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expenditure reports regularly, nine reports in total through April 2022. As of April 28, 2022, Costco has invested $3,248,202 toward the design and construction of the JDEDZ Project traffic mitigation measures. Agreement Reimbursement Terms Based on the Planninq Level Estimate The Agreement requires Costco to pay all upfront costs associated with the design and construction of the JDEDZ Project traffic mitigation measures and requires the City to pay all upfront costs to acquire the right-of-way necessary to construct the traffic mitigation measures. As previously noted, the Agreement is based on a Planning Level Estimate prepared in 2017 to construct the JDEDZ Project traffic: mitigation measures which consist of the Stoneridge Drive and 1-680 Project and the JDEDZ Street Improvements. The Stoneridge Drive and 1-680 Project was estimated to cost a total of $7,110,000. The Agreement specifies the City will reimburse Costco $6,400,000 in four payments during construction (Section 4.1) and will reimburse Costco the remaining $710,000 from the JDEDZ Transportation Fee and 40 percent of city sales tax revenue generated by the proposed Costco store (Section 4.2 and 4.3). The $710,000 is considered a loan from Costco to the City with an interest rate of one -and -one-half (1.5) percent annually. The design and construction of the JDEDZ Street Improvements were estimated to cost a total of 12,860,000. The Agreement specifies that Costco will be responsible for $6,785,000 of the JDEDZ Street Improvements design and conFtruction cost, and the City will reimburse Costco the $6,075,000 balance of design and construction cost from the JDEDZ Transportation Fee and 40 percent of city sales tax revenue generated by the proposed Costco store (Section 4.2.a). Again, the $6,075,000 is considered a loan to the City with an interest rate of one -and -one-half (1.5) percent annually. The acquisition of the right-of-way needed for the JDEDZ Street Improvements was estimated to cost $1,500,000. The Agreement specifies that Costco will reimburse the City $750,000 of the acquisition costs (Section 3.9). The Agreement further specifies at project completion the $750,000 will be added to the loan balance, but the right-of-way loan balance will not be charged interest (Section 4.2.b). Aareement Reimbursement Terms for Cost Overruns The Agreement defines "Cost Overruns" similarly for both the Stoneridge Drive and 1- 680 Project and the JDEDZ Street Improvements as the final Cost Certification less the Planning Level Estimate (Sections 3.5 and 3.6). While the Final Cost Estimate is not the final Cost Certification, for purposes of this agenda report the Final Cost Estimate is used to determine the expected Cost Overruns. The difference between the Final Cost Estimate and the Planning Level Estimate indicates the Cost Overrun for the Stoneridge Drive and 1-680 Project will be $5,925,389 and the Cost Overrun for the JDEDZ Street Improvements will be $4,010,742. The City must reimburse Costco for the Stoneridge Drive and 1-680 Project Cost Overrun within 60 -days of approving the final Cost Certification (Section 4.1). Costco is responsible for half of the JDEDZ Street Improvement Cost Overrun (Section 3.5), and the City must reimburse Costco the other Page 6 of 11