Corridor B is a highway in the U.S. states of North Carolina, Tennessee, Virginia, Kentucky, and Ohio. It is part of the Appalachian Development Highway System, and generally follows U.S. Route 23 from Interstate 26 and Interstate 40.

Measure	Pre project	Post project	Change	% Change
Personal Income Per Capita	0	0	0	N/A
Economic Distress	0	0	0	N/A
Number of Jobs	0	0	0	N/A
Business Sales (in $M's)	0	0	0	N/A
Tax Revenue (in $M's)	0	0	0	N/A
Population	0	0	0	N/A
Property Value (median house value)	0	0	0	N/A
Density (ppl/sq mi)	0	0	0	N/A

Measure	Pre project	Post project	Change	% Change
Personal Income Per Capita	19,437	34,726	15,289	0.79%
Economic Distress	0.77	0.91	0.15	0.19%
Number of Jobs	179,828	341,906	162,078	0.90%
Business Sales (in $M's)	0	40,014	0	N/A
Tax Revenue (in $M's)	0	0	0	N/A
Population	378,425	528,001	149,576	0.40%
Property Value (median house value)	0	143,788	0	N/A
Density (ppl/sq mi)	186.34	259.99	73.65	0.40%

Measure	Pre project	Post project	Change	% Change
Personal Income Per Capita	19,378	37,227	17,849	0.92%
Economic Distress	0	1.06	1.06	N/A
Number of Jobs	4,253,440	9,042,050	4,788,610	1.13%
Business Sales (in $M's)	0	1,346,170	0	N/A
Tax Revenue (in $M's)	0	0	0	N/A
Population	9,036,130	14,944,400	5,908,270	0.65%
Property Value (median house value)	0	141,059	0	N/A
Density (ppl/sq mi)	100.48	166.18	65.70	0.65%

Measure	Direct	Indirect	Total
Jobs	4,605.00	3,499.00	8,104.00
Income (in $M's)	204.11	155.09	359.20
Output (in $M's)	600.41	456.21	1,056.62

Corridor B

1.0 Synopsis

Corridor B is a 305.5-mile segment of the Appalachian Development Highway System and travels through five states from North Carolina to Ohio. This case study focuses on the 88-mile portion of the corridor from Asheville, NC to Tri-Cities area of Tennessee (Johnson City, Kingsport and Bristol), passing through the Blue Ridge Mountains. This portion of highway was constructed in the late 1960s as a two-lane highway, ultimately becoming a continuous four-lane interstate grade highway by 2003. Over the years, the highway improvements led to re-designations, from US highways to interstate connectors to the current Future I-26 designation. The economic and transportation impacts of the highway have been limited due to roadblocks with completing highway connections along the corridor north of the Tennessee Impacts to date have been improved connections between major centers, and improved access to the Port of Charleston. Based on insights provided through interviews and the evaluation of increased economic activity due to the improved access, Corridor B is estimated to create 8,100 jobs.

2.0 Background

2.1 Location & Transportation Connections

As part of the Appalachian Development Highway System (ADHS), Corridor B spans 305.5 miles across five states, from Ashville, NC to Portsmouth, OH. This analysis focuses on the 88.4-mile corridor improvements located along US 19 and US 23, in North Carolina and Tennessee (31.0 and 57.4 miles, respectively). The improvements upgraded the US-designated highway to interstate standards between Kingsport, TN, at the north end, and Asheville, NC, in the south. This segment of highway passes through Buncombe and Madison Counties in North Carolina; and Sullivan, Unicoi, and Washington Counties in Tennessee.

In North Carolina, the route begins at the I-240 intersection of US 19 and US 23 in Asheville and heads north through Mt. Pisgah National Forest to the Tennessee state line. In Tennessee, the route runs north through Cherokee National Forest and bisects Johnson City. North of Johnson City, the highway intersects with Interstate81 and travels on to Kingsport and the Virginia state line.

2.2 Community Character & Project Context

Spanning both rural and mid-sized urban communities, the Corridor connects the Tri-Cities in Tennessee to Asheville in North Carolina, while crossing rugged mountainous terrain and the Cherokee and Pisgah National Forests. Over a third (approximately 31 miles) lies within these two National Forests.

In Tennessee, the Tri-Cities metropolitan statistical area (MSA) includes Bristol, Kingsport, and Johnson City, and is located within Sullivan and Washington Counties. Between 1969 and 2006, the population of the five-county area grew 40% from 378,400 to 528,000. Employment grew more rapidly, from 179,800 to 341,900 (90%) reflecting national trends associated with the greater participation of women in the workplace, second jobs, and later retirement. The population and employment growth was led by the urbanized counties of Sullivan and Washington in Tennessee, and Buncombe in North Carolina.

3.0 Project Description & Motives

The Appalachian Regional Highway System (ADHS) was designed to promote economic and social development in the Appalachian Region. Construction of various ADHS links, including Corridor B, began in the late 1960s.

Winding through the Blue Ridge Mountains, U.S. 23 and U.S. 19 was upgraded and expanded to meet interstate standards, and these highways have now been designated future Interstate 26 after completion of a 9.0 mile segment from Mars Hill, NC to the Tennessee state line in 2003. Spanning approximately 35 years, road construction in NC began in 1968, and covered 31.0 miles. Construction on the 57.4 miles of roadway in Tennessee began in 1971 and concluded in 1995.

In Tennessee, the improvements consisted of several projects that are broadly categorized into four phases. The first linked Kingsport to the outskirts of Johnson City. The second went through Johnson City. The third went from the southeast edge of Johnson City to Erwin. The fourth segment, built between1984-1995, extended from Erwin, over the mountains, to the North Carolina state line. The first three segments, from the VA state line through Johnson City, were originally designated as I-181, since they effectively served as I-81spurs. Subsequent to the completion of the North Carolina section (see below), the I-81 spurs were reclassified as I-26. The last 16-mile Tennessee segment, officially designated as the Appalachian Scenic Highway was dedicated in 1995 as the James H. Quillen Parkway.

The US23/US19 improvements in North Carolina began in the late 1960s from the I-240 interchange in Asheville to Mars Hill. Many sections of the North Carolina corridor required replacement of at-grade intersections with grade-separated interchanges and limited access designs. The second phase, infamously dubbed the "Missing Link", began in 1996 and completed in 2003, went from Mars Hill over the mountains to the Tennessee state line. This last 9-mile North Carolina section required an entirely new alignment at a cost of $230 million.1

Comprised of numerous engineering, and right-of-way (ROW) acquisition, and construction phases over approximately 35 years and between two states, the total project cost was not readily available and could not be ascertained from available documents.

4.0 Project Impacts

4.1 Transportation Impacts

4.2 Demographic, Economic & Land Use Impacts

The 1998 ADHS study evaluated the economic development implications of the completed ADHS road sections. Specifically, the study evaluated how the transport cost savings (i.e., time, vehicle operating cost, and accidents) affected the Appalachian Region in terms of industry competitiveness, retail expenditures, and tourism. The study found that the completed Tennessee/North Carolina sections of Corridor B saved road users an estimated $222.4 million annually in 1995, and with savings forecast to rise to $664.3 million annually by the year 2024.

Previously, the regional population grew 26% (from 378,400 to 478,600) and employment grew 65% (from 179,800 to 296,400) between the start of Corridor B improvements in 1969 to the 1995 benchmark year. Since then, population growth and associated development has continued. While most all counties have seen population and employment growth between the various years, the development has varied notably, as discussed below in relation to the Corridor improvements. Further, the connectivity benefits associated with the road improvement were not fully recognized since the 9-mile North Carolina segment between Mars Hill and the Tennessee state line had not been completed.

The corridor underwent significant economic development over the past 40 years. However, these changes have not been uniform due to the varying urban and rural regions through which the Corridor passes. Additionally, the urban growth cannot be attributed to the highway improvements because there is not interstate connection north of the Tri-Cities.

In Asheville, sectors such as aviation/aerospace, knowledge-based communications/IT, green industry and environmental/climate-related industries, as well as life sciences and natural products manufacturing, have established industry clusters with future growth potential. While Asheville residential and commercial land prices (historically some of the highest in the state) were not notably affected by the Corridor, the corridor improvement did facilitate regional growth outside of the urban core.

Such suburban growth outside of Asheville led to the recent (2009) opening of a Lowes and Wal-Mart big-box store in Weaverville, NC (Buncombe County). Located approximately ten-miles north of the I-240 loop, the two big-box store openings exemplify the increasing regional demand for retail outlets associated with residential growth. Local sentiment indicates that I-26 facilitated this residential growth.

Continuing north into Madison County, NC, the rural characteristics of the mountainous region prevail, with little signs of economic development. With only 3 interchanges, local perception suggests that the Corridor does not go "through" Madison County; rather it goes "over" it. Open only since August 2003, no notable development has occurred in the region, although development of a North Carolina welcome center is proceeding and interchange service stations are envisioned. Such limited growth potential is unsurprising given that the Mt. Pisgah National Forest comprises a significant portion of the County.

Similarly, the rural Unicoi County across the state line in Tennessee also includes a large wilderness area (Cherokee National Forest), which covers approximately 15-miles of the Corridor. Nonetheless, big-box stores did open within the Unicoi city limits subsequent to the Tennessee-segment completion. A welcome center is also planned for Tennessee.

Currently, the Tri-Cities manufacturing clusters include appliances, engine equipment, motor vehicle related, and nondurable industry machinery. Additionally, growth sectors include logistics, distribution and warehousing, health services and pharmaceutical, and information technology/services. The early I-181 connector between Kingsport and Johnson City facilitated regional commutes which helped regional growth. However, I-81 continues be the dominate transportation factor spurring growth since it connects the region to the northeast and southern U.S., despite the improved access to the Port of Charleston. With the estimated amount of savings to residents and businesses, including additional market access and mobility, Corridor B was estimated to create 8,100 total jobs within the 88 mile segment covered by this study.

5.0 Non-Transportation Factors

The non-transportation factors associated with the rural, mountainous character continue to constrain regional economic development. The corridor's central region spans two national forests (about a third of the corridor distance), which further constrains land and infrastructure (i.e., water and sewer) development. Given the rural, mountainous, and forested characteristics of the region, economic development will primarily be limited to the Corridor's urban termini.

6.0 Resources

6.1 Citations

http://en.wikipedia.org/wiki/Appalachian_Development_Highway_System
http://www.aaroads.com/arc/
http://www.arc.gov/index.do?nodeId=1856
http://www.arc.gov/images/newsandevents/publications/2007_adhs_cost-to-complete/2007_cost_tennessee.pdf
http://www.arc.gov/images/newsandevents/publications/2007_adhs_cost-to-complete/2007_cost_northcarolina.pdf
http://www.ashevillechamber.org/index.asp
http://www.alliancetnva.com/index.php
http://www.gribblenation.com/ncpics/i-26/
http://www.interstate-guide.com/i-026.html
http://www.jcmpo.org/i26.htm
“Economic Impact of the Appalachian Development Highway System”; Wilbur Smith Associates, 1998
“Economic Impact Study of Completing the Appalachian Development Highway System”; Cambridge Systematics, Inc, 2008
“Status of the Appalachian Development Highway System”; Appalachian Regional Commission; January, 2009

6.2 Interviews

Organizations

TDOT, Region 1

NETWORKS-Sullivan Partnership

NCDOT, Division 13

Land-of-Sky Regional Council

Asheville Area Chamber of Commerce

The Regional Alliance for Econ, Development

Footnotes

Case Study Developed by Wilbur Smith Associates

Project: Corridor B

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