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Controller's Office. These revenue sources do not apply to the Medical Center but do apply to the "opportunity" cost scenarios (Appendix Table B-1). Property Tax Revenues — Because of its tax exempt status, the Medical Center is not required to pay any property taxes. The "opportunity cost" scenarios would generate property taxes and a portion would accrue to the City's General Fund. The General Fund receives 13% of the 1 % base property tax levy. Revenues from the opportunity cost scenarios are provided on Appendix Table B-1. Sales and Use Tax Revenues — The Medical Center will generate sales tax revenues on-site from its cafeteria and gift shop and off-site from the purchases of employees at San Leandro retail outlets. The Medical Center also has the potential to generate use tax from the purchase of equipment. However, depending on Kaiser's purchasing practices, the City of San Leandro may or may not be designated as the point of sale for the purchases, which will impact whether the City receives the use tax revenues. The City of San Leandro receives sales tax revenues equal to 1 % of taxable sales. - On-site Taxable Sales from Cafeteria and Gift Shop — Kaiser has estimated that the Medical Center's cafeteria and gift shop will annually generate $611,000 of taxable sales, which will yield $6,110 of annual City sales tax. (Table 5-D). Off-site Taxable Sales from Employees — A portion of employees' daytime expenditures will be spent in San Leandro. Based on the International Council of Shopping Center's survey of office workers, it is estimated that employees will generate $3,100,000 of annual taxable sales for San Leandro merchants, yielding $31,000 of sales tax revenue to the City (Table 5-D).4 Use Taxes from the Purchase of Equipment — Kaiser has estimated that it will purchase approximately $45 million of equipment for the Medical Center. Assuming an average life of 10 -years and that San Leandro is designated as the point of sale for 50% of the equipment purchase, it is estimated that on an annualized basis, the purchase of equipment will generate $22,500 of use tax revenue to the City. (Table 5-D) - Sales Taxes to be Generated by Hypothetical Retail Development on Northem Parcel and Opportunity Cost Scenario — It has been assumed that the center would achieve gross sales volumes averaging $400 per square foot, with 95% taxable. It has been assumed that one of the anchor tenants would be an existing business in 4 While the survey relates specifically to office workers, KMA reviewed the salaries of both office workers and hospital staff and found them to be adequately similar to support using the office worker expenditure survey as an estimate of hospital worker expenditures. Keyser Marston Associates, Inc. Page 16 \\Sf-fs1\wp\19\19096\19096.036\003-001.doc; March 2009