Aggie Research Campus Economic Analysis- Fiscal and Economic Impacts Report (April 29, 2020)
FOR IMMEDIATE RELEASE
CITY OF DAVIS RELEASES AGGIE RESEARCH CAMPUS FEASIBILITY STUDY/ECONOMIC AND FISCAL ANALYSIS
April 29, 2020 - The City of Davis announced today that is has released the Pro Forma, Fiscal and Economic Impact Analysis report on Aggie Research Campus (ARC) formerly known as Mace Ranch Innovation Center (MRIC).
Under contract with the City of Davis and funded through application deposits, Economic & Planning Systems, Inc. (EPS) performed an economic and fiscal analysis of the proposed project. The analysis builds off the previously completed analysis for MRIC Project, which was created by EPS in 2015.
The analysis is available below:
The ARC proposal is located on a 185-acre site immediately east of the City of Davis along the Mace Blvd. curve in Yolo County. Buzz Oates, Reynolds & Brown and Ramco Enterprises have an application on file with the City and are in the process of pursuing land use entitlements and an annexation into the City of Davis.
The ARC proposal features a mix of office, research and development, laboratory, prototyping, advanced manufacturing, supporting retail, a hotel, recreation, open space and housing. At buildout, the ARC would include up to 2,654,000 square feet of innovations center/business uses and 850 residential units of varied sizes and affordability.
The ARC economic impact analysis estimates the effect that the activity associated with the project would have on Yolo County and the local Davis economy. The ARC project is forecasted to produce 5,000 new jobs with employee compensation of $500 million at project buildout. The City of Davis and Yolo County would experience economic spinoff from the onsite employment as businesses elsewhere in the County respond to the ongoing business, employee and household spending generated by the project.
The fiscal impact analysis estimates the net impact to the City of Davis General Fund at project buildout. Annual general fund revenues at buildout are estimated to be $7.3 million and non-general fund revenues are estimated to be $673,000 for a total of approximately $8 million. Forecasted expenditures are estimated at $2.6 million, resulting in annual revenues net of cost to the City of approximately $5.4 million. Davis Joint Unified School District would collect $1.37 million annually in school assessments and bond levies.
Yolo County is forecasted to collect $691,000 in annual property taxes at buildout. The City of Davis over the total project would collect onetime fees of $113 million, including $77.5 million in roadway impact fees and $14.6 million in construction tax. Other agencies would collect one-time impact fees with Yolo County receiving $4.4 million and Davis Joint Unified School District receiving $4.3 million at buildout.
The ARC project has been presented to and reviewed by numerous city commissions, including meetings with the Open Space and Habitat Commission, the Social Services Commission, the Natural Resources Commission, the Bicycling, Transportation, and Street Safety Commission, the Finance and Budget Commission, the Recreation and Parks Commission, the Tree Commission and the Planning Commission. A draft Subsequent Environmental Impact Report (SEIR) has been prepared for the project with the public comment period closed on April 27, 2020.
The next step for the project includes a review of the EPS Fiscal and Economic Analysis by the Finance and Budget Commission on May 11, 2020. Following the Finance and Budget Commission review, land use application hearings will occur before the Planning Commission and the City Council. If the proposed project is approved by the City Council, the project would be placed on the November 2020 ballot as a Measure J/R proposal to be voted on by the citizens of Davis.
The proposal (originally known as MRIC) was submitted in response to the City’s Request for Expressions of Interest (RFEI). In 2008, the City Council began to evaluate the need for additional business park lands/facilities to accommodate the long-term, economic growth potential in the city. In response, the Business Park Land Strategy was prepared. The study determined that existing capacity was not sufficient to support long-term business needs and pointed to a need to annex additional contiguous lands to meet future needs. In 2010, the Innovation Park Task Force was formed to explore potential sites. STUDIO 30, UC Davis Extension and the Innovation Park Task Force prepared a study to identify potential sites for the innovation center. The Business Park Land Strategy, the STUDIO 30 report, and the work of the Innovation Park Task Force resulted in the City undertaking an RFEI process for innovation park proposals to accommodate the City’s long-term business needs. The MRIC application (now ARC) was submitted in September 2014 in response to the City’s RFEI process.
Community questions or comments may be emailed to email@example.com.
City Manager’s Office