Adirondack Rail Corridor Economic Impact Study Commissioned By: Commissioned By: Prepared By: Prepared By:
What we are going to tell you g g y • Outline the study focus & methodology. • Determine the construction costs for each scenario. • Explain the purpose of an economic impact study. • Determine the economic impact for train riders, bikers, & snowmobilers. • S Summarize the study findings. i th t d fi di January 24, 2011 2
The objective of this Study was to determine the construction costs & projected economic impact for three scenarios p j p Scenario 1 • Repair and rebuild the rail line for • Repair and rebuild the rail line for Rails Without Trails improved passenger transport from Lake Placid to Tupper Lake. Scenario 2A • Permanent conversion of the rail Permanent corridor to multi ‐ use recreational trail. Conversion to Trail Conversion to Trail • Temporary conversion of the rail corridor Scenario 2B to a multi use recreational trail with a to a multi ‐ use recreational trail, with a Temporary use agreement being established Conversion to Trail between DOT and the trail organization. January 24, 2011 3
The Study excluded a rails with trails scenario because widening portions of the corridor would cause significant environmental impacts & increased costs Th The corridor transects areas with rare plants & animals, id t t ith l t & i l significant wild communities, & classified water bodies. The corridor contains causeways & bridges that cross lakes, streams, g , , & wetland areas. To accommodate a rail with trail scenario, the rail bed will have to be widened by about 20 ft; resulting in a major environmental impact on the many sections with rock cuts & embankments. January 24, 2011 4
Construction Cost Estimates C t ti C t E ti t January 24, 2011 5
Construction Cost Estimates Estimated construction costs were based on a site assessment, existing documentation, & costs from recent rail/trail projects g , p j Our estimated construction cost methodology included: • Base information: � DOT Unit Management Plan & update. � Adirondack Scenic Railroad (ASR) reports on operation & condition of rail corridor. � � Our experience in multi use trail design & rail upgrade projects Our experience in multi ‐ use trail design & rail upgrade projects. • On site investigation of entire corridor performed. • Stakeholders interviewed. Sample track condition on Sample track condition on Example of a multi ‐ use line from Saranac Lake to line from Lake Placid to recreational trail Tupper Lake (FRA Class I) Saranac Lake (FRA Class II) January 24, 2011 6
Construction Cost Estimates The rail costs are built on the requirement to upgrade to FRA* Class III (60mph) to reduce round-trip travel time ( p ) p Scenario 1: Repair & Upgrade Rail ITEM DESCRIPTION TOTAL COST 1 1 Track Reconstruction Track Reconstruction $ $ 5,090,000 5,090,000 2 Bridge & Sub Structure Repairs $ 260,000 3 Crossing Improvements $ 30,000 4 Crossing Repairs $ 50,000 5 5 Automated Crossing Protection (6 crossings) Automated Crossing Protection (6 crossings) $ $ 1,350,000 1 350 000 6 Culvert Repairs/Replacement $ 400,000 7 Fencing (New/Replacement) $ 10,000 8 Station Rehabilitation/Repairs $ 490,000 Subtotal: $ 7,680,000 Contingency (15%): $ 1,152,000 Subtotal: $ 8,832,000 Engineering Legal Const Admin (20%) Engineering, Legal, Const. Admin. (20%) $ $ 1,766,400 1 766 400 TOTAL: $ 10,598,400 ROUNDED TOTAL: $ 10,600,000 * FRA = Federal Railroad Administration January 24, 2011 7
Construction Cost Estimates The cost to permanently convert the rail corridor to a trail is reduced by $2.7 m in salvage credit for rails and ties y $ g Scenario 2A: Abandon Rail ‐ Permanent Conversion to Trail ITEM DESCRIPTION TOTAL COST 1 Track Removal $ 2,100,000 2 2 Salvage Credit for Ties Salvage Credit for Ties $ (1,300,000) $ (1,300,000) 3 Salvage Credit for Rails $ (1,400,000) 4 Regrading Ballast for Trailbed $ 1,200,000 5 Bridge & Sub Structure Repairs / Modifications for Trail $ 260,000 6 Culvert Repairs / Replacements $ 400,000 7 7 Trail Installation Trail Installation $ $ 6 200 000 6,200,000 8 Timber Guiderail on Embankments $ 900,000 9 Road Crossing Treatment $ 300,000 10 Erosion & Sediment Control $ 1,100,000 11 Trail Facilities/Amenities $ 200,000 12 12 A Access Control (Bollards and Gates at Road Crossings) C t l (B ll d d G t t R d C i ) $ $ 300 000 300,000 13 Legal Fees & Permitting $ 350,000 Subtotal: $ 10,610,000 Contingency (15%): $ 1,591,500 Subtotal: $ 12,201,500 Engineering, Legal, Const. Admin. (20%) $ 2,440,300 TOTAL: $ 14,641,800 ROUNDED TOTAL: $ 14,600,000 January 24, 2011 8
Construction Cost Estimates The cost to temporarily convert the rail corridor to a trail p provides no salvage credit & includes the cost to store the track g Scenario 2B: Temporary Conversion to Trail ITEM DESCRIPTION TOTAL COST 1 Track Removal $ 2,100,000 2 Track Storage (10 Years) $ 500,000 3 Regrading Ballast for Trailbed $ 1,200,000 4 Bridge & Sub Structure Repairs / Modifications for Trail $ 260,000 5 Culvert Repairs / Replacements $ 400,000 6 6 Trail Installation Trail Installation $ $ 6,200,000 6 200 000 7 Timber Guiderail on Embankments $ 900,000 8 Road Crossing Treatment $ 300,000 9 Erosion & Sediment Control $ 1,100,000 10 Trail Facilities/Amenities $ 200,000 11 Access Control (Bollards and Gates at Roads) l ( ll d d d ) $ $ 300,000 12 Legal Fees and Permitting $ 150,000 Subtotal: $ 13,610,000 Contingency (15%): $ 2,041,500 Subtotal: $ 15,651,500 Engineering, Legal, Const. Admin. (20%) $ 3,130,300 TOTAL: $ 18,781,800 ROUNDED TOTAL: $ 18,800,000 January 24, 2011 9
Construction Cost Estimates All scenarios assume professional engineering & construction; g grants & volunteer involvement could substantially lower costs y Construction Costs Per Total Total Mile Scenario 1 Scenario 1 $10,600,000 $320,000 Rails Without Trails Scenario 2A Scenario 2A $14,600,000 $440,000 Permanent Conversion to Trail Scenario 2B $18,800,000 $550,000 Temporary Conversion to Trail January 24, 2011 10
E Economic Impact Estimates i I t E ti t January 24, 2011 11
Economic Impact Estimates The economic impact study determined the changes in spending, jobs & earnings due to a “change in final demand” (i.e. new visitor dollars) g g ( ) The steps in our economic impact study methodology: • Determine study area: Franklin & Essex Counties • Define “change in final demand”: Net new visitor spending � � Identify visitor types: Identify visitor types: Include: Train riders bikers & snowmobilers Include: Train riders, bikers, & snowmobilers Exclude: Runners, hikers, & x ‐ country skiers* � Estimate “net new” spending by visitor type � Project # of net new visitors by visitor type � Input new spending into EMSI Model (Economic Modeling Specialists, Inc.) � Analyze the results * There are many existing trails throughout the study area for these activities & it is unlikely that an additional trail would attract net new runners, hikers, & x ‐ country skiers to the Study Area. January 24, 2011 12
Economic Impact Estimates Estimates of spending by visitor type are based on existing studies Visitor spending categories: • Retail • Recreation i • Food • Lodging • Transportation p Spending by visitor type: • Train Riders & Bikers (2006 Study by Northern NY Travel & Tourism Research Center SUNY Travel & Tourism Research Center ‐ SUNY Potsdam) � Spend more on retail & recreation � Average $125 per day • Snowmobilers (Average from NH, MI, WY, WI, MT, ID studies) � Spend more on food, lodging, & transportation transportation � Average $110 per day January 24, 2011 13
Economic Impact Estimates Rail: Net new train rider projections are based on five similar rail excursion case studies and ASR’s existing ridership g p Estimate of 8,400 net new annual train riders based on: • Existing ASR ridership of 14,000 • 75% increase in ridership from extended line, supported by experience of 5 case studies • 80% non ‐ local ridership based on ASR experience 80% non local ridership based on ASR experience Spending by 8,400 Train Riders Spending (1/2 Day) 1 Spending Categories Total Spending p g ( y) Food $13.91 $116,808 Retail $14.27 $119,835 Recreation $16.53 $138,867 Lodging g g $11.92 $ $100,155 $ , Transportation $5.61 $47,104 Total $62.23 $522,769 1. On average, it is assumed visitors w ill expend 1/2 a day's spending in the Study Area as a result of riding the train. g January 24, 2011 14
Economic Impact Estimates Rail: The EMSI model translates direct net new spending into total spending, jobs & earnings p g, j g Direct Impacts: Job creation & earnings as a direct result of net new visitor spending Indirect / Induced Impacts: Additional spending, job creation & earnings that occur in Franklin and Essex Counties as dollars cycle thru the economy cycle thru the economy. Rail Scenario: Annual Economic Impact of Net New Spending Impact Category Impact Category Direct Direct Indirect / Induced Indirect / Induced Total Total Spending $522,769 $235,246 $758,014 Jobs 1 10 3 13 Earnings g $201,974 $ , $105,026 $ , $307,000 $ , 1. Represents Full-Time Equivalent (FTE) jobs. 1 FTE job is equal to 2,080 hours w orked in one year. January 24, 2011 15
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