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REV: 12-20-23 VR <br />Sea level rise improvements: The applicant’s valuation will be reviewed by <br />Strategic Economics in relation to average per-mile costs for shoreline <br />improvements. OneShoreline may be consulted to determine appropriate cost <br />assumptions. <br />Utilities improvements: If the applicant is proposing improvements beyond the <br />required impact fees/CIPs, Schaaf and Wheeler will compare the estimated total <br />value of the applicant’s improvements to the baseline City infrastructure <br />requirements. <br />As part of this analysis, Strategic Economics will conduct market research and interviews <br />with local developers (including the applicant) to establish any necessary rent/valuation <br />assumptions and will conduct research and interviews with developers and City staff to <br />establish appropriate construction cost assumptions (depending on the type of <br />improvement being analyzed). <br />Strategic Economics will also build a pro forma model that will test the financial feasibility <br />of up to two development scenarios (provided by Consultant) to determine the financial <br />capacity of future development to support community benefits. The pro forma model will <br />be populated with up-to-date inputs including current market values, development costs, <br />and rates of return. Strategic Economics will determine the financial feasibility of the <br />project and measure the residual value of the project after accounting for all development <br />costs. Sensitive portions of this analysis will be kept confidential. The feasibility analysis <br />will provide a basis for comparing the applicant’s proposed community benefits against <br />the financial potential of the project to support community benefits contributions. Since <br />buildout of the area will occur during a long-time horizon, the analysis will include a <br />sensitivity analysis to gauge the potential range of values for supportable community <br />benefits contributions. <br />Task 7.2: Fiscal Impact Analysis <br />Strategic Economics will build a fiscal model to estimate the net fiscal impact of <br />development of up to two growth scenarios on the City of Redwood City’s General Fund. <br />The model will estimate the potential operating revenues and expenditures resulting from <br />projected final buildout of the area. Strategic Economics will analyze the property tax, <br />sales tax, transient-occupancy tax, and other major sources of General Fund revenues <br />generated by the alternatives. Based on interviews with key City departments, Strategic <br />Economics will calculate the increase in General Fund expenditures for providing services <br />to the new service population under each scenario. Based on the results of the fiscal <br />assessment, Strategic Economics will determine whether the estimated public revenues <br />would offset increases in the cost of public services to serve new development. <br />Task 7.3 Wet Utility Infrastructure Estimating <br />Subconsultant Schaaf & Wheeler will provide engineering support services to Consultant <br />for the Precise Plan Area as it relates to wet utility infrastructure improvement costs. <br />Consultant and its engineers will base the cost analysis on previously published capital <br />improvement recommendations and cost estimates, assumed to be available from the <br />ATTY/AGR.2023.318/Raimi + Associates (Redwood Life Precise Plan) (Page 25 of 45)