CHAT Report

THE DODGE CITY

CHAT REPORT

A Housing Assessment and Strategy for

Dodge City, Kansas

` by the

UtiliCorp United/WestPlains Energy

Community Housing Assessment Team

Team Members

Martin H. Shukert, AICP

Scott McGinley

May 17,2000

Introduction _

Population Characteristics and Housing Demand 2

Opinion Survey 13

Needs, and Strategies 18

Housing Resources 19

Strategic Housing Issues 22

Affordability Issues 26

Housing Strategies 28

Dodge City Housing Partnership 30

Affordable Homeownership through the Private Sector 34

Rental Housing Priorities 37

Manufactured Housing 38

Housing Conservation 3`3

City/Developer Communication 41

Community Infrastructure 42

City Image 43

Strategic Program for the Next Two Years 44

he Dodge City Community Housing Assessment Team Report assesses housing conditions in the city and makes future strategy recommendations to address vital housing issues. The purpose of the CHAT process is to assess housing needs and strategies that will enable the community to increase overall production of housing and help to define future community development directions.

The CHAT report consists of several parts, including:

• An assessment of housing demands, affordability, and development issues in each town. This assessment is guided by demographic and economic analysis and the proceedings of a program of six focus groups, conducted in Dodge City on May 15 through 17, 2000.

• A review of overall housing needs in the community and its county

A A presentation of strategies and recommendations that respond to needs identified during the planning process.

This process was initiated by the Dodge City/Ford County Development Corporation, the Dodge City Chamber of Commerce, the City of Dodge City, and National Beef Company.

In developing the report, we are grateful to Joann Knight and her staff at the Development Corporation, Mike Gurnee, City Planning Director, and Greg Starks. We are also grateful to those who contributed their time and insights to this study.

The Dodge City CHAT Report: Introduction Page

Population AND HOUSING DEMAND -_

Dodge City has experienced a history of steady population growth. The city's population has substantially increased during the past several decades, growing from 12, 530 in 1960 and 15,964 in 1970 to 18,116 in 1980. Despite the reverses experienced by many Midwestern and plains cities during the 1980s, Dodge City's population continued to grow, reaching 21,129 in 1990, or an increase of 16.6% during that decade.

• Dodge City's population growth has continued during the 1990s. The city has seen the addition of about 900 new units between 1990 and 1999. This new development activity included:

- 333 conventional single-family houses. - 111 "residential design" manufactured units, which are considered the same as conventional single-family units under state law. - 82 units in duplex structures -173 were mull-family units -135 mobile homes on individual lots, which represent additions to the housing stock. - 190 other mobile home permits, including new and replacement units in mobile home parks. We assume that 1 /3 of these represent new units.

30,000

25 ,000 -

20,,000 -

15, 000-

10,000-

5,000-

1960 1970 1980 1990 2000(est.) 2010 (est.)

The Dodge City CHAT Report Page 3

• Dodge City's population will grow to an estimated 27,937 by the year 2010. The estimated 2000 population of the

city is 24,737, an increase of 17.1% since 1990. 'fable 1 displays alternative population scenarios for Dodge City. Two factors account for population change -- natural population change, based on the balance of births and deaths in the community; and migra- Based on the age distribution of the community's 1990 population, natural population change (based on the balance of births

and deaths in the city) would produce an estimated population of

22,437 by 2000. The alternatives presented in Table One consider different levels of migration. By comparing the predictions of each scenario to current projections and development experience since

1990, we can describe trends at work in the city since 1990. These trends can then be used to project future housing demand for the

next ten years.

Two recent population. estimates are used for comparison. An estimate completed by the State of Kansas State Demographer estimates a population of 22,456 for Dodge City in 1999, corresponding to about 1% in-migration. A separate estimate projected by Clantas, Inc., a leading demographic analyst, estimates a 1999 population of 22,534, or an in-migration rate of 2%. We believe that both of these estimates undercount the city's population, particular

'Tale 1

DODGE CITY POPULATION SCENARIOS, 1990-2000

Population Alternative 1990 2000 2010

Estimate Forecast

- 4% migration 21,129 21,548 21,666

- 2% migration 21,129 21,990 22,564

No net migration 21,129 22,437 23,489

+2°/ migration 21,129 22,888 24,443

+4% migration 21,129 23,343 25,426

+6% migration 21,129 23,803 26,438

+8% migration 21,129 24,268 27,479

+10% migration 21,129 24,737 28,552

1999 State Demographer 22,456

1999 Claritas Estimate 22,534

The Dodge City CHAT Report Page 4

Tattle 2

I HOUSING CONSTRUCTION IN DODGE CITY, 1991-1999

Year Single-Family Residential Design Duplex

Manufactured

Multi-Family Total New Units

1991 36 12 6 16 60

1992 30 10 12 0 52

1993 65 7 6 -4 83

1994 31 6 10 38 85

1995 50 2 14 10 76

1996 40 12 14 96 162

1997 21 21 8 6 56

1998 34 27 6 3 70

1999 26 14 4 0 44

Total 333 ill 82 173 699

160

740

120

100

1991 1992 1993 1994 1995 1996 1997 1998 1999

Multi-Family

Duplex

E Single-Family

The Dodge City CHAT Report

Page 5

Population C Change and Housing

ly in view of substantial employment increases at National Beef during the 1990s. Based on these estimates and construction activity since 1990, we project. in-migration of 1(?% diming the 1990s, indicating a year 2000 population of 2,737. Continuation of these trends forecasts a population of 27,837 in 2010. A major employment event, such as an increase to the workforce of National Beef, could generate substantial growth in excess of this forecast.

• .based on probable population change, Dodge City will experience a demand from 2000 to 2010 for 1,504 housing units. A model that is consistent with the number of units added to the city's housing supply between 1990 and 1999 suggests that the nominal vacancy rate has dropped from 7.86% in 1990 to a very low 3.36% in 1999.

Table 3 presents housing demands for Dodge City between 1990 and 2010. From 1990 to 1999, the model predicts a need for 926 units, based on a rapid reduction of the city's 1990 vacancy rate from 7.86 to 3.36%.

Table 3

I SOUSING DEMAND FOR DODGE CITY, 1990-2010

1990-1999 2000-2005 2006-2010 Total,

2000-2010

Population at End of Period 24,368 26,337 27,937

Household Population at End of 23,537 25,440 26,985

Period

Average Persons per Household 2.671 2.67 2.67

Household Demand at End of Period 8,812 9,528 10,107

Projected Vacancy Rate 3.36% 3.36% 3.36%

Unit Needs at End of Period 9,260 9,979 10,458

(Household Demand + Vacancy)

Replacement Need 72 90 75 165

Cumulative Need doting Period 926 830 674 1,504

Number of Units Constructed During 900 0 0 0

Period

Net Need 0 830 674 1,504

Average Annual Construction 93 138 135 137

The Dodge City CHAT Report Page 6

':, 4 J i .. `• ,

These demand projections are haled on the following assumptions:

- The city's vacancy rate will remain constant between 2()(>0 and 2010 at 3.36,. A slow increase would be desirable, providing more housing choice.

- The average sire of a household will remain constant during the next ten years.

- The city should replace at least 15 units annually during the planning period. These units should leave the housing stock because of demolition or redevelopment to other uses.

Based on these assumptions, Dodge City should build about 137 new units of housing annually during the next ten years.

INCOME AND AFFORDABILITY ISSUES

• Median household income in Dodge City has increased substantially since 1980. Median household income increased from $16,705 in 1979 to $24,918 in 1989, a growth of 49.2%. The city's estimated median income is $36,131 in 1999 and is projected at $41,883 in 2004.

• Dodge City's 1990 housing supply was heavily weighted toward middle cost units. In 1990, the median value of an owner-occupied home in Dodge City was $50,30() while median contract rent was $268. Almost 40% of all owner-occupied units were valued between $25,000 and $49,999. While rents were more evenly distributed, most rental units were priced between $200 and $500 and between $200 and $350. Figures 3 and 4 display this value distribution for the city's 1990 housing stock.

Table 3 presents an Affordability Analysis, relating household income ranges with housing cost categories. A positive balance indicates a surplus of housing within the affordability range of each income group, while a negative balance indicates a shortage. The analysis indicates a relative shortage of both very low and higher cost units in Dodge City in 1990. As a result, higher earners occupy housing that, if available, could be affordable to more moderate income households. New construction since 1990 has the following characteristics:

- Mast single-family development has been focused on the higher end market, with many valued above $100,000. The city displayed a deficit of about 675 units in this range in 1990. As a result, development during the 1990s has nearly accommodated the practical

The Dodge City CHAT Report Page 7

1,200

1,000

sao

600

400

200

°o ° ° c

'^ n o m v;

N N N C H

n c

y, ?

1,200

1,000

800

600

400'

200

^ N N ° ~' N of

G p p p ~ s9

r N ~ in

m a.

% YVI B4 0 0

The Dodge City CHAT Report

Page 8

Table 3

1 IOUSING AFFOR19ABILITY FOR DODGE, CITY, 1990

Income % of % of # House Affordable # of Affordable # of Total

Balance

Range City HH holds in Range for Owner Range for Renter Aff

Median Each Range Owner Units Units Renter Units Units Units

$0-10,000 0-40 16.56 1,260 $0-15,000 87 $0-100 66 153 -1,107

$101-14,999 41-61 10.36 788 $15 ?5,000 367 100-200 349 716 -72

$15-24,999 62-101 23.52 1,790 $25-50,000 1,858 200-350 1,136 2,994 1,204

$25-34,999 102-141 16.38 1,216 $50-75,000 1,430 350-500 1,060 2,490 1,244

$35--19,999 142-202 18.62 1,417 $75-100,000 576 500-650 249 825 -592

S50-75,000 203-303 10.51 800 $100-150,000 245 650-750 56 301 -499

$75,000+ 303+ 4.05 308 $150,000+ 91 750+ 39 130 -178

Source: U.S. Bureau of the Census, 1990 Census.

RDG Crose Gardner Shukert, 2000.

backlog of move-up potential in this price sector. The satisfaction of tlvs market may be responsible for changes in single-family development during the last three years. During that period, average annual construction of conventional single-family houses has dropped while the development of residential design manufactured units has increased.

- Mufti-family development since 1990 has included substantial development for the senior markets and some market-rate development. The largest "affordable" development is the 96 unit Sundance Apartments, developed in 1996. Since then, only nine

mufti-family units have been developed.

• In 1990, 14% of Dodge City's owner occupant households (552) and 32% of its renter households (951) paid over 30% of their income for housing. Extended to 2000, this suggests that 1,809 of Dodge City's households are paying over 30% of their income for housing.

• Average sale prices have increased relatively slowly between 1990 and 1999. Median sales value of a house in lodge City was $52,250 in 1990, $54,000 in 1995, and $66,500 in 2000. The mean sales price for the city has risen at a somewhat faster rate, reflecting an increase in values at the top end of the market. Mean

The Dodge City CHAT Report Page 9

value was $54,972 in 1990, $63,716 in 1995, and $72,08() in 1999.

OVERALL HOUSING DEVELOPMLN7' PROGRAM

Table 4 presents the current estimated income distribution for housing, paired with affordable monthly housing costs for each income range. These costs are matched with housing development strategies that can be used to build housing in each category- For

Table 4

2000 INCOME ANE, PRICE MATRIX, DODGE CITY

Income Group Number of % of Affordable Price Ranges Appropriate Housing Types

Households Households Monthly for Owner- and Strategies

2000 Estimate Housing Costs Occupied

with utilities Housing

Under $15,000 1,521 17.0 0-375 Less than • Public housing

$27,500 • Section 8 certificates and

vouchers

• Section 42 tax credit rental

development

• Existing housing/rehabilitation

$15,000-24,999 1,351 1.5.1 375-625 $27,500-52,500 • Section 42 tax credit recital

development

• Mobile home/manufactured

housing

• Existing housing/rehabilitation

$25,000-34,999 1,450 16.2 625-875 $50,000-80,000 • Existing housing/rehabilitation

• Market rate rental development

• Affordable single-family

development

$35,000-49,999 1,494 16.7 875-1,250 $80,000- • Market rate rental development

110,000 • A$ordable single-family

development

• Subdivision development with

infrastructure finance

$50,000-74,999 1,888 21.1 1,250-1,875 $110,000- • Market-based single family

170,000 development.

• Subdivision development with

infrastructure finance

$75,000 and Over 1,244 13.9 Above $1,875 Over $170,000

• Market-based single fattiily

development.

• Subdivision development

Total 8,949 100.00

The Dodge City CHAT Report Page 10

Table 5

TEN YEAR HOUSING DEVEL0PMENT AND PRICING PROGRAM, 200()-2010

2000-2005 2006-2010 Total

Total Units Needed 830 674 1,504

Total Owner Occupied Units 540 438 978

Affordable Units, Under $180,000 129 105 234

Affordable Units, $80,000-110,000 133 108 241

Moderate Market Rate Units, 168 136 30-1

$110,000 $170,000

High Market Rate Units, 111 90 201

$170,000 and Over

Total Rental Uruts 290 236 526

Tax Credit or Assisted Units, Rents 102 83 185

less than $400

Tax Credit or Affordable Rental Units, 91 74 165

Rents between $400-$500

Market Rate Units, Rents between 97 79 176

$500-750

example, programs that are most appropriately suited to fiinifes earning between $25,000 and 35,000 will produce housing with monthly costs between $625 and $875, including utilities, corresponding to homes priced between $50,000 and $80,000. Strategies which can deliver housing in these ranges include rehabilitation of existing housing, manufactured home development, and affordable single-family development. These strategies are developed in detail in the Housing Strategy section of this plan.

Based on the city's income distribution, Table 5 presents a Ten Year Development and Pricing Program for Dodge City. The program provides production targets for various types of rental and owner-occupied units. The Development Program is based on the following assumptions:

• New development in Dodge City will be about 65% owner occupied and 35% renter-occupied, resembling the current makeup of the housing

stock.

The Dodge City CHAT Report Page 1 t

• Owner-occupied units will be distributed roughly in proportion to the income distribution of households for whore owner occupancy is an appropriate strategy.

• lower-income households will generally be accommodated in rental development.

The annual average production of 137 units indicated by this analysis is about 50°% higher than the average annual increase of about 93 units experienced during the 1990s. Major projected employment increases at National Beef could greatly increase demand. A projected increase of about 1,60() jobs at National Beef could generate an additional short-term local demand for about 250 units in excess of this development program.

The analysis indicates a demand between 2000 and 2005 for about 262 owner-occupied units with prices below $110,000 and 193 rental units with monthly housing costs below $500, or a total of 455 "affordable" housing units.. Therefore, a housing program for Dodge City should establish an objective of developing about 75 affordable units per year during the next five years. 'The analysis also indicates a significant demand for middle-level units, priced between $110,000 and $170,000.

The Dodge City CHAT Report Page 12

'THE DODGE CITY CHAT REPORT

OPINION SURVEY

TIP 1)ndov ritv t^F-TAT Re"nrt• ()nininn Sumev AnaP 1 i

This section summarizes results of the Housing Perception Survey, completed by a sample of 29 participants in the CHAT process.

EFFECTOF LOCAL ECONOMY

Most respondents were positive about the strength of the area's economy. About 83% percent reported positive economic trends, with 45% responding that the economy was "very positive."

DEMAND FOR SINGLE-FAMILY HOMES

About 93% of the overall sample considered the demand for singlefamily houses to exceed supply. Most respondents (over 70%) considered the undersupply of single-family housing to be most prevalent in price ranges below $80,000. A majority of respondents (54'%) also observed an undersupply in the $80,000 to $100,000 category.

DEMAND FOR RENTAL HOUSING

About 83% of the overall sample considered the demand for rental housing to exceed supply, with 31 % saying that demand greatly exceeded supply. About 90°/> of survey participants report an undersupply of housing with rents below $400, while 61% report an undersupply between $400 and $500.

SINGLE-FAMILY PRICE TRENDS

All respondents consider house prices to be increasing. About 34% of the sample reports that prices are "substantially increasing."

NEEDS OF SPECIFIC GROUPS

Respondents most frequently view the current housing market as successfully meeting the needs of empty nesters and the elderly, although a nunority of participants though that even these categories were accommodated successfully. On the other hand, those groups who are least effectively accommodated by the current market include families with children.

About 45% believe that the market is adequately meeting the needs of seniors. The remaining respondents (55%) believe that the market is not adequate to meet senior housing needs.

TARGET MARKETS AND NEW HOUSING PRODUCTS

Survey respondents most frequently consider the following markets

T7.i 7)njnv ritv rF-1AT R.WIf/• rwninri ~i~n~r ~nnn iQ

20 30 40 50 GO 70 80

of Respondents

to be primary targets for new, owner-occupied housing:

• Young families (76%)

• Middle income (55%)

• Low and moderate income households (45%)

• First time home buyers (45%)

The following groups were most frequently considered to be target

markets for new rental housing:

• Low and moderate income households (73%)

• Singles (67%)

• Young families (52%)

• Middle income (36%)

• Seniors (33%)

Respondents considered the highest demand for housing types to

be:

• AW rdable, small single-family houses (73%)

• Middle-sized, three-bedroom single-family houses (58%)

• Low and moderate-income apartments (45%)

• Townhouses and duplexes (21 %n)

LOT SUPPLY

About 20% of respondents rated the supply of buildable improved lots to be severely in undersupply, while another 17% perceived a

0 10 20 30 40 50 60 70 80 90 100

of Respondents

moderate undersupply.

LOWER COST HOUSING METHODS

Respondents ranked the acceptability of non-conventional develop-

ment types to lower housing costs in the following order:

• Manufactured housing (39%)

• Duplexes or townhouses (39%)

• HIigh density cluster housing (21%)

APPROPRIATE PUBLIC POLICIES

The survey asked respondents to rate potential public actions on a

"5" to "1" scale, with "5" representing those actions most relevant

to housing issues in the Dodge City area. Ratings of these potential

actions follow:

• Rehabilitation loans (3.89)

• Mortgage assistance (3.44)

• Grants and low-interest loans (3.30)

• Development of infrastructure (3.19)

• Construction financing (3.19)

• Downpayment assistance (3.14)

• Section 8 assisted housing (2.70)

• band acquisition for development (2.48)

^n.o n"aao r:h, rua'r R,~" . n."H;" c,."~" nl.,o m

Young; families I

Middle income

Low/mod income,

First time buyers 1

Move up market 1

Mature families.

Upper income

Large families

Seniors 1

Singles

Empty nesters

Others

0 10 20 30 40 50 60 70 80 90I

Number of Responses

Singles

Young families

Middle income.

Seniors

Large families

Empty nesters

Mature families'

Upper income.

Other

0 10 20 30 40 50 60 71

Number of Respondents

Thn Tlndno !'a,. ('FIAT

THE DODGE CITY CHAT REPORT

HOUSING NEEDS

AND STRATEGIES

The Dodge City CHAT Report: Housing Needs and Strategies Page 18

Dodge City brings significant resources toward housing growth and development. These include:

COMMITTED FINANCIAL COMMUNITY

Dodge City's financial institutions are sophisticated and have substantial experience in and commitment to housing issues in the community. The lending community includes both locally owned companies and larger organizations with broad experiences in hosting financing. Lenders were at the forefront of an effort during the 1990s to develop affordable rental housing under the auspices of Mennonite Housing. These financial institutions provide an important boost to comprehensive housing strategies.

A STRONG EMPLOYMENT BASE

Dodge City displays a relatively balanced and growing employment base, buttressed by Excel with about 2,600 employees and National Beef with about 1,600 employees. National Beef is considering a massive expansion which could add up to 1,600 new jobs during the next five years. Other major industrial employers include CrustBuster/Speed King with 180 employees, High Plains Publishers (85 employees) WestPlains Energy (78), and Curtis Machine (75). Dodge City is a major regional service center, making public employment and the Western Plains Medical Center substantial job centers. Dodge City also has substantial retailing and tourist oriented employment. Dodge City maintains an aggressive economic development program and a strong partnership between city government and the Dodge City Development Corporation.

Importantly, major employers are well aware of the nexus between housing and successfid worker recruitment. This provides an opportimity for successful involvement of large employers in encouraging new development.

A SUPPLY OF SOUND, AFFORDABLE HOUSING

Despite the fact that the condition of existing housing is a persistent community issue, Dodge City maintains a variety of good quality housing settings. In general, these houses are relatively affordably priced, with a median sales transaction below $70,000. Houses range from bungalows and small older houses to attractive city structures along such community streets as Central and Sixth Avenues; attractive postwar houses in neighborhoods north of Comanche Street; and a variety of detached and attached contemporary housing types.

The Dodge City CHAT Report: Housing Needs and Strategies Page 19

CONTRACTING COMMUNITY

Dodge City has a well organized 1-lomebuilders Association, with members who have been involved in the development of affordable housing. Specific efforts include:

• Indian Hills I and IL This single-family development includes houses ranging from 900 to 1,100 square feet with two car garages and full basements. Prices generally range from $72,000 to the high $80,000's. This subdivision was developed through the use of special assistance, which add $108 to the monthly costs of principal, interest, taxes, and insurance.

• Iseman Mobile Home Park. This new 200-lot facility is being developed adjacent to Dodge City Municipal Airport about a mile east of the corporate limits. It is planned to be developed to high standards and will require that all units be no more than five years old.

• Sundance Apartments. This 96 unit apartment development, developed with the assistance of Section 42 low-income housing tax credits, was developed locally and is the city's largest recent apartment complex. Its rents range from about $450 to $520 monthly.

• Trinity Center. This project, still in the subscription phase, will provide independent living units for seniors, including attached cottage development.

These initiatives demonstrate that the contracting community has mobilized around the production of affordable housing.

IDENTIFICATION OF HOUSING AS A COMMUNITY PRIORITY

Major participants in the housing process, including the Dodge City Development Corporation, city government, major employers, and the private sector all identify housing as a vital community priority. While the structure to deliver housing is not fully realized, the recognition of the issue is a significant first step.

MAJOR COMMUNITY INVESTMENTS

Dodge City, through its Why Not Dodge? local option sales tax program and other projects, is making substantial community investments that will greatly improve the city's quality of life. These major investments include:

The Dodge City CHAT Report: Housing Needs and Strategies Page 20

• A new high school, under construction in the northwest part of the city. Following completion of the high school, the existing historic high school will be converted to a 5th and 6th grade center.

• A new sports complex, under construction northwest of 6th and Ross Boulevard.

• The restoration of the railroad depot, funded largely through TEA-21 Enhancement Funds. The depot will house the community theater, Amtrak, retail uses, and other community activities.

• The expansion and enhancement of Boot Hill.

• The construction of a $23 million Community Events Center, programmed to include a 7,000 to 10,000 seat arena. Studies on location, cost, and facility programming are continuing.

EDUCATIONAL AND TRAINING RESOURCES

Dodge City has an important educational resource, the Dodge City Community College with extensive career-training capabilities. These programs can be valuable assets by increasing the city's labor force engaged in building trades. However, the school is not currently offering courses on building trades.

The Dodge City CHAT Report: Housing Needs and Strategies Page 21

A community housing and development program must provide a strategic focus, as no effort can hope to operate on every front. The following issues and common themes emerge from focus group proceedings, field work, and additional analysis.

• Affordable Housing and Economic Growth

The Dodge City area experienced significant overall economic and job development during the 1990s with continued growth at its two major industries, National Beef and Excel. This job growth is generally related to production-level industrial jobs, providing a basic wage level of about $10 per hour.

During the 1990s, the staple of the city's single-family market was relatively high-cost houses, responding both to new demand and a backlog for move-up units. However, the saturation of the higher cost market and the ascendancy and housing needs of wage-earners in area industries is changing the nature of this market. This has produced a slowing since 1996 in the number of high-end houses constructed in Dodge City. Most participants in the perception survey agree by indicating an undersupply of housing with prices below $80,000.

The possibility of substantial job growth at National Beef again demonstrates the critical connection between economic growth and housing development. Ultimately, the ability of Dodge City to accommodate its low and moderate-income residents will determine its ability to absorb future economic growth. Workers in the Dodge City market have different housing needs. Some are highly transient and are unlikely to make a long-term commitment to residency in the city. Others require a foothold that will lead them to become integral citizens of the community. In any case, Dodge City must address its supply of available, affordable housing, both by new production and, to some degree, by making existing quality housing stock available to new residents.

• National Beef Expansion

National Beefs possible expansion of 1,600 jobs during the next five years can produce tremendous stresses on an already tight housing market. Approximately 800 of these positions are likely to represent people or households entirely new to the region. Assuming that workers will be housed throughout the region, this expansion

The Dodge City CHAT Report: Housing Needs and Strategies Page 22

may provide a short-term demand for between 250 and 400 units in Dodge City, depending on accommodations. Based on current experience, a number of these workers will not seek permanent res

idence in the city. Yet, it is important to provide decent housing to new workers in the area. Traditional three-story walk-up apartments may not be the appropriate way to house this new arrival population, given lifestyle and cultural patterns. National Beef is committed to providing the city with at least two years notice of this expansion to allow for proper planning. The city should take advantage of this window to meet this extraordinary requirement and opportunity.

• Development Capacity and Organization

Dodge City lacks a structure to meet some housing needs or to partner effectively with the private sector. The community is included in the service area of Great Plains Development Corporation, which includes a Community Housing Development Organization (CHDO). However, Great Plains covers a 28 county service area, concentrates on economic development activities, and avowedly is reluctant to enter into a housing partnership with the state and developer after a negative experience on the composition of its CHDO board that threatened to delay a significant project. Dodge City has a Public Housing Authority with significant development capabilities under Kansas state law. However, the PHA generally concentrates on administering its existing family and senior properties. Creating a capacity to use available resources effectively and efficiently, based on identifying specific project and program focuses, is a fundamental community need.

• Infrastructure Development Costs

Infrastructure cost is a significant disincentive to the provision and marketing of affordable owner-occupied housing. After extensive defaults on special assessments during the 1970s, the city required all development to be privately financed. Recently, the high-end Summerlon and moderately-priced Indian Hills subdivisions have again used the special assessment device, which reduces unacceptable front-end risks to developers of subdivisions.

However, in moderate cost subdivisions like Indian Hills, even the special assessment device creates substantial obstacles to sales. At Indian Hills, the assessable cost of public improvements is $10,000 per lot, adding $108 to monthly housing costs. This added cost sometimes seems "hidden" to buyers and in many cases, keeps a family from being able to buy the home.

The Dodge City CHAT Report: Housing Needs arid Strategies Page 23

• Community Infrastructure Issues

The cost of special assessments and special benefit infrastructure is not the only obstacle to development in Dodge City. Additional wastewater system costs, including sewer extensions and lift stations, are becoming necessary to open new areas to development, especially in the popular north part of the city. In addition, the city requires on-site retention of stormwater, both adding cost to residential development and taking some areas out of revenue production. Both of these community systems are critical and Dodge City deserves praise in particular for addressing stormwater management. However, these issues may be more effectively addressed and financed on a community-wide scale, requiring new development to contribute for its specific share of the impact or benefit gained from such improvements.

• The Approval Process: Relationships between the Public and Private Sectors

Both the private construction community and city officials report a sometimes bumpy relationship between these two critical partners in the development process. City government approvals are managed by departments with equal status and decision-making powers, leading to delays and potential contradictions that could be addressed by making one agency the "quarterback" of the land development process. Poor communications, differing expectations about submittals, and other issues are contributing to difficulties in this relationship.

• Existing Housing Quality

Housing preservation is a significant priority in Dodge City. While much of the city's housing supply is in good condition, significant areas of housing deterioration exist. Part of this is the result of an exceedingly tight rental market, which removes the economic incentive for certain landlords to improve property to remain competitive. Helping to create this tight market is the lack of new rental production -- no significant multi-family development has taken place since 1996.

In addition, Dodge City lacks a minimum housing standards ordinance. An attempt to establish such standards three years ago appeared to have significant community support, but was defeated at the City Commission level. It was generally opposed by investor owners. Much of Dodge City's housing stock should be conserved and re

The Dodge City CHAT Reflort: Housing Needs and Strategies Page 24

habilitated for a new generation of occupants. However, scarce resources should be focused on preserving those units most appropriate for rehabilitation, while redeveloping those which should ultimately be replaced. In addition, a rehabilitation strategy should address neighborhood conservation, addressing related environmental issues such as maintenance and upkeep, streets, sidewalks, lighting, and public spaces.

Qualification of Purchasers

Characteristics of Dodge City's labor force have tended to make qualification of moderate-income buyers difficult. T'hese include relatively moderate incomes, high consumer debt, and a relatively unsophisticated knowledge of the mechanics and requirements of home purchases. Lenders report pushing debt to income ratios to the limit in some cases, resulting in highly leveraged deals. In other cases, an item like monthly special assessment charges make the difference between a family being able to qualify for a home.

Contractor Scarcities and Rehabilitation Programs

While Dodge City has an active core of quality contractors, scarcities nevertheless exist in a number of areas. Some observers report a lack of contractors or skilled trades involved in home repair and rehabilitation. For example, the city's previous administration of a CDBG-funded rehabilitation grant was severely slowed by a lack of rehabilitation contractors.

City Image

While not directly related to housing production, community image and quality has an impact on development and investment activity. Some issues that affect the image of Dodge City include:

- the relatively poor appearance of city entrances and the Wyatt Earp Boulevard corridor.

- the condition of some city neighborhoods, particularly in the eastern segment of the city.

The Dodge City CHAT Report: Housing Needs and Strategies Page 25

An important housing issue in Dodge City is the development of housing which is affordable to families.

This analysis reviews the issue of "affordability" by considering price ranges that are affordable to different types of earners.

In order to determine the nature of the problern, it is necessary to define "affordability." Generally, an affordable housing unit is one which allows a household to pay 30% of less of its gross income for housing.

This factor is variable, depending on the fixed obligations of a household. For example, seniors without children to support often are willing to pay a larger percentage of their income for housing. On the other hand, a low-income household with children may need to spend a smaller amount. However, the 30% factor is generally accepted as a measure of afordability.

Table 2 examines what affordability means for four possible household scenarios in the Dodge City market. These scenarios are based on typical situations and average wages within the region. They include:

• A single earner household, working at an entry level hourly wage of $$.

• A two-earner household, accounting for 1.5 FTE's working at an average wage of $9.50. This is consistent with typical local basic wages.

• A two-earner household, accounting for 1.5 FTE's, working at a "mature" wage of $12.

• A two-earner household, accounting for 2.0 FTE's, working at a "mature" wage of $12.

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HOUSING AFFORDABILITY SCENARIOS

Scenario

Gross Annual Income

Affordability Factor

Affordable Monthly Payment

Utilities Cost

Available for PTTI

Taxes and Insurance 25% of Payment)

Available for PI

Affordable Housing Price

KDHC Housing Finance Agency First. Time Homebuyer (7.0%, 5% DP, 30-year fixed)

FHA or Conventional (8.25%, 5% DP, 30-year fixed)

General Income Range

• Single Parent

• Entry level wage

$16,640

.30

416

336

252

37,900

Rental Situation

0-20,000

The Dodge City CHAT Report: Housing Needs and Strategies

• Dual earner

• Average wage

• 1.5 FTE

$29,640

741

120

621

155

466

73,500

66,005

20,000-35,000

• Dual earner

• Mature wage

• 1.5 FTE

$37,440

.30

936

130

806

202

604

95,200

86,040

35,000-50,000

• Dual earner

• Mature wage

• 2.0 FTE

$49,920

.30

1,248

100

1,148

287

861

118,150

50,000-75,000

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A housing program for Dodge City should include the following strategic directions:

1. Establish a cooperative, community-wide infrastructure for the development of affordable housing.

2. Implement a program which effectively takes advantage of the ability of local builders to produce quality moderately priced owner-occupied housing, affordable to people at wage levels generated in major area industries. These typically correspond to the general range of $60,000 to $100,000. This program should focus on:

- Increasing the ability of buyers to qualify for these houses. - Addressing the added cost to moderate income buyers created by special assessments in new subdivisions. - Conserves existing housing stock for a new generation of homebuyers.

3. Develop a project configuration which can appropriately respond to the possibility of Large-scale expansion of major industrial employers, most notably National Beef.

4. Increase the quantity and quality rental housing stock available to Dodge City's residents, with a particular priority on affordable rental housing. This direction could pursue a number of directions, including:

• Direct production of affordable rental housing.

• Maintaining the quality of the existing rental stock through rehabilitation where appropriate.

• Establishing an effective code enforcement program, tailored to the needs of Dodge City.

5. Develop an effective, multi-faceted neighborhood conservation and rehabilitation program.

6. Establish an improved working relationship between builders and developers anal city government, resulting in a development partnership which nevertheless maintains good standards of development quality.

7. Establishing an equitable means of financing community-wide infrastructure to support development, including stormwater management and sewer system extensions.

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8. Increase the capacity of Dodge City's contracting industry by taking advantage of potential educational and economic development programs.

9. Provide supporting educational and counseling services to enable residents to enter the housing market on a successful basis.

10. Implement a project to improve major features of the physical environment that affect community image, most notably city entrances and the Wyatt Earp Boulevard corridor.

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The community should establish a Dodge City Housing Partnership composed of four elements: a community development entity, a supporting Lending Consortium, opportunities for employer assistance in housing, and an information and counseling service.

Dodge City lacks a structure to implement housing initiatives. It has participants in the process - city government, the Dodge City/Ford County Development Corporation, interested lenders and major employers, and a public housing authority. But it lacks an organizing structure to pull these participants together. Great Plains Development is a CHDO, but its 28-county jurisdiction and relative lack of experience in innovative housing development prevents it from focusing full-time on Dodge City's housing issues. A housing structure for Dodge City has four vital components: the a development corporation, a lending consortium, opportunities for major employer involvement in housing, and a housing information and counseling service.

f t is important to note that this structure supports and complements but in no way substitutes for the private sector. Other parts of this overall strategy are intended to remove obstacles that prevent the private sector from meeting affordable housing needs. The Housing Partnership should only be involved as a development entity for worthy projects which for various reasons cannot be executed by private businesses. The Partnership itself includes:

• A development corporation which should be incorporated as a Community Housing Development Organization (CHDO) or a Community Development Corporation (CDC). This entity directly develops or organizes affordable housing efforts which are not occurring or practical in the private market.

• The Lending Consortium shares the risk of lending for untested or higher risk projects. Specific areas of concentration for a consortium may include:

- Projects developed by a CDC/CHDO. - Mortgage lending to marginally bankable, low and moderate income buyers. - Construction lending to builders of affordable housing.

• Employee-assisted housing provides methods by which major employers offer specific assistance to employees, potentially in concert with other development activities of the partnership.

• An information arid counseling service, to assist new housing buyers with such issues as credit counseling and qualification assistance.

The Community Development Corporation

These bodies are private, nonprofit corporations that operate as developers or general partners in affordable housing ventures. CHDO's are non-profit development corporations which meets specific requirements for community representation on its board of directors and are authorized to receive direct funding from the state-administered HOME program. The proposed Housing Partnership should include such a corporation, and should be a key participant in:

The Dodge City CHAT Report: Housing Needs and Strategies Page 30

• New, affordable rental housing development.

• Rehabilitation projects that involve purchase and resale of houses.

• Organization of housing development partnerships with private developers.

• Innovative programs to address special housing demands created by the expansion of National Beef or other major employers.

Possible project types that respond to Dodge City's needs are presented in the STRATEGIC PROJECTS section.

Tile Lending Consortium

The Lending Consortium shares the exposure of risky, but strategic, housing developments. Dodge City has lenders who are actively engaged in the community and who have defined housing as a critical city concerti. The consortium approach can help assure a collaborative approach to lending for unconventional projects.

The central missions of the consortium should include:

• Construction and long-term financing of key project types that are identified in the community as high priorities. This may include financings of both private and nonprofit projects.

• Construction lending to private builders of affordable housing, particularly single-family or duplex/townhouse projects. Interim financing using a community housing investment fund can help involve small builders in the development of key housing types, while lowering the risk of builders in important, but marginally profitable areas. A construction loan pool eases the flow of capital to strategic project types, while shifting the complete risk for these projects from individual enterprises to the private community at large. It permits small businesses to realize economies of scale by building a group of houses as part of a project, rather than individual, scattered units one at a time. In addition, this shift of the risk allows builders to expand an inventory of available speculative houses.

• Mortgage financing to low and moderate-income buyers. The consortium may be a mortgage lender to bankable low and moderate-income buyers who fall outside of normal underwriting standards for institutions. A consortium shares the risk of these mortgages among lenders. In these situations, the consortium may hold the mortgage notes in its own portfoho, as secondary markets are not always available.

• Rehabilitation financing. The consortium may be the financier of a community rehabilitation program, again sharing the private side exposure among the community's institutions and the CDC's capital fund.

Capitalization of the Consortium and its programs should be accomplished as follows:

• Proportionate funding by lenders. An equitable model would be participation in individual loans or in the construction loan pool proportional to overall assets.

• Corporate contributions and investments. The Dodge City Housing Partnership, including the

The Dodge City CHAT Report: Housing Needs and Strategies Page 31

consortium, should finance and develop in the public interest, but should not be a charitable organization. Thus, investments from Dodge City's business community may be an important source of working capital. These investments, creating a community housing investment fund, might be focused on:

- construction financings, with shorter-term paybacks, and - long-term financing of key development projects, such as senior housing.

Employer-Assisted Housing

Employers should consider housing assistance as part of recruitment and benefit packages for current and prospective employees. Avenues for involvement may include:

• Investment in the equity for affordable housing developments financed under the Section 42 low

DODGE CITY HOUSING

PARTNERSHIP

May operate under auspices of

DC/FCDC.

COMMUNITY

DEVELOPMENT

CORPORATION

• Implements specific projects.

• Forms development and financing partnerships with lenders and private sector.

LENDERS CON

SORTIUM

• Independent board makes lending decisions.

• Provides risk capital on a consortium basis.

• May include investments from business.

• Does not make grants.

EMPLOYER

INVOLVEMENT

• Equity investments in tax credit projects.

• Downpayment setaside program.

INFORMATION/

COUNSELING

SERVICE

• Provides new homebuyer assistance, information, and counseling

• May be fee driven

• Potential United Way agency

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Page 32

income housing tax credit program. These investments receive substantial tax advantages, making them an attractive and financially rewarding investment option for some individuals and corporations.

• Downpayment assistance programs, potentially patterned after 401 (k) programs. This program would permit employees to withhold a set amount of their salaries for deposit in an interest-bearing account. These employee contributions would be matched by a contribution from the employer. The downpayment matching program would continue for a specified period (up to three years) and /or a specified maximum Alternatively, the employer could advance downpayment loans, repaid on the same basis.

Information and Counseling Service

The Partnership should maintain a housing assistance capability, potentially through arrangement with another organization or the Community Credit Union, which provides:

• Information to newcomers on available housing in the community.

• Information and educational assistance, helping new buyers navigate through the home purchase process.

• Referrals to other programs and sources of funding.

• Counseling and assistance with debt management, if required.

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buyer to afford a new home. In this scenario, the deferred payment mortgage can include part of the mortgage cost as well as infrastructure cost. Let us take the example of an affordable housing unit, designed for sale at. $85,000. Infrastructure (or special assessments) normally would add approximately $10,000 to this unit, creating an effective cost of $95,000. Assuming a 3% downpayment and a 7.5% interest rate with 30-year amortization, this unit would require a monthly payment of $644 for principal and interest.

In the deferred payment situation, the infrastructure cost and $10,000 of the mortgage cost would be written as a deferred payment second mortgage. The effective initial cost of the unit is reduced to $75,000. The monthly payment for principal and interest then drops to $508 without payment of special assessments. The payment for infrastructure would be derived from the city's Infrastructure Bank; the mortgage deferral could utilize either the Housing Fund, or CDBG/HOME funds.

As in the earlier example, the mortgage would have a participation clause, by which the Housing Fund participated equivalently in the appreciation of property on sale. Assume that on resale, the house sells for $105,000. The initial public funding accounted for 21% ($20,000 of $95,000) of the house's price. On resale, the Housing Fund similarly recaptures 21 % of the sales value, or $22,050. These funds are then recycled back into the fund to be used for similar purposes. If the value of the house declines, the Housing Fund's recovery of the mortgage similarly declines.

DOWNPAYMENT ASSISTANCE

Downpayment assistance programs (including the Employer Assisted Housing concept described and programs administered by the Kansas Department of Housing and Commerce) can help make housing accessible to moderate-income buyers.

VACANT INFILL LOTS

A significant part of a new construction program should involve a reconstruction of major parts of Dodge City's "central city." This work will be accomplished most successfully when a significant number of lots can ire developed in close enough proximity to make a substantial visual impact in a neighborhood. Thus, the Housing Director should identify areas where acquisition of deteriorated houses and existing vacant lots can assemble substantial contiguous or near contiguous sites. These sites may be assembled and conveyed to builders for development of affordable housing.

Actions which are needed to promote development of these sites include:

• Possible acquisition and assembly of vacant lots by the city of CDC. Design criteria for houses should be established. Public acquisition should only occur if private builders are unable to assemble sites.

• Changes in zoning regulations to permit development of new houses on lots which may not meet contemporary development regulations. These regulations may allow smaller lots or lot widths, reduced setbacks, or other allowances on legal lots of record.

• Participation of approved affordable housing in the participatory deferred payment program.

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CDC PURCHASE AND RESALE

This program represents an approach to the preservation and rehabilitation of existing housing. Here, the conununity development corporation buys and rehabilitates suitable houses for resale to new owners. The Lenders Consortium finances the acquisition and rehabilitation, with a take-out on the interim financing funded as an FHA or conventional mortgage. Houses are marketed through the normal real estate sales process.

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Development of new, affordable rental housing is an important development priority for the community. When possible, new development should provide a transition to owner-occupancy and avoid a large project orientation.

Dodge City has developed about 170 units of rental housing since 1990, including such substantial projects as Sundance Apartments which provides 96 units of affordable rental housing. I lowever, rental housing is a critical priority and is in very short supply in the city. This shortage makes it especially difficult for Dodge City to respond to an emerging housing need such as the accommodation of a major employee expansion at National Beef. Priorities for rental housing development include:

• Affordable rental housing. Development for low-income households can utilize HOME funds, TIF, and Section 42 tax credits for financing. The proposed CDC may act as a general partner assembling limited partnerships to help promote needed housing for the city's low income population. Rent-to-own development, outlined as a potential CDC project, can provide avenues for low-income people to transition from renter occupancy with greater economic self-sufficiency.

• Rent-to-Own. This new approach provides an opportunity for households of moderate income establishing themselves in Dodge City to rent a home while building equity toward eventual purchase. In this program, the CDC builds new rental housing in single-family, duplex, townhouse, or fourplex configurations. These units may be built with the assistance of the Section 42 tax credit. A portion of the family's rent is placed in an escrow that is directed toward downpayment. At the end of a specific period, the residents can then use the accumulated escrow as a downpayment to purchase either a new house or an existing unit. The rent-to-own program gives young families the opportunity to try out Dodge City as well as building equity and wealth. This program is appropriate to a community that is positioning itself to attract a new generation of residents.

• Rental rehabilitation. Options for this program are discussed under HOUSING CONSERVATION strategies.

• Housing for New F-jwtployees. The possibility of a substantial expansion at National Beef provides an important community challenge for Dodge City. The current rental housing shortage makes it virtually impossible for the city to accommodate this demand without significant action. However, conventional walk-tip apartment construction may not be appropriate to this new workforce. If the National Beef expansion proceeds, we recommend a community mobilization that should include:

- Acceleration of other housing development efforts.

- Creation of a residential village, including layout of a village setting with appropriate streets and community plazas arid open spaces. Housing in the village may be factory built, duplex units, designed to accommodate basic residential needs in a decent and dignified way.

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Manufactured housing development is a critical part of the housing solution for Dodge City. However, this development should have the ownership characteristics of a traditional neighborhood.

Mobile homes or ;manufactured housing are a substantial part of Dodge City's housing supply. The 1990 census indicated that the city had 795 units classified as "mobile homes," representing about 15% of the city's total housing supply. Some of these mobile home units are in poor condition, and are located in rental mobile home parks, many of which are developed to minimum standards. The city has taken some steps to improve this situation, including:

• Prohibition with the Year 2000 Zoning Ordinance of the R-4 district, which allowed placement of mobile homes on individual lots. This was sometimes used as a way to produce small, substandard clusters of mobile homes.

• Approval by the county of the 200 pad Iseman project near Dodge City Airport. This project is planned for development to high standards.

Mobile home development can respond quickly to housing needs for new employees, and the limited buying power of many residents, manufactured housing will remain a part of the city's housing picture. In addition, manufactured housing may be an important transitional setting to other components of the city's housing market. Manufactured housing should be developed in settings that have a greater resemblance to traditional single-family neighborhoods. The city should develop standards and work with developers to implement this type of concept.

Components of a "manufactured housing subdivision" include:

• Distinctly defined lots. We prefer a situation where lots are legally described and conveyed to the owner of the unit. However, some lots may be leased to unit owners, recognizing the mobility of some segments of Dodge City's population. Lot sizes may vary, typically ranging from 4,000 to 6,000 square feet.

• Streets developed to contemporary subdivision standards, providing direct access to public services. This concept envisions the facility as a subdivision with public streets, rather than a compound without a clear public environment.

• Street and site landscaping, parks and recreational facilities, and other amenities, along with a plan that incorporates good design practice.

• Drainage, sewer, and water services developed to subdivision standards.

The city may also work with owners of existing mobile home developments, utilizing funding sources such as CDBG to upgrade development standards and rehabilitate mobile home park sites. Both city and county should enforce existing standards for mobile home park development.

The Dodge City CHAT Report: Housing Needs and Strategies Page 38

-.^t y g," a a r. i m v i,:~,

. ,'!J

Housing C onservation t ;f ,

. ..,_.. ... . ,.. ., _..,._,....,."..,~,."~",e>.",.". . .k.•~~.,

Dodge City should implement a residential conservation program.

Housing rehabilitation must be a high priority for the city. A comprehensive approach should:

• Establish an effective and appropriate housing code enforcement program.

• Broaden the reach of rehabilitation financing.

• Provide home handyman assistance for minor repairs and upgrading of houses of seniors and disabled people.

CODE ENFORCEMENT

A previous city effort to develop and implement a minimum housing standards program was unsuccessful in the face of opposition from property owners. However, such a program remains important, although it must be carefully drafted and applied. The effort should be revived, using the assistance of an advisory committee of property owners. This process should create a consensus around a moderate and generally acceptable set of standards. it is particularly important for the City Commission to establish that such on effort has its attention and support before embarking on the process. The program should avoid elements that are clearly unacceptable to a large majority of owners such as annual inspections and fees,. It is important to put a mutually acceptable system of code enforcement in place. This system must be paired with accelerated rental development activity.

A REHABILITATION PROGRAM

Many housing unit, in Dodge City still require at least moderate rehabilitation. A coordinated rehabilitation strategy, operating on a reliable, multi-year basis, is vital to ensure preservation of the area's critical supply of existing housing. A comprehensive rehabilitation program, appropriate to the respective needs of individual residential areas and towns, should include three program types. These include:

• Continuing direct rehabilitation loan programs. This program would make direct forgIveable loans and grants to homeowners from Community Development Block Grant (CDBG) funds. The program is most appropriate to homeowners with low incomes who are not otherwise bankable.

• A leveraged rehabilitation loan program. This approach leverages private loan funds (often through the FHA Title I Home Improvement Loan program) by combining private loans with CDBG or other public funds to produce a below market interest rate for homeowners. The program works most effectively in moderate income neighborhoods with minor rehabilitation needs and some demand for home improvements. It is effective in expanding the amount of work completed by a fixed amount of public funding. Loans in a leveraged loan program can be originated through individual lenders or through the proposed lenders' consortium. The experience of local lenders with FHA Title I can help expedite implementation of this program.

• Purchase and rehab programs. These concepts are described earlier in this report.

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H ousing onservation

RENTAL REHABILITATION

A single-family rehabilitation program should be augmented with a rental rehabilitation program, particularly important: given Lodge City's large proportion of rental housing. This should provide financing for the improvement of sound rental properties in need of rehabilitation on an area-wide basis.

The rental rehabilitation program should operate through a leveraged rehabilitation program- Mechanically, the foundation of a rental rehabilitation program should be private financing. An individual institution or the lenders' consortium should take a leading role in marketing the availability of rehabilitation loans to small rental property owners. A reservation of HOME funds could be secured and utilized by the city to assist with blended loans when some form of subsidy is needed. In some cases, unit rehabilitation may be paired with Section 8 certificates, to help provide adequate cash flow to meet debt service.

HANDYMAN PROGRAM

A Home Handyman Program can provide minor home repair assistance for elderly and disabled homeowners, using volunteer assistance. This might be a substitute to full rehabilitation for units whose value does not justify a comprehensive investment. Features of the program include:

• Administration an d staffing through a community action agency or other public service agency.

• Focus on minor repairs, such as screen replacements, gutters, painting, and other repairs.

• Purchase of materials through charitable contributions or through a community foundation.

TARGET AREA CONCEPT

The city should consider a more comprehensive neighborhood conservation concept within a strategic target area. The ideal rehabilitation target area combines documentable needs with a strong existing neighborhood fabric. This comprehensive approach includes:

• Targeting a residential rehabilitation program to the area.

• Identifying potential infill sites in the area and developing residential projects with architectural design consistent with the character of the neighborhood.

• Where necessary, making supporting improvements to streets and infrastructure.

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Dodge City should strengthen the working relationships between city government and the private development and construction community.

A strong working relationship, built on an atmosphere of cooperation and mutual respect, is important between a city government and the private development community Dodge City must work to build this relationship. Clearly, there are two sides to every question. The process of regulatory review and enforcement of standards often seems arbitrary and pointless to developers who are impatient to proceed with their projects. On the other hand, applications that come to the city are sometimes incomplete or incorrect, leading to consternation on the part of regulators. This relationship always has the potential for developing into conflict and resentment that serves the interest of neither party.

We recommend steps to re-establish a good relationship between the city's public and private sectors. These steps include:

• Designation by the city of a Development Coordinator who manages the approval process and is the primary point of contact for the development community. It appears that authority for approval is currently divided among staff members. The logical choice for this Development Coordination role is the Community Development Director.

• Initiation of a regularly scheduled roundtable with city staff and builder/developers to consider regulatory issues and problems and to maintain regular contact. This roundtable should generally meet monthly.

• Creation of a Developers Guide to Dodge City, providing an attractive and engaging guide to procedures and requirements for development review in the city. This guide should outline deadlines and requirements for complete applications. It is particularly important that elected officials support these requirements, which can lead to more complete applications and fewer "rush jobs" that all too often lead to resentment, misunderstandings, and mistakes.. There is no excuse for delays of complete applications. However, delays can often be the result of problems with applications.

• A customer orientation on the part of regulatory staff; along with respect for staff and their work on the part of the development community.

The Dodge City CHAT Report: Housing Needs and Strategies Page 41

Dodge City should address community-scale infrastructure development on an equitable financing basis.

Two community--scale infrastructure issues have a major effect on development. These include stormwater management and wastewater system extensions and facilities.

issues that affect

STORMWATER MANAGEMENT

Dodge City enforces a strong stormwater management statute which requires developers to provide on-site detention of stormwater on individual properties. While this is an extremely progressive policy, in many cases a basin approach may be a sounder approach to stormwater management. The city's current comprehensive planning process should include a stormwater management component that may indicate locations for regional detention facilities. If a basin-wide approach is used, a financing mechanism should be instituted which assesses development fairly for its impact on the overall drainage system. Such a contribution, if consistent with the comprehensive plan, can substitute for small detention facilities on individual sites.

SEWER EXTENSIONS AND LIFT STATIONS

Sanitary sewer extensions and lift stations are necessary to open additional areas in Dodge City's natural growth directions to development. The city may elect to subsidize this development by providing public financing for these facilities. On the other hand, it may consider a benefit fee, in which at least some part of the cost of these facilities are assessed across the area that is opened for development. For example, the cost of necessary improvements may be $100,000, opening an area of 10() acres for development. The city may provide front end revenue bonding for the improvement, reimbursed on a per acre cost ($1,0(>0 per acre in this case, plus interest if included).

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