https://forum.citydao.io/t/cip-102-acquire-baby-parcel-for-nft-leases/1625
This proposal aims to acquire a small piece of land and authorizes off-ramping $9,999 for acquisition of the parcel that will be used for experimental NFT leases. The project will serve as a prototype for the Big Parcel project and leases will be made available to Citizens. The project team will research parcels and give the community a few parcel options to choose between.
Specifically, we propose to purchase a vacant piece of land in the San Luis Valley of Colorado, where land is cheap, near tourist attractions such as Great Sand Dunes National Park, and where there are minimal HOAs or land use restrictions - for $9,999 or less - and to then experiment with subdivided leasehold interests for the holders of the NFTs. For example, CityDAO could purchase a 5 acre lot for around $5k, and “subdivide” the parcel into 10 half-acre parcels that would represent certain rights related to each sub-plot (Baby Parcel NFTs). We could also look at using Harberger mechanisms for rights transfers and additional value creation for CityDAO.
Josh - Project Lead, real estate transactions Scott - real estate Lyons - strategy Konrad - operations Gugz - Big Parcel liaison and planning Project Team: facilitators will select and reward up to 6 Citizens who aid the project in dev, media, and design.
Project Facilitator Rewards: $2,500 USDC + 3 Citizen NFTs each
Project Team Rewards: $1,000 USDC + 1 Citizen NFT each
Additionally - CityDAO will retain one Baby Parcel NFT and the Project Facilitator and Project Team will collectively get the right to decide what to do with said NFT as a collective team.
Please Note - the rewards are an incentive for completion of the project. Upon successful launch of Baby Parcel NFTs as determined by the multisig holders, the multisig is authorized to transfer the comp.
Community Engagement – The Baby Parcel will provide CityDAO with a project that is achievable in the short run. The community will have something to be executed about, and the “doers” can get back to work adding value to CityDAO in a meaningful way. Once news of the Baby Parcel breaks, CityDAO can expect an influx of interested and willing contributors to step forward.
Innovating in NFTs and Real Estate: the Baby Parcel will provide a safe environment to be used as a proving ground for concepts that are relevant for Big Parcel execution (for example: land token experimentation, NFT transfer of property rights, potential Harberger experimentation, NFT design and execution, etc)
“Tuition” - The Baby Parcel will be the most important learning experience yet for CityDAO. CityDAO will have the opportunity to obtain intel / insight into the overall process without creating a “bet the DAO” situation as will be the case by the time we wish to move forward with the Big Parcel. For a legitimately minimal expense, CityDAO can find out what does - and does not - work with respect to creating a land token standard and using NFTs to allocate property rights. Whatever CityDAO learns from the Baby Parcel, it will be money well spent for the collective direction of the DAO and our mission.
Financial Considerations - Treasury Impact. The project team requests $9,999 offramped to the CityDAO bank account upon passage of this proposal for Parcel acquisition and legal costs. Any unused funds will be returned. This represents around 0.4% of our treasury.
Process Flow/Community Touch Points: a) This CIP-102 will be put up to Forum and then Snapshot for approval by the Community through governance.
b) If approved, the Community will be asked for a temp check “taste and preferences” vote (through Discord or less formal means than Snapshot) from between 3-5 selected parcels around 5 acres (For example: https://www.realtor.com/realestateandhomes-detail/Ll-9th-St-Lot-10_Blanca_CO_81123_M90319-30673 7; https://www.realtor.com/realestateandhomes-detail/7-Sixth-St_Blanca_CO_81123_M91246-07855 1; https://www.realtor.com/realestateandhomes-detail/Estrella-Rd-Lot-11_Blanca_CO_81123_M93297-21676 4).
c) After the vote, the Project Team will offramp fiat for the purchase, closing costs, and 10 years of approximate insurance and taxes, along with a budget provision for 10% of the purchase price to be used for other operating expenses (to be held in an interest-bearing account with the intent of finding ways to pay such expenses in crypto and potentially automate such processes)
d) The Project Team will consummate the transaction using an appropriate legal mechanism, like a wholly-owned special purpose vehicle (“SPV”) incorporated and designed to handle the liabilities and related issues of purchase and subsequent operation. CityDAO will fund the SPV’s treasury with the funds needed to consummate the transaction.
e) Once acquired, the Project Team would commence meetings with the Community to build momentum for how to use the Property in the short run. The intended short term goal will be to use NFTs and/or a token-land standard to transfer as many property rights to holders as possible without creating legal risk or running afoul of the law of course. We intend to prove-out concepts using an MVP model that will be instrumental to execution on the larger vision with the Big Parcel.