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6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125

www.chjc.com

Section 4: Existing Facilities Overview and Impacts | May 2017

Sports Market Business Strategy – Morgan Hill, CA

PAGE 51

FTE jobs, and $56,000 in tax revenues. Morgan Hill would receive $8,000 of the sales tax revenues, $6,000 of

which is through visitor impacts.

IMPACT OF THE OUTDOOR SPORTS CENTER

Table 4-16 summarizes the estimated economic and fiscal impact of the soccer and non-soccer tournaments

at the Outdoor Sports Center, combined, annually.

Table 4-16

As shown in the table, activities at the Outdoor Sports Center are estimated to have generated $11.8 million

in total spending, $3.6 million in increased earnings, 83 FTE jobs, and $564,000 in tax revenues, annually.

Visitor impact resulting from out-of-town visitors to Morgan Hill is estimated to have included $9.8 million in

total spending, $3.0 million in increased earnings, 68 FTE jobs, and $474,000 in tax revenues. Morgan Hill

would receive $60,000 of the sales tax revenues, $49,000 of which is through visitor impacts.

COMBINED IMPACTS OF THE AQUATICS CENTER AND OUTDOOR SPORTS CENTER

The table below provides a summary of the combined projected economic and fiscal impacts of the Aquatics

Center and Outdoor Sports Center.

Morgan Hill Outdoor Sports Center

Soccer and Non-Soccer Tournaments (2016)

Economic and Fiscal Impact

Economic Impact ($000)*

Multiplier

Resident

Impact

Visitor

Impact

Total

Direct Spending

$1,134

$5,424

$6,557

Indirect Spending

0.4500

510

2,441

2,951

Induced Spending

0.3570

405

1,936

2,341

Total Spending

$2,049

$9,801 $11,849

Increased Earnings

0.5550

$629

$3,010

$3,640

Employment (FTE Jobs)

12.6057

14

68

83

Fiscal Impact ($000)*

Tax Rate Resident

Impact

Visitor

Impact

Total

Sales Tax **

8.75%

$90

$432

$522

Transient Occupancy Tax

10.00%

0

42

42

Total Tax Revenue

$90

$474

$564

*Figures are rounded to the nearest thousand

** Total sales tax is 8.75%. City of Morgan Hill receives 1% of gross sales, or $60,000.

Source: Johnson Consulting