Agenda Attachments for June 23, 2022 Board Retreat

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26 3) Revenue Per Acre Analysis: Background: Value per sq. ft. and value per acre, and associated tax revenue can range from higher manufacturing equipment businesses being added to the base building and land value, compared to a more basic building value with less equipment. Also,the quality and building specifications based on use can vary from food production, pharmaceutical manufacturing and distribution, which affects total sq.ft. values. County revenues can also be generated from sales tax with retail buildings that can average 3 to 4 times the property value. • 10,000-12,000—sq.ft./Acre • $80—sq.ft. taxable (Range is$55-$140 per sq. ft.) ($80/sf Morinaga and Medline average) • $800,000--$960,000 Value (Includes land, building and business properties) • Orange County's current property tax rate$7,680-$9,216 per acre per year(Retail revenue may be 3 times more due to sales tax) • $2,180-$3,716 per acre net positive (after deducting the $5,500/acre utility extension cost) 4) Summary Analysis: As an example, and using an average development potential of 11,000 sq.ft. per acre, and a low value per square foot of$80 per sq. ft. (average of the Morinaga food manufacturing building and the Medline distribution building value). A single 130-acre net project could develop an estimated 1.43 million sq. ft.@ $80 per sq. ft., or a value of$114.4 million would generate $1.1 million per year in taxes. Therefore, at the end of the first 5 years for one incentivized project that is recruited, after incentives have ceased, it would represent cost recovery and/or return on investment. • Jobs per acre potential, assuming 10,000 sq. ft. building; • Industrial: 5-16 jobs per 10,000 sq. ft. • Retail:40 jobs per 10,000 sq. ft. • Office: 35 jobs per 10,000 sq. ft. While it is unknown how the Buckhorn EDD's larger tracts may ultimately develop concerning this private investor activity, current trends point to additional growth in a significant level of living wage jobs and property tax base with this by-right (ORM and Economic Development Buckhorn District 2 zoning) development activity in designated economic development and CITAN acreage. A Return on Investment (ROI) analysis of the Buckhorn EDD region will continue to show increasing economic benefit to the County as prospect activity continues the County's Article 46-funded utility infrastructure that has been completed in this area is a significant contributor to this ongoing industrial activity now bringing speculative distribution/light manufacturing tenants, and advance manufacturing tenants like Thermo Fisher Scientific.