Highway 53 Relocation: Economic Impact Study Economic Impact Analysis Study Findings and Conclusions November 7, 2013

Presentation Outline Study Objectives Study Scope and Tasks Service Provider Coordination Economic Analysis

Determine impact of the project alternatives on the local and regional economies Engage stakeholders to understand the range of issues Provide a comprehensive economic impact analysis to include in the EIS Study Objectives

Stakeholder Outreach Data Collection Economic Impact Analysis Documentation Study Scope and Tasks

W1A

Stakeholders –Municipalities –Emergency Services –School Districts Outreach and Coordination –June 18 th Coordination Meeting –Data Collection follow-up Service Provider Stakeholder Coordination

Implementation of Alternative W1-A would introduce very substantial adverse impacts to roadway dependent operations including fire and rescue, school bus operations, and municipal maintenance activities There are no substantive operational impacts associated with the remaining “build” alternatives Overall Conclusions

Virginia – $21 million in capital expenditures Virginia Emergency Services - $3.8 million capital and $2.0 million additional annual operations Eveleth – $28,000 additional annual costs Virginia Schools – $1.6 million additional annual costs Eveleth-Gilbert Schools – $66,000 additional annual operational costs Stakeholder Financial Impacts

City of Virginia - businesses located on the existing Highway 53 corridor are at significant risk if the westerly route is selected; City of Eveleth – loss of mutual aid services with Virginia; City of Gilbert – increased ambulance service time to Virginia hospital and loss of water interconnect with Virginia; Other Stakeholder Impacts

Other Stakeholder Impacts (cont…) City of Biwabik – increased travel time for commuters and shoppers to Virginia and long term land development impacts because of increased distance to Virginia City of Hoyt Lakes – increased ambulance service time to Virginia hospital (Duluth might become primary destination) Virginia and Eveleth-Gilbert Schools - schools transport children among the various communities. Increased travel time will put shared services programs at risk

Highway 53 Travelsheds

Foreseeable additional impacts in Travelshed A communities resulting from the longer distance and travel times resulting from Alternative W-1A include: Employees living in Virginia and Travelshed D and some portions of Travelshed E will experience higher commuting costs. Employers will experience difficulty in retaining and attracting workers from Virginia and Travelsheds D and E. Convenience retail and services will experience short-term increase in business until declining population reduces demand. Businesses will experience higher costs to serve customers in Virginia and Travelsheds D and E. Reduced demand for housing and lower prices for existing homes.

Higher commuting costs may cause workers to seek jobs closer to home. Increased travel costs for work, shopping, and other trips will reduce income for other household purchases. Residents and businesses that use St. Louis County services will experience longer travel times to government offices. St. Louis County will experience higher costs to provide services in the East Range area. These are but a few of the economic and social impacts of Alternative W-1A on residents, businesses, and other entities in Travelshed A.

Questions / Comments Roberta Dwyer, P.E. MnDOT – District