01/12/2018 | News release | Distributed by Public on 01/12/2018 18:19
The Strategic Market Analysis that was delivered by The Concord Group provided findings, conclusions and recommendations as to how the Specific Plan area can be re-envisioned to provide greater tax revenue for the City though a master plan that allows for land uses that the market wants.This study was updated and the findings confirmed subsequently in 2014.
In 2015, the City received approximately $2.2 million is sales tax revenue from the businesses within the proposed Specific Plan area. Currently, property owners are limited in the retail businesses that are allowed under the light manufacturing zoning. By allowing more retail businesses to exist in the proposed Specific Plan area the sales tax revenue will be able to increase. Also important to note regarding retail businesses is that the Strategic Market Analysis performed by The Concord Group found that there is demand in the City for an additional 500,000 square feet of retail space. But the retail space is unlikely to be realized if there are not enough customers during all hours of the day and week to patronize the businesses. For this reason, the Strategic Market Analysis found and recommended that a limited amount of residential land uses are also important to include in new vision for the proposed Specific Plan area.
Also in 2015, the City saw approximately $550,000 in property tax revenue. It is important to note that the new Hyundai building, which only makes up 18-acres of the 155-acre Specific Plan area, generates approximately $200,000 in property tax revenue alone. This demonstrates the large difference in the contribution to the City's tax revenue between properties that have received new investment and properties that have not. The Strategic Market Analysis found that in the future there will be about 350,000 square feet of new office space desired in the City.
The proposed Fountain Valley Crossings Specific Plan generally adds the ability for property owners to lease their property to more types of businesses than they can under the current light manufacturing zoning. The proposed new flexibility in additional businesses that are allowed would increase the value of the property for the property owner. Additionally, retail businesses payer higher rents than light manufacturing businesses do. Therefore property owners would also be able to receive higher rents if they chose to as well.
The City has also considered the costs of providing services if the proposed Fountain Valley Crossings Specific Plan is adopted and properties eventually start seeing new commercial, office and limited residential land uses. These services include police, fire, water, sewer, road maintenance, etc. In this assessment, it was found that the services would not need to be increased significantly and any increases in costs of services for the proposed Specific Plan area would be minimal.