21 ATTACHMENT 05 - Laserfiche WebLink

Boulevard store would generate approximately a $1 million per year in additional sales tax revenues to the City are that Home Depot did ~zot take in to account the fact that 30% of these revenues will come from their current store and other lzonze improvement establishments operating in the City today. The goal of the City's fiscal analysis was to determine the net additional annual revenues to the City. Home Depot's goal was to state the revenues to be generated by the new store. An additional difference bet~~een the City's analysis and Home Depot's analysis is that Home Depot's analysis took in to consideration secondary impacts to the community's fiscal position. The City's analysis did not include these dollars because the City would need to either have an in-house econometric model tlzat would make this calculation or hire a consultant to develop a model to be used for tJzis purpose. A majority of the secondary impacts come from the re-circulation of the payroll dollars back in to the community. For example, the annual payroll for the store is estimated to be approximately $10 million. Approximately, twenty percent of these monies are estimated to be spent in Pleasanton purchasing taxable goods and services that will generate approximately $20, 000 per year in additional sales tax revenues to the City. Staff has estimated that the costs to see°vice this development would be betlveen $115, 000 and $190, 000 pe~° yeas°. • What is the impact on Pleasanton taxpayers if this project is ultimately defeated? PRC has calculated that Pleasanton will lose $20 million in improvement sales, mai~zly as a result of Lowe's in Dublin. Opening the proposed Home Depot on Stanley Blvd. would restore $18.5 million of those home imps°ovement sales to Pleasanton. Furthermore, Home Depot would likely build a store nearby in Livermore to capture the same trade area that the proposed store would; in that case, Pleasanton would receive no tax benefits but would still experience impacts. • Pleasanton Budget issues: Provide 3-, 5-year forecasts without Home Depot. Assume development of Staples Ranch. What is percentage revenue impact on budget without Home Depot? The 2007/08FY General Fund Revenue is $95.9M. The General Fund is where all revenues from the Home Depot store (property tax, sales tax, business license tax) are deposited and used to pay for City services provided to the Home Depot store located on Johnson Drive and the proposed Home Depot stoi°e at Stanley Blvd. The current budget only includes the revenues and expenditures fi°om the current store on Joh~zson Drive. The three year and five year fog°ecast for the General Fund Budget is as.follows: The General Fund Budget with the revenues and expenditures for the Johnson Drive store only would be as follows: 3