Economic and Fiscal Impact Analysis of the Proposed Development on New Haven Road
Prepared for:
The Mayor and Council of the City of Harrison - The new development will generate a demand for $316,377 in additional City
services annually, based on the average cost of providing these services citywide. - The proposed development has the potential to generate $394,063 annually in new
revenue for the City. A significant portion (80%) of this revenue will come to the City
under the auspices of the proposed Tax Increment Financing (TIF) district greement,
and can only be spent on capital improvements related to proposed development.
This will likely free some funds from the City’s general fund that could then be spent
elsewhere. - The revenue to be generated by the proposed New Haven Road development
exceeds the cost of providing city services by $77,686 annually, if the City is able to
take full advantage of its TIF potential. - The development will generate a positive net fiscal impact for the City if the
expected TIF revenue is at least $5.6 million over the entire life of the TIF. - The actual additional cost to the City of providing these services will depend on the
extent to which the services can be provided using existing City personnel,
equipment and infrastructure and without decreasing the quality of existing services.
The relatively large size of the proposed development suggests that significant new
costs are likely. While it might be reasonable to assume that some portion of the
additional service demand might be absorbed for some types of services, it might be
equally reasonable to assume that the costs for providing some portion of the new
services will exceed the current citywide averages. As such, the $316,377 is a middle
range estimate of service costs. - The City’s cost of providing services to the new development is not directly covered
by TIF revenue. At the maximum level of TIF financing, the proposed development
only generates about $77,500 in general fund revenue for the City, leaving an annual
operating deficit of nearly $240,000. The TIF arrangement amounts to a trade-off
between the funding of the City’s infrastructure needs and its operating costs. - It is expected that the proposed Wal-Mart SuperCenter will increase the City’s real
estate valuation by $14 million and generate $8 million in annual wages, though
these will be offset partially by the loss of valuation and wages at existing Harrison
retailers who will lose some of their sales to Wal-Mart. - Approximately $11.5 million of the City’s projected retail sales for 2007 will be
shifted to the new Wal-Mart store (plus or minus $2.25 million). Projected sales for
existing grocery stores are expected to be slightly lower than 2003 levels, while
those of general merchandise stores are anticipated to be slightly higher than in
2003. - Overall, Wal-Mart should generate a net increase in retail sales in the City of 17
percent: 8 percent through the recapture of purchases by Harrison residents that are
currently going outside the City, and 9 percent through bringing to the City
purchases by nonresidents that are currently made elsewhere.
“The Economics Center has proven to be a great partner and an excellent resource to Cadmus. Their knowledge about the local community and economy—coupled with their analytic capabilities—have been important components of our evaluation and very well received by our client. We look forward to our continued collaboration with the Center.”- 
George’s major focus areas are regional economics and human capital. With his colleagues at the Economics Center, he continues to apply lessons learned in those fields to economic development and workforce development.
“We needed to communicate the value of our institution in the local community and the Economics Center’s economic impact analysis helped us accomplish that goal. They were very easy to work with and met our expectations. We will certainly utilize their services for economic analysis in the future and would recommend them to others.”- 
Jennifer’s work includes analyzing individual and household decision-making, factors that influence as well as the economic and fiscal impacts of those decisions. - 
Jeff has worked with leaders from the public, private, and non-profit sectors, designing and implementing economic development and research projects in response to diverse community issues.
“We're very pleased with the results of this study. Often times, when people think about arts and culture organizations, they do not take into account the economic benefits that come with the educational and entertainment benefits. That was one of our main goals when commissioning this project." 
“The Economics Center brings analytical expertise and valuable insights that helps our clients to develop and, then, communicate key messages. The research team understands we are in a world increasingly dependent on data for decision making. The Center is an important partner in our business and a valuable resource to our community.” - 
“As a research-based organization, Cincinnati Works relies heavily on the type of data and analysis the Economic Center provides. Their ability to analyze economic trends and assess the impact they have on job seekers and workforce development is valuable to the work that we do here at Cincinnati Works.” 
“The TIF Model is intuitive, easy and flexible for report to the Township Trustees to help them understand the resources that Deerfield Township may have available. The Trustees really appreciate having a tool that can inform planning for the future, beyond the upcoming year.” 
“The Center worked to understand our community and our needs. They developed a set of custom economic indicators for Newaygo County, MI. We believe that this information is critical for expressing unique assets of our community and in making important decisions for our economic vitality.” -