I've spoken with a number of RA members about the land pricing issues, and after reading today's postings it looks like I need to make very clear what my position is on the proposal that the RA will be discussing tomorrow. More important, I'd like to explain how I decided on my position, and I hope that explanation may help others sort through the flaming rhetoric that we like to toss around and get to the heart of the matter.
First, let's understand that ALL we're discussing is the question of what the PRICE should be for land reposessed by CDS and resold. In particular, we're not discussing whether or not an auction process would be a good thing to implement. We previously had a discussion of the land sale PROCESS, and as far as I know, what was presented and discussed in RA last month is what is supposed to be currently in force. No other proposal is on the table. Here's the most current reference I have: http://forums.slcds.info/viewtopic.php? ... ess#p13928 . Somehow after the last RA meeting the yellow squares on the map suddenly reappeared, and I have not had a chance to talk with Jamie and Rose about why this happened. But I'm assuming that this is a temporary issue, and that it will be straightened out shortly.
**[EDIT] Rose has enlightened me on this: I was mistaken in thinking that we would be using the drawing process over the long term. The only process we have right now is the "yellow map" process, and prices are set to the statutory price. Thanks for clarifying, Rose. [END EDIT]
So we know how the process works, and that it assumes that CDS will sell repossessed parcels at the statutory price. Statutory prices are set by the RA. Right now I think that everyone agrees that the statutory prices are too high, WAY out of line with parcel pricing anywhere else in SL whether priced per prim or per square meter. What we will try to decide tomorrow is whether we should reprice parcels to $0L or to the equivalent of one month of tier.
The Chancellor's original proposal was to price the parcels in question at $0L. This may be sensible in the current environment: LL started giving away parcels a while back, and private estates have followed suit. Just use "Search" and check the "Land Sales" tab and you'll see a lot of parcels, large and small, listed for $0L. But that's not the whole story. Parcels still have a value -- as Rose commented in another thread (http://forums.slcds.info/viewtopic.php? ... 619#p13986), LL is still charging $705 USD for a sim, and even in the secondary market a sim can't be bought for $0. And in established communities like CDS, people aren't just buying a parcel. In our case, the parcels have value as a participation in our experiment in virtual democracy. If you want to be part of that, you are probably willing to pay something more than zero for the privilege. I can actually attest to that personally, as can Jimmie: he was not willing to pay me the statutory price for my small house in AM, but he WAS willing to pay a bit more than one month's tier. I'll leave it to him to explain why he was willing to do that, but I expect that he is not the only one.
So parcels in CDS really do not have "zero" value. In talking with Gwyn, Sonja, Arria and others who were strongly opposed to the $0L pricing proposed by the Chancellor, the main objection was that if we approved a statutory price of $0L, we would be devaluing not just the currently unsold parcels, but every parcel in every sim that is part of CDS. Not only would we be in one sense "taking" value from current parcel owners, we would be indicating that there was really nothing special about CDS that might incline people to be willing to buy in in the same way that one might buy into a food cooperative or a credit union where everyone owns a share and has a vote on critical issues.
After last week's meeting, Jamie and Gwyn discussed their respective positions at length. And as Gwyn commented to me the next day, it was surprisingly easy for them to find a potential solution that could address the concerns of those who believe that even in the current market, the value of a CDS parcel is not $0L. Here's Jamie's account of their discussion and his proposed amendment: http://forums.slcds.info/viewtopic.php? ... =15#p13976
Jamie does a good job of making the case for the original $0L proposal, so I won't do it here. And I certainly understand from his posting that he would prefer that the RA approve it that way. But he also makes it clear that while he considers amending the proposal unnecessary, he would not object.
So what exactly is the proposal? It works like this. As I outlined above, notice would be posted of parcels for sale. They would be listed at $0L, and the winner of a parcel would pay (as in Jamie's original proposal) 2 months of tier in advance. When Sudane does the bookkeeping, one month of tier would go on the books as "purchase price." The other would be credited as two months of tier paid at a 50% discount.
That's it, period. You'll all note (as I did after I started looking at the suggested amendment) that there is NO difference between the original proposal and the amended proposal in terms of how we advertise, economic impact on CDS when the parcel is sold, or economic impact on the buyer. The buyer sees a parcel available for $0L, pays two months of tier in advance when he/she takes possession, and after those two months pays tier at the normal rate. The ONLY difference is psychological: the buyer and all other CDS parcel owners understand that the statutory value of that parcel is actually one month of tier. When this idea was first floated past me early last week, I did a little number crunching to see where various parcels might stand. Here's a sample:
Code: Select all
Sim m2 Prims Tier L$/m2 L$/prim
AM 512 234 $2,620 $5.12 $11.20
AM 1024 469 $5,241 $5.12 $11.17
CN 816 187 $2,264 $2.77 $12.11
CN 2528 581 $6,472 $2.56 $11.14
LA 512 234 $2,227 $4.35 $9.52
LA 1024 469 $4,455 $4.35 $9.50
NFS 320 74 $ 751 $2.35 $10.15
NFS 464 107 $1,094 $2.36 $10.22
NFS 1584 364 $2,800 $1.77 $7.69
I haven't done any serious analysis of non-CDS parcels to see how the L$/prim stack up, but the L$2 to L$5 per square meter is right in line with what seems to be going on with resales in desirable areas of SL based on the checking that I've done. And since our major problem with the current statutory pricing was that our prices were far in excess of the L$/m2 being charged elsewhere, it seems to me that resetting in the way that Jamie suggested would be a good way to resolve that problem.
So in summary, I support Jamie's proposed amendment for the following reasons:
1. It is economically equivalent to pricing land at $0L and just charging the full amount of tier with no discount.
2. It addresses the economic fact that land prices in SL have declined, and resets those prices to market rather than devaluing all parcels in CDS to $0L.
3. It ensures that new residents will be committed to CDS for at least two months. That may be true of the original proposal also, but I think that the psychological impact of setting a market value on a parcel may discourage the "land flipping" that some fear and encourage bonding with the community.
4. It is a proposal that everyone can live with even if not everyone thinks it is perfect.
That last is a big thing for me, really the most important thing about this whole discussion. As an Al Andalus resident, I really enjoyed the process of making decisions by consensus. It's not the most efficient and sometimes not the most logical, but it did have the virtue of allowing everyone to feel as though their concerns had been clearly heard and respected by everyone else before a final decision was made. As an observer and participant in the contact sport that is CDS politics, I have noted that the stronger faction or coalition often gets its own way despite strident concerns voiced by others. And those concerns don't go away when a decision is rammed through -- they go underground and fester and eventually surface in a skirmish over another issue. I think it's about time our little experiment in virtual democracy moved beyond the idea of politics as a contact sport and towards learning to build consensus on contentious issues within the framework of our contention-driven system. It's not something that most of us are conditioned to do naturally, but in talking with RA members this week, I'm hopeful that I'm not the only one who would like to see if we can learn how here in CDS.
Cindy