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Economic Study of Flying J on Preble NY 

After losing two court battles against Preble NY, Flying J, a Utah based truck stop pulled out of Preble NY. The two court battles, instituted by Flying J, were attempts to overturn Preble's zoning laws. These laws required a 100 foot buffer strip between Flying J and the adjacent farmland. Because the parcel Flying J wanted to build on is so small they need to use the buffer strip for part of their operation. Even with the 100 foot buffer strip the parcel is still far too small by about 20 acres (see Winchester Flying J, wastewater article). However this is an economic study only and does not cover those areas,

Expenses for the town of Preble are in the form of infrastructure improvement costs required by the addition of a large 150+ truck stop. Much of these costs are in the fire department and HSMAT requirements. Preble has a volunteer fire department and very limited facilities to handle the requirements of the truck stop. A $250,000 foam truck would be needed as well as HSMAT facilities. Additions to the fire hall building as well as equipment cost could exceed $500,000 in initial investment as well as annual costs estimated in excess of $100,000. Additional costs for police are not included in this study.

Income from Flying J for Cortland County and the Town of Preble comes from property and sales tax. From Flying J's 'Draft Environmental Impact Statement' Appendix II ' Economic Impact Analysis' the estimated total sales for all goods is $17,250,408.00. Total sales tax revenue for the state is $690,016.00 and for the County is the same $690,016.00. However only $10,600 of that goes to the town of Preble. School taxes from the same document show $98,341.05 going to the Tully school district. Property tax total is $48,266.61. $11,144.39 for the Preble fire department and $3,056.98 to the Town of Preble.

Combined the Town of Preble will get $13,656.98 and the fire department will get $11,144.39. Obviously this would not begin to cover the costs associated with Flying J and property taxes would have to be increased to cover the loss. When town supervisor John Steger was asked about getting a larger share of the sales tax money for Preble he expressed no desire to do so.

JOBS: The bulk of the jobs offered at Flying J are of the minimum wage variety. A perusal of their web site (www.flyingj.com) shows jobs in all departments including management starting at less than $10 per hour. However the Town of Preble does not have a job problem. Preble is divided between farming and has become a bedroom community for Syracuse and Cortland. Flying J's job impact would likely make it difficult for farmers to find low wage earners, as they may prefer working at Flying J. In most cases Flying J workers would have to be imported from outside of Preble. In Preble anyone who wants a job already has one.

CONCLUSION: Flying J would have a negative economic impact on Preble and would cause property taxes to increase unless Cortland County gave Preble a much larger share of the sales tax revenue. The jobs created by Flying J would be insignificant for Preble.

Nice-N-Easy: Nice-N-Easy owns the parcel that Flying J wished to build on. The estimated sales tax income from Nice-N-Easy for Cortland County is $400,000.00 per year. In the three years Preble has been fighting Flying J Cortland County has lost $1,200,000.00 in lost income from Nice-N-Easy. In addition rumors of a gas station going into the old Sunoco station on the North East side of I81 and a nice restaurant on the South East side of I81 are on hold waiting for a final determination about Flying J. Combined these three businesses would generate the same or more income and jobs for Cortland County and Preble without the attendant infrastructure costs. Both Cortland and Preble are losing income as long as this goes on.

Source material: Flying J Draft Environmental Impact Statement, assumed knowledge, Preble Town Meeting Minutes, Winchester Flying J, wastewater article and other miscellaneous documents. Study prepared by F. T. Hogg, President SLPOA and independent businessman based in Preble New York since 1989.

 

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