21 ATTACHMENT 10 - Laserfiche WebLink

ATTACHMENT 10 Proposed Pleasanton Gateway Project Analysis of Additional Tax Revenues Background In May 2007 staff prepared a fiscal impact analysis for the Pleasanton Gateway Project (Project). The analysis was presented to the Council during a public hearing on the Project. However, prior to the 2"d reading of the Ordinance for the approval of the Project, the Project was continued to enable staff to do additional research on some issues that needed clarification and resolution. Staff then formed an internal work group and held a community workshop on July 26, 2007 to begin to address these issues. Staff retained an economic consultant, Pacific Retail Consulting (PRC) with experience in performing trade area analyses for home improvement stores, including Home Depot and Yard Birds. The objective was to determine if there was capacity in the trade area for two Home Depot stores, the estimated impact of the proposed Home Depot on existing home improvement businesses in Pleasanton, and to address related economic issues. Based on the findings in PRC's report dated October 2, 2007, staff updated the City's fiscal analysis on the Project. Project The proposed Pleasanton Gateway project will consist of 193,481 square feet of new retail space with the following planned mix of retail tenants: Home Depot 141,192 sq. ft. Longs Drugs 15,789 sq. ft. Starbucks 5,000 sq. ft. • Other Retail Stores 31,500 sq. ft. Total 193,481 sq. ft. The following is an analysis of the net increase in tax revenues to the City from the Project. Sales Tax Revenues The City of Pleasanton receives a sales tax rate of 1 % of taxable goods and services sold in the City. The estimated sales tax revenues for a similar type of retail tenant are as follows: Home Improvement $3.30 per square foot Drugs and Related Sundries $1.20 per square foot Coffee and Food $1.35 per square foot Other Retail Stores $1.15 per square foot Based on the above sales tax dollars per square foot of leaseable area, in May 2007 staff estimated the sales tax revenues for the Project to be approximately $530,000 per year. At that time, staff indicated that the sales tax revenue needed to be reduced in order to