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#SolarWebinar
Developing Solar RV and Boat Storage
A Lesson in Earning!
#SolarWebinar
Kelly Pickerel Solar Power World
Moderator
Matt Harrison Director of Business
Developent Baja Construction
Bob Hayworth Founder & Chairman
Baja Construction
Developing Solar RV and Boat Storage – A Lesson in Earning!
Meet your presenters…
RV and Boat Storage
A Case Study “ONE YEAR LATER”
Project Overview Project Owner: Robert Hayworth Project Type: Solar RV and Boat Storage LocaEon: Oakley, California Site Lot: 8.2 acres Total Developed Square Footage: 357,560 Zoned: Light Industrial Solar UElity: PG&E FIT: 20 yr. PPA ($0.14.4khw) Rental Capaci4es Total Retable Square footage: 179,000 Total rentable Spaces: 320
Project Ameni4es Shaded and Paved Parking for RVs and Boats serving the Greater San Francisco Bay Area and Delta Waterways. Security, Services and Shaded Parking.
v 24-‐Hour Surveillance and Security
v Shaded Storage v Asphalt Paving v Charging Outlets v Water and Dump StaEon v Ice, Air, and Propane v Restrooms and Shower v Wi-‐Fi and Conference
Rooms
Project Performance Solar Average Annual Solar ProducEon: 2,627,326 kWh Average Annual Solar Income: $380,000.00 (2014) Solar Performance: 112.4% Storage Occupancy Capacity to date: 52% Average Annual Storage Income: $379,766.00 (2014) Total Project Performance Average Annual Income: $759,766.00
Cost Overview • Total Project Cost -‐ $10.7MM
v Land Cost -‐ $1MM v Development Costs -‐ $500k v Land Improvements -‐ $2.9MM v Canopies -‐ $1.3MM v Steel Fence -‐ $500k v Solar -‐ $4.5MM
Tax Benefits
Cost Breakdown Including Tax Incen4ves, and Avoided Tax
Total Project Cost $10,700,000.00
1603 ITC (Grant) ($2,100,000.00)
Project Cost afer ITC $8,600,000.000
Loan Amount $7,500,000.000
MACR (accelerated dep.) 5 Years ($3,200,000.00)
Debt Service $32,000.00 / Month
Project revenue (Solar+ rent) 2014 $63,314.00 / Month
Project revenue (Solar+ rent) Projected at 100% Capacity
$83,314.00 / Month
IncenEves ü 1603 ITC (Grant) = $2.1MM
Accelerated Depreciation ü MACR= $3.2MM
Target Demographics Op4mizing your Target Demographics ü Gender ü Income Level ü Age ü OccupaEon ü Marital Status
SegmenEng a populaEon into demographics allows companies to assess the size of a potenEal market and also to see whether its products and services are reaching that company's most important consumers. For example, a company that sells high-‐end RVs would want to know roughly how many people are at or nearing reErement age, and also what percentage of them will be able to afford the product. This informaEon will help the company to decide how much capital to allocate to producEon and adverEsing. Read more: hnp://www.investopedia.com/terms/d/demographics.asp#ixzz3WAaSlbGV
Types of MarkeEng and adverEsing strategies used; v Visibility v TV v Website v Signage v Radio v Print v Social Media
MarkeEng & AdverEsing When it comes to markeEng, operators of boat-‐ and RV-‐storage faciliEes face many of the same challenges as tradiEonal self-‐storage operators—namely budget restraints and maximizing new strategies. However, there is one significant difference: the tenant. While self-‐storage operators can market to any person or business in their target area, the boat/RV-‐storage operator must target a very specific type of customer. That’s why careful markeEng is such a criEcal component of every boat/RV-‐storage operaEon’s success. hnp://www.insideselfstorage.com/arEcles/2011/04/criEcal-‐components-‐to-‐a-‐boat-‐rv-‐storage-‐markeEng-‐plan.aspx
A HAPPY CUSTOMER AND WORD OF MOUTH IS YOUR BEST MARKETING STRATEGY !!!
Facility OperaEons At any self-‐storage facility, tenants pay anenEon to customer service, superior security and ameniEes. FaciliEes that excel in these arenas will anain a high occupancy. Those lacking will likely drive customers away. For faciliEes that provide RV and boat storage, these qualiEes are parEcularly crucial to anract and maintain tenants. hnp://www.insideselfstorage.com/arEcles/2013/06/running-‐a-‐profitable-‐boat-‐rv-‐storage-‐operaEon-‐service-‐and-‐ameniEes-‐drive-‐success.aspx
Oakley Average monthly OperaEons Cost • Staff • UEliEes • Maintenance • Security
$10-‐12,000.00 / Month
Lessons Learned Development ü Locate Property ü Complete Market Analysis ü Calculate ROI / Proforma ü Contact Architect / Builder ü Create Budget ü Secure Financing ü Permitng ü ConstrucEon Scheduling ü PPA
Construc4on ü Construction ü Planning and Zoning ü Procurement ü Solar Integration ü Interconnection ü Utility Reservation ü Utility Construction
Operations ü Staffing ü Sales ü Security ü Customer Service ü Maintenance
Summary WanEng to know what it costs to build self-‐storage faciliEes is ofen the first quesEon a new investor asks. It seems like a simple quesEon, but once you delve a linle deeper, you will find that there are a lot of variables that make that quesEon hard to give an easy answer to. LocaEon, design, zoning restricEons, site improvements needed, etc., will all impact the costs to build your self-‐storage facility. A bener quesEon might be, “How much do I need to invest and what research do I need to do in order to ensure profitability in a new self-‐storage business?” As an investment or as a new business venture, RV and Boat Storage is a winner. Without overhead in inventory, staffing, or a lot of operaEonal equipment, RV and Boat Storage has a relaEvely low barrier to entry. But RV and Boat Storage is a business, and must be evaluated in the same way you would evaluate any other business. Adding a solar component to your project, if applicable, and also if you are able to facilitate the appropriate agreements with the uElity will add a level to the income profile of your business model that is unsurpassable. Be aware that the proper
planning of this endeavor is the key to its success.
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Thank You q This webinar will be available at
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