Date of Defense

4-7-2000

Department

Management

First Advisor

Thomas Carey, Management

Second Advisor

Raymond Alie, Management

Third Advisor

Gwendolyn Barnes, Management

Abstract

The purpose of this study is to write a business plan for the development of office and apartment units in Suttons Bay, Michigan.

Assumptions:

  • The building is listed at $1.25 million but can be acquired for $800,000 or less.

Major Findings:

  • There is a shortage of retail space, office space, and apartments in the Village of Suttons Bay
  • The current rental rate for retail and/or office space in Suttons Bay is between $8 and $12 per square foot.
  • The current rental rates for apartments are as follows: 1 bedroom unit $375-450, 2 bedroom $425-575, and 3 bedroom $600-700.
  • The plans to rehabilitate the building comply with all laws and regulations.
  • A limited liability company is the best form of business for the owners.
  • The project is financially feasible.

Limitations:

  • Personal interviews had to be limited because the project is in a small town and word travels fast.
  • Limited information on the basis of property taxes.

Recommendations:

  • The plans for the development project should be implemented.
  • Grand opening promotion should be used to publicize the project.
  • The owners should form a limited liability company.
  • All laws and regulations applicable to the project should be followed.
  • The owners should investigate the development of a hotel and/or restaurant on the site as the next stage of development.

Comments

Prepared for:

Seeco Contracting Corporation

101 Dame Street

Suttons Bay, MI 49682

Access Setting

Honors Thesis-Campus Only

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