ABSTRACT
This chapter discusses how to determine whether a new development will be a long-term asset or a long-term liability. When developers present their cases for project approval, they invariably claim that building their development will enrich the tax base, increase local trade, create new jobs and investment opportunities, and generally stimulate the local economy. What they never reveal are the spillover or hidden costs of the development. These costs have both economic and noneconomic impacts. Many communities are currently embracing the belief that no growth is the best policy for maintaining a sound municipal economy. The levels of public service that actually are delivered by a local government only rarely are in direct response to a measurable public demand such as that encountered in the private sector. Where market mechanisms such as pricing, propensity to consume, and advertising combine to establish the required quantity of goods and services.
