NNYYSS RROOUUTTEE 112 CCOORRRRIIDDOORR SSTTUUDDYY · NYS Route 12 Corridor Study – Phase I Economic Impact of Proposed Improvements -2- October, 2002 1 INTRODUCTION New York State

NNYYSS RROOUUTTEE 1122

CCOORRRRIIDDOORR SSTTUUDDYY PPHHAASSEE II

Broome, Chenango, Madison, & Oneida Counties

Prepared For:

New York State Department of Transportation and

NYS Route 12 Task Force

October 2002

NYS Route 12 Corridor Study – Phase I Economic Impact of Proposed Improvements -i- October, 2002

NYS ROUTE 12 CORRIDOR STUDY

PHASE I

October 2002 Prepared For:

New York State Department of Transportation Region 2 Region 9 207 Genesee Street 44 Hawley Street Utica, New York 13501 Binghamton, New York 13901 Broome County Chenango County 47 Thomas Road 79 Rexford Street Binghamton, New York 13901 Norwich, New York 13815 Madison County Oneida County 139 North Court Street 321 Main Street Wampsville, New York 13163 Utica, NY 13501 Route 12 Task Force Members: Randy Gibbon, Chenango County Department of Public Works William Sczesny, Broome County Department of Public Works Michael Gapin, Oneida County Planning Department Tammy Carnrike, Chenango County Chamber of Commerce DeForest Winfield, Herkimer-Oneida Counties Transportation Study William Barber, Broome County Deputy County Executive Jack Miller, Madison County Planning Department Joseph Slivinski, Madison County Highway Department John Waszkiewicz, Town of New Hartford Cliff Miller, Madison County Highway Department R.C. Woodford, Chenango County Planning Department Dave Ligeikis, NYSDOT, Region 9, Planning John Paddick, NYSDOT, Region 9, Planning Thomas Osika, NYSDOT, Region 2, Planning

Prepared By:

Barton & Loguidice, P.C. Wilbur Smith Associates 290 Elwood Davis Road P.O. Box 92 Box 3107 Columbia, South Carolina 29202 Syracuse, New York 13220

NYS Route 12 Corridor Study – Phase I Economic Impact of Proposed Improvements - ii- October, 2002

TABLE OF CONTENTS SECTION PAGE 1. INTRODUCTION 2

1.1 Study Objectives 2 1.2 Description of Study Area 2

2. DATA COLLECTION 5

2.1 Purpose 5 2.2 Segment 1 (US Route 11 to NYS Route 206) 5 2.3 Segment 2 (NYS Route 206 to City of Norwich) 8 2.4 Segment 3 (City of Norwich) 11 2.5 Segment 4 (City of Norwich to NYS Route 12B) 13 2.6 Segment 5 (NYS Route 12B to NYS Route 5) 16 2.7 Segment 6 (City of Utica) 18 2.8 Summary 21

3. CONCEPT DEVELOPMENT 24

3.1 Concepts Considered 24 3.2 Proposed Improvements and Locations 25 3.3 Safety and Travel Time Benefits 28 3.4 Cost Estimates 29

4. ECONOMIC ANALYSIS 32

4.1 Introduction 32 4.2 Socio-Economic Profile 37 4.3 Economic Benefits of Phase I Improvements 56 4.4 Considerations for Phase II 68

5. RECOMMENDATIONS Appendices

Maps Economic Impact Data Request Form

NYS Route 12 Corridor Study – Phase I Economic Impact of Proposed Improvements October, 2002

INTRODUCTION

NYS Route 12 Corridor Study – Phase I Economic Impact of Proposed Improvements -2- October, 2002

1 INTRODUCTION New York State Route 12 is a primary transportation corridor serving the Binghamton, Norwich, and Utica communities. With direct access to Interstate highways in both the Binghamton and Utica areas, this route has experienced a significant growth in traffic over the years, and as such, also experiences the transportation problems that coincide with that growth. The safety, capacity, operation, and accessibility of NYS Route 12 require improvement to maintain and stimulate economic growth along the corridor. There are locations with safety concerns, reduction in travel time, and congestion that contribute to the perception of travel conditions in need of improvement. 1.1 Study Objectives

This project will examine the feasibility of corridor improvements, from both travel efficiency and economic development viewpoints. Within the corridor region, the analysis will review the packages or “bundles” of corridor improvements, and will help determine priorities for future implementation.

The primary objective of the study is to prepare a plan that will:

identify and prioritize alternative highway improvements that will mitigate existing transportation problems;

improve safety, mitigate traffic congestion, and stimulate economic growth within the region; and

identify long-term solutions. 1.2 Description of Study Area

NYS Route 12 begins at US Route 11 in Broome County and continues north to the intersection of NYS Route 37 in St. Lawrence County. The focus area of this study includes the area from US Route 11 in the Town of Chenango, Broome County through the Towns of Greene, Oxford, Norwich, North Norwich, and Sherburne in Chenango County; Hamilton and Brookfield in Madison County; and Sangerfield, Marshall, Paris, and New Hartford in Oneida County; and ends at the NYS Thruway (I-90) in the City of Utica, a total of approximately 84 miles.


The corridor is generally rural and agricultural, with pockets of development through the urban areas in Binghamton, Greene, Oxford, Norwich, Sherburne, Waterville, and Utica.


DATA COLLECTION


2 DATA COLLECTION 2.1 Purpose

The purpose of this memorandum is to present a summary of findings from data collection conducted for the study area portion of the NYS Route 12 corridor.

The data collected included accident summaries, traffic counts, speed studies, and information obtained from the NYS Geographic Information System (GIS) database. The project is being progressed under direction of a Task Force of representatives from Broome, Chenango, Madison, and Oneida Counties, and the NYS Department of Transportation (NYSDOT).

For analysis, the Route 12 corridor has been separated into six (6) segments. These segments, starting at the south end, are:

• Intersection of US Route 11 to NYS Route 206 (14.3 miles) • NYS Route 206 to City of Norwich southerly limit (20.6 miles) • City of Norwich (1.7 miles) • City of Norwich northerly limit to NYS Route 12B (11.5 miles) • NYS Route 12B to NYS Route 5 overlap (32.1 miles) • NYS Route 5 overlap to Interstate 90 (3.9 miles)

2.2 Segment 1 - US Route 11 to NYS Route 206 (14.3 miles)

A. General Characteristics

The first segment has two distinctly different roadway sections. The southern section begins at the intersection of US Route 11 and NYS Route 12 and proceeds northerly approximately 0.5 miles to the intersection of NYS Route 12A. The northern section extends approximately 13.8 miles from the intersection of NYS Route 12A to the intersection of NYS Route 206 in the Town of Greene. The section characteristics are as follows:

NYS Route 12 Corridor Study – Phase I Economic Impact of Proposed Improvements -6- September 2002

Section Setting Length Lanes Lane Width Shoulder Last

Improved Southern Urban 0.5 mi 5 12 ft Curbed 2002 Northern Rural 13.8 mi 2 12 ft 8 ft 1987

Other characteristics of this segment include:

Section Land Use Functional Inspection Pavement Terrain Class Year Condition

Southern Commercial Principal Arterial 2001 Fair Level

Northern Residential, Agricultural

Principal Arterial 2001 Good Rolling

B. Accident Data

Accident data from 1998 to 2001 for the corridor was furnished by NYSDOT. For this segment of Route 12 the accidents are shown below.

Accidents Fatal Injury PDO Non-

Reportable Accidents

335 2 105 143 85

Based on the accident data provided, the linear accident rates for the segment were calculated. The table below compares the calculated accident rates to the state average for similar road segments.

Section Road State Average Actual

Characteristics Accident Rate Accident Rate

Southern 5 lanes, undivided,

urban 5.66 acc/MVM 12.42 acc/MVM

Northern 2 lanes, undivided,

rural 2.78 acc/MVM 2.51 acc/MVM

acc/MVM = Accidents per Million Vehicle Mile

High accident locations, as identified by NYSDOT, for this segment are:

• US Route 11 to NYS Route 12A • Brotzman Road to River Road


• Knapp Hill Road to the end of NYS Route 79 overlap • Foster Hill Road area • Laurel Avenue to South Chenango Street Extension

C. Traffic

Traffic along this segment consists primarily of local commuter and business traffic. Other traffic noted along the corridor included agricultural equipment, school buses, and emergency vehicles. Known constraints for this section include Kattelville, Chenango Forks, and the Town of Greene. Present and projected average annual daily traffic (AADT) volumes and the count year directional design highway vehicle (DDHV) are shown in the table below. The growth factors applied to the existing traffic to predict future volumes were supplied by NYSDOT.

Section AADT DDHV Count Growth 2002 2005 2015 Trucks (Ave.) (Ave.) Year Factor AADT AADT AADT

Southern 12500 765 2000 1.5% 13000 13500 15650 5% Northern 6600 400 2000 1.5% 6800 7150 7250 10%

D. Speed Data

A test vehicle method speed study was performed for each segment of the Route 12 corridor, as described in the ITE “Transportation and traffic Engineering Handbook”. In this technique, the driver travels at a representative speed for traffic at every point and time. The timed runs through this segment were performed in the morning of March 30, 2002, between 7:00 and 8:30. The weather was mostly sunny and the road surface was dry.

The posted speed limit for Segment 1 is generally 55 mph outside of urban and built up areas. The average travel time recorded for this segment is noted below.

Segment Segment Time Travel Length Travel Time per mile Speed 55 mph 14.3 mi. 15 min 36 sec 1 min 5 sec 55 mph Measured 14.3 mi. 17 min 26 sec 1 min 13 sec 49 mph


(Ave.)

Noted factors that increase delay and congestion for this segment were:

• Turning traffic onto side roads without designated turning lanes • Heavy vehicles entering corridor • Traffic signals

• Substandard road geometries • Lack of safe passing opportunities • Substantial traffic volumes • School bus stops • Pedestrian crossings

E. Other Projects

NYSDOT has scheduled safety improvements in 2006 for the portion of this segment from Brotzman Road to River Road.

2.3 Segment 2 - NYS Route 206 to City of Norwich (20.6 miles)


The second segment of this study begins at NYS Route 206 in the Town of Greene and extends to the City of Norwich. The characteristics of this segment are as follows:

Setting Length Lanes Lane Width

Shoulder Last Improved

Rural 20.6 mi. 2 12 ft 10 ft 1966, 1989-1993


Land Functional Inspection Pavement Terrain Use Class Year Condition

Residential/ Agricultural

Principal Arterial

2001 Fair to Good

Rolling


B. Accident Data




308 1 65 179 63

Based on the accident data provided, the linear accident rate for the segment was calculated. The table below compares the calculated accident rate to the state average for similar road segments.



Segment 2 2 lanes, undivided,



High Accident Locations (HAL’s), as identified by NYSDOT, for this segment are:

• NYS Route 206 to the end of NYS Route 41 overlap • Bunt Road to Hogsback Road • Brisben to Hill Road • Canal Street to NYS Route 220 East • Lower Ravine Road to the City Norwich

C. Traffic

Traffic along this segment consists primarily of commuter and seasonal traffic. Other traffic noted along the corridor included agricultural equipment, school buses, and emergency vehicles. Known control points along this segment include the Town of Greene, Hamlet of Brisben, and Village of Oxford.


Present and projected average annual daily traffic (AADT) volumes and the count year directional design highway vehicle (DDHV) are shown in the table below. The growth factors applied to the existing traffic to predict future volumes were supplied by NYSDOT.

AADT DDHV Count Growth 2002 2005 2015 Trucks (Ave.) (Ave.) Year Factor AADT AADT AADT 6250 380 2000 1.5% 6450 6750 8250 12%

D. Speed Data

A test vehicle method speed study was performed for each segment of the Route 12 corridor, as described in the ITE “Transportation and traffic Engineering Handbook”. In this technique, the driver travels at a representative speed for traffic at every point and time. The timed runs through this segment were performed in the morning of March 30, 2002, between 9:00 and 10:30. The weather was mostly sunny and the road surface was dry.


Segment Segment Time Travel

Length Travel Time per mile Speed 55 mph 20.6 miles 22 min 28 sec 1 min 5 sec 55 mph Measured (Ave.)

20.6 miles 25 min 12 sec 1 min 13 sec 49 mph

Noted factors that increase delay and congestion for this segment were:

• Turning traffic onto side roads without designated turning lanes • Heavy vehicles entering corridor • Traffic signals • Substandard road geometries • Agricultural equipment using roadway • Lack of safe passing opportunities • School bus stops


E. Other Projects

NYSDOT has scheduled a multi-course asphalt overlay in 2005 (PIN 9016.34) for the NYS Route 12/NYS Route 41 intersection, in the Town of Greene. This location was last improved in 1966, and the pavement condition is in fair condition.

2.4 Segment 3 - City of Norwich (1.7 miles)


The third segment of this study is the City of Norwich. This segment primarily consists of two travel lanes with, several signalized intersections, on street parking, high pedestrian volumes, and sections containing center turn lanes. The characteristics of this segment are as follows:

Setting Length Lanes Lane

Width Shoulder Last Improved

Urban 1.7 mi 2-3 12 ft Curbed 1985



Residential/ Commercial

Principal Arterial 2001 Fair to Good

Rolling

B. Accident Data

Accident data from 1998 to 2001 for the corridor was furnished by NYSDOT. For this segment of Route 12, the accidents are shown below.



82 0 49 15 18






urban 3.69 acc/MVM 2.94 acc/MVM


There are no high accident locations identified by NYSDOT for this segment.

C. Traffic

Traffic along this segment consists primarily of local commuter and commercial traffic. Other traffic noted along the corridor included school buses and emergency vehicles. Present and projected average annual daily traffic (AADT) volumes and the count year directional design highway vehicle (DDHV) are shown in the table below. The growth factors applied to the existing traffic to predict future volumes were supplied by NYSDOT.


D. Speed Data

A test vehicle method speed study was performed for each segment of the Route 12 corridor, as described in the ITE “Transportation and traffic Engineering Handbook”. In this technique, the driver travels at a representative speed for traffic at every point and time. The timed runs through this segment were performed at noontime on March 30, 2002. The weather was mostly sunny and the road surface was dry.

The posted speed limit for Segment 3 is 30 mph. The average travel time recorded for segment is noted below.


Segment Segment Time Travel Length Travel Time per mile Speed 30 mph 1.7 miles 3 min 24 sec 2 min 0 sec 30 mph Measured (Ave.)

1.7 miles 5 min 56 sec 3 min 29 sec 17 mph

Noted factors that increase delay and congestion for this segment are:

• Turning traffic onto side roads without designated turning lanes • Pedestrian crossings • Traffic signals • Substantial traffic volumes

• Law enforcement directing traffic

E. Other Projects

NYSDOT has scheduled a project in 2002, for improvements to pedestrian facilities in the City of Norwich.

2.5 Segment 4 - City of Norwich to NYS Route 12B (11.5 miles)


The fourth segment of this study begins at the City of Norwich northerly limit and extends to the intersection of NYS Route 12B in the Town of Sherburne. The characteristics of this segment are as follows:



Rural 11.5 mi 2 12 ft 8 ft 1983-1989




Minor Arterial 2001 Poor to Fair Rolling


B. Accident Data Accident data from 1998 to 2001 for the corridor was furnished by NYSDOT. For this segment of Route 12 the accidents are shown below.



235 0 69 117 25







High Accident Locations (HAL’s), as identified by NYSDOT for this segment are:

• Wilson Road to North Norwich • Village of Sherburne

C. Traffic

Traffic along this segment consists primarily of commuter and seasonal traffic. Other traffic noted along the corridor included agricultural equipment, school buses, and emergency vehicles. North Norwich and the Town of Sherburne are the only known control points for this segment.

Present and projected average annual daily traffic (AADT) volumes and the count year directional design highway vehicle (DDHV) are shown in the table below. The growth factors applied to the existing traffic to predict future volumes were supplied by NYSDOT.



D. Speed Data

A test vehicle method speed study was performed for each segment of the Route 12 corridor, as described in the ITE “Transportation and traffic Engineering Handbook”. In this technique, the driver travels at a representative speed for traffic at every point and time. The timed runs through this segment were performed in the afternoon on March 30, 2002, between 2:30 and 4:00. The weather was mostly sunny and the road surface was dry.

The posted speed limit for Segment 4 is generally 55 mph outside of urban and built up areas. The average travel time recorded for this segment is noted below. Segment Segment Time Travel Length Travel Time per mile Speed 55 mph 11.5 mi. 12 min 32 sec 1 min 5 sec 55 mph Measured (Ave.) 11.5 mi. 15 min 12 sec 1 min 19 sec 46 mph

Noted factors that increase delay for this segment were:

• Turning traffic onto side roads without designated turning lanes • Heavy vehicles entering corridor • Traffic signals • Agricultural equipment using roadway • Lack of safe passing opportunities • Steep grades without climbing lanes for heavy vehicles • School bus stops

E. Other Projects

NYSDOT has scheduled a single course overlay in 2002, from the City of Norwich to the Village of Sherburne.


2.6 Segment 5 - NYS Route 12B to NYS Route 5 Overlap (32.1 miles)


The fifth segment of this study begins at the intersection of NYS Route 12B in the Town of Sherburne and extends to the NYS Route 5 overlap in the Town of New Hartford. The characteristics of this segment are as follows:



Rural 32.1 mi. 2 11 -12 ft 6-10 ft 1977, 1991-1998




Minor Arterial

2001

Poor to Excellent Rolling

B. Accident Data




399 0 112 168 119








High accident locations, as identified by NYSDOT, for this segment are:

• Stockwell area • NYS Route 20 Intersection • Village of Waterville • Daytonville area • Hamlet of Paris • Burmaster Road area • Clarey Road area • NYS Route 921 to start of NYS Route 5 overlap

C. Traffic

Traffic along this segment consists primarily of commuter and seasonal traffic. Other traffic noted along the corridor included agricultural equipment, school buses, and emergency vehicles. Control points along this segment include the Town of Sherburne, Chenango Co./Madison Co. line, East Hamilton, North Brookfield, Oneida Co./Madison Co. line, Sangerfield, Waterville, Village of Paris, New Hartford, and the City of Utica. Present and projected average annual daily traffic (AADT) volumes and the count year directional design highway vehicle (DDHV) are shown in the table below. The growth factors applied to the existing traffic to predict future volumes were supplied by NYSDOT.


D. Speed Data

A test vehicle method speed study was performed for each segment of the Route 12 corridor, as described in the ITE “Transportation and traffic Engineering Handbook”. In this technique, the driver travels at a representative speed for traffic at every point and time. The timed runs through this segment were performed in the afternoon on April 11, 2002, between 1:00 and 3:00. The weather was mostly sunny and the road surface was dry.



Segment Segment Time Travel Length Travel Time per mile Speed

55 mph 32.1 mi. 35 min 01 sec 1 min 5 sec 55 mph Measured (Ave.) 32.1 mi. 38 min 17 sec 1 min 11 sec 50 mph

Noted factors that increase delay for this segment are:

• Turning traffic onto side roads without designated turning lanes • Steep grades without climbing lanes for heavy vehicles • Heavy vehicles entering corridor • Stop controlled intersections • Traffic signals • Substandard road geometries • Agricultural equipment using roadway • Lack of safe passing opportunities • School bus stops

E. Other Projects

NYSDOT has scheduled the reconstruction of Route 12 from the Village of Sherburne to the Madison County line (PIN 9016.26, currently under construction), relocation of Route 12 in the Hamlet of Paris (PIN 2016.53, currently under construction), realignment of Route 12 in the vicinity of Cranston Road, in the Town of Hamilton in 2002. The rehabilitation through the Village of Waterville is also programmed for 2005.

2.7 Segment 6 - City of Utica (3.9 miles)


The sixth segment of this study is in the City of Utica. This segment primarily has four travel lanes with several signalized intersections and pedestrian crossing. The characteristics of this segment are as follows:


Setting Length Lanes Lane

Width Shoulder Last Improved

Urban 3.9 mi. 4 12 ft 8 ft 1994-1997



Residential/ Commercial

Principal Arterial/ Expressway

2001 Good Rolling

B. Accident Data




446 1 150 97 198



Characteristics Accident Rate Accident Rate Segment 6 4 lanes, divided, urban 5.07 acc/MVM 3.48 acc/MVM


There were no High Accident Locations (HAL’s) identified by NYSDOT for this segment.

C. Traffic

Traffic along this segment consists primarily of local commuter and business traffic. Other traffic noted along the corridor included emergency vehicles.

Present and projected average annual daily traffic (AADT) volumes and the count year directional design highway vehicle (DDHV) are shown in the table


below. The growth factors applied to the existing traffic to predict future volumes were supplied by NYSDOT.

AADT DDHV Count Growth 2002 2005 2015 Trucks (Ave.) (Ave.) Year Factor AADT AADT AADT 30,000 1,830 2000 1.0% 30,800 32,200 37,350 7%

D. Speed Data

A test vehicle method speed study was performed for each segment of the Route 12 corridor, as described in the ITE “Transportation and traffic Engineering Handbook”. In this technique, the driver travels at a representative speed for traffic at every point and time. The timed runs through this segment were performed in the afternoon on April 11, 2002, between and 3:30 and 4:30. The weather was mostly sunny and the road surface was dry.

The posted speed limit for Segment 6 is 40 and 55 mph. The average travel time recorded for this segment is noted below.

Segment Segment Time Travel Length Travel Time Per Mile Speed 55 mph 3.9 mi. 4 min 15 sec 1 min 5 sec 55 mph Measured (Ave.) 3.9 mi. 7 min 13 sec 1 min 51 sec 32 mph

Noted factors that increase delay for this segment are:

• Traffic signals • Pedestrian crossings • Substantial traffic volumes

E. Other Projects

NYSDOT has no known improvements scheduled for this section of Route 12.


2.8 Summary

In summary, the collected data indicates a number of locations that may require improvements to improve safety and/or decrease travel time. The following table outlines these locations.

Areas of Concern

# Location Segment Accidents

Speed/ Delay Geometry Pavement

1 US Route 11 to NYS Route 12A 1 X X

2 Broome County Highway

Department Entrance 1 X

3 Brotzman Road to River Road 1 X X X 4 Oak Hill Road 1 X

5 Knapp Hill Road to Willard

Road 1 X X X

6 NYS Route 79 1 X X 7 Foster Hill Road 1 X X

8 Laurel Road to South

Chenango Street Extension 1 X X X

9 Raymond Corporation

Entrance 1 X

10 NYS Route 206 to

NYS Route 41 2 X X X

11 NYS Route 41 to County

Route 3A 2 X

12 Bunt Road to Hogsback Road 2 X 13 Brisben to Hill Road 2 X X

14 Canal Street to NYS Route 220 2 X X

15 County Route 4 2 X 16 County Route 32B 2 X

17 Lower Ravine Road to

City of Norwich 2 X X

18 City of Norwich 3 X

19 Woods Corners/NYS Route

320 4 X X X


Areas of Concern

# Location Segment Accidents

Speed/ Delay Geometry Pavement

20 Solid Waste Facility Entrance 4 X 21 Wilson Road to North Norwich 4 X 22 Village of Sherburne 4 X X

23 NYS Route 12B to Madison

County Line 5 X X 24 Brookfield 5 X

25 Stockwell 5 X X 26 US Route 20 Sangerfield 5 X X 27 Village of Waterville 5 X X X X 28 Daytonville 5 X X

29 Hamlet of Paris 5 X X X 30 Burmaster Road 5 X X 31 Clarey Road 5 X X 32 Paris Road to NYS Route 5 5 X X 33 NYS Route 5 to I-90 6 X X

Location number corresponds to Appendix A maps.


CONCEPT DEVELOPMENT


3 CONCEPT DEVELOPMENT 3.1 Concepts Considered

A. Turning Lane Additions/Modifications:

Turning lanes are dedicated for vehicle turning movements at intersections. They improve safety by separating turning traffic from the thru-traffic lanes. An exclusive turning lane allows turning vehicles to decelerate and exit thru-traffic for the turning movement, thereby reducing the potential for rear-end collisions, and increasing overall highway capacity. Vehicles making a right turn must slow to a speed that is acceptable to turn. Thru-traffic must therefore slow to this speed as well, and then accelerate back to the original operating speed. Vehicles making a left turn can potentially cause more delay than a vehicle turning right. A left turning vehicle may decelerate to a stop to wait for oncoming traffic to clear. Traffic following the turning vehicle(s) has to decelerate, wait for the turning movement, and then accelerate to the original operating speed.

B. Climbing/Passing Lanes Additions/Modifications:

Climbing and passing lanes are generally additional thru-lanes to allow passing of slow moving vehicles on steep grades or at locations of potential left-turning movements. Removing slow moving vehicles from the high-speed lane and allowing for a more uniform travel speed can improve the capacity for the roadway. Slow moving vehicles enter the climbing lane, allowing platooned vehicles the opportunity to pass. Climbing lanes can also reduce the potential for the unsafe passing of slow moving vehicles on grades.

C. Geometric Improvements:

Geometric improvements may include highway realignment, horizontal and/or vertical curve enhancements, removal of impediments to


appropriate site distance, widening traffic lanes and/or shoulders, improvements to intersection geometry, etc. Locations of non-standard horizontal and vertical conditions are often associated with accident clusters, and may also increase overall travel time.

D. Pavement and/or Shoulder Replacement:

Replacement or rehabilitation of pavement and shoulders that have outlived their designed purpose provides safer roads and improved riding conditions. Areas with poor pavement conditions and narrow shoulders tend to decrease safety, driver confidence, and increase travel times due to lower speeds.

3.2 Proposed Improvements and Locations

The following improvements and locations are recommended for further consideration. As in the Data Collection tasks, the proposed improvements are grouped by the previously identified segments.

Segment 1 – US Route 11 to NYS Route 206

1. Broome County Highway Department Entrance - Add a left turn lane for southbound traffic.

2. Brotzman Road to River Road - Lengthen existing turn lanes at Port Road; add a left-turn lane southbound and a right-turn lane northbound at River Road.

3. Oak Hill Road - Lengthen existing climbing lanes in both directions. 4. Knapp Hill Road to Willard Road - Horizontal and vertical realignments. 5. NYS Route 79 - Add right-turn lane at 79W southbound; add left-turn

lane at NYS Route 79E southbound. 6. Foster Hill Road - Horizontal and vertical realignments. 7. Laurel Road to South Chenango Street Extension - Pavement and

shoulder improvements. 8. Raymond Corporation Entrance - Add a right-turn lane northbound, and

a left-turn lane southbound.


Segment 2 – NYS Route 206 to City of Norwich

1. NYS Route 206 to NYS Route 41 - Add left-turn lanes northbound and southbound at NYS Route 206; add a left-turn lane northbound and a right-turn lane southbound at NYS Route 41.

2. NYS Route 41 to County Route 3A - Shoulder improvements; add northbound acceleration lane from concrete plant.

3. Bunt Road to Hogsback Road - Shoulder improvements; realignment 4. Brisben to Hill Road - Geometric and shoulder improvements. 5. Canal Street to NYS Route 220 - Add a left-turn lane northbound at

NYS Route 220W; add right-turn lanes northbound and southbound at NYS Route 220E.

6. County Route 4 - Add a left-turn lane northbound. 7. County Route 32B - Add a left-turn lane southbound. 8. Lower Ravine Road to City of Norwich - Horizontal realignments.

Segment 3 – City of Norwich

1. City of Norwich - NYS Route 23 intersection improvements. Segment 4- City of Norwich to NYS Route 12B

1. Woods Corners/NYS Route 320 - Lengthen right-turn lane northbound, and left-turn lane southbound at NYS Route 320.

2. Solid Waste Facility Entrance - Add left-turn lane northbound, and right-turn lane southbound.

3. Wilson Road to North Norwich railroad - Horizontal realignments. 4. Village of Sherburne - Add two-way left-turn lane.

Segment 5 – NYS Route 12B to NYS Route 5

1. NYS Route 12B to Madison County Line - Change stop condition at

intersection with 12B. 2. Brookfield - Add right- turn lane northbound. 3. Stockwell - Horizontal realignment. 4. US Route 20 Sangerfield - Add left-turn lanes northbound and

southbound; widen roadway at railroad overpass. 5. Village of Waterville - Add left-turn lanes in Village. 6. Daytonville - Horizontal realignment near Summit Road. 7. Hamlet of Paris – Bypass currently under construction.


8. Burmaster Road - Horizontal and vertical realignments. 9. Clarey Road – Horizontal and vertical realignments. 10. Paris Road to NYS Route 5 - Add climbing lanes southbound;

Horizontal realignment.

Segment 6 – NYS Route 5 to I-90 There are no proposed improvements in this segment.


3.3 Safety and Travel Time Benefits

The estimated reductions in travel time and accidents listed in the following table are approximate, and were determined based on the previously recommended improvements.

Reduction in Travel Time Reduction in

Accidents Location Northbound Southbound per year

US Route 11 to NYS Route 12A N/A N/A N/A Broome County Highway Department Entrance N/A 14 sec N/A

Brotzman Road to River Road 15 sec 15 sec 9 Oak Hill Road 10 sec 10 sec 6

Knapp Hill Road to Willard Road 2 sec 2 sec 7 NYS Route 79 N/A 7 sec 7

Foster Hill Road 2 sec 2 sec 2 Laurel Road to South Chenango Street Extension N/A N/A 2

Raymond Corporation Entrance 8 sec 14 sec N/A NYS Route 206 to NYS Route 41 9 sec 9 sec 5

NYS Route 41 to County Route 3A 10 sec 10 sec N/A

Bunt Road to Hogsback Road 2 sec 2 sec 4 Brisben to Hill Road 2 sec 2 sec 2

Canal Street to NYS Route 220 7 sec N/A 2

County Route 4 14 sec N/A N/A County Route 32B N/A 14 sec N/A

Lower Ravine Road to City of Norwich 2 sec 2 sec 13

City of Norwich 10 sec 10 sec N/A Woods Corners/NYS Route 320 5 sec 5 sec N/A Solid Wastes Facility Entrance 14 sec 8 sec N/A

Wilson Road to North Norwich RR 2 sec 2 sec 2

Village of Sherburne 21 sec 21 sec 17 NYS Route 12B to Madison County Line N/A 7 sec N/A

Brookfield 8 sec N/A N/A Stockwell 2 sec 2 sec 6

US Route 20 Sangerfield 7 sec 7 sec 3 Village of Waterville 20 sec 20 sec 6

Daytonville 2 sec 2 sec 2 Hamlet of Paris N/A N/A N/A Burmaster Road 2 sec 2 sec 3

Clarey Road Area 2 sec 2 sec 2 Paris Road to NYS Route 5 N/A 110 sec SB N/A

NYS Route 5 to I-90 N/A N/A N/A


3.4 Cost Estimates The estimated costs of improvements include construction, engineering, and other miscellaneous project costs. They are for planning purposes only.

Location Estimated Cost of

Improvements Estimated Cost of

Right-of-Way

US Route 11 to NYS Route 12A N/A N/ABroome County Highway Department Entrance $380,000 $25,000

Brotzman Road to River Road $380,000 $30,000Oak Hill Road $300,000 $30,000

Knapp Hill Road to Willard Road $1,000,000 $70,000NYS Route 79 $350,000 $20,000

Foster Hill Road $1,450,000 $70,000Laurel Road to South Chenango Street Extension $1,500,000 $0

Raymond Corporation Entrance $350,000 $20,000NYS Route 206 to NYS Route 41 $550,000 $40,000

NYS Route 41 to County Route 3A $2,000,000 $10,000

Bunt Road to Hogsback Road $1,450,000 $70,000Greene/Oxford Town Line to Hill Road $1,150,000 $60,000

Canal Street to NYS Route 220 $450,000 $5,000

County Route 4 $300,000 $20,000County Route 32B $300,000 $20,000

Lower Ravine Road to City of Norwich $1,450,000 $80,000City of Norwich $400,000 $10,000

Woods Corners/NYS Route 320 $300,000 $10,000Solid Wastes Facility Entrance $1,100,000 $30,000

Wilson Road to North Norwich RR $1,000,000 $70,000

Village of Sherburne $1,300,000 $220,000NYS Route 12B to Madison County Line $10,000 $0

Brookfield $80,000 $10,000Stockwell $1,000,000 $70,000

US Route 20 Sangerfield $8,000,000 $140,000Village of Waterville $450,000 $60,000

Cassville $1,000,000 $70,000Village of Paris N/A N/ABurmaster Road $1,000,000 $70,000

Clarey Road $1,000,000 $70,000Paris Road to NYS Route 5 $4,000,000 $200,000

NYS Route 5 to I-90 N/A N/AEstimated Totals $34,000,000 $1,600,000


ECONOMIC ANALYSIS


NYS Route 12 Corridor Study - Phase I Economic Impact of Proposed Improvements


Table of Contents

4.1 INTRODUCTION

Corridor Overview

Stakeholder Issues

Report Structure

4.2 SOCIO-ECONOMIC PROFILE

Major Employers

Developable Industrial Space

Population and Employment

Tourism Travel

4.3 ECONOMIC BENEFITS OF PHASE I IMPROVEMENTS

Benefits of Proposed Phase I Improvements

Case Study: Economic Impact of Four Major Employers

4.4 CONSIDERATIONS FOR PHASE II

Introduction

Definition of Economic Development

Economic Basis for a Feasible Highway Project

Four Economic Development Causes

4.1 INTRODUCTION This section provides an overview of the Route 12 corridor study area, major corridor issues identified by stakeholders, and the purpose of this report.

Corridor Overview NYS Route 12 is a principal two-lane north-south commercial and residential corridor which connects Binghamton to Utica. For the purposes of this report, the Route 12 corridor study areas begins in Broome County at the intersection with US Route 11


and extends northerly through Chenango County, Madison County, and ends at the junction with Interstate 90 in Oneida County, a total of approximately 84 miles. The primary issue associated with Route 12 is congestion - particularly in cities and towns where the highway goes through downtown core areas. Route 12 has significant truck traffic servicing local business and industry. Trucks are often forced to slow because of excessive grades – leading to traffic backups. School bus traffic throughout the corridor and farm equipment (particularly in the northern part of the corridor) results in significant impediments to traffic associated with pick-ups and deliveries – along with those commuting to jobs in the corridor region.

Major businesses in the Route 12 corridor region, such as The Raymond Corporation, OSG Norwich Pharmaceuticals, and Unison Industries depend on highway system reliability (i.e. travel time predictability), access to suppliers and markets, and an adequate workforce in order to locate and remain in the area. Congestion in cities and towns along Route 12 is eroding system reliability which is impacting the ability of companies to access suppliers and markets. It is also resulting in reduced quality of life, making attracting and retaining an adequate workforce increasingly difficult.

Without major improvements to the Route 12 corridor it is possible that major employers could, facing competition and cost pressures, decide to exit the region and locate elsewhere. This would create direct and indirect loss of jobs, earnings, and economic activity – furthering the apparent socio-economic decline of the area.

For analysis purposes, the Route 12 corridor has been separated into six (6) segments. These segments, starting at the south end, are:

• Intersection of US Route 11 to NYS Route 206 (14.3 miles)

• NYS Route 206 to City of Norwich southerly limit (20.6 miles)

• City of Norwich (1.7 miles)

• City of Norwich northerly limit to NYS Route 12B (11.5 miles)

• NYS Route 12B to NYS Route 5 overlap (32.1 miles)

• NYS Route 5 overlap to Interstate 90 (3.9 miles)

A map of the Route 12 corridor study area is presented in Exhibit I-1.


Exhibit I-1 Route 12 Corridor Study Area


Stakeholder Issues Stakeholder input has affirmed the importance of economic development to the Route 12 corridor region. The following important issues and/or themes have emerged from stakeholder input:

• System Reliability – Route 12 is experiencing significant degradation in system reliability or predictability of travel times. This is due for the most part to bottlenecks in cities and towns along the corridor.

• Business Access to Suppliers and Markets – Businesses along the Route 12 corridor are finding it increasingly difficult, due to system unreliability, to access suppliers and markets with the certainty they require.

• Business Attraction and Retention – The remoteness of the Route 12 corridor and system unreliability are making it difficult to attract new businesses and retain existing businesses. Businesses respond to competitive pressures and costs – both of which become issues when faced with a lack of system reliability.

• Changes in Fuel Storage – New York State has seen a dramatic decrease in available storage facilities for petroleum products (gasoline, diesel, heating oil, etc.). This has led to more trucks being on the road to haul from production and storage facilities farther and farther away. As travel times on Route 12 increase, costs to suppliers (and ultimately consumers) increase.

• Tourism Attraction and Retention – When tourists experience congestion and lengthy travel times they may decide on alternate locations to recreate.

• Workforce Attraction, Retention, and Quality of Life for Region Residents – Businesses need an adequate workforce to locate along the Route 12 corridor. The degradation of the Route 12 corridor is reducing the quality of life and attractiveness of the region as a place to live.

Judging by these issues, it is clear that economic development will be a major focus of on-going analysis of Route 12 corridor investment options.

Report Structure The balance of this report is presented in the following sections:

• Socio-Economic Profile – Provides socio-economic data for the Route 12 corridor region including major employers, developable industrial space, population and employment history and projections, and the nature of tourism travel in the region.


• Economic Benefits of Phase I Improvements – The benefits of proposed Phase I improvements are estimated using conventional highway economic evaluation methodology. In order to demonstrate the importance of major long term improvements to the Route 12 corridor to retain existing industry, the economic contribution that four major employers make to the corridor region is also estimated.

• Considerations for Phase II – Outlines the need to consider major long-term improvements to the Route 12 corridor in Phase II in order to promote economic development goals for the region.

The data request form used to gather payroll and non-payroll spending in the four county region for the case study analysis of four major employers is included in the appendix.


4.2 SOCIO-ECONOMIC PROFILE This section provides socio-economic data for the Route 12 corridor region including major employers, developable industrial space, population and employment history and projections, and the nature of tourism travel in the region.

Major Employers

Route 12 is a principal commercial highway in the four-county corridor region and it provides direct access to many of the region’s major employers. Exhibit II-1 shows major employers in the Route 12 corridor region for three different categories.

Exhibit II-1 Route 12 Corridor Major Employers – More than 500 Employees


The concentration of major employers in Norwich is notable as it is located essentially midway along the Route 12 corridor. The travel reliability of Route 12 is of key concern to this community for access and economic vitality.

Exhibit II-2 details the major employers in the more than 500 employee category.

Exhibit II-2 Route 12 Corridor Major Employers – More than 500 Employees

Business Name Type of Business Location Number of Employees

Chenango County Government

County government services and public works.

Norwich 550

Chenango Memorial Hospital

Health and long term care. Norwich 600

Colgate University University. Hamilton. 750 NBT Bank Financial services. Norwich 500 New York Central Mutual

Personal insurance company. Edmeston 1063

The Raymond Corporation

Manufacturer of material handling equipment.

Greene 1100

Sherburne-Earlville Schools

Regional school system. Sherburne 500

Utica National Insurance Insurance services. New Hartford

800

While not within the four-county corridor region, certain major employers in Sidney (Delaware County) frequently access the Route 12 corridor. These include Amphenol Corporation (electronic connectors), MeadWestvaco (calendar manufacturer), and Mirabito Fuel Group (energy distributor).

Exhibit II-3 details the major employers in the more than 201 to 499 employee category.

Exhibit II-3 Route 12 Corridor Major Employers – 201 to 499 Employees


BOCES (Board of Cooperative Educational Services)

Technical and cooperative education.

Norwich 350

Citizens Communications

Telephone company. Norwich 290

Greene Central Schools School system. Greene 225 Hamilton Central School District

Regional school system. Hamilton 300



New York State Veteran’s Home

Long term care home. Oxford 300

Norwich City Schools School system. Norwich 400 OSG Norwich Pharmaceuticals

Contract packager. Norwich 250

Oxford Academy Central School

School system. Oxford 215

Preferred Mutual Insurance

Property-casualty insurance. New Berlin 265

Procter & Gamble Pharmaceuticals, Technical Center

Research & development of pharmaceutical products.

Norwich 300

Titan Homes Manufactured homes. Sangerfield 220 Unadilla Valley Central School

School system. New Berlin 225

Unison Industries Manufacturer of aircraft parts. Norwich 311 Valley Ridge Center for Intensive Treatment

Medical treatment center. Norwich 225

Exhibit II-4 details the major employers in the more than 75 to 200 employee category.

Exhibit II-4 Route 12 Corridor Major Employers – 75 to 200 Employees


Afton Central School School system. Afton 150 Baillie Lumber Company Lumber. Smyrna 100 Bainbridge Guilford School

School system. Bainbridge 198

Blueox Corporation Petroleum and convenience stores.

Oxford 78

Chase Memorial Nursing Home

Long term care home. New Berlin 130

Chenango Valley Pet Foods

Pet food manufacturer. Sherburne 94

CWS (Community Workshop)

Sheltered workshop. Norwich 120

Doris L. Patrick Retirement Facility

Retirement campus and skilled nursing.

Norwich 115

Elmers Products, Inc Adhesive and sealant manufacturer.

Bainbridge 96

Golden Artist Colors Artist paint manufacturer. New Berlin 105 IVCI Telephone contractors. Afton 160 IL Ritcher Agricultural Services Sangerfield 98



Mang Group, The Insurance and financial services. Norwich. 105 Mid-York Press, Inc. Package printer. Sherburne 75 Norwich Aero Products Manufacturer of temperature

sensors/thermocouples. Norwich 112

Norwich Family YMCA Fitness and recreation. Norwich 86 Opportunities for Chenango, Inc.

Community support organization.

Norwich 160

Otselic Valley Central School

School system. So. Ostelic 103

Price Chopper Supermarkets

Food store. Norwich 115

Quest International Manufacturer of pharmaceutical ingredients and food flavoring.

Norwich 121

Snyder Communications Media. Norwich 161 Tops Friendly Markets Food store. Norwich 93 Valley View Nursing Home

Long term care home. Norwich 100

Wal-mart Department store. Norwich 156 Webb & Sons, Inc. (Lok-N-Logs)

Wholesale and retail lumber and building supplies. Manufacturer of log homes.

Sherburne 102

Developable Industrial Space Developable industrial space along the Route 12 corridor includes:

• Airport Industrial Park Parcel “A”, North Norwich (8.22 acres total, 4 acres occupied).

• Airport Industrial Park Parcel “B” – Proposed, North Norwich (10.2 acres).

• Earl B. Clark Industrial Park, North Norwich (47 acres total, 12 acres occupied).

• Mid-York Business Park, Madison County (58 acres total, 6 acres occupied).

• Deerfield Route 12 N., Oneida County (62 acres total, 7.5 acres occupied) and several industrial development sites in the vicinity of Route 12 and Route 20.

The availability of developable industrial space along the route 12 corridor presents the opportunity to attract business if other aspects of the location (including the transportation system) are desirable to potential investors. The location of industrial sites at airports can be attractive to high tech and aviation related industries interested in easy air freight access.


Population and Employment The population and employment data presented in this section do not include the major population centers of Binghamton and Utica at either end of the Route 12 corridor. The Phase I improvements are expected to impact only current users of Route 12 within the study area (as explained in Section 4.3) and are not expected to influence trade flows and logistic patterns in Binghamton and Utica. These network effects, and the impacts on Binghamton and Utica, will be considered in Phase II.

The Route 12 corridor region has been characterized by declining population during the past decade.

Madison County was the only county out of the four (Broome, Chenango, Madison, and Oneida) which did not experience declining population during the nineties. In total, the region’s population declined by nearly 4.9 percent, translating into over 28,000 fewer residents. Exhibit II-5 provides an overview of the region’s population history and forecast. The population in Broome and Oneida Counties is projected to continue to decline through the year 2020 while modest increases are projected for Chenango and Madison Counties. In total, a 0.9 percent decline is projected in the region’s population between 2000 and 2020. As can be seen, the population trend in the Route 12 corridor region is projected to significantly lag that of the state as whole, suggesting that regional attributes and not statewide trends are giving rise to the decline.

Exhibit II-5 Route 12 Corridor Region: Population History and Forecast

1990

2000

2010

2020

% Change 1990-2000

% Change 2000- 2020

Broome 212.0 200.1 197.8 197.3 -5.6% -1.4% Chenango 51.8 51.4 51.8 52.7 -0.8% 2.6% Madison 69.3 69.4 70.8 72.9 0.1% 5.1% Oneida 251.0 235.0 230.6 228.2 -6.4% -2.9% Region Total

584.3 555.9 551.0 551.1 -4.9% -0.9%

State Total 18,002.9

18,989.3

19,652.2

20,492.0

5.5% 7.9%

Source: Woods & Poole, 20021

1 The population data in the Woods & Poole database are generally consistent with data from other sources, including the Census Bureau. The most significant difference between the Census Bureau data used by Woods & Poole and the actual 1970, 1980, 1990, and 2000 Census results is that Woods & Poole data are July 1-based and the decennial census data are April 1-based. Decennial census data were adjusted forward from April 1 to July 1 to make them consistent with population data for other years as well as with the employment and income data, which are also July 1-based.


Despite the historical and projected contraction in population, the region enjoyed positive employment growth from 1990 to 2000 and the forecast is for the growth to continue into 2020. Exhibit II-6 displays the employment outlook for the region and the state. It should be noted that while the Route 12 corridor region experienced modest employment growth, it lagged the state as a whole. However, projections indicate that future employment growth in the region will out-pace statewide growth.

Exhibit II-6 Route 12 Corridor Region: Employment History and Forecast (in thousands)

1990

2000

2010

2020

% Change 1990-2000

% Change 2000- 2020

Broome 124.5 122.4 127.8 136.7 -1.7 11.7 Chenango 23.1 23.6 24.4 25.5 2.2 8.1 Madison 27.1 31.2 34.3 37.1 15.1 18.9 Oneida 133.0 135.7 146.5 159.7 2.0 17.7 Region Total

307.7 312.9 303.0 359.0 1.7 14.7

State Total 9,818.9 10,394.3

10,900.8

11,624.3

5.9 11.8

Source: Woods and Poole, 2002 Changes in employment levels should not be evaluated in isolation. In order to gain a better perspective of a regions underlying economy, changes in the employment mix should also be examined. Exhibit II-7 provides a breakdown of employment by industry in 1990 and 2000 for the state and the region. The service sector of the economy was and continues to be the single most important sector of the economy in terms of employment. Although the Route 12 region experienced a larger percentage increase in the relative importance of the service sector between 1990 and 2000, it continues to be less reliant on the service sector than the state as whole. Not surprising, the Route 12 region has historically been and continues to be more dependent on manufacturing industries. Both the region and the state suffered declines in manufacturing employment, both in terms of the number of jobs and as a percentage of total employment. Data provided by the U.S. Bureau of Economic Analysis indicate manufacturing employment at the state level declined by 21.7 percent or nearly 251,000 jobs between 1990 and 2000. Similarly, the Route 12 region witnessed a 23.3 percent contraction, translating into a loss of nearly 13,000 manufacturing jobs.


Exhibit II-7 Percent of Employment by Industry, 1990 and 2000

1990 2000 NY State Region NY State Region Agricultural services, fishing and forestry

0.6

0.6

0.7

0.7

Mining 0.1 0.1 0.1 0.1 Construction 4.4 4.9 4.4 4.4 Manufacturing 11.8 18.3 8.6 13.7 Transportation and utilities 4.9 3.5 5.0 3.7 Wholesale trade 5.1 3.9 4.6 3.8 Retail trade 14.1 17.9 14.1 17.4 Finance, insurance and real estate

11.0 6.5 10.9 6.8

Services 32.4 25.2 37.5 32.8 Government 15.7 19.2 14.1 16.7

Source: U.S. Bureau of Economic Analysis Another notable trend is the general decline in the percentage of employment in the public sector both statewide and within the region.

Per capita income is another measure commonly used to gauge the economic well-being of an area. Exhibit II-8 illustrates the performance of each of the Route 12 region counties relative the state of New York as a whole. As can be seen, all four counties lag the state with Chenango displaying the most significant differential. Despite the fact that per capita income increased in all four counties throughout the nineties, no progress was made on closing the gap between the counties and the statewide average. Madison County experienced the most significant increase as per capita income rose from $16.6 thousand to $24.5 thousand. As a result, Madison County surpassed Oneida County and had the highest per capita income in the Route 12 region in 2000.


Exhibit II-8 Per Capita Income - 1990, 1995 and 2000

0

5000

10000

15000

20000

25000

30000

35000

40000

1990 1995 2000

Do

llars

New York Broome Chenango Madison Oneida

Source: U.S. Bureau of Economic Analysis Another useful method of evaluating the standard of living in a particular region of the U.S. is to calculate the region’s per capita income as a percentage of the nationwide average. This exercise provides an index in which regions can measure their performance. Exhibit II-9 displays the per capita indices for the state of New York and each of the four counties in the Route 12 region. The statewide per capita income index is well above 100 indicating the state average is greater than the national average. The same is not true for the study counties. All four counties have indices less than 100, indicating below average per capita income. Furthermore, all four counties experienced a decline in their indices. This suggests that the region not only lags the nation in terms of per capita income, but the gap is getting wider.


Exhibit II-9 Per Capita Income Indices - 1990, 1995, 2000

0

20

40

60

80

100

120

140

1990 1995 2000

Per

cent

of

Nat

iona

l Ave

rage

New York Broome Chenango Madison Oneida

Source: U.S Bureau of Economic Analysis

While population and employment statistics can offer a glimpse into the general state of an area, more detailed analysis is necessary to gain an understanding of the under-lying implications of changes in population and employment on economic well-being. The following sections provide a more in-depth examination of population forecast as well as the employment outlook for each of the four counties included in the current study.

Broome County Broome County sustained a significant decline in population from 1990 to 2000 and is projected to continue to lose residents throughout the next two decades, although at a slower pace. Chenango Bridge and Chenango Forks are located on the Route 12 corridor in Chenango County.

Despite the projected decline in population, employment in the county is projected to increase. Exhibit II-10 displays the relationship between population and employment projections for Broome County.


Exhibit II-10 Population and Employment Projections

Broome County, New York

0.00

50.00

100.00

150.00

200.00

250.00

1970 1980 1990 2000 2005 2010 2015 2020

Year

Th

ou

san

ds

TOTAL POPULATION TOTAL EMPLOYMENT

Source: Woods & Poole, 2002 While it may seem counter-intuitive for employment projections to be positive given that population projections are negative, it should be noted that employment increases can occur simply due to higher labor participation rate.2 In other words, persons who are legally and physically able to work but chose not to seek employment may decide to start working, especially if new opportunities become available. In this case, there has been no change in population but an increase in employment.

An investigation into the composition of population by age group provides additional insight into the opposing growth trends. A breakdown of population by age group, provided in Exhibit II-11, reveals that only age groups 55 to 64 and 65 and older are projected to increase over the 2000 to 2020 time period. However, according to the U.S. Bureau of Labor Statistics (BLS), this is also the segment of the population that is projected to have the largest increase in its labor participation rate. This is not surprising given the national trend with regards to aging baby boomers combined with improved healthcare, longer life expectancies and gradual increases in the retirement age. It should also be noted that the projected decline in the population within a particular age range does not automatically translate into declining employment within that age group. This would only be the case if the decline in population were to be greater than the number of individuals within that age group not currently participating in the labor force.

2 Labor participation rate is defined as the percentage of the population that is employed or actively seeking employment. An individual must have sought employment within the previous two week period to be considered as actively seeking employment.


Exhibit II-11 Population Projections by Age Group


0

10

20

30

40

50

60

70

80

1990 2000 2005 2010 2015 2020

Po

pu

lati

on

(in

tho

usa

nd

s)

AGE 0 TO 24 YEARS AGE 25 TO 34 YEARS AGE 35 TO 54 YEARS

AGE 55 TO 64 YEARS AGE 65 AND OVER

Source: Woods & Poole, 2002 Another factor that should be considered when evaluating employment projections relative to population projections is commuting patterns. In 1990, 16.8 percent of the workers in Broome County commuted to work from outside the county. The county with the largest number of commuters to Broome County was Susquehanna County. Tioga County was a distant second. 3 Therefore, population patterns in these counties could have a significant impact on the labor pool for businesses located in Broome County.

Despite the 5.6 percent decline in total population during the nineties, Broome County sustained only a 1.7 percent, or 1,441 jobs, contraction in employment. The largest decline in terms of total number of jobs was in the manufacturing sector, while the largest expansion was in service industries. Exhibit II-12 details the change in employment mix for Broome County between 1990 and 2000. Although mining services recorded the largest percentage decline, the actual decline in the number of jobs was 40.

3 U.S. Census Bureau, 1990 Journey to Work Data.


Exhibit II-12 Percent of Employment by Sector


1990 2000 % Change Agricultural services, fishing and forestry 0.5 0.5 3.9 Mining 0.1 0.1 -38.5 Construction 5.2 4.7 -11.5 Manufacturing 23.4 15.4 -34.7 Transportation and utilities 3.7 4.5 19.1 Wholesale trade 3.9 4.1 4.0 Retail trade 17.7 17.2 -4.0 Finance, insurance and real estate 5.7 6.1 6.6 Services 24.8 31.4 25.0 Government 15.1 16.1 5.4

Source: U.S. Bureau of Economic Analysis The most unexpected change was the decline in retail trade employment. Employment in the retail trade sector witnessed significant growth nationwide during the nineties, due in large part to ever increasing consumer demand. Also notable is the fact that despite the declining population, public sector employment expanded by more than 5 percent. Specifically, employment in the local government sector increased by 8.2 percent, translating into 902 additional jobs.4

Chenango County Chenango County is the smallest of the four counties in the Route 12 region in terms of population. However, Norwich and surrounding area is the largest population center on the Route 12 corridor. Several major employers are located in the Norwich area. In addition, Greene, Brisben, Oxford, North Norwich and Sherburne are important towns located along the corridor.

During the nineties the county experienced modest population contraction of 0.8 percent. Population is forecasted to reverse the trend and expand by 2.6 percent between 2000 and 2020. Employment is projected to expand by 8.1 percent over that same time period (see Exhibit II-13). As can be seen, population and employment have trended in the same direction in Chenango County in past decades and the projection is for the pattern to continue until year 2020.

4 U.S. Bureau of Economic Analysis


Exhibit II-13 Population and Employment Projections for Chenango County

(in thousands)

0.00

10.00

20.00

30.00

40.00

50.00

60.00

1970 1980 1990 2000 2005 2010 2015 2020 2025

TOTAL POPULATION (THOUSANDS) ....

TOTAL EMPLOYMENT (THOUSANDS) ....

Source: Woods & Poole, 2002 A more detailed breakdown of projected population growth by age group is provided in Exhibit II-14. Three age groups, 25 to 34, 55 to 64 and 65 and over, are projected to increase during the 2000 to 2020 time period. The other groups, under 24 and 35 to 54, are projected to decline. The fact that the number of residents aged 25 to 34 is projected to increase provides a potential boost for the county. However, failure to provide adequate employment and economic opportunities in the region is likely to prevent the realization of the projections.

Exhibit II-14

Population Projections by Age Group, Chenango County

02

468

1012

1416

1820

1990 2000 2005 2010 2015 2020

Po

pu

latio

n (i

n th

ou

san

ds)



Source: Woods & Poole, 2002


Chenango County experienced the least amount of shifting in employment mix relative to the other three counties in the study region. Exhibit II-15 provides a summary of the change in employment mix for the county. The most significant contraction in employment was in the manufacturing sector, which declined by 11.9 percent. However, several sectors of the economy experienced double-digit growth in employment including construction, services and transportation and public utilities.

Exhibit II-15 Percent of Total Employment by Sector

Chenango County

1990 2000 % Change Agricultural services, fishing and forestry 1.0 1.3 32.3 Mining 0.2 0.2 25.0 Construction 5.1 6.5 31.9 Manufacturing 23.3 19.6 -11.9 Transportation and utilities 3.5 3.9 19.0 Wholesale trade 2.3 2.2 -2.0 Retail trade 18.9 16.0 -10.8 Finance, insurance and real estate 7.0 7.6 14.6 Services 20.7 24.4 23.7 Government 18.1 18.3 6.2

Source: U.S. Bureau of Labor Statistics Madison County Madison County was the only county from the region that witnessed population growth from 1990 to 2000, as the county recorded a modest 0.1 percent increase. The county is projected to continue to be the fastest growing county in the region, although the growth rates remain modest. The town of Brookfield and Poolville and Hubbardsville (unincorporated hamlets of Hamilton) are located within the Route 12 corridor vicinity.

Exhibit II-16 compares projected population growth to projected employment growth for Madison County. Employment growth is expected to be more robust than population growth. For example, the projected employment growth is 18.7 percent from 2000 to 2020 compared to 5.1 percent population growth for the same time period.



Madison County

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

1970 1980 1990 2000 2005 2010 2015 2020 2025



Source: Woods & Poole, 2002 An adequate labor pool will be necessary to support the robust employment growth that is projected for the county. Analysis of projected population growth by age group is provided in Exhibit II-17. The county is projected to experience growth in critical age groups including persons aged 25 to 35 and 55 to 64. Expansion in these age groups will play a vital role in realizing employment growth. Another source of labor force participants will come from neighboring counties. Madison County had the largest percentage of commuters in the region in 1990, reporting a 29.6 percent commuting rate. Oneida County was the most significant supplier of commuters. The above average commuting rate suggests that the ability to expand employment in Madison County will in part depend on the labor pool of neighboring communities.


Exhibit II-17 Population Projections by Age Group

Madison County

0

5

10

15

20

25

30

1990 2000 2005 2010 2015 2020

Po

pu

latio

n (i

n th

ou

san

ds)



Source: Woods & Poole, 2002 In addition to being the only county in the region to experience population growth during the nineties, Madison County was also the only county that witnessed employment growth in the manufacturing sector. Exhibit II-18 provides a breakdown of the employment mix in 1990 and 2000 for Madison County. Manufacturing employment expanded by 24.1 percent or 648 jobs. The largest decline in employment was in the public sector as the number of residents in Madison County employed by federal, state or local governments contracted by 10.3 percent, translating into 513 fewer jobs.

Exhibit II-18

Percent of Employment by Sector Madison County

1990 2000 % Change Agricultural services, fishing and forestry 1.4 1.8 54.3 Mining 0.2 0.3 78.6 Construction 6.6 5.8 2.8 Manufacturing 10.5 11.1 24.1 Transportation and utilities 2.6 2.3 1.0 Wholesale trade 4.6 3.5 -10.2 Retail trade 20.9 20.7 15.6 Finance, insurance and real estate 4.8 5.5 36.4 Services 29.1 34.2 37.8 Government 19.4 14.9 -10.3 Source: U.S. Bureau of Economic Analysis


Oneida County Oneida County is the largest of the four counties in terms of both population and employment. The towns of Sangerfield, Waterville, and Paris are located on the Route 12 corridor. During the nineties, Oneida County experienced a 6.4 percent decline in population and a 2.0 expansion in employment. Both trends are projected to continue, as shown in Exhibit II-19. The 2020 forecast projects a 2.9 percent decline in population from the 2000 level and a 17.6 percent expansion in employment.


Oneida County

0.00

50.00

100.00

150.00

200.00

250.00

300.00

1970 1980 1990 2000 2005 2010 2015 2020 2025



Source: Woods & Poole, 2002 Again, population changes by age group will play a crucial role in the ability of Oneida County to realize the optimistic employment projections. Exhibit II-20 provides a detail breakdown of population projections by age group for the county. Between the year 2000 and 2020, Oneida County is projected to experience population growth in only two age categories, 55 to 64 and 65 and over. The fact that other important age groups, including 25 to 34 and 35 to 55, are projected to decline raises questions about the ability of the county to maintain a sufficient labor pool for the projected employment growth.

Increasing these concerns is the fact that traditionally Oneida County has had the lowest percentage of commuters in the four county region. In 1990, the percentage of workers commuting from another county was only 14.7 percent. Herkimer County was the single most common home county for commuters to Oneida County. The ability of Oneida County to entice workers form surrounding counties will be key in the county’s ability to expand employment in the coming decades.


Exhibit II-20 Population projections by Age Group

Oneida County

0

10

20

30

40

50

60

70

80

90

100

1990 2000 2005 2010 2015 2020

Po

pu

latio

n (i

n th

ou

san

ds)



Source: Woods & Poole, 2002 An examination of the changing employment mix in Oneida County did not reveal any surprises. As expected, manufacturing employment declined and employment in the service sector expanded. A detail of employment by sector is provided in Exhibit II-21. The service sector remains the single most important sector in terms of employment. The government sector, despite recording the single most significant decline, remained the second most significant sector.

Exhibit II-21 Percent of Employment by Sector

Oneida County

1990 2000 % Change Agricultural services, fishing and forestry

0.5 0.6 13.8

Mining 0.1 0.1 -38.5 Construction 4.3 3.5 -17.4 Manufacturing 14.2 11.7 -15.5 Transportation and utilities 3.4 3.3 -2.1 Wholesale trade 4.0 3.8 -.31 Retail trade 17.3 17.0 0.1 Finance, insurance and real estate 7.4 7.6 4.7 Services 25.5 35.2 40.6 Government 23.3 17.3 -24.0

Source: U.S. Bureau of Economic Analysis


Tourism Travel Tourism travel is an important consideration for the Route 12 corridor region. The area offers scenic vistas, year-round recreational opportunities, and community related events which attract many visitors. Origin-destination (O-D) and other survey information including trip purpose and other trip characteristics were not included within the scope of the Phase I study. For this reason, the following description of tourism travel in the Route 12 corridor region is based largely on information contributed by region stakeholders.

Visitors travel from various locations all over the Eastern Seaboard to reach destinations using Route 12. The movements are heavier during certain times of the year. An example of heavier traffic flows would be the Bouckville Antique show in Madison County. Visitors travel from other parts of New York State, New Jersey, West Virginia, and Pennsylvania to go to the show. The show receives over 100,000 visitors who use Route 12 to arrive at the destination and to return home. The summer travel season along the corridor begins with Memorial Day weekend in middle May and goes through to the middle of September. Many annual weekend summer events throughout the corridor make it an event based destination versus attraction based.

Starting in the fall with hunting season, the corridor region experiences increased tourism travel coming from parts of New York State, New Jersey, West Virginia, and Pennsylvania. Movements are typified by visitors traveling from the south to the north. In the winter, the corridor experiences more travel with snowmobile rigs and trucks moving north to Old Forge, Tug Hill, and other areas to snowmobile for the weekend before returning home along Route 12.

Examples of major events that draw visitors to Route 12 are the: the General Clinton Canoe Regatta (Memorial Day Weekend) with over 30,000 visitors; the Antique Auto Show (Memorial Day Weekend) with 20,000 visitors; the Unadilla National Motocross (July) with 13,000 visitors; the Gus Macker Basketball Tournament (July) with 16,000 spectators; the Chenango County Fair (August) with 33,500 visitors; the Greene Apple Festival (September) with 12,500 visitors; and other such events throughout the corridor. Drive through tourism traffic along Route 12 includes those attending the Annual Antique show in Bouckville and recreating at Tug Hill and Old Forge. Chenango County had 292,000 visitors attend local events in 2001.

The Route 12 corridor has several adjacent hotels and other lodging facilities in other parts of the four county region not directly located on Route 12. In Chenango County there in excess of 200 rooms at six hotels located directly adjacent to Route 12.

Formatted: Bullets and Numbering


4.3 ECONOMIC BENEFITS OF PHASE I IMPROVEMENTS In this section the benefits of proposed Phase I improvements are estimated using conventional highway economic evaluation methodology. In order to demonstrate the importance of major long term improvements to the Route 12 corridor to retain existing industry, the economic contribution that four major employers make to the corridor region is also estimated.

Benefits of Proposed Phase I Improvements Transportation improvements involve a number of distinct types of economic impacts, as follows:

• Direct User (Travel Efficiency) Benefits – These include the benefits realized by travelers in terms of travel time, safety, and vehicle operating costs.

• Direct Economic Development Benefits – The user benefits, in turn, lead to economic benefits in terms of business growth for both users and non-users within a geographic area. Existing businesses may experience benefits from changes in business costs and productivity associated with the direct user benefits. In addition, the changes in labor market access, customer market size, and linkages to other markets and transportation facilities may attract new businesses to the area. Finally, these same changes may attract new tourists to the region.

• Secondary Economic Development Benefits – The direct impacts to businesses may have secondary impacts. Indirect benefits refer to businesses that experience increased intermediate purchases by the direct beneficiaries of the investment. Induced impacts refer to businesses that experience increased consumer spending by employees of the direct and indirect beneficiaries. In this manner, when a transportation project benefits a major employer in a region (e.g., an aircraft parts manufacturer), its impacts ripple throughout the economy, affecting first suppliers to this business (e.g., parts suppliers, banks), and then businesses that provide food, clothing, shelter, and other services to the workers that hold these jobs. Secondary impacts refer to the sum of the induced and indirect impacts. Other secondary impacts may include changes in population and business location patterns, land use and land value patterns, and government costs and revenues. Secondary economic benefits impact not only the corridor region but also surrounding regions.

• Construction Spending Impacts – In addition to these long-term impacts, a regional economy may experience a short-term economic stimulus from redirecting funds for spending on construction of the facilities. The goal is to base transportation investment decisions on long-term economic development impacts rather than on short-term, temporary job creation.

These types of impacts have been demonstrated in analyses of other transportation projects nationwide. However, it is important to recognize that economic development


impacts encompass only monetary flows, and do not necessarily capture all aspects of benefits that can affect the quality of life for area residents.

Nature of Phase I Improvements

The proposed Phase I improvements include certain measures to improve safety at high accident locations, turning lanes, extension of climbing lanes, certain alignment and shoulder improvements, and other “spot” measures along the corridor. The segment trip time savings are reduced by less than one minute in most cases. The improvements will produce some annual reduction in accident costs. No measurable vehicle operating cost reductions are anticipated to result from the improvements.

The proposed Phase I improvements will produce direct user (travel efficiency) benefits – namely reductions in accident costs and marginal travel time savings. The Phase I improvements will not produce significant economic development benefits that are measurable for businesses and the Route 12 corridor region.

Major long term corridor improvements that significantly reduce travel times, accidents, and vehicle operating costs would be required for economic development benefits to occur. These improvements would include measures to reduce if not eliminate congestion resulting from routing through core areas of cities and towns. Passing lanes, turning lanes, and limiting access would also be necessary.

In addition, the Phase I improvements would likely be undertaken with existing NYSDOT forces and are not expected to yield any significant short term construction spending impacts.

Travel Efficiency Evaluation In a travel efficiency assessment, highway user efficiency is measured in terms of vehicle operating cost (fuel, tires, vehicle maintenance, etc.), value of time saved, and accident reduction. All three measures of travel efficiency are measured in monetary terms.

• Travel Time Savings – The proposed Phase I Route 12 improvements will save car and truck travel time marginally. Values of travel time developed for the North County Transportation Study using the REMI model and HERS (national) were utilized as these values are expected to be compatible with Route 12.5

• Accident Cost Savings – Because certain high accident locations on Route 12 will be improved, the Phase I improvements can be expected to reduce accident risk measurably. Changes in accident rates were established by Barton & Loguidice for each segment of Route 12. Accident rates were established for three accident types (fatal, injury, property damage).

5 North Country Transportation Study: Final Technical Report. Prepared for the Development Authority of the North Country – New York. Prepared by Wilbur Smith Associates (February 2002).


• Vehicle Operating Cost Savings – No measurable vehicle operating costs are anticipated as the result of the Phase I improvements to Route 12.

Exhibit III-1 presents the inputs to the travel efficacy evaluation provided by Barton & Loguidice based on their engineering analysis.

Exhibit III-1 Inputs to Travel Efficiency Evaluation

Phase I Segment Improvement Cost* NB (sec) SB (sec) Fatal Injury PDO

1 5,975,000$ 37 64 0 14 192 7,955,000$ 46 46 0 5 223 410,000$ 10 10 N/A N/A N/A4 4,030,000$ 42 36 0 8 125 17,230,000$ 43 152 0 4 186 N/A N/A N/A N/A N/A N/A

* Includes Right of Way costs.

Travel Time Savings Annual Accident Reduction

Exhibit III-2 shows the splitting of AADT between truck and auto and the calculation of annual travel time savings for each.

Exhibit III-2 Calculation of Annual Travel Time Savings

Truck Truck Auto Avg. NB-SB Trip Segment AADT Percentage AADT AADT Time Savings (sec) Truck (hrs) Auto (hrs)

1* 6,600 10% 660 5,940 50.5 3,379.3 30,413.6 2 6,250 12% 750 5,500 46 3,497.9 25,651.4 3 15,000 6% 900 14,100 10 912.5 14,295.8 4 8,700 10% 870 7,830 39 3,440.1 30,961.1 5 3,600 10% 360 3,240 97.5 3,558.8 32,028.8 6 30,000 7% 2100 27,900 N/A N/A N/A

*Northern 13.8 mile section AADT used.

Annual Travel Time Savings

The values of travel time savings used are presented in Exhibit III-3. Note that an average value was used for auto travel time savings since no trip purpose data was available for this study.

Exhibit III-3 Value of Travel Time Savings – North Country Transportation Study

(2000 Dollars)

Travel Type Value of Time(Per Hour)

Per Commercial Truck Hour $26.54Per Tourist-Related Auto Hour $14.19Per Business-Related Auto Hour $14.05Per Non-Business Auto Hour $7.03Average Per Auto Hour $11.76


Annual travel time savings for trucks and autos, resulting from the Phase I improvements, are presented in Exhibit III-4.

Exhibit III-4 Annual Travel Time Savings (2000 Dollars)

Segment Truck Auto Total1 89,686$ 357,563$ 447,249$ 2 92,835$ 301,575$ 394,410$ 3 24,218$ 168,071$ 192,289$ 4 91,301$ 364,000$ 455,301$ 5 94,449$ 376,551$ 471,001$ 6 N/A N/A N/A

Total 392,489$ 1,567,760$ 1,960,249$

Value of Annual Travel Time Savings

The Phase I improvements to Route 12 are expected to generate $1.96 million annually in travel time savings for the corridor.

Standard highway accident costs used to calculate annual accident cost savings from the Phase I improvements are presented in Exhibit III-5.

Exhibit III-5 Standard Highway Accident Costs

Accident Type Cost*

Per Fatality $2,900,000Per Injury Accident (Non Serious) $20,000Per Property Damage Accident $1,800*Based upon values by the Highway Traffic Safety Administration (2000 dollars).

Anticipated annual accident cost savings resulting from the Phase I improvements are presented in Exhibit III-6.

Exhibit III-6 Annual Accident Savings

Segment Fatal Injury PDO Total1 N/A 280,000$ 34,200$ 314,200$ 2 N/A 100,000$ 39,600$ 139,600$ 3 N/A N/A N/A N/A4 N/A 160,000$ 21,600$ 181,600$ 5 N/A 80,000$ 32,400$ 112,400$ 6 N/A N/A N/A N/A

Total N/A 620,000$ 127,800$ 747,800$

Annual Accident Savings (2000 dollars)


The total annual travel efficacy benefits anticipated by the Phase I improvements to the Route 12 corridor are presented in Exhibit III-7.

Exhibit III-7 Annual Travel Efficiency Savings

(2000 Dollars - Thousands)

$-

$583.4

$761.4

$534.0

$192.3

$636.9

-

100

200

300

400

500

600

700

800

1 2 3 4 5 6

Segment

$ Th

ousa

nds

N/A

Total Annual Travel Efficiency Savings = $2.7 Million

The Route 12 corridor region can expect approximately a $2.7 million annual benefit based on travel time savings and reduced accident costs as the result of Phase I improvements to the corridor.

Transportation efficiency is a legitimate local, state, and national goal. If highway improvements create road user cost savings that, over time, exceed the cost of the improvements, then they should be implemented. Therefore, travel efficiency is relevant to the funding decision for the Federal Highway Administration, NYSDOT, and any other relevant jurisdiction. However, travel efficiency is only one of a number of factors to consider when making highway corridor investment decisions. Other factors include highway system continuity, the environment, economic development, and others.

Again, it is important to note that no economic development impacts are expected from the Phase I improvements. Major long term corridor improvements would be required for economic development benefits to occur, including measures to address congestion resulting from routing through core areas of cities and towns, along with passing lanes, turning lanes, and limited access.


Case Study: Economic Impact of Four Major Employers Transportation costs represent a significant cost element to firms and workers and will heavily influence the location and expansion decisions of firms across all industries. States and regions must continually assess its transportation infrastructure to ensure that it accommodates the needs of the changing economy. Inadequacies in transportation infrastructure, if left unaddressed, can be detrimental to economic development.

Without major corridor improvements the apparent socio-economic decline of the Route 12 corridor region could be exacerbated by the exit of key large employers from the region.

Firms located in the four county region consisting of Broome, Chenango, Madison and Oneida Counties depend on Route 12 for access to suppliers, final markets and workers. There is increased concern among businesses relying on Route 12 regarding its ability to meet their transportation needs. Failure to address these concerns could prove costly to the region and the state.

In an effort to relay the potential impacts of the failure to address issues related to the inadequacy of Route 12 on the regional economy, WSA conducted simulation analysis of potential business closures. The analysis consisted of estimating the impacts on employment and income in the region if some of its major employers were to shut down operations. Four firms were chosen for this exercise including Unison Industries, Inc., Norwich Aero Products, Inc., OSG Norwich Pharmaceuticals, Inc., and The Raymond Corporation. While none the firms involved in this exercise have stated their intentions to close down their operations in the region, they have expressed concern regarding the state of Route 12 and the resulting impact on their competitive position. A profile of each of the firms used in the analysis is provided below, facilitating a better understanding of the relative importance of these firms to the region’s economy as well as the firms’ reliance on Route 12.

Unison Industries, Inc.

Unison Industries, a wholly owned subsidiary of GE Engine Services, is a world leader in the design and manufacture of electrical components, sensors, and systems for aircraft, industrial, marine, military, and space uses. Major product lines include turbine and piston engine ignition systems, electrical power generation and control systems, electrical wiring harnesses and panel assemblies, sensors, switches, and bellows assemblies.

The Unison Industries facility in Norwich has 295 employees living in 39 different zip code areas. The Norwich zip code area represents the largest group with 42 percent of the employees. After this, 12 percent of the employees drive from North Norwich, 14 percent from south of Norwich, 22 percent from the east, and 10 percent drive from areas west of Norwich.

Customers of Unison Industries in Norwich are jet engine manufacturers, airframe manufacturers, and airlines worldwide. The firm has regular visits from customers


with a very high percentage flying in to Binghamton and sometimes Syracuse – either way they must travel on Route 12.

Customers, suppliers, and shippers which interact with Unison Industries must all use Route 12. The firm does business throughout the world, with all customers being non-local. This means that all products must go from the Unison plant to an Interstate highway or an airport. The firm has several local suppliers, however a significant portion of purchased materials come from outside the area.

The firm believes that Route 12, as it exists today, is inadequate for its economic development needs as it is becoming more and more inconvenient, slow, and unsafe. This impacts the firm not only in terms of conducting business, but also in terms of attracting and maintaining a skilled employee base.

Norwich Aero Products Inc.

Norwich Aero Products, Inc. is a member of the Weston Group of Aerospace Products and became a wholly owned subsidiary of the Roxboro Group, PLC of Cambridge England. Norwich Aero Products, Inc. opened its doors in 1983 in a rented 5,000 square foot building housing the entire company. Quality products, attention to detail, quick turn around time, and customer service have resulted in ongoing expansion. Today, Norwich Aero Products has a new 57,000 square foot manufacturing facility and 77 employees, with the capacity and capabilities to meet the challenges of its markets. The firm is ISO and MIL certified.

Products include custom and MIL standard temperature and speed sensors with applications including military and commercial aircraft, and aircraft engines. Similar to Unison Industries, Norwich Aero Products’ customers are worldwide and the firm is dependent on Route 12 for access to markets and suppliers. Unisom Industries is also concerned about Route 12 as it now exists being a limiting factor in economic development both of the firm and the region.

OSG Norwich Pharmaceuticals, Inc.

OSG Norwich Pharmaceuticals is a full-service manufacturer of Rx and over-the-counter pharmaceutical products. The firm brings more than 100 years of experience to the production, packaging and distribution of solid dose and other products – from clinical trials production support, through scale-up to commercial launch. OSG also provides a wide range of laboratory support services, such as stability evaluation, microbiological testing and analytical testing and method development.

The OSG Norwich manufacturing plant is a 375,000 square foot facility with state of the art equipment and features. The firm has 243 employees – all of whom use Route 12 to access the facility. Fifty-one percent of employees come from Norwich, three percent from North Norwich, seven percent from each of Oxford and Sherburne, twenty-three percent from elsewhere in Chenango County, and nine percent from outside Chenango County.


The firm depends on Route 12 for access to suppliers and markets and for providing safe and reliable transportation for its workforce. OSG Norwich Pharmaceuticals believes that improvements are needed to Route 12 to ease traffic congestion, improve safety, and boost economic development to the State’s central region and the four counties served.

The Raymond Corporation

The Raymond Corporation, located in Greene, is a leading North American provider of materials handling solutions, including fork trucks other pallet handling equipment, and is the largest employer in Chenango County with 1,100 employees. Raymond is developing its factory to produce 10,000 units annually – with no brick and mortar since the campus is constrained. The firm will accomplish this through continuous flow manufacturing. This process necessitates certainty of supply shipments and shipments of product to markets.

Critical non-Interstate routes, in order of priority are Route 12 from Binghamton (freight connecting I-81, I-88, and I-86 to Greene), Route 79 from Whitney Point (I-81 exit to Route 12 intersection to and from Syracuse and Canada), and Route 12 from points north (inbound Utica terminal traffic).

Deliveries to Raymond Corporation include steal deliveries (4-7 trucks per day), purchased parts deliveries (12-15 trucks per day), and additional step-van deliveries (14-18 trucks per day). Shipments include fork-truck shipments (2-4 trucks per day), inter-plant part shipments (2-4 trucks per day), and recycle trucks (1-3 trucks per day). Raymond has 62 suppliers located in Chenango County and makes purchases from these suppliers totaling $7.3 million annually.

The Raymond Corporation is concerned with inadequate conditions on Route 12 being a major barrier to economic development within the corridor region. From a business point of view, transporting materials and the personal aspect of commuting to and from work is becoming a negative experience due to increasing congestion. Seven hundred employees travel Route 12 daily and very few discuss their travel experiences positively. A key concern of the Corporation is attracting and maintaining a skilled workforce.

Approximately 180,000 to 240,000 pounds of raw materials and finished goods flow in and out of the Greene facility daily. With the physical constraints of the facility, The Raymond Corporation absolutely depends on the local and regional traffic patterns to accomplish its mission. Raymond competes in global markets, yet has been forced to function with antiquated local transportation infrastructure.

Impact Analysis It is important to note that the current analysis is greatly simplified since the purpose is for illustration of potential impacts and not actual events. However, even though simplified, the results represent reasonable “ballpark” estimates of potential losses should these firms decide to relocate. For the purpose of the simulation analysis, each of the participating firms was asked to submit data detailing their payroll and


non-payroll spending in the four county region for the most recent fiscal year. The form used to gather this information is included in the appendix. In addition to expenditure data, the firms also submitted employment data.

Using the data supplied by the firms and the RIMS II multipliers for the region, the direct, indirect and multiplier effects on employment and income in the region were estimated. The RIMS II multipliers measure the impact of payroll and non-payroll spending on the economy in terms of level of earnings created and number of jobs supported. The multipliers are region and industry specific, thus recognizing the fact that the impacts arising from a dollar spent on raw steel will be different than the impacts arising from a dollar spent on utilities.

Three levels of impacts were estimated- direct, indirect and multiplier. The direct effects are the number of jobs and payroll spending by the firm itself. Exhibit III-8 provides a summary of the direct employment and earnings effects of the four firms. The data indicate that the jobs generated by these four firms are high-paying, quality jobs with an average annual salary of $46,845. The loss of all of these firms would result in a loss of 1,352 direct jobs and more than $63.3 million in income, representing a substantial hit for the local economy. However, the direct losses represent only a portion of the total losses that the region would sustain. There would also be indirect and multiplier effects associated with the relocation of any of these firms.


Exhibit III-8 Direct Employment and Earnings Effect in the Four County Region

Direct Employment Direct Earnings Unison Industries 266 $9,450,000 Norwich Aero products 56 $2,409,500 OSG Norwich Pharmaceutical 235 $11,270,000

The Raymond Corporation 796 $40,205,000

TOTAL 1,352 $63,334,500

The direct effects reflect only the jobs and earnings accruing to residents in the four county region. The indirect employment and earnings effects arise from non-payroll spending by the four firms. For example, when The Raymond Corporation purchases raw steel from a local supplier, the money paid to that supplier becomes incomes to its employees, which likely reside in the region. Therefore, the higher the percentage of inputs a firm can purchase locally, the greater the indirect economic benefits of that firm. In total, the four firms surveyed for our analysis reported nearly $24.7 million in local non-payroll spending within the region for the last fiscal year. Therefore, the relocation or closure of these firms would result in $24.7 million less revenue for local vendors, giving rise to potential job losses at supplier firms.

The multiplier impacts arise as the direct and indirect income is spent and respent in the region. In other words, as the dollars spent by the four surveyed firms “ripple” through the economy, additional jobs and income are created. For example, as workers from Unison Industries spend their income on food and clothing at local retail stores, part of their spending is used to compensate the employees of those establishments. In turn, the workers of the retail businesses then spend their income at local establishments, creating another round of impacts. If any of these firms were to relocate, the direct and indirect dollars spent by these firms would go with them causing a “ripple” effect of the losses.

Exhibit III-9 summarizes the total estimated employment and earnings losses associated with the relocation of the surveyed firms. In total, the four firms support nearly 2,100 full-time jobs and generate nearly $87.3 million in income annually.


Exhibit III-9 Total Estimated Losses in Employment and Earnings Resulting from the

Relocation of Firms within the Route 12 Region

Unison Industries

Norwich Aero

Products

OSG Norwich

Pharmaceutical

The Raymond

Corporation

TOTAL Direct Impacts Employment 266 56 235 796 1,352 Earnings $9,450,000 $2,409,500 $11,270,000 $40,205,000 $63,334,500 Indirect/Multiplier Employment 105 19 139 456 720 Earnings $3,421,130 $592,125 $4,650,431 $15,292,151 $23,955,837 Total Impacts Employment 370 75 374 1,252 2,073 Earnings $12,871,130 $3,001,625 $15,920,431 $55,497,151 $87,290,337

In addition to the employment and income losses, local governments also stand to lose tax revenue if these firms chose to leave the region. Again, each of the firms pays property (or PILOTs), sales and use and business taxes. In the last fiscal year, the four firms participating in our analysis paid property and sales/use taxes to state and local governments totaling nearly $1.1 million. These payments represent some of the direct fiscal benefits of the firms. There are also indirect and multiplier fiscal benefits that arise as employees spend their income on sales-taxable goods and services and pay property taxes on their homes. Exhibit III-10 displays the estimated losses in sales and use tax revenue, based on reasonable assumptions, to the state and local governments as result of the relocation of the firms in our analysis.

Exhibit III-10 Potential Sales/Use Tax Losses Arising from the Relocation of Firms within the

Route 12 Region

Unison

Industries

Norwich Aero

Products

OSG Norwich

Pharmaceutical

The Raymond

Corporation

TOTAL Direct $16,000 $5,000 $120,000 $417,000 $558,000 Indirect/Multiplier $321,109 $74,885 $397,183 $1,384,542 $2,177,719 Total $337,109 $79,885 $517,183 $1,801,542 $2,735,719

The loss in state and local sales tax revenue arising from the relocation of these firms is estimated to be more than $2.7 million annually. This represents only a small portion of the potential fiscal loss to local governments in the region since sales tax revenue represent a relatively less important source of revenue to local governments. The potential loss in property tax revenue arising from relocating employees could be much more detrimental to local budgets.


For a region that is already experiencing declines in population, employment and overall economic activity, these potential losses are even more significant. Although from different industries, each of these firms is reliant on Route 12 whether it is for access to supplier or final demand markets or access to the labor market. Therefore, transportation costs associated with the use of Route 12 directly impacts the competitive position of not only the four firms used in our simulation, but all businesses located along the corridor. If transportation costs put the firms at a competitive disadvantage, there will be increasing pressure for firms to relocate.

Formatted: Bullets and Numbering


4.4 CONSIDERATIONS FOR PHASE II This section outlines the need to consider major long-term improvements to the Route 12 corridor in Phase II in order to promote economic development goals for the region.

Introduction Highway improvements and new highways can do more than merely improve travel efficiency; they can also create positive economic value for a region or a state by assisting in the economic development process. By reducing transportation costs in the region, the area could become more economically attractive and competitive, thereby attracting new industries and tourists into the area or encouraging existing industries to expand.

Major long-term corridor improvements are needed to achieve economic development goals for the region. These alternatives should be developed and evaluated in Phase II.

It is clear that major long-term investments that will significantly reduce travel times and improve access, mobility, safety, and system reliability are needed to achieve economic development goals for the Route 12 corridor region. The range of options will likely include four-lane and “super two-lane” options as well as bypass options to reduce bottlenecks through cities and towns.

Exhibit IV-1 Example of a “Super Two-Lane” Highway


These options will produce significant travel efficiencies which could reverse the decline of the Route 12 corridor region and potentially promote new business development and corresponding population and economic growth. The impacts of Phase II travel efficiencies could be estimated by the REMI model to produce sectoral estimates of economic output, earnings, and jobs as the result of major long-term Phase II improvements.

Definition of Economic Development Economic development is defined as "an increase in the prosperity and incomes of people and institutions.” Economic development of this nature in a given area occurs when the incomes and product generated in the area are caused to increase. Such increases occur in either of two ways:

1. More Resources – If output increases in the area, the increased output will require more resources (land, labor, materials, capital) which means more people are employed, more incomes are earned and more profits are made. If the improvement enables the attraction of additional business in the corridor (new firms, or expanded firms), then the highway has aided the economic development process, to the benefit of the corridor area.

2. Efficiency – Even if the highway does not help to create increased output, it can still help economic development by causing the area's output to be achieved at less total cost. Reduced transportation costs due to the highway improvement in this way yield increased prosperity and income.

Major improvements to the Route 12 corridor could do both: they could enable the attraction of “more resources” and could create greater “efficiency.” As a result, potential highway improvements will have very definite “economic development” role to play. The issue then becomes whether the magnitude of the economic development is sufficiently large to warrant the investment.

Economic Basis for a Feasible Highway Project Highways are essentially “tools” used in transporting goods and people from one place to another. Investments in highways contribute to economic development in that they lower transportation and/or logistics costs and/or improve people's accessibility to and/or perceptions of the corridor thereby causing them to want to settle/invest there, and/or divert traffic. Such changes may be realized in numerous ways, including improved safety, decreases in fuel and other vehicle operations costs, improved access to tourism places, improved awareness of the ability to travel to the corridor, and reductions in noise or air pollution. But in the final analysis, all of the direct benefits of a highway, and therefore the justification for investing in it, flow from using it for transportation.

Benefits from highway improvements may not only accrue to persons and businesses whose vehicles use the highway. Lower transportation costs may be passed on to consumers as lower prices for consumer goods, to workers as higher wages, or to


owners of businesses as higher net income. Persons may thus benefit from a highway investment without traveling on the roadway.

It is important to keep in mind that for any of these benefits to occur, the highway investment must either enable significant reductions in transportation costs or cause revised perceptions of the area. If the amount of these savings is small for each trip, if the number of vehicles using the highway is not sufficiently large, or if peoples' perceptions do not change dramatically, the investment will not produce benefits that exceed its cost. Highway investment must be based on reasonable estimates of traffic volumes they will service, the cost savings travelers will experience, and a realistic assessment of revised industrial/tourism/logistics/agriculture/ perceptions.

Investing in a highway improvement that produces benefits which are less than the associated costs of the improvement operates counter to economic development. The costs will be paid by users and other taxpayers in the form of higher taxes than otherwise would be the case, or would be paid in a lost opportunity (an alternative highway would not get improved). These higher taxes work against economic growth within the taxing jurisdiction because they reduce post tax return to businesses and households, and investment in the “wrong” highway project similarly retards economic growth. Therefore it is imperative that major investments in the Route 12 corridor be economically feasible; if not, it is economically counterproductive.

Four Economic Development Causes Major highway improvements to the Route 12 corridor would enhance travel conditions in the region through improved accessibility and reduced travel time and costs to the residents and businesses in the area. This in turn would result additional economic development benefits to the corridor region and the state’s economy. These additional impacts are categorized into four types:

• Competitive Position – Major improvements to the Route 12 corridor would reduce the cost of transportation. Reductions in transportation time and cost lead to reduced costs of production, which in turn lead to marginally reduced prices and/or increased profits, which can lead to increased production (expansion of existing firm production and/or attraction of new firms), which in turn generates economic impact value. Reductions in transportation time and cost will help ensure that the region will retain its major employers (such as those profiled in the previous section) into the future. Lower transportation costs also help the region compete against other areas of the country for economic development opportunities. These “competitive position” impacts are created by the increased travel efficiency of major highway improvements and would benefit both the Route 12 corridor region and the State of New York.

• Increased Tourism Activity – An efficient Route 12 highway would attract more traffic and visitors into the area. This increase in traffic and visitors would generate increased sales for businesses in the primary impact area, such as motels, restaurants, gas stations, tourist visitation places, retail stores, and others who cater to highway users. Increased visitor and tourism expenditures would be


net benefits to the corridor region. However, if many of the visitors were diverted from other areas within the State, then the impacts would not entirely be net economic gains for the State of New York.

• Non-Business Related Economic Activity – A more efficient Route 12 highway would also create benefits for non-business travelers. These non-business travelers would receive travel time savings and operating cost savings as well as reduced numbers of accidents. These non-business benefits are amenity improvements in the quality of life in the area, and therefore are treated as “direct” impacts.

• Act of Highway Construction/Increased Maintenance – The act of spending money in the Route 12 corridor region to improve the highway would be of immediate economic benefit to the corridor area. The construction impacts are temporary in nature, since they exist only during the construction period and terminate when the road construction is complete. However, the increased maintenance spent on snow removal, resurfacing the highway, etc., will continue to occur as the road is operated and used. While such construction expenditures may have value locally, they are valuable from the statewide perspective only if they cause a “net” increase in federal funds into New York State.

In Phase II, the direct monetary impacts of each of these four categories of impact would be input into a state-of-the-art economic simulation model to produce sectoral estimates of economic output, earnings, and jobs as the result of major Route 12 improvements. Some components of highway economic development benefits, such as willingness to pay for non-business time savings, are net increases in net economic value but do not generate jobs or economic activity. Therefore, these benefits would be added to the simulation model results. All of the impact categories would be net impacts within the Route 12 corridor region; and most, but not all, would be net impacts for the State of New York.


RECOMMENDATIONS


5 RECOMMENDATIONS Based on the proposed improvement locations, and the cost savings associated with the improvements, three priority groups were identified. The first priority group identifies the locations that have both travel time delay and have been designated as high accident locations. The second group contains areas that are high accident locations, and the third group lists locations that have travel time delays. Some of the improvement locations have been programmed by NYSDOT as future projects, and are denoted in the groupings with the program year in parenthesis. The greatest savings in accidents and travel time would be seen at locations that have both delay and accident history. These locations are: Location Planning Cost Segment

• NYS Route 79 (turning lanes) $ 370,000 1 • Brotzman Rd to River Rd (turning lanes) $ 410,000 1 (2006) • Canal St to NYS Route 220 (turning lanes) $ 450,000 2 • Village of Waterville (turning lanes) $ 510,000 5 (2005) • NYS Route 206 to NYS Route 41(turning lanes) $ 590,000 2 (2005) • Knapp Hill Rd to Willard Rd (alignment) $ 1,070,000 1 • Village of Sherburne (turning lanes $ 1,520,000 4 • Lower Ravine Rd to City of Norwich (alignment) $ 1,530,000 2 • US Rt 20 Sangerfield (intersection, widening) $ 8,140,000 5

The following locations for proposed improvements have been grouped as priority “2” due to the safety concerns at the high accident locations. Location Planning Cost Segment

• Oak Hill Rd (climbing lanes) $ 330,000 1 • Wilson Rd to North Norwich (alignment) $ 1,070,000 4 (2002) • Stockwell (alignment) $ 1,070,000 5 • Daytonville (alignment) $ 1,070,000 5 (2002) • Burmaster Rd (alignment) $ 1,070,000 5 • Clarey Rd (alignment) $ 1,070,000 5 • Brisben to Hill Rd (alignment) $ 1,210,000 2 • Laurel Rd to South Chenango St Ext (pavement)$ 1,500,000 1 • Foster Hill Rd (alignment) $ 1,520,000 1 • Bunt Rd to Hogsback Rd (alignment) $ 1,520,000 2

The following locations for proposed improvements have been grouped as priority “3” due to noted delay. Location Planning Cost Segment

• Brookfield (turning lane) $ 90,000 5 • Woods Corners/NYS Route 320 (turning lanes) $ 310,000 4 • Chenango County Route 4 (turning lanes) $ 320,000 2 • Chenango County Route 32B(turning lanes) $ 320,000 2 • Raymond Corporation Entrance (turning lanes) $ 370,000 1 • City of Norwich (intersection) $ 410,000 3 • Broome Co Hwy Dept Entrance (turning lanes) $ 405,0001


• Solid Waste Facility Entrance (turning lanes) $ 1,130,000 4 • NYS Route 41 to County Route 3A (shoulders) $ 2,010,000 2 • Paris Rd to NYS Route 5 (climbing lanes) $ 4,200,0005

Other locations identified in Phase 1 that have been improved are:

• US Route 11 to NYS Route 12A (2002) • NYS Route 12B to Madison County Line (2002) • Hamlet of Paris (2002)

NYS Route 5 to I-90


APPENDICES


Economic Impact Data Request In an attempt to better understand the importance of various firms to the regional economy, Wilbur Smith Associates (WSA) is conducting an analysis of the impacts arising from the potential loss of major employers. Your firm has been selected as being a significant economic force in the region whose continued presence is somewhat reliant on Route 12. In order to present the most realistic effects arising from your firm relocation outside the region, we need firm specific data. The following survey was prepared to provide the necessary input for the regional economic impact model. All individual data will be confidential and used solely as input into the model. Please provide the most accurate data possible for the company’s last fiscal year. Should you have any questions or concerns regarding the data request or the study in general, you may contact Randy Armour at (425) 488-3564. Firm Name: __________________________________________ Contact Person: __________________________________________ Employment Number of Full-time Employees: _____________________________ Number of Part-time Employees: _____________________________ Percentage of Employees living in Broome, Chenango, Madison or Oneida Counties: ___________________________________________________________ Annual Payroll ($): _______________________________ Financial Annual Revenue: ______________________________ Taxes Paid State: _____________________________________________

Local: Property: _____________________________________ Sales: ________________________________________ Business/Income: _______________________________ Non Payroll Spending Please complete the following table. If detail data by industry is not available, please indicate the dollar value of non-payroll expenditures at the most disaggregate level available. Please note that regional expenditures refer to all expenditures accruing to the four county region including Broome, Chenango, Madison and Oneida Counties.


Industry Total Expenditures

Regional Expenditures

Raw Materials Farm products, agriculture services, forestry and fishing

Mining Construction Food and kindred products and tobacco products

Textile mill products Apparel and other textile products

Paper and allied products Printing and publishing Chemicals and allied products and petroleum and coal products

Rubber, plastics and leather products

Lumber, wood, furniture and fixtures

Stone, glass and clay products Primary metal industries Fabricated metal products Industrial machinery and equipment

Electronic and other electric equipment

Motor vehicles and equipment Other transportation equipment Instruments and related products Miscellaneous manufacturing industries

Services Transportation, communication and public utilities

Wholesale trade Retail trade Finance, insurance and real estate services

Hotels and other lodgings Personal services Business services Eating and drinking establishments

Health services Miscellaneous services Total Non Payroll Expenditures

Documents

NNYYSS RROOUUTTEE 112 CCOORRRRIIDDOORR SSTTUUDDYY · NYS Route 12 Corridor Study – Phase I Economic Impact of Proposed Improvements -2- October, 2002 1 INTRODUCTION New York State