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

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ta www.FinanceDTA.com SECTION II INTRODUCTION static, in terms of their not being anticipated to increase significantly as a result of the construction of the Project. This includes intergovernmental and commercial cannabis tax revenues, revenues generated by property rentals, jail leases, and advertisements, and cost recoveries and reimbursements This same discounting technique was applied to the General Fund expenditures to accurately reflect the estimated ratio of fixed costs to variable costs. Notably, DTA has assumed that no discount factors would be applied to police, public works, and fire protection expenditures. As documented in Appendix A-1, a 15% discount rate is applied to remaining services expenditures. The marginal increase in the general government overhead costs associated with the additional non -general government expenditures incurred by new development is assumed to be 75%, which means a 25% discount was applied to these overhead costs. 8.2 Employee Generation DTA estimated the number of direct employees at the Project's build -out based upon the 737 Square Feet per Employee ("SF/E") provided by the Project proponent. Based on several data sources that provided this type of data for similar land uses, DTA deemed this metric to be appropriate for the Project. As summarized in the attachment for Appendix A-3, the Project is anticipated to generate 425 direct on -site employees at its build -out. B.3 Valuation per BSF This report provides an estimated valuation per BSF calculation. Accuracy in these calculations is important because these totals are used to determine expected property revenues. The estimated valuation of $389.79 per BSF is derived based on the projected land value and construction costs of $122.1 million and 313,244 BSF as provided by Project proponent. C Limitations — Accuracy of Information The fiscal model in the Report contains an analysis of revenues, costs, and impacts to the City resulting from the Project. This model is based on information provided to DTA by Project proponent, the City's FY 2023-24 budget, the County's FY 2023-24 Assessor's Roll, Housing and Population Information from the California Department of Finance, a 2023 City of Santa Ana Employment Profiles analysis using North American Industry Classification System codes as prepared by Environics Analytics, a U.S. Energy Information Administration Energy Consumption Survey, Internet research performed by DTA regarding various industries, and additional assumptions derived from DTA's municipal cost database, as compiled by DTA from previous fiscal impact studies prepared by the firm. The sources of information and basis of the estimates calculated in the Report are stated herein. While DTA is confident that the sources of information are reliable, DTA does not express an opinion or any other form of assurance on the accuracy of such information. The analysis of fiscal impacts contained in this Report is EPD Solutions, Inc. May 13 2024 South Coast Technology Center Fiscal Impact Analysis Report