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JDEDZ PROJECT REVIEW
<br />SEPTEMBER 2017
<br />However, a realistic analysis paints a more challenging picture:
<br />Figure 5
<br />SALES TAX SHARING AGREEMENT REPAYMENT SCHEDULE
<br />Based
<br />ama Forecast
<br />TERMS OF Amount
<br />AGREEMENT
<br />Interest Rate
<br />$ 6,800,000
<br />1.50% annually
<br />25 years
<br />Repayment City Share
<br />40% 60%
<br />Year Starting Balance 40%Sharing Principal Interest 60%to City
<br />1 $ 6,800,000 $ 234,900 $ 132,900 $ 102,000 $ 352,350
<br />2 $ 6,667,100 $ 245,421 $ 145,414 $ 100,007 $ 368,131
<br />3 $ 6,521,686 $ 259,328 $ 161,503 $ 97,825 $ 388,993
<br />4 $ 6,360,183 $ 268,401 $ 172,999 $ 95,403 $ 402,602
<br />5 $ 6,187,184 $ 277,737 $ 184,930 $ 92,808 $ 416,606
<br />6 $ 6,002,254 $ 281,504 $ 191,470 $ 90,034 $ 422,255
<br />7 $ 5,810,785 $ 288,925 $ 201,764 $ 87,162 $ 433,388
<br />8 $ 5,609,021 $ 290,370 $ 206,235 $ 84,135 $ 435,555
<br />9 $ 5,402, 786 $ 291,822 $ 210,780 $ 81,042 $ 437,733
<br />10 $ 5,192,006 $ 293,281 $ 215,401 $ 77,880 $ 439,921
<br />11 $ 4,976,606 $ 294,747 $ 220,098 $ 74,649 $ 442,121
<br />12 $ 4,756,507 $ 296,221 $ 224,873 $ 71,348 $ 444,332
<br />13 $ 4,531,634 $ 297,702 $ 229,728 $ 67,975 $ 446,553
<br />14 $ 4,301,906 $ 299,191 $ 234,662 $ 64,529 $ 448,786
<br />15 $ 4,067,244 $ 300,687 $ 239,678 $ 61,009 $ 451,030
<br />16 $ 3,827,566 $ 302,190 $ 244,777 $ 57,413 $ 453,285
<br />17 $ 3,582,790 $ 303,701 $ 249,959 $ 53,742 $ 455,551
<br />18 $ 3,332,831 $ 305,219 $ 255,227 $ 49,992 $ 457,829
<br />19 $ 3,077,604 $ 306,746 $ 260,582 $ 46,164 $ 460,118
<br />20 $ 2,817,022 $ 308,279 $ 266,024 $ 42,255 $ 462,419
<br />21 $ 2,550,998 $ 309,821 $ 271,556 $ 38,265 $ 464,731
<br />22 $ 2,279,442 $ 311,370 $ 277,178 $ 34,192 $ 467,055
<br />23 $ 2,002,264 $ 312,927 $ 282,893 $ 30,034 $ 469,390
<br />24 $ 1,719,371 $ 314,491 $ 288,701 $ 25,791 $ 471,737
<br />25 $ 1,430,671 $ 316,064 $ 294,604 $ 21,460 $ 474,096
<br />Total $ 1,136,067 $ 7,311,045 $ 5,663,933 $ 1,647,112 $ 10,966,567
<br />unpaid balance
<br />Rather than finishing repayment after 17 years, we estimate that the city could be left with an
<br />unreimbursed balance of $1.1 million after 25 years. And, rather than having retained a total of
<br />$25 million in Costco sales taxes over 25 years, the city will have retained just $11 million, an
<br />average of less than $450,000 per year over the life of the agreement. The agreement we have
<br />seen calls for supplemental funds to be applied to this debt as additional projects are initiated in
<br />the JDEDZ, but we have seen no accounting or estimate of their value.
<br />Moreover, that doesn't begin to address the real shortfall here, as Section IV reviews the
<br />broader impact on the Pleasanton retail market and thus on real sales tax gains due to the
<br />JDEDZ.
<br />Civic Economics 9
<br />P14-0852 and PUD -105, JDEDZ - Public Comments Provided for October 11, 2017 Planning Commission Meeting 47
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