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Section 2: Introduction and Executive Summary

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May 2017

Sports Market Business Strategy – Morgan Hill, CA

PAGE 11

6 East Monroe Street

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Fifth Floor

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Chicago, Illinois 60603

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Phone: 312.447.2010

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Fax: 312.444.1125

www.chjc.com

Table 2-6

As shown in the table, activities at the Aquatics Center are estimated to have generated $7.0 million in total

spending, $2.2 million in increased earnings, 49 FTE jobs, and $353,000 in tax revenues, annually. Visitor

impact resulting from out-of-town visitors to Morgan Hill is estimated to have included $6.1 million in total

spending, $1.9 million in increased earnings, 42 FTE jobs, and $307,000 in tax revenues. Morgan Hill would

receive approximately $38,000 in sales tax revenues, $32,000 of which is through visitor impacts.

Table 2-7 summarizes the estimated economic and fiscal impact of the soccer and non-soccer tournaments at

the Outdoor Sports Center, combined, annually.

Morgan Hill Aquatics Center

Summer Recreation Swimming Use and Swim Meets, Combined

Economic and Fiscal Impact

Economic Impact ($000)*

Multiplier

Resident

Impact

Visitor

Impact

Total*

Direct Spending

$528

$3,368

$3,897

Indirect Spending

0.4500

238

1,516

1,754

Induced Spending

0.3570

189

1,203

1,391

Total Spending

$955

$6,087

$7,042

Increased Earnings

0.5550

293

1,870

$2,163

Employment (FTE Jobs)

12.6057

7

42

49

Fiscal Impact ($000)*

Tax Rate Resident

Impact

Visitor

Impact

Total*

Sales Tax **

8.75% $46

$284

$330

Transient Occupancy Tax

10.00%

0

23

23

Total Tax Revenue

$46

$307

$353

*Figures are rounded to the nearest thousand

** Total sales tax is 8.75%. City of Morgan Hill receives 1% of gross sales, or $38,000.

Source: Johnson Consulting