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As a part of the application for development with the City, the developer has been asked to provide <br />a fiscal impact analysis of the proposed Project. The City's fiscal concerns are reasonable given <br />the slow recovery of the Santa Ana General Fund coming out of the Global Financial Crisis. <br />FISCAL IMPACTS METHODOLOGY <br />Property Tax Revenue <br />RSG utilized the current City property tax share as reported by the County of Orange ("County") <br />Auditor Controller to estimate the City's share of property tax that would result from development <br />of the Project. The property tax revenues presented in this report are net of any current revenues <br />received from the site (estimated at $32,300 in 2017-18). The net new assessed value as a result <br />of the Project development is approximately $218 million (2017$). The estimated annual property <br />tax revenue upon completion of construction is approximately $415,200 (2017$). <br />RSG assumed 2 percent inflation on property tax revenues over the 25 -year projection period, <br />resulting in $16.5 million ($9.4 million in 2017$) in net new property tax revenues for the City <br />General Fund. Please note: discounted projections throughout this report reflect the net present <br />value, or NPV, at a 4 percent discount rate. <br />PROPERTY TAX REVENUE <br />2525 N MAIN STREET, SANTA ANA <br />Current Valuation $ 16,955,000 <br />Proposed Project 235,200,000 <br />Net New Value $ 218,245,000 <br />City Property Tax Rate 0.190255615 <br />Property Tax Revenues $ 415,223 <br />Source: County of Orange Auditor Controller, RSG, Inc. <br />Property Tax in -lieu of Motor Vehicle License Fee Revenue <br />The City receives property tax in -lieu of motor vehicle license fee ("MVLF") revenues, as <br />calculated by the County Auditor -Controller. Property tax in -lieu is based on a growth rate in <br />assessed value between 2004-05 and the current year. The City's growth rate during this period <br />is approximately 48.417 percent. The growth rate is then applied to the City's MVLF 2004-05 base <br />year value of $19.8 million. As a result of these calculations, the City's 2017-18 property tax in - <br />lieu is estimated as $29.4 million. The Project is expected to increase the City's assessed value <br />by approximately 1.06 percent, resulting in a like increase in net new property tax in lieu of MVLF <br />revenues of approximately $312,700, or $10.7 million ($6.2 million in 2017$) over the 25 -year <br />projection period. <br />11/12/17 75E-341 35 <br />