Agenda Packets - 1997/04/28 - Laserfiche WebLink

Home Browse Search

This result is corroborated by estimating middle income household gasoline purchases using the U.S. lip Department of Labor's Consumer Spending Survey. The Consumer Spending Survey notes an average • annual gasoline purchase of approximately $1,200 per household, which totals $11.1 million for the market area. The above market area estimate of 10 million gallons is, at 1.20 per gallon, $12 million. Through Traffic Gasoline Market 40,000 cars travel daily along Highway 10 between Highway 65 and Interstate 35W (a distance of about three miles). Silver Lake Road carries approximately 5,000 cars daily. Approximately 28,500 are non- local, or through traffic. Applying the same national averages for mileage and fuel efficiency to the estimated 28,500 through-traffic vehicles on Highway 10 reveals the through-traffic gasoline market to be 15.7 million gallons annually. Total Gasoline Market • Combining the household and through-traffic markets, the annual gasoline market is 25.7 million gallons. Existing Capacity There are four gas stations within approximately a mile (measured along the Highway 10 corridor) of the proposed development. An additional gas station is outside the 1.5-mile radius market area and is included in this analysis for a total of five gas stations along the Highway 10 corridor. At least two other gas stations are located in the market area neighborhoods although the market area for ip these stations is not commensurate with the proposed project, and gallonage is likely to be considerably lower from the assumptions used in this analysis. To fully capture the effect of surrounding gas stations on the market area, this analysis assumes the presence of three additional stations to those on Highway 10, and assumes all stations sell at national average levels. Given the above assumptions, existing gas stations account for approximately 36% of the gasoline market in the proposed development's market area. Market saturation levels thus appear to be fairly low within the market area. Alternative Market Analysis Rather than examining the local and through traffic market segments, a much more conservative perspective is to treat the traffic along Highway 10 and Silver Lake Road as the complete market for the proposed development. Making the same assumptions regarding fuel efficiency and mileage per vehicle as above, and assuming that all trips are single-destination round trips (all vehicles pass by the proposed development twice) the total annual market for gasoline along the site of the proposed development is estimated to be 12.4 million gallons. The national average service station capture of gross market is one percent. Assuming a one percent vehicle capture, a station on or near the proposed site will sell approximately 3,383 gallons per day, or just over 1.2 million gallons per year. Five stations would sell 6.2 million gallons annually. • -3-