3.0 Local Traffic, Business and Land Development Changes

This chapter relies on interviews of local officials to interpret observed changes in transportation, land development and business activity occurring at various communities within the study area. It focuses on changes over a period of time immediately before and after the opening of I-86 as the Southern Tier Expressway. It then contrasts them with the corresponding local changes observed within the comparison area over the same period.

3.1 Traffic Volumes and Travel Times

Travel Times. Construction of the Southern Tier Expressway from a 2-lane highway to a 4-lane freeway (in the study area) took place over the 1980's and 1990's. Completion of the project allowed for higher speeds, facilitated passing and eliminated delays associated with slow-moving vehicles, and also cut travel distances by directly crossing Chautauqua Lake instead of going around it. Staff of Southern Tier West estimate that total travel time for the 120-mile trip across the study area was reduced by an average of 20-30 minutes (depending on the time and season), once the project was completed at the end of 1999.

Traffic Volumes. Counts of average annual daily traffic (AADT) along the Southern Tier Expressway show a shift in activity immediately as sections of the new freeway were completed in 1998 and 1999. Exhibit 3-1 shows the traffic levels and count locations.

Exhibit 3-1. Observed Traffic Counts in the Study Area

Station	Location	1995	1998	2001	1995-2001Change	1995-2001 % Change
1	NY 430/Bemus Pt	8,543	11,823	* 13,941	+ 5,398	+ 63.2%
2	NY 394/Steamburg	*8,200	*8,188	8,906	+ 706	+ 8.6%
3	NY 16/Olean	10,413	8,488	7,292	- 3,121	- 30.0%
4	NY 275/Friendship	6,506	6,450	6,975	+ 469	+ 7.2%
5	Allegany County East	5,848	6,550	6,837	+ 989	+16.9%

Source: New York State Department of Transportation 2000 and 2001 Traffic Volume Reports.

* Indicates estimates.

Figure 3-1. Change in Traffic Volumes on Southern Tier Expressway, 1995 to 2001

For the comparison (North Country Central) area, we examined traffic changes for the US 11 corridor. Measurements along that corridor show continuing very small changes over the six year period (roughly +/- 300 vehicles) for two of the four stations, with a continuing pattern of localized traffic growth in the vicinity of Canton and at the eastern edge of Franklin County. (See Table 3-1.)

Altogether, these findings show that traffic volumes can vary greatly by location. It is important to note that while the siting of retail and lodging is often driven by traffic volumes, the siting of industrial establishments is most often driven by access times to suppliers and markets.

Table 3-1. Observed Traffic Counts in the Comparison Area

Station	Location	1995	1998	2001	1995-2001Change	1995-2001% Change
1	St. Lawrence/Jefferson Line	5,283	5,255	5,144	-139	-2.6%
2	Canton Village at Court St.	12,707	13,726	13,968	1,261	9.9%
3	St. Lawrence/Franklin Line	1,681	1,927	1,983	302	18.0%
4	Franklin/Clinton Line	4,082	4,339	4,873	791	19.4%

Source: New York State Department of Transportation 2000 and 2001 Traffic Volume Reports.

3.2 Local Business and Land Development in the Study Area

(as of Fall 2002)

The study team identified communities within the study area (Southern Tier West region) that are located within five miles of the I-86 corridor. During 2002, local and county-level officials serving that corridor were sent questionaires to gather information about business openings and closings, land development, property values and tourism changes occurring during the prior three years. Local observers were also asked to report on the perceived "causality" for changes - i.e., to what extent was the completion and designation of I-86 perceived to be responsible for the observed changes. This period of data collection, 2001-2002, corresponds to the period after the official completion and designation of I-86. With follow-up telephone calls, local responses were received covering nearly all of the communities along the corridor. The data collection instrument is shown in Appendix A.

The remainder of this section summarizes findings for individual communities located along I-86. First, it presents findings for those communities that showed evidence of business and land development impacts. Afterwards, it discusses communities that showed no evidence of business and land development impacts. This grouping is done to help isolate factors distinguishing the two groups.

Communities Reporting Initial Impacts of I-86 Completion

(as of Fall 2002)

Eight of the 13 communities examined in this study reported business and land development impacts following the completion of I-86 in the study area. These include all of the larger communities, along with a suburban community and a tourism/recreation area. Appendix B shows maps of the locations of existing and new businesses in a selected subset of those communities.

Allegany | Population 8,230 (town); 1,883 (village)

With a location just west of the City of Olean in Cattaraugus County, Allegany functions as both a light industrial center and a suburb of Olean. I-86, the Allegany River, and the Norfolk Southern (NS) Southern Tier rail line all pass through the town, supporting a mix of light industry, suburban residential developments, and retail and service establishments. NY 417 runs through the center of Allegany, connecting I-86 (exit 24) to St. Bonaventure University and the western edge of Olean. The Cattaraugus County Empire Zone includes parcels in the Town of Allegany.

Between 1999 and 2002, several new businesses opened in Allegany. This included a Frito Lay distribution center and a Home Depot (hardware superstore). In September 2002, Advanced Monolythic Ceramics, Inc., announced plans to expand its Allegany manufacturing facility, which is located in the Cattaraugus County "Empire Zone" (a state-designated economic development zone). The move will retain 86 jobs and create 100 new jobs over the next three years. The firm recently acquired the assets of Johanson Dielectrics of California and will be moving those operations to Allegany. Town officials believe that I-86 was one of several positive forces in attracting these new businesses.

After learning of the Interstate project, Allegany rewrote its zoning regulations and conducted a study of the NY 417 corridor in anticipation of new development. Visitor spending has remained unchanged, though a new Country Inn and Suites hotel has more recently been opened at St. Bonaventure (located between Allegany and Olean).

Cuba | Population 3,392 (town); 1,633 (village)

The Town and Village of Cuba are located on the western edge of Allegany County. NY 305 intersects with NY 446 in Cuba Village and also has an interchange with I-86 (exit 28), north of the village center. Cuba Lake, north of I-86, is surrounded by mostly year-round dwellings, but also attracts seasonal and weekend visitors to the area. The NS Southern Tier rail line passes through Cuba, and in the past connected to now-abandoned rail lines to Buffalo and Rochester via Cuba Junction.

Cuba had a new office building, two housing starts and two new businesses (including a drive-in restaurant) locate in the village between 1999 and 2002. Officials report that property values increased by more than 15 percent over that period, and they believe I-86 had a small positive effect on development and real estate prices. No community planning took place over the course of the study period.

Falconer | Population 2,540 (village)

The Village of Falconer is a small suburban community, just east of Jamestown. I-86 skirts the northern edge of Falconer, and exit 13 provides access to the village center and eastern Jamestown via Everett Street (NY 394). The Greater Jamestown Empire Zone (a state-designated economic development zone) includes parcels in the Village of Falconer.

Between 1999 and 2002, Falconer had a new Sealy Mattress factory locate in the community, and had three new housing starts and the relocation of a CVS drug store. According to local officials, developers expressed interest in several parcels in Falconer after I-86 was completed, including a representative of a national hotel chain. In March, 2002, Governor Pataki announced that Truck-Lite Company, Inc., a division of Penske Transportation Components, was expanding its Falconer manufacturing facility in the Jamestown Empire Zone, retaining 350 jobs and creating an additional 100 new jobs. Along with completion of the freeway during this period, the Norfolk Southern (NS) Railroad also reestablished freight service on its "southern tier rail line," which runs through the southern portion of the village.

Falconer formed a committee to study community planning in response to the I-86 completion. Property values have not yet changed, but the national hotel chain's interest in the area indicates potential for increased visitor activity in Falconer and Jamestown.

Exhibit 3-2. Industrial Park Off of I-86 in Cuba (photo, 2001)

Friendship | Population 1,927 (town); 1,176 (CDP)

Friendship, a town and an unincorporated Census Designated Place (CDP) in Central Allegany County, lies along one of the most remote and least-traveled portions of the I-86 corridor. NY 275, a local route, runs south from I-86 through Friendship, and the NS Southern Tier rail line connects Friendship to Hornell and Olean.

In 2001, Dresser-Rand announced a $20 million expansion of its production facility in the Friendship Empire Zone, which is technically within the limits of Wellsville (adjacent to Friendship). The facility and expansion will create 200 new jobs. No new development within the corporate boundaries of Friendship occurred between 1999 and 2002, but the Friendship Empire Zone is in the process of planning and developing a new business incubator and technical assistance center near the interchange of I-86 and NY 275. Another 500 acres of open land in the Empire Zone has been reserved for economic development.

Jamestown | Population 31,730 (city)

The largest city in the Southern Tier West is Jamestown in southeastern Chautauqua County, at the eastern tip of Chautauqua Lake. Jamestown's history is closely tied with the development of what was originally the Erie Railroad's Southern Tier line, formerly part of a direct route from New York to Chicago. Today, the reopened NS Southern Tier line carries a small fraction of the freight formerly transported by the Erie Railroad, but Jamestown continues to function as the commercial and industrial center of southwestern New York. Jamestown Airport is the only airport in the four-county area with commercial service, and I-86 now connects the city to Pennsylvania and the rest of the Southern Tier.

The Greater Jamestown Empire Zone, which includes parcels in Jamestown and neighboring Falconer, was established in 1994 to help aid economic development in the area. However, new business locations in Jamestown over the 1999-2002 period were concentrated on serving local residents and travelers: a new Rite Aid drug store, a Tim Hortons restaurant, and a Holiday Inn Express. Two additional hotels have been proposed near the Lucille Ball Museum complex in the CBD. Overall, then, it appears that Jamestown's economic base has showed signs of recovery, though impacts directly attributable to I-86 have (to date) been concentrated on traffic and visitor-serving activities.

Exhibit 3-3. Comfort Inn off of I-86 in Jamestown (photo, 2001)

Mina / Findley Lake | Population 1,176 (town)

The Village of Findley Lake lies within the Town of Mina, located on the New York-Pennsylvania border 20 miles east of Erie. Prior to the completion of a bridge over Chautauqua Lake and the final portion of the Southern Tier Expressway in the 1990's, Mina was connected to Jamestown and other Southern Tier communities by a series of two-lane, rural roads. When I-86 was completed, traffic volumes passing through Mina grew substantially, with a 57 percent increase in traffic at the state line between 1998 and 2000.

Most development that has taken place in Mina and the community of Findley Lake has been residential in nature. A new Harley Davidson motorcycle dealership also opened up. Officials report that I-86 was a major factor in residential development that occurred between 1999 and 2002, and estimate that property values rose by about 10 percent over that period. At the same time, tourism has increased in the area, with an increase in tourism-related traffic in Findley Lake.

Recognizing the potential for further residential and commercial development in response to the completion of I-86, the town began the process of community planning in 1999. An updated comprehensive land use and development plan was adopted in 2000 and revised zoning laws were passed in 2001.

Olean | Population 15,347 (city); 2,029 (town)

Olean is the second-largest city in the study area behind Jamestown and the largest city in Cattaraugus County. The city is located in southwestern Cattaraugus County at the intersection of I-86 with NY 16 (which leads to Buffalo) and NY 417 (which runs east from Olean along the extreme southern portion of the Southern Tier). The Cattaraugus Empire Zone includes parcels in Olean and neighboring Allegany, and includes a 156-acre industrial park on former railroad right of way. St. Bonaventure University, located between the city of Olean and the village of Allegany, is home to 2,800 undergraduate and graduate students.

Despite losing businesses and population during the 1990s, Olean was successful in attracting new businesses after the completion of I-86 in 1999. In October, 2000, Dresser-Rand moved its headquarters from Houston, Texas to Olean. At the time Dresser-Rand was already one of the Southern Tier's largest employers, with more than 2,500 employees in three facilities producing industrial equipment for the oil and gas, chemical, and petrochemical industries. A truck body manufacturer, a concrete mixer manufacturer and several distribution centers, along with a Home Depot and two national chain restaurants also opened in Olean between 1999 and 2002.

After the completion of I-86, Olean adopted and implemented the recommendations of a previously completed community planning study. Developers began to express interest in parcels near I-86 interchanges, and officials reported that property values citywide increased by more than 5 percent after I-86 was designated. Tourism traffic and tourism spending also increased during the study period. Officials feel that I-86 was a major cause of new development, increased property values, and increased tourism activity.

Salamanca | Population 6,097 (city); 544 (town)

The City of Salamanca in Cattaraugus County is the only incorporated municipality in New York State located entirely within an Indian reservation (Seneca Nation). Salamanca lies on the Allegany River north of I-86 and Allegany State Park. US 219, a north-south highway, also runs through Salamanca. US 219 begins at I-90 near Buffalo, runs south as a four-lane freeway for 28 miles through Erie County, and then continues as a two-lane road for the remaining distance to Salamanca. South of the city, US 219 joins I-86 and the Southern Tier Expressway for several miles, then turns south along a short stretch of four-lane highway before entering west central Pennsylvania. After the completion of I-86, Cattaraugus County's highest transportation priority became expanding US 219 to four lanes from I-86 north to the current end of the freeway section south of Buffalo.

The Interstate designation brought several new developments to Salamanca, including the opening of a manufacturing plant for Gator Grip Mfg. (home tool products) and the relocation of a small manufacturer from Ellicottville (10 miles north of Salamanca) to a location closer to the Interstate. During this same period, the Southern Tier West's "Center for Regional Excellence" (a business incubator) opened a Rite-Aid drug store relocated within the city, and several other retail and service-based stores opened.

Attracting visitors, the Seneca Nation opened its gaming and entertainment center in Salamanca. A Holiday Inn Express motel opened near the Interstate to serve area visitors and pass-through traffic.

Property values did not increase immediately after the opening of the Interstate. However, local officials believe I-86 had a major influence in the development activity that occurred between 1999 and 2002. Salamanca also completed an update to its local land use plan in response to the completion of I-86.

Other Communities Reporting Impacts

Most but not all of the communities responded to the questionaire. Additional cases of known new development following the Interstate Highway completion include new truck stops in Seneca Junction and Steamburg, a proposed factory outlet mall in Steamburg, a Home Depot hardware store and a proposed factory outlet mall in Lakewood. In addition, a large NASCAR track was built along I-86 just a couple of miles across the state line in Pennsylvania.

Communities Reporting No Initial Impacts of I-86 Completion

(as of Fall 2002)

Five communities reported in the Fall of 2002 that, to date, they had no initial business or land development impacts following the completion of I-86 in the study area. They are all small communities, with a population of roughly 5,000 or less.

Alfred | Population 5,140 (town); 3,954 (village)

The Village of Alfred is located approximately 5 miles south of I-86 in eastern Allegany County. The village is home to Alfred University, a liberal arts school with 2400 students, and Alfred State College, part of the technology college sector of the State University of New York (SUNY) system.

Officials do not attribute the little development that occurred in Alfred between 1999 and 2002 to the completion of I-86. The village is relatively isolated, and the most direct connection to I-86, along NY 21, is not an ideal route for heavy trucks. The village itself has not done any community planning as a result of the Interstate's completion, but Allegany County performed a feasibility study of a possible new route connecting Alfred to I-86. Property values in Alfred remained unchanged between 1999 and 2002.

Angelica | Population 1,411 (town); 903 (village)

Angelica, the oldest town in Allegany County, is located near the center of the county east of the Genesee River. The section of I-86 passing through Angelica carries the lowest traffic volumes of any section of the Southern Tier Expressway. In an average day, fewer than 6,000 vehicles pass through Angelica on I-86, compared to 14,000 vehicles per day that traverse the Chautauqua Lake Bridge. Peacock Hill Road connects I-86 (exit 31) to the center of the Village of Angelica.

Most of Angelica's residential and commercial development is concentrated north of I-86 around Main Street and Park Circle at the center of the village. According to local officials, no new development occurred after I-86 was completed in 1999, and no developers expressed interest in the community. Property values remained unchanged. There was also no reported increase in traffic and spending related to tourism.

Ellery / Bemus Point | Population 4,579 (town)

The Southern Tier Expressway terminated in the Town of Ellery, on the east side of Chautauqua Lake, until a bridge over the lake and an extension of the expressway to I-90 near Erie opened to traffic in the 1980s. Ellery is both a suburb of nearby Jamestown and a resort and retirement area, given its proximity to Chautauqua Lake. The Village of Bemus Point is part of the Town of Ellery.

Aside from several cellular phone towers that were constructed to accommodate projected demand for wireless telephone service following the completion of I-86, little development occurred in Ellery between 1999 and 2002. Town officials do not attribute any new development to the completion of I-86. No community planning took place after 1999, and property values and tourism spending remained unchanged.

Exhibit 3-4. Old Chautauqua Lake Ferry at Bemus Point in foreground and New I-86 bridge in background (photo, 2001)

Poland | Population 2,467 (town)

The Town of Poland is on the border of Chautauqua and Cattaraugus Counties, roughly 10 miles east of Jamestown, the Southern Tier's largest city. US 62 intersects I-86 at Exit 14 and connects Poland to Buffalo in the north and to Pennsylvania's Allegheny River Valley in the south.

According to local officials, no significant development occurred in Poland between 1999 and 2002 and property values remained unchanged. There was no growth in tourism traffic after the completion of I-86.

Randolph | Population 2,681 (town); 1,316 (village)

Approximately halfway between the cities of Jamestown and Salamanca in western Cattaraugus County, the Town and Village of Randolph are located in a relatively isolated portion of the I-86 corridor. I-86 skirts the center of the Village of Randolph, and Main Street has an interchange with the Interstate at Exit 16. The NS Southern Tier rail line also runs through the village center.

Randolph attracted twelve new businesses between 1999 and 2002, but over the same period five others went out of business and one left town. The town has formed an economic development corporation in an attempt to attract new businesses to the area, but the only new development prospect is a senior housing project. Property values rose between five and ten percent between 1999 and 2002. A new visitor information kiosk was also opened at the I-86 interchange, although there has not yet been any documented increase in visitor activity in the area.

3.3 Local Business and Land Development in the Comparison Area

(as of Fall 2002)

The study team also identified communities within the comparison area (North Country Central region) along the US 11 corridor. During 2002, government county and local representatives serving that corridor were also interviewed with basically the same questions as those asked of study area communities, though the questions were modified to reflect the fact that no highway improvement occurred during the study period.

The largest community along this comparison area corridor is Potsdam, which is home to two universities and 9,425 residents. Other sizeable communities include Canton, the county seat of St. Lawrence County; Gouverneur; Malone, the county seat of Franklin County; and Philadelphia. Ogdensburg and Massena, located off the US 11 corridor along the St. Lawrence River in St. Lawrence County, each have more than 10,000 residents.

Interviews showed that much less development occurred along US 11 than along I-86. For that reason, we summarize the overall findings for all of these communities. In fact, the biggest economic development news in the region since 1998 has been the closure of Wolverine Worldwide shoe manufacturing facility in Malone, which cost the North Country 600 jobs. In addition, another apparel manufacturer closed a facility near Malone and moved away from US 11 to a newer facility in northwestern Franklin County. The new facility is closer to the international crossing between Rooseveltown, New York, and Cornwall, Ontario, and it is also closer to the Macdonald-Cartier Freeway running between Toronto and Montreal. (Since the facility made the decision to relocate before September 11, 2001, border crossing delays were not a factor at the time.) One facility's closing and another's relocation closer to a freeway across the Canadian border are indicative of the poor state of the transportation system in the North County.

Although Malone lost two high-profile, medium-size manufacturers between 1998 and 2002, the town had positive employment growth over that period. The village lies at the crossroads of US 11 and a direct North-South route between Montreal and the Adirondack state park. West of the Village of Malone along US 11, restaurants and small stores have opened to serve the local population and pass-through traffic.

Elsewhere in the North Country, an industrial park has been developed near Chateaugay by the Franklin County Industrial Development Agency. As a result of small, light industrial developments near Chateaugay, truck traffic has increased on the section of US 11 eastward from Franklin County to I-87. A medium-sized Slic Network Solutions call center opened near Potsdam, but no other major development occurred in the village between 1998 and 2002. Various convenience stores, gas stations, and other retail establishments have opened throughout the US 11 corridor, but these types of firms usually offer a small number of relatively low-paying jobs.

3.4 Findings on Localized Development Impacts of I-86 Completion

(as of Fall 2002)

Based on the surveys of county and local officials in the Southern Tier West region, there appears to be evidence of additional land use planning, increases in property values and additional business investment occurring in some but not all of the communities along the corridor. Many but not all of these changes are locally perceived to be due to the completion and designation of I-86. These impacts can be classified as follows:

Land Use Controls - development and implementation of new land use controls in Allegany, Falconer, Mina, Olean and Salamanca;Product Manufacturing - new manufacturing plants sited in Allegany, Falconer, Friendship, Olean and Salamanca;Trucking and Distribution Centers-new warehouse/distribution centers in Allegany and Olean; new truck stops at Seneca and Steamburg;Lodging - new hotels/motels located in Allegany, Jamestown and Salamanca, and proposed for Falconer;Retail -new retail stores in Allegany, Cuba, Falconer, Jamestown, Mina, Olean and Salamanca; proposed for Steamburg;Tourism - increased visitor spending in Olean, new visitor attraction (Indian reservation gaming) opened in Salamanca, new visitor information kiosk in Randolph.Housing - new housing in Cuba, Falconer and MinaProperty Values - increased property values in Cuba, Mina and Olean.

These results lead to several key findings. It appears that product manufacturing and distribution, as well as visitor lodging and regional-scale retail stores, were the most visible business changes that local officials attributed to the designation and opening of I-86. The opening and expansion of manufacturing facilities, in particular, is most clearly a source of regional employment growth.

Information is not yet available to assess the extent to which the retail development is increasing the net flow of dollars coming into (or remaining within) the region's economy. Significant investment is also occurring in new lodging and visitor services, although information is not yet available to measure increases in the number of visitors and amount of visitor spending. However, much of that impact will depend on the success of marketing efforts. Towards that end, a new I-86 visitor travel guide is being distributed by the NY State Dept. of Transportation at its highway rest areas, and by regional tourism bureaus and chambers of commerce. (See picture below.)

Exhibit 3-5. Cover of I-86 Travel Guide (Fall/Winter Edition, 2002)

It is also notable that much of the initial success in attracting new manufacturing activity has occurred in the small to medium size communities. The region's largest city reported relatively modest highway related business impacts, and some of the region's smallest villages reported essentially no impact to date. However, it is still early and additional impacts may yet be emerging. It is therefore important to note that increased interest in land development has itself spurred five separate communities to pursue new land use plans or controls.