Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts

Monday, July 22, 2013

Critical Mass on University Boulevard


Univ Blvd 3
University Boulevard in Moon Township, looking south from the entrance to the Robert Morris University-owned Holiday Inn. Note the absence of a center turn lane and sidewalks, as well as the utility lines in close proximity to the roadway.                        Credit: Google Maps
In the course of growing up and working in the northwest suburbs of Pittsburgh, I learned to develop a love/hate relationship with a stretch of road in Moon Township now known as University Boulevard.

It's been known by that name since 2003, when the Moon Supervisors changed the name, in part, to "promote one of (Moon's) many assets and one of its largest employers, Robert Morris University", according to a Beaver County Times story.

Prior to that, the road went by two names - Narrows Run Road from Thorn Run Road up to the intersection with Brodhead Road, where it became Beers School Road to the end at what is now Business I-376.

Aside from any humor associated with Robert Morris changing from a "beer school" to a "university", the name change does make sense, even if the road itself largely fails to live up to its namesake. 10 years after the fact, there is still no dedicated left turn lane to access RMU's main entrance if coming from the east. This will be a recurring theme down the page.

We All Live in the (old) Yellow Submarine...

As RMU has grown, it has naturally sought more student housing. In late 2011 it acquired the struggling Holiday Inn Airport, where it houses some students and stated at the time of the purchase their eventual intent to turn the facility into a dorm in toto. Those of you who spent your formative adult years in this area may remember the hotel fondly for the Yellow Submarine nightclub in the basement.

RMU's stated 3-year plan to convert the building to a dorm is apparently being accelerated, with the announcement this past week that the hotel will close in preparation for full dormitory operations in August.

They need a zoning variance from Moon Township to accomplish this, and not everyone is pleased, for "varying" reasons. Moon Supervisors were quoted in the media expressing significant concerns over traffic flow on University - specifically with the current amount of cars traveling this state-maintained roadway, and the potential for more with the development of a new Walmart store at the site of the former West Hills Shopping Center. They also don't like the prospect of the property being largely taken off the tax rolls.

Township officials also cited the lack of pedestrian walkways, and the already established difficulty in turning left out of the facility onto University to head toward campus - one factor that an RMU Vice President dismissed by asserting that "students living at the Holiday Inn would not be driving to campus".

It made me wonder how exactly the school would go about accomplishing that - denying campus parking permits to residents of the proposed "Yorktown Hall"? Regardless, a shuttle service still has to make that left turn, and enterprising college students can indeed opt to walk or ride bicycles - just like their younger counterparts at Moon Area High School, right across the street.

That's right - the school complex, which includes Moon's stadium and athletic fields, also sits along this stretch of University, along with several other hotels and commercial establishments that sprung up from the 1960's through the 1980's, when the old Airport was located just a fraction of a mile away. This corridor abuts residential areas to the east as well.

Wait Just a Minute, Bobby U...

The Moon Supervisors held a public hearing on July 1, which they continued to this evening after taking testimony and conducting a lengthy executive session, which caused the meeting to extend past midnight.

Based on these media reports, it seems that RMU's timetable for closing the hotel, laying off 60 people, and readying the building for conversion into a dormitory in time for move-in day did not anticipate these regulatory difficulties. Eyewitness accounts from the meeting seemed to indicate that RMU representatives were surprised by the community push-back.

It sounds as if both the issues and stakeholder concerns are sufficiently complex as to warrant a closer look at...well, everything.

I am inclined to agree - The media reports seemed to indicate that discussions about traffic improvements only focused on sidewalks. While I'm not anything approaching a traffic engineer, I don't think it takes that background to see that it's a mess up there on many fronts, with the potential to only get worse with additional development and traffic loading.
Univ Blvd Master
University Boulevard seen south of Moon Clinton Road, with businesses and other facilities labeled.   Credit: Google Maps / John Linko
Things Can Only Get Better...uh, right?

As illustrated above, there are numerous commercial entrances and exits along the stretch of University south of Moon Clinton Road. Many of these entrances are not coordinated, and many parking lots are isolated from one another. The roadway itself is inadequate - it lacks a center turn lane, which would facilitate turn-offs into these local businesses, as well as provide for a smooth transition into left turn lanes at signaled intersections - like the one at the main RMU campus entrance.

Speaking of signaled intersections, there is half of one at Tiger Trail (the entrance to the school complex) that could be expanded into a 4-way intersection, to provide egress from the collective parking areas of the Holiday Inn, Doubletree Hotel, and Hampton Inn. The existing entry/exit points could be converted into entrances only, with the new intersection providing an additional entrance and a safe, signaled exit for the proposed dormitory and adjacent hotels. I've tried to rough this out in the illustration below.

Univ Blvd 2
Close-up of area at intersection of University and Tiger Trail, with illustration of how traffic could flow through the dormitory and hotels to a new 4-way intersection.            Credit: Google Maps / John Linko
New Kid on the Block

Among the numerous other things that would have to happen to make this feasible are connecting the proposed dormitory's parking areas to those of the Doubletree, and securing easements for the property between the two buildings, which is the former location of Betlyn Heating.

This is the property marked as DACOH /Covelli, which currently hosts a seemingly unoccupied house and outbuilding that likely pre-dates the surrounding development, along with numerous mature trees and a large grassy area in front of the Doubletree.

DACOH Holdings LLC is the new owner as of this past April, according to Allegheny County property records. DACOH is the real estate holdings arm of Covelli Enterprises, a Warren, Ohio-based company which describes itself as the "largest franchisee of Panera and O'Charley's" restaurants.

Does this mean that a Panera Bread or other establishment could be coming to this corridor in the near future as well? What does that portend for the traffic situation?

Moon Township Manager Jeanne Creese, contacted last week, stated that the township has received no development application from the new owners, and had no other information beyond knowing that the property was sold. Messages left for DACOH's Pennsylvania representative were not returned.

Fail to Plan...Plan to Fail

Ms. Creese also stated that PennDOT requires a traffic impact study from those desiring to make development changes that may affect roadway capacity. PennDOT District 11 spokesman Steve Cowan, responding to an e-mail inquiry, stated that a traffic study for the intersection at Business 376 was completed in 2009, and that "We are not aware of any other planned activities on University".

That study was executed for Moon Township's Transportation Authority, described on the Township website as "established in 1987 to promote economic and infrastructure development in Moon Township".

This authority was also in the news recently, as the Moon Area School Board voted July 15 to end its relationship with the authority, a move that find its resolution only in the courts. This appears to be a very shortsighted action on the part of the school district, given what seems to be an obvious need for cooperation to manage traffic literally at the doorstep of the district's core facilities.

Hopping Away 

When thinking about what happens when too many things are going on in one general area at the same time, the term critical mass pops into my head. There are several definitions for this, depending on the context in which it is being used. In physics, it defines "the smallest amount of fissile material needed for a sustained nuclear chain reaction". 

That's what this gradual ramping up of activity along University Boulevard feels like to me, along with the feeling that this traffic corridor is a pot full of water on a stove, and we commuters, consumers, students, and full-time residents are all frogs in that pot.
What happens when the heat starts to get turned up?

Without any improvements in traffic flow management, along with reasonable development controls and other coordination efforts, what will an autumn Saturday look like in the future, when it's quite possible that typical Saturday traffic in and out of Walmart and Giant Eagle will be complicated by a youth basketball tournament at Moon High School and an RMU home football game - all at the same time?

I know one thing - there will be a new Walmart in Economy Borough before there is one in Moon, and it will likely be a lot easier for me to get to.

Hope in Collaboration

There is, however, another definition of critical mass - one from the area of social dynamics: "A sufficient number of adopters of an innovation in a social system so that the rate of adoption becomes self-sustaining and creates further growth". This concept is illustrated, albeit simplistically, by the following:




I'm no theoretical mathematician or economist, but I can see the value of this thinking when it comes to reinventing University Boulevard. I'm wondering if some of the traditional attitudes that may stand in the way of making something unique happen represent the 'blonde' in the film clip - attitudes such as non-cooperation, profiteering, and NIMBY.

This extends not only to those engaged in private enterprise, but also to those governmental entities with a significant operational and financial stake that are saddled with the perception - and/or reality - that they are obstructionist and/or combative.

Included as well is a large, privately held, not-for-profit institution that attempts to frame itself as a benevolent community asset, when the reality leans further toward an enterprise engaged in aggressive growth for the fulfillment of its mission, that is used to getting its way.
That these institutions are both in the business of education brings to bear even further the need for innovative solutions, before the wrong kind of critical mass becomes a reality.

The level of cooperation required, and the multiple of layers of stakeholders involved - Local government, PennDOT, multiple above and below-ground utilities, private property owners - is potentially daunting if substantial yet necessary changes to this multi-purpose corridor are to occur.

But think of the advantages to all if everyone will work not only for themselves, but also for the group.

Best wishes to all stakeholders as the process continues to unfold and evolve.

Friday, May 03, 2013

Bordering on the Bizarre - The Shopping Center Splits


There are 130 separate municipalities in Allegheny County, dividing up the county's 735 square miles in some unique, and in some cases historic, ways.
Like those boundary lines, some of these communities are anachronisms, struggling to maintain relevance and viability amid economic and cultural upheaval. Others are thriving beyond their ability to manage the amount of people, associated traffic, and service demands that are set upon them. Some of those demands spill over into other jurisdictions, requiring changes to the relationships between existing governments, or perhaps the creation of relationships where none previously existed.
This series is designed to illustrate and educate about some of the more interesting ways these boundary lines affect the lives and decisions of citizens, their leaders, and others who make our towns, counties, and state the place that it is - for better or for worse.
This time, I've found several examples of how shopping plazas, malls, and other similar areas challenge the assumptions we as citizens make about who has responsibility for public safety and other services.
Each illustration below provides a little insight, or links to it, into how a particular area became what it is today, and in some cases how the towns responsible for the area cooperated - or not - in the creation of these areas, and how their existence affects a community's quality of life.
There were more of these areas than I thought there would be, but it's not really surprising. In most cases, the involved towns are benefiting jointly from the revenue that their slice of particular retail pie is generating, which would kind of explain their existence in the first place.
There are also a few jurisdictional quirks unique to the Commonwealth that are near to and/or affect those who may frequent a shopping plaza. I've included some of these as well.
I focused on construction that occurred in the midst of a border line, instead of highways where development crept outward across a municipal, or even county boundary. There are plenty of examples of that (Cranberry, Peters Township, Hopewell) to go around.
Your insights are appreciated, as always. Have a great month ahead.
South Hills Village
The "Grand-daddy" of area shopping malls, South Hills Village has been around since 1965, straddling the border between Bethel Park and Upper St. Clair. That line is a straight one, save for the inexplicable little jog in the middle of the mall. Both communities maintain their own separate public safety dispatch centers.
An extra added jurisdictional bonus is the Blue Line light rail station and adjacent Park and Ride lot and garage. Law enforcement for these areas is the responsibility of the Port Authority's Police Department. Credit: Bing Maps / John Linko


Crafton Ingram
Crafton-Ingram Shopping Center
A lone testament to truth in advertising. The boundary dividing Crafton Borough and Ingram Borough runs right through the middle of the parking lot.  Credit: Bing Maps / John Linko

Wexford Plaza
Wexford Plaza
The shopping center's website describes it as "Wexford's main street for over 3 decades".
Considering that the center is split between two municipalities, and that Wexford is for all practical purposes little more than a mailing address, is it any wonder that there's an identity crisis going on here?
Nevertheless, it's interesting that the border of Pine and McCandless runs right through a little breezeway of sorts, as if the gap between buildings was made for it.
Also, the western boundary of North Park is adjacent to the complex. The Allegheny County Police are responsible for law enforcement there. Credit: Bing Maps / John Linko

McIntyre Square
The site of the former McIntyre Shelter for children, the property was sold by Allegheny County and developed in the early 1990's.
A key consideration for approval by the two townships involved was to assure that traffic could flow through the complex without additional negative impact on McKnight Road, AKA the "McKnightmare". This is probably why the access road through the complex connects McIntyre Road to Peebles Road. Credit: Bing Maps / John Linko

The Mess at Robinson
The Mess at "Robinson"
The massive commercial and industrial development starting at Settlers Ridge (bottom right) and extending to RIDC Park West (top left) is collectively referred to by many as "Robinson".
In reality, the complex spans 4 different municipalities, with public safety resources coordinated by 6 different dispatch centers.
This includes the limited access highway that bisects the complex - more about that in the next photo. Credit: Google Maps / John Linko

The Mess at Robinson 2
Exit 59 and Surrounding Area
Driving around in this area can give you a complex, especially if you need help. Knowing where you are can be a challenge, as the line between Robinson and North Fayette Townships basically divides the interchange, as well as the parking lot of Lowe's, just to the south.
If you happen to be on the Parkway or one of the on or off ramps (highlighted in pink), there's a bonus - law enforcement on limited access highways such as I-376 is the responsibility of the Pennsylvania State Police.  Credit: Google Maps / John Linko

Waterworks
The Waterworks - How Not to Do It
A lot of people think that when they're shopping here that they're in Fox Chapel or O'Hara Township - heck, even the company that built the place thought so.
Surprise - the mall, adjacent UPMC St. Margaret Hospital, and the Pittsburgh Water Plant across Freeport Road is actually a somewhat solitary outpost of the City of Pittsburgh, surrounded by the above communities, as well as Aspinwall. The State Police are responsible for nearby Route 28.
The associated traffic, crime and other impacts, without any say in planning or sharing in any of the tax revenue that the City enjoys, was something that had these neighboring towns bristling a bit when the complex was first opened.
Whether or not the situation has improved is unknown, but one thing appears certain - cooperation and coordination didn't appear to be a priority from the start.  Credit: Bing Maps / John Linko


The Waterfront
The Waterfront - Making the Best of It
In contrast, redeveloping the land that hosted the historic, mammoth Homestead Works could have been a significant challenge for the three towns that hosted the steel plant. But as Wikipedia notes, "The Waterfront was predominantly a private investment, although there was a tax increment financing of approximately $25 million approved by three separate municipalities, one county, and one school district, a notable accomplishment".
While the complex's sprawling size and lack of pedestrian walkways in many places makes getting around it a little tough, there appears to be a commitment by the towns who benefit from it's operation to keep it safe and attractive to residents across the region.
The complex employs private security that interfaces regularly with the three municipal police forces. Additionally, officers from those departments provide dedicated patrol of the entire complex during peak periods - without regard for jurisdictional boundaries.
Munhall still maintains its own dispatch center, but the level of cooperation between them and neighbors Homestead and West Homestead remains good. It's not perfect (what is?), but it's a step in the right direction.  Credit: Bing Maps / John Linko

Tuesday, July 17, 2012

The Fortune Cookie Files


A close-up of my wallet, AKA the file cabinet, before a recent cleaning.

As part of my recent commitment to clean some things up, I started with one of the more essential components to the existence of most men - the wallet.
As one of the attached photos clearly demonstrates, I have a lot of stuff in my wallet. I'm the kind of guy that likes to have a lot of resources available - aside from the usual required pieces of plastic such as ID and a credit/debit card, I have loyalty cards (GetGo, Sheetz, Bottom Dollar, etc.), library cards (Sewickley and two in Colorado), postage stamps, a personal memento from my wife, a card-sized copy of the Bill of Rights, and space for coupons and receipts to accumulate. By the end of the month, I've got quite the collection. 
Despite medical warnings to the contrary, I like a wallet I can keep a lot of things in. Until I was about 25 I carried one of those big trucker's wallets, chain and all.
One thing that I've collected over the years stems from an affinity for Asian cuisine, and the omnipresent fortune cookie that comes with every meal. The fortunes themselves have little to do with the actual food or restaurant - truth be told, the best Asian cooking I've ever had was made by my sister-in-law in Oklahoma. 
Truth also be told, the fortune cookie is an American invention, and by Japanese immigrants to boot. According to Wikipedia - 
The exact provenance of fortune cookies is unclear, though various immigrant groups in California claim to have popularized them in the early 20th century, basing their recipe on a traditional Japanese cracker. Fortune cookies have been summarized as being "introduced by the Japanese, popularized by the Chinese, but ultimately...consumed by Americans."
Some of the fortune cookies that have graced my plate or take-out bag serve as a reminder or an admonition that I find valuable. These usually sit behind my drivers license until I clean and re-organize my wallet; they then get taped to old business cards and get placed in one specific spot for future reference. 
One timely and important piece of advice, taped to a monitor at
Allegheny County 9-1-1. Haven't had any take-out from that end of town yet.
There is a fortune cookie app available on Facebook. I will not provide a link to it - I like people too much to do that. As much as I'm interested in the random relevance or kitschy clairvoyance of fortune cookies, I don't like them enough to subject myself to anything from a Facebook app. For those Facebook friends in love with Farmville and similar time sponges, forgive me.
Sounds good to me, but I'm afraid that the money I save by not
buying more stuff will go toward more Chinese food...
It's also important to understand that these aphorisms are just that - an original thought in a concise or memorable form. They can be fun to read, dwell upon, even genuinely reflect on if the spirit moves you - but they are still mostly just the product of mere mortals. For example, how much stock would you place in a fortune that said "fracking fluid is high in essential nutrients"?
Remembering that you can get your own custom fortunes fairly easily nowadays further muddies the gene pool of mysticism and intrigue that can sometimes occupy the mind of the fortune recipient possessing an overactive imagination.
For me, the clarity present in scripture can be a healthy antidote to this confusion, even if some religious writers assert  (and I'm learning elsewhere) that most of the Bible isn't meant to be consumed in bite-size pieces. There are real and virtual fortune cookies available for this purpose.
You can even get instructions online for how to make your own fortune cookies with verses from LDS teachings. Although it's unclear whether or not the finished product would be suitable for church-recommended food storage, they would most likely be ideal for your next Mitt Romney fundraiser. 
So check out some of the samples I've collected. I know that some people also enjoy the language lesson and/or the lucky numbers that are on the back, but that's not what I've focused on. Perhaps I missed winning the Powerball because of it. Oh well..
Just as quickly as that order of Vegetable Lo Mein is forgotten, so may a lot of the fodder posing as advice or predictions, pinched en masse into rudimentary dough and baked with a hint of vanilla. 
But who knows what significance something so seemingly insignificant can have on the life of a single individual, and therefore on other individuals that person interacts with? Who's to say what the importance of the word "Rosebud", for example,  has on the psyche of one person, and possibly the collective psyche of a nation? How about the word "change" or "hope", for that matter?
Can fortune cookies be a metaphor or delivery system for American freedom? 

Some insight into this year's presidential race.
Have a good week ahead.

Sunday, May 20, 2012

High Times on Poorhouse Run


Examining the future of a relic. Revisiting a not-so-distant area from my childhood in words and pictures, one that stands to weather changes that may affect us all.

As an infant, my parents brought me home to an apartment above a garage behind my grandfather’s house, on Pleasant Drive in Center Township, Beaver County.  Before my brother was born the following year, our family moved to a house in the Plan 12 section of Aliquippa

A good portion of my childhood was spent in the company of relatives who lived on Pleasant Drive - I remember lots of grassy areas and woods, illegal fireworks on July 4th, and my grandfather's large garden. Target practice with a BB gun from my uncle's patio. A neighbor was a long-haul trucker and radio hobbyist, who helped fuel a passion for things wireless that lasts to this day. 

Topographic map of Poorhouse Run.
Horsehead plant and former Poorhouse site are in upper left.
Credit: USGS GNIS / Google Maps 

Poorhouse Run.
Pleasant Drive hasn’t always been known by that name. Until around 1945,  it was known as Poorhouse Run Road. As the road moves north from Center into Potter Township, it follows the general path of Poorhouse Run, a small stream that moves into underground piping at the road’s intersection with Frankfort Road, also known as Pa. Route 18.

Beaver County Home and Hospital (1853-1959), Potter Twp.
Photo circa 1921. Credit: J.A. Cole / Poorhousestory.com
Beaver County Home and Hospital (1853-1959), Potter Twp.
Rear of building - Credit:   JoAnn Bishop
Poorhouse Run empties into the Ohio River just downstream from the former Beaver County Home and Hospital, AKA "The Poor House". Originally constructed in 1853, with additions in 1876 and 1940, the facility was replaced in 1959 by the Beaver County Geriatric Center in Brighton Township, known today as Friendship Ridge.



Beaver County Home and Hospital (1853-1959), Potter Twp.
Main entryway - Credit:  JoAnn Bishop
Horsehead Zinc Smelting Plant, seen from the west.
Former poor house buildings are at the lower left corner.
I-376 Vanport Bridge is in the background.
Credit:  Horsehead Corporation  


The Poor House buildings still stand today on land owned by Horsehead Corporation, which operates one of the country's largest zinc smelting facilities there. This facility begins a concentration of industrial sites along the south shore of the Ohio River, to the West Virginia border. 



These facilities include a Nova Chemicals plant, formerly known as the Kobuta plant, which manufactured butadeine, a component of synthetic rubber, during World War II. 


One of my mother's earlier childhood memories is the smell that came over the hill from that plant. The plant was recently sold, but is expected to continue operations.

Bruce Mansfield Power Plant, Shippingport,
with church in foreground.
Further downstream are the FirstEnergy Bruce Mansfield power plant and Beaver Valley Nuclear Power Station, built near the site of the country's first commercial reactor for power production, at Shippingport
Beaver Valley Power Station, seen from the north on the Shippingport Bridge.
 The small domed structures house the facility's two nuclear reactors.
                                  




                                      
These facilities may seem removed from the greater Sewickley area, but in reality are rather proximal. The Horsehead plant is just down the hill - and usually upwind - from the Beaver Valley Mall. The 10-mile emergency evacuation zone around the nuclear plant extends to just short of Leetsdale. Depending upon the type of hazard involved, this complex of industrial sites is truly just down the road, as the crow flies...


An ethane cracker facility.
Credit:   Borouge Illustration / Beaver County Times
This area has seen its fortunes wax and wane with changes in demand for the various products produced there, including energy. Those fortunes are now showing significant potential for improvement with the recent announcement that Shell has chosen the Horsehead site for the development of an ethane cracker plant


This facility, if constructed, will cost in the area of $ 1 Billion to build, and stands to infuse the area with thousands of jobs, and the associated residential and commercial development that accompanies such activity.


The potential positive impact on the local economy is being touted to the levels one would expect with such an announcement. Interest in real estate in the immediate area is expected to increase - speculative optimism may also fuel development and efforts at entrepreneurial activity as the process moves along. Municipalities and school districts may already be developing visions of new infrastructure and larger operations dancing in their heads.

Should the Shell project and all associated with it actually come to fruition, there stands to be significant change in both the landscape and nature of life and living in the small towns and open spaces that coexist with the industrial necessities of modern living.

Two such towns caught my eye while exploring this area. One is Hookstown, a small borough along Route 168, completely surrounded by Greene Township and home to  all things rural, in particular the annual fair.

Another is Georgetown, a seemingly isolated riverside community accessible by only two roads, both originating in Hookstown. The town has a robust history as a riverboat stop, but seems extremely quiet for a modern day small town. 
Hookstown.

Driving around, the town felt reminiscent of the mythical town of Spectre in Daniel Wallace's novel (and Tim Burton's film) Big Fish. This was despite both the lack of shoes flung over any overhanging utility lines, and the red pickup truck that followed me from 2 blocks away until I left town the way I came in. 

I'm wondering, as I'm sure many of the residents of these areas are, how the development, construction, staffing, and operation of a major new industrial facility will affect their quality of life. 

Along with these living examples of local history, I'm also concerned about the artifacts of the past that appear destined for the wrecking ball - especially the site of the former Poor House. 

Georgetown.
I recently spoke with Ali Alavi, Senior Vice President for Corporate Affairs at Horsehead Corporation, about the future of the Poor House site as it relates to making it available for those who wish to document the site's interior for historical purposes, similar to what was done at the former Dixmont State Hospital in Kilbuck Township, south of Sewickley.

Mr. Alavi stated that it was "too early in the process" to make a statement about what, if any access would be granted to historical societies or other groups prior to any planned demolition. He also stated that it was his impression that Beaver County and/or Potter Township had adequate photo documentation. 


Mr. Alavi added that the 1940 addition to the complex was used as corporate offices for a time, but have since been moved, and the entire facility fenced off, because the buildings are "unsafe" and in "severe disrepair". 

This past week I spoke with Mark Berton, Managing Editor at IN Community Magazines and author of the Arcadia Publishing book on Dixmont. He stated that he was unfamiliar with any effort to photograph the interior of the Beaver County site. 


Hopefully,  those involved in both historic preservation and the re-purposing of the Poor House site can find common ground on a way to properly document the building for perpetuity.  Parts of the structure are as old as Sewickley Borough itself. 

I have lived in an area of the western U.S. where the economic fortunes of an entire region have twice been shaken by the boom-and-bust volatility that is often the hallmark of large energy projects.

As much as the proposed ethane cracker facility brings the promise of improved economic conditions, the potential also exists for changes to the area that are not exclusively positive.

I encourage due diligence and a healthy skepticism on the part of our elected officials, and also encourage citizens to become active, involved, and elect leaders who espouse the above qualities in abundance. This includes a healthy respect for the past, and of the dangers of repeating previous mistakes. 

It's also incumbent upon us as citizens to recognize both the importance of places like the Poor House and whatever it is demolished to make way for, to remember not only our way of life (past and present), but the potential for disruption should we forget.

Thanks to the Beaver County Historical Research and Landmarks Foundation, and their Director, Brenda Applegate, for their assistance and referrals for locating information and photos. 

Have a good week ahead.

Wednesday, April 04, 2012

Fuzzy Fuel Marketing Math



I've been struggling with how to begin a post about fuel prices; it's kind of like writing about death and taxes. We all know that gasoline prices are high, and that a lot of it has to do with imported oil, production challenges, and speculation. I struggled with how to explore the issue from a more local perspective, where it makes sense to the consumer that has to deal with it every day.


When I lived in Colorado, I often passed by two competing convenience stores that were on opposite corners of the same busy intersection. While they sold the same brand name of gasoline, the price for regular would often differ as much as 12, and as high as 24, cents per gallon on any given day. No one would provide a straight answer as to why, and the local media bristled at the suggestion that they weren't doing enough to find out. 


Perhaps it's not really surprising that these price disparities exist at different stores, but what about a chain of outlets that are all owned by the same company?


In the photos below, I've documented prices at several different GetGo outlets - these are owned in part by Giant Eagle, whose parent is the Kroger Company in Cincinnati. They also own the King Soopers and City Market grocery chains in Colorado. On this particular day, a 10 cent price swing existed between the Moon, Leetsdale, and Ohio Township stores. 


University Boulevard, Moon Township - March 22, 6:47 PM


Ohio River Boulevard, Leetsdale - March 22, 7:13 PM
Ben Avon Heights Road, Ohio Township - March 23, 3:13 PM


I can also personally attest to a consistent, 4-to-6 cent price difference between the GetGo outlets in Wilkinsburg and Edgewood (Regent Square), and the store in Squirrel Hill, at Forward and Murray Avenues. These stores are all within 2 miles of each other - why should gas cost more on one side of the Squirrel Hill Tunnel than the other?


GetGo's website has links to convenient apps and pages for mobile devices, to show what the price of gas is for outlets that are close to your location, or where you live or work. This app will only show one store at a time, however - comparison requires a lot of back and forth. 


GetGo is a popular location for gas because of their Foodperks and Fuelperks promotions, which tie discounts on gas to grocery purchases, and vice versa. I've found, however, that I can often get better deals on groceries at other stores, and in the wake of the high cost of fuel I've been cognizant of better prices at other places, such as warehouse clubs, where the price difference exceeds the occasional Fuelperks discount. If you had a 10-cent Fuelperks discount on March 22, however, it would have gone a lot further in Ohio Township than it would have in Moon.


Of course, these practices and observations are dependent upon one's individual circumstances and preferences. For me, brand loyalty is often overrated.


Giant Eagle media relations staff did not return calls this week seeking comment about their gas pricing. A few weeks ago, I spoke with a representative of Roberts Communications, a PR firm under contract to Giant Eagle, who stated that the company would not discuss either their marketing practices or market areas for gasoline.


A sample screenshot from a 
gasbuddy.com mobile app - Credit: thedroidguy.com
As it seems to be happening in so many areas of our lives, the Internet is facilitating the ability of the consumer to make more informed choices. Fortunately, there appears to be an independent resource for this type of information in the form of Gasbuddy.com, which enables consumer members to report gas prices so that many can potentially benefit. 



This information is available for the Pittsburgh area at Pittsburghgasprices.com. Their mobile app will provide available price information for your geographic location. There are some drawbacks, though - no one is posting price information for the stations in Ambridge. Might just have to do that. 


A representative of the site was also willing to shed a little bit of light about the nature of gasoline pricing on a  more local basis. According to Gasbuddy's Gregg Laskoski, the following factors influence what we pay at the local pumps:


Taxes - There's a map online that shows the disparity between states. New York - whew. When driving cross country on I-70, I always know to fill up in Missouri. 


Sales Volume - Another factor, along with how much gasoline sales make up the actual profit a store makes from selling "convenience" items at "convenience" (read exorbitant) prices. 


Wholesaler - Gas stations buy their gas from a wholesale dealer - when the station takes delivery of a fresh load of gas, and how much they paid the wholesaler for it, will obviously affect the price. GetGo is owned in part by Guttmann Oil of Belle Vernon, Pa. - how does the use of a sole source wholesaler affect the price in different geographic areas? How should it?


Local Market Trends - Often as inscrutable as the wind, but sometimes predictable. In general, the closer you get to an airport, the higher the gas prices get. Is that in response to higher business costs, businessmen returning rental cars, or a perceived sense that those who need gas in this area can afford to pay more or will not care as much if they do? Then again, how does this explain that gas prices across the county line in Ambridge are comparable with airport-area stations, and nearly a dime more than just down the road in Leetsdale?


Applicable Law - Some states have laws that prevent retail outlets from selling items below cost to attract customers to buy other things from them - the so-called loss leader strategy. Pennsylvania is one such state - the Pa. Unfair Sales Act was pointed to by many retailers in response to the GetGo Fuelperks discounts, and warehouse clubs such as Sam's and Costco may be exempt because they restrict sales to their members only.


The Gasbuddy folks also keep a close watch on past trends and potential future developments that could affect gas prices across a region, or across the US and Canada. One such potential development is the threatened closure of a Philadelphia gasoline refinery that could negatively impact supplies, and therefore prices, across the northeast U.S., including the Pittsburgh region. 


It was reported today that there could be as many as 4 interested parties in purchasing this refinery, which could definitely help keep prices at their current unreasonable level, or keep their unreasonableness from multiplying more unreasonably than already anticipated.


Does it make sense to drive across the county for cheap gas? I don't think so. For my car,  a 10-cent per gallon savings is $1.50 - does that justify driving an extra 20 miles, or burning nearly a gallon of gas, to get that savings?


Most of us remain too involved in the day-to-day business of living to get too deep into the subtleties and complications that surround the oil business, or any other attempt to profit from the procurement and marketing of fossil fuels. All we can hope to do is make sure that we can find what we need at the most reasonable price we can, without going to unreasonable lengths. 


Perhaps it's not too much to ask of our "neighborhood" gas retailers to show some consistency in how they price their product, or at least be more up front and honest about what factors impact the prices they set. 


But before you set your sights on that clerk behind the counter, think twice - the answers, and those who can provide them, are somewhere else entirely.


Have a great month ahead.