Club submits economic study

 

Club submits economic study

 

Date: June 25, 2009
by: Kurt Schultheis | City Editor

 
 

An economic and fiscal impact analysis of the Longboat Key Club and Resort’s $400 million Islandside renovation plan states the club will generate substantial economic and fiscal benefits for both the town and its residents.

The study, prepared by Orlando-based Fishkind & Associates Inc., was submitted as part of the club’s revised application to the Planning, Zoning and Building Department earlier this month.

According to the study, the project will:
• Generate a cumulative net fiscal surplus of more than $1 million over the first five years.
• Create 280 full-time jobs on-site, create more than 500 jobs supported directly or indirectly from the project and create an increase of almost $40 million in total economic impact per year.
• Increase property values by 7% to 12% from the renovations and improvements to the Islandside golf course and club facilities.

The study also shows that the project will produce a fiscal surplus of more than $17 million, with a present value of $3.9 million over a 30-year period. According to the study, the present value of the net cumulative surplus of $3.9 million equals 24% of the town’s general fund budget, which the town could use to reduce taxes, increase services or use a combination of the two.

Above is a summary of the net fiscal impacts of the renovation plan on the town’s budget.
 

ECONOMIC STIMULUS

A summary of net fiscal impacts of the Islandside renovation plan for the town of Longboat Key.
                                 
                                  5 years          10 years        20 years         30 years
Operating revenue    $3,873,963    $9,929,875    $24,438,516    $42,907,483

Operating cost
          $2,659,203    $6,267,552    $14,864,076    $25,725,441

Operating net impact
$1,214,761    $3,662,323    $9,574,440      $17,182,043

Operating present value
$814,225    $1,961,019    $3,334,585    $4,015,829

Capital Revenue 
              $0               $0                 $0                  $0

Capital Cost
                      $112,604    $112,604    $112,604    $112,604

Capital Net Impact           -$112,604    -$112,604    -$112,604   -$112,604

Combined Net Impact    $1,102,157    $3,549,719    $9,461,836  $17,069,439

Combined Present Value
$719,235    $1,866,029    $3,239,596    $3,920,840

Source: Fishkind & Associates Inc.

ANSWER ME THIS

Fulltime Longboat Key residents received calls Sunday, June 14 through Sunday, June 21 from a public-relations firm that conducted seven-minute surveys.

Residents were asked questions from a live person about how they felt about growth and specific questions about the Longboat Key Club and Resort’s Islandside renovation plan.

Key Club General Manager Michael Welly could not be reached for comment regarding the survey.

 

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