13 ATTACHMENT 13 - Laserfiche WebLink

1. INTRODUCTION AND FINDINGS Economic & Planning Systems, Inc. (EPS) was retained by the City of Pleasanton to provide a fiscal impact analysis and retail market assessment of the proposed commercial development known as the Pleasanton Gateway Business Park (the Project) in Pleasanton, California. The City has expressed concerns regarding the potential effects of this Project on the City's operating budget during construction and after buildout, as well as the potential for the new uses to cannibalize existing Pleasanton businesses. This study is an update of an EPS December 2008 report focused on the likely market impact of the Project's proposed Safeway on other grocery stores in the Pleasanton and Dublin market. The study relies on certain assumptions reflecting the data made available during the original study, such as the retail leakage analysis and grocery store sales estimates. Subsequent to the initial study, the development program proposed by the applicant for the Gateway Business Park Project changed. This analysis places the proposed Project in the context of fiscal, economic, and market trends; identifies potential market constraints; and evaluates the likely impact of the proposed development on the City's General Fund revenues and expenditures. This report also builds on the October 2007 study titled "Sales Forecast and Competitor Impact Analysis" conducted by Pitney Bowes and a subsequent peer review by CB Richard Ellis in May 2008. At the time this report update is being assembled, the national economy is in very poor condition, which has significantly impacted most municipalities and their budgetary practices. Reductions in real estate prices and consumer spending, caused by the current economic downturn, have significantly reduced revenues in many jurisdictions, including those in the City of Pleasanton. This analysis uses the FY 2009 -10 budget, which reflects a decrease in most projected revenues, along with associated cost reductions and a hiring freeze for city employees. The use of the budget under the current economic conditions results in conservative fiscal impact estimates, which could improve to the extent that the economy starts to recover. The new proposal (PUD- 02 -07M) includes 718,216 square feet of office /commercial space located on a 39 -acre site at the southeast corner of Interstate 680 (I -680) at Bernal Avenue (see Figure 1). Specifically, the development program consists of 588,781 square feet of office space in seven buildings and 129,435 square feet of retail space in nine buildings, anchored by a 58,000- square -foot Safeway grocery store that could potentially be increased to 65,000 square feet. The remainder of the retail space is planned to consist of 57,656 square -foot multi- tenant retail shop space and two proposed drive - through uses that include a 4,400 square -foot coffee shop/ restaurant building and a 9,379 square -foot bank.' 1 The drive - through feature is assumed to have minimal impact on the economic performance of these retail uses. Economic & Planning Systems, Inc. 1 Pn soonsp 81O1PJeasanton1Repo rt\1810Lpt8.doc