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December 7, 2017 Via Electronic Mail <br />John Shumway, Principal <br />THE CONCORD GROUP <br />369 San Miguel Drive, Suite 265 <br />Newport Beach, CA 92660 <br />2525 N. MAIN STREET, SANTA ANA DEVELOPMENT <br />FISCAL IMPACT ANALYSIS <br />Dear Mr. Shumway: <br />RSG, Inc. ('RSG') was retained by The Concord Group ("TCG') to perform a fiscal and economic <br />impact analysis for the development of a proposed 5.9 -acre multi -family unit project located at <br />2525 N. Main Street ('Project') in the City of Santa Ana ("City"). TCG obtained this analysis on <br />behalf of the property owner/developer, 2525 N. Main St LLC ("Developer"), who recently applied <br />for redevelopment with the City's Planning and Building Services Department. The Developer <br />proposes to demolish the existing two-story vacant office building and construct several five -story <br />type III -A residential apartment buildings (totaling 517 market -rate units) surrounding an 8 -story <br />type I -A parking structure with an amenity deck, pool, gym, meeting space, and other resident - <br />serving uses (see Figure 1 on page 9). <br />This letter describes our analysis, methodology, and anticipated recurring fiscal impacts resulting <br />from development of the Project. As is typical at this stage, our conclusions could evolve as the <br />application moves forward though the design and environmental review process. <br />In brief, RSG anticipates the following fiscal outcomes over a 25 -year forecast period, presented <br />in both nominal and real value (2017$) discounted at a 4 percent discount rate: <br />• Approximately $33.5 million ($19.0 million in 2017$) in additional City General Fund <br />revenue, including construction period revenues, recurring site-specific tax, and other <br />Project revenues. <br />• Approximately $415,200 (2017$) in property tax revenue per year, as opposed to the <br />current $32,300 (2017$). The site development would generate approximately $16.5 <br />million ($9.4 million in 2017$) after 25 years. <br />• Over the same 25 -year period, the City General Fund expenditures associated with the <br />Project total $10.0 million ($5.4 million in 2017$). <br />• Asa result, the net new General Fund revenue is projected to be approximately $23.5 <br />million ($13.6 million in 2017$) from the acquisition and development of the Project. <br />1112)17 75E-339 33 <br />