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Planning Commission <br />Staff Report <br />September 14, 2023 <br />Fiscal Analysis <br />The City's development review policy requires a fiscal analysis of any request for <br />rezoning and change of use. The City's fiscal model provides an estimate of anticipated <br />revenues resulting from the development and costs for City services related to the <br />development over a 20-year period. Staff notes that this analysis does not take into <br />consideration what could be broader positive economic impacts to the City from <br />revitalization of the property and removal of blight from the Urban Renewal Area. <br />Staff has provided both a "High" and "Low" fiscal summary of an assumed development <br />scenario comparing the current zoning to the proposed zoning. The purpose of the two <br />scenarios is to provide a potential range of outcomes depending on the development <br />could build out over time. <br />The fiscal analysis assumes development of the entire 4.39-acres located within the <br />DELO Lofts Final Subdivision Plat based on the concept plan provided by the applicant <br />and assumed development under the current zoning. The "Low" fiscal analysis adjusts <br />several of the base assumptions to 80% of value of the "High" fiscal analysis and <br />assumes a longer absorption period. The base assumptions are summarized below: <br />Current Zonina Scenario <br />- 45 Apartment Units <br />- 20,000 sq. ft. Retail Center <br />Fiscal Model Assumptions <br />Proposed Zoning Scenario <br />- 74 Apartment Units <br />- 35 Townhome Units <br />- 4,000 sq. ft. Retail Center <br />High Scenario <br />Low Scenario <br />Current Zoning Scenario <br />Apartments - Market Value <br />$650,000/unit <br />$520,000/unit <br />Apartments - Construction Value <br />$300,000/unit <br />$240,000/unit <br />Apartments - Household Income <br />$97,500 <br />$78,000 <br />Apartments - Absorption <br />4 years <br />7 years <br />Retail Center — Market Value <br />$250/sq. ft. <br />$200/sq. ft. <br />Retail Center — Construction Value <br />$182/ sq. ft. <br />$146/ sq. ft. <br />Retail Center — Sales/sq. ft. <br />$250 <br />$200 <br />Retail Center — Annual spending/employee <br />$1,200 <br />$960 <br />Retail Center — Absorption <br />7 years <br />10 years <br />Proposed Zoning Scenario <br />Apartments - Market Value <br />$650,000/unit <br />$520,000/unit <br />Apartments - Construction Value <br />$300,000/unit <br />$240,000/unit <br />Apartments - Household Income <br />$97,500 <br />$78,000 <br />Apartments - Absorption <br />4 years <br />7 years <br />Townhomes - Market Value <br />$800,000/unit <br />$640,000/unit <br />Townhomes - Construction Value <br />$450,000/unit <br />$360,000/unit <br />Townhomes - Household Income <br />$120,000 <br />$96,000 <br />Townhomes - Absorption <br />4 years <br />7 years <br />Retail Center — Market Value <br />$250/sq. ft. <br />$200/sq. ft. <br />Retail Center — Construction Value <br />$182/ sq. ft. <br />$146/ sq. ft. <br />Retail Center — Sales/ sq. ft. <br />$250 <br />$200 <br />Retail Center — Annual spending/employee <br />$1,200 <br />$960 <br />Retail Center — Absorption <br />4 years <br />7years <br />9 <br />