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JDEDZ PROJECT REVIEW <br /> SEPTEMBER 2017 <br /> Staff Statement Regarding NET Sales Tax Revenues <br /> Worth noting here is a meaningful statement contained on page 12 of the City Council Agenda <br /> Report for August 29, in which a footnotes states: <br /> ALH ECON's sales tax estimates take into account leakage from other stores in <br /> Pleasanton. In other words, the $926,709 in estimated Sales Tax revenues in the first <br /> year of the Costco store being operational on Johnson Dive (sic) would be new revenues <br /> to the city. <br /> In fact, the ALH Economic Impact Study forecasts a total of$92.65 million in taxable sales at <br /> Costco (yielding the sales tax mentioned above)without regard to market impacts. Indeed, this <br /> Agenda Report includes a copy of ALH's Exhibit 57, which estimates net sales taxes from <br /> Phase I of the EDZ at $841,369. <br /> Regardless, the proposed tax sharing agreement is based upon all taxable sales at Costco <br /> without reference to the findings of any market study estimating changes in the local retail <br /> market. And, as Civic Economics Section IV discussion demonstrates, ALH has overstated the <br /> ability of the Pleasanton retail market to absorb Costco sales without impacting other <br /> businesses. <br /> Civic Economics 10 <br />