GOSHEN – A consultant’s study of the potential economic impact
of Legoland on Goshen and Orange County conducted for the Orange County
Industrial Development Agency has been completed. (Full
report)
Among the findings of the KPMG report is that the 30-year PILOT agreement
Legoland’s parent company proposes would generate approximately
$61 million in PILOT and property tax payments over the duration, while
an IDA-modeled 20-year PILOT would generate approximately $87 million
in PILOT and property tax payments over a 30-year period.
The study also found that operating assumptions provided by Merlin appear
“reasonable” when compared to Legoland Florida and California
properties and that sales tax revenues in Orange County are “significant
and depend on park attendance, average visitor spending, and hotel occupancy.”
According to Legoland’s 30-year proposal, state and local revenue
impact would see $50 million in PILOTs, sales tax on ticket sales would
amount to some $40 million, sales tax on hotels would total some $30 million
while county hotel tax would be about $20 million, and the host agreement
would generate about $20 million. The largest revenue stream would come
from sales tax on food and merchandise, at about $500 million.
The impact on county, school, town and fire district over 30 years would
include $50 million in PILOT payment, about $30 million in sales tax on
tickets, $225 million in sales tax on food and merchandise, about $20
million in hotel sales tax, about $30 million in county hotel tax, and
about $40 million in host agreement.
Over a 30-year period with no PILOT agreement, Legoland would pay an estimated
$125 million in property taxes.
Under a 30-year Merlin PILOT, the company would pay about $55 million
in PILOTs, $5 million in property tax and save $65 million.
In a 20-year PILOT proposed by the IDA, Merlin would pay roughly $50 million
in PILOT payments, some $42 million in property taxes and save $37 million.
Merlin is also seeking construction sales and mortgage recording tax exemptions.
The company is expected to employ 500 full-time, 300 part-time and 500
seasonal workers with projecting an annual payroll and benefits of some
$46 million. Merlin has also stated that only 10 of the estimated 1,300
positions to be filled would not be from the local area.
