A Regional Shopping Mall For Meridian, Idaho
A Summary Of Community Impacts
September 1980
Camiros, Ltd., Chicago, Illinois
INTRODUCTION
Because of its strong growth potential and excellent highway linkage, the City of Meridian, Idaho has been identified as a prime location for a regional shoppingmall serving the Boise Metropolitan area. Development
proposals for two different sites along the I-BON corridor are currently before the City for evaluation --one at
Eagle Road, known as the Eagle Road Mall, and the other at Meridian Road, known as the Treasure Valley ShoppingMall. Dayton Hudson Properites, Inco has retained Camiros,
Ltd. of Chicago, Illinois to prepare a comparative analysisof the impacts of the two shopping mall proposals on the City of Meridian. This document summarizes the findings
of the analysis.
The location of the two shopping mall sites relative to the Boise Metropolitan area can be seen on Figure 1. The site of the proposed 570,000 square foot Treasure Valley Shopping Mall is located at the existing Meridian Road/1-BON interchangeo The proposed 765,000 square foot Eagle Road Mall is not located at an existing I-BON inter�change. However, transportation authorities are presentlystudying the alternatives for an additional interchange to be located between Meridian Road and the existing I-BON/I�180N interchange.
This document discusses four sets of impacts resultingfrom the location of a regional shopping mall within Meridian. They are: (1) impacts related to community growth and develop�ment, (2) fiscal impacts upon local government, (3) the
attitudes of local residents regarding the effect of the mall upon the community and their shopping patterns, and (4) the
impact upon area employment. �
Figure 1 Metropolitan Location
SUMMARY OF FINDINGS
The comparative analysis clearly indicates that the Treasure Valley Shopping Mall would have a more positiveeffect and less �negative impact on the City of Meridian than would the Eagle Road Mall. A 765,000 square foot shopping mall at Eagle Raod would create large operating
cost burdens on the City. It would also require majorexpansion of public facilities in an area which is plannedto remain a low-density rural buffer between Meridian and Boise. Its location and size would likely eliminate the
prospect of securing a downtown shopping mall for Boiseo
The mall of 570,000 square feet located at the Treasure Valley site (Meridian and I-80 Interchange) would make use of the existing, in place, public service facilities.
Operating costs of the proposed Treasure Valley ShoppingMall would be of an amount easily handled by the City. There would be no capital improvement cost burden at all on the City.
The Treasure Valley proposal offers a prudent and sensi�
ble means to securing future tax revenues for Meridiano It is sized to provide full service regional shopping center convenience yet still provide room in the metropolitanmarket for a shopping mall project in downtown Boise. In short, the Treasure Valley Shopping Mall embodies none of the problems of the Eagle Road proposal while contributing to the City's long-run fiscal stability and reinforcing the plan�ning policies of the community.
LOCAL AND REGIONAL GROWTH IMPACTS
A development the size of a regional shopping mall can greatly influence the growth trends of its host community in a number of different ways.~ A regional shopping mall rep�resents a major generator of activity which draws other development into the area. The character of an area which contains a light or moderate load of traffic will changesignificantly if impacted by the high traffic volumes genera�ted by a regional shopping mall. Furthermore, the utilityand public service improvements required by a regional shop�ping center can provide the infrastnucture (roads, sewers, water lines) needed to spawn further development.
The development of either the Treasure Valley ShoppingMall or the Eagle Road proposal would significantly in�
fluence local and regional growth trends. However, the impacts of two alternative developments are decidedly dif�
ferent.
Local and Regional Growth Impacts
FINDINGS � In contrast to the Eagle Road proposal, the Treasure ValleyShopping Mall would conform to existing planning policiesof the City of Meridian.
A comparison of Figures 2, 3 and 4 identify the
of on the City � s 1 �
The Treasure Valley Shopping Mall would:
respect the Urban Service Area Policy; allow for the
retention of the rural buffer area separating Meridian
and Boise; aid in the redevelopment of the Old Town area;
and would not interfere with industrial development along
the Union Pacific tracks to the east of Meridian's
central core.
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FIGURE 2
Existing Policy Plan
RESIDENTIAL AREAS 11111111 REGIONAL SHOPPING CENTER ~
COMMUNITY SHOPPING CENTER ~
MIXED USE AREAS ~
t N
INDUSTRIAL REVIEW AREA ~lft11WI
MAJOR ARTERIAL TECHNICAL INDUSTRIAL t MINOR ARTERIAL REVIEW AREA 0 Y2 1 MILE 2
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rem~ r'hN'f ,.c.
ttW1-no.JI~ikl .
Mj't; of ~COlh~ty.
FIGURE 3 Impact of Treasure Valley Mall on Existing Policy Plan N
MAJOR ARTERIAL RESIDENTIAL AREAS ~ ~~~iwl RURAL AREA INDUSTRIAL -~ tmrm- t
MIXED USES ~ 0 Y'2 I MILE 2
camiros
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FIGURE 4 Impact Of Eagle Road Mall On Existing Policy Plan
MAJOR ARTER IAL ~
RESIDENTIAL AREAS Em*fflffl
INDUSTRIAL AREAS mE.:�
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1 MILE
camiros
The development of the Eagle Road site would contradict
each of these policies.
By being located on the existing central axis of the community,
the Treasure Valley Shopping Mall would better serve the re�
(
sidents of Meridian.
The large concentration of schools, banks, public officesand other institutional uses along the existing centralaxis (defined as the area surrounding First Avenue/Meridian
Road between Fairview Avenue and I-BON) creates a logical
and traditional traffic pattern which the Treasure Valleysite fits into wello It allows for the continuation ofof multiple purpose trips for local residents.
By comparison, the location of the Eagle Road site would
by far less convenient for residents of Meridian.
� The goal of achieving a more self-sufficient community ~1ill( be better served by the Treasure Valley Shopping Mall. The development of the Treasu~e Valley mall will rein�force the existing functional relationships which make
Meridian a community separate from other parts of theurbanized Boise metropolitan area. The retail tradeprovided by the Treasure Valley mall would provide theconsumer goods needed to make Meridian self-sufficient
commercially.
Figure 4 illustrates that the Eagle Road proposal wouldcreate a new activity center oriented as much to theresidents of western Boise as it would to the residents
of Meridian.
The Eagle Road proposal would not help Meridian become
a distinct, self-sufficient community, but rather onlyserve to link Meridian more closely to the urbanized
Boise metropolitan areao
8
� The Treasure Valley site does not intrude upon any residential
neighborhoods. The Eagle Road site would drastically impact
a number of existing residential subdivisions.
Land areas around the Treasure Valley mall site are now vacant or in very marginal use. This offers the oppor�tunity to plan the entire immediate area for compatible
.-M---Residential neighborhoods will not be af
s1te is wedged among existing and platted
residential subdivisions. These residential areas will be severly impacted by the activities induced by a regional mall as well as the spin-off development the
mall would attract.
� The development of the Treasure Valley Shopping Mall would not eclude the commercial redevelopment of downtown Boise.
successful commercial revitalization of downtown Boise is an important regional planning objective.
*
A market feasibility study prepared for the developerof the Eagle Road site conclude-s that the proposed765,000 square foot Eagle Road mall would preempt all other planned regional shopping centers in the Boise
area including the downtown Boise project.
con rast, the smaller 570,000 square foot Treasure Valley mall, located some additional distance west of Boise, would leave room for the development of a
shopping mall in downtown Boise.
FISCAL IMPACT
The purpose of the fiscal impact analysis is to determine what effect the two shopping mall proposals would have on the financial status of the City of Meridian. It compares the cost of providing municipal services to the two shopping mall
proposals with the tax revenues received from them.
Two types of costs are identified in this analysis. The first type, capital improvement costs, are one-time costs in�volved with service facilities. Among these are costs related to the upgrading or expansion of sewer treatment facilities, street and road construction or improvements, and the acquisi�
tion of equipment or facilities for the fire and police depart�ment. The second type, operating costs, refer to the costs of providing daily public services. Typical operating expensesinclude the cost of operating police and fire equipment and facilities as well as the cost of employing police and fire department personnel.
Two types of revenues are also identified in the fiscal impact analysis. 110ne-time revenues .. are lump sum revenues paid by property owners during the course of the development
of a property. Typical one-time revenues include water and sewer hookup fees. The other type, 11annual revenues .. are
recurring revenues. Typical annual revenues include property tax revenue and sales tax revenue.
In many instances the revenues received from providingpub1 i c services are offset by the costs of provi ding those services. For example, the revenue received from sewer treatment changes is used to pay the operating expenses and capital improvement costs associated with the sewer treatment facility. Because these revenues and costs offset each other, they do not have any real net effect on the financial status of the City of Meridian and, consequently, are not included
in this analysis.
FINDINGS � The projected net revenue of the two shopping mall proposalsis about the same.
A comparison of the projected net revenue as illustrated
in Table 1 indicates that the revenue benefit of the two shopping center proposals will be about the same. Total one-time revenue of the Treasure Valley ShoppingMall is $6~375 higher than the Eagle Road proposal.
-
As a result of the property tax freeze currently in effect in the State of Idaho, the City of Meridian will not receive any net revenue from any development.The tax freeze limits the amount of property tax revenue
used to cover operating expenses to the amount of revenue generated in 1979. Since all of the property tax revenue generated by the City of Meridian is used to cover opera�ting expenses, no net revenues will be generated under current conditions.
Although it appears that modifications in the tax freeze
legislation are inevitable, it is impossible to predictthe nature of those modifications or when those modifi�cations might take place. Consequently, p~ojected revenues have been conservatively estimated based on current revenue conditions.
� The Treasure Valley Shopping Center would produce far less public capital improvement costs than the Eagle Road proposal.
Because the public service improvements needed to
accommodate a regional shopping mall are already in place at the Treasure Valley site, no major capitalimprovements would be associated with the TreasureValley mall. Asl~illustrated in Table 2, the projectedcapital improvement cost of the Treasure Valley mallu $]) .825.
~
Table 1: Total Net Revenue""' City of Meridian
Eagle Road Proposal
-0�-0�
-0�
$ 62,140
45,300
Eagle Road Proposal
$ 11 ,825 610,000
$621,825 -f
$ 41,865
126,000
-0�
Revenue Source
Annual Revenue
10 Property Tax Revenue
2. Sales Tax Rebate Total Annual Revenue
One-.Time Revenue
1.
Water Hookup Fees
2.
Sewer Hookup Fees
Total One-Time Revenue
Table 2: Total Costs -City of Meridian
Treasure Valley
Shopping Center
-0�-0�
-0�
$ 46,300 67,515
J1113.815
Cost
Capital Improvement Costs
1.
Police Department
2.
Fire Department
Total Capital
Improvement Costs
Annual Operating Costs
1.
Police Department
2.
Fire Department
3.
Quick Response Unit
Total Annual Operating Costs
Treasure Valley
Shopping Center
$ 11 ,825
-0�
$ 11,825
$ 26,020
-0�-0�
In contrast, the Eagle Road proposal would produce$621,825 in projected capital improvement costs. The higher costs_assQciated wi~h_the Eagle Road proposal are the result of the increased fire department-costs.Since the Eagle Road site is located a considerable
distance from the existing fire stations, a new fire station would be needed along Eagle Road to serve the development. Other fire department capital improvementsassociated with the Eagle Road proposal include the up�grading of the existing fire station, the purchase of a new fire truck, and the purchase of communications
equipment.
The projected capital improvement costs identify onlythose costs that the City of Meridian would be obligated to finance. Additional public or private capital im�provements associated with the Eagle Road proposal in�
clude: the extension of sewer and water service; the construction of an 1-SON/Eagle Road interchange; and major reconstruction of Eagle Road between Fairview and Overland Road.
The developers of the Eagle Road project have stated publicly that they would agree to finance some of the capital improvement costs associated with their pro�posal which the City of Meridian would otherwise be obligated to finance. Specifically, the developershave offered to provide: a new fire station along EagleRoad, a new fire truck, and two new police cars. Assuming that such improvements are provided to the satisfaction of Meridian's public officials, approxi�
.. mate,. $185,000 in capital improvement costs would still be ob 1gated to the City of Me1 idiau.
� The Treasure Valley Shopping Center would generate far less annual public operating costs than the Eagle Road proposalo
Because the Treasure Valley site has an excellent location with respect to the provision of public services, the pro�jected annual operating costs associated with the Treasure Valley mall are significantly less than those of the Eagle Road proposalo As illustrated in Table 2, the projected annual operating costs of the Treasure Valley mall are $26,000 while the Eagle Road proposal would generate $167,865 in annual operating costs.
The construction of a new fire station along Eagle Road,
which would be needed to serve the Eagle Road develop�ment, is the primary cause for the higher annual opera�ting costs associated with the Eagle Road proposal. The addition of a second fire station would necessitate the formation of full time fire protection staff to supple�ment the existing all volunteer force. Because the Treasure Valley mall site is located close to the existing
fire station, the development of the Treasure Valley Shop�ping Center would not require the addition of a full time fire protection force.
� The development of the Treasure Valley Shopping Center offers
the City of Meridian the opportunity to secure future tax
revenues while not overburdening the City's budget.
Since the current property tax freeze also freezes the City's operating budget, any significant increase in service demand caused by new development could over�burden the City's budget. However, in light of inevi�table modifications in the existing tax freeze legisla�tion, municipalities should not pass up the opportunity to secure future tax revenueso
The Treasure Valley mall provides this opportunity. It is possible for the City to finance the $26,020 of annual operating costs associated with the Treasure Valley mall
under the current fiscal conditions. In addition, when modifications to the tax freeze legislation are made, the development will provide a significant amount of revenue to the City of Meridian
0
In contrast, the Eagle Road proposal could not be accom�modated under the existing fiscal constraints. The $167,865 in annual operating expenses produced by this development would be virtually impossible to finance
given the City's revenue limitations. Consequently, while both developments would provide future tax revenue, the Eagle Road proposal would surely breach the existing budget of the City of Meridian.
The development of the Treasure Valley mall would not pre�clude the commercial redevelopment of downtown Boise.
SURVEY OF COMMUNITY ATTITUDES
The attitude of local consumers regarding the location, size and store mix of a shopping mall is an important factor in determining the impact of a proposed mall upon a community.To determine these attitudes a survey was conducted utilizinga representative sample of Meridian consumers. The attitudes and ideas expressed by these local residents are far reachingand clearly define a direction for Meridian's future. The care taken in the selection of the survey participants has insured that these people accurately reflect the overall com�position of the residents of Meridian.
Community Attitudes Toward Existing Shopping Facilities in Meridian
�The existing level of retail trade in Meridian cannot
FINDINGS
satisfy the demand for consumer goods.
�
0~sidents do not and will not shop in the Old Town area r the majority of their non-convenience purchases.
�
Resident consumers do not think the mall will alter the way they shop at those Meridian stores they support at present.
�
Residents favor the development of a shopping mall in Meridiana
�
Residents of Meridian want to build a more self-sufficient community.
Community Attitudes Pertinent To Regional Shopping Mall Location
FINDINGS � The residents of Meridian want to keep from becoming part of the urbanized Boise metropolitan area.
The development of the Eagle Road mall would be detrimen�tal to the preservation of the rural buffer area separa�ting Meridian from Boise. In contrast, the Treasure Valley mall would reinforce Meridian's image as a separate community.
� Meridian residents desire to reduce the travel distance of
their vehicle trips to increase energy efficiency and im�prove convenience.
The Treasure Valley mall would accommodate this desire by its location on the existing central axis of the community. This location would allow for easy trip com�
binations, thereby improving convenience and saving energy. The Eagle Road proposal is located a considerable distance from the central axis of the community and would be less convenient for the residents of Meridian.
� The protection of residenti.al neighborhoods from intrusion by commercial or other non-residential uses is important to local residents.
The development of the Eagle Road proposal would encroach
significantly on adjacent residential neighborhoods. The Treasure Valley mall is not located near any existing residential area.
EMPLOYMENT BENEFITS
The development of a regional shopping mall in Meridian would significantly improve employment opportunities for local residents. Three types of employment benefits would result from the proposed development. The first type of employment benefit would be the jobs created to staff the stores, restaurants and other mall tenants. Secondly, manyconstruction jobs would also be generated by mall development.
The third type of employment benefit is an indirect result of the new mall. Many of the new jobs will be held by residents of Meridian and vicinity. These people will have mall-created income to spend in the community for goods and services. As a result, additional jobs will be created in other stores and offices of Meridian and vicinity to provide these goods and services. This 11multiplier11 effect on jobs, while a complex concept, is the third employment related impact of the mall.
Employment Benefits
The Treasure Valley Shopping Center will provide 1600 permanent mall jobs.
The Treasure Valley Shopping Center will provide 835 one year construction jobs"
The total annual wages attributable to the Treasure Valley Shopping Center is projected to be approximately$18,451,925 per year.
Total wages attributable to the Treasure Valley ShoppingCenter during the one year construction period is $19,765,315.
Although the larger Eagle Road mall would generate approximately 25 percent more jobs, development of the centrally located Treasure Valley mall would be more convenient for Meridian workers.
Given the low unemployment rate in Ada County, the
large number of jobs which would be provided by either proposal would probably satisfy Meridian's employment needs for some time to come.
The development of the Treasure Valley mall will reinforce
the existing functional relationships which make Meridian a community separate from other parts of the ubranized Boise metropolitan area.
Boise Development Collection
