Retail Stores No Bargain

Towns across America are discovering that big box retail costs comes with big costs, not the least of which is the destruction of acres of arable land.

Barnstable, MA

The town of Barnstable, MA recently completed a study where it 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. They also found that fast-food restaurants cost their town $5,168 per 1,000 square feet.

See study (PDF).

St. Albans, VT

Simiarly, the Vermont Environmental Board found that a proposed Wal-Mart would cost the town 2.5 times what it brought in. See original conclusion, or read highlights below:

Vermont Environmental Board, 10 V.S.A. Chapter 151
Re: St. Albans Group and Wal-Mart Stores, Inc., Application #6F0471-EB

Key findings of the Board include:

a. On an overall basis, the public costs of the proposed project are projected to outweigh the public benefits. The ratio is projected approximately to be more than 2.5 dollars of public cost for each dollar of public benefit. By "public costs" and "public benefits," the Board refers to those costs which the proposed project will cause to affected governments or those benefits which will accrue to the governments.

b. Two important findings of the Board concerning the public costs are:

1. The proposed project is projected to result in a net job loss for the Franklin County region.

2. The credible evidence is that the proposed project will have an adverse impact on the tax base of the affected municipalities due to competition with existing retail businesses.

c. Based on what has occurred with other Wal*Mart stores, the proposed project is likely to be a magnet for other development in the vicinity.

1. The Applicants contend that such development, so-called "secondary growth," will be an unquantified, but net positive public benefit.

2. This application is for a large project with significant potential to cause secondary growth.

3. The Board therefore needs specific projections as to the total growth and rate of secondary growth to be caused by the proposed project and the anticipated public costs and benefits associated with such growth. The Applicants have not provided this information.