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AUGUST 2024 Sub-Zero Impact Analysis 602.256.7700 /// gpec.org Impact Analysis Overview Below is an analysis of Sub-Zero’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, Sub-Zero will generate an estimated $2 million in direct tax revenues and an additional $420,000 in indirect tax revenues for a total of $2.5 million in tax revenue to Maricopa County over a 10-year period. In 10 years this company will directly create an estimated $156 million of personal income, plus an additional $112.7 million in indirect personal income for a total of $268.7 million. Over a 10-year period Sub-Zero will create $1.06 billion in economic output, with $656.3 million in direct economic output, and $406.8 million in indirect output. Assumptions • Total Employment at the end of 10 Years: 300 jobs • Annual Payroll at the end of 10 Years: $15.6 million • Total Square Feet of Property: 599,351 square feet by Year 1 • Total Real Property Improvement Investment: $96.8 million • Total Personal Property Investment: $50.3 million 10-Year Economic Impact to Maricopa County Impact Jobs Personal Income Economic Output Revenues Direct 300 $156,000,000 $656,301,780 $2,047,715 Indirect 210 $112,736,200 $406,800,990 $419,572 Total 510 $268,736,200 $1,063,102,770 $2,467,287 IMPACT ANALYSIS 2 Direct Revenue and Economic Impact Year Jobs Personal Income Output Revenues 2024 300 $15,600,000 $65,630,178 $694,187 2025 300 $15,600,000 $65,630,178 $150,392 2026 300 $15,600,000 $65,630,178 $150,392 2027 300 $15,600,000 $65,630,178 $150,392 2028 300 $15,600,000 $65,630,178 $150,392 2029 300 $15,600,000 $65,630,178 $150,392 2030 300 $15,600,000 $65,630,178 $150,392 2031 300 $15,600,000 $65,630,178 $150,392 2032 300 $15,600,000 $65,630,178 $150,392 2033 300 $15,600,000 $65,630,178 $150,392 Total 300 $156,000,000 $656,301,780 $2,047,715 Year Jobs Personal Income Output Revenues 2024 210 $11,273,620 $40,680,099 $29,627 2025 210 $11,273,620 $40,680,099 $29,627 2026 210 $11,273,620 $40,680,099 $29,627 2027 210 $11,273,620 $40,680,099 $29,627 2028 210 $11,273,620 $40,680,099 $29,627 2029 210 $11,273,620 $40,680,099 $29,627 2030 210 $11,273,620 $40,680,099 $29,627 2031 210 $11,273,620 $40,680,099 $29,627 2032 210 $11,273,620 $40,680,099 $29,627 2033 210 $11,273,620 $40,680,099 $152,931 Total 210 $112,736,200 $406,800,990 $419,572 Year Jobs Personal Income Output Revenues 2024 510 $26,873,620 $106,310,277 $723,814 2025 510 $26,873,620 $106,310,277 $180,019 2026 510 $26,873,620 $106,310,277 $180,019 2027 510 $26,873,620 $106,310,277 $180,019 2028 510 $26,873,620 $106,310,277 $180,019 2029 510 $26,873,620 $106,310,277 $180,019 2030 510 $26,873,620 $106,310,277 $180,019 2031 510 $26,873,620 $106,310,277 $180,019 2032 510 $26,873,620 $106,310,277 $180,019 2033 510 $26,873,620 $106,310,277 $303,323 Total 510 $268,736,200 $1,063,102,770 $2,467,287 Indirect Revenue and Economic Impact Total Revenue and Economic Impact 3 IMPACT ANALYSIS Property Tax Analysis IMPACT ANALYSIS 4 Year Property Taxes Total Business Residential 2024 $76,105 $68,974 $7,131 2025 $76,105 $68,974 $7,131 2026 $76,105 $68,974 $7,131 2027 $76,105 $68,974 $7,131 2028 $76,105 $68,974 $7,131 2029 $76,105 $68,974 $7,131 2030 $76,105 $68,974 $7,131 2031 $76,105 $68,974 $7,131 2032 $76,105 $68,974 $7,131 2033 $76,105 $68,974 $7,131 Total $761,050 $689,740 $71,310 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. IMPACT ANALYSIS Impact Analysis 5 Greater Phoenix Greater Together 602.256.7700 /// gpec.org