Res 071-84 4/17/1984RESOLUTION NO. 7/
A RESOLUTION DESIGNATING THE SCOTLAND AREA AS BLIGHTED AND
REQUESTING THE TEXAS ECONOMIC DEVELOPMENT COMMISSION TO
ACCEPT THE BLIGHTED AREA AS ELIGIBLE FOR COMMERCIAL PROJECTS
WHEREAS, an area hereinafter called the Scotland area is located within
the City of Wichita Falls and is described as follows (see map in attached study) :
BEGINNING at the intersection on the east right-of-way line of
US 287 and the south bank of the Big Wichita River;
THENCE westerly and northerly following the south and west bank of
the Big Wichita River to the most northern point in Lucy Park, a public
park in the City of Wichita Falls, Texas;
THENCE north to the north right-of-way line of the Ft. Worth and Denver
Railroad;
THENCE easterly to the east right-of-way line of US-287;
THENCE southerly along said east right-of-way line to the place of
beginning; and,
WHEREAS, the attached study contains detailed findings which show that
the Scotland Area contains a substantial number of substandard, deteriorating, and
deteriorated structures and suffers from a high relative rate of unemployment; these
conditions impairing the sound growth of the city and constituting economic and
social liabilities; and,
WHEREAS, the overall objectives of the City of Wichita Falls include
encouraging development and redevelopment of the urban core and development of the
Wichita River Greenbelt; and,
WHEREAS, the availability of financing of projects for commercial uses
under the Development Corporation Act of 1979 (Article 5190.6 Vernon's Texas Civil
Statutes, as amended) will contribute significantly to the alleviation of the
blighted conditions found to exist in the Scotland Area; and,
WHEREAS, projects for commercial use will be projects compatible with
existing development in the Scotland Area and limited by the conditions and criteria
listed in the attached study; and,
WHEREAS, the City Council of the City of Wichita Falls, Texas will review
all project descriptions for approval of specific projects for commercial uses in
order to determine whether such projects are consistent with the city's objectives
for redevelopment of the Scotland Area; and,
2-
WHEREAS, the attached study describes planned public expenditures in
the area.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
WICHITA FALLS, TEXAS, THAT:
The Scotland Area is hereby designated as a blighted area by the City of
Wichita Falls and that the Texas Economic Development Commission is requested to
accept the blighted area for commercial projects in accordance with the provisions
of the Development Corporation Act of 1979 as amended and the administrative rules
and regulations adopted under its authority.
PASSED AND APPROVED THIS THE /7t(//7t(/ day of L.„ .& 1984.
641°"'
r
Ll _ i ... c
10.
111.V MAYOR
ATTEST:
CITY CLERK
4
ANALYSIS OF PROPOSED SCOTLAND BLIGHTED AREA
SUMMARY
The area shown on Map 1 has been nominated for designation as a blighted area.
Analysis of the area indicates that Blighted Area designation is justified. The
area suffers from a relatively high unemployment rate, and has a substantial number
of deteriorated or deteriorating structures. These conditions impair the sound
growth of the city and constitute an economic and social liability.
INTRODUCTION
When an area is declared a "Blighted Area," certain types of businesses become
eligible to use Industrial Revenue Bonds (IRB) for financing. Created by an act of
the Texas Legislature, the Development Corporation Act of 1979 allows the issuance
of IRBs by development corporations within "blighted or economically depressed areas
or Federally assisted new communities within a home-city or a Federally designated
economically depressed county of less than 50,0000 persons." IRBs are used within
46 states allowing the "users" of the bonds or facilities financed by the bonds to
pay interest rates which are normally less than prime lending rates. Additionally,
buyers of IRBs pay no income tax on interest earned. The advantages of IRBs make
them attractive as an implementation tool for the public/private redevelopment of
blighted areas.
Blighted areas, according to the Development Corporation Act of 1979, as
amended, are "those areas and areas immediately adjacent thereto within a city
which by reason of the presence of a substantial number of substandard, slum,
deteriorated, or deteriorating structures, or which suffer from a high relative
rate of unemployment, or which have been designated and included in a tax incre-
mental district. . . , or any combination of the foregoing. . . (which) substantially
impair or arrest the sound growth of the city, or constitute an economic or social
liability and/or menace to public health, safety, or welfare in the present condi-
tion and use."
The best available data has been used in this report. The populated portion
of the area is located in Census Tract 112, Planning Sector 14. The City of
Wichita Falls participates in the U.S. Census Bureau's Neighborhood Statistics
Program, and has designated the area as the Scotland Neighborhood. No people reside
in the western portion of the proposed blighted area which is located in Census
Tract 129, Planning Sector 11. Functionally, the western portion of the proposed
blighted area is closely linked to the Scotland Area due to highway linkages and
traffic patterns. Therefore, only data from the Scotland Neighborhood, Census
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Proposed Blighted Area
APPROVED BLIGHTED AREA
2-
Tract 112, and Planning Sector 14 is used in this report.
Area Description
The Scotland Area is predominantly residential, with most homes built prior
to 1950. Broadway, North 3rd Street, and North Burnett Street form a commercial
strip through the center of the residential area. Most vacant areas are along
the Big Wichita River.
Dominant features in the area include US-287 (to be designated I-44), the Big
Wichita River, the open areas between the river and the highway, and Scotland Park.
The area does have potential development assets. The proposed Wichita River
Greenbelt Project will benefit the area. The designation of US-287 as an inter-
state highway will make the area more attractive to investors. The recent comple-
tion of the Burnett Street bridge has provided much better access to the midtown,
enhancing the residential quality of the area and improving commercial opportunities.
Recent updates of floodplain information suggest that flooding problems are not as
severe as previously thought, and development is feasible if proper engineering
practices are observed.
CRITERIA 1: HOUSING
The Scotland area meets the first criteria for a blighted area: the presence
of a substantial number of substandard, slum, deteriorated, or deteriorating struc-
tures. The condition of the housing stock in this area is substantially below the
city-wide average.
A Housing Condition Survey made by the Planning Department (1980-81) indicated
that approximately 98% of the area's housing structures were either classified as
deteriorating or dilapidated. This is a significant number and is central to illus-
trating that this area of the City is blighted.
Figure A
HOUSING CONDITION
PLANNING SECTOR 14
Deteri-
Standard orating Dilapidated
Sector's percentage of housing structures 2% 85% 13%
City-wide average percentage 78% 18% 4%
Source: City of Wichita Falls, Planning Department, 1981
Methodology: The housing condition survey was conducted in the fall and
winter of 1980-81. Texas Pictoral Standards were used to grade the City's
housing condition. Standard indicates a structurally sound house; Deteriorating
indicates a house structurally sound but needing repair; Dilapidated indicates
a house that is not structurally sound and lacks plumbing or electricity.
3-
Housing values suggest that housing quality is far below the city average.
The median value of owner occupied units is $11,300 in the Scotland Neighborhood,
far below the city median of $32,700. 90% of the owner occupied units in the
area are below the city-wide median value. 43% of the unitsnis in the Scotland
Neighborhood have values below $10,000.
cij_J €= o,i^ ',+`• n e r 0cCupled H0 Ina
S;•;otIl rld :irC•;,] .s City- t
40%
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In tfi^'lBaildE
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4-
CRITERIA 2:
UNEMPLOThENT
hted area because it
The Scotland area meets the second criteria as According to the most recent
suffers from a high relative rate of
available
data, the Census Tract 112, which contains the Scotland area,
has an
which is 200% of the city-wide rate and 190% of the rate for the
unemployment rate w
State of Texas.
Figure C
UNEMPLOYMENT RATE FOR JANUARY, 1984
Rate
Census Tract 112 14.0%
City of Wichita Falls 7.0%
State of Texas
pattern of severe
unemployment
in
An examination
of 1980 census indicates
a
pmen. Women in the Scotland Neigh-
borhood
Scotland
Neighborhood,
particularly among
ed for an average of 24 weeks in 1979,
compared
with an
borhood were unemployed
average of only 10 weeks for women in the rest of the community.
Figure D
City
Scotland
Unemployed 15 or more weeks in 1979
4.3% 7.0%
Mean weeks
unemployed in 1979
10 24
Female 11 9
Male
i
to ment
problems in the
Income levels reported in the
1980mselsu$
4
reflect
which is 57% of the city level.
capita
income
level, compared
Scotland
Neighborhood. Per cap'
poverty
28% of the people in the Scotland Neighborhood are below the p
with 13% in the city•
problems
which may be partially
responsible
The 1980 census also reveals some p
roblems in the area. The Scotland
Neighborhood
has
eshe
lowest
for employment p only 27% of t
high school
graduates in the city
over
percentag e of hig
T
the age of 24 are high school
graduates) .
The inability to travel to work may also
hi h unemployment
rate. 17% of the
households do not have a
be a factor in the g
5-
vehicle available, compared with 6% city-wide. Mass transit service is available
in the Scotland area, but the system does notY provide adequate service to many of
the potential employment opportunities in the community.
RESULTING GROWTH IMPAIRMENT
In order to qualify as a blighted area, the City must determine that the conditions
of unemployment and/or deteriorated structures "substantially impair or arrest the
the sound growth of the city, or constitute an economic or social liability and/
or menace to public health, safety or welfare in the present condition or use."
Very little new development has occurred in the last 20 years. The City of
Wichita Falls recognizes that continuing maintenance and redevelopment of the urban
core are essential to the sound and orderly development of the city.
Development constraints are not severe enough to explain the current lack of
new development in the area. It appears that the high unemployment and deteriorated
condition of existing structures are responsible for the stagnant development,
and that these conditions impair the orderly development of the city.
The chronically high unemployment rate and poverty in this area create eco-
nomic and social liabilities for the city.
Benefits of the Availability of IRB Financing
The City of Wichita Falls has actively promoted the development of the Wichita
River Greenbelt Project in order to strengthen the urban core. The city is pur-
suing a strategy of attracting private investment into the area. A portion of the
Greenbelt project is already eligible for IRB financing. Designation of the Scotland
Area as blighted will allow the use of IRB financing for commercially attractive
areas which are essential to the success of the Greenbelt.
Public Projects
Phase I of the Wichita River Greenbelt project is currently in progress. This
phase includes improvements to Lucy Park (adjacent to the area) and the develop-
ment of an RV park within the proposed blighted area. Completion of Phase I is
expected in May, 1984. The scheduling of future phases of the project is dependent
on available funding.
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PROJECT APPROVAL CRITERIA
Industrial Revenue Bonds are a form of public subsidy. Therefore, projects
using IRB funds should serve the public interest. The following criteria should
be used when reviewing IRB projects in the Scotland area.
1. The project should avoid displacement of area residents. When displacement
is unavoidable, a reasonable effort should be made to assist the displaced persons
and mitigate any hardships involved.
2. The project should not have a significant negative impact on existing
residential areas. Development near residential areas should include buffering and
screening. ITO project shall be approved if the parcel of land on which the project
is to be located is limited by deed restrictions to residential purposes. No
project shall be approved if the proposed use would constitute a violation of the
deed restrictions placed upon said parcel.
3. The project should comply with the Wichita Falls Flood Plain Ordinance No.
3282. Projects with large amounts of runoff should use storm water detention or
other methods to reduce peak flood volumes.
4. The project should be compatible with other projects in the area.
5. The project should support the development of the Wichita River Greenbelt.
6. Projects are especially desirable if they will provide employment oppor-
tunities for women, non-high school graduates, persons who do not have vehicles
available, or jobs meeting other particular employment needs of the area.