CCMIN08292017 - Laserfiche WebLink

amount of TIF dollars the Citywill collect from other developments in the zone, because it ignores p existing uses. He expressed concerns with increased traffic, asked what Nearon and Costco afford to pay in infrastructure costs, and noted membership fees were not included in their sales numbers. He addressed splitting right-of-way costs, tax revenue growth, and challenges in terms of what the numbers ignore, including sales of other nearby retailers and ignores the huge growth of competitive retail outlets in nearby cities. Michele Flanigan spoke about her enjoyment of Costco and expressed disappointment at delays in the project. She spoke in support of the project noting it would benefit families who are trying to survive. Vice Mayor Pentin closed public comment. In response to Vice Mayor Pentin, City Manager Fialho addressed larger projects completed in the City. In terms of the need for additional public input and vetting, City Manager Fialho reported even on the 18th, when Council will provide direction to staff, that will not be the final decision on the financing. Council will authorize him to sign a term sheet with Costco representatives that will guide the completion of the EDZ documents laying out the framework for improvements in infrastructure in the area. That will go through a serious planning process with the Planning Commission, and ultimately with Council, in December. At some point, Costco will submit a project application which can range from two-to six-months of review. Community Development Director Beaudin addressed a Johnson Drive Economic Zone website where a comprehensive overview of the public outreach that was done is posted and listed them, by date. Traffic Engineer Mike Tassano reported on the TBTC fee noting it has five categories. Because it is a regional fee, it focuses on regional improvements and are therefore, reduced and capped at 30% of what it would cost. When there's a land-use change, the fee will be assessed, and, if they are assessed a fee, they would have to pay it. He addressed the three-lane turn way on Stoneridge Drive; requirement for an additional lane; and noted seven lanes is not unheard of. He added the bottleneck, if there is one, will be at the intersection. Councilmember Brown addressed concerns voiced at a recent meeting and Traffic Engineer Tassano reported the City is working on making improvements to the current regional system including expressway improvements to help alleviate some of the volume occurring there. Councilmember Narum wondered how the cost overruns will be handled and asked for clarification regarding Costco's contribution. Finance Director Olson addressed the Costco cash contribution of $3,085,000 and reported $3.7 million will be the TIF contribution. City Manager Fialho reported if there are cost overruns related to the Stoneridge Drive and 1-680 onramp, the City would be obligated to address it as a City project. Overruns related to projects financed by Costco and through the City's sales-tax-sharing agreement, will be shared by Costco and the City, 50/50. Councilmember Brown asked regarding a commented that was made that City residents already voted on Costco, City Manager Fialho reported there was no vote on Costco, but rather, what was voted on was Measure MM which had a restriction on retail square footage in the Johnson Drive. That would have precluded a Costco in the area. The public gave Council the ability to continue the public discussion and ultimately decide, on behalf of the community. Vice Mayor Pentin addressed the need to consider the two policy questions presented in the report. City Council Minutes Page 4 of 6 August 29,2017