CITY OF LOS ANGELES
VILLAGE AT TOPANGA FEASIBILITY AND FISCAL IMPACT ANALYSIS
The Office of the Chief Legislative Analyst for the City of Los Angeles contracted with RSG to conduct a Feasibility and Fiscal Impact Assessment for the Village at Topanga Westfield Mall (“Project”) in 2012. The Project feasibility conclusion, which indicated the developer was facing a significant funding shortfall, was based on an estimate of construction costs and the project valuation using the direct capitalization, discounted cash flow and internal rate of return methodologies. To assist in the development, the City structured a subvention payment not to exceed 50% of the net new site-specific tax revenues generated by the Project over a 25-year period. Based on RSG’s analysis, the City Council approved a subvention of up to $25 million in exchange for expediting the Project into a single phase, and generating about 1,300 new permanent jobs for the West Valley.