Updated Response, p 10

Economic Impact
The proposed Chelsea Connection development will have significant, positive, short and long-term impact on the Chelsea area, as described in the Initial Response. While most of the discussion there remains relevant, by transferring ownership immediately to The Chelsea Connection LLC, the financial picture for the DDA/ City changes, but still remains very strong.
 Economic Impact on City of Chelsea and its Residents:
• The DDA will receive full purchase price at closing, offsetting much of the investment the DDA has made in the site.
• Sale will eliminate need for the DDA to invest additional money in the redevelopment of the site, and eliminate utility and insurance associated with the property.
• Property tax income: TCC, LLC’s ultimate goal for The Chelsea Connection development is to return it to the tax roles, at an appropriate value.
• By transferring ownership of the property to The Chelsea Connection LLC, the DDA/ City will reduce/ eliminate the liability of owning a vacant, unprotected property.
 Economic Impact on Chelsea Area Workforce and Prospective Business Occupants:
• Job Stability and Growth
o Over the next 3-5 years, the Chelsea Connection will offer short-term construction work to many area workers. With area construction activity in recession, these opportunities will make a big difference to workers in this struggling industry. The TCC will maximize the use of local labor and skilled trades.
o Unlike new construction in which much of the cost is for materials produced elsewhere, the labor-intensive nature of rehabilitation of historic buildings results in relatively more of the money expended for local labor, keeping salary dollars in the community longer. Dollars spent on imported materials circulate through a community only once, but dollars spent on local labor circulate through a community six times.
o The TCC projects that The Chelsea Connection will be host to the equivalent of approximately 20 long-term, full-time (40 hour/week) jobs, measured based on work performed on-site.
• Small business/ talent incubator. The New Craftsmen Workshop and portions of the Mack building offer potential to “soft-start” new businesses by offering low-cost terms that allow tenants to ramp up their costs as business grows. With the support of these low-cost start-up opportunities, tenants in these areas can focus on growing their business. Potentially these growing businesses may outgrow these spaces and move into higher value properties in the area that are currently underutilized (empty portions of Clocktower complex, former Bookcrafters, former Federal Screw Works, former UAW hall, former Post Office etc.). Mack second floor performance space offers budding area talent new opportunities to perform.