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3 - COMBINED PUBLIC COMMENTS_301 325 N TUSTIN
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3 - COMBINED PUBLIC COMMENTS_301 325 N TUSTIN
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The problem with this is that the land that a car wash is built on is <br />considered a “single-use property” by the bank. Lenders use this <br />designation to evaluate risk. If a site is considered a single-use <br />property, it can’t be easily converted for any other use. <br />Infrastructure, such as car wash pits (which is Pit Crew’s cleaning <br />specialty (http://pitcrew.com/process/)), are built into the site and <br />are unique to the car wash industry. <br />If a bank lends an owner the money for a car wash and the <br />business goes belly up, the bank can’t depend on a hair salon to <br />set up shop in the conveyor tunnel and begin offering in-bay <br />automatic hair washes. The hair salon would need some serious <br />financial support to convert the equipment into hair washing and <br />hair dressing tools… or else it just isn’t happening. <br />So the hypothetical situation has the potential to play out like this: <br />you build a car wash across the street from a successful car wash, <br />hoping to steal their business. One of three scenarios is possible: <br />1. They put you out of business because they are more well- <br />known <br />2. You put them out of business because you’re shiny, new and <br />ready to impress <br />3. Both you and your competitor limp along with mediocre, <br />stagnated business <br /> <br />The problem with this is that, even though #2 sounds like the ideal <br />situation for you, it could come back to bite you. As soon as your <br />competitor goes out of business, the bank is going to be looking
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