Modeling the impact of large construction projects on surrounding communities

A major construction project has significant impacts on a local community, and those impacts can be classified as either engineering or economic. Engineering impacts are those that affect the environment surrounding the project site; they are, for example, the aesthetic and environmental results of particular design or construction technique. Engineers have become adept at identifying and mitigating those impacts. Environmental Impact Statements are used on most large projects to identify potential problems and propose plans for reducing or eliminating the negative consequences. The economic impacts of a project, however, are an entirely different matter.

Economic impacts of a project affect the revenues and expenditures of surrounding communities. These affects are generally referred to as fiscal impacts. The engineering community, through its historical project development role, is being forced to recognize the importance of fiscal impact analyses. In many jurisdictions, FIAs are required by law and must be performed during project development. Even where an FIA is not required by law, an argument can be made that it is an integral part of sound planning for large projects. Although much of an FIA involves issues that are often not associated with other disciplines, infrastructure issues and service cost provision are not new to engineers. Engineering organizations will find it necessary to staff project development teams with the discipline necessary to analyze fiscal impacts. The engineering community cannot hide from the reality that fiscal impact analyses are rapidly becoming an area in which they will be expected to be proficient, and they should assume a leadership role much as they have for environmental concerns and other project development issues. The model proposed in this dissertation combines the analysis of population, economic, and fiscal issues in a format that supports growth management decision making. It overcomes many of the cost, integration, and accuracy problems encountered with other models and provides project developers and public sector managers with a tool for addressing this important issue.