WOODBURY PARK E- COMMERCE & DISTRIBUTION CENTER ECONOMIC IMPACT ANALYSIS APRIL 29, 2016

Transcription

1 WOODBURY PARK E- COMMERCE & DISTRIBUTION CENTER ECONOMIC IMPACT ANALYSIS APRIL 29, 2016

2 SUMMARY FINDINGS: WOODBURY PARK ECONOMIC IMPACT ANALYSIS Expanding Fulton County s Economy & Tax Base: Woodbury Park will create a major new development node on the edge of Fulton Industrial Boulevard, an area which already contains one of the largest concentrations of employment in Metro Atlanta. The development site is large enough to support new e-commerce/distribution space, which will further expand the corridor s core economic activity, while also adding new commercial/retail, office and housing development to service the local population. Construction Impacts are projected to include: $195.5 million total investment, including $64.5 million in construction materials purchased locally 880 construction jobs and $35.2 million in annual construction supported payroll for the equivalent of 2 yrs. Impacts from Operations: $23.7 million in net new retail sales to Fulton County More than 2,800 permanent jobs and $89.3 million in new permanent payroll from business operations 2

3 HIGHLIGHTS OF ECONOMIC IMPACT ANALYSIS Local Governmental Revenues at Completion: $2.59 million in annual real estate, personal property and sales tax revenue to Fulton County Nearly $1.7 million in added annual property and sales taxes to the Fulton County School System $627,000 in additional annual revenues to the Boulevard CID and MARTA $3.95 million in combined annual revenue to Fulton County and Fulton County Schools $30.1 million in total local revenue over the first ten years (*Assumes 6 year construction period) $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- $4.58 Million in Annual Revenues to County and Schools at Completion Fulton County Schools 43% Fulton County Fulton County 57% Fulton County Schools Estimated Combined 10 Year Revenues to Fulton County and the Fulton County Schools System from Development of Woodbury Park Property Sales Total NOTE: County revenue projections exclude business licenses, fees and other potential annual revenue. 3

4 WOODBURY PARK E- COMMERCE & DISTRIBUTION CENTER PROJECT SUMMARY T h e s i t e o f t h e Wo o d b u r y P a r k e Commerce & Distribution Center is large enough to support distribution, of fice, retail and housing development i n a c o nv e n i e n t l o c a t i o n a d j a c e n t t o t h e concentration of economic activity o c c u r r i n g a l o n g Fu l t o n I n d u s t r i a l Boulevard. T h e d i s t r i b u t i o n c e n t e r c o m p o n e n t includes six buildings ranging from 238,000 to 630,00 SF and totaling m o r e t h a n m i l l i o n S F, p l u s 41 4 t r u c k b ay s a n d p a r k i n g s p a c e s f o r e m p l oy e e s. T h e 1 4 3, S F r e t a i l c o m p o n e n t c o n s i s t s o f a s u p e r m a r ke t - a n c h o r e d shopping center with 6 out parcels, plus a ser vice station and drug store accessed from FIB. The new retail node represents a significant upgrade to existing nearby of ferings which serve a r e a r e s i d e n t s a n d e m p l oy e e s. T h e o f f i c e c o m p o n e n t i n c l u d e s 21 buildings ranging from 5,000 to 5,400 S F t o t a l i n g 1 0 8, S F, p l u s 47 5 parking spaces for customers and e m p l oy e e s. T h e h o u s i n g c o m p o n e n t c o n s i s t s o f m a r ke t r a te tow n h o m e u n i t s r a n g i n g f r o m 1, to 2, S F, a n d s u p p o r te d by a f u l l service amenity building and pool. Woodbury Park Economic Impact Analysis 4

5 WOODBURY PARK LOCATION Woodbury Park has been proposed for a acre site located on the southeasterly side of Fulton Industrial Boulevard (FIB) at Riverside Drive, immediately to the south of the Fulton Industrial Boulevard, CID The FIB market area currently contains more than 73.4 million SF of industrial and distribution space, representing nearly 7% of the total Metro-Atlanta Inventory. Existing area businesses currently employ more than 19,000 workers I-75 5

6 ECONOMIC IMPACTS OF THE WOODBURY PARK E- COMMERCE & DISTRIBUTION CENTER METHODOLOGY Direct Impacts Indirect (Multiplier) Impacts From Construction From Operation From Guests and Employees Total Direct Economic Impacts From Construction From Operations From Local Employee Spending Total Indirect Economic Impacts For the Woodbury Park development we examined both direct and indirect (multiplier) impacts and public revenues to assess the total economic impact to Fulton County and Fulton Schools and the region Total Economic Impact Public Revenues 6

7 WOODBURY PARK DEVELOPMENT PLAN At completion, Woodbury Park is projected to total nearly 2.74 million SF of new development including: Six warehousing/ distribution buildings containing more than 2.2 million SF A 128,500 SF super-marketanchored retail center with six commercial out parcels Two additional retail parcels accessed from FIB supporting another 15,000 SF A 108,000 SF multi-tenanted office park in 21 buildings A 128-unit townhouse development with amenity building More than 2,800 workers employed on site when fully developed EXHIBIT 1: DEVELOPMENT PLAN FOR WOODBURY PARK E- COMMERCE & DISTRIBUTION CENTER Development Building Estimated Allocated Truck Customer/Emp- Components Square Feet FAR Acres Bays loyee Parking e- Commerce/Distribution Sites Building 1 238, Building 2 296, Building 3 360, Building 4 431, Building 5 630, Building 6 302, Subtotal 2,258, Retail Grocery/Anchor 113, Retail Shops 6, Out Parcel #1: Commercial/Retail 1, Out Parcel #2: Commercial/Retail 1, Out Parcel #3: Restaurant 1, Out Parcel #4: Restaurant Out Parcel #5: Commercial/Retail 1, Out Parcel #6: Commercial/Retail 1, FIB North Out Parcel: Drug Store 10, FIB South Out Parcel: Gas Station 4, Subtotal 143, Office Office Park #1 (South - 7 buldings) 37, Office Park #2 (East - 14 buildings) 70, Subtotal 108, Number of Dwelling Allocated Resident Buildings Units SF/Unit Total SF Acres Parking Residential Townhouse A Model , , Townhouse B Model ,600 89, Townhouse C Model 2 8 2,400 19, Pool/Clubhouse 1 3,000 3, Subtotal , , ROW/Wetlands/Assessed As Open Space Building SF FAR Acres Parking Project Totals: 2,736, ,397 Sources: Walton Southeast USA, Paulson Mitchell, Inc. and Bleakly Advisory Group, Inc. 7

8 ECONOMIC IMPACTS FROM CONSTRUCTION The construction of Woodbury Park is projected to result in: $195.5 million total investment in construction and development $64.5 million in materials purchased locally subject to local sales taxes 880 construction jobs annually over the equivalent of 24 months of construction $35.2 million in annual construction payroll $6.8 million in local public revenues from construction - including sales taxes, permits and development fees EXHIBIT II: ECONOMIC BENEFITS FROM CONSTRUCTION OF THE WOODBURY PARK E- COMMERCE & DISTRIBUTION CENTER SF/DU's Average Construction General Economic Benefits from Construction /Acres Unit Cost Cost Construction Costs Grocery/Anchor 113,531 $ $ 17,029,650 Retail Shops/Commercial Out Parcels 23,600 $ $ 2,714,000 Restaurants 1,900 $ $ 380,000 Convenience/Gas Station 4,500 $ $ 810,000 e- Commerce/Distribution Sites 2,258,000 $ $ 135,480,000 Office Park 108,000 $ $ 12,960,000 Townhomes 128 $ 195,000 $ 24,960,000 Residential Clubhouse/Pool 3,000 $ $ 675,000 Access Roads, Detention Ponds/Other 41.1 $ 12,500 $ 513,551 Total Square Feet of Development/Construction Value 2,736,531 $ $ 195,522,201 Construction Hard 80% of total $ 156,417,760 Construction 55% of hard costs $ 86,029,768 Construction materials purchased 75% of hard costs $ 64,522,326 Construction Labor 45% of hard costs $ 70,387,992 Average annual payroll (assumes 24 months of construction) $ 35,193,996 Average Fulton County Annual Construction wage $ 40,010 Average annual full time equivalent (FTE) construction employment 880 Annual workside retail spending by construction worker $8.00 /day $ 1,829,630 GENERAL ECONOMIC BENEFITS FROM CONSTRUCTION $197,351,831 Public Revenues from Construction Fulton County sales tax- - 1% $ 663,520 MARTA sales 1% $ 663,520 Fulton County School District local sales tax- - 1% $ 663,520 Total Local sales taxes from construction labor retail $ 1,990,559 Fees and Permits: Building Permits $ 701,000 Other Plan Review Inspections & Fees $ 1,561,000 Water/Sewer Connections $ 530,000 LOCAL PUBLIC REVENUES FROM CONSTRUCTION $6,773,117 Sources: Walton Southeast USA, Paulson Mitchell, Inc. and Bleakly Advisory Group, Inc. 8

9 ECONOMIC IMPACTS FROM ANNUAL OPERATIONS EXHIBIT III: ESTIMATED ECONOMIC BENEFIT FROM OPERATIONS OF WOODBURY PARK E- COMMERCE & DISTRIBUTION CENTER Increased Taxable Market Value SF/DU's Tax Value PSF/Unit Market Value e- Commerce/Distribution Sites 2,258,000 $35.00 $79,030,000 Retail Space 143,531 $ $17,941,375 Office 108,000 $ $14,040,000 Townhomes 128 $205,000 $26,240,000 Total Project Market Value $137,251,375 Operation of Commercial Components Total Sales 45% Net New Taxable Sales Annual Retail Sales at $300 per SF $ 43,059,300 $19,376,685 $23,682,615 Permanent Payroll Total Employees Average Salary Payroll/ Emp. Purchases 1 employee per 1,000 SF 2,258 $30,160 $68,101,280 1 employee per 350 SF 309 $49,500 $15,274,286 1 employee per 600 SF 239 $24,640 $5,894,340 Subtotal 2,806 $31,816 $89,269,905 Annual Local Purchases by $8 per day $5,836,043 GENERAL ECONOMIC BENEFIT FROM OPERATIONS $118,788,563 Sources: Walton Southeast USA, U.S. Bureau of Labor Statistics and Bleakly Advisory Group, Inc. $137.2 million in new taxable full market value created at Woodbury Park $43.1 million in total annual retail sales within Fulton County of which $23.7 million in estimated to represent net new retail sales resulting in additional sales taxes captured within Fulton County 2,800 permanent jobs and nearly $89.3 million in annual payroll when built out 9

10 ECONOMIC IMPACTS- ANNUAL PUBLIC REVENUES Fulton County: $1.85 million in property taxes at build- out $295,200 in local sales taxes annually (LOST) $113,500 in annual business license fees $2.26 million increase in annual tax revenue to Fulton County Fulton County School System: $1.53 million in property taxes $162,400 FCSS share of e- SPLOST* (*Excludes e- SPLOST share to the Atlanta Public Schools) A near $1.7 million increase in annual FCSS revenues Other: $295,200 annual MARTA sales taxes $331,400 annual taxes to the Fulton Industrial Boulevard CID EXHIBIT IV: PUBLIC REVENUES FROM WOODBURY PARK E- COMMERCE & DISTRIBUTION CENTER Market Taxable Property Taxes Value Digest e- Commerce/Distribution Sites $ 79,030,000 $ 31,612,000 Retail Space $ 17,941,375 $ 7,176,550 Office $ 14,040,000 $ 5,616,000 Residential $ 26,240,000 $ 10,496,000 Commercial Personal Property (45% of Non- residential RE) $ 69,888,163 $ 27,955,265 Total Market/Taxable Digest Values $ 207,139,538 $ 82,855,815 Property Taxes at Build Out Millage Rates Annual Revenue Fulton County Operating $ 869,986 South Fulton Special Service District $ 959,387 Fulton Industrial CID $ 331,423 Fulton County Public Schools $ 1,532,998 Fulton Unincorporated Bonds $ 20,714 Total Property Tax $ 3,714,509 Business Licenses retail businesses paying an average of $1,375 each $ 17,861 Business Licenses small office businesses paying an average of $990 each $ 24,744 Business Licenses- - 6 distribution businesses paying an average of $11,800 each $ 70,868 Total Business Licenses $ 113,473 Local Sales Taxes Local Sales Taxes Retail Sales (net new at 55% of total sales) $ 23,682,615 $ 710,478 Local Expenditures by Non- Resident Employees $ 5,836,043 $ 175,081 Annual Retail Sales and Local Sales (3%) $ 29,518,658 $ 885,560 ESTIMATED TOTAL ANNUAL REVENUES TO: FULTON COUNTY $ 2,258,747 FULTON COUNTY SCHOOL DISTRICT (E- SPLOST EXCLUDES SHARE TO APS) $ 1,695,351 FULTON INDUSTRIAL BOULEVARD CID $ 331,423 MARTA $ 295,187 TOTAL LOCAL ANNUAL TAX REVENUES - ALL JURISDICTIONS $ 4,580,708 Sources: GA Dept. of Revenue and Bleakly Advisory Group, Inc. A combined $4.58 million in total annual tax revenues to local governments (*excludes water & sewer user fees) 10

11 10 YEAR REVENUES TO FULTON COUNTY AND THE FULTON COUNTY SCHOOL DISTRICT* ESTIMATED TEN YEAR REVENUE: WOODBURY PARK Fulton County Property $ 14,438,157 Sales $ 2,406,963 Subtotal $ 16,845,120 Fulton County Schools Property $ 11,963,580 Sales $ 1,323,830 Subtotal $ 13,287,410 County & Schools Property $ 26,401,737 Sales $ 3,730,793 Total $ 30,132,530 Source: BAG $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- Estimated Combined 10 Year Revenues to Fulton County and the Fulton County Schools System from Development of Woodbury Park Property Sales Total NOTE: County revenue projections exclude business licenses, fees and other potential annual revenue. Over its initial ten years of development and operation, Woodbury Park is projected to generate: $16.8 million in taxes to Fulton County $13.3 million in taxes to the Fulton County School System $30.1 million in combined taxes to Fulton County and Fulton County Schools (*Projections assume a 6- year build out from start to completion. Revenue estimates exclude water/sewer user fees, sales taxes to MARTA and property taxes to the Fulton Industrial Boulevard CID.) 11

12 WOODBURY PARK ECONOMIC IMPACTS DIRECT AND INDIRECT (MULTIPLIER EFFECT) Construction: $166.2 million in direct investment will generate a total of $391.3 million impact on regional output $35.2 million in annual construction payroll will have a $71.5 million regional impact on earnings 880 direct construction jobs will support 1,834 total jobs regionally (Combined) Operations: $209.0 million in annual operations will stimulate $471.5 million impact on regional output $89.3 million in annual payroll will have a $177.4 million regional impact on regional earnings EXHIBIT V: DIRECT AND INDIRECT REGIONAL IMPACTS FROM WOODBURY PARK E- COMMERCE & DISTRIBUTION CENTER Direct Effects Multiplier Regional Impact Construction Impacts Construction Investment (Output) $ 166,193, $ 391,286,849 Construction Earnings (Payroll) $ 35,193, $ 71,468,448 Construction Employment ,834 Permanent Operational Impacts Commercial/Retail Annual Revenue (Output) $ 23,682, $ 49,435,091 Earnings (Payroll) $ 5,894, $ 11,281,177 Employment $ 395 Professional/Medical/Service (Office) Annual Revenue (Output) $ 33,942, $ 74,039,215 Earnings (Payroll) $ 15,274, $ 36,985,766 Employment $ 721 Warehousing & Distribution Annual Revenue (Output) $ 151,336, $ 347,997,541 Earnings (Payroll) $ 68,101, $ 129,147,267 Employment 2, ,550 Sources: RIMS II for Atlanta MSA/BAG 2,800 direct permanent on- site jobs will support a total of 5,667 jobs throughout the Metro- Atlanta Region 12

13 Prepared by: Since our founding in 2001, we have been focused on helping our clients understand how market and economic forces impact their development vision. Our advice is grounded in more than 25 years of experience in both consulting and implementation. As a result, we understand what it takes to make a development project a reality. Our clients include developers, land owners, investors, corporations, institutions, development corporations, public authorities and governments. Bleakly Advisory Group takes pride in providing our clients insightful, objective analyses based on a thorough understanding of market trends and their financial implications. Our analysis is rooted in the knowledge gained from completing assignments throughout Georgia and the southeast. We are a trusted advisor to our clients and are determined to go the extra mile in helping them achieve their objectives. Over 1 /2 of our assignments are from returning clients who learned the value of our expertise