HomeMy WebLinkAboutPresentation - Coachella Valley Association of Governments - South Coast Air Quality Managemnet District 1e11 Projecta Parkway 1�l 1
CVAG is evaluating a project that would connect all nine Coachella Valley cities with a neighborhood electric
vehicle/bicycle/walking path. The parkway would extend along the Whitewater River from Palm Springs to
Coachella with a connection to Desert Hot Springs.
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The concept builds upon a decade's old plan to build bike and hiking paths along the Whitewater River. In 2009,
the Desert Recreation District and Riverside County Regional Park and Open Space District commissioned a study
that estimated the 45 mile path (all the way to the Salton ,
Sea) would cost millions of dollars and was projected to
take decades to assemble the funding, local agency
commitments and construct the project.
CVAG's chairman, Supervisor John Benoit, is leading efforts
to "kick-start" this long time dream with an infusion of
funding. The funding could come from environmental
mitigation payments made by Sentinel Power Plant, a
natural gas fired power plant located between Palm
Springs and Desert Hot Springs. While the plant includes
some of the best and cleanest emission control technologies, the plant's emissions were subject to regulation by
the South Coast Air Quality Management District and mitigation payments authorized by legislation authored by
Assemblyman Manuel Perez and co-authored by then State Senator John Benoit and Assemblyman Brian
Nestande.
Taking advantage of our wonderful climate (most of the year) and encouraging biking,
hiking, and golf cart use is not a new concept in the Coachella Valley. What would be
new is a dedicated path that was safe from conflicts with faster moving automobiles.
Undoubtedly, the concept of a Parkway 3P-11, largely parallel to the existing Highway
111 could be even more expensive than the original bike trail plan. However, if the project is designed
correctly, a mix of environmental mitigation funds, conventional transportation dollars and perhaps less
conventional funding could be used to build and maintain such a system. Perhaps this infrastructure could
stimulate the use of new technologies in the Coachella Valley and be the first of its kind in the State and Nation.
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While the project is still being conceptualized and studied, we know the project could benefit the Valley by
relieving some congestion on Highway 111, provide air quality benefits, offer another amenity for our tourist
industry, provide an avenue for people to get off their sofas and get exercise, and, last but not least, stimulate
the economy with the need for engineers, surveyors, and many construction related jobs.
CVAG looks forward to working with the public, our partnering agencies and many
others to determine if such a Parkway is feasible. Some of the challenges that
must be addressed is how best to work around, under, over or through golf
courses, bridges or other constraints built over time in and around the channel.
By the way, next time you travel down and around the Whitewater channel,
notice for yourself how much of the route is already in place, or as is the case with
bridges under construction now, how elements of the project are currently under
construction, like the undercrossing at Adams Street in La Quinta.
For more information, please contact cvag@cvag.org or 760-346-1127.
a Parkway lel 1
the itsert Sun
DECEMBER 6, 2011 WWW.MYDESERT.COM
--- SERVING THE COACHELLA VALLEY SINCE 1927
The Whitewater River wash near Michael S. Wolfson Park at Da Val) and Frank
Sinatra drives in Rancho Mirage. CRYSTAL CHATHAWTHE DESERT SUN
Leaders hope to secure $53 million in funding by
accommodating electric vehicles on proposed trail
By Erica Felcl
The Desert Sun
c';>zwhella Walley leaders %cant to secure a
1�5._ iinllwn pc�t of funds by building a trail
along Whitewater River for neighborhoW
electric vehicles, golf carts and bikes.
The paved path would extend from
Desert Hot Springs to Coachella, offering
travelers plug-in stations, rest areas and
connections to the valley's existing trail
systems.
Building a trail along the wash has been
discussed in concept for years, but the
idea was tabled due to the staggering
price tag and a desire to spend the money
on other investments.
A 2009 study indicated a lower -tech
path for bikers, joggers and horseback
riders would cost $38 million.
The newest version of the plan likely
will carry a larger price tag, but with a
key difference -- electric vehicle access
— for the specific goal of securing money
that's been set aside for improving the re-
gion's air quality.
The idea — a brainchild of Riverside
County Supenisor John Benoit and
Coachella Valley Association of Govern-
ments Executive Director
Tom Kirk — was shared with
the valley's mayors and city
managers on Monday.
if the trail is finally re-
alized, supporters think it
would be welcomed by lo-
Benoit cal residents and provide
another draw for tourists.
"This is alternative
transportation to Highway
{{ 111, which is our most
r I crowded corridor and one
i we've never been able to
.1 fix," Kirk said.
Kirk "It could be a spine to the
valley."
The Whitewater wash path idea is get-
ting a new look because of $53 million that
was set aside by the developers of the
Sentinel Power Plant near Desert Hot
Springs.
Assembly Bill 1318, legislation from
Assemblyman V. Manuel Perez, required
the money to offset any environmental
impacts from the project.
The money is in the hands of the South
Coast Air Quality Management District,
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ty
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Plotting the trail
A proposed paved trail along the
Whitewater River wash would span from
Desert Hot Springs to Coachella. Officials
envision an expanded version of a
traditional path, with 14-foot-wide paved
lanes where electric vehicles, bikes and
pedestrians could travel, with plug-in
stations, rest areas and connections to the
valley's existing grail systems. In order to
avoid golf courses that stretch across parts
of the wash, segments of the path could
piggy -back on existing roadways.
WHAT DO YOU THINK?
Would you use the proposed paved trail
for electric vehicles, golf carts and bikes
along the Whitewater River wash? Vote
at mydesert.com
TRAIL
Continued from Al
and is now tied up in litiga-
tion. It should be available to
distribute to qualifying pro-
jects early next year.
This summer, Benoit —al-
so an air quality district
board member — encour-
aged valley leaders to brain-
storm ideas on what pro-
jects would qualify for the
money. A normal trail
wouldn't qualify. But one
with neighborhood electric
vehicles does.
The concept is in its earli-
est stages. But officials envi-
sion an expanded version of a
traditional path,, iN ith 14-foot-
wide paved lanes designat-
ing where vehicles, bikes and
pedestrians could travel.
The four -wheeled vehicles
are designed for short trips,
and usually top out at 20-25
mph.
Early estimates show the
trail would take 10 years to
build. Certain segments, us-
ing existing citypaths, could
be available in the next few
years.
Benoit called the plan
"something dramatic,
something iconic" that
would be used for years to
come. And he said it's get-
ting warm reception from
leaders across the region.
"There's all kinds of poten-
tial," Benoit said.
But big dreams often
come with big hurdles:
■ Local officials still have
to convince the regional air
district to set aside all of the
money for the desert.
■ Even if they secure all
that money, they'll need to
tap into other grants and
funding sources to cover the
rest of the cost.
v And should all the funding
Two men ride bicycles on the Butler -Abrams Trail, which runs along the Whitewater wash
behind Michael S. Wolfson Park at DaVall and Frank Sinatra drives in Rancho Mirage.
CRYSTAL CHATHAM(THE DESERT SUN
come together, building the
path would require an un-
known number of property
o,Amers to give up right-of-way
for public access.
Officials also will need to
figure out how to route the
path around the handful of
golf courses that stretch
across parts of the wash. So-
lutions could include seg-
ments of the path that are
part of the roadways.
"That was probably one of
the largest hurdles in the
past," Benoit said of accom-
modating existing golf
courses.
Palm Springs resident Don-
na Chabin knows the chal-
lenges of safely driving neigh-
borhood electric vehicles.
She owned a GEM vehicle
from 2002 until2006, using it
for small trips around the
valley. But the vehicle's
slower speed required her
to creatively map out her
route to avoid faster
streets.
"They can't go down Palm
Canyon (Drive) and get
from Palm Springs to Indio.
They could do it if they had
side streets," said Chabin, a
member of the valley's elec-
tric vehicle association.
"A lot of people philosoph-
ically like the idea of electric
vehicles. Butthey hesitate be-
cause if they're out and about
and need to plug in, they don't
know where to plug in."
In the first litmus test for
the project's feasibility, the
Coachella Valley Associa-
tion of Governments' exec-
utive committee agreed to
spend up to 5100,000 to fur-
ther study the Neighbor-
hood Electric Vehicle/Bicy-
cle Parkway project.
While unanimously sup-
ported, several members
asked about the other pro-
jects that could benefit from
the $53 million that will soon
be available.
The approved budget in-
cludes $40,000 to be used as
the local match if CVAG se-
cures a related grant from
the California Energy Com-
mission.
"This is a lasting legacy,"
Riverside County Supervi-
sor Marion Ashley said.
"Countless generations will
benefit from this."
Zrhe ,L`'f"esert Sun
141':Ii\Ic�it i1. itT':i'ItirlfiEk ",:''i•,' WWW-X1YDESFRT.CO\t
- - tilatVING THE COACHEI.ira �ai.l.t;Y SIN,t
rail for oIf
,� carts and
cyclists a. visionary
"Wouldn't it l.e g're•ait if the Coachella
Valley Wert. known not only few golf
(•0111-sc8 Mild world -class resorts, but
-dso -is a place where people can get
aground Wit hout fi!-rhting traffic and
fouling the" aatillos})here?
Thanks to the leadership of the
Coachella ►aachellaa X<allesy- Association elf
Gox--?rniln',nis H:XVCU.tiVU Director 71-oni
Kirk and Riverside County Supervisor
.()hn Benoit, cve'rc one step closer to
that possibility.
'I'lle two presented a plan on. Monday
to OIC valley's 111aY01' ; grid rill y
nutnaat;ers it) ereattt- al 5U-mile,
1-14)ot-wide. trail roughly ailcltl r ttu,
Whitewater River for electric vehicles,
golf carts, hikers, horseback riders,
joggers and hikers.
The cotic•ept has been debated for
ycal` but aaI«VayS hit the dead end of a.
I ris c• toat„ VStitllatted at S1 million as guile.
1 €mvevor, the rle%,C1opers of the Sentirle=l
I'owe>r I'laant near Desert Hot SI-wings
Nvere required 10 set aside $53 ntillintl tr,
offset environment. .in-ij),ac-t :. 'I -I ie .trai l
pro jest could f.,,o at long; way toxvard
reaching that. goal.
Ni,�(•attasc- of the e'llipha-tsis oll electric
ve�hielc�s - --- i'll(IUdiilg charf.;inx; stations
a110119 t}le wary -- the traail. could qualify
for the fimclintr. WIlich will lie in the
hands of the Sc)ulh Air Quality
Niaanagrentent: Distric:l. Benoit tilt~ oyi the
board.
`FlIL' ikVsc•rt ;Mall INUS, leant; aac}vc►cated
fe.r (. List s i bike lanes. de dic-altect for
e_y'c•li;:t;, altl(l ills• use of j?e>lI rar-ts for
Short Trips. ��'E "`( sul.)porte'd I'atllli
l ac =c'i t pia`h to allow -olf caa.rts on city
I.,a ulic-ht-d h%, A seital)ly Bill
1 '2"?s) na 199:;, it i�z sliniaatt_d that the
Pal l.nl I_)e'wc*t: t t;c iI1 c-<t.i t l at: <>L� t arl t i salt c 16
it.ilt t c;1 c:ai2'})+..11 111,i1+rXWO at N'eaar. Rancho
ELECTRIC CAR SHOWCASE
What: Electric vehicles, including a Tesla Roadster,
Leaf, Volt, a converted PT Cruiser and solar
conversion cars, will be on display.
When: 11 a.m.-2 P.M. Saturday
Where: Camelot Theatres. 2300 E. Baristo Road,
Palm Springs.
Film: "Revenge of the Electric Car" will be shown
starting at 12:15 p.m.
More information: Call (760) 325-6565 ur visit
www.ca me lottheatres.com
A'Iirage, La Quinta and Indio also have
golf cart programs.
Ilut at paath just for golf carts and
()then pollution -free modes of
tr.ansportaticln is safer and should be
nlore attractive to -a residcsnts and
tratil is intended for
vehicles that usually tor, out at 20-25
Iilj)h.
There is growing interest in electric
vehicles in the valley Last week,
Assemblyman V. Manuel Perez test
drove a plug-in Toyota Prius at Poterc
tir)latr in Rancho Mirage. Perc>z chairs
the California Select: Cc)nitllitt.ee on
Renewable Electric Energy Hcotlonly ill
Rural California. His legislation created
the power plant's etl.,-ironnzellttal fuIld.
On Saturday, electric cars will be on
display at Can-ielot Theatres in Palin
'-'j.)i-iilgS, 1%1,7hic.•h will show "Rew-mge of
tll.e Electric Car." The Ilewiv. foraged
Grealer Palm Slarinf.;s Area Llectric
Auto As ociattioll will be there, to(.).
The Neighborhood Electric
Vehicle/Bicycle Parkway project could
take a de ezid(: tO eornplete:. Benoit c-aillc-d
It "se)i et11ir)g dralinttic, tifllraC`1lliI1
iconic." I lis collc:aa)411(!. Supervise 1r
14.a.arioll sI levy; c atllc d it at "lasting
The L)es(lrt ~lug alga c'Cs aitici
e't1C otirzigt-s thc: ,fir %1tt<'t11t1'
fundil 1pc .
Parkway lell
As of March 28, 2012
CVAG
Index of Support letters
Newspaper Editorial
The Desert Sun
Business and Tourism
Building Industry Association of So. California
Coachella Valley Economic Partnership
Desert Contractor's Association
Desert Security Systems
Desert Valleys Builders Association
Granite Construction
Hospitality Industry & Business Council
Palm Springs Chamber of Commerce
Palm Springs Desert Resort Communities CVA
Palm Springs Hospitality Association
Palm Springs Restaurant Association
Community Organization
Coachella Valley Community Trails Alliance
La Quinta Cove Neighborhood Association
Education
Cal State Univ. Palm Desert Campus
Coachella Valley Unified School District
College of the Desert
Desert Sands Unified School District
Palm Springs Unified School District
So.Cal. Research Initiative for Solar Energy/UCR
UCR Office of Sustainability
UCR Palm Desert Graduate Center
Electric Vehicle
American Golf Cart Services
Coachella Valley Electric Vehicle Collaborative
Renova
Powerstride Golf Cars & Battery Co.
R&R Golf Cars
Environmental Organization
Friends of the Desert Mountains
Sierra Club
USGBC Inland Empire Chapter, Inc.
Health
Desert Regional Medical Center
Eisenhower Medical Center
JFK Memorial Hospital
Kaiser Permanente
RivCo Community Health Agency/Public Health
UCR School of Medicine
Other
Santa Rosa and San Jacinto Mountains National
Monument
Recreation
Desert Recreation District
RivCo Regional Park & Open -Space District
Regional & Transportation Planning Agency
Riverside County Transportation Agency
Southern California Association of Governments
utility
Coachella Valley Water District
Southern California Edison
Cities and County (Specifically to Support
Application for Sustainability Grant from CA)
City of Blythe
City of Cathedral City
City of Coachella
City of Desert Hot Springs
City of Indian Wells
City of Indio
City of La Quinta
City of Palm Desert
City of Palm Springs
City of Rancho Mirage
County of Riverside
,._
Parkway lei 1
,. r� ECONOW PA VALLEY
, ECONOMIC PARTNERSHIP
V CLIMATE FOR SUCCESS
t6
Executive Summary - The Economic Impact of The Parkway lell study prepared by John E. Husing, Ph.D.
For years, the Coachella Valley's leaders have recognized the need for an alternative to the SR-111 to allow
residents and visitors to move between their homes or hotels and the valley's wide range of retail, recreation and
entertainment venues. As designed, the proposed Parkway lell would fill this need in a unique and powerful
way. Parkway lell would be an aesthetically pleasing, very high quality, automobile -free corridor running 46
miles from Palm Springs to beyond the City of Coachella, parallel to the SR-111.
In May of 2012, Inland Empire economist Dr. John Husing completed a study on Parkway lell, determining that
the proposed corridor would have a profound impact on the region. The cost -benefit study, based on a wide field
of research, found that the Parkway lell will be a game -changer for the valley's residents and the local economy.
Because the pathway would be grade -separated from the intersecting streets, but would allow entrance and
egress to them, Parkway lell would provide walkers, joggers, cyclists and owners of Neighborhood Electric
Vehicles (NEVs) with a beautiful, safe and
environmentally friendly way to improve
air quality while traveling from point-to-
point. Similar corridors in other resort
areas have dramatically raised tourist
visits and economic activity, despite not
being grade separated.
The Parkway lell is designed for events
drawing runners, cyclists, in -line skaters,
NEV owners and solar -powered vehicle
enthusiasts. Health advocates see the
Overpass at Fred Waring Drive Parkway tell as an environment to
counter inactivity and obesity, inspiring
local residents and retirees to lead far more active lifestyles. Home and business owners would see their property
values rise. Those who worry about safety recognize that over 80 percent of the valley's auto accidents involving
cyclists, as well as pedestrian fatalities have occurred within two miles of what would be a safe pathway.
INVESTMENT COSTS
Investment costs would total $80,414,600. $70 million is projected to be spent over a ten year period on
construction. Routine grooming and maintenance costs are projected at $9.4 million over 20 years (approximately
$500,000 a year upon trail completion). Facility, trail and pavement refurbishment is also assumed; $1,030,000 in
total would be spent refreshing the facility over the 14 years from 2022 — 2035 at $73,600 per year. The facility
will thus be continuously restored to its high level of quality.
JOB BENEFITS
The Parkway tell would create 743 worker years of construction and related jobs over the course of
development. As well an additional 690 permanent jobs would be added, associated with the increased visitor and
tourist -related spending. Importantly, over 90 percent of the jobs are likely to be filled by modestly educated
workers, aged 25-64, who live in the Coachella Valley and are predominately Hispanic.
Parkway M I
Impact,Construction
Impact Type
Employment
Labor Income
Value Added
Output
Direct Effect
482
$29,311,826
$33,338,956
$70,000,000
Secondary Effect
261
$11,927,503
$20,009,493
$32,396,452
Total Effect (2035)
743
$41,239,330
$53,348,449
$102,396,452
Ten Year Effect
74
$4,123,233
$5,334,845
$10,239,645
ECONOMIC BENEFITS
The impact study found that overall economic benefits for the Parkway 1e11 would total $1.47 billion. Substantial
potential benefits are documented in the study regarding economic and job impact numbers that would be
delivered to the Coachella Valley economy by the construction and use of the Parkway 1e11. Contributing to the
$1.47 in economic benefits includes:
• Health - Reduce medical costs from reduced obesity
$152,250,985
• Events - Tourists coming for five types of annual events
$137,357,016
• Safety - Reduce impact of pedestrian and cycling accidents
$136,920,280
• Tourism - Increase in cyclists drawn to stay in area hotels
$487,376,407
• Secondary Impact - Indirect & induced impact of events & tourism
$300,111,945
• Residential Valuation - Impact on homes valuation within Y2 mile
$103,409,166
• Business Valuation - Impact on business valuation within % mile
$21,735,260
• Gasoline Saving - Budget savings from avoiding gasoline purchases
$28,830,409
• Construction - Money flowing to local firms & secondary impact
$102,396,452
COST -BENEFIT SUMMARY
To judge whether the Parkway 1e11 makes economic sense, the costs and benefits of the project were compared
against economic activity through the year 2035. The analysis found that for every $1 in public money spent
toward the cost of the $80.4 million project, $18.29 would be returned in benefits to the Coachella Valley
economy. That represents a ratio of $1.00 v. $14.04 in discounted present value terms. Once the first phase of
the Parkway 1e11 is completed (23 miles) the $70 million required to build the full 46 mile facility will already be
matched by the first 1.52 years of economic activity stimulated from the project. That will occur despite counting
none of the economic benefits from the local construction activity set-off in building the facility.
Parkway 1e11- Costs versus Economic Benefit (in millions)
$1.47 Billion
$1,400 -
$1, 200
$1, 000
$800 -
$600
$400
$200 80 Million
$0
Cost Economic Benefits
(including construction, maintenance
& reconditioning)
2 Parkway M 1
PROJECT BENEFITS
The Parkway tell would realize numerous benefits over time, based on conservative but "cautiously optimistic"
assumptions, for these reasons:
Public Health — Reduced medical costs from reduced obesity - $152.2 million
The Desert Health Care District views Parkway lell as central to their efforts to increase physical activity in the
Coachella Valley, a region with a growing base of retirees and school -aged youth who are overweight and have a
high degree of obesity. Health care researchers are unanimous in the view that increased exercise and activity can
decrease the incidents of disease and lower health care costs. Research conducted on 45,520 Medicare retirees in
2005 found that moderately active retirees had $1,456 lower health care costs than their more sedentary
counterparts. Another study found physically active people aged 15 and older spent $330 less on healthcare
annually, $1,019, than those who
reported being inactive, $1,349.
The cost -benefit study, assuming three
levels of success from the public health
initiative aimed at the obese
population, noted that medical cost
savings in the valley at a 10% success
rate — or 9,670 people — would be
achieved in the third year with $4.9
million in health care costs saved each
year. After 2025, with the Parkwaylell
.;acksoii rack, mu:(. v. r Gr; 4, i;; oa.: Y-.ground achieving a 20% rate of success, the
medical cost savings for 19,339 people
would hit $9.8 million, and hold at that level through 2035. Adjusting those figures, the full public health benefit
measured as a reduction in medical costs would total $152.2 million through 2035.
Major Events — Tourists visiting for five types of annual events - $137.3 million
As a tourist mecca, the Coachella Valley claims a wide variety of nationally recognized tourist events -- from golf
and tennis tournaments to film festivals and music concerts. The region's list of major events already includes the
Tour de Palm Springs cycling event and the Palm Springs Half Marathon, Half Marathon Relay and 5K Run. The
Parkway lell would allow these events to be connected to local hotels by a pathway. It would enable the
Coachella Valley to expand its menu of events and athletic competitions, all of which would fill hotel beds and
pump spending on resort amenities, entertainment, shopping, groceries, casino gaming, and dining.
The cost -benefit study assumed Parkway lell would attract one additional half marathon with attendance equal
to 75% of the Big Sur race with 4,000 runners; one bicycle race with a slightly larger roster than the 2012 Tour de
Palm Springs, which attracted 9,136 cyclists; one In -Line Skating event with 300 participants; one NEV/Cart race
and one solar car event for California colleges, each attracting 30 to 50 teams. By the third year, the five added
events would reach its estimated impact from hotel stays and visitor spending of $7.6 million, and remain at that
level. Through 2035, that would inject $137.3 million in direct new spending into the Coachella Valley economy.
Parkway W 1
3
Tourism — Increase in cyclists drawn to stay in area hotels -
$487.4 million
The spark that has driven the Coachella Valley's economy through
its history has been tourism. It has also struggled to bridge a
misconception as a spot offering only retirement and golf.
Today's tourists are sophisticated and seek a wide range of
activities across Greater Palm Springs while on vacation, or while
attending conferences or conventions. The Parkway 1e11 would
put a fresh amenity on their plate, offering unique and attractive
access to world class hotels, Indian gaming, headliner shows, luxury shopping, golf courses and tennis facilities,
while connecting them via electric carts or their own foot power to jog, walk, skate or cycle. As such, the Greater
Palm Springs CVB and the Palm Springs Hospitality Association, along with managers of the valley's major tourist
venues, strongly support the Parkway 1e11 as a magnet for tourists and a new marketing platform.
To study its impact, sites were set on a technical report on North Carolina's investment in the Northern Outer
Banks bicycle facility, a high -quality bicycle path along the ocean. The corridor was researched for its impact on
tourism. Applying calculations from the North Carolina cycling study to the proposed Parkway 1e11 experience,
the cost -analysis found that the Coachella Valley could expect the average historical hotel occupancy rate of 57.1%
to increase 0.75% to 1.50% by 2019 to occupancy levels of 57.9% to 58.6%. Under that scenario, the Parkway 1e11
would increase the number of hotel room nights sold for overnight stays by cyclists by 22,164 to 44,328 annually,
netting $2.7 million to $5.4 million in added hotel revenue. Calculations were based on a room night average of
$121.49.
Total Annual Increase
In Visitor Spending From Parkway lell
Pessimistic Cautious
0.75% 1.00%
Cautious Optimism
1.50%
Assumed Potential Increase in Room
Occupancy
Average Non -Hotel Spending Per Trip
$588.00
$588.00
$588.00
Added Trips
22,164
29,552
44,328
Increase in Non -Hotel Spending
$13,032,556
$17,376,742
$26,065,113
Increase in Hotel Revenue
$2,692,645
$3,590,193
$5,385,290
Total Impact of Added Cycling
$15,725,201
$20,966,93S
$31,450,403
Non -hotel spending, at $588 per trip, would rise anywhere from $13 million to $26 million. Taken together, the
total annual increase in visitor spending from cycling alone would be $15.7 million to $31.4 million annually.
Assuming it would take three to nine years to increase the overnight visitor stays from 0.75% to 1.5%, the total
direct impact from added tourism would be $487.4 million.
Secondary Spending — Indirect & induced impact of events and tourism - $300.1 million
Once an economy receives a direct injection of fresh external money, in this case, through new events and
increased tourism, that money is re -spent by the firms and workers receiving it. The major "direct" spending
impacts would be from hotels, $7.8 million; food, beverage and dining, $8 million; entertainment and gaming, $5
million; shopping, $3.8 million; and gasoline, $3.7 million. This creates a second tier of economic impact. Entering
that data into the IMPLSN Model allows secondary impact to be calculated. From 2017 through 2035, the
Coachella Valley would realize $300.1 million in secondary spending. The Parkway 1e11 would create 408 to 501
4
Parkway M 1
permanent jobs, as part of that spin-off
effect. Payroll would be $13.6 million to
$22.9 million annually. Average pay in the
new jobs would range from $33,305 to
$33,474.
Property Values — Impact on homes
valuation within %: mile - $103.4 million
Property values can be impacted by a
metropolitan trail. An economic study of a
segment along the Miami Scenic Trail in
Ohio found that homes located within 1.7
miles of the corridor — worth $263,517 on Rancho Mirage Library Charging Station
average -- had a 3.4% premium of $9,000
on the average home price. To see how an urban trail would affect property value in the Coachella Valley, GIS work
was undertaken by the Coachella Valley Association of Governments to identify 956 residential properties or
parcels within 2,640 feet of the proposed Parkway 1e11. It applied the 3.4% premium, and determined that
assessed values on property would rise by $37.6 million. At a tax rate of 1% the valuation increase would generate
$376,635 more in local property tax revenue annually from 2017 to 2019. At Parkway 1e11 build -out, 2020, the
valuation premium on residential property would be $58.4 million, generating $584,487 in additional property
taxes. Another important study on a 67-mile trail system in Omaha found that 65% of residents living nearby felt
their homes would be easier to sell; and 42% felt it had a positive impact on the listing price. Further, the Omaha
trail was found to be a factor in purchasing decisions in 63.8% of all sales.
For business properties, the full impact of Parkway 1e11 from 2021 going forward could realize assessed valuation
increases of $12.9 million to $21.7 million, generating $129,231 to $217,353 in added local tax revenue annually.
Fuel Cost Savings — Budget savings from avoiding gasoline purchases - $28.8 million
An important goal in the valley is to provide pollution -free alternatives to driving on the congested roadways. The
Parkway 1e11 achieves that goal, as it offers ingress and egress to a corridor along which its users could easily
walk, cycle or use their NEVs to move from their homes to numerous retail, recreation, business and
entertainment venues just outside the path. To determine the gasoline savings, Alta Planning + Design estimated
that the number of vehicle miles that would be saved by walkers, runners, cyclists and NEVS from 2017-2035
would reduce vehicle miles traveled (VMT) by 144.5 million miles (VMT). Consumer gasoline savings would total
$28.8 million in 2012 dollars. Air quality would improve, as well.
The 144.5 mile VMT reduction would eliminate airborne emissions ranging from 70,734 pounds of PM10 and
16,250 PM2.5 to 117.6 million pounds (58,786 tons) of carbon dioxide (CO2). Translating the (CO2), hydrocarbon
and nitrous oxides into metric tons of carbon dioxide equivalent (MtCO2) indicates the project would eliminate
48,527 MtCO2. This would increase the health of people living in the region, and contribute to a desired reduction
in greenhouse gases in the Coachella Valley.
Parkway lel 1
141
Safety — Reduce impact of pedestrian and cycling accidents - $136.9 million
The Coachella Valley Economic Blueprint called for facilities like Parkway lell to be developed, giving residents
the opportunity to walk, jog, cycle or use their NEVs in a safe, vehicular traffic free environment. It was estimated
that with the corridor fully completed, an annual average of $8.2 million in annual losses due to the accidents that
would be avoided in the Coachella Valley if the Parkway tell us used as an alternative to State Route 111. The
projection was based on a conservative estimate from the Coachella Valley Association of Governments of 94
fewer incidents involving walkers, joggers, and cyclists.
Construction — Money flowing to local firms and secondary impact - $102.4 million
Coming off a period from June 2006 to March 2012 when the construction sector laid off 77,600 workers, the $70
million Parkway tell project would create 482 direct construction jobs. Those jobs alone, would net $29.3 million
in payroll, an increase of 12.2% over $241.1 million in 2010 payroll in construction. As construction workers and
firms buy local goods, another 261 secondary jobs would be created elsewhere in the economy with payroll
totaling $11.9 million. The total impact from the $70 million construction project and the $32.4 million in
secondary output would cause total output in the valley to increase by $102.4 million.
Impact,Exhibit 28. -Construction
Impact Type
Employment
Labor Income
Value Added
Output
Direct Effect
482
$29,311,826
$33,338,956
$70,000,000
Secondary Effect
261
$11,927,503
$20,009,493
$32,396,452
Total Effect
743
$41,239,330
$53,348,449
$102,396,452
Ten Year Effect
74
$4,123,233
$5,334,845
$10,239,645
An issue of extraordinary importance is the need to expand the valley's economic base to lift the standard of living
for a large portion of working residents who are modestly educated and are significantly unemployed or under-
employed. Additionally, the need for job creation in this group has important social justice implications since a
disproportionate share of the residents are Hispanic. Underscoring the economic challenge is the Coachella
Valley's high rate of unemployment. The Coachella Valley unemployment rate in 2010 was 17.5%, with 21.5% of
the area residents living below the poverty level. For these reasons, an expansion of the valley's economy is vital to
the economic well-being and health of its residents and their families.
In Summation
The Coachella Valley Economic Blueprint included a strategy calling for a better connection to valley communities
through the development of a non -motorized infrastructure and way finding program. This includes the
development of bicycle and pedestrian infrastructure for the benefit of connecting regional communities. Parkway
lell represents a multi -faceted valley -wide approach that would improve the Coachella Valley's quality of life now
and for generations to come.
CVEP has prepared this Executive Summary based on the information included in The Economic Impact of The
Parkway lell study prepared by John E. Husing, Ph.D.
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Parkway M 1