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Fiscal Impact Analysis for Proposed Lowe's Development in Hadley
Preliminary analysis of available information shows that both a "Yes" or "No" vote would be a
financial plus to the Town. In fact, there is just a $5,000 difference in
the net gain between a "Yes" and a "No" vote!
| Tax Income | "Yes" to Rezone
(store set back) | "No" to Rezone
@ 210,000 sf
(Developer's figures) |
| Lowes Tax Revenue | 250,000 | 300,000 |
| Residential Tax Revenue | 0 | 50,000 |
| Subtotal Tax Income | 250,000 | 350,000 |
| Town Costs (Outgo) |
| Increased Municipal Services for Commercial | 140,000 | 180,000 |
| Increased Municipal Services for Residential | 0 | 65,000 |
| Subtotal Town Costs | 140,000 | 245,000 |
| Tax Revenue-Town Costs | $110,000 | $105,000 |
NET FINANCIAL BENEFIT
"Yes" vs. "No" Vote: $5,000
Findings
1. Both a "Yes" and a "No" vote generate positive cash flow for the town
2. A full build out under existing zoning (as shown by developer) is estimated to generate only $5,000 less than a rezone — including the 20 homes that would be built behind the store
Assumptions
1. Cost of municipal services for commercial calculated from "Mass. Fiscal Impact Tool" by EOEA
2. Cost of municipal services for residential at 130% of tax revenue, per Hadley Finance Committee
3. A "Yes" vote would result in 181,000 sf of commercial with no residential development
4. Developer's plan under current zoning includes 20 homes on 1-acre lots to be built later
5. Commercial tax revenue figures from developer, confirmed and adjusted by Mass. FIT
6. Residential tax revenue estimated at $2,500 per year per home
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