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3.A. - Page 3 of 14 <br />be evaluated in this type of high-level analysis, such as displacement, loss of community amenities and <br />other non-financial impacts. <br />This analysis is not an economic analysis, which would look more broadly at the impact of land <br />development on the local economy. It is also not a fiscal impact analysis of a specific project and it does <br />not reflect market conditions such as land availability or private interest in certain types of development. <br />This analysis considers how development of certain land use types impact the City's operating costs and <br />revenues. Lastly, it is one lens for evaluating land use decisions. It is not intended to be a sole factor when <br />considering future land use decisions, which should consider other City policy objectives and priorities <br />including the City Council's top priorities of housing, transportation, and children and youth, and <br />foundational priority of equity. Additionally, decision -makers must be able to make all applicable land use <br />findings in order to support recommendation of a project. <br />ANALYSIS <br />EPS worked with City staff to incorporate input on the baseline assumptions to ensure that the analysis is <br />as accurate of a 'snapshot' as possible. To this end, staff and EPS have discussed and taken into <br />consideration changing patterns of retail demand and office occupancy, particularly in response to COVID- <br />19. In order to demonstrate the result of these changing patterns, the consultant has provided two models <br />for the analysis. The first model is based on the FY 2019-20 revised budget (also shown in the EPS <br />presentation as 'actual values'), which typically represents a 'normal' budget year pre-COVID-19. The <br />second model is based on the FY 2020-21 revised budget, which includes the financial implications of <br />COVID-19 into account, and could provide a more realistic view of General Fund implications over the next <br />2-5 years. <br />Major Findings <br />A summary of the major findings of the fiscal impact analysis are shown in Graph 1 and Graph 2 below. <br />Graph 1 shows the fiscal impact of new uses, while Graph 2 shows the fiscal impact of existing uses. The <br />analysis includes the total sources of revenue as well as all applicable General Fund expenditures for each <br />land use type per unit. The net impact to the General Fund is the total expenditures subtracted from the <br />total revenues and shows the overall impact of the land use type against the General Fund. It is important <br />to note that the net impact is shown as a per unit measurement, either per residential unit or per 1,000 <br />sq. ft. of nonresidential floor space. Land use types typically generate different density levels and, <br />therefore, it is important to take density into account when assessing overall net impact. For example, <br />while the graph indicates the net fiscal impact of a single-family residence is more positive than that of a <br />multifamily residence, it can be assumed that typically multi -family projects deliver a higher number of <br />overall units than single-family developments, as shown in Graph 3. EPS' analysis includes example <br />development scenarios to further illustrate this point and provide an overall understanding of the net <br />impact of a potential development scenario. <br />Page 3 of 8 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />5 <br />