HomeMy WebLinkAbout(P3 b) Summary of Patel mixed-use project economic impact report, over first th...About the Project
Patel Mixed-Use Development is a 275 acre residential, office, retail, hotel, storage, and resort RV park
project that will be built out over ten years
During the first three years, 300 apartment units will be built along with a 100 room hotel.
City Incentives/Assistance Requested for the Development
As an incentive for this development, the developer requests the City of Port Arthur extend Jimmy Johnson
Blvd to Hwy 365 as soon as possible and increase the capacity of all utilities to support this development. The
developer will be donating approximately 7 acres of land with an estimated value of $300,000 to the City of
Port Arthur for the road extension.
How the economy of the area will be impacted during construction is discussed next.
Economic Impact During Construction Over the First Three Years
An estimated $66 million will be spent constructing the 300 apartment units and the 100 room hotel.
As a result, construction workers will spend money in the city and local construction materials will be
purchased for the project. This construction activity will translate into the following revenues for the city of
Port Arthur:
City
Sales taxes $246,016
Building permits and fees $360,000
Total $606,016
Economic Impact from the Operations in the Development Over the First Three Years
Over the first three years, the operations of the project will generate the following economic impacts:
Total number of permanent direct and indirect jobs to be created48
Number of residents in development 900
Number of students in the development expected in Port Arthur ISD 225
Salaries to be paid to direct and indirect workers
Taxable sales and purchases expected in the City
Lodging sales at hotels in the development $8,945,374
The facility's assets added to local tax rolls by year three $68,778,900
$2,131,161
$11,545,131
10/2/21
Economic Impact of Patel Mixed Use Development Over the First Three Years
City Revenues During
Construction of the Project
Economic Impact over the First Three Years of Operations of the Facility
Costs and Benefits for the City from the Operations in the Development Over the First Three Years
Over the first three years of operations in the development, the city will receive the following net benefits
from the operations of the development:
Revenues:
Sales taxes $173,177
Property taxes $1,602,643
Utilities $1,374,423
Utility franchise fees $335,949
Hotel occupancy taxes $626,176
Other taxes and user fees $307,160
Subtotal revenues $4,419,528
Additional costs:
Costs of services to the development $644,774
Costs of monthly utility services $1,374,423
Subtotal costs $2,019,197
Net benefits for the city (revenues minus costs) $2,400,331
Preparation of this Summary
This summary was prepared by Impact DataSource, LLC from the results of a twenty year economic
impact analysis that it conducted of the project.
Impact DataSource is a 27-year-old Austin economic consulting, research and analysis firm. The firm
has conducted economic impact analyses of numerous projects in Texas and 39 other states. In
addition, the firm has developed economic impact analysis computer programs for several clients,
including the New Mexico Economic Development Department.
The firm’s principal, Jerry Walker, performed this economic impact analysis. He is an economist and has
Bachelor of Science and Master of Business Administration degrees in accounting and economics from
Nicholls State University, Thibodaux, Louisiana.
Net Benefits for the City over the First Three Years of Operations in the
Development
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