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Richard M. Gollis, Principal THE CONCORD GROUP June 3, 2020 Page 8 revenue increases based on assessed value growth in a jurisdiction, so estimated revenues are based on changes in assessed value created by the Project. Based on the City's 2019-20 secured property tax roll, the total assessed value of all Property in the City is $26.3 billion. When adjusting for inflation during the construction period, the Project's net new assessed valuation ($79.5 million) increases the City's assessed value by 0.33 percent. The MVLF increase from the Project is calculated from the percent increase in assessed value. This gives us $107,186 in estimated In -Lieu MVLF revenues at build -out (see Table 4). As depicted above, the City is expected to receive $2 million (net present value, discounted at 4 percent) in In -Lieu MVLF revenues through 2047. Table 4 PROPERTY TAX IN -LIEU OF MOTOR VEHICLE LICENSE FEES 4th and Mortimer 2019-20 City Assessed Value $ 26,369,891,977 Project Assessed Value' 86,420,908 City Assessed Value with Project 26,456,312,885 Increase in Assessed Value 0.33% Santa Ana 2019-20 VLF 32,705,877 Santa Ana VLF with Project 32,813,063 Annual Estimate Property Tax In -lieu Revenue $ 107,186 Source: County of Orange Auditor Controller, RSG, Inc. ' Inflated pursuant to the construction schedule Utility User Tax The City assesses a utility user tax of 5.5 percent on electricity, gas, water, and telephone revenues generated within Santa Ana. Utility costs were estimated by RSG based on a review of similar projects and utility costs in Orange County. Residential utility expenditures were assumed to be: $104 per month for phone, $57 for electricity, $23 for gas, and $30 for water. This amounts to $2,890 annually in 2020 dollars. From the Developer's estimates of 3,847 square feet of restaurant and 7,514 square feet of retail, RSG was able to use US Energy Information Administration ("EIA") estimates to extrapolate commercial utility expenses. Retail establishments average around $1.50 per square foot in energy expenses, while restaurants average $4.44 per square foot. Based on these assumptions, RSG estimates that utility user tax revenues generated by the Project, reduced to account for a partial year, will be an estimated $24,333 at buildout. This adds up to $499,754 (net present value, discounted at 4 percent) over the 25-year projection period (see Table 2). 75C-452