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MSU I. An Nfinnativa Action/Equal Opponunny Inflation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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PLANNING A MODERN MOBILE HOME COMMUNITY

By
H. Robert Kull Jr.

A THESIS

Submitted to the School of Hotel, Restaurant and
Institutional Management of Michigan State University
of Agriculture and Applied Science in

partial fulfillment of the
requirements for the

degree of

MASTER OF ARTS _.

1956

TABLE OF CONTENTS

CHAPTER PAGE

I.INTRODUCTION.................... 1
II. SITE SELECTION AND ACQUISITION . . . . . . . . . . . 13
III. REGULATIONS GOVERNING CONSTRUCTION, LICENSING
ANDOPERATION.............. 31
Iv. DEVEIOPNENTOFTHESITE b1
v. ESTIMATED CAPITAL AND OPERATING BUDGET . . . . . . . 6h
VLOPERATINGPLANS.................. 9O
VILCONCLUSIONS....................102
BIBLIOGRAPHY....................106

LIST OF TABLES

TABLE PAGE

I. METROPOLITAN LANSING RETAIL SALES 1952-1953 COMPARISON 18
II. MAJOR FIX. APPLIANCES IN THE MOBILE HOME . . . . . . . 53
III. ESTIIATEDCAPITALBUDGET 66

Iv. ETDF‘ATm OERATING BUDGET O O O O O O O O O O O O O O 73

LIST OF FIGURES

FIGURE

1.
2.
3.
b.

m0 ”RT! 3 ITE O O O O O O O O O O O O O O O O 0

AVERAGE 2h HOIR TRAFFIC FLOW — CITY
DESIGN FOR A NOBILE HOMES PARK . .
TIPICALho BI60POOTLOT . . . . .
OFFICEBUILDING. . . . . . . . . .
OFFICE BUILDING FLOOR PLAN . . . .
UTILITI BUILDING FIDOR PLAN . . . .

OF LANSING

PAGE

19
113

116
be
SO

CHAPTER I

INTRODUCTION

History of the Development of the Mobile Heme Park Business

 

There is little information available that would reveal an accurate
history of the mobile home park operating business prior to world war
II. However, the beginning of park operations did follow by several
years the inception of the manufacture of mobile homes. As early as
1933 the trailer coach industry consisted of a large, but unknown,
number of relatively small producers.1 By 1936, trailer manufacturing
was reported to be the fastest growing industry in the United States.2
Nevertheless, most of the trailers were homemade strictures. One casual
observer stated that 2 out of 3 trailer coaches encountered on the roads

had apparently been built in somebody's back yard.3

Prior to 19hl, trailer coaches were sold to three classes of buyers:
those individuals who wanted them for vacation purposes, those who were
retired, and those whose work made it necessary for them to change

their place of residence frequently. The largest number of sales in

the 19303 were to those who used their trailers during vacations or for
'week-end camping trips. The Mobile Home Manufacturers Association, the
foremost trade association in the industry, reports that in 1937 Pur-
chases for vacation use accounted for 50 percent of the industry's total
sales of $17,000,000. Sales to retired individuals totaled $5,950,000,
while purchases by people engaged in migratory occupations amounted to

32,950,000.

2
It was during this period that some parks came into existence. Gener—
ally they were very poorly equipped and maintained. Although rates
were moderate, many provided little more than a small plot of ground
on which to park. Because many communities lacked proper ordinances
with respect to trailer parks, some park operators failed to supply
such things as electric connections and toilet facilities. There were
few parks of any consequence even along the Atlantic seaboard with the
exception of Florida. The attitude of many trailerites was expressed
by one traveler who stated, "It was better to pull up at the side of
the road, ask permission from a farmer to stop overnight on his lot,
or to spend the night in back of a gasoline station, than to stop at

h

a so-called trailer camp."

The War Years

 

The war years brought about a significant new market development due
to the housing needs of defense workers. It was this group of people

who finally made the park operating business a necessity and a reality.

During l9h0 our nation was equipping itself for a state of war prepared-
ness. Factories for the production of war materials were built, old
plants were reactivated. Decisions for their location were based upon
the availability of raw materials, production components, and trans-
portation. Less consideration was given to the availability of labor,
and thus it was that very serious housing problems arose during this
defense build-up. The problem was three-fold. The importation of fac-
tory construction workers sometimes doubled the population of the con—

struction area. The influx of operating employees later aggravated

3
housing shortages. There was a lack of suitable living facilities near

military installations also.

The National Housing Agency, a wartime governmental agency, recognized
the seriousness of this situation. They saw the use of trailer homes

as a partial answer for several reasons: Trailer coaches would not
leave ghost towns like more permanent construction.g Mobile homes could
be manufactured more rapidly, and could be constructed largely by elder-
ly wood workers who could not, or were unwilling to assume more active
roles in the war effort. On-site housing construction required more

physically able men.

Unfortunately for the mobile home business, this housing, undertaken

as a defense measure, was substandard in many ways. Modern trailer
homes are vastly different from the temporary on-site construction of
that time. Because manufacturers had to eliminate or reduce the use
of critical materials, wood chassis were substituted for steel, wiring
was eliminated by 75 percent, the use of plywood was minimized and sub-
standard roof covering materials were used. In spite of their disad-
vantages, trailers satisfied the basic shelter requirements of many

servicemen and defense workers.6

After the war

 

Mobile home sales Jumped Sharply after the war. When returning service-
men created a housing demand, the high construction cost caused a large
number to investigate mobile home living. ‘With many previously criti—
cal materials being made available to manufacturers, coaches of greater

Size that were far more attractive and livable were produced. As a

h

result, the number of manufacturers doubled while the number of dealers

quadrupled between the years of 19kg and 1951.7

The 38,000 trailers bought by the government during the war years were
disposed of through gifts to colleges and universities for the housing
of veterans. In some instances they were rented by the government.
Only a small remainder were sold by sealed bid. The priority of this
disposition was probably a recognition of manufacturer's request that
the government not resell these trailers less the postwar market become

denoralized.

Today, most mobile homes are to be found in mobile home parks, though
many are not so located. Near production centers and universities
many'mobile dwellings can be seen on vacant lots, in rural fields, or
beside conventional homes. These are usually areas where local ordinan-
ces prevent prospective operators from providing an adequate number of
sites. In these crowded areas, park operators are in a position to be
more discriminating in their choice of tenants, hence the better trail-
ers find their way into parks. The poorer ones are forced to seek
accommodations along highways and other places where they are open to

an ever critical public.

Park operators today are weakly organized. There is no national organ—
ization, hence there is no accurate tabulation of the number of parks
in existance. Industry spokesmen have placed the number of United
States trailer dwellers at 2,000,000 and the parks at 12,000. Resort
areas account for the highest concentration. Florida has nearly 1,100,
while over 2,000 are located in California. Many parks are located

in close proximity to highly industrialized areas.8

Modern Trends in the Industry

 

The mobile home industry has three component parts including the manu-
facturing, dealership and park operating phases of the industry. 80
dependent is each upon the other that the consideration of modern trends
in park operations alone would develop an incomplete picture. Progress-
ive ideas implemented by the manufacturers almost invariably are found

to be a benefit to park operators. This is true of dealers also.

Today the crowded parks with their undersized lots and substandard facil-
ities, represent the weakestphase of the industry. Anything park oper-
ators do to improve their own facilities most assuredly strengthens

the industry as a whole.

Wbrk of the Mobile Home Manufacturers Association

For some years the Mobile Heme Manufacturers Association has been the
foremost trade association in the industry. It has recently presented
Michigan State University with the major part of a monetary grant to be
used in establishing a mobile home educational program. The course is
to be conducted within the Department of Forest Products. Students are
now enrolled in this program which will begin formally in the fall term
of 1956. A student may major in one of the three phases of'the indus-
try. Also at Michigan State university, the first national semi-annual
mobile homes workshop and conference was held April 9 through 11, 1956.
Manufacturers, dealers, and park operators attended sessions that were
pertinent to their interests. The park operators sessions dealt with
subjects of park planning, financing, construction, operation and.main—

tenance.

In order to encourage the construction of more and better mobile home
parks, the park division of the association offers free to prospective
operators, complete park planning kits containing blueprints of sugges-
ted plot layouts and an outline of construction procedures. To supple—
ment this service, field men from the association provide advice about
financing and legislative problems. This trade organization has pub-
lished books, and also prints a park directory every other year that
serves as a guide to the better parks. The parks are graded by an in-
spection team and those meeting minimum standards of attractiveness and
completeness of facilities are listed. Those that meet designated
higher standards are listed as gold star parks. 0f the country's
12,000 parks, over 5,000 are listed in this book. It is felt by the
Mobile Home Manufacturers Association that inspection teams currently
grading parks will help motivate park operators to up-grade their

facilities so that they will qualify fer a listing in the guide.

Collectively, manufacturers through their trade associations, sponsor
yearly shows held in large cities in different geographic areas. Most
prewar trailer exhibits were adjuncts to automobile and sports equip—
ment shows.9 These shows were held at the automobile dealers pleasure
during the fall months and were fbund to be undesirable because of the
seasonal market of the md>ile home. Manufacturers found their time was
more economically spent if they could devote their maximum energies to
full production during the high summer sales months and make time con-
suming model changes during the slack months. As a result, new models
were recently brought out in the spring just before the high sales

months.

7
One modern trend of particular note is the re-naming of the Mobile Home
Manufacturers Association. Fbrmerly this association was called the
Trailer Coach Manufacturers Association. Recognizing the nature of its
markets today, the industry has tried to remove the nomad stigma that
was attached to trailer dwellers of some years ago. Mobile home courts
also have been renamed from time to time by the industry. The first
term "trailer camp" properly suggested a facility for transients. Later,
a more permanent connotation was felt to be desirable, hence trailer
camp evolved into trailer park and more recently, trailer park to mobile
home court. One industry spokesman offered the term "mobile home com-
munity" as being the terminology most beneficial to the industry in the

future.10

Wbrk of the Mobilehome Dealers National Association

Many mobile home deakerships are held by park operators, yet the efforts
of the Mbbilehome Dealers National Association indirectly benefits all
park Operators. Through the promotion of their product they have in-
creased the demand and sale of mobile homes to a point where competent

park operators need not fear low occupancy.

This dealers association has sponsored a cOOperative service plan where-
by dealers repair mobile dwellings for each other. This is a service

that sells mobile homes thus keeping park occupancy high.

The association shared with the Mobile Home Manufacturers Association

in the $h5,000 monetary grant to Michigan State university.

@brk_of the Mobile Heme Park Operators

 

Mobile homes in recent years have become larger in every dimension.

Some are 55 feet long. Some have a bedroom and bath upstairs, while
others expand their width accordion fashion after parking. Trailers of
10 foot widths are replacing the "eight-fboters" in areas where it is
legal to move them. Mbre facilities are provided in these homes. These
facilities require more gas, electricity, water and other services.
Although these advancements have produced a hardship for many operators,
the net effect has been a realization that better parks are in greatest
demand and so park operators have been building more generously. Re-

cently'many have had to place one trailer on two lots.

Statement of the Problem

 

The author wishes to determine the feasibility of developing and opera—
ting a mobile home park in the Lansing, Michigan area. This problem
involves an investigation of the site selection; regulations governing
the construction, licensing and operation of such an enterprise; the
design and layout of a mObile home park; an estimate of capital costs

involved and an operating plan with a projected budget.

After talking with numerous people connected with this business in the
Lansing area, a former mobile home park operator in this locale was
contacted. He had discontinued his business because he could.not
economically alter the facilities he owned to satisfy the changing de-
mands posed by mObile home living. At the time of the author's inter-

view, in the Spring of 1946, this man had sold his park and had an

option to purchase a parcel of land to be developed later. He wanted
to investigate the probable success which he could expect in an opera—
tion of approximately fifty or sixty spaces on the property under con-
sideration; what construction, fixtures and equipment would be required;
and what consideration must be made before, during and after construc-
tion with the thought in mind of future expansion. He wanted to ascer—
tain what his capital and operating expenses would be and what operating
procedures to use. In short, he wanted the author's considerations and
recommendations regarding these matters. An attempt to answer these

problems will be made in this thesis.

Procedure

Determining Profitability

 

To determine the financial success that could be realized from a fifty
or sixty space operation, it was necessary to find the local demand for
mobile home living. This was done through a market analysis which in—
volved securing statistical data and interviewing persons connected with
this field. From this demand, the author developed an estimate of the
degree to which demand is being satisfied and arrived at a net potential
from which business would come. To determine probable financial success,
it was also necessary to consider the cost of construction. These fig-
ures were obtained from contractors and park suppliers in Lansing,
Detroit and.Chicago. Operating expense information was salient to the
conclusion. This data was supplied by the party interested in the

prooerty who, from past experience, was familiar with park operation.

10
The author was assured that financing would not have to be a considera-
tion, but the investigation of some plan for financing would prove bene-

ficial for future expansion.

At present, the property to be developed is not zoned for a.mdbile home
park. The writer recognizes that the Lansing Thwnship Zoning Board will
have to approve the site and that such an approval is a necessary step
in the development of the site. It was not practical to apply fer the
rezoning of this site at the time this material was prepared. The
assumption will therefore be made, that the property can be rezoned for

the construction and operation of a mobile home park.

Ascertaining Construction Requirements

 

The prospective operator of the proposed park conveyed his thoughts on
what the park should contain by way of facilities. These thoughts were
based on past experience and careful consideration. From the informa-
tion obtained, it was possible to design plans fer the site, ascertain
construction costs, and consider construction details necessary for a

desirable park.

Although the most accurate method of determining construction cost to
the property owner would have been to accept bids on the work to be
done, this was found to be inadvisable at this point. Much of the in-
fbrmation about park construction and cost was obtained from the First

National Semi-Annual Mobile Homes Workshop and Conference.11

Other
information was acquired from the Park Planning Division of the Mobile

Home Manufacturers Association. Most, however, was obtained from con-

tractors in the Lansing locale.

11

Drafting an Operating Procedure

 

The author conducted interviews with tenants of local courts to deter-
mine which regulations imposed by their operators were considered good
and which ones were not. Interviews with operators revealed regulations
that were necessary and meaningful. From the suggestions of many, a

standard set of rules and.regulations were drafted.

Because promotion has never been necessary in the Lansing area, sugges-
tions for effective advertising were considered only in passing. Howe

ever, the problem of park acceptance by the neighboring communities was
and is a real one. Several thoughts brought out at the recent workshop,

found beneficial elsewhere, were incorporated.

12

FOOTNOTES - CHAPTER I

1M’eloan, Taylor W. Mobile Homes: The Growth and Business Practices
of the Industry. Richard D. Irwin, Inc., Homewood, Illinois. 193D.
p. 3-h.

2Anonymous. "More and More Trailers," The Literary Digest. 120
(April 11, 1936). p. 111.

3Anonymous. "Trailer Industry," The Architectural Record. 80
(August 1936). p. 161.

hAnonymous. "Trailer Camps and Trailer People," Harper's Maga-
zine. 175 (June 1937). p. 67.

 

 

 

 

gAnonymous. "Homes on Wheels," gusiness week. (December 7, 19b0).
p. h6.

éleloan, 22. 313., p. 1h.

7Anonymous. "Busy Trailer Manufacturers Wait Defense Housing Callsfl'
Business week. (June 23, 1951). p. 98.

 

8M's-loan, ggf‘git., p. 30.
91bido, p. 670

1OLemke, R. L. "Park Planning-Utilization of Site." iobile Homes
Wbrkshop and Conference held at Michigan State university, East Lansing,
Michigan. (unpublished Report.) April 9, 1956.

11Ibid.

CHAPTER II

SITE SELECTION 1WD ACOUISITION

Proposed Location of the Site

 

The location of the proposed park is on a 33 acre parcel of land between
the north city limits of Lansing and the Ingham County line. Figure 1:
on page 1h, shows the boundaries of the park within the parcel of land.
Mbre specifically, the prooerty begins at a point 6b3.0 feet north
89°h6' east from the northwest corner of section 3, township h north,
range 2 west, Lansing Township, Ingham County, Michigan, thence south
695.0 feet, thence north 89°Sl' east 150.0 feet, thence south 168.0
feet, thence north 89°Sl' east 2h5.53 feet, thence south 3b.19 feet,
thence north 89°37' east 660.0 feet, thence south 330.0 feet, thence
north 89°37' east 892.6 feet to the north south quarter line, thence
north 0005'30" west 122h.2 feet to north line of section 3, thence
south 89°h6' west 72h.6 feet, thence south h95.0 feet, thence south
89°h6"west 792.0 feet, thence north 231.0 feet, thence south 890h6'
west 165.0 feet, thence north 26h.0 feet to the north line of the sec-
tion, thence south 89°h6' west 26h.0 feet to the place of beginning,
the north 33.0 feet of the west 1221.0 feet being reserved for public

highway purposes.1

 

 

 

 

15

lensing - the City

 

Lansing, the capitol city of Michigan, is in the northwest corner of
Ingham County 85 miles northwest of Detroit, in the richest agricultural

and industrial section of the penninsula.2

Lansing is one of the leading convention cities of Michigan and is a
stepping place fer tourists on their way to the playgrounds of Northern
Michigan. lensing has one national and two state banks, all members of
the Federal Reserve System, a strong trust company and three strong
building and loan companies. It has an excellent airport with airline

connections to all parts of the United States.

The electric light and power system serving the community is municipally
owned and there is an abundant natural gas supply for all uses. There
is a modern sewage disposal plant, and a fine water conditioning plant
with an average daily pumpage of over 10 million gallons. The park
system of Lansing comprises 1,300 acres and there are four municipal

golf courses, 28 playfields, a municipal swimming pool and a zoo.

The community is served by one daily newspaper, the Lansing State
Journal, and by three radio stations, one being owned and operated by
Michigan State university and the other two commercially. All three

are also television stations.

The city is administered on a full time basis by a mayor and a city
council. Its public school system includes 26 elementary, h junior

high and 3 senior high schools.

16
While the political significance of Lansing has contributed to the
development of the city, its size and fame are due largely to the many

industries located there.3

Industry

The present position of the city as an industrial center may be attri-
buted to the development of the automobile and its allied industries.
Employees of Oldsmobile Division of General Motors Corporation, Mbtor
Wheel Corporation, Reo Mbtors Incorporated, Duplex Truck Company, Fisher
Body Corporations and the John Bean Manufacturing Company make up a con-
siderable percentage of the 3h,000 industrially employed in Lansing.
However, the community's stability is not solely dependent upon the
automotive industry. Lansing is a city of diversified industry. There
are more than 200 manufacturers. The city's six drop fbrge factories
are responsible fer more than 11 percent of all the fergings produced
annually in the United States.b Other products thatare manufactured in
the city are trailers, tractors, lawn mowers, tools and dies, tents and
awnings, chemicals, beet sugar and flour. Lansing is therbanking and
shopping center for Central Michigan. Weekly earnings in l95h for
industrial workers in Ingham County averaged $9h.5h a week. This was

the second highest in Michigan that year.5

Retail Sales

 

Retail sales in the metropolitan lensing area were up 1h percent in
1953 over the previous year. This may be compared with national figures

that show an increase of h percent over the same period. This 1h percent

17
gain is not attributable to the increase of a select group of outlets,
but rather a gain of all, save one, of the 27 types of outlets repre-
senting total sales in the market area. It is felt thatsuch gains are
more meaningful in determining the success of a prospective business
than would be fewer gains of greater proportions. These facts, shown
in Table 1, page 18, indicate an upward trend in business that should be

encouraging for any prospective park operation.6

Population

 

In the 1950 census, Lansing with a population of 92,109 was ranked 121
among united States cities. This population represented an increase of
17 percent over 1910,7 while the county of Ingham increased 32.5 percent

8

over the same period. This county growth was unequaled in the state.
In l95b the estimated population of the city was 100,672 which repre-
sented an increase of 9.3 percent in 3.5 years. The county showed an

increase of 12.7 percent during this same period.9 Clearly, the rapid

growth of Lansing is continuing.

Traffic Survey

 

Federal and state highways converge in Lansing from all directions.
These highways carry an average of well over 130,000 vehicles over a
2h hour period at city limit points. An increase in flow of 5 percent
has occurred during the last two years. Figure 2, page 19, illustrates
the difference at count points. These facts would indicate both com-

munity stability and growth.

 

 

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20
Because an increase in traffic flow reflects the community's importance
to other cities and surrounding areas, it is felt that any increase in
the number of vehicles coming into and leaving the city enhances the
mobile home park business. But the author believes that a mobile home
park no longer need be on a busy thoroughfare to prosper. The perman-
ence attached to such living makes this so. Thepark operator is not
catering to the transient passing through the city. If such were the
case, then surely the site along a main highway would be the better
location. Instead, today, many people seek out the park that is quiet
and even remote. With respect to location, they look fer a "residential"

atmosphere.

One of Lansing's newer parks, Eifert Road Trailer Park, was built be-
side a little traveled road. The prOprietor of this park has all his

spaces occupied with a seemingly select group of newer trailers.

U.S. 27 is the highway that serves the pronosed park site. From the
foregoing discussion, it is not disturbing to note that the traffic
flow of this trunk line has decreased by 3,500 vehicles per 2h hour
period, or nearly 19 percent. This could be interpreted to mean 19

percent less traffic noise for tenants to hear and.19 percent less

traffic with which to cope when going to and from work and shopping.
Currently, U.S. 27 is the only means of egress from Fredrick Street,

the street leading directly into the park.

Michigan State University

 

Michigan State University is located just east of the city limits of

Lansing. There were over 17,000 students enrolled at this state

21
supported institution during Fall term 1955. More than 150,000 persons
attend over h50 conferences and special courses of the Continuing Educa-
tion program of the University each year. The university employs over
h,000 individuals including faculty, administrative and maintenance per-

sonnel.10

The growth of the Uhiversity has been rapid during recent years and the
projected growth pattern is expected to resemble that of the past.
Estimates by University officials place the enrollment of the school at

25,000 in 1965.11

Dr. John Hannah, president of the University, said
that these estimates compiled by the housing office were extremely con-
servative. He thought enrollment would approximate 25,000 as early as

1960 O

Competing Parks in the Area

 

Present Park Facilities

 

After a personal investigation, the author found that every park opera-
tor in the Lansing area had a waiting list which reflects a demand that
is not being met. Even when vacancies occur, people with to and h5 foot
coaches are turned away because many lots are not large enough to accom-
modate them. Michigan law permits an individual lot of as little as

700 square feet, though newly constructed lots must be 900 square feet.12
A 700 square foot lot suggests a space measuring 20 feet by 35 feet.
This would be wholly inadequate for a great many of the newer mobile
homes. There are some 55 foot models for sale today. In 19h9 the maxi-

mum trailer length was 30 feet. In the last three years, over 70 percent

22
of the mobile homes constructed exceeded 30 feet in length.13 The older
parks in the county have had to limit their tenants to the older, small
trailers, or decrease their unit capacity by making one lot out of two
in order to accommodate trailers over35 feet in length. Combining lots
often results in a poor utilization of space, thus operators are reluc-
tant to do so fer they have enjoyed a seller's market locally for years
and have never felt the need fer incurring this. Understandably the 30
foot trailers will wear out. They will be replaced by larger trailers
and there will be fewer accommodations for them than before in the Lan-
sing locality. A recent nationdwide survey conducted for a magazine re-
vealed that operators felt the building of small lots to be their biggest
construction mistake.1h Although some courts have been improved during
the last six months, tenants continue to express their desire for larger

lots.

Several park operators in this area provide laundry facilities for thehr
tenants. Observation of these laundries reveals that they are, for the
most part, inadequate either with respect to the quality or the amount
of equipment available. Some parks have no concrete patios; most have

no recreational facilities.

It is felt among local mobile home dealers that the lensing area could
safely use 1,000 more trailer spaces during each of the next two years.
These opinions are based on estimates of the number of lost sales, plus
a knowledge that people who purchase mobile homes usually plan to live

15

in them close to the area of purchase.

In 1950 there were 1,368 mobile homes parked in Ingham County.l6 Of

these, 568 were within parks,17 leaving 800 mobile homes occupied

23
outside of parks in the county. unapproved parking outside of licensed
parks has increased by more than 300 sites in the last five years.18

These 1,100 trailerites represent an immediate market potential.

Waiting Lists

 

Park proprietors maintain waiting lists of prospective tenants after
their spaces are totally occupied. Their purpose is to assure these

prospective customers seniority when a vacancy does occur in their park.

It is true that names on a list represent only prospective customers be-
cause lot seekers place their names with many operators and.are eventu—
ally accommodated by only one. Despite this, operators do find there is
a positive correlation between the number of people on their waiting

lists and the assurance of full occupancy during subsequent months. One
operator claimed that he might expect five or six people on his waiting

list of 26 to be willing to move into his park at any one time.

Seasonality

 

Because of the diversification of industry in Lansing, seasonality does
not affect park occupancy. Interviews with local operators indicate

that it remains close to 100 percent the year around.

The situation is somewhat different in East Lansing. Knowing that near—
ly 90 percent of the mobile home dwellers are either students of Michi—
gan State Uhiversity or have some direct affiliation with the school, it
is conceivable that during the university's summer recess, there would

be a slack period of occupancy, but such is not the case. Many student

2h
trailerites seek employment in the Lansing area during the summer and
so maintain the same residence. Park operators must operate on a
"first come, first serve" basis and can give no assurance that a lot
will later be available if released for the Summer. These students
have two alternatives. One is to hold the lot by paying three month's
rent while they are absent. The other is to sub-let for the summer.
With these arrangements, year around occupancy in the East Lansing area

is also very close to 100 percent.19

Operators' Optimism

 

Park operators' optimism is usually a measure for determining the future
health of their business. This is because their concern for the future
is not based on wishful thinking or slanted preconceptions, but on an
earnest attempt to secure facts and make accurate forecasts about the
anticipated.market. Operators in Lansing talk of the future demand for
mobile home sites in a tone of optimism. They feel that many people
parked outside of parks in the county will want to enter parks, espe-
cially since the adoption of a county regulation, effective June 1, 1955:
which requires permits for occupancy of trailer coaches in Ingham County
outside of licensed parks.20 Only in parks can many of these people
meet requirements. Additional trailer parks for handling at least

bOO more trailers are needed for trailers already occupied outside of

parks that may not qualify for permits to stay where they are.21

Lansing operators know that most of their occupants are employed in in-
dustry whkzh was shown to be sustaining because of diversification in

Lansing. They know that more and more industrial workers are disposed

25
to mobile home living both locally and nationally. A study sponsored by
the Mobile Home Manufacturers Association revealed that nearly 50 per-
cent of mobile home owners in 1953 were either skilled craftsmen or
laborers, 15 percent were members of the armed forces, and 10 percent
were retired people. A number of other occupational groups accounted
for the balance of the sample.22 Industry spokesmen state that half of
all trailer sales in 1937 were made to vacationers and campers. Retired
people bought 35 percent of the units and migratory workers accounted
for the remaining 15 percent.23 These facts, illustrating both the per-
manence attached to mobile home living today and the greater number of
persons industrially employed who live in this way, are assurance fer

local operators interested in future operations in Lansing.

Ingham County's two largest parks have a total of 255 spaces, and are
located east of Michigan State University. They comprise a total of

35 percent of the licensed park sites in the county. The optimism of
future business by these operators is based on the previously stated
fact that 90 percent of their occupants are either students of the
University or have some direct affiliation with the school. The school,

as has been shown, is growing rapidly.

The Specific location

 

The site earlier described was feund to have several objectionable fea-
tures. It is believed that many will be corrected in time, some without

cost to the park operator.

26

The property is undesirably situated with respect to a city refuse area
which is unsightly and, at times, odorous. The actual place of refuse
deposit and incineration is approximately one—third of a mile from the
property. Because the dump is located south and east from the property,
prevailing winds from the northwest usually carry odors away from, rather
than toward the site. Fbrtunately, the city is planning to discontinue

the deposit of refuse here and intends to cover over the unsightliness.

Topography

 

In general, the topography of the land is suitable for the construction
anticipated. A major portion of the property has a gentle slope toward
the entrance, but the access road bisects a swamp that has a stand of
water the year around. This swamp would have to be closed in which
could easily be done with the dirt obtained from cutting down a steep
knoll just to the east of the proposed entrance. With this done, the
entire park site would have an approximate 6 degree fall.211 This is
considered desirable. The bottom of the fall will be below the city
sewer level at Fredrick Street and U.S. 27, thus necessitating the in-

stallation of a pump to lift waste to the required height.

5 Soil Conditions

 

The soil is glacial drift of sandly clay containing pebble and medium
sized boulders.25 Much of the soil about the knoll at the proposed en-
trance has eroded away. Grading will serve to rectify this temporarily,
but the condition indicates the need fer landscaping with appropriate

vegetation which will be necessary to hold the soil. Landscaping will

27
required a top soil dressing, as the present soil conditions will not

support the growth of grass and shrubs.

If the property had to have its own sewage disposal system involving a
run—off field, it is questionable that conditions would be satisfactory.
City sewers, as have been mentioned, will service the area so the major '
importance of determining soil conditions is in connection with the

landscaping.

Accessability

 

There are several schools relatively near the site where children of
tenants might attend. Gier Park Elementary School is one mile away.
Otto Junior High School is approximately the same distance. School
busses pick up high school students at Sheridan Road and U.S. 27, three
blocks from the park. The city bus line comes within four blocks of the
city limits on U.S. 27. This ston at Gier Street is 10 blocks from the
property, while another bus stops at the corner of Turner Street and

Sheridan Road, eight blocks away.

The two blocks north of Fredrick Street on U.S. 27 contain the following
businesses pertinent to prospective tenants: three gas stations, one
grocery store, one drug store, one barber shop, a mobile home sales
agency and a television sales and repair store. A super-market and an

outlying banking facility are located 1.5 miles to the south on U.S. 27.

28

Summation

Lansing appears to be a city of good potential for a mobile home commun-
ity. Within its limits are contained a diversification of industry and
a growing population. It lies within Michigan's agricultural belt and
within close proximity to a large, growing University. People engaged
in industry and students make up a large percentage of the mobile home
population in this area, and because of industrial expansion reflected
in a growing population and expanding enrollment at Michigan State Uni-

versity, there has been a shortage of licensed trailer spaces in parks.

Operators' comments about future business prospects are encouraging.
They even show a reluctance to improve facilities to meet competition
for they enjoy a seller's market without having to incur improvement

expenses o

Some unfavorable conditions exist with respect to the specific location.
It is the author's judgment that these obstacles will be remedied.in

time or can be overcome during construction phases of the operation.

29

FOOTNOTES - CHAPTER II

lWhipp Farm Agency, Lansing, Michigan. (Personal Interview.)
April 3, 1956.

2Americana Corporation. Encyclopedia Americana. Americana Corpora-
tion, Chicago. 1956. vol. 16. p. 736.

 

3Lansing Chamber of Commerce. The History of Lansing, Michigan.
Lansing Chamber of Commerce, Lansing, Michigan. 1955. p. U.

 

hResearch Bureau, National Advertising Department, Lansing State
Journal, Lansing, Michigan. Information compiled from the monthly
reports of the Michigan Department of Labor. 1953.

5Anonymous. "Lansing, Where Wages Are High," Sales Management:
The Magazine of Marketing. 7h (May 10, 1955). p. h39.

 

 

6Research Bureau. Infermation compiled from records of the State
Sales Tax Division. 1953.

7New York world Telegram Corporation. Wbrld Almanac. New York
werld Telegram Corporation, New Ybrk. 1956. p. 272.

 

amide) p0 2890

9Research Bureau. Information on county population compiled by
the bureau. 195h.

1°Ib1d.

 

11Foster, Emery 0., Michigan State university, East Lansing,
Michigan. (Personal Interview.) February 10, 1956.

”Michigan Department of Health. State of Michigan State Acts and
Rules and Regulations Related to Trailer Coach Parks. Michigan Depart-
ment or Health, Lansing, Michigan. (October 1955). p. 15.

 

 

13Anonymous. "President Signs FHA Park Financing Bill," Tragic:
Park Management. h:h (September 1955). p. 6.

 

1hvan Derwerker, R. J. "The Trailer-Court Sanitations Program of
the Public Health Service," Trailer Park Management. 1:1 (may 1953).
p. 6’19.

15Spokesman for Michigan Mobilehome Dealers Association, Lansing,
Michigan. (Personal Interview.) April 13, 1956.

16U.S. Census of Housing. Occupancy Characteristic, Type of Struc-
ture and Plumbing Facilities for Standard Metropolitan Areas: 1950.
U.S. Department of Commerce, washington. 1950. p. Hi. _—'

 

 

 

3O
17cosens, John J., Michigan Department of Health, Lansing, Michi-
gan. (Personal Interview.) April 5, 1956.

8
1 Shirley, Philip V., Ingham County Health Department, Lansing,
Michigan. (Personal Interview.) February 7, 1956.

19Tobin, A. J., Trailer Haven, East Lansing, Michigan. (Per-
sonal Interview.) February 8, 1956.

ZOShirley, 39. £2:-

ZlIbid.

 

22Meloan, Taylor w; Mobile Homes: The Growth and Business Prac-
tices of the Industry. Richard D. Irvin, Inc., Homewood,*Illifiois.
19511. p. 19.

231bid., p. 18.

ZbHulett, Stanley L., Lansing, Michigan. (Personal Interview.)
April 17’ 19%.

ZSByerlay, John 3., State Geological Survey, Lansing, Michigan.
(Personal Interview.) April 27, 1956.

CHAPTER III

REGULATIONS GOVERNING CONSTRUCTION, LICENSING AND OFfiRATION

Historically, there have been three state legislative acts in Michigan
that have governed the construction, licensing and operation of mobile
home parks. The first of these, Act h3 of the Public Acts of 1939, was
one of the initial state laws so enacted anywhere in the United States.1
This original law defining licensing and regulating the maintenance of
"house trailer camps" within the corporate limits of townships was
amended to require the licensing, regulation and inspection of all parks
by the State Health Commissionerslnd the payment of fees for occupied
sites to municipalities and school districts. This was Act 255 of the
Public Acts of 19h1. Act 52 of the Acts of 19b9 is the most recent

amendment to these two laws.2

In conformity with the requirements of the original law as amended, the
State Health Commissioner has promulgated rules and regulations govern-
ing the establishment, maintenance and operation of all parks. A com-
prehensive discussion of these acts is not within the scope of this
thesis. However, an attempt to outline the rules and regulations that
were designed to expedite the law will be made. These rules are
divided into three catagories, namely: General Provisions, Sanitation

Requirements and Surety Bond.

32

General Provisions

 

A description of the responsibility of the park attendant or caretaker
is presented, mentioning his duty to bring about compliance with the
provisions of the Act and his obligation to see that someone is always
in charge of the park. This regulation requires lots of at least 900
square feet with each trailer at least 10 feet from the nearest adjacent
site. Streets are required to be passable, reasonably dust proof, and
at least 30 feet wide if used for two-way traffic, or 20 feet wide if

used for one-way traffic.

Lighting facilities are discussed, stating that every part of the park
must be lighted at night and at least three foot candles of artifical

light should be provided on all walkways and driveways. Layout is con-
sidered with regard to walking distances from any trailer coach site to

the various public accommodations within the park.

The next group of rules point out that the proposed site must first be
approved by a representative of the Ingham County Health Department who
will determine if it is suitable fbr development with respect to land
contours, soil conditions and the location of unfavorable outside ele-
ments to the site. The initial inspection is valuable because advice
from the official may be incorporated into plans later to be approved by
his department. This official is very familiar with the law as it per-
tains to parks and is in a position to help the prospective park builder

avoid many construction mistakes.

Following the initial inspection, application must be made on the pre—

scribed form to the State Health Commissioner through the Ingham County

33
Health Department office. Also to be submitted with the application are
construction plans and specifications. If the plans are in full accord
‘with the park law, a-construction permit is issued and construction may

begin.

Next are regulations involving the licensing of the park. During con-
struction the Ingham County Health Officer will make periodical inspec-
tions of the work being done. He will determine if construction is pro-
ceeding in accord with approved plans.3 Request for final inspection is
made by the prosoective operator through the county official to the
Nichigan State Department of Health. Submitted with this request is a
$1,000 surety bond conditioned for the faithful performance of the pro-
visions of the Act, the applicable regulations and the payment of all
license fees provided for in the Act. Following this inspection and a
finding of satisfactory compliance with the Act and regulations, the

Michigan State Department of Health will issue a license for one year.

After the licensing regulations, the subject of the collection and dis-
tribution of monthly fees is treated. In the instance at hand, there
are both annual and monthly license fees to be paid by the park opera-
tor. The annual fee is collected by the Ingham County Health Department
and is a fee equal to $25 for each 10 acres, orfraction thereof, of land
to be used as a park. The prOposed park site is b.98 acres, thus a $25

fee must be paid.

The monthly fee is paid to the Lansing Township Treasurer in an amount
equal to $2.§0 per month, or major fraction thereof, for each occupied

trailer coach occupying space within the park.

3h
The general provisions continue by stating that each trailer coach park
shall be provided with a custodian's office. It enumerates the proce-
dure for the registration of occupants, mentioning that each trailer
coach occupant entering the park shall be assigned to a site, given a
copy of the park rules, and registered according to the prescribed form.
Registrations must include the name and address of every occupant of
each coach, the license number of all cars and coaches, the state issu-
ing such license, the date of entrance to the park, the number of site
to which assigned, and a statement indicating the exact location at
which the coach was last parked, the date of removal and the place to
'which the occupants declare a removal. This section also says that the
school board having jurisdiction may, through its officers, inspect and
visit the park for the purpose of examining the park operator's register
with reference to children of school age and examine the park with re-
spect to housing conditions of school age children, and with reference

to enforcing school attendance of these children.

A section on safety covers construction, installation and connection,
stating that all buildings and fixtures, appurtenances and equipment
installed within the park or any of its buildings must be done in a
safe manner and in accordance with all the building codes that may be
applicable. It further states that electrical outlets must be provided
but that no connected electric extension cord shall lie on the ground
or be suspended less than seven feet above sidewalks and pathways.

Extension cords shall be heavy-duty, rubber—covered cable.

Fire extinguishers of a type approved by the State Fire Marshal for use

at trailer coach parks shall be placed at locations within 200 feet of

35

each individual site. Bottled gas shall not be used at individual sites
unless properly commected by copper or other suitable metallic tubing.

No cylinder can be located in a coach or within five feet of a door.

A limit of 500 gallons of stored fuel oil is allowed on any one site.
Storage tanks are described as having to be made of not less than lb
guage galvanized or wrought iron or open hearth steel. All joints must
be welded, brazed or riveted. The tanks should be reinforced.with a
welded or riveted pad or flange where connections are made. A reference

is made to the State Fire Varshal for further information.

Another section of the general provisions deals with fecing the property.
This must be done if an owner or tenant of adjacent property demands it.
Suitable fencing must be not less than four feet or more than six feet

in height, constructed of woven wire or open metal or wood. Barbed wire

should not be used.

The last section of the general provisions deals with the responsibil—
ities of various municipal officials for inspecting the parks periodi-

cally and enfbrcing the regulations pertaining to parks.

Sanitation Requirements

 

The first major heading under sanitation requirements affixes upon the
State Health Commissioner the responsibility of providing licensees of
parks ‘with copies of all health rules and regulations. It is directed
that these rules and regulations be posted and protected in a conspicu—

ous place within the park by the park manager.

36
It is required that an adequate supply of water which has been approved
by the State Health Commissioner shall be provided at the park. At

least one water outlet furnishing a safe drinking supply must be located

within 300 feet of every individual trailer coach site.

When a municipal water supply is not available, the park water supply
must be obtained from pronerly constructed drilled or driven wells,
unless specific approval is obtained from the State Health Commissioner
for the use of another type of water supply. Such supplies shall be
located on the property to be licensed or on adjacent property owned or

controlled by the licensee.

Fortunately, the prOposed site will have the Lansing city water supply
as a source for its water, so many of the following rules and regulations
that pertain to wells are not relevant to this paper. These include
sections relating to the location and construction of drilled and driven
wells. Other sections deal with source of contamination, flooding and
drainage, minimum depth, suction pipes, casings, cylinders, power pumps,
pit and pump rooms, power pump room floors, unsafe water, storage reser-
voirs, water treatment plants and an engineering bulletin that may be

obtained for additional information.

Toilet, shower and lavatory accommodations and laundry facilities are
discussed. They must be located in a well constructed building having
good lighting, adequate ventilation and floors constructed of impervious
material sloped to adequate drains. All plumbing must comply with the
state plumbing code. Water flushed toilets and approved type urinals

must be provided. It is noteworthy at this point to relate the law in

37
part as it applies to the case at hand. "If a trailer coach park is
designed to accommodate only those trailer coaches eouipped with self—
contained sanitary facilities, a service building containing a minimum
of one toilet and lavatory for each sex and 310p disposal facilities
available to both sexes shall be provided."h This park is planned to
accommodate only those trailers that are modern in every respect, there—
fore a minimum amount of lavatory facilities need be provided. To in-
stall more invites poor coaches to the park and increases both initial

outlay for the facilities and the cost of maintenance.

Disposal of sewage and other water carried wastes, for purposes of dis-
cussion, is divided into three parts: type of sewage disposal system,
trailer coach sewer connections and septic tank disposal systems. In as
much as the park being planned will have available city sewers, the in-
volved details of sewage treatment are of minor importance. This sec—
tion does mention that all sewage and other water carried wastes must
be disposed of into a municipal sewage system whenever available. It
also states that each site must be provided with a sewer connection for
the combined liquid waste of each coach, and trapped below the frost
line. A water-tight connection from the trailer drain to the sewer
connection must be provided and back siphonage prevented. The law puts
the responsibility of making a proper connection upon the park operator

or owner.

Another point of law given interpretation involves slop pail and garbage
can cleaning facilities. Cans must be fly-proof and water-tight. They
must be emptied at least once every three days and must not be filled

to overflowing or allowed to become foul smelling or a breeding place

38

for flies. Garbage cans must be thoroughly cleaned each time after they
are emptied. All combustible material should be burned in an incinera-
tor which will insure complete combustion. Non-combustible materials
must be disposed of by dumping on a site well removed from the premises.

They must be stored in fly-proof, water—tight containers.

The duty of the operator in reporting persons who are affected with com-
municable diseases is outlined. Penalties are discussed with reference
to failure to comply with the provisions of the Act. Offenders shall be

punished with a fine not to exceed $100 and the costs of prosecution.

The next sections deal with undesirable practices. There must be no
animals or house pets allowed to run at large, no animal washing in any
building, no car washing that would be considered a slop creating prac—

tice.

Maintenance of facilities comprises the last section. The management of
the park must assume full responsibility for maintaining in good repair
all of the sanitary and safety appliances in the park. He must promptly
initiate such action as is necessary to prosecute or eject from the park
anyone who willfully damages these appliances or anyone who fails to

comply with the regulations of the Act.

Surety Bond

 

The regulations giving instructions for executing bond state that if
the principal in the bond is an individual, only his signature is re—

quired; if the principal conducts business under an assumed name,

39
signature should be by the assumed name and by the individual conducting
the business. In this event, a certified copy of the certificate of
business conducted under an assumed name filed in the county clerk's
office should be furnished. If the business is a co-partnership, signa—
ture may be by any co-partner with an attached certified copy of the
certificate of co-partnership issued by the county clerk. If the prin-
cipal is a corporation, the corporate name should be signed by an
authorized officer and the corporate seal attached. In all cases, a
certified copv of the power of attorney of the agent for the surety must
be attached and certified as continuing in full force and effect until

the date of the bond.

ho

FOOTNOTES - CHAPTER III

1Cosens, John J., Michigan Department of Health, Lansing, Michi-
gan. (Personal Interview.) April 27, l9§6.

2Michigan Department of Health. State of Michigan State Acts and
Regulations Relating to Trailer Coach Parks. Michigan Department of
Health, Lansing, Michigan. (October lQGST. p. 1.

3

 

 

Cosens, ‘22. cit.

24Michigan Department of Health, 23. 212., p. 28.

CHAPTER IV

DEVEIDPMENT OF THE SITE

The property at present will require relativelylittle clearing because
it has been used as farm land for several years. A small stand of trees
on low ground near the entrance will have to be removed. Although these
trees line both sides of the road in a manner now pleasing to the eye,
they are situated on ground so low that fill dirt placed about them
would bring their brances too close to the road for good appearance

and ease of egress and exit. A sign to be placed at the entrance of
the park would not be visible from U.S. 27 if these trees were to re-

main.

A considerable amount of grading will be necessary to fill in the swamp
section of the property and bring the grade profile of the land to five
or six degrees. Such a grade is beneficial because sewer lines must
have a fall and trenches dug for them on a grade may be of uniform depth

throughout the park. This grade also helps in running off surface water.

Site Layout

 

lot area for each mobile home, typically, is much smaller than for cus-
tomary single family detached homes. More compact development at higher
densities necessitates special planning to achieve livability at reason-
able costs. Though informal arrangements of'mobile home stands and

other facilities are desirable, a certain amount of unifbrm spacing

b2
becomes mandatory in the interest of construction economy. The sugges-
ted layout shown in Figures 3 and h, pages LB and hh, offers several
desirable features. First, the 30 degree site angle makes full use of
a narrow park site and allows ample space for three roads running the
length of the lot, wide sidewalks and sufficient parking spaces. With
the exception of corner lots, a unifbrm lot size of 2hOO square feet has
been maintained. Angle parking also permits a varied view from inside
the coach. The road may be seen from either the front or side windows.
Lineal frontage of each site is greater than on a rectangular lot of the

same length.

The suggested design is such that the rear of coaches do not abut each
other, but rather look out upon a naighbor's yard. It is doubtful that
any less formal layout will permit the location of 56 spaces and offer

the features just enumerated.

Each individual lot has about 560 square feet of concrete represented

in sidewalk, entrance walk, patio and runway. The runways are rein-
forced and are nearly 250 square feet in area. They are designed so
that coaches of either eight or ten foot width may be parked on any run-
way. Necessarily, the side of the coach having the door or doors must
be fixed with reference to the patio and entrance walk. Thus it is that
the runway on one side is narrow and on the other side wider to accom—
modate either width coach. The provision for either eventuality has
been made in a design which requires a minimum of reinforcing materials

and concrete.

 

 

 

 

 

 

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16
Office Building

 

The office building has been designed to have a.wide, low, modern ap-
pearance which will serve to give the prospective customer a desirable
first impression of the park. The building is only 3? feet in width,
but a marquee built across the park entrance and lapping over the roof
of the office brings the entire structure's width to 70 feet. Although
marquee and building could well have been constructed independently of
each other, the lapping of the marquee over the roof tends to unite the
two into one low structure. The height of the building is 10 feet while
the clearance under the marquee is 13 feet 6 inches, enough to accom-
modate the latest two-story coaches which are 12 feet 6 inches high.
Affixed to the roof of the marquee is a neon sign with the park's name.
Large block letter, three feet in height of double tube design will be
mounted on a metal box frame containing all electrical transformers and
connections. This will be affixed to the building by an angle iron
sign skeleton. It will elevate the lowest part of the sign from the
roof by two feet which is in keeping with the lensing city code. It

can be seen clearly all the wav from U.S. 27 at Fredrick Street.

The south and east sides of the buiLding will be made of an eight inch
light weight construction block. The front will be built of six inch
blocks with a limestone facing, while the other public viewed side will
be a six inch block with a brick veneer facing. Walls and ceiling will
be wet plaster constructed while the floor will have asphalt tile over
concrete. A built-uh pitch and gravel roof will be equipped with a

sump located above the lavatory plumbing stack.

h?
A parking skirt will be provided in front of the building and a lawn
approximately ZLS feet by 168 feet will flank either side of the road
near the office. Limestone facing on the front of the building and
appropriate shrubs and flowers will convey a feeling of warmth and hos—

pitality to park dwellers and visitors.

The office is located to allow anyone within to observe traffic entering
and leaving the park. The speed of vehicles, usually a problem within
parks, may be observed. Visitors arriving may be seen. A large plate
glass window makes up the whole west wall of the manager's office. The
top slopes out two feet from the base giving a modern effect and ser—

ving to deflect the lights from cars that are approaching the park.

Business with tenants is transacted théough a window between the hall
and the manager's office. This window allows the prOprietor an element
of privacy in that traffic within the room is minimized. The window

may be closed and locked after hours.

Mail is placed in the tenant's mailbox by the postman from inside the
office and is picked up by the tenant from the outside. This procedure
eliminates all mail traffic inside the building except for the postman
who will be provided wfl;h a key to the building. Such a procedure also
eliminates management responsibility for holding and distributing checks
'which arrive by mail as would have to be done if the boxes were open to

the public.

A parts room is located adjacent to the hall. Only those items will be
stocked which will be necessary to provide new arrivals with the various

couplings, adaptors and tubing to make the initial utility connections

cl.

3‘.

I
LLJ.

£19
at the coach site. Other needed parts may be obtained from J and M
Trailer Sales less than a block north of Fredrick Street on U.S. 27.
Trade magazines, park directories and carbon tetrachloride fire extin—
guishers will be stocked and offered for sale. Heat for the building
will be provided by a small oil fired, forced hot air furnace of the

General Electric or Sunbeam tvpe.

Utility Building

 

The utility building has been designed with the Specific thought of
having a facility which can be enlarged to accommodate anticipated park
expansion. Additional automatic washers, extractors and dryers can be
installed in the present space as needed. Their proposed placement is

indicated in Figure 7, page 50, by dotted lines.

The surrounding area was investigated for laundromat facilities. The
lack of such facilities in the North Lansing locale indicates that a
good percentage of the park tenants would use the laundry in the utility
building. It is estimated that five automatic washers, one extractor
and one small double tumbler dryer will be adequate to accommodate all
park tenants. If one wringer type machine were installed, four auto-
matic washers would prove ample.1 This modification was considered in
as much as less initial outlay would be required. It was rejected be—

cause of the preference of tenants for automatic washers.

The layout of the equipment within the room facilitates a straight line
work flow-~from the washer to the extractor to the dryer and finally,

the folding table. Ten windows on the west, north and east sides of

t

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51
the room provide good natural illumination and a cheery atmosphere.
Laundry trays are provided fer bleaching and the cleaning of materials
requiring scrubbing. Space is available for two twin-cylinder laundry
dryers. Only one of these double units will be equipped with two 15
pound capacity tumblers which should prove adequate for the expected
usage. The second can be added at a later date as demand dictates.

The dryer is only 27.9 inches wide, so it can easily go through a nor—
mal door opening. It will be gas heated as steam, the other tumbler
heat media, is not produced from the heating equipment to be used in

the building.

Hot water for the laundry is provided by a l9§,OOO B.T.U. gas fired
heater that has a recovery rate of 13h gallons per hour at lhO degrees.
Coupled with this installation will be a 220 gallon glass lined hot
water storage tank. This installation is rated to prove ample hot water

for seven automaticwashers.2

All machines are of a commercial type and contain built-in coin meters.
The washers are a model that has proved very economical with water,
using 2h.§ gallons for each complete cycle. Only 11.9 to 15 gallons
used are hot water. The motor size is large in relation to the machine
capacity so that it cannot be overloaded. Overloading is a common prob-

lem in public laundries.

Also available for use within the laundry is a 56 inch gas heated
2h,OOO B.T.U. ironer. It is metered for 30 minutes at $.25. A l/3
horsepower 300 watt motor powers the 9 inch roller. This machine is

large enough to easily do sheets, bed spreads and other large flat work.

52
Ample space is available in the garage section of the building to park
a jeep or station wagon or to store a lawn mower, snowplow, back-hoe
attachment, dozer blade or related equipment. A workbench will be pro-
vided in this area where the proprietor may make repairs on machinery

and fixtures.

The building will contain the toilet facilities required by law.3 These
rooms will be locked so that maintenance may be minimized. They will
be opened only in the event of sewer or water failure at a tenants'

site or other similar emergency. Heat will be of the same type as that

provided in the office, a forced hot air furnace.

Electricity

 

One of the most significant developments marking the growth of the
mobile home industry has been the sharp growth in the use of electrical
appliances. Twenty five years ago, a mobile home was considered deluxe
if it was equipped with electric lights, an electric refrigerator and
perhaps, an electric toaster. Since 1929, however, the increase in the
use of residential electrical applianceshas been over hOO percent.Ll

The increase fOr the mobile home owner has been at least that much. A
recent survey by the Detroit Edison Company found that the average
mobile home owner uses as much electricity as the owner of an average

private dwelling.g

As can be seen from Table 2,6 page 53, the number of appliances that
may be present in any given mobile home will vary widely, according to

preferences of the owner. But the trend toward more, and.bigger,

53

electrical appliances in the mobile home is well established.

MAJOR FIXED APPLIANCES IN THE MOBILE

TABLE II

H0 ME

 

 

FIXED APPIANCE

l. Refrigerator . .
2. Range . . . . .

3. Fan (kitchen). . .
1:. Water Heater . .
‘3. Clothes Washer .
6. Ironer . . . . .

7. Heating Plant (motors and c n

8. Dishwasher . . . .
9. Bathroom Heater. .

10. Food Waste Disposer.

ll. Clothes Dryer. . .
12. Home Freezer . . .
13. Air Conditioning .
1’4. Clock (kitchen). .

** These appliances should

\

o o e e o
o o o I O O
o e e e o e
e e e e o o

t

be operated

FROM: Edison Electric Institute.

This,

rol

CAPACITY WATTS

( Approximately)

0.0...
(peso...
0.0000000

on 2h0 volts.

200 (1/6 h.p.)
7-114 107% .
hS

1-3 ICE-H
376-1800

1650

700

1150
1000-1500

300 (1/h h.p.)
1500 8:. 1600“
350
1000-3100**

2

coupled with the fact that 80 percent of the parks are currently

inadechiately wired,7 is reason enough for the prospective operator to

Plan his wiring for the present and future carefully.

Elestrical service for the proposed site would be provided by the Lan-

Sing Board of Water and Electric Light Commissioners. The company has

Sh

had no experience in recent vears with servicing new parks, thus their
obligation in helping develon the park would come as a result of negoti-
ations with the engineering, metering and billing divisions. If necess-
ary a fermal contract could be negotiated covering points such as the
responsibility for engineering the project, which party finances the

various parts of the system and what the billing procedure will be.8

It is thought that the company probably will bring h,160 volts on its
primary distribution lines up to the park. This will be on a pole upon
'which a transformer is located. At this point, the grounded three wire

circuit may be distributed to the tenants as the owner sees fit.9

Experience shows that the installation of an underground system is
about three times as costly as an overhead system.10 This is because:

1. A larger guage wire is needed for underground systems
due to voltage dron,

2. A great deal of time and labor is required to make proner
water-tight snlices:

3. Trenches for the underground system have to be dug.
Despite these facts, the author believes that the benefits of an under-
ground system justifies the added expenditure of initial installation.
There would be no overhead wires, no danger of wind and storm damage

and no unsightly poles.

The power comes from a main line on U.S. 27 by way of Fredrick Street
to a master metering bOX‘WhiCh will be located on the south side of the
office building in a metal weather proof box. From this meter will
come the reading used to compute the proprietor's monthly bill. At

this point, the cable will go underground and come up at points

SS
diagramed in Figure 3, page h3, where the electricity will again be
metered-~this time to determine the tenants usage. From these points,
smaller guage cable that is less expensive may be used. This procedure
also makes possible a maximum amount of splicing above the ground at
secondary distribution points. Electricity available at each site will
be 110-220 volts and GS amperes which should be adequate for years to

come 011

Street lights will be carried on No. l? buried cable. Ten 100 watt
bulbs will be used on these lines. They will be controlled from a time
clock which will automatically turn them on and off at a given time.
These lightS‘Will be placed at a height sufficient to provide at least
three foot candles of light on all walkways and driveways. The trench-
ing for all underground cables will be two feet in depth so that they

may be free from mechanical injury.

Telephone and Television

 

Running in the same trench as the electrical cable will be the tele-
vision co—axial cable and the telephone service installation. Under—
ground television connections to a master television antenna is becom-
ing very prevalent,12 although no operator has made such an installa-
tion to date in the Lansing area. In this locale, total cost for both
installations must be met by the operator. In some places, the tele-
phone company furnishes all wire and pulls it through the conduit.
There should be no interference or adverse conditions resulting from an
installation using the same trench for the three types of wire.13 The

Wiring trench will not include sewer and water lines.

56

‘Water

 

Many mobile home parks are located where a municipal water supply is not
available. The problems of developing and maintaining a private supply
are numerous. Any supply must be adequate for all tenants, supplying as
much as 250 gallons per coach space per day,111 depending upon what de-

mand factor the proprietor anticipates. This demand factor depends upon
some of the policies set forth by the manager with respect to the amount
of lawn watering, the hours of laundry use, and the amount of car wash-
ing allowed. Rules and reaUlations that restrict theuse of water in one
or more of the wave just.mentioned pose a hardship on tenants that may

well raise considerable resentment on their part.

The water must be bacteriologically satisfactory and protected through-
out the pumping system from any possible contamination. Water in pri-
vate systems that test satisfactorily one year may prove to be contam-
inated another year, hence an element of speculation exists in the use
of a private system. Other drawbacks of a private system include the
cost of providing sufficient storage capacity to assure enough water at
ample pressures in all parts of the system even during peak hours, the
necessity of disinfecting and treating thewater, having to inspect and
maintain equipment, and bearing the added initial and maintenance costs
of the pumping equipment itself.1g For these reasons, it is recommended
that connection should be made to a public water supply if it is avail-

able.

An adequate and safe supply of water under ample pressure will be pro-

vided to serve each trailer coach space at the proposed site.

S7
Fortunately, this water may be obtained from city water lines thus
eliminating the necessity of developing a private system. The cost of
connecting to this system is not exorbitant because the city water main
comes to the very entrance of the tark. There is also a water hydrant

at that point which will be available for use in the event of fire.

Piping of the distribution system within the park should be able to
supply six to eight gallons of water per minute at a minimum pressure of

20 pounds per square inch at each coach space outlet.16

This require-
ment may be met with Lansing city water pressure using a four inch main
with two inch lead-offs and 1/2 inch lead-ins to individual lots. A
separate water connection will be provided for each trailer coach space.
This connection will consist of a riser terminating at least four inches
above the ground surface, with two l/2 inch valved outlets. The ground
surface around the riser pipes will be graded to divert surface drain-
age away from the connection. The riser pipes will be encased in a six
inch vitrified-clay pipe, with the intervening space filled with an
insulating material to protect it from freezing. An insulated cover
will be provided which will encase both valve outlets, but not prevent
connection to the coach during freezing weather. Outlets will be
threaded so that a screwed connection, using flexible metallic tubing,
may be made from one outlet to the coach's water piping system leaving
the other for use as a hose connection for lawn watering and fire con-

trol.

Sanitary precautions will be taken in laying all water pipes. They will
not be laid in water, now where theycan be flooded by water or sewage

during the laying process. Dirt and other contaminating material will

58
be excluded from the pipe, and all water pipes will be disinfected be-

fore being placed in service.

Sewers

If public sewers should not be available within a reasonable distance
of the court's site, an adequate sewage—treatment plan must be installed
to dispose of all sanitary sewage. With sewers, as with water, it is
desirable to make use of public facilities if they are available. In
this way, continued maintenance can be avoided and there need be no
fear of health hazards or odor nuisance to the occupants of the court
nor of adjacent property. It is economically feasible to make connec-
tion with the Lansing city sewer main despite the fact that the initial
cost of installation will be very high. The cost of constructing a
connecting line up to U.S. 27 at $7 per foot rests entirely with the
owner of the park.17 In addition, a pump of sufficient capacity will
be needed to move the effluent to the U.S. 27 main, for the low point
of the park is situated well below the highway. It is thought that
this one time cost is reasonable when considering the superior service
the system will render. In determining the size of the connecting main,
it iS'Well to anticipate the maximum number of coach Spaces expected to
be deve10ped in the area. The 33 acres will be able to accommodate
about 350 coaches when expanded to maximum capacity. In as much as this
expansion is anticipated for a future date, the estimate for the drain
size is based upon this figure and a minimum usage factor of 125 gallons

of effluent per space each day.18

59

All sewer lines will be laid in trenches separated as far as is practi-
cal from the water supply line. Tile will be laid with enough grade to
insure a velocity of two feet per second when the sewer is flowing full.
This is possible with the anticipated six degree slope of the graded
land. All joints within the system will be water-tight to lessen pos—
sible contamination and minimize groundawater infiltration into the
sewage system. Cleanouts will be installed at every change in direction,
at every junction of two or more branch sewers and at intervals of not
more than 100 feet.19 Each sewer lateral will be appropriately vented

and every connection will be "P" trapped below the frost line. Thirty

inches in depth should prove adequate for this installation.

Roadways

The design and width of roads shown in Figure 3 is such that two-way
traffic may be maintained. The single entrance permits better traffic
control and discourages those who are not tenants from using park road-

ways as a thoroughfare.

Good roads are essential in any mobile home park because they must
accommodate heavy traffic. Trailers may come into the park that weigh
as much as 16,000 pounds. This, with anticipated automobile traffic
makes a surfaced raod desirable. It is thought that a bituminous
aggregate roadway would be satisfactory for the type of traffic the

road would sustain.

Actual construction of the tarvia surface would not take place until

after approximately a year of operation. This is because subgrade

60

material must be worked into the roadbed thoroughly to form a rigid base

before surfacing.

Processed gravel would be put on the graded bed. It consists of stones
and small amounts of clay used to hold the stones together. These would
be graded periodically and added to when necessary, so that in a year,
the bituminous aggregate surfacing could be added to make a very dur-

able roadway.2O

The entrance area bearing the most traffic will be four inches in thick-
ness. Three inches will be sufficient for the remainder of the park.
Parking areas adjacent to the roadways will be surfaced with pea gravel

over processed gravel.

Refuse Disposal System

 

Each coach space will require four to six gallons of refuse storage

capacity per day.21

Bearing in mind that refuse pick—up will be twice
a week, the combined volume of containers should be upward of 1,000
gallons. A sufficient number of container will be available to meet

this need.

Refuse containers will be of 33 gallon capacity and will be made of
heavy guage galvanized steel. They will be fly-tight, water-tight

and rodent-proof. They will rest on a pipe rack that is elevated from
the ground to facilitate cleaning. A fence-like structure will be a

part of the rack and constructed to go around the containers to prevent

domestic animals and.children from tipping the cans over.

61

Fire Protection

 

The distance from the existing fire hydrant to the rear of the park is
790 feet, a space sufficiently short to make unnecessary the installa-
tion of another hydrant at the rear of the park. It is recognized that
additional fire fighting eouipment is needed to conform with the law
and to provide optimum fire protection for tenants and property, hence
portable fire extinguishers will be available in all building enclosures

and at locations within 200 feet of each individual trailer site.22

62

FOOTNOTES - CHAPTER IV

lKatalinich, Thomas, Trailer Village, East Lansing, Richigan.
(Personal Interview.) February 8, 1956.

2Hammond, Samuel C., Lansing, Michigan. (Personal Interview.)
may 22’ 1956.

3Michigan Department of Health. State of Michigan State Acts and
Rules and Regulations Related to Trailer CanEOParks. Michigan Depart-
ment of Health, Lansing, Michigan. (October 1935). p. 28.

 

llBargman, Theodore. "Electricity: Basic Facts for the Park Opera-
tor," Trailer Park Management. h:7 (December 1955). p. 2b.

 

SIbid.

6Bargman, Theodore. "Electricity: Basic Facts for the Park Opera-
tor," Trailer Park Management. h:8 (January 1996). p. 18.

 

7Bargman, 92, £33., h:7 (December 1955). p. 2b.

8Thompson, Max, Lansing Board of Water and Electric Light Com-
missioners, Lansing, Michigan. (Personal Interview.) May 16, 1956.

9Ibid.

1oIbid.

lllbid.

12Bargman, Theodore. "Electricity: Basic Facts for the Park Opera-
tor," Trailer Park Management. h:9 (February 1956). p. 19.

13Thompson, 22, git.

Federal Security Agency, U.S. Public Health Service. Trailer
Court Sanitation: With Suggested Ordinances and Regulations. fiSbiIe
Home Manufacturers Association, Chicago. 1953. p. 10.

15

16Ibid., p. 12.

Ibid.

 

17Hu1ett, Stanley L., Lansing, Michigan. (Personal Interview.)
April 17, 19560

18Federal Security Agency, op. cit., p. 15.

191bid.

63

ZOScherer, H. J . , Lansing Asphalt Company, Lansing, Michigan.
(Personal Interview.) May 22, 19%.

21Federa1 Security Agency, 213 cit., P. 16.

22Michigan Department of Health, 93. cit., p. 22.

CHAPTER V
ESTIMATED CAPITAL AND OPERATING BUDGET

It is advisable for the prospective park operator to prepare both a
cauxrtal budget and an operating budget for at least the first year of
operation prior to construction. They will serve well as information
upon which to base action. The budget brings the owner to an early

study of the problems that may be expected during the construction

phases of the business and when operations finally begin.

Budgeting is important because it will help in directing capital and
effort into the most profitable channels by means of a balanced and uni-
fied program.l Before spending money, it is well for the park operator
to give serious thought to the amount which can be profitably Spent,

from where it is to come, just how it should be spent and what results

may be reasonably expected.

In the case at hand, the list of capital expenditures is presented
principally to determine the probable investment in the park. {with this
figure and the anticipated income and expenditure figures for the first
year of operation represented in the operating budget, the author was

able to forecast the profitability of the proposed enterprise and arrive

at an unexpected return on investment.

EXpected capital expenditures are based upon the estimates of park opera-
tors, builders and contractors who saw plans and heard the author out

With respect to construction details. It should be recognized that a

65

more accurate capital budget might have been prepared had bids on work

actually been let to contractors. This did not seem practical at the

time of writing.

As was stated in Chapter I, the prospective park operator has ample
funds with which to construct the proposed park and carry on operations
for an extended period. Therefore, no consideration was given to debt

service in the operating budget section of this chapter.

Information for compiling the operating budget was obtained from three
park Operators and people respresenting various service and utility
businesses in Lansing. Since there has been no operating eXperience at
the proposed park, it should be kept in mind that this budget is not as
reliable as it might be if it reflected past experience. As open to
question as the budget might be, the author considers it to be a necess-

ary step in predicting the probable success of the enterprise.

TABLE III

ESTIMATED CAPITAL BUDGET*

 

 

 

 

 

SITE
1.Landeeoeeeeeeoeeeeee$211,000.00
2. Clearing and Grading . . . . . . . . . 2,100.00
3. Walkways, Runways and Patios . . . . . 5,600.00
b. Roadways and Parkstrips . . . . . . . 12,250.00
50 Landscaping 0 e e o e e e e e e e e e 1,3h0.00
UTILITY DISTRIBUTION SYSTEM
6. Electricity- . . - . . - . - . . . . $11,h2b.00
7. TQlCViSion e e e e e e e o o e e o o e 5,121.00
8. TCleDhone o o o o e e e o e e e e e e 1,3hh.00
9..‘Natereeeeoeoeooeeeeeeb,816,00
10. seweroeeeoeoeee000000-18,33O.OO
BUILDINGS
11¢ Offica BUildi'ng e o o e e e o e e 0 $10,660.00
12. L’tility Enilfing o o e e e e e o e e 0 5,980.00
316,6h0.00
EQUIPMENT AND FURNISHINGS
130 Laundry EQlliment e o e o e e e e e 0 .$3,136.00
1h. Neon Sign . . . . . . . . . . . . . . 1,570.00
15. JCCD and AttaChmentS e e e o e e e e 0 1,683.00
16. Office Furnishings . . . . . . . . . . 32b.00
17. Gardening Tools and Equipment . . . . h20.00-
18. Miscellaneous Tools and Eauipment . . 175.00
19. Cola Beverage Hachine . . . . . . . . 300.00
87,608.00

 

TOTAL CAPITAL COST. . . . . . o . . $110,573.00

E

*See the following pages for budget support.

67

Support fOr Capital Budget

Site

 

1. Land: The price of the land is $2h,000.2 This is based upon

 

the present selling price of the whole parcel which is approximately
33 acres. Though only about h.9 acres of this parcel is to be used for

the proposed park, the owner is insistent upon selling the entire amount.

2. Clearing and Grading: The estimate of cost for clearing is
negligable. The land is clear, except for twelve relatively small trees
that must be removed. Cost of grading will be determined from an esti-
mate of the numberod'cubic yards of dirt that is to be moved and the
cost per cubic yard of'moving it. These figures are h,000 cubic yards
of dirt and $.50 per cubic yard for removal.3 Cost for grading is
therefbre 32,000; for removal of the trees, $100. Total cost for clear—

ing and grading amounts to $2,100.

3. Walkways, Runways and Patios: An estimate of the concrete

work as described in Chapter IV and shown in Figure b, page hb, is 3100

per site.11 Total cost is 8%,600.

h. Roadways and Park Strips: There are 2,876 square yards of
Dark strip and 5,013 square yards of roadway. Both must be subsurfaced
with processed pea gravel at a cost of $.60 per square yard. For 7,889
Square yards of area, this would be 3h,733. The cost of a two inch top
dressing for the road is $1.50 per square yard or $7,519 total.5 The

entire cost for road construction and park strips is $12,250-

68
5. Landscaping: Landscaping costs will be minimized because the
«owner expects to do much of the work himself. Actual investment the
first year will be in top soil and trees. It is estimated that 550
cubic yards of top soil at $2 per cubic yard will be needed. This cost
of 31.100 in addition to a 8110 outlay for 22 American Elm trees and

$130 for 20 Red Norway Maple trees amounts to $1,3h0.6

Utility Distribution System

6. Electricity: The electrical installation was estimated at
$1l,h2h by the Lansing Board of water and Electric Light Commissioners.7
The system upon which the estimate was based has been described in Chap—

ter IV under the heading Electricity.

 

7. Television: The major expenditure for a television installa-
tion is represented in a 3h,h8h master antenna. In addition to this,
the cost per site is $11.37. This estimate is based solely upon the
cost of materials and labor for installing the facility. It must be
remembered that telephone, television and electrical lines may all be
installed in the same trench. The cost of trenching was considered in
the electrical estimate and so was not included here. Total cost for
a complete television installation is $5,121.8 Although the cost per
individual site is questionably high, the master antenna will serve all

subsequent construction, thus lowering the unit cost.

8. Telephone: Initial telephone expenditure is based upon a cost

Per site of $23. Total expenditure is therefore $1,3bh.9

69

9. Water: The cost for water service to each lot will be approxi-

 

mately $86. Total cost is $h,816.lo

10. Sewer: The construction of facilities that will make available

 

city sewer lines is unusually expensive. However, when considering this
cost as Opposed to the cost of a sewage treatment plant and the con-
tinued maintenance of such a facility, it may be seen that the only

right course of action lies in reaching for the city main.

The cost within the park will be approximately $2,800. An additional
cost of $7 per running foot is incurred by the owner for a main that
will run from the U.S. 27 main to the park. This distance is about 790
feet, which represents an expenditure of $5,530. In addition to this,
a sewage ejector system must be installed because U.S. 27 is higher
than the low point of the park. Such an ejector with appropriate sump
and pump will cost as much as $10,000. Total cost for sewage removal

system is $18,330.11

Buildings

11. Office Building: The cost of the office building is estimated

 

to be $5,980, while the cost of the marou-e over the entrance drive is
$h,680, making a total of $10,660. These figures were determined from
a $7 and $3 per square foot estimate respectively. This cost includes
heating equipment, mail boxes, planter stand, lavatory facilities and

Parts bins.12

 

12. Utility Building: The cost estimate for the utility building

13 35.75 per square foot of building space. This is calculated to be

70
39,980. It includes heating equipment for the building, but not for the

laundry facilities within the building.13

Equipment and Furnishings

 

13. Laundry Equipment: Equipment in the laundry described in

Chapter IV includes:

5 Automatic washing machines . . . at $23k . . $1,170.00

1 Extractor. . . . . . . . . . . . . . . . . . 392.00
1Drjereeeeooeeeeeeeeeeeeee 52!;000
1 Ironer . . . . . . . . . . . . . . . . . . . b69.00
1 Hot water heater . . . . . . . . . . . . . . 395.00

1 HOt water Stora‘ge tank 0 e o e e e e e e e 0 188.00
$3,136.00

The total cost for all machines is 33,116}11

lb. Neon Sign: The sign, although affixed to the building, is
not part of the contract price of the building. Its construction will
be done by a sign contractor. Double tube letter three feet in height
are $30 a letter. Nineteen letters, suggested in Figure 5, page hé’
brings the cost of the lettering to $570. The box frame is 8 feet by
25 feet or 200 square feet. At $h a square fOOt, this cost would be
$800. Installing the sign was estimated at $200,bringing the total cost

of the installation to $1,570.1S

15. Jeep and Attachments: A jeep is useful for many jobs that are

 

apt to be encountered in a park. A dozer blade attachment will prove
beneficial for snow removal and doing riinor excavating jobs. An attach-
ment may be put on the front for coupling onto coaches to spot them on

the individual lot. When the proprietor decides to expand his park, he

71
can rent or buy a back-hoe attachment, or Sherman digger, which is
affixed to the jeep and used for digging trenches for sewers or electri-

cal lines.

A used jeep may be purchased for $1,h00. A dozer frame and six foot
blade with appropriate controls would be $283. This makes a total cost

Of 81,683.16

16. Office Furnishings: Office furnishings will include the fol-

 

lowing:

1 Desk . . . . . . . . . . . . . . . . . . . $119.95
IDCSkCha-iroeeooeooooooooeo 3907s
2 Occasional chairs. . . at $19.95 . . . . . 39.90
1 Lamp . . . . . . . . . . . . . . . . . . . 7.75
1 End table. . . . . . . . . . . . . . . . . 22.95
1 Coffee table . . . . . . . . . . . . . . . 20.95
1 Planter planting . . . . . . . . . . . . . 35.00
2 File cabinets. . . . . at $1h.75 . . . . . 29.50
2 Window curtains. . . . at $h.h5 . . . . . 8.89

$32h.6h

Total cost for these furnishings is $32b.6b.17

17. Gardening Tools and Equipment: Garden tools and equipment

 

will include the fo1lowing:

lPOWerllwnmower.............$?83.00
2 Hand lawn mowers . . . at $1h.50 . . . . . 29.00
1 Lawn roller. . . . . . . . . . . . . . . . 15.95
2 Wheelbarrows . . . . . at $21.95 . . . . . b3.90
h Shovels. . . . . . . . at $2.19 . . . . . 8.76
3 Garden rakes . . . . . at $1.98 . . . . . 5.9h
2 Hoes . . . . . . . . . at $1.65 . . . . . 3.30
1 Spade fork . . . . . . . . . . . . . . . . 2.19
Miscellaneous garden tools and equipment . . 27.96

Sh2o.oo

Total cost for these items is $h20.18

72
18. Miscellaneous Tools and Eouipment: riscellaneous tools and
equipment might include such items as saws, files, screw drivers, pliers,
a grinding wheel, an electric drill, nails, screws, etc. The estimated

cost of these items is $175.

19. Cola Beverage Machine: A cola beverage machine placed in an

 

accessible location would be a convenience to many. Such a machine can
be rented or purchased. The purchase of a unit, as planned here, in—

volves an expenditure of $300.

TABLE IV

ESTIMATED OPERATING BUDGET*

 

 

EXPENSE

8.

9.
10.
11.
12.
13.
1h.
15.
16.
17.
18.
19.
20.
21.
22.
23.
2h.
25.
26.
27.
28.
29.
30.

Lot Rental .
Electricity.
Bottled Gas.
Laundry. . .
Cola Beverage
Small Parts .
Telephone . .

Real Estate and Property Tax

Annual Fees. . . . . . . . . . . . . . . .
Monthly Fees . . . . . . . . . . . . . . .
Electricity. . . . . . . . . . . . . . . .
Telephone. . . . . . . . . . . . . . . . .
Water...................
Sewer.................o.
RefuscDispOSal..............

Vehicle Fuel, Maintenance and Depreciation
Buildings Repair . . . . . . . . . . . . .
Equipment and Furnishings Repair . . . . .
Equipment and Furnishings Replacement. . .
Utilities and Park Improvement Depreciation
Buildings Depreciation . . . . . . . . . .
Bottle Gas for Resale. . . . . . . . . . .
Cola Beverage for Resale . . .
Small Parts for Resale
Heating. 0 o o e o o 0
General Supplies . . .
'Wages. . . . . . . .
Advertising. . .
Association Dues
Insurancao o o o

o o o 0

O O O 0 O O O

O o o o o o e

o o o O O 0 o

O O O 0 O O 0

O O O O O O O O
o o o o o o e o
0 o 0 o 0 o I

O o o o O o o

O O O O 0 O O

O O 0 O O O 0

TOTAL EXPENSE . .

ESTIMATED TOTAL INCOME OVER EXPENSE . . . . . . . .

$233520.00
8,h00.00
1,730.00
1,300.00
873.00
690.00
lhh.00

$36,6S7000

 

. $1,035.17
. 25.00
. 1,h00.00
o 11,255.31}
. 105.00
. hh2.h8
. 329.92
. 177.60
. 580.00
. 281.60
. 296.25
. 570.60
. 30959.18
. 728.h0
e 1,297.60
. 392.12
. 1,h00.00
. 900.00
. 350.00
. 1,907.bo
. 2b8.00
O bhOw
. 160.00

. $20,885.56

 

o 315’ 771 0 11h

 

*Seo the fellowing pages for budget support.

7h

Support for Operating Budget

 

Income

1. Lot Rental: It was decided that a rate of $35 per lot would

 

be charged each month. This figure is somewhat higher than that charged
by other parks in the Lansing area. It is not unrealistic, however.
Parks in Flint, Michigan usually command the same rent as those in Lan-
sing. A notable exception is a park having many of the features con-
tained in the pr0posed site, and an underground gas and oil distribu-
tion system which the proposed park does not have. This Flint operator
receives 338.50 per coach space each month, a difference of $3.50 over

the proposed park.19

Anticipating a maximum occupancy in the park, 56 spaces will bring

$23,520 per year.

2. Electricity: Tenant's coaches are traditionally metered in

 

this area by the park operator who pavs for the entire amount of elec-
tricity used in the park and then bills his tenants accordingly. Con-
sumers Power Company, who service several Lansing parks, poses limits
as to the rate that may be charged to ultimate users in parks. How-
ever, the Lansing Board of Water and Electric Light Commissioners does
not. Since the proposed park will be serviced by the latter, it is
possible to charge a higher rate. The writer establishes a straight
rate of $.03 per kilowatt hour. It is known that two other operators
charge this rate in the Lansing area and, although it is high, such a

rate has raised no serious objection with tenants of those parks. A

75
high rate is mandatory in as much as a relatively large investment is

represented in the electrical facilities of the park.

Experience shows that a park of 60 spaces will use about 1h,OOO kilo-
watt hours of electricity a month throughout the year.20 The income de-
rived from the sale of electricity would therefore approximate 1h,000
kilowatt hours per month times 8.05 per kilowatt hour times 12 months

or $8’hme

3. Bottled Gas: The average trailerite uses approximately one

 

20 pound cylinder of propane gas each three weeks.21 This is about 17.3
cylinders a year. Using this figure and a cost per bottle of $2, it
may be seen that the average trailer dweller will spend 83h.60 each year
for gas. Of the 56 families in the park, it is expected that 50 will
elect to purchase gas from the operator. This will make an income of

$1,730 a year from the bottled gas operation.

h. Laundry: Park operators in Lansing generally assert that their
laundry operations are not profitable. They regard the laundry as a
service facility necessary for keeping tenants in their park. One
operator who had experience with concessionnaires claimed that he could
not pay for providing hot water and heated washing area with the 20 per-
cent commission he received. From these conversations, it was thought
that losses realized in laundry operations could be minimized by the
purchase of machines rather than allowing someone to operate them as a

concession.

A schedule of rates for the various machines in the laundry will be as

follows:

76

. 3.25 per 30 minutes
. .10 per 10 minutes
. .25 per 20 minutes
. .25 per 30 minutes

Automatic washer . . . . .
Extractor. . . . . . . . .
Dryer. . . . . . . . . . .
Ironer . . . . . . . . . .

O O O O
O O O C

An estimate of income from these machines obtained from an operator who
has over 100 tenants was $36 to 6&9 perweek.22 This park is close to
the hichigan State University campus. The operator interviewed felt
that many of her tenants used the facilities on the campus to the exclu-
sion of hers. Although there will not be 100 families from which to
draw business, the location of the proposed park is divorced from other
laundry facilities, so it is expected that a greater percentage of ten—
ants will use the laundry than in the case just mentioned. A fair esti-

mate of expected income from the laundry is $26 a week or $1300 a year.

5. Cola Beverage: A cola beverage machine will be purchased and

 

placed in the laundry where it is expected that it will receive the most
use. Four to twelve cases‘would be sold each week depending upon the
season. An average of seven cases would be a reasonable weekly average
throughout the year.23 Each bottle will be sold for $.10, so the yearly

income derived from the machine would be $873.60.

6. Small Parts: Possibly the best sales year for small parts will

 

be during the first year of operations. Most people will be entering
the park during that period. Turnover will probabxy never bring as many
new tenants. The average tenant will have to purchase an oil drum and
rack with fittings for hook-up. He may buy a drainage connector and
flexible tubing. It is estimated he will spend $11.60. If 60 persons

enter the park the first year, this income will amount to $690.

77

7. Telephone: The lichigan Bell Telephone Company will install
and maintain a public pav telephone in the park. The income derived 1
from the telephone for the park operator is 15 percent of the total
revenue produced by the set.211 The income one operator on U.S. 27 ob-
tained was approximately $16 a month. He said that a number of tele-
phone users were not from his park, but persons traveling on U.S. 27 who
would stop.25 The size of this operator's park approximated the size of
the proposed park, but because of less transient use anticipated his 315
figure would be too high. An income of 812 a month or filhh a year is

more realistic.

Expense

8. Real Estate and Property Tax: Tax on land is calculated sepa—

 

rately from tax on buildings. The building tax in the area is 3b8.3§
per $1,000 of assessed valuation. The assessed valuation of the build—
ings is computed from the estimated cost of constructing them in l9h6
less two percent per year. The actual assessed valuation is 80 percent

of this figure.26

The cost of constructing the office and laundry building in l9h6 would
have been approximately $lh,263.27 Applying the formula given above, it

may be seen that the tax on the buildings would be $551.67.

The land is assessed by a township official who uses no particular
formula in arriving at a valuation of the property. The same tax rate
0f $b8.35 per 31,000 is used for land. From known valuations in the

area, a valuation of $10,000 is arbitrarily placed on the land.28 This

78
part of the annual tax would be $h83.50. The total tax for both land

and buildings is $1,035.17.

9. Annual Fees: License fees recur yearly and are 325 for each 10

 

acres.29 Less than five acres are being used for the proposed park,

thus the fee is $25.

10. Monthly Fees: The monthly fee is an expense incurred by the

 

owner of the park, not the tenant, so the operator takes the amount from
the monthly rental fee. He does not make a special assessment. It is
calculated and paid each month. The tax is $2.50 per month or major

30 It is anticipated that

fraction of a month for every occupied Space.
there will be a low turnover of tenants in the park. Nevertheless, of
those that do leave, there will be a percentage whose first fraction of
a month of residence in the park is less than half a month. A maximum

estimate for the park would be $1,680 a year. This figure would be ad-

Justed downward to filhOO a year.

11. Electricity: All electricity used in the park is metered at

 

one point so that a maximum saving mav be effected through the Board of
Water and Electric Light Commissioner's graduated rate schedule. The

rate schedule is as follows:31

3.0625 per kilowatt hour for the first 25 kilowatt
hours used per month per meter.

$.05 per kilowatt hour for the next 25 kilowatt
hours used per month per meter.

8.0375 per kilowatt hour for the next h50 kilowatt
hours used per month per meter.

3.025 per kilowatt hour for all over 500 kilowatt
hours used per month per meter.

79
It was estimated earlier in the income section of this chapter that
lb,000 kilowatt hours of electricity would be used by park tenants each
month. An estimate of the amount used in the operation of public facil-
ities such as the laundry and street lights would be an average of 1,650
kilowatt hours each month throughout the year.32 This total of 15,650
kilowatt hours must be applied to the above rate schedule to ascertain
the monthly electrical expense.
3.0625 times 25 kilowatt hours is 3 1.§6
.05 times 29 kilowatt hours is 1.2g

.0375 times LSO kilowatt hours is 16.88
.029 times 15,1S0 kilowatt hours is 378.75

$398.bh

The monthly expense for 15,690 kilowatt hours is $39R.hh. This figure
multiplied by 12 months brings the yearly electrical expense to $h,78128.
A discount for prompt payment of 11 percent or 8625.9h brings the ad-

jused electrical expense to 8h,255.3h.

12. Telephone: The telephone company advises that patrons not use
the business telephone, but be encouraged to use the pay telephone.
This would reserve both telephones for their intended purpose, increase
pay telephone revenue and minimize traffic in the manager's office. A
business telephone including a heavy print listing in the white pages of

the directory costs $8.7§ per month or 3106 a year.33

13. Water: Traditionally, the charge for water is hidden in the

 

regular monthly rental fee to tenants. Charges for water service are
billed every two months and the bill is figured on a bi-monthly basis

according to the following rate schedule.311

80

First 6,000 gallons used at $.7S per 1,000 gallons is 3t.50
Second 6,000 gallons used at .60 per 1,000 gallons is 3.60
Third 6,000 gallons used at .h5 per 1,000 gallons is 2.70
Fburth 6,000 gallons used at .30 per 1,000 gallons is 1.80
Fifth 6,000 gallons used at .20 per 1,000 gallons is 1.20
A11 overBCtOOO gallons used at .12 per 1,000 gallons.
There will have to be a supply of at least 125 gallons per coach per day.
Additional needs for lawn watering, car washing and main leakage may in-

35

crease consumption from 200 to 250 gallons per coach space.-

Taking into consideration the seasonal demand, it will be assumed that
175 gallons, on an average, will be used per coach space per day through-
out the year. The amount of water used during any two month period
would be 175 gallons times 56 spaces times 61 days or 597,800 gallons.
The cost for a two month period applying the rate schedule presented
above would be $81.9h. This multiplied by the six periods in the year
equals $h9l.6h. Assuming the allowed 10 percent prompt payment discount

is taken, this figure is adjusted downward to $hh2.b8.

1h. Sewer: Sewer charges are based upon the same number of gallons
that were used in determining the water charge. The sewage bill is paid
with the water bill and is subject to a 20 percent discount if paid
within the discount period. The rate structure differs from that of
water. It is as follows:36

First 6,000 gallons used at 3.625 per 1,000 gallons is 33.75

Second 6,000 gallons used at .50 per 1,000 gallons is 3.00

Third 6,000 gallons used at .hO per 1,000 gallons is 2.h0

Fourth 6,000 gallons used at .30 per 1,000 gallons is 1.80

Fifth 6,000 gallons used at .15 per 1,000 gallons is .90
All over 30,000 gallons used at .]£> per 1,000 gallons.

For computational purposes, the Lansing Board of Vater and Electric

81
Light Commissioners has established the number of gallons of sewage
generated as being equal to the number of gallons of water consumed al-

though this may not necessarily be true.

Using the same period of 61 days and the same number of gallons of sewage
as water, 597,800 gallons, the cost mav be ascertained from the above
rate schedule. The calculated cost of $68.73 multiplied by the six
periods of the Year equals a yearly charge of $bl?.38. If the 20 percent
discount is taken, as exoected, this brings the yearly charge for sewage

to $329.92.

15. Refuse DiSposal: Act 255 of the Public Acts of 19h1 requires

 

that refuse must be removed at least twice each week. Because the site
location is outside the Lansing city limits, arrangements for a semi-
weekly pickup must be made with a private concern or individual. It is
estimated that 27 to 37 cans of refuse will have to be removed. The cost
of the maximum estimated removal would be $1h.80 per month or $177.60 per

year 0

16. Vehicle Fuel, Maintenance and Depreciation: One operator who

 

had a jeep found that he spent $180 on repairs and $200 for fuel while
using it strictly for park operations.38 Allowing $200 for depreciation,
and expenses equal to those of the operator just mentioned, total expense

would be $580.

17. Buildings Repair: When definite past experience is lacking,

 

the cost of building repairs may be estimated at $.02 per cubic foot.9
Using this rate, the cost for utility and office building repair will be

computed as follows:

‘1

82

Utility Building: 26xb0x8 is 8,320 cubic feet x 3.02 is 8166.h0

Office Building: 32x20x9 is 5.760 cubic feet x .02 is 115.20
$281.60

Total yearly cost for the repair of the buildings is $281.60. This may
be high for the first year because a reputable will usually make good

any faulty workmanship during the first year after construction. These
are repairs that would have to be paid for by the park owner during sub—

sequent years.

18. Equipment and Furnishings Repair: The cost of equipment and

 

furnishings repair is estimated at five percent of the original cost of
the equipment.h0 Items of eouipment included in this estimate are all
laundry machinery, the neon sign, the office furnishings, the cola bev-
erage machine, all gardening tools and equipment and miscellaneous tools

and equipment. These items cost %§,925. Five percent of this amount is

$296.25.

19. Equipment and Furnishings Replacement: Eouipment and furnish-

 

ings replacement, figured at 7.5 percent of original cost,’41 is admit-

tedly high. It is expected that there will be no obsolete equipment to
replace at the end of the first year. It is well, however, to estimate
expenses high and be conservative with income estimates for budget pur-

poses. Figuring 7.5 percent of $7,608 is $570.60.

20. Utilities and Park Improvement Depreciation: Depreciation is

 

well within allowable limits and approaches the estimates given on the

following page.1J2

83

 

 

 

 

Item Cost write—off Per Year Annual
Depreciation

Electricity $11, bzh 7% t 799 .68
Television 5’, 121 101 512 .10
Telephone 1, 3th 10% 13h .110
Sewer 12,800 7% 896.00
Walks, runways, patios 5,600 7% 392.00
Roadways, parkstrips 12,250 101 1,225.00

33’ 9";9 018

Total depreciation is $3,989.18.

21. Buildings Depreciation: Buildings depreciation is usually

 

calculated as four percent of the building cost.h3 The combined cost of
the buildings and the neon sign included here is $18,210. Fbur percent

of this is $728.h0.

22. Bottle Gas for Resale: The gas will be delivered by a local

 

distributor who also furnishes and maintains the bottles. The park oper—
ator must stock an ample supply to meet the need at any given time. He

will also make necessary connections if the tenant requests such service.

The average family usage of 17.3 cylinders a year was determined in the
income section of this chapter. That figure multiplied by the 50 fami-
bh

lies using gas times the cost to the Operator, $1.50 per cylinder,

will be the bottled gas expense, or $1,297.§0 a year.

23. Cola Beverage for Resale: The cost of the cola beverage to
the operator is $1.00 per case. In addition, four bottles at $.02 each

should be expected to be lost since bottles will be taken from the laun-
dry, mislaid or broken)5 This raises the cost to $1.08 per case. This

amount multiplied by the average seven cases per week delivered by the

8h

company and sold through the machine, brings the total cola beverage ex-

pense to $392.12.

2h. Small Parts for Resale: Small parts must be purchased in suf-

 

ficient sizes, style and quantity that each problem may be met. Only
those items will be stocked that are needed to actually connect the
coaches. From this standpoint, the inventory will be minimized. The ex—

pected cost of inventory is $l,h00.

25. Heating: It was the experience of one operator that heating
expense ran just over 31,000 a year}6 He heated slightly more space
than will be provided in the proposed office and utility buildings. It
is estimated that with the more efficient heating system of the proposed

park the cost will approximate $900.

26. General Supplies: The general supplies account will group to—

 

gether such items as office, lavatory and cleaning supplies; calcuim

chloride; and incidental items. Itemized, general supplies would cost:

 

Lavatory supplies . . . . . . . . . . . . . 8h0
Cleaning supplies . . . . . . . . . . . . . to
Office supplies . . . . . . . . . . . . . . 100
Calcuim chloride . . . . . . . . . . . . . 120
Incidental items . . . . . . . . . . . . . 50

$350

The estimated total for general supplies amounts to $350.

27. Wages: During the first year of operation there will be
enough work for another man through the warm months from the first of
May until the first of October. A man's total wages at $85 a week in—

cluding two percent Old Age and Survivors' Benefits and Taxes amounts to

$1, 90701800

85

28. Advertising: Formal advertising will be minimized. It is

 

thought that during the first year of operation a quarter column spread
in the yellow pages 0f the telephone directory will serve to initiate

the prospective customers to the advantages of the park. This amount of

b7

space costs $10.25 a month or $123 a year. The park will also be

 

listed in the MHMA Official Mobile Homes Trailer Park Guide and woodall's

Mobile Heme Park Directory. There will be no purchased space in these

 

directories because it is expected that rating systems used by both

directories will list the park as having been judged superior.

All money donated to charities will be given in the name of the business
and will be treated as advertising expense. These will total 8125.
Therefore, total advertising expense will be $123 for telephone directory
advertising and 8125 for charity donations, or a total of $2b8 for the

year.

29. Association Dues: Dues for the Kichigan Trailer Park Opera-

 

tor's Association are $.05 per occupied space per month which is $39 a
year. There will be a 85 initiation fee for the first year of operation

making a total $hb expense.h7
30. Insurance: Insurance will include:

310,000 Property damage
90,000 Personal liability
10,000 Fire

h9

This coverage will cost approximately $160 a year.

86

Summary

It was found that the estimated total income over expense for the first
year of operation would be 815,771.hh. This figure, representing net
profit, is h3 percent of the total income earned for the period. It
also represents an estimated 1b.26 percent annual return on the original

investment of $110,573.

The estimated cost per space for the proposed park is $l§h5, exclusive
of the cost of the land. Including the purchase price of the land, the

capital expenditure will approximate $1,97h per site.

87

FOOTNOTES - CHAPTER V

1Heckert, J. Brooks. Business Budgeting and Control. The Rowland
Press, New York. l9h6. pi4h6.

 

2Hulett, Stanley L., Lansing, Michigan. (Personal Interview.)
April 17, 1956.

3McLean Construction Company, Lansing, Michigan. (Personal Inter-
view.) June 1, 1956.

hAngell Construction Company, Lansing, Michigan. (Personal Inter-
view.) May 29, 1956.

SScherer, H. J., Lansing Asphalt Company, Lansing, Michigan.
(Personal Interview.) May 22, 1956.

6Nelson, William, Michigan State University, East Lansing, Michi-
gan. (Telephone Communication.) June h, 1956.

7Thompson, Max, Lansing Board of Water and Electric Light Commis-
sioners, Lansing, Michigan. (Personal Interview.) May 16, 1956.

8Countryman, Eldon, Dort Village, Flint, Michigan. (Personal
Interview.) April 11, 1956.

91bid.

1°Ib1d.

 

”mint, 3;. git.

12
Vandenburg Construction Company, East Lansing, Michigan. (Per-
sonal Interview.) lay 31, 1956.

13Ib1d.

 

1L'Hammond, Samuel C., Lansing, Michigan. (Personal Interview.)

15Almy, Alfred, Wholesale Neon Company, Lansing, Michigan. (Per-
sonal Interview.) Nay 29, 1956.

16Kern‘s Willy's Sales and Service, Royal Oak, Michigan. (Tele-
phone Communication.) August 3, 1956.

17Sears, Roebuck and Company. Fall and Winter Catalogue: 1955.
Sears, Roebuck and Company, Chicago. 1955. p. 5364§h1.

181b1de ) De 1298'1319.

 

88

19Countryman, ‘22. git.
20Thompson, Max, EEfAEEE'

21Katalinich, Thomas, Trailer Village, East Lansing, Michigan.
(Parsonal Interview.) April 23, 1956.

22Tobin, A. J., Trailer Haven, East Lansing, Michigan. (Personal
Interview.) February 8, 1956.

23Coca-Cola Bottling Company, Lansing, Michigan. (Telephone Com-
munication.) March 2, 1956.

2"‘Michigan Bell Telephone Company, Lansing, Michigan. (Telephone
Communication.) March 2, 1956.

25Hu1ett. ‘32. 333., May 28, 1996.

26Copp, Harold, Whipp Farm Agency, Lansing, Michigan. (Personal
Interview.) March 19, 1956.

27Vandenburg Construction Company, op. cit.

2800»: 2.2. 9.1.2.

29Michigan Department of Health. State of Michigan State Acts and
Rules and Regulations Related to Trailer Coach Parks. Michigan Depart-
ment oT'Health, ’LanSIHg, Michigan. ’(Octoberil955). p. 19.

3°Ib1d.

31Thompson, Max, gg.‘git., May 22, 1956.

321bid.

 

33Michigan Bell Telephone Company, .22'.E$E'

3hLansing Board of water and Electric Light Commissioners.
Schedule of Charges for water Service. Lansing Board of Water and
Elecfric Light Commissioners, LansTing, Michigan. 1955.

 

35Federal Security Agency, U.S. Public Health Service. Trailer
Court Sanitation: With Suggested Ordinances and Regulations. MEBIIe
Heme—Manufacturers Association, Chicago. 1953. p. 10.

36Lansing Board of Water and Electric Light Commissioners.
Schedule of Charges for Sewer Service. Lansing Board of Water and
Electric Light Commissioners, Lansing, Michigan. 1955.

 

 

37Beachman Garbage Collection, Holt, Michigan. (Telephone Com-
munication.) August 8, 1956.

38Hulett, gp.‘git., June 1, 1956.

89

39'1"hompson, 3. Earl, Michigan State University, East Lansing,
Michigan. (Personal Interview.) May 23, 1956.

hOIbid.
hlIbid.

 

1‘ZCountryman, gg. git .
h311ml.

M‘Lansing Bottled Gas Company, Lansing, Vichigan. (Telephone
Comunication.) February 16, 1956.

hSCoca-Cola Bottling Company, 32, 313.
h6Hu1ett, 23. cit., May 28, 1956.
”Michigan Bell Telephone Company, 9_p_. git.
’48

Hammond, op. cit.

l‘9Hulett, 92. 22., May 28, 1956.

CHAPTER VI
OPERATING PLANS

A plan is necessary to efficiently expedite the many details of a park
operation. One that would prove most beneficial should include informa-
tion that will make the tenant aware of his obligations to neighbors and
the park operator. Information of this sort serves to establish a
standard of conduct fbr the tenant and helps him to know what he can
fairly expect by way of conduct from his neighbors. To do this, a printed
set of regulations should be made available to each new tenant of the
community as is required by section 8 of Act 255 of the Public Acts of

19M.1

The author has drafted a set of rules which he feels will be needed in
accomplishing these objectives. Necessarily, rules and regulations con—
tain a large number of "do note" which take on an undesirable negative
appearance. Therefore, wherever possible, regulations have been phrased

positively.
Proposed Mbbile Home Park Rules and Regulations

These rules are believed by the management to be necessary, in order to
have a neat, clean and attractive mobile home community and one of which
you and your neighbors will be proud. Every resident has a Job to do in
helping to make this park a better place to live. Do your share-— it

is your home.

91

General

1. A11 tenants must register at the office upon arriving at the

park.

2. Tenants must check out of the office for clearance before vacat-
ing the park, and should notify the management as far in advance as pos-

sible when planning to check out.
3. Rents are payable in advance in accordance with park rates.

h. The use of alcoholic beverages will be confined to the tenant's

premises.

5. Loud parties, loud radios and other excess noise will not be

tolerated.
6. Drunkenness or immoral conduct will not be tolerated.

7. It will be necessary to hold parents responsible for any dam—

ages caused by their children.

8. Electric bills are due on the first of the month. After the

5th of the month, a penalty of'3.25 a day will be charged.

9. Telephone messages will be delivered to tenants only in case of

emergency. Messages will ordinarily be placed in the tenants' mail box.

10. The management will not be responsible for damage to coaches or
any other personal property; nor accidents or injury to guests; for fire,

theft or loss of valuables in or around trailers.

92

11. Office hours will be as follows:

weekdays 9:00 AM to 11:30 AM
2:00 PM to 6:00 PM
Saturdays 2:00 PM to 5:00 PM

The office will be open in the evenings from 7:00 to 8:30 PM during the
first five days of the month to accommodate working couples and tenants

'who may not be in during regular hours.

Automobiles

 

1. Cars shall be parked only in the designated areas.

2. The speed limit in the park of 10 miles an hour must be observed
at all times. This is a rigid rule because of the number of people and

the amount of traffic within the park.

Mobile Home lots

 

1. Coaches must be parked on each lot in a uniform manner, and
upon arrival at the park, the attendant will instruct the driver as to

the proper position for parking and assist him if necessary.

2. The park attendant will make the necessary electrical connec-
tion to the meter or outlets. The cord must be rubber covered and
'weather-proof. No occupant shall tamper with the meter box or other

electrical equipment. In case of blown fuses, call the attendant.

3. The park attendant will assist in completing the water and

sewer connections if necessary.

.r.

c1.

II
..,‘

I I...

~

93
h. The spotting of the coach and all utility connections must be

approved by the park attendant before utilities are used.

5. Permission from the management must be obtained for altering
any landscaping or for building fences or doing masonry work or other

construction.

6. Each trailer snace must be kept neat and clean. Storage of
bottles, cans, boxes or equipment around or under the coach will not be

tolerated.

Laundry

1. Persons who desire to use the washing machines in the laundry

will sign up at the washroom not more than one day in advance.

2. Users of the laundry will follow all posted directions on the

use of the machines.

3. A11 wash must be hung in the drying area provided by the man—

agement or be dried in the tumbler in the laundry.

Animals

 

1. Permission must be obtained from the management to keep pets in

the park.

2. Pets must be kept on a leash at all times, whether being exer-

cised or on a trailer lot.

9h
3. Noisy or unruly pets or those that cause complaints, will have

to be removed from the park.
h. Pets may be bathed on the individual's trailer lot only.
5. Pets will be kept out of the office and utility building at all

times.

Park Buildings and Facilities

 

1. Children may enter the office and utility building only when

accompanied by a parent.

2. All garbage must be wrapped and placed in the proper receptacles.

3. Bottles, cans and similar rubbish must be placed in receptacles

provided for that purpose.

h. Posted instructions and rules must be observed in all buildings.

I have read the above rules and regulations and agree to abide by them
or any other rules posted by the management as well as all Federal.

State and local laws. It is agreed that violation terminates my tenancy.

 

 

Date Occupant ' 5 Signature

9S

Promotion

Local park owners have never felt the need for any active campaign to
promote more business. The writer feels sure of obtaining 100 percent
occupany with no promotional effort other than buying a quarter column

advertisement in the yellow pages of the lensing Telephone Directory.

 

There will be no purchased space in the MHMA Official Mobile Homes

 

Trailer Park Guide or Wbodall's Mbbile Heme Park Directory. A listing

 

 

‘will appear anyway3and the ratings assigned by these two directories

will speak for the proposed park.

Newspaper space and radio time advertising are methods that will not be
employed, for such media do not touch the prOSpective customer who is
miles away. Such advertising might be used to advantage in time of slack
business if the proprietor felt the need to capture tenants from nearby
competitors. Usually the procedure for gaining entrance into a park is
to consult one of the two directories, write a letter of inquiry from
information obtained within the directory or make personalczalls on
operators in the area. Another market is the person who anticipates
_moving to Lansing, makes a trip to investigate housing, then buys a
coach in the Lansing area to be parked locally. In both instances,
directory and.yellow page space is valuable, but the newspaper and radio

media is of questionable worth.

The author feels that there is a definite need for promotion to gain the
acceptance of those businesses operating and persons living in the area
near the park. It is felt that a great deal of stigma is attached to

mobile home living today. inch of this unfavorable opinion stems from

96
the beginning of the business when the trailer was a makeshift affair
capable of rendering only the barest essentials to the ruggest existance

2 Many of the earlier units served as low

of the exploratory sportsman.
cost housing for numerous families during the depression of the thirties.
These coaches usually had a poor appearance and thus became the object
of ridicule by many.3 Unfortunately, the development of parks has not
kept pace with the increased quality of coaches each year, thus parks
have been the object of ridicule. Perhaps this is justly so, for many
parks in the Lansing vacinity have poor roads, no sidewalks, small lots
and a tangle of overhead wires. Some of this stigma may be that mobile
living does not have the permanent community stalwart connotation about

it. In any event, a program to gain favorable public acceptance will

prove beneficial.

Upon completion of the park, an Open-house would be advisable. People
could come to the park, feel welcome, and see the investment in time,
effort and money needed to provide for modern mobile living. The opera-
tor could conduct lot beautification contests and offer some form of
recognition to winners. Judges should be selected from outside the park.
Careful consideration might bring a newspaper man, a mobile home dealer,
a zoning board member and a realtor. They would have an opportunity to
see the efforts of mobile home dwellers and feel the enthusiasm that can
be generated in such a program. They would be in aposition to transfer
what they saw and heard to others. It is felt that a great deal of good

will would come from this.

Gaining the acceptance of local business men would be doing the tenant

a service. One method that might be used would be to urge the tenants

97
to stamp all their blank checks with a stamp containing the notation,
"This is a Mobile Home Check." Such a scheme would keep the fact before
local business men that a good deal of their business comes from mobile

home citizens.

It would be beneficial to belong to the Michigan Park Operators Associa-
tion and to participate actively in their promotion of the park business

in general.

All charitable contributions could be made in the name of the park. The
operator would belong and encourage tenants by word of mouth to join
service clubs and civic organizations. A newsletter would be published

periodically to inform trailerites and local businessmen of park affairs.

Records

There are four key reasons for keeping accurate records:
1. To establish capital investment position for calculation of
taxes and possible resale of the park.
2. To determine profits or losses from operations.
3. To forecast in terms of income growth or expense reduction.h
h. To ascertain information required by local laws in establish-
ing the amount of money to be paid in various fees.
Though the mechanical details of describing a double entry accounting
system is not the intent of this discussion, these records do center

about a journal and a ledger. The Journal is a chronological record of

money transactions. The ledgers catagorize the journal entries into

98
useful subdivisions. Ledger sheets might include individual tenant
accounts, laundry account and bottled gas account, to name a few. Led-
ger accounts are posted from the journal entries at the end of the day.
Both journal and ledger entries are supported by other records that in-
clude petty cash vouchers filled out when small amounts of money are
disbursed, check stubs and cash receipt carbons. All serve to verify

journal entries that are eventually posted in the ledger.

From the information recorded, it is possible to make up a balance sheet
which is a capital position picture of the moment, and a profit and loss
statement which shows profits and losses as they are accumulated over a

period of time.

Other records will be kept and reports made that are required by law.
Each householder will register on a.registration card giving the infbrm—
ation mentioned in Chapter III. A registry of all children of school
age occupying trailer coaches in the park will be kept so that a proper
report may be sent to the Lansing Township School Board. A regular re-
port will also be made to the Lansing Township Treasurer indicating the
registry for the preceding month along with other park identifying in-

formation.

Relations With Tenants

It is thought that a good initial impression upon the new tenant is im-
portant. The new tenant will be brought into the office where the mana-
ger will explain points that may not be clear in the regulations. He

will encourage the new tenant to take an interest in the appearance of

99

his lot and the park in general.

The tenant will not be charged fer having his coach parked and connected.
It is hoped that such treatment will impress him with a sense of neigh-

borliness.

All tenants will be encouraged to buy their fuel oil from one concern so
that a large quantity purchase saving can be effected. One delivery man
will enter the park, fill all tanks requiring more oil, present his bill
to the operator and accept payment immediately from the operator. The
operator, in turn, will make out individual bills and place them in
appropriate mailboxes, collecting at a later date. Although this is a
convenience to the tenant, he may refuse such service and elect to do
business with whom he chooses. There will be no restriction of dairies
laundries, radio-television repair concerns and other businesses that

are apt to bring vehicles into the park.

It is felt by the author that a minimum amount of regimentation is de-
sirable, for tenants, like other people, enjoy a freedom to act as they
feel proper. Rules and regulations provide the boundaries within which
the mobile home dweller acts, and an excess of rules merely fbr the sake
of having rules seriously limits the tenant's freedom. The writer be-
lieves that as much initiative should be left to the tenant as possible,
for doing something for one tenant creates a precedent that may bring
about a volume of work that is unduly difficult to accomplish or dissat-

isfaction on the part of tenants who note an inconsistency of service.

It is thought that firmness is necessary to carry out the rules. One

should not be quick to forgive, but deal with infractions as infractions

100
and not exceptions. Compromise with tenants in the Lansing vacinity
need not be necessary to maintain a maximum occupancy. Dealing with the
first rule violators in a stringent manner serves to forewarn other ten—
ants through precedent, thus obtaining their complete cooperation, gain-

ing their respect, and establishing protection for good tenants.

The author believes that these policies can best be augmented by keeping
a polite distance from the tenant. This distance is not meant to be

maintained through an air of indifference, but rather by refraining from
an excess of social intercourse that might label the operator as one who

"plays favorites."

101

FOOTNOTES - CHAPTER VI

lilichigan Department of Health. State of Michigan State Acts and
Rules and Regulations Related to Trailer Coach Parks. Michigan Depaft—
ment 0? Health, Lansing, Wichigan. (OrRSber 1955). p. 20.

 

 

2Natale, Ralph M. Mobile Home Financing. School of Consumer
Banking, Inc., Washington. 19%. p. 3.
3mm.

 

hvichelon, L. G. How to Build and Operate a Mobile-Home Park.
Mobile Homes Manufacturers Association, Chicago. 1955. p. lII.

 

CHAPTER VII

CONCLUSIONS

The success that may be enjoyed from the enterprise described cannot be
predicted with absolute certainty for the true answer comes from opera—
ting experience alone. However, it is expected that the person making a
substantial investment in a business, such as the one proposed, would
first attempt to ascertain the success the business might enjoy. This
was done in the case at hand by way of an extensive survey of the Lan-
sing area. It was found that Lansing is a city of good potential. It
is a well established community showing a pattern of steady growth. An
unusually high income level is to be found in Lansing. Although a good
deal of the economy is based either directly or indirectly on the auto-
mobile industry, there is still enough diversification to provide sta-
bility. Some of these factors are its nearness to a large university,
its being the state capitol and the high productivity of surrounding
agrarian areas. The city has an outstanding government and an aggress-
ive chamber of commerce. Because the future of Lansing looks bright, it
would seem able to support a mobile home park. This is particularly
true because there has been a shortage of licensed coach spaces in parks

'within Ingham County to date.

Feeling, then, that Lansing would undoubtedly support a park with a good
occupancy, it was necessary to determine if a park, capable of favorably
competing for years to come, could be constructed economically enough to

produce a fair return on investment.

103
The estimated capital investment in the park is $110,573. This is a
cost of 31,97h per space which is admittedly high. One source estimates
that a 100 space modern mobile home park should cost approximately
$101,500 or 81,015 per space.1 This figure does not include the cost of
land because land values differ to a great degree. 0n the same basis of
comparison, that is, not considering the cost of land, the proposed park
would cost approximately ilShS per space. Though this difference is
still large, subsequent expansion anticipated will involve substantially
less capital outlay per site. This is because facilities such as the
office, the utility building and the sewer from the park to U.S. 27 are
incurred only once. In effect, expansion will allow a greater return on

investment as the park grows toward its maximum size.

In the proposed endeavor, the prospective owner-manager plans to devote
his entire work day to the operation of his park. As a sole proprietor,
his net profit represents an amount of money he would reasonably expect
to earn in another line of work plus a return on his investment of

$110) 5730

The author believes the prospective operator's time spent in other em-
ployment should produce 85,000 a year. As a park operator, his time
should be worth a like amount. Substracting $5,000,,then, from the in-
come over expense figure of Table IV, page 73, anticipated income from
investment is found to be approximately 810,771. This is a 9.7 percent
return on original investment. But for purposes of comparison, this
9.7 percent return becomes 12.h percent when the cost of land is ex-
cluded. The 100 space park, mentioned above, is expected to produce a

fair 10.6 percent return, the cost of land being no consideration.2

10b
From these facts it may be seen that the proposed park compares favor-

ably with what is considered a satisfactory return on investment.

Net profit percentage is another comparison to be considered. The pro-
posed park will earn a h3 percent net profit while the 100 space model

park is expected to earn 28.h percent.3

The facts presented here would indicate that the prospective operator
would find his time, effort and money profitably spent in developing a
mobile home park such as has been outlined in the foregoing chapters of

this work. It is the author's sincere recommendation that he do so.

105

FOOTNOTES — CHAPTER VII

1Mobile Homes Manufacturers Association. New Business with New
Living: {obile Home Parks. Mobile Homes L‘anufacturers Association.
Chicago. 1956. p.11.

 

 

2Ibid.

31bid.

BIBLIOGRAPHY

Books

 

Americana Corporation. Encyclopedia Americana. Americana Corpora-
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Hackert, J. Brooks. Business Budgeting and.Control. The Rowland
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Heloan, Taylor W. Mobile Homes: The Growth and Business Practices of
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Michelon, L. G. How to Build and Operate a Mobile-Home Park. Mobile
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Natale, Ralph M. lbbile Heme Financing. School of Consumer Banking,
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New York Wbrld Telegram Corporation. world Almanac. New York WOrld
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U.S. Census of Housing. Occupancy Characteristic, Type of Structure
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Periodicals

 

Anonymous. "Busy Trailer Manufacturers wait Defense Housing Calls,"
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Anonymous. "Homes on Wheels," Business week. (December 7, l9h0).
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Anonymous. "Lansing, Where wages Are High," Sales Management: The
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Anonymous. "mare and Ecre Trailers," The Literary Digest. 120 (Ap-
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Anonymous. "President Signs FHA Park Financing Bill," Trailer Park
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107

Anonymous. "Trailer Camps and Trailer People," Harper's Magazine.
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Anonymous. "Trailer Industry," The Architectural Record. 80 (August
1936). p. 161.

 

Bergman, Theodore. "Electricity: Basic Facts for the Park Operator,"
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Van Derwerker, R. J. "The Trailer-Court Sanitations Program of the
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p. 6-19 0

Other Printed Materials

 

Federal Security Agency, U.S. Public Health Service. Trailer Court
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Home Manufacturers Associatibn, Chicago. I953. p. 10.

 

 

Lansing Board of water and Electric Light Commissioners. Schedule of
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Lansing, Michigan. 1955.

 

 

 

lensing Chamber of Commerce. The History of Lansing, Michigan. Lan-
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Michigan Department of Health. State of Michigan State Acts and Rules
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ment of Health, Lansing, Michigan. (October 1955).

 

 

Mobile Homes manufacturers Association. New Business with New Living:
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Chicago. 1956.

 

Research Bureau, National Advertising Department, Lansing State Jour-
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InfOrmation compiled from records of the State Sales
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Information compiled from records of the county census.

195k.

 

Sears, Roebuck and Company. Fall and Winter Catalogue: 1955, Sears,
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108

Unpublished Material

 

Personal Interviews

 

.Ahmy, Alfred, Wholesale Neon Company, Lansing, Michigan. May 29,
1956.

Angell Construction Company, Lansing, Michigan. May 29, 1956.

Byerlay, John R., Geologist, water Reserves Section, Geological
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April 27, 19560

Copp, Harold, Whipp Farm Agency, Lansing, Michigan. May 19, 1956.

Cosens, John J., Assistant Engineer, Section of Environmental Sani-
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Countryman, Eldon, (proprietor of trailer park) Dort Village, Flint,
Michigan. April 11, 1956.

Foster, Emery G., Manager, Dormitories and Food Services, Michigan
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Hammond, Samuel C., (representative of Michigan Trailer Park Operators
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Hulett, Stanley L., (former park operator) lensing, Michigan. April
17, 1956; May 28, 1956; June 1, 1956s

Katalinich, Thomas, Trailer Village, East Lansing, Michigan. Febru-
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McLean Construction Company, Lansing, Michigan. June 1, 1956.

Nelson,'William, Nursery Foreman, Grounds Department, Michigan State
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Scherer, H. J., Lansing Asphalt Company, Lansing, Michigan. May 22,
1956.

Shirley, Philip V., Director, Division of Sanitation, Ingham County
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Spokesman fer Michigan MObile Home Dealers Association, Lansing, Michi-
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109

Thompson, Max, Assistant Engineer, Electrical Engineering Department,

Iansing Board of water and Electric Light Commissioners, Lansing,
Michigan. May 16, 1956.

Thompson, 5. Earl, Head of Department, General Institution Management,
Michigan State University, East Lansing, Michigan. May 23, 1956.

Tobin, A. J., Trailer Haven, East Lansing, Michigan. February 8,
1956.

Vandenburg Construction Company, Iansing, Michigan. May 31, 1956.

Whipp Farm Agency, Lansing, Michigan. April 3, 1956.

Telephone Communications

 

Beachman Garbage Collection, Holt, Michigan. 'August 8, 1956.
Coca-Cola Bottling Company, Lansing, Michigan. March 2, 1956.

Lansing Bottled Gas Company, Lansing, Michigan. February 16, 1956.
Kern's Willy's Sales and Service, Royal Oak, Michigan. August 3, 1956.

'Michigan Bell Telephone Company, Lansing, Michigan. March 2, 1956.

Reports

Lemke, R. L. "Park Planning-Utilization of Site." Mobile Hemes work-
shop and Conference held at Michigan State university, East Lan-
sing, Michigan. April 9, 1956.

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