Economic Impact of Tower

Avenue Closing and

Reconstruction
Brian Honness
Dr. Zamira Simkins
UW-Superior

Background: Businesses

North Tower Avenue is home to over 100

businesses and serves as the heart of
downtown Superior, WI.
Majority of businesses rely heavily on customer
traffic (restaurants, bars, shops, etc.).

Many Tower Avenue businesses are cyclical.

Background: Planning
Process

In 2007, the city of Superior and the

Wisconsin DOT started the planning process
for Tower Avenue.
It was not until 2013 that the construction began.

The city and state communicated heavily on

many levels about aesthetics and
specifications such as parking, bike
lanes,etc.

Background: Road Construciton

Specifications

The portion of Tower Avenue that was

reconstructed was 0.9 miles.
The reconstruction of Tower Avenue was
much needed.
Concrete had not been replaced since 1935.
Underground combined wastewater sewer system
dated back to 1890.
The storm system had not been changed in many
years.

The state wanted to reduce pedestrian

crashes along Tower Avenue.

Background: Costs of
Reconstruction
The total estimated cost for the
construction of Tower Avenue was just
under $13,375,000.
The estimated cost was formulated through
a state bidding process for the job.

$13,375,000 was the lowest construction bid.

The final cost of the construction was just

over $14 million.
This includes an 8% delivery fee for the materials.

Main Research Questions

How were the businesses on Tower Avenue
affected by the closing?
What are the economic impacts of the road
closing and reconstruction?
How efficient was the construction of Tower
Avenue?
How efficient is the design of Tower Avenue?

Overview of Research
Methods

Literature Review
Reviewed four articles that held similarities to the
Tower Avenue construction.
Compared the construction specifications of the
Woodland Avenue construction in Duluth, MN.

Survey of Businesses
40 question survey distributed to businesses in
construction zone

Interviews with City Officials

Interviewed Superior, WI Mayor Bruce Hagen and
Tower Avenue Project Designer Stephanie King

Literature Review

National Complete Streets Coalition: Economic

Development by Smart Growth America:
Businesses along streets with increased foot traffic
saw an increase in sales.
Residents in many cities saved money due to a
decreased use in private motor vehicles .

Economic Impact of Nicollet Mall Reconstruction

by Donjek and Anton Economics:
Changes in sales, employment, and consumer traffic
project to increase after construction.
Resident population on Nicollet Mall expected to
increase from 35,000 people to 70,000 people.

Literature Review Cont.

Road Improvements to Promote Local Economic

Development: An Iowa Case Study by James
Hunt
Program was created to stimulate economic growth in
Iowa, starting in 1985.
70% of projects achieved their developmental goal.

Subway Work on Second Avenue Hobbles Stores

by Joseph Berger
29 storefronts closed because of the construction.
The completion date has been pushed back four years,
the cost has increased by over $1 billion, and numerous
businesses have had large decreases in sales.

Woodland Avenue
Reconstruction

Most similar reconstruction project to Tower

Avenue
Storm water and sanitary sewer system replacement.
Reconstructed area spanned 0.9 miles.
Weather conditions are identical to Tower Ave.

The cost of Woodland Ave was $4,817,054,

which is just over 1/3rd of Tower Avenue.
Prices of services and materials are almost the same
as they would be for Tower Ave.

Woodland Ave did not have an aesthetics focus

like Tower Ave did.

Business Surveys

There were 40 questions divided into 3

phases.
Pre-Construction, Construction, and PostConstruction.

Questions were designed to analyze change in

quantitative and qualitative measures.
Changes in sales, customer traffic, employment, etc.
Was the construction efficient, practical, necessary,
etc.
How their business will perform in the future due to
the reconstruction.

Business Survey Results

110 businesses on Tower Avenue
Surveys distributed to 63 businesses
located in the reconstructed area
Sample size: 11 completed surveys
Response rate: 17.5%
Margin of error: 28.16% (95% confidence
level)

Business Survey Results: PreConstruction

How well was your business performing before the construction?How many customers did you see daily before the construction?

20%

30%

Great
Good
Average

13%
50%
38%

50%

Less than 10
10 to 50
More than
50

Business Survey Results: PreConstruction Continued

How much notice did you have about the closure?
Did the City of Superior help your business prepare for the closure?

1 year or
more
6-9 months
3-6 months
1-3 months
Less than 1
month

10%
10%

80%

50%

50%

Yes
No

Business Survey Results: During

Construction
How well was your business doing during the construction?Did customers have easy access to your business during construction?

30%

20%

20%
30%

Great
Good
Average
Sub-par
Poor

40%
60%

Yes
No

Survey Results: During

Construction Continued
Were customers' habits the same during the construction as they were before the constructiHave
on? you increased, decreased or maintained the same number of workers during the construction as before the construction?

30%

70%

10%
10%

Yes
No

80%

Decrea
sed by
60%
Decrea
sed by
20%

Survey Results: During

Construction Continued
Did the City of Superior provide assistance during the closing?Overall, how would you say that the construciton impacted your business during the construction?

10%

90%

Yes,
advertising
No
assistance
was
provided

9%
9%

36%

18%
27%

Large
negative
impact
Minor
negative
impact
No impact
Minor
positive
impact

Business Survey Results: PostConstruction

How well is your business doing now that the construction has been completed?

27%

18%

Great
Good
Average
Sub-par
Poor

How many customers do you have daily now that the road is open?

22% 22%

18% 36%
56%

Less than
10
10 to 50
More than
50

Business Survey Results: PostConstruction Continued

Now that the road has been reconstructed, do you plan to expand your business, keep it the same, or are you downsizinHowg? do you expect the redesign of Tower Avenue wil impact your business during the next 12 months?

9% 9%
9%

73%

Plan to
close
Thinkin
g of
selling
Keepin
g it the
same

18%
36%
45%

More than
10% boost
in sales
5-10 %
boost in
sales
1-5% boost
in sales
No impact
Negative
impact

Conclusion

Conclusion Cont.

Questions?

Works Cited