New York | Dallas | Los Angeles | Raleigh | Washington DC| Atlanta
MEMORANDUM
To:
From:
Date:
Re:
Susan Cola, Esq. and Roxanne Tanemori, City of Santa Monica HR&A Advisors, Inc.
May 2, 2022
Preliminary Economic and Fiscal Impact Analysis of the Ocean Ave Project
INTRODUCTION
HR&A Advisors, Inc. (“HR&A”) has prepared estimates of the general economic and fiscal impacts in the City of Santa Monica (“City”) economy that would result from the construction and stabilized annual operation of the Ocean Avenue Project (the “Project”). This memorandum comments on economic and fiscal impact analyses prepared for the Project Applicant that analyzed the Project’s hotel use only. It also provides a comparison between the Project’s economic and fiscal impacts and a Tier II development alternative that would not include a hotel, and would not be subject to a Development Agreement. For both the Project and the Tier II Alternative, the results are reported net of the economic and fiscal impacts of the uses currently located on the Project site.
Proposed Ocean Avenue Project
The Project consists of the full redevelopment of seven assembled parcels totaling about 2.4 acres located at 101and 129 Santa Monica Boulevard, and 1327, 1333 and 1337 Ocean Avenue (the “Property”). It includes the design, construction and subsequent operation of a 120-room luxury boutique hotel, 100 apartment units, approximately 36,000 square feet of mixed-use retail space, 35,000 square feet of museum and event/cultural center space (including rehabilitation of two designated City landmarks) (the “Cultural Use Campus”), an outdoor public garden and a public observation deck. Of the 100 residential units, 16 units will be rent-controlled and an additional 20 are proposed to be deed-restricted for the life of the Project at below-market rents. The entire Project is projected to be completed in 2026 in a single phase.
Tier II Alternative
City staff provided HR&A with specifications for land uses, physical parameters, and other assumptions for a mixed-use alternative scenario that aligns with as-of-right development under Tier II zoning regulations, as presented in the Project’s Draft Environmental Impact Report as Alternative 2 (the “Tier II Alternative”).
The Tier II Alternative includes 150 residential units and 69,837 of restaurant and retail uses. Overall, the Tier II Alternative features 50 more residential units than the Project, but will not include the hotel, cultural use campus and has substantially less public open space.
ECONOMIC IMPACT METHODOLOGY AND APPROACH
HR&A estimated the net economic impacts of the Project and the Tier II Alternative using the IMPLAN inputoutput modeling system tailored to the boundaries of the City, and using 2019 economic data to reflect preCOVID-19 pandemic conditions, while presenting dollar-denominated results in 2022 dollars. IMPLAN is a widely accepted model that HR&A and many others, including many public agencies, to estimate the economic consequences of new investment in, or other changes to, a local or regional economy. It explicitly accounts for impact “leakage,” or the fact that not all economic impacts are necessarily experienced inside HR&A Advisors, Inc. Ocean Ave Project Economic & Fiscal Impacts | 2 the geographic area under study. The IMPLAN model can be used to generate estimates of direct, indirect, and induced employment (measured in terms of headcount jobs, not full-time equivalents), compensation (i.e., wages, benefits and sole-proprietor income) and total economic output (i.e., a summary measure of all sales and spending expressed in producer prices), for both the construction phase of a project, and annually, once it has been completed and occupied.
Project impacts were derived separately for construction-related economic impacts and annual operationsrelated economic impacts to differentiate between one-time and ongoing impacts to the City economy. The three economic impact categories can be summarized as follows:
• Direct impacts, which are the number of jobs and other measure of impact involved in the on-site construction and annual operation of the completed Project, or continued operation of the existing uses, as applicable.
• Indirect impacts, which are the jobs and other economic impacts resulting from construction contractor purchases and construction-related professional services, as well as completed Project commercial use purchases of goods and services from other businesses.
• Induced impacts, which are the economic impacts resulting from the household expenditures by new Project housing residents and by the Project’s direct and indirect construction-related and operationsrelated employees or continued operation of the existing uses, as applicable. The sum of indirect and induced effects is often referred to as the “multiplier effect” on the direct impacts.
For the analysis, the Project’s geographic area was defined by aggregating IMPLAN model economic data for the City’s five ZIP Codes – 90401, 90402, 90403, 90404 and 90405.
Comparisons to CBRE Economic Impact Analysis
CBRE also conducted an Economic Impact Analysis for the Applicant. The following highlights the differences between CBRE’s modeling approach and the approach used by HR&A:
• The CBRE analysis used the Reginal Input-Output Modeling System (RIMS II), which is a different impact modeling system than IMPLAN, which was used by HR&A. • The CBRE approach used RIMS II impact factors and certain multiplier effect assumptions developed in consultation with the Los Angeles County Economic Development Corporation to reflect economic impacts within the entire Los Angeles County economy, whereas HR&A’s approach using IMPLAN is specific to the City’s economy.
• The CBRE analysis only included economic impacts for the Project’s hotel, while HR&A modeled all Project uses including the cultural campus, all retail and restaurant uses, market rate and affordable apartments, and the hotel.
• HR&A’s analysis includes a comparison of impacts of the Proposed Project and the Tier II Alternative project, both netting out impacts associated with existing uses. The CBRE analysis did not net out impacts from existing uses.
• CBRE’s dollar-denominated results were reported in constant 2021 dollars, whereas HR&A’s results are reported in constant 2022 dollars.
• HR&A’s analysis relied on annual operations projections (occupancy rate, average room rate, food and beverage revenues) in the CBRE report for the hotel, but used a combination of Applicant data HR&A Advisors, Inc. Ocean Ave Project Economic & Fiscal Impacts | 3 and HR&A assumptions for the other Project uses, and HR&A estimates and assumptions for the Tier II Alternative.
• HR&A’s analysis includes updated construction figures for the development budget which were provided by the Applicant.
The following table represents CBRE’s estimates for Total Annual Economic Impact for only the Project Hotel.
Table 1: CBRE Economic Impact Model Estimates
HR&A SUMMARY OF ECONOMIC IMPACTS IN THE CITY OF SANTA MONICA ECONOMY In addition, HR&A evaluated the economic impacts of the Project and other scenarios for both one-time construction-related impacts and for ongoing operations-related impacts. The analysis below shows that the impacts are largely direct impacts with a very small multiplier effect within the city geography.
To derive the one-time construction-related economic impacts of the Project, HR&A used detailed hard construction cost data in 2021 dollars for the Gehry Partners design as provided by the Applicant to measure the economic impact that Project construction will have on the City economy. The construction hard costs were categorized into two IMPLAN industry sectors to distinguish between the construction of residential and commercial uses. Due to data limitations and other economic trend uncertainties associated with the COVID19 pandemic, HR&A elected to use 2019 IMPLAN data to evaluate the Project’s economic impacts in the City. Using this method, the following construction-related impacts were derived (more detailed modeling results are available from HR&A upon request):
• Approximately 2,217 total jobs (i.e., direct on-site + “multiplier effect”), of which 2,211 full-time and part-time construction jobs will be located on site.
• Approximately $157.5 million in compensation paid to workers directly and indirectly associated with construction, of which $157.0 million will be paid to on-site workers. • Approximately $258.3 million in total economic output, including $257.1 million associated with Project construction, measured in producer prices.
To derive the annual operations-related economic impacts of the Project, HR&A conducted a separate analysis for each use: hotel, cultural use campus, residential, restaurant and retail. Using this approach, the following operations-related economic impacts were derived:
Proposed Ocean Avenue Project Hotel
Hotel Guests
Occupied Hotel Rooms 35,040
Double Occupancy Factor 1.4
Total Hotel Visitor Days 49,056
Total Visitor Spending $103,395,511
Multiplier 1.3
TOTAL ECONOMIC IMPACT Direct and Indirect $134,414,164
NUMBER OF JOBS SUPPORTED by Direct Spending 999
Note: Numbers have been rounded.
CBRE Total Annual Economic Impact (Based upon a stabilized year of operation, 2021 dollars) HR&A Advisors, Inc. Ocean Ave Project Economic & Fiscal Impacts | 4 • Approximately 768 total jobs (i.e., direct on-site + “multiplier effect”), of which 764 full-time and parttime construction jobs will be located on site. • Approximately $31.9 million in compensation paid to workers directly and indirectly associated with construction, of which $31.6 million will be paid to on-site workers. • Approximately $72.8 million in total economic output, including $71.9 million associated with Project construction, measured in producer prices.
HR&A also performed a hotel-specific economic impact analysis to compare to the CBRE results, which is shown in the table below:
Table 2: HR&A Hotel-Specific Economic Impact Model Estimates HR&A’s estimates for hotel operational jobs and total economic output are much lower than CBRE’s estimates due to the use of different multipliers through IMPLAN and use of the smaller Santa Monica geography.
Tier II Alternative Impacts
Similar approaches were used to estimate the economic impacts for the Tier II Alternative, but using HR&A estimates for construction costs and operational costs for completed land use elements. • Approximately 844 total jobs (i.e., direct on-site + “multiplier effect”), of which 842 full-time and parttime construction jobs will be located on site. The Tier II Alternative accounts for about 38 percent of the total construction-related jobs resulting from the Project. • Approximately $61.2 million in compensation paid to workers directly and indirectly associated with construction, of which $61 million will be paid to on-site workers. • Approximately $97.6 million in total economic output, including $97.2 million associated with project construction, measured in producer prices. The Tier II Alternative accounts for about 38 percent of the total construction-related economic output resulting from the Project.
Tier II Alternative Operations-related impacts
• Approximately 393 total jobs (i.e., direct on-site + “multiplier effect”), of which 390 full-time and parttime construction jobs will be located on site. The Tier II Alternative accounts for about 39 percent of the total annual operations jobs resulting from the Project. • Approximately $17.8 million in compensation paid to workers directly and indirectly associated with construction, of which $17.6 million will be paid to on-site workers.
Proposed Ocean Avenue Project Hotel
Construction
All Jobs 693
All Employee Compensation $48,832,425
Economic Output $85,882,507
Ongoing Operations
All Jobs 509
All Employee Compensation $21,317,429
Economic Output $49,124,362
HR&A Project Hotel Specific Economic Impact Analysis
HR&A Advisors, Inc. Ocean Ave Project Economic & Fiscal Impacts | 5 • Approximately $37.4 million in total economic output, including $36.8 million associated with Project construction, measured in producer prices. The Tier II Alternative accounts for about 40 percent of the total annual operations economic output resulting from the Project.
Existing Uses Impacts
Finally, to understand the net economic impacts compared to the existing uses on the Project site, the following operations-related impacts for those uses were estimated:
• Approximately 153 total jobs (i.e., direct on-site + “multiplier effect”), of which 153 full-time and parttime construction jobs will be located on site. • Approximately $8.1 million in compensation paid to workers directly and indirectly associated with construction, of which $8 million will be paid to on-site workers. • Approximately $13.0 million in total economic output, including $12.8 million associated with Project construction, measured in producer prices.
Tables 3 and 4 show the net economic impacts of annual operations for the Project and Tier II Alternative after accounting for the impacts of the existing uses at the Project site. Deducting the operational impacts of the existing uses reduces the Project’s total employment impacts by about 20 percent and the Tier II Alternative’s total employment impacts by about 39 percent . Deducting the operational impacts of the existing uses reduces the Project’s total economic output impacts by about 18 percent and about 35 percent for the Tier II Alternative.
Table 3. Comparing the total economic impacts of the Project to Existing Uses Table 4. Comparing the total economic impacts of the Tier II Alternative to Existing Uses
PROPOSED EXISTING NET IMPACT
Construction
Jobs 2,217 0 2,217
Employee Compensation $157,505,312 0 $157,505,312
Economic Output $258,300,879 0 $258,300,879
Ongoing Operations
Jobs 768 153 615
Employee Compensation $31,930,574 $8,102,231 $23,828,343 Economic Output $72,848,156 $13,001,266 $59,846,890
TIER II ALTERNATIVE EXISTING NET IMPACT
Construction
Jobs 844 0 844
Employee Compensation $61,203,067 0 $61,203,067
Economic Output $97,642,424 0 $97,642,424
Ongoing Operations
Jobs 393 153 240
Employee Compensation $17,845,510 $8,102,231 $9,743,279 Economic Output $37,458,302 $13,001,266 $24,457,036
HR&A Advisors, Inc. Ocean Ave Project Economic & Fiscal Impacts | 6 Table 5 compares the net economic impacts of the Project and the Tier II Alternative after accounting for the existing uses. Overall, the Project would generate 62 percent more total construction-related jobs and economic output than the Tier II Alternative, and 61 percent more total annual operations jobs and 59 percent more total economic output in the City’s economy.
Table 5. Comparing the net economic impacts of the Project to the Tier II Alternative
FISCAL IMPACTS TO THE CITY OF SANTA MONICA
This section presents HR&A’s estimates of the net fiscal impact that will be generated by the development and stabilized annual operation of the Project. The analysis also provides a comparison between the net fiscal impacts of the stabilized Project, the Tier II Alternative and net of the fiscal impacts of the existing uses.
The fiscal estimates are based on many of the same assumptions used for the economic impact analysis, with additional hotel operating assumptions provided by CBRE; public and proprietary third-party data to estimate certain real estate metrics; the City’s municipal code; City budget data; and typical fiscal impact revenue and tax formula calculation approaches applicable to the characteristics of the Project, the Tier II Alternative and the existing uses. More detailed modeling results are available from HR&A upon request.
Comparisons to CBRE Fiscal Impact Analysis
CBRE also conducted a Fiscal Impact Analysis for the Applicant. The following highlights the differences between CBRE’s approach and the HR&A approach:
• CBRE estimated gross fiscal impacts for the hotel and residential uses only. HR&A estimated fiscal for all Project uses including hotel, residential, office, retail/dining and parking to generate fiscal revenues compared to the CBRE model.
• CBRE did not net out the fiscal impacts of the existing uses or compare the fiscal impacts between the Project and the Tier II Alternative. HR&A’s analysis includes both sensitivities. • CBRE did not estimates city services costs related to the new development. HR&A’s analysis includes estimates of the costs to the City and nets out the tax revenues generated from the development with city services costs.
• CBRE’s analysis was presented in 2021 dollars; HR&A’s analysis is presented in 2022 dollars.
PROPOSED NET TIER II ALTERNATIVE NET NET IMPACT
Construction
Jobs 2,217 844 1,373
Employee Compensation $157,505,312 $61,203,067 $96,302,245 Economic Output $258,300,879 $97,642,424 $160,658,455
Ongoing Operations
Jobs 615 240 375
Employee Compensation $23,828,343 $9,743,279 $14,085,064 Economic Output $59,846,890 $24,457,036 $35,389,854
HR&A Advisors, Inc. Ocean Ave Project Economic & Fiscal Impacts | 7 • HR&A relied on hotel annual operations projections (occupancy, ADR, food and beverage revenues) and stabilized year of operation in the CBRE report for the Proposed Project but used HR&A models and assumptions for the Tier II Alternative project.
• HR&A’s analysis includes updated construction cost data for the Project which were provided by the Applicant.
The following table summarizes CBRE’s Fiscal Impact Analysis.
Table 6: CBRE Fiscal Impact Analysis Estimates
SUMMARY OF HR&A FISCAL IMPACT ANALYSIS
Project Fiscal Impacts
For the Project, HR&A estimated $6.2M (2022 dollars) in total gross revenues to the City’s General Fund which includes one-time construction revenues and impacts once the Project achieves stabilized operation in 2025. After accounting for the cost to provide City services to the Project, the net fiscal impact to the City’s General Fund in the first stabilized year of the Project would be approximately $3.44 million. The Hotel is the major source of tax revenue which is shown in the breakdown of costs and services in the table below:
Rooms Revenue $27,051,000
TOT Rate 14%
TOT Generated, Rounded $3,787,000
Direct Sales Revenue $61,884,000
Tax Rate 1.75%
Sales Tax Generated, Rounded $1,082,970
Real Estate Tax $3,715,000
(All components of the mixed-use Project) 14%
Property Taxes Generated to the City $520,100
Hotel Gross Revenue $41,875,000
Business Tax Rate 1.25%
Business Tax Rate Generated to the City, Rounded $52,000 Stabilized Utility Expense $708,000
Utility Tax (1%), Rounded $70,800
Stabilized Parking Revenue $1,086,000
Parking Tax (10%) $108,600
Total Measurable Tax Revenues to City of Santa
Monica Local Agencies, Rounded $ 5,621,000
Operational Phase Measurable Tax Revenues (Stabilized Year of Operation, 2021 Dollars) Proposed Ocean Avenue Project
HR&A Advisors, Inc. Ocean Ave Project Economic & Fiscal Impacts | 8 Table 7. Fiscal Impacts by Tax Revenue in Stabilized Year – Project Compared to CBRE’s Fiscal Impact model, the tax revenue generated from the Hotel and Residential uses is slightly less in HR&A’s model likely due to differences in assumptions around revenues and rents.
Tier II Alternative
For the Tier II Alternative, HR&A estimated $1.9M (2022 dollars) in total gross revenues to the City’s General Fund which includes one-time construction revenues and impacts once the Tier II Alternative achieves stabilized operation. After accounting for the cost to provide City services to the Tier II Alternative, the net fiscal impact to the City’s General Fund in the first stabilized year would be approximately $242K which is significantly less than the Project due primarily to the absence of the hotel tax revenues and the larger number of residential units and their higher City service costs. The table below shows the breakdown of revenues and costs by use:
Table 8. Fiscal Impacts by Tax Revenue in Stabilized Year – Tier II Alternative Existing Uses
For the Existing Uses, HR&A estimated $309K (2022 dollars) in total annual revenues to the City’s General Fund. After accounting for the cost to provide City services for the existing uses, the net fiscal impact to the City’s General Fund would be approximately $49.5K. The table below shows the breakdown of revenues and costs by use:
Revenue by Use Breakdown Stabilized Year (2025) Total Impact Tax Revenue Apartments Hotel Office Retail/Restaurant Tax Revenue Property Tax $293,142 $323,608 $66,756 $79,649 $763,156 Sales and Use Tax $9,603 $109,602 $6,276 $304,949 $430,430 TOT Tax $0 $3,789,717 $0 $0 $3,789,717
Business License Tax $12,897 $48,366 $0 $52,328 $113,591 Utility Users Tax $47,071 $13,174 $7,794 $7,928 $75,967 Parking Facilty Tax $0 $69,027 $0 $0 $69,027
Other Taxes $5,773 $6,723 $1,447 $613 $14,555
Total Revenue to General Fund $368,485 $4,360,217 $82,274 $445,468 $5,256,444 Less: City Services Costs ($696,802) ($811,570) ($174,610) ($74,004) ($1,756,987) Less: Net Existing Uses ($49,500)
Net Fiscal Impact $3,449,957
Revenue by Use Breakdown Stabilized Year (2025) Total Gross Impact Tax Revenue Apartments Office Retail/Restaurant Tax Revenue Property Tax $439,713 $17,488 $154,043 $611,244
Sales and Use Tax $14,405 $1,644 $613,894 $629,943
TOT Tax $0 $0 $0 $0
Business License Tax $19,345 $4,359 $101,203 $124,908
Utility Users Tax $70,606 $2,042 $15,333 $87,981
Parking Facility Tax $0 $0 $61,761 $61,761
Other Taxes $8,659 $379 $1,186 $10,223
Total Revenue to General Fund $552,727 $25,913 $947,420 $1,526,060 Less: City Services Costs ($1,045,203) ($45,743) ($143,125) ($1,234,071) Less: Net Existing Uses ($49,500)
Net Fiscal Impact $242,489
HR&A Advisors, Inc. Ocean Ave Project Economic & Fiscal Impacts | 9 Table 9. Fiscal Impacts by Tax Revenue – Existing Uses
HR&A FISCAL IMPACT ANALYSIS METHODOLOGY
The Fiscal impact Analysis includes both one time construction revenues and ongoing operations of the “Project.”
One-Time Construction-Related Revenues
One-time revenues refer to a combination of taxes that are incurred during the construction period for the Project only. This analysis assumes the total Project site is properly registered by the construction contractors with the California Department of Tax and Fee Administration so that the City is credited with local sales tax on applicable construction materials purchases. Not included in these revenues are any planning fees, construction permits, developer fees or mitigation fee charges, because these charges are generally set at rates to directly offset City costs, and therefore do not represent new revenues that can be used to fund other City General Fund expenditures.
Recurring Annual Revenues
The City will receive revenues an annual basis after the Project is completed and stabilized. Estimated recurring revenues are based on current City tax rates and tax formulas. HR&A included the following taxes in the fiscal impact analysis, all of which are recorded in the City’s General Fund only. Certain other tax revenues that are produced for City special funds (e.g., voter-approved indebtedness and special assessments) such as the Santa Monica-Malibu Unified School District and Santa Monica College are not reflected in this analysis.
• Property Tax. The property tax applicable to the Project site includes a one percent levy on the assessed value of land and buildings, which is distributed among different local taxing entities. The City share of assessed value is 13.9%. As of the Project’s opening year, the total assessed value of the Project is assumed to be equal to its estimated net sale value at that point in time. This valuation is derived by estimating the net operating income (“NOI”) for the applicable Project incomeproducing components (i.e., restaurant/retail, cultural facility and hotel). The NOI is then translated into an estimated sale value using income capitalization rates applicable to each land use. • Property Tax In Lieu of Motor Vehicle License Fees. This additional category of property tax revenue is provided by the State to local governments following the elimination of local receipt of Motor Vehicle License Fees in 2005. The amount is set by the State based on the total assessed value of land and buildings in a given municipality each year. The City share of assessed value is 0.031 Revenue by Use Breakdown Stabilized Year (2025) Total Gross Impact Tax Revenue Apartments Office Retail/Restaurant Tax Revenue Property Tax $55,697 $39,076 $27,329 $122,102
Sales and Use Tax $1,825 $3,674 $96,068 $101,566
TOT Tax $0 $0 $0 $0
Business License Tax $2,450 $9,741 $17,955 $30,146
Utility Users Tax $8,943 $4,562 $2,720 $16,226
Parking Facility Tax $0 $0 $37,299 $37,299
Other Taxes $1,097 $847 $210 $2,154
Total Revenue to General Fund $70,012 $57,900 $181,581 $309,493 Less: City Services Costs ($132,392) ($102,209) ($25,392) ($259,993) Net Fiscal Impact $49,500
HR&A Advisors, Inc. Ocean Ave Project Economic & Fiscal Impacts | 10 percent. This revenue applies to the Project, the Tier II Alternative and the existing uses, but based on very different levels of assessed value.
• Sales Tax. The City’s General Fund receives a 1.25 percent tax on applicable retail and certain other sales within the City, including the City General Fund share from Measure Y. HR&A’s analysis includes sales tax generated from purchases at the relevant uses in the Project, the Tier II Alternative and existing uses, as well as the sales tax generated by household spending from the residents of the apartment and the affordable housing in the Project and Tier II Alternative. The sales tax revenue projection for Project’s retail and dining uses is based on sales assumptions in the Applicant’s financial feasibility model. Sales tax from new household spending is derived from a national consumer expenditure survey associated with categories of household income, and Project and Tier II Alternative household income categories derived from average market rate apartment rents and affordable rents, and further adjusted by HR&A for the estimated share of applicable sales that would occur within the City, and for the estimated sales that would take place in the Project’s retail and dining uses.
• Hotel Transient Occupancy Tax. The City levies a 14 percent tax on the total amount paid for rental of hotel rooms. The Transient Occupancy Tax was applied to all Project hotel room revenues for the Project hotel only after completion of hotel construction. • Business License Tax. A Business License Tax is imposed on all businesses operating within the City limits. Rates are dependent on the business’s gross receipts but vary by business type. The Business License Tax was applied to the Project’s hotel, residential leasing, retail, dining and office sites, along with estimating the business license tax from construction materials, as well as applicable uses in the Tier II Alternative and the existing uses.
• Utility Users’ Tax. Santa Monica levies a 10 percent Utility Users’ Tax on consumers of gas, water, and electricity. For all land uses in the Project, the Tier II Alternative and existing uses, revenues from these taxes are estimated based on the gross above ground square footage for each site and using historical city utility tax revenue data.
• Parking Facility Tax. The City levies a 10 percent tax on all parking fees charged by parking facility operators. Revenues for the Project’s subterranean parking facility are estimated based on the annual revenue per space as provided by the Applicant. Parking Facility Tax assumptions were developed by HR&A for the Tier II Alternative and the existing uses.
ANNUAL CITY SERVICE COSTS
The net fiscal impact of a proposed development project is calculated by subtracting any recurring costs to provide public services to the project from the annual tax and other revenues it generates. The net fiscal result from new development depends on whether “marginal” or “average” public service costs are used in the calculation.
For the net fiscal impact analysis of the Project, the Tier II Alternative and the existing uses, it is assumed that the Santa Monica General Fund departments with variable costs that could be impacted by each scenario include the Police, Fire, Community Services, Community Development, Public Works, Department of Transportation, City Clerk, Library, Human Resources and Finance departments and also Non-departmental.
The annual General Fund operating cost of these departments can be expressed as a cost per “resident equivalent” for the City. This approach translates Project jobs to “resident equivalents” based on the time they work in the City, plus the number of residents from the Project’s new dwelling units using average household sizes. The annual cost of operating the relevant City departments is based on the FY 2021-23 Adopted Biennial Budget and related budget updates, and factored for the daytime population of the City, including residents who live and work in the City, in-commuting workers and hotel guests.