Client: Republic Urban Properties
Republic Urban Properties retained GG+A to estimate the fiscal and economic impacts of the proposed Gateway at Millbrae Station development (the “development”) on the City of Millbrae General Fund. The proposed development program included approximately 158,000 square feet of office space, 46,000 square feet of retail space, a 126-room hotel, and 376 multi-family units.
GG+A completed the fiscal impact analysis based on extensive review of City of Millbrae budgets and annual financial reports, input provided by representatives of the City of Millbrae, Central County Fire Department, and San Mateo County Sherriff, information obtained from the developer of the proposed project, interviews with real estate brokers and a review and analysis of secondary data sources.
GG+A prepared estimates of the following taxes and fees for the totality of the project and as applicable individual land uses: property tax, property tax in-lieu of motor vehicle license fees, sales tax, transit occupancy tax, fire assessments and franchise fees.
GG+A estimated general fund expenditures that the City of Millbrae may incur to serve the development including general government, public safety (police and fire), community services, and street maintenance by land use and for the project as a whole.
Because the City was undergoing a software and systems related changes, it was unable to provide a budget by department and function so GG+A obtained from the City its budget worksheet detailing all proposed citywide expenditures by fund, department, and account type for the current fiscal year. GG+A analyzed the proposed expenditures to prepare a summary of General Fund expenditures by department or function.
GG+A compared the estimated general fund revenues as a whole and by land use to the estimated general fund expenditures as a whole and by land use to identify the next fiscal impact of the proposed development.
GG+A prepared an extensive report describing the methodologies and assumptions employed and the resulting estimates, findings and conclusions. GG+A also prepared a rebuttal to a “peer review” of the report that resulted in no changes to the estimates and conclusions.
GG+A also estimated the economic impacts of the construction of the development, on-going operation of office, retail, and hotel uses, and household spending on the local Millbrae economy. Direct and indirect estimates of employment added, income added, and economic output the project is estimated to generate were prepared using Implan, an input-output model. GG+A prepared a report presenting the impacts and explaining the methodology used to prepare the analysis and the key inputs and assumptions and results.