Agmt07 Mundie and Associates - Peninsula Park Study 650 Bair Island Rd

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Proposal to the City of Redwood City for Peninsula Park Studies January 23, 2007 Page 5 Task 2b Economic impact of traffic reduction measures We will rely on staff and the applicant to provide a complete list of the traffic-reduction measures that are to be incorporated into the project, along with the traffic consultant's estimate of the reduction in vehicle miles traveled that can be achieved through application of these measures. To complete the analysis, M&A will: ^ Review the written materials provided. ^ Seek to meet with the project sponsor's consultant(s) to gain a thorough understanding of the theories that underlie the proposed measures, expectations for their application, and empirical studies of the results of similar measures elsewhere. ^ Review available literature on the costs of traffic delay, gasoline consumption, air pollution, and other factors that would be affected by incorporation of these measures. ^ Categorize the proposed measures as structural (e.g., physical; built into the design of the project) or operational (e.g., subject to change with changes in residents), and identify the challenges, if any, to maintaining their performance over the life of the project. Task 3 Fiscal Analysis The fiscal impact analysis will focus on ongoing/recurring revenues and costs in the City's General Fund. It will, therefore, not consider revenues and costs in special purpose funds, nor will it con- sider capital costs, nor will it cover changes in revenues and costs to other public agencies, such as the county or the school district. Task 3a Change in City Revenues Mundie & Associates will review the City's operating budget to identify major sources of revenue that would be affected by the development of the Peninsula Park project. As suggested above, we currently anticipate that those sources would include the property tax and, to a lesser degree, sales tax. Some revenue may also be forthcoming from the marina. We will meet with the Finance Director to confirm our hypotheses. We will estimate the increase in property tax generated by the project based on the expected sales prices of the housing units and the expected values of the nonresidential components, including the marina (if it is privately owned). Other revenues will be estimated based on methods appro- priate to each source, with each method to be approved by the Finance Director. If the economic analysis indicates that the traffic reducing measures proposed by the applicant would affect the value of the project initially (and, potentially, over the Longer term), then a second set of property tax projections would be prepared to reflect the lower values. Task 3b Change in City Costs M&A staff will meet with key staff in the police, fire, public works, and parks & recreation depart- ments to review the characteristics of the project and identify cost increases that might result from the development of nearly 800 housing units (some in structures as high as 10 stories), 10,000 square feet of retail space, a community park, a marina, and public access to the waterfront.