Analysis of economic development Construction cost modeling Construction economic impact Economic output resulting from ongoing activity

1. a project of the Wingate University
Porter B. Byrum School of Business
April 23rd, 2020

2. Intro
Town of Matthews
● ‘Built-out’ area; most land is already in use
○ Little space available for new
development
● Current initiatives are looking to repurpose
areas that were previously in use
● What area would benefit most from being
repurposed?

3. Land
Available Land
Family Dollar HQ property
Available Land
● Family Dollar Inc. headquarters
closed leaving roughly 100 acres of
land to be repurposed
● Goal is to create two development
scenarios for land and detail
economic impact on the Town of
Matthews

4. Location
● The Family Dollar HQ property that we are proposing for redevelopment is a prime location,
sitting directly adjacent to the proposed light rail Silver Line extension
Proposed land for
new development
Lynx Silver Line
Expansion

5. Scenario 1:
● 100 acres of Family Dollar HQ
land used as mixed-use
development
○ 55% residential
○ 45% commercial
● Comprehensive live-work-play
community that includes housing
for all ages
● Prime location near proposed
expansion of light rail
Mixed-use development with Senior Living
Multi-family
living
Health care
Retail Recreation
Grocery Outdoor space
Offices Senior living
Based on the mixed use
developments studied & the
specificities of the Town of
Matthews, we created a
development plan focused on
family residences, services and
care:

6. Scenario 2:
● 100 acres of Family Dollar HQ
land used as mixed-use
development
○ 55% residential
○ 45% commercial
● Live-work-play theme with
housing, offices, restaurants and
retail within development
● Prime location, land is near
proposed light rail expansion to
provide access to Uptown and
further
Mixed-use development
Multi-family
living
Health care
Retail
Recreation
Grocery Outdoor space
Offices
Based on the mixed use
developments studied & the
specificities of the Town of
Matthews, we created a
development plan focused on
family residences, services and
care:

7. ● Magnolia, Texas
Similar Developments
● 100 acre mixed-use development
● $50-$70 million construction cost
● Residential
○ Large lots
○ Smaller single-family homes
○ Townhomes
● Commercial
○ Big-box retailer
○ Junior anchor
○ Smaller pad sites for retail and
dining options.

8. Similar Developments
● Charlotte, NC - Charlotte Golf Links / Rea Farms
● 130+ acres
○ 500 apartments
○ 200 single-home structures
○ 412,000 square feet of office space
○ 100,000 square feet of retail
○ 192,000 square feet athletic facility
○ A K-8 school is underworks: STEM & Arts
○ Centered around 5 acres green space
● Offers city-like amenities with a suburban layout.
● Based on Blakeney or Birkdale Village
○ Improper Pig,Tandur Indian Kitchen, Pizza
Peel
○ Upscale men’s barbershop chain

9. Similar Developments
● South Springfield, Missouri
● 100 acres of commercial, residential and
senior living spaces.
● 60 acres of commercial space for potential
tenants including restaurants, hotels, offices,
retail centers and lofts, as well as bike trails
and natural elements to form a park-like
environment
● 40 acres for a senior living continuum-of-care
community
● Estimated value at $500 Million.

10. Methodology
▪ IMPLAN
▪ Economic impact analysis software
▪ Create economic models
▪ AccessNC by NC Department of Commerce
▪ Current business information
▪ Charlotte Business Journal
▪ Development information
▪ Buildingjournal.com - Construction costs
▪ Miscellaneous websites – Development plans
for residential and commercial use
What did we use?

11. IMPLAN
Terminology
● Input-Output program
○ User inputs direct investments (new
businesses, construction, jobs, etc.), Software
outputs impact effects
● Software delivers direct, indirect, and induced
effects
○ Direct: immediate result of direct spending
○ Indirect: business-to-business spending
○ Induced: household spending

12. Implan gives dollar value “output” and
“value added” information
Implan Results
Value Added:
● Generally equivalent to GDP; does not include intermediate
inputs
Output:
● Total value of spending, includes intermediate inputs

13. Based on the mixed use developments studied & the
economic summary of the town of Matthews given
by Implan, we created a development plan focused
on family residences, services and care
● 55% Residential
○ Multi-family structures
○ Senior Living
● 45% Commercial
○ Retail
○ Restaurants
○ Offices
○ Recreational Sports
Plot Division
Industries Selected

14. Computation of Construction Cost
Construction cost estimate was done through
BuildingJournal.com
Project Location : North Carolina - Charlotte
● Commercial Cost Estimate
● Type of work : Lump Sum
● Cost Index : Median

15. Construction Scenario
20% range (0.90-1.10): 1,350,00 to 1,650,000 square feet
Estimate Cost with Senior Living: $89 M - $110m
Without Senior Living: at least $7.2 M cheaper

16. Results of Construction Scenario

17. Results of Construction Scenario
Top 15 Industries by Growth Percentage

18. Results of Construction Scenario
Notable Sectors in Industry Output
● Management of companies & enterprises - $1,044 M
● Real Estate - $216 M
● Retail - over $125 M
● Data preprocessing services - $124 M
● Full Service Restaurants - $93 M

19. Results Of Construction Scenario
● Local & State Tax: estimated revenue of $1,222,032 generated in local & state taxes.

20. Computation of Ongoing Activity
● 2 scenarios
○ One with Senior Living
○ One without Senior Living
● We considered existing business types in
Matthews
○ Judgement was based on IMPLAN dollar
amounts for Demand, Value Added, and Total
Output
○ The sectors existing in all three were chosen
● We also considered sectors that would fit in
with the existing businesses
● Dollar amounts were summed for each
sector
● A percentage system was created to
accommodate the $100 million in output
this land development plan will create

21. Output Scenario 1: With Senior Living
● Health services is given $6,678,207 of the
overall $100 million
○ This is split up into 2 sectors
■ Offices of physicians
■ Nursing and community care
services
● Pros:
○ Living options for all ages
○ More diverse job field
○ Boost in the local pharmacy industry
○ Opportunity to draw in more families to
the area
● Cons:
○ Less standard residential living
○ Fewer workers living in Matthews
○ Already four facilities in the area
○ Can be considered wasted space if the
local senior population declines

22. Results of Output Scenario 1
● Total Supported Jobs: 490
○ 487 Directly
○ 3 indirectly
○ <1 induced
● Total Labor Income: $46,901,427
○ $46,700,948 directly
○ $181,800 indirectly
○ $18,679 induced
● Total Output: $95,817,294
○ $95,270,591 directly
○ $496,560 indirectly
○ $50,143 induced
● Local Tax Revenues
○ Sales Tax- $2,131,043
○ Property Tax- 1,436,789
○ Motor Vehicle License- $60,122
○ Other Taxes- $208,617
○ Corporate Profits Tax- $109,155
○ Personal Tax: Income Tax- $88,103
○ Personal Tax: Motor Vehicle License-
$4,329
○ Personal Tax: Property Taxes- $1,188

23. Output Scenario 2: Without Senior Living
● The full $6,678,207 of the overall $100
million is given to Offices of physicians
● Pros:
○ More diverse living options overall
○ More people who will be a part of the
workforce
○ Increase in tax revenue
○ Increase of students in local schools
● Cons:
○ Traffic levels will increase
○ May need new schools or teachers to help
with the influx of new students
○ Local businesses can be put in a strain due to
the increase of new residents

24. Results of Output Scenario 2
● Total Supported Jobs: 462
○ 459 directly
○ 3 indirectly
○ <1 induced
● Total Labor Income: $47,327,366
○ $47,127,399 directly
○ $180,841 indirectly
○ $19,126 induced
● Total Output: $95,810,862
○ $95,270,591 direct
○ $488,931 indirect
○ $51,340 induced
● Local Tax Revenues
○ Sales Tax- $2,114,297
○ Property Tax- $1,425,498
○ Motor Vehicle License- $59,649
○ Other Taxes- $206,978
○ Corporate Profits Tax- $110,018
○ Personal Tax: Income Tax- $90,331
○ Personal Tax: Motor Vehicle License-
$4,430
○ Personal Tax: Property Taxes- $1,217

25. Discussion
● Overall, Scenario 1 with senior living
generates higher numbers than Scenario 2
without senior living
○ 28 more jobs
○ $6432 more in total output
○ $26928 more in tax revenue
● Oddly, Scenario 2 without senior living would
generate $425,939 more in labor income than
Scenario 1 with senior living

26. About us
Matthew Warren
Matthew is a graduating
senior from Wingate
University, majoring in
Mathematics-Business
and minoring in
Economics.
Victoria Casiano
Victoria is a senior
Finance major at
Wingate University with
minors in both
accounting and
economics. She is from
Charlotte, NC.
Darius Choveaux Gros
Darius is a senior
Mathematics Major at
Wingate University with a
minor in economics. He’s
from Lille, France and plays
in the Wingate Men’s Golf
Team.
Collin Hinson
Collin is a junior
Mathematics major at
Wingate University with
a economics minor.

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