HomeMy WebLinkAboutFiscal Impact Anlysis Report Regarding Potential Annxation of Areas North of I-10* Continued to a date uncertain for further ongoing
review of the matter as it relates to future
planning activities in the City. 4-0 (Harnik ABSENT)
CITY OF PALM D
DEPARTMENT OF COMMUNI
STAFF REPORT
E�FJT
REQUEST: THAT THE CITY COUNCIL RECEIVE AND FILE DOCUMENTS
PERTAINING TO THE POTENTIAL FISCAL IMPACT OF
ANNEXATION OF AREAS NORTH OF THE INTERSTATE 10, AND
PROVIDE STAFF DIRECTION CONCERNING PROCEEDING ON
THIS MATTER
SUBMITTED BY: Lauri Aylaian, Director of Community Development
DATE: March 8, 2012
CONTENTS: 1. Technical Addendum to Fiscal Impact Analysis for Potential
Annexation to the City of Palm Desert, dated February 8, 2012
2. Memorandum from Terra Nova Planning & Research regarding
Clarification of Gas Tax and Measure A Revenues, dated
February 21, 2012
3. Memorandum from Director of Public Works regarding Capital
Improvements Needs in the Sun City Area, dated February 15,
2012
Recommendation
By minute motion: That the City Council direct staff regarding further
actions to take, if any, concerning annexation of areas north of Interstate
10.
Background
This report provides supplemental information to the Fiscal Impact Analysis for Potential
Annexation to the City of Palm Desert, which was presented to the City Council at its
January 26, 2012, meeting. In particular, a technical addendum that corrects for an
invalid land use assumption is provided, as is a memorandum explaining the
computation of Highway Users Gas Tax and Measure A Fund revenues. Additionally,
the Director of Public Works has provided an order -of -magnitude estimate of the capital
cost for filling existing infrastructure needs in the study areas. This information is not
generally included in a fiscal impact analysis, since the goal of such analyses is to
determine the financial viability of an area once it has been fully developed and the
infrastructure is complete. Nonetheless, it is useful information for a complete picture of
the financial impact that annexation would have on the City of Palm Desert.
Staff Report
Potential Annexation Fiscal Impact Analysis
March 8, 2012
Page 2 of 2
The information produced during the study demonstrates that neither area (described as
Scenarios A and B in the analysis) north of Interstate 10 is financially viable under the
conditions analyzed, and that annexation would pose a burden on the General Fund.
More particularly, at build -out the annual costs would exceed annual revenues as
follows:
Scenario A (Sun City and area south of Avenue 38): -$5.5 million/year
Scenario B (Scenario A plus Classic Club and Xavier Prep area): -$3.4 million/year
While one-time costs and revenues would be as follows:
Scenario k $22 million cost for meeting existing infrastructure needs
$10.2 million total revenue from Developer Impact Fees through build out
Scenario B: $44 million cost for meeting existing infrastructure needs
$18.9 million total revenue from Developer Impact Fees through build out
If required by the Local Agency Formation Commission (LAFCO), inclusion of Bermuda
Dunes in these analyses would further diminish the financial viabilities of any proposed
annexation.
Fiscal Analysis
There is no fiscal impact with this request. If further study is directed by the City Council,
additional appropriations will be required for consultants.
Submitted By:i
Lauri Aylaian, Community Development Director
Department
rd (�
Paul S. i n. Dire or of Finance
Approval:
M. Wohlmuth, City Manager
gAplanninglauri aylaian\sphere of influence and annexation\sun city annexation fiscal impact analysis 3-8-12.docx
TECHNICAL ADDENDUM
TO
FISCAL IMPACT ANALYSIS FOR
POTENTIAL ANNEXATION
TO THE CITY OF PALM DESERT
Prepared for
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
Prepared by
Terra Nova Planning & Research, Inc.
42635 Melanie Place, Ste. 101
Palm Desert, CA 92211
February 8, 2012
TN/City of Palm Desert
Tech. Addendum/Potential Annexation
TECHNICAL ADDENDUM
TO
FISCAL IMPACT ANALYSIS FOR
POTENTIAL ANNEXATION
TO THE CITY OF PALM DESERT
I. PURPOSE
This Technical Addendum is being prepared to address changes to the original "Fiscal Impact
Analysis for Potential Annexation to the City of Palm Desert," which was submitted to the City
of Palm Desert in January 2012.
Specific Plan 151 (SP-151), which is located in Scenario B under consideration for annexation,
has been revised; the revised plan is referred to as Specific Plan 343 (SP-343), "NorthStar." Like
SP-151, SP-343 is centered around the existing golf course (The Classic Club) and clubhouse,
and it continues to allow for commercial and office/business park development. Revisions
include the provision of single- and multi -family dwelling units, including timeshares, and light
industrial uses. The revised plan also allows for a modest increase in hotel development, and
requires the existing gravel/construction site to be removed for future development. Please refer
to Exhibit 1 for the SP-343 Conceptual Land Use Plan.
II. REVISIONS
Land use tables for Scenario B have been revised, as shown below, to remove SP-151 and
replace it with SP-343. Table 1 describes developed acreage in Scenario B, and Table 2 describes
vacant acreage.
2
TN/City of Palm Desert
Tech. Addendum/Potential Annexation
Table 1
Scenario B - Developed Acreage
(Revised to Reflect SP-343)
Existing
Existing
Existing
Dwelling
Square
Hotel
Existing
Land Use Designation
Acreage
Units'
Footage
Rooms
Population
Inside Scenario A:
SP-281 Single -Family Residential
792.0
4,985 SF
--
--
9,000
SP-281 Golf Course
435.3
--
--
--
--
SP-281 Commercial
29.0
--
277,912
--
--
SP-281 Commercial (Hotel)
2.2
--
50,0004
72
--
Riv. Co. Commercial Retail
21.1
--
202,205
--
--
Riv. Co. Commercial (Hotel)
1.4
--
40'0004
82
--
Riv. Co. Comm./Tourist (RV Park)
26.3
--
--
--
--
Riv. Co. Industrial - Light
56.6
--
542,409
--
--
SP-281 Fire Station
3.5
--
--
--
--
I-10 Corridor
79.2
--
--
--
--
Railroad Corridor
38.8
--
--
--
--
Outside Scenario A:
Single -Family Residential
1.3
1 SF
--
--
2
SP-343 Golf Course/Facilities
245.9
--
--
--
--
SP-225 Private School
96.0
--
--
--
--
SP-225 RV Storage
5.2
--
--
--
--
Agriculture
9.3
--
--
--
--
I-10 Corridor
52.8
--
--
--
--
Railroad Corridor
34.1
--
--
--
--
Total: 1,930.0 4,986 1,112,526 154 9,002
Includes 4,869 detached and 116 attached units in Sun City, and one detached unit outside Sun City. SF = single-family
dwelling unit.
Assumes commercial and industrial buildings cover 22% of the lot, with the remaining area available for access roads,
parking, landscaping, and other ancillary uses.
3 Includes an estimated 9,000 residents in Sun City (provided by Paul Brady, Sun City Community Assoc., Oct. 2011), and
one additional dwelling unit at 2.08 persons/household (2010 U.S. Census).
4 Estimate for 72-room and 82-room hotels.
TN/City of Palm Desert
Tech. Addendum/Potential Annexation
Table 2
Scenario B - Vacant Acreage
(Revised to Reflect SP-343)
Potential
Potential Potential
Dwelling
Square Hotel
Potential
Land Use Designation
Acreage Units'
Footage2 Rooms
Population
Non -Developable
Inside Scenario A:
SP-281 Community Association
271.0 --
-- --
__
Public Utility (I113, CVWD)
18.1 --
-- --
__
Public Agency (County, State)
5.3 --
-- --
__
Riv. Co. Open Space/Water
10.4
Mirasera Open Space/Parks/Roads
39.5
Outside Scenario A:
SP-225 Regional Circulation
6.4 --
-- --
__
Non -Developable Subtotal:
350.7
Developable
Inside Scenario A:
PD Medium Density Residential (4-10 du/ac)
113.3 963 SF
-- --
2,003
Riv. Co. Medium -High Density Resid.(5-8
30.8 209 SF
-- --
434
du/ac)
Mirasera High Density Residential (12 du/ac)
22.6 230 SF
-- --
478
Mirasera Mixed Use Residential (16 du/ac)
10.5 142 NW
-- --
295
Mirasera Very High Density Resid. (20-25
66.4 1,411NM
-- --
2,934
du/ac)
SP-281 Commercial
3.0 --
28,750 --
--
PD Community Commercial
10.7 --
102,540 --
--
PD Industrial - Business Park
28.0 --
2689330 --
--
PD Industrial - Light
26.6 --
254,913 --
--
Mirasera Commercial Retail
17.6 --
168,664 --
--
Mirasera Mixed Use Hotel
3.1 --
100,000 150
--
Mirasera Office/Business Park
18.8 --
180,164 --
--
Outside Scenario A:
PD Low Density Residential (0-4 du/ac)
72.0 244 SF
-- --
507
SP-343 Deluxe Golf -View Hotel
17.6 --
350,000 350
--
SP-343 Resort Golf -View Villas (7.4 du/ac)
7.3 46 SF
-- --
96
SP-343 Resort Timeshares (21.7 du/ac)
10.0 184 MF
-- --
383
SP-343 Golf -View Condos (16.6 du/ac)
33.2 468 MF
-- --
973
SP-343 MixedUse Retail Village (4.14 du/ac)
36.2 127 MF
346,912 --
264
SP-343 Industrial Park
69.6 --
666,991 --
--
SP-343 Executive Office
16.0 --
153,331 --
--
SP-343 Community Commercial
20.0 --
100,000 --
--
SP-225 Medium -Density Residential (8 du/ac)
9.0 61 SF
-- --
126
SP-225 Golf Course
13.6 --
-- --
__
SP-225 Commercial
26.1 --
250,121 --
--
SP-225 Business Park
41.0 --
392,911 --
--
Developable Subtotal:
723.0
Total:
1073.7 4,085
3,363,627 500
8,493
Assumes future residential development will occur at
85% of the maximum density permitted. SF = single-family dwelling
unit. MF = multi -family dwelling unit.
Assumes future building square footage will cover 22%
of the lot, with the remainder of the lot available for access roads,
parking, landscaping, and other ancillary uses. Exception is SP-343 Community Commercial, where the Specific
Plan calls for
a maximum of 100,000 sq. ft. at build out, which is less
than 22% lot coverage. Hotel
square footage is estimated for one 150-
room highway -serving hotel in Mirasera, and one 350-room resort hotel in SP-343.
3 Based on Palm Desert average of 2.08 persons/household (2010 U.S. Census).
2
TN/City of Palm Desert
Tech. Addendum/Potential Annexation
III. BUILDOUT COMPARISON
The following table compares build out of vacant acreage in SP-151, as described in the original
report, and build out of vacant land in SP-343.
Table 3
Build out Comparison by Land Use Category
SP-151 and SP-343
Land Use Category
SP-151
SP-343
Difference
Hotel Facilities
250 rooms
350 rooms
+100 rooms
200,000 sq.ft.
350,000 sq.ft.
+150,000 sq.ft.
Resort Golf -View Villas
0
46 SF du's
+46 SF du's
Resort Timeshare Units
0
184 MF du's
+184 MF du's
Golf -View Condos 0 468 MF du's +468 MF du's
MixedUse Retail Village - residential
0
127 MF du's
+127 MF du's
- commercial
0
346,912 sq. ft.
+346,912 sq. ft.
Industrial Park
0
666,991 sq. ft.
+666,991 sq.ft.
Executive Office/Business Park
987,070 sq.ft.
153,331 sq.ft.
-833,739 sq.ft.
Community/Service Commercial
295,162 sq.ft.
100,000 sq.ft.
-195,162 sq.ft.
SF du = single-family dwelling unit; MF du = multi -family dwelling unit
Build Out Assumptions
Build out values have been calculated using the same methods and assumptions as those used in
the original fiscal analysis. For residential land uses, it is projected that the number of dwelling
units at build out will be 85% of the maximum permitted density (= # acres x maximum
du's/acre x 85%). Dwelling units in SP-343 were determined to be single-family or multi -family
based on descriptions provided in the NorthStar Specific Plan.
For commercial, office/business park, and industrial land uses, it is projected that future building
square footage will be equivalent to 22% lot coverage (= # acres x 43,560 sq.ft./acre x 22%).
This level of building coverage is typical of traditional single -story development in the region;
remaining lot square footage is necessary to meet local parking and landscaping requirements.
This methodology was used in the original fiscal analysis, and it is duplicated here. An exception
occurs in the SP-343 Community Commercial category, where the Specific Plan projects less
than 22% lot coverage, for a maximum build out of 100,000 square feet.
Based on the SP-343 Conceptual Land Use Plan, this revised analysis estimates that build out of
SP-343 will add 3.0 more paved roadway miles to Scenario B.
Build out Dwelling Units and Population
As shown in Tables 3 and 4, build out of SP-343 is projected to result in the development of 825
more dwelling units than SP-151. With an average household size of 2.08 persons per household
in Palm Desert, this equates to a population of 1,716 more residents than that projected in the
original fiscal study. Should annexation of Scenario B occur, a total potential Scenario B
population of 17,495 would be added to the City's existing population.
5
TN/City of Palm Desert
Tech. Addendum/Potential Annexation
Table 4
Comparison of Dwelling Units & Population
SP-151 and SP-343
At Build out
SP-151
SP-343
Difference
No. of Dwelling Units
0
825
+825
Potential Population in Specific Plan Area
0
1,716
+1,716
Potential Population in All of Scenario B
15,779
17,495
+1,716
Population projections are based on average 2.08 persons/household in City of Palm Desert, U.S. Census, 2010
IV. TIMESHARES
In the City of Palm Desert, the revenue stream from timeshares can vary widely from one project
to another. Transient Occupancy Tax (TOT) is collected on timeshare units that are rented for
less than 30 days; TOT is 9% of the rental rate. In addition, if the proposed timeshare project
does not include a golf course and hotel with 500 or more rooms, the City negotiates with the
developer to collect one-time development fees and recurring annual fees based on the number of
units being developed.
SP-343 designates 9.95 acres for Resort Timeshare development, at a density of 21.7 dwelling
units per acre. Assuming build out will occur at 85% of the maximum permitted density, 184
units could be constructed. The Specific Plan also includes an existing golf course (The Classic
Club) and proposes a 350-room resort hotel. Therefore, the timeshare portion of the project will
generate revenues from TOT, one-time fees at the time the project is constructed, and recurring
annual fees.
The fiscal model has been revised to include future revenues from timeshare development in SP-
343 using per unit estimates provided by the City's Finance and Community Development
Departments. Based on other timeshare development in the City, TOT revenue of $600/unit/year,
one-time development fees of $750/unit, and recurring annual fees of $1,500/unit/year are used
in this analysis. Build out of the Specific Plan area is assumed to occur evenly over a 20-year
period, with costs and revenues shown in 5-year increments.
V. COST/REVENUE COMPARISON
Potential costs and revenues to the City of Palm Desert resulting from annexation of Scenario B
were projected in the original report. Using the same fiscal model, they have been revised to
delete the SP-151 build out scenario, and replace it with the SP-343 build out scenario. Tables 5
and 6 show potential costs and revenues, as revised to reflect SP-343.
Compared to the original analysis, build out of SP-343 is projected to result in modest increases
in all revenue categories analyzed. At the end of the 20-year buildout period, total revenues are
projected to be $11.3 million/year, which represents an increase of 14.8% over that shown in the
original report. This is largely the result of adding dwelling units, population, and hotel rooms to
n
TN/City of Palm Desert
Tech. Addendum/Potential Annexation
the Specific Plan area, and including sales tax generated by the existing clubhouse at The Classic
Club, as well as potential revenues generated by future timeshares.
One-time revenues generated by Developer Impact Fees (DIF) are also projected to increase
modestly due to more construction in the Specific Plan area and one-time timeshare development
fees. Potential DIF revenues are projected to be $4.7 million at build out of each phase during the
20-year build out period. This represents an 8.5% increase over DIF revenues shown in the
original analysis.
Given the potential of SP-343 to develop 825 more dwelling units and accommodate 1,716 more
residents than SP-151, the costs to the City for providing public services to the area will also
increase. Costs include those required for general government operations, roadway maintenance,
and the provision of emergency services. Annual costs at the end of the 20-year build out period
are projected to be $14.7 million/annually. This represents an increase of 11.4% over the original
report.
After replacing SP-151 with SP-343, potential cash flow to the City at 20-year build out is
projected to be a deficit of -$3.4 million/year. This is 1% more than that anticipated in the
original fiscal analysis and is largely due to the costs of providing public services to an increased
build out population.
7
TN/City of Palm Desert
Tech. Addendum/Potential Annexation
Table 5
Total Potential Costs/Revenues Summary Table
Annexation Scenario B (revised to include SP-343)
Build out Phase
Phase I
(Yrs 1-5)
Phase II
(Yrs 6-10)
Phase III
(Yrs 11-15)
Phase IV
(Yrs 16-20)
ANNUAL REVENUES
General Fund:
Property Tax
$828,051
$915,581
$1,003,111
$1,092,730
Property Transfer Tax
$99,321
$100,819
$102,317
$103,815
Sales Tax
$2,351,230
$3,082,812
$3 814,394
$4,545,977
Transient Occupancy Tax (from hotels/motels)
$699,401
$1,086,415
$1,473,429
$1,860,443
Transient Occupancy Tax (from timeshares)
$27,600
$55,200
$82,800
$110,400
Annual Timeshare Fees
$69,000
$138,000
$207,000
$276,000
Motor Vehicle In -Lieu Revenue
$35,720
$42,544
$49,368
$56,192
Total Annual General Fund Revenue at Phase Build out:
$4,110,323
$5,421,371
$6,732,419
$8,045,557
Restricted Funds:
Highway Users Gas Tax
$260,057
$309,737
$359,417
$409,097
Measure A Funds
$19,750
$25,896
$32,041
$38,186
Prop. A Fire Tax
$362,310
$417,360
$472,410
$527,460
Structural Fire Tax
$1,390,525
$1,537,325
$1,684,125
$1,834,430
Total Annual Restricted Fund Revenue at Phase Build out:
$2,032,642
$2,290,318
$2,547,993
$2,809,174
Totals:
Total Annual Revenues at Phase Build out:
$6,142,965
$7,711,689
$9,280,412
$10,854,731
Historic Average Interest Rate, 90-day Treasury Bill:
4.39%
4.39%
4.39%
4.39%
Anticipated Interest on Revenues:
$269,676
$338,543
$4.07,410
$476,523
Total Annual Revenues with Interest at Phase Build out:
$6 412 641
$8 050 232
$9 687 822
$11 31253
ANNUAL COSTS
General Fund:
General Government
$3,152,797
$3,759,641
$4,366,485
$4,973,329
Police Protection
$3,847,211
$4,605,243
$5,363,275
$6,121,307
Roadway Maintenance
$508,143
$587,731
$667,327
$746,916
Total Annual General Fund Costs at Phase Build out:
$7,508,151
$8,952,616
$10,397,087
$11,841,553
Restricted Funds:
Fire Protection
$1,615,994
$1,731,582
$1,847,171
$1,962,759
Ambulance Services
$940,944'
$940,944'
$940,944'
$940,944'
Total Annual Restricted Fund Costs at Phase Build out:
$2,556,938
$2,672,526
$2,788,115
$2,903,703
Totals:
Total Annual Costs at Phase Build out:
$10,065,089
$11,625,142
$13,185,202
$14,745,256
Projected Annual Cashflow at Phase Build out:
-$3,652,448
-$3,574,910
-$3,497,379
-$3,414,002
1 Does not include one-time (year 1) start-up ambulance costs of $190,000.
TN/City of Palm Desert
Tech. Addendum/Potential Annexation
Table 6
Developer Impact Fee Revenues (One time only)'
Annexation Scenario B
(revised to include SP-343)
Build out
Phase
Phase I
(Yrs 1-5)
Phase II
(Yrs 6-10)
Phase III
(Yrs 11-15)
Phase IV
(Yrs 16-20)
New Construction Tax
$949,113
$949,113
$949,113
$949,113
Art in Public Places Fund
$698,162
$698,162
$698,162
$698,162
Low Income Housing Mitigation Fee
$560,396
$560,396
$560,396
$560,396
Child Care Program Fund
$705,257
$705,257
$705,257
$705,257
Traffic Signals Fund
$243,961
$243,961
$243,961
$243,961
Planned Drainage Fund
$180,750
$180,750
$180,750
$180,750
Parks & Recreation Facilities Fund
$1,353,736
$1,353,736
$1,353,736
$1,353,736
Timeshare Development Fees
$34,500
$34,500
$34,500
$34,500
Total Developer Impact Fee Revenues
at Phase Build out:
$4 725,875
$4,725,875
$4,725,875
$4,725,875
1 Developer impact fees occur only once, at the time the unit is permitted.
0
r- I
�- -A TERRA NOVA PLANNING & RESEARCH INC,'�,'�
MEMORANDUM
TO: Lauri Aylaian, Community Development Director, City of Palm Desert
FROM: Andrea Randall
DATE: February 21, 2012
RE: Clarification of Gas Tax and Measure A Revenues
Described in the Potential Annexation Fiscal Impact Analysis
Terra Nova has been asked to provide clarification about projected revenues from the Highway User Gas
Tax and Measure A Fund, as they pertain to potential annexation of land north of Interstate-10.
Descriptions of these calculations are provided below.
I I i&,IlNvay tbj� Gas 14N
I lighway User taxes are derived from state taxes on the sale of motor vehicle fuels. Revenues from the
gas tax arc deposited into the State's Highway Users Tax account and apportioned by the State Controller
to cities and counties on a monthly basis. Apportionments are restricted for the construction, maintenance,
and operation of local streets and roads.
To project potential future City gas tax apportionments resulting from buildout of the two annexation
areas (Scenario A and Scenario B), the fiscal impact model uses data from the State Controller's office.
The Controller's records, which are available online, indicate that $1,216,771.71 was apportioned to the
City of Palm Desert between July 2010 and June 20 ],.1 (the last complete fiscal year available). For other
apportionment calculations, the State assumes a population of 52,067 for the City of Palm Desert; this
Population figure was used to determine a per capita factor for gas tax revenues.
$1,216,771.71/year — 52,067 persons = $23.37/capita/year
This per capita factor is applied to the projected buildout population of each annexation area. Buildout of
Scenario A is projected to result ina buildout population of 15,144, which translates to potential Highway
User gas tax revenues of $353,915 by the end of the 10-year buildout period. Under Scenario B, the
buildout population, as modified to include SP-343, is projected to be 17,495, which translates to
$408,859 in Highway User gas tax. revenues. (Projected revenues shown in the fiscal analysis are slightly
I ZD
higher due to rounding in the fiscal model.)
Page I of 2
42635 MELANIE PLACE, SUITE 101 El PALM DESERT CA 92211 El (760) 341-4800 [-.1 FAX (760) 341-4455
Measure A Funds
A portion (0.50%) of taxable sales in Riverside County is contributed to the Measure A fund; this is
collected as part of the County's 8.75% sales tax. Measure A revenues are restricted for the purpose of
funding regional and local transportation projects. It is important to note that the City of Palm Desert
receives only a limited portion of total Measure A revenues. According to the Riverside County
Transportation Commission, revenues are distributed on a regional basis and trickle -down to the City, as
shown below. The end result is that the City's Measure A revenues are approximately 0.0084% of total
taxable sales.
8.75% Riverside County sales tax
W
0.50% of taxable sales
goes to county -wide Measure A Fund
24% of county -wide Measure A Fund
goes to the Coachella Valley region
I
35% of Coachella Valley revenues
funds local streets and roads projects
1
20% of local streets and roads project revenues
goes to the City of Palm Desert
To project potential future Measure A revenues resulting from buildout of the two annexation scenarios
(Scenario A and Scenario B), the fiscal model first projects future taxable sales. All commercial
development is assumed to generate taxable sales. Taxable sales are determined using the acreage
designated for commercial land uses, and the following assumptions: 1) commercial building square
footage is 22% of total commercial. acreage, 2) 90% of commercial square footage is leasable space that is
capable of generating taxable sales, and 3) commercial development in the annexation areas is
"Neighborhood Commercial," which generates an average annual sales volume of $326.13 per square
foot (sources are provided in the fiscal impact analysis). These data are used to project total taxable sales
in the annexation areas. The fiscal model then applies the percentages shown in the flow -chart above to
project Measure A revenues collected by the City of Palm Desert.
Page 2 of 2
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
INTEROFFICE MEMORANDUM
To: John Wohlmuth, City Manager
From: Mark Greenwood, P.E., Director of Public Works
Date: February 15, 2012
Subject: Capital Improvement Needs Fiscal Analysis for the Proposed Sun
City Annexation
At your request, I have conducted a cursory evaluation of capital improvement needs
within the proposed Sun City annexation area. Since it is impossible to accurately
estimate the ultimate cost of improvements without in-depth analysis, the following
figures should be considered as estimates of the magnitude of potential costs. A much
more detailed analysis will be needed to produce budget -level cost estimates.
IMPROVEMENT TYPE
QUANTITY
UNIT COST
TOTAL COST
STREETS
Arterials Only)
1,400,000 SF
$20
$28,000,000
SIGNALS
5
$300,000
$1,500,000
STORM DRAINS
Backbone on/
30,000 LF
$400
$12,000,000
RETENTION BASINS
5 acres
$500,000
$2,500,000
GRAND TOTAL
$44,000,000
The above analysis does not include amenities such as parks and recreation facilities,
street lighting, etc., which would be at significant additional cost.
This analysis is for Scenario B which is the largest alternative under consideration.
ImprovepeAts, and costs jar Area A only, are roughly half of the amount shown above.
Dire or f Public Wo
Cc: La6ri Aylaian, Director of Community Development
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