21 ATTACHMENT 05 - Laserfiche WebLink

Home Depot: List of Questions and Responses -Updated 11/26/04 Economic/Fiscal: • Identify the economic impacts to existing businesses in the city. Consider "zero sum game" issue of adding businesses in the sub-region given limited growth. Responded to in Economic Analyses. In shop°t, the City's consultant, Pacific Retail Consulting (PRC), concludes that there is sufficient home improvement demand in the trade area to support the proposed Home Depot and that without it, Pleasanton home improvement dollars would go to Lowe's in Dublin. It is not a "zee°o sum game" since the consultant concluded that adding Lowe's and another Home Depot would increase the amount of home improvement dollars spent in the trade area. • Provide expected gross sales revenues of new store, initially and in three years, with/without Joluison Dr. store in operation. What would the City do with the increased revenues? The annual (net) additional revenues to the City have been projected to be approximately $185, 000 to $260, D00; the N~orst case scenario accounting for increased enforcement costs would result in $185, 000 net additional revenue. The City would deposit these funds in the General Fund. These monies would represent an annual increase in General Fund revenues of approximately .4% and would be available to provide an increase in park services, public safety and other City services to the community. • Provide documentation which led Home Depot to conclude that a second store was necessary. Was a customer zip code analysis conducted? If so, provide details. Response by Home Depot: "Home Depot conducted a zip code analysis that indicated that a large part of their business originates in the southeastern area of Pleasanton. With the existing store at Johnson D~°ive at capacity, it became apparent the°ough this analysis that another Honze Depot was needed in the southeaster°n a~°ea of Pleasanton. " • Given the recent decline in Home Depot's profits, how can it afford to keep two stores open in Pleasanton? Response by Home Depot: "The Home Depot is a national company. Various parts of the country are experiencing a steep decline in the housing market. However, here in California and the Bay Area specifically, The Home Depot does extremely well. In fact, the Bay Area is one of their top markets and they look to expand and locate a store wherever and whenever they can as long as it is viable per their business model. "