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competing club retail venues, the Project's market area was defined to include 18 full census tracts
<br /> and three partial census tracts spanning the City of Pleasanton, the majority of the City of Dublin,
<br /> and some unincorporated Alameda County areas. Consumer origin data for nearby club retail
<br /> venues indicates that a large part of their consumers originate from the market area defined for
<br /> the Project. This means market area consumers who want to shop at a club retail store are already
<br /> doing so. It is assumed that these sales will be captured by the Project's club retail store. These
<br /> redirected sales will not be diverted from any existing market area retailers but will comprise sales
<br /> new to Pleasanton.
<br /> Based upon considerations of wholesale purchases, redirected sales, outside market area demand,
<br /> the Project's sales anticipated to be most competitive with the existing retail base include $66.5
<br /> million in Phase I sales and $119.7 million in total sales at Full Buildout. These are the new sales
<br /> anticipated to be generated by market area retail consumers.
<br /> The distribution of sales by retail category will vary between the general retail and club retail
<br /> portions of the Project, but the overall distribution is summarized in Table 1. This distribution is
<br /> based on assumptions regarding the allocation of Project space by type of retail category, and
<br /> associated average sales estimates.
<br /> Table 1.Summary of Project Sales Competitive with Market Areo Retail Sales Base
<br /> General Retail Club Retail Full Buildout Percent of
<br /> Retail Category Phase 1 Full Buildout Phase 1 Full Buildout Total Total
<br /> Motor Vehicles and Ports Dealers 50 50 $3,143,726 $3,143,726 $3,143,726 3%
<br /> Home Furnishings and Appliance Stores $153,189 $5,791,663 54,419,892 54,419,892 $10,211,555 9%
<br /> Building Materiels and Gorden Equip. $142,416 $5,384,380 $2,645,710 $2,645,710 $8,030,090 7%
<br /> Food and Beverage Stores $0 $0 $32,075,342 $32,075,342 $32,075,342 27%
<br /> Gasoline Stations $0 $0 $6,278,039 $6,278,039 $6,278,039 5%
<br /> Clothing and Clothing Accessories Stores $365,722 $13,827,011 $2,023,190 $2,023,190 $15,850,201 13%
<br /> General Merchandise Stores $141,136 $5,335,998 $4,840,093 $4,840,093 $10,176,090 8%
<br /> Food Services and Drinking Places $288,849 $10,920,622 $249,008 $249,008 $11,169,630 9%
<br /> Other Retail Group $407,534 515,407,814 57,395,537 $7,395,537 $22.803,351 1996
<br /> Total $1,490,846 $56,667,407 $63,070,537 $63,070,537 $119,738,024 100%
<br /> Source:Exhibit 15.
<br /> The categories of sales are based upon categories defined by the State of California Board of
<br /> Equalization. The "Other Retail" category is a broad category that includes a wide range of goods,
<br /> such as office supplies, pet supplies, books, toys, pharmacy, jewelry, sporting goods, and gifts. As
<br /> noted, the largest component of Project retail sales is estimated to comprise Food & Beverage store
<br /> sales. This is attributable to the large share of club retail store sales comprising Food & Beverage
<br /> sales.
<br /> Retail Sales Base and Characterization
<br /> The combined sales bases of Pleasanton and Dublin are estimated to total $3.0 billion, comprised
<br /> of approximately equal portions between the two cities. Both Pleasanton and Dublin are retail
<br /> attraction markets, meaning that more sales are captured by area retailers than would be expected
<br /> from resident spending alone. This retail base attraction is characteristic of all major retail sectors
<br /> except for two in Pleasanton — Building Materials & Garden Equipment and Gasoline Stations,
<br /> meaning these two categories are not fully meeting demand generated by Pleasanton consumers.
<br /> However, both of these categories are attraction categories in Dublin, thus the analysis assumes
<br /> Johnson Drive EDZ Urban Decay 2 ALH Urban & Regional Economics
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