Glossary - Key Economic Development Terms

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Glossary - Key Economic Development Terms

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

A

ABATEMENT: A reduction in amount or intensity. Usually applies to decrease in taxes or rent.

ACTING WITHOUT AUTHORITY (ULTRA VIM): If a local government regulates the use of land in a manner that has not been authorized by the state, it is invalid and can have no force or effect. Illegal means the decision is outside the authority of the board making the decision or is contrary to some required procedure.

ADAPTIVE REUSE PROJECT: A factory building or other type of building that has been converted to retail, shopping center space.

ABSENTEE OWNER: Property owner who owns property at one location but lives or operates a business at another location.

ADEQUATE PUBLIC FACILITIES: A program that prohibits development where necessary public facilities are not available. The listed facilities, defined in the ordinance, could include such things as: sewer, water, roads, tire protection, storm damage.

AIRPORT RETAIL: A consolidation of retail stores located within a commercial airport. This would not include restaurants and other scattered retail shops along individual concourses, if not part of a concentrated shopping area.

ALTERNATIVE MINIMUM TAX: Is part of the Federal income tax system of the United States. There is an AMT for those who owe personal income tax, and another for corporations owing corporate income tax

ALLOCATION: The direct assignment of non-business income to a particular state.

AMEND: To improve to change for the better by removing defects, faults, or inappropriate or inoperable provisions.

ANCHORS: The major retail outlets that generally are the largest in terms of square footage and are important in establishing the market positioning strategy of the center as well as type of center.

ANNEXATION: To absorb by legal incorporation, to bring previously unincorporated land into municipal incorporation.

APPORTIONMENT: The proportionate assignment of business income to various states, based on a formula which varies by state but typically includes property, payroll and sales (3-factor formulary apportionment).

APPROVE: To ratify, confirm, or sanction or approve m planning can mean either to make formal recommendation to the legislative body of local government or to make specific determination of an application. Where the approval is a recommendation, the legislative body can accept or reject it. Where the approval is a determination, it is final (except as it may be made subject to judicial review).

ARBITRARY AND CAPRICIOUS: Derived from mere opinion, without rational basis. Not supported by substantial evidence.

ASSESSED VALUE (av):The amount used by the county tax assessor to value real property for tax purposes. Assessed value multiplied by the tax rate determines property tax.

AUTO MALL: A strip center consisting of retail stores aimed at the needs of automobiles such as auto dealerships, oil changes, and auto parts.

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B

BLIGHTED AREA: An area which exhibits substantial impediments of development and requiring redevelopment assistance.

BROWNFIELDS: Are abandoned or underused industrial and commercial facilities available for re-use. Expansion or redevelopment of such a facility may be complicated by real or perceived environmental contamination or waste

BUILD-TO-SUIT: An arrangement whereby a landowner offers to pay for construction on his or her land of a building specified by a potential tenant, and then to lease land and building to the tenant.

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C

CAPITAL: A sum of money used to purchase long-term assets.

CAPITAL ASSET: An asset defined in section 1221 of the IRS code that once received favorable tax treatment upon sale. Excludes inventory, property held for resale, property used in a trade or business, copyrights, and certain US government obligations.

CAPITAL EXPENDATURE (investment, improvement): An improvement (as distinguished from a repair) that will have a life of more than one year. Capital expenditures are generally depreciated over their useful life, as distinguished from repairs, which are subtracted from income of the current year

CAPITAL GAIN/ CAPITAL LOSS: A gain on the sale of a capital asset. Loss from a sale of a capital asset.

CAPITAL GAINS TAX: It is a tax charged on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property.

CAPITALIZED VALUE: The value estimated by converting an income stream into a lump-sum amount.

CAVE: Citizens Against Virtually Everything

CATALOG CENTER: A center anchored by one or more catalog showroom stores.

CLUSTER ANALYSIS: Cluster analysis or clustering is the assignment of a set of observations into subsets (called clusters) so that observations in the same cluster are similar in some sense. Clustering is a method of unsupervised learning, and a common technique for statistical data analysis used in many fields, including machine learning, data mining, pattern recognition, image analysis and bioinformatics

CLUSTER DEVELOPMENT: A design technique permitted by some zoning ordinances allowing the clustering of residential units on smaller lots while still maintaining the same densities or number of lots for the zoning district. The remaining land is utilized for common open space or public use.

CMSA: Consolidated Metropolitan Statistical Area (CMSA). A metropolitan area with a population of at least one million. A CMSA consists of at least two contiguous Primary Metropolitan Statistical Areas (PMSA's).

COMMUNITY CENTER: A retail center with a wider range of facilities for the sale of soft lines (apparel) and hardlines (hardware, appliances, etc.) than the neighborhood center. It is built around a junior department store, variety store or discount department store although it may have a strong specialty store. The typical size of a community center is 150,000 square feet. In practice a community center can range from 100,000 to 300,000 square feet. A community center is an intermediate shopping center and the most difficult to estimate for size, trade area and pulling power.

CONVENIENCE CENTER: A small strip center that provides convenience goods (food, drug, etc.) and/or services (laundry, cleaners, copying, etc.) for the busy one-stop-shopper.

COMPS (COMPARABLES): Properties that are similar to the one being sold or appraised.

COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY (CEDs): According to the EDA, the CEDS must be the result of a continuing economic development planning process, developed with broad based and diverse community participation.

CONDITIONAL USE: A use that may locate m certain zoning districts provided it will not be detrimental to the public health, morals, and welfare and will not impair the integrity and character of the zoned district. Examples of conditional use permitted in a commercial, industrial, or an agricultural zone are temporary carnivals, religious revivals, and rock concerts. The duty of the commission approving such applications is to condition the use so that it will not be unsuitable to the surrounding area or community at large.

CONSISTENCY WITH THE GENERAL PLAN: Many states require by statue that zoning ordinances conform to a comprehensive master or general plan. Although Utah law does not currently require consistency, the Utah code provides that a local jurisdiction can require consistency in any event the General Plan should provide the best reference source for explaining why and how regulations were adopted.

CONCURRENCY: A tuned growth element in growth management' plans which ensures that those public facilities and services necessary to support new development are adequate and available at the time development occurs

CORPORATE INCOME TAX: Corporate tax rates generally are the same for differing types of income. However, many systems have graduated tax rate systems under which corporations with lower levels of income pay a lower rate of tax. Some systems impose tax at different rates for different types of corporations. Tax rates vary by jurisdiction.

COUNTY: The primary political and administrative subdivision of a state. In Louisiana such divisions are called "parishes" and in Alaska they area called "boroughs" and "census areas". For the purposes of categorization, independent cities in Virginia (cities independent of counties) are treated as county equivalents.

CREATIVE CLASS: A socioeconomic class identifies as a key driving force for economic development of post-industrial cities in the United States. These are the classic knowledge-based workers and include those working in healthcare, business and finance, the legal sector, and education.

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D

DESIGNATED MARKETING AREA: An AC Nielsen geographic area based on measurable television viewing patterns. DMA's consist of all Zip Codes whose largest viewing share is given to stations of that same market area. All continental U.S., Hawaii and parts of Alaska area covered by non-overlapping DMA's.

DELEGATION OF POWER: Local legislative bodies may not delegate their legislative or policymaking authority to administrative agencies. However, legislators may delegate substantial discretion to such agencies, so long as this delegation is accompanied by a clear-cut policy guideline to control the exercise of the delegated authority.

DISCOUNT CENTER: A center in which a discount store is the major tenant in the development with additional retail space consisting of smaller retail tenants and/or a supermarket. This type of center usually draws a lower socioeconomic group as compared to the off-price center. They are considered part of the Value Retail group of centers.

DUE PROCESS: Probably the most important constitutional protection for land owners, comes from the and 14th amendment to the U.S. Constitution The Fifth amendment states: No person shall be deprived of life, liberty or property, without due process of law... Due process of law is perhaps the most important constitutional principle that those involved in planning must understand. Due process imposes substantial limitations on the law as an instrument of community planning. The term refers to the constitutional protection provided to ensure that laws are reasonable and not arbitrary or capricious. In a word, due process means fairness.

  • Procedural due process - Procedural due process is guaranteed when a governmental body applies an established land use policy that is applicable to a specific parcel of property. Procedural due process includes; adequate and effective notice of hear-, opportunity to participate, and an unbiased decision based on the record supported by reasons and finds of facts.

  • Substantive Due Process: The land use regulation must not only advance a legitimate public interest but also be a reasonable way to further legitimate governmental purposes. This relationship between the regulation and public interest should be documented. The due process clause of the Fourteenth Amendment also prohibits any state from depriving "a person of life, liberty or property, without due process of law." This clause imposes both substantive and procedural due process requirements.

DOWN ZONING: Down zoning occurs when a land use classification is changed from a more intensive to a less intensive use, which increases the restriction on the development of the property. It is an exercise of the government’s police power, but it must not transgress the constitutional rights of property owners. It is implemented only after following all proper procedures must be used when there is a strong compelling public purpose.

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E

EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA): Is essentially Net Income with interest, taxes, depreciation, and amortization added back to it. EBITDA can be used to analyze and compare profitability between companies and industries because it eliminates the effects of financing and accounting decisions.

ECONOMIC DEVELOPMENT: A general term indicating projects to stabilize and enhance an area’s economy and create or maintain jobs.

ECONOMIC FEASIBILITY: (see Feasibility Studies)

ECONOMIC IMPACT ANALYSIS: Analyzes the effect of a policy, program, project, activity or event on the economy of a given area. The impact area can be a neighborhood, community, region or nation.

ECONOMIC MULTIPLIER: An economic multiplier is a number used to estimate economy-wide impacts of industry-specific economic changes. Multipliers are generated from numerical or statistical models of a national or regional economy. Using models, multipliers can be calculated for every business or industry sector in the economy

EFFECTIVE GROSS INCOME: The amount of income that could be produced by a real property assuming no vacancies or collection losses. This does not include miscellaneous income. Contrast with Cash Flow, Net Operating Income.

EFFECTIVE INTEREST RATE: It is the interest rate on a loan or financial product restated from the nominal interest rate as an interest rate with annual compound interest payable in arrears. It is used to compare the annual interest between loans with different compounding terms (daily, monthly, annually, or other).

EFFECTIVE TAX RATE: Refers to the actual rate, i.e., the rate existing in fact. Both average and marginal tax rates can be expressed as effective tax rates.

EMINENT DOMAIN: The power of government to acquire property for a public purpose for which the owner must receive "just compensation." Property can be acquired by the governmental unit through negotiation and purchase, or, if this is unsuccessful, it can be "taken" through the use of the "condemnation" process under the right of eminent domain. Compensation must be fair and is set by appraisals. "Public purposes" include the elimination of blight in the case of redevelopment agencies. Also known as condemnation.

EMPLOYMENT MULTIPLIER: An employment multiplier summarizes the number of total jobs in the economy that will be created for each new job created by a given projects or policy on employment.

ENABLING STATUTES: Standard Enabling Act: State statutes that confer permissive powers to do planning, zoning, and subdivision. In 1925, the Utah State legislature adopted Chapter 9, Title 10 of the Utah Code that enabled municipalities to conduct planning arid zoning. Some years later, in 1941, similar enabling language was enacted to apply to counties. County enabling laws are found in Chapter 27, Title 17.

ENVIRONMENTAL IMPACT: Any consequences to the physical, economic, cultural, aesthetic, or social environment that affect the quality of life in generals and the subsequent utility or value of real property. Some federal legislation and state statutes require an environmental impact statement (EIS) to assess the probability and severity of impacts that specific development proposals could generate.

EXECUTIVE SESSION: A non-deliberative meeting. An executive meeting has the express and limited purpose of administering internal commission affairs. No testimony may be mentioned, applications discussed, deliberations joined, or decisions made. Executive sessions are open to the public.

EQUAL PROTECTION: The Fourteenth Amendment to the U.S. Constitution provides that no state or any of their local governments "shall deny to any person within its jurisdiction the equal protection of its laws.” Equal protection assures that all citizens will be treated alike unless a legitimate reason exists for treating them differently.

EQUITABLE ESTOPPEL: Based on the concept of fairness. For example, if a builder justifiably depends on a government action, such as the issuance of a building permit, and the reliance is made to the builders detriment, the government is "estopped" from denying or revoking that permit. An affirmative act on the part of the jurisdiction must have been taken place. Unauthorized statements or promises from city officials are usually insufficient to invoke equitable estoppel

ESTATE TAXES: Is a tax imposed on the transfer of the "taxable estate" of a deceased person, whether such property is transferred via a will, in the death of the owner. This would include a transfer of property from an intestate estate or trust, or the payment of certain life insurance benefits or financial account sums to beneficiaries.

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F

FACTORY OUTLET CENTER: A center consisting of manufacturer's retail outlet facilities where goods are sold directly to the public in stores owned and operated by manufacturers. In contrast to factory outlets of the past typically found at the factory site, today's factory outlet stores are locating in mall or center settings and often sell first-quality, current season merchandise. Factory outlet malls draw a combination of middle and lower socioeconomic group customers and often include some off-price stores as well as factory outlets. They are considered part of the Value Retail group of centers.

FEASIBILITY STUDIES: Is an evaluation of a proposal designed to determine the difficulty in carrying out a designated task, is an evaluation of the potential impact of a proposed project. (Precedes technical development and project implementation)

FESTIVAL/ENTERTAINMENT CENTER: A center consisting of primarily food and specialty retailers and entertainment facilities. Many times center may be an adaptive reuse or mixed use development and has a heavy concentration of tourist traffic.

FORM BASED ZONING: Is a means of regulating development to achieve a specific urban form, creating a predictable public realm by controlling physical form primarily, with a lesser focus on land use, through city or county regulations.

FINDINGS OF FACT: A complete record of the determinations made. Findings provide a record that the action taken was based on substantial evidence received in hearings. Adequate findings identify the pertinent standards or criteria in the ordinance and identify facts relied on to make the decision. The connection between the facts and decision should be made clear. Putting reasons for action on the record allows the court to understand why the decision was made. If the decision is “reasonably debated” the action will generally be sustained.

FRANCHISE TAX: Is a tax charged by some US states to corporations with a nexus (aka a filing obligation) with those states. The common feature of a state's franchise tax is that it is not based on income. Rather, the typical franchise tax calculation centers around the "net worth" of the taxpayer.

FREEDOM OF SPEECH:Congress shall make no law... abridging the freedom of speech, or of the press... Local governments commonly run into constitutional issues when dealing with sign regulations, location of churches and sexually oriented businesses (SOB). As with other land use issues, when there is any question about proper handling, it is best to seek out expert advice.

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G

GENERAL PLAN: (often referred to as Master Plan or Comprehensive Plan)

(g) (i) "General plan" means a document that a municipality adopts that sets forth general guidelines for proposed future development of the land within the municipality (County definitions contain the same statement.) The General Plan contains goals that state broad public purposes and which describe a desired state for the future. The General Plan also contains policies that are statements of intent against which individual actions and decisions are evaluated. Together, the goals and policies guide the future direction, growth and development of the jurisdiction. The General Plan provides direction to the capital improvements and maintenance programs, and most importantly, forms the legal foundation for the application of zoning, subdivision and other regulations.

GREENBELT: Is a policy and land use designation used in land use planning to retain areas of largely undeveloped, wild, or agricultural land surrounding or neighboring urban areas.

GREENFIELD: Is a project that lacks any constraints imposed by prior work. The analogy is to that of construction on greenfield land where there is no need to remodel or demolish an existing structure.

GROSS DOMESTIC PRODUCT: Is a measure of a country's overall economic output. It is the market value of all final goods and services made within the borders of a country in a year.

GROSS LEASABLE AREA (GLA): in square feet (including anchors)

The total floor area designed for tenant occupancy and exclusive use, including any basements, mezzanines, or upper floors, expressed in square feet and measured from the centerline of joining partitions and from outside wall faces. GLA is all the area for which tenants pay rent. (For our purposes, to get an idea of total center size, square footage of anchor stores should also be included. GLA for mixed use developments should include retail space only.) Gross Leasable Area (GLA) in square feet of mall stores (excluding anchors)

The total floor space occupied by mall tenants. This does not include square footage of anchor stores. (GLA for mixed use developments should include retail space only.)

GROSS STATE PRODUCT: Is a measurement of the economic output of a state or province. It is the sum of all value added by industries within the state and serves as a counterpart to the gross domestic product or GDP.

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H

HOME IMPROVEMENT CENTER: A center anchored by a home improvement retailer or with a concentration of home improvement/hardware specialty retailers.

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I

IMPACT FEES: A fee charged by jurisdictions to new development to assure that new growth pays its way. A list of the capital facilities for which impact fees can be charged includes: water rights and supply, treatment and distribution facilities; wastewater collection and treatment: storm water drainage and flood control: municipal power; roads; parks, recreation facilities open space, and trails; public safety facilities (not jails); certain habitat conservation measures. It is important to remember that the fee charged to new development cannot be used to mitigate existing deficiencies or in the general fund. Utah law has adopted strict guidelines for the adoption of impact fees that must be carefully followed which includes the adoption of a Capital Facilities Program.

…. to determine the equitable share of the capital costs to be borne by newly developed properties, a municipality should determine the relative burden previously borne and yet to be borne by those properties in comparison with the other properties in the municipality as a whole the fee in question should not exceed the amount sufficient to equalize the relative burdens of newly developed properties and other properties.... Excerpt from the opinion by the Supreme Court of Utah on 631 p 2d Banber Development Corp. v South Jordan City

INCOME TAX: Is a tax levied on the income of individuals or businesses (corporations or other legal entities).

INFORMATION-LED DEVELOPMENT: A region that mobilizes Information Technology (IT) in most of their economic development efforts is an Information-led development.

INFRASTRUCTURE: Public improvements which support development, including street improvements, lighting, sewers, flood control facilities, water lines, and gas lines.

INCOME MULTIPLIER: The income multiplier indicates the total amount of new income that will be generated for each dollar of income earned by workers in the industry directly affected by the increased final demand.

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K

KIOSK/CART: A small free-standing retail outlet located within the common area of a mall or center. These usually consist of a small island or movable cart stocked with items for sale by the individual retailer. These may be permanent or temporary tenants.

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L

LABOR MARKET: Usually an informal market where workers find paying work, employers find willing workers, and where wage rates are determined.

LAND USE PLAN: A basic element of a general plan that designates the future use or reuse of the land within a jurisdiction's planning area, and the policies and reasoning used in arriving at the decisions in the plan. The land use plan serves as a guide to official decisions in regard to the distribution and intensity of private development, as well as public decisions on the location of fixture public facilities and open spaces. It is also a basic guide to the structuring of zoning and subdivision controls, urban renewal and capital improvement programs.

LULU: Locally Unpopular Land Use

LUST: Leaking Underground Storage Tank, often associated with fuel depots and gas stations.

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M

MAJORITY VOTE: a formal and functional act of decision-making by a deliberative body requiring a plurality of votes. The by-laws of a planning commission should clearly specify when a majority must be of the full membership and when it may be of those in attendance and at a quorum. An extraordinary majority is a simple majority plus one.

MARKET POSITIONING STRATEGY: A marketing strategy to promote an "image" of the center to its patrons as to the types of anchors and tenants, and therefore, merchandise that may be found there. The market positioning strategy relates how the center management positions the center in the marketplace via its anchor/tenant mix.

MARKET VALUE: What a willing seller could reasonably expect to receive if he/she were to sell his/her property on the open market to a willing buyer.

METROPOLITAN PLANNING ORGANIZATION (MPOs): Is a federally-mandated and federally-funded transportation policy-making organization in the United States that is made up of representatives from local government and governmental transportation authorities.

METROPOLITAN STATISTICAL AREA (MSA) A geographic area with a large population nucleus and includes adjacent counties which have a high degree of economic and social integration with that nucleus. A MSA with a population of more than one million, may qualify to be classified as a Primary Metropolitan Statistical Area (PMSA).

MIXED-USE: Is the idea of creating a multi-use, multi-purpose building or set of buildings, incorporating three or more significant revenue-producing uses such as retail, office, residential, hotel/motel, recreation) which are mutually supporting and developed as a unit; and which significant functional and physical integration of project components, including uninterrupted pedestrian connections; and are development in conformance with a coherent plan. Mixed-use may be developed at various scales from a mixed-use building, mixed use parcels/sites or mixed use walkable/transit areas.

MODERATE INCOME HOUSING: Housing occupied or reserved for occupancy by households with a gross household income equal to or less than 80% of the median gross income of the metropolitan statistical area for households of the same size. 10-9-307 (3) before December 3, 1998 each municipal legislative body shall, as part of its General Plan, adopt a plan for moderate income housing.

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N

NEIGHBORHOOD CENTER: Provides for the sales of convenience goods (food, drugs, etc.) and personal services (laundry, dry cleaning, etc.) for day-to-day living needs of the immediate neighborhood with a supermarket being the principal tenant. In theory, the typical GLA is 50,000 square feet. In practice, the GLA may range from 30,000 to 100,000 square feet.

NET PRESENT VALUE (NPV): Is defined as the sum of the present values (PVs) of the individual cash flows.

NET OPERATING INCOME: Is equal to a property's yearly gross income less operating expenses.

NEXUS: A sufficiently developed relationship between the burden imposed on the development and the need for which the development is said to have created. Also the "point of sale" or location where a taxable retail sales transaction took place.

NEW CENTER UNDER CONSTRUCTION: The construction status of a totally new center for which ground has been broken but construction has not been completed.

NEW URBANISM: New Urbanism is an urban design movement, which promotes walkable neighborhoods that contain a range of housing and job types.

NIMBY: NIMBY or Nimby is an acronym for not in my back yard. The term (or the derivative Nimbyism) is used pejoratively to describe opposition by residents to a proposal for a new development close to them.

NIMFYE: Not In My Front Yard Either

NIMTO: Not in My Term Of Office

NONCONFORMING USES:

  • "Nonconforming structure" means a structure that legally existed before its current zoning designation; and because of subsequent zoning changes, does not conform to the zoning regulation's setback, height restrictions, or other regulations that govern the structure.

  • " Nonconforming use " means a use of land that legally existed before its current zoning designation; and has been maintained continuously since the time the zoning regulation governing the land changed; and because of subsequent zoning changes, does not conform to the zoning regulations that now govern the land.

NUISANCE: Any activity arising from unreasonable, unwarranted, or unlawful use of property that causes substantial arid continuing annoyance, inconvenience, or damage to the properly or others or to the public.

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O

OCCUPANCY RATE: The percentage of all rental units occupied or rented at a given time.

OFF PRICE: A center consisting of retail stores that offer brand name goods found in conventional specialty and department stores at 20 percent to 70 percent below manufacturer's suggested prices. The goods found in an off price store are generally of higher quality than those found at a discount store. Off price centers draw primarily customers of the middle and middle-upper socioeconomic group. They are considered part of the Value Retail group of centers.

OPEN AND PUBLIC MEETINGS ACT: ….the Legislature finds that the state, its agencies and political subdivisions, exist to aid in the conduct of the people's business. It is the intent of the law that their actions be taken openly and that their deliberations be conducted openly.

OPERATING BUDGET: OPEN LANDS: 63-38-1.4 Means land that is preserved in or restored to a predominantly natural, open, and undeveloped condition; and' used for wildlife habitat: cultural or recreational use: watershed projection: or another use consistent with the preservation of the land in or restoration of the land to a predominantly natural, open and undeveloped condition 'Open land"' does not include land whose predominate use is as a developed facility for active recreational activities, including baseball, tennis, soccer, golf or other sporting or similar activity.

OPERATING BUDGET: A reasonable expectation of future income and expenses from property operations.

OPERATING CAPITAL: Money used to finance everyday activities of the business.

OUTPUT MULTIPLIER: An output multiplier represents the total value of new sales that will be stimulated in the economy for each dollar increase in final demand.

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P

PAYROLL FACTOR: The proportion of total payroll attributable to a particular state. Computed by dividing in-state payroll by total payroll. Used as part of a formulary apportionment method to assign income to the various states.

PITBY: Put It In Their Back Yard

PLANNED CENTER: The construction status of a center in which construction has not begun but certain definitive measures have been taken, such as rezoning, finished schematics and obtaining building permits, financing, etc. A planned center is more certain to be completed than a proposed center, which is still in the conceptual phase.

PLANNED UNIT DEVELOPMENT (PUD): A self-contained development, often with a mixture of housing types and densities, in which the subdivision and zoning controls are applied to the project as a whole rather than to individual lots, as in most subdivisions. Therefore, densities are calculated for the entire development, usually permitting a tradeoff between clustering of houses, provision of common open space and other amenities.

POLICE POWER: The 10th Amendment to the constitution reserves to the states all powers, not delegated to the federal government, among which is the power to regulate for the public benefit of health, safety, welfare. Police power is the term used to describe the legislative or policy making power in each state to establish laws and ordinances to preserve public order and tranquility and to promote the public health, safety, and morals, and general welfare of the public. The zoning of property derives from the states' police power. The states delegate the power to zone and exercise other land use controls through enabling legislation to cities and counties. Regulations must bear a reasonable, substantial relationship to the health, safety, morals or welfare of the public.

POLICY: An imperative or prescriptive principle that directs fixture action. A policy usually has three components: specific definition of the action to be performed; statement of the conditions under which it is to be performed; and (3) identification of the individuals or officers responsible for performing it. Policies may be positive (prescriptive) or negative (proscriptive); they may be strict commands (employing such performatory verbs as shall or must) or discretionary (employing such performatory verbs as will or may).

POWER CENTER: An open, strip center with three to five anchors accounting for more than 75% of the GLA with the GLA of a few smaller tenants accounting for the balance.

PRESUMPTION OF CONSTITUTIONALITY: When a land use regulation is challenged as not furthering a legitimate government purpose, the court will begin its review and analysis with a legal presumption that the regulation is constitutional. The person challenging the regulation has the burden of presenting evidence sufficient to overcome this presumption of constitutionality. “A court should not set aside the determination of public officers unless it is clear that their action has no foundation in reason and is a mere arbitrary or irrational exercise of power having no substantial relation to the public health, the public morals, the public safety or public welfare in its proper sense"

PRIMARY MARKET POPULATION: The population which is located within the center's primary trade area. The primary trade area is the geographic area around the center from which approximately 60 to 70 percent of the center's customers come.

PMSA: Primary Metropolitan Statistical Area . A MSA with a population greater that one million persons.

PRO-FORMA: Financial statements showing what is expected to occur, as opposed to actual results.

PROPOSED CENTER : A conceptual state in the development of a center in which construction has been proposed, but no definite plans have been enacted. Typically, proposed centers are surrounded by uncertainty concerning zoning, variances, financing, anchor retail tenant commitments, etc.

PROPERTY TAX (Ad Valorem Tax): Is an ad valorem tax that an owner of real estate or other property pays on the value of the property being taxed. There are three species or types of property: land, improvements to land (immovable man made things), and personal (movable man made things).

PROPERTY FACTOR: The proportion of total property attributable to a particular state. Computed by dividing in-state property by total property. Used as part of a formulary apportionment method to assign income to the various states.

PUBLIC HEARING: A formally announced meeting of a public body, the express purpose of which is to receive written and oral testimony on specific matters. It is open to the public both f& attendance and for testimony. Commission and/or board members may ask questions but generally, no deliberation takes place during the hearing. The full record of information should be reviewed by the staff and incorporated into its report for subsequent commission deliberation. The notice requirement is more stringent than for public meetings.

PUPUS: Particularly Undesirable Public Utilities.

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R

REAL ESTATE INVESTMENT TRUST (REITS): Is a tax designation for a corporation investing in real estate that reduces or eliminates corporate income taxes. In return, REITs are required to distribute 90% of their income, which may be taxable, into the hands of the investors.

REDEVELOPMENT: Planning, development, redesign, site preparation and improvement, reconstruction and/or rehabilitation of all or part of a project area.

REDEVELOPMENT AGENCY BOARD: The governing body created to designate redevelopment project areas, supervise and coordinate planning for a project area and implement the revitalization program.

REDEVELOPMENT PLAN: Plan for revitalization and redevelopment of land within the project area in order to eliminate blight and remedy the conditions which caused it.

REGIONAL CENTER: Provides shopping goods, general merchandise, apparel, furniture and home furnishings in full depth and variety. It is built around the full-line department store, with a minimum GLA of 100,000 square feet, as the major drawing power. For even greater comparative shopping, two, three or more department stores may be included. In theory a regional center has a GLA of 400,000 square feet, and can range from 300,000 to more than 1,000,000 square feet. Regional centers in excess of 750,000 square feet GLA with three or more department stores are considered super regional centers.

REHABILITATION: To improve, alter, modernize and/or modify an existing structure to make it safer and healthier, bring it up to building code standards and create more usable space.

RELOCATION: The provision of new housing and/or business locations for residents, businesses or organizations that must move as a result of redevelopment activities.

RELOCATION ASSISTANCE: Aid for those who relocate, including assistance in finding and paying for a new location, payments to cover moving costs, and additional payments for certain other costs

ROAD CLASSIFICATIONS: The classification of streets and highways by their diverse functions and design. The following is the commonly used hierarchy of streets and highways for planning purposes:

  • Local Street: A roadway allowing access to abutting land, serving local traffic only.

  • Collector: A street whose friction is to channel traffic from local streets to major arterial; it Ms direct access to abutting properties.

  • Major Arterial: A road that serves through traffic movement across urban areas, often subject to controlled access from properties fronting on the right-of-way.

  • Expressway: A divided multilane highway whose purpose is to move large volumes of through traffic from one part of a metropolitan area to another; intersections are separated by under- or overpasses at major intersections. It does not provide land-access service between intersections.

  • Freeway: A multilane highway with full grade separation, total control of access, median strips, and fencing, or landscaping strips along the sides. It basically serves intercity and interstate traffic.

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SALES FACTOR: The proportion of total sales attributable to a particular state. Computed by dividing in-state sales by total sales. Used as part of a formulary apportionment method to assign income to the various states.

SALES TAX: Is a consumption tax charged at the point of purchase for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale. A portion of the sale may be exempt from the calculation of tax, because sales tax laws usually contain a list of exemptions.

SMART GROWTH: Is an urban planning and transportation concept, focused on concentrated/strategic growth. The idea of Smart growth was created as a result and alternative to urban sprawl, traffic congestion, disconnected neighborhoods, and urban decay. Smart Growth principles challenge old assumptions in urban planning, re-thinking the ideas of auto-dependent neighborhoods and detached single-family homes.

SERVICE-ORIENTED CENTER: A center consisting predominantly of service-oriented retailers such as optical, dental, repair, health services, legal services, etc.

SETBACK REGULATIONS: Setback Regulations: The requirements of building laws that a building be set back a certain distance from the street or lot rifle either on the street level or at a prescribed height. Their aim is to allow more room for the pedestrian or reduce the obstruction to sunlight reaching the streets and lower stories of adjoining buildings.

SHOPPING CENTER: A group of architecturally unified commercial establishments built on a site which is planned, developed, owned, and managed as an operating unit related in its location, size and type of shops to the trade area that the unit serves. The unit provides on-site parking in definite relationship to the types and total size of the stores. NRB considers such a unit a shopping center if it contains three or more stores.

SOB: Sexually Oriented Business

SPECIALTY CENTER: Centers that are quite diverse in thematic format, size and market orientation but share common features that distinguish them from other centers. They employ a unifying theme in architectural design which is carried out by the individual shops; anchored by restaurants and entertainment facilities rather than department stores or supermarkets; strongly appeal to tourists as well as local shoppers; and their tenants typically offer unusual merchandise.

STRIP CENTER: Spot Zoning: 'Spot zoning' is the unjustifiable singling out of a piece of property for preferential treatment. It is not a statutory term; it is a judicial epithet signifying legal invalidity. Spot zoning is zoning a relatively small area differently from the surrounding area, usually for an incompatible use and often to favor the owner of a particular piece or pieces of property. Not necessarily a Sexually Oriented Business.

STRIP CENTER: A line of stores often tied together by a canopy over the sidewalk, which runs along the fronts of the stores. A configuration of an open shopping center (non enclosed), which may vary greatly in size.

SUBDIVISION REGULATIONS: Regulations governing the division and development of land so as to assure definitive legal title, assure proper design and compatibility with surrounding area, provision of necessary services and to guarantee health, safety, and welfare to both users and the public.

SUPER REGIONAL CENTER: Provides for an extensive variety of general merchandise. It is built around three or more major department stores. In theory, a super regional center has a GLA of 750,000 square feet and in practice ranges upwards of 1,000,000 square feet. The major department stores generally have a square footage of 100,000 square feet each.

SUBLEASE: A lease from a lessee to another lessee. The new lessee is a sublessee or subtenant

SUNSHINE ACT: Refers to the open meeting act, which requires that all government business be conducted openly with proper notice being given. (See Open and Public Meeting Act)

(SWOT) STRENGTHS WEAKNESS OPPORTUNITIES THREATS ASSESSMENT: Is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.

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TAKING: (See: Taking without just compensation)

TAKING WITHOUT JUST COMPENSATION: From the 5th Amendment to the United States Constitution: "nor shall private property be taken for public use without just compensation.” Before a taking claim is made, the property owner must first exhaust administrative remedies, absent futility, and obtains a final administrative decision before making a taking claim. This is commonly called the "exhaustion of remedies' and "ripeness'. There is no set precise formula for determining a taking, questions asked by the court in determining a taking may include:

  • Does the regulation relate to and substantially advance, a legitimate state interest? Where government can equally accomplish a valid public purpose through regulation or through a requirement of dedicating property, government should use the less intrusive regulation, for example, prohibiting development in a flood plain property.

  • Does regulation permit or require a physical invasion of the property?

  • Does regulation deny the property owner of "all economically beneficial use of the property?

  • Does the regulation impose a burden or cost on the landowner that does not bear a "reasonable relationship" to the impacts of the project on the community?

TAXABLE INCOME OR LOSS: The amount of income or loss on a tax return. Generally derived, for rental real estate, by subtracting from Gross Income the sum of Operating Expenses interest expenses, depreciation deductible for income taxes, and Amortization of Deferred Charges.

TAX CREDIT: A direct reduction against income tax liability that would otherwise be due.

TAX DEDUCTIBLE: A type of expense that is allowed under tax law.

TAX EXEMPT PROPERTY: Real property that is not subject, in whole or in part, to Ad Valorem property taxes.

TAX-INCREMENT FINANCING (TIF): TIF is a tool to use future gains in taxes to finance current improvements (which theoretically will create the conditions for those future gains). When a public project such as a road, school, or hazardous waste cleanup is carried out, there is often an increase in the value of surrounding real estate, and perhaps new investment (new or rehabilitated buildings, for example).

TECHNOLOGY-BASED DEVELOPMENT: A region that mobilizes technology in most of their economic development efforts is a technology-based economy.

TEMPORARY ZONING REGULATIONS: The purpose of moratoria is to provide a community time to adopt a plan to remedy the problem or problems that existed prior to adoption of a temporary freeze on development The moratorium is temporary while the community in good faith studies ways of alleviating the problem In Utah, the enabling legislation provides for Temporary regulations in section lO-9-404 (Cities and Towns) and 17-27-204 (Counties) which states that the jurisdiction may adopt a temporary zoning regulation's ordinance (T.Z.R.O) if the jurisdiction makes a finding of compelling, countervailing public interest, or the area is un-zoned. The TZRO may prohibit or regulate the erection, construction, reconstruction, or alteration of any building or structure or subdivision approval. The TZRO shall not exceed six months.

TESTIMONY: The presentation of information by an interested or affected party regarding an application pending before a planning commission or legislative body Testimony becomes part of the public record of deliberation; persons providing it are held responsible for their comments.

THROW BACK RULE: Means that sales shipped from a particular state into states where the shipping firm has no nexus are “thrown back” and counted as the original state’s sales for corporate tax purposes.

TOTAL NUMBER OF STORES: The number of leased and unleased (vacant) store spaces plus the total number of anchor stores.

TRADITIONAL TENANT MIX: A center in which a variety of tenant types may be found and no concentrated specialization of tenant type or goods offered exists.

TRANSIT-ORIENTED DEVELOPMENT: Is a mixed-use residential or commercial area designed to maximize access to public transport, and often incorporates features to encourage transit ridership. A TOD neighborhood typically has a center with a train station, metro station, tram stop, or bus stop, surrounded by relatively high-density development with progressively lower-density development spreading outwards from the center.

TRANSFER OF DEVELOPMENT RIGHTS (TDR): where development rights are transferred from one property to another, which commonly results in a higher density on one property and leaves the other in open space.

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UPSCALE/FASHION: A center comprised of a concentration of apparel shops, boutiques, and hand-craft shops carrying selected merchandise, usually of high quality and high price. An upscale/fashion center may include one or more small specialty department stores and gourmet food and food service. These centers are most often located in upper middle and higher income areas.

URBAN SPRAWL: The spreading outwards of a city and its suburbs to its outskirts to low-density, auto-dependent development on rural land, with associated design features that encourage car dependency

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VACANCY RATE: The percentage of all rental units unoccupied nor rented at a given time.

VALUATION: Is the determination of the economic value of an asset or liability.

VALUE ADDED MULTIPLIER: The value added multiplier provides an estimate of the additional value added to the product as a result of this economic activity. Value added includes employee compensation, indirect business taxes, proprietary and other property income.

VALUE ADDED TAX(VAT): A value-added tax (VAT), or goods and services tax (GST), is tax on exchanges. It is levied on the added value that results from each exchange. It differs from a sales tax because a sales tax is levied on the total value of the exchange.

VALUE RETAIL: A term used to aggregate centers that have a market positioning strategy of discount, off price or factory outlet.

VESTED RIGHTS: The concept is that after a certain point in the approval process the landowner acquires a property interest in the property that should be protected. Vesting determinations vary from state to state. In Utah three thresholds inquiries must be made in order to determine whether vested rights exist.

  • Was an application for building permit or subdivision approval tiled that conformed to the version of the code in existence at the time of filing?

  • Has the applicant proceeded with reasonable diligence toward completing application procedures and the proposed development?

  • Is the public interest served by the Code or General Plan Amendment so compelling as to warrant its enforcement against the pending application

VOID FOR VAGUENESS: Courts will invalidate a regulation that is so unclear or ambiguous that a person of normal intelligence will not be able to comprehend what the regulation forbids or permits. Vagueness can also be applied if the regulation lacks sufficiently explicit standards for its application by an administrative body and thereby impermissibly delegates to that body tie freedom to decide basic policy matters on an ad hoc and subjective basis.

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YEAR OPEN: The year reported as the year the center first opened as a shopping center.

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ZONING: A police power measure that establishes land use and density in advance of applications for development. Zoning Laws are intended to promote the health, safety, welfare, convenience, morals, and prosperity of people in the community, as a whole, rather than to further the economic interest of any particular property owners.

ZONING ORDINANCES: Zoning is a device of land use planning used by local governments in most developed countries . Zoning may be use-based (regulating the uses to which land may be put), or it may regulate building height, lot coverage, and similar characteristics, or some combination of these. Similar urban planning methods have dictated the use of various areas for particular purposes in many cities from ancient times.

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