Project: US-400 Parsons Bypass

1.0 Synopsis

Parsons Bypass re-routes US 400 from Parson's downtown through farmland north of downtown. The bypass completes an upgraded "Super Two" route between Parsons and Wichita, providing a high-speed alternative to Parson's Main Street for vehicles using the US 400 corridor. US 400 connects the City of Parsons to Interstate 44 in Missouri to the East, and Wichita, Western Kansas, and Colorado to the West. Parsons tourism and retail shopping activity has increased in downtown area and several businesses have located to the bypass, north of the city, to capitalize on its ease of access. Over 1,400 jobs have been attracted to Parsons due in part to a new cluster of business activity around the intersection of US-400 and US 59. This has been an important economic contribution to the city since the closure of the Kansas Army Ammunition Plant and the damage to Parsons caused by an F3 tornado in 2000.

2.0 Background

2.1 Location & Transportation Connections

Parsons is located in the southeastern corner of Kansas, in Labette County. One hundred twenty eight miles East of Wichita, and located at the intersection of U.S. 400 and US 59. The Tri-City public airport which serves Parsons, Neodesha and Independence is located 11 miles to the west. Union Pacific purchased the Katy (Missouri - Kansas - Texas) railroad line (Parsons, KS to Oklahoma City) in 1988, which passes through Parsons. The nearest interstate I-44 is located in the southeastern corner of Kansas which borders Missouri and is roughly 50 miles from the City of Parsons.

2.2 Community Character & Project Context

Despite being the second largest city in southeastern Kansas, with an estimated population of 11,237 in 2006, Parsons is a rural area. The population has gradually declined since 1990 when the population was 14,031. Recent events contributed to population and economic decline. In 2003, an F3 tornado went through the center of Parsons, damaging 800 hundred homes, 120 businesses, and hundreds of vehicles. In 2005, the United State Department of Defense put the Kansas Army Ammunition Plant located in Parsons on the Defense Base Closure and Realignment Commission (BRAC) list and it is now closed. The Union Pacific Railroad also relocated their corporate offices, removing 400 jobs from the local economy. An estimated 1,000 residents left Parsons between 1990 and 1999. Parsons however, has been experiencing recent growth within the last few years with the addition of several businesses that have located near the bypass has stimulated the local economy and lowered the unemployment rate in 2007 to 4%, which was below the national rate of 4.6%.

There are two museums and an extensive park system in Parsons. The downtown was recently rebuilt, and now offers new retail options and hosts a variety of events that attract local residents as well as visitors. Parsons employment base is highly concentrated in government, service, manufacturing, and retail trade industries with a total of 10,725 jobs in 2006.

Parsons is showing signs of recovery and growth. Parsons had an job growth rate of 85% between 1997 and 2007 (3,789 to 7,020 jobs), which is higher than the state of Kansas (5%) or the decline in Labette county (-3%). Despite a decrease in business sales, other economic indicators such as per capita income and property values have increased from 1999 to 2006.

3.0 Project Description & Motives

The $27.5 million (2004$) Parsons bypass, completed in 2004, was constructed to improve safety in the downtown area, reduce congestion, and stimulate economic growth (both industrial and tourism-related). Before the bypass, freight trucks traveling East and West via US 400 passed through the downtown, causing safety concerns, especially because the main street was adjacent to a Middle School. Freight traffic from several of Parsons industrial parks also travelled through the city's central business district, posing danger to pedestrians, causing congestion, and increasing maintenance costs for streets not designed to handle such traffic. Before the bypass, it was difficult to transport goods from industrial parks to the highway because of congestion. Accordingly, a request was made to KDOT for a bypass in order to reduce the congestion and improve access to U.S. 400.

4.0 Project Impacts

4.1 Transportation Impacts

4.2 Demographic, Economic & Land Use Impacts

The removal of commercial traffic from downtown led to a resurgence in economic activity. In 2006, Parsons was named a Great American Main Street Award winner by the National Trust for Historic Preservation for its successful efforts in revitalizing its downtown area through historic preservation. Parsons was one of only five cities to receive the 2006 award. The minimal loss of local businesses has been offset by new business that has located north of Parsons near the bypass, creating a cluster of business activity and development on land previously devoted to agriculture.

In 2007, neighboring Coffeyville had a major flood which redirected travelers to Parsons. However, since the flood, the number of hotel visitors has not declined which has been attributed to the increase in business activity and commerce according to the tourism department for the City of Parsons. Hotel tax collections have increased 25% since 2008 indicating that visitors are increasingly choosing Parsons as their destination. Hotels in the area are increasing their focus on the traveling customer and revenues have increased by 22%.

New development has quickly concentrated around the bypass because of its ease of access and time savings. Several businesses have located in Parsons as a direct result of the bypass. The types of businesses that have located to the bypass area include manufacturing, medical, industrial, retail, transportation, financial and hospitality.

The average annual net job gain before construction (1999) was 126 jobs per year. After construction (2004), the average annual net job gain was 418 jobs per year. Overall, the number of jobs added in Parsons due to the bypass is estimated to be 1,400.

5.0 Non-Transportation Factors

The devastating effects of the tornado through the center of Parsons and the closure of the Army Munitions plant noticeably affected the local economy and likely attenuated the economic impacts of the bypass. The redevelopment and re-vitalization of the downtown area can be credited with attracting additional retail activity and tourism from the regional area. The city provided development incentives to encourage manufacturers to locate near the US 400 and US-59 interchange.

6.0 Resources

6.1 Citations

1. Transportation Infrastructure Investment and the Kansas Economy. High Street Consulting. Prepared for KDOT. Nov. 2008
2. http://www.parsonsks.com/egov/docs/1166050159_24932.pdf
3. www.ksdot.org/bureaus/offTransInfo/TRANSLIN/March/march03.pdf

6.2 Interviews

Organization

City of Parsons

City of Parsons

Ray Products

Old Dominion

Trucking Parsons

Chamber of Commerce

Grandview Products

Footnotes

Case Study Developed by Economic Development Research Group, Inc.