HomeMy WebLinkAbout*August 21, 2018 Special Meeting Agenda Packet
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STAFF REPORT
CITY COUNCIL
DATE: August 21, 2018
TO: Honorable Mayor and City Councilmembers
FROM:
Christopher L. Foss, City Manager
SUBJECT:
STUDY SESSION: IKEA Retail Center (PLPA-2016-00016)
Prepared by: Amy Million, Principal Planner
EXECUTIVE SUMMARY:
The City Council will receive a report on the status of the IKEA Retail Center project.
The project site is a 27.45-acre parcel on the south side of Martinelli Way between
Arnold Road and Hacienda Drive. The proposed project is for u p to 432,099 square feet
of commercial uses consisting of a 339,099 square foot IKEA store and a 93,000 square
foot retail center. Requested land use approvals include a Planned Development
Rezone with a Stage 1 and Stage 2 Development Plan, a Site Develo pment Review
Permit, Tentative Parcel Map, and certification of a Supplemental Environmental Impact
Report.
STAFF RECOMMENDATION:
Receive the presentation and provide direction to Staff, as necessary.
FINANCIAL IMPACT:
No financial impact related to the processing of this application to the City. All costs
associated with processing the Planning Application is borne by the Applicant. The
proposed project, if approved, could generate $1,936,000 per year in revenue for the
City as further discussed in this report.
BACKGROUND:
IKEA Property, LLC (“IKEA”) has submitted an application to build a new commercial
center on the subject 27.45-acre parcel which is located south of Martinelli Way
between Hacienda Drive and Arnold Road (Figure 1 below). The property has a General
Plan land use designation of General Commercial, which accommodates a range of
regional and community-serving retail, service, and office uses.
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When the Eastern Dublin Specific Plan was adopted in 1995, the site was designated
Campus Office. Commerce One received entitlements to build a corporate campus on
the site and abandoned those plans in 2001. IKEA subsequently acquired the site, and,
in 2004, the City Council approved the development of a 317,000 square foot IKEA
retail store and a 137,000 square foot “lifestyle center” by Blake Hunt Ventures on the
subject parcel (total of 454,000 square feet). The approvals included General Plan and
Specific Plan amendments changing the land use designation to General Commercial.
In late 2006, IKEA withdrew its plans to build a store in Dublin, and Blake Hunt Ventures
acquired the IKEA portion of the project site to enlarge and redesign their commercial
shopping center on the entire 27.45 acres. In 2008, the City Council approved an
application by Blake Hunt Ventures to construct a 327,400 square foot commercial
center (270,000 square feet of retail with ancillary offices and up to 35,000 square feet
of restaurant) referred to as “The Green on Park Place.” The project was ultimately
impacted by the Great Recession and did not move forward.
Subsequently, the City Council considered a proposal to change the General
Commercial designation in February 2013 and directed Staff to study a mixed -use
development proposal of 372 residential units and 37,000 square feet of restaurant uses
on the site (“The Green”). The City Council denied the project April 2015. Following that
action, the property owner marketed the property and IKEA decided to reacquire the
property.
The current General Plan Land Use Designation for the site is General Commercial
which allows 239,144-717,433 square feet of development (Floor Area Ratio of 0.20 -
0.60). The current zoning for the parcel is Planned Development (Ord. No. 34 -08)
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approved for “The Green on Park Place” pro ject. Among other things, the zoning
permits up to 327,400 square feet of development (maximum Floor Area Ratio of 0.27)
with heights of up to 55 feet.
PROPOSED PROJECT:
The proposed IKEA Retail Center project consists of up to 432,099 square feet of
commercial uses. More specifically, the proposed project is for a 339,099 square foot
IKEA store and a 93,000 square foot retail center. Accordingly, IKEA has applied for the
following land use entitlements:
• Planned Development Rezone with a related Stage 1 and 2 Development Plan to
establish zoning uses and development standards;
• Site Development Review requesting approval of the site layout and architecture;
• Tentative Parcel Map for two parcels; and
• Certification of a Supplemental Environmental Impact Repor t.
Planned Development Rezone
The application includes a Planned Development Rezone with a related Stage 1 and
Stage 2 Development Plan, which would replace the existing Planned Development
zoning (Ord. No. 34-08). The Planned Development Rezoning for the property would, if
approved, establish the detailed Development Plan for the site (See Figure 2 below),
the specific uses that are permitted, conditionally permitted, and prohibited, the overall
development density and intensity (e.g. FAR, building heights) for the site, and design
guidelines for the two commercial areas. IKEA is proposing that the Planned
Development Zoning District allow for a variety of retail and service uses to
accommodate the proposed project. The density of .40 FAR (blended density of .60
FAR for Commercial Area 1 and .40 FAR for Commercial Area 2) and height limits (63
feet for Commercial Area 1 and 35 feet for Commercial Area 2) under the proposed
Planned Development Rezoning is similar to the Planned Development zoning
approved for the 2004 IKEA project.
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Site Development Review
A Site Development Review permit for the entire project site, including both the IKEA
building and the retail center is included in the proposed application. The following is a
summary of the key components of the project associated with the Site Development
Review. A copy of the project plans are included as Attachment 1.
Overall Project Design
The project, as proposed, is designed to include a 339,099 square foot IKEA store
located on the westerly 13.65 acres and a 93,000 square foot lifestyle retail center on
the easterly 13.66 acres (.14 acres are reserved for potential future right -of-way for the
BART to Livermore extension). The project is proposed to be constructed in a single
phase. The project includes the construction of proposed buildings, associated parking,
landscaping and frontage improvements along Arnold Road and Martinelli Way.
Site Plan, Access, Circulation, and Parking
The project site is bounded by Martinelli Way to the north, Interstate 580 to the south,
Arnold Road to the west, and Hacienda Drive to the east. As shown on the proposed
site plan, the overall orientation of the project is inward to the pedestrian plaza, with
main entry of the IKEA building facing the central plaza of the retail center. The retail
center has five buildings surrounding the plaza with an additional pad building along
Martinelli Way and a secondary area near the intersection of Martinelli Way and
Hacienda Drive formed by two buildings and a smaller plaza linking the development to
the fronting public streets.
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Primary vehicle access into the site will be provided from Martinelli Way at the existing
intersection at Persimmon Place. The existing 3-way intersection will be improved into a
full intersection creating the main driveway into the development shown as IKEA Place.
Secondary access points are provided to the east on Martinelli Way, on the southern
end of Arnold Road and an exit only on Arnold Road near Martinelli Way.
Building Design/Architecture – IKEA
According to the Applicant, the IKEA Retail Center project is the first of its kind to fully
connect lifestyle shops and restaurants with an IKEA store. The design of the IKEA
building utilizes many of the iconic IKEA features through simple rectilinear forms and a
distinctive store entrance. The exterior colors are predominantly grey with large accent
colors of blue and yellow, to match the colors of the flag of Sweden, the home of IKEA's
original store. The building is four stories with two floors of retail above two floors of
podium parking. The two floors of parking are partially subterranean. The building
stands approximately 61 feet at its tallest point.
The design consists of bold elements enhanced with bold geometry, and varying
building materials such as composite metal panels, steel elements and clear anodized
glass and aluminum storefront that are durable and of high quality.
Building Design/Architecture – Retail Center
The architectural concept
for the Retail Center is
clean and contemporary
referred to by the Applicant
as “Contemporary Casual”.
Contemporary Casual
embodies the qualities of a
strong relationship between
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the indoor and outdoor environments, reinforced through the use of earth tones, unique
materials and inviting, dynamic patio spaces. The project offers a variety of
contemporary building materials such as stone, wood, metal, architectural concrete and
cement plaster. The single-story building forms are horizontally oriented with varying
roof lines that create a unique design statement for the center while complementing the
IKEA store and blending well with the surrounding development. The building forms are
highlighted with functional outdoor spaces where people can gather and socialize, with
landscaping, outdoor seating, enhanced paving treatment, and other features to provide
an appropriate urban scale for the development.
Fiscal Analysis Conducted by the City
For the IKEA Retail Center project, the City initiated a fiscal impact report with Keyser
Marston. A copy of this report is included as Attachment 2. The principal objective of the
report is to estimate the gross annual tax revenues that will accrue to the City’s General
Fund to be generated by the proposed Center.
Based on the report, it is anticipated that the project would generate an additional $1.9
million annually to the City’s General Fund in the form of sales tax, property tax and
other revenues.
Application of Superstore Ordinance
The Dublin Municipal Code prohibits “Superstores,” and the proposed IKEA store’s size,
339,099 square feet, has raised questions about whether it is prohibited by the
“Superstore Ordinance.” However, because of the specific format of the proposed IKEA
store, the Superstore Ordinance does not apply to the project.
The Municipal Code’s definition of “Superstore” focuses both on the size of the building
and on the percentage of floor area devoted to the sale of non -taxable merchandise.
(Municipal Code, Chapter 8.42.) A superstore is a store that exceeds 170,000 square
feet and also devotes at least 10% of its sales floor to the sale of non -taxable
merchandise. The Superstore ordinance defines “Non-taxable merchandise” as
“products, commodities or items, the sale of which is not subject to California State
sales tax.” Under California law, sales of food for human consumption are generally not
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subject to sales tax, although meals in restaurants are taxable. The superstore
ordinance, then, is aimed at a specific type of big box retailer, but not all big box
retailers.
In order to develop, IKEA will need to ensure they do not exceed the allowed threshold
for non-taxable merchandise. IKEA stores’ floor areas are primarily focused on the sale
of home furnishings, which are taxable, but typically a portion of the f loor area may be
devoted to the sale of food. Staff understands that IKEA will devote less than 10
percent of the total floor sales area to the sale of non -taxable food for human
consumption, and the project, if approved, will be conditioned to ensure com pliance with
this criteria.
Vested Rights; Extent of City Discretion
IKEA does not have a vested right to its project, but the City Council’s discretion with
respect to development on the site is somewhat constrained by state and federal law.
IKEA has neither a development agreement nor a vesting tentative map that grant it
vested rights in the City’s existing land use regulations. Thus, under general principles
of California’s land use law, the City could theoretically change the underlying land use
regulations in a way that prevented IKEA from pursuing its project. On the other hand, it
seems likely, for the reasons detailed below, that IKEA could make a viable case that a
fundamental disapproval of retail development on the site would constitute a p artial
“taking” under the California and United States Constitutions. Were a court to find that
the City “took” the property (whether partially, temporarily, or permanently), the City
would be liable for damages equal to the diminished value determined by the court,
which could be multi-millions of dollars given that IKEA paid nearly tens of millions of
dollars for the property in 2016.
The development history of the site is such that IKEA could forcefully argue that when it
purchased the site had “distinct investment backed expectations”—one of the key
factors under the takings clause—that the site could be developed with retail consistent
with the General Commercial designation. IKEA could focus on the fact that the City
previously approved two retail projects on the site, including a project anchored by an
IKEA store, and more recently rejected a proposal that would have allowed residential
on the site.
Despite the possible constraints under the takings clause, the City Council has
significant discretion over the form that the retail project takes. For example, IKEA is
requesting a Planned Development Rezoning that would increase the existing density
and height limits beyond that which was in place when it purchased the property. The
City Council would likely not have takings liability if it were to require IKEA to stay within
the existing density and height limits in the existing PD zoning (0.27 FAR and 55 -foot
height limit. The City Council has significant discretion in considering the currently
proposed PD Rezoning and SDR. Factors such as site design, architecture, and the
project’s compatibility with its surroundings could likely support a denial, so long as
those bases did not reflect a fundamental denial of retail (General Commercial) on the
site.
If the current project were disapproved by the City Council, it would likely result in IKEA
proposing a stand-alone IKEA store applying the maximum FAR (up to 322,845 square
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feet) with all surface parking and without the lifestyle retail center compone nt. The City
Council would likely find it more difficult to disapprove such a project without incurring
liability.
Environmental Impact Report
A Draft Supplemental Environmental Impact Report (Draft SEIR) was prepared and
circulated to the public for the required 45 days. The comment period was open from
January 31, 2018 to March 16, 2018. The City received 124 comment letters during the
public review and comment period.
The Draft SEIR examined potential environmental impacts resulting from the pro ject in
the following topic areas:
• Air Quality/Greenhouse Gas Emissions
• Biological Resources
• Hazards and Hazardous Materials
• Noise
• Public Services and Utilities
• Transportation
In summary, the Draft SEIR concludes that the project will have potentially significant
impact to four of the six topic areas (Air Quality/Greenhouse Gas Emissions, Biological
Resources, Hazards and Hazardous Materials and Noise) and mitigation measures
have been proposed to reduce the impacts in these areas to a level that is les s than
significant. There were no potentially significant impacts identified for Public Services
and Utilities and therefore no mitigations were written.
Similar to other projects of this size, including the 2004 IKEA project, impacts were
identified where, even with the implementation of mitigation measures, the effects to the
environment are still expected to be significant. The identified impacts are related to
Transportation. Although mitigation measures are proposed to reduce the level of the
impact, the impacts could not be fully reduced to less than significant levels in all
instances. A Statement of Overriding Considerations (SOC) would need to be adopted
that identifies all environmental impacts that cannot be mitigated and explain why the
project is being approved. The SOC is required in order to certify the SEIR.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
Community Meetings
The City hosted a community engagement program for the IKEA retail center project.
This outreach program was comprised of four community meetings, as further described
below, to inform the community about the proposed project and the environmental
analysis, and to solicit feedback on the project plans as they evolved.
➢ Community Meeting #1: Open House – June 13, 2016
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The purpose was to introduce the community to the proposed project and receive their
feedback. The meeting was attended by 45 community members.
➢ Community Meeting #2: Scoping Meeting for Supplemental EIR – September 7,
2017
City Staff provided an overview of the p roposed scope and content of the Supplemental
Environmental Impact Report. Approximately 10 community members attended the
meeting.
➢ Community Meeting #3: Transportation and Traffic – December 6, 2017
Staff and the City’s team of technical experts present ed the preliminary findings from
the traffic impact analysis that was prepared for the proposed project. Approximately 20
community members attended the meeting.
➢ Community Meeting #4: Site Design and Aesthetics – February 21, 2018
Staff was joined by the Applicant’s design professionals including the architects,
landscape architects, and civil engineer to provide an overview of the proposed site
design and architecture for the proposed IKEA store and retail center. Approximately
25 community members attended the meeting.
Public Comments
In addition to the public comments on the scoping of the Supplemental EIR and the
Supplemental Draft EIR, 16 written comments have been submitted regarding the
project. These comments are included as Attachment 3 to this report.
Public Notice for Study Session
Public noticing is not required when providing a project update to the City Council.
Although not required, the City mailed notices to all interested parties, property owners
and tenants within 300 feet of the IKEA Retail Center project site and an expanded area
beyond 300 feet, as shown in Figure 2 below. A copy of this Staff Report has been
provided to the Applicant.
Figure 2. Public Notice Boundary
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ATTACHMENTS:
1. Project Plans
2. Fiscal Analysis dated July 2018
3. Public Comments Received
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LANDSCAPESHEET INDEXARCHITECTURALSITETITLE SHEETA0.1DEFERRED SUBMITTALSLANDSCAPE ARCHITECTGENERAL CONTRACTORARCHITECTCONSULTANTSIKEA PROPERTY, INCOWNERDUBLIN, CAHACIENDA DRIVE & MARTINELLI WAYCIVIL ENGINEERTBDDUBLIN IKEA RETAIL CENTERABBREVIATIONSSYMBOLSDRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKSpleasanton, california 945884683 chabot dr. suite 300 graphicsplanningarchitectureinteriorsp 925.244.9620f 925.244.9621civil engineeringRETAIL CENTERHACIENDA DRIVE & MARTINELLI WAYDUBLIN, CALIFORNIAThu, 02 Aug 2018-DUBLIN IKEA4.1.aPacket Pg. 12Attachment: 1. Project Plans (IKEA Study Session)
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EXITONLYEXISTING SEWEREASEMENTPOTENTIALTRUCK ACCESSPROPOSED BARTEASEMENTRAISED PEDESTRIANCROSSINGRAISED PEDESTRIANCROSSINGFUTURE CUL-DE-SACUPON EXTENSION OFMULTI-USE TRAILTWO STORY339,099 SFTOTAL UPPER LEVEL PARKING 509 SPACESBLDG GBLDG HBLDG FBLDG EBLDG DBLDG CBLDG BBLDG ASHEET 13 EXECUTIVE DRIVE, SUITE 150SOMERSET, NJ 08873t: 732.537.0811 f: 732.537.0831SITE DEV. COORDINATORGFA PROJECT NUMBERDUBLIN, CASWC HACIENDA DR & MARTINELLI WAY20150809.0PROJECTPROJECT INFORMATIONDRAWING ISSUE/REVISION RECORDSP-18BUILDING AREAJURISDICTIONCITY OF DUBLINEXISTING ZONINGLAND USE DESIGNATIONIKEA LIMITS SITE AREACOMMERCIAL CENTER LIMITSNET SITE AREATOTAL NET SITE AREADEDICATION FOR RAIL LINE(BART)TOTAL GROSS SITE AREA±13.651 ACRES±13.659 ACRES±27.31 ACRES± 0.133 ACRES±27.446 ACRESDATENARRATIVEPROJECT NOTESTHIS CONCEPTUAL SITE PLAN IS FOR PLANNING PURPOSES ONLY.THIS SITE PLAN IS BASED ON ALTA SURVEY BY JMH WEISS, INC,DATED 11-06-15, RECEIVED VIA E-MAIL 11-13-15.11.18.201511.30.201501.28.201603.04.201703.30.2017PREP SP-4PREP SP-5PREP SP-6PREP SP-11REV SP-11 - ACCESSIIIIABIIIIIKEA (TWO STORY)RETAILTOTAL BUILDING AREA339,099 SF93,000 SF431,459 SFIKEA FIRST FLOORRETAILTOTAL FIRST FLOOR BLDG AREA232,106 SF93,000 SF324,466 SF05.22.2017 SP-12ABALEJANDRO BACARICK JOHNSON06.01.2017 SP-13AB10.16.2017 SP-16DV01.03.2018 SP-17 DVSITE PLANNERSITE AREAPARKING SUMMARYZONING CLASSIFICATIONTOTAL SITE COVERAGE27%325,106 SF/ 27.31 ACTOTAL FAR±0.36432,099 SF/ 27.31 ACINITIALSPD Ord. 34-08EASTERN DUBLINSPECIFIC PLANGENERAL COMMERCIAL06.12.2017 SP-13 REVISED AB07.14.2017 SP-14ABPARKING FOR IKEA IS PROVIDED AS FOLLOWS:USERRATIO REQUIRED SPACES REQ'D PROVIDEDRESTAURANT 13,616 SF 1 SPACE / 100 SF 100ACCESSIBLE TOCUSTOMERS (60%) &1 SPACE / 300 SFNOT ACCESSIBLE TOCUSTOMERS (40%)WAREHOUSE 32,331 SF1 SPACE / 1000 SF 33FURNITURE 124,754 SF1 SPACE / 400 SF312GENERAL RETAIL 168,398 SF1 SPACE / 300 SF562TOTAL IKEA 339,099 SF1,007 1,011PARKING PROVIDED:AUTO TOTAL:1,011 STALLSREQ.ACCESSIBLE 21 STALLS8% CAR/VANPOOL/EV 81 STALLS6% FUTURE CAR/VANPOOL/EV 61 STALLS5% BIKE STALLS 51 STALLSPARKING PER 1,000 SF 2.98/1,000 STALLS SURFACE PARKING FOR THE COMMERCIAL CENTER IS PROVIDED AS FOLLOWS:USERRATIO REQUIRED SPACES REQ'D PROVIDEDRETAIL USE MULTIPLE BUILDINGS1 SPACE / 300 SF 116 34,800 SFRESTAURANT/FOOD USEMULTIPLE BUILDINGS58,200 SF 1 SPACE / 100 SF 350ACCESSIBLE TOCUSTOMERS (60%)1 SPACE / 300 SF 78NOT ACCESSIBLE TOCUSTOMERS (40%)UP TO 264 SEATS OUTDOOR SEATING (13 OR MORE 88SEATS PER AREA) 1 / 13 SEATS TOTAL COMMERCIAL CENTER93,000 SF 632 632TOTAL SITE COVERAGETOTAL RATIO PROVIDED3.80 SP/1000 SFTOTAL1,6391,64308.30.2017 SP-15AB02.13.2018 SP-18 DV03.02.2018 SP-18 REVISED CIVIL PLANDV07.13.2018 REPLY TO CITY COMMENTSDV4.1.aPacket Pg. 13Attachment: 1. Project Plans (IKEA Study Session)
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DUBLIN, CALIFORNIA
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pleasanton, california 94588
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graphics
planning
architecture
interiors
p 925.244.9620
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civil engineeringRETAIL CENTER
HACIENDA DRIVE & MARTINELLI WAY
DUBLIN, CALIFORNIA
Thu, 12 Jul 2018 -
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pleasanton, california 94588
4683 chabot dr. suite 300
graphics
planning
architecture
interiors
p 925.244.9620
f 925.244.9621
civil engineeringRETAIL CENTER
HACIENDA DRIVE & MARTINELLI WAY
DUBLIN, CALIFORNIA
Thu, 12 Jul 2018 -
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pleasanton, california 94588
4683 chabot dr. suite 300
graphics
planning
architecture
interiors
p 925.244.9620
f 925.244.9621
civil engineeringRETAIL CENTER
HACIENDA DRIVE & MARTINELLI WAY
DUBLIN, CALIFORNIA
Thu, 12 Jul 2018 -
DUBLIN IKEA
4.1.aPacket Pg. 35Attachment: 1. Project Plans (IKEA Study Session)
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DUBLIN IKEA NORTHEAST ELEVATION1SOUTHEAST ELEVATION2SOUTHWEST ELEVATION3NORTHWEST ELEVATION4BUILDING D EXTERIOR ELEVATIONS
A4.4ELEVATION NOTESSEE SHEET A0.2 FOR GENERAL NOTES4.1.aPacket Pg. 36Attachment: 1. Project Plans (IKEA Study Session)
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DUBLIN IKEA NORTH ELEVATION1NORTHEAST ELEVATION2WEST ELEVATION3EAST ELEVATION4BUILDING E-F EXTERIOR ELEVATIONS
A4.5aELEVATION NOTESSEE SHEET A0.2 FOR GENERAL NOTESDRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS
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SOUTH ELEVATION1SOUTHEAST ELEVATION2BUILDING E-F EXTERIOR ELEVATIONS
A4.5bELEVATION NOTESSEE SHEET A0.2 FOR GENERAL NOTESNORTHWEST ELEVATION3DRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS
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NORTH ELEVATION1EAST ELEVATION2SOUTH ELEVATION3WEST ELEVATION4BUILDING G EXTERIOR ELEVATIONS
A4.6ELEVATION NOTESSEE SHEET A0.2 FOR GENERAL NOTESDRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS
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NORTH ELEVATION1EAST ELEVATION2SOUTHEAST ELEVATION3SOUTH ELEVATION4BUILDING H EXTERIOR ELEVATIONS
A4.7aELEVATION NOTESSEE SHEET A0.2 FOR GENERAL NOTESDRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS
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DUBLIN IKEA
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SOUTHWEST ELEVATION1WEST ELEVATION2BUILDING H EXTERIOR ELEVATIONS
A4.7bELEVATION NOTESSEE SHEET A0.2 FOR GENERAL NOTESDRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS
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SITE RENDERINGS
A5.4DRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS
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DUBLIN IKEACONCEPTUAL SITE DIAGRAM WITH VIEW LOCATIONS122 - BUILDING C LOOKING NORTHWEST1 - BUILDING C LOOKING EAST5 - BUILDING A LOOKING NORTHEAST3 - BUILDING C LOOKING SOUTHEAST4 - BUILDING A LOOKING SOUTHWEST3454.1.aPacket Pg. 42Attachment: 1. Project Plans (IKEA Study Session)
SITE RENDERINGSA5.5DRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKSpleasanton, california 945884683 chabot dr. suite 300 graphicsplanningarchitectureinteriorsp 925.244.9620f 925.244.9621civil engineeringRETAIL CENTERHACIENDA DRIVE & MARTINELLI WAYDUBLIN, CALIFORNIAWed, 08 Aug 2018-DUBLIN IKEACONCEPTUAL SITE DIAGRAM WITH VIEW LOCATIONS42 - BUILDING B LOOKING NORTHEAST1 - BUILDING B LOOKING SOUTHWEST5 - PLAZA AND BUILDINGS E AND F LOOKING SOUTHWEST3 - NORTH RETAIL ENTRY AND BUILDING G LOOKING SOUTHWEST4 - BUILDING G LOOKING NORTHEAST215NORTH34.1.aPacket Pg. 43Attachment: 1. Project Plans (IKEA Study Session)
SITE RENDERINGSA5.6DRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKSpleasanton, california 945884683 chabot dr. suite 300 graphicsplanningarchitectureinteriorsp 925.244.9620f 925.244.9621civil engineeringRETAIL CENTERHACIENDA DRIVE & MARTINELLI WAYDUBLIN, CALIFORNIAWed, 08 Aug 2018-DUBLIN IKEACONCEPTUAL SITE DIAGRAM WITH VIEW LOCATIONS32 - SOUTH RETAIL ENTRY AND BUILDINGS D, E AND F LOOKING NORTHWEST1 - PLAZA AND BUILDINGS E AND F LOOKING SOUTHWEST5 - NORTHEAST RETAIL ENTRY AND BUILDINGS D AND H LOOKING SOUTHWEST3 - WEST RETAIL ENTRY AND BUILDINGS D, E AND F LOOKING SOUTHEAST4 - PLAZA AND BUILDING H LOOKING NORTHEAST21NORTH454.1.aPacket Pg. 44Attachment: 1. Project Plans (IKEA Study Session)
SITE RENDERINGS
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DUBLIN IKEACONCEPTUAL SITE DIAGRAM WITH VIEW LOCATIONS11 - PLAZA AND BUILDING D LOOKING EAST2 - BUILDING D LOOKING WEST24.1.aPacket Pg. 45Attachment: 1. Project Plans (IKEA Study Session)
FINISHE MATERIALS
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DUBLIN IKEA STUCCO - DRYVIT, 2 COAT INTEGRALCOLOR ACRYLIC SYSTEM. COLOR: LIGHT GRAY WOOD ACCENT - WOODN - COMPOSITEWOOD EXTERIOR CLADDING FINISH: CUBA - SMOOTH FINISH SIDE STUCCO - DRYVIT, 2 COAT INTEGRALCOLOR ACRYLIC SYSTEM. COLOR: SUEDE RICHLITE - RAIN SCREEN FINISH: SLATE STONE - CREATIVE MINES - URBANLEDGE VENEER FINISH: BLACK TRUFFLE METAL CANOPY- PAINTEDSHERWIN WILLIAMCOLOR: CITYSCAPE SW7067-236-C5 CLEAR ANODIZED ALUMINUM STOREFRONTSYSTEM.4.1.aPacket Pg. 46Attachment: 1. Project Plans (IKEA Study Session)
Fiscal Revenues to be generated by the Proposed
IKEA Retail Center
City of Dublin
Prepared for:
Office of Economic Development,
City of Dublin
Prepared by:
Keyser Marston Associates, Inc.
July 2018
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Keyser Marston Associates, Inc. Page 1
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TABLE OF CONTENTS
Page
I.INTRODUCTION 1
A.The Site 1
B.Proposed Site Plan and Building Areas 2
C.Summary of Tax revenues to the City of Dublin 3
II.ANNUAL GENERAL FUND TAX REVENUES TO DUBLIN 4
A.Sales Tax Revenues 4
B.Property Tax Revenues 4
C.Other Revenues 5
III.METHODOLOGY AND ASSUMPTIONS 6
A.Common Assumptions 6
B.General Fund Revenue Assumptions 7
IV.LIMITING CONDITIONS 8
V.ANALYTICAL TABLES 9
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I.INTRODUCTION
The following report has been prepared by Keyser Marston Associates, Inc. (KMA) for the City
of Dublin (City) under contract with the Office of Economic Development Division. The report
evaluates the magnitude of city tax revenue to be generated by the proposed 432,099 square
foot IKEA retail commercial center (Center). The principal objective of the report is to estimate
the gross annual tax revenues that will accrue to the City’s General Fund to be generated by the
proposed Center. The primary tax sources evaluated are:
Property taxes;
Property taxes in-lieu of motor vehicle fees;
Retail sales and use taxes;
Other applicable revenues like Franchise fees etc.
A.The Site
The Center will be located on the north side of the I-580 freeway between Hacienda Drive and
Arnold Road and south of Martinelli Way, in the City of Dublin, CA. The site is comprised of
three parcels with a combined gross area of 27.45 Acres.
Figure 1. IKEA Retail Commercial Center Site Context
Base Map Source: Google Imagery 2017
The Site Hacienda DriveMartinelli Way Arnold RoadI-580
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The assessed parcel numbers of the three parcels that comprise the site are: 986-0033-005-02,
986-0033-004 and 986-0033-006. The site is relatively flat, sloping downward from north to
south. Existing infrastructure, including roads, sewer, storm drain, potable and recycled water,
natural gas, and electricity, are located immediately adjacent to the site. There is one
permanent structure on the site – a small Dublin San Ramon Services District utility building.
B.Proposed Site Plan and Building Areas
The Center will be anchored by a 2-story IKEA store, with up to 339,099 square feet. The
balance of the center will consist of up to 93,0001 square feet of lifestyle retail and restaurant
tenants, located in eight adjacent buildings. Parking for the IKEA store will be located beneath
the building on two levels and is planned to accommodate 1,026 spaces. An additional 568
surface parking spaces are planned for the lifestyle retail and restaurant space.
The Center will have nearly 6 acres of open space and will contain bike and pedestrian paths for
connectivity to BART. Other prominent features of the proposed site plan include a pedestrian
plaza and outdoor amenities. The buildings are designed to be sustainable and energy efficient.
Some of the green features include an energy saving building envelope consisting of insulated
composite metal panels, cool roof, recyclable materials, day-lighting, low water use plumbing
fixtures, and energy efficient mechanical and electrical systems.
Figure 2. Proposed Site Plan
Source: Dublin IKEA Retail Center, Preliminary Landscape Plan
1 While the project will receive entitlements for up to 93,000 square feet of lifestyle and restaurant retail, this fiscal
analysis addresses the impacts of the applicant’s proposed plans dated March 15, 2018, which were submitted for
Site Development Review. Those plans indicate 91,500 square feet of space.
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IKEA Retail Commercial Center Building Area Floor Area
IKEA Store 339,099 SF
Other Retail
Non-Food Related Retail 35,290 SF
Food Related Retail 56,210 SF
Subtotal Other Retail 91,500 SF 2
Total Proposed Commercial Area 430,599 SF
Site Area (Net) 27.45 Acres
FAR 0.36
C.Summary of Tax revenues to the City of Dublin
The Center is anticipated to generate significant ongoing tax revenues to the City of Dublin,
totaling approximately $1.88 million per year, with the largest component being sales tax
revenues at $1.54 million per year.
City of Dublin Annual Recurring General Fund Revenues Annual Revenues
Sales Tax $1,536,000
Property Tax Revenues $328,000
Other Revenues $18,000
Total Annual Recurring City Revenues $1,882,000
Figures rounded to thousands.
Figure 3. Composition of Annual Recurring General Fund Revenues to be generated by the Center
2 Reflects program contained in March 15, 2018 project plans. The project will receive entitlements for up to 93,000
square feet.
82%
17%
1%
Sales Tax
Property Taxes
Other Revenues
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II. ANNUAL GENERAL FUND TAX REVENUES TO DUBLIN
The analysis addresses the anticipated annual General Fund revenues to be generated by the
Center upon completion.
A. Sales Tax Revenues
The largest source of city revenue is sales tax, representing annual revenue of approximately
$1.54 million, or 82% of the total. IKEA is anticipated to generate $120 million of annual taxable
sales, resulting in $1.2 million of annual sales tax revenue to the City. This estimate is
consistent with the taxable sales generated by other IKEA stores in California, which range from
$92.5 million (low) to $142.5 million (high).
Annual retail sales for the adjacent lifestyle retail have been estimated based on the average
taxable sales generated by Persimmon Place in Dublin. Persimmon Place is a successful
lifestyle center located north of Martinelli Way, across from the subject site. Anchors at
Persimmon Place include Whole Foods Market, Nordstorm Rack, Homegoods, Sur La Table,
Pacific Catch and other restaurants. Total annual taxable retail sales from the adjacent retail are
estimated at $33.56 Million (Table 6). Based on the 1% City sales tax rate, the lifestyle retail
component is expected to generate $336,000 of annual sales tax revenue to the City (Table 7).
Total City Sales Tax Revenues Annual Revenues
Sales Tax from IKEA department store $1,200,000
Sales Tax from other retail $336,000
Total Sales Tax $1,536,000
Figures rounded to thousands. See Table 7 for details.
B. Property Tax Revenues
Property tax revenues are driven by the assessed valuation of the Center upon completion. The
anticipated future assessed secured (and unsecured) value of the Center has been calculated
based on the development budget provided by IKEA and the current assessed land value of the
site. The total assessed value of the Center upon completion is estimated at $132.5 Million
(Table 4). The City’s share of the base 1% property tax (net of allocations to the Education
Revenue Augmentation Fund “ERAF”) is 20.7% (Table 6), which will yield approximately
$274,000 of property tax revenues to the City’s General Fund.
Property tax in-lieu of motor vehicle fees is another significant source of revenue for the City.
This revenue source is also tied to the assessed values and is calculated as $0.41 per $1,000 in
assessed value growth (Table 6). Using this factor, the center is estimated to annually generate
$54,000 of property tax in-lieu of motor vehicle fees.
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Total City General Fund Property Tax Revenues Annual Revenues
Property tax $274,000
Property tax in-lieu of motor vehicle fees $54,000
Total Annual City General Fund Property Tax Revenues $328,000
Figures rounded to thousands. See Table 7 for details.
C.Other Revenues
The “other” sources of City General Fund revenues that have been included in the analysis are
franchise fees and business license fees. The magnitude of annual franchise fee revenues to be
generated by the Center has been estimated based on the current level of City-wide franchise
revenues relative to the service population (Table 6). As shown below, it is estimated that the
Center will annually generate approximately $17,000 of franchise revenue to the General Fund.
The current business license fee is $50 per business. As per the current site plan, the Center
will include 4 lifestyle retail businesses and 15 food related businesses. Thus, including IKEA,
total number of businesses in the Center is expected to be 20, and these businesses will
annually generate $1,000 of business license fees.
Other Revenues Annual Revenues
Franchise Fees 1 $17,000
Business License Fees $1,000
Total Annual Other City Revenues $18,000
Figures rounded to thousands. See Table 7 for details.
1 These fees are collected in lieu of rent for use of city streets from refuse collectors, cable television companies and
utilities (Source: City of Dublin Adopted Budget, Fiscal Years 2016-17 and 2017-18).
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III.METHODOLOGY AND ASSUMPTIONS
The fiscal impact analysis provides a projection of annual recurring tax General Fund revenues
that the Center will generate upon buildout. General Fund revenues are the focus of the fiscal
analysis because this is the major source of discretionary spending for key city services,
including public works, law enforcement, and administrative services. The analysis evaluates
the major revenue elements, including property taxes, property taxes in-lieu of motor vehicle
fees, sales tax, business license tax and franchise fees. Projections are static estimates based
on both marginal estimating sources, such as assessed values, and average revenue factors
derived from the City’s adopted FY 2017-18 budget. Estimates are in 2018 dollars. The analysis
is presented in attached supporting tables 1 to 7. The City of Dublin’s budget information is
summarized in Appendix 1. The key assumptions of the analysis and methodologies used to
calculate the revenue impacts are summarized below.
A.Common Assumptions
Center Employment – The total building area has been provided by IKEA and is
presented in Table 2. The IKEA department store is expected to generate 50 managerial
jobs and another 300 retail jobs. Employment generated by the adjacent/other retail is
calculated assuming a factor of 400 sf per employee (Table 3).
Inflation of Revenue and Expenses – The analysis is a static analysis of conditions
upon buildout of the Center. Revenues are presented in 2018 dollars.
Continuity of Legal and Institutional Constraints – The revenue experience of the
City of Dublin is based on the adopted FY 2017-18 budget. The projection assumes that
the revenue sources will remain constant.
Rounding – In some cases the calculated summations presented in the analytical tables
do not precisely match the summations presented in the body of the report. These
differences are due to rounding.
Population – The total population of City of Dublin is assumed to be 59,868, as per
ESRI Total Residential Population forecasts for 2017. This forecast is based on U.S.
Census Bureau, Census 2010 data (Table 5).
Employment – The total employment figure for the City of Dublin is based on ESRI
Total Residential Population forecasts for 2017 (Table 5).
Resident Equivalents – The estimates for Franchise Fees use a modified per capita
measure known as “resident equivalents.” This approach combines residents and
employees to form a single service population. The resident equivalent approach
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weights an employee as 0.5 of a resident, such that two employees are viewed as
having the same impact as one resident (Table 5).
B.General Fund Revenue Assumptions
Sources of City Tax Revenue – The city revenue sources that have been evaluated and
included in the projection are as follows:
-On-going sales/use tax
-On-going property tax revenues
-On-going Business License Fees
-On-going Franchise Fees
Assessed Property Values – The future assessed secured (and unsecured) value of the
Center has been based on the development budget provided by IKEA and the current
assessed land value of the site (Table 4). The land value of the site has been calculated as
the sum of the assessed values of the three land parcels which make up the site (APN 986-
0033-005-02, 986-0033-004, 986-0033-006).
City of Dublin’s Share of Property Tax Revenues – The City of Dublin will receive 20.70%
of the base 1% property tax levy on the property (Table 6).
City of Dublin Property Tax In-Lieu of Motor Vehicle License Fees – Property tax In-Lieu
of Vehicle License Fees has been estimated in accordance with SB 1096, based on data
from the California State Controller’s Office and projected assessed values (Table 6). The
City receives $0.41 per every $1,000 of growth of assessed value.
City of Dublin Sales Tax Revenues – The City of Dublin’s sale tax rate is 1% of taxable
sales. Total taxable retail sales for IKEA stores in California range from $92.5 million (low) to
$142.5 million (high). For this analysis KMA has assumed total taxable retail sales for IKEA
to be $120 million. Annual retail sales from the adjacent retail are calculated based on
taxable sales productivity rates generated by Persimmon Place in Dublin.
Business License Fees – Per the Dublin Municipal Code, the business license fee is $50
per business per year. As per the current site plan, the Center will include 4 lifestyle retail
businesses and 15 food related businesses. Thus, including IKEA, the total number of
businesses in the Center is expected to be 20.
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IV.LIMITING CONDITIONS
1.The analysis contained in this document is based, in part, on data provided by third
parties and published data sources. While Keyser Marston Associates, Inc. (KMA)
believes that the sources consulted are reliable, we cannot guarantee their accuracy.
2.A projection of fiscal revenues is inherently based on judgment. The projections
contained herein are based on the best information available at the time that this
document was prepared. Actual revenues are likely to vary from the estimates contained
in this report.
3.The analysis assumes that the economy will continue to grow at a moderate rate.
4.Revenue projections are based on the best project-specific and fiscal data available at
this time as well as experience with comparable projects. Material changes to costs,
development program, or project performance may render the conclusions contained
herein invalid.
5.Revenue estimates are based on the assumption that sufficient market support exists for
the proposed uses and that the Center will achieve industry standard productivity levels.
6.It is assumed that all applicable laws and governmental regulations in place as of the
date of this document will remain unchanged throughout the projection period. In the
event that this does not hold true, for example, if any tax rates change, the analysis
would need to be revised.
7.KMA is not liable for the accuracy of any abstracts, excerpts or summaries of this report
that are not prepared by KMA.
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V.ANALYTICAL TABLES
Table 1 Summary of Estimated Annual General Fund Revenues to the City of Dublin
Table 2 Program
Table 3 Estimated Project Employment
Table 4 Estimated Assessed Value Upon of the Center Completion
Table 5 Existing Demographic Data - City of Dublin
Table 6 Revenue Source Assumptions
Table 7 Estimated Annual General Fund Revenues to the City of Dublin
Appendix 1 Summary of General Fund Revenue Sources
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Packet Pg. 57 Attachment: 2. Fiscal Analysis dated July 2018 (IKEA Study Session)
Table 1
Summary of Estimated Annual General Fund Revenues to the City of Dublin
IKEA Retail Commercial Center
Dublin, CA 6/27/2018
Revenue Source1
Revenue
Amount
Property Taxes $274,000
Property Tax In-Lieu of MVLF $54,000
Sales Tax $1,536,000
Business License Fees $1,000
Franchise Fees $17,000
Total Estimated Annual General Fund Revenues to the City of Dublin $1,882,000
Figures rounded to thousands
Notes:
1 See Table 7 for calculations
Prepared by: Keyser Marston Associates, Inc.
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Table 2
Program
IKEA Retail Commercial Center
Dublin, CA 6/27/2018
Development Program1 Area / Count
IKEA Department Store
Warehouse 32,331 SF Level 1; Not accessible to general public
Self Serve Furniture Area 66,091 SF Level 1
General Retail 133,684 SF Level 1; includes receiving area, customer service etc.
Furniture Showroom 58,663 SF Level 2
Restaurant 13,616 SF Level 2
Office 34,714 SF Level 2
Subtotal (IKEA)339,099 SF
Adjacent/Other Retail: Food Related
Building A 5,970 SF Sit down restaurant
Building B 8,010 SF Sit down restaurant
Building C
C4 1,540 SF Restaurant
Building D
D2 2,680 SF Restaurant
D3 1,880 SF Restaurant
D4 5,050 SF Restaurant
Subtotal 9,610 SF
Building E
E1 3,520 SF Restaurant
E2 4,020 SF Burger QSR
Subtotal 7,540 SF
Building F 6,020 SF Sit Down Restaurant
Building G
G1 3,500 SF Restaurant
G2 2,460 SF Restaurant
G3 2,520 SF Restaurant
Subtotal 8,480 SF
Building H
H1 2,500 SF Restaurant
H2 1,200 SF Restaurant
H3 5,340 SF Sit down restaurant
Subtotal 9,040 SF
Total Food Related Retail 56,210 SF
Comments
Prepared by: Keyser Marston Associates, Inc.
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Table 2
Program
IKEA Retail Commercial Center
Dublin, CA 6/27/2018
Development Program1 Area / Count Comments
Adjacent/Other Retail: Non-Food Related
Building C
C1 2,260 SF Beauty
C2 3,470 SF Fitness
C3 6,050 SF Beauty
11,780 SF
Building D
D1 23,510 SF Home Goods
Total Non-Food Related Retail 35,290 SF
Total Other Retail 91,500 SF
Total Project Area 430,599 SF
Site Area (Net)27.45 AC
1,195,722 SF
FAR 0.36
Parking
IKEA 1,007 Spaces 2 levels of below grade parking
Retail & Restaurants 568 Spaces Surface Parking
Total Parking 1,575 Spaces
Notes:
1 Source: "Project Description- Retail Commercial Center (SWC Hacienda Drive & Martinelli Way)," 07/18/2017
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Packet Pg. 60 Attachment: 2. Fiscal Analysis dated July 2018 (IKEA Study Session)
Table 3
Estimated Project Employment
IKEA Retail Commercial Center
Dublin, CA 6/27/2018
Commercial Employment
Managerial
Jobs Retail Jobs Total Jobs Area (SF)SF/Employees
IKEA Department Store1 50 300 350 339,099 970
Other Retail2 0 230 230 91,500 400
Total 50 530 580 430,599
Resident Equivalents (Service Population)3 290
Notes:
1 Source: http://proposeddublinca.co; accessed 10/31/2017.
2 Estimates reflect assumed average employment density of 400 square feet per employee.
3 Estimated as per 0.50 per Employee.
Prepared by: Keyser Marston Associates, Inc.
Filename: \\SF-FS2\wp\11\11982\006\Dublin Ikea Fiscal Analysis; Dublin_3 proj demog; 6/27/2018;
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Packet Pg. 61 Attachment: 2. Fiscal Analysis dated July 2018 (IKEA Study Session)
Table 4
Estimated Assessed Value Upon of the Center Completion
IKEA Retail Commercial Center
Dublin, CA 6/27/2018
Item Hard Costs Soft Costs Total
Land Value1 $47,548,320
Development Costs2
IKEA Department Store $50,000,000 $15,000,000 $65,000,000
Other Retail $15,333,333 $4,600,000 $19,933,333
Total Development Costs (including parking)$84,933,333
Total Project Assessed Value (land costs + development costs )$132,481,653
Notes:
1
2
Land Value calculated as the sum of the assessed value of three land parcels (APN 986-0033-005-02, 986-0033-004, 986-
0033-006). Source: Real Quest, Assessed year 2017
Hard costs as per IKEA, as reported in "Fiscal and Economic Impact Analysis of Proposed IKEA in Dublin, California,"
prepared by Economic Planning Systems, Inc., Aug, 22, 2017. Soft costs assumed at 30% of Hard costs.
Prepared by: Keyser Marston Associates, Inc.
Filename: \\SF-FS2\wp\11\11982\006\Dublin Ikea Fiscal Analysis; Dublin_4 AV; 6/27/2018;
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Packet Pg. 62 Attachment: 2. Fiscal Analysis dated July 2018 (IKEA Study Session)
Table 5
Existing Demographic Data - City of Dublin
IKEA Retail Commercial Center
Dublin, CA 6/27/2018
Demographic Measure City of Dublin
Population 1 59,868
Employment 1 20,867
Resident Equivalents 2 70,302
Notes:
1 Source: Esri Total Residential Population forecasts for 2017.
2 Resident Equivalents is calculated as the sum of 100% of the city population and 50% of employment.
Prepared by: Keyser Marston Associates, Inc.
Filename: \\SF-FS2\wp\11\11982\006\Dublin Ikea Fiscal Analysis; Dublin_5 Demogr.; 6/27/2018;
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Packet Pg. 63 Attachment: 2. Fiscal Analysis dated July 2018 (IKEA Study Session)
Table 6
Revenue Source Assumptions
IKEA Retail Commercial Center
Dublin, CA 6/27/2018
General Fund
Property Tax 1%property tax assessment
20.70%City share of property tax allocation Post-ERAF 1
Property Tax In-Lieu of MVLF $2,278,846 property tax based revenues 2004-05 2, 3
$5,553,452,954 2004-05 Dublin gross AV 2, 3
$0.41 per $1,000 in AV growth
Sales and Use Tax 1.00%of taxable sales 4
IKEA Retail Sales Tax $120,000,000 total taxable retail sales 5
Other Retail Sales Tax
Food Related $421 total taxable retail sales per Sq. Ft. 6
56,210 SF total area
$23,664,410 total taxable retail sales
Non-Food Related $421 total taxable retail sales per Sq. Ft. 6
23,510 SF total area (excluding Beauty and Fitness stores)
$9,898,159 total taxable retail sales
Total Other Retail Taxable Sales $33,562,569
Business License Fees $50 per business 4
Franchise Fees $4,047,000 citywide revenues in FY 2017/18 7
70,302 resident equivalents (service population) 8
$57.57 per resident equivalent
Notes:
1
2
3 2004/05 VLF distribution per the California State Controller's Office.
4 Per Dublin Municipal Code.
5
6 This is based on average per square foot taxable sales generated by Persimmon Place in Dublin (includes vacancy).
7 Per City of Dublin Adopted Budget, Fiscal Years 2016-17 and 2017-18.
8 See Table 5
Per Alameda County Auditor-Controller Agency, the Post ERAF property tax allocation factor for the Site (TRA 26-021) is
20.7%.
Per SB 1096, growth of property tax in lieu of VLF is proportional to growth in AV since 2004/05. Before 2004/05, VLF was
distributed in proportion to population.
Total taxable retail sales for IKEA stores in California range from $92.5 million (low) to $142.5 million (high). For this analysis
KMA has assumed total taxable retail sales close to the average (of high and low) at $120 million.
Prepared by: Keyser Marston Associates, Inc.
Filename: \\SF-FS2\wp\11\11982\006\Dublin Ikea Fiscal Analysis; Dublin_6 Rev assumptns; 6/27/2018;
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Packet Pg. 64 Attachment: 2. Fiscal Analysis dated July 2018 (IKEA Study Session)
Table 7
Estimated Annual General Fund Revenues to the City of Dublin
IKEA Retail Commercial Center
Dublin, CA 6/27/2018
Revenue Source
Revenue
Amount % Total
Property Taxes 20.70%share of 1%prop. tax $274,195 14.6%
Property Tax In-Lieu of MVLF $0.41 /$1,000 AV $54,364 2.9%
Sales Tax
Ikea Retail Sales 1.00%of taxable sales $1,200,000 63.8%
Other Retail: Food related 1.00%of taxable sales $236,644 12.6%
Other Retail: Non-Food related 1.00%of taxable sales $98,982 5.3%
Subtotal: Other Retail $335,626 17.8%
Total Sales Tax Generated from IKEA and Other Retail $1,535,626 81.6%
Business License Fees2 $50 per business $1,000 0.1%
Franchise Fees $58 per resident equivalent $16,694 0.9%
Total Estimated Annual General Fund Revenues to the City of Dublin $1,881,878 100.0%
Notes:
1 See Table 6.
2
Estimating Factor 1
Total number of businesses assumed for this analysis is 20. See Table 2 for details.
Prepared by: Keyser Marston Associates, Inc.
Filename: \\SF-FS2\wp\11\11982\006\Dublin Ikea Fiscal Analysis; Dublin_7 Rev; 6/27/2018;
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Packet Pg. 65 Attachment: 2. Fiscal Analysis dated July 2018 (IKEA Study Session)
Appendix 1
Summary of General Fund Revenue Sources
IKEA Retail Commercial Center
Dublin, CA 6/27/2018
Revenue Category
Forecast
City of Dublin
FY 2017-2018
Budget Basis of KMA Projections
Revenues Included in the Analysis
Property Taxes estimated development value, City sh. of 1% tax
Current Secured $30,409,038
Current Unsecured $1,530,000
Supplemental $676,250
Prior Secured Property Tax $306,000
In Lieu Property Tax $5,669,551 MVLF share from SOC
Property Tax Reduction ($1,621,482)
$36,969,357
Sales Tax estimated project sales
Sales and Use Tax $21,572,513
In Lieu Sales Tax -
Sales Tax Reimb.($461,395)
$21,111,118
Franchise Taxes city budget per city wide resident equivalents
Electric – Franchise Tax $510,000
Gas – Franchise Tax $100,000
Garbage – Franchise Tax $2,522,000
Cable – Franchise Tax $915,000
$4,047,000
Business Licenses $157,000 $50 per Business as per Dublin Municipal Code
Revenues Not Included in the Analysis
Property Transfer Tax $500,000
Transient Occupancy Tax $1,000,000
Other Licenses and Permits $40,725
Fines and Penalties $109,932
Development Permits $3,467,766
Development Services $4,344,748
Interest $465,880
Rentals and Leases $1,141,913
Intergovernmental $198,620
Charges for Services $5,728,563
Other Revenue $256,344
Total Revenues $79,538,966
Source: City of Dublin Adopted Budget, Fiscal Years 2016-17 and 2017-18.
Prepared by: Keyser Marston Associates, Inc.
Filename: \\SF-FS2\wp\11\11982\006\Dublin Ikea Fiscal Analysis; Dublin_A-1 budget rev; 6/27/2018;
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