Example 2.3-1 (Urban Renewal Model)

Example 2.3-1 (Urban Renewal Model)
The city of Erstville is faced with a severe budget shortage. Seeking a long-term solution, the city
council votes to improve the tax base by condemning an inner-city housing area and replacing it
with a modern development.
The project involves two phases: (1) demolishing substandard houses to provide land for
the new development, and (2) building the new development. The following is a summary of the
situation.
1. As many as 300 substandard houses can be demolished. Each house occupies a 25-acre
lot. The cost of demolishing a condemned house is $2000.
2. Lot sizes for new single-, double-, triple-, and quadruple-family homes (units) are .18, .28,
A, and.5 acre, respectively. Streets, open space, and utility easements account for 15% of
available acreage.
3. In the new development the triple and quadruple units account for at least 25% of the
total. Single units must be at least 20% of all units and double units at least 10%.
4. TIle tax levied per unit for single, double, triple, and quadruple units is $1,000, $1,900,
$2,700, and $3,400, respectively.
5. The construction cost per unit for single-, double-, triple-, and quadruple- family homes is
$50,000, $70,000, $130,000, and $160,000, respectively. Financing through a local bank can
amount to a maximum of $15 million.
How many units of each type should be constructed to maximize tax collection?

ผลลัพธ์ (อังกฤษ) 2:

Example 2.3-1 (Urban Renewal Model)
The City of Erstville is faced with a severe shortage Budget. Seeking a long-term Solution, The City
Council votes to Improve The Tax Base by condemning an Inner-City Housing Area and Replacing it
with a Modern Development.
The project involves Two phases: (1) demolishing substandard houses to provide Land for
The New. development, and (2) building the new development. The following is a Summary of The
situation.
1. As many as 300 substandard houses can be demolished. Each House occupies a 25-acre
Lot. The Cost of demolishing a condemned House is $ 2000.
2. Lot sizes for New single, double, triple-, and quadruple-Family Homes (units) are .18, .28,
A, And.5 acre, respectively. Streets, Open Space, and Utility easements account for 15% of
Available acreage.
3. The New Development in The triple and quadruple units account for at least 25% of The
total. Single units must be at least 20% of all units and double units at least 10%.
4. TILE Tax levied Per Unit for single, double, triple, and quadruple units is $ 1,000, $ 1,900,
$ 2,700, and $ 3,400, respectively.
5. The Construction Cost Per Unit for single, double, triple-, and Quadruple- Family Homes is
$ 50,000, $ 70,000, $ 130,000, and $ 160,000, respectively. Financing Through a Local Bank Can
amount to a Maximum of $ 15 million.
How many units of each type should be constructed to Maximize Tax Collection?