October 26, 1999

To: Town of Easton

14 S. Harrison Street

Easton MD 21601

From: John F. Ward

506 Diamond Street

Easton MD 21601

Subject: Moratorium Comments

Reference: Newspaper article: "Town seeks comments on big box issues" The Star

GENERAL COMMENTS:

The specific comments below are offered in the context of viewing the "Town of Easton, Maryland" as a public business in receipt of a request from a retail business seeking a town investment in a new enterprise.

In this view, the Town Council would function as the Board of Directors with the taxpayers of the town representing the "stockholders". The "Town" would be the basic asset developed by its citizens over the last 290 years. The "Town", like a corporation, also represents the ability to acquire new resources through its earned standing with financial and government institutions.

In a sense, any retail business, regardless of size, approaching the Town Council through the planning and zoning application process, is requesting some level of investment of Town assets or potential resources. In effect, to become a "partner" in the proposed retail business.

Looked at in this manner, the Town would address all applications from retail businesses with the usual references to site plan, zoning, environment, etc. and any "big box" classification in terms of floor area of X–thousands-of-square feet. In addition, it would be required to factually determine the potential for achieving a positive net return on the investment of town resources.

In this scenario, the following categories of application might emerge:

Category A

• Applicant business draws its required customer base from the local community (e.g., 10,000 market area population)

Category B

• Applicant business must draw required customer pool primarily from local and near-counties, (e.g., 40,000 market area population).

Category C

• Applicant business must draw required customer pool from a large multi-county region, (e.g., 100,000 market area population).

In this breakout, the Town of Easton would continue to focus on administering the Category A applications on behalf of the citizens and taxpaying stockholders of the town.

In dealing with Category B and C, the Town of Easton would need to address the merits of investing town assets in support of a retail business based on the potential magnitude and nature of a return on that investment. In some sense, the town could be seen as a business "partner" requiring a reasonable expectation of a valued payback. The town would be reaching out, beyond its normal local jurisdiction and defined responsibilities. It would be effectively playing a business-partner role, on behalf of the town’s citizens. It would be investing town resources, at some level of risk, in support of the applicant’s "beyond-the-town" business enterprise.

SPECIFIC COMMENTS

1. "Comprehensive plans shall be …
1. Q. "Is additional big box retailing necessary for the town’s present and future needs?"

1. No, there is no defined need for a "big box", per se.

1. Q. "How should the commission and council make the determination of what our citizens need in this regard?"

1. A specific "Town of Easton Retail Needs Statement" should be developed on the basis of citizen input. This would be a planning document outlining the type and scope of retail services and products, in generic terms, that are seen as priorty needs over the next 5 to 10 years.

1. Q. "Who defines the "needs"? Residents? How should their views be determined?"

1. A task group would be established. Membership would include representatives of all "buyer" segments of the town community. A draft "needs" document would be developed, prioritized, offered for public comment, approved by the Town Council, published and periodically updated as a reference document for prospective retail business applicants. A baseline of current retail business could be included. This document could serve as an informal "request for proposals" guide.

1. 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?"

1. Yes.

1. Q. "We have been told that Easton is a regional marketing center for the Mid-Shore. Is this a trend we wish to encourage or discourage?"

1. Easton must gain control over the retailing scene. It then can proceed to selectively encourage or discourage new entries, based on a rational plan responding to need and positive opportunities. The Town of Easton need not be the preferred target of choice of aggressive retail developers and wait passively for all future applicants.

1. Q. "If the town changes its infrastructure (roads) to accommodate current additional big box proposals, will those changes generate additional development pressures?"

1. Yes. The existence of a big box complex and required road network is a natural draw for new applicants seeking to share in the established customer flow.

1. Q. "What are the current big box retailers in town?’

1. Depending on the size definition used, they may include Giant, Wal-Mart, new Acme.

1. Q. "At what point does the presence of big box detract from Easton’s quality of life/"

1. A big box will detract from Easton’s quality of life the moment it is perceived by the town citizens as being imposed upon them for the sole benefit of the developing entity.

1. Q. "What mechanisms can the town use to give clarity to developers regarding big box requirements?"

1. See item 1.3. Also, a guideline document should be issued outlining the town’s expectations regarding the requirement for a positive net return on the town’s investments in support of new retail developments of any category.

1. Q. "If the town decides we want big box retailing, what limitations do we want to impose upon developers as far as location or other physical characteristics of the big box?"

1. Use existing town regulations, augmented by appropriate input from other communities and planning agencies, such as the Fort Collins material. Develop new regulations where necessary to achieve reasonable outcome.

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

2.1-2.6

7. Q. "What, if any, costs related to infrastructure improvements should the town require developers to pay?"

1. The developer of a Category C, and perhaps a Category B, retail business should be required to contribute resources of sufficient value and on a schedule that will assure that the town receives a positive net return on the investment of its public resources. For example, credits might be given for annual fees assessed for support of downtown (1) infrastructure maintenance and improvement, (2) retail small business loan pool. Other credit might be awarded for direct issue of high quality big box stock shares to the town.

3. "Comprehensive plans shall encourage economic growth."

No comments

4. "Comprehensive plans shall provide for ‘the prevention of environmental pollution’ and ‘the stewardship of Chesapeake Bay …."

No comments

5. Comprehensive plans shall contain ‘adequate provisions for traffic.’"…

No comments

6. "Comprehensive plans shall provide for "the promotion of good civic design and arrangement."
4. Q. "What is the current life span for big box, particularly in light of the emerging alternate technologies for commerce?"

1. It is reported that the current anticipated life span is on the order of 5 to 10 years.

4. Q. "What mechanisms should be imposed in the event that a big box becomes vacant?"

1. Require bonding that would cover the vacating and subsequent non-use of a big box. The bonds should be sufficient to acquire the building, rehab or modify it for business sale or demolish the structure and restore surrounding site to an reasonably aesthetic and environmentally compatible state for future use. A maximum allowable "vacant period" would be stated in the governing documents.

4. "Specific questions to be addressed by big box retailers."

THE END