October 12, 2007

Greg S. Shannon, Vice President of Development
Shea Properties
9990 Mesa Rim Rd.
San Diego, CA 92121

Re:  Fiscal and Economic Benefits of the Mercado Del Barrio Project

Downloads (PDF)
Barrio Logan Mercado Project Fiscal Impact Summary
Barrio Logan Mercado Methodology
Barrio Logan Mercado Revenues and Expeditures

Dear Greg:

TaxpayersAdvocate.org retained Rea & Parker Research to determine the fiscal and economic benefits of the Mercado Del Barrio Project.  The key findings below illustrate that the project should generate the following benefits to the City of San Diego and Redevelopment Agency

$9.5 million in Net Revenues over 10 years

Almost $9.5 million over ten years.  $948,119 per year.

809 Net New Jobs

711 net new jobs, growing to 809 jobs by Year 10.

$25 million Payroll

$20.5 million in new payroll. $25 million by Year 10.

$60 Million in Retail Sales

$49.4 million in net retail sales by Year two. $60 million by Year 10.

Construction Related Jobs and Revenues

• 113 annualized construction jobs. 102 jobs created by economic spin-offs from these workers.
• $13 million in construction related payroll (including the Multiplier)
• $49.3 million to the local and regional economy for construction-related material purchases, salaries of non-construction personnel, and other services.
• Over $4 million in development impact fees and permits to the City, City schools, and the County Water Authority. 

The bottom line is that Shea Properties Mercado Del Barrio project will be an exciting and lucrative project for the Barrio Logan Redevelopment Project Area and the City of San Diego.

Sincerely,

Scott Barnett, President
TaxpayersAdvocate.org