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review indicate that the proposed JDEDZ financing plan presented by the city at the August 29,2017 City Council <br /> meeting is both flawed and misleading. <br /> Key findings of the analysis are as follows: <br /> Costco Sales Forecasts <br /> Both city consultants, Century Urban (conducted in 2015) and ALH (2016), overestimate likely Costco sales <br /> based on a mix of outdated data and optimistic forecasting. <br /> Sales Tax Revenue Sharing Repayment <br /> As a result, the city's anticipated ability to make Sales Tax Sharing payments is in doubt, and its expectation of <br /> surplus sales tax revenues is inflated. <br /> Other Funding Sources for JDEDZ <br /> Of the other public funding sources for JDEDZ development, as much as $10.1 million in TIF funding is diverted <br /> from other pressing city transportation needs. <br /> Impact on Pleasanton Retail Market <br /> ALH understates the impact of the JDEDZ on the Pleasanton retail market by (a) overestimating the size and <br /> growth of that retail market and (b) ignoring ongoing trends in the retail industry. <br /> The full Civic Economics report with the detailed analysis is attached. Daniel Houston, a Partner with Civic <br /> Economics and lead author of the study, will be presenting the findings of the report to the City Council at your <br /> meeting on September 18th. He is available for questions or meetings about the study on Monday prior to the <br /> City Council meeting. His phone number is (512) 587-7964. <br /> A copy of the report has also been sent to the press. <br /> In sum, the current JDEDZ proposal asks the City of Pleasanton to invest substantial public funds in a costly, <br /> long-term, speculative venture in a rapidly changing industry, and to do so based on erroneously optimistic <br /> forecasts of costs and benefits. The City Council and the citizens of Pleasanton must demand better information <br /> before making such a momentous investment and developing this key tract of land. The city should put this <br /> project on immediate hold until a full public review is conducted of the independent analysis to insure proper <br /> investment of public funds. <br /> Thank you.-- <br /> Matt Sullivan <br /> 2 <br />