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News :: Miscellaneous
PETOSKEY'S LOCAL BUSINESSES FIGHT MASSIVE RETAIL DEVELOPMENT Current rating: 0
28 Mar 2001
Development needs to be judged by objective
standards that fully account for the impact it has
on existing quality of life. Unregulated
development undermines local economies and
adds to urban sprawl.
See also:
http://www.newrules.org
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Here's The Story
Current rating: 0
29 Mar 2001
Sorry, a formating problem caused the story to be dropped. This should fix things.

Located on Lake Michigan, the small town of Petoskey in northern
Michigan draws thousands of visitors every year. They come for the
spectacular scenery and for an opportunity to experience what many
communities have long since lost: a vibrant downtown.

Renowned for its distinctive character and century-old buildings,
downtown Petoskey is more than a quaint destination for tourists. Its a
place that serves the everyday needs of residents. There's a grocery
store, hardware dealer, bookshop, florist, and pharmacy. All are locally
owned.

A major big box retail development under consideration in a neighboring
township, however, has threatened downtown Petoskey's future. "I fear
that this may be the end of the downtown as we know it. We will have
more seasonal businesses, and lose Penney's in the downtown, the
hardware store will be stretched, and so will this bookstore," contends
Julie Norcross, owner of McLean & Eakin Booksellers.

Norcross has joined other downtown merchants and residents in an effort
to block the 400,000 square foot retail development in nearby Bear Creek
Township. The development is slated for 90 acres currently zoned
residential and farm-forest. It would include several big boxes, as well
as smaller-scale chain stores. Combined, these stores would be larger
than the entire downtown. The city and surrounding county are home just
25,000 residents.

An economic impact analysis supplied by the developer contends that the
region can support an additional 500,000 square feet of retail space
with little or no impact on existing retailers. The developer argues
that the new center will serve as a regional shopping destination,
attracting shoppers from a wide area and therefore having only a
marginal impact on the downtown.

Studies in Iowa and elsewhere, however, indicate that the ability of new
superstores to draw regional shoppers is short-lived at best. In
tracking Wal-Mart's impact on Iowa towns, Dr. Kenneth Stone has found
that the host community's overall retail sales do increase initially as
a result of attracting shoppers from a larger area.

After a few years, however, sales level off and then begin to decline.
One in four of the host towns actually ended up with a smaller retail
sales base than they had prior to Wal-Mart's arrival. In the end, most
of Wal-Mart's sales came, not from regional shoppers, but directly at
the expense of existing local retailers, many of which were forced to
close.

What may prove to be even more of an economic concern, according to
Norcross, is the impact the development will have on tourism. "Why would
people travel to see the same place that they have in their own
backyard?" she asks.

That's one of several major issues raised by Gourdie, Fraser &
Associates, which was asked by Bear Creek Township to review the
developer's economic analysis. "Changing the retail focus from unique
specialty retailers. . . in traditional, walkable shopping areas to
national chains in power centers. . . may contribute to eroding the
qualities that attract tourism dollars in the first place," the review
notes.

The retail development conflicts with the goals outlined in the
comprehensive plans of all three affected communities---Petoskey, Bear
Creek, and adjacent Resort Township---as well as the county's master
plan. All discuss the need to control growth and protect the area's
rural nature.

The debate over the development has revealed a strong need for regional
cooperation on development issues. Although the impact of the retail
complex will be felt in three communities, the region has no mechanism
for joint review of large-scale developments. Instead the decision rests
entirely with the Bear Creek Township Board, which must re-zone the land
before the developer can proceed.

-- To learn more about regional review of large-scale developments,
check out the Cape Cod Commission and Vermont's Act 250 on the New Rules
web site at http://www.newrules.org/retail/impact.html.
Brought to You By
Current rating: 0
29 Mar 2001
This originally appeared in The Home Town Advantage Bulletin
(http://www.newrules.org/hta/index.htm), a bimonthly email newsletter
from the New Rules Project (http://www.newrules.org) of the Institute for
Local Self-Reliance.
See also:
http://www.newrules.org