Economic Benefits

Two leading economic consultants, Frank, Rimerman + Co. LLP and Keyser-Marston Associates, each independently reviewed The Reserve at Laetitia and analyzed its economic benefits. Frank, Rimerman + Co. LLP, is the premiere expert in assessing the value of vineyard and winery operations. The firm was retained by the SLO County Economic Vitality Corporation in 2007 to review the Central Coast wine economy, with the resulting report presented to the SLO County Board of Supervisors and becoming the benchmark for the local wine industry. The Reserve at Laetitia team requested the firm apply the same methodology and study Laetitia as a stand-alone interest. The resulting report, released in March 2014 and updated in January 2015, finds the proposed project will add $102 million in local economic benefits each year. The Reserve will generate taxes for local schools, will contribute to retail sales tax and will boost tax coffers.

Highlights of the Frank, Rimerman + Co. analysis follow. Note dollar estimates are for ongoing annual economic impacts.

  • Permanent full-time equivalent jobs 521 (jobs located throughout SLO County)
  • Wages $20.4 million
  • New business income $17.8 million
  • Related tourism expenditures $12.2 million
  • Local property taxes $2.3 million
  • Other state & local taxes $6.6 million
  • Indirect/induced benefits $10.5 million

Keyser-Marston Associates is recognized nationwide for its work analyzing the public revenues projected to accrue to government entities as a result of private sector projects (i.e., sales tax, property tax). The firm has provided analysis to special districts, cities, counties, states and other government bodies throughout the United States, including dozens in California. The Keyser-Marston Associates’ report projects an average of $2.3 million in new property taxes during the phased construction of the project. At build out The Reserve at Laetitia is projected to generate $4.7 million in annual property tax.

The Reserve at Laetitia is not located within the city limits of Arroyo Grande, but because the city is nearby, Reserve residents will frequent Arroyo Grande’s retail, restaurant and professional services outlets and produce direct economic benefits to the city. Keyser-Marston Associates conducted additional analysis focused on Arroyo Grande and found that at build out The Reserve will generate $13+ million in taxable and nontaxable sales and $94,000 in sales tax revenues annually for Arroyo Grande. In addition, Arroyo Grande residents with children attending Lucia Mar School District schools will also benefit from The Reserve’s property tax support, anticipated at build out to be over $2 million annually.

Full reports on the economic benefits of The Reserve at Laetitia are below:
Laetitia Economic Impact Frank, Rimerman + Co. LLP – January 2015

Laetitia Agricultural Cluster (without dude ranch) – Countywide Economic & Public Revenue Analysis – Bullet Points Keyser Marston Associates – April 2014

Laetitia Agricultural Cluster – Countywide Economic & Public Revenue Analysis – Bullet Points
Keyser Marston Associates – April 2014

Laetitia Agricultural Cluster (without dude ranch) – Arroyo Grande Economic & Public Revenue Analysis – Bullet Points Keyser Marston Associates – April 2014

Laetitia Agricultural Cluster – Countywide Economic & Public Revenue Analysis
Keyser Marston Associates – April 2014

Laetitia Agricultural Cluster – Arroyo Grande Economic & Public Revenue Analysis – Bullet Points
Keyser Marston Associates – April 2014

Laetitia Agricultural Cluster – Arroyo Grande Economic & Public Revenue Analysis
Keyser Marston Associates – April 2014