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July 2, 1999
Mr. Jeff Trulick
U.S. Army Corps of Engineers, Baltimore District
P.O. Box 1715
Baltimore, Maryland 21203-1715
Fax: 410-962-4698
Re: Mills Corporation, Arundel Mills
Project, Application number 98-60874-10
Dear Mr. Trulick:
Please accept the following comments on
the development called "Arundel Mills," proposed by the Mills
Corporation of Arlington, Virginia (Application number 98-60874-10).
The Baltimore Regional Partnership
("the Partnership") requests that the entirety of the proposed
actions, including parcel development and local, State and federal roadway
improvements be assessed together, rather than segmented into pieces. The
segmentation of environmental assessments of federal actions is prohibited
by law.
The Partnership requests that the U.S.
Army Corps of Engineers takes no action on the related wetlands permit
application, and instead cause a full and complete environmental impact
assessment to be performed.
The potential benefits and environmental,
economic and social costs of the project have not been adequately
assessed. The Partnership believes it is premature to make decisions
sanctioning some of the environmental impacts required by the
development proposal without a full assessment of cumulative effects of
reasonable foreseeable future actions.
By definition ("super regional
mall") and by design, at build-out this project will represent one of
the largest single development projects in the history of the region.
The public perception of the permitting
process is split into: cynicism – "this is a done deal, behind
closed doors"; or naivete – government agencies scrutinize the
whole project before allowing construction to commence. Neither of these
perceptions are accurate: the U.S. Army Corps of Engineers can use its
authority to cause the cumulative effects of the project in its entirety
to receive the scrutiny it warrants.
The Baltimore Regional Partnership is
composed of the Citizens Planning and Housing Association, Baltimore Urban
League, 1000 Friends of Maryland, Environmental Defense Fund, and the
Chesapeake Bay Foundation. Collectively, these organizations represent
tens-of-thousands of citizens of the region which would be impacted by
this development.
Sincerely,
Hank Goldstein, Executive Director

Appendixes: 2 pages
APPENDIX
Some effects which have not
received adequate scrutiny
TRAFFIC
If built, the Mills project would add at
least 75,000,000 vehicle-miles-traveled to the region per year, based
on the developer’s projected target market and projected customer
visits.
There is a shortage of
"entry-level" workers in Anne Arundel County. Arundel Mills
would have to draw its workers from long distances, ensuring that traffic
and, and most likely congestion, increases. Neither the developer nor Anne
Arundel County government have plans to provide transit to the proposal
site.
The developer calls Arundel Mills a
"super regional mall." This designation refers to how far away
customers will be drawn from. "Super regional" widens the net
out to about fifty miles in every direction, ensuring that traffic, and
most likely congestion, would increase.
ECONOMICS
The proponents of the project assume a
financial windfall for Anne Arundel County. According to sources in the
County Executive’s office, most of the taxes generated for the County by
the mall would be dedicated to pay for the bond that the County issues in
order to build roads for the mall.
The U.S economy is currently experiencing
a historically high rate of consumer spending. Consumer spending is the
metric for determining supportable retail space – any downward
fluctuation will increase the devastation of supportable retail space in
the region. This would result in more consumers driving further
distances to shop at Arundel Mills, and more abandoned retail space in the
region.
OPPORTUNITY COSTS
Neither the Anne Arundel County Council,
nor the Executive’s Office have performed a cost/benefit analysis to
determine economic impacts of directing investments in infrastructure to
other projects.
The bond issue for this project limits the
County’s future borrowing capacity for other worthy projects and
investments in infrastructure.
INADEQUACY OF THE PERMITTING PROCESS
The projected benefits of the project
include future phases – office space and residential components – not
only the shopping mall. Yet, the permitting process evaluates traffic and
congestion one phase at a time. The advertised benefits are greater than
the analyzed costs.
If the mall is built, surrounding
jurisdictions will experience tremendous negative impacts – loss of
retail sales and gains in traffic and congestion – yet they have no
voice in the permitting processes.
Except for assessment of the future value
of real property, inputs to the analysis of projected income to the
County, projected increase in VMT, trip generation, employment, and
"spin-off" development have been supplied solely by the
developer. No independent analysis of costs and benefits have been
performed on any facet of the proposed project.
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ECONOMIC IMPACT -- ARUNDEL MILLS
MALL |
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DRAFT |
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Revenue per year |
State |
Anne Arundel |
Howard |
Harford |
Carroll |
Baltimore County |
Baltimore City |
Entire Region |
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Sales Tax (1) |
23,800,000 |
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23,800,000 |
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Income Tax (2) |
1,575,000 |
787,500 |
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2,362,500 |
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Property Tax (3) |
187,938 |
2,300,000 |
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2,487,938 |
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Total Revenue |
$25,562,938 |
$3,087,500 |
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$28,650,438 |
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Costs per year |
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Debt Service (4) |
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1,960,000 |
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1,960,000 |
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Opportunity Cost (5) |
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1,680,000 |
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1,680,000 |
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Loss of property tax (6) |
165,910 |
469,755 |
1,006,774 |
151,140 |
193,980 |
69,254 |
918,490 |
2,975,301 |
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Loss of income tax (7) |
1,575,000 |
236,250 |
267,750 |
47,250 |
63,000 |
15,750 |
157,500 |
2,362,500 |
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Loss of sales tax (8) |
23,800,000 |
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23,800,000 |
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Total Costs |
$25,540,910 |
$4,346,005 |
$1,274,524 |
$198,390 |
$256,980 |
$85,004 |
$1,075,990 |
$32,777,801 |
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Net Revenue |
22,028 |
(1,258,505) |
(1,274,524) |
(198,390) |
(256,980) |
(85,004) |
(1,075,990) |
(4,127,363) |
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Other Costs, Not Quantified |
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Higher interest rate for AA County's
future bond issues; Loss of credit-worthiness due to approaching
borrowing capacity |
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Cost to State for road maintenance,
air pollution abatement; cost to neighboring counties for road
maintenance. |
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Notes |
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Assumes all sales at Arundel Mills
are "captured" from other retail establishments in the
region |
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(1) Developer's projected annual
sales x 5% |
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(2) Assumes 3,000 Employees x
$15,000 per year x (State at 3.5%); (AA County at 50% of State) |
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(3) Source for AA County: newspaper
article quote from County ED Office |
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(4) PV of bond ($28,000,000) * 7%
per year |
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(5) PV of bond ($28,000,000) * 6%
per year, i.e., what the bond money would earn if was sitting in a
bank |
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(6) Based on loss of supportable
space |
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Prepared by Hank
Goldstein |
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(7) For simplicity, assumes all
workers live in AA County |
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Baltimore Regional
Partnership |
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(8) Developer's projected annual
sales x 5% |
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410 385-2910 |
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