Bill Proposal: Land Sale and Tier Act

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Trebor Warcliffe
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Bill Proposal: Land Sale and Tier Act

Post by Trebor Warcliffe »

As a citizen of the Confederation of Democratic Simulators I would like to submit my proposal for legislation to the Representative Assembly, the Land Sale and Tier Act, and asked it be placed on the agenda for the next RA meeting after August 1st 2014. I would like to be present at the meeting to answer any questions or concerns. My availability to attend meetings are Mon - Thu 2pm SLT - 5pmSLT (these are the times I can be at the start of a meeting taking into consideration a typical RA meeting lasts 2 hours). Friday 2pmSLT - 7pmSLT. Saturday and Sunday anytime up till 7pm SLT.

Land Sale and Tier Act

Rationale

The Confederation of Democratic Simulators is preparing to expand. As we expand we must plan and prepare properly. Before we accept proposals on a new sim the submitters need a framework from which to work from. Whether we expand by one sim or one hundred sims some constants must be known from the beginning.

We want our tier to be the same throughout the CDS, one tier for full sims and one tier for homestead sims. We want our occupancy level or break-even point to be the same throughout the CDS. With both of these variables set from the beginning everything else falls into place. These two variables determine the public to private land ratio.

1. All CDS owned land on a Full Sim placed for sale by the government shall be at the rate of L$1.50 per sqm for a single-prim parcel and L$3.00 per sqm for a double-prim parcel.
2. All CDS owned land on a Homestead Sim placed for sale by the government shall be at the rate of L$6.00 per sqm.
3. All Full Sims tier rate is US$0.03 (3cents) per prim.
4. All Homestead Sims tier rate is US$0.06 (6 cents) per prim.
5. The occupancy level or break-even point is 75%.
6. The prim multiplier for all Homestead Sims (excluding Monastery) is 6.
7. New tier pricing will take effect the day sim number six is ready to accept citizens.
8. New tier pricing in Neufriestedt, Colonia Nova, Alpine Meadows, and Locus Amoenus will take effect on CDS owned parcels that are NOT owned by citizens the same day.
9. Current tier pricing on NFS, CN, AM, and LA will remain in place until ownership of the parcel changes hands.

This next part is for clarification purposes only. Using the above information here is the framework for all new Full Sims and Homestead Sims brought into the CDS.

Full Sim – Monthly tier to Linden Labs US$295. Tier collected at 100% occupancy US$393
Single-Prim Sims Private SQM 57,326 Public SQM 8,210. Private Prims 13,100 Public Prims 1,900
Double-Prim Sims Private SQM 28,663 Public SQM 36,873 Private Prims 13,100 Public Prims 1,900
Homestead Sim – Monthly tier to Linden Labs US$125. Tier collected at 100% occupancy US$166.
Six Prim Multiplier – Private SQM 8,071 Public SQM 57,465 Private Prims 2,767 Public Prims 983

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Re: Bill Proposal: Land Sale and Tier Act

Post by Gwyneth Llewelyn »

I like this. I haven't checked the prices and the calculations, but, as a matter of principle, I agree on general on everything!

... except for some minor thing. Linden Lab's official designation is 'regions'. 'Sims' or 'simulators' is the software that simulates 'regions'. To be consistent with LL's wording (that is specially important because the LL ToS is part of our founding documents), I'd suggest to consistently use the word 'region' throughout the bill.

Beyond that, I have nothing further to add :)
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Re: Bill Proposal: Land Sale and Tier Act

Post by Gwyneth Llewelyn »

BTW here are the official definitions: http://wiki.secondlife.com/wiki/Simulator
In common usage, "sim" may also be used to mean region, though this meaning is deprecated because it is ambiguous. Most accurately, a region is simulated by a sim process running on a sim node.
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Re: Bill Proposal: Land Sale and Tier Act

Post by Trebor Warcliffe »

Gwyn,
Thank you very much for your input. I will reword my proposal accordingly and repost it on this thread.

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Re: Bill Proposal: Land Sale and Tier Act

Post by Soro Dagostino »

STOP THE PRESSES!!!

The world is coming to an end!!! Gwyn agrees!!!!!

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Re: Bill Proposal: Land Sale and Tier Act

Post by Gwyneth Llewelyn »

Haha Soro — I agree with 90% of what everybody proposes, lol. It's the 10% that make the difference, though...

Seriously, one issue that was discussed months ago on the proposal for a new region was the issue about pricing. There is always a complex negotiation regarding that, and, because 'someone' has to calculate the prices, the proposals for a new region might be complicated. With this law in place, it will be much easier!

Oh, btw, for clarification purposes, this bill should also add that it does not apply to the NL 8-4 Private Development Act (http://portal.slcds.info/index.php/faqs ... pment-act/), since, in that case, it's the private landowner that sets the price and sells the parcels, not Government.
Last edited by Gwyneth Llewelyn on Fri Aug 01, 2014 3:30 am, edited 1 time in total.
Reason: Missed plural on word 'parcel'
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Re: Bill Proposal: Land Sale and Tier Act

Post by Soro Dagostino »

The RA did a good job today.
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Re: Bill Proposal: Land Sale and Tier Act

Post by Bromo Ivory »

Soro Dagostino wrote:The RA did a good job today.
Not for nothing, should a SC member make "good" or "bad" judgement calls about the operation of another branch?

But having said that, they DID do good. I like the discussion about the SIM - if they keep it up, we might just get one this term!! :-D

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Re: Bill Proposal: Land Sale and Tier Act

Post by Trebor Warcliffe »

Just to give everyone an update on my proposal for the Land Sale and Tier Act. Over the next few days I will be editing my proposal. The word sim will be changed to region, I will add the part Gwynn has asked about NL 8-4 Private Development Act, and most importantly I will add to my proposal that if there is a change in the cost of tier for a region to Linden Labs that our tier will adjust up or down for the same percentage. Example right now a full region tier to LL is US$295.00. An increase of 10% would be an increase of $29.50. So our per prim rate would go from 3 cents (0.03) to 3.3cents (0.033). The same would happen if costs would decrease. For example if a full region tier to LL changes to US$275.00 our prim rate would change from 3 cents (0.03) to 2.8 cents (0.028). I believe this addresses everyone's concerns at this point. Any other suggestions please post here and again, thank you to each individual who has given me feedback and input in regards to this proposal.

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Re: Bill Proposal: Land Sale and Tier Act

Post by Trebor Warcliffe »

Land Sale and Tier Act

Rationale

The Confederation of Democratic Simulators is preparing to expand. As we expand we must plan and prepare properly. Before we accept proposals on a new region the submitters need a framework from which to work from. Whether we expand by one region or one hundred regions some constants must be known from the beginning.
We want our tier to be the same throughout the CDS, one tier for full regions and one tier for homestead regions. We want our occupancy level or break-even point to be the same throughout the CDS. With both of these variables set from the beginning everything else falls into place. These two variables determine the public to private land ratio.

1. All CDS owned land on a Full Region placed for sale by the government shall be at the rate of L$1.50 per sqm for a single-prim parcel and L$3.00 per sqm for a double-prim parcel.
2. All CDS owned land on a Homestead Region placed for sale by the government shall be at the rate of L$6.00 per sqm.
3. All Full Regions tier rate is US$0.03 (3cents) per prim.
4. All Homestead Regions tier rate is US$0.06 (6 cents) per prim.
5. The occupancy level or break-even point is 75%.
6. The prim multiplier for all Homestead Regions (excluding Monastery) is 6.
7. Any change in tier pricing implemented by Linden Labs shall result in the CDS adjusting tier by the same percentage no later than the last day of the upcoming month.
8. New tier pricing will take effect the day region number six is ready to accept citizens.
9. New tier pricing in Neufriestedt, Colonia Nova, Alpine Meadows, and Locus Amoenus will take effect on CDS owned parcels that are NOT owned by citizens the same day.
10. Current tier pricing on NFS, CN, AM, and LA will remain in place until ownership of the parcel changes hands.
11. The Land Sale and Tier Act does not apply to the NL 8-4 Private Development Act.

This next part if for clarification purposes only. Using the above information here is the framework for all new Full Regions and Homestead Regions brought into the CDS.
Full Region – Monthly tier to Linden Labs US$295. Tier collected at 100% occupancy US$393
Single-Prim Regions Private SQM 57,326 Public SQM 8,210. Private Prims 13,100 Public Prims 1,900
Double-Prim Regions Private SQM 28,663 Public SQM 36,873 Private Prims 13,100 Public Prims 1,900
Homestead Region – Monthly tier to Linden Labs US$125. Tier collected at 100% occupancy US$166.
Six Prim Multiplier – Private SQM 8,071 Public SQM 57,465 Private Prims 2,767 Public Prims 983
Let us move away from all of the "us" and "them" and turn our attention to "we."

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Re: Bill Proposal: Land Sale and Tier Act

Post by Widget Whiteberry »

Thank you for doing this. And ... I don't understand why the rate per sq meter on Homestead Regions is more than on the others. Isn't total tier less?
. All CDS owned land on a Homestead Region placed for sale by the government shall be at the rate of L$6.00 per sqm.
(edited for clarity)

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Re: Bill Proposal: Land Sale and Tier Act

Post by Rosie Gray »

Trebor, I think this is tremendous work. I was wondering if you have a comparison chart you could post here for us, showing the current rates vs. the proposed rates.

Thank you
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Re: Bill Proposal: Land Sale and Tier Act

Post by Trebor Warcliffe »

Widget Whiteberry wrote:Thank you for doing this. And ... I don't understand why the rate per sq meter on Homestead Regions is more than on the others. Isn't total tier less?
. All CDS owned land on a Homestead Region placed for sale by the government shall be at the rate of L$6.00 per sqm.
(edited for clarity)
Thank you for your question Widget. You actually have two separate questions here. L$6.00 per sqm is the purchase price for land on a Homestead Region. The tier on a Homestead Region with a 6x multiplier is US$ .06 (6 cents) per prim.

A Homestead Region does have the same SQM as a Full Region. However a Homestead Region only has 3,750 prims where a Full Region has 15,000 prims. A Homestead Region costs US$ 125 monthly and a Full Region costs US$ 295. Dividing the cost into the amount of prims gives you the following cost per prim using 250 as the conversion factor for 250 Lindens = 1 US Dollar. US$ 125.00 * 250 = L$ 31,250. L$ 31,250 / 3,750 prims = L$ 8.33.

Now that I've made the answer even more complicated I will break it down using a 512sqm parcel as my example. A 512sqm parcel on a Homestead Region with a prim multiplier of 6 will contain 175.5 prims. So based on my above calculations (L$ 8.33 * 175.5 prims = L$ 1,462) which is US$ 5.85. At 6 cents per prim the tier we collect on that parcel is US$10.53. That may seem kind of high right now and it would be if we were collecting tier on the entire Homestead Region, but we're not.

In order to maintain a 75% occupancy rate using 6 cents per prim as the variable, we need to allocate 8,071sqm OR 2,767 prims for private use. This leaves 57,465 sqm OR 983 prims for public use. So the tier we will collect on a fully rented Homestead Region at 6 cents per prim would be $166.00. On a new Homestead Region this would give us 15 parcels at 512sqm, 1 parcel at 256sqm, 1 parcel at 128sqm, and a leftover amount of 7sqm. Obviously the configuration of sqm or prims per parcel doesn't have to be 512sqm but we do have to keep the amount within the 8,071sqm OR 2,767 prims allocation or very close to it. In the same train of thought we could have 31 parcels at 256sqm.

The calculations for the sale price of a Homestead Region parcel is similar to a Full Region parcel. Currently we sell single-prim parcels at L$1.5 per sqm and a double-prim parcel at L$3.0 per sqm. A Homestead Region with a prim multiplier of 6 would be a sextuple-prim parcel. A Homestead Region has 1/4 the amount of prims of a Full Region so based on that I come up with L$6.0 per sqm.
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Re: Bill Proposal: Land Sale and Tier Act

Post by Trebor Warcliffe »

Rosie Gray wrote:Trebor, I think this is tremendous work. I was wondering if you have a comparison chart you could post here for us, showing the current rates vs. the proposed rates.

Thank you
Rosie here is the link to Google Drive that contains the PDF file that contains all of my charts. I don't know how to include Excel documents into a post here on the forums. I know it can be done, Ceasar did it for his budget I believe, but I don't know how. If you know how or if you can take the information from the link provided that would be great.

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Re: Bill Proposal: Land Sale and Tier Act

Post by Sudane Erato »

I am with total respect for Trebor's work on this very much needed resolution. He indeed thoroughly understands sim numbers and economics, and he has presented them in as clear way as I have ever seen... despite the seeming profusion of numbers for those who may be more number-impaired.

The only question I would raise is purely conceptual. Trebor proposes an economic template for each new sim that we add. In the interest of making this somewhat complex task as easy as possible for everyone to understand, which intent I TOTALLY agree with, the template has fixed numbers for public/private land ratios and prim multipliers.

The numbers as presented create a sim like LA, with a very low number of public prims and a high ratio of private prims. This template would completely prevent creation of a sim like Neufreistadt, which has a comparatively huge number of public prims (I don't have the numbers offhand, but I think as many as a third or more of the prims of NFS are public). I suggest that it might be a shame to constrain ourselves to a new sim template that eliminates the option of creating a sim such as NFS.

Sadly, my suggestion can only make Trebor's elegant and accurate solution much more complex... and he is quite right to urgently propose that the details of this be simple. But perhaps a tiny clause might be inserted into the proposal that, subject to the same requirements of break-even calculations, modifications to the template will be considered by the RA for justifiable cause.


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