Based
on the city's income distribution, Table 5 presents a Ten Year Development and
Pricing Program for Great Bend. 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 Great Bend will be about 65% owner occupied and 35% renter-occupied,
resembling the current makeup of the housing stock.
- Owner-occupied
units will be distributed roughly in proportion to the income distribution
of households for whom owner occupancy is an appropriate strategy.
- Lower-income
households will generally be accommodated in rental development.
The annual average production of 11 units indicated by this
analysis is slightly lower than the average annual increase of about 15 units
experienced during the 1990s. Employment increases could greatly increase
demand.
The analysis indicates a demand between 2001 and 2005 for
about 33 owner-occupied units with prices below $110,000 and 26 rental units
with monthly housing costs below $500, or a total of 59 "affordable"
housing units. Therefore, a housing program for Great Bend should establish
an objective of developing about 10 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. Over a ten-year period, the projections
indicate a demand for 70 "affordable" owner-occupied units (priced
below $110,000) and 54 "affordable" rental units.
It is important to note that these projections are based on
trends established during the 1990's. Expansion of jobs at area businesses
and industries (including CPI and GBI which are currently in hiring modes),
community marketing and housing production efforts that successfully encourage
regional residents or commuters to move to Great Bend in greater numbers,
or other successful economic development efforts can have a major impact on
these forecasts. Conceivably, Great Bend Could reach an annual demand level
of 30 units, or 300 over a ten-year period.
OPINION SURVEY
This section summarizes results of the Housing Perception
Survey, completed by a sample of 39 participants in the CHAT process.
EFFECT OF LOCAL ECONOMY
Most respondents were relatively negative about the strength
of the area's economy. About 73% reported that the effect of the economy was
either neutral or negative, with 43% responding that the economy was at least
"somewhat negative."
DEMAND FOR, SINGLE-FAMILY HOMES
Only about 29% of the overall sample considered the den-land
for single-family houses to exceed supply. A majority of respondents reported
an undersupply of single-family housing in the range of $40,000 to $80,000.
Very few reported an undersupply in prices above $100,000.
DEMAND FOR, RENTAL HOUSING
About 44% of the overall sample considered the demand for
rental housing to exceed supply. About 56% of survey participants report an
undersupply of housing with rents below $300, while 47% report an undersupply
between $300 and $400.
SINGLE-FAMILY PRICE TRENDS
About half of all respondents consider house prices to be
increasing. About 41% of the sample reports that prices are "moderately
increasing" and an additional 8% report "substantial" increases.
NEEDS OF SPECIFIC GROUPS
Respondents most frequently view the current housing market
as successfully meeting the needs of empty nesters and the elderly. On the
other hand, those groups who are least effectively accomodated by the current
market include single professionals.
About 68% believe that the market is adequately meeting the
needs of seniors. The remaining respondents (32%) 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 to be primary targets for new, owner-occupied housing:
Figure
1
% Reporting Undersupply of Single-Family Housing by Price Range
- Young
families (67%)
- Middle income (67%)
- Move-up markets (64%)
- First time home buyers,
mature families, low- and moderate-income families, and upper income
buyers (44%)
The following groups were most
frequently considered to be target markets for new rental housing:
- Singles (85%)
- Low and moderate income
households (74%)
- Young families (44%)
- Seniors (36%)
Respondents considered the highest
demand for housing types to be:
- Middle-sized, three-bedroom
single-family houses (74%)
- Affordable, small single-family
houses (59%)
- Low- and moderate-income
apartments (59%)
- Townhouses and duplexes
(38%)
LOT
SUPPLY
About 45% of respondents rated
the supply of buildable improved lots co be severely in undersupply, while
another 34% perceived a moderate undersupply.
Figure
2
% Reporting Undersupply of Rental Housing by Price Range
LOWER
COST HOUSING METHODS
Respondents ranked the acceptability
of non-conventional development types to lower housing costs in the following
order:
- Duplexes or townhouses (44%)
- Manufactured housing (33%)
- High density cluster housing
(36%)
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 Great Bend area. Ratings of these potential actions follow:
- Development of Infrastructure
(4.26)
- Rehabilitation loans (4.09)
- Downpayment assistance (3.82)
- Grants and low-interest loans
(3.77)
- Mortgage assistance (3.59)
- Construction financing (3.53)
- Section 8 assisted housing (3.48)
- Land acquisition for development
(3.20)
Figure
3
Potential Targets for New Owner-Occupied Housing
Figure
4
Potential Targets for New Rental Housing
Housing
Needs and Strategies
Great Bend brings
significant resources toward housing growth and development. These include:
A
FUNDAMENTALLY SOUND ECONOMY
Despite some perceptions to the
contrary, Great Bend has a sound and diverse local economy. The community
remains a substantial regional trade center, with a wide array of retail and
service businesses. It also has substantial growth centers in the information
and health sectors, key components for future growth. CPI, a processor of
pension and retirement plans, has redeveloped the vacant Great Bend Plaza
Shopping Center on the north side of town and is expanding employment at a
substantial rate. The Central Kansas Medical Center is one of the city's largest
employers and is developing a strategic specialization in oncology. Great
Bend also has a national headquarters office and manufacturing facility in
Fuller Brush and substantial local industries such as Great Bend Industries,
Essex Corporation, and Great Bend Manufacturing. The city's agricultural base
remains important as well, and is a center for distribution with its large
Co-op and its meat processing plant. Finally, Barton County Community College,
located just north of the city off US 281 and the city's school district add
a large educational component to the city's job base. While no longer enjoying
the wealth of the oil-based economy of the pre-1 985 era, Great Bend provides
a surprisingly large number of employment opportunities; its economic diversity
nevertheless provide a strong foundation for future economic growth.
A
PROGRESSIVE AND INVOLVED CITY GOVERNMENT
City government in Great Bend has
re-energized itself at a crossroads in the city's development history. The
city is fortunate to have a city administrator who combines stable, long-term
leadership and perspective with an infectious enthusiasm and pride in the
city. His vision for the city and its potential is almost physically palpable.
The political leadership, including the mayor and council, are similarly enthusiastic
and poised to bring about a community renaissance. Great Bend has had major
recent political conflicts, most recently over the controversial siting of
a Seaboard packing plant in the city. But these debates seem to have subsided
and a structure of strong, visionary community leadership appears to be emerging.
QUALITY OF LIFE
INVESTMENTS
Great Bend has generally recognized
the importance of investments in community quality. The zoo is undergoing
a major enhancement program, largely financed by private contributions. The
community recently completed a $2.6 million downtown streetscape project,
also completed with substantial charitable support. The city has several high
quality, multi-use open spaces, including Brit Spaugh Park, Veteran's Park,
and Stone Lake, and is making other important recreational investments, including,
new soccer fields and a skateboard park. Other important projects in planning
stages include a downtown Information Station, a community welcome center;
a water park; and trail system development. Cheyenne Bottoms, a project of
the Nature Conservancy, preserves a 41,000 acre wetlands area north of the
city; the Quivera Natural Wildlife Refuge preserves another unique wetlands
environment south of the city. These major resources create a superb opportunity
for environmental study and tourism.
Great Bend also has done a good
job of planning community events and marketing its attractions through published
materials. Major events include the innovative Trail of Lights program. The
Tours on a Tankful project helps lead visitors through Great Bend's community
resources. All of these efforts recognize the links between community quality
and the long-term ability to attract residents and investments.
DEVELOPMENT CAPABILITIES
AND PROGRAMS
Great Bend has been a relative
latecomer to community development programs, but has set up some of the structures
needed to accomplish major results. Housing Opportunities, Inc., a Community
Housing Development Organization, has been in full operation for only about
a year, but is achieving substantial results. HOI has four self-help houses
Linder construction and plans to complete seven additional units during the
next year. These houses combine Rural Development low-interest financing with
"sweat equity," quality super-vision and program administration
to provide excellent affordable home-ownership. HOI is also capable of other
project development, including duplex and tax-credit rental development. Great
Bend has also established a Neighborhood Revitalization Program, providing
tax rebates for housing development and rehabilitation in the city. In addition,
the city is working with Habitat for Humanity. These activities provide a
basis for further work which can be expanded in the future.
A SUBSTANTIAL
HOMEBUILDER COMMUNITY
Great Bend's development market
has been relatively depressed since the oil crash of the mid-1980's. Despite
this, the city's core of homebuilders has survived and provide a capable nucleus.
Builders are primarily involved in custom residential development, remodeling,
and commercial construction. Most report a desire to expand beyond their current
level of construction activity and to become involved in an affordable housing
market, if this involvement can be shielded from unwise personal risks.
ACTIVE FINANCIAL
INSTITUTIONS
Great Bend has home-based financial
institutions committed to creative program design. One institution (Farmers
Bank & Trust) is involved in the Federal Horne Loan Bank's new Rural Development
Program, which can bring significant resources to affordable housing development
in the city. Other institutions are owned by out-of-town corporations, but
represent organizations which have also been involved in housing initiatives.
These organizations represent some of the region's largest banks. Most participants
in the housing process ive the area's lenders high marks for their efforts
91 to make financing available for housing.
EDUCATIONAL FACILITIES
Great Bend is making a $24 million
investment in the physical facilities of its school system, including a $10
million expansion and renovation of its high school. The Community College
has also grown to a major campus.
ENGAGEMENT OF
YOUNG PEOPLE
Great Bend has developed innovative
programs designed to engage young people in the community, rather than relegate
them to the role of uninvolved spectators. It operates a Youth Academy program,
an educational effort that familiarizes young people with major community
features and resources. The city is also involving youth in the design and
operation of the skateboard park. The city has also provided a tour of major
visitor resources for employees of convenience stores and similar businesses,
many of whom are young. These efforts recognize the value in creating links
of allegiance between the city and its young people, encouraging connections
which may later encourage talented youth to establish their households in
their hometown.
LAND RESOURCES
FOR THE FUTURE
While the supply of development
areas and the financing of infrastructure are significant community issues,
open land resources are relatively abundant. The city's major flood control
project has made acres of formerly flood-prone land in or contiguous to the
city available for development without fear of property damage. In many areas
(particularly to the west), Great Bend has provided an open-ended street system
that also allows incremental extensions of streets and new lots. All of these
areas can be reasonably provided with urban services.
EXISTING, AFFORDABLE
HOUSING
Great Bend has a supply of housing
which continues to provide the cornerstone for the area's future housing stock.
Average home prices have appreciated significantly during the 1990's, growing
from about $39,000 in 1990 to about $63,000 in 2000. Even at this level, the
stock remains relatively affordable.
A community housing
program must provide a strategic focus, no effort can hope to operate on every
front. The following issues and common themes emerge from this analysis:
Growth is one of Great Bend's overriding
issues. The city's population has fallen during the last part of the 20th
century, suffering from the crash of the oil economy in the mid-1980's. The
city's 1990 comprehensive plan indicates a peak population of about 17,500
in 1985, which then declined to about 15,500 by 1990. The population may be
stabilizing, but is certainly not growing. This problem exists despite significant
job growth among some of the city's ma *or employers. Indeed, the oil crash
clearly left psychological scars on the city's perception of itself, which
are only now beginning to dissipate.
Many focus group participants strongly
identify population attraction as a key community priority. They also believe
that Great Bend lacks attractions to bring people to town.
- A Perception
of an Opportunity Gap
Related to population stagnation
is at least a perception that Great Bend lacks opportunities. We believe that
the evidence strongly refutes this perception. Great Bend has strong employment
centers in growth areas, such as information processing, retirement planning,
education, and health care. The city has a major presence in the manufacture
of hydraulic systems, fiber optics, and other technologies. Yet, despite that
diversification, many people believe that Great Bend's employment base remains
rooted in agriculture and oil. When this message is conveyed to both young
people and people in a regional market, the community reinforces its difficulties
in retaining and attracting population.
This perception carries through
to income expectations. Great Bend's estimated median household income is
somewhat over $33,000. While not high, it is also not inordinately low. Wage
scales tend to be somewhat on the low side, with typical starting wages in
a $6 to $7 per hour range. While mature workers earn at higher rates, these
low initial wages can discourage people from taking available positions.
Great Bend can more appropriately
package itself as a center for opportunity, and should consider orienting
its economic development programs toward this image.
Great Bend was clearly an "underachiever"
in housing production during the 1990's. A rule of thumb for moderately growing
communities is to average 40 to 50 units per year for each 10,000 people in
the city. By way of contrast, Great Bend generated only about 16 units per
year during the 1990's. A combination of factors led to this, including absorption
of the high vacancies that resulted from the oil crash, the reaction to that
severe economic transition, the after-effects of a major and crippling flood,
and continuing stagnation in the population. Very slow absorption of subdivided
lots also hurt developers, many of whom were unable to survive this period.
Great Bend can recover from this,
despite that fact that the growth projections estimated in the first part
of this report suggest only about a 25% increase in housing production. Fortunately,
much of the city's homebuilding industry remains intact. The city must position
itself to respond to a renewed housing demand during the next decade, a demand
which may not be anticipated by simple trend analysis.
- A Lack of New
Subdivisions
Subdivision development is a risky
proposition under the best of Circumstances. It is impossible from a private
profit side in an environment with slow lot absorption rates. Developers bear
heavy front end costs for land and improvements. Lot prices may be barely
adequate to cover these costs. When slow absorption adds financing costs,
the developer is extremely likely to lose money.
In many cases, special assessments
are utilized to provide public financing for capital improvements, which are
then repaid over a ten-year period. However, the special assessment policy
also requires steady absorption to work. When lots are slow to be built upon,
the developer either becomes liable for the specials as the property owner
or the city becomes responsible for paying off the initial revenue bonds.
In any case, special assessments can add an additional burden to moderate-
or medium-income homebuyers.
In Great Bend, these risks have
effectively shut down new subdivision development. The Country Club Estates
subdivision pre-paid the special assessments, but again slow build-out of
lots has made this a money-losing enterprise for the developer. Indeed, most
participants cite infrastructure and subdivision development as the city 's
leading housing issue.
- Condition and
Marketability of Existing Housing
While most of Great Bend's housing
stock is "affordable" by normal standards (that is priced below
$100,000), much of this housing is not consistent with the tastes and preferences
of contemporary buyers. Because the city's housing industry slowed dramatically
during the last 15 years, Great Bend lacks contemporary, moderately-priced
housing. Homes that come up for sale at "affordable" costs may have
the floor plans and finishes of an earlier period. Younger buyers, less interested
in remodeling than previous generations, find these houses unacceptable and
turn away from them. When these houses also experience repair problems, they
become even less acceptable. Many focus group participants report unsatisfactory
initial experiences as they enter the city's housing market.
- Rental Housing
Economics and Conditions
While this report does not include
a condition survey of the community, many focus group participants report
that a portion of the city's rental supply is Ila relatively poor condition.
Rental economics are at least partially to blame for this problem. Rent levels
in Great bend are low, in many cases no higher than they were 20 years ago.
This provides inadequate cash flow to support modernization. Thus, while rental
housing remains "affordable," it is also deteriorating and may eventually
leave the housing supply.
Low rents also make the development
of new rental housing difficult. New construction requires Substantially higher
rents than the prevailing market to support debt service. Despite this, new
construction is sometimes necessary to increase typical rents and increase
the health of the rental stock. New development often requires existing properties
to upgrade in order to remain competitive. But the higher rents can provide
the economic means to make these necessary improvements.
In addressing housing issues, Great
Bend faces a debate over the role of government. Simply stated, government
must struggle with when and how to intervene in housing markets, while not
adversely affecting people who have outstanding investments on the ground.
In thinking about housing development, there are four parties that may have
a role in the process:
- The private sector.
- Nonprofit developers,
such as HOI.
- Lenders, who can provide
the resources necessary to make housing occur.
- Government.
We believe that the following general
principles should apply:
1. Housing should generally
be seen as a private sector responsibility.
2. Government should participate
in a surgical way to remove obstacles or complete roles that the private sector,
acting alone, cannot or does not fulfill.
3. Nonprofit developers
should complete forms of development which are needed but are impossible for
profit-driven businesses to undertake. The current self-help program, with
its heavy administrative component and special financing, is an example of
such a project.
4. Lenders can act together
in consortium to help finance unusual or riskier project types.
- Preservation
of Existing Housing Stock
Much of Great Bend's housing stock
is in good condition. The city's major investment in affordable housing is
already on the ground. The preservation of these units is vital to the ability
of each city to maintain a level of affordable housing.
An important housing
issue in Kansas communities 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 problem, it is necessary to define "affordability."
Generally, an affordable housing unit is one which allows a household
to pay 30% or 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 affordability.
Table 2 examines
what affordability means for four possible household scenarios in the Great
Bend market. These scenarios are based on typical situations and
average wages within the region. They include:
- A single parent household,
working at an entry level hourly wage of $7.
- A two-earner household,
accounting for 1.5 FTE's working at an average wage of $9.50. This is consistent
with the typical regional wage of $8 to $10 per hour.
- 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.
Great
Bend should provide low-cost housing opportunities that enable new residents
to build equity in the community.
Three approaches are recommended to allow low-income households
to become established and earn equity in Great Bend. These approaches are:
- Self-Help Housing
- Rent-to-Own
- Acquisition/rehab/resale
SELF-HELP HOUSING
This continues HOI's new but extremely promising Self-Help
Housing program. Financing for this program is provided through USDA's Rural
Development program. In it:
- HOI provides basic development services, including construction
management, and supervises the sweat equity component of the program.
- RD provides construction and end-financing, with interest
rates graduated to the needs of the buyer.
- The City of Great Bend may provide land for construction.
RENT-TO-OWN
Most local stakeholders cite a vital need for affordable rental
housing, but advocate moving away from a "project" approach. A new
type of development, called "rent-to-own" combines affordable housing
with future opportunities for homeownership. This new approach provides an
opportunity for households of moderate income establishing themselves in Great
Bend to rent a home while building equity toward eventual purchase. In this
programs:
- HOI builds new rental housing in single-family, duplex,
townhouse, or four-plex configurations using the Section 42 tax credit, providing
a significant incentive for private equity investment. A portion of the family's
rent is placed in an escrow that is directed toward down payment. At the end
of a specific period, the residents can then use the accumulated escrow as
a down payment to purchase either a new or existing house.
- The Lenders Consortium provide construction period financing
for the development.
- The city may acquire sites and apply for CDBG/HOME funds
to assist the development.
ACQUISITION/REHAB/RESALE
Great Bend's abundant supply of relatively small, low-cost
houses, provide opportunities for affordable home ownership. Yet, these houses,
while inexpensive, are often unacceptable to new buyers. They may be too small,
need substantial repair, or require major renovations to meet contemporary
tastes. Yet, few young households have the skills or appetite to tackle the
proverbial "fixer-upper" house.
In this program:
- HOI buys and rehabilitates suitable houses for resale to
new owners.
- The Lenders Consortium or CDBG funds are used to finance
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.
Great Bend should provide a distinctive setting and
product for moderate-income homebuyers.
This step creates a development with special qualities, accommodating
moderately-priced, owner-occupied new housing. The approach includes:
- A new subdivision,
specifically designed with small lots and features which create an environment
with lasting value.
- Construction
of new houses, using the private building community.
- Special mortgage
financing to bring houses within affordable ranges for the target population.
A MODEL SUBDIVISION
This component includes the design and implementation of a
new development, designed specifically to provide improved sites for a variety
of moderately-priced housing alternatives. Such a development should include
distinctive design features that make it a unique and distinctive place for
marketing purposes. It is essential that such a project not be a scaled-back
version of a conventional subdivision with similarly scaled-back versions
of larger, more expensive houses. Indeed, "affordable" developments
which simply scale back conventional subdivision design and build smaller
houses often do not enjoy market success, particularly when compared to existing
houses in mature neighborhoods. Instead, such projects should develop their
own integrity by using unique design features which establish a distinctive
image. Special features may include a "village green," ornamental
lighting, and special graphics, distinctive street patterns and gateways,
and identifying features in exchange for smaller lots and narrower streets.
An example of such a successful, small lot environment is
Great Bend's Fair Haven Addition (McBride and Russell Parkways between Odell
and Washington Streets). Here, a distinctive street pattern and character
have helped a small neighborhood maintain its value.
In this component of the project:
- The city would design and implement the improvements. The
project may be developed in increments or modules. Development costs will
be incorporated into the price of the house.
HOUSE CONSTRUCTION
- Private builders will build houses on this lot, according
to specific approved designs. Small house design adapted for expansion and
including exterior features that add value and appeal to the home. These features
may include Victorian or traditional design features, porches, and other elements.
Architectural controls should be used to assure a cohesive image for houses
built by participating builders in the project.
- The Lenders Consortium provides construction financing for
the new houses. Successful development requires front-end construction of
a critical mass of affordable units. The construction loan fund described
earlier would provide builders with interim financing to build enough units
to achieve both economies of scale and generate an image for the new development.
Based on market projections, this may involve having an inventory of 4 to
6 units at any one time.
SECOND MORTGAGE FINANCING
- The city would make CDBG or HOME funds available by applying
to the Kansas Department of Commerce & Housing to provide affordable financing
for moderate income buyers. In this concept, part of the mortgage cost can
be written as a "soft-second" or deferred payment loan, paid back
upon sale of the property. Assume that the nominal cost of the house is $95,000
(incorporating purchase and infrastructure improvements). Assuming a 3% down
payment 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, up to $20,000 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 second mortgage is due on sale of the property, whenever
that occurs. These funds are then recycled back into the fund to be used for
similar purposes.
Great Bend should encourage development for middle-income
buyers by providing a mechanism for subdivision development.
One of the major obstacles to the production of middle-level
houses is the lack of a subdivision development mechanism. Yet, it is politically
difficult to subsidize subdivisions accommodating price ranges in the $110,000
to $170,000 with funds from less affluent taxpayers. We suggest an Infrastructure
Bank approach as a solution to this problem. The infrastructure banking approach
works as follows:
1.) Instead of requiring annual or semi-annual payments of
assessments, the assessments are written as a deferred second mortgage loan,
with no requirement for repayment until sale of the house. The second mortgage
is a participatory loan -that is, its value appreciates along with the value
of the house. In a $120,000 house with a $12,000 public improvement cost,
the second mortgage makes LIP 10% of the home value (or $12,000 of a total
cost of $120,000).
2.)When the house is sold (or refinanced), the infrastructure
mortgage is repaid, with a face value that represents this same proportion
of the transaction. If the house sells in the future for $150,000, the city
is repaid 10% of the sale proceeds, or $15,000.
This mechanism permits eventual payback of most of the cost
of infrastructure for middle cost homeowners.
3.) The city should also consider using somewhat narrower
streets to reduce costs. Generally, a 28-foot width is adequate on short distance,
local streets, with the possibility of a single-side parking restriction.
Private builders use these lots as they would a conventional
subdivision. The city has a variety of sites for these new developments, including
areas north of 24th Street between Harrison and McKinley; the McKinney Trust
property if available; or the area northwest of Veterans Park between K-96
and the railroad.
Great Bend should improve its rental housing stock
by emphasizing a rental rehabilitation program and encouraging new construction
at appropriate locations.
1. The city should
encourage upgrading of the rental housing stock through rehabilitation programs.
The Neighborhood Revitalization designation removes part of the disincentive
for property improvements by rebating part of the added tax value. In addition,
the city should work to establish a leveraged loan program, to encourage
rehabilitation of small rental properties. This approach leverages private
loan funds by combining them with CDBG or other public funds to produce
a below market interest rate for owners of small rental properties. Loans
in a leveraged loan program can be originated through individual lenders
or through the proposed lenders' consortium. The experience of local lenders
with home improvement loans can help expedite implementation of this program.
2. In addition,
the city should also encourage the development of quality rental development
by planning for including locational criteria and potential sites in its
current comprehensive plan update. It should then stick to those designations,
even in the face of inevitable local area opposition. On the other hand,
rental project design should respect the surrounding urban context in scale
and materials.
3. The Downtown
Development Corporation should investigate residential development on upper
levels of downtown buildings. The spaciousness of the district, as well
as its substantial retail base, creates a good opportunity for upper floor
apartments. A variety of programs can be used to finance these adaptive
reuse projects, including historic and section 42 housing tax credits, TIF,
and CDBG/HOME funds.
4. Finally, the
city should take extra steps to assure quality implementation of approved
developments For example, the Coolidge Town homes project is a good development
concept that appears threatened by poor execution.
Great Bend should use its own local human and skill
resources as a focus for an opportunity-based economic development program.
Despite opinions to -,he contrary, Great Bend is not a stagnant
economy rooted in the past. It is a diverse economy, with significant strengths
in information processing, education, health care, and manufacturing. Clearly,
attraction of people and creation of wealth and opportunity is key to the
future of Great Bend. However, we believe that the most fruitful economic
development strategies for Great bend are not found in "swinging for
the fences" in hopes of attracting a single major employer. This tends
to subject the city's economy to external forces and creates a community of
employees rather than an opportunity community. Instead, we advise looking
within Great Bend itself, supporting the growth of existing employers and
creating entrepreneurial opportunities that can retain the city's talent.
Some concepts of this strategy include:
1. Publicization of career opportunities at Great Bend's
major employers and integration of these employers into the high school and
Community College through mentoring and conditional scholarship programs.
The Medical Center maintains such a connection with the College's nursing
training program.
2. Featuring the products of Great Bend at every possible
opportunity. This can even extend to community festivals. For example,
a regional event may be organized around a "Made in Great Bend"
theme.
3. Creating an entrepreneurial development program and
fund for the purpose of creating local business opportunities. Components
of this kind of program can include an incubator building, providing affordable
space and support services for new business starts; a capitalization fund,
investing in these businesses; and a technical assistance/mentoring program,
pairing entrepreneurs with experienced business people.
4. Identify skills and talents (as early as high school),
providing support for possible unique businesses in the future. One concept
may be a Talent Search, patterned after the old Westinghouse Talent Searches,
targeted toward the school system, College, and community at large. Winners
may be supported through the entrepreneurial development program.
5. Marketing Great Bend's housing and economic development
efforts as the flip sides of a program establishing Great Bend as an Opportunity
Community.
Great Bend should develop a community marketing program
designed to promote the values of its community life and indicate that it
is "open for business" as both a place of business opportunity and
a place for new households to establish themselves.
MARKETING PROGRAM
This program should include readily available print and video
material to promote aspects of life in Great Bend. A focus of the program
should be GREAT BEND FOP, YOU!, a modern and youthful approach targeted toward
new households and establishing the city as a logical choice of both residence
and business. This information should be distributed to business prospects
and to potential residents around the region. The information should address:
1. Major community
amenities.
2. Other important
community resources, including the Country Club, the civic and church community,
and other features.
3. Housing programs
and approaches tailored to the needs of young households.
4. Major employment
and entrepreneurial opportunities.
5. A directory
of key local services and contacts.
6. A guide to
housing availability and development/ financing programs.
The purpose of the program is to demonstrate the attractions
of life in Great Bend, and communicate its welcoming message to a new generation
of residents.
COMMUNITY AMENITIES
Potential image and amenity development projects include:
1. An aquatics
facility.
2. Continuing
enhancement of Downtown Great Bend.
3. Enhancement
of community gateways and the 10th Street (US 56) corridor. This corridor
currently provides a negative visual impression of the city. Components
should include:
a. landscaping
b. establishment of a sidewalk.
c. attractive lighting.
d. thematic graphics.
e. access control.
f. sign standards
4. A circumferential
recreational trail, using the flood control corridor and the Dry Walnut
Creek corridor, linking to the existing Arkansas River Trail.
2001-2002
1. Establish the
four-step housing opportunity program, including formalizing the lenders
consortium.
2. Complete seven
additional Self-Help Housing units.
3. identify sites
for two proposed subdivisions, providing for moderate- and middle-income
housing programs. Complete design of the subdivisions.
4. Through HOI,
begin acquisition of the first acquisition/rehab/resale units.
2002-2003
- Complete improvements
on the first phases of the subdivisions. Establish the Infrastructure Bank
approach to complete infrastructure in the middle-cost development.
- Build the first
cluster of affordable units in the moderate-income subdivision.
Implement a CDBG-assisted second mortgage program for moderate-income homebuyers.
- Complete the
design of the rent-to-own program.
- Implement an
GREAT BEND FOR YOU! community marketing program.
- Design and begin TEA-21
application process for the 10th Street Corridor.
