CCMIN08292017 - Laserfiche WebLink

Finance Director Olson explained the proposed sales tax sharing, assuming a 3% annual growth and reported this is what they are expected to do at store-level. She reported she used the standard financial projections which is a conservative approach. Councilmember Narum referenced the pre-payment schedule and asked whether it assumes payment of transportation fees and Finance Director Olson responded it does not. Councilmember Narum commented on sales tax sharing and asked whether this would be fronting the money from the zone and Finance Director Olson stated it would be and would result in implementing improvements in advance of other developments. Councilmember Olson referenced slide 10 (Financing Feasibility) and Finance Director Olson confirmed the average sales per warehouse the average for Costco, system-wide, and added an adjustment for the Bay Area market was made because of increases in demand. Councilmember Brown requested clarification regarding the Tri-Valley Transportation Fee and Assistant City Manager Dolan reported the Costco site, occupied previously by Clorox, paid many impact fees that run with the land. The other two vacant parcels will need to pay those fees once they are developed and the fee is based on land-use designations. Councilmember Brown reported receiving many emails from the public, questioning the viability of long-term, brick-and-mortar stores, when on-line stores are increasing in popularity. She asked whether any information was received from consultants, regarding the viability of long-term stores. Finance Director Olson reported if the stores sell food, they are more successful than if they do not. Amy Herman, consultant, reported retail is a dynamic industry and there are constant format changes. The most recent trend in retail is a more experiential shopping where retailers try to give consumers a unique experience when they visit a brick-and-mortar store. Additionally, people like to have the experience of picking out their items, personally, brick-and-mortar businesses must continually evolve to retain their market share. She added there is no tax revenue on food, but rather on other items. In terms of Costco, 60% of the total sales are non-food sales. Councilmember Brown questioned the proposed, seven lanes onto Johnson Drive seems extreme. Community Development Director Beaudin reported the percentage of traffic from the first phase and stated staff is anticipating the full build-out of the JDEDZ, which would be the redevelopment of all parcels within 40 acres. He added three lanes come off Stoneridge onto Johnson, and stated seven lanes are just at the mouth of Johnson Drive and taper down for the remainder of Johnson Drive. In the future, there will be additional queuing areas and capacity and staff will be looking at more-detailed designs as the process moves along. Additionally, staff will look at bicycle and pedestrian areas and there will be improvements for all road users. City Manager Fialho reported the right-of-way acquisition will be taken from the DSRSD Bio facility on the corner of Johnson and Stoneridge Drives. The City's position with Nearon will be the same as with Costco in that they will need to dedicate land, at no cost upon development of the land. He noted the position with District is amicable. Councilmember Brown referenced the General Plan Circulation Element, Policy 1, relative to planned, new developments to pay their fair share of planned roadway improvement costs. In response to her inquiry, City Manager Fialho stated he believes it is consistent with the General Plan Circulation Element, as the user that is advancing the necessary funds to make the improvements necessary at build-out. City Council Minutes Page 2 of 6 August 29,2017