CIP-63: Parcel Home - Acquire a CityDAO House in Denver
Parcel Home can meet many of the desires for CityDAO’s next parcel and build upon what we learned acquiring Parcel 0. Our first piece of land had limited use but provided opportunity for Citizens to visit and experiment. The logical next step is acquiring a house!
No idea is going to make everyone happy, but based on two months of relative inaction, it is my position that CityDAO should prioritize and maintain a bias to action. The idea here is that we can meaningfully expand our property rights allocations in light of actual use opportunities while enabling further community engagement and community value-add, while further allowing for experimentation around some of the radical concepts that have given CityDAO so much momentum.
It is in this spirit that @scottfits and I propose the following Parcel 1 process:
Parcel 1 – CityDAO Multi-Use Property
TEAM: Q2 2022 CityDAO Real Estate Guild Facilitators - Scott / Josh
PARCEL: A property in a tech-friendly/crypto-friendly environment with little or no Homeowners Association / local ordinance “blockers”
USE: Possible Uses include, but are not limited to:
- Space for CityDAO Citizens to co-work and stay (can use blockchain based reservation system and NFT entry, and other blockchain applications
- Space for Community and Facilitator Meetups/Retreats
- Rental Income (AirBNB/VRBO “Season” during high tourism months)
- CityDAO Sponsored Hacker Houses
- Co-Working “Season” – Invite other DAOs/Projects to come and collaborate/collide
- Experimental “Season” where we test unique ideas relating to Quadratic Voting, Quadratic Funding, SALSA, and other unique ways to allocate property rights (but in experimental sandbox and without long-standing consequences)
- Other Uses as may be proposed by the Community from time to time
ACQUISITION PROCESS:
- Pass this CIP, authorizing acquisition of up to $650k.
- Team selects property
- Make contingent “cash” offer
- Pay earnest money and bring property under contract
- Immediate temperature-check Snapshot to confirm property acquisition.
- If voted “YES” – we offramp fiat and close on transaction, while off-ramping extra fiat to place into interest bearing account for purpose of “cushion” on operating expenses, taxes, and insurance
- If voted “NO” – we find another property.
COMMUNITY BENEFITS: Place to stay, IRL collaboration and relationship building, useful during ETH Denver, engaging project for the CityDAO Community to rally around, experimentation leading to additional positive PR from influencers and meaningful public goods building outcomes
FINANCIALS: Upon passage of this proposal, it is authorized that $650k from the treasury is converted from ETH and offramped into fiat toward the Purchase Price, fees, taxes, and other costs of acquiring of Parcel Home. We propose moving the cash to fiat soon so that we are able to test the DAO’s new FTX off-ramp and is well positioned to make an all-cash offer in the heated real estate market.
We also point out that the $650k is not lost funds - the DAO could likely use home equity loans for future financing if needed.
BUSINESS MODEL AND OPERATING EXPENSES: There will be no initial monetization, but we will set aside a percentage of the purchase price in an interest-bearing account as a reserve for several years worth of insurance, taxes, property management, and operating expenses.
The estimated monthly costs will be around $600 / mo for things like internet, electricity, water, trash and property management.
TEAM COMPENSATION: If Scott and Josh are able to execute on this Parcel Home proposal, they will be compensated with eight (8) CityDAO Citizen NFTs and $2500 USDC each upon final closing.
EXAMPLES OF POSSIBLE PROPERTIES:
https://www.realtor.com/realestateandhomes-detail/3431-E-29th-Ave_Denver_CO_80205_M21190-32305
https://www.realtor.com/realestateandhomes-detail/34425-County-Road-145_Blanca_CO_81123_M14345-29239
https://www.realtor.com/realestateandhomes-detail/953-Kalamath-St_Denver_CO_80204_M11475-23002
https://www.realtor.com/realestateandhomes-detail/2215-Capulet-St_Austin_TX_78741_M71664-69261
https://www.realtor.com/realestateandhomes-detail/8829-SW-223rd-Ter_Cutler-Bay_FL_33190_M55437-40311
https://www.realtor.com/realestateandhomes-detail/616-Lockhart-St_Pittsburgh_PA_15212_M35363-99317
COMMUNITY INPUT:
Due to the fast-moving real estate market, we may need to make several offers and move quickly - so it’s infeasible for the DAO to vote on each property individually. This proposal authorizes the team to make the final call on the acquisition of a property, but the team will also use Snapshot or Discord votes to temperature-check things like property location and gauge DAO sentiment on acquiring certain properties.