City Hall will create a task force to propose solutions to skyrocketing housing prices in Lawrence.

The decision Tuesday by the Lawrence City Commission came after an ultimatum from the city’s Housing Trust Fund Advisory Board, which asked to be given a permanent funding source or to be disbanded.

“Without a permanent funding source, there’s no point in having us around,” said Ed Tato, the board’s chairman.

Commissioner Boog Highberger proposed creating the task force, both to address the trust fund’s future and to take a broader look at the issue.

“I think the concept is important,” Mayor Mike Rundle said. “We need to have a more major impact on affordable housing needs.”

Appointment of a task force comes as housing prices rise quickly in Lawrence.

The Douglas County Appraiser’s Office reported this month that the average sale price of a single-family home had risen 30 percent since 1999 — from $125,900 to $162,600.

During that time, Tato said Tuesday, the Housing Trust Fund Advisory Board has been unable to make much progress on the matter.

City Hall launched the trust fund with much fanfare in 2001, using $500,000 left over from construction of the Lawrence Indoor Aquatic Center. Its mission: buy, build or renovate housing for people who would otherwise be unable to do so.

Some money was spent: $66,000 — from interest earned on the initial endowment — in 2002 on six small projects aimed mostly at repairing existing housing.

“I don’t think we affected more than 30 units, and none of them would be considered sustainable, in the sense we knew they would remain affordable over time,” Tato said.

6News video: City may face lawsuit over site-plan denial

Tato said the board needed annual income of $200,000 to have a significant influence on the affordable housing issue.

“You can’t do that with ten or twenty thousand dollars,” Tato said.

Highberger had previously said a task force should look at technical issues such as housing lot sizes and street widths as a means of addressing the matter. Commissioner David Schauner said the task force should also look at Lawrence income levels.

“You can’t talk about affordability without a legitimate discussion about lack of income,” Schauner said.

Formal appointment of the task force will happen in the next few weeks, officials said.

Lawsuit coming

Another lawsuit against City Hall appears likely.

Lawrence developer Harold Shepard told the Lawrence city commissioners Tuesday he would sue them for denying approval of his proposed 25-unit apartment complex for Seventh and Wisconsin streets. Planning staffers had said the project met city codes.

“I’m charging you with different treatment. I don’t intend to be treated this way,” Shepard said. “I don’t know which way or how to sue you, but I will be suing the city.”

Shepard, who is black, said afterward he wasn’t suggesting that race played a role in his different treatment, but antipathy generated by years of development in Lawrence.

“They personally don’t like Harold Shepard,” he said of the commissioners.

Despite Shepard’s threat, commissioners unanimously approved findings of fact that formed the basis of their denial, including incompatibility with surrounding single-family homes and potential traffic problems. Neighbors who opposed the project praised the action.

“One of the standards (a development must meet) is it has to meet city codes, and this project does not,” said Emily Hill, a nearby resident.

Executive session

The commission met behind closed doors for 20 minutes Tuesday night.

Officials said the executive session was needed for confidential legal discussions with Scott Beeler, the Overland Park attorney whose most prominent work for City Hall is the defense against lawsuits over its refusal to allow a Wal-Mart at Sixth Street and Wakarusa Drive.

No further explanation was given.

Homeless funding approved

The commission on Tuesday agreed to fund round-the-clock services for the homeless through the end of the year — but declined a 2005 commitment until commissioners hear from a city task force studying the issue.

The $11,610 approved Tuesday night will be used to pay a case manager to work with the homeless at the Community Drop-In Center, Salvation Army and Lawrence Open Shelter during hours those agencies are usually closed.

“I don’t know what else to do,” said Tami Clark, the drop-in center’s director. “There are people in pain, who have mental illness … who have no place to go.”

Commissioners said they want to see the Homeless Task Force’s recommendations before committing to 2005 funding. That report is due by the end of the year.

On a related note, Commissioner Boog Highberger tried to stem controversy over the city’s recent short-notice bulldozings of homeless campsites.

“If we’re going to remove people, we’re going to give them adequate notice,” Highberger said. “I want that to be absolutely clear.”

Water use down

The relatively cool and wet summer has resulted in a lower-than-usual demand for water in Lawrence, city officials reported Tuesday.

On the busiest day this year, Aug. 7, the city pumped 16.2 million gallons of water to customers. The heaviest day in 2003, Aug. 4, was 25.4 million gallons.

Through the end of July, officials said, total demand for water was down 11 percent from a year ago.