Revenues Could Decline 28.3% Annually in Bellevue’s Central Business District (CBD) During Construction of Sound Transit’s East Link Light Rail.
Revenues in Bellevue’s Central Business District have a high probability of declining by more than $229 million annually based on a projected decrease in customer visits during construction.
Assessment of the total impact considers nearly one-third of Bellevue households (50,355 total – 2010 U.S. Census) will make one less visit per month in each of four categories: shopping, dining, enjoying entertainment and using professional services in the CBD. Impact is based on results of 417 residents surveyed.
Nearly one-third (31.7%) of Bellevue residents in the research reported they will visit the Central Business District less frequently during construction. In addition, 3.4% said they will increase their visits, creating a net reduction of 28.3% in annual visits. The research found a resident makes an average of 165 trips to the Central Business District per year for shopping, dining, entertainment and professional services. Average amount spent per visit is $97.34. By calculating one less visit per month for each of the four activities noted, the total economic value of the “missed visits” is more than $1.8 million for individuals surveyed.
Net Loss of 28.3% in annual revenues during construction
|Value of visits ($97.34 average expenditure)||$809,344,877||$6,702,350|
|Decrease in expenditures|
(31.7% decrease in visits = 4 fewer visits/mo.)
|Increase in expenditures|
(3.4% increase in visits = 4 additional visits/mo.)
|Total net impact||-$229,044,600||-$1,896,765|