HomeMy WebLinkAboutPlan Appendix B12 Economic Development
Town of Ithaca 2014 Comprehensive Plan B‐123
B.12 Economic development
The following provides an economic profile of the Town. The information includes countywide economic and
employment information and a Town-specific profile of commercial and retail development.
B.12.1 General economy
The economy of Tompkins County has been steady and growing moderately over the last several decades. Since the
1960s, the economy has transformed from being primarily driven by durable goods manufacturing to being dominated
by the educational service sector. In 1962, manufacturing peaked with 6,200 jobs accounting for 36% of all private
sector jobs in Tompkins County. By 2005, manufacturing accounted for less than 8% of all private sector jobs, while
service sector jobs accounted for 90%. Conventional service jobs, such as retail, food service, and hospitality, have
remained steady over recent decades, and account for 16% of private sector jobs. Starting in the mid-1960s, and with
a rapid rise in the 1980s, educational services grew into the dominant sector and by 2005 accounted for 49% of
private sector jobs in the County. Technology firms producing software, equipment, and high tech services emerged
in the 1980’s and by 2005 accounted for 5% of permanent private sector jobs. Health services, transportation,
professional services, and other business services make up most of the remaining service jobs. The key wealth-
generating sectors in Tompkins County are education, manufacturing, and high tech. Agriculture and tourism, while
smaller in their economic contributions, add significantly to the community’s overall quality of life and help diversify
the economic base.77
The annual growth rate of the economy over the last decade has averaged around 1.5 %. The recent recession, which
started in 2008, hit Tompkins County much harder than the recession of 2002 and about equal to the 1991-92
recession. In the 1991-92 recession, Tompkins County lost approximately 1,600 jobs.78 Current figures indicate job
losses between 2008 and 2011 in Tompkins County at about 1,551.79 Unlike manufacturing or high tech
employment, which tends to fluctuate with the market, the relatively stable employment in the educational sector
allowed the area to fare better than the national and State average during the last recession. In addition, thousands of
students, many from outside the State, bring millions of dollars in consumer spending to the region each year. This
spending helps to support a host of industries from restaurants and real estate to other retail establishments in Ithaca
and the surrounding area.
There is no established economic development policy or strategy for the Town of Ithaca. However, the Tompkins
County Area Development (TCAD) is an excellent resource to develop incentives and initiatives to attract certain
industries and businesses. TCAD, a private, not-for-profit organization founded in 1964 is the economic development
agency for the County. The organization provides a number of services aimed at attracting, retaining, and fostering
the growth of businesses that create quality jobs and increase the tax base. TCAD identified three major goals in its
2006 economic development strategy for Tompkins County:
1. Increase and diversify housing supply,
2. Improve workforce and business skills,
3. Revitalize unique commercial districts and town centers.
Among its many efforts, TCAD manages a revolving loan program to help area businesses; serves as a conduit to the
tax-exempt bond market for local not-for-profit employers; partnered with the Workforce Investment Board to create
77 Tompkins County Economic Development Strategy, Tompkins County Area Development (2006).
78 Index of Economic Activity in Tompkins County, Department of Economics at Ithaca College,
http://www.ithaca.edu/economics/tcindex.htm, accessed 4 August 2011.
79 Quarterly Census of Employment and Wagers (QCEW), Department of Labor, Labor Statistics, http://www.labor.ny.gov/stats/ins.asp
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a comprehensive Workforce Strategy for Tompkins County; coordinated the efforts in producing the Countywide
Inter-Municipal Water and Sewer Feasibility Study for Tompkins County (March 2010); and in 2008 contracted with
Chumura Economic and Analytics to produce the Tompkins County Labor Market Region Study (April 2008).
B.12.2 Employers
Four of the top ten employers in Tompkins County are located wholly or partially within the Town of Ithaca: Cornell
University, Ithaca College, the Ithaca City School District and the Cayuga Medical Center.
Top employers in Tompkins County
Rank Employer Sector
1 Cornell University Education
2 Ithaca College Education
3 BorgWarner Manufacturing
4 Ithaca City School District Education
5 Cayuga Medical Center Health services
6 Tompkins County Government
7 Wegmans Retail
8 Franziska Racker Center Social services
9 City of Ithaca Government
10 William George Agency Social serrvices
Source: TCAD, http://www.tcad.org/businessInfo/factsandfigures.php#employ, accessed 1 August 2011
Institutions of higher learning
Higher education has provided a stable foundation for the local economy. Together the area's three institutions of
higher learning, Cornell University, Ithaca College and Tompkins Cortland Community College, have more than
14,000 employees, enroll more than 30,000 students per year, and generate billions of dollars worth of economic
activity. These institutions also provide numerous opportunities for cultural, recreational, and sports events for the
enjoyment of area residents,. These institutions provide continuing education opportunities for residents and provide
student interns and volunteers to support community programs and activities.
Cornell University, founded in 1865, has grown over the years in size, enrollment, and breadth of activity. It has
become internationally known as a research and development center. According to the Cornell University Division
of Planning and Budget, for the Fall 2012 semester, Cornell had a workforce of 9,734 full- and part-time employees
(faculty of 1,587, academic non-faculty of 1,073, and non-academic staff of 7,074).80 Its extensive holdings of land
also make it possible for Cornell to play a significant role as a local real estate developer and as a steward of
significant natural areas. While most of Cornell’s core campus is located in the City of Ithaca, many of its facilities
are situated within the Town of Ithaca, including the School of Veterinary Medicine, athletic fields, the Orchards
area, Plantations, the Tennis Center, Equestrian Center and the area around East Hill Plaza that is planned for future
University expansion as East Ithaca Village.
Ithaca College was founded in 1892 as a music conservatory, and was originally located within the City of Ithaca. In
the 1960s, Ithaca College moved its campus to South Hill in the Town of Ithaca. The College employs 1,697 faculty
80 Cornell University Office of Institutional Research and Planning, www.irp.dpb.cornell.edu/tableau_visual/academic‐workforce‐at‐a‐
glance, www.irp.dpb.cornell.edu/tableau_visual/non‐academic‐workforce‐at‐a‐glance
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and staff (non-student, full- and part-time in 2010).81 Most of its students live on campus. The College has been
expanding its facilities on campus in recent year, most recently with the addition of a new Athletic and Events Center.
Tompkins Cortland Community College (TC3), founded in 1967, is located in the Town of Dryden, with extension
centers in the City of Ithaca and Cortland. TC3 serves more than 3,000 students in credit programs, and another
3,000 in non-credit workshops and customized training. TC3 has 266 full-time employees (faculty, administration,
support) with 250 adjunct instructors. TC3 plays a vital role in the area’s workforce development.
Other major employers in the Town
The Cayuga Medical Center has been expanding its size and services over the years. Currently the facility employs
1,200 health care professionals, and has a medical staff of more than 200 affiliated physicians.
The Ithaca City School District (ICSD) has 5,247 students enrolled in its 12 schools; eight elementary, two middle,
one high school, and one 6-12 alternative school.82 The District covers an area of 155 square miles, covering urban,
suburban and rural areas. According to the ICSD 2011-2012 budget proposal, the District has 1,181 employees.
The Tompkins-Seneca-Tioga Board of Cooperative Education Services (BOCES), located in the Town on Warren
Road, provides career and technical programs for high school students, students with disabilities, and literacy and
employment training for adults. As part of its shared services mission, BOCES also provides non-instructional
support services to local school districts. The facility on Warren Road has about 290 employees.
B.12.3 Employment: major occupations
Education, training, and library-related occupations are the largest occupation group in Tompkins County, with 9,500
jobs in 2007, while office and administrative support occupations accounted for more than 8,600 jobs.83 Total
employment during the period was 50,341, according to the Bureau of Labor Statistics.
The occupation profile for Town residents indicates the most common occupations as: educational services,
healthcare, and social assistance (58%), followed by professional, scientific, management, administrative, and waste
management service (12%), arts, entertainment, recreation, accommodation, and food service occupations (7%), and
retail trade (6%).84 Of employed people, 82% were private wage and salary workers, 13% federal, state, or local
government workers, and 5% self-employed workers.85
Tompkins County has a highly skilled workforce. Many students choose to stay in the region after graduation,
resulting in a high percentage of residents with college and graduate degrees. This creates opportunities for industries
requiring highly educated workers and entrepreneurial activities. However, the skills embodied in the residents do not
necessarily match the skills demanded by firms in the region. According to the Chmura Economics and Analytics
report (2008), in 2006, close to half the positions created by Tompkins County firms needed workers with a minimum
of basic skills (short- to long-term on-the-job training), while 18.1% required medium skills (experience in a related
occupation, postsecondary vocational award, or associate‘s degree) and 32.7% called for high skills (four-year degree
or greater). High-skilled workers composed 40.3% of the labor supply while medium-skilled workers composed
81 Ithaca College Facts in Brief 2010‐11, Ithaca College Office of Institutional Research.
http://www.ithaca.edu/ir/facts/Ithaca_College_Facts_in_Brief_2010‐11.pdf, accessed 1 August 2011.
82 Ithaca City School District Registrar Office, 2012 school year.
83 Tompkins County Labor Market Region Study, Chmura Economic and Analytics for Tompkins County Area Development, April 2008.
84 American Community Survey 2008‐2012, United States Census Bureau.
85 American Community Survey 3yr. dataset 2010‐2012, United States Census Bureau.
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33.9% of the supply. The result was potential underemployment for 23.4% of the workforce. Such workers are likely
candidates to migrate out of the area in search of more suitable work.
Employment sectors: Town of Ithaca residents
Source: American Community Survey 2008‐2012
B.12.4 Commuters
The County labor market extends well beyond the borders of Tompkins County. According to the American
Community Survey data, approximately 14,901 workers commute from various neighboring and nearby counties into
Tompkins County.86
Due to the growing demand for workers in Tompkins County, the number of people incommuting has been steadily
increasing. In 1990, about 11,350 workers, or 20% of the workforce, commuted into Tompkins County. In 2000,
there were 13,713 incommuters; about 24% of the workforce in the county.
Incommuting into Tompkins County
County % of incommuters
Cortland (Cortland, Homer, McGraw) 22%
Tioga (Spencer, Candor, Owego) 21%
Cayuga (Auburn, Moravia, Aurora) 15%
Schuyler (Watkins Glen, Odessa, Montour Falls) 11%
Chemung (Elmira, Horseheads, Van Etten) 8%
Seneca (Seneca Falls, Interlaken, Ovid) 7%
Broome (Binghamton, Whitney Point, Lisle) 3%
Onondaga (Syracuse, Tully, Skaneateles) 2%
Other counties 11%
86 American Community Survey data (2006‐2008), Census Transportation Planning Products, United States Census Bureau. The Census
Bureau’s American Community Survey program has replaced the standard decennial census long form. This “continuous measurement”
program began in 2003.
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B.12.5 Commercial and manufacturing profile
The Town of Ithaca has some limited commercial and retail businesses but most of this type of economic activity is
concentrated in the City of Ithaca and Village of Lansing. There are currently four neighborhood commercial zones
and one community commercial zone in the Town. The neighborhood commercial zone is intended to serve nearby
neighborhoods, be low-volume traffic generators, and be minimally intrusive on residential neighborhoods. The
community commercial zone is intended to provide a broader range of economic activities that might draw clientele
from all areas of the Town and beyond its borders. These areas include:
Neighborhood commercial
Inlet Valley/ Elmira Road (NY 13). This area and includes several motels, a veterinary hospital, and a
stereo/electronics store. It has not experienced much change over the last decade
Danby Road (NY 96B) near the City of Ithaca/Town of Ithaca border . This site, known as Rogan’s Corner,
includes a restaurant, convenience store, gas station, liquor store and dessert catering business. The site is
constrained physically and is not anticipated to expand, but turnover in the occupants of some businesses has
occurred over the last ten years.
Danby Road (NY 96B)/King Road. This area includes a gas station/convenience store, furniture store, hotel,
coffee shop, and a food delivery/take-out store. Commercial uses continue to grow in this area, including the
proposed 19,000 square foot College Crossings neighborhood retail center.
Community commercial
Pine Tree Road/Ellis Hollow/Mitchell Street. This area continues to be in fluctuation and has recently
experienced a decline in the number and variety of commercial businesses. Once supporting two plazas, one on
each side of Pine Tree Road, now only East Hill Plaza remains, along with a number of freestanding businesses
along the perimeter of the plaza and on the west side of Pine Tree Road. East Hill Plaza is owned by Cornell
University, and operated by a private management company. It includes a supermarket (about 50,000 square
feet), several restaurants, a liquor store, laundromat, gym, and other retail spaces, along with almost 50,000
square feet of Cornell University administrative offices in former retail space. The freestanding businesses in the
Plaza include a hotel, several banks, gas station, dental office, and car wash. East Hill Plaza occupies about 22.2
acres. A drug store/pharmacy and a bank are the only commercial uses that remain on the opposite side of Pine
Tree Road. In recent years, Cornell University has significantly expanded their property holdings in this area.
Manufacturing and technical businesses
South Hill Business Campus on Danby Road (NY 96B). This 271,000 square foot facility originally opened in
1957 as the new regional headquarters of the National Cash Register Company, and later became home to the
Inlet Valley Corridor area. (DT)
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corporate headquarters of Axiohm Transactions Solutions. The manufacturing component eventually left Ithaca,
and the expansive factory stood idle for a time, until its most recent transformation into a successful multi-tenant
mixed use facility. The South Hill Business Campus was rezoned from Industrial to Planned Development Zone
in 2005 to allow a wide mix of uses. Currently, some 43 businesses occupy the complex, including approximately
30% manufacturing, 30% research and development, and 40% office use. As of 2011, approximately 90% of the
facility was rented and the owners are interested in future expansion of the campus.
Therm Incorporated. Therm is located on Hudson Street Extension, near the city-town boundary. It is a
manufacturer and supplier of state-of-the-art turbine blades, and has supplied custom-machined components
since 1935. The company has approximately 170 skilled and cross-skilled employees at its 130,000 square foot
facility.
Emerson Power Transmission was the most recent owner of the 760,733 square foot manufacturing complex
located off Aurora Street/Danby Road (NY 96B) in the Town and City of Ithaca. The plant was built in 1928,
with several subsequent expansions, and was used for manufacturing equipment for industrial and automotive
applications. The plant, closed since 2010, offers many opportunities for reuse and/or redevelopment.
Portion of Inlet Valley along Elmira Road (NY 13)/Five Mile Drive. This light industrial zoned area contains a
small cluster of construction and trade-related uses, a small machine manufacturing business, and a brewery
located near Five Mile Drive. The Ithaca Beer Company is a noticeably thriving presence in this area. The
company will be expanding into a new 15,000 square foot facility that will include a brewery, pub, beer garden,
and retail space on an adjacent site.