Yorba
Linda's fiscal managers have long believed that updating the Savi
Ranch shopping area with more retail and better mobility could add
significant dollars to city coffers, especially from sales tax
revenue.
And now,
a lengthy report from a city-hired consultant has provided the data
to support that sentiment, with findings recently
presented to the city's elected leadership.
Currently,
Savi Ranch businesses contribute about 60 percent of Yorba Linda's
sales tax income, but the dollar amount collected from non-residents
who shop at the center could increase close to $800,000 yearly, under
one of three suggested land-use alternatives.
The
city's net revenue from Savi Ranch now stands at nearly $1.7 million
per year in sales, property and transient occupancy taxes. The
proposals could add $209,000, $424,000 or $791,000 to the total by
adding 225,000, 432,000 or 1,067,000 building square feet at the
158-acre site.
Importantly,
the report distinguishes between Savi Ranch's “net fiscal benefit”
of almost $1.7 million and “total fiscal impact” of $3.15 million
each year for the city. The former is sales tax paid by
non-residents, while the latter includes dollars paid by city
residents.
The
consultant noted that “retail businesses do not generate sales tax
revenue, they only collect it. It is households that actually pay
retail sales tax.”
Each
household generates about $118 per year in sales tax revenue for the
city (one percent of each taxable dollar spent), while city
expenditures for residents exceed revenues generated by residents by
just 0.19 percent, so the city's “net revenue” from Savi Ranch
sales taxes approaches the $1.7 million paid by non-residents.
The
largest fiscal benefit comes from retail uses at $1.99 per building
square foot, followed by commercial (hotels) at 85 cents, industrial
at 49 cents and office at 43 cents. Single- and multi-family
housing has a zero net impact, the report stated.
One of
three alternatives presented, “district enhancement,” reinforces
existing uses, while shifting the retail environment to increase
experience-oriented shopping by adding 225,000 square feet and 123
housing units.
The
second, “cluster expansion,” proposes specific land-use clusters,
including a bio-technology and research/development hub, by adding
432,000 square feet and 390 housing units.
A third,
“regional destination,” sees a major employment center by adding
about 1.1 million square feet of office, hotel, retail and mixed-use
(live/work) clusters, with 655 housing units.
The
latter two alternatives, if implemented, would need the City Council
to act on changes in zoning subareas, parking standards and building
setbacks, which, if modified, could allow up to 1.4 million square
feet of additional building space.
The
study is financed by a $240,000 grant from the state Department of
Transportation, with a $24,000 city match for expenses and staff
time.