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