In this Thursday, Oct. 25, 2012, photo, a sign attracts job-seekers during a job fair at the Marriott Hotel in Colonie, N.Y. According to government reports released Friday, Nov. 2, 2012, the U.S. economy added 171,000 jobs in October, and the unemployment rate ticked up to 7.9 percent. (AP Photo/Mike Groll)
Villages at Vigneto to create $23.8B in economic impact
Dr. Robert Carreira, principal of USEconomicResearch.com, forecasts the Villages at Vigneto will ignite the struggling Benson and Cochise County economies. The development, including 28,000 homes, a destination resort, and four million square feet of commercial/retail space, will bring an estimated $23.8 billion* in economic activity (spending/sales) over 18 years. Additionally, It will create an estimated 16,350 jobs at the height of construction and $79.6 million in cash surplus to the City of Benson.
Dr. Carreira’s economic study of the Villages at Vigneto utilized the Regional Input-Output Modeling System (RIMS II) developed by the U.S. Bureau of Economic Analysis (www.bea.gov). The study estimates the Villages at Vigneto, developed by Phoenix-based El Dorado Benson LLC, will produce $7.7 billion in associated household earnings.
According to Dr. Carreira’s study, the Villages at Vigneto will transform the economies of Benson and Cochise County, spurring unprecedented economic activity, job growth, business expansion, population growth and reduce the unemployment rate, which has burdened the entire region. Over the past six years, Cochise County has lost more than 4,000 jobs. The current unemployment rate in Cochise County is 8.4 percent, while Benson’s has increased to over 10 percent.
The Study assumes 2,000 home sales annually by 2020, and shows the economic impact will reach an annual reoccurring revenue of $1.2 billion, generating $426 million in household earnings. This growth will peak in 2031, resulting in $2.2 billion in economic activity, $674 million in household earnings, and 16,355 jobs to Cochise County. Upon completion of the development of Vigneto, the region will sustain $1.2 billion in economic activity annually, and over 8,780 permanent full time jobs.
During build out, the Villages at Vigneto will generate $1.5 billion in new tax revenues for all Cochise county taxing districts. The fiscal impact on the City of Benson over the same period will create $557.6 million in tax revenue compared to $478.1 million in expenses. The net impact to the City of Benson will be $79.6 million in tax surplus.
Mike Reinbold, development partner with El Dorado Benson, LLC, said, “The increase in jobs, sales, business expansion and tourism that this project will bring will directly benefit Benson and Cochise County residents. Immediately there will be construction jobs created that would last for a number of years. The sudden increase in jobs will instantly increase boost sales in the retail, transportation, lodging, and the food and beverage industries. Public safety, social services, hospitals, medical facilities and schools will also see increases in revenues as a result of this project.”