RCGA Economist's Economic Impact Analysis of Ballpark Village: $273 million annual impact; 3,040 job impact + construction

RCGA Economist's Economic Impact Analysis of Ballpark Village: $273 million annual impact; 3,040 job impact + construction

October 27, 2006

Contacts: Gary Broome or Bryan Bezold, 314.444.1171
St. Louis Regional Chamber and Growth Association

RCGA ECONOMIST’S ECONOMIC IMPACT ANALYSIS OF BALLPARK VILLAGE: $273 million annual impact; 3,040 job impact + construction

ST. LOUIS (October 27, 2006) – The announcement today of the agreement between the City of St. Louis, the St. Louis Cardinals, and the Cordish Company represents a significant net positive economic impact for the City of St. Louis and the bistate St. Louis region, according to an economic impact analysis by RCGA Chief Economist Bryan Bezold.

According to Bezold’s just-completed economic impact analysis: Phase I of the Ballpark Village project will provide an annual $273 million economic benefit to the St. Louis region when completed; in the interim, construction of the initial phase of the project will generate an economic impact of $724 million. Further, the first phase of the development will have a total employment impact of 3,040 permanent jobs, and there will be another 3,000 construction jobs throughout the course of the total development. Estimated net fiscal benefit to the City of St. Louis is $291 million, with $142 million to the St. Louis Public Schools.”

When Phase I of the project is complete, it is projected that:

The businesses in the Village will employ 1,969 people.
Those 1,969 jobs will support another 1,070 jobs elsewhere in the St. Louis region.
The total, indirect and direct, employment impact of the Ball Park Village Project will thus be
approximately 3,040 jobs.
In dollars, that total impact will be approximately $273 million annually.
According to Cordish Company estimates, Phase I of the project will provide significant direct
fiscal benefits to the City, including:

An additional $291 million in new tax revenue for the City over the next 40 years.
An additional $142 million in new tax revenue for St. Louis Public Schools over the same period.
Added fiscal impact analysis is being undertaken.

The economic impact of the ongoing commercial operations will come after the construction process, which will also have a significant economic impact:

The construction of the $387 million project will support approximately 1,600 jobs.
Those 1,600 jobs will support another 1,400 jobs elsewhere in the region, for total employment of impact of approximately 3,000 jobs.

In addition to the direct and quantifiable impacts which Bryan has documented, the ‘civic capital’ created by this new multi-block mixed use development will be substantial. This project will favorably showcase St. Louis --- and the continuing revitalization of downtown St. Louis --- throughout the nation, noted RCGA President and Chief Executive Officer Richard C. D. Fleming.

The direct economic impact of Ballpark Village is economic activity that takes place at the site, either during the construction process or at the restaurants, offices, and shops that will be located there. The indirect impact is the dollars and jobs that will result from that activity – at business that supply the businesses at the site, and at the retail establishments elsewhere in the region where employees of businesses at the Village spend their salaries. The total economic impact is the sum of the direct (on-site) and indirect (off-site) impact. The indirect and total impact estimates were developed with an Input/Output model called IMPLAN, customized to the 16-county St. Louis metropolitan area.

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About the St. Louis Regional Chamber
The St. Louis Regional Chamber is the chamber of commerce and economic development organization for the 16-county, bi-state region. The mission of the RCGA is to unite the region’s business community, and to engage dynamic business and civic leadership to develop and sustain a world-class economy and community.