Economic Impact Analysis report reflects expanding influence of industrial park on regional growth
A report released recently by Indianapolis-based Policy Analytics, LLC on behalf of River Ridge Development Authority (RRDA) illustrates the significant impact River Ridge Commerce Center has made on a six-county region in Southern Indiana. The 2016 report, released in draft format this month, reflects activity and investments associated with the previous calendar year. This report is fifth in a yearly series by Policy Analytics evaluating the business and industrial park’s impact on the economy at local, regional, and state levels.
Policy Analytics gauges economic impacts using a software system called IMPLAN, professionally accepted economic impact assessment tool. According to the company, it models fiscal impacts using its proprietary Local Government Revenue approach, customizing it to include parcel-level data for all Indiana counties. This report is prepared under contract with RRDA.
Highlights of the 2016 Economic Impact Analysis report include consistent increases in employment data, labor income, economic value added, and economic output. Employment within River Ridge has increased from approximately 650 in 2006 to 7,200 in 2016. Companies located within River Ridge Commerce Center helped sustain more than 12,000 regional jobs, including those employed on-site. This equates to $1.7 Billion in economic input to the local economy, $455 Million in labor income, and $877 Million in added economic value. These approximated figures include RRDA activity, private investments, and private operations in 2016.
Jerry Acy, Executive Director at RRDA, explained the “real life” impact of these statistics. “Labor income translates into household income available for individuals to purchase homes, automobiles, food, clothing, and other lifestyle necessities. As a result, people and businesses in the entire region benefit directly and indirectly from activities associated with River Ridge Commerce Center.”
State income and sales tax revenues continue to increase year-over-year to $13.9 Million and $14.7 Million respectively in 2016. This is an increase from $5.5 Million and $6.2 Million in 2012. Local benefits include $5.6 Million in local income tax revenues, a significant portion of which RRDA appointing authorities receive. New infrastructure investments continue to be a top priority at River Ridge. To date, $65 Million has been invested in demolition costs and other infrastructure improvements. This includes more than $40 Million in road improvements, $16 Million in utilities, $7.7 Million in demolition, environmental, and site clearing expenses, and $1.1 Million in rail infrastructure.
Additional infrastructure improvements in support of River Ridge and its activities include:
Indiana Department of Transportation (Roadways) – $4.4 M
Indiana Department of Natural Resources (Water) – $6.5 M
City of Jeffersonville (Waste Water Treatment Plant) – $22 M
Federal Grants (Roads and Utilities) – $3.2 M
“The results of this report speak clearly to the positive impact River Ridge is having on the Southern Indiana region and the state as a whole,” said Acy. “We are very pleased to share the progress of what we are doing on these 6,000 acres as we move forward in our plans for the future.”
To access the complete 2016 Economic Impact Analysis report by Policy Analytics, LLC, please visit www.riverridgecc.com.
About River Ridge Commerce Center:
River Ridge Development Authority owns and manages the River Ridge Commerce Center, located on approximately 6,000 acres of fully deeded land along the Ohio River in Clark County, Indiana. Clark County Commissioners created the River Ridge Development Authority on February 17, 1998 with the purpose of redeveloping the former Indiana Army Ammunition Plant (INAAP). It is the mission of the River Ridge Development Authority as mandated by Indiana statutes to plan, rehabilitate, redevelop, and prepare the former INAAP for private enterprise and development for the benefit of the economy, property values, public health, safety, morals, and welfare. For more information, please visit www.riverridgecc.com.