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MalnPlace Mall <br />Net Fiscal Impact and Economic Analysis <br />December2018 <br />Page 31 of 33 <br />6.0 Economic Impact and Job Benefits <br />6.1 IMPLAN Modeling <br />This analysis uses the IMPLAN (IMpact analysis for PLANning) econometric Input/output model <br />developed by the IMPLAN Group to quantify the economic Impact to the local region from <br />Project construction i renovation and ongoing operations. This proprietary model estimates the <br />economic benefits on the industries in a given geographic area based on known economic <br />inputs, such as construction costs. The model estimates direct, indirect, and induced benefits <br />expressed in terms of increased economic activity ("output"), earnings ("labor income"), and job <br />creation. <br />Direct Economic Benefits Direct benefits refer to the short-term business activity of general <br />contractors involved in Project construction i renovation and the ongoing business activities of <br />Project tenants. <br />indirect Economic Benefits: Indirect benefits will result when local firms directly Impacted by the <br />Project purchase materials, supplies or services from other firms. Examples would include <br />increased sales of building materials as a result of construction activity, and Increased sales of <br />inputs related to the business operations of tenants within the Project. <br />Induced Economic Benefits: Induced benefits relate to the consumption spending of employees <br />of firms that are directly or indirectly affected by the Project. These would include all of the <br />goods and services normally associated with household consumption (e.g., housing, retail <br />purchases, local services, eto.). <br />Inputs for the IMPLAN economic benefit analysis include the development budget provided by <br />the Developer and permanent on -site employment information estimated by Kosmont. The <br />permanent full-time employment estimates were derived from similar projects and industry <br />standard per -square -foot employment densities for corresponding land use types. <br />6.2 Construction Related Economic Benefits <br />During the construction period, the Phase 1 elements of the Project are expected to produce <br />approximately 6,500 jobs, $541 million In labor income, and $1.18 billion in economic output <br />across Orange County. Of these projections, approximately 3,900 jobs, $375 million In labor <br />income, and $777 million of economic output are expected to be captured within the City (see <br />Exhibit 6.2.1). <br />The analyses, projections, assumptions, and any examples presented herein are for <br />Illustrative purposes and are not a guarantee of actual andlor future results. Tax analyses <br />kos in ,„ are projections only. Actual results may differ from those expressed In this analysis. <br />75D-566 <br />