21 ATTACHMENT 13 - Laserfiche WebLink

CONFiI)F..N7'IAT~ & Yit:lZ'1LF,t~E1) ~v~oxr: rxol)t~r_T Regency Centers -Pleasanton Fiscal Analysis Memo October 8, 2007 Page 7 of 17 overlapping store sales with the existing Johnson Drive Home Depot and an additional 10% to account for Home Depot's impact on local small businesses in the area. However, Kosmont estimates Pleasanton is leaking approximately $63.25 million in building and hardware sales annually. Kosmont believes that with leakage of this level, overlapping sales between stores and impacts to local retailers would effectively be recaptured. A recent report by Pacific Retail Consulting estimates that new large-format home improvement retailers may, in fact, boost smaller-store sales as a result of the local area's higher spending on building and hardware materials. Estimates of property tax revenues also vary based on the City's use of a Project assessed value of $38.1 million (which would yield $100,000 in property tax for the City) while Kosmont uses a more recent value from Regency of $48.1 million (yields $125,100 in property tax for the City). Based on the most recent Project value, the benefit to Pleasanton would be a gain of $25,100 over the City's Analysis. Kosmont estimated a range of fiscal expenditures between $115,000 and $193,500 based on two methodologies used by the City's Analysis. Kosmont estimates expenditures to be closer to $115,000 from direct experience analyzing comparable retail developments in different cities. These retail projects are considered institutional quality and as such, are often anchored by national credit tenants who contribute to common area maintenance (CAM) fund which provides safety, property maintenance, disposal and other services for those projects. Some retailers will also hire additional private security patrol and augment CAM services as pertaining to building and grounds maintenance which as a result, greatly reduces the use of City services. The City had limited access to the type of proprietary impact model (IMPLAN) utilized by Consultant to estimate the Project's impact on local economy during the one year construction period. The result of this supplemental projection is that the Project will generate $82 million in total industry output and approximately 632 jobs through direct, indirect and induced economic activity. At fully- stabilized build-out and operation, the Project will also provide approximately 474 full and part-time permanent jobs. This analysis ts+w iouttretrva Purposes ana n not a guarantee d apuil arxuar future rosiAfs. Protets pro fornv ana tax sna,sas aro pt~~ o^ly- Actual rcauNS may aDtier mat~naNY bom tltota eap+esnetf n Uas anaiyw. r ko'smon taSOtVentUraBtY4. Stdleitl Endrto castwnie 97436 vtta~a.aa~.a~su tax87a.Bai.asae www.twemorx.twm