13 ATTACHMENT 13 - Laserfiche WebLink

Market Assessment and Fiscal Impact Analysis of the Pleasanton Gateway Business Park Report 3/31/10 Market Implications of the Project Overall, Pleasanton has a strong and well- diversified retail base. As land is becoming scarce, Pleasanton's retail is not likely to continue growing at the rate it has in the past. Future success of the retail sector's performance will be heavily driven by the City's population growth and ability to continue competing with neighboring jurisdictions by taking full advantage of the remaining retail opportunities while upgrading existing ones. The market implications of the proposed retail in the Gateway Project are discussed below. Safeway Analysis A 58,000- square -foot to 65,000- square -foot, lifestyle- format Safeway store is proposed as part of the Project. According to the Pitney Bowes' October 2007 study, seven supermarkets surveyed in the analysis generate an average annual sales rate of about $600 per square foot. The proposed Safeway is projected to shift 80 percent of sales from the existing market base. The fiscal impact analysis presented in the following chapter assumes that the proposed Safeway will generate $600 per square foot in sales, with 20 percent of the sales as net new. Other Retail Analysis The Project is planned to include 71,435 square feet of retail in addition to the Safeway grocery store. Two drive - through uses proposed as part of the Project include a 4,400 square -foot coffee shop /restaurant building and a 9,379 square -foot bank. The remainder of retail is planned for multi- tenant retail shop space. Potential tenants in the Pleasanton Gateway Business Park retail space could include a number of national and local businesses. National businesses and /or chains may include restaurants such as Pasta Pomodoro, Chevy's, Elephant Bar, and Rubio's; pharmacies such as CVS or Walgreens; as well as electronics stores such as Radio Shack, Verizon, and Game Stop. Given the City's leakage analysis, tenants in the food stores and restaurant categories would be the safest uses for targeting underserved consumer demand. These categories are currently underserved in the City and would result in the least impact on the existing businesses as well as the highest sales rates. The fiscal impact analysis presented in the next chapter assumes $350 per square foot in retail sales based on Dollars & Cents Shopping Centers data and $375 per square foot for a coffee shop /restaurant, with 45 percent of the sales assumed to be net. A new bank and a coffee shop /restaurant are assumed to be fully leased while other retail is assumed to have a 5 percent vacancy rate. It is worth noting that Koll Center, located across Bernal Avenue from the site, has several retail vacancies; however, it does not offer the same anchor tenant space that would be offered by the proposed Pleasanton Gateway Business Park. As a result, the retail development proposed for the site is not likely to directly compete with the retail center across the street and may actually improve performance by attracting additional customers to the area. Economic & Planning Systems, Inc. 9 P:u 6000 spa1wwe,santonReponPRimrpt8.doc