Executive Summary

Research completed by Donald T. Iannone & Associates

The objective of the study was to compile an objective analysis of the economic impacts of the Marina District Project on the local economy and communicate the results to area residents. Iannone & Associates conducted interviews with community members, collected relevant data, produced a community and economic profile, utilized IMPLAN to analyze the data and wrote the final study/report.

The project is a development in Sandusky that includes:

Private-public partnership
12 acres of development, 18 acres of parks and open space for a total of 30 acres
300 condominiums
120 – 150 room hotel
25,000 square feet of commercial services
10,000 square foot marina building
Public improvements to the site
A new city hall

The proposed development plan will be introduced in three phases from 2008 – 2014. Construction will continue over the seven year period, with some operational considerations beginning as early as 2010. The developer will invest over $134 million while the city will invest under $20 million (funding plan is already in place). These investments will produce nearly $250 million in new spending, new income and new taxes + nearly 1500 jobs.

Iannone & Associates selected a conservative approach to the analysis. For example, they included no dollars from Induced Income (income available to spend by those employed in either the operational or construction phases of the project). After reviewing the demographic and economic environment of both the city of Sandusky and Erie County, the firm concluded that Sandusky: population is declining forcing income, housing stock, labor force, industry employment and the tax base down. It also concluded the county has a slight population loss with very slow growth in housing, income, industry employment and in the tax base.

The researchers concluded that the local spending impact will total $205 million, the local income impact accumulates to $34.1 million, the local tax impact totals approximately $10 million and 1460 new jobs are created.

Iannone & Associates suggested the city ensure public access to the lakefront, as well as preserving open space and park areas. They also suggested the development be a “green” project, incorporating an environmentally friendly strategy. The city should also work to maximize employment opportunities for city residents and to increase local business involvement to increase the economic impact of the development. Positive impacts include:

Improved appearance of the lakefront
Public open space and park areas are preserved
City marinas, boating and other recreational opportunities are enhanced
Downtown will benefit by the synergies created by the new residents and visitors
Population of the city will increase
Real estate values will be increased in nearby neighborhoods
More housing choices will be available
Schools, city and project will benefit with tax incremental financing
city hall, which is ADA deficient and in need of significant renovation, will be replaced

Putting all the elements of the project impact analysis together, Iannone & Associates concludes a positive effect on the local economy will be realized, with approximately ¼ of a billion dollars in spending, taxes and income generated during the project time frame (2008 – 2014).

FOR MORE INFORMATION

For more information, please click here for the Economic Impact Study Power Point presentation

For the complete technical report, click here

If you have any questions, please email the foundation at info@sanduskyfoundation.org

Thank you for your interest in learning more about the proposed Marina District Project.

10/24/07