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Neighborhood Outreach Summary <br />Attachment D <br />September 22, 2002 <br />Enot FedExGround, What? Neighbors inquired if the project would go forward without <br />FedEx Ground. <br />Russ indicated that they have been approached by a user about building a 300,000 square <br />foot distribution facility but that alternative would be more imposing on the area than the <br />currently proposed use and would only be pursued if the current subdivision plan is not <br />approved. <br />Staff stated that, although the potential alternative use described by the developer may <br />not require City Council approval, it would be subject to site plan review, which may require a <br />traffic study and subsequent mitigation. It could also be kicked up to the site development <br />subcommission. <br />Russ also pointed out the fact that the site sits next to the Waste Management transfer <br />station, is in an adopted redevelopment area and is zoned for and thereby limited to industrial <br />use. He stated, their objective is to create "win -win" projects with greater benefits to the <br />community than burdens. He also pointed out that FedEx Ground's early commitments have <br />made it possible to finally develop an unproductive site in an undesirable area into a modern <br />"Eco-industrial" business park. In addition to the over $6 million dollars the project will <br />generate for the City in fees and tax increment, FedEx Ground is fronting half of the $400,000+ <br />shortfall to complete the traffic mitigation measures now rather than wait for the traffic <br />congestion to get worse. <br />Tax Increment Revenue Allocation <br />The residents of West San Leandro have to contend with the 880 freeway, Waste <br />Management, the sewage plant, etc. West San Leandro generates revenues for the City, yet the <br />money is often spent elsewhere. <br />Money Should Stay in District 6: Tax increment money will be generated by the proposed <br />project. The neighbors would like a condition of approval to provide that those revenues are <br />reinvested in the form of improvements to District 6. Because the project is in a redevelopment <br />area, 100% of the revenues go back to the redevelopment agency. <br />Russ pointed out that, although it sounds nice to have a 100% bedroom community, from <br />a economic standpoint it is impossible. Business revenues are necessary to support a city and to <br />provide jobs. Russ agreed that the tax increment dollars generated by the project should Qo <br />primarily to improvements in the local community to benefit residents and businesses alike in <br />District 6. He pointed out, however, that the City's budget process of where and how to allocate <br />those funds is not being decided as a result of this project. The approval of the project just gets <br />the "new money" into the City. The next step is to lobby the City to allocate those funds back to <br />S U L L I V A N <br />•cornm uniccrti ons <br />Call Toll Free: 888.SPEA.K.2U Email:Sullivan@SullivanCommunications.com <br />Page 4of5 <br />