21 ATTACHMENT 10 - Laserfiche WebLink

Kosmont Companies estimated the construction cost of the Project to be $48.1M and as a result their property tax estimate is $125,000 to the City in the first year after completion of the construction of the Project, escalating by approximately 2 percent each year thereafter. Other Tax Revenues In addition to sales tax and property tax revenues, the Project will generate additional annual tax revenues to the City. An example of this other tax revenues would be business license revenues. Business license revenues are calculated as a percentage of gross receipts. Based on this the other tax revenues were estimated to be approximately $20,000 per year in the May 2007 report. Kosmont Companies has estimated these revenues to be approximately $25,000 per year based on gross receipts for purposes of calculating the City's business license tax which is the largest component of other taxes. Total Additional Tax Revenues In summary, the net additional annual tax revenues to the City for the proposed Pleasanton Gateway project are estimated to be as follows for each of the reports as presented: May 2007 October 2007 Regency Revenues Original Estimate Updated Estimate Estimates Sales Tax $370,000 $250,000 $678,000 Property Tax 100,000 100,000 125,000 Other Taxes 20,000 20,000 25,000 Total $490,000 $370,000 $825,000 Expenditures: Impact on the Cost of City Services There are several ways to calculate the impact of the new retail development (193,481 square feet) on current city services (average costing) and on the required increase in city services (marginal costing). On an average cost basis, assuming that this project does not cause an incremental increase in city services, but rather lowers the cost of services on a per square feet cost of city services based on developed property (i.e., 80 million square feet of existing development before the project and 80.2 million square feet of development after the project is accepted) and based on the current City General Fund budget of $78.8M net of direct program revenues, the additional cost of services would be approximately $1 per square foot of additional retail space or $190,000. If the cost of service analysis is based on the incremental increase in city services required as a result of developing this project, Staff's best guestimate of the incremental increase in City services would be mostly in the area of public safety, code enforcement and street maintenance as shown in the following table: