Billion-dollar asset

New study gives hard numbers on Lake Martin's impact on area

By Kenneth Boone (Contact) | Alex City Outlook

Published Saturday, June 13, 2009

Editor’s Note: This is the first in a series of stories highlighting a new economic analysis of Lake Martin. See the next edition of The Outlook for a report about Lake Martin’s economic impact last year.

For years, area residents have had a gut-level feeling about the economic importance of Lake Martin. Now, based on a new independent analysis, they have the numbers to back up that feeling – and many will be shocked to learn just how much Lake Martin impacts east central Alabama’s economy.

For instance:

n Existing development on the lake and in waterfront subdivisions now has a total appraised value of $3.4 billion.

n In Tallapoosa County, lakefront properties account for half of all the assessed property value, even though lake homes make up less than a quarter of the county’s residences.

n Lake Martin development supports 1,600 total jobs, and if construction employment is included, that figure jumps to 3,170 jobs. Permanent jobs tied to the lake total 449, while retail and personal services jobs related to lake residents add another 1,100-1,200 jobs.

n Lake Martin residents and guests now account for about $89 million per year in retail sales in Tallapoosa, Coosa and Elmore counties.

n Since 2000, the value of new development on the lake totaled $918 million.

n By the year 2044, projections based on growth patterns in comparable locations show that Lake Martin could support an additional 6,200 homes, four new golf courses, two new hotels, more than a quarter million square feet of retail stores and 3,900 new jobs in our area.

n Over the next 35 years, projections show lake development will add $4.8 billion in investments to area’s economy.

These are just a few of the eye-opening findings established by a new economic analysis from Robert Charles Lesser & Co., which is known as the largest independent real estate advisory firm in the U.S.

A coalition of seven Lake Martin organizations engaged the RCL company to research both the current economic impact of Lake Martin and the potential for future growth. The coalition is made up of the City of Alexander City, the Elmore County Commission, Lake Martin Area Economic Development Alliance, Lake Martin Resource Association, Middle Tallapoosa River Basin Clean Water Partnership, Russell Lands and the Tallapoosa County Commission. LMRA and Russell Lands initially spearheaded the project, but all the organizations funded and provided data for the study.

LMRA President Charles Borden said, “We are very pleased with the results. We knew that the impact of Lake Martin on the economy of the three-county area and the state was large, but this proves it, this sets it out in terms of dollars and figures and jobs and information that is factual.”

Borden said the study, which reveals the lake’s current impact on Tallapoosa, Coosa and Elmore counties as well as projects its economic impact for the next 35 years, would initially be used to provide information to state lawmakers and the Alabama Power Co. re-licensing effort for Lake Martin. The analysis also projected the economic value created when the lake is at full pool as opposed to winter pool levels, which LMRA will present to Alabama Power Co. to support its request to add more full pool days before and after the current summer season.

“The results are interesting, exciting … as factual as you can be when you put a lot of assumptions into a study,” Borden said. “The assumptions were guided by RCL Co. and their experience doing this kind of work and the desire to come up with a product that would be defendable, that would not be exaggerated. Basically I think it’s a conservative report.”

“I think the impact is greater than anybody could have imagined,” said Don McClellan, head of the Lake Martin Area Economic Development Alliance. “Jobs, retail and taxes are the three areas of concentration … Being involved with economic development and going back to when I was mayor (of Alexander City), we always wondered what the economic impact was, and this really brings it down to dollars and cents.”

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