Return On Investment Analysis

Total Net Present Value by Jurisdiction for Vancouver Redevelopment Investments

Virtually no cities have engaged in truly objective, professional analysis of the economic costs and benefits of their downtown redevelopment programs and investments. Proponents of redevelopment laud leveraging ratios of public vs private investments, the creation of jobs and a sense of renewed vibrancy. Detractors rail against inequitable distribution of public resources, lining the pockets of wealthy developers and squandering scarce resources on dilapidated and hopeless urban neighborhoods. However, in 2005 Steve proposed that such an analysis be undertaken so that the costs and benefits of Vancouver’s redevelopment efforts could be objectively quantified and presented to political leaders, the business community and the City’s citizens.

The results of the analysis quantified and demonstrated:

• Modest returns of revenue on the City’s redevelopment investments approximately equal to the return earned on its invested reserves portfolio.
• Exceptional tax revenues flowing to the State and to local school districts that was previously unrecognized.
• The creation of almost 1,500 permanent jobs.
• The addition of substantial buying power to support downtown retail.

Steve’s role in this effort was to:

• Commission the analysis and retain the economic consultant.
• Establish a blue ribbon, objective and non-vested oversight group.
• Manage the consultant contract.
• Present the results to the media, citizen groups, boards, City Council and a State legislative committee.

The analysis can be found with the link:
http://www.cityofvancouver.us/upload/images/EconDev/DowntownROI_finalreport.pdf