After many meetings and contacts with other agencies, organizations and coalitions who are addressing some of the Cape’s infrastructure issues, it became apparent that there was a lack of information on the economic effects of large commercial retail establishments on our community.

SPGC became involved in the review process of some retail commercial projects that were analyzed by the Cape Cod Commission, our regional regulatory authority. At that time there were weaknesses in the regulatory review process, in that there were no benchmarks, nor actual data requested that would appropriately determine the actual economic effects of a large retail commercial development on our communities beyond the additional taxes to be paid. SPGC was influential in urging the CC Commission to create a technical bulletin that defined other issues that effect our economy, such as pay scales, benefits offered, and transfer of sales. An economic development bulletin has been created as a direct result of our existence.

SPGC firmly believes that a community is made economically healthy due to the number of locally owned businesses and the existence of local residents who serve as both consumers and employees. It is the local businesses who provide “dividends” to the local community, as they channel their money back into the community by purchasing local merchandise, local services and employing local personnel. The culmination of all these money channels creates a healthy economic, some would say sustainable, community.

Considering the fact that most of the new commercial development on Cape Cod in the past 10 years consisted mostly of large retail (chain) stores, and seeing that there was a dearth of information regarding the economic effect of these businesses on our community, the SPGC sought to fund economic research that would compare and define the economic differences between a locally owned retail business and a “foreign” owned retail business.

Funding was provided by the Cape Cod Economic Development Council, and matched on a one- to-one basis by local businesses, organizations, chambers and individuals.

FXM Associates was selected to conduct the research. Due to unavailable data (see the executive summary) it was impossible to define existing businesses in the County as locally owned or non-locally owned. Therefore the research proposition was modified to address the economic effect of regional and national “chain stores” vs. independent or single owner stores on the community.

The results of this study are invaluable to communities interested in maintaining a healthy local economy. Many have asked the question “Now that we know this, what can we do about it?” SPGC suggests there are many applications for this data: those engaged in economic development in their communities, and helping to write local comprehensive plans could use this in determining what types of businesses are desirable. Those interested in redeveloping our downtown centers should examine this report and apply its findings to their efforts when accommodating developers and tenants. Individual developers may also use this information when determining which tenants they would like to attract. Our planning departments and boards may choose to get creative with specific zoning. For example, there is a community in the southwest that created an Independent Business Investment Zone in response to a clearly defined vision of redevelopment in a downtown area. In another case, West Palm Beach has limited “Main Street” development to 2,500 square feet. If a business chooses a larger floor plan, they need to indicate why they need more space, as Main Street development is to serve the general neighborhood, and if a business can demonstrate that not more than 50% of their business will come from regional areas, the increase in square footage is approved. There are areas in tune to supporting local communities through positive planning efforts

It is our opinion that there is much work to be done, and many places where this information is useful in helping to determine the future economic health and welfare of our communities. We urge our town management and leaders to look beyond just the issue of increasing the tax base for your individual town, and evaluate the entire economic impact of future commercial projects on your community. Without such holistic analysis, we are doing our local communities a disservice and destroying the very backbone that keeps our communities alive and vibrant: our local businesses. We are burdening our taxpayers with deferred costs from nonexistent health care benefits, as well as driving our residential workforce away.

SPGC would like to recognize Barnstable County and the receipt of Cape and Island license plate funds, without whose financial support this study would not have materialized. We also would like to acknowledge the efforts and unending determination of Frank Mahady, principal of FXM Associates, whose persistence and resolve drove the completion of this project.

In addition to the CCEDC grant, matching funds were contributed by the following businesses,
individuals, and organizations. The Smart Planning and Growth Coalition is grateful for their
support and foresight in believing that economic research will ultimately help improve long term
economic opportunities on Cape Cod.

For more information on economic impacts on communities, visit: gotcommunity.org.

Read Economic Impact Survey