This city simulation game can affect reality.
Chapter 126 Land Expansion
In the last two weeks leading up to the end of the year, all sectors of Hitta were operating at high speed.
Old Zhou led his team in the final handover of Yunhai.
Under Hu Qian's direction, the activity center entered its final sprint before opening.
Meanwhile, the puppet troupe at the Woodcutter's Hut is in closed rehearsals for the upcoming state-level arts performance.
As for the Fisherman's Hut in Dragonspine Ambition, over time, the membership card that was initially introduced as an entry requirement spread its influence far faster than initially estimated.
As the cardholder population becomes more diverse, referral quotas are not only used for normal social interactions, but also show signs of being used in a gray area.
For example, it may be used as identification in some secret social circles, or as a medium for illegal and irregular exchanges of benefits.
"If things continue like this, it's not a good sign."
Chen Jun knew that while expanding influence was a good thing, if it touched certain boundaries and sensitive areas, it might attract the attention of regulators.
Just as they were pondering a solution to this problem, Lao Zhou knocked on the office door.
"Mr. Chen, there's something that might require your decision."
"Is there some kind of obstacle in the handover in Yunhai?" Chen Jun asked, gesturing for the other person to sit down.
"Not really, the transaction itself went smoothly. But while reviewing Yunhai Assets, I discovered a potential risk."
Old Zhou placed a stack of documents on his desk.
This is a copy of the land lease agreement.
"During Yunhai's early expansion, it leased about 35 mu of hillside land from several villages near Longding Mountain."
"Most of the contracts are for ten years, and they will start expiring one after another starting in the second half of next year."
"The problem was that the rent was very low at the time, with an annual rent of only one thousand to one thousand five hundred yuan per mu, which was far below the current market price."
Chen Jun picked up the contract, glanced at it briefly, and frowned, asking, "What about the renewal clause?"
"The wording in this regard is vague, only stating that under the same conditions, the original lessee has priority."
Old Zhou looked quite anxious: "But he didn't specify what the 'equal conditions' meant, which leaves a lot of room for controversy."
"What's more troublesome is that, according to my private visits, the villagers in these villages have a lot of grievances about the rent that Yunhai paid back then, and they all feel that they have been bullied."
"The village officials who were in charge of signing the contracts back then have basically been replaced."
"Now that the contracts are about to expire, these villagers generally hope to significantly increase the rent, and some even want to take it back directly so they can start their own small projects."
"In addition, in order to save money back then, Yunhai basically did not make any decent investment in infrastructure for these rented lands. They simply leveled the land and used it as a parking lot or for extensive planting."
The problem wasn't actually that complicated; it was simply a multiple-choice question presented to Chen Jun.
Either give up on renewing the lease, or you'll be taken advantage of and ripped off.
Either spend money to completely win over these villagers.
Although Hita's wealth is now vastly different from what it used to be, and even after acquiring Yunhai, he still has a significant surplus of funds.
Judging from what Lao Zhou said, the rent premium that the villagers are expecting is probably not just a little bit.
Chen Jun closed his eyes and fell into a brief moment of thought.
Clearly, this is not only a legacy issue of Yunhai, but also a strategic opportunity presented to us.
"If we talk about renewing the lease now, what would the market rate be?" he asked.
Old Zhou seemed a little hesitant: "Now, the annual rent for farmland with slightly better conditions around Longding Mountain is generally between 2,200 and 3,000 yuan per mu."
"If it's a plot of land near a main road, suitable for developing supporting facilities, it's not uncommon for prices to be over 4,000."
"These days, villagers have become shrewd. They generally demand price adjustments every three years, or directly request to participate in profit sharing."
This means that if the lease is to be renewed in Hita's name, the rent will inevitably be two to three times higher than it is now, and there is no telling when it will increase again.
It was almost a foreseeable event that the villagers would raise prices on the spot.
This caused Chen Jun to fall silent again. He vaguely sensed that this multiple-choice question might not only have the two solutions on paper.
"Moreover, this is just decentralized negotiation, talking to each company one by one, which is inefficient and full of variables."
Old Zhou added, "Although these plots of land are not large in size, their locations are crucial."
"Especially the Jinping Village area, which offers excellent views and is a superb vantage point overlooking the entire valley."
"If we ultimately fail to secure the project, or if it gets rented out by others for some miscellaneous small projects, it will inevitably affect our overall plan."
Chen Jun understood.
These scattered villages are like missing pieces in a jigsaw puzzle; they are few in number, but they all fall in crucial positions.
After much deliberation, he seemed to have made up his mind: "We can't just consider renewing the lease, nor can we only focus on a few plots of land."
"If we're going to talk, let's get straight to the point."
"We will start by using these land parcels whose contracts are about to expire as a breakthrough point to promote land transfer and integration on a larger scale."
Old Zhou was clearly a bit overwhelmed by this ambitious idea: "You mean, not only do we have to deal with these expiring contracts, but we also have to integrate the other surrounding villages?"
Although Hita is no longer the financially strapped company it once was, after acquiring the formidable Yunhai, it immediately embarked on such a large-scale land consolidation project...
This made Lao Zhou uneasy.
"This is a good opportunity to intervene legitimately under the pretext of handling expiring contracts."
"Once you give up or grit your teeth and renew the contract, there won't be another chance in the short term once the villagers have new plans."
Chen Jun spoke with certainty, clearly having grasped the key information: "If we want to integrate further later, the price we'll have to pay will be much more than just money."
"Although it is somewhat difficult to implement, fortunately we have enough time to operate."
"But... putting aside the specifics of implementation, what's the point of all this effort to consolidate the land?" Old Zhou pressed.
This concern is not unfounded. Given Hita's current size, it might be able to grit its teeth and take over these villages.
However, the subsequent development and utilization will require an astronomical amount of investment.
Chen Jun did not answer directly. Instead, he picked up the pen beside him and wrote a few large characters on a blank sheet of paper: "Prefectural-level Tourism Demonstration Site".
Old Zhou's eyes fell on the paper, and he instantly understood.
Being designated a state-level tourism demonstration zone is a highly valuable policy license and brand endorsement.
Once this is in place, all future project approvals can proceed through a streamlined process.
The government's special subsidies and supporting funds will continue to flow in.
All the initial investment is insignificant compared to the returns.
When conducting regional promotions later, they will also receive preferential treatment in terms of official resources.
This is highly persuasive in attracting high-end partners in the future.
"One of the most important hard requirements for a successful application is that you must drive the development of the local community and increase farmers' income."
"Acquiring a few plots of land piecemeal will not have a demonstrative effect."
"As for the specifics of how to acquire these lands, what kind of cooperation model to design, and how to balance the interests of all parties..."
"We'll have a meeting later to do a preliminary review of these issues."
Chen Jun dared to propose this bold and somewhat absurd idea, naturally because he had a certain amount of confidence.
At least he had already sketched out a rough blueprint in his mind, as well as several possible paths.
However, some specific implementation details still need to be filled in and improved.
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