Item 28 - Public Hearing - ZOA No. 20204-01 South Coast Technology Center

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ta www.FinanceDTA.com SECTION II INTRODUCTION those uses to be feasible on the Project site. However, since the Project proponent is constructing all three buildings on a speculative basis, the building uses presented in this Study are preliminary and cannot be guaranteed by the Project proponent or the City. C Approach to the Study The Study distinguishes between one-time impacts and permanent impacts. In evaluating these impacts, the Study quantifies both direct and indirect/induced economic impacts on the County and City. Direct economic impacts reflect the initial or first -round increases in jobs, earnings, and output, all of which occur directly on -site. Indirect/induced economic impacts are the secondary and other additional rounds of economic activity that occur as a result of the direct impacts and generally take place elsewhere within the County and City. The indirect impacts represent the economic activity, specifically the buying and selling of goods and services, of suppliers to the Project land use types analyzed. In this Study, suppliers to the Project consist primarily of wholesalers, maintenance and repair professionals, utilities' providers, real estate services, and employment and business support services. One-time impacts include benefits to the County and City that occur on a non -recurring basis as a result of construction and development activity, while permanent impacts refer to benefits that occur on a continuous basis year after year. The suppliers representing the indirect one-time impacts are mainly heavy industrial and construction suppliers for the actual development of buildings and facilities. The induced impacts represent the economic activity that results from household spending by employees of all companies directly and indirectly affected by the construction and operation of the land uses analyzed in this Study. For the purposes of determining impacts, the Study employs two standards that are frequently utilized in economic impact studies, as detailed below. C.1 North American Industry Classifications Indirect and induced impacts can occur throughout all industries of the economy and have been categorized using the North American Industry Classification System ("NAICS"). Adopted by the Office of Management and Budget COMB") in 1997 to replace the Standard Industrial Classification ("SIC") System, NAICS is a widely used system that classifies business establishments for the collection, analysis, and publication of statistical data in Canada, Mexico, and the United States. NAICS industries are identified using a 6-digit coding system to classify all economic activity into 20 broad sectors, five of which are mainly goods -producing sectors and 15 of which are services -producing sectors. This 6-digit hierarchical structure allows for the identification of nearly 1,170 industries. IMPLAN employs a sectoring scheme representing rollups of NAICS descriptions, with each sector having its own spending pattern derived from the U.S. Bureau of South Coast Technology Center Project May 13 2024 Economic Impact Study