PhaseII_Economic_Impact_Study_March31final

Economic Impact Analysis of Alliance California and the San Bernardino International Airport (former Norton Air Force Base) Phase II (2011-2014) Submitted on 03/31/15 to: Inland Valley Development Agency Prepared in partnership by: Principal Investigators: Barbara Sirotnik, Ph.D Institute of Applied Research Calif State University, San Bernardino Morassa S Danai M.A Morteza Rahmatian, Ph.D California State University, Fullerton Alliance California and SBIA Economic Impact Study TABLE OF CONTENTS ECONOMIC IMPACT STUDY I Introduction……………………… II Study Summary……………………………………………………………… III IVDA and SBIAA IV Socioeconomic Overview of San Bernardino and the Inland Empire IV.A San Bernardino County Economy IV.B Inland Empire Economy V Study Approach and Model Assumptions 10 VI Economic Impacts of the Base Reuse and IVDA & SBIA 12 VI.A Economic Impacts of Business Development Around the Airport Area 12 VI.B Capital Spending (Construction and Machinery) 15 VI.C Economic Impacts of Operating and Maintenance Spending at the SBIA &IVDA 17 VI.D Economic Impacts of Increases in Assessed Valuation 18 VI.E Grand Total of Economic Impacts 19 VII Conclusion 20 VIII References 21 IX Appendices 22 IX.A Economic Impacts on Top Ten Industries .22 IX.B State/Local and Federal Tax Impacts .25 IX.C List of Detailed Data Used for the Analysis 26 i Alliance California and SBIA Economic Impact Study TABLES, ECONOMIC IMPACT STUDY Table 1: Snapshot of SB County Economy Table 2: SB County Top Ten Industries (2013) Table 3: SB County Top Ten Employers (2013) Table 4: Inland Empire Industry Growth (2010 – 2014) Table 5: Direct Employment by Businesses in and Around Airport 2002-2010 13 Table 6: Direct Employment by Businesses in and Around Airport 2002-2015 13 Table 7: Economic Impact of Business Development………………… ……………………… 14 Table 8: Total Capital Spending by IVDA and SBIAA (2011-2014)………………………… 15 Table 9: Capital Spending (Construction and Machinery) 16 Table 10: Economic Impacts of Capital Spending (Construction and Machinery) 16 Table 11: Impacts from Loss of Household Income 17 Table 12: IVDA & SBIA Operating and Maintenance Spending (2011 - 2014) 17 Table 13: Impacts from Airport Operating and Maintenance Spending 18 Table 14: Increase in Assessed Value 18 Table 15: Impact from Increase in Assessed Value 18 Table 16: Grand Total Economic Impacts 19 Table 17: Grand Total Impacts on Top SB County Industries 19 Table 18: Summary of Total Impacts 20 ii Alliance California and SBIA Economic Impact Study Economic Impact Analysis of Alliance California and the San Bernardino International Airport (Former Norton Air Force Base) Phase II (2011-2014) Alliance California and SBIA Economic Impact Study I INTRODUCTION California State University, Fullerton in partnership with the Institute of Applied Research and Policy Analysis at California State University, San Bernardino are pleased to submit their report containing the findings of its Phase II (2011-2014) economic impact study to the Inland Valley Development Agency (“IVDA”) and San Bernardino International Airport Authority (“SBIAA”) The findings of this report will be potentially used by the IVDA to create and/or refine its 5-and 10-year business plans This Phase II study will be based on additional spending by SBIAA and IVDA toward development in and around the former Norton Air Force Base (“NAFB” or “the Base”) commonly known as Alliance California, as well as continued development and operation of the San Bernardino International Airport (“SBD” or “Airport”) in the following five areas:  Additional business development within the area surrounding the former NAFB  Capital spending, including infrastructure, building, and machinery & equipment (SBIAA and IVDA)  Operating and maintenance spending at SBD  Increase in assessed property values  Job creation and retention Phase I of the IVDA/SBIAA Economic Impact Study, which covered the period from 1994 to 2010, quantified the economic impacts associated with closure of NAFB In addition, the study reported economic impacts created by IVDA and the SBD in terms of jobs created, earnings and output; identified off-airport businesses and industry that use and depend on the Airport; and quantified the net economic contributions the Airport makes to the local community, region, and state The Phase I report indicated the total economic impacts of the base closure on the San Bernardino local economy were estimated to be:  Loss of 15,458 jobs  Loss of $1.5 billion (in 2009 dollars) in annual payroll  Loss of $1.9 billion (in 2009 dollars) in annual economic activity (about 3% of 2009 San Bernardino gross regional products i.e., GRP) The majority of impacts were expected to incur in sectors of employment and payroll only (federal government, military, and non-military) In addition, the Phase I study estimated economic benefits from business development, capital spending, SBD operating and maintenance spending, and increases in assessed valuation in the local San Bernardino economy The total economic impacts were estimated as:  Creation of 9,355 jobs  Generation of $500 million in annual payroll  Generation of $1.2 billion in annual economic activity (about 2% of 2009 San Bernardino GRP) Page 1, Economic Impact Study Alliance California and SBIA Economic Impact Study The majority of impacts were expected to occur in sectors of wholesale trade businesses, warehousing and storage, transport by air and construction of other new nonresidential II STUDY SUMMARY This Phase II study intends to provide a concise view of the economic impacts for the period 2011-2014 The principal goals of the IVDA include successful reuse of property in and around the former NAFB, ensuring that adequate access exists to and from the major transportation systems and SBD, changing the landscape, creating new jobs, increasing assessed valuation in the base reuse project area, enhancing aeronautical operations, and creating a safe and sustainable public airport The cumulative economic impacts (Totals of Phases I and II) of the four benefit categories i.e., business development, capital spending, operating and maintenance spending at Alliance California and SBD, and increases in assessed valuation on the SB economy are estimated to be:  Creation of 17,123 jobs  Generation of $1.29 Billion in annual payroll  Production of $3.6 Billion in annual economic activity (about 3.4% of 2013 SB GRP)  A total 2014 Assessed Valuation of over $5.6 Billion The majority of impacts are expected to occur in sectors of warehousing and storage, wholesale trade, retail-nonstore retailers (on-line shopping), air transportation, and real estate sectors The total economic impacts of the Phase I and Phase II studies can be summarized in the table below: Cumulative Economic Impacts of Phase I and Phase II Economic Impacts Phase I Total Phases I and II Employment 9,335 17,123 Annual Payroll $500 Million $1.29 Billion Annual GRP $1.2 Billion $3.6 Billion Page 2, Economic Impact Study Alliance California and SBIA Economic Impact Study III IVDA AND SBIAA The Inland Valley Development Agency (IVDA) is a regional Joint Powers Authority, formed in 1990, comprised of the County of San Bernardino and the cities of San Bernardino, Loma Linda and Colton The purpose of the IVDA is to effectively redevelop and reuse property in and around the former Norton Air Force Base, which includes approximately 14,000 acres of residential, office, commercial, industrial, agricultural, aviation and other private and public land uses The San Bernardino International Airport Authority (SBIAA) is a sister Joint Power Authority to the IVDA and is comprised of the County of San Bernardino and the cities of San Bernardino, Loma Linda, Colton and Highland The SBIAA was formed in 1992 with the purpose of overseeing and managing operations and maintenance of the San Bernardino International Airport (SBD) The 1994 closure of the Norton Air Force Base (NAFB) upset the San Bernardino (SB) County economy and caused a loss of 15,000 jobs The IVDA was formed with the purpose of quickly and effectively mitigating the adverse effects of the base closure and in partnership with the SBIAA, to guide reuse of the NAFB Base's reuse into a viable public airport The principal goals of the agencies are to change the landscape, create new jobs, increase assessed valuations, enhance aeronautical operations, and create a safe and sustainable public airport The agencies’ prime purpose and function has been to develop the mechanism and funding to: 1) Acquire property in and around the Norton Air Force Base and facilitate the successful reuse of the property, 2) Ensure that adequate access exists to and from the major transportation systems and the Air Base, 3) Create a safe and sustainable public airport, and 4) Promote economic development within the area surrounding the Air Base, which includes changing the landscape, creating new jobs, and increasing assessed valuations The economic and political landscape shifted on June 28, 2011 when Governor Brown signed into law ABx1 26, a bill which dissolved all California redevelopment agencies effective October 2011 This was followed by AB 1484 on June 27, 2012 ABx1 26 and AB 1484 (jointly, the “Dissolution Act”), eliminated redevelopment agencies statewide and required the dissolution and liquidation of the obligations and assets of the former redevelopment agencies Health and Safety Code Section 34176(a) gave the city that authorized creation of a redevelopment agency the option of retaining the redevelopment agency’s housing assets and functions, excluding amounts on deposit in the Low and Moderate Income Housing Fund The IVDA is a military base reuse joint powers authority created pursuant to Government Code Sections 6500, et seq., established in furtherance of Public Law 100-526, special State of California Legislation, and further codified pursuant to the Joint Exercise of Powers Agreement originally dated as of January 24, 1990 Since its formation in 1990, the IVDA has been an active regional enterprise and has engaged in a variety of base reuse, economic development, public Page 3, Economic Impact Study Alliance California and SBIA Economic Impact Study infrastructure, airport, environmental, and low and moderate income housing projects and programs in furtherance of replacing the jobs that were lost due to base closure and to revitalize the communities in the region On January 25, 2012, the IVDA Board adopted Resolution No 2012-03, under protest, declaring pursuant to Health and Safety Code Section 34173 to serve as the successor agency to the IVDA, and to serve as the successor housing agency, should the IVDA be determined to be a “redevelopment” agency In April 2012 and in December 2012, IVDA filed suits against the state Later, the IVDA, DOF and the State Controller arrived at and executed a settlement on February 27, 2014 in which both cases were dismissed Under the terms of the settlement, the IVDA agreed to continue to comply with its obligations as a Successor Agency under the dissolution law with respect to those activities previously undertaken through its exercise of redevelopment powers The DOF agreed not to contest IVDA’s status and existence as a Military Base Reuse JPA and approved certain enforceable obligations for capital projects in process The IVDA Military Base Reuse JPA continues to exist and implement projects and programs pursuant to its powers as a public joint powers authority – effectively the powers inherent in its member entities as cities and a county The February 27, 2014 settlement agreement was a condition precedent to completion of a comprehensive $240 million tax allocation bond refinancing which IVDA successfully placed on May 15, 2014 This refinancing was rated A- by Standard and Poor’s and consolidated all IVDA short and long term debt into a stable and level debt service structure over a 30 year term The SBD serves the San Bernardino/Riverside metropolitan area with about four million people living within a 60-minute drive Readily ringed by Interstate Freeways I-10, I-215, and I-210, with close proximity to I-5 and Highways 60 and 91, SBD is also within two miles of a major BNSF Intermodal Rail Facility The current SBIAA has a proposed annual budget of $53 million The former NAFB property surrounding the airport, a three-mile radius beyond the airport, is overseen by the IVDA Several nationally recognized retail, food and lodging establishments are located within two miles of SBD, ready to serve future passengers The IVDA has a $29 million proposed budget as a post-development successor agency and a separate proposed $34 million budget for its operation as a joint powers agency The two agencies are operating separately, but coordinate and cooperate on various projects The IVDA, for instance, allocated $23 million for the International Arrivals Facility at the airport1 http://www.pe.com/articles/airport-753840-burrows-ivda.html Page 4, Economic Impact Study Alliance California and SBIA Economic Impact Study IV SOCIOECONOMIC OVERVIEW OF SAN BERNARDINO COUNTY AND THE INLAND EMPIRE IV.A SAN BERNARDINO COUNTY ECONOMY The reuse of NAFB and conversion of SBD and the development of commercial and industrial businesses around the airport have had definite economic impacts within the County of San Bernardino, many of which will go beyond the demand for aviation services and business centers Additionally, the social and economic factors within the whole Inland Empire (consisting of San Bernardino and Riverside Counties) will have a substantial effect on the Airport In this section, we briefly summarize the current economic conditions in the San Bernardino County and Inland Empire, including recent trends across several key variables According to the latest Impact Analysis for Planning (IMPLAN) Model 2013, the total gross regional product (GRP) of San Bernardino County is estimated to be about $70.7 billion (about one half of the Inland Empire economy i.e., $126.7 billion, and 5.7% of the State at $2,206 billion) Table presents a snapshot of the County’s economy The total value added is the gross regional product derived from the income paid to the owners of the factors of production in the model year The total final demand is gross regional product derived from the sale or production value of goods & services by final users about 85 % of which came from household purchases in the model year Table A Snapshot of SB County Economy Industry Description Value in 2013 Final Demand Value in 2013 Gross Regional Product $70,647,982,189 Households $60,211,357,445 State/Local Total Personal Income $67,695,870,000 Government $13,745,832,176 Total Employment 891,893 Federal Government $10,991,862,758 Number of Industries 456 Capital $8,456,361,430 Land Area (Sq Miles) 20,062 Exports $49,226,184,545 Population 2,088,371 Imports -$68,272,544,290 Total Households 624,186 Institutional Sales -$3,711,071,811 Average Household Income2 $108,455 Total Final Demand: $70,647,982,189 *IMPLAN Model 2013 (SB County) Table (Continued) A Snapshot of SB County Economy Value Added Value in 2013 Employee Compensation $38,376,511,641 Proprietor Income $4,297,847,304 Other Property Type Income $21,974,599,196 Indirect Business Taxes $5,999,024,047 Total Value Added $70,647,982,189 Average household income in IMPLAN Model is based on personal income and is different from Census “Median Household Income.” The Census median income for SB County is estimated at $54,090 Personal income includes government and private retirement income, social insurance transfer, rental income, income from financial services, employer health benefits for health insurance, life insurance, private saving plan and etc http://quickfacts.census.gov/qfd/states/06/06071.html Page 5, Economic Impact Study Alliance California and SBIA Economic Impact Study Table presents the top ten industries with their corresponding employment, labor income, and output within the SB County Wholesale trade business sector has the highest output followed by real estate, state, and local government Table SB County Top Ten Industries (2013) Industry Description Employment Labor Income Output Employment and payroll of local govt, education 49,681 $3,804,250,000 $4,091,655,000 Employment services 45,270 $1,085,857,000 $1,834,088,000 Real Estate 39,238 $469,367,800 $6,994,726,000 Wholesale trade 38,910 $2,399,283,000 $8,593,514,000 Limited-service restaurants 31,090 $574,850,700 $1,638,009,000 Individual and family services 29,041 $427,608,300 $833,319,600 Employment and payroll of local govt, non-education 27,007 $2,417,557,000 $2,616,543,000 Truck transportation 26,177 $1,556,488,000 $3,854,735,000 Full-service restaurants 22,419 $467,142,100 $1,067,983,000 Employment and payroll of federal govt, military 21,707 $1,675,147,000 $4,350,467,000 *IMPLAN Model 2013 (SB County) Table presents the top ten employers in SB County in 20133 Table SB County Top Ten Employers (2013) Employer # of Employees County of San Bernardino 19,000 Stater Bros Markets 18,221 U.S Army Fort Irwin & National Training Center 13,805 Loma Linda University 13,805 U.S Marine Corps Air Ground Combat Center 12,846 United Parcel Service 8,600 San Bernardino City Unified Schools District 8,574 Ontario International Airport 7,695 Loma Linda University Medical Center 6,147 Kaiser Permanente (Fontana only) 6,000 Total 114,333 San Bernardino’s 2013 Comprehensive Annual Financial Report Page 6, Economic Impact Study Alliance California and SBIA Economic Impact Study Impact Type Direct Effect Indirect Effect Induced Effect Total Effect Table 11 Impacts from Loss of Household Income Employment Labor Income Value Added -52 -$2,020,502 -$3,781,994 -12 -$430,826 -$818,292 -12 -$456,536 -$847,276 -75 -$2,907,864 -$5,447,562 Output -$6,170,086 -$1,395,240 -$1,400,731 -$8,966,056 The total jobs losses from this category are estimated at 75 with a total output reduction of about $9 million VI.C Economic Impacts of Operating and Maintenance Spending At the IVDA & SBIA Based on the information received from the IVDA and SBIAA financial audit reports from 20112014, the total annual operating and maintenance spending related to the IVDA and SBIA were distributed into different SB county industries as presented in Table 12 Please see Appendix IX.C for more details Table 12 IVDA & SBIA Operating and Maintenance Spending (2011-2014) Sector 2011 2012 2013 2014 Payroll $1,722,049 $3,253,443 $3,211,267 $3,284,698 Utilities $924,447 $1,014,756 $859,460 $1,391,645 Insurance $997,432 $866,252 $363,276 $288,745 Gov $349,981 $332,771 $369,705 $339,602 Miscellaneous Prof $211,927 $1,000,179 $134,288 $141,115 Professionals Services $7,694,398 $3,085,702 $2,373,950 $2,578,176 Communication $130,900 $130,812 $139,396 $177,269 Maintenance & Repair $431,424 $283,943 $346,941 $477,998 Grand Total $12,462,557 $9,967,859 $7,798,283 $8,679,248 Table 12 presents the modeling results of the economic impacts from these spending This category of spending is expected to create 455 jobs with additional total output of $54 million Page 17, Economic Impact Study Alliance California and SBIA Economic Impact Study Table 13 Impacts from Airport Operating and Maintenance Spending Impact Type Employment Labor Income Value Added Direct Effect 229 $14,470,320 $14,789,955 Indirect Effect 83 $3,150,992 $4,758,348 Induced Effect 144 $5,510,919 $10,228,707 Total Effect 455 $23,132,231 $29,777,010 Output $28,989,527 $8,345,640 $16,909,040 $54,244,207 VI.D Economic Impacts of Increases in Assessed Valuation Table 14 presents the total increase in assessed property values by year This table was constructed based on the information obtained from the February 5, 2015 RSG “Better Communities, Bolder Futures, 2014-2015 Property Tax Revenue Verification and Projections.” Table 14 Increase in Assessed Value Year 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 Valuation Incremental value $5,349,065,661 $5,186,558,324 $5,127,581,874 $5,293,560,696 $5,647,450,645 $3,788,235,723 $3,625,728,386 $3,566,751,936 $3,732,730,758 $4,086,620,707 For the modeling purposes, the additional revenue received from the increase in assessed values was multiplied by the local property tax ratio and then distributed respectively between State/Local government non-educational spending (70%), and educational spending (30%), Table 15 presents the modeling results from this category The increase in assessed values created 2,395 jobs with additional output of $253 million Impact Type Direct Effect Indirect Effect Induced Effect Total Effect Table 15 Impact from Increase in Assessed Value Employment Labor Income Value Added 1,660 $132,942,939 $148,783,525 75 $2,929,573 $4,923,975 660 $25,328,454 $47,021,636 2,395 $161,200,965 $200,729,136 Page 18, Economic Impact Study Output $166,747,847 $8,569,678 $77,720,112 $253,037,637 Alliance California and SBIA Economic Impact Study VI.E Grand Total of Economic Impacts Table 16 presents the grand total impacts of the four benefit categories (business development, capital spending, SBD operating and maintenance spending, and increase in assessed valuation) in the SB economy Overall, these categories are estimated to create about 17,123 jobs and to contribute to an additional output (total spending of about $2.4 billion dollars or 3.4% of 2013 SB GRP) Table 16 presents the distribution of these impacts on the top ten SB County industries The majority of impacts are expected to incur in sectors of warehousing and storage, wholesale trade, retail-nonstore retailers, air transportation, real estate services Impact Type Direct Effect Indirect Effect Induced Effect Total Effect Table 16 Grand Total Economic Impacts Employment Labor Income Value Added Output 10,947 $552,545,257 $998,875,957 $1,652,941,146 2,892 $111,855,630 $217,807,543 $354,652,540 3,284 $126,037,328 $233,956,226 $386,728,875 17,123 $790,438,215 $1,450,639,727 $2,394,322,562 Table 17 Grand Total Impacts on Top Ten SB Industries Industry Description Employment Labor Income Warehousing and storage 2,995 132,754,162 Wholesale trade 2,567 164,404,898 Retail - Nonstore retailers 2,239 48,785,308 Air transportation 1,414 62,698,388 Real estate 660 8,197,718 Employment and payroll of local govt, non-education 624 58,011,620 Employment and payroll of local govt, education 569 45,265,342 Employment services 480 11,959,919 Limited-service restaurants 274 5,266,118 Construction of other new nonresidential structures 224 14,832,530 Output 300,449,834 574,867,951 299,613,415 295,434,487 123,975,031 62,786,477 48,685,072 20,381,493 15,087,471 38,288,377 Please see the Appendix IX.B for the impact on state/local and federal taxes Among all the tax categories indirect business tax contributions alone is estimated to be about $242 million Page 19, Economic Impact Study Alliance California and SBIA Economic Impact Study VII Conclusion This Phase II study intends to provide a concise view of the economic impacts for the period 2011-2014 The principal goals of the IVDA include successful reuse of property in and around the former NAFB, ensuring that adequate access exists to and from the major transportation systems and SBD, changing the landscape, creating new jobs, increasing assessed valuation in the base reuse project area, enhancing aeronautical operations, and creating a safe and sustainable public airport The grand total impacts of the four benefit categories (business development, capital spending, SBD operating and maintenance spending, and increase in assessed valuation) in the SB economy are estimated to be about additional 17,123 jobs, $790 million in annual payroll, and 2.4 billion in annual economic activity (about 3.4% of 2013 SB total gross regional product) The majority of impacts are expected to occur in sectors of retail-nonstore retailers, air transportation, construction of other new nonresidential, real estate, architectural, engineering, and related services As presented in Table 18 below, among all the spending categories, business development had the highest economic impacts with about 81% of additional jobs, 74% of additional labor income, and 84% of additional output to the SB County economy Table 18 Summary of Total Economic Impacts Employment Labor Income Value Added Output 13,871 $584,327,667 $1,192,514,176 $2,028,928,816 Spending Category Business Development Capital Spending (Construction & Machinery) 412 $22,609,448 $30,123,092 $62,374,168 Loss of Household Income -75 -$2,907,864 -$5,447,562 -$8,966,056 IVDA &SBIA Operating and Maintenance 455 $23,132,231 $29,777,010 $54,244,207 Increased in Assessed Value 2,395 $161,200,965 $200,729,136 $253,037,637 Grand Total Effect 17,123 $790,438,215 $1,450,639,727 $2,394,322,562 *The Grand Total effect is slightly different from the sum of all individual spending categories due to aggregation in the model The magnitude of the economic impact of IVDA and SBIAA airport spending is linked to the demand that is generated within the state for logistic, transportation and goods movement, including aviation services While the future amount of air traffic will be tied to the state’s tourism activities, much of the growth in aviation activity in SB is driven by its residents and businesses As population, employment, and income levels rise in the county so too does demand for airline travel, air cargo shipments, recreational flying, and other aviation-related activities Furthermore, the Los Angeles/Long Beach Port areas have already become more congested over the last few years and are expected to have even stronger growth in 2015 due to increase in cargo activities13 The SB Airport and trucking facilities offer an alternative that could partially fulfill this demand 13 Los Angeles County Economic Development Department (2014-2015 International Forecast) Page 20, Economic Impact Study Alliance California and SBIA Economic Impact Study VIII References Employment Development Department, December 4th, 2014 http://www.calmis.ca.gov/file/lfmonth/countyur-400c.pdf Inland Valley Development Agency, Board Presentation, June 11, 2014 Personal communications with staff at the Inland Valley Development Agency and San Bernardino International Airport Authority Report on Audit 2011-2014 for San Bernardino International Airport Authority Report on Audit 2011-2014 for Inland Valley Development Agency Riverside Area Economic Summary, December 10, 2014 U.S Bureau of Labor Statistics San Bernardino County IMPLAN Model 2013, Release December 10, 2014, Copy Right 2015 Page 21, Economic Impact Study Alliance California and SBIA Economic Impact Study XI APPENDICES XI.A Economic Impacts on Top Ten Industries Impacts from Business Development Impacts on Top Ten SB Industries Industry Description Employment Labor Income Output Warehousing and storage 2,984 132,237,248 299,279,957 Wholesale trade 2,551 163,401,598 571,356,809 Retail - Nonstore retailers 2,225 48,516,051 297,959,775 Air transportation 1,413 62,614,576 295,039,539 Real estate 581 7,214,393 109,104,094 Employment services 405 10,097,214 17,207,165 Limited-service restaurants 190 3,641,402 10,432,647 Full-service restaurants 165 3,581,432 8,232,593 Couriers and messengers 159 7,767,066 14,816,207 Hospitals 135 10,993,869 19,872,530 Impacts from Capital Spending (Construction & Machinery) on Top Ten SB Industries Industry Description Employment Labor Income Output Construction of other new nonresidential structures 224 $14,832,530 $38,288,376 Wholesale trade 22 $1,383,868 $4,928,493 Retail - Clothing and clothing accessories stores 10 $198,066 $765,720 Real estate $112,013 $1,693,983 Employment services $173,501 $295,671 Truck transportation $412,871 $1,017,042 Limited-service restaurants $127,717 $365,910 Retail - Miscellaneous store retailers $132,407 $243,341 Full-service restaurants $130,205 $299,300 Retail - General merchandise stores $172,311 $443,763 Page 22, Economic Impact Study Alliance California and SBIA Economic Impact Study Impacts from IVDA &Airport Operating and Maintenance Spending on Top Ten SB Industries Industry Description Employment Labor Income Output Architectural, engineering, and related services 166 10,907,404 19,040,513 Business support services 29 1,032,694 1,708,327 Employment services 25 626,438 1,067,543 Insurance agencies, brokerages, and related activities 24 1,052,652 3,638,336 Employment and payroll of local govt, non-education 14 1,345,616 1,456,371 Full-service restaurants 13 272,501 626,394 Real estate 12 150,901 2,282,089 Limited-service restaurants 12 230,612 660,706 Hospitals 659,605 1,192,303 Offices of physicians 597,073 815,387 Impacts from increased in Assessed Values on Top Ten SB Industries Industry Description Employment Labor Income Output Employment and payroll of local govt, non-education 609 56,666,004 61,330,105 Employment and payroll of local govt, education 569 45,265,342 48,685,072 Employment and payroll of state govt, non-education 96 11,294,557 12,152,300 Employment and payroll of state govt, education 83 6,591,482 7,087,754 Limited-service restaurants 70 1,352,829 3,875,867 Real estate 60 744,731 11,262,658 Employment services 44 1,097,663 1,870,581 Full-service restaurants 42 916,617 2,107,016 Individual and family services 39 602,615 1,158,392 Hospitals 37 3,039,418 5,494,056 Page 23, Economic Impact Study Alliance California and SBIA Economic Impact Study Impacts from Airport Payroll on Top Ten SB Industries Industry Description Employment Labor Income Output Water, sewage and other treatment and delivery systems $406,937 $1,102,208 Food services and drinking places $49,852 $135,980 Electric power generation, transmission, and distribution $231,267 $1,090,206 Real estate establishments $19,008 $197,700 Maintenance and repair construction of nonresidential structures $58,654 $126,376 Offices of physicians, dentists, and other health practitioners $79,152 $136,956 Private hospitals $71,448 $141,506 Retail Stores - Food and beverage $19,510 $36,587 Retail Stores - General merchandise $17,816 $33,320 Nursing and residential care facilities $17,846 $31,953 Impacts from Loss of household Income on Top Ten SB Industries Industry Description Employment Labor Income Output Limited-service restaurants -5 -$97,774 -$280,124 Real estate -5 -$59,508 -$899,944 Hospitals -5 -$373,962 -$675,975 Full-service restaurants -4 -$91,088 -$209,384 Offices of physicians -4 -$338,510 -$462,283 Individual and family services -4 -$53,647 -$103,123 Retail - Food and beverage stores -2 -$83,520 -$179,754 Retail - General merchandise stores -2 -$72,009 -$185,449 Personal care services -2 -$37,116 -$79,603 Nursing and community care facilities -2 -$81,135 -$137,136 Page 24, Economic Impact Study Alliance California and SBIA Economic Impact Study Appendix IX.B State/local and Federal Tax Impacts State and Local Tax Impacts of All Benefit Categories Description Dividends Social Ins TaxEmployee Contribution Social Ins TaxEmployer Contribution Tax on Production and Imports: Sales Tax Tax on Production and Imports: Property Tax Tax on Production and Imports: Motor Vehicle Lic Tax on Production and Imports: Severance Tax Tax on Production and Imports: Other Taxes Tax on Production and Imports: S/L NonTaxes Corporate Profits Tax Personal Tax: Income Tax Personal Tax: NonTaxes (Fines- Fees Personal Tax: Motor Vehicle License Personal Tax: Property Taxes Personal Tax: Other Tax (Fish/Hunt) Total State and Local Tax Employee Compensation Proprietor Income Indirect Business Tax Households Corporations $492,625 $1,114,747 $2,155,177 $99,428,790 $83,865,526 $2,064,880 $57,475 $15,244,189 $1,456,981 $7,227,350 $24,178,962 $4,402,348 $839,695 $321,750 $157,838 $3,269,924 $202,117,842 Page 25, Economic Impact Study $29,900,592 $7,719,975 Alliance California and SBIA Economic Impact Study Federal Tax Impacts of All Benefit Categories Description Employee Compensation Social Ins Tax- Employee Contribution Social Ins Tax- Employer Contribution Proprietor Income $43,280,909 Indirect Business Tax Households $2,270,742 $42,980,175 Indirect Bus Tax: Excise Taxes $19,373,590 Indirect Bus Tax: Custom Duty $8,021,346 Indirect Bus Tax: Fed NonTaxes $2,039,325 $30,577,439 Corporate Profits Tax $63,482,452 Personal Tax: Income Tax Total Federal Tax Corporations $86,261,084 $2,270,742 $29,434,262 $63,482,452 $30,577,439 Appendix IX.C List of Detailed Data Used for the Analysis IVDA & SB Airport Capital Spending 3rd Street Drainage Improvements $ 343,195.00 Airfield Electrical Upgrade $ 1,933,121.67 N/A Airport Pavement Rehab & Reconstruction $ 2,164,094.91 10/12/2011 Source of Fund (Capital Grant/Selling Bonds, Taxes, Fees) FAA US Department of Commerce EDA US Department of Transportation US Department of Commerce EDA Building 48 $ 3,776,508.67 11/9/2011 IVDA Local Funds Building 48 T L $ 325,010.00 3/28/2012 IVDA Local Funds Building 48 Solar $ 948,240.00 IVDA Local Funds Customs $ 3,093,327.80 N/A 4/16/2014 7/23/2014 9/24/2014 DFAS HVAC $ 304,764.00 2/22/2012 IVDA Local Funds DFAS Building $ 304,764.00 2/22/2012 DFAS Building Phase II $ 496,480.00 Active IVDA Local Funds US Department of Commerce EDA General Aviation Infrastructure Phase $ 268,915.00 5/28/2014 IVDA Local Funds, CMB General Aviation Infrastructure Phase $ 5,115,968.00 Active IVDA Local Funds, CMB Mt View Ave Widening - Demo $ 181,115.86 10/24/2012 2011 Bond Proceeds Mt View Ave Widening - Phase $ 9,928,612.96 3/12/2014 2011 Bond Proceeds Mt View Ave Widening - Phase $ 7,195,246.20 Active 2011 Bond Proceeds Museum $ 76,639.00 Parking Lot Infrastructure (Bldg 730 & 747) $ 7,262,785.25 Signage Improvements at Building 48 $ 45,501.00 Terminal Solar Power Project $ 3,095,200.98 Weatherization Phase $ 965,610.14 10/10/2012 Weatherization Phase $ 3,497,480.00 6/12/2013 Grand Total $ 51,322,580.44 Total Spending 2011 -2014 (SBIAA & IVDA) Total Value of Construction Notice of Completion Date Filed Page 26, Economic Impact Study 8/29/2013 N/A 6/8/2011 N/A 6/8/2011 IVDA Local Funds, CMB Loan Proceeds, Bonds Funds IVDA Local Funds US Department of Commerce EDA IVDA Local Funds CMB Loan Proceeds US Department of Commerce EDA US Department of Commerce EDA Alliance California and SBIA Economic Impact Study SB Airport Operating and Maintenance Spending General And Administrative (Based on fiscal year) 2011 2012 2013 379,517 501,498 337,553 613,624.00 546,498.00 551,518.00 469,333.00 691,995.00 575,167.19 541,239.00 582,524.00 615,966.00 410,765.00 517,565.00 240,958.00 130,718.24 129,529.00 134,699.00 8,700.00 13,210.00 10,900.00 51,735.42 13,932.00 11,223.00 Salaries and Wages Utilities/maintenance fees Law enforcement Control Tower Insurance US Customs (Govt) Director's fees Travel expense Meetings and Conferences Dues and subscriptions Office expense Advertising and marketing Professional services Legal Accounting Other Janitorial Telephone Miscellaneous Provision for bad debts Total $ 2014 440,683.00 1,021,623.00 536,754.00 550,529.00 124,779.00 139,053.00 9,600.00 6,998.00 20,129.42 24,161.44 47,303.48 8,573.00 13,753.84 43,985.00 3,928.56 8,907.00 27,881.00 3,285.00 6,403.00 19,280.00 40,740.18 5,556,816.00 115,515.15 102,400.60 27,803.00 515,059.40 498,475.00 44,520.30 17,043.95 275,340.00 404,390.00 25,140.00 17,424.00 491,498.00 367,131.00 33,500.00 67,097.02 96,202.00 541,118.00 9,217,114.95 70,786.00 87,279.00 4,624,836.00 8,931,821.54 79,152.00 23,875.00 130,465.00 3,474,106.70 106,486.00 19,442.00 $ $ $ 3,894,468.00 Maintenance and Operations Salaries and Wages Storm water monitoring Hazardous waste removal Janitorial Communications Miscellaneous Gas/Diesel/fuel Parts/supplies Maintenance/repairs Total $ 2011 1,216,433 1,950.00 745.00 62,050.04 19,467.81 2012 1,415,404 1,848.00 1,505.00 62,465.00 8,164.00 3,551.91 131,534.85 1,130.43 33,522.00 53,409.00 1,435,732.61 $ 1,577,447.43 Page 27, Economic Impact Study $ 2013 1,375,598 1,135.00 7,035.00 47,352.00 6,288.00 2014 1,358,952.00 1,200.00 3,298.00 91,153.00 11,620.00 35,876.00 103,412.00 771.00 22,701.00 286,357.00 1,576,696.00 $ 1,776,052.00 Alliance California and SBIA Economic Impact Study IVDA Operating and Maintenance Spending Salaries and Wages Utilities/maintenance fees Law enforcement Control Tower Insurance US Customs (Govt) Director's fees Travel expense Meetings and Conferences Dues and subscriptions Office expense Advertising and marketing Professional services Legal Accounting Other Janitorial Telephone Miscellaneous Provision for bad debts Total General And Administrative (Based on fiscal year) 2011 2012 2013 126,099 1,291,541 1,498,116 310,823.00 321,631.00 254,440.00 586,666.88 736,723.00 122,318.00 $ 2014 1,485,063.00 330,465.00 163,966.00 219,262.57 203,242.00 235,006.00 200,549.00 15,300.00 9,225.00 16,800.00 8,157.00 12,200.00 8,429.00 11,900.00 14,759.00 8,496.00 28,418.00 1,610.00 4,081.00 822,788.00 3,253.00 5,753.00 16,530.00 3,765.00 4,078.00 25,397.00 16,473.00 500,149.00 244,919.00 94,457.00 15,258.00 339,417.00 313,081.00 51,044.00 3,571.00 213,133.00 119,238.00 30,343.00 1,718.00 283,041.00 145,414.00 140,000.00 75,386.52 29,035.00 35,163.00 76,992.00 35,062.00 36,148.00 74,031.00 41,755.88 26,732.00 73,254.00 47,263.00 13,572.00 2,299,872.94 $ 4,273,575.38 $ 2,664,848.88 $ 2,944,204.00 Maintenance and Operations 2011 Salaries and Wages Storm water monitoring Hazardous waste removal Janitorial Communications Miscellaneous Gas/Diesel/fuel Parts/supplies Maintenance/repairs Total 2012 261,174.24 $ 261,174.24 2013 160,864.00 $ 160,864.00 Page 28, Economic Impact Study 2014 126,955.00 $ 126,955.00 130,218.00 $ 130,218.00 Alliance California and SBIA Economic Impact Study New Employment by Businesses in and around Airport 2002-2010 New Businesses Kohl’s Mattel Pep Boys Pactiv Medline San Bernardino Int’l Airport ODW Kohler Stater Bros Interline Kohls.com Royal Appliance TTI Leggett & Platt Jobs Created (Est.) 300 200 250 200 80 500 80 50 2,000 50 300 50 50 Phase Grand Total 4,110 Year Started 2002 2004 2005 2006 2006 2006 2008 2008 2008 2009 2010 2010 2010 New Employment by Businesses in and around Airport 2002-2015 New Businesses Kohl’s Mattel Pep Boys Pactiv Medline ODW Kohler San Bernardino Int’l Airport Stater Bros Interline Kohls.com Royal Appliance TTI Leggett & Platt Pepsi Cott Amazon.com Amazon.com Grand Total Jobs Created (Est.) 300 200 250 200 80 80 50 1,409 2,000 50 1,500 50 50 100 100 1,500 400 8,319 Page 29, Economic Impact Study Year Started 2002 2004 2005 2006 2006 2006 2008 2006 2008 2009 2010 2010 2010 2013 2013 2013 2014 Alliance California and SBIA Economic Impact Study SB Airport Additional Employees (2011-2014) Tenant Location Job Count AeroPro, LLC Hangar 763 19 Aviation & Defense, Inc Hangar 763 141 Bldg 938 20 Child Care Resource Center SBD Corporate Center 52 City of San Bernardino Fire Building 680 39 Bldg 302 50 County of San Bernardino Sheriff Hangar 695 35 County of San Bernardino - PID SBD Corporate Center 82 Durham School Services Bldg 759 200 Full Spectrum Plumbing, Inc Bldg 759 G & M Business Interiors Bldg 932 Guang Lin Café Bldg 610 Hillwood Bldg 759 Parking Lot Inland Empire Economic Partnership Bldg 48 10 Inland Valley Development Agency Bldg 48 11 Parking Lot Bldg 726, 757, 759 30 Cash Kern Building 759 Konstantine Enterprises Inc Building 932 Luxivair SBD Luxivair SBD Bldg 499 100 Storage Mercury GSE Parking Lot NTS Parcel B1-C 22 Bldg 104 Building 105, Bldg 466 29 Hangar 763 60 Bldg 56 Medical Clinic 100 PDC 45 San Bernardino International Airport Authority Bldg 48 17 San Bernardino Regional Emergency Training Parcel A-3 Bldg 466/Combat Camera California Redwood Products County of San Bernardino Fire Home Depot U.S.A J B Hunt Transport Inc Kelly Space & Technology, Inc Matich Corporation Max Racks Operation Grace/ Grace Chapel Public Safety Academy of San Bernardino Pulsar Aviation Services, Inc ReRubber SACHS Clinic -Norton San Bernardino Community College District San Manuel Band of Mission Indians SBIAA, Inc Stratus Aircraft Services, Inc Airfield 18 Hangar 674 Bldg 58 Technical Employment Training Page 30, Economic Impact Study Alliance California and SBIA Economic Impact Study T-Mobile Land for Cell Tower Land Unical Aviation, Inc East End GA Site 30 US National Forest Service Air Tanker Base 12 US National Forest Service Bldg & (DFAS) 200 Hangar 341 1505 Enterprise Dr Bldg 935 Total: 1409 Tortoise Shell Homes LLC Various Private Aircraft Owners Verizon California, Inc Western Wood Page 31, Economic Impact Study