Economics

The King Coal project has real potential for opening up unused land for future development. Improved access may stimulate and accelerate development opportunities in areas that were once considered too remote for industrial, commercial or residential development.

Increasingly, industries seek prepared sites. The primary prepared site in the King Coal – Route 52 study corridor is the McDowell County Industrial Park (Indian Ridge Industrial Park), which would be adjacent to the Preferred Alternative. This major industrial park is advancing rapidly, and the accessibility of a four-lane highway is seen as a significant benefit in future development.

The Indian Ridge Industrial Park has completed financing and provision of sewer, electric and gas utilities to the site. Water lines will be extended to the site in the near future. Plans are also established for a federal prison and a hotel for phases I and II of the industrial park.

Thus, while Indian Ridge Industrial Park is not dependent on the King Coal Highway, the park's ultimate development is likely to occur more quickly and with higher-quality results if it is served by a four-lane highway.

Other industrial parks, such as those along I-77 north of Princeton and in Bland County, Virginia, also may benefit from the King Coal Highway. Because of the rugged terrain, few additional sites are feasible for large-scale industrial development.

Commercial development will be attracted to new high-traffic areas, particularly along the new interchanges. These areas could include US 52 on both sides of Williamson and on the McDowell/Wyoming county line, WV Route 16 and US Routes 19 and 460. Topography is a major constraint and likely would limit any new large-scale commercial development (such as a shopping mall) to Mercer County. The topography constraint thus would work in favor of the existing downtown areas in the study corridor, whose long-term sustainability would be enhanced by commercial growth in their locales.

Residential development requires access to jobs and relatively flat land and is more likely to occur in areas with water service. Residential development is likely to be stimulated in areas near new and existing employment centers. There are numerous abandoned home sites in the corridor that would be suitable for new construction, and the development of completely new subdivisions is also likely. The improved accessibility from McDowell County to the Bluefield area and to industrial employment in nearby parts of Virginia is likely to stimulate residential development, particularly in western Mercer County. New jobs in the center of the corridor (from the industrial park and proposed prison) could stimulate new residential development in locations throughout the corridor.

Forecasts of employment and population for this area are not available. As a result, it is not possible to quantify the amount of future development. However, given the planning and public investments in infrastructure in the region, combined with a dramatic change in accessibility, it is reasonable to assume the results would be favorable.