Land and prep costs

Hi Brenda. We would recommend that you use an Industry Change Activity and Sector 34 for the building construction (new museum) part of your project. Sector 36 is too broad and covers things like ship building, power plant, pipeline construction just to name few. Regarding demolition, there is no single sector for this - it is kind of wrapped up into the construction sectors. We recommend that you import the Industry Spending Pattern for sector 34 for this purpose. You can import Sector 34’s spending pattern by navigating to>Setup Activities>Activity Options>Import>Industry Spending Patterns>Select Industry to Import. We have included a link to an article that describes more on using Industry Spending Patterns: http://www.implan.com/index.php?option=com_content&view=article&id=615:615&catid=250:KB30 Once you have imported the spending pattern you can modify it by highlighting Event lines that need to be removed (clicking in the far left-hand box will highlight the Event and make the Event blue as an indication). Once an Event is highlighted, the delete button will activate. You can use this method to delete out all the line items for purchases that are not desirable. Once you have removed all the purchases you don't want to make, leaving only coefficients of spending on things like fuel purchases, operating machinery and services, you can normalize the remaining Events in the spending pattern by going to the Event Option>Change All>Normalize functions. This will make the Event lines sum to 1.00. You will then want to use the Edit Activity function in the upper portion of the screen to set the Activity Level to your budget value (Output less Value Added) and we would recommend editing the name to demolition. We have also included several related links on the topic of demolition for your review. http://implan.com/index.php?catid=84&id=16666&option=com_kunena&Itemid=1714&view=topic https://implan.com/index.php?option=com_kunena&view=topic&catid=84&id=16643&Itemid=1679 http://implan.com/index.php?catid=84&id=14271&option=com_kunena&Itemid=1714&view=topic Finally, you probably noticed that when you first imported the Spending Pattern it summed to less than 1.0. This is because the spending pattern does not have payroll included. You will need to model employee compensation/proprietor income separately, using a Labor Income Change Activity. Below is a link for your use that specifically describes how to use a Labor Income Change Activity. http://www.implan.com/index.php?option=com_content&view=article&id=602:602&catid=248:KB28 We hope this and the above links will be helpful to you.

Thank you! I will go through the steps and try and figure it out :) Thanks Again!

I did go through the steps and figured out how to get it done. I have a few questions regarding what to sectors to keep in the land cost and prep activity. The land on which this museum is going to be constructed will be (1) bought and (2) the existing building will be demolished and (3) the site will be prepped for construction. I imported the spending pattern for sector 34. Do I include sectors like 3360-real estate buying and selling since the land will be bought? Sectors 3365 and 33417 rental and repair of commercial and industrial machinery for demolition 3335 truck transportation for removing of debris 3390 Waste management and remediation services 3115 refined petroleum products for buying fuel for the equipment to be used? Those are the only spending patterns that I would need to keep right? I did figure out how to normalize and so on as well. I also realize labor income here is not included here and so I would have to create a new activity for labor income for this purpose right? Thank you, Brinda

I had another question. When I import spending patterns for sector 34 sometimes I see code 3115 (refined petroleum products) and sometimes I don't! What am I doing wrong? I have a test model and a test 2 model so I can run scenarios to compare and I am running into this trouble. Please help!

HI Brinda, I apologize for the late post. If land is purchased on which to build the arena, we suggest that you should not include this expense in your analysis. Land acquisition actually creates no impact in the IMPLAN Model. This is because land purchases are just asset swaps and no production is associated to it. However, you can capture the effects of real estate (Sector 360) and legal fees (Sector 367) associated to the land sale. You would model these as a separate activities and part of the overall economic impact of the construction project. If this does not answer your question or if you have any additional; please let us know. Thanks!