|
ECONOMIC IMPACT ANALYSIS:
<br />METHODOLOGY:
<br />The economic impact analysis utilized Rims II multipliers to estimate the employment and
<br />economic output impacts of the Project by using the corresponding industry multiplier to calculate
<br />the direct, indirect, and induced effects of developing the Project. To estimate the Prolect's
<br />economic impact during the construction phase (construction impacts), TCG multiplied the
<br />construction industry multiplier by the construction cost of each product type to segment the
<br />employment and economic output. During the construction period, the Project is expected to
<br />produce 1,266 direct jobs and a total of 1,913 jobs including indirect and induced jobs. The
<br />Project will also produce an economic output of $444 million from the construction of the Project.
<br />In order to measure the permanent employment and economic impacts of the Project we must
<br />estimate the impacts from ongoing business operations after construction is complete. Using the
<br />corresponding Rims II multipliers for industry sectors regarding hotel and
<br />apartment/condominium operations TCG was able to estimate 21 direct employees will be
<br />generated from ongoing operations and a total of 32 total employees including indirect and
<br />induced employees. An estimated $8.7 million of economic output will be generated from
<br />ongoing operating expenses on a yearly basis (2022 dollars).
<br />Table 8: Employment and Economic Outputs: Construction and Permanent
<br />Costs Apartments/Retail Townhomes
<br />Construction Costs $220,759,544 $28,118,222
<br />Operating Expenses $4,523,798
<br />Note: Based on proforma assumptions, 2021 dollars
<br />Tota I
<br />$248,877,766
<br />$4,523,798
<br />Construction Impacts
<br />Direct
<br />Indirect
<br />Induced
<br />Total
<br />Employment
<br />1,266
<br />323
<br />323
<br />1,913
<br />Apartments
<br />1,123
<br />287
<br />287
<br />1,696
<br />Townhomes
<br />143
<br />37
<br />37
<br />216
<br />Economic Output
<br />$248,877,766
<br />$97,734,299
<br />$97,734,299
<br />$444,346,363
<br />Apartments
<br />$220,759,544
<br />$86,692,273
<br />$86,692,273
<br />$394,144,090
<br />Townhomes
<br />$28,118,222
<br />$11,042,026
<br />$11,042,026
<br />$50,202,274
<br />Permanent Impacts
<br />New Employment
<br />21
<br />6
<br />6
<br />32
<br />Apartments
<br />21
<br />6
<br />6
<br />32
<br />Townhomes
<br />0
<br />0
<br />0
<br />0
<br />Economic Output
<br />$4,523,798
<br />$2,064,661
<br />$2,064,661
<br />$8,653,121
<br />Apartments
<br />$4,523,798
<br />$2,064,661
<br />$2,064,661
<br />$8,653,121
<br />Townhomes
<br />$0
<br />$0
<br />$0
<br />$0
<br />Source: Rims II Multipliers for Orange County
<br />FRH Realty LLC
<br />22179.01 Santa Ana, CA
<br />April 2023
<br />City Council 18 — 388 10/3/2023
<br />
|