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HomeMy WebLinkAboutEconomic Impact Study• • 4649 PONCE GE d—e=.C3ni BLVD.. SUETY 4.04 CORAL. L2ABL5s. FL . 3 1 46 2 7 1 w TEL: 305-562-72 72 FAX; . 05-66Z-426E [.e Er�T:FS�SJ Fi�ELF� A.E,E,E,sNi=:NTS ROADS END VILLAGE ECONOMIC IMPACT STUD Y Submitted to: City of Miami Prepared for: ROADS END VILLAGE, LLLP. Prepared by: ALBERNI, CABALLERO & ALBERNI, P.A. 4649 Ponce De Leon Blvd. Suite 404 Coral Gables, FL 33146-2118 305.662.7272 • • • Page 2 Project Overview ROADS END VILLAGE (the "Project") will be an intimate neighborhood of twenty-six (26) charming single family Urban Villas and one of the areas first projects to address the City of Miami's vision for a new urban streetscape. Located at 928 S.W. 10th Street, the Project is centrally located just minutes from Downtown Miami, Brickell, Key Biscayne and Coral Gables. The project's unique Caribbean design is brought to life by one of Miami's most innovative architectural firms, COLLADO & MOLINA. Capturing the distinct Caribbean flavor through its use of rich colors, tin roofs, varied verandas and shutters, the project's designers have taken a novel "urban" approach to a traditional theme. The villas three-story floor plans range in size from 1,500 to 2,500 square feet and prices begin at over 400 thousand dollars. Introduction This document is an economic and tax benefits analysis of the development and operation of a twenty-six (26) single family Urban Villa community. This analysis covers the entire Project and estimates the economic and tax benefits for both its developmental and operational stages. The Project will result in important economic benefits to the City of Miami, including but not limited to, new employment and increased revenue to the public sector. Employment includes direct employment attributable to the Project's construction for approximately seventy (70) employees and an additional two (2) employees once the Project is completed to manage the maintenance and operations of the community. • • • Page 3 Wages New employment wages were computed from budgeted data directly related to the developmental and operational phases of the Project. Total direct and indirect impacts expected from wages associated with the new development are approximately: Non -Recurring: $10,971,230 Annual: $ 93,960 Tax Revenue Public Sector revenues associated with the Project include taxes and other ancillary revenue produced directly by the development. Annual tax revenue expected to be produced is approximately $140,000. Total Economic Impact (Output) This estimate analysis the economic impact of developmental costs and continuing operational expenses. Total economic impact anticipated to be generated as a result of this Project's development is approximately: Non -Recurring: $11,651,040 Annual: $ 246,551 Summary The following summarizes the economic impact of the ROADS END VILLAGE Project: Economic Impact (Output) Wages Taxes Non -Recurring $11,651,040 10,971,230 Annual 246,551 93,960 139.526 $22,622,270 $ 480,037 • • • Page 4 Economic Impact of Construction The site preparation and construction costs, including soft costs are estimated to be $6,200,000. This construction activity is anticipated to create approximately seventy (70) new full time equivalent jobs and employ up to a maximum of 98 workers during peak periods. These employees will earn approximately $5,800,000 dollars in direct wages. Non -recurring (Development) OUTPUT WAGES TAXES EMPLOYMENT Direct $ 6,200,000 5,838,245 70 Indirect 4,451,040 5,132,985 $ 11,651,040 10,971,230 70 Annual Direct $ 131,200 50,000 139,526 2 Indirect 115,351 43,960 $ 246,551 93,960 139,526 2 Impact on Local Tax Revenues An important benefit attributable to the development of the Project is taxes. Several type of tax revenue will be generated from this Project, including ad valorem taxes. The projected annual real property taxes are approximately $140,000. Total ad valorem taxes assessed by Miami -Dade County are allocated based on mileage rates to certain governmental entities, including but not limited to City operating, School operating, and County operating taxes. • • • Page S Impact Fees A major factor in determining a Project's economic impact on a region is the amount of impact and development fees required. For the purpose of this analysis, these fees are made a part of the total development costs (Output). Impact fees are approximately $235,000 and other fees total approximately $145,000. Summary Direct -Developmental: -Operational: Total Direct: Indirect -Developmental: -Operational: Total Indirect: Output Wages Employ. Taxes 6,200,000 5,838,245 70 131,200 50,000 2 139,526 6,331,200 5,888,245 72 139,526 $ 5,451,040 5,132,985 115,351 43,960 $ 5,566,391 5,176,945 TOTAL BENEFITS: $ Total Developmental: Total Operational: 11,897,591 $ 11,651,040 246.551 11,065,190 72 139,526 10,971,230 70 93,960 2 139,526 TOTAL BENEFITS: $ 11,897,591 11,065,190 72 139,526