Chapin Slideshow Revised 1.13.11

Economic Impact of Mountain Bicycling-Trail Building

Scott Chapin, RJF Agencies

Background

Economics Major-University Wisconsin Eau ClairePresident-Sawyer County Development

CorporationPast President-Northland Area Builders AssociationDirector American Birkebeiner Ski Foundation

Background

• Avid Cyclist, Runner, Skier• Active with local IMBA Club-CAMBA• Insurance Broker-Specializing in

Bicycle and Ski Industry Risks• Work with 150+ Bike Clubs in U.S.

Mountain Biking-Trail Development

• Attracts Tourists• Tourists Could become Seasonal

or Permanent Residents• Attracts Commerce• Enhances Communities

Mountain Bike Trail Development• Land Managers, Municipalities, Chambers

of Commerce Question Economic Impact Data

• Having Economic Data Helps with Financial and Political Support of Trail Projects

• Helps With Volunteer Base

Economic Data

• Analysis is for Sawyer County• Sawyer County Located in NW

Wisconsin• Sawyer County Population

16,196 (2000)• 2 ½ Hours from Minneapolis• Median Per Capita Income

$24,288 (2002)

Economic Data• Tourist Area, Historically Fishing/Hunting• Service Sector Economy• Known for Events: American Birkebeiner,

Lumberjack World Championships,Chequamegon Fat Tire Festival

Economic Data• Many Second Homeowners in Area• Chequamegon Area Mountain Bike

Association Developed around 1990• Started Signing Existing Double-

Track/Roads• Focus on Singletrack for past 8 Years

Types of Economic Impact

• Direct-Initial Purchase• Indirect-Cross Industry• Induced-Cycled Again in Community

Economic Statistics (Bicycling) National

• $133 Billion Annual Contribution to the U.S. Economy

• Supports 1.1 million jobs• Generates $17.7 billion in annual federal and state tax revenue

Economic Statistics (Bicycling) National

• In 2005- 19.8 million bicycles were sold in the United States (4.4 M more than all autos sold)

• NBDA-$5.6 billion in retail sales of bikes/parts annually

• Average Bike Retail Shop has 6 FTE’s• 4,200 Retail Shops in US (>25,000

FTE’s)

Economic Statistics (Bicycling)-National

• Produces $53.1 billion annually in retail sales and services– $6.2 billion in gear sales– $46.9 billion in bicycling-trip expenditures

Wisconsin Economic Impact (Bicycling)

• 49% of Wisconsin Residents bicycle• Economic Impact of bicycle

recreation/tourism is $925 million• Average Daily Expenditure-$60• Greater Impact than Hunting• 57% of Expenditures from

Non-Residents

Minnesota Economic Impact

• Road Bicycling $686 M Per year• 4,148 Jobs• Mountain Biking• $318 M Per Year• 1,116 Jobs

Wisconsin Economic Impact (Bicycling)

• Bicycling Contributes $1.5 Billion Annually and 13,200 jobs (including tourism) to Wisconsin’s Economy

• 2.5 Million WI Residents Ride Bicycles for Recreation

• Over 300 Bike-Related Events in WI

Economic Impact (Bicycling)-Regionally

(IN, IL, MI, OH, WI) • Contributes $17 billion to

regional economy• Supports 191,000 jobs• Generates $2.2 billion in

state and federal tax revenues

Economic Impact (Bicycling)-Regionally

• $12.1 billion in retail sales• ($873 million in bicycling gear sales)• ($11.2 billion in bicycling trip-related

expenditures)

Economic Impact (Bicycling)-Regionally

• 2001 Bicycle Tourism Brought $66.8 Million to Maine Economy

• Bicycling Related Businesses bring $315 M to Minnesota’s Economy Annually

Defined Location Economic Impact

• Trails in Miami Valley of Ohio attract 1,000,000 visitors who spend $16 million on related goods and services

• 2009 USA Cycling National CX Championships brought $1 M to Bend, Oregon

• RAGBRAI-$24 M in Economic Impact• Moab Utah-$8.8 M in Economic Impact

(1996)

Defined Location Economic Impact

• Bicycle Industry in Santa Cruz, CA Generates more than $130 M in Revenue-500 Jobs

• Bicycle-related economic activity provides $90 million and 850-1150 jobs for the city of Portland, Ore. From 2006 to 2008, the value of the Portland bicycle industry increased 38%

Defined Location Economic Impact

Bicyclists in the northern Outer Banks region of North Carolina bring an estimated $60 million annually to the area's economy, nearly nine times the one-time expenditure of $6.7 million of public funds to construct bicycle facilities in the region. 1,400 jobs are created and/or supported annually by the bicyclists' expenditures.

Defined Location Economic Impact

The Harbin Park Cyclocross Race in Cincinnati, OH was estimated to bring $200,000 to the community in 2010. 70% of participants traveled in from over 100 miles to compete, and more than 80% stayed two nights or more in the region.

Defined Location Economic Impact

• Chequamegon Area (Cable/Hayward)-$1.17 M in 1997 (likely 3x this now)

• 161 U.S. Ski Areas open trails to bikers in summer-84 run lifts for cyclists

• 50% of Colorado Tourists are engaged in cycling- $141M-$193 M

• American Birkebeiner Brings in $4,000,000 to Hayward/Cable Area

Defined Location Economic Impact

• Colorado-Other Revenue Generators• Bicycle Tours $640,000• Racing $2,000,000• Charity Rides $3,400,000

General Public Assumptions

• Cyclists Are Cheap• Participants do not spend as

much as other user groups (Tourists)• Participants have average

income levels• Participants (off-road)

are 20-somethings

Facts about Cyclists

• 53% of participants in Chequamegon Fat Tire Festival (2,500) are between 35-49 years

• 30% of Cyclists have Household Incomes over $125,000

• 49% of Cyclists have Household Incomes over $100,000 (ABSF Survey)

• 87% of Cyclists are college graduates

Silent Sports Trends• 1998-2004: Snowshoeing +50%, Trail Running

+20% for Participants and Enthusiasts• Single Track Bicycling +183%,

Dirt Road Bicycling +112.5%, Snowshoeing +300% for Enthusiast Category (Repetitive Potential Visits)

• 16-24 Year Olds:Single Track Bicycling +92.5%, Trail Running +50% (Future Market)

• Female Enthusiast: Single Track Bicycling +112.5%Snowshoeing +100%

• Data from Outdoor Industry Foundation

General Facts About Tourists

• Motel/Hotel Tourists spend $126 per day• Campground Tourists spend $75 per day• Daytripper Tourist spend $40 per day• Often it is assumed that

most cyclists visiting the area are “tourists”

General Facts about Second Homeowners

• Second Homeowners Spend $17,571 Per Year In Sawyer County (Sawyer Co. Dev. Cor. Study-2008)

• Survey sent to all non-resident homeowners with improvements over $80,000

• 100 User Days Per Year

General Facts about Second Homeowners

• Basic Consumption Items-$5,700 per household (Average)

• Recreation Equipment-$2,800 per household

• Needs for Home (Construction, Remodeling) $14,400 per household

Note: Not all spent money in all categories

Land Values Adjacent to Trails

• Developers in NW Specializing in recreational use

• Dependent upon Market• Land Values 3 years ago were double• Land Values today are 50% higher

than non-recreational developments

Your home at the Brook will be located in the Namekagon River Valley. This beautiful and diverse property is a blend of pine and aspen woodlands and partially wooded meadows. Immediately adjacent to the Birkebeiner Ski Trail and Camba Mountain Bike Trails, The Brook is bordered on the north and east by thousands of acres of Sawyer County Forest. Homeowners enjoy 14 km of private trails, professionally groomed in winter for both classic and freestyle skiers, that link directly to the American Birkebeiner trail. The perfect “silent sports retreat”, The Brook beckons to active northwoods enthusiasts who love the feeling that “...one hour at the cabin feels like 5 days.”

Land Values Adjacent to TrailsStatistics on Land Values• How do bicycling investments affect real estate?

– According to a study of the Little Miami Scenic Trail, for every foot closer a house is to the trail, its price increases by $7.05.

Karadeniz, D., 2008, The Impact of the Little Miami Scenic Trail on Single Family Property Values, University of Cincinnati Masters Thesis

– Two-thirds of Omaha, Nebraska, residents who live near bike trails believe the trails would increase the selling price of their home.

Greer, D. L., 2000, Omaha Recreational Trails: Their Effect on Property Values and Public Safety, National Park Service, University of Nebraska at Omaha, June, 2000

http://www.bikesbelong.oli.us/Resources/Real_estate.pdf

Land Values Adjacent to Trails

• Houses located in areas with above-average levels of walkability [or bikeability] are worth up to $34,000 more than similar houses in areas with average walkability levels.

Cortright, J., 2009, "Walking the Walk: How walkability raises home values in U.S. cities," CEOs for Cities

• In a survey of recent transplants to Portland, OR, 62% said that the city's bikefriendliness was a factor in their decision to move there.

City of Portland Bureau of Transportation, 2009, Portland Bicycle

Land Values Adjacent to Trails

• In Minneapolis-St. Paul, for every 400 meters closer a median-priced home is to an offstreet bicycle facility, its value increases by $510.

Krizek, K., 2006, Two approaches to valuing some of bicycle facilities' presumed benefits, Journal of the American Planning Association, 72, 309-19

• Homes within a half-mile of Indianas Monon Trail sell for an average of 11 percent more than identical homes further away.

Lindsey et al., 2004, Property values, recreation values, and urban greenways, Journal of Park and Recreation Administration, 22, 69-90

Data Analysis-ImpactSeeley Hills Recreational

Development• Adjacent to CAMBA and Birkie

Trails• Sample 5.5 Miles of Road• 1994-7 Homes • 2010- 51 Homes• 33 of the 51 are Second

Homeowners• 2 Retirees• 14 (Newly) Permanent

Transplant• 2 Originally from Area

Data Analysis-Impact

50/51 Participate in Silent Sports• Average Home Value $300,000• Economic Impact of New Homes ($13.2 M)

• Average Property Taxes $2,000• Property Tax Revenue $88,000

• Average Expenditure in Sawyer County $17,571

• Economic Impact $589,743 (Annually)

Data Analysis-Impact• Seeley Highlands Development-1997• 67 Acres• 18 Lots• Land Values in 1997-5 Acres: $5,000-$8,500• 14 Homes in 2010• 3 Acre Parcels Sold for $13,000-$16,000 in

1997-2000• 2010: $40,000-$50,000 for same lots

Trail Building – The Beginning

Trail Building Techniques

Uses for this Data• Community Support• Public Support• Grant Opportunities• Volunteer Support • Land Value Increases-Private Land

Uses for this Data

• Grant Opportunities– Many Grants Available – Economic Improvement Grants– Contact Economic Development

Corporation– Similar Focus on ROI

How can I use this Data• Grant Scorers Look At:

– 1st or 2nd Tier Jobs (Permanent)– Money Spent in Community (6x7 Times)– Sales and Property Tax Revenue Generated– Social Impact on Community (Need to Sell your

“story”…..effects on children)– “Emotional” Scoring– Letters of Support from Legislators– Important to Involve Those on Appropriation

Committees (if for Federal or State Grants)– Letters of Individual Support

Uses for this Data

• Public Support– Politicians Understand ROI– Trailbuilding Projects=Tax Revenue– Second Homeowners do not have children in schools, but still pay taxes.

Conclusions

• Mountain Bike Trail Building Increases Land Values

• Mountain Bike Trail Building Increases Property Tax Revenue

• Mountain Bike Trail Building • Produces Local Economic Impact• Trails Brings External Revenue

Conclusions

• Races/Events Promotes Repetitive Visits to Trails (Training for Events)

• Demographic Trends Show Younger Participation in Many Silent Sports-Singletrack Bicycling .