10A Action 2010 0405 - Laserfiche WebLink

Home

CITY OF SAN LEANDRO STAFF REPORT DATE: April 5, 2010 TO: Stephen Hollister, City Manager FROM: Luke Sims, Director -7— / Community Development BY: Jeff Kay, Business Development Analyst-1— Community nalystCommunity Development SUBJECT PROJECT/PROJECT DESCRIPTION: APPROVED AND FORWARDED TO CITY COUNCIL Stephen L. Hollister City Manager UPDATE ON KAISER FISCAL IMPACT ASSESSMENT AND DEVELOPMENT AGREEMENT SUMMARY AND RECOMMENDATION To assist in the negotiations for a Development Agreement for the Kaiser Medical Center Project, the City engaged Keyser Marston Associates, Inc. (KMA) in May of 2009 to prepare a fiscal impact assessment. This item is intended to provide an opportunity for the City Council and the public to review the draft results from that study and to receive an update on the negotiations with Kaiser for a Development Agreement. This report is provided for information only and no action is required at this time. BACKGROUND Fiscal Impact Assessment: As the City and Kaiser have worked to negotiate the terms of a potential Development Agreement for the proposed medical center project, the City identified a need to understand the likely fiscal impacts of the project. As a tax-exempt, non-profit entity, the proposed Kaiser Medical Center will be largely exempt from property taxes, and therefore will differ from most other types of development in terms of its fiscal impact on the City. At the City's request, Keyser Marston Associates (KMA) prepared a fiscal impact assessment to estimate the magnitude of General Fund revenues and expenses to be generated by the proposed Medical Center. The KMA study focused primarily on Phase 1 of the Medical Center component of the project, but also incorporated an assessment of a potential retail development on the adjacent north side of the site. As shown in the tables below, recurring General Fund revenues from the Phase 1 of the Medical Center are estimated to be $130,000 annually. Recurring General Fund expenditures are estimated to be $559,000 annually. The net annual fiscal impact of Phase 1 of the Medical Center, therefore, is estimated to be a loss of $429,000 per year ($130,000 less $559,000).