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Market Assessment and Fiscal Impact Analysis of the Pleasanton Gateway Business Park Report 3/31/10 Other Costs Other expenditures may be necessary to ensure a desired level of service provision to the Project. These costs may include a number of municipal expenditures, such as transportation, infrastructure improvements, and open space. It is anticipated that further plan documents will specify the amount and type of facilities that will provide the basis for detailed annual operating costs. Net Fiscal Impact Impact of Proposed Project Based on the assumptions and analysis above, the annual net fiscal impact associated with the proposed development is estimated to grow from approximately $123,000 after the first year of development to $285,000 a year after buildout, as summarized in Table 16. The project is estimated to generate about $835,000 in General Fund revenues by year 5 compared to $550,000 in General Fund costs. Allocation Among Project Components The development's components will have different contributions to the overall fiscal impact of the Project. An estimate of the individual impacts of each land use is provided in Table 17. As shown, about 14 percent of the project -wide fiscal surplus a year after buildout is allocated to the Safeway grocery store, 3 percent to drive - through retail uses, 22 percent to other retail, and 62 percent is attributed to the office component. 9 It is important to note that the allocation provided in Table 17 is hypothetical as the Project's individual components would perform differently in isolation compared to the cumulative impact evaluated in this analysis. In other words, the Project is assumed to benefit from the synergetic effect of its components contributing to the overall performance (the cluster of uses creates a project identity, office workers contribute to on -site retail sales, etc.). A more extensive study would be necessary to evaluate how or whether an individual project component would generate a positive General Fund surplus if developed in isolation. In addition, since no such proposal exists, it is not clear if a significantly modified project would be feasible from a market or financial perspective. 9 The allocation analysis assumes that the existing land value is allocated among the Project's components according to the building value and that all new sales generated by the office employees are off site. Economic & Planning Systems, Inc. 27 P:ueaoos 18101P teesanron\Repor0191OUpt8soc