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IMPLAN combines a set of extensive databases concerning economic factors (including wage, labor, and commerce data from local, state, and federal government sources) and demographic statistics with a highly retlned and detailed system of modeling software. The model accomplishes this by identifying direct impacts by sector, then developing a set of indirect and induced impacts by sector through the use of industry -specific multipliers, local purchase coefficients, income -to -output ratios, and other complex factors and relationships. The customized Input-output model will calculate the economic impact resulting from the direct expenditures made by the nonprofit arts and cultural organizations and their audiences, as well as the economic impact of those dollars as they are being re -spent within the City of Santa Ana's economy, How can a dollar be "re -spent?" Consider the example of a theater company that purchases a five -gallon bucket of paint from its local hardware store for $100—a very simple transaction at the outset, but one that initiates a complex sequence of income and spending by both individuals and other businesses. Following the paint purchase, the hardware store may use a portion of the $100 to pay the salesclerk who sold the bucket of paint, The salesclerk then respends some of the money for groceries; the grocery store uses some of the money to pay its cashier; the cashier then spends some of the money for rent; and so on. The hardware store also uses some of the $100 to purchase goods and services from other businesses, such as the local utility company, and then to buy a new bucket of paint from the paint factory to restock its shelf. Those businesses, in turn, respend the money they earned from the hardware store to buy goods and services from still other local businesses, and so on. Eventually, the last of the $100 is spent outside of the community. It is considered to have 'loaked' out of the community, and it no longer has a local economic impact. The total economic impact describes this full economic effect, starting with the theater's initial paint purchase and ending when the last of the $100 leaks out of local economy. It is composed of the direct economic impact (the effect of the initial expenditure by the theater), as well as the indirect and induced economic Impacts, which are the effects of the subsequent rounds of spending by businesses and individuals, respectively. Interestingly, a dollar ripples very differently through each community, which is why an input- output model will be customized specifically for the City of Santa Ana. TIIE REQUIREMENTS Of, STUDY PARTICIPATION This research study will employ a national -state -local partnership strategy —one that we have used successfully for more than 25 years. This means that both Americans for the Arts and the City of Santa Ana are required to accomplish certain tasks to ensure that the project is a success. It is also the primary reason that the project cost -sharing fee is so reasonable when compared to other sources of customized research with the same level of custornization. There are five primary requirements of each of our Arts & Economic Prosperity 6loeal study partners. Please consider their potential impact on the City of Santa Ana and your arts community. This contract is not considered complete and approved unless ALL FIVE REQUIREMENTS To request a web -based contract via DocuSign, contact Bert Davidson (bavidson@artsusa org). Alternatively, you may print/complete this document, scan/save it, and return it via email for approval.