New Study Supports Need for Workforce Housing in Tallahassee.

City of Tallahassee & K2 Urbancorp Join Community Partners to Address Needs

TALLAHASSEE, Fla. -- K2 Urbancorp, on behalf of its Public-Private Partnership with the City of Tallahassee, and a consortium of corporate partners, today released an independent, in-depth analysis of the growing need for additional workforce housing in Tallahassee and Leon County. The workforce housing study was conducted by GVA Marquette Advisors of Minneapolis, Minnesota, and is available for review at www.k2urbancorp.com.

Researchers compiled the study by analyzing local residential market statistics and through extensive interviews with members of the Florida Home Builder's Association, the Tallahassee Board of Realtors, the Tallahassee Builder's Association, local developers, lenders, and affordable housing advocates. The study focused on three key areas: quantify the five-year demand for workforce housing in the City of Tallahassee; identify the existing barriers to workforce housing, and conclude whether public-private partnerships were needed; and evaluate the economic benefits of providing 92 additional workforce housing units in Tallahassee.

"The study came to several very important conclusions about the future growth and housing needs of the Tallahassee, Leon County Community," commented Brent Wittenberg, lead researcher and Vice President, GVA Marquette Advisors. "Most important, it is clear to me that the need to provide affordable housing for all citizens is more than a worthy comprehensive planning goal, it is an economic imperative."

The GVA Marquette Study calculated that over the next five years, the City of Tallahassee will need an additional 1,363 (for sale) workforce housing units priced between $100,000 and $160,000. That is approximately 273 units per year, or 20% of what is currently being built in the area on an annual basis.

"The results of the study provide a hard dose of reality for all of us," commented David Wamsley, CEO of K2 Urbancorp. "We need to remember that these units are critical as they house our teachers, nurses, firemen, and essential services personnel that support our entire state government system. Never before has this segment of our community had such a difficult time finding a quality place to live, near where they work."

The study also found that public-private-partnerships, like the one proposed by K2 and the City of Tallahassee, which would provide 92 workforce housing units at Evening Rose, will be necessary if any real progress is to be made.

"It is clear from the analysis that construction of workforce housing will not occur in Tallahassee without public support, including direct subsidies," said Wittenberg. "Clearly the need for government support has expanded beyond just the low-income segments and must work to provide affordable housing for all of its residents."

Finally, the researchers estimated the positive economic impact (to the City of Tallahassee) created by the new in-town residents of the 92 workforce housing units will be over $31 million over the next 20 years. Considering these 92 units only satisfy about 33% of the annual demand, the economic implications for not addressing this issue are ominous. The study goes on to highlight the fact that the economic vitality of the community will suffer if we cannot find quality, in-town housing for this critical group of essential services personnel.

"The study shows very clearly the need for workforce housing in our community and why it is imperative that local government and developers work together to find innovative solutions," said Wamsley. "Our Evening Rose project, which recently applied for a $5 million Florida Housing Corporation (CWHIP) grant, is just what the lawmakers had in mind when they passed House Bill 1363 during last year's legislative secession."

Evening Rose, a 36 acre high-profile mixed-use project located in the heart of urban Tallahassee, will be the city's first true, in-town, Traditional Neighborhood Development (TND) and will be located next to hospitals and just three miles from the Capital Building downtown. This new community will combine a traditional mix of single and multi-family homes, live/work units, residential condominiums, office space, and retail amenities.

"Traditional Neighborhood Developments promote the creation and restoration of diverse, walkable, compact, vibrant, mixed-use communities composed of the same components as conventional developments, but assembled in a more integrated fashion, in the form of complete communities," said Wamsley. "TNDs, by their very nature, also allow for the inclusion of many different income levels, which in turn makes them a perfect vehicle for providing workforce housing."

K2 Urbancorp, founded in 2002 by David B. Wamsley, Fincher W. Smith and Timothy A. Jamieson, is an award-winning home builder and real estate developer. Known widely for styles that harken back to the early 1900's, K2 Urbancorp is focused on building unique communities and enduring homes that reveal timeless craftsmanship and quality.