Economic Impact

Sapphire Lake is a proposed public access lake and accompanying housing development located in Poweshiek County. A variety of economic activities are associated with the Sapphire Lake development. This analysis was completed by an independent third-party consultant to quantify the total economic impact of the lake for all major aspects of the development. Due to the size and scope of the proposed project, public financing will be required to ensure the project’s overall success. Because Tax Increment Financing (TIF) has been identified as the best option for financing the project, a significant portion of the analysis included a base case scenario for stakeholder consideration.

A highlight of the economic impacts are listed below, and the full document is also available for download. 

Construction of the lake, lakeside facilities, and homes would result in a total value added impact of around $291 million in value added to Poweshiek County over a period of many years. Spending of new residents and operations of businesses associated with the lake would result in a total value added impact of around $7.6 million in value added annually once all homes and businesses are constructed.

New resident spending in particular will begin generating a permanent, annually reoccurring economic impact within the region as soon as residents begin to move into the new housing development. The Sapphire Lake development is estimated to result in a population increase of 288 primary residents as well as hundreds more part-time residents. The jobs created by this spending within the region could result in as many as 74 new households moving to the region in addition to the new lake residents. As many as 81 additional children may be enrolled in the local school system once all homes are constructed and occupied.

These activities will also have significant tax impacts at the city, county, state, and federal level. The increased spending within the community is estimated to increase local option sales tax revenue by between $11,000 and $38,000 during the construction phase of the project and between $23,000 and $34,000 once new residents begin living in the development. Additionally, activities associated with the new homes are expected to increase local revenues through hotel/motel tax, water (including sewer and storm water) and sanitation services, and the franchise fee on electricity and gas services.