Lewis Young Robertson and Burningham, Inc. (“LYRB”) was retained by Nordic Valley (the “Developer”) to complete a Cost Benefit Analysis related to the rezoning application for the Nordic Valley Development Master Plan (the “Development”), a multi-use resort development in and around the Nordic Valley Ski Resort. LYRB has prepared an analysis of the fiscal and economic benefits to be derived from the Development, as well as the corresponding costs
associated with the Development. The assumptions used in this analysis are based on data presented by the Developer, comparable community data, and current economic and market factors. This report is prepared in good faith as a best guess estimate of the costs and benefits of the Development. Prevailing economic and other conditions may influence
the actual costs and benefits either favorably or unfavorably. But for these unknown and unpredictable events, the information contained in this report is considered accurate accounting of the reasonable expectations of the Development.
The Development will create both a net fiscal benefit and an overall economic benefit. The County and
other taxing entities will receive fiscal benefits, including: 1) property tax, 2) sales tax, 3) tourism tax, 4) transportation sales tax, 5) Class B&C Road Funds, and 6) income tax. The proposed Development will produce $66.70 million in fiscal benefits to the County over the 25-year analysis period.
Additionally, the Development will produce $118.65 million in fiscal benefits to the other taxing entities over the 25-year analysis period. The economic benefits of the Development include: 1) job creation, 2) construction wages and supplies, and 3) local purchases by new County residents. The proposed Development will create a $471.74 million economic impact on the local economy during the 25-year analysis period. (For full report – See attached Cost Benefit Analysis from Lewis Young Robertson and Burningham, Inc. , Exhibit 1)
Based on the development assumptions utilized in this analysis, the Development produces a net benefit to Weber County with $52.30 million of cumulative net revenue projected over 25 years. The absorption and timing of the development with impact the current projections. The development may provide additional benefit to the County through additional development, business and guest purchases and other multiplier effects not analyzed in this study.
ECONOMIC IMPACTS
In addition to the $52.20 million fiscal benefit, the proposed Development will have a substantial economic benefit for the local community over the 25-year analysis period. It is projected that the Development could generate a $471.74 million economic impact in the following areas.
• New Job Wages
• Construction Wages and Materials
• New Residents Per Capita Spending
The actual economic impact of the Development is likely much higher, due to additional indirect and induced benefits. Positive economic impacts will likely be felt through associated business and economic activity, including employment multipliers.
NEW JOBS
It is anticipated that 125 new jobs will be created by the proposed Development. Future employee estimates were provided by the Developer. The jobs will produce $160.15 million in cumulative wages during the 25-year analysis period. The analysis assumes an annual salary increase of 2 percent. The salaries were then multiplied by the total annual jobs
CONSTRUCTION
In addition to permanent jobs and wages created by the Development, there will be a significant number of construction jobs and wages as the Development is constructed. It is anticipated that construction will begin in 2023 with a final build out date of 2032. This 10-year build out period will have approximately 1 million hours of construction labor that will generate $28.01 million in construction wages. (For full report – See attached Cost Benefit Analysis from Lewis Young Robertson and Burningham, Inc. , Exhibit 1)
