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in 1988 as in 1987..0f the 121 new -home starts in 1989, 30 were developed in the urban area Discussions with contractors and developers in the City brought forth the concern that the flattening of ' growth in the urban area was due primarily to the limited supply of quality lots remaining in the urban service area The permits issued for sewered and non - sewered areas indicate that approximately 55% of the lots developed in 1987 and 1988 are in the non- sewered area and 45% are in the urban area _ In 1989, only. 25% of new housing starts were in the urban area with the remainder occurring in the unsewered "rural" area The City desires a greater emphasis on development within the sewered urban area. In order to achieve the desired emphasis on development within sewered areas, an adequate supply of residential land must be available within the MUSA area By assuring an adequate supply, the City can achieve multiple goals consistent with regional policies. They are Provide a variety of housing opportunities within the Community in terms of development patterns, land use, and living styles. Encourage growth within the urban area by providing quality development opportunities. At the same time, development pressures within the rural area may be reduced. Enhance the City's economy by providing a growth oriented environment which encourages development in an orderly manner. Capture some of the urban development activity occurring in communities outside of the seven county area due to the leap- frogging caused by restricted development opportunities on the fringe of the Metropolitan Region. 140 acres of land that is zoned residential and is within the 1990 MUSA are currently undeveloped. Discussions with landowners indicate that the majority have no interest in developing this land in the near future With less than a one year supply (approximately 90 lots) of available urban lots, it became imperative for the City to expand the MUSA area to bring additional land into development by willing landowners. The expansion also should help keep the price of urban lots lower by increasing supply thereby helping to achieve both City and Regional goals of affordable housing. Figure 3 illustrates the MUSA 2000 expansion for which 200 acres were approved in July, 1989 and for which 205 acres were conditionally approved pending this submit. Since the MUSA expansion was approved in 1989, one subdivision has been partially developed bringing 44 new urban lots to the market with a future phase increasing to 73 lots. Additionally, plans are in the design stage for trunk sewer and water extension to serve five new 8