Watford City invests $18M in daycare to address housing and workforce challenges

The Senate Appropriations - Government Operations Division III convened on January 27, 2025, to address pressing issues related to housing and community development in North Dakota, particularly in the rapidly growing areas of McKenzie County and Watford City.

The meeting began with a discussion led by Daniel, a representative from McKenzie County, who highlighted the significant economic growth in the region due to local resources. He emphasized the urgent need for new housing developments to accommodate the increasing population. Daniel noted that daycare services have become a critical focus, with the county commission allocating $18 million for a new daycare project to meet community needs. He mentioned that the city of Alexander is also investing in its own daycare facility, which will provide 70 new seats in a town of just 300 residents, indicating a strong demand for such services.

Following this, Venita Best, the Community and Business Development Director from Watford City, addressed the committee. She shared a poignant story about a 15-year housing search faced by residents, illustrating the persistent housing shortage in Western North Dakota, particularly in cities like Dickinson, Williston, and Watford City. Best pointed out that the region's housing challenges are compounded by a lack of skilled labor, as many builders are drawn to the more lucrative energy sector. This situation leads to inflated housing costs, making it difficult for the local workforce to find affordable options.

Best urged the committee to consider providing more flexibility in funding programs to address these issues. She explained that while the city and county collaborate on projects, the financial capabilities differ significantly, limiting the city's ability to incentivize housing development effectively. She highlighted the stark contrast in rental prices, noting that while some areas report $800 rental rates, comparable housing in Watford City could cost between $2,500 and $3,500 for a three-bedroom home.

The meeting concluded with a call for continued support and innovative solutions to tackle the housing crisis in the region, emphasizing the need for collaboration between local governments and state appropriations to foster sustainable community growth.