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Economic Impact Review - California in On September 2, 2011, the California Legislature passed the following bill, which requires cities and counties to have an economic impact analysis prepared before deciding whether to approve an application to develop a large superstore. Governor Jerry Brown has until October 9, 2011, to sign or veto the bill. The legislation defines a superstore as a retail store of at least 90,000 square feet that devotes 10 percent or more of its space to groceries. It will affect Walmart and Target, both of which operate large stores that include groceries. Under the law, the city or county considering the superstore application must hire a qualified consultant to conduct an economic impact study. The cost of the study is paid by a fee levied on the applicant. The study must assess a range of impacts enumerated in the law, including: • the extent to which the proposed superstore retailer will capture a share of retail sales in the market area • how the construction and operation of the proposed superstore will affect the supply and demand for retail space in the market area • how the construction and operation of the proposed superstore will affect employment in the market area, including an analysis of whether the proposed superstore will result in a net increase or decrease in employment in the market area • the effect on wages and benefits of employees of other retail businesses, and community income levels in the market area • the costs of public services and public facilities resulting from the construction and operation of the proposed superstore retailer and the incidence of those costs • the effect that the construction and operation of the proposed superstore retailer will have on retail operations, including grocery or retail shopping centers, in the same market area • the effect that the construction and operation of the proposed superstore will have on average total vehicle miles traveled by retail customers in the same market area • the potential for long-term vacancy of the property on which the superstore is proposed in the event that the business vacates the premises The "market area" is defined as an area around the store large enough to support its operation, but which may not extend further than 25 miles from the store. After the study is complete, the city or county must invite public comment on the study and the application at one of its meetings.