PowerPoint Presentation

Building the New Watford City

By Brent SanfordWatford City Mayor, 2010-2015October 27, 2015Watford City 1914-19871914 The BeginningCity platted at the end of the Great Northern rail lineLots sold and a town came out of the prairie1940s -- Post War EconomyPeople began moving into town from the country 34% increase in population to 1,371One could buy whatever you needed in Watford1950s -- Oil Boom IDiscovery of oil brought oil families from Texas, Oklahoma, LouisianaAnother 35% increase in population to 1,8651980s -- Oil Boom IIOfficial population in 1980 at 2,119Boom was handled with temporary facilities, trailer parksThe late 80s bust left the community with cheap industrial shops, vacated RV parks, outmigration and declining school enrollmentWatford City Buffalo CommonsThe Bust Late 80s to Early 00sThe prairie was emptying from the mid 80s to mid 00sWatford City High School Class of 1995Began with 95 Kindergarten students in 1983, graduated 41Births in McKenzie County in the year 2000 were UNDER 10Two homes constructed in town during this time periodAs local retailers, national franchises and vendors pulled out of the area, Watford City became a bedroom communityYear 2000 Headcount -- 1,400 Population. Kindergarten class under 10 students.No Oil, no rail, no 4-lane, no manufacturing, no Ag Value-added

Where do we go from here??

Watford City mid 90s to mid 00s Economic Development and Gene VeederEconomic Development The Spark!Gene Veeder and Watford City had statewide recognized successesAdmiral Bill Owens /SAIC / CERA siteTelemarketing and remote computer programming centers

2000 Community Strategic Planning SessionThe Goal was to make the community a great home for those who wanted to be here so lets invest in ourselvesWatford City Home rule charter: Roughrider Fund 1% community development sales tax and 2% Lodging Tax. To help choose our own destiny.

Community projects completed in the down times for ourselves:Hockey / Rodeo multi purpose buildingVeterans Memorial AuditoriumWild west water park and Childrens ParkPublic Golf Course Clubhouse expansionLong X Visitor CenterWatford City Housing Authority 8 townhomesLSS Housing 24 units of affordable housingMain Street Improvement projectRenaissance Zone -- Storefront improvement program

Watford City 2003-2009The Bakken Oil Development mid 00s to 2009The Bakken exploration had been finding its eventual edges in the 2000sBaker and Fairview, Montana in early 2000s; Stanley and Parshall in 2007-2009Local officials new it was comingMcKenzie County had always been in the center of the Oil BasinLandmen swarmed our courthouse in the mid 2000sCounty had oil production since the 50sBut the housing and retail developers did not believe the market potential of Watford City Local high school graduates began moving back to Watford CityOil jobs were coming back to western NDCollege educated WCHS grads moved home buying businesses or working in Utility, Government or Education fields.Class sizes moving back into the 25-30 range.Housing was no longer cheap or availableThen the Bakken Arrived in late 2009No one could have known how much was coming

Watford City Bakken 2010-2011: PlanningCommunity Planning 2010 era Employment BoomDrilling rigs began moving in at higher levels in 2010Skid shacks and RVs began showing up in Watford City by the dozens for the drilling industry employeesCity Engineer devised a system of Temporary Conditional Use Permits with annual reviews to allow zoning variances for property owners providing parking spots for the inflow of temporary housing unitsUS Census counted 1,744 people in 2010. (This sets a lot of fed and state funding.)Community leaders began strategy formulationDo we want to handle the influx of people with mobile homes and campers and food trucks, then simply watch them drive away when drilling tapers off? And be left with nothing like the 80s?OrDo we want to meet the opportunity presented by the Bakken drilling plans head on? And only allow permanent building projects so we are left with a better city?

We chose the latter. The City began our Capital Improvement Plan in 2010.

Watford City Bakken 2010-2011: Planning (2)Community Infrastructure Planning 2010-2013City Council Hired AE2S as City EngineerFormulated a 5 year Capital Improvements Plan to identify and prioritize the infrastructure needed to handle the potential growth in identified growth areasState funded sewer and water trunklines in 2011 legislative sessionDevelopers swarmed into townCity Council Hired Curt Moen as City PlannerWCHS graduate in 1985 with community planning and developing experience in the Las Vegas areaHe is the catalyst behind what you see for new building around the former city limitsCity Council moratorium on Temporary Housing - 2011NDSU / KLJ Industry Impacts StudyProjects the need for housing 17,000-21,000 permanent population based on the long term jobs resulting from Bakken well projectionsAvailable housing units needed to grow from less than 1,000 to 10,000 units, based on the Study

NDSU StudyPopulation Potential, by County, Medium Scenario, Williston Region, 2014-2019

NDSU StudyHousing Needs by County, in Total Units, Medium Scenario, Williston Region, 2014-2019

201420152016201720182019Watford City Bakken 2015 (1)Current Status - 2015Watford City has a current estimate of 2,500 permanent units completed 11,000 permanent units needed according to KLJ/NDSU studyEstimated current area population of 10-12,000 with over 7,000 estimated to be living in temporary accommodationsSo we are still far behind the needed amount of permanent housing unitsNew Sewer Plant with 7,500 pop. capacity is full before opening Rents are $1,500-3,000 for 2 bedroom apartmentsHouse rents went from $250 up to $5,000/monthHouse sales from $40,000 up to $350,000 on for same house 5 years laterSingle Family home development has been slow to ramp up.Projections say that we will need 5,000+ single family homesHave completed less than 100 single family homes to date WHY?

Infrastructure Deficiency has been THE central challenge

Watford City Bakken 2015 (2)Infrastructure, infrastructure, infrastructure -- As our growth needs became apparent, the reality of the infrastructure deficiency set in.Highways, Streets, Sewer and Water for 1,500 population footprintAll were 1950-1980 vintage in need of replacementInfrastructure Needed:New Sewer/Water Systems, New Streets current City plan is over $340 millionWater Source WAWS (completed)New Hospital under constructionNew Schools High School under construction, Elem School in planningNew Jail and LEC under constructionNew Park and Rec facilities Events Center under constructionHighway Bypass - completedA NEW COMMUNITY FOR 10,000+ BUILT AROUND THE OLD CITY

How do you fund infrastructure to expand a City from 1,500 to 15,000?ANSWER Community borrowing, State support, Developers self funding

Watford City Bakken 2015 (3)Community Borrowing - $350+ millionHigh School $54 millionCommunity Events Center $92 millionCity Wastewater Plant$30 millionCity Special Improvement Dist.$27 millionHospital/Clinic/Longterm Care$80 millionCounty Law Enforcement Center $58 millionWolf Run Village Apartments$ 7 millionWolf Pup Daycare$ 4 million

WE HAVE STORIES OF COLLABORATION IN ALL OF THE ABOVE! EACH ONE IS A LIFETIME TYPE PROJECT.

Watford City Bakken 2015 (4)State Funding -- $250+ million in the AreaCommunity Leadership continued its collaboration with the ND Oil and Gas Producing Counties organization and engaged State Leadership to communicate the growth needs County -- Ron Anderson, Roger Chinn, Linda Svihovec, Gene Veeder, School -- Steve HolenHospital -- Dan Kelly City -- Brent Sanford

Oil Impact Funding legislative action the last 3 sessionsSewer and Water Mains 2011 and 2013 Impact fundingArterial Streets 2015 Surge funding of $32 millionWater infrastructure SWC 2014Law Enforcement/First Responders Equipment, Vehicles, Training 2011, 2013, 2015 Impact fundingSchools Housing grantsHospitals bad debt and housing grantsGross Production Tax / Oil Formula increases legislative action last 3 sessionsHIF affordable housing grants (multiple local projects)NDDOT -- Highway Bypasses, Business Routes, Highway 85 and 23BND -- Direct Borrowing for Western Area Water Supply ProjectBND -- Direct Borrowing from our Gross Production TaxBND/NDPFA -- Direct Borrowing for SRF eligible public utility projects

Watford City Bakken 2015 (5)Developer Funding - OngoingCurb and gutter, utilities and streets -- on their own, not SIDOffsite improvementsExtending streets and utilities to their developmentsRepayment is possible, but a large upfront costCommunity assessments$2,500 per unit for Fire, Ambulance, School, Police, Parks supportHigh Land costs -- $2-$10/footTighter Credit terms when borrowing for projectsHigh labor and material costsNot as easy to do here as FargoWatford City Bakken 2015 (6)Where do we go from here?$45 oil is bringing out the Chicken Littles School enrollment still increasing from 500 up to 1,400 students since 2010Excessive camper population 30-40% of studentsHousing unit needs gap we need up to 10,000 units per NDSU/KLJ long term impact study. 2,500 so far.Retail developments still coming, following new rooftopsHousing developers still here but losing steamNo oil companies are saying they wont drill their 60,000 wells in the area So the jobs arent going awayWE HAVE NO CHOICE BUT TO KEEP GOINGWE ARE KEEPING OUR EYE ON THE HORIZON, STILL PLANNING AND REINVESTING AND COLLABORATINGPlanned Developments Watford CityFuture Land Use Planning Study2040 Future Land Use and LRTP

The New Watford City - TakeawaysRecipe for Success: Embrace your natural strengths and empower your local leaders. Plan, collaborate, and invest in yourselves.

Planning Embrace your natural strengths what makes your community unique? Define desired community infrastructure be broad in your definitionPut together a plan to get thereReinvestment -- Tax yourselves, prioritize other public revenues and reinvest in community infrastructureFlexible growth keep the infrastructure plan flexible and future focusedLeadership -- Identify and Empower local leadersCollaboration -- avoid infighting at all costs, you are all on the same team

Questions or Comments?

Thank you!Contact information:Brent Sanfordbrentsanford3@gmail.com