CCMIN08292017 - Laserfiche WebLink

CITY OF PLEASANTON CITY COUNCIL SPECIAL MEETING MINUTES August 29, 2017 1. CALL TO ORDER Vice Mayor Pentin called the special meeting to order at the hour of 6:30 p.m. Councilmember Olson led the pledge of allegiance and provided opening remarks. 2. ROLL CALL Present: Councilmembers Brown, Narum, Olson, Vice Mayor Pentin Absent: Mayor Thorne 3. INTRODUCE POLICY DISCUSSION RELATED TO THE PROPOSED JOHNSON DRIVE ECONOMIC DEVELOPMENT ZONE (JDEDZ) REGARDING TRAFFIC AND TRANSPORTATION MITIGATION IMPROVEMENTS PHASING AND FINANCING PLAN OPTIONS Community Development Director Gerry Beaudin introduced City staff members and consultants connected with the project. He addressed the purpose of the policy discussion, project timeline and key events, Economic Development Zone goals and objectives, Johnson Drive Economic Development Zone (JDEDZ) phasing, traffic and transportation improvements and cost of transportation improvements. Finance Director Tina Olson provided a brief background and addressed financing feasibility related to Costco, design and construction versus right-of-way costs, proposed cost sharing for design and construction, transportation development impact fee for the Stoneridge Drive and 1-680 on-ramp project, proposed sales tax sharing agreement with Costco, estimated total net annual tax revenues from Phase 1, proposed sales tax sharing, assuming 3% annual growth, assuming 1% annual growth, and assuming 15%, 10%, 8%, 5% and 4% annual growth, thereafter, Costco cash contribution. Finance Director Olson continued with the presentation addressing right-of-way acquisition funding, JDEDZ transportation costs by land uses, JDEDZ transportation fee, and what other cities do to encouraged economic development. Finance Director Olson continued with the presentation noting how the City of Pleasanton has done this before, funding options including pros and cons for each, and recommendations. Community Development Director Beaudin noted next steps; asked for direction from Council and presented policy questions for consideration. Councilmember Narum asked who will cover cost overruns. Assistant City Manager Brian Dolan reported in discussions with Costco have led to an understanding that anything related to the non- TIF improvements, would be shared 50-50. Relative to the TIF, it would be responsible for 100% and stated the TIF would be paid for, by new development. Councilmember Narum asked what Nearon would contribute towards transportation in the zone and Assistant City Manager Dolan replied $1.8 million. Finance Director Olson added the proposed hotels on the subject parcels would be responsible for 12% ($1.6 to $1.8 million) of the total trips. Vice Mayor Pentin added that moving forward, any other phased use, would do the same. In response to Councilmember Narum's question, Assistant City Manager Dolan reported if at the 25th year, there are residual obligations, the debt to Costco would sunset. If Costco were to close before the loan payoff, Costco would continue to be responsible.