This White Paper provides background and insight on the utilization of an economic analysis as one component of the Section 404(b)1 Alternatives Analysis as required by the Federal Clean Water Act. The Alternative Analysis is the tool used to identify the "practicable" alternative with the least environmental damage. "Cost" is one of several factors used by the Corps and other agencies to identify the set of alternatives that is practicable. The economic analysis described in this White Paper is a means of determining whether an alternative is "economically viable." Four economic measures are defined, including: (1) Cost Burden; (2) Residual Land Value; (3) Fiscal Impact Analysis; and (4) Market Absorption. This paper has been written to provide public agency staff not familiar with real estate economics with more background information on development economics.
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