THE ECONOMIC AND FISCAL IMPACT OF THE PROPOSED TOURO UNIVERSITY VILLAGE DEVELOPMENT A Presentation to the Vallejo Chamber of Commerce June 13, 2007 Gruen Gruen + Associates

PURPOSE Estimate the economic and fiscal impacts on the City of Vallejo and Solano County resulting from: Construction activities and expenditures; On-site sale of retail goods and services; Operations of health services and bio-technology-related tenants; Operations of 146-room hotel; Expenditures made by students and faculty members living in campus housing units; and Expenditures made by Touro University to operate and maintain facilities.

METHODOLOGY Utilized input-output model, IMPLAN, to estimate total economic impacts in terms of:  Employment (number of jobs created);  Income (additional wages and salaries generated); and  Output (volume of added production/activity). Two economic impacts considered:  “One-Time” – the economic impact attributable to construction process  “On-Going” – the economic impact attributable to day-to-day operations

Increase in Human Capital Touro University Village Economic Benefits Touro University Village Economic Benefits Creation of Jobs Attraction of Students and Visitors Direct Expenditures Entrepreneurial Activities Employee Spending Student and Faculty Spending Attraction of High Skill Workers Productivity Increase Multiplier Effects Economic Impact to Vallejo and Solano County Economic Impact to Vallejo and Solano County

PROPOSED DEVELOPMENT Touro University Village Land Use Plan Number of Facilities Total Land Area # Acres Planned Building Space # Square Feet Research & Development ,346 Retail26.651,589 Hotel ,365 / 146 rooms University Flex27.757,500 Community Center ,560 Student and Faculty Housing ,400 / 290 units TOTAL ,237,760 Sources: ARCADIS, INC.; Touro University; Gruen Gruen + Associates

ECONOMIC IMPACT ON SOLANO COUNTY OutputIncomeEmployment Direct$210,774,600$110,864,7001,931 Indirect$126,542,800$43,486,6001,133 Total$337,317,400$154,351,3003,064 Multiplier Average Annual Impact of Construction Expenditures Sources: MIG, Inc; Gruen Gruen + Associates

ECONOMIC IMPACT ON SOLANO COUNTY OutputIncomeEmployment Direct$205,128,000$99,235,0001,556 Indirect$130,657,000$42,892,0001,135 Total$335,785,000$142,127,0002,691 Multiplier Average Annual Impact of On-Going Operations Sources: MIG, Inc; Gruen Gruen + Associates

ECONOMIC IMPACT ON CITY OF VALLEJO OutputIncomeEmployment Direct$210,774,600$110,864,7001,931 Indirect$104,566,600$39,244,0001,018 Total$315,341,200$150,108,7002,949 Multiplier Average Annual Impact of Construction Expenditures Sources: MIG, Inc; Gruen Gruen + Associates

ECONOMIC IMPACT ON CITY OF VALLEJO OutputIncomeEmployment Direct$204,862,000$99,132,0001,553 Indirect$59,023,000$21,307, Total$263,885,000$120,439,0002,123 Multiplier Average Annual Impact of On-Going Operations Sources: MIG, Inc; Gruen Gruen + Associates

FISCAL BENEFITS TO CITY OF VALLEJO Annual Tax Revenues Property Tax$1,001,500 Sales Tax$200,900 Transient Occupancy Tax$820,700 TOTAL$2,023,100 Sources: City of Vallejo; Gruen Gruen + Associates Franchise tax, utility user tax, property transfer tax, and business license tax revenues will also be generated as will sales tax attributable to employees of occupants of the development.