Executive Summary

The southwestern corner of New York State has long suffered from high unemployment and low income, and a lack of good regional highway access. To address the region's economic needs and accessibility limitations, New York State authorized development of the Southern Tier Expressway, and the Appalachian Regional Commission designated it as Corridor "T" of the Appalachian Development Highway System. The route was initially served by a 2-lane road, but the western portion (185 miles) was upgraded to a four lane, limited access expressway over the 1980's and 1990's. The upgrade was completed in 1999 at which time the highway was formally designated as Interstate 86.

This study examines the nature of initial economic development impacts associated with completion of the four lane expressway and designation of the new Interstate highway. It applies a methodology developed in the Federal Highway Administration report: Using Empirical Information to Measure the Economic Impact of Highway Investments, Vol. 2: Guidelines for Data Collection and Analysis. This report is a joint effort of the Southern Tier West Regional Planning and Development Board and contractors funded by FHWA-- Economic Development Research Group, Inc. and Cambridge Systematics, Inc. This study only shows preliminary, initial impacts. It will take up to ten years of economic data to observe the extent of any net long-term increases in employment and income that are attributable to completion of this highway project.

Notwithstanding the previous sentence, key findings were that:

• The project has spurred interest in land development, which led five communities to develop and adopt land use regulations. At least three communities also noted increases in property values attributed to the new interstate highway.
• The project has spurred construction of new buildings and opening of new businesses. New manufacturing plants came to locate in five communities, and new warehouse distribution centers came to locate in two others.
• Traffic levels have risen in the western part of the highway (the part closest to the intersection with I-90), and new investment has been made in facilities and attractions for new visitors. These include new truck stops in two communities, new motels in three communities (and proposed for others), a new visitor information kiosk in one community and a new Indian casino also opening up. .
• Measurement of overall countywide employment and income trends indicate that the study area's economy is performing better than that of a comparable area located elsewhere in the state. However, more years of post-completion observation are needed to make definitive conclusions regarding project changes on the study area economy.
• Manufacturing was the most notable sector of the study area's economy that clearly grew in total employment at a rate faster than was occurring elsewhere. This is consistent with local reports that a series of new manufacturing and distribution facilities have moved into the region at the time of completion of the interstate highway.