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CC 05-17-2023 Item No. 1. FY 2023-23 Proposed Budget - Development Revenue Estimates_Desk Item
Development Revenue Estimates1 (5/17/2023) Project Revenue Type Sub‐Revenue 2023 2024 2025 2026 2027 2028 2029 2030 Grand Total Apple VP1 Ongoing Property Tax Increase2 79,000 80,647 82,342 84,032 84,032 85,847 495,900 Ongoing Sales Tax Increase3 9,000 9,811 10,078 10,505 10,505 10,810 60,710 Ongoing Transient Occupancy Tax4 ‐ One‐time Permit Fees Inspection/Plan Review 194,577 194,577 One‐time Planning Fee Advanced Planning Fee 222,930 222,930 One‐time Impact Fee BMR 4,496,925 4,496,925 One‐time Impact Fee Transportation 2,702,255 2,702,255 One‐time Impact Fee Park ‐ ‐ One‐time Construction Tax 552,753 552,753 Canyon Crossing Ongoing Property Tax Increase 14,000 14,292 14,592 14,892 14,892 15,213 87,881 Ongoing Sales Tax Increase 17,000 18,531 19,036 19,843 19,843 20,420 114,674 Ongoing Transient Occupancy Tax ‐ One‐time Permit Fees Inspection/Plan Review 121,678 121,678 One‐time Planning Fee Advanced Planning Fee 21,638 21,638 One‐time Impact Fee BMR ‐ ‐ One‐time Impact Fee Transportation 84,830 84,830 One‐time Impact Fee Park 900,000 900,000 One‐time Construction Tax 39,971 39,971 Bateh Brother/Alan Row Ongoing Property Tax Increase 8,000 8,000 8,167 8,338 8,510 8,510 8,693 58,218 Ongoing Sales Tax Increase ‐ Ongoing Transient Occupancy Tax ‐ One‐time Permit Fees Inspection/Plan Review 53,647 53,647 One‐time Planning Fee Advanced Planning Fee 4,749 4,749 One‐time Impact Fee BMR 140,111 140,111 One‐time Impact Fee Transportation 38,199 38,199 One‐time Impact Fee Park 480,000 480,000 One‐time Construction Tax 8,111 8,111 Marina Plaza Ongoing Property Tax Increase 125,000 127,606 130,289 132,961 132,961 135,834 784,652 Ongoing Sales Tax Increase 206,000 224,554 230,677 240,453 240,453 247,439 1,389,576 Ongoing Transient Occupancy Tax ‐ One‐time Permit Fees Inspection/Plan Review 230,473 230,473 One‐time Planning Fee Advanced Planning Fee 226,480 226,480 One‐time Impact Fee BMR $0 (onsite)‐ One‐time Impact Fee Transportation 792,420 792,420 One‐time Impact Fee Park 10,152,000 10,152,000 One‐time Construction Tax 209,192 209,192 Year Fee Paid (projects may pay fees in multiple years) Development Revenue Estimates1 (5/17/2023) Project Revenue Type Sub‐Revenue 2023 2024 2025 2026 2027 2028 2029 2030 Grand Total Year Fee Paid (projects may pay fees in multiple years) Westport Ongoing Property Tax Increase 127,000 129,648 132,373 135,089 135,089 138,007 797,206 Ongoing Sales Tax Increase 76,000 76,000 Ongoing Transient Occupancy Tax ‐ One‐time Permit Fees Inspection/Plan Review 453,643 256,767 710,410 One‐time Planning Fee Advanced Planning Fee 53,049 166,048 219,097 One‐time Impact Fee BMR $0 (onsite)‐ One‐time Impact Fee Transportation 188,803 188,803 One‐time Impact Fee Park 8,970,000 8,970,000 One‐time Construction Tax 80,866 387,497 468,363 Hamptons Apartments Ongoing Property Tax Increase 253,000 253,000 Ongoing Sales Tax Increase ‐ Ongoing Transient Occupancy Tax ‐ One‐time Permit Fees Inspection/Plan Review 415,424 415,424 One‐time Planning Fee Advanced Planning Fee 654,226 654,226 One‐time Impact Fee BMR 128,999 128,999 One‐time Impact Fee Transportation 1,800,000 1,800,000 One‐time Impact Fee Park 30,805,920 30,805,920 One‐time Construction Tax 860,234 860,234 De Anza Hotel Ongoing Property Tax Increase 47,000 47,000 Ongoing Sales Tax Increase ‐ Ongoing Transient Occupancy Tax 984,000 984,000 One‐time Permit Fees Inspection/Plan Review 115,730 115,730 One‐time Planning Fee Advanced Planning Fee 107,740 107,740 One‐time Impact Fee BMR 2,095,377 2,095,377 One‐time Impact Fee Transportation 577,840 577,840 One‐time Impact Fee Park ‐ ‐ One‐time Construction Tax 100,589 100,589 Cupertino Village Ongoing Property Tax Increase 43,000 43,000 Ongoing Sales Tax Increase ‐ Ongoing Transient Occupancy Tax 1,174,000 1,174,000 One‐time Permit Fees Inspection/Plan Review 109,531 109,531 One‐time Planning Fee Advanced Planning Fee 88,985 88,985 One‐time Impact Fee BMR 1,849,765 1,849,765 One‐time Impact Fee Transportation 689,680 689,680 One‐time Impact Fee Park ‐ ‐ One‐time Construction Tax 94,890 94,890 Development Revenue Estimates1 (5/17/2023) Project Revenue Type Sub‐Revenue 2023 2024 2025 2026 2027 2028 2029 2030 Grand Total Year Fee Paid (projects may pay fees in multiple years) Vallco Ongoing Property Tax Increase 1,538,000 1,538,000 Ongoing Sales Tax Increase 1,621,000 1,621,000 Ongoing Transient Occupancy Tax ‐ One‐time Permit Fees Inspection/Plan Review 4,136,525 4,136,525 One‐time Planning Fee Advanced Planning Fee 1,886,668 One‐time Impact Fee BMR ‐ ‐ One‐time Impact Fee Transportation ‐ ‐ One‐time Impact Fee Park ‐ ‐ One‐time Construction Tax 1,865,553 ‐ 1,865,553 TOTAL ALL PROJECTS Ongoing Property Tax Increase ‐ 8,000 353,000 360,361 367,935 375,483 375,483 2,264,594 4,104,856 Ongoing Sales Tax Increase ‐ ‐ 308,000 252,896 259,791 270,802 270,802 1,899,669 3,261,959 Ongoing Transient Occupancy Tax ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,158,000 2,158,000 One‐time Permit Fees Inspection/Plan Review 507,290 803,495 ‐ ‐ ‐ ‐ 4,777,210 ‐ 6,087,995 One‐time Planning Fee Advanced Planning Fee 57,798 637,096 ‐ ‐ ‐ ‐ 2,737,619 ‐ 3,432,513 One‐time Impact Fee BMR 140,111 4,496,925 ‐ ‐ ‐ ‐ 4,074,141 ‐ 8,711,177 One‐time Impact Fee Transportation 227,002 3,579,505 ‐ ‐ ‐ ‐ 3,067,520 ‐ 6,874,027 One‐time Impact Fee Park 9,450,000 11,052,000 ‐ ‐ ‐ ‐ 30,805,920 ‐ 51,307,920 One‐time Construction Tax 88,977 1,189,413 ‐ ‐ ‐ ‐ 2,921,266 ‐ 4,199,656 Total Ongoing ‐ 8,000 661,000 613,256 627,726 646,285 646,285 6,322,263 9,524,815 Total One‐Time 10,471,178 21,758,434 ‐ ‐ ‐ ‐ 48,383,676 ‐ 80,613,288 2The estimate assumes an increased value of the improvements but not an increased value of the land. The increased value of the improvements is based on the number of bedrooms for residential properties and square footage for hotels, retail, or office properties. The average market values of residential properties are from Zillow. 3The estimate is calculated by multiplying the proposed retail square footage by the average sales tax revenue per square foot of retail from HdL 2023 Q1 Sales Tax Reports. 4The estimate is calculated by multiplying the number of proposed rooms in the hotel by the RevPAR (Revenue Per Occupied Room) and Transient Occupancy Tax rate (12%). RevPAR is the Average Daily Rate (ADR) multiplied by the Occupancy Rate. The average ADR and Occupancy Rate over the last year for hotels in Cupertino are from HdL. 1These estimates are intended to provide a general idea and should be considered rough approximations. The timing of projects represents the Community Development department's best estimate of when a project is anticipated to commence. It's important to note that these estimates are subject to change as additional information becomes available.