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New office construction projects pay $3.72 per square foot in traffic reduction fees. For a 75,000
<br />square foot development, that is $288,000 to address traffic concerns. Construction tax is levied
<br />at $0.0192 per dollar valuation of the cost of construction of the building, which would mean
<br />$238,378 for a 75,000 square foot building, based on the 2008 Los Angeles County average
<br />construction cost for new multi -story office buildings of $165.54 per square foot as reported by
<br />Reed Construction Data. In addition, Building Permit fees for 75,000 square feet of new office
<br />space generate $75,058 for the city, $112,582 in Building Inspection fees and $74,799 in other
<br />inspection costs, including Code Compliance, Plan Check, Fire Department Plan Check and
<br />Public Works plan check fees. $124,155 would also be contributed as the 1% for public art
<br />component of the project.
<br />One Time Fees, City of Pasadena
<br />300
<br />250
<br />200
<br />150
<br />100
<br />50
<br />Comet. Traffic Bldg. Bldg. Other Public
<br />Tax Fee Permit Insp. Insp. Art
<br />■ City of Pasadena
<br />One Time Fees in
<br />$1000s - 75,000
<br />Square Feet of New
<br />Construction
<br />Property owners' business license fees average $15 per 1000 square foot for a commercial
<br />building, or $1,125 and an additional $17,000 in business license fees are collected from
<br />enterprises in the building. In total, for fiscal year 2007, business license fees generated
<br />$5,321,000 for the city's General Fund.
<br />Using accepted figures and average usage statistics, a 75,000 square foot building pays $206,500
<br />for electricity and $112,500 for other local utilities. That usage generates $40,000 in utility user
<br />taxes, not including taxes paid on telephone and other communications services.
<br />On average, that same 75,000 square foot office complex would generate approximately
<br />$15,000,000 annually in salaries and gross receipts of $37,500,000. The commercial operations
<br />within the complex can be reasonably estimated to generate an additional $26,250,000 in salaries
<br />paid to supporting workers throughout the region and $69,375,000 in additional gross receipts in
<br />the region.
<br />The 300 workers in the building can be estimated to spend a some amount of their wages in local
<br />businesses, as well. Conservatively, $792,000 can be expected to flow into the local economy as
<br />a result of casual spending by office workers in a 75,000 square foot complex. That is 50% of the
<br />$110 weekly per employee expenditure amount calculated by the International Council of
<br />Shopping Centers, which is based on research into office worker spending done by the
<br />International Council of Shopping Centers in 2004. The calculations included spending for
<br />lunches and dinners, retail shopping and gas, among other items purchased but not services.
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