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7/1. ~~ CB RICHARD ELLIS CONSULTING Sedway Group CBRE CB RICHARD ELLIS Mr. Larry Carr September 15, 2005 Page 10 match a more traditional office tenant, if allowable, with respect to local revenue generation and the associated support of local City services through revenues accruing to the General Fund. Select Stanford Hospital and Clinics Economic Impacts In addition to strong local government revenue generation, Stanford Hospital and Clinics will directly and indirectly make significant contributions to the economic base of Redwood City. This will occur as a result of the local spending of employees and patients' 1. By 2008, when the medical facility will be fully operational for an entire year, local retail spending attributable to the facility will total $2.7 million (see Exhibit 13), comprising the following 12: . $1.2 million in employee spending; and $1.4 million in patient expenditures (includes retail spending and estimated room revenue). . These expenditures will serve to expand the local economic base of Redwood City, supporting local businesses and in turn, local employment. Thus, not only will the government of Redwood City benefit from these expenditures because of their taxable retail sales generation potential (see preceding section), but so too will the locally-owned businesses of Redwood City. SUPPORTING DOCUMENTATION The analysis was conducted through a series of excel spreadsheets. These spreadsheets are attached as exhibits to this letter report, included in Appendix A. All exhibits are fully documented regarding type of assumption and source. The exhibit numbers and their contents are as follows: . Exhibit 1: Relevant building addresses and current (2004) building value and property tax payments. Exhibit 2: Tax rate assumptions relevant to the properties, including the local property tax rate, sales and use tax rate, and utility users' tax rate. . . Exhibit 3: General assumptions for the two comparative uses, including rate of inflation, municipal discount rate, stabilized occupancy, taxable sales generation, and utility rates. Exhibit 4: Estimate of Stanford Hospital and Clinics construction related costs that are subject to use tax. . . Exhibit 5: Estimates of Stanford Hospital and Clinics annual expenditures with out-of-state vendors that are taxable and subject to use tax, and associated use tax revenues generated for Redwood City. . Exhibit 6: Estimate of transient occupancy tax generated by Stanford Hospital and Clinics patients. Exhibits 7, 8 & 9: Comparative 20-year present value General Fund revenue analysis for the R&D tenant (Exhibit 7), traditional office tenant (Exhibit 8) and Stanford Hospital and Clinics (Exhibit 9). . 11 The analysis conservatively assumes no local Redwood City spending attributable to Stanford Hospital and Clinics expenditures. 12 May not total due to rounding.