Updated: Oct 18, 2020
Hillwood Contracted the Barrett Planning Group to conduct the fiscal impact analysis for the HLC. Note that the original report was revised with a supplemental letter that was part of the 9/9/20 planning board meeting packet. The supplemental letter incorporated the feedback provided by the peer reviewer and town chief assessor. A summary of the modified report findings are as follows:
The analyst examined assessed valuations for comparable properties in Londonderry (FW Webb, UPS Logistics, FedEx Ground Facility), derived a square foot assessment and applied that to the Logistics square footage.
The 2.6 million square foot facility will carry an assessed value of $252.7 million.
The facility will generate annual local municipal and school property taxes of $5.1 million at Hudson’s current tax rate.
The facility will incur annual local costs of $503,700 including $225,900 for police, fire and inspection services; $32,300 for Public Works (roads, drainage, Plowing, Maintenance) and $64,500 for Administration, Assessing, & Other costs.
The facility will generate annual net revenues after expenses of $4,620,800
The facility will provide 1,400 direct jobs, generating $81,536,000 in direct wages
The facility will support approximately 833 construction jobs.
The Planning Board hired a consultant (Russell Thibault) to peer review the Barrett Planning Group Study. A summary of Mr Thibault’s peer review below is a combination of his original report and his statements at the 9/9/20 planning board review. Between his original peer review report and the PB meeting, many of his comments were incorporated into the fiscal impact analysis. A revised peer review report was not available at the time of this writing.
The “scope is appropriate, techniques are generally accepted, and conclusions are well supported.”
Concluded that it’s a net positive fiscal impact to the town
Estimated revenue: The report’s methodology is generally reasonable with the exception of the following points
It is conventional to subtract the existing revenues a site is generating, from the projected revenues emanating from the new development. This calculation is missing in this report.
The report presumes that there will be no negative impact on the value of abutting residential properties or a diminution in value on a broader geography in the town, as a result of issues such as traffic, noise, air quality, etc.
County taxes should be excluded
The report utilizes a modified average (proportional) cost methodology which is one of the accepted methodologies for estimating fiscal impact of proposed developments. The average cost methodology’s fundamental premise is the proposed development will have a proportionate cost impact relative to other non-residential developments in the community.
Department heads (fire, police, public works) when interviewed had just learned about the project and were unable to provide appreciable inputs.
Much of the estimated $81.5 million in direct wages will not accrue to town residents
Planning Board Meeting
Emphasized that the majority of the jobs and income revenue, to include construction will not go to Hudson residents
No construction company in Hudson would be able to handle the scale of this project
The revenue estimate is likely reasonable but we don’t know what the net income will be because it doesn’t factor in the current revenue from the Green Meadow Golf Course. The town cost estimate seems inadequate since the departments were not able to provide inputs to associated cost increases. The analysis should include the estimated residential property tax rate reduction resulting from this proposal. The analysis does not include any potential tax breaks Hillwood may negotiate with the town
Hillwood’s Fiscal Impact Analysis:
Town of Hudson Peer Review: