Item 24 - Agreement No. 2025-01 - MLC Holdings

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MLC Holdings, Inc. - 2020 E. 1st Street Fiscal Impact & Economic Benefit Report February 27, 2025 development. The Project is expected to generate additional costs of $1,863, based on the Per Capita Method and a marginal cost impact adjustment, as shown in Table 6A of Appendix A. 3. ECONOMIC BENEFIT ANALYSIS 3.1 PURPOSE & METHODOLOGY The EBA portion of this analysis uses the IMPLAN modeling system to determine the one-time economic benefits to occur within the City during the construction phase of the proposed Project and how those impacts create additional one-time economic benefits throughout the local region. IMPLAN is the most widely employed and accepted regional economic analysis software for predicting economic impacts. The IMPLAN model is used to predict the economic consequences of a development project within a local economy and measures the direct, indirect, and induced effects in terms of employment and earnings within a specific region. The analysis estimates the economic benefits of the increases in employment and labor income, based on the estimated total output of the proposed Project. Each economic benefit is then broken down into direct impacts caused by the output of goods and services on -site, indirect impacts caused by increases from the use of goods and services of industries that provide the direct goods and services to the proposed Project, and induced impacts caused by the increase in employment and household spending. The analysis uses the North American Industry Classification System to classify the industry of the proposed Project and then utilizes a Social Accounting Matrix to generate a transactions table that dictates how industries are connected to the rest of an economy. These measures of connectivity are referred to as multipliers. These multipliers are then utilized to estimate the indirect and induced impacts on employment and labor income to occur within the local region. In addition to the economic benefits indicated by the IMPLAN model, development of the Project will also generate various one-time revenues for the City and other local agencies in the form of impact fees and other fees. 3.2 ECONOMIC BENEFITS This EBA focuses on the direct benefits estimated to occur within the City and the increases in employment and labor income during the construction phase of the proposed Project. The proposed Project is expected to start vertical construction in September 2026 and to finish in January 2028. The total construction budget is expected to be $28.6 million and is the output 9 1 P a g e i� ZIMMERMAN GROUP