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moderately strong market conditions, suggest that vacancies that might occur as a result of the cumulative project impacts would likely be backfilled within a reasonable time and not be characterized by prolonged vacancy. Even if some sites experience prolonged vacancy because they might be of a size that experiences less demand or they are located in shopping centers with poor visibility or other undesirable characteristics, the prevailing conditions in the market area suggest that these vacancies would be well-maintained and would not devolve into urban decay or deterioration. Moreover, it should be noted that when tenants vacate prior to lease expiration, they continue to be responsible for rent and their share of building operating expenses, such as the Fresh & Easy example in Exhibit 46. While not all tenants would have the wherewithal to continue these payments, national or regional retailers are more likely to have this capability. This is an important consideration because landlords would continue to receive income on these vacated spaces through committed lease payments, which means they would have available financial resources to continue to maintain their properties. Regulatory Controls: During Project-related fieldwork conducted in February 2016, ALH Economics found there were little-to-no visible signs of litter, graffiti, weeds, or rubbish associated with existing commercial nodes in the Project's market area. Thus, ALH Economics concludes that existing measures to maintain private commercial property in good condition in Pleasanton and Dublin are generally effective and would serve to help preclude the potential for urban decay and deterioration in the event any existing retailers in the market area close following the operations of the Project and other cumulative retail projects. Based upon these findings, ALH Economics concludes that the Johnson Drive EDZ Project and the identified cumulative projects would not cause or contribute to urban decay. Fiscal Impact Analysis A fiscal impact analysis of the Project was prepared based upon the methodology and assumptions included in a fiscal impact study prepared for the entirety of the Johnson Drive EDZ in February 2015.' This study used the City of Pleasanton's Fiscal Year 2014/15 Operating Budget as a key resource. ALH Economics updated some of the factors included in this fiscal impact study pursuant to the more recent Fiscal Year 2015/16 budget as well as operating characteristics specific to the Project included in this analysis, such as taxable sales performance and forecasted sales diversions. The fiscal impact analysis results indicate that on a worst case basis, assuming that all diverted sales are diverted from Pleasanton retailers (as opposed to retailers outside of Pleasanton), the Project is anticipated to generate a projected $1.4 to $1.7 million annual contribution to the City of Pleasanton's General Fund at the completion of Phase I. This net revenue estimate increases to $2.1 to $2.3 million annually upon Full Buildout. At Full Buildout these net fiscal revenues represent an annual contribution equivalent to approximately 2.1% to 2.3% of the City's General 3 "Draft Summary - Johnson Drive EDZ Fiscal Impact Analysis, City of Pleasanton," February 5, 2015, Brion &Associates. Johnson Drive EDZ Urban Decay 9 ALH Urban & Regional Economics