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Sunday, June 22, 1997

Prison's presence spurs home construction

By LORETTA FULTON / Abilene Reporter-New

A problem plaguing small Texas communities that are home to prison facilities may turn out to be a blessing in Colorado City.

About 20 acres of land will be cleared beginning next week to make way for a planned 72-home community that will feature new houses, a community center and park and at the same time add $3.5 million to the local tax base.

"I bet we haven't seen 72 homes built in the last 25 years," said Mayor Jim Baum.

Developer Bill Lee of Austin said only five new houses had been built in Colorado City in the past five years.

But thanks to an arrangement between private and governmental entities, the Hillcrest Addition will soon be a reality in the Mitchell County seat with a population of 4,600 residents and 2,330 prison inmates.

Of that civilian population, 530 are employed at either the Wallace or Ware units of the Texas Department of Criminal Justice. A third prison is scheduled to be built sometime in the future, bringing even more employees to town.

A lack of rental property, particularly apartment complexes and duplexes, is usually cited as the main drawback in small towns with prison facilities.

"Small communities have a difficult time getting rental properties," said James Campbell, director of the Brownwood Economic Development Corporation. Brownwood is home to the 500-bed, 200-employee T.R. Havins felony substance abuse facility.

But Colorado City decided to go a different route when financing provided difficult for rental property. Mayor Baum was tired of seeing only 50 percent of the prison employees actually living in Colorado City and contributing to its economy.

The benefits of landing a prison, with its steady payroll and long-term stability, are "predicated on getting people to live here," Baum said.

That's when Bill Lee, an Austin developer with a business called Covenant Communities, entered the picture. Lee was working with the Texas Department of Housing and Community Affairs when he heard of a housing shortage in some small towns.

"Someone in a passing conversation told me there were some real problems in the prison communities," Lee said.

Lee then met with state Rep. Rob Junell, who represents Mitchell County. Junell immediately organized a meeting of several state and local officials, including Nancy Sullivan, director of the Mitchell County Economic Development Corporation.

The result was the Hillcrest Addition, a product of a "covenant" of sorts with Mitchell County, Colorado City, and the Texas Department of Housing and Community Affairs which will provide affordable homes for moderate income people such as prison employees.

Two manufactured houses are scheduled to arrive in August to place on the first two foundations in Hillcrest and soon after that five or six models will be in place for people to view. Within three years, all 72 single-family houses are expected to be in place, along with a community center and park.

"Our slogan is 'good neighbors in good neighborhoods,'<n>" Lee said.

The arrangement that made the good neighbor policy possible includes donation of the land from the county, a $492,136 grant from the Department of Housing and Community Affairs for sewers and paving, and assistance from TU Electric and Lone Star Gas.

Another grant from a state agency will allow eligible people to receive $5,000 grants to cover the down payment and closing costs. Lee said prison employees make between $15,000 and $24,000 a year and most will qualify for the down payment assistance.

A homeowners association will be formed in Hillcrest and strict regulations will be in place to ensure that turnover in the addition won't cause the homes to deteriorate.

"You have to give people the ability to control their neighborhood," Lee said in order to maintain its appearance.

The houses will range in price from $43,000 to $55,000 and will be available to any people who qualify, not just prison employees, Lee said.

The arrangement seems to be a good alternative to building apartment complexes, something that developers are reluctant to do in small towns.

"It's much harder to get one financed," Sullivan said of apartment complexes.

And people involved think the single-family homes will enhance the city and make the owners feel a part of the community.

The one-story homes will contain between 1,000 and 1,500 square feet and all will have a front porch.

"They look a whole lot like a lot of the houses in the community already," Lee said.

Other area communities are facing similar problems with most having inadequate rental property for an influx if prison employees.

Breckenridge is home to the Walker Sayle Unit, a 500-bed felony substance abuse facility. It employs 204 workers.

City Manager Gary Ernest said everything available to rent in Breckenridge is rented. Some people commute and others live around Lake Hubbard, he said. The city continues to work with developers, but "we've never been able to get anyone to come in and build," he said.

Chamber of Commerce manager Bob Donnell said the city was at a critical point about two years ago but has stabilized now. He said about 70 percent of the prison employees now live somewhere within Stephens County, but more rental property would be welcomed in Breckenridge, particularly duplexes or quads.

"That would be something we would really like to look at," he said.

Nearby Albany in Shackelford County has attracted some of the Breckenridge overflow.

"In certain price ranges there's a shortage," said City Manager Bobby Russell.

Russell said he has talked to "four players" about new housing.

"There's a lot of interest," he said. "I'm thinking it's going to start very quickly."

Russell said about 30 prison employees live in Albany, either from the Walker Sayle Unit or one of the Abilene prisons.

"We would have more if we had additional houses," he said.

Brownwood is suffering from a housing shortage, but more so because of expansion at two manufacturing plants than from the 200-employee T.R. Havins substance abuse facility.

Both 3M and Kohler had added several hundred employees over the past three years, said James Campbell, director of the economic development board.

"That's probably hurt us as much as the prison has," he said.

Campbell said a lack of rental property is "still our number one priority." He said 50 apartment units will be under construction this summer.

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