3; the motel concept, although proven and tried in a number of other
large cities, is a new and novel concept in the subject city.
Therefore, there is a high risk attached to the proposal. A novel
land use such as this is called a pioneer land use. The
appropriate profit and risk factors adopted for the 3 alternative
pa. A risky land use, riskier than the conversion to flats in an
established residential area.
pa. A proven land use and relatively safe because warehouses of the
same proposed design have sold well in this area.
per annum. A pioneer land use and therefore, a high risk use. The
first time a motel has been built within an industrial area in this
city. Therefore, a potential investor would require a high return as
compensation for the high risk.