Businesses along Indiana 931 report less semi-truck traffic, but passenger vehicle traffic has remained steady since the bypass opened last November. Staff photo by Kelly Lafferty
Businesses along Indiana 931 report less semi-truck traffic, but passenger vehicle traffic has remained steady since the bypass opened last November. Staff photo by Kelly Lafferty
The new U.S. 31 bypass came with a litany of questions for local businesses.

How would the changes in traffic patterns affect sales? How long would it take to see the full effect from that change in traffic patterns? What is the long-term prognosis for the land occupied by businesses on what’s now known as Ind. 931? What is the city’s vision for business development along the exits on the new highway?

Although much of the research is still in its infancy, a clearer view of the magnitude of the changes is starting to come into focus. And, the general consensus is that the new road hasn’t had anywhere near the catastrophic effect on business that was once feared.

In fact, nearly all feedback received has been positive. Local businesses — from gas stations to eateries to retail stores — almost all report they haven’t missed a beat since the bypass opened just before Thanksgiving last year.

Despite strong word-of-mouth evidence, there're no official numbers just yet on what the bypass has done to sales.

Greater Kokomo Economic Development Alliance CEO Charlie Sparks says the group will wait until early fall to officially survey those business, due mainly to the fact it wants to give ample time for sales numbers to even back out from the tornado that damaged properties along Ind. 931 right about the time the new bypass opened.

“For the most part, feedback has been positive, but we don’t just want to go off of anecdotal information,” Sparks said. “We want to do more of a survey and ask those businesses specifically how they’ve been affected by the bypass. … From a business standpoint, if you look at 931, there’s so much employment and investment along there that it’s very important to the community. Therefore, it’s important to the alliance.”

At least a pair of businesses made the move to 931 before the construction of the new road, and from all indications, are plugging along per usual.

Mancino's Pizza and Grinders moved from East Markland Avenue in front of Walmart to its current location on South Reed Road behind Applebees in May of 2012, and seems to be doing well.

“Sales are better at our new location.” Mancino’s general manager Cindy Hartman said. “We haven’t seen any less traffic. All I see when I look out our windows is less semi traffic. We haven’t seen any change since the bypass opened in terms of volume of customers. It’s done nothing negative to us whatsoever.”

In April of 2012, Robert Miller and Son Furniture opted to move from U.S. 31 in northern Tipton County to its current location in Kokomo Town Center after the Indiana Department of Transportation revealed construction on the new bypass would leave the old location without direct access to 31. Management agreed that wouldn’t work for the business or its customers.

Robert Miller and Son general manager Joel Williford reports sales have remained steady since the move, but also pointed out a furniture retailer is in a unique situation.

“We’re more of a destination stop,” he said. “It’s not as much an impulse buy. But, we have better traffic. It’s not really affected us the way it might've restaurants and some of the other types of stores. Kokomo has a great community and a lot of people like to support the local business. For us, it’s been a very nice move, and it’s gotten us back in touch with the community.”

Bob Evans is enjoying an uptick in business after rebounding from the dips in sales which came along with an unusually harsh winter in terms of cold temperatures and snowfall.

General manager Ty Mullen reported a 5 percent increase in sales in the second quarter of 2014 — April, May and June.

“And that’s after sales were up for us by 1 percent last year, so business has been fantastic,” Mullen said. “A lot of that has to do with a culture change that has allowed us to be operationally more sound.”

Apprehension for Bob Evans, in terms of the new bypass siphoning off its bottom line, was kept to a minimum due to the fact there’s an exit on the new 31 bypass directly off East Boulevard. The restaurant is one of the first substantial eateries off the exit heading west into Kokomo.

“Here’s how I thought about it: For every exit you have on the new bypass, there’s really not a full-service [restaurant] at many of those other exits,” Mullen said. “We’re the only one on an exit that has a breakfast-type place for people who are traveling and might be interested.”

Many businesses are eagerly awaiting the vegetation along the new 31 to take good enough hold that INDOT will approve the blue commercial information signs which will allow owners to advertise at which exits they are located. Restaurants, gas, stations, hotels, hospitals, colleges and universities and a variety of other attractions will be allowed to purchase spots on those signs.

“I think once the signs go up, and people know we’re here, that will help tremendously,” Mullen said. “Places like the gas station in Tipton (at U.S. 31 and Ind. 28), people are able to pass right by that. For people that don’t know the area, even with smartphones, once the signs are up, they’ll know we’re here. That can be huge, because those billboards can help point people where to go, and that’ll help rectify any traffic the old bypass may have lost for businesses.”

That gas station at 31 and 28, Day’s Marathon, also reports an increase of sales, which isn’t overly surprising considering it’s the first service station available to motorists heading south after exiting the new bypass.

“It’s helped some, but it’s hard to tell how much the bypass has to do with it with the Chrysler plant opening up behind us, too,” co-owner Mike Day said. “I can’t really tell for sure why, but it is better. It started when the bypass opened, but it’s continually getting better, so you know a lot of it has to do with the plant.”

The news of positive feedback sat well with Sparks.

“That’s encouraging,” he said. “I assumed, at best, sales numbers would be flat. We think the survey in early fall will give us an even better feel for the situation.”

INDOT conducted a study when the plans for the new bypass were still in their infancy which concluded nearly 80 percent of traffic on 931 came from adjacent counties including Tipton, Miami and Cass — local residents using the road for employment commutes and shopping. As a result, it shouldn't come as major shock that business has remained mostly steady.

“I doubt there were many [businesses] overly dependent on trucker traffic," mayor Greg Goodnight said. "What myself and other people have noticed is a shift of heavy trucks to 31, which has freed up 931 for a little more fluid traffic patterns.

"I think we're seeing now what the effects are," Goodnight added. "People are getting used to their commuting patterns."

One faction of business that appears to be hindered, even if slightly, is hotels, which may seem logical considering passer-through traffic is now diverted away from the developed parts of the city.

Days Inn general manager Darren Patel says numbers are “down some” since November, but like most others who reported sales increases, added other mitigating circumstances may be to blame.

“It is attributed to the bypass alone? No,” Patel said. “I would say, though, that until they get used to the bypass, it throws people off.”

For example, certain types of clients who normally would use hotels, such as what Patel referred to as “snowbirds,” retirement-aged travelers heading south during colder weather, failed to use local hotels in their return travels in early spring.

“There was a noticeable difference in the March and April months when people are starting to come back.” Patel said. “Two of my worst months I’ve had, compared to year over year, were March and April. We’ll see how the fall does when they start going back down. I expect I will see a little better business then, but I expected to take a little bit of a hit this time around because some people hadn’t realized just yet which ramp to take to reach hotels like this one. That’s what confuses the heck out of people.”

Commercial signs before the on and off ramps for the new bypass could help alleviate the confusion, Patel feels.

“There should be a board which explains ‘all the hotels are on this section, you don’t need to take the bypass,’” he explained. “You don’t need to stay on 31 for that, you can get off there, and then it’s the old travels people are used to with a choice of hotels.”

However, no plan is in the works for such a sign. Commercial signs will be placed along the individual exits on the new bypass for restaurants and hotels which qualify, not at the on and off ramps at the north and south entrances to the new bypass.

“That becomes a challenge for me in the sense of do I advertise on [those commercial billboards]?” Patel said. “I’m looking out for my own interests, but really if there were signs at each end, even just a billboard and not an INDOT sign, that said, ‘For hotels, take the 931 exit,’ I think it would clarify things for all the travelers who want to use Kokomo.”

The fear of businesses failing due to lack of traffic along 931 hasn’t slowed the real estate market. Wyman Group president Paul Wyman says interest, like retail business, has remained steady.

“I’m not surprised by it at all,” Wyman said. “The new bypass has considerable zoning requirements. The overlay district they’ve put along the bypass has created a situation where we’re not going to have a mass exodus from 931 out to the new bypass. I think it was a very smart move that will make for very controlled growth along the new bypass. I think that will be good for the future.”

At the same time, Wyman hopes to see continued growth along 931, as well.

“My hope is the old bypass still remains a solid business corridor for our community,” he said. “I think it’ll be the destination for new business. And, out on the new bypass, we hope to see things that are larger-type deals such as a company’s distribution center.”

Sparks made a similar point. Along with the strong retail business, many of Kokomo’s major employers, such as Chrysler and Delphi, have a presence along 931. From an economic standpoint, it is the Alliance’s hope similar types of businesses will pop up along the new bypass.

“A lot of the disposable income that supports the service sector and the retail sector is coming from that [931] corridor,” Sparks said. “It’s important that whatever type of development that would occur on the new bypass adds wealth to the community, [and] that we focus on primary employers for the new bypass, companies that will generate new disposable income and not just shift wealth around within the community.”

Since the moratorium on development was lifted for the new road at the turn of the year, Goodnight said interest from businesses wanting to build at the bypass intersections has been very limited and more retail than industry in nature. There are also no current plans to attract truck-stop type of business.

"You don't want retail to lead the future development," Goodnight explained. "You want it to follow a major investment, if that ever occurs. To say [a truck stop] will never be out there? No, but you just don't want that to lead development."

Having annexed the land which includes the bypass intersections and exits, Goodnight said the city hopes to prevent any increase to taxpayers as far as cost to maintain government with new development.

He pointed out there are several large parcels of land inside the city which remain undeveloped, and wants to make sure any shift in development occurs within Kokomo's current major business corridors such as the ones along Washington and Lafountain streets, Boulevard, Lincoln Road and 931 before considering the land along the new bypass.

"If the right project came along and there wasn't enough available acreage in some of the industrial areas we have inside the city, we would obviously look at giving some special consideration," Goodnight added. "But, that's not the case at this point."

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