75A - PH METRO EAST MIXED USE OVERLAY (MEMU)

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The net fiscal impact to the City General Fund would consist of costs and revenues resulting from buildout and stable occupancy of the different land uses on an annual basis. Fiscal Costs Standard fiscal analysis methodology estimates General Fund costs based on the estimated per service population costs at buildout. In this case, the service population is based on residents per unit and employees per square feet of the office and commercial uses. As a result, the service population and service costs of the existing MEMU and the extended MEMU are assumed to generally be the same since the allowable land use for each category is fixed; however, as already noted an evaluation of the development potential of the exiting and extended MEMU would be needed to conduct a full evaluation. The cost per service population is estimated from an analysis of the City's General Fund costs, including fire, police, public works, parks, recreation, and community services among others. The redevelopment of existing uses in the extended MEMU area could have positive or:negative net fiscal cost impacts. Fiscal Revenues Fiscal General Fund revenues are contingent on multiple factors. The' bulk of fiscal revenues would consist of general property taxes generated from the various land uses. Other select General Fund taxes and fees such as sales and use taxes, property transfer taxes, property tax in lieu of Vehicle License Fees (VLF), business license taxes, and franchise fees comprise'the components of the fiscal revenue estimate. The majority of revenues will be contingent on an estimate of the valuation of the built out allowable land uses and the associated property tax, minus the development that is removed through redevelopment. These valuations must be estimated through analysis of market factors such as supportable rents and/or for sale costs of the different land uses over time and at buildout. Other revenues such as sales tax are linked to factors such as household, expenditures captured locally, sales Per square foot of retail space supported by,non-residents (which may vary depending on the retail development's location and market orientation), and spending in the community by residents, employees, and visitors. Again, a preliminary evaluation of the proposal suggests that an extension of the MEMU would generally result in similarfiscal revenues. Substantial variations in fiscal revenues would likely only result if the extension of the MEMU made achieving full buildout more or less likely, and at a low opportunity cost. Additionally, redevelopment of existing uses in the MEMU extension area could result in net fiscal costs or benefits in comparison with new uses depending on their current economic performance and value. Preliminary Fiscal Net Impact Assessment Summary There is a reasonable probability that the MEMU extension would not create a meaningfully different net fiscal impact in comparison to the current MEMU. Further assessment of the general feasibility of the allowable development capacity potential of the existing MEMU versus the proposed extended MEMU would be necessary to arrive at a quantitative estimate of the net fiscal impact. 75A-314