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Res 2869 10/20/1981RESOLUTION NO. 11‘9 RESOLUTION DESIGNATING CENSUS ENUMERATION DISTRICTS 72 THROUGH 82 AND 59 AS A BLIGHTED AREA AND REQUEST- ING THAT THE TEXAS INDUSTRIAL COMMISSION ACCEPT THE BLIGHTED AREA AS ELIGIBLE FOR COMMERCIAL PROJECTS. WHEREAS, Census Enumeration Districts, 72 through 82 and 59 compose the area, within central Wichita Falls, which is bounded by the Big Wichita River from Brook Avenue northeast to Patterson Street; south on Patterson Street to Sixth Street; west on Sixth Street to Eastside Drive; south on Eastside Drive to Seventh Street;west on Seventh Street to the Fort Worth & Denver Railroad tracks; south along the Fort Worth & Denver Railroad tracks to the Missouri, Kansas & Texas Railroad spur; southwest along the Missouri, Kansas & Texas Railroad spur to Kell Boulevard; west on Kell Boulevard to Brook Avenue; and north on Brook Avenue to the Big Wichita River (see map in attached study) . WHEREAS, the attached study contains detailed findings which show that Census Enumeration Districts 72 through 82 and 50 contain a substantial number of substandard, deteriorating and deteriorated structures; suffer from a high relative rate of unemployment; and contain social and economic liabilities causing the arrest of sound economic growth within the central area. WHEREAS, an overall objective of Wichita Falls is the redevelopment of the central area, including Census Enumeration Districts 72 through 82 and 59, through public/private partnership and related financial technique. WHEREAS, the availability of financing projects for conuuercial use, within Census Enumeration Districts 72 through 82 and 59, will serve to increase employment opportunities, increase the property tax base, promote commerce, generate income for residents and businesses, complement existing and planned projects, and stabilize the central area economy. WHEREAS, projects for commercial use, within Census Enumeration Districts 72 through 82 and 59, will be limited to construction or rehabilitation of hotel, motel, retail, wholesale, office and speciality establishments as well as light industry (such as car repair shops, electrical shops, cobbler shops, cottage industries, etc.) which conform with the commercial/residential character of the central area. WHEREAS, the City of Wichita Falls has complied with regulatory standards of Rules for Issuing Industrial Revenue Bonds and the requirements of the Develop- ment Corporation Act of 1979, as amended, as related to commercial projects in blighted or economically depressed areas. 2- WHEREAS, the outcome of required public hearing resulted in no opposition to designation of Census Enumeration Districts 72 through 82 and 59 as a blighted area. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS, THAT: Pursuant to Rules for Issuing Industrial Revenue Bonds, from the Texas Industrial Commission, projected public improvements tote made in Census Enumeration Districts 72 through 82 and 59 include: Historical District development (in progress, due to be completed in 1983; Community Development Block Grant (CDBG) funded) , Midtown Manor construction, a 150-unit Section 8 subsidized, multi- family structure (in progress, due to be completed in early 1982; CDBG funded) , Parking lot construction and mini-park beautification, near the CBD (due to begin January 1982 and to be completed September 1982; CDBG funded) , Wichita River Greenbelt development (in progress, due to be completed in 1985; CDBG/Heritage Conservation & Recreation Service matched funding, Burnett Street Bridge reconstruction (due to begin in 1982 and to be completed in 1983; County, State and CDBG funded) , Sodium vapor street lighting approximately 30 blocks (due to begin October 1981 and be completed in April 1982; CDBG funded) , Bellevue Park redevelopment (due to begin in October 1981 and be completed in September 1982; CDBG funded) , Senior Citizens parking lot paving (in progress and to be completed in September 1982; CDBG funded) . The Wichita Falls Board of Aldermen will review all project descriptions for approval of specific projects in order to determine whether such projects are consistent with objectives for redevelopment of Census Enumeration Districts 72 through 82 and 59. Census Enumeration Districts 72 through 82 and 59 (combined) are herein designated as a blighted area by the City of Wichita Falls and that the Texas Industrial Commission is requested to accept the blighted area for commercial projects. 3- PASSED AND APPROVED THIS Yeti:day of 4"--41444.4.2 1981. MAYOR ATTEST: jr--424/1-144C CITY CLERK 1 . v. V• t iV 1 C''PROPOSED SLIGHTED AREA DESIGNATION Ai it aisik 77 L t H SEPTCABER 1981 Page 5 of 13 Pages 4i WICIIITA FALLS, TEY,AS Agenda Item k w ' K NTC/)lx)Ji0N Blighted areas, according to the Development Corporation Act of 1979, as U amended, are "these areas and areas immediately adjacent thereto within a city which by reason of the presence of a substantial number of substandard, slum, • U deteriorated, or deteriorating structures, or which suffer from a high relative rate of unemployment, or which have been designated and included in a tax incremental district . . ' , or any combination of the foregoing. . . (which) substanti- ally 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 condition and use." Based on this definition several areas within central Wichita Ui y U' Falls qualify as blighted areas. Enumeration Districts (E.D. ) 72, 73, 74, 75, 76, ^ 77, 78, 79, 80, 81, 82, and 59 include the following blighted elements: I A substantial number of substandard and deteriorating structures, A high relative rate of unemployment, K Areas of decline and deterioration which create economic and social U liability and arrest sound growth. I. LA0D USE SUMMARY i: A windshield survey of E.D.s 72-82 and 59, which includes the Central Business District, and the majority of Census Tracts 101, 102 and 103 indicates a significant ^" number of vacant and deteriorating mixed residential and commercial uses. Some ` u L.institucional and vacant land uses are also evident in the area. Table A _ LAND USE COMPOSITION ENUMERATION DISTRICTS U 72 73 74 75 76 77 78 79 80 81 82 59 Land Use K Commercial 81 47 29 31 11 49 43 62 16 4 7 11 Institutional 2 39 46 11 14 2 21 22 9 1 9 Residential 9 8 15 41 68 38 18 16 71 95 85 41 Vacant 8 6 10 17 7 11 16 4 1 7 28 U Industrial 11 Source: Wichita Falls, Planning Department, 1981 Page 6 of 13 Pages Agenda Item No. lO.a. i i• I CENSUS TRACTS I,'i, ,' i • . 1 q, A.3.4+- 1,11 ' ', . i 4 -;;;[-1,1-1-: ir. 1 --1 1 1 s' 'i 1; :i c:!,1:.•...J.11.:::1:1 '• !.,--..77 H.:,--:--•-,-j! ' u,"-- c,!.'7.-.7c, 7.-.1..-± -il- , .,.._ \ p ,--;,,... •I \ )4-2,1;•? 1I 1 i-7 1 i 1: iIsi 1 ll i--:-'-',C.7--r.t•-% ---'="...,-"*..- ,...„ '5t \- N',. ri:•---":-.-.--'1-t•13 '-c .1',..t-,-1 ' .,'••••• ,.., s . ././ 1L' 1 — 4----' I, •.. . 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' HOUSING The housing; within E.D.s 72-`2 and 59 was recently surveyed usin_, the Te::as 1.1 Pictora1 'le.thod of Darn Inventory. Table B shows the i , cult. of the ,;,tr.'.o.:. Table B HOUSING CONDITION STANDARD DETERIORATING DILAPIDATED i Housin7 Structures 32 57 11 E.D.s 72-82 , 59 7 Source: City of Wichita Falls, Planning Department, 1981 Housing classifications are defined below: Standard - No maintenance/repair problems or defects in structure. Deteriorating - Considerable damage to building elements (such as doors, windows, siding, etc. ) with potential damage to major structural items (such as roof, walls, foundation, etc. ) . Dilapidated - Major deterioration among the majority of building elements with major damage to structural items. Repair to housing of this type is economically infeasible. The large number of, deteriorating and dilapidated housing units is basic to qualification of the area as blighted. Age of housing units is another important factor when evaluating housing stock conditions. The lack of technological innovation in design and construction I. materials, as well as energy efficiency, generally makes older homes uneconomical and harder to maintain. A large portion of the housing units in E.D.s 72-82 and 59 was built over 40 years ago (see Table C) and is for reasons mentioned earlier difficult to maintain. Much of the older housing may, therefore, be deteriorating. Table C AGE OF HOUSING STOCK ENUMERATION DISTRICTS HOUSING l- UNIT AGE 72 73 74 75 76 77 78 79 80 81 82 59 i 0-15 0 0 0 0 1.9 1. 3 0 0 0 0 0 2.3 16-20 2.8 0 0 11.9 0 0 0 0 0 0 0 6. 5 21-30 16.9 22.6 2. 7 0 1.3 3.9 0 14.0 0 1.1 18.0 0 31-40 49.8 16.1 61.8 7.8 7. 7 0 1i.5 r)6. 1 8.7 37.7 30.4 32.6 41 and over 30.5 61.3 35. 5 80.3 89. 1 94.8 85.5 29. 9 91. 3 61.2 51.6 58.6 Source: U.S. Census, 1970 Page 9 of 13 Pages Agenda Item No.10.a. i ' Housing vacjllu': rate and owner/renIal eccup;Ine? r;Ill's are .inperiaaL LO evaluating the viability and stage of a nei,4hborhood. High owner occupancy rates 1 indicate a desirable and economically prosperous residential area. High renter occupancy rates generally indicate a transitional neighborhood with poorly maia- tamed properties which are being held speculatively. Table D indicates that 1 E.D.s 72-82 and 59 are in transition with a high renter occupancy rate and a high number of vacant units. I Table D OCCUPANCY/VACANCY RATES ENUMERATION DISTRICTS OF E- 72 73 74 75 76 77 78 79 80 81 82 59 Owner Occupied 9.1 6.6 5 16.4 33.9 27. 2 24.5 73.6 52.0 38.1 48.1 40.7 I Renter Occupied 49.4 72.2 85 63.9 43.9 54.0 62.0 17.5 34.8 47.3 37. 1 48.8 Vacant 41.5 21.2 10 19.7 22.2 18.8 13.5 8. 9 13.2 14.5 14.8 10.5 I_ Source: U.S. Census, 1970 C0?L^1ERCIAL ACTIVITY I . Commercial uses cover an average of 36% of the lots in E.D.s 72-82 and 59 (see within' l '1 the Central BusinessTableA) . The major concentration of commercial use is w District (CBD) (included in the study area) . Many of the business structures and lots are deteriorating, vacant, or both. This fact interrelates with recent tax values. . . Table E displays comparative tax valuations for the City and the CBD during the period L 1970 through 1980. It is important to note that while the City as a whole experienced 144% increase in tax valuation, that the CBD "marked time" with only a 4% increase in tax valuation. Table E TAX VALUATION 1970 1980 INCREASE CBD 34, 583,445 35,981 ,005 4% 1 CITY 508,801 ,880 1 ,'241,998,642 1447,, Source: City of Wichita Falls, Tax Department, 1980 C i Page 10 of 13 Pages Agenda Item No. 10.a; 5- Another indicator of economic activity F:ithin I)l1`; '1r :- s n.1 c,::':;:e_rcial sectors is retail sales amounts. Table F displ.).'.; the {or:; oI rotaH in ( ii: CM while the CiLv, as a whole including other commercial centers) . C::perienced a dramatic increase in retail sales. Table F RETAIL SALES I 1972 1977 CBD 66,133,000 60,532,000 CITY 251,285,000 476,210,000' Source: U.S. Department of Commerce, 1977 SMSA Data: City data unavailable Additionally, during the period 1972-1977, the CBD lost 69 of its retail establishments. The figure amounts to 37% of the 1972 retail level. POPULATION The composition of q population says much about the type and intensity of . activity taking place in an area. The figures in Table G display a large percent of families living in E.D.s 72-82 and 59 earning below 80% of median income 6,350) . Table G OF FAMILIES EARNING BELOW 80% OF MEDIAN INCOME ENUMERATION DISTRICTS 72 73 74 75 76 77 78 79 80 81 82 59 81 83 55 57 62 85 74 78 65 47 46 76 Source: U.S. Census, 1970 In addition to having a high portion of low income families , the study area maintains a high unemployment rate, another basic to qualification as a blighted area. The unemployment rate in Census Tract 101 (which is composed of E.D.s 72-76) is 6.8%. The unemployment rate of Census Tract 102 (which includes E.D.s 77 and 82) is 4 .9%. The unemployment rate for Census Tract 103 (which includes Page 11 of 13 Paces Agenda Item No. 1O.a• E.D. 59) is 6%. All of these figures (from the Texas Cmp(ovmeuc Commission) Jis»Lzv the relatively high levels of unemployment in Census Tracts 101 , 102 and 103 as compared to the SMSA. Clearly, the most significant population characteristic linked to the viuuility of an area is population growth. Table B indicates that Census Tracts 101 , 102 and K U 103 are not growing, they are declining. Table H POPULATION CENSUS TRACT 1970 1980 101 2,006 1,5I6 102 2,854 2, 273 103 2,737 1,045 Source: U.S. Census, 1980 SUIQ&\RI Cnumacatioo Diacrian 72 - 82 and 59 are blighted areas having a substantial u number of substandard and deteriorating structures, a high relative rate of unemploy- U neot, and decline and deterioration factors which are economic and social liabilities K and arrest the sound growth of Wichita Falls. Blight is evidenced in the following areas: HOUSING 68% of the structures are deteriorating or dilapided A majority of housing is over 40 years old.K A high renter occupancy rate combined with a high vacancy rate is evident in the area. COMMERCIAL ACTIVITY A significant portion of CBD businesses are deteriorating or vacant. Land values in the CBD have stagnated. CBD has recently lost substantial amount of retail sales and retail establishments. Page 12 of 13 Pages Agenda Item No. l0.o' 7- POPULATION 1 A high composition of families earning less than 80% of the median income reside within the area. Relative unemployment rates are high compared to the SMSA. 17 Census Tracts 101, 102 and 103 have lost 25% of their combined population since 1970. I- Although directly observable trends are important in the analysis of blight, interrelationships between trends must be addressed by efforts to redevelop these 01 L areas. Complex interactions between low income population; underemployment; aged, Ideteriorating housing stock; and withering commercial activity within blighted r areas require a renewed public/private commitment. One method of leveraging public/private commitment is through the use of Industrial Revenue Bonds (IRBs) as financing tools. 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-rule city or a Federally designated economically depressed county of less than 50,000 persons." IRBs are used within 46 states allowing the "users" of the bonds or facilities financed by Lthe 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 function- alities and advantages of IRBs make them attractive as an implementation tool for the public/private redevelopment of Enumeration Districts 72 through 82 and 59. Page f P Agenda 13 Itoem 13 No. ages 10.a.4