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1 ALH Urban & Regional Economics Task 1.10. Urban Decay Determination. Based upon the preceding task findings, ALH Economics will develop on estimate of the extent to which development of the Project may or may not contribute to urban decay. In order to estoblish boseline conditions for this analysis, a visual assessment of existing retail occuponcies/vocancies and building conditions will be conducted, and any areas of existing or potential physical deterioration will be noted. To the extent available, information on prevailing retail vacancy and occupancy rates and general retail market trends will be researched and discussed, as well as information about post retail vacancies and their subsequent backfilling, if relevant. A determination that the Project could result in potential urban decoy would need to be predicated upon a finding of negative economic impact so severe that stores might close as o result and that it would be expected that rather than being reused within a reasonoble time, those buildings and /or property would remain vacant, deteriorate, and lead to the decline of the associated or nearby real estate. If ALH Economics finds no or minimal negative impact, then urban decay would not be a logical result. However, simple store closures are not sufficient to cause urban decoy, as such closures could provide an opportunity for new retailers or other tenants to occupy the vacated space or for property owners to engage in economic development efforts to improve properties. Therefore, ALH Economics will additionally contoct commercial brokers active in and around the market area to obtain their perception of the potential for commercial leasing activity as well as their perception of the future and strength of retailing in and around the market area, or the potential reuse of vacant commercial space for other uses, such as institutional or industrial. Retail market vacancy statistics will be obtained for the market area cities, as well as examples of recent retail leasing activity. Task 1.11. Report Preparation. ALH Economics will prepare a succinct report documenting the urban decoy study tasks, approach, and findings. Quantitative findings relevant to the report will be fully documented and attached as exhibits. A draft will be submitted to ESA for review prior to finalizotion for the EIR. The report will be finalized for the EIR upon receipt of a consolidated set of City comments. Task 2: General Fund Revenue and Cost Impacts Task 2.1. Revenues and Cost Analysis. ALH Economics will prepare an estimate of the net General Fund net revenue impacts of the Project on the City of Pleasanton. This will comprise revenues net anticipated City service costs, including costs required to implement necessary traffic and tronsportation improvements (see text task). For relevant revenue assumptions ALH Economics will rely on the Brion & Associates study prepared for the Project (Brion & Associates, 2015, Draft Summary — Johnson Drive EDZ Fiscol Impact Analysis, City of Pleasanton, February 5). The General Fund Revenue and Cost Impacts analysis will focus on new revenues generated from property taxes, sales taxes, and other relevant revenues, net of existing property taxes and any sales taxes associated with potentiol soles diverted from existing retailers in the City. Estimates of existing and projected property valuation as well as all revenue assumptions will be derived from the Brion study findings. The Brion & Associates study will be relied upon as a source of average cost expenditure factors for City services. These factors will be applied to the Project specifics (e.g., employment density), which will be derived pursuant to Project assumptions developed by Brion & Associates. These service costs will indude major service categories such os general government, community development, PAGE