Economic Impact Analysis of Delayed Military Base Reuse in California

Economic & Planning Systems Real Estate Economics Regional Economics Public Finance Land Use Policy

WHITE PAPER

ECONOMIC IMPACT ANALYSIS OF DELAYED MILITARY BASE REUSE IN CALIFORNIA

Prepared by:

Economic & Planning Systems, Inc.

January 2007 Update

EPS #17002

B E R K E L E Y S A C R A M E N T O D E N V E R 2501 Ninth St., Suite 200 Phone: 510-841-9190 Phone: 916-649-8010 Phone: 303-623-3557 Berkeley, CA 94710-2515 Fax: 510-841-9208 Fax: 916-649-2070 Fax: 303-623-9049 www.epsys.com

TABLE OF CONTENTS

I. INTRODUCTION AND SUMMARY OF FINDINGS...... 1 Summary of Findings...... 1

II. ECONOMIC IMPACT ANALYSIS OF DELAYED REUSE ...... 7 Economic Impact Analysis...... 8 Economic Development Impacts...... 9 Fiscal Impacts...... 10

III. REFERENCES ...... 12

APPENDICES Appendix A: Economic Impact Analysis of Alameda Naval Air Station Appendix B: Economic Impact Analysis of Fort Ord Military Installation Appendix C: Economic Impact Analysis of Hunter’s Point Naval Shipyard Appendix D: Economic Impact Analysis of Naval Station Treasure Island Appendix E: Economic Impact Analysis of George Air Force Base Appendix F: Economic Impact Analysis of McClellan Air Force Base

LIST OF FIGURES AND TABLES

Figure 1: California Major Military Base Closures...... 2

Table 1: Major Closure Decisions from Base Closure Rounds in 1988, 1991, 1993, 1995 and 2005 ...... 3

Table 2: Summary of Statewide Economic Impacts...... 5

I. INTRODUCTION AND SUMMARY OF FINDINGS

Economic & Planning Systems (EPS) these closed military bases in California was retained to evaluate the impacts of and estimates the economic impacts on delays in the reuse of closed military the California economy of delayed bases on the California economy. This redevelopment and reuse. report has been updated from the original February 2005 version to reflect major changes in military base disposition and reuse activity. While specific assumptions and actual annual results will vary with economic cycles, this report provides a long‐term indication and an estimate of impacts associated with delayed military closures. Former Hunter’s Point Naval Shipyard

The State of California has experienced more base closures than any other state SUMMARY OF FINDINGS in the country under the Base Realignment and Closures Act (BRAC) 1. The 25 major bases closed in of 1988, 1991, 1993, 1995, and 2005. The California over the last 18 years Department of Defense (DOD) closed 25 consisted of 86,000 acres of land, major military bases in California under and resulted in a total loss of the various rounds of BRAC with three approximately 46,700 civilian jobs additional bases scheduled to close and 82,600 military personnel (see during the next several years. The Table 1). The base closures also closures represent one‐third of the resulted in secondary economic California military base total and impacts on local communities approximately one‐fourth of the total including a loss of business activity, U.S. closures. These base closures have retail spending and tax revenues. resulted in significant civilian and The successful reuse of these bases military job losses and loss of economic presents one of the greatest urban productivity to the State. Figure 1 redevelopment and economic depicts a map of all major base closures development challenges faced by in California. California today. The closed bases

are currently at various stages in the For many reasons, a number of closed reuse process. bases have not been redeveloped in

accordance with the reuse goals of the 2. There are 32,200 acres of major local communities. In some cases, the closed military bases that remain to DOD has yet to convey portions of the be conveyed in California. bases to the relevant Local Although interim uses and long‐ Redevelopment Authorities (LRAs). term lease opportunities have been This report documents the status of the found for some of the unconveyed property transfer and redevelopment of

1 P:\17000s\17002Base\Report\17002rpt.doc Figure 1: California Major Military Base Closures

Map_Num Facility Location

01 George Air Force Base Victorville  02 Norton Air Force Base San Bernadino 03 Fort Ord Marina 04 Hunter's Point Navel Facility San Francisco 05 Naval Electronic Systems Engineering San Diego 06 Mather Air Force Base Sacramento 07 Long Beach Naval Complex Long Beach 08 Naval Air Station Moffett Field Sunnyvale 09 Presidio of San Francisco San Francisco 10 Sacramento Army Depot Sacramento 11 Oakland Naval Supply Center Oakland 12 Castle Air Force Base Atwater 13 Oakland Army Base Oakland 14 Hamilton Army Air Field Novato 15 McClellan Air Force Base Sacramento 16 Oak Knoll Naval Hospital Oakland 17 Mare Island Naval Complex Vallejo 18 San Diego Training Center San Diego 19 Alameda Naval Complex Alameda 20 Treasure Island Naval Complex San Francisco 21 Pt. Molate Naval Fuel Depot Richmond 1515 22 Marine Corps Air Station El Toro Irvine 1010 23 Marine Corps Air Station Tustin Tustin 2121 0606 1414 1717 24 Ontario Intl Airport AGS Ontario 2020 25 Concord Naval Weapon Station Concord 20201313 2525 1111 0909 1616 1212 0404 1919 1212 0808

0303

0101

2424 0707 0202

2222

2323 2323 1818 0505

Economic & Planning Systems, Inc. 2 P:\14062base\maps\mapinfo\fig_01.wor Table 1 Major Closure Decisions From Base Closure Rounds 1988, 1991, 1993, 1995, and 2005 Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Year Total Acreage Acreage Civilian Military Closed Location Name Type Acreage Disposed (1) to Dispose Jobs Lost Jobs Lost

1 1988 Victorville (San George Air Force Base Air Force 5,062 3,297 1,765 506 4,852 Bernardino Co.) 2 1988 San Bernardino Norton Air Force Base Air Force 2,221 2,163 58 2,133 4,520 3 1991 Marina Fort Ord (2) Army 27,848 15,032 12,816 2,835 13,619 4 1991 San Francisco Hunter's Point Naval Station (3) Navy 494 75 419 93 4,132 5 1991 San Diego Naval Electronic Systems Air Force 3 3 0 619 6 Engineering Center (NESEC) 6 1993 Sacramento Mather Air Force Base Air Force 5,716 1,525 4,191 1,012 1,988 7 1994 Long Beach Naval Station Long Beach (4) Navy 1,498 1,459 39 6,716 9,782 8 1994 Sunnyvale Moffett Field Naval Air Station Navy 3,097 3,097 0 633 3,359 9 1994 San Francisco Presidio Army 1,480 1,480 0 3,150 2,140 10 1995 Sacramento Sacramento Army Depot Army 485 485 0 3,164 334 11 1995 Oakland Fleet Industrial Supply Center Navy 1,089 1,048 41 276 140 12 1995 Atwater (Merced) Castle Air Force Base Air Force 2,777 2,777 0 1,149 5,239 13 1995 Oakland Oakland Army Base Army 425 425 0 1,749 0 14 1995 Novato Hamilton Army Air Field Army 1,672 1,672 0 3 26 15 1995 Sacramento McClellan Air Force Base Air Force 3,452 387 3,065 8,828 2,757 16 1996 Oakland Oak Knoll Naval Hospital Navy 183 183 0 809 1,472 17 1996 Vallejo Mare Island Naval Shipyard Navy 5,292 3,982 1,309 7,567 1,963 18 1997 San Diego Naval Training Center Navy 541 490 51 402 5,186 19 1997 Alameda Naval Air Station (5) Navy 2,676 80 2,596 3,228 10,962 20 1997 San Francisco Naval Station Treasure Island Navy 455 0 455 454 637 21 1998 Richmond Pt. Molate Naval Fuel Depot (6) Navy 413 372 41 17 86 22 1999 Irvine El Toro Marine Corps Air Station Navy 4,687 4,606 81 979 5,689 23 1999 Tustin Marine Corps Air Station Navy 1,602 1,453 149 348 3,757 2001 Ontario (L.A. Area) Ontario International Airport Air Air Force 12 12 0 n/a n/a 24 Guard Station 25 2005 Concord Naval Weapons Station Navy 12,800 5,170 5,170 n/a n/a

TOTAL 85,980 51,273 32,246 46,670 82,646

2010 Riverbank Riverbank Army Ammunition Plant Army 173 0 173 146 89 2011 Long Beach USARC Long Beach Army 5 0 5 5 5 2011 Sunnyvale Onizuka AFS Army 140 0 140 171 107

TOTAL (6) 318 0 318 322 201

(1) This number represents the total number of acres disposed to all eligible agencies, including other federal agencies. (2) 811 acres have been retained by the Army. (3) 494 represents the usable number of acres at Hunter's Point Naval Shipyard; hundreds of acres are submerged and unusable. (4) Includes Long Beach Naval Shipyard. (5) Includes Naval Aviation Depot, Alameda. (6) Includes major bases only.

Sources: Civilian Job Losses from GAO. Military Bases: Status of Prior Base Realignment and Closure Rounds. Dec 1998 (unless otherwise noted) Military Job Losses from California Governor's Office of Planning and Research. California Military Base Closures: Current Status of Reuse Efforts. Dec 1994 (unless otherwise noted) Report of the California Military Base Reuse Task Force to Governor Pete Wilson, A Strategic Response to Base Reuse Opportunities. Jan 1994. (Map) Department of Defense. Report Required by Section 2912 of the Defense Base Closure and Realignment Act of 1990, March 2004. Air Force Acreage Information from Gary Kuwabara, Air Force Real Property Agency. Fort Ord Information from www.fortordcleanup.com, 1/13/07. Navy Information from Web site www.navfac.navy.mil/brc/cf-bin/aboutus/acres.cfm. Navy Facilities Engineering Command Base Realignment and Closure; Disposed With Acres. Military Job Losses also from Office of Economic Adjustment. BRAC Commission 1995 Estimate of Jobs Gains/ Losses. Interviews with the City officials.

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property, many of the bases are still California based on their reuse far from realizing their ultimate potential at buildout. The reuse goals. The delays in reusing methodology used to estimate these and redeveloping many of these impacts include detailed case studies bases have occurred for numerous of six closed bases, more generalized reasons, including lack of funding case studies of two other bases, and for environmental clean‐up, an extrapolation of the remaining complex interagency coordination unconveyed acreage. related to clean‐up, and lengthy and restrictive requirements related to The following is a summary of the property transfer. statewide findings:

3. The redevelopment of these large‐ • Job growth. There are 117,000 scale bases will have far‐reaching permanent jobs planned for economic implications for the those portions of the military California economy. Many of these bases that have not been closed bases are located in built‐out, conveyed and redeveloped, and land‐constrained local communities potential for an annual average within larger regions that are of 10,000 temporary jobs related experiencing significant growth‐ to new construction at the bases. related impacts (e.g., traffic congestion, environmental problems) caused by suburban and “exurban” expansion. The impacts of this regional expansion will have long‐term adverse implications on the health of the State economy and the quality of life of the State’s residents. Capitalizing on the urban infill opportunities offered by base reuse will help to concentrate new development within existing urban Former Naval Station Treasure Island areas and reduce the future impacts of growth, helping to maintain the • Housing production. Many of attractiveness of the State for the 23,000 new housing units existing and future residents and planned for these military bases businesses. will be concentrated in existing urban areas in Orange County, 4. Delays in redeveloping the bases the San Francisco Bay Area, and have resulted in quantifiable the Monterey Bay Area, which economic losses to the regions in can help to alleviate a growing which the bases are located and to housing crisis in these regions the State. As presented in Table 2, and maintain the long‐term unrealized economic benefits were attractiveness of these estimated for unconveyed portions employment hubs for future of all major closed bases in businesses.

4 P:\17000s\17002Base\Report\17002rpt.doc Table 2 Summary of Statewide Economic Impacts Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Naval Hunter's Naval Station Air Station Point Naval Treasure George McClellan Norton/ Economic Impacts TOTAL Alameda Fort Ord Shipyard Island AFB AFB Mather (1) Other (2)

New Development Non-Residential Square Footage 74,521,797 4,077,368 14,004,000 2,931,301 523,466 8,757,281 16,599,483 11,755,755 15,873,143 Housing Units 23,399 1,639 8,623 2,000 6,000 0 153 0 4,984 Affordable Units 6,631 450 2,328 640 1,800 0 0 0 1,412 Hotel Rooms 3,025 0 1,790 0 420 50 121 0 644

Development Value ($000s) $20,910,025 $1,554,120 $7,013,355 $1,103,052 $4,412,557 $954,379 $830,941 $587,788 $4,453,835

Jobs Permanent Jobs 116,907 7,114 14,877 8,766 1,773 15,281 24,305 19,889 24,901 Average Annual Construction Jobs 10,175 959 1,874 366 2,660 857 704 588 2,167 5 State and Local Tax Revenue Sales Tax Revenue (3) State $57,581,960 $3,137,291 $18,406,098 $2,703,737 $17,879,110 $0 $3,190,766 $0 $12,264,957 Local $5,765,924 $276,082 $1,619,737 $302,819 $1,573,362 $0 $765,784 $0 $1,228,142 Property Tax Revenue State $49,145,904 $1,554,120 $7,013,355 $1,103,052 $26,634,193 $954,379 $830,941 $587,788 $10,468,077 Local $133,538,440 $12,432,958 $56,106,839 $8,824,413 $8,745,688 $7,635,029 $6,647,525 $4,702,302 $28,443,688 Local Transient Occupancy Tax Revenue $13,134,518 $0 $8,232,210 $0 $2,008,843 $95,813 $0 $0 $2,797,652 State Income Tax Revenue (4) $168,828,578 $10,241,850 $59,813,472 $7,906,100 $54,352,495 $0 $554,174 $0 $35,960,487

Summary of Tax Revenue State $275,556,441 $14,933,261 $85,232,925 $11,712,889 $98,865,798 $954,379 $4,575,880 $587,788 $58,693,522 Local $152,438,882 $12,709,039 $65,958,785 $9,127,231 $12,327,893 $7,730,841 $7,413,308 $4,702,302 $32,469,482

(1) More generalized case studies were conducted for these Air Force Bases. Norton AFB's transfer is 97% complete. (2) Impacts at the remaining bases were estimated to represent 21.3 percent of the statewide impacts based on their proportion of total unconveyed acreage. (3) Sales tax estimates based on new sales from project households, except at McClellan, where sales tax is estimated based on proposed square footage of new retail development. It is assumed that new retail proposed for the bases will be supported by new project households. (4) Estimated only for new residential development.

Source: Economic & Planning Systems, Inc.

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• Affordable housing. The new teachers.1 The bases are current reuse plans for the likely to generate $152 million unconveyed portions of the annually to these local closed bases include governments including sales, approximately 6,600 below‐ property, and transient market rate housing units occupancy, which is the that will be made available to equivalent to the average salary low‐ and moderate‐ income of approximately 2,000 new households who cannot afford to police officers.2 live near competitive job opportunities. As demonstrated above, significant economic losses are associated with • Development value. At full delaying the reuse of closed military buildout, the new development bases. Actions taken to expedite the proposed for the unconveyed environmental clean‐up process and portions of California’s closed transfer of property rights to the LRAs military bases will generate $21 will have a direct positive impact on the billion in real estate value, near‐ and long‐term strength of the helping to strengthen the California economy. California economy over the long term. The majority of this value will come from private investment, supplemented by public investment such as redevelopment agency funds and other public‐private partnerships. It is reasonable to assume that approximately 20 percent of the total development value, or $4.2 billion, could be realized over the next five years, if timely property transfer and Former McClellan Air Force Base redevelopment occurs.

• Annual tax revenue. The redevelopment of the unconveyed areas within closed bases is estimated to generate approximately $276 million in tax revenue annually to the State, which represents an average salary for over 4,900 1 Based on the average elementary teacher’s salary in California from the Bureau of Labor Statistics. 2 Based on the average patrol officer’s salary in California from the Bureau of Labor Statistics.

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II. ECONOMIC IMPACT ANALYSIS OF DELAYED REUSE

Over the last 18 years, the State of provides flexibility to the LRAs in California has experienced 25 major furthering reuse goals, before receiving military base closures resulting in the fee title to the land, while the military loss of 46,700 civilian jobs and 82,600 pursues environmental clean‐up of the military personnel.3 Base closures bases. In most cases, however, the reuse affected more than people’s jobs; they goals for the properties include selling caused ripple effects throughout local “clean” land for new development, economies, negatively impacting which cannot be done under a long‐ secondary employment, retail sales and term lease. The delay in conveying business activity, tax revenue, housing clean land has created a significant values, community services, and hindrance to LRAs’ pursuit of their minority communities. Estimates of the reuse goals and the recuperation of jobs secondary impacts of military bases and economic productivity lost as the indicate that for every dollar of military result of base closure. spending that occurred at the bases there was an additional secondary effect Delays in conveyance of base property on the local economy of between $0.20 to the LRAs is a major concern of LRAs, and $0.40 as a result of contracts and and has been recognized in official consumer goods purchased by base General Accounting Office reports.5 employees.4 Major closed military bases These delays are attributable to in California are currently at various numerous factors, including the cost stages in the reuse planning, and regulatory complexity of environmental clean‐up and conveyance environmental clean‐up, and restrictive process. and lengthy property transfer requirements and processes. As presented in Table 1, the DOD has conveyed approximately 51,300 acres of There are economic repercussions property to various public and private associated with delays in the reuse of entities. Another 32,200 acres, or 39 closed military bases that have affected percent of the total, remain to be the State of California and numerous disposed, based on the most recent local communities. These delays have available data. Many of the acres of resulted in a fiscal detriment to the State land that the military has yet to convey and local governments, and have stifled are under long‐term lease. The Lease in economic development efforts in Furtherance of Conveyance (LIFOC) affected communities. A case study analysis was performed to help approximate the magnitude of the 3 Represents on‐site civilian jobs and related statewide benefits that could be realized contractors. by redevelopment of these bases to both 4 Institute of Business and Economic Research, the State and local communities. The Center for Real Estate and Urban Economics economic impacts associated with Working Paper Series. Working Paper No. 94‐225: Defense Industry Conversion, Base Closure, and the California Economy: A Review of the Literature and 5 Military Bases—Status of Prior Realignment and Annotated Bibliography. February 1995. Closure Rounds. Report No. GAO/NSIAD‐99‐36.

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refined or updated version of the Reuse Plan proposed by the City and/or interested developer.

The unconveyed land at these six bases represents 65 percent of the total unconveyed acreage at closed military bases in California. Additionally, more generalized case studies were conducted for the unconveyed portions of Norton and Mather Air Force Bases. All of the Former Alameda Naval Air Station case studies represent a total of 82

percent of the unconveyed acreage. The delayed reuse were estimated in detail impacts associated with the unconveyed for six of the closed California military portions of the remaining bases were bases outlined in Table 1. These case estimated based on their proportion of studies provide the basis for estimating the total acreage (approximately 18 the statewide impacts. The case studies percent), resulting in an estimate of total include: statewide impacts. • Alameda Naval Air Station in the City of Alameda; • Fort Ord Military Installation in the Cities of Marina, Seaside, and the County of Monterey; • Hunter’s Point Naval Shipyard in the City of San Francisco; • Treasure Island Naval Station in the City of San Francisco; • George Air Force Base in the City of Victorville; and Hunter’s Point (Source: SMWM) • McClellan Air Force Base in the City and County of Sacramento. ECONOMIC IMPACT

The economic impacts of delayed reuse ANALYSIS at these six closed military installations were estimated based on buildout As presented below, estimates of the capacity of the most recent land use economic benefits unrealized by the plan for the portion of the bases not yet State and affected local jurisdictions are redeveloped. In some cases, the most segregated into economic development recent plan consists of the Reuse Plan and fiscal impacts, including unrealized job growth, housing production, submitted to the DOD by the LRA, while in other cases it represents a affordable housing, and overall development value, as well as State and

local tax revenue. These estimates are

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based on the full buildout of the Job Growth redevelopment of these bases and Military bases were and continue to be assume all net new development to the large employers that contribute State and local jurisdictions. Although substantially to the State economy. in actuality some of the development Over 129,000 civilian and military jobs will represent relocations within the were lost as a result of the closures of State, it is difficult to predict to what military bases in California. The reuse extent this projected growth would of the unconveyed portions of the closed occur at all in California if these urban bases is projected to create infill opportunities were not available. approximately 117,000 permanent jobs Table 2 summarizes the statewide at buildout, more than twice the number economic impacts by case study. of civilian jobs lost from closed bases in Detailed information regarding the California. economic impacts of delayed reuse for

each of the case studies is provided in The construction of new development Appendices A through F. on the unconveyed land is estimated to create an annual average of 10,000 ECONOMIC DEVELOPMENT temporary construction jobs during IMPACTS redevelopment of the bases. The number of temporary annual California faces many challenges to the construction jobs is based on estimates long‐term strength and sustainability of of labor costs associated with the its economy, including one of the most development of each base. severe housing availability and affordability crises in the country, Housing Production worsening commutes and traffic Closed military bases in California offer congestion, and diminishing significant opportunities for developing environmental resources. Many existing much‐needed housing. Military bases and potential businesses are looking in existing urban areas can provide an outside of California for communities alternative to building houses on the that can provide more affordable suburban fringe. About 23,000 units of workforce housing opportunities, better housing are proposed for the quality of life for their employees, and a unconveyed areas of the closed bases at less expensive business environment. buildout. This represents a significant The redevelopment of closed military addition to each city’s local housing bases increases the supply of land for stock, and will help to alleviate the new development in competitive, land‐ housing shortage in California. constrained real estate markets, helping Furthermore, housing production on to temper price increases. Such military bases promotes development in redevelopment also results in significant urban areas and aids in alleviating the development value, job growth, housing social, environmental, and economic production, and affordable housing costs of development in outlying, throughout the State. suburban areas.

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Affordable Housing Fiscal Impacts California suffers from a chronic The State and local jurisdictions affordable housing shortage, and lacks throughout California are struggling to sufficient affordable housing for low‐ close multimillion dollar gaps in their income and many moderate‐income budgets. These fiscal crises potentially families. As the State’s population has jeopardize the provision of crucial continued to grow, housing affordable public services including schools, social to low‐ and moderate‐income services, and public safety. The reuse of households has failed to keep pace. closed bases can help to generate much‐ Home ownership is unattainable for all needed State and local tax revenues. but the highest income families in many The redevelopment of the unconveyed communities, especially in those portions of the closed bases is estimated localities within close proximity to the to generate approximately $276 million region’s job centers. This crisis has in tax revenue annually to the State. In contributed to sprawling growth in addition, approximately $152 million in outlying locations, lengthening tax revenue is expected to accrue to commutes and decreasing the overall local jurisdictions from the quality of life for many California redevelopment of these closed military residents. The housing crisis has bases. diminished the ability of California to compete for jobs and economic The estimates of fiscal impacts on the development. State and local communities focus on major development‐related revenue Closed military bases present an sources crucial to the funding of key opportunity to build affordable housing local services (i.e., schools and fire and in areas close to or within metropolitan police services) including sales, employment centers. Approximately property, transient occupancy, and 6,600 affordable units are planned to be income tax revenues. built on the unconveyed land, representing 28 percent of the total Sales Tax housing units being planned for these Sales tax revenue has become one of the bases. most important revenue sources for both the State and local governments Development Value because of the restrictions Proposition At full buildout, the new residential and 13 placed on property tax. The new commercial development proposed for households proposed for the the closed bases will generate $21 billion unconveyed areas within the closed in real estate value, helping to bases are expected to generate new strengthen the State and local economies retail sales, which are estimated to result over the long‐term. It is reasonable to in $58 million in annual sales tax assume that approximately 20 percent of revenue to the State and over $5.7 the total development value, or $4.2 million to local jurisdictions. billion, could be realized over the next five years, if timely property transfer and redevelopment occur.

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Property Tax State Income Tax The property value from redevelopment New households proposed for the of the unconveyed areas will produce unconveyed areas are estimated to $49 million in annual property tax generate $169 million in annual State revenue to the State to help fund schools income tax revenue used to fund and $134 million in annual property tax important public services throughout revenue to local jurisdictions. The the State. majority of the property tax revenues that accrue to the local jurisdictions from new development at the bases will not be available to pay for crucial public services like police and fire, but instead will be used to help ensure redevelopment occurs at the bases. Local property tax that accrues to the local redevelopment agencies will also be used to help fund affordable housing in the local communities.

Former Fort Ord Military Installation (Source: www.fora.org)

Transient Occupancy Tax The 3,000 new hotel rooms planned for several bases are estimated to generate $13 million in annual transient occupancy tax revenue, an increasingly important revenue source for financially struggling local governments.

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III. REFERENCES

Air Force Real Property Agency. Status of our Operating Locations—Norton AFB. Accessed June 14, 2004 \

Fort Ord Reuse Authority Quarterly Report, January 1, 2004 to March 31, 2004.

Labat and Anderson Incorporated. Administrative Record. December 1, 2003. Accessed June 14, 2004 < www.adminrec.com/BaseDescription/> for each Air Force Base, last updated Dec 2003.

Naval Facilities Engineering Command Base Realignment and Closure. Accessed June 11, 2004

Office of Economic Adjustment Department of Defense. BRAC Commission 1995 Estimate of Job Gains/Losses. Accessed July 6, 2004

Report of the California Military Base Reuse Task Force to Governor Pete Wilson, Susan Golding, Chair. A Strategic Response to Base Reuse Opportunities. January 1994.

State of California Governor’s Office of Planning and Research. California Military Base Closures Current Status of Reuse Reports. Rev. December 12, 1994.

United States Department of Defense. Base Reuse Implementation Manual. July 1995.

United States Department of Defense. Report Required by Section 2912 of the Defense Base Closure and Realignment Act of 1990, as amended through the National Defense Authorization Act for Fiscal Year 2003. March 2004.

United States General Accounting Office. Military Bases—Status of Prior Base Realignment and Closure Rounds. Report No. GAO/NSIAD‐99‐36. December 1998.

Walter A. Haas School of Business, Center for Real Estate and Urban Economics Working Paper Series. Working Paper No. 94‐225: Defense Industry Conversion, Base Closure, and the California Economy: A Review of the Literature and Annotated Bibliography. February 1995.

United States Government Accountability Office. Before the Defense Base Closure and Realignment Commission. Report No. GAO‐05‐614. May, 2005.

California Institute. California and Base Closures. April, 2005.

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Economic & Planning Systems Real Estate Economics Regional Economics Public Finance Land Use Policy

APPENDIX A:

ECONOMIC IMPACT ANALYSIS OF ALAMEDA NAVAL AIR STATION

Appendix A Table of Contents Naval Air Station Alameda Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Table # Table Title

Table A-1 Summary of Economic Impacts Table A-2 Project Description at Buildout of Unconveyed Portions Table A-3 Permanent Jobs at Buildout Table A-4 Average Annual Construction Jobs Table A-5 Total Project Value at Buildout Table A-6 Sales Tax Revenue Table A-7 Property Tax Revenue Table A-8 Income Tax Revenue

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\Alameda__\AlamedaNAS.xls Table A-1 Summary of Economic Impacts Naval Air Station Alameda Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Economic Impacts Total

New Development Non-Residential Square Footage 6,280,368 Housing Units 1,735 Affordable Units 433 Hotel Rooms 0

Development Value $2,082,392,714

Jobs Permanent Jobs 11,980 Average Annual Construction Jobs 1,284

State and Local Tax Revenue Sales Tax Revenue State $3,375,028 Local $297,002 Property Tax Revenue State $2,082,393 Local $16,659,142 Local Transient Occupancy Tax Revenue $0 State Income Tax Revenue $11,017,953

Source: Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\Alameda__\AlamedaNAS.xls Table A-2 Project Description at Buildout of Unconveyed Portions Naval Air Station Alameda Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Land Use Amount

Residential Units Market Rate For-Sale Units 1,302 Affordable Rate For-Sale Units 276 Rental Units 157 Subtotal 433 Total 1,735

Non-Residential Square Footage New Development Retail 336,000 Office/R&D 2,900,000 Adaptive Reuse 1st Generation 1,388,595 2nd Generation 860,303 Modified 2nd Generation 795,470 Total 6,280,368

Source: Alameda Point Community Partners, and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\Alameda__\AlamedaNAS.xls Table A-3 Permanent Jobs at Buildout Naval Air Station Alameda Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Maximum Sq. Ft. Potential Direct Land Use Amount per Employee Employment

New Development Retail 336,000 300 1,120 Office/R&D 2,900,000 450 6,444 Adaptive Reuse 1st Generation 1,388,595 800 1,736 2nd Generation 860,303 450 1,912 Modified 2nd Generation 795,470 450 1,768

Total 6,280,368 12,980

Existing Jobs 1,000

Net New Jobs 11,980

Sources: City of Alameda, and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\Alameda__\AlamedaNAS.xls Table A-4 Average Annual Construction Jobs Naval Air Station Alameda Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Estimating Item Factor Project Total Description/Source

Development Value (1) $2,082,392,714 Direct Development Costs (2) 70% $1,457,674,900 Labor Costs (3) 50% $728,837,450 EPS Estimate Average Annual Construction Worker Wage $51,589 BLS, Oakland MSA

Total One-Time Non-Permanent / Construction Jobs 14,128 Estimated Development Period (years) 11

Average Annual Construction Jobs (4) 1,284

(1) Development value is used as a proxy for total development costs. (2) Assumes 70% of total development costs are direct (hard) costs. (3) Assumes 50% of direct costs are labor costs (wages). (4) Average annual construction jobs during the estimated development period.

Sources: BLS (2002), and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\Alameda__\AlamedaNAS.xls Table A-5 Total Project Value at Buildout Naval Air Station Alameda Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Value per Unit Total Land Use Amount /per Sq.Ft. Value

Residential Units Market Rate For-Sale Units 1,302 $814,000 $1,059,828,000

Affordable Rate For-Sale 276 $317,000 $87,492,000 Rental (1) 157 n/a n/a Subtotal 433 $87,492,000 Total 1,735 $1,147,320,000

Nonresidential Square Footage New Development Retail 336,000 $160 $53,760,000 Office/R&D 2,900,000 $200 $580,000,000

Adaptive Reuse 1st Generation 1,388,595 $57 $79,149,915 2nd Generation 860,303 $163 $140,229,389 Modified 2nd Generation 795,470 $103 $81,933,410 Total 6,280,368 $935,072,714

TOTAL PROJECT $2,082,392,714

(1) Assumes minimal development value associated with the affordable rental units planned for Alameda NAS.

Sources: Alameda Point Community Partners; and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\Alameda__\AlamedaNAS.xls Table A-6 Sales Tax Revenue Calculation at Buildout Naval Air Station Alameda Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Item Assumption Amount

Number of Households (1) 1,531

Average Household Income (2) $121,652 Taxable Sales per Household 29% $35,279 Total Project Taxable Expenditures $54,000,444

Total Sales Tax Revenue 8.75% $4,725,039

Sales Tax Revenue to the State 6.25% $3,375,028

Taxable Sales Captured by City of Alameda 55% $29,700,244 Sales Tax Revenue to City of Alameda General Fund 1.00% $297,002

Sales Tax Revenue to Other Jurisdictions $1,053,009

(1) Excludes 157 affordable rental apartments and assumes a 97 percent occupancy rate for remaining units based on City's existing vacancy rate. (2) Derived from a mortgage payment for a weighted average home price and assuming 30 percent of income spent on housing.

Sources: Bureau of Labor Statistics, State Board of Equalization, California Department of Finance, and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\Alameda__\AlamedaNAS.xls Table A-7 Property Tax Revenue Calculation at Buildout Naval Air Station Alameda Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Item Assumption Amount

Total Project Value $2,082,392,714 Property Tax Revenue 1.00% $20,823,927 Alameda RDA (1) 80% $16,659,142 School Districts (2) 10% $2,082,393 Other Local Jurisdictions $2,082,393

(1) Assumes 80% of property tax accrues to the City's Redevelopment Agency including a 20% set aside for affordable housing. (2) It is assumed that 20% of the property tax collected passes through to other taxing agencies and approximately 50% of the pass-through is allocated to the State for schools. The specific amount will vary by jurisdiction.

Source: Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\Alameda__\AlamedaNAS.xls Table A-8 Income Tax Revenue Calculation at Buildout Naval Air Station Alameda Economic Impacts of Delayed Military Base Reuse in California; E

Item Assumption Amount

Number of Households (1) 1,531

Average Household Income $121,652 Total Project Household Income $180,622,174

Income Tax Revenue to State 6.10% $11,017,953

(1) Excludes 157 affordable rental apartments and assumes a 97 percent occupancy rate for remaining units based on City's existing vacancy rate.

Sources: California Franchise Tax Board, and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\Alameda__\AlamedaNAS.xls

Economic & Planning Systems Real Estate Economics Regional Economics Public Finance Land Use Policy

APPENDIX B:

ECONOMIC IMPACT ANALYSIS OF FORT ORD MILITARY INSTALLATION

Appendix B Table of Contents Fort Ord Military Installation Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Table # Table Title

Table B-1 Summary of Economic Impacts at Buildout Table B-2 Project Description at Buildout of Unconveyed Portions Table B-3 Permanent Jobs at Buildout Table B-4 Average Annual Construction Jobs Table B-5 Total Project Value at Buildout Table B-6 Sales Tax Revenue Table B-7 Property Tax Revenue Table B-8 Transient Occupany Tax Revenue Table B-9 Income Tax Revenue

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\FortOrd\FortOrd_DRMP.xls Table B-1 Summary of Economic Impacts Fort Ord Military Installation Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Economic Impacts Total

New Development

Non-Residential Square Footage 14,004,000 Housing Units 8,623 Affordable Units 2,328 Hotel Rooms 1,790

Development Value $7,013,354,852

Jobs Permanent Jobs 14,877 Implied Annual Construction Jobs 1,874

State and Local Tax Revenue Sales Tax Revenue State $18,406,098 Local $1,619,737 Property Tax Revenue State $7,013,355 Local $56,106,839 Local Transient Occupancy Tax Revenue $8,232,210 State Income Tax Revenue $59,813,472

Source: Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\FortOrd\FortOrd.xls\FortOrd_DRMP.xls Table B-2 Project Description at Buildout of Unconveyed Portions Fort Ord Military Installation Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Land Use Amount

Residential Units Market Rate For-Sale (1) 6,295 Subtotal 6,295 Affordable Rate (2) For-Sale 466 Rental 1,863 Subtotal 2,328 Total 8,623

Non-Residential Square Footage Retail 1,968,000 Office/R&D 12,036,000 Total 14,004,000

Hotel Rooms 1,790

(1) Includes residential units projected through 2015 from the Fort Ord Development and Resource Management Plan (excluding the 380-unit Seaside Highlands project currently under completion.) (2) Assumes 27 percent of residential units at Fort Ord per the AMBAG 9/04 "Housing Sites Inventory" are made affordable to a range of affordability levels and that 20 percent of affordable units are deed-restricted for-sale units and 80 percent are rental units.

Sources: Fort Ord Development and Resource Management Plan, Association of Monterey Bay Area Governments; and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\FortOrd_\FortOrd_DRMP.xls Table B-3 Permanent Jobs at Buildout Fort Ord Military Installation Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Projected Job Land Use Creation (through 2015)

Retail 2,372 Office/R&D 11,350 Hotel 1,155 Total 14,877

Source: Fort Ord Reuse Authority Development and Resource Management Plan, page 133; and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\FortOrd_\FortOrd_DRMP.xls Table B-4 Average Annual Construction Jobs Fort Ord Military Installation Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Estimating Item Factor Project Total Description/Source

Development Value (1) $7,013,354,852 Direct Development Costs (2) 70% $4,909,348,396 Labor Costs (3) 50% $2,454,674,198 EPS Estimate Average Annual Construction Worker Wage $43,660 BLS, Salinas MSA

Total One-Time Non-Permanent / Construction Jobs 56,222 Estimated Development Period (years) 30 Average Annual Construction Jobs (4) 1,874

(1) Development value is used as a proxy for total development costs. (2) Assumes 70% of total development costs are direct (hard) costs. (3) Assumes 50 percent of direct costs are labor costs (wages). (4) Average annual construction jobs during the estimated development period.

Sources: BLS (2002), and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\FortOrd_\FortOrd_DRMP.xls Table B-5 Total Project Value at Buildout Fort Ord Military Installation Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Value per Unit Total Land Use Amount /per Sq.Ft. Value

Residential Units

Market Rate For-Sale (1) 6,295 $650,000 $4,091,750,000 Affordable Rate (2) For-Sale 466 $212,567 $98,980,065 Rental 1,863 $87,627 $163,210,386 Subtotal 2,328 $262,190,452 Total 8,623 $4,353,940,452

Non-Residential Square Footage Retail 1,968,000 $201 $394,912,000 Office/R&D 12,036,000 $158 $1,906,502,400 Total 14,004,000 $2,301,414,400

Hotel Rooms 1,790 $200,000 $358,000,000

TOTAL PROJECT $7,013,354,852

(1) Market value based on current home prices for the new Seaside Highlands project at Fort Ord. (2) Assumes affordable units are made affordable to households earning at 100 percent Area Median Income (AMI) for for-sale units and 50 percent of AMI for rental apartments.

Sources: HUD 2003 Income Limits; and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\FortOrd_\FortOrd_DRMP.xls Table B-6 Sales Tax Revenue Calculation at Buildout Fort Ord Military Installation Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Item Assumption Amount

Number of Households (1) 8,192

Average Household Income (2) $123,966 Taxable Sales per Household 29% $35,950 Total Project Taxable Expenditures $294,497,569

Total Sales Tax Revenue 7.25% $21,351,074

Sales Tax Revenue to State 6.25% $18,406,098

Taxable Sales Captured by Local Jurisdictions (3) 55% $161,973,663 Sales Tax Revenue to Local Jurisdictions' General Fund 1.00% $1,619,737

Sales Tax Revenue to Other Local Jurisdictions $1,325,239

(1) Assumes a 95 percent occupancy rate. (2) Derived from a mortgage payment for a weighted average home price and assuming 30 percent of income spent on housing. (3) Assumed to include the Cities of Marina, and Seaside, and the County of Monterey.

Sources: Bureau of Labor Statistics, State Board of Equalization, and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\FortOrd_\FortOrd_DRMP.xls Table B-7 Property Tax Revenue Calculation at Buildout Fort Ord Military Installation Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Item Assumption Amount

Total Project Value $7,013,354,852 Property Tax Revenue 1.00% $70,133,549 Local Jurisdictions' RDA (1) 80% $56,106,839 Property Tax Revenue to School Districts (2) 10% $7,013,355 Other Local Jurisdictions $7,013,355

(1) Assumes 80% of property tax accrues to the city's/county's Redevelopment Agency including a 20% set aside for affordable housing. (2) It is assumed that 20% of the property tax collected passes through to other taxing agencies and approximately 50% of the pass-through is allocated to the State for schools. The specific amount will vary by jurisdiction.

Source: Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\FortOrd_\FortOrd_DRMP.xls Table B-8 Transient Occupancy Tax Revenue Calculation at Buildout Fort Ord Military Installation Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Item Assumption Amount

Number of Hotel Rooms 1,790

Potential Gross Revenue $180 average nightly room rate $117,603,000 Effective Net Revenue 70% average occupancy rate $82,322,100

Transient Occupancy Tax Revenue to Local Jurisdictions 10.00% average tax rate $8,232,210

Source: Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\FortOrd_\FortOrd_DRMP.xls Table B-9 Income Tax Revenue Calculation at Buildout Fort Ord Military Installation Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Item Assumption Amount

Number of Households (1) 8,192

Average Household Income $123,966 Total Project Household Income $964,733,414

Income Tax Revenue to State 6.20% $59,813,472

(1) Assumes a 95 percent occupancy rate.

Sources: California Franchise Tax Board, and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\FortOrd_\FortOrd_DRMP.xls

Economic & Planning Systems Real Estate Economics Regional Economics Public Finance Land Use Policy

APPENDIX C:

ECONOMIC IMPACT ANALYSIS OF HUNTER’S POINT NAVAL SHIPYARD

Appendix C Table of Contents Hunter's Point Naval Shipyard Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Table # Table Title

Table C-1 Summary of Economic Impacts at Buildout Table C-2 Project Description at Buildout of Unconveyed Portions Table C-3 Permanent Jobs at Buildout Table C-4 Average Annual Construction Jobs Table C-5 Total Project Value at Buildout Table C-6 Sales Tax Revenue Table C-7 Property Tax Revenue Table C-8 Income Tax Revenue

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\Hunter'sPoint\NavalShipyard.xls Table C-1 Summary of Economic Impacts Hunter's Point Naval Shipyard Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Economic Impacts Total

New Development

Non-Residential Square Footage 2,931,301 Housing Units 2,000 Affordable Units 640 Hotel Rooms 0

Development Value $1,103,051,600

Jobs Permanent Jobs 8,766 Average Annual Construction Jobs 366

State and Local Tax Revenue Sales Tax Revenue State $2,703,737 Local $302,819 Property Tax Revenue State $1,103,052 Local $8,824,413 Local Transient Occupancy Tax Revenue $0 State Income Tax Revenue $7,906,100

Source: Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\Hunter'sPoint\NavalShipyard.xls Table C-2 Project Description at Buildout of Unconveyed Portions Hunter's Point Naval Shipyard Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Land Use Amount

Residential Units Residential 1,500 Mixed-use Residential 500 Total 2,000

Affordable Units (1) 640

Nonresidential Square Footage R&D 994,253 Industrial 682,324 Mixed Use Commercial 712,641 Cultural/Educational 542,083 Total 2,931,301

Note: residential and nonresidential development based on Phase 2; sources include PDC, Redevelopment Plan and current planning estimates.

(1) Affordable units are assumed to be 32% of total units.

Source: San Francisco Mayor's Office of Economic Development; Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\Hunter'sPoint\NavalShipyard.xls Table C-3 Permanent Jobs at Buildout Hunter's Point Naval Shipyard Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Maximum Maximum Potential Sq. Ft. Potential Direct Employment Direct & Indirect Land Use Total Sq. Ft. per Employee Employment Multiplier (1) Employment

Office 586,013 300 1,953 1.55 3,028 Retail 126,627 450 281 1.07 301 Cultural/Educational 542,083 305 1,777 1.53 2,719 Industrial/R&D 1,676,577 350 4,790 1.32 6,323 Total 2,931,300 8,802 12,371

Existing Jobs 36

Net New Jobs 8,766

Sources: Lennar/BVHP Preliminary Development Concept, 17 Dec 1999; and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\Hunter'sPoint\NavalShipyard.xls Table C-4 Average Annual Construction Jobs Hunter's Point Naval Shipyard Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Estimating Item Factor Project Total Description/Source

Development Value (1) $1,103,051,600 Direct Development Costs (2) 70% $772,136,120 (3) Labor Costs 50% $386,068,060 EPS Estimate Average Annual Construction Worker Wage $52,780 BLS, San Francisco MSA

Total One-Time Non-Permanent / Construction Jobs 7,315 Estimated Development Period (years) 20 Average Annual Construction Jobs (4) 366

Sources: BLS (2002), and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\Hunter'sPoint\NavalShipyard.xls Table C-5 Total Project Value at Buildout Hunter's Point Naval Shipyard Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Value per Total Item Amount Unit or Sq. Ft. (1) Project Value

Residential Units 2,000 $312,604 $625,208,000 Commercial Space (2) 2,389,218 $200 $477,843,600 Total $1,103,051,600

(1) Represent average projectwide values for residential and commercial development including affordable housing. (2) Assumes cultural/educational space does not generate market value.

Source: Lennar/BVHP Preliminary Development Concept, 17 Dec 1999; Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\Hunter'sPoint\NavalShipyard.xls Table C-6 Sales Tax Revenue Calculation at Buildout Hunter's Point Naval Shipyard Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Item Assumption Amount

Number of Households (1) 1,900

Average Household Income (2) $78,511 Taxable Sales per Household 29% $22,768 Total Project Taxable Expenditures $43,259,794

Total Sales Tax Revenue 8.50% $3,677,082

Sales Tax Revenue to State 6.25% $2,703,737

Taxable Sales Captured by City of San Francisco 70% $30,281,856 Sales Tax Revenue to City of San Francisco General Fund (3) 1.00% $302,819

Sales Tax Revenue to Other Jurisdictions $670,527

(1) Assumes a 95 percent occupancy rate based on City's existing vacancy rate. (2) Derived from a mortgage payment for a weighted average home price and assuming 30 percent of income spent on housing. (3) Other sales tax revenue is typically dedicated for specific local services and not included in the city/county's General Fund.

Sources: Bureau of Labor Statistics, State Board of Equalization, California Department of Finance, and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\Hunter'sPoint\NavalShipyard.xls Table C-7 Property Tax Revenue Calculation at Buildout Hunter's Point Naval Shipyard Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Item Assumption Amount

Total Project Value $1,103,051,600 Property Tax Revenue 1.00% $11,030,516 San Francisco RDA (1) 80% $8,824,413 School Districts (2) 10% $1,103,052 Other Local Jurisdictions $1,103,052

Source: Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\Hunter'sPoint\NavalShipyard.xls Table C-8 Income Tax Revenue Calculation at Buildout Hunter's Point Naval Shipyard Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Item Assumption Amount

Number of Households (1) 1,900

Average Household Income $78,511 Total Project Household Income $149,171,703

Income Tax Revenue to State 5.30% $7,906,100

(1) Assumes a 95 percent occupancy rate based on City's existing vacancy rate.

Sources: California Franchise Tax Board, and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\Hunter'sPoint\NavalShipyard.xls

Economic & Planning Systems Real Estate Economics Regional Economics Public Finance Land Use Policy

APPENDIX D:

ECONOMIC IMPACT ANALYSIS OF NAVAL STATION TREASURE ISLAND

Appendix D Table of Contents Naval Station Treasure Island Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Table # Table Title

Table D-1 Summary of Economic Impacts at Buildout Table D-2 Project Description at Buildout of Unconveyed Portions Table D-3 Permanent Jobs at Buildout Table D-4 Average Annual Construction Jobs Table D-5 Total Project Value at Buildout Table D-6 Sales Tax Revenue Table D-7 Property Tax Revenue Table D-8 Transient Occupany Tax Revenue Table D-9 Income Tax Revenue

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\TreasureIsland\TreasureIsland.xls Table D-1 Summary of Economic Impacts Naval Station Treasure Island Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Economic Impacts Total

New Development Nonresidential Square Footage 523,466 Housing Units 6,000 Affordable Units 1,800 Hotel Rooms 420

Development Value $4,412,556,840

Jobs Permanent Jobs 1,773 Average Annual Construction Jobs 2,660

State and Local Tax Revenue Sales Tax Revenue State $17,879,110 Local $1,573,362 Property Tax Revenue State $26,634,193 Local $8,745,688 Local Transient Occupancy Tax Revenue $2,008,843 State Income Tax Revenue $54,352,495

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\TreasureIsland\TreasureIsland.xls Table D-2 Project Description at Buildout of Unconveyed Portions Naval Station Treasure Island Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Land Use Amount

Residential Units Market Rate For-Sale 3,570 Rental 630 Subtotal 4,200

Affordable Rate Inclusionary For-Sale 630 Inclusionary Rental 112 TIHDI/Agency Affordable 1,058 Subtotal 1,800 Total Units 6,000

Non-Residential Square Footage Retail 282,700 Building One (office portion) 0 Hangars 240,766 Total Square Feet 523,466

Hotel Rooms Treasure Island Conference Hotel 370 Yerba Buena Conference Hotel 50 Total Rooms 420

Source: San Francisco Mayor's Office of Economic Development; Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\TreasureIsland\TreasureIsland.xls Table D-3 Permanent Jobs at Buildout Naval Station Treasure Island Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Maximum Sq. Ft. Potential Direct Land Use Amount per Employee Employment

Retail 282,700 300 942 Building One (office portion) 0 250 0 Hangars 240,766 800 301 Hotel Rooms (1) 420 630 Total 1,873

Existing Jobs 100

Net New Jobs 1,773

(1) Assumes 1.5 jobs per hotel room.

Sources: Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\TreasureIsland\TreasureIsland.xls Table D-4 Average Annual Construction Jobs Naval Station Treasure Island Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Estimating Item Factor Project Total Description/Source

Development Value (1) $4,412,556,840 Direct Development Costs (2) 70% $3,088,789,788 (3) Labor Costs 50% $1,544,394,894 EPS Estimate Average Annual Construction Worker Wage $52,780 BLS, San Francisco MSA

Total One-Time Non-Permanent / Construction Jobs 29,261 Estimated Development Period (years) 11 Average Annual Construction Jobs (4) 2,660

Sources: BLS (2002), and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\TreasureIsland\TreasureIsland.xls Table D-5 Total Project Value at Buildout Naval Station Treasure Island Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Value per Unit Total Land Use Amount /per Sq.Ft. Value

Residential Units Market Rate For-Sale 3,570 $1,050,000 $3,748,500,000 Rental 630 $358,000 $225,540,000 Subtotal 4,200 $3,974,040,000 Affordable Rate Inclusionary For-Sale 630 $340,000 $214,200,000 Inclusionary Rental 112 $138,000 $15,456,000 TIHDI/Agency Affordable 1,058 $0 $0 Subtotal 1,800 $229,656,000 Total 6,000 $4,203,696,000

Non-Residential Square Footage Retail 282,700 $180 $50,886,000 Building One (office portion) 0 $152 $0 Hangars 240,766 $40 $9,630,640 Total 523,466 $60,516,640

Hotel Rooms Treasure Island Conference Hotel 370 $395,000 $146,150,000 Yerba Buena Conference Hotel 50 $43,884 $2,194,200 Total 420 $148,344,200

TOTAL PROJECT $4,412,556,840

Sources: Treasure Island Development Corporation; and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\TreasureIsland\TreasureIsland.xls Table D-6 Sales Tax Revenue Calculation at Buildout Naval Station Treasure Island Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Item Assumption Amount

Number of Households (1) 4,695

Average Household Income (2) $210,107 Taxable Sales per Household 29% $60,931 Total Project Taxable Expenditures $286,065,762

Total Sales Tax Revenue 8.50% $24,315,590

Sales Tax Revenue to State 6.25% $17,879,110

Taxable Sales Captured by City of San Francisco 55% $157,336,169 Sales Tax Revenue to City of San Francisco General Fund (3) 1.00% $1,573,362

Sales Tax Revenue to Other Jurisdictions $4,863,118

(1) Excludes TIHDI housing units and assumes a 95 percent occupancy rate for the remaining units based on City's existing vacancy rate. (2) Derived from a mortgage payment for a weighted average home price and assuming 30 percent of income spent on housing. (3) Other sales tax revenue is typically dedicated for specific local services and not included in the city/county's General Fund.

Sources: Bureau of Labor Statistics, State Board of Equalization, California Department of Finance, and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\TreasureIsland\TreasureIsland.xls Table D-7 Property Tax Revenue Calculation at Buildout Naval Station Treasure Island Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Item Assumption Amount

Total Project Value $4,412,556,840 Value of 1,473 Excluded Units (1) $1,083,282,704 Project Value (Excluding 1,473 Units) $3,329,274,136

Total Property Tax Revenue 1.00% $44,125,568 Tax Revenue from Excluded Units $10,832,827 Tax Revenue from Project (Excluding 1,473 units) $33,292,741 San Francisco RDA (2) 80% $26,634,193 School Districts (3) $8,745,688 Other Jurisdictions $8,745,688

(1) The current proposal for Treasure Island assumes 1,475 units are excluded from the RDA. The unit mix is assumed to be proportional to the total. (2) Assumes 80% of property tax accrues to the City's Redevelopment Agency including a 20 percent affordable housing set aside with the exception of 200 units excluded from the RDA. (3) For the units in the RDA, it is assumed that 20% of the property tax collected passes through to other taxing agencies and approximately 50% of the pass-through is allocated to the State for schools. It is assumed that 50 percent of the property tax from the excluded units is allocated to school districts.

Source: Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\TreasureIsland\TreasureIsland.xls Table D-8 Transient Occupancy Tax Revenue Calculation at Buildout Naval Station Treasure Island Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Item Assumption Amount

Number of Hotel Rooms 420

Potential Gross Revenue $130 average nightly room rate $19,929,000 Effective Net Revenue 72% average occupancy rate $14,348,880

Transient Occupancy Tax Revenue to City 14.00% City tax rate $2,008,843

Sources: Treasure Island Development Corporation, and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\TreasureIsland\TreasureIsland.xls Table D-9 Income Tax Revenue Calculation at Buildout Naval Station Treasure Island Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Item Assumption Amount

Number of Households (1) 4,695

Average Household Income $210,107 Total Project Household Income $937,111,979

Income Tax Revenue to State 5.80% $54,352,495

(1) Excludes TIHDI housing units and assumes a 95 percent occupancy rate for the remaining units based on City's existing vacancy rate.

Sources: California Franchise Tax Board, and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\TreasureIsland\TreasureIsland.xls

Economic & Planning Systems Real Estate Economics Regional Economics Public Finance Land Use Policy

APPENDIX E:

ECONOMIC IMPACT ANALYSIS OF GEORGE AIR FORCE BASE

Appendix E Table of Contents George Air Force Base Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Table # Table Title

Table E-1 Summary of Economic Impacts Table E-2 Project Description at Buildout of Unconveyed Portions Table E-3 Permanent Jobs at Buildout Table E-4 Average Annual Construction Jobs Table E-5 Total Project Value at Buildout Table E-6 Transient Occupancy Tax Revenue at Buildout Table E-7 Property Tax Revenue

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\GeorgeAFB\George_Econ_Impacts.xls Table E-1 Summary of Economic Impacts George Air Force Base Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Economic Impacts Total

New Development Nonresidential Square Footage 8,757,281 Housing Units 0 Affordable Units 0 Hotel Rooms 50

Development Value $954,378,563

Jobs Permanent Jobs 15,281 Average Annual Construction Jobs 857

State and Local Tax Revenue Sales Tax Revenue State $0 Local $0 Property Tax Revenue State $954,379 Local $7,635,029 Local Transient Occupancy Tax Revenue $95,813 State Income Tax Revenue $0

Source: Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\GeorgeAFB\George_Econ_Impacts.xls Table E-2 Project Description at Buildout of Unconveyed Portions George Air Force Base Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Gross Net Assumed Item Acres Acres (1) FAR Total

Appropriation of Unconveyed EDC land Manufacturing/Distribution 375 281 0.20 2,455,313 Sq Ft Bio Med 110 83 0.30 1,080,338 Sq Ft Aviation Maintenance/Cargo 200 150 0.10 654,750 Sq Ft E-Commerce/Technology 465 349 0.30 4,566,881 Sq Ft Executive Travel Center 50 38 50 rooms HDPP (2) 25 19 no impact Golf Course 180 135 no impact Total 1,405 1,054

(1) Assumes a net to gross ratio of 75%. (2) HDPP is a Power Plant.

Sources: City of Victorville, Southern California Logistics Airport, Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\GeorgeAFB\George_Econ_Impacts.xls Table E-3 Permanent Jobs at Buildout George Air Force Base Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Maximum Sq. Ft. Potential Direct Land Use Square Feet per Employee Employment

Manufacturing/Distribution 2,455,313 800 3,069 Bio Med 1,080,338 500 2,161 Aviation Maintenance/Cargo 654,750 2,000 327 E-Commerce/Technology 4,566,881 450 10,149 Executive Travel Center 50 (1) 75 HDPP no impact n/a 0 Golf Course no impact n/a 0

Total 8,757,281 15,781

Existing Jobs (2) 500

Net New Jobs 15,281

(1) Assumes 1.5 jobs per hotel room (2) This represents several hundred aviation related jobs on the unconveyed PBC portion of the base.

Source: City of Victorville, Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\GeorgeAFB\George_Econ_Impacts.xls Table E-4 Average Annual Construction Jobs George Air Force Base Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Estimating Item Factor Project Total Description/Source

Development Value (1) $954,378,563 Direct Development Costs (2) 70% $668,064,994 Labor Costs (3) 50% $334,032,497 EPS Estimate Average Annual Construction Worker Wage $38,970 BLS, Riverside-San Bernardino MSA

Total One-Time Non-Permanent / Construction Jobs 8,572 Estimated Development Period (years) 10 City of Victorville

Average Annual Construction Jobs (4) 857

Sources: BLS (2002), and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\GeorgeAFB\George_Econ_Impacts.xls Table E-5 Total Project Value at Buildout George Air Force Base Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Value per Sq Ft Total Land Use Square Feet /per room Value

Nonresidential Square Footage

Manufacturing/Distribution 2,455,313 $40 $98,212,500 Bio Med 1,080,338 $130 $140,443,875 Aviation Maintenance/Cargo 654,750 $40 $26,190,000 E-Commerce/Technology 4,566,881 $150 $685,032,188 Executive Travel Center 50 $90,000 $4,500,000 HDPP no impact Golf Course no impact Total $954,378,563

Source: Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\GeorgeAFB\George_Econ_Impacts.xls Table E-6 Transient Occupancy Tax Revenue at Buildout George Air Force Base Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Item Assumption Amount Source

Executive Travel Center No. of Rooms 50 Average Occupancy 75% EPS Average Extended Stay Room Rate $100 Comparables Total Annual Project Room Nights $1,368,750

Transient Occupancy Tax Rate 7.00% $95,813 City of Victorville

Sources: City of Victorville, and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\GeorgeAFB\George_Econ_Impacts.xls Table E-7 Property Tax Revenue George Air Force Base Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Item Assumption Amount

Total Project Value $954,378,563 Property Tax Revenue 1.00% $9,543,786 VVRDA (1) 80% $7,635,029 School Districts (2) 10% $954,379 Other Local Jurisdictions $954,379

(1) Assumes 80% of property tax accrues to the Victor Valley Redevelopment Agency including a 20% set aside for affordable housing. (2) It is assumed that 20% of the property tax collected passes through to other taxing agencies and approximately 50% of the pass-through is allocated to the State for schools. The specific amount will vary by jurisdiction.

Source: Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\GeorgeAFB\George_Econ_Impacts.xls

Economic & Planning Systems Real Estate Economics Regional Economics Public Finance Land Use Policy

APPENDIX F:

ECONOMIC IMPACT ANALYSIS OF MCCLELLAN AIR FORCE BASE

Appendix F Table of Contents McClellan Air Force Base Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Table # Table Title

Table F-1 Summary of Economic Impacts Table F-2 Project Description at Buildout of Unconveyed Portions Table F-3 Permanent Jobs at Buildout Table F-4 Average Annual Construction Jobs Table F-5 Total Project Value at Buildout Table F-6 Sales Tax Revenue Table F-7 Property Tax Revenue Table F-8 Income Tax Revenue

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\McClellan\McClellan_Econ_Impacts2 Table F-1 Summary of Economic Impacts McClellan Air Force Base Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Economic Impacts Total

New Development Non-Residential Square Footage 16,599,483 Housing Units 153 Affordable Units 0 Hotel Rooms 121

Development Value $830,940,588

Jobs Permanent Jobs 24,305 Average Annual Construction Jobs 704

State and Local Tax Revenue Sales Tax Revenue State $3,190,766 Local $765,784 Property Tax Revenue State $830,941 Local $6,647,525 Local Transient Occupancy Tax Revenue (1) $0 State Income Tax Revenue $554,174

(1) It is assumed that the hotel is already generating transient occupancy tax and that conveyance of the property to the LRA will not affect this revenue source.

Source: Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\McClellan\McClellan_Econ_Impacts2 Table F-2 Project Description at Buildout of Unconveyed Portions McClellan Air Force Base Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Land Use Units or Square Feet

Residential Wherry (1) 123 Duplexes 103 Apartments 20 Historic (townhomes and duplex) (2) 30 Serna Village 0 Total residential units 153 Total Affordable 0

Hotel (3) 121

Industrial Research and Development 1,444,137 Manufacturing 4,249,146 Warehouse 5,163,717 Subtotal 10,857,000

Airfield 1,788,000

Office 2,463,483

Other (4) Community Support 1,286,791 Retail 204,209 Subtotal 1,491,000

Total 16,599,483

(1) 43 units of the Wherry housing are currently rented by Mercy Housing. Upon completion of the Serna Village project, it is assumed that all 123 units of Wherry housing will return to market rate. (2) One of the 16 historic townhomes is used by the hotel. (3) The Hotel rooms are already generating revenue and their value is not counted in this analysis. (4) "Other" includes retail, community support, and park uses. Approximately 80% of the "Other" square footage is federally-retained community support facilities, such as the Commissary, BX, and VA clinics, that will remain for use by the Sacramento region's active and retired military population.

Sources: McClellan Air Force Base Draft Final Reuse Plan, Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\McClellan\McClellan_Econ_Impacts2 Table F-3 Permanent Jobs at Buildout McClellan Air Force Base Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Maximum Sq. Ft. Potential Direct Land Use Square Feet per Employee Employment

Industrial Light Industrial 1,444,137 450 3,209 Heavy Industrial 4,249,146 450 9,443 Warehouse 5,163,717 750 6,885 Subtotal 10,857,000 19,537

Airfield Aviation Industrial 1,494,885 1,000 1,495 Aviation Industrial/Light Industrial 293,115 450 651 Subtotal 1,788,000 2,146

Office 2,463,483 350 7,039

Other Community Support (1) 1,286,791 n/a Retail 204,209 350 583 Subtotal 1,491,000 583

Total 16,599,483 29,305

Existing Jobs (2) 5,000

Net New Jobs 24,305

(1) Community Support buildings are already being used and will not create new jobs. (2) From McClellan Park and Key Adjacent Interface Investment Strategy, October 2002. This is a conservative estimate because these are existing jobs throughout the base, not just in the unconveyed portion.

Source: Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\McClellan\McClellan_Econ_Impacts2 Table F-4 Average Annual Construction Jobs McClellan Air Force Base Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Estimating Item Factor Project Total Description/Source

Development Value (1) $830,940,588 Direct Development Costs (2) 70% $581,658,412 (3) Labor Costs 50% $290,829,206 EPS Estimate Average Annual Construction Worker Wage $41,310 BLS, Sacramento MSA

Total One-Time Non-Permanent / Construction Jobs 7,040 Estimated Development Period (years) 10 County of Sacramento

Average Annual Construction Jobs (4) 704

Sources: BLS (2002), and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\McClellan\McClellan_Econ_Impacts2 Table F-5 Total Project Value at Buildout McClellan Air Force Base Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Units or Monthly Rent Total Land Use Square Feet or Value/Sq.Ft. (1) Value (2)

Residential Wherry 123 Duplexes 103 $1,000 $17,657,143 Apartments 20 $700 $2,400,000 Historic 30 $1,400 $7,200,000 Serna Village (3) 0 n/a $0 Total residential units 153 $27,257,143

Hotel (4) 121

Industrial Light Industrial 1,444,137 $50 $72,206,850 Heavy Industrial 4,249,146 $50 $212,457,300 Warehouse 5,163,717 $35 $180,730,095 Subtotal 10,857,000 $465,394,245

Airfield Aviation Industrial 1,494,885 $40 $59,795,410 Aviation Industrial/Light Industrial 293,115 $40 $11,724,590 Subtotal 1,788,000 $71,520,000

Office 2,463,483 $100 $246,348,300

Other Community Support (5) 1,286,791 n/a $0 Retail 204,209 $100 $20,420,900 Subtotal 1,491,000 $20,420,900

Total 16,599,483 $830,940,588

(1) A significant portion of the space will consist of reuse of existing buildings. The lease rate represents a blended average between new construction and reuse. (2) Residential value assumes a capitlization rate of 7%. (3) Serna Village, currently under construction, will provide transitional housing for rehabilitation program participants. The housing units will not be available to the general public and their market value is not evaluated here. (4) The Hotel rooms are already generating revenue and their value is not counted in this analysis. (5) Community Support Buildings are already in use and will not create new project value.

Source: Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\McClellan\McClellan_Econ_Impacts2 Table F-6 Sales Tax Revenue McClellan Air Force Base Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Item Assumption Amount

Square Feet of Retail 204,209

Average Retail Sales per Sq. Ft. $250 Total Project Taxable Expenditures $51,052,250

Total Sales Tax Revenue 7.75% $3,956,549

Sales Tax Revenue to the State 6.25% $3,190,766

Sources: State Board of Equalization, Dollars and Cents of Shopping Centers, and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\McClellan\McClellan_Econ_Impacts2 Table F-7 Property Tax Revenue McClellan Air Force Base Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Item Assumption Amount

Total Project Value $830,940,588 Property Tax Revenue 1.00% $8,309,406 Mather/McClellan RDA (1) 80% $6,647,525 School Districts (2) 10% $830,941 Other Local Jurisdictions $830,941

(1) Assumes 80% of property tax accrues to the Mather/McClellan Redevelopment Agency including a 20% set aside for affordable housing. (2) It is assumed that 20% of the property tax collected passes through to other taxing agencies and approximately 50% of the pass-through is allocated to the State for schools. The specific amount will vary by jurisdiction.

Source: Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\McClellan\McClellan_Econ_Impacts2 Table F-8 Income Tax Revenue McClellan Air Force Base Economic Impacts of Delayed Military Base Reuse in California; EPS #17002

Item Assumption Amount

Number of Households (1) 144

Average Household Income (2) $67,200 Total Project Household Income $9,084,822

Income Tax Revenue to State 6.10% $554,174

(1) Excludes 84 Serna Village transitional housing units and assumes a 94 percent occupancy rate for remaining units based on City's existing vacancy rate. (2) Based on current monthly rents, assuming households spend 25% of their income on housing.

Sources: California Franchise Tax Board, and Economic & Planning Systems, Inc.

Economic & Planning Systems, Inc. 1/30/2007 P:\14000s\14062base\CaseStudy\McClellan\McClellan_Econ_Impacts2