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The following table summarizes the estimated fiscal impacts attributed to the Project. Year -by
<br />year projections are included as an exhibit at the end of this report.
<br />NET NEW RECURRING GENERAL FUND FISCAL IMPACTS
<br />2525 N MAIN STREET, SANTA ANA
<br />Less City Expenditures $ (10,008,990) $ (5,446,563)
<br />NET NEW REVENUE TOTAL $ 23,513,206 $ 13,590,997
<br />Sources: City of Santa Ana, County of Orange, California State Board of
<br />Equalization, ESRI Business Analyst Online, and RSG, Inc.
<br />PROJECT DESCRIPTION
<br />The Project site is located at 2525 N. Main Street in Santa Ana, across from the Orange County
<br />Discovery Science Center at the northeast corner of Main Street and Edgewood Road. The P
<br />(Professional) -zoned site is approximately 5.9 acres and is currently developed as a single two-
<br />story office building and paved parking lot. The building has been vacant for several months,
<br />following the closure of the data center operated by Wells Fargo about a year ago.
<br />After many years of lower rents and oversupply, Orange County is beginning to see an increase
<br />in demand and rents for office space, with some first-tier areas (such as Irvine and Newport
<br />Beach) beginning to experience new construction of Class A properties. However, this has not
<br />yet occurred in central Orange County and Santa Ana, where rents are not sufficiently high to
<br />support the cost of construction.
<br />Shortly after acquiring the office building from the Trust that held it for many years, Wells Fargo
<br />listed the property for sale in early 2017. By August 2017, the Developer purchased the property
<br />for purposes of redevelopment into luxury apartments. The Developer is currently developing
<br />another (larger) apartment and commercial project on Dyer Road, just west of Red Hill Avenue in
<br />Santa Ana in the location of a former industrial building. Central Orange County has seen a recent
<br />growth of infill luxury and market rate apartment construction, particularly in areas where office
<br />and other commercial uses are no longer viable. In this case, the Project entails development of
<br />517 units of apartments, an 8 -story, 910 -space parking structure, and an amenity deck
<br />comparable to what is found among many newer apartment complexes built in area.
<br />11f12/17 75E-340 34
<br />25 -Year Recurring
<br />Revenues
<br />Revenue Category
<br />Nominal
<br />NPV 4.0%
<br />Property Tax
<br />$ 16,461,099 $
<br />9,439,388
<br />Property Tax In -Lieu
<br />10,730,966
<br />6,153,523
<br />Utility User Tax
<br />3,150,459
<br />1,714,376
<br />Residential Derived Sales Tax
<br />2,554,468
<br />1,390,058
<br />Business Tax
<br />625,203
<br />340,215
<br />Construction Business Tax
<br />-
<br />-
<br />Construction Sales Tax
<br />-
<br />-
<br />Total Revenues
<br />$ 33,522,196 $
<br />19,037,560
<br />Less City Expenditures $ (10,008,990) $ (5,446,563)
<br />NET NEW REVENUE TOTAL $ 23,513,206 $ 13,590,997
<br />Sources: City of Santa Ana, County of Orange, California State Board of
<br />Equalization, ESRI Business Analyst Online, and RSG, Inc.
<br />PROJECT DESCRIPTION
<br />The Project site is located at 2525 N. Main Street in Santa Ana, across from the Orange County
<br />Discovery Science Center at the northeast corner of Main Street and Edgewood Road. The P
<br />(Professional) -zoned site is approximately 5.9 acres and is currently developed as a single two-
<br />story office building and paved parking lot. The building has been vacant for several months,
<br />following the closure of the data center operated by Wells Fargo about a year ago.
<br />After many years of lower rents and oversupply, Orange County is beginning to see an increase
<br />in demand and rents for office space, with some first-tier areas (such as Irvine and Newport
<br />Beach) beginning to experience new construction of Class A properties. However, this has not
<br />yet occurred in central Orange County and Santa Ana, where rents are not sufficiently high to
<br />support the cost of construction.
<br />Shortly after acquiring the office building from the Trust that held it for many years, Wells Fargo
<br />listed the property for sale in early 2017. By August 2017, the Developer purchased the property
<br />for purposes of redevelopment into luxury apartments. The Developer is currently developing
<br />another (larger) apartment and commercial project on Dyer Road, just west of Red Hill Avenue in
<br />Santa Ana in the location of a former industrial building. Central Orange County has seen a recent
<br />growth of infill luxury and market rate apartment construction, particularly in areas where office
<br />and other commercial uses are no longer viable. In this case, the Project entails development of
<br />517 units of apartments, an 8 -story, 910 -space parking structure, and an amenity deck
<br />comparable to what is found among many newer apartment complexes built in area.
<br />11f12/17 75E-340 34
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