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0 COST / BENEFIT ANALYSIS DRAFT COPY <br />The multiplier effects estimated in this analysis include: <br />• TOTAL OUTPUT represents the total direct, indirect and induced spending effects generated by the new Youth <br />and Amateur Sports Complex. Total output is calculated by multiplying the appropriate total output multiplier by <br />the estimated direct spending within each industry. <br />• PERSONAL INCOME (EARNINGS) represent the wages and salaries earned by employees of businesses <br />impacted by the new Youth and Amateur Sports Complex. Personal earnings are calculated by multiplying the <br />appropriate personal earnings multiplier by the estimated direct spending within each industry. <br />EMPLOYMENT is expressed in terms of total jobs and includes both full and part-time jobs. Employment is <br />calculated by dividing the appropriate employment multiplier by one million, and then multiplying by the <br />estimated direct spending within each industry. <br />In addition to the economic impacts that could be generated by the new Youth and Amateur Sports Complex, fiscal revenues <br />could be generated to Mounds View and various other municipal/governmental entities from a variety of sources. In preparing <br />estimates of fiscal impacts, revenues generated to Mounds View from direct, indirect and induced spending were examined. As <br />a focus of this analysis relates to the economic and tax impact within the Mounds View area, the primary fiscal revenues <br />estimated herein are sales and lodging taxes that are estimated to be generated within Mounds View. The net new tax impacts <br />consider reductions for assumed displaced spending within Mounds View, as well as spending that is assumed to occur outside <br />of Mounds View. <br />Although there may be other tax revenues and public sector fees/charges generated as a result of the construction and <br />operations of the new Youth and Amateur Sports Complex, net new food & beverage and innkeeper's taxes represent the most <br />directly -attributable and relevant sources relating to this analysis. <br />The graphic to the right illustrates key <br />measurements of economic and tax impacts utilized <br />INDIRECT <br />in this analysis. Commencing with the estimation of <br />SPENDING <br />net new direct spending associated with the Youth <br />Food & Merchandise <br />and Amateur Sports Complex project, successive <br />Transport Company <br />rounds of re -spending generate indirect and induced <br />p g generauce <br />Manufacturers <br />Energy/Utilities <br />effects. The sum of all this net new spending in <br />Mounds View's economy represents total economic <br />output. This new economic output, in turn, likewise <br />generates added earnings (personal income), jobs <br />(employment) and tax revenues. <br />In addition to the quantifiable benefits associated <br />with a new Youth and Amateur Sports Complex, <br />there are a number of existing and potential benefits <br />that cannot be quantified. In fact, these qualitative <br />benefits tend to be a critical factor in the <br />consideration of public and private investment in <br />facilities of this nature. These include issues <br />pertaining to quality of life, ancillary economic <br />development facilitation, employment opportunities, <br />community pride, complementing the greater project <br />site and other such items. <br />ECONOMIC <br />OUTPUT <br />Personal Income <br />Employment <br />Taxes <br />INDUCED <br />SPENDING <br />Business Services <br />Household Spending <br />Governmental <br />Other Sectors <br />DIRECT <br />SPENDING <br />Construction <br />In -Facility <br />Out -of -Facility <br />The quantitative impact figures do not include economic impact that could be generated by other greater project elements <br />associated with any larger mixed -use project and other ancillary private sector development/investment that may occur as result <br />of the Youth and Amateur Sports Complex development (i.e., hotels, restaurants, etc.). Some of the impacts associated with the <br />new Youth and Amateur Sports Complex would be quantitatively captured by these other developments and improvements, but <br />substantial additional economic impact could be generated by any new public or private investment that occurs at, or near, the <br />site. The net effect of a calculation of quantified economic impact could hypothetically be several times greater in magnitude <br />(depending on the level of investment and development outcomes that are ultimately realized at, or near, the site). <br />CSFeasibility Study of a Potential new Youth and Amateur Sports Complex in Mounds View, Minnesota • Page 57 <br />