Item 26 - Public Hearing Regarding Bristol Project

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4. Economic Impacts Study Methodology This analysis used the IMPLAN (Impact Analysis for Planning) economic impact modeling software to evaluate the project's one-time construction impacts'. This software is classified as an "Input -Output" (10) model that computes all of the economic impacts of industries in a user -defined region (in this case, Orange County), including the estimated local expenditures of employees of both project -direct and supplier firms. The current version of the IMPLAN model divides the economy into 546 sectors that correspond to 4-digit and 5-digit NAICS codes. For construction activity, the IMPLAN modeling system relies on data from the compiled U.S. Census Bureau instead of the NAICS system. The report appendix documents all of the assumptions used in this analysis to translate project specific data into IMPLAN model inputs. As shown in Appendix B, construction -related impacts are based on anticipated construction values provided by the applicant. These construction values were matched to the appropriate IMPLAN construction sector for the impact analysis. The economic benefits, discussed in the following sections, are expressed in terms of increased economic activity ("output"), value added, job creation, and employee compensation. See page 3 in the Introduction for definitions of these economic benefits measures. The following section summarizes total project construction -related impacts. Construction Impacts to Local Economy Table 4-1, on page 9, provides a detailed summary of the construction -phase impacts at buildout to the Orange County economy. Industry Output and Value Added During the construction phase, the project is projected to directly generate approximately $2.1 billion in total economic activity in Orange County, resulting in about to $1.7 billion in value added. In addition to its direct impacts, the indirect/induced impacts during project construction would include approximately $771.2 million in total economic activity and $489.8 million in value added (see page 3 for definitions of "direct", "indirect" and "induced"). Thus, accounting for the full range of economic benefits in the County, during its construction phase the project will generate a grand total of about $2.9 billion in total industry output and approximately $2.2 billion in value added. Jobs Created and Employee Compensation During the construction phase the project is projected to generate approximately 4,756 directly related average annual jobs onsite and approximately 1,108 average annual jobs through indirect and induced economic activity. These are quantified as full-time, part-time and temporary jobs. Thus, accounting for the full range of economic benefits in Orange County —through direct, indirect, and induced activity — the project will generate close to 5,900 average annual jobs during the construction phase. The labor 4 This model was developed by researchers at the University of Minnesota and is widely used in economic impact analysis throughout the Country. THE NATELSON DALE GROUP, INC. Economic and Fiscal Impact Analysis Project Bristol Project (Santa Ana, CA) Page 7 Exhibit 10