Proposed legislation in New Hampshire would have a significant negative impact on retail development and redevelopment over 75,000 square feet.

HB 639, if adopted, would implement a state wide requirement that a “comprehensive impact study” be undertaken for every site plan application involving at least 75,000 square feet of retail. The devil is in the details and there are many details in this bill that would add significant delays, costs and risk to the review process. This legislation warrants careful attention due to its sweeping and negative impacts. Key provisions include:

1. A comprehensive impact study is required for all retail projects (new and renovated).
2. The area to be studied includes the applicant’s market area and an area extending 5 miles in all directions from the project.
3. Fiscal Impacts to be studied include the positive and negative effects on: existing retail operations; supply and demand for retail space; economic vitality of downtowns; employment, including projected net job creation and loss; retail wages and benefits; captured share of existing retail sales; sales revenue retained and reinvested in the impact area; municipal revenues generated; municipal capital, service and maintenance costs, including costs of roads, and police, fire, rescue, and sewer services; the amount of public subsidies, including tax increment financing, public road traffic congestion and safety; and public water utility sewage disposal, and solidwaste disposal capacity.
4. Environmental impacts to be studied include: air quality; wetlands; ground and surface water; scenic and natural beauty; the quality of residential neighborhoods in the impact area including the effects of noise, lights, traffic, and safety; recreational and historic sites; significant plant and wildlife habitat and wildlife travel corridors; rare and irreplaceable natural areas; public rights for visual or physical access to a shoreline; and the implementation of municipal planning goals.
5. Applicants for site plan approval must deposit $40,000 with the Office of Energy and Planning to cover the costs of the review.
6. The planning board must give written notice to all persons “residing in the municipality within 5,000 feet of the proposed development.”
7. As part of its decision the planning board must issue a written finding of whether a large scale retail development will likely have undue adverse impact or no adverse impact.
8. The planning board may approve the project only if it determines that there is likely to be no undue adverse impact. The phrase “undue adverse impact” is defined to mean that the estimated overall impact on the factors to be studied outweigh the estimated overall positive effects and that the estimated negative effects of at least 2 of the factors listed in 3 above, outweigh the positive effects on those factors.

The legislation poses a serious threat to retail development and redevelopment. The legislation is being studied as of today and we will keep you posted of its status as the bill moves through the legislative process.