CCMIN081616 - Laserfiche WebLink

Vice Mayor Narum asked for additional clarification about funding for traffic improvements, and if there would be any difference between the proposed economic development zone and the initiative project. City Manager Nelson Fialho explained that the report discusses two possible ways of financing traffic improvements. Regarding the zone, there are three primary sources of funds including: direct developer contributions, traffic impact fees, and new sales tax generated by Costco. In the case of the initiative, absent a strong anchor tenant that could put forward significant funds up front, the other alternative would be to create a special improvement district that would issue bonds to "front" the necessary revenue to make the improvements and pay an annual tax to pay back the bonds. City Manager Fialho added there has been no discussion of a property tax rebate or other incentive to help with funding. Vice Mayor Narum referenced the economic analysis and asked whether the costs of traffic mitigation measures were taken into account. It was noted that traffic mitigation costs were not included in either analysis. Vice Mayor Narum opened the item for public comment. Tony Perino, President, Nearon Enterprises, expressed support for the findings and conclusions of the study. He commended Council for commissioning the study. Don Maday opined that the City is massaging assumptions, data and arguments to support the pre- conceived conclusions. He added that he believes the report is biased and incomplete and does not show the City spending over $11 million to build a Costco in Pleasanton. He asserted that the initiative reduces vehicle traffic by over 2,500 trips per day. He addressed the initiative's impact on air quality and believed the economic impact study is wrong, adding that local retailers cannot compete with Costco. He alleged that the fiscal impact analysis is incomplete and wondered why taxpayers are funding over $11 million of the bill. Mr. Maday reported it is not the City's job to make a project feasible for a developer. Bill Wheeler asked that the campaign process leading up to the November election be fair and objective by conducting an education campaign and presenting unbiased viewpoints. He looked forward to public discourse and thanked Council for the opportunity to address this matter. Amera Morrison the attorney representing Bill Wheeler, thanked the City for its work on this item and stated they have not had a chance to review the report but will be hiring an economic consultant to review the work. She noted the importance of the public understanding the costs and benefits of the initiative and addressed key issues to focus on during the campaign. In response to questions about funding for transportation improvements for the proposed zone, City Manager Fialho reiterated that funding sources could include: a payment from Nearon Enterprises, traffic impact fees that have been collected by the City over time from other developers and would be paid by any party developing within the proposed EDZ, and through new sales tax generated from Costco. Alternatively to make up the final 1/3 of the funds necessary to complete the traffic improvements, the City could borrow funds, internally, from City reserves and pay itself back with new sales taxes generated by Costco. He added that the new Bernal Community Park property has been funded in that way. Another alternative could include the creation of an assessment district, which is the approach used to fund infrastructure improvements within the Hacienda Business Park. City Council Minutes Page 5 of 7 August 16,2016