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the fiscal and tax benefits associated with open space III taxpayers may wish to identify the fiscal impacts associated with the preservation of specific parcels of land. For in 1998 the Aquidneck Island Land Trust (AIL T) broke red an agreement with public and partners to preserve the Perry Farm, the largest remaining undeveloped in Middletown, The was paid approximately $765,000 for the 82-acre 25 acres of which will now be farmed the Newport Vineyards and while the remaining 55+ acres are for use as part of a proposed National Golf Course (Sweeney 1998). As a result of the preservation agreement, development rights on all portions of the property will be extinguished. Although Middletown tax revenues were not used to purchase the property, the preservation of this land will have important fIscal consequences for Middletown and its taxpayers. This repOli presents the results of a detailed fiscal impact analysis, designed to assess the fiscal impact of this effort to preserve a significant parcel of open space in Middletown. To assess the fiscal impact of the AIL T preservation agreement, this report compares the current condition of Middletown's public revenues and expenses to that which would occur if the Farm were to be developed as residential housing-the almost certain outcome in the absence of the preservation agreement. It is assumed that the property would be developed as a typical subdivision, similar to other recent Middletown housing developments such as East Meadow, West Meadow and Kesson Fam1. As is the case with existing subdivisions, the hypothetical "PeITY subdivision" would have numerous impacts on public revenues and expenses. Ultimately, these impacts would result in a change in the propeliy taxes paid by resident each year to the Town of Middletown. This repOli considers all primary fiscal impacts over a 30-year time horizon, using state-of-the-ari economic and fiscal impact models. The result of this analysis shows that over the next 30 years, residential development of the PelTY property would cost Middletown taxpayers between $920,680 and $2,679,775 net discounted 1998 dollars), even after one considers all the tax and other revenues generated new residential units. In total non-discounted dollars, CIllTent Middletown taxpayers would pay as much as 10.602 in additional taxes over the next 30 years, if a 49-house subdivision were to be built on PelTY Fam1. Mechanics of a Fiscal Impact Analysis: A Brief Overview Fiscal Impact Methodologies Fiscal Impact analysis compares the public costs and revenues generated by residential or commercial development (Burchell et al. 1994). Although fiscal impacts may be projected for any jurisdiction, the following analysis assesses public costs and revenues at the community (town) level. Various fiscal impact methods exist, each suited to specific types of development and sets of community characteristics. Despite differences in the exact methods used to forecast future costs and benefits of residential development, all fIscal impact methods share four basic steps (Burchell et al. 1994): I] Detennine the number of housing units and increase in population generated by the residential growth, 4