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contributions have each increased by just over $1 million. She noted the City's $1.8 million contribution comes from the Dublin Freeway Reimbursement Reserve Fund. Director of Finance Olson detailed the 2017 Sales Tax Sharing Agreement with Costco for the benefit of new Councilmembers where Costco advanced the City $6.785 million to be repaid with 40% of the sales tax generated by Costco for up to 25 years at 1.5% interest. She reported estimates indicate it will be repaid in 17 years with the City then collecting 100% of the sales tax generated by Costco, assuming a conservative 3% annual growth in sales tax. She added Costco typically generates sales tax in the 10% to 15% range, so it is likely to be repaid sooner than this estimate. Director of Finance Olson reported the JDEDZ Transportation Fee was adopted by the City Council in 2018 to recover the City's investment from non-Costco development and to reduce the amount owed to Costco from Sales Tax sharing. Director of Finance Olson reported the $27.6 million allocated to land uses breaks down as $10.4 million from the City for the Stoneridge Drive and 1-680 interchange (funded by Impact Fees and the ACTC grant), $8.5 million from Costco, $1.9 million from the hotels, and $6.7 million from the remaining retail. She advised the breakdown between Costco, the hotels, and the additional retail is based on the additional trips generated by the type of development. Assistant City Manager Dolan reported the City believes Costco will be completed in 2023 and the two hotels in either 2022 or 2023, with 2023 being the more likely timeline. He had no estimates on when the other retail spaces would come online. Director of Finance Olson reported the proposed JDEDZ Transportation Fee will ensure future development contributes to transportation projects and would help reduce the amount owed to Costco through Sales Tax sharing. She explained the retail land uses will be set at $26.78 to $38.16 per building square foot depending on the specific parcel, the hotel land uses would be $14.12 per building square foot, and office uses would be $13.69 per building square foot. She advised there is an option to have Transportation Fee credits against the value of the Johnson Drive Right of Way and for work previously completed. She advised the site's previous developer had fronted all of the California Environmental Quality Act (CEQA) costs and noted those funds can be refunded to them. Assistant City Manager Dolan reported there have been legal challenges to the JDEDZ's environmental documentation. He reported the petitioners in Pleasanton Citizens for Responsible Growth v. the City of Pleasanton argued the City did not adequately consider cumulative impacts. He reported the Superior Court ruled in favor of the City and noted the petitioners appealed the ruling. He reported the Appellate Briefing should be finished around September, but it could be a year before the Appellate Court is ready to hear arguments. He advised the project may continue to move forward unless the petitioner is granted a stay but added this is unlikely in this case. Assistant City Manager Dolan reported staff is asking the City Council to adopt an ordinance and resolution establishing the new JDEDZ Transportation Fee, allocate the $5.2 million ACTC grant, and $1.8 million from the Dublin Freeway Reimbursement Reserve Funds. He advised the acquisition of the right of way is ongoing and should be done over the summer, with construction of improvements starting in August and completed in March 2023. In response to Councilmember Balch's inquiries, Traffic Engineer Tassano confirmed the Stoneridge Drive and 1-680 interchange is the one that received the ACTC grant and needs to be done regardless of the development and confirmed the ACTC grant will be fully utilized to do this improvement. He confirmed the ACTC grant can only be used on the interchange project. He stated the JDEDZ project accelerated the interchange project's timeline ahead of when he would have otherwise pushed it. He advised the interchange project could be isolated from the rest of the JDEDZ and occur on its own. He City Council Minutes Page 5 of 7 May 4, 2021