Item 26 - Public Hearing Regarding Bristol Project

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of DTA FIA at $1.23 per $1,000 increase in assessed valuation on a Citywide basis, whereas the Related FIA assumed $0.96 per $1,000 increase. Taxable Sales per BSF: The Related FIA estimated average taxable sales of $400 per BSF for retail commercial uses. Given that fitness and neighborhood service uses will generate a de minimis amount of taxable sale receipts, and that only approximately 35% of grocery store sales are taxable, DTA utilized the following metrics in calculating taxable sale receipts as listed in Attachment 1-E. Grocery: A taxable sales of $315 per BSF is utilized based on the gross sales of $900 per BSF and 35% of such sales being taxable. Restaurant: A taxable sales factor of $1,000 per BSF is utilized assuming that restaurant use will be comprised of an equal percentage of fast -service and full -service restaurants, with fast - service and full -service restaurants generating $1,350 and $650 taxable sales per BSF, respectively. Neighborhood Retail: Based on the market research performed by DTA, a taxable sale of $400 per BSF is utilized. Indirect Sales Tax: As detailed in Attachment 1-E, DTA utilized the 2021 Consumer Expenditure Survey published by the U.S. Bureau of Labor Statistics to estimate the annual household taxable retail spending, and the Office Worker Retail Spending in a Digital Age published by ICSC to estimate the annual spending on lunch by on -site employees. The Related FIA did not provide details on the source of the taxable sales receipts generated by on - site residents and employees that were utilized in their FIA. Measure X Sales Tax: In November 2018, the City's voters approved Measure X, a local 1.5% sales tax rate that became effective April 1, 2019, to provide funding for neighborhood safety, homeless prevention, and essential City services enhancement. Measure X rate will decrease to 1% in 2029 and sunset in 2039. Given that build -out of the Project is expected to occur after 2029, DTA assumed that the revenues to be provided by the Measure X sales tax at the Project's build -out will only be 1%. In contrast, the Related FIA utilized the current 1.5% rate for its Measure X sales tax projections at buildout. C FIA Conclusion Comparison As listed in Table 1, the overall net fiscal impact associated with the Project's build -out is projected to generate an annual recurring fiscal surplus to the City's General Fund under both the Related FIA and DTA FIA. However, DTA methodology projects a significantly lower annual recurring fiscal surplus of $3,394,298 per year, versus the Related FIA's recurring fiscal surplus of $8,768,999 per year. The Related FIA actually projects a surplus of over $10,710,000 annually in its Executive Summary (Table 2-1) and its Net Fiscal Impact Table (Table 3-1), but DTA took the liberty of increasing police department costs in the Related FIA from $176,498 to $2,117,587, as the latter figure was listed as the total Project police costs in Table A-15b of the Related FIA, but then was replaced by a much lower figure ($176,498) in the tables in which net fiscal impacts were calculated. DTA assumed that the City of Santa Ana September 27, 2023 Fiscal Impacts Resulting from the Proposed Related Bristol Specific Plan Exhibit 10 5