Fees paid to the Government

Hi Ali, The following sectors would be our best suggestions: • lien payments: 356 • Bonding Company legal Fees: 357 • permit fee to the city: You will only want to analyze these if they will be significant enough to affect the city’s annual spending. If they are, you would run these through the State &Local Non-Ed spending pattern. • Water Rights and Use payments: This will depend on who these are being purchased from (private, state, federal). Again, this is not likely to have much impact, and if the seller is the federal government, we don’t recommend impacting the federal spending pattern for purchases like these. • Mitigation Fee (Environmental Impact fees) : This will depend on who is receiving these fees, typically its State & Local governments non-ed and the same principles apply as for the permit fee. • Soft Construction : This likely encompasses a variety of IMPLAN sectors depending on what ‘soft’ construction items were purchased. If these are items like architechtural fees and legal services, the only affective way to model them would be to try to get more detail so that you know where to put the costs. If on the other hand they represent material purchases and you can’t get a more detailed breakdown or indication as to what these purchases represent, we would recommend running them through 319, keeping the default choice of Gross Retail Sales and with LPP set to SAM Model value. In regards to your second question, none of the input purchases (whether materials, fees, or soft costs) will generate direct jobs, as they are by definition the first round of indirect effects. The only direct jobs are the construction company workers involved on the project.

So if soft construction cost includes, say architectural fees and I use sector 369, and input the dollar amount, wouldn't it also calculate the direct jobs associated with this sector? How do I go around it so the dollar amount only shows the indirect and induced jobs? For material purchases, how do I set the LPP to SAM model? Thanks.

Ali, The model will show direct jobs when inputting a dollar amount to an Industry Change Event for Sector 369. This can be interpreted as jobs supported by the golf construction especially if you are sure that the architectural firm did not hire anyone for this project. They are by definition still indirect because they are resulting from the construction, which is the direct effect for your project. For material purchases, you may set the LPP to SAM model value by selecting the sector, clicking Event Options>Edit Event Properties>Local Purchasing Percentage>set to SAM Model Value. Let us know if you have any further questions. Thanks