increase in crime. Studies of the total economic impact on cities and towns has shown that retail
development costs cities more in public services than it generates in revenue. While retail created a net
tax loss, office and industrial development, as well as some types of residential, produced a net benefit.
National retailers publish site selection criteria for their stores mandating certain features. A
2004 MIT study published the site selection criteria for a number of national retailers. The minimum
population requirement within a 5 mile radius for these national retailers starts at 100,000. The
population in a 5-mile radius of the New Scotland commercial zone is only 55,149 (2008). The
population would have to almost double to meet the minimum required by these retailers.
A market feasibility study was completed that demonstrated the current limitations on
development based on demographics and shopping patterns in the Town and surrounding areas. The
study shows that a retail store designed to draw on a “regional” population would not be viable in the
Town of New Scotland for two reasons: 1) the population level in the draw area is insufficient; and, 2)
competition from surrounding retail regional drawing stores has over saturated the market. The
population in this area would have to be more than double to support a store of 100,000 square feet
which would translate into approximately 18,000 new homes. The study also showed that there are
simply too many other regional drawing stores within a regional draw area (15-minute drive) to sustain a
regional or super-regional store in New Scotland. An analysis of the potential for a new grocery story
showed that the New Scotland commercial zone could support from 16,000 to 46,000 sq. ft. of
additional grocery store space.
A retail shopping center (total square footage of center, not one retail store), which could
include a grocery store and other retail stores, must be limited to the size of a neighborhood center and
therefore capped at 100,000 sq. ft. The population would need to increase by another 10,000 people Page | 14