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Development building due to the fact that peak traffic flow for the proposed housing is
OPPOSITE the predominant flow of traffic into/out of Gateway Hills. In addition, there will be
130 LESS trips leaving the site in the afternoon. In layman’s terms. there will be NO traffic
impact as a result of this zoning change and future project. All of that said, should the Planning
Board, during the site plan process, request that the John Flatley Company either improve Spit
Brook Road or contribute to the City’s aforementioned D.W. Highway/Spit Brook Road traffic
study fund. Improvements, if required by the Planning Board, would include a combination of
widening the roadway from Tara Blvd. to a location to the west that will allow traffic heading
east to continue in that direction in two lanes while adding a left-turn lane for traffic turning into
Gateway Hills. In addition, a slip lane will be added on the westbound side Spit Brook Road to
allow traffic to turn into Tara Commons, while allowing through traffic to the west to continue
unimpeded by traffic turning into Tara Commons. This layout has been reviewed by the City’s
Traffic Engineer and our traffic consultant, VHB. is prepared to begin design process. Again,
this is not a requirement and is not necessary in any way for the proposed future residential
development, but to keep Spit Brook Road traffic moving effectively as non-residential
developments are permitted and built not only at Gateway Hills, but other properties to the east
and west, we believe it would be a great benefit to the City to either contribute to the City’s
overall traffic study for this area or do this work as a condition of the zoning change, should the
Planning Board require the improvements instead of the contribution to the City’s traffic study.

Section 5 — Closing/Summary

The John Flatley Company has filed paperwork with the Nashua Board of Alderman to
have approximately 31.55 acres of land re-zoned to RC from Park Industrial (PI). A
portion of this area is within the already developed Tara Heights Apartments. This
zoning change will leave over 248 acres of PI land available within Gateway Hills for PI-

zoned uses.

There is currently a 73,400 sf Self-storage facility and 39,300 of flex,;warehouse space
and restaurant/brewery under construction at Gateway Hills, in accordance with the P]
District, showing our commitment to various uses within the site.

As shown in Appendix B, the traffic flows for the site will not adversely impact the daily
traffic on Spit Brook Road as the predominant flow of traffic will be OUT of the site in
the morning and IN to the site in the afternoon, which is opposite the predominant flow

of traffic for non-residential uses.

There will be an overwhelming net positive yearly fiscal impact to the City of Nashua
with the approval of this zoning change request ($800,000+). in addition to one-time fees.
as well as either improvements to Spit Brook Road (cost exceeding $500,000) or a
donation to the City’s traffic study of D.W. Highway and Spit Brook Road.

Appendix A

Fiscal Impact Analysis by Fougere Planning & Development

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Prepared By
Fougere Planning & Development, Inc.

FOUGERE PLANNING & DEVELOPMENT, Inc.

Mark J. Fougere, AICP

253 Jennison Road Milford, New Hampshire 03055
Ph : 603-315-1288 email: Fougereplanning@comcast.net

FISCAL IMPACT ANALYSIS

The Charlotte
Nashua, NH

January 15, 2021

Introduction

Fougere Planning and Development has been engaged by the John J. Flatley
Company to undertake this Fiscal Impact Analysis to outline the potential
financial benefits to the City of Nashua from the proposal to construct a 294 unit
apartment complex that will include both a garden style building and townhomes
adjacent to the existing Tara Heights development (564 units). The project will
consist of one, five story building containing 266 units with parking located
underneath, along with a clubhouse & pool. In addition there will be 28
townhome two bedroom apartment units. Table One breakdown the bedroom
unit types. Additional onsite parking will also be provided. Based upon an
existing population in Tara Heights of 1.53 persons per unit, an estimated 450
people may reside within the new development. This project is expected to be
constructed over a period of two years. The project site consists of.
approximately 18.85 acres containing rolling hills and woodlands.

Table One
Apartment Unit Breakdown
Unit Type Number Units

Studios 57
One Bedroom 114
Two Bedroom 123

All on site drives and trash pickup will be privately maintained; public water and
sewer will service the property with user fees covering all costs. To gain a full
understanding of the fiscal ramifications to the community, this report will provide

a fiscal analysis of the proposed project.

Local Trends

Census figures report that from 2000 to 2010 Nashua’s population decreased
from 86,605 to 86,494, reporting a small decrease in population over the 10 year
period. The most recent Census! data reports Nashua’s population to be 88,872.

Approximately 45% of Nashua’s housing stock consists of single family homes,
with the most recent Census data reporting 17,608 single family homes out of a

total housing stock of 39,035 units; Figure One.

Figure One
Housing Breakdown

1-Unit
Attached
9%

Duplex
6%

TNH OSE 2019,

Budgets

The City's most recent budget totals $270,319,074. The Education Department,
along with Police and Fire, are some of the largest Departments in the City.
Given the nature of the proposal, these Departments will be the most directly
affected by the proposed project and as such, will be closely reviewed in this

analysis. Figure Two outlined the percentage breakdown of the budget.

Figure Two
Budget Percentages

Transfers General
2% Government

Public Worss

Fa)
Planfi bys Histuric/t O

Police
12k

Education
59°

A. Fiscal Methodology Approach

Fiscal Impact Analysis can have many connotations, this analysis will follow the
classic definition of fiscal impact as follows “A projection of the direct, current public
costs and revenues associated with residential or nonresidential growth to the local

jurisdiction in which the growth is taking place.”

There are a number of methodologies that are used to estimate fiscal impacts of
proposed development projects. The Per Capita Multiplier Method is the most
often used analysis to determine municipal cost allocation. This method is the

classic “average” costing method for projecting the impact of population growth

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on local spending patterns and is used to establish the costs of existing services
for a new development. The basic premise of this method is that current
revenue/cost ratios per person and per unit is a potential indicator of future
revenue/cost impacts occasioned by growth. New capital expenditures required
for provision of services to a development are not added to current costs;
instead, the present debt service for previous improvements is included to
represent ongoing capital projects. The advantage of this approach is its
simplicity of implementation and its wide acceptance by both consultants and
local officials. The downside of this approach is that the methodology calculates
the “average” cost as being the expected cost, which is often not the case and
costs can be understated or exaggerated; significantly in some instances. If one
student is added to a school system, limited cost impacts will occur; however,
based on an “average” cost to educate one student the cost would be noted as
$18,000/year which includes such costs as existing debt, building maintenance,
administrative and other factors, all of which will be minimally impacted by the
addition of one student. The “true cost" could be significantly less, especially in

those communities with declining enrollment.

The Marginal Cost Approach is a more realistic methodology that can be used to
estimate and measure developmental impacts based on actual costs that occur
in the community. At this time, a “level of service” exists in Nashua to serve the

community. This existing service level, for the most part, addresses the needs
of the community through existing tax collections. As new development occurs,
pressures are placed on some departments to address increased demands,
while other departments see negligible, if any impacts. In reviewing the
potentially impacted town departments specifically, a truer picture of anticipated
cost impacts can be determined. The Report will use this methodology unless
discussions with Department heads lead to no definitive cost conclusion, in which

case the Average Costing Method will be applied.

Given the nature of the proposed development project, as will be shown by the
analysis below, few significant impacts will be felt by City departments. Any
required off-site road improvements will be addressed during the approval

4

process. Solid waste generated by this project will be removed by a private
hauler. Any construction related or operating utility expenses will be offset
through user fees. All on-site improvements will be private and all maintenance
expenses will be paid for by this project owner. This report does not intend to
infer that few costs will be incurred as a result of this project. Measurable
impacts will certainly be felt by a few City Departments, most notably the School
Department along with the Police and Fire Departments. Other City agencies will

see little or no measurable impacts.

B. Local Revenues From Development

A) Property Taxes

Local property taxes provide the bulk of municipal revenues for New Hampshire
communities. The 2020 Tax Rate for Nashua is $22.61; Figure Three outlines
the breakdown of the tax rate. For purposes of this Report, a tax rate of $21.45

will be used which excludes the County Tax Rate.

Fisure Three
Tax Rate

Schoo}
46%

Table Three outlines the anticipated municipal tax revenue that will be generated
by the proposed project. The estimated assessed value is derived from a per
unit average of the existing 564 unit Tara Heights project. Based upon the most

recent property assessment for Tara Heights, a per unit value of $128,848 was