The economic impact of the transformation of the Bull Street property

7/28/2019 The economic impact of the transformation of the Bull Street property

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The economic impacT of The TransformaTion of The Bull sTreeT properTy

Executive Summary................................................................... Page 2

1. Introduction.............................................................................. Page 6

2. Overview of the Bull Street Project.............................................Page 8

3. Economic Impact of the Bull Street Project ................................ Page 9

4. A Potential Catalyst for Bull Street Minor League Baseball.....Page 16

5. Summary.................................................................................. Page 18

Endnotes ..................................................................................Page 20

Miley & Associates.....................................................................Page 21

General Limiting Conditions .................................................... Page 22

Table o Contents


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Executive Summary

his report evaluates the

economic impacts of the

development of the Bull

Street property in Columbia,

S.C. on the Columbia metropolitan

economy. This analysis is intended

to provide the Greater Columbia

Chamber of Commerce and local

governments an estimate of the levelof economic activity and jobs that will

result from the development of the

Bull Street property. These impacts

are estimated to occur within the

multi-county Columbia metropolitan

area during the construction of the

Bull Street property as well as the on-

going permanent economic impacts

of the residential and commercial and

recreational activity that is antici-

pated once the project is completed.

Background

The potential development of the

Bull Street property has been an

ongoing topic of interest of the City

of Columbia for many years. The

property was once home to the South

Carolina Department of Mental

Health (SCDMH) and is the largest

single, unused tract of land in the

City. The property covers approxi-

mately 180 acres

The potential build-out plan of the

property has evolved over the last

eight years and in 2010, the owner of

the property, the SCDMH, signed a

contract for sale to Hughes Develop-

ment of Greenville, S.C.

Project Description TheHughes Development Plan

The most recent master plan for the

proposed development of the Bull

Street property has been developed

for Hughes Development by Duany

Plater-Zyberk & Company (DPZ) and

Copper Carry, a nationally recognizedarchitectural planning rm with

ofces in Atlanta, G.A., Washington,

D.C. and New York, N.Y.

The preliminary Hughes plan

includes substantial re-use of many

of the historic structures on the

property along with 3,558 residential

dwelling units, including apartment/

condominium units, townhomes

and single-family homes of a variety

of sizes and levels of affordability.In addition, the plan incorporates

approximately 1.7 million square

feet of commercial and ofce areas

and a 70-room hotel. The plan

also includes churches locations;

recreational spaces; hiking and biking

trails; preserved and open spaces,

community facilities; and major

off-site roadway improvements.

tIntroduction

The preliminary Hughesplan includes substantialre-use of many of thehistoric structures on the

property along with 3,558residential dwelling units,including apartment/condominium units, town-homes and single-familyhomes of a variety of sizesand levels of affordability.


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he development of the

Bull Street property will

have positive impacts

on the greater Columbia

metropolitan economy in at least four

phases. Many of the impacts would

occur during the construction of the

residential, commercial and other

components of the development.Once the residential and commercial

construction is completed, the per-

manent residents living and working

in the development would have

additional impacts on an ongoing

basis on the local economy. The four

phases are listed below:

ConstructionoftheResidential/

Ofce/Retailbuildings(annual

for 20 years)

OnetimeconstructionofHoteland Civic facilities

Infrastructureconstruction

(ongoingfor20years)

PermanentEmploymentofbusi-

nessesinBullStreet(ongoing)

When all of these impacts are

combined, the economic impacts of

the development of Bull Street are

impressive. As seen in Table 1A, the

total impacts of Bull Street will gener-

ate tremendous economic activity in

the Columbia area.

As seen in Table 1A, the development

of Bull Street will generate more

than $714 million of direct economic

activity. The indirect and induced

impacts of the project would add

another $495 million in economic

t

T a b l e 1 aAnnual Economic Impacts of the Development of Bull Street

Total Economic Impacts

it T et lb i ott

Dt et 6,754 $414,783,468 $713,464,407

idt et 1,519 $63,181,237 $169,995,222idd et 2,746 $103,172,605 $325,484,434

Tt et 11,020 $581,137,308 $1,208,944,062

Executive Summary(continued)

The development of Bull Street will generatemore than $714 million of direct economicactivity. The indirect and induced impacts of

the project would add another $495 millionin economic activity in the region -- for a totalimpact of $1.2 billion per year.

Economic Impact of the Bull Street Project

activity in the region -- for a total

impact of $1.2 billion per year.

The development activity will gener-

ate labor income while producing

this total output. The direct labor

income is estimated to be $415

million. Adding the indirect and

induced effects of this direct activity,the project would generate another

$166 million in labor income for a

total labor income impact of $581

million per year.

Finally, the development of Bull Street

would generate a substantial number

ofjobsintheColumbiaarea.Itis

estimated to directly create and sup-

port 6,142 jobs. The activity supports

another 3,900 jobs indirectly for a

total employment impact on the region

of 10,040 jobs. These jobs are relative-

ly high wage jobs, averaging well above$59,000 a year per employee. Thus, at

the projects build-out, it is estimated

that there will be an annual income

impact of almost $1.2 billion.


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Local Property Taxes inRichland County

The development of the Bull Street

property will also generate sub-

stantial local property taxes. At

build-out, the project is estimated to

generate almost $20 million in

local property taxes per year. Thesewould be generated for the various

local governments as indicated in

Table 2A.

As seen in Table 2A, the property

taxes for the school district would be

substantial, increasing to more than

$13 million a year. The City taxes

would grow to about $4.4 million

a year while County taxes would

increase to about $2.6 million a year

at the projects completion.

The development of the Bull Street propertywill also generate substantial local propertytaxes. At build-out, the project is estimated

to generate almost $20 million in localproperty taxes per year.

T a b l e 2 a

Estimated Annual Property Tax Revenues (At Buildout)

y 5 y 10 y 15 y 20

ettd ad V $19,451,306 $32,561,758 $45,040,739 $59,764,629

ct it Tx rv $1,431,130 $2,395,731 $3,313,872 $4,397,183

ct it Tx rv $717,753 $1,201,529 $1,662,003 $2,205,315

cunty Bnd inemental Tax revenue $131,296 $219,792 $304,025 $403,411s it Tx rv $3,453,093 $5,780,526 $7,995,857 $10,609,716

sl Bnd inemental Tax revenue $773,189 $1,294,330 $1,790,369 $2,375,644

Tt it Tx rv $6,506,462 $10,891,908 $15,066,127 $19,991,269

Executive Summary (continued)

Economic Impact o the Bull Street Project(continued)


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s outlined in this

analysis, the devel-

opment of the Bull

Street property clearly

will have a tremendous impact on

the greater Columbia metropolitan

economy.

The benets outlined here will begenerated from the construction

phases, and the permanent on-going

phase of the development project. If

the property is developed as outlined

in the Hughes Development plan

and successfully implemented within

the 20-year build-out, the impacts

as outlined in this analysis can be

reasonably expected to be realized

in the greater metropolitan area of

Columbia.

As described in this report,

the total economic impacts of

the development of Bull Street

would generate more than $1.2

billion of economic activity

per year, $581 million in labor

income and more than 11,000

new jobs when completed.

And the project will generate sub-

stantial property taxes in the region.

At build-out, Bull Street is estimated

to generate almost $20 million a year

in property taxes for the local govern-

ments and school district.

Columbia is ripe for minor league baseballand may even be at a competitive disad-vantage with other South Carolina citiesin terms of attractive places to live sinceit does not have a minor league team...

Columbia is the largest metropolitan areaeast of the Mississippi River that does nothave a minor league baseball franchise.

An additional benet from the pro-

posed development of the Bull Street

project is that many of the additional

costs to the City, Richland County

and Richland One School District

that result from new residential

development would most likely be

relatively modest. Since the project

is located in a well-established areawithin the City, a great deal of the off-

site infrastructure -- such as regional

water and sewer capacity, connecting

trafc arteries and school capacity

-- already exists to serve the area.

Finally, Columbia could further

enhance and speed up these

impacts occurring by including a

minor league baseball park in the

development plan. Cities such

as Charleston, Myrtle Beach, and

Greenville are examples of cities in

South Carolina where minor league

baseball is thriving and stimulating

additional development. Durham,

N.C. and Ft Wayne, I.N. are two

additional cities that have beneted

from minor league parks.

Columbia is ripe for minor leaguebaseball and may even be at a

competitive disadvantage with

other South Carolina cities in terms

of attractive places to live since it

does not have a minor league team.

According to the Central SC Alliance,

more than 1.3 million people live

within a 50-mile radius of Columbia.

Columbia is the largest metropolitan

area east of the Mississippi River

that does not have a minor league

baseball franchise.

Executive Summary (continued)

Summary


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his report evaluates the

economic impacts of the

development of the Bull

Street property in Columbia,

S.C., on the Columbia metropolitan

economy. This analysis is intended

to provide the Greater Columbia

Chamber of Commerce and local

governments an estimate of the level

of economic activity and jobs that will

result from the development of the

Bull Street property. These impacts

are estimated to occur within the

multi-county Columbia metropolitan

area during the construction of the

Bull Street property as well as the on-

going permanent economic impacts

of the residential and commercial and

recreational activity that is antici-

pated once the project is completed.

1. Introduction

t


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1. Introduction (continued)

Background

The potential development of the Bull

Street property has been an ongoingtopic of interest of the City of Columbia

for many years. The property was once

home to the South Carolina Depart-

ment of Mental Health (SCDMH) and

is the largest single, unused tract of

land in the City. The property covers

approximately 180 acres. In January of

2005, the Central Carolina Community

Foundation (CCCF) retained the

planning rm, Duany Plater-Zyberk

& Company (DPZ) to undertake an

extensive community-based planningeffort and develop a conceptual master

plan for the Bull Street property. The

DPZ plan incorporated a mixed-use

development with approximately 1,300

dwelling units, more than 500,000

square feet of commercial/ofce space

and substantial re-use of many of the

historic structures on the property.

The potential build-out plan of the

property has evolved over the lasteight years and in 2010, the owner of

the property, the SCDMH, signed a

contract for sale to Hughes Develop-

ment of Greenville, S.C. Hughes

is a well-known developer and is

best known in South Carolina for

the successful development of the

downtown Greenville area. The sale

has not been nalized and the city,

DMH and Hughes are still in negotia-

tions. The impacts outlined in this

study reect the mixed-use projectplanned by Hughes Development.

The Hughes design is similar but not

exactly the same as the original DPZ

plan, which was later revised by DPZ

and others to reect changed market

conditions and opportunities. The

details of the Hughes plan are outlined

in the following section.

The DPZ plan incorporateda mixed-use developmentwith approximately 1,300dwelling units, more than500,000 square feet ofcommercial/ofce space

and substantial re-use ofmany of the historic struc-

tures on the property.


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2. Overview o the Bull Street Project

Project Description TheHughes Development Plan

he most recent master plan

for the proposed develop-

ment of the Bull Street

property has been developed

for Hughes Development by Duany

Plater-Zyberk & Company (DPZ) and

Copper Carry, a nationally recognized

architectural planning rm with ofces

in Atlanta, G.A., Washington, D.C. and

New York, N.Y. The impact analysis

in this report assumes the pricing,

number of dwelling units, commercial

and ofce facilities, build-out schedule

and components as detailed in that

plan as closely as possible.

The preliminary Hughes plan also

includes substantial re-use of many

of the historic structures on the

property along with 3,558 residentialdwelling units, including apartment/

condominium units, townhomes and

single-family homes of a variety of sizes

and levels of affordability. In addition,

the plan incorporates approximately 1.7

million square feet of commercial and

ofce areas and a 70-room hotel. The

plan also includes churches locations;

recreational spaces; hiking and biking

trails; preserved and open spaces,

community facilities; and major off-site

roadway improvements.

Table 1 outlines the major components

of the mixed-use land uses. It is

estimated that there will be an average

of 150 to 200 dwelling units built on

the campus per year. The plan assumes

build-out will take about 20 years

pd ld u pd sq ftg

rt rdt 3,000,000

ow-od rdt 549,600

Tw h rdt 250,000

ht 70,000

rt 579,380

cv 70,000

Ofce 500,000

MedicalOfce 300,000

Bbk Bdg 200,000

Tt 5,518,980

to complete. As the project nears

start-up, the exact number, pricing and

timing of this to preliminary build-out

may vary. The initial pace will most

likely be faster, but using the average isa conservative methodology.

Early development of the baseball

park would likely speed up other

development activities within the

Bull Street site.

t

Development Plan Mix

T a b l e 1


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3. Economic Impact o the Bull Street Project

he development of the

Bull Street property will

have positive impacts on

the greater Columbia met-

ropolitan economy in at least four

phases. Many of the impacts would

occur during the construction of the

residential, commercial and ballpark

properties. Once the residential

and commercial construction is

completed, the permanent residents

living and working in the develop-

ment would have additional impacts

on an ongoing basis on the local

economy. The four phases are listed

below:

Construction of the Residential/

Ofce/Retail buildings (annual

for 20 years)

One time construction of Hotel

and Civic facilities

Infrastructure construction

(ongoing for 20 years)

Permanent Employment of busi-

nesses in Bull Street (ongoing)

The analysis in this report utilizes

impact models generated by the

IMPLAN modeling system. IMPLAN

is a nationally recognized system of

local economic models that are spe-

cically designed to represent a state

economy such as the South Carolina

economy.1

The IMPLAN modelsare modications of the national

input-output models developed by

the Bureau of Economic Analysis,

US Department of Commerce. The

IMPLAN models incorporate the

most recent data available and are

2011 unless otherwise noted.

The IMPLAN input-output model

mathematically derives the indirect

and induced effects. The resulting

multipliers describe the change in

output for every regional industry

caused by a one-dollar change in nal

demand for any given industry. The

notion of a multiplier rests upon the

difference between the initial effect of

a change in nal demand and the total

effects of that change. Total effects are

the direct effects plus indirect effects,

plus induced effects. Direct effects

are the production changes associated

with initial nal demand changes.

Indirect effects are production changes

in backward-linked industries caused

by the changing input needs of directly

affected industries. Induced effects

result from the household expendi-

tures from the directly or indirectly

generated labor income.

The multipliers used in this analysis

estimate three components of total

change within the local area:

Direct effects represent the initial

change in the output of an industry.

Indirect effects are changes in

inter-industry transactions as

supplying industries respond

to increased demands from the

directly affected industries.

Induced effects reect changes inlocal spending that result from

income changes in the directly and

indirectly affected industry sectors.

This cycle of spending continues until

leakages from the region (spending

on goods and services outside the

area) stop the cycle. Due to these

multiplier effects, the initial, direct

investment results in indirect and

induced impacts of many more

dollars.

In essence, the multipliers estimated

by this methodology represent the

consecutive rounds of buying and sell-

ing that ripple through an economy.

To produce one dollar of new product,

employees must be hired and paid.

The wages paid to these workers will

then be spent on goods and services,

such as food, gasoline, clothes, hous-

ing, etc. within the region and outside

the region. As these dollars are spent,

they become income to the recipient,

and the spending continues over and

over again. The induced effect is the

cumulative amount of spending.

The economic activity of the directly

impacted industry also requires

intermediate inputs to be purchased

such as electricity, raw materials,

transportation services, labor etc.

These expenditures become income

to the recipient and pay for the

purchases of raw materials, labor,

etc. They, in turn, are then spent

over and over again in the economy.

Purchases made from outside the

region are considered leakagesfrom the economy. The consecutive

rounds of selling goods and services

continue until these leakages from

the region end the cycle. The indirect

effect is the cumulative amount of

such spending.

t


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3. Economic Impact o the Bull Street Project (continued)

One of the largest and most obvious

economic impacts will result from

the relatively large scale construction

projects that will occur as the more

than 5.5 million square feet of mixed

use residential and commercial

buildings are constructed. In smaller

projects, construction impacts are

often considered to be temporary.

However, given the 20-year build outscenario planned for the Bull Street

property, these construction impacts

can be considered more permanent.

To more accurately estimate these

impacts, an average annual construc-

tion impact is estimated here.

As seen in Table 2, the build-out of

Bull Street will generate tremendous

economic activity on an annual basis

in the Columbia area. The annual

impacts of the construction are

estimated to generate direct output

of more than $86 million.

As with any economic activity, the

direct activity of this construction

activity has indirect and induced

impacts. Together, as seen in Table 2,

A Construction o the Residential/Ofce Buildings

The build-out of BullStreet will generatetremendous economicactivity on an annualbasis in the Columbiaarea. The annual impactsof the construction areestimated to generatedirect output of more than$86 million.

the indirect and induced impacts of the

construction of residential and ofce

space would add another $58 million

in economic activity in the region for a

total impact of $144.5 million.

The construction activity will gener-

ate substantial labor income while

producing this total output. The direct

labor income of the construction activ-ity is estimated to be $36.1 million a

year. Adding the indirect and induced

effects of this direct activity, the

construction activity would generate

another $19.6 million in labor income

per year for a total labor income

impact of $55.8 million a year.

Finally, this construction activity is a

substantial job generator in the area.

The construction activity is estimated

to directly create and support more

than 760 jobs a year. This, in turn,

supports another 477 jobs indirectly

for a total employment impact on the

region of 1,236 jobs. These direct jobs

are relatively high wage jobs, averag-

ing well above $47,000 a year per

employee.

T a b l e 2Annual Economic Impacts o the Development o Bull Street

Construction o Residential and Ofce buildings

it T et lb i ott

Dt et 760 $36,131,369 $86,295,956

idt et 212 $9,759,995 $26,873,758

idd et 265 $9,941,160 $31,366,262

Tt et 1,236 $55,832,524 $144,535,976


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B Hotel and Civic Facilities

As seen in Table 3, the construction of

the hotel and civic facilities will also

generate economic activity on a one-

time basis in the Columbia area. These

impacts will be temporary and last as

long as the construction activity occurs.

The impact of the construction of the

hotel and civic facilities is estimated

to generate direct output of more than

$18 million.

The direct activity of this construc-

tion activity has indirect and induced

impacts. Together, as seen in Table

3, the indirect and induced impacts of

the construction of the hotel and civic

facilities would add another $12.2 mil-

lion in economic activity in the region

for a total impact of $30.5 million.

The construction activity will generate

labor income while producing this total

output. The direct labor income of

the construction activity is estimated

to be $8.3 million a year. Adding the

indirect and induced effects of this

direct activity, the construction activity

would generate another $4.2 million

in labor income a year for a total labor

income impact of $12.5 million.

Finally, this construction activity is

also job generator in the area. The

construction activity is estimated

to directly create and support 174

jobs. The activity supports another

98 jobs indirectly for a total employ-

ment impact on the region of 272

jobs. These direct jobs are relatively

high wage jobs, averaging well above

$48,000 a year per employee.

The impact of the construction of the hoteland civic facilities is estimated to generatedirect output of more than $18 million.


Hotel and Civic Construction

it T et lb i ott

Dt et 174 $8,354,663 $18,207,000

idt et 39 $1,944,595 $5,256,095

idd et 59 $2,227,739 $7,028,451

Tt et 272 $12,526,996 $30,491,545


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C Inrastructure Construction

The Bull Street property will require

a substantial investment in infra-

structure. As seen in Table 4, the

construction of the required infrastruc-

ture at the Bull Street property will

generate additional economic activity.

Infrastructure construction will most

likely occur on an annual basis but will

not be evenly distributed throughout

the 20-year build-out period. In thisanalysis, the impacts are estimated

for the rst ve years of infrastructure

investment. This investment includes

roads, water and sewer, stormwater

management and a baseball park.

The ve-year impact of the construc-

tion of infrastructure is estimated to

generate direct output of more than

$49.3 million.

The direct activity of this infrastruc-ture construction activity has indirect

and induced impacts. Together,

as seen in Table 4, the indirect and

induced impacts of the construction

of infrastructure would add another

$33 million in economic activity in

the region for a total impact of $82.6

million.

The construction activity will gener-

ate labor income while producing

this total output. The direct labor

income of the construction activity is

estimated to be $21.4 million. Add-

ing the indirect and induced effects

of this direct activity, the construc-

tion activity would generate another

$11.4 million in labor income for a

total labor income impact of $32.9million.

Finally, this construction activity is

also a job generator in the area. The

construction activity is estimated to

directly create and support 439 jobs.

The activity supports another 269

jobs indirectly for a total employment

impact on the region of 708 jobs.

These direct jobs are relatively high

wage jobs, averaging almost $49,000

a year per employee.

phoTo fWke

The ve-year impact ofthe construction of infra-structure is estimated togenerate direct output ofmore than $49.3 million.


Inrastructure Construction

it T et lb i ott

Dt et 439 $21,383,940 $49,258,810

idt et 113 $5,653,983 $14,848,313

idd et 156 $5,845,982 $18,443,261

Tt et 708 $32,883,904 $82,550,384


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D Permanent Employment by Businesses in Bull Street

The largest economic impact from

the development of the Bull Street

property will be from the ongoing,

permanent employment of those

working within Bull Street and by

those residents living in Bull Street.

Once the project is complete, ongoing

economic activity (commercial, ofce,

retail, etc.) at Bull Street will generate

tremendous economic activity on anannual basis in the Columbia area.

The annual impacts of this per-

manent activity are estimated to

generate direct output of $646

million per year.

The direct activity of this ongoing

activity has indirect and induced

impacts. Together, as seen in Table

5, the indirect and induced impacts

of the ongoing activity would

add another $450 million in eco-

nomic activity in the region for a total

impact of $1.1 billion per year.

This activity will generate labor

income while producing this total

output. The direct labor income of

the ongoing activity is estimated to

be $385 million a year. Adding the

indirect and induced effects of this

direct activity, this annual, ongoing

activity would generate another $150

million in labor income a year for a

total labor income impact of $536million a year.

Finally, the ongoing, permanent

economic activity at Bull Street is

estimated to be a substantial job

generator in the area. The ongoing

activity is estimated to directly create

and support 6,142 jobs. The activity

supports another 3,900 jobs indi-

rectly for a total employment impact

on the region of 10,040 jobs. These

direct jobs are relatively high wage

jobs, averaging more than $62,000 a

year per employee.

Once the project is com-plete, ongoing economicactivity (commercial,ofce, retail, etc.) at

Bull Street will generatetremendous economic

activity on an annual basisin the Columbia area.


Employment (At Buildout)

it T et lb i ott

Dt et 6,142 $385,044,865 $645,998,597

idt et 1,367 $55,582,659 $149,890,814idd et 2,531 $95,098,884 $300,012,722

Tt et 10,040 $535,726,408 $1,095,902,133


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E Total Impacts

When all of these impacts are

combined, the economic impacts of

the development of Bull Street are

impressive. As seen in Table 6, the

total impacts of Bull Street will gener-

ate tremendous economic activity in

the Columbia area.

The development of Bull Street is

estimated to generate direct output ofmore than $713.5 million per year.

This direct activity also has indirect

and induced impacts. Together,

as seen in Table 6, the indirect and

induced impacts of the project would

add another $495 million in eco-

nomic activity in the region -- for a

total impact of $1.2 billion per year.

The development activity will gener-

ate labor income while producing this

total output. The direct labor income

is estimated to be $415 million. Add-

ing the indirect and induced effects of

this direct activity, the project would

generate another $166 million in

labor income for a total labor income

impact of $581 million.

Finally, the development of Bull

Street would generate a substantial

number of jobs in the Columbia area.

It is estimated to directly create and

support 6,754 jobs. The activity sup-

ports another 4,265 jobs indirectly

for a total employment impact on the

region of 11,020 jobs. These direct

jobs are relatively high wage jobs,

averaging almost $62,000 a year per

employee.

While it is expected that the develop-

ment of Bull Street would impact

the construction sector, the indirect

impacts reach across many industries

across the region. As seen in Table 7,

these indirect and induced impacts

will be felt across a wide spectrum of

industries in the Midlands. Table 7

highlights the top 15 industry sectors

that will be impacted by Bull Street in

terms of new job creation.

T a b l e 7

Annual Economic Impacts o the Development o Bull StreetTotal Economic Impacts

Top 15 Industries Impacted by the Development o Bull Street

it T et lb i ott

Dt et 6,754 $414,783,468 $713,464,407

idt et 1,519 $63,181,237 $169,995,222

idd et 2,746 $103,172,605 $325,484,434

Tt et 11,020 $581,137,308 $1,208,944,062

T 15 idt itd Tt Jb std

Medical/Ofce/Service/Occupations 4874

rt st - m 1496

cntutn f te new nnedental tutue 1105

fd v d dkg 717

et v 325

r tt tbt 313

mt- tt 237

rt st - G d 155

W td b 142

pvt t 126

sv t bdg d dwg 111

atvt 97

att, gg, d td v 61

ot t d t dt 48

ht d t, dg t 32

T a b l e 6


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15



Local Property Taxes inRichland County

The development of the Bull Street

property will also generate sub-

stantial local property taxes. At

build-out, the project is estimated to

generate almost $20 million in

local property taxes per year. These

would be generated for the various

local governments as indicated in

Table 8.

These tax revenue estimates are

based on the total build-out as

outlined in Table 8 and assume the

millage rates that exist in 2013 are

constant over the build-out period.

All commercial, ofce and retail

improvements and all multi-family

dwelling units are assumed to be

assessed at 6% as well as 50% of the

single-family dwelling units. Theremaining 50% of the single-family

dwelling units are assumed to be

owner-occupied and assessed at 4%.

These 4% assessed units are also

assumed to be exempt from school

operating millages due to Act 388.

As seen in Table 8, the property

taxes for the school district would be

substantial, increasing to more than

$13 million a year. The City taxes

would grow to about $4.4 milliona year while County taxes would

increase to about $2.6 million a year

at the projects completion.

The development of the Bull Street propertywill also generate substantial local propertytaxes. At build-out, the project is estimatedto generate almost $20 million in local

property taxes per year.

T a b l e 8

Estimated Annual Property Tax Revenues (At Buildout)

y 5 y 10 y 15 y 20

ettd ad V $19,451,306 $32,561,758 $45,040,739 $59,764,629

ct it Tx rv $1,431,130 $2,395,731 $3,313,872 $4,397,183

ct it Tx rv $717,753 $1,201,529 $1,662,003 $2,205,315

cunty Bnd inemental Tax revenue $131,296 $219,792 $304,025 $403,411

s it Tx rv $3,453,093 $5,780,526 $7,995,857 $10,609,716

sl Bnd inemental Tax revenue $773,189 $1,294,330 $1,790,369 $2,375,644

Tt it Tx rv $6,506,462 $10,891,908 $15,066,127 $19,991,269


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4. A Potential Catalyst or Bull Street Minor League Baseball

s outlined in this

report, the develop-

ment of Bull Street

will have tremendous

economic impacts on the Columbia

area. However, Columbia could

further enhance and speed up these












Columbia is ripe for minor league

baseball and may even be at a competi-

tive disadvantage with other South

Carolina cities in terms of attractive

places to live since it does not have a

minor league team. According to the

Central SC Alliance, more than 1.3 mil-

lion people live within a 50-mile radius

of Columbia.2 However, Columbia is

the largest metropolitan area east of

the Mississippi River that does not

have a minor league baseball franchise.

One of the real success stories of

minor league baseball in South

Carolina and the entire Southeast is

the Greenville Drive at Flour Field

in Greenville. Recent news of the

teams success and impact include

the following highlights3:

Recognized as 2006 Ballpark of

the Year

Welcomedover1.3MMfans

sinceOpeningDay;morethan

330,000inattendanceeachyear

Set the South Carolina Upstate

record for season attendance in

2006

Brokeitsownseasonattendance

record in 2007 and again in 2008

Rankedrstamong14South

AtlanticLeagueTeamsbasedon

percentageofavailableseatssold

WonTheNationalSportsForum

2009OverallAwardofExcellence

Business leaders in Greenville have

documented the tremendous econom-

ic benets of the team, including4:

48newbusinesseshaveopened,

generating$12.5MMinsales

through2009,e.g.,17newrestau-

rantsandbars,10newretailers,

artstudios,healthclub,dance

studioandmore

67buildingpermitshavebeen

issuedforbothcommercialand

residentialprojects,e.g.,Field

Street,CustomHouse,Brown-

stoneCondos,RhettStreetdevel-

opmentandmore

Local businesses have also stated that

Fluor Field and its amenities are

one of the top quality of life advan-

tages consistently mentioned when

companies are encouraged to move to

the Upstate and out-of-area talent is

being recruited by local employers.5

The Greenville park is one of the

more modern, multi-purpose parks

that host a wide range of activities

in addition to baseball games. A re-

cent article in the Greenville Journal

noted the following activities that are

clear indicators of how the ball park

and team form a true part of the local

community6:

PartoftheDrivessuccessisthe

teamsefforttoturneverygame

intoaneventfocusedonasegmentofthecommunity.A.J.Whitten -

bergNightcenteredonthenearby

engineering-focusedelementary

school,therstdowntownschool

builtinfourdecades.Another

initiative,theDriveReadingAll-

Stars,promotesreadingtomore

than75,000studentsinGreen -

Minor League Baseball FacilitiesF I G U R e 1


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June 2013

17


ville,SpartanburgandPickens

counties.Theprogramculminates

withfourpre-gameceremonies

celebratingparticipantsreading

successes.

Andwhenthestadiumisnot

hostingoneoftheteams70home

games,theDrivemakesitavail-

ableforeventssuchastheSusan

G.KomenRacefortheCure,

collegeandhighschoolbaseball

gamesandfundraisersfornon-

protgroups.

The Travelers Rest Tribune provided

additional evidence that a minor

league park in the right place can

stimulate downtown development7:

Accordingtoafeasibilitystudy

releasedearlierthisyear,proper-

tieslocatedclosetoFluorField

haveexperiencedincreasesin

valueatatimewhenmuchofthe

nationwasreelingfromtheef-

fectsofasaggingrealestatemar-

ket.ThestudycitestheGreenville

Driveasatextbookexamplethat

illustratestheeconomicgrowth

associatedwithaminorleague

baseballstadium,statingthat

propertieswithin[ahalf-mile]

radiussawanaverage31percent

annualincreaseinassessedvaluefrom2006-2011,andthefacility,

byallaccounts,hascompletely

transformedthecity.

This is echoed by developers in the

region. Joe Pazdan, an Upstate

developer, stated:

You wouldnt believe the mar-

keting power Fluor Field has

for Greenvillereally a strong

attraction and advantage to

companies thinking of relocat-

ing or setting up a new facility

here in the Upstate!8

The minor league franchises appreci-

ate this type of community involve-

ment and understand the connection

between minor league baseball and

economic development.

Eric Krupa, president of the South

Atlantic League, said .The Drive

is the poster child for how a

stadium can drive downtown

development.9

Jim Bourey, former Greenville City

Manager, said: The Drive has

been the spark plug in the West

Ends economic development

engine! The numbers of new

businesses opened and invest-

ments being made around the

ballpark are remarkable.10

Perhaps an April 2013 editorial in

the Greenville News summed it up

best when it stated: All of this

has helped make Fluor Field

a hub for downtown activ-

ity, and it is further evidencethat bringing this particular

baseball team to downtown

Greenville has been a civic

home run.11

A plan that incorporates a minor

league baseball franchise as part

4. A Potential Catalyst or Bull Street Minor League Baseball (continued)

You wouldnt believe themarketing power Fluor

Field has for Greenvillereally a strong attractionand advantage to compa-nies thinking of relocatingor setting up a new facilityhere in the Upstate!

-JoePazdan,UpstateDeveloper

of an urban redevelopment while

also focusing on neighborhood level

economic development can be suc-

cessful especially if, at the end of the

project, baseball is played in the off

season, meaning the development is

sustainable year-round based on its

own development merits.

Therefore, baseball inside a greater

development plan needs to be

considered versus a stadium alone.

The reason to use this approach is

to increase the urban developments

chance of success. This is the model

that should be considered for Bull

Street.


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June 2013

18


5. Summary

s outlined in this

analysis, the devel-

opment of the Bull

Street property clearly

will have a tremendous impact on

the greater Columbia metropolitan

economy.

The benets outlined here will be

generated from the construction

phases, and the permanent on-going

phase of the development project. If

the property is developed as outlined

in the Hughes Development plan

and successfully implemented within

the 20-year build-out, the impacts

as outlined in this analysis can be

reasonably expected to be realized

in the greater metropolitan area of

Columbia.

As described in this report, the total

economic impacts of the develop-

ment of Bull Street would generate

more than $1.2 billion of economic

activity per year, $581 million in

labor income and more than 11,000

new jobs when completed.

The total economic impacts of the develop-ment of Bull Street would generate morethan $1.2 billion of economic activity peryear, $581 million in labor income and morethan 11,000 new jobs when completed.


Total Economic Impacts

it T et lb i ott

Dt et 6,754 $414,783,468 $713,464,407

idt et 1,519 $63,181,237 $169,995,222

idd et 2,746 $103,172,605 $325,484,434

Tt et 11,020 $581,137,308 $1,208,944,062


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June 2013

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5. Summary (continued)

And the project will generate sub-

stantial property taxes in the region.

At build-out, Bull Street is estimated

to generate almost $20 million a

yearin property taxes for the local

governments and school district.

An additional benet from the pro-

posed development of the Bull Street

project is that many of the additional

costs to the City, Richland County

and Richland One School District

that result from new residential

development would most likely be

relatively modest. Since the project

is located in a well-established area

within the City, a great deal of the

off-site infrastructure -- such as

regional water and sewer capacity,

connecting trafc arteries and school

capacity -- already exists to serve the

area.

Finally, Columbia could further

enhance and speed up these












Columbia is ripe for minor league

baseball and may even be at a

competitive disadvantage with

other South Carolina cities in terms

of attractive places to live since it

does not have a minor league team.

According to the Central SC Alliance,

more than 1.3 million people live

within a 50-mile radius of Columbia.

Columbia is the largest metropolitan

area east of the Mississippi River

that does not have a minor league

baseball franchise.

The evidence is clear that multi-

purpose, neighborhood minor

league parks, similar to the ones in

Greenville, S.C. and Ft. Wayne, I.N.

that are part of an urban develop-

ment project, can be a major catalyst

for the overall development project

and provide substantial economic

impacts to the metropolitan area.

Columbia is ripe for minor

league baseball and may

even be at a competitive

disadvantage with other

South Carolina cities in

terms of attractive places

to live since it does not

have a minor league

team... Columbia is the

largest metropolitan area

east of the Mississippi

River that does not have

a minor league baseballfranchise.


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June 2013

20


Endnotes

1 IMPLAN is regional modeling system developed by MIG, Inc., Stillwater, MN.

2 Central SC Alliance, 2013, http://www.centralsc.org/regionaldata/populationcharacteristics.aspx

3 Greenville Drive Celebrate 5 Year Anniversary in Downtown West End, Greenville Drive, 2010



6 Greenville Journal, A Home Run on the West End, December 13, 2012

7 Travelers Rest Tribune, More Than Just Greenvilles Drive, May 4, 2012


9 Greenville Journal, A Home Run on the West End, December 13, 2012


11 Greenville News, Drive keep winning for Greenville, April 14, 2013


22/23


23/23


General Limiting Conditions

his economic impact

analysis is not a budget

or forecasting docu-

ment and is not intended

to depict a denitive course of

action. Moreover, economic impact

analysis is not designed as a space or

facility-planning document. Many

assumptions underlying economic

impact analyses are based on policy

decisions which, if modied, would

affect the overall results.

This study is based on estimates,

assumptions and other information

developed by Miley & Associates,

Inc. from its independent research

effort, consultations with the client

and its representatives, and primary

and secondary sources. We have

utilized sources that are deemed

to be reliable but cannot guarantee

their accuracy. Moreover, estimates

and analysis are based on trends and

assumptions and, therefore, there

will usually be differences between

projected and actual results because

events and circumstances frequently

do not occur as expected, and those

differences may be material. No

responsibility is assumed for inac-

curacies in reporting by the client,

the clients agent and representatives

or any other data source used in

preparing this study.

This report is based on information

that was current as of April 2013

and Miley & Associates, Inc. has not

undertaken any update of its research

effort since that date. We have no

obligation, unless subsequently

engaged, to update this report or

revise this analysis as presented due

to events or conditions occurring

after the date of this report.

Possession of this study does not

carry with it the right of publication

thereof or to use the name of Miley

& Associates, Inc. in any manner

without rst obtaining the prior

written consent of Miley & Associ-

ates, Inc. No abstracting, excerpting

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Associates, Inc. This report is not

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study may not be used for purposes

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prepared or for which prior written

consent has rst been obtained from

Miley & Associates, Inc.

This study is qualied in its entirety

by, and should be considered in light

of, these limitations, conditions and

considerations.

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