CCMIN09182017 - Laserfiche WebLink

household income is spent outside the City. He also noted that Costco sales have softened and the company has likely "played its best cards," in terms of real estate. Councilmember Narum inquired whether Mr. Houston, in light of the revised financial information, would be revising Page 2 of his report, as one of the key findings is no longer valid. Councilmember Olson stated this project will still have a net positive effect to the General Fund even with the impact of taxes; even with conservative approach. Mr. Houston affirmed that the City will be keeping 60% of the sales tax revenue, but could also negotiate with another corporation to get a larger percentage of the sales tax. Alford Exner confirmed that the sales tax sharing is a creative accounting approach, however he would rather see a bond issue which is a little more up front. He would prefer to have this matter taken to a vote of the people, as it would ultimately be obligating them to a debt either way. He noted that Costco primarily makes money from membership fees. He commented on traffic safety on the nearby on-ramp.. He is concerned about the lack of a payback analysis and the City's future cash flow, inquiring when the City will break even on the deal. Linda Martin stated that Traffic Impact Fee Funds were not designed to at cost of $10.1 million. Each new developer should pay their pay fair share and individual development projects should construct those improvements which are directly related to their projects. Costco and Neuron have to pay their fair share. Howard Tszz expressed concerns with the negotiations process and inquired whether staff did its due diligence in negotiating or pursuing other projects for this site. He suggested pursuing the strongest candidate willing to pay their fair share. He inquired why the City was obligated to loan money to Neuron and have them pay Costco back. Vice Mayor Pentin stated there is an IKEA application being processed in the City of Dublin and it brings much more traffic. He also noted the City already has two Walmart stores. Alejandra Lopez questioned the financing deal put together by City staff to attract Costco. Giving away taxpayer money and TIF funds for infrastructure improvements to one of the largest corporations in America is not right. She is proud the City is in a good financial position and should not be desperate to expend millions in tax payer funds in giveaways to Costco. Let Costco pay its fair share of road improvements if they want to do build here. She urged the Council to reject staff's recommendation and have staff go to Neuron and Costco and negotiate a better deal for the taxpayers of Pleasanton. Kevin Goebel, General Manager, Doubletree in Pleasanton, understands that there will be a development at this site, however, he wanted to note that traffic will create a large issue. He urged the City Council to ensure that the traffic infrastructure improvements are completed prior to any development on the proposed site. Joanne Reno stated she attended the August 29 community meeting and expressed concerns with creating a negative precedent with the sales tax sharing agreement. She requested clarification regarding the percentages that Costco, the City, and the hotels are each paying for the road improvements andwanted to ensure that the other developers were paying their fair share. She expressed concerns with the impacts to traffic safety, especially on the entryway onto 1-680. City Council Minutes Page 4 of 6 September 18, 2017