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Total Anticipated On-going Tax Revenues Associated with JDEDZ Attachment 2 identifies the total expected net additional tax revenues that the JDEDZ will generate in the first 25 -years including Sales Taxes, Property Taxes, Transient Occupancy Taxes (TOT), and Vehicle In -lieu taxes6. As described in Attachment 4. the City is expected to receive a total of $84.2 million in net new tax revenues in the first 25 -years of the JDEDZ. Of that amount, under the proposed sales tax sharing proposal with Costco, the City would receive $76.4 million or 91% of those new revenues and Costco would receive $7.8 million or 9% of those new revenues. Using Growth in Taxes to Fund Infrastructure Improvements in Other Cities While the City of Pleasanton has not used tax revenues generated by a development to help fund transportation improvements required for that development, this practice has been utilized in other cities. For example, Livermore, Ukiah and Manteca used some of the sales tax growth from development to help pay for infrastructure improvements required by development. California's Redevelopment Agencies regularly utilized property tax growth generated by development (tax increment financing) to help pay for the infrastructure improvements required for the development to occur. Further, cities routinely use tax sharing agreements to attract large sales tax generating businesses to their communities including the cities of Dublin, Pittsburg, Mountain View, Elk Grove and Manteca. POLICY QUESTION #2: What is Council's preferred financing option at this time for the cost of the necessary transportation improvements? FISCAL IMPACT ALH Economics. an urban and regional economic consulting firm under contract to the City, prepared a fiscal impact analysis of the JDEDZ that was published as part of the FSEIR. 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 JDEDZ is anticipated to generate a projected $1.4 to $1.7 million annual contribution to the City's General Fund7 at the completion of the first phase (which includes the club retail and hotel uses). This net revenue estimate (takes into account both sales tax and property tax) increases to $2.1 to $2.3 million annually8 upon full buildout of the JDEDZ. At full buildout these net fiscal revenues represent an annual contribution equivalent to approximately 2.1 percent to 2.3 percent of the City's General Fund expenditures. These revenue estimates do not include any City contributions to the transportation improvements required by the JDEDZ. Please refer to Attachment 2. Annual Net Fiscal Impact Analysis, for a summary of the fiscal analysis. In addition to the revenue shown in Attachment 2 (which focuses on City revenues and expenditures), property taxes generated from the JDEDZ would provide approximately $277,440 in annual revenue to the Pleasanton Unified School District 6 All tax revenues estimates exclude estimates of leakage from revenues currently received from other Pleasanton stores. Thus, the revenues identified in Attachment 2 would be new to Pleasanton. ' In 2015/16 dollars. 8 In 2015/16 dollars. Page 15 of 16