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Store Size Cap and Community Impact Assessment – Bennington, Vermont
4/7/05 UPDATE - Wal-Mart and an Ohio developer paid a team of people to gather enough signatures to force a referendum on this ordinance. They spent heavily on print and radio ads, direct mail, and "push polls," and ultimately won the vote. For more details see "Wal- Mart Money Trumps Land Use Process in Bennington, Vermont."
In January 2005, the town of Bennington, home to 9,200 people and located in the southwest corner of Vermont, enacted the following ordinance. It bans stores over 75,000 square feet in one commercial district and 50,000 square feet in the rest of the town. It requires proposals for stores over 30,000 square feet to submit to a community impact review conducted by an independent consultant chosen by the city. The cost of the review is to be paid by the developer.
The review will weigh the number of jobs created by the store versus jobs lost at existing businesses, the store's impact on the cost of public services, and any tax revenue losses resulting from a decline in the economic viability of the downtown or other established commercial areas.
The analysis will also estimate how much revenue generated by the project will be retained and re-directed back into the local economy. Locally owned stores are likely to fare better on this measure than national chains, because they generally devote a larger percentage of their revenue to local wages and buy more goods and services from nearby businesses.
Under the ordinance, city officials may approve stores over 30,000 square feet only if the review determines that they will not have an undue adverse impact on local wages, housing costs, or the ability of the city to provide services.
Town officials said the measure was needed to ensure adequate review of the economic and community impacts of large-scale retail development, protect the viability of Bennington's existing commercial areas, and maintain competition by preventing a single retailer from dominating the local market.
The ordinance was prompted in part by Wal-Mart's interest in abandoning its existing 50,000-square-foot outlet in Bennington and building a 150,000-square-foot supercenter about a mile away. The town Select Board adopted a temporary moratorium on big-box construction that effectively blocked Wal-Mart's plans and gave officials time to draft and adopt this ordinance.
More:
Bennington, Vermont's Large Scale Retail Bylaw - January 24, 2005
A) Limitation of Floor Area.
1) In all Zoning Districts, except the PC and CB Districts, no single retail store (including, but not limited to, a retail establishment as defined in Article 2), whether located in a single building, combination of buildings, single tenant space and/or combination of tenant spaces, shall exceed 50,000 (fifty thousand) gross square feet of floor area in the aggregate.
2) In the PC and CB Districts, no single retail store (including, but not limited to, a retail establishment as defined in Article 2), whether located in a single building, combination of buildings, single tenant space and/or combination of tenant spaces, shall exceed 75,000 (Seventy - Five thousand) gross square feet of floor area in the aggregate.
3) This section shall apply to new retail stores and expansions of existing retail stores.
4) If standards contained in this Section conflict with any other Section of these regulations, the most restrictive shall apply.
B) Community Impact Study. In all Zoning Districts except the CB District, no new or expanded single retail store (including, but not limited to, a retail establishment as defined in Article 2) located in a single building, combination of buildings, single tenant space and/or combination of tenant spaces, that exceeds 30,000 (thirty thousand) gross square feet of floor area in the aggregate, shall be permitted, unless the Development Review Board finds that the project will not have an undue adverse impact on local wages, housing costs or on the ability of the town to provide municipal services and facilities through the diminution of property values and/or tax revenues resulting from the loss of economic viability of existing commercial enterprises. To this end, upon receipt of an application to the Development Review Board for such a retail store, the Town shall retain, at the applicant=s expense, a consultant to perform an evaluation (Community Impact Study) of the projected costs and benefits to the community resulting from the project, including:
1) projected costs arising from the demand for and required improvements to public services and infrastructure, including roads;
2) value of improvements to public services and facilities to be provided by the project;
3) projected tax revenues to be generated by the project;
4) projected impact on property values in the community (especially those located in the VC, CB, UMU and OA Districts) and the potential loss or increase in municipal tax revenues resulting from the proposed project;
5) projected net job loss or creation caused by the project and the resulting potential loss or increase in tax revenues; and
6) estimate of how much revenue generated by the project will be retained and re-directed back into the economy of Bennington.
No application for a retail store shall be deemed complete until 60 days after the applicant has submitted to the Town the following: a) funds sufficient to pay the estimated fee for the Town’s consultant to perform the Community Impact Study; and b) all information deemed necessary by the Town’s consultant to complete the Community Impact Study.
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