Prepared by:
Kosmont Companies
Infrastructure Financing District
Analysis Summary
September 2025
Background and Summary
2 • The City of Fortuna is evaluating the use of a special purpose financing district such as an Enhanced Infrastructure Financing Districts (EIFD) to capture value from potential new development to fund critical infrastructure and community investment priorities • EIFD tax increment financing (TIF) capacity is estimated to range of up to $42M over time • In addition to the EIFD funding capacity, the EIFD would elevate the City’s ability to attract other public funding, particularly state and federal grants
• While a City-only financing district strategy would likely achieve favorable “return on investment” for the City, a broader partnership including the County of Humboldt would further improve financial feasibility
• City staff and consultants have had preliminary discussions with County staff and elected officials, which indicate receptiveness to the concept of EIFD partnership, subject to further financial analysis Background and Summary (Continued)
3 • Current analysis is focused on determining the appropriate amount of each participating agency’s financial participation (i.e., tax increment allocation), such that each agency would achieve a positive “return on investment” (i.e., general fund fiscal benefit) from EIFD participation • Draft fiscal impact analysis supports a range of 35% to 50% allocation from both the City and County to balance EIFD funding capacity and general fund fiscal benefit for each agency • Subject to further review and feedback from the City and County teams, immediate next steps could include consideration of a non-binding Resolution of Intention by each agency’s governing body 4 $0M
$100M
$200M
$300M
$400M
$500M
$600M
0 5 10 15 20 25 30 35 40 45 50 55
Years from District Formation
Note: Illustrative. Conservative 2% growth of existing assessed value (A/V) shown; does not include mark-to-market increases associated with property sales.
What is Tax Increment Financing (TIF) – Not a New Tax
Baseline Property Value at District Formation
All Property Tax Stays with General Fund
New Property Value from
New Development / Rehabilitation
Some Portion of Property Tax Available to TIF District, Remainder Stays with General Fund
Assessed
Property Value
within District
Boundaries
New Total
Value After
TIF District
All Property
Tax Goes to
General Fund
EIFD Fundamentals
Communicating in a Digital World
5 45 years from first bond issuance Long Term
Districts
Public Financing Authority (PFA) implements Infrastructure Financing Plan Governance (IFP) Mandatory public hearings for formation with protest opportunity; no public vote Approvals
Any property with useful life of 15+ years & of communitywide significance; purchase, construction, expansion, improvement, seismic retrofit, rehabilitation, and maintenance
Eligible
Projects
Types of Projects EIFD Can Fund
Partial List
6 Roadway / Parking / Transit
Brownfield Remediation
Storm / Flood / Public Facilities Parks / Open Space / Recreation Libraries & Childcare Facilities Affordable Housing
Broadband Small Business /
Nonprofit Facilities
Wildfire Prevention / Other
Climate Change Response
Why are Public Agencies Authorizing Financing Districts? 7 1. Return on Investment: Private sector investment induced by district commitment accelerates growth of net fiscal revenues, job creation, housing production, essential infrastructure improvements
2. Ability to attract additional funds / other public money (“OPM”) – tax increment from other entities (county, special districts), federal / state grants / loans (e.g., for transit-oriented development, water, housing, parks, remediation)
Districts in Progress Statewide
(Partial List of EIFDs/CRDs/CRIAs)
Fully Formed In Formation Process Under Evaluation
Jurisdiction Purpose
Apple Valley Industrial and housing supportive infrastructure Banning (CRIA) Downtown revitalization, industrial infrastructure Barstow Industrial and housing supportive infrastructure Brentwood Housing, employment, and transit-supportive infrastructure Buena Park Mall reimagination, tourism-supportive infrastructure Calipatria (CRD) Economic and climate resilience infrastructure Carson + L.A. County Remediation, affordable housing, recreation Citrus Heights Mall reimagination
Covina Downtown housing and blended use supportive infrastructure Fairfield Downtown, housing, and transit-supportive infrastructure Fresno Downtown, housing and transit-supportive infrastructure Fresno County Industrial and commercial supportive infrastructure Humboldt County Coastal mixed-use and energy supportive infrastructure Inglewood (CRD) Transportation and affordable housing
Imperial County Renewable energy, housing and infrastructure La Verne + L.A. County Housing and transit-supportive infrastructure Lakewood + L.A. County Mall reimagination, smart streets, affordable housing Long Beach Economic empowerment and affordable housing
Los Angeles (Downtown, San Pedro, other) Affordable housing and transit-supportive infrastructure Los Angeles County West Carson Housing / bio-science / tech infrastructure Madera County (3 Districts) Water, sewer, roads and other housing infrastructure Modesto + Stanislaus County Downtown, housing, and recreation infrastructure Mount Shasta Rural brownfield mixed-use infrastructure
Napa Downtown, housing, tourism supportive infrastructure Norwalk + L.A. County Affordable housing and infrastructure Ontario Airport-related, blended use, infrastructure
Palmdale + L.A. County Housing, blended use, transit infrastructure Pittsburg Housing, commercial, and tech park infrastructure Placentia + Orange County Housing and TOD infrastructure Rancho Cucamonga Blended use and connectivity infrastructure Redlands Education related blended use, mall reimagination Redondo Beach + L.A. County Parks / open space, recreation infrastructure Riverside County Thousand Palms Housing, hospitality, medical supportive infrastructure Sacramento County (Unincorporated) Industrial / commercial supportive infrastructure Salinas Water, sewer, and other housing supportive infrastructure San Rafael (EIFD + CRD) Blended-use and climate resilience infrastructure Sanger Commercial, hospitality, supportive infrastructure Santa Cruz (EIFD + CRD) Downtown, blended use, and climate resilience infrastructure Santa Rosa + County of Sonoma Downtown investment, affordable housing, aging infrastructure Vacaville Housing and business park infrastructure
Yucaipa Housing and commercial infrastructure
Report Card on City / County / Special District EIFD Partnerships 9 1. Placentia + Orange County
2. La Verne + Los Angeles County
3. Palmdale + Los Angeles County
4. Carson + Los Angeles County
5. Rancho Cucamonga + Rancho Cucamonga Fire Protection District
6. Lakewood + Los Angeles County
7. Stockton + Lathrop + Manteca + San Joaquin County
8. Gonzales + Monterey County
9. Santa Rosa + Sonoma County
Potential EIFD Boundary:
Specific Plan + Other Sites
10 • Focus on Mill Site Specific Plan area
and certain other opportunity site areas
along major corridors
• Approx. 372 acres (12% of City)
• Approx. $178M in existing assessed
value (13% of City)
Source: Humboldt County Auditor-Controller (2025)
11 a) Roadway interchange improvements
b) Pedestrian access to Eel River
c) Downtown improvements (e.g., streetscape, beautification) d) Other multimodal improvements
e) Trails
f) Parks and open space
g) Affordable housing
Example Potential Investments to Receive EIFD Funding
12 Example Development Assumptions with Specific Plan Area Absorption Assumed over ~20 Years
Note: AV at buildout values in current 2025 dollars
Sources: Mill District Specific Plan (October 2024 Draft); CoStar (2025) Area # SF or Units Estimated
AV Factor
Estimated
Total AV at Buildout
Residential 100 units $250K per unit $25.0 million
Hotel 125 units $250K per unit $31.3 million
Commercial / Retail / Flex 171,100 SF $300 PSF $51.3 million Industrial / Flex 693,400 SF $170 PSF $117.9 million
Total New Development Assumed within EIFD Study Area $194.2 million 13 • Primary non-school recipients and potential
contributors of property tax are City and County
• City share varies by area and averages ~4.5%
each of every $1 collected in property taxes
▪ City additionally receives equivalent of ~11.4% of
property tax in lieu of motor vehicle license fees
(MVLF), also available to EIFD
• County General Fund share varies by area and
averages ~15.5%
▪ County additionally receives property tax in lieu of
MVLF, also available to EIFD, but not incorporated
into this analysis to be conservative
• School-related entities cannot participate
As counties tend to rely more heavily on property tax revenue sources generated by new development within incorporated jurisdictions, it is Kosmont’s experience that it is not reasonable to assume allocation of property tax in lieu of MVLF by the County. As cities benefit from additional non-property tax revenue sources (e.g., sales tax, transient occupancy tax) from new development, it is Kosmont’s experience that it is reasonable for cities to consider contributing property tax in lieu of MVLF.
Tax Rate Area (TRA) weighted average distributions for EIFD Study Area shown. Post-ERAF (Education Revenue Augmentation Fund) distribution.
Parcels within former Redevelopment Agency Project Areas are subject to RPTTF revenue flow until expiration of ROPS obligations.
Source: Humboldt County Auditor Controller (2025)
Property Tax Revenues Available to EIFD
Property Tax Distribution
City
4.5% County
15.5%
Other / School
Entities (not eligible)
80.0%
+ MVLF ~11.4% = 15.9%
14 City allocation includes allocation from both AB8 + MVLF in-lieu. County allocation does not include MVLF in-lieu. * Bonding capacity assumes Year 5 is first bond issuance for EIFD. “Year 5 means fifth year of revenue following district formation. Net proceeds shown. Bondable revenue assumes $25,000 admin charge, 150% debt service coverage. 6.0% interest rate; 30-year term. Proceeds net of 2% underwriter's discount, estimated reserve fund (maximum annual debt service), costs of issuance estimated at $350,000.Source: Kosmont Financial Services (KFS), registered municipal advisor.
EIFD Revenue and Bonding Capacity Scenarios
EIFD Revenue
Allocation Scenario
Year 5
Accumulated
Revenue +
Bonding
Capacity*
Year 10
Accumulated
Revenue +
Bonding
Capacity*
50-Year
Present-Value
@ 3%
Discount Rate
50-Year
Nominal
Total
A) City 35% $94,000 $382,900 $5,467,400 $15,019,500
B) City 50% $134,300 $791,800 $7,810,600 $21,456,400
C) City 35% + County 35% $154,000 $1,004,500 $10,643,000 $29,442,100 D) City 50% + County 50% $220,000 $1,718,800 $15,204,200 $42,060,200 15 Estimated Fiscal Impacts by Agency
Note: Assumes installation of necessary public infrastructure.
Source: Kosmont Companies (2025)
Annual
@ Year 10
Year 0-50
Nominal
Total
Year 0-50
Present Value
@ 3.0%
City of Fortuna
Estimated Fiscal Revenues (Net of 50% EIFD Allocation) $1,231,700 $145,573,400 $56,525,300 Estimated Fiscal Expenditures ($335,300) ($49,858,100) ($18,851,900) Estimated Net Fiscal Impact to City $896,400 $95,715,300 $37,673,400 County of Humboldt
Estimated Fiscal Revenues (Net of 50% EIFD Allocation) $462,350 $64,760,500 $24,620,600 Estimated Fiscal Expenditures ($215,600) ($31,891,200) ($12,064,100) Estimated Net Fiscal Impact to County $246,750 $32,869,300 $12,556,500 County Measure O Sales Tax - Transportation $247,200 $37,413,500 $14,124,500 Public Agency and Community Return on Investment
16 • Housing: 200+ units
• Economic revitalization, addressing critical infrastructure needs • Job creation, wages:
▪ 2,100+ temporary construction-related jobs* in City and County, ~$153M related new wage income ▪ 780+ permanent jobs in the City and County, related ~$41M in new annual wage income • Acceleration of development and related fiscal revenues for taxing entities:
▪ $38 million in present-value fiscal benefit for CITY general fund over 50 years, net of tax increment contribution to TIF district and net of estimated fiscal expenditures (50% City TIF allocation scenario) ▪ $13 million in present-value fiscal benefit for COUNTY general fund over 50 years, net of tax increment contribution to TIF district and net of estimated fiscal expenditures (50% County TIF allocation scenario) ▪ $14 million in present-value new sales tax funding for COUNTY transportation services (separate from County general fund) • Attract other funding not otherwise available for projects within the community * Construction job-years, where one job-year is defined as one year of employment for one individual 17 Financing Districts work better with a Multi-Agency Partnership & Attract Other Funding
Other Public Sources
▪ Cap-and-Trade / HCD grant & loan
programs (AHSC, IIG, TCC,CERF)
▪ Prop 68 parks & open space grants
▪ Prop 1 water/sewer funds
▪ Caltrans ATP / HSIP grants
▪ Federal EDA / DOT / EPA funding
▪ Federal ARPA, Invest Act, IIJ Act
Other Private Sources
▪ Development Agreement / impact fees
▪ Benefit assessments (e.g., contribution
from CFD)
▪ Private investment
• Ideal strategy includes City / County partnership
• Districts which involve a multi-agency joint effort are more likely to win state grant funding sources • Districts explicitly increase scoring for CA state housing grants (e.g., IIG, AHSC, TCC) 18 Illustrative EIFD Formation Schedule
▪ Tax increment allocation begins fiscal year following district formation ▪ Debt issuance, if desired, would occur after a stabilized level of tax increment has been established (may be 3-5 years) Target Date Task
Q1-Q3 2025
a) Conduct outreach/discussion among City staff and Council, County staff and Board of Supervisors, other relevant stakeholders
b) Final determination of EIFD boundaries, targeted projects, governing Public Financing Authority (PFA) Board composition
Nov / Dec 2025 c) City Council / Board of Supervisors consider Resolution(s) of Intention (ROI) and formally establish PFA January 2026 d) PFA directs the drafting of the Infrastructure Financing Plan (IFP) March 2026 e) Distribute draft IFP to property owners, affected taxing entities, City Council, County Board of Supervisors April 2026 f) PFA holds an initial public meeting to present the draft IFP to the public and property owners May 2026 g) City Council / Board of Supervisors consider resolution(s) approving IFP June 2026 h) PFA holds first public hearing to hear additional comments and take action to modify or reject IFP (at least 30 days after “f”)
July 2026 i) PFA holds second public hearing to consider oral and written protests and take action to terminate proceedings or adopt IFP and form the district by resolution (at least 30 days after “h”) 19 Potential Next Steps
• Address questions, receive and incorporate feedback from City and County staff and elected officials • Based on City/County feedback, pursue district formation as soon as feasible (first action would be City Council consideration of a Resolution of Intention as lead agency) 20 THANK YOU
Questions?
Kosmont Companies
1601 N. Sepulveda Blvd. #382 Manhattan Beach, CA 90266
Ph: (424) 297-1070 | Fax: (424) 286-4632
www.kosmont.com
Disclaimer
21 The high-level analyses, projections, assumptions, rates of return, and any examples presented herein are for illustrative purposes and are not a guarantee of actual and/or future results. Project pro forma and tax analyses are projections only. Actual results may differ from those expressed in this analysis.
Discussions or descriptions of potential financial tools that may be available to the Client and public agencies are included for informational purposes only and are not intended to be to be “advice” within the context of this Analysis.
Municipal Advisory activities are conducted through Kosmont Companies’ affiliate, Kosmont Financial Services, which is Registered as a Municipal Advisor with the SEC and MSRB.
Fortuna Financing District - Fiscal Impact Analysis DRAFT Overview of Fiscal Impacts Key Land Use Assumptions (Buildout) Annual
@ Year 10
Year 0-50
Nominal
Total
Year 0-50
Present Value
@ 3.0%
City of Fortuna Residential - Market Rate Rental 200 DU Estimated Fiscal Revenues (Net of EIFD Allocation) $1,231,700 $145,573,400 $56,525,300 Hotel 125 rooms Estimated Fiscal Expenditures ($335,300) ($49,858,100) ($18,851,900) Industrial / Flex 500,000 SF Estimated Net Fiscal Impact to City $896,400 $95,715,300 $37,673,400 Commercial / Retail 75,000 SF County of Humboldt
Estimated Fiscal Revenues (Net of EIFD Allocation) $462,350 $64,760,500 $24,620,600 Estimated Fiscal Expenditures ($215,600) ($31,891,200) ($12,064,100) Estimated Net Fiscal Impact to County $246,750 $32,869,300 $12,556,500 County Measure O Sales Tax - Transportation $247,200 $37,413,500 $14,124,500 Notes:
Assumes installation of necessary public infrastructure Assumes 10-20 year absorption and 50-year financing district duration Actual absorption will depend on market conditions and other factors Values in 2025 dollars
Project Component
September 2025 Page 1 of 19
Fortuna Financing District - Fiscal Impact Analysis DRAFT Summary of Estimated Fiscal Impacts to City Stabilized
Year 5 Year 10 Year 20 Year 30 Year 40 Year 50 Year 55
2031 2036 2046 2056 2066 2076 2081
Stabilized
Escalation
Rate
Year 0-50 Nominal
Total
Year 0-50
Present Value @
3.0%
City of Fortuna General Fund Revenues
Property Tax $40,100 $72,200 $166,200 $223,359 $300,176 $403,411 $467,664 3.0% $9,738,100 $3,715,300 Property Tax Allocation to EIFD ($20,000) ($36,100) ($83,100) ($111,679) ($150,088) ($201,706) $0 3.0% ($4,869,100) ($1,857,700) Property Tax In-Lieu of MVLF $93,600 $169,400 $391,400 $526,009 $706,912 $950,031 $1,101,346 3.0% $22,926,300 $8,744,500 Property Tax In-Lieu of MVLF Allocation to EIFD ($46,800) ($84,700) ($195,700) ($263,004) ($353,456) ($475,015) $0 3.0% ($11,463,200) ($4,372,200) Property Transfer Tax $2,300 $4,100 $9,500 $12,767 $17,158 $23,059 $26,732 3.0% $556,500 $212,300 Sales and Use Tax - Direct / On-Site $162,600 $377,000 $1,013,200 $1,361,656 $1,829,952 $2,459,302 $2,851,005 3.0% $58,559,700 $22,058,400 Measure E/G Sales Tax - Direct / On-Site $65,200 $0 $0 $0 $0 $0 $0 3.0% $365,700 $305,900 Sales and Use Tax - Indirect / Off-Site $47,900 $85,300 $194,600 $261,526 $351,469 $472,345 $547,578 3.0% $11,412,000 $4,357,400 Measure E/G Sales Tax - Indirect / Off-Site $19,200 $0 $0 $0 $0 $0 $0 3.0% $93,800 $78,000 Transient Occupancy Tax $499,800 $579,400 $778,700 $1,046,508 $1,406,419 $1,890,109 $2,191,155 3.0% $48,718,600 $19,673,800 Franchise Fees $10,100 $21,300 $54,200 $72,840 $97,891 $131,558 $152,511 3.0% $3,146,900 $1,190,500 Business License $7,500 $14,100 $33,300 $44,752 $60,144 $80,828 $93,702 3.0% $1,946,300 $740,800 Park and Recreation $3,400 $7,800 $20,900 $28,088 $37,748 $50,730 $58,810 3.0% $1,207,800 $454,900 Police Department $5,300 $11,100 $28,200 $37,898 $50,932 $68,449 $79,351 3.0% $1,637,600 $619,600 Other Recurring $5,100 $10,800 $27,500 $36,958 $49,668 $66,750 $77,381 3.0% $1,596,400 $603,800 Estimated Total Revenues $895,300 $1,231,700 $2,438,900 $3,277,678 $4,404,925 $5,919,850 $7,647,234 $145,573,400 $56,525,300 City of Fortuna General Fund Expenditures
Police $81,900 $172,100 $438,500 $589,307 $791,980 $1,064,355 $1,233,879 3.0% $25,458,000 $9,630,200 Parks and Recreation $13,500 $31,400 $84,400 $113,427 $152,436 $204,861 $237,490 3.0% $4,877,900 $1,837,400 Public Works $7,800 $16,300 $41,700 $56,041 $75,315 $101,217 $117,338 3.0% $2,420,200 $915,300 Comm Development - Planning $2,700 $5,700 $14,500 $19,487 $26,189 $35,195 $40,801 3.0% $841,700 $318,400 Community Promotion $1,500 $3,200 $8,000 $10,751 $14,449 $19,418 $22,511 3.0% $464,700 $175,800 Library Facilities $200 $400 $1,200 $1,613 $2,167 $2,913 $3,377 3.0% $69,000 $25,900 City Council $600 $1,200 $3,100 $4,166 $5,599 $7,525 $8,723 3.0% $179,700 $67,900 City Attorney $700 $1,500 $3,700 $4,972 $6,683 $8,981 $10,411 3.0% $214,900 $81,300 City Manager $2,200 $4,600 $11,800 $15,858 $21,312 $28,642 $33,204 3.0% $685,100 $259,200 City Clerk $1,000 $2,000 $5,100 $6,854 $9,211 $12,379 $14,351 3.0% $296,100 $112,000 General Government $3,900 $8,100 $20,800 $27,953 $37,567 $50,487 $58,528 3.0% $1,207,500 $456,800 Risk Management $9,600 $20,200 $51,400 $69,077 $92,834 $124,761 $144,633 3.0% $2,984,000 $1,128,800 Finance $3,000 $6,200 $15,800 $21,234 $28,537 $38,351 $44,459 3.0% $917,500 $347,200 Transfer Out - Other Funds Support $3,100 $6,600 $16,900 $22,712 $30,523 $41,021 $47,554 3.0% $980,600 $370,800 Measure E - Other / Non-CIP $26,600 $55,800 $142,300 $191,239 $257,010 $345,399 $400,413 3.0% $8,261,200 $3,124,900 Estimated Total Expenditures $158,300 $335,300 $859,200 $1,154,693 $1,551,811 $2,085,504 $2,417,671 $49,858,100 $18,851,900 Estimated Annual Net Fiscal Impact $737,000 $896,400 $1,579,700 $2,122,985 $2,853,114 $3,834,347 $5,229,563 $95,715,300 $37,673,400 Revenue / Cost Ratio 5.66 3.67 2.84 2.84 2.84 2.84 3.16 2.92 3.00 Notes:
Assumes installation of necessary public infrastructure Values in 2025 dollars
Select years shown for illustration
September 2025 Page 2 of 19
Fortuna Financing District - Fiscal Impact Analysis DRAFT Summary of Estimated Fiscal Impacts to County Stabilized Year 5 Year 10 Year 20 Year 30 Year 40 Year 50 Year 55
2031 2036 2046 2056 2066 2076 2081
Stabilized
Escalation
Rate
Year 0-50
Nominal
Total
Year 0-50
Present Value @
3.0%
County of Humboldt Revenues
Property Tax $138,100 $248,900 $573,100 $770,198 $1,035,082 $1,391,064 $1,612,625 3.0% $33,580,100 $12,811,800 Property Tax - County Allocation to EIFD ($69,100) ($124,500) ($286,500) ($385,032) ($517,451) ($695,411) $0 3.0% ($16,787,700) ($6,405,100) Property Tax in Lieu of MVLF $107,600 $194,800 $450,100 $604,897 $812,931 $1,092,511 $1,266,519 3.0% $26,364,800 $10,056,000 Property Tax in Lieu of MVLF - County Allocation to EIFD $0 $0 $0 $0 $0 $0 $0 3.0% $0 $0 Property Transfer Tax $2,300 $4,100 $9,500 $12,767 $17,158 $23,059 $26,732 3.0% $556,500 $212,300 Sales Tax - Direct / On-Site $48,900 $113,400 $304,800 $409,626 $550,503 $739,830 $857,665 3.0% $17,616,100 $6,635,600 Sales Tax - Indirect / Off-Site $14,400 $25,650 $58,500 $78,619 $105,658 $141,995 $164,611 3.0% $3,430,700 $1,310,000 Estimated County Revenues $242,200 $462,350 $1,109,500 $1,491,075 $2,003,880 $2,693,048 $3,928,152 $64,760,500 $24,620,600 County of Humboldt Expenditures
Law and Justice - Incorporated Jurisdiction Estimate $68,600 $144,000 $367,000 $493,217 $662,843 $890,805 $1,032,688 3.0% $21,307,200 $8,060,200 Governance $17,800 $37,300 $95,200 $127,941 $171,942 $231,075 $267,880 3.0% $5,527,000 $2,090,800 Transfers & Contingencies $7,400 $15,500 $39,500 $53,085 $71,341 $95,877 $111,148 3.0% $2,293,300 $867,500 Planning & Building $1,900 $4,100 $10,400 $13,977 $18,784 $25,244 $29,264 3.0% $603,800 $228,400 Aviation & Public Works $1,300 $2,800 $7,100 $9,542 $12,823 $17,234 $19,978 3.0% $412,000 $155,800 Health & Human Services $3,500 $7,500 $19,000 $25,534 $34,316 $46,118 $53,463 3.0% $1,103,100 $417,300 Agriculture & Library $2,100 $4,400 $11,100 $14,917 $20,048 $26,943 $31,234 3.0% $644,800 $244,100 Estimated County Expenditures $102,600 $215,600 $549,300 $738,213 $992,097 $1,333,295 $1,545,655 $31,891,200 $12,064,100 Estimated County Net Fiscal Impact $139,600 $246,750 $560,200 $752,862 $1,011,784 $1,359,752 $2,382,497 $32,869,300 $12,556,500 County Measure O Sales Tax - Transportation $112,500 $247,200 $645,800 $867,901 $1,166,387 $1,567,526 $1,817,192 3.0% $37,413,500 $14,124,500 Revenue / Expenditure Ratio 2.36 2.14 2.02 2.02 2.02 2.02 2.54 2.03 2.04 Notes:
Assumes installation of necessary public infrastructure Values in 2025 dollars
Select years shown for illustration
September 2025 Page 3 of 19
Fortuna Financing District - Fiscal Impact Analysis DRAFT Project Description
Year 5 Year 10 Year 20
Project Component 2031 2036 2046
Residential - Market Rate Rental 50 DU 100 DU 200 DU
Hotel 125 rooms 125 rooms 125 rooms
Industrial / Flex 125,000 SF 250,000 SF 500,000 SF
Commercial / Retail 18,750 SF 37,500 SF 75,000 SF
Annual Escalation Factor 3.0% 1.16 1.34 1.81
Estimated A/V - Residential - Market Rental $250K Per Unit $14,490,926 $33,597,909 $90,305,562 Estimated A/V - Hotel $250K Per Room $36,227,315 $41,997,387 $56,440,976 Estimated A/V - Industrial / Flex $175 PSF $25,359,120 $58,796,342 $158,034,733 Estimated A/V - Commercial / Retail $300 PSF $6,520,917 $15,119,059 $40,637,503 Total Estimated Assessed Value $82,598,278 $149,510,697 $345,418,774 Notes:
Adjusted for value appreciation assuming 2% annual escalation rate (statuatory maximum).
Conservatively assuming no mark-to-market valuations above 2% growth to account for property transfers Select years shown for illustration
Values in 2025 dollars
September 2025 Page 4 of 19
Fortuna Financing District - Fiscal Impact Analysis DRAFT Project Employment and Occupants
Year 5 Year 10 Year 20
Project Component 2031 2036 2046
Residential - Market Rate Rental 50 DU 100 DU 200 DU
Hotel 125 Rooms 125 Rooms 125 Rooms
Industrial / Flex 125,000 SF 250,000 SF 500,000 SF
Commercial / Retail 18,750 SF 37,500 SF 75,000 SF
Estimated # Employees (FTE)
Residential - Market Rate Rental 50 DU / emp 1 2 4
Hotel 1.5 room / emp 83 83 83
Industrial / Flex 1,500 SF / emp 83 167 333
Commercial / Retail 400 SF / emp 47 94 188
Total Estimated # Employees (FTE) 215 346 608
Occupied Dwelling Units 93% 47 DU 93 DU 186 DU
Residents 2.46 per DU 114 229 458
Employees Weighted at 50% 50% 107 173 304
Total Service Population (Residents + Empl.) 222 402 762 Occupied Hotel Rooms 70% 88 rooms 88 rooms 88 rooms
Hotel Guests 1.5 per room 131 131 131
Notes:
Average household size reflects City average household size Select years shown for illustration
Values in 2025 dollars
September 2025 Page 5 of 19
Fortuna Financing District - Fiscal Impact Analysis DRAFT Property Tax
Year 5 Year 10 Year 20
2031 2036 2046
Estimated Assessed Value - Residential $14,490,926 $33,597,909 $90,305,562 Estimated Assessed Value - Non-Residential $68,107,352 $115,912,788 $255,113,212 Total Estimated Assessed Value $82,598,278 $149,510,697 $345,418,774 Total Secured Property Tax General Levy 1.00% $825,983 $1,495,107 $3,454,188 Estimated Unsecured Property Tax as % of Secured Non-Residential Value 10.00% $68,107 $115,913 $255,113 Total Estimated Secured + Unsecured Property Tax $894,090 $1,611,020 $3,709,301 Distributions to Taxing Entities
City of Fortuna 4.48% $40,100 $72,200 $166,200
City Allocation to EIFD 50% (2.24%) ($20,000) ($36,100) ($83,100) Net Property Tax to City 2.24% $20,100 $36,100 $83,100
Humboldt County General 15.45% $138,100 $248,900 $573,100 County Allocation to EIFD 50% (7.73%) ($69,100) ($124,500) ($286,500) Net Property Tax to County 7.73% $69,000 $124,400 $286,600 Notes:
General levy distributions represent tax rate area (TRA) average within boundary Select years shown for illustration
Values in 2025 dollars
Source: Humboldt County Auditor-Controller (2025)
September 2025 Page 6 of 19
Fortuna Financing District - Fiscal Impact Analysis DRAFT Property Tax In-Lieu of Motor Vehicle License Fees (MVLF) Total AV within CITY $1,274,018,000
Current Property Tax In-Lieu of MVLF $1,443,652
Prop Tax In-Lieu of MVLF per $1M of AV $1,133
Year 1 Year 5 Year 10 Year 20
2027 2031 2036 2046
Estimated Project Assessed Value $8,240,000 $82,598,278 $149,510,697 $345,418,774 Incremental Property Tax In-Lieu of MVLF to City $9,300 $93,600 $169,400 $391,400 City Allocation to EIFD ($4,650) ($46,800) ($84,700) ($195,700) Net Incremental Property Tax In-Lieu of MVLF to City $4,650 $46,800 $84,700 $195,700 Total AV within COUNTY $16,582,964,000
Current Property Tax In-Lieu of MVLF $21,610,018
Prop Tax In-Lieu of MVLF per $1M of AV $1,303
Year 1 Year 5 Year 10 Year 20
2027 2031 2036 2046
Estimated Project Assessed Value $8,240,000 $82,598,278 $149,510,697 $345,418,774 Incremental Property Tax In-Lieu of MVLF to County $10,700 $107,600 $194,800 $450,100 County Allocation to EIFD $0 $0 $0 $0
Incremental Property Tax In-Lieu of MVLF to County $10,700 $107,600 $194,800 $450,100 Notes:
Select years shown for illustration
Values in 2025 dollars
Source: Humboldt County Auditor-Controller (2025)
September 2025 Page 7 of 19
Fortuna Financing District - Fiscal Impact Analysis DRAFT Property Transfer Tax
Year 5 Year 10 Year 20
2031 2036 2046
Estimated Assessed Value - For-Sale Residential $0 $0 $0 Estimated Property Turnover Rate 15.0% 15.0% 15.0%
Estimated Value of Property Transferred $0 $0 $0
Estimated Assessed Value - Other Land Uses $82,598,278 $149,510,697 $345,418,774 Estimated Property Turnover Rate 5.0% 5.0% 5.0%
Estimated Value of Property Transferred $4,129,914 $7,475,535 $17,270,939 Estimated Total Value of Property Transferred $4,129,914 $7,475,535 $17,270,939 Total Transfer Tax $1.10 per $1,000 $4,500 $8,200 $19,000 Transfer Tax to City $0.55 per $1,000 $2,300 $4,100 $9,500 Transfer Tax to County $0.55 per $1,000 $2,300 $4,100 $9,500 Notes:
Select years shown for illustration
Values in 2025 dollars
Source: Humboldt County Auditor-Controller (2025)
September 2025 Page 8 of 19
Fortuna Financing District - Fiscal Impact Analysis DRAFT Sales Tax - Direct / On-Site
Year 5 Year 10 Year 20
Project Component 2031 2036 2046
Retail SF 18,750 SF 37,500 SF 75,000 SF
Portion of Industrial Buildings Generating Local Taxable Sales 5.0% 6,250 SF 12,500 SF 25,000 SF Total Sales-Generating SF 25,000 SF 50,000 SF 100,000 SF Estimated Taxable Sales $300 PSF $8,694,556 $20,158,746 $54,183,337 Sales Tax to City (incl. Measure L/S) 1.75% $152,155 $352,778 $948,208 Use Tax as % of 1% Bradley Burns Sales Tax 12.00% $10,433 $24,190 $65,020 Sales and Use Tax to City - Direct $162,600 $377,000 $1,013,200 Measure E/G Sales Tax to City - Direct 0.75% $65,200
Sales Tax to County 0.75% $65,200 $151,200 $406,400
Net of Sales Transfer within County (25%) ($16,300) ($37,800) ($101,600) Sales Tax to County $48,900 $113,400 $304,800
Additional Restricted Sales Tax Allocations:
County Measure O Sales Tax - Transportation 1.00% $86,900 $201,600 $541,800 Notes:
Measure E/G assumed to expire in 2033
County General Fund sales tax for Measure Z and Revenue and Taxation Code Section 7203.1 Taxable sales PSF factor escalated 3% annually
Select years shown for illustration.
Values in 2025 dollars.
September 2025 Page 9 of 19
Fortuna Financing District - Fiscal Impact Analysis DRAFT Sales Tax - Indirect / Off-Site
Year 5 Year 10 Year 20
2031 2036 2046
Estimated # Employees 215 346 608
Estimated Annual Taxable Retail Spending / Empl. Near Work $6,956 $8,063 $10,837 Estimated Employee Taxable Retail Spending Within City $1,492,276 $2,787,955 $6,590,500 Estimated # Occupied Dwelling Units 47 DU 93 DU 186 DU
Estimated Annual Taxable Retail Spending / HH $32,926 $38,171 $51,298 Estimated Resident Taxable Retail Spending $1,531,070 $3,549,859 $9,541,428 Estimated Capture within City 40.0% $612,428 $1,419,944 $3,816,571 Estimated # Occupied Hotel Rooms 88 rooms 88 rooms 88 rooms Estimated Annual Taxable Retail Spending / Room $21,157 $24,526 $32,962 Estimated Resident Taxable Retail Spending $1,851,216 $2,146,066 $2,884,134 Estimated Capture within City 40.0% $740,486 $858,427 $1,153,654 Total Estimated Indirect Taxable Sales $2,845,190 $5,066,325 $11,560,725 Less Estimated Capture Within District Retail (10%) ($284,519) ($506,632) ($1,156,072) Net Indirect Taxable Sales $2,560,671 $4,559,692 $10,404,652 Sales Tax to City (incl. Measure L/S) 1.75% $44,812 $79,795 $182,081 Use Tax as % of 1% Bradley Burns Sales Tax 12.00% $3,073 $5,472 $12,486 Sales and Use Tax to City - Indirect $47,900 $85,300 $194,600 Measure E/G Sales Tax to City - Indirect 0.75% $19,200
Sales Tax to County 0.75% $19,200 $34,200 $78,000
Net of Sales Transfer within County (25%) ($4,800) ($8,550) ($19,500) Sales Tax to County $14,400 $25,650 $58,500
Additional Restricted Sales Tax Allocations:
County Measure O Sales Tax - Transportation 1.00% $25,600 $45,600 $104,000 Notes:
Measure E/G assumed to expire in 2033
County General Fund sales tax for Measure Z and Revenue and Taxation Code Section 7203.1 Employee spending estimates based on "Office Worker Retail Spending Patterns: A Downtown and Suburban Area Study," ICSC.
Household spending based on average houshold income within City.
Hotel guest spending estimated based on American Hotel and Lodging Association (AHLA) data.
Adjusted for inflation assuming 3% annual inflation rate.
Select years shown for illustration.
Values in 2025 dollars.
September 2025 Page 10 of 19
Fortuna Financing District - Fiscal Impact Analysis DRAFT Transient Occupancy Tax ("TOT")
Year 5 Year 10 Year 20
2031 2036 2046
Estimated # Hotel Rooms 125 rooms 125 rooms 125 rooms
Average Daily Room Rate (ADR) $157 $181 $244
Average Occupancy Rate 70% 70% 70%
Annual Hotel Room Receipts $4,998,283 $5,794,379 $7,787,161 TOT to City 10.0% $499,800 $579,400 $778,700
Notes:
Adjusted for inflation assuming 3% annual inflation rate.
Select years shown for illustration.
Values in 2025 dollars.
September 2025 Page 11 of 19
Fortuna Financing District - Fiscal Impact Analysis DRAFT City Service Population
Approximate City Population 12,198
Approximate City Employment Population 3,300
Employee Weighting for Service Population 0.5
Weighted # Employees 1,650
Total City Service Population 13,848
Source: CA Department of Finance, U.S. Census Bureau Center for Economic Studies September 2025 Page 12 of 19
Fortuna Financing District - Fiscal Impact Analysis DRAFT City Multipler Revenue and Expenditure Factors
Year 5 Year 10 Year 20
Budget Category
Adopted City
Budget Allocation Basis
Relevant City
Population Percent Fixed
Per Capita
Factor
Annual
Escalation 2031 2036 2046
General Fund Revenues + Measure E
Property Taxes $650,000 Estimated Separately via Case Study Method ------------------------------------------------- Property Tax in-lieu / VLF $1,590,000 Estimated Separately via Case Study Method ------------------------------------------------- Sales & Use Taxes $2,168,500 Estimated Separately via Case Study Method ------------------------------------------------- Transient Occupancy Tax $720,000 Estimated Separately via Case Study Method ------------------------------------------------- Real Property Transfer Tax $30,000 Estimated Separately via Case Study Method ------------------------------------------------- Franchise Fees $546,000 Service Population 13,848 0% $39.43 3.0% $45.71 $52.99 $71.21 Business License $100,000 Employment Base 3,300 0% $30.30 3.0% $35.13 $40.72 $54.73 Park and Recreation $324,500 Residents 12,198 5% $25.27 3.0% $29.30 $33.96 $45.65 Police Department $568,550 Service Population 13,848 50% $20.53 3.0% $23.80 $27.59 $37.08 Successor Agency $200,000 N/A - Not Development Related --------------------------------------------------------------------- Other Recurring $276,725 Service Population 13,848 0% $19.98 3.0% $23.17 $26.86 $36.09 Non-Recurring - Redevelopment Loans $285,468 N/A - Non-Recurring Revenue ------------------------------------------------------------------------ Non-Recurring - Other Grants/Transfers $705,000 N/A - Non-Recurring Revenue ------------------------------------------------------------------------ Sales Tax - Measure E $1,884,000 Estimated Separately via Case Study Method ------------------------------------------------- Total General Fund Revenues + Measure E $10,048,743
General Fund Expenditures + Measure E
Police $4,414,089 Service Population 13,848 0% $318.75 3.0% $369.52 $428.38 $575.70 Parks and Recreation $1,245,331 Residents 12,198 0% $102.09 3.0% $118.35 $137.20 $184.39 Public Works $419,295 Service Population 13,848 0% $30.28 3.0% $35.10 $40.69 $54.69 Comm Development - Planning $194,597 Service Population 13,848 25% $10.54 3.0% $12.22 $14.16 $19.04 Community Promotion $108,000 Service Population 13,848 25% $5.85 3.0% $6.78 $7.86 $10.56 Library Facilities $17,135 Residents 12,198 0% $1.40 3.0% $1.63 $1.89 $2.54 City Council $40,982 Service Population 13,848 25% $2.22 3.0% $2.57 $2.98 $4.01 City Attorney $50,000 Service Population 13,848 25% $2.71 3.0% $3.14 $3.64 $4.89 City Manager $158,492 Service Population 13,848 25% $8.58 3.0% $9.95 $11.54 $15.50 City Clerk $68,529 Service Population 13,848 25% $3.71 3.0% $4.30 $4.99 $6.70 General Government $278,680 Service Population 13,848 25% $15.09 3.0% $17.50 $20.28 $27.26 Risk Management $689,647 Service Population 13,848 25% $37.35 3.0% $43.30 $50.20 $67.46 Finance $212,293 Service Population 13,848 25% $11.50 3.0% $13.33 $15.45 $20.77 Transfer Out - Development Fund Support $138,217 N/A - Not Related --------------------------------------------------------------------------------------------- Transfer Out - River Lodge Fund Support $263,989 N/A - Not Related --------------------------------------------------------------------------------------------- Transfer Out - Other Funds Support $226,188 Service Population 13,848 25% $12.25 3.0% $14.20 $16.46 $22.13 Capital Improvement Program $20,000 N/A - Non-Recurring Expenditure ------------------------------------------------------------------------ Measure E - Capital Improvements $1,505,000 N/A - Non-Recurring Expenditure ------------------------------------------------------------------------ Measure E - Other / Non-CIP $1,909,640 Service Population 13,848 25% $103.43 3.0% $119.90 $138.99 $186.80 Total General Fund Expenditures + Measure E $11,960,104 Notes:
Adjusted for inflation assuming 3% annual inflation rate.
Select years shown for illustration.
Values in 2025 dollars.
Source: City of Fortuna 2025-2026 Adopted Budget
September 2025 Page 13 of 19
Fortuna Financing District - Fiscal Impact Analysis DRAFT City Multipler Revenues and Expenditures
Year 5 Year 10 Year 20
2031 2036 2046
Estimated # Residents 114 229 458
Estimated # Employees 215 346 608
Total Project Service Population 222 402 762
Budget Category 2031 2036 2046
Multiplier Revenues
Franchise Fees $10,100 $21,300 $54,200
Business License $7,500 $14,100 $33,300
Park and Recreation $3,400 $7,800 $20,900
Police Department $5,300 $11,100 $28,200
Other Recurring $5,100 $10,800 $27,500
Total Multiplier Revenues $31,400 $65,100 $164,100
Multiplier Expenditures
Police $81,900 $172,100 $438,500
Parks and Recreation $13,500 $31,400 $84,400
Public Works $7,800 $16,300 $41,700
Comm Development - Planning $2,700 $5,700 $14,500
Community Promotion $1,500 $3,200 $8,000
Library Facilities $200 $400 $1,200
City Council $600 $1,200 $3,100
City Attorney $700 $1,500 $3,700
City Manager $2,200 $4,600 $11,800
City Clerk $1,000 $2,000 $5,100
General Government $3,900 $8,100 $20,800
Risk Management $9,600 $20,200 $51,400
Finance $3,000 $6,200 $15,800
Transfer Out - Other Funds Support $3,100 $6,600 $16,900 Measure E - Other / Non-CIP $26,600 $55,800 $142,300
Total Multiplier Expenditures $158,300 $335,300 $859,200 Notes:
Major case study revenues not shown include property tax, sales tax, transient occupancy tax Adjusted for inflation assuming 3% annual inflation rate.
Select years shown for illustration.
Values in 2025 dollars.
Source: City of Fortuna 2025-2026 Adopted Budget
September 2025 Page 14 of 19
Fortuna Financing District - Fiscal Impact Analysis DRAFT County Service Population
Approximate County Population 133,817
Approximate County Employment Population 47,432
Employee Weighting for Service Population 0.5
Weighted # Employees 23,716
Total County Service Population 157,533
Source: CA Department of Finance, U.S. Census Bureau Center for Economic Studies September 2025 Page 15 of 19
Fortuna Financing District - Fiscal Impact Analysis DRAFT County Multipler Expenditure Factors
Year 5 Year 10 Year 20
Budget Category
Adopted County
Budget Allocation Basis
Relevant
County
Population
Percent Fixed
Costs
Per Capita
Factor
Annual
Escalation 2031 2036 2046
Primary Expenditures - Net County Cost
Law and Justice - Incorporated Jurisdiction Estimate $56,040,000 Service Population 157,533 25% $266.80 3.0% $309.30 $358.56 $481.87 Law and Justice - Unincorporated Jurisdiction Estimate $37,360,000 N/A - Unincorporated Governance $21,800,000 Service Population 157,533 50% $69.19 3.0% $80.21 $92.99 $124.97 Transfers & Contingencies $18,100,000 Service Population 157,533 75% $28.72 3.0% $33.30 $38.60 $51.88 Planning & Building $11,900,000 Service Population 157,533 90% $7.55 3.0% $8.76 $10.15 $13.64 Aviation & Public Works $8,100,000 Service Population 157,533 90% $5.14 3.0% $5.96 $6.91 $9.29 Health & Human Services $2,900,000 Service Population 157,533 25% $13.81 3.0% $16.01 $18.55 $24.94 Agriculture & Library $1,700,000 Service Population 157,533 25% $8.09 3.0% $9.38 $10.88 $14.62 Total Net County Cost $157,900,000
Notes:
Public Protection services in incorporated jurisdictions estimated at 60% of total County Public Protection services expenditures Planning & Building and Aviation & Public Works assumed to be focused largely in unincorporated areas Adjusted for inflation assuming 3% annual inflation rate.
Select years shown for illustration.
Values in 2025 dollars.
Source: County of Humboldt Proposed 2025-2026 Budget
September 2025 Page 16 of 19
Fortuna Financing District - Fiscal Impact Analysis DRAFT County Multipler Expenditures
Year 5 Year 10 Year 20
2031 2036 2046
Estimated # Residents 114 229 458
Estimated # Employees 215 346 608
Total Project Service Population 222 402 762
Budget Category 2031 2036 2046
Primary Expenditures - Net County Cost
Law and Justice - Incorporated Jurisdiction Estimate $68,600 $144,000 $367,000 Governance $17,800 $37,300 $95,200
Transfers & Contingencies $7,400 $15,500 $39,500
Planning & Building $1,900 $4,100 $10,400
Aviation & Public Works $1,300 $2,800 $7,100
Health & Human Services $3,500 $7,500 $19,000
Agriculture & Library $2,100 $4,400 $11,100
Total Primary Expenditures $102,600 $215,600 $549,300
Notes:
Adjusted for inflation assuming 3% annual inflation rate.
Select years shown for illustration.
Values in 2025 dollars.
Source: County of Humboldt Proposed 2025-2026 Budget
September 2025 Page 17 of 19
Fortuna Financing District - Fiscal Impact Analysis DRAFT IMPLAN Inputs
Construction Inputs
Industry NAICS Category
Approximate Inputs
(Industry Spending)
58 - Construction of new multifamily residential structures $50,000,000 55 - Construction of new commercial structures, including farm structures $53,750,000 51 - Construction of new manufacturing structures $87,500,000 Ongoing Operation Inputs
Industry NAICS Category
Approximate Inputs
(Employment Change)
507 - Hotels and motels, including casino hotels 83 Jobs 412 - Retail - Miscellaneous store retailers 188 Jobs
422 - Warehousing and storage 333 Jobs
476 - Services to buildings 4 Jobs
September 2025 Page 18 of 19
Fortuna Financing District - Fiscal Impact Analysis DRAFT Summary of IMPLAN Economic Benefits
Economic Benefits from Construction (One-Time / Temporary) Employment Labor Income Economic Output
Direct (On-Site) 1,619 $121,240,815 $191,250,000
Indirect 123 $8,857,048 $28,024,742
Induced 368 $22,555,037 $67,738,249
Total Countywide 2,111 $152,652,900 $287,012,991
Estimated City Capture 1,644 $122,811,419 $196,038,150
Economic Benefits from Ongoing Operation (Annual)
Employment Labor Income Economic Output
Direct (On-Site) 608 $28,974,830 $66,329,011
Indirect 87 $6,264,225 $16,177,873
Induced 94 $5,798,339 $17,410,962
Total Countywide 789 $41,037,395 $99,917,847
Estimated City Capture 617 $29,577,959 $68,008,453
Notes
100% of direct benefits estimated to be captured on-site within the City. 5% of indirect and induced benefits estimated to be captured off-site within the City.
Estimated ongoing benefits upon build-out and stabilization.
September 2025 Page 19 of 19