Agmt09 Keyser Marston Associates, Inc

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above; 2) the proposed project concept; and 3) "opportunity cost" project concepts. Revenues upon full build-out of each concept will be estimated using 2009 dollars. The major revenues that we anticipate to quantify include the following: · City's share of annual property tax revenues; · City's share of property transfer taxes to be generated; · Property taxes in-lieu of motor vehicle fees; · City's share of sales and use taxes; · Business license revenues; · Impact fees and building permit fees (during construction); · Other applicable revenue sources, such as utility user fees, fines and forfeitures, etc. Each revenue source has its own basis, such as valuation or economic performance level, which is based on KMA's research and judgment about the development. KMA will estimate the City's property tax (secured and unsecured) and property tax in-lieu of motor vehicle fee revenues for the development based on estimated construction costs, finished values, and the current unsecured assessments for each of the types of development. The valuation estimates for the Stanford project will be based on information to be provided by the Stanford as well as other published sources. Assessor records will be used to obtain the amount of revenues currently generated by the property. Sales and Use tax revenues for the existing use will be based on empirical records. Estimates for the Stanford project will be generated based on the portion of the project to be developed with R&D uses, information to be provided by Stanford, and average sales and use tax generation factors for R&D use. As stated in the RFP, it will be important that the Redwood City property be cited at the place of sale in order for the sales and use taxes to accrue to the City of Redwood City. KMA has worked on other transactions where the place of sale designation was a critical issue and we can assist in suggesting language for the development agreement as well as structuring a monitoring program. The analysis will also include sales tax revenues generated by the day-time purchases of employees. Utility user taxes could also be a major revenue source to be generated by the Project. Using utility information from both the existing user as well as information from Stanford, KMA will estimate the magnitude of revenues that potentially be generated with and without the $50,000 cap on single payers. KMA will integrate impact fee and building permit fee revenue estimates to be provided by City staff. While these one-time revenues will be included in the analysis, it is important to note that the purpose of these revenues is to cover specific costs and expenses generated by the Project for infrastructure and processing costs. The companion costs will also be included, resulting in a net neutral impact. Keyser Marston Associates, Inc. \\Sf-fs1\wp\99\99900\900b-851 to 900\900b-865 Rev 3.1 O.09.doc Page 2 January 2009