75D - PH- MAIN PLACE TRANSFORMATION

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kosi4q... December 31, 2018 Mr. Oliver Robinson Centennial Real Estate Company RE: MalnPlace Market, Fiscal and Economic Benefit Analysis Kosmont & Associates, Inc. doing business as Kosmont Companies ("Consultant" or "Kosmont") Is pleased to present our Fiscal and Economic Benefit Analysis ("Analysis") for Centennial's proposed MalnPlace redevelopment plan ("Project") located at 2800 N. Main Street in Santa Ana, California. Background Centennial Real Estate Company, UC ("Developer") is seeking entitlements from the City of Santa Ana ("City") to develop a mixed -use project on the 50-acre Site. As part of the entitlement process, the City requested an analysis to examine retail market trends and to evaluate the net fiscal and economic impacts of the proposed Project. The proposed development will consist of apartments, hotel, retail and commercial office space. These elements as well as additional improvements are further described in the Analysis. Analysis Description The Analysis evaluates net fiscal revenues and expenditures for the City, as well as direct, indirect, and induced economic benefits to the local economy resulting from the development of the proposed project. The fiscal revenues were derived from estimating the various taxes associated with the Project Including property taxes (secured and unsecured), business taxes, franchise taxes, onsite and off -site retail sales taxes, and hotel transient occupancy taxes. The fiscal expenditures were derived from a per capita allocation ratio applied to estimated project occupants based on the 2016-17 Financial Report for the City of Santa Ana. In the most recent election, The City of Santa Ana voters approved Measure X, which will increase the retail sales tax rate for 10 years by 1.5%, beginning in 2019. The Initiative provides for a 0.5% reduction in 2029 where it will stay for 10 additonal years before expiring. 75D-537