HomeMy WebLinkAbout(P3 c) Patel mixed-use project economic impact report, twenty years, exercutive...An Executive Summary of
the Economic Impact of
Patel Mixed-Use Project
in Port Arthur, Texas
Prepared by:
Impact DataSource
4709 Cap Rock Drive
Austin, Texas 78735
(512) 892-0205
Fax (512) 892-2569
www.impactdatasource.com
October 2, 2021
Introduction
This report summarizes the results of an economic impact analysis performed by Impact DataSource, Austin,
Texas. The analysis was to determine the impact that Patel Mixed-Use Project in Port Arthur, Texas, will have
on the economy of the Port Arthur area and the costs and benefits for local taxing districts over the
first twenty, during construction and operations at the facility
Description of the Facility
Patel Mixed-Use Development is planned 275 acre project in Port Arthur, Texas with the following
components which will be built out over ten years:
Hotels 2 100 rooms
Offices 150000 square feet of floor space
Single family homes 200 homes
Apartments 1200 units
Storage center 100000 square feet of building space
Retail shopping center 125000 square feet of building space
Fast food or restaurant 6 20000 square feet of building space
pad sites
15 acre resort RV park 200 spaces
In addition to land, an estimated $354 million will be invested in the project: $340 million to construct
buildings and other real property improvements and $14 million for tenants' furniture, fixtures and equipment.
Plus, tenants in the project will create an estimated 717 direct jobs with market salary rates.
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.
An Executive Summary of the Projected Economic Impact from
Patel Mixed-Use Project
Possible Components of the Project
Executive Summary 2
The Estimated Economic Impact during the Facility's Construction
The facility's construction will support an estimated $448 million in gross area product or economic
activity in area during its construction, an estimated 410 total jobs each year during construction of the
project, and total salaries estimated to be $154 million.
During construction, the project will generate the following revenues for the City and County:
City County Total
Sales taxes $1,394,603 $348,651 $1,743,254
Building permits and fees $2,040,750 $2,040,750
Total $3,435,353 $348,651 $3,784,004
The Estimated Economic Impact of the Facility over the First Twenty Years of Operations of the Facility
The facility will have the following economic impact on the Port Arthur area over the first twenty years
of operations:
Total number of permanent direct and indirect jobs to be created 939
Number of residents in development 4,200
Number of students in the development expected in Port Arthur ISD 1,050
Salaries to be paid to direct and indirect workers
Taxable sales and purchases expected in the City
Lodging sales at hotels in the development $160,836,768
The facility's assets added to local tax rolls at build out including $396,207,500
business taxable inventories
$839,190,301
$1,027,424,623
City Revenues During
Construction of the Project
Economic Impact over the First Twenty Years of Operations of the Facility
Executive Summary 3
Costs and Benefits for Local Taxing Districts over the First Twenty Years of the Operations of the Facility
Local taxing districts can expect costs and benefits over the first twenty years of the operations of the facility,
as scheduled below, beginning with the additional revenues to be received.
Additional Revenues During the First Twenty Years of Operations for Local Taxing Districts
Local taxing districts can expect to receive the following revenues over the first twenty years from the facility,
its residents, employees and workers in indirect jobs created in the community:
Utility
Sales Property Franchise
Taxes Taxes Utilities Fees
City of Port Arthur $16,826,713 $57,028,570 $46,815,556 $11,444,803
Jefferson County $5,608,904 $26,280,450
Port Arthur ISD $114,229,954
Port of Port Arthur $13,354,478
Sabine-Neches Navigation District $6,043,684
Drainage District # 7 $21,240,982
Total $22,435,617 $238,178,119 $46,815,556 $11,444,803
Additional
State and
Hotel Other Taxes Federal Total
Occupancy and User School Additional
Taxes Fees Funding Revenues
City of Port Arthur $11,258,574 $10,464,543 $153,838,758
Jefferson County $2,832,107 $34,721,461
Port Arthur ISD $106,876,569 $221,106,523
Port of Port Arthur $13,354,478
Sabine-Neches Navigation District $6,043,684
Drainage District # 7 $21,240,982
Total $11,258,574 $13,296,649 $106,876,569 $450,305,886
Additional Revenues For Local Taxing Districts Over the First
Twenty Years of the Facility's Operation
Executive Summary 4
Additional Costs During the First Twenty Years of Operations for Local Taxing Districts
Local taxing districts will incur the following costs over the first twenty years of the operations of the facility --
to provide services to the facility:
Reduction
in State
School
Funding as a
Costs of Result of
Costs of Providing Costs of Property
Services to Monthly Educating being Added
the Utility New to Local
Development Services Students Tax Rolls Total
City of Port Arthur $19,413,572 $46,815,556 $66,229,127
Jefferson County $4,318,262 $4,318,262
Port Arthur ISD $100,403,496 $78,227,069 $178,630,565
Port of Port Arthur $0
Sabine-Neches Navigation District $0
Drainage District # 7 $0
Total $23,731,833 $46,815,556 $100,403,496 $78,227,069 $249,177,954
Additional Net Benefits During the First Twenty Years of Operations for Local Taxing Districts
The additional public benefits less additional public costs will result in the following net benefits for the
City, County and other local taxing districts over the first twenty years of the facility's operation:
Benefits Costs Net Benefits
City of Port Arthur $153,838,758 $66,229,127 $87,609,631
Jefferson County $34,721,461 $4,318,262 $30,403,199
Port Arthur ISD $221,106,523 $178,630,565 $42,475,958
Port of Port Arthur $13,354,478 $0 $13,354,478
Sabine-Neches Navigation District $6,043,684 $0 $6,043,684
Drainage District # 7 $21,240,982 $0 $21,240,982
Total $450,305,886 $249,177,954 $201,127,932
First Twenty Years of the Facility's Operation
Costs for Local Taxing Districts Over the First Twenty Years
of the Facility's Operation
Net Benefits for Local Taxing Districts Over the
Executive Summary 5
Conduct of the Analysis
This analysis was conducted by Impact DataSource using information supplied by the developer along with
local tax rates and some Impact DataSource estimates and assumptions.
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.
Executive Summary 6