Greenway corridors provide a variety of amenities, such as attractive views, open space preservation, and convenient recreation opportunities. People value these amenities. This can be reflected in increased real property values and increased marketability for property located near open space. Developers also recognize these values and incorporate open space into planning, design, and marketing new and redeveloped properties. Natural open space and trails are prime attractions for potential home buyers in 1995. According to research conducted by American Lives, Inc. for the real estate industry, 77.7 per cent of all home buyers and shoppers in the study rated natural open space as either “essential” or “very important” in planned communities. Walking and bicycling paths ranked third. A community design which offers quiet and low traffic was the top ranked feature. A research spokesperson commented that consumers are increasingly putting a higher premium on interaction with the environment through inclusion of natural, open space and nature paths. The findings of this most recent study differ greatly from the 1980’s preferences, which included tennis courts, swimming pools, and golf courses. (San Francisco Chronicle, January 8, 1995) Increased Property Values - Quantified The effect on property values of a location near a park or open space has been the subject of several studies. Statistical analyses have been a common method of attempting to measure this effect. These analyses attempt to isolate the effect of open space from other variables which can affect property values, such as age, square footage, and condition of homes. Isolating the effect of open space can be difficult and results have been varied. Nevertheless, many studies have revealed increases in property values in instances where the property is located near or adjacent to open spaces. Most studies have addressed traditional parks or greenbelts (large open space areas), though a few studies are available for greenways. The amenity influence of greenbelt land on property values also applies to privately held greenbelt land, according to a study of the Salem metropolitan area in Oregon. In this case, the greenbelt was comprised of rural farmland. Greenbelt zoning had been applied to this prime farmland beginning in 1974 in an effort to contain urban sprawl and preserve farmland. The study found that urban land adjacent to the greenbelt was worth approximately $1,200 more per acre than urban land 1,000 feet away from the greenbelt boundary, all other things being equal. However, rural land values within the restrictive zoning actually decreased in value by $1,700 per acre (Nelson, 1986).   A recent study of market appreciation for clustered housing with permanently-protected open space in Amherst and Concord, Massachusetts, found that clustered housing with open space appreciated at a higher rate than conventionally-designed subdivisions. Appreciation was measured as the percent increase in openmarket sales price. The study compared one clustered development and one conventional subdivision in each community. The clustered homes studied in Amherst appreciated at an average annual rate of 22%, as compared to an increase of 19.5% for the more conventional subdivision. This translated into a difference in average selling price of $17,100 in 1989 between the two developments. In both Amherst and Concord, the homes in the clustered developments yielded owners a higher rate of return, even though the conventional subdivisions had considerably larger lot sizes (Lacy, 1990).      An analysis of property surrounding four parks in Worcester, Massachusetts, showed a house located 20 feet from a park sold for $2,675 (1982 dollars) more than a similar house located 2,000 feet away (More, Stevens, and Allen, 1982).      An increase in property values generally results in increased property tax revenues for local governments. Many arguments made for park and open space investment claim these acquisitions pay for themselves in a short period of time, due in part to increased property tax revenues from higher values of nearby property. A point to remember, however, is that many jurisdiction’s assessments of property values often lag behind market value. Furthermore, in those states which have passed legislation limiting real estate tax increases, such as California’s Proposition 13, property tax revenues also lag behind increases in market value.      A land developer from Front Royal, Virginia, donated a 50 foot wide seven-mile easement for the Big Blue Trail in northern Virginia after volunteers from the Potomac Appalachian Club approached him to provide a critical trail link along the perimeter of his secondhome subdivision. The developer recognized the amenity value of the trail and advertised that the trail would cross approximately 50 parcels. All tracts were sold within four months (American Hiking Society, 1990). n  Thirty-five acres was set aside as a protected corridor through a 71-lot subdivision for approximately one-half mile of the Ice Age Trail in Wisconsin. The Ice Age Trail Foundation had purchased the parcel when the land became available for sale and was being considered for development. Later the Foundation sold the parcel to a subdivision developer, after placing an easement on the trail corridor. The developer now touts the easy access to the Ice Age Economic Impacts of Protecting Rivers, Trails, and Greenway Corridors      Local ordinances may also provide incentives for developers to set aside open space and habitat areas. In Lee County, Florida an ordinance gives developers incentives to preserve critical habitat. In return for preserving habitat areas, developers are permitted to transfer development rights from the preserved area to other portions of the parcel. Habitat buffer areas can also fulfill applicable open space requirements and can be credited toward regional park impact fees.           Document developers’ use of open space in designing and marketing their properties. Where have developers incorporated open space into their design plans? Have they provided access (e.g. a bridge, spur trail, undercrossing) from developments to a nearby greenway? Ask them about their perception of the effect of open space on prices, sales or rental time, and the overall market response to their product. Collect examples where proximity to open space has been used in sales advertising. Check real estate listings, magazines, weeklies, and promotional announcements for descriptions of open space amenities. Document property sale price increases before and after the greenway was established. Obtain sales records for similar properties in the area from at least five years before the greenway was established to five years after. Or, you might contact real estate appraisers for information on property value increases. Real estate brokers may be able to provide general statements on property value trends. After correcting for housing inflation (see Appendix A), compare trends in nearby property values over a ten year period. You may also need to adjust for local housing inflation, which may be higher than the U. S. city average listed in Appendix A. Contact your local regional office of the U. S. Department of Labor and Statistics for more detailed consumer price index information for your community.      Outdoor Recreation, a Spending Priority Leisure is often considered to be discretionary, or free time, away from work and other responsibilities, where participants choose and control their activities. Leisure activities can vary from mountain climbing, walking for health, or watching a football game on television. Outdoor recreation is a major component of leisure, usually included in leisure spending figures unless reported otherwise. Outdoor recreation and leisure expenditures can account for a substantial part of people’s discretionary spending. People spend more on leisure and recreation than the U.S. Government spends on national defense or housing construction.      In 1988, recreation and leisure was the third largest industry in California. More than $30 billion per year is spent by Californians on recreation and leisure. This amounts to approximately 12 percent, or one of every eight dollars, of total personal consumption expenditures in the state (California Department of Parks and Recreation, 1988). n One study estimated that $620 million is spent annually by California residents for urban recreation activities (playing sports, visiting parks, jogging, bicycle riding). This generates an estimated $400 million in personal income and 22,800 jobs (Loomis, 1989). How much outdoor recreation and leisure is attributable to the activities pursued along greenways, rivers and trails? Many outdoor recreation activities can be observed along a greenway. Patterns vary significantly due to factors such as proximity, accessibility, weather, recreation opportunities, income, and educational levels. Greenways are likely to provide increased opportunities for the more popular outdoor recreation activites. According to Lifestyle Market Analysts, a new report by National Demographics and Lifestyles Inc., a survey of households in 212 metropolitan areas revealed overall participation rates for several related activities: - 40.4% Walk for health - 32.8% Pursue physical fitness/exercise - 14.9% Bicycle - 13.75% Boat or sail - 12.4% Run or jog Spending by Local Residents You can define your local economy as the area for which you want to quantify the recreation activity and expenditures related to your greenway project. A greenway project can attract residents not only to the greenway, but also to nearby businesses, and encourage residents to purchase recreation-related equipment and services. These greenway-related expenditures help support the local economy through generation of employment and income. Expenditures by Residents           Specifically, local residents who use the greenway may spend money to get to and from the site, on supplies and equipment to pursue their recreation experience, at on-site concessions and events, and nearby attractions. The magnitude of the impact of these expenditures depends upon the boundary and character of your local economy and the level of spending by local residents. If a new resource is created which attracts visitors, or non-residents, then outside dollars may be brought into your local economy. River, trail and greenway resources which attract visitors can stimulate economic activity and create new jobs and income. These non-resident expenditures are discussed in the Tourism section of the Resource Book.      Trends and Expenditures by Activity The following discussion provides information on trends associated with uses of greenways and provides evidence where spending associated with greenway- related activities has been quantified. Activities include wildlife-related recreation, river boating, trail-related recreation, and traditional park pursuits. Fish and wildlife-related recreation Fishing Hunting Birdwatching Wildlife photography River boating Rafting Rowing Kayaking Canoeing Motorboating Sailing Sailboarding Houseboating Jet skiing      As reported by the U.S. Fish and Wildlife Service, 30 percent of the total national wildlife-related recreation expenditures ($18.1 billion in 1991) was related to wildlife viewing and photography (U.S. Fish and Wildlife Service, 1993). The typical birdwatcher spends $13 per day, with almost half spent on food and beverages, one-fourth on gas and oil, and most of the remainder on lodging. Spending by birdwatchers contributed a total of $27 million in wages and business income to California’s economy in 1987. A total of nearly 2,000 California jobs are supported by birdwatchers (Loomis and Unkel, 1989). Interest in wildlife viewing should continue to increase over the next decade in areas where urbanization, education, and income levels continue to rise. River Boating. Recreational river boating is one of the nation’s most popular outdoor activities and includes rafting, rowing, kayaking, canoeing, motorboating, and more recently, jetskiing. In the last two decades a dramatic growth in whitewater boating has been evidenced (Shelby and Lime, 1986). Use of wild and scenic rivers in national forests more than doubled in the six years between 1976 and 1984 (Feuchter, 1984).           Trail-related Recreation. Much of the population enjoys trail-related recreation such as: walking for pleasure and health, jogging, hiking, volksmarching, bicyling, rollerskating, in-line skating, horseback riding, and cross-country skiing. Research has shown walking and hiking have played a significant role in the nationwide growth in outdoor recreation. There are over 26 million day hikers in the U.S., and over half the American public says they walk for pleasure (Spitzer, 1988). Also, running has increased significantly since the early 1960’s. According to a national recreation survey conducted for 1982-1983, over 25 percent of the U.S. population ran for conditioning during that time period (Van Horne, et al., 1985).      Bicycling attracts people of all ages and interest in this activity is retained from childhood into later years. With the aging of the U.S. population, bicycling will likely retain its popularity as a “lifetime” activity. In the United States, the rate of participation in bicycling tripled since the early 1960s. By the end of 1993, there were more than 100 million bicyclists in the United States. This represents an increase of over 33 percent in the last ten years (Bicycle Federation of America, 1994). Bicycles are used for commuting to work as well as pleasure and fitness. There were 2.7 million bicycle commuters in the U.S. in 1987, more than double the number in 1982. All-terrain bicycle use, or mountain bicycling has recently emerged as a very popular form of bicycling. In the United States, mountain bicycle ownership increased dramatically from 200,000 in 1983 (Hecker, 1989) to more than 25 million in 1992, up 20 percent from 1991 (Bicycle Institute of America). The communities of Marin County, California, Moab, Utah, and Durango, Colorado all vie for the title of “mountain bicycling capital of the U.S.”, according to a recent article in the Independent Journal (Western Trail and Bikeway News, 1994).      In-line skating has also become extremely popular in the U.S. in just the past few years. The original intent of these skates in the U.S. was for summer hockey training. They were quickly adapted as a sport unto themselves and from 1991 to 1993 participation in the sport increased from approximately 6 million to 12.5 million in the U.S. (NSGA, 1994). n In 1993, 4.6 million pair of skates were sold, generating $310 million (Sports Style Magazine, 1993). The industry estimates a 30 percent increase in skates sold and dollars generated in 1994. Another rapidly growing trail-related activity is cross-country skiing which experienced an 80 percent increase during the period between the 1982 to 1983 and 1987 to 1988 ski seasons. Over 50 percent of participants interviewed were between the ages of 25 and 44 and over 50 percent had skied less than five years (Ski Industries America, Inc., 1988). Since the 1960’s, participation in horseback riding has been fairly constant, with a greater number of participants being female. Horseback riding is a very high expenditure activity. n The Heritage Trails Fund estimated the total amount contributed by equestrians to the economy of California and local communities to be $1.8 billion dollars. This is based upon a horse population of over one million, and includes annual costs for feeding, license fees, trucks and trailers, horse shelters, and other horse equipment.      Economic Impacts of Protecting Rivers, Trails, and Greenway Corridors      The Travel Industry Travel and tourism is the leading employer in several states and has been predicted to be the leading industry in the United States and the world by the year 2000. Travel is also a leading industry and source of jobs within regions and local communities, and is increasing in relative economic importance. Expenditures for travel and tourism impact transportation, lodging, eating establishments, retail, and service businesses. These expenditures support jobs, personal income, and government tax revenues. n  Travel industry employment for 1989 increased by nearly 3 million jobs from 1988. This employment includes air transportation, intercity highway travel, eating and drinking establishments, hotels and motels, and amusement and recreation services. The travel industry has continually out-performed the overall economy in creating new jobs. (U.S. Travel Data Center, 1989, 1990). In 1992, travel-generated visitor expenditures in California reached approximately $52.8 billion. These expenditures generated $938 million in local taxes, $2 billion in state taxes, 668,000 jobs and $11.5 billion in payroll expenditures. For purposes of this section, “travel and tourism-related expenditures” refer to those visits that originate from beyond the boundaries of your local economy. Typically, these are trips from at least 50 miles away and any trips which may involve an overnight stay. Expenditure patterns for visitors are usually higher than for local users. Spending by residents is discussed in Section 2 of this Resource Book. A greenway, which provides local opportunities and enhances tourist draw, can be an important asset to your community. Recent trend analyses show that Economic Impacts of Protecting Rivers, Trails, and Greenway Corridors 5-4 weekend trips to nearby areas are on the increase, while the traditional twoweek summer vacation is on the decline for today’s travellers. This is due to the job complications of two-income families, limited time budgets, interest in more specialized recreation experiences, increased mixing of personal and business travel, and year round schools.           In 1988, 75 percent of all travel was for pleasure. Outdoor recreation and entertainment are growing in importance and accounted for 41 percent of pleasure travel, while 34 percent was attributed to visiting family and friends. Business travel accounted for 17 percent of all travel in 1988, with the remaining 8 percent attributed to personal and other reasons. Travellers are also increasingly attracted to educational-oriented experiences provided by cultural and historic sites. Along with recreation and beautiful natural sites, tourists cite cultural heritage as one of three major reasons they travel to specific locations (U.S. Travel Data Center, 1991). One of the fastest growing areas of tourism includes cultural and historic community festivals, events, and competitions. This will be a boon to community- based tourism. Greenways and trails can provide a link between historic and cultural sites. For example, the Azalea Trail in Mobile, Alabama, serves as a city beautification project and attracts tourists. Because preservation of these historic sites serves as a stimulus for tourism, there can also be significant impacts to the local economy.           Attributing Expenditures to Rivers, Trails and Greenways Greenways, rivers, and trails can have varied levels of tourist draw. They can be travel destinations in themselves, encourage area visitors to extend their stay in the area or enhance business and pleasure visits. The “level of tourist draw” determines the appropriate proportion of the visitor’s time and travel expenditures that can be attributed to the greenway. If visitors extend their trip an extra night to visit a greenway, the additional night’s lodging and meals can be attributed to the greenway. San Antonio Riverwalk is considered the anchor of the tourismindustry in San Antonio, Texas. Tourism is the second largest economic sector in the the city, accounting for $1.2 billion annually. An auto survey concluded that the Riverwalk is the second most important tourist attraction in the state of Texas (Richard Hurd, SanAntonio Department of Parks and Recreation).        For every $1 paid to canoeing outfitters, customers spent $5 for gas, groceries, restaurants, campgrounds, and other lodging. 70 canoe liveries in Florida generate $38.5 million per year (Stout, 1986).      Many communities want to attract new, expanding, or relocating businesses to their area in order to increase their employment and tax bases. Retaining existing businesses within a community is even more important for economic stability. This section discusses the importance of quality of life factors in attracting new and relocating businesses. Greenways, rivers and trails contribute to quality of life, and their use is a benefit to corporate employees for exercise and relaxation. Quality of Life Attracts Businesses The importance of quality of life in an area is increasingly cited as a major factor in corporate and business location decisions. n  Quality of life for employees was the third most important factor in locating a business, according to an annual survey of chief executive officers conducted by Cushman and Wakefield in 1989. The two most important factors were access to domestic markets and availability of skilled labor. The top city for business was Atlanta, which also ranked first for highest quality of life. Seattle, which ranked as the second best city for business, also received very high marks for quality of life (San Francisco Chronicle, July 28, 1989). The Joint Economic Committee of the U.S. Congress reports that a city’s quality of life is more important than purely businessrelated factors when it comes to attracting new businesses, particularly in the rapidly growing high-tech and service industries (Scenic America,1987). One aspect of quality of life is a location with convenient access to natural settings, recreational and cultural opportunites, and open space.        A survey of 71 economists rated factors for Arizona’s attractiveness as a place to live, work, vacation, retire, and locate future plants and corporate headquarters. The strongest factors contributing to Arizona’s positive image were climate, job opportunities, and open space including abundant outdoor recreation opportunities. Seventy firms relocated or expanded their businesses in Arizona, creating 27,800 jobs and $970 million in indirect salaries and wages. Chief executive officers of these firms said they chose Arizona for its “outdoor lifestyle and recreation opportunities” (Valley National Bank, 1980).      Greenways Promote Employee Fitness Businesses are realizing the benefits of healthy employees, both in increased efficiency and decreased health insurance claims. Greenways help promote fitness by providing convenient opportunities for exercise, such as walking, jogging, or exercise courses. n  The American Heart Association conducted a study of 8,301 men and women employed at 35 corporations across the country and found that those who were the most physically fit, measured by a rigorous “step test” and body fat measurement, had a 37 percent lower absenteeism rate than those who were unfit. Another study by the American Heart Association reported that Control Data Corporation in Minneapolis, Minnesota saw a 30 percent reduction in medical claim costs and a 35 percent reduction in the length of hospital stays for people participating in a health promotion program (Krieger, 1991).      Greenways and trails also help reduce firms’ employees’ commuting costs because they provide opportunities to commute by foot or bicycle. n  More than 4 million adult Americans used a bicycle (at least occasionally) to commute to work or school during 1993 (Bicycle Federation of America, 1994).      Economic growth and conservation must be balanced. If growth is not carefully planned, it may undermine the quality of life which helped to attract businesses.      Conservation of greenways, rivers, and trails may result in reduced costs to local governments and other public agencies. By conserving a greenway corridor rather than permitting intensive development, local agencies may reduce costs for public services such as sewers, roads, and school facilities. Establishing a greenway in an area prone to hazards, such as flooding, may decrease costs for potential damages. Greenways and associated vegetation can also help control water, air and noise pollution by natural means, resulting in potential decreased pollution control costs. Greenways and trails may promote physical fitness, leading to decreased public health care costs. Public Service Requirements The choices between retaining undeveloped lands as open space or allowing residential development must be considered. How this choice effects public expenditures and the tax base is often the subject of debate. Expansion of the tax base is not always beneficial in the long term. Expansion almost always results in increased public service requirements. In many situations, the cost of providing these services to residential development is much higher than the revenues to local governments resulting from the expanded tax base. A list of development costs could include:      Hazard Mitigation Use of geologically or environmentally sensitive areas for open space or recreation purposes can reduce potential property damage costs and loss of life. Hazards which can be mitigated through conservation of open space include flooding, slope instability, structural fire damage, and earthquake losses. Many of the available examples focus on flood control.      Pollution Control Researchers have found that natural properties of plants and trees help mitigate water, air, and noise pollution. Greenways which help conserve such plants and trees provide a valuable contribution toward pollution control. These natural abilities are described below. Pollution can also be decreased by establishing trails and greenways which encourage people to walk or bicycle rather than drive automobiles.      Greenways can also help reduce other adverse impacts of urbanization. Drastic alterations of a ground surface, such as compaction or paving can reduce the infiltration capacity of a surface, which can cause a serious reduction in groundwater recharge and an increase in runoff. Greenways help reduce the impacts of noise in two ways. First, greenways serve to maintain distance between the noise source and receiver. Secondly, greenways can include planting barriers, such as tree belts and grassy areas that have the natural ability to absorb, deflect, and refract sound. The effectiveness of plants in controlling noise varies, depending upon the characteristics of the sound, the type, height, density and location of the planting, and climatic factors (Robinette, 1972). Although solid sound attenuation walls may still be necessary to mitigate noise impacts, the distance buffer of greenways and the natural ability of plants should not be overlooked. Greenways as buffers may also have a visual and psychological advantage over masonry walls.      Greenways also help control air pollution because plants are natural air cleaners. Plants cleanse the air through the process of photosynthesis, which removes carbon dioxide from the air and returns oxygen. Specifically, plants control air pollution through oxygenation and dilution. Oxygenation refers to the introduction of excess oxygen into the atmosphere. The ability of plants to introduce excess oxygen into oxygen-deficient air serves to readjust the balance. A wide greenbelt along a highway could readjust the air balance in the area. Plants also act as cleansers by absorbing pollutants directly into their leaves and assimilating them (Robinette, 1972). Vegetation can absorb ozone, sulfur dioxide, carbon monoxide, and airborne particles of heavy metals.      n For every mile a person walks or runs, they will save society 24 cents per mile in medical and other costs. These figures are the results of a theoretical model developed by the Rand Corporation (Men’s Fitness Magazine, 1992). n Recreation activities involving exercise reduce health care costs. People who exercise regularly have 14 percent lower claims against their medical insurance, spend 30 percent fewer days in the hospital, and have 41 percent fewer claims greater than $5,000. These figures were taken from a Corporate Wellness Study for the city of San Jose, Department of Recreation, in 1988. In 1991 the average American family paid nearly 12 per cent of average family income for health care, according to a Families USA Foundation study. By the year 2000, the study predicts families will be paying over 16 per cent of their income for health care. (U.S. News and World Report, December 23, 1991. n Exercise derived from recreational activities lessens health related problems and subsequent health care costs. Every year, premature deaths cost American companies an estimated 132 million lost work days at a price tag of $25 billion. Finding and training replacements costs industry more than $700 million each year. In addition, American businesses lose an estimated $3 billion every year because of employee health problems (National Park Service, 1983).      Preservation Values Analysis of economic benefits can also be used to determine the values which people place on resources, even if they do not use them. These non-users may value the resource for several reasons. The different types of preservation values and their definitions are as follows: option value Knowing there is guaranteed opportunity for future access to the resource existence value Knowing that a resource has been preserved in perpetuity, even if no recreational use is contemplated bequest value Knowing that future generations will have the opportunity to enjoy the resource.