Agenda - 05-25-2006 - 2 - Laserfiche WebLink

Browse Search

6 ATTACHMENT 2 MARKET ANALYSIS BRIEFING (November 2004) Submitted by Market Street Services, Inc. Carolina North is a project with major economic impacts over its long development period. To put this in perspective, the impact of Carolina North annual operations at the end of Phase 2 (which excludes construction expenditures) is more than the current employment in the entire retail sector in Orange County and more than twice the total salary and wages to the County's retail employees. There is more to Carolina North than the economic impacts it has from construction and operational expenditures. At least as important as its expenditure impacts are the impacts that Carolina North will have on increased research and intellectual capacity for the state of North Carolina. Every dollar spent by the state of North Carolina on university research funding can typically be leveraged to attract an additional $9 from federal and private sources. Money invested in research facilities and programs attract top faculty and students capable of doing cutting -edge research. Research done at Carolina North can attract new and expanding firms to whom proximity to the university is critical. Carolina North will allow UNC- Chapel Hill to be a leading research university in this increasingly competitive environment. It will also be a key catalyst in helping the State to be a force in the New Economy. Carolina North has important long -term and far - reaching benefits for its local communities, the region, and the State of North Carolina. Impact of Construction When the Carolina North development is completed, about eight million square feet of mixed use space will have been built. The first two phases, with approximately 2 -3 million square feet of development, account for over $527 million of construction expenditures. By the end of Phase 2: • Nearly 9,000 jobs will be created as a result of construction expenditures, • Which equates to $353 million in salary and other personal income, and • $979 million in business revenue will be generated. Impact of Operations In addition to the significant construction impacts, Carolina North will have a continuing impact from the everyday operations of the university uses, joint research and private firms, retail businesses, as well as the household expenditures or Carolina North employees. Impacts from these components are ongoing and increase as more of Carolina North is built and occupied. At the end of Phase 2: • over 7,500 full -time, ongoing jobs will be created as a result of Carolina North operations, • which equates to $433 million in annual salary and other personal income, • and $600 million in annual business revenue will be generated. Tax Impact The Carolina North development will provide a new and significant source of revenue to both Carrboro and Chapel Hill, as well as to Orange County and North Carolina. This impact analysis looks at property, sales, and income tax from direct Carolina North expenditures. Actual tax impact will be considerably higher from indirect expenditures and other types or taxes that have not been estimated here. By the end of Phase 2: • Carolina North is expected to generate $48 million in tax revenue annually; $26 million in state income tax, $17 million in sales tax, and $5 million in property taxes. • Construction expenditures will generate an additional $5,8 million in sales tax revenues. These are not recurring revenues.