T= 0, here.
They decide no, they're not going to spend anything,
they're not going to get anything so they get zero, okay?
If they try for a variance they're going to
have to spend $40,000 on this.
That's what it's going to take to pay the lawyers, etc, etc.
Get the land platted, all that junk, okay.
And then what's going to happen, if they take that try variance path.
The variance may or may not be granted, and they think this is going to take
about a year to do all the work on the variance and get a decision for it.
They feel, based on their past experience and
their knowledge of the local authorities etc.
They think they have about a 70% probability of getting a variance granted,
and a 30% probability that they're going to fail.
So that's what we'll put in at that event node, okay?
Now we're just going to continue
with assuming the variance is granted, because if its not we're done, right?
Project is over, okay?
So if they get granted here,
what can happen is they can decide to develop the property,
which is really what these guys are in the business of.
They're in the business of.
Buying a properties, getting variances as needed and then developing them.
But another thing they could do if they feel like the market is about to turn or
for any reason.
If they just have a capital shortage, they need to raise some cash.
What they could do at that point is sell the varianced property and that property,
they've added a lot of value to that property
just by changing its zoning status.
So if they sell the variance property they think they could do that immediately
right, after the variance is grounded.
And they think they could get 60,000 for it, okay?
If they decide to develop the property,
they're going to have to invest another 200 million.
Sorry, I said thousands a few times, but all of our units here are in millions.
Okay, so they try for variances, clearly big properties something like Manhattan,
Tokyo, Beijing, something like that.