Has the City performed any financial analysis of the impacts that the zoning changes would have on the City’s tax revenue if the Fountain Valley Crossings Specific Plan is approved?
Yes. In December 2010, the City took the first step in assessing the financial viability and potential of the light manufacturing district that makes up the proposed Fountain Valley Crossings Specific Plan area, by hiring The Concord Group to perform a Strategic Market Analysis. The Strategic Market Analysis that was delivered by The Concord Group provided findings, conclusions and recommendations as to how the Specific Plan area can be re-envisioned to provide greater tax revenue for the City though a master plan that allows for land uses that the market wants. This study was updated and the findings confirmed subsequently in 2014.

In 2015, the City received approximately $2.2 million is sales tax revenue from the businesses within the proposed Specific Plan area. Currently, property owners are limited in the retail businesses that are allowed under the light manufacturing zoning. By allowing more retail businesses to exist in the proposed Specific Plan area the sales tax revenue will be able to increase. Also important to note regarding retail businesses is that the Strategic Market Analysis performed by The Concord Group found that there is demand in the City for an additional 500,000 square feet of retail space. But the retail space is unlikely to be realized if there are not enough customers during all hours of the day and week to patronize the businesses. For this reason, the Strategic Market Analysis found and recommended that a limited amount of residential land uses are also important to include in new vision for the proposed Specific Plan area.

Also in 2015, the City saw approximately $550,000 in property tax revenue. It is important to note that the new Hyundai building, which only makes up 18-acres of the 155-acre Specific Plan area, generates approximately $200,000 in property tax revenue alone. This demonstrates the large difference in the contribution to the City’s tax revenue between properties that have received new investment and properties that have not. The Strategic Market Analysis found that in the future there will be about 350,000 square feet of new office space desired in the City.

The proposed Fountain Valley Crossings Specific Plan generally adds the ability for property owners to lease their property to more types of businesses than they can under the current light manufacturing zoning. The proposed new flexibility in additional businesses that are allowed would increase the value of the property for the property owner. Additionally, retail businesses payer higher rents than light manufacturing businesses do. Therefore property owners would also be able to receive higher rents if they chose to as well.

The City has also considered the costs of providing services if the proposed Fountain Valley Crossings Specific Plan is adopted and properties eventually start seeing new commercial, office and limited residential land uses. These services include police, fire, water, sewer, road maintenance, etc. In this assessment, it was found that the services would not need to be increased significantly and any increases in costs of services for the proposed Specific Plan area would be minimal.

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1. What is the Fountain Valley Crossings Specific Plan Project?
2. Will the roadways around the FV Crossings Specific Plan area be impacted by additional traffic if the limited amount of new land uses such as retail and residential are eventually added to the area?
3. Will the Fountain Valley Crossings Specific Plan introduce “Bella Terra style” housing density to the area?
4. Why has the City embarked on the process of creating a proposed FV Crossings Specific Plan?
5. Doesn’t the City value the current businesses in the proposed FV Crossings Specific Plan area?
6. Is it true there will be 700 residential units allowed in the proposed Specific Plan area?
7. Will 20% of the housing units in the proposed Specific Plan area be required to be low income units?
8. What is the impact of the proposed Specific Plan on the City’s budget?
9. Has the City performed any financial analysis of the impacts that the zoning changes would have on the City’s tax revenue if the Fountain Valley Crossings Specific Plan is approved?
10. How is the Specific Plan being funded?
11. Will parking, water supply and demand, sewer capacity, school district capacity be considered?
12. Does the City believe that the Specific Plan will cause changes to occur in the district?
13. Can the City use eminent domain?
14. I understand that there are advantages for property owners if the proposed Specific Plan is adopted, what are the advantages for current residents?
15. Will the Clear Channel Outdoor Electronic Message Center Sign that was proposed on the City’s water tank property be approved as part of the proposed FV Crossings Specific Plan?
16. Height is a concern for future buildings within the proposed FV Crossings Specific Plan area. How will these concerns be accommodated?
17. How will open space be addressed and provided in any new development?
18. How will the City ensure the quality of future projects that may be constructed or rehabilitated?
19. What are form-based codes?
20. How many other cities have form-based codes in place?