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Some Common Questions We Still Get (Part 4 of 4)
Today we’re wrapping up a series of articles addressing some questions that had come up on one of our social media channels. The conversation went like this…
“I have seen this before, it is a nice thing but…….a few things that jump out are:
1 – Does that area have the tourism numbers to cover the expenses as the taxes will be massive? (Click here to read my response to this question)
2 – Finding property that could support that kind of massive development(may be difficult). (Click here to read my response to this question)
3 – Fighting off protest as you know groups will say it will harm the environment. (Click here to read my response to this question)
4 – Funding as per the layout in video, that thing is going to cost hundreds of millions to construct.”
Today we’ll conclude with answering the fourth question that came up in this conversation. To read the first installation, click here, the second installation, you can find here, and the third right here.
“Funding as per the layout in video, that thing is going to cost hundreds of millions to construct.”
The funding topic is certainly a large aspect of this endeavor. In its simplest form, there are two parts. What is this estimated to cost and where will it come from?
Here is the best “short” answer because both are extremely complex.
Cost – After seeking out design professionals familiar with multimillion square foot structures, specifically with experience in malls, campuses, amusement parks, and large sports venues, we have indeed come up with a proposed cost. Published in a local paper based on one of our town hall meetings was $400 million dollars. That was my answer to the construction proper, but there will be associated costs.
Much of the facility is of the prefabricated design which drives costs down tremendously. As-built structures were studied all over the country to determine this. There are examples that were able to get their overall per square foot cost down to under $100 with very similar venues and support structures, being over one million square feet currently.
Things like rail access for instance drove costs down tremendously as well. One of the nation’s largest steel fabrication companies was involved in the estimation, logistics, and construction options. From the combined experience of many in this field, we are confident in the estimates.
Funding – This is certainly important and may even seem overwhelming. I like to add something to the conversation when funding comes up: it may seem like the key component, but it is actually the second most challenging to accomplish.
The first most challenging component is not funding, but is people. People with the skills to pull this off, and then in turn operate it are more challenging to find and secure than the funding. Many “business professionals” will simply say wave money and you will get the people. However, that goes against the core philosophy of The ZIPPER JUNCTION Project™. I am not saying compensation will not be made, but there will be no twenty million dollar CEO here, if you know what I mean.
As far as the funding goes, there is a wide array of tools at our disposal. Crowd funding campaigns on one side (small amounts from many) to large philanthropic investment on the other (large amounts from few) were extensively researched and are planned.
Crowd funding in the one hundred to two hundred million dollar range has already happened, and can happen again. In between the two extremes are many other forms of capital generation that involves tried and true campaign tactics and programs.
Advisors to institutions like major Universities and Hospitals have been consulted and even retained for periods of time. Questions about the two extreme methods as well as any of the others all have proven examples and methods that we based our expectations on.
Obviously there is a lot more to this all, but I hope this gives you some idea of what went into it to date.
Maybe you have a place in The Project or know someone who does!
And so this concludes our two week series answering four of the more tough questions we receive (and we get many of them!). I hope this shines some light on this whole project for you. I’d love to hear any questions, comments or concerns – feel free to leave a comment below.