SPECIAL MEETING AGENDA PACKET - Laserfiche WebLink

4 THE CITY OF ' !MrCITY COUNCIL AGENDA REPORT pLE ASANTON; SPECIAL MEETING September 18, 2017 Community Development Planning Division TITLE: PROVIDE DIRECTION RELATED TO THE PROPOSED JOHNSON DRIVE ECONOMIC DEVELOPMENT ZONE (JDEDZ) TRANSPORTATION MITIGATION IMPROVEMENTS PHASING AND FINANCING PLAN OPTIONS SUMMARY At the August 29, 2017 special meeting, staff presented the City Council with information and analysis to inform a policy discussion about the timing of future development and financing options for the required traffic and transportation mitigation improvements for the JDEDZ (Attachment 1). At that meeting, the City Council requested modifications to the language in the term sheet between the City and Costco, Inc. to include: (1) a provision that terminates all City monetary obligations to Costco under the sales tax sharing option should Costco cease to operate within the City; (2) a provision that terminates the City's monetary obligations to Costco under the sales tax sharing agreement option at 25 years regardless of whether all City monetary commitments to Costco are paid in full at that time; and (3) clarification of the monetary obligations of each entity to cover construction cost overruns. The revised term sheet including these modifications is Attachment 2 to this report. If the City Council elects to move forward with the JDEDZ, staff is seeking formal direction from the City Council on the preferred financing option for the cost of the necessary transportation improvements. RECOMMENDATION 1. Authorize staff to move forward with processing the necessary transaction documents and land use entitlements to implement the JDEDZ. 2. Authorize the City Manager to execute the modified term sheet with Costco, Inc., thereby selecting the sales tax sharing option as the preferred financing option for the cost of the necessary transportation improvements. TERM SHEET MODIFICATIONS As stated above, at its August 29, 2017 special meeting, the City Council requested three modifications to the language in the term sheet between the City and Costco, Inc. to include: (1) a provision that terminates all City monetary obligations to Costco under the sales tax sharing option should Costco cease to operate within the City; (2) a provision that terminates the City's monetary obligations to Costco under the sales tax sharing agreement at 25 years regardless of whether all City monetary commitments to Costco are paid in full at that time; and (3) clarification of the monetary obligations of each entity to cover construction cost overruns. The specific modifications are excerpted below: