Item 27 - Appeal Application Nos. 2020-03 and 2020-04 - Central Pointe Mixed-Use Development

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SG aETSER [BMMUNITIES $BLUER FUTURE$. June 3, 2020 Michael D. Reynolds, Principal THE CONCORD GROUP 369 San Miguel Drive, Suite 265 Newport Beach, CA 92660 Va72 C4LLETTE AVE "4 5414&W SUITE 350 wro@W+EBR5G_[CN4 IRVINE, CA 92M4 WERPSCkCOM DEVELOPMENT FISCAL IMPACT ANALYSIS CENTRAL POINTE MIXED -USE PROJECT, SANTA ANA Dear Mr. Reynolds: Via Electronic Mail RSG, Inc. ("RSG") was retained by The Concord Group ("TCG") to perform a fiscal and economic impact analysis for the development of a proposed mixed -use apartment and retail project ("Project") in Santa Ana, California. TCG obtained this analysis on behalf of the property owner/developer, Arnel & Waterford Property Company ("Developer"), which recently submitted an application for redevelopment of the subject property with the City of Santa Ana's ("City") Planning and Building Services Department. The Project site sits along 4th Street, between the Santa Ana (Interstate 5) Freeway (1-5") and Cabrillo Park Drive. The gross site area is approximately 8.35 acres, and is made up of four vacant parcels. If approved, the Project would consist of two five -story mixed -used buildings divided by a central park and open walk space. Attached to the buildings would be two seven -story parking structures. On the ground floor of each building would be a total 15,200 square feet of retail space. This letter describes our analysis, methodology, and anticipated recurring fiscal impacts resulting from development of the Project. As is typical at this stage, our conclusions could evolve as the application moves forward through the design and environmental review process. As is consistent with other Santa Ana projects analyzed by RSG, the construction period was assumed to be over three years. Part of the work would begin in 2021 (36 percent), with a majority taking place in 2022 (51 percent), leading to the remainder in 2023 (13 percent). The Project would open in the third construction year. Fiscal impacts from that year are reduced to reflect a partial year. Overall, RSG anticipates the following fiscal outcomes over a 25-year forecast period: Gross General Fund revenues of approximately $23.1 million, (net present value, discounted at 4 percent), including: o $10.3 million (net present value, discounted at 4 percent) in net new property tax revenues to the City General Fund. o A combined $3.6 million in sales taxes that includes $1.8 million from the City's base rate, as well as an additional $1.8 million from the City's Measure X additional tax rate through the sunset in 2039 (net present value, discounted at 4 percent).