Parking formula

This is a formula for estimating the value of a piece of property to the local church used for additional parking.

First, estimate the number of vehicles that can be parked on the property.

Second, take the total annual income of the local church divided by the average attendance of the church to find the actual amount per person given to the church annually.

Third, take amount give per person and multiply it by the 2.5 (the number of people who come to church in one vehicle on average.)  This will give you the potential income for each additional parking space.

Fourth, Take that figure time the number of parking spaces from step one.

Fifth, Take that figure times 10 for a ten year period.

Example

A church of 65 with an annual income of $ 65,000 Is looking to purchase a lot with a home on it for

$250,000, and they want to know if they should go forward.  They could park an additional 30 cars, and their current parking lot is 90% full most Sundays.

Following the formula:

Step one= 30 cars

Step two  $ 65,000 / 65 = $ 1,000

Step three= $ 1,000 * 2.5= $ 2,500.00

Step four= $2,500 * 30= $75,000 one years potential income.

Step Five= $75,000 * 10 = $ 750,000 potential income over ten years.

$ 750,000 potential income less the $ 250.000 cost = $500,000 in increased income the first ten years.

Source: Terry Cavanaugh