The Development of Magnolia at the park will have a direct and Long-Term fiscal benefit to the city of santa ana
RSG, Inc. was retained by The Concord Group on behalf of the Development team to perform a fiscal and economic impact analysis for the development Magnolia at the Park. In brief, RSG anticipates the following fiscal outcomes over a 25-year forecast period:
Approximately $33.5 million in additional City General Fund revenue, including construction period revenues, recurring site-specific tax, and other Project revenues.
Approximately $415,200 in property tax revenue per year, as opposed to the current $32,300. The site development would generate approximately $16.5 million after 25 years.
Over the same 25-year period, the City General Fund expenditures associated with the Project total $10.0 million.
As a result, the net new General Fund revenue is projected to be approximately $23.5 million from the acquisition and development of the Project.
- Case studies have proven that major developments will not only revitalize communities but also attract business to move closer to diverse urban centers that offer access to technology and knowledgeable workers -- employers are following the employees, not the other way around.
- Thousands of temporary constructions jobs will be created by way of the development.
- Continuation of a cohesive zoning along Main Street, and creates proper transition to adjacent single family residences.
- Magnolia will be creating green space that does not currently exist by converting a parcel that is 95% building, concrete and asphalt into a thriving community which has over 30% open space.
14X the yearly net revenue over existing use to the City’s General Fund.
Magnolia will increase the City’s quality housing stock.
Creation of a new gateway into Santa Ana.
- Achieves many of the goals of the City's Strategic Plan.
- Decrease in use of fossil fuels; due to proximity of housing to employment center.
- Greatest revenue to City via this type of development.
- Site is situated on public transit corridor ideal for reducing use of automobiles
Net benefit to the City's General Fund
Magnolia at the Park will Pay $5,183,042 in Development Fees that will go directly to the City's General Fund, providing funding for:
- Repaved Roadways
- School Improvements
- City-Wide Park Improvements
- Hiring Of More Police Officers
- Local Commercial And Retail Businesses Will Thrive With Influx of New Consumers
- and more...
Deficit of $17 Million, and Climbing
Currently Santa Ana Has A $17 Million Annual Budget Deficit, Projected To Climb To $32 Million in 2019
The Development of the Magnolia Project will bring over $1.2 Million in annual revenue to the City’s General Fund
"Santa Ana is facing a $17 million budget shortfall going into the next fiscal year, prompting warnings from city officials that services could be scaled back.
That deficit is expected to balloon to $40 million by the start of the 2022-23 fiscal year, according to a presentation finance officials gave to the City Council at a special meeting Feb. 5...
“So clearly, that’s not sustainable to have expenditures exceed your revenues,” said City Manager Raul Godinez. “The budget is limited and becoming more limited as we go on. We really need to tighten our belts”
Godinez said city leaders need to focus on identifying the city’s “core services.” A big chunk of the city’s budget goes toward public safety.
Increased Tax Revenue
Magnolia will provide significantly more fee and tax revenue to the City of Santa Ana as compared to the revenue from the existing use:
Approximately 20% of the total property tax paid on the property goes to the City of Santa Ana, meaning:
The annual property tax revenue from the existing building is $126,062 vs $447,481 from Magnolia.