Senator CANNON. These figures that you gave on new housing? Does that include the city of Omaha or is that exclusive of the city of Omaha?

Mr. MEYERS. That is only in the area covered by the map, which is exclusive of the city of Omaha, Sarpy County only, including Belle

view.

Senator CANNON. Do you have any official figures on the rate of growth of that portion of the area?

Mr. MEYERS. No, sir.

Senator CANNON. The percentage of growth in the past year or two?

Mr. MEYERS. No, sir, I don't.

Senator CANNON. In using the Capehart allowance does the occupant also have to pay for utilities?

Mr. MEYERS. No, sir, that is included, that is my understanding. So that actually what they are getting if you take the 4-bedroom house with that which is the biggest one they build in Capehart, and if you take the average of $16,500 cost, which runs throughout the project, and add to it a reasonable price for the land and the offsite utilities, which are not included in there, a colonel as I said with a $136 housing allowance is getting about an $18,000 to $20,000 house, which private industry would have to charge $180 to $200 a month for to come

out.

Senator CASE. Mr. Chairman, the clerk has just handed me a table showing the housing allowances for various grades of officers and I would like to put it in the record, the entire chart here. By way of illustration, a master sergeant with three or more dependents, is allowed $96.90.

Mr. MEYERS. Yes, sir.

Senator CASE. That would mean a $9,600 house would take his allowance and he would have the utilities to pay on top of that for private housing.

Mr. MEYERS. Yes, sir. In that respect he is no different than a civilian who is in the same general category of income that he is, and we feel that if Congress desires that these people have a greater amount of housing than they can buy with their allowance, we feel it should be done by raising the allowance, in which case we would offer no objections.

Senator CASE. I would like to have that table put in the record for reference.

(The table referred to follows:)

HOUSING ALLOWANCE

The following allowances are paid to military personnel in lieu of Government quarters. These allowances cover rental (or charges) and utility costs.

Senator CASE. I have nothing further of Mr. Meyers. Senator CANNON. Thank you very much, Mr. Meyers. (The prepared statement of Mr. Meyers follows:)

PREFACE

Offutt Air Force Base is located 11 miles south of Omaha on Highway 75. Immediately to the east of the base is the 100-year-old city of Bellevue, now a thriv ing community of some 8,000 people, many of whom are Air Force personnel. Because of its proximity to the base, Bellevue is frequently referred to as "the fastest growing city in Nebraska."

Actually Offutt is a comparatively new military installation. Part of the land now occupied by the base was old Fort Crook, a military installation built by the Government in 1896. Never of particular importance, Fort Crook was an infantry post in its earliest days. During World War I it was a motor transport center, and during World War II it was an induction center and motor supply depot.

The Martin bomber plant which played a major part in the production of bombers in World War II was located near the fort, with the result that a large runway was constructed able to carry the load of the big bombers of that era. After the war the bomber plant was closed down but many of the facilities were made available for the fort and later the Air Force base.

In 1948 the Strategic Air Command, after surveying some 40 locations throughout the United States, chose Offutt as its headquarters. Since then it has be come the nerve center of America's great retaliatory airpower.

Bellevue, Sarpy County and Omaha were and have been grateful for the loeation of Offutt Air Force Base in this area. The files of the Omaha World-Herald and Bellevue press are full of articles by commanders at the base expressing their complete satisfaction with the cooperation of the civilians in this area. On numerous occasions mention has been made of the fact that the people of Omaha and Bellevue have worked together in complete harmony and as a team without the usual and customary bickering which in many places follows military establishments. Many of the commanding officers have been extreme in their praise of the local civilian population. In return, the chambers of Commerce and other public groups have exerted themselves to support the base.

In 1951 the local chambers of commerce, builders associations, in fact the whole community welcomed the building of the 611 unit Wherry housing project. It is true that for a few years thereafter the real estate people in the area felt the effects of the Wherry housing project, but as SAC has constantly grown the slack caused by Wherry housing was soon taken up and both Omaha, the Sarpy County area and Bellevue have moved rapidly ahead.

In 1957 the military proposed the erection of 400 Capehart units about 11⁄2 miles west of Offutt across Highway 75. The suggestion was received with considerable enthusiasm by merchants, chambers of commerce and organizations in Bellevue and Omaha and the surrounding towns of Papillion and Ralston. These units are now in the building stage and occupancy is expected by late summer.

Some time later, the Air Force asked for and received an additional 216 Capehart units. These have just passed the bidding stage, so that up until now the only Government housing at Offutt are some of the relatively old barracks which have been remodeled from the days of Fort Crook and the

Wherry housing units. However, in the immediate future Offutt will have 616 Capehart units of military housing plus the 580 units of Wherry housing. Naturally, there has not been sufficient time for the effect of these units to be felt in the community.

However, before this housing is even occupied, Offutt is now asking for 800 more Capehart units. In other words, a Capehart military community of some five or six thousand people is definitely envisioned and many businessmen and citizens are wondering when these requests are going to cease. They wonder what the economic effect of this housing will be on the entire local area.

To look into the matter, an organization of over 200 businessmen, known as the Association of Private Industry has been formed. This presentation is designed to consider the question and to show that at the present time there is no need for additional Capehart construction.

If given the slightest cooperation by the military, local builders can and will be able to provide whatever housing is necessary for Offutt. They believe that they can do it better and in the long run cheaper than can the Federal Government.

In support of this contention a survey has been taken among local builders and the accompanying map has been prepared to show how much private construction is planned-where such construction will be, and when such construction will be finished.

It must be understood that this proposal is predicated upon the removal of the immediate threat of additional Capehart construction. Builders cannot secure the financing and are not willing to undertake the risk in subdividing and developing housing projects with more Capehart staring them in the face.

These men in this association know they can do this job and that they can do it as it should be done by competitive private business rather than as Capehart housing. They believe firmly that housing built by local private industry is the American way. They are opposed to the creation of separate military communities right next door to metropolitan areas. Being aware of the need of the military and the tremendous importance of the SAC headquarters, the effect of this military city on the whole area must indeed be recognized.

Many isolated bases in this country and abroad undoubtedly need some such installation as Capehart housing. But is it necessary at Offutt? We definitely believe not.

AVAILABILITY OF HOUSING

Although time has been a limiting factor, a survey was conducted to determine how many housing units are or could be made available in the Offutt area. Up to date some 30 firms actively engaged in building in the Offutt area have been surveyed. The results of this survey are of great importance in determining the necessity of additional Capehart housing in the Offutt area.

In the past 5 years the firms surveyed have built 1,719 housing units. It should be said here that there has never been any direct cooperation from the military to accomplish this result. Some 4 years ago a meeting was held and plans were sketched for the possible expansion of the base, but since that time builders, finance people, subdividers and the like have had no working arrangement with the military authorities so that the builders would know what housing requirements were needed.

It would seem that this has been a serious mistake for had there been a working arrangement, the local people would have been in a much better position to develop the necessary housing as it was required. As it is, they have had to rely on published news articles in the papers, and, worse yet, rumors. In spite of this lack of cooperation 1,719 units of private housing have been built. The survey also discloses that there are now being planned, and many of them are now under construction, 958 housing units in 1959.

In the survey, the builders were also asked this question: "Has the threat of Capehart housing held down your proposed building plans?" Universally they said "Yes." Many of them elaborated in detail. These are some of the statements: "There is a lack of investors to purchase loans due to the threat of Capehart housing"; "Capehart public housing has made investors shy"; "It is very difficult to obtain financing on income property due to the threat of so much public Capehart housing"; "Hesitate to go ahead-don't want to build without the assurance of renting the houses"; "If military personnel is forced to live in Capehart, houses will not be rented or sold"; "Can't compete with the Government"; "Private capital cannot compete with tax-free public

housing;" "We do not know what the demand will be, if any, after more Capehart is built"; "Investors will not commit themselves for the future where more Capehart is planned"; "If more Capehart housing goes through, I will be out of business." These are just some of the many comments and yet they give a rather striking picture of the thinking of these men who are practical builders. The questionnaire then proceeded to inquire what building would be undertaken this year if the threat of additional Capehart housing is eliminated. Here are the figures: 1,081 rental units will be constructed within the next 6 to 9 months. 805 units will be built for sale. In other words, a total of 1,886 units in the Offutt area will be constructed by private industry within the next year.

It is interesting and most important to note that 958 units are now planned but that if additional Capehart housing is eliminated, 1,886 units will be built, almost twice as many. From these figures can anyone doubt the effect of Capehart on local building or criticize local builders for not having met the housing needs of the base?

Base personnel have asked this question: "Why is it that the local builders have been so slow. The answer is that from the initiation of the Wherry housing project in 1951 there has never been a clear picture of what the need might be, and naturally builders have been slow because of fear; and finance people have been hesitant to furnish the necessary financing because of fear. It is obvious that had there been cooperation between the base and the local builders, there would have been no need for Capehart now or at any time in the future. The threat of Wherry housing, and later the threat of Capehart housing, at the Offutt Airbase has caused whatever temporary shortages that there may be in housing at the base.

On the accompanying map you will see located the airbase, Bellevue, Omaha, Papillion and the major roads in the area. The shaded-in areas show where the proposed 1,886 dwelling units will be erected in Sarpy County. The rest of the proposed construction will be in Bellevue and in Papillion.

Spokesmen for the airbase have dwelt long and loud on the need for housing near the base. They have indicated that housing is needed within a few minutes of the base. This is because there will be only a short period of time between the first warning and the time needed for an allout effort in defense May we here point out that the community of Bellevue is within a stone's throw of the base. All that separates many of the Bellevue homes from the base is a high wire fence. Here is where these proposed houses will be built.

SURVEY IN BELLEVUE

Our survey shows that if the threat of additional Capehart is eliminated there will be built this year in Bellevue a total of 792 housing units. Of these 50% will be rental units and 284 will be for sale. From the standpoint of time to the base most of these units would be closer than to the Capehart location.

SURVEY IN SARPY COUNTY

The survey shows that if the threat of additional Capehart is removed that 1,094 units outside of Bellevue will be constructed this year. Of these, there will be 573 rental units and 521 units for sale.

The map specifies driving time to the sites of these proposed units. Actual driving time was measured within normal speed limits.

It can thus be stated that all of the proposed 1,886 units will not only be within the 20-minute requirement of the Air Force, but will actually be within a 12-minute zone. The argument then that Capehart is necessary in order to have the men near the base in case of an emergency is clearly fallacious.

According to figures presented by the military at a public meeting in Bellevue the known increase projected at the base in 1962 is 1,083. Certainly the proposed 1,886 units as shown by the survey would more than adequately accom modate this known increase. And if more houses should be necessary, the local builders are able and willing to construct them.

SUMMARY

A careful perusal of this map with the figures presented as a result of this current survey shows that additional Capehart housing is absolutely unnecessary

ADEQUATE HOUSING

Spokesmen for the Air Force have stated that at the present time approximately half of the people stationed at Offutt are inadequately housed. There is no doubt there is a measure of truth in this assertion. As a matter of fact, it can be further stated that many of the people in this country are inadequately housed. Certainly in the Bellevue, Sarpy County, area with the rapid growth that has accompanied the expansion of the base, many instances of inadequate housing could be shown. But there again had there been cooperation between the base authorities and the civilian population, much of this problem could have been eliminated.

It is our understanding that the Congress has set up certain minimum standards for military housing. These standards include the number of bedrooms, size of the dwelling, number of baths, rental, and so forth. It is contended that Capehart housing will be adequate, but that much of the civilian construction will be inadequate.

It should be noted that much of the housing which is now called inadequate was adequate at the time it was built. The reason why it is inadequate now is because the standards of the Air Force have been greatly increased. The Wherry housing project of 611 units was built in 1951, only 8 years ago. Yet commanders at the base say that much of this Wherry unit is now inadequate. If standards continue to rise, there can be no doubt but what Capehart too will be inadequate in the near future. We realize that the officers in the Air Force are of the utmost importance to this country-that they should be paid well for their endeavors that they should live in good homes, and that they should be satisfied in the Air Force so that they will stay in the Air Force. But we would like to point out that there can be grave danger in creating standards for Air Force personnel which are so far above the standards of the average American in his average community. In most instances at Offutt, the military people living near the base have as good homes, if not better, than the civilian population in the area, and while rental and sale units may be slightly above the national average, those values are no higher for the military people than for the civilian population.

CAPEHART HOUSING IS PUBLIC HOUSING

During the course of our survey in the Sarpy County area contacts were made with many of the military people. For obvious reasons, it is impossible for us to quote them, but many of these families while in the Air Force much prefer to live as nearly normal a life as possible. They like to have their own gardens, to visit over the back fence with their next door neighbor, to take part in community activities, to belong to the PTA, to raise their children in a normal way and to be associated with the civilian population. They like to attend the same churches and movies to become a part of the community.

A great many of these military people have told members of this group that they would much prefer not to have to move into Capehart housing.

The same thing can be said for the civilian population of Sarpy County. They would much prefer to have the military integrated into community life than to have a separate military community established.

The committee believes sincerely that a military community of 5,000 people would cause many problems which are not now existent. They believe that any socialized housing project is detrimental to the best interests of the community as a whole.

Further, the thinking people of the area realize that if Capehart is extended and occupied by military personnel that it will tend only to increase the tax burden of the civilian. The land on which Capehart is located is tax free and yet the people living in Capehart will be using the same streets, the same parks, the same facilities that the civilians pay to maintain. This will eventually be a source of friction.

Speaking of taxes, the committee has estimated the tax loss to Sarpy County. Based on $16,500 per unit which does not include the cost of the land, the presently authorized 616 units will cost approximately $10 million. Nebraska assesses on the basis of approximately 35 percent of full value, thus, we have an assessed valuation of $3 millions. The Sarpy County levy is about $50 per $1,000 of valuation. Thus, the number of Capehart units now authorized if built by private contractors would add $175,000 to the amount collected in real property taxes. The 800 units now requested will escape an additional $225,000