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Study Session 4. TitlePageTemplate-HolmesRd_V3_PDFJanuary 2022 The City of Salina - Community and Development Services Department The Problem and The Plan: Since 2016 Salina has been successful in becoming the chosen expansion location of several economic develop- r { ment prospects. One Vision, a commercial airplane restora- tion company, has relocated to Salina from Sioux City, Iowa bringing 200+ new jobs and recently indicating their desire e for additional employment expansion. Schwan's and Great - Plains Manufacturing have both announced substantial ex- . pansions that will result in 635 new jobs by 2025 with Great Plains estimating another 200 new jobs between 2025 and ' 2030. Saline County and the City of Salina have supported these expansions through IRBs totaling over 300 million dollars. Additional growth in the commu- nity, supported by these new jobs and the completion of the Downtown Revitalization Project, should result in 263 new jobs in downtown. Stryten Manufacturing has indicated that they would add 110 new employees if the housing was available for their new labor force. Associated indus- tries like medical, education, retail, and entertainment will be affected by the influx of new jobs and are expected to see an increase in their own employment needs in order to meet new demands. "Salina is projecting 1,300 - 1,500 new jobs in the next 5 years; with well over half of those new jobs anticipated within the next 1-2 years.5.9 - Salina Chamber of Commerce, Jan. 2022 Due to the expansion of businesses, in January of 2021 the City began working again with RDG Planning and Design Group to update the 2015 Live Salina Housing Assessment and Strategic Plan (Housing Plan). The purpose of updating the plan has been to ensure that the community's demographics and new employment numbers are as current as possible, allowing the City to understand the projected housing need. Additionally, the City wanted the updated plan to objectively assess the housing development challenges and costs with the an- ticipation that developers would be seeking financial as- sistance or incentives in the future from the City. Results of the study show a need for over 1,500 units by 2030 with a recognition that this number is not static and will increase as additional economic development occurs. Meanwhile, our three largest industries are seeing major growth, with no signs of slowing. Staff has been in contact with multiple developers discussing the economics of various housing projects. Developers have consistently identified projects in Salina as not viable. They have indi- cated a considerable level of interest in Salina but point out but there is less risk and higher rental rates in metro markets. In response to this, the City Commission adopted a Housing Incentive Policy in July of 2021. The community has made a concerted effort of finding available funding for these issues yet, the need remains and that is the basis of our request. Details related to the com- munity's needs per Housing Plan's 10 -year Program are detailed in the following table: F10 Year Program—Minimum Required Housing *Data based on 2021 Live Salina Plan and known business expansions, any additional employer expansion will require more units. >$1,500 49 23 72 Measured Need and Identified Solutions: The Housing Plan not only lays out the specific unit numbers and housing types needed to meet the communities demand, it also identifies the approach needed to meet those specifications: • Offset the increased cost of new construction with government assistance and incentive programs. Meet the immediate demand, primarily focusing on rental housing, by both encouraging development through incen- Salina's average 5 year rate tives and ensuring that projects meet the city's overall hous- of residential construction ing goals. has been 41 units a year. Demonstrate the market for more diverse and affordable housing types in a well-designed, planned development. Make infrastructure investments where necessary to Between 2022 and 2025 direct new development in areas that take advantage of community assets and provide highly attractive and we need 346 units a year competitive living environments. U20m That is over 8x { © a m Ti more housing a year! ink MM ©amu 00 2021-2025 2026-2030 TOTAL Total Needed AMM 1,039 625 1,664 Total Owner Occupied 519 375 894 <$225,000 206 149 355 $225,000-300,000 129 93 222 $300,000-400,000 128 92 220 .$400,000 57 41 98 Total Renter Occupied 520 250 770 <$625 213 102 315 $625-1,000 181 87 269 $1,000-1,500 77 37 115 >$1,500 49 23 72 Measured Need and Identified Solutions: The Housing Plan not only lays out the specific unit numbers and housing types needed to meet the communities demand, it also identifies the approach needed to meet those specifications: • Offset the increased cost of new construction with government assistance and incentive programs. Meet the immediate demand, primarily focusing on rental housing, by both encouraging development through incen- Salina's average 5 year rate tives and ensuring that projects meet the city's overall hous- of residential construction ing goals. has been 41 units a year. Demonstrate the market for more diverse and affordable housing types in a well-designed, planned development. Make infrastructure investments where necessary to Between 2022 and 2025 direct new development in areas that take advantage of community assets and provide highly attractive and we need 346 units a year competitive living environments. U20m That is over 8x { © a m Ti more housing a year! ink MM ©amu 00 Infrastructure Investment Required: In order to increase the number of housing units in Salina, land must be development -ready. This includes land that has water, sewer, and up- graded roads able to handle the in- creased traffic and demand on ser- vices. As part of a 2021 update to the City's housing plan, large tracts of land ideal for housing were identified in order to see where clusters of fu- ture development could occur and where infrastructure investment would be the most impactful. As you can see from the map , Holmes Road has multiple properties identified. Typically, special assessments and / or benefit districts are used to help with water, sewer, and road construc- tion costs within or around new devel- opments. The special assessment or benefit district process allows the costs of the new improvements to be equally applied over a defined number of years to each parcel that benefits from the improvements. A benefit dis- trict or special assessment can add anywhere from $10,000 to $40,000 of cost to a new home. rtwUnt2*. ^'rkn'^k.c�tkw�*fVA", In order to make housing affordable many communities are looking to tools like RHID to help with the increased cost of infrastructure and its affect on home prices. However, RHID cannot be used to create the infrastructure needed to im- prove perimeter roads or get utilities to a development. Perimeter roads and their associated water and sewer infrastructure are the back bone of a residen- tial development but that type of development does not typically qualify for state or federal funding be- cause it is neither for commerce or a part of the highway system; yet they are large and expensive projects making it difficult for small and mid-size communities to make the improvements needed to induce substantial development. Without funding to address infrastructure development for housing, Salina will continue to experience a "log jam" in the development process. Salina has property that could be used to develop much needed housing yet developers are not building in Salina because the cost to the buyers are too high and the delay in project construction related to infrastructure development is too long. For all these reasons, Holmes Road is a necessary infrastructure investment to direct new developments and create more housing. The Project Area: 0 • Approximately 3 miles of dirt road flank- ing the Eastern most border of the City. • Public water and sewer are not available. • Centrally located, this portion of Holmes Road intersects with Country Club Road to the North and Magnolia Road to the South. • Magnolia and Crawford are both major east -west collectors in the City. 1,264 acres of new available land Like many Kansas communities, Salina has been looking to grow and working to manage our infra- structure proactively. However, without the people there are no tax dollars and without tax dollars there are no sizable and visionary road project like Holmes Road. Today, with Salina being home to two of the largest industrial expansions in state's history and an antici- pated 1,500 new employees, the growth is happen- ing and we need to act. The intersection of Crawford and Magnolia pre- sents 783 acres of developable ground. o_ I � � CL • Approximately 3 miles of dirt road flank- ing the Eastern most border of the City. • Public water and sewer are not available. • Centrally located, this portion of Holmes Road intersects with Country Club Road to the North and Magnolia Road to the South. • Magnolia and Crawford are both major east -west collectors in the City. 1,264 acres of new available land Like many Kansas communities, Salina has been looking to grow and working to manage our infra- structure proactively. However, without the people there are no tax dollars and without tax dollars there are no sizable and visionary road project like Holmes Road. Today, with Salina being home to two of the largest industrial expansions in state's history and an antici- pated 1,500 new employees, the growth is happen- ing and we need to act. The intersection of Crawford and Magnolia pre- sents 783 acres of developable ground. The Numbers: Road Design and Construction Item Description Quantity Unit Cost/Unit Total Contractor Construction Staking 1 LS $56,000.00 $56,000.00 Mobilization 1 LS $200,000.00 $200,000.00 Removal of Existing Struc- tures 1 LS $15,000.00 $15,000.00 Clearing and Grubbing 1 LS $10,000.00 $10,000.00 Common Excavation 8,800 CY $15.00 $132,000.00 Compaction of Earthwork (Type AA)(MR-3-3) 97 CY $6.00 $582.00 Compaction of Earthwork (Type B)(MR-90) 1,435 CY $4.00 $5,740.00 Pavement HMA (10.5") (SR 9.5A PG 58-28) 12,058 Ton $115.00 $1,386,670.00 Shoulders HMA (6") (SR 9.5A PG 58-28) 1,914 Ton $115.00 $220,110.00 Subgrade Modification (6") 25,227 SY $12.00 $302,724.00 Curb & gutter 10,560 LF $25.00 $264,000.00 Curb inlet 24 Ea $12,000.00 $288,000.00 Storm pipe, 24" RCP 1,000 Ea $100.00 $100,000.00 Cross -Road Pipe (30") (RCP) 70 LF $120.00 $8,400.00 End Section (30")(RCP) 2 Ea $2,500.00 $5,000.00 Sidewalk Construction (4") (AE) 2,933 SY $50.00 $146,650.00 Multi -modal Trail, 10 ft. (5") (AE) 5,867 SY $60.00 $352,020.00 Reinforced Concrete Box (Triple 4'x 8') 70 LF $3,000.00 $210,000.00 Handrail 50 LF $320.00 $16,000.00 Temporary Seeding 1 LS $12,000.00 $12,000.00 Soil Erosion Mix 1 LS $10,000.00 $10,000.00 Silt Fence 100 LF $1.25 $125.00 Biodegradable Log (12") 100 LF $4.85 $485.00 Erosion Control (Class 11) (Type E) 18,187 SY $2.60 $47,286.20 Erosion Control (Class 1) (Type C) 250 SY $2.60 $650.00 Seeding 1 LS $20,000.00 $20,000.00 Traffic Control 1 LS $30,000.00 $30,000.00 Pavement Marking 1 LS $15,000.00 $15,000.00 Lighting Conduit (CID) 5,280 LF $30.00 $158,400.00 Subtotal $4,012,842.20 Contingencies (30%) $1,203,852.66 Total $5,216,694.86 Length/ft 5,280 Cost/ft $988.01 Total Road: 5.2 million The Numbers: Water and Sewer Water: 4.3 Million • Assumes mainly 16" line with some 20" line • 22,480 linear feet total • 30% of construction cost for engineer design/ construction Sewer: 1.3 Million • Assumes a 12" line • 5,7000 Linear feet total • 30% of construction cost for engineer design/ construction TOTAL Water & Sewer: 5.6 Million The Ask: X10.$ million '� .. -� ✓7.41 - -� _� ---,,yam•. ...y � . The City of Salina is seeking funding for three miles of Holmes Road running North/South from Country Club Road to Magnolia Road. The funding would provide water and sewer access to all properties adjacent to the road . Funding would also upgrade the road from dirt to interim standard with possible curb and gutter if funding allows. Why: Salina needs over 1,600 units of housing of all product types and at all price points by 2030. Any additional economic development prospects will only further this need. In response, a 10 year housing development program was drafted as a part of a 2021 update to the City's housing plan. Support of this project will: • Create 1, 264 new acres of developable land for housing • Speed up the development process by creating development -ready properties • Keep housing affordable by removing benefit district costs • Allow for better design and maintenance of infrastructure because of a comprehensive approach 9 Provide funding for a project that does not qualify for typical state or federal programs