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INDUSTRIAL ECONOMICS, INCORPORATED Measuring Economic Effects of Coastal Zone Conversion Permits PREPARED FOR Economic Effect Work Group S eptember 11, 2018 PREPARED BY Leslie Genova Industrial Economics, Inc. Review of S t at ut ory


  1. INDUSTRIAL ECONOMICS, INCORPORATED Measuring Economic Effects of Coastal Zone Conversion Permits PREPARED FOR Economic Effect Work Group S eptember 11, 2018 PREPARED BY Leslie Genova Industrial Economics, Inc.

  2. Review of S t at ut ory Language • S ections 7014 and 7015 added in August 2, 2017. INDUSTRIAL ECONOMICS, INCORPORATED

  3. S ect ion 7014 Conversion Permit An application for a conversion permit made under subsection (a) or (b) of this section must be in writing on a form approved by ecretary and must include the items listed in § 7004(b) and the S § 7005(a) of this title, the items required by regulation promulgated under this chapter, and all of the following items to be considered in assessing a conversion permit application: 3 INDUSTRIAL ECONOMICS, INCORPORATED

  4. S ect ion 7014 (cont inued) 1. The … economic effect of the existing or previous use. If the application is for a subsequent conversion permit, the S ecretary of Baseline the Department of DNREC has t he discret ion t o direct the applicant to provide information on the … economic effect of any of the previous uses at the site. 2. The … economic effect of the [alternative or Effect of additional heavy industry use or bulk product Action transfer activity]. 3. The net … economic improvement [inherent in Incremental the alternative or additional heavy industry use or bulk product transfer activity] as compared t o Effect/net t he most recent heavy indust ry use engaged in change at t hat sit e. 4 INDUSTRIAL ECONOMICS, INCORPORATED

  5. S ect ion 7004 (b) In passing on permit requests, the S ecretary of DNREC and the Control Board shall consider the following factors: 2. Economic effect, including the number of jobs created and the income which will be generated by the wages and salaries of these j obs in relation to the amount of land required, and the amount of tax revenues potentially accruing to state and local government. 3. Aesthetic effect, such as impact on scenic beauty of the surrounding area. 4. Number and type of supporting facilities required and the impact of such facilities on all factors listed in this subsection. 5. Effect on neighboring land uses including, but not limited to, effect on public access to tidal waters, effect on recreational areas and effect on adj acent residential and agricultural areas. INDUSTRIAL ECONOMICS, INCORPORATED

  6. S ect ion 7005(a) • … All requests for conversion permits under § 7014 of this title for [a heavy industry use site seeking an alternative or additional heavy industry use or for a bulk product transfer facility]… must be in writing and must include: (1)a Evidence of approval by the appropriate county or municipal zoning authorities; b. A detailed description of the proposed construction and operation of the use; and c. An environmental impact statement. (2) The S ecretary of the DNREC shall hold a public hearing … • The S ecretary of the DNREC shall then, if he or she determines that § 7004 or § 7014 of this title applies, reply to the request for a permit within 90 days of receipt … 6 INDUSTRIAL ECONOMICS, INCORPORATED

  7. Definit ions Needed • Existing or previous use • Economic effects • Job created • Income created • Tax revenues • Net economic improvement INDUSTRIAL ECONOMICS, INCORPORATED

  8. Thank Y ou! INDUSTRIAL ECONOMICS, INCORPORATED

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