Laserfiche WebLink
with the allocations during the next CIP process. There will be an estimated fund balance at the <br /> end of four years of approximately $10 million. <br /> Vice Mayor Pentin inquired as to the reason for the high contingency amount. City Manager <br /> Fialho noted the estimates are very conservative and normal public works projects range between <br /> 5 — 10% for contingencies. He stated that based on the conservative estimates provided, this <br /> project could be 4 -5 million dollars less than projected. <br /> Councilmember Brown referenced a letter submitted by Josh Shumsky stating the group is <br /> motivated to bring hotels forward that would help pay back the City's obligation with sales tax <br /> sharing. Mr. Beaudin noted that this would allow the hotels to move ahead with development prior <br /> to the transportation improvements, as the hotels do not trigger the same transportation mitigation <br /> measures as do other types of development. <br /> Vice Mayor Pentin opened public comment. <br /> Scott Raty, Pleasanton Chamber of Commerce, expressed support for the formation of the <br /> JDEDZ. He stated it would bring needed sales tax revenue which would support the quality of life <br /> for residents. The project has been fully vetted with public hearings, a ballot measure, community <br /> meetings and continued public participation. This is a win for the community. It is important that <br /> we keep the tax revenues high. <br /> Mr. Raty confirmed, in response to Councilmember Brown, that Costco is a member of the <br /> Pleasanton Chamber of Commerce. <br /> Frederick Johnson inquired regarding the current 1-580/680 highway traffic concerns. He stated <br /> that Foothill is so impacted, he has difficulty exiting out from his street and he is concerned that <br /> the freeways are already at capacity without the additional traffic that will be generated from <br /> having a Costco. <br /> Josh Shumsky from Newmark, Cornish and Carey spoke on behalf of hotel developer Tharaldson <br /> Hospitality and stated the group's intent to purchase two parcels of approximately 5 acres and <br /> their commitment to the site and City, and noted the hotel demand is strong. His company is a <br /> nationwide developer and viable. He supported advancement of the JDEDZ and forward progress <br /> of the public approval process. The hotels will be Marriott products and they plan to submit their <br /> application immediately upon the JDEDZ approval. He appreciated the work completed by staff on <br /> this project. <br /> Mr. Shumsky confirmed, in response to Councilmember Brown, that both hotels would be built on <br /> the proposed site. <br /> Daniel Houston, Civic Economics, commented on staff's projections, especially as related to <br /> Costco's sales tax information. He questioned whether the revenue assumptions were overly <br /> optimistic and whether Pleasanton would be able to absorb sales from Costco without impacting <br /> other businesses. <br /> Mr. Houston confirmed that he has been hired to work for various communities, in response to <br /> Councilmember Brown, to evaluate the impacts of big box retailers coming into a community. He <br /> has been doing this for approximately 15 years. <br /> Mr. Houston, in response to Vice Mayor Pentin, stated that it is very difficult to project what is <br /> going to happen with sales tax in 25 years and now there is little doubt that a higher proportion of <br /> City Council Minutes Page 3 of 6 September 18,2017 <br />