Project: Interstate 43

1.0 Synopsis

Interstate 43 in Wisconsin runs north to south and is approximately 190 miles long. Originating in Green Bay, I-43 connects with US 41 before running south to Milwaukee, and then extends southwest to its southern terminus in Beloit, Wisconsin where it connects with I-90 and I-39 close to the Illinois border. Construction on I-43 started in 1963 and was completed in 1981. Upgrades occurred between Milwaukee and Sheboygan with a new alignment positioned between Sheboygan and Green Bay. I-43 has been a catalyst for development in several surrounding counties. Major retail and tourist developments have located along the corridor. In Brown County, over $2 billion dollars has been invested in the I-43 Business Center, where 200 acres are still available for future development. Industrial parks have also been developed in Manitowoc and Sheboygan counties. An estimated 500 jobs were created as a result of the project.

2.0 Background

2.1 Location & Transportation Connections

The case study area covers the original section of I-43 (120 miles), completed in 1981, from Green Bay to Milwaukee which passes through the counties of Brown, Manitowoc, Sheboygan, Ozaukee and Milwaukee. Major connections to I-43 include I-794, I-894, I-94, and US 41 in Milwaukee, US 10 in Green Bay and US 151 in Manitowoc.

2.2 Community Character & Project Context

Between Green Bay and Milwaukee, I-43 passes through areas that are less densely developed. Population growth between 1960 and 2000 in the five-county area grew from 1,361,300 to 1,445,000, a compounded average annual growth rate of 0.15 %, which is lower than the population growth at the state level (0.77%). Employment in the five counties that I-43 passes through was almost 700,200 in 1970, increasing to approximately 973,700 in 2000. Employment growth in the corridor (1.1 %) was lower than the statewide employment growth (1.9 %) over a 30-year period (1970-2000), although Brown and Ozaukee counties experienced strong growth. Most of the employment along the corridor has occurred in Milwaukee, which has the largest population and workforce in Wisconsin.

Manufacturing is the leading industry in the five-county study area, with the exception of Milwaukee County, where health care and social assistance are the main industries, followed by manufacturing. Although manufacturing remains strong in the five-county area (20% of employment in 1990; down to 18% in 2000), the service sector has been growing and expanding over the last two decades (27 % of employment in 1990; up to 34% in 2000).

3.0 Project Description & Motives

When the Eisenhower Interstate system was created, only two interstate routes, I-90 and I-94, were constructed in Wisconsin, linking Madison and Milwaukee to Chicago and Minneapolis. The Wisconsin Transportation Commission lobbied for a route connecting Green Bay, Wisconsin's third largest city, to the Interstate system. Initial attempts were declined, including the proposal of locating the facility between routes US 141 and US 41. The federal government finally approved the highway connecting Milwaukee to Green Bay which followed US 141. The project cost was $222.4 million (year-of-expenditure dollars) and the construction period was from 1963 to 1981.

4.0 Project Impacts

4.1 Transportation Impacts

4.2 Demographic, Economic & Land Use Impacts

The FHWA post-economic study reported that most of the economic development since the completion of the interstate has occurred in the northern portion of the corridor. Specific impacts have taken place in the following counties:

Brown County: the city of Green Bay has experienced significant increases in the number of business start-ups, expansions, and relocations. I-43 has been identified as being a beneficial link to manufacturing, particularly the paper industry, in combination with other transportation infrastructure projects, in the area. The FHWA study also reported that a major beef processor had expanded their business in the area because I-43 provided faster access to the Chicago consumer market. Land use consists of mostly residential development in the vicinity of most of the interchanges in Brown County. However, industrial parks are becoming more prevalent near interchanges as well. The I-43 Business Center is an 823-acre business park located at the interchange of I-43 and County Trunk Highway V. As of June 2008, less than 200 acres remained undeveloped. The FHWA post-study indicated that about $2 billion dollars of new construction had occurred at this site within the past decade. The City of Green Bay Economic Development office reported almost $17 million in additional development at this site in 2007, including a sports medicine complex, restaurant, manufacturing (48,000 sq.ft. expansion), and financial services (8,000 sq.ft.).

Manitowoc County: Interchanges around I-43 in this county have experienced significant development. According to staff from the City of Manitowoc, development in the area did not occur until about 25 years after the construction of the interstate highway was completed. Yet, the interchange with US 151 in the City of Manitowoc is now one of the most developable business sites. According to staff at both the Bay Lakes Regional Commission and the City of Manitowoc, much of the development at this location can be attributed to the highway which has resulted in two specific developments: The Technology and Enterprise Campus and the Harbor Town Center. The I-43 Technology and Enterprise Campus, located in the northwest quadrant of this interchange, is a 370-acre facility, with about 240 acres remaining for development. Some of the existing businesses include light manufacturing businesses, from metal stamping to graphic art products. This site relies heavily on accessibility and visibility from I-43 which attracted many of the businesses to this location. Retail development in the area includes the Harbor Town Center (423,000 sq.ft.), built in 2004 and big box retailers such as Super Wal-Mart, Kohl's, Lowes and other national retailers. Back in 2002, the fair market value of the land where the Harbor Town Center development is located was estimated to be $363,000. A 2008 valuation puts the fair market value of the Harbor Town Center at $38 million.

Industrial parks such as Woodland Drive Industrial Park (259 acres, 41 acres currently developed), located in Two Rivers and only five minutes away from I-43 on SR 310. There has not been much development at other interchanges in Manitowoc County, besides some highway-oriented development (e.g., gas stations, restaurants) typical of this type of facility.

Sheboygan County: The FHWA post-study found that I-43 had a significant impact in the growth of commercial real estate, retail, and hospitality industries. Some of the most notable development has occurred at the interchange with SR 28. The Deer Trace Shopping Center opened in 2001 (266,000 sq.ft.) and includes big box retailers such as Home Depot, Target, and recently a Best Buy (2007). Other businesses include a Wal-Mart Super Center, and other highway-oriented businesses on the southeast quadrant (gas station, hotel, fast food). The Sheboygan Business Center is also located in the vicinity of the SR 28 interchange, with about 66 acres of undeveloped land out of almost 328 acres. In 2004, a major insurance company undertook an expansion project to its headquarters in Sheboygan, valued at $39 million, adding 262,000 square feet of new office space.

The Kohler Company has been investing in the hospitality industry for over 20 years within its Hospitality and Real Estate Business group. Tourism expenditure in Sheboygan County increased from $110.3 million in 1994 to $271.4 million in 2004, for an increase of almost 150% over the 10-year period, most of which occurred in 1999-2000. Tourism attractions in Sheboygan County include fishing, Lake Michigan waterfront activities (including the Blue Harbor Resort and Conference Center, opened in 2004), and golfing. The Village of Kohler is home to the Whistling Straits golf course, which hosted a PGA tournament in 2004 that attracted more than 60,000 visitors, many of which relied on I-43 to access the area. Other PGA tournaments are scheduled for 2010 and 2015 and the Ryder Cup is scheduled for 2020. The Kohler Company has requested the construction of an event-only interchange to provide access to Whistling Straits pending approval from FHWA.

Ozaukee and Milwaukee: I-43 was not considered as a factor contributing to any new economic development in the Milwaukee metropolitan area, since most of the interchanges were already developed.

Based on an analysis of a comparison corridor in Wisconsin (US 41) and local interviews, the highway contributed directly to 500 jobs in the study area.

5.0 Non-Transportation Factors

The City of Green Bay developed incentives to attract businesses into its I-43 Business Center, such as land prices below market rate, tax credits, and lending programs, which is credited in attracting several businesses to the area. In Manitowoc, 1,100 jobs were lost when the company Mirro decided to relocate out of the country in 2003. This departure led to the formation of the Economic Development Corporation of Manitowoc County, which has created incentives (e.g., development zone tax credits) to attract businesses to the area.

Smart growth legislation passed in 1999 requiring all communities in Wisconsin to develop and adopt comprehensive plans by 2010, and future development and land uses must be consistent with these plans. Three of the nine components of the plans include transportation, economic development, and land use considerations. Many (if not all) of the communities along the corridor have gone through this process over the last few years. This should have an impact on future development.

In addition, communities in Wisconsin are allowed to create Tax Increment Financing (TIF) districts for economic development (up to 12% of the community's assessed value). TIF encourages development in blighted areas, and bond proceeds from TIF districts can be used for infrastructure improvement, land acquisition, and development incentives. These districts have been created in the vicinity of I-43, which may also have influenced some of the development. Specifically, the City of Manitowoc invested about $9 million in TIF proceeds for infrastructure at the Harbor Town Center development.

6.0 Resources

6.1 Citations

1. Federal Highway Administration, Economic Development History of Interstate-43 Corridor.  Available at http://www.fhwa.dot.gov/planning/econdev/i43wi.htm
2. City of Green Bay Economic Development, http://www.ci.green-bay.wi.us/EconomicDevelopment/aboutus.html
3. David Merriman, Mark Skidmore, Russ Kashian, Do Wisconsin Tax Increment Finance Districts Stimulate Growth in Real Estate Values?, October 2007.
4. Economic Development Corporation of Manitowoc County, http://www.edcmc.org/industrial-parks-manitowoc.html
5. Wisconsin Department of Revenue, http://www.dor.state.wi.us
6. Wisconsin Department of Tourism, http://industry.travelwisconsin.com
7. Wisconsin Department of Workforce Development, http://www.dwd.state.wi.us
8. Wisconsin Realtors Association, http://www.wra.org

6.2 Interviews

Organizations

Wisconsin Department of Transportation

Formerly of Federal Highway Administration

Brown County

Bay Lakes Regional Planning Commission/Sheboygan MPO

City of Manitowoc

Footnotes

Case Study Developed by Cambridge Systematics, Inc.