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2. Why is the City interested in developing an EDZ? The City is interested in exploring options that will develop this vacant land to its full potential and add value to the existing businesses within the EDZ. The City is seeking to change the land use rules that govern development on the site to encourage new uses that will diversify the City's land use and economic base in order to offer a wider range of services and to continue to evolve and grow the City's economy. This approach is consistent with various policies in the City's General Plan, which seeks to: • encourage comprehensive planning of underutilized areas (Land Use Element, Policy 6); • enhance Pleasanton's economic base(Economic and Fiscal Element,Goal 2, Policy 1);and • maintain a diverse and stable revenue system (Economic and Fiscal Element, Policy 18). 3. How were the boundaries of the JDEDZ drawn? Staff evaluated sites throughout the City to determine whether they would be suitable for an EDZ, and quickly focused on Johnson Drive as the most appropriate area because of its large cluster of available properties suitable for new business growth, its location near a major freeway interchange, and the fact that it is not immediately adjacent to a residential neighborhood,thus minimizing impacts on residents. Also, interest in the former Clorox site, recently vacated, presented an opportunity to be more proactive in the City's planning process. The JDEDZ boundaries were identified based on existing land use conditions and consultation with property owners. The overall size and scale of the JDEDZ were intentionally limited in order to focus on properties with the most potential for change,and to reflect the desire of the City to proceed in a cautious and thoughtful manner. 4. What types of development may be allowed in the JDEDZ? Will there be a Costco?Hotel? No specific development is proposed as part of the JDEDZ. Rather,the City is evaluating the merits of transforming the underlying land use rules and transportation infrastructure in the area to attract different types of businesses than are currently allowed.The existing"General and Light Industrial" zoning allows primarily for warehousing and light-industrial uses,with some limited office development—uses that were once more popular in the area but that don't realize the potential of the site's highly-visible and freeway-accessible location.The proposed JDEDZ would allow for the development of a broader range of retail,visitor-serving,and office uses, including hotels, bookstores, department stores,food markets,gymnasiums,specialty stores,and club retail uses. The club retail use could include a Costco, or a similar tenant,and although the City has had conversations with Costco regarding property in the JDEDZ, no club retail operator(including Costco) has submitted an application to build a new retail facility within the JDEDZ. Major hotel operators have also expressed interest in developing hotels within the JDEDZ area, but also have not submitted an application to the City. 2