The Raytown Area CHAT Report Aquila Community Housing Assessment Team Martin H. Shukert, AICP

1. The Raytown Area CHAT Report Aquila Community Housing Assessment Team Martin H. Shukert, AICP Mark Dawson October 9, 2002

2. Population ChangeRaytown • Raytown’s population has steadily declined since the 1970s. The city experienced an over all decrease of 0.6% over the last ten years. • The largest increase in population took place during the 1960s when the city’s total population increased by 16,223 persons. • During the 1990s, Raytown’s population decreased by 213 people. However, the city added 347 units between 1991 and 2001. • Raytown saw the largest decrease among those 25 to 29 and 60 to 64. Overall, these two cohorts experienced a decline of 1,227 persons between 1990 and 2000. Source: US Census, RDG Crose Gardner Shukert

3. Population ChangeRaytown Source: US Census, RDG Crose Gardner Shukert

4. Housing Construction1991-2001 • During the last five years, the area has developed 209 new units. • Development slowed during the mid-1990s before rebounding to a decade high of 70 units in 1999. • Since 1991, Raytown has developed 180 single-family and 167 multi-family units have been built, a total of 347 units or about 35 annually. • Single-family construction has been highly cyclical, probably related to lot availability. Source: City of Raytown

5. Occupancy Changes and Impact on Existing Housing Stock1990-2000 • Based on comparing census 2000 housing counts and construction rates, about 191 units of Raytown’s 1990 housing stock (or about 1.44%) left the housing market during the 1990s. • About 160 units that were owner-occupied in 1990 (or about 1.7%) were either lost or converted to renter occupancy during the 1990s. This suggests something of a trend toward renter-occupancy among the city’s older houses. Source: City of Raytown, Census 2000

6. Changes in Home Sales Prices 1997-2002 • Home prices in Raytown have increased steadily (25.6% since 1997), but remain relatively affordable. • The % of very low cost homes (below $75,000) has been more than reduced by half since 1997. • The market for houses above $100,000 has also slowly increased during the last six years. Source: Multiple Listing Service

7. Housing Resources and Assets • Community Identification • Housing Opportunity • Location and Market Demand • School System • Appealing Environment • Substantial Development Community • A Town Center • Planning Foundation • Leadership and Commitment

8. Community Identifcation • Community Identification • Housing Opportunity • Location and Market Demand • School System • Appealing Environment • Substantial Development Community • A Town Center • Planning Foundation • Leadership and Commitment R aytown has a strong and distinct sense of community and a high degree of mutual identification. Many residents are in town for the duration. Even those who move away still retain an element of a Raytown identity.

9. Housing Opportunity • Community Identification • Housing Opportunity • Location and Market Demand • School System • Appealing Environment • Substantial Development Community • A Town Center • Planning Foundation • Leadership and Commitment D espite a somewhat negative reputation, Raytown’s housing stock is fundamentally sound and is affordable to entry-level homeowners, allowing people to invest equity in the community as they begin to form their families. Steady but moderate appreciation helps secure this investment.

10. Location and Market Demand • Community Identification • Housing Opportunity • Location and Market Demand • School System • Appealing Environment • Substantial Development Community • A Town Center • Planning Foundation • Leadership and Commitment R aytown enjoys a strategic location, convenient to most of the metropolitan area’s employment centers and attractions. Kansas City, the Kansas suburbs, and Lee’s Summit are all highly accessible, creating a strong potential demand for housing in Raytown.

11. School System • Community Identification • Housing Opportunity • Location and Market Demand • School System • Appealing Environment • Substantial Development Community • A Town Center • Planning Foundation • Leadership and Commitment R aytown’s school system is highly regarded and is a major attraction of families to the community. This gives Raytown the ability to attract a new generation of families. However, Raytown competes with parts of the district within Kansas City’s corporate limits.

12. Appealing Environment • Community Identification • Housing Opportunity • Location and Market Demand • School System • Appealing Environment • Substantial Development Community • A Town Center • Planning Foundation • Leadership and Commitment R aytown has an attractive physical environment, characterized by mature trees and varied topography, helping to define distinct neighborhoods. These features give parts of Raytown an almost rural quality – a sense of space within a large city. While low density is a challenge for a landlocked inner suburb, it is also a lifestyle asset for many owners.

13. Substantial Development Community • Community Identification • Housing Opportunity • Location and Market Demand • School System • Appealing Environment • Substantial Development Community • A Town Center • Planning Foundation • Leadership and Commitment R aytown has a strong community of builders and developers, who take advantage of limited land availability. Construction has grown in recent years, and tends to expand with increases in lot supply. Developments such as Golfview Villas, Villa Woods, and Jessica Estates are excellent projects that evidence a commitment to quality. Kansas City’s “boutique” industry of small homebuilders is well suited to capitalize on Raytown’s potential opportunities.

14. Town Center • Community Identification • Housing Opportunity • Location and Market Demand • School System • Appealing Environment • Substantial Development Community • A Town Center • Planning Foundation • Leadership and Commitment A lthough not beautiful, Raytown does have a distinct business center that boasts a reasonable variety of basic businesses. This differs from many other suburbs that developed at the same time, which lack any commercial concentration other than old strips. The center provides Raytown with an important image-building and development opportunity.

15. Planning Foundation • Community Identification • Housing Opportunity • Location and Market Demand • School System • Appealing Environment • Substantial Development Community • A Town Center • Planning Foundation • Leadership and Commitment R aytown has gone through a careful and methodical planning process, giving the city a foundation from which to build an implementation program. This process includes a new comprehensive plan, downtown plan, and a community futuring process, all developed with a high degree of community consensus-building.

16. Leadership and Commitment • Community Identification • Housing Opportunity • Location and Market Demand • School System • Appealing Environment • Substantial Development Community • A Town Center • Planning Foundation • Leadership and Commitment T he leadership “stars” appear to be aligned in Raytown, partially attributable to the careful and participatory nature of the city’s planning. The City Council appears ready to act on several fronts, including downtown development. Most impressively, a strong cadre of community leadership has emerged, motivated by a strong commitment to the future of Raytown.

17. Strategic Issues and Opportunities • Homogeneous Housing Stock • The Equity Ceiling • Sense of Place and Image • Changing Population and the Next Generation • Neighborhood Conservation • Land Availability and Room to Grow • Inefficient Land Use • Community Divisions • Downtown Development • Local Organizational Capacity

18. Homogeneous Housing Stock • The Equity Ceiling • Sense of Place and Image • Changing Population and the Next Generation • Neighborhood Conservation • Land Availability and Room to Grow • Inefficient Land Use • Community Divisions • Downtown Development • Local Organizational Capacity Homogeneous Housing Stock R aytown largely developed during the 1950s and 1960s, giving it a high percentage of similar housing. Many of these units, financed by FHA and VA-guaranteed loans, were “Cape Cod” style houses, ranging from 700 to 900 square feet. The large amount of entry-level housing limits market choices offered by Raytown. In addition, this housing type sometimes fails to appeal to contemporary tastes of current first generation buyers.

19. Homogeneous Housing Stock • The Equity Ceiling • Sense of Place and Image • Changing Population and the Next Generation • Neighborhood Conservation • Land Availability and Room to Grow • Inefficient Land Use • Community Divisions • Downtown Development • Local Organizational Capacity The Equity Ceiling R aytown’s affordable housing stock helps young families invest their equity in the community. However, the lack of move-up housing can prevent people from staying in town as their needs change. As a result, Raytown may be exporting upwardly mobile, emerging leaders to surrounding areas. The city has increasingly become the “entry level” housing environment for Lee’s Summit and similar areas.

20. Homogeneous Housing Stock • The Equity Ceiling • Sense of Place and Image • Changing Population and the Next Generation • Neighborhood Conservation • Land Availability and Room to Grow • Inefficient Land Use • Community Divisions • Downtown Development • Local Organizational Capacity Sense of Place and Image R aytown has a high degree of community identity, but nevertheless lacks a strong image. It lacks the special districts, nodes, and rhythms of more traditional communities. Yet the city does have major image development opportunities, including downtown, Blue Ridge Boulevard, Ong and Wildwood Lakes, the railroad ROW, the Santa Fe Trail, and even the 350 Highway corridor.

21. Homogeneous Housing Stock • The Equity Ceiling • Sense of Place and Image • Changing Population and the Next Generation • Neighborhood Conservation • Land Availability and Room to Grow • Inefficient Land Use • Community Divisions • Downtown Development • Local Organizational Capacity Changing Population and the Next Generation A s a first-generation suburb, Raytown is aging. During the last ten years, its population over age 75 has increased by 41%, growing from 6.9% to 9.8% of the city’s population. As people age and move from their houses, a new generation of residents will take over. The ability of the city and its housing stock to attract new buyers is vital to its future. In a competitive metropolitan environment, this attraction requires sound housing, good basic services, quality education, and reasonable quality of life amenities.

22. Homogeneous Housing Stock • The Equity Ceiling • Sense of Place and Image • Changing Population and the Next Generation • Neighborhood Conservation • Land Availability and Room to Grow • Inefficient Land Use • Community Divisions • Downtown Development • Local Organizational Capacity Neighborhood Conservation B ecause much of Raytown’s housing was built at the same time, it also ages (and sometimes deteriorates) at the same time. Housing maintenance is a key challenge. Problems are intensified by a moderate, but apparent, trend toward purchase of small, formerly owner-occupied houses as rental properties. Also, many of Raytown’s neighborhoods were built to rural standards, with asphalt paving, surface drainage, and no sidewalks. Despite discussion of new development, existing housing will make up the large majority of Raytown’s supply for the foreseeable future.

23. Homogeneous Housing Stock • The Equity Ceiling • Sense of Place and Image • Changing Population and the Next Generation • Neighborhood Conservation • Land Availability and Room to Grow • Inefficient Land Use • Community Divisions • Downtown Development • Local Organizational Capacity Land Availability and Room to Grow R aytown is completely surrounded by Kansas City and, consequently, cannot grow outward. While the city has some land resources, they are scattered and are not always available for sale at a reasonable market price to prospective developers.

24. Homogeneous Housing Stock • The Equity Ceiling • Sense of Place and Image • Changing Population and the Next Generation • Neighborhood Conservation • Land Availability and Room to Grow • Inefficient Land Use • Community Divisions • Downtown Development • Local Organizational Capacity Inefficient Land Use A s a “landlocked” community, Raytown ideally should use its land to greatest efficiency. Yet, a fair amount of its land is underused. The city’s overall population density is about 3,000 people per square mile, or less than 2 units per acre, a low density for a city where residential land use is so dominant. Many of its lots are large, dating from a time when septic systems were used for wastewater disposal. In addition, a number of older commercial and industrial sites are vacant or underused.

25. Homogeneous Housing Stock • The Equity Ceiling • Sense of Place and Image • Changing Population and the Next Generation • Neighborhood Conservation • Land Availability and Room to Grow • Inefficient Land Use • Community Divisions • Downtown Development • Local Organizational Capacity Community Divides S ome observers report a north-south community divide in Raytown. This is understandable in a relatively low-density city with relatively low street connectivity, geographic barriers, and a lack of features that are tradiitonally community spaces, such as a major central park or a strong town center. In addition, the railroad and 350 Highway have tended to divide the north and south sides of town.

26. Homogeneous Housing Stock • The Equity Ceiling • Sense of Place and Image • Changing Population and the Next Generation • Neighborhood Conservation • Land Availability and Room to Grow • Inefficient Land Use • Community Divisions • Downtown Development • Local Organizational Capacity Downtown Development T he city is rightly committed to a downtown development program. The city and region have both demonstrated a market for attached housing and multi-family development. The nature of demand for pedestrian-scale retail space and new housing environments remain relatively untested, but nevertheless compelling. This project will require close cooperation between public and private sector, but can generate great community rewards.

27. Homogeneous Housing Stock • The Equity Ceiling • Sense of Place and Image • Changing Population and the Next Generation • Neighborhood Conservation • Land Availability and Room to Grow • Inefficient Land Use • Community Divisions • Downtown Development • Local Organizational Capacity Local Organizational Capacity R aytown has relatively little experience with community development programs. It does not have a redevelopment authority or a community development corporation, has not carried out major redevelopment or land assembly programs, or administered CDBG-funded rehabilitation or development activities. The city will need to create a community development infrastructure to carry out key programs.

28. Development Absorption Potential • In determining a theoretical absorption rate for development in Raytown, we look at the annual growth rate that occurs in many mature metropolitan communities. While the city is limited in the amount of growth that can occur, this theoretical calculation helps determine the number of housing units that could be needed if the city were able to grow unfettered. • We consider a 1% annual growth rate to be a realistic target for a healthy, growing mature community. If a 1% annual growth rate is applied to Raytown, the city would have a 2007 population of 32,590 and a 2012 population of 34,252 • Almost 28% of the city’s households moved into their homes before 1979, indicating a large number of empty-nesters. As these units are sold they will likely be occupied by families, increasing the people per household and the city’s overall population.

29. Defining Potential Markets: Methodolgy • Use 1% growth scenario and assumptions about people per household generate ten-year overall housing demand. • Consider the distribution of household income in Raytown • Match income ranges with affordability price points, based on housing costs equal to 30% of adjusted gross income. • Define price breakouts for new housing demand, based on the assumption that new construction should ideally be affordable to the existing household income distribution.

30. Theoretical Ten-Year Development Potential1% Annual Growth Scenario • Housing demand calculation is based on a slowly increasing number of people per household and a constant vacancy rate. • We assume a continued replacement need of 15 units annually. This reflects the level of demolition of deteriorated units and conversion of some units. • This suggests a theoretical absorption of about 113 units annually.

31. Income Distributions and Housing Affordability Ranges Source: Census 2000, RDG Crose Gardner Shukert • Raytown has a negative balance of housing in the lowest and highest price points. • The city is short 2,202 units with values less than $50,000 or rents less than $300. • A shortage of the highest value houses leads many higher income earners filling housing that would be affordable to more moderate income households. This indicates the continued presence of a significant potential move-up market.

32. Ten-Year Housing Development Program, Raytown • Raytown has a 10-year absorption potential of about 500 units of owner-occupied housing within moderate or “move-up” ranges, between $90,000 and $190,000. • Raytown has a need for about 222 affordable rental units.

33. Raytown Area Housing Objectives • A housing program for Raytown should: • Focus on two solid areas of accomplishment to develop additional housing and define a new image of growth and dynamism – Downtown mixed use development and a new, urban residential development on a site outside of Downtown, preferably providing about 20 acres. • Identify future housing development sites and create a mechanism capable of assembling these sites for private development. • Establish standards that emphasize land-efficient housing forms to take full advantage of limited land resources while incorporating features that sustain high value residential areas. • Meet target market niches that are clearly needed in Raytown, with some emphasis on housing that provides move-up opportunities for maturing families and alternative settings for older adults.

34. Raytown Area Housing Objectives • A housing program for Raytown should also: • Preserve existing neighborhoods and housing stock by maintaining their value for a new generation of homeowners. Use a variety of neighborhood development strategies, including organizational and infrastructure support, neighborhood amenities and identification, and rehabilitation and conservation programs. • Unify neighborhoods with each other and reinforce Downtown development by developing and implementing a pedestrian and trail plan, focused on the downtown center as its nucleus.

35. Organization for Implementation Raytown’s housing strategy will be built on two pillars – finding and packaging sites for new development and rehabilitation of existing homes. The city must create the organizations capable of implementing these efforts. • Components of this organizational framework include: • A Redevelopment Authority (LCRA) • A Community Development Corporation • Homebuilders • A Lenders Consortium

36. Organization for Implementation Components • Land Clearance and Redevelopment Authority (LCRA) • An LCRA is a public agency that can assemble, prepare, and convey land for private redevelopment. Under Missouri law, the City Council can act as an LCRA or create an independent agency. Because Raytown is new to redevelopment, and because redevelopment may well involve involuntary acquisitions, we recommend the City Council option. This ensures that difficult decisions are made by politically accountable officials and according to a consensus in the community. After initial successes and a demonstrated track record, the LCRA could ultimately evolve into an independent agency.

37. Organization for Implementation The Members • Community Development Corporation (CDC) • Community Development Corporations are nonprofit developers governed by a Board of Directors and operating in the same entrepreneurial way as a conventional developer. A type of CDC, called a Community Development Housing Organization (CHDO) must have a majority of board members drawn from the community and has special access to some federal community development funding. CDC’s can develop projects, acquire and rehabilitate properties, and act as general partners for affordable housing development.

38. Organization for Implementation The Members • Lenders Consortium • A cooperative venture of Raytown’s lenders, designed to provide working capital for CDC-based initiatives. A consortium shares the risk and exposure of projects that may be perceived as high-risk or requiring “patient money.” Capitalization for loans may be derived proportionate to the local assets of participants. Potential deals include: • Construction financing for CDC-sponsored rehabilitation projects. • Construction financing for new infill construction. • Securing of assistance through Federal Home Loan Bank programs.

39. Organization for Implementation Roles of the Participants

40. Downtown Development Raytown is highly and appropriately committed to Downtown development, and has selected a developer to begin this process. As a development partner and initiator, the City should follow consistent principles based in the market and producing a great district for the long-run. • Land Assembly • Avoid Orthodoxies • Initial Critical Mass • Incremental Development • Multiple Developers and Consistent Design Standards • Mixed Uses and Housing Types • Linkages and Pedestrian Scale • Supporting Public Improvements

41. Downtown Development Land Assembly • The city will almost inevitably have to assemble land and development sites beyond the land that it currently • controls – the First Baptist Church site. Therefore, creating an LCRA should be initiated in the early stages of the Downtown enterprise.

42. Downtown Development Avoid Orthodoxies • The key to successful Downtown development will be growth that is supported by the market; works for potential retail, office, and residential tenants; and maintains the values of town center development, such as mixed uses, public space, pedestrian scale, variety within unified themes. Projects should be designed around these objectives, rather than their complete consistency with a single design product. In other words, the objective should be “good urbanism” rather than “New Urbanism.” (By the way, they are often the same)

43. Downtown Development Initial Critical Mass The building block of Downtown development must be a successful initial project. The scale of the project must be small enough to receive rapid absorption and large enough to achieve critical mass – a scale that is economically and physically self-sustaining and complete. We suspect that this initial project area will include both the First Baptist property (city-owned) and the mostly vacant Raytown Plaza. Redevelopment of Raytown Plaza will remove a highly visible symbol of commercial obsolescence.

44. Downtown Development Incremental Development Downtown development will probably be (and arguably should be) an incremental process, growing over time. Incrementalism is often an attribute of successful development programs in emerging town centers. Each increment should be designed to build on the foundation of previous development, creating a unified whole at the end of each stage.

45. Downtown Development Multiple Developers and Design Standards Because of the incremental nature of Downtown development, and the number of individual ownerships along 63rd Street and Raytown Road, the downtown canvas will be completed by many painters. The city should continue its downtown master planning process to establish a detailed framework for continued development. The city should also develop design standards to guide a variety of individual decisions. Design standards should avoid micro-management, but should address issues that are fundamental to the character and function of the district. Examples of key issues include scale, building articulation, materials, relationship to the street, and signage.

46. Downtown Development Mixed Uses and Housing Types Downtown development should include commercial, office, and residential development. Residential development may find a more ready short-term market than retail development. We believe that market support exists in Raytown for quality apartments over commercial development and for townhouse, attached housing, and high-density single-family configurations. Development in the downtown “core” should feature higher density forms, while areas on the edge, most notably the horse track site northwest of 63rd and Arlington, can accommodate a larger variety of housing types.

47. Downtown Development Linkages and Pedestrian Scale New development should have a strong relationship to public spaces, including sidewalks and public spaces. Overall planning must also address linkages and progressions of development centers, including the racetrack, Center 63 shopping center, First Baptist sites, Raytown Plaza sites, and the existing commercial fabric along 63rd Street. Challenges include the distances between these development centers, the three north-south streets (Raytown Trafficway, Raytown Road, and Blue Ridge Boulevard), and the depressed railroad corridor.

48. Downtown Development Supporting Public Improvements The Downtown Raytown effort will require supporting public improvements. Some may be financed through project revenues, but others may require city capital budgeting. Some of these potential improvements may require streetscape, replacement of the Raytown Road bridge, public spaces, and some street improvements.

49. Development Site Assembly Outside of Downtown, Raytown’s fundamental development challenge is one of site assembly. The second pillar of Raytown’s development program should be identification and (if necessary) assembly of sites for new residential development. An LCRA will be fundamental to this effort. Sites will then be conveyed to developers, possibly based on an RFP process that defines development objectives and standards. • Components of this strategy include: • Identification and development of vacant sites • Redevelopment site identification and assembly • Development objectives and standards

50. Development Site Assembly Vacant Site Identification and Assembly Raytown’s housing development program should start by identifying, inventorying, and potentially assembling largely vacant sites that do not require relocation of residents or redevelopment of housing. The city should begin by assembling a priority site of about 20 acres and offering it to developers, with specific design and development standards. Land assembly may require creation of an LCRA.