City of Morgan Hill Economic Blueprint.docx

While the vacancy rate (Figure 14) has improved significantly over recent years (currently between 3 to 7%), the conversion of employment lands for residential uses has potentially problematic fiscal consequences. As shown in Figure 15, on a

per acre basis, new commercial development brings a much higher level of revenues to the City of Morgan Hill, even after accounting for increased costs of providing services.

Figure 15. Estimated Annual Revenues, Expenditures, and Jobs per Acre by Land Use Development Type

Land Use Development Type

Revenues per Acre

Expenditures per Acre

Net Revenues per Acre

Jobs per Acre

Single Family

$222

$175

$47

N/A

Multifamily

$53

$58

-$5

N/A

Retail

$44,366

$9,239

$35,127

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Office/R&D/Industrial

$6,050

$1,568

$4,482

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Hotel* 10 Notes: Jobs, revenues, and expenditures for single family, multifamily, retail, office/R&D/Industrial are modeled based on previous fiscal impact studies conducted by Strategic Economics. *Hotel tax revenues include transient occupancy tax, property tax, and sales tax revenue. Expenditures were not available. Sources: HA&A Hotel Market Research, 2015; STR Host Almanac, 2016; HVS Hotel Development Cost Survey; City of Morgan Hill, 2017; Vallen and Vallen, 2012; Strategic Economics, 2017. $43,490 N/A N/A

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