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

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ta www.FinanceDTA.com II INTRODUCTION SECTION II INTRODUCTION DTA has been retained by EPD Solutions, Inc. to analyze the fiscal impacts of the development of the proposed South Coast Technology Center project (the "Project") on the City of Santa Ana (the "City") General Fund. The Project site is generally comprised of two sites located on both sides of Susan Street in the City, with the one on the east side currently developed with three existing office buildings located at 3100, 3110, and 3120 West Lake Center Drive, and the one 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 of professional and business offices and commercial/retail uses. The Project proponent is proposing to demolish the existing office buildings and appurtenant infrastructure on the Project site, and amend the permissible uses of SD-58 for the Project site to include limited light industrial uses ("LLIUs"), including but not limited to product assembly, the manufacture of biological, biomedical, and pharmaceutical products, the manufacture of scientific, engineering, and medical instruments, wholesale, warehousing, machine and other metal working shops, and research laboratories. To provide the City with a comprehensive evaluation of the Project's potential, DTA will determine whether the Project is likely to generate an incremental net fiscal surplus or a net fiscal deficit to the City's General Fund. A Scope and Methodology — Recurring Fiscal Impacts Fiscal impacts arising from a land development plan can be broadly categorized as one of two types, specifically one-time impacts or recurring impacts. Each of these types may, in turn, be divided into a revenue component and cost component. In this Report, it is assumed that one-time revenues would directly offset one-time costs. This is consistent with Section 66000 et. seq. of the California Government Code, which authorizes a municipality to require the payment of development impact fees equal in value to the cost of the public infrastructure necessary to support a development project. Thus, the fiscal impacts considered in this Report focus on ongoing, or recurring, fiscal impacts of the Project on the City General Fund. Revenues that are generated outside of the City General Fund (e.g., special district revenues) or costs that are incurred by the City outside of the General Fund (e.g., costs financed through a special district) are not included within this fiscal analysis. The FIA presented in this Report utilizes two methods of analysis, specifically the Per Capita/Multiplier Approach and Case Study Approach. The primary Multiplier Methodology used is the Per Capita ('Persons Served') Methodology, which recognizes the fact that the exact relationship of service demands and revenue -generating potential between residents and employees is difficult to quantify. In order to address this challenge, several assumptions are employed. EPD Solutions, Inc. May 13 2024 South Coast Technology Center Fiscal Impact Analysis Report El