Laserfiche WebLink
Economic Impacts Brief: The Economic Development Return on Public Investment in Indian River County <br />........................................................................................................................................................................... <br />Public incentives provided by the County are also an important generator of Household <br />Income for the County's residents and taxpayers. In addition to the $28 million annually <br />of recurring Household Income directly generated by the operations of companies <br />that were granted incentives, $8 million of Household Income is created by indirect <br />economic activities (Table 1, page 6), and over $6 million of Household Income is <br />created by induced economic activities. In summary, these performance based and <br />targeted incentives generate over $42 million in Household Income each year for <br />County residents and taxpayers, with the largest proportion of income generated <br />from the Manufacturing and Knowledge -Based Services sectors as shown in Table 3 <br />below. <br />Table 3. Household Income Impacts on Indian River County Generated by Public <br />Incentives (2007 - Present) <br />47% <br />Manufacturing <br />Knowledge -Based Services` <br />$19,884 <br />$9,543 <br />23% <br />Government & Other _ _ _ <br />Wholesale Trade & Transportation Services <br />_ $7,577 <br />$3,482 <br />18% <br />_ <br />8% i <br />Retail Trade <br />Visitor Industry <br />_ $1,121 <br />$589 <br />3%_ 1 <br />_ <br />1% <br />Other Industries <br />$199 <br /><1%� <br />Note: Total may not equal the sum of all due to rounding. <br />Source: The Washington Economics Group,lnc. (WEG) <br />Value -Added impacts is another measure of economic benefits to the County and the <br />Chamber's economic development efforts arising from these incentives. Value Added <br />is the portion of business revenues that is available to pay compensation to workers, <br />capital income and indirect business taxes3. Value Added is also the principal source of <br />income to households and a key measure of the recurring contributions of these targeted <br />companies4 to the local economy. Each year the current operations of firms that received <br />these incentives create $55 million of Value Added directly, while $12 million is created by <br />indirect activities, and an additional $12 million is created by induced economic activities. <br />This totals $79 million in Value Added generated each year (see Table 1, page 6). <br />s Value Added also includes compensation to government workers. <br />° For the purpose of this Brief, "target(ed) companies' refers to the nine companies that receive performance-based incentives <br />from the County, not every company that was provided assistance by the Chamber <br />For the purpose of this Brief, "target(ed) companies" refers to the nine companies that receive performance-based <br />incentives from the County, not every company that was provided assistance by the EDD/Chamber. <br />............................................................................................................................................................................................................................... <br />The Washington Economics Group, Inc. (WEG) Page 17 <br />-7.14.9• <br />