Central Oregon LandWatch is pleased to announce the completion of our in-depth analysis of the costs and benefits of destination resorts in Oregon. This report, entitled, "Fiscal and Economic Impacts of Destination Resorts in Oregon," which was performed by the consulting firm Fodor & Associates out of Eugene, OR represents the best effort to date to assess the impacts of destination resorts in Oregon.

Although the report's primary focus is on fiscal impacts of destination resorts affecting local governments and taxpayers, it also addresses economic impacts related to jobs creation and affordable housing. The most fundamental question that this report seeks to answer is, "How will the approval of a destination resort affect local taxpayers and the general public?"

The answer it turns out, is that the standard model for a golf-course subdivision-oriented destination resort presents local governments and taxpayers with a substantial net burden that will result either in higher overall taxes or a decrease in the quality of basic services.

The report addresses six basic categories of public infrastructure required by resort development:

• Transportation Systems
• School Facilities
• Fire and EMS Facilities
• Police Facilities
• Parks and Rec Facilities
• General Government facilities

According to our analysis, after subtracting the costs for these services from the gross property and room tax revenue generated by our case study resort - the proposed Thornburgh Resort near Redmond - only a modest net surplus remains. However, when the cost of capital facilities including roads, schools, fire and police stations, and others is also accounted for, the net cost to local taxpayers is substantial at $51.28 million. This is even after accounting for all known payments the resort would be required to make.

To illustrate the overall impacts to taxpayers, if the amount of annual revenue that is projected to be left over ($466,344) could be used to service interest and principal payments on a 20-year loan at 6% interest of only $5.35 million, which would account for only 10.4% of the net cost, and reduce it to $45.94 million.

This report is certainly not expected to be the final word on this matter, but it does represent the most thorough assessment to date. The only readily available sources of information prior to the release of this report have been studies prepared as part of the land use application materials provided by destination resort developers. For the most part, these studies have focused on the tax revenues and broadly ignored a wide range of expenditures that are required to serve the needs of resort developments.

The impact studies that have provided by developers have portrayed an unrealistically optimistic and beneficial picture of the development project. Unfortunately, it's this view of resorts that has been allowed to set resort policy in Oregon and throughout the West. That needs to change.

Our report also addresses the negative impacts of destination resorts on jobs and affordable housing as well as the substantial financial risks that these resorts present to the entire community. We hope that you enjoy this landmark effort. The report, and a brief executive summary, are attached below.

The Oregon Legislature is currently reviewing a number of bills related to statewide destination resort policy, and you can be assured that LandWatch will do what it can to ensure that the state's flawed policies on destination resorts receive the deliberate fixes they deserve.

For more information, or to get involved, please write us at info at centraloregonlandwatch.org.

-Central Oregon LandWatch