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JDEDZ PROJECT REVIEW
<br /> SEPTEMBER 2017
<br /> However, a realistic analysis paints a more challenging picture:
<br /> Figure 5
<br /> SALES TAX SHARING AGREEMENT REPAYMENTSCHEDULE.
<br /> bpd Upon n,Wm:a Kte300 `a Voggai
<br /> TERMS OF Amount $ 6,800,000 Repayment City Share
<br /> AGREEMENT erern st Rate 1.502/5 years annually
<br /> 40% 60%
<br /> Year Starting Balance 40%Sharing Principal Interest 60%to City
<br /> 1 $ 6,800,000 $ 234,900 $ 132,900 $ 102,000 $ 352,350
<br /> 2 $ 6,667,100 $ 245,421 $ 145,414 $ 100,007 $ 368,131
<br /> 3 $ 6,521,686 $ 259,328 $ 161,503 $ 97,825 $ 388,993
<br /> 4 $ 6,360,183 $ 268,401 $ 172,999 $ 95,403 $ 402,602
<br /> 5 $ 6,187,184 $ 277,737 $ 184,930 $ 92,808 $ 416,606
<br /> 6 $ 6,002,254 $ 281,504 $ 191,470 $ 90,034 $ 422,255
<br /> 7 $ 5,810,785 $ 288,925 $ 201,764 $ 87,162 $ 433,388
<br /> 8 $ 5,609,021 $ 290,370 $ 206,235 $ 84,135 $ 435,555
<br /> 9 $ 5,402,786 $ 291,822 $ 210,780 $ 81,042 $ 437,733
<br /> 10 $ 5,192,006 $ 293,281 $ 215,401 $ 77,880 $ 439,921
<br /> 11 $ 4,976,606 $ 294,747 $ 220,098 $ 74,649 $ 442,121
<br /> 12 $ 4,756,507 $ 296,221 $ 224,873 $ 71,348 $ 444,332
<br /> 13 $ 4,531,634 $ 297,702 $ 229,728 $ 67,975 $ 446,553
<br /> 14 $ 4,301,906 $ 299,191 $ 234,662 $ 64,529 $ 448,786
<br /> 15 $ 4,067,244 $ 300,687 $ 239,678 $ 61,009 $ 451,030
<br /> 16 $ 3,827,566 $ 302,190 $ 244,777 $ 57,413 $ 453,285
<br /> 17 $ 3,582,790 $ 303,701 $ 249,959 $ 53,742 $ 455,551
<br /> 18 $ 3,332,831 $ 305,219 $ 255,227 $ 49,992 $ 457,829
<br /> 19 $ 3,077,604 $ 306,746 $ 260,582 $ 46,164 $ 460,118
<br /> 20 $ 2,817,022 $ 308,279 $ 266,024 $ 42,255 $ 462,419
<br /> 21 $ 2,550,998 $ 309,821 $ 271,556 $ 38,265 $ 464,731
<br /> 22 $ 2,279,442 $ 311,370 $ 277,178 $ 34,192 $ 467,055
<br /> 23 $ 2,002,264 $ 312,927 $ 282,893 $ 30,034 $ 469,390
<br /> 24 $ 1,719,371 $ 314,491 $ 288,701 $ 25,791 $ 471,737
<br /> 25 $ 1,430,671 $ 316,064 $ 294,604 $ 21,460 $ 474,096
<br /> Total $ 1,136,067 $ 7,311,045 $ 5,663,933 $ 1,647,112 $ 10,966,567
<br /> unpaid balance
<br /> Rather than finishing repayment after 17 years, we estimate that the city could be left with an
<br /> unreimbursed balance of$1.1 million after 25 years. And, rather than having retained a total of
<br /> $25 million in Costco sales taxes over 25 years, the city will have retained just $11 million, an
<br /> average of less than $450,000 per year over the life of the agreement. The agreement we have
<br /> seen calls for supplemental funds to be applied to this debt as additional projects are initiated in
<br /> the JDEDZ, but we have seen no accounting or estimate of their value.
<br /> Moreover, that doesn't begin to address the real shortfall here, as Section IV reviews the
<br /> broader impact on the Pleasanton retail market and thus on real sales tax gains due to the
<br /> JDEDZ.
<br /> Civic Economics 9
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