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1.0 INTRODUCTION 1.0 INTRODUCTION This report evaluates the regional economic benefits that would result from construction of the proposed The Madison mixed-use development in the City of Santa Ana, California. The proposed development includes 260 units - consisting of a mix of studio, live/work, one-, two-, and three-bedroom apartments — along with ground floor retail space (6,561 square feet). The economic impact analysis focuses on city -level and regional (i.e., county -wide) economic benefits that will be generated during the construction phase of the project, along with annually -recurring benefits resulting from new residents' spending on local retail goods and services and management/operation of the apartment complex. These economic benefits are quantified in terms of the number of jobs created, the total wage/salary income associated with these jobs, and the overall volume of economic output (i.e., total business activity) supported by the project. Along with regional economic benefits, this analysis also evaluates annually -recurring fiscal revenue impacts to the City's General Fund. 1.1. Organization of the Report This introduction summarizes the project description and describes the scope of the study. Chapter 2 provides a brief summary of the project's City -level and regional economic benefits, which include the short-term economic impacts related to construction of the project, along with the ongoing impacts resulting from new residents' local expenditures and management/operation of the apartment complex. In addition to the regional economic benefits, this section also summarizes the project's fiscal revenue impacts to the City's General Fund. Chapter3 provides further details on the construction -related economic impacts, while Chapter 4 provides further details on the ongoing economic impacts. Chapter 5 provides additional detail on the projection of fiscal revenues to the City's General Fund. Appendix A provides documentation of the construction -phase data inputs used in the economic impact analysis. For the ongoing benefits generated by the new residents and management/operation of the apartment complex, Appendix B provides documentation of the resident -spending assumptions and data inputs used in the analysis. Finally, Appendix C provides a glossary of the economic impact measures evaluated in this analysis. 1.2. Scope of the Study The analysis considers direct economic impacts (e.g., on-site for the construction -phase) as well as indirect and induced, or "multiplier', benefits in the City and in the remainder of Orange County. The analysis estimates the following types of economic impacts: • Construction -phase impacts o Direct construction employment by year forthe project build -out period o Direct construction payroll o Indirect/induced (i.e., "multiplier') jobs and payroll o Other construction -related benefits (i.e., local spending) THE NATELSON DALE GROUP, INC. DRAFT Economic Impact Analysis The Madison (Santa Ana, CA) 75A-98 Page 1