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Analysis of the Fiscal & Economic Impacts of the Proposed Del Webb Edgewood
Development in Antioch, California
Client: Pulte Home Corporation
Pulte Home Corporation commissioned Gruen Gruen + Associates (“GG+A”) to estimate the potential fiscal and economic impacts of the proposed Del Webb Edgewood development in Antioch, California. The proposed active adult development is planned to consist of 568 single-family units on a 204-acre site at Sand Creek Road and Hillcrest Avenue in Antioch. The project includes an 11,000-square-foot recreational facility as well as park land.Based on an analysis of Antioch’s budget, and interviews with department heads, we identified the demand for municipal services the project would induce. The analysis of the budget and interviews provided the information and insight necessary to develop formulas to estimate the costs of municipal services attributable to the project. We drew on the analysis and interviews as well as specific project characteristics to develop formulas to estimate the revenues the project would generate for the General Fund. Revenue sources estimated included property taxes, property transfer tax, sales tax, franchise taxes, penalties and intergovernmental transfers as well as gas taxes.
The applicable service unit, per capita, or per household costs attributable to the proposed development were calculated for police, public works, legislative and administrative, community development, and non-department municipal services. GG+A compared estimated annual revenues and estimated annual costs to estimate the net fiscal impacts of the proposed development. The estimated revenues and costs were projected over the course of the build-out and at 5-, 10-, and 20-year intervals. The net present value of the stream of municipal revenues and costs was also calculated.
GG+A also estimated the economic impacts of the construction and occupancy of the proposed development. GG+A used an input-output model to estimate the direct and indirect employment, income and output or local economic activity effects that will occur as the result of the construction of the project as well as the retail and healthcare expenditures of its future residents. GG+A prepared reports that summarized the methodology used and the findings and conclusions of the fiscal and economic impact analyses.