Financial Reviews PARKING PROBLEM

NZ Truth, Issue 1261, 30 January 1930, Page 15

Financial Reviews PARKING PROBLEM

Wellington Scheme To Solve Motorists' Troubles

RELIEVING CONGESTION

(By "Fiat Lux.")

With its narrow streets, "Wellington is, a City where the parking problem is a particularly difficult one to contend with, amd a car-owner considers' himself lucky if he can find' a space to put his car within reasonable distance of his office, shop, or warehouse, or any place at which he may be making a call.

THE Wellington Motor Parking- Stations, Ltd., has for its objects the provision of a parking station on modern lines, and it -prill be the first of its kind m New Zealand. The site upon which it is proposed to erect the first station is a very convenient one, right m the heart of the office area, and possesses frontages to three streets. Upon this site it is proposed to erect a building of ten stories, capable of parking 500 cars, besides providing space for a restaurant and club rooms and servicing facilities. . The access to each floor will be pro 7 ..vided by lift and a ramp. The building will be so constituted that the ramp will only rise four feet six inches from floor to floor, thus providing an easy gradient. The revenue of the oompany will be derived, frortv the. following: Parking cars, oil and petrol sales, washing, polishing and oleaning carsf. charging and supplying batteries, adjustments to and re- lining brakes, sales of tyres and accessories, collection and delivery of cars, also rents from offices, clubrooms" and show-rooms.. The parking will take the form of "temporary" or "permanent" parking, and charges will be rated accordingly. The proposed capitalisation is as follows: Cost of sites (leasehold) £9000, building £90,000 A expenditure before building becomes revenue-producing £16,000, ground rent, interest, preliminary expenses, etc., £115,000 It is proposed to find the capital m the following forms: First mortgage, £30,000; 8 per cent, mortgage debentures,, £30,000, and 75,000 shares of £1 each called up to £55,000; totalling £115,000. The estimated l'evenue, according to the prospectus, "is based on minimum charges, and a conservative estimate of profits on subsidiary services. The estimated expenditure is: Car parking, washing, cleaning, collecting, delivering, battery service, repairs, £14,750; profit from petrol sales, oil, batteries, tyres, etc., £3000; rents from club -rooms and show-rooms, £750; totalling £18,500. It is stated that the estimated revenue, with "the exception of that for club-ro.oms and show-rooms, is based on the figures shown m the audited trading acoount for the year ended June 30, 1929, of .a company carrying on a similar business m Sydney, proportionate fig•-'---ures being based on the car-park-ing capacity of the respective parking stations. With the building carrying its full capacity the revenue from car-parking

and service works out at £29/10/---per car per annum. The estimated expenditure is shown as follows: — £ Salaries, wages 4,000 Directors' and auditors' fees 700 Rates, insurance, etc. ...... 1,628\ Repairs and depreciation of building 600 Ground rent ........... 1,481 £8,379 The position is summarised thus:— £ & Total estimated revenue 18,500 Total estimated expenditure 8,379 10,121 i» ■ . - Interest on first mortgage at 6 per cent. . . 1,800 Interest 'on second mortgage debentures at 8 per cent. 2,400 4,200 Balance available subject to provision for income tax £ 5,921 This represents over 10 per cent, on the paid-up capital. It is noted that the directors reserve the right to carry out a modified scheme at first and extend it as conditions warrant. ' The right ifl also, reserved to rearrange the mortgage arrangement at discretion. Provision is made for a brokerage not exceeding 7% per cent., plus disbursements and out-of-pocket expenses at directors' discretion, and the promoter is to' get £2500 for the options and organisation work. The provisional directors are: Ernest W. Hunt, chartered accountant (Aust.), Wellington; Dougall J. McOowan, company director, Wellington; John H. Miles, solicitor, Wellington; Arthur G. Whitcombe, company director, Wellington. The scheme is one worthy of . support from all motorists, as -it , is m effect an insurance against many of the risks caused by modern traffic problems. The time is rapidly approaching when permanent parking must be prohibited m certain city areas. . Such a prohibition has already taken place m Sydney. The congestion m the streets would be relieved by such a parking station as is proposed m the above scheme. Capable management will be necessary to make the venture a success, but if the scheme is supported by motor-car owners, as it should be, there appears no reason why the shares should not show a reasonable return when the scheme is m full operation.