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higher cost, it is recommended City Council approve the proposed amendment to the agreement modifying how Cost Overruns are reimbursed. The agreement also requires the City to acquire the right-of-way needed to construct the traffic mitigation measures. Staff has negotiated purchase agreements with the owners of the needed right-of-way based upon the appraised value of the land needed to construct the traffic mitigation measures. It is recommended that City Council review and approve the purchase agreements. RECOMMENDATION 1. Approve the JDEDZ Traffic Mitigation Measures Improvement Plans prepared by Costco's engineering consultants and reviewed and approved by the City Engineer and Caltrans. 2. Review the Final Cost Estimate. 3. Review and approve Amendment One to the 2018 Transportation Improvement and Cost Allocation Agreement. 4. Approve the Purchase Agreements for the right-of-way necessary to construct the work as shown on the JDEDZ Traffic Mitigation Measures Improvement Plans. FINANCIAL STATEMENT Funding for the JDEDZ Project is available in CIP No. 18531, Stoneridge Drive and 1- 680 On -Ramp Project which has a balance of $11,309,956 split between Traffic Impact Fees and a grant from the Alameda County Transportation Commission and CIP No. 21596, JDEDZ ROW and Misc., which has an available allocation of $772,761 from the General Fund. BACKGROUND The JDEDZ is a project that began in April 2014 to encourage investment in approximately 40 acres of underutilized land fronting Johnson Drive near Stoneridge Drive and 1-680. The JDEDZ Project allows club retail (also known as warehouse club), hotel, recreational facilities, and other retail establishments, while also permitting existing uses to remain. The new uses and services are intended to benefit the community as well as generate new sales tax revenue to support City services and programs by broadening the City's economic activities. The California Environmental Quality Act (CEQA) documentation that considered the new uses and services determined traffic mitigation measures on Johnson Drive and Stoneridge Drive are necessary to serve the increased vehicular traffic resulting from the JDEDZ Project development. City Council certified the CEQA documentation and approved the JDEDZ Project in November 2017. Council approved the Transportation Improvement and Cost Allocation Agreement (Agreement) in February 2018 (Attachment 1). The Agreement is between the City and Costco, which owns a large piece of property within the JDEDZ on which it seeks Page 2 of 11