Harvey Hanna & Associates sought to quantify and articulate the economic and fiscal impacts of their proposed 305,000 square foot distribution and logistics facility at 750 Governor Lea Road in New Castle County, Delaware. The project aimed to redevelop a certified brownfield site by combining two parcels with historical industrial uses and transform them into a modern logistics hub. Harvey Hanna & Associates needed comprehensive economic analysis to enhance public discussion about the proposal by highlighting important economic fiscal considerations for evaluating the development.
ESI utilized input-output modeling to quantify the direct economic footprint and spillover activity related to both the construction phase and future ongoing operations of the facility. The analysis incorporated detailed modeling of construction costs, projected employment figures, and operational expenditures to estimate total economic output, jobs supported, and employee compensation earnings. Tax revenue impacts were projected by considering various sources of additional tax revenue that would be generated for state and local jurisdictions during construction and beyond.
Our approach included assessing impacts to both New Castle County and the state of Delaware, with particular attention to impacts on the Colonial School District and evaluating how the redevelopment would support the county and state’s broader economic development plans and growing logistics sector.
Key Findings
- Construction: One-time expenditures of $36.6 million would support 380 temporary jobs (72% in construction) and generate $1.7 million in state personal income and business tax revenues
- Facility Economic Footprint: At full occupancy, the facility would produce $27.0 million annual economic impact and support 180 permanent jobs across logistics, distribution, and supporting industries
- Facility Tax Revenue: The facility would generate $761,000 annually in state taxes plus $289,000 in new property taxes for the Colonial School District and New Castle County