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Economic Impact Analysis: A Case Study

Studies and Research   Dec 1, 2002

by Civic Economics, December 2002

This study examines the local economic impact of two locally owned businesses in Austin, Texas—Waterloo Records and Book People—and compares this with the economic return the community would receive from a Borders Books store. The study finds that spending $100 at Borders creates $13 worth of local economic activity, while spending $100 at the local stores generates $45 in local economic activity.

The difference is attributed to three factors: a higher local payroll at the independent stores (because, unlike Borders, none of their operations are carried out a an out-of-town headquarters office); the local stores purchased more goods and services locally; and the local stores retained a much larger share of their profits within the local economy.

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Fiscal Impact Analysis of Residential and Nonresidential Land Use Prototypes

Studies and Research   Jul 1, 2002

by Tischler & Associates, July 2002

Sprawling shopping centers cost taxpayers in Barnstable, Massachusetts, more than they produce in revenue, according to this analysis. The study compares the tax revenue generated by different kinds of residential and commercial development with the actual cost of providing public services for each land use. The study found that big-box retail generates a net annual deficit of $468 per 1,000 square feet.

Shopping centers likewise produce an annual drain of $314 per 1,000 square feet. In contrast, the study found that “specialty retail,” a category that includes small-scale neighborhood and downtown businesses, has a positive impact on public revenue (i.e., it generates more tax revenue than it costs to service). Specialty retail produces a net annual return of $326 per 1,000 square feet.

The two main factors behind the higher costs for big box stores, shopping centers, and fast-food outlets, compared to traditional neighborhood and downtown retail stores, are higher road maintenance costs (due to a much greater number of car trips per 1,000 square feet) and greater demand for public safety services.

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