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Item 27 - Appeal Application Nos. 2020-03 and 2020-04 - Central Pointe Mixed-Use Development
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Item 27 - Appeal Application Nos. 2020-03 and 2020-04 - Central Pointe Mixed-Use Development
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Agenda Packet
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Clerk of the Council
Item #
27
Date
1/19/2021
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Table 7 <br />BUSINESS -DERIVED SALES TAX REVENUE <br />Central Pointe, Santa Ana <br />Sales at Buildout <br />General Retail $ 3,800,000 <br />City Share of Sales Tax 1 % <br />Measure X (2018) Additional Sales Tax' 1.5% <br />Business -Derived Sales Tax Revenues Annual Estimate <br />(Base Rate) $ 41,524 <br />(2018 Addition) $ 62,285 <br />(2029 Decrease to 1%) $ 51,069 <br />Source: California State Board of Equalization, RSG, Inc. <br />' Measure X additional sales tax decreases from 1.5% to 1 % in 2029 <br />For the City base rate, combined resident and business sales taxes at buildout would be an <br />estimated $90,244. Measure X combined taxes would be $135,366. Both are adjusted for inflation <br />during the construction period and for the partial year at opening. This provides for a 25-year total <br />of $1.8 million from the base rate and $1.8 million from Measure X (net present value, discounted <br />at 4 percent). <br />Business Tax <br />The City assesses a business tax on retail stores and residential property management <br />companies. Table 8 below showcases the new revenues from the Project. Retail business taxes <br />are assessed based on annual sales while management company business taxes are assessed <br />based on unit count. The combined business tax revenues are an estimated $24,048 at buildout, <br />or $493,901 over 25 years (net present value, discounted at 4 percent). <br />Table 8 <br />BUSINESS TAX REVENUES <br />Central Pointe, Santa Ana <br />Multifamily Residential Tax $ 24,739 <br />Retail Tax 2,902 <br />Full -Year Business Taxes at Buildout $ 28,786 <br />Partial -Year Business Taxes at Buildout $ 24,048 <br />Sources: City of Santa Ana, RSG, Inc <br />
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