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Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 57 <br />COST /BENEFIT ANALYSIS6 <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 />•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 />The multiplier effects estimated in this analysis include: <br />The graphic to the right illustrates key <br />measurements of economic and tax impacts utilized <br />in this analysis.Commencing with the estimation of <br />net new direct spending associated with the Youth <br />and Amateur Sports Complex project,successive <br />rounds of re-spending generate indirect and induced <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 />DIRECT <br />SPENDING <br />Construction <br />In-Facility <br />Out-of-Facility <br />Business Services <br />Household Spending <br />Governmental <br />Other Sectors <br />Food & Merchandise <br />Transport Company <br />Manufacturers <br />Energy/Utilities <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).