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A GUIDE TO RETAIL IMPACT STUDIES INTRODUCTION States and municipalities have long evaluated the impact that large retail development projects may have on such things as traffic and the environment. Some are now adopting policies that require that the economic and fiscal impact of these developments be considered as well. These policies typically have two key components: study They require that an independent of the economic and fiscal impact of the retail development be conducted by a qualified analyst selected by the municipality and paid for by a fee assessed to the developer. standard They establish a that the project must meet in order to be approved. The policy may say, for example, that the planning board (or city council or other permitting authority) may approve the development only if it concludes, based on the data provided by the study and other evidence submitted, that the project will not have an undue adverse impact on the community or that the benefits of the development will outweigh the costs. A growing number of cities and towns are incorporating these types of policies into their zoning codes. At the state level, Vermont has long required a review of the fiscal impact (i.e., the effect on local government revenue and costs) of large development projects through its Act 250, which became law in 1970. More recently, Maine adopted the Informed Growth Act, which requires a comprehensive economic impact study for proposed retail stores of 75,000 square feet or larger, and stipulates that such a development may be approved only if the town concludes that it would not have an undue adverse impact. The Purpose of this Guidebook This guidebook is designed to give municipal officials and concerned citizens an understanding of how retail impact studies are conducted and what types of data and analysis they provide. Although written in an accessible style, this guide is intended to familiarize readers with the process and terminology of economic impact analysis. As such, it may feel a bit technical at times, but should leave readers better equipped to evaluate and use the findings of these studies. For Maine municipal officials, this guidebook is part of a larger package of resources designed to assist towns in implementing the Informed Growth Act and getting the most out of this new development review tool. These resources are available at www.informedgrowthact.com and include: Answers to Common Questions about Maine's Informed Growth Act A Q&A that describes how the law works and addresses common questions about it. 2