Impact report finds by 2040, East Solano Plan will create between 53,000 and 87,000 permanent new jobs in Solano County, and a $44 to $54 million tax surplus for Solano County
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Between 20,000 and 30,000 jobs expected to be created in Fairfield, Vacaville, Vallejo, and other existing Solano cities
Blue Sky Consulting, a public policy and economics consulting firm, whose clients include the State Treasurer, State Controller, CalTrans, the Department of Housing and Community Development, Housing Finance Agency, and numerous other government agencies, has completed economic impact analysis and fiscal impact analysis of the East Solano Plan.
Economic impact report
Conducted over a six-month time period, the report analyzes the projected economic impact during two phases of the plan: ‘Phase One,’ which is the construction of the new community up to the first 50,000 residents, between 2028 and 2040, and ‘Phase Two and beyond,’ which is the continuation of the development beyond 50,000 residents.
The report found that during the 13-year construction of Phase One, the East Solano Plan will deliver $2.4 billion of economic impacts each year, and create 12,413 new jobs in Solano County. Residents of the existing seven cities in Solano County are expected to fill 86% of these job openings.
By the time Phase One is completed in 2040, the report found that in the baseline scenario, East Solano Plan will create $16.1 billion in new annual economic activity and 53,036 new permanent jobs in Solano County, with almost 20,000 of those jobs being located in Fairfield, Vacaville, Vallejo, and Solano’s other existing cities. The report further found that if the East Solano Plan can create a regional job hub, similar to Walnut Creek, it would create 86,962 new permanent jobs in Solano County by 2040, with over 30,000 of those jobs located in Solano’s 7 existing cities.
To read the full economic report, including details on methodology, please click here.
Fiscal impact report
Blue Sky Consulting has also completed a fiscal impact report. The fiscal report found that the new community is estimated to generate $143.2 million in additional tax revenue for Solano County, and additional costs of $100 million, for a net tax surplus of $43.2 million to Solano County.
In case that the new community creates a larger number of jobs similar to Walnut Creek, the tax revenues increase to $153.9 million, for a net tax surplus of $53.9 million.
To read the full fiscal impact report, including details on methodology, please click here.
Said about the East Solano Plan
“The East Solano Plan is a monumental endeavor that will make a major contribution to solving California’s housing crisis, create 12,000 jobs during the construction phase, and create over 50,000 permanent jobs by 2040. This project takes California back to what made our state great – big, bold, daring endeavors that redefined our economy and made the California Dream possible for generations of Californians. We are proud to support the East Solano Plan.” – Dan Dunmoyer, CEO, California Building Industry Association
“As a lifelong resident of Rio Vista and business owner in this region, I’ve always believed in the potential of Solano County, and the East Solano Plan is a game-changer for our community. This economic impact report shows a clear path to creating over 50,000 new jobs in Solano County by 2040. I support the East Solano Plan – it’s an opportunity we cannot afford to miss.” – Bill Dutra, Executive Chairman, Dutra Group
“The East Solano Plan represents a monumental opportunity for regional growth and development. The construction phase alone would bring $2.4 billion of investment and over 12,000 jobs to Solano County, with over 50,000 jobs supported from 2040 onwards. This project would create generational employment, for workers who apprentice, work, and retire on this project, with hopefully many of them living in the new community. Our company has spent the last 110 years building a better California, including numerous projects in Solano County, a place that many of our employees call home. We would be proud to do our part in bringing this visionary project to life.” – Dick Ghilotti, CEO, Ghilotti Construction
“As the former chair of the Vallejo Economic Development Commission, I have witnessed the substantial economic disparities between Solano County and neighboring regions continue to worsen over the years. With over 12,000 new jobs during construction and over 50,000 new permanent jobs by 2040, this plan is clearly unparalleled in its capacity to drive economic growth. Critically, the report shows that tens of thousands of these jobs would be located in Vallejo, Fairfield, Vacaville, and our other cities, bringing up the entire Solano County. This is a once-in-a-lifetime opportunity to close the prosperity gap with our neighboring regions, and I strongly encourage the community to understand and support this initiative.” – David Cates, former Chair, Vallejo Economic Development Commission
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Note: This article was updated on July 19, 2024 to include fiscal analysis.