JOHNSON DRIVE/COSTCO

Subject: City Council to review Johnson Drive Economic Dev. Zone and EIR Tuesday, Feb 4.

The Pleasanton City Council is scheduled to review and potentially approve the Johnson Drive Economic Development Zone (JDEDZ) and associated Environmental Impact Report (EIR) on Tuesday, February 4 at 7:00 p.m. at 200 Old Bernal (City Council Chambers).  This is an important step and will be a requirement before a formal application for a Costco Store or hotel(s) can be reviewed by the Council.

We have heard your views about this development. Here are some issues to consider:

• The overall infrastructure expansion of our roads plus land acquisition costs are estimated to be $23-25 million to widen Johnson Drive, Stoneridge Drive and the I680 ramp at Stoneridge.  Part of these funds will come from the City’s Traffic Impact fees (1/3), part from Costco (1/3) and part from businesses in the area.  This last 1/3 will initially be paid for by Costco (like a loan), then repaid by the City to Costco through future JDEDZ sales tax income.
• Pleasanton’s Costco shoppers will enjoy shopping local and keeping their sales tax revenues in town.  The City estimates that the tax they will receive is between $1.4-$1.7 million/year in the beginning, and after full buildout, $2.3-$2.3 million from the JDEDZ.
• Pleasanton schools will benefit as well.  The City estimates property tax revenues will generate $277,440 per year from the JDEDZ without increasing the number of students.
• There will be an increase in traffic within the JDEDZ area on Owens and Stoneridge Drive.  City data shows almost 12,000 new car trips per day will be generated in the region. 

Come to the City Council meeting and voice your thoughts or submit an email to: CityCouncil@CityofPleasantonCA.gov . For more information, please click the following link to the City Council meeting agenda, and click on Item #11 to upload the staff report.  https://cityofpleasantonca.us13.list-manage.com/track/click?u=1752b86e6098907a42057e416&id=deff5f0e23&e=63ab589a23 . 

 Re:  Johnson Drive Economic Development Zone

A public meeting will be held on Tuesday, August 29 at 6:30, in the City Council Chambers, 200 Old Bernal, Pleasanton to discuss financing of expanded infrastructure for the Johnson Drive Economic Development Zone (JDEDZ) and more.

Come listen and participate in the first round of discussions of the $21.5 million in financing required for road expansions to handle the traffic impacts for Costco, plus future businesses near Stoneridge Drive and I-680.  Since the existing roads cannot handle the thousands of shoppers and freight trucks' traffic and delivery, thoroughfares and freeway entrances will have to be expanded.

What do you think?  Should taxpayer dollars subsidize part of this large development project?   What portion of the $21.5 million are you willing to pay for infrastructure costs for a "members only" Costco store, where non-members are not allowed to shop?  

Is it a reasonable investment for taxpayers to pay for improvements over many years for a big box store, when online vendors like Amazon are dominating the market?

Come to the City Council meeting and voice your thoughts.  If you are concerned by the additional traffic or that your small business will suffer, you should speak out as well.

For more information see the link to the City Council Agenda report on this topic http://weblink.cityofpleasantonca.gov/WebLink8/DocView.aspx?id=270862&dbid=0

If you cannot attend, please email your comments to CityCouncil@Cityofpleasantonca.gov 

Dear Pleasanton Resident:

Our November ballot has an initiative for Pleasanton voters called Measure MM.  The actual text is below in "city speak" which can be confusing.   

"Shall the ordinance proposing to amend the City of Pleasanton's General Plan to prohibit retail uses of 50,000 square feet or greater, larger scale retail and club retail, in the Johnson Drive Economic Development Zone be adopted?"

This has been labeled the "Costco Initiative" and, like many of you, we like to shop at Costco. However, after sorting through the ballot arguments, financial reports and city documents, we learned the expenses of road expansions and new infrastructure will cost about $16 million in infrastructure improvements.  Normally a new business in Pleasanton pays 100% of its own infrastructure expenses to the city.  Under this deal, Costco is not paying their full share.

According to MM's ballot arguments, "the project is estimated to cost $16 million for infrastructure improvements and other expenses, with potentially up to $11 million being subsidized by taxpayers."  Why are we (and other companies that paid 100% of their expenses) paying to bring Costco to Pleasanton when there are already two Costco stores 4-10 miles from Pleasanton shoppers?

We think if Costco wants to locate to Pleasanton, they should pay 100% of their infrastructure expenses. With reported earnings of $76 billion in annual revenues, Costco can afford to pay its fair share.  More and more consumers are shopping online using Amazon.com and other online retailers. As traditional brick and mortar shops close in the Tri-Valley (Sports Authority and Borders), we question if Costco will survive the 25+ years estimated to repay the city and taxpayers for prefunding these infrastructure expenses with future tax revenue. 

 For these reasons, we are endorsing YES on MM, which would limit the building sizes, attract medium sized companies (50,000 sq. ft. or less), result in diversified risk, and support the policies that ALL businesses on Johnson Drive must pay 100% of their own infrastructure improvements costs.