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HomeMy WebLinkAbout06. Vail Economic Impact - infographic-08-14-19a41L f .,,. Z r 4 PER UNIT RETURNS For every $65,000 invested in one unit of resident housing in the Town of Vail, there are tangible returns to the Town and community, The following diagrams show how these returns are calculated in this analysis using the economic and community benefits described on the previous pages. QER UNIT RETURN ON INVESTMENT SALES TAX STUDENT TO TOWN GENERATION alb Ilir �i lir $3,239 annual return (divided by) R$65,000 Town investment QER UNIT INVESTMENT. MULTIPLIER COMMUNITY + ECONOMIC + OPPORTUNITY BENEFITS VALUE COSTS r'$ COMMUTE FILLED PARKING TIME POSITIONS SOLUTIONS °— O co V Ifau_ STUDENT HOUSEHOLD WORKER GENERATION SPENDING TURNOVER 0 o ��Z $312,467 annual return (divided by) R$65,000 Town investment 0 9 This packet presents the economic and community benefits of investments in resident housing in the Town of Vail. In times of competing community investment priorities and alternatives, it is important that the benefits of resident housing investment are understood by the community and its leadership, The Town of Vail has made significant investments in resident housing over many decades. Such investments have been rooted in an awareness that affordable and available housing for residents and the workforce benefit not only residents, but the broader economy, business community, overall community character, and quality of the guest experience. For more information please visit http: //wwwva i l i n d eed,co m • HOUSING TARGETS The Vail Housing 2027 Strategic Plan set a goal of adding 1,000 new units to this inventory by 2027, or 100 units per year, The existing Town of Vail deed -restricted housing inventory (as of May 2019) includes 830 units. Based on investments made through its Vail InDEED purchase program between 2017 and May 2019, the Town's average per -unit investment was $65,000, an investment amount the Town will target through 2027 A $65,000 INVESTMENT IN ONE UNIT OF RESIDENT HOUSING RETURNS... The direct return back to the Town of Vail from an investment of $65,000 in one unit of housing is $3,239 in the form of local sales tax and student back -fills, The annual return on investment to the Town is 5 percent of the initial investment, Nearly $312,500 in community benefits, economic value, and opportunity costs to the community as a whole, This return to the community is 4,81 times the initial investment by the Town, resulting in an investment multiplier of 4.81X, 1, 0 0 0 BY 2027 ASA 100 ANNUALLY $6m5MILLION Annual Town Investment PAGE 4 Prepared for the Vail Local Housing Authority (VLHA) August 2019 COMMUTE TIME 00 $825 THOUSAND Value of time ($20.40 per hour) for more than 40,000 annual commute hours eliminated CARBON EMISSIONS A 561 Reduced miles traveled reduces carbon emissions by 845 MTCO2e GUEST EXPERIENCE =w1b �V STUDENT GENERATION $207 THOUSAND Estimated total State of Colorado back -fill for 26 school -aged children A 845 MTCO2e DECREASE IN CARBON EMISSIONS IS EQUAL TO: 95 THOUSAND GALLONS OF GAS MILLION 2,2 VEHICLE MILES TRAVELED VOLUNTEERISM Alit $1,2 MILLION Value of increased volunteer labor to the non-profit community (at $28.02 per hour) 2.1%OF ALL COLORADO TO THE TOWN OF VAILCOMMUTERS 14 THOUSAND TREE SEEDLINGS GROWN FOR 10 YEARS Anecdotally, the quality of the guest experience improves with increased filled positions, business capacity, and local residents' community investments. FINDINGS The annual community benefits of an investment in 100 units of resident housing ($65 million) include the elimination of over 40,000 commute hours resulting in $825,000 in the value of time savings, a reduction of 845 MTCOZe in carbon emissions, $207,000 in State of Colorado back -fill for 26 school -aged children, and $1.2 million in volunteer labor. .................................................... FILLED POSITIONS o — �o_ $18A MILLION Estimated impact of 123 full- and part-time positions filled HOUSEHOLD SPENDING 111114 �o $2,6 MILLION Increased local resident household spending --------------------------------- .FINDINGS SALES TAX TO TOWN c/2 orb $116 THOUSAND New local sales tax revenue to the Town from increased local household spending The annual economic value of an investment in 100 units of resident housing ($6.5 million) is $18.1 million as a result of an increase in filled positions, $2.6 million in increased local household spending, and $116,000 in new local sales tax revenue. --------------------------------------------------------------------------------------- PARKING SOLUTIONS $11m3 MILLION Estimated construction cost for 113 spaces WORKER TURNOVER 1111Ato o* $841 THOUSAND Cost of worker turnover, training, and lost productivity FINDINGS. The annual opportunity costs of an investment in 100 units of resident housing ($6.5 million) are $11.3 million in avoided construction cost for 113 parking spaces and $841,000 in saved costs to businesses for worker turnover, training, and lost productivity PAGE 2 PAGE 3