The various operations on the site are expected to employ 1,212 full and part-time workers. For the purposes of the impact analysis it is assumed a two-year period after construction is complete for this employment figure to be reached.
The Lincoln Beach Development will impact the state and local economies in both the construction and operational phases. During the construction phase, workers and construction firms will spend locally and that will create more income and spending in the local economy. This spending should begin to generate an increase in sales tax collections soon after construction commences.
Property taxes also will increase after the land is transferred to the Nolatown Development Group. When construction is ended, permanent employees and the operations located in the Development will create additional spending and higher sales tax collections. As structures are completed they will be added to the property tax rolls of the city and parish thereby increasing property taxes and after opening, the hotel will generate additional lodging tax receipts.
“Our primary objective is to develop the Lincoln Beach site into a world-class entertainment destination that would support the rebuilding efforts in New Orleans and provide a tremendous economic impact to the New Orleans East community and the City of New Orleans as a whole.”
RICKEY SPEARMAN, CHIEF DEVELOPER
The group estimates by employing the 1,212 full and part time employees, it will generate an additional 674 full and part-time jobs throughout Orleans Parish while also increasing payrolls by $37.75 million per year. During the construction phase, taxes received by the City of New Orleans are projected to increase by $2 million per year.
After the Development is fully occupied and the hotel is operational, the sales, property, and lodging taxes received by the City of New Orleans should increase to $3.6 million annually. Taxes collected by Orleans Parish will expand by $298,750 per year during construction and more than $875,000 after the Development is completed. State tax collections are projected to increase by more than $3.75 million per year. It is important to note that these taxes represent only twenty percent (20%) of the total taxes that are expected to be generated by this project.
The group assumed, based on an unrelated independent study, that 20 percent of projected retail sales from this project will be new sales, and that the remainder will be sales replacing those already occurring elsewhere in the city or parish. Additional studies show specialty retail, a category that includes small-scale Main Street businesses, has a positive impact on pubic revenue (i.e., it generates more tax revenue than it costs to service). Specialty retail produces a net annual return of $326 per 1,000 square feet. Other commercial land uses that are revenue winners include business parks, offices, and hotels.
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