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7.A. - Page 7 The City Council could direct staff to work with the Developer to make additional changes to the Project and/or the DDA. FISCAL IMPACT Approval of the Disposition and Development Agreement is expected to have a positive impact on the City's revenues primarily due the increase in assessed valuation of real property as a result of the land sale and ensuing development. The total increase in assessed valuation is projected to be around $155 million of which $15 million is attributable to the increased assessed valuation of the land while the balance is attributable to the estimated cost of the building. Inasmuch as this property is located within the territory of the former Redevelopment Agency (the first amendment area) the projected property taxes that the City's general fund should receive upon build out is less than straightforward to calculate due to the complexities in how property tax revenues from former Redevelopment Agencies are distributed. Our best estimate at this point is that the City general fund should receive about $350,000 annually (see Figure 1 below) at build out while the City's parking fund, which receives a small share of property taxes in the Downtown area should receive around $10,000 annually. Should the project eventually be assessed at a value lower than expected the property tax revenue received by the City will drop commensurately. Figure 1: City Share of New Development Using Adjusted Percent Total Value $150,000,000 Total Property Taxes $1,500,000 Less: Pass Through $287,188 Net Property Tax $1,212,812 City % share of Property Tax — Net of Pass Through 29% City — New Property Taxes $353,670 The aforementioned approach is consistent with the requirements set forth in the Redevelopment Property Tax Trust Fund (RPTTF) as established in the Redevelopment Agency dissolution process. The City's general fund will also likely receive other revenues such as business license taxes, utility users' taxes, and sales tax as a result of this development. A reasonable estimate of these taxes is difficult to estimate at this point without knowing who will occupy this project. ENVIRONMENTAL REVIEW In 2010, an Environmental Impact Report (State Clearinghouse #2006052027) was prepared to assess potential impacts resulting from the implementation of the Downtown Precise Plan. The Downtown Precise Plan established new land use, development, and urban design regulations for the 183-acre Plan area for a 20-year planning period, including the potential for up to 500,000 square feet of new office space and 100,000 square feet of new retail/restaurant space. The program