Fiscal and Economic Impact Assessment

Fiscal and economic impact analyses associated with development program proposed in the Conceptual Land Use Plan were performed by AMS Advisory Services, Inc.  The study area involves 26 parcels, of which two totaling 14.4 acres are owned by Meriden Economic Resources Group, Inc (MERG).  The redevelopment program is conceptual in nature at present, but for study purposes assumes the following:

retail development of 197,000 to 225,000 SF
restaurant space of 30,500 to 39,500SF
office space of 120,000 to 139,000 SF
rental residential space of 91,000 SF or 78 units
a 576-car garage and 1,284 surface parking spaces

Our analysis reveals that the proposed development would add $2.8 million in taxes annually to City of Meriden’s tax base (in today’s dollars).  Of this amount, $2.65 million would be real estate taxes.  The projected gross real estate assessment of the development is estimated at $92 million ($65 million net assessment) which would represent a 2.8% increase to the Grand List.  The $65 million taxable assessment would represent Meriden’s second largest taxpayer after the combined Meriden Square LLC and Partnership total of $76 million.  The present total assessment of the 33 acre site is just $2.6 million and generates just $289,000 in taxes a year. 

Projected incremental costs to the City of Meriden resulting from the development are estimated at $495,000 annually.  These costs are largely associated with incremental cost of public services including education and bond indebtedness due to the increases in population and students attributable to the development.  Based on analysis of the local community and data on multipliers for type of housing*, it is projected the development would yield an additional 133 residents and 11 new students.  The much larger commercial component of the development comprising 375,500 square feet of retail, restaurant and office space is expected to constitute $300,000 or 60% of the incremental cost of public services.

Thus in Net Direct Fiscal Impact terms, the development would represent an annual increase of $2.3 million a year to the City of Meriden.  In addition, the City Center Initiative is expected to generate at least $900,000 in one-time fees that include building permit fees, site plan and zoning fees, demolition permits, and fees associated with water and sewer hook-ups and inspection.

In conducting this fiscal impact analysis we obtained and examined information on Meriden’s property tax structure and assessment, municipal services and expenditures, building permit and zoning fees, school system enrollment and budget, and zoning issues.  This data was obtained from numerous City of Meriden sources including the following: City Clerk’s Office, Planning Department, Tax Assessor’s Office, Engineering Department, Treasurer’s Office, Zoning Department, and Building Department.


* Demographic Multipliers & approach provided in Development Impact Assessment Handbook, (1994 -Urban Land Institute) and University of Massachusetts, Donahue Institute Fiscal Impact of New Residential Development 2003.

Refer to Exhibit 1.0 and Exhibit 2.0  for a summary of our findings relative to the projected fiscal impact of the proposed City Center Initiative.