The Economic Contributions of Kingdom City, MO

1
The Economic Contributions of Kingdom City, MO

• The Community Policy Analysis Center
• Draft review by Kingdom City Highway Coalition -
  8/5/02

2
Purpose - assist in defining economic impacts of
the highway interchange at I-70 and Hwy 54.
3
How do we do this?

• Survey the businesses, find out information on
  employment, payroll, sales, and economic linkages
• Ask business owners about amount of business that
  can be attributed to interchange
• Using the information on businesses, use IMPLAN
  to define the economic impacts

4
IMPLAN Results

• Through survey, we know that in Kingdom City
  there are 606 jobs with a payroll of 7,748,000
• These jobs and payroll generate additional jobs
  in the area. These jobs have a payroll that is
  spent on additional goods services in the area.
• Including the additional effects, Kingdom City
  supports 749 jobs and a payroll of 10.3 million

5
Highway Impacts

• How do we examine the highway impacts?
• Survey question What percentage of your
  business do you believe is local and not related
  to through traffic from I-70 and US 54?

6
Highway Impacts

• Most responded that about 5-10 of their business
  was local. There was one report of 1, and one
  report of 50. Some replied that they were
  unable to quantify.
• Considering this, 90-95 of the business
  transactions that take place in Kingdom City are
  due to the highway interchange.

7
Highway Impacts

• CPAC assumptions - If you moved or rebuilt the
  interchange in a manner that prohibited through
  traffic from accessing Kingdom City, they would
  lose roughly 90 of their business.
• In losing 90 of their business, Kingdom City
  would most likely shut down.

8
What happens when you shut down Kingdom City?

• CPAC took IMPLAN results and made them negative,
  thus removing Kingdom City and its effects from
  the economy.
• These negative effects were run through CPACs
  Show Me Model for the year 2002 and projections
  were made until the year 2010.

9
Show Me Model results of shutting down Kingdom
City

• Year 2010 projections
• Lose 1,780 residents
• -3.6 reduction in employment
• 57 million reduction in TPI
• 18 million loss in property value (-2.6)
• The County would lose 542,000 in revenues
• (-4.1)
• Refer to page 8 of report

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To be noted

• Impacts could be overstated as businesses would
  re-locate in County
• Improved transportation would make large centers
  more of a draw, therefore the businesses may
  relocate to more attractive locations such as
  Jefferson City or Columbia (out of County)

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Where do we go from here?

• CPAC would like to publish and release this
  report upon approval from Coalition
• Press release? Any objections?
• CPAC would re-run analysis based upon traffic
  projections that would come from any plan or
  projections that MoDOT would provide
• CPAC would not charge for running the analysis
  again based upon projections. Would most likely
  only take a few days