Net Zero Resort Business Model

Updated: Aug 26, 2018

Trailer owners in Net Zero Resorts enjoy new amenities and services while continuing to experience the spectacular natural setting and unique atmosphere that brought them there. They own a durable asset that will get more valuable over time. They share in the success of the resort and benefit financially to mitigate ongoing use costs. They enjoy new amenities and services. They can use their trailer as much as they want, all year long.

The Net Zero Resort business model is a reward system that aligns the interests of trailer owners with resort owners, resort employees, investors, service providers and vendors who serve the resort, and the travelling public. The Net Zero system is also designed to address key issues that inhibit developing trailer parks to their full potential.

Conventional trailer parks lease sites to trailer owners. Trailers are often sold on-site to new owners. The right to use the site, in the form of a lease or rent contract is often assigned, after park owner approval, to the new owner.

One drawback of this approach arises when the trailer gets too old or the park owner decides to sell. Because the trailer sits on leased land, the park owner can fairly easily require the trailer to be removed. Trailers are notoriously worth far less if they aren't already on a site with a lease or contract in good standing. This reality limits the amount a reasonable person will invest in a trailer and further limits the number of people who are interested in ownership under these conditions.

Another drawback is the risk the occupancy of a trailer on leased land can be construed as corresponding to the use of a mobile home in a land-lease or mobile-home park which is considered to be a residential tenancy and not allowed under typical recreational trailer park zoning. If this occurs, the operator will be forced to give notice to the trailer owner and to change their business model to eliminate the conditions creating the tenancy. This is another reality limiting the amount a reasonable person will invest in a trailer and further limiting the number of people who are interested in ownership under these conditions.

The Net Zero System takes a new approach. Trailer owners retain their economic interest in their trailers but assign ownership of their trailer to the Net Zero System. The Net Zero System is designed to do the following:

(1.) Eliminate the risk of creating a residential tenancy by having the trailer and the site leased from the Timber House Resort by the occupant (rather than just the site, as is currently the case). The Timber House Resort will operate the trailers on behalf of the Net Zero System.

(2.) Protect and ideally enhance the economic value of the trailer for the owner by managing the trailer as an asset in the Net Zero System. Trailer owners assign the trailer and receive an Asset Token in return. The Asset Token has an assessed value that corresponds to the current value of the trailer on the site at the time of assignment. Asset tokens have special significance as they confer rights to control who has the right to use the trailer and the site where its located. While the trailer is held in the Net Zero Resort System, the holder of the Asset Token will initially be required to make the trailer compliant with base Net Zero Resort standards. The Asset Token holder will also be presented with opportunities for funding and other programs to improve the trailer. While the Asset Token holder rents the site and the trailer, they will be required to maintain the trailer in its current state. The Net Zero System is set up to buy or redeem Asset Token amounts over time from the owner, if the owner so desires. Or, if the owner wants to, the owner can 'unwind' their participation in the Net Zero system at any time by discharging any obligations accumulated with respect to any investments made in the trailer by third parties and redeeming the original asset token value in return for their physical trailer. On doing so, the trailer reverts to becoming the property of the holder.

(3.) Other tokens are issued to resort owners, employees, investors, vendors and service providers for their commitments and possibly as partial payment for their goods or services. The issuance of tokens is under the control of the Net Zero System. The Net Zero System is set up to buy or redeem these tokens over time from their owner, if the owner so desires

(4.) The Net Zero Resort system aligns the interests of all the parties by allowing redemption of all tokens, asset or otherwise, under certain pre-determined conditions. The redemption of tokens for Canadian dollars is pre-arranged based on an agreed percentage of the revenue of the Timber House Resort. The dollar value amount is allocated to individual token holders in proportion to their ownership.

Timber House Resort revenue should grow quickly, due to the establishment of Net Zero Resort Hotel Trailers on some sites, Air B'n'B style trailer sharing, to the extent that Trailer Asset Token Holder/Site occupants choose to share their trailers for rental to the travelling public or Fractional Ownership revenue generation when Trailer Asset Token Holder/Site occupants choose a Fractional Ownership arrangement. These transactions will be openly and transparently recorded in the Net Zero Resort system, thereby building trust and encouraging all participants to assist with the success of the Resort in return for their fair share of the proceeds.

Through this system, over time, the holders of the Trailer Asset Token can potentially redeem the entire current value of their trailer in dollars or for valuable goods and services. At the same time, through the residual Asset Token amount they hold, the token holder retains the License to Use control privilege for the trailer on the site. This may be sold to a new buyer in the same fashion along with any residual Asset token value. Through this mechanism, over time it is possible the sale of the License to Use control privilege will net the seller more than the original value of the trailer when it was assigned to the Net Zero System.

Trailer owners control the Net Zero System as members of the Net Zero System Co-operative business entity. Resort owners, employees, tourists, vendors and suppliers are also members, but are far outnumbered by trailer owners.

69 views0 comments

Recent Posts

See All

You? In a trailer park?

If you ever visited a really cool trailer park or campground, it probably is a great memory. I remember a sand-between-my-toes, whiff-of-suntan-lotion, epic-sunset, best-picnic, best-beach, coolest-ne

Escape to Bliss!

Remember that sand-between-your-toes, whiff-of-suntan-lotion, epic-sunset, best-picnic, best-beach, coolest-new-friends, felt-the-love experience you had so long ago? Its still here, at the Timber Hou

© 2018 by