To develop a methodology for estimating the economic value and economic impacts of artificial reefs and to apply that methodology to the Lorain County reef. Specifically to:
survey users of the Lorain County reef about utilization of the reef,
estimate the economic value of the artifiicial reef to users, and
estimate the economic impacts of the artificial reef.

The Ohio artificial reef project began in 1984 with initial construction of the first reef in Cuyahoga County. Since that time, reefs have been completed in Cuyahoga and Lorain Counties and are planned in Lake and Ashtabula Counties. The North Central Advisory Committee has generated reef materials and the financial resources for construction of the reefs. The purpose of the reef project was to create a demonstration project to evaluate the productivity and feasibility of reef construction in other areas of Lake Erie and the other Great Lakes. Ohio Sea Grant and one advisory committee have made a major investment in this demonstration project. Evaluation of its effects on recreational activity and the expected effects of similar reef structures in other coastal areas are priority needs for coastal development policy. In this project, we propose to evaluate the Lorain County reef.

Artificial reef users will be contacted on the reef while using the reef area for fishing, diving, etc., during 1992. Creel type data will be obtained on site for anglers. Names and addresses of users will be obtained for the purpose of mailing a questionnaire at the end of the season. Information about visits to the reef, total visits to Lake Erie, recreational expenditures made at the reef and other Lake Erie sites during 1992, and personal evaluation of the reefs as a recreational attraction will be obtained. Recreation or travel cost demand models will be used to develop the methodology for estimating the economic value of the artificial reef to reef users. Input-output models will be used as the basis for an economic impact methodology. Current models from Sea Grant projects will be the starting point.

The economic value of the Lorain County artificial reef was estimated. The estimated annual value of $276,000 is nearly three times the original construction cost or $100,000. If the reef has an expected life of 20 years with a discount rate of 5 percent, the net present value of the reef if about $3.4 million.