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MLC Holdings, Inc. - 2020 E. 1st Street <br />Fiscal Impact & Economic Benefit Report <br />February 27, 2025 <br />1. INTRODUCTION <br />On behalf of MLC Holdings, Inc. ("Developer"), Zimmerman Group, Inc. has completed a fiscal <br />impact analysis ("FIA") and economic benefit analysis ("EBA") for the proposed residential <br />home development located at 2020 E. I" Street ("Property") in the City of Santa Ana ("City"). <br />There is an existing office building on the Property that is no longer in use, and Developer is <br />proposing to develop 86 residential units ("Project") on the Property. The Project is proposed to <br />include seventy-five 3-story market rate townhomes, five 3-story affordable townhomes, and six <br />4-story urban duplex homes. The FIA portion of this report calculates the estimated annual <br />recurring fiscal impact on the City's general fund ("General Fund") that will result from <br />development of the proposed Project. The EBA portion of this report calculates the estimated one- <br />time economic benefits to the City and surrounding area during the construction phase of the <br />proposed Project. <br />2. FISCAL IMPACT ANALYSIS <br />2.1 PURPOSE & METHODOLOGY <br />The FIA analyzes the additional revenues and expenses to the City's General Fund expected to <br />result from the development of the Project. The additional revenues are then compared to the <br />additional expenses to determine the net fiscal impact (surplus or deficit) on the City's General <br />Fund. Revenues and expenses are calculated using the case study method ("Case Study Method") <br />and per capita method ("Per Capita Method"). The Case Study Method uses Project specific <br />variables, such as estimated home pricing, to determine the estimated impact on the General <br />Fund. The Per Capita Method is based on the City's total revenue or expense from the Adopted <br />2024-25 Budget, divided by the current service population to determine the average revenue or <br />expense per person. For certain revenue and expense categories, adjustments are made to account <br />for the marginal impact differing from the existing citywide average per capita amount. For <br />example, there are certain fixed costs that are not expected to increase as a result of the Project <br />development. <br />The estimated projected revenues and expenditures are based on information and assumptions for <br />the proposed Project, data from the City's Fiscal Year 2024-25 Operating Budget, 2024-25 tax <br />21Page <br />i� ZIMMERMAN GROUP <br />