DEPARTMENT: Economic Development
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
2017 Estimated Return on Investment (ROI) of Economic Development Incentives
SUMMARY:
This EWDC presentation will review the methodology and results of a return on investment (ROI) analysis performed by the SABER Institute on the City of San Antonio's economic development incentive programs. The ROI Study reviewed 72 currently active projects ranging from 2003 to the year 2037. The study took into account revenue inflows and outflows resulting from economic development incentives over this period of time. The study finds that economic development incentive programs resulted in a return of $5.22 for every $1 invested in incented projects.
BACKGROUND INFORMATION:
The purpose of this presentation is to review the study findings by the SABER Institute which calculated a "return on investment (ROI)" for all the active projects in which the City has provided business incentives (primarily tax abatements and grants) in generating jobs and investment for the community. The ROI is expressed in terms of the fiscal impact to the City from new sales and property taxes, hotel occupancy taxes and CPS Energy revenues from the project. EDD conducted a similar study in 2008, the current study builds upon that analysis and includes new projects and updated actual revenue inflow and outflow data through 2016.
The start of the study captures projects initiated in 2003 that are currently being monitored. The end date of 2037 is based on the current terms of existing incentive agreement commitments. While older projects exist and continue to contribute to general fund revenues, this study focuses solely on those projects currently being monitored by the Economic Development Department.
Through a substantial data collection and analysis process on each project, the analysis compares the outflow of funds associated with the incentives to the inflows of r...
Click here for full text