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HomeMy WebLinkAbout15. Fiscal Impact AnalaysisCITY OF CH ULA VISTA Fiscal Impact Analysis Report OTAY RANCH FREEWAY PREPARED FOR BALDWIN & SONS SEPTEMBER 12, 2018 (ORIGINAL) REVISED REPORT DATED FEBRUARY 27, 2019 Table of Contents   1 Executive Summary 1 2 Recommendation 2 3 Fiscal Impact Analysis FC-2 3 4 Currently Approved FC-2 Assumptions 4 5 Proposed FC-2 Amended Plan Assumptions 5 6 Findings 6 Appendices A   Otay Ranch Freeway Commercial Page | 1 Fiscal Impact Analysis Report For City of Chula Vista Executive Summary The Freeway Commercial Sectional Planning Area (SPA) in Otay Ranch consists of approximately 124 acres within two distinct districts, southern and northern. The southern, approximately 86-acre district is the FC-1 site operating as the Otay Ranch Town Center Shopping Center. The northern, approximately 38-acre district is the FC-2 site (the “Project”) that is the subject of this Fiscal Impact Analysis (FIA). The developer has proposed a SPA Plan Amendment to add three hundred multifamily residential units to the Project within the approximately 10.4 acre portion east of Town Center Drive (the “Proposed Amended Plan”). This FIA Report provides information related to the Proposed Amended Plan and anticipated fiscal impacts to the City’s General Fund, as compared to the currently approved development plan (the “Approved Plan”). The developer’s existing entitlements for FC-2 are a mix of development as follows: 290 Multi-Family Attached units – For Sale Townhomes 310 Multi-Family Attached units – Rental Apartments 2 Hotels – totaling 300 rooms (148 and 152) 15,000 SF ground floor commercial in Mixed Use format Two (2) acre park The scope of this review was analyzing the fiscal impacts projected to result from changing the development plan for FC-2 from the Approved Plan to the Proposed Amended Plan, which includes the addition of 300 multifamily attached (for rent) apartment units. As with the Approved Plan, the Proposed Amended Plan is projected to generate a positive net fiscal impact to the City’s General Fund. In Year 10 the project is expected to generate a net positive impact of $1,432,418. While the overall Project revenues are increasing, expenditures are increasing more. As a result, the analysis indicates a decrease in net positive fiscal impacts of approximately $95,931 annually over 10 years for the Proposed Amended Plan. Please note, the original model used as the basis of the previously approved FIA by HR&A Advisors dated March 2015 did not reflect all public safety and City overhead costs reflected in the current model. A comparison of the Approved Plan and the Proposed Amended Plan using the new City model more accurately reflects the fiscal impact of the additional 300 dwelling units. The net impact of the proposed amended plan for the Freeway FC-2 development is positive, the following cautions are provided from the new model: Parcel 1 (FC-1) Otay Ranch Town Center (“Center”) – Since its opening in 2006, several retail stores at the Center have closed, including Aeropostale, American Eagle Outfitters, Anthropologie, Coach, Guess, Kay Jewelers, REI, and Zales (not intended to be an all-inclusive list). The shift of FC-2’s entitlements to additional residential units, hotels, and reductions in retail plans appears to support a positive transition for the not only FC-2 site but also should provide foot traffic and support to the Center in FC-1. Overall, the Proposed Amended Plan is anticipated to result in a net positive fiscal impact of $11,845,954 over the next 10 years. The cumulative positive net fiscal impact reflects a reduction of $959,308 from the Approved Plan over 10 years due to the increased service demand from the new residential units. Otay Ranch Freeway Commercial Page | 2 Fiscal Impact Analysis Report For City of Chula Vista Recommendation The Proposed Amended Plan increasing the authorized residential land uses from 600 to 900 multifamily units has a net positive projected impact to the City’s General Fund and should also help increase foot traffic at the adjacent Otay Ranch Town Center. Otay Ranch Freeway Commercial Page | 3 Fiscal Impact Analysis For City of Chula Vista Fiscal Impact Analysis FC-2 Below is a summary of the Net Revenues determined using the new fiscal impact model and a comparison to the approved project with the original 600 multi-family residential units, 300 room hotels, and 15,000 square feet of commercial and the proposed changes to FC-2. The net effect is an average decrease in general fund revenues of approximately $95,931 per year over 10 years. Approved FC2 Year 1Year 2Year 3Year 4Year 5Year 10 Cumulative Average Revenues 653,432$ 756,616$ 1,143,972$ 1,829,669$ 2,094,614$ 2,304,022$ 17,571,885$ 1,757,188$ Expenditures 8,298$ 127,229$ 162,911$ 418,018$ 659,261$ 688,463$ 4,766,623$ 476,662$ Projected Net 645,133$ 629,387$ 981,061$ 1,411,651$ 1,435,353$ 1,615,559$ 12,805,261$ 1,280,526$ 10 Year Analysis Net Revenues Year 1Year 2Year 3Year 4Year 5Year 10 Cumulative Average Approved FC2 645,133$ 629,387$ 981,061$ 1,411,651$ 1,435,353$ 1,615,559$ 12,805,261$ 1,280,526$ Proposed FC2 645,133$ 658,148$ 1,005,450$ 1,320,195$ 1,311,647$ 1,432,418$ 11,845,954$ 1,184,595$ Net Change -$ 28,761$ 24,390$ (91,456)$ (123,706)$ (183,140)$ (959,308)$ (95,931)$ 10 Year Analysis Otay Ranch Freeway Commercial Page | 4 Fiscal Impact Analysis For City of Chula Vista Currently Approved FC-2 Assumptions The current developer/owner of the FC-2 site has a transit supportive mixed-use project that adds up to 600 multifamily residential units, a minimum of 15,000 square feet of commercial retail in mixed-use format, a new 2-acre urban park and two hotels with a combined minimum of 300 rooms. SCG verified assessed values by land use type for all development, including the residential component, was in line with the market. The assessed value per unit as supplied by the developer and used for this study is $325,000 and $246,050 per unit for townhomes and apartments, respectively. The assessed value for the hotels utilized was $146,067 per door. 300 hotel rooms – New transient occupancy tax revenues are projected to grow to $1.4 million annually, which is critical in replacing sales tax dollars lost due to the commercial retail square footage reductions previously approved for FC-2. The first hotel opened in October 2017 and the second is set to open late 2020. 600 multifamily attached units (for sale and rental apartments) - envisioned to include high density residential units in the mixed-use land use category with a density range of 28 to 45 units per acre. Assumed $270 per square foot for on-site retail sales, as provided by developer. Included Vehicle License Fee (VLF) revenues as Property Tax In-Lieu of VLF (per capita basis). Multifamily persons per dwelling unit factor is 2.6. Otay Ranch Freeway Commercial Page | 5 Fiscal Impact Analysis For City of Chula Vista Proposed FC-2 Amended Plan Assumptions The developer has approached the City requesting entitlement for an additional 300 multifamily residential units, bringing the total approved residential units for the Project to 900. The proposed changes, if approved, are anticipated to generate sufficient revenue to offset the cost of providing municipal services to the FC-2 site. SCG verified assessed values by land use type for all development, including the residential component, was in line with the market. The assessed value per unit as supplied by the developer and used for this study is $246,050 per unit for apartments. 900 multifamily attached units (for sale and rental apartments) - envisioned to include high density residential units in the mixed-use land use category with a density range of 28 to 45 units per acre. Included VLF revenues as Property Tax In-Lieu of VLF (per capita basis). Multifamily persons per dwelling unit factor is 2.6. Proposed FC2 Year 1Year 2Year 3Year 4Year 5Year 10 Cumulative Average Revenues 653,432$ 785,376$ 1,368,936$ 2,041,727$ 2,278,011$ 2,439,411$ 18,997,264$ 1,899,726$ Expenditures 8,298$ 127,229$ 363,486$ 721,532$ 966,365$ 1,006,993$ 7,151,311$ 715,131$ Net (projected)645,133$ 658,148$ 1,005,450$ 1,320,195$ 1,311,647$ 1,432,418$ 11,845,954$ 1,184,595$ 10 Year Analysis Otay Ranch Freeway Commercial Page | 6 Fiscal Impact Analysis For City of Chula Vista Findings The projected net fiscal impact of the Project to the City’s General Fund under both the Approved Plan and the Proposed Amended Plan is positive; however, the Proposed Amended Plan generates reduced positive fiscal impacts. The following cautions are provided from the new model: The Parcel 1 (FC-1) Otay Ranch Town Center (“Center”) – Since its opening in 2006, several retail stores have closed, including, Aeropostale, American Eagle Outfitters, Anthropologie, Coach, Guess, Kay Jewelers, REI, and Zales (not intended to be an all-inclusive list). The shift of FC-2’s entitlements to additional residential units (including the additional 300 apartment units in this analysis), hotels, and reductions in retail plans appear to support a positive transition for the not only FC-2 area but also should provide foot traffic and support to the Center in FC-1. The proposed project will be building additional high-density residential units that should provide affordable housing opportunities. This report is based upon future plans that have not yet been constructed, as such, the projections are estimates only and subject to market and development risk. However, given that Transient Occupancy Taxes are key fiscal revenues, the timing and number of hotel rooms that are successful developed will impact the City net fiscal impacts. The Proposed Amended Plan is projected to generate increased revenues as compared with the Approved Plan; however, expenditures are projected to increase more than revenues due to the service demands from the increased residential units. In Year 10, the Project is expected to generate $1,432,418 in net positive fiscal impacts to the City’s General Fund. The net projected General Fund fiscal impact projected to result from the proposed amendment represents an average annual decrease of approximately $95,931 in net positive fiscal impacts over 10 years. The following attachments include the conceptual site plan, location of the SPA boundary, and the fiscal impact analysis, including the original, amended revenues, and expenditures. APPENDICES <<A-1>> A-1 Freeway Commercial Sectional Planning Area, Otay Ranch A-2 ORIGINAL - CONCEPTUAL SITE PLAN ‐FC2 $- REVISED - CONCEPTUAL SITE PLAN ‐FC2 c $ ORIGINAL FIA HR&A Model Table A-19 Net Fiscal Impacts FC2 Amendment CPI ( San Diego Area)1 265.25 242.27 Freeway Commercial Amendment 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2015 Dollar Inflation Factor 1.095 1.095 1.095 1.095 1.095 1.095 1.095 1.095 1.095 1.095 1.095 Total Expenditures $1,181,099 $1,181,099 $1,366,202 $1,631,904 $1,968,914 $2,259,247 $2,259,247 $2,259,247 $2,259,247 $2,259,247 $2,259,247 Total Revenues $2,196,150 $2,371,333 $3,070,167 $3,609,828 $3,902,236 $4,547,213 $4,830,694 $4,780,735 $4,785,342 $4,790,806 $4,797,091 Net Fiscal Impacts (2015 Dollars) $1,015,051 $1,190,234 $1,703,965 $1,977,925 $1,933,322 $2,287,966 $2,571,447 $2,521,488 $2,526,095 $2,531,559 $2,537,844 1Bureau of Labor Statistics. 2015 Approximated using mid-2014 San Diego CPI Source: HR&A Advisors A-5 PROPOSED FC-2 New City Model Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Residential - Townhomes - - 234 494 754 754 754 754 754 754 Residential - Apartments - 260 598 1,248 1,586 1,586 1,586 1,586 1,586 1,586 Subtotal (Per Capita) - 260 832 1,742 2,340 2,340 2,340 2,340 2,340 2,340 Employment Population 10 13 42 87 117 117 117 117 117 117 Totals 10 273 874 1,829 2,457 2,457 2,457 2,457 2,457 2,457 Residential - Townhomes - - 90 190 290 290 290 290 290 290 Residential - Apartments - 100 230 480 610 610 610 610 610 610 Totals - 100 320 670 900 900 900 900 900 900 Hotel 1 - # rooms 148 148 148 148 148 148 148 148 148 148 Hotel 2 - # rooms - - 152 152 152 152 152 152 152 152 Totals 148 148 300 300 300 300 300 300 300 300 Average Hotel Daily Rate - San Diego County Average* 150.26$ 152.55$ 154.87$ 157.19$ 159.55$ 161.94$ 164.37$ 166.84$ 169.34$ 171.88$ Average Hotel Daily Rate - Developer Assigned* 150.26$ 152.55$ 154.87$ 157.19$ 159.55$ 161.94$ 164.37$ 166.84$ 169.34$ 171.88$ Average Hotel Occupancy* 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% Developer Provided Hotel Occupancy* 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% Transient Occupancy Tax Rate (per room night) 10% 10% 10% 10% 10% 10%10% 10% 10% 10% Absorption Rate 100% 100% 75% 100% 100% 100% 100% 100% 100% 100% Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 General Fund Revenues Tax Revenues Property Tax AV $27,455 $72,440 $99,440 $142,200 $166,669 $170,003 $173,403 $176,871 $180,408 $184,016 Sales and Use Tax Per Capita $0 $33,373 $108,591 $231,253 $315,776 $321,077 $326,454 $331,902 $337,419 $342,242 Sales and Use Tax ‐ Project Specific Separate Analysis $0 $0 $34,628 $34,628 $34,628 $34,628 $34,628 $34,628 $34,628 $34,628 Transient Occupancy Tax Per Capita $158 $4,288 $17,356 $36,493 $49,137 $49,333 $49,522 $49,705 $49,883 $50,133 Transient Occupancy Tax - Project On-Site $625,819 $635,349 $980,612 $1,327,094 $1,347,001 $1,367,206 $1,387,714 $1,408,530 $1,429,658 $1,451,103 Motor Vehicle In-Lieu of VLF Per Capita $0 $20,813 $67,413 $142,917 $194,446 $197,000 $199,636 $202,428 $205,214 $208,147 Franchise Fees Per Capita $0 $11,380 $36,383 $76,171 $102,314 $102,308 $102,302 $102,377 $102,449 $102,597 Other Taxes Per Capita $0 $1,185 $3,654 $7,481 $9,784 $9,618 $9,453 $9,289 $9,045 $8,881 Subtotal Tax Revenues $653,432 $778,828 $1,348,075 $1,998,237 $2,219,754 $2,251,173 $2,283,112 $2,315,729 $2,348,702 $2,381,746 Other Revenues Per Capita $0 $1,564 $5,009 $10,190 $13,623 $13,323 $13,265 $12,980 $13,004 $12,732 Licenses and Permits Per Capita $0 $1,302 $4,184 $8,795 $11,860 $11,904 $11,946 $11,987 $12,027 $12,066 Fines, forfeitures, penalties Per Capita $0 $1,030 $3,300 $6,915 $9,295 $9,381 $9,386 $9,468 $9,471 $9,549 Use of Money & Property Per Capita $0 $2,295 $7,278 $15,103 $20,193 $20,102 $19,936 $19,852 $19,695 $19,616 Charges for Services No Forecast $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Intergovernmental Per Capita $0 $1,920 $6,099 $12,677 $16,908 $16,791 $16,678 $16,568 $16,462 $16,433 Subtotal Other Revenues $0 $6,548 $20,861 $43,490 $58,257 $58,178 $57,946 $57,875 $57,655 $57,664 Total General Fund Revenues $653,432 $785,376 $1,368,936 $2,041,727 $2,278,011 $2,309,351 $2,341,058 $2,373,604 $2,406,358 $2,439,411 General Fund Expenditures General Government Per Capita $108 $3,651 $12,218 $26,453 $37,642 $39,160 $40,480 $41,987 $42,992 $42,774 Community Development (20%)Per Capita $22 $572 $1,898 $4,107 $5,805 $6,011 $6,149 $6,303 $6,421 $6,420 Public Works/Engineering Per Capita $199 $2,073 $8,366 $18,101 $25,506 $27,230 $27,857 $28,551 $29,087 $29,083 PC/EMP Base Drainage Management System 26.50$ $358 $7,355 $7,502 $7,652 $7,805 $7,962 $8,121 $8,283 $8,449 $8,618 Building Management System 4.10 $55 $1,137 $1,159 $1,183 $1,206 $1,230 $1,255 $1,280 $1,306 $1,332 Parks Management System 15.68 $212 $4,351 $4,438 $4,527 $4,617 $4,710 $4,804 $4,900 $4,998 $5,098 Open Space Management System 6.72 $91 $1,865 $1,902 $1,940 $1,979 $2,018 $2,059 $2,100 $2,142 $2,185 Fleet Management System 3.73 $50 $1,036 $1,057 $1,078 $1,099 $1,121 $1,144 $1,167 $1,190 $1,214 Pavement Annual (PMP)14.18 $191 $3,937 $4,015 $4,096 $4,178 $4,261 $4,346 $4,433 $4,522 $4,612 General Govt Management System 0.65 $9 $181 $185 $189 $192 $196 $200 $204 $208 $212 Urban Forestry Management System 6.72 $91 $1,865 $1,902 $1,940 $1,979 $2,018 $2,059 $2,100 $2,142 $2,185 78.28$ $1,057 $21,726 $22,161 $22,604 $23,056 $23,517 $23,988 $24,467 $24,957 $25,456 Community Services Per Capita $231 $6,051 $19,885 $43,013 $60,351 $61,827 $63,249 $64,825 $66,044 $66,033 Public Safety: Police Services Per Capita $2,073 $58,521 $179,087 $376,749 $508,678 $510,760 $512,989 $515,379 $517,895 $520,193 Police Services Separate Analysis $2,681 $2,857 $15,298 $15,864 $16,464 $17,071 $17,706 $18,375 $19,070 $19,790 Fire Services Per Capita $1,003 $27,986 $89,779 $188,477 $253,933 $254,785 $255,707 $256,706 $257,765 $258,908 Fire Services Separate Analysis $812 $844 $5,108 $5,215 $5,534 $5,654 $5,777 $5,902 $6,029 $6,159 Animal Control Services Per Capita $112 $2,947 $9,685 $20,950 $29,395 $30,143 $30,829 $31,588 $32,177 $32,176 Total Public Safety $6,682 $93,155 $298,957 $607,255 $814,004 $818,413 $823,007 $827,950 $832,935 $837,226 Total General Fund Expenditures $8,298 $127,229 $363,486 $721,532 $966,365 $976,160 $984,730 $994,083 $1,002,436 $1,006,993 Projected Net Revenues/(Shortfall)$645,133 $658,148 $1,005,450 $1,320,195 $1,311,647 $1,333,191 $1,356,328 $1,379,521 $1,403,922 $1,432,418 Population Number of Homes Transient Occupancy Tax (Project Specific) Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Property Tax Analysis Residential Units Multi‐Family Residential ‐ Attached Townhomes Total Cumulative MFR Units 290 - - 90 190 290 290 290 290 290 290 Total Cumulative Residents 2.60 - - 234 494 754 754 754 754 754 754 Percentage Complete 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Constructed Assessed Values $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Multi‐Family Attached Apartments Total Cumulative MFR Units 610 - 100 230 480 610 610 610 610 610 610 Total Cumulative Residents 2.60 - 260 598 1,248 1,586 1,586 1,586 1,586 1,586 1,586 Percentage Complete 0% 16% 38% 79% 100% 100% 100% 100% 100% 100% Constructed Assessed Values $73,815,000 $0 $12,100,820 $27,831,885 $58,083,934 $73,815,000 $73,815,000 $73,815,000 $73,815,000 $73,815,000 $73,815,000 Total Cumulative Residents ‐ 260 832 1,742 2,340 2,340 2,340 2,340 2,340 2,340 FC 2 Parcel ‐ Mixed Use Commercial Percentage Complete 0% 0% 100% 100% 100% 100% 100% 100% 100% 100% Constructed Assessed Values 3,606,450$ -$ -$ 3,606,450$ 3,606,450$ 3,606,450$ 3,606,450$ 3,606,450$ 3,606,450$ 3,606,450$ 3,606,450$ Hotel Percentage Complete 49% 100% 100% 100% 100% 100% 100% 100% 100% 100% Constructed Assessed Values 43,820,100$ 21,617,916$ 43,820,100$ 43,820,100$ 43,820,100$ 43,820,100$ 43,820,100$ 43,820,100$ 43,820,100$ 43,820,100$ 43,820,100$ Constructed Assessed Values Total Current Period Assessed Value Additions 21,617,916$ 55,920,920$ 75,258,435$ 105,510,484$ 121,241,550$ 121,241,550$ 121,241,550$ 121,241,550$ 121,241,550$ 121,241,550$ Inflation Factor 2.00% 100.00% 102.00% 104.04% 106.12% 108.24% 110.41%112.62% 114.87% 117.17% 119.51% Total AV - Inflated $21,617,916 $57,039,338 $78,298,876 $111,968,570 $131,235,753 $133,860,468 $136,537,677 $139,268,431 $142,053,799 $144,894,875 Cumulative AV (w/o Prior Years Inflation) $21,617,916 $57,039,338 $78,298,876 $111,968,570 $131,235,753 $133,860,468 $136,537,677 $139,268,431 $142,053,799 $144,894,875 Prior Years AV Inflation Factor 2.00% 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Prior Years AV Inflation Amount $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Cumulative Residential AV ‐ Inflated $21,617,916 $57,039,338 $78,298,876 $111,968,570 $131,235,753 $133,860,468 $136,537,677 $139,268,431 $142,053,799 $144,894,875 Property Tax Revenue Estimate Ad-Valorem 1.00% 216,179$ 570,393$ 782,989$ 1,119,686$ 1,312,358$ 1,338,605$ 1,365,377$ 1,392,684$ 1,420,538$ 1,448,949$ Total AV Tax Due to City 12.70% $27,455 $72,440 $99,440 $142,200 $166,669 $170,003 $173,403 $176,871 $180,408 $184,016 Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Sales Tax Analysis ‐ On‐Site Retail Total (Square Feet) FC 2 Site - Mixed Use (Comm. & Resid.) - - 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Totals - - 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Gross Leasable Area (Square Feet)Absorption FC 2 Site - Mixed Use (Comm. & Resid.) 90% - - 13,500 13,500 13,500 13,500 13,500 13,500 13,500 13,500 Occupied Gross Leasable Area (Square Feet) Occupancy Rate FC 2 Site - Mixed Use (Comm. & Resid.) 95% - - 12,825 12,825 12,825 12,825 12,825 12,825 12,825 12,825 Taxable Sales Projected (Estimate) Sales PSF FC 2 Site - Mixed Use (Comm. & Resid.) 270.00$ - - 3,462,750 3,462,750 3,462,750 3,462,750 3,462,750 3,462,750 3,462,750 3,462,750 Total Taxable Retail Sales Estimated -$ -$ 3,462,750$ 3,462,750$ 3,462,750$ 3,462,750$ 3,462,750$ 3,462,750$ 3,462,750$ 3,462,750$ Annual Sales Taxes to the City FC 2 Site - Mixed Use (Comm. & Resid.) 1.00% - - 34,628 34,628 34,628 34,628 34,628 34,628 34,628 34,628 Total Annual Sales Taxes to the City ‐$ ‐$ 34,628$ 34,628$ 34,628$ 34,628$ 34,628$ 34,628$ 34,628$ 34,628$ 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 POPULATION 272,736 277,555 282,375 287,195 292,015 296,835 301,655 306,475 311,295 316,115 CHANGE IN POPULATION 4,819 4,820 4,820 4,820 4,820 4,820 4,820 4,820 4,820 2.8 # of DU 1,721 1,721 1,721 1,721 1,721 1,721 1,721 1,721 1,721 UTURE SFR 4,854 SFR 306 306 306 306 306 306 306 306 306 UTURE MFR 22,467 MFR 1,415 1,415 1,415 1,415 1,415 1,415 1,415 1,415 1,415 27,321 - COMMERCIAL (ACRES) - FC2 - - 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 - HOTEL (Industrial) (ACRES) 3.30 3.30 6.30 6.30 6.30 6.30 6.30 6.30 6.30 6.30 EXISTING ACRES POLICE Commercial Acres 936 PER ACRE 3,768.38$ 3,768.38$ 4,016.02$ 3,964.93$ 4,111.71$ 4,267.17$ 4,424.58$ 4,589.04$ 4,762.56$ 4,942.53$ 5,129.23$ POLICE Industrial Acres 834 PER ACRE 812.45$ 812.45$ 865.84$ 854.83$ 886.47$ 919.99$ 953.93$ 989.38$ 1,026.79$ 1,065.59$ 1,105.85$ POLICE COSTS - PROJECT SPECIFIC 2,681$ 2,857$ 15,298$ 15,864$ 16,464$ 17,071$ 17,706$ 18,375$ 19,070$ 19,790$ EXISTING ACRES FIRE Commercial Acres 936 PER ACRE 1,234.54$ 1,234.54$ 1,283.28$ 1,360.11$ 1,388.48$ 1,473.53$ 1,505.58$ 1,538.17$ 1,571.53$ 1,605.23$ 1,640.06$ FIRE Industrial Acres 834 PER ACRE 246.05$ 246.05$ 255.76$ 271.08$ 276.73$ 293.68$ 300.07$ 306.57$ 313.21$ 319.93$ 326.87$ FIRE COSTS - PROJECT SPECIFIC 812$ 844$ 5,108$ 5,215$ 5,534$ 5,654$ 5,777$ 5,902$ 6,029$ 6,159$ POPULATION PER DU FACTOR Description 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 POLICE COSTS ‐ BASE MODEL 56,965,945 59,949,430 58,327,199 59,606,056 60,916,106 62,175,703 63,461,731 64,774,754 66,115,351 67,437,658 Police Officer Funding (5/yr)‐ 760,000 1,610,000 2,550,000 3,590,000 4,710,000 5,910,000 7,220,000 8,600,000 10,100,000 Updated POLICE COSTS 56,965,945 60,709,430 59,937,199 62,156,056 64,506,106 66,885,703 69,371,731 71,994,754 74,715,351 77,537,658 COMMERCIAL % OF CALL VOLUME 6.19%3,527,202 3,758,991 3,711,176 3,848,562 3,994,072 4,141,411 4,295,341 4,457,752 4,626,206 4,800,956 ACRES 936 RATE PER ACRE 3,768.38 4,016.02 3,964.93 4,111.71 4,267.17 4,424.58 4,589.04 4,762.56 4,942.53 5,129.23 INDUSTRIAL % OF CALL VOLUME 1.19%677,583.83 722,110.87 712,925.54 739,317.83 767,270.60 795,574.82 825,144.97 856,344.63 888,704.90 922,274.95 ACRES 834 RATE PER ACRE 812.45 865.84 854.83 886.47 919.99 953.93 989.38 1,026.79 1,065.59 1,105.85 FIRE COSTS ‐ BASE MODEL 27,580,234 28,669,066 29,240,512 29,819,340 30,409,445 31,015,435 31,633,479 32,263,817 32,906,691 33,564,824 4.0 Truck Staffing for Millenia ‐ ‐ 985,000 1,040,000 2,190,000 2,300,000 2,410,000 2,525,000 2,635,000 2,755,000 Fire Station Supplies and Services ‐ ‐ 160,000 160,000 320,000 320,000 320,000 320,000 320,000 320,000 Updated Fire Costs 27,580,234 28,669,066 30,385,512 31,019,340 32,919,445 33,635,435 34,363,479 35,108,817 35,861,691 36,639,824 COMMERCIAL % OF CALL VOLUME 4.19%1,155,529 1,201,147 1,273,061 1,299,617 1,379,225 1,409,223 1,439,726 1,470,954 1,502,497 1,535,098 ACRES 936 COMMERCIAL RATE PER ACRE 0.744%1,234.54 1,283.28 1,360.11 1,388.48 1,473.53 1,505.58 1,538.17 1,571.53 1,605.23 1,640.06 INDUSTRIAL % OF CALL VOLUME 0.74% 205,205.95 213,307.22 226,078.13 230,794.02 244,931.42 250,258.62 255,675.51 261,221.06 266,822.69 272,612.26 ACRES 834 RATE PER ACRE 246.05 255.76 271.08 276.73 293.68 300.07 306.57 313.21 319.93 326.87 Table ‐ Public Safety Costs by Land Use Dwelling Type Call Volume (CV) (1) Existing EDUs (2) Existing CV / DU Future EDUs (3) Projected Future CV Future SDF (4)% OF CV COSTS COST PER EDU 56,965,945$ Single Family Units 123,906,773 36,084 3,434 4,854 16,667,871 14.957%50.55% 28,797,864$ 798$ Multi-Family Units 103,105,371 27,814 3,707 22,467 83,283,023 74.735%42.07% 23,963,294$ 862$ Land Use Call Volume (CV) (1) Existing Acres (2) Existing CV / Acre Future Acres (3) Projected Future CV Future SDF (4)% OF CV COSTS COST PER ACRE Commercial Acres 15,176,274 936 16,214 518 8,405,596 7.543%6.19% 3,527,202$ 3,768$ Industrial Acres 2,915,398 834 3,496 882 3,081,488 2.765%1.19%677,584$ 812$ Citywide Total 245,103,815 Dwelling Type Calls for Service (CFS) (1) Existing EDUs (2) Existing CFS / DU Future EDUs (3) Projected Future CFS Future SDF (4)% OF CV COSTS COST PER EDU $ 27,580,234 Single Family Units 3,893 36084 0.10789218 4854 523.708639 21.230%61.137% 16,861,629$ 467.29$ Multi-Family Units 2,161 27814 0.07768169 22466.6667 1745.248693 70.749%33.930% 9,357,870$ 336.44$ 6,054 Land Use Call Volume (CV) (1) Existing Acres (2) Existing CV / Acre Future Acres (3) Projected Future CV Future SDF (4)% OF CV COSTS COST PER ACRE Commercial Acres 267 936 0.28504274 518.417 147.7709996 5.990%4.190% 1,155,529$ 1,234.54$ Industrial Acres 47 834 0.05681055 881.513 50.07923974 2.030%0.744%205,206$ 246.05$ 314 6,368 Police Calls for Service by Land Use Fire Calls for Service by Land Use CITY OF CHULA VISTA, CALIFORNIA SELECTED ANALYSIS OF REVENUES PER CAPITA ASSUMPTIONS TABLE HOUSEHOLD POPULATION EMPLOYEES EMPLOYMENT RESIDENT EQUIVALENT (.05) TOTAL POPULATION BASE 2012 244,408 37,218 1,860 246,268 2013 249,110 37,934 1,900 251,010 2014 253,812 38,650 1,930 255,742 2015 258,514 39,366 1,970 260,484 2016 263,216 40,082 2,000 265,216 2017*267,917 40,798 2,040 269,957 2018 272,736 41,532 2,080 274,816 2019 277,555 42,266 2,110 279,665 2020 282,375 43,000 2,150 284,525 2021 287,195 43,734 2,190 289,385 2022 292,015 44,468 2,220 294,235 2023 296,835 45,201 2,260 299,095 2024 301,655 45,935 2,300 303,955 2025 306,475 46,669 2,330 308,805 2026 311,295 47,403 2,370 313,665 2027 316,115 48,137 2,410 318,525 * As of 01/01/2017 Per State of California Department of Finance, Chula Vista Population is 267,917. ORIGINAL FC-2 New City Model Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Residential - Townhomes - - 234 494 754 754 754 754 754 754 Residential - Apartments - 260 78 468 806 806 806 806 806 806 Subtotal (Per Capita) - 260 312 962 1,560 1,560 1,560 1,560 1,560 1,560 Employment Population 10 13 16 48 78 78 78 78 78 78 Totals 10 273 328 1,010 1,638 1,638 1,638 1,638 1,638 1,638 Residential - Townhomes - - 90 190 290 290 290 290 290 290 Residential - Apartments - 100 30 180 310 310 310 310 310 310 Totals - 100 120 370 600 600 600 600 600 600 Hotel 1 - # rooms 148 148 148 148 148 148 148 148 148 148 Hotel 2 - # rooms - - 152 152 152 152 152 152 152 152 Totals 148 148 300 300 300 300 300 300 300 300 Average Hotel Daily Rate - San Diego County Average* 150.26$ 152.55$ 154.87$ 157.19$ 159.55$ 161.94$ 164.37$ 166.84$ 169.34$ 171.88$ Average Hotel Daily Rate - Developer Assigned* 150.26$ 152.55$ 154.87$ 157.19$ 159.55$ 161.94$ 164.37$ 166.84$ 169.34$ 171.88$ Average Hotel Occupancy* 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% Developer Provided Hotel Occupancy* 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% Transient Occupancy Tax Rate (per room night) 10% 10% 10% 10% 10% 10%10% 10% 10% 10% Absorption Rate 100% 100% 75% 100% 100% 100% 100% 100% 100% 100% Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 General Fund Revenues Tax Revenues Property Tax AV $27,455 $43,679 $33,361 $170,931 $226,496 $231,026 $235,647 $293,319 $299,185 $305,169 Sales and Use Tax Per Capita $0 $33,373 $40,722 $127,707 $210,517 $214,052 $217,636 $221,268 $224,946 $228,161 Sales and Use Tax ‐ Project Specific Separate Analysis $0 $0 $34,628 $34,628 $34,628 $34,628 $34,628 $34,628 $34,628 $34,628 Transient Occupancy Tax Per Capita $158 $4,288 $6,508 $20,153 $32,758 $32,889 $33,015 $33,137 $33,255 $33,422 Transient Occupancy Tax - Project On-Site $625,819 $635,349 $980,612 $1,327,094 $1,347,001 $1,367,206 $1,387,714 $1,408,530 $1,429,658 $1,451,103 Motor Vehicle In-Lieu of VLF Per Capita $0 $20,813 $25,280 $78,924 $129,631 $131,334 $133,090 $134,952 $136,809 $138,765 Franchise Fees Per Capita $0 $11,380 $13,643 $42,065 $68,209 $68,205 $68,201 $68,251 $68,299 $68,398 Other Taxes Per Capita $0 $1,185 $1,396 $4,150 $6,536 $6,426 $6,316 $6,206 $6,043 $5,934 Subtotal Tax Revenues $653,432 $750,068 $1,136,149 $1,805,652 $2,055,776 $2,085,764 $2,116,247 $2,200,290 $2,232,823 $2,265,579 Other Revenues Per Capita $0 $1,564 $1,878 $5,627 $9,082 $8,882 $8,843 $8,653 $8,670 $8,488 Licenses and Permits Per Capita $0 $1,302 $1,569 $4,857 $7,906 $7,936 $7,964 $7,992 $8,018 $8,044 Fines, forfeitures, penalties Per Capita $0 $1,030 $1,238 $3,819 $6,197 $6,254 $6,257 $6,312 $6,314 $6,366 Use of Money & Property Per Capita $0 $2,295 $2,729 $8,341 $13,462 $13,401 $13,291 $13,234 $13,130 $13,078 Charges for Services No Forecast $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Intergovernmental Per Capita $0 $1,920 $2,287 $7,001 $11,272 $11,194 $11,119 $11,046 $10,975 $10,956 Subtotal Other Revenues $0 $6,548 $7,823 $24,017 $38,838 $38,785 $38,631 $38,583 $38,437 $38,443 Total General Fund Revenues $653,432 $756,616 $1,143,972 $1,829,669 $2,094,614 $2,124,550 $2,154,878 $2,238,874 $2,271,260 $2,304,022 General Fund Expenditures General Government Per Capita $108 $3,651 $4,582 $14,608 $25,095 $26,107 $26,987 $27,991 $28,662 $28,516 Community Development (20%)Per Capita $22 $572 $712 $2,268 $3,870 $4,007 $4,100 $4,202 $4,281 $4,280 Public Works/Engineering Per Capita $199 $2,073 $3,137 $9,996 $17,004 $18,154 $18,571 $19,034 $19,392 $19,389 PC/EMP Base Drainage Management System 26.50$ $358 $7,355 $7,502 $7,652 $7,805 $7,962 $8,121 $8,283 $8,449 $8,618 Building Management System 4.10 $55 $1,137 $1,159 $1,183 $1,206 $1,230 $1,255 $1,280 $1,306 $1,332 Parks Management System 15.68 $212 $4,351 $4,438 $4,527 $4,617 $4,710 $4,804 $4,900 $4,998 $5,098 Open Space Management System 6.72 $91 $1,865 $1,902 $1,940 $1,979 $2,018 $2,059 $2,100 $2,142 $2,185 Fleet Management System 3.73 $50 $1,036 $1,057 $1,078 $1,099 $1,121 $1,144 $1,167 $1,190 $1,214 Pavement Annual (PMP)14.18 $191 $3,937 $4,015 $4,096 $4,178 $4,261 $4,346 $4,433 $4,522 $4,612 General Govt Management System 0.65 $9 $181 $185 $189 $192 $196 $200 $204 $208 $212 Urban Forestry Management System 6.72 $91 $1,865 $1,902 $1,940 $1,979 $2,018 $2,059 $2,100 $2,142 $2,185 78.28$ $1,057 $21,726 $22,161 $22,604 $23,056 $23,517 $23,988 $24,467 $24,957 $25,456 Community Services Per Capita $231 $6,051 $7,457 $23,753 $40,234 $41,218 $42,166 $43,217 $44,029 $44,022 Public Safety: Police Services Per Capita $2,073 $58,521 $67,158 $208,055 $339,119 $340,507 $341,992 $343,586 $345,263 $346,795 Police Services Separate Analysis $2,681 $2,857 $15,298 $15,864 $16,464 $17,071 $17,706 $18,375 $19,070 $19,790 Fire Services Per Capita $1,003 $27,986 $33,667 $104,085 $169,289 $169,857 $170,471 $171,138 $171,843 $172,606 Fire Services Separate Analysis $812 $844 $5,108 $5,215 $5,534 $5,654 $5,777 $5,902 $6,029 $6,159 Animal Control Services Per Capita $112 $2,947 $3,632 $11,569 $19,597 $20,095 $20,552 $21,058 $21,452 $21,451 Total Public Safety $6,682 $93,155 $124,863 $344,788 $550,002 $553,184 $556,499 $560,059 $563,656 $566,801 Total General Fund Expenditures $8,298 $127,229 $162,911 $418,018 $659,261 $666,187 $672,310 $678,970 $684,975 $688,463 Projected Net Revenues/(Shortfall)$645,133 $629,387 $981,061 $1,411,651 $1,435,353 $1,458,362 $1,482,568 $1,559,904 $1,586,285 $1,615,559 Population Number of Homes Transient Occupancy Tax (Project Specific) Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Property Tax Analysis Residential Units Multi‐Family Residential ‐ Attached Townhomes Total Cumulative MFR Units 290 - - 90 190 290 290 290 290 290 290 Total Cumulative Residents 2.60 - - 234 494 754 754 754 754 754 754 Percentage Complete 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Constructed Assessed Values $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Multi‐Family Attached Apartments Total Cumulative MFR Units 610 - 100 30 180 310 310 310 310 310 310 Total Cumulative Residents 2.60 - 260 78 468 806 806 806 806 806 806 Percentage Complete 0% 16% 5% 30% 51% 51% 51% 100% 100% 100% Constructed Assessed Values $73,815,000 $0 $12,100,820 $3,630,246 $21,781,475 $37,512,541 $37,512,541 $37,512,541 $73,815,000 $73,815,000 $73,815,000 Total Cumulative Residents ‐ 260 312 962 1,560 1,560 1,560 1,560 1,560 1,560 FC 1 Parcel ‐ Commercial Center Percentage Complete 78% 88% 97% 100% 100% 100% 100% 100% 100% 100% Constructed Assessed Values -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ FC 2 Parcel ‐ Mixed Use Commercial Percentage Complete 0% 0% 0% 100% 100% 100% 100% 100% 100% 100% Constructed Assessed Values 83,429,210$ -$ -$ -$ 83,429,210$ 83,429,210$ 83,429,210$ 83,429,210$ 83,429,210$ 83,429,210$ 83,429,210$ Hotel Percentage Complete 49% 49% 49% 49% 100% 100% 100% 100% 100% 100% Constructed Assessed Values 43,820,100$ 21,617,916$ 21,617,916$ 21,617,916$ 21,617,916$ 43,820,100$ 43,820,100$ 43,820,100$ 43,820,100$ 43,820,100$ 43,820,100$ Constructed Assessed Values Total Current Period Assessed Value Additions 21,617,916$ 33,718,736$ 25,248,162$ 126,828,601$ 164,761,851$ 164,761,851$ 164,761,851$ 201,064,310$ 201,064,310$ 201,064,310$ Inflation Factor 2.00% 100.00% 102.00% 104.04% 106.12% 108.24% 110.41%112.62% 114.87% 117.17% 119.51% Total AV - Inflated $21,617,916 $34,393,110 $26,268,188 $134,591,526 $178,343,526 $181,910,397 $185,548,605 $230,959,691 $235,578,885 $240,290,463 Cumulative AV (w/o Prior Years Inflation) $21,617,916 $34,393,110 $26,268,188 $134,591,526 $178,343,526 $181,910,397 $185,548,605 $230,959,691 $235,578,885 $240,290,463 Prior Years AV Inflation Factor 2.00% 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Prior Years AV Inflation Amount $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Cumulative Residential AV ‐ Inflated $21,617,916 $34,393,110 $26,268,188 $134,591,526 $178,343,526 $181,910,397 $185,548,605 $230,959,691 $235,578,885 $240,290,463 Property Tax Revenue Estimate Ad-Valorem 1.00% 216,179$ 343,931$ 262,682$ 1,345,915$ 1,783,435$ 1,819,104$ 1,855,486$ 2,309,597$ 2,355,789$ 2,402,905$ Total AV Tax Due to City 12.70% $27,455 $43,679 $33,361 $170,931 $226,496 $231,026 $235,647 $293,319 $299,185 $305,169 Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Sales Tax Analysis ‐ On‐Site Retail Total (Square Feet) FC 1 Site - Commercial Center - - - - - - - - - - FC 2 Site - Mixed Use (Comm. & Resid.) - - 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Totals - - 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Gross Leasable Area (Square Feet)Absorption FC 1 Site - Commercial Center 96% - - - - - - - - - - FC 2 Site - Mixed Use (Comm. & Resid.) 90% - - 13,500 13,500 13,500 13,500 13,500 13,500 13,500 13,500 Occupied Gross Leasable Area (Square Feet) Occupancy Rate FC 1 Site - Commercial Center 95% - - - - - - - - - - FC 2 Site - Mixed Use (Comm. & Resid.) 95% - - 12,825 12,825 12,825 12,825 12,825 12,825 12,825 12,825 Taxable Sales Projected (Estimate) Sales PSF FC 1 Site - Commercial Center 270.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ FC 2 Site - Mixed Use (Comm. & Resid.) 270.00$ - - 3,462,750 3,462,750 3,462,750 3,462,750 3,462,750 3,462,750 3,462,750 3,462,750 Total Taxable Retail Sales Estimated -$ -$ 3,462,750$ 3,462,750$ 3,462,750$ 3,462,750$ 3,462,750$ 3,462,750$ 3,462,750$ 3,462,750$ Annual Sales Taxes to the City FC 1 Site - Commercial Center 1.00% -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ FC 2 Site - Mixed Use (Comm. & Resid.) 1.00% - - 34,628 34,628 34,628 34,628 34,628 34,628 34,628 34,628 Total Annual Sales Taxes to the City ‐$ ‐$ 34,628$ 34,628$ 34,628$ 34,628$ 34,628$ 34,628$ 34,628$ 34,628$ 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 POPULATION 272,736 277,555 282,375 287,195 292,015 296,835 301,655 306,475 311,295 316,115 CHANGE IN POPULATION 4,819 4,820 4,820 4,820 4,820 4,820 4,820 4,820 4,820 2.8 # of DU 1,721 1,721 1,721 1,721 1,721 1,721 1,721 1,721 1,721 UTURE SFR 4,854 SFR 306 306 306 306 306 306 306 306 306 UTURE MFR 22,467 MFR 1,415 1,415 1,415 1,415 1,415 1,415 1,415 1,415 1,415 27,321 - COMMERCIAL (ACRES) - FC2 - - 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 - COMMERCIAL (ACRES) - FC1 - - - - - - - - - - - HOTEL (Industrial) (ACRES) 3.30 3.30 6.30 6.30 6.30 6.30 6.30 6.30 6.30 6.30 EXISTING ACRES POLICE Commercial Acres 936 PER ACRE 3,768.38$ 3,768.38$ 4,016.02$ 3,964.93$ 4,111.71$ 4,267.17$ 4,424.58$ 4,589.04$ 4,762.56$ 4,942.53$ 5,129.23$ POLICE Industrial Acres 834 PER ACRE 812.45$ 812.45$ 865.84$ 854.83$ 886.47$ 919.99$ 953.93$ 989.38$ 1,026.79$ 1,065.59$ 1,105.85$ POLICE COSTS - PROJECT SPECIFIC 2,681$ 2,857$ 15,298$ 15,864$ 16,464$ 17,071$ 17,706$ 18,375$ 19,070$ 19,790$ EXISTING ACRES FIRE Commercial Acres 936 PER ACRE 1,234.54$ 1,234.54$ 1,283.28$ 1,360.11$ 1,388.48$ 1,473.53$ 1,505.58$ 1,538.17$ 1,571.53$ 1,605.23$ 1,640.06$ FIRE Industrial Acres 834 PER ACRE 246.05$ 246.05$ 255.76$ 271.08$ 276.73$ 293.68$ 300.07$ 306.57$ 313.21$ 319.93$ 326.87$ FIRE COSTS - PROJECT SPECIFIC 812$ 844$ 5,108$ 5,215$ 5,534$ 5,654$ 5,777$ 5,902$ 6,029$ 6,159$ POPULATION PER DU FACTOR