Long-Term Business and Land Development Impacts of Access Management: Minnesota Interstate 394 Case Study

• Authored by:  David J. Plazak
• Co-authored by:  H. Preston

Plazak, D. and H. Preston, “Long-Term Business and Land Development Impacts of Access Management: Minnesota Interstate 394 Case Study,” Paper 06-0040, 85th Annual Transportation Research Board Meeting, Washington, D.C. (2006)
This I-394 study provides a comprehensive and systematic analysis of the economic effects of highway improvements. Following a review of relevant literature, an overview of the corridor was developed that covered transportation and business conditions of the entire corridor before and after conversion of the existing US 12 highway to a limited access interstate freeway. Last a sample of 22 parcels that represented 9 business types along the corridor were selected for further study. The parcel study focused on details such as travel patterns/times/distances, land use, property values, and business turnover.
The I-394 case study found that transportation performance measures (speed, volume, and traffic operations) improved as a result of the conversion of US 12 to a limited access interstate freeway, even though traffic volumes almost doubled due to growth in both the corridor and the region. The business performance measures (property values, employment, business turnover, and property development trends) also improved. The study indicated that after much greater control of direct land access was enacted, no significant business or land development impacts were noticed. These results are consistent with the findings of the previous research and indicate that concerns of long term adverse economic impacts associated with the conversion of US Highway 12 to I-394 were not realized. In some cases business activity improved due to the continued availability of access to abutting neighborhoods.