City leaders today released a report examining the economic and fiscal impact of the proposed Harrison Square development. The analysis indicates that Harrison Square is projected to have a positive overall effect on the local economy. The report was conducted by Crowe Chizek, a public accounting and consulting firm with offices in several states including
Report highlights:
Fiscal Impacts
Harrison Square offers an opportunity for the collection of revenue from a variety of tax streams, including state sales, state income, innkeepers, COIT and CEDIT, food and beverage, and property. The tax impact in 2010, the first year the project components are anticipated to be operational, may generate more than $1.8 million in new tax revenue for state and local governmental units. Over a 10-year period, the tax impact could reach $28 million.
Direct Economic Impacts
New jobs, household earnings to those employed by Harrison Square and output will provide a direct economic impact. The construction of the development will bring $106 million in output, create 854 jobs and yield over $31 million in household earnings. Once constructed, the project, in its first year of operation, may yield over $20 million, create 366 new jobs and result in more than $5.6 million in household earnings. Over a 10-year period, the total output may be over $245 million, may create 471 jobs and may increase household earnings by nearly $68 million.
Indirect Economic Impacts
Additional businesses and industries in the community provide an indirect economic impact as a result of the direct economic activity. The construction of Harrison Square will have an indirect impact of over $147 million in output, create 1,176 jobs and yield $43 million in household earnings. Once constructed, the project, in its first year of operation, may yield over $26.4 million, create 414 new jobs and result in $7 million in household earnings. Over a 10-year period, the total output may be over $313 million, may create 530 jobs and may increase household earnings by over $83.6 million.
“We are encouraged by the positive economic opportunities Harrison Square will offer to our community and region,” said Mayor Graham Richard. “Gaining and retaining jobs, creating a destination place downtown to live, work and play and building on a great quality of life will make