BAE URBAN ECONOMICS, INC. (#2026438)

key findings from the NHA/Jones Hall memo in the Task 1 memo, including a summary matrix that will provide a side-by-side evaluation of the various financing options covered in the Jones Hall memo, to highlight their similarities and differences as they apply to the proposed projec t. Task 3 – Fiscal Impact Analysis In return for the proposed investment of public funds in financing the regional sports facility, the City of Pleasanton potentially would realize a range of economic and fiscal benefits from the project’s ongoing operations including revenue generation from direct impacts (e.g., potential ongoing possessory interest tax on the leasehold interest for the facility, potential sales tax revenues from onsite food, beverage, and retail sales) as well as potential revenue generation from indirect impacts such as sales tax revenues from taxable expenditures by regional sports facility visitors elsewhere in the City of Pleasanton and transient occupancy tax revenues from room bookings by regional sports facility visitors who stay overnight in Pleasanton lodging facilities. The scope for this task will include: • Conduct an initial fiscal analysis of the proposed sports facility project, including direct and indirect impacts (e.g., sales tax, possessory interest tax, and/or other revenues generated directly by the project operations, as well as indirect benefits such as increased sales tax or TOT elsewhere in the city.) o BAE will request information from the developer to detail the proportion of facility usage that is expected from local residents, residents of nearby communities who could be expected to visit for day trips but not stay overnight, and from participants who would come from more distant locations and would be expected to stay overnight for multi-day tournaments, etc. BAE will then generate estimates of potential onsite and offsite sales tax generation, and potential offsite transient occupancy tax generation, based on a range of assumptions. Due to the preliminary nature of the assessment, BAE will likely bracket low and high range estimates. BAE will also evaluate the potential applicability of possessory interest tax to the developer’s proposed leasehold interest in the facility and utilize information from the project pro-forma (e.g., development costs; net operating income), proposed project structuring and other background materials, along with consultation with staff from the Alameda County Assessor’s office to estimate potential possessory interest tax revenue generation. • Provide a final fiscal analysis report detailing methodology, findings, graphics/tables, and policy implications. o The objective of this report is to provide the City of Pleasanton with an understanding of the potential economic and fiscal benefits associated with the proposed project, to weigh against the financial commitments and potential risks associated with the proposed project ownership structure and associated financing approach, which will be provided as part of Task 2. o BAE will prepare a draft report for review and comment by City staff. Upon receipt of a single, consolidated set of City staff comments on the draft, BAE will make revisions as appropriate and submit a final report for the City’s use. Docusign Envelope ID: 28AAFB7A-F31B-469C-B172-17ACC0A628F6Docusign Envelope ID: 6F743673-03C8-43C0-95A5-67A331894F1D