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half, or $2,005,371, within 60 -days of approving the final Cost Certification. (Section <br />4.2.c). <br />Proposed Amendment One <br />The proposed Amendment One to the Agreement modifies the Cost Overrun <br />reimbursement provisions by increasing the amount that the City will reimburse Costco <br />from the JDEDZ Transportation Fee and 40 percent of city sales tax revenue generated <br />by the proposed Pleasanton Costco store (increasing the loan). For the Stoneridge <br />Drive and 1-680 Project, it caps the direct reimbursement to $11,600,000 with the <br />balance being reimbursed through the loan. For the JDEDZ Street Improvements <br />Costco and the City split the cost increase above the Planning Level Estimate equally, <br />and the half the City reimburses Costco is also done so through the loan. The <br />amendment is included as Attachment 4. The effect of proposed Amendment One, in <br />relation to City budgeting for the JDEDZ Project implementation, is discussed later in <br />this agenda report. <br />Right -of -Way <br />The Agreement requires the City to pay full upfront costs to acquire the land necessary <br />to construct the traffic mitigation measures from property owners along Johnson Drive <br />and Stoneridge Drive. Costco is required to grant the land needed from its property to <br />construct the traffic mitigation measures at no cost to the City. Costco is to reimburse <br />the City half the cost of the right-of-way needed for JDEDZ Street Improvements, and in <br />turn, add the amount reimbursed to the loan at the completion of the project. However, <br />the loan amount for the JDEDZ Street Improvements is interest-free. <br />The land needed to construct the traffic mitigation measures consists of the right-of-way <br />and permanent easements, as well as temporary construction easements beyond the <br />work area that are needed to perform the work but will be restored to pre -project <br />condition and will expire when the project is complete. Excluding the right-of-way and <br />easements needed from Costco, land is required from nine properties to complete the <br />project. Associated Right of Way Services (ARWS) assisted City staff with the land <br />acquisition process. Each property was appraised and offers made. Attachment 5 is a <br />graphic showing all land needed to construct the JDEDZ traffic mitigation measures. <br />Staff has successfully negotiated purchase agreements with seven of the nine affected <br />property owners and remains hopeful that the two property owners yet to enter a <br />purchase agreement will do so soon. The two properties without purchase agreements <br />are at the north end of Johnson Drive with the JDEDZ Project area. Both are located <br />where the existing eastside Johnson Drive curb line remains in its current location as <br />the road is not being widened adjacent to these properties. The land needed from these <br />two properties is an 11 -foot surface easement to allow the construction of a six-foot <br />sidewalk and a five -foot -wide landscaped parkway between the sidewalk and the <br />roadway. The goal is to acquire the surface easements and construct the sidewalk and <br />landscaping along these two property frontages so these features are constructed along <br />the entire JDEDZ Project length of Johnson Drive. However, the City has a 13 -foot -wide <br />public service easement (PSE) underlying the desired surface easement. The PSE will <br />Page 7 of 11 <br />