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4.0 ONGOING ECONOMIC BENEFITS TO LOCAL ECONOMY 4.0 ONGOING ECONOMIC BENEFITS TO LOCAL ECONOMY The proposed project will generate ongoing benefits to the local economy, in addition to the remainder of Orange County, from the following two sources. First, new apartment residents will generate economic impacts in the local economy through expenditures on local goods and services (including at onsite retail). Second, the management and operation of the apartment complex will generate impacts in the local economy. Appendix B provides detailed tables on the assumptions and data inputs for estimating ongoing economic benefits, along with a narrative description, for the IMPLAN model. These economic benefits are expressed in terms of increased economic activity ("output"), value added, job creation, and labor income. See Table 4-1 on page 13 for a summary of the annual economic benefits for the total project. The discussion below in Sections 4.1 and 4.2 summarizes the total ongoing economic benefits from the two sources discussed above. 4.1. Industry Output and Value Added The project's direct annual impact, from new resident local spending (including at onsite retail) and management/operation of the apartment complex, to the City economy would include approximately $5.6 million in total economic activity and approximately $3.9 million in value added. In addition to its direct impacts, the indirect/induced impacts of the project would include approximately to $2.6 million in total economic activity and approximately $1.6 million in value added (see page 3 for definitions of "direct", "indirect" and "induced"). Thus, accounting for the full range of economic benefits in the City, on an annual basis the project will generate a grand total of more than $8.2 million in total industry output and approximately $5.5 million in value added. In the remainder of the County, the project is projected to directly generate approximately $242,000 in total economic activity, along with an additional $1.5 million from indirect/induced impacts. This total economic activity would generate approximately $1.1 million in value added in the remainder of the County. 4.2. Jobs Created and Employee Compensation The project, from new resident local spending and management/operation of the apartment complex, would directly support approximately 61jobs and a total annual payroll of approximately $1.8 million. In addition to direct impacts, the indirect/induced economic impacts from the project would support approximately 16 jobs and a total annual payroll (including benefits) of approximately $796,000 in the City. Thus, the direct, indirect, and induced economic activity associated with the project would support approximately 77 jobs and a total annual payroll (including benefits) of close to $2.6 million in the City. In the remainder of the County, the project is projected to directly generate approximately 2 jobs, along with an additional 9 jobs from indirect/induced impacts. The payroll and benefits associated with these jobs would total approximately $486,000. THE NATELSON DALE GROUP, INC. Page 12 DRAFT Economic Impact Analysis The Madison (Santa Ana, CA) 75A-109