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