HomeMy WebLinkAboutMemo - Mail Packet - 10/27/2015 - Memorandum From Tom Leeson And Laurie Kadrich Re: Agenda Materials For The Joint Meeting With The Windsor Town Board Regarding The Proposed Amendment To The Corridor Activity Center (Cac)March 4, 2015
Mr. Mike Downey
Vice President
Fort Collins Dodge Chrysler Jeep Ram
Mr. David Swanson
CEO
Tynan’s Nissan and Tynan’s Kia
Via email
Re: Fort Collins Dodge Chrysler Jeep Ram and Tynan’s Economic and Fiscal
Impact Analysis
Mr. Downey and Mr. Swanson:
This letter documents the projected economic and fiscal impacts of the proposed relocation and
development of Fort Collins Dodge Chrysler Jeep Ram (DCJR), Tynan’s Nissan and Tynan’s Kia
(collectively Tynan’s auto dealerships) on the Town of Windsor, Colorado (Town). The analysis
also considers development of four adjacent commercial pad sites.
Our analysis is based on the most recent site development plans; the auto dealership’s current
and projected sales revenue data; Larimer County assessor data; conversations with local
commercial real estate brokers; the Town’s development fee schedule; and the Town’s fiscal
model.
Background
Fort Collins DCJR and Tynan’s auto dealerships are considering a relocation and expansion of
their respective facilities; a result of increased demand for their products and services. Fort
Collins DCJR and Tynan’s have identified a 53-acre commercially zoned land parcel within the
Town of Windsor as a viable location for the auto dealerships, shown in Figure 1.1 This land
parcel is located to the southeast of the Interstate 25/State Highway 392 Interchange. The site
1 The site is comprised of two individual land parcels. The northern parcel (# 86221-47-002) is 22.81 acres and the southern
parcel (# 86220-00-003) is 30.00 acres.
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was chosen due to its high visibility from major roadways; ease of access; traffic volume; and
strategic location in Northern Colorado. Along with the construction of the auto dealership
facilities, four commercial pad sites are included in the site plan (Figure 2).
Figure 1.
Map of Proposed
Development Site
Source:
BBC Research & Consulting; ArcGIS.
Corridor activity center. The 53-acre land parcel is located within the Corridor Activity
Center (CAC), an area created through an intergovernmental agreement between the City of Fort
Collins and the Town of Windsor.2 Properties within the CAC are located in close proximity to
the Interstate 25/State Highway 392 Interchange (Interchange) and subject to a special one-
time fee to recover the infrastructure costs associated with the Interchange improvement.3 The
special fee imposed on the “Benefitted Properties” results from the anticipated appreciation in
value due to the construction of the Interchange, as well as to offset improvement costs
2 Town of Windsor, Ordinance NO. 2012-1440.
3 The CAC special one-time fee is to be paid in quarterly installments over seven years.
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associated with Benefitted Property development, as well as the subsequent increase in
vehicular trips.
The type of development allowed on a property within the CAC is restricted to a set of permitted
land uses. Currently, auto dealerships are not listed as a permitted use. As such, allowance of
auto dealership development within the CAC would require an amendment to the
intergovernmental agreement between the City of Fort Collins and the Town of Windsor.
Fiscal Impact Findings
The proposed auto dealership and commercial development would create an annual net surplus
between $105,000 (auto dealerships only) and $290,000 (auto dealerships plus commercial
space). Additionally, the development will generate between $740,000 and $1 million in one-
time construction use tax and development fees for the Town, depending on the specific
characteristics of the pad development.4 The development of the land parcel will also recover
over $347,000 in one-time special fee assessments associated with the CAC.5
Methodology
BBC’s economic and fiscal impact analysis models municipal revenue and expenditure
associated with the development and operation of the auto dealerships and adjacent commercial
space. These revenue sources include sales tax, property tax, construction use tax, development
fees (impact fees and building permit fees) and CAC special fees. For other municipal revenues
and the expenditures component,6 BBC coordinated with the Town of Windsor to utilize their
existing fiscal model to estimate Town operating expenditures associated with the auto
dealerships and commercial space.
Development assumptions. The auto dealerships are expected to occupy approximately 30
acres, or 60 percent of the site. The Fort Collins DCJR auto dealership will occupy a 40,000
square foot facility, while Tynan’s Nissan and Tynan’s Kia will each require a 24,000 square foot
facility. The total built square footage of the auto dealerships on the development site is
expected to be 88,000 square feet.
The current site plan designates 9.9 acres, across four pad sites, for retail and/or office space.
Figure 2 presents the current site plan.
4 Development fees include building permit fees and impact fees. Impact fees are assessed on commercial development for
sewer plant investment, water plant investment, storm drainage and road impacts.
5 The original CAC special fee assessment for both parcels totaled $317,675 in 2012. Adjusted for inflation at 3.05%, specified
in the Town of Windsor Ordinance, the total fee amounts to $347,638 in 2015 dollars.
6 Other municipal revenues include charges for services, fines and forfeitures, licenses and permits, intergovernmental
revenue and other miscellaneous tax revenues.
PAGE 4
Figure 2.
Site Plan
Source: Ripley Design Inc.
PAGE 5
BBC has created two scenarios for commercial pad development:
Commercial Scenario 1 includes construction of four retail structures, averaging 5,000
square feet each (20,000 square feet total).
Commercial Scenario 2 also assumes construction of four structures averaging 5,000 square
feet each, but two retail structures (10,000 square feet total) and two office structures
(10,000 square feet total).
The below analysis considers both of the commercial pad development scenarios.
Municipal Revenues
BBC’s analysis focuses on impacts to the General Fund, Capital Improvement Fund and
Community and Recreation Center Fund. Projections of one-time revenue are included for the
Water Fund, Sewer Fund and Storm Drainage Fund.
The Town of Windsor imposes a 3.95 percent sales and use tax. This tax rate is broken into two
components: 3 percent for the General Fund and Capital Improvement Fund and 0.95 percent
dedicated to the Community and Recreation Center Fund. The 3 percent is split between the
General Fund (60 percent) and the Capital Improvement Fund (40 percent). The General Fund is
also supported by property tax revenues and building permit fees. Road impact fees go to the
Capital Improvement Fund, while other capital expansion fees go towards specific enterprise
funds (i.e. sewer plant investment fees go to the sewer fund).
Annual sales tax. In Colorado, sales tax imposed on motor vehicle purchases accrues to the
municipality of the purchaser’s residence, not the location of purchase. In 2011, the Town of
Windsor enacted an ordinance that “imposed a sales tax exemption on motor vehicles purchased
from dealerships located within the city limits [outside of the city limits was already exempted]
if the buyer is a Town of Windsor resident.”7 Consequently, sales tax is not collected by the
Town on any motor vehicle purchases. However, automotive parts sales are taxed by the Town
at the standard 3.95 percent.
Figure 3 on the following page presents the annual sales tax collected from the auto dealerships
and new retail development. The sales tax revenues attributable to the auto dealerships only
represent parts sales, for the reasons discussed above. BBC’s calculation for the auto dealerships
is based upon data and projections provided by Fort Collins DCJR and Tynan’s. BBC estimates
total annual sales tax revenues of almost $160,000 from the auto dealerships.
In addition to the assumptions made regarding total square footage and use, retail sales per
square foot is assumed to be $250 for both commercial development scenarios. New commercial
retail sales tax is almost $200,000 under Commercial Scenario 1 and around $100,000 under
Commercial Scenario 2.
7 Town of Windsor – Sales Tax FAQ, 2014.
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Figure 3.
Annual Sales Tax Revenue
Notes: (1) The General Fund receives 60% of the 3% sales tax rate.
(2) The Capital Improvement Fund (CIF) receives 40% of the 3% sales tax rate.
(3) The Community and Recreation Center Fund receives 100% of the 0.95% sales tax rate.
Source: Town of Windsor – Overview of Funds Structure; BBC Research & Consulting.
Auto Dealerships (parts sales only)
Fort Collins Dodge Chrysler Jeep Ram $2,517,756 $45,320 $30,213 $23,919 $99,451
Tynan's Nissan and Tynan's Kia $1,487,617 $26,777 $17,851 $14,132 $58,761
Total Auto Dealerships $4,005,373 $72,097 $48,064 $38,051 $158,212
Commercial Pad Development
Commerial Scenario 1
Retail 20,000 $250 $5,000,000 $90,000 $60,000 $47,500 $197,500
Office - - - - - - -
Total 20,000 $5,000,000 $90,000 $60,000 $47,500 $197,500
Commercial Scenario 2
Retail 10,000 $250 $2,500,000 $45,000 $30,000 $23,750 $98,750
Office 10,000 N/A N/A N/A N/A N/A N/A
Total 20,000 $2,500,000 $45,000 $30,000 $23,750 $98,750
Total Sales Tax Revenues
Auto Dealerships + Commercial Scenario 1 $9,005,373 $162,097 $108,064 $85,551 $355,712
Auto Dealerships + Commercial Scenario 2 $6,505,373 $117,097 $78,064 $61,801 $256,962
General Fund
Tax Collected (1)
Retail Sales /
Independent Calculation
Independent Calculation
Sq Ft Sq Ft Revenue Tax Collected (2) Tax Collected (3) Tax Collected
Total Sales CIF Rec Center Fund
Total
Windsor Sales
Sales Tax Source
PAGE 7
Construction material spending. For construction costs, BBC assumed market value costs of
$175 per square foot for auto dealership construction and $250 per square foot for commercial
retail/office construction. For all construction, cost related to materials is assumed to be 40
percent of the overall construction cost. Construction use tax within the Town is 3.95 percent.
Figure 4 below presents the development’s impact on funds that are supported by construction
use tax. Construction related to the auto dealerships is estimated to generate over $120,000 in
construction use tax. Commercial construction under both scenarios (constant construction cost
per square foot) would generate $40,000 in one-time construction use taxes. The Town would
collect over $160,000 in one-time construction use tax from the project.
Figure 4.
Construction Use Tax Revenue (One-Time)
Note: (1) The Capital Improvement Fund (CIF) receives 100% of the 3% use tax rate.
(2) The Community and Recreation Center Fund receives 100% of the 0.95% use tax rate.
Source: Town of Windsor—Overview of Funds Structure; BBC Research & Consulting.
Annual property tax. Real property taxes collected by the Town are based upon the assessed
value of the property, which is 29 percent of the actual value for commercial properties. BBC
projected future real property values by adding the material cost of the development (40 percent
of construction costs) to the existing real property values reported by the Larimer County
Assessor.8 The real property tax estimated for the auto dealerships is consistent with other
recently built auto dealerships in the area. In addition to real property tax, the auto dealerships
and commercial retailers will be taxed on personal property within their respective facilities,
also assessed at 29 percent of actual value. Fort Collins DCJR and Tynan’s provided BBC with
8 The 53 acre land parcel was recently purchased by the developer pursuing the auto dealership development. For the
purposes of this analysis, BBC used the 2015 Larimer County Assessor reported data.
Auto Dealerships
Fort Collins Dodge Chrysler Jeep Ram 40,000 $175 40% $42,000 $13,300 $55,300
Tynan's Nissan and Tynan's Kia 48,000 $175 40% $50,400 $15,960 $66,360
Total Auto Dealerships 88,000 $175 40% $92,400 $29,260 $121,660
Commercial Pad Development
Commercial Scenario 1
Retail 20,000 $250 40% $30,000 $9,500 $39,500
Office - - - - - -
Total 20,000 $30,000 $9,500 $39,500
Commercial Scenario 2
Retail 10,000 $250 40% $15,000 $4,750 $19,750
Office 10,000 $250 40% $15,000 $4,750 $19,750
Total 20,000 $30,000 $9,500 $39,500
Total Construction Use Tax
Auto Dealerships + Commercial Scenario 1 108,000 - - $122,400 $38,760 $161,160
Auto Dealerships + Commercial Scenario 2 108,000 - - $122,400 $38,760 $161,160
Total Building
Tax Collected (1)
Rec Center Fund
Tax Collected (2)
% Material CIF
Total
Windsor Use
Construction Description Sq Ft Cost / Sq Ft Cost Tax Collected
PAGE 8
personal property estimates. For commercial retail and office, BBC gathered personal property
data on properties throughout Larimer County that resemble the expected scenario
development. The Town mill levy is 12.03, which is applied to both real and personal property.
Figure 5 below presents the assessed value and tax revenues for real and personal property
under the different scenarios. The auto dealerships are estimated to generate over $40,000 in
annual property tax revenues, with pad development in either Commercial Scenario 1 or
Commercial Scenario 2 contributing an additional $8,000. Figure 6 compares existing property
tax revenue ($10,000) to the projected annual property tax amounts associated with the
development. The project is expected to increase property tax by $40,000 per year.
Figure 5.
Projected Annual Property Tax Revenue
Note: (1) Commercial assessed value is 29% of actual value.
Source: BBC Research & Consulting.
Figure 6.
Annual Property Tax Revenue Comparison—Current and Projected
Note: (1) Commercial assessed value is 29% of actual value.
Source: Larimer County Assessor; BBC Research & Consulting.
Other annual municipal revenues. BBC utilized the Town’s existing fiscal model to estimate
other recurring municipal revenues associated with site development and operation, as well
as municipal expenditures (see following page). These revenues include charges for services,
fines and forfeitures, licenses and permits, intergovernmental revenue and other
+ +
Commercial Commercial
Assessed Value (1)
Real Property $3,153,911 $3,733,911 $3,733,911
Personal Property $261,000 $304,500 $348,000
Annual Property Tax Collected
Real Property $37,942 $44,919 $44,919
Personal Property 3,140 3,663 4,186
Total Annual Property Tax Collected $41,081 $48,582 $49,105
Auto Dealerships Scenario 2
Auto Dealerships Auto Dealerships
Property Tax Description Scenario 1
Current Conditions $833,920 $10,032 -
Auto Dealerships + Commercial Scenario 1 $4,038,411 $48,582 $38,550
Auto Dealerships + Commercial Scenario 2 $4,081,911 $49,105 $39,073
Tax Revenue
Assessed Tax Revenue Increase Over Current
Property Tax Situation Value (1) (General Fund)
PAGE 9
miscellaneous tax revenues.9 The Town’s fiscal model derives the commercial component of
these additional revenues on a per full-time employee basis. The Town’s model assumes each
full-time employee will generate $208.36 in other municipal revenues. 10
The auto dealerships provided BBC with estimates for the number of full-time employees. For
number of full-time employees under various commercial development scenarios, BBC used
400 square feet per employee for commercial retail and 250 square feet per employee for
office space.11 Figure 7 shows the anticipated number of full-time employees on the
development under various situations and the corresponding annual municipal revenues
generated, which are not captured elsewhere in the revenue model.
The Town is expected to collect an additional $40,000 per year in General Fund revenues as a
result of the auto dealerships operational activity.12 The inclusion of commercial activity
increases the amount to roughly $55,000 per year under both commercial development
scenarios.
Figure 7.
Other Annual Municipal
Revenues
Note:
It is assumed that all other annual
municipal revenues support the Town of
Windsor General Fund.
Source:
Town of Windsor Fiscal Model Output;
BBC Research & Consulting.
Capital expansion fees. The Town assesses capital expansion fees on new construction.
Capital expansion fees are assessed for sewer plant investment, water plant investment, storm
drainage and road impacts. These fees are an important revenue source for Town capital
projects. Capital expansion fees assessed on the development will generate substantial
revenue for the Town, estimated to be between $830,000 and $840,000 depending on the pad
development use mix (retail vs. office). The auto dealerships are estimated to account for
roughly three-quarters of capital expansion fee revenues ($615,000). Figure 8 on the
following page presents the revenue generated from each capital expansion fee.
9 Only revenues not captured elsewhere in the model are included. See footnote 10 (below) for additional details.
10 In the Town’s fiscal model, employees are used as a proxy for the scale of a commercial operation, production of certain
municipal revenues and demand for municipal services. BBC excluded the following the following revenues from the annual
municipal revenues calculation, so not to double count revenues: building permits; planning fees; SAFEbuilt collection fees; and
traffic impact fees. These adjustments reduce the annual revenue per employee from $246.85 (default amount in Town’s fiscal
model) to $208.36 .
11 The square footage per employee values come from the Town of Windsor Fiscal Model default assumptions.
12 Other annual municipal revenues are assumed to support the Town of Windsor General Fund.
Development Scenario
Auto Dealerships Only 204 $42,505
Auto Dealerships + Commercial Scenario 1 254 $52,923
Auto Dealerships + Commercial Scenario 2 269 $56,049
Projected Number Town of Windsor
of Site FTE Municipal Revenues (1)
PAGE 10
Figure 8.
Capital Expansion Fees (One-Time)
Note: (1) Storm drainage fee is based upon the following equation:
New Growth Basin Impact Fee = (Impervious Rate Factor) X (New Growth Basin Impact Fee Factor) X (Area in sq ft)
Commercial Impervious Rate Factor = 0.95, New Growth Basin Impact Fee Factor = $0.1838 per sq ft.
Source: Town of Windsor Development Fee Schedule 2015; BBC Research & Consulting.
Permit fees. Town building inspections are completed by a private contractor.13 BBC consulted
the contractor to estimate building and electrical permit fees associated with the development.
The Town receives 25 percent of the administered building, electrical and plan review fees.
Figure 9 displays the estimated building, electrical and plan review fees, as well as the revenues
that would accrue to the Town.14 Permit fees paid by the auto dealerships are estimated to total
over $7,500, with total development permit fees expected to generate $11,000, conditional on
specific pad development characteristics.
13 The Town of Windsor contracts with SAFEbuilt for building permits.
14 BBC removed building, electrical and planning fees from the Other Annual Revenues calculation to ensure no double
counting of permit related revenues. SAFEbuilt collection fees were also removed from the Other Annual Revenues calculation.
Sewer Plant Investment Fee
Auto Dealership Meter Size - 1.5" $16,808 3 $50,424
Commercial Pad Development Meter Size - 1" $7,128 4 $28,512
Total 7 $78,936
Water Plant Investment Fee
Auto Dealership Meter Size - 1.5" $30,801 3 $92,403
Commercial Pad Development Meter Size - 1" $13,062 4 $52,248
Total 7 $144,651
Storm Drainage Fee (1)
Auto Dealership 30 Impervious Acres 1,306,800 $228,180
Commercial Pad Development 9.9 Impervious Acres 95% x 0.1838 x sq ft 431,244 $75,300
Total 39.9 Impervious Acres 1,738,044 $303,480
Road Impact Fee per 1,000 sq ft
Auto Dealership $2,760 88,000 $242,880
Commercial Scenario 1
General Retail $3,476 20,000 $69,520
Commercial Scenario 2
General Retail $3,476 10,000 $34,760
Office General $2,840 10,000 $28,400
Total Capital Expansion Fees
Auto Dealerships $613,887
Auto Dealerships + Commercial Scenario 1 $839,467
Auto Dealerships + Commercial Scenario 2 $833,107
Assumption
Capital Expansion Fee Type Detail or Sq Ft or Sq Ft Fee
Cost per Structure # of Structures Total
PAGE 11
Figure 9.
Permit Fee Revenue (One-Time)
Note: (1) Building permit fees are based upon the structure’s valuation. SAFEbuilt provided general
estimates, which BBC then adjusted based on anticipated valuation.
(2) Electrical permit fees are based upon the structure’s valuation and electrical requirements.
SAFEbuilt provided general estimates, which BBC then adjusted based on anticipated valuation.
Source: BBC Research & Consulting.
CAC special fees. As discussed above, the land parcel under consideration for development is
located in the Corridor Activity Center (CAC). Town of Windsor Ordinance No. 2012-1440
identifies CAC parcels and presents the total to be assessed on each. Figure 10 shows the original
CAC fee total for each parcel, the current total amount owed (3.05 percent annual inflation
applied—2012 original year) and the expected one-time payment due to the Town of Windsor;
the CAC fee will be completely repaid in seven years.
Figure 10.
CAC Special Fees (One-Time)
Note: (1) Adjusted for inflation at an annual rate of 3.05% as stated in the Town of Windsor Ordinance, original year was 2012. Totals represent
the net present value in 2015 dollars.
(2) Assumes repayment of special fees over seven year period. Actual payments are in quarterly installments. Annual payment total is the
net present value in 2015 dollars.
Source: Town of Windsor Ordinance NO. 2012-1440; BBC Research & Consulting.
Building Permit Fees (1)
Auto Dealership $13,022
Commercial Pad Development $6,543
Electrical Permit Fees (2)
Auto Dealership $8,970
Commercial Pad Development $2,760
Plan Review Fees
Auto Dealership $8,464
Commercial Pad Development $4,253
Total Permit Fees
Auto Dealerships $30,456
Auto Dealerships + Commercial Scenario 1 / Scenario 2 $44,012
Total Permit Fee Revenue Collected by Town (25% of Building, Electrical, Plan Review Fees)
Auto Dealerships $7,614
Auto Dealerships + Commercial Scenario 1 / Scenario 2 $11,003
Development Fee Type Detail Tax Collected
Assumption General Fund
65% of Building Permit Fee
Independent Calculation
Independent Calculation
Land Parcel
22.8 Acre Parcel (North) $189,847 $207,753 $29,679
30.0 Acre Parcel (South) $127,828 $139,885 $19,984
Total $317,675 $347,638 $49,663
Original Fee 2015 Fee 2015 Annual
Total Amount Total Amount (1) Payment Amount (2)
PAGE 12
Revenue Summary. Figure 11 presents a summary of annual municipal revenues under various
development scenarios. Each scenario anticipates the auto dealership and commercial
retail/office space development to contribute significantly to the Town of Windsor’s General
Fund, Capital Improvement Fund and Community and Recreation Center Fund. Under the most
conservative development scenario (auto dealership development only), the Town of Windsor is
estimated to collect over $240,000 in annual taxes, excluding the CAC fee. With commercial
retail/office space development, annual tax revenues are estimated to be between $360,000 and
$455,000.
Figure 11.
Annual Revenue Summary
Source: BBC Research & Consulting.
In addition to annual municipal revenues, the development would lead to significant one-time
payments to the Town. Figure 12 shows the contribution to various funds under the three
development scenarios, ranging from $740,000 to $1 million. The CAC total fee amount is
presented independently and would result in an additional $350,000, paid over seven years.
Figure 12.
One-Time Fiscal Revenue Summary
Note: (1) Adjusted for inflation at an annual rate of 3.05% as stated in the Town of Windsor Ordinance, original year was 2012. Totals represent
the net present value in 2015 dollars.
Source: BBC Research & Consulting.
Development Scenario
Auto Dealerships Only $155,684 $48,064 $38,051 $241,799
Auto Dealerships + Commercial Scenario 1 $263,602 $108,064 $85,551 $457,218
Auto Dealerships + Commercial Scenario 2 $222,251 $78,064 $61,801 $362,116
Annual
General Fund
Annual Town
of Windsor
Tax Collected Tax Collected
Annual CIF
Tax Collected
Annual Rec
Center Fund
Tax Collected
Development Scenario
Auto Dealerships Only $7,614 $335,280 $29,260 $371,007 $743,161
Auto Dealerships + Commercial Scenario 1 $11,003 $122,400 $38,760 $839,467 $1,011,630
Auto Dealerships + Commercial Scenario 2 $11,003 $122,400 $38,760 $833,107 $1,005,270
CAC Fee (1)
CAC Fee (Collected Over 7 Years) - - - - $347,638
General Fund CIF
Rec Center
Fund
Town of
Windsor
Tax Collected Tax Collected Tax Collected Tax Collected
Enterprise
Funds (1)
Tax Collected
PAGE 13
Municipal Expenditures
BBC coordinated with the Town of Windsor to utilize the Town’s existing fiscal model for
estimating municipal expenditures. Town expenditures related to the development are
forecasted on a full-time employee basis, meaning that the model distributes and estimates
Town expenditures based upon the number of employees expected to work at the site.
The Town of Windsor fiscal model assumes $658.58 of commercial related municipal
expenditure per full-time employee. Figure 13 presents projected full-time employees and the
estimated annual cost to the Town of Windsor under various scenarios.15
Municipal expenditure related only to the auto dealerships is estimated at around $135,000 per
year. The highest anticipated fiscal expenditure is roughly $175,000 per year, which includes an
additional 65 full-time employees, associated with commercial/office development.
Figure 13.
Annual Fiscal Expenditure
Summary
Source:
Town of Windsor Fiscal Model Output;
BBC Research & Consulting.
Summary of Fiscal Impact
BBC estimates that the auto dealerships and associated commercial retail/office space will
produce net fiscal benefits to the Town of Windsor under all development scenarios considered
for this analysis (Figure 14). The auto dealerships are expected to generate an annual net fiscal
benefit of over $105,000. Including the CAC fee, each development scenario is estimated to
generate at least $1.1 million in one-time tax and fee revenues for the Town of Windsor.
Figure 14.
Overall Fiscal Summary
Note: (1) CAC fee included in one-time taxes collected, however, this fee is expected to be paid over seven years.
Source: BBC Research & Consulting.
15 The Town of Windsor Fiscal Model also estimates the number of employees expected to reside within the Town (any
existing Windsor residents working at the auto dealerships would be excluded), which is then used to calculate the Town’s
increased residential expenditure. BBC has not incorporated the residential expenditure component of the Town’s model
because the revenue model does not quantify residential revenues (property tax, sales tax, fines and fees, etc.). Additionally,
given the close proximity of the auto dealerships’ current locations and the proposed site, it is unlikely that the auto
dealerships existing labor force would relocate to the Town of Windsor.
Development Scenario
Auto Dealerships Only 204 $134,350
Auto Dealerships + Commercial Scenario 1 254 $167,279
Auto Dealerships + Commercial Scenario 2 269 $177,158
Municipal Expenditures
Projected Number Town of Windsor
of Site FTE
Development Scenario
Auto Dealerships Only $241,799 $134,350 $107,449 $1,090,799
Auto Dealerships + Commercial Scenario 1 $457,218 $167,279 $289,938 $1,359,268
Auto Dealerships + Commercial Scenario 2 $362,116 $177,158 $184,958 $1,352,908
Revenues Expenditures Outcome Tax Collected (1)
Annual Municipal Annual Municipal Net Municipal One-Time
PAGE 14
Other public benefits. In addition to the model’s quantified fiscal revenue estimates, the
development of the auto dealerships and commercial retail/office space will generate secondary
benefits that will stimulate the local economy and lead to additional fiscal revenue sources. From
data provided by Fort Collins DCJR, customers travel throughout the western United States for
automotive purchases. With customers traveling from as far away as North Dakota, it is likely
that a portion of customers to the auto dealerships will spend a night within the Town of
Windsor, generating lodging and dining expenditures that result in taxable revenues. Even on a
local customer scale, customers visiting the dealerships are likely to frequent nearby retail and
dining (existing and/or future) while visiting the auto dealerships. Also, the employees working
at the auto dealerships, retailers or offices will stimulate the local economy through regular meal
purchases and retail shopping.
The Westgate Retail Center, located directly north of the proposed development, currently has
roughly 8,000 square feet of vacancy (40 percent of the entire property). Due to the increased
traffic volume associated with the auto dealerships, as well as the commercial space, it is likely
that the center will become a more attractive business location. One commercial real estate
broker stated that any non-competing development would be welcomed, as properties and
businesses located off of the Interchange are in need of increased traffic and patronage. Each
new business to the Town of Windsor represents additional tax revenue through sales, property
tax and permitting fees.
Lastly, a Fiat auto dealership will likely be constructed on the site, which is not expected to
impede the construction of commercial development. The 20,000 square foot Fiat auto
dealership would increase the annual net fiscal benefit to about $130,000 (auto dealerships
only), an increase of $25,000 per year. BBC also estimates the Fiat auto dealership would
generate around $165,000 in one-time tax and fee revenues.
We hope this analysis is useful in assessing the net fiscal consequences of the auto dealership
and commercial retail/office space development. Please feel free to contact us with any
questions.
Sincerely,
Adam D. Orens
Managing Director