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Economic Analysis The Harbor Trail in the Port of Long Beach and the Harbor District represents a unique mix of opportunities for improving the health and vitality of Long Beach residents, generating value to an existing destination for visitors, and encouraging a more active lifestyle for Harbor District employees, while increasing the economic opportunity for commercial enterprises along the trail. Though the project will require collaboration of numerous stakeholders through several jurisdictional boundaries, the development of the Harbor Trail in the Port of Long Beach could stand tantamount to the first ever public Bicycle / Pedestrian trail through a major working industrial shipping port. As discussed in the following report, the development of the trail would not only improve the aesthetic of the area, but also foster an increase of spending and trips from visitors and residents by as much as 80 percent. The Harbor Trail project design proposal for the Pier J segment has an estimated cost of $4 million in 2010/11 with an anticipated annual maintenance cost of $25,000 for the life of the trail. As development of this trail segment accounts for 30 percent of the overall trail-system design length; it can be anticipated that development of the Pier J section would yield 24,000 additional users per year and approximately $285,000 increased spending. The four scenarios A, B, C and D above are based on analysis of financial and usage projections collected for this report, and a moderate three and half percent discount rate is utilized. Comparisons of direct and indirect benefits are used to determine the project’s benefit/ cost ratio, net present value (NPV), and payback. These results are based on the California Department of Transportation Office of Transport Economics 1 methodology which suggests a systematic process for calculating and comparing benefits and costs of a project for two purposes: (1) to determine if it is a sound investment (justification/feasibility) and, (2) to see how it compares with alternate projects (ranking/priority assignment). 1 http://www.dot.ca.gov/hq/tpp/offices/ote/benefit_cost/index.html
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