Item 28 - Public Hearing - ZOA No. 20204-01 South Coast Technology Center

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SECTION I ta www.FinanceDTA.com EXECUTIVE SUMMARY A Purpose of the Study EXECUTIVE SUMMARY The objective of this Fiscal Impact Analysis ("FIA") Report (the "Report") is to analyze the incremental net fiscal impact of the proposed South Coast Technology Center project (the "Project") on the City of Santa Ana (the "City") General Fund. To provide the City with a comprehensive evaluation of the Project's potential, this DTA Report will evaluate whether the Project is likely to generate an incremental net fiscal surplus or a net fiscal deficit to the City's General Fund. B Incremental Fiscal Impacts on the City's General Fund The fiscal impacts identified in this Report include annual recurring municipal revenues and costs that result from the Project's proposed land use scenario. To provide an accurate fiscal picture of the Project, the Report will focus exclusively on annual recurring revenues and costs. Recurring revenues to the City General Fund identified in this Report are generated from a variety of sources, including property taxes, sales taxes, in -lieu vehicle license fees, utility user taxes, licenses and permits, franchise fees, fines, and other revenue sources. Although these revenues vary from year to year, they recur on a regular basis and are part of the City's annual budgeting plans. The recurring costs to the City General Fund are equally important in this analysis. Recurring costs are associated with a variety of City services, including public safety, public works maintenance, and general government administrative services. Similar to annual revenues, these are costs that the City must anticipate and plan to fund on a yearly basis. Revenues that are considered non -recurring to the City General Fund, such as various permitting fees, are excluded from this analysis. These types of revenues have been excluded as new development is generally required to pay specific user fees, such as grading and building prior to the construction of the project. As these are considered one-time revenues, there is no expectation that new development will need to pay these fees on a recurring basis. In addition, costs imposed as a result of the proposed Project that are considered to be non -recurring, such as impact fees, are also excluded from the FIA calculations because they are expended on a one-time basis to fund new development's fair share of capital improvement costs. C Description of the Project The Project site, as depicted in Figure 1 below, is generally comprised of two separate sites located on both sides of Susan Street in the City, with the site on the east side currently developed with three existing office buildings located at 3100, 3110, and 3120 West Lake Center Drive, and the site on the west side encompassing approximately 5.58 acres of vacant land. The entire Project site is located within the City Specific Development No. 58 ("SD- 58") zoning district, with the permissible land uses comprised of commercial/retail uses and professional and business offices. EPD Solutions, Inc. May 13 2024 South Coast Technology Center Fiscal Impact Analysis Report 11