2012_0319_Packet - Laserfiche WebLink

Home

A GUIDE TO RETAIL IMPACT STUDIES The following table is from an impact study prepared by Planning Decisions on behalf of the city of Biddeford, Maine, for a proposed development involving multiple large-format stores. In this case, the projected fiscal impact varied depending on whether the city followed thorough on a plan to use tax increment financing ("TIFF") for the project and the effect that would have on the state's contribution to local education costs. Forecasting Additional Impacts As mentioned in the introduction, the economy functions much like an ecosystem, and therefore a comprehensive impact study must go beyond examining retail sales, employment, and tax revenue to adequately assess the impacts of a proposed retail store. Many state and municipal statutes call for a number of additional components to be included in the required study. They are discussed below. Supply of Retail Space and Downtown Vitality The addition of a large-scale retailer can have significant impact on retail vacancies and downtown vitality. The introduction of 75,000 square feet of new retail space into a large market area will likely have little measurable impact. However, that same development in a small market may dramatically reshape the flow of retail traffic in the region. An impact analysis should provide the municipality with an evaluation of the extent and impacts of such a change. For a baseline, the analyst should procure from local officials any current estimates of retail square footage. In addition, local real estate brokers may be able to provide current vacancy and rental rates, as well as a sense of how the impact area compares in those measures to 23