Chapter 2: Fish Head Island Village
"Mayor Wang, I am the tenant of this property." Li Zhi turned and surveyed his surroundings before stating, "I am willing to accept the yearly rent of 30,000 yuan, on the condition that a ten-year lease agreement is signed."
"Ten years?" Mayor Wang displayed a disapproving expression on his face.
Li Zhi affirmed by nodding and stated, "Indeed, it will take ten years." Mayor Wang, this factory can be considered merely a piece of land. The usability of the deteriorating houses remains uncertain. In the future, I intend to engage in the construction of new buildings and acquire a set of equipment from external suppliers. The scale of investment is expected to be substantial, and the capital is unlikely to be recouped within a short period, such as one or two years. "Is it reasonable to anticipate my presence here for only a single year?"
After deliberation, Mayor Wang stated, "The rental rates will remain unchanged for a minimum of three years."
Li Zhi expressed with a smile, "Not only for three years, but even for one year at 30,000, I believe no one else would be as generous as me." In this instance, I am willing to provide an extra 5,000 yuan as a deposit to demonstrate my sincerity. If I do not rent for ten years, the 5,000 yuan deposit will be deemed as a penalty for breaching the contract. Mayor Wang, please take this into consideration. If acceptable, let us proceed with signing the contract at this time. I am able to promptly pay the rent. If not, I will search for alternatives elsewhere.
Mayor Wang, upon observing Li Zhi, recognized the seriousness of his demeanor. This parcel of land in the village had remained unused for an extended period. There were advertisements online, yet no individuals had visited the location. Upon their most recent visit, two individuals ultimately arrived, yet following an inspection of the premises, they expressed their willingness to only pay an annual rent of 5,000 yuan.
"Alright, ten years it is." It is essential to explicitly outline in the contract that in the event of a decision not to proceed with the rental agreement, a three-month notice must be provided to the village to ensure transparency and avoid any uncertainties. Otherwise, we reserve the right to shut down your factory. Mayor Wang stated.
Li Zhi carefully examined it and did not identify any issues. If he failed to establish the factory's operations this year, his prospects for future success would be limited. Sealing off the factory would be an acceptable course of action.
"Is it necessary for me to have a conversation about renting the factory with the village?" Li Zhi asked.
Mayor Wang asserted, "There is no need, as I have the ultimate decision-making authority in this matter."
Li Zhi and Mayor Wang proceeded directly to the village committee of Yutou Island. Two copies of the factory rental contract were produced, and they were subsequently stamped and signed by the village accountant. Li Zhi subsequently transferred 35,000 yuan directly to the village's account.
The total amount consisted of 30,000 yuan for the first year's rent and a 5,000 yuan deposit.
The factory rental contract stipulated a ten-year rental period, requiring annual payment of rent without any delays.
"Alright, young man, if you require any assistance in the future, feel free to approach me directly," Mayor Wang said cheerfully. The parcel of land had posed a significant challenge for the village; however, it was ultimately resolved. While the amount of 30,000 yuan may not have been substantial, it carried significant importance for the village collective and had the potential to yield considerable benefits.
After saying goodbye to Mayor Wang, Li Zhi returned to the factory from the Yutou Island village committee. Upon observing the ten-acre property, despite the yard being overgrown with weeds and appearing desolate, Li Zhi experienced a profound sense of excitement and a fervent sensation within his bones.
After securing the factory gate, Li Zhi returned to the city by car. The factory contained minimal items, and it was unlikely that anyone would enter even if it was not locked. However, this establishment now belonged to Li Zhi, and securing it with a lock provided him with a sense of increased safety.
Li Zhi intended to reside in the factory in the future; however, this was currently unfeasible. The limited number of factory structures exhibited drafts and were deemed unsuitable for occupancy. The property required renovations both internally and externally.
While considering the "Xingyun i9 Intelligent Factory System," Li Zhi still had to acquire machinery. Without the use of mechanical equipment, the 'Xingyun i9 Intelligent Factory System' envisioned by him would be rendered ineffective.
Before leasing the factory, Li Zhi engaged in a discussion with Mayor Wang. Mayor Wang noted that the majority of residents in their village, as well as in the neighboring villages, earned their livelihood through fishing. Consequently, the village had cultivated fishing resources, and Li Zhi had already deliberated on the initial product to be produced.
In accordance with the guidelines outlined in the 'Xingyun i9 Intelligent Factory System', Li Zhi proceeded to place an order online for a batch of machinery, completing the purchase by remitting the full payment.
The total cost of this batch of machines amounted to 49,800 yuan, inclusive of taxes.
After allocating 35,000 yuan for factory rent and 50,000 yuan for machinery and equipment, Li Zhi had a remaining balance of only 15,000 yuan. Before the equipment arrived, Li Zhi had several tasks to complete. He had limited time available, and if the plan unfolded as expected, the machines would be delivered in three days.
He opted to utilize a taxi service for his return journey to Yutou Island village due to the village's flourishing rural tourism sector, which enticed numerous urban residents to spend weekends there for short visits. Consequently, the village had several rural inns, and the lodging expenses were relatively affordable.
"Hey, are you in need of accommodation?" Upon entering a courtyard marked for lodging, Li Zhi encountered an elderly woman who was airing out quilts. Upon meeting Li Zhi, she greeted him with a smile and inquired if he required lodging.
"Madam, may I inquire about the cost of an overnight accommodation at your establishment?" Li Zhi posed a question.
"The cost is affordable at 40 yuan per night." "During weekends and holidays, characterized by increased visitor numbers, the peak season is observed, leading to a price increase to 100 yuan per day," she explained.
Is it 40 yuan? Li Zhi determined that an amount of 40 yuan per day was moderate in terms of expenses. The cost would total 1,200 yuan per month, which is approximately the same as the rent for a one-bedroom apartment in the city.
"Madam, is it possible for the long-term rental rates in this location to be more cost-effective?" Li Zhi asked.
"Is long-term rental an option?" "Are you not present for the purpose of engaging in play?" The woman appeared perplexed.
Li Zhi shook his head and explained that he had rented the old factory in the village with the intention of establishing a factory there. Currently, the factory is not habitable, and commuting to and from the city is inconvenient for me. "I am contemplating the possibility of leasing a property in this location for extended residential purposes."
"Have you leased the antiquated factory?" The woman examined Li Zhi thoroughly before inquiring, "In that case, young man, what is the duration of your intended stay here?"
"The duration of my stay is uncertain." Let us commence with a one-month lease agreement. Li Zhi responded.
"One month, indeed." After a brief pause, the woman responded with a smile, "I am able to offer you a room for rent at the rate of 800 yuan." "How does that sound to you?"
"May I inspect the room beforehand?" Li Zhi asked.
"What is the rationale for this decision?" "Join me to observe closely." The woman guided Li Zhi to the room. The structure was not diminutive; rather, it featured distinct rooms that were specifically constructed, with each room comprising a bedroom and a separate hall. The bedroom was furnished with a bed for sleeping, while the hall served dual purposes for washing and storage.
"I have prepared bedding for you, so you are welcome to stay overnight." "What is your opinion on the matter?" The lady inquired with a smile. She expressed a desire for Li Zhi to remain in the long term. Visitors did not always frequent the village, and her residence consisted of multiple rooms. With the exception of the summer vacation period, these rooms were usually not fully occupied. Even during periods of high demand, such as peak seasons and weekends, there may still be remaining items. Furthermore, their family's guesthouse was not the sole establishment in the village, leading to competition.
"Alright, I will rent it," Li Zhi agreed with a smile.
"You may be experiencing hunger or thirst." I have instant noodles, ham sausages, and mineral water available. "There is also a small restaurant nearby where meals can be obtained," the woman suggested.
A significant number of individuals in Yutou Island village bore the surname Wang, including a woman named Wang. Li Zhi demonstrated straightforwardness by promptly paying a month's rent to Wang without formalizing the agreement through a signed contract.
"Madam Wang, are there any individuals in our village who are currently unemployed?" Li Zhi inquired.
Madam Wang expressed confusion regarding Li Zhi's statement and inquired, "Idle people?" What is the definition of "idle people?"
Li Zhi smiled and clarified, "I am referring to individuals who are not occupied with tasks or responsibilities." "I am interested in recruiting individuals to undertake cleaning duties at my factory; however, I am unfamiliar with the residents of the village and am uncertain about who would be able to provide assistance."
"Ah, I consider myself one of the idle individuals," Madam Wang pondered briefly before smiling and remarking, "There are several idle individuals around, and a single person can be hired to tidy up the yard for 50 yuan per day." For the maintenance of such a spacious yard, a minimum of seven to eight individuals will be necessary for a full day's work. "If you trust me, I can help you find a few people."
Li Zhi expressed his delight by stating, "That is excellent." I will inconvenience you with that.
"It presents no difficulty whatsoever." "Please remain here while I search for some individuals to assist you," Madam Wang stated, as she turned to help Li Zhi in finding workers within the village.
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