RES 18-999 - Laserfiche WebLink

D. Financial Structure The Funding Plan will include the following funding sources: E.1. City Transportation Development Impact Fee (TIF) — The Stoneridge Drive and 1-680 Onramp project has been included in the City's TIF since 1998. At this time, the City can allocate up to $6.4 million in TIF funds to this project. E.2. Costco Cash Contribution — Funds that Costco will contribute to the Project without subsequent reimbursements from the City for Costco's fair share of the remaining costs of the Project, including the $3.7 million in TIF funds that Costco would owe the City that will be applied as a direct cash contribution to the Project. E.3. Right of Way (ROW) — Costco will dedicate to the Project any ROW that Costco owns that is required by the project. The City will seek other ROW required by the Project be dedicated by those owners that are also going to develop their property in the JDEDZ in the near term. For those parcels that are not dedicated to the Project, the City and Costco will equally advance the cost of acquisition. E.4. Sales Tax Sharing Agreement—The City will apply 40% of the sales tax generated by the Costco store in the JDEDZ up to $6.8 million at 1.5% interest plus Costco's share of the right of way acquisition cost that is not dedicated at no interest. The sales tax sharing between the City and Costco shall not exceed 25 years regardless of any outstanding monetary obligations from the City to Costco at that time. The City is also not liable for repaying any outstanding balances to Costco in the event Costco ceases to operate within the City. The City is not obligated to pay more than 40% of the sales tax generated by the Costco store in the JDEDZ regardless of the amount of sales tax generated by the Costco store in the JDEDZ. E.5. Project Cost Overruns The City and Costco will fund Project cost overruns as follows: • The Stoneridge Drive and 1-680 Onramp project cost overruns will be funded by the City's TIF. • Cost overruns for the remaining Project scope to be shared equally between Costco and the City. E.G. JDEDZ Transportation Fee -To ensure all of the future developments in the JDEDZ contribute towards the Project costs, the City will develop a JDEDZ Transportation Fee (JDEDZ Fee) that would be charged to future JDEDZ developments at the time they pull permits with the City to develop their property within the JDEDZ. The City will use the proceeds from the JDEDZ Fee to reduce the amount owed to Costco through the proposed Sales Tax sharing 9I r3r.