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<br /> <br /> <br /> <br />August 30, 2019 Via Electronic Mail <br /> <br />Michael Reynolds, Principal <br />THE CONCORD GROUP <br />369 San Miguel Drive, Suite 265 <br />Newport Beach, CA 92660 <br /> <br />4TH + MAIN <br />MIXED-USE PROJECT, DOWNTOWN SANTA ANA <br />DEVELOPMENT FISCAL IMPACT ANALYSIS <br /> <br />Dear Mr. Reynolds: <br /> <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 mixed-use apartment and retail project <br />(“Project”) in downtown Santa Ana, California. TCG obtained this analysis on behalf of the <br />property owner/developer, Toll Brothers Apartment Living (“Developer”), which recently applied <br />for redevelopment with the City of Santa Ana’s (“City”) Planning and Building Services <br />Department. <br /> <br />The Project site spans several parcels on either side of 5th Street for a total Project area of 2.78 <br />acres. The parcels are located at 111 East 4th Street, 117 East 5th Street, and 119 East 5th <br />Street. The larger site is the vacant First American office building property, which is 2.31-acres, <br />and the smaller site is 0.47-acres. The Developer proposes to demolish the existing First <br />American office building and construct one seven-story residential apartment building surrounding <br />a two-story parking structure and including a retail component on the 4th Street side. On the <br />smaller parcel, the developer proposes one five-story residential apartment building with parking <br />on the first level (see Figure 1 on page 12). The Project consists of 220 units for both buildings, <br />209 market rate and 11 affordable units restricted to very-low income. <br /> <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 through the design and environmental review process. <br /> <br />In addition to the developer’s estimated $4.0 million in City fees, RSG anticipates the following <br />fiscal outcomes over a 25-year forecast period, presented in both nominal and real value (2019$) <br />discounted at a 4 percent discount rate: <br /> <br /> Approximately $16.9 million ($9.7 million in 2019$) in additional City General Fund <br />revenue, including construction period revenues, recurring site-specific tax, and other <br />Project revenues. <br /> <br /> Approximately $167.1 thousand (2019$) in property tax revenue per year, as opposed to <br />the current $11.1 thousand (2019$). The site development would generate approximately <br />$6.7 million ($3.8 million in 2019$) after 25 years. <br /> <br />1- 141