Havelock looks to be aggressive for growth

Faced with evidence of dwindling population, military downsizing and competition of neighboring cities, Havelock officials agreed in principle to adopt a more aggressive posture in securing areas of potential growth beyond its borders.

"We need to think about putting ourselves in a strategic position in the region," City Manager Jim Freeman said during a utility strategic planning session Tuesday at the Havelock Tourist and Events Center.

A presentation from staff suggested that if Havelock doesn’t stake its claim in surrounding areas, then Craven County and New Bern will.

"Don’t wait for it to come. Go get it," advised Dave Harvell, assistant city manager.

The meeting included information that showed the number of city water and sewer customers had declined since reaching a peak of 5,400 in 2008 and 2009.

"If we’re not competitive, maybe the way we increase our competitiveness is to increase our customer base," said Mayor Jimmy Sanders.

That may be difficult in the current climate.

"We don’t expect to grow in the next four to five years. We expect to shrink," Commissioner Danny Walsh said. "We’re losing customers, and we don’t expect that to change in the next five years."

Officials said more building vacancies, less construction and a migration outward away from the city were reasons for the decline.

Havelock is poised to begin the first phase of a project aimed to increase sewer capacity. The $12 million project moves the wastewater treatment discharge pipe from Slocum Creek to the Neuse River, increasing sewer capacity from 1.9 million gallons per day to 2.2 million gallons per day. An $8.5 million loan from the U.S. Department of Agriculture is helping pay for the project.

"We need to complete phase one. We will complete phase two based on the need," Sanders said.

Phase two would increase capacity to 2.8 million gallons per day and a phase three would boost capacity to 3.5 million gallons per day, but city officials have questioned whether there will still be a need for the last two phases given forecasted military downsizing at Cherry Point and a struggling economy.

That very question is why the city planned Tuesday’s meeting.

"In 2009, I don’t think anybody had any idea where we’d be in 2012," said Sanders.

City growth had been somewhat hampered with just about 100,000 gallons per day of available sewer allocation for new building projects, but with the first phase of the expansion nearing construction, Havelock stands to be more attractive to developers.

Havelock has about 350 acres of undeveloped area with a potential additional tax base of $78 million.

"It’s a new day. We have lived within the constraints for 10 years, but now it’s a new day," Sanders said of the opportunities for developers.

City Planner Scott Chase told commissioners that Havelock is facing stiff competition for home buyers from Newport, Morehead City and New Bern.

"Unfortunately that market share is being taken out of Havelock," Chase said. "New Bern and Morehead City want to kick Havelock’s butt."

Chase said potential renters or property buyers, many connected to Cherry Point, are being wooed by newer homes and apartments being built elsewhere.

"Whoever is the most competitive and willing to go 12 or 13 rounds is the winner. We’re in a stiff competition," Chase said. "If Havelock doesn’t get in it and start fighting, it could be a tumultuous time, especially if the base has cuts. We’ve got to get into the game and get into the fight."

Chase said that with the limited availability of land within the city limits, Havelock must look toward redevelopment.

"There will be a real opportunity for redevelopment here, but it is going to depend on incentives you push," Chase said. "Sometimes your local government has to step in with incentives to make things happen."

Commissioners discussed redevelopment of existing commercial areas that they described as eyesores.

"I don’t think it should be outside of our abilities to pay for demolition to help as an incentive for redevelopment," Commissioner Will Lewis said.

"We have to be in there being more aggressive," Freeman said. "Let’s get aggressive. Let’s keep punching."

Dan Harbaugh, city public services director, said decisions needed to be made.

"We’ve got to decide what we want to be as a community in the future before we can make some of these decisions," he said.

Havelock commissioners plan another meeting on Feb. 14 to plan strategy.