"THE CONSTRUCTION OF A NEW HIGH SCHOOL IN MORA WILL GENERATE AN ESTIMATED $80.5 MILLION IN ECONOMIC ACTIVITY IN THE COUNTY" UNIVERSITY OF MINNESOTA EXTENSION PROPERTY TAXES WILL INCREASE WHETHER WE BUILD A NEW SCHOOL OR REPAIR THE CURRENT BUILDING. VOTERS DATE: APRIL 17, 2020 TO: MR. BRENT NELSON, PRINCIPAL, MORA HIGH SCHOOL DECIDE ON MAY 12. FROM: BRIGID TUCK, SENIOR ECONOMIC IMPACT ANALYST RE: ECONOMIC IMPACT OF CONSTRUCTION VOTING YES FOR NEW CONSTRUCTION This memo reports the results of a basic analy sis of the potential economic impact of the construction of a new high school in Mora, Minnesota. The direct imestment of S619 million would support a building designed to implement vocational and STEM curriculum, accommodate best practices in edacation, and comply with modern building standards. WILL MEAN: A modern school with all health and safety CONSTRUCTION In the short-term, construction of a new high school will impact the local econcmy through the construction activity. The economic activity generated by construction will dissipate when the construction phase of the project ends. issues addressed. Economic impact is comprised of direct, indirect, and induced effects. Direct effects are those generated by the event itself. For this analy sis, the direct effect is the construction and outfitting of the new high school building. Indirect and induced effects are the ripple effects created across the local supply chain when direct spending occurs. For example, if a local construction-related firm won the bid to provide services, that would cause the firm to increase its expenditures, thereby increasing demand on other local businesses. Likewise, if construction workers at the site buy lunch or make purchases in Mora, this caases those businesses to increase their purcha 380 construction jobs. An initial step of an economic impact analysis is to quantify the direct effectiect and induced effects are then measared using a multipliers. Multipliers are generagadiom input output models. The input-output model used in this analysis is the RIMtl model created by the US. Burcau of Economic Analysis, The RIMS I multipliers arealable for purchase by the public. Estimated $18.6 million in There are three metrics by which economic impactn be measured - output, employment, and economic activity generated at businesses beyond the labor income. Direct Effect: Construction of the propagedw high school will cost s61.9 million - this is the direct effect. The RIMS I data estimate 80 construction and related workers will be needed to complete the work. The model also estres these workers will be paid S24.8 million. The remaining 537.1 million will be spent on inputs into the construction process. Major expenditures for nonresidential constraction include wholesale trade for items such as heating and cooling systemsi, concrete, engineering services, and trucking construction site. That's 66% more than the $11.2 milion that Indirect and Induced Effects: The output construction multiplier for Kanabec County is 1.3. This means an estimated SI86 million in economic activity will be generated at businesses beyond the construction site. Businesses that might benefit include trucking, wholesale trade, electric power, and restaurants commercial property owners will pay in property taxes for their share of the repayment of bonds on the new school. In addition, the model estimate 110bs at businesses outside of the costruction field will be supported by the construction Thee may onspw jobs, but jobs that may see additional hours or project opportunities stemming from the construction 110 jobs outside of the The constroction project would provide an estimated S43 million in labor income to the 110 jobs supported. construction project. The input output model considers all direct construction effects to be local, since the construction company is on site to perform the woek (regardless if it is a locally or non locally based company From there, the model makes assumptions, based cn local supply, demand, and construction purchasing patterns, for the amount of supplies purchased locally. An estimated total of Total Effects: In total, the construction of a new high school in Mora will generate an estimated S80.5 million in economic activity in the county. This inclades $29.1 million in labor income. The construction will support 490 jobs $80.5 millionin economic If you have questions about this analysis, please contact Beigid Tuck at tackbeumn.edu. activity in our county. A UNIVERSITY OF MINNESOTA EXTINSION 2g ty e ve ety oete t ndeye ccordance wh he nercan w Daaen Aa a mateate natematve Pedon ydad y percent poon en t. Drect regu 124- VOTE MAY 12 AT MORA CITY HALL. VOTE YES! SAME PRICE. BETTER SCHOOL. Paid Adertisement. Prepared and paid for by the Vote s 332 Commisee, PO Bo 141, MN 55051 "THE CONSTRUCTION OF A NEW HIGH SCHOOL IN MORA WILL GENERATE AN ESTIMATED $80.5 MILLION IN ECONOMIC ACTIVITY IN THE COUNTY" UNIVERSITY OF MINNESOTA EXTENSION PROPERTY TAXES WILL INCREASE WHETHER WE BUILD A NEW SCHOOL OR REPAIR THE CURRENT BUILDING. VOTERS DATE: APRIL 17, 2020 TO: MR. BRENT NELSON, PRINCIPAL, MORA HIGH SCHOOL DECIDE ON MAY 12. FROM: BRIGID TUCK, SENIOR ECONOMIC IMPACT ANALYST RE: ECONOMIC IMPACT OF CONSTRUCTION VOTING YES FOR NEW CONSTRUCTION This memo reports the results of a basic analy sis of the potential economic impact of the construction of a new high school in Mora, Minnesota. The direct imestment of S619 million would support a building designed to implement vocational and STEM curriculum, accommodate best practices in edacation, and comply with modern building standards. WILL MEAN: A modern school with all health and safety CONSTRUCTION In the short-term, construction of a new high school will impact the local econcmy through the construction activity. The economic activity generated by construction will dissipate when the construction phase of the project ends. issues addressed. Economic impact is comprised of direct, indirect, and induced effects. Direct effects are those generated by the event itself. For this analy sis, the direct effect is the construction and outfitting of the new high school building. Indirect and induced effects are the ripple effects created across the local supply chain when direct spending occurs. For example, if a local construction-related firm won the bid to provide services, that would cause the firm to increase its expenditures, thereby increasing demand on other local businesses. Likewise, if construction workers at the site buy lunch or make purchases in Mora, this caases those businesses to increase their purcha 380 construction jobs. An initial step of an economic impact analysis is to quantify the direct effectiect and induced effects are then measared using a multipliers. Multipliers are generagadiom input output models. The input-output model used in this analysis is the RIMtl model created by the US. Burcau of Economic Analysis, The RIMS I multipliers arealable for purchase by the public. Estimated $18.6 million in There are three metrics by which economic impactn be measured - output, employment, and economic activity generated at businesses beyond the labor income. Direct Effect: Construction of the propagedw high school will cost s61.9 million - this is the direct effect. The RIMS I data estimate 80 construction and related workers will be needed to complete the work. The model also estres these workers will be paid S24.8 million. The remaining 537.1 million will be spent on inputs into the construction process. Major expenditures for nonresidential constraction include wholesale trade for items such as heating and cooling systemsi, concrete, engineering services, and trucking construction site. That's 66% more than the $11.2 milion that Indirect and Induced Effects: The output construction multiplier for Kanabec County is 1.3. This means an estimated SI86 million in economic activity will be generated at businesses beyond the construction site. Businesses that might benefit include trucking, wholesale trade, electric power, and restaurants commercial property owners will pay in property taxes for their share of the repayment of bonds on the new school. In addition, the model estimate 110bs at businesses outside of the costruction field will be supported by the construction Thee may onspw jobs, but jobs that may see additional hours or project opportunities stemming from the construction 110 jobs outside of the The constroction project would provide an estimated S43 million in labor income to the 110 jobs supported. construction project. The input output model considers all direct construction effects to be local, since the construction company is on site to perform the woek (regardless if it is a locally or non locally based company From there, the model makes assumptions, based cn local supply, demand, and construction purchasing patterns, for the amount of supplies purchased locally. An estimated total of Total Effects: In total, the construction of a new high school in Mora will generate an estimated S80.5 million in economic activity in the county. This inclades $29.1 million in labor income. The construction will support 490 jobs $80.5 millionin economic If you have questions about this analysis, please contact Beigid Tuck at tackbeumn.edu. activity in our county. A UNIVERSITY OF MINNESOTA EXTINSION 2g ty e ve ety oete t ndeye ccordance wh he nercan w Daaen Aa a mateate natematve Pedon ydad y percent poon en t. Drect regu 124- VOTE MAY 12 AT MORA CITY HALL. VOTE YES! SAME PRICE. BETTER SCHOOL. Paid Adertisement. Prepared and paid for by the Vote s 332 Commisee, PO Bo 141, MN 55051