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which provides a framework for the City and Costco to fund 100 percent of the $27 <br /> million in transportation improvements. The Agreement includes future retail and hotel <br /> developments which account for the other 56 percent of the daily trips generated by <br /> projects in the JDEDZ. On February 20, 2018, City Council approved the Agreement <br /> with Costco. The following is a description of that funding plan included in the <br /> Agreement: <br /> • Traffic Impact Fee (TIF) and ACTC Grant Funding. The Stoneridge Drive and I- <br /> 680 onramp project has been included in the City's Transportation Impact Fee <br /> (TIF) since 1998 and those improvements are eligible to receive approximately <br /> $6.4 million in TIF revenues. The City's FY 2017/18 through 2020/21 Capital <br /> Improvement Program (CIP) allocated $6.4 million in TIF for the Stoneridge Drive <br /> Queue Spillback project. That amount has been carried forward in subsequent <br /> CIP budgets. Since 2018, City staff secured $5.2 million in ACTC's Measure BB <br /> grant money to help fund the Stoneridge Drive and 1-680 Interchange project. <br /> These grant funds cannot be used on another City of Pleasanton project. Thus, <br /> this item includes an allocation of the $5.2 million ACTC grant funds to the <br /> JDEDZ transportation project. <br /> • City of Pleasanton Contributions — The City is obligated to fund 50 percent of <br /> ROW expenses and 50 percent of project costs that exceed 2017 estimates <br /> (other than the Stoneridge Drive Queue Spillback project for which the City is 100 <br /> percent financially responsible). Based on the current ROW and construction <br /> cost estimates, the City is responsible for $1,798,500 ($1 million for ROW and <br /> $798,500 for increased cost estimates). City staff propose to use the Dublin <br /> Freeway Reimbursement Reserve since the intent of that reserve is to fund <br /> projects that improve circulation around, ingress and egress from the 1-680 and I- <br /> 580 freeways. This item includes an allocation of$1.8 million2 from the Dublin <br /> Freeway Reimbursement Reserve to fund the City's contribution. <br /> • Sales Tax Sharing Agreement with Costco. Costco would advance $6.785 million <br /> and be repaid through a sales tax sharing agreement not to exceed 25 years with <br /> 1.5 percent interest where Costco receives 40 percent of the annual sales tax <br /> generated by the Costco store and the City would receive 60 percent. If <br /> repayment does not occur in 25 years due to lower-than-anticipated sales tax <br /> revenues, or if the Costco store closes within 25 years, the City would not be <br /> responsible for repayment. <br /> • Costco Cash Contribution. Costco would make a $6.785 million cash contribution <br /> towards the needed transportation improvements, share ROW costs equally with <br /> the City and share project cost overruns equally with the City (other than the <br /> Stoneridge Drive Queue Spillback project for which the City is 100 percent <br /> financially responsible). <br /> 2 Rounded up to provide a contingency in case actual costs exceed current estimates. <br /> Page 3 of 7 <br />