The Impact Of Access Management On Business Vitality Along Corridors Presented at the 38th Annual TRB Workshop on Transportation Law Seattle, Washington July 20, 1999

Presentation Outline zRecap previous business vitality research zProvide background on the Iowa Access Management Research and Awareness Project zSummarize research methods used zSummarize key research results zDiscuss conclusions

Previous Research Findings zThe majority of businesses do not experience sales losses as a result of access management changes and restrictions zAccess management projects are extremely effective in terms of improving safety and traffic flow zMost losses that do occur are temporary and are recovered from within one to two years zAutomobile-oriented businesses are the most vulnerable to changes and restrictions in access zProjects involving medians are the most controversial among business owners zMotorists overwhelmingly support access management projects

Iowa Project Background zFunded through the Iowa Highway Research Board, Iowa Department of Transportation and Federal Highway Administration zGuided by a Task Force made up of federal government, state government, local government, and private sector members zConducted by a multidisciplinary team from two universities

Project Goals zReview existing national research and current Iowa access management practices zLeverage previous research where possible zDocument Iowa-specific data on safety, operational, and business vitality impacts of access management projects using an in-depth case study approach zEducate key stakeholders using a variety of media by employing the Iowa results

Case Study Selection z50 possible case studies were nominated by transportation engineers and planners throughout Iowa zCriteria for selection included geographic coverage of Iowa and coverage of different types of access management issues and project types zFive business vitality case studies were selected by the Task Force to reflect a variety of communities and project types; four more case studies were analyzed in a second round zNine total business vitality case studies

Iowa Case Study Locations

Methodology And Data zRetail sales tax data from the Iowa Department of Revenue and Finance, R.L. Polk city directories, and other secondary data sources zOpinion surveys of business owners and managers, motorists/business customers, and public officials conducted by the School of Business at the University of Northern Iowa zSampling rates for business owners/managers were higher than those for other groups (motorists and public officials)

Original Case Study Communities * Based on 1990 Census or latest special census. ** Community is a suburb in a metropolitan area.

Second Round Case Study Communities * Based on 1990 Census or latest special census. ** Community is a suburb in a metropolitan area.

First Round Project Characteristics *AADT is the daily traffic volume estimated for an average day during the year.

Second Round Project Characteristics *AADT is the daily traffic volume estimated for an average day during the year.

First Round Community Retailing Characteristics * A pull factor at or near 1.0 indicates the community is primarily serving its own residents; a larger figure indicates it is also serving outsiders.

Second Round Community Retailing Characteristics * A pull factor at or near 1.0 indicates the community is primarily serving its own residents; a larger figure indicates it is also serving outsiders.

Five Year Comparative Business Survival Rates Note: Based on a five year period bracketing project completion. For corridors, business name changes or moves are counted as failures. First round projects only.

Case Study Corridor Sales Tax Revenue Growth

Same Businesses Sales After Project Completion Source: Opinion survey of business owners and managers.

Businesses Reporting A Loss Of Sales After Project Completion zNine of 162 businesses surveyed (6%) reported sales losses; these were: yTwo gasoline stations (both Des Moines--MAI) yTwo real estate offices (Ankeny--Median and Coralville--TWLTL) yA convenience store (Bettendorf--TWLTL) yA supermarket (Ankeny--Median) yA tanning salon (Clive--Median) yA music store (Coralville--TWLTL) yA fast food restaurant (Coralville--TWLTL) zFive of these were “auto-oriented” businesses zFive of these involved medians while four involved TWLTLs

Businesses Reporting Customer Complaints About Highway Access After Project Completion

Businesses Reporting Customer Access Complaints, By Type

Overall Support For Access Management Projects

Clive Notes zClive: the only community where business survival rate was far lower in the corridor than in the community at large (may reflect businesses moving elsewhere in the community or new competition nearby) zOnly one Clive business reported a sales decline, but half reported customer complaints about access zClive experienced a major retail boom during the project period; the 86th St. corridor was already built-out, so the boom occurred elsewhere in Clive zClive corridor was the third fastest growing; Clive community outpaced other communities by at least three to one

Des Moines and Ames Notes zDes Moines: much of project is old and it appears to have been too limited in scope and impact to gain much motorist notice or support zBusinesses near intersections that were restricted by medians on the Des Moines project appear to feel they were placed at a disadvantage versus other businesses that retained unrestricted access zDes Moines is a stable market but is losing retail market share to communities like Clive and West Des Moines zAmes: project is recent and there has been a retail “boom” along it in past year (Target, Staples, movie theatres, largest restaurant in region)

Key Conclusions zBusiness failure rates in study corridors were at or below the statewide average of 10% per year and generally were lower in corridors than their surrounding communities zAverage project corridor outpaced its surrounding community in terms of retail sales growth by about 20% zAbout 65 percent of businesses reported stable or increased sales after project completion and 75 percent reported no customer complaints about access to their business zSome individual businesses (6%) did report sales declines and customer complaints about access (28%) zAbout half of customer complaints about access come from “auto- oriented” businesses zAccess management projects are usually supported by a great majority of motorists; business support varies more

Acknowledgements zDr. Paul Chao, Dr. Pola Gupta, and graduate students, Department of Marketing, University of Northern Iowa zDr. Tom Sanchez, Department of Community and Regional Planning, Iowa State University zDr. Ken Stone and Scott Baumler, Economics Department, Iowa State University zKathy Harpole and Rich Jacobs, Iowa Department of Revenue and Finance zIowa Access Management Task Force zTom Welch and Ian MacGillivray, Engineering Division, Iowa Department of Transportation

Contact David J. Plazak Center for Transportation Research and Education, ISU Research Park, Ames, IA Telephone:(515) Fax:(515) URL: