Potential Regional Economic and Tax Impacts of Liberty Bell Motorsports Park and Campground
12 Pages Posted: 25 May 2011
Date Written: May 22, 2011
Liberty Bell Motorsports Park and Campground will be constructed on 653 scenic acres just off Route 422 near Douglassville, Pennsylvania, in Berks County. The facility will be a multi-functional, state-of-the-art motorsports track complex that will include a campground area and buildings.
The potential total impacts of Liberty Bell Motorsports Park and Campground construction and first-year operation on jobs, economic output, employee compensation, and selected indirect business taxes were estimated for Berks County. Estimates were made using a macroeconomic model of Berks County assembled by Penn State’s Institute for Research in Training and Development.
The construction phase of the development of Liberty Bell Motorsports Park and Campground could generate 633 jobs, almost $92 million of economic output, over $27 million of employee compensation, and $972,000 of indirect business tax revenue in Berks County.
These construction impacts will result from three ripple effects on the Berks County economy. First, Liberty Bell itself will generate jobs, output, compensation, and tax revenue. Second, the Park and Campground will purchase some of the goods and services they use to run the facility from suppliers in the local Berks County economy. And, third, impacts will be created because Liberty Bell workers and workers in Berks County industries that supply the Park and Campground will spend some of their income on goods and services sold by Berks County firms.
The total ripple effect on the Berks County economy of the first year of operation of Liberty Bell Motorsports Park and Campground could include 242 jobs, $12.5 million of economic output, $4.1 million of employee compensation, and approximately $369,000 of indirect business tax revenue. The average impacts of the Park and Campground over their working lives are likely to be higher due to steady annual growth in Liberty Bell business that is anticipated.
The total, county-wide impact on state and local personal income taxes during the construction phase of Liberty Bell Motorsports Park and Campground development is estimated to be approximately $733,000. In addition, the total, county-wide impact on state and local personal income taxes during the first year of operation of Liberty Bell Motorsports Park and Campground is estimated to be approximately $99,000.
Construction and operation of Liberty Bell could alter the market and assessed value of the 653-acre tract designated for the Park and Campground. Based upon potential assessment values for the developed land (not including buildings) reported to Liberty Bell, the real estate taxes to be paid to the school district are estimated to exceed $500,000 with an additional $125,000 to Berks County and $32,000 to Union Township. The amount of real estate taxes is expected to increase as further building development occurs.
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