Loading...
HomeMy WebLinkAboutItem 4.1 - 2114 IKEA Study Session Page 1 of 10 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. Page 2 of 10 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) Page 3 of 10 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. Page 4 of 10 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. Page 5 of 10 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 Page 6 of 10 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 Page 7 of 10 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 Page 8 of 10 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 Page 9 of 10 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 Page 10 of 10 ATTACHMENTS: 1. Project Plans 2. Fiscal Analysis dated July 2018 3. Public Comments Received 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 IKEA T72C7 7T 7TT T7C5PMH7 LLLLLLLLLLLLLLLLLLLLA R N O L D R O A D H A C I E N D A D R I V E M A R T I N E L L I W A YI - 5 8 0±7.5% TRUCK RAMP SLOPEM A R T I N E L L I W A Y I K E A P L A C E264846435248363636382421DRIVE THRULOADING SPACES2193147810106.5% TRUCK RAMP420341717129511128282114102551213142810812133319194752542619294RETAINING WALLGREEN SPACESLOPE DOWN TOLOWER LEVELWALL 4:1GREENSPACESIDEWALK GREEN SPACERETAININGWALLAS NEEDEDGREEN SPACESIDEWALKRETAINING WALLAS NEEDEDGREEN SPACEGREEN SPACE 3054823555% RAMPGREENSPACEGREEN SPACE SLOPE DOWN TO LOWER LEVEL WALL 2:1GREENSPACEGREEN SPACE GREEN SPACE SLOPE DOWN TO LOWER LEVEL 2.5:1 TO 4:1GREENSPACESLOPE TOLOWERLEVELGREEN SPACE SLOPE 4:1TO LOWER LEVELGREENSPACESLOPE TOLOWER LEVELGREENSPACEACCESS TO LOWER LEVEL GREEN SPACE SLOPE DOWNTO LOWER LEVEL 2.5:1 TO 4:1 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 COMMENTSDV AERIAL VIEWA5.2DRAWN 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 IKEAAERIAL VIEW1 AERIAL VIEWA5.3DRAWN 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 IKEAAERIAL VIEW1 H A C I E N D A D R I V EI - 5 8 0M A R T I N E L L I W A Y I K E A P L A C E67'172'50'81'62' 1 8 8 '124'156'65'90'80'84' 68'EVEVEVEVEVEV*EV*EVEV*EVEV*EVEV*EVEV*EV EV*EVEVEV*EV*EV*EV*EV*EV*EV*EV*EV*EV*EV*EV*EV*EVEV*EVEVEVEV* EV EV EVEVEVEV EVEVEVEVEVEV*EV*EV*EV*EV*EV*EV*EVEV*EV*EV*EVEVEV*EV*EV*EVEVEV EV*EVEV*EV EVEVEVEVEV*EV EVEVEV EV 9 0 ' EV EVEVEVEVEV EVSITE PLAN A1.1SITE PLAN NOTESSITE LEGENDSITE PLAN AND ADA COMPLIANT PATH OF TRAVELNSEE SHEET A0.2 FOR GENERAL NOTESEVEV*DRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS 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 BUILDING A EXTERIOR ELEVATIONS A4.1NORTH ELEVATION1DRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS 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 IKEAEAST ELEVATION2SOUTH ELEVATION3WEST ELEVATION4ELEVATION NOTESSEE SHEET A0.2 FOR GENERAL NOTES NORTH ELEVATION1EAST ELEVATION2SOUTH ELEVATION3WEST ELEVATION4BUILDING B EXTERIOR ELEVATIONS A4.2ELEVATION NOTESSEE SHEET A0.2 FOR GENERAL NOTESDRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS 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 NORTH ELEVATION1NORTHEAST ELEVATION2EAST ELEVATION3SOUTHEAST ELEVATION4BUILDING C EXTERIOR ELEVATIONS A4.3aELEVATION NOTESSEE SHEET A0.2 FOR GENERAL NOTESDRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS 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 SOUTHWEST ELEVATION1WEST ELEVATION2NORTHWEST ELEVATION3BUILDING C EXTERIOR ELEVATIONS A4.3bELEVATION NOTESSEE SHEET A0.2 FOR GENERAL NOTESDRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS 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 DRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS 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 NORTHEAST ELEVATION1SOUTHEAST ELEVATION2SOUTHWEST ELEVATION3NORTHWEST ELEVATION4BUILDING D EXTERIOR ELEVATIONS A4.4ELEVATION NOTESSEE SHEET A0.2 FOR GENERAL NOTES DRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS 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 NORTH ELEVATION1NORTHEAST ELEVATION2WEST ELEVATION3EAST ELEVATION4BUILDING E-F EXTERIOR ELEVATIONS A4.5aELEVATION NOTESSEE SHEET A0.2 FOR GENERAL NOTESDRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS 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 SOUTH ELEVATION1SOUTHEAST ELEVATION2BUILDING E-F EXTERIOR ELEVATIONS A4.5bELEVATION NOTESSEE SHEET A0.2 FOR GENERAL NOTESNORTHWEST ELEVATION3DRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS 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 NORTH ELEVATION1EAST ELEVATION2SOUTH ELEVATION3WEST ELEVATION4BUILDING G EXTERIOR ELEVATIONS A4.6ELEVATION NOTESSEE SHEET A0.2 FOR GENERAL NOTESDRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS 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 NORTH ELEVATION1EAST ELEVATION2SOUTHEAST ELEVATION3SOUTH ELEVATION4BUILDING H EXTERIOR ELEVATIONS A4.7aELEVATION NOTESSEE SHEET A0.2 FOR GENERAL NOTESDRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS 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 SOUTHWEST ELEVATION1WEST ELEVATION2BUILDING H EXTERIOR ELEVATIONS A4.7bELEVATION NOTESSEE SHEET A0.2 FOR GENERAL NOTESDRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS 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 SITE RENDERINGS A5.4DRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS 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 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 SOUTHWEST345 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 NORTHEAST215NORTH3 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 NORTHEAST21NORTH45 SITE RENDERINGS A5.7DRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS 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 IKEACONCEPTUAL SITE DIAGRAM WITH VIEW LOCATIONS11 - PLAZA AND BUILDING D LOOKING EAST2 - BUILDING D LOOKING WEST2 FINISHE MATERIALS A6.1DRAWN BY:JOB NO.:PA / PM:REMARKSDATEDATEREMARKS 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 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. 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 Keyser Marston Associates, Inc. Page 1 \\SF-FS2\wp\11\11982\006\006-002.docx 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 Keyser Marston Associates, Inc. Page 1 \\SF-FS2\wp\11\11982\006\006-002.docx 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 Keyser Marston Associates, Inc. Page 2 \\SF-FS2\wp\11\11982\006\006-002.docx 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. Keyser Marston Associates, Inc. Page 3 \\SF-FS2\wp\11\11982\006\006-002.docx 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 Keyser Marston Associates, Inc. Page 4 \\SF-FS2\wp\11\11982\006\006-002.docx 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. Keyser Marston Associates, Inc. Page 5 \\SF-FS2\wp\11\11982\006\006-002.docx 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). Keyser Marston Associates, Inc. Page 6 \\SF-FS2\wp\11\11982\006\006-002.docx 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 Keyser Marston Associates, Inc. Page 7 \\SF-FS2\wp\11\11982\006\006-002.docx 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. Keyser Marston Associates, Inc. Page 8 \\SF-FS2\wp\11\11982\006\006-002.docx 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. Keyser Marston Associates, Inc. Page 9 \\SF-FS2\wp\11\11982\006\006-002.docx 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 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. Filename: \\SF-FS2\wp\11\11982\006\Dublin Ikea Fiscal Analysis; Dublin_1; 6/27/2018; Page 10 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. Filename: \\SF-FS2\wp\11\11982\006\Dublin Ikea Fiscal Analysis; Dublin_2 Prg; 6/27/2018; Page 11 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 Prepared by: Keyser Marston Associates, Inc. Filename: \\SF-FS2\wp\11\11982\006\Dublin Ikea Fiscal Analysis; Dublin_2 Prg; 6/27/2018; Page 12 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; Page 13 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; Page 14 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; Page 15 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; Page 16 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; Page 17 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; Page 18 Amy Million From: Mark Kang <jmknycl@gmail.com> Sent: Monday, September 18, 2017 5:04 PM To: Amy Million Subject: IKEA Please do not approve the site plan for Ikea. While this may have been an option fifteen years ago; in today's Dublin with the amount of congestion, from the outlets and sharp increase in population, this is no longer viable. Thank you, Mark Kang Dublin Resident Amv Million From: Ramoncito Firmeza <jaef0730@yahoo.com> Sent: Monday, September 18, 2017 7:21 PM To: Amy Million Subject: Ikea EIR Hi Amy; 1 have looked at the Ikea proposal at Splatter last Saturday. I have also studied the proposal for over a year now. Here are my opposition to Ikea. 1. Costco Livermore and other Costco locations have a 4:1 square footage to parking ratio. There is no way that Ikea will be able to build their warehouse only (without the retail or hotel) to comply with a 4:1 parking ratio. Parking is the biggest issue as part of the problem is Bart patrons might sneak in to their parking spaces and totally make parking horrendous in the area. When Ikea parking get bad then Whole foods Persimmon area will be affected. You MUST enforce 4:1 parking ratio without parking structure eye sore. We already have a lot of eyesores in the 580 corridor. 2 ugly parking structures, and lots of multiunit housings. We are known in California as the Condo capital of the tri valley. 2. Traffic is the biggest concern. Persimmon has tight thoroughfares that puts a lot of danger to pedestrians inside the complex. I don't know how they got away with that. But that is history. Ikea cannot (I mean CANNOT) have the same thoroughfares leading to their parking lots., If you have that traffic will be snarled going in and out. We are also known as the traffic capital of the Bay Area. Thanks to the 580 gridlock. Add that to Ikea consumers, 580 will be a parking lot including Hacienda Blvd. That left turn from Hacienda to Ikea and the freeway exit where cars have to make a left lane changes to make that left turn to Ikea/Persimmon will cause a lot of gridlock and accidents. Compounded with 2000 new homes coming up at Dublin Crossing. Per this article, nationwide we are losing 124 billion dollars from traffic congestion. California has 40 million population that includes school kids and workers. Dublin residents are losing $3,100 annually due to traffic congestion. At 55K Dublin population, we are losing 170 million dollars in traffic congestion. Money that can help us to the ever burgeoning California Taxes. Traffic Congestion Costs Americans $124 Billion A Year Report Says Traffic Congestion Costs Americans $124 Billion A Year, Report Says By Federico Guerrini In 2013 traffic congestion costed Americans $124 billion. In 2030, this number wN ill rise to $186 billion, if not... 3. Ikea is saying 1.8 million of annual sales tax revenues. That is not enough to pay for the extra infrastructure, the cost of monitoring Bart parking intruders, the traffic delays of residents and added public services to service Ikea. We are on the biggest annual budget deficit for the next years. We have residents paying for 3 school bond measures. More housing are on the way from Dublin Crossings. The more housing we put in our city equates to more revenue losses. We need businesses like Class A business that is very appropriate for that Ikea location as it is near Bart. Ikea shoppers will not haul their heavy boxes to Bart or even ride Bart just to shop Ikea. Ikea is wrong for Ikea and has been rejected and should be rejected Jing Firmeza 925-216-3456 7749 Crossridge RD. Dublin Amy Million From: Catherine Kuo <catherinekuo@hotmail.com> Sent: Monday, September 18, 2017 8:35 PM To: Amy Million Subject: NO to IKEA in DUblin Hi Amy, Thank you for accepting input from the community. In our opinion, Dublin cc should never have approved the sale of that parcel of land to Ikea. It might have been better over on the border we share with Livermore, so that potential customer could use the Airway exit. It would be an eyesore, even with the changes they are proposing. If they were willing to use a building to match the scale of Best Buy, and build out something that feels more like Persimmon Place, that would be a much better match for Dublin. But it is IKEA, they never really want to go small, they are always in the news for bigger stores. It would load traffic on Dublin Blvd and Hacienda and make congestion even worse. And as you know, it is already bad. Ikea has parking issues - it's a huge store needs huge parking lot and/or huge multi -level structure. Looking at their proposal, they are reducing parking, which means customers will flood surrounding areas looking for parking. Realistically they can not build a deep enough huge enough underground parking structure for their huge store. If they would be willing to build a store the scale of Best Buy or even Fallon Target, with a center like Persimmon Place, and a color scheme to match the surrounding area, that might work. If you think about it, Target does not feel the need to make it's building a huge Red box with a gigantic white and red Buliseye facing the freeway. Ikea could be normal color, with just the logo giving off color. But no, they want a gigantic Blue and SCREAMING Yellow box. Please do not let them move forward with the building of this hometown city killing store. Thank you. Catherine & William Kuo Dublin residents since 1999 Amy Million From: Jacqui Alexander <jaxon777@att.net> Sent: Monday, September 18, 2017 10:08 PM To: Amy Million Subject: EIR for Ikea Amy, I understand an EIR on Ikea in Dublin is underway. A huge concern is traffic. Dublin keeps building housing yet refuses to enlarge streets to accommodate the increase in traffic. And the problem is there isn't anywhere to expand the roads to. For example, Dublin Blvd. has too many buildings (and now housing) on both sides of the street. As the number of residents increases exponentially, the streets get more and more and more clogged. The Dublin planning commission has repeatedly demonstrated a complete lack of insight and Dublin is the most poorly designed city in the entire bay area. Bad decisions need to STOP. Ikea is just another huge mistake for Dublin's. It's impossible to mitigate the congestion. And it's not just the effect in Dublin streets, You also cannot increase I-580 to handle the increase. I demand to see a fully comprehensive report on the impact of increased traffic projected over the next 1-20 years. The report must take into account projected housing increases from Dublin, Livermore, Pleasanton, San Ramon, Danville, Castro Valley, Tracy, Manteca, Lathrop, all around the San Joaquin valley. The report must also include aggressive and realistic projections for overall traffic increases from travelers/tourists, commuters, and every source of potential road uses. From what I've seen EIR's are more of a formality. But, if you move forward with this project, you're just making Dublin more of a mess than it already is. I don't want to live in a big city full of gridlock. Please stop before you make it worse. Jacqui Alexander Kolb Place, Dubin Amy Million From: Vanessa Sood <vanessasood@gmail.com> Sent: Monday, September 18, 2017 10:44 PM To: Amy Million Subject: Ikea Review Hello Amy, Upon discussion with a neighbor of mine in Dublin I would like to offer the recommendation below. have lived here for 12 years and am very concerned of the traffic I will encounter on everyday activities. I own a home off the Hacienda exit and can't imagine how I will be able to go on ordinary visits to doctor appointments, errands, kid activities and family outings. I already find the 580/680 interchange a mess during the day and weekends and street traffic getting worse. Ikea will not be a local store. It will bring people from all over and would not be a benefit to our community. 1. A review and statistical analysis of current IKEA stores should be conducted to see what affects they have had on their cities - a real life case study would give more accurate results than theory (I.e. Emeryville, Palo Alto): - local vs non -local service/benefit - crime - traffic - pollution - air quality - noise - aesthetics - recreation - animal and wildlife 2. The EIR should also go further than just the immediate site area in reviewing its affect on traffic: - it needs to look at the affects on the hacienda, hopyard, Santa Rita and all Dublin freeway exits - 580/680 interchange - 580/680 traffic impact - a breakdown and distance of traffic a store of this type bring to Dublin, local or non -local traffic details 3. Finally the city of Dublin needs to provide more notice of the IKEA planning commission process, timeline, meetings, dates, etc. - the 300 or 500 foot radius is insufficient ... reside nts/businesses/owners/etc. in a minimum 1 mile radius need to be notified (afterall a 300,000 sqft building is over 500ft x 500ft) - Nextdoor.com was suggested and I myself am not involved in social media, yet within 10 minutes I was able to create a Nextdoor account and figured out how to post upcoming events (in this day in age it would be a huge disservice and mistake if the City of Dublin did not utilize social media to keep its residents informed!) Thank You Vanessa Sood DUBLIN CA resident since 2005. Amy Million From: Minh Thai <minhthai108@yahoo.com> Sent: Monday, September 18, 2017 11:23 PM To: Amy Million Subject: Re: Ikea in Dublin Hi Amy In addition to what I wrote below, to fully understand the traffics generated by Ikea and convince the public, City or Ikea need to public or studies the following: 1) Average Number of car in and out per hour for: - Ikea and its shopping plaza VS. - other equal size commercial development like Persimmon (assuming Persimmon is same size) VS. - equalize office building ? To know this, one needs to estimate the average number of times customers or workers go in and out of the building and their duration in the building 2) potential Annual tax collected by Dublin per year - Ikea and its shopping plaza VS. - other equal size commercial development like Persimmon (assuming Persimmon is same size) VS. - equalize office building ? Regards Minh Thai > On Sep 18, 2017, at 1:20 AM, Minh Thai <minhthai108@yahoo.com> wrote: > Hi Amy > I am writing about the proposed Ikea development. > I wonder how many floor will the Ikea 340,000 SQFT building have ? > Will the building be similar to the other Blue Boxy Ikea buildings ? 1 > If it is, it would violate the City of Dublin Superstore Ordinance Chapter 8.42 SUPERSTORES and other Dublin building codes, isn't it ? > Many Dubliners are concerned about the image Ikea may bring. We all dislike the look of a "large blue boxy building" visible from freeway and the traffics it will bring. > To address these concern, I suggest Ikea and Dublin city do the following: > 1) change the Ikea building architecture and coloring style to make it > looks high end and blend in with the surrounding buildings and land > mark. Instead of one large blue boxy building, build two or three > nicely looking buildings that blend well with surrounding with glass > covered tropical plants or salt water aquarium corridors between the > buildings instead. A salt water aquarium corridor between buildings > will definitely make Ikea Dublin unique and attracts families and > customers > 2) right now, 580 West bound to 680 traffic jams almost very hour and every day including weekend. City needs to build an interchange overpasses for 580 West bound to both South and North 680 before Ikea building is completed (We definitely need 580 West to 680 South first) This will relieve many 580 West bound traffics before the Ikea freeway exits. > 3) City give all the tax revenue from Ikea to DUSD to help build the 2nd HS in East Dublin until the HS is completely build for 2500 students. > 4) Stop all other housing developments until 2nd HS is opened with full facilities to house 1000 students. > 5) At the mean time, City and DUSD declare School overcrowded > Here are some bad looking Walmart and good looking Walmart examples > Bad looking > <imagel.JPG> > Cheap looking > <image2.JPG> > Better looking 2 > <image3.JPG> > Great looking in Washington DC Walmart <image4.JPG> > Great looking in Washington DC Walmart <image5.png> > Regards > Minh Thai 3 Amy Million From: jacksunflower9@gmaiI.com Sent: Wednesday, September 20, 2017 1:57 PM To: Amy Million Subject: IKEA Good afternoon Amy, I am going to be honest, when I first heard 10 years ago that IKEA was coming to dublin I was excited. Driving to emeryville or Pali alto is not my favorite thing. I do not know what happened to that plan but it seemed like residential building is skyrocketing and continues to skyrocket. Dublin does not have the street capacity to handle more. I am not sure how IKEA is still a possibility when our schools are overcrowded and we cannot handle our current population's needs for the things we need to live. Every shopping center, especially with a food store, the parking is a nightmare. I would not have minded IKEA without all the residential building years ago but we are way past that now. I live in dublin and I work in Pleasanton. I timed it. It takes me 8-10 minutes on a good day to get to work. How often does that happen? 4 times a month when I come home from a late client at 9 pm, otherwise it can range from 15-45 minutes and some of my longer commute times are not even during rush hour. You need to consider the impact, the true impact of what IKEA will do to dublin's streets, safety, and even what it will do for our population. Thanks Jackie Sent from my iPhone i Amy Million From: Sent: To: Subject: 4; DUBLIN rprc-,; 7Hk NEW AMERICAN BACKYARD Jeff Baker Friday, December 08, 2017 11:08 AM Amy Million FW: IKEA in Dublin Jeff Baker Assistant Community Development Director City of Dublin 100 Civic Plaza, Dublin, CA 94568 (925) 833-6610 1 (925) 833-6628 FAX jeff.baker(a clublin.ca.gov I www.dublin.ca.gov Mission Statement: The City of Dublin promotes and supports a high quality of life, ensures a safe and secure environment, and fosters new opportunities. From: Kris Bethea[ma iIto: kristina.betheatcbgmail.com] Sent: Thursday, October 20, 2016 5:47 PM To: David Haubert; Abe Gupta; Doreen Wehrenberg; Kevin Hart; Don Biddle; Chris Foss; Planning Commission; DublinO)patch.com; letters(&bayareanewsgroup. com; editmaiMcompuserve.com; DoreenforDublin(dgmail.com; melissastrahCabgmail.com; ballesteros.dublin20l6(aIcimail.com; agoel@arungoel.net Subject: IKEA in Dublin Dear Mayor, Vice Mayor, City Manager, members of the City Council and members of the Press, I'm writing in regards to the land that has been bought by IKEA. We'd like to see a proposed plan to the community of exactly what kind of structure will be built on this land, and how will we (the residents of Dublin) benefit from it. Overall, the idea of building an IKEA warehouse sounds like a horrible choice for the residents in our area. My family agrees that it's an absolute mismatch of our needs and wants as residents, and it will negatively affect our lives with increased traffic, lack of parking spaces possible safety issues and environmental consequences, etc. There are many other convenient services that would be beneficial to our community: from communal spaces for activities or a place where residents (tech professionals, students, etc) could enjoy fun activities, food and drinks in an arcade restaurant like Dave and Busters. The space could also be utilized for a shopping plaza that could host local businesses and beloved shops or franchises. There are many options that would be better for us than an IKEA warehouse. I would like to hear what your plans are to do with this place? What are your stances? We intend to attend the City Council meeting, on November 1st and we'll be asking these questions, because we believe that residents need to be heard in this matter. Thank you for taking the time to read this email, Kristina Amy Million From: Christopher Kranich <chriskranich@gmail.com> Sent: Wednesday, December 06, 2017 8:09 PM To: Amy Million Subject: IKEA Retail Center Proposal Comments There are many residents that are just starting out and need affordable and stylish home decor. This store, coupled with the other retailers on the site, will capture a lot of tax revenue from the region which can be used to maintain and grow the services locally. The developer must ensure that all increases in traffic caused by this project will be sufficiently mitigated. If this is done, than I will have no issues with traffic. I like the design of this project because it creates a lot of opportunities for people to easily walk from one store on the site to another. The fact that most of the parking will be under the store greatly reduces the percentage of the site that is paved over. The location adjacent to the 580/Hacienda interchange means that people visiting this store will only be on local roads for a short amount of time before pulling in to a parking space. Overall I think this is a great project for the City of Dublin and I urge the Planning Commission and the City Council to approve it. Christopher Kranich • Dublin, California • chriskranich(aDamail.com Amy Million From: Richard Schechter <richardrss@comcast.net> Sent: Wednesday, December 06, 2017 8:53 PM To: Amy Million Subject: IKEA Hi Amy, Thanks for holding the IKEA meeting tonight. As mentioned at the meeting, I feel the traffic study should be expanded to consider the potential impact of traffic during the Christmas shopping season. I am not suggesting that the facility be designed around this impact, but it should be considered when the project approval is voted on. I fear that as in the case of the Livermore factory outlets, pre -Christmas traffic congestion around the 580 exits could be horrific. Also, I suggest that the results of the traffic study be posted on line when finalized. Amy Million From: Jennifer <jenniferyu1@gmail.com> Sent: Friday, March 16, 2018 6:02 PM To: Amy Million Subject: No or Pickup -Only Store re Ikea Hi Amy, The traffic around Dublin is already horrible. Please don't ruin the city with a monstrous blue Ikea building. If Ikea must be built, please remember: Ikea has a small pickup -only place in Canada (no showroom and huge garage) which is reasonable for Dublin. Thank you, Jennifer Lin Dublin resident and US Citizen March 151h, 2018 Ms. Amy Million City of Dublin Community Development Department 100 Civic Plaza RECEIVED Dublin, CA 94568 MAR 1,9 2018 Re IKEA SEIR DUBLIN PLANNING Dear Ms. Million, I do not support the current IKEA proposal. Such a large retail/warehouse at the center of our city will negatively impact quality of life in Dublin, create enormous traffic problems at the center of our city, hurt smaller business growth, impact access to life -safety services, as well as be an eye -sore dominating the image of our city. Herein are thoughts regarding the proposed project based on the SEIR, as well as the recent proposal presentation to the community by IKEA staff and its consultants. Review & response to the Project Objectives, as outlined in the SEIR: 1) "Positively contribute to the local economy through new capital investment, creation of new employment opportunities, expansion of the tax base, and increased retail offerings". Counter argument: a) Capital investment is IKEA's & IKEA's alone ... all of the investments being made are designed to benefit IKEA & its ability to make money from a new store. This includes all the roadway "improvements" IKEA is touting..... which are technically not improvements if they are required to resolve problems created solely by the proposed IKEA store. Any other development would also provide fees, sidewalks, signage, landscaping .... so honestly, this is not a capital investment in Dublin... it is actually a problem -generator for Dublin. b) New employment opportunities come with any new development ..the question the city should be asking is: could other options create even more jobs? ...& maybe jobs that generate more revenue for our city? The answer is YES! Let's understand the difference between the IKEA model and say that of a corporate HQ model. At IKEA there are a few managers & coordinators, staff sprinkled at key locations on the sales floor, display staff, warehouse staff, checkout -staff, restaurant staff, and delivery/dock staff. Only a portion of the jobs are high income, most are hourly. Data re the current proposal (via the East Bay Times) indicates the project would employ a mere 350 people (presumably the majority of which would be hourly). A 339,OOOsf facility populated by 350 employees yields = roughly 1000 sq. ft. per employee. That is a very very very inefficient number. In North America the average corporate employee occupies closer to 150 sq.ft. In other words, a corporate office facility on this site, of the same 339,000 sq ft,...would provide 2,260jobs! That's roughly a 650% increase in jobs for one site in Dublin!! So you can see the incredible deficit of jobs IKEA brings. & this calculation comparison only covers the IKEA store..if including the other proposed project retail areas (+/-90,OOOsq ft).... the data would add another+/- 700 jobs!! A corporate center or office bldg. on this site would yield roughly 3000 new jobs in Dublin! That is huge! Now imagine what 3000 corporate employees do during their lunch hour &/or break, &/or after work? They dine, they shop...near where they work. Retail areas such as Persimmon Place &/or Hacienda Crossing... would benefit immensely. These corporate employees wouldn't need to drive to retail, they would simply walk a block or so & do what consumers do: shop.. adding to Dublin's tax base. & Many of these hypothetical employees would commute to work via BART, slashing the vehicular impact an IKEA store will bring (as denoted in the SEIR: significant & unavoidable)! This site has the potential to offer 8 times the number ofjobs..with far fewer negative/"unavoidable" congestion problems. 350 employees is not a benefit, it's a detractor. c) Expansion of the tax base will happen with whatever entity occupies this site. As suggested in (b)... locating an office or corporate facility of similar size here would increase tax revenues both corporate, income, and retail. & don't lose site of the inwardly focused cluster of "lifestyle retail -restaurant" that IKEA has proposed on the site..to the tune of 93,OOOsf. The site design divides the consumer group into IKEA visitors & other ... the separate parking options makes this division even more pronounced. Its highly likely these smaller retail shops w/their low visibility may remain empty as IKEA foot -traffic is not being driven to them but rather restricted by the separate parking options. If these shops remain empty... it would be a financial loss for IKEA, and... tax deductible. d) "Increase retail offering"... is an interesting statement. Increase the offering ... um..because no one in the Dublin -Pleasanton area has access to an IKEA? Last I checked the east bay has access to 2 IKEAs: Emeryville & Palo Alto. Not clear why IKEA thinks the bay area needs a third location. If the central valley needs an IKEA, then IKEA should build one in Stockton. 2) "Reinforce Dublin's status as a regional retail node by increasing commercial retail and service offerings within an established regional and highway -oriented commercial area." Counter Argument: a) IKEA is big box destination retail. It generates vehicular visits, not pedestrian foot traffic. Dublin is interested in creating pedestrian -friendly shopping areas akin to downtown Pleasanton and Danville. Dublin does not see itself as a 580 retail strip, & neither does anyone in the area. Dublin is a suburban bedroom community, with retail... not a highway retail node. b) The area's current "retail -nodes" have been established by the creation of 2 malls in Pleasanton... both of which have multiple anchor stores (IKEA is not this) and a plethora of quality retail shops organized in a pedestrian friendly concept. The Outlet stores, located south of 580 & east of El Charro generate an enormous amount of traffic during certain holiday periods, often bringing roadways in the area to a total standstill. No one appreciates the mess this creates. Status you say? If traffic and noise is IKEA's idea of status, then no thank you. Dublin doesn't want or need THAT kind of status. 3) "Develop a new regional -serving retail use closer to 1-580, Dublin Boulevard, and public transit options in order to better serve the retail demands of the Trade Area, while also minimizing the need for infrastructure improvements. " Counter Argument: a) See #2 re 580. IKEA negatively impacts the areas vehicular roadways (all of them, even in Pleasanton). It creates un-mitigatable traffic issues (see SEIR)...issues that will never go away & cannot be resolved. Why would anyone think this is a good idea? & to top it off, the siting of the IKEA building turns its back to BART ... it makes no real meaningful connection to BART. Why take a prime piece of real estate, one that is situated to directly benefit from a major..major public transportation asset, & then turn your back on V! This site was intended to take cars off the road, not add so many that it creates un-mitigatable issues. b) See #1d re serving retail demands of the Trade Area. Again, last I checked Dublin/Pleasanton had access to an IKEA. If IKEA needs a site to meet the demands of the central valley, then they should put one in the central valley to meet demand there ... THERE. c) IKEA is a major infrastructure impact -or, The need, as noted in the SEIR, to resolve a massive number or roadway issues (all the way to Valley & Dougherty)... created solely by this IKEA proposal is untenable... never mind the potential for this myriad of traffic issues to create a life -safety services/access problem. What happens when traffic is so back that Dublin services is/are unable to get to an emergency? IKEA's proposal completely fails this project objective. 4) "Promote economic growth in accordance with the goals and policies set forth in the City of Dublin General Plan and Eastern Dublin Specific Plan." Counter Argument: a) See item 1. The City of Dublin would be far better served by the development of a Corporate Commercial complex at this site. Such an option would actually work seamlessly as a bridge between the BART transportation node and retail in this area, while encouraging pedestrian movement rather than stymieing it. b) Small businesses will be hurt when IKEA draws retail -visits away, especially from downtown Dublin. Small business is the heart of a city, Dublin should do everything it can to support small business growth, not hurt it. Dublin should be driving visitors to its downtown, not impeding access across Dublin. 5) "Facilitate the reuse of a former, underutilized portion of Camp Parks that is zoned for commercial use and is currently in the Dublin City Limits." a) Any development at this site would do this ... it goes without saying. Why this is listed as an objective is well... inexplicable. 6) "Develop smaller retail, or restaurant uses that complement the major anchor and provide consumers with additional competitive and convenient options." a) IKEA is a destination -big -box -retail. It is not an anchor store. To be an anchor store requires that the store be tied -in with the other retailers, that they share a common parking zone with multiple access points into the main pedestrian thoroughfare thru which ALL the stores are accessed. IKEA site design forces drivers to decide as they cross the property line whether they are going to IKEA (& parking in their under -building parking structure) or going to the smaller stores (& looking for a surface parking spot). The decision as to which retailer to visit is made at the curb of the site...not within the "mall". Once in IKEA... shoppers do not have opportunities to visually nor physically connect with other stores until after they fully exit IKEA. IKEA's plan is not in any way designed to encourage any level of pedestrian retail engagement... unless it is constrained within its very own store. b) The proposed smaller retail buildings, in their planning, layout, material finishes, and design ... do not in any way seem a part of a larger IKEA development. If anything they seem dis-engaged, unfamiliar, almost foreign... as if an after -thought. Why would any retail group be enticed to this site? The smaller retail is tucked into the middle of the site, bounded by a roadway & sea of parking, with the service/back-of-house component turned outward... creating low visibility. 7) "Design a site plan to minimize overall access and circulation conflicts, and that is also accessible to the Dublin/Pleasanton BART station." Counter Argument: a) See # 3a. The siting of the IKEA project makes no effort to truly engage, nor connect with BART. The proposal orients the back of the large warehouse building west, towards BART. & locates its delivery dock to the west, again towards BART. The plan offers no meaningful pedestrian link to/from BART. b) So what exactly is a BART-rider buying at IKEA? Has IKEA really thought about how pedestrians get between BART & IKEA carrying their newly purchased goods? That bike path will really help a shopper carry that chair to BART! Its clear that IKEA hasn't rationalized the potential of this site & what BART offers..ie where is the shuttle between IKEA & BART? Why is the large -items loading area adjacent to where BART pedestrians will be coming on site? It is clear that the proposed plan could be anywhere in CA. 8) "Complete site remediation efforts in order to protect public health, safety, and welfare, and prevent future environmental degradation." Counter Argument: a) What environmental degradation? How does a large blue & yellow box prevent degradation? How is an empty field an issue for public health & safety? I think the environment would find IKEA's proposal a degradation of its own kind: 1) new construction, that destroys habitats of any sort, is not...not environmentally sensitive, & 2) all construction brings environmental issues & toxins to a site. New construction is never environmentally friendly. It can never be truly "Green". b) Dublin's public health & safety is impacted by this proposal. 1) Traffic generated by this site, especially cars waiting in turn lanes & waiting on on/off ramps, generate a lot of exhaust. Exhaust levels increase at intersections, particularly large intersections & crowded ones. From an air -quality pov... the traffic IKEA will generate will negatively impact the air quality in this area, & that is a serious health concern knowing that there are pedestrian areas and residences nearby. 2) the level of traffic generated by IKEA, per the SEIR, will negatively impact numerous intersections & roadways surrounding IKEA. During an emergency it is likely that emergency services may not be able to quickly access this or neighboring locations due to traffic. This poses a serious risk to any Dubliner, or visitor in need of emergency services. 3) as noted by the public, during the February presentation to the community by IKEA staff & consultants, pedestrian traffic crossing Hacienda, Martinelli, perhaps even Arnold, will be extremely dangerous because of the length of the pedestrian crossing & the number of vehicles coming off of 580 & heading to IKEA. The only real solution to avert a pedestrian tragedy is to divert IKEA bound traffic, either via an overpass or an underground tunnel. 9) "Improve the overall visual appearance of the area by developing new commercial uses that employ high quality contemporary architecture and landscaping." Counter Argument: a) There is nothing visually appealing about a massive Blue & Yellow Warehouse. The design of the project does not in any way visually relate to the community, nor Dublin at large. We don't have multi -story blue/yellow boxes in our city. No other large retailer has built anything akin to this in Dublin. & calling it high quality contemporary architecture is insulting to those who design & develop high quality contemporary architecture. b) At the February presentation I asked a very pointed question of IKEA's staff & consultants: Does IKEA feel the Blue & Yellow building is part of their brand image/logo? The answer given was simply: "yes". Note, no other retailer in Dublin has a multi -story, hundred -foot wide brand image/logo. IKEA's massive blue & yellow box is nothing other than advertising for its company... it is truly a massive Bill -Board. I also asked Ms. Million: Does the City of Dublin allow Bill -Boards? Ms Million's reply was mixed, not certain at first, but felt & offered that "no" the city does not. I presume the city has requirements for signage in the city, relative to its size/height/location? In the interest of not opening a Pandora's box, this might be a good opportunity for the city to enforce a no Bill -Board policy. A building design more in -tune with the architecture of Dublin is required here. Please request IKEA come back with something more suitable to our city, something sized to eliminate the un- mitigatable impacts created by this proposal. Lastly, relative to the traffic issues created by this proposal, issues the SEIR admits are essentially un- mitigatable... please consider that this proposed IKEA is larger the one in Emeryville and more so by the inclusion of the additional retail. There is a freeway exchange proximate to the Emeryville store ... similar in some ways to 580/680 as it is often congested & backed up. But there are a few key differences which upon review question the rationale for placing this size IKEA in Dublin: Nearby offramp/onramp access to IKEA/Emeryville is limited to 1. The impact from freeway traffic comes primarily from one exit ... & yet the length... pure length of Emeryville roads between that exit & the entrance to IKEA's parking area is more than 2 times the distance than that offered at the Dublin site. That's more than double the distance to address vehicular stacking & waiting. Dublin simply doesn't have the roadway length to address more cars than Emeryville. & The Emeryville site design has a far longer driveway before a driver has to decide where to turn (garage or surface parking). The Dublin site plan does not. The proposed Dublin IKEA design has failure written all over it: not enough roadway off of the freeway to address stacking, too short of an on -site entrance lane before cars have to split (garage or surface pkg), delivery trucks are utilizing the same roadways as passenger vehicles, risks to pedestrian traffic crossing Martinelli & Hacienda, eventual parking overflow into Persimmon Place (during perhaps holiday hours/weekends) negatively impacting retailers & driving Dublin residents away, dangers associated with pedestrians crossing the on -site drive lane/loop to access smaller retail... further slowing traffic. If the SEIR has to request signal upgrades at Tassajara & at Dougherty ... to address traffic generated by IKEA, then the impact of this one project extends beyond a city block, it impacts broad area of our city: its core. IKEA is a big blue Billboard that brings massive traffic to the core of our city, traffic that cannot be resolved. It does little to take advantage of the benefit BART offers this area. Its low job numbers hurt Dublin rather than help. And it will impact the health & safety of our city and its residents. This is not a fit for Dublin. This project is not who we are. This site has so.much more potential. Our city deserves something better, something that doesn't try to impose itself on our city, that doesn't try to change us or force us to deal -with -it, ...rather something we can be proud of, a place that is more Dublin. Sincerely, Gabrielle Blackman 12+yr Dublin resident Amy Million From: Ed Kokko <kokko1 @comcast.net> Sent: Friday, March 16, 2018 10:20 PM To: Amy Million Subject: No IKEA in Dublin Dear Mrs Million, I understand that you, as the principal planner for the city of Dublin, are collecting comments from residents regarding the proposed IKEA store near Hacienda crossing. I have been a resident of Dublin since 2002 and would like to pass along my objection to the proposal. There are several reasons why I am choosing to speak up at this point in time; I'll just highlight a few in this email. In watching the city of Dublin and the surrounding cities grow substantially over the last number of years I've observed that the amount of traffic has also increased. In fact, I've had to increase the time I allow for commuting from Dublin to Livermore and back (a counter commute) by at least 25% just in the last year to account for the more frequent traffic jams on the 580. Even on the weekend, westbound on 580 between Fallon road and the 680 interchange has become horrible and on occasion worse than during the week. Much of this I attribute to the single lane flowing south on the 680 and vehicles merging on from the Hacienda and Tassajara exits. This section of road passes directly by the proposed IKEA site. Any additional traffic, let alone traffic from a mega -big box store drawing shoppers from all over will grind the freeway as well as adjacent streets such as Dublin Blvd to a halt. I hope this is not discounted as a minor issue in the process of evaluating this proposal. In addition, I am disappointed that Dublin is focused on attracting big box stores to our town as opposed to focusing on bringing in more small businesses. I feel that the character of the town is being somewhat diminished by the addition of the numerous large housing and commercial developments within the past several years. I would love to see more focus on developing a downtown Dublin similar to that of surrounding towns (Danville, Pleasanton, Livermore) where people want to come to hang out as opposed to just shop at a mall or big box store and then drive home. While these aren't all the reasons I object to the IKEA proposal, it hopefully gives you some sense of where I'm coming from. Thank you again for your time and have a good holiday weekend. Respectfully, Ed Kokko Sent from my Phone Amy Million From: Dave Rodriguez <rocknrod57@att.net> Sent: Sunday, March 18, 2018 4:54 AM To: Amy Million Subject: IKEA To whom it may concern, I've lived here in Dublin for over 2S years and seen it change into a place that's become overcrowded, poorly planned, and a place, frankly, many people would've never moved here knowing it would end up this way. I honestly think we've gone down this path too 'long to ever change for much good to happen. Considering we've needed another high school for years and keep having to pay more and more taxes and still without having any idea when a new one will be built or where.? Constant building without regard for traffic congestion, quality of life, and overcrowding everywhere around you is becoming unbearable. With more more projects in the pipeline it is stifling to think about. Projects being built on Regional Avenue, Camp Parks, Dublin Blvd where the old Chevy dealership used to be, and of course we can't forget !KEA!!! Will only close us in further. What does all the city planners and officials think is going to happen when all -these people hit the streets to shop or drive or pick there kids up at school clear across o little town?it can easily take 20 to 25 minutesto get our I L from East Dublin to the only high school in town! You -tell me what's wrong with this picture?? And you wonder why we don't have a pedestrian friendly downtown like 1 Pleasanton, Livermore, or Walnut Creek. We need to hold the people representing this city accountable before more blunders like these occur. Create a building moratorium and STOP IKEM! FYI: I have never written anything like this before. It's probably long over due. z Amy Million From: Moslem Ladoni <moslemladoni@gmail.com> Sent: Sunday, March 18, 2018 6:00 PM To: Amy Million Subject: IKEA project Hi Amy; I am a resident of Dublin and am writing this email to voice my disagreement with the proposed IKEA opening in Dublin. I believe that the highways around the proposed spot are absolutely not ready for the traffic that IKEA will create. Highway 580 is already quite crowded around the 680 and San Ramon Rd ramps and we always have a hard time navigating through. An IKEA store will make this situation even worse given the number of daily costumers they have. An IKEA store will have a negative impact of the life of Tri-valley residents. Thank you, Mosi Ladoni Resident of Dublin, CA. Honorable Mayor, Council Members and Planning Commissioners, Last week there was reportage of a letter from our neighbors to the south worried about traffic that might be associated with an IKEA in our community. Of course, traffic is the perennial bugaboo, often voiced by persons driving the boulevards and contributing to the congestion. But in regard to IKEA, 1 would posit that the coming Costco in Pleasanton might be more of a problem. Not that I am worried about Costco. I have never seen a backup on Canyons Parkway in Livermore nor on Fosteria Way in Danville. Costco in Pleasanton will be okay. IKEA will be okay. The sky will not fall. But to assuage the minds of those with such concerns, I would suggest three simple measures to alleviate possible problems: 1) Have IKEA open at 1000am, after morning rush hour. 2) Install three left turn lanes leading from the freeway and have Dublin Boulevard become a six lane thoroughfare to handle customers coming from our own community. 3) Let IKEA be primarily a furniture, mattresses, lamps and home goods store that will not necessarily have hordes of holiday shoppers looking for something to wrap up in a bow as might be found down the road at the Outlet Mall. Since these three things have already been accomplished, I don't see the problem. Please give this project your unanimous vote. But, with this caveat: Give careful scrutiny to signs. The golden arches are immediately identified with McDonalds. Costco has a plain red stripe running around their buildings. And IKEA has blue and yellow structures the size of an aircraft carrier. But in the age of smart phones, even a moderately intelligent seven year -old can find out how to get to any store. HUGE signs are not needed. And there is no need to have a banner showing a sofa on an IKEA location any more than Honda dealers need to display a picture of a car. I know that this deal about signs in Dublin is a preoccupation of mine, but I honestly believe that local ordinances have helped our city gain a little class since the days when King Kong ruled the tops of buildings. And shoppers continue to flock to stores with good merchandise and reasonable prices. I hope to have an opportunity to address you when this item comes up on your agendas. Please keep me apprised of those dates. RECEIVED Bruce Fiedler APR 3 0 2010 DUBLIN" PLANNING