If and when Menlo Park is fully built out under proposed zoning changes, the amount of revenue the city will receive is somewhat less than originally estimated, according to the final fiscal-impact analysis on the city's general plan update.
The analysis is one piece of the puzzle the Menlo Park City Council will consider Tuesday, Nov. 15, when it reviews proposed changes to the general plan, which governs future development in the city.
The final fiscal analysis, conducted by the consulting firm BAE Urban Economics, shows that a full buildout of the city under proposed general plan changes would result in the city receiving an additional $8.3 million a year in revenues from sales taxes, hotel taxes, property taxes utility users taxes and other sources. An earlier estimate in the draft fiscal analysis was $9 million.
The amounts are estimates of city revenue based on a full buildout under existing zoning plus the proposed rezoning of the M-2 area east of U.S. 101. The rezoning would allow the addition of 4,500 housing units, 2.3 million square feet of commercial development and 400 hotel rooms in the M-2 area.
The analysis also studied the fiscal impacts of two alternatives to full buildout:
• Cutting by half the amount of new nonresidential and hotel space that could be built, which would add an estimated $5.2 million a year to city coffers.
• Reducing all development allowed by 25 percent, which would add an estimated $6.8 million a year to city revenues.
The draft version of the fiscal impact analysis was released in September.