SB Friedman assisted Conor Commercial Real Estate (Conor) in preparing a fiscal impact study for a proposed 260-unit multifamily residential rental development in the Village of Deerfield, Illinois.
SB Friedman’s primary role was to conduct a detailed analysis of the fiscal impacts of the new development on the Village and selected major taxing bodies. We developed a comprehensive fiscal impact model allowing for average cost calculations at the departmental/district level, and calculated net fiscal impacts by taxing district.
Key components of SB Friedman’s work included:
- Estimating cost and revenue parameters for operations, maintenance and infrastructure costs by department and district, using budgets and Comprehensive Annual Financial Reports (CAFRs) from the Village, park, library and school districts;
- Projecting actual revenue generation associated with the proposed project, including property tax, municipal utility taxes, per capita rebates and impact fees;
- Estimating the sales tax revenues generated by the future residents, based on the portion of income expected to be used for purchasing retail goods within the Village;
- Allocating costs and revenues to each department and district based on the proper allocation method (e.g., residents, lane miles, service calls); and
- Preparing a summary fiscal impact memo for review by the Village Board of Trustees.
Results: SB Friedman delivered a final memo to the client, and the project was presented to the Village Board in June 2013. The development has been completed.