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KORE Power Impact Analysis April 2023 Impact Analysis Impact Analysis Overview Below is an analysis of KORE Power’s impact over the next 10 years to demonstrate the economic value the company will generate in Maricopa County. Based on the assumptions outlined below, KORE Power will generate an estimated $18.8 million in direct tax revenues and an additional $704,734 in indirect tax revenues for a total of $19.5 million in tax revenue to Maricopa County over a 10-year period. In 10 years, this company will directly create an estimated $1.1 billion of personal income, plus an additional $311 million in indirect personal income for a total of $1.4 billion. Over a 10-year period KORE Power will create $5.5 billion in economic output, with $4.6 billion in direct economic output, and $921.2 million in indirect output. Assumptions Total Employment at the end of 10 Years: 2,367 jobs Annual Payroll at the end of 10 Years: $120.1 million Total Square Feet of Property: 1,030,000 square feet by Year 1 Total Real Property Improvement Investment: $1.105 billion Total Personal Property Investment: $873 million 10-Year Economic Impact to Maricopa County Impact Jobs Personal Income Economic Output Revenues Direct 2,367 $1,100,970,500 $4,631,851,920 $18,815,612 Indirect 578 $311,062,762 $921,281,574 $704,734 Total 2,946 $1,412,033,270 $5,553,133,500 $19,520,342 Impact Analysis Direct Revenue and Economic Impact Year Jobs Personal Income Output Revenues 2023 1,708 $86,681,000 $364,672,402 $5,419,646 2024 1,708 $86,681,000 $364,672,402 $762,196 2025 2,038 $103,428,500 $435,130,184 $4,523,315 2026 2,038 $103,428,500 $435,130,184 $1,117,115 2027 2,367 $120,125,250 $505,374,458 $1,181,890 2028 2,367 $120,125,250 $505,374,458 $1,162,290 2029 2,367 $120,125,250 $505,374,458 $1,162,290 2030 2,367 $120,125,250 $505,374,458 $1,162,290 2031 2,367 $120,125,250 $505,374,458 $1,162,290 2032 2,367 $120,125,250 $505,374,458 $1,162,290 Total 2,367 $1,100,970,500 $4,631,851,920 $18,815,612 Year Jobs Personal Income Output Revenues 2023 418 $24,490,421 $72,533,831 $55,486 2024 418 $24,490,421 $72,533,831 $55,486 2025 498 $29,222,178 $86,547,979 $66,205 2026 498 $29,222,178 $86,547,979 $66,205 2027 578 $33,939,594 $100,519,659 $76,892 2028 578 $33,939,594 $100,519,659 $76,892 2029 578 $33,939,594 $100,519,659 $76,892 2030 578 $33,939,594 $100,519,659 $76,892 2031 578 $33,939,594 $100,519,659 $76,892 2032 578 $33,939,594 $100,519,659 $76,892 Total 578 $311,062,762 $921,281,574 $704,734 Year Jobs Personal Income Output Revenues 2023 2,126 $111,171,422 $437,206,233 $5,475,130 2024 2,126 $111,171,422 $437,206,233 $817,680 2025 2,536 $132,650,678 $521,678,163 $4,589,520 2026 2,536 $132,650,678 $521,678,163 $1,183,320 2027 2,946 $154,064,845 $605,894,118 $1,258,782 2028 2,946 $154,064,845 $605,894,118 $1,239,182 2029 2,946 $154,064,845 $605,894,118 $1,239,182 2030 2,946 $154,064,845 $605,894,118 $1,239,182 2031 2,946 $154,064,845 $605,894,118 $1,239,182 2032 2,946 $154,064,845 $605,894,118 $1,239,182 Total 2,946 $1,412,033,270 $5,553,133,500 $19,520,342 Indirect Revenue and Economic Impact Total Revenue and Economic Impact Impact Analysis Year Property Taxes Total Business Residential 2023 $567,771 $512,541 $55,230 2024 $567,771 $512,541 $55,230 2025 $889,518 $823,618 $65,900 2026 $889,518 $823,618 $65,900 2027 $901,622 $825,083 $76,539 2028 $901,622 $825,083 $76,539 2029 $901,622 $825,083 $76,539 2030 $901,622 $825,083 $76,539 2031 $901,622 $825,083 $76,539 2032 $901,622 $825,083 $76,539 Total $8,324,310 $7,622,816 $701,494 Property Tax Analysis Impact Analysis Impact Analysis About GPEC Economic Impact Model The Greater Phoenix impact model calculates economic and revenue impacts of new business in the region. The underlying theory behind this regional model is that all communities benefit when a new business locates in the region, both in terms of employed residents and new revenues. The purpose of the model is to show how this distribution of economic benefits may occur. Economic Impact The impact model uses county-level multipliers from the IMPLAN Group for Maricopa County to calculate direct and indirect impact on specific communities in the Greater Phoenix region. The model also calculates economic impact to the county and state economies in terms of new jobs, output, and revenue generated. In addition to jobs, new businesses create new consumer spending throughout. The payroll from the new businesses can be converted into effective buying income. On a regional basis, effective buying income is distributed across retail and service categories based on spending patterns from the Bureau of Labor Statistics. Revenue Impact Direct revenue impacts include revenues generated directly by the businesses, based on project information such as real property values, employment, direct sales, and local and nonlocal purchases. Additional revenues generated by related supplier and consumer jobs, and supported residents are included in the indirect and total impact results. All revenue projections are in current dollars. Disclaimer The results from this analysis suggest only one possible scenario based on given project parameters and assumptions, and do not exclude other development possibilities under different assumptions. The economic impact model serves as a tool for basic quantitative evaluations for economic development projects. The results are based on the current economic structure of the communities, and current tax rates. The results of the model are order-of-magnitude estimates and are intended only as a general guide as to show how businesses and development projects may impact the region.