Question-and-Answer Session
Operator
(Operator instructions) We'll go first to Scott Stember at Sidoti & Company.
Scott Stember – Sidoti & Company
Good afternoon.
Kay Toolson
Good afternoon, Scott.
Scott Stember – Sidoti & Company
Could you talk about how much you paid for the new lots in outdoor resorts in Michigan and maybe just talk about what the investment is again for the three new lots that you have right now?
John Nepute
Right now, that is basically a piece of raw land that we closed on. We're in the process of constructing. We should have it substantially completed in August, at least for the first 65 lots or so. But, to your point about what the acquisition price was, it was around $2.5 million.
Scott Stember – Sidoti & Company
That was for Michigan?
John Nepute
Correct.
Scott Stember – Sidoti & Company
Okay, and capacity utilization, obviously must have been down this quarter and could you talk about some of the steps that you're taking, whether it's days or weeks off to bring your production levels down?
Marty Daley
Yes, I think part of what we were looking at there, we were closer to around 50% utilization, with the actual run rates per day. But, as we mentioned, kind of the effective production output would have put efficiencies down in the 43% to 45% range in motorized and with that, to achieve that in first quarter, we took off two complete weeks and we had some other -- we only work four-day weeks to get to that production output. So we're doing a combination of things this quarter, which would be similar to that where we'll take some days off, but then also adjust some of the run rates, so that we're in sync with the output.
Scott Stember – Sidoti & Company
Okay, and on the Towable side, you said you've seen strengthening in orders over the last five to six weeks. You mentioned that part of it could be just new product introductions. Do you think some of it has to do industry-wide phenomenon, or is it just company specific?
John Nepute
I'm not sure. It's been fairly steady in terms of our order picture. We haven't adjusted our run rates really at this point, although there's a potential if it will hold for a few more weeks, that we could in fact raise our Towable production rates just a bit. We would like to think that, yes, it's impacting the overall market. I'd like to think I'm rising with everyone else, as opposed to being the lone person out there.
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