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MARKET IMPACT AND COST/BENEFIT ANALYSIS

Beverly Hills, California: Barney's/Saks Fifth Avenue Study. TNDG evaluated potential economic impacts of the Saks Fifth Avenue and Barneys New York retail projects prior to their development in the City of Beverly Hills.

The Saks project involved the expansion of the former 145,000 square foot store by 55,000 square feet, and development of and additional 46,000 square foot commercial/retail structure. Barneys New York, not previously located in the City, developed a 108,000 square foot retail store on Wilshire Boulevard.

The study analyzed three major issues: The potential impact of the Saks and Barneys proposals on the City's existing retail and service establishments; the projects' potential fiscal consequences (municipal revenues and costs) to the City of Beverly Hills; and the amount and nature of new employment that would be generated by the projects.

The demand analysis examined several distinct market segments to determine their respective propensities to support shopping facilities in the City of Beverly Hills including: City residents, residents of neighboring communities, residents of affluent communities in the regional (southern California) market area, area daytime employees, and tourists.

Santa Maria, California: Analysis of Impacts of Proposed Wal-Mart. TNDG was retained by the City of Santa Maria to prepare an analysis of the potential market impacts of a Wal-Mart store proposed for development in the City.

The analysis addressed the following major issues:

  1. the extent to which local and regional retail demand would be sufficient to support the Wal-Mart without negatively impacting the City's existing retail base;
  2. whether the proposed zoning change (the proposed site was zoned for residential uses) was justified from a market perspective; and
  3. the potential impacts of the project on the City's redevelopment project area (in another portion of the City).

In addition to identifying the impacts of a Wal-Mart location within the City, the study also evaluated the potential impacts of Wal-Mart locating at alternative sites outside of the City (but within competitive proximity to Santa Maria's retail base).



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The Natelson Dale Group, Inc.
24835 La Palma Avenue, Suite I
Yorba Linda, California 92887
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