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FINANCIAL STATEMENT <br /> Approximately $6.8 million of the cost of the necessary JDEDZ transportation <br /> improvements' will be funded through a 25-year sales tax sharing agreement with <br /> Costco at a 1.5 percent interest rate. The proposed JDEDZ Fee, if assessed on all future <br /> (non-Costco) development, would result in $8.6 million in revenues that would reduce the <br /> amount the City would be required to reimburse Costco through the sales tax sharing <br /> agreement. If the JDEDZ fee revenues are received after the City fully reimbursed <br /> Costco through the sales tax sharing agreement, then those amounts will be used to <br /> reimburse the City's General Fund. <br /> The $5.2 million ACTC grant will reduce the amount of Traffic Impact Fee funds that the <br /> City will need to allocate towards the Stoneridge Drive Queue Spillback project. The $1.8 <br /> million in Dublin Freeway Reimbursement Reserve funds will cover the City's obligation <br /> to fund 50 percent of the right of way (ROW) expenses as well as to fund 50 percent of <br /> project costs that exceed 2017 estimates. There is a total of$4.1 million available in the <br /> Dublin Freeway Reimbursement Reserve. <br /> BACKGROUND <br /> Purpose of the JDEDZ & Transportation Improvement Costs <br /> The JDEDZ, approved by the City Council on February 4, 2020 changed General Plan <br /> land use designations and zoning to spur investment in 40 acres of mostly underutilized <br /> land primarily fronting Johnson Drive near Interstate 680 (1-680) and Stoneridge Drive. <br /> In order to accommodate the current traffic and the increased traffic that the JDEDZ will <br /> create at full build-out, there are several transportation improvement projects that need <br /> to be constructed, which are currently estimated to cost approximately $27.6 million. <br /> Anticipated Development & Daily Trips <br /> The first development in the JDEDZ is anticipated to be a Costco store. The Costco <br /> store is expected to generate 44 percent of the total daily trips within the JDEDZ. <br /> Tharaldson Hospitality, a hotel developer and property owner in the JDEDZ, have also <br /> indicated their interest in developing two hotels with a maximum of 231 rooms on two <br /> sites that total approximately five acres in the JDEDZ. The hotels would generate about <br /> 12 percent of the total daily trips at full build-out of the JDEDZ. Staff does not know <br /> when the remaining properties in the JDEDZ will be developed consistent with the <br /> JDEDZ zoning. On September 18, 2017, City Council provided policy direction to staff to <br /> ensure that all of the transportation improvements be constructed before Costco could <br /> open a store in the JDEDZ. That direction was reaffirmed with the EDZ approvals in <br /> December and approval of the agreement with Costco in February of 2018, as <br /> described in more detail below. <br /> Funding for Transportation Improvements <br /> Because the Costco store is only going to generate 44 percent of the total daily trips at <br /> full build-out of the JDEDZ, the City negotiated an agreement (Agreement) with Costco <br /> Page 2 of 7 <br />