Tri-City Raceway Site Assessment

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1 Tri-City Raceway Site Assessment City of West Richland and Port of Kennewick Special Joint Meeting September 25, 2012

2 Tri-City Raceway Site Assessment Agenda Regional context Site strength, opportunities and challenges Potential use options Site development principles Site development alternatives Impact of alternatives Comments or questions

3 Regional Context Raceway site Tri-Cities metro West Richland Benton City Red Mountain AVA Proposed Red Mountain Interchange Interstate-82, SR-224

4 Site Issues, Strength and Opportunities Issues Keene Road Interchange Lack of adequate infrastructure Limited access/ circulation Outside of the urban growth area BPA easement Strength e en Raceway area Ke Current access ad Ro Existing sub station SR 22 4 BPA easement 92 acres site West Richland city limits Flat topography Proximity to Tri-Cities metro Proposed Red-Mountain Interchange Proximity to state routes Proximity to Red-Mountain AVA Proximity to market Current LI zoning Availability of labor force Opportunities Raceway property Proposed Red Mountain Interchange Red Mountain AVA boundary Not to scale West Richland city limits Collaboration with public and private entities Regional destination Gateway to West Richland and Tri-Cities metro Tap into the already existing market

5 Uses and Alternatives Warehouse - wine support Manufacturing - wine related (e.g. cork and capsule providers, barrel manufacturers, winery equipment suppliers, glass bottle suppliers, label and packaging design, laboratories, marketing services, packaging and printing etc.) A Wine related manufacturing Warehouse Use Placement Considerations - Wine and tourism focus near the AVA C - Large land tracts for large scale building uses B Wine support Wine related research - Manufacturing uses closer to SR 224 Wine incubator - Large scale warehouses away from the street Wine and toursim Wine production/ storage Warehouse

6 Alternative - Unincorporated Benton County - Development under Benton County Jurisdiction - Limited infrastructure - access and circulation - No water or sewer services or irrigation water (on-site water from existing wells) - Limited utilities (gas, cable, phone) - Limited buildable capacity - Development at 15% lot coverage

7 Alternative - Incorporated/ West Richland UGA - Development within West Richland UGA - Potential for road connectivity - Municipal water and sewer services - Utilities extended to the site as part of UGA - Development at 25% lot coverage

8 West Richland UGA Alternative - Design Considerations - Build on existing resources (utilize race-track features, preserve existing trees) - Turn issues into opportunities (BPA easement trail system) - Central corridor - Wine Boulevard - Wine production/ wine incubator cluster - tourism attraction Large scale manufacturing Research - Demonstration vineyard educational component Plaza Wine Boulevard Wine Production Vineyard - demonstration Large scale warehouse

9 West Richland UGA Alternative - Concepts Central plaza Trail system Research and processing Wine plaza Wine production and storage Central wine corridor Demonstration winery Warehouses

10 West Richland UGA Alternative - Concepts

11 West Richland UGA Alternative - Concepts Source: Badger Mountain South presentation

12 Cost-Benefit Comparison Unincorporated Benton County West Richland UGA Investment Impact Total building area 480,000 sq-ft 800,000 sq-ft Total Investment at full buildout $42,927,962 $71,820,303 Total return (improvement and building) $45,585,235 $77,051,150 Net revenue from improved property sale (total return minus total investment) $2,657,273 $5,230,847 Job Impact Number of Jobs in Manufacturing Number of Jobs in Warehouse Total jobs Total annual income from $10/hr $12,854,400 $21,444,800 UGA Alternative - More investment, more return - Net improvement revenue mil more - Over 400 more jobs - $8.6 mil more in total annual income Direct State and Local Jurisdiction Tax Benefits City of West Richland sales tax, real estate excise tax (REET), property tax, and hotel-motel tax Benton County sales tax, REET, and property tax Benton-Franklin PTBA (Transit District) sales tax Fire and School Districts property tax Port of Kennewick property tax State of Washington sales tax, REET, property tax, business and occupation (B&O) tax

13 Cost-Benefit Comparison Short Term Revenue ($) Unincorporated Benton County West Richland UGA Construction sales tax - one time total 3,261,563 (@7.7%) 5,859,518 (@8.3%) West Richland revenue construction sales tax (short term) 0 600,071 (@.85%) Benton County revenue from construction sales tax (short term) Long Term Revenue ($) 423,579 (@1%) 105,895 (@.15%) Property tax revenue per year 563, ,892 West Richland revenue from property tax (long term) Benton County revenue from property tax (long term) (@$ per 1000 of assessed value) 0 58,212 (@$11.77 per 1000 of assessed value) 120,508 (@ $1.564 levy rate) 98,394 (@$1.277 levy rate) Retail tax total per year 2,310,000 4,185,368 West Richland 0 428,622 Benton County 300,000 75,639 Short-Term Impacts - Revenue from improvement - 5 mil - Construction sales tax revenue mil - UGA alternative - 5 mil more (improvement and const. sales tax) Long-Term Impacts - Property tax revenue mil/yr - Retail tax revenue 4.18 mil/yr - UGA alternative 2.2 mil more in property and retail taxes

14 Cost-Benefit Comparison Investment and return on site development $90,000,000 Property tax revenue per year $140,000 $80,000,000 $120,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 Total Investment at full buildout Total return (improvement and building) $100,000 $80,000 $60,000 $40,000 West Richland revenue from property tax (long term) Benton County revenue from property tax (long term) $20,000,000 $10,000,000 $20,000 $0 Unincorporated West Richland UGA $0 Unincorporated West Richland UGA Retail sales revenue Port of Kennewick property tax revenue per year $30, $25, West Richland $20, $15, Benton County $10, $5, Unincorporated West Richland UGA $0.00 Unincorporated West Richland UGA

15 Comments or questions? Thank you!

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