REE Case Study: Economic and Fiscal Impact Analysis for the Mixed-Use District NoHo Development

The Challenge

As part of a joint development effort with the Los Angeles County Metropolitan Transportation Authority (Metro), NoHo Development Associates, LLC (“the Client”) was planning the development of District NoHo, a 2 million square foot master-planned, mixed-use development comprising approximately 16 acres of transit-adjacent land owned by Metro. In line with Metro’s North Hollywood Guide for Development and the goals of future neighborhood plans, the overall vision for District NoHo was a high-intensity, transit-oriented development with a mix of uses that included residential, retail/restaurant, and office space integrated with bicycle, bus, rail, and parking facilities. Interested in the development’s long-term effects, the Client engaged RCLCO to help demonstrate the likely fiscal and economic impacts of the proposed development, including an analysis of both one-time and recurring impacts.

Solution

In terms of quantifiable impacts, RCLCO’s approach to this analysis broke the economic and fiscal impacts out into one-time impacts, or the construction-related impacts, and the recurring (annual) impacts from the development’s operations. The estimated economic impacts projected the creation of 15,000 jobs during the construction phase, and just under 5,000 jobs per year during the operations phase. In addition, RCLCO’s analysis projected a net positive fiscal impact at stabilization. Beyond this, RCLCO identified other impacts that the development was likely to have, including continued growth of the submarket, inflated daytime population driving increased retail demand, and new affordable housing adding much-needed supply for lower-income households.

Impact

RCLCO’s fiscal and economic impact analysis findings helped inform the developer of the potential effects of the proposed District NoHo development on the City and region as a whole. Construction of the development is anticipated to occur in phases over a 15-year period, with the first phase being the affordable housing and new bus infrastructure in late 2023.