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concentrated in a single store or small number of stores), there would be limited effects on existing food and beverage retailers. The Economic Analysis also concludes that the JDEDZ would have no adverse economic effects on downtown businesses, primarily because downtown offers a unique and different shopping environment than a club retailer, and most downtown businesses sell goods that are quite different from those sold at club retailers. On the positive side, the economic study also notes that a Costco could generate enhanced visibility for existing businesses in the proposed JDEDZ, benefits associated with local availability of low-cost food and gas, and possible long-term increases in property values. Please refer to the Master Response to Comments in the FSEIR regarding Economic and Urban Decay impacts and the Economic Impact Analysis. Timing & Funding of Traffic Mitigation Measures The estimated cost of the transportation mitigations required to support JDEDZ development will total approximately $21.47 million, including design, construction and right-of-way acquisition. The cost estimation for these mitigations identified in the DSEIR does not include the Tri Valley Transportation Fee payment, which is necessary to mitigate the impact to 1-680. Per initial feedback from City Council on September 18, 2017, the transportation improvements would be funded as follows: • TIF Funding. The Stoneridge Drive and 1-680 onramp project has been included in the City's Transportation Impact Fee (TIF) since 1998 and is eligible to receive approximately $6.4 million in TIF revenues. The City's FY 2017/18 through 2020/21 Capital Improvement Program (CIP) allocates $6,400,000 in TIF in Fiscal Year 2018/19 for the Stoneridge Drive and 1-680 onramp project. • Sales Tax Sharing Agreement with Costco. Costco would front $6,785,000 and be repaid through a sales tax sharing agreement not to exceed 25 years with 1.5 percent interest where Costco receives 40 percent of the annual sales tax generated by the Costco store and the City would receive 60 percent. If repayment doesn't occur in 25 years due to lower -than -anticipated sales tax revenues, or if Costco goes out of business within 25 years, the City would not be responsible for repayment. o Costco Cash Contribution. Costco would make a $6,785,000 cash contribution towards the needed transportation improvements. o Right of Way Contributions. Costco would dedicate the right-of-way from land that it owns; the City will seek right of way contributions from other properties subject to redevelopment as part of the JDEDZ, with any remaining right of way acquisitions shared equally between the City and Costco. The right-of-way cost estimate is approximately $1,500,000. Page 14 of 22