APPENDIX E ILLINOIS 336: CHALLENGES AND OPPORTUNITIES FOR ECONOMIC DEVELOPMENT IN CARTHAGE, ILLINOIS

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1 APPENDIX E ILLINOIS 336: CHALLENGES AND OPPORTUNITIES FOR ECONOMIC DEVELOPMENT IN

2 Executive Summary The Illinois 336 road project will upgrade an existing highway alignment to four lanes with an interchange located at the eastern edge of Carthage. This project will bring many new opportunities and challenges for economic development. This study summarizes many of the factors that will influence the community s ability to capitalize on this opportunity. The most important findings include: 1. Carthage residents have a very positive attitude about the proposed project. In a 2003 survey over 95% said it will be good for Carthage if the project brings more visitors to the community and 76% agreed with the statement The highway will have a positive impact on Carthage. Residents also support significant City involvement with over 75% supporting annexation and zoning of the interchange area. 2. Most measures of economic well being indicate the area is struggling like much of rural Illinois. Population is projected to decline and incomes are stagnant. An increasing number of workers are commuting out of the county and unemployment rates have remained above those for neighboring counties. With only one major industry, Carthage is vulnerable to the severe impacts that occur as businesses often relocate or downsize. 3. The experiences of other rural areas that gained access to improved highways indicates that there are often significant time lags between completion of a project and notable economic impacts. This is especially true in more remote rural areas like Western Illinois. However, several IL_336 project characteristics like the close proximity to Carthage of the interchange will provide a strategic advantage in the long run especially because of lower infrastructure costs. One of the often unforeseen benefits is the travel time savings that brings Carthage closer to other economic centers, most notably Quincy. This has the effect of expanding the local labor market, increasing employment opportunities for Carthage residents, and decreasing businessto-business transportation costs. 4. To take advantage of the opportunities IL-336 will provide it is important to do the following: a. Annex property at the interchange. b. Exercise land use control over the interchange and surrounding property to guide development. c. Provide infrastructure including sewer and water to the development sites including the property owned by the Carthage Industrial Development Corporation. d. Develop and implement a marketing plan for the interchange site. Page 1

3 Table of Contents Background...3 The Challenge...3 Population Trends...4 Income Characteristics...9 Employment and Commuting...10 What to Expect: Experiences of Other Communities...14 A Framework for Understanding Economic Benefits from Transportation Improvements...17 Public Attitudes Concerning Illinois What Carthage Needs to Do to Take Advantage of IL List of Tables and Figures Figure 1: Carthage and Surrounding Area Population Change by Place...5 Table 1: Population Trends...6 Figure 2: Proportion of the Population in Young Adult and Elderly Age Groups in Figure 3: Carthage Population Pyramid Figure 4: Per Capita Income Trends 1969 to Table 2: Average Household Income 1980 to Table 3: Full and Part-Time Employment in the Western Illinois Region...11 Table 4: Labor Force Participation Rates...11 Figure 5: Unemployment Rates 1999 to Table 5: County Level Place of Work for Workers 16 and Over in Table 6: Carthage, Illinois Place of Work for Workers 16 and Over 1990 and...14 Figure 6: Carthage Area Traffic Counts...18 Page 2

4 Background The Illinois 336 highway expansion will become a reality in Carthage by The completion of the Carthage section of the road will open a new corridor connecting the community to Quincy and I-72 to the south. Eventually the project will provide a limited access four-lane highway to Macomb. Beyond that there are notable efforts to extend the highway to Peoria but funding for construction has not been authorized for this section of the project. The City of Carthage responded to the expansion of IL-336 by forming a committee to examine how the project would impact the community. The committee met several times during 2002 and 2003 to discuss community planning and land use issues in Carthage. A survey of residents was completed in 2003 that asked several questions concerning public attitudes about Illinois 336 and Carthage. The following pages detail findings from this effort to anticipate the effect the road project will have on the community and to recommend future action. The report is presented in four parts. First, a review of published literature on the impacts of highway expansion in other rural areas is summarized. This information provides several insights into how other communities took advantage of opportunities that enhanced transportation access offers. Second, a framework for understanding how the highway will affect economic development opportunity is introduced with specific interpretations for Carthage. Third, the responses from community residents to the survey are summarized. Finally, a set of recommendations for action are presented. The Challenge In many respects Carthage is teetering on the edge of economic stagnation. Population growth has been negligible over the last decade. The two percent growth lags well behind the Illinois (8.6%) and US rates (13.2%). The community Page 3

5 is aging rapidly; there are more persons over 60 than between 24 and 44 years of age. Consequently the labor force is shrinking. Personal income is growing but at a pace well below state and national averages. Retail sales, when adjusted for inflation, have actually declined in recent years. With only one large manufacturing plant supporting the economic base the community finds itself vulnerable to downsizing or relocation. Against this backdrop the Illinois 336 project brings new optimism and possibilities for economic development. In order to understand the potential impact of the project and to anticipate ways the community can take advantage of this opportunity it is important to review and understand basic demographic and socioeconomic characteristics of Carthage and the surrounding area. Extensive studies of the economic impact of highway expansion illustrate that the potential impact is directly linked to local demographic and economic conditions. The highway, and in this case the interchange at Carthage, will reflect the current economic development potential of the area. Population Trends Carthage, Hancock County and the surrounding region is losing its most important resource people. The region is defined as the counties that share a border with Hancock County and includes Adams, McDonough, Hancock, Henderson, and Schuyler Counties in Illinois; Lee County, Iowa; and Lewis and Clark Counties in Missouri. Beginning in 1980 Carthage and the surrounding area experienced slow but consistent erosion of the population base. Between 1980 and 2000 population decreased from 210,953 to 192,675 in the region, an 8.5% loss. All of the counties were net losers and 62 of the 71 incorporated places also lost population. Among the biggest losers were the largest cities; Quincy, Macomb, Keokuk, and Fort Madison all experienced losses greater than the regional total. Between 1990 and 2000 there was some moderate growth in small towns especially in Adams County. However most of these communities Page 4

6 remain near 1980 population levels. Figure 1 illustrates the region and identifies communities that lost (or gained) population between 1990 and Figure 1: Carthage and Surrounding Area Population Change by Place The downward trend, which started in 1980, is expected to continue for the region, Hancock County, and Carthage. Current estimates and projections from Applied Geographic Solutions indicate continued population decline in the region. By 2008 the region is projected to lose another 6,000 residents. Carthage is projected to follow this trend reversing the small gains achieved over the last decade. Longer term projections to the year 2013 are for population declines similar to recent historical trends. Between 2003 and 2013 the regional Page 5

7 population is projected to decrease by 6.5%. Table 1 illustrates the population trends from 1980 to 2013 for the region, Hancock County, and Carthage. Table 1: Population Trends Demographic Trends Region Hancock Carthage County Population 1980 Population 210,531 23,805 2, Population 194,764 21,373 2, Population 192,675 20,121 2, Estimate 188,691 19,552 2, Projection 182,732 18,708 2, Projection 176,434 17,816 2,350 Region includes Adams, McDonough, Hancock, Henderson, and Schuyler Counties in Illinois; Lee County, Iowa; and Lewis and Clark Counties Missouri. Source: 1980, 1990, and 2000 Census, Bureau of the Census; 2003, 2008, and 2013 estimates and projections, Applied Geographic Solutions, Inc. Several factors are influencing population decline in the region. These factors include changing age profiles leading to lower birth rates and higher mortality rates, evolving consumer preferences for higher levels of personal services, and the availability of employment options and opportunities for upward mobility. When combined these forces are contributing to measurable shifts in population not only in Western Illinois but across the country. Over time these changes begin to reinforce each other leading to persistent declines in population. One needs to look no further than the once prosperous communities that dotted the rural landscape of the Great Plains to find evidence of how these trends often culminate in community decline. Carthage and the surrounding region has a significantly older age profile than the nation. According to the 2000 Census 22% of the population was over 65 years of age. Hancock County (18%) and the surrounding region (17%) had somewhat lower proportions but remained will above the Illinois and National rates of 12%. At the same time the proportion of young adults aged 18 to 34 years remained well below state and national figures. Carthage with 18.3% in this category is 6% Page 6

8 below the State and National rate of 24.3%. This age group is a particularly important indicator of future population trends because they have the highest fertility rates. They also have an inordinately large economic impact as they assemble families that need an abundance of products of services. Figure 2: Proportion of the Population in Young Adult and Elderly Age Groups in % 25.0% 22.8% 24.3% 21.4% 20.0% 18.3% 17.9% 18.3% 16.8% 15.0% 12.1% 10.0% 5.0% 0.0% Years Over 65 Years Carthage Hancock County Region Illinois Region includes Adams, McDonough, Hancock, Henderson, and Schuyler Counties in Illinois; Lee County, Iowa; and Lewis and Clark Counties Missouri. Source: 2000 Census, Bureau of the Census Other changes in the age structure of the population are also noteworthy. The population pyramid for Carthage, a graph that displays age group totals for male and female population, will help to highlight how the age structure is changing. The population pyramid for 2000 is displayed as Figure 3. The pyramid for 2000 is labeled to emphasize important changes that occurred between 1990 and In addition to the relatively smaller numbers of young adults there was also a decline in the number of persons 65 and older. Between 1990 and 2000 all rural Illinois counties that experienced population loss experienced declines in Page 7

9 the number of persons 65 and older. The large bar at the top for females 85 and older is extraordinary even for a rural community and probably indicates the relatively importance of services and housing that help keep older adults in the community. The hump in the middle of the pyramid indicates the large proportion of the population that are Baby Boomers. An important issue for most rural areas will be whether or not these Boomers remain in the community as the retire starting in about If they choose to migrate from Carthage and other rural places the rate of population loss will accelerate even more rapidly than expected. Finally, the relatively lower birth rates and lack of in-migrants with children will probably result in declines in school enrollment. Between 2000 and 2008 the number of persons aged 17 years and under is projected to decline by 18% in Carthage and Hancock County. Figure 3: Carthage Population Pyramid Male Fewer 65+ than 1990 Female Baby Boomers Will they stay or will they go? Small Proportion of Young Adults Brain Drain Declining School Age Population Source: 2000 Census, Bureau of the Census Page 8

10 Income Characteristics Incomes for residents have increased steadily but at a rate slower than the Illinois average. This divergence in income, while typical of rural places, is an issue of great concern. Income data published by the Bureau of Economic Analysis in the US Department of Commerce provides a long time series of county data for comparison of trends. Chart shows per capita income trends for Hancock County and Illinois. Since 1970 the income gap has widened. In the 1972 to 1975 period per capita incomes were nearly 90% of the state average, in 2001 it was 74%. To understand the magnitude of the gap, consider that each percentage point represents $4.8 million in income. If Hancock County had per capita income equal to 90% of the state average, like it did in 1974, there would be an additional $77.8 million dollars injected into the local economy. Figure 4: Per Capita Income Trends 1969 to 2001 $35,000 $30,000 $25,000 Note the widening gap between Hancock County and Illinois per capita income. $20,000 $15,000 Illinois $10,000 $5,000 $ Hancock County Source: Regional Economic Information System, Bureau of Economic Analysis, US Department of Commerce. Page 9

11 The Bureau of the Census reports household and family income as a part of the decennial Census. Average household incomes for Illinois, the Region, Hancock, and Carthage are described in Table 2. Since 1980 average household incomes have increased but lost ground when compared to Illinois. In 1980 the average household income was 80.3% of the Illinois average by 2000 it dropped to 69.0%. Short-term projections to 2008 indicate only slight changes when compared to Illinois. Table 2: Average Household Income 1980 to 2008 Illinois Region % of Illinois Hancock % of Illinois Carthage % of Illinois 1980 $22,570 $17, % $17, % $18, % 1990 $47,495 $32, % $32, % $33, % 2000 $61,544 $42, % $43, % $42, % 2008 $73,822 $50, % $50, % $50, % Region includes Adams, McDonough, Hancock, Henderson, and Schuyler Counties in Illinois; Lee County, Iowa; and Lewis and Clark Counties Missouri. Source: 1980, 1990, and 2000 Census, Bureau of the Census; 2003, 2008 projections, Applied Geographic Solutions, Inc. Employment and Commuting While incomes and population change remained relatively stagnant since 1990 the employment picture has been more positive. The entire region including Hancock County experienced growth in employment throughout the 1990 s tracking the vigorous economic growth of the Illinois and national economies. To highlight how robust the growth was it helps to examine the 1980 to 1990 period as a point of comparison. Table 3 shows total full and part-time employment for 1980, 1990, and 2000 with a calculation of the percent change during the 1980 to 1990 and the 1990 to 2000 decades. Economic restructuring during the 1980 s lead to a net loss of about 1,700 jobs in the region. Most of those losses were in the manufacturing and farm sectors which lost 21% and 22% of their employment respectively. Beginning in 1988 there were eleven years of employment growth in the region. Total full and part Page 10

12 time employment increased 20.9% in Hancock County and 15.2% in the Region. This compares favorably with the Illinois increase of 15.4% but fell short of the national rate of 20.1%. Table 3: Full and Part-Time Employment in the Western Illinois Region % Change Adams, IL 37,597 37,660 43, % 15.9% Hancock, IL 8,674 8,558 10, % 20.9% Henderson, IL 2,333 2,129 2, % 32.0% McDonough, IL 17,310 18,617 21, % 17.5% Schuyler, IL 3,139 2,988 3, % 14.1% Lee, IA 24,303 21,895 23, % 7.7% Clark, MO 2,812 2,747 3, % 21.6% Lewis, MO 4,299 4,146 4, % 15.0% Region Total 100,467 98, , % 15.2% Region includes Adams, McDonough, Hancock, Henderson, and Schuyler Counties in Illinois; Lee County, Iowa; and Lewis and Clark Counties Missouri. Source: Regional Economic Information System, Bureau of Economic Analysis The growth in employment occurred at a time when the total population decreased. Between 1990 and 2000 the region lost about 2,000 residents but gained nearly 15,000 jobs. To accommodate the demand for labor many persons previously not in the labor force went to work. Labor force participation rates are used to describe the proportion of all persons 16 years of age and over that are working or looking for work. Table 4 illustrates the growth that occurred in the labor force by sex. At a regional level females were most important in supplying new workers with nearly twice as many women entering the labor force as men. Table 4: Labor Force Participation Rates Male Female Total Male Female Total Carthage 67.7% 53.1% 59.5% 70.8% 57.9% 63.4% Hancock, IL 74.5% 52.7% 62.9% 75.2% 58.8% 66.6% Region 69.0% 53.7% 61.0% 70.3% 59.0% 64.5% Source: Census 2000, Bureau of the Census, US Department of Commerce. Page 11

13 Since 2000 employment losses have been the rule with unemployment rates creeping upwards in all counties. Figure 5 displays graphically the unemployment trends since 1999 for western Illinois counties and Lee County Iowa. The regional unemployment rate and county rates for all except Lee County, Iowa and Hancock County have remained below Illinois which posted a 6.8% rate in February The US rate was 5.7% during the same month. The higher rates in Lee and Hancock counties illustrates the close relationship between the labor markets in those counties. Figure 5: Unemployment Rates 1999 to Feb ADAMS HANCOCK HENDERSON McDONOUGH SCHUYLER LEE REGION Source: Illinois Department of Employment Security and Iowa Workforce Development. A large proportion of the labor force in this region commutes across county boundaries for employment (see Table 5). In 2000 the Census reported that 24% of Hancock County workers were employed in Lee County, Iowa which Page 12

14 explains how the dramatically higher unemployment rates in Lee County impact the rates in Hancock County. The Census Bureau estimated that 2,300 Hancock County residents worked in Lee County in Across the region nearly 22% of all workers commuted across county boundaries to a job in Adams County, home to Quincy, the largest city in the region, has the lowest proportion of workers commuting out of county to work. At the same time an estimated 5,000 workers commute into Adams County for work making it by far the largest source of employment in the region. Commuting increased in all counties between 1990 and 2000 with the most notable increases occurring in the smaller more rural counties. Table 5: County Level Place of Work for Workers 16 and Over in 2000 Total Workers Worked in county of residence Worked outside county of residence Carthage city, IL 1, % % Adams County, IL 32,936 30, % 2, % Hancock County, IL 9,864 5, % 4, % Henderson County, IL 3,944 1, % 2, % McDonough County, IL 15,531 13, % 1, % Schuyler County, IL 3,560 1, % 1, % Lee County, IA 17,099 13, % 3, % Clark County, MO 3,388 1, % 1, % Lewis County, MO 4,996 2, % 2, % Region Total 91,318 71, % 19, % Source: Census 2000, Bureau of the Census, US Department of Commerce. The relationship between commuting patterns and regional economic development often escapes the scrutiny of political leadership at every level of government. Workers are more likely to cross political boundaries today than at any time in history. This should provide an impetus for regional economic development programs based on labor markets rather than parochial interests. When jobs are created in Quincy, Macomb, or Keokuk, Carthage will benefit. Transportation system improvements like Illinois 336 are more likely to impact labor market dynamics than new business development in the short-run. As they Page 13

15 shorten the travel time and improve safety roads like Illinois 336 make it easier for commuters to live in one place and work in another. Table 6 displays commuting data for Carthage from the 1990 and 2000 Census. The proportion of Carthage residents commuting out of Hancock County to employment increased dramatically between 1990 and 2000 from 15.1% to 25.2% of all workers. The proportion working at jobs in Carthage remained relatively stable at 65.5% which indicates the economic base of the community remained stable during this period. Table 6: Carthage, Illinois Place of Work for Workers 16 and Over 1990 and % 2000 % Total 1,204 1,299 Worked in Hancock 1, % % Worked outside Hancock % % Worked in Carthage % % Worked outside Carthage % % Source: Census 2000, Bureau of the Census, US Department of Commerce. What to Expect: Experiences of Other Communities There is a rich and diverse literature describing the impacts of highway expansion on rural areas across the United States. A review of these studies offers insight into the factors that contribute to community economic development from expansion of transportation systems. The good news is access to divided limited access highways, especially interstate highways, have had positive economic benefits for many rural areas. However, this broad generalization must be tempered by several qualifications that are particularly relevant to Carthage. The conventional wisdom, build it and they will come, is not always true in the case of highway construction and rural economic development. There are several mitigating factors that must be clearly understood in order to forge a strategy that fits improved highway access into the local development plans. Page 14

16 Rural places near metropolitan cities experience the most dramatic impacts of new highway construction and improvement. This form of growth, often called sprawl by land use planners, is one of the few obvious examples of transportation activated growth. In Illinois this type of growth is easy to identify in growth patterns surrounding Chicago and St. Louis. Bedroom communities often blossom along interstate corridors and interchanges become hot locations for an array of businesses from retail and service to warehousing and manufacturing. The closer a rural place is to a growing metro area the more likely it is to benefit from enhanced highway access. For Carthage this may be good news because Illinois 336 does more to shorten the distance between Carthage and Quincy than any other destination. Quincy is the dominant retail and manufacturing center in Western Illinois. Even though it may seem counter intuitive, all of the evidence indicates that the shorter the travel time between Carthage and Quincy the better. The time lag between road construction and economic development may be lengthy. This is especially true in remote rural regions that lack commercial and manufacturing centers or tourist attractions. Even in a relatively populous Illinois there are dozens of communities scattered along interstate and four lane highways that have experienced no measurable economic impacts from their unique locations. It is important to note that many of these communities were ill prepared to take advantage of development opportunities arising from highway access. One of the most common failures was to ignore the need for critical infrastructure at strategic access points like interchanges. These systems can become prohibitively expensive to install after a highway is built. Highways are a necessary but not sufficient condition for generating economic development. Dozens of studies of factors affecting manufacturing location decisions conclude that transportation is only one of many factors and is rarely the most important. Today, labor force characteristics, availability of buildings and sites, utility costs, and a host of other factors are likely to be ahead Page 15

17 of highway access. Sound economic development planning prior to construction is necessary to anticipate the economic development needs at highway interchanges. Currently Carthage has no sites listed in the Illinois Department of Commerce and Economic Opportunity site and building database. The acquisition of property in the vicinity of the interchange by the Carthage Industrial Development Corporation will give the City a highly visible site with exceptional transportation access. A marketing plan for this site and the community needs to be developed and implemented. New highways can entail costs for rural communities. Investment in new infrastructure, especially sewer and water systems, may be necessary to capitalize on the economic development potential at the IL-336 interchange. The benefits of this investment may be deferred for many years. Maintenance costs on city streets may increase if additional traffic is generated by the highway. Economic activity may be redistributed as some businesses in town may have to compete with new businesses at the highway resulting in business closures. Both property and sales tax losses are a possibility if the City does not annex land at the interchange. Formation of a tax increment financing district should be explored as an option for financing infrastructure. Travel time savings and increased safety are important impacts of highway improvement projects like IL-336. The cost of traveling decreases on improved highways because drivers of automobiles and trucks travel at higher speeds with greater safety. Travel time benefits and vehicle operation savings are higher for trucks than passenger vehicles. Accident and fatality rates are both significantly lower on divided four lane highways. Reduced travel time as a result of IL-336 has several important implications for Carthage. Western Illinois dominant business and educational centers, Quincy and Macomb, will both be closer when the highway is complete. Most research indicates this will have Page 16

18 positive long-term benefits for the City. It has the effect of expanding the labor market, offers Carthage residents shorter commutes to out of town jobs, and increases the efficiency of business-to-business travel. Unlike construction of a new business at the interchange this is one of the unseen benefits of highway improvement. Development at new highway interchanges is often complex involving many factors. One of the most widely cited studies of rural highway interchanges found that the key factors influencing commercial growth were the size of the nearby community, distance to the highway and especially to interchanges (affecting the community s ability to provide sewer and water to the exit), closeness to major metropolitan regions, and cross-street traffic. They concluded that economic development along interstates or other major rural expressways is primarily an extension of the local community s business structure rather than the volume of tourists or Interstate traffic. Another major study found existence of previous development, regional location of the interchange, distance to nearest interchange, traffic volume, distance to nearest city (closer is better), and topography (level terrain is easier to build on) as the most important determinants of development over time. A Framework for Understanding Economic Benefits from Transportation Improvements In general there are four types of markets that can be served or expanded due to a new or improved highway link: labor markets, sales markets, business-tobusiness markets, and pass-by traffic. Labor markets are made more available in two ways. First local residents have better access to employment. People have more job opportunities even if those opportunities exist in other places. Second, the labor market area for local businesses is expanded as travel time is reduced, a larger number of people can reach the community in a shorter period of time. The potential market for local businesses is expanded in the same way. Business-to-business linkages are increased when a highway link reduces the Page 17

19 amount of time it takes for suppliers to deliver to producers. Increases in pass-by traffic can create new business opportunities as the traveling public demand services like lodging, food service, and fuel and auto services. Acting as a gateway to larger tourist attractions can make this a particularly important opportunity. Thinking strategically about these market access opportunities will offer some insight into the type of development that is most likely to occur at the Illinois 336 interchange. From an economic development planning perspective it is essential to anticipate the market forces that will shape opportunity from transportation improvements. 1. Reach residential customer markets. Highway projects may create economic opportunities for businesses by expanding the customer market that they can reach within a reasonable travel time. (Conversely, this may open up expanded and new shopping opportunities for consumers to shop elsewhere.) This may lead existing businesses to expand or new businesses to start up or move to the area. In general, this type of access improvement makes the area more attractive as a location for businesses whose market base is the surrounding residential population. It is unlikely that 336 will have a significant impact on customer Figure 6: Carthage Area Traffic Counts markets in Carthage in the short term. Most of the retail businesses in Carthage are serving a local market, Page 18

20 people living within a ten minute drive of the downtown. Out-shopping to Hamilton and Keokuk will probably not be affected because they will continue to be the next closest destinations. Although drive time to Quincy will be shorter it is still distant enough that most consumers are unlikely to change long established shopping patterns. In the long term there may be demand for retail development at or near the interchange. There are several factors that will influence this option. Traffic counts would probably have to increase significantly. The most recent data indicates about 3,100 vehicles a day on 136 east of the 94 intersection and 2,400 vehicles on 94 south of 136. As a point of comparison the count increases to 7,200 at the intersection of Madison and Buchanan. 2. Reach labor markets. Highway projects may create economic opportunities for new or growing businesses by effectively increasing the local labor supply available within a reasonable commuting time. Many businesses that are considering expanding or deciding whether to establish a presence in a new location value access to a good pool of labor. All else equal, businesses view a larger labor force as increasing their chances of finding qualified workers. Local residents benefit from increased access to jobs just as businesses benefit from a larger available work force. This is perhaps one of the most significant benefits for Carthage economic development. Given the extraordinary importance of labor market characteristics in business location decisions anything that expands the pool of labor will have a positive influence on marketing efforts. Because labor markets are often measured by evaluating commuting time the 336 project will bring both Macomb and Quincy into reasonable commuting distance. The highway will also help to preserve (and possibly expand) the population base in the community by increasing access to employment in other locations along the IL-336 corridor. Page 19

21 Highway projects open new opportunity for bedroom community development as linkages with employment opportunities in other places improve. 3. Reach business supplier markets. Highway projects may create economic opportunities by making it easier for suppliers and producers to reach one another. If it becomes easier for businesses to get supplies and distribute their product, existing businesses may be able to expand and new businesses may locate in the area. All businesses that depend on trucks, which are nearly all businesses today, will enjoy some immediate benefit from the completion of the highway. Longer term there may be real opportunity to attract industries and businesses that require direct access to a divided highway. Two conditions must be met to take advantage of the opportunity IL-336 presents. First, there must be developable land available. The recent purchase of land by the Carthage Economic Development Corporation satisfies this requirement. Second, infrastructure must be accessible at the site. This requirement requires further study and engineering analysis. Delaying decisions on infrastructure expansion until after the highway is constructed could radically increase the costs of land development. This is especially true for property on the east/southeast side of the highway. 4. Reach recreation and tourism markets. Highway projects can also increase the reach of tourism markets. A highway project can open up tourism markets in two ways. First, pass-by traffic on a new highway segment may be attracted to tourist sites and facilities by signs or attractions on or near the highway corridor. Second, the transportation project may make it possible for people to travel to the local area for day trips, whereas before the project it may have taken too long to get to the area. Recent developments in Hancock County may spur the opportunity for tourist related development in Carthage. The events surrounding the opening of the Page 20

22 Nauvoo Illinois Temple in Nauvoo brought tens of thousands of visitors to Carthage to tour the old Carthage Jail. The GilRan development will diversify the tourism base and undoubtedly increase visitation to the area. Carthage is positioned to be the gateway for travelers that are arriving from the east side of the county. Tourism related businesses are among the most common and successful developments at highway interchanges in rural places. Lodging, restaurants, fuel, and travelers services are typical examples of the types of establishments that prefer high visibility and easy access at or near interchanges. Public Attitudes Concerning Illinois 336 A survey of all Carthage households was completed in Residents completing the survey tended to have a very positive opinion about the impact of IL-336 on the community. A significant majority support aggressive action on the part of the city to promote and manage development of the intersection with the highway. The responses to questions concerning IL-336 are summarized below % agreed or strongly agreed with the statement It will be good for Carthage if IL-336 brings more people to town as tourists and shoppers while only 24.2% believe traffic problems will result from the development. 76.1% said the highway will have a positive impact on the community. 2. Over 80% of respondents agreed or strongly agreed with the statements The city should aggressively try to develop new business at the IL-336 intersection and Carthage needs to annex land around the highway. In a separate question 78.5% answered yes to the question Should Carthage expand the city limits and zoning to encourage and manage development in the IL-336 area?. A smaller proportion (61.5%) believe the IL-336 intersection should become the focal point for new development in Carthage. 3. On the down side, nearly half indicated that they will be more likely to shop out of town because of the highway. Page 21

23 Table 7: Summary of Responses to Questions Concerned with IL-336 It will be good for Carthage if IL-336 brings more people to town as tourists and shoppers The city should aggressively try to develop new business at the IL-336 intersection Strongly Agree or Agree Strongly Disagree or Disagree % Not Responding 95.2% 4.8% 7.3% 80.9% 19.1% 9.9% Carthage needs to annex land around the highway 80.9% 19.1% 15.6% The highway will have a positive impact on Carthage 76.1% 23.9% 18.1% I will be more likely to shop out of town 48.9% 51.1% 17.6% The highway will increase traffic problems in Carthage 24.2% 75.8% 15.6% Source: 2003 survey of all Carthage households, 558 completed surveys. What Carthage Needs to Do to Take Advantage of IL Annex property associated with the new interchange development. To capture the long-term benefits from development at the interchange the property surrounding the interchange, and perhaps other contiguous land, should be annexed into the City. 2. Land use controls should be implemented at the interchange. If the area is annexed it should be zoned. If the area is not annexed Carthage should exercise its right under Illinois statutes to zone land within one and one-half miles of the municipal boundary. A number of options exist for zoning the land. One that has worked in other locations is an Interchange Overlay District that allows flexibility to accommodate many alternative commercial developments. Residential development in the vicinity of the interchange should be discouraged. 3. Municipal infrastructure, including sewer and water, should be extended to both sides of the interchange. Without infrastructure the land surrounding the Page 22

24 interchange is far less attractive as a development site. An engineering firm should be consulted on how to complete this task. Creating a tax increment financing district should be explored as an option for financing these expansions. 4. A marketing plan should be created and implemented for the development ready property at the interchange. The marketing plan should address critical issues like alternative marketing channels, target industries, a site profile, and community profile information. At a minimum site information should be entered in the Illinois Department of Commerce and Economic opportunity site and building database as soon as possible. Page 23