28 / 61
28
While the vacancy rate (Figure 14) has
improved significantly over recent years
(currently between 3 to 7%), the conversion
of employment lands for residential uses
has potentially problematic fiscal
consequences. As shown in Figure 15, on a
per acre basis, new commercial
development brings a much higher level of
revenues to the City of Morgan Hill, even
after accounting for increased costs of
providing services.
Figure 15. Estimated Annual Revenues, Expenditures, and Jobs per Acre by Land Use
Development Type
Land Use
Development Type
Revenues per
Acre
Expenditures
per Acre
Net Revenues
per Acre
Jobs per
Acre
Single Family
$222
$175
$47
N/A
Multifamily
$53
$58
-$5
N/A
Retail
$44,366
$9,239
$35,127
29
Office/R&D/Industrial
$6,050
$1,568
$4,482
26
Hotel*
$43,490
N/A
N/A
10
Notes: Jobs, revenues, and expenditures for single family, multifamily, retail, office/R&D/Industrial are
modeled based on previous fiscal impact studies conducted by Strategic Economics.
*Hotel tax revenues include transient occupancy tax, property tax, and sales tax revenue. Expenditures
were not available.
Sources: HA&A Hotel Market Research, 2015; STR Host Almanac, 2016; HVS Hotel Development Cost
Survey; City of Morgan Hill, 2017; Vallen and Vallen, 2012; Strategic Economics, 2017.