A presentation by RJF's Scott Chapin, presented in Copper Harbor, Michigan, in 2011.

1. Scott Chapin
RJF, a Marsh & McLennan Agency LLC company
ECONOMIC IMPACT
OF MOUNTAIN
BICYCLING &
TRAILS

2. BACKGROUND
Scott Chapin
Economics Major, University
Wisconsin-Eau Claire
President, Sawyer County
Development Corporation
Past President, Northland
Area Builders Association
Director, American Birkebeiner
Ski Foundation

3. BACKGROUND
Scott Chapin
> Avid cyclist, runner, skier
> Active with local IMBA club-
CAMBA
> Insurance broker specializing
in bicycle and ski industry
risks
> Work with 150+ bike clubs in
U.S.

4. MOUNTAIN BIKING-TRAIL
DEVELOPMENT
Attracts tourists
Tourists could become
seasonal or permanent
residents
Attracts commerce
Enhances communities

5. MOUNTAIN BIKE TRAIL
DEVELOPMENT
Land Managers,
Municipalities, Chambers of
Commerce Question
Economic Impact Data
Having Economic Data
Helps with Financial and
Political Support of Trail
Projects
Helps With Volunteer Base

6. ECONOMIC DATA
Analysis is for Sawyer
County
Sawyer County Located in
NW Wisconsin
Sawyer County Population =
16,196 (2000)
2 ½ Hours from Minneapolis
Median Per Capita Income =
$24,288 (2002)

7. ECONOMIC DATA
Tourist Area, Historically
Fishing/Hunting
Service Sector Economy
Known for Events: American
Birkebeiner, Lumberjack
World Championships,
Chequamegon Fat Tire
Festival

8. ECONOMIC DATA
Many second homeowners
in area
Chequamegon Area
Mountain Bike Association
developed around 1990
Started signing existing
double-track/roads
Focus on singletrack for past
8 Years

9. TYPES OF ECONOMIC IMPACT
Direct-Initial purchase
Indirect-Cross industry
Induced-Cycled again in
community

10. ECONOMIC STATISTICS
(BICYCLING) NATIONAL
$133 billion annual
contribution to the U.S.
economy
Supports 1.1 million jobs
Generates $17.7 billion in
annual federal and state tax
revenues

11. ECONOMIC STATISTICS
(BICYCLING) NATIONAL
In 2005- 19.8 million bicycles were sold in the United
States (4.4 M more than all autos sold)
NBDA-$5.6 billion in retail sales of bikes/parts
annually
Average retail bike shop has 6 FTE’s
4,200 retail shops in US (>25,000 FTE’s)

12. ECONOMIC STATISTICS
(BICYCLING)-NATIONAL
Produces $53.1 billion
annually in retail sales and
services
> $6.2 billion in gear sales
> $46.9 billion in bicycling-trip
expenditures

13. WISCONSIN ECONOMIC IMPACT
(BICYCLING)
49% of Wisconsin residents
bicycle
Economic impact of bicycle
recreation/tourism is $925
million
Average daily expenditure =
$60
Greater impact than hunting
57% of expenditures from
non-residents

14. MINNESOTA ECONOMIC IMPACT
Road bicycling
> $686M per year
> 4,148 jobs
Mountain bicycling
> $318M per year
> 1,116 jobs

15. WISCONSIN ECONOMIC IMPACT
(BICYCLING)
Bicycling contributes $1.5
billion annually and 13,200
jobs (including tourism) to
Wisconsin’s Economy
2.5 million WI residents ride
bicycles for recreation
Over 300 bike-related events
in WI

16. ECONOMIC IMPACT (BICYCLING)-
REGIONALLY
IN, IL, MI, OH, WI
Contributes $17 billion to
regional economy
Supports 191,000 jobs
Generates $2.2 billion in
state and federal tax
revenues

17. ECONOMIC IMPACT (BICYCLING)-
REGIONALLY
$12.1 billion in retail sales
> $873 million in bicycling gear
sales
> $11.2 billion in bicycling trip-
related expenditures

18. ECONOMIC IMPACT (BICYCLING)-
REGIONALLY
2001: bicycle tourism
brought $66.8 million to
Maine economy
Bicycling-related businesses
bring $315M to Minnesota’s
economy annually

19. DEFINED LOCATION ECONOMIC
IMPACT
Trails in Miami Valley of Ohio attract 1,000,000
visitors who spend $16 million on related goods and
services
2009 USA Cycling National CX Championships
brought $1 million to Bend, Oregon
RAGBRAI: $24 million in economic impact
Moab, Utah: $8.8 million in economic impact (1996)

20. DEFINED LOCATION ECONOMIC
IMPACT
Bicycle industry in Santa Cruz, CA, generates more
than $130M in revenue, 500 jobs
Bicycle-related economic activity provides $90M and
850-1150 jobs for the city of Portland, OR. From
2006 to 2008, the value of the Portland bicycle
industry increased 38%.

21. DEFINED LOCATION ECONOMIC
IMPACT
Bicyclists in the northern Outer
Banks region of North Carolina
bring an estimated $60 million
annually to the area's economy,
nearly nine times the one-time
expenditure of $6.7 million of
public funds to construct bicycle
facilities in the region.
1,400 jobs are created and/or
supported annually by the
bicyclists' expenditures.

22. DEFINED LOCATION ECONOMIC
IMPACT
The Harbin Park Cyclocross Race in Cincinnati was
estimated to bring $200,000 to the community in 2010. 70%
of participants traveled in from over 100 miles to compete,
and more than 80% stayed two nights or more in the region.

23. DEFINED LOCATION ECONOMIC
IMPACT
Chequamegon Area (Cable/Hayward): $1.17M in
1997 (likely 3x this now)
161 U.S. ski areas open trails to bikers in summer-
84 run lifts for cyclists
50% of Colorado tourists are engaged in cycling-
$141M-$193M
American Birkebeiner brings in $4M to
Hayward/Cable area

24. Defined Location Economic Impact
Colorado-Other Revenue
Generators
> Bicycle Tours: $640,000
> Racing: $2,000,000
> Charity Rides: $3,400,000

25. GENERAL PUBLIC (INCORRECT)
ASSUMPTIONS
Cyclists are cheap
Participants do not spend as
much as other user groups
(tourists)
Participants have average
income levels
Participants (off-road) are
20-somethings

26. FACTS ABOUT CYCLISTS
53% of participants in Chequamegon Fat Tire
Festival (2,500) are between 35-49
30% of cyclists have annual household incomes
over $125,000
49% of cyclists have annual household incomes
over $100,000 (ABSF Survey)
87% of cyclists are college graduates

27. Silent Sports Trends
1998-2004: 16-24 Year Olds:
> Snowshoeing +50% > Single Track Bicycling
> Trail Running +20% for +92.5%
Participants and Enthusiasts > Trail Running +50% (Future
> Single Track Bicycling +183% Market)
> Dirt Road Bicycling +112.5%
> Snowshoeing +300% for
Enthusiast Category Female Enthusiast:
(Repetitive Potential Visits) > Single Track Bicycling
+112.5%
> Snowshoeing +100%
Data from Outdoor Industry Foundation

28. GENERAL FACTS ABOUT TOURISTS
Motel/Hotel tourists spend
$126 per day
Campground tourists spend
$75 per day
Daytripper tourists spend
$40 per day
Often it is assumed that
most cyclists visiting the
area are “tourists”

29. GENERAL FACTS ABOUT
SECOND HOMEOWNERS
Second homeowners spend
$17,571 per year in Sawyer
County (Sawyer Co. Dev.
Cor. Study-2008)
Survey sent to all non-
resident homeowners with
improvements over $80,000
100 User Days Per Year

30. GENERAL FACTS ABOUT
SECOND HOMEOWNERS
Basic consumption items
= $5,700 per household
(Average)
Recreation equipment
= $2,800 per household
Needs for Home
(Construction, Remodeling)
= $14,400 per household
Note: Not all spent money in
all categories

31. LAND VALUES ADJACENT TO
TRAILS
Developers in NW
specializing in recreational
use dependent upon market
land values 3 years ago
were double
Land values today are 50%
higher than non-recreational
developments

32. THE BROOK-SEELEY
HIGHLANDS
Your home at the Brook will be located
in the Namekagon River Valley. This
beautiful and diverse property is a
blend of pine and aspen woodlands
and partially wooded meadows.
Immediately adjacent to the
Birkebeiner Ski Trail and Camba
Mountain Bike Trails, The Brook is
bordered on the north and east by
thousands of acres of Sawyer County
Forest. Homeowners enjoy 14 km of
private trails, professionally groomed
in winter for both classic and freestyle
skiers, that link directly to the
American Birkebeiner trail. The perfect
“silent sports retreat”, The Brook
beckons to active northwoods
enthusiasts who love the feeling that
“...one hour at the cabin feels like 5
days.”

33. LAND VALUES ADJACENT TO
TRAILS
Statistics on Land Values
How do bicycling investments affect real estate?
> According to a study of the Little Miami Scenic Trail, for every foot
closer a house is to the trail, its price increases by $7.05.(Karadeniz,
D., 2008, The Impact of the Little Miami Scenic Trail on Single Family
Property Values, University of Cincinnati Masters Thesis)
> Two-thirds of Omaha, Nebraska, residents who live near bike trails
believe the trails would increase the selling price of their
home.(Greer, D. L., 2000, Omaha Recreational Trails: Their Effect on
Property Values and Public Safety, National Park Service, University
of Nebraska at Omaha, June, 2000)
http://www.bikesbelong.oli.us/Resources/Real_estate.pdf

34. LAND VALUES ADJACENT TO
TRAILS
Houses located in areas with
above-average levels of walkability
[or bikeability] are worth up to
$34,000 more than similar houses
in areas with average walkability
levels.
> (Cortright, J., 2009, "Walking the
Walk: How walkability raises
home values in U.S. cities,"
CEOs for Cities)
In a survey of recent transplants to
Portland, OR, 62% said that the
city's bike-friendliness was a factor
in their decision to move there.
> (City of Portland Bureau of
Transportation, 2009, Portland
Bicycle)

35. LAND VALUES ADJACENT TO
TRAILS
In Minneapolis-St. Paul, for every 400 meters closer a
median-priced home is to an off-street bicycle facility, its
value increases by $510.
> (Krizek, K., 2006, Two approaches to valuing some of bicycle
facilities' presumed benefits, Journal of the American Planning
Association, 72, 309-19)
Homes within a half-mile of Indiana’s Monon Trail sell for an
average of 11 percent more than identical homes further
away.
> (Lindsey et al., 2004, Property values, recreation values, and urban
greenways, Journal of Park and Recreation Administration, 22, 69-
90)

36. DATA ANALYSIS-IMPACT
Seeley Hills Recreational
Development
> Adjacent to CAMBA and
Birkie Trails
> Sample 5.5 Miles of Road
> 1994-7 Homes
> 2010- 51 Homes
> 33 of the 51 are Second
Homeowners
> 2 Retirees
> 14 (Newly) Permanent
Transplant
> 2 Originally from Area

38. DATA ANALYSIS-IMPACT
50/51 Participate in Silent Sports
> Average Home Value $300,000
> Economic Impact of New Homes ($13.2 M)
> Average Property Taxes $2,000
> Property Tax Revenue $88,000
> Average Expenditure in Sawyer County $17,571
> Economic Impact $589,743 (Annually)

39. DATA ANALYSIS-IMPACT
Seeley Highlands Development-1997
> 67 Acres
> 18 Lots
> Land Values in 1997-5 Acres: $5,000-$8,500
> 14 Homes in 2010
> 3 Acre Parcels Sold for $13,000-$16,000 in 1997-2000
> 2010: $40,000-$50,000 for same lots

40. TRAIL BUILDING – THE
BEGINNING

41. TRAIL BUILDING TECHNIQUES

42. USES FOR THIS DATA
Community Support Proud Sponsors of CAMBA
Public Support
Grant Opportunities
Volunteer Support
Land Value Increases-
Private Land

43. USES FOR THIS DATA
Grant Opportunities
> Many Grants Available
> Economic Improvement Grants
> Contact Economic Development Corporation
> Similar Focus on ROI

44. HOW CAN I USE THIS DATA
Grant Scorers Look At:
> 1st or 2nd Tier Jobs (Permanent)
> Money Spent in Community (6x7 Times)
> Sales and Property Tax Revenue Generated
> Social Impact on Community (Need to Sell your
“story”…..effects on children)
> “Emotional” Scoring
> Letters of Support from Legislators
> Important to Involve Those on Appropriation Committees
(if for Federal or State Grants)
> Letters of Individual Support

45. USES FOR THIS DATA
Public Support
> Politicians Understand ROI
> Trailbuilding Projects=Tax
Revenue
> Second Homeowners do not
have
> children in schools, but still
pay taxes.

46. CONCLUSIONS
Mountain Bike Trail Building
Increases Land Values
Mountain Bike Trail Building
Increases Property Tax
Revenue
Mountain Bike Trail Building
Produces Local Economic
Impact
Trails Brings External
Revenue

47. CONCLUSIONS
Races/Events Promotes Repetitive Visits to Trails
(Training for Events)
Demographic Trends Show Younger Participation in
Many Silent Sports-Singletrack Bicycling .

48. CONTACT
SCOTT CHAPIN Online
RJF, a Marsh & McLennan Facebook.com/RJF.BikeAndSki
Agency LLC company
LinkedIn.com/in/scottschapin
15954 Rivers Edge Drive //
BicycleIndustry.RJFAgencies.com
Suite 203
Hayward, Wisconsin 54843
715-634-6513