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• Costco Cash Contribution. Costco would make a $6.785 million cash contribution <br /> towards the needed transportation improvements. <br /> • Right of Way Contributions. Costco would dedicate the necessary frontage (right- <br /> of-way) from land that it owns; the City will seek right-of-way contributions from <br /> other properties subject to redevelopment as part of the JDEDZ, with any <br /> remaining right-of-way acquisition costs to be shared equally between the City <br /> and Costco. The right-of-way cost estimate is approximately $1.5 million. <br /> In addition, the Agreement included a provision that the City would develop a JDEDZ <br /> Fee that would be charged to future JDEDZ developments at the time they pull permits <br /> with the City to develop their property within the JDEDZ. The City committed to use the <br /> proceeds from the JDEDZ Fee to reduce the amount owed to Costco through the <br /> proposed sales tax sharing agreement. <br /> DISCUSSION <br /> The following table summarizes the allocation of the transportation improvements <br /> project costs by land use: <br /> JDEDZ Transportation Improvements Project Costs Divided by Land Uses <br /> Total Project Cost- Including ROW $21,470,000 <br /> Total Project Cost Excluding Stoneridge Drive & 1-680 <br /> Onramp Project (TIF Funded) $15,070,000 <br /> Allocation of <br /> Percent of Project Costs <br /> Total Trips at Including <br /> JDEDZ Land Uses Build-out ROW <br /> Costco 44% $6,630,800 <br /> Hotels 12% 1,808,400 <br /> Remaining Retail Land Uses 44% 6,630,800 <br /> Total 100% $15,070,000 <br /> Non-Costco Portion to Recover in Future JDEDZ <br /> Transportation Fee $8,439,200 <br /> To ensure all of the future developments in the JDEDZ contribute to the project costs, <br /> consistent with the term sheet, City staff is proposing a JDEDZ Transportation Fee that <br /> would be charged to future JDEDZ development applicants at the time they pull permits <br /> with the City to develop their property with uses approved by the City within the JDEDZ. <br /> The City will use the proceeds from the JDEDZ Fee to reduce the amount owed to <br /> Costco through the proposed Sales Tax sharing agreement which, in turn, will reduce <br /> the years in which the City would be required to share the sales tax generated from the <br /> Costco store with Costco. <br /> Page 3 of 5 <br />