Community Impact Review - New Jersey [proposed]

This bill would require cities to conduct a regional economic impact analysis before approving stores larger than 130,000 square feet that contain more than 25,000 stockkeeping units (i.e., items for sale) and derive more than 10 percent of their total sales from the sale of nontaxable merchandise (i.e., groceries).

The analysis would assess 1) the extent to which the proposed store would capture a share of the region's retail sales; 2) how it would affect retail vacancy rates; 3) its impact on wage and benefit levels; 4) the cost of providing  public services to the new store; 5) its impact on existing retail businesses; and 6) its effect on the number of vehicle miles residents travel for shopping. 

Under the legislation, the analysis must weigh the impacts not only on the host municipality, but also on adjacent municipalities and the surrounding county.  The analysis would be conducted by an independent entity chosen by the city and paid for by the developer.  Once the analysis is complete, the city would be required to hold a public hearing.

The legislation also requires the municipality to notify neighboring towns of the proposed development.  After reviewing the project, each adjoining community has the option of issuing a "resolution of intermunicipal concerns."  These concerns must then be addressed by a board composed of representatives of each of the surrounding towns.

The host city may approve the project only if it determines that the store would not cause "substantial detriment to the general welfare of the adjoining municipality based on the specific areas of intermunicipal concern raised" and that it would not impair the "intent and purpose of the master plan or zoning ordinance of the adjoining municipality."

Neighboring communities may appeal the host town's decision to a statewide Intermunicipal Impact Advisory Board.

A downside of this bill is that it is very narrow in scope. Only superstores that sell groceries, such as those operated by companies like Wal-Mart, Kmart, and Target, would be subject to the law.  Big-box stores that do not carry groceries, such as Home Depot, and those that have a limited number of items for sale, such as Costco, would not be affected.  Nor would supercenters that are smaller than 130,000 square feet, which includes many Wal-Mart and Target supercenters.