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JDEDZ PROJECT REVIEW SEPTEMBER 2017 throughout the city if the Costco siting didn't require that expenditure to make the JDEDZ site feasible. Costco TIF Charges: $3.7 million The second pool of TIF related funds dedicated to the Costco project comes from TIF fees levied on the Costco project itself. Fees on specific projects are governed by legislation and extensive case law; in the present case, Civic Economics accepts the city's assertion that $3.7 million is an appropriate TIF for the Costco project. According to the city's original technical report on the fee, the purpose of local TIF funds in California is "to assure that all future development contributes its fair share towards the cost of traffic improvements necessary for build -out of the General Plan ... [T]he proposed traffic fee will require that each new development pay its fair share through fees needed for City-wide traffic improvements will still requiring that individual development projects construct those improvements which are directly related to their project." In the present case, Costco will be assessed a TIF in the amount of $3.7 million, but instead of going into the TIF fund to mitigate Costco's share of traffic growth off-site, that money will be spent closer to the site, arguably including improvements that are directly related to the project. Civic Economics is in no position to opine on the legality of this proposed expenditure and recommends that interested citizens review the matter with local counsel. However, legality aside, this $3.7. million might well be available for other needed transportation projects throughout the city if project -related costs were identified more conservatively or if the Costco were constructed at a site with fewer infrastructure needs. Combined TIF Diversion: $10.1 million Combined, these two expenditures of TIF funds, $6.4 million from the existing fund paid into by all the other developments that preceded the Costco and $3.7 million from the Costco project itself, combine to divert millions of dollars from previously transportation improvement projects throughout the City of Pleasanton. Instead, this $10.1 million will be expended in making the JDEDZ site a viable one for the Costco. Civic Economics 12 P14-0852 and PUD -105, JDEDZ - Public Comments Provided for October 11, 2017 Planning Commission Meeting 50