Item 18 - Appeal Application Nos. 2023-02 and 2023-03 for Cabrillo Town Center project

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Appeal Application Fourth Street) October 3, 2023 Page 12 Nos. 2023-02 and 2023-03 for Cabrillo Town Center project (1901 E. public hearing. At the time this report was printed, no issues of concern were raised regarding the proposed development. The applicant also held two community meetings in conformance to the Sunshine Ordinance notification requirements. The first meeting was on held Monday, August 15, 2022 and the second meeting was held on Thursday, November 10, 2022. Both meetings were publicly noticed in the OC Register, posted on the City's website, and invitation mailers were sent to all addresses within a 1000-foot radius of the project site, as well as local community organizations. Participants asked questions about the project timing and construction impacts, affordability levels, project density, and about potential traffic and parking impacts to the community. Approximately 18-25 individuals attended both meetings. Materials from both meetings are posted to the project's City webpage for public viewing. FISCAL IMPACT AND ECONOMIC ANALYSIS The applicant retained the services of The Concord Group (TCG) to prepare a fiscal and economic impact analysis of the proposed project which included confirmation of the rent/revenue levels for the product offerings as well as the primary fiscal and economic benefits to the City from the proposed development (Exhibit 7). To validate the findings of the analysis, the City retained the services of the Economic and Planning Systems, Inc. (EPS) to peer review the study. TCG's analysis reveals positive economic and fiscal impacts from the proposed development due to the project site's location in a high -value, jobs -rich area surrounded by employment centers and mixed -use commercial developments. The report's conclusions about the proposed project are noted in Table 5 below. Table 5: Key Findings of the Proposed Project Topic Proposed Project Mixed -Use Market Due to the mixed -use environment and strong access and visibility, the rental Assessment apartments, for -sale townhomes, and ground floor retail are well positioned within the market. Fiscal Impact Analysis Based on a total construction budget of $249 million, the project is projected to generate a recurring revenue of approximately $22.8 million (which includes $10,452,020 in Property Tax, $4,574,958 in Property Tax in -lieu of Motor Vehicle Licenses fees, $3,210,515 in Utility Use Tax, $3,838,764 in Resident - Derived Sales Tax, and $717,990 in Retail Sales Tax) over the next 25 years after build -out period (three years of construction). Total City expenditures over the next 25 years after build -out are expected to be $14.5 million (which includes police, fire, and other services) resulting in net revenue of $8.3 million. Employment Impacts During construction, the project will generate approximately 1,913 jobs (1,266 direct, 323 indirect, and 323 induced). After completion, the project will maintain approximately 32 jobs (21 direct, 6 indirect, and 6 induced). Permit Fees The City will receive approximately $15.5 million in revenue from permit fees, AHOCO in -lieu fees, park impact fees, and other development impact fees. City Council 18 — 12 10/3/2023