Economic Impact Report
The purpose of this report is to lend support to a request from the Manhattan Area Technical College (MATC) for partial funding of a new technical education center on the MATC campus. The facility is projected to cost a total of $16.3 million and the MATC is requesting that the City of Manhattan provide $1.3 million of the cost based upon the projected sales tax and city utility revenues that the new MATC staff employees and graduates of the technical programs could produce for the city.
As documented below and in the Appendices of this report, the MATC plan could have the following economic impact on the City of Manhattan over the next ten years:
- Increase in local sales tax revenues of about $1,556,000.
- Increased city utility revenues of about $507,000.
- Increased franchise fees of about $104,000.
The projected total direct revenues to the city would thus be about $2,167,000, or about 1.7 times the amount requested from the city for inclusion in the building costs. The cash flow back to the city would equal the $1.3 million grant during the 7th year (See Table 1 after the appendices), assuming that the first two years of the period would be for construction and the first graduates of technical programs would occur in the third year.
Program Impact:
| Current Programs | ||||
|---|---|---|---|---|
| Current Campus | With Phase 1 | |||
| Average annual graduates | Collective Earnings | Projected annual graduates | Collective Earnings | |
| Air Conditioning & Refrigeration | 15 | $600,000 | 30 | $1,150,000 |
| Construction Technology | 10 | $400,000 | 34 | $1,350,000 |
| Critical Environments Technology | 3 | $160,000 | 10 | $450,000 |
| Electric Power & Distribution | 18 | $1,080,000 | 24 | $1,500,000 |
| Industrial Engineering Technology | 4 | $180,000 | 12 | $525,000 |
| New Programs | ||||
| Biomanufacturing | - - | - - - | 24 | $1,200,000 |
| Plumbing Technology | - - | - - - | 16 | $800,000 |
| Totals: | 50 | $2,420,00 | 150 | $6,975,000 |
Economic Impact Study
| City Revenues Generated | Years 1-5 | Years 6-10 | Year 10 |
|---|---|---|---|
| Sales tax from construction (labor & materials) | $520,789 | $0 | $520,789 |
| Sales tax from new staff jobs spending | $29,546 | $33,467 | $63,013 |
| Sales tax from new graduate spending | $259,600 | $712,524 | $972,124 |
| Total Sales Tax: | $809,935 | $745,991 | $1,555,926 |
| Utility Net Profits | $160,698 | $346,163 | $506,861 |
| Franchise Fees | $31,004 | $73,073 | $104,007 |
| Total City Revenues | $809,935 | $1,165,227 | $2,166,865 |
Impact of New Graduate Jobs
| Year 3 | Year 6 | Year 10 Totals | |
| New Graduates in the Area per year | 70 | 70 | 560 |
| New Annual Personal Income | $3,150,000 | $10,206,431 | $73,252,323 |
| Disposable income | $945,000 | $3,061,929 | $21,975,697 |
| New Retail Sales | $945,000 | $3,061,929 | $21,975,697 |
| 1st – 4th rollover totals | $1,937,989 | $6,279,347 | $45,067,348 |
| Total City Retail Sales | $2,882,988 | $9,341,276 | $67,043,004 |
| City Sales Tax Generated | $41,803 | $135,449 | $972,124 |
| County Sales Tax Generated | $28,890 | $93,413 | $670,430 |
