Economic Impact Analysis for One Washington Place
The Economic Impact Analysis for One Washington Place has now been completed. The report includes two main sections: First the economic impacts of the construction phase of the project are estimated for Kane County. The second section estimates economic activity associated with the development. Expected spending patterns based on a projected profile of residential tenants is presented as well as economic activity associated with potential commercial tenants of the One Washington Place building. Here are some highlights:
- The temporary economic impacts of the construction phase will be significant. Total employment resulting from the project will be more than 400 person-years. One person holding a construction job for three years is counted as three person-years. Persons filling those jobs will earn nearly $23.4 million. Economic activity will increase by more than $67 million in Kane County.
- A 2014 report1 examining housing stock in the Fox River valley suggested that this type of housing will be in short supply in Batavia. According to the report, “Because of population growth expected across the income spectrum, there may be unmet demand for [housing appropriate for] renters earning more than $75,000” (p. 13). Specific to Batavia, the report states “If Batavia’s rental housing stock does not keep up with the projected increases in demand, there could be a shortage of units affordable to households earning more than $100,000 annually” (p. 36). Once complete, residential tenants will potentially have annual expenditures of nearly $15 million. While the majority of this spending will go towards housing, transportation, and healthcare, significant expenditures will occur in retail and service sectors that are present in Batavia. For example building residents will likely spend over $750,000 eating at restaurants. A similar amount could be spent in entertainment venues.
- Sales at potential commercial tenants of the building could be in the neighborhood of $2.7 million. This includes retail store sales of about $1.5 million and restaurant receipts of $1.2 million. Employees of these businesses may earn a total of nearly $870,000.