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Market Assessment and Fiscal Impact Analysis <br /> of the Pleasanton Gateway Business Park <br /> Report 3/31/10 <br /> 4. The Project will result in positive net fiscal impact to the City's General Fund. <br /> The fiscal surplus (General Fund revenues minus expenditures) will increase from about <br /> $123,000 in year 1 to $285,000 a year after Project buildout (year 5). These net funds will <br /> be available to fund other City services or reduce certain taxes or fees under City control. <br /> 5. Property tax and sales tax will account for the largest revenue sources. <br /> Property tax revenue will grow from about $77,000 in year 1 to $453,000 in year 5, while <br /> sales tax revenue will increase from approximately $91,000 to $144,000 during the same <br /> time period. A year after Project buildout, these two revenue sources will compose <br /> 71 percent of all Project - related revenues to the City's General Fund. <br /> 6. Police and fire safety costs will make up the largest expenditures to the City's <br /> General Fund. <br /> Police costs will grow from $28,000 in year 1 to $220,000 in year 5, while fire safety costs <br /> will increase from $20,000 to $160,000 during the same time period. A year after buildout, <br /> these two expenditures will account for 69 percent of all Project - related uses of funds. The <br /> police cost estimate is conservative as the Pleasanton Police Department indicated that its <br /> capacity is adequate for increased activity associated with development of the site. Thus, the <br /> EPS estimate is based on a "fair share" allocation of existing departmental costs. <br /> 7. The office component accounts for about 60 percent of the fiscal benefits, while <br /> retail uses, including the Safeway grocery store, account for the remaining <br /> 40 percent. <br /> This estimate is hypothetical as isolation of each individual component from the remainder of <br /> the development does not capture the likely synergistic relationship between the different <br /> components of the overall Project. <br /> The estimates in this analysis are likely to change as a result of programmatic changes, actual <br /> service demands, and economic conditions which vary over time. Chapter 2 presents a citywide <br /> assessment of the retail market trends, and Chapter 3 provides the fiscal analysis along with <br /> the methodology and key assumptions. <br /> Economic & Planning Systems, Inc. 6 P: V8000sp 81o1PIeasanron .doc <br />