How would filling our vacant retail spaces add to our sales tax revenue?

How would filling our vacant retail spaces add to our sales tax revenue?

October 9, 2024

We estimate that under best case circumstances in which all retail spaces were filled we would see $350,000 more per year in sales tax revenue, or 23% of the amount projected from Measure U.  This assumes that all available spaces are filled with retailers generating sales taxes at the same rate as our current retailers. This is unlikely given:

1. Typically vacant spaces are less desirable (one reason they are vacant) than filled spaces.
2. Some new tenants will ‘cannibalize’ sales tax from existing tenants.
3. Most new tenants probably are going to be services (this is where the economy is trending) and generate little to no sales tax.
4. About 3% of spaces will always be vacant due to turnover and improvements in the spaces.