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Warner Redhill Mixed -Use Development Project August 18, 2020 Page 6 Topic Proposed Project Industrial Prototype could be absorbed by the market component as commercial uses are area due to the buildout anticipated limited by the M-1 zoning designation within a two-mile market area Development $65 million ($100/square foot of land) $17 million ($26/square foot of land) Feasibility/Residual Land Value (RLV) Economic Impact $498 million in one-time construction $76 million in one-time construction impacts, $58 million in annual impacts, $153 million in annual economic impacts, and 1,200jobs, of economic impacts, and 1,400jobs, of which 349 would be in the City which 638 would be in the City Fiscal Impact Annual net fiscal surplus of $1 million Annual net fiscal surplus of $525,000 ($2.5 million revenue but $1.5 million ($710,000 revenue but $185,000 expenditures), a 40 percent positive expenditures), a 74 percent positive ratio ratio Housing Opportunity Ordinance Compliance The City's inclusionary housing ordinance, known as the Housing Opportunity Ordinance (SAMC Sec. 41-1900 et seq.) applies to housing projects proposing five or more units that are also requesting an increase in allowable density or are located in certain sections of the City that were "up -zoned" to allow additional residential development pursuant to an overlay zone or after November 28, 2011. As the proposed project is located in a section of the City that does not presently allow construction of housing, the applicant's request is subject to the Housing Opportunity Ordinance (HOO) requirements of production of affordable housing or payment of in - lieu fees. Pursuant to SAMC Sec. 41-1904, the applicant has selected the option to pay in -lieu fees. Based on available figures for the project and under the current ordinance, the project will contribute an estimated $12,935,010 in in -lieu fees, which must be spent on production of affordable housing in the City of Santa Ana. Table 5 below illustrates the calculation methodology. Table 5: HOO In -Lieu Fee Calculation Estimated habitable square feet In -lieu fee per habitable square foot Final estimated total (habitable square feet multiplied by in -lieu fee 862,334 SF $15 $12,935,010 General Plan Amendment To facilitate the applicant's request, a general plan amendment is required to change the subject site's current General Plan land use designation from Professional and Administration Office (PAO) to District Center (DC). The applicant's requests is consistent with the changes required for similar projects that were on properties not zoned for such developments, such as The Heritage at 2001 East Dyer Road and Elan at 1660 East First Street. The DC land use designation allows medium- to high -intensity mixed -use developments such as the proposed project, and areas designated DC are typically located on the City's major thoroughfares. Residential developments within these areas are allowed at a density of up to 90 dwelling units per acre. The subject site's location at the intersection of Redhill Avenue and Warner Avenue, near the Costa Mesa (SR-55) Freeway, renders the DC designation appropriate for the proposed mixed -use development. Moreover, the subject site is in the vicinity of The Heritage, which was entitled in 2016, and the Tustin Legacy Specific 75C-6