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DISCUSSION As stated above, the July 26 workshop was devoted to creating a comprehensive list of the questions and issues needing further clarification. Some individuals unable to attend the workshops sent a-mails to staff stating their questions and concerns, which were also considered. Based on this input, staff created a list of the detailed questions and responses and has attached those questions and answers to this report. The consultant reports from the traffic engineer, Kimley Horn, and the economic analyst, Pacific Retail Consulting (PRC) provide answers to many of the traffic and economic questions; these reports are attached. Furthermore, staff prepared an updated fiscal analysis based on the data from PRC. Staff shared that analysis with the community at the workshops, generating lively discussions. Based on the input from the community at those meetings, staff finalized its work. Economic Analysis Major concerns with the project involved the economic impact of a second Home Depot store in Pleasanton, including the need for a second store, the potential for the existing Home Depot store to eventually close, the impact that a second Home Depot store would have on existing smaller home improvement businesses in Pleasanton, and the impact that a second store would have on the City's fiscal situation in terms of the expenditures and revenues of the City's budget. City staff therefore requested its consultant, PRC, to conduct a trade area analysis/ market study to evaluate the impact of a second Home Depot store on the existing "sister store" on Johnson Drive and on other home improvement stores in Pleasanton, to evaluate the likelihood of the existing Home Depot to close, and to determine the overall economic impact on the community. In preparing its report, PRC established a trade area for the proposed new Home Depot; considered existing and approved home improvement sales within the trade area, taking into account the Lowe's store under construction in Dublin as well as stores such as Richert's Lumber and True Value Hardware; analyzed demographics such as population and purchasing power of residents within the trade area; and determined the leakage of home improvement sales from Pleasanton to other communities. PRC also conducted a similar analysis for a Yard Birds store, a smaller type of home improvement store owned by Home Depot. The findings of the study are as follows: • Pleasanton will lose approximately $200,000 in sales tax revenues as a result of the transfer of $20.5 million in home improvement sales revenues to the new Lowe's in Dublin; • Net new sales to Pleasanton from the proposed Home Depot store would be $18.5 million or $185,000 in sales tax revenues; • 13% of the proposed Home Depot store's sales will originate from outside of the defined trade area; • The proposed Home Depot store will generate its strongest market in the neighborhood immediately adjacent to the site, i.e., in the eastern portion of Pleasanton and in southwest Livermore; Page 3 of 14