An Economic Impact Analysis report prepared by Rubin, Brown, Gornstein & Co. LLP (RBG & Co.) recently reported the economic impact of The New Town at St. Charles, a traditional neighborhood development by Whittaker Homes, on the region.
According to the report, the $771 million of construction costs at The New Town at St. Charles will generate $1.3 billion in total output, $416 million in labor income and $43 million in indirect business taxes to the region over a 12-year construction period.
To illustrate the magnitude of the construction costs of New Town, RBG & Co. has compared New Town’s direct construction expenditures to construction costs to other projects in the region. For example, New Town’s direct construction costs are roughly the equivalent of constructing two St. Charles Convention Centers each year for a period of 12 years, generating a tremendous amount of income for the region every year.
Plans for New Town include a commercial component that is expected to impact the region long after construction ends. RBG & Co. found that the estimated economic impact to the region for ongoing operations is significant, with $4.9 billion estimated in total output over a 20-year period.
RBG & Co. also found that the City of St. Charles stands to receive approximately $5.1 million in fees paid by developers and builders related to the construction costs of New Town. Additionally, the city could estimate the receipt of direct public sector payments, from operations of approximately $4.7 million per year.
RBG & Co.’s report directly states, “Our economic analysis has indicated that the City of St. Charles, St. Charles County and the surrounding four counties will be significantly impacted by the constructions and operations of New Town. To put this in perspective, the sum of economic impacts from hosting two Rams playoff games, the 2002 Soulard Mardi Gras Parade, the first and second rounds of the 2002 NCAA Tournament, five Cardinals playoff games and 15 conventions at the St. Charles Convention Center is approximately $67 million. The New Town at St. Charles and the Annex has almost five times the annual impact of the aforementioned events combined.”
Ultimately, The New Town at St. Charles, a $1 billion project will consist of over 5,000 residences in ten phases, with a carefully planned mix of homes in addition to a large town center and four neighborhood centers and over 500,000 square feet of office and commercial space.
The New Town at St. Charles is located off Hwy. 370 and New Town Blvd.
For information regarding The New Town at St. Charles, call 636-949-2700 or visit www.newtownatstcharles.com.
