10A Action 2010 0405 - Laserfiche WebLink

Home

I. INTRODUCTION The following report, prepared by Keyser Marston Associates, Inc. (KMA), addresses the fiscal impacts on the City of San Leandro's General Fund to be generated by the development of Phase 1' of the Kaiser Permanente Medical Center Project (Medical Center). The purpose of the analysis is to: 1. Determine if the annual revenues to be generated by the first phase of the Medical Center to the City of San Leandro will be sufficient to fund the cost of providing City services to the Medical Center; 2. Estimate the net fiscal impacts of a potential retail development on the 25 -acre parcel immediately north of the subject parcel. This parcel is also owned by Kaiser Foundation Hospitals and Kaiser is considering selling the property for future retail development. Impacts that have been analyzed include recurring annual impacts, one-time construction tax impacts, and the loss of local property tax revenues that are currently generated by the property but will be eliminated with the development of the tax exempt Medical Center. For comparison purposes, KMA has also estimated the annual net General Fund revenues that could potentially be generated by two alternative hypothetical "opportunity cost" development scenarios for the subject property in lieu of the Medical Center. The alternative scenarios consist of a 410,000 square foot retail center and a 1.2 million square foot office campus. A. Description of the Proposed Kaiser Permanente Medical Center Kaiser Foundation Hospitals currently owns 63 -acres acres located near interstate 880 and Marina Boulevard in San Leandro. The site is bounded by the 1-880 freeway to the east, Marina Boulevard to the north, Merced Street and the existing office/retail center to the west, and Fairway Drive to the south. Kaiser intends to develop the proposed Medical Center on the southern 38 -acres of the site and sell the northern 25 -acre parcel for development as a retail center. The Medical Center is being built to replace the existing aging Kaiser Permanente Hayward, which will close once the San Leandro Medical Center is open. A site plan of the Phase 1 development is provided as Figure 1. The Medical Center will be designed to exhibit environmentally sustainable practices during both construction and operation and it will provide the community with state-of-the-art inpatient and outpatient The subject fiscal impact analysis addresses only Phase 1 of the proposed Medical Center. There is significant uncertainty regarding the scope and timing of future phases. Once the future phase(s) are more clearly defined, the fiscal impact analysis will be updated to include an assessment of the full build -out. Keyser Marston Associates, Inc. Page 1 \\Sf-fs1\wp\19\19096\19096.036\003-001.doc; March 2009