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8. Will existing businesses within the JDEDZ be affected? The JDEDZ is being developed to ensure that property owners within the JDEDZ will be able to continue leasing and operating existing businesses for as long as desired. Protecting existing businesses is a primary goal of the proposed JDEDZ, and existing land uses are "grandfathered" in as part of the overall proposal. The currently-proposed JDEDZ allows for some degree of expansion or replacement of existing businesses that do not conform to the uses desired as part of the JDEDZ, while still retaining the JDEDZ's redevelopment and growth potential. 9. Will the City be offering incentives to promote redevelopment of the JDEDZ? A portion of the new City revenues projected to be generated by new business activities within the JDEDZ may be used to fund transportation improvements along Johnson Drive, Stoneridge Drive, and 1-680. The City currently estimates that the cost of these improvements may total $21.5 million, including design, construction, and right-of-way acquisition. Combining funds to be provided by major developers within the JDEDZ, like Costco, and City contributions, would allow these traffic improvements to be built. The City explored various financing options that will be presented to and considered by the City Council. City staff is recommending a combination of a sales tax sharing agreement with Costco, contribution of City Traffic Impact Fees (TIF) collected from developers in the City, and a direct cash contribution from Costco. Under a sales tax sharing agreement, Costco would front a portion of the transportation improvement costs, and then be reimbursed by the City a percentage of the sales tax generated by the Costco warehouse every year. Under all of the financing options being considered, the City would benefit financially, and realize new sales tax revenues. Please refer to the City Council agenda report for the August 29 meeting for more information about the potential financing options. 10.What are some potential benefits of the JDEDZ? The JDEDZ would allow for reuse of this highly visible and underutilized area, which could have positive effects on the City's tax base. The Fiscal Impact Analysis prepared for the project indicates that existing development in the JDEDZ site provides minimal net fiscal benefit to the City ($84,800 annually) due to old buildings, vacant land, and uses that do not generate high levels of tax revenue. In addition, developing the site in accordance with existing land use rules would also generate minimal net fiscal benefit to the City ($338,500 annually), chiefly because these rules do not allow for high-revenue-generating uses. The Fiscal Impact Analysis results indicate that on a worst-case basis, the JDEDZ is anticipated to generate a projected $1.4 to $1.7 million' annual contribution to the City's General Fund at the completion of the first phase (which includes club retail and hotel uses). This net revenue estimate (taking into account both sales tax and property tax, and added costs to the City, such as for law enforcement and emergency services) 1 In 2015 dollars. 5