CCMIN09182017 - Laserfiche WebLink

Ms. Olson confirmed the percentages that each of the entities would be paying and that the hotel's contribution would reduce the City's obligation by $1.8 million. Vice Mayor Pentin affirmed that the properties that are not yet under consideration would be grandfathered in and will benefit from the upzoning. Councilmember Narum inquired regarding utilizing TIF funds on Stoneridge Drive and whether the road improvements were in the General Plan. Traffic Engineer Mike Tassano noted the relevant General Plan references including various years the project was included in updates. He noted that if there is no approved JDEDZ, the City would have to do improvements for any buildout. Councilmember Brown expressed concerns regarding traffic safety, especially driving north on I- 680 and east on 1-580; many drivers wind up going to Livermore rather than to Walnut Creek. Traffic Engineer Tassano reported that the short weave section does present difficulties and that area is one of the heaviest movements the City has and finding a spot to merge in is difficult. Councilmember Brown noted that there will be more vehicles on the ramp when it goes down to one lane. Councilmember Olson confirmed there would be metered lights during peak hours and signals regulating the two lanes merging down to one. Councilmember Brown provided her reasoning for supporting the plan, noting that the JDEDZ site was unsightly and needed to be developed, the developer selected Costco, the City is not involved with seeking out tenants, and the road and infrastructure is something that needed to be done. City staff tried to get creative with the financing, and it was difficult for her to decide to build roads big enough for a Costco, and she struggled with setting a precedent. She referenced the vote of the people, where 63% did not want to limit the size of the development. In closing, she stated that she spoke with many people in the community and that most want the convenience of a Costco. She would like the hotels to come forward as soon as possible in order to reduce the City's financial obligation and she is voting today for the necessary traffic improvements and sales tax sharing option. Vice Mayor Pentin supports the project and noted it is good for Pleasanton, and he has supported theidea since the beginning. The City has a responsibility to economic development and the sales tax sharing is the best of the financing opportunities presented. A bond issue would cost more and this would allow the City to utilize Costco's funding to build the necessary improvements. Councilmember Narum stated that most people want a Costco in Pleasanton and see it as an amenity and a convenience. She does not see a risk as the loan does have a sunset clause and the City is protected if Costco ceases operations. The loan will be forgiven, there is no minimum payment, and the initial loan is allowing for the other development. Councilmember Olson supported this project from its inception. MOTION: It was m/s Brown/Narum to authorize staff to move forward with processing the necessary transaction documents and land use entitlements to implement the JDEDZ; to authorize the City Manager to execute the modified term sheet with Costco, to use the sales tax sharing option as the preferred financing option for the necessary improvements; and to modify the terms document to state clearly there is no minimum payment due to Costco, the payment is strictly based on sales tax, and there will be no funds required from any other account to pay the loan. Motion passed by the following vote: City Council Minutes Page 5 of 6 September 18, 2017