,,...... I...... ,...... ,...... , . . , , ...... , . , , . . , , , ......

COMPREHENSIVEECONOMIC DEVELOPMENTSTRATEGY SIXCOUNTY SOUTHERNALLEGHENIES REGION

PREPARED BY S. PATZ& ASSOCIATES,INC.

PREPARED FOR SOUTHERN ALLEGHENIES PLANNING& DEVELOPMENTCOMMISSION

JULY2002 Comprehensive Economic Development Strateqy Six County Southern Alleghenies Region

Prepared for:

Southern Alleghenies Planning and Development Commission

July, 2002

!

S. Patz c Associates, Inc. 1039 Sterling Road Suite 201 Herndon, VA 20170 ......

* ......

I

PAGE Section I : Introduction...... i Overview of Region ...... ii Section 11: Analysis ...... II- 1 Current Economic Factors ...... 11-1 Regional Summary ofkonomic Overview...... II. Economic Linkages and Multiples ...... 11-6 Producers Serving the Region ...... -7 Impact of Punbases of Input Supplies ...... 9 Conclusions...... - 10 II- Inhstructure ...... 11-12 Transportation Planning...... 11-12

SAP &DC RPO ...... ~ ...... 11-12 . Johnstown Metropolitan Planning Organization...... II- 13 Metropolitan Planning Organization for Blair County/Altoona MSA...... II- 13 PentiDOT Transportation Improvement Program (TIP) Process...... i ...... II- 14 Highways in the Region ...... II-.. 16 Airports ...... 11-23 Passenger Rail Service...... -28 .) Freight Rail Service ...... II -29 Inner-City Bus Service ...... -3 1 Rapid Transit...... 11-3 1 Public Water ...... 11-32 Sanitary Sewer Service ...... 11-34 'Natural Gas Service ...... 11-37 Electric ...... 11-37 Telecomunications Infimtructure...... 11-37 Land Use ...... 11-38 Natural Resources ...... 11-40 Recreation Areas ...... 11-42 Economic Trends and Analysis ...... 11-46 ... Population ...... 11-46 Household Population ...... II -48 Age Distribution of Population...... 11-50 Households and Household Size ...... ;...... 11-5 1 Household Income Levels ...... II-53 summary ...... 11-54 Demographic Projections ...... 11-54 Population Projections ...... 11-55 Households...... :...... 11-55 Housing Units: Type and Tenure ...... :...... 11-55 Employment Trends ...... 11-59 .. Labor Force Analysis...... 11-59 ..... Occupation ...... :......

TABLE OF CO

Page

Analysis of Job Categories ...... ii-68 Tourism Employment ...... 11-68 Lodging Employment Trends ...... 11-69 Lodging Industry Wages ...... 11-70 Eating and Drinking Place Employment...... 11-7 1 Retail Trade Employment Trends ...... 11-72 Retail Trade Wages ...... II-73 Wholesale Trade Employment Trends ...... 11-74 Manufacturing Employment Trends ...... 11-76 Transportation, Communications. and Public Utilities Employment Trend ...... 11-80 Services Sector Employment Trend ...... 82 Finance. Insurance. and Real Estate Employment Trend...... -11-86 Construction Sector Employment Trend ...... 11-88 Mining Sector Employment ...... 11-90 Agricultural Sector Employment ...... 11-90 Hardwoods Industry...... 11-92 Economic Development Focus Areas ...... II- 94 Tourism ...... -94 f ..... i Strengths and Weaknesses...... - 100 Hotel Room Additions 1995-2001 ...... 11-102 Proposed Hotel Projects...... 105 Retail Industry ...... -II- 106 Industry Development ...... II-108 Economic Development Programs ...... 1[-1 13 “High Tech” Business Location ...... II-115 Colleges and Universities ...... II- 117

Section III: The Southern Alleghenies Region CEDS Vision Statement...... h1-1

Section IV: Implementation Strategy...... 1v-1 Introduction...... 1v-1 Objectives ...... N-1-33

Section V: Evaluation...... V-1 Performance Measures ...... V-1

Appendix-A ...... A-1 Table A-1 ...... A-2

1 ......

...... '.1 TABLE OF CONTENTS MAPS /I ... Map A: Mid-Atlantic Setting ...... 111 Map B: Transportation Routes ...... II -17 Map C: Airports ...... 11-25 Map D: Freight Lines...... 11-30 Map E: Water Supply Service Areas ...... 11-33 Map F Sanitary Sewer Service Areas' ...... 11-35 Map G: Land Use ...... 11-39 Map H Natural Resources ...... 11-4 1 Map I Outdoor Recreation Areas ...... D-43 Map J Population Centers...... 11-47 Map K: Health Care System ...... 11-85 Map L Brownfield Sites ...... 11- 109 Map M: Industrial Opportunities ...... 11-111 Map N: Educational System ...... 11-118 ......

Page Table 1: Composition of Employment to Produce Output in the So . Alleghenies Region .....II- 8 Table 2: Composition of Employment to Produce Inputs for Other Sectors in the Region .... II-9 Table 3: Composition of Economic Impacts on the So .Alleghenies Region ...... 11-11 Table 4: TIP Funding for the So . Alleghenies Region ...... - 16 Table 5: Population Trends by County...... 1t48 Table 6: Trends by Household Population by County ...... 1149 Table 7: Trends in Populationby Age ...... -50 Table 8: Household Trends by County...... -52 Table 9: Average Household Size ...... -52 Table 10: Distribution of Household by Income Category ...... 11-53 Table 11: Comparison of Median Family Income by County ...... a-54 Table 12: Population and Household Projections by County ...... -56 Table 13: Trends in Housing Unit Development by Type and Tenure ...... II-57 Table 14: New Housing Unit Projection by Corunty ...... -58 Table 15: Trends in the Number of Persons in the Civilian Labor Force by County ...... 11-59 'Table. 16: Number ofUnemployed Persons in the Civilian Labor Force ...... 11-60 Table 17: Trend in Unemployment Rate in the Civilian Labor Force by County ...... 11-6 1 ...... Table 18: Distribution of Labor Force by Occupation Category, 2000 ...... 11-62 ... 1 Table 19: Distribution of Labor Force by Occupation Category, 1990 ...... 11-63 Table 20: Ranking of Labor Force by Occupational Grouping ...... 1145 Table 21: Distribution of Labor Force by Private Sector, Public Sector, & Self Employed vs . Payroll Employment ...... 11-66 Table 22: Trends in Total At-Place Employment (jobs) ...... II-67 Table 23 : Trends in Job Distribution by Sector...... 11-68 Table 24: Trends in Lodging Employment by County, 1997-2000...... 11~9 Table 25: Distribution ofhdging Employment, 2000 ...... 70 Table 26: Trends in Average Annual Wages in Lodging Industry ...... 11-71 Table 27: Employment Trends in Eating and Drinking Establishments...... II-72 Table 28: Retail Trade Employment Trends by County ...... II-73 Table 29:Trend in Annual Average Wages in the Retail Trade Sector ...... -74 Table 30:Trends in Wholesale Trade Employment ...... 11-75 Table 3 1: Trends in Average Annual Wages in Wholesale Trade Sector ...... 11-75 Table 32: Manufacturing Employment Trend...... 11-76 Table 33: Trend in Average Wages in the Manufkcturing Sector ...... U-80 Table 34: Trends in T.C.P.U. Employment...... 11-81 Table 35: Trends in Average Annual Wages in T.C.P.U. Sector ...... 11-82 Table 36: Services Employment Trend ...... 11-83 Table 37: Trends in Average Annual Wages in Services Sector ...... D-86 Table 38: F.1;R.E. Employment Trend ...... -87 Table 39: Trend in Average AnnuaI Wages in Services Sector...... - 88 Table 40: Trends in Construction Sector Employment ...... -89 Table 41 : Trends in Average Annual Wages in Construction Sector ...... 11-90 Table 42: Trends in the Fanning Sector ofthe Economy ...... -92 Table 43: Trends in the Hardwoods Industry ...... 11-93 TABLE OF CONTENTS TABLES (continued)

Page

Table 44: Tourism-Related Organizations ...... 11- 10 1 Table 45: Distribution of Hotel Rooms by County ...... 11-102 Table 46: Trends in New Hotel Room Additions by County...... II-1 03 Table 47: Hotel Occupancy and Average Room Trends ...... 104 Table 48: Anchor StoresBig Box Retailers ...... - 11-106 Table 49: Partial Lost of Newer or Most Active Industrial or Business Parks ...... II-110 Table 50: Organizations Supporting Industrial Development...... II-I 12

[CEDS.toc] INTRODUCTION

The Comprehensive Economic Development Strategy (CEDS) for the Southern Alleghenies Region in Central Pennsylvania was prepared by S. Patz & Associates, Inc. based on detailed input fiom senior staff of the Southern Alleghenies Planning and Development Commission (SA & PDC) and senior individuals representing economic development organizations, planning commissions and key business owners in each of the six counties throughout the region. The purpose of the CEDS is to provide detailed economic data and andysis to guide the economic growth of the region in terms of setting strategy to create jobs, foster a more stable and diversified regional economy, and improve living conditions for residents of the region. The CEDS will be used by public officials to promote sustainable economic development, foster effective transportation systems, enhance and protect the natural environment, and balance resources through sound management of development.

These are lofty goals and objectives. They suggest a significant role for the CEDS in future public investments for economic development. The importance of the CEDS became even more pronounced in 2001, when numerous communities in the Southern Alleghenies Region realized plant closings and significant job losses. These business losses presented a fact long realized but not fully dealt with by public officials-- the reliance on the manufacturing sector of the regional economy to provide i economic/job growth was not working and will not work in the future, as many of the decisions regarding these companies are being made from outside the region and are based on national economic trends, not local issues.

Thus, the assignment became clear that a strategy for regional economic growth and stability must be more diverse than past trends and must overcome past “prejudices” that manufacturing jobs represent the best option in terms of wages and spin-off impacts within the economy.

Given this fact, the preparation of the CEDS focused on detailed economic and market data that clearly identified the issues affecting economic growth in the region, which in turn, will serve as a basis for the development of a strategy for a more diverse future regional development and growth. The CEDS provides all of the basic data required by EDA for assignments of this nature. A major feature is a detailed analysis of the linkages among local industries and the impacts of the various industrial sectors within the region, Le., which industries provide the largest spin-off or “ripple” effect within the region and thus generate the most “off-site” jobs. This analysis, along with basic economic data, will provide a clear picture of the issues that need to be addressed to allow for sustainable economic development and a better quality of life for citizens of the six-County Southern Alleghenies Region. i The report to follow is presented in five sections. Section I is the overview of the CEDS planning process.

i Section I1 is the Analysis Section. First, the infrastructure of the region is discussed, including utilities, highways, airports, natural resources, and environment. These data show areas within the region that are readily available for development, but also, and as important, areas with development constraints. Also included in Section I1 are detailed analyses of the economic trends in the region, which identify community development problems and opportunities. These are based on interviews with public officials and major business owners in the region, among others. The background and history of the economic development in the region are presented, including a discussion of demographic trends, labor force, jobs, and the economy. These data clearly show some of the problems that need to be overcome, as the overall region has experienced a population loss and minimal job growth in recent years; the population loss in the region was caused by population declines in Blair County and Cambria County. The body of Section I1 analyzes trends for the region. More detailed data for each County is presented in the various appendices.

Section I11 of the CEDS sets forth a vision statement for the Southern Alleghenies Region, with goals and objectives for taking advantage of economic development opportunities and, thus, providing input on recommendations geared to solving problems facing the region. The vision for the region is unique as it shows a need to rethink current strategy regarding public investment initiatives. ,’? Section IV presents an Implementation Strategy. This includes an action plan, with recommended projects to implement the stated goals and objectives related to the vision statement.

Section V presents the plan for future evaluation of the CEDS. Performance measures are suggested that can be used to periodically evaluate the extent to which the goals and objectives of the CEDS have been met.

Overview of Repion

The Southern Alleghenies Region is composed of six counties in south-central Pennsylvania, within the Mid-Atlantic area of the United States (see Map A: Mid- Atlantic Setting). The counties comprising the region include Fulton, Huntingdon, Blair, Bedford, Somerset and Cambria. The six counties are marginally linked together but are defined as one of ten planning regions in the State of Pennsylvania. The historic rationale for creating this planning region was related to the path of the Pennsylvania Turnpike, which crosses four of the six counties - Huntingdon (1-76 just touches the county), Fulton, Bedford, and Somerset. Cambria County has close linkages with Somerset County and Blair County has close ties with Bedford and Huntingdon. Thus, the regional significance.

.. 11

. ..

‘1 ‘1 The majority of the region is rural and forested, and the total land area is 3,400

, square miles. The only geographic factor linking all counties in the region is the Allegheny Mountain Range of the Appalachian Mountains, with some mountain ridges in each of the six counties.

Some counties in the region also have strong linkages with counties or cities outside the region in addition to local economic ties. For example, Somerset County and Cambria County are often linked economically to the Pittsburgh area on the west. Fulton County is often strongly linked to Franklin County to the east and to counties in Maryland to the south. These economic ties are due to the larger and stronger economies of the Pittsburgh region and WashingtodBaltimore region. Within the Southern Alleghenies Region, Johnstown and Altoona are the largest urban areas, but both are losing population and jobs.

Ironically, while the Allegheny Mountains are the one common geographic factor, the ridges of this range often serve to divide the counties, making road access between them difficult, especially during times of poor weather and especially in an east- west direction. These conditions are not factors affecting ties with the Pittsburgh and suburban Maryland counties.

Interstate 70, the Pennsylvania Turnpike 0-76 and I-7O/I-76), and 1-99 are interstate highways running through the region. U.S. Route 22, U.S. Route 30, and U.S. Route 219 are important North of the region, 1-99 is being extended to 1-80, which will give the region slightly quicker highway access to markets such. as New York City (1-80 runs right into New York). There are no major airports in the region, but the Johnstown- Cambria County Airport and the Altoona-Blair County Airport provide scheduled commuter air service to Pittsburgh. Significant investments have been made to the aforementioned airports, with more planned.

Sections of U.S. Route 22, 1-99, U.S. Route 219, and U.S. Route 220 in the Southern Alleghenies Region are part of the Appalachian Development Highway System (ADHS). Portions of these highways in the region still neid to be upgraded. At the current pace, completing all of the ADHP sections in the Southern Alleghenies region is likely to take at least 12 more years and maybe 15 or 20 more years.

The geography of the region includes a mix of low, rugged, mountain ranges, rolling countryside, and river valleys. A number of river and creeks run through the region, with the best known being the Juniata River, which runs through Huntingdon and Bedford counties. The scenery attracts tourists from the more densely populated areas of Harrisburg, Pittsburgh, and Washington, D.C. areas. The 30-mile-long Raystown Lake, the most important natural feature in the entire region, provides 8,300 surface acres for water-based recreation including unlimited horsepower boating. The lake was created by the damming of the Juniata River and opened in 1976.

The climate of the region is known as humid continental, but has some characteristics of a mountain type climate. It is relatively cool at higher spots in the

iv . ... ‘$ ‘$ region, with snow in the winter and relatively cool summers. Tourists often visit the .. region in the summer to escape from much hotter weather in places like Washington, D.C. and its suburbs. There are three ski areas in the six-county region.

The history of the region is linked to coal, steel, railroads, and agriculture. The region had numerous mines and huge steel mills during peak periods in those industries. The coal and steel industry in the region declined sharply in the 1980s, with only limited activity in these industries remaining. A stronger, more diversified regional economy emerged since 1990, but there are a still a number of major manufacturing employers in the region that lend risk to the regional economy because of their uncertain future. The region today features a mix of jobs in manufacturing, service industries, retail and wholesale trade, and government.

There are two cities in the region with a population of over 20,000 - Johnstown in Cambria County and Altoona in Blair County. At the time of the 2000 Census, Altoona had a population of 49,523, Johnstown had a population of 23,906, and their combined population of 73,429 represented approximately 15.5% of the regional population. Both Cambria County and Blair County have experienced some economic loss from the decline of certain industries, Johnstown more than Altoona. Altoona lost over 600 manufacturing jobs in 2001. Johnstown has never fully recovered from the loss of Bethlehem Steel in 1992, but the natural environment of that county has greatly improved, because the steel industry contributed to air pollution.

The entire region has a manufacturing base and strong desire to maintain and expand manufacturing jobs. Most local manufacturing firms have marginal ties with other firms in the region and companies have located here due to: (1) quality labor force, (2) low cost of doing business, (3) historic location of company in the area, and (4) quality of the highway system, particularly the Turnpike.

With all that stated, it is fully noted that the region’s internal ties are strong in some instances and non-existent in others. However, the lack of strong ties between some of the counties comprising the region are not a determinant towards growth and have not been a negative factor in the region’s economy. It does however provide a bigger challenge in creating a vision for the region, and, as will be presented, create a necessity for a diverse set of implementation recommendations.

In general, the Southern Alleghenies Region is a relatively rural region, close to the large Pittsburgh area on the west and not far from the State Capital in Harrisburg on the east. The outer areas of the Washington metro area are only a one-hour drive from parts of the southern end of the Southern Alleghenies Region, and the significant growth and expansion of the Washington region westward will in time provide a stronger economic influence locally than from Pennsylvania cities.

V The Southern Alleghenies Region lies in close proximity to larger, expanding urban areas, but is still hlly separated from these areas. It is a “stand-alone” region that is striving to build a stable economy after the significant downturn in steel and coal during the 1980’s. The analysis in Section I1 will show that the industrial markets of the 1990’s and 2000’s are not strong enough to establish a stable local economy. Thus, continued economic diversification, while not easily accomplished, is required. Economic growth and stability over the next five to ten years must be based on local initiatives, not outward expansion from nearby metropolitan areas.

.. . . .i

vi ..

SECTION 11: ANALYSIS

Current Economic Factors

The analysis to follow was based on market and economic data from two primary sources: (1) detailed interviews with professionals in the field in each County, and (2) published census, employment and labor force data. Published data provides the best source of local economic trends. However, these data are often one or more years old, but more important, the day-to-day factors affecting the economy are often hidden in these data.

Our research determined that significant problems exist locally, based largely on the 2001 national recession, and the affect of that downturn, albeit reported by national leaders to be small and presently over, on the manufacturing sector of the Southern Alleghenies Region.

Thus, prior to the detailed description of the region, with its attributes and economic base, the following subsection presents some of the key economic issues facing . .. ; 't each County in the region. These issues need to be identified prior to the ability to fully 'I. . ... ,I understand current published secondary economic data, as presented and described later in this section.

0 Bedford Countv. Bedford County's economy has been relatively stable and local officials successfully added a new industrial park in 1999, the first true industrial park to be built in the County. That business park attracts considerable development and is a showpiece for the region. The park has a large vacant building and additional land to market. Land sales and development has slowed in 2000/01 due to national economic trends. A large local employer, JLG, closed a plant, which resulted in sizeable job losses.

There is a large, vacated property in Bedford County, the former Bedford Springs Hotel, that developers are evaluating for a major redevelopment program, using a combination of demolition, renovation, and new construction, with the end product being a modem resortkonference hotel. This will provide a significant boost to the County's tourist base and economy.

0 Blair Countv. In Blair County, one of the most important short-term economic issues is job losses, mostly in the manufacturing and transportation sectors. In 2001, a number of significant employers announced that they would be closing down certain operations and others did permanent downsizing. Many of the employees who lost jobs were union members and had relatively high-paying jobs. Some of the more significant job loss announcements are summarized below:

11- 1 Keystone Financial closed a back-office data processing center in Bellwood in June 200 1, resulting in the loss of 47 jobs.

0 Norfolk Southern Corporation planned to close its Hollidaysburg Car Shop in November 2001, but a petition to a court by objecting parties has prevented the facility from closing. If the company wins the case, the closing will result in the loss of more than 300 jobs in 2002.

0 The Butterick Company, a company that printed clothing patterns for at-home sewers, closed its Altoona manufacturing plant in phases during the second half of 2001, resulting in the loss of approximately 250 jobs.

0 C-Cor.net, a high-tech company headquartered in State College, Pennsylvania, in Centre County, just outside the Southern Alleghenies region, closed mandacturing facilities in State College (Centre County) and in the Artie Dillen Industrial Park in Tipton (Blair County), resulting in the loss of approximately 490 jobs between June and October 200 1. 0 Huck International Industrial Fastener Division shut down its Altoona plant in phases during the second half of 2001, resulting in the loss of approximately 170 jobs.

0 Westvaco shut down its coated paper plant in Tyrone in November 2001, resulting in the loss of approximately 265 jobs.

0 F. L. Smithe Machine Company, which manufactures high-speed machines that make envelopes, started a major down-sizing of its Altoona operation in mid- 1999, and laid off approximately 325 workers between then and the end of 2001.

Another economic issue in Blair County is the lackluster performance of the tourism industry there, as well as in the overall region. The tourism product of Blair County needs improvement. Hotel occupancy rates can be improved, although two new hotels were added since 2000. A significant amount of public investment was recently made in a new convention center in order to attract the convention market to the region, yet the use of the facility is reported to be relatively light. Data was not made available by management of the new convention center. However, the facility just opened in early- 2001 and the adjacent hotel opened in Fall, 2001.

A third economic issue is the need to revitalize the City of Altoona’s downtown area as well as some of its older residential neighborhoods. Most recent economic development has occurred outside the city in Blair County.

There is the need for 1-99 to be completed to State College in order for a marketing campaign to attract more high-tech industry in the Altoona area particularly to a proposed new researcWoEce park. The completed highway would mean better linkages to Penn State’s main campus in State College, just outside of the region.

II-2 .. .’ j 0 Cambria Countv. The primary concern facing Cambria County is population .. . loss. The county has been losing population for 20 years. The population loss hurts the local economy in many ways, including lower demand for all consumer goods and services, smaller labor force, etc.

Another economic issue facing Cambria County is job losses. The county has an aging industrial base, and is still making the shift from the “old” coal and steel economy to the ‘hew” economy. The county does not have an abundance of new high-tech and service industrial buildings to attract companies. In 2000, the RTI steel mill in the Johnstown area closed, resulting in the loss of 180 jobs.

A related economic issue to the job losses is the need for job training. When steel mills close permanently, some of the laid-off workers did not have the necessary skills to make the transition to jobs in “new economy manufacturing.”

As with other area jurisdictions, improving Johnstown’s highway linkages to Altoona and to Interstate 99 are key goals. Johnstown has good highway linkages to the south, with U.S. Route 219 connecting the city to Somerset and the Pennsylvania Turnpike, S.R. 56 and the US.Route 219KJ.S. 22 link to AltoondI-99 in Blair County.

The City of Johnstown’s downtown area and some older residential neighborhoods need additional economic revitalization. Most recent economic ......

’ , ’f development has occurred outside the city, particularly in Richland Township. Reuse of .... brownfield sites and closed industrial facilities, such as Bethlehem Steel’s Cambria Works plant, needs to be continued.

Community leaders want to formulate mechanisms to position Johnstown as a leading, high-tech, base of business and industry. Although manufacturing will still be an important component of the economic system, growth is planned to occur primarily in technological innovative services.

Concurrent Technologies Corporation prepared a Technology Vision Report. The primary goal of the vision is to secure a designation for Johnstown as a high-tech community, building a stronger base of knowledgeable workers in the high-tech industry, improving telecomm~cations/co~~cationsnetworks in the region and expand Johnstown’s defense procurement industry.

0 F’ulton County. The primary economic issue in Fulton County is its reliance on one major employer, JLG. The company laid off approximately 200 persons in 2001. While this is partly a cyclical phenomenon, a more diversified economy would prevent sudden spikes in unemployment.

Several other economic issues were identified. The first is to attract companies to locate in Fulton County’s new business park. Second, county residents would like more retail as the amount of shopping is limited. Third, an upgrade of the public water

11-3 system is needed in Fulton County in order to have the capacity for new residential development. Fourth, there is only one hotel in Fulton County and some business travelers visiting companies in the county prefer to stay in Hagerstown, Maryland.

0 Huntinpdon Countv. Huntingdon County would like to see more retail and service establishments start in the county. County officials have been trying to attract a Wal-Mart to locate near the county seat of Huntingdon. The county is too dependent on State College, Altoona, and Chambersburg for retail goods and services.

The county’s economy is also highly dependent on the manufacturing sector and needs to become better diversified in order to be more recesston-proof. In addition, the county has a strong dependence on large employers, primarily in the manufacturing sector. The unemployment rate in Huntingdon County is one of the highest in Pennsylvania. An important economic issue is attracting more companies to Riverview Business Center, the primary industrial park in the county.

There are several other economic issues. There is a need for high-speed Internet access in parts of the county. The tourism industry needs to be better developed, including new hotels and product improvements. The Route 453lRoute 22 link between 1-99 and Huntingdon needs to upgraded to better link some of the best tourist areas in the region to 1-99.

0 Somerset County. There are a number of economic issues in Somerset County. The unemployment rate is above the state and national average. The county is losing most of its residents who receive a college education because of a lack of job opportunities with high-level skills. There is also a desire to attract companies offering relatively high-paying jobs. The technology infrastructure of the county also needs to be improved.

Lack of public water and sewer capacity in much of the county is constraining economic development. County officials would like AMTRAK passenger train service to help the tourism industry. To spur economic development, US. Route 219 needs to be completed as a 4-lane divided highway south of the Pennsylvania Turnpike, linking the county to 1-68 in Maryland.

Regional Summary of Economic Overview

Based on the issues facing individual counties, some of the important economic issues facing the entire Southern Alleghenies Region are as follows:

0 Reliance on large employers has caused severe spikes in unemployment when any of these employers closed plants or had major lay-offs.

0 Significant job losses have occurred within the last 12 months. These job losses have primarily occurred in the manufacturing sector, due to permanent plant

11-4 .. .. , , . . ,

closings or downsizing. When these manufacturing employers close down, the laid-off workers often do not have the necessary skills to make the transition to a job in “new economy manufacturing.”

Companies looking at the region as a potential business location tend to be attracted by the low cost of labor. This contradicts with the desire by many residents to have economic development officials attract high-wage jobs.

0 There is very limited high-tech industry in the region, even though that industry was one of the fastest growing sectors of the national economy during the last 7 years.

0 Recent high school graduates not planning to attend college are reportedly not very interested in working in the manufacturing sector, which has traditionally been an important sector of the regional economy. This could potentially lead to future skilled labor shortages.

Lack of quality job opportunities for graduates from colleges or universities in the region means that many people migrate to seek employment in the Pittsburgh, Philadelphia, or Washington, D.C. metropolitan areas, thus starting families and establishing roots outside the region. t 0 The region has been experiencing population loss over the last 20 years, although the rate of loss over the 1990 to 2000 period was slower than between the 1980 to 1990 period. Most of the population loss has been in Cambria County, and the net loss in the region between 1990 and 2000 would have been even higher if some counties did not experience population growth. The loss of population in certain parts of the region is a negative factor in many ways, including: weak demand for retail development; new housing starts, etc.

The fortunes of the four-season resorts in the region, dependent on the ski season for a significant portion of their annual revenues, could be in deep trouble if the global trend towards warmer climate continues. Therefore, the region needs to continue to work on developing and expanding tourism during warm weather months, or establish different cold weather attractions besides skiing, to help offset any potential future decline in ski season demand.

0 Lack of public water and sewer systems has restricted new commercial and residential development in many areas of the counties comprising the region. New housing is needed to attract households from outside the region and stem . population loss.

11-5 ..

! 0 The two biggest cities in the region, Johnstown and Altoona, both have old downtown areas and old industrial areas that need commercial revitalization; some old buildings are eyesores and hurt the area image.

0 Lack of a major international airport in the region means that companies in the region as well as residents must depend on the two regional airports in Cambria County and Blair County as well as local service airports, or travel to airports in State College, Harrisburg, Pittsburgh, or the Washington, D.C. area.

0 The sections of the Appalachian Development Highway System in the region and a number of other highway projects need to be completed to spur economic development. These include completing U.S. Route 219 as an upgraded highway from the Pennsylvania Turnpike south to 1-68, completing U.S. 220 from the Pennsylvania Turnpike south to 1-68 in Cumberland, the upgrade of U.S. Route 219 in northern Cambria County, the upgrade of S.R. 56 between Johnstown and 1-99, the upgrade of U.S. Route 22 fiom Hollidaysburg east through eastern Blair County and Huntingdon County, and improved linkages between Johnstown and Altoona and between 1-99 and Huntingdon.

There are numerous issues to overcome in establishing a stable economy and a better place to live within the region. The following sections.of the report will provide more detailed analysis of these issues prior to the preparation of a strategy to reverse current negative trends.

Economic Linkages and Multbliers

These few paragraphs summarize our research into the economic structure of the Southern Alleghenies regional economy. The research focused on the “linkages” - that is, the flows of goods and services - between firms in different sectors of the regional economy, to analyze the degree of integration within the regional economy. If a sector in the region is closely integrated with other sectors, and linkages are strong, then changes in economic activity in that sector will have profound impacts on other sectors of the economy. But if a sector is loosely integrated, changes in that sector will only bring small impacts in other sectors of the economy. Understanding the structure of the regional economy in terms of these linkages is useful in recommending sectors to target for economic development in the region, in terms of their need for local products and services as inputs, and in terms of their ability to stimulate growth in other regional sectors.

In the process of production, firms in different sectors of the regional economy are linked together in supply and demand relationships, where one firm purchases and uses materials or services fiom others as inputs to its own production operations, and sells to others as inputs to their production. “Multiplier” data from the U.S. Department of Commerce allow the identification of the strength of these linkages between sectors on

11-6 a percentage basis. In this economic linkage analysis, employment is used to measure the strength of these economic linkages, rather than dollars paid for goods and services. The employment figures represent the equivalent number of annual employees it would take to produce a certain dollar amount of goods or services. These employment data have been reconstructed from a number of different sources and may not match the employment data reported elsewhere in this report. It is the relative structure of the economy as illustrated by these data that are most important here; the employment data themselves should be considered order of magnitude for illustrative purposes.

Producers Serving the Region

In this analysis, employment in a sector has been divided into two types. The first is employment to meet demands for production inputs for other firms within the region, which in turn generates employment at those firms or “spin-of3” employment. The second is “production” employment, which is the employment within a firm to produce output for sale to government, for export or for final use by consumers within the region. As shown in Table 1, total employment in the region is 178,000, of which 149,000 is private sector employment and 28,000 is government employment. Of the private sector total, 98,000 (66 percent) of the employment is involved in production for final sale or export, and 5 1,000 (34 percent) of the employment provides inputs to other sectors in the region. Those inputs are provided in response to demand from other sectors for these products produced in the region.

In the Southern Alleghenies region, private industrial sectors (manufacturing, construction, transportation and public utilities, and wholesale trade) provide a much greater share of total employment for regional inputs (46 percent) than do services (26 percent), as many services such as retail are geared toward directly serving consumers instead of producers. Another way of measuring the comparative impact is through local impact multipliers, defined as total sector employment divided by production employment. Industrial sectors produce relatively more inputs for other producers than do service sectors and therefore have the higher multipliers.

11-7 Further analyzing employment in private sector firms that produce inputs for other firms in the region, this employment can be divided into employment to produce inputs demanded by firms in industry. sectors and employment to produce input demanded by firms in service sectors. This analysis is shown in Table 2. In the Southern Alleghenies region, demand for inputs from service suppliers in the region are fairly evenly divided (in terms of equivalent employment) between industrial sectors and service sectors in the region, at about 17,000 each. Demand for inputs from industrial suppliers in the region is much more heavily concentrated (in terms of employment) within the industrial sectors, accounting for 65 percent of demand for industrial inputs in the region. Still, both industrial sectors and service sectors in the region demand more inputs (in terms of employment) from service suppliers in the region than from industrial suppliers in the region. Thus, it is likely that firms in the industry sectors in the region import a significant portion of their inputs from outside the region.

11-8 Impact of Purchases of Input Supplies

The preceding charts looked at the way the employment in the column sectors - industrial sectors or service sectors - are allocated in producing outputs, for final use (consumers, government, export) or inputs to other industrial or service sectors. Data below look at “spin-off’, the way that these demands for goods and services create new jobs in other sectors in the economy. This time, the impacts in the column sectors are upon those other sectors of the economy, not just the column sector alone. Above, entries in the industry column showed how industrial employment is used. Here, entries in the industry column show how many jobs are created in all other sectors in the regional economy due to demands for inputs to the industry sectors. A similar interpretation is given to the services sectors. Because the column contains a variety of data, it will be discussed in “buIlet” format. Bullet numbers correspond to numbers in the chart.

1. “Spin-off” is derived by applying tables of coefficients prepared to the U.S. Department of Commerce to employment data for the region. The creation of supporting jobs through production activity is surprisingly strong for services (34,600 jobs) compared to industry (16,500 jobs). Supporting jobs for services are fairly equally divided between industry and other services, while supporting ’I jobs for industry are two-to-one from other industrial sectors. Government

11-9 employment is also shown in the table as a supporting sector for industry and services, utilized two-to-one by services.

2. Adding the production employment - production of goods for fmal use by consumers, government use and export - to the total spin-off gives the total regional sector employment for industry (25,000 jobs) and services (55,000 jobs).

3. Separate sets of coefficients have been applied to determine the impact of the Southern Alleghenies region on the rest of Pennsylvania. Industry in the region has a major impact on the rest of the state through the purchase of imported inputs, to the extent of supporting 88,000 jobs outside the region, while the region’s services have only slight impact on the rest of the state (14,000 jobs). Adding the in-region spin-off to the rest of state spin-off creates a total spin-off of 182,000 jobs. Adding this in turn to in-region production employment gives a total impact of 284,000 jobs in Pennsylvania resultant from the economic activity in the region.

4. Multipliers in this analysis are expressed as the spin-off divided by the base production employment in the region. Both industry and services produce an in- region spin-off multiplier of about 1.8. This is unusually low for industry but strong for services, a rather unique case. But when the impact on rest-of-state impacts is concerned, regional industry impacts are very strong, at 2.66, meaning that 2.66 jobs are generated outside the region by every one industrial job in the region, for a total state impact of 4.4 for the region’s industry. By comparison, the impact of the region’s services appears confined largely to the region, since the rest-of-state multiplier for regional services is only 0.2.

The conclusion from the economic linkage analysis performed by S. Patz & Associates, Inc. is that the typical company in the region has probably not located to the region because of strong economic linkages with other firms in’the region, but instead for other reasons such as central location and highway system, low cost of doing business, or available labor force. Thus, this economic development strategy does not recommend targeting one particular type of manufacturing or other industry. Instead, it is more important for the region to concentrate on improving its image as a great place to do business in terms of quality of life, development-friendly attitudes, image, health care, higher education opportunities, housing, trained labor force, etc.

11- 10 i

11-1 1 INFRASTRUCTURE

This part of the Analysis Section presents data and andysis for a wide range of existing infrastructure within the Southern Alleghenies Region. Included is a detailed analysis of transportation facilities, public water and sewer service, natural resources and other factors that affect economic growth.

Transportation Planning

Transportation planning in the Southern Alleghenies Region is well organized. Three organizations coordinate long-term transportation planning in the Southern Alleghenies region: Southern Alleghenies Planning and Development Commission Rural Transportation Planning Organization; Johnstown Metropolitan Planning Organization; and Metropolitan Planning Organization for Blair County/Altoona MSA. The process is described below.

SAP&DC RPO

In cooperation with the Federal Highway Administration (FHWA) and the Pennsylvania Department of Transportation (PennDOT), the Southern Alleghenies Planning and Development Commission (SAP&DC) is an active Local Development District (LDD) that acts as a Rural Planning Organization and implements a Rural i Transportation Work Program for the following counties: Bedford, Fulton, Huntingdon, and Somerset. The Planning Commission of each of these four counties work together with SAP&DC to provide a rural transportation planning program and to achieve national, state, and local goals. The organization coordinates the preparation of the Southern Allephenies Planning and Development Commission 1999-20 19 Long-Range Transportation Plan.

The process used by the SAP&DC RPO ensures the quality and integrity of rural transportation issues and projects on the Statewide Transportation Improvement Program (STIP). The rural transportation projects are planned in conjunction with supporting projects that enhance regional economics and the safe and efficient passage of people and goods. The RPO establishes transportation priorities within funding limits, involves the public in the planning process, and selects transportation improvements with regard to the state and county priorities.

The RPO is comprised of the following committees: the Rural Transportation Technical Committee (RTTC) and the Rural Transportation Coordinating Committee (RTCC). The RTTC is responsible for providing input and expertise on transportation related issues in the four counties (Bedford, Fulton, Huntingdon and Somerset) along with developing the Transportation Improvement Program (TIP) for each county. The RTCC is responsible for providing additional input on transportation related issues and giving final approval on transportation related polices and procedures.

11- 12 : :\ Johnstown Metropolitan Planning Organization

The Transportation Planning Department of the Cambria County Planning Commission addresses the transportation planning needs of Johnstown and Cambria County, using a transportation planning process known as the Johnstown Metropolitan Area Unified Planning Work Program. The department serves as the study secretary of the Johnstown Metropolitan Planning Organization (JMPO). The program uses a combination of federal, state, and local funds for transportation studies and improvements. The planners prepare The Long Range Transportation Plan for Cambria Coun~,a requirement of the federal Transportation Equity Act for the 21" Century (EA-21) of 1998.

Recent transportation planning work conducted by JMPO includes the 2001-2012 Twelve Year Transportation Program Update for Cambria County, adopted in August 2000, and the 200 1-2004 Transportation Improvement Program (TIP) for Cambria County, adopted in 2001. The JMPO is just f~shingwork on the 2003-2006 TIP, which will be adopted later this year. The JMPO, by federal government mandate, must prepare and adopt a TIP that defines transportation projects to be implemented over a 4- year period. Highway, public transit, intermodal, bicycle, and other transportation projects which are to be financed with federal funds must appear on an approved TIP. Key regional projects recommended on the FY 2001-2004 TIP for Cambria County included the following:

0 U.S. Route 22 West ReconstructiodLighting; Right-of-way and Construction 0 U.S. Route 219 North Relocation -Engineering 0 PA Route 56 West End Improvements - Engineering 0 Hastings Industrial Park Access Road - Construction 0 PA Route 56 Kernville Viaduct - Construction

The JMPO is also involved in the project selection and submission process for the Transportation Enhancement Program, which has federal funding from TEA-21. Two recent projects that were approved, and which received federal funding, include enhancements to Clinton Street in Johnstown and improvements to the CANDX Trail.

Metropolitan Planning Organization for Blair CountdAltoona MSA

The Metropolitan Planning Organization for Blair County and the Altoona MSA (AMPO), served by the staff of the Blair County Planning Commission, is responsible for transportation planning for Blair County. The AMPO coordinates the Transportation Improvement Plan (TIP) and Long Range Transportation Plan processes. The TIP is updated every two years with 2001 being the last year of update approval and 2003 being the next update approval year. The Long Range TransDortation Plan for Blair Countv was last updated in 1997. As part of the TIP process, the AAMPO surveys municipalities, surveys economic development organizations, and other stakeholders such as trucking companies, during the month of June in the year prior to the TIP update being

11- 13 approved. The AMPO sends out brochures about the TIP planning process and after receiving feedback schedules appointments for individuals to provide testimony to the Secretary of Transportation at a public hearing held by the State Transportation Commission in the Fall of that same year. AMPO then analyzes the list of projects with PennDOT, refines it, and then submits the refined list to the central PennDOT in January of the year it will be approved. Most projects included in the TIP in Blair County are carryovers from prior years. For example, for the 2003 update, the AMPO has only included 4 new projects.

One highway project included in the proposed 2003 TIP for Blair County is $900,000 for engineering studies of the extension of Park Avenue. This highway project would help speed up construction of a $15 million highway project needed for a new office park in Altoona.

Another highway project included in the proposed 2003 TIP is improvements to the road to Altoona Regional Airport. The county has already resurfaced the road, but now there are plans to lop of the top of a hill and widen shoulder lanes. The road is currently two lanes, undivided.

PennDOT Transportation Improvement Program (TIP) Process

', ', I The Transportation Improvement Program (TIP) is a project specific, fiscally constrained, transportation program document that consists of the first four years of the PennDot Twelve Year Transportation Program. The TIP is constantly being revised and amended. The official TIP for each county in the Southern Alleghenies region is updated every two years. Approximately once every 18 months, each county in the region is asked to make a list of all their un-fwnded highway and bridge projects for the TIP and identifjr them on a map. Then the transportation planners in the relevant RPO or MPO meet with the county planners and discuss each project in order to establish priorities. Representatives of the transportation planning organizations and PennDot then meet to put together a prioritized program for the region that falls within the funding budget, with PennDot estimating the cost of each project. Some of these improvements have a direct impact on economic development, such as a new access road to an industrial park or widening a road to relieve congestion, while many just improve the quality of life in the region by making roads safer.

By February in the funding year, the region is required to have a draft TIP program that is then reviewed by elected officials, economic development representatives, and other community representatives. Typically, there is not sufficient money to fund all projects, so officials of each county have to prioritize their desired projects. Once the counties all agree on the draft program, it is submitted to PennDot in Harrisburg in March and then is usually approved by June or July.

II-14 1 Funding of transportation projects is based on TEA-21 authorization levels and is allocated among the individual planning regions according to an urbdrural distribution that has been mutually agreed upon by Metropolitan Planning Organizations, Local Development Districts (designated as RPOs by PennDot), the State Transportation Commission (STC) and PennDot. The total pool of money available to the State of Pennsylvania is distributed in the following manner:

a A total of $25 million annually in highway funding will be reserved for economic development opportunities statewide. Decisions on how to utilize this funding will be at the discretion of the State Secretary of Transportation in consultation with the State Transportation Commission.

0 An additional $25 million year in federal hnding will be reserved for flexing to transit agencies in the state.

0 A total of 20% of the remaining balance of total funds will be reserved for distribution by the Secretary of Transportation, in consultation with the State Transportation Commission, to offset the impact of high-cost projects (spikes), which are beyond the region’s base allocation.

a The remaining 80% will be distributed among the urban and rural areas based on the average of the region’s population, lane miles, and vehicle miles of travel. Within each classification (urbdrural), the funding will further be subdivided based on lane miles within the rural planning regions and lane miles and vehicle miles of travel within urban planning regions.

Based on funding mechanisms, the Southern Alleghenies region receives over $400 million dollars of state and federal funding each year for various transportation improvement projects, including capital projects, safety and mobility initiatives, state bridges, local bridges, maintenance betterment, and transportation enhancements. Some of these projects are carry-overs from prior TIPs because they require either multi-year funding. Amounts can vary sharply between TIPs as additional federal funds may be specially earmarked for certain projects in one TIP but not the next. The funding levels in the two most recent TIPs for the Southern Alleghenies region, 1999-2002 and 2001- 2004, are summarized in Table 4. Funding requests for the 2003 TIP have been submitted but are not yet approved. The Johnstown MPO has requested approximately $108 million and the Altoona MPO has requested approximately $65 million.

.. r; . . ..’

11-15 Highwavs in the Region

The highway network in the Southern Alleghenies Region is very important to economic development. The region’s interstate highway system is excellent, including parts under construction. The secondary highway system needs improvement in various areas for additional economic development to occur.

Except for interstate highways and some of the national highways, much of the region is served by undivided local roads. Some of these roads traverse mountain ridges, twisting and turning, making access slower than what the actual distance between two points would seem to indicate. The region’s interstate and national highway network carries a great amount of commercial truck traffic transporting goods as well as personal vehicles operated by work commuters, long-distance travelers, and leisure tourists visiting the region.

The region is served by three interstate highways: the Pennsylvania Turnpike (I- 76), 1-70, and 1-99. There are also a number of highways that are part of the National Highway System, including U.S. Routes 30, 22,219,220, and 522. These transportation routes are shown on Map B. Cambria County and Huntingdon County are the two counties in the region that have no interstate highways.

11- 16

Sections of U.S. Route 22 (“Corridor M’), 1-99 (“Corridor 0),U.S. Route 219 (“Corrridor N”), and U.S. Route 220 (“Corridor 0”)in the Southem Alleghenies Region are part of the Appalachian Development Highway System (ADHS). Portions of the ADHS in the region still need to be upgraded. Most of the ADHS in the region is eligible for funding through the Appalachian Development Highway Program (AD”). The ADHP is a road-building program started in 1964 with the intent of helping to break Appalachia’s regional isolation and pockets of poverty and to encourage Appalachian economic development. Administered by the Appalachian Regional Commission (ARC), the ADHP has been authorized to develop a network of 3,025 miles of corridor roads through the Appalachian regions in the following states: New York, Pennsylvania, Maryland, West Virginia, Virginia, Kentucky, Ohio, North Carolina, Tennessee, South Carolina, Georgia, Alabama, and Mississippi. The ADHS is 80% complete as of the federal government’s FY 2002. Over $5 billion of federal funds have been spent to date on this highway network that connects 13 states. The Transportation Equity Act for the 21’‘ Century (TEA-21) authorizes a minimum or base annual allocation of federal funds of $450 million per year during the period federal FY 1999 to FY 2003 from the Highway Trust Fund. However, the total amount is often higher based on earmarked special allocations lobbied for by U.S. Representatives or Senators from the region. For example, in FY 2002 (October 1, 2001 to September 30, 2002), the total amount of federal funds designated for the ADHP was $650 million. Each state in the region receives an allocation based on a set formula - Pennsylvania’s allocation is currently 26 percent of the $450 million base amount.

According to a representative of ARC, the uncompleted parts of the ADHS in the Southern Alleghenies Region are not high priority except for that short stretch of 1-99 now under construction north of Tyrone to the Blair County-Centre County line. That stretch of U.S. Route 22 from Hollidaysburg (Blair County) east through Huntingdon County and ending at Lewistown in Mimin County is the lowest priority in the State. However a 3.5-mile stretch of U.S. Route 22 from the western Cambria County line eastward as well as completions of other parts of U.S. Route 22 west of Cambria County (outside region) is ranked third in priority behind completion of 1-99 to 1-80 (outside region) and completion of U.S. Route 15 north to New York in Tioga County (outside region). In addition, the completion of U.S. Route 219 as an upgraded highway south from 1-70 to 1-68 in Maryland is ranked fourth in priority. Completing all of the ADHP sections in the Southern Alleghenies region is likely to take at least 12 more years and maybe 15 or 20 years. U.S. Route 220 south of Bedford is part of the ADHS but is not eligible for upgrading using part of the $450 million because a highway project outside the region, “0-I” which would connect 1-99 in Centre County to 1-80 in Clearfield County, was substituted for that project.

1-70 intersects with the Pennsylvania Turnpike at Breezewood in Bedford County and msin a southeasterly direction from Bedford County through Fulton County and then south into the State of Maryland, linking the Southern Alleghenies Region to Washington County, Frederick County, and Montgomery County in Maryland, before .... ‘i ending at the Capital Beltway that circles the Washington, D.C. area. Washington, D.C. ! .. is 120 miles from Breezewood. In the region, 1-70 also overlaps with the Pennsylvania

11- 18 ..:) Turnpike (1-76) as it runs west through Bedford County and Somerset County to the Pittsburgh area.

The Pennsylvania Turnpike runs 65 miles in an east-west direction across the lower half of the region, touching the southeast tip of Huntingdon County, and having interchanges at Fort Littleton (Exit 13) in Fulton County, at Breezewood (Exit 12) and Bedford (Exit 11) in Bedford County, and at Somerset (Exit 10) in Somerset County. The highway runs the entire length of Pennsylvania, between the New Jersey Turnpike (eastern terminus) and the Ohio Turnpike (western terminus), fiom Philadelphia to Pittsburgh.

The Turnpike is a 4- to 6-lane, divided highway with. medians and with access limited to interchanges. The original 160-mile stretch of the highway, which opened in 1940, is currently being reconstructed in phases, at a cost of nearly $5 million per mile. This massive reconstruction project started in 1999 and is expected to be completed by 2009. The area to be reconstructed includes the section that passes across the southern tip of Huntingdon County, as well as the sections that pass through Bedford, Fulton, and Somerset Counties.

The benefit to the region is that the highway will be wider, safer, and superior in . .. every way when.complete. A 2.8-mile bypass will be built over the Allegheny Ridge 1 above the Allegheny Tunnel in Somerset County and the existing tunnel at that location . ... will probably be abandoned in the future.

1-99, also known as Bud Shuster Highway, is the primary north-south route through the center of the region. The southern terminus of the highway is in Bedford. There is no interchange with the Pennsylvania Turnpike, travelers must drive through the community of Bedford a short distance before entering the Turnpike. The highway is 4- lanes divided with medians and with access limited to interchanges. The $400 million project, started in 1995, involved the upgrading of parts of U.S. Route 220 in the region to an interstate highway, as well as some new highway construction.

When complete, 1-99 will eventually run all the way fiom Bedford to Interstate 80 on the north in Centre County. The 52-mile stretch of 1-99 between the Turnpike and the community of Tyrone in northern Blair County is completed. The 19 +/- mile stretch of 1-99 between Tyrone and State College in Centre County, is under construction. 1-99 should be completed to Interstate 80 before the end of 2006. U.S. Route 220 is an extension of 1-99 south from Bedford to the State of Maryland line and via Cumberland and farther south. On the north, Route 220 extends to 1-80 at Milesburg and beyond. This north segment is being upgraded as 1-99, as the current 1-99 was the upgrade of Route 220 from Tyrone to Bedford.

’.! A related highway, “Corridor 0-l”, is a proposed interstate-quality highway . . ., connecting 1-99 and 1-80, and running between Port Matilda (Centre County) and

11- 19 .. Clearfield (I-80) in Clearfield County, just north of the Southern Alleghenies region. The best-case scenario for “Corridor 0-1” is for a construction start by 2007 and a completion in 20 11.

US. Route 22, part of the Appalachian Development Highway System, runs the width of Cambria County, Blair County, and Huntingdon County, providing the primary east-west access across these northern counties in the region. The section between Hollidaysburg (Blair County) and the east edge of Huntingdon County will be one of the last sections of the ADHS to be upgraded in Pennsylvania, using federal funds fkom the Highway Trust Fund. To the west of the region, US. Route 22 is mostly upgraded, and runs into downtown Pittsburgh after passing through Indiana County and Westmoreland County. To the east of the region, the highway intersects with US. 322 in Lewistown and then runs southeast to the state capital of Harrisburg. Improvements are currently being made to U.S. Route 22 east of Hollidaysburg Borough, at a cost of $35 million. In Huntingdon County, at the intersection of U.S. 22 and PA 45, in the community of Water Street in Morris Township, a 1-mile highway improvement called the Water Street Bypass was recently constructed. Two lanes were relocated and a westbound climbing lane for trucks was added. There has been discussion of upgrading Pennsylvania Route 453 fiom the Tyrone exit of 1-99 all the way to the Water Street Bypass, where it will then link with U.S. Route 22, providing a faster, more direct link from 1-99 to the SmithfeWHuntingdon area of Huntingdon County.

U.S. Route 522 links with Interstate 70 in Warfordsburg in Fulton County, and then runs north through Fulton, intersecting with the Pennsylvania Turnpike at Fort Littleton, then north until it intersects with US. Route 22 east of Huntingdon in Huntingdon County. A number of upgrades have been made to Route 522 in Huntingdon County over the last few years and a number of other improvements are still taking place, such as replacement of the Blacklog Creek Bridge in Cromwell Township and reconstruction of part of Route 522 in South Orbisonia. US. Route 522 also runs southwards, out of the region, through part of West Virginia, and then down into Virginia, passing through Winchester, Front Royal, and Culpeper, before ending at U. S. Route 60 just west of Richmond.

U.S. Route 30 runs across the entire width of Somerset County, Bedford County, and Huntingdon County. This highway runs the entire length of Pennsylvania, from Philadelphia to Pittsburgh. U.S. Route 30 is truly a national highway because it runs from Atlantic City, New Jersey, to Portland, Oregon, although replacedoverlapped in many states by interstate highways. In the region, this old highway that runs over a number of mountain ridges, with steep grades, is most suitable for local trafic. In Bedford County, construction is underway on widening US. Route 30 to 5 lanes, from just east of Bedford, to just west of Everett. The reported total project cost is $60 million.

US. Route 219 msfiom Buffalo, New York, at the U.S. border south through western New York, central Pennsylvania, western Maryland, and the east side of West Virginia. In Central Pennsylvania, fiom south to north, the highway runs through ; ’;! . .... Somerset County, Cambria County, Clearfield County, Jefferson County (northeast tip),

11-20 Elk County, and Kean County. The highway has been designated as a principal arterial road on the National Highway System ("S). The portion located in Pennsylvania is on the Pennsylvania Priority Commercial Network (PCN).

In the Southern Alleghenies Region, US. 219 is an important transportation corridor between the Pennsylvania Turnpike in Somerset County and Johnstown, as well as Ebensburg in Cambria County. At the present time, U.S. 219 is a limited access, divided highway between the Turnpike and Ebensburg. However, U.S 219 abruptly stops being an expressway immediately south of Somerset and reverts back to a 2-lane, undivided, secondary road. However, a 5-mile stretch of the highway has been upgraded near Meyersdale but is separated by 10 miles of unimproved road from other upgraded sections to the north. Also, in northern Cambria County, north of Carollton, and then in much of Clearfield County, the route is still a 2-lane, undivided, secondary road.

A variety of economic development groups in the Southern Alleghenies Region are promoting the upgrading of U.S. Route 219 from Toronto, Canada down to West Virginia, as part of a larger, planned transportation corridor, called "Continental 1". . Continental 1 would extend from Toronto to Miami and is being promoted as a multi- modal international trade corridor. Groups in the region that support the project include Cambria County Business and Economic Alliance, Cambria County Commissioners, Somerset County Chamber, Somerset County Commissioners, and Somerset Trust, .. . among others.

.I Supporters of Continental 1 in the Southern Alleghenies Region believe that it will attract new commercial, hotel, and industrial development in Cambria and Somerset County, and also provide better economic linkages to Clearfield County and Interstate 80 to the north, and to Allegany County, Maryland and 1-68 to the iouth.

Many Pennsylvania companies export to Canada, so improved highway access to Ontario Province would enhance trading with Canadian partners.

Completing the part of Continental 1 in the region means having U.S. Route 219 be a 4-lane, divided, limited access highway the entire length of Somerset and Cambria counties. This project is unlikely to be fully completed until 2012, but it is 75% complete and remaining progress is being made section by section.

In December 200 1, PENNDOT held a public hearing on the alternative routes for a 10-mile stretch of upgraded U.S. Route 219 between Somerset and the Meyersdale Bypass; PENNDOT announced that construction on whatever route is selected was unlikely to begin before 2006. The location of the study area is shown below:

11-2 1 ..

U.S. Route 422 runs west of Ebensburg and links Cambria County to Indiana County, Armstrong County, Butler County, and Lawrence County, in Pennsylvania, and also runs west into Ohio, ending at Cleveland by Lake Erie.

State Route 56 links Johnstown to 1-99. The road is 2.lanes undivided for much of that route, and runs over a mountain ridge. The road also runs west of Johnstown into Indiana County. The Pennsylvania Department of Transportation (PedOT) has initiated a comprehensive environmental and engineering investigation of Route 56 through the West End of Johnstown, Pennsylvania. Improvements to Route 56 in the West End area have been discussed since 1965. Several preliminary studies were undertaken, with the most recent trafEc study being completed in 1998. That study, like the majority of studies before it, supports improvements (in some form) to Route 56 through the West End area.

Among the purposes of the Route 56 West End Transportation Improvements Project is to improve safety, access, and traffic conditions in the West End and the greater Johnstown area, while enhancing the quality of life, preserving community neighborhoods, preventing future traffic congestion, separating truck traffic from local traffic, and supporting regional economic initiatives. The environmental study related to the S.R. 56 highway project in Cambria County should be completed by December 2004. The project location is shown below:

11-22 AirDorts

.. ". Airports are growing in importance in the regional economy, primarily because of ,i ,i growth at Johnstown-Cambria County Regional Airport, and could make a much more important contribution in the future. There are 16 commercial airports in Pennsylvania and 143 general aviation airports, and the Aviation Council of Pennsylvania reports that statewide funding for airports has remained flat or has declined for a number of years.

There are no commercial airports in the Southern Alleghenies Region that provide national and international air linkages. The closest major airport is Pittsburgh International Airport. From Somerset Township, located by the Pennsylvania Turnpike in the western part of the region, it takes one hour to drive to the airport. From other parts of the region, the trip could be much longer. Harrisburg International Airport, closer than Pittsburgh International Airport to the east side of the region, offers flights to Philadelphia, Pittsburgh, Detroit, Chicago, Albany, New York City, Atlanta, Boston, and WashingtonDulles, among others. From Breezewood (Bedford County), the driving- time to Harrisburg International Airport is approximately one-hour.

The other alternative for residents of the region or visitors to the region is to fly into/from Dulles International Airport or Washington National Airport in Virginia. From any part of the region, these two major airports are located within two to three hours drive to the southeast.

While there are no major airports in the region, there are two regional airports and a number of general aviation airports (see Map C). The two regional airports are Altoona-Blair County Airport and Johnstown-Cambria County Airport. In addition, there

11-23 is a regional airport in State College, just outside the region. The airlines serving the i airports typically use relatively small turboprop aircraft. For example, U. S. Air-Express uses the 37-seat de Havilland Dash 8 turboprop to fly into University Park Airport in State College and uses the 34-seat Saab 340 to fly into Johnstown-Cambria County Airport.

The airports in the region are described below:

Bedford Countv Airport is a general aviation airport located in Bedford County along Business Route 220, just north of the Borough of Bedford near the town of Cessna. The airport is strategically located near both 1-99 and the Pennsylvania Turnpike. The airport currently has a 4,113-foot runway. An environmental impact assessment was recently completedsigned in March 2002 and construction is scheduled to begin later in 2002 on a 900-foot extension to the runway plus other improvements. This facility will continue to serve the needs of corporations in the area that have multi-engine turbo-props or jets. The extension will add significant capacity and make the airport safer. After the improvements, the runway will be able to support aircraft of 20,000 pounds.

Fulton Countv. There are no general aviation airports within Fulton County.

Huntingdon Countv Airport is a general aviation airport with a 3,120-foot gravel runway. The runway can only support small aircraft up to 12,000 pounds in weight. The airport is located adjacent to Route 522, approximately 5 miles south of the Borough of Mount Union. The airport was recently sold to a local fire department. The new owners plan to close the airport after a few years and convert it to open space for public event use. However, the airport received grant funding that requires that the runway remain open for a few more years. Huntingdon County economic development representatives indicated that the closure should not have a negative impact on economic development.

Altoona-Blair Countv Airport is a regional airport offering scheduled commuter service to Pittsburgh International Airport. The airport has two runways: one is 5,500-feet-long by 100 feet wide, and the other is 3,700-feet-long by 75 feet wide. U.S. Air-Express offers at least three direct flights per day from the airport to Pittsburgh on commuter aircraft and around three return flights per day.

Blue Knob VaIlev Airport is a small general aviation airport in Blair County, located eight miles south of the City of Altoona and seven miles northwest of Blue Knob Ski Resort. The airport has a 3,425-foot runway consisting of rolled slate. Hangars and tie-downs are available. Approximately 14 small planes are kept at the airport. The airport is privately owned and operated.

11-24 Cove Vallev Airport is a small general aviation airport, located ' approximately two miles from Williamsburg, which is on the east side of Blair County, near Huntingdon County. The airport has a 2,750-foot turf (grass) runway. The airport is privately owned.

Indian Lake Airport, which was a general aviation airport located 1.5 miles south of the junction of US. Route 30 and S.R. 106 in Somerset County, by the Indian Lakes summer home resort, has been closed for several years, but the 4,500-foot runway is still there.

Seven Springs Aimort is located off S.R. 31 in Seven Springs Borough near Seven Springs Resort and Hidden Valley Resort in Somerset County. The airport is located 17 miles west of the City of Somerset near the Somerset-Fayetteborder, The mountain airport is at a 2,900-foot elevation and is a seasonal operation open May through..November. Airside amenities include hanger and tie-down. Most users of the airport are leisure tourists flying personal aircraft.

Somerset Countv Aimort is a general aviation airport located 4 miles east of the City of Somerset, along S.R. 281, near the Pennsylvania Turnpike and U.S. Route 219. The airport has a 4,697-foot runway, passenger terminal, hanger, and fuel. Services include aircraft rental, aerial tours, aircraft maintenance, flight school, and aviation fuel. There are plans to expand the runway to 5,000 feet and . .. construct a new airport terminal. Somerset County Industrial Park is located 5 ! .. - miles from the airport.

Ebensburg AirDort is a general aviation airport located in Cambria County, approximately three miles southwest of Ebensburg, close to the intersection of U.S. Route 22 and US. Route 219. The airport, which is owned by the Borough of Ebensburg, even though it is located in Cambria Township, sits at an elevation of 2,099 feet and has a 1 15-acre site. Johnstown is located 19 miles to the south and Altoona is located 24 miles to the east. The Borough of Ebensburg owns approximately 185 additional acres near the airport. There is a paved 3,204-foot runway. Three hangars are located at the airport; several need upgrading. The Ebensburg Borough Council has considered closing the airport because the operation loses money, but state grant money used to extend the runway some years ago, prevents that from occurring. A group interested in leasing the airport is currently negotiating with the Borough.

.. :.. I . ...

11-26

John Murtha Johnstown-Cambria County Airport is the most successful airport in the Southern Alleghenies Region. It is a regional airport located 3 miles northeast of Johnstown and has three runways: 4,500 feet, 3,700 feet, and 7,000 feet. Over 100 aircraft are based at the field. The airport has a new commercial terminal. For most of the year, USAir commuter service offered five round-trips per day between the airport and Pittsburgh International Airport. The commercial passenger aircraft that come into the airport are Saab 340 Turboprops, seating 33 passengers. Approximately 45,000 ticketed passengers arrived or departed the airport in 2001. The airport sits on 1,200 acres and a significant amount of development has occurred around the airport, including Air National Guard, Marine Corps/Naval Reserve Center facility, and 876* Engineering Battalion facility. DRS Laurel Technologies, a federal govemment contractor, built a large manufacturing facility by the airport. The Johnstown Industrial Park is located several miles from the airport. A consultant is currently preparing a master plan for the airport. Airport improvements since 1996 include the following:

In 1996, the FAA awarded a $912,000 grant to finish the overlay and rehabilitation of the original 5,500-foot section of the 7,000-foot runway, completing Phase IV of the runway project. In 1997 and 1998, the FAA awarded a total of $1,995,000 in grants to expand and renovate the commercial terminal building, and to modernize security, baggage and ticket operations, and lounges. In 1997, the Army ReservedPennsylvania National Guard Johnstown Aviation Support Facility was dedicated. The facility has 60 full-time employees and includes a 20,000-square-foot training center, and a 93,000-square-foot hangar with a 66-foot high ceiling to house 20 aircraft, including attack helicopters and fixed-wing aircraft. The total project cost including sewer extensions was approximately $25 million. In 1998, the FAA awarded a $500,000 grant towards construction of a new aircraft rescue and fire-fighting building. In 1998, $1,740,000 in federal funds were allocated to upgrade water service to allow for additional growth around the airport, including private commercial development and military construction projects. In 1998, work began on the $14 million Marine CorpsNaval Reserve Center at the airport. This facility will house over 100 full-time personnel and include hangars for attack helicopters. In 1999, the $2.5 million passenger terminal was dedicated in August and the $5 million Air Traffic Control Tower was dedicated in December. The 258* Air Traffic Control Squadron was relocated to the airport, bringing 40 full-time jobs. In 1999, $6.2 million in federal funds was allocated for an Air National Guard Air Traffic Control Training Complex at the airport. In 1999, $6.3 million in federal funds was appropriated for an Army Reserve Maintenance Support Facility for the Central and Western Pennsylvania Army Reserve units.

11-27 ..

In 1999, the 876thEngineering Battalion’s facility, located across from the airport terminal, was expanded at a cost of $3.8 million. In 2000, $6 million in federal funds was appropriated for a four-position Advanced Automation System and Digital Airport Surveillance Radar, making airport safety comparable to international airports. In 2000, the FAA awarded a $293,000 grant for Phase TI of the installation of perimeter fencing and to design the rehabilitation of the taxiway. The annual federal entitlement for the airport is $1 million per year because of the military presence there. In 2000, funding was obtained for a $4.5 million National Guard Regional Maintenance Shop in order to consolidate maintenance done at scattered sites.

Universitv Park Airport (located outside the Southern Alleghenies Region) is located in State College in Centre County, the community where Penn State University’s main campus is located. The location is approximately 10 miles outside the northern edge (in Blair County) of the Southern Alleghenies Region. The airport has a modem terminal completed in 1993 and is served by Northwest Airlink (commuter), United Airlines, and U.S. Air-express. The airport has two paved runways: one is 6,700-feet long by 100 feet wide, and the crosswind runway is 2,350-feet long by 50 feet wide. Northwest Airlines offers direct flights between State College and Detroit (DTW). United Airlines offers direct flights between State College and Washington-Dulles International Airport (IAD). U.S. Air-Express offers direct flights between State College and Philadelphia and between State College and Pittsburgh.

Passewer Rail Service

Amtrak provides passenger rail service to stations in Huntingdon, Altoona and Johnstown. There are no stationshtops in Fulton County, Bedford County, or Somerset County. Connections are through Philadelphia or Pittsburgh.

Outside.the region, the closest commuter rail service to the Washington, D.C.area is available at Martinsburg, West Virginia, where persons can access Maryland Rail Commuter Service (MARC) on the Brunswick Line which has stops convenient to employment centers in Montgomery County, Maryland and terminates at Union Station in Washington, D.C., near the US.Capitol.

This service is only suitable for persons residing in southern Fulton County, as Martinsburg is about 45 minutes drive from southern Fulton County using 1-70 and 1-8 1. There were efforts to get service extended on existing rail line to Berkeley Springs, West Virginia, ,and to a station on the rail line in West Virginia across the Potomac River from Hancock, Maryland, but MARC planners indicate that this is unlikely to occur within the next five years because a study found that ridership would be moderate.

11-28 ..... Leaders in the region are supporting lobbying efforts for the Pittsb9ugh area to be ,' 1 one of the states that wins the competition for part of nearly $1 billion in funds set forth for the first high-speed MAGLEV (Magnetic Levitation) transportation system in the United States by the TEA-21 Act. MAGLEV vehicles are capable of running at speeds in excess of 240 miles per hour. The project will be funded through the Federal Railroad Administration. The proposed corridor submitted in the proposal by The Port Authority of Allegheny County and MAGLEV Inc. extends from the Pittsburgh International Airport to Greensburg, with stops in downtown Pittsburgh and Monroeville. The line would then move eastward across the state to the metropolitan centers of the northeast including Johnstown and Altoona. A decision will be made in Spring 2003 whether the Baltimore area or Pittsburgh area will receive funding. If the Pittsburgh area is chosen, the Southern Alleghenies Region could be connected to this high-speed system within 10 years.

Tourist Railroads. The East Broad Top Tourist Railroad is located on Route 522 in Rockhill Furnace, 18 miles north of Fort Littleton (Turnpike Exit 13). During the summer and early fall, tourist train service is provided on a restored 5-mile segment of the original mainline, starting at Orbisonia Station. This privately owned, historical tourist attraction has been studied extensively by the state and federal government agencies and is considered one of the best examples of a regional narrow-gauge railroad in the nation. i The Johnstown Incline Plane is a vertical fixed-rail facility connecting the City of Johnstown and Westmont Borough in Cambria County. The Incline provides daily passenger commuting service to local residents and the Visitors CenterRestaurant on top of the Incline is a major tourist attraction. This tourist railroad is owned and operated by the Cambria County Transit Authority.

Freipht Rail Service

Active rail lines for freight rail service are available in five of the six counties in the region; only Fulton County does not have any rail lines. Freight lines in the region are shown on Map D. Railroads have declined in importance in the region as the steel industry and mining industry faded, generating only a fraction of the business of years past. Rail lines for freight service in other counties is summarized below:

In Bedford County, freight rail service is limited to a section of CSX line in the southwest comer of the county.

0 In Huntingdon County, there are rail lines passing through Mount Union and intersecting with Mapleton, Huntingdon, Spruce Creek, and Birmingham.

0 In Somerset County, a number of active lines carry freight service by CSX, Norfolk-Southern, and Wheeling and Lake Erie Railroad. Also, local rail feeder "I lines originating in Johnstown in Cambria County, run southward into Somerset . .. i County. There are also a number of active short-rail spurs.

11-29

. .., '; 0 Altoona, in Blair County, developed as city because of being located on the ., mainline of the Pennsylvania Railroad. The county has the most rail lines and freight rail service of any of the counties in the region. Norfolk-Southern is one of the companies owning or using rail lines.

0 Cambria County has a number of active rail lines. Historically, railroads served . the major industrial facilities in the Johnstown area and .coal mines in the northern part of the county. Conemaugh and Black Lick Railroad Company in Johnstown and Cambria & Indiana Railroad in Ebensburg are Bethlehem Steel's subsidiary railroads and connect with Norfolk & Southern and CSXT main lines in the county. Bethlehem Steel also has an intermodal service in Johnstown, where it provides track storage and outside open area loading from rail to trucks.

Inter-City Bus Service

Greyhound Lines provides limited inter-city bus service connecting the region to cities such as Washington, D.C., Pittsburgh, or Harrisburg. Some of the communities where it stops on various routes include Johnstown, Altoona, Tyrone, Somerset, and Breezewood.

Rapid Transit

There is no rapid rail system in the Southern Alleghenies Region. Cambria ,) County and Blair County have local bus service, mostly around the cities of Johnstown and AItoona.

The Cambria County Transit Authority operates a public transportation service, with routes concentrated in the Johnstown area, using a fleet of buses operating 15 fixed service routes. In 1996, the U.S. Dept. of Transportation gave a $1 million grant to the Authority .for the purchase of five 30-foot replacement buses, the replacement of nine above and underground fuel storage tanks, and installation of a storm water collection system by CCTA;s maintenance and bus storage facilities. The CamTran+ service operated by Cambria County Transit Authority has 5 fixed service routes, providing service to many Northern Cambria County Communities like Patton, St. Boniface, Hastings, Barnesboro, Spangler, St. Benedict, Carrolltown, Ebensburg & Cresson. CamTran also provides fixed route service from these communities to Johnstown. The routes are used for work, medical appointments, shopping trips, etc. Some of the routes are: Ebensburg to Johnstown; Patton to Ebensburg to Johnstown; Ebensburg to Cresson Shopper; The Loop - Shopping CART; and Patton to Ebensburg.

Rural transit service in Huntingdon County, Bedford County, and Fulton County, is provided by the Huntingdon-Bedford-Fulton Area Agency on Aging. The agency operates a shared-ride program and the demandresponse transit program transports persons with a wide range of needs, such as medical and social service appointments and grocery shopping. Transportation to senior centers is free and there is a small charge for i i other service. Reservations must be made 24 hours in advance. The service is used most often by seniors.

There is no scheduled bus service in Somerset County but the county operates the Somerset County Transportation System (SCTS), which is a shared ridership, demand response system. SCTS has 21 vehicles including 12-passenger vans and mini-vans, most being handicapped accessible. Riders must apply and meet certain eligibility criteria before they can receive transportation services. The SCTS operation is designed to serve low-income households age 18 to 59, seniors age 60+, and persons with medical problems. SCTS will pick up qualified passengers anywhere in Somerset County, with 24 hours notice. The main office of SCTS is in Somerset, but the organization keeps two vans in the Windber area in the north part of the county and also keeps one van in the southern part of the county. The Pennsylvania State Lottery pays the fare of seniors 65+.

AMTRAN provides the Altoona area with bus and van transit service. More than 27 buses are in the-fleet, with seating capacities ranging from 29 to 41. The area served ___"...... l.*...l...ll.l...... -.I.... "...... , .. _-,.^.+; ..,...... _. .. .- , , , by this transit company-- includes the City of Altoona, the Townships of Loganmd. Allegheny, and the Boroughs of Hollidaysburg and Duncansville. hTW's main departure and transit point is the Transit Center located on IOth Avenue in downtown Altoona. AMTRAN operates 11 regular bus routes, several. routes that will pick up passengers with advanced reservations, and two shuttle routes. One of the scheduled routes specifically serves Perm State University at Altoona. For the period July 2000 to June 2001, the system had ridership of 735,000 passengers. AMTRAN serves as a pilot site for a 5-track model for small urban transit management, and recently completed over $1 million improvements to the system including new passenger information technology, new communicationsinfrastructure and equipment, and fare collection equipment.

Public Water

Public water service is centered on the urbanized centers within the Southern Alleghenies Region (see Map E). Region wide public water service is not available. Community-scale, water authorities service rural areas across the region. Efforts are underway to review the feasibility of consolidating smaller water authorities to combine resources to create larger scale water authorities.

Cambria and Somerset sounties came together in 1999 to form the Cambria Somerset Authority (CSA). The CSA purchased a five reservoir and dam industrial water supply system covering over 5,000 acres of undeveloped land and water resources. The water system was formerly used by Bethlehem Steel. The sites include the Quemahoning Reservoir, Wilmore Reservoir, Hinckston Run Reservoir, Border Dam an Impoundment and South Fork Dam an Impoundment. As managers of an industrial water supply system and as a pubIicly formed Authority, the CSA has a mission to provide their water customers with recreation opportunities, water supply protection, economic development opportunities and long-term protection of local natural resources.

) . .. ..'

11-32 . . ._._". ,; Lack of public water is a problem in Somerset County, especially because there were a number of drought years. There are 30 water authorities and centralization is needed. Any company with water-intensive manufacturing operations would have to be turned away unless the company wanted to pay for the improvements. In 1995 and 1997, the Pennsylvania Department of Environmental Protection funded water and sewer studies. Somerset, the major employment center in the county, uses surface water supply and community wells - water is pumped nearly six miles from the mountain ridges west of Somerset. The prisons built in Somerset County have used up much of the excess water capacity.

Somerset County is taking an active role in addressing water supply needs in the County by undertaking a study to address the feasibility of a bulk water supply pipeline and treatment facility from the Quemahoning Reservoir located in northern Somerset County to Somerset Borough located in central Somerset County. The proposed pipeline would allow the County to be a bulk water supplier, supplying water to existing water authorities for distribution to citizens. Preliminary investigations call for a 2-million gallon per day capacity expandable to 4 million gallon per day. Companies needing abundant water supply could be attracted by availability. Paul Rizzo Associates did an extensive public water feasibirity study on this project.

Water Qualitv "f Non-point source pollution is largely responsible for the degradation of our surface waters. Mine drainage and runoff from farms, timber harvest sites and urban areas has had significant adverse impact on the quality of our streams. The construction of wetlands to filter pollutants from non point sources should be initiated or supported.

Coal refuse piles are scattered throughout the coal region of the Southern Alleghenies Region. These pollute the water resources and detract from the quality of life in communities where they exist.

Sanitarv Sewer Service

Sanitary sewer service is available in the major urbanized areas in the Region (see Map F). On-lot septic systems are utilized in a majority of the area in the region. Sanitary sewer service must be expanded to services areas on the perimeters of the urbanized areas in the region. Water quality and quantity problems are a major concern in the Region. Public drinking water supplies, public sewage systems and private septic facilities are inadequate in many areas. The development of programs to encourage the use of alternate sewage treatment methods may help. Communities also need help in locating and developing new sources of public water supply.

11-34

Bedford County

The Chestnut Ridge area of the county is served by a regional sewer system dedicated in 2000; the system serves 3 and one-half townships. The area is accessed by taking 1-99 to the Route 56 west exit and then heading west to Pleasantville. The problem with developing land in this area with commercial uses is that this area has some of the best agricultural land in Bedford County. Communities such as East St. Clair and Napier have unique soil and microclimate ideal for peach and apple orchards. King Township also has a sewer treatment system. Johnny Coral Construction has a facility there, just off 1-99 at the Imler interchange. Most of the townships in Bedford County have a sewer facility, of smaller scope. A large new employer in the county would probably necessitate a major expansion of the sewer system.

Seventeen communities in Bedford County have community water systems, but only about 10 percent of the county population is served by public water. The remaining 90 percent of residents receive their water from personal wells. Approximately one-third of all the public systems get their water from springs on side ridges of mountains. The other two-thirds receive their water from community wells or reservoirs. Bedford, Everett, and Saxton have reservoirs; they capture spring waters and then treat the water before it is pumped to homes. The communities do some river water withdrawal and treatment.

Fulton County

There is public water and sewer in the borough of McConnellsburg. However, the real problem is with the water supply system. The pipes are over 100 years old. The Borough Water Authority is in charge of the water system and wastewater treatment. Lack of sufficient water in the wells is another problem. The water authority has done some drilling to create new wells.

There is a public sewer system in Warfordsburg, near 1-70. However, that area has no public water. Knobsville also has a wastewater treatment plant. Two townships in the county are looking at constructing new wastewater treatment plants within the next five years, because old septic tanks are leaking. Old homes are located on half-acre lots and there is not enough land for septic systems to work properly. Most people building homes in rural areas use sand mound systems for sewage treatment at the present time.

Blair County

The capacity of public sewer treatment systems is being addressed. County planning officials did not know of any wastewater treatment system that has reached or is close to maximum capacity. Sewer lines were extended to the Westvaco Plant in North Tyrone, a major infrastructure investment, but the plant has since been closed.

11-36

The Altoona City Authority has sufficient public water capacity to support any development in the city. There are reservoirs, headwaters, and treatment plants. Blair County is well-positioned for attracting economic development needing water capacity. The water system was originally designed for the railroads.

Somerset County

The public sewer situation in Somerset County is similar to the public water situation in that lack of capacity is constraining economic development. There are 10 sewer authorities. The Pennsylvania Economic League just commissioned a study of the sewer capacity in Somerset County. The county is sparsely populated and much of the land in the county is not adequate for septic tanks. Most of the small treatment facilities are operating at close to capacity.

Natural Gas Service

With the exception of Somerset and Cambria Counties, exploration and production of natural gas is minimal. Some natural gas transmission lines run through the region.

Electric

Penelec is the leading electric service provider in the Region. The company serves the northern, eastern, and western extents of the Region. Allegheny Power provides service to the southern extent of the Region.

Telecommunications Infrastructure

The entire southern Alleghenies Region is served by basic telephone lines. Verizon, GTE, and SprinWnited are the three local exchange carriers serving the region's voice and data transfer needs. According to a study by Concurrent Technologies Corporation for Johnstown Renaissance Partnership, the service provided by these carriers to the region is adequate. However, most of the rural areas in the region are not served by wireline inhtructure adequate for high-speed Internet service.

According to the same study by Concurrent Technologies Corporation, the wireline infiastmcture in the Johnstown area is adequate to handle most current bandwidth needs. The same study discusses three issues related to Cambria County. First, the high cost of crossing carrier boundaries with a phone call, making it more expensive to place a long distance call within one county than to place a call from the Johnstown area to Washington, D.C. Second, non-existent redundancy between Verizon, the local exchange carrier for Johnstown and Somerset, and neighboring carriers. Third, AT&T is the only long-distance carrier with a Point of Presence in Johnstown.

In Blair County, the Keynet concept is being put into place by AdeIphia Communications - providing broadband service to the industrial corridor. The county is

11-37 linked to Global Crossing, Williams Communications. The cable or wires necessary for high-speed telecommunications and Internet are in a trunk line extending along Interstate 99 and the Norfolk-Southern Mainline.

In Cambria County and Huntingdon County, the cable or wires necessary for high-speed telecommunications and Internet are in a trunk line extending along the Norfolk-Southern Mainline.

At the present time, many of the telecommunications companies in the United States are struggling financially. There is an oversupply of telecommunications infrastructure and investing speculatively in low-growth areas is a very low priority for these companies over the next couple of years. Demand by households and businesses for bandwidth has not been as high as expected. This economic development strategy takes into consideration the poor financial environment facing the telecommunications industry by assuming that it is unlikely to expect major privately funded expansion of telecommunications infrastructure in the rural areas of the region within the next five years.

Land Use

The Southern Alleghenies Region is mostly non-developed and forested (see Map G). The largest urban areas are Johnstown and Altoona.

There are two major land resources areas in the Southern Alleghenies Region. The Eastern Alleghenies Plateau and Mountains, includes all of Cambria and Somerset counties, as well as the western edge of Bedford and BIair counties. The remainder of Bedford and Blair counties and all of Fulton and Huntingdon counties lies in the Northern Appalachian Ridges and Valleys.

Sixty-six percent of the Southern Alleghenies region is forested. Cambria and Somerset counties are on the Appalachian Plateau and consequently their forests are composed of roughly one-half oakhickory stands and one-half Allegheny hardwoods. Allegheny hardwoods include birch, maple, black cherry, and lesser amounts of red oak, poplar, and ash. The forests in Blair, Bedford, Fulton, and Huntingdon counties in the ridge and valley region are oakhickory stands.

The Commonwealth of Pennsylvania, the National Park Service, and the U.S. Army Corps of Engineers publicly own nearly fifteen percent of the land in the Region. Most of this land is State Gamelands, Statemation Forests and State Parks.

Most of the land in this region had previously been wooded. There is a great need to return these areas to forest by artificial regeneration (tree planting). Better forest stewardship and management must prevail if we are to better utilize this important renewable resource. Both the industry and the public should be educated concerning the need for erosion and sediment control and proper forest management.

11-38

Natural Resources

Coal, oil and natural gas reserves, along with forested products, are the major natural resources found in the region. A small percentage of the land in the region is developed and urbanized. Vast amounts of open space and conservation land exist in the region. State Parks, State Game Lands, and State Forests are located in the Region. Natural resources in the region are shown on Map H.

Urban forests are important to the Southern Alleghenies. Many street trees were planted over 100 years ago. These trees were transplanted from nearby forests to towns having no sidewalks, overhead wires, or underground utilities. An urban forestry initiative must be developed to remove and replace problem trees with new, more suitable varieties.

The Southern Alleghenies provide habitats for rare and endangered plant and animal species, including Kates’ Mountain Clover, Cat’s Paw Ragwart, Tall Larkspur, Canby’s Mountain Lover, the Allegheny Wood Rat and Indiana Rat.

The mineral resources of the Southern Alleghenies Region played an important role in the early development of the area but are less important today. Limestone quarries, lime kilns, iron furnaces and early coal mines can be found throughout the region. Canals, railroads and highways were developed to connect the resources with

I urbanized areas. Mineral resource commodities in the region can be categorized as follows: bituminous coal, non-coal minerals and natural gas. The three primary non-coal resources are limestone, sandstone and shale. Natural gas is a limited resource in the Southern Alleghenies Region. With the exception of Somerset and Cambria Counties, exploration and production of mineral resources is minimal. The development of gas wells and oil wells, coal generated electricity stations and natural gas storage and pumping stations have created numerous, large transmission line corridors tending in an east/west direction across the Region.

The counties in the Region all lay within the Bituminous Coal Region of PennsyIvania. Strip mines are the primary extraction technique for the ’region; deep mining can be found in Cambria and Somerset Counties. Bituminous coal has been extensively mined in the Region for over a century. The bituminous coal fields encompass most of Cambria and Somerset counties, the western edge of Bedford and Blair counties and the Broad Top area of Bedford, Fulton and Huntingdon counties.

Mined extraction operations have impacted the natural environment in the region. Drainage from countless abandoned mines has left some streams devoid of life and unfit for productive use. Dangerous high walls, abandoned building and equipment and open pits are hazards to residents.

11-40

..\ \ Recreation Areas . .. Because of the rural setting found throughout the Southern Alleghenies Region, outdoor recreation is a major component of the tourism industry. Outdoor recreation areas are shown on Map I. Active outdoor recreation activities are among the region’s strongest tourism magnets. These include lakes, a good passive canoe system, spelunking, rock climbing, hiking and biking trails and skiing.

There are a variety of opportunities for water-based recreation in the region. Among the lakes are: Glendale Lake, Raystown Lake, Canoe Creek Lake, Youghoigheny Lake, Somerset Lake, High Point Lake, Gordon Lake, Koon Lake, Meadow Grounds Lake, Lake Rowena, Duman Lake, Shawnee Lake, and Cowans Gap Lake.

Raystown Lake

Raystown Lake is the most important tourism attraction in Huntingdon County and one of the top attractions in the region. The 30-mile-longY8,300-acreY recreational lake that was created by damming the Raystown Branch of the ‘Juniata River. The dam is at the north end of the lake. The lake was opened to the public in 1976, and is currently 24 years old. The lake is a multi-purpose reservoir that was created to provide for flood control, hydroelectric power, recreation, fish and wildlife conservation and mitigation, and downstream low-flow augmentation for water quality improvement.

The Raystown Lake project includes a total of 29,3 14 land and water acres. There are 8,300 surface acres of water for water-based recreation. Recreational activities include swimming, power boating, non-power boating, fishing, water-skiing, ice fishing, hunting, sightseeing, picnicking, and hiking. The lake is a significant attraction to boaters because it is one of the few lakes in Pennsylvania that has unlimited horsepower boating. The lake includes both deep and shallow areas, with approximately 500 acres in “no wake” zones. Numerous coves provide a variety of water conditions for boating and fishing.

Water-related recreation facilities include 11 boat launches (25 lanes), three beaches, and two marinas. Eight boat launches are available for public use. The beaches at Seven Points and Tatman Run are open to the public, while the beach at Lake Raystown Resort is for customers of the resort. Boating and boat-fishing seasons are year-round activities but are limited by freezing temperatures. .

The lake is unusual in that it supports both a warm and cold water fishery. The lake is managed and stocked by the Pennsylvania Fish and Boat Commission. Among the fish in the lake are smallmouth bass, largemouth bass, striped bass, lake trout, channel catfish, and muskellunge. Three guide services offer chartered fishing trips on the lake and provide all the bait, equipment, and boat. Some of the fish caught are quite large - 2 to 3 feet long and weighmg more than five pounds.

11-42

Approximately 3,000 acres of land by the lake are leased by the Pennsylvania i i .. Game Commission for wildlife management; this area is called the Backbone Ridge Wildlife Management Area. Hunting is permitted on the PG€ lands during appropriate seasons. White-tailed deer, turkey, black bear, pheasant, quail, and squirrel are among the game hunted.

There are a number of interesting species of birds that live or feed on or near the lake. Therefore, the lake is an attraction to birdwatchers, although it has not been properly marketed as such. Bald eagles, ospreys, peregrine falcons, least bitterns, black terns, and marsh wens are among the birds observed by the lake.

According to studies done by the Army Corps of Engineers, Raystown Lake has at least one million visits per year. A visit does not account for the length of the visit only the number of visitors at the lake. If a visitor stays for one hour or one week it counts as one visit. The one million visits accounted for an estimated 1.5 million recreation days. A recreation day is defined as one person spending all or a reasonable part of a 24-hour period in one area for the purpose of recreation. The U.S. Army Corps of Engineers has estimated that approximately 12 percent (120,000) of the visits to the lake each year are either campers or other overnight visitors to the region. The majority of visitation to Raystown Lake takes place in the months of June, July, and August. There is also high visitation during October because of the fall foliage scenery.

The actual number of camp-site nights, hotel room nights, or house-boat nights generated by these overnight visitors is not known. Raystown Lake has at least 600 camping sites and the region has over 2,600 camping sites. The market area for most visitors to the lake who use overnight accommodations (hotels, campgrounds, etc.) in Huntingdon County or the region, is the area within a three-hour or four-hour driving distance. This area includes a significant part of the following metropolitan areas: Washington, D.C.; Baltimore, Maryland; Harrisburg, Pennsylvania; and Pittsburgh, Pennsylvania.

Several years ago, the Army Corps of Engineers tried to attract a hotel developer to buiId a resort conference center by the lake. However, when. developers found out that the communities near the lake were ‘‘W (no alcoholic beverage sales allowed) and that the Corps felt that they had to respect the desires of adjoining communities even though the land was government owned, they were no longer interested and the project died.

Raystown Lake is not properly marketed to major tourist markets within driving distance such as the Baltimore-Washington metropolitan corridor.

The Seven Points Marina, located at a point in the northern part of Raystown Lake, around 20 minutes drive fiom Smithfield, is operated as a concession fiom the Army Corps of Engineers. The marina is the largest in Pennsylvania, with dockage for 800 boats. Owned by Anchorage Enterprises, the marina is homeport for a cruise passenger boat. The marina has a rental fleet of fishing boats, ski boats, pontoon, and 15 houseboats. The most expensive houseboats have hot tubs. The Seven Points Marina

11-44 .. i offers dining in the Seven Points Eatery, which overlooks the inner harbor. The Oar House Complex offers souvenirs, bait, fishing tackle, camping and boating supplies, etc.

Since 1977, the operators of the marina have been operating seasonal sightseeing cruises and dinner cruises on Raystown Lake. The entire boat can be chartered for a social event, including birthdays, anniversaries, and wedding receptions.

The quality of fishing on the lake is indicated by the number of fishing tournaments held annually. There were 119 bass fishing tournaments on Raystown Lake in 1999, according to statistics provided by the Army Corps of Engineers. Most participants live in the region within 75 miles of the lake.

Other Outdoor Recreation

A key project in the Region was the acquisition of The Manufacturers Water Company (TMWC) by Somerset and Cambria counties, in -1999. The CSA has a mission to provide citizens of the region with recreation opportunities, water supply protection, economic development opportunities and long-term protection of local natural resources. Citizens and local stakeholder groups in the region have identified the CSA reservoirs as having great recreation potential.

Outdoor recreational needs are apparent in both Somerset and Cambria counties. Although existing state facilities for outdoor recreation are available in both counties, most of these facilities are well-utilized indicating high demand for additional outdoor recreational resources. Use patterns show that the Quemahoning, Wilmore and Hinckston Run Reservoirs are under high demand for recreational use by local and regional residents, including the potential for the development of white water releases; these reservoirs have been closed to the public in past years.

During the summer of 1999, the Southern Alleghenies Conservancy (SAC) organized and facilitated a series of 7 public meetings attended by well over 200 people, which offered the opportunity for the public to drive the recreation development process forward. SAC assimilated and ranked the public's recommendations on recreational use and provided a summary report to the public. Use of the reservoirs for recreation and conservation has become an established community need as demonstrated by continued community support for the acquisition and formation of the CSA. The community was interested in a range of recreation and natural resource conservation benefits that public acquisition and resource protection efforts could provide.

As reported in the Conemaugh River Water Resource Conservation and Management Plan, prepared by SAC and the Stonycreek Conemaugh River Improvement Project (SCRIP), the PA Fish and Boat Commission estimates that the average angler spends between $28.00 and $42.00 per day of fishing. An increase in the number of anglers drawn to these improved resources will contribute to the economy of the region.

11-45 The ability to provide scheduled releases for downstream recreation opportunities at times when excess capacity is available in the reservoirs could aid in the development of a whitewater recreational industry in the Stonycreek Canyon. The Benscreek Canoe Club and American Whitewater estimate that paddlers using the Stonycreek over a weekend would generate as much as $50,000 in revenue for the area. This could provide communities such as Hollsopple and Benson Borough with new economic opportunities. Without the development of Recreation Operation Curves these opportunities will not be realized. As support of this, a study completed by the Pennsylvania State University for the Southwestern Pennsylvania Heritage Preservation Commission in 1993, found that visitors to the nine-county region spent 54 percent of their time and money on outdoor activities, with regional and non-regional boaters and fishermen spending as much as $35.6 million. Enhanced local recreation and conservation opportunities made available through responsible resources management of CSA lands have the high potential for economic benefits from tourism. Increased tourism also has the potential to create tourism jobs in both counties.

Economic Trends and Analvsis

This part of the Analysis Section provides the detailed published data regarding demographics and employment trends for the Southern Alleghenies Region. Demographic data are current to 2000, as are employment data. Both cover the market up to and prior to the 2001 recession. The age distribution of the population by county is presented in tables in Appendix A.

PopuIation

The population trends in the Southern Alleghenies Region are summarized in Table 5. Population centers in the region are shown on Map J. The region’s population is currently 471,600 persons as of 2000; the region’s population declined by 31,000 between 1980 and 2000. However, the rate of decline has slowed, from 5 percent for the 10 years between 1980 and 1990, to 1.3 percent between 1990 and 2000. During the 1980’s, a population loss of 25,000 occurred. The population loss was more modest at 6,000 over the 1990’s.

Cambria County suffered the greatest population loss of any county in the region. The population decline there was 10,430 between 1990 and 2000, greater than the net loss of 6,120 persons for the entire region. Bedford, Fulton, Huntingdon, and Somerset counties gained population which offset some of Cambria County’s significant population declines.

The population of the region, as a proportion of the state population, has been decreasing gradually over the last 20 years, from 4.2 percent in 1980 to 3.8 percent in 2000.

11-46

Blair County also lost population during the past two decades, from 136,600 in 1980 to 129,100 in 2000. Part of the loss of jobs in both Cambria and Blair counties is due to: (1) significant job losses in each county and (2) population declines in each central city.

All other counties in the region gained population in each decade, except Somerset County. Somerset County lost population during the 1980’s but gained some of that loss back during the 1990’s; however the 2000 population in Somerset County is still below it’s population in 1980.

The trends in Table 5 are significant. They show that economic problems exist in the region. These trends show that the region is not generating sufficient new jobs to sustain its current level of population.

Also noted in Table 5 is that the largest counties in terms of population are the ones with population losses. These are the counties with the largest industrial base and retail centers. They are also the County’s with the two central cities. Instead of being the generator of growth, both are realizing declines, and thus, are not growth generators for the region.

Household Potwlation

Household population trends in the region are summarized in Table 6 and measure total population less population in group-quarters. Persons residing in group

11-48 quarters include persons living in institutionalized settings such as nursing homes, correctional institutions, hospitals, and juvenile detention facilities, among other group quarters, such as college dormitories, military quarters, emergency shelters, or the visible homeless living in shelters. Household population is an important statistic because it more accurately reflects expenditure potential, both within the housing market and the market for consumer goods.

Household population in the Southern Alleghenies Region declined by 12,520 persons between 1990 and 2000 compared with a 6,100 total population loss. Persons living in group quarters jumped by 43.4 percent from 14,760 in 1990 to 21,160 in 2000. Some of the increase in persons living in group quarters in Somerset County was the result of the opening of two new prisons: the State Correctional Institution-Laurel Highlands opened in 1996, while the State Correctional Institution-Somerset opened in 1991. Thus, the more accurate picture of the population trends in the region are shown in Table 2 which show a 12,500 household population loss, or three percent of total household population.

The primary point in the comparison of population trend data in Tables 5 & 6 is that the region’s real population decline was double the net loss. The group quarters population growth was significant as persons were moved into the new jails that were built. Thus, in terms of housing and consumer goods spending potential, Blair County’s population and Cambria County’s population are lower shown in Table 5, with j than Table 6 data being a more accurate calculation. Huntingdon and Somerset counties also have a large group-quarters population as of 2000.

11-49 Age Distribution of Population

The trend in age distribution of the population for the entire Southern Atleghenies Region is presented in Table 7. These data show that due to lack of in-migration of families, and the significant out-migration of young adults, the number of children in the region, ages 1 to 19, decreased by 12,640 persons over the last decade, from 130,320 persons in 1990 to 117,680 persons in 2000. That total represents the total level of population loss over the 1990’s. There was population loss in both the under 9 years of age category and in the 10-1 9 age category.

These are significant data. The region is not losing population in the older age groups, but in the younger age groups. Young families who cannot find jobs locally are moving to other communities. (Data in Appendix B presents trends in population by age for each of the six counties in the region).

The number of persons in the 20 to 34 age category showed the biggest decline of any age group, dropping by 14,340 persons between 1990 and 2000. This shows a clear pattern of out-migration of the “20-something” and “30-something” groups, looking for job opportunities and the larger population decline in this age category is consistent with the loss of population of children.

Baby boomers, one of the major age groups focused on by demographers, are persons born between 1946 and 1964, now between the ages of 37 and 55. This age group (35 to 55) is the dominant group in the region with 29.3% of the region’s total population. A stereotype of baby boomers is that they represent the sector of the population that tends to spend money on retail goods, entertainment and services. This sector of the population grew, but as will be shown below, it is not a high wage population.

11-50 .. .. The number of persons in the region that can be categorized as active older adults, or active seniors (55 to 64), declined by 2,860 persons over the 199O’s, which suggests that many people from the region may be retiring to major retirement centers in the US. after they leave their jobs. The number of mature seniors (65 to 84) age category stayed almost constant, which also indicates that there must be senior out-migration fkom the age group just below it (55 to 64).

The only senior age group that increased is the “very old” category of persons 85 years of age and older, which increased by 2,820 persons. This trend could suggest a future need for more nursing homes and assisted living facilities in the region, because persons in the 65 to 84 age group are more likely to be those to remain locally based on strong family and community ties.

Households and Household Size

In 2000, there were approximately 185,000 households (occupied housing units) in the Southern Alleghenies Region. Households refer to families and single person households or unrelated individuals residing in the same housing unit. Households are often considered the most important demographic unit related to economic analysis, because it is households that represent the demand factors for housing and retail purchase decisions.

\ I Over the past two decades, the region realized net household growth in each decade. As shown in Table 8, even during the 1980’s when the region’s population declined by 25,000 a net increase of more than 4,000 households were realized. Surprisingly, household growth during the 1990’s was nearly equal to that of the 1980’s. This situation is caused by the decline in the average household size (presented in Table 9). Nationally, the average household size declined at a faster pace during the 1980’s compared with the 1990’s. Thus, even with a net household population decrease, there was household growth.

Within the region, only Cambria County realized a decline in total households and household losses were realized each decade since 1980. Cambria County lost 1,400 to 1,500 households in each of the past two decades. In contrast, household gains were realized in Blair County during the 1980’s and 1990’s.

The average household size for each county in the region is presented in Table 9. For the region, the average household size decreased ffom 2.56 persons in 1990 to 2.43 persons in 2000. This mirrors a national trend, although the 2.43 average household size in 2000 is low for a rural setting and reflects the large percentage of seniors and the large decrease of persons under 19 years of age.

11-5 1 The small average household size reflects the small number of persons under 19 years of age--25 percent of total population and the large percentage of seniors--17.8 percent (the national average for persons over 65 years of age is just over 12 percent).

In 2000, all counties under study had an average household size of 2.35 to 2.50. The lowest at 2.38 is Cambria County, the County with the largest loss of young families. The average household size in Blair County is also on the low side at 2.43 compared with other area counties.

11-52 Household Income Levels

Household income data from the 2000 Census are based on the income that households in the Southern Alleghenies Region earned in 1999. The regional distribution of households by income category is presented in Table 10. The Southern Alleghenies Region is not affluent, and has a large number of moderate- or lower-income households. Approximately 39 percent of all households earned less than $25,000 per year in 1999, and approximately 74 percent earned less than $50,000 per year. Upper-income households, defined as those with household incomes over $100,000 in 1999, represented only 4.1 percent of total households. However, the relatively low cost of living in the region allows more spending potential after basic needs are met than might be suspected, and the lack of affluence does not directly correlate with a low quality of life.

The estimated 2001 median family income (which is higher than household income) in each county or MSA in the region is presented in Table 11, showing a range between $33,000 and $41,500. These figures are estimated by the US. Department of Housing and Urban Development for the purpose of determining family I income qualification for affordable housing programs. The Johnstown-Somerset

11-53 Metropolitan Statistical Area had the lowest median family income in the region, at $33,000, while Bedford's was in the middle of the range, at $36,700. The Altoona MSA and Huntingdon County had almost identical median family incomes at $39,500 and $39,400, respectively. Fulton County had the highest median family income in the region, at $41,500, nearly 26 percent higher than either Somerset or Cambria. Fulton County is located closest to the Washington, D.C. metropolitan area and has a growing number of residents commuting to Hagerstown, Maryland and other job centers in the northern edges of the Washington, D.C. metropolitan area, where higher-paying jobs may be pushing up the county median.

Summary

The region is experiencing an overall population loss, with all of this loss being realized in the two counties with the largest populations--Blair and Cambria. The population losses are more pronounced because of the large decline in household population and the large decline in families with children and in the age category of under 19. The region's population is getting smaller and older.

It is also a low-income region. This condition could worsen over time as the region gets older and as job losses continue. Data presented above show major problems within the region concerning demographic trends.

Demomaahic Proiections

The projections presented in Table 12 are based on current trends. They show what is likely to occur during the 2000's without any changes to the region's economic base. Current trends show continued declines in demographic data.

11-54 Population Projections

With current trends in job losses it is likely that the region’s total population will decline to 466,000 by 2010, which reflects a loss of 5,700 persons over the 2000 decade. The household population would be lower at approximately 444,000. Current trends should show continued population declines in Blair and Cambria counties. These are important counties for the region. These data are presented in Table 12. They show the significant issues that are facing the Southern Alleghenies Region.

Households

The region realized a significant decrease in the average household size of each County. That level of increase is not likely to continue, as the average household size is currently quite low for a rural region.

Based on the estimate of a decline in the average household size from 2.43 in 2000 to 2.39 in 2005 and 2010, the region is expected to realize a very small increase in households by 2005 and then a decrease to 186,300.

The issue here is that the trend in the average household size and whether this demographic factor will continue to decline at past rates. If it does, then the growth of households could be larger than the figures shown in Table 12.

Housine Units:Tvpe and Tenure

The trend in housing unit development in the Southern Alleghenies Region is presented in Table 13. Over the 1990’s, the region appears to have a housing market that is in balance, with the number of new housing units built during the 1990 to 2000 decade almost completely mirroring the increase in occupied housing units (i.e. growth in households).

During the 1990’s, 4,760 housing units were built in the region. Household growth was 4,850. The region does have a considerable number of vacant apartment units, over 11 percent of all housing units. This is double the typical percentage of vacant units.

11-55 ....._ i

11-56 Data are not yet available on the number of seasonable dtsadded, but data in Table 13 show seasonable housing units (Hidden Valley, Seven Springs and Blue Knob) being a significant factor in housing unit development in the region.

These units are often vacant in April. Thus, in 2000, nearly half of all vacant housing units in the region were seasonal units. The increase in the number of vacant seasonal housing units between 1990 and 2000 indicates that approximately 2,000 seasonaUvacation homes were built in the region, or 4& percent of net housing units built.

It is likely that seasonal housing units were an important component of the total of new homes built during the 1990’s as this is one of the stronger components of the economy. The seasonal homes (vacant units as of April, 2000) represent over 5 percent of the region’s total housing units in 2000.

The region has 76 percent owner occupancy, much higher than the national average of 66 percent. The proportion of households owning their housing unit increased slightly during the decade, from 75 to 76 percent. The national trend during the decade

11-57 .. .. ! was also for a higher percentage of housing ownership, approximately two to three percent increase.

A projection by S. Patz & Associates of the number of new housing Units that will be constructed in the region during the period from 2000 to 2010 based on past trends is presented in Table 14. This is a difficult forecast to make with a declining population base. What we used was a ratio of household growth to housing unit additions over the 1990’s based on Census data. That ratio varied greatly in each county, as shown. The figures for Blair County does not show a normal trend. Household growth there was much greater than new housing unit construction. This could be accounted for by a high vacancy rate in Blair County in 1990.

Cambria County realized a household and housing unit loss over the 1990’s, almost at a one-to-one ratio. The high ratio of housing unit additions to household growth in Huntingdon County reflects seasonal home development in the Raystown Lake area and at Blue Knob. That type of ratio would have been expected in Somerset County, but was not realized during the 1990’s.

The housing unit projections shown in Table 14 for the region shows a addition of 2,360 new homes, one half the increase of the 1990’s. During the 2000 decade, Blair County could also realize a loss in housing units if current trends continue.

11-58 ...... - j Employment Trends

This subsection of the report represents a detailed analysis of employment trends in the Southern Alleghenies Region by employment sector, as detepined by the Pennsylvania Department of Labor and Industry. Labor force (the number of County residents who are available for work and are in the labor force) and unemployment data are current to 2001. Employment data or at-place jobs, the calculation of the number of persons who are employed in each county, are current to year-end 2000, and are reported as annual averages for the year. Employment data are not yet available for 2001 and are thus current to the time prior to the recession of 200 1.

Labor Force Aoalvsis

The trends in number of persons in the civilian labor force in the Southem Alleghenies Region is presented in Table 15. The total number of persons in the labor force in 2001 was 218,100, or 11,720 persons higher than in 1990. This increase is somewhat surprising given the population losses of the 1990’s and the increase in the senior population. It probably reflects a higher proportion of women entering the work force. The “welfare-to-work” trend may also have increased the labor force somewhat.

Data in Table 15 show that while the labor force in the region grew over the 1990’~~it decreased over the past five years. This trend also is surprising, as the national and local economy was in recession during the early 1990’s and was growing during the last part of the 1990’s. Cambria County’s labor force is not consistent with demographic trends.

11-59 . .. :! The average annual number of unemployed persons in the civilian labor force, for the period 1996 through 2001, is presented in Table 16. The time period studied includes the growth years between 1996 and 2000, and then 2001, the year of a mild national recession. These data show that unemployment in the region had fallen by 3,000 persons 'over the 1996 to 2000 period, but that the recession of 200 1 hit the region hard, especially in Blair County, and the number of persons unemployed in 200 1 increased by 1,700 (but is still 1,300 below the 1996 figures). Unemployment is likely to increase again in 2002, based on post-2001 job losses.

Seven hundred more persons were unemployed in Blair County in 200 1 than in 2000, and discussions with county economic development officials indicate that the 2002 number will be even higher than in 2001. Surprisingly, Cambria County is the only one of the six counties that did not realize an increase in unemployed persons in its civilian labor force during the 2000 to 2001 period.

The trend in average annual unemployment rate in the region, compared to Pennsylvania as a whole, and to the nation, is presented in Table 17. For the period 1996 through 2001, the Southern Alleghenies Region has had a higher unemployment rate than both the State of Pennsylvania and the nation. The best year for the region, in terms of low unemployment rate, was in 1999, when the national economy (and stock markets) peaked. In both 2000 and 200 1, the unemployment rate increased in 4 of the 6 counties comprising the region.

Cambria and Somerset counties are the two counties in the region that did not experience an increase in the unemployment rate in 2001, primarily because most manufacturing job losses took place in 2000, and no deeper cuts occurred in 2001. Fulton County and Huntingdon County were particularly hard hit with job losses because

11-60 of their reliance on several major employers that had significant layoffs in 2000 and 2001. The region’s unemployment was near or over six percent for the past five years. Pennsylvania’s unemployment rate was well below five percent for that entire period.

. .., \ /1 Occupation. Current data on the occupation of residents of the region, as measured by the 2000 U.S. Census, was recently released in June 2002 in summary form, and is presented in Table 18. These data cannot be compared to the more comprehensive data from the 1990 Census, which are presented in Table 19.

The data in Table 18 show that no occupational category dominated any of the six counties in the region in 2000. Cambria County had the highest proportion of persons working at management, professional, or related occupations, at 27.9 percent of the total in that county. Production, transportation, and material moving occupations, including a large proportion of occupations in the manufacturing sector, ranged from a low of 17.2 percent of total occupations in Cambria County to a high of 26.8 percent of total

’ occupations in both Bedford County and Fulton County, which rely on several major manufacturers such as JLG.

In 1990, the proportion of the labor force involved in manufacturing jobs, warehouse and distributionjobs, constructionjobs, trucking, railroads, or jobs related to those sectors, ranged from a low of 31.8% in Cambria County to a high of 45.3% in Fulton County, and was approximately 35 percent for the overall region. These jobs are found in the following occupational groupings: precision production, craft, and repair occupations; machine operators, assemblers, and inspectors; transportation and material moving occupations; handlers, equipment cleaners, helpers; or laborers.

11-6 1 The proportion of the labor force in professional specialty occupations in 1990 ranged from a low of 8.2% in both Bedford County and Fulton County, to a high of 13.0% in Cambria County, where the City of Johnstown is located. This category includes: lawyers and judges; engineers, architects, and surveyors; mathematicians and computer scientists; natural scientists; health diagnosing occupations; health assessment and treating occupations; post-secondary-school teachers; teachers except post- secondary; educational and vocational counselors; librarians, archivists, and curators; social scientists and urban planners; social, recreational, and religious workers; and writers, artists, entertainers, and athletes.

The Southern Alleghenies Region had a relatively low proportion of residents in executive, administrative, and managerial occupations in 1990. This includes managers and administrators in many different industries as well as accountants, auditors, underwriters, purchasing agents, and construction inspectors, among others. The proportion of the labor force in this category in 1990 ranged from a low of 6.4% in Bedford County to a high of 8.4% in Blair County.

In 1990, the region had a relatively high proportion of residents in service occupations, including: wait staff; cooks; nursing aides; maids and housemen; hair- dressers and cosmetologists; barbers; dental assistants; and janitors and cleaners; among others. The proportion of the labor force in this category in 1990 ranged from a low of 10.6% in Huntingdon County to a high of 14.2%in Cambria County.

11-62 ...

Relatively few residents of the region in 1990 worked in farming, forestry, and fishing occupations. The proportion of the labor force in this category in 1990 ranged from a low of 1.3% in Cambria County to a high of 7.0% in Fulton County.

A relatively high proportion of the labor force worked in administrative support occupations, including clerical occupations, in 1990. This occupational grouping includes: secretaries; typists; information clerks; financial records processing occupations; communication equipment operators; and mail and message distributing occupations, among others. The proportion of the labor force in this category in 1990 ranged from a low of 1 1.9% in Fulton County to a high of 14.9% in Cambria County.

A relatively modest proportion of the labor force worked in sales jobs in 1990. This occupational grouping includes cashiers at retailers, supermarkets, and restaurants, among other occupations. The proportion of the labor force in this category in 1990 ranged from a low of 7.3% in both Fulton County and Huntingdon County, where there is not much retail, to a high of 12.8% in Blair County, a retail center for part of the region.

11-63 ’ i The distribution of the labor force in the entire Southern Alleghenies Region in 1990, with occupational grouping ranked based on number of persons in those categories, is presented in Table 20. Two of the three top occupational groupings in the Southern Alleghenies Region include many relatively low paying occupations, either as administrative support personnel in office jobs or in some of the service occupations such as waiter, nursing aides, and dental assistants. Precision manufacturing and skilled construction occupations, with more high paying jobs, was the second highest occupational grouping in the region. In Table 20, the labor force distribution ratios for the Southern Alleghenies Region have been compared with the distribution in 1990 in ‘Montgomery County, Pennsylvania (suburb of Philadelphia) and Fairfax County, Virginia, two counties in the Mid-Atlantic area that have a relatively high proportion of “knowledge workers” as well as “high tech” workers. Both Cambria County and Blair County have made it their goal to increase the proportion of their respective labor force that is made up of these types of workers.

The comparison shows that both Montgomery County, Pennsylvania and Fairfax County, Virginia had a much larger proportion of the labor force in managerial positions as well as teachers, scientists, and other persons in professional specialty occupations compared to the Southern Alleghenies Region. Alternatively, in the four occupational categories including most manufacturing and constructionjobs, the combined proportion of the labor force in Fairfax County and Montgomery County was 11 percent and 20 percent, compared to 35 percent for the Southern Alleghenies Region.

Since 1990, Cambria County has been increasing the proportion of its labor force in professional and specialty occupations, especially engineers who are government contractors and those in executive, administrative, and managerial occupations also related to federai government contracting. This is why the unemployment rate in Cambria County was less impacted by the national recession, because its labor force had less reliance on the manufacturing sector, which experienced the greatest number of layoffs. Occupational trends in the other counties are less clear.

The regional labor force distribution between private sector and government workers, and between self-employed workers and those receiving wages and salaries from employers is summarized in Table 21. In 2000, the proportion of the labor force in the Southern Alleghenies Region that worked for the private sector and received wages or

salaries, ranged from a low of 75 percent in Fulton County to a high of 82 percent in , Blair County. Within the region in 2000, Huntingdon County had the highest proportion (16.1%) of labor force working for the government, because of the large number of residents working in the state prisons. In 2000, the region also had a significant number of self-employed workers, with Bedford, Fulton, Huntingdon, and Somerset each having between 8.5 and 9.7 percent of their respective labor forces being self-employed.

11-64 Note: While the data in the above analysis is 1990 data, it is likely that percentages for each category did not change much during the 1990’s. Some changes could have occurred in specific industries, but for the region, there is still a heavy reliance on various jobs in the manufacturing and services sectors.

11-65 At-Place Jobs

The analysis of total at-place employment (jobs) in the Southern Alleghenies Region includes only payroll jobs where employees are covered by unemployment insurance. Importantly, these are jobs at business establishments or governmental organizations located in the region, even if some of the jobs are held by persons living outside the region who are not part of the regional Iabor force.

In every year between 1997 and 2000, the region's total civilian labor force was larger than the total number of payroll jobs, which suggests that a significant proportion of residents of the region are commuting to jobs outside the region or are self-employed in non-payroll jobs. Jobs data include only payroll jobs where employees are covered by unemployment insurance. Self-employed persons would not be included unless they are on the payroll of their own corporation. The trend shown in Table 22 indicates that the number of jobs in the region grew steadily from 1997 to 1999, with 5,790 jobs added. Then, in 2000, the regional economy started slowing in advance of the recession in 2001, and a number of other negative factors such as permanent manufacturing plant closings also took place, together resulting in a slight net decline of 370 jobs in the region in 2000. The 2001 numbers were not available at the time of our study, but indications are that the total number of jobs continued to decline for the second year in a row.

11-66 i

Jobs are clustered in Blair County and Cambria County, where the two largest cities in the region are located. The total jobs in Blair and Cambria counties represented 66 percent of the region in 1997 and 65 percent in 2000. The regional trend in number of jobs by sector is shown in Table 23. The only job sector that showed a big decline between 1999 and 2000 was manufacturing, dropping by 1,444 jobs. As of 2000, one fourth of the jobs in the regional economy were in services. Retail trade was the next most important sector, with 20 percent of total jobs in 2000. Manufacturing was a close third, with 18 percent of total jobs. After manufacturing, the next highest ranked category was local government, with only 10 percent of total jobs. Local government jobs increased steadily, albeit at a modest rate, over the period 1997 through 2001. After local government, four categories were closely ranked, each having about 4 percent of total jobs: construction; wholesale trade; state government; and fmance, insurance, and real estate.

11-67 Analysis of Job Categories

In the paragraphs that follow, specific analysis is presented for the key components of the region’s employment and how these job categories have grown in light of the region’s overall economic decline.

Tourism Emdovment

Employment in tourism-related businesses is found in several industry employment sub-sectors including Hotels & Other Lodging Places and Amusement & Recreation Services in the service sector, and Eating and Drinking Places in the retail trade sector, among others. In this section, the term “lodging’”has been used in place of “hotels & other lodging places” when discussing employment or wages. The term “hotel rooms” refers only to rooms in hotels, while the lodging industry can include campgrounds, condominium rentals, etc.

11-68 ..3 ' .i Lodging Emulovrnent Trends. Approximately 2,800 persons worked in the lodging industry in the region in 2000, the most recent year for which data were available. Lodging employment represents approximately 1.6 percent of total employment in the region. The trend in lodging employment, presented in Table 24, shows that such employment remained almost flat between 1997 and 1999 and then dropped by about 2 percent in 2000, as economic conditions in the national manufacturing sector began softening nationally and leisure and business travel slowed. In 2000, there were some modest lay-offs of lodging employees in Blair County, Cambria County, and Huntingdon County.

The very large number of employees in the Lodging category in Somerset County is due to the large Seven Springs Resort and Hidden Valley Resort. Huntingdon County has a very small number of lodging employees in spite of the large Raystown Lake. There are very few hotels near Raystown Lake and all are small.

As shown in Table 25, nearly half of all lodging employment in the region in 2000 was in Somerset County. This is because two substantial four-season resorts, Hidden Valley and Seven Springs, are located there. Bedford has the second-largest employment in this sub-sector, due to the large number of hotels in Breezewood. Huntingdon, which has a goal of increasing its lodging inventory, is ranked fifth in the

11-69 region in terms of lodging employment, and should be able to with the large Raystown Lake located there.

Lodging Industrv Wages. In 2000, average annual lodging wages were $13,474 in the Southern Alleghenies region, as shown in Table 26. Clearly, most jobs in this Services sub-sector are low-wage jobs. Lodging jobs are excellent for second- income earners and students. Hotel managers represent the few higher-paying jobs in this sub-sector.

11-70 Eating and Drinkinp Place EmDlovment

The trend in eating and drinking place employment is shown in Table 27. Persons working in eating and drinking places in the region include persons working in the Sheetz mini-marts found at most highway interchanges, table service restaurants, sports bars in Altoona and Johnstown, and a gamut of other establishments. Eating and drinking place employment represents approximately 1.6 percent of total employment in the region. Wages are typically low, but tip income helps boost the income of workers in this sector. The tourism industry supports these establishments, but local residents and persons working in the region (but living elsewhere) also patronize these establishments.

The employment trend in the eating and drinking place industry in the region indicates modest growth of about 200 jobs per year in 1998 and 1999 and then a decline of around 100 jobs in 2000. The biggest decline was in Bedford County, which suggests that a number of restaurant establishments closed in 2000. It should be noted that this is one industry where there are a significant number of self-employed persons or non- payroll employees that are not counted in these figures. Eating and drinking place employment is a sub-category of retail trade employment.

11-71 Retail Trade Emelovment Trends

Approximately 36,200 persons worked in the retail trade sector in the region in 2000, the most recent year for which data were available. This sector includes the following sub-sectors: building materials and garden supplies; general merchandise stores; food stores (e.g., supermarkets); automotive dealers & service stations; apparel and accessory stores; furniture and home-furnishings stores; eating and drinking places; and miscellaneous retail. The eating and drinking glace industry accounts for approximately one-third of the total employment in the rehi1 trade sector. Total jobs in the retail trade sector represents approximately 21 percent of total employment in the region.

The trend in retail trade employment, presented in Table 28, shows that such employment remained almost flat between 1997 and 1998, then increased by 3 percent in 1999, before falling slightly in 2000. Based on the decline in household population in the region and store closings due to national corporate bankruptcies, significant employment growth in this sector is unlikely unless there is an increase in the volume of retail expenditures by tourists or if there is a shift towards more affluent residents with greater spending potential. With Ames and K-Mart closing stores across the nation, additional job losses in the retail trade sector can probably be expected in the region in the short-term.

11-72 Between 1997 and 2000, Bedford County experienced the greatest increase in number of new retail trade jobs, with 515 jobs added in this sector. Blair County followed Bedford, with an increase of 468 jobs. Retail trade employment in Cambria County declined, while Fulton, Huntingdon, and Somerset counties had very modest gains of 36 jobs, 63 jobs, and 36 jobs, respectively.

Retail Trade Wages

The retail trade sector tends to be a low wage sector. However, in a mostly rural region, retail stores are an important amenity and valuable source of employment, especially for second-income earners and college students. As shown in Table 29, wages in the region for retail jobs, including eating and drinking places, increased steadily between 1997 and 1999. The “hot” economy during this period caused competition for low wage earners. In 2000, with the regional economy softening, the increase in average annual wage was slower than in the prior year, and in Blair County and Huntingdon County, the average wage slipped slightly.

. ‘i,

11-73 Wholesale Trade Employment Trends

The trends in wholesale trade employment in the region, shown in Table 30, indicate that the number of jobs stayed relatively stable over the four-year period between 1997 and 2000, fluctuating up and down by several hundred jobs. This type of employer typically has a warehouse and also has trucks for deliveries to customers either inside or outside the region. The presence of the Pennsylvania Turnpike and 1-99 in the region make it suitable for large warehouse/distributionoperations.

Sheetz, a highway gas statiodsuper-mini-martchain, headquartered in Altoona, is a good example. In 2001, Sheetz dedicated a new 300,000-square-foot distribution center, located near 1-99 between the Claysburg/King exit and the SprahVMcKee exit. The site is 60 acres and will accommodate expansion. Altoona competed with communities in Virginia, West Virginia, and Maryland for the distribution center. While tax incentives were offered by various communities competing for the distribution center, the Altoona area workforce reportedly tipped the scale in Altoona's favor.

This employment sector could have some solid growth potential because of the location of the region and its highways. Wal-Mart opened a distribution center off of I- 99 in Bedford County in the late-1990's. Another example of a company seeking a central location in Pennsylvania near a major highway. CVS has a distribution center in Somerset County.

11-74 The trend in average annual wages in the wholesale trade sector are shown in Table 3 1. The average wages for the region in this sector are slightly lower than in the Manufacturing sector, but higher than those in the Services sector and Retail Trade sector. The exception is Fulton County, where average wages in this sector were quite , low.

11-75 Manufacturing Employment Trends

Steel manufacturing has always been one of the economic pillars of the Southern Alleghenies Region. The other two “economic pillars” for many years were coal mining (Mining sector) and railroads (Transportation sector). When Bethlehem Steel was at its peak, it employed 22,000 workers in Cambria County, and the entire steel industry employed 35,000.

While the steel industry is only a fraction of what it once was, there are a number of manufacturers in other industries. The Manufacturing sector typically has the high- . wage jobs that are so desired by households that have had multiple generations of families working in the manufacturing industry. Unfortunately, the combined effects of globalization, NAFTA, environmental regulations, and other factors have caused this to be a sector that may not have a bright future. However, it remains a sector that most of the counties in the region are still concentrating on.

The trend in manufacturing jobs in the Southern Alleghenies Region, shown in Table 32, indicates that this is the job sector that really needs a boost through attracting some new employers to the region, supporting start-up manufacturers, and helping existing manufacturers become more competitive by expanding or upgrading their facilities. Every county in the region experienced a net loss of jobs in this sector between 1999 and 2000. The total region had a net loss of 1,444 manufacturing jobs since 1997, I with Cambria County being hit the hardest, losing 779 jobs.

11-76 I! The recent spate of manufacturing layoffs in Blair County are indicative of problems facing the regional economy. Summarized below are the results of interviews related to several manufacturers. The Butterick Company, a private company headquartered in New York City, printed men’s, women’s, and children’s clothing patterns for at-home sewers, under the Butterick and Vogue brand names. The company, which was founded in 1863 by Ebenezer Butterick, merged with the McCall Pattern Company in 2001. As a result of the merger, the new company, called McCall Butterick and Vogue Patterns, decided to close the Altoona plant of Butterick at 2900 Beale Avenue and move the production to a plant in Kansas. Approximately 250 jobs were permanently lost in BIair County. The reason given for the closing was that a national decline in demand for patterns by at- home sewers required a consolidation as a survival tactic. The objective was to combine the revenue of the two companies but to sharply cut costs both at the production level and corporate headquarters in New York. Labor costs were relatively high in Altoona compared to Kansas, as the employees in Altoona were all members of either the Printers Union or Textile Union. The majority of jobs were lost in July, 2001 and the remaining 25 jobs were phased out between November, and December, 2001 after an auction of equipment and merchandise.

C-Cor.net, formerly known as C-COR Electronics, -is a high-tech company headquartered in State College, Pennsylvania, in Centre County, just outside the Southern Alleghenies Region. The company designs and manufactures network distribution equipment for the hybrid fiber coaxial networks of cable television operators. The company experienced sharp declines in sales in fnst six months of 2001, with costs remaining high, as a result of under-absorbed manufacturing overhead resulting from lower production volumes, and increased contributions to operating reserves for inventory obsolescence and warranty costs. To cut costs, the company decided to close its manufacturing facilities in State College (Centre County) and in the Artie Dillen Industrial Park in Tipton (Blair County), and relocate the production to its Tijuana, Mexico facility. According to the Altoona Blair Development Corporation, approximately 490 jobs were lost in Blair County between June and October 2001 as a result of the closing. Tipton is located north of Altoona, between Bellwood and Tyrone along I-99N.S. 220.

The Altoona plant of Huck International’s Industrial Fmtener Division, located at 4601 Cortland Avenue, shut-down during the last half of 2001. Approximately 170 employees, 30 office workers and 140 production workers, lost their jobs. The office workers include people in sales and marketing, human resources, information technology, and engineering. Approximately 5 employees moved to another Huck International facility in Medina, Ohio. The equipment in the Altoona plant is also being moved to the Medina plant. Employees were told that combining the production of the Medina, Ohio plant and the Altoona plant would save the corporation money, and that the Ohio facility was selected over the Altoona facility because the Ohio facility is located closer to their primary customers in the automotive industry. This is the end result of a number of corporate acquisitions. Cordant Technologies Inc.’s Huck International subsidiary purchased Jacobson Manufacturing Company in 1998, including the Altoona

II-77 manufacturing facility. Then, in 2000, Cordant Technologies became part of the newly formed Alcoa Industrial Components (AIC) Group. The plant manufactured custom- designed metal parts and fasteners used in automotive, construction, and heavy equipment applications.

The Weshraco plant at 1600 Avenue in Tyrone, which had been at that location for over 100 years, closed in late October, 2001, resulting in the loss of approximately 265 jobs; approximately 5 people remain at the plant. Westvaco manufactured coated and uncoated paper at the paper mill. The closure was related to the merger of The Mead Corporation and Westvaco Corporation, announced in August, 2001 and finalized on January 30, 2002; the merged company is called MeadWestvaco. According to an employee of the Tyrone plant, the reason given for shutting the facility down included the following: weak national demand for coated paper; and an old and obsolete facility. Thus, the plant was a target for cost-cutting after the merger was announced. Westvaco’s other manufacturing facility in Blair County, where envelopes are manufactured, has survived the merger and is now part of MeadWestvaco. That facility is located in Williamsburg, east of Altoona.

F.L. Smithe Machine Company, a privately owned company headquartered in Blair County, manufactures high-speed machines that make envelopes. The company is nearly 100 years old and moved to Altoona in 1965. The machines are sold world-wide, and the company maintains a sales and distribution facility in England, to ensure quick machine parts delivery to European customers. A consolidation of its customers, with 1 larger customers purchasing smaller customers, caused a reduction in orders that typically occurs approximately once every 10 years. Recognizing the trend, the company started downsizing in mid- 1999, and laid-off approximately 325 employees between then and the end of 2001, reducing its workforce fiom 500 to 175. Approximately one-third of the reduction in employees was from normal attrition. A source not at the company indicated that competition fkom German manufacturers has also been a factor in the downsizing.

As can be seen from the above layoff summaries, some of the problems facing the manufacturing sector are a result of mergers, global competition, companies shifting jobs to foreign locations due to low labor costs, old and obsolete facilities, etc. Most of the job losses were in “old economy” companies, but even a high-tech company decided to move jobs “south of the border.” No economic development strategy could have saved most of these jobs. The issues are whether the manufacturing sector in the regional economy can generate new jobs to replace these jobs and in new growth areas. Many of the more than 10,000 steel industry jobs lost in Cambria County during the 1976 to 1986 period, mostly at U.S. Steel and Bethlehem Steel, have never been replaced. The steel industry is still struggling. In 2000, the RTI steel mill closed near Johnstown, resulting in the loss of 180 jobs. Nevertheless, there has been a mild rebowd of the steel industry in the county. The City of Johnstown provided the following information about companies that are reusing some of the former U.S. Steel, Bethlehem Steel, and other steel plants:

,. i, ......

11-78 ..

0 Gautier Steel now operates the former J. Pitt Steel Plant, and is one of six specialty steel manufacturers in the world. Gautier manufactures specialty steel shapes. 0 Johnstown Corporation now occupies the former U.S. Steel plant. Johnstown Corporation is a foundry and speciahy machine shop producing castings, parts, and supplies for the machinery, automotive, and shipbuilding industries. The company employs between 450 and 500 people. 0 Johnstown America Corporation owns and operates what was the Bethlehem Steel Company “car shop.” The company manufactures rail cars used to transport bulk goods like coal, trailers, stone, and grain. 0 Johnstown Wire Technologies is a growing steel manufacturer supplying the automobile industry with specialty steel products. Known as the ‘hire mill”, the company has formed an alliance with Nippon Steel to deliver steel to Japanese auto plants in the U.S.,insuring the fbture growth of the firm.

JLG, a public company headquartered in McConnellsburg in Fulton County, had major layoffs in 2001, impacting residents of Fulton, Bedford, and Huntingdon Counties who worked at either the main plant in McConnellsburg or the plant in Bedford County, which closed. The company manufactures aerial platform lifts, other lifts, and dominates and defines the job base in Fulton County. Prior to the layoffs, the company had 1,890 jobs at the Fulton County plant, which is also the corporate headquarters. The company was doing very well in 2000, but built up too much inventory prior to the economic downturn. The lay-offs at JLG are more cyclical in nature, and some of the laid off workers will be hired back.

There has also been some positive activity in the manufacturing sector. Several examples are summatized below:

0 North American Hoganas, a Swedish company involved with high-tech manufacturing of metal powders, bought an existing building in Somerset County in 2000 and then constructed some customized additions. The company also has a research and development activity at the plant. The existing building was formerly occupied by ABEX Wheel, which was a specialty steel company manufacturing wheels for trains. The majority of the building was vacant, and it had one ham. Hoganas compresses the powder to make automotive parts. The plant went into operation in October 2001, and at full production will have 200 employees. It is a union shop. The Governor’s Action Team, Somerset County Economic Development, and the Johnstown Industrial Development Corporation were all very involved in making the deal happen. The county hopes that there will be economic spin-off fkom Hoganas, such as companies that heat-treat parts made of metal powder.

11-79 i 0 In 2001, Appleton Papers completed an expansion in Blair County. This hlly integrated pulp paper mill produces carbonless and security papers. In Spring of 2000, Appleton began construction of a 38,000-square-foot building at the facility to develop an additional paper converting and packing line. The total project cost was over $1 1 million and was partially financed by PIDA and MELF. The company is among the ten largest employers in Blair County, with over 500 employees.

The trend in average annual wages in the manufacturing sector is shown in Table 33. Manufacturing jobs pay much more than jobs in the Tourism industry and Retail Trade sector, and thus are highly desired by the primary “bread-winner” in many families in the region. The average annual wage in the region has about kept pace with inflation. Only Cambria County experienced a decline in the average annual manufacturing wages in 2000.

Transportation, Communications, and Public Utilities Emdovment Trend

This job sector includes local and inter-urban passenger transit; trucking and warehousing; water transportation (e.g., barges or cruise vessels); transportation services; communications; and electric, gas and sanitary services. Within the region, this includes railroad jobs, trucking jobs, and jobs at utility companies including electric, gas, and water providers. Phone companies and long distance providers are also in this sector.

11-80 As shown in Table 34, there was healthy growth in this sector in 1999, with 294 jobs added, and in 2000, with 498 jobs added. Blair County, Cambria County, and Somerset County all experienced healthy increases. Blair Coimty and Cambria County have 74 percent of the jobs in the region in this sector.

Despite past positive trends, recent news from the railroad industry is likely to cause this sector to experience some decline in 2002. The Norfolk-Southern Hollidaysburg Cur Shop in Altoona may be closed. Norfolk Southern Corporation, a Virginia-based holding company with headquarters in Norfolk, owns a major freight railroad, Norfolk Southern Railway Company, which operates approximately 2 1,800 miles of rail in 22 states, the District of Columbia, and Ontario. The company obtained the Hollidaysburg Car Shop in Blair County when it purchased.Conrai1 several years ago. Rail freight cars are repaired at the shop, Norfolk-Southern planned to close its Hollidaysburg Car Shop in November, 2001, as part of the company's ongoing restructuring program. The closure would have resulted in the loss of more than 300 jobs. However, a court petition has temporarily prevented this closure from taking place, because the petitioners say that terms of the purchase of Conrail prevent such an action.

According to representatives of the company, changing economic conditions and excess capacity throughout the freight car repair industry have reduced its workload to the extent that it cannot support continued operations at the shop. NSC plans to consolidate work at fewer locations to make it a more efficient company. The locations where jobs are being kept are in Georgia, Illinois, North Carolina, and Ohio. The 300- plus employees who would lose their job in Hollidaysburg would have an opportunity to follow their work to some of these other locations and employees who transfer with their work will be paid relocation expenses. In some instances, applicable labor agreements and protective conditions will require Mer handling with NSC unions before

11-8 1 implementing the work transfers. NorfoIk Southern indicated that it would continue to work with Blair County development officials in finding alternative uses for the Hollidaysburg facility and have been meeting with the Governor’s Action Team and the Altoona Blair Development Corporation.

As seen in Table 35, jobs in the T.C.P.U. sector pay as well as manufacturing jobs and thus are considered highly desirable by members of the labor force and county offcials. Many of the railroad jobs are union jobs. This is why the planned closure of a facility such as the Hollidaysburg Car Shop represents significant economic pain for the region.

Services Sector Emplovment Trend

This sector is the largest in the region in terms of total jobs. Included in the services sector are jobs in hospitals and other health care facilities, ballparks, auto repair, private colleges and universities, hotels and other lodging places, Iaw firms, engineering firms, cinemas, amusement parks, and miscellaneous repair services, among others.

Surprisingly, the number of jobs in the region in this sector remained flat over the three-year period between 1998 and 2000, as shown in Table 36. Blair County experienced a decline of 758 jobs in this sector in 2000 and it seems likely that this was from many small employers rather than one or two large employers. Cambria County had done quite well with services as it has been able to attract federal government defense contractors due to the strong efforts of U.S. Congressman Murtha.

11-82 The diversification of Cambria County’s economy into the defense-related services and manufacturing industry is indicative of one type of economic strategy that has worked well to help counteract the struggling manufacturing sector. U.S. Congressman Murtha, as the ranking member of the Defense Appropriations Committee, has helped bring defense-related services sector and manufacturing jobs to the region. For example, Martin Baker, a company that manufactures aircraft ejection seats, sub- contracts out the sewing of the seat covers to sewers in the Johnstown area, who are former textile workers. Among the defense contractors that have been attracted to the region are Concurrent Technologies Corporation (CTC) and DRS Laurel Technologies. CTC has approximately 700 employees in Cambria County and 1,200 employees nationally. CTC occupies three facilities in a mature industrial park near Johnstown. DRS Laurel Technologies, located near the Johnstown-Cambria County Airport, has approximately 325 employees. Concurrent Technologies Corporation has a large percentage of employees with post-graduate degrees and is the type of new employer attracting a more highly educated worker to the county. The company works in the classified and unclassified arenas for government and private sector clients, providing consulting services in education and training, environment and energy, information systems and technology, manufacturing process, and multimedia services.

Additional jobs have also been added to Somerset County in the medical services industry. A new genetics research laboratory and tissue bank was recently constructed on the grounds of the Windber Medical Center at 600 Somerset Avenue in Windber, just off Route 56 in Somerset County, near Cambria County. Windber Research Institute has

11-83 \ has been open since early 2001. Scientists from all over the world, most with PhDs or MDs, applied for jobs there. The venture is a collaborative effort between the Walter Reed Army Medical Center in Washington, D.C. and Windber Medical Center. Patients will come to the Breast Care Center to benefit fiom the most advanced research. Windber is one of three communities in the State of Pennsylvania that are benefiting fiom the tobacco industry settlement with the State of Pennsylvania; the other two communities are Pittsburgh and Philadelphia.

Hospitals in the region are major employers in the services sector. The locations of hospitals are shown on Map K. There are three larger hospitals in the region - Altoona Hospital in Altoona (Blair County), WMC Lee Regional Hospital in Johnstown (Cambria County), and J.C. Blair Memorial Hospital in Huntingdon (Huntingdon County). Smaller hospitals or medical centers include the 25-bed Fulton County Medical Center in McConnellsburg (Fulton County), 40-bed Nason Hospital in Roaring Springs (Blair County), 30-bed Miners Hospital in Hastings in northwest Cambria County, and the 59-bed UPMC Bedford Memorial Hospital in Everett (Bedford County).

Altoona Hospital has changed in the last decade from being a small city hospital to a major regional hospital serving the region. The number of doctors working at the hospital has increased from 80 to 220. The hospital has modem heart, cancer, and trauma units. For persons needing joint replacement, it is the primary hospital serving the area between Pitisburgh and Harrisburg. The hospital is the largest employer in the region,

:! i employing between 2,500 and 3,000 people. The major markets for the hospital are Blair ,, County while tertiary markets are Bedford county, Clearfield County, and northern Huntingdon County. There is unlikely to be employment growth at Altoona Hospital over the next three years because of Medicare and Medicaid cutbacks; more than 50% of the hospital’s patients pay for all or part of their bill with Medicare or Medicaid. In addition, the hospital laid off some workers in late 2001.

UPMC Lee Regional Hospital in Johnstown is also a regional hospital that serves Cambria County and Somerset County. The 249-bed hospital is the largest employer in downtown Johnstown with a total of 1,441 employees including a medical staff of 160 active staff physicians and 250 registered nurses, among others. In 1998, a $13 million expansion program was completed, resulting in a state-of-the-art labor, delivery, and recovery unit, a 6-bed neonatal intensive care unit, and a comprehensive women’s health facility in Richland Township. The John P. Murtha Cancer Center is under construction and will be completed in July 2002.

J.C. Blair Memorial Hospital in Huntingdon has 104 patient beds. The hospital offers a modem intensive/coronary care unit, a state-of-the-art short procedure unit which accommodates same-day surgical procedures, and an emergency medicine department. The hospital beds are divided among medical, surgical, obstetric, pediatric, orthopaedic, and psychiatric. The hospital has over 400 employees.

11-84

..

i, The Fulton County Medical Center (FCMC) has plans to develop a new replacement facility, using a combination of private and federal grant and loan funds. The site overlooks McConnellsburg. The current schedule is to begin construction in November 2002 and open the new facility in December 2003. The current facility employs approximately 300 persons.

The Services sector has a mix of low-paying and high-paying jobs. The regional average annual wages of persons employed in this sector was approximately $24,000 in 2000, as shown in Table 37. Nationally, the Services sector is becoming the dominant employment sector, and the Southern Alleghenies Region is following that trend. Unfortunately, many of the residents of the region have spent much of their life working in the Manufacturing sector and have a hard time making the shift over to the Services sector jobs in the medical industry, hotels, or other sub-sectors not requiring college degrees in engineering, law, medicine, etc. The lower-paying Services sector jobs typically pay less than the Manufacturing jobs while doctors and lawyers may be some of the highest paid people in the regional economy besides corporate executives. On a regional level, average annual wages in this sector showed good growth in 2000, increasing 5.3 percent over the 1999 level.

\

Finance, Insurance. and Real Estate Emdovment Trend

The Finance, Insurance, and Real Estate (F.I.R.E.) sector is not a major job sector in the Southern Alleghenies Region. Included in this sector are banks, savings and loans, ') securities firms (i.e., stock brokers, etc.), insurance companies, insurance agents, real

11-86 estate companies, and investment offices/holding companies. These are some of the types of jobs typically thought of as “office jobs” and are an important part of the diversification of the regional economy.

No large insurance companies or banks are headquartered in the region. There are a few independent banks in the region such as Fulton County National Bank and First National Bank in Fulton County. Promistar Bank, which was a good-sized bank headquartered in Johnstown, was merged into F.N.B. Corporation effective January, 2002 and all the bank branches will take the name of F.N.B. affiliate First National Bank of Pennsylvania, headquartered in the City of Hermitage in Mercer County in northwest Pennsylvania. Thus, most of the headquarters staff in Johnstown will lose their jobs, with a decline in banking employment in this sector in the region likely in 2002.

Crown American Realty Trust (Crown America), headquartered in downtown Johnstown, is a large real estate investment trust company (REIT), and Cambria County has 47 percent of the region’s jobs in the F.I.R.E. sector. Crown America is a self- managed and self-administered real estate investment trust that through various affiliates and subsidiaries owns, acquires, operates, and develops regional shopping malls in the eastern United States, and has a portfolio that includes 27 regional shopping malls.

Employment in this sector declined modestly for two years after 1997, before \ turning up slightly in 2000; the data are shown in Table 38. The short-term outlook for the regional economy probably does not include any growth in this sector and potentially a decline in 2002 due to the Promistar/F.N.B. merger.

11-87 Blair County seems to have taken the brunt of the economic downturn in the region, as the only lay-off identified in this sector also took place in the county. Keystone Financial, a regional financial services company including 187 Keystone Financial Bank offices, had a back-office data processing center in Bellwood in Blair County, near 1-99 north of Altoona. The center was closed in June, 2001, resulting in the loss of 47 jobs. M&T Bank Corporation of Buffalo, New York, acquired Keystone Financial, with the completion of the acquisition announced in October, 2000. The loss of jobs in 2001 is considered typical of post-acquisition corporate cost cutting due to duplication of administrative functions.

The trend in average annual wages in the F.I.R.E. sector are shown in Table 39. The average wages are comparable to those in the Manufacturing sector and, thus, are the type of “family-sustaining” jobs needed.

Construction Sector Emdovment Trend

The trend in number of jobs in this sector is presented in Table 40. Included in this sector are persons working in new home construction, commercial building construction, government building construction (e.g., new Blair County Convention Center), and highway construction. Blair County is the dominant county in the region in terms of providing jobs in this sector, with 32 percent of all construction jobs in 2000. The construction sector has shown modest growth, as companies located in the region work on projects inside and outside the region, in Pittsburgh, the Washington, D.C. area, Harrisburg, etc.

11-88 The ongoing construction of Interstate 99 and the reconstruction of sections of the Pennsylvania Turnpike may have provided a significant number of jobs. Between 1999 and 2000, Blair County and Cambria County experienced slight declines in number of construction jobs, while the other counties in the region experienced moderate increases. The future outlook for this sector is difficult to predict, but it is likely that it will be at least stable for the next five years, because there is still a lot of highway construction still taking place in the region and some private sector commercial projects (e.g., new office or industrial buildings) or government building projects are likely to be undertaken.

,!

The trend in average annual wages in the construction sector is presented in Table 41. The average wages are below those in the manufacturing, T.C.P.U., and F.I.R.E. sectors, but are above average wages in the retail trade and services sector. Bedford County's wages in this sector are well above all the other counties in the region, and we were unable to identifj the reason for this anomaly.

11-89 Mining Sector Emdovment

Coal mining was once a major industry in the Southern Alleghenies Region but i today there are few jobs in coal mines or in strip mining. There may be some gravel mining but information was unavailable. Data on mining companies were suppressed for most counties in the region by the Pennsylvania Department of Labor because of the relatively few establishments, but market data avaiIable suggest that there are less than 2,000 jobs in this sector in the entire region. This is an unlikely growth sector for the regional economy and no emphasis was given to mining in the economic development strategy. Wage data were unavailable.

Agricultural Sector Employment

Many farmers, loggers, persons operating fishing boats on lakes, and other workers in this sector are not payroll employees, so state data do not reflect the true picture in this sector. Data on establishments in this sector were suppressed for most counties in the region by the Pennsylvania Department of Labor because of the relatively few payroll establishments, but market data available suggest that there could be more than 10,000 jobs in the region in this sector, mostly self-employed persons. Farming is a significant part of the regional economy. Wage data were unavailable.

11-90 Farming Sub-sector

Farming is a relatively stable sub-sector of the agricultural sector of the regional economy. The farming sub-sector contains mostly small farms, with the average farm size being 170 acres in 2000. Due to the hilly topography of much of the region, it is not ideal for most large-scale (e.g., 10,000 + acres) types of agriculture. Somerset and Bedford County have the largest numbers of farms and acres of land in farm use, followed by Huntingdon, Cambria, Fulton, and Blair.

As shown in Table 42, the number of farms in the region increased between 1996 and 2000, from 4,290 to 5,040, or about 188 farms per year on average. However, the average size of farms in the region decreased from 197 acres to 170 acres, which suggests that larger farms are being sub-divided by families into several smaller farms. Many of the persons working on farms in the region are self-employed. A reasonable estimate is that a minimum of 10,000 persons work on the 5,040 farms (2 persons per farm average). Labor force data (based on payroll establishments with employers paying unemployment insurance) indicated that 5,700 persons worked in farming, forestry, or fishing occupations in the region in 1990.

In 2000, approximately 854,500 acres were in active farm use in the region. A comparison of the total acres of land in active farm use in 2000 versus 1996, presented in Table 41, shows that the number of acres in agricultural use increased by 8,000 over the ') four-year period, about one-tenth of one percent growth. Somerset County and Huntingdon County experienced decreases in the supply of land in active agricultural use, 14,000 acres and 4,500 acres, respectively. Blair, Cambria, and Fulton County experienced increases in acreage, while the Bedford supply remained flat.

For the overall region, the supply of land in active agricultural use in the region is unlikely to increase significantly in the short-term, medium-term, or long-term, primarily because of topographical challenges, economic challenges, and,competition for fmn land by residential uses.

Agricultural extension agents in the counties comprising the region indicated that one of the major threats to the agricultural sector is loss of agricultural Iand in active production to persons from outside the region who are buying farms for retirement homes. A second threat is that small farms are unable to make enough income to stay in business because of low commodity prices. A third threat is the current drought ' conditions.

The most positive trend in the farming sector is the increase in dairy farms in the region. Amish and Mennonite farmers from the Lancaster area of eastern Pennsylvania and from other areas are migrating with their dairy herds to the region, in search of inexpensive land. Both Somerset County and Bedford County have benefited &om this trend, with an increase in total cows and dairy farms.

11-91 j Economic issues facing this sector include: protection of agricultural land from conversion to residential uses; the need for programs to subsidize agricultural land rents and prices because values have become too high; a need for more bds for farm preservation programs; funds for capitaf investment financing for dairy farmers that want to remodel their barns and expand their herds; and education programs for Amish, Mennonite, and other small farmers on technological changes that can help them improve their yields; and education of non-farmers on the unattractive aspects of farming business such as nutrient management, so that residents can co-exist in harmony.

Hardwoods Industrv

The hardwoods industry in the Southern Alleghenies region contributes manufacturing jobs and forestry (agriculture) jobs. A recent report indicated that there are approximately 1.9 million acres of timberland in the region and 3.3 billion board feet of standing saw timber. The rural and heavily forested character of the region allows for the hardwoods resource to be available. Data indicate that this sector is probably stable or growing slowly in terms of number of jobs in 2002, and could become more important in the future.

The hardwoods industry includes payroll jobs falling into two sub-sectors in the regional economy: forestry in the agricultural sector and the following three sub-sectors in manufacturing: lumber/wood products; furniture and fixtures; paper and allied

11-92 i products. Insuficient data were available on jobs in the forestry sub-sector of the i . .. agricultural sector to determine trends.

Some experts believe that the forest resources in the Southern Alleghenies region could contribute more to the economy. The region has one of the most productive timber resources in the Eastern United States, yet local companies ship lumber to other areas to be processed. It may be possible to develop a viable forest product industry in the region.

Hardwoods are one of the products exported internationally from the region. Wenturine Brothers Lumber, Inc. in Nicktown in northwest Carnbria County was recognized as a “Pennsylvania 100 Company” by the Pennsylvania Department of Community and Economic Development for its impressive export sales growth between 1997 and 1999.

Presented in Table 43 are trends in the manufacturing sub-sectors related to the hardwood industry. The closure of the Westvaco manufacturing plant in Tyrone (Blair County) in November 2001 is not reflected in these data; the plant manufactured coated paper.

Approximately 400 jobs were added in the lumber and other wood products sub- sector over the period fiom 1996 through 2000. Complete data were unavailable for the other sub-sectors.

11-93 . .._ ...\ ..... Economic Development Focus Areas

Four economic development focus areas have been discussed below: tourism, retail, business and industrial parks, and high-tech. These are four areas that have been areas of focus by economic development officials in the region, and a deeper analysis, beyond job growth, has been included as a basis for the vision and strategy.

The tourism industry is a small but a growing part of the Southern Alleghenies regional economy. Much of the tourism in the region now is “passing-through” tourism where people have a meal andor stay a night in a hotel on their way to other places. There is a growing emphasis on upgrading tourism attractions to try to capture more of the weekend get-away and summer vacation market as well as tourism support facilities (hotels, restaurants, visitor centers, etc.) as it is seen to have the dual effect of improving the quality of life for residents (e.g., residents also ski) as well as contributing to the regional economy by providing additional jobs, albeit mostly lower-paying jobs. Tourism attributes are also important to employers in other sectors, because they may need to have visiting clients and corporate visitors stay in good-quality hotels and dine at a variety of restaurants.

Three geographic markets have the most potential for generating tourism for the Southern Alleghenies Region: (1) the Maryland and Virginia suburbs of Washington, D.C. using Interstate 70 to access the region; (2) the Pittsburgh and northeast Ohio area using the Pennsylvania Turnpike, U.S. 22 or U.S. 422 for access; and (3) the Harrisburg and southeast Pennsylvania area using the Pennsylvania Turnpike, U.S. 22622, or U.S. 30 for access. Tourism stakeholders in the region have called Pittsburgh, Hamsburg, and the Washington, D.C. area three points in a triangle, with the tourist attractions of the region serving different leisure fulfillment needs of the more than 2 million people that live in the market area.

Tourism Attractions. Most of the tourism attractions of the Southern Alleghenies Region, which attract leisure travelers and have no influence on business travelers except for some convention pups, can be grouped into two major categories: outdoor recreation opportunities and history/cultural heritage. Unfortunately, these attractions are average when compared with other regions of the United States. For example, the scenery and skiing opportunities offered by the Southern Alleghenies mountain range cannot be compared to those offered by the Rocky Mountains of Colorado or White Mountains of New Hampshire. The historical attractions do not have the pull of Colonial Williamsburg in Virginia or The Alamo in San Antonio.

In addition, the region does not have a tourism image, such as “Amish Country”. Nevertheless, our interviews indicate that significant effort by multiple organizations as well as the private sector has been made to develop and market the attractions of the

11-94 region and this effort has started to “pay-off” with recreationaVtourism projects like the Great Allegheny Passage trail system and Pennsylvania’s Millennium Legacy Trail: The Pittsburgh to Harrisburg Mainline Canal Greenway.

The tourism attractions in the region have been listed below by category as follows:

Performing Arts and Fine Arts

e The Altoona Community Theater in Blair County 0 Johnstown Symphony Orchestra in Carnbria County ‘0 The Playhouse at McConnellstown, McConnellstown, Huntingdon County e Mountain Playhouse, Jennerstown, Somerset County e Juniata College Museum of Art 0 Raystown Lake Amphitheatre events (summer) 0 Bedford County Arts Council events 0 Huntingdon County Arts Council events Amusement Parks

0 DelGrosso’s Amusement Park, Tipton, Blair County 0 Lakemont Park and The Island Waterpark, Altoona, Blair County

Professional Sports

Altoona Curve Baseball Club, Altoona, Blair County 0 Johnstown Chiefk Ice Hockey, Cambria County

Adventure Suorts

0 Cliff Jumping/Diving at Raystown Lake, Huntingdon County e Parasailing at Raystown Lake, Huntingdon County 0 Scuba Diving at Raystown Lake, Hunthgdon County 0 River Canoeing and Rafting, Bedford County

Car Racing

0 Hesston Speedway, Hesston, Huntingdon County 0 Jennerstown Speedway, Jennerstown, Somerset County

11-95 ..

Bird-Watching

0 Canoe Creek State Park in Hollidaysburg, Blair County 0 Hillside Nature Trail, Raystown Lake, Hesston, Huntingdon County

Boating and Cruise Boats

0 Raystown Lake, Hesston, Huntingdon County 0 Prince Gallitzen State Park

Caves & Caverns

0 Indian Caverns, Spruce Creek, Huntingdon County 0 Lincoln Caverns, Huntingdon, Huntingdon County

Children’s Attractions

0 Quaint Comer Children’s Museum, Altoona, Blair County 0 Slinky Action Zone, Duncanville, Blair County 0 Water Trampolines at 7 Points Beach, Raystown Lake, Huntingdon County

Covered Bridges j ..i

0 Bedford County offers a covered bridges driving loop 0 St. Mary’s Covered Bridge, Hesston, Huntingdon County

Gardens and Arboretums

0 Mt. Assissi Gardens, Ebensburg, Cambria County

Fairs, Festivals. Events (Partial Listing)

Huntingdon County Fair, Huntingdon, Huntingdon County Bedford County Fair, west of Bedford, Bedford County Cambria County Fair, Ebensburg, Cambria County Bedford’s Fall Foliage Festival, Bedford, Bedford County Heritage Holidays in the AIleghenies, Altoona, Blair County Johnstown Folkfest, Johnstown, Cambria County East Broad Top Railroad’s Fall Spectacular, Rockhill Furnace, Huntingdon county 0 Thunder in the Valley Motorcycle Rally, Johnstown, Cambria County 0 The InternationaVTour de ‘Toona Bike Race, Altoona, Blair County

Farmer’s Markets

Huntingdon Farmer’s Market, Huntingdon County

11-96 '! 0 Ebensburg Farmer's Market, Cambria County

Fishing 0 Raystown Lake, Huntingdon County 0 Juniata River, Huntingdon County 0 Spruce Creek Private Trout Fishery, Huntingdon County 0 Ice Fishing at Greenwood Lake, Raystown Lake, Whipples Lake, Huntingdon county 0 Glendale Lake in Prince Gallitzin State Park, Cambria County

0 Bedford Springs Golf Course, Bedford County 0 Standing Stone Golf Course, Huntingdon, Huntingdon County 0 Hidden Valley Resort, Hidden Valley, Somerset County 0 Seven Springs Resort, Champion, Somerset County 0 Immergrun Golf Course (9-Hole), Loretto, Cambria County 0 Appledale Public Golf Course (g-Hole), Ebensburg, Cambria County 0 Ebensburg Country Club, Ebensburg, Cambria County

Hiking and Biking Trails

0 Allegheny Trail Alliance - Cumberland to Pittsburgh Trail 0 1,000 Steps Trail, Hesston, Lake Raystown, Huntingdon County 0 Great Allegheny Passage Bike Trail - portion in Somerset County 0 Pittsburgh-Harrisburg Mainline Canal Greenway/Legacy Trail (under development) 0 Lower Trail, 12-Mile Rail Trail, Huntingdon County

Hunting

0 Thousands of acres in Huntingdon County, Fulton County Some land offering hunting opportunities in Somerset County, Cambria County, Bedford County, and Blair County

Lake Swimming

0 Raystown Lake, Greenwood Lake, Huntingdon County 0 Glendale Lake in Prince Gallitzin State Park, Cambria County

Downhill Skiing

0 Blue Knob Resort, Claysburg, Blair County

j 0 Hidden Valley Resort, Hidden Valley, Somerset County ... 0 Seven Springs Mountain Resort, Champion, Somerset County

11-97 Cross-Country Skiing;

Blue Knob State Park, Bedford County

Snowmobiling

Rothrock State Forest, Huntingdon County’

HistoricalEducationaI Attractions/Museums/J3attlefields/Forts

Disaster’s Edge Environmental Center, Ebensburg, Cambria County Old Bedford Village, Bedford, Bedford County Somerset Historical Center, Somerset, Somerset County Rockhill Trolley Museum, Rockhill, Huntingdon County Altoona Railroaders Memorial Museum, Altoona, Blair County Johnstown Flood Museum, Johnstown, Cambria County Fort Bedford Museum in Bedford, Bedford County Fort Roberdeau Historic Site in Altoona, Blair County Captain Phillips Rangers Memorial, Hesston, Huntingdon County ... ,,. :. I Swigart Antique Auto Museum, Huntingdon, Huntingdon County I Jean Bonnet Tavern (haunted), Bedford, Bedford County Allegheny Portage Railroad National Historic Site, Galltizin, Blair County East Broad Top Railroad, Rockhill Furnace, Huntingdon County Horseshoe Curve National Historic Landmark, Altoona, Blair County Hunt Tower Transportation Museum, Huntingdon, Huntingdon County Johnstown Heritage Discovery Center, Cambria County Windber Coal Heritage Museum, Cambria County . Broad Top Area Coal Miners Museum, Robertsdale, Huntingdon County Allegheny Ridge State Heritage Park - Blair, Cambria, Somerset, Huntingdon Greenwood Furnace Historic Walking Tour Keystone Museum Foundry, Hopewell, Bedford County Riddlesburg Coke Ovens, Riddlesburg, Bedford County Johnstown Inclined Plane, Cambria County

Historic Downtown Areas and Homes

Bedford, Johnstown, Huntingdon Baker Mansion, Altoona, Blair County Espy House, National Historic Landmark, Bedford, Bedford County Alexandria Historic District, Huntingdon County Robertsdale Historic District and Waking Tour, Huntingdon County

11-98 .. -.. : i! Business and Industry Tours

0 Cannondale Bicycles Factory Tour, Bedford, Bedford County 0 Evergreen Dairy Farm Tour, Spruce Creek, Huntingdon County 0 Gardner's Candles, Tyrone, Blair County 0 Benzel's Bakery Factory Outlet, Altoona, Blair County

Scenic Overlooks/Scenery

0 Conemaugh Gap Scenic Overlook, Rt. 56, Cambria County 0 Scenic gorge - Trough Creek State Park 0 Johnstown Flood National Memorial, St. Michael, Cambria County 0 Johnstown Inclined Plane, Johnstown, Cambria County

Shopping

0 The Shops at Georgian Place Outlet Mall, Somerset, Somerset County The Galleria Shopping Mall, Johnstown, Cambria County 0 The Antique Depot, Duncansville, Blair County 0 Founders Crossing Artisan and Antique Merchants, Bedford, Bedford County 0 Bison Corral Gift Shop, Schellsburg, Bedford County \ I ,I ...... Tourist Visitors Centers

0 Raystown Lake Visitor Center and Exhibit Area 0 Johnstown Heritage Discovery Center

Wineries

0 Oak Spring Winery, Altoona, Blair County

State Parks and Forests

0 Warrior's Path State Park, Bedford County 0 Blue Knob State Park, Bedford County 0 Shawnee State Park, Bedford County 0 Greenwood Furnace State Park, Huntingdon County 0 Trough Creek State Park, Huntingdon County 0 Raystown Lake Recreation Area (U.S. Army Corps), Huntingdon County 0 Rothrock State Forest, Huntingdon County 0 Cowans Gap State Park, Fulton County 0 Prince Gallitzin State Park, Cambria County

11-99 Strendhs and Weaknesses. The strengths and weaknesses of the tourism industry in the Southern Alleghenies region have been presented below in summary form.

Good highway system which is improving, linking the region to major markets to the west (Pittsburgh) and to the southeast (Washington, D.C. area) Three ski areas (Blue Knob, Hidden Valley, and Seven Springs) Three four-season resorts (Blue Knob, Hidden Valley and Seven Springs) Raystown Lake - one of the largest lakes in Pennsylvania Many cultural heritage attractions, most tied to the railroad, coal mining, or steel industries. Good hunting and fishing New convention center in Blair County Johnstown building new conference center

Weaknesses

No major tourism attraction with mass-market appeal like Disney World, Colonial Williamsburg, etc. Tourism attractions mostly limited to outdoor recreation and history/cultural heritage The two cities, Altoona and Johnstown, are not big draws although they do have some interesting tourist attractions No major airport; 90% or more of leisure tourists drive-in or drive-through Lack of fine dining restaurants outside of four-season resorts Lack of interesting, unique shopping opportunties No casinos Lack of regional image in the Pittsburgh, D.C. Area, and other markets due to diverse character of the area The region is not cohesive for the tourism sector because the resorts at the west edge of Somerset County are only 60 miles from Pittsburgh, but 180 miles from Baltimore and 191 miles from Washington, D.C. Region marketed as two regions - Laurel Highlands and Southern Alleghenies while economic development marketing for just Southern Alleghenies Tourism a low wage business - good for secondary income earners, students, summer jobs

These data show that the strength of the region are its proximity to the population centers of the Washington, Pittsburgh, and Harrisburg regions and the ability to provide these population centers with quality outdoor locations year round. The weaknesses are: (.1) the lack of a major tourist facility, with Raystown Lake and Seven Springs Mountain Resort being the best; ind (2) the great dependence on weather-related resorts, especially skiing.

11- 100 Resources. The Southern Alleghenies Region has a significant level of resources in place in terms of business organizations directly or indirectly involved in the promotion of the local tourism industry. The region is well-positioned to handle growth in the tourism industry in terms of resources. The Southern Alleghenies Regional Tourism Confederation is a regional tourism planning and marketing organization. Some of the tourism organizations in the region are listed in Table 44.

Hotel Rooms. The distribution of hotel rooms by county in the Southern Alleghenies Region is presented in Table 45. While Somerset County has nearly half of all lodging employment, it has only 29 percent of all hotel rooms, which indicates that a large component of its lodging supply is condominiums in rental pools.

II-101 i. . ..

..

Hotel Room Additions 1995-2001. The region added ten hotels during the last 7 years, but also lost a few motels. The Howard Johnson in Ebensburg (Cambria County) was converted to a senior residential facility. The Days Inn-Johnstown also had some "\1 rooms converted for use as an Assisted Living Facility. Several independent motels closed during the 199Os, but information about those properties was unavailable. No full-service hotels were added. All the additions were limited service properties and are franchises of national hotel chains. The new hotels added to the region within the last 7 years include the following:

71 room Hampton Inn-Bedford opened in February 1998 57-room Super 8 Bedford opened in September 1999 75-room Holiday Inn Express-Breezewood opened in July 2000 11 0-room Wampton Inn-Altoona opened in February 1998 105-room Marriott Courtyard-Altoona opened in August 200 1 11I-room Hampton Inn-Somerset opened in December 1996 105-room Days Inn-Somerset opened in September 1999 47-room Motel 6-Johnstown opened in May 1997 62-room Sleep Inn-Johnstown opened in March 1997 65-room Super 8-JohnstownAirport opened in January 1998

The trend in new hotel room additions by County over the past six years is summarized in Table 46. As shown, Fulton and Huntingdon counties added no new hotel rooms over the past 6 years, while the other counties added between 174 and 216 rooms. New hotel rooms were added every year since 1996, except 1998, which was the peak year with 246 rooms added. The 808 rooms added over the last seven years.represent .: .'\, .. approximately 17 percent of total hotel room supply.

11- 102 Hotel OccuDancv Trends. In order to determine how well the lodging industry is performing in the region, we relied on sample survey data from Smith Travel Research, an industry leader in nation-wide lodging research. Survey data was analyzed on a sample of 31 existing hotels in the region, with a current aggregate total of 2,970 rooms. The results, shown in Table 47, indicate two major trends. First, the lodging industry in the region has moderate mom rates overall, The average room rates of hotels has climbed steadily from $48.52 in 1995 to $56.80 in 2000. While some of the resort properties like Seven Springs have room rates above $150 at different times, and even higher rates for villas, chalets, or apartment-style units, the majority of properties cater to business and leisure travelers seeking a moderate room rate.

Second, there is a pressing need to attract more hotel room demand for existing capacity; the 2000 occupancy of 53.6% is nearly 10 point below the national occupancy level of 63.7% in 2000. The hotel room occupancy declined over recent years, meaning that the room additions shown above did not generate as much new hotel room demand as may have been anticipated. The total number of occupied room nights in 2000 was 44,410 higher than in 1995, which indicates support for only 170 to 200 additional rooms (e.g., 175 rooms multiplied by 365 days multiplied by 70% annual occupancy is 44,700 occupied room nights) while 808 rooms were added during the period 1996 io 200 1.

11- 103 The region has numerous old, outdated hotels. The hotel additions over the past six years greatly improved the quality of hotels, as all were national chain affiliated hotels and the Marriott Courtyard is located next to the new convention center. All of the newer hotels are realizing adequate rates. This would be to the loss of business at the older, more modest hotels.

11- 104 .. .

Proposed Hotel Proiects

Several proposed hotel projects in the Southern Alleghenies Region were identified. These have been summarized as follows:

0 Seven Springs Mountain Resort is proceeding with a 3-phase, 5-year (2001- 2005), plan that includes in excess of $80 million in resort improvements and $150 million in residential communities. Phase I1 of the resort’s plan, for Fiscal Year 2002-2003, includes a new slopeside hotel, and the renovation and expansion of Tahoe Lodge. Other features of the plan include a mixed-use Bavarian Resort Village, an indoor/outdoor water park, new ski terrain and lifts, and three housing communities. A new, high-speed, six-person chairlift, known as the Polar Bear Express, was put into operation in December, 2001.

0 Countrv Inns and Suites is the national franchise affiliation planned by a developer that is taking steps to develop a 75-room hotel in Huntingdon in Huntingdon County. The developer plans to start construction in 2002 and open the hotel by 2003.

0 The Bedford Sprinps Resort Hotel near Bedford iri Bedford County, closed

.. . ~. since 1985, may undergo a major redevelopment, which would result in a new 1 200+/- room upscale golf resort hotel opening in the eastern part of the Southern . .. Alleghenies Region by 2004. The Bedford County Redevelopment Authority and Stormont Hospitality Group have been studying the deal.

0 The Huntinpdon Countv Business and Industrv Association has been actively marketing a hotel site at the intersection of U.S. Route 22 and State Route 26 in Smithfield Township, Huntingdon County, Pennsylvania. This project has not proceeded as fast as expected. Economic development officials have indicated that one developer is very interested in developing a 75-room Comfort Inn & Suites.

11-1 05 I I RETAIL INDUSTRY

The retail industry is stable in the region, but faces the risk of declining because of weak household growth and moderate household incomes. .

Anchor Retail Stores. The Southern Alleghenies Region has only two shopping malls: Logan Valley Mall in Altoona and the Johnstown Galleria in Richland Township (Cambria County). Logan Valley Mall is anchored by J.C. Penney’s, Kaufinann’s, and Sears. Johnstown Galleria is anchored by Bon Ton, J.C. Penney’s, and Sears.

A list of other anchor stores in shopping centers and free-standing big-box retailers in the region is presented in Table 48.

11-106 Several trends are evident in the region in regard to retail anchor stores:

1. As with national trends, the discount department stores are expanding which is resulting in the loss of sales at the oider, fashion department stores.

2. All of the major expanding anchor stores-WalMart, Target, Lowe’s and Home Depot--are in the region, but the Johnstown area lacks a Target and the Altoona area presently has no Home Depot.

3. Almost all of the anchor stores are located in the two counties with the largest population.

4. It will be hard for the region to add more retail space with a declining population, unless several existing stores close.

One weakness of the retail trade sector in the region is that it is dominated by big- box retailers targeting the middle-income or moderate-income household. In addition, retail development is concentrated near Altoona and Johnstown, and residents of Bedford County, Huntingdon County, and Fulton County are more likely to shop outside the region in State College, Chambersburg or in Hagerstown, Maryland, which are as close as the Altoona and Johnstown malls. There are a few locations in the region where there are specialty stores for tourists, such as Breezewood, but that is the exception. There are not many cinemas in the region except in Altoona, which has two CarMike Cinemas with a total of 15 screens. Otherwise, residents travel to State College (Centre County) or Chambersburg (Franklin County) for movie theaters.

In general, the region’s retail sector is not strong. There are very few specialty stores in the region and mostly moderate-priced chain restaurants. The area’s demographics have hurt most retailers and net growth in this sector will be difficult without a change in population trends and household incomes.

11-1 07 .. .

INDUSTRIAL DEVELOPMENT

Economic development agencies in each of the counties comprising the region typically have industrial development as one of their top priorities. Related to this priority is the creation of industrial and business parks and the sale or development of lots therein. Local officials have done an excellent job of adding industrial park properties under the constraints of: (1) infrastructure problems; (2) available funds; (3) well-located land; and (4) environmental concerns.

Providing developable industrial land is an important part of economic development in the region. However, adding industrial land is not the key to successll economic development and job growth in the region. The key is to open up properties that expand the type of business that can locate in the region or expand. Thus, sites that offer an upgraded setting for non-manufacturing and warehouse settings are needed so that a more diversified type of business can locate in the region.

Throughout the Southern Alleghenies Region, there are former commercial properties and industrial facilities that have been closed and abandoned. Many of these properties remain abandoned or underutilized. These types of properties are commonly referred to as “brownfield” sites. Brownfields are defined as abandoned, idled, or under- used industrial and commercial facilities where expansion or redevelopment is complicated by real or perceived environmental contamination. Brownfield sites in the region blight the landscape, act as a drag on local economies and inhibit the reuse of valuable property. Economic development officials in the region are continually working to rehabilitate sites and have them reused. Brownfield sites are shown on Map L.

No pure corporate office and r&d parks have been.developed in the region because the economy has been so oriented towards manufacturing, warehousing and distribution, and other “industrial” development. However, some corporate ofice or r&d buildings have been developed at various locations. Industrial or business parks (mix of industrial, flex, and office) have been the norm.

In October, 1998 The General Assembly of Pennsylvania established an act providing for the creation of Keystone Opportunity Zones (KOZ’s) to foster economic development in the State and to prevent physical and infrastructure deterioration of existing industrial and commercial areas. The State authorized expenditures for infrastructure development and tax abatements and credits inThe KOZ’s as a means to generate increased economic activity. The Southern Alleghenies Region contains 18 Keystone Opportunity Zone (KOZ) sub-zones totaling approximately 3,500-acres of available land. These KOZ sub-zones consist of brownfield sites, rural properties available for creative development opportunities, and property within industrial parks that is ready for immediate occupancy. A majority of the brownfield sites in the Southern Alleghenies Region are located in Cambria County, primarily around Johnstown. This is mainly due to large number of industrial facilities once in operation in this area. , ,‘I

11- 108

Almost all counties in the State of Pennsylvania established KOZ sites, whereby existing businesses or new businesses could take advantage of tax abatements over a 12- year period, starting in January 1, 1999. These sites represent the expected primary growth areas for the 2000-2010 decade, as KO2 properties are typically well located and many were sites that were being marketed or expected to be marketed to developers or industrial companies prior to the KOZ program.

A list of the newer or most active industrial and business parks in the region is presented in Table 49. There is land available in industrial parks or business parks in each of the six counties and there is also land available in various Keystone Opportunity Zones. Sites for industrial opportunities are shown on Map M.

%.., . j .. .., .r'

Bedford County and Somerset County are both in the process of planning new industrial parks. Huntingdon County would like to have Huntingdon Business Park rehabilitated and revitalized. In Blair County, private developers are planning the 300- acre 17* Street Technology Park, a high-tech office and R&D park in Altoona at 1-99 and the 17* Street interchange.

North Star in Somerset County is a KOZ property that is being readied for development by 2003. The site is well-located between Somerset and Johnstown on Route 219. It is very visible and will offer Somerset officials with a new business park property rather than just a manufacturing and warehouse setting.

: 'i .I .', .....'

11-1 10

JARI opened a new industrial park in Johnstown. There is an attractive incubator located there. JARI hopes to expand the industrial park in 2003 or 2004.

Resources. The Southern Alleghenies Region has a significant level of resources in place in terms of business organizations directly or indirectly involved in industrial development. A list of organizations supporting industrial and economic development in the Southern Alleghenies Region is presented in Table 50. The region is well-positioned to handle growth in industrial development in terms of resources. However, industrial development tends to be one area where each county competes against each other. If the region as a whole unified in a marketing campaign to attract new industrial employers, the chances of attracting some major companies might improve.

i

11-1 12 ..

Economic Development Programs

The economic development organizations in the six counties comprising the region use a variety of programs to help attract new industrial companies as well as retain, modernize, and expand existing industrial employers. Some of the recent activity in this area is summarized in the following paragraphs. Blair County

In 1999, Altoona-Blair County Development Corporation assisted clients in obtaining over $3 1.6 million in total financing using programs or funding sources such as SBA 504, Enterprise Development Loan Fund (EDLF), Pennsylvania Industrial Development Authority (PIDA), IDP, RFA, FACADE, Machinery and Equipment Loan Fund (MELF), EZ, EZC, Enterprise Zone Tax Credits, (Blair County Industrial Development Authority (BCIDA), and MCIDC. More than 600 jobs were created or retained. Some of these funds were programs directly administered by ABCD.

In 2000, ABCD helped its clients receive more than $58 million in financing. Securing over $23 million for the Sheetz Distribution Facility in Southern Blair County was ABCD’s largest project. Some of the programs or funding sources used in 2000 that were not used in 1999 included: Enterprise Zone Revolving Loan Fund (EZRLF), EZ Comp, TIC, and Pennsylvania Economic Development Financing Authority (PEDFA). A synthetic lease of $22,675,000 was used for Sheetz, Inc.’s land acquisition and building construction.

Cambria County

The City of Johnstown created or retained jobs through use of various programs and hding sources. In 1998, the public sector invested $5,300,000 into economic development projects with a total project cost of $12,600,000,resulting in 1,349 jobs created or retained. In 1999, the public sector invested $2,005,400 into economic development projects with a total project cost of $8,547,795,resulting in 736 jobs created or retained. In 2000, the City’s Loan Review Committee delivered funds to various entrepreneurs, loaning $970,000 and leveraging $4.3 million in private investment, resulting in the creation of 60 jobs.

Businesses expanding in Johnstown can take advantage of three direct loan programs which offer maximum loans of $100,000. The Jobs Development Loan Program (JDL) assists small businesses by providing financial support to entrepreneurs; projects may involve a start-up business or expansion of existing businesses. The Enterprise Development Loan Program (EZP) was established to provide financial assistance to small and medium-sized manufacturing businesses or exporters of products or services. The UDAG Revolving Loan Fund is earmarked for those developmental activities deemed inappropriate under the JDL or EZP programs, and private businesses

11-113 or not-for-profit organizations wishing to undertake new or expansion projects may qualify for the revolving fund.

Another program available in Johnstown is the socially and economically restricted business program (SERB), designed to promote the use of small and emerging, disadvantaged businesses, to give them opportunities to participate in state contracting.

Under the Enterprise Zone Tax Credit program, up to $250,000 annually in state tax credits are made available to businesses within the City of Johnstown’s Enterprise Zone. If approved, the amount of state tax credits is equal to 20 percent of eligible project costs up to the maximum $250,000 that is available in any one fiscal year.

Other financing programs available in Johnstown through the city’s partnership with other agencies include the Community Economic Development Loan Program (CED) and Small Business First Fund (SBFF).

Other Counties

Huntingdon County, Somerset County, Bedford County, and Fulton County also use a variety of programs to help existing manufacturing companies in the region.

Huntingdon County plans to establish a Pennyslvania Enterprise Zone in the Mount Union area. In addition, the county would like to use EDA Title IX SSED funds to pursue redevelopment and revitalization of Huntingdon Industrial Park.

In Bedford County, Green Garden Inc., a lawn and garden accessories manufacturer, was awarded an $I 15,000 low-interest loan by the Southern Alleghenies Planning and Development Commission. The company will use the loan to acquire 200- ton injection molding machines.

11-1 14 “HIGH-TECH” BUSINESS LOCATION

The term “high-tech” has been overused. However, in general it can mean “advanced”, “cutting edge”, “state-of-the-art”, and suggests use of some of the most modem technologies available, whether they be medical lasers, electronics, robotics, fiber-optics, or other technologies. In addition, “high-tech” generally suggests that the persons using the technology may require higher education levels or highly developed skills in order to perform research and effectively use advanced technology. Thus, there is a often a positive linkage between research conducted on college or university campuses, and “high-tech” industries.

The most widely understood and basic “high-tech” concept is for all employees of a company to have access to a computer and have high-speed Internet access. This is because the Internet allows global linkages at a fraction of the cost of phone calls.

Many of the Fortune 500 companies such as General Motors, or Delphi-Packard, have major research and development departments, so trying. to attract small high-tech companies does not necessarily promise any more high-tech employment generation than one large company. However, the hoped for result is that a small high-tech company will start in the area, then grow tremendously because of demand for its new technology, and always keep a core presence.

Both Cambia County and Blair County have been working on strategies related to the “high-tech” concept. One reason for this strategy is diversification away from traditional “old economy” manufacturers because of the fear that they will move to lower-cost labor areas outside the region, including foreign countries. The other reason is to attract employers that need graduates of 2-year programs at community colleges, or 4-year degree programs at Perm State-Altoona, Perm State-State College (outside region), Juniata College, and other colleges and universities in the region, in order to stop the “brain drain.”

Johnstown has been the most successful of the counties’in the region in attracting high-tech employers, mostly related to the defense industry. This is due in large part to the efforts of US.Representative John Murtha. The Johnstown Renaissance Partnership funded a 37-page study entitled, Johnstown’s Vision: A Future Driven bv Technoloay, prepared by Concurrent Technologies Corporation and submitted July 2000. The Johnstown Area was rated among the Top 50 High-Tech Metropolitan Areas in high technology output during the period 1990-1998, as indicated in a 1999 Milken Institute Report. Companies like Concurrent Technologies Corporation (750 + employees) and Laurel Technologies (275 + employees) are examples of success stories in this area.

In July 2000, Concurrent Technologies Corporation prepared a study for the Johnstown Renaissance Partnership called Johnstown’s Vision: A Future Driven by Technology, Some of the ideas in that report have been included in the goals and objectives for the region. Johnstown Area Regional Industries recently commenced with

11-1 15 .. .\ .i., development of a High-Tech Center in an office building in Johnstown, and will be using 10,000 square feet to create a business incubator to help develop smaller technological fiI-m.9.

Blair County, with the leadership of ABCD, has had a major focus on high-tech over the last few years. The county is considering the establishment of a local technology hnd, has been working with Penn State Altoona on its emerging entrepreneurial curriculum, working to capitalize on intellectual and technology resources represented by Penn State’s main campus in State College (Centre County), and working to build a high- speed communication infrastructure in the county, among other steps.

In Somerset County, the new “high-tech” Windber Medical Center is attracting top medical researchers fiom around the country as well as international talent. The Windber Research Institute is located just off Route 56. Additional jobs have also been added to Somerset County in the medical services industry. A new genetics research laboratory and tissue bank was recently constructed on the grounds of the Windber Medical Center at 600 Somerset Avenue in Windber, just off Route 56 in Somerset County, near Cambria County. Windber Research Institute has been open since early 2001. Scientists fiom all over the world, most with PhDs or MDs, applied for jobs there. The venture is a collaborative effort between the Walter Reed Army Medical Center in Washington, D.C. and Windber Medical Center.

The Altoona-Blair County Development Corporation (ABCD), the economic development organization for Blair County, has made a major initiative to change the focus of the county economy away fiom “old economy” manufacturing. The Blair Tech Council was formed in 2001, and also the Corridor Alliance. The Blair Tech Council consists of 9 companies, including 4 software developers. Onehalf the employees of the companies were not born and raised in Blair County. They have been attracted by the quality of life in the area. Thus, the county is shifting its marketing efforts. Mountain Research is one of the companies. ABCD has worked at establishing strong linkages with the main campus of Penn State University in State College in Centre County, which is outside the region, due to the amount of research and development work that occurs there. The Keynet concept is being put into place by Adelphia Communications - providing broadband service to the county, which is linked to Global Crossing and Williams Communications. The cable or wires necessary for high-speed telecommunications and Internet are in a trunk line extending along Interstate 99 and the Norfolk-Southern Mainline. Global Crossing and Adelphia are both having financial difficulties, which is an indication of problems facing the “high-tech” communications sector. The proposed new 300-acre 17* Street Technology Park in Altoona will be oriented to technology companies.

i

11-1 16 COLLEGES AND UNIVERSITIES There are eight colleges and universities with main campuses or branch campuses in the region, as follows: Penn State Altoona; St. Francis University; Mount Aloysius College; Cambria County Community College; University of Pittsburgh - Johnstown Campus; Allegany College of Maryland - Somerset Campus; Allegany College of Maryland - Bedford Campus; and Juniata College. The locations of colleges and universities, as well as high schools, trade schools, and vocational/technology schools are shown on Map N.

The eight colleges are very important to the region, because one of the economic development strategies is to attract the type of employer seeking college graduates to make up its workforce, including “high-tech” companies. In addition, these institutions contain students and faculty that are current or future leaders, managers, and innovators, crucial to the future economic health of the region. The institutions are also important employers of individuals (faculty) with a high level of education (“knowledge workers”), typically earning relatively good salaries. A brief description of these institutions is presented in the following paragraphs.

Penn State - Altoona Campus. This branch campus of Penn State University is located in the City of Altoona in Blair County. Penn State’s main campus is in State College, in Centre County, just outside the north side of the Southern Alleghenies region. Penn State-Altoona was founded in 1939 as the Altoona Undergraduate Center. Today, Penn-State Altoona offers 11 baccalaureate degree programs in the following areas: business; criminal justice; electro-mechanical engineering technology; English; environmental studies; human development and family studies; integrative arts; letters, arts, and sciences; mathematics; nursing; and science. It also offers 9 associate degree programs. Penn State-Altoona students interested in completing their degree at Penn State - State College may also take the first two years of requirements for 180 different 4-year degree programs that they will complete at State College. Penn State-Altoona’s campus covers 120 acres with more than 20 buildings centered around a pond, including a student union; athletic complex with indoor pool, fitness loft and weight room; computer center; library; state-of-the-art science and engineering labs; theater; art and music studios; and the Ralph and Helen Force Advanced Technology Center. Dr. Cale, Dean and Ceo, indicated that the university started offering a Bachelors in Business with an Entrepreneurial Track, working closely with the Altoona-Blair County Development Corporation; the degree requires an internship at area corporations. Penn State-Altoona is also a significant employer, with over 550 full-time and part-time employees, including 112 full-time and I55 part-time faculty members.

II-117

Juniata Collepe. This liberal arts college is located in the City of Huntingdon in Huntingdon County. The campus occupies around 100 acres, and has approximately 3 1 buildings. The institution is an independent, co-educational, college of liberal arts and sciences with a good reputation for academic excellence. The college was founded in 1876. The current enrollment of the college is approximately 1,200 students, and approximately 75 percent of students have their permanent residence in Pennsylvania. Approximately 5 percent of the student body is international. Huntingdon County officials consider the college to be an important economic development resource to the community. The President of the college has served on the board of Huntingdon County Business and Industry Association for the last two years. Juniata College has been expanding its enrollment over the last couple of years, and is emphasizing their science and technology degree programs. The college operates the 365-acre Raystown Environmental Studies Field Station on Army Corps of Engineers Land by Raystown Lake, and the first phases of a $5 million (total authorization), 5-building expansion is under construction, using Army Corps of Engineers funds. A 2-story dining hall and meeting facility is under construction and will be completed in January 2003. Future phases will include residential housing with up to 48 apartment units for students to spend semesters studying intensively by the lake, classroom laboratories, etc. The college is becoming known for environmental science and conferences planned to be held at the new facility are expected to generate hotel demand which will benefit the tourism sector in the county. An 88,000-square-foot, state-of-the-art science department building is under construction on the main campus and will be known as the von Liebig Center for

',:,, Science; the building is named after the alumni who gave.a major donation to the I university. The new science building is expected to help attract top students interested in .. .' obtaining science degrees as well as top faculty. Finally, the university is involved in the planning for a business incubator in Huntingdon.

St. Francis Universitv. This Catholic university is located on a 600-acre campus in Loretto (Cambria County), north of U.S. 22, between Altoona and Ebensburg. The university offers 25 undergraduate and 7 graduate majors to approximately 2000 students. The school has a liberal arts orientation. Business administration, biology, and environmental science are among the degrees. Undergraduate, graduate, and continuing education programs of study are offered both in daytime and evening hours. Class locations in the region include not only Loretto, but also Altoona and Johnstown.

Mount Alovsius College. This small Catholic college is located in Cresson (Cambria County), just south of U.S. Route 22, between Altoona and Ebensburg. The college offers both bachelors degrees and associate degrees in 26 undergraduate majors. Computer science, criminology, occupational therapy, information technology, and radiography/medical imaging are among the degree programs.

11-1 19 The Universitv of Pittsburgh at Johnstown. Founded in 1927 as one of the first regional campuses of a major university, Pitt-Johnstown offers more than 40 majors and programs of study for 4-year undergraduate degrees. Full-time enrollment is approximately 2,700. Located in a suburb of Johnstown in Cambria County, the university has a spacious 650-acre wooded campus. Among the degree programs offered are computer science, engineering technology, biology, management/marketing, geology, pre-law, and environmental studies.

Alleganv College - Bedford Campus and Somerset Campus. These college campuses are branch campuses; the main campus is in Cumberland, Maryland. The colleges offer technical training oriented to the job needs of many sectors of the regional economy, offering certificates in careers such as automotive technician, media technician, computer specialist, chef, hotdmotel manager, travelltourism specialist, business manager, and computer specialist, among others. The Bedford County Technical Campus is expanding education opportunities for Bedford County residents, fiom secondary students to regularly enrolled college students. neTechnical Campus is a collaboration between the college and the Bedford County Technical Center.

Cambria County Area Community College. This comprehensive community college, started in 1994, has 5 different sites in Cambria County where classes are held, including a site in downtown Johnstown. The college offers the basic college-level basic requirement courses needed by students and transferable to 4-year colleges. In addition, it provides occupational and technical programs, and workforce development training. For flexibility, the college offers distance education and on-line courses. Newer courses include videoconferencing and computer technology.

11- 120 SECTION I11 THE SOUTHERN ALLEGHENIES REGION CEDS VISION STATEMENT

The vision statement and related goals for the Southern Alleghenies Region reflect an appreciation of the region’s historic roots, and a respect for its natural resources, while at the same time embracing new opportunities. The Southern Alleghenies Region CEDS 2002 is a regional economic development plan incorporating a variety of initiatives to benefit a variety of industries and economic sectors. The Southern Alleghenies region, with the support of the Economic Development Administration, will have the ability to sustain itself in the changing economic landscape by providing employment opportunities for unemployed and underemployed residents.

In general, the quality of life of residents of the Southern Alleghenies Region will not be improved until the region’s economy stabilizes and is able to expand. The region has beautifid mountain ranges and scenery, several very attractive recreational facilities, close proximity to large metropolitan areas, a relatively low cost environment to live, and a low crime rate. However, job losses and low wage jobs often overshadow these issues. The vision for the Southern Alleghenies Region must balance the region’s qualities with the ability to expand employment and attract higher wage employers. In the short term, this will require improvement to the image of the region. In the long-term, this will require economic development specialists to have a greater shift in focus and strategy >) . -- from creating industrial jobs to creating jobs in other sectors.

Under current conditions, national trends positively or negatively affect the regional economy. Local officials have limited control and often are not aware of downsizing by companies until the decision has been made. Local officials need to get more control and that can only be done when the economy has a stronger local economic base.

The CEDS Committee, the Southern Alleghenies Planning & Development Commission, and the consultant S. Patz & Associates, Inc. have worked together to establish a vision statement and goals that reflect the aspirations of the region. The vision statement and goals cover the next 20 years (2002 to 2022). This vision statement is as follows:

The vision for the future of the Southern Alleghenies region is that of a region with the following characteristics:

’ 0 Region with a growing population in all six counties 0 Region with an increasingly diversified economy 0 Region increasingly served by public water and sewer ..., 0 Region with increasing economic stability and a moderate unemployment rate Ii staying at or below the national rate , . ..

111- 1 e Region with an increasing number of employers offering jobs attractive to college graduates e Region with a diminishing number of vacant, underutilized industrial buildings remaining fiom the era of heavy industry e Region with revitalized downtown areas in its larger towns and cities e Region where cultural heritage resources are protected, enhanced, and promoted e Region where natural resources are protected, enhanced, and promoted e Region with a healthy living environment e Region with improving planning, marketing, and economic linkages between the six counties comprising the region e Region with a well-developed image from a business marketing perspective e Region constantly improving as a tourism destination a Region with improving transportation linkages with other regions of the Commonwealth of Pennsylvania as well as other states. e Region with improving telecommunications linkages with other regions, states, and countries.

There are 12 overall goals for the Southern Alleghenies region that support the vision statement and will contribute to a sustainable economy for this region. The goals are:

Goal 1: Halt population decline in the Southern Alleghenies region and stimulate population growth, especially in Cambia and Blair County, in order to sustain the regional economy. Take specific steps to stimulate well-planned, well- located, new residential development and redevelopment, being sure at the same time that this new development does not negatively impact the agricultural or tourism sectors.

Goal 2: Work to diversify the economy of the Southern Alleghenies region, by placing a higher proportion of total economic development resources towards economic sectors and sub-sectors other than “old-economy” manufacturing. These could include agriculture, health services, hardwoods, tourism, high-tech services, high-tech manufacbg, higher education services, etc.

Goal 3: Work to lower the unemployment rate in the Southern Alleghenies region through an approach that includes: retraining laid-off workers; supporting the retention, modernization, and expansion of manufacturing companies; diversifying the region’s economy away from its dependence on large manufacturing employers that tend to have major layoffs during down periods, and linking laid-off workers with jobs outside the region.

Goal 4: Work to prevent “brain drain” by attracting employers requiring knowledge workers, in order to provide jobs for students graduating fiom colleges and universities in the region or nearby and also help create higher-paying jobs for ‘II the region.

111-2 Goal 5: Strengthen the non-transportation inhstructure of the counties in the Southern Alleghenies region including provision of water, sewer, and telecommunications to support economic deveIopment

Goal 6 Protect and enhance the natural and cultural resources of the Southem Alleghenies region and support economic development initiatives relating those resources including recreation, agricultural and heritage tourism, forestry, farming, and fisheries.

Goal 7: Strengthen transportation linkages between the overall region and source markets for raw materials, tourists, and other inputs to the regional economy.

Goal 8: Support the redevelopment and revitalization of the urban centers of Altoona, Johnstown, Huntingdon, Somerset, and other towns and cities in the region to encourage firms in all sectors to locate appropriate operations there.

Goal 9: Support the clean-up, rehabilitation and redevelopment of brownfield properties throughout the region to improve the business image of the region as well as environment.

Goal 10: Strengthen the planning, marketing, and economic linkages between the six counties comprising the region.

Goal 11: Improve and enhance the image and identity of the region as a business location as well as a tourism destination.

' '..

. _.

I113 SECTION IV: IMPLEMENTATION STRATEGY

Introduction

The implementation of the proposed CEDS presents specific projects, both short- term and medium-term, comprising an Action Plan. The Action Plan contains objectives related to the goals stated in Section 111 and defines programs, activities, and implementation strategies to overcome weaknesses and challenges identified in the Analysis Section (Section 11). Among the weaknesses or challenges facing the region are the following:

0 The Southern Alleghenies Region has the image of a low cost area, most attractive to companies that want a “cheap” place to work 0 Population decline 0 Low household income levels e Relatively small number of jobs attractive to college graduates a Weak regional linkages and occasional lack of regional unity for marketing and Planning 0biectives

The CEDS Committee, the Southern Alleghenies Planning and Development Commission, and a consultant S. Patz & Associates, Inc. have developed objectives related to the goals and vision statement for the region. The goal’s objectives are identified as short-term (accomplishment within the period July 2002 to June 2005) and moderate term (accomplishment within the period July 2005 to June 2008).

GOAL # 1: Halt population decline in the Southern Alleghenies region and stimulate population growth, especially in Cambria and Blair County, in order to sustain the regional economy. Take specific steps to stimulate well-planned, well-located, new residential development and redevelopment, being sure at the same time that this new development does not negatively impact the agricultural or tourism sectors.

Objective #1:1 - Identify best sites for feasible and sustainable new residential development and redevelopment and identify issues constraining new residential development including job creation, lack of utilities, zoning issues, agricultural land needing protection, etc.

Term: Short Priority: High

The overall population decline in the region hurts its chance to attract new retail businesses and businesses seeking a labor force. Cambria County especially needs to .) 1 concentrate on how to stop its population decline. While job losses over the past two

IV-1 decades is the primary reason for the decline, the region can be proactive in determining ways to attract persons seeking to commute to jobs outside the region. Looking towards the future, if the economic development strategy leads to significant job creation, then it is important for the counties of the region to have decent housing in close proximity to those new jobs.

The housing market in the region is being greatly affected by population declines and the low average householdfamily incomes of the region. A high percentage of the new housing built in the region during the 1990’s was at area resorts. These new homes served seasonal residents/tourists and not local residents.

The region’s economy is unsettled due to national and global trends causing plant closings and company down-sizings. The lack of quality jobs in the region and the inability to increase the number of jobs has resulted in population losses and ‘%rain drain”, where young families have left the area, because young adults seeking professional jobs have a limited local selection.

An example of a residential redevelopment effort in the region is a Keystone Opportunity Zone residential project in the far north part of the City of Altoona. The two well-located prime areas owned by the Altoona Redevelopment Authority are zoned Medium Density Residential. The goal of the City of Altoona is to shore up the tax base of the city and solidify middle income households. Development will mostly be single family housing on smaller lots and residents will get KO2 tax breaks for buying homes thm. The city recently undertook studies to make sure that the infrastructure will be paid for by the residential development.

The City of Johnstown is aware of its old housing stock and the need for housing rehabilitation and has been addressing these issues under Supplemental Community Development Block Grant projects. The city planned to rehabilitate 40 units during the 2001 to 2003 period, through working with non-profit agencies, and use a Housing Construction Program to build 10 new homes for low to moderate income households. The Johnstown Partnership, consisting of the City of Johnstown, Johnstown Redevelopment Authority, Greater Johnstown Chamber of Commerce, Johnstown Regional Partnership, and Johnstown Area Regional Industries (JARI), recently requested a total of over $1 million from the state for various projects. The need is great to improve housing in the region.

The City of Johnstown also wants to demolish blighted buildings in the 600 block of Kemville, which has 90% blighted structures, and residents with a poverty rate of 49% and unemployment rate of 21%. The goal is systematically prepare an acquisition plan geared to a Sheriff’s Sale, Tax, Sale, and Judicial Sale properties as well as request donations. The multi-year program has sought $75,000 hm Communities of Opportunity and a $75,000 Community Development Block Grant for that purpose.

In Huntingdon County, the goal of county officials is also to support new avenues for affordable housing, continue housing rehabilitation programs and develop a first time

IV-2 home-buyers program. In addition, that county is interested in high quality residential development and supports local ordinances that prevent low quality development.

Economic Development Project 1:la

. Project Namemitle: Strategic Planning Study for Residential Development in the Southern Alleghenies Region Type of Project: Regional Residential Planning Study Estimated Cost: $25,000

The Southern Alleghenies Planning and Development Commission will coordinate an internal planning effort with the planning directors for each of the six counties to determine urban, suburban, and rural residential potential areas that might be constrained by lack of utilities or other factors and identify a strategy to attract new residential development. In addition, the focus will be on the type of residential development wanted, including new urban housing developments, upscale housing near resort areas, special planned communities with unique aspects (e.g. on trail systems), communities located near large new industrial parks or other areas expected to be major employment centers. It may be necessary to subsidize residential development by using public resources to help with infrastructure costs, etc.

GOAL # 2: Work to diversify the economy of the Southern Alleghenies region, by placing a higher proportion of total local, state, and federal economic development resources towards economic sectors and sub-sectors other than manufacturing. These other sectors could include agriculture, health services, tourism, high-tech services, higher education services, etc.

Obiective #2:1 - Determine where local, state, and federal economic development resources were spent in the Southern Alleghenies region in 1999, 2000, and 2001, by sector, with regional infrastructure being considered separately.

Term: Short Priority: High

Understanding the hard numbers on where economic development resources are currently being spent will help in the long-term strategy to diversify the economy. Quantifjling tax breaks, such as a IO-year tax waiver for a company that locates in a KO2 industrial site, as a resource spent, should be considered.

Economic Development Project 2: la

Project Name/Title: Study of Economic Development Resource Allocation in the Southern Alleghenies Region Type of Proj ect: Financial Study Estimated Cost: $25,000

IV-3 The Southern Alleghenies Planning and Development Commission will work with the economic development departments and various agencies and prepare a study showing approximate allocations of resources among sectors or for regional infrastructure. This will then set the groundwork for a strategy to reallocate resources to sectors believed to show more growth potential.

GOAL #3: Work to lower the unemployment rate in the Southern Alleghenies region through an approach that includes: retraining laid-off workers; supporting the retention, modernization, and expansion of manufacturing companies; diversifying the region's economy away fiom its dependence on large manufacturing employers that tend to have major layoffs during down periods, and linking laid-off workers with jobs outside the region.

Obiective # 3:l - Address labor force skills to help laid-off workers find work in other sectors and be better able to grow at their jobs.

Term: Short Priority: High

The Southern Alleghenies Planning and Development Commission (SAF'&DC) will continue to address the issue of labor force skills in order to help laid-off workers .. . .I find work in other sectors and be better able to grow at their jobs. The 3-Year Strategic , .: ,; Plan of the Southern Alleghenies Workforce Investment Board is the most important workforce development plan in the Southern Alleghenies Region.

Analyzing regional workforce issues has been a major focus of the Southern Alleghenies Planning and Development Commission (SAP&DC). SAP&DC conducted a study of these issues and summarized its findings in a report entitled: WorWbrce Issues in the Southern Allrzehenies Region, released in July 1999. The survey used a convenience sample of employers in the region. Several of the key findings of this report are summarized below:

The Southern Alleghenies region is home to 10,635 businesses or 4% of the businesses located in the Commonwealth. The researchers spoke to 680 businessses, or 6.3% of the total. The majority of the businesses interviewed were manufacturers (308), followed by wholesalehetail trade businesses (107), with the remaining 265 businesses being in eight other sectors. Of the companies surveyed, 36% were small businesses with less than 10 employees, approximately 18 percent had 11 to 25 employees, approximately 13 percent had 26 to 50 employees, approximately 6 percent had 76 to 124 employees, and 19% were larger companies with more than 125 employees. Of the companies interviewed, 43% indicated that entry-level positions did not require a high school education and about 45% indicated that they only required a

IV-4 high school education. These responses are primarily because the majority of survey respondents were manufacturers. Businesses were asked what specialized skills they required new employees to possess prior to employment. The specialized skill required most often was reported to be mechanical ability followed by computer skills, commercial drivers license and communicatiodpeople skills. The CEOs were asked what percentage of their employees required skilled training. Fifty-four percent of the businesses stated that more than 80% of their employees require skill training. The businesses were asked if they were having problems finding qualified workers. Approximately half of the businesses interviewed indicated that they were having problems finding qualified workers. The CEOs were then asked what skills they were having difficulty finding. The five skills in greatest demand include Sales Representatives (12%), IndividuaIs with Commercial Driving Licenses (1 2%), Machine Operatorshfachinists (8%) Production Workers (8%), and Welders (8%). When asked what new positions that the businesses planned to create in the next three years, the four highest responses were: production workers/assemblers (1,350 responses), truck drivers (825 responses), maintenancehousekeeping (550 responses), and laborers (500 responses).

The survey indicates that the manufacturing sector and wholesale/retail trade sectors, the two biggest respondents, have based operations in the region because of relatively inexpensive labor force and a tradition of manufacturing (for manufacturing sector). Education is not a priority. Unfortunately, many of these same type of companies, especially manufacturers, are shrinking their work-forces or leaving the region for less expensive labor in foreign countries. However, it is important €or these companies to be able to prosper and grow in the region and their needs are important, even while a longer-term effort is made to diversify the economy and have higher-paying jobs requiring higher educational levels.

The Southern Alleghenies Planning and Development Commission supports and promotes workforce development efforts in its member counties. The state program Pennsylvania Career Link also has ofices in each county in the region. The purpose of the program is to help assist laid off workers. Services, all of which are provided free of charge, include but are not limited to vocational counseling, resume and cover letter preparation, interviewing techniques, and job search.

SAWIB assists individuals through its “Individual Training Account” (ITA) program. The focus of SAWIB is to help residents of the region find good jobs. Sometimes this means paying for the retraining of unemployed or underemployed workers by using the ITA program. Since July 1, 2001, some 125 individuals have received stipends totaling $209,230 and have been able to pursue classes offered by approved training providers, in demand occupation fields ranging from healthcare to computer technology. The ITA program is available through the PA Career Link system.

IV-5 The US. Department of Labor awarded a grant to SAP&DC to develop and coordinate 12 consortia in the region for the purpose of addressing workforce development needs. All six counties participated in the process. As a result of this effort by SAP&DC, the Altoona-Blair County Development Corporation (ABCD) started a strategic initiative in 2000 known as the Workforce Delivery System Network, with 40 businesses participating in the network. ABCD has a workforce development manager. Five training programs have been developed through network leads. ABDC is attempting to establish additional public fbnding sources for development of the workforce network and is working closely with SAP&DC on this effort. Other ABCD efforts in Blair County are to strengthen partnerships with “career counselors” by informing them of available jobs and business needs resulting f?om ongoing economic expansion related activities. This is known as the BASICS program and is operated through the Blair County Chamber of Commerce.

The Bedford County Development Association and the Ofice of Economic Development for Bedford County organized two workforce development consortiums in 2000, one for manufacturing companies and a second for food service companies. The consortia were formed to help members of BCDA identify cowonjob training needs for the region, formulate training plans, and implement programs that will meet those needs. In 1999, five Bedford County companies led the region by accessing more than $185,000 for workforce development through the Workforce and Economic Development Network. The $9 million Pennsylvania Department of Economic and Development (PDED) initiative provided $450 per new worker for companies that hired 12 or more new employees during the prior six months from the application to the workforce program, and who pay a starting wage at least 150 percent above minimum wage.

There is another state-funded program called Workforce and Economic Development Network of Pennsylvania (WEDnetPA) where qualified companies can have employees receive f?eejob training. Through the guaranteed free training program, companies can access funding for a wide range of basic skills training and information technology training for their employees. Christopher Mahla, Associate Dean, Workforce Development, at Cambria County Area Community College, coordinates efforts in the Southern Alleghenies Region.

Economic Development Proiect #3: la

Project Namemitle: Additional Funding for Regional Workforce Delivery System Network Type of Project: Administration and Planning of Regional Workforce Delivery System Network Estimated Cost: $200,000

SAP&DC will continue to develop and improve the Regional Workforce Delivery System Network and will seek additional funding for this purpose.

IV-6 Obiective #3:2 - Support the retention, modernization, and expansion of manufacturing companies and other businesses in the region.

Term: Short and Mid-Term Priority: High

This objective, for the most part, is already an important focus of persons and groups involved with economic development in the region. As was discussed in the Analysis Section, some of the problems facing the manufacturing sector are a result of mergers, global competition, companies shifting jobs to foreign locations due to low labor costs, old and obsolete facilities, etc. No economic development strategy could have saved most of the jobs lost over the last 24 months.

There are a variety of programs used by the Southern Alleghenies Network to support this objective, and there is always a need for more funding to support the pool of money available for financing, etc. A discussion of how these programs have been used by some of the counties was included in the Analysis Section. A list of the programs in the Southern Alleghenies Network is shown in the following chart.

CATEGORY SERVICE AGENCY

Business Develoment Business Plan Development SBDC

Environment Issues Assessments Penn Tap Permit Assistance Penn Tap Regulatory Compliance Penn Tap SBDC

IV-7 Business Counseling SCORE

IV-8 Economic Develo~mentProiect #3:2a

Project Name/Title: Creation of Industry Sub-sector Specialist Groups for Superior Business Outreach and Retention Efforts Type of Project: Organizational Planning and Research Estimated Cost: $20,000

In response to recent problems with employers in the manufacturing sector, including layoffs, plant closings, etc., it is necessary for economic development officials in the region to be proactive in terms of developing better relationships with industries and better information about them. What often happens is that one economic development official will develop a special relationship with a company but will then leave for a new job and take the knowledge with them. Some executives believe that knowledge has replaced capital and labor as the primary basis of competitive advantage and a region with a high level of knowledge about its industries would be able to do a better job at retaining industry as well as attracting industry, assisting with site location analysis, and understanding linkages.

Regional groups consisting of planners, economic development officials, university faculty, and other volunteers from all the counties in the region would develop knowledge specializations in specific industries comprising the region, whether the :’ ‘,, industry be paper, steel, business software, telecommunications, defense contracting, hospitals and health care, insurance, etc. Each group would work on preparing internal analyses of the economic health of specific industry sub-sectors and obtaining the maximum amount of idormation on that industry. In effect, each group would become like a market analyst for that sub-sector in the region. Focus areas of each group would be the size of companies, locations in the region, private or public, getting to know executives, determine whether facilities are obsolete or modern, level of need for modernization or new technology, and amount of tax contribution to the region. The group would also focus on the competitive environment of the industry nationally and internationally through analysis of published data, and where the companies locally fit in the national picture. University students may be able to assist with data collection effort as interns. The goal would be to have a true understanding of these businesses and put the region in a better position to help retain them, help them expand or modernize them, advise them, and use available programs to assist them. Each group would be responsible for preparing a semi-annual report on the “state of the industry” that would be a confidential internal document.

The funding would be needed to cover the cost of transportation reimbursements, meetings, taking executives to lunch, data collection, and other costs associated with creating the “state of the industry” reports.

IV-9 .. I. .,’, GOAL #4: Work to prevent “brain drain” by attracting employers requiring knowledge workers, in order to provide jobs for students graduating from colleges and universities in the region or nearby and also help create higher-paying jobs for the region.

Many persons fiom the region who attend college and universities outside the region do not return due to lack of job opportunities. Graduates of colleges and universities in the region also leave. Thus, there is a decline in persons in this stage of life and the long-term economic loss to the region based on having fewer knowledge workers with the potential to earn relatively high incomes and fewer new families established to keep the population from declining.

It is very important for the region to start creating more higher-paying jobs. The average household income in the Southern Alleghenies region is low, with well over half of the region’s families having incomes at or below the national average in the low- $40,000’~.This in turn affects the region’s retail base, as few quality specialty retail stores can survive with moderate-income families, and the ability to attract new retail stores without negatively affecting existing stores is difficult. This condition also affects the region’s ability to support quality entertainment and the types of entertainment retail that is being built in urban areas nationwide.

There is a direct correlation between higher educational levels and higher paying jobs. That is why the region will work hard to prevent “brain drain” by attracting employers requiring knowledge workers.

The Southern Alleghenies Planning and Development Commission has been studying ways to keep and attract young people to the counties comprising the region. A Regional Strategic Plan was deveIoped on this issue by SAP&DC’s “Stay Invent the Future Regional Steering Committee” and was submitted December 2001. Brain gain program initiatives suggested by the study were labeled: attention, tech-direct , reverse migration, and new talent, and were related to the following “action areas” matchmaking, outreach, environment, and education. This important study is giving the region an approach towards tackling this important problem.

Objective # 4:l - Support the effort to bring more high-tech and medical research jobs to the region as this will help retain the knowledge workers.

Term: Mid-Term Priority: Average

This objective, for the most part, is already part of the long-term economic strategy of SAP&DC and different groups involved with economic development in the region. A strong effort will be made to continue to prevent the “brain drain”.

The region needs more defense industry jobs, advanced medical research jobs and other generic “high-tech” jobs in any industry that would appeal to knowledge workers, I because this will keep college graduates in the region, allow for laid-off workers to be

IV-10 retrained for high-tech industrial applications, and gradually help the region’s image evolve away from domination by “old economy” industry. There is a need to’support the creation of incubators for high-tech and r&d start-up companies in conjunction with universities and to capitalize on the presence of numerous colleges and universities in the region.

Economic DeveloDment Project ##4:la

Project Name/Title: JAM High Tech Center in Johnstown Type of Project: General Development and Operations Grant Estimated Cost: $100,000

The Johnstown Area Regional Industries commenced with development of a High-Tech Center in the partially vacant Reliant Energy Building in Johnstown in 2001, and will use 10,000 square feet to create a business incubator to develop smaller technological industries. The strategy focuses on development of a work force to support high technology employers in all tech-related fields. When llly leased, the incubator is expected to create 50 new jobs in its first year. This operation needs fimding for assistance in marketing, space costs, new high-tech loan fund for companies planning to locate in incubator, etc. Local fhds of $250,000 have already been committed.

Economic Development Project M:lb

Project Namenitle: Raystown Environmental Field Station Type of Project: Development Grant Estimated Cost: $1 million +

Juniata College operates the 365-acre Ray stown Environmental Studies Field Station on Army Corps of Engineers Land by Raystown Lake, and the first phases of a $5 million (total authorization), 5-building expansion, is under construction, using Army Corps of Engineers funds. A 2-story dining hall and meeting facility is under construction and will be completed in January 2003. Future phases will include residential housing with up to 48 apartment units for students to spend semesters studying intensively by the lake, classroom laboratories, etc. The college is becoming known for environmental science and conferences planned to be held at the new facility are expected to generate hotel demand which will benefit the tourism sector in the county. Additional funding to help the first phase of this project get completed sooner or to expand the project with additional research facilities would help provide jobs for students graduating in the field of environmental science and more quickly establish the region as ’ a leader in this area.

IV-11 Economic Development Project #4: IC

Project Namemitle: Master Plan and Long-Range Economic Development Plan for Windber Medical Center Area Type of Project: Planning Study Estimated Cost: $100,000

The new genetics research laboratory and tissue bank recently constructed on the grounds of the Windber Medical Center is one of the most exciting developments in the region. The world-class Research Institute opened in Somerset County in 2001, with the god of finding cures for metabolic diseases. Five high tech companies have plans to open new offices in Windber to collaborate with the institute and potentially create 140 new high-paying jobs over the next few years. Together with the nearby Windber Medical Center, Windber could “take off into a very significant employment center. An economic development plan to build on this success and market this should be undertaken.

The future development of this area should be very carefully planned so that it can grow in the best and most attractive and productive manner. Developing a master plan for the Windber area and identifying land that can be developed with uses supporting the research there, working on identieing any issues related to zoning or infrastructure, is a necessary first step.

Economic Development Proiect ##4:Id

Project Namemitle: Altoona High-Tech Smart Park Development Assistance Type of Project: Highway Improvement Funds and Other Infrastructure Grants Estimated Cost: $25,000,000

Private developers are planning to create the first high-tech ‘,‘smart park” in Blair County. They purchased 320 acres in Altoona near the interchange of 1-99 and 17* Street. They plan to make it an attractive college campus atmosphere, with some government tenants and high tech tenants. The park would be oriented to technology companies and could also house an office of the Pennsylvania Department of Transportation. Having this project go ahead and be successful is an important component of the regional strategy because Altoona and Blair County need a good ofice and research park. There is a highway improvement project included in the Altoona MPO’s most recent TIP that relates to this proposed (‘smart park.”

GOAL#5: Strengthen the non-transportation infrsstructure of the counties in the Southern Alleghenies region including provision of water, sewer, and telecommunications to support economic development

IV-12 There are large areas of the region where economic development is restrained due to lack of public water, sewer, natural gas, or telecommunications. In addition, infrastructure problems contribute to slower residential development, which is related to Goal #l. All the counties in the region would benefit from additional infrastructure.

Obiective # 5:1 - Build knowledge base for clear understanding of telecommunications strengths and weaknesses of the region as relates to existing industrial parks or other employment centers including downtown areas.

Term: Short Priority: Moderate

Most employers would like to have high-speed Internet access in their marketing offices or administrative offices. In order for the region to remain competitive with other regions, it will be important to have a very good understanding of where there is no service and the earliest time period that it could possibly be brought there, Modem telecommunications technology is changing daily, and for a region with lots of rural areas, wireless systems might be more usehl than cable. The high-tech study done for Johnstown addressed some telecommunications issues facing that area.

Economic DevefoDment Proiect #5:la

:,! .'/ ..... Project Namenitle: Southern Alleghenies Region TelecommunicationsStudy Type of Project: Telecommunications Study Estimated Study Cost: $100,000

The Southern Alleghenies Planning and Development Commission cannot adequately address a regional economic development strategy related to telecommunications infkastructure until it has a better understanding of what is a highly technical subject where information is not readily available. The telecommunications status of each county in the region needs to be studied with a special focus on downtown areas, industrial parks, and KO2 sites, to determine a baseline of where high-speed Internet access is available. The providers of these systems must be identified. Once the baseline has been established, then it will be possible to determine how public resources can be directed to those parts of the region where businesses needing such services are most likely to be attracted.

Obiective # 52 - Create a regional system for prioritizing public water and sewer infrastructure needing state or federal funding based on likely job growth or residential growth that will occur from that funding.

Term: Short-Term and Mid-Term (on-going) Priority: High

IV-13 ...... _.

!

The Pennsylvania Department of Transportation's Transportation Improvement Program (TIP) planning process works well for planning transportation projects in the region. A regional approach needs to be undertaken regarding public water andor sewer service because the provision of this service is highly fragmented. Some of the counties in the region have identified this problem. In Somerset County's strategic planning initiative in 2000, it set as a priority to have a county-wide water and sewer authority in place within 4 to 5 years.

Economic DeveloDment Proiect #5:2a

Project Name/Title: Public Water and Sewer Improvement Program Planning Study for Southern Alleghenies Region Type of Project: Planning Study Estimated Cost: $100,000 per year for 5 year minimum

The SAP&DC needs to have a planner or economic development specialist whose job is to list the top 10 public water or sewer projects each year in each county in the region, fully evaluate the projects, and t@ determine a financing strategy for the top 3 ~~-~ach--~e~--using.-all--av~la~~~~g~~~~-~~~,~~fedeqlfunding -sources. The model would be similar to PennDOTs TIP program for highway and other transportation projects except that this would be a regional program rather than a state program. The city and county planners would submit their projects for review, and then the regional person would use regional funding to evaluate them. In addition, the same individual would begin to evaluate how to create a regional water and sewer authority.

GOAL##& Protect and enhance the natural and cultural resources of the Southern Alleghenies region and support economic development initiatives relating those resources including recreation, agricultural, and heritage tourism, forestry, farming, and fisheries.

Objective 6: 1 - Protect farmland in the region.

Term: Short and Mid-Term Priority: High

SAP&DC will continue to coordinate with the Penn State Cooperative Extension Agricultural Agents in each county in the region to help with planning efforts to identify where erosion and sedimentation present the most threat for agriculture in the ,..... region. No economic development projects are needed as part .of this CEDS. Funding of ...... ,I , ...... farm preservation programs will be monitored to be sure they are not depleted. No .. economic development projects are required. ..

.:, .I.;.' ...... 8 ,.il .. .. i. .. '...... I' ., '.. 1.... '

IV- 14 'i 'i Obiective #6:2 - Develop, strengthen, and expand local and regional markets for agricultural products grown in the region.

Term: Short and Mid-Term Priority: Moderate

In Huntingdon County, the planning department included in its action plan the objective of supporting the direct sale of farm products to county institutions. This concept should be expanded to the regional level. The State prisons in the region should also buy directly from farmers. The U.S.D.A. Fund for Rural America could potentially help fund these efforts.

Economic DeveloDment Proiect ##6:2a . ,.

./ .. Project Name/Title: Regional Agricultural Web-Site Feasibility Study ,\.'.., . , ?' ..; Type of Project: Technical Study ,. .. Estimated Cost: ... i .% ...... $25,000 .... ., /. ..: :. '.,,..... <'. T. .. , ,:>. 1 . SAP&DC will investigate the feasibility of creating a Southern Alleghenies ".. . ..j.

regional web-site advertising the products of all the farmers in the region, and then -i;.', ,;;.' .. opening an agricultural product marketing office where several individuals serve as "" brokers for the producers in the region, finding them new local, regional, national, or international clients for their products. .' . :i, .I Objective # 6:3 - Support tree planting for artificial regeneration of forests and support better forest stewardship and management.

Term: Mid-Term and hng-Term Priority: Moderate

SAP&DC will continue to support efforts to plant new trees throughout the region, recognizing the importance of this natural resource. An effort will be made to help publicize this effort and encourage forest land owners to participate in the Stewardship Forestry Program or Tree Farm Program. Lead entities could be the DCNR Service Forester, Perm State Cooperative Extension, Environmental Advisory Boards, and the American Forestry Foundation. The plan could be promoted through school systems in the region and through the media. No economic development projects are needed as part of this CEDS.

Obiective # 6:4 - Support the hardwoods industry in the region.

Term: Short and Mid-Term Priority: High

.. ., As discussed in the analysis section, the hardwoods industry is one where the ..,...... i region has a significant competitive advantage over many other regions due to its

IV-15 ... .

i: j abundant natural resources. It is important for the region to develop more linkages ,., within this industry, such as between tree harvesting and wood processing.

Economic Develomnent Proiect #6.4a

Project Name/Title: MarkeEconomic Feasibility Study for Sawmill Industry in . the Southern Alleghenies Region- Type of Project: Feasibility Study Estimated Cost: $25,000

SAP&DC will conduct a market feasibility study to determine the economics of the sawmill industry and the potential of attracting one or more additional sawmills to the region. Most of the logs are now shipped out of the county to be processed elsewhere.

Obiective 6.5 - Increase funding availability for financing capital investment in farms and for educational programs for both the public and farmers.

Funding programs for financing capital investment in fanns could use an infusion of more capital, according to Penn State Cooperative Extension officials. SAP&DC will evaluate the amount of money available in the various funds and provide a summary analysis of how much additional funding is needed. No economic development project is needed.

GOAL 7: Strengthen transportation linkages between the overall region and source markets for raw materials, tourists, and other inputs to the regional economy.

The Southern Alleghenies Region is connected to other regions by highways, rail lines, and through the presence of airports. As tourism is an important sector of the economy, the speed and convenience by which tourists fiom outside the region can access their destination in the region, will increase its desirability. In addition, improvements that reduce the travel time between cities in the region increases their connectivity and strength of economic linkages.

Obiective 7.1 - Strengthen highway linkages between the Southern Alleghenies region and other regions.

Economic Development Proiect #7.la

Project Namemitle: Completion of Appalachian Development Highway System in Southern Alleghenies Region Type of Project: Highway Improvement Funds Estimated Cost: $100 million +

Support the timely completion of those portions of the Appalachian Development Highway System within the region. i

IV-16 . ...

Term: Short and Mid-Tern Priority: High

Obtaining funding for design, engineering, or construction of any part of the ADHS in the region not yet completed is high priority because the region would experience direct economic benefit from quicker linkages to 1-80 and 1-68. The last section of 1-99 in Blair County, from a point north of Tyrone to the Blair County-Centre County line, is under construction. When 1-99 is completed to State College in Centre County, the reduced commuting time between the Perm State campus and Altoona is expected to benefit Blair County because persons can start companies in the Altoona area and benefit from research and development conducted in State College and Penn State Altoona may also enjoy an even stronger linkage with the main campus.

However, other sections of the ADHS are not yet funded and are considered much lower priority by ARC and PENNDOT. A timeline will be made for each of the following projects with cost estimates so that persons or groups planning to make investments in the region can have a realistic idea of when they might be completed.

These other projects in the ADHS include:

A 3.5-mile stretch of U.S. Route 22 from the western Cambria County line eastward; The completion of U.S. Route 219 as an upgraded highway south from 1-70 to 1-68 in Maryland. The upgrading of U.S. Route 22 from Hollidaysburg (Blair County) east through Huntingdon County and ending at Lewistown in Mifflin County The upgrading of U.S. Route 220 from Bedford south to 1-68 in Cumberland (not eligible for AHDS funding but part of the system.)

Tourism development in Huntingdon County, which. has Raystown Lake and some of the other important tourism attractions in the region would benefit from having U.S. Route 22 upgraded. In addition, speed of access on Route 22 to Raystown Lake for Johnstown and Altoona area residents enhances their desirability as business locations for persons evaluatingjobs in the area.

Quicker travel time on U.S. Route 219 from Somerset County to 1-68 in Maryland will allow residents of Cambria County and Somerset County to commute more quickly to jobs in Cumberland or Hagerstown, thus lowering the region’s unemployment rate. In addition, western Maryland such as the Deep Creek Lake area has a major focus on tourism, so tourists from other parts of the United States or foreign tourists visiting the entire region will have quicker access to ski areas, golf courses, and other attractions in Somerset County if U.S. Route 219 is upgraded. The Upgrading of U.S. Route 219 that already occurred between Somerset and Ebensburg has greatly improved access in that part of the region and the industrial market in both Cambria County and Somerset County would also benefit from the completion of the upgrade to 1-68 in Maryland.

IV-17 Obiective 7.2 - Support the MAGLEV proposal by the Port Authority of AIlegheny County and MAGLEV, Inc.

Term: Short and Mid-Term Priority: Moderate

Connecting the Southem Alleghenies region with the Pittsburgh area, Harrisburg, or the Washington, D.C. area with a high-speed transportation system would be extremely positive for tourism as well as for residents commuting to higher-paying jobs outside the region but still living in the region. The SAP&DC and aI1 county officials will work to educate residents of the region about the benefits of such a system and take steps to support the Pittsburgh area application. If Pittsburgh is selected, the Southern Alleghenies region may be the next to benefit as the system moves eastward towards the state capital of Harrisburg. No economic development project is needed for this CEDS.

Obiective #7.3 - Support inter-city transportation linkages within the region.

Johnstown and Altoona are the two primary industrial employment centers in the region. Stronger mass transportation linkages between the two cities means labor force can be shared and reduces automobile pollution by commuters. Greater economic linkages between the two cities will be positive for the region. In addition, productivity is enhanced because if a worker’s car breaks down, they have a back-up option.

Economic DeveloDment Project #7.3a

Project Namemitle: AItoona and Johnstown Express Bus Service Study Type of Project: Transportation Study Estimated Cost: $25,000

SAP&DC will study the economic development potential of scheduled express bus service between Altoona and Johnstown with a stop in Ebensburg, designed to coordinate with typical shift hours of manufacturers. Employers can be surveyed as well as a sample of persons that now commute between the two cities.

Obiective 7.4 - Support the growth and development of the two regional airports in the Southern Alleghenies region.

Term: Short and Mid-term Priority: High

The Johnstown-CambriaCounty Airport is the region’s best airport and probably the only profitable one. There are numerous plans for airport upgrades and land acquisition adjacent to the airport for new industrial and business park development. The Johnstown area needs more industrial land and this is the best location for business park development in this part of the region. The airport is important to economic development in Cambria County. Any additional funding for development around the airport would be

IV-18 money well spent as well as funding to help subsidize flights from the Washington, D.C. area (e.g., Washington-Dulles International Airport) for a trial period.

At present, the Altoona-Blair County Airport is not fully used and is not profitable. The airport currently has limited impact on economic development in the region, as State College Airport on the northeast and Johnstown-Cambria County airport on the northwest are within 30 minutes driving time and are larger facilities with more flights. County officials have plans to expand and upgrade the airport. The most recent TIP submitted for Blair County has a fimding request for improvements to the road to the airport, to increase speed and safety of access. This should be supported. In addition, the Altoona-Blair County Development Corporation has plans for public water and sewer improvements at the airport in order that a business parkkorporate hangar complex can be developed. While the airport is unlikely to grow significantly, it plays a very important firnction for some of the major employers in the area in terms of arrivals and departures with corporate jets, and is a selling point for Blriir County when trying to attract new companies to locate in the area.

Expansion of the other airports in the region is unlikely to create any significant positive economic impact and has not been included in this CEDS.

Economic Development Proiect #7.4a

Project Name/Title: AItoona-Blair County Airport Improvements Type of Project: Infrastructure Grants Estimated Cost: $1,000,000 to $10,000,000

The Altoona-Blair County Development Corporation has the short-term goal of obtaining water, sewer, and access improvement at Altoona-Blair County Airport in order to develop a business park and corporate hangar. Development around the airport is likely to increase its economic viability and level of use. In addition, the airport needs scheduled air service from the Washington, D.C. area to benefit the tourism industry, with good tourism linkages at the airport (bus service, taxis, etc.). In Maryland, the state has subsidized air service to Hagerstown and Cumberland to start penetrating the market of fliers. The Huntingdon Airport is virtually closed and the Bedford mort will not expand much beyond its current use level, so it is important for the Altoona-Blair County Airport to be supported as a major part of regional transportation infrastructure.

Altoona Metropolitan Planning Organization has put a request for highway improvements to the road to the airport in the latest TIP. That project and other projects benefiting the airport that have been presented by the Aviation Council of Pennsylvania, are the following:

0 Improvements to highway leading to airport. Estimated cost: TBD 0 Acquire land east of Runway 2-20. Estimated cost: $696,000. 0 Construct ARFF Building. Estimated cost: $750,000.

W-19 ......

0 Construct FBO Hangar. Estimated cost: $750,000.

0 EngineerindDesign & Land Acquisition for Runway 12-30. Estimated cost: $1,500,000. 0 Extend Runway 12-30. Estimated cost: $8,000,000. 0 Install Differential Global Positioning System ILS. Estimated cost: $700,000. Construct 2 T-Hangars. Estimated cost: $550,000. 0 Construct T-Hangar Taxi Lane. Estimated cost: $700,000. . 0 Expand Apron. Estimated cost: $1,000,000.

Economic DeveloDment Project #7.4a

Project Name/Title: Johnstown-Cambria County Airport Improvements Type of Funding: Infrastructure Grant(s) Estimated Cost: $1,000,000 to $10,000,000

Johnstown-Cambria County Airport has been the most successful airport in the region and is probably the only profitable airport in the region. This is discussed in the Analysis section of this CEDS. There are numerous plans for airport upgrades and land acquisition adjacent to the airport for new industrial and business park development. The Johnstown area needs more industrial land and this is the best location for business park development in this part of the region. The airport is important to economic development in Cambria County. Thus, an economic development strategy that “buiIds on success” must include additional investment in the Johnstown-Cambia County Airport and surrounding areas. Some of the projects that have been listed by the Aviation Council of Pennsylvania are the following:

0 Widen and rehabilitate T/W A. Estimated cost: $650,000. 0 Construct De-icing Apron and Rehab Terminal Apron. Estimated cost: $600,000. Acquire Land for GA Development. Estimated cost: $800,000. Remote GA Area Site Preparation. Estimated cost: $600,000. Acquire land for development. Estimated cost: $1,200,000. Aviation-Related Industrial Development. Estimated cost: $4,000,000. Rehabilitate Runway 5-23. Estimated cost: $720,000. Apron Tie-down expansion. Estimated cost: $950,000. Rehabilitate Runway 15-33. Estimated cost: $1,490,000. -

GOAL # 8: Support the redevelopment and revitalization of the cities of Altoona, Johnstown, Huntingdon, Somerset, and other towns and 6ities in the region to encourage firms in all sectors to locate appropriate operations there and to reinstitute a middle class residential community.

Johnstown and Altoona have a number of downtown areas or residential neighborhoods needing upgrades and Johnstown has some huge former steel mill

IV-20 .. .

, structures that must some day be demolished. Johnstown has.been very active in trying to improve its downtown areas, while Altoona has been less successful because so much recent development has occurred outside the city.

Obiective #8:1 - Support the ongoing efforts of the Johnstown Partnership to redevelop sections of downtown Johnstown.

The Central Business District of Johnstown has experienced some recent successes as part of its economic development strategy and continued efforts in the future should be encouraged and supported.

A new $3.8 million Social Security Building was constructed in 1999 and 75 jobs were retained. The vacant Glosser Department Store was renovated for Cambria County office space at a total cost of $5 million. A new $3.5 million State Welfare Ofice Building was also constructed and a new Rite Aid Pharmacy was constructed. However, may storefronts remain vacant, with several businesses closing in 2001 including McCrory’s Department Store in September. Approximately $450,000 in TEA-2 1 transportation funds are being used for streetscape enhancements as well in the city’s Upper Main Street Corridor.

Johnstown started focusing on tourism as a component of downtown revitalization in the late 1980s, when plans were made for the Johnstown Flood Centennial. A program was launched that resulted in the Johnstown Flood Museum. The county has an attraction base and also has a strong special event program. The tourism product has been gradually developed since the late 1980s. Approximately $4.3 million was spent to rehabilitate the museum and construct a new visitors center. The Visitors Center and Restaurant on top of the Incline opened in 1989 or 1990 and are one of the top tourist attractions in Johnstown. The Johnstown Heritage Discovery Center is the newest attraction in Johnstown. This center tells the immigrant story about how they worked in the steel and coal industries, their social clubs, etc.

A new conference center is under construction in downtown Johnstown and is scheduled to open in 2003 at a site adjacent to the War Memorial. The facility will be able to handle a large, sit-down banquet for 1,000 persons, as well as mid-size conferences needing meeting and break-out space. The Holiday Inn-Johnstown is the closest hotel, located within close walking distance. Development of the new conference center will be hnded using approximately $17 million from the Governor’s pool of economic development funds and about $8-9 million fkom the same pool will be used to renovate the War Memorial Arena. The arena is used for ice hockey, ice shows, and concerts.

The Cambria County Convention and Visitors Bureau (CVB) has developed a strong special events program for Cambria County, with much of the activity taking place in Johnstown. In 1989, on Labor Day Weekend, the CVB sponsored a Heritage Festival. As a result of that success, Johnstown was chosen as the location for the National Folk Festival, sponsored by the National Council for Traditional Arts, for three consecutive

IV-21 . ..

years. The CVB coordinated lodging for the event. The Johnstown Folkfest typically attracts 110,000 visitors. In 2000, the festival was attended by 130,000 visitors because of the excellent weather. The music of the festival is very popular and includes Zydeco, Gospel, Blues, Jazz, Polka. A polka festival is held in Johnstoivn during the 1'' weekend in June and draws visitors from as far as Wisconsin or Michigan, etc. Some of the best polka bands in the country participate and people come in by the busload. At the Masonic Temple, they have evening dances. The tourists attending this event also visit other attractions, and the CVB has received very positive responses about the new Heritage Discovery Center. The city also has an Indoor Football League that attracts 750,000 persons annually from outside the county.

Economic DeveloDment Proiect #8: la

Project Namenitle: Demolition of Former Sani-Dairy Facility Type of Project: Demolition Grant Estimated Cost: $300,000 to $1 million

The Johnstown Partnership has plans to raze the former Sani-Dairy Facility in Johnstown to make a 3.32 acre site available for a proposed new llO,OOO-square-foot, regional headquarters of Red Cross. Sani-Dairy facility is a vacant, blighted, property at gateway to downtown. In 2001, Johnstown Partnership requested $300,000 from the state to purchase the Sani-Dairy property, demolish the building, and perform site work. Across Napoleon Street from the property, a new $6 million medical facility for cancer research is under construction. $750,000 already committed by a Federal Economic Development initiative. The private investment of Red Cross is estimated at $12 million,

The privately owned, 9,600-square-foot, Diebert Building, located on the comer of Johnstown's busiest pedestrian-vehicular intersection, is in disrepair and some government assistance is needed to subsidize private investment to renovate the building. The Johnstown Partnership requested $125,000 from the Pennsylvania Department of Community Development and the public funds would be matched by the private owners. Manpower wants to expand from its office at 407 Main Street to 409 Main Street, but the privately-owned building requires an elevator; the Johnstoh Partnership requested $75,000 from the PDCD. Johnstown would also like to try to restart the Main Street Program with a multi-year budget. Finally, the partnership is working with UPMC Lee Health Center to develop a housing project in downtown, requiring $75,000 of government assistance for site acquisition and infrastructure development.

GOAL # 9: Support the clean-up, rehabilitation and/or redevelopment of brownfield properties throughout the region to improve the business image of the region as well as environment.

Several brownfield sites exist in the City of Johnstown. They detract from the image of the area and need to be redeveloped. Old, unusable factories need to be demolished so that sites can be marketed or used temporarily for recreation or other uses, even if it expensive.

IV-22 Obiective #9:1 - Support the clean-up, rehabilitation and/or redevelopment of brownfield sites in the region.

For a number of years, economic development entities with the City of Johnstown have been actively redeveloping brownfield sites remaining after the steel industry declined. There were 12,000 steel industry jobs in Johnstown's CBD in 1970 and only 2,500 in 1999. Redeveloping brownfield sites is a long, slow, and expensive process, but can be accomplished gradually and is important as that city gradually repositions itself. Altoona has fewer brownfield sites, although some railroad yards and some older industrial buildings may soon require attention.

Economic Development Project #9:la

Project Name/Title: Demolition of Johnstown Planning Mill Building Type of Project: Demolition and Infrastructure Grant(s) Estimated Cost: $1,000,000 to $3,000,000

Johnstown Partnership has a number of strategic brownfield initiatives that should be supported with funding. Homerstown Industrial Park is an inner city brownfield location in Johnstown that has some thriving businesses but also has interspersed some blighted properties that aree underutilized and non-conforming to current zoning laws. The city needs $400,000 to raze the dilapidated Johnstown Planning Mill Building located in the center of the industrid park. The city also wants to raze a portion of the Flood City Brass Building, a vacant industrial building that has been idle for 11 years. An automobile dealership, Team Motors, would like to build 'a new 28,000-square-foot showroom facility on these sites. Johnstown Partnership has indicated that EDA representativeshave inspected the site.

The Johnstown Partnership has also been working to redevelop portions of the Bethlehem Steel mill known as the Cambria Iron Works site on the Conemaugh River. It was built in 1860 and has been vacant since 1992. Four industrial companies have already located in parts of the complex known as the Lower Works Complex, including Bar Technologies, Johnstown Axle Works, Johnstown Welding and Fabrication, and Enrnacon. There is a need to separate sanitary, storm, natural gas systems, so that the overall site can be divided up for multi-tenant use. The Johnstown Partnership had plans to acquire, and may have already acquired, the machine shop, carpenter ship, blacksmith shop, and 12 acres of vacant land and 3 buildings. Funds are needed to continue this redevelopment process and there was a recent request for $150,000 for the infrastructure improvements and another $300,000 for acquisitions.

IV-23 ..

GOAL # 10: Strengthen the planning, marketing, and economic linkages between the six counties comprising the region.

Obiective 10:1 - Strengthen the planning, marketing, and economic linkages between the six counties comprising the region..

Term: Short and Mid-Term Priority: High

One of the key weaknesses faced by the Southern Alleghenies region in terms of economic development is weak regional linkages due to the size of the region, geographical features of the region, and differing economic linkages between counties in the region and areas outside the region. Some of the local city and county government employees are only focused on the success of their community or county as opposed to the region. Unfortunately, with globalization, even a 6-county region faces extreme challenges from other regions, states, and countries. Therefore, just as “corporate cultures” need to change in mergers, “county cultures” must change and the only want do this is through communication, power-sharing, and a vision. . Elected officials in each county must also be convinced of the benefits of regional cooperation, because economic development officials often leave their jobs and the same problems are faced.

Each county in the region has its own economic development office, and some have two or three different public, private, or semi-private economic development organizations. Each county economic development office is marketing land in their county. While there is excellent cooperation among offices, there is a need for better planning so that there is no duplication of product, as many areas within the region are competitive with each other. A regional industrial marketing.plan would be usell and would protect against investment in over building of industrial park land.

Economic DeveloDment Proiect #10:la

Project NamePTitle: Regional Cooperation Marketing Initiative Type of Project: Concept Promotion Estimated Cost: $50,000

SAP&DC will make a dedicated effort to market the regional economic development concept to elected officials, economic development officials, planners, and business leaders through newsletters, conferences, taIk-shows, etc. Several staff members will be assigned specifically to focus on this - identifying where the strongest linkages are, where compromises have to occur, etc. The goal is to get all economic development officials “on-board” because otherwise it will be difficult to move forward with a regional marketing theme, and other regional efforts.

IV-24 GOAL # 11: Improve and enhance the image and identity of the Southern Alleghenies Region as a business location as well as tourism destination.

Obiective #11:1 - Create and promote a regional image of the Southern Alleghenies Region as a great place to live, work, and visit, with a sense of history but offering modem amenities, building on the cultural heritage and natural resources of the region that set it apart from other regions.

Term: Short and Mid-Term Priority: High

Many of the economic development leaders in the region have been working to upgrade the image of the region, in order to help attract new business development as well as tourists. The images portrayed by tourist brochures need to be integrated with the business brochures.

The Altoona-Blair County Development Corporation markets the 1-99 corridor as “green banana” for that part of the region, which is a valid effort at image-building. To many business leaders outside the region, the Southern Alleghenies region still has a relatively unattractive image due to the historical development of much of the region with the steel industry and coal mining. These are important industries, but as they no longer need to represent the image of the region due to their decline. As one of its current strategic initiatives to be accomplished in the 2001-2002 period, ABCD is determined to develop a collaborative regional marketing effort.

SAP&DC and the six counties support growth of the tourism industry as a means of diversifying the regional economy by encouraging the development of new tourism attractions and facilities. Development of more upscale resort properties will be encouraged because such properties would attract visitors fiom a larger market area.

Diversification of the economy with the goal of upgrading the image of the region will hopefully attract more investment in tourist-related facilities, which in turn, has the added advantage of generating development in seasonal and retirement homes, new and upscale restaurants and retail users, and more hotel rooms with ancillary uses such as meeting space, conference space, banquet facilities, etc.

I It is acknowledged that wages in many of the tourist related industries are low and often represent part-time jobs and second income wages for households. The recommendation is not to rely on these types of jobs to upgrade the local economy but to suggest that resort development will bring in new housing construction for seasonal and retirement residences, hotels, better restaurants to serve visitors and most importantly, upgrade and change the area’s image. These spin-offs will hopefully help to diversify the economy and make it more attractive for non-manufacturing businesses.

IV-25 Economic Development Proiect #ll:la

Project NameRitle: Conference on Regional Marketing Theme Creation Type of Project: Conference and Concept Promotion Estimated Cost: $1 00,000

Regional leaders need to be convinced that an umbrella marketing theme with sub-themes can be used for the entire region. It is likely that the “green banana” theme used by ABCD for the 1-99 corridor in Blair County would not be appropriate for the total region. This may require a 3-day conference on only this subject, with speakers, workshops, etc. A marketing firm needs to be hired to help develop this theme for the entire region in order to attract businesses. This is extremely important,just as New York became the “big apple”, branding destinations or regions has become essential. “Green” and “entrepreneurial” are two of the themes that should be explored.

Obiective 12.2 - Market tourism regionally as part of one organization with branch ofices, using common marketing materials.

Term: Short and Mid-Term Priority: Moderate

While the Southern Alleghenies Tourism Confederation is a regional tourism organization for the region, there is a need for a superior structure for a regional tourism marketing organization than that which now exists. There is also a need for a well- thought-out regional tourism marketing plan that can be amended and adapted over time. At present, a large variety of groups, some semi-regional, some county, sometimes with conflicting interests, are marketing specific areas of the region, and the marketing effort is thus very fragmented.

Economic Develomnent Proiect #12.2a

Project Name/Title: Tourism Marketing and Reorganization Study for the Southern Alleghenies Region . Type of Project: Technical Study Estimated Cost: $25,000 to $50,000

A study is needed to determine the best regional tourism organizational structure. Once that structure has been established, a regional tourism marketing plan should be prepared. One possibility is to have a headquarters and then branch offices, with salaries paid by the organization. The different counties comprising the region could be represented by an executive working for the parent organization; the executive could establish an office in that county. The new organization would have more power to lobby for state and federal resources for the region and could create a detailed marketing plan for implementation. The different counties could contribute to the \

IV-26 organization based on a formula. Regional tourism marketing could overlap with regional corporatehdustrial business development marketing.

The Pennsylvania Department of Community Development gave $8.5 million in state matching grants in 2001 for 22 regional marketing plans for various parts of Pennsylvania, the largest ever awarded through the four-year-old Regional Marketing Initiatives matching-grant program. The governor made an accurate statement when he said, “By promoting tourism regionally, we are making the most of every dollar to attract more visitors - and more visitors mean more jobs.” However, the only grant to the Southern Alleghenies region was $100,000 to the Blair County Convention Center to market the Blair County Convention Center and the Central Pennsylvania Region as a meeting and convention destination. Somerset County was included as one of the counties benefiting from a $2 million grant to the Greater Pittsburgh Convention and Visitors Bureau to promote Southwestern Pennsylvania as a tourism destination to help increase the number of overnight visitors. Tourism is one industry that is ideal for regional marketing - that is why islands and other tourist destinations have one organization marketing the entire island, even if there are varying cities or other points of interest on the island.

Obiective 12.3 - Encourage the lodging industry in the region with technical assistance, marketing, infrastructure or development grants.

Term: Short and Mid-Term Priority: Moderate

The research presented in the Analysis section indicated that the market occupancy of hotels in the region is below industry standards. A regional tourism marketing organization can help with strategies to attract new market segments and boost occupancy levels as well as increase room rates.

Economic Development Project #12.3s

Project Narnemitle: Bedford Spring Resort Hotel Development Assistance Type of Project: Development Grant Estimated Cost: $500,000 to $1,000,000

The Bedford County Redevelopment Authority has been working with a private developer, Stormont Hospitality Group, on a public-private effort to redevelop the now vacant Bedford Spring Resort Hotel property into a new resort and conference center hotel. The Authority also took an option on the adjacent Bedford Springs Golf Course. Grant applications have been prepared or submitted to the Appalachian Regional Commission and the U.S. Environmental Protection Agency to install new sewer lines to to the hotel and also along U.S. Route 220. Similar applications have been submitted for water lines. There is also $1 million in Bedford County’s TIP to improve the road between the property and Bedford Borough. The property also received a IO-year

IV-27 approval for Local Economic Revitalization Tax Assistahce and is a Keystone Opportunity Zone, meaning that the developer will not to pay any corporate income tax or real estate taxes for 13 years. This project will not only provide employment, but will help improve the image of this part of the region and federal funding should be considered to help the project become a reality. In late September 2001, an agreement was made giving Stormont Hospitality four months to study the project, which would have been over by February 2002. SAP&DC believes that this project should not be abandoned and a new developer should be found if Stormont does not move forward.

The region already has a number of excellent resorts in the far west part of the region, including Hidden Valley and Seven Springs Mountain Resort. However, the eastern part of the region has only Blue Knob, which is not as well-known a property. Therefore, it would benefit the overall region if the proposed new Bedford Springs Resort Hotel can be developed due to its central location.

Economic Development Proiect #12.3b

Project Name/Title: Seven Springs Mountain Resort Type of Project: Infrastructure Improvements, Signage Improvements, or Development Grant Estimated Cost: $500,000 to $1,000,000

Seven Springs Mountain Resort is planning major private investment to upgrade the resort and add new seasonal housing. This is an important project for the region, as it has regional appeal as a four-seasons resort. The property owners are undertaking the expansion without public funds. The public sector should assist with infrastructure improvements, development grant, or signage on roads to the resort, as an encouragement to this major private investment.

Economic DeveloDment Proiect #12.3c

Project Namflitle: Huntingdon County Hotels Type of Project: Infrastructure Improvements or Development Grant Estimated Cost: $500,000 to $1,000,000

The amount of development associated with the large and very attractive Raystown Lake in Raystown Lake National Recreation Area in Huntingdon County is small and modest in scale. The hotels in Huntingdon that serve the lake are old and not particularly attractive. Local communities are not taking advantage of this resource,

< which should have a much greater economic impact in the region than presently exists. A developer recently developed a new campground to serve the needs of tourists. An example of joint marketing is the linkages between the lake and the proposed new Bedford Springs Resort. The goal is to get more seasonal housing development andor better hotels. The Huntingdon County Business and Industry Association has been activeIy marketing a hotel site at the intersection of U.S. Route 22 and State Route 26 in

IV-28 Smithfeld Township, Huntingdon County, Pennsylvania. This project has not proceeded as fast as expected. Economic development officials have indicated that one developer is very interested in developing a 75-room Comfort Inn & Suites. This hotel project as well as the other hotel project planned in Huntingdon should also be considered for development assistance.

Obiective 12.4 - Encourage the development of the tourism industry in the region by enhancing tourist attractions by giving technical or planning assistance, marketing, infrastructure or development grants.

Term: Short and Mid-Term Priority: Moderate

Economic Development Proiect 12:4a

Project Name/Title: Shanksville National Memorial Site Type of Project: Attraction Planning and Development Estimated Cost: $50,000

Shanksville Memorial Site in Somerset County is the location of the jet crash in September 11,2001, where American passengers fought terrorist hijackers and sacrificed their lives for our country. The site is located near Stony Creek at Routes 30 and 160. This memorial is likely to happen and deserves to be a major attraction due to its prominent place in American history. Regional officials need to be involved in the memorial planning, in terms of preserving the dignity of the site and planning for economic benefits. A consuhnt may need to be hired to help advise the region on the best approach for creating this potential attraction.

Economic DeveloDment Proiect 12:4b

Project Namemitle: Old Bedford Village Master Plan. Type of Project: Master Plan Estimated Cost: $25,000

Old Bedford Village is a small, privately owned, attraction with an outdated theme and currently limited market appeal. A master plan was to be put in place to upgrade and re-image the facility. That did not happen. The site is very well located but the product is “worn”. This site needs a master plan, but that effort must be directed by a local agency, with a strong “track record” of achievement-likely the Bedford County Development Association.

IV-29 Economic DeveloDment Proiect 12:4c

Project Name/Title: East Broad Top Railroad Tourism Destination Development Type of Project: Master Plan, Infrastructure Grants, Public-Private Partnership, Highway Improvement TIP Funds Estimated Cost: $25,000,000+

The East Broad Top Railroad (EBT) National Historic Landmark in Orbisonia, Pennsylvania, in Huntingdon County, is the oldest surviving narrow-guage railroad east of the Rocky Mountains. According to a study of this tourism attraction prepared by the National Park Service for the Southwestern Pennsylvania Heritage Preservation Commission, the EBT is the best remaining example in the nation of a regional narrow- guage railroad system. The landmark’s significant features include the shop complex and railroad yard in Rockhill, which date between 1880 and 1910 and contain the original steam-powered, belt-driven machinery used to repair and build rolling stock and house the locomotives. According the study, the shop cornpledrailroad is the most complete historic railroad yard in North America. Many of the structures have not been used since 1956.

EBT, privately owned, is an exceptional resource that is under-utilized. There has been discussion of developing some of the thousands of acres of undeveloped land in the area near EBT, and making a major tourist attraction. The goal creates a successful private-public partnership. In its most recent Action Plan, Huntingdon County included the goal of encouraging the preservation, reconstruction, and. interpretation of the East Broad Top Railroad to become a major tourist resource. Various documents on this project with detailed business plans and financial projections have already been prepared, including Full Steam Ahead: East Broad TOPRailroad (dated September 1995) and Broad TOD Railroad Legislative Support Data Package (dated June 1993), among numerous other studies by the National Park Service and other groups. The owner is seeking a profitable long-term relationship where his family can be &ply rewarded. One consultant suggested a resort community be developed nearby with a large dome under which there are year-round recreational amenities, and nearby residential structures, as there are some communities like this near major cities in Europe.

One idea that should be explored is development on the large plateau in this area and it is suggested that the area be acquired and developed into a large, destination “green residential community” with covenants indicating that all residents must build using best environmental practices regarding solar energy, wind energy, construction designs, wastewater, and all other environmental practices. There are many people in the Mid- Atlantic area that would move to such a community and the community itself could become a tourist destination and a business center could be Iocated there as well. The development and preservation of the railroad could be funded in part by the success of the residential development, which would also meet Goal #1. Major private and public funding would be needed for partnership investment, acquisition, preservation, roads and utility infiastructure, planning, etc. This project would probably have the greatest impact on the image of the region as being environmentally friendly and progressive, yet linked

IV-30 to history through the steam railroad, which ties to the trail systems being created and promoted in the region.

Economic Development Proiect #12.4d

Project Name/Title: Breezewood Master Plan Type of Project: Master Plan Estimated Cost: $50,000

Breezewood, the “town of motels” in Bedford County, is the gateway to the region for many travelers from the Washington, D.C. area and points south. The community has a poorly planned and congested highway retail strip. The area has no public water. There are industrialhusiness park sites at this turnpike interchange setting. The area needs to be master planned so that new development (better hotels and restaurants) can be built, along with other specialty retail uses. This would be an ideal location for a tourist information center. A 45-acre KOZ site with public sewer is located in this area, one-half mile from 1-70 and 1-76.

Economic Development Proiect #12.4e

Project Narnenitle: Somerset Turnpike Area Master Plan Type of Project: Master Plan Estimated Cost: $50,000

As with Breezewood, the Somerset Turnpike Area near the Somerset Turnpike is poorly planned and is a very poor gateway to the west side of the region. As with Breezewood, a master plan to help provide guidelines for upgrading the image and make the area more conducive to more and improved development would greatly improve the image of the area.

Economic DeveloDment Proiect #12.4f

Project Name/Title: Historic Preservation Initiatives in the Southern Alleghenies Region Type of Project: Historic Renovation Grants or Low-Interest Loans Estimated Cost: $200,000

Attractively preserved historic residential areas in the region, such as are found in downtown Bedford, have attracted retirees and significant new investment. Other areas of similar quality exist throughout the region. These need the same level of attention as Bedford, so that new investment can occur. A series of upgraded historic places will generate investment both for new housing and specialty retail. They could represent a

IV-3 1 ; "! tourist attraction, if a sufficient number of places are fully upgraded. Funds should be made available for renovation of historical homes.

Economic DeveioDment Proiect #12.4g

Project Name/Title: Regional Meeting and Convention Marketing Type of Project: Marketing Estimated Cost: $500,000

The region's ability to attract and serve the meeting and convention market in the Mid-Atlantic region has improved dramatically over the last two years, and will be even better in the future. The Blair County Convention Center (BCCC) opened near Altoona in May 3,2001. The total development cost was $50.4 million including roads, building, infrastructure, etc. The infrastructure cost was $19.4 million. Sodexho has the management contract to operate the facility. There are six full-time employees and 100 part-time employees. A municipal authority owns the facility. It was partly fmanced through a bond issue. Federal and state government funds accounted for $37 million of the total cost. The un-funded public liability is guaranteed through the bed tax on area lodging establishments. The facility is hosting enough conventions to be slightly profitable, but marketing needs to be increased. The facility has attracted some conventions with attendees from other states. The Allegheny .Mountain Convention and Visitors Bureau, which operates the Convention Center, has 2 1 full-time employees. The state-of-the-art BCCC facility includes a ballroom that can accommodate up to 1,400 guests, nine meeting rooms, an executive boardroom, a 24,000-square-foot Exhibit Hall, and an outdoor reception area. The BCCC has full banquet capability and the connected 1OS-room Marriott Courtyard provides sleeping rooms for convention attendees.

In Johnstown, a new, high-quality conference center facility is in the process of being constructed at a site adjacent to the War Memorial. This new facility is scheduled to open in 2003 and wilI be able to accommodate a large, sit-down banquet for 1,000 persons, as well as mid-size conferences needing meeting and break-out space.

Significant public sector investment went into the BCCC project and the Johnstown conference center project now underway. Both of these meeting, convention, and banquet facilities are very important to the tourism base and image enhancement of the entire region. Persons coming to the region to attend meetings may return and establish business operations. A dear marketing strategy and strong promotional effort must be made to ensure that they are successm. Funding needs to be increased but with results mandatory or a change in marketing staff.

IV-32

..... Economic Development Project #12.4h

Project Name/Title: Regional Trail System Expansion Type of Project: Development Grants Estimated Cost: $500,000 to $1,000,000

Regional trail systems for hikers and bicyclists are an important component of the tourism product in the Southern Alleghenies region and make an important contribution to the region’s image. While many miles have been completed, there are still some trails left to be completed and development of trail amenities (restrooms, rest areas, restaurants) is still in its infancy. Completion of these trails is an important component of an economic development strategy for the region, because this type of amenity can also help attract persons to live and work in the area. This economic development project is to give regional support to the trail system network.

The Allegheny Trail in the region now has 100 continuous miles of trail. The number of visitors using the trail has been increasing every year. The estimates are that between 20,000 and 100,000 tourists are coming from outside the county to use the trail. Long-term residents of towns along the trail have come to realize that they are linked to something special. The Allegheny Trail AIliance has worked so that there will be a trail between Pittsburgh, Pennsylvania, and Cumberland, Maryland, so they are making “trail town initiatives”.

The Millenium Legacy Trail through the region will be part of the Pittsburgh- Harrisburg Greenway. The Allegheny Heritage Park organization received a $1.2 million planning grant to develop these trails. In Cambria County, tourist officials are working on the making the hometown of the actor Charles Bronson an attraction, with bed and breakfast, bike shop, catering facilities, trail heads, rest-rooms.

The trails are used quite a bit by persons with mountain bikes and the area is becoming known as a bicyclist haven. Tour de ‘Toona is one of the tourism success stories in the region. The annual event started 12 years ago as a small bicycle ride. In 2001, it was a 7-day staged race with 600 to 800 participanb: The route goes through Blair and Cambria counties. The event attracts Category 1 bikers, which is one step below Lance Armstrong. Altoona was a location for Olympic trials in bike racing in 1994, and U.S. Bicycling has rated Blair County as one of the best locations for biking along trails. The Tour de ‘Toona event now has its own web site paid for by grants and there has been some related investment such as bed-and-breakfast establishments near trail heads. Tourists whose primary purpose for visiting the area is biking are increasing in number, including many out-of-state tourists.

IV-33 ......

SECTION V EVALUATION

PERFORMANCE MEASURES

Part of the CEDS is to formulate a method of evaluating how the strategy is working during the years after it has been submitted and approved by the Economic Development Administration. Evaluative criteria have been created to address each of the goals identified in the Action Plan.

Goal 1: Halt population decline in the Southern Alleghenies region and stimulate population growth, especially in Cambria and Blair County, in order to sustain the regional economy. Take specific steps to stimulate well-planned, well- located, new residential development and redevelopment, being sure at the same time that this new development does not negatively impact the agricultural or tourism sectors.

Quantitative Measurement

0 The goal will be to measure growth (or declines) from the base-line population figures of the 2000 Census for each county in the region.

0 Total new housing starts for each county will also be measured at year-end for each year following this CEDS. A data-base will be developed with contacts in each county planning office or in individual communities to receive the data.

0 The long-term target will be for the 2010 Census to show that the population (population in households) of every county in the region increased over the 2000 level. Interim Census population estimates for each county will also be evaluated.

Qualitative Measurement

By Year 2 following the CEDS, the regional residential planning study will be completed. The development of sites identified as ideal for residential development will be tracked. Plans and strategies can be made for residential development incentives in hture CEDS updates.

Goal 2: Work to diversify the economy of the Southern Alleghenies region, by placing a higher proportion of total economic development resources towards economic sectors and sub-sectors other than manufacturing. These could include agriculture, health services, hardwoods, tourism, high-tech services, higher education services, etc.

v-1 Quantitative Measurement

By July 1, 2003, the SAP&DC will have completed a financial study showing the allocation of resources among sectors. A series of meetings will then take place with economic development representatives of each county to determine a strategy for reallocation of resources to non-manufacturing sectors. An annual assessment of the results of those follow-on meetings will be recorded.

Goal 3: Work to lower the unemployment rate in the Southern Alleghenies region through an approach that includes: retraining laid-off workers; supporting the retention, modernization, and expansion of manufacturing companies; diversifying the region’s economy away from its dependence on large manufacturing employers that tend to have major layoffs during down periods, and linking laid-off workers with jobs outside the region.

Ouantitstive Measurement

The number of laid-off workers hired each year as a result of the workforce delivery system network will be recorded. The unemployment rate in each county will be compared to the 2000 annual average presented in the Analysis Section, with the target of lowering the rates and keeping them lower. The number of laid-off workers retrained for new jobs will be recorded and compared on a quarterly basis. The number of manufacturers and other businesses receiving assistance through various economic development programs, and the dollar value of the assistance and number of jobs created or retained, will be recorded and compared to previous years, and will be kept track of on a regional level.

Goal 4: Work to prevent “brain drain” by attracting employers requiring knowledge workers, in order to provide jobs for students graduating from colleges and universities in the region or nearby and also help create higher-paying jobs for the region.

Ouantitative Measurement

Determine the number of projects supported each year that involve bringing more high-tech and medical research jobs to the region. Measure the number of jobs created and capital investment by the employers. Evaluate the type of financial, marketing, or technical assistance given to attract the employer and the specific type of jobs created, salary levels, educational requirements, etc. By July 1, 2004, a Master Plan for the Windber area should be underway, and progress recorded every six months.

v-2 0 By July 1,2005, the office park in Altoona should be established, and the progress of that office park in terms of land sales to companies requiring knowledge workers will be recorded and evaluated. 0 The number of graduates of colleges and universities in the region who find jobs requiring their education will be tracked each year and compared to previous years.

Goal 5: Strengthen the non-transportation infrastructure of the counties in the Southern Alleghenies region including provision of water, sewer, and telecommunications to support economic development

Ouantitative Measurement

0 By July 1, 2004, the telecommunications study of the region should be completed. A series of follow-on meetings will then take place to determine how public resources can be directed as an incentive to the private vendors of these services to create services in areas where they are most needed. 0 By July 1, 2003, a regional system for prioritizing public and water sewer infktructure needs in the counties in the region will be created and will be an ongoing working system. The results of the meetings and the priority projects will all be summarized and evaluated.

Goal6: Protect and enhance the natural and cultural resources of the Southern Alleghenies region and support economic development initiatives relating those resources including recreation, agricultural and heritage tourism, forestry, farming, and fisheries.

Ouantitative Measurement

The communication and meetings between SAP&DC and the Penn State Cooperative Extension Agricultural Agents will be recorded, and the results of farmland preservation programs will be summarized on a regional basis. By July 1, 2004, the technical study on the feasibility of creating a Southern Alleghenies regional web-site advertising the products of all farmers in the region will be completed. By July 1, 2004, a decision will be made regarding the creation of an agricultural product marketing office for farmers in the region. By July 1, 2004, the market feasibility study regarding the economics of the sawmill industry and the potential of attracting one or more additional sawmills to the region will be completed. The amount of funding available in various programs to finance capital investment in farms and for educational programs for both the public and’farmers will be tracked on an annual basis, as well as the amount and type of financing committed and disbursed to different farmers.

v-3 Goal7: Strengthen transportation linkages between the overall region and source markets for raw materials, tourists, and other inputs to the regional economy.

Ouantitative Measurement

0 An annual report will be made on the exact status of all components of the Appalachian Development Highway System that are located within the region, including the amount of funding. 0 An annual report will be made on the exact status of MAGLEV in Pennsylvania with a strategy of how to lobby for this project and speed the arrival of MAGLEV in the region.

Oualitative Measurement e The quality of promotion on the Internet and in print media regarding achievements in transportation in the region will be evaluated on a quarterly basis, with improvements made if found lacking. 0 Evaluate on an annual basis the number of new projects and improvements at the two regional airports.

Goal 8: Support the redevelopment and revitalization of the urban centers of Altoona, Johnstown, Huntingdon, Somerset, and other towns and cities in the region to encourage firms in all sectors to locate appropriate operations there.

Quantitative Measurement

0 Evaluate on an annual basis the number of redevelopment and revitalization projects funded and underway making improvements to Johnstown and to other cities in the region.

Oualitative Measurement

0 Evaluate on an annual basis the quality of life in the urban centers of the region and write a summary report on the status of these areas.

Goal 9: Support the clean-up, rehabilitation and redevelopment of brownfield properties throughout the region to improve the business image of the region as well as environment.

Quantitative Measurement

0 Evaluate on an annual basis the number of brownfeld clean-up, rehabilitation, or redevelopment projects funded and underway making improvements to Johnstown and to other cities in the region. The target should be for a minimum of $1 million to be spent every year on these projects, with the preferred amount being $3 to $5 million.

v-4 Goal 10: Strengthen the planning, marketing, and economic linkages between the six counties comprising the region.

Quantitative Measurement

0 Track and evaluate the number of meetings, conferences, promotional efforts, and communications between SAP&DC and regional leaders on the subject of regional planning, regional economic development, regional marketing, and regional cooperation. Record the level of support by specific leaders and lack of support by others.

Qualitative Measurement

0 On an annual basis, a person at SAP&DC in charge of marketing the regional economic development concept will summarize the overall level of regional cohesiveness in order to focus on a longer-term strategy regarding a restructuring of . the region or continuation with the present composition.

Goal 11: Improve and enhance the image and identity of the region as a business location as well as tourism destination.

By July 1, 2003, a regional marketing theme conference will be held and the results summarized in a report as well as electronically.

By July 1, 2004, the regional marketing theme will be established and ready for use in various marketing materials.

By July 1, 2003, the technical study determining the best regional tourism organizational structure will be completed.

Meetings with elected officials, economic development and tourism oficials from each county in the region will be held to determine if the results of the study can be implemented with regional, state and federal funding assistance.

Evaluate on an annual basis, the number of lodging projects receiving financial assistance through infrastructure grants, development grants, tax abatements, or other assistance. The type and amount of this assistance will be measured. The target will be for a minimum of $1 million in assistance to be given each year.

Evaluate on an annual basis, the number of tourism attraction projects, including the trail systems, receiving technical, marketing, infrastructure, historic renovation, or direct financial assistance. The type and amount of this assistance will be measured. The target will be for a minimum of $1 million in assistance to be given each year.

: ", ij

V-5 By July 1,2004, the Master Plan for Breezewood will be fimded and underway, with the progress recorded quarterly.

0 By July 1,2004, the Master Plan for the Somerset Turnpike Area will be funded and underway, with the progress recorded quarterly.

0 The amount of regional, state, or federal funding given for regional meeting and convention marketing of the Blair County Convention Center and Johnstown Conference Center will be evaluated on an annual basis. The number of meetings and conventions held each year, attendance, and estimates of economic impact will be prepared.

V-6 APPENDIX A AGE DISTRIBUTION DATA BY COUNTY

Table A-I TRENDS IN POPULATION BY AGE DISTRIBUTION, SOUTHERN ALLEGHENIES REGION, 1990-2000

Bedford Countv Chanae Blair County Chanae 1990-2000 1990-2000 Afs -1990 -2000 Percent -1990 -2000 Percent

Under 5 3,060 3,000 -2.0% 8,240 7,260 I -11.9% 5 to 9 3,180 3,220 1.3% 8,680 8,130 -6.3% 10 to 14 3,620 3,510 -3.0% 9,520 8,520 -10.5% 15 to 19 3,540 3,150 -1 1.O% 9,660 9,600 -0.6% 20 to 24 2,960 2,500 -1 5.5% 7,570 7,310 -3.4% 25 to 34 7,140 6,280 -12.0% 19,160 15,460 -19.3% 35 to 44 6,790 7,750 14.1% 18,740 19,420 3.6% 45 to 54 5,270 6,790 28.8% 13,450 18,420 37.0% 55 to 59 2,460 2,950 19.9% 6,460 6,820 5.6% 60 to 64 2,560 2,580 0.8% 6,880 5,760 -16.3% 65 to 74 4,410 4,530 2.7% 12,780 11,130 -12.9% ', 75 to 84 2,280 2,870 25.9% 7,230 8,480 17.3% 85 + -650 840 29.2% 2.170 2,850 31.3% Total 47,920 49,980 4.3% 130,540 129,140 -1.1%

Source: 1990 and 2000 U. S. Department of the Commerce, Bureau of the Census

.. : i ., : '.. _.-./'

A- 1 Table A-I (continued) TRENDS IN POPULATION BY AGE DISTRIBUTION, SOUTHERN ALLEGHENIES REGION, 9990-2000

Cambria County Chanae Fulton County Chanae 1990-2000 1990-2000 -1990 -2000 Percent -1990' -2000 Percent

Under 5 9,340 7,670 -17.9% 980 900 -8.2% 5 to 9 10,170 8,830 -13.2% 1,000 960 4.0% 10 to 14 I1,490 9,520 -17.1% 1,070 1,050 -1.9% 15 to 19 12,130 10,560 -12.9% 1,050 920 -12.4% 20 to 24 9,650 9,200 4.7% 920 750 -18.5% 25 to 34 22,870 17,430 -23.8% 2,110 1,860 -1 1.8% 35 to 44 23,000 22,500 -2.2% 1,920 2,180 13.5% 45 to 54 16,230 22,160 36.5% 1,620 1,910 17.9% 55 to 59 8,000 7,840 -2.0% 670 900 34.3% 60 to 64 9,600 6,800 -29.2% 720 750 4.2% 65 to 74 18,360 14,670 -20.1 % 1,080 1,190 10.2% 75 to 84 9,540 11,810 23.8% 590 670 13.6% 85 + 2.660 3.600 35.3% -130 210 615% Total 163,030 152,600 -6.4% 13,840 14,260 3.0% \ 1 Source: 1990 and 2000 U. S. Department of the Commerce, Bureau of the Census

A-2 ,l I I Table A-I (continued) TRENDS IN POPULATION BY AGE DISTRIBUTION, SOUTHERN ALLEGHENIES REGION, 1990-2000 Huntinadon County Chanae Somerset County Chanae 1990-2000 1990-2000 & -1990 -2000 Percent -1990 -2000 Percent

Under 5 2,790 2,480 -11.1% 5,020 4,200 -16.3% 5 to 9 2,760 2,610 -5.4% 5,480 4,870 -11.1% 10 to 14 2,950 2,980 1.O% 5,650 5,400 -4.4% 15 to 19 3,500 3,180 -9.1% 5,450 5,150 -5.5% 20 to 24 3,580 3,240 -9.5% 4,370 4,280 -2.1% 25 to 34 6,980 6,340 -9.2% 11,620 9,900 -14.8% 35 to 44 6,690 7,050 5.4% 11,090 12,360 11.5% 45 to 54 4,660 6,390 37.1 % 8,180 11,440 39.9% 55 to 59 2,040 2,490 22.1 % 3,930 4,170 6.1% 60 to 64 2,310 2,080 -10.0% 4,180 3,810 -8.9% 65 to 74 3,400 3,760 10.6% 8,000 7,160 -10.5%

75 to 84 1,940 2,230 A4.9% 4,200 5,480 30.5% '

85 + _.580 -760 31 .O% 1,060 1,800 69.8% Total 44,160 45,590 3.2% 78,220 80,020 2.3%

I Source: 1990 and 2000 U. S. Department of the Commerce, Bureau of the Census

A-3 Table A-I (continued) TRENDS IN POPULATION BY AGE DISTRIBUTION, SOUTHERN ALLEGHENIES REGION, 1990-2000 Southern Alleghenies RegSon Channe 1990-2000 AfZ -1990 -2000 Percent

Under 5 29,430 25,510 -13.3% 5 to 9 31,270 28,620 -8.5% 10 to 14 34,300 30,980 -9.7% 15 to 19 35,330 32,560 -7.8% 20 to 24 29,050 27,280 -6.1% 25 to 34 69,880 57,270 -18.0% 35 to 44 68,230 71,260 4.4% b 45 to 54 49,410 67,110 35.8% 55 to 59 23,560 25,170 6.8% 60 to 64 26,250 21,780 -17.0% 65 to 74 48,030 42,440 -1 1.6% 75 to 84 25,780 31,540 22.3% 85 + 7.250 10.060 38.8% Total 477,770 471,580 -1.3%

.) Source: 1990 and 2000 U. S. Department of the Commerce, Bureau of the Census .,

A-4