Trail Development Seminar Suggests Huge Economic Potential for Gogebic Range

IRONWOOD, MI - Thursday, September 16, 2010 - It was standing room only yesterday evening as Scott Chapin (Hayward, WI), representative of RJF Agencies, and Hansi Johnson (Duluth, MN), the Midwest Regional Director of the IMBA (International Mountain Bike Association), demonstrated the economic impact of trail building throughout the Gogebic Range. The seminar was hosted by the Friends of the Miners Memorial Park and it took place in conference room B-22 of the Jacob Solen Business Center at the Gogebic Community College.

Scott Chapin was the first to address the crowd of about 60 people. Chapin, an Economics Major graduating from the University of Wisconsin, Eau Claire, is the President of the Sawyer County Development Corporation. He was previously the President of the Northland Area Builders Association and is the Secretary of the American Birkebeiner Ski Foundation. He is an avid cyclist, runner and skier. He’s an active member of the Chequamegon Area Mountain Bike Association (his local IMBA Club). He’s a broker for the IMBA; he operates a retail bike shop; and he’s very active in the race program.

According to Chapin, trail developments attract tourists. It is not unusual for tourists to purchase seasonal or permanent residences. Trails attract commerce as well, and in so doing, they enhance the community. He pointed out that having accurate economic data was essential to gather political support for trail projects. He said that land managers, municipalities, and Chambers of Commerce often question what the economic impact of a trail system will have on an area. Having accurate data also gains local support for the project, and getting volunteers to help becomes much easier.

The data Chapin presented last night was primarily self-gathered and is largely based on the economic impact of trails in Sawyer County, located in NW Wisconsin. According to the 2000 census, Sawyer County has a population of approximately 16,196 people. It’s 2 ½ hours north of Minneapolis, MN and the median per capita income is $24,288.The leading source of revenue for the area is tourism, historically fishing and hunting. It has a service sector economy. It is best known, however, for the American Birkebeiner, the Chequmegon Fat Tire Festival, and the Lumberjack World Championships.

Sawyer County has many second homeowners. The Chequamegon Area Mountain Bike Association was created in 1990. They began by signing existing double-track trails and roads. Recently, however, their focus has been single-track trails.

Chapin pointed out different ways the economy is impacted by trail systems. One of the ways is through direct sales - initial purchases - where people purchase their mountain bikes and other equipment. Having a good trail system increases sales to existing bike and ski shops or may even encourage new upstart businesses to provide the necessary equipment. Another way the economy gains from trails is indirectly. Motels, gas stations, cafes, restaurants, retail shops, clubs and taverns, etc. gain business through the influx of tourism. And finally, it’s important to note that money earned through the trail systems in the various shops, restaurants, cafes, etc. is circulated throughout the area again and again.

On average, mountain biking alone contributes $133 billion annually to the U.S. economy. It supports 1.1 million jobs and generates $17.7 billion in annual federal and state tax revenue. It produces $53.1 billion annually in retail sales and services – $6.2 billion in gear sales and $46.9 billion in bicycling-trip expenditures.

Regionally, (throughout IN, IL, MI, OH and WI), biking and related sports contribute $17 billion dollars to the regional economy. It supports 191,000 jobs and generates $2.2 billion dollars in state and federal tax revenues. It generated $12.1 billion in regional retail sales – $873 million in bicycling gear sales and $11.2 billion in bicycling trip-related expenditures.

In Wisconsin, 49% of all residents bicycle. The Economic impact of bicycle recreation/tourism is $925 million. The average daily expenditure on bicycling in Wisconsin is $60. 57% of all expenditures in the state of Wisconsin are from non-residents. Bicycling in Wisconsin has a greater impact on the economy than hunting.

Chapin pointed out that many local communities throughout the region have discovered huge revenues can be generated as a result of good trail systems. Trails in Miami Valley of Ohio attract 1,000,000 visitors who spend $16 million on related goods and services. The 2009 USA Cycling National CX Championships brought $1 M to Bend, Oregon. RAGBRAI brought $24 million and Moab Utah realizes $8.8 million annually.

In 1997, the Chequamegon Area (Cable/Hayward) saw revenues of $1.17 million. According to Chapin that figure has increase by over times in recent years. Chapin told the crowd in attendance that 161 U.S. Ski Areas open trails to bikers in the summer. 84 of them run lifts for cyclists. He said, however, that the most successful alpine ski areas, in regards to biking, utilize trails rather than lifts.

Half of Colorado tourists are engaged in cycling. Colorado’s economy is benefitted by between $141 million and $193 million annually. Related activities that impact Colorado’s economy are as follows: Bicycle Tours ($640,000); Racing ($2 million) and Charity Rides ($3.4 million).

Chapin said many people in the general public have preconceived assumptions about cyclists. He said the figures he previously presented clearly demonstrate that many of these assumptions are simply not true.

Many people believe cyclists are cheap. Obviously, they are not. They spend billions of dollars a year, and any community that doesn’t try to attract this crowd is foolish. Another misconception is that cyclists do not spend as much as other user groups (tourists). That assumption has been made several times in our area. Many believe that cyclists have average or below average incomes. And that all off-road cyclists are 20-somethings.

The truth is 53% of participants in Chequamegon Fat Tire Festival (2,500) are between 35 and 49 years of age. 30% of cyclists have household incomes over $125,000. 49% of cyclists have household incomes over $100,000 (ABSF Survey) and 87% of cyclists/skiers are college graduates.

In general, tourism has a very big impact on our community. It is our major source of revenue here. According to Chapin, motel/hotel tourists spend $126 per day. Campground tourists spend $75 per day. Daytripper tourists spend $40 per day. Other it is assumed that most cyclists visiting the area are “tourists.” More and more cyclists are buying second homes in areas they like to bike.

According to a Sawyer County Development Corporation study made in 2008, second homeowners spend $17,571 per year in Sawyer County. The survey was sent to all non-resident homeowners with improvements over $80,000. On average second homeowners spend 100 user days per year in Sawyer County.

Chapin said second homeowners spend $5,700 per household on basic consumption items; $2,800 per household on recreation equipment; and $14,400 per household on needs for the home (construction, remodeling, etc.). NOTE: Not all spent money in all categories. Land values adjacent to trails are dependent upon the market, but are generally double of non-trail values.

Chapin told the crowd that the Seely Hills area is a good example of what can happen by developing good trails in the area. In 1994 there were seven homes along the CAMBA and Birkie Trails along a 5.5 mile stretch of road in Seely. Today, there are 51 homes along that stretch.33 of the homes are second homeowners. There 2 retirees living there. 14 of the homeowners in the area have permanently moved to the area, and two were originally from Seely.

Fifty of the fifty-one residents on the 5.5 mile road participate in silent sports. The average home value is $300,000. The economic impact of the new homes is $13.2 million. The average property tax bill is $2,000 creating tax revenues of $88,000 annually. The average expenditure in Sawyer County is $17,571. This is a total economic impact of $589,743 annually.

Chapin said the information he provides is useful in developing community support; public support; and for assisting in grant opportunities. Community support includes support from local businesses in the form of sponsorships, etc.; volunteer support, people helping to develop the trail system and to help to maintain the trails; and increase in land values.

Chapin told the audience that many grants are available including Economic Improvement Grants; and money from the Economic Development Corporation. He said that grant scorers look at first and second tier jobs created by the project; money spent in the community; sales and property taxes generated; social impact on the community; and “emotional scoring.” He said it’s important to sell your “story” and let the grant scorers understand the effects of the projects on area children.

He said that grant scorer also look for: letters of support from legislators; Appropriations Committees; and letters of individual support. He said in order to gain public support was important for local politicians to understand ROI; that trailbuilding projects equal tax revenue; and that second homeowners do not have children in our schools, but still pay taxes.

In closing, Chapin told the group that Trail Building increases land values; increases property tax revenues; produces local economic impact; and brings external revenue to the area. He said that the Gogebic Range is an idea area for trail development. He said he used to own property in the area, and that he wishes, at times, that he still did. 

Hansi Johnson apologized because his PowerPoint presentation wouldn’t work on the college’s system. He said it was unfortunate because he had many images that would give people a better understanding about what mountain biking was all about. He complimented Chapin’s presentation and said his hope was to show how all of what he had presented was possible here on the Gogebic Range.

He said many surrounding areas have already begun trail systems and they have already proven to be very successful.

Hansi Johnson works for the International Mountain Biking Association (IMBA). IMBA is the advocacy group responsible for promoting mountain biking and trail development. Johnson is actually the Midwest Regional Director for the IMBA and he oversees five states with 73 biking clubs. He resides in Duluth, MN and is quite familiar with the area.

IMBA was founded in 1988 by a solid group of cyclists out of California. The group’s original mission was to protect the interests of mountain bikers – to help preserve their established trails of the day, and to encourage development of additional trails in the future. Today IMBA has over 80,000 constituents. In 2009, IMBA affiliated clubs and members volunteered over 1 million hours to trail maintenance and development. IMBA routinely works with the Forestry Departments, DNRs and other government agencies, acting as the go-between for area cyclists.

In addition to advocacy and lobbying on a Federal, State and Local level, IMBA offers a fee- based consulting service – much like is available to alpine ski resorts – that helps develop trail systems throughout the country. There are five regional IMBA directors in the United States. We are fortunate to have one so close in Duluth. Johnson, being one of the five, makes all of the tools available through the IMBA should the Gogebic Range decide to develop a proper single-track trail system.

Johnson told the audience that mountain biking as a sport, is a relatively new movement. He said he was disappointed because his PowerPoint presentation featured a photo of himself having a beer with the founder of the mountain bike movement, 64 year-old Gary Fisher and Aaron Rogers, the developer of the Copper Harbor trail system.

Johnson explained that there is a revolution of sorts in the making. Trails for mountain biking are changing, and most people would be surprised when they actually see what a single-track trail looks like. At one time, land set aside for mountain biking was the least favorable land available – basically swamp land. Many local governments didn’t really understand what mountain bikers wanted as a user group. He said the group was often misunderstood to be the younger “Mountain Dew” crowd. The most active members of the 73 clubs Johnson represents are between the ages of 30 and 40 years of age. He pointed out that many of the negative stereotypes regarding mountain biking were simply untrue.

Johnson pointed out that most of the modern clubs are very concerned about conserving green space. He said the trails that are being developed have a very small footprint and they do little if any damage to the ecosystem. He said when he was growing up in Minnesota he was exposed to the outdoors by his grandfather who loved to hunt and fish. Likewise, Johnson’s father liked to hunt and fish, and he passed his passion for the outdoors on to his children.

Although he still enjoys hunting and fishing, Johnson told the crowd that those outdoor activities are quickly dying. He said he wasn’t sure what the numbers were like in Michigan, but in Minnesota the numbers of hunters and fishermen have reduced significantly over the past several years.

“The kids just aren’t going outside.” Johnson noted. “What are we going to do to inspire them to go outside?” He said that mountain biking seems to be the one thing that excites young people enough for them to leave their Nintendo behind and to get out and enjoy the great outdoors. He said that as the older outdoor activities are losing favor, it’s important to focus on sports like mountain biking that attract young people into a more active lifestyle.

Johnson said that Chapin did a good job of describing the impact of mountain bikers as tourists. Be he would like to further discuss what mountain biking can do to and for a community – not only bringing people to the community but bringing people within the community outside to enjoy the trails.

According to Johnson, one in five Americans, 16 years of age and older, mountain bike. It is the favorite outdoor activity among children between the ages of 6 and 17 years. Mountain biking pumps approximately $26 billion into the U.S. economy annually and it is the fasted growing segment of the tourism industry. For every $1 invested in trails, there is approximately $3 worth of health benefits returned a community. In southern Missouri, 55% of trail users are exercising more than they had before there were trails available there. The average weight of the users in the area has dropped by 7 pounds by having access to paved trails nearby.

Johnson told the crowd that they have made a good first start by contacting the IMBA to examine the possible development of trails in the area. He said it’s very important to educate people about the benefits of a trail system in order to gain community support. He said that trail groups are the best way to initiate construction of a trail system.

He referred to a new system that was being developed in Crosby, MN. He said Crosby is much like the Ironwood area, which was once heavily dependent on mining, but hasn’t seen any mining since 1950. He said Crosby was unique, however, in the fact that there are no mountain biking groups within the town. He said that the town actually initiated the idea of creating trails along old mine sites. In one summer alone, the Town of Crosby built 22 miles of trails on the old mine pits. Recently a club has begun to develop in the town, but they are the unique exception to the rule that clubs generally spark the creation of trails in a community.

He asked the audience if there was an organized mountain biking club in the area. He was told that there was the Tuesday Night Fat Tire Club, but there wasn’t a real organized group. Johnson was pleased to hear that, and it said it was a good start. A member of the audience said, “I’ve been riding for about 16 years!”

Johnson was pleased, and he suggested that the club become more organized and more involved politically to initiate the construction of a quality trail system throughout the area. He briefly described what a single-track trail is all about.

Generally, sustainable single-track trails are only 18 to 24" wide. They have a very low impact on the environment. They are small ribbons of trails rather that widely cleared roadways used in other sports. He said mountain bikers prefer narrow trails that don’t greatly impact the surrounding environment. He said rustic trails are what are in favor.

He said there is a right way and a wrong way to build a trail. He pointed out that cross country ski trails like slopes which provide slide, where mountain bikes prefer following the contour of inclines. It’s important to construct the trails so that water can properly shed off of the track.

“We’ve all seen the ATV trails. We’ve all seen the incorrectly built bike trails that are just rutted and channeled and just eroded. And that just doesn’t have to be that way.” Johnson explained, pointing out the importance of having proper guidance in the construction of a quality trail system. He said properly built trails are better because they are more fun, they require less maintenance, and they are cheaper to build.

Johnson pointed out that most of the existing trails in any given area are created by the hardcore enthusiasts and they are often too difficult for the run-of-the-mill casual cyclist. He said it’s important to develop trails that can be fun for the casual mountain biker yet still be challenging for the more advanced riders. A good trail system will accommodate all talent levels – from the beginner to the advanced. Having an all-inclusive trail system will appeal to all users, and if they have fun on your trails, they will come back again and again.

He said that it is very important for trails to highlight the area’s natural beauty. He said when he was first approached by a few of the locals, he and Chapin agreed that the Gogebic Range was an ideal place for the development of an awesome trail system. Not only is the area breathtakingly beautiful, but it also has a fascinating history that would attract users from all over.

Johnson said that mapping and signing trails was a very big part of trail development. He urged people to check out the Copper Harbor website - http://www.copperharbortrails.org/.

He said that trails need to be friendly and inviting to be successful. The must be properly signed and properly promoted.

Johnson said, that in his experience, the most successful trails were those that had a lot of community involvement. He said that he was impressed with the number of people who came out to the seminar, and with the enthusiasm of those in attendance. He said it was good to see city officials and community leaders involved. He said partnerships between the community, the government officials, the Chambers and tourism boards will lead to better trails within the community.

He said that the Crosby trail system was funded in a big way by the Department of Transportation through a federal grant of $700,000. In addition the Minnesota Department of Natural Resources provided a match to the DOT grant. All tolled, Crosby obtained about $1.2 million for the development of their trail system. Construction began in May, and Johnson said he will be attending the grand opening of the Crosby trail system on Friday.

Johnson said that Marquette has incredible trails, and he was enthused by the fact that the City of Marquette was endorsing the trails and working hard to develop and improve them. He said it’s good to see local governments realize the economic impact of the trails. He said Ishpeming also has a good trail system and strong local support for the system. According to Johnson, they have over 60 miles of trail developed so far. He said that Copper Harbor is quickly becoming a destination, and because of their quality website, they are attracting people from all over the United States. He pointed out that Houghton has wonderful trails as well.

Johnson likes to refer to the quickly expanding trail systems from Minnesota through the Upper Peninsula and Northern Wisconsin that are developing as the “Iron Curtain.” He said that so many of the former mining communities are developing trails that they collectively are becoming a huge draw for cyclists from all over.

He said that the market is already blossoming regionally, and he believes that the area would greatly benefit from creating a good trail system locally.

After the presentation, there was a brief question and answer session. The concept of multi-use trails was also discussed. It was made perfectly clear that most of the uses are not compatable, and the same trails are generally not acceptable from one sport to another. It is very important to plan the trails with safety and enjoyment in mind. A good trail for one sport isn't necessarily an acceptable trail for another.