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Via Electronic Mail <br /> <br />DATE: October 10, 2019 <br /> <br />TO: Jeremy Ogulnick <br /> 2525 MAIN ST LLC <br /> <br />FROM: James Simon, Principal <br /> <br />SUBJECT: SECOND ADDENDUM TO FISCAL IMPACT STUDY <br /> 256-UNIT ALTERNATIVE / 2525 MAIN STREET, SANTA ANA <br /> <br />In December 2017, RSG provided 2525 Main LLC a fiscal and economic impact analysis of a <br />517-unit multifamily residential development proposed for the northeast corner of Main Street and <br />Edgewood Lane, in the City of Santa Ana. The first addendum to the fiscal impact study was <br />prepared based on a reduced project scope of 347 units on July 11, 2019. The most recent <br />addendum study estimated that the 347 unit project would generate approximately $15.8 million <br />in net new general fund tax revenues to the City over a 25-year period. <br /> <br />RSG was recently informed that the developer is considering an even smaller project, roughly <br />equivalent to half the original project scope, consisting of 256 multifamily residential units. This <br />memorandum provides the approximate reduced impact of the project under this alternative, <br />resulting in the following impacts to the City over a 25-year period: <br /> <br />• Gross recurring General Fund revenues of $16.6 million; <br />• General Fund operating impacts of $5.0 million <br />• Net new General Fund impacts of $11.6 million. <br /> <br />Our forecast of these projected impacts accompanies this memorandum, which include <br />cumulative 25 year projections and the net present value assuming a 4% discount rate. <br /> <br /> <br />2-695