75D - PH- MAIN PLACE TRANSFORMATION

Home Browse Search

MalnPlaoe Mall Net Fiscal Impact and Economic Analysis December 2018 Page 23 of 33 Exhibit 5.2.2: Property Tax ln-Lleu of VLF Phase 1 Pull'Bufldou Total Estimated Assessed Value _Total Assessed Value within City (2015-16) $693.329,000 $23,886,126 355 $1,35%330,000 $23,886.126 355 Percent Share! Increase in Assessed Value Estiinoted Property Tax In -Lieu of VLF 2.9026% $30,966,459 5.6532% $30,966,459 incremental Project Tax In -Lieu of VLF $898,800 $1,7%600 auuice. may or oama Ana, Cemenmai Heat tstate Company, orange County Assessor's Office (2018) 5.2.3 Real Property Transfer Tax The City of Santa Ana- generates approximately 0.055% of gross sales proceeds in transfer taxes upon the salelre-sale of properties. The analysis assumes that the Developer will retain ownership of the project for an extended period of time•, therefore, the analysis does not include any property transfer taxes. 5.2.4 Safes Tax (On-Site/Direct) The proposed project includes five major retail/commercial components, which are expected to generate significant on -site sales taxes. As seen In Exhibit 6.2.4, these include 75,000 SF of vacant spaces, 30,000 SF for food hall restaurants, 65,000 SF of new retail, a 50,000 SF theater, and a 100,000 SF Edu-tainment Center. Taxable sales for each of these components vary based on current industry standards/projections. In addition to sales tax, the City receives use tax revenues, which are levied on shipments into the State and on construction materials for new development not allocated to a sites location. Use tax is allocated by the BOE to counties and cities based on proportion of countywide and statewide direct taxable sales. Use tax revenues to the City are estimated at an additional 13% percent of point -of -sale taxable sales. Based on the preceding, Full Buildout is expected to result in approximately $127 million in annual taxable sales, which would result in an estimated $1.4 million in sales and use tax revenues for the City. This excludes any future retail development that may is permitted. In the most recent election, 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. The analyses, projections, assumptions, and any examples presented herein are for kosmg 1,,,,-Illustrative purposes and are note guarantee of artual and/or future results. Tax analyses are projections only. Actual results may differ from those. expressed in this analysis, 75D-558