Project: Cattaraugus Economic Development Zone Infrastructure

1.0 Synopsis

This project created Constitution Avenue, a new two-lane, two-mile long arterial connecting an industrial site in Cattaraugus County, NY with I-86. Completion of the road and associated water and sewer infrastructure has led to the development of several industrial sites as well as a strip retail/commercial center. The $3 million project leveraged an additional $5 million in private investment and attracted 11 new businesses. These businesses brought 100 new jobs worth $2.5 million in wages which indirectly supported 95 additional jobs with nearly $1 million in personal income.

2.0 Background

2.1 Location & Transportation Connections

Allegany and Olean, New York are in Cattaraugus County at the center of the 3-County Southern Tier West region in Northwest New York. The main transportation corridor through the region is the east-west Interstate 86, also known as the Southern Tier Expressway, which was constructed in the 1980's and 90's. The nearest airports are Bradford Regional, located 40 miles away in Bradford, PA, and Buffalo International Airport, 75 miles to the north. The closest port and rail intermodal facilities are also located in Buffalo.

2.2 Community Character & Project Context

Most of Constitution Avenue is in Olean, NY. The City of Olean is the largest town in rural Cattaraugus County, surrounded on three sides by the Town of Olean. The remainder of the road is in the Town of Allegany on Olean's western border. Together, these communities are a regional center of employment and commerce within the Enchanted Mountains of Western New York along the Allegany River. Cattaraugus County is part of the three-county Southern Tier West region of Appalachia (with Chautauqua and Allegany Counties).

Olean developed as the hub of this region in the 1800's due to significant oil and related natural resources. As a result of oil-related growth, it became a central station of a major train line, which further attracted industry and jobs.

Along with most of rural New York State, Cattaraugus County has lost population over the past few decades, and Olean lost population at a slightly faster rate. By the 2000 Census, Olean had a population of 15,347, having lost population at an average rate of 0.9 % per year since 1980. For comparison, Cattaraugus County, with a 2000 Census population of 83,955, lost population at an average of just 0.1 % per year during that period.

By 2000, employment in Cattaraugus County reached more than 42,000, having added jobs at an average rate of 0.8 % per year for the past two decades. Olean has long been established as a major employment center in the Southern Tier West region, accounting for approximately 11,000 of the county's jobs. Much of this employment is concentrated at the western edge of town, adjacent to Saint Bonaventure University. Key industries include hardware and tool manufacturing, cutlery manufacturing, industrial ceramics, furniture and wood products, wire and cable, tiles and flooring,

3.0 Project Description & Motives

The project created a new a two-lane, two-mile long access road (Constitution Avenue) between NYS Route 411 (West State Street) in Allegany, New York and I-86 (via Wayne Street) in Olean, New York. The project also included water and sewer lines to serve the development site, as well as a recreation trail.

The purpose of this project was to provide access to a 152-acre industrial and retail development site and to support job growth in the community, both because Olean was already a major employment center and the site is adjacent to a well established retail and services hub. Constitution Avenue allowed this existing activity hub to expand without interrupting surrounding residential and recreation areas.

As originally planned, the project would have cost $1.7 million, comprised of $990,000 in local funding, $600,000 from the State of New York, and $120,000 from the Appalachian Regional Commission (ARC). The final cost of the completed project was $3 million, with $990,000 in local funds as originally planned, $750,000 from the State, $1.25 million in Federal funds and a contribution from the ARC of $90,000.

4.0 Project Impacts

4.1 Transportation Impacts

4.2 Demographic, Economic & Land Use Impacts

The completion of Constitution Avenue and subsequent development of the 152-acre parcel helped revitalize the area with new industrial and commercial development. The Cattaraugus Empire Zone Corporation leveraged the increased interest in the area with a highly successful marketing effort.

At least 11 firms have been attracted to the new site given access as a result of the transportation investment, including two manufacturers with 50 employees located in a 12,000 square foot building, a BJ's Wholesale Club, and several commercial and retail projects. The project supports seven other businesses in Olean, including auto services, a restaurant, offices, a print shop, an electrical wholesaler and a chemical manufacturer. These firms brought approximately 100 direct jobs with $2.5 million in wages, indirectly supporting 95 additional jobs (and $987,500 in personal income) according to a post-project study conducted by ARC. The ARC study also found that the $3 million project leveraged an additional $5 million in private investment.

5.0 Non-Transportation Factors

Project proponents hoped to attract more industrial development to the area. Some officials feel stronger land use controls could have limited retail development in favor of additional industrial space.

6.0 Resources

6.1 Citations

Evaluation of the Appalachian Regional Commission's Infrastructure and Public Works Program Projects, June 2000, The Brandow Company and Economic Development Research Group.

6.2 Interviews

Organization

Footnotes