ML20062E225
| ML20062E225 | |
| Person / Time | |
|---|---|
| Site: | Cook  |
| Issue date: | 07/31/1982 |
| From: | Branch K MOUNTAIN WEST RESEARCH, INC., SOCIAL IMPACT RESEARCH, INC. |
| To: | NRC OFFICE OF NUCLEAR REGULATORY RESEARCH (RES) |
| References | |
| CON-FIN-B-6268 NUREG-CR-2749, NUREG-CR-2749-V04, NUREG-CR-2749-V4, NUDOCS 8208090019 | |
| Download: ML20062E225 (274) | |
Text
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NUREG/CR-2749 Vol. 4 Socioeconomic Impacts of Nuclear Generating Stations D. C. Cook Case Study
- Prepared by K. Branch /MWRI Mountain West Research, Inc.
with i
Social impact Research, Inc.
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Prepared for U.S. Nuclear Regulatory Commission i
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NOTICE This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, or any of their employees, makes any warranty, expressed or implied, or assumes any legal liability of re-sponsibility for any third party's use, or the results of such use, of any information, apparatus, product or process disclosed in this report, or represents that its use by such third party would not infringe privately ov.ned rights.
1 Availability of Reference Materials Cited in NRC Publications Most documents cited in NRC publications will be available from one of the following sources:
- 1. The NRC Public Document Room,1717 H Street, N.W.
Washington, DC 20555
- 2. The NRC/GPO Sales Program U.S. Nuclear Regulatory Commission Washington, DC 20555
- 3. The National Technical Information Service, Springfield, L 22161 Although the listing that follows represents the majority of documents cited in NRC publications, it is not intended to be exhaustive.
Referenced documents available for inspection and copying for a fee from the NRC Public Docu-ment Room include NRC correspondence and ir.ternal NRC memoranda; NRC Office of Inspection and Enforcement bulletins, circulars, information notices, inspection and investigation notices; Licensee Event Reports; vendor reporn gnd correspondence; Commission papers; and applicant and licensee documents and correspondence.
The following documents in the NUREG series are available for purchase from the NRC/GPO Sales Program: formal NRC staff and contcactor reports, NRC sponsored conference proceedings, and NRC booklets and brochures Also available are Regulatory Guides, NRC regulations in the Code of Federal Regulations, and Nuclear Regulatory Commission Issuances.
Documents available from the National Technical Information Service include NUREG series reports and technical reports prepared by other federal agencies and reports prepared by the Atomic l
Energy Commission, forerunner agency to the Nuclear Regulatory Commission.
Documents available from pubbc and special technical libraries include all open literature items, such as books, journal and periodical articles, and transactions. Federal Register notices, federal and state legislation, and congressional reports can usually be obtained from these libraries.
Documents such as theses, dissertations, foreign reports and translations, and non-NRC conference proceedings are available for purchase from the organization sponsoring the pubbcation cited.
Sing!e :: pies of NRC draft reports are available free upon wntten request to the Division of Tech-nical Information and Document Control, U S. Nuclear Regulatory Commission, Washington, DC 20555.
Copies of industry codes and standards used in a substantive manner in the NRC regulatory process are maintained at the NRC Library, 7920 Norfolk Avenue. Bethesda, Maryland, and are available there for reference use by the public. Codes and standards are usually copyrighted and may be purchased from the originating organization or, if they are American National Standards, from the American National Standards Institute,1430 Broadway, New York, NY 10018. f GPO Pnnted copy price. $8.00
NUREG/CR-2749 Vol. 4 RE Socioeconomic Impacts of Nuclear Generating Stations D. C. Cook Case Study i Manuscript Completed: January 1982 Date Published: July 1982 Prepared by K. Branch, Mountain West Research, Inc.
, Mountair. West Research, Inc.
1414 W. Broadway Suite 228
[ Tempe, AZ 85282
)
i Social impact Research, Inc.
Areis Building, Suite 427 2366 Eastlake Avenue East Seattle, WA 98101 Prepared for Division of Health, Siting and Waste Management Office of Nuclear Regulatory Research U.S. Nuclear Regulatory Commission Washington, D.C. 20555 NRC FIN B6268 i
I
ABSTRACT 4
This report documents a case study of the socioeconomic impacts of the construction and operation of the D. C. Cook nuclear power station. It is part of a major post-licensing study of the socioeconomic impacts at twelve nuclear power stations. The case study covers the period beginning with the announcement of plans to construct the reactor and ending in the period, 1980-81. The case study deals with changes in the economy, population, settlement patterns and housing, local government and public services, social structure, and public response in the study area during the construction /
operation of the reactor.
A regional modeling approach is used to trace the impact of construction / operation on the local economy, labor market, and housing market. Emphasis in the study is on the attribution of socioeconomic impacts to the reactor or other causal factors. As part of the study of local public response to the construction / operation of the reactor, the effects of the Three Mile Island accident are examined.
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L TABLE OF CONTENTS PAGE CHAPTER 1: INTRODUCTION 1 1.1 The NRC Post-Licensing Studies 1 1.1.1 Objectives of the Post-Licdnsing Studies 1 1.1.2 Components of the Post-Licensing Studies 2 1.1.3 Three Mile Island 4 1.2 Overview of the Case Study Organization 4 CHAPTER 2: OVERVIEW AND DESCRIPTION OF THE PROJECT 11 2.1 Introduction 11
.. Z Location 11 2.3 The Utility 11 2.3.1 Corporate Background 11 2.3.2 Service Area 13 2.3.3 Generating Capacity and Production 14 2.4 The Project 14 2.4.1 The Project Site 14 2.4.2 The Plant 15 2.5 Construction 16 2.5.1 Announcement 16 2.5.2 Schedule and Cost 16 2.5.3 Construction Phase Work Force and Earnings 17 2.5.4 Construction Experience 21 l 2.6 Operations 22 2.6.1 Schedule and Costs 22 2.6.2 Operations Phase Work Force and Earnings 22 2.6.3 Operating Phase Experience 25 2.7 Taxes 26 2.8 Corporate / Community Programs 26 2.8.1 Emergency Planning 26 2.8.2 Visitors' Center 28 j 2.9 Chronology of Major Events 28 CHAPTER 3: DISTRIBUTION OF DIRECT PROJECT EFFECTS AND IDENTIFICATION OF THE STUDY AREA 30 3.1 Introduction 30 v
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!- TABLE OF CONTENTS-Continued f
PAGE 3.2 The Region 30 3.2.1 Description of the Region 30 3.2.2 Specification of Places within the Region 33 3.3 Distribution of Direct Project Effects within the Region 37 3.3.1 Distribution of Direct Basic Employment, by Place of Work,1972 and 1978 37 3.3.2 Distribution of Direct Basic Workers, 1972 and 1978 38 3.3.3 Distribution of Utility Purchases, 1972 and 1978 40 1
3.3.4 Distribution of Taxes,1972 and 1978 40 3.4 Selection of Study Area 43 3.4.1 Area Selected 43 3.4.2 Rationale 43 CHAPTER 4: ECONOMY OF THE STUDY AREA 47 4.1 Introduction 47 4.2 Economic History of the Study Area 47 4.2.1 Berrien County 47 4.2.2 The Study Area: Bridgman and Lake Township 50 4.3 Economic Changes during the Study Period 50 4.3.1 Employment and Income 51 4.3.2 Labor Force 57 4.4 Economic Changes in the Study Area and Berrien County due to the Project 62 4.4.1 Estimation of Project Related Employment and Income Effects 62 4.4.2 Effects of the Project on the Study Area Economy 86 4.4.3 Effects of the Project on the Labor Force of the Study Area 95 CHAPTER 5: POPULATION 100 5.1 Introduction 100 5.2 Demographic Trends 100 5.3 Population Effects due to the Project 107 5.3.1 Introduction 107 vi n '
TABLE OF CONTENTS-Continued PAGE 5.3.2 Population Effecta in 1972 107 5.3.3 Population Effects in 1978 111 5.3.4 Summary 114 CHAPTER 6: SETTLEMENT PATTERNS AND HOUSING 116 6.1 Introduction 116 6.2 Settlement Patterns 116 6.2.1 Factors Influencing Settlement Patterns of the Study Area and Berrien County 116 6.2.2 Population Distribution 119 6.3 Housing 120 6.3.1 Housing Prior to Construction of the D. C. Cook Nuclear Plant 120 6.3.2 Changes in the Housing Stock during the Study Period 122 6.3.3 Effects of the D.C. Cook Nuclear Plant on Housing in the Study Area and Berrien County 126 CHAPTER 7: LOCAL GOVERNMENT AND PUBLIC SERVICES 133 7.1 Introduction 133 7.2 Government Structure 133 7.2.1 Berrien County 133 7.2.2 The Study Area 134 7.2.3 Bridgman 134 7.2.4 Lake Township 135 7.2.5 The Bridgman School District 136 7.3 Budgets for Major Government Jurisdictions during the Study Period 136 7.3.1 Revenues 136 7.3.2 Revenues by Jurisdiction 138 7.3.3 Expenditures 153 7.4 Selected Public Services 159 7.4.1 Education 159 7.4.2 Transportation 165 7.4.3 Public Safety 169 7.4.4 Social Services 171 vii s -
TABLE OF CONTENTS-Continued PAGE 7.4.5 Water Services 172 CHAPTER 8: SOCIAL STRUCTURE 174 8.1 Introduction 174 8.2 Social Structure at the Beginning of the Study Period (1967) 174 8.2.1 Identification of the Social Groups 174 8.2.2 Group Profiles 175 8.2.3 Interaction among the Groups 189 8.3 New Groups in the Study Area during the Study Period 191 8.4 Distribution of the Project Effects to the Groups 191 8.4.1 Economic 191 8.4.2 Demographic 194 8.5 Changes in the Social Structure and the Role of the Effects of the Project 199 8.5.1 Changes in the Profiles of the Groups 199 8.5.2 Changes in the Relationships among the Groups 209 CHAPTER 9: PUBLIC RESPONSE 214 9.1 Introduction 214 9.2 Response during the Preconstruction Period 214 9.2.1 Announcement 214 9.2.2 Siting 215 9.2.3 Permits and Hearings 216 9.3 Public Response between 1969 and 1977 218 9.3.1 Construction Permit and Hearings 218 9.3.2 Operating License and Hearings 225 9.3.3 Other Issues 226 9.3.4 Summary of Hearings and Litigation during the 1969-1977 Period 227 9.4 Public Response during 1978 and 1979 228 9.4.1 Public Relations 228 9.4.2 Operations Safety 230 9.4.3 The Accident at Three Mile Island 231 viii
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TABLE OF CGNTENTS-Continued PAGE 9.4.4 Emergency Preparedness 232 9.4.5 Spent Fuel Storage 232 9.5 Summary 234 9.5.1 Public Concerns over the Station 234 9.5.2 Role of Study Area Residents in the Public Response 234 9.5.3 Effects of Public Response on Groups in the Study Area 235 CHAPTER 10: EVALUATION AND SIGNIFICANCE OF THE SOCIO-ECONOMIC EFFECTS OF THE D.C. COOK PROJECT, 1967-1978 237 10.1 Introduction 237 10.2 Evaluation of the Effects of the Project by Groups in the Study Area 237 10.2.1 The Longtime Residents 237 10.2.2 Lakeshore Property Owners 239 10.2.3 Other Newcomers 240 10.3 Significance of the Effects of the Project 241 BIBLIOGRAPHY 243 PERSONAL COMMUNICATIONS 250 ix
LIST OF FIGURES FIGURE PAGE NUMBER TITLE NUMBER l
1-1 United States Nuclear Regulatory Commission Post-Licensing Study, Case Study Sites 3 l
1-2 Case Study Organization 5 2-1 Location of D.C. Cook Nuclear Plant 12 2-2 Average Daily Construction Work Force, D.C. Cook Nuclear Plant 19 3-1 Study Region: Berrien County, Michigan 32 3-2 D.C. Cook Nuclear Plant Study Area: Bridgtnan/ Lake Township 44 4-1 Estimation of Project-Related Employment and Income Effects 63 4-2 Project-Related Employment by Place of Work in Berrien County, 1967-1978 93 4-3 Project-Related Employment by Place of Work in Study Area, 1967-1978 94 4-4 Labor Force Effects of D.C. Cook Nuclear Plant on Berrien County, 1967-1978 97 5-1 Population of Berrien County, Bridgman, and Lake Township, 1900-1978 101 6-1 Project-Related Demand for Housing and Cumulative Housing Units Constructed in Study Area and in Berrien County, 1968-1978 127 7-1 Bridgman School District Boundary 137 X
LIST OF TABLES TABLE PAGE NUMBER TITLE NUMBER 2-1 D.C. Cook Nuclear Plant, Costs of Construction, 1968-1978 18 2-2 D.C. Cook Nuclear Plant, Construction Work Force, Average Annual Employment, Average Annual Earnings Per Worker, and Total Yearly Income, 1967-1978 20 2-3 D.C. Cook Nuclear Plant, Annual Cost of Operation, 1975-1978 23 2-4 D.C. Cook Nuclear Plant, Operations Work Force, Average Annual Employment and Income, 1967-1978 24 2-5 D.C. Cook Nuclear Plant, Taxes Paid by Indiana and Michigan Power Company, 1969-1978 27 2-6 D.C. Cook Nuclear Plant, Chronology of Major Events 29 3-1 D.C. Ccok Nuclear Plant, Aggregate Units in Berrien County, 1950-1970 34 3-2 D.C. Cook Nuclear Plant, Direct Basic Workers, by Place of Residence,1972 and 1978 39 3-3 D.C. Cook Nuclear Plant, Utility Purchases for Plant Construction and Operation By Place of Transaction in Berrien County,1972 and 1978 41 l
3-4 D.C. Cook Nuclear Plant, Distribution of Tax Payments,1972 and 1978 42 3-5 D.C. Cook Nuclear Plant, Summary of Direct Project Effects,1972 and 1978 45 4-1 D.C. Cook Nuclear Plant, Employment by Place of Residence, Berrien County, Michigan,1940, 1950, 1960, 1970 49 4-2 D.C. Cook Nuclear Plant, Employment by Place of Work by Industrial Sector, Berrien County, Michigan, 1967-1978 52 4-3 D.C. Cook Nuclear Plant, Derivation of Personal Income by Place of Residence, Berrien County, Michigan, 1967-1978 54 xi
LIST OF TABLES-Continued TABLE PAGE NUMBER TITLE NUMBER 4-4 D.C. Cook Nuclear Plant, Labor Force, Employrnent and Unemployment, and Labor Force Participation-by Place of Residence for Ber'ien r County, State of Michigan, and the United States, 1967-1978 58 l
4-5 D.C. Cook Nuclear Plant, Labor Force Participation Rates by Sex, Berrien County, State of Michigan, and United States,1960 and 1970 60 4-6 D.C. Cook Nuclear Plant, Total Project-Related Basic Employment and Income, Study Area and Berrien County,1972 70 4-7 D.C. Cook Nuclear Plant, Distribution of Project-Related Basic Employment and Income, Study Area and Berrien County,1972 72 4-8 D.C. Cook Nuclear Plant, Estimated Effective Basic Income, Berrien County,1972 74 4-9 D.C. Cook Nuclear Plant, Estimated Effective Basic Income, Study Area,1972 75 4-10 D.C. Cook Nuclear Plant, Nonbasic Employment and Income, Study Area and Berrien County,1972 77 l
4-11 D.C. Cook Nuclear Plant, Total Project-Related Employment and Income by Place of Work, Study Area and Berrien County,1972 79 4-12 D.C. Cook Nuclear Plant, Total Project-Related Employment and Income By Place of Residence, Study Area and Berrien County,1972 80 4-13 D.C. Cook Nuclear Plant, Distribution of Project-Related Income, Study Area and Berrien County,1978 82 4-14 D.C. Cook Nuclear Plant, Estimated Effective Basic Income, Berrien County,1978 84 4-15 D.C. Cook Nuclear Plant, Estimated Effective Basic Income, Study Area,1978 85 4-16 D.C. Cook Nuclear Plant, Nonbasic Employment and Income, Study Area and Berrien County,1978 87 xii
LIST OF TABLES-Continued TABLE PAGE NUMBER TITLE NUMBER 4-17 D.C. Cook Nuclear Plant, Total Employment and Income due to the Project by Place of Work, Study Area and Berrien County,1978 88 4-18 D.C. Cook Nuclear Plant, Total Employment and Income Effects of the Project by Place of Residence, Study Area and Berrien County,1978 89 4-19 D.C. Cook Nuclear Plant, Annual Average Direct Basic Employment and Income by Place of Work, 1967-1978 91 4-20 D.C. Cook Nuclear Plant, Estimated Annual Employment and Income Effects by Place of Work, Study Area and Berrien County, 1967-1978 92 4-21 D.C. Cook Nuclear Plant, Estimated Annual Employment and Income Effects by Place of Residence, Study Area and Berrien County, 1967-1978 96 5-1 D.C. Cook Nuclear Plant, Population in the Study Area and Berrien County, 1900-1978 102 5-2 D.C. Cook Nuclear Plant, Nonwhite Population in Berrien County and Study Area, 1960-1970 105 5-3 D.C. Cook Nuclear Plant, Age Distribution of Study Area and Berrien County,1970 106 5-4 D.C. Cook Nuclear Plant, Project-Related Employment by Worker Category, Study Area and Berrien County,1972 108 5-5 D.C. Cook Nuclear Plant, Population In-Migration due to the Project, Study Arca and Berrien County,1972 110 5-6 D.C. Cook Nuclear Plant, Project-Related Employment by Worker Category, Study Area and Berrien County,1978 112 5-7 D.C. Cook Nuclear Plant, Population In-Migration due to the Project,1978 113 s
5-8 D.C. Cook Nuclear Plant, Population Increase due to In-Migration of Project-Related Workers and Household Members, Study Area and Berrien County, 1967-1978 115 xiii L . _ _ _ _ _ - _ _ _ _ _ _ _ _ _ _ _ _ _ _
LIST OF TABLES-Continued TABLE PAGE NUMBER TITLE NUMBER 6-1 D.C. Cook Nuclear Plant, Housing Characteristics, Study Area and Berrien County,1970 121 6-2 D.C. Cook Nuclear Plant, Occupied Housing:
Year Built and Type of Occupancy, Study Area and Berrien County,1970 123 6-3 D.C. Cook Nuclear Plant, Recorded Plats in the Study Area and Berrien County, 1960-1978 124 6-4 D.C. Cook Nuclear Plant, Housing Starts in the Study Area and Berrien County, 1967-1978 125 6-5 D.C. Cook Nuclear Plant, Housing Requirements of Project-Related Population, 1968-1978 129 7-1 D.C. Cook Nuclear Plant, Berrien County Revenue Sources, 1967-1978 139 7-2 D.C. Cook Nuclear Plant, Berrien County Assessed Valuation, Millage Rates, and D.C. Cook Tax Payments, 1967-1978 140 7-3 D.C. Cook Nuclear Plant, Bridgman General Operating Revenues, 1967-1978 142 7-4 D.C. Cook Nuclear Plant, Equalized Assessed Valuation and Tax Payments Bridgman, 1967-1978 143 7-5 D.C. Cook Nuclear Plant, Lake Township Revenues 1968-1979 145 7-6 D.C. Cook Nuclear Plant, Equalized Assessed Valuation and Tax Payments, Lake Township, 1968-1980 146 7-7 D.C. Cook Nuclear Plant, Bridgman School District General Fund and Special Program Revenues, 1967-1978 148 7-8 D.C. Cook Nuclear Plant, Equalized Assessed Valuation and Tax Payments, Bridgman School District, 1967-1978 150 7-9 D.C. Cook Nuclear Plant, Estimated Property Tax Payments to Bridgman School District per Residential Property Owner, 1969, 1974, and 1978 152 xiv
LIST OF TABLES-Continued TABLE PAGE NUMBER TITLE NUMBER 7-10 D.C. Cook Nuclear Plant, Berrien County Expenditures, General Fund arid Three Self-Governed Departments, 1967-1978 155 7-11 D.C. Cook Nuclear Plant, Bridgman General Fund Expenditures and Transfers, 1967-1978 156 7-12 D.C. Cook Nuclear Plant, Lake Township Expenditures, 1967-1978 158 7-13 D.C. Cook Nuclear Plant, Per Capita Expenditures,1967 and 1978 160 7-14 D.C. Cook Nuclear Plant, Characteristics of the Bridgman School System, 1967/68-1977/78 162 8-1 D.C. Cook Nuclear Plant, Employment by Industry and Occupation, Study Area and Berrien County,1970 177 8-2 D.C. Caok Nuclear Plant, Total Project Employment Effects, Study Area,1972 and 1978 192 8-3 D.C. Cook Nuclear Plant, Approximate Employment and Income Effects, Study Area Residents,1972 and 1978 193 xv
i NRC POST-LICENSING STUDY NRC Project Coordinators:
Donald Cleary Michael Kaltman Clark Prichard Project Director:
James A. Chalmers, Mountain West Research, Inc.
Research Team:
Pamela A. Bergmann, Mountain West Research, Inc.
Kristi Branch, Mountain West Research, Inc.
David Pijawka, Mountain West Research, Inc.
Cynthia Flynn, SocialImpact Research,Inc.
James Flynn, Social Impact Research, Inc.
Report Production:
Charlene Samson Riedell, Editor and Manager Shirley Dawson Taffy Perales Patricia G. World
, Karyn Riedell i
Graphics:
l Dee Fuerst xvii
l CHAPTER 1: INTRODUCT' ION 1.1 The NRC Post-Licensing Studies I This report-the case study of the Donald C. Cook (D. C. Cook) Nuclear Plant located in Berrien County, Michigan-is one of a series of reports that are being prepared as part of the NRC Post-Licensing Studies. The purpose of this chapter is to describe the objectives of the NRC Post-Licensing Studies, the major components of the studies, and the relationship of research concerning Three Mile Island to the overall study plan, and the organization of this case study report.
1.1.1 Objectives of the Post-Licensing Studies The Post-Licensing Studies have four main objectives: to determine the socio-economic effects of nuclear power stations; to ascertain the significance of these effects to individuals and groups affected; to identify the determinants of the effects and their significance; and to determine whether currently available assessment methodology could have been used to anticipate the most significant of these effects.
Each of the latter three objectives depends upon clear identification of the effects of the nuclear station-the difference in the socioeconomic conditions as they occurred with the station and those that would have prevailed had the station not been
[
built. Once the effects have been identified and their incidence among groups estab-lished, they must be placed in the context of the values of the individuals affected by
! them to determine their significance. The explication of the effects, the evaluation of 1
those effects, and their significance to local residents permits an analytic consideration of the overall evaluation and the response of local residents to the presence of the nuc-lear facility in or near their communities.
After determining the patterns of effects caused by the facilities and the meaning of the effects to local residents across sites, the Post-Licensing Studies will turn to an examination of the causes of the documented effects. It is necessary to know what combination of site, project, or other circumstantial determinants appears to be respon-sible for the effects that ensued and for the levels of significance attached to them by local residents. In short, some plausible explanation for the consequences of constructing and operating the stations must be developed.
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The final objective of the Post-Licensing Studies is somewhat different from ths preceding three in that it is directly concerned with the methodology of the socioeconomic-assessment process. The central question is whether there are assessment methods currently available that could have been used to foresee the most significant of the socioeconomic effects associated with the nuclear plant. Based on the answer to this question, recommendations will be developed with respect to the assessment methods that can most appropriately be applied to anticipate the effects of the construction and operation of nuclear generating stations.
1.1.2 Components of the Post-Licensing Studies The Post-Licensing Studies have three distinct components: the individual case studies, the cross-site analysis, and the methodological recommendations. The individual case studies are being conducted at twelve sites, as listed in Figure 1-1. The twelve case study reports will meet the first two objectives of the study. They will establish the social and economic effects of the nuclear station, and they will determine the signifi-cance of the effects for those persons affected by them.
Once the twelve case studies have been completed, work will begin on the part of the study referred to as the cross-site analysis. The results from all twelve case studies will be utilized to identify more specifically the causal mechanisms responsible for the effects that occurred. Of particular importance will be the establishment of the relative roles of site characteristics, project characteristics, and external forces in determining the consequences of constructing and operating a nuclear plant. The objective is to understand why effects occurred as they did and what was responsible for the significance they assumed. It Inust be remembered that twelve case studies is a very small sample and will not support rigorous statistical analysis of postulated causal relationships. At the same time, twelve comparable observations are more than have heretofore been available, and it is anticipated that the cross-site analysis will contribute substantially toward an understanding of why the socioeconomic effects occurred as they did and what determined the significance of the effects for the individuals affected by them.
The final component of the study will develop recommendations for methods to be applied in assessing the social and economic effects of proposed projects. The recom-mendations will be based on an evaluation of the relative success that various assessment methods would have had in anticipating the most significant effects of the twelve 2
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nuclear stations. Based on these results, methodological recommendations will be made, with an attempt to indicate the relative strengths and weaknesses of the alternatives.
i 1.1.3 Three Mile Island Since Three Mile Island was one of the case-study sites, the scope of the Post-Licensing Studies was expanded to include an analysis of the social and economic effects of the accident on the residents of south-central Pennsylvania. Because a reliable data
- base was necessary to support this effort, the NRC Telephone Survey of 1,500 households was conducted in late July (Flynn,1979). Since that time, an additional report was prepared. This report described the social and economic consequences of the accident during the six-month period from the end of March through September (Flynn and Chalmers,1980).
I Because of the unique circumstances surrounding the accident, the research at Three Mile Island will culminate in an individual report with two major parts. Part I will describe the pre-construction, construction, and operating experience of the station from late 1966 through 27 March 1979. This part will be based on the same methodology being 1
used at the other eleven nuclear station sites and will be directly comparable to those l I
case study reports. Part II will describe the t mergency and the post-emergency periods covering the period from 28 March through the summer of 1981.
In addition to the expanded effort at the Three Mile Island site itself, the accident will affect the Post-Licensing Studies in one other way. Each of the case study sites will i
be examined for consequences of the Three Mile Island accident. There are two possibili-ties: the accident may have directly affected social or economic conditions at other I sites, or the accident may have caused recognized effects to be evaluated in a different
- way and, therefore, to assume increased significance in the eyes of local residents. Both possibilities will be investigated.
1.2 Overview of the Case Study Organization As was explained above, the purposes of the individual case study reports are to describe the socioeconomic effects of the construction and operation of the nuclear station that were experienced by residents of the area being studied and to indicate the significance of those effects to the individuals and groups affected. Each report contains j ten chapters, the contents of which are summarized in Figure 1-2.
I 4
CHAPTNA Is INTRODUCTION 1r CitAPTER 2e OVERVItad AND DESCRIPT!Otl Or Tilt PkOJECT If CalAPTER 3 IDDdTIFICATION OF Tile STUDY ADEA eDescription of the Study pegion eDistribution of Workers, Purchases, and Tames eSelection of the Study Area t t t t
! CHAPTER 4 e CalAPTER Ss CalAPTER &a CHAPTLR 7e ErrLCTS 084 THE SWDV ASCA Eroe#0MY DEMOGRAPHIC EFFECTS IN 115E STUDY ASEA Eff ECTS De STUDY AREA EFFECTS ON STUDY AREA eEconunic History of the Study Area
- Demographic Trende
- eBackground M eBackground spacent Changes in the Econcuey specent Changes in the Population e tsplopent and incsme Ef fecto due ePopulation Effecto due to the Project e aMes in ettlement Patterne echanges in Coverrwnent and and Housing Selected Public Servicce to the Project
- Effecte on Settlement Patterne tEffects on Covernment and and lloueing due to the Project Pub!!c Services due to Propet 1
CitAPTER Ss ETFECTS Ort THE SOCIAL STRUCTURE I
IN tile SWDY AREA
~ ~ ~ ~ ~ ~
eBackground of Groups and Group
{
Interrelationahlpe ]
eDistribution cf Effects CILAPTER 9e
- Changes in Soc"la! Structure speeponse during Pre-Construction, Construction, and Operation eEffects of Socloeconomic Consequences CHAPTER ids in the Study Area on Public peeponse
SUMMARY
AND CuaCLUSICHS eEffecte of Public Desponse on Groupe eSummary of Socioeconomic Effecte in the Study Area
' of the Psoject FIGURE 1-2. Case Study Organization . Evaluation of the Effects by crouPe
- in the Study Area
- Significance of the Effects eOveral! Evaluation of the Project l
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Following this introduction, Chapter 2 describes the project with emphasis on those project characteristics that are important determinants of socioeconomic effects.
Chapter 3 then p-ovides a general description of the region in which the project is located, both as an orientation and as a prelude to selecting the smaller study area that will be intensively analyzed in the remainder of the case study. Actual selection of the study area relies on the spatial distribution of project consequences and on the geo-graphic extent of the major social, economic, and political systems that function in the vicinity of the plant. The consequences of the project that are examined in this context are the spatial distribution of the persons directly employed in constructing or operating the nuclear station, the distribution of direct purchases of goods or services made by the utility in order to build or operate the f acility, and the spatial distribution, by jurisdic-tion, of the tax payments from the utility due to the nuclear station. The study area is then defined with reference both to the spatial distributions of these major consequences of the project and to the spatial distribution of the functic,nal, social, economic, and political systems that operate in the vicinity of the station.
The next four chapters trace the effects of the plant on the study area economy, on the size and composition of the area's population, on housing and settlement patterns in the study area, and on government and the provision of public services in the study area. There are several organizing principles used to present this information. First, an attempt is made to describe conditions as they existed in the study area prior to the start of construction and as they changed from that time to the present. An explicit attempt is then made to identify that part of the change, or lack of change, due to construction and operation of the nuclear station. The temporal focus of the attribution of changes to the nuclear facility is on two points in time: the peak year of construction and a recent year during which the station was in full operation.
The second major organizing principle concerns the way in which effects are attributed to the nuclear station. There are two basic approaches to this problem. The first is to identify and control the effects of all other exogenous forces acting on the study area and, af ter their effects have been isolated, to attribute remaining effects to the nuclear station. The second approach is to make explicit causal arguments that directly tie postulated effects back to some known aspect of the construction or opera-tion of the station. Both approaches require use and acceptance of the same kinds of behavioral hypotheses. Using the first approach, it is necessary to define the direct and indirect effects of other exogenous forces acting on the study area so that the effects 6
- -= _-
due to the station can be determined as a residual. Using the second approach, the same kinds of hypotheses and behavioral relationships are used to directly argue the nature and extent of socioeconomic effects stemming from the construction and operation of the station. The rnost convincing case for attributing effects to the nuclear station results from use of both approaches-control of other exogenous influences and identification of direct causal links to the plant. Where possible, both approaches are pursued in the case studies. In general, however, the social and economic changes that have taken place in the areas examined in this study over the ten- to fifteen-year period of investigation are so complex that the second general approach is relied upon more heavily than the first.
Chapter 4 begins with a description of the jobs and income directly associated with the station and then establishes other employment, income, and labor force effects experienced in the study area. Chapter 5 works directly from these estimates of ,
ernployment change to examine effects on the size and composition of the study area's population, both from the in-migration of workers and their families and from reduced out-migration of local persons induced to remain in the area due to opportunities offered by the construction or operation of the station. Once population change due to the station has been established in Chapter 5, Chapter 6 examines the effects of the combined economic and demographic changes on housing and settlement patterns in the study area. The emphasis is principally on changes in the number, type, and spatial distribution of residences, although, where relevant, effects on patterns of commercial and industrial activity are also described.
Chapter 7 summarizes the major consequences of the station and its economic, demographic, and housing effects on the local government in the study area. It begins by 1 examining the major local jurisdictions in the study area for evidence of change in organ-i ization or structure due to the station. The effects on the revenues of local jurisdictions f are then described. Finally, there is a discussion of the comi.ined influence of changed j revenues and changed levels of demand for public services on the provision of services in the study area. It was decided that these effects could be shown most clearly by focusing on a smaller number of important services rather than by trying to examine the provision of all public services in the study area. The services chosen are education, ,
transportation, public safety, and social services. '
i l Chapters 4, 5, 6, and 7 proceed in sequence, therefore, to trace the economic, demographic, housing, and governmental implications of constructing and operating a l
7
nuclear station. The geographic focus is the study area defined in Chapter 3. The tem-poral focus is on the change from pre-construction to the construction peak and on the change from pre-construction to a recent year of full operation. Finally, the attribution of the effects to the nuclear station is achieved primarily through the establishment of direct causal relationships that are linked to effects directly associated with the station.
Chapter 8 examines the social structure of the study area and the ways in which it has been affected by the construction and operation of the nuclear station. The social structure is defined by the groups that exist in the area, their principal characteristics, and their social, political, and economic interrelationships. The chapter begins by identi-fying a set of functional groups into which the study area population is divided. A profile of each group is then developed. Each group is characterized in terms of livelihood, size, outstanding demographic characteristics, location, property ownership, values and atti-tudes, and patterns of intragroup interaction. The economic, political, and social interrelationships of the groups are then identified and described. An appreciation of these group characteristics and interrelationships helps to understand the way in which the effects of the project were evaluated and to explain group response to these effects. In addition, the characterization of groups and their interrelationships prior to the project serves as the basis for assessing the degree to which groups and social struc-l ture were altered as a consequence of the project.
The final step in the analysis of social structure is to determine the distribution of the economic, demographic, housing, and governmental effects of the station. The distribution of effects across groups provides explanatory information concerning the 1
changes in group structure and characteristics and provides data for interpreting and '
) understanding the group evaluations of the project.
l i
Chapter 8 is designed, therefore, to accomplish two very important objectives. I First, it makes operational the concept of social structure so that its constituent parts can be described and so that the effects of the construction and operation of the plant on social structure can be assessed. Second, the approach permits the examination of the effects of the plant on each group. The information on group characteristics and on the project effects accruing to each group provides the basis for determining the project's impact on the groups, discussed in Chapter 10.
8
4 Chapter 9 provides another perspective on the socioeconomic effects of constructing and operating the nuclear station by examining the public response to the project. The emergence and expression of public concerns and the issues that arose over j the plant during the three study periods-pre-construction, construction, and operations, including post-Three Mile Island-are described and assessed. The issues are described in terms of topic, time of occurrence, actors, positions, and resolution. Unlike the previous
- five chapters of the case study, which focused on the effects of the nuclear station within the study area defined in Chapter 3, the analysis of public response is regional in scope. The principal sources of information concerning public response are the local and I
regional press, transcripts of hearings, and key informants.
i l
The analysis of public response focuses on three questions: the extent to which the socioeconomic effects of the station on individuals and groups in the study area played a causal role in the public response to the project; the level of the direct participation of study area residents in publicly responding to the project; and the effects -
of the public response itself on the residents of the study area. The latter question involves the degree to which issues and confrontations that arose in the course of
, building and operating the nuclear station were responsible for changes in social or
! economic conditions within the study area. The strategy of Chapter 9, therefore, is to I identify public response to the nuclear project and then sort out the reciprocal causal i
links from local socioeconomic effects to public response and from public response to local socioeconomic effects.
The overall objectives of the individual case studies are to establish the socio-economic consequences of constructing and operating a nuclear power station on the residents of the local area in which a station is located and to provide a perspective on the significance of these effects to the people who experienced them. Chapter 10 will focus on the evaluation of the major socioeconomic consequences of the project by each group in the study area. The next step in Chapter 10 is to combine the information on group characteristics, effects, and group-specific evaluations to reach conclusions about the impacts and significance of the effects of the project. Absolutely large effects i combined with strong positive or negative evaluations would imply strong significance.
Similarly, absolutely small effects would tend to offset strong positive or negative evaluations, or indifferent evaluations could offset large effects and produce low levels 9
of significance. This process leads to a summary of the significance of the effects of the project.
I I
l l
]
I 10
CHAPTER 2: OVERVIEW AND DESCRIPTION OF THE PROJECT 2.1 Introduction Essential to every impact assessment is a description of the impacting agent. This chapter provides an overview of the Donald C. Cook Nuclear Plant and a description of the utility, the project site, and the project' characteristics that supports the more detailed discussions and analyses of the subsequent chapters and facilitates comparisons of the D. C. Cook plant with the other case studies.
2.2 Location The D. C. Cook Nuclear Plant, owned by the Indiana and Michigan Power Company (I&MP), is located in Berrien County, Michigan on the southeastern shore of Lake Michigan. As shown in Figure 2-1, the plant is about 11 miles southwest of Benton Harbor-St. Joseph, Michigan; 60 miles east of Chicago; 60 miles southwest of Kalamazoo, Michigan; and about 31 miles northwest of South Bend, Indiana. The project site is linked directly to the Chicago and Kalamazoo urban areas by Interstate Highway 94 G-94), to South Bend by United States Highways 31 and 33 (US-31 and US-33), and to Grand Rapids by Interstate Highway 196 (I-196) as well as I-94.
2.3 The Utility 2.3.1 Corporate Background The Indiana and Michigan Electric Company (I&ME), a wholly owned subsidiary of the holding company American Electric Power Corporation (AEP), was the applicant for the construction of the D.C. Cook Nuclear Plant. The principal executive offices of I&ME, which was formed in 1925, were located in Fort Wayne, Indiana; the headquarters l of AEP were in New York City. The Indiana and Michigan Power Company (I&MP), a l wholly owned subsidiary of I&ME, was formed in 1971 to obtain greater financing h flexibility for the construction of the nuclear plant. Ownership of the D.C. Cook Nuclear Plant (but not the associated transmission lines or the visitors' center) was transferred to I&MP in 1971. The headquarters of both I&ME and I&MP were located in Fort Wayne, Indiana.1 I
L I
To avoid confusion,I&MP is referred to as the owner of the D.C. Cook plant.
11
FIGURE 2-1. LOCATION OF D.C. COOK NUCLEAR PLANT 196 r
LAKE MIC HIG A N '
St. Joseph / I Benton Harbor k3b D.C. COOK ,
NUCLEAR PLANT 33
' 12 69
- Niles gg Chicago
'hgan City __
J IN i
ea,y- 94 so.. .en.
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! Fort Wayne R
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Along with the other six operating company subsidiaries of American Electric Power Corporation,I I&ME and I&MP formed a single, integrated power system. The American Electric Power Corporation, incorporated in New York in 1906 as the American Gas and Electric Company, had grown into one of the largest investor-owned utilities in the United States. It operated an integrated electric light and power system and planned the addition of generating stations on a system-wide basis. (AEC,1973:1-2; Moody's, 1977:38; I&ME,1967:3.) In addition to its operating electric subsidiaries, AEP owned or shared ownership of a number of generating companies, including I&MP, as well as seven coal companies and a railroad.
In 1979, D. C. Cook was the only nuclear power plant in the entire AEP system, although the construction of other nuclear generating facilities had been considered by the corporation (I&ME, personal communication, September 1979). AEP had been interested in nuclear power for some time prior to the decision to construct the D.C.
Cook plant. They had participated in early research efforts but, prior to the D.C. Cook project, had not been involved with any nuclear-fueled electrical generating facilities.
2.3.2 Service Area In 1967, AEP served approximately 1.5 million customers in a 41,000 square-mile area that included parts of eight states (Michigan, Indiana, Ohio, Pennsylvania, Kentucky, Virginia, West Virginia, and Tennessee). Indiana and Michigan Electric Company (I&ME) served the northwestern portion of the AEP system. In 1967, I&ME served 166 communities and about 340,000 customers in a 7,743 square-mile area of southwestern Michigan and northeastern Indiana, including all of Berrien County except the City of l Niles. By 1978, the number of customers served by I&ME had increased to approximately 440,000, while the service area remained unchanged. (I&ME,1967,1975, and 1978; Standard and Poors Corporation,1979; AEC,1973:X-4.) I&MP owned and operated the D.C. Cook Nuclear Plant and sold all the power generated by the plant to I&ME.
)
Although AEP was not a member of a formal power pool, it had high voltage interties with over twenty utilities in ten states. I&ME was a member of the East I
Appalachian Power Company, Kentucky Power Company, Kingsport Power Company, Michigan Gas & Electric Company, Ohio Power Company, and Wheeling Electric Company.
13
Central Area Reliability Coordination Agreement (ECAR), one of the nine regional groups of the National Electric Reliability Council (Moody's, 1977:38).
2.3.3 Generating Capacity and Production The D. C. Cook Nuclear Plant was the only generating facility of the Indiana and Michigan Power Company. It was one of seven generating stations of I&ME. In 1967, when the project was announced, the net generating capacity of I&ME was 1,979 Mw; that of the entire AEP system was 10,371 Mw. By 1975, when Unit 1 of the D.C. Cook station came on line, the generating capacity of I&ME was 2,547 Mw, about 14.5 percent of the entire AEP system capacity of 17,597 Mw. At this time, the D.C. Cook plant contributed 37.1 percent of the dependable generating capacity of I&ME. By December 1978, the end of the year that Unit 2 of the D.C. Cook plant came into commercial production, the AEP system capacity was 18,341 Mw, and the I&ME capacity was 3,986 Mw, of which the D.C. Cook plant contributed %,150 Mw. (Standard & Poors Corporation, 1979; AEC,1973:X-4; Moody's, 1977:41.) In 1978, Units 1 & 2 of the D.C. Cook plant generated 10.5 million MwH of electricity,100 percent of the electricity produced by the Indiana & Michigan Power Company, and 59 percent of the 17.8 million MwH produced by the Indiana and Michigan Electric Company system (I& MP, 1978:431-432; I&ME, 1978:431-432).
2.4 The Project 2.4.1 The Project Site Selection of the specific project site followed an AEP siting study conducted in 1954. The site selection was based on the availability of land, satisfactory topography and geology, adequate transport ation, adequate cooling water supply, satisfactory isolation, low population density, and minimal distance to existing transmission facilities. Five potential sites were studied, all in the vicinity of Benton Harbor-St. Joseph. Prior to purchasing the site, I&ME met with the AEC, discussed specific aspects of the alternative sites, and received a f avorable response to the data concerning '
the present plant site. (I&ME,1971b:2-10 (Supplement).) The site was acquired shortly af terward.
The property purchased for the site covered 650 acres and had a shoreline on Lake Michigan of 4,350 feet. The site was in Lake Township, Berrien County, about two miles north of the city of Bridgman and two miles southwest of the village of Stevensville. The dominant feature of the site was its location on the beach among the high, forested sand 14
dunes characteristic of the shoreline in Berrien County. The site was surrounded by tha highest series of stable, forested dunes along eastern Lake Michigan. Special efforts were taken to design and locate the plant to minimize its visual impact among the dunes (I&ME,1971; AEC,1973:1-4, II-42).
The land utilized for the site was privately owned before its purchase by AEP during 1955 and 1956. There were eight homes on the site, most of which were summer cottages. In addition to the 650-acre station site, additional land across Interstate 94 was purchased for use as a storage area for construction materials. Site acquisition costs were approximately $1.5 million. The site was rezoned as industrial; it was the only lake frontage in Lake Township zoned as industrial at the time construction began in 1969 (Hunter,1974; AEC,1973:II-5; I&ME,1971.)
2.4.2 The Plant The two-unit D.C. Cook Nuclear Plant had two Westinghouse pressurized-water reactors with net generating capacities of 1,050 Mw and 1,100 Mw, respectively. Due to the utilization of an innovative ice condensor system, the reactor buildings of the D.C.
Cook plant were lower than comparable conventional reactor buildings (162 feet compared to 212 feet) and smaller in diameter (122 feet compared to 150 feet). A turbine generator manufactured by General Electric Company was used for Unit 1; a Braun-Boveri (BBC) turbine generator was used for Unit 2.
The D.C. Cook station employed a once-through cooling system that circulated f water from Lake Michigan through the system at a maximum rate of about 1,645,000 l
) gallons per minute. At design load, the water flow of both units together was approximately 2,260 million gallons per day. There were no cooling towers on site.
(I&ME,1971; AEC,1973; AEP, personal communication,1979.)
The transmission lines and substations associated with the D.C. Cook r,tation were owned by the Indiana and Michigan Electric Company. The location of the plant required the construction of four transmission lines. Approximately five miles of 600-foot-wide off-site corridor was required for two parallel 345 kV lines. A corridor approximately 114 miles by 150 feet was required for another 345 kV line, and an additional corridor 35 miles long by 200 feet wide was needed for a 765 kV line. The transmission line rights-of-way (ROW) occupied approximately 3,300 acres of land and linked the plant to the existing Olive-Palisades powerline; to the Robinson Park substation in Fort Wayne, Indiana; and to the Dumont substation, also in Indiana.
15
_ s_. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - _ -
l The 345 kV lines had casements that allowed no buildings or other permanent obstructions within 85 feet of the center lines of the transmission lines. The 765 kV lines had a minimum easement of 100 feet from the center line with the same restrictions on buildings and permanent obstructions. (AEC, 1973:III 1-7; I&ME, 1971:5-17; Lake Township Planning Commission, 1979:28.)
The design, engineering, and construction supervision of the D.C. Cook plant were performed by AEP itself. J.A. Jones, Inc. was the general contractor.
2.5 Construction 2.5.1 Announcement The D. C. Cook project was announced on 20 July 1967 in St. Joseph, Michigan.
The announcement identified the proposed plant as a nuclear generating station and estimated that construction would start in 1969 and that the loading of the first fuel-unit would occur 30 months from the issuance of the construction permit, or at some time in 1971 or 1972. The initial estimate of construction costs for the two-unit plant was $300 million. No projections of construction work force size were given at that tirne. (AEP, nd.; Herald Palladium,20 July 1967; Hunter,1974.)
The announcement identified the Benton Harbor-St. Joseph area as one of the fastest growing areas in the AEP system. This growth and the need for additional generating capability in the northwest corner of the AEP system to provide geographic balance made additional generating capacity necessary, according to the announcement.
The rationale for the choice of fuel was that the site was distant from coal fields and was, thus, the most likely place for nuclear energy to be competitive with other energy sourc.es. In addition, AEP felt it advantageous to entar the nuclear power technology at that time. (AEP, nd.; Herald Palladium,20 July 1967; Hunter,1974.)
2.5.2 Schedule and Cost The construction permit for the D.C. Cook plant was issued in March 1969.
According to the schedule estimated at the time of announcement, Unit I was to be completed by September 1971. Instead, construction of Unit I continued through 1974, and commercial operation did not begin until August 1975, several years behind schedule. Unit 2 was even further delayed and did not come into commercial operation until July 1978. The total construction cost of the plant and the visitors' center was over three times the original estimate of $300 million. The cost and time overruns were attributed to normal con;.truction delays, modifications in regulatory requirements, I
16
. _ _ _ _ _ _ _ _ _ _ _ _ _ ______________________________x_
engineering and design modifications, financing contingencies, and labor problems.
Considerable engineering and construction difficulties were encountered with the unique ice-condensor system of the plant, which both delayed construction and raised costs.
The total cost of constructing the D.C. Cook Nuclear Plant was almost $1.04 billion. The principal components of this total. cost are shown in Table 2-1. These costs include the visitors' center and all ancillary facilities, such as the cofferdam and temporary harbor, but exclude the transmission lines.I (Henderson, 1979:28.)
2.5.3 Construction Phase Work Force and Earnings The construction of the two units of the D.C. Cook plant extended over a period of eleven years, from 1968 through 1978. Site preparation began in 1968. A revised schedule called for completion of Unit 1 in 1972 and of Unit 2 in 1973. The size of the on-site work force is shown in Figure 2-2 (based on the work force for the first week of each quarter). The work force expanded from 79 persons in late 1968 to 485 persons in late 1969, rose to about 3,000 persons in the third quarter of 1971, and peaked at almost 3,200 persons in the second quarter of 1972 after a major dip in the number of workers at the beginning of the year. The actual peak on-site work force, however, occurred in May 1972 with 3,517 workers. Due to decisions to delay completion of Unit 2, the number of workers declined through 1973, and, af ter a rise in 1974, plummeted dramatically in 1975 when Unit I was completed and work on Unit 2 was halted for a second time. The on-site work force dropped to 195 persons in June 1975. By January 1976, it had increased to 950 persons, rising to over 1,600 persons in late 1976. Following June 1977, tl e size of the work force dropped steadily as construction of Unit 2 neared completion. The peak construction year in terms of annual average daily work force was 1972, when an average of 2,377 workers were on-site. Table 2-2 shows the annual average daily work force on-site, the average annual earnings per worker, and total income earned at the project in constant 1972 dollars for the construction phase of the D.C. Cook project. (I&MP, personal communication, July 1979.)
1 The transmission lines and the visitors' center were owned and maintained by
{ I&ME, while the nuclear station and the switching yards were owned and operated by I&MP. Transmission lines and substations were estimated to cost about $8.3 million (I&ME, personal communication,1979).
t l 17 o - - - - --- -
TABLEZ-1 D.C. COOK NUCLEAR PLANT COSTS OF CONSTRUCTION" (Thousands of Current Dollars)
Construction Direct Outside Labor Supervision, Company and Equipment Engineering, Year Materials Labor Rental, Etc. and Overhead TOTAL 1968
& prior years $ 10,214 $ 69 $ 4,495 $ 554 $ 15,332 1969 23,513 355 16,895 2,298 43,061 1970 47,268 955 29,749 7,199 85,171 1971 89,830 1,562 67,287 17,203 175,882 1972 45,903 2,440 74,305 30,278 152,926 1973 13,592 3,154 55,203 36,832 108,781 1974 14,355 4,384 69,197 58,524 146,460 l 1975 11,480 2,436 30,992 42,658 87,566 1976 13,925 2,378 40,399 16,888 74,090 1977 5,098 2,905 52,755 29,924 90,682 1978 10,136 1,697 25,928 21,986 59,747 TOTAL $285,314 $22,835 $467,205 $264,344 $1,039,698 aIncludes the visitors' center but excludes transmission lines.
Source: E. Henderson, personal communication, August 1979. )
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TABLE 2-2 D.C. COOK NUCLEAR PLANT CONSTRUCTION WORK FORCE AVERAGE DAILY EMPLOYMENT, AVERAGE ANNUAL EARNINGS PER WORKER, and TOTAL YEARLY INCOME 1967 to 1978 Total Income" Average Daily Average Annual" Earned By Employment Earnings Per Workers on Year (Workers) Worker Construction 1967 0 0 0 1968 $ 88 $14,288 $1,257,344
~
1969 228 14,355 3,272,940 1970 914 15,255 13,943,070 1971 2,010 17,033 34,236,330 1972 2,377 17,933 42,626,741 1973 1,298 17,820 23,130,360 1974 1,827 16,875 30,830,625 1975 292 15,818 4,618,856 1976 1,228 16,943 20,806,004 1977 1,195 17,010 20,326,950 1978 314 116,448 5,164,602
" Constant 1972 dollars.
Source: Mountain West Research, Inc.,1980 (based on Union Agreements and Wage Rate Standards); I&ME, personal communication,1979; I&MP, Progress Report, 1967-1980.
20
.-- __ i
Construction of ths D. C. Cook station was unionized, and workers were hired through union locals in southern Michigan and northern Indiana. Shift work was kept to a minimum, and even during the peak period in 1972, the second shift never exceeded 500 workers. Over the entire construction period, the percentage of total hours that were worked as overtime averaged 5.45, 2.5.4 Construction Experience Construction of the D.C. Cook plant entailed removal of a substantial quantity of sand and the construction of a temporary harbor and cofferdam. Between 1965 and 1967, the dunes in the area of the construction site were removed. In July 1969, construction of the cofferdam was initiated, followed in July 1970 by construction of a temporary safe harbor, which was completed in September 1970. There was so.ne delay in 1969 associated with the safe harbor permit, which was not issued until 9 July 1970.
In 1972, difficulties with the design and installation of the ice condenser of the containment building caused some delays in construction progress (Hunter,1974; I&MP, personal communication,1979). These problems were compounded by shortages of skilled craftsmen, particularly welders. This caused some construction delay and resulted in the establishment of a welding school on site, as well as providing the initiative for obtaining special permission from the United States Department of Immigration and Naturalization for Canadian welders to enter and work at the site. A number of work stoppages occurred during the construction of the two units, due primarily to union disputes elsewhere, not with I&MP. The generally good labor record was attributed to the establishment of preconstruction conferences (which produced a no-strike, no-lockout agreement) and the continued meetings among I&MP, various contractors, and the unions, with I&MP taking the initiative to hold joint meetings with parties involved in a dispute.
(I&MP, personal communication, July 1979; I&MP, personal communication, September 1979; Carpenters Local 898, personal communication, July 1979; Sheet Metal Workers Local 164, personal communication, July 1979.) The delays required extension of the temporary harbor permit past its expiration date of 9 July 1973. This extension was opposed on the grounds that the harbor caused erosion of the beaches, which would be exacerbated by an extension of the permit. The hearing process that resulted caused some delay in the construction progress.
The construction schedule for Unit 2 was extended by a utility decision in 1973 to concentrate efforts on Unit 1 and to reduce construction efforts on Unit 2; the reduction
(
was followed by a suspension of construction on Unit 2 from November 1974 to July j 21
l 1975. This suspension was necersary due to severe economic pre::urco on tha utility from the economic conditions of 1974-1975 and the rapid increase in interest rates. As a result, Unit 2 was not completed until 1978 (AEP, nd.; Hunter,1974:8).
2.6 Operations 2.6.1 Schedule and Costs Unit 1 of the D.C. Cook plant started commercial operation on 23 August 1975.
Unit 2 came into commercial operation on 1 July 1978.
The annual cost of operating the two units of D.C. Cook is shown in Table 2-3. In 1978, the first year that both units were in commercial operation, annual operating costs exceeded $57 million.I Of this, labor accounted for $12.2 million; materials, equipment, and fuel, for $38.5 million; and other expenses (largely taxes), for about $6.8 million.
(I& MP, personal com munication, September 1979; I&ME, personal communication, September 1979; I&MP,1978:432a-4.)
2.6.2 Operations Phase Work Force and Earnings Although Unit I did not commence commercial operation until August 1975, operations personnel were first assigned to the D.C. Cook plant in 1969. Personnel requirements for plant operation increased continuously over the life of the project. It is difficult to assess trends in employment at the D.C. Cook station, however, since Unit 2 came into operation only in 1978 and nonroutine construction (more office buildings) and maintenance of the plant continued through 1979. Table 2-4 shows the average annual operations employment at the plant and the average earnings per worker in constant 1972 dollars. As can be seen from this table, regular I&MP personnel accounted for about 78.5 percent of the total operating work force of 442 in 1978; security personnel and the temporary refueling and repair personnel accounted for the remaining 21.5 percent. The refueling schedule for Unit I was about once a year, and for Unit 2, approximately once every eighteen months. Refueling of the two units was scheduled on a staggered basis to avoid removing both unita from production at the same time. As much as possible, maintenance and repairs were made during the refueling outage so that additional 1
These are costs only to I&MP and exclude I&ME costs associated with the D.C.
Cook plant. The tax payrnents are not included as part of onerating costs in the power production costs reported to the Federal Energy Regulatory Commission in the Annual Reports.
l 22
TABLE Z-3 D.C. COOK NUCLEAR PLANT ANNUAL COST OF OPERATION" Total Materials Power and Production Year Labor b Equipment C Fuel Other Expenses d
1975 1,339,376 174,335 12,164,853' 475,745 14,154,309 1976 5,280,461 1,401,229 19,354,652 2,340,675 28,377,017 1977 7,455,466 1,627,599 19,536,834 3,045,371 31,665,270 1978 12,193,891 2,993,552 35,498,535 6,777,530 57,463,508 f aExcludes I & ME costs.
b Labor is total value of labor, including contracted labor and payroll labor, but does not include visitors' center personnel, who are considered part of I&M Electric Co.
C Includes fuel attributed to the operation as material.
d Plant operation started in August.
' Includes all fuel even though about half was used for testing before Unit I was in commercial operation. It was not capitalized and is, therefore, included here.
I The total production expenses for the D.C. Cook plant for I&MP were reported as
$51,205,495 in the I&MP Annual Report to the Federal Energy Regulatory Commission, a figure which does not include tax payments.
Source: Dan Yount, Office Coordinator, I&M Power Company, personal communication, July 1979; I&MP, Annual Report of Indiana & Michigan Power Company, to the Federal Energy Regulatory Commission, prepared by AEP,31 December 1978.
i t
23
TABLE 2-4 D. C. COOK NUCLEAR PLANT OPERATIONS WORK FORCE AVERAGE ANNUAL EMPLOYMENT AND INCOME 1967 to 1978 Annual Average Daily Employment Total Average Maintenance / Annual Earnings Year Regular ^ Sec any Repairb TOTAL IncomeC per Worker c 1967 0 0 0 0 0 0 1968 0 0 0 0 0 0 1969 6 0 0 6 $ 41,952 $ 7,000 1970 24 0 0 24 289,368 12,057 g 1971 46 0 0 46 545,310 11,851 1972 68 80 0 148 1,792,932 12,114 1973 94 80 0 174 2,157,570 .12,400 1974 134 115 0 249 3,214,509 l12,909 1975 164 115 0 279 3,553,125 12,735 1976 215 87 20 322 1977 3,952,927 12,276 285 75 20 379 1978 4,676,805 12,340 347 75 20 442 4,992,221 11,295
" Full-time utility employees, based on data on total hired, adjusted by 1978 ratio between 1978 hired and annual _
average daily employment. 1976 is an anomaly.
Dull-time equivalents, based on interviews with the D. C. Cook outage coordinator,1980.
C Constant 1972 dollars.
Source: Mountain West Research, Inc.,1980.
shutdowns were averted. Consequently, considerable maintenance and repair activity usually occurred during the refueling period. Much of this work was performed by the I&MP operations and maintenance staff, who frequently worked overtime during outage periods.
Regular operations and maintenance personnel worked throughout the refueling period, supplemented by additional subcontractor employees. About 100 additional workers were usually required for about 65 days during these refueling / maintenance periods, but the size of the supplemental work force varied according to the nature of the maintenance / repair required. In 1978 the annual average wage of the supplemental workers was about 16,448 in constant 1972 dollars, the same as that of the construction workers. (I&MP, personal communications,1979 and 1980.) Total 1978 earnings by operation workers, including outage personnel, was $5.0 million (constant 1972 dollars).
2.6.3 Operating Phase Experience Because of its unique ice-condensor design, the operating permit issued for Unit 1 in 1974 limited operation to 81 percent of rated capacity to allow examination of data on operating characteristics prior to full-power licensing. This restriction was in force until March 1976, when Unit I was authorized to operate at 90 percent of full power. In May 1976, a full-power license was issued to Unit 1. Unit 2 received a full-power license in August 1978.
I Unit I was shut down between December 1976 and February 1977 for initial refueling and maintenance. In November and December 1977, Unit I was out of service for examination and replacement of electrical connections inside the containment vessel. In April 1978, Unit I was taken out of service for its second refueling and service. This outage was extended through most of June by the rebuilding of the Unit 1 steam generator.1 1
Additional refueling and repairs in 1979 included: the inspection and repair of cracks in the feed-water nozzles and testing of concrete-expansion anchor bolts between March and July, which shut down both units. Unit I was refueled during this outage. The first refueling of Unit 2 occurred in October-November 1979. An unscheduled shutdown of Unit I was required between 24 December 1979 and 17 January 1980 for inspection of piping supports. The expansion of the spent-fuel storage capacity took place in January-February 1980, but did not require a shutdown.
25
l The repair work performed at times other than those mentioned were of relatively short duration, utilized primarily permanent maintenance crews, and did not cause other than very temporary economic or demographic impacts on the area. (I&ME, personal communication, September 1979 and March 1980.)
Availability for Units 1 and 2 through 1978 was 73.6 and 77.2 percent, respectively (NRC, 1978). In 1978, the unit capacity factors were 68.7 for Unit I and 65.3 for Unit 2. The 1978 figures compare to an average for all United States nuclear-fueled commercial plants of 61.7 percent. (Nucler.mcs Week, 25 January 1979:18.)
2.7 Taxes The I&ME and I&MP started paying taxes on the D.C. Cook plant in 1969 As shown in Table 2-5, a combination of direct and indirect taxes was paid to various jurisdictions, principally the county, township, school district, and State of Michigan.
Local and state taxes paid on the D.C. Cook Nuclear Plant in 1978 totaled approximtely
$7.7 million.
2.8 Corporate / Community Programs 2.8.1 Emergency Planning A number of agreements were made between I&MP and local groups in the establishment of emergency plans for the D.C. Cook plant. Prior to 1979, emergency plans were established by both the State of Michigan and Berrien County, which included plans for response to emergencies at the D.C. Cook station. The Michigan State Police, the Michigan Department of Health, the Berrien County Sheriff's Department, and I&MP were party to these plans. I&MP made agreements with a number of local and state organizations to provide assistance as needed. These organizations included local hospitals, fire departments (in addition to the D.C. Cook fire truck and brigade), and the United States Coast Guard (I&MP, personal communication, September 1979). This plan was revised a number of times.
In September 1979, public meetings were held with I&MP, the NRC, and state and local government officials concerning the development of a new emergency plan, which included details for public evacuation. The new plan will conform with the administrative structure and comprehensive coverage of the NRC's post-Three Mile Island requirements. (I&ME, personal communications, September 1979 and April 1980.)
26
t
! TABLE Z-5 D.C. COOK NUCLEAR PLANT TAXES PAID BY INDIANA & MICHIGAN POWER COMPANY *
(Current Dollars) 1970 1971 1972 1973 '1974 1975 1976 1977 1978 1969 Local Taxes Local Property Tax County $1,502,114
$1,679 $26,280 $85,319 $252,546 $446,807 $628,502 $767,450 $1,127,198 $1,197,753 County Tax 88,314 i
136 2,051 6,659 18,621 32,944 46,341 56,586 83,111 -
County Building 27,689 82 1,026 2,997 7,448 13,178 15,061 18,391 27,011 28,702
- County Bridge County School 256 3,846 24,972 69,828 123,541 173,779 212,198 311,668 331,176 415,331 Special Education Intermediate 55,101 I'22 1,687 5,810 14,850 26,273 22,939 28,152 41,348 43,936 School Dist.
24,955 69,549 117,446 199,267 240,491 346,990 368,709 451,326 O Lake Michigan College 341 7,948 4,123 16,648 46,552 82,361 115,853 141,465 207,778 220,784 276,887 Lake Township 223 Operation Water System 179,572 240,350 477,890 485,725 609,152 1,973 6,055 15,049 23,354 28,455 35,330 50,389 53,126 61,364 Collection Fee 123 Bridgman School 9,392 150,482 438,267 1,025,361 1,492.624 1,464,265 1,752,290 2,415,632 2,547,626 2,798,778 Subtotal 12,354 199,416 611,682 1,519,804 2,358,528 2,874,034 3,492,703 5,089,015 5,365,551 6,197,742 [
i State Taxes Unemployment Insurance Tax 20,270 26,331 29,850 31,732 75,507 85,011 69,914 Franchise 98,470 148,054 203,193 271,716 1,872,556 - -
1 Intangible 14,523 16,596 17,317 11,309 22,356 - -
Sales Tax-Operations 694 12,374 26,691 58,979 '
Use Tax-Construction 181,012 465,200 313,537 225,116 108,482 147,691 86,823 40,892 25,968 Michigan Single Business 556,987 709,909 1,345,267 TOTAL LOCAL AND STATE TAXES $12,354 $380,428 $1,076,882 $1,966,604 $2,774,625 $3,232,876 $3,955,845 $7,715,618 $6,228,3 54 $7,697,870 a
Includes 10 percent additional to cover the visitors' center, the substation, and the transmission lines.
Source: I&ME, personal communication, July 1979.
i
2.8.2 Visitors' Center The Energy Information Center (Visitors' Center), located on a bluff overlooking the D.C. Cock plant and Lake Michigan, was owned and operated by I&ME. It served as the liaison between the community and the plant, which is relatively inaccessible to the public due to security requirements. It contained the public information and public relations offices. Various exhibits and information on energy and technology, including a multi-media program, were presented at the center. Facilities also included a canteen, a picnic pavilion, and an auditorium. Various public informational and educational programs were coordinated out of the center, and the facility itself was available for use by community groups for meetings and activities.
The center was considered one of the more significant tourist attractions in the area. Over 740,400 visitors signed the register between July 1970 and January 1979.
August was consistently the peak month, with more than 20,000 visitors recorded in August of 1971 and 1974. (I&ME, personal communication, July 1979.)
2.9 Chronology of Major Events The major milestones of the construction phase are shown in Table 2-6. The twelve-year period covers the time from the formal announcement of the project in 1967 to the commercial operation of Unit 2 in 1978.
28
TABLE 2-6 D.C. COOK NUCLEAR PLANT CHRONOLOGY OF MAJOR EVENTS Year Month ~ Day Event 1967 July 20 Donald C. Cook project is announced.
1967 December 20 Application for construction permit is filed with AEC.
1968 August Preliminary construction begins.
1968 December AEC Advisory Committee on Reactor Safe-guards formally approves plant for con-struction.
1969 February 13 Public hearings are held by AEC on con-struction permit request.
1969 March 25 Construction permits are issued for Units 1 & 2.
1971 February 1 Application for operating license is filed.
1972 March Construction work force peaks at nearly 3,600 workers.
1972 October 10 Request for extension of construction per-mit is filed.
1973 May 18 Construction permit extension is issued.
1973 September Public hearings are held by AEC on operat-ing permit request.
1974 October 25 Operating license (at 81% capacity) is issued for Unit 1.
1974 November Construction of Unit 2 is halted.
1975 July Construction of Unit 2 is resumed.
1975 August 23 Unit 1 begins commercial operation.
1977 December 23 Operating license for Unit 2 is issued.
1978 July 1 Unit 2 begins commercial operation.
Source: NUS,1978; AEC,1974; I&ME,1973; I&MP, personal communication, 1979; AEP, nd.
29
CHAPTER 3: DISTRIBUTION OF DIRECT PROJECT EFFECTS AND IDENTIFICATION OF THE STUDY AREA l
3.1 Introduction This chapter serves as a transition between the focus on the D.C. Cook nuclear power station itself and the focus on the socioeconomic effects caused by the project, l 1
presented in the remaining chapters. As such, it has two principal purposes. The first is I to describe the region near the D.C. Cook Nuclear Plant and the distribution of direct project effects-jobs, workers, purchases, and tax payments-within that region. The second is to identify the area in which the consequences of the direct project effects will be studied in detail.
The identification and selection of the study area is an important element in the overall case study taethodology. The minor civil divisions for municipal units) and counties in the region that received appreciable direct project effects were identified.
Based on a consideration of the relationships between these units, aggregates were formed, and the distribution of jobs, workers, purchases, and tax payments among those aggregate units was determined. The pattern of distribution of direct project effects and the demographic characteristics of the aggregate units were then examined to identify those where the greatest intensity of direct project effects had occurred.
Based on the intensity of direct project effects and the relationships among the aggregate units, alternative study areas were considered. One was then selected to serve as the unit for analysis of the economic, demographic, housing, governmental, and social structure effects of the D.C. Cook nuclear station.
3.2 The Region 3.2.1 Description of the Regien Three counties in southwestern Michigan-Berrien, Cass, and Van Buren-were examined and described in the D.C. Cook Nuclear Station Units 1 & 2: Preliminary Site Report (Branch,1979). Based on the findings of this initial study, Cass and Van Buren l counties were omitted from further specific examination, and the intensive study focused on Berrien County.
l 30
l l
i Berrien County, as shown in Figure 3-1, is located in the southwestern corner of Michigan, bounded on the west by Lake Michigan and on the south by Indiana. The D.C.
Cook site is on Lake Michigan, in Lake Township.
In 1960, the population of Berrien County was about 150,000 people, giving a population density of almost 260 persons per square mile in the county as a whole.
Almost 50 percent of the county population lived in areas defined'as urban. The county <
population increased to almost 164,000 in 1970, raising the population density to over 280 persons per square mile. Despite this increased population, in 1970 the percentage living in urban areas declined to 46.6 as residential development moved out of the cities (U.S.
Bureau of the Census, County & City Data Book,1978). In 1970, there were only four towns and cities of over 4,000 people in Berrien County-Benton Harbor (16,481), St.
Joseph (11,042), Buchanan (4,645), and Miles (12,988).
Historically, the economy of the Berrien County area has been based predominantly on agriculture. Timber, fruit, and dairy cattle were the primary products. With the First World War, manufacturing increased in importance, and employment in manufacturing (particularly of durable goods) grew, while that in agriculture and related activities slowly declined. (U.S. Department of Commerce, nd:82; Southwestern Michigan Regional Planning Commission,1978.) In 1970, the total number of wage and salary jobs in the county was over 64,000 (BEA, unpublished data computed by Mountain West Research, Inc.).
Figure 3-1 shows the major transportation links in Berrien County. The highway linkage to the major urban centers of Detroit, Kalamazoo, Grand Rapids, South Bend, and Chicago was important in the development of the manufacturing and trade. I-94 enters Berrien County from the northeast and runs south along the lake shore into Indiana.
Interstate 196 provides a direct link to South Haven and Grand Rapids, Michigan. U.S.
31/33 runs north-south through the county from Benton Harbor to Niles and into Indiana. These transportation routes and the Chesapeake and Ohio rail line, which run parallel to I-94, have influenced the location of manufacturing establishments within the county. In general, the northwestern portion of the county-Benton Harbor and St.
Joseph and their environs-is urbanized and industrialized. The southeastern portion of the county contains the other major urban area, Niles and Buchanan, in proximity to Elkhart and South Bend, Indiana. Together these cities have a high concentration of population and industrial activity.
l 31
FIGURE 3-1. STUDY REGION: BERRIEN COUNTY, MICHIGAN 0 1 2 3 4 5 6 96
===muc===cm Mile s 94 N
BENTON i Benton arbor, Y I 1
' I
Sub-County Area i HARBOR I OTHER St. Jos ph ,C AREA g 94
'ur NORTH BERRIEN (3
/
ST. JOSEPH b COUNTY st. .nsvill. N g
AREA I D. C. COOK ,---I
' O Eau clair.
NUCLEAR PLANT
- lBAR00Ag I
9! B rri n springs Bridgrnan l8'd I
^ ^ i BRIDGMAN-LAKE TOWNSHIP
_a __ t_________ ___-.
2 SOUTH BERRIEN 4 Buchanan c Niles COUNTY 12 32
Although manufacturing, trade, and service establishments are distributed throughout the county, particularly along I-94, the central and northeastern portions of the county have been less densely populated and more heavily agricultural. Along the lake shore, tourism and summer recreational activities are also prevalent.
3.2.2 Specification of Places within the Region Based on preliminary information regarding area characteristics and distribution of direct project effects, the individual municipal units in Berrien County were combined to form six aggregate units: Benton Harbor Area; the St. Joseph Area (St. Joseph, St.
Joseph Township, Stevensville, Lincoln Township, Royalton Township); Bridgman/ Lake Township; Baroda Area; the remainder of North Berrien County; and South Berrien County. Table 3-1 shows the population and the municipalities within each of these aggregate units. The geographic location of the six units is shown in Figure 3-1.
Benton Harbor Area This area encompasses two jurisdictional units, approximately equal in population. As shown in Table 3-1, the aggregate population in this area increased to almost 40,000 in 1960 and then declined to 35,515 in 1970. Once the commercial, industrial, and entertainment center of Berrien County, the Benton Harbor Area suffered a severe decline in the 1950-1960 period that persisted through the 1960s and 1970s. In the 1950s and 1960s, the area experienced a ruajor demographic shift as the black population increased dramatically, and large numbers of whites out-migrated to other communities. By the late 1960s, Benton Harbor City had become predominantly black (about 60 percent in Benton Harbor and 25 percent in Benton Township); confidence in the residential and commercial / industrial sectors had plummeted, causing a severe drop in the tax base; and unemployment and crime rates had soared. Nevertheless, major industrial and commercial establishments such as Whirlpool, Clark Equipment, and major shopping centers remained in this area through the decade of the 1970s, although there was a substantial shif t of activity from the city to the township, and the area remained the commercial and industrial center of northern Berrien County. (Driker, 1970; Southwestern Michigan Regional Planning Commission,1978; Herald Palladium,1970-1979.)
St. Joseph Area The St. Joseph Area included St. Joseph City and St. Joseph Township, Royalton Township with Shoreham Village, and Lincoln Township with Stevensville Village. The 33 1
TABLE 3-1 D. C. COOK NUCLEAR PLANT AGGREGATE UNITS IN BERRIEN COUNTY Berrien County: Population 1950-1960 1960-1970 Specified Place and Trends Percent Percent Municipal Unit Components 1950 1960 1970 Change Change Benton Harbor Area 33,940 39,050 35,515 15.1 -9.1 Benton Harbor Benton Township St. Joseph Area 17,072 25,379 34,833 48.7 37.3 St. Joseph St. Joseph Township Stevensville Village Lincoln Township Royalton Township Shoreham Village Bridgman/ Lake Township 2,429 3,470 3,767 42.9 8.6 Bridgman Lake Township Baroda Area 1,548 1,877 2,167 21.3 15.5 Baroda Township Baroda Village Other North Berrien County 22,277 26,151 34,849 17.4 33.3 Bainbridge Township Berrien Township Berrien Springs Village Coloma Coloma Township Eau Claire Village Hagar Township Oronoko Township Pipestone Township Sodus Township Watervliet i Watervliet Township (continued on next page) 34
l TABLE 3-1 (continued)
D. C. COOK NUCLEAR PLANT AGGREGATE UNITS IN BERRIEN COUNTY l 1
Berrien County: Poriulation 1950-1960 1960-1970 Specified Place and Trends Percent Percent Municipal Unit Components 1950 1960 1970 Change Change South Berrien County 37,245 49,938 52,809 34.1 5.7 Bertrand Township Buchanan Buchanan Township Chikaming Township Galien Township Galien Village Grand Beach Village Michiana Village New Buffalo New Buffalo Township Niles City Niles Township Three Oaks Township Three Oaks Village Weesau Township TOTAL BERRIEN COUNTY 115,702 149,865 164,940 29.5 9.4 Source: Southwestern Michigan Regional Planning Commission, 1978:58-60 (based on 1970 Census of Population).
35
- __m __
m
l aggregate population of this area increased steadily between 1950,1960, and 1970 when it reached 34,833. St. Joseph was the county seat of Berrien County and had long served as the cultural center of the " Twin Cities" areas. The decline of Benton Harbor has resulted in a transfer of economic activity out of Benton Harbor into St. Joseph City and St. Joseph Township (Southwestern Michigan Regional Planning Commission, 1976).
During the 1950s and 1960s, extensive and rapid residential growth occurred in the townships in this area. As a consequence, although the villages retained their size and distinctive village character, the townships grew quickly and were transformed from rural areas into relatively integrated suburban areas. The expansion of housing in the townships continued through the 1970s and extended as far south as the Baroda Area.
Despite the number of jurisdictional units involved, a large portion of the Lincoln Township /Royalton Township /St. Joseph residential areas was commonly identified as a single unit-South St. Joe. Residents of this area belonged to the St. Joseph or Lake Shore school district.
Bridgman and Lake Township Area The Bridgman/ Lake Township area had a population of 3,470 in 1960 and 3,767 in 1970. The economy and labor force in the area was well integrated with that of the region. The commercial sector was small compared to Benton Harbor /St. Joseph and was located primarily in Bridgman, but tourism and manufacturing activities were dispersed between the two municipal units. Most residents of the area belonged to the Bridgman school district. The D.C. Cook site was located in Lake Township.
Baroda Area Baroda Township, with Baroda village, had a population of 1,877 in 1960 and 2,167 in 1970. Although predominantly rural with an agricultural base, a scattered settlement pattern, and few commercial or industrial activities, the suburbanization spreading south from Lincoln Township in the 1960s and 1970s had reached Baroda Township. The labor force in the area was well integrated into the county economy. Most residents of the area belonged to the Lakeshore School District, and transportation routes encouraged links with Lincoln Township /St. Joseph and Niles.
The Remainder of North Berrien County This area, an aggregation of eight townships and four towns, had a population of 26,151 in 1960 and 34,849 in 1970. It was separated from the project site by the Benton Harbor, St. Joseph, and Bridgman/ Lake Township areas. The economy in the area was 36 I m o
representative of the county. Residents in this area belonged to a number of different school districts.
South Berrien County South Berrien County was an aggregate of eight townships and seven towns. This area had a population of 49,938 in 1960 and 62,809 in 1970 and included two of the largest cities in the county-Niles and Buchanan. This portion of the county tended to be more oriented toward Niles, South Bend, hiichigan City, or Elkhart, Indiana than toward Benton Harbor /St. Joseph. In addition to manufacturing and commercial activity, agriculture was important to the economy of the area.
3.3 Distribution of Direct Project Effects within the Region In this section, the distribution of the direct project effects-direct basic employment,I direct basic workers,2 utility purchases, and tax payments for the D.C.
Cook project-among the six aggregate units is described for the year of peak construction (1972) and an operating year (1978). The aggregate incidence of direct project effects and the pattern over time were principal components in the determination of the intensity of direct project effects and the identification of the study area.
3.3.1 Distribution of Direct Basic Employment by Place of Work,1972 and 1978 Since the project site and all direct project work were located in Lake Township, all direct basic employment occurred within the jurisdictional boundaries of the Bridgman/ Lake Township area in both 1972 and 1978. In 1972, the annual average daily employment at the project in Bridgman/ Lake Township was 2,525; in 1978, it was 756.
None of the other five aggregate units received any direct basic employment by place of work.
1 Direct basic employment is the employment on the project itself. In this discussion, the focus is on the location of the job employment by place of work. !
l 2
Direct basic workers are workers employed on the project itself. See Chapter 4 for more complete discussion.
37 n ~
)
l 3.3.2 Distribution of Direct Basic Workers,1972 and 1978 There was no survey of the work force at the D.C. Cook site to document the spatial distribution of the workers; however, utility records and interviews with the business agents of the union locals, real estate agents, and apartroent and motel managers enabled allocation of the workers to the six aggregate places for 1972 and 1978. These allocations are necessarily estimates, which are relatively less precise for the remainder of North Berrien County and South Berrien County than for the four other aggregate units, especially in 1972. In 1978, the availability of address lists for the utility and security personnel enhanced the precision of the worker allocation.
Table 3-2 shows the number of direct basic workers residing in each of the six aggregate units in Berrien County in 1972 and 1978. To enhance the discrimination of this allocation, the workers were divided into three categories: nonmovers-workers who l were residents of the place before construction began and who did not relocate; movers- )
workers who relocated into the area to work on the project; and daily long-distance commuters-workers who commuted daily from outside Berrien County.
As shown in Table 3-2, about 33 percent of the 2,525 direct basic workers I employed at the plant during 1972 commuted from outside Berrien County (daily long-distance commuters), about 30 percent were already residents in Berrien County (nonmovers), and about 37 percent were workers who had moved into Berrien County for work on the project (movers).
The 1978 residential location of the year-round operations work force was determined from personnel records of the utility and major subcontractors. In 1978, the j annual average daily work force totaled 756 workers-314 construction workers, 422 year-round operations workers, and an annual average of 20 periodic maintenance, refueling, and repair workers. The periodic workers-additional security personnel, refueling and maintenance workers, and craftsmen-included some nonmovers, movers, and commuters. The refueling, repair, and maintenance personnel who were movers tended to locate in a pattern similar to that of the construction workers, concentrating in the vicinity of the plant, especially in the Benton Harbor, St. Joseph, and 1
Included in these figures are the 148 operations workers on site in 1972.
38
- a
1 l
l l
TABLE 3-2
( D.C. COOK l DIRECT BASIC WORKERS, BY PLACE OF RESIDENCE 1972 and 1978 l l
l l
l b
l 1972 8 1978 Nonmovere C M overs Total Nonmovers Movers Total Percent Percent Percent Percent Percent Percent % of of of of of of of 1970 Total Total Total Total Total Total Total Area County
( Work Work Work Work Work Work Popula- Popula-Places d No. Force No. Force No. Force No. Force No. Force No. Force tion tion Benton Harbor Area 170 6.7 243 9.6 413 16.4 68 9.0 35 4.6 103 13.6 35,515 21.7 St. Joseph Area 154 6.1 410 16.2 564 22.3 105 13.9 203 26.9 258 34.1 34,833 21.1
> Bridgman-Lake Township 48 1.9 89 3.5 137 5.4 44 5.8 37 4.9 81 10.7 3,761 2.3 Baroda Area 16 0.6 46 1.8 62 2.5 15 2.0 13 1.7 28 3.7 2,167 I.3 Other North Berrien County 176 7.0 93 3.7 269 10.7 37 4.9 21 2.8 58 7.7 34,848 21.3 South Berrien County 189 7.5 49 1.9 238 9.4 59 7.8 19 2.5 78 10.3 52,809 32.2 Berrien County 753 29.8 930 36.8 1,683 66.7 128 43.4 278 36.8 606 80.2 163,940 100.0 Outside Berrien County (long distan to Commuters)ge Daily 842 33.3 - - 842 33.3 150 19.8 0 -
150 19.8 - -
- TOTAL 1,595 63.2 930 36.8 2,525 100.0 478 63.2 278 36.8 756 100,.0 - -
atacludes 2,377 construction and 148 operational personnel hiudes 314 construction and 422 operatl<ms workers and the 20 annual equivalent maintenance, refueling and repair workers.
C The majority of commuters were reported to be nonmovers, but a small (unspecified) number of workers were reported to have moved into South Bend and Kalamazoo for work on the project.
d Townships include all villages located within their boundaries.
Sources Mountain West Research, Inc., based on Berrien County Planning Commission,1978 (based on U.S. Census data);1& MP personnel records; business agents of talon locals; apartment managers, realtors, etc. j
)
I
Bridgeman/ Lake Township areas. (I&MP, personal communication, 1979 and 1980; Business agents for the major craf ts unions,1979).
3.3.3 Distribution of Utility Purchases,1972 and 1978 Although both the largest purchases and the greater proportion of all purchases for the construction and operation of the D.C. Cook plant were made outside Berrien County, the total value of purchases made in Berrien County was $3.3 million in 1972 and
$1.1 million (constant 1972 dollars) in 1978 (I-ME, personal communication,1979). Table 3-3 shows the distribution of purchases for the project made by the utility within Berrien County in 1972 and 1978. The utility emi,loyed a " buy-local" policy that was thought to have increased the volume of purchases made within Berrien County. The Benton Harbor Area and South Berrien County (particularly Niles) recorded the greatest value in materials purchases in both years.1 However, the volume of these transactions, $3.3 million and $1.1 million constant 1972 dollars in Berrien County in 1972 and 1978, respectively, was insignificant compared to the total trading activities in any of the places in the county and was too small to have resulted in an observable increase in employment or income in any of these places.2 Since the purchase of materials was not of consequence to the economy of any of the selected places (although it was important to some of the individual establishments that received this business), the purchase of materials receded as a criterion for study-area selection.
3.3.4 Distribution of Taxes,1972 and 1978 The utility paid taxes to a number of taxing bodies within Berrien County and to the State of Michigan starting in 1969. Table 3-4 shows the distribution of tax payments on the D.C. Cook plant to the places within Berrien County (in constant 1972 dollars). In 1972, total tax payments on the D.C. Cook plant were almost $2 million, of which over
$1 million went to jurisdictions within the Bridgman/ Lake Township area. By 1978, Bridgman/ Lake Township received nearly half of the $7.7 million (constant 1972 dollars) in taxes paid on the D.C. Cook facility. Much of this tax revenue was received by the 1
As seen in Table 2-1, 1972 was not the peak year for materials purchases; the value of materials purchased in 1970 and 1971 exceeded that of 1972.
2 It is estimated that purchases of approximately $100,000 in constant 1972 dollars would generate about one additional job. (Ronald Drake, personal communication,1980.)
40
_---------_______________m- a
TABLE 3-3 D.C. COOK NUCLEAR PLANT UTILITY PURCHASES FOR PLANT CONSTRUCTION AND OPERATION BY PLACE OF TRANSACTION IN BERRIEN COUNTY (Constant 1972 Dollars)
Value of Purchases Place" 1972 1978 Benton Harbor Area $1,488,181 $ 231,293 St. Joseph Area 559,407 208,586 Bridgman/ Lake Township 299,215 120,239 Baroda Area 1,020 3,229 Other North Berrien County 10,364 17,117 South Berrien County 954,259 578,152 TOTAL BERRIEN COUNTY $3,312,446 $1,058,616 aPlace identification based on zip code location of vendor. Major subcontractor transactions representing wage payments have been excluded, since they are accounted for in worker earnings.
Source: Mountain Vlest Research, based on computer accounting records of I&ME, personal communication, September 1979 l
41 E___________________________ . A -
1 l
TABLE 3-4 D.C. COOK NUCLEAR PLANT DISTRIBUTION OF TAX PAYMENTS 1972 and 1978 (Constant 1972 Dollars)
Place 1972 1978 Berrien County Benton Harbor Area - -
St. Joseph Area Bridgman/ Lake Township $1,086,962^ $2,492,469a Baroda Area - -
Other North Berrien County - -
South Berrien County Berrien County Itself 432,842 b 1,631,112 D Total Berrien County $1,519,804 $4,123,581 Total Outside of Berrien County $446,800c $998,089 C TOTAL $1,966,604 $5,121,670 aIncludes township, township operation, water system and collection fee, and Bridgman school tax.
hcludes county tax, county building, county bridge, county special education, intermediate school district, and Lake Michigan College taxes.
cIncludes state tmemployment insurance tax, state franchise and intangible taxes, sales tax (operations), use tax (construction), and the Michigan single-business tax.
Source: Henderson, I&ME, personal communication, September 1979.
42
___ - - - - - - - ^______________________--
Bridgman school district. Aside from the county itself, no other municipal unit in the region received tax payments from the station.
3.4 Selection of Study Area 3.4.1 Area Selected The Study Area selected for the D.C. Cook Case Study was Bridgman/ Lake Township. A map of this study area is shown in Figure 3-2.
3.4.2 Rationale Intensity of Direct Project Effects Table 3-5 summarizes the distribution of direct basic employment, direct basic utility purchases, and tax payments for the two years of focus,1972 and 1978. The direct basic employment was all located in Bridgman/ Lake Township in both years, adding 2,525 jobs in 1972 and 756 jobs in 1978 to the Mridgman/ Lake Township economy.
The number of direct basic workers residing in the different places varied widely. To facilitate examination of the concentration of direct project effects, the percentage of the direct basic workers in the county residing in each area and the percentage of total county population residing in each of the selected areas are presented in this table. As shown in Table 3-5, in 1972 the share of direct project workers residing in Bridgman/ Lake .
Township was 8.1 percent, 3.5 times greater than Bridgman/ Lake Township's 2.3 percent share of the county's population. This was the highest ratio of any of the six aggregate units and indicates that the highest intensity of direct basic employment and direct basic workers occurred in the Bridgman/ Lake Township area.
The Baroda Area had the second highest percentage-of-workers-to-percentage-of-population ratio,2.8. The St. Joseph Area had a ratio of 1.6, and the Benton Harbor Area had a ratio of 1.1. Essentially the same ranking resulted from a similar analysis of the 1978 worker distribution.
Purchases were considered in a similar manner. The Bridgman/ Lake Township area once again had the highest intensity, as indicated by the percentage-of-purchase value-to-percentage-of-population ratio, but the Benton Harbor Area was second. As indicated previously, however, the scale of material purchases was so small that this criterion was not considered particularly pertinent for Study Area selection.
43
FIGURE 3-2. D.C. COOK NUCLEAR PLANT STUDY AREA: BRIDGMAN-LAKE TOWNSHIP
/%* E o.c. cook . . .
NUCLEAR PLANT -
- ..$g o w
b*
_ /> /
] Nuclear Plant Site
/
Lemon Creek Rd.
6-/ Vh Lake St.
g, -
Shawnee Rd.
V' PR 8 m'At
$.W[rrhn I.
1,/ [
_. l .h sw . , ,
1 Par k -: .
Jh a
0 % 1 tw 2 Miles y Sour r - L.J a Townsl.ip Floririino Commission, 19 79, take To*r.shiL Sketch Development Flan.
44
TABLE 3-5 D.C. COOK NUCLEAR PLANT
SUMMARY
OF DIRECT PROJECT EFFECTS
- Direct Basic Direct Basic Purchases Tax Recaipts Total Employment Workers (Constant (Constant Population (Place of Work) (Place of Residence) 1972 Dollars) 1972 Dollars)
Place 1970 1972 1978 1972 1978 1972 1978 1972 1978 Berrien County Benton Ilarbor Area 35,515 - -
413 103 $1,488,181 $231,293 - -
(21.7) - -
(24.5) (17.0) (44.9) (21.8) - -
St. Joseph Area 34,883 - -
564 258 559,407 208,586 - -
(21.3) - -
(33.5) (42.6) (16.9) (19.7) - -
Bridgman/ Lake Township 3,761 2,525 736 137 81 299,215 120,239 $1,086,962 $2,492,469
@, (2.3) (100.0) (100.0) (8.1) (13.4) (9.0) (11.4) (71.5) (60.4)
Baroda Area 2,167 - -
62 28 1,020 3,229 - -
(1.3) - -
(3.7) (4.6) (0.0) (0.3) - -
Other North Berrien County 34,848 - -
269 58 10,364 17,117 - -
(21.3) - --
(16.0) (9.6) (0.3) (1.6) - -
South Berrien County 52,809 - - 238 78 954,259 578,152 - -
(32.2) -- -
(14.1) (12.9) (28.8) (54.6) - -
Total Berrien County b 163,940 2,525 736 1,683 606 $3,312,446 $1,058,616 $1,519,804 $4,123,581 (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)
Outside Berrien County - - - 842 150 - - $446,800 $998,089 TOTAL - 2,525 736 2,525 756 - - $1,966,604 $5,121,670
- Numbers in parentheses represent percentage of Berrien County total.
a Berrien County itself supplied tax receipts figures of $432,842 in 1972 and $1,631,112 in 1978.
Source: IIenderson,18tME, personal communication September 1979
It is cvid:nt from Table 3-5 that only Bridgman/ Lake Town: hip and Berrien County itself received substantial tax receipts from the D.C. Cook plant in either year.
Except through county disbursements, none of the other places received . tax payments from the project.
The Bridgman/ Lake Township area, therefore, received the highest aggregate intensity of direct project effects. None of the other five aggregate units had a comparable intensity of direct project effects. Therefore, the Bridgman/ Lake Township area was selected as the Study Area.
It will be shown in subsequent chapters, however, that the Study Area is similar to, and integrated with, the remainder of Berrien County. Thus, although the ultimate focus of the case study is on the social and economic effects of the D.C. Cook station on the residents of Bridgman/ Lake Township (the Study Area), these effects can best be understood by looking at the effects of the station for both the Study Area and for Berrien County as a whole. Based on this conclusion, the economic, demographic, and community facility and service analyses of Chapters 4, 5, 6, and 7 deal both with the Study Area proper and with the larger context (Berrien County). Chapters 8 and 10 then refocus on the Study Area proper in studying the effects of the project on social struc-ture and in summarizing the overall socioeconon.;c consequences of the project. Chapter 9, which examines the public response to the project, necessarily deals with a broader regional perspective and is similar in its geographic scope to Chapters 4 through 7.
i i I
l 46 l
l
CHAPTER 4: ECONOMY OF THE STUDY AREA 4.1 Introduction The purpose of this chapter is to identify and discuss the effects of the construction and operation of the D.C. Cook nuclear station on the economy of the Study Area and Berrien County. Emphasis is placed on changes in the local economies and in the employment, income, and labor force status of the populations. The analysis is important to the remainder of the case study. Changes in employment and income due to the project provide the primary cause for changes in population, which can then affect the availability and cost of services and the social structure and processes in the affected communities. In addition, they provide one of the important mechanisms by which perceptions of material well being are affected. Since the determination of project-related effects on employment and income are critical to these subsequent analyses, it is presented in some detail.
The analysis begins by providing an overview of the economic history of the Study Area. A more detailed examination is then made of changes that occurred in the economy of the Study Area from 1967, the year in which the project was announced, through 1978. The next sections of the chapter trace the effects of both the construction and the operation of the station. The analysis of the effects of plant construction is centered on 1972 (the peak construction year), and the analysis of the effects of plant operation focuses on 1978. An economic-base approach is utilized to analyze the basic and nonbasic employment and income that together constitute the total employment and income effects of the project.
4.2 Economic History of the Study Area l 4.2.1 Berrien County l
l The first permanent white settlers arrived in Berrien County in the early 1820s.
I The opening of the Erie Canal, the " Chicago Road," and the " Territorial Road" during this period provided steamboat and inland transportation to the area and imi.ortant trade links with the Detroit and Chicago trade centers. Agriculture was the major economic activity in the county, with grains and fruits constituting the major agricultural products.
By the early 1850s, the Michigan Central Railroad was completed to Chicago, providing another mode of transportation linking the area with Detroit and Chicago.
Saint Joseph became an established trade center with a busy shipping and railroad 47
wholesale business and a growing population. The economy of the area expanded as sawmills and gristmills developed along the railroad lines. Agriculture also expanded, and the area began to sepcialize in fruit production and flour milling.
By the 1870s, tourism had become an important industry in the county. Steamboat service was established between Chicago and Benton Harbor. By the turn of the century, a number of tourist attractions had developed in the area.
At about the turn of the century, manufacturing was established in Berrien County. Included among the first manufacturing firms were A.B. Morse, a publishing firm, Truscott Boat Company, Michigan Wood Pulp Company, and the Niles Steel Tank Company. Prior to World War H, several large manufacturers, principally Whirlpool and Clark, established themselves in Berrien County. Companies supporting the automobile industry and primary metal operations were attracted to the area by the availability of sand and water for casting.
Economic expansion and population growth accelerated af ter World War H.
Between 1940 and 1970, total employment in Berrien County almost doubled, rising frorn 32,267 in 1940 to 64,282 in 1970 (U.S. Department of Commerce, BEA,1975). The county's strategic location between Detroit and Chicago attracted industries in large numbers during and af ter the war. The expansion of existing companies during these decades was also quite rapid. Following 1940, the importance of agriculture as a major employer in the county declined sharply. However, agriculture continued to be an important component of Berrien County's economy through the 1970s; the value of agricultural products sold in Berrien County remained on the order of $30 million to $40 '
million per year, or between 3 and 4 percent of Michigan's agricultural receipts (Driker, 1969:2, based on MESC data).
At the time of the study, Berrien County's economy was structurally similar to '
that of the 1940s. Although almost twice as large, it was still largely characterized by the fruit industry, tourism, and a large manufacturing base. Employment by place of residence from 1940 to 1970, shown in Table 4-1, illustrates the sharp decline in agricultural employment (from 21.4 percent of the county residents in 1940 to 3.6 percent in 1970). At the same time, manufacturing employment increased from 34.7 percent to 42.9 percent. The percentage of residents employed in mining and construction remained relatively stable. The trade-finance-insurance-real estate (FIRE) 48 l
l TABLE 4-1 EMPLOYMENT BY PLACE OF RESIDENCE BERRIEN COUNTY, MICHIGAN 1940,1950,1960,1970 Percent of Total Percent of Change 1940- 1950- 1960-1940 1950 1960 1970 1940 1950 1960 1970 1950- 1960- 1970- l l
Total Employment 32,267 45,439 56,446 64,282 100.0 100.0 100.0 100.0 40.8 24.2 13.9 Agriculture 6,903 5,955 4,251 2,341 21.4 13.1 7.5 3.6 -13.7 -28.6 -44.9 Mining 34 25 49 97 0.1 0.1 0.1 0.2 -26.5 96.0 98.0 Construction 1,318 2,270 2,799 3,167 4.1 5.0 5.0 4.9 72.2 23.3 13.1 Manufacturing 11,207 18,265 24,228 27,550 34.7 40.2 42.9 42.9 63.0 32.6 13.7
$ TCPU 1,941 2,938 2,837 2,686 6.0 6.5 5.0 4.2 51.4 -3.4 -5.3 Trade (Wholesale and Retail) 4,7 24 7,459 9,561 11,612 14.6 16.4 16.9 18.1 57.9 28.2 21.5 FIRE 567 833 1,389 1,868 1.8 1.8 2.5 2.9 46.9 66.7 34.5 Services 4,966 6,708 10,040 13,302 15.4 14.8 17.8 20.7 35.1 49.7 32.5 Government 607 986 1,292 1,659 1.9 2.2 2.3 2.6 62.4 31.0 28.4 Source: U.S. Department of Commerce, Bureau of Economic Analysis,1975 Regional Employment By Industry, 1940-1970.
sector, the services sector, and the government sector each slightly increased their share of total employment, while TCPU (t r anspo r t a tion-c o m m uni c ation-public utilities)
I declined from 6.0 percent to 4.2 percent of total employment.
4.2.2 The Study Area: Bridgman and Lake Township Lake Township's first white settler arrived in 1834, followed shortly by others.
The large forests and available water power made lumber and sawmills the township's first commercial interests. The largest of these sawmills, Charlotteville Lumber Company, was established in 1856 by George Bridgman (an in-migrant from Massachusetts) and Charles and Warren Howe.
The Village of Charlotteville was formed near the present site of Bridgman. This early settlement included a company store, a boarding house, an Odd Fellows Lodge, a schoolhouse, and dwellings for some of the 70 employees of the lumber company. By 1860, the township had a population of 557.
The decade of the 1870s brought growth. A tannery was built, a village blacksmith and other merchants arrived, and the first fruit farm was established. During the 1870s, George Bridgman arranged to have the Chicago and West Michigan Lake Shore Railroad pass through the area, and platted a village east of Charlotteville called Bridgman. The town gradually absorbed neighboring Charlotteville.
The township and town grew slowly prior to World War I, but a period of postwar expansion included the addition of a movie theatre, a bank, a foundry, and a community newspaper in Bridgman. Bridgman became a city in 1949 Local industry in the Study Area expanded with increased war-time and post-war-time production to include, among others, Bridgman Casting Company, Weldun Tool and Engineering Company, the Hoover-Ugine Plant (now defunct), Gast Manufacturing, and the D.C. Cook Nuclear Plant. By ,
and large, however, the township, and even Bridgman City, maintained their rural, agricultural character, despite the high participation of area residents in wage and salary employment throughout the northwestern portion of the county and the integration of the local economy with that of the county as a whole.
4.3 Economic Changes during the Study Period Two perspectives are taken in the discussion of changes in the economy of the Study Area and Berrien County over the 1967 to 1978 period: (1) the level of economic 50
l activity occurring within the Study Area (as measured in terms of the jobs and income l
! generated at places of work within the Study Area or within Berrien County), and (2) the labor force a d income status of area residents.
4.3.1 Employment and Income In 1967, there were approximately 71,00'0 jobs in the Berrien County economy and 1,500 jobs in the Study Area economy. In both Berrien County and the Study Area, total employment by place of work fluctuated substantially between 1967 and 1978. Overall, total employment increased from 1967 to 1978, except for downturns in 1970-1971 and 1974-1975. Due to the large proportion of employment in manufacturing (approximately 40 percent of wage and salary workers)I and the predominance of the manufacturing of durable goods, the Berrien County and Study Area economies were sensitive to national recessions as evidenced by declining employment and increased unemployment during the 1971 and 1975 recessions.
4.3.1.1 Employment and Income in Berrien County As shown in Table 4-2, total employment in the Berrien County econorny increased from 70,935 jobs in 1967 to 77,099 jobs in 1978 (U.S. Department of Commerce, BEA, 1980). However, the increase was not consistent, rising and falling several times between 1967 and 1978.
During the study period (1967 to 1978), manufacturing. trade, services, and government were the major sectors of employment. Manufacturing was the single most 1
! tmportant employment sector. Agriculture, although less important than manufacturing in employment, played a disproportionately important role in the local residents' perception of the area's economy. Tourism also had a significant influence upon the structure and development of the local economy, especially in the trade and services sectors.
As shown in Table 4-2, the number of proprietors remained almost unchanged over the study period, constituting only about 10 percent of the total county employment.
The number of farm proprietors declined steadily from 3,099 in 1967 to 2,293 in 1978, !
1 hianufacturing accounted for between 40 and 50 percent of the Study Area economy in 1967 and 1978, but substantially less in 1972. ,
l 51
TAB 12 4-Z EMPLOYMENT BY PLACE OF WORK BY INDUSTRIAL SECTOR BERRIEN COUNTY, MICitIGAN 1967-1978 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 TOTAL EMPLOYMENT 70,935 71,771 73,937 72,335 71,865 75,980 78,103 77,Z41 71,813 72,881 75,382 77,099 Humber of Proprietors 7,629 7,478 7,481 7,300 7,263 7,096 7,0Z9 7,148 7,150 7,108 7,230 7,403 Farm Proprietore 3,099 3,005 1,911 Z,811 Z,711 2,642 2,509 2,407 Z,429 Z,390 2,358 2,293 Nonfarrn Proprietore 4,530 4,473 4,570 4,489 4,552 4,454 4,520 4,741 4,721 4,718 4,87 Z 5,110 WAGE 8: SALARY EMI'LOYMENT Agriculture
- 63,306 3,472 64,293 3,380 66,456 65,035 64,60Z 68,884 71,074 70,093 64,663 65,773 68,15Z 69,696 2,949 3,099 Z,878 Z,840 2,573 Z,53 2 1,993 2,163 Mining (D) (D)
Z,174 I,950 (D) 78 76 94 119 142 (D) (D) 17Z Construction 1,825 1,820 1,946 1,894 1,727 (D) 1,912 Z,033 Z,119 1,704 1,648 Z,264 2,203 Manufacturing TCPU 29,295 2,004 29,306 Z,143 30,862 Z,15Z Z8,485 27,740 30,728 31,467 29,281 25,037 24,393 25,886 25,944 2,126 2,244 Z,117 Z,116 Trade b 9,642 9,688 Z,136 1,959 Z,116 Z,315 Z,399 FIR E 1,407 1,419 10,317 1,512 10,667 10,956 11,654 12,352 12,309 12,345 12,606 12,675 13,083 1,536 1,559 1,617 1,643 1,68 Z 1,656 Servicee 7,715 8,378 8,356 8,812 1,677 Z,000 2,053 8,807 9,074 9,788 10,479 10,031 11,087 11,675 12,212 ui Government 7,6Z0 7,785 8,061 8,338 8,615 8,848 8,983 9,413 9,489 9,429 8,991 9,346
- Includes f arm, agricultural services, forestry, fleherles, and other wage and salary employment.
b
!ncludes wholesale and retall trade wage and salary employment.
(D): Not shown to evold disclosure of contidential datag included in totale.
Source:
Bureau of Economic Analysis, Regional Economic Informatlosi System, April 1980, unpublished data.
~
l reflecting a continuation of the historical trend. At the same time the number of nonfarm proprietors increased from 4,530 to 5,110. The net effect was that the total number of proprietors declined at a rate of only 0.3 percent per year from 1967 to 1978.
During the study period, wage and salary employment grew at an average annual rate of 0.9 percent, while total employment grew at 0.8 percent per year. Wage and salary employment increased to peaks of 66,456 jobs in 1969 and 71,074 in 1973. During the recession of 1974-1975, wage and salary employment declined to 64,663 jobs (in 1975), approximately equal to the level in 1971, the previous recession year. Following 1975, wage and salary employment increased rising to 69,696 jobs in 1978.
The manufacturing sector in Berrien County showed the greatest variation in employment during this period, increasing to a peak in 1973, except for mild downturns in 1970 and 1971, before declining sharply in 1975 and 1976. Between 1967 and 1978, the trade sector showed a fairly steady increase at an average annual growth rate of 2.8 percent, reflecting the importance of tourism to the area. Employment in the services sector increased during the study period, at a rate of 4.3 percent per year. Government employment increased at a steady pace-1.9 percent annually. The construction sector showed frequent variations during the study period, virtually paralleling the variations in manufacturing employment. The construction employment shown in the BEA data seems contradictory to the employment on the D.C. Cook plant and other construction projects known to be taking place during the time period. A more realistic picture of the construction sector is given in the Michigan Employment Security Commission data, which showed that wage and salary employment in construction increased from 2,900 jobs in 1970 to a peak of 4,500 jobs in 1972 before falling to 4,000 jobs in 1974 and 2,500 jobs in 1978 (MESC,1976; Verway, 1979:259).
Labor and proprietors' income by place of work followed the same pattern as the employment figures for the manufacturing, trade, services, and government sectors. As shown in Table 4-3, total labor and proprietors' income in Berrien County by place of work increased (in constant 1972 dollars) throughout the study period except for declines in 1970,1974, and 1975 due to the national recessions.
53
l TABLE 4-3 '
l D. C. COOK NUCLEAR PLANT l DERIVATION OF PERSONALINCOME BY PLACE OF RESIDENCE l BERRIEN COffNTY, MICHIGAN 1967-1978 (Thousands of Constant 1972 Dollars) 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 Total Labor and Proprietors
- Income by Place of Work $534,354 $554,678 $582,797 $666,275 $582,153 $645,495 $680,692 $652,601 $591,096 $594,070 $636,ZZ7 $657,5Z2 Less: Personal Contri-lI '
butions for Social Insurance by Place of
- , Work 19,269 20,709 23,385 22,345 23,539 26,551 32,497 32,148 30,168 29,745 31,335 32,429 Net Labor and Proprietors' Income by Place of Work 515,085 533,969 559,411 543,930 558,614 618,944 648,195 620,453 560,927 564,324 604,891 625,093
. I Plus: Residence Adjustment -3,348 -5,967 -11,772 -11,169 -13,379 -17,130 -16,987 -15,708 ' -11,984 -8,035 -9,769 -6,920 Net Labor and Proprietors' Income by Place of Resi-dence 511,737 528,002 547,640 532,761 545,235 601,814 631,Z09 604,745 548,943 556,289 595,122 618,173 Plus: Dividends, Interest and Rent 67,208 81,566 90,271 93,058 91,575 93,208 93,182 96,876 94,081 98,875 103,537 109,351 Plus: Transfer Payments 47,968 5Z,473 54,87Z 65,837 75,266 79,202 85,155 93,713 116,265 117,511 114,333 114,903 PersonalIncome by Place of Residence Per Capita Personal 626,913 662,041 692,783 691,656 712,076 774,224 809,546 795,334 759,289 772,675 812,992 842,426 i
Income 3,759 4,013 4,233 4,218 4,233 4,636 4,795 4,693 4,463 4,5Z4 4,779 5,036 Net Labor and Proprietors' Income by Place of Work per Employee 7,261 7,440 7,566 7,520 7,773 8,146 8,299 8,033 7,811 7,743 8,024 8,108 Source: -
April 1980). Mountain West Research, Inc.,1980 (based on unput,lished data from Bureau of Economic Analysis, Regional Eco ,
=
4.3.1.2 Employment and Income in the Study Area Information on the economy of the Study Area is much more limited and less precise than that available for Berrien County.I There were approximately 1,500 jobs in the Bridgman/ Lake Township area in 1967. This employment was distributed among the industrial sectors in a pattern similar to that of Berrien County, reflecting the integration of the Study Area economy into the. county.
As in Berrien County, wage and salary employment, particularly in the manufacturing sector, accounted for a high proportion of the employment in Bridgman/
Lake Township. In 1967, there were about 700 manufacturing sector jobs in the Study Area, between 45 and 50 percent of the county total. Most of this was in the manuf acture of durable goods. In 1967, employment in both the trade and services sectors accounted for between 10 and 15 percent of the 1,500 jobs, with the agriculture, government, and construction sectors each comprising between 3 and 5 percent of the total.
Although the manufacturing sector of the Study Area economy was adversely affected by the 1971 recession, employment in the Study Area rose to approximately 4,200 in 1972, an almost three-fold increase over the 1967 employment. This large increase was due primarily to the addition of over 2,500 jobs in the construction sector of the Study Area economy, which caused construction employment to increase from between 3 and 5 percent of total employment in 1967 to over 50 percent in 1972.
Employment in the manufacturing sector remained at about the 1967 level, as the Study Area manufacturers recovered from the recession and new establishments entered the area; however, 'due to the dramatic increase in total employment, the proportion of employment in manufacturing dropped sharply, falling from about 45 percent in 1967 to about 20 percent in 1972. Employment in trade and services increased in absolute numbers between 1967 and 1972, but not by enough to maintain the 10-15 percent share of 'be economy each sector held in 1967. The numbers employed in agriculture and
~
government were relatively unchanged between 1967 and 1972.
I Information on this section was developed by Mountain West Research from interviews with local business managers, examination of telephone directories, chamber of commerce information, and United States employment data referenced in the previous section.
55
No accurate information is available on actual employment by industrial sector in the Study Area between 1972 and 1977, but it is clear that the Study Area economy was drastically affected by the 1974-1975 recession, which caused cutbacks of up to 60 percent among Study Area tnanuf acturers and halted construction on the D. C. Cook nuclear station. By 1978, the Study Area economy had largely recovered from the 1975 recession, but the total number of jobs in the Study Area had declined to approximately 2,600,'a reduction in employment of about 1,600 jobs since 1972. The greatest reduction was in the construction sector, where employment in 1978 was between 350 and 400 jobs, over 2,100 fewer than it was in 1972. (Nevertheless, employ nent in the construction sector remained at about 15 percent of the total, well over its proportion in the county as a whole.) Manuf acturing employment in 1978 was about 1,100 jobs, about 42 percent of the total estirnated jobs in the Study Area. Employment in the government sector was about 130 jobs, approximately 5 percent of the Study Area total. Employment in the transportation, cotumunications, and public utilities sector (TCPU) was substantially increased in 1978, accounting for between 15 and 20 percent of total employment, much higher than the proportion in Berrien County as a whole. Agricultural employment in the Study Area was relatively unchanged in 1978, though perhaps slightly diminished. The remaining sectors accounted for approximately 650 jobs, or 25 percent of the employment in the Study Area.
In 1967, wage rates in the Study Area were comparable to those in Berrien County as a whole. By 1972, when employment in the construction sector played a significant role in the area's economy, earnings per worker in the Study Area were increased by the relatively high pay scale in the unionized construction sector. This effect was moderated, however, by the high proportion of Study Area and county jobs in the relatively well-paying durable goods manufacturing sector. The long-term dominance of the manufacturing sector and the integration of the Study Area economy with that of Berrien County as a whole appear to have prevented significant wage competition in the Study Area economy. An additional feature of the Study Area economy that contributed to its resilience was the existence of an agricultural sector, which though declining in absolute terms, continued to be important to the area's economy. A very high percentage of f arm families (up to 50 percent) also held off-f arm jobs-a response to the small farm size, high value crops, stability of the market for produce, and availablity of high wage industrial employment in the area. (Driker,1969.)
56
4.3.2 Labor Force The labor force status of the residents of Bridgman/ Lake Township and cf the county as a whole reflects the general economic forces operating on the local economy that were described in the previous section. The focus here, however, is not on economic activity per se, but on the employment / unemployment status of area residents.
4.3.2.1 Employment and Income of Berrien County Residents Berrien County had a labor force of about 70,000 persons in 1970, early in the construction of the D.C. Cook Nuclear Plant. The size of the labor force increased through 1973, as shown in Table 4-4, when it reaghed 75,500 persons. The reduction in the labor force to 75,000 persons in 1974, to 74,400 in 1975, and to 73,300 in 1976 is due primarily to the 1974-75 recession. In 1977 and 1978, the labor force in Berrien County increased to 75,900 persons and 74,200 persons, respectively (Verway,1979). The reduction in the labor force in the mid-1970s corresponded to the out-migration of whites of working age, resulting from the extraordinarily high unemployment rates in the county during this period.
In general, the size of the labor force followed those in the number of jobs in the Berrien County economy, although the labor force tended to contract more slowly than did employment during the recession periods of 1971 and 1974-1975. This lag in labor-force response resulted in the increased unemployment in 1971 and 1975 that is shown in Table 4-4. In 1970, approximately 4,000 Berrien County residents were unemployed, 5.7 percent of the labor force. This was below the Michigan rate, but above the United States rate. Between 1970 and 1972, unemployment in Berrien County increased by 500 persons, and the rate increased by 0.4 percentage points to 6.1 percent, still below Michigan rates but above the United States rates.
The sensitivity of the major employment sector in Berrien County to the state of the national economy was reflected in the marked fluctuation in unemployment rates during the 1970s. During the 1974-1975 recession, Berrien County had an average unemployment rate of 15.6 percent; Michigan had an unemployment rate of 12.5 percent, while the United States unemployment rate was 8.5 percent. Following 1975, Berrien County continued to have an unemployment rate well above that of the nation and the
! state for the rest of the decade. The number of unemployed persons in Berrien County l jumped from 5,500 in 1974 to 11,600 in 1975. Manufacturers in the area indicated that reductions in work force to 40 percent of normallevels were not unusual and that the l
l f 57
TABLE 4-4 D. C. COOK NUCLEAR PLANT LABOR FORCE, EMPLOYMENT AND UNEMPLOYMENT, AND LABOR FORCE PARTICIPATION BY PLACE OF RESIDE:lCE FOR BERRIEN COUNTY, STATE OF MICIIIG AN, AND THE UNITED STATES 1967-1978 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1967 Berrien Coimty NA NA NA 70.3 7 Z.0 74.0 75.5 75.0 74.4 73.3 75.9 74.2 Labor Force (000) 68.0 NA NA NA 66.3 67.1 69.5 71.0 69.5 62.8 64.9 69.0 Employment (000)
NA NA NA 4.0 4.9 4.5 4.5 5.5 11.6 8.4 6.9 6.2 Unemployment (000) 8.4 NA NA NA 5.7 6.8 6.1 6.0 7.3 15.6 11.5 9.1 Unemployment Rate 167.3 NA NA NA 163.9 164.3 167.0 168.8 169.5 170.1 170.8 170.1 Population (000)
Aggregate Labor Force 44.4 NA NA NA 42.9 43.8 44.3 44.7 44.Z 43.7 42.9 44.6 Participation Rate
- Michigan 3,705 3,808 3,883 3,901 3,999 4,,118 4,202
$ Labor force (000) 3,450 3,501 3,594 3,596 3,621 3,595 3,414 3,625 3,781 3,913 Employment (000) 3,296 3,350 3,449 3,356 3,345 3,445 3,587 154 151 145 Z41 277 260 ZZ1 288 487 374 337 289 Unemployment (000) 4.5 4.3 4.0 6.7 7.6 7.0 5.8 7.4 12.5 9.4 8.2 6.9 Unemployment Rate 9,189 8,630 8,696 8,781 8,895 8,966 9,040 9,075 9,117 9,111 9,113 9,148 Population (000)
Aggregate Labor Force 40.0 40.3 40.9 40.4 40.4 41.0 4 Z.0 42.6 4 Z.8 43.9 45.0 45.7 Participation Rate United States Labor Force (000) 77,347 78,737 80,734 82,715 84,113 86,542 88,714 91,011 92,613 94,773 97,401 130,420 Employment (000) 74,37Z 75,920 77,902 78,627 79,120 81,702 84,409 85,935 84,783 87,485 90,546 94,373 Z,817 2,83 Z 4,088 4,993 4,840 4,304 5,076 7,830 7,288 6,855 6,047 Unemployment (000) Z,97 5 6.0 3.8 3.6 3.5 4.9 5.9 5.6 4.9 5.6 8.5 7.7 7.0 Unemployment Rate Population (000) 197,374 199,31Z 201,306 203,810 206,206 208,322 269,846 211,371 213,023 214,675 Z16,383 Z 8,059 Aggregate Labor Force Participation Rate 39.2 39.5 40.1 40.6 40.8 41.5 42.3 43.1 43.5 44.1 45.0 46.1 NA: Not available.
" Labor Force / population x 100.
Source: David Verway,1979, Michigan Statistical Abstract.
Berrien County economy had not yet completely recovered from this plummet by 1978.
(Southwestern Michigan Regional Employment Commission,1978.)
Labor force participation in Berrien County had historically been high, well above both Michigan and United States levels in 1960 and 1970 for both males and females, as shown in Table 4-5. Male participation rates in Michigan and Berrien County did not change much during the decade of the 1960s although they declined slightly, from 80.0 percent to 79.7 percent. The participation rate for women in Berrien County increased more rapidly between 1960 and 1970-from 36.8 to 43.2 percent-than it did for women in the United States, but less rapidly than it did for women in Michigan.
Table 4-4 also showed a different measure of labor force participation for the 1970s-the percentage of total population in the labor force. In Berrien County, the percentage of the population in the labor force in 1970 was 42.9, above both the percentage in Michigan and the United States. In 1972, the Berrien County figure had increased to 44.3 percent, still higher than that of either Michigan or the United States.
Little additional change occurred in Berrien County, however, and by 1978, the labor force participation rate in Berrien County had risen to only 44.4 percent, while it had increased to 45.7 in Michigan and to 46.1 percent in the United States.
The dominance of manufacturing employment, the high skill levels, and the pay l
rates of local workers meant that the income and standard-of-living in Berrien County were traditionally high. In 1969, Berrien County had an incidence of poverty of 9.5 percent, below the United States average of 13.7 percent, but above the 7.3 percent rate of Michigan. The median family income in Berrien County in 1969 was $8,533, or 96.4 percent of the Michigan figure of $8,853, and 110.8 percent of the national median f amily income of $7,699. (U.S. Bureau of the Census,1970.) The average income of families in Berrien County was also influenced by the high labor force participation rates in Berrien County.
One measure of the standard-of-living is per capita income by place of residence (shown in Table 4-3 in constant 1972 dollars for the 1967 to 1978 period). This table shows the trend in average earnings of county residents, which was heavily mfluenced by income earned in the manufacturing sector. As in the case of employment in the county, the per capita income followed the work in the manufacturing sector and decreased as 59
TABLE 4-5 LABOR FORCE PARTICIPATION RATES BY SEX BERRIEN COUNTY, STATE OF MICHIGAN, AND UNITED STATES l 1960 and 1970 l
1960 8
1970 b Male Female Male Female Berrien County 80.0 36.8 79.7 43.2 State of Michigan 78.3 32.7 77.6 40.2 United States 77.4 34.5 72.9 39.6
" Percentage aged fourteen years and older.
b Percentage aged sixteen years and older.
Source: U.S. Department of Commerce, Bureau of the Census, Census of Population, Characteristics of the Population 1960, Tables 52, 83, 84; U.S. Department of Commerce, Bureau of the Census, Census of Population, Characteristics of the Population 1970, Tables 46,53,121.
1 h
I l
t 60 L .
that work declined, but the overall trend was for the per capita personal income of county residents to increase.
Another measure of income is the average income of workers, which is obtained l by dividing the total income by the number employed (see Table 4-3). Since the majority of jobs in Berrien County were held by county residents, the average income by place of work shows the same trends as per capita personal income by place of residence.
4.3.2.2 Employment andIncome of Study Area Residents Although no precise figures are available, the labor force in the Study Area in 1967 was about 1,500 persons. In 1972, it had risen to about 1,600. (U.S. Bureau of the Census, 5th Count Tapes). Manufacturing was the dominant employment sector in both 1967 and 1972. By 1978, the labor force in Bridgman and Lake Township had risen to about 1,900 persons. The increase in labor force (400 workers) was substantially less than the number of additional jobs located in the Study Area during this period (1,100 jobs),
reflecting the incidence of intercommunity commuting.
An analysis of employment security division data for 1976 and 1977 indicated that unemployment rates in the Study Area were consistently about two percentage points below county rates. Nevertheless, the employment of Study Area residents in the Berrien County economy and the character of the Study Area economy made the Study Area susceptible to economic down-swings, and the overall pattern of unemployment in the Study Area, if not the absolute figures, followed that of the county and Michigan.
The 1971 and 1975 recessions caused increased unemployment in the Study Area.
As with most of the economic indicators, few data are available concerning labor force participation rates in the Study Area. The 1970 Census data indicated that labor force participation rates in the Study Area were comparable to those in Berrien County as a whole (Bureau of the Census, 5th count tapes,1970).
Date from the P-26 series of the United States Census indicate that per capita income of Study Area residents was very similar to that of Berrien County residents during the years for which data are available (1969,1972,1974,1975). Consequently, the analysis of income characteristics of Berrien County residents discussed above appears applicable to the Study Area as well.
61
l 4.4 Economic Changes in the Study Area and Berrien County due to the Project This section analyzes the effect of the D.C. Cook nuclear station on the economic conditions in Bridgman/ Lake Township and Berrien County as a whole. As before, the analysis will address both the effect of the project on economic activity in the areas studied (i.e., on jobs and income on a place of work basis) and its effect on employment and income characteristics of the residents of the area.
The analysis utilizes an economic base approach whose premise is that the economic activities of the project-the employment at the D.C. Cook project, the purchases of materials for the project, and other market effects-cause additional economic activity in the Study Area. Supplemented with an input-output analysis to examine the effects of the utility purchases, the total effects of the project on employment and income in the Study Area are determined by quantifying the direct project activity and the additional nonproject activity it induced.
4.4.1 Estimation of Project-Related Employment and Income Effects The first step in the analysis is to describe the work force and the purchases of goods and services required to construct and operate the generating station. Persons directly employed in the construction or operation of the plant are called " direct" basic employees, and the income they earn is counted as " direct" basic income.
In addition to this direct employment and income, local income and employment can be caused by local purchase of goods and services for the construction and operation of the plant. If, for example, $1,000 of materials was purchased locally, some fraction of the purchase would accrue as income to labor. For materials produced locally, the ratio of locally-generated-income-to-total-purchases could be quite high. Materials produced elsewhere and only distributed locally would result in a lower ratio of income-to-purchases (the distributor's margin). Income and employment generated in this way are referred to as " indirect" basic income and employment.
A third group of income and employment effects is referred to as "other" basic income and employment. Included in this category are labor-market effects due to labor shortages, higher wages, or changes in activity that are a response to the favorable fiscal impacts of the station. Figure 4-1 summarizes the three major sources of change in basic income and employment: direct basic, indirect basic, and "other" basic.
62 o
f1GURE 4-1 b.5 TIM A110N OF FitOJEt.,T-H EL ATED EMPLOYMENT AND INCOME EFFi. CTS I Direct Baslc Employment
-Canstruction workers
-Operations workere l
In.llrect Basic Employment and laceme _ Total Basle Employ- _ Total due to Utility Purchases of Goode ment and incesse Projec t-and Services in the Study Area Related Ernployreens and Income a
Adjustment for C <--------- Transient 5:stus of Workere
. 1 r
- Other' Basle Employment and Effec tive Eruployment and Income Honbesic Income Effecta due to Labne-Market Seele Incorne Multipliere Employenent Effects. Tam-Related Effects.or Both -
and Income d
if 1
m*
e
A significant portion of the project-related basic income carned in the Study Area was earned by workers who lived outside the Study Area or who resided in the Study Area only during the workweek. As a result, less of this income was spent in the Study Area than if the income had been earned by area residents. To account for this, the total project-related basic income was adjusted to make each dollar equivalent in terms of its effect on the local economy. The resulting adjusted income total is referred to as ef fective basic income. For example, if one group of workers spent only 25 percent as much in the Study Area as local residents earning comparable incomes, only 25 percent of the totalincome of the group would be included in effective basic income.
' Nonbasic" income and employment is that which results when effective basic income is sp,ent and respent in the local economy. In general, the larger the economy, the smaller the income leakages due to imports and the larger the multiplier. The total employment and income effects of construction and operation of the nuclear station are obtained by summing the nonbasic and basic employment and income.
The method for estimating the nonbasic employment and income response to an increase in effective basic income is based on the Regional Interindustry Multiplier System (RIMS) developed by Ronald Drake (for the Regional Economic Analysis Division of the U.S. Department of Commerce, Bureau of Economic Analysis). The RIMS approach is well documented elsewhere (U.S. Water Resources Council,1977; Anderson, 1980) and, therefore, is not described in detail here.I I In general, the RIMS technique develops industry-specific input-output types of multipliers based on national interindustry relationships at the 496-sector level of disaggregation, adjusted to reflect the availability of required inputs from suppliers in the county. In the simplest case, if an industry does not exist in the county economy, any r-quirements from that industry are assumed to be supplied by imports from outside the county economy. If an industry does exist in the county at the same, or greater, proportion to the county economy as the industry is to the national economy, the county demands from that industry are assumed to be met within the county economy. If an industry represents a smaller proportion of the county economy than it did of the I national economy, some of the county demand is assumed to be supplied from in the county and some is assumed to be imported.
64
4.4.1.1 Employment andIncome Effects of the Project in 1972 Direct basic employment and income effects of the project in 1972 The first of the three components of total project-related basic income and cmployment is direct basic income and employment. The direct basic employment in the Study Area due to the project is comprised of the jobs and workers involved directly in the construction or operation of the plant. The wages earned by direct basic employees constitute the direct basic income due to the project. Direct basic income and cmployment can be counted either at the place of work, to show the number of jobs and amount of income generated by the project and their effect on the economy of the area, or at the place of residence of the workers to show the number of residents of the area employed at the project, their income, and the effect on the residents of the area. In this study, the determination of direct basic income and direct basic employment at place of work is straightforward and is derived from project employment and wage data.
The D.C. Cook plant is located in Lake Township, Berrien County. Consequently, in terrns of employment and income by place of work, all direct basic employment and income from the project (2,525 jobs in 1972)I accrued to the Study Area and Berrien County economies, as did the $44.4 million of direct basic income generated by the project.
Determination of the direct basic income and employment at place of residence in the Study Area requires that information about the residential location of the direct basic employees be known. This information was obtained through extensive interviews with union officials, utility personnel, and area realtors, as well as examination of utility records regarding employee addresses. The income of direct basic employees is an important factor in the analysis since it contributes to the generation of nonbasic employment and income. Not all of the direct basic employees resided in the Study Area or Berrien County. In 1972, approximately 137 direct basic employees, earning $2.4 million in income from the project, were residents of the Study Area and 1,683 dire'ct basic employees, earning $29.6 million, were residents of Berrien County.
1 Annual average daily employment.
65 I
a Indirect basic employment and income effects of the project in 1972 The second component of total project-related basic income and employment is the indirect basic, here designated as the profits, earnings, and employment that result from the purchase of goods and additional services by the utility for plant construction and operation. The amount of indirect income produced by a given value of purchases is determined by the ratio of indirect income to. product value, which varies according to the type of goods and type of establishment involved in the transaction. The indirect basic income and employment in the Study Area due to the project is calculated in this study by applying the income-and-employment-to-value-of-purchases ratio derived from the Regional Industrial Multiplier System (RIMS)I to the total value of materials purchased by the utility in the Study Area and in Berrien County.
In 1972, the value of the goods and materials purchased by the utility was $299 thousand in the Study Area and $3,312.4 thousand in Berrien County (I&ME, personal communication,1979).2 Based on the ratios of indirect-basic-employment-and-income-to-value-of-purchases derived from RIMS,3 these purchases resulted in about 3 indirect basic jobs and $26.8 thousand of indirect basic income earned in the Study Area, and 39 indirect basic jobs and $297.2 thousand in indirect basic income earned in Berrien County. All 3 indirect basic jobs were estimated to have been filled by residents of the Study Area, so the $26.8 thousand was earned by area residents. Of the 39 indirect basic jobs in Berrien County, 37 were assumed to be filled by county residents, who earned
$282 thousand. The remaining 2 jobs and $15.2 thousand in earnings were assumed to go to commuters who lived outside the county.
i "Other" basic employment and income effects of the project in 1972 The third component of the project's basic income and employment effects are here categorized as "other" basic income and employment. In 1972, the D.C. Cook site 1
For county specific data.
2 In estimating the indirect basic employment and income effects of the utility purchases in the study area and the county, these purchases were assumed to have been made in the wholesale trade sector. I&ME computerized records of purchases were analyzed to provide these data.
3
$1.0 million of utility purchases gave $89,710 in indirect basic income and 11.64 indirect basic jobs.
l t
66
was within easy commuting distance of a labor force of well over 70,000 persons, many of whom were employed in unionized jobs (Verway, 1979; Southwestern Michigan Regional Planning Commission,1978). Consequently, it is considered unlikely that the project caused noticeable wage-induced effects in the Study Area even though the area had a strong agricultural component, usually considered the sector most vulnerable to such effects. Interviews with the ten largest employers in the vicinity of the project, with the county agricultural extension agent, and with residents of the Study Area involved in agriculture revealed no indication of wage-induced "other" basic effects.
From the beginning of the project, it was clear that the D.C. Cook plant would have a major effect on the assessed valuation of Lake Township and the Bridgman School District and, consequently, on the tax rates and the services that could be provided in the Study Area. These two induced effects of the Cook plant, discussed in detail in Chapter 7, had ramifications on the site-selection decisions of two industries, Weldun Manufacturing and Hoover-Ugine, which chose to locate in the Study Area during the early phase of the project. In neither case, however, was the selection of site wholly based upon the project induced effects--lower tax rates in one case and lower tax rates and provision of municipal water service in the other. Although it was difficult to determine precisely, interviews with representatives of Weldun Manufacturing and examination of the location or expansion of industry in the Study Area indicated that the project-related effects were not the deciding or critical factors for the decision of Weldun to locate in Bridgman.1 Therefore, the approximately 200 jobs created in the Study Area by the operation of the Weldun Company were not attributed to the project although it is apparent that the project did play some role in Weldun's siting decision.
The Hoover-Ugine project is more problematic: the company made the decision to locate in Lake Township in the late 1960s and built its experimental wire manufacturing plant in Lake Township between 1972 and 1973. Due to technical difficulties with its manufacturing process, the project never reached full production and was shut down in 1977. The entire plant was lost to fire that same year.
1 0ther considerations cited were: proximity to and centrality in their labor market, access to I-94, favorable site-purchase opportunities, and familiarity with the local area (Weldun, personal communication,1979).
67
According to available information,I municipal water was a principal concern of the siting committee of Hoover-Ugine, and the decision to locate in Lake Township was contingent upon a guarantee that the township would construct and operate a water system that would serve the plant. This guarantee was made; Hoover-Ugine did locate in Lake Township and did receive water from the Lake Township water system (Shuler, personal communication,1979). Since (as dischssed in Chapter 7) Lake Township would probably not have built its water system (especially when it did) without the tax revenues from the D.C. Ccok project, the location of the Hoover-Ugine plant in the Study Area was to some extent due to the Cook plant.3 However, since property was available in the Study Area in areas already served by municipal water, it is not clear that the Hoover-Ugine plant would not have located in the Study Area even without the facility changes that were linked to the D.C. Cook project. Therefore, the 250 jobs created in the Study Area between 1972 and 1977 by the siting of the Hoover-Ugine plant are also not attributed to the Cook project as "other" basic employment.
The Study Area received a substantial proportion of its resenues from the project. In 1972, the station represented about 79.7 percent of the total assessable base of Lake Township and 67.8 percent of the total assessable base of the Study Area (Berrien County Tax Equalization Office, annual series). The additional revenues received from this large supplement to the tax base of the local governments could have resulted in "other" basic employment in the Study Area by inducing expansion of local government employment. Because of the snultiplier effect of basic income, this "other" basic employment needs to be distinguished from the nonbasic government employment and income caused by the project.
1None of those persons instrumental in the siting decision made by Hoover-Ugine were available for interview at the time of the study, so the analysis is based on information provided by secondary sources, by other business managers in the area, and by the supervisor of Lake Township.
2 0ther f actors included favorable rail transportation rates.
3 Conversely, there are indications that the Township would not have built the i
water system when it did without the incentive of the Hoover-Ugine project. (Shuler, i personal communication,1979).
68
In 1972, the Study Area received $1,087 thousand in taxes from the D.C. Cook project-$61.6 thousand to Lake Township and $1,025.4 thousand to the Bridgman school system. As discussed more completely in Chapter 7, by 1972 these revenues do not appear to have resulted in substantial "other" basic employment or income in the governments of either the Study Area or Berrien County.
Total "other" basic employment and income in 1972 was, therefore, estimated to be zero in both the Study Area and in Berrien County.
Total basic employment and income effects of the project in 1972 Total basic employment and income is the sum of the three basic components-direct basic, indirect basic, and "other" basic. As shown in Table 4-6, the total number of basic jobs added to the Study Area economy by the D.C. Cook project-basic employment by place of work-was 2,528 in 1972. These jobs generated basic income of
$44.4 million. In the Berrien County economy, 2,564 basic jobs and $44.7 million in basic income were created by the project.
Many of these jobs, however, were filled by workers who lived outside the Study Area and Berrien County. In 1972,137 project-related basic employees, earning $2.4 million, were residents of the Study Area, and 1,683, earning $29.9 million, were residents of Berrien County.1 Nonbasic employment and income due to the project in 1972 Nonbasic employment and income, the final component of project-related employment and income effects, result from the expenditure (and re-expenditure) of basic income in the local economy. The amount of nonbasic employment and income caused by the project in the local economy is determined primarily by the interaction of two factors: (1) the amount of " effective" basic income created by the project, and (2) the size of the nonbasic-to-basic employment and income multipliers in the local economy.
1 These numbers were estimated as a proportion of the total direct basic workforce based on the sources listed in the text. Because they form the basis of a series of caleAttons (whose sum must total 100 percent) they have not been rounded off. It shouli h noted, however, that they are estimates.
69 i_ , _ _ _ _ _ _ _
a
TABLE 4-6 D C. COOK NUCLEAR PLANT TOTAL PROJECT-RELATED BASIC EMPLOYMENT AND INCOME STUDY AREA AND BERRIEN COUNTY" 1972 Basic Employment Basic Income b Direct Indirect "Other" TOTAL Direct Indirect "Other" TOTAL STUDY AREA By Place of Work 2,525 3 0 2,528 $44,419.8 $26.8 0 $44,446.8 (Number of Jobs)
By Place of Residence 137 3 0 140 2,410.1 26.8 0 2,437.1
$ (Number of Resident Workers)
BERRIEN COUNTY By Place of Work 2,525 39 0 2,564 44,419.8 297.2 0 44,717.0 (Number of Jobs)
By Place of Residence (Number (of Resident Workers) 1,683 37 0 1,720 29,607.3 282.0 0 29,889.3
" Totals may not add exactly due to rounding.
b Thousands of 1972 constant dollars.
- - - _- , J
Effective basic income. An unusually high proportion of the project-related basic income in ooth Berrien County and the Study Area was earned by workers who were transient residents or who lived outside the Study Area /Berrien County. These workers, therefore, spent a smaller proportion of their income in the Study Area /Berrien County economics than did those who lived in the Study Area /Berrien County full time, and reduced the effect of the project-related basic income on the local economies. To account for this, the total project-related basic income earned in the Study Area and Berrien County was adjusted to make each dollar of project-related basic income equivalent by full-time residents in its effect on the economies of the Study Area /Berrien County. Two principal factors influenced the amount of effective basic income resulting from the project-the residential location of the workers earning the basic income and the incidence of outside financial commitments, such as for the maintenance of a household. The effects of these factors were analyzed by dividing the project-related basic workers into four groups:
- 1. Nonmovers-employees who resided in the Study Area prior to their employment on the project and who did not move because of . this employment;
- 2. Movers accompanied by families-employees who moved into the Study Area because of their employment on the project and were accompanied by families;
! 3. Movers unaccompanied by families-employees who moved into the Study Area because of their employment on the project and were not accompanied by families (including single employees); and
- 4. Daily long-distance commuters-employees who lived cutside the Study Area but commuted daily into the Study Area to work at the project.
An adjustment for the basic income earned by each group was then made individually.
Table 4-7 shows the distribution of project-related basic employees and basic income among these four groups for the Study Area and Berrien County. In 1972, only about 6 percent of the 2,528 project-related basic jobs in the Study Area were held by f workers residing there. Substantially more, about 67 percent, of the 2,564 project-related basic jobs in Berrien County were held by residents of the county.
Based on information about residential location and outside financial commitments, interviews with workers in different groups, and examination of the cost and availability of goods and services in the local economy, the basic income of each group was weighted to reflect the average proportion of earnings spent in the local 71
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ w
TAT 2LE 4-7 D. C. COOK NUCLEAR PLANT DISTRIBUTION OF PROJECT-RELATED BASIC EMPLOYMENT AND INCOME STUDY AREA AND BERRIEN COUNTYa 1972 Total Basic Employment Total Basic Earnings b Dhect Indirect Indirect Basic Indiregt Basic TOTAL Basic C Basic TOTAL
> STUDY AREA Nonmovers 48 3 51 $ 844.4 $ 26.8 $ 871.2 Movers Accompanied by Family 36 -
36 633.3 -
633.3 Movers Unaccompanied by Family 53 -
53 932.4 Daily Outside 932.4 y Commuters 2,388 -
2,388 42,009.7 -
42,009.7 TOTAL 2,525 3 2,528 $44,419.8 * $26.8 $44,446.8 BERRIEN COUNTY Nonmovers 753 35 788 $13,246.8 $266.7 $13,513.5 Movers Accompanied by Family 465 2 467 8,180.3 Movers Unaccompanied 15.2 8,195.3 by Family 465 -
465 8,180.3 Daily Outside 8,180.3 Commuters 842 844 14,812.5 2_ 15.2 14,827.7 TOTAL 2,525 39 2,564 $44,419.8 $297.2 $44,717.0 "Since no "other" basic employment or income was identified, these components were eliminated from the table.
Totals may not add exactly due to rounding.
b Thousands of 1972 dollars.
c Based on average annual earnings of $17,592.
d on actualBased on of average average 7.707).annual earnings of $8,933 in the Study Area and $7,621 in Berrien County (due to rounding effect Source: Mountain West Research, Inc.,1980.
economy by members of the group and their households as compared to the proportion spent by the nonmovers. In both Berrien County and the Study Area, nonmovers served as the standard-all of their income was considered " effective" in the local economy, so their income was weighted by a factor of 1.0. In Berrien County, as shown in Table 4-8, the proportion of income spent by movers accompanied by families was estimated to be the same as that spent by nonmovers. Their income was, therefore, also weighted by a factor of 1.0. Movers unaccompanied by families were estimated to have spent only about 40 percent as much in Berrien County as did nonmovers because of outside financial obligations to absent family members and the transient nature of their stay in the county. The $8,180.3 thousand earned by the group was, therefore, weighted by a factor of only 0.4 in the calculation of total effective basic income. Similarly, the income of daily long-distance commuters, who purchased relatively little in Berrien County compared to nonmovers, was weighted by a factor of 0.1.
As shown in Table 4-8, these weights gave an estimated effective basic income in Berrien County in 1972 of $26.5 million, 59 percent of the total project-related basic income by place of work.
Weights were similarly derived for the Study Area, as shown in Table 4-9. Income to nonmovers, the standard of comparison, was again given a weight of 1.0. Income to movers accompanied by families was weighted at 1.0, income to movers unaccompanied by families was weighted at 0.67, and income to daily long-distance commuters was
( weighted at 0.02, giving an estimated effective basic income in the Study Area in 1972 of
$3.0 million, only 6.7 percent of the total project-related basic income earned in the Study Area.
Nonbasic-to-Basic Multipliers. The second factor determining the nonbasic employment and income effects of the project in the Study Area and Berrien County is the nonbasic-to-basic employment and income multipliers. Based on the RIMS analysis, the appropriate multipliers for Berrien County were $1,000 of effective basic income to result in 0.03381 nonbasic jobs and $181.38 in nonbasic income in the county (by place of work).1 When applied to the estimated project-related effective basic income i
I These figures are in constant 1972 dollars and are based on the 1976 national input-output table. Since the structure of the Berrien County economy did not change substantially between 1972 and 1976, the 1976 relationships are considered appropriate for this analysis.
- 73
-- * ^
TABLE 4-8 D. C. COOK NUCLEAR PLANT ESTIMATED EFFECTIVE BASIC INCOME BERRIEN COUNTY 1972 Weighting Total Effective Basic Income" Factor Basic Income" Nonmovers $13,513.5 1.0 $13,513.5 Movers Accompanied by Families 8,195.5 1.0 8,195.5 Movers Unaccompanied by Families 8,180.3 0.4 3,272.1 Daily Outside Commuters 14,827.7 0.1 1,482.8 TOTALb $44,717.0 0.59 $26,463.9
" Thousands of 1972 constant dollars.
bTotals may not add exactly due to rounding.
74
- - - - - _ _ _ _ _ .- n o
TABLE 4-9 D.C. COOK NUCLEAR PLEANT ESTIMATED EFFECTIVE BASIC INCOME STUDY AREA 1972 Weighting Total Effective Basic Income" Factor Basic Income" Nonmovers $ 871.2 1.0 $ 871.2 Movers Accompanied by Families 633.3 1.0 633.3 Movers Unaccompanied by Families 932.4 0.67 624.7 Daily Outside Commuters 42,009.7 0.02 840.2 TOTALb $44,446.8 0.067 $2,969.4 aThousands of constant 1972 dollars.
Notals may not add exactly due to rounding.
Source: Mountain West Research,Inc.,1980.
l 75
($26,463.9 thousand), these multipliers indicate that the project caused 894 nonbasic jobs and $4.8 million in nonbasic income in Berrien County in 1972.
The RIMS multipliers were derived from data on Berrien County and, therefore, required adjustment to be applicable to the Study Area analysis, where the multipliers were expected to be smaller due to the smaller size of the Study Area economy. This adjustment was made by applying the results of research on the size and distribution of nonbasic response to increased basic activity in size-ordered economic systems,I conducted by Mountain West Research (Anderson,1980). Data from this research can be i
used to calculate the ratio of nonbasic response to an increase in basic income among economies in a system according to the position of the economy in a six-order size hierarchy. Placement of an economy in the hierarchy is based on the total personal income of residents in the economy's area. The Study Area, with total personal income of approximately $17.6 million in 1972, was in the smallest order, while Berrien County, with total personal income of approximately $774.2 billion in 1972 was in the 6th, or largest, order.
Based on this categorization, the nonbasic-to-effective-basic-income multipliers in the Study Area would be only 42.4 percent of those of Berrien County, or 0.014 nonbasic jobs (0.424 x 0.0338) and $76.9 in nonbasic income (0.024 x $181.38) for every
$1,000 of effective basic income in the Study Area. When applied to the $2,969.4 thousand in effective basic income, these multipliers give an estimated nonbasic response in the Study Area of 42 jobs and $228.3 thousand in income, by place of work, as shown in Table 4-10.
i Analysis of the size of the available labor force and the commuting patterns in the county (Southwestern Michigan Regional Planning Commission,1978; Driker,1969) and interviews with employers in the area indicated that about 90 percent (804) of the 894 nonbasic jobs created by the project in Berrien County were filled by nonmovers, about 5 percent (45 jobs) were filled by movers (of which 32 had families and 13 were 1
The size of the economy was measured by total personal income of residents.
2 Or members of other " mover" families, based on data from the Southwestern i Michigan Planning Commision,1978.
l 76
TABLE 4-10 D. C. COOK NUCLEAR PLANT NONBASIC EMPLOYMENT AND INCOME STUDY AREA AND BERRIEN COUNTY" 1972 Nonbasic to Basic Total Nonbasic Effective Employment Income Basic Income b Multiplier c Multiplier e Employment Incomeb Study Area $ 2,969.4 0.014 $ 76.90 42 $ 228.3 Berrien County $26,463.9 0.0338 $181.38 894 $4,800.0 a
Totals may not add exactly due to rounding.
d housands of constant 1972 dollars.
C Per thousand dollars of effective basic income.
Source: Mountain West Research, Inc.,1980.
l l
l l
l .
unmarried),1 and about 5 percent (45 jobs) were filled by daily long-distance commuters. Consequently, by place of residence, the project provided nonbasic employment for about 849 county residents, who earned $4,558.4 thousand in income.
A similar analysis for the Study Area indicated that about 50 percent (21 of the 42 nonbasic jobs) were filled by nonmovers while the remaining 21 jobs were filled by outside commuters. Study Area residents, therefore, obtained about 21 nonbasic jobs and about $112.8 thousand in nonbasic income from the project in 1972.
Total employment and income due to the project in 1972 The sum of the four components of employment and income generated by the D.C.
Cook project-direct basic, indirect basic, "other" basic, and nonbasic-is the total employment and income created in the Study Area and Berrien County by the project.
As shown in Table 4-11, in 1972 the total number of new jobs created by place of work was about 2,570 in the Study Area and 3,458 in Berrien County. Total income from this employment generated $44,675.2 thousand in income in the Study Area and $49,517.0 thousand in income in Berrien County.
As shown in Table 4-12, the ernployment and income effects on the Study Area and Berrien County by place of residence were substantially smaller. In the Study Area, the project provided employment for about 161 residents, who earned $2.5 million from project-related jobs. In Berrien County, project-related jobs employed about 2,569 residents who earned $34.4 million in income from them.
4.4.1.2 Employment andIncome Effects of the Project in 1978 Direct Basic Employment andIncome Effects of the Project in 1978 As in 1972, all eroployment at the project is considered direct basic employment and all income earned at the project is direct basic income at the place of work in the Study Area. In these terms, in 1978, the total annual average daily direct basic employment in the Study Area was 756, and the total direct basic income was $10.2 million (in constant 1972 dollars). The number of direct basic workers and the amount of 1
Based on the percentage (70 percent) of adult males in Michigan who were married (Verway,1979).
78 )
TABLE 4-11 D. C. COOK NUCLEAR PLANT TOTAL PROJECT-RELATED EMPLOYMENT AND INCOME BY PLACE OF WORK STUDY AREA AND BERRIEN COUNTY 1972 Study Area Berrien County Employment a Income Employment Income" Direct Basic 2,525 $44,419.8 2,525 $44,419.8 Indirect Basic 3 26.8 39 297.2 "Other" Basic - - - -
Nonbasic 2 4_2_ 228.6 894 4,800.0 TOTALb 2,570 $4,675.2 3,458 $49,517.0
" Thousands of constant 1972 dollars.
l b
Totals may not add exactly due to rounding.
Source: Mountain West Research,Inc.,1980.
79
)
l TABLE 4-12 D. C. COOK NUCLEAR PLANT TOTAL PROJECT RELATED EMPLOYMENT AND INCOME BY PLACE OF RESIDENCE STUDY AREA AND BERRIEN COUNTY 1972 Study Area Berrien County Employment 8 Income Employment Incom e" Direct Basic 137 $2,410.1 1,683 $29,607.3 Indirect Basic 3 26.8 37 282.0 "Other" Basic - - - -
Nonbasic H 112.8 849 4,558.4 TOTAL b 161 2,549.7 2,569 34,447.7
" Thousands of constant 1972 dollars.
b Totals may not add exactly due to rounding.
Source: Mountain West Research,Inc.,1980.
I 80
direct basic income by place of work in Berrien County in 1978 are the same as those for the Study Area.
As in 1972, not all of the direct basic employees were residents of the Study Area or Berrien County. In 1978, about 81 direct basic employees, earning $1.0 million (constant 1"/72 dollars) in income from the project area, were residents of the Study Area, and that 606 direct basic employees, earning $7.9 million (constant 1972 dollars),
were residents of Berrien County.
Indirect Basic Employment and income Ettects ui die I'rujat la 1975 In 1978, the value of the goods and materials purchased by the utility in the Study Area was $120.2 thousand. In Berrien County, it was $1,058.6 thousand (constant 1972 dollars). Utilizing the same ratios from RIMS as for 1972, the analysis indicates that in 1978 one indirect basic job and $10.8 thousand of indirect basic income were created in the Study Area while 12 indirect basic jobs and $95.0 thousand in indirect basic income were created in Berrien County.I "Other" Basic Employment and Income Effects of the Project in 1978 As in 1972, no "other" basic employment or income were found to be attributable to the project in either the Study Area or Berrien County in 1978. Although the staff in the Bridgman school system had increased substantially between 1967 and 1978, and some of this was undoubtedly due to the increased revenues to the school district, a large proportion was due to the acquisition of federal funds for aides and assistants. (Bridgman School District, Superintendent of Schools, personal communication, 1979.)
Consequently, the portion due to the project was considered below the margin of error of the analysis and, therefore, was excluded from further consideration.
Total Basic Employment andIncome Effects of the Project in 1978 The total basic employment and income due to the project in the Study Area and Berrien County in 1978 are shown in Table 4-13. These figures are substantially smaller than the comparable figures for 1972, the year of peak construction. This is primarily 1
The RIMS multipliers are $0.08971 indirect basic income per $1,000 of purchases and 0.01164 indirect basic jobs per $1,000 of purchases (constant 1972 dollars) (Drake, personal communication,1979).
81
l TABLE 4-13 D. C. COOK NUCLEAR PLANT DISTRIBUTION OF PROJECT-RELATED INCOME STUDY AREA AND BERRIEN COUNTY 1978 Total Basic Employment Total Basic Earnings" Direct Indirect Direct Indirect Basic Basic TOTAL Basicb BasicC TOTAL Study Area Nonmovers 41 1 45 5 544.1 $10.0 ?59.4 Movers, Accompanied by Family 22 0 22 272.0 0 272.0 Movers, Unaccompanied by Family 15 0 15 185.5 0 185.5 Daily Outside Commuters 675 0_ 675 9155.3 0_ 9155.3 TOTAL d 756 1 757 $10,156.9 $10.8 $10,167.8 Berrien County Nonmovers 328 11 339 4,258.8 87.1 4,345.9 Movers, Accompanied by Family 168 1 169 2,181.3 7.9 2,189.2 Movers, Unaccompanied by Family 110 0 110 1,428.2 0 1,428.2 Daily Outside Commuters 150 _0_ 150 2,288.6 0 2,288.6 TOTALd $95.0 $10,251.9 756 12 768 $10,156.9
" Thousands of constant 1972 dollars.
b Based on weighted average of $16,448 for construction and maintenance / repair workers.
C Based on average annual earnings of $10,800 in the Study Area and $7,914 in Berrien County (due to rounding effect on actual average of $7,707 per worker).
d Totals may not exactly total due to rounding error.
Source: Mountain West Research, Inc.,1980.
1 82
due to the great reduction in the work force between these two years. In the Study Area, estimated total basic employment by place of work was 757 and total basic income was
$10,167.8 thousand (1972 constant dollars), while in Berrien County, total basic employment by place of work was estimated at 768, and total basic income at $10,251.9 thousand (constant 1972 dollars).
In terms of employment by place of residence, a total of 82 basic employees earning $1,012.5 thousand (constant 1972 dollars) were residents of the Study Area in 1978. At the same time, a total of 618 county residents held basic jobs created by the project and earned $7,963.3 thousand (constant 1972 dollars) in income from them.
Nonbasic Employment and Income Effects of the Project in 1978 Utilizing the same analysis discussed for 1972, the basic income earned in the Study Area and Berrien County by each of the four categories of workers-nonmovers, movers accompanied by families, movers unaccompanied by families and outside commuters-was weighted to determine the total effective basic income in the Study Area and the county. Table 4-14 and Table 4-15 show the distribution of basic workers and basic income among these four categories, the weights applied to the income of each group, and the total effective basic income effects of the project in the Study Area and Berrien County. As seen in these tables, the total project-related basic income earned in Berrien County and in the Study Area in 1978 was about $10,251.9 thousand and $10,167.8 thousand, respectively (constant 1972 dollars). However, about 90 percent of the total project-related basic income earned in the Study Area was earned by daily long-distance commuters (workers who lived outside the Study Area); only about 10 percent was earned by workers living in the Study Area. Of this 10 percent,2 percent was earned by movers unaccompanied by families, indicating that, as in 1972, substantial adjustment was required to estimate the project-related income that actually entered the Study Area economy to generate nonbasic employment and income.
The same factors as in 1972 were used to calculate the effective project-related basic income in Berrien County and the Study Area in 1978, giving effective basic income estimates of $7,335.3 thousand and $1,134.3 thousand for the county and Study Area, respectively (constant 1972 dollars).
Conversion of the effective basic income to nonbasic employment and income was made as in *]7 2. The same RIMS multipliers were used for Berrien County and, since 83
TABLE 4-14 D. C. COOK NUCLEAR PLANT ESTIMATED EFFECTIVE BASIC INCOME BERRIEN COUNTY 1978 Effective Project-Related Basic Basic Basic Income Category Incomea Factor Incomea Nonmovers $4,345.9 1.0 $4,345.9 Movers, Accompanied by Families 2,189.2 1.0 2,189.2 Movers, Unaccompanied by Families 1,428.2 0.4 571.3 Daily Outside Commuters 2,288.6 0.1 228.9 TOTALb $10,251.9 0.72 $7,335.3 aThousands of constant 1972 dollars.
Notals may not add exactly due to rounding.
Source: Mountain West Research,Inc.,1980.
l l
84
TABLE 4-15 D. C. COOK NUCLEAR PLANT ESTIMATED EFFECTIVE BASIC INCOME l STUDY AREA '
1978 Effective Project-Related Basic Basic Basic Income Category Incom e" Factor Income a Nonmovers $ 554.9 1.0 $ 554.9 Movers, Accompanied by Family 272.0 1.0 272.0 Movers, Unaccompanied by Family 185.5 0.67 124.3 Daily Outside Commuters 9,155.3 0.02 183.1 TOTAL b $10,167.8 0.11 $1,134.3
" Thousands of constant 1972 dollars.
kotals may not add exactly due to rounding.
Source: Mountain West Research,Inc.,1980.
i i
4 l
i h
85
both the Study Area and Berrien County remained in the same size order (1 and 6 respectively), the same adjustment factor (0.424) for the multipliers was used for the Study Area. As shown in Table 4-16, the estimated nonbasic employment and income by place of work for Berrien County was 248 jobs and $1,330.5 thousand in income (constant 1972 dollars) while for the Study Area it was 16 jobs and $8't.2 thousand in income.
In 1972, the distribution of nonbasic employment among the four categories of workers gave an estimate that 8 of the 16 nonbasic jobs in the Study Area were filled by nonmovers and 8 were filled by daily outside commuters. In Berrien County, 223 of the 248 nonbasic jobs were filled by nonmovers, 9 by movers accompanied by families,4 by movers unaccompanied by families, and 12 by daily outside commuters. Over $43.6 thousand (constant 1972 dollars) was earned by the 8 nonbasic workers residing in the Study Area and $1,264.0 thousand (constant 1972 dollars) was earned by the 235 nonbasic workers residing in Berrien County.
Total Employment and Incorse Effects of the Project in 1978 Table 4-17 shows t ie total employment and income due to the project in the Study Area and Berrien County by place of work for 1978. It should be noted that these figures are estimates. The total number of new jobs created by the project in the Study Area was about 773, including 756 direct basic,1 indirect basic, and 16 nonbasic jobs. Total income generated by the project in the Study Area was almost $10.3 million. Similarly, in Berrien County, the project is estimated to have generated 1,016 new jobs and about
$11.6 million in income (constant 1972 dollars).
Table 4-18 shows the total number of residents of the Study Area and Berrien County employed in project-related jobs in 1978 and their earnings. An estimated 90 residents of the Study Area earned a total of $1,142.6 thousand in project-created jobs, while about 854 residents of Berrien County earned a total of $9,500.6 thousand (constant 1972 dollars).
4.4.2 Effects of the Project on the Study Area Economy Employment and Income Effects by Place of Work, 1967-1978 To give some sense of the magnitude and duration of the employment and income effects of the project on the economies of the Study Area and Berrien County, the annual employment and income due to the project has been estimated by assuming that the ratio 86
TABLE 4-16 D. C. COOK NUCLEAR PLANT NONBASIC EMPLOYMENT AND INCOME STUDY AREA AND BERRIEN COUNTY 1978 Effective Nonbasic to Basic Estimated Estimated Basic Employment Income Nonbasic Nonbasic Income
- Multiplier b Multiplier b Employment incomea Study Area $1,134.3 0.01400 76.90 15.9 $ 87.2 Berrien County $7,335.3 0.03381 181.38 248 $1,330.5 aThousands of 1972 dollars.
b Per thousand dollars of basic income.
Source: Mountain West Research, Inc.,1980.
)
87
. - _ _ -_ = .
TABLE 4-17 D.C. COOK NUCLEAR PLANT TOTAL EMPLOYMENT AND INCOME DUE TO THE PROJECT BY PLACE OF WORK STUDY AREA AND BERRIEN COUNTY 1978 Study Area Berrien County Employment Income" Employment Income" Direct Basic 756 $10,156.9 756 $10,156.9 i
Indirect Basic 1 10.8 12 95.0 "Other" Basic - - - -
Nonbasic 6 J_6_ 187.2 248 1,330.5 TOTAL b 773 $10,254.9 1,016 $11,582.4
" Thousands of constant 1972 dollars.
Dotals may not add exactly due to rounding.
Source: Mountain West Research,Inc.,1980.
1 I
(
i 88 1
TABLE 4-18 D. C. COOK NUCLEAR PLANT TOTAL EMPLOYMENT AND INCOME EFFECTS OF THE PROJECT BY PLACE OF RESIDENCE STUDY AREA AND BERRIEN COUNTY 1978 Study Area Berrien County Employment Income" Employment Income" Direct Basic 81 $1,088.2 606 $8,141.6 Indirect Basic 1 10.8 12 95.0 "Other" Basic - - - -
Nonbasic 8 43.6 236 1,264.0 TOTAL b 90 $1,142.6 854 $9,500.6
" Thousands of constant 1972 dollars.
Notals may not add exactly due to rounding.
89
i l
of direct basic employment and income to total project-related employment and income remained constant at the 1972 level from 1967 to 1972, then changed between 1972 and 1978 at a constant annual rate. This assumption can be made because direct basic employment and income dominate all the total income and employment analyses.
Table 4-19 shows the annual average direct basic employment and income by place of work from 1967-1978, while Table 4-20 shows the total employment and income for this period. This technique probably underestimates the employment effects in the early years and overestimates them in the later years because the direct basic workers' salaries were higher in 1972 and would have caused a higher nonbasic response per worker. As seen in Table 4-20, estimated total etnployment in the Study Area was over 1,500 each year between 1971 and 1977 except for 1975, and above 2,000 in Berrien County each year between 1971 and 1977 except for 1975.
As shown in Figure 4-2, in 1972, the employment created by the D.C. Cook project in Berrien County was estimated to be 3,458 jobs, about 4.6 percent of the approximately 76,000 jobs located in the county at that time, and about 5.0 percent of the total number of wage and salary jobs in the county (Verway, 1979:259-270; Southwestern Michigan Regional Planning Commission, 1978:99). The $49.5 million dollars in income generated in Berrien County by these jobs was about 7.7 percent of the total income earned in the county ($645.5 million). The percentage of total income was greater than the percentage of jobs because of the relatively high average annual wage in project-related employment.
In 1978, the 1,015 jobs .ind the $11.6 million in income created by the D.C Cook project accounted for 1.3 percent of the jobs in the county and 1.8 percent of the total
$657.5 million (constant 1972 dollars) income earned in the county.
In the Study Area, the estimated effect of the project on employment by place of work was dramatic, as shown in Figure 4-3. In 1972, well over 60 percent of all jobs in the Study Area were estimated to be project-related, and the presence of the project-related jobs almost tripled the total number of jobs in the Study Area economy in 1967.
By 1978, the percentage of Study Area jobs that were due to the project decreased to about 30 percent.
90
TABLE 4-19 D.C. COOK NUCLEAR PLANT ANNUAL AVERAGE DIRECT BASIC EMPLOYMENT AND INCOME BY PLACE OF WORK 1967-1978 Annual Average Daily Employment Annual Income" Year Construction Operation TOTAL Construction Operation TOTAL 1967 0 0 0 0 0 0 1968 88 0 88 $1,257.3 0 $1,257.3 1969 228 6 234 3,272.9 $ 42.0 3,314.9 1970 914 24 938 13,943.1 289.4 14,232.5 1971 2,010 46 2,056 34,236.3 545.3 34,781.6
$ 1972 2,377 148 2,525 42,626.7 1,792.9 44,419.6 1973 1,298 174 1,472 23,130.4 2,157.8 25,288.2 1974 1,827 249 2,076 30,830.6 3,214.5 34,045.1 1975 292 279 571 4,618.9 3,553.1 8,172.0 1976 1,228 322 1,550 20,805.0 3,952.9 24,758.9 1977 1,195 379 1,574 20,327.0 4,676.8 25,003.8 1978 314 442 756 5,164.6 4,992.2 10,156.8
" Thousands of constant 1972 dollars.
Sources: I&ME, personal communication,1979.
l TABLE 4-20 ESTIMATED ANNUAL EMPLOYMENT AND INCOME EFFECTS 8 BY PLACE OF WORK STUDY AREA AND BERRIEN COUNTY 1967-1978 Study Area Berrien County Employment
- Income b Employment
- Incomeb
- 1967 0 0 0 0 1968 90 $ 1,557.3 120 1,726 1969 238 4,140.9 320 4,591.7 l
1970 955 16,599.0 1,285 18,406.1 1971 2,093 36,383.4 2,816 40,344.3 1972 2,570 44,678.0 3,458 49,547.4 1973 1,499 24,919.8 2,009 27,714.1 1974 2,116 33,621.8 2,824 37,507.0 1975 582 8,846.8 774 9,899.5 I
1976 1,582 22,974.1 2,095 25,787.2 1977 1,608 22,318.6 2,120 25,128.7 I I
1978 773 10,254.9 1,015 11,582.4 abased on the ratio of 1972 total project-related employment to direct basic employment (Study Area equals 1.018; Berrien County equals 1.370) times the annual average direct basic employment (from Table 4-19) for the period 1967-1972, increased at a constant annual rate between 1972-1974 to reach the 1978 total project-related-to-direct-basic-employment ratio (Study Area equals 1.022.; Berrien County equals 1.343).
b Based on the 1972 total income to direct basic employment ratio times annual average direct basic employment for 1968-1972, decreased at a constant annual rate between 1972 and 1978 (to reach the 1978 income-to-employment ratio). Amounts expressed in thousands of 1972 dollars.
I h
1
, 92 l
l
80,000-
/N /
75,000-f
/ s's f
/ \ /
/\g '
/ \ [
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/
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s f \ /
s f \ /
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h 70,000- N /
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l L i I 4 I I I I I I
, 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 YEAR
(
j Total County Employment- with Project
- Estimated County Employment without Project Total Project-Related Employment in County I
I l FIGURE 4-2. Project-Related Employment by Place of Work in Berrien County, j
1967-1978.
l 93
- 5,000 -
i t
i 4,000 -
I l
O W 3,000-p O
a a.
2 -
w IK 2,000-3 Z
~
M
'hs l
1,000 - > :41 i l
- V O
1987 1972 1978 YEAR Total Study Area Employment with Project Total Project-Related Employment in Study Area l :: 1l Estimated Study Area Employment without Project FIGURE 4-3. Project-Related Employment by Place of Work in Study Area, 1
l 1967-1978.
1 94
4.4.3 Effects of the Project on the Residents of the Study Area The employment and income effects of the project on the residents of the Study Area and Berrien County for each year of the study period are shown in Table 4-21.
These estimates were derived utilizing the same assumptions about constant direct basic to total ratios as in the previous analysis. As shown in Table 4-21, over 100 residents of the Study Area were employed in project-related jobs for 5 years during the study period. Over 1,500 Berrien County residents obtained such employment for 6 years.
Thus, in Berrien County in 1972 about 2,500 county residents held project-related jobs, about 3.4 percent of the total labor force in the county. In 1972, the project had crused an increase in the labor force, by in-migration, of about 1,000 workers,I 1.4 percent of the county labor force in 1972. In 1978, a similar analysis indicates that up to 279 additional workers may have been added to the labor force due to in-migration. This was a negligible fraction of the county labor force in 1978, as shown in Figure 4-4.
In 1972, about 48 Study Area residents who had lived in the area prior to the project were employed in jobs at the project itself. Another 89 persons had moved into the Study Area for employment in such jobs. In addition, approximately 24 Study Area residents obtained work in the indirect and nonbasic jobs created by the project in the Study Area. Although the project-related jobs were a substantial proportion of the total number of jobs in the Study Area economy, they accounted for about 10 percent of the jobs held by Study Area residents in 1972 and less than 4 percent of the total number of jobs in Berrien County. The relatively dense settlement pattern, scattered industrial locations, and the high rate of intercommunity residence-to-work commuting diffused the effects of changes in employment opportunities at any particular location on unemployment and underemployment.
In the Study Area, 1,427 (53 percent) of the 2,674 residents age 14 or over were employed in 1970 -73.1 percent of the males and 34.3 percent of the females. Only 62 persons in the Study Area-2.3 percent of those age 16 and over in the labor force-were classified as unemployed (U.S. Bureau of the Census, 5th count tapes). The I There were 930 movers who were direct basic workers plus 45 movers who were nonbasic workers.
95 t
TABLE 4-21 D. C. COOK NUCLEAR PLANT ESTIMATED ANNUAL EMPLOYMENT AND INCOME EFFECTS BY PLACE OF RESIDENCE STUDY AREA AND BERRIEN COUNTYa 1967-1978 Study Area Berrien County Employment Income b Employment Income h 1967 0 0 0 0 1968 6 88.9 90 1,200.60 1969 15 236.3 238 3,192.40 1970 60 947.2 954 12,796.80 1971 131 2,076.1 2,092 28,049.30 1972 161 2,549.7 2,569 34,447.70 1973 98 1,569.0 1,524 19,694.60 1974 163 2,335.3 2,187 27,270.20 1975 50 677.9 612 7,364.10 1976 150 1,942.0 1,691 19,626.30 1977 169 2,081.2 1,747 19,542.61 1978 90 1,056.1 854 9,227,30 abased on a constant ratio of direct basic etnployment to total employment and income as in 1972 between 1968-1972, adjusted to 1978 ratio at a constant average annual rate.
b Thousands of 1972 dollars.
Source: Mountain West Research, Inc.,1980.
96
75,0 0 0 ~
/
f ' ,,a "% f ~ ~ ~,. .
%*/
70,000- /
s 65,000 -
60,000-m O
u.
g 55,000-O m
4 J 50,000-E 07 m
$ 15,000-3 3
2 10,0 0 n -
5,000-e -*-*%.,,,'*",
f
-g \ _ , - ~ *-- .
I I I i i 1967 4 i i 1 i 1 1968 1969 1970 1971 1972 1973 1974 1976 1975 1977 1978 YEAR Total County Labor Force with Project Estimated County Labor Force without Project
County Residents with Project-Related Employment j
i l
FIGURE 4-4. Labor Force Ef fects of D.C. Cook Nuclear Plant on Berrien County, 1967 - 1978.
! 97 1
unemployment rates in Berrien County throughout the 1970s was substantially above the national levels. From 1978 onward, Berrien County unemployment ratios were equivalent to or greater than the state's. Although the availability of employment in project-related jobs undoubtedly contributed to the employment of county residents, it was not a sufficiently dominant element in the total economy to overwhelm the economic cycle in the area; and despite the expansion of the on-site work force to 1,550 and 1,574 in 1976
, and 1977, the Berrien County unemployment rate remained well above state levels.
These questions of the D.C. Cook project's role in the Study Area and Berrien County are severely comfounded by the 1974-1975 recession, which adversely affected the economy of both Berrien County and the Study Area and simultaneously forced an almost complete shutdown of the D.C. Cook project. Wage and salary employment dropped dramatically-in 1975 it was 64,663, about 5,000 jobs below 1973-1974 levels.
Unemployment rose from 6.0 percent in 1973 and 7.3 percent in 1974 to 15.6 percent in 1975, when over 11,600 workers were unemployed. The unemployment rate then remained above 8 percent through 1978, a level which was well above the rates for both '
Michigan and the United States (Verway, 1979:259).
l In general, interviews with representatives of the major employers in Berrien County and with a number of Study Area residents indicated that the construction of the D.C. Cook plant was considered beneficial, but not critical, to the employment opportunities in the county or in the Study Area. To a large extent, its moderate effect was due to the temporary nature of the large r. amber of construction sector jobs created by the project.
Although a nu:nber of women found employment in project-related jobs and the labor force participation rate of white women in Berrien County increased substantially during the period (while that of white men decreased slightly), the D.C. Cook project did not appear to be directly related to these changes. Even in the Study Area, little effect on labor force rates was attributed to the project, largely because of the variety of other economic activities in the vicinity with generally comparable work characteristics for the unskilled jobs available to most applicants.
i 98 i .
Because the project employed such a small proportion of the Study Area residents,1 the income generated in the Study Area did not substantially affect the median family or per capita personal income of Study Area residents. Of greater effect on the standard-of-living were the reductions in the tax rates, increased public services (such as the water eystem in Lake Township), and the better equipped fire department, all of which are discussed more thoroughly in Chapter 7. This is not to say, of course, that the employment and income from project-related jobs were not significant for the standard-of-living of the individuals and families affected, but rather that the employment of 48 local residents as workers at the project site and another 24 in project-created jobs in other sectors, plus the influx of an additional 89 workers was insufficient to affect the overall Study Area population. This was particularly true since at least half of the 48 nonmovers at the project were employed in nonconstruction jobs that generally did not pay exceptionally high wages.
A very similar argument can be made for Berrien County. The project simply did not employ a sufficient number of local residents in high paying jobs for there to be a noticeable.effect on the overall standard-of-living. Between 1967 and 1972, the average per capita income in Berrien County increased 23 percent (from $3,759 to $4,636 in constant 1972 dollars). During the same period, average per capita income in Michigan increased by 41.3 percent. These figures do not demonstrate any dramatic change in per capita income in Berrien County during the years of peak project activity.
1 Even during peak construction, less than 10 percent of those employed in the Study Area were employed in project-related jobs.
j 99 n- o
CHAPTER 5: POPULATION 5.1 Introduction Chapter 5 analyzes the population effects of the D.C. Cook project on the Study Area (Bridgman and Lake Township) and Berrien County. The purpose of this analysis is to determine the extent to which the project' affected the Study Area by altering its population characteristics. The demographic trends in the Study Area and Berrien County are discussed to provide a basis for determining the demographic implications of the basic and nonbasic employment created by the project. Two sources of population increase are considered: increases due to the in-migration of workers and their household members for project-related employment, and increases from diminished out-migration of local residents and their household members due to project-related employment. Further demographic effects are addressed in Chapter 8, where the impacts on groups in the Study Area are conridered.
5.2 Demographic Trends The population trends in Berrien County from 1900 to 1978 and in the Study Area from 1950 to 1978 are shown in Figure 5-1 and Table 5-1. Aside from minor aberrations, the population in Berrien County, Bridgman, and Lake Township increased up to 1970.
Between 1900 and 1970, the average annual growth rate in Berrien County was 1.7 percent (U.S. Bureau of the Census). In Berrien County, growth was more rapid between 1940 and 1960 than between 1960 and 1970. In 1940, Berrien County had a population of almost 90,000 people. In 1960 the county had a population of 150,000, and in 1970 the population was 164,000. The difference in growth rate between 1950-1960 (2.6 percent) and 1960-1970 (0.9 percent) was due largely to a change in net migration patterns.1 Between 1950 and 1960, the county had a net in-migration of 9,831 persons (a migration rate of 7.0 percent) and a net positive migration of both whites ar.d blacks. (U.S.
Department of Agriculture, Economic Research Service, 1965:198.) However, between 1960 and 1970, the county experienced a net out-migration of 6,213 and a net migration rate of 3.7 percent, the result of a net out-migration of 7,640 whites and a net I By 1967, the shift had had a substantial effect, lowering the percentage of population increase due to migration from 28.5 percent in 1960 to 15.7 percent in 1967 (Bricker, 1969:13).
100 !
0 , _
Berrien County
- --- Study Area
- Lake Township
Bridgman 15 0p 0 0 - )
Z _
o
>=
4 d 100,000-4 O
E 50,000-CN 10,000-
--_______------__ g I
1900 1910 1920 1930 1940 1950 1960 1970 1975 1980 j YEAR l
i FIGURE 5-1. Population of Berrien County, Bridgman, and Lake Township, 1900 - 1978.
101
- n
TAELE 5-1 D.C. COOK NUCLEAR PLANT POPULATION IN THE STUDY AREA AND BERRIEN COUNTY 1900-1978 Berrien County Bridgman Lake Township Study Area Average Average Average Average Annual Annual Annual Annual
> Population Percent Population Percent Population Percent Population Percent 1900 49,165 1910 53,622 0.9 1920 62,653 1.6 1930 80,066 2.5
_ 1940 89,117 1.1 774 1,154 1,928 g 1950 115,702 2.7 997 2.6 1,432 2.2 2,429 2.3 1960 149,865 2.6 1,454 3.9 2,106 3.9 3,560 163,940 3 3.9 1970 0.9 1,621 1.1 2,146 b 0.2 3,767 0.8 1971 164,300 0.3 NA 4.2 NA 3.2 NA 0.2 1972 167,000 1.6 NA 4.2 NA 3.2 NA 0.2 1973 168,800 1.1 1,835 4.2 1,951 3.2
- 3,786 0.2 1974 169,500 0.4 NA 3.8 NA -0.5 NA 1.6 1975 170,100 0.4 1979 3.8 1,931 -0.5 1976 3,910 1.6 170,800 0.4 2,128 7.5 1,961 1.6 4,089 4.6 1977 170,100 -0.4 2,194 3.1 1,979 0.9 4,173 2.1 1978 167,300 -1.7 4,200 0.6 NA: Not available; growth rates are assumed to be constant across years for which no data are available, abased on original census figures; subsequent revisions lowered the 1970 population figure to 163,875.
b Based on original census figures; subsequent revisions lowered the 1970 population figure to 1959. However, the revised figure may be too low due to undercounting of transients.
Source:
Verway, 1979:40; BEA, Regional Economics Information System, 1979; Michigan Department of Management and Budget, special release,1979; U.S. Bureau of the Census, Current Population Reports, P-25 and P-26 Series.
in-migration of 1,427 blacks. (U.S. Department of Agriculture, Economic Research Services, 1975:86.) Between 1960 and 1970, the net natural increase (births minus deaths) in Berrien County was 20,264. This resulted in an increase in county population despite the net negative migration. (U.S. Bureau of Census P-26 Provisional Report as cited in Southwestern Michigan Regional Planning Commission, 1978:71.)
From 1970 to 1978, the county experienced a ' population change of about 3,400 persons. According to the census figures, the net natural increase during this period was 11,800 (24,500 births and 12,700 deaths, adjusted for under-registration), and the net migration was a minus 8,400 (Verway, 1979:48, corrected in figure for total population change).
There is some disagreement among published sources regarding the exact population figures for Bridgman and Lake Township. However, as shown in Figure 5-1, the population in each of these municipal units increased between 1950 and 1960, with average annual growth rates of 3.9 percent. In both Bridgman and Lake Township, these rates declined during the 1960s. By 1970, the population of Bridgman had grown by only 167 persons (to 1,621), an average annual rate of 1.1 percent, and the population of Lake Township had grown by only 40 persons, an annual average rate of 0.2 percent. Average annual growth in Bridgman increased to 4.2 percent between 1970 and 1973 as the city added 214 persons, then to 4.6 percent between 1973 and 1977. In Lake Township, however, population declined between 1970 and 1973,I when the average annual growth rate was a minus 0.2 percent. It then grew at an average annual rate of 0.4 percent between 1973 and 1977, as the population in the township declined to 1,931 in 1975, then rose to 1,979 in 1977. (Verway,1979:40 based on P-26 and P-25 U.S. Bureau of Census figures.)
These figures indicate that the population of the Study Area 2. creased from 2,429 persons in 1950 to 3,560 in 1960 and 3,767 in 1970. Between 1970 and 1973, these estimates show the Study Area population to have increased by only 19 persons, (to I
I
- Based on original census figures. Subsequent revisions lowered the 1970 i
population figure to 1959, showing a net population decline of 147 persons in Lake Township between 1960 and 1970.
103 a
l 3,786). By 1978, the Study Area population was estimated at about 4,200 persons (U.S.
Bureau of the Census, P-26 Series).
Race and Age In 1970,11.2 percent of the population of Berrien County was black. Subsequent to 1940, there had been a consistent net in-migration of blacks into Berrien County:
many settled in the larger urban centers of Benton Harbor and Benton Township; almost none settled in the Study Area. Table 5-2 shows the percentage of the population that was nonwhite in the Study Area and Berrien County. By the late 1960s, the rapid in-migration of blacks to Berrien County had slowed considerably. Nevertheless, the nonwhite population increased by 40.7 percent between 1960 and 1970, while the white population increased by only 5.8 percent. As a consequence, the percentage of the population in Berrien County that was nonwhite increased from 8.7 in 1960 to 11.2 in 1970.
In both the county and the Study Area, there were countervailing migration trends due to retirement, with some elderly persons moving in while others moved out. In Berrien County between 1950 and 1960, there was a slight net in-migration (789) of persons 60 years of age and over (U.S. Department of Agriculture, 1965:198). Between 1960 and 1970, there was a counterbalancing net out-migration of 629 elderly persons (U.S. Department of Agriculture, 1975:97). By 1970,10.4 percent of the Berrien County population was 60 years or older compared to 8.5 percent in the State of Michigan, and 11.3 percent in the Study Area (U.S. Bureau of the Census).2 The median at in the county and Study Area declined between 1960 and 1970, following state and national trends. As shown in Table 5-3, in 1970, the median age in Bridgman and Lake Township was 29.7 and 29.3, respectively, somewhat higher than the median age in either Berrien County or the State of Michigan. (U.S. Bureau of the Census, 5th count tapes,1970; U.S.
Bureau of the Census,1972 General Characteristics for County Subdivisions.)
I It seems likely that these figures are somewhat too low and that the 1973 figures should be higher and the 1975 figures lower.
Z The percentage of total population 65 years and older in Berrien County increased from 9.2 to 10.0 between 1970 and 1976 and from 8.5 to 9.2 in the State of Michigan (Verway, 1979:58).
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TABLE 5-2 D.C. COOK NUCLEAR PLANT NONWHITE POPULATION IN BERRIEN COUNTY AND STUDY AREA 1960-1970 Study Area Berrien County 1970 1960 1970 White 3,859 136,874 144,803 Nonwhite 10 12,991 18,283 TOTAL 3,869 149,865 163,875 Percent Nonwhite 0.2 8.7 11.2 Source: U.S. Bureau of the Census, Census of the Population,1960 and 1970.
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TABLE 5-3 D.C. COOK NUCLEAR PLANT AGE DISTRIBUTION OF STUDY AREA AND BERRIEN COUNTY 1970 Lake Berrien Bridgman Township Study Area County Percent of Population Under 18 32.2 36.1 34.4 37.9 Age 18 to 64 56.6 51.9 53.9 52.9 Age 65 and older 11.2 12.0 11.7 9.2 Median Age 29.7 29.3 na 27.4 Source: U.S. Bureau of the Census, in Southwestern Michigan Regional Planning Commission, 1978:64 and Berrien County Planning Commission, 1975:42.
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The average household size in Berrien County declined between 1960 and 1970-froc 3.33 to 3.19 persons. In the Study Area in 1970 the population size was 2.89 in Bridgman and 3.28 in Lake Township. (U.S. Bureau of Census, 5th count data tapes,1979; and Lake Township Planning Commission,1979.)I 5.3 Population Effects due to the Project 5.3.1 Introduction Two types of population effects 2 from the D.C. Cook project are analyzed:
change due to in-migration, and change due to diminished out-migration. For both categories, employment due to the project was the force assumed to be driving the population change.3 5.3.2 Population Effects in 1972 Changes due to In-Migration The principal demographic effects attributable to the D.C. Cook project are those resulting from the in-migration of workers and accompanying household members to the Study Area because of project-related employment. In 1972, the project created an estimated 2,570 jobs in the Study Area and an estimated 3,458 jobs in Berrien County as a whole (2,520 in the Study Area plus an additional 888 jobs elsewhere in the county). As shown in Table 5-4, 51 of the 2,528 basic jobs in the Study Area in 1972 were held by nonmovers, 36 were held by movers accompanied by their families, 53 were held by movers who were single or unaccompanied by their families, and 2,388 were held by daily long-distance commuters. In 1972, the project created about 42 additional nonbasic jobs I Median age in Michigan fell from 28.3 to 26.3 years between 1960 and 1970.
2 Although it is possible that a project could cause out-migration or prevent in-migration or both, neither case appears to apply for D.C. Cook, and therefore neither one is pursued.
3There are indications in some studies that there may be an attraction of people who are seeking work to the areas near a large project and that not all project-related papulation change is actually " employment" driven. This effect was not thought to have been large in either Berrien County or the Study Area and, thus, was not pursued.
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TABLE 5-4 D.C. COOK NUCLEAR PLANT PROJFCT-RELATED EMPLOYMENT BY WORKER CATEGORY THE STUDY AREA AND BERRIEN COUNTY 1972 Study Area Berrien County Basic" Nonbasicb TOTAL Basic e
Nonbasicd TOTAL Nonn2 overs 51 21 72 791 805 1,596 Movers, Accompanied by Families 36 0 36 465 32 496 Movers, Unaccompanied by Families 53 0 53 465 13 479 Daily Outside Commuters 2,388 21 2,409 842 45 887 TOTAL 2,528 42 2,570 2,564 894 3,458 a2,525 direct basic,3 indirect basic.
b Based on 50/50 nonmover/ commuter, discussed in text in Chapter 4.
c2,525 direct basic,39 indirect basic.
d Based on 90 percent nonmovers, 5 percent movers, and 5 percent commuters (SWMRPC,1978) and 70 percent of movers accompanied by families (Verway,1979),
discussed in Chapter 4.
Source: Mountain West Research, Inc.
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in the Study Area, of which about 21 were held by nonmoversl and 21 by daily long-distance commuters.2 The distribution of workers holding the 2,564 basic and 894 nonbasic jobs created in Berrien County are also summarized in Table 5-4.
The population change from in-migration to the Study Area and Berrien County was assumed to be due to the " movers" and their accompanying household members.
Based on figures obtained by Malhotra for workers on similar projects in the Midwest, an average family size of 3.4 was used for accompanied basic workers. To estimate the number of additional household members in-migrating to the Study Area and Berrien County with nonbasic workers, the average household size in Michigan in 1970 (3.27) was used. (Malhotra, 1979:210, Berrien County Planning Commission, 1971:12) As shown in Table 5-5, these figures indicate that the project caused an in-migration to the Study Area of 175 persons in 1972-89 workers,36 spouses, and 50 children or other household members-and an in-migration to Berrien County of 2,193 persons-975 workers, 496 spouses, and 722 children or other household members.
Population Change due to Diminished Out-Migration The D.C. Cook plant could also have caused diminished out-migration as workers who would normally have lef t to obtain employment elsewhere may have stayed because they found work on project-related jobs.
The effect of the project on out-migration was analyzed by examining the out-migration trends and other employment opportunities in the Study Area and Berrien County during the study period. The employment created by the project, particularly that filled by local residents of either the Study Area or the county, was only a small fraction of the total employment opportunities in the labor market area. Therefore, some of the 72 workers from the Study Area and the 1,596 workers from the county who were employed in project-related jobs in 1972 might have out-migrated had those jobs not been available. Examination of the limited data available on work force response as well as interviews with area residents and employers indicated that the percentage of the nonmovers obtaining jobs at the project who would otherwise have out-migrated was 1
Including f amily members of other project-related workers.
2 Daily long-distance commuters include residents of neighboring communities.
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TABLE 5-5 D.C. COOK NUCLEAR PLANT POPULATION IN-MIGRATION DUE TO THE PROJECT STUDY AREA AND BERRIEN COUNTY 1972 Study Area Berrien County Additional Additional Employment Household Household Category Workers Members" TOTAL Workers Members TOTAL Basic Workers Movers Accompanied by Families 36 86 122 465 1,116 1,581 Movers Unaccompanied by Families 53 0 53 465 0 465 Nonbasic Workers Movers Accop' anied by Families 0 0 0 31 70 101 Movers Unaccompanied b by Families 0 0 0 14 0 14 TOTAL IN-MIGRANTS 89 86 175 975 1,186 2,161
" Based on average family size of 3.4 (Malhotra,1979:210).
b Based on 90 percent in county, 5 percent movers (of whom 70 percent are married).
cBased on 1970 average household size in Michigan of 3.27 (Berrien County Planning Commission, 1971:12).
Source: Mountain West Research, Inc.
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cmall and, in tha Study Aran in particular, fewer than the margin of crror of the total I nonmover worker and additional household member estimates. Consequently, for the purposes of estimating total population effects, no diminished out-migration is attributed to the project.
..i Total Population Effects in 1972 The total population effect of the project in 1972 is the sum of the increase due to in-migration and the increase due to diminished out-migration. Since no diminished out-migration was attributed to the project, the total population effects in 1972 are those shown in Table 5-5: in the Study Area, an increase of 175 persons-89 workers and 86 additional household members; and in Berrien County, an increase of 2,161 persons-975 workers and 1,186 additional household members.
5.3.3 PoMation Effects in 1978 Population Change due to In-Migration In 1978, as in 1972, the project caused population increase as a result of the employment of in-migrants in project-related jobs. As shown in Table 5-6, 37 workers had moved into the Study Area in 1978 (all basic employees), and 291 workers (279 basic and 12 nonbasic employees) had noved into Berrien County for employment on project-related jobs.I Lacking specific family size information, the calculation was based on the average household size in Michigan in 1975 (3.05). The total estimated population increase in the Study Area in 1978 due to project-related in-migration was 102 persons-37 workers and 65 additional household members. In Berrien County in 1978, the total estimated population increase was 809 persons-291 workers and 518 additional household members. These figures are shown in Table 5-7.
Population Change due to Diminished Out-Migration As in 1972, consideration of the estimated number of nonmovers employed in project-related jobs (53 in the Study Area and 562 in Berrien County) and the availability of alternative employment in the area resulted in the conclusion that there were no l
I For calculations regarding the 248 nonbasic jobs, a 90 percent nonmover, 5 percent mover, and 5 percent commuter distribution was used, along with a married-accompanied-by-family rate of 0.7 percent (based on the Michigan percent married rate).
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TABLE 5-6 D.C. COOK NUCLEAR PLANT PROJECT-RELATED EMPLOYMENT BY WORKER CATEGORY STUDY AREA AND BERRIEN COUNTY 1978 Study Area Berrien County Basic" Nonbasicb TOTAL Basic c Nonbasicd TOTAL Nonmovers 45 8 53 339 223 562 Movers Accompanied by Families 22 0 22 169 8 177 Movers Unaccompanied by Families 15 0 15 110 4 114 Daily Outside Commuters 675 8 683 150 12 162 TOTAL 757 16 773 768 247 1,015 "756 direct basic,1 indirect basic, b
Assumes 50 percent split for nonbasic in Study Area.
c756 direct basic,12 indirect basic.
d Assumes 0.9 nonmovers, 0.05 movers, 0.05 outside commuters for nonbasic in county and 0.7 movers with families (Southwestern Michigan Regional Planning Commission,1978; Verway,1979).
Source: Mountain. West Research, Inc.
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I TABLE 5-7 D.C. COOK NUCLEAR PLANT POPULATION IN-MIGRATION DUE TO THE PROJECT '
1978 l Study Area Berrien County In-migrant Additional Additional Employment Household Household Category Workers Members" TOTAL Workers Membersb TOTAL Basic Workers Movers, Accompanied by Families 22 65 87 169 495 664 Movers, Unaccompanied by Families 15 0 15 110 0 110 Nonbasic ~#orkers Movers, Accompanied by Families 0 0 0 8 23 31 Movers, Unaccompanied by Families 0 0 0 4 0 4 TOTAL IN-MIGRANTS 37 65 102 291 518 809 a
Based on average household size of 3.05, the Michigan figure for 1975, and a marriage rate of 70%. (Verway, 1979:82) b Based on 90% in county, 5% movers (of whom 70% are married). See Chapter 4.
Source: Mountain West Research, Inc.,1980.
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significant population effects due to diminished out-migration for either the Study Area or Berrien County in 1978.
Total Population Effects in 1978 In 1978 the population of the Study Area is estimated to have been increased by 102 persons due to the project, while the population of Berrien County was increased by 809 persons.
5.3.4 Summary Based on the calculations for population increases in 1972 and 1978, the annual population effects of the project shown in Table 5-8 were estimated, assuming a constant relationship between population increase and total work force, weighted for the ratio of construction to operation workers on site. As seen in this table, the population due to the project reached its highest level in 1972 when it accounted for about 4.6 percent of the Study Area (estimated) population and about 1.3 percent of the Berrien County population. The bimodal distribution of project-related population resulted from the drastic cutback in construction activity in 1975 and the build-up in 1976.
Based on this analysis, it appears that the population effects of the project on the Study Area and Berrien County were relatively small, considering the magnitude and value of the project. The population changes due to the project were not a dominant element of the overall population changes in either area. The population effects of the project were moderated by the availability of labor within commuting distance and the density of settlement in the region, which spread the population effects among a large number of communities.
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TABLE 5-8 D.C. COOK NUCLEAR PLANT POPULATION INCREASE DUE TO THE PROJECT STUDY AREA AND BERRIEN COUNTY 1967-78 Estimated Project-Related Population Increase Study Area Berrien County Work Force Year Construction a Operations TOTAL Number Population Percent Number Population Percent 1967 0 0 0 (3,674)b 88 0 88 5 (3,704) 0.1 74 0.0 1968 228 6 234 15 (3,734) 0.4 200 0.1 1969 914 24 938 61 3,767 1.6 802 163,875 0.5 1970 2.,010 46 2,056 133 (3,774) 3.4 1,756 164,300 1.1 1971 2,377 148 2,525 175 (3,782) 4.6 2,193 167,000 1.3 g 1972 1,314 168,800 0.8 m 1973 1,298 174 1,472 114 3,786 3.0 1,827 249 2,076 161 (3,846) 4.2 1,855 '169,500 1.1 1974 292 279 571 72 3,910 1.9 595 170,100 0.3 1975 1976 1,248 302 1,550 135 4,089 3.4 1,431 170,800 0.8 1977 1,215 359 1,574 144 4,173 3.5 1,475 170,100 0.9 1978 334 422 756 102 (4,260) 2.5 809 167,300 0.5
^ Assumes that the 20 maintenance, refueling, and repair personnel were similar to construction workers in distribution and population effects.
b Population assumed to grow at constant annual rate between known points.
Source: Mountain West Research, Inc.,1980.
CHAPTER 6: SE"ITLEMENT PATTERNS AND HOUSING 6.1 Introduction The purpose of Chapter 6 is to identify the effects of the D. C. Cook project on ,
settlement patterns and housing in the Study Area and Berrien County. In this chapter, the historical trends in the area are examined, with particular attention to the changes that took place during the study period (1968-1979). Based on the analysis of the preceding chapters, estimates are made of the effects of the D. C. Cook project on new 1 housing construction, upgrading of existing houses, and conversions of seasonal housing.
The effects on cost and availability of housing units are also examined. j i
6.2 settlement Patterns 6.2.1 Factors Influencing Settlement Patterns of the Study Area and Berrien County 6.2.1.1 Berrien County The general settlement patterns of Berrien County were strongly influenced by the following: natural features; transportation routes; geology, topography, drainage, and soil patterns; and historical economic and demographic trends. As discussed previously, the county is located on the southeastern shore of Lake Michigan. Its type of soil and its Lake Michigan-tempered climate make it suitable for the production of a wide variety of agricultural products, particularly fruits and berries.
The population growth in the county and its proximity to major population centers, particularly Chicago, combined with the Lake Michigan beaches and sand dunes, resulted in the development of tourist / recreation / amusement facilities, particularly along the Lake Michigan shoreline. Settlements of impressive summer homes grew up in the high, wooded dunes that ran along the entire Berrien County lakefront, and the Benton Harbor area developed one of the most famous amusement parks / tourist areas in the state.
Much of the post-World War II population and industrial growth occurred around
- the St. Joseph-Benton Harbor area, which was the dominant center in the northern half of the county. However, during the 1960s, a combination of historical circumstances, including the in-migration of blacks and the relocation of industries and residential areas out of urban centers and into rural areas, produced substantial out-migration from these
" twin-cities" by white residents, manufacturers, and retail businesses. The flight to smaller towns and the rural fringe areas that began in the 1960s constituted a no*iceable movement that lef t large areas (Benton Harbor, in particular) badly scarred despite 116
i efforts at urban renewal and resulted in a great increase in the number of people living in
" rural residential" areas. Growth continued to be focused in the suburban areas through the 1960s and 1970s while the major urban centers declined in population. The development of shopping malls outside of the city centers, the expansion of several of the county's large manufacturers into suburban locations, and residential growth in the suburban and rural villages, cities, and townships resulted in a dispersal of industry, commerce, and residential developments into the areas neighboring the larger population centers.
6.2.1.2 The Study Area Bridgman and Lake Township are closely linked with the economy of the rest of the county, particularly with the Benton Harbor-St. Joseph area, yet they are not really part of the " twin-cities" area, which includes Benton Harbor, St. Joseph, and Lincoln Township. Although the settlement and development patterns of the Study Area (Bridgman and Lake Township) reflect many of the trends of the county, the Study Area has remained decidedly more provincial, more rural, and more small-town oriented than have the more northerly communities. Located on Lake Michigan, the Study Area has some of the most scenic beach and sand dune areas on the southern portion of the lake.I' In addition, there developed relatively early in this area a substantial number of summer homes and commercial recreational facilities.
Bridgman, although jurisdictionally separate, is geographically enclosed by Lake Township except on its lakeshore boundary (see Figure 3-2). Both Bridgman and Lake Township have lakeshore frontage that has been developed into parks and residential areas. 2 Bridgman historically functioned as the service center for the immediately surrounding areas, including Lake Township. Commercial and industrial activity tended to be located along the two main transportation routes, Red Arrow Highway (and later I-94), which ran north-south, and Lake Street, which ran east-west. The Red Arrow Highway /I-94 interchange attracted industrial and commerical activity in the late 1960s and 1970s. Residential, commercial, and industrial land uses were interspersed in the Study Area. In many cases, no distinct boundaries seoarated different types of i
I Part of which has been developed into Warren Dunes State Park.
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The D. C. Cook plant is located along the lake in the northern portion of Lake Tovinship.
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development although there were zoning ordinances. Bridgman, which became a city in 1949 despite its relatively small area and population, was constrained from geographic expansion by Lake Michigan and its boundaries with Lake Township, which were enforced by strict annexation laws. (Mayor of Bridgman, personal communication. 1979; Supervisor of Lake Township, personal communication,1980.)
Most community and social facilities were located in downtown Bridgman or near the Bridgman/ Lake Township boundary in Lake Township. The schools, most of the churches, the library, the fire, police, and government buildings, the post office, and most of the club buildings were located in this area.
The major residential areas in Bridgman were several subdivision developments on the cast side of town, one west of Red Arrow Highway among the dunes, and an additional private residential development (partially summer-homes) in the dunes area west of the Red Arrow Highway in Bridgman. In Lake Township, there were residential subdivisions along the town's raain east-west roads and private residential developments in the dune areas both north (almost exclusively surnmer residents) and south of the D. C.
Cook site. In addition, there were clusters of residences scattered along the roads throughout the Study Area. Residential density dropped rapidly to a scattered rural residential pattern in the eastern and southern portion of Lake Township. Both industrial and higher density residential development in Lake Township was severely constrained by the high water table and the poor drainage characteristics of much of the land in Lake Township. In the absence of a sewer system, this prevented construction of buildings with basements and necessitated large lots.1 (Building inspectors, Lincoln Township and Bridgman, personal communication,1979; Lake Township Planning Commission, 1979:18.)
The commercial residential facilities and multifamily units in the Study Area were located primarily along the Red Arrow Highway and Shawnee Road, where several apartments and motel / hotels and a nursing home were located.
1 Approximately 72 percent of Lake Township was classified as either poorly drained or somewhat poorly drained; and approximately 98 percent was identified as severely restricted for dwellings with basements. Large lots were necessary to provide an adequate drainage field for septic tanks. This characteristic also prohibited the development of mobile home parks. (Lake Township Planning Commission, 1979; Supervisor of Lake Township, personal communication,1979.)
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In gtneral, the trend in the Study Area between 1960 and 1980 was for additional or more extensive development of areas already zoned and utilized. During the study period, the density of residential development increased in the dunes area, in downtown Bridgman, and in the subdivided areas extended south and eastward.
6.2.2 Population Distribution 6.2.2.1 Berrien County The population of the county was not evenly distributed (see Table 3-1). Between 1960 and the late 1970s, there was a persistent shift of residential development out of the major urban centers of the county (Benton Harbor, St. Joseph, and Niles) into townships and adjacent rural areas. Nevertheless, in 1970, the northern half of Berrien County had about 111,000 people, or 68 percent of the total county population. The three urban areas (Benton Harbor, St. Joseph, and Niles) together had a population of 96,750 people, or 59 percent of the county total. Throughout the study period, this shift from urban center to neighboring areas continued, but at a much slower pace, as the growth in the county itself diminished substantially.I In general, however, no major shif ts in population distribution occurred in Berrien County between 1967 and 1978 (Berrien County Planner, personal communication,1979).
6.2.2.2 Study Area Historically, the population of Lake Township had been considerably larger than that of Bridgman. In 1960, Lake Township had a population of 2,016, while Bridgman had a population of 1,454. Following World War II, however, Bridgman grew faster than Lake Township, and by 1975 the population of the city had surpassed that of the township, with 1,979 in Bridgman compared to 1,931 in Lake Township.
Both prior to and during the study period, residential development in the Study Area, therefore, fell into three bands that ran parallel to the lakeshore. The first, i
located in the dunes between Lake Michigan and Red Arrow Highway (bisected by the D.
C. Cook site) consisted of clustered residential development. These were mostly in private " associations" and many remained summer hemes th-oughcut the study period.
I The proportion of county land in farrns fell from over 71 percent in 1959, to 64 percent in 1964, to 60.2 percent in 1977 as a result of the combined effect of residential expansion and discontinuance of farm use. (Driker, 1968; Southwestern Michigan Regional Planning Commission, 1978:35.)
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The second, which ran east from the Red Arrow Highway past the Bridgman boundary, contained the most dense settlement in the Study Area. A majority of the year-round population in the Study Area lived in this area. The third, which made up the eastern segment of the Study Area, was composed of more scattered settlements with a more agricultural and rural residential distribution pattern. No major changes occurred in this distribution during the study period, although the number of permanent residences in the dunes area increased measurably.
6.3 Housing 6.3.1 Romino Prior to Construction of the D. C. Cook Station The housing characteristics of Berrien County reflected the economic and demographic trends of the county. By 1960, the county had substantial areas of high-density urban housing (some of which, as in Benton Harbor, was deteriorating), and also a considerable number of scattered agricultural residential and rural residential housing units, new suburban developments, summer homes, and small-town residential units.
(Driker,1967; Berrien County Planning Commission,1971.)
In 1960, there were 44,412 occupied housing units in Berrien County. By 1970, this figure had increased by 14.3 percent, to 50,758. In 1970, there were 1,231 occupied housing units in the Study Area. (Berrien County Planning Commission,1971.) Table 6-1 sumnsarizes the characteristics of the housing stock in the Study Area and Berrien County in 1970. In 1970, 67.7 percent of the occupied units in Berrien County and 68.6 percent of those in the Study Area were owner-occupied. In the Study Area,87.6 percent of all occupied units were single-unit structures; in Berrien County, 81.3 percent of all occupied units were single-unit structures. In Berrien County in 1970, 2.8 cercent of the year-round units were vacant-for sale or for rent.1 In the Study Area, this figure was 2.7 percent. (U.S. Bureau of the Census, 5th Count Tapes.) For comparison, in 1960 and 1975, the vacancy rates in Berrien County were 2.2 percent and 10.3 percent respectively. (Verway, 1979:84; U.S. Department of Commerce, 1962:175.)
I Homeowner vacancy rates were 1.3 percent, and rental vacancy rates were 7.1 percent. In 1974, these figures were 1.4 percent and 5.6 percent. (Berrien County Planning Commission, 1975:121.)
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TABLE 6-1 D.C. COOK NUCLEAR PLANT HOUSING CHARACTERISTICS STUDY AREA AND BERRIEN COUNTY 1970 Bridgman Lake Township" Study Area Berrien County Percent of Percent of Percent of Percent of Year-Round Year-Round Year-Round Year-Round Number Units Number Units Number Units Number Units Number of Householda 556 646 1,202 All Housing Units 675 806 1,481 59,647 Year-Round Units 675 748 1,423 55,094 Owner Occupied 410 60.7 566 75.7 976 68.6 37,301 67.7 Renter Occupied 169 25.0 86 11.5 255 17.9 13,457 24.4 TOTAL OCCUPIED 579 85.7 652 87.2 1,231 86.5 50,758 92.1
- Unoccupied Units U For Rent 26 3.9 5 0.7 31 2.2 1,031 1.9 For Sale 3_ 0.4 5_ 0.7 8_ 0.6- 496 0.9 TOTAL UNOCCUPIED 29 4.3 10 1.3 39 2.7 1,527 2.8 Units in Structure:
1 531 78.7 716 95.7 1,247 87.6 44,792 81.3 2 51 7.6 15 2.0 66 4.6 3,583 6.5 3-4 33 4.9 0 0 33 2.3 2,075 3.8 5+ 60 8.9 0 0 60 4.2 3,176 5.8 Mobile Homes 0 17 2.3 17 1.2 1,468 2.7 Bedrooms Per Unit:
! 0 0 0 0 924 1.7 1 78 11.6 94 12.6 172 12.1 6,447 11.7 2 186 27.6 219 29.3 405 28.5 18,738 34.0 3-5 360 53.3 449 60.0 809 56.9 28,862 52.4 aU.S. Census 5th Count data indicate a population in Lake Township of 2,253. This was revised progressively downwards, first to 2,146, then to an official figure of 1,959. The difference of 187 people is 8.7 percent of the 2,146 figure and indicates a difficulty with these data, since it is not known where the errors are relative to housing and geographic location. The difference is approximately 56 households.
Sources: U.S. Department of Commerce, Bureau of the Census, Census of Housing: 1970, Detailed Housing Characteristics, Final Report. HC(1)-824,1972; U.S. Census 5th count data tapes.
l Table 6-2 shows the distribution of the 1970 housing stock by age of the unit and by occupant status. As seen in this table, the number of renter-occupied units expanded particularly rapidly between 1965 and 1970. For example, of the 98 occupied units that were built between 1965 and 1970 in Bridgman, 73 units (74.5 percent) were renter-occupied in 1970. These 73 units constituted 43.2 percent of all occupied rental units in Bridgman in 1970 and represented an increment in rental units during the 1965-1970 period of 76 percent over the stock existing in 1964. Many of the rental units in the Study Area were located in Bridgman. In 1970, Lake Township had only 86 renter-occupied units-13.2 percent of the occupied units in the Township. Owners occupied 79.3 percent of all occupied housing units in the Study Area, a percentage only slightly higher than the 73.5 percent recorded for the county as a whole.
6.3.2 Changes in the Housing Stock during the Study Period The additional recorded plats and residential units constructed in Berrien County and the Study Area during the study period are shown in Table 6-3 and Table 6-4. In addition, Table 6-3 shows the number of recorded plats in Berrien County, Bridgman, and Lake Township from 1960 to 1978. As seen in this table, the number of new plats recorded annually in the county decreased from the early to mid-1960s through 1978. So few new plats were recorded in the Study Area that no trends were discernible.
Between 1969 and 1972, about 4,218 residential units were constructed in Berrien County. A high proportion of these, 43.7 percent, were in multiple-unit buildings. The 3,258 units added in 1970-1972 represented an increase of about 6 percent to the stock of year-round housing shown in the U.S. Census in early 1970 and a decline in the rate of expansion of the stock of residential units in the county. This reflected the slower rate of population growth occurring in the county during this period.
Between 1973 and 1978, about 5,855 residential units were constructed in Berrien County, of which 2,618 (44.7 percent) were in multiple-unit structures. These figures-indicating the construction of an estimated 11,033 residential units-only partially indicate the changes in the housing stock in Berrien County between 1968 and 1978, since they do not account for dernolished units or the addition of mobile home units. During the study period, the rapid expansion of mobile home units in Berrien County was consistent with national trends. A number of mobile home parks were opened in the Benton Harbor /St. Joseph / Lincoln Township /Baroda area during this period. (Berrien County Planning Commission,1978; mobile home park owners, personal communications, 1979.)
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TADLE OZ D.C. COOK NUCLEAR PLANT OCCUPIED HOUSING: YEAR BUILT AND TYPE OF OCCUPANCY STUDY AREA AND BERRIEN COUNTY
- 1970 Bridgman Lake Township Study Area Berrien County Percent Percent Percent Percent of of All Percent of of All Percent of of All Number Percent of Number Occupied Occupied Number Occupied Occupied Number Occupied Occupied of All Occupied Year of Unita Built Units of Units Built Units of Units Built Units Units Units Built Units in Year 1970 Units in Year 1970 Units in Year 1970 1970 1970 1949 or Before Owner 218 80.7 37.7 319 84.4 48.9 537 82.9 43.6 R enter 52 19.3 9.0 59 15.6 9.0 111 17.1 9.0 TOTAL 270 46.6 377 57.8 648 52.6 1950-1959 Owner 102 73.4 17.6 138 95.8 21.2 240 84.8 19.5 Renter 37 26.6 6.4 6 4.2 0.9 43 15.2 3.5 Cf TOTAL 139 24.0 144 22.1 183 23.0 1960-1964 Owner 65 90.3 11.2 53 91.4 8.1 118 90.8 9.6 Renter 7 9.7 1.2 5 8.6 0.8 12 9.2 1.0 TOTAL 72 12.4 58 8.9 130 10.6 1965-1970 Owner 25 25.5 4.3 57 78.1 8.7 82 48.0 6.7 Renter 73 74.5 12.6 16 21.9 2.5 89 52.0 7.2 TOTAL 98 16.9 73 11.2 171 13.9 TOTAL STOCK 1970 Owner 410 70.8 566 86.8 976 79.3 37,301 73.5 Renter 169 29.2 86 13.2 255 20.7 13,457 26.5 TOTAL 579 100.0 652 100.0 1,231 100.0 50,578 100.0 1965-1970 as Percent of 1949-1964 Stock Owner 25 6.5 57 11.2 82 9.2 l Renter 73 76.0 16 22.9 89 53.6 TOTAL 98 20.4 73 12.6 171 16.1
" Totals may not add exactly due to rounding.
Source: Mountain West Research, Inc.: 1980; based on U.S. Dept. of Commerce, Bureau of the Census, U.S. Census of Housing; 1970, Detailed Housing Characteristics, Michigan (Washington, D.C.: 1972) Final Report HC (1) - B24: Table 62; U.S. Department of Commerce, Bureau of the Census, 5th Count data tapes (1970 census).
TABLE 6-3 D.C. COOK NUCLEAR PLANT RECORDED PLATS IN THE STUDY AREA AND BERRIEN COUNTY 1960-1978 Bridgman Lake T.ownship Study Area Berrien County Prior to 1960 16 9 25 927 1960 1 0 1 29 1961 1 0 1 39 1962 0 0 0 24 1963 1 2 3 36 1964 1 0 1 23 1965 0 0 0 22 1966 0 1 1 20 1967 0 0 0 16 1968 1 0 1 12 1969 0 0 0 12 1970 0 1 1 6 1971 0 0 0 9 1972 0 0 0 7 1973 0 0 0 15 1974 0 0 0 10 1975 0 0 0 10 1976 1 0 1 8 1977 0 0 0 10 1978 1" 0 1 12 TOTAL as of 1978 23 13 36 1,247 Additional 1960-1967 4 3 7 209 Additional 1968-1972 1 1 2 46 Additional 1973-1978 2 0 2 65 TOTAL Additional 1968-1978 3 1 2 111 aTwo in 1978, one in 1980.
Source: Driker, 1973:VII-4; Berrien County Planning Office, personal communication, 1980; Berrien County Recorder of Deeds, personal communication, 1980.)
l 124
_ _ _ _ _ _ _ . _ _ _ _ _ o
TABl.E 6-4 d
D.C. COOK NUCLEAR PLANT HOUSING STARTS IN THE STUDY AREA AND BERRIEN COUNTY 1967-1978 Bridgman* Lake Township
- Study Area" Berrien County
- Multiple Multiple Multiple Multiple Single Family Total Single Family Total Single Family Total Single Family Total Family Units Units Family Units Units Family Units Units Family Units Units 1967 na na na na na na na na na na (960)c 1968 na na na 5 0 5 na na na na (960)C 1969 12 10 22 12 2 14 24 12 36 480C 480 C (960)C 1970 7 4 11 10 0 10 17 4 21 507 (523) 1,030 L 1971 9 12 21 9 0 9 18 12 30 627 (385) 1,012 g 1972 5 16 21 18 2 20 23 18 41 762 (454) 1.216 t 1973 11 63 74 17 0 17 28 63 91 638 1,861 1974 (1,223)d 14 0 14 9 0 9 23 0 23 600d 381 93g d 1975 6 0 6 18 0 18 24 0 24 56 2 (319) 881
- 1976 19 61 80 13 0 13 32 61 93 517 741 (224) i 1977 8 0 8 8 4 12 16 4 20 512 (373) 885 1978 7 64 b 71 13 6 19 20 70 90 408 (98) 506 TOTAL: 1969-1978 98 230 328 132 14 146 225 244 469 5,613 4,460 10,073
- Based on permits, which closely matched the actual construction.
b Permit issued in 1978, and some units constructed then, but completed in 1979.
C These were subsidized housing units. Between 1965 and 1970 an average of %0 resid ential units per year were authorized, of which about 90 were subsidized (Berrien County Planning Commission, 1975:121).
d lncludes subsidized housing; about 200 of the average 1,220 housing units authorized in Berrien County between 1970 and 1974 were subsidized units.
Source: Mountain West Research, Inc., based on Building Inspector Records,1980; Berrien County Planning Document,1979; U.S. Bureau of the Census, 1978:238; Berrien County Planning Commission, 1975:122.
I i
In the Study Area, about 130 new housing units were constructed between 1969 and 1972. The rapid expansion of Inultiple-unit structures continued during this period, although it was limited to Bridgman. About 48 percent of the 75 additional residential units constructed in Bridgman during the 1969-1972 period were in multiple-unit structures; although only four units in multiple-unit residential buildings were constructed in Lake Township during this period, such units accounted for almost a third of the residential units built in the Study Area. The 92 units constructed between 1970 and 1972 represented an increase of about 7.5 percent in the stock of year-round housing shown in the 1970 Census.
The same trend continued between 1973 and 1978 when 341 new residential units were constructed in the Study Area. During this period, 73.5 percent of the 253 additional units constructed in Bridgman were in multiple-unit structures, with the result that more than half (54.5 percent) of the additional units in the Study Area were in multiple-unit structures. Over the entire study period (1967-1978), it is estimated that about 500 residential units were built in the Study Area, of which approximately 250 (50 percent) were single-family dwellings. This represented a substantial shif t in the composition of the housing stock in the Study Area; in 1970, 87.6 percent of the year-round units had been single-unit structures.
Figure 6-1 shows the accumulated effects of the residential construction in Berrien County and the Study Area between 1968 and 1978. As seen in this graph, additional housing was added quite steadily in both the Study Area and Berrien County over the entire study period. In both the Study Area and Berrien County, a slightly greater increase occurred in 1972 and 1976, the years following the recessions of 1971 and 1975.
6.3.3 Effects of the D.C. Cook Station on Housing in the Study Area and Berrien County The effects of the D.C. Cook station on housing have been divided into three categories : (1) effects on the size of the housing stock through project-related demand and construction of new housing units; (2) effects on the characteristics of the housing stock through project-induced or facilitated upgrading / conversion of existing structures; and (3) effects on the housing market in terms of cost and availability of housing units.
i 126 4
500 -
M H 400 -
Z 3
0 -
_2 300 -
m 3
i E STUDY AREA
- u. 200 -
o e
W M
3 100-3 #% %
,/ %****~% ,, -- __
0 ---,' , , , , , i g g i 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 YEAR 11,000-10,000-9,000-8,000-m 7,000 -
3 j 8,000-a h 5,000- '
z
$ 4,o o o _ BERRIEN COUNTY z
W 8 3.000-2 3
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/ s % - ~~
0
, w " y -- - - ,_ _
I I I I I I 6 i 6 1 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 YEAR Cumulative Housing Unite Constructed Project-Related Demand for Housing FIGURE 6-1. Project-Related Demand for Housing and Cumulative Housing Units Constructed in Study Area and in Berrien County, 1968-1978.
127
t 6.3.3.1 Effects on the Size of the Housing Stock due to Project-Related Demand Based on the characteristics of the workers and the number of accompanying household members described in Chapters 4 and 5, the project-related demand for housing is estimated as shown in Table 6-5.I The estimated project-related housing demand in the Study Area peaked at 81 units in 1972 and declined to about 35 units in 1978. In Berrien County, the housing demand reached an estimated 903 units in 1972 and about 274 units in 1978. Figure 6-1 shows the relationship between the demand for housing units by project-related movers and the additional supply of housing in the Study i Area and Berrien County over the study period. As seen in this figure, little correspondence between these two elements is shown in either Berrien County or the Study Area.
These were indications that construction of some of the apartment buildings in the i Study Area was induced, or hastened, by the presence of project-related workers.
(Owner, Oakwood Apartments, personal communication, 1980; Manager, Lake Crest 1 Apartments, personal communication, 1979.) The rapid expansion of apartment complexes throughout the county during the 1965-1975 period indicates that the D.C.
Cook project may have served to accentuate or accelerate an existing trend. (Berrien County Planner, personal communication,1979.)
It should be noted that the local governments in both Bridgman and Lake Township had existing regulations prohibiting or restricting the establishment of mobile home parks. Although these regulations were reviewed during the study period, they were upheld by the residents and were strictly enforced. (Herald Palladium, 31 December 1969.) In two neighboring areas, Baroda Township and Lincoln Township, several mobile home parks were built or expanded during the study period and had a number of project-related residents. These decisions undoubtedly influenced both the number of units demanded and the impact of the project on the character of the housing stock in the i
l I
l 1These estimates assume that each married worker requires a housing unit, and that the number of " doubled-up" movers and two-worker households results in a housing demano per unaccompanied worker of 0.85 during the peak construction period (based on Mountain West Research, unpublished data,1980).
2 Between 1970 and 1977, there were 222 mobile home units added to the housing stock in Baroda Township.
128 1
TAELE 6-5 D.C. COOK NUCLEAR PLANT HOUSING REQUIREMENTS OF PROJECT-RELATED POPULATION 1968 TO 1978 Number of Housing Units 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 Study Area" 3 7 28 62 81 50 67 29 51 52 35 Berrien County b 30 82 330 723 903 524 716 222 518 517 274 abased on estimates of project-related population from Table 5-8. Average household size was estimated at 2.16 persons between 1968-1972 (175 persons in 81 households)-36 movers accompanied by families and 45 rnovers
> unaccompanied by households. Household size was estimated to increase at an annual rate of 0.051 from 1972 to 1978,
_ when it was 2.91 (102 persons in 35 households).
U b Based on estimates of project-related population from Table 5-8. The average household size was estimated at 2.43 between 1968 and 1972, increasing at an average annual rate of 0.033 to 1978 when it was 2.95.
Source: Mountain West Research Inc.,1980.
Study Area. (Mayor of Bridgman, personal communication,1979; Supervisor of Lake Township, personal communication,1979.)
6.3.3.2 Effects on the Housing Stock through Project-Related Upgrading or Conversion Both Bridgman and Lake Township had a sizeable stock of " summer" homes in 1967 and a few of these were rented to project-related movers. However, since many of the
" summer" homes in the Study Area were constructed for year-round use, little conversion or upgrading was involved. Similarly, although a few of the Study Area residents rented rooms or apartments in their homes to project-related workers, the effect of this rental activity on the housing stock was minimal. A relatively small percentage of local residents were employed in project-related employment. Consequently, the effects of project-related income on home improvements was estimated to have been minimal, and no measurable effect on the housing stock in the Study Area through upgrading or conversions was identified.
Only a very small percentage of the housing stock in Berrien County was affected by the project, either through movers or nonmovers (increased income), and no effect on housing stock characteristics was found to have resulted from the project.
6.3.3.3 Effects on the Housing Market Because the Study Area was close to the project site, the potential demand for housing by proj ect-related workers was substantial, particularly during the peak construction years. Rental units, particularly the few short-term rental units, were filled early in the project period, and the increased demand raised real estate activity in the Study Area, especially during the first half of the study period. (Study Area realtors, motel m anagers, building inspectors, personal communications, 1979.)
However, the comparatively large pool of housing within easy commuting distance of the project site and the relatively small number of workers moving into the area for project-related work prevented a major impact on either housing cost or availability.1 Competition among communities was sufficient to prevent large cost effects in either the Study Area or Berrien County.
1 The Bridgman-Southwestern Michigan area had a consistently lower average selling price for residential units during the 1970s than did the Lakeshore and St. Joseph areas (about $3,000 in 1974 and $6,000 in 1978). (Southwestern Michigan Board of Realtors, personal communication,1979.)
130
Summary Neither Bridgman nor Lake Township had the rapid expansion of population between 1960-1979 that was evident in some neighboring areas l despite their favorable tax status and proximity to the project site.2 One reason given for this was the prior development of the attractive residential areas (along the lakeshore) in both Bridgman and Lake Township. Another reason was that much of the available area in Lake Township was unsuitable for residential development due to lack of sewage disposal services. A third reason was the relatively high prices for lots in those areas having suitable soil conditions. (Building Supervisor of Lincoln Township, personal communication,1979; Bridgman realtors, personal communications,1979.)
Although some industrial development and expansion occurred in Bridgman/ Lake Township in the latter half of the 1960s and early 1970s, the concentration of employment remained centered in the Benton Harbor-St. Joseph area. This lef t Bridgman and Lake Township on the periphery of the majority of the employment-driven migration in the county. In addition, prior to the mid-1970s, the Bridgman school system did not have a very good academic reputation, so outsiders with children of ten chose to settle in other areas. As a result of substantial upgrading during the 1970s, the school system in the Study Area became reasonably competitive academically with the Lakeshore (Lincoln-Baroda) and St. Joseph school systems and very competitive in terms of facilities and programs. The area then began to attract people who previously would not have located there. The price of developable land in Lake Township was also reported to be comparatively higher than in other nearby areas and Bridgman had limited land available for development. (Building Inspector of Lincoln Township, personal communication,1979.)
The very low property tax rates in the Study Area, especially in Lake Township, did not offset these other factors sufficiently to cause a population or housing boom.
However, in 1979, Lake Township was developing a sewage system plan to be imple-mented in the early 1980s which was expected to substantially affect Lake Township's I
L ncoln Township, for example.
2 Discussed in the next chapter.
131
relative desirability for residential subdivision development and housing and, consequently, its population growth.
The project-related demand for housing peaked at about 81 units in 1972 in the Study Area. The size of this increased demand was small, only 5.4 percent of the total existing year-round housing stock in the Study. Area in 1972. Prior to the project, the quality of housing in the Study Area was sufficiently high to prevent major conversion or upgrading effects due to project-generated income or housing demand, and the capacity of the housing market to provide the additional units prevented large costs or availability effects. The project-related demand may have resulted in additional apartment construction in the Study Area or it may have merely hastened what would have occurred even without the project. The overall assessment must be that the project did not have major consequences for the Study Area in terms of settlement patterns or housing.
In Berrien County, the peak project-related demand of 903 units in 1972 was less than 2 percent of the housing stock in the county in 1970 and was relatively well dispersed among a number of communities. Consequently, the project had no measurable effects on county settlement patterns, housing characteristics, construction rates, housing cost, or housing availability.
132 4 _ _ _ _ _ _
CHAPTER 7: LOCAL GOVERNMENT AND PUBLIC SERVICES 7.1 Introduction 1
1 The purpose of Chapter 7 is to describe the basic structural components of the '
local governments in the Study Area, examine the source of revenues and the pattern of expenditures, indicate the level of services, and describe how specific service areas were s.ffected by the D. C. Cook facility. The objective is to focus on changes in sources of rsvenues, levels and patterns of expenditures, and provision of public services that rtsulted from the construction and operation of the D.C. Cook plant. The discussion is d: signed to highlight changes associated with significant social or political consequences rcther than to provide a detailed fiscal analysis of the Study Area and the Berrien County governments.
The discussion of public services focuses on employment and service trends in four areas: education, transportation, public safety, and social services. These services have b:en selected for separate focus because they have been found to be sensitive to tocioeconomic changes in the community, and are therefore suitable indicators of the public services effects experienced in the Study Area.
7.2 Government Structure 7.2.1 Berrien County During the study period, the Berrien County government was responsible for the coordination and supervision of 66 separate jurisdictional units and the provision of errvices to a population of over 160,000 people. In 1970, the number of local government employees in Berrien County was almost 5,500. To handle this complexity and level of c.ctivity, the Berrien County government was organized into numerous departrnental commissions and committees, many of which were service oriented. The county was headed by a board of commissioners. For representative purposes, the county was divided into 13 commissioner units; one commissioner was elected from each district.
The board served as the policy-making body of the county and was responsible for the administration of county departments as well as for a number of specific decisions and duties within the county. These included:
(1) Formulating and effecting ordinances and regulations at the county level; (2) Preparing and supervising annual county budgets;
! (3) Appointing county boards and commissions; i
133
. _ _ - _ . ____x._-_________-__ . _ _ _ _ _ _ .
l (4) Approving personnel policies for employees; (5) Declaring states of emergency; (6) Operating and maintaining county buildings; (7) Administering federal and state programs such as CETA; (8) Planning for both land use and economic development; and (9) Providing services for the enrichment of life (Source: Berrien County Planning Commission,1978; Berrien County Planning Commission, personal communication,1979; St. Joseph League of Women Voters,1977).
During the study period, the greatest changes in the county's structure resulted from the increase in federal and state programs administered at the county level (CETA, for example), the additional effort expended on planning in order to qualify for federal revenue-sharing and grant programs, and the increase in legal- and court-related activities. For example, the Southwestern Michigan Regional Planning Commission (SMRPC) was formed in 1974 by the county board of commissioners of Berrien, Cass, and Van Buren counties to encourage a region-wide approach to economic development, water quality management, and transportation, criminal justice and comprehensive planning. The county and many municipalities formed planning commissions to develop comprehensive economic development plans. (Berrien County Planning Commission, 1978; Driker,1976.)
7.2.2 The Study Area The Study Area is composed of two separate and distinct local jurisdictions-the City of Bridgman and Lake Township. Bridgman is one of 8 cities in Berrien County, while Lake Township is one of 22 such jurisdictions in the county. A township is a subcounty area with the status of a legal municipality. In the State of Michigan and in Berrien County, townships, towns, and cities have a relatively high degree of administrative autonomy in such matters as regulating taxes (through millage rate specification, for example), governmental structure, zoning and planning policy, and local public services. The county, nevertheless, exerts influence on the subcounty jurisdictions through political ties and the provision of services, facilities, and planning expertise.
7.2.3 Bridgman Throughout the study period, Bridgman had an elected, unpaid mayor / city commissioners system of government. The mayor served as the chief executive officer of the city. A 5-to-7 member city commission formed the elected legislative body. The local government operated through both scheduled and ad hoc meetings of government 134 n -
officials and appointed committees. There were also regularly scheduled public meetings. While the mayor historically supervised the operation of city government cctivities, in 1977, a professional city superintendent was employed to coordinate cdministrative affairs.
Zoning and land use control were oper,ational prior to the study period. Until 1967-68, when the positions were abolished, Bridgman had two nonprofessional city supervisors. Throughout the study period, Bridgman had an appointed planning board (established in 1961) that worked with the Berrien County Commission and the Southwestern Michigan Regional Planning Commission to formulate community development plans. In addition, the city had its own police and fire departments, city cttorney, city engineer, and water superintendent. During the study period, the role of the planning board and legal counsel increased in importance, as decisions for city action on issues such as sand-mining in the dunes were made necessary by conflicts between industrial and residential interests.
7.2.4 Lake Township Lake Township's public administration consisted of an elected township supervisor,1 and a two-member board of trustees.2 The internal structure of the township government was considerably modified during the study period. Until 1969-1970, when it was abolished, the township had a four-member zoning board.3 7,1977, 1978, a seven-member planning commission was established, as was a two-member board of review, and the p,osition .,
of water superintendent. Many of the services (emergency health services was one exception) in the township were provided by the county (for example, road and police services). Between 1973 and 1974, the number of constables was reduced from four to one, and in 1976 the township established a police force in conjunction with Baroda Township, which replaced the constable positions.
)
Nevertheless, the township government maintained itself as an essentially informal organization, with primarily part-time office holders who worked out of their I
( homes. This informality was preserved despite enormous increases in township budget.
1 The same person held the position throughout the study period.
2 The same two people held these positions throughout the study period.
3 After 1970, the board of trustees was responsible for zoning.
135
' a
i 7.2.5 The Bridgman School District The Bridgman School District, as shown in Figure 7-1, encompasses all of Bridgman, the great majority of Lake Township, and a small portion of Baroda Township. The Bridgman School District was one of the sixteen districts that comprised the Berrien County Intermediate School District. A board of education served as the policy-making body for the entire intermediatet school district. In addition, there was a school board for each separate school district; board members were elected. Because the school districts levied taxes much as a municipality and because the school district tax rate constituted a large share of the total tax burden of Study Area residents, the Bridgman School District budgets, in terms of revenues, are discussed in a manner parallel to that of Bridgman and Lake Township.
7.3 Budgets for Major Government Jurisdictions during the Study Period The budgets of four taxing jurisdictions-Berrien County, Bridgm an, Lake Township, and Bridgman School District-reveal much about the resource base and governmental priorities in these areas. Revenues to the general fund of each jurisdiction are analyzed to identify major shif ts in resource availability-either in magnitude or in source-with special attention to the implications of the presence of the D.C. Cook Nuclear Plant. Expenditures are then examined for the three municipal jursidictions to identify major shif ts in the magnitude of the proportion of funds allocated to various categories of public services.
7.3.1 Revenues 7.3.1.1 Total General Fund Revenues and Revenue Sources over the Study Period The annual total revenues received by each of the jurisdictions increased substantially over the study period. Property taxes constituted an important source of locally generated revenues for all jurisdictional units throughout the study neriod.
Revenues were also received from nonbusiness licenses, permits, and fees, from state 4 sales and income tax diversions, and from other miscellaneous sources. The total revenues, the principal revenue sources, and the millage rates for Berrien County, Bridgman, Lake Township, and the Bridgman School District are summ arized in subsequent tables and subsections in this chapter. As can be seen, property taxes, state diversions, and federal and revenue-sharing funds were the principal sources of revenues in each jurisdiction. The pattern of total revenues and revenue sources for each jurisdiction is discussed separately.
l 136
^ '
FIGURE 7-1. BRIDGMAN SCHOOL DISTRICT BOUNDARY Colomo Watervliet Hogar
}
Township Boundaries %
--- Lake Township h Bridgman School District S t.
Joseph h
Bridgman City Sodus Pipestone y St. Joseph / Benton Harbor Lincoln Niles Royalton
@ D.C. Cook Nuclear Plant ,[
t i Sarodo l Oronoko Berrien 0 1 2 3 4 5 6 ammc=amuccumcm Miles
~ ~ . __
Nile s c
Buchanan Wee saw N Chikaming :i!I
..: i:i ^
Now Oaks Nife Galien 8erirand BufIalo Source: Berrien County Planning Commission, August 1976, 'Overall Economic Development Plan for 8errien County, Michigan, 1976-1977 Annual Report ".
137 6 n- - - - - - - - - - - - -
l 7.3.2 Revenues by Jurisdiction 7.3.2.1 Berrien County As shown in Table 7-1, annual revenaes to Berrien Countyl in constant (1972) dollars more than doubled during the 1967-1978 period, increasing from $4.0 million in 1967 to $8.2 million in 1978. This was an average annual increase of 6.8 percent. As shown in Table 7-1, revenues increased, in constant dollars, from 1967 to 1969, then fell in 1970. From 1970 to 1973, Berrien County revenues increased, then dropped almost to 1970 levels in 1974. Between 1974 and 1978, revenues gradually increased, but by 1978 they had not reached (in constant dollars) the peak of $9.1 million attained in 1973. In constant 1972 dollars, per capita revenues in the county increased from $40.56 in 1970 to
$49.05 in 1978, reflecting a greater average annual rate of increase in revenues (2.4 percent) than in population (0.3 percent) during this period.
In 1967, property taxes accounted for about 74 percent of the total revenues to Berrien County. By 1972, this percentage had dropped to about 70 percent. In 1972, state funds contributed about 10 percent and federal funds about 5 percent of total revenues. The decline in importance of property taxes continued through 1978, when about 51 percent of total funds derived from property taxes. State funds accounted for 9 percent and federal funds for 11 percent of total revenues in 1978. This shif t in revenue sources occurred despite an increase in state equalized assessed valuation from $674.5 million in 1967-68 to $820.4 million in 1972-73 and $892.1 million in 1978-79 (constant 1972 dollars), an annual rate of increase of 2.6 percent.
As shown in Table 7-2, between 1968 (the earliest year fc,r which information is available) and 1978, the millage rate for county taxes remained relatively stable, increasing during this ten year period from 4.823 to 5.425.2 The state equalized assessed valuation of the D.C. Cook plant increased from $46.6 million in 1972 to $141 million in 1975 to $276 million in 1978. The project contributed an increasing amount of tax payments and accounted for an increasing percentage of the total taxable base and revenues of the county. In 1972, the tax payments on the D.C. Cook plant were I Includes General Fund and Child Care, Health, and Social Welfare and Direct Relief, that are self-governed departments, but does not include the Berrien Intermediate School District, or any of the county commissioners.
2 Includes Lake Michigan College and the County School.
138
- - - - - - - - - - .. A b
TAELE 7-1 D.C. COOK NUCLEAR PLANT BERRIEN COUNTY REVENUE SOURCES 1967-1978 (Current Dollars)
Local _
Other State Licenses, Income Federal Fiscal Property Permits, Tax Revenue Grand Constant Year Taxes & Charges Diversion a Sharing c Total 1972 Dollars 1967 $2,400,000 na na na $3,237,450 $3,982,103 1968 2,644,595 na $356,479 na 4,623,669 5,465,330 1969 3,794,900 na 555,688 na 6,542,205 7,392,322 2,676,600 na 616,329 na 6,151,000 6,649,730 3 1970 3,338,532 na 550,251 na 6,811,532 7,051,275 1971 4
1972 5,373,200 $1,210,453 751,620 $349,127 7,684,400 7,684,400 1973 4,163,500 3,645,339 833,660 962,401 9,604,900 9,104,171 1974 4,597,300 1,357,408 971,239 9,601,453 7,886,400 6,746,279 1975 5,212,800 1,570,696 981,066 1,030,338 8,794,900 6,952,490 1976 5,836,900 2,084,211 958,136 1,261,353 10,140,600 7,613,063 1977 6,069,500 2,441,053 1,090,801 1,489,346 11,090,700 7,882,516
- 1978 6,344,000 3,549,704 1,098,991 1,342,205 12,334,900 8,206,853 INDIVIDUAL REVENUE SOURCES, SHARE OF TOTAL FOR SELECTED YEARS 1967 74.1 % na na na 100.0 %
1972 69.9 % 15.8 % 9.8% 4.5% 100.0 %
1978 51.4 % 28.8 % 8.9% 10.9 % 100.0 %
Source: Census of Governments,1967 and 1972; Department of Commerce, County Official Records, 1970-1978; I Verway,1979; Berrien County Treasurer, personal communication,1980.
TABLE 7-2 BERRIEN COUNTY ASSESSED VALUATION, MILLAGE RATES, AND D.C. COOK TAX PAYMENTS 1967-1978 (Current Dollars)
Property c Percent e Percent e Total" County Taxes to County County State Total County b Fund County Fund Fund Equalized Total b Property Budget Property Fund Property Revenues Fiscal Assessed Millage Tax Millage Tax by D.C. Tax by Tax by Year Valuation Rate Levies Rate Levies Cook D.C. Cook D.C. Cook 1967 na na na na $2,510,958 na na 0.0 1968 $548,329,881 na na 4.823 2,644,595 na na 0.0
- 1969 574,172,877 na na 6.61 3,794,900 1,807 0.0 0.0
$ 1970 599,184,012 na na 4.925 2,951,600 29,357 1.0 0.5 705,079,298 8.354 $5,890,232 5.125 3,613,532 94,975 2.6 1.4 1971 1972 745,426,614 9.053 6,748,347 5.125 3,820,300 278,615 7.3 3.6 820,375,843 9.298 7,545,817 5.425 4,453,500 492,929 11.1 5.1 1973 1974 900,894,897 9.230 8,315,260 5.425 4,887,300 689,904 14.1 8.7 !
1975 1,006,966,017 9.373 9,438,292 5.425 5,462,800 842,427 15.4 9.6 1,122,022,809 9.354 10,495,401 5.425 6,086,900 1,237,320 20.3 12.2 1976 1977 1,146,441,831 9.324 10,689,424 5.425 6,219,500 1,314,769 21.1 11.9 1978 1,197,057,062 9.324 11,161,360 5.425 6,494,000 1,529,803 23.6 12.4 1,340,798,235 8.854 11,871,428 na na na na na 1979 aBerrien County Equalization Reports show the assessed valuation to be one year earlier than the county budget figures. County budget figures have been used.
bIncludes special units such as County School, Lake Michigan College, and so on.
C Excludes Lake Michigan College and County School, which ranged from $719 in 1969 to $154,227 in 1972 to
$921,758 in 1978.
Source: Annual Berrien County Equalization Reports, Tax Equalization Office, Berrien County,1979; I&ME, personal communication, 1979, 1980; Berrien County Board of Commissioners, Final Budget and Expense Reports,1967-1978.
$278.6 thousand,7.3 percent of the total property taxes levied for the county. As shown in Table 7-2, these payments rose steadily through the study period to $1.5 million, or 23.6 percent of total property taxes levied in 1978. The percentage of total county revenues due to the D.C. Cook plant also increased, rising from 0.5 percent in 1970 to 3.6 percent in 1972 and 12.4 percent in 1978. By 1978, therefore, the D.C. Cook project was contributing a substantial component of the general funds used by the county government. If the D.C. Cook plant had been removed from the tax rolls in 1978, the state equalized assessed valuation of the county would have been reduced to $920.2
(
million. To raise the same property tax revenues from this tax base in 1978, a millage rate of 7.057 instead of 5.425 would have been required.
7.3.2.2 Bzidgman In Bridgman, total annual revenues in constant 1972 dollars increased from
$88,011 in 1967 to $237,910 in 1978, an average annual rate of increase of 9.5 percent over the 1967-1978 period. This change represented an increase in revenue per capita of about $49.09, from an estimated $56.09 in 1967 to an estimated $105.18 in 1978, or an increase of 87.5 percent (constant dollars).I As shown in Table 7-3, revenues increased somewhat erratically during the study period, dropping in 1970-1971 and 1972-1973, with the most rapid increase occurring between 1976 and 1978, when they rose from $104,752 to $237,910 (constant dollars). Between 1974 and 1978, revenues to the city of Bridgman increased at an average annual rate of 19.7 percent.
Property taxes constituted the principal source of revenues to Bridgman throughout the study period. As shown ir. Table 7-3, property taxes accounted for 71.8 percent of total revenues in 1967, 69.3 percent of total revenues in 1972 and 68.9 percent of total revenues in 1978. State funds, which contributed 21.8 percent of the total in l 1967 and 22.2 percent in 1972, declined to 18.0 percent in 1978. The value of state revcnues was small throughout the study period, exceeding $40,000 (in constant 1972 dollars) only in 1978.
As shown in Table 7-4, the millage rate in the City of Bridgman increased during the study period. In 1967, the millage rate was 9.0. In 1972 it had declined to 8.0, but by 1978 it had risen to 15.0. The state equalized assessed valuation of Bridgman properties 1
Based on estimated population of 1,569 in Bridgman in 1967 and 2,262 in 1978. ,
(
(
1 141 l
TABLE 7-3 D.C. COOK NUCLEAR PLANT BRIDGMAN GENERAL OPERATING REVENUES 1967-1978 (Current Dollars)
Local State Total State Revenues Sales Intangibles (Constant Fiscal Praperty Other Tax Income and Total 1972 Year Taxes
- Local Diversion Tax Other Revenues Dollars) 1967 $51,4C $ 4,457 $13,915 -
$1,774 $ 71,553 $ 88,011 1968 51,902 5,075 14,336 -
1,759 73,072 86,374 g 1969 59,521 7,666 16,067 $ 4,595 1,759 89,608 101,251 N 1970 71,484 1,516 16,895 5,874 1,774 97,543 105,452 1971 68,888 4,827 16,911 5,053 1,818 97,497 10.0,929 1972 83,735 10,333 19,448 4,945 2,398 120,859 120,859 1973 70,663 3,422 20,927 3,860 4,497 103,369 97,980 1974 96,004 6,011 -
33,363 -
135,378 115,807 1975 111,138 8,465 -
37,925 -
157,528 124,528 1976 95,020 7,410 -
37,100 -
139,530 104,752 1977 191,074 21,196 -
45,111 -
257,381 182,929 1978 246,315 46,898 -
64,366 -
357,579 237,910 INDIVIDUAL REVENUE SOURCES, SHARE OF TOTAL FOR SELECTED YEARS 1967 71.8% 6.2% 19.3 % -
2.5% 100.0 %
1972 69.3 % 8.5% 16.1 % 4.1% 2.0% 100.0 %
1978 68.9 % 13.1 % -
18.0 % -
100.0 %
aIncludes delinquent taxes and interest and penalties on taxes.
Source: Bridgman Annual Financial Reports, 1966-1979, Bridgman City Clerk, personal communication,1979 1
1 -
TABLE 7-4 D.C. COOK NUCLEAR PLANT EQUALIZED ASSESSED VALUATION AND TAX PAYMENTSa BRIDGMAN 1967-1978 (Current Dollars)
Total 4 Equalized City Property Fiscal Assessed Millage Property Taxes on Percent Total Year Valuation Rate Taxes D.C. Cook D.C. Cook Budget 1967 $ 5,705,748 9.0 $ 51,407 0 0 $ 68,885 1968 6,028,132 na 51,902 0 0 78,785 1969 6,381,405 na 59,521 0 0 81,495 1970 8,097,240 na 71,484 0 0 98,663 1971 9,446,303 na 68,888 0 0 96,419 1972 10,269,854 8.0 83,735 0 0 112,188 1973 10,532,533 na 70,663 0 0 103,369 1974 12,288,946 na 96,004 0 ,0 135,378 1975 15,184,670 na 111,138 0 0 157,528 1976 14,536,600 12.0 95,020 0 0 186,126 1977 16,956,069 na 191,074 0 0 257,381 1978 17,736,300 15.0 246,315 0 0 357,579 "As equalized by the State of Michigan (50 percent of market value).
Source: Annual Berrien County Equalization Reports, Tax Equalization Office, Berrien County,1979.
t 143
l l
increased threefold between 1967 and 1978, rising from $5.7 million in 1967 to $10.3 million in 1972 and $17.7 million in 1978, primarily a result of industrial expansion in the city. Because the D.C. Cook plant site was outside the jurisdictional boundaries of the city, Bridgman received no property taxes directly from the project. Nevertheless, as noted below, the D.C. Cook plant made a substantial contribution to the reduction of the property tax burden on Bridgman residents by its effect on the Bridgman School District property tax millage rates.
7.3.2.3 Lake Township Total annual revenues to Lake Township increased (in constant dollars) almost 16 times between 1968 (the earliest year for which data are available) and 1978 to
$ 560,97 5. As shown in Table 7-5, the greatest percentage jump in property tax revenues occurred between 1974 and 1975, when a millage for the water system was imposed. The annual per capita revenue (in constant 1972 dollars) for Lake Township rose from about
$16.63 in 1968 to about $280.91 in 1978,1 an increase of 1,689 percent.
Property taxes and sales taxes were the principal sources of revenue in Lake Township through 1973. In 1972, revenues from property taxes were about 1.5 times those from sales tax and constituted 49.2 percent of the total township revenues. By 1978, property taxes dominated the revenue sources of the county, making up 96 percent of the total revenues to the township.
As shown in Table 7-6, the millage rates in Lake Township increased by 1.55 mills between 1974 and 1975, resulting in the dramatic increase in property tax receipts discussed above. The millage rate rose to 4.0 in 1978, an increase of 3 mills over the 1972 rate of 1 mill.
The state equalized assessed valuation of Lake Township properties increased from $6.5 million in 1967 to $307.8 million in 1778. By 1978, the D.C. Cook plant accounted for 90 percent of the total assessed valuation in Lake Township.2 1
Based on population estimate in 1967 of 2,134 and in 1978 of 1,997.
2 It is interesting to note the comparison between the assessed valuation in Lake Township and Bridgman in 1967 and 1978. In 1967, the ratio was 1.15 (Lake Township /Bridgman). In 1978 it was 17.35.
144
l TABLE 7-5 D.C. COOK NUCLEAR PLANT LAKE TOWNSHIP REVENUES 1968-1979 l (Current Dollars)
Local State Property" Intangible Federal Taxes Other b Sales Income and Revenue Total Constant Year Collected Local Tax Tax Other Sharing C Revenues Dollars 1968 $35,488 1969 1970 1971 $ 18,339 $2,244 $23,426 $8,145 $4,011 - $56,165 $60,718 Z 1972 33,969 1,291 22,844 6,825 4,161 69,090 71,521
- 3,664 1003 421 100,421 1973 65,386 1,549 25,290 4,532 1974 92,043 3,301 27,705 563 6,181 47,765 177,558 168,301 1975 342,431 2,199 -
na na 15,952 1976 442,114 -
na na na 1977 796,153 -
na na na 1978 809,419 -
na na na 843,145 560,975 1979 981,721 82,875 -
na na na ,
INDIVIDUAL REVENUE SOURCES, SHARE OF TOTAL FOR SELECTED YEARS 1972 49.2% 1.9% 33.1% 9.9% 6.0% na 100.0 %
1978 96.0%
Includes fees, delinquent taxes, and so forth.
b Liquor fund, zoning and building permits, and so forth, C
i Federal revenues for construction of water system. The plans for the water system were drawn up in 1972.
Source: Lake Township Statement of Cash Receipts and Disbursements, Lake Township Clerk, personal communication,1978.
TABLE 7-6 D.C. COOK NUCLEAR PLANT EQUALIZED ASSESSED VALUATION AND TAX PAYMENTS LAKE TOWNSHIP 1968-1980 (Current Dollars)
Total Percent Property Assessed Equalized of Township Property Taxes on Value D.C.
Assessed D.C. Cook County Millage Taxes Cook As as Percent Year Valuation Total D.C. Cgok Total Rate Levied" Plant Equalized SEV Budgeted 1968 $ 6,540,583 1.19 na na na na
- 1969 6,907,327 na $ 30,240 1.20 na na na na na
$ 1970 6,197,624 77,766 1.28 na na 346 na na 56,652 1971 14,925,132 2.12 0.804 $ 12,000 $ 6,096 na na 82,686 1972 27,515,230 3.69 1.000 27,515 22,703 na na 102,686 1973 58,421,845 7.12 1.000 58,428 61,601 $46,555,310 79.7 128,160 1974 96,219,510 12.81 1.000 96,220 105,715 1975 133,661,302 na na 189,572 15.85 2.55 340,836 323,880 na na 656,429 1976 163,078,618 14.53 2.70 440,312 417,145 141,465,387 1977 240,490,600 87.0 623,015 20.98 3.3 793,619 736,057 na na 1978 252,872,825 774,697 21.13 4.0 1,011,491 759,635 na 1979 307,758,250 na 766,753 22.95 3.2 984,826 947,403 276,887,400 90.0 1980 373,182,300 766,753 24.42 na - -
aEstimated, based on beginning-of-year assessment estimates.
Taxes paid for I&ME fiscal year, which does not correspond to tax year.
Source:
Annual Berrien County Equalization Reports, Tax Equalization Office, Berrien County,1979; I&ME, personal communication,1979.
The importance of the D.C. Cook plant to town finance is illustrated by the fact that in 1978 a millage rate of 31.9 rather than 3.2 would have been necessary to obtain the same revenue in the absence of the plant. This increase in the millage rate of 27.7 would have meant. an increase in an average homeowner's annual tax payments of $341 (constant 1972 dollars).1 7.3.2.4 Bridgman School District The Bridgman School District received property taxes from property owners in Bridgman, Lake Township, and Baroda. In addition, the school district received state 2
school aid into the general fund and both state and federal monies for specified programs. As shown in Table 7-7, the total revenues to the Bridgman School District increased dramatically over the study period. In 1967, school district revenues were
$458.7 thousand (constant 1972 dollars). Property taxes and state school aid contributed cpproximately equivalent amounts (44.6 and 40.7 percent, respectively) and together tecounted for 85.3 percent of all revenues. Property owners in Bridgman and Lake Township paid 30.7 and 19.8 percent, respectively, of the total revenues in 1967, while the federal contribution to total revenues was 4.3 percent.
By 1972, the school district's revenues had increased to $879.3 thousand. Of this, 76.2 percent was from property taxes,16.6 percent was from state aid, and 1.6 percent was from federal funds, illustrating the increasing importance and size of property tax payments to the district.
Total revenues rose to $1.7 million in 1978, and the trend for a greater proportional contribution from property taxes and from Lake Township properties continued. In 1978, property taxes accounted for 88.2 percent of the total revenues, while state aid dropped to 3.6 percent and federal funds to only 1.0 percent of the total.
1 Assuming an average SEV per homeowner of $18,000. Based on Southwestern Michigan realtor figures.
2 State School Aid was distributed according to a formula, the important element of which was the state equalized valuation per student-that is, the tax base available to the school district per pupil.
l 147
TABLE 7-7 BRIDGMAN SCHOOL DISTRICT GENERAL FUND AND SPECIAL PROGRAM REVENUES 1967-1978 (Current Dollars)
Property State Taxes for School TOTAL General Aid (Constant Fund Other a (Driver 1972 FY (Collected) Local Education) Federal Misc. TOTAL Dollars) 1967 $ 166,433 $ 32,512 $ 151,729 $ 16,020 $ 6,252 $ 372,946 $ 458,729 1968 241,262 36,157 178,317 11,405 1,019 468,160 553,382 1969 277,671 38,644 190,217 9,596 991 517,119 584,315 1970 300,323 42,755 212,221 11,720 688 567,707 613,738 1971 471,496 46,731 197,148 13,736 755 729,866 755,552 g 1972 669,774 44,388 146,032 13,999 5,160 879,353 879,352 m 1973 972,111 63,931 24,495 11,763 207 1,072,507 1,016,595 1974 1,201,514 95,556 45,153 11,003 3,653 1,360,879 1,164,139 1975 1,213,062 109,078 59,151 11,282 29,436 1,422,009 1,124,118 1976 1,483,446 101,742 97,850 C 19,938 100,556 1,803,532 1,354,003 1977 2,090,185 C 101,000 b 71,276 21,468 42,856 2,326,785 1,653,721 1978 2,220,874 90,856 89,812 C 26,030 89,590 2,517,162 1,674,758 INDIVIDUAL REVENUE SOURCES, SHARE OF TOTAL FOR SELECTED YEARS 1967 44.6 % 8.7% 40.7% 4.3% 1.7% 100.0 %
1971 64.6 % 6.4% 27.0 % 1.9% 0.1% 100.0 %
1972 76.2% 5.0% 16.6 % 1.6% 0.6% 100.0 %
1978 88.2 % 3.6% 3.6% 1.0% 3.6% 100.0 %
" Includes interest and investments.
b Estimated.
C In 1976, $59,499 was from Senior Citizens Nutritional Program, and $32,476 was from State School Aid; in 1978, included driver education, vocational education, transportation, and reading support.
Source: Roberts & Merkel, Bridgman Public Schools, Report of Examination, Berrien Springs, 1966-1979.
l l .
In constant 1972 dollars, property tax revenues rose from $204.7 thousand in 1967 to $669.8 thousand in 1972 and $1,477.6 thousand in 1978, while state aid dropped from
$186.6 thousand in 1967, to $146.0 thousand in 1972, and to $59.8 thousand in 1978.
Federal funds remained almost unchanged in magnitude-$19.7 thousand in 1967, $14.0 thousand in 1972, $17.3 thousand in 1978-although it declined in relative importance.
Revenue per capita for residents of the school district in l constant 1972 dollars rose from approximately $124 in 1967 to about $393 in 1978, reflecting the 11.1 percent average annual rate of increase of revenues over this period.
As shown in Table 7-8, the state equalized valuation of property in the Bridgman School District rose (in constart 1972 dollars) from $11.9 million in 1967,2 to $35.8 million in 1972 and $177.8 million in 1978. Because of a mismatch of reporting periods, tl$e figures previously shown are not precise, but clearly show the role of the D.C. Cook plant in the increased state equalized valuation of the Bridgman School District and in the monies available to the school for operating expenditures. Since 1971, property taxes on the D.C. Cook plant have comprised well over 65 percent of all property taxes paid to the school district. In 1978, over 90 percent of the property taxes to the school district were frorn the tax on the D.C. Cook plant. (I&ME, personal communications,1979 and 1980; Bridgman School Superintendent, personal communication,1979.)
As a result of the very large expansion of assessed value of property in the school district, the millage rate for the Bridgman School District declined dramatically during the study period. In 1967, the millage rate for the school district was 21.78. It rose steadily to 1971, when it peaked at 29.346. From 1972 through 1978, the school millage rate declined each year, to 26.326 in 1972 and 11.539 in 1978. For comparative purposes, in 1977, the school millage rates in Bridgman and the surrounding districts were:
Bridgman-11.626; St. Joseph-35.616; Lakeshore-29.276; and River Valley--25.46.
Again, the importance of the D.C. Cook plant to local government finance can be illustrated by the fact that, without the D.C. Cook plant, a millage rate in excess of I
Estimated school district population was 3,703 persons in 1967 and 4,259 persons in 1978.
2 These figures come out in May of the year to which they apply and consequently underestimate the average assessed valuation for areas with properties increasing in value over the year.
149
TABLE 7-8 D.C. COOK NUCLEAR PLANT l EQUALIZED ASSESSED VALUATION AND TAX PAYMENTS f BRIDGMAN SCHOOL DISTRICT 1967-1978 (Current Dollars)
Totala Property C D.C. Cook Equalized Bridgman b Property b Taxes Taxes as Assessed School Taxes Paid on Percent of Yearly Valuation Millage (Total D.C. Cook Property Expenditures (by State) Rate Levied) Plant Tax (Operating) 1967 $119,676,988 21.78 $ 210,804 $ 395,426 1968 11,410,164 25.06 286,144 468,161
- 1969 12,037,366 27.650 332,833 $ 9,392 2.8 466,896 8 1970 13,092,192 27.548 360,664 150,482 41.7 526,299 1971 21,708,855 29.346 637,068 438,267 68.8 676,049 1972 35,796,665 26.326 942,383 1,025,361 108.8 861,074 1973 67,564,101 22.026 1,488,167 1,492,624 100.3 1,039,660 1974 105,493,870 18.123 1,911,865 1,464,265 76.6 1,214,668 1975 144,741,867 12.639 1,829,392 1,752,290 95.8 1,412,006 I 1976 177,011,961 12.391 2,193,355 2,415,632 110.1 1,695,634 1977 252,501,139 11.626 2,935,578 2,547,626 86.8 1,780,315 1978 267,234,230 11.539 3,083,616 2,798,778 90.8 1,984,860
^ Issued in May of the calendar year; therefore, this reflects SEV at about the beginning of the year.
1 b
Fiscal year ends June 30.
cFiscal year for I&ME, does not correspond to fiscal year of school district.
Source: Berrien County Intermediate School District Educational Directory, annual vols., 1967-1978, by year, Berrien Springs; I&ME, personal communication,1979; Roberts & Merkel, Bridgman Public Schools, Report of Examination, 1968-1979 l
l
l
< i 100-rcth:r than 11.539-would hnva be:n nect:2ary to rdsa tha stmo rnvenus for tha school district in 1978.1 )
In order to give a reasonably realistic indication of the importance of the contribution of the D.C. Cook plant to the property taxes of the school district, the property tax payments by an average property owning resident of the district were estimated by comparing the estimated property tax on a residential unit in 1969 (before the D.C. Cook plant became an important eternent), in 1974, and in 1978. The mean l 2
ctate equalized value (SEV) of residential property was estimated from data on housing values from the 1970 census and the average selling price of residential units in the Bridgman area in 1974 and 1978 from the Southwestern Michigan Board of Realtors. By '
applying the appropriate millage rate (sce Table 7-8), the average property tax payment by homeowners to the Bridgman School District was estimated. As shown in Table 7-9, the estimated average homeowner property tax to the school district in 1969 was $163 (based on 21.78 mills and property value of $15,000). In 1974, when the average housing price was $28,000, homeowner property taxes to the school district at the 1974 millage rate of 18.123 would have averaged about $254. In 1978, the estimated average homeowner property tax payment was about $213, based on an average housing value of
$37,000 and the 1978 millage of 11.539. Thus, even with the declining millage rate, the everage homeowner's school district property taxes remained almost constant due to inflation and the rising value of housing. In constant 1972 dollars, however, the average homeowner's school district property taxes declined by about $43 per year between 1969 and 1978. If it is assumed that the decline in millage rates for the Bridgman School District between 1969 and 1978 was due primarily to the D.C. Cook taxes and that without them the millage rate would have remained at least at 1969 levels, it is possible to estimate the average property tax savings per homeowner in the Bridgman School District by applying the 1969 millage rate to the 1974 and 1978 SEV of owned housing and comparing this figure to the tax payments actually made. In constant 1972 dollars, the average savings per homeowner were estimated at $114 in 1974 and $198 in 1978. It I
It is clear that this millage rate would not have been imposed, but that the budget would have been reduced. This does, however, give an indiction of the magnitude of the tax contribution from the D.C. Cook plant.
2 State equalized valuation is 50 percent of rnarket value.
151
TABLE 7-9 D. C. COOK NUCLEAR PLANT .
ESTIMATED PROPERTY TAX ?AYhfENTS TO BRIDGMAN SCHOOL D! STRICT PER RESIDENTIAL PROPERTY OWNER 1969,1974, and 1978 Estimated" Average Home D Average Home b Tax Average owner Tax owner Tax Difference SEV of at Existing at 1969 1969 vs.
Residential Millage Millage Existing Property Rates Rates Rates Constant Constant Constant Current Current 1972 Current 1972 1972 Dollars Dollars Dellars Dollars Dollars Dollars 1969 $7,500 $163 $185 $163 $185 0 1974 14,000 254 217 387 331 $114 1978 18,500 213 142 511 340 198 abased on 1970 Census and Southwestern Michigan Board of Realtors figures for housing value.
b Millage rates were 21.78 in 1969; 18.123 in 1974; and 11.539 in 1978.
Source: Mountain West Research, Inc.,1980.
152
I should be noted that this " savings" in tax payments occurred while there was very cubstantial expansion in school budgets and physical facilities.
7.3.2.5 Summary The presence of the D.C. Cook plant in the tax base of Berrien County, Lake ;
Township, and the Bridgman School District had substantial effects on the total state-eqtlalized assessed value (SEV) of each jurisdiction except Bridgman. Bridgman was not effected because no project property was within its boundaries. Since property taxes
\
were one of the two principal revenue sources in each of these jurisdictions, the increase in SEV due to the project in the absence of reduced millage rates provided additional rsvenues. Therefore, it also provided the alternative of decreasing the millage rates.'
Nevertheless, only in the Bridgman School District did millage rates actually decline over the study period (even though revenues still increased dramatically). In the other jurisdictions (except in Bridgman), millage rates increased; and the added revenues per mill due to the project thus increased the revenues available for the provision of c:rvices. The accrual of taxes to the Berrien County government (approximately 12 percent of.the total operating fund revenues in 1978) and the reduction in state aid to the Bridgman School District due to increased SEV per pupil served to distribute the tax benefits of the project somewhat more widely than the immediate vicinity of the site. In the Study Area, Lake Township residents received tax benefits from the project at all pertinent levels-township government, school district, and county. Bridgman residents did not receive any direct tax benefits from the project at the city government level; nevertheless, they received them at the school district and county levels. Thus, the cchool district overlap between Bridgman and Lake Township resulted in a wider distribution of tax benefits from the plant than municipal boundaries would otherwise have permitted.
7.3.3 Expenditures In addition to the total size of a governmental budget, the distribution of expenditures is a useful indicator of the demands made for various services. Because the relationship between budget expenditures and public needs/ demands ic ambiguous, the expenditure patterns of the three municipal units (Berrien County, Bridgman, and Lake Township) will be examined only briefly before the focus of analysis shifts to a more detailed consideration of the provision of four key governmental services-education, public safety, transportation, and social services.
153
l 7.3.3.1 Berrien County The expenditure pattern of Berrien County for the general fund and three self-governed departments over the study period is shown in Table 7-10. The growth in total dollars expended-from $4.0 million in 1967 to 8.2 million in 1978 (constant 1972 dollars)-averaged 6.8 percent per year. This was greater than the average annual growth of population in the county during this. period (about 1.3 percent) and resulted in an increase in per capita expenditures over the study period from about $25 in 1967 to approximately $50 in 1978 (constant 1972 dollars).
In addition to the overall expansion of budget, some small shif ts occurred in the distribution of expenditures among major services during the study period. As seen in Table 7-10, the percentage of total expenditures for social services increased between 1967 and 1972, from 24.8 to 39.4 percent, then declined to 21.1 percent in 1978. The proportion of the budget spent on courts increased throughout the study periou until court-related expenditures accounted for almost 25 percent of total expenditures in 1978. At the same time, the allocation to the sheriff's department declined from 22 percent in 1967 to 16 percent in 1978. Overall, however, the general distribution of expenditures by the county government was not dramatically altered during the study period.
Direct county employment expanded during the study period, from about 386 in 1967 to about 605 in 1978.1 (Berrien County Personnel Department,1979.)
7.3.3.2 Bridgman In Bridgman, total expenditures rose from $84,729 in 1967 to $237,910 in 1978 (constant 1972 dollars), an annual average rate of increase of 9.0 percent. The population of the city grew at an average annual rate of 3.4 percent. Consequently, in constant 1972 dollars, per capita expenditures by the Bridgman city government increased during the study period, from $54 in 1967 to $105 in 1978.
As shown in Table 7-11, a substantial proportion of the total expenditures in the budget reports in all years are miscellaneous and unspecified transfers to other city 1
Excludes hospital workers and elected officials, and so forth and is, therefore, only an indication of rate of growth. ;
154
BERRIEN COUNTY EXPENDITURES GENERAL FUND AND THREE SELF-GOVERNED DEPARTMENTSa 1967-1978 i
(Current Dollars)
Civil Public d Defense, Works, Social b Emergency Drains, Constant Services Prep., Bldg. & 1972 FY Health Sheriff Courts e Ambulance Grounds Planning
- Misc.I Total Dollars 4
1967 $803,700 $723,100 $558,800 $13,200 $206,600 -
$932,050 $3,237,450 $3,982,103 l 1968 1,780,774 621,000 661,200 28,200 251,500 $29,200 1,251,795 4,623,669 5,465,330 1969 2,771,771 833,000 864,400 27,100 284,200 27,900 1,733,834 6,542,205 7,392,322 1970 2,857,900 626,200 1,009,800 18,000 245,900 22,000 1,371,200 6,151,000 6,649,730 1971 2,748,600 710,500 1,253,900 17,500 308,300 35,500 1,737,232 6,811,532 7,051,275 1972 3,025,700 1,004,400 1,501,000 13,800 384,600 50,500 1,704,400 7,684,400 7,684,400
! 1973 4,340,300 1,220,100 1,786,900 16,100 419,500 53,000 1,769,000 9,604,900 9,104,171 1974 1,665,900 1,222,500 1,806,900 22,900 447,200 47,300 2,673,700 7,886,400 6,746,279 i- -
1975 1,748,300 1,388,800 2,303,100 28,900 456,200 52,600 2,817,000 8,794,900 6,952,490
, $ 1976 1,706,600 1,649,400 2,628,600 39,700 460,500 na 3,655,800 10,14,0,600 7,613,063 1977 2,611,900 1,756,300 2,558,500 34,800 487,700 60,900 3,580,600 11,090,700 7,882,516 1978 2,603,600 1,920,800 3,035,900 36,100 567,900 72,900 4,097,700 12,334,900 8,206,853 SHARE OF TOTAL FOR SELECTED YEARS 1967 24.8 22.3 17.3 0.4 6.4 -
28.8 $100 1972 39.4 13.1 19.5 0.2 5.0 0.7 22.2 $100 1978 21.1 15.6 24.6 0.3 4.6 0.6 33.2 $100
- "The three departments are Child Care, Health, and Social Welfare.
b Includes Child Care, Health, Social Welfare, and Direct Relief; contagious disease; Veterans Department Medical examiner; Detention Home.
C Includes circuit, justice and municipal, juvenile, and probation courts; friends of the court; probation officers; prosecuting attorney.
d Includes buildings and grounds, and drain commissioner. There is a separate millage and department for county bridges, not included here.
"In 1978, $501,400 was spent on development and use of a computer service.
f i
l967-1978. Includes Parks and Recreation and over $400,000 in " state institutions" annually. In 1978, includes
$430,700 of CETA funds, up from $32,800 in 1975.
Source: Berrien County Board of Commissioners, Final Budgets, 1967-1978.
l TAELE 7-11 BRIDGMAN GENERAL FUND EXPENDITURES AND TRANSFERS 1967-1978 Street b Fire Public Planning, TOTAL Admini- Dept./ and Works, 2oning, (Constant Fiscal stra- Light- Ambu- Sewer, Inspec- (Current 1972 Year tion a ing Police lance Garbage tion Misc.C Dollars) Dollars)
$10,128 $15,652 $ 5,885 $ 5,520 $12,089 -
$ 19,611 $ 68,885 $ 84,729 1967 10,116 24,122 8,000 5,100 6,500 $ 138 24,809 78,785 93,126 1968 10,130 23,708 7,500 5,000 7,700 529 26,928 81,495 92,085 1969 10,228 33,505 8,800 11,000 9,400 509 25,221 98,663 10,662 1970 12,667 26,307 11,900 8,980 8,500 480 27,585 96,419 99,813 1971 b 40,023 6,600 13,850 6,213 9,005 2,629 33,868 112,188 112,188 1972 28,163 6,325 13,885 6,102 10,289 685 37,920 103,369 97,980 1973 30,412 6,579 14,363 7,145 10,373 691 65,815 135,378 115,807 1974 50,804 6,622 19,969 9,121 13,750 1,270 55,992 157,528 124,528 1975 81,317 7,839 25,809 9,650 17,750 2,749 41,012 186,126 139,734
- 1976 7,139 96,460 257,381 182,929 g 1977 71,771 8,189 41,763 14,833 17,226 237,910 89,286 d 28,646 6,833 149,383 357,579 1978 8,796 51,045 23,590 SHARE OF TOTAL FOR SELECTED YEARS 1967 14.7 22.7 8 8.5 8.0 17.5 0 28.5 100.0 35.7 5.9 12.3 5.5 8.0 2.3 30.2 100.0 1972 25.0 2.5 14.3 6.6 8.0 1.9 41.8 100.0 1978 8 1967-1971. Includes payrolls for city, city commission, city superintendent, election board, board of review, and legal and auditing; from 1972-1978 includes office expenditures for these activities as well (Treasurers office budget was
$37,029 in 1972, for example).
b l967-1971. Transfers to street department were shown in general fund disbursements. From 1972-1978, all transfers were aggregated.
CIncludes remainder of budget items. Transfers to other funds and money carried forward.
d Includes $23,099 in attorney's fees.
'If only street lighting as in 1972 and 1978 ($6,341), this figure should be 9.2%.
Source: Bridgman City, Financial Reports, 1966-1979.
funds. A major change in accounting categories in 1972 makes comparisons across years difficult; nevertheless, it can be seen from this table that administrative expenditures increased over the study period in both absolute and relative terms, accounting for about 25 percent of total expenditures in 1978. Expenditures on police services increased sharply in 1977 and 1978, almost doubling between 1976 and 1978. In 1978, expenditures on police activities were over 14 percent of the total expenditures. Fire and ambulance !
expenses showed a similar, though less marked, pattern, reflecting the establishment in l
) 1976 of a joint r r - gency rescue team with Lake Township. At least some of the expansion in admir' arative expenses was due to increased paperwork and legal fees resulting from lawsuits to which the city was party.I (City Clerk, personal communications,1979 and 1980.) A comparison of the 1972 and 1978 expenditures, however, does not reveal major structural changes or shif ts in pricrity during this period.
7.3.3.3 Lake Township Lake Township underwent a major change in the availability of funds during the study period. Township government expenditures increased in constant dollars, from
$35,745 in 1967 to $510,148 in 1978, a fif teen-fold increase and an average annual rate of increase of 27.3 percent. Per capita expenditures increased from $17 in 1967 to $255 in 1978. As a result of the massive increase in revenues, shown in Table 7-12, the township undertook a number of capital improvement projects including the construction of an
$8.5 million water collection, treatment, and distributien system (which came into operation in 1976), a township hall in 1977, and the purchase of new fire and ambulance equipment in 1977-1979. Additional services were offered by the township government, such as police and emergency ambulance service. These services had previously been the re:ponsibility of the county. At the time of the study, the township was planning several major projects including the construction of roads, a sewage system, and a library, and the establishment of at least one township park.
As services provided by the township increased, the number of township employees also increased. Additional personnel were required to operate and administer the water and emergency ambulance systems. The establishment of the Lake Township-Baroda police force also resulted in the employment of additional personnel. Nevertheless, despite the substantial expansion of township funds and responsibilities, the total 1 I
The annexation and sand-mining suits.
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TABLE 7-12 D. C. COOK NUCLEAR PLANT LAKE TOWNSHIP EXPENDITURES l 1967-1978 l (Current Dollars)
Public Federal Works Revenue Total Police Fire & County Planning Share Constant Fiscal General Liquor Ambu- Road and (Water 1972 Year Admin. Insp. lance C cnst. Zoning Project) TOTAL Dollars 1967 na $1,800 na 1968 na 1,920 $ 2,957 $5,150 $1,051 na $ 30,240 $ 35,745 1969 nr 1,920 12,101 5,329 299 na 77,766 87,871
- 1970 $52,o46 1,920 7,005 5,050 1,402 na 63,172 68,294
$ 1971 52,557 2,445 6,763 na 1,077 na 62,842 65,054 1972 59,105 2,200 7,975 na 1,555 na 70,s35 70,835 1973 76,659 1,925 5,320 6,538 898 $43,358 128,161 121,480 1974 na 3,269 3,900 na 1,112 59,915 189,572 162,166 1975 na na na na na na 656,429 518,916 1976 na 10,492 na na na na 623,015 467,729 1977 na 6,048 na na na na T/4,697 530,602 1978 na 8,165 na 153,000 na na 766,753 510,148 Source: Lake Township statement of cash receipts and disbursements (annual), township clerk.
township employment in 1978 was still fewer than 20 persons, and the township continued to operate in much the same informal manner as before, with only part-time cdministrators.
7.3.3.4 Summary of Expenditure Patterns Of the three municipal units examined, only Lake Township demonstrated major changes in the pattern of budgetary allocation over the 1967-1978 period. In all three areas, per capita expenditures increased (in constant dollars) as shown in Table 7-13.
Lake Township showed the most dramatic increase over the study period, much of which was clearly due to the increased revenue associated with the D.C. Cook plant.
Selected public services and facilities are examined in the next section to illustrate how the D.C. Cook plant affected the demand for services, the source of funding, and the resultant effects on the cost, availability, and quality of public services and facilities in the Study Area.
7.4 Selected Public Services Ernphasis on a selected group of public services is necessary to keep the scope of the case study manageable. The services examined are education, transportation, public safety, and social services. Because of its significance to Lake Township, the impact of the D.C. Cook station on the provision of water services is also discussed.
The approach is to focus on the overall effects caused by changes in demand for services and supply of revenue.
7.4.1 Education The provision of educational services in Berrien County was primarily the responsibility of the individual school districts, although support and special programs were provided by the county. Funds for education were provided largely from taxes gsnerated from property owners in the respective districts. Financial assistance in the form of state school aid was provided from state funds, with the amount determined by a formula based on enrollment and the equalized property valuation in the district.
Federal unds were sometimes available for specific programs. Planning coordination I
and special education funds and facilities were handled by the Berrien County 159
TABLE 7-13 D.C. COOK NUCLEAR PLANT PER CAPITA EXPENDITURES BY JURISDICTION 1967 and 1978 (Constant 1972 Dollars)
Lake Berrien Bridgman Township County 1967 1978 1967 1978 1967 1978 Per Capita Expenditures $54 $105 $17 $255 $25 $49 TOTAL Expenditures" $85 $238 $36 $510 $3,982 $8,206
" Thousands of dollars.
Source: Mountain West Research, Inc.,1980.
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Intcrmcdicte School District, which covered the entire county. In addition, the Lake Michigan Community College in Benton Township received public funds and provided post-secondary education to county residents. This analysis focuses principally on the Bridgman School District, which served Bridgman and Lake Township throughout the study period, although Lake Michigan Community College received additional property tax revenues from the Cook facility.
7.4.1.1 Demand for and Provision of Educational Services 1
Almost all residents of Lake Township and Bridgman belong to the Bridgman School District. The school district boundaries (shown in Figure 7-1) did not change cppreciably during the study period.1 The school district acted as a separate jurisdiction with regard to administration and the ability to levy taxes; consequently, the revenues raceived by the school district were discussed in Section 7.3.
The demand for education in the Bridgman School District, as measmed by the number of students, increased only slightly during the study period. Ikrollment was 774 students in 1968 and 788 in 1972, an increase from project start-up to peak construction of only 14 students.2 (Berrien County Intermediate School District, 1968-1969 and 1972-1973). The number of pupils, shown in Table 7-14, continued to increase through 1975 when 839 students were enrolled in Bridgman schools. The number of students decreased to 8223 in 1976 and then increased to 888 in 1978. The average annual rate of increase between 1968 and 1972 was 0.4 percent. The rate of increase for the entire study period, from 1968 to 1978, was 1.4 percent 4 with an enrollment increase of 114 students. During this entire period, between 150 and 200 children from the Bridgman School District attended a local private Lutheran school. These enrollment figures 1
1n the period immediately prior to the announcement of the nuclear project, but following preliminary reports about it, the Bridgman District annexed the Hathaway District, in which the proposed project site was located. The motivation was clearly racognized as one of ensuring the tax potential. (News Palladium,31 December 1966.)
2 The Bridgman school superintendent gives an increase of 40 students (to 814) in 1972.
3 School district records show 816 in 1976.
4 This was a period of declining school enrollment in the State of Michigan and other parts of Berrien County. Michigan school enrollment declined at an average annual rcte of 1.2 percent between 1970 and 1977. (Verway, 1979:16.)
161 E h
TABLE 7-14 D. C. COOK NUCLEAR PLANT CHARACTERISTICS OF THE BRIDGMAN SCHOOL SYSTEM 1967/68 - 1977/78 State Valu- Number C Total Equalized ation of Number Sup-School Assessed per Total b Yearly Stu- of Em- Admini- port Year Valuation a Student" Millage Budget a dents ployees strators Teachers Staff
$11,410,164 $14,742 774 39 3 36 1967-68 12,037,366 16,266 27.650 740 39 3 36 1968-69 17,272 27.548 $492,375 758 39 3 33 3 1969-70 13,092,192 21,708,855 27,410 29.3M 645,490 788 42 3 36 3 1970-71 35,796,665 45,428 26.326 826,606 788 48 4 41 3 1971-72 d 67,564,101 81,402 22.026 987,326 830 77 4 42 31 1972-73 105,493,870 126,795 18.123 1,221,327 832 79 4 43 32
- 1973-74 40 144,741,867 172,517 12.639 1,361,144 839 93 5 48 C 1974-75 5 50 41 1975-76 177,011,961 215,343 12.391 1,682,987 822 96 288,902 11.626 2,346,270 874 98 5 52 41 1976-77 252,501,139 267,234,230 302,986 11.539 2,406,858 888 99 5 53 41 1977-78
" Current dollars.
bGeneral Fund plus Debt Retirement Fund.
C Different figures were reported by the Bridgman public schools. For the years 1971-1977, their numbers will be 792,814,830,835,838,816,882.
d Federal funds were received for support staff.
Source: Berrien County Intermediate School District, Educational Directory, Vol. 1967-68 to 1978-79
\
indicate clearly that there was no substantial change in the demand for the number of classrooms and teachers in the Bridgman School District during the study period.
To examine the effects of the project on the demand for educational facilities in the Study Area, the number of additional students in the system due to the project was derived from worker and population data in Chapter 5, utilizing Malhotra's figure of approximately 0.8 school-aged children per worker family (Malhotra,1979). In 1972, it is
- estimated that 29 additional school-aged children were present in Bridgman or Lake Township as a result of the project, and that in 1978, this figure was about 18.1 These children would have represented 3.7 and 2.0 percent of total enrollment, respectively, if the total Bridgman school system figure for 1972 is correct. These estimates appear consistent with actual enrollment increases. Similar estimation procedures indicate that there were approximately 397 additional school-aged children in Berrien County due to the project in 1972 and 142 in 1978. Total public school enrollment in the county during the study period was approximately 42,000.
In 1971, the Bridgman School District was identified as the only school district in Berrien County with excess capacity in all grades (Berrien County Planning Department, 1971:22). Enrollment expanded very little between 1968 and 1978 (see Table 7-14).
Consequently, neither project-related nor total demand increases in terms of student enrollment appear to have required e,xpansion of physical facilities or teaching staff.
Nevertheless, during the study period, the Bridgman system constructed a new middle school and a new high school and remodeled one of the abandoned schools for use as an elementary school. The high school was completed in 1973, and the middle school was completed in 1978. (Bridgman Superintendent of Schools,1978.)
7.4.1.2 Availability of Revannen In Michigan, the state plays an important role in the allocation of state monies to assist public schools. State financial assistance to local school systems is based on a formula that allocates state monies to compensate for unequal per-student property valuations (as equalized) by district. Prior to the construction of the D.C. Cook plant, when the assessed valuation per student was about $14,000, the Bridgman school system 1
Based on 36 movers accompanied by family in 1972 and 22 movers accompanied by family in 1978.
163 e -
received about 40 percent of its operating revenues from the state. As the D.C. Cook plant was completed, the assessed valuation per student rose, reaching $302,986 in 1978, and the state equalization money decreased. In 1978, state funds were reduced to 3.6 percent of the revenues received (still $89,800 in current dollars). The taxes received from the D.C. Cook project made up almost the entire school budget between 1972 and 1978 (see Table 7-8).
The property tax millage rate for the Bridgman School District declined throughout the study period, from 27.65 in 1969 to 11.539 in 1978. Despite this decline in school tax rates, the rapidly increasing assessed valuation of property in the school district (as equalized)l-from 13.5 million in 1968 to $177.8 million in 1978 (constant 1972 dollars)-resulted in a rapidly increasing school budget. Because the budget increased rapidly while enrollment was essentially stable, a great increase in per student expenditures and capital investments was possible. The number of school employees increased during the study period, from 39 (3 administrators,36 teachers) in 1969 to 99 (5 administrators, 53 teachers, and 41 support personnel) in 1978, with a resultant decrease in the student / staff ratio from 19.0 in 1969 to 9.0 in 1978.
Between 1976 and 1978, the Bridgman school system ranked first in the state's 581 systems in per-pupil general fund revenues ($2,475 in current dollars) from local sources and 29th in per-pupil current operating expenditures,2 yet cost the average residential taxpayer less than the cost in 1969-70 (Verway,1979: 188).
7.4.1.3 Summary Despite the loss of state school equalization monies, the increased property value in the Bridgman School District from the presence of the D.C. Cook plant and the taxes paid on it by I&MP increased the availability and modernity of educational facilities in the Study Area. (However, it should be noted that the system had excess capacity even 1
To maintain parity statewide, relative to true market value. Property was to be assessed at 50 percent of its true market price.
Z The system ranked 508th (out of 581) in average teacher's salary. By contrast, the nearby St. Joseph City School District ranked 69th,157th, and 37th, and the Lakechore School District ranked 336th, 397th, and 282nd on per pupil general fund revenues from local sources, per-pupil operating expenditures, and average teacher's salary. (Verway, 1979:188.)
i 164
f without the new buildings.) The cost of the educational system to local residential taxpayers was substantially reduced as a result of the project, as millage rates declined from 27.65 to 11.539 during the study period. Although there was some controversy over the particular expenditure and policy decisions of the school board and superintendent, it was generally agreed by all interviewed that the Bridgman school system was the betterl for the additional funds-that it had made major improvements, and that it had overcome its reputation as one of the least desirable systems in the county.E In fact, by the mid-1970s the school system had ceased being a deterrent for families with a concern for education to locate in the Study Area and had become an attraction. (Key informant interviews,1979 and 1980.)
The new schools provided not only improved physical facilities for the students, but also a major new recreational resource for the community. An extensive community recreation program (focusing on the swimming pool) had been developed by 1978. The decrease in student / teacher ratios and improved teacher salaries were generally viewed as instrumental in attracting quality teachers and improving the overall quality of the school experience. Community residents exhibited great pride in the new school facilities.
7.4.2 Transportation The responsibility of the Study Area governments for transportation was limited to roads and highways. Berrien County also had jurisdiction over airports, railroads, and harbor facilities.3 The State of Michigan had the responsibility to construct and 1
There were isolated complaints that the low property taxes attracted families whose children contributed to undesirable behavior such as using drugs, and so forth, but such complaints were not widespread.
Z In addition, both the Berrien Intermediate School System and special education, which provides coordination and special education services, and Lake Michigan College received substantial property tax revenues from the D.C. Cook plant-$84,678 and
$69,549 respectively in 1972, and $470,432 and $451,326 (current dollars) respectively in 1978. The effect of these monies on services provided was not examined in detail in this study.
3 The railroads in the area are run and maintained by their respective owners. The development, maintenance, and operation of the airport, Ross Field, is the responsibility
') of the Twin Cities Airport Board. This independent agency is composed of ten members appointed by Benton Harbor, Benton Township, and the City and Township of Saint Joseph.
the field.An airport manager and staff are hired by the board for the actual operation of I
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maintain all roads specified as state routes, of which there were several in the Study Area.
The Study Area was served by a road network operated and maintained by a variety of government units. Str.te highways and interstate routes such as I-94 were maintained by the State Department of Roads,. County-designated streets come under the purview of the county. La'te Township paid the County Road Comtnission for road repair and maintenance services. In effect, they turned the responsibility of upkeep of their local roads over to the county. Although cities usually maintained and repaired their own streets, Bridgman paid the Cou ity Road Commission to maintain the city's portion of Red Arrow Highway. Berrien County, Bridgman, and Lake Township each collected revenues for highway lighting and maintenance.
7.4.2.1 Demand for Transportation Services The major effects of the project on the principal transportation links in the county, and on the demand for transportation-related services, especially in the Study Area, were the consequence of increased automobile traffic, particularly at shift changes. The concentration of 2,525 workers in one place necessarily resulted in increased traffic flows in the vicinity of the project site. Although traffic was dissipated relatively quickly due to the particular location of the plant site relative to I-94 interchanges (it was possible to get on the interstate from the project site without going onto Red Arrow Highway by us.ing an I&M constructed private access onto a secondary road), there was still noticeable congestion on Red Arrow Highway near the plant entrance. To alleviate some of this congestion, a traffic light was installed at the entrance road and Red Arrow Highway. Other areas noted as receiving increased traffic from the project were downtown Bridgman and small feeder roads. While the general level of traffic may have also increased over this period due to visitation at the Visitors' Center, which employed the same entrance, and to a general increase in economic activity in the area over the same time period (sandmining and manufacturing in particular), the project's contribution to the increased traffic was quite substantial.
With the exception of the installation of the traffic light at the plant entrance, local highway officials thought that the construction and operation of the project did not have a substantial effect on the maintenance requirements in the Study Area or in 166
- _ _ _ -__t _ _ _ _ _ _ _ _ _ _ _ _
r
t Berrien County although it did increase congestion 1 (Shuler, personal communication, 1979; Berrien County Road Commissioner, personal communication,1980).
7.4.2.2 Availability of Revenues The effect of the very high assessed valuation of the D.C. Cook plant was to lower tha millage rates for the Bridgman School District, as, discussed previously, and to dramatically increase the tax base for Lake Township. Consequently, both Bridgman and, especially, Lake Township had increased flexibility in their governmental finances due to tha project. Although Bridgman did not receive any tax money directly from the D.C.
Cook plant, thus obviating changes in revenue sources of tl.6 type in Bridgman during the study period, the substantial reduction in school property taxes could have been taken as an opportunity to raise city taxes while keeping the total city tax burden the same. This was not done. Lake Township, on the contrary, received many more revenues than it had previously, much of it directly from the project. None of this revenue was earmarked by law for use on the transportation system, however, and its allocation, therefore, required spncific action by township officials. Both municipalities received monies from the Michigan Motor Vehicle Highway fund.
Both Bridgman and Lake Township undertook some significant road improvements during the study period. Only in Lake Township, where virtually all local governmental financial decisions were influenced by the revenues from the D.C. Cook project, were project-related revenues linked with this increased activity (Bridgman and Lake Township citrks, personal communications,1979 and 1980). In Bridgman, where the city was responsible for 5.34 miles of major roads and 7.25 miles of local roads, a number of local ror.ds were paved and curbed in response to a localized demand for such improvements, which was not supported throughout the community. Tha failure of a 1978 bond issue, which was aimed at appropriating funds for upgrading a number of local streets, forced tha city to make the improvements in a piecemeal fashion, one or two roads a year. City expenditures on both major and local roads increased (in constant 1972 dollars) from
$39,000 in 1972, to $81,000 in 1975, to $181,000 in 1978.
I This was particularly emphasized in comparison. with the sand-mining activity, which was noted to increase maintenance requirements substantially because of the constant use by heavily loaded sand trucks.
167
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l In Lake Township, a somewhat less restrictive approach toward road improvements was taken, with the work contracted to the county incrementally over a number of years. Although Lake Township officials wished to move more quickly on road upgrading and repairs and had more than adequate revenues for this purpose, the administrative requirement to work through the Berrien County Road Commission imposed delays. (Lake Township Supervisor, personal communication,1979.) The county road commission's capacity was limited, and since it had responsibilities throughout the county, it was not able to perform all the road work requested by the county. In cddition, since county matching funds were of ten involved, limited county funds and equity considerations required the distribution of projects arncng all jurisdictions in the county. Nevertheless, the persistent efforts of the township and the availability of funds resulted in the upgrading of a high proportion of township roads by 1978, and plans were underway for a major road project in the early 1980s.
In terms of Berrien County, the county road commission received no local property taxes. All revenues were gas and weight taxes distributed by the state. The road commission budget was $3.5 million in 1972 and $3.59 million in 1978 (constant 1972 dollars), and thus did not show any measurable increase. (Berrien County Road Commission, personal communication,1979.)
7.4.2.3 Summary During the peak construction period, increased traffic from the D.C. Cook work force created congestion and some inconvenience along Red Arrow Highway. This resulted in the installation of a traffic light on Red Arrow Highway at the plant entrance and Thornton Road (the alternative access route to I-94). Increased traffic was noted in
,. Bridgman and Lake Township, especially during shif t changes. There is no indication, however, that project-related traffic had a substantial effect on road maintenance requirements or that there was a sufficiently large shif t of residential location due to the project to affect long-term transportation patterns in the Study Area. Township officials indicated that additional revenues were available to meet demands for road improvements in Lake Township. The situation was more problematic for Bridgman, which, as a city, had greater responsibility for roads and which did not receive direct tax benefits from the project. The restricted ability of the county road commission to respond was reported to be the limiting f actor in the improvement of township roads, not township revenues or interest in increased activity. (Lake Township Supervisor, personal communications,1978 and 1979; Lake Township Clerk, personal communication,1978 and 168
^ ' _ _ - - - - _ _ - - _ _
1980.) There are no indications that county highway decisions were affected by the project except in allocating time to Lake Township. (Berrien County Planning Office, 1978; Berrien County Road Comraission,1980.) Through 1978, therefore, the effects of the project on the cost and rvailability of highways and roads was small. In Lake Township and Berrien County, the argument can be made that tax payments by the I project provided revenues to improve the roads at relatively less expense to other taxpayers, but this was not identified as a major effect of the project by 1978.1 1
7.4.3 Public Safety The major elements of the public safety services provided by local governments include police, fire, rescue, and civil defense (preparednese and communications). At the l county and local level, public safety services, like transportation services, were provided by a number of overlapping sources. The state police had responsibility for patrolling l
t state and interstate highways. The county sheriff's office handled law enforcement on 1
county roads and also contracted with individual local government units, particularly townships, for police services. Cities, villages, and townships typically either used this j contractu@ arrangement or maintained a local police department. Bridgman maintained '
its own police department throughout the study period, while Lake Township shifted in 1973 from contracting services from the county to sharing a police department with Baroda Township, the next jurisdictional unit to the east.
Fire protection in Berrien County was usually provided by the local governmental unit, though governments frequently cooperated in forming and operating joint fire departments. Lake Township and Bridgman each maintained its own fire protection services during the study period.
Ambulance and emergency services in Berrien County are often maintained jointly by several local governmental units. Bridgman, Lake Township and Baroda Township shared one such service, which was housed in the township building in Lake Township.
1 The large road improvement project planned for Lake Township in 1980 and 1981 may change this assessment since all township activities are affected by project tax payments.
169
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7.4.3.1 Police In its joint program with Baroda Township, the Lake Township police department changed the law enforcement staff from four elected constables in 1967 to three officers and one elected constable in 1978. According to interviews with the township supervisor and other community officials, the increase was not related to any increased demand for police services caused by the D.C. Cook project, although the availability of revenues may have influenced the decision. No project taxes were specifically earmarked for police services, however, so the relationship of this allocation decision to the project is ambiguous.
In Bridgman, the city government expanded police activities, including the institution of 24-hour police service in 1977-1978 in response to residents' demands. The police force increased from 1 full-time and 1 part-time officer in 1967 to 4 full-time officers in 1978. The additions resulted from the transition of part-time to full-time work and gradual expansion to paid employment throughout the study period. There were no major jumps in police force size (Bridgman Clerk, personal communication,1979). As shown in Table 7-11, Bridgman expenditures on police services increased from $7,239 in 1967, to $13,850 in 1972, to $33,962 in 1978 (constant 1972 dollars). No effects from the D.C. Cook project in terms of demand for services or availability of revenues were identified.
In Berrien County, the police services were provided by the sheriff's department.
Expenditures for the activities of the sheriff's department rose from $0.9 million in 1967, to $1.0 million in 1972, to $1.3 million in 1978 (in constant 1972 dollars). As with Lake Township, no noticeable demand changes were attributed to the D.C. Cook project, and changes in budget size and allocation could not be tied directly to the project since project taxes were not paid to the sheriff's department itself.
7.4.3.2 Fire and Ambulance The Lake Township fire department was staffed by 17 part-time firefighters in 1978. In 1978, the Bridgman fire department was operated by 16 part-time firefighters.
In 1976 and 1977, the Lake Township fire department purchased two new fire trucks and upgraded its communication system, which, in conjunction with the installation of fire hydrants throughout the township as part of the water supply system, raised the township's fire rating from 9 to 6 (Lake Township Supervisor, personal communication, 1979). Both the Lake Township and Bridgman firefighters were included in the training 170
. _ _ _ _ _ _ - _ _ _ _ _ a , _ _ ___
programs held at the D.C. Cook plant. There was no report that the D.C. Cook project had affected the demand for fire services in the Study Area or Berrien County Although the availability of funds to the Lake Township government undoubtedly influenced its purchasing decisions regarding the additional firefighting equipment and the installation of fire hydrants, it is not possible to determine the exact nature of that influence. (Lake Township Supervisor, personal communication,1978.)
, The joint Bridgman, Baroda, and Lake Township emergency rescue service was instituted in the mid-1970s and upgraded a number of times af terwards. As with the fire department, the D.C. Cook property tax contributions probably provided for a great percentage of the cost of the improvements in equipment and the increased operating expenses incurred by Lake Township during the study period. In constant dollars, Bridgman's expenditures for fire and ambulance services declined from $6,800 in 1967 to
$6,200 in 1972, but rose to $15,700 (constant dollars) in 1978.
7.4.3.3 Civil Defense Although township and city officials are involved with the planning and implementation of civil defense actions, official responsibility lies with the county and the State of Michigan. Berrien County expenditures on civil defense remained relatively constant throughout the study period, increasing in constant dollars from $16,200 in 1967 to $24,000 in 1978. No effects on demand or the availability of funds from the project were noted by 1978. (Berrien County Civil Defense officer, personal communication, 1980.)
7.4.3.4 Summary In general, in the Study Area and especially in Lake Township, the availability of funds for public safety increased during the study period, at least in part due to the D.C.
Cook project. The demand and need for public safety services also increased, although this was not associated with the project. The ability to respond was reported to have prevented public safety problems frotn rising and to have contributed to an increase and improvement in the public safety services available in the Study Area at little or no additional cost to residents.
7.4.4 Social Services Virtually all social services available in the Study Area were coordinated and administered by the state or the county. In general, below the county level, the local 171
governmental units of interest in this study lacked the necessary resources and population concentrations to adequately provide most of these services. A county organization, the Berrien County Department of Social Services, coordinated and administered most of the area's social services. Under the direction of the State Department of Social Services and the County Social Services Board, it administered public assistance programs, provided general ' assistance and rnedical care to indigent persons, and rnaintained work relief programs. Funding for such programs came from federal, state, and county sources.
Strictly speaking, no significant revenue-related changes in the provision of social services were noted in the Study Area. Social services were not regularly provided by the municipal civil division and remained the responsibility of county, state, and federal agencies. No project-related taxes were paid directly to these funds, so any effects of the project on revenue availability had to operate through allocations of the general fund revenues. County expenditures on social services programs in constant 1972 dollars increased from $2.1 million in 1968 to $3.0 million in 1972, but declined to $1.7 million in 1978. However, changes in responsibility and funding patterns between the state and the county make it difficult to determine the effect of these changes at the local level.
Overall, there does not appear to have been any notable impact on social services during either the construction or operation periods due to project-related personnel or increased tax revenues.
7.4.5 Water Services During the study period, Lake Township installed a township-wide water system that had a significant effect on public welfare and municipal finances in the township.
The decision to construct this system, though complex, was sufficiently tied to the increased availability of public funds due to revenues received from the D.C. Cook plant that it deserves mention as part of the local government service effects of the project.
Prior to the study period, Lake Township had no water system, and residents were dependent upon individual wells for water. Because of the local geology, the quality, quantity, and location of water were of ten unsatisfactory. In 1969 or 1970, two or three years af ter the D.C. Cook project was announced, Hoover-Ugine expressed interest in l
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locating in Bridgman or Lake Township but indicated that its siting decision was dependent upon the availability of public water.
The opportunity to attract a major new industrial investment served as the incentive for Lake Township to initiate plans for a municipal water system in 1970.
4 After negotiations for a joint project with. Eridgman broke down, Lake Township undertook to construct the township-wide water system. This represented a major expansion in township sernce provision responsibilities and demonstrated the chronic i
failure of cooperative action between the township and Bridgman.
l The water system was financed through a bond, and a 1.35 mill levy was passed that went into effect in 1974-75. This was later raised to 2.2 mills in 1976. The system obtains water from Lake Michigan at a site adjacent to the D.C. Cook plant. The system included a treatment plant, and fire hydrants were located throughout the township.
Only the far northwestern corner of the township was not served by the system. Largely as a result of this water system, the fire insurance rating in the township dropped from 9 to 6, resulting in substantial reductions in property fire insurance premiums. l Although the principalinitiating factors for the decision to build the water system were not related to the D.C. Cook project or to demand created by either the project or its personnel, the availability of resources because of the large assessed value of the project made feasible the financing of the project. The incremental tax burden for township property owners was 2.2 mills. Without the D.C. Cook plant in the tax base, this figure would have been several times higher, and it is questionable if township residents would have approved the project.
Consequently, as with the school system, the change in the provision of services seems to have been affected relatively more by resource availability than by increased demand. The effect of the D.C. Cook project, therefore, was to allow construction of a major capital facility, which substantially improved the availability of a public service, but which had relatively low costs to the average resident of the township.
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CHAPTER 8: SOCIAL STRUCTURE 8.1 Introduction The purpose of this chapter is to identify and examine the effects of the project on the social structure of the Study Area. The approach followed in this chapter is to first identify the major functional social groups in the Study Area at the beginning of the study period, to develop a profile of each group, and to describe the major features of the relationships among the groups in the Study Area. The next step is to determine the distribution of the economic, demographic, housing, and local government effects of the project (identified in Chapter 4 through 7) among the groups in the study.
Changes in the profiles of the groups and in the relationships among groups during the study period are then identified, and the role of the project in those changes is evaluated.I 8.2 Social Structure at the Beginning of the Study Period (1967) 8.2.1 Identification of the Social Groups A premise of this study is that relationships among people in a communityl are structured and that people in a community form functional groups that can be identified and described.
The selection of the social groups is based primarily on an examination of the historical development of the Study Area and on interviews with key informants regarding the organization and structure of the Study Area community, supplemented with personal observations and secondary data. The descriptions and analysis were presented to residents of the Study Area for their comments and confirmation. The discussion in this chapte.? represents a synthesis of the information obtained through interviews with Study Area residents. In order to protect the confidentiality of the information provided by these persons, statements are not attributed to specific people.
Persons interviewed are included in the Personal Communications portion of the report.
1 Using Warren's (1978) definition of community-that combination of social units and systems that perform the major social functions having locality relevance.
(Functions include: production, distribution, consumption; socialization; social control; social participation; and mutual support).
l 1
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In Bridgman/L;ke Township in 1967, three groups were idsntified as the important functioning social units of the Study Area: the Longtime Residents, the Lakeshore Property Owners, and the Other Newcomers. It should be noted that the boundaries between these three groups are somewhat indistinct; there is some overlap in membership between groups because the groups are not altogether internally homogeneous. This chapter will profile the thr,ee groups and will explore the changes in these groups and their interrelationships. The role of the plant in these changes will then be evaluated.
8.2.2 Group Profiles Based on a review of the literature on community organization, social structure, and large-scale project effects, seven attributes were identified as being most critical to the specification and description of the groups, the social structure of the Study Area, and the analysis of the effects of the nuclear project on them. These seven attributes were:
(1) Size of the group; (2) Livelihood of group members; (3) Demographic characteristics; (4) Geographic location (residential and occupational);
(5) Property ownership characteristics; (6) Dominant attitudes and values toward growth, environment, community participation, and planning; and (7) Patterns of interaction among group members (cohesion).
A profile of each group on the basis of these seven attributes at the beginning of the study period was then developed by synthesizing secondary data, information from key informants, and records of public occurrences. Because the purpose of these profiles is to explicate the social structure and provide a basis for the analyses of project effects, the approach has been to describe the Inodal characteristics of the group and to give some indication of the diversity within the group.
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L 8.2.2.1 Longtime Residents Group Characteristics The principal distinguishing characteristic of the Longtime Residents was that their families had lived in the area for several generations or that they had attended high school in the community. In 1967, about 80 percent of the Study Area residents (about 2,850 people) belonged to the Longtime Resident group. Livelihood was not one of the major distinguishing characteristics between the three groups in the Study Area, as is evident by the relative diversity of livelihoods within each of the three groups. Table 8-1 shows the employment and occupational distribution of all residents of the Study Area in 1970.1 Because the Longtime Residents constitute such a large proportion of the total population of the Study Area, these figures are useful indicators of the dominant employment and occupational characteristics of this group. The majority of the employed members of this group were blue-collar manufacturing workers, employed in wage and salary jobs located throughout Berrien County. Others were employed in the trade sector. In 1970, about 660 Study Area residents (46.6 percent of those employed) were working in manufacturing jobs, and about 300 (21.4 percent) were employed in the trade sector. The other significant livelihoods for Longtime Residents were small business / proprietorships, clerical work, teaching, craf ts, services, and agriculture.
A small percentage of this group made a living from agriculture, as fruit growers, nursery specialists, or dairy f armers, significantly fewer than in the previous decade. By 1967, about 350 persons (4 percent of the Study Area population) lived in areas classified as rural, but few were engaged in full-time farming or farm management, and even fewer f amilies derived their livelihood solely from farm activities as about half of the farm families included a wage and salary worker (U.S. Census 5th Count data tapes; Driker, 1969). Ilowever, the importance of an agricultural heritage and the prevalence of small acre " residential farms" among the Longtime Residents make this type of livelihood more important to the Longtime Residents than the figures indicate.
To summarize, a range of livelihoods was found in this predominantly industrialized manufacturing-based town among the Longtime Residents of the Study Area in 1967.
l It should be noted that by 1970, construction on the D.C. Cook plant was well underway, and these numbers reflect the addition of approximately 62 people because of the project.
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u TABLE 8-1 D.C. COOK NUCLEAR PLANT EMPLOYMENT BY INDUSTRY AND OCCUPATION STUDY AREA AND BERRIEN COUNTY 1970 Study Area TOTAL Bridgman Lake Township Study Area Berrien County Number Percent Number Percent Number Percent Number Percent Employment by Industry" Construction 54 7.4 44 6.3 98 6.9 3,153 5.0 Manufacturing 299 40.9 366 52.6 665 46.6 27,367 43.2 Transportation 8 1.1 11 1.6 19 1.3 1,358 2.1 Communication 13 1.8 11 1.6 24 1.7 1,314 2.1 Trade 167 22.8 139 20.0 306 21.4 11,269 17.8
- FIRE 29 4.0 20 2.9 49 3.4 3,286 5.2 d Other Prof. 43 5.9 10 1.4 53 3.7 4,337 6.9 Educ. Services 51 7.0 11 1.6 62 4.3 4,759 7.5 Public Admin. - -
6 0.9 6 0.4 1,586 2.5 Other 67 9.2 78 11.2 145 10.2 4,879 7.7 TOTAL 731 45.1 696 32.4 1,427 37.9 63,308 38.6 Employment by Occupation Professional 94 12.9 76 10.9 170 11.9 7,938 12.5 Farmers-mgrs. 18 2.5 23 3.3 41 2.9 1,076 1.7 Managers 8 1.1 44 6.3 52 3.6 4,964 7.8 Clerical 104 14.2 86 12.4 190 13.3 9,882 15.6 Sales 58 7.9 34 4.9 92 6.4 3,378 5.3 Crafts 158 21.6 174 25.0 332 23.3 9,856 15.6 Operations 150 20.5 194 27.9 344 24.1 15,617 24.7 Services 112 15.3 50 7.2 162 11.4 7,194 11.4 Farm Labor - - - - - -
865 1.4 Laborers 29 4.0 15 2.2 44 3.1 2,538 4.0 TOTAL 731 696 1,427 63,308 TOTAL POPULATION 1,621 2,146 3,761 163,940 aFourteen years of age or older by place of residence.
Source: U.S. Bureau of the Census, 5th Cotmt Tapes,1970.
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1 Incomes of Longtime Resident households tended to be in the intermediate range, the combined effect of the relatively high wage levels in the manufacturing sector and the prevalence of two-wage households resulting from the participation of approximately 40 percent of the women in the labor force.
Virtually all of the Longtime Residents were white with more than 50 percent being of German extraction. All age cohorts had strong representation in the group, somewhat unusual for a small town, reflecting the availability of employment in the area and the strong ties to family and community. The population was relatively evenly divided betwe.en males and females, with the typical exception of the elderly. The dominant religion among this group was Lutheran. For many, religion played an important role in their lives and in their social activities.
The Longtime Residents lived primarily on the east side of Red Arrow Highway.
The group was relatively evenly split between residents of Bridgman and Lake Township. Historically, there had been an exchange of people between the two jurisdictional boundaries. Within Bridgman, many of the Longtime Residents lived in subdivisions within easy visitation distance of one another. A substantial proportion of the Lake Township members of this group lived in neighborhoods relatively near the Bridgman downtown area, while the remainder lived in the eastern portion of the township in more scattered rural-residential or residential-farm settlements. Members of this group tended to own, though some did rent, single-family homes. Many of the residences outside the downtown Bridgman area had fruit-producing property-of ten orchards, vineyards, or berry bushes.
A high proportion of the Longtime Residents owned homes or property that they had inherited. This group tended to be residentially immobile, with a high proportion residing in the same home for well over 10 years. Moreover, the Longtime Residents group included the major landowners in the Study Area and the great majority of the agricultural landowners. However, since farm sizes in the Study Area were relatively small-only about 30-40 acres-the difference between farm properties and rural residential properties was small.
A distinguishing characteristic of the Longtime Residents was their political and social conservatism. They tended to be Republican and to hold a conservative, strictly bounded view of what constituted responsible, appropriate social and political action.
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Tha strtngth of the German Luthsran Church among group members influenced this position, as did the long-standing, still powerful, social relationships and standards operative in the area.
There is evidence, both from interviews for this research as well as other survey work in the area, of a strong base of appreciation for open space, the lake, the dunes, and productive land. This regard is tempered by the practicality of those who work on the land or recognize that these amenities may have to be sacraficed for economic growth.
(Kimball,1977; Garland,1979.)
In general, the Longtime Residents tended to hold the belief that growth and development were good. This appreciation of growth, however, was tempered by a realization of the environmental costs of development. The fact that a high percentage of the breadwinners in this group worked in manufacturing sector jobs encouraged cttitudes supporting a solid and growing economy. Several of those interviewed for this study indicated that the announcement of the siting of the D.C. Cook plant in the Study Area was interpreted as symbolic of the vitality of the area and faith in its future.
Nevertheless, the Longtime Residents took a rather moderate position regarding growth immediately prior to the project. Little active effort had been made to either encourage or discourage new industrial, commercial, or residential expansion in the area. This may reflect, perhaps, a somewhat ambivalent view by a substantial proportion of the group toward increased industrial and residential growth at the expense of the small-town, rural character of the area and its environmental attributes (Garland, 1979). According to some residents, many Longtime Residents of the previous two generations had been pro-growth entrepreneurs. Most of the influential families in 1967 had been established by such activity; however, many of those who had been the most influential in this group were approaching retirement age in 1967.
Zoning and land use control were accepted practices in Bridgman and Lake Township well before the study period. The area was part of the county drain district (which had been organized by a member of one of the major families in this group), and individual landowners as well as the group as a whole realized substantial economic and amenity benefits from this cooperative form of land use control. The influence of legal strictures and established patterns of regulations on Longtime Residents is demonstrated by their acceptance of and respect for land use controls, despite a strong adherence to 179
the principles of private property and individual rights over private property.I The establishment and enforcement of more zoning regulations, the shutdown of the Bridgman Casting Company when it did not meet environmental standards, and the controversy over sand mining on land in the Study Area 2 were local issues that demonstrated the complexity of the growth issue to members of this group.
Many of the Longtime Residents held traditional views regarding the role of the church and the family, heavily influenced by their Germanic background and the strength of the German Lutheran religion, language, and culture. A substantial number of the Longtime Resident families sent their children to the Lutheran school in Bridgraan.
Interviews with members of this group in(.icated that it had been difficult to arouse public support, much less action or initiative, on issues or community events, but that the more anonymous civic activities such as voting and contributions to support civic functions were considered important.
Group Interaction The patterns of interaction among group members will be examined for three spheres of activity: econom!c, political, and social. The discussion on the economic interrctions amorg group members will focus on two elements: employment and income. That on the political interactions will focus on political control, representation, and participation. The discusssion of sccial interaction will consider the participation or control of formal social organizations and the degree of informal social contact.
The diversity of the economic activities pursued by Longtime Residents made the economic interrelationshipa between group members complex. Since this was r.ot a new I
That they did not support a " growth at all cost approach" was illustrated by their failure to approve a petition to alter the zoning modification that would have allowed a mobile home park in south Bridgman.
Z The most intense issue in the Study Area during the study period was over sand mining. A sand-mining company had filed an intent to mine the dunes on their land in Bridgman and Lake Township. The land had been purchased many years previously and was in an industrially zoned area. When the dunes were mined, the entire dune was removed, leaving a completely flat, deforested area, The proposed sand mining would have created a break in the dune barrier between Bridgman and Lake Michigan. These sand dunes were not barren sand, but covered with dense, mature forest cover.
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group, the relationships had evolved over time and through changing economic conditions. The majority of the privately owned commercial, retail, or manufacturing businesses in the Study Area had been established by Longtime Residents. The great majority of these businesses had been started several generations previously so that in 1967, a relatively large number were owned by family members no longer residing in the Studf Area. This particular form of absentee ownership influenced the economic relationships between group members. The image of local ownership remained, although ownership and control had passed out of the community. A large proportion of the I commercial actielty in the Study Area was owned by a handful of people. Although many of the managers of these establishments were Longtime Residents, many of the salaried employees were from outside the Study Area.
A number of the smaller manufacturing companies in the Study Area were also privately owned by Study Area residents who were n2 embers of this group. These firms tended to be younger and were in a more active phase of development than were the commercial retail firms. Nevertheless, interviews with representatives of a number of these companies revealed that few Study Area residents were employed in these local concerns. The majority of working Longtime Residents were employed in wage and salary jobs located outside the Study Area. This tended to reduce the degree of economic interaction among group members since relatively few employer / employee relationships existed, and the large pool of labor and jobs in the vicinity of the Study Area minimized any monopoly effect.
Contrary to these patterns, the commercial farms and nurseries tended to be both owned and operated by members of well-established families who employed other Longtime Residents for those jobs not filled by family members. Family ties among workers in these establishments tended to be strong.
l However, the great proportion of Longtime Residents working outside the area and the permeability of the Study Area boundary to commuterm f 1,rk dissipated the intensity of the economic relationships between Longtime Residerm. Without this flow of workers, it appears likely that the dominance of the few more established, economically active f amilies would have had considerably more influence and importance to both the group and the Study Area than it had in the period immediately preceding the construction of the D.C. Cook plant. None of the business policy groups to which members of this group belonged, such as the Chamber of Commerce, had been active or 181
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cffective for come time prior to th2 construction of tha D.C. Cook plant. Tha initictivts taken appear to have been largely by individuals within the group rather than by the group as a whole.
Prior to the construction of the D.C. Cook plant, the Longtime Residents had virtual dominance over the political activitie's of both Lake Township and Bridgman.
Both Lake Township and Bridgman were governed by relatively compact groups, which had tended to change very slowly during the period prior to 1967, particularly in Lake Township. German-Lutherans and land holders / agriculturalists dominated the political leadership positions in the preproject period. Maay of the Longtime Residents had family living in the Study Area, and the close linkages between kin, church, and political leaders created a network of informal communications through which political information and influence was circulated well before it became formally "public." As a result of this network, it appears that the political leaders in the Lake Township government took on, and were accorded, a paternalistic public role that became quite intimidating to some group members.
Although this was less true of Bridgman, where the position of mayor changed hands regularly, the decisions of the leaders were seldom challenged. Part of the reason for this mode of political interaction, it was suggested, was the reluctance of most group members to participate in, much less initiate, public disagreement or conflict. The desire to avoid public confrontation or disagreement was mentioned as a definite characteristic of the political and social interaction pattern that had become established among Longtime Residents. The higher participation of outsiders and nongroup members in Bridgman politics moderated this pattern of domination by Longtime Residents.
Throughout both local political jurisdictions, conservative Republicanism was dominant in 1967, in keeping with the traditional political orientation of the area.
Given the sr.:all size of the Study Area population and the pattern of residential distribution, the majority of the Longtime Residents knew one another, and they had strong, overlapping political and social ties. This familiarity resulted in considerable social interaction in civic and shopping activities of everyday life. Church-related activities and the local social and civic organizations-women's clubs, bridge clubs, Elks, and 4-H-tended to have exclusively Longtime Resident memberships and to be led by members of a relativty small group of families. In addition, there was also reported to have been a high level of social visiting among neighbors and intergenerational continuity 1
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cmong group members, as a rslttively high proportion of offspring remained in the Study Area.
Because of the diverse occupational characteristics of this group and the number of members in it, the cohesiveness of the group depended upon the particular issue at hand and the group's interpretation of who tlie opposition was. Differences on local government issues and the frequent, persistent, and fairly adamant conflicts that arose between the Lake Township and Bridgman governments created some differences among Longtime Residents. In general, however, the Longtime Residents presented a rather unified and cohesive front.
8.2.2.2 Lakeshore Property Owners Group Characteristics The Lakeshore Property Owners lived in four residential developments in the dunes area along the Lake Michigan shore in Bridgman and Lake Township. There were about 300 members in this group in 1967. The great majority were only part-time residents of the Study Area. Those who were year-round residents tended to be retired professionals. Many of the summer and part-time Lakeshore Property Owners were also retirees, principally from professional or managerial jobs in the Chicago, Grand Rapids, or Kalamazoo areas. Those who were not retired tended to be employed in white-collar jobs in the larger urban areas, particularly Chicago. Few Lakeshore Property Owners in 1967, therefore, derived their livelihood from the Study Area or even the Berrien County economy. Incomes of the nonretired members in this group tended to be in the upper-middle income range.
The Lakeshore Property Owners were characterized by the Longtime Residents as
" Chicago people." Many, but not all, of the members of this group had come from or were living in the greater Chicago area, but others were from various parts of the upper Midwest. Virtually all of the Lakeshore Property Owners were white, and they represented a mixture of religous affiliations-Catholic, Jewish, and Protestant.
Religion was a less prominent attribute to the extent that the religious affiliation of individuals was frequently not cornmon knowledge.
In 1967, the Lakeshore Property Owners were predominantly elderly, with slightly more women than men. Those who were year-round residents tended not to have school-aged children.
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1 1
The majority of the Lakeshore Property Owners in 1967 lived in and belonged to private residential associations. These associations, such as the Dunewood Property Owners Association, were a fairly common form of organization for summer recreational property owners in Michigan. The association owned property, such as beaches, roads, and undeveloped areas, that was used in common by all mernbers and provided services such as road maintenance and garbage collecti~on. Access to most of the residences of Lakeshore Property Owners was by private roads owned by the association and posted with "No Trespassing" and " Private Property" signs.
Property ownership in the Study Area for most Lakeshore Property Owners was limited to single-f amily homes plus shares of the association's property. Some owned additional (undeveloped) lots in the dunes area. The residences, even those of part-time visitors, tended to be built and equipped for year-round use. They were generally large and fairly expensive, though some were summer cottages.
The Lakeshore Property Owners came from diverse locations and backgrounds.
Most had obtained property in the Bridgman/ Lake Township area for its amenities.
Consequently, the Lakeshore Property Owners were sensitive to and concerned about the quality of the environment in the Study Area. From their perspective, environmental considerations took precedence over economic growth and community development. Few in this group were participants of, or dependent upon, the local economy or public services, such as schools. As a group, the Lakeshore Property Owners tended to be strongly in favor of community land-use planning (though not interested in becoming involved in it) but were ambivalent about the imposition of external controls on individual's private property.
Most of the Lakeshore Property Owners had acquired their property af ter World War II, many in the decade prior to the study period. They were relative newcomers to the Study Area, therefore, in the sense that they had few, if any, kin ties with Longtime Residents.
Coming largely from urban areas and from upper-middle income families, members of this group tended to be relatively cosmopolitan and sophisticated. Compared to the Longtime Residents, Lakeshore Property Owners were characterized as aggressive, direct, and outspoken-many were trained specifically by their profession to 184
deal with bureaucracies and large organizations.I However, most did not identify the Study Area as "their" community and did not, therefore, participate in the community cffairs of the Study Area to a great extent.
Group Interactions In 1967, the interaction among members of this group was quite restricted and generally limited to members of the individual associations / residential areas. Little 3 sconomic interaction occurred between group members except for dealings with association finances. Few in this group employed or were employed by other group members. In general, members of this group were not involved in commercial activities in the Study Area.
Political interaction was similarly limited to association procedures and in response to locally generated political issues. Because most members of this group were summer residents and did not vote or participate in local political activities, their motivation to organize or interact politically was low.
Social interaction among group members was somewhat more prevalent, although this also was restricted by the periodic absence of many members of this group and the desire of many for solitude during their stay in the area. The geographic separation of the neighborhoods and the formal association organizations concentrated the social interaction within the neighborhoods.
Thus, there was relatively little contact between the Lakeshore Property Owners. Nevertheless, the interests of this group in the Study Area were sufficiently similar that group response to issues could, and was, marshalled when necessary. In other cases, the members of the group tended to remain silent and in little contact with one another.
I An example of this was the intervention of a number of this group in both the D.C. Cook and the sand-mining controversy. Their familiarity with the legal process and their ready access to lawyers (a number of them were lawyers) gave them a different perspective on the legal process than was generally held by other area residents.
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8.2.2.3 The Other Newcomers Group Characteristics The Other Newcomers made up about 20 percent of the year-round residents of the Study Area in 1967. There were approximately 700 members in this group. The Other Newcomers formed several subgroups in clusters of residential areas throughout
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the Study Area. The major component of this group was the population in-migrating to the Study Area, particularly Bridgman, during the 1950s and 1960s and who were active in the econorny of the Study Area or Berrien County. They can be considered the
" mainstream" newcomers, as they tended to participate in Study Area activities and to conform, in general, to the norms of the Longtime Residents. This component included professionals (such as dentists, teachers, and clergy), business people, other white-collar workers, and some blue-collar workers. Most were from elsewhere in Michigan or the upper Midwest (of ten frotn small towns rather than the major urban centers) and had made the move to the Study Area for professional or amenity reasons. Depending on their length of residence and personal attributes, members of this group tended to merge with the Longtime Residents or with the Lakeshore Property Owners.
A second component of this group was the fif ty or so residents of the Livingston area who were primarily blue-collar workers. The third component was the residents of the nursing home in the Study Area. Although some of them belonged to the Longtime Resident group, the majority were relative newcomers to the Study Area. Residents of the nursing homes generally did not participate directly in community activities.
Consequently, little information about thern was obtained. The majority of them were from southwestern Michigan, and many were of German extraction.1 The members of the Other Newcomers were exclusively white. Although the nursing home residents and some of the " mainstream" newcomers were Lutheran, a variety of denominations were represented in this group. The residents of the nursing homes were elderly and predominantly female; however, the other two subgroups did not mmifest these characteristics.
1 Reflecting this high proportion, advertisements for the nursing homes specified the availability of a German-speaking staff.
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Some members of this group, principally those~ arriving before 1965, were property owners, but compared to the other two groups, the Other Newcomers had a relatively high proportion of renters. Property ownership by members of this group was usually limited to residential properties concentrated in the Bridgman area, but some newcomers also had commercial or industrial holdings.
The Other Newcomers were a relatively anonymous and diverse group in 1967.
i For this reason, it is difficult to provide a valid description of the prevailing attitudes and values of this group. The largest component of this group in 1967 was the
" mainstream" newcomers, who were active in the area economy, participated in community affairs, and tended to favor and promote growth and development. Some were interested in modifications of existing zoning and land-use regulations, but in
[
general supported economic and community development planning. Being newcomers,
{
frequently with an intention to stay in the Study Area for a number of years, they tended to be interested and concerned about local government and public services, but conservative in their participation in local affairs. The majority of this group were Republicans, but tended to be less strictly conservative than were the Longtime ,
Residents.
The Livingston component of this group was stereotyped by others in the Study Area as decidedly outside the mainstream in the social, political, and economic spheres, as ineffective in or outside the economic syste.s (unemployed, not working), and as nonobservant of the work ethic.I Little secondary data are available on this subgroup, and the stereotype was so powerful it was difficult to ascertain a realistic description of their attitudes and values. Members of this group were usually not active participants in community affairs unless they were particularly dissatisfied with an issue.
Similarly, because of their lack of participation in community activities, little information was available on the attitudes or values of the nursing home residents on growth, environmental issues, change, or community participation.
1 The two members of this subgroup who were interviewed tended to characterize themselves in these terms as well.
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L ___________ _______ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
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1 Group Interaction Interaction between members of the Other Newcomers was concentrated within each of the subgroups, with little contact or interaction occurring between members of different subgroups.1 The " mainstream" newcomers had the greatest intensity of economic interaction, both among themselves and with members of the other subgroups since they were the most active in the local economy. Those in professional or-commercial occupations generally had the most frequent contact with other group members, and there were some employer-ernployee relationships between members of this group. However, because of the proportionately small size of the Other Newcomer group in the Study Area (even smaller in Berrien County) these relationships did not take on special significance or importance.
Within the group in 1967, there was a limited degree of political activity and organization. Representatives of the " mainstream" newcomers solicited group support (primarily from other " mainstream" newcomers) on political issues of concern to them, but this type of activity was constrained by the small size of the group and the diversity of membership.
The social interaction of the Other Newcorners varied according to the subgroup.
Members of the nursing home and Livingston subgroups socialized primarily among themselves, almost to the exclusion of social contact with others. The majority of the
" mainstream" members of this group had little social interaction with other members of their group because their interaction with others in the community was greater.
However, some members of this subgroup restricted social interaction to a small subset of the " mainstream" newcomers.
The Other Newcomers group was not demonstrably cohesive in 1967, even within the subgroups. Few issues had emerged over which members of this group had felt called upon to unite or organize even at the subgroup level. In 1967, there was a tendency for the majority of this group to align themselves with the Longtime Residents and to de-emphasire their position as newcomers outside the dominant group in the area.
l In a study with a different focus or purpose these subgroups could probably have been separated into three different groups rather than aggregated together. I 188
^ ___ _ _ _ _ _ _ _ _ _
8.2.3 Interaction among the Groups The interaction patterns among members of different groups in the period before the initiation of the D.C. Cook project varied considerably. The following discussion is intended to outline the dominant interactions among the three groups in the Study Area and to complete the description of the social structure of the Study Area. The same three spheres of interaction that were considered in the discussion of interaction within groups-economic, political, and social-are utilized to organize the discussion of the
) interactions among the groups.
8.2.3.1 Economic In 1967, the majority of employed area residents held wage and salary jobs in the manufacturing, service, and trade sectors of the Study Area or Berrien County. Most of these jobs were not in businesses controlled by Study Area residents. This reduced the possibility for intensive interaction between the groups in terms of employment or income. Nevertheless, sufficient economic activity involving Study Area residents in employer-employee and buyer-seller relationships occurred to establish some patterns of economic interactions among the groups.
In terms of employment, the principal interaction occurred between the Longtime Residents and the Other Newcomers, with each group providing some employment-and some labor-to the other. In terms of income, the principal exchanges were income for labor (which resulted in an approximately even exchange) and income for merchandise.
Because of the disproportionate size of the three groups, the purchasing power of the Longtime Residents was much greater than that of the other two groups. This made the Other Newcomers who were merchants dependent to a considerable extent on the patronage of the Longtime Residents and created some competition between the Longtime Residents and Other Newcomers for business in the Study Area. The competitive element was minimized somewhat, even in 1967, by the retirement of some of the economically influential Longtime Residents, thus reducing their active participation in the economy.
8.2.3.2 Political During the preconstruction period, political control was in the hands of the Longtime Residents. The Lakeshore Property Owners generally evinced little interest in local politics and participated very little in the political sphere in the Study Area. Some i
of the Other Newcomers also followed this pattern of nonparticipation, but others were i
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interested and involved in local politics, although largely in auxilliary positions. In general, the Other Newcomers who participated in local politics were those who identified most closely with the Longtime Residents and who shared their views on growth and development.
8.2.3.3 Social The major social interactions in the Study Area occurred within groups. In 1967, there was little social interaction between the Lakeshore Property Owners and members of the other two Study Area groups. This meant that the Lakeshore Property Owners were effectively isolated from other Study Area residents. This separation was emphasized by the residential characteristics of the Lakeshore Property Owners-the system of private, posted roads kept most of the other Study Area residents from ever even seeing where the Lakeshore Property Owners lived and enhanced the social distance between the Lakeshore Property Owners and the others in the Study Area.
There was more social interaction between the Longtime Residents and the Other Newcomers; however, most of the formal social organizations in the Study Area were dominated by Longtime Residents. This was particularly true of the Lutheran Church and the fraternal and social clubs where, although Other Newcomers sometimes held memberships, they seldom held positions of leadership. Civic and community activities were important in the Study Area. They were largely organized by Longtime Residents, but provided an opportunity for some of the Other Newcomers to participate actively in valued community activities.
Informal social interaction also occurred primarily among members of the same group. Same of the Longtime Residents and the Other Newcomers were interspersed residentially, which provided opportunities for informal contact and visiting between members of these two groups. In general, the Other Newcomers tended to integrate with their peers in the Longtime Residents group and mix with them socially at civic, school, and recreational events.
8.2.3.4 Study Area Cohesion As indicated by the profiles of the three groups and the patterns of group interaction, the Longtime Residents dominated the economic, political, and social activities of the Study Area. To most people, the Longtime Residents "were" Bridgman/ Lake Township. In 1967, the Lakeshore Property Owners were few in number, 190
---_____n_ _ _ _ _ _ _ _
wcre not integrated into the Study Area economy, politics, or society, and did not id:ntify themselves with the Study Area as a community. The situation was quite similar for a substantial proportion of the Other Newcomers. The remaining Other Newcomers, however, had become well integrated, having established links with the Longtime Residents and identifying closely with them in terms of the community. Because there was high internal cohesion within the Longtime Residents group and because this group dominated the Study Area in terms of interactions with outsidera, the Study Area was
, p;rceived as highly integrated and cohedee.
4 8.3 New Groups in the Study Area during the Study Period No new groups developed in the Study Area during the study period, despite the project-related activity. The new people in-migrating to the Study Area during this j time, including the project-related workers, were incorporated into one of the three exirting groups. Consequently, although the size and composition of the groups changed, the number did not.
8.4 Distribution of the Project Effects to the Groups The effects of the D.C. Cook project on the economy, labor force, population, ecttlement patterns, and government (structure and services) of the Study Area were id ntified and described in Chapters 4 through 7. This section describes the distribution of those effects among the three groups in the Study Area for the two key years-1972 and 1978. The distribution described in this section was derived from available empirical l
cvidence, key informant information, and analytic judgment. As part of the study methodology, this distribution was presented to key informants in each group for verification of its plausibility.
8,4,1 Economic 8.4.1.1 Peak Construction Period,1972 In 1972, as shown in Table 8-2, an estimated 161 residents of the Study Area were working in project-related jobs. Table 8-3 shows that these 161 jobs (and workers) were distributed among the three groups as follows: Longtime Residents-68; Lakeshore Property Owners-0; and Other Newcomers-93. The remaining 2,409 jobs were held by ptrsons residing outside the Study Area. This meant that Longtime Residents obtained 42 percent of the jobs held by Study Area residents, while Other Newcomers held the rcmaining 58 percent-4 prior residents and 89 movers. It is estimated that about 48 Longtime Residents and 89 Other Newcomers were employed directly on the project itrelf.
191 n
t, TABLE 8-2 D.C. COOK NUCLEAR PLANT TOTAL PROJECT EMPLOYMENT EFFECTS STUDY AREA 1972 AND 1978 1972 1978 Indirect Non- Direct Indirect Non-Direct Basic Basic TOTAL Basic Basic Basic TOTAL Basic 72 44 1 8 53 Nonmovers 48 3 21 Movers Accompanied 22 36 -
36 22 - -
by Family 5
Movers Unaccompanied 53 15 - -
15 by Family 53 -
Daily Outside 675 8 683 2,388 - 21 2,409 -
Commuters Total Employment 756 16 773 2,525 3 42 2,570 1 by Place of Work Total Employment by Place of Resi- 81 8 90 dence (Study Area) 137 3 21 161 1 Source: Mountain West Research, Inc.,1980.
TABLE 8-3 D.C. COOK NUCLEAR PLANT APPROXIMATE EMPLOYMENT AND INCOME EFFECTS STUDY AREA RESIDENTS 1972 and 1978 Employment 1972 1978 Income" Basic Nonbsic TOTAL Basic Nonbasic TOTAL 1972 1978 Longtime Residents 50 18 68 38 4 42 $ 959.0 $ 532.3 Lakeshore Property Owners 0 0 0 2 1 3 -
32.3 g Other Newcomers b 90 3 93 42 3 45 1,590.5 578.0 Nonmovers 1 3 4 7 3 10 *25.0 107.8 Movers 89 -
89 35 35 1,565.5 470.2 TOTAL 140 21 161 82 8 90 $2,549.5 $1,142.6
" Thousands of constant 1972 dollars. Totals may not add exactly due to rounding error.
b Total of nonmovers and movers.
Source: Mountain West Research, Inc.,1980.
l Total project-related income earned by Study Area residents in 1972 was estimated at about $2.5 million (6 percent of all project-related income earned in the Study Area). About $960 thousand of this income was earned by Longtime Residents, while 'he remaining $1,590.5 thousand was earned by Other Newcomers, primarily construction workers.
8.4.1.2 Operations Period,1978 By 1978, the number of project-related jobs in the Study Area (by place of work) had declined to an estimated 773. Residents in the Study Area held about 90 (11.6 percent) of these jobs; Longtime Residento held about 42 (46.7 percent); Lakeshore Property Owners about 3 (3.3 percent); and Other Newcomers about 45 (50.0 percent) of the project-related jobs. About 53 (58.9 percent) project-related jobs were held by persons who were already residents of the Study Area, while the remaining 47 jobs were filled by movers.
Total project-related income earned by Study Area residents in 1978 was about
$1.1 million (constant 1972 dollars), or about 11.1 percent of all project-related income earned in the Study Area. Approximately $532 thousand of this income was earned by Longtime Residents; Lakeshore Property Owners earned about $32.3 thousand; and the Other Newcomers earned the remaining $578 thousand (constant 1972 dollars).
8.4.2 Demographic The demographic effects of the project on the county were estimated in Chapter 5 and the total increase in population for the 1967-1978 period was summarized. Of the two possible components of increased population-in-migration and diminished out-migration-only in-migration was found to have had a measurable effect on the Study Area population, and even that was relatively small. The new population was not distributed evenly among the three groups in the Study Area. The Other Newcomers received all the increased population due to the project in 1972-89 workers and 86 accompanying family members for a total of 175 additional people. In 1978, the distribution was much the same, although the numbers were smaller. Of the estimated population increase of 102 persons due to the project, it is estimated that the Other Newcomers group received about 94 persons (35 workers and 59 accompanying f amily members) and that the Lakeshore Property Owners received approximately 8 persons (2 workers and 6 accompanying family members).
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In addition to the population effects due to in-niigration fer employment in project-related jobs, there are strong indications that the D.C. Cook plant caused an add;tional demographic change in the Study Area. By providing the tax that greatly improved the Bridgman School System, the D.C. Cook plant indirectly changed the character of the Study Area by affecting the demographic and social characteristics of the people who selected it as a place of residence. Prior to the improvements to the school system in the 1970s, few, if any, Lakeshore Property Owners with school-aged children chose to live year-round in the Study Area. Similarly, the improvement in the school system made the Study Area an attractive choice for new Other Newcomers who placed a high value on academic achievement and who would otherwise have moved into the St. Joseph or Lakeshore school districts.
It is not clear that the " school effect" caused a change in total population in the Study Area since others might have chosen to move to Bridgman had space been available, but it does appear probable that the character of the in-migrating population was different, given the effects of the project, fro.n what it would have been without them. Until the 1980 census data is available so that the demographic characteristics of the population of the Study Area-by tract-can be examined, it is very difficult to quantify this effect. The trend was, however, verified qualitatively by interviews with Other Newcomers and Lakeshore Property Owners who specified that the good, or improved, schools was one of the principal reasons they chose to live in the Study Area.
The effect of this shift in the character of the in-migrants was to increase the size and alter the demographic composition of the Lakeshore Property Owners group so that there were more people of working ages and more school-aged children, an,1 to alter the character of the " mainstream" subgroup of the Other Newcomers so that there were more people in managerial and other white-collar professions and more people of similar background (large-city origins, more highly educated, and more liberal politically). The significance of these changes in demographic characteristics of the groups was that along with the employment-related demographic changes, they affected the relationships between the groups in the Study Area.
8.4.2.1 Settlement Patterns and Housing The settlement pattern of the Study Area was little affected by the project. As indicated in Chapter 6, there was an expansion and increased concentration of apartment complexes along the Red Arrow Highway in Bridgman that was associated with the 195 l
l
project (at least temporarily); aside from this, the project was not attributed with significant modifications in the existing settlement pattern. In fact, the settlement pattern in the Study Area changed very little over the entire study period, showing remarkable constancy for an eleven-year period.
As shown in Chapter 6, the new housing constructed in the Study Area during the 1968-1978 period constituted only a small proportion of the total housing stock, and thus had little effect on the overall housing characteristics in the Study Area. Consistent with the analysis of the characteristics of the in-coming population, the greatest increase in housing was in Bridgman, where the number of new housing units (between 1968-1978) was 328 compared to 141 in Lake Township. There were more new, single-family units constructed in Lake Township between 1968 and 1978 (127) than in Bridgman (98), but the number of multif amily units in Bridgman (230 in Bridgman, while only 14 in Lake Township) accounted for the difference in total new units. Since the stock of housing in Lake Township in 1970 was larger than that in Bridgman (748 to 675), the pattern of new housing construction is consistent with the population figures (Bridgman increasing, Lake Township decreasing) when the replacement of old units is taken into account.
Housing availability and cost were not identified as problematic in the Study Area during the 1968-1978 period. Although it was noted that rental units were difficult to obtain, there was no indication of a significant price effect due to excess demand. There was also no report of any notable effect on the quality of housing through upgrading or conversion due to the project. Those who benefited economically from the increased housing and real estate activity were largely (almost exclusively) the Longtime Residents, because they were both the landholders and the realtors. This was not considered to have had a major effect on the group, however, since the number of people and the amount of property was limited, much of the investment was by outsiders, and the banks were not local. For example, the largest of these apartment complexes in Bridgman was absentee-owned, but the other two were owned by Longtime Residents.
8.4.2.2 Government and Public Services Chapter 7 presented the analysis of the changes in local government structure, revenues, and expenditures and in the cost and availability of several key public services. Changes in the management and provision of public services were attributed 196
primarily to new revenues and to the participation of new people in the local government process. These hanges were linked to the large new revenues paid by the utility for the D.C. Cook facility.
The focus in this section of Chapter 8 is on the distribution of the effects of these changes in local public revenues and on the ' participation of group members in local governmental affairs.
8.4.2.3 Property Tax Savings One of the major effects of the D.C. Cook project (identified in Chapter 7) was a dscrease in the property tax millage rate for property owners in the Bridgman School Di:trict (which included almost all of the Study Area). As indicated in Chapter 7, discounting the effect on the revenues available to the school and considering only the effcet of the decrease in millage rates on the average homeowners' tax obligation from 1969 to 1978, the average tax on residential property went from $185 in 1969 to $217 in 1974 and then decreased to $142 in 1978 (in constant 1972 dollars). Considering the increasing value of the average home over this period, it is estimated that the average homeowner paid $114 less in 1974 and $198 less in 1978 (constant 1972 dollars) for school district property taxes than if the millage rates had not been reduced because of the D.C. Cook taxes. A high proportion of Longtime Residents were property owners, and the value of their property probably approached the average during the study period.
(There was, of course some range in property holding within the group as indicated above.) The savings to the average Longtime Resident, therefore, were estimated to be close to the average figures-$117 in 1974 and $200 in 1978. Since the Lakeshore Property Owners tended to have property of higher than average value,(and this group was almost exclusively property owners), the savings to them were greater than average in monetary terms.
For the Other Newcomers, the tax savings were more diverse. A relatively high proportion of them, including the nursing home residents and many of the construction workers, were renters who received no direct savings from decreased property taxes (though decreased property taxes may have reduced rents somewhat). Others, particularly the Livingston subgroup, owned lower-value property and, therefore, received smaller tax savings from the lowered millage rates. The " mainstream" subgroup 197
of the Other Newcomers are estimated to have owned property of somewhat above average value, and, therefore, to have received higher than average tax savings.I An additional savings to property owners that was also distributed according to the value of property resulted from the improved fire rating Lake Township received as a consequence of the upgrading of their fire ' equipment and, particularly, from the installation of fire hydrants throughout the township (except in Rosemary Beach, one of the Lakeshore Association areas). This savings accrued to property owners in Lake Township-largely Longtime Residents and some Other Newcomers (mostly the
" mainstream" newcomers).
8.4.2.4 Service Effects The principal project-related service effects identified in Chapter 8 were improvements in the school aystem, installation of the water system in Lake Township (with fire hydrants), and improved fire and ambulance equipment, principally in Lake Township with some overlap in Bridgman. (After the study period, during 1979 and 1980, there was also a project-related improvement in roads in Lake Township-the road expenditures increased in current dollars from $17,000 in 1978 to $133,000 in 1979 and 1980.)
Some of the service effects were unevenly distributed among the three groups.
For example, the new water systein served residents of Lake Township, but many of the Lakeshore Property Owners in Lake Township had wells and did not choose to participate in the water service.
Moreover, aside from the reduction in fire insurance premiums, the distribution of fire and rescue services effects among the groups was more dispersed since there were overlapping jurisdictions and recipmcal assistance agreements between a number of units in the area, which tended to make distinct?cns among recipients less clear-cut. This was true for the expansion of recreational areas in Lake Township as well-these public I It should be noted that there was also a difference in tax burden between residents of Bridgman and Lake Township, but since it was not related to the project it is not discussed here.
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.x - . _ _ _ - _ _ _ _ _ _ _ _ _ _ _ _ _
fccilities served the entire area and were distributed unevenly only by the differential use made of them by the three groups.
Benefits to the school system were also distributed unevenly. Throughout the ctudy period, the Longtime Residents proportionately had more families with school-aged children than did either of the other two groups. A substantial proportion of the Other Nswcomers and the Lakeshore Property Owners were retired, single, or unaccompanied by family, thus reducing the proportion directly receiving the educational service.
To some extent, all members of the community were affected by the change in quality of the services, due to a sense of community appreciation, civic responsibility, and civic pride. This was particularly true of the Bridgman school system, in which most rccidents of the cornmunity, in 1978, expressed pride and appreciation, regardless of whether or not they had children in the system. This sense of community gratification was probably greatest for the Longtime Residents, who by and large had the strongest id:ntification with the community, but it was also noted by Other Newcomers and L:keshore Property Owners.
8.5 Changes in the Social Structure and the Role of the Effects of the Project 8.5.1 Changes in the Profiles of the Gr===
This section describes the major changes in the profiles of each of the groups over the study period and examines the role the project's effects played in those changes.
- 8.5.1.1 Longtime Residento As indicated by the name given them, membership in the Longtime Residents group was dependent on time and residence. Although some " outsiders" were assimilated into this group by marriage or exceptionally long residence in the Study Area (transition from the " mainstream" Other Newcomers), this group expanded primarily through natural increase. Consequently, the size of this group was relatively unaffected by the project.
It is estimated that the size of this group increased gradually, from about 2,850 in 1967
- to about 3,000 in 1978.
During the study period, the trend away from agriculture continued and, by 1978, egriculture played a relatively insignificant role as a means of livelihood-only a few Longtirne Residents were full-time farmers or dairymen. Nevertheless, the culture of an cgricultural community persisted, as many Longtime Residents maintained rural 199 a .
l residential properties and some agricultural area. In addition, commercial nurseries continued to hold a prominent, if not economically significant, position.
During the study period, several Longtime Residents established or expanded manuf acturing corporations in the Study Area. This provided the group with some additional influence and irnportance in the local economy. These new companies, however, were within the traditional sectors prominent in the area and did not cause a shif t in the type of work or sectors. Otherwise, the livelihood of most Longtime Residents was not radically altered during the study period. The number of Longtime Residents employed in project-related jobs (approximately 68 in 1972, and 42 in 1978) was small enough that this employment did not make a substantial difference to the overall employment profiles of the group. In addition to these employment effects, the economic position of Longtime Resident property owners was improved due to the reduction of the school tax rates. Those living in Lake Township also experienced a reduction in fire insurance rates.
No particular changes in the demographic characteristics of the group were noted during the study period. A substantial proportion of the high school graduates from this group continued to remain in the Study Area or nearby, thus continuing the intensity of kin relationships in the area. Nevertheless, as the economy outlook for the Berrien County shifted from one of high growth in the mid-1960s to moderate to relatively low growth during the study period (following the statewide trend), the economic environment for young adult Longtime Residents changed. Although no verification is available until 1980 census results are published, it was thought by many residents of the Study Area that a higher rate of out-rnigration of Longtime Residents occurred during the study period than had occurred previously (see Chapter 4). Neither the geographic location nor property ownership characteristics of the group changed dramatically during the study. The majority of Longtime Residents lived in family-owned, single-family houses throughout the study period. There was some shif ting in and out between Bridgman and Lake Township but, in general, things remained much as they had bee;. at the beginning of the period.
There is some evidence-voting results, for example-that there was some modification in the dominant attitudes of the Longtime Residents during the study period. In general, the group remained in favor of growth, as shown by their support and approval of the programs to encourage economic development by granting tax relief to l
200
- a
businesses, the slight upsurge of the activity of the chamber of commerce, and the justifications given for the development of a sewer system in Lake Township.
Nevertheless, the possibilities for growth were invariably discussed in close association with the need for planning. The proposed plan for the new sewer system in Lake Township (under development in 1978-1980), for example, specified that it be installed gradually, in a pattern designed to encourage controlled development.
According to a study conducted by Dr. William Garland (1979), the Longtime Residents demonstrated a conflicting attitude toward the sand-mining issue, reflecting their dilemma in having to choose between supporting private use of private land and industrial development on the one hand and allowing serious degradation of their environment on the other. This dilemma was intensified for the Longtime Residents because of their strong identity with the community and the physical environment of the Study Area.
This sense of community was also evident in the general response of Longtime Residents to the improved school facilities in the Study Area. These improvements, though they directly benefited only those with school-aged children, were viewed very much in terms of the community and as an expansion of a community resource.
During the early part of the study period, the attitude of Longtime Residents toward community participation became increasingly conservative and restrained. For some, this constraint persisted throughout the study period, while for others it seerned to precipitate a change in the mode of participation to one closer to that of the Other Newcomers. It was suggested that this increased restraint was a reaction to what many Longtime Residents viewed as overly aggressive and intense participation by members of the other groups.
There were no major shif ts in the economic interactions among the Longtime Residents during the study period. The political and social relationships among Longtime Residents did change appreciably. By 1978, there was a much wider range of positions on issues and a much less unified position taken by the group than was taken in 1967. This represented the effects of the demographic shift in the community and within the group, 201
[ i .
including the approach of a major generational transition in community leadership.I The older leaders of the community-all Longtime Residents-were reaching retirement age by 1978. Many had retired, some had lef t, and others held less active positions; however, a sufficient number remained so involved that their replacements in the Longtime Resident group had not yet emerged. Indeed, it was not at all clear that the younger generation of Longtime Residents would produce leaders of the stature or numbers of the previous generations.2 During the study period, a number of issues arose on which the Longtime Residents did not fully support their leaders (largely because their leaders were in disagreement)-the water system dispute between Bridgman and Lake Township, the attempt by Bridgman (on the urging of one government official) to annex part of the township including the D.C. Cook plant, and the continuing squabbles between Bridgman and Lake Township concerning the location and disposition of the proposed public library.3 In all these cases, a number of Longtime Residents felt that the issues were unwarranted and somewhat ridiculous.
According to a number of informants, Lcngtime Residents felt very threatened and uncomfortable about publicly stating their dissatisfaction or disagreement with local political decisions. This was more true in Lake Township than it was in Bridgman, but was quite pervasive. Several of those interviewed attributed this reticence and discomfort to the informal and personal nature of the local governmental process in Lake Township, wherein favors were exchanged and the communication was on a personal basis-which meant that complaints and criticisms were also expected to be made in person (or addressed directly to the person). During the study period, more people began to publicly complain and take action against decisions they disliked. At first, these people were principally Lakeshore Property Owners, but then Other Newcomers and a I This was true of leadership in all three spheres-economic, political, and social-largely because the same individuals (and their spouses) had dominated all three areas.
2 At least in part because some of these roles were being taken by Other Newcomers and even Lakeshore Residents.
3 Most residents felt there should be one public library owned by Bridgman and Lake Township. There was such squabbling about the particular logistics and jurisdictional arrangements that serious consideration was being given to the construction of two new libraries, within about 2 miles of each other.
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few Longtime Residents became involved in the issues regarding the nuclear plant, sand mining, and-to a lesser extent-the annexation effort. As a consequence of the legalistic and confrontative nature of these issues, the leadership role became more problematic and less satisfying for prominent and qualified Longtime Residents. In Bridgman during this period, there was frequent turnover in leadership, and it was reported a number of times in the local newspaper and mentioned frequently in interviews that qualified Longtime Residents were reluctant to run for public office.
Simultaneously, participation in political activities became more of a problem for the majority of Longtime Residents, as the definition of participation began to change.
Based on the analysis, the siting of the Cook facility contributed to this shif t in personal interactions among group members, although it was only one of several forces pushing in this direction during the study period. Especially in Lake Township, the maintenance of the informal, part-time administrative characteristics, despite the massive increase in revenues and governmental activity, was noteworthy.
The changes in the social interactions among Longtime Residents were associated with and similar to those in the political arena. Most of the old social organizations persisted and continued to be dominated by prominent Longtime Residents. The Lutheran Church remained an influential force in the socialization and social control of the Longtime Resident group. During the study period, however, a number of Longtime Residents modified the intensity of their participation with the group for social interaction. This may have been due to a demographic shif t among the young adult cohort of Longtime Residents: just as the improvement in the school system and other public facilities made the Study Area more desirable for better-educated, higher-income newcomers, it also made it more desirable for the young adult Longtime Resident with these characteristics1 .
8.5.1.2 Lakeshore Property Owners The size of the Lakeshore Property Owners group changed during the Study Area in two dimensions. The total number of Lakeshore Property Owners increased as I
additional land in the dunes area was developed into residential subdivisions. In addition, ;
i i
I It is also possible, lacking empirical evidence to confirm either hypothesis, that there were no real changes in group focus or coherence, but only that in retrospect, the group viewed itself as cohesive at that time. However, those interviewed were quite insistent that a change had indeed occurred.
203 l
the number of Lakeshore Property Owners who lived in the Study Area year round increased. The increase in year-round residents came from new retirees, " suburbanites" (those living in the Study Area and commuting daily or weekly to a major urban area, usually Chicago), and other newcomers to the group, primarily those moving into the area for employment in Berrien County. By 1978, Ne s'.ze of the Lakeshore Property Owners group was estimated at about 350, of which approximately 50 to 80 were year-round residents of the Study Area. The influx of newcomers who were working in the Berrien County economy (and, therefore, had an immediate interest in the economic status of the county) and who had purchased their Lakeshore Property as a " primary" home changed the characteristics of this group. These changes were important to the role of this group and to the relationship among groups in the Study Area.
The majority of the Lakeshore Property Owners still obtained their livelihoods from work in the professions or in management (or were retired from such work). As mentioned previously, however, the focus of employment had shif ted somewhat, with a greater number deriving their livelihood within Berrien County (very few in the Study Area).1 This group was almost totally unaffected by the employment created by the D.C. Cook project, although a few Lakeshore Property Owners obtained project-related jobs.2 The income characteristics of this group remained relatively unchanged throughout the study period, although the incomes of some of the newcomers were probably slightly below the average of the older group. The demographic characteristics of the group were altered primarily by the shif ts in year-round residency and the addition of new members who were less likely to have come directly from Chicago and more likely to have school-aged children than previously. In 1967, few children were among the Lakeshore Property Owners-particularly among the year-round residents. Although the number of year-round Lakeshore Property Owners families with children remained small-not more than 15-30 in 1978-these few made a difference for community events and group relationships by drawing these year-round residents into community affairs.
As in 1967, the Lakeshore Property Owners, by definition, were located in the dunes-lakeshore area of the Study Area throughout the study period. In both 1967 and 1
This meant that the boundary between the Lakeshore Property Owners and the Other Newcomers became much less distinct.
2 Plus one lawyer who served as counsel for the opponents of the project.
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1978, almost all were property owners, but property holdings were largely restricted to individual residential units, although some had additional lakeshore property in the Study Area. The value of their residences was estimated to be higher than the average in the Study Area, but not by a great amount. Consequently, the reduction in property tax rates lowered the tax obligations of the group only slightly more than for the other groups and less than for many Longtime Residents.
On the whole, the Lakeshore Property Owners were not affected by the changes in the provision of public services because of the project. Many who lived in Lake Township had private wells and, thus, did not utilize the new township water system. Few had school-aged children, and since the majority did not associate themselves with the Study Area as a community, they generally did not share the sense of improvement felt by most Longtime Residents and many Other Newcomers. To those who did have school-aged children, however, the change in the school system was critical. For some, the improved school system had made a major difference in the residential choice that resulted in their presence in the Study Area. A small number of Lakeshore Property Owners were instrumental in the modifications that occurred in the structure of the local governments in the Study Area (such as the addition and composition of a planning commission in Bridgman and the composition of the school board); however, these changes did not greatly affect the majority of this group, particularly from the groups' perspective.
The principal difference evident in the attitudes and values of the Lakeshore Property Owners between 1967 and 1978 was that some of them were willing and interested in expressing their opinions in the political and social arena of the Study Area. As in 1967, the majority of the Lakeshore Property Owners throughout the study period were not year-round residents of the Study Area, and they continued to disassociate themselves from the Study Area, but the shift in the demographic
) characteristics of the group and the emergence of several issues in which the group as a whole had an interest made both their attitude and their mode of response particularly vivid and pertinent to the Study Area. Some of the most vocal statements from this group were primarily from environmentalists-in opposition to the D.C. Cook plant and l
One of the strongest attitudes held by the members of this group who had the most influence in the community appeared to be one of activism-doing something about the things that mattered to them-in positive as well as negative terms.
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the sand mining. It does not appear that the project changed the attitudes and values of this group so much as it elicited public statements from them. Throughout the study period, however, the majority of the group provided, at best, tacit support to the few who took these public positions.
As in 1967, the economic interaction among group members was extremely limited throughout the study period, with almost no intragroup employment or merchar.dise exchange. The only substantive economic relationship noted was the instance when the members of one of the residential areas united in a suit against the utility, charging that the lake structures associated with the plant's construction damaged their property.
They won an out-of-court monetary settlement.
The nuclear plant and sand-mining issues, as well as additional local government and community issues, elicited greater public participation and involvement by some members of this group during the study period than had occurred previously. During much of the study period, greater political organization and interaction took place among the Lakeshore Property Owners than had previously occurred. This involvement nas largely on specific issues, however, and the intensity of action and emotion involved-and the controversial nature of the positions-caused some discomfort from the community's perspective. In sum, the interaction of group members in political activities was primarily affected by a small proportion of this group becoming highly organized and politically active during the study period. In terms of participation in the local government, this increased organization and activity was largely prompted by the sand-mining issue, but in terms of increased group interaction, the efforts to organize group support and participation in the legal processes for both the D.C. Cook plant and the sand-mining issues were important. There are indications (based on the continued attention of the active members of this group to events at the D.C. Cook plant as well as on statements during interviews) that the D.C. Cook plant alone would probably have been sufficient cause for change in group interaction levels.
The pattern and intensity of social interaction among members of this group also changed during the study period. The year-round members tended to form a social network more intense than that existing when few members stayed permanently in the Study Area. The neighborhoods remained isolated from the rest of the Study Area, which encouraged visiting among those living close together. The intense political activity of the Study Area created a strong social network as well, as many of the planning and 206
praparction msstings hid a tubstantici social compon:nt. Nsvtrth;ltcc, th2 group remained relatively unintegrated socially throughout the study period, with many of the members from different " associations" interacting only infrequently.
8.5.1.3 Other Newcomers Af ter the Longtime Residents, the Othe'r Newcomers were the most affected by the project. All of the incoming construction workers and almost all of the incoming management and operations workers became members of this group. As discussed previously, this group also received a number of new m:mbers attracted to the area because of the improved school system. (Although it is not clear that the actual numbers of people moving into the community was affected by this aspect of the project, these changes may have contributed to a slightly greater increase in the size of this group than would otherwise have occurred.) By 1978, the approximate size of this group was 1,200, which increased their proportion of the Study Area population from about 20 percent in 1967 to about 28 percent in 1978. During the peak construction year (1972), the number of people added to this group because of project-related employment was estimated at about 175. In 1978, the number was 94. If the 1967 estimates are correct, the additional members present because of the project in 1972 constituted an increase in group size of about 25 percent. Because these additional people were distributed among a variety of professions / occupations-including construction, clerical and managerial-they did not constitute a significent subgroup except, perhaps, during the two or three peak construction years.
The two components of this group that increased in size during the study period were the nursing home residents, as additional housing was constructed for them in the Study Area, and the " mainstream" newcomers, to which both the project-related and the other non-project-related in-migrants belonged. The Livingston subgroup remained approximately the same size during the study period. The livelihoods of the Other Newcomers who had been present prior to the project did not change dramatically during the study period. As indicated for the Longtime Residents, without the 1980 census data it is very difficult to determine what shif ts occurredin occupational structure. Based on very limited data, it appears that the ratio of wage and salary workers to proprietors remained relatively constant.
By the end of the study period, there had been a shif t in this group toward more cmployment in white-collar jobs. It is difficult to determine this, however, because the l 207 l l
majority of this group do not work in the Study Area.I However, at dif ferent times during the study period the occupational composition of the group was changed by the influx of additional members with particular occupational characteristics. For example, the project-related in-migrants 69 workers in 1972 and 35 workers in 1978) were largely workers in the construction trades, but the majority of the other in-migrants during the later part of the study period appeared to be iri white-collar occupations, particularly in the professional, commercial, and service sectors.
The residential pattern of the Other Newcomers did not change dramatically during the study period, though their density increased. Some additional residences were constructed in Lake Township, and the apartments and many of the new single-family homes in Eridgman were filled by members of this group.2 Associated with this lack of rnajor change in residential location, property ownership patteras likewise remained reasonably constant over the study period. Some of the " mainstream" newcomers had increased their investment in the community, and a number of this group owned commercial as well as residential property.
The declining school tax rate and improved public services were distributed less evenly among this group than among the Longtime Residents. Those group members who resided in Lake Township and owned property and those who had children were most affected; those living singly in the apartments in Bridgman or in nursing homes were relatively unaffected by the local government changes. Residents of the Livingston area and those living along Red Arrow Highway received the brunt of the traffic effects; in other places in the Study Area, traffic was reasonably well dissipated.
As with the Lakeshore Property Owners, some Other Newcomers were greatly affected by the improved schools, as it was a key element in their residential location decision. Many of this group shared the sense of communal benefit from the improved school f acilities.
l It is easy to draw the wrong impression here because the majority of the newcomers who are visible to an outsider are those in local entrepreneural or professional jobs or are white-collar workers active in community affairs.
2As noted in Chapter 6, there was little effect on the supply or quality of the housing.
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As noted previously, during the study period there was a convergence between some members of the Other Newcomers group and some members of the Lakeshore Property Owners on the one hand, and between some Other Newcomers and some Longtime Residents on the other, which makes it difficult to ascertain clear distincticns in terms of the aggregate population.
Members of the Other Newcomers group continued throughout the study period to l l
represent a range of opinions on many issues. Overall, however, they appear to have remained moderately pro-growth, while at the same time showing concern about the quality of the environment if controls were not imposed. The overall tone of the area remained conservative and Republican-most Other Newcomers still represented these views in 1978 though the group was less coherent and less strong on these positions than it had been in 1967. Several surveys taken during this period (Kimball,1979; Garland, 1979; Metzcus,1979) indicate a rather surprising agreement on the issues of growth, environmental deterioration, and community government among all members of the community.
Because of the diverse nature of the group throughout the study period, few substantial changes in overall group interactions occurred during the study period. Some members of this group became active in the community's economic organizations (e.g., i i
the chamber of commerce), in the political activities (such as the various commissions, '
boards, and council meetings), and in the civic and social activities in the community.
These members made efforts to encourage others in their group to participate, which may have had a small effect on the intensity of contact among group members.
However, in general, the focus of the social and political interaction of this group was j very diverse: tr.me interacted mostly with the Longtime Residents, some with the l Lakeshore Property Owners, and some with only their own group. As in most small towns, members of this group continued to value friendships with neighbors and membership in organizations such as the church.
8.5.2 Changes in the Relationships among the Groups The effect of the D.C. Cook project on the Study Area as a whole and on the cornposition and internal organization of the groups resulted in some important changes in the relationships among the groups over the study period. In many cases, the effects of the project were just one part of a combination of changes that were occurring in the area.
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The links between people in a community are complex; those between groups are certainly no less so. In keeping with the purpose of this study, which is to identify major effects of the construction and operation of a nuclear plant and the methods employed throughout, this section presents only a sketch of the changes in the relationships among tne groups that occurred over the study period and one interpretation of the role the D.C. Cook project played in causing those changes.
8.5.2.1 Economic Aside from the additional jobs created by the project, the structure of the local economy in the Study Area remained relatively unchanged during the study period. The entrance of the project into the local economy introduced a major new business and, therefore, political power into the Study Area. Because the Study Area was a component of a much larger economic system, the impact of the project in terms of employment and income was not particularly large-the proximity of Whirlpool, Clark, and other large manufacturers in the vicinity diluted the effect of the project in those dimensions.
Nevertheless, the presence of the project and its enormous assessed value (i.e., taxes) gave the utility an influence in the Study Area that was readily recognized by most Study Area residents. In general, this influence was not important in the economic arena in the Study Area, largely because of the unbounded nature of the Study Area economy. The number of jobs created by the project, though very large compared to the number of jobs located in the Study Area, was not particularly large when compared to those in Berrien County, and the number of local residents who obtained project-related jobs was small and not enough to make much difference to any of the groups or to the Study Area as a whole. Indeed, examination of the major economic relationships among the groups in the Study Area over the entire study period reveals few ernployer-employee linkages either within or between groups.
The major economic links in the Study Area throughout the 1967-1978 period were between buyers and sellers of merchandise. The utility exerted influence on the economy in the purchase of materials as well as in employment. In general terms, however, the relationships among the groups in these buyer-seller transactions did not change substantially over the study period, although the Other Newcomers may have increased their proportion as both merchants and sellers as the relative size of their group increased. The intergroup trade interactions were principally between the Longtime Residents and the " mainstream" Other Newcomers. It shculd be noted, however, that much of the commercial activity of all Study Area residents took place outside the 210
sconomy of the Study Area and that tourists also played an important role in the c:mmercial activities of the Study Area.
8i5.2.2 Political It was largely in the political arena that the influence of the project was manifest. The importance of the project to the tax base of the Bridgman School District and Lake Township automatically gave the utility great influence in local politics. In cddition, because of the exceptionally political nature of the operation of a nuclear plant in the 1970s and 1980s, the utility was required to attend to the political activity in the Study Area. Consequently, the presence of the utility itself created a substantial change in the composition of the political " groups" in the Study Area and in the relative position of these groups.
The presence of the plant initiated a change in the role of the Lakeshore Property Owners in particular. Previously, they had not participated actively in local politics.
However, a number of them united in their opposition to, and grievances with, the utility and formed an alliance with the environmental groups opposing the project. The utility hid already formed an alliance with the Longtime Residents. The Other Newcomers group was caught in the middle. When, in 1974, the environmental groups officially withdrew 'their opposition to the plant,I the intensity of the interaction between the Lakeshore Property Owners and the environmentalists and between the Longtime Rcsidents and the utility dropped sharply, although the pattern of linkages persisted throughout the study period.
During the study period, the number of Lakeshore Property Owners who were ynar-round residents of the Study Area increased, as did the number of civic-minded, ccademically oriented Other Newcomers, largely because of improvements in the Bridgman School System that had resulted from D.C. Cook tax payments. This change in the composition of the two groups resulted, albeit indirectly, in a major change in the poli +ical relationships among the groups. Some of the Lakeshore Property Owners and come of the Other Newcomers began to participate in local politics through opposition to l the D.C. Cook plant. This set the stage for more direct involvement in local government 1
See Chapter 9 for further discussion of the political issues concerning the D.C.
Cook plant.
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l through participation on the plerming commission and the board of education, which provided political contact among all the groups. In an effort to develop support for the opposition to sand mining, some of the more moderate of the concerned Other Newcomers established a link with some of the less conservative Longtime Residents.
Although the number of people actually participating in these activities initially represented only a small proportion of each 'of the three groups, the result was the establishment of new relationships among the groups and the legitimization (to a substantial proportion of the Longtime Residents) of both a political process and a political position that was relatively new to the Study Area. These relationships were demonstrated in several local political issues (e.g., the school board election in 1979). At the time of the study, the political relationships among the groups appeared to have been substantially altered, with the Other Newcomers and the Lakeshore Property Owners groups moving into a newly influential position in local politics. As a consequence, the Longtime Residents lost exclusive control of the political activity in the Study Area although, at the time of the study, they still retained the top leadership positions.
It should be noted that the D.C. Cook plant's link to these latter changes was that the improved school system (in which project-related taxes played a major role), which resulted in a change in the composition of the population in the Study Area. People concerned and involved with the operation of local government and the quality of education chose to reside there because of the improved school system.
Nevertheless, the overall organization and style of local government, especially the Lake Township government, did not undergo dynamic changes, despite the massive increases in revenues. This was an important general perception in the community-that although more affluent, things were relatively unchanged in terms of the governmental context in which they lived.
8.5.2.3 Social The changes in the social relationships among the three groups parallel those described in the political section. The major change was the formation of social links between portions of the Longtime Residents Group, the Other Newcomers Group, and the Lakeshore Property Owners Group. These links provoked some competition for control of the long-established social organizations that were associated with and led by Longtime Residents.
I 1
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i Aside from this change, which may have been transitory, the social relationships cmong the groups remained during the study period much as they had been in 1967. This la cont.istent with the moderate economic, demographic, and local governmental changes j that were caused by the project, and the lack of active support or violent opposition to the station within the Study Area community.
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CHAPTER 91 PUBLIC RESPONSE 9.1 Introduction The purpose of this chapter is to review and analyze public response to the D.C.
Cook project. The major issues that arose in connection with the project are described to provide a basis for understanding area residents' evaluation of response to the project. Sometimes the issues largely bypassed the Study Area; at other times the local groups were actively involved. Analyzed in this chapter are the roles of Study Area residents and Study Area socioeconomic concerns in the development of the regional public response to the project as well as the regional public response regarding socioeconomic conditions in the Study Area. The chronological description of the issues includes the recorded response at the state, regional, and national levels and the role local groups played in this process.
The focus of this chapter, therefore, is not restricted to the Study Area and Berrien County but also includes regional or national response and participation. In addition, a somewhat extended time frame is used in order to clearly trace the origins and implications of the public response and to include the response made to the accident at Three Mile Island. The time period covered in this chapter extends from 1965 to the time of the study, late 1979.
9.2 Response during the Preconstruction Period The D.C. Cook project was officially announced in July 1967. However, preliminary information concerning the intentions of the utility had been released to the media throughout 1966. Preliminary construction activity began in August 1968.
9.2.1 Announcement The announcements concerning the impending construction of the nuclear station did not result in any major reaction from either the local residents or the federal or state regulatory agencies. Information or speculation concerning the progress toward a siting decision was generally presented along with discussions of the cost of the project and the consequences of its construction on the local tax base. In general, the public reaction of area residents was favorable, especially to the project's anticipated effects on employment and economic activity. To some extent, the preliminary discussions concerning site selection and project initiation decisions heightened the sense that the community would be fortunate if it were chosen as the site. The initiation of such a 1
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major construction project was viewed as a vote of confidence-and therefore as an indicator of economic security-for the local area (newspaper clippings, 1966-1967; key informant interviews, 1979). The announcements concerning I&M's D.C. Cook plant overlapped those concerning the Consumers Power Palisades plant in South Haven (north of Berrien County on Lake Michigan) and Northern Indiana Public Service Company's Bailly Plant in northern Indiana.
One month following the official announcement, I&M had a model of the I&M nuclear power plant displayed in the local Bridgman bank (Bridgman Community Enterprise, 1967). Similar efforts were made to present the project to the public in Berrien County.
9.2.2 Siting The land for the site was purchased for the utility by an agent in the mid- to late 1950s, largely from private individuals. In 1959, I&M revealed the assembly of the large tract of land in the lakeshore area of Lake Township. The plant site was located in the Hathaway School District. The issue arose of jurisdiction over the tax benefits anticipated from the proposed nuclear plant.
Throughout Berrien County in the 1950s and early 1960s, the numerous small l school districts had jockeyed for position in the formation of consolidated school districts. In 1966, as a result of a county school reorganization election, the Hathaway School District, which contained the D.C. Cook site, was absorbed into the Bridgman School District. In general, Hathaway district residents opposed the consolidation, but !
1 they were overwhelmed by the larger numbers in the Bridgman School District who j generally favored the plan. It was clear at the time that great tax benefits would accrue l to the school district if the D.C. Cook plant were actually built on the selected site (News Palladium, 20 July 1967).1 l
1 The media referred to it as a " Tax Bonanza." The news article announcing this was titled "Bridgman Tightens Grip on Atom Tax Boom." (News Palladium, 3 November 1967.)
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9.2.3 Permits and Hearings AEC Construction Permit The application for an Atomic Energy Commission (AEC) license was filed by the utility in December 1967. A request to begin work prior to the issuance of an AEC construction permit was granted in the summer of 1968 af ter I&M had obtained local permits to construct an access road and some ancillary buildings. I&M made a special effort to inform and involve local government and community leaders in the pre-construction process. These efforts proved successful as the applications were supported by the utility, the township representatives, the area Chambers of Commerce, union representatives, and local businessmen. This early site work did not result in any recorded opposition.1 In December 1968, the AEC Advisory Committee on Reactor Safeguards approved the plant. The AEC construction permit for both units was issued in March 1969, following a public hearing in Stevensville in February. Local opposition to the plant came primarily from residents of the St. Joseph area and from lakeshore property owners. Involved environmental groups included Businessmen for the Public Interest, Sierra Club, Western Michigan Environmental Action, and United for Survival. Support for the plant was given by the utility, local businessmen, and local government officials, including the Lake Township Supervisor, representatives of the State of Michigan Water Resources Commission, and the Michigan state agencies of Public Health and Natural Resources. The Lake Township Supervisor stressed the cooperation and helpfulness of the utility and emphasized that local government officials had been kept very well informed. (News Palladuim,14 February 1969).
The major issues raised in opposition to the plant in the one-day construction permit hearings were the effects of the plant on Lake Michigan (especially in conjunction with the five other nuclear plan;s being sited on Lake Michigan) in terms of the shoreline, water quality, and aquatic life (fish and algae), and the radiation / safety hazards of nuclear power. These issues were not resolved to the satisfaction of the l In 1965, I&M entered into an agreement with Manley Brothers, the major sand-mining company in Berrien County, which gave Manley Brothers permission to mine sand from a nonbeach portion of the site. This mining took place between 1965 and 1967. j 216
cpposition groups at this time. A year later, on 1 January 1970, the National Environmental Policy Act (NEPA) became law. This meant that environmental effects, in addition to questions of reactor safety and radiation hazards, could be considered in siting and operation decisions. As a result, these environmental issues resurfaced later during the licensing process.
The Regional Context During the late 1960s and early 1970s, national public concern over safety and environmental issues had increased and was manifest in widespread activity by those who opposed the siting of nuclear stations. Of particular concern in the Great Lakes region was pollution and degradation of the Great Lakes.
Throughout the United States, utility plans for siting nuclear stations were being challenged at the local level by environmental groups and their supporters. Since environmental concerns were the recognized grounds for contentions and formed the basis for effective legal action, individuals and groups concerned with fundamental cafety and ethical issues of nuclear technology (as well as those who felt the proposed project threatened their economic well-being) tended to use arguments showing the j tdverse environmental effects of nuclear plants in order to strengthen their case. This national trend was reflected by events in the State of Michigan. Public concern over the building of the D.C. Cook plant was part of the apprehension of some in the Great Lakes
! and Upper Midwest region over the rapid expansion of nuclear facilities and their i
7 cumulative effects on Lake Michigan and the- residents of the region. As with other nuclear facilities under construction at this time (e.g., Peach Bottom, Calvert Cliffs, and
- Zion), a major contention at the hearings associated with the D.C. Cook plant was the
! cumulative impact of the discharge from multiple facilities into the same water body.
l 6
Although the public interest organizations in the region challenged the siting of specific nuclear plants, many of these efforts overlapped in terms of issues addressed and j participants involved. In general, there was a high level of coordination among the various efforts. Businessmen for the Public Interest, the Sierra Club, and the Great Lckes Federation were involved in the challenges to Commonwealth Edison's Zion plant in Illinois, the Northern Indiana Public Service Company's Bailly plant in Northern i Indiana, and the Consumers Power Company's Palisades plant in Michigan as well as the
- D.C. Cook plant.
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9.3 JNiblic Response between 1969 and 1977 The construction period started with the issuance of the AEC construction permit in March 1969 and continued until December 1975 when the operating license for Unit 2 was issued.1 The outstanding events during this period were the hearings for the issuance and revision of the three U.S. Army Corps of Engineers permits for construction and dredging in Lake Michigan (1969-1973), the AEC extension of the construction permit (1973), and the issuance of the operating licenses (1974 and 1977).
9.3.1 Construction Permit and Hearings Opposition to the issuance of the permits required from the U.S. Army Corps of Engineers and the Michigan Water Resources Commission regarding the use of Lake Michigan for the D.C. Cook plant dominated the public response durir a the 1969-1970 period. For this reason, the chronological summary for this period is keyed to this process. I&M needed permits from the U.S. Army Corps of Engineers for the construction of:
- 1. Intake and discharge structures in Lake Michigan (associated with the cooling systern of the plant).
- 2. A temporary cofferdam (a watertight enclosure built out into the lake and pumped dry to expose the bottorn so that construction may be undertaken);
and
- 3. A temporary deep draf t harbor for equipment used during construction and the delivery of large plant components.
The utility also needed permission from the Michigan Water Resources Commission to use Lake Michigan water for the plant and from the Michigan Department of Natural Resources for easements into the lake. The lakeshore structures elicited opposition from the time the design was made public. The U.S. Army Corps of Engineers permits became the focus of opposition to the design and construction of the project for both direct and strategic reasc' . Because these permits were critical to the design and construction of the cooling system, they were recognized as critical to the project itself.
I Permits issued during the construction phase are included here regardless of their application date.
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The D.C. Cook project was initiated at the same time that the Zion plant (Commonwealth Edison, Illinois), the Bailly plant (Northern Indiana Public Service Company, Indiana) and Palisades plant (Consumers Power Company, Michigan) were under way. All four sites were within a 60-mile radius. Environmental groups, concerned by the proliferation of large scale nuclear projects on the shores of Lake Michigan, had established a firm network of communication and collaboration by the time hearings on the D.C. Cook project were held. A number of the shoreline property own'ers in the Study Area (the local group most active in opposition to the plant) as well as the rnost active representatives of the environmental groups were from the Chicago area. This, along with the compatability of objectives and overlap of concerns, facilitated coalition formation between these two interest groups. The particular concern of the environmental groups (in addition to their opposition to nuclear power itself) was the thermal and radiological pollution of Lake Michigan from the use of once-through cooling systems. A principal objective of their intervention was to force the use of cooling towers in place of once-through cooling systems.1 The opposition to the plant on this issue continued throughout the permitting process until 1974, when it was specifically withdrawn.
Shoreline property owners in Bridgman and Lake Township were also concerned about the immediate effects of construction and operation activities on the shoreline.
Lake Michigan was in a high-water cycle at this time, and beach and sand-dune erosion was a serious problem (especially along the southeastern shoreline). Shoreline residents adjacent to the plant site were concerned that the construction and presence of the cofferdam and the temporary harbor would cause or further aggravate erosion by interrupting the normal pattern of wave action. Opposition to the dam and harbor, including legal suits, continued until December 1973 when the harbor was removed because it was no longer needed. In addition, the lakeshore property owners were concerned that construction activity, and then plant operation, would prevent the 1
Three nuclear plants were under construction on the southeastern shore of Lake l Michigan in 1969-1970 (Palisades, Cook, and Bailly). All three were initially designed l with once-through cooling systems. Largely through the intervention of the coalition of environmental groups, both the Palisades plant and the Bailly plant were modified to utilize cooling towers.
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-o-
l formation of the ice cover in winter that prevented beach erosion by keeping waves away from the shoreline.
In November 1968, the U.S. Army Corps of Engineers and the Michigan Department of Natural Resources held a public meeting on the intake and discharge system and cofferdam permits l at which shoreline residents strongly protested the construction of the cofferdam. When the Corps issued the permit for construction of the temporary cofferdam and related dredging in July 1969, it responded to the protests against the cofferdam by stipulating that the dam be located further north of the I&M property line than originally designed to minimize erosion on properties south of the plant. Further, the Corps stipulated that " beach nourishment" and monitoring programs be implemented, to extend for 18 months after the removal of the cofferdam.
In October 1969, the Corps issued a permit for the construction of the intake and discharge structures, with the stipulation that some revisions in the plan be made.
Acquisition of this permit was considered particularly important by the utility since the Corps (along with the Michigan Department of Natural Resources) was responsible for ruling on the acceptability of the effects of the discharge from the proposed once-through cooling system on plant and fish life.
In November 1969, the Corps held a public hearing on the application for construction of the temporary harbor. About 200 citizens (including shoreline residents, government officials, business representatives from the Study Area, and residents from the St. Joseph area) attended the hearing at which I&M presented revised plans for the intake / discharge system and the temporary harbor. The revised plan for the intake / discharge system included the extension and burial of twin lines 1,160 feet out from the shoreline. The original plan had been for shoreline discharge. These revisions were said to " eliminate dangers of erosion." (News Palladium,19 March 1970.) Local shoreline property owners requested a second hearing on the grounds that they had not had sufficient time to evaluate the revised plans.
1 Also in November 1968, the Michigan Water Resources Commission held a public hearing on the I&M application (filed in May 1968) to use Lake Michigan water in plant operations. The permit was issued in March 1969 (I&M,1971: 11-1).
220 6 - - - - - _ _ _ - . _ _ . _ _ _ _ _ _ _ _ _ _
In early 1970, I&M completed and submitted to the Corps a study on the effects of the warm water discharge from the plant into the lake in response to questions raised by the environtnental groups. In February 1970, the final design of the plant with a once-through cooling system was released. In early March 1970,I&M held a series of meetings for local government officials, residents of the area, and other interested parties to look at the revisions it had made to the cofferdam and to assure them no shoreline damage would result. Senior AEP and I&M personnel were present at these meetings. These meetings were reported to have been well attended. (News Palladium,21 March 1970.)
In mid-March, nine property owners whose property was located south of the plant site filed a suit against I&M charging that the cofferdam had caused massive erosion of both the beach and the dunes, was threatening residents along the lake, and was threatening well water supplies on their properties. They asked for $1 million in damages and a halt to all work on the project that would cause continued erosion.I (South Bend Tribune,11 March 1970.)
The issue of the intake / discharge systern was not localized. At the end of March 1970, a meeting of a United States Senate subcommittee on Energy, Natural Resources, and the Environment (chaired by Senator Hart, Democrat from Michigan) convened in Grand Rapids, Michigan to consider the problems of thermal pollution. Testimony about nuclear power plants on Lake Michigan dominated the meeting. Just prior to the hearing, it was noted in local papers that an official of the Michigan Water Resources Commission indicated that the commission favored the I&M revised plans for heated water discharge. (South Bend Tribune,29 March 1970.)
In April 1970, the second hearing by the U.S. Army Corps of Engineers on the revision to the intake / discharge system and the temporary harbor was attended by between 150 and 300 persons. According to newspaper accounts, participants of the 8 1/2 hour meeting formed two groups. Utility representatives, local government officials (including those from Bridgman and Lake Township) and union business agents urged approval of the applications and cited benefits from the project such as lower electricity 1
The suit was settled out of court in 1971 for an undisclosed sum, and the parties to the suit were enjoined from raising the issue for ten years (parties to the suit, personal communication,1979).
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rates and an increased local tax base. Thus they wanted to avoid further delay. Many of the others in attendance (lakeshore property owners and environmentalists) objected to the applications on the grounds of dangers from thermal pollution, shoreline erosion, and radiation hazards. (South Bend Tribune,12 April 1970; State Journal (Lansing),13 April 1970.)
'In May 1970 the United States Department of the Interior announced a rule that forbade the discharge of water of more than one degree warmer than the ambient temperature of the water at the point of discharge, on the grcunds that discharged hot water would upset the balance of plant and animal life. The Federal Water Quality Administration was to make a final decision on the enforcement and modification of the regulation in "perhaps a year." The design of the D.C. Cook plant would result in a discharge substantially higher than this rule would allow. The implications of this ruling to the Cook plant and the U.S. Army Corps of Engineers permits were left unclear and heightened the uncertainty concerning the scheduling of the project (South Bend Tribune, 13 May 1970).
In June 1970, the Michigan Department of Natural Resources issued an easement to construct water intake and discharge lines. In July 1970, the Secretary of Defense (for the Corps of Engineers) issued a revised permit for the intake and discharge system and to the permit for the construction of the temporary harbor, ruling that neither would cause unacceptable damage to Lake Michigan or the shoreline. (South Bend Tribune,10 July 1970; News Palladium,10 July 1970.)
In October 1970, the Michigan Water Resources Commission voted to support a five-year ban on further construction of nuclear power plants on the Lake Michigan shoreline, pending data from operating plants. Both the D.C. Cook plant and the Palisades plant were to be allowed to operate during the five-year study period.
The skirmishes between I&M and the opponents of the project continued through 1971 and 1972, in part reflecting the national jurisdictional battles over who was responsible for regulating the safety and environmental impacts of nuclear power plants and the national increase in concern over the effects of thermal discharge. Cooling 222 4
tcwers became the focus of concern over thermal pollution.I Local newspapers reflected thi3 national concern with numerous articles on cooling systems during this period (South Bend Tribune, 23 May 1971). As a further indication of the local salience of this issue, sarly in 1971, both Consumers Power (Palisades) and Northern Indiana Public Service Company (Bailly) capitulated to demands of conservation groups and financial pressures.
Both agreed to install cooling towers and to resolve protests regarding thermal pollution I
from intake / discharge systems, although neither was specifically required to do so by any cuthorized agency.
This increased the pressure on I&M from EPA and private environmental groups to also convert to cooling towers. Throughout this period, I&M firmly maintained the polition that:
(1) Their design was sound, it complied with all laws and regulations, and it would cause no damage to the environment; (2) There was no reason to change; (3) The D.C. Cook plant design would not be modified except upon rulings by the authorized public agency; and (4) The imposition of the views of the environmentalists on Palisades represented a breakdown in the rule of law since the imposition was applied from outside the established rules and procedures.
This position was presented to local residents at numerous public information meetings by the utility. The costs to consumers of the delays and cooling towers were pointed out in clllocal media. (I&M,1971; News Palladium,1 April 1971.)
In December 1971, the Michigan Water Resources Commission issued an amended ord;r regarding the outlet design of the intake / discharge system. In July 1972, the U.S.
Army Corps of Engineers issued an additional revision to the permit regarding the intake /
di: charge structures.
In the mean time, since the construction permits for both Unit I and Unit 2 cxpired in November 1973 and January 1974, respectively, I&M requested an extension of its construction permit from AEC in October 1972. This request was granted in late i
I The cover story of the May 1971 Scientific American was on cooling towers.
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October 1972. The justification given for the request was that delays due to bad weather, redesign of reactor components, and labor difficulties had prevented work from proceeding on schedule. In December 1972, Harriet Brooks (one of the Study Area shoreline property owners party to the $1 million suit against I&M concerning the cofferdam) and 16 other intervenors (mostly lakeshore property owners) petitioned the United States Court of Appeals to reverse this extension on the grounds that intervenors.
had been given insufficient notice and opportunity for hearing. In response, AEC sponsored hearings were scheduled. A prehearing conference was held in Grand Rapids in April 1973 at which it was agreed that statements of fact from all parties would be submitted by May 1973. The intervenors' major contentions were that sufficient design changes with safety implications had been made to require a NEPA quality reassessment before the construction permit could be extended. The harbor, cofferdam, and intake / discharge structures were the main elements of concern. The AEC ruled that I&M had shown good cause for the delay, and the construction permit extension remained in ef f ec t. The decision was appealed and upheld by the Atomic Safety and Licensing Appeals Board in May 1973.
In March of 1973, I&M requested a 6-month extension of the temporary harbor permit from expiration on 9 July to 31 December. The main reason given by I&M that the extension was required was that the scope of work had been increased by the modifications of the discharge outlet desired by the EPA and the Michigan Water Resources Commission (Kopper,1973). Lake Township formally supported this request, stating that the temporary harbor would be beneficial to Lake Township in the construction of the intake structures for the new township water system.I Lake Township made a formal request to the Corps of Engineers for extension of the harbor permit to 9 July 1974. A public hearing on these requests was held by the U.S. Army Corps of Engineers in Bridgman in April 1973. Prior to the hearing, the date for a decision was set at June 1973. In June 1973, the Corps granted the harbor extension to 31 December 1973. Opposition continued until the issue became moot when the harbor was removed in December 1973.
In August 1973, the AEC issued the Final Environmental Statement on the D.C.
Cook plant, and in September the Safety Evaluation Report was released.
1 Refer to Chapter 7 for a discussion of the water system in Lake Township. 1 I
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Both of these reports recommended the continuation of the construction permits and approval of the operating licenses for the D.C. Cook plant. .
9.3.2 Operating License and Hearings In December 1972, AEC held a pre-hearing conference of the safety and licensing board on the operating license for the two units of the D.C. Cook plant. Intervenors included Businessmen for the Public Interest, the Sierra Club, the Western Michigan
, Environmental Action Council, the Rosemary Beach Association, the Dunewood Property Owners Association, and a number of private landowners. The conference was open to tha public but not to public comment. Its purpc,3e was to set the procedures for the op3 rating licerse hearing. The environmental groups and the associations combined for joint intervention, and the private property owners (largely the same persons who had brought the $1 million suit) adopted most of the contentions filed by Businessmen for the Public Interest.I The issues mentioned included:
(1) Extension of the construction permit, with focus on the temporary harbor; (2) The emergency plan (it was contended that the plant was inadequate in detailed procedures);
(3) Quality control, especially in welding; (4) Safety-remote shutdown, emergency core cooling, SCRAM failures; and
- 5) Operator training.
As a result of this meeting, a joint " stipulation" was agreed to by all parties. The utility agreed to develop alternatives to the once-through cooling process in the event that the current design resulted in ecological damages and to the imposition of a restriction on Unit 1 to 81 percent of full capacity for a trial period during which time additional data on the operating characteristics would be collected and analyzed.
f (Herald Palladium,18 April 1979.)
i 1
A summer resident of Bridgman and lakeshore property owner acted as council for the Dunewood Association.
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In October 1973, the AEC issued notice of its intent to issue the operating licenses to the D.C. Cook plant.I This action had been encouraged by I&M in an effort to have adequate time to negotiate remaining contentions without causing a delay in the issuance of the operating permits.
On 13 Feburary 1974, the last remaining intervenors withdrew opposition to the issuance of AEC operating licenses for the plant, stating to the licensing board that they had satisfied themselves that their radiological safety and environmental contentions had been sufficiently considered in the design and construction of the plant (Widenhofer, personal communication,1974).
The operating license for Unit 1 was issued in October 1974. It restricted operation of Unit 1 to 81 percent of its rated capacity. A full-power license was issued in May 1976. A full-power operating license for Unit 2 was issued on 23 December 1977.
9.3.3 Other Issues 9.3.3.1 Transmission Lines In July 1970, I&M filed more than a dozen condemnation suits in Benton Harbor Probate Court to obtain rights-of-way for the 345 and 765 kV lines from the D.C. Cook plant to existing lines and substations in Berrien County and northern Indiana (News Palladium, 3 July 1970). The suits sought 50-foot-wide rights-of-way (ROW).
Construction on the ROW would include steel support towers of between 150 and 260 feet. At the time of the announcement of the condemnation suits, I&M had obtained about 96 percent of the required rights-of-way. (News Palladium, 22 July 1970.) About 20 of the property owners identified in the suit were residents of Berrien County. None were residents of Bridgman or Lake Township. No change in transmission line routes or major public response resulted from this action.
9.3.3.2 Local Government Issues Related to Project Effects 1
The D.C. Cook site is located in Lake Township. The tax structure in Berrien County resulted in large property tax benefits to Berrien County, Lake Township, and the Bridgman School District from the very large assessed valuation of the project. Property I In November 1974, I&M halted construction on Unit 2 due to economic pressure and focused effort on the completion of Unit 1.
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taxes were levied on the site and project after 1969. The impact of the project on property taxes was noted consistently, well before the official announcement of the project was made in 1967. Thus, jurisdiction over the D.C. Cook site became an issue not only to the Bridgman School District, as discussed previously, but also to the City of Bridgman.
In 1975, the Bridgman City Commission announced a proposal to annex the D.C.
! Cook plant from Lake Township. A motion was filed by the commission with the State Boundary Commission in February 1975. The grounds for the proposed annexation were that the city required $6.5 million in improvement funds necessary for the continued expansion and improvement of city services, in particular sewage facilities for which the city had neither space nor funds. This money, it was argued by city officials, could be derived from taxes on the Cook plant. Lake Township, offended by the action, opposed the annexation, stating that it would isolate a portion of the township and divide I&M property, and that the boundaries of the annexed area were designed to include fewer than 100 residents in order to avoid the legal requirement for a referendum. I&M also opposed the annexation.1 Michigan' State Law makes annexation difficult, and the State Boundary Commission ruled against the annexation in 1976. The governmental relationship between Lake Township and Bridgman was not enhanced by this issue.
(Herald Palladium, 31 December 1975; Lake Township Supervisor, personal communication,1979; Mayor of Bridgman, personal communication,1979.)
9.3.4 Summary of Hearings and Litigation during the 1969-1977 Period The hearings and legal contests regarding the Cook plant were most intense from 1968 through 1973. By early 1974, opposition to the operation of the plant had been withdrawn. The major opponents of the D.C. Cook plant were residents of the Upper Great Lakes Region, in collaboration with property owners in the Study Area. In Berrien County, the greatest opposition came from Study Area lakeshore property owners and residents of the St. Joseph urban area. In general, the concerns and strategies of the major opponents meshed closely, and a well-organized and coordinated intervention effort involving both area residents and outsiders emerged. Additional intensity and 1
3ridgman property tax rates were approximately twice as high as those of Lake Township, and I&M had established an exceptionally good working relationship with Township officials.
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attention was given to the opposition of the nuclear plants on the southeastern shore of Lake Michigan due to their overlapping schedules and the coincidental rise in concern and organization to address pollution of the Great Lakes. This activity and interest was not limited to environmental groups, but had spread to the regulatory and governmental agencies in the four states bordering Lake Michigan. D.C. Cook was part of the " wave" of nuclear power plants proposed and under. construction in 1969-1970. This rapid expansion of nuclear power, a new technology, was also a factor in the attention and concern directed toward the permitting process.
9.4 Public Response during 1978 and 1979 On the D.C. Cook project, there was no clear distinction between the construction and operation periods. Many of the permits and licenses that were applied for and contested during the construction period concerned operating conditions and characteristics. The initial years of the operation of Unit 1 overlapped the completion of ccnstruction on Unit 2 so that both periods existed simultaneously. No major issues arose in the interval between the completion of Unit 1 in 1975 and of Unit 2 in 1978 regarding the operation of Unit 1. The issuance of the operating license for Unit 2, part of the major negotiation process of the construction period, did not occur until 23 December 1977. Consequently, the operations period will be considered to begin at this date and extend to the end of 1979,1 the time of the study. No major issues emerged during this period, although concerns over public safety persisted throughout, focusing principally on risks of low level radiation, thermal pollution, and disposal of spent fuel. None rose to a level of even moderate intensity for most area residents, however.
9.4.1 Public Relations The establishment of good relations between I&M and the local residents was a prime objective of the company from the initiation of the project. An indication of the importance given to this aspect of corporate activity and to the approach taken was the participation of Donald C. Cook's (president of AEP) in the specification that the 1This extends examination of the public response one year longer than the 1976-1978 study period of the remainder of the report in order to examine the public response to the Three Mile Island accident. 1 228
. ~ . _ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Visitors' Center at the Cook plant had to be "first class" and was to be given a high priority in construction activity. The center was designed to become a notable tourist cttraction and community center for the area.
The Visitors' Center opened in July 1970. A news media day was held shortly after the opening, which resulted in considerable cdverage of the center and the D.C. Cook project in loca!, regional, and national news media. The National Broadcasting Company (NBC), for example, called the center the " Greatest Michigan tourist attraction since the House of David,"I and gave it five minutes on the Chicago news. The center was opened early in the construction phase of both units, and visitors were invited to observe the progress of construction.
Particular attention was paid to the establishment of I&M as a good neighbor-one concerned about the local residents and governmental processess-who would construct a plant of the finest quality and operate it safely. A Berrien County native son was named as plant manager. Contact was made with local officials and community groups through numeroue information meetings held by I&M and appearances at local events by company spokesmen.
Throughout both the construction and operation periods, the company, led by public relations efforts, established and maintained a tone of concern, cordiality, responsiveness, and above all, civility, which was influential in shaping the interactions with intervenors, protestors, and supporters alike. This approach diffused the intensity of confrontation and established a strong base of graviroots confidence in, and support l of, the plant.
In addition, the relationship established between the company and local government officials resulted not only in their public support for the project during the hearings in 1970-73, but also in numerous public statements concerning the benefits of 2
the Cook plant to the community. Of particular importance to the Study Area was the sznse of generosity the company established with local residents with its policy of t
I The House of David was an amusement center / tourist attraction famous throughout Michigan.
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%f making the Visitors' Center available for civic and community activities, its participation in fund drives and community activities and, most of all, by the impression it managed to give of not begrudging the tax payments it made to local jurisdictions.
9.4.2 Operations Safety The D.C. Cook plant had the reputation of being a well-designed, well-constructed, and well-operated station. Following withdrawal of legal opposition by the intervenors and the issuance of the operating licenses, participation of regional opponents diminished, and a period of transition ensued for the local opponents of nuclear power. Once the permitting process was completed, the opportunity for active intervention by opponents of the plant or of nuclear power shif ted from a legal to a more public forum.
Local opponents to the Cook plant, and to nuclear power in general, had entered the regional antinuclear network during the licensing period. They had continued to participate in and keep in touch with the regional activities of the large, organized groups such as the Great Lakes Federation, Bailly Alliance, United for Survival, and Businessmen for the Public Interest.
From the Inid-1970s to the time of the study, sand mining emerged as an additional local environmental issue, and this diverted much of the attention and energy of those local residents concerned over or opposed to the D.C. Cook plant. The sand dunes in Berrien County were ideal for sand mining because of the large quantities of exposed, high quality sand.1 Opposition to sand-mining resulted in the formation of two new environmental organizations, the Grand-Mere Association (St. Joseph-Lincoln Township area) and Hope for the Dunes (Bridgman/ Lake Township), whose membership included many of those actively opposed to the Cook plant. However, although attention was diverted, opposition to the Cook plant persisted, though opponents represented a very small proportion of residents in either the Study Area or Berrien County.
In November 1978, an antinuclear, environmental organization, the Coho Alliance, was formed by several St. Joseph residents. This group opposed nuclear power and 1 Untreated sand from the Study Area dunes could be used for sand casting. I 230
- ________ _ ____ __ - _ L __ _ __ _ _____ ______
advocated the development of renewable energy resources and conservation.1 TMs group, primarily centered in the St. Joseph area, responded to most operating "occurrances" at the Cook plant with inquiries and letters to the editor of the local papers. The group held or sponsored several rallys and fund-raising events in 1978 and 1979. Its members were adamantly oppo:2ed to nuclear power and, therefore, the Cook plant. Although the Coho Alliance was recognized as the leading local opposition group, its membership was limited and its support, especially in the Study Area, was not 4 widespread. The principal issues emphasized. by the group were radiation hazards, operating safety, and waste storage. (South Bend Tribune,29 May 1979.)
9.4.3 The Accident at Three Mile Island The accident at Three Mile Island (TMI) plant in Pennsylvania occurred in late March and early April 1979. It was an important news event throughout the country, and particularly in Berrien County and the Study Area. Local and regional newspapers and television stations all carried items on the accident and compared the design characteristics of the TMI plant to those of the D.C. Cook facility. Reporters and researchers interviewed local citizens, and news stories discussed the plant's design, opsrating characteristics, and emergency evacuation plans.
The D.C. Cook Visitors' Center received numerous inquiries from local residents.
In general, the reaction of Berrien County and Study Area residents and organizations was one of concern during the accident period, followed by heightened attention to emergency planning and plant operations.
The Three Mile Island accident and rising public opposition to nuclear power prompted the State of Michigan in May 1979 to establish a special 10-member joint
! legislative committee to study the potential dangers of Michigan's four nuclear plants.
! The committee was to prepare a report and make recommendations to the legislature by December 1980, however, no clear-cut recommendations had been made prior to the l closure of this study.
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For example, they were active proponents of the Michigan can deposit bill. The Coho Alliance staged an antinuclear march in June 1979 that ended with a rally at the Cook site. I&M gave permission for the protestors to use the site, assisted with logistics, and provided microphones and so forth to the group. (Herald Palladium,10 June 1970.)
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l At the time of the study, the long term consequences of the Three Mile Island accident remained unclear, as many decisions regarding the need for changes in regulations had not yet been finalized, and the long term effects on public, and hence political opinion, had not yet become clear. During the six to eight months immediately following the accident, no major changes or effects were evident in the Study Area.
9.4.4 Emergency Preparedness Attention to emergency preparedness also persisted af ter the accident. In May 1979, I&M, the Michigan State Police (nuclear civil protection section), the Federal Civil Defense Preparedness Agency, and local government representatives held a workshop to review emergency plans regarding an accident at Cook. The State Police called the nuclear disaster plan in Berrien County the "rnost advanced" (South Bend Tribune,10 May 1979). The plan specified lines of authority and methods of co.nmunication with the public and evacuation routes. In the f all of 1979, a public meeting was called by AEC to review the new NRC criteria concerning emergency evacuation plans. These meetings were held at the D.C. Cook Visitors' Center and attracted media representatives, officials, and a few county residents (South Bend Tribune, 18 September 1979).
Evacuation plans involving a 10-mile radius were prepared by October 1979, with work continuing on plans for a 50-mile radius (Herald Palladium,17 October 1979).
9 4.5 Spent Fuel Storage The issue of spent fuel storage also received attention in the period following the TMI accident at both the state and locallevels.
In November 1978, I&M requested the NRC to authorize an increase in the spent fuel storage capacity at the Cook plant. The request was not publicized, but a public notice was made in the Federal Register in January 1979. Because no response was made to this notice by February 1979, the NRC stated that they would not be required to hold a public hearing on the request and indicated that they would rule on the I&M proposal.
I&M planned to start replacing storage racks in August 1979 to expand the Cook storage capacity from 500 to 2,050 fuel assemblies. (Herald Palladium,14 April 1979.) When the proposal and proposed action came to their attention, those in opposition hastened to arouse support for a public hearing. A Study Area (lakeshore) resident circulated and submitted a petition for a hearing with 2,409 signatures to state and federal officials (South Bend Tribune, 25 April 1979). The Michigan Attorney General, alerted by the Study Area resident, directed his staff to determine whether it was possible for the state 232
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to intervene and force a public hearing (Herald Palladium,18 April 1979). Pressure was also applied by United States Senator Carl Levin, a Democrat from Michigan (South Bend Tribune,17 April 1980).
On 17 May 1979, Governor Milliken of Michigan announced that at his request, the NRC had agreed to hold a public meeting on the expansion of spent fuel storage at the Cook plant (Community Enterprise,17 May 1979).
I In May 1979, the Lake Michigan Federation asked the NRC to halt construction work on all Lake Michigan nuclear plants and to prevent storage of radioactive waste near the lake. In July, the group held a series of workshops for civic leaders on alternatives to the six operating plants on Lake Michigan. It is not known whether any Barrien County or Study Area residents participated in these workshops (South Bend Tribune,8 May 1979). Despite additional efforts by those opposing the plant to obtain a public hearing, the NRC remained firm in their decision that only public meetings would ba held.I By the end of May, no date had yet been set for the public meetings, which the NRC determined would be informal and would not constitute a legal intervention. The rsason given by the NRC for the delay was their heavy workload regarding other plants during the immediate post-TMI period (Herald Palladium, 30 May 1979).
The public meeting on spent fuel storage was held on 29 August 1979 at the Bridgman High School. About 150 people attended the meeting at which an Environmental Impact Statement prepared by NRC technical staff was presented which concluded that increasing the spent fuel storage at D.C. Cook would have no adverse impact on the environment. Opponents of the expcasion had wanted a full hearing and complained that they had not had adequate time to prepare a response to the statement (South Bend Tribune,30 August 1979; Community Enterprise,13 September 1979).
In October, the NRC ruled that I&M could expand the spent fuel storage at the D.C. Cook plant (Herald Palladium, 30 October 1979). This ruling was made despite a 1979 Michigan law that banned permanent storage of spent fuel in the state (Herald Pt.lladium,30 August 1979).
1 Public meetings do not allow discussion from the audience, while public hearings do.
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Interviews for this study were being conducted at the time of the spent fuel storage expansion meetings in Bridgman. Despite the irnmediacy of the issue, most local area residents did not mention waste storage in the course of the interviews unless the topic was specifically raised by the interviewer. The overwhelming impression obtained from these interviews was that the majority of Study Area residents were neither particularly attentive to nor concerned with the storage of spent nuclear fuel at the Cook plant. Respondents in general coaveyed a strong belief that the I&M plant was safely and responsibly run and that such technical questions were best lef t to the experts, by which many clearly meant I&M.
9.5 Summary 9.5.1 Public Concerns over the Station The major issues that emerged concerning the D.C. Cook plant were focused on shoreline erosion, water quality, and public safety. The questions of assessing these effects, mitigating their impacts, monitoring and controlling them during plant operations, and providing adequate planning for potential problems were all complex technical and political issues. Jurisdictional questions concerning the administrative processes for permit issuance and public hearings arose during the long and complicated legal procedures required in the construction and operation of a nuclear station. In the course of the D.C. Cook project, representatives from all levels of government-both elected officials and administrative staff-and a variety of private citizens, public interest organizations, and members of the media became involved in the D.C. Cook project.
9.5.2 Role of Study Area Residents in the Public Response Two sets of Study Area residents were actively involved in the public response to the Cook project. The first of these were local government officials, the long-time Bridgman residents, and townspeople who supported the D.C. Cook project.
Representatives of the Study Area governments, particularly the Lake Township Supervisor and other key Study Area residents, were kept informed of the utility's plans and provided support to the utility during the hearing and permit process. Of particular importance (and a good illustration of the role of these supporters) was the assistance provided to I&M by the timely application of Lake Township for the extension of the temporary harbor and the township's public support of the utility in its request for extension. This is not to say that the approval of the harbor extension did not serve the purposes of the township (for the construction of the intake system of the new water 234 r__---____________ .. __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
cystem) or the purposes of the utility, but that it demonstrated the sense of joint purpose that had been established with these local residents.
The very strong and unwavering support of the utility and the project by the majority of the long-time Study Area residents undoubtedly influenced the tone of the opposition' to the project by making those opposed to the project appear contentious and unre'presentative of the majority. The unacceptiveness of most long-time residents to
- the more vehement arguments of those opposed to the project may have dampened the public fervor of the opponents.
3
! The second set of Study Area residents who were actively involved in the public
~
responsej were lakeshore residents, many of whom were part-tima residents from the i
Chicago, area'. Within this group, the course of the public response was set primarily by the organizational energy and committment. of a few individuals. The orientation of these key lakeshore residents was close to that of the major environmental groups who acted as "outside" ir:tervenors. In some cases, there was active affiliation between them prior to the projec+ refore, the tactics and objectives of the lakeshore participants and the environn: o eoups corresponded well. For this reason, despite the relatively small number of " local" opponents to the project, they were highly influential in setting the pattern and path of intervention, to the extent that the overall cause of the public response in opposition to the project must be considered a collaboration between these two groups.
9 5.3 Effects of Public Response on Groups in the Study Area The public response affected not only the specific decisions regarding the project, but it also had considerable influence on what and how information became available to nonparticipating local residents. Because of its location midhray between two other nuclear plants under construction, much of the response to the Cook plant was framed in terms of " generic" rather than plant-specific issues. This wds true despite the heavy involvement of local residents with a very particular, site-specific complaint about i
shoreline erosion, and it may have tended to make the oppos;icionsto the project appear more abstract and less immediate to the majority of Study Ared and Berrien County residents. This effect may have been enhanced by ,the posture of the utility, which generally made an effort (quite successful) to minimize the perceived effect of the intervenors on project design or schedule and to maintain an impression of utility a
initiative and control.
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However, an effort was also made by the utility to point out the costs and delays caused by the permitting and licensing process, so it is difficult to assess the net effect on public perception.
There are strong indications that the majority of the long-time Bridgman residents had an aversion to public contention and dit,pute, which made the tactics of the inter 7enors both impleasant and threatening. However, the immediacy and relative frequency of the debates concerning the project and the outcomes ensuing from the process underlined both the positive and negative aspects of this combative mode of public participation and decision-making. What effect this had on the area residents-particularly in terms of public participation-is not entirely clear, but one function it did serve was to highlight for everyone in the Study Area some of the differences between "those Chicego people" and "those Bridgman people" on an important local issue.
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CHAPTER 10: EVALUATION AND SIGNIFICANCE OF THE SOCIOECONOMIC EFFECTS OF THE D.C. COOK NUCLEAR PLANT 10.1 Introduction The purpose of this chapter is to provide an evaluation of the effects of the D.C.
Cook plant on the Study Area The discussion focuses on the evaluation of the individual and cumulative effects of the project by each group and a discussion of the significance
, of the project for the community. It is based on analyses of the public response and interviews with members from each group. The evaluations presented in this chapter are premised on the analyses of the existing environmental and project effects developed in Chapters 4 through 8. The significance of the project was based on consideration of the size, magnitude, duration, and prevalence of the effects, and on their perceived l importance to the community.
The study period extended over eleven years: from 1967, when the project was l formally announced, until 1978, the last complete year prior to the field work for the study. The study focused on delineating effects at two time periods peak construction I
(1972) and an operations year (1978). The effects of the project on community residents was described in Chapter 8.
10.2 Evaluation of the Effects of the Project by Groups in the Study Area In Chapter 8, the effects of the D.C. Cook project on each of the three groups in the Study Area were discussed. The issues and public response that resulted from the construction and operation of the nuclear station were explored in Chapter 9 This section of Chapter 10 considers the relationship between the effects of the project, the characteristics of the groups, and the evaluation of those effects by group members.
10.2.1 The Longtime Residents The Longtime Residents received most of the employment and income from the project that went to local area residents (nonmovers). However, the size of this effect was small; project-related employment never constituted an important percentage of the jobs held by Longtime Residents. Nevertheless, because the Inembers of this group were dependent upon the economy of the county (and Michigan), a positive value was placed on I the stimulation to the economy given by the D.C. Cook plant.
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The population and housing effects of the project, overall, were minimal. The only group whose size was substantially affected by in-migration due to the project were the Other Newcomers. However, these in-migrants (175 in 1972) were mostly construction workers and their f amilies who were in the community only temporarily.
Given the diverse character of the Other Newcomers group and its rapid growth due to causes other than the project, the project-related population effect was consid-rad insignificant. Therefore, although the Longtime Residents group grew proportionately smaller during the study period because of in-migrants, this was not-and was not perceived to be-a project-related effect. Members of this group consistently indicated that few housing or population effects had been caused by the project and indicated clearly that these effects were of little consequence to the group.
In both objective and subjective terms, the greatest effects of the D.C. Cook project on the Study Area and on each group were the governmental and fiscal effects.
The payment of property taxes on the D.C. Cook facility dramatically changed the cost and availability of public education and other key services in the Study Area; the taxes both improved the quality and scope of services and decreased the tax rate. The sheer magnitude of the tax payments made by the utility were impressive to the Longtime Residents, who had struggled with school financing for many years. Their strong identification with the community increased their sense of collective benefit from improved public facilities, particularly the school system.
These consideraticas were salient to the Longtime Residents, who were aware of the origins of the largess. The utility (and the nuclear plant) was willingly and assiduously given credit by Longtime Residents for the taxes paid and service benefits realized. As discussed in Chapter 9, the cooperative manner of the utility contributed substantially to this evaluation. The degree to which this feeling was held by Longtime Residents (and some of the Other Newcomers) was indicated by the frequency with which members of this group sought confirmation from the utility that participation in (and provision of information to) the study were approved by the utility.
Interviews with members of all three groups in the Study Area made evident the sense of encroachment and " loss of control" over community affairs felt by many of the Longtime Residents-particularly the older, more influential ones-due to the increased, and increasingly effective, participation of Lakeshore Property Owners and Other Newcomers. Although it appears that this participation was related to the taxes paid by 238
the utility and the improvements in the public school system that resulted from them, this analysis was not commonly made in the Study Area. In general, the majority of the Longtime Residents viewed the change in political control negatively. Lacking the analytic links between the political change and the D.C. Cook plant, this negative evaluation was not transferred to the utility or the project. Consequently, although a number of Longtime Residents felt that the political and social character of the Study Area had changed for the worse, they did not usually ascribe this change to the D.C.
Cook plant. Instead, the D.C. Cook plant received a strongly positive evaluation for its contribution to the area's economy, to the fiscal well-being of the local government and to the quality of the Bridgman schools. The utility was also commended for its role as a
" good neighbor."
The accident at Three Mile Island appears not to have shaken this group's positive evaluation of the project. Although the presence of the D.C. Cook plant had undoubtedly drawn the group's attention to the fact that the safety of nuclear f acilities had become a nation wide issue, most continued to express firm conviction that the plant represented no threat to the health and safety of the community residents.
Overall, this group tended to think of the D.C. Cook plant in terms of the jobs it had created, the tax revenues it had contributed, and the positive relationships that had developed between area residents and the utility and its employees.
10.2.2 Lakeshore Property Owners Throughout the study period, the majority of the Lakeshore Property Owners had only limited participation in the local area's events. Their principal concern in the Study Area throughout the period was preservation of their property and the surrounding environs. The D.C. Cook plant, especially in the early years, was considered a threat to this prime interest. Economically, and in terms of facilities and services, most Lakeshore Property Owners were little affected by and, therefore, not particularly interested in, project effects. Aside from the reduction in property taxes due to the lowering of the Bridgman School District millage rates, most Lakeshore Property Owners perceived few benefits from the project. However, although this was true for the majority, it was not true for all. There was a relatively small number of Lakeshore Property Owners who were much affected by the improved school system and who acknowledged the importance of the D.C. Cook plant in those improvements.
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In terms of political organization, the majority of Lakeshore Property Owners were only minimally affected, and some viewed the greater public participation and influence as a burden rather than a benefit. A smaller proportion of this group was anxious for political involvement and influence and considered these changes beneficial.
Overall, the evaluation of the effects of the D.C. Cook plant by the Lakeshore Property Owners was presented as neutral to slightly negative. Those who had opposed the project during the permit process remained opposed throughout the study period. Their conviction that nuclear f acilities should be prevented was deepened by the accident at Three Mile Island. Those vehemently opposed to nuclear power worked actively together, but got relatively little support or encouragement from the majority of the group or from others of the community.
10.2.3 Other Newcomers Little is known about the evaluation of the project effects by the nursing home residents, and the evaluative information obtained from or about the Livingston subgroup was sufficiently idiosyncratic to preclude a generalization of their evaluation of project effects.
The Other Newcomers as a group, however, received the greatest economic, demographic, and housing effects of the project, largely because the in-migrating construction workers were part of this group. Nevertheless, aside from the temporary construction workers (who were largely gone by 1977), the economic effects on this group were small. In general, the economic effects were considered noticeable and positive, but not significant. This group also received benefits from the improved services and reduced tax rates. These were the effects for which the project was known, and its contribution to the community resources was readily acknowledged and given a strong, positive evaluation, although the tax effects were less evenly distributed among group members than arnong either the Longtime Residents or the Lakeshore Property Owners due to the higher rate of renters in the group.
According to the analysis presented in Chapter 8, the characteristics of the Other Newcomers who arrived in the area late in the study period were influenced by the improved quality of schools. This was readily acknowledged by members of the group but, as with the Lakeshore Property Owners, the link to the D.C. Cook project was seldom made. Members of this group, overall, tended to value the improvements in the 240
1 l
l school system, not only in terms of benefits to their own children but to the community as well.
The Other Newcomers indicated an improved sense of control and participation in community affairs at the end of the study period. Their increased internal interaction and the broadening of contact between Longtime Residents and Lakeshore Property Owners were reported to have changed their sense of position in the political and social scheme of things in a positive way. In general, however, group members did not attribute these changes to the D.C. Cook project.
10.3 Significance of the Effects of the Project Overall, the plant was rated as very positive by Longtime Residents, positive by Other Newcomers, and neutral to problematic by Lakeshore Property Owners.
The economic effects-employment, income, fiscal-were considered to be benefits by all the groups, but the magnitude of the employment, income, population, and housing effects on Study Area groups was small and was generally considered of little i
overall importance. In general, these effects were considered favorable, but more significant in principle than in actuality. The only project effects that were considered of substantial significance to the objective conditions of the community were the fiscal effects, and these were considered very positive. By far the most important fiscal effects, according to area residents, were the opportunities they provided for improvement in facilities. The reduction in tax rates was generally considered of a benefit, but of substantially lesser consequence.
The changes in the social structure that appear to have occurred as a result of the project were viewed as beneficial by some and as detrimental by others. They were usually not attributed by Study Area residents to the project, but rather to the natural course of events in which outside forces cause change in community characteristics and organization.
Overall, the residents of the Study Area considered the utility to have been a good and beneficient neighbor that caused little disruption or cost to the community. It was thought that the utility had made, and would continue to make, a major and much needed contribution to the general welfare of the community through its tax payments, and responsible operation of the generating facility.
241
Compared to the changes that occurred in the county and the entire country over the study period, the effects of tlie project were generally viewed as of only moderate or minimal significmce, largely because of the magnitude of the population and economy of the greater Benton Harbor-St Joseph area. Few residents in the Study Area gave any indication that they felt the siting of the plant had had a significant effect on the course of their life.
During the early years, the project was viewed as a mechanisrn by which the community could participate in, and benefit from, the age of the " peaceful atom" and the progressive image of hosting this majcr effort in modern technology. This perspective was never entirely lost, and the community generally continued to appreciate the opportunity to participate in economic and national development.
S 242
l BIBLIOGRAPHY American Electric Power n.d. Review of an Eventful Year. Excerpts from AEP Annual Report for 1974, pp.7, 8,18,19 and 35.
1971 Environmental Report For Don'al'd C. Cook Nuclear Plant. Dockets 50-315 and 50-316.
1974- Job-Site Man Power Tabulations.
1978 Berrien County Parks and Recreation Commission n.d. Berrien County Directory of Parks and Recreational Facilities.
Berrien Countt Planning Commission n.d. Report Series.
1971 Berrien County, Michigan Housing Study,1971.
1973 Agricultural Land Use Study, April,1973.
1974 Berrien County, Michigan, Development Plan.
1975 1974-1975 Educational Directory.
1976 Overall Economic Development Plan for Berrien County, Michigan,1976-1977 Annual Report.
1978 Planning Laws, Rural Township Planning Commission Act.
1978 Township Rural Zoning Act 184, Berrien County, Michigan.
1978 Township Rural Zoning Act 184, Berrien County, Michigan (revised).
Berrien County Planning Commission in Cooperation with Driker Associates,Inc.
1969 Regional Economic Trends Study.
1970 Long-Range Development Guide for Berrien County, Michigan.
1971 School and Neighborhood Study. ,
1972 Mobile Home Park Study, 1972 Proposed Industrial and Commercial Land Use Plan.
243 w._
l BIBLIOGRAPHY (continued)
Berrien County Planning Commission in Cooperation with Twin-Cities Area Chamber of Commerce, Office of Economic Development 1975 Overall Economic Development Plan for Berrien County, Michigan.
Bridgman Public School District 1978 Open House Schedule F.C. Reed Middle School.
Carney, James (ed.)
1976 Berrien Bicentennial. Stevensville, Michigan.
Clemente, Frank and Gene Summers 1973 Industrial Development and the Elderly: A Longitudinal Analysis. Journal of Gerontology, 28: 479-483.
Coolidge, Orville W.
1906 A Twentieth Century History of Berrien County, Michigan. Chicago, Illinois: Lewis Publishing Co.
D' Antonio, William and Howard Ehrlich; Eugene Erickson.
1962 Further Notes on the Study of Community Power. American Sociological Review 27(6): 848-854 D' Antonio, William and William H. Form 1965 Influentials in Two Border Cities: A Study in Community Decision-Making. South Bend, Indiana: University of Notre Dame.
Driker Associates, Inc.
1968 Berrien County, Michigan Land Use Survey and Analysis.
1968 Berrien County Natural Features Study.
1969 Berrien County, Michigan Regional Economic Trends Study.
1970 Long-Range Development Guide for Berrien County.
1971 Berrien County, Michigan School and Neighborhood Plan.
Dunbar, W.F.
1965 Michigan. Grand Rapids, Michigan: William Eerdmans Publishing Company.
l 244
i 1
e BIBLIOGRAPHY (continued)
Enis, Franklin 1880 History of Berrien and Van Buren Counties, Michigan. Philadelphia, Pennsylvania: Lippincott and Company Press.
Gendlin, Frances 1971 The Palisades Protest: A Pattern of Citizen Intervention. Bulletin of the Atomic Scientists, 53-56.
Gladhart, P.M. and Patricia Britten 1978 The Impact of Rapid Population Growth on Housing, Public Service Needs and Citizen Priorities in a Rural Community. Report #366. Lansing, Michigan: Michigan State University, Agricultural Experiment Station.
Hastings, Matthew; Margaret Cawley; Frank Clemente.
1979 Socioeconomic Impacts of Power Plants: Community Leaders' Viewpoints, Interim Report. University Park, Pennsylvania: Pennsylvania State University, Center for the Study of Environmental Policy.
Henderson, E.
v 1979 D.C. Cook Nuclear Plant Construction Cost Analysis. F t. Wayne, Indiana: Indiana and Michigan Electric Company. (Mimeographed).
Indiana & Michigan Electric Company n.d. Environmental Effects of the D.C. Cook Nuclear Plant.
n.d. Summary of Environmental Considerations Extension of Permit for Existing Safe Harbor to December 31,1973. Bridgman, Michigan: Donald C. Cook Nuclear Plant. (Mimeographed) 1967. Indiana and Michigan Electric Company, Annual Report,1967.
1971 Environmental Report for Donald C. Cook Nuclear Plant. Docket Nos.
50-315 and 50-316.
1971 Supplement to Environmental Report for Donald C. Cook Nuclear Plant, Lake Township, Berrien County, Michigan. AEC Dockets 50-315 and 50-316.
1979 Donald C. Cook Nuclear Plant, Units No.1 & 2, Annual Environmental Operating Report, January 1 through December 31, 1978. Docket Nos.
50-315 and 50-316.
245 b mummmmme a
BIBLIOGRAPIIY (continued)
International City Management Association 1979 The Municipal Year Book. Washington, D.C.: International City Management Association.
Kneese, Allen V.
1975 Mitigating the Undesirable Aspects of Boomtown Development. Energy Development of the Rocky Mountain Region: Goals and Concerns, Federation of Rocky Mountain States,Inc. 74-76.
Koper Robert, Executive Vice President,I&MP 1973 Letter to District Engineer, Detroit Division, Corps of Engineers.
1973 Letter to Lakeshore Residents.
Lake Township Planning Commission 1979 Lake Township Sketch Development Plan, Berrien County.
Lewis, Ferris E.
1974 State and Local Government in Michigan. 7th edition, 6th revision.
Hillsdale Educational Publishers, Inc. U.S.A.
Malhotra, Suresh and Diane Manninen 1979 A Preliminary Report Socioeconomic Impact Assessments: Profile _
Analysis of Worker Surveys Conducted at Nuclear Power Plant Construction Sites. Seattle, Washington: Battelle MemorialInstitute.
McKee, Russell 1966 Great Lakes Country. New York, New York: Thomas Crowell Company.
Merton, R.K.
1949 Social Theory and Social Structure. Glencoe, Illinois: Tree Press.
Olsen, Marvin and Donna Merwin 1977 Toward a Methodology for Conducting Social Impact Assessments Using Quality of Life Social Indicators. Finsterbusch and Wolf (eds.)
Methodology of Social Impact Assessment. Stroudsburg, Pennsylvania:
Dowden, Hutchinson, Inc.
Rand McNally 1978 Road Atlas. Chicago, Illinois: Rand McNally & Company.
1 246
BIBLIOGRAPHY (continued)
Reber, L. Benjamin 1925 His_ tory of St. Joseph. St. Joseph, Michigan: St. Joseph Chamber of Commerce.
Seiler, Lauren H. and Gene Summers 1974 Locating Community Boundaries: An Integration of Theory and Empirical Techniques. Sociological Methods and Research, 2:259-280.
Shaffer, Ron 1978 The Economic Impact of Industry on Nonmetropolitan Communities.
Paper given at Association of American Geographers Annual Meeting, New Orleans, Louisiana.
Sommers, Lawrence, ed.
1977 Atlas of Michigan. Grand Rapids, Michigan: Michigan State University Press.
Southwestern Michigan Regional Planning Commission 1977 Framework Study of Area Housing Needs in Southwestern Michigan.
1978 District Overall Economic Development Program.
Summers, Gene; Sharon Evans; Frank Clemente et al.
1976 Industrial Invasion of Nonmetropolitan America: A Quarter Century of Experience. New York, New York: Praeger Publishing Inc.
U.S. Atomic Energy Commission, Directorate of Licensing.
197'2 Final Environmental Statement Relating to Operation of Zion Nuclear Power Station Units 1 and 2. Dockets 50-295 and 50-304.
1974 Supplement No. 4 to the Safety Evaluation Report, Donald C. Cook Nuclear Plant, Unit 1. Docket 50-315.
U.S. Department of Commerce, Bureau of the Census.
1963 Census of the Population: 1960, Vol.1, Characteristics of the Population, Part 24, Michigan.
1964 Census of the Population: 1960, Vol.1, Characteristics of the Population, Part 1, United States Summary .
1969 U.S. Census of Business,1967, Retail Trade, Michigan. BC67-RA24.
1969 U.S. Census of Business,1967, Wholesale Trade, Michigan. BC67-WA24.
247
l BIBLIOGRAPHY (continued)
U.S. Department of Commerce, Bureau of the Census.
1972 Census of Housing: 1970, Detailed Housing Characteristics, Final Report. HC (1)-B15, BSI.
1972 1972 Census of Retail Trade, Vol. 2, Area Statistics, Part II Iowa-N. Carolina 23-78.
1973 Census of Population: 1970, Vol.1, Characteristics of the Population, Part 1, United States Summary, Section 1.
1973 Census of Population: 1970, Vol.1, Characteristics of the Population, Part 24, Michigan.
1974 U.S. Census of Retail Trade,1972 Area Series, Michigan. RC 72-A-23.
1974 U.S. Census of Wholesale Trade,1972, Area Series, Michigan. WC72- A-23.
1977 Statistical Abstract of the United States: 1977 (98th edition).
1979 1977 Economic Censuses, Advance Report Geographic Area Statistics, 1977, Census of Retail Trade. RC 77-A-23(A).
U.S. Department of Commerce, Bureau of Economic Analysis, n.d. RerSonal Employment by Industry, 1940-1970.
1977 Local Area PersonalIncome, 1970-1975. Vols. I and 4.
1978 Local Area PersonalIncome, 1971-1976. Vols. I and 4.
U.S. Department of Commerce, Bureau of Economic Analysis, Regional Economic Measurement Division.
n.d. Unpublished Employment Data Computed by Mountain West Research, Inc.
U.S. Department of Housing and Urban Development.
1974 Comprehensive Housing Market Analysis of Benton Harbor, Michigan.
U.S. Department of Interior, National Park Service.
1959 Great Lakes Shoreline Recreation Area Survey-Rem aining Shoreline Opportunities in Minnesota, Wisconsin, Illinois, Indiana, Ohio, Michigan, Pennsylvania, and New York.
248
BIBLIOGRAPHY (continued)
U.S. Nuclear Regulatory Commission, Directorate of Licensing.
1973 Safety Evaluation of the Donald C. Cook Nuclear Plant Units 1 and 2.
Docket Nos. 50-315 and 50-316.
U.S. Nuclear Regulatory Commission, Office of Nuclear Reactor Regulation.
1976 Safety Evaluation Report Related to Operation of Donald C. Cook i
Nuclear Plant Unit 1. Supplement No. 5. Docket No. 50-315.
1976 Safety Evaluation Report Related to Operation of Donald C. Cook Nuclear Plant Unit 1. Supplement No. 6. Docket No. 50-315.
1977 Safety Evaluation Report Related to Operation of Donald C. Cook Nuclear Plant Unit 2. Supplement No. 7. Docket No. 50-316.
1977 Supplement No. I to the Final Environmental Statement Related to Operation of Donald C. Cook Nuclear Plant. Unit Nos. I and 2. Docket Nos. 50-315 and 50-316. NUREG-0385.
Van Buren County Equalization Department. Equalization Committee.
1977 1977 Van Buren County Apportionment Report.
1978 1978 Van Buren County Apportionment Report.
Verway, David (ed.)
1978 Michigan Statistical Abstract. (13th Edition) Lansing, Michigan: Michigan State University.
Warren, Roland 1978 The Comrnunity in America. (3rd Edition) Chicago, Illinois: Rand McNally.
Wilkening, E.A. and David McGranahan 1978 Correlates of Subjective Well-Being in Northern Wisconsin. Social Indicators Research. 211-234.
1 249
l PERSONAL COMMUNICATIONS Allen, Terry; Executive Vice President, PEMCO Die Casting, Bridgman, Michigan.
Anthony, Paron; Assistant Planning Director, Berrien County Planning Office, St. Joseph, Michigan.
Arsenault, Frank; I&MP Security, Bridgman, Michigan.
Asselin, Donna; Environmental Advisor for Governor Milliken; member, Shore Line and Grand Mere Associations; resident, St. Joseph, Michigan.
Baldwin Jr., Bun; Realtor, Baldwin Real Estate; president of Chamber of Commerce, Bridgman, Michigan.
Bembenek, James; Mayor, City of Bridgman; teacher, Lake Shore School System, Bridgman, Michigan.
Benner, Katherine; Resident, St. Joseph, Michigan.
Bertweit, Robert; Employment Security Commission, St. Joseph, Michigan.
Borah, Ken; Accounting Department, I&MP, Bridgman, Michigan.
Brohan, Robert; Owner, Custom Products; president Chamber of Commerce, St. Joseph, Michigan.
Brooks, Harriet; Resident, Livingston Beach, Bridgman, Michigan.
Christensen, Ron; President, Bridgman Chamber of Commerce; manager, Mid-Michigan Telephone Co., Bridgman, Michigan.
Clark, Donna; Organizer, United for Survival, Stevensville, Michigan.
Clemente, Franke; Professor, Pennsylvania State University, State College, Pennsylvania.
Crocker, Dorothea; President, Bridgman Chamber of Commerce; magistrate, Bridgman, Michigan.
Dailey, Paul; Accounting Department, AEP, New York, New York.
l 250
3 y
PERSONAL COMMUNICATIONS (continued)
Denman, Candy; Employee, Bridgman Community Enterprise, Bridgman, Michigan.
Dobson, Wayne; AEP, New York, New York.
Dosboy, Debbie; Employee, Bridgman Community Enterpris3 Bridgman, Michigan.
Funk, Everett; Systems and Procedu*es Analyst and Supervisor, I&ME, Ft. Wayne, Indiana.
Fleming, Dick; Accounting Department, I&MP, Bridgman, Michigan.
Garland, William; Department of Anthropology, Western Michigan University, Kalamazoo, Michigan.
Gebherd, Bill; Southwest Michigan Regional Planning Commission, St. Joseph, Michigan.
Gill, Barbara; Bendix Corporation, St. Joseph, Michigan.
Gillespie, Paul; City Commissioner, St. Joseph, Michigan; owner, Gillespie Drug Store.
Gore, Joe; Construction supervisor, I&MP, Bridgman, Michigan.
Hartwig, Marge; Member, United for Survival; student, Lake Michigan College, St. Joseph, Michigan.
Hauch, Ernest; Township Representative, Southwestern Michigan Regional Planning Commission, St. Joseph, Michigan.
Henderson, E.;
Accounting Department, I&ME, Ft. Wayne, Indiana.
Heyn, Bill; County Treasurer, Lake Township, Bridgman, Michigan.
Hilderbrand, Rich; Supervisor, Lake Township Water Treatment Plant, Bridgman, Michigan.
Hills, John; Public Relations Director, I&ME, Bridgman, Michigan.
Hoffman, Shirley; Realtor, Red Arrow Highway Realty, Bridgman, Michigan.
25I
- __ ___ _____-________? _ _ _
T PERSONAL COMMUNICATIONS (continued)
Housand, Mary; Realtor, Bun Baldwin Company.
Johnson, Bill & Gertie; Grand Mere Area residents; owners, Bills Tap, Baroda, Michigan.
Johnson, H.K.;
Tax Specialist,I&ME, Ft. Wayne, Michigan.
Jones, Beth; Livingston Area resident, Lake Township, Michign.
Jurgensen, Robert; Chief Nuclear Engineer (previous I&M Plant Manager), New York, New York.
Kenny, kon; Owner, All-Phase Electric, Benton Habor, Michigan.
Kerly, Bud; Owner, Kerly Sales, Inc., Stevensville, Michigan.
Kimball, Bill; Resource Development D epar' m ent, Michigan State University, E. Lansing, Michigan.
Kerincic, Mary Alice; Organizer, Hope for the Dunes, Bridgman, Michigan.
Klemm, Frank; Manager, Gast Manuf acturing; business leader, Bridgman, Michigan.
Knuth, William; Manager, Sales & Engineering, Weldun International, Bridgman, Michigan.
Krueger, Dolly Rambo; Public Relations, D.C. Cook; owner, Krieger Wholesale Nursery, Inc., Bridgman, Michigan.
Krumrie, Mrs. Lester; Owner, Oakwood Apartments, Bridgman, Michigan.
LaForest, Paul; Assistant Business Agent, Boilermakers Local 169,
Dearborn,
Lechner, David Dr.;
Superintendent of Schools, Bridgman School System, Bridgman, Michigan.
Leonard, Ed; Owner, Leonard Real Estate, Bridgman, Michigan.
252
s PERSONAL COMMUNICATIONS (continued)
Linderman, Evelyn and Horace; Owner and Editor, Bridgman Comrotmity Enterprise, Bridgman, Michigan.
Lozeau, Sr., Joe; Postmaster; past president, Chamber of Commerce, Bridgman, Michigan.
MacDonald, Mr. and Mrs. Harrison; i Property owners, Wildwood Area, Bridgman, Michigan.
McAllister, Mike; I&MP, Bridgman, Michigan.
McGrath, Tom; Owner, McGrath's Restaurant and Bar; Pipefitter, Stevensville, Michigan.
Mierau, Charles; Owner and editor, Lakeshore Courier, Berrien Springs, Michigan.
Musgrove, Clare; Public Policy and Extension Office, County Building, Benton Harbor, Michigan.
Nehring, Ted; Resident, St. Joseph and Bridgman, Michigan.
Oliver, Kathy; Accounting, I&MP, Bridgman, Michigan.
Ott, Alvin; Baroda Village Clerk, Baroda, Michigan.
Ott, Leona; Baroda Village Clerk, Baroda, Michigan.
i Rafferty, Carol; Realtor, Drier Real Estate, Bridgman, Michigan.
Rasmussen, Horld; Business Agent, Boilermakers Local 169,
Dearborn,
Rawlinson, Fran; Equalization Director, Berrien County, Benton Harbor, Michigan.
Reck, Elsie; Lake Township Clerk, Lake Township, Michigan.
Root, Pat; Twin Cities Area Chamber of Commerce, St. Joseph, Michigan.
Roth, Marilyn; Librarian, Bridgman, Michigan.
253
i PERSONAL COMMUNICATIONS (continued)
Scheer, Danny; Manager, Weldun International, Bridgman, Michigan.
Schmidt, Fred; School Superintendent, Lake Shore School District, Stevensville, Michigan.
Schoenfelder, Bernice; Clerk, Stevensville Village, Stevensville, Michigan.
Schroeter, Gordon; Tax Equalization Office, Berrien County, Benton Harbor, Michigan.
Shaller, Del; Plant Manager (Operations), I&MP, Bridgman, Michigan.
Shuler, Wade; Lake Township Supervisor, Baroda, Michigan.
Shuppert, Charles; Business Agent, Roofers Local 23, South Bend, Inciana.
Simmons, Alma; Manager, Clark-Construction Machinery Division, Benton Harbor, Michigan.
Sizer, Steve; Public Relations, Whirlpool Corporation, Benton Harbor, Michigan.
Streffling, Emil; Owner, Streffling Real Estate, Baroda, Michigan.
Stuhlmann, A. H.;
Accounting Manager, I&ME, Fort Wayne, Indiana.
Tretheway, Bernice; Lincoln Township Supervisor, Stevensville, Michigan.
Towler, Bruce; Business agent, Plumbers and Fitters Local 190, Ypsilanti, Michigan.
Versew, Jan; Manager, CETA Office, Benton Harbor, Michigan.
Voita, Girlie and Joe; Residents, Dunewood, Stevensville, Michigan.
Walsh, Florence and Richard; Residents, Bridgman, Michigan; organizers, Hope for the Dunes.
Webber, Phyllis; Clerk, Bridgman City, Bridgman, Michigan.
254
, PERSONAL COMMUNICATIONS (continued) i Widenholer, Warren W.;
Public Relations, I&ME, Fort Wayne, Indiana.
[ Wilson, Sharon; Organizer, United for Survival; resident, St. Joseph, Michigan.
Wyckoff, Phil; Construction specialist, I&MP, Bridgman, Michigan.
i l
Yops, Roma; Realtor, Red Arrow Realty, Bridgman, Michigan.
Zelmer, Norman; Fire Chief, Lake Township Fire Department, Bridgman, Michigan.
255
.9 PERSONAL COMMUNICATIONS (continued)
Additional Personnel, Agencies, and Companies Contacted:
Agricultural Extension Service, Benton Harbor, Michigan.
Auto Specialties Corp., Personnel /Employusent Manager, St. Joseph, Michigan.
Baroda Township, Clerk, Baroda, Michigan.
Benton Harbor City Hall, Clerk, Benton Harbor, Michigan.
Benton Harbor City Hall, Personnel Office, Clerk, Benton Harbor, Michigan.
Benton Township, Controller, Benton Harbor, Michigan.
Berrien County Department of Public Works, Administrative Assistant, Berrie.2 County, Michigan.
Bridgman Casting Center, Inc., several long-time employees, Bridgman, Michigan.
Gast Manufacturing, employees, Bridgman and Benton Harbor, Michigan.
I Heath Company, Personnel Manager, St. Joseph, Michigan.
Michigan Employment Security Commission, Area Economic Analyst and other personnel, Kalamazoo, Michigan.
Berrien County Planning Office, Planner, Berrien County, Benton Harbor, Michigan.
Saint Joseph City Hall, Clerk, St. Joseph, Michigan.
Saint Joseph City Hall, Personnel Department, Clerk, St. Joseph, Michigan.
Saint Joseph Township, Manager, St. Joseph, Michigan.
South Western Michigan Board of Realtors, Office Manager, St. Joseph, Michigan.
Berrien County Tax Equalization Office, Berrien County, Benton Harbor, Michigan.
.v . - > w w.v . new crrer., m s.m.v.m m 256
f,RC Poau 335 u.s. NUCLE AR REGULATORY COMMIS$10N BIBLIOGRAPHIC CATA SHEET NUREG/CR-2749 p3, 4 4 TITLE AND SUBTITLE LAdd Volume lvo. of nooraormate) 2 (Leave Diavh)
Socioeconomic Impacts of Nuclear Generating Stations:
D. C. Cook Case Study 3 RECIPIE N T'S ACCESSION NO.
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1982 9 PE HF OHMING OHGANilATION N AME AND MAILING ADDHE SS IInclu.# l.p Codel DATE HEPOHT ISSUED Mountain West Research, Inc. w/ Social Impact Research, Inc, " "'"
1414 W. Broadway, Suite 228 Areis Building, Suite 427 July 1982 Tempe, AZ 85282 2366 Eastlake Avenue East 6 '"*" "'"*'
Seattle, WA 98101 a rt ,,,e u.,, . ,
12 SPONSOHiNG OHG ANil ATION N AME AND M AILING ADDHE SS (Include / p Codel 10 PHOJE CT T ASKtWOHK UNIT NO Division of Health, Siting and Waste Management Office of Nuclear Regulatory Research 11 FIN NO U.S. Nuclear Regulatory Commission Washington, D. C. 20555 B6268 13 T Y PE Of REPOHi FE HsOD COV E HE D tinclusive datesl Technical Report Oct. 1, 1978 to Jan. 4, 1982 15 SUPPL E ME N T AH f NO TE S 14 Il esve adr'. /
i l 16 ABSTR ACT (200 vvords on less/
This report documents a case study of the socioeconomic impacts of the construction and operation of the D. C. Cook nuclear power station. It is part of a major post-licensing study of the socioeconomic impacts at twelve nuclear power stations. The case study covers the period beginning with the announcement of plans to construct the reactor and ending in the period, 1980-81. The case study deals with changes in the economy, population, settlement patterns and housing, local government and public services, social structure, and public response in the study area during the construction /
operation of the reactor.
A regional modeling approach is used to trace the impact of construction / operation on the local economy, labor market, and housing market. Emphasis in the study is on the attribution of socioeconomic impacts to the reactor or other causal factors. As part of the study of local public response to the construction / operation of the reactor, the effects of the Three Mile Island accident are examined.
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