Transportation Economic Issues in the Proposed Annexation of Wendover, Utah

Abstract

In 2002, the residents of Wendover, Utah voted in favor of annexation by the adjacent West Wendover, Nevada. While Wendover is blighted, West Wendover thrives in a gaming-based economy. The legislative process is lengthy because of the proposed realignment of the Nevada-Utah boundary. This paper examines the transportation-related implications of the proposed annexation. The capital value of Wendover’s transportation assets is about $40.6 million (U.S. $2003), although attention has been directed toward the Wendover Airport and an associated debt that had grown to $27 million by early 2006. Wendover’s annual tax revenue per km of road would increase from $22,800 to $43,300 following annexation. The additional funding would be useful in improving Wendover’s streets, 72% of which were either poor or unpaved in a June 2005 survey. There would be an immediate annual transportation cost increase of $725 per household in Wendover from higher licensing and registration fees, insurance premiums, and fuel taxes. City and county officials in Nevada were wrestling with being responsible for the airport’s debt, forcing officials in Utah to consider alternatives to annexation. One alternative would be to further develop the airport, and establish stronger linkages to nearby attractions.