BEYOND BROKEN WINDOWS

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BEYOND BROKEN WINDOWS

• Mani Nachimuthu
• FINOVA Capital Corporation

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Broken Windows Theory
If the first broken window in a building is not
repaired, then people who like breaking windows
will assume that no one cares about the building
and more windows will be broken. Soon the
building will have no windows - James Q. Wilson
George L. Kelling, The Atlantic Monthly, March
1982

• http//www.theatlantic.com/politics/crime/windows.
  htm
• If disorder goes unchecked, a vicious cycle begins

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Lessons Learned at Carowinds

• Before Shutdown
• FINOVA lacked hotel management expertise
• Engaged a poor management company
• After Shutdown
• Difficulty tracking / coordinating site
  activities (e.g., landscaping, security site
  inspections, broker visits, etc.)
• Damage / vandalism unnoticed for long periods
• Frequent problems with building systems (e.g.,
  air exchangers, pipe/roof leaks)
• Unsupervised prospective Buyer diligence

Basically, once the building was shutdown, the
asset started deteriorating rapidly
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Changes Implemented at Days Inn

• Prior to Foreclosure
• Obtained physical control (not legal control)
• Shutdown business operations immediately (no
  plan to operate)
• Implemented a comprehensive shutdown plan
  (orderly, organized, and structured)

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Shutdown Strategy Changes

• Coordinated with police, fire, newspaper,
  radio, etc.
• Implemented better contracts and control forms
• Removed all vegetation around the building

• Enhanced the level of security for perimeter
  fencing
• Increased exterior lighting
• Minimized vandalism by modifying inspection and
  reporting mechanisms
• Monitored / controlled HVAC and humidity levels
  inside the building
• Used additional dehumidifiers in summer

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Shutdown Strategy Changes

• Structured DD team site visits with the
  supervision of a contractor
• Filmed general building condition notably water
  intrusion and related damage
• Color coded electrical systems

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Monitoring After ShutdownContractor Inspections
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Schematic Diagram of Network
DSL
Modem
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Modem

• Pros
• Can be installed in most locations
• Inexpensive
• Low tech
• Low network security issues

• Cons
• Not suitable for real time video/recording
• Slow
• No remote administration
• Service disruption may require manual reset
• Potential for complicated/ expensive cabling

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DSL / Cable

• Pros
• Ideal for real time video
• Digital images
• Fast (accommodates motion recording)
• Remote administration/ troubleshooting
• Static IP address
• All the time connection

• Cons
• Availability
• Expensive
• Network security issues Long-term contracts

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Wireless

• Cons
• Availability
• Expensive
• Long-term contracts
• Security issues
• Limitations on always-on connections
• Dynamic IP address

• Pros
• High speed
• Wireless

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Other Applications

• Monitoring brokers and contractors
• Monitoring weather for snow removal etc.
• Environmental remediation sites
• Construction renovation
• Trust sites (factories)

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Financial Summary