Talbot Preservation Alliance
210 Marlboro Avenue, Suite 31-208
Easton, MD 21601
(410) 763-8013 Fax (410) 763-9611
Position Paper
Responses to Kehoe Memorandum of October 5, 1999
November 1, 1999
1.0 COMPREHENSIVE
PLANS SHALL PROVIDE FOR "THE COORDINATED, ADJUSTEQ
AND HARMONIOUS DEVELOPMENT OF THE JURISDICTION, AND ITS ENVIRONS
WHICH WILL, IN ACCORDANCE WITH PRESENT AND FUTURE NEEDS, BEST
PROMOTE HEALTH, CONVENIENCE, PROSPERITY, AND GENERAL WELFARE."
1.1 Q. Is additional big box retailing necessary for the
town’s present and future needs?
TPA Response:
· No, Exhibits A, B, & C show that Easton
is more than adequately served in virtually all major big box categories.
· Easton's retail space in shopping centers
only, per capita, is presently more than 3 times the industry average
of 20 square feet/capita! See Exhibit L
· The 700,000 square feet of
new proposed shopping center space in Easton - the additional space now
being considered - would add over 20 square feet of retail space for every
person in the county!
1.2 Q. How should the Commission and Council make the
determination of what our citizens need in this regard? Who defines our
"needs?" Residents? How should their views be determined?
TPA Response:
Based on Exhibits A, B, & C, it is clear that our needs are more
than adequately served at present.
· The Mayor and Town Council should make this
decision based on the "Visioning Process", the Comprehensive
Plan, and input from town and county residents.
· The existing retail base in Easton can not
survive solely on the town populace as there is insufficient population
density. The county as a whole is inevitably involved.
· The existing operating retailers in Easton
should be consulted in this process.
· "There is enough commercial development
in Easton at the present time. Future commercial development should be
encouraged to locate in the Town Center or in the vacancies within one
of the several existing shopping centers. People did not want any more
shopping centers, but felt there is room in Easton for additional commercial
uses of many types from 'big box' to 'Mom & Pop' type retail"
(page 22 Easton Comprehensive Plan).
· "The Planning and Zoning Commission
should evaluate all development regulations and encourage the stabilization
of and strengthening of Easton's Town Center as a retail shopping area..."
(page 98 Easton Comprehensive Plan).
· The views of residents can be obtained through
public hearings.
1.3 Q. When members of the public express concern over additional big box
retailing are those concerns primarily directed to the existence of additional
big box retailing?
TPA Response:
· Yes, public input is directed at the impact
that additional big box retailing will have on the local
economy, traffic, public safety, the environment and the overall "quality
of life".
1.4 Q. Can design and landscaping standards answer some of the concerns
of the public?
TPA Response:
Yes, some of the concerns, but the major issues are how much additional
big box retailing can this market sustain and what would be its impact
on our community.
1.5 Q. We have been told that Easton is a regional marketing center for
the Mid-Shore. Is this a trend which we wish to encourage? Discourage?
TPA Response:
While our role as a commercial center is important, our function as a
gateway to other parts of the county cannot he overstated. People must
go through Easton to get to these other areas. In addition, the land is
surrounded by rivers on many sides and we must not ignore the limitations
that these natural barriers place on Easton. Intense retail development
in this geographical setting will turn the gateway into a "choke
point" because the proximity to water limits our ability to reroute
roadways around congestion. Our commercial and retail role must be weighed
against our function as a gateway to other areas.
· The development of Easton as a regional
marketing center for the Mid-Shore should not be encouraged. Such development
would inevitably threaten its geographically imposed function as a gateway.
The multiple projects proposed for Easton are not driven by the needs
of the local community but rather by the need of the developer to develop.
· As the noted planner Andres Duany has pointed
out "each developer who wants to build one housing subdivision, one
office park or one shopping center at a time can prove there is a market
for it. Allowing growth in this fashion is not planning, it is a sequence
of permits that, issued one at a time, allows the landscape to be consumed,
resulting in Anywhere, USA"
· See Exhibit B & C which depict the extent
of big box retailing on the Mid Shore
1.6 Q. If the Town changes its infrastructure (i.e. roads) to accommodate
current additional big box retailing proposals, will those changes, in turn,
generate additional development pressures?
TPA Response:
Yes. Bigger roads will inevitably bring more development and more traffic.
A case in point is I-270 in Rockville where development has outstripped
even a 12 lane highway.
1.7 Q. What are current big box retailers in Town?
TPA Response:
Please refer to Exhibit B.
1.8 Q. What has been our current experience with big box retailing?
TPA Response:
Current big box retailers adequately serve the resident population. There
has been a measurable increase of traffic off Rt. 50 to access the Giant
and Wal-Mart on Elliot Road at both Matthewstown Rd. and Dover Rd.
1.9 Q.
How can we improve and learn from our experience?
TPA Response:
· Preserve and improve that which exists.
Resist the idea that "bigger is better". Serve our present population
as a first priority.
· Rely on the Comprehensive Plan regarding
the locations of possible future big box retailers. The effect of any
big box proposals on existing retailers must be carefully weighed.
· Other municipalities are leading the way
in enforcing their Comprehensive Plan to shape their own destiny even
when the individual land owners' economic interests are affected. See
Exhibit D, "Zoning Bans Against Sprawl Locations".
1.10 Q. At what point does the presence of big
box retailing detract from Easton's quality of life?
TPA Response:
· We are already there!
· Any additional big box retailing will detract
from Easton's quality of life by increasing traffic, increasing demands
on public services and potentially damaging the environment.
· The scale of commercial development in Easton
is already affecting the character of the Town.
1.11 Q. What mechanisms can the Town use to give clarity to developers
regarding the big box requirements?
TPA Response:
A number of planning tools exist to help communities protect against
overdevelopment and ensure that a big box store respects the landscape.
These include:
· Zoning bans against 'sprawl' locations
(Exhibit D)
· Retail square footage or size caps (Exhibit
E)
· Moratoria on development
· Design standards such as those recentiy
adopted in Easton (Exhibit F)
· Retention zones to encourage downtown
retailing (Exhibit G)
· Impact fees to require new development
to carry its own weight
· Creation of development of regional
impact review boards (Exhibit H)
· Strict Definition /criteria for big
box store development ( Exhibit I)
1.12 Q. If the Town decides we want big box retailing what limitations
do we want to impose upon developers as far as location, and other physical
characteristics of the big box?
TPA Response:
· Require that such developments take place
within existing retail facilities and/or areas.
2.0 COMPREHENSIVE PLANS SHALL PROVIDE FOR "THE WISE AND EFFICIENT EXPENDITURE
OF PUBLIC FUNDS."
2.1 Q. What are the fiscal benefits and detriments to the town which will be
associated with
additional big box retailing?
TPA Response:
· Absent knowledge of the big box occupant,
fiscal impact is difficult to quantify. However, there is insufficient
consumer demand/expenditure potential to support new big boxes and
the existing retail stores. See Exhibit J regarding expenditure potential.
· Should Home Depot and a correspondingly
enlarged Lowe's deploy in Easton, clearly they will negatively impact
Moores, Warrens, Shortall Building Supply, Talbot Building Supply, Charter
Distributors, The Lumberyard and Easton Hardware.
· For the past 15 years, the NATIONAL MAIN
STREET CENTER has worked with 1,100 towns, cities and urban neighborhoods
in 40 states. The Main Street Center has concluded that: "without
question the single greatest cause of the economic decline of traditional
commercial districts is commercial 'glut' (i.e. an excess of commercial
space over commercial demand)." Exhibit K)
· According to the NATIONAL MAIN STREET CENTER
this problem is directly attributable to the following:
· An excess supply of commercial space
in the community.
· The inability of available retail dollars
to support enough square footage of retail businesses to occupy a
significant share of the available retail space.
· The hidden costs of attracting customers
from outside the community's primary trade area to augment sales in
the superstore and to replace sales in the traditional commercial
district which have been displaced by the superstore.
· "Impacts of Development on DuPage County
(Illinois) Property Taxes" January 1992. An exhaustive study conducted
in 1991 by the DuPage County planning department that demonstrated"...
there is a significant statistical relationship between new development
(both residential and nonresidential) and increases in personal property
taxes."
· The same study concluded that by attracting
regional shoppers (who come from outside the community & therefore
do not pay local property taxes), the superstore/shopping center places
higher demands on municipal services. The study concluded, specifically:
New development that attracts regional shoppers actually COSTS
the local government MORE money than it generates through the new
development.
· To pay for increased demand for services
such as police protection, water and sewer, roads and infrastructure,
local government must raise property taxes. Such increases disproportionately
harm lower income households.
· A study by the Real Estate Services
Group, of Washington, D.C. demonstrated that a typical downtown commercial
building that has been vacated costs the community the following amounts
each year:
· $125,000 in direct retail sales
· $70,125 in secondary retail sales
· $15,000 in salaries
· $6,000 in rents
· $625 in property taxes
· $5,600 in business profits
· $4,750 in bank deposits
· $3,400 in utility collections
· $13A14 in loan demand
· $2,000 in lost advertising revenues
2.2 Q. What are the tax benefits of additional big bar retailing versus
its costs both hidden and obvious?
TPA Response:
· Absent knowledge of the big box occupant,
net impact can only be estimated1 but the impressive
oversupply of retail space in our area strongly suggests that the net
effect will be negative. One of the Chamber of Commerce panelists recently
stated in Easton that for every $1 in revenue collected the associated
direct cost to the taxpayer is $1.12.
· Expenditure potential and retail services
presently offered must be seriously considered. See Exhibits A & I.
2.3 Q. Can the Town quantify the demand that additional big box retailing
will place on public safety services?
TPA Response:
No. Absent knowledge of the big box occupant it is impossible to quantify
the amount of public safety services costs. This is one of the reasons
the Town should insist on having prospective occupants that testify before
town authorities.
2.4 Q. Are the fiscal benefits and detriments associated with additional
big box retailing different from other types of development, i.e. residential,
industrial?
TPA Response:
Yes.
2.5 Q. Are they greater or less?
TPA Response:
· Greater, because failed big box
stores create empty hulks that are not easily used for other purposes.
Associated adjacent businesses will suffer from such vacancies.
2.6 Q. Are there studies done by other jurisdictions which can assist the
Town in answering these questions?
TPA Response:
· Yes, the National Main Street Center has
worked with over 1,100 municipalities in 40 states. See Exhibit K.
· LDR, the company that completed the Revitalization
Study in Easton, is an excellent source for this type of information.
2.7 Q. What fiscal impacts will additional big box retailing have on Talbot
County?
TPA Response:
· Significant and negative impact.
The existing retail space per capita (Easton only) is more
than triple industry averages. See Exhibit L.
2.S Q. What, if any costs related to infrastructure improvements should
the Town require developers to pay?
TPA Response:
ALL
3.0 COMPREHENSIVE PLANS SHALL ENCOURAGE ECONOMIC GROWTH
3.1 Q. What economic impacts will additional big box retailing have upon the
private sector
economy in Easton? Direct property value impacts on adjoining or nearby
property?
TPA Response:
· Studies of more than 30 Iowa communities
conducted by the Main Street Center showed that commercial valuation in
traditional commercial districts where a big box store has had a presence
for at least seven years almost always declines in value. See Exhibit
K.
3.2 Q. Effects on other retailing both in Downtown Easton and elsewhere?
Existing shopping centers?
TPA Response:
Studies of 15 Illinois communities by the Illinois Institute for
the Rural Affairs at Western Illinois University concluded that,
when a large discount store opens, although some businesses gain customers
(gas stations and restaurants) and other businesses lose customers (furniture,
groceries, hardware, some apparel), the net effect on existing businesses
is likely to be negative. See Exhibit K.
3.3 Q. Effect on unemployment?
TPA Response:
It can hardly reduce unemployment which is now 1.6% in Talbot County,
the lowest rate in Maryland. See Exhibit M.
3.4 Q. Are retailing jobs the kinds of jobs Easton wants to encourage at
this point
TPA Response:
No. When queried, an official at the Talbot County Social Services office
said that in our area, technology-related businesses are the ones that
are needed because they pay well and provide needed benefits, whereas
most of the manufacturing and retail jobs now available pay only $6 to
$8 per hour which makes multiple jobs a necessity for even a minimum
standard of living.
3.5 Q. Are there sufficient persons in the labor pool to pro yide
employees?
TPA Response:
No. Talbot County Social Services official said that Talbot County suffers
from a chronic shortage of workers, and new big box retailers would have
to import a work force or siphon off workers from existing businesses.
3.6 Q. What supporting development, for example restaurants, will big box
encourage and does the Town want these supporting developments?
TPA Response:
· Studies have shown that large discount stores
increase business for restaurants and gas stations. Easton seems adequately
supplied with these businesses at present. See Exhibit K.
4.0 COMPREHENSIVE PLANS SHALL PROVIDE FOR "THE PREVENTION OF
ENVIRONMENTAL POLLUTION" AND THE "STEWARDSHIP OF THE CHESAPEAKE BAY
AND
THE LAND ISA UNIVERSAL ETHIC"
4.1 Q. What environmental effects will additional big box retailing have
upon the environment in and surrounding Easton? Is additional big box retailing
in Easton consistent with stewardship of the Chesapeake Bay and the land?
TPA Response:
Additional big box retailing is not consistent with the stewardship
of the Chesapeake Bay and the land. In its "Choptank River Basin
Environmental Assessment of Stream Conditions" (Dail, et al, 1998).
The Maryland Department of Natural Resources notes that further urbanization
of the Choptank River watershed (which includes the Tred Avon River) will
have a negative impact on its aquatic resources such as crabs, fish and
waterfowl that rely on this important habitat. See Exhibit U. This negative
impact will counter local and regional efforts to clean up the Bay and
its tributaries. Under present stormwater and wastewater standards, additional
big box retailing will negatively impact rivers around Easton, which are
already listed as impaired by the Maryland Department of Environment.
4.2 Q. There are expressed concerns over the ability of the Easton wastewater
treatment system to treat discharge adequately for the Choptank River. How
well does the Town fulfill its obligations currently?
TPA Response:
a Undetermined at this point
Easton's wastewater treatment plant's permit is presently up for renewal.
New requirements can be expected.
· The Trappe wastewater plant has had to
reduce the amount of pollutants it puts into a tributary of the Choptank
River by 50% at a cost of $8M. Water and sewer rates will quintuple.
4.3 Q. Can the Town fulfill its obligations in this regard in the future?
TPA Response:
Unknown, until the dimensions of its problem are defined by the new regulations
Easton handles 10 times the Trappe total for wastewater. Additional big
box retail development should be postponed until the details of the new
permit are known.
4.4 Q. What is the effect of
surface water run-off on the Tred Avon River?
TPA Response:
· Significant and deleterious. A recent professional
study has revealed the presence of hazardous substances (as defined by
EPA) in the Upper Tred Avon River at Easton Point. These substances, not
found in nature, are the result of urban run-off. A second sample further
down the river was practically devoid of these substances.
· The Upper Tred Avon has lost almost all
its bay grasses in the last 30 years, and is already listed as impaired
by the MDE. Additionally, some of the properties being considered for
"big box development" drain into King's Creek. The
mouth of King's Creek contains one of the most important
wetland habitats in the State of Maryland, the Nature Conservancy's "King's
Creek Preserve". The impact of pollution such as heavy metals generated
from potential big box developments should be considered by the Town of
Easton.
4.5 Q. Is it different for additional big box retailing than for other
types of development? More harmful? Less harmful?
TPA Response:
More harmful since impervious surfaces (i.e. buildings and parking lots)
will add more pollutants to an already threatened ecosystem.
4.6 Q. The Maryland Department of the Environment is planning to issue
new surface water treatment standards. Will adherence to these standards
improve the quality of run-off? when will these standards be effective?
TPA Response:
Definitive answers must await the issuance of the standards, but we can
expect increased stringency. The Easton Zoning Ordinance requires that
site plans improve water quality (Sec. 8 p.14).
4.7 Q. What effect will big box retailing have on noise, illumination,
air quality, and visual characteristics of the Town?
TPA Response:
Additional big box retailing will generate more noise, illumination and
air pollution. Anything that damages the vitality of the town center will
be detrimental to its visual characteristics. Also, the visual characteristics
of big boxes will be very prominent at the gateways to Easton, and will
not be consistent with Easton's image as the "Colonial Capital of
the Eastern Shore".
5.0 COMPREHENSIVE PLANS SHALL CONTAIN 'ADE QUA TE PROVISIONS
FOR TRAFFIC"
ALL OR ALMOSTALL OF THE LAND UPON WHICHADDITIONAL BIG BOX RETAILING
CAN
CURRENTLYBE LOCATED IN EASTON IS ON OR CLOSELY ADJACENT TO ROUTE
50, ROUTE
322 OR BOTH
5.1 Q. Can Route 50, Route 322 and the secondary road system adequately
handle traffic generated by additional big box retailing?
TPA Response:
· We doubt it seriously. Traffic is already
a problem in Easton. Route 50 is loaded particularly with through beach-bound
traffic and is a significant impediment to cross-town traffic. More retail
traffic, particularly out-of-town customers, would further exacerbate
the situation.
· "The responsibility of the Town is
to provide high-quality community services and facilities to guarantee
public health, safety and welfare, and to enhance the quality of life
of those who visit, live, or work in Easton" (Comprehensive Plan,
pg. 77).
· According to the Traffic Group Study of
7/31/98 the current SHA Level of Service rating for the intersection of
Rte. 50 and MD Rte. 322 in the evening peak hour on Friday is "E"
with "F" meaning failure. See Exhibit T for daily loads.
· Easton's location makes the town a gateway
for everyone travelling to and from Saint Michaels, Oxford, Trappe or
beyond
the proposed big box shopping centers will overload the road network
and create
barriers. See Exhibit N
· Free flow of traffic through and around
Easton to other areas of the county is vital in order to promote tourism.
Such traffic will inevitably be restricted by the growth associated with
new big boxes.
i2 Q. What are the current capacities and anticipated traffic volumes of
Route 322, Route 50 and Route 33 over the next five years? Does the SHA
have any plans to improve conditions on those roads? How much traffic will
additional big box retailing generate?
TPA Response:
Exhibit T shows the current traffic volume. Pending further information
from the SHA, a 10% annual increase based on population seems reasonable.
· Mr. Parker Williams, State
Highway Administrator said he predicted that traffic on Rte. 33 to Saint
Michaels will increase 30% next year.
· Easton has experienced a disproportionately
rapid increase in retail development over the last 10 years when compared
to our population growth. Thus, the traffic volume has also disproportionately
increased and has begun to clog our arteries.
· The MD SHA stated in 1998 that there were
no plans for road improvements, other than resurfacing maintenance,
on these roads for the next 20 years. (The Saint Michaels Rte. 33 Bypass
and the Dover Rte. 331 Bridge replacement were two projects under consideration
during that time). See Exhibit 0.
· Again, absent knowledge of the occupants
of proposed big boxes, it is difficult to quantify traffic impact. This
is a task for an independent professional analyst.
· On average, we are told that a big box home
center generates 25,000 customers per week, supermarkets 10,000 customers
per week (industry average) and consumer electronic
big box stores 15,000- 18,000 customers per week. None of these figures
factor in store deliveries from outside suppliers.
· Clearly, any savings to the consumer as
a result of big box discount retailing will be bought with higher taxes
for city and county residents. Such savings will also be costly in terms
of a deterioration of our downtown district.
5.3 Q. Can the Town and the public obtain more accurate information regarding
volumes of traffic?
TPA Response:
Yes. Additional information can be obtained from the retailer occupant
and comparable store data coupled with testimony from an independent traffic
consultant.
5.4 Q. Most or all of the potential
additional big box retailing issues are also served by the secondary road
system of Talbot County: Black Dog Alley Chapel Road, Glebe Road, Goldsborough
Neck Road Are these roads capable of handling larger volumes of traffic
which will be generated by additional big box retailing?
TPA Response:
No. These narrow secondary roads could easily be saturated with additional
traffic from big boxes. Not only would movement be slow on such roads,
but life for those citizens who live on or close to them would be unpleasantly
impacted. These roads were not designed nor constructed to handle such
traffic. Upgrading and maintaining them will cost the taxpayer dearly.
5.5 Q. In the 1980's and early 1990's, the Town approved Carleton Business
Park which now features Wal-Mart and Giant. It was anticipated at the time
that the arrangement of Elliot Road, Route 328 and Route 331 would be adequate
for that development what can the Town learn from that experience?
TPA Response:
We have traffic congestion problems at both ends of Elliot Road and a
proposed Staples will only exacerbate the problem.
· What we learned from this experience is
that this area was not designed to handle the increase in customer and
truck traffic that we now experience. Further, a complete build-out of
available space will aggravate this situation.
5.6 Q. what degree of cooperation and coordination can the Town
realistically anticipate with the County and SHA as demands on road systems
increase as a result of additional big box retailing?
TPA Response:
· Only the town authorities can make such
an appraisal.
· A Capital Improvement Plan should be developed.
(Comprehensive Plan, pg. 26).
· Such a plan provides for the orderly addition
of improvements at a rate needed to accommodate anticipated growth. It
provides the vehicle for elected officials to set priorities and to make
the most efficient use of available funds. There is a danger in letting
capital improvements follow rather than lead the development process.
The recent joint town-county exploratory meeting was encouraging, but
more is required with town-county growth factored into planning. The big
box Moratorium and study is a first step, although a county-wide study
involving Easton, Oxford, St. Michaels, and County
authorities is recommended. Further the subject is important enough and
complex enough to justify the expense of participation by a professional
planning firm.
5.7 Q. If additional big box retailing will require significant changes
to our street system, are the residents of Easton willing to tolerate the
changes to traffic patterns and streets and highways to accommodate additional
big box retailing?
TPA Response:
No. As residents have repeatedly testify in public hearings and elsewhere,
they are deeply concerned about growing congestion.
5.8 Q. Should the Town adopt minimum standards of service for affected
road systems for future development proposals in the Town?
TPA Response:
Yes. The Comprehensive Plan states the following:
· The Town is required to develop an infrastructure
master plan, which should include a working transportation master plan.
Included in this master planning process are Small-Area Plans. Two areas
recommended were the Route 50 Corridor and the Easton Parkway Corridor.
· The critical concerns for these two corridors
are detailed in Comprehensive Plan, pg. 40, lines 22 through 24, and
pg. 41, lines 1 through 7.
6.0 COMPREHENSIVE PLANS SHALL PRO VIDE FOR 'THE PROMOTION OF GOOD CIVIC
DESIGN AND ARRANGEMENT" PROFESSOR DIRIKER STATED AT THE
GROWTH SYMPOSIUW
THAT DOWNTOWNS FUNCTIONS AS PLACES TO CONNECT PEOPLES WITH GOODS AND
SERVICES THEY NEED OR WANT AS TIMES HA VE CHANGED, THE PEOPLE, THE GOODS
AND THE SERVICES HA VE CHANGED AND WILL CONTINUE TO CHANGE IN THE FUTURE.
6.1 Q. Will the buildings in which big box retailing is located prove to be
flexible in meeting
changing needs and demands?
TPA Response:
· No, all big box retail stores are
nearly identical, predominantly single use facilities.
· Empty big box buildings are not at all conducive
to renovations for smaller occupants. These buildings are constructed
to specifications that are very particular to occupant needs, and are
essentially single-purpose buildings.
· Renovations for accommodating smaller retailers
are extremely costly. For example, setting up separate utilities for each
store is very expensive.
· The cost of partitioning a megastore is
very high, perhaps approaching original construction costs. These stores
are often 200 feet deep with tall ceilings. Since small retailers are
more interested in wider storefronts, this makes the space undesirable
for their use
· Refer to Exhibit P for information on typical
store prototype sizes.
6.2 Q. Does the town want to encourage/permit/prohibit this particular means
to connect
people with goods and services?
TPA Response:
Discourage - particularly in view of Easton's present overstored condition.
Big boxes are a satisfactory way of connecting people with goods and services,
but that is not the problem; rather, it is the direct and indirect cost
associated with additional big box retailing especially as it relates
to our downtown district.
6.3 Q. What is the current the span for big box retailing, particularly in
light of the emerging
alternate technologies for commerce?
TPA Response:
· Since big box retailing is a relatively
new phenomenon, the question may be unanswerable at this point. E-commerce
is rapidly changing the retailing landscape. See Exhibit Q for press coverage
of this issue.
· Exhibit R depicts the cycle(s) of big box
retailing.
· The retail industry is consolidating at
unprecedented levels creating great uncertainty for the small chains and
"mom & pop" retailers.
6.4 Q. what mechanisms should be imposed in the event that a big box becomes
vacant? Guarantees? Bonds? How have other communities converted vacant big
boxes to other uses?
TPA Response:
Little can be done. Future use of the property cannot be legislated by
the town or county. Developers may lease the vacant building to anyone
they choose, which can include any of a number of non-retail businesses
with no need for attractive appearances, e.g. warehouses, freight companies,
etc., leading to the risk of creating unsightly areas of commercial development.
· Big boxes will close stores to build larger
facilities elsewhere to preserve market share. In some cases, it makes
economic sense to keep the store vacant or out of competitive hands.
· Vacant big boxes will be converted for any
purpose permitted by zoning ordinance including flea markets, training
schools, civic organizations, amusement malls, storage facilities, etc.
· Vacant periods can be long. In Portland,
ME an 85,000 square foot HQ box is still mostly vacant after 5 years of
active attempts to lease or sell. See Exhibit S.
6.5 Q. What is the current ratio of commercially zoned, residentially zoned,
industrially zoned and institutionally zoned property in Easton? what is
the ratio of developed to undeveloped property in Easton? How do these ratios
compare to similar communities in this region?
TPA Response:
· The ratios mentioned above are highly changeable,
as developers will often seek rezoning and annexation to suit their purposes.
7.0 AS SUGGESTED BY MARGARET PICKALL, CHAIRMAN OF THE PLANNING COMMISSION,
WE HA VE ADDED SPECIFIC QUESTIONS TO BE ADDRESSED BY BIG BOX RETAILERS:
7.1 Q. What is appealing to retailers about Easton?
TPA Response:
· Lack of competition from national/regional
chains.
· On a comparative basis, lower real estate
costs.
7.2 Q. What are the closest locations of stores of equal size to those proposed
for Easton?
TPA Response:
- Please refer to map at Exhibit C.
7.3 Q. What are the big box retailer's volume expectations in terms of
numbers of customers?
TPA Response:
· Please refer to the big box overview at
Exhibit P
· Perspective big box retailers should be
obligated to testify before the Easton Town authorities on this subject.
7.4 Q. Now?
TPA Response:
Retailers should testify on this subject.
7.5 Q. In 5, 10, 20 years?
TPA Response:
Unknown.
7.6 Q. When would expansion be required?
TPA Response:
They will expand.
7.7 Q. How would it be accomplished?
TPA Response:
The quickest, easiest most inexpensive way possible.
7.8 Q. Is it possible for the retail shopping opportunities that are offered
by big box stores to be made available in Easton through other mechanisms,
for example "Home Depot Village Concept" or be retrofitted into
existing shopping centers?
TPA Response:
· Typically, big box stores rarely deviate
from their standard store deployment program.
Table of Exhibits
A - Existing Retailers Serve the Easton Market
B - Existing Retailers by County
C - Map of Mid-Shore Retailers
D - Zoning Bans Against "Sprawl Locations"
E - Retail Square Footage or Size Caps
F - Design Standards
G - Local Business Retention Zones
H - Developments of Regional Impact: Cape Cod
I - Definition/criteria for Big Box Development
J - 1998 Consumer Expenditure Potential
K - The Impact of Discount Superstores on Traditional Business Districts
L - Commercial Retail Space per Capita Analysis
M - Talbot County Labor Force
N - Developments Act as Bottlenecks for Through Traffic and Barriers
to the Town Center
O - MD SHA Project/Program Report for Talbot County
P - Big Box Overview
Q - E-commerce Progress Press
Coverage
R - Big Box - Life in the Commercial Fast Lane
S - Portland Press Herald Article
T - MD SHA Traffic Volume Map of Talbot County, 1998
U - Summary of Stream Resource Conditions
V - Washington Post Editorial, Oct. 31,1999- "The Box Stops Here"
ZONING BANS AGAINST "SPRAWL LOCATIONS"
Hailey, Idaho - a small town of 4,500 people. In the late 1980's Hailey's political
leadership could see that sprawl type development would probably occur on the
outskirts of town unless action was taken. In 1990, the town amended its Comprehensive
Plan as follows:
limited new commercial activity to the downtown area;
· required that land
already annexed into the city be developed before more land could be annexed
· created a historic
district
· required fiscal impact
studies for new developments to whether they would generate sufficient tax
revenues to defray public costs necessary to support them
In 1993, the city "downzoned"
land on Hailey's periphery by placing new zoning restrictions on the commercial
use of that land. Businesses deemed compatible with surrounding residential
neighborhoods continued to be allowed, but those likely to prove disruptive
(heavy traffic generators, for example) were not.
A property owner who wanted to develop his land for sprawl type, large scale
development sued the city alleging that the down zoning was:
· "arbitrary and capricious"
an invalid exercise of the police power"
· tantamount to "protectionism"
for downtown merchants from competition
· an unconstitutional
"taking" of private property without just compensation
On September 25, 1995, The Idaho Supreme Court upheld the city of Hailey's
down zoning action.
· the court rejected
the property owner's argument that a mere reduction in property values caused
by the down zoning was an unconstitutional "taking" of private
property, noting that even under the revised ordinance, the property owner
could still develop his land for business purposes.
· the court rejected
the "protectionism" argument "Determining where particular
business uses shall be allowed to expand in a community is normal an appropriate
exercise of police power."
· the court upheld the validity of zoning rules
designed to protect the economic health of a downtown: "Preserving
aesthetic values and the economic viability of a community's downtown business
core can be a proper zoning purpose."
See Springer Grubb & Associates v. City of Hailey, 903 P2d (Idaho
1995).
For a similar decision involving a regional shopping mall that threatened downtown
Lawrence, Kansas see Jacob8 Visconsi
& Jacobs V. City of Lawrence, Kansas
927 F2d 111 (10th Cir.1991)
Exhibit D - Zoning Bans Against "SPRAWL LOCATIONS"
RETAIL SQUARE FOOTAGE OR SIZE CAPS
Wilton, CT 30,000 sq. ft. limit of size of retail businesses. Retailers
over 20,000 sq. ft. must provide:
sidewalks for pedestrian access
- devote at least 35% of the building facade to window
· screen the parking
lot with landscaping or hedges
· conduct traffic
and economic studies to assess impacts on residential streets and
the town center
Greenfield, MA Development projects are defined as "major"
and subject to special review if they:
- exceed 20,000 sq. ft.
- generate more than 500 vehicle trips per day
Major development applicants must submit the following analyses:
· fiscal
· traffic
· municipal service
required environmental
· community impact
(to include a project's effect on surrounding historic, archeological
and Scenic sites/ adverse impacts on historic and scenic sites and on
downtown business districts be mitigated)
East Hampton, N.Y. 15,000 sq. ft. limit on gross floor area of retail
stores
· Architectural Review
Board "shall not be constrained [in its review of the architectural
design of superstores] by the preferences of a particular applicant (such
as a large corporation or chain store) for a distinguishing motif, style
or design which the applicant uses generally for other structures within
the town or elsewhere.
· Grocery stores may
not exceed 25,000 sq. ft. in gross floor area
- Parking must be located primarily to the side and rear of the building and
not in front.
Mequon, Wisconsin
20,000 sq. ft. limit on stores in "community business districts."
Overall cap of 500,000 sq. ft. on the total amount of retail space allowable
in its major commercial corridor.
Exhibit E - Retail Square Footage or Size Caps
Assumption of National Retailers (and Lenders)
Levels: Store must be windowless, one-level structures because;
(a) it's too expensive to build rntilci4evet scores requiring elevators,
escalators, and stronger structural support for upper floors; (b) stairwells,
escalators, extra check-out stands arid windows consume otherwise use-able
retail space; and (c) customers can't move carts on escalators to upper
floors.
Design: Stores can't have windows because they cake up otherwise
useable retail space. They can7t have landscaping because
that's too expensive. A "no-frills," unadorned style of architecture
sends a message to consumers that the products sold in the store will
be inexpensive.
Location: Stores must be built on raw land located away from
downtown and population centers in order to provide space for large
parking lots,
Parking: Stores must have huge parking lots (between
5 and 7 parking spaces for every 1,000 square
feet of retail space). This parking must always
be in front of the store so that potential customers can see that there
is parking. Many private lenders will not finance projects that deviate
from this parking formula.
Highway Access: Stores must be located on a major commercial
strip or near the exit of a major highway to provide quick and easy
access.
Critique of Assumptions
Levels: Many customers can hold their purchases in sacks arid move
easily from floor to floor using stairs, escalators or elevators, as
they did for decades in tra6i-tional department stores, But for customers
who cannot do so because they are carrying many heavy or bulky items
in carts, elevators can be provided. (See chapter on Target iii
Pasadena.)
Design: Many of these design principles simply reflect an attitude
of "we have always done things this way." Visual preference
studies taken all over the country indicate that customers prefer well-designed,
attractive stores with amenities and lantiscaping121
By building stores that do not create sprawl, retailers. can avoid
delays and legal expenses incurred in fighting community opposition.
Retailers can also gain a better image - worth millions
- as a responsible corporate citizen.
Location: Many cities have large tracts of vacant land (often
the legacy of urban renewal) that could redeveloped for sensitively-
and well-designed superstores. Still other cities have vacant department
stores (or other large buildings) that could be adapted for new
superstores. Many suburban markets are "over-stored"
- i.e., glutted with too much retail space - while
many downtown and other neighborhood markets have been overlooked.
Parking: Many parking spaces at shopping centers stand unused much
of the year because parking lots are designed for the busy Christmas
season. An Urban Land Institute report found that over half the available
spaces in many shopping centers sit empty 40 percent of the year.22
Many communities promote the concept of shared parking, whereby
several businesses in an area help to pay for parking that they all
share,
Highway Access: Stores do need to be accessible3 but
if located in a dense commercial area such as a down-town, a significant
part of this access can be provided by sidewalks (for pedestrians)
and transit (for transit users)4 if a store is
located in an area that people can reach by foot and transit as well
as by cat; fewer parking spaces are needed. In the Lechmere store at
Cambridge Side Galleria in Cambridge, Massachusetts, for example, the
developer built only 3 parking spaces for every 1,O0O square feet of
retail space instead of the industry standard's 5 to 7 spaces. if located
in downtown filled with office workers and near close-in residential
neighborhoods, stores can draw on these markets. Some stores make deliveries.
Stores that stand apart from existing communities often require new
or wider roads, water-
BETTER MODELS for SUPERSTORES
Exhibit F- Design Standards
LOCAL BUSINESS RETENTION ZONES
Greenwich CT preserves locally-owned small business through "local business
retention zones" intended to "protect and encourage neighborhood-oriented
retail development". The zones are defined in part as areas that:
· "provide central
but limited concentration of the complementary retail goods and personal
services in convenient locations to meet the frequent recurring needs
of nearby residents"
· "do not depend
on areas substantially larger than the neighborhood districts they are
designed to serve and …do not attract a significant part of their
clientele from beyond the surrounding neighborhood"
Exhibit G - Local Business Retention Zones
DEVELOPMENTS OF REGIONAL IMPACT: CAPE COD
Recognizing g that large scale developments, including superstores, often have
regional impacts and that small towns usually lack the wherewithal to review
these projects, the Massachusetts legislature enacted the Cape Cod Commission
Act, which gives the Commission authority to review and regulate developments
of regional impact (DRIs). DRIs include projects likely to have significant
impacts on more than one municipality on Cape Cod. These potential impacts include:
· historical
· cultural
· architectural
· archeological
· recreational
· environmental
· economic
· fiscal
Such analysis do not prohibit superstore projects from going forward but they
act to ensure that communities ask pertinent questions, obtain relevant information
and plan adequately for the effects of such developments.
Exhibit H - Developments of Regional Impact: Cape Cod
The Impact of Discount Superstores on Traditional Business Districts
Testimony submitted to the Town of North Elba Planning Board
Kennedy Lawson Smith, Director
National Main Street Center
National Trust for Historic Preservation
June 6, 1995
In budgeting for municipal services, a local government knows it can responsibly
provide only those services which the tax revenues generated by its
citizens can feasibly support.
Yet, some local governments routinely permit new commercial construction
that results in more commercial space than the community's population can
feasibly support. Retail dollars, like tax dollars, are a finite supply.
Overbuilding commercial space, like overspending municipal revenues, has
serious economic consequences for a community and a region.
In the 15 years since it was created in 1980, the National Trust for Historic
Preservation's National Main Street Center has helped almost 1,100 towns,
cities and urban neighborhoods in 40 states rebuild the economic viability
of their traditional commercial districts - their main streets. The Main
Street Center has more extensive experience in examining the economics of
traditional commercial districts than any other entity. And, we have concluded
that, without question, the single greatest cause of the economic
decline of traditional commercial districts is commercial "glut"
-meaning an excess of commercial space over commercial demand.
In our extensive work with traditional commercial districts affected by
the addition of a discount superstore to the primary trade area. we have
found that economic impact analyses of the proposed superstore almost
always substantially underestimate the net impact of the new discount
superstore on the local and regional economy, particularly by failing to
take into consideration such factors as:
1. The costs of launching and sustaining a revitalization program to
find new uses for commercial property made vacant by displacement due
to the discount superstore. plus the costs of providing financing, business
development programs1 and financial incentives to re-stimulate
the economy of the affected commercial district
2. The long-term tendency of property values in a traditional commercial
district which has suffered commercial displacement to deteriorate on
an accelerating basis, due to the cumulative impact of property and
district deterioration over
Exhibit K - The impact of Discount Superstores on Traditional
Business Districts
a period of ten years or more (most economic impact analyses consider only
the potential decline in property values over a 2-3 year period)
3. The costs of municipal revenues and personal income indirectly lost
trough secondary retail sales (such as purchases made by affected
retail businesses in other community retail businesses), lost or reduced
salaries, lost advertising revenues, lost bank deposits, and other economic
losses. A 1989 study by the Washington. DC-based Real Estate Services
Group, based on surveys in over 400 communities whose traditional commercial
districts had experienced economic decline due to excess commercial space
in the regional trade area, quantified some of these indirect costs, concluding
that the indirect cost to a community of one vacant two-story downtown
commercial building (with an average of 2,000 square feet per floor) was
equal to almost $250,000 annually, including:
o $195,125 in indirect retail sales
o $15,000 in salaries
o $6,OOO in rents
o $625 in property rues
o $5,600 in business profits
o $4,750 in bank deposits
o $3,400 in utility collections
o $13,414 in loan demand
o $2,000 in advertising revenues
Please note that these are 1989 dollars; the 1995 equivalent value would,
of course. be even greater.
The negative economic impact of a discount superstore experienced by most
of die 1,100 communities with which die Main Street Center has had first-hand.
on-site experience has little to do with the quality, variety or price of
the merchandise provided by the superstore. Instead, the problem is attributable
simply to the excess supply of commercial space in the community, the inability
of available retail dollars to support enough square footage of retail businesses
to occupy a significant share of the available retail space, and the hidden
costs of attracting customers from outside the community's primary trade
area to augment sales in the superstore and to replace sales in the traditional
commercial district which have been displaced by the superstore. When commercial
property is vacant for a significant period of time it inevitably declines
in condition and, eventually, in value. In addition, the cumulative impact
of deteriorated property negatively affects the economic viability of all
businesses and commercial properties in the district (typically within 8-10
years).
Sales leakage in some retail categories is inevitable many community, and
the fact that a community such as North Elba is experiencing some sales
leakage is not adequate justification for adding to the supply of retail
space Practical, less expensive alternative exist - including investing
public dollars which will otherwise be spent (both directly and indirectly)
to support, subsidize, or offset the losses caused by the proposed discount
superstore1 to strengthen existing businesses (by providing small
business training, for instance. by conducting retail market analyses tailored
to the needs of traditional commercial districts, by investing in small
business development programs, and by recruiting compatible - not competing
- businesses to round out the mix of retail goods and services available
in the community).
4. The tact that most small, independently owned retail businesses Operate
on relatively small profit margins (as do discount Superstores, also)
and that displacement of even a small percentage of sales - as little
as eight percent -can put a small, independently owned business in jeopardy
The comments that follow are based on:
1. A review of documents relating to the Wal-Mart recall store
proposed for North Elba, New York - in particular:
o Draft Environmental Impact Statement, North Elba Wal-Mart Retail
Store, Town of North Elba, County of Essex, vol.1
o "Economic and Fiscal Impact Analysis of die Proposed Wal-Mart
Development, the Town of North Elba, New York, May 11, 1995," by
RKG Associates, Inc.
Review of a previous economic impact analysis conducted by RKG Associates,
Inc. for a similar discount superstore development in SL Alban's, Vermont
3. The experiences of the National Main Street Center in 1,078 communities
throughout die United States and the Commonwealth of Puerto Rico in examining
and mitigating the impact of discount superstores such as the one proposed
for North Elba, New York
Based on an examination of the two documents cited above and on our professional
expertise in over 1.000 communities which have faced decisions similar to that
now confronting the North Elba Planning Board, we have reached the following
specific conclusions:
1. The "Economic and Fiscal Impact Analysis" prepared by RKG
Associates,
Inc. underestimates the net impact on property and sales taxes for Essex
County.
The Analysis makes reference to the experiences of Iowa communities
affected by discount Superstores, which have been extensively studied
and reported on by Dr. Kenneth Stone of the University of Iowa, stating
that, based on interviews with officials in communities in which
Wal-Mart has bad a presence for at least seven years,
".. there is no evidence to Suggest that Wal-Mart has directly
caused a deterioration either in residential property values or in commercial
property values. As such, the presence of Wal-Mart in these communities
has not resulted in a reduction in property taxes collected or in a
Community’s ability to provide municipal services (p.81)."
This Statement is misleading and incorrectly Based on the Main Street
Center’s intensive work with more than 30 Iowa communities
since
1985 and our analyses of retail trends (both currently and retroactively)
in these communities, we have found that:
a. Commercial property is usually reappraised no less than once
a decade. and
b. when changes in commercial property valuation in traditional
commercial districts in communities in which Wal-Mart has had a
presence for at least seven years are examined over a 20-year period
of time, commercial property almost always declines in value
By failing to take into consideration the long-term impact on existing
commercial enclaves of a Wal-Mart in a trade area of the size that would
be served by the proposed North Elba Wal-Mart retail store, the
Analysis is unable to adequately or accurately estimate the potential net
fiscal impact on municipal revenues for the affected communities.
2. The number of jobs which the RKG Associates. Inc.'s Analysis estimates
will be gained (22) through the development of the proposed Wal-Mart retail
store is higher than our experience in the almost 1,100 communities with
which we have worked. Similarly1 the amount of retail sales
which the Analysis estimates would potentially be displaced from existing
businesses is significantly overstated.
The Analysis concludes that $12.33 million in retail sales would be displaced
from existing businesses in the primary trade area, with an additional $3.62
million in retail sales displaced from businesses located outside the primary
trade area (together, accounting for 88 percent of the proposed
Wal-Mart's sales). Based on the National Main Street Center's statistics,
this sales level is equivalent to that generated by approximately 67 independently
owned downtown businesses. employing 156 full-time-equivalent employees
at an average wage of approximately $6.35 per hour (almost 40 percent
higher than the avenge hourly wage typically paid by Wal-Mart). The Analysis
prepared by RKG Associates, Inc. estimates the number of jobs which would
potentially be displaced by the proposed Wal-Mart retail store at 112, significantly
below our estimate - which. again, is based on the experiences of almost
1,100 communities in 40 states. Furthermore, the Analysis
states that 83,155 square feet of commercial space could become vacant because
of displacement caused by the proposed Wal-Mart retail store. According
to our very conservative estimates, the actual number of square feet
that could be expected to be displaced by the proposed discount Superstore
is 132,900 square feet -significantly more (by almost 60 percent) than the
Ago Associates, Inc.'s estimate. Simply stated1 the conclusions
of die RYG Associates Inc. Analysis substantially underestimate the
negative economic impact on The North Elba/Essex County region of the
proposed discount superstore.
3 Of the more than 50 economic impact analyses of proposed discount
Superstores which the National Main Street Center has examined in the
past four years, the percentage of retail sales - 88 percent - which
is projected to be displaced from existing businesses to the proposed
North Elba discount superstore is the highest of any of these analyses.
Stated another way, the proposed Wal-Mart retail store will boost retail
sales for the North Elba/Essex County region (according to the RKG Associates,
Inc. Analysis) by only 12 percent. Bawd on the Ago Associates, Inc.'s
analysis, which projects that the proposed Wal-Mart will generate $18.1
million annually in retail sales, this is an increase of only
$2,172.000 in new retail sales. an amount which could he easily captured
by as little as a 0.92 percent increase in sales from existing retail businesses
in Essex County - less than one percent! - or by the addition of 5-8 new
retail businesses percentage derived from 1992 gross retail sales in Essex
County of $237, 468,000, reported in rite 1992 Census of Retail Trade,
Table 4, "Summary Statistics for Counties and Places With 2,500
Inhabitants or More"). Either option would cost the community of North
Elba and the Essex County considerably less than permitting the Construction
of a new1 80,000+ square-foot discount superstore.
'The projections of the potential impact of the proposed Wal-M~ in North
Elba prepared by RKG Associates, Inc. are similar in their overestimation
of positive impact to RKG Associates, Inc.'s projections of impact of a
proposed Wal-Mart discount superstore in St. Alban's, Vermont last year.
The negative net impact of excess commercial space in general, and of discount
Superstores in particular, to communities and to economic regions has began
to be
Well-documented in recent years. Among the studies most relevant to North Elba
are
the following:
- Impacts of Development on DuPage County [Illinois] Property Taxes
January 1992. This exhaustive study, conducted in 1991, demonstrates that
... there is a significant statistical relationship between [new] development
(both residential and nonresidential) and increases personal property taxes.
The study's other major conclusions:
Nonresidential development (which includes commercial, office, and
industrial land uses) is a major contributor to property tax increases in
DuPage County." It cites two specific factors:
1. New development attracts outride users (who don't live
in the community and who therefore don't pay property taxes there),
but also places higher demands on municipal Services.
2. Because the community becomes more urbanized through DOW development,
local residents demand "more urban services and amenities."
0 "Development that produces fragmented taxing codes through annexation
is found to contribute significantly to increasing property tax levies."
"The Impact of Large Discount Stores on Retail Sales in Illinois Communities,"
John Gruidl and Steven Kline (Western Illinois University's Illinois
Institute for Rural Affairs), Winter 1992. This study of 15 Illinois communities
in which large discount stores opened between 1986 and 1989 concluded that:
0 existing merchants in some categories (mainly gasoline stations and
restaurants) are likely to gain customers as a result of a new discount
store
0 existing merchants in other categories (furniture, household goods,
hardware, groceries, some apparel) are likely to lose customers
0 the net effect on existing businesses is likely to be negative
a retail trade in neighboring communities - specifically, smaller communities
within 20 miles of a Wal-Mart - drop sharply (this is
consistent with Dr. Kenneth Stone's study for the University
of Iowa, which showed that retail sales in communities within 20 mites
of a Wal-Mart had ".- average cumulative losses of 23.5 percent
in total retail sales. in the four years after the Wal-Mart opening
compared with a 10.8 percent loss for communities of the same size [with
no Wal-Mart within 20 miles]."
0 The Center for Urban Policy Research at Rutgers University has analyzed
the impact of the state's statewide growth management plan, which was
enacted to concentrate development where infrastructure already exists.
The Center concluded that:
0 Economic growth will be the Same as without the law, but there will
be a $1.3 billion savings in capital infrastructure costs.
0 The Same number of jobs will be created.
0 One-third less high-quality agricultural land will be lost.
0 According to a report by Lawrence Dougherty a. al. of the Rand Corporation
(Municipal Service Pricing: Impact on Fiscal Position). the capital
costs associated with providing municipal facilities (fire stations, streets,
sewers, flood control Systems, police protection, and so on) are more
than five times the costs of providing these facilities in a compact development.
You have been given the challenge of looking into the future and predicting
what the impact of a proposed new development might be - to examine studies
that have been conducted for this community and for other places and to estimate
the impact of a type of development that, by and large, hasn't really affected
New England and the Mid-Atlantic states, yet. I bring a different perspective
- a vantage point that comes from observing the experiences of nearly one thousand
towns and cities in 40 states in all pans of the country.
Every community wants new development, because every community wants
to
increase its municipal revenues. The staff of the National Trust's Main Street
Center have rarely encountered a community that doesn’t want new
development The question we ultimately face isn't one of IF new development
should take. place, but of HOW it should take place and of which is the most
cost-effective alternative and the alternative ultimately of greatest economic
benefit to the community. Based on our experiences and on our examination of
the likely impact of the proposed Wal-Mart retail store on North Elba and Essex
County, we believe that the net economic impact of the proposed development
will be overwhelmingly negative and that the community rid region would fare
better, fiscally, by investing in strengthening existing commercial centers.
National Trust for Historic Preservation National Main Street Center
June 29, 1993
Gail Webb Owing:, planning director
Kent County
Court House
Chestertown, MD 21620
Dear Mr. Owings:
I appreciate having had the opportunity
to testify recently before the Kent County Planning Commission on the application
by CLI Partnership to develop a commercial site for use
as a Wal-Mart in Kent County. I thought it might be helpful
if I summarized my testimony in writing for you and for the members of the Planning
Commission I would appreciate it if you would share this
summary with them.
The National Main Street Center, a program
of the National Trust for Historic Preservation, helps communities
revitalize their downtowns. To date, we have worked with over 850 towns
and cities in 34 states develop and implement comprehensive revitalization
strategies. The Main Street program has had unparalleled success in downtown
revitalization: by the end of 1992, every dollar used to support a local Main
Street program had leveraged over $22 in new investment in physical improvements
alone in the downtown, of Main Street communities, making the Main Street
program one of the most successful economic development strategies in
the nation
The Main Street program's goal is to preserve historic and
traditional commercial buildings and districts - traditional downtown areas.
Making historic and traditional commercial buildings economically viable - and
ensuring that they remain viable - is one of the key elements of this
process Simply stated, commercial property must generate rental income sufficient
for property owners to rehabilitate and maintain their buildings. To generate
sufficient levels of income, the district as a whole must function as
a solid, cohesive economic entity
There are a number of ways a community can meet this objective
But one of the most fundamental principles of the revitalization process
is concentrating commercial uses within the district, rather than allowing
them to "sprawl" outside the district A community can only support
a certain amount of commercial space. Without a dramatic increase
in population, new commercial space will simply displace a nearly-equal
amount of existing commercial space. When this disproportionate
growth in commercial space takes place, the downtown suffers economically.
And. because many businesses operate with a relatively small profit
margin. displacing even a relatively small percentage of gross sales
can place small, independently owned businesses in peril.
In considering the potential impact of a new commercial facility
of the size proposed for the Scheeler site, I have done three things:
1. First, I have reviewed the Kent County comprehensive plan and carefully
studied those sections on which I am best qualified to comment
2. Second, I have reviewed published studies on the
impact of national discount stores on communities like those in Kent County.
3. Finally, I have analyzed the potential impact on retail sales
and on small, independently owned businesses in Kent County of a new, 1000,000
square foot discount store.
I have concluded that the development of a new, 100,000 square foot discount
store of the type proposed for the Scheeler site in Kent County is inconsistent
with Kent County’s comprehensive plan, in that it is in direct conflict
with two of the Comprehensive Plan's clearly stated objectives:
1. to support small, locally owned businesses, and
2. to prevent commercial sprawl outside the County's existing traditional
commercial centers.
1. Kent County's Comprehensive Plan: In examining
Kent County’s Comprehensive Plan, I have paid particular attention
to the sections from which the following passages arc excerpted:
a. "The County will strive to create a business climate attractive
to and of small family businesses" (p. 23- Economic Policies).
b. "The problem [of preserving the County's rural character] may
seem lass critical because there is so muck land but there is a danger
of establishing bad precedent if controls are not strict" (p. 33-
OVERALL GOALS FOR LAND USE).
c. "…[Commercial Uses must be so looted as to not destroy
existing commercial centers which represent substantial public
and private investment, particularly those located in the existing communities"'
(p. 34- OVERALL GOALS FOR LAND USE)."
The objectives specifically named to achieve this goal include:
"Reinforce and revitalize existing communities through the
maintenance and re-use of existing structures.(pp. 34-35)
"Strengthen existing commercial centers and allow a
limited number of new County retail and business centers
" (p. 35)
d. Three principles are outlined to guide the County's land use policies:
'The preservation of rural character and the agricultural use of
land will be strongly supported. This policy is key to the success
of this plan"(p.
35- LAND USE POLICIES).
"It is important that the visual character, scale, and density
of Kent County's existing communities be maintained. To this end,
they will be protected through the encouragement
of compatible development and the prevention of intrusion by agricultural,
commercial and industrial activities" (p. 37- LAND USE POLICIES).
"Allowing a scattered pattern to develop will be very
costly in terms of service provision and losses of agricultural
land. New residential or commercial uses in extended
strips along major roads will be discouraged by appropriate
legislation" (p. 37 - LAND USE POLICIES).
The sections of Kent County’s Comprehensive Plan from which these
passages are excerpted make it clear beyond doubt - that the Comprehensive
Plan's intent is to guide new commercial development in ways
that reinforce the County's rural character and that support and
foster the growth of small, independently owned businesses. The proposed
use of the Scheeler site runs counter to this intent,
Studies on the impact of national discounters: There have been several
major studies
conducted in recent year; on 'kg impact of commercial sprawl in general
and national discounters in particular
a. University of Iowa: Dr. Ken Stone of the University of Iowa
has conducted studies on the impact of one particular discounter
- Wal-Mart - on towns in Iowa. His studies have concluded the following:
i. Stores that sell items that Wal-Mart doesn't sell rend to
do better after
the Wal-Mart opens, because of increased traffic into the community,
ii. However, stores that sell Items that Wal-Mart does offer tend
to suffer economically.
iii. Discount stores negatively, impact the retail trade
of neighboring communities.
iv. A typical Wal-Mart store in Iowa will generate $13 million
in sales in Its first year, of which only
$4 million comes from trade area expansion. The remaining $9 million
is diverted from existing businesses.
V. Stores within a 20-mile radius
of the new Wal-Mart show a 24 percent decline in
sales four years after the Wal-Mart opens,
a much more substantial economic decline than businesses
in communities of similar size with no Wal-Mart within 20 miles (these businesses' sales
declined by 11 percent).
b. Illinois Institute for Rural Affairs, Western Illinois University: The
Illinois Institute for Rural Affairs’ study of 15 Illinois communities
in which a large discount store opened between 1986 and 1989 reaches
conclusions consistent with those of Dr. Stone. However, it demonstrated
that large discount stores caused much more severe economic damage to storm
selling apparel. Furniture, home furnishings, food, lumber, hardware, paper
supplies, and health and beauty supplies.
This study also attributed the failure of the Wal-Mart store in Hearne,
Texas to the presence of other Wal-Mart stores within
a 3O mile driving radius of Hearne
- a situation similar to that facing Kent County,
where there are Wal-Mart stores and other national discounters
in Easton, Dover and other nearby larger towns and cities.
c. DuPage County, Illinois: An extensive study
conducted by the DuPage County (Ill.) planning department in 1992 on the
economic impact of commercial sprawl demonstrated that commercial sprawl
remit: in higher property taxes for local residents. The study concluded
that, by attracting regional shoppers (shoppers who come from outside
the community) who do nor pay local property taxes, new commercial development
that attracts regional shoppers actually costs local government more
money than it generates through the new development. To pay
for the increased demand for services such as police protection, water and sewer, roads and infrastructure local government
must raise property taxes. And, increased property taxes
disproportionately harm low-income households.
d. Real Estate Services Group: A study by the Real Estate Services Group
in Washington, D.C. demonstrated that a typical downtown commercial building
that has been vacated costs the community the following amounts each year:
- $125,000 in direct retail sales
- $70,125 in secondary retail sales
- $15,000 in salaries
- $6,000 in rents
- $625 in property taxes
- $5,600 in business profits
- $4,750 in bank deposits
- $3,400 in utility collections
- $13,414 in loan demand
-$2,000 in lost advertising revenues
Each of these major studies concludes, either directly and/or indirectly, that
commercial sprawl almost invariably causes more economic harm than good and
that it tends to displace existing jobs.
3. Potential impact of a new 100,000 square foot discount store
in Kent County: By examining the buying power of households in Kent
County and surrounding counties and comparing this total buying power to
the gross sales the proposed new store would likely generate, it is extremely
unlikely - virtually impossible - that the retail business proposed for
the Scheeler site can achieve economic viability without displacing at least
$10-12 million in sales from existing businesses. In addition, because of
the closer proximity of existing Wal-Marts and other discount stores in
nearby communities like Easton and Dover, it is unlikely tat a new 100,000
square foot discount store on the Scheeler site would be able to draw sufficient
number: of people from surrounding counties to deter this economic erosion.
In my estimation, the commercial use proposed for the Scheeler site would
cause severe economic damage to between 48-56 existing small. independently
owned businesses in Kent County- directly contradicting the Kent County
Comprehensive plan's intention to strengthen small businesses.
In summary, then, there are essentially two questions I have
addressed related to the proposed new development and whether
it would be permitted under Kent County’s Comprehensive Plan:
1. First, with regard to the Kent County Comprehensive Plan’s commitment
to "creat(ing) a business climate attractive to and supportive of small
family businesses: "Would a new Wal-Mart be conducive
to this son of business climate?
In my opinion, the answer is no; this proposed use would do serious economic
damage to Kent County’s existing small businesses and seriously impede
the County’s ability to stimulate small business growth.
2. Second, with regard to the Kent County Comprehensive Plan's commitment
to preserving the County's rural character and ". . .the
visual character, scale, and density of Kent County's existing
communities...; Would the proposed use reinforce or be supportive of the
County's rural character?
Again. in my opinion, the answer is no; a commercial building
of this size on this: site would do serious damage to the County’s
rural character.
hr its introduction, Kent County's Comprehensive Plan states that it ".
..requires far-sighted and steadfast leadership by public agencies to say 'NO'
to conflicting proposals without regard to personalities, to stick whit the
long-range view when it is attacked in the name of expediency or quick profit,
and to promote this view in all matters dealing wit the Comprehensive Plan."
The application by CLI Partnership to develop a 100,000 square foot commercial
building on the Scheeler site for use as a Wal-Mart appears to be providing
the first substantial test of Kent County's Comprehensive Plan Other communities'
comprehensive plans have faced similar tests. For instance, the U.S. Tenth circuit
Court of Appeals recently upheld Lawrence, Kansas' Planning Commission's
decision to deny permission for the proposed construction of a new shopping
mall outside the downtown area, citing the intent of the city's comprehensive
plan to revitalize the downtown and strengthen small businesses. in Hamilton,
Alabama, a local merchant successfully brought suit against the city' overturning
its decision to provide financing for a new commercial development outside
the downtown, basing his claim on Hamilton’s comprehensive plan's stated
goal of concentrating new commercial development in the city's traditional
commercial center.
To conclude, I believe that the commercial use proposed for the Scheeler site
is inconsistent with Kent County's Comprehensive Plan. Please let me know if
I can provide additional information for you as you evaluate CLI Partnership's
proposal.
Sincerely,
Kennedy Lawson-Smith
Director
Cc: Philip W. Hoon; Esq.
CHAPTER FIVE
SUMMARY OF STREAM RESOURCE CONDITIONS
(Extract from a Maryland Department of Environment Report
on the Choptank River Basin" page 23.
…………During more than three centuries
of European habitation, the streams of the Choptank River basin have been
subject to repeated clearing of all forests and elimination of many non-tidal
wetland areas via tax ditches. At present only about 5% of the basin
has been urbanized. As urbanization continues ifs outward sprawl in the
basin, further degradation of aqua tic resources is inevitable because
mitigation efforts are often unsuccessful (Schueler 1997) and can never
fully correct the many types of impacts associated with human disturbance.
This increased degradation of streams will at least partially offset progress
made toward restoring the living resources of Chesapeake Bay and its tributaries
Exhibit U - Maryland Department of Environment Report
The Box Stops Here
By Geneva Overholser
Sunday, October 31, 1999; Page B07
The death knell of the "big box" has sounded; They're banning them
in Rockville.
You know the big-box store-its square bulk encased in a bland unnameable substance,
possessing all the grace of a storage carton, beached in a vast ocean of asphalt-the
toast of 1980s and 1990s merchandising.
It's over.
Nothing could take this clearer than for the City of Rockville to cry, "Enough!"
Which it did one recent evening, when Mayor Rose Krasnow and Rockville's city
council passed a six-month moratorium. They're going to "take a serious
look" at the megastores, said the mayor, "and find out what the citizens
of Rockville want.
Up to now, it has seemed that the good citizens of Rockville wanted more-always
more--big boxes. At least it has seemed so to all who know Rockville mostly
as a thoroughfare called Rockville Pike.
what Washington's serene mall is to monuments, Rockville's clogged pike is
to the big box.
Krasnow said the pike is nearing its traffic "saturation" point "in
terms of people's willingness to shop there"--thus proving herself the
last elected official in America given to understatement. In our household,
the person who journeys to Rockville Pike racks up big points on the family-sacrifices
scale. I would happily take out the garbage- for 52 weeks
rather than navigate the pike.
The funniest part of Rockville's box moratorium is that developers proposing
the newest box--a 135,000-square-foot Costco-said this one would be architecturally
unobjectionable because it would be "largely hidden behind a ring of other
retail stores." It's the perfect Rockville Pike aesthetic: Build enough
awful boxes and more will be fine, because the older mammoths will hide them.
But now the fad is dying--and Rockville's glimpse of the light is not our only
proof Some planners are already puzzling over what to do with the box-filled
malls and strips once we've moved on to the next trend. How we'll "recycle
them," in the words of architect David Lewis, professor of urban studies
at Carnegie Mellon University, is a challenge for the next century.
One hint: Here and there across the country, developers are beginning to convert
some of the malls to more Main Street-like shopping areas.
Meanwhile, the real Main Streets are still succumbing to big boxism. One topic
at the National Trust for Historic Preservation's huge gathering here recently
was how to fight the big, suburb like buildings that drugstore chains are erecting
on prominent downtown corners.
Preservationists showed horror-story slides: a noble 1906 U.S. Post Office
building in DeKalb, 111., torn down for a Walgreen's; an 1876 Friends Meeting
house in Richmond, Ind., offed by a CVS. But they noted too that the chains
have begun sometimes to do the nobler thing: to convert old buildings, as CVS
has done here in historic Georgetown and in Lowell, Mass. Or to build new stores
that come up to the sidewalk, have windows at the street level, use bricks like
their neighbors and keep their parking out back. A new Rite Aid in Camden, Maine,
looks like three classic New England buildings side by side; yet inside is the
airy, spacious interior that the big chains want.
"If you accept standard, off-the-shelf; cookie-cutter design, you will
get that every time. if you don't, you'll get better," Ed McMahon, director
of land use programs at the Conservation Fund, told the National Trust folks.
Absent the pressure, though, the bad trends will persist. "Drugstores
are building the last generation's retail buildings," said McMahon--though
surveys show that 86 percent of respondents would rather shop in "a walkabout
town center," and that such stores earn more than stores in strip developments.
For example, said McMahon, the big Barnes & Noble bookstore in downtown
Bethesda, easily reached on foot or by bike, bus or subway, earned 15 percent
more last year than the big Barnes & Noble on-you guessed it, Rockville
Pike.
You can only wish Rockville's leaders the best in imagining the unimaginable-an
other-than-boxlike future for Rockville Pike. But here is one heartening thought
for them: Some future preservationist's fondest dream will be to take a Costco
or Target and lovingly freeze it in time--an irreplaceable symbol of an era
gone by.
For that monument, there can be no better site than Rockville Pike.