(Sponsored article – paid for by West Davis Active Adult Community)
West Davis Active Adult Community serves as prototype
As Davis leaders revise their fiscal model that estimates how new development might affect the city’s general fund, the proposed West Davis Active Adult Community is first in line for the test.
Members of the Davis Finance and Budget Commission met Monday to review an early draft of that model, and to offer feedback and suggestions.
Assistant City Manager Mike Webb said the model “tries to be a one-size-fits-all” approach for assessing anything from six-home in-fill projects to large developments like the failed Covell Village project. It weighs the annual costs of providing public services against the revenues generated by the new development. Measured on a per-capita basis, it focuses solely on fiscal impacts to the city’s general fund.
Factors include inflation, real estate appreciation, and population and employment densities; the cost of parks and open space; a timeline for “absorption,” where the revenues catch up with expenditures; and property and sales tax income, among others. Once complete, the analysis serves as a litmus test when that project goes before the City Council.
The city first used this kind of fiscal model on Covell Village, proposed in 2004 for property at Pole Line Road and Covell Boulevard. The framework received a large overhaul in 2013, after the city hired Goodwin Consulting Group of Sacramento. Another revision came last year. Monday’s report is available on the city website at http://documents.cityofdavis.org/Media/Default/Documents/PDF/CityCouncil/Finance-And-Budget-Commission/Agendas/20170911/Item-6-A-Fiscal-Development-Model.pdf
On Monday, commissioners learned there are many variables that keep the West Davis Active Adult Community from fitting neatly into the model being used for traditional developments.
The West Davis Active Adult Community is marketed and designed for Davis’ older residents. Its plan calls for 325 small to medium single-story homes ranging from 900 to 1,800 square feet, along with 150 affordable senior apartments. Eighty percent of the homes and all the apartments would be restricted to residents 55 and older. Since the project is on the city’s periphery ‒ at Shasta Drive and West Covell Boulevard ‒ it would go before Davis voters under Measure R, likely in June 2018, if approved by the Davis City Council.
Dave Taormino, the real estate developer leading the West Davis project, told commissioners that the proposal has many financial benefits that weren’t reflected in Monday’s draft. He estimates the project’s assessed property tax value at $245 million. The city’s original estimate was $189.3 million.
“We project that 255 of the 360 homeowners are already living in Davis, and will be selling existing homes,” Taormino said, noting that the development will be advertised exclusively in Davis. He predicts that many of the out-of-town buyers will be relatives of current Davis residents.
If people move from within Davis, their old houses reset to a higher tax rate, which boosts city coffers, compared to sales to outside residents. Also, collected sales taxes would be higher per capita than student housing.
West Davis Active Adult Community is sponsoring this section on the Vanguard because we believe providing more information is better.
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