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MLC Holdings, Inc. - 2020 E. 1st Street <br />Fiscal Impact & Economic Benefit Report <br />February 27, 2025 <br />Documentary Stamp Tax, and it is assumed the Project will have a 10% turnover rate each year <br />estimated to generate $4,162 per year in revenues to the City's General Fund as shown in Table <br />2A of Appendix A. <br />Sales Tax <br />Sales tax revenues are generated by taxable purchases made within the City. As shown in Table <br />4A of Appendix A, it is anticipated that the Project will generate approximately $37,236 in annual <br />taxable sales per unit totaling $3,202,296 in taxable sales at buildout. This includes only the <br />taxable sales expected to be captured by the City. The City will receive 1.00% of taxable sales <br />resulting in an estimated recurring annual sales tax revenue of $32,023 to the City General Fund. <br />Sales Tax Measure X <br />In November 2018, Santa Ana voters approved Measure X: the Santa Ana Neighborhood Safety, <br />Unhoused Community prevention and Essential City Services Enhancement Measure. Measure X <br />became effective April 1, 2019, and levies a local 1.5% sales tax rate, decreasing to 1.0% in 2029, <br />then sunsets in 2039. Vital goods like groceries, gasoline, medication and housing are exempt <br />from this tax. Revenues from Measure X at Project buildout are estimated to be $48,034 as shown <br />in Table 4A of Appendix A. <br />Half -Cent Sales Tax (Safety) <br />The Half -Cent Sales Tax (Safety) revenues are funds to be dedicated to local public safety <br />including sheriff, police, fire, county district attorneys, and corrections. The tax is collected by the <br />State Board of Equalization and allocated to each county based on the county's share of the <br />state's total taxable sales. The county then determines the amount each city is to receive from the <br />tax. It is estimated the City receives 9.08% of the Half -Cent Sales Tax (Safety) revenues and the <br />increase to the General Fund will be $1,454 for the Project as shown in Table 4A of Appendix A. <br />Franchise Fees <br />Franchise Fees are the fees paid by businesses such as utility companies for the use of public <br />streets and roadways. The Project is estimated to generate additional revenues of $10,655, based <br />on the Per Capita Method, as shown in Table 5A of Appendix A. <br />61Page <br />i� ZIMMERMAN GROUP <br />