21 ATTACHMENT 12 - Laserfiche WebLink

Ms. Emily Wagner October 2, 2007 Page 5 of 6 Depot, Richert Lumber and True Value stores with the majority ($3.0 million) coming from the Johnson Drive Home Depot. In addition the Proposed Store will re-capture dollars from the Livermore Orchard Supply and Home Depot stores and the Dublin Lowe's. In total the new store will generate approximately $11.0 million dollars in new sales for the City of Pleasanton. Although it is difficult to quantify, sales transfers will occur from the other home improvement businesses operating in Pleasanton. Currently there is nearly $155 million dollars in home improvement sales potential in the trade area; however, with the addition of the Dublin Lowe's and with the three Pleasanton companies, overall sales potential remaining in this market is approximately $85 million. If we assume a sales transfer of 4% on these remaining sales potential that equates to approximately $3.4 million of these sales dollars transferring to the Proposed Store. In addition, the Proposed Store will re-capture dollars from the Livermore Orchard Supply and Yard Birds stores and the Dublin Lowe's. In total, the new store will generate approximately $11.0 million dollars in new sales for the City of Pleasanton. Please refer to the following table: Ciimmarv Calr a Tah1P (;,, 7nM rl..ll~r~l Estimated Home Im rovement Sales Dollars in ro osed south Pleasanton Yard Birds tar et Area $154,548,400 Less loss of revenue to Lowe's Dublin -from existin HD, Richert and TrueValue $10,049,600 Less 11% Loss of revenues to Lowe's Dublin -from remainin home im rovement businesses $10,520,532 Sub-total $133,978,268 Estimated Sales Dollars enerated from ro osed south Pleasanton Yard Birds $14,196,500 Sub-total $148,174,768 Less Dollars transferred from existin ma~or com etition to Pro osed Yard Birds Existin Home De of ~ $3,091,193 Richert Redwood $590,400 TrueValue $60,700 Less 4% Loss of revenues to ro osed Yard Birds -from remainin home im rovement businesses $3,404,827 Sub-total $141, 027,648 Plus Sales Dollars reca tured from Livermore HD and OSH and Dublin Lowe's $3,940,822 Total Home Im rovement Sales Dollars in Tar et Area after Pro osed Yard Birds O ens $144,968,470 New Growth in Sales Dollars to Pleasanton from Pro osed Yard Birds $10,990,202 Net Loss of sales dollars to Pleasanton from Dublin Lowe's and no ro osed Yard Birds $20,570,132 Summary In summary with the opening of the new Lowe's store in Dublin, the City will lose $20 million annually in home improvement sales revenue. With the addition of the Proposed Store, the City will gain nearly $11.0 million in new home improvement sales dollars during the first year of operation of the store (2009). For more detail see Exhibit D.