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THIF CONCORD GROUP <br />RESIDENT -DERIVED SALES TAX <br />The additional residential households produced by the Project are expected to result in <br />increased sales for retailers and restaurants. Within a 5-mile radius of the site, ESRI estimates <br />households' expenditures based on taxable and non-taxable sales. TCG estimates <br />approximately $29,000 per household. Due to proximity to other retail centers in <br />neighboring cities, TCG projects 50% of shopping will be done within the Santa Ana city <br />limits. In 2018, Santa Ana residents approved a local transaction and use tax in the City, <br />increasing the sales tax from 7.75% to 9.25% until 2029 and then to 8.75% until 2039, <br />when the additional tax will expire. The resident -Derived Sales Tax Revenues are projected <br />to be $3.8 million, or $1.8 million in 2022 dollars. For a more detailed projection, see <br />Appendix 4. <br />Table 5: Resi-Derived Sales Tax Revenue <br />City Department <br />Taxable Household Expenditures (50%) <br />Number fo Households <br />Estimated Transactions within Santa Ana <br />City share of Sales Tax <br />2022-2028 Measure X Inc. Tax Rate <br />2029-2039 Measure X Inc. Tax Rate <br />Resi-Derived <br />Revenue <br />$14,500 <br />507 <br />$262,232,61 1 <br />1.00% <br />1.50% <br />1.00% <br />Cumulative TOT $3,838,764 <br />Cumulative TOT, 2022 Dollars $1,785,614 <br />RETAIL SALES TAX <br />The development will include 6,000 square feet of ground floor retail space. Conservatively, <br />TCG projects approximately $250 of sales annually per square feet, resulting in $1.38 <br />million dollars in retail sales. Due to the local transaction and use tax described above, sales <br />tax increases from 7.75% to 9.25% until 2029 and then to 8.75% until 2039, when the <br />additional tax will expire. The Sales Tax Revenues from the development are projected to be <br />$718K, or $328K in 2022 dollars. For a more detailed projection, see Appendix 5. <br />Table 6: Retail Sales Tax <br />Tax Rate <br />Dollars <br />Sales Revenue (2022) <br />$1,375,000 <br />Cumulative Sales Generated <br />$47,672,1 1 1 <br />Cumulative Sales Generated (2022 Dollars) <br />$25,442,648 <br />City share of Sales Tax <br />1.00% <br />2022-2028 Measure X Inc. Tax Rate <br />1.50% <br />2029-2039 Measure X Inc. Tax Rate <br />1.00% <br />Cumulative TOT $717,990 <br />Cumulative TOT, 2022 Dollars $328,002 <br />Retail Sales assume $250 per square feet <br />FRH Realty LLC <br />22179.01 Santa Ana, CA <br />April 2023 <br />City Council 18 — 386 10/3/2023 <br />