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calculate the net new sales tax revenue to the City. The home improvement sales tax dollars were reduced by approximately 20% for the estimated sales tax revenues that would come from Home Depot's existing location at Johnson Drive and 10% for the store's sales tax revenues that would come from their impact on other small businesses in the area. Therefore, in May staff estimated the net adjusted sales tax revenues from the Project to be approximately $370,000 per year: • Home Improvement $308,079 • Drugs and Related Sundries 18,946 • Coffee and Food 6,750 • Other Retail Stores 36,225 Total $370,000 PRC's report concluded that the net sales revenues from the proposed Home Depot to the City in 2007 dollars would be $18.SM or $185,062. Therefore, staff updated their sales tax projections as follows: • Home Improvement $185,062 • Drugs and Related Sundries 18,946 • Coffee and Food 6,750 • Other Retail Stores 36,225 Total $250,000 On behalf of Regency Centers, Kosmont Companies, a development consultant and economist prepared a fiscal impact analysis of the Project. Their report estimated the sales tax from the Project as follows: • Home Depot $494,172 • Long's Drugs 66,314 • Stores A, B, C 94,500 • Pad Retail 22,500 Total $678,000 Property Tax Revenues The current property tax rate is $1.00 per $100,000 of assessed valuation. Assessed valuation at the time of resale of property or new construction is the market value of the project or cost of construction. For purposes of calculating the property tax revenues for the Project, staff assumed an estimated construction cost of $200 per square foot in the May 2007 report. Based on this, the total market value of the project was estimated to be $38.2M. Pleasanton currently receives approximately $.26 on every $1 of new property tax revenues generated in the City. Therefore, the annual property tax revenues from the Project were estimated to be approximately $100,000 the first year after completion of the construction of the Project; escalating by approximately 2 percent each year thereafter.