[bouldercouncilhotline] Hotline: RE: Economic impact analysis

[cmosupport at bouldercolorado.gov]

Sender: Meschuk, Chris

Dear Councilmember Brockett,

The draft Economic Impact Analysis that is included in tonight's study session packet provides a total economic benefit to the local economy, as you described below. You are correct, that there is not a way to tie the economic impact analysis to the impact fee studies.

Your request for analysis on a square foot basis of fees and taxes paid by development would be a separate analysis, and this data is not contained in an economic impact analysis. To calculate such a revenue benefit is something such as a fiscal impact model, which takes into account all city revenue sources and all expenses, both operating and capital. This is a significant work effort, and could not be completed by September 20.

It would be very important to clarify what council would hope to derive from a study.  To isolate a per sq. ft. revenue from development and compare it to the impact fee study is still a bit of an apples/oranges comparison. Impact Fees only go to fund the growth share of capital infrastructure, whereas other taxes and fees paid by development are generally used for operating expenses. Additionally, a fiscal impact study would not be helpful in determining the level at which to set the affordable housing linkage fee.

We are happy to discuss further at the meeting tonight.

Thanks, Chris


Chris Meschuk, AICP
Senior Planner
[Planning,%20Housing%2]<https://bouldercolorado.gov/planning>
O: 303-441-4293
C: 303-386-5143
meschukc at bouldercolorado.gov<mailto:meschukc at bouldercolorado.gov>

Department of Planning, Housing and Sustainability
1739 Broadway | PO Box 791 | Boulder, CO 80306
Bouldercolorado.gov<http://www.bouldercolorado.gov/>



From: Brockett, Aaron
Sent: Monday, August 29, 2016 4:54 PM
To: HOTLINE <HOTLINE at bouldercolorado.gov<mailto:HOTLINE at bouldercolorado.gov>>
Subject: Economic impact analysis

In advance of our development fees discussion tomorrow night, I wanted to raise an issue regarding the Economic Impact Analysis by TischlerBise. The analysis gives a total economic impact to the overall city economy based on the number of additional jobs expected over the next 10 years. But, for the impact fees we're considering, we're assessing a per sf cost to new construction based on the costs to the city for maintaining service levels after the new construction is complete.

So the study provides economy-wide impact on a per job basis, while the fees are assessed on a per sf cost for providing government services. Those seem like apples and oranges and to me it gives the economic impact study limited utility.

Instead, I would think we would want to know the revenue to the city from new construction from taxes, fees, etc, broken down on a per sf basis. You would want it broken out into taxes/fees for construction itself and then the annual tax/fee revenue from the new building. You would exclude impact fees and only include things like use tax, property tax, sales tax on retail, etc. That would allow you to get an idea of the per sf revenue benefit to the city.

Is it possible to get such a study in advance of our September 20th meeting? I think it would be extremely useful for our final decision on the impact fee numbers.


Thanks,

Aaron Brockett

Boulder City Council member

brocketta at bouldercolorado.gov<mailto:brocketta at bouldercolorado.gov>

(720) 984-1863
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