Laserfiche WebLink
3.0 CONSTRUCTION IMPACTS TO LOCAL ECONOMY <br />3.0 CONSTRUCTION IMPACTS TO LOCAL ECONOMY <br />The project's construction phase would create a substantial number of jobs and fuel the local Santa Ana <br />economy, in addition to the remaining areas in Orange County, with secondary spending. To illustrate <br />the economic impacts of the project's construction phase, this study uses an econometric tool known as <br />an "Input -Output" (10) model, which computes all of the construction -related impacts of the affected <br />industries in the City, and in the remainder of the County, including the estimated local expenditures of <br />employees of both the construction and supplier firmsa. <br />These economic benefits are expressed in terms of increased economic activity ("output"), value added, <br />job creation, and employee compensation. See Table 2-1 on page 6 for a summary of the economic <br />benefits for the total project. The discussion below in Sections 3.1 and 3.2 summarizes the total project <br />construction -related impacts. <br />3.1. Industry Output and Value Added <br />During the construction phase the project is projected to directly generate approximately 66.7 million in <br />total economic activity in the City, resulting in approximately $45.5 million in value added. In addition to <br />its direct impacts, the indirect/induced impacts during project construction would include approximately <br />$32.2 million in total economic activity, resulting in approximately $20.4 million in value added (see <br />page 2 for definitions of "direct", "indirect" and "induced"). Thus, accounting forthe full range of <br />economic benefits in the City, during its construction phase the project will generate a grand total of <br />approximately $98.9 million in total industry output and approximately $65.9 million in value added. <br />In the remainder of the County, the project is projected to directly generate approximately $3.1 million <br />in total economic activity, along with an additional $12.2 million from indirect/induced impacts. This <br />total economic activity would generate approximately $10.5 million in value added in the remainder of <br />the County. <br />3.2. Jobs Created and Employee Compensation <br />During the construction phase the project is projected to generate approximately 359 directly related <br />jobs onsite and approximately 225jobs through indirect and induced economic activity. These are <br />quantified as full- and part-time jobs lasting the equivalent of one year. Thus, accounting forthe full <br />range of economic benefits in the City—through direct, indirect, and induced activity — the project will <br />generate about to 584 jobs during the construction phase. The employee compensation associated with <br />these jobs would total approximately $31.7 million. <br />In the remainder of the County, the project is projected to directly generate approximately 11 jobs, <br />along with an additional 82 jobs from indirect/induced impacts. The employee compensation associated <br />with these jobs would total approximately $4.4 million. <br />8 The IMPLAN model was used for this purpose. This model was developed by researchers at the University of <br />Minnesota and is widely used in economic impact analysis throughout the Country. <br />THE NATELSON DALE GROUP, INC. Page 9 <br />DRAFT Economic Impact Analysis <br />The Madison (Santa Ana, CA) <br />75A-106 <br />