

This Case Study uses three examples to look at different aspects of a mixed-use development consisting of residential housing, retail stores, and industrial businesses. This type of analysis is challenging since we do not necessarily have all complete information. An industrial park and retail portions usually target some type of industry or retail store, but often we do not know what industries/stores will be included. When considering the residential component, it is important to keep in mind that only people moving into the new homes/condos from outside the study area should be represented in the impact. We usually have to make a lot of assumptions about the actual business that will ultimately occupy the park.
For a project like this, there are two phases, construction and operations, for all three developments. We will treat each as a separate exercise.
Objectives
- Analyze the impact of the residential construction component of the project.
- For any project, there are usually two phases: construction and operations. The construction information for this project is given in the table below.
- Real estate brokers get a 6% commission on these sales.
- Report all results in 2016 dollars.
Framing the Problem
Table 13a-1: Problem Frame for Impacts of a Residential Construction Component
|
Case Study Problem
|
Impacts of residential Construction on the economy of Washington County, MN
|
Sector
|
Industry 61, Construction of Other New Residential Structures
|
Development Residential
2016 Single Family 100 Homes, Construction cost: $150,000 per home
2017 Condominiums 50 Condos, Construction cost: $95,000 per condo
|
For 2016 the total impact value will be $15,000,000, and for 2017 the total impact value is $4,750,000.00
|
Analysis Protocol
|
Create an Activitiy (Industry Change activity type) with two Events for Industry 61. Use the Event Options menu to set the impact years. Enter Industry Sales of $15,000,000 in the 2016 event and sales of $4,750,000.00 into the 2017 event. Create a Scenario consisting of this single Activity and analyze using the Washington County MN single region model.
|
Resources Used
|
Washington county MN model built using 2014 data using the default Trade Flow estimation method
|
Desired Outcome
|
To summarize the impacts of the residential construction component of our project on the Washington County economy in terms of total Direct, Indirect, and Induced effects on Output, Gross Regional Product, Employment, and Labor Income. Describe the five most impacted sectors in terms of Employment and GRP.
|
Table 10a-2: User Preferences Settings |
Default Event Year: 2016
|
User Preferences, Analysis tab
|
Basic Analysis
|
User Preferences, Analysis tab
|
Tasks for Case Study Exercise 3a
|
Tasks
|
Hints & Comments
|
1. |
Create a new Washington County, MN 2014 model.
|
|
2. |
Create an Industry Change Activity called CS3a - Residential Construction
|
Click Set Up Activities from the left menu, then New to create a new Activity. Change the default name to CS3a Residential Construction - and leave the Activity Level at 1.00.
|
3. |
Select Industry 61 for both Events
|
Select New to create a new Event. Type 61, or use the drop-down menu to select 61 for both Events
|
4. |
Set Event Year for both Events
|
Remember that we have two time periods: 2016 and 2017.
Go to Event Options and select Show>Event Year. Click on the first Event to highlight it. Return to Event Options window and go to Edit Event Properties>Edit Event Year>2016. Highlight the second Event: Edit Event Properties>Edit Event Year>2017.
|
5. |
Enter the Industry Sales value |
Click into the Industry Sales field and enter the sales value. For the 2016 Event this value is $15,000,000 and for the 2017 Event the value is $4,750,000.00. |
6. |
Create a new Scenario called CS3a Res Construct consisting of the single ActivityCS3a - Residential Construction |
From the Set Up Activities window, click Next at the lower right or click Analyze Scenarios in the menu at the far left. Click New and change the default name to CS3a Res Construct . Leave the Scenario Level at 1.00. Add the CS3a - Residential Construction Activity to the Scenario by moving it from the Available Activities box to the Selected Activities box (double-click the Activity name or highlight the Activity and use the Select button). |
7. |
Calculate the impacts of Scenario CS3a Res Construct |
Be sure CS3a Res Construct is the current Scenario (in the Scenario Name: field in the menu bar at the top of the window). Click Analyze Single Region to calculate the impacts. |
8. |
Review the impact results for Scenario CS3a Res Construct |
Respond with Yes to the pop-up message "Analysis complete. Do you want to view the impact results?" or click Scenario Results in the menu at the far left. |
9. |
Summarize the total impacts of the Scenario |
The Total Impact Summary is a convenient view. See Solutions below. |
10. |
Summarize the impacts on the top 5 affected Industries |
The Top Ten Industries Affected is a convenient view. See Solutions below. |
Solutions
- Task 2-5. Activities and Events for Scenario CS3a Res Construct

- Task 9. Total Impacts of Scenario CS3a Res Construct

- Task 10. Top Ten Industries Affected of Scenario CS3a Res Construct

Comments
0 comments
Article is closed for comments.