Memo - DOC

							MEMO
Date:         January 3, 2008
                                                   Telephone:                  Fax:
To:           James Rostocki                302.250.5541                       302.397.2127
              Richard DeVincentis
              Porter Mill Road Properties, LLC

Cc:           Daniel R. Losco                      302.656.7776                302.656.7774
              Losco & Marconi, P.A.

From:         Dean D. Bellas, Ph.D.                703.780.8200                703.780.8201
Job:          P-070124a-PMRP
Pages:        4 (including this page)
Re:           Fiscal Impact Analysis: Waller Landing on the Eastern Shore project
              Town of Hebron, Maryland

Dear Messrs. Rostocki, DeVincentis and Losco:

At the Town of Hebron Planning Commission public hearing held on December 13,
2007, the commissioners requested clarification on how the findings reported in
Table 1-1 of the report entitled, “A Fiscal and Capital Asset Impact Analysis of the
Proposed Waller Landing on the Eastern Shore Project on the Town of Hebron,
Maryland” dated September, 2007, were calculated.

Attached please find the supporting calculations.

If you or any member of the Planning Commission should have any questions
regarding this memo, please, do not hesitate to call.

Sincerely,




Dean D. Bellas, Ph.D.




                                    Urban Analytics, Inc.
                 Mailing Address: Post Office Box 877 Alexandria, Virginia 22313-0877
                Office Address: 4010 Maury Place - Suite 7B, Alexandria, Virginia 22309
                (Office) 703.780.8200  (Toll-Free) 800.510.0533  (Fax) 703.780.8201
                                       www.UrbanAnalytics.com
James Rostocki
Richard DeVincentis
January 3, 2008
Page 2 of 4

     Clarification Requested by the Town of Hebron Planning Commission


Please show how the findings reported in Table 1-1 on page 5 of the report relate to
the fiscal impact multipliers for the “Composite” Town of Hebron, Maryland presented
in Appendix Table B-3 on page 45 of the report.



                                       Appendix Table B-3
                              Net Fiscal Surplus (Deficit)
                         "Composite" Town of Hebron, Maryland
                                  FYE June 30, 2006


                                                                       Per Capita         Per Job

    Total Operating Revenues                                          $    453.46     $    340.43

    Total Operating Expenditures                                      $    417.66     $    317.53

    Net Operating Surplus (Deficit)                                   $     35.80     $      22.90

Note:
 1 This "composite" Town of Hebron reflects a cross-section of existing jurisdictions analyzed.

Source:
Town of Hebron Financial Report for the FYE June 30, 2006
Pocomoke City Financial Statements for the FYE June 30, 2006
Town of Walkersville Financial Report for the FYE June 30, 2006
City of Taneytown Financial Statements Together with Independent Public Accountants' Report
    for the FYE June 30, 2006
Town of Thurmont Audited Financial Statements for the FYE June 30, 2006
Urban Analytics, Inc.




The multipliers presented in Appendix Table B-3 are reported in the aggregate for
ease of presentation. The sub-component multipliers for Total Operating Revenues
employed in the fiscal impact model are as follows:
           Revenue Multipliers        Residential Non-Residential
           Real Estate                  $167.68          $85.28
           Non-Real Estate              $285.78         $255.15
           Total                        $453.46         $340.43
James Rostocki
Richard DeVincentis
January 3, 2008
Page 3 of 4

The total estimated population of the residential land uses at the proposed Waller
Landing on the Eastern Shore project at full build-out and occupancy is 3,663. The
total estimated full-time equivalent (FTE) jobs supported for the non-residential land
uses at the proposed project at full build-out and occupancy is 1,335 (Table 2-1 on
page 10 of the report).

                       Non-Real Estate Revenue Calculations

Step 1: The residential non-real estate revenue multiplier ($285.78) times the
estimated total population at full build-out and occupancy (3,663) equals $1,046,812.

Step 2: The non-residential non-real estate revenue multiplier ($255.15) times the
estimated total FTE employment (1,335) equals $340,625.

                         Real Estate Revenue Calculations*

Step 3: The total residential real estate market value at full build-out and occupancy
is estimated to be $376,599,000 (Table 2-1 on page 10). Based on the Town of
Hebron FY2006 tax rate of $0.40 per $100 of assessed value, the total estimated real
estate tax equals $1,506,396 ($376,599,000 divided by $100 of assessed value
times $0.40 per $100 of assessed value).

Step 4: The total non-residential real estate market value at full build-out and
occupancy is estimated to be $158,572,000 (Table 2-1 on page 10). Based on the
Town of Hebron FY2006 tax rate of $0.40 per $100 of assessed value, the total
estimated real estate tax equals $634,288 ($158,572,000 divided by $100 of
assessed value times $0.40 per $100 of assessed value).

*Please note: The residential real estate revenue multiplier ($167.68) and the non-
residential real estate revenue multiplier ($85.28) were computed for the “composite”
Town of Hebron. The underlying assumptions used to construct the “composite”
Town of Hebron were based on a comparative analysis of the two towns and two
cities selected. If the estimated real estate market values of the proposed Waller
Landing on the Eastern Shore project were equivalent to the estimated average real
estate market values in the two towns and two cities selected, then the real estate
revenue multipliers for the “composite” Town of Hebron would be used to estimate
real estate tax revenues.

However, in Table 2-1 on page 10 of the report, the average real estate market
values for the proposed residential and non-residential land uses reflect the mix and
type of land uses proposed to be built. That is, the residential unit types, unit mix,
and unit sizes combined with the non-residential land-uses, square foot mix, and
square foot size reflect the building program proposed to be built in the Town of
Hebron.
James Rostocki
Richard DeVincentis
January 3, 2008
Page 4 of 4

                                           Expenditure Calculations

Step 5: The total residential (per capita) operating expenditure multiplier ($417.66)
times the estimated total population at full build-out and occupancy (3,663) equals
$1,529,889.

Step 6: The total non-residential (per job) operating expenditure multiplier ($317.53)
times the estimated total FTE employment at full build-out and occupancy (1,335)
equals $423,903.

The findings shown in Steps 1 through 6 above correspond to the findings presented
in Table 1-1 on page 5 (shown below).
                                                       Table 1-1
                                              Net Fiscal Impact
                            Proposed Waller Landing on the Eastern Shore Project
                                  "Composite" Town of Hebron, Maryland
                                            (FYE June 30, 2006)
              Land Use Type                         Residential    Non-Residential               Total

             Town of Hebron
                          1
     Real Estate Revenues                       $     1,506,396    $       634,288            $ 2,140,684
     Non-Real Estate Revenues                   $     1,046,812    $       340,625            $ 1,387,437
     Total Revenues                             $     2,553,208    $       974,913            $ 3,528,121

     Total Expenditures                         $     1,529,889    $       423,903            $ 1,953,791

                                     1,2
     Net Revenue Surplus (Deficit)              $     1,023,320    $       551,011            $ 1,574,330

            Wicomico County
                          3
     Real Estate Revenues                       $     3,739,628    $     1,574,620            $ 5,314,248
                          4
     Real Estate Revenues                       $     3,547,563    $     1,493,748            $ 5,041,311

     Source: Urban Analytics, Inc.
     Note:
 1   Based on Town of Hebron FY2006 tax rate of $0.40 per $100 of assessed value.
 2   Analysis based on full build-out and occupancy.
 3   Based on Wicomico County FY2006 tax rate of $0.993 per $100 of assessed value.
 4   If Wicomico County FY2007 tax rate of $0.942 per $100 of assessed value was in effect.