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f 5 (_ "I MR COMMYMITI[! 1101-9EYFl REi June 3, 2020 Richard M. Gollis, Principal THE CONCORD GROUP 369 San Miguel Drive, Suite 265 Newport Beach, CA 92660 17877 01.1-EiTE AVE. 714 541 4W15 SUNFE 450 LN"WEBRSO.[om IRVINE. CA 97674 WE BRSG.COM DEVELOPMENT FISCAL IMPACT ANALYSIS 4TH + MORTIMER MIXED -USE PROJECT, DOWNTOWN SANTA ANA Dear Mr. Gollis: Via Electronic Mail RSG, Inc. ("RSG") was retained by The Concord Group ("TCG") to perform a fiscal and economic impact analysis for the development of a proposed mixed -use apartment and retail project ("Project") in downtown Santa Ana, California. TCG obtained this analysis on behalf of the property owner/developer, Red Oak Investments ("Developer'), which recently submitted an application for redevelopment of the subject property with the City of Santa Ana's ("City") Planning and Building Services Department. The Project site sits along 41h street covering two blocks divided by Mortimer Street for a total Project area of 2.72 acres. If approved, the Project would consist of one mixed -used building and one residential building, each on their own block. Currently, Northgate Market sits within the proposed development site, and an automotive repair shop sits adjacent to it. This letter describes our analysis, methodology, and anticipated recurring fiscal impacts resulting from development of the Project. As is typical at this stage, our conclusions could evolve as the application moves forward through the design and environmental review process. As is consistent with other Downtown Santa Ana projects analyzed by RSG, the construction period was assumed to be over three years. Part of the work would begin in 2021 (36 percent), with a majority taking place in 2022 (51 percent), leading to the remainder in 2023 (13 percent). The Project would open in the third construction year. Fiscal impacts from that year are reduced to reflect a partial year. RSG anticipates the following fiscal outcomes over a 25-year forecast period: $2.9 million (net present value, discounted at 4 percent) in net new property tax revenues to the City General Fund. A combined $2 million in sales taxes that includes $1 million from the City's base rate, and $987,230 from the City's Measure X additional tax rate inclusive of the sunset date (net present value, discounted at 4 percent). A total of $7.8 million (net present value, discounted at 4 percent) in additional City General Fund revenue, including construction period revenues, recurring site -specific tax, and other Project impacts. Over the same 25-year period, the City General Fund expenditures associated with the Project total $2.4 million (net present value, discounted at 4 percent) IRVINE IN, BERKELEY • VISTA 75C-445