Continuing my last post - transitional development. The operations model is in finalization. Just one question confused me at this point - Is buyer of a property my profit point in transitional development?
Frankly, this question came from one of my client who spun my mind when he said "Shailendra, I do not want my REAL profit from people who buy in my township." Although, he meant to make a buck from collecting dividends, I still got stuck with the question when I am sitting to finalize my operational model.
One - I plan seriously to make this kind of development my goal, Two - I truly believe why a property buyer in such a development be shelling out more than 'just affordable' profits.
Actually, a transitional development is through enrichment of the buyer or user of the developed facilities/ infrastructure. What can be seen as profits is dividend from second level ventures. The efforts put in to create facilities/ infrastructure is a capital cost of the transitional business. To make business viable, we need to create surplus income from these facility development. Hence it is correct to collect the profits 'just affordable' at all levels of development. Now, this is actually smart. Through governance you create a development that is growing communities who generate commerce. And that too, at all cost recovered. This means you have a business platform ready without any money held up.
Smart City connection to this model is very simple - this is Smart. Having all the functions carrying out smart ways, technology diffusion, automation etc. etc. I really don't think this is a smart city. I not describing Sensible at all. Smart has to be sustainable. Smart has to Give technology and not Take. Smart has to live happily and not only Conveniently. Smart is using resources more productively. Smart city need not attract people, it needs to Generate Smart People.
No Smart City can exist without generating smart people through - education, entrepreneurial support, commerce center, business support infrastructure, vocational training centers and, platforms that makes entrepreneurs to grow and support others to grow. I believe only such smart cities can be worth developing.
All the profit making could be gyrating around this activity and, dividends of new business ventures could be the profits. Facilitation is more appropriate word. Developer has the population that are more potent customer of his whom he can facilitate and ensure a dividend out of it. This can be called 'development ke saath bhi, development ke baad bhi'. Sorry, could not resist picking up that line from somewhere.
