UNITED TRUST FUND

601 Brickell Avenue, Suite 1300

Miami, Florida 33131

Telephone (305) 358-7711

Facsimile (305) 358-4002

 
 

Mayor and Council

Town of Easton

14 S. Harrison Street

Easton, Maryland 21601

Re: Big Box Moratorium Issues

Gentlemen:

United Trust Fund is in the real estate development business. We have been working for over a year on a retail development involving two big boxes in Easton. Our comments on the issues the Town has raised follow.

 

1. Comprehensive plans shall provide for "the coordinated, adjusted, 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."

IS ADDITIONAL BIG BOX RETAILING NECESSARY FOR THE TOWN’S PRESENT AND FUTURE NEEDS?

There are presently several big box stores in Easton. They apparently are heavily patronized by Town and County residents. Acme is expanding and other stores will need to expand or locate in or around Easton in response to consumer demand, which is the best measure of "need".

How should the Commission and Council make the determination of what our citizens need in this regard?

This determination should include area residents and businesses. All input should be considered. Elected and appointed officials have a duty to reach their own conclusions about the Town’s interests, not just count comments.

Who defines our "needs?" Residents? How should their views be determined?

The Town’s interests must include the interests of Town businesses, as well as people and businesses located near the Town. If the Town doubts the representative quality of that input, consider commissioning a scientific survey.

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? Can design and landscaping standards answer some of the concerns of the public?

Some of the concerns expressed really relate to growth in general. Big box retailing is the present focus of those concerned about growth in general. Clearly, design and landscaping standards can and do address concerns specific to big box retailing. The Town’s new zoning provisions are very detailed. In addition, most developers and retail users are very willing to accommodate reasonable design features driven by local preferences and concerns.

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?

Easton can influence the availability of responses to demand for retail, but it cannot control the market. Easton is part of the region. Those who are concerned about the negative effects of automobile use should understand that retail located near population concentrations is "smart growth" because it minimizes the length of automobile trips that would otherwise occur.

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?

The primary source of retail development pressure is residential growth.

At what point does the presence of big box retailing detract from Easton's quality of life?

When it is not managed or controlled with attention to quality of life concerns. Big box retailing directly responds to some quality of life concerns, such as the increased availability of goods at competitive prices.

What mechanisms can the Town use to give clarity to developers regarding the big box requirements?

After the adoption of the 1999 zoning amendments, which would be better with some technical improvements, the main area requiring clarity is the Comprehensive Plan. It should be as clear and unambiguous as possible since the Zoning Ordinance incorporates the Comprehensive Plan by specific reference.

2. Comprehensive plans shall provide for "the wise and efficient expenditure of public funds."

WHAT ARE THE FISCAL BENEFITS AND DETRIMENTS TO THE TOWN WHICH WILL BE ASSOCIATED WITH ADDITIONAL BIG BOX RETAILING?

Big box users do not seek handouts and more than pay their way. Direct benefits are increased tax base and employment base, which more than offset the small need for public services, especially compared to residential development which puts a comparatively high demand on public services.

What are the tax benefits of additional big box retailing versus its costs both hidden and obvious?

Town, County and State real estate taxes

Town personal property taxes

State sales taxes

Can the Town quantify the demand that additional big box retailing will place on public safety services?

With a reasonable degree of accuracy.

Are the fiscal benefits and detriments associated with additional big box retailing different from other types of development, i.e. residential, industrial? Are they greater or less?

The answer varies depending on the Town’s investment in a given project or category of development. Generally, residential would be the most demanding and costly to the Town.

What fiscal impacts will additional big box retailing have on Talbot County?

Increased County real estate taxes. Additional income taxes from new jobs for County residents.

What, if any, costs related to infrastructure improvements should the Town require developers to pay?

Costs directly caused by a development.

3. Comprehensive plans shall encourage economic growth.

WHAT ECONOMIC IMPACTS WILL ADDITIONAL BIG BOX RETAILING HAVE UPON THE PRIVATE SECTOR ECONOMY IN EASTON?

More jobs

More competition for employees

More opportunity for advancement in employment

Very large construction projects – many millions of dollars for contractors, subcontractors and suppliers

Residents who prefer to shop locally will have more productive time to spend with their families

Direct property value impacts on adjoining or nearby property?

This is very site specific. Depending on the specifics of the project and the site, it could enhance or have no effect on property values.

Effects on other retailing, both in Downtown Easton and elsewhere?

There is no material competition between most big boxes and downtown Easton retailers. The most significant competitor would be Wal-Mart, which has been in Easton for several years. The downtown has weathered Wal-Mart very successfully. Easton downtown retail is focused on specialty and niche stores with excellent customer service and events/attractions.

Existing shopping centers?

There will be increased competition among stores with similar products. That will be good for customers.

Effect on unemployment? Are retailing jobs the kinds of jobs Easton wants to encourage at this point? Are there sufficient persons in the labor pool to provide employees?

Unemployment is not static. It goes up or down with the economy. Retailing jobs, especially at big boxes, include full-time, part-time, short-term and career opportunities. The Talbot County Economic Development office has concluded that there is a lot of potential for increased employment within Talbot County among people now working outside the County and those interested in improved wages, benefits and conditions.

4. Comprehensive plans shall provide for "the prevention of environmental pollution" and the "stewardship of the Chesapeake Bay and the land is a [sic] universal ethic."

WHAT ENVIRONMENTAL EFFECTS WILL ADDITIONAL BIG BOX RETAILING HAVE UPON THE ENVIRONMENT IN AND SURROUNDING EASTON?

Big box retailing has no unique impacts on the environment. All large buildings and groups of smaller buildings present similar issues. All can be carefully designed and environmentally sensitive. Smart growth means putting uses in appropriate places and avoiding sprawl.

Is additional big box retailing in Easton consistent with stewardship of the Chesapeake Bay and the land?

Assuming compliance with applicable environmental rules, big box retailing is not unique with respect to stewardship. Many uses are more demanding on our resources than big boxes.

What is the effect of surface water run-off on the Tred Avon River? Is it different for additional big box retailing than for other types of development? More harmful? Less harmful?

Surface water run-off is a problem for all activities, including agriculture. There is nothing unique about big boxes in this regard. The keys are appropriate controls and ongoing management.

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?

Whatever standards are enacted they will (or at least should) be based on the latest scientific thinking about surface water issues. All users, including, but not limited to, big boxes, should comply.

What effect will big box retailing have on noise, illumination, air quality, and visual characteristics of the Town?

Based on the new Zoning amendments, and the Town’s "floating zone" approach, these concerns are addressed and can be minimized.

5. Comprehensive plans shall contain "adequate provisions for traffic." All or almost all of the land upon which additional big box retailing can currently be located in Easton is on or closely adjacent to Route 50, Route 322 or both.

CAN ROUTE 50, ROUTE 322 AND THE SECONDARY ROAD SYSTEM ADEQUATELY HANDLE TRAFFIC GENERATED BY ADDITIONAL BIG BOX RETAILING?

Yes, with improvements that are already needed, plus any that are driven by new development, including, but not limited to, big box retailing.

How much traffic will additional big box retailing generate? Can the Town and the public obtain more accurate information regarding volumes of traffic?

Public data, traffic experts and some retailers can provide useful information.

Most or all of the potential additional big box retailing sites 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? Does the County have any plans, or any willingness, to widen or otherwise upgrade these roads?

The County has some ability and willingness to work with the Town on road improvements.

In the same way, many secondary roads in Town, e.g. North Washington Street, Chapel Road Glebe Road will be similarly affected. Does the Town have the means or the desire to change those roads?

The traffic issues are not caused by big boxes. The traffic issues already exist and will grow due to many factors, mainly including increased population.

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?

The future needs a lot of attention. Unintended or unanticipated consequences are not completely avoidable, but they can be minimized by careful planning.

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?

The State and County have a big stake in Easton’s successful operation. They will cooperate and that cooperation should be managed proactively.

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?

There is nothing unique about the impact of big box retailing on traffic. If a comparable group of smaller retailers or houses are developed, the same issues will have to be addressed.

Should the Town adopt minimum standards of service for affected road systems for future development proposals in the Town?

It should be considered, but such standards should not be arbitrary, inappropriate to the setting or generally unattainable.

6. Comprehensive plans shall provide for "the promotion of good civic design and arrangement." Professor Diriker stated at the Growth Symposium that downtowns functions as places to connect peoples with goods and services they need or want. As times have changed, the people, the goods and the services have changed and will continue to change in the future.

WILL THE BUILDINGS IN WHICH BIG BOX RETAILING IS LOCATED PROVE TO BE FLEXIBLE IN MEETING CHANGING NEEDS AND DEMANDS? DOES THE TOWN WANT TO ENCOURAGE/PERMIT/PROHIBIT THIS PARTICULAR MEANS TO CONNECT PEOPLE WITH GOODS AND SERVICES?

Big boxes are generally flexible structures that lend themselves to reuse. The most important factor in successful reuse is a desirable location. Big boxes are relatively easy to subdivide and convert to multiple uses. Common examples of successful reuses include other big box users, athletic facilities, subdivided retail and telephone call centers.

What is the current life span for big box retailing, particularly in light of the emerging alternate technologies for commerce?

While e-commerce will have an impact, many big box retailers, such as Lowe’s supply many products that require immediate availability, which will not be changed by e-commerce.

 

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?

See above. In addition, the best mechanism for use of property is the marketplace. Governmental "mechanisms" often are not effective. Owners of big boxes such as Lowe’s are experienced and effective in accomplishing their sale and reuse. Such results are driven by self-interest.

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?

These questions are interesting, but too academic. The real driver of development is demand. The questions should ask about ratios of current uses. Despite all the talk about retail development, there is no reason to believe that all or even a large portion of currently zoned commercial land would be developed at one time.

7. As suggested by Margaret Pickall, Chairman of the Planning Commission, we have added specific questions to be addressed by big box retailers:

What is appealing to retailers about Easton?

Location, market demand, demographics.

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?

To some degree perhaps. It depends on the retailer and the store. To achieve the efficiency demanded by the market, big box retailers depend on size and layout, which may not be attainable on given sites.

Thank you for your consideration. Please contact me at (305) 358-7711 if you have any questions.

Sincerely,

 
 

Howard Crossan, Vice President and

Director, Development and Construction