2020-06-15 Regular Meeting
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, JUNE 15, 2020 PAGE 564
ASSEMBLY
The New Hanover County Board of Commissioners met in Regular Session on Monday, June 15, 2020, at
9:00 a.m. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington, North
Carolina.
Members present: Chair Julia Olson-Boseman; Vice-Chair Patricia Kusek; Commissioner Jonathan Barfield,
Jr.; Commissioner Woody White; and Commissioner Rob Zapple.
Staff present: County Manager Chris Coudriet; County Attorney Wanda M. Copley; and Clerk to the Board
Kymberleigh G. Crowell.
INVOCATION AND PLEDGE OF ALLEGIANCE
Pastor Bryan McGee, Rock Church, provided the invocation and Commissioner Barfield led the audience in
the Pledge of Allegiance to the Flag.
APPROVAL OF CONSENT AGENDA
Chair Olson-Boseman requested a motion to approve the Consent Agenda as presented.
Commissioner Zapple requested that Consent Items #3 Adoption of Amendment to Chapter 23
Environment of the New Hanover County Code of Ordinances and #7 Adoption of Budget Amendments be removed
from the Consent Agenda for further discussion and consideration.
Hearing no other comments, Chair Olson-Boseman requested a motion to approve the remaining items on
the Consent Agenda.
Motion: Commissioner Zapple MOVED, SECONDED by Vice-Chair Kusek, to approve the remaining items on the
Consent Agenda as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY.
CONSENT AGENDA
Approval of Minutes – Governing Body
The Commissioners approved the minutes of the Regular Meeting of June 1, 2020.
Approval of Grant Application to the U.S. Department Justice, Bureau of Justice Assistance, Paul Coverdell Forensic
Science Improvement Grants Program – Sheriff’s Office
The Commissioners approved the submission of a grant application to the U.S. Department Justice, Bureau
of Justice Assistance, Paul Coverdell Forensic Science Improvement Grants Program. The grant would fund the salary
and fringe of a Drug Chemist position for two years, $160,000; and training for four or more lab personnel who will
be responsible for testing seized drugs, $81,000. Total amount of grant request is $241,000 with no local match. The
Paul Coverdell Forensic grant encourages extending the position beyond the grant cycle; however, it is not
mandatory.
Approval to apply for $12,695.45 in Grant Funds That Have Been Made Available to North Carolina Counties to
Better Assist in Information/Communication Sharing During Times of Emergencies – Emergency Management
The Commissioners approved the request to apply for $12,695.45 in grant funds that have been made
available to North Carolina counties to better assist in information/communication sharing during times of
emergencies. The New Hanover County Emergency Management will apply for FEMA’s EMPG-Supplement grant to
purchase communications equipment to support and implement a DEN (Distributable Emergency Network) for the
mobile command vehicle. This $25,390.90 grant requires a 50% percent in-kind match from the County. The
purchase price for the equipment is $12,695.45. The in-kind match will come from current expenditures of
supplies/services and future (two years) of service expenditures related to the grant project. These federal grant
funds from the Department of Homeland Security are to be used to support emergency management activities
related to the ongoing COVID-19 public health emergency. The period of performance for this grant will be 24
months, starting January 27, 2020 and closing on January 26, 2022.
Approval of Four Donations for Accession into the Museum’s Permanent Collection – Museum
The Commissioners approved a list of four items to be accessioned into the Cape Fear Museum’s permanent
collection. The objects were approved by the Museum Advisory Board at the meeting on March 18, 2020 and a list
of the items is available for review at the Cape Fear Museum.
Approval of April 2020 Tax Collection Report – Tax Department
The Commissioners accepted the Tax Collection Reports of New Hanover County, New Hanover County
Debt Service, and New Hanover County Fire District as of April 2020.
Copies of the tax collection reports are hereby incorporated as part of the minutes and are contained in
Exhibit Book XLII, Page 12.2.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, JUNE 15, 2020 PAGE 565
Discussion and Adoption of Amendment to Chapter 23 Environment of the New Hanover County Code of
Ordinances – County Attorney
In regard to who would give the final approval for the removals, Deputy County Attorney Kemp Burpeau
explained that the amendment would be an important tool, but very rarely used. The existing code related to
nuisance abatements does not address situations where person(s) continue to occupy unsafe, derelict structures
that have no functioning utilities that have not come into compliance after due process of notification to do so. This
would only be done in extreme situations where a structure has been condemned that has not come into compliance
and has been deemed a public health and safety hazard and uninhabitable. The County Manager would have the
final sign off on the matter.
Additional Information: The Commissioners adopted an amendment to Chapter 23 Environment of the New
Hanover County Code of Ordinances. The existing code does not address situations where person(s) continue to
occupy unsafe, derelict structures that have no functioning utilities. In many cases, such buildings are beyond repair
and require demolition and premises must be vacated. This will add a needed tool to the nuisance abatement
process, as it will authorize removal of occupants who will not voluntarily leave the dangerous structure to be
demolished. The amendment was requested by and vetted with the Sheriff's Office.
Discussion and Adoption of Budget Amendments – Budget
In regard to why there has been an increase in medical expenses for county employees by approximately
$1 million as shown on budget amendment 20-079, Chief Financial Officer Lisa Wurtzbacher stated that the County
is self-insured and each month claims are different depending on what medical issues employees have. The amount
shown is due to large claims. What was received in May was for April claims. She does believe it is an anomaly as the
claims typically run fairly consistent and this month was just a bit higher.
In regard to budget amendments for the Senior Resource Center, Commissioner Zapple expressed
appreciation for funds from the North Carolina Meals on Wheels, the Myrtle and R.T. Sinclair, Jr. Charitable
Foundation, and the Families First Coronavirus Response Act (FFCRA) funds for being used to provide 53,000 meals
to County residents in need.
Additional information: The Commissioners adopted the following budget amendments which amend the
annual budget ordinance for the fiscal year ending June 30, 2020:
Senior Resource Center 20-068, 20-074, 20-080, 20-081
Sheriff’s Office 20-070, 20-071, 20-072, 20-073, 20-077, 20-078
Various 20-075, 20-079
Fire Services 20-082
Motion: Commissioner Zapple MOVED, SECONDED by Vice-Chair Kusek, to approve Consent Items 3 and 7 on the
Consent Agenda as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY.
A copy of the ordinance amendment for Consent Item 3 is hereby incorporated as part of the minutes and
is contained in Exhibit Book XLII, Page 12.1.
Copies of the budget amendments for Consent Item 7 are hereby incorporated as part of the minutes and
are contained in Exhibit Book XLII, Page 12.3.
REGULAR ITEMS OF BUSINESS
PARTNERSHIP ADVISORY GROUP (PAG) UPDATE ON LETTERS OF INTENT WITH ATRIUM, DUKE, AND NOVANT
HEALTHCARE SYSTEMS
PAG Co-Chair Spence Broadhurst, along with Vice Co-Chair Dr. Joe Pino, provided an update on the Letters
of Intent (LOIs) with Atrium, Duke, and Novant healthcare systems. The PAG unanimously selected these three high
quality not-for-profit North Carolina health systems after evaluating their abilities to deliver healthcare to the next
generation with 18 plus performance points. Since that time, the PAG has performed in-depth due diligence on the
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proposals and obtained more information about the organizations. During the week of June 8, all three respondents
made presentations to the PAG and public on their respective proposals. Much has been learned about their
commitment to southeastern North Carolina and to NHRMC. The PAG has also learned during this time about each
respondent’s commitment to health equity to address disparities in our communities. It was learned that all three
organizations have far more resources dedicated to health equity with data systems, infrastructure, and personnel
than NHRMC has had the opportunity to do. NHRMC has focused on this issue for years, but the restriction of
resources has always been a challenge. The potential for what the respondents can do here is significant. Since the
last update to the Board, Novant Health, UNC Health, and UNC School of Medicine have announced that they would
work together in a partnership, if Novant Health was chosen as a partner for NHRMC. This announcement ensures
that no matter which path is chosen and if the PAG chooses an organization, there will be medical education
programming and expanded programming moving forward.
A great deal of time has been spent by the PAG throughout this process evaluating the potential of status
quo or internal restructuring against each step of this process. These will continue to be vetted against these three
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proposals and eventually against one. The June 18 meeting of the PAG will primarily be centered around evaluating
status quo, the pros and cons of a restructuring, and then balancing those against any potential partnership. The
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, JUNE 15, 2020 PAGE 566
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July 7 meeting of the PAG will be a continuation of sharing the information of status quo and restructuring as
compared to the three proposals, as well as determining if the members are in a position to move forward with the
next deliverable of making a recommendation to the Board.
In response to Board questions, Vice Co-Chair Pino stated that approximately three weeks ago it was
learned that Novant had successfully entered into an LOI with University of North Carolina (UNC) Health and the
UNC School of Medicine to engage them in the provision of medical education and support well beyond that. In the
very strictest scope, UNC would provide support for UNC School of Medicine's Wilmington campus where currently
there are 12 third year students and roughly six fourth year students. They would be looking to increase this to up
to 30 each year for third and fourth years. However, it goes beyond that to also include support for the development
of other health professions, for example the opportunity to bring the number one School of Pharmacy down here,
the Eshelman School of Pharmacy, the Adams School of Density, and the number two school in the country, the
School of Public Health in order to expand clinical opportunities. There has also been discussion about supporting
the development of residency programs, which today he welcomed 23 new residents to the first day of training. It
allows for the possibility of being able to grow that even bigger and creating an impact here. For example, NHRMC
has six family medicine residents graduate each year. Five of the six are staying in North Carolina and of those five,
three are going to stay in southeastern North Carolina. That improves access to care to the people of southeastern
North Carolina. Taking it another step further, UNC also discussed the opportunity to expand pediatric subspecialty
support in southeastern North Carolina. To put this into perspective, there are roughly 1,000 pediatric
endocrinologists in the United States. We are fortunate to have one here, but that is not enough for the population
served of roughly half a million to three quarters of million people. Having the opportunity to leverage their
subspecialty depth and expertise here in southeastern North Carolina means to those families they do not have to
travel to Chapel Hill or elsewhere to get that subspecialty support for pediatrics. That is generally the thumbnail
sketch that has been provided. The Novant Health CEO has provided assurances to the PAG that he expects to have
the terms of that deal secured within the next week or two.
Commissioner Barfield expressed appreciation for the work of the PAG. His overall concern is, knowing that
the PAG has been evaluating what it calls status quo, that SystemCo is not being looked at as much, which is the
ability of the hospital to borrow money and build outside of the footprint of the County. Before he can support
moving forward, he wants to hear a presentation on just that and what that really looks like. What he wants to see
is what does it look like with what NHRMC is doing now and what does it look like if the County gave the ability to
borrow money outside of the County to build. There is already a teaching system in place, which he thinks is UNC
Chapel Hill. That is what he wants to see so he can measure that against Atrium, Duke, and Novant. He feels the cart
is being put before the horse when the real conversation is around those three entities and not about what the PAG
wants to call the status quo. There are many people in this community that like things, not the way that they are,
but he thinks things that could be improved upon. The hospital has a great system in finding ways to increase the
ability to create greater efficiency. He thinks it has done quite well in terms of helping enlarge the hospital's profit
margin. If a way can be found to have that conversation, then he may be able to support the next steps and he has
not heard that in any presentation. He also does not think the public has really heard that in any presentation
because it has just really been about the six entities that have submitted proposals to the PAG group and that is
where things are centered.
Co-Chair Broadhurst stated he can assure Commissioner Barfield and the Board that the PAG will do that
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and that the information will be forthcoming during the June 18 meeting as the entire meeting is dedicated to what
was just described. Commissioner Barfield stated he wished the PAG had done that before today’s meeting so that
could be the information presented today so he could support the conversation. Again, he has not heard enough
information to make sure that he really wants to support LOIs to the three entities as he has not heard the evaluation
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of the other. Co-Chair Broadhurst stated he understood and that the June 18 meeting is to review and discuss in a
very objective manner the exact opportunities available under status quo, under SystemCo restructuring, and then
what opportunities may be available with a partnership. Again, not any one partnership but a partnership. Those
will be discussed under each of the 18 key measurements that were decided by the PAG as a group and a community
to move forward with in the request for proposal (RFP). Each of the 18 key elements will be compared objectively
based on the information the PAG has as to what can be accomplished under status quo, SystemCo restructuring,
and with some sort of partnership.
As to when the LOIs will be given to Atrium, Duke, and Novant, Co-Chair Broadhurst stated the PAG support
team is having interactions with all three now with proposed LOIs with nothing approved because that is the Board’s
responsibility. However, the conversations are being held with all three and if the PAG comes to a recommendation,
then it will come to this Board, which will then give direction to negotiate, finalize, and sign the LOIs.
Commissioner Zapple stated that he shares a number of Commissioner Barfield’s concerns and again is
making a request for information in writing that shows a plan for restructuring to be able to compare that to the
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three proposals, as well as remaining independent. He would prefer to have the information by June 18, but
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definitely no later than the June 22 public hearing.
As to whether or not there is the ability today to expand the relationship with UNC Health and UNC School
of Medicine without Novant as described earlier, Vice Co-Chair Pino stated yes, but without further support,
honestly, it would not develop. Ways can always be looked for to increase the size and scope of the residency, but
it will cost a fair amount of money. Thus far NHRMC continues to support the residency training programs well above
what the federal government provides support for. It’s been terrific and enables for greater care to be provided to
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more people in our region as a consequence through all four of the residency programs. However, in order to
develop to the scope and scale that was suggested it will take a fair amount of resources at a time where we are all
struggling because of the impact of the pandemic. As to if discussions had been held with UNC about adding a
financial component to the academic part if NHRMC wanted to expand both, he stated he would have to defer to
the PAG support team for that information.
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Commissioner Zapple stated he hopes that discussion can be held before the June 18 PAG meeting as he
continues to hear on the importance and the idea of having a medical school or the academic part of a partnership,
which he absolutely agrees with there being a bright future in that. Another question/concern that continues to
arise is that what this feels to many in the public is that this process is being rushed and is full steam ahead no matter
that we have COVID-19 and civil unrest throughout the entire nation. There is a lot going on and we are still looking
at millions of dollars of losses in our own hospital, as well as health systems across the nation, including the three of
the six that have submitted responses to the RFP. The thought in the public that says and asks why do we not calm
down a little bit, take time to see where everyone lands including those who are making offers of hundreds of
millions if not a billion dollars for NHRMC. Their financial situation may be very much altered in the near and distant
future as well. He asked for Co-Chair Broadhurst to provide insight to these concerns.
Co-Chair Broadhurst stated that he would try to differentiate the facts and opinion. One fact is that this has
been talked about for a year and started with this Board a year ago. That is a fact. His opinion is that a year is a pretty
long time with an issue as important as this. It is also correct it has been an eventful 12 months on a lot of fronts.
However, one thing that has been found at every step of the way, is that the events that are unfolding in front of us
just reaffirm the importance of asking these questions. When we were, and are still, faced with the COVID-19
pandemic in a significant way the PAG took a pause like the whole world did, but it shed light on the impact that has
had on our medical center and on the respondents. When the PAG came back together, it provided the perfect
forum for the members to ask themselves, as well as the NHRMC team, what impact this is having and it is
substantial. It also further reaffirmed how important it is to ask the question of is the medical center being an
independent island the right decision because it does have an effect, how are we working through the pandemic
and what impact is it having, and the impacts have been significant and dramatic. It also provided the opportunity
to ask each of the respondents the same questions. They all have much more size, much more financial cushion,
etc., but it is impacting them as well. However, these are three incredibly financially strong, and strong in so many
other ways, health systems. When all three were asked, they did share how this pandemic has effected them and
explained how they are responding to it, which also gave the PAG a chance to understand their cultures to find out
what is the heartbeat of the organizations. It is known how NHRMC and its 7,500 teammates responded, but the
goal was to find out how these three responded, in addition to the financial questions. It was very informative and
helpful information. What was learned was number one, they have and are weathering through it, it is having an
impact, but their financial strengths are well and their bond ratings are solid. Each was also asked if they are still
committed to their respective responses, because the responses came pre-COVID-19, are they committed
financially, and resource wise in human, data, and technological resources. Without batting an eye, every one of
them responded they were full all in and absolutely committed and continued to give their background and reasons
as was seen in the presentations last week of why they feel that a partnership with NHRMC can be very effective.
The next step was with the social unrest and the tragedy that is happening in our country, which is
intolerable. However, it has opened everyone’s eyes again to issues in our society that need to be dealt with. That
gave a whole fresh conversation to the health equity and social disparities of health conversation that were already
occurring with all three respondents. Co-Chair Broadhurst stated he is proud of what NHRMC has done in this area
and with health equity. It is a top notch committed organization in that area, but it is resource restricted. He hopes
the community is learning that health equity is not about healthcare, it is not just indigent care, and it is not just
charity care. It is the health of the community; it is about providing a healthy community before healthcare becomes
necessary. In so many of our lower income areas and rural areas, there is not access to healthcare nor access to help
the lifestyles that prevent some of the problems that have created indigent care. The three respondents have taken
it to an entirely different level simply because of their awareness and their resources. They provided the PAG case
after case of how health equity is changing their communities, where they've been involved, and testimonials were
heard from other hospitals that have partnered with them talking about the changes that those entities have made
in their communities that have just fundamentally changed health equity. Health equity is not just indigent care and
charity care and all three respondents are industry leaders in those areas. He believes NHRMC’s charity care
threshold is 200% of poverty level, while at least one of the respondents is 300% and by policy, no one under that
gets a bill from that hospital and another is similar in that manner. Again, it provided the opportunity for the PAG to
ask the questions resulting from COVID-19, questions because of health equity and health disparities, and has given
the group a wealth of information that can be taken into the analysis. When asking for an objective analysis, health
equity is one of the big components of this and much more information as the PAG gives an objective measure across
the board of what can NHRMC do on its own with health equity, what can be done with a restructure under health
equity, and what can a partner potentially bring with health equity. The information will be shown objectively by the
PAG through its evaluation and it will be shared with the Board and the community. In addition to health equity, the
financial situations as a result from COVID-19 are being evaluated, and there is also access to care, the value, the
continuum, etc. This has been worked on for a year and the PAG members feel they committed upfront that they
would take as much time and be as deliberate as necessary, but they have identified and recognized and felt the
reason they were appointed was that the questions need to be asked, now is the time to ask them, not three years
from now, but now. The PAG continues to move forward in that manner and Co-Chair Broadhurst feels like it has
moved forward in a deliberate, yet urgent manner as it is felt this is an urgent question. The group also feels it is
right on the timeline that was set nine months ago when the members were appointed.
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REGULAR MEETING, JUNE 15, 2020 PAGE 568
Commissioner White stated he likes virtually everything about all three proposals. With Atrium Health, he
thinks the behavioral health component is remarkable and the commitment that they would be making, their
culture, and the things that were just pointed out about the health equity. Their proposal is clearly, in his view, better
than the others. Duke Health is a world renowned institution and what they propose about offering services and
bringing services closer to our population base, as opposed to 20% of our population base going up there, is
something that excites him about the future and about access. With Novant Health, the valuation they have put on
the books and the partnership with UNC-Chapel Hill. Right now you could flip a three sided coin and no question
that this community, long term, would be better off with any one of these three. However, he also has some concerns
about all three. With Atrium, he wants to know more about the lease component, they brought a novel financing
arrangement, and it is not objectionable to him in anyway. He thinks it is an interesting way to amortize and purchase
something over time, because it frees up some of their cash to do some of the things that they want to do. It is also
different than the other two. With Duke Health, he is concerned they have never participated outside the triad and
in watching them over the years they have participated in competitive efforts against Wake Med and Rex Hospital
and have lost sometimes, and that concerns him a bit. With Novant Health, he wants to know more about their
culture. That is a big component, more so than the money and the valuation. He knows the PAG has vetted these
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things, but if his going to be asked to vote for one of these on July 13, which he hopes and expects to, those are
some of the concerns and issues that are shaping how he views those three primary contenders. We could enter
into an LOI today with any of these respondents and this community would be better off in so many ways,
measurable and immeasurable, than where we are now. That is in no way speaking down to our hospital, it is an
incredible asset, it's self-evident, a good job has been done with it over the years, but we can do better and can take
it to the higher level. He really does not know which respondent he wants right now and really is looking to the PAG
to make the recommendation. On the graduate medical education (GME), he is intrigued by Atrium Health’s Wake
Forest connection, he is intrigued by the access to Duke Medical School, and the UNC-Chapel Hill component. If the
decision were balanced on just the academic component, he is not sure which one is better as all three are pretty
strong. If the decision is money then look at the numbers, but it's not about the money. He thinks it comes back to
the culture and that is an intangible. That is something where more is needed on what does that mean. Those are
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some of the questions that he looks forward to hearing answered Thursday night and on July 13.
Co-Chair Broadhurst stated he knows all five Commissioners have read through the proposals. The
proposals are not identical nor are the institutions. The points raised today are very fair and certainly have been
included along with the many more points along those lines that the PAG has been working through for the last
several weeks. The PAG respects and hears what the Board is saying and the members are having the same
conversations amongst themselves. There are 18 key measurements and under each one there are anywhere from
two to 10 components that are being worked through by the PAG. The PAG is doing the work that has been asked
of it by the Board. They are working through the financial, health equity, cultural, and other aspects in the process.
The PAG’s responsibility is to really delve into all of this and the work is being done including doing on-site and virtual
visits with each of these three respondents. In his opinion, culture is the most important thing that the PAG members
can evaluate because if they get that one wrong, everything else is going to unravel at some point. There are 21
different opinions on the PAG on culture, but again, the work is being done on that and the question is going to be
answered and the other questions expressed by the Commissioners. Between now and the time when the
recommendation is made, it is going to be difficult to answer 120 questions but the PAG is certainly committed to
getting the Board those answers.
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Commissioner Zapple asked about Commissioner White referencing a vote on July 13 and asked if that
had been scheduled as he did not think it was yet. County Manager Coudriet responded that the Board has not, but
certainly the PAG is trying to continue to move forward. It is the opinion of at least the PAG leadership that the work
may well be completed in time to bring forward a recommendation, but the Board has never set a delivery date. The
PAG has not either, but it has governed itself and done the work to ultimately bring closure and offer a
recommendation.
Commissioner Zapple asked if the RFPs were non-binding. He agrees with Commissioner White’s viewpoint
that it is a tremendous treasure chest that each one has proposed, they all have exciting ideas, and the information
that was provided last week was good. However, those are all non-binding and we have not gotten down to exactly
what each would be contractually obligated to do. He feels there is a certain amount of salesmanship that is
continuing to go on, which is part of the process, and he does not mean that in a negative way. However, this is a
tremendously important and complex decision to make. As such, he would hesitate committing to any kind of firm
date at this time of when the Board is going to vote. Important information is still being developed, including the
restructuring plan, as well as the other idea he brought up earlier of what would a relationship with UNC alone look
like if they were open to adding a financial component, along with their existing academics program.
Co-Chair Broadhurst stated he could only address the schedule of the PAG and from the beginning a plan
was laid out that the members thought was achievable that included a delivery of recommendations at certain
points. At the beginning, it was anticipated it would be midsummer of making the final recommendation, but of
course that is just a guideline. He would say the group is on schedule. He confirmed the process is that there are
currently non-binding responses, there are draft LOIs which take those responses to a higher commitment level that
the group is working on, in parallel, with each of the respondents as well as members working on restructuring and
status quo. The PAG’s recommendation, by its charter at whatever point it is made, would be to recommend the
approval of either status quo, restructure, or the recommendation of a LOI with one of the respondents, which again
is at a higher level of commitment. There would then be another period of time where the staff and the attorneys
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take the LOI to a definitive agreement, which is contractual. At that point he believes the Board would consider
approving the definitive agreement, which takes it to the next level in the process.
Hearing no further discussion, Chair Olson-Boseman thanked Co-Chair Broadhurst and Vice Co-Chair Pino
for the update and the entire PAG for the work it has been doing.
PUBLIC HEARING AND APPROVAL OF A DEVELOPMENT AGREEMENT FOR THE REDEVELOPMENT OF THE
GOVERNMENT CENTER
Chair Olson-Boseman opened the public hearing stating pursuant to North Carolina General Statute 143-
128.1C, before considering a development agreement, the Board shall hold a public hearing at which any persons
who wish to be heard may appear. Chief Financial Officer Lisa Wurtzbacher and Property Management Director Sara
Warmuth provided the presentation highlighting the following:
The Government Center redevelopment project: Consider Approval of Development Agreement:
Completed Steps:
August 12, 2019 - Resolution of Critical Need adopted
August 30, 2019 - RFQ advertised
October 22, 2019 - Submittals due
November/December 2019 – Evaluation of Proposals
January 21, 2020 – Memorandum of Understanding approved:
Completed predevelopment activities
Proposed Schedule:
June 2020-January 2021 - Finalize design, complete preconstruction, permitting
January 2021 – Groundbreaking for office building, EOC, 911
June 2022 – Ribbon cutting and move in
July 2022 – Demolition of existing Government Center, groundbreaking for park
March 2023 – Ribbon cutting for park
Development Agreement Components:
Two parcels (approximately 7.5 acres each):
Parcel 1 - Retain ownership
Parcel 2 – Sell for private development after substantial completion of government center
New Hanover County facility:
Ground lease parcel to developer
Developer construct county facility and lease to County
Private development:
Phase 1 – Mixed-use development with workforce housing
Phase 2 – Commercial/office use
New Hanover County lease:
125,000 square foot facility that includes offices and EOC/911 Center
20-year term
Annual lease payment not to exceed $4,507,054
Ownership transfer at end of lease, no additional cost
Private development:
Phase 1 estimated value of $46 million:
Begin construction no later than 2 years after sale of Parcel 2
Phase 2 estimated value of $24 million:
Begin construction no later than 7 years after sale of Parcel 2
20-Year Financial Projections:
Note: Chart above illustrates that the cost to move forward with the public private partnership
lease option is fairly consistent with the price for the County to build and finance a new facility on
its own with a variance of approximately $4.3 million over 20 years and additional estimated tax
revenues of over $18 million for the next 20 years.
Request and Near-term Next Steps:
Hold public hearing
Approve Development Agreement
Negotiate necessary documents such as lease agreement and buy sell agreement
Obtain local government commission approval of lease
In response to Board questions, Ms. Wurtzbacher stated that the Tax Department looked at recent sales
and felt that the $10 million was a fair value. As to whether it would be worth having an independent party perform
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an appraisal and review, she felt it could certainly be done and she would rely on the Legal Department to work that
into the development agreement. She confirmed in years 2021 – 2061, the second twenty years, would be when the
estimated tax revenues of $19 million would be anticipated. She agreed that another way to look at this was that
the County would have a $49 million building that it will end up paying approximately $90 million for over a 20-year
period and that the hope is the anticipated tax revenues will offset the approximately $36 million, which is the
difference between the $49 million and $90 million. She stated that the whole premise is if you look at lease cost
alone, obviously it would be to the County’s advantage to build and finance something itself, but taking into account
those additional revenues that brings the gross cost down to something that is more comparable to if the County
were to just build and finance a new building. She further confirmed that at the end of 20 years, and more so at 40
years, the building will have gone through a good portion of its useful life. However, buildings are typically
depreciated over 40 years and that does not mean it no longer has value.
As to the building maintenance during the lease period, Ms. Wurtzbacher stated as it is a triple-net lease
the County would be responsible for taxes, insurance, maintenance, etc. Regarding the maintenance cost over the
20-year period, Ms. Warmuth stated normally when capital budgeting is done maintenance cost is anywhere
between three and four percent of the total cost per year. That would include utilities, general maintenance,
janitorial services, etc. The maintenance costs would be the same regardless of who did the construction.
In response to Board questions, Ms. Wurtzbacher confirmed it is the $49 million plus the approximately $10
million in maintenance costs over the 20-year period that the County will be responsible for and reiterated that this
is regardless if the County builds it or not. Brian Eckel with Cape Fear FD Stonewater stated his company manages
about three million square feet of buildings, so it looks at all different types of buildings and is familiar with
maintenance costs. The County’s current building is probably around $6 to $7 a foot in maintenance cost because it
is extremely inefficient as opposed to the building his company built directly across the street, the BB&T building, it
is about $3.50 a foot because it is extremely efficient. The proposed building being looked at tonight will probably
also be around $3.50 a foot to maintain 125,000 square feet.
In response to Board questions, Ms. Wurtzbacher explained that as it pertains to section six in the
development agreement where it states that the Board will provide input on the mixed use improvements prior to
construction, it is not binding to receive the input. It was thought the County could not really bind the developer to
what would be built on the private lot. The Board would see the plans, the cost estimates, and have an opportunity
to provide input. As to what type of guarantees the County would have that something inappropriate would not be
put in the private development, the first phase of the private development has to be mixed use and the second
phase is commercial use. She would say that as long as it is within the zoning ordinance and in line with that, she
does not think the County would have any recourse if a certain type of business goes in there. She is open to adding
language to the development agreement containing language to provide the control, but would want the developer
to weigh in on it.
A brief discussion was held about what types of businesses would be allowed in the private development.
Mr. Eckel stated that he can assure the Board that a gentlemen’s club would not be allowed and is willing to work
with staff to draft a list of permitted and excluded uses. He is agreeable with having the property appraised by an
independent MAI appraiser, but thinks that would work to his company’s benefit. Currently, his company is paying
$22,000 a unit per door, which is how land is calculated for multi-family. That is the highest land price that has ever
been paid in this County. The second highest is the one his company just closed on directly behind his office on
Military Cutoff Road at $21,000 a unit per door. Mr. Eckel further stated that he will commit to staying with the deal
he made and agree to paying the greater of the appraised value or the $5 million. He thinks the appraisal will come
in around $4 million.
In response to Board questions, Mr. Eckel stated that the Ten Pin Alley property owner is planning a major
renovation and is using LS3P and Thomas Construction and has kept pace with his company on planning. Mr. Eckel’s
company has been in constant communication with Ten Pin Alley and the gentlemen’s club as all are part of
restrictive covenants across easements and parking. Ten Pin Alley is part of the site plan and is shown at the very
top of the plan as an L-shaped building, but is not part of this deal with the County.
A brief discussion was held about having surface parking rather than a parking deck. Mr. Eckel stated that
it is felt the 250 surface parking spaces is adequate for employees, public, and large functions. There is a potential
for a parking deck in phase three, which would be on the back of the site with a future office building. It will work
for the government center as well as the mixed use building. Due to the nature of the mixed use development on
the second parcel, there will be approximately 350 additional spaces on it. His company has built several apartment
complexes in Wilmington and if you visit any of the complexes, even in this time of COVID-19, about half of the
parking lots are empty during the day. There will be the ability to have overflow parking for the government center
on the second parcel. He explained a parking deck to handle this kind of volume on this site is much more expensive
than surface parking at around $22,000 to $23,000 a stall, if it is built with the architectural details, with the low end
being $14,000. The one NHRMC just built he thinks was around $20,000 a stall. For comparison, at $200,000 an acre
for site work on a surface lot and getting maybe 150 spaces per acre, it is about $4,000 per stall.
Chair Olson-Boseman stated that one person signed up to speak in favor and invited the person to step
forward to speak.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, JUNE 15, 2020 PAGE 571
Dave Spetrino, resident of Walnut Street, stated he was speaking as a member of the City/County
Workforce and Affordable Housing Committee and not as a citizen. The committee has been paying close attention
to every opportunity in Wilmington to look for opportunities to increase height density or to see additional housing.
However, as a citizen he loves idea of a private – public partnership. He is really impressed with this project and is
glad to see it coming together. Most importantly, the committee has had opportunities to share ideas and thoughts
and provide additional encouragement to this group and staff. The committee thinks every situation whether it be
housing, rezoning, or development in the community should include and recognize that there is a component
available that allows for some level of workforce housing to be provided. The challenge of new construction is that
is it the most expensive thing that can be done. The challenge with new housing is it is not realistic to demand or
compel a developer to provide workforce or affordable housing within their development. In this circumstance, he
thinks the committee is most impressed that at least there was some recognition and acknowledgement that
something, even incrementally, is being included in this project to provide workforce housing. That is something the
committee hopes to see going forward and hopes it's a step in the right direction for future projects, whether they
be private or public, or a public-private partnership.
Chair Olson-Boseman thanked Mr. Spetrino for his comments, stated that any written comments that have
been received by 8:00 a.m. today will be incorporated into the official meeting record by the Clerk to the Board, and
closed the public hearing. She then asked if there was a motion to approve the development agreement with Cape
Fear FD Stonewater LLC and authorize staff to execute said agreement and associated closing documents.
Motion: Vice-Chair Kusek MOVED, SECONDED by Chair Olson-Boseman, to approve the development agreement
with Cape Fear FD Stonewater, LLC and authorize staff to execute said agreement and associated closing documents.
Commissioner Zapple stated that he supports the project, but it gives him pause whenever he looks at a
deal because any real estate deal or any deal has a certain amount of risk. The reality is that the County will pay $90
million for a $49 million building. The risk part comes with all of the development that will be happening around
that, which he agrees having a good local architect and developer does provide him confidence. With what has been
seen since the 2010 recession, which includes the volatility of property values and then over the last four months
here, the hope is that all of these things are just one-offs and there will continue to be an increase in growth and
prosperity for this County. That is the foundation of this deal to make that happen.
Hearing no further discussion, Chair Olson-Boseman called for a vote on the motion on the floor. Upon vote,
the MOTION CARRIED UNANIMOUSLY.
Note: No written comments were submitted for this matter.
PUBLIC HEARING AND APPROVAL OF A ROAD NAMING REQUEST BY JORDY RAWL TO RENAME BEACON DRIVE
LOCATED WITHIN THE BEACON WOODS AND HIDDEN VALLEY SUBDIVISIONS, BETWEEN DOWNRIGGER DRIVE AND
SKEET ROAD (SN-115)
Chair Olson-Boseman opened the public hearing and requested staff to make the presentation.
Senior Planner Brad Schuler presented the request by Jordy Rawl to rename Beacon Drive, located within
the Beacon Woods and Hidden Valley subdivisions, between Downrigger Drive and Skeet Road, to Skeet Road. Per
the North Carolina General Statutes, the Board of Commissioners must hold a public hearing to consider road
renaming requests. The developer is currently preparing a petition to turn the roads within Laurenbridge over to the
North Carolina Department of Transportation (NCDOT) for maintenance. During an initial review of the petition,
NCDOT requested that the developer seek the name change for Beacon Drive as there are currently two state
maintained roads of the same name in the County. The other Beacon Drive is located in Ogden near Torchwood
Boulevard. Due to the interconnected streets in the area, the subject road has three different names (Skeet Road,
Beacon Drive, and Downrigger Drive) because it is included within multiple subdivisions. The section named Beacon
Drive proposed to be renamed is approximately 550 feet in length. There are no current homes addressed from
Beacon Drive. The portion of the road to the north will retain the name Downrigger Drive. There is no conflict with
this name elsewhere in the County and there are existing homes with addresses on Downrigger Drive. If approved,
the developer has offered to replace the existing street signs with the new name.
Chair Olson-Boseman thanked Mr. Schuler for the presentation and invited the applicant to make remarks.
Jory Rawl stated that his company constructed a 35-unit subdivision that is fully built and went through the
protocol of dedicating the street back to NCDOT. NCDOT came back with a laundry list of items that included
repairing streets that his company in fact did not install, but made the concessions to upgrade the neighboring roads
as NCDOT will not allow for a road to be turned over to it unless it goes intersection to intersection. When his
company came in to build the subdivision, they joined into one of the stub roads. Stub roads are typically seen at
the end of a subdivision that just tees into the woods. The new road adjoined to a 25 – 35-year-old road that had
never been properly dedicated, so it had broken curbs, potholes, and needed to be resurfaced, His company took
that upon itself with the Laurenbridge development company to make those repairs, and then formalized the SR-1
petition for the road to be turned over. NCDOT then came back with another notice stating there was a road name
conflict. County staff has been really helpful, but this is not really the per usual business, so it has to come before
the Board as a formal petition to have the road name changed over. The name being sought is Skeet Road, which is
the existing roadway which the road conjoins with.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, JUNE 15, 2020 PAGE 572
Chair Olson-Boseman announced that no one signed up to speak in favor or in opposition to the request
and closed the public hearing.
Hearing no further discussion, Chairman Olson-Boseman asked for the Board’s direction on the request.
Motion: Commissioner Zapple MOVED, SECONDED by Vice-Chair Kusek, to approve the renaming of Beacon Drive
in the Beacon Woods and Hidden Valley neighborhoods to Skeet Road as presented. Upon vote, the MOTION
CARRIED UNANIMOUSLY.
A copy of the order is hereby incorporated as part of the minutes and is contained in Exhibit Book XLII, Page
12.4.
PUBLIC HEARING AND APPROVAL OF REZONING REQUEST BY BLUE RIDGE ATLANTIC COMMUNITY DEVELOPMENT
ON BEHALF OF THE PROPERTY OWNERS, BHC PROPERTIES, LLC, TO REZONE APPROXIMATELY 4.77 ACRES OF LAND
LOCATED AT 205 AND 217 MIDDLE SOUND LOOP ROAD, FROM R-15, RESIDENTIAL DISTRICT, TO (CZD) RMF-M,
RESIDENTIAL MULTI-FAMILY MODERATE DENSITY DISTRICT, IN ORDER TO DEVELOP 72 SENIOR LIVING MULTI-
FAMILY DWELLING UNITS (Z20-06)
Chair Olson-Boseman opened the public hearing and requested staff to make the presentation.
Planning and Land Use Director Wayne Clark stated before the presentation begins, he wanted to review
enhancements that have been made to the staff materials for the balance of the planning items on the agenda.
Three items that have been changed are: 1) the addition of a map that shows access in and out of a site for use while
considering traffic impacts of a proposal; 2) the addition of a map that will show subdivisions in the area that are not
yet built-out, but have been approved and houses are under construction for use in looking at future impacts in an
area, and how that may relate to other projects being considered; and 3) the addition of context and compatibility
explanations and that will be seen in the text description of the staff summary and will be reflected in staff
presentations.
Senior Planner Brad Schuler presented the request by Blue Ridge Atlantic Community Development on
behalf of the property owners, BHC Properties, LLC, to rezone approximately 4.77 acres of land located at 205 and
217 Middle Sound Loop Road, from R-15, Residential District, to (CZD) RMF-M, Residential Multi-Family Moderate
Density District, in order to develop 72 senior living multi-family dwelling units. The site is located near the Ogden
commercial node, east of the intersection of Market Street and Middle Sound Loop Road, and will have direct access
to Middle Sound Loop Road. The site is an undeveloped wooded tract of land. The 72 units will be located within
one three-story building with a proposed height of 42 feet near the northwestern portion of the site. The proposed
building and driveway location have been positioned to save existing large trees, including several large oaks, along
Middle Sound Loop Road. If approved, the development of the site must comply with the standards of the multi-
family zoning district and other applicable regulations, including buffering and stormwater standards. In response
to the Planning Board’s recommendations, the applicant has updated the conceptual plan to increase the rear
setback from a minimum of 51 feet to a minimum of 73 feet. This exceeds the minimum 29-feet setback required by
the Unified Development Ordinance (UDO). In addition, the applicant has added a sidewalk connection from the
proposed driveway to the western property line at the abutting church property.
As currently zoned, the subject site would be permitted a maximum of 12 dwelling units under the
performance residential standards for the R-15 zoning district. A development of this scale would generate about 10
trips during the peak hours. The trips generated from the proposed 72 senior living apartments would increase the
estimated trips generated from the site to about 15 – 20 trips during the peak hours. In review of the primary routes
to arterial streets, Mr. Schuler noted that in addition to traveling to Market Street via Middle Sound Loop Road,
people can travel to Military Cutoff via Red Cedar and Covil Farm Roads. Residents can also travel to the Big Lots
shopping center via Darden Road and Wendover Lane. There have been three traffic impacts analyses (TIA)
conducted in the area. A recent TIA conducted in 2019 found that the intersection of Middle Sound Loop Road and
Market Street operates at an acceptable level of service (LOS). There are also two state transportation improvement
(STIP) projects under construction in area with the Market Street Median project and the Military Cutoff extension.
Both projects are expected to be completed by 2023. There are currently three active subdivisions being developed
in the area with about 40 homes left to be completed.
Generally, development under the R-15, Residential District, consists of single-family housing with lot sizes
typically ranging from 7,000 to 12,000 square feet. The RMF-M, Residential Multi-Family Moderate Density District,
which is one of the newer districts, provides for multi-family housing, whether it be for apartments or condos. The
district allows up to 17 dwelling units per acre (du/ac), which would allow for the development of typical three-story,
24-unit multi-family buildings. The differences with this application is that all of the units will be within one building
and it will be limited to senior citizens. This transition is appropriate for the area because the site is located directly
adjacent to an area designated as an Urban Mixed Use node that provides for a variety of commercial uses and a
residential density of 16 to 36+ units per acre. The site is located near the entrance to the Middle Sound area and
has direct access to Middle Sound Loop Road. The proposed use will be an age restricted, low income tax credit
facility that has a lower impact on traffic and schools than typical multi-family developments. Similar to the nearby
White Oaks development, the proposed senior apartments will provide an appropriate transition from the more
intense commercial node at Market Street into the Middle Sound community.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, JUNE 15, 2020 PAGE 573
The 2016 Comprehensive Plan classifies the property as General Residential, however, the site abuts the
Urban Mixed Use place type, abuts a religious institution, and is nearby to the Publix shopping center. While at a
higher density than generally recommended for General Residential areas, the proposed development, which is
located in a transitional area between the General Residential and Urban Mixed Use places, is generally consistent
with the Comprehensive Plan’s intent to transition between higher intensity uses and existing residential areas, to
preserve natural areas, and to provide for a range of housing types, opportunities, and choices. The Planning Board
considered this application at its March 5, 2020 meeting and recommended approval (6-0) with the following
conditions:
1.The residents will be restricted to 55 years of age and older.
2.In addition to the County’s tree retention standards, the property owner shall retain and preserve all
trees as illustrated on the proposed conceptual site plan unless:
The tree has been proven to directly affect the installation, or cause damage to, any required
infrastructure (i.e. water/sewer lines, stormwater, etc.);
The tree is proven to be dead, dying, or severely damaged; or
The tree is in an unsafe condition that may cause harm to the residents or general public.
3.The proposed conceptual plan shall be modified prior to the Board of Commissioners meeting to
increase the rear setback along the northeastern property line.
4.A pedestrian pathway shall be provided within the property connecting the building to the street along
the driveway to help facilitate future access to the businesses located within the Ogden commercial
node.
As the applicant has updated the plan to address conditions three and four, staff is recommending the first two
conditions as shown above be added.
Chair Olson-Boseman thanked Mr. Schuler for the presentation and invited the applicant to make remarks.
Chris Eisenzimmer with Blue Ridge Atlantic Community development on behalf of BHC Properties, LLC,
stated that his company is an economic and community development company based in Wilmington, North Carolina,
and Seattle, Washington. It has been in the business of providing workforce and senior housing across the country
for nearly 50 years and has developed approximately 150 of these exact types of properties, which equates to
approximately 12,000 units. The company is also a long term hold owner-operator, and everything that they develop,
they build and hold for the long term. The majority of the properties that they developed 30 years ago are still in
their REO schedule. When they go into a community the intent is to be there, to stay there, and take a vested interest
in seeing the project succeed for the foreseeable future. One of its biggest missions is to strive to provide Class A
properties for the workforce and the seniors across the country, as it is felt that just because someone may not
necessarily have the same identical income and means as compared to those making significantly more, that they
should not have to sacrifice safe decent affordable housing, and most importantly the amenities and proximity to
healthcare, etc.
Mr. Eisenzimmer discussed the afterthought effect. Wilmington and this County are obviously rapidly
growing. This year the average median incomes (AMIs) were released and a family of four was considered to be in
the AMI range of $81,000. However, during these times of economic growth and expansion, land prices go through
the roof as do construction prices. Oftentimes, the most feasible means of construction becomes luxury Class A
multi-family from a highest and best use standpoint. As a result, you end up with a fairly transient tenant base that
moves from apartment complex to apartment complex, and the outcome is that seniors in the workforce of our
cities can no longer afford to live, work, and thrive in the areas they once did. You now have seniors that are
commuting 20-30 minutes just to have access to amenities, to healthcare, and to the things that his company feels
everyone should have the afforded right to access. Also, during terms of economic downturn such as is currently
being seen now, those who were once are able to afford to live in those luxury high rent apartments cannot
necessarily afford to do so any longer. As such, his company sees a trickledown effect to some of its communities as
well and maintaining their ability to still have access to healthcare, etc. It is felt this project is very conveniently
located along the growth node and commercial corridor, which would provide great access to shopping, groceries,
pharmacy, and everything that is felt to be important in creating long-term sustainable communities.
What is being proposed is 72 units of senior housing. It will be restricted to ages 55 and older through a
deed of restricted covenants, the way that financing works, and it would be restricted to those making between 30%
and 80% of AMI. It is truly a mixed income community with a rent range of $400 up to $1,200. Mr. Eisenzimmer
would say the average is approximately 60% of AMI when everything is calculated out, so the company truly has
approximately 50% of the units reserved for those making 50% or less of AMI. It is not a heavily weighted average
towards the 80% of AMI range. The building will be built green energy certified and all appliances will be energy star
rated. It has been found through their own study and assessment of their properties that there is an approximate
30% reduction in the utility bills to the tenants. That results in additional disposable income for these tenants to be
able to continue to live their lives with the extra disposable income. Several amenities will be provided such as
screened-in porches, on site laundry, media room, exercise rooms, a business center, a fitness center, a library, and
an arts and crafts center all contained within the building. Mr. Eisenzimmer’s company also intends to, like it does
with most of its properties, work to secure a partnership with a local community service provider in order to provide
fitness classes, healthy eating classes, health screenings, and general resident activities to truly become a sustainable
all-inclusive community for the residents in the long term. His company does feel that based on the market research
done and the data being seen, this is a greatly needed resource in the area. He hopes the Board received some of
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, JUNE 15, 2020 PAGE 574
the letters of support that provide evidence to that. Through a survey of the existing communities in the area of
similar nature it was found there are enormous waiting lists on all of these. The hope is to be able to become a long
term part of this community and provide a much needed resource. He then asked Richard Collier to provide the
design specific information for the project.
Richard Collier, Professional Engineer with McKim and Creed, stated in addition to Mr. Eisenzimmer’s
comments it is worth noting the site imaging, saving the mature trees that are on site, and putting this building in a
location allows for as much preservation as possible. As mentioned earlier, the sidewalks are being extended out to
the western property line, all of the plat maps will be with north being to the right in looking at the slides. Originally
before any tree survey was done, the building was in the back corner and when looking at the overlay of the full tree
survey on the site plat, the driveway was in the midst of the trees and the building just wasn't in the correct location
at the time. After bringing the plan to the community meeting and in speaking with all the neighbors, it was
determined that the driveway needed to be shifted. It is now up and out to allow for the preservation on the lower
side of the plan. The building was 51 feet off the rear, which is the northern property line and another 10 feet to the
east off the western property line. Following the Planning Board meeting, the building was shifted another 22-feet
for a total of 73 feet as the Planning Board wanted to add protection to those that are the closest residents to the
north. The western edge was maintained because that location saved the most trees on the western property line.
Some pedestrian seating has also been added along with other site amenities within the development. By shifting
the building, there are a few trees lost on the southern end of it, but it was felt the tradeoff of getting additional
space between the building and the neighbors to the north was a better trade off. There will be 61 trees removed,
but 120 will be saved which includes mature oaks and the other mature vegetation on the site. Mr. Collier then
reviewed slides showing the site buffering, images of what the buildings could look like, etc. and noted the building
would be along the southern property line.
Mr. Collier stated that traffic is always an issue and Middle Sound Loop Road has always had its share of
issues with traffic. He thinks at this point with the improvements that NCDOT has been making, it's starting to
improve at Market Street as the entire intersection was changed with Publix, so it is now starting to move quite a
bit better. The project itself is very low impact with it being a senior living type apartment. There will be
approximately 260 cars per day in the mornings, and in the evenings trips in and out of the site are low numbers of
10 maybe 11 cars. He is not inferring that people 55 and older do not drive. It is more that a lot of times they are not
having to go to work every day so they're not up first thing in the morning going to work or coming home. The set
times are not there so there is a gap in the travel window. Mr. Collier then reviewed slides showing the beginning of
the property on the eastern property line, where the new driveway has been moved to, and Market Street on the
western end of the property and what is surrounding that area. The site has good access in and out of the site. The
project does meet all of the future land use plan merits and the merits of the Comprehensive Plan. The project is
adjacent to the Urban Mixed Use and it is a transitional zone from Urban Mixed Use into the single-family areas. Site
imaging and buffering are preserving the vegetation. The low impact stormwater management is being maintained
and the intent is not to have storm boxes on the lot, but to surface drain to a swale that's on eastern property line.
It would move along and travel to a stormwater management pond that will then retain the stormwater for the
County and the state's rules and start to hold the storm events, so that they are released at something to at least
the preexisting conditions and not make any damage on the downstream end. All of the revisions that were
requested to be done, between the Planning Board and community meetings, have been made. The request is for
the Board to approve the zoning to change it to the RMF-M, Residential Multi-Family Moderate Density District.
Commissioner Barfield stated this is a project that is desperately needed in our community, as there are
very few senior apartment buildings that service those in the $400 and up range. There are only a handful that are
close to a grocery store, so this is a great asset for those folks who will be living there. To see something like this is
a Godsend to so many and is a win-win for our community.
Commissioner Zapple stated it is rare for a project to come forward that includes three written statements
of support, especially in the Middle Sound Loop area. He applauds the efforts put into this project, with saving the
mature trees, increasing the buffering, etc. as those efforts will have huge impacts to the entire community in that
area. In regard to the units, he would like to know how it works with the part that are two bedrooms with up to four
residents when grown children would not be allowed. Mr. Eisenzimmer explained that each unit has to be occupied
by an age restricted tenant. He cannot state with 100% certainty that there will not be two elderly couples that move
into each unit. What he can state is that with the 7,000 senior housing units that his company owns all over the
country, it is rarely seen. Typically, what is seen in the two bedroom units is truly people that are age restricted that
are coming back into reliving some of their youthful days and they go back into having roommates. So you wind up
with two age restricted tenants in that certain situation for nothing more than company. Then they also see couples
that maybe could not necessarily afford to have a two-bedroom luxury apartment and in this situation, they're able
to accommodate a guest bedroom apartment for family that may or may not come to visit or friends that may or
may not come to visit. It’s what they are seeing and at least are very stabilized portfolios.
As to if people under the age of 55 will be allowed to live in one of those bedrooms, Mr. Eisenzimmer
explained that from a regulatory standpoint if the anchor 55 tenant is the one on the lease, then certainly. He thinks
regardless, there are the outliers that are going to try to game the system. He is not going to state that no, they
absolutely cannot let that occur because from a fair housing standpoint, he is not allowed to do that. However, he
can state that there are outliers in the world, but that is not what they typically see in these units and complexes.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, JUNE 15, 2020 PAGE 575
There will be 100% onsite management and maintenance, and then that will dovetail into a services
provider, as well as for onsite landscaping, caretaker, etc. for the property. Great care has been taken in designing
the site from a landscaping standpoint. The property is named with a nod to the live oaks on the site and effort was
to made to maintain that overall greatest aesthetic look to the property.
A brief discussion was held about safeguards of people moving in and bringing younger children to live with
them. Mr. Eisenzimmer explained that regulatory tenants are not allowed to have students and students are not
allowed to live there. The way that the financing works is they have a land use restriction covenant that gets recorded
with the land that runs for a minimum of 15 years and then there is an additional 15-year compliance period. As
such, this property will be used for this intended use, a minimum of 30 or so years, if approved. This is something
that will guarantee this exact use for that period of time. From a safeguard standpoint, inspections are conducted,
maintenance issues are reviewed, assessments for capital upgrades are done, etc. A good job is done in policing to
make sure that there is no overburdening of the units. The way that the land use restriction covenant is done, the
way that the property is guided, and the way that it is looked at by this state, his company has the ability to look at
things to ensure complete compliance because at the end of the day, his company signs on the dotted line for the
guarantees for these covenants to these agreements with the state and compliance has to be maintained to be able
to continue to do this type of business.
Chair Olson-Boseman announced that no one signed up to speak in favor or in opposition to the request
and closed the public hearing.
Hearing no further discussion, Chairman Olson-Boseman asked for the Board’s direction on the request.
Motion: Commissioner Barfield MOVED, SECONDED by Commissioner Zapple to approve the proposed rezoning to
a (CZD) RMF-M district as the Board finds it to be consistent with the purposes and intent of the Comprehensive Plan
because the proposal provides an orderly transition of uses from higher intensity to lower intensity areas, and
provides for a range of housing types. The Board also finds approval of the rezoning request is reasonable and in the
public interest because the proposal would benefit the community by providing diverse housing options and will
preserve existing large trees on the site, with the following staff suggested conditions:
1.The residents will be restricted to 55 years of age and older.
2.In addition to the County’s tree retention standards, the property owner shall retain and preserve all
trees as illustrated on the proposed conceptual site plan unless:
The tree has been proven to directly affect the installation, or cause damage to, any required
infrastructure (i.e. water/sewer lines, stormwater, etc.);
The tree is proven to be dead, dying, or severely damaged; or
The tree is in an unsafe condition that may cause harm to the residents or general public.
Upon vote, the MOTION CARRIED UNANIMOUSLY.
A copy of AN ORDINANCE OF THE COUNTY OF NEW HANOVER AMENDING THE ZONING MAP OF AREA 3
and 8B OF NEW HANOVER COUNTY, NORTH CAROLINA, ADOPTED MAY 18, 1970 and JULY 7, 1972, is hereby
incorporated as part of the minutes and is contained in Zoning Book I, Section 3, Page 19 and Zoning Book II, Section
8B, Page 80.
PUBLIC HEARING AND APPROVAL OF A REZONING AND SPECIAL USE PERMIT (SUP) REQUEST BY BOWMAN
MURRAY HEMINGWAY ARCHITECTS ON BEHALF OF THE PROPERTY OWNER, CORNELIA NIXON DAVIS, INC., TO
REZONE APPROXIMATELY 67.38 ACRES OF LAND LOCATED NEAR THE 1000 BLOCK OF PORTERS NECK ROAD, FROM
R-20, RESIDENTIAL DISTRICT, AND (CUD) O&I, OFFICE AND INSTITUTIONAL DISTRICT, TO (CUD) R-20, CONDITIONAL
USE RESIDENTIAL DISTRICT; AND OBTAIN A SUP TO EXPAND THE EXISTING CAMPUS AND ESTABLISH A
CONTINUING CARE RETIREMENT COMMUNITY WITHIN THE AREA PROPOSED TO BE REZONED
Chair Olson-Boseman opened the public hearing and requested staff to make the presentation.
Planning Manager Ken Vafier presented the request by Bowman Murray Hemingway Architects on behalf
of the property owner, Cornelia Nixon Davis, Inc., to rezone approximately 67.38 acres of land located near the 1000
block of Porters Neck Road, from R-20, Residential District, and (CUD) O&I, Office and Institutional District, to (CUD)
R-20, Conditional Use Residential District. The proposal is to expand the campus and consolidate all services under
one zoning district in accordance with the UDO definition of a Continuing Care Retirement Community. As a
conditional use rezoning request, this will be a two-part hearing, consisting first of the legislative hearing and vote
on the rezoning of the site, in which the Board will make a decision on the proposal being 1) consistent with the
Comprehensive Land Use Plan and 2) reasonable and in the public interest. This will be followed by the quasi-judicial
hearing and vote on the request for the special use permit (SUP) to allow a continuing care retirement community.
The Board’s decision must find that the four conclusions for SUP approval are being met with findings supported by
competent, material, and substantial evidence provided either as part of the record in the agenda packet and/or
testimony from persons with standing. In order for the CUD request to be approved, both components will have to
be approved.
The site is located in the northeastern portion of the County, specifically in the Porters Neck area. It is just
northeast of the roundabout on Porters Neck Road, Edgewater Club Road, and Shiraz Way. The subject property
consists of three tracts totaling approximately 67.38 acres, two of which are currently undeveloped. The 37.44-acre
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, JUNE 15, 2020 PAGE 576
tract on which the current campus lies is zoned (CUD) O&I, receiving that designation over different rezoning
requests from 1992 to 2012. The adjacent undeveloped tracts total just under 30 acres and are zoned R-20. The
general zoning pattern in the vicinity is predominantly R-20 with some areas of R-15 closer to Market Street. In the
aerial photography of the site, one can see the existing land use pattern which is largely single-family detached.
Plantation Village, an adjacent senior living complex, lies directly to the east. Mr. Vafier provided a brief history of
the Davis complex noting that it was originally constructed as a skilled nursing hospital in 1968, before zoning
regulations. Since the initial construction, the facility has undergone a series of expansions under various procedures
including rezonings, SUPs, and modifications to those approvals to its current state, which consists of a 179-bed
skilled nursing facility, a 123-unit assisted living facility, a pharmacy, administrative buildings, parking areas, and
open space areas.
The applicant is now proposing an expansion to the existing campus on two adjacent parcels that will consist
of a four story, 50-foot tall, 150-unit independent living multi-family building, 32 senior living duplex units, a 25,000
square foot wellness and amenity center, a 10,000 square foot central services building, and a memorial garden. In
addition, the replacement and relocation of the existing stormwater retention pond to an adjacent 12.02-acre parcel
is proposed. A new infiltration basin will be constructed on a portion of the parcel to the southeast of the existing
campus. This facility will be designed to accommodate the County’s 100-year storm event, which consists of a design
capacity capable of retaining a minimum of 10 inches of rainfall over a 24-hour period. The remainder of this tract
will be preserved for conservation.
The applicant’s team conducted a technical memorandum to assess trip generation and distribution, and
found that the additional 182 dwelling units will result in an additional 16 AM peak hour trips and 35 PM peak hour
trips. This is typically lower than we would see with a single-family or multi-family development due to the nature
of congregate care facility and senior adult housing. Under the current R-20 zoning designation, the undeveloped
portions of the site could potentially accommodate up to 57 dwelling units at a density of 1.9 units per acre, which
is approximately 57 peak hour trips. The proposal is a decrease of approximately 41 AM peak hour trips and 22 PM
peak hour trips when compared to if the property were to be developed with single-family residential under the R-
20 standards.
As it relates to the primary routes to arterial streets, there are currently two access points, automated gated
access points each, on Porters Neck Road and Champ Davis Road. With this proposal, one additional automated
gated access point is proposed on the northern side of the site along Futch Creek Road. From these access points,
motorists will be able to traverse west via Futch Creek Road and Porters Neck Road to Market Street, north of the I-
40 interchange and south of that interchange, respectively. Utilizing these two roads, motorists can also traverse
east to the communities of Porters Neck Plantation and Bald Eagle Lane. Two TIAs were assessed with this proposal
in the vicinity, The Oaks at Murray Farms and Waterstone, the details of which are included in the staff report. In
addition, there are two STIP projects in the vicinity, the Military Cutoff extension and the Market Street median
project, both currently scheduled for completion in 2023. There is also a NCDOT project in conceptual stages, which
will consider the installation of an additional southbound exit lane onto Highway 17 onto Market Street. The area
subdivisions under development in this vicinity consists of four: Scotts Hill Village, Village at Plantation Landing, The
Oaks at Murray Farms, and Waterstone, and these total 748 units. Just under 100 of these are currently under
construction or have been built. Mr. Vafier then reviewed various aerials of the site and representative comparisons
of development in the area.
If approved, the rezoning and SUP will consolidate the existing Davis Community buildings and the proposed
expansion into a unified R-20 zoning that is consistent with the surrounding R-20 zoning in the area. The continuing
care components of the Davis Community are not all classified with a residential density like typical multi-family
developments. The proposal would allow a density of 4.5 units per acre for the residential components of the
project. The proposed density is appropriate because it is similar to the 4.2 du/ac density of the adjacent Plantation
Village facility and the Davis expansion will be an age-restricted community that has a lower impact on traffic and
schools than typical multi-family developments.
The proposed expansion of the Davis Community is generally consistent with the 2016 Comprehensive Plan
(Comprehensive Plan) because it is a continuation of a long standing senior living community and its associated
services and has an overall density in line with what is recommended for General Residential areas. This location is
designated within a General Residential place type in the Comprehensive Plan. The Planning Board considered this
application at its March 5, 2020 meeting and recommended approval (6-0) of the application, finding it to be
consistent with the purposes and intent of the Comprehensive Plan because the proposed overall density is in line
with what is recommended for General Residential areas. The Board also found that recommending approval of the
rezoning request is reasonable and in the public interest because the use is appropriate for the General Residential
place type and the proposed expansion is a continuation of a long standing senior living community and its associated
services.
Chair Olson-Boseman thanked Mr. Vafier for the presentation and invited the applicant to make remarks.
Bruce Bowman with Bowman Murray Hemingway Architects and representing the applicant, the Davis
Community, shared a video that addressed the history and background of the community. For the legislative portion
of this matter, approximately 15 years ago his firm helped bring a non-conforming situation from R-20 to O&I C&D,
Conditional District as the Table of Permitted Uses would allow a continuing care retirement community but not
either a skilled nursing or an assisted living by themselves. The proposed project provides the missing component,
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, JUNE 15, 2020 PAGE 577
meets the County’s definition of continuing care retirement community, and allows for a rollback to the R-20 zoning.
The proposed project is consistent with the existing and surrounding properties. There are two entrances on Porters
Neck Road and two on Champ Davis Road. The project will bring in a new exit from the north aligned with Futch
Creek Road, meeting NCDOT criteria. It was also deliberate to plan for the cottages, which are duplexes. There are
32 units, 16 duplex buildings that border the housing in the R-20 zone. It is backyards to backyards in trying to be
compatible, to scale, etc. The plan is to also keep all of the service traffic and deliveries processing on the existing
service entrance. Through traffic into the neighborhood will not be allowed. It is essentially a gated community, but
gated in the sense of keeping wanderers in rather than others out. The large element of this project is the four-story
multi-family senior living and then adjoining that there would be a wellness center. The feedback from the
community meetings was very good. He feels that there will be some of the neighbors coming in via the bike and
trail access to use the wellness center, the pool, or the restaurants as members. The trails will actually help keep
some traffic off the road.
As this development has been in existence for approximately 30 years, there really is no stormwater
management. It was a low density development and the asphalt and roofing was non-compliant because of the age.
About 12 years ago, a wet pond was installed for a 25-year storm. Geographically that does not work well for the
Davis community now and it will be filled in and a new pond in a different location will be installed to allow for
infiltration to a 100-year storm event. The old wet pond is mostly dry. The forebay remains wet because of it being
low in the groundwater, but the soils are terrific for percolation and this is a better way to do it.
Mr. Bowman stated the Davis Community has been a good steward to its neighbors and feels this project
will potentially be an improvement to neighboring property values. More will be presented on that and on the traffic
under the SUP portion, should this portion be approved by the Board.
In response to Board questions, Mr. Bowman stated that the wellness center will be open to membership.
He thinks there would be an age restriction or some sort of policy as there are no daycare provisions, etc. This is a
high density pocket of seniors with Plantation Village next door and the other developments. He confirmed that the
TIA took into account deliveries as well as employees. The employee shift changes are staggered around AM and PM
peak loads so there is an evening out and service deliveries can be scheduled to also wrap around the peak times,
including trash removal. There are over 400 employees and of those, 105 are on the largest shift. As pointed out by
Mr. Vafier, if the property to the rear that is being added into the developed were to be developed as currently
zoned, it would bring a greater amount of AM and PM load traffic.
A brief discussion was held about the TIA only taking into consideration a one block area along Porters Neck
Road and Futch Creek Road and concerns about the intersection of Market Street and Porters Neck Road. Mr.
Bowman noted the traffic loads were included in the study. The roundabout installed by NCDOT has much improved
throughout in the area. He then asked Tim Lowe with Davenport Engineering to speak about the traffic.
Mr. Lowe stated his firm was contracted to look at the traffic in the area. While it is not a requirement as
the project is under the 100 threshold, the Davis Community wanted to be good stewards of the area around them.
As it relates to the questions about the intersection of Market Street and Porters Neck Road, that was outside the
limits that were looked at. He can point to the roundabout as that was part of the analysis and the existing conditions
were compared to the future conditions with The Oaks at Murray Farms and the Waterstone development. Then it
was analyzed after the Davis Community was to do this project. It was found there would be a 0.5 second increase
in delay at the roundabout, so it is minimal with the PM peak which is much higher than the AM peak hours which
was only 2.2 seconds. The same would be expected at the Market Street and Porters Neck Road intersection and an
even smaller percentage increase because there is much more traffic volume at the Edgewater Club Road and Porters
Neck Road intersection.
Mr. Bowman added that he thinks that is part of the beauty of this development over regular residential
development, where there are school and work traffic. The shift changes are wrapped around the peak hours and
most people who are out in the community will stay out in the community. Residents do go off campus occasionally,
but not necessarily needing to do so during the peak hours. He thinks it will lessen the impact on the main road than
some of the other residential projects.
Chair Olson-Boseman announced that no one signed up to speak in favor or in opposition to the request
and closed the public hearing.
Hearing no further discussion, Chairman Olson-Boseman asked for the Board’s direction on the request.
Motion: Vice-Chair Kusek MOVED, SECONDED by Chair Olson-Boseman to approve the proposed rezoning
of the subject property to a Conditional Use R-20 district as the Board finds it to be consistent with the purposes and
intent of the Comprehensive Plan because the proposed overall density is in line with what is recommended for
General Residential areas. The Board also finds approval of the rezoning request is reasonable and in the public
interest because the use is appropriate for the General Residential place type and the proposed expansion is a
continuation of a long standing senior living community and its associated services. Upon vote, the MOTION CARRIED
UNANIMOUSLY.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, JUNE 15, 2020 PAGE 578
A copy of AN ORDINANCE OF THE COUNTY OF NEW HANOVER AMENDING THE ZONING MAP OF AREA 5 OF
NEW HANOVER COUNTY, NORTH CAROLINA, ADOPTED JULY 6, 1971, is hereby incorporated as part of the minutes
and is contained in Zoning Book I, Section 5, Page 83.
Chair Olson-Boseman stated that the matter will now move to the second part for a request by Bowman
Murray Hemingway Architects on behalf of the property owner, Cornelia Nixon Davis, Inc., to obtain an SUP to
expand the existing campus and establish a continuing care retirement community within the area proposed to be
rezoned. She opened the public hearing and announced that the SUP process requires a quasi-judicial hearing;
therefore, the Clerk to the Board must swear in any person wishing to testify. She requested all persons who signed
in to speak or who want to present testimony to step forward to be sworn in.
The following persons were sworn in:
Brad Schuler Charles Long
Wayne Clark Amy Schaefer
Ken Vafier Bruce Bowman
Jeff Petroff Phil Tripp
Jim Iannucci Tim Lowe
Chair Olson-Boseman further stated that a presentation will be heard from staff and then the applicant
group and the opponents group will each be allowed fifteen minutes for presentations and an additional five
minutes, if necessary, for rebuttal. She then asked Mr. Vafier to begin the presentation.
Mr. Vafier stated in proceeding on to the SUP component of the request, again the applicant is requesting
approval of a continuing care retirement community, as defined in the UDO for both the existing campus, and the
proposed expansion of the site under the R-20 zoning district. Mr. Vafier read the following into the record:
The primary building would be the new multi-family independent living building, this would be a 150 unit,
four story, maximum 50-foot-tall building with the connected wellness center. The memorial garden and additional
open spaces and parking areas are also in this location. The new access point across from Futch Creek Road is shown
on the northern part of the site. This will be subject to NCDOT driveway permitting requirements to ensure that all
site triangle access points and radiuses are met for safety. The 32-single family attached units are on the western
boundary. Mr. Bowman alluded to the central services building which will house service deliveries, receiving,
shipping, laundry, maintenance and storage. The truck traffic entering the site will be restricted to a specific location
away from their internal service vans and delivery trucks that will navigate internally through the site to make their
deliveries and perform their duties. The relocated stormwater management system is on the southeastern parcel of
the site. All impervious surface runoff will be retained on the site via conveyance to the new infiltration basin, or in
one of several BMPs that are proposed to be installed, including swales, ditches, depressions, storage areas under
parking lots, rain barrels, rain gardens, etc. throughout the campus. The four required conclusions for an SUP
approval are: 1) the use will not materially endanger the public health or safety; 2) the use must meet all required
provisions of the UDO; 3) the use will not substantially injure the value of adjoining or abutting property; and 4) the
proposal has to be consistent with the Comprehensive Land Use Plan for these conclusions. The four conclusions,
again, must be supported by findings of fact based on competent material and substantial evidence. Staff and the
applicant have provided preliminary findings of fact both in the staff report and in the submitted narrative based
solely on the information provided to date. The Board has the discretion to modify or add additional findings, based
on the evidence provided during this public hearing. Mr. Vafier then reviewed the staff proposed findings, which he
introduced into the record:
Required Conclusions for SUP Approval:
Conclusion 1: The Board must find that the use will not materially endanger the public health or
safety where proposed and developed according to the plan as submitted and approved:
The site will be accessed from Porters Neck Road, Futch Creek Road, and Champ Davis Road,
all of which are maintained by the NCDOT.
Based on the Institute of Traffic Engineers Trip Generation Manual, the proposed use is
estimated to generate an additional 16 trips in the AM peak and 35 trips in the PM peak.
The subject property is located in the New Hanover County North Fire Service District.
The site is not located within any Special Flood Hazard Area.
Water and sewer services must be provided and designed in accordance with CFPUA’s
standards. CFPUA has indicated water and sewer capacity is available and a Utility Plan Review
is required to verify provision of services.
Stormwater retention will be provided with a design capacity capable of accommodating the
100-year storm event, exceeding the minimum requirements of the New Hanover County
Stormwater Ordinance.
Conclusion 2: The Board must find that the use meets all required conditions and specifications of
the Zoning Ordinance:
The site is proposed to be zoned (CUD) R-20, Residential District.
Senior Living Options, specifically a Continuing Care Retirement Community, are allowed by
special use permit in the R-20 zoning district, subject to supplemental standards.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, JUNE 15, 2020 PAGE 579
The conceptual site plan has been reviewed preliminarily by the Technical Review Committee
and complies with all applicable technical standards in Section 4.3.2.B.5, Senior Living Options,
of the Unified Development Ordinance.
Conclusion 3: The Board must find that the use will not substantially injure the value of adjoining
or abutting property or that the use is a public necessity:
The surrounding area generally contains single-family housing, with a Continuing Care
Retirement Community, Plantation Village, to the east.
Bufferyards must be provided between the development and adjacent residential property.
To date, no evidence has been provided to show that the proposed development will
substantially injure the value of adjoining or abutting property.
Conclusion 4: The Board must find that the location and character of the use if developed according
to the plan as submitted and approved will be in harmony with the area in which it is to be located
and in general conformity with the plan of development for New Hanover County:
The Davis Community has operated as a skilled nursing facility since 1966. Over the years, it
has been expanded with a variety of additional facilities and services, however it has been
comprised of office, institutional, and medical land uses since its inception.
The property is located in the General Residential place type as classified in the 2016
Comprehensive Plan.
The proposal is consistent with the recommended uses and densities of the General
Residential place type.
The requested 4-story building is taller than the 3-story buildings included in the guidelines
for this place type. However, the proposed height of the independent living building is similar
to the height of nearby structures in the Plantation Village community.
th
The Planning Board considered the application at its March 5 meeting and recommended approval (6-0),
with the staff proposed findings as well as the proposed findings that the applicant has made in “Attachment 3 –
Criteria Required for Approval of Special Use Permit”.
Chair Olson-Boseman thanked Mr. Vafier for the presentation and invited the applicant to make remarks.
Mr. Bowman with Bowman Murray Hemingway Architects and representing the applicant, the Davis
Community, reviewed the location of the 50-foot buffer around the entire property, none of the buildings impact
that, and building heights for the most part are one-story buildings. The Champions building is three-stories and has
been on the property since the late 1990s. The wellness building is one-story and is a little over the 25-foot mark.
The only other building is the multi-story and is the 50-foot maximum height under the senior living guidelines and
it is strategically positioned near the drive so it would be across the street from neighbors, rather than in neighbors’
backdoors. The community meetings were friendly and input provided was much appreciated.
This is a public health facility and there will be a phased development. The pond and central services will
be first and then some renovations to the existing structure that have to be done. It's going to take a couple of years
to fully implement. The applicant has satisfied all the parking calculations, furnished tree surveys, and is in the
process of developing a tree mitigation plan. As shown in the video, the area was all farmland and then planted with
pine trees so there are no real heritage trees here, and there are no concerns about having to transplant or work
around these things. They are relatively small trees and/or pine trees and can be mitigated under ordinance. He then
asked Amy Schaefer with Lee Kaess Legal Services to continue the presentation.
Ms. Schaefer stated she would ask the Board to take note of everything that has been heard in the prior
hearing as well as this hearing. Under an SUP application, the applicant must present sufficient evidence in support
of the application to allow the Board to make findings of fact that support each of the required conclusions. Mr.
Bowman was quite eloquent on the public health and safety. There are less than 100 daily trips being generated, the
project is very close to water and fire services and is in close proximity to multiple different uses. She thinks Mr.
Vafier and Mr. Bowman hit on all of those points. Cal Morgan did an appraisal report and was present at both of the
community meetings as well as the Planning Board meeting. Based on the fact that there has not been any
contention over that, it is asked the Board accept the affidavit of Mr. Morgan’s report and she provided a wet ink
signature copy to the Clerk to the Board as part of the official record and also asked that Mr. Bowman’s PowerPoint
as well as the reports and the affidavit be made part of the record. As to harmony and conformity with the area and
the Comprehensive Plan, she thinks the video clearly showed that the project could not be more in conformity with
the area that grew up around the Davis Community. That is being continued as well at Plantation Village.
Chair Olson-Boseman stated that no one signed up to speak in favor or in opposition to the request.
Hearing no further discussion, Chair Olson-Boseman closed the public hearing and asked for direction from
the Board.
Commissioner Barfield stated that the one point of Ms. Schaefer’s that brings this home is that the area
grew up around the Davis Community and the fact that one man started the whole process in that area. When people
come in and look at developments that have taken place, it is neat when you go back to the beginning of something
and understand how it really got started. It is great to get a bit of that information and history on the community.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, JUNE 15, 2020 PAGE 580
Motion: Vice-Chair Kusek MOVED, SECONDED by Commissioner Zapple to approve the request, as the Board finds
that this application for a Special Use Permit meets the four required conclusions based on the findings of fact
included in the staff summary and applicant’s narrative. Upon vote, the MOTION CARRIED UNANIMOUSLY.
A copy of an order granting a Special Use Permit, the listing the findings of facts, and the applicant’s affidavit
are contained in SUP Book IV, Page 81.
CONSIDERATION AND APPROVAL OF BUDGET AMENDMENT 20-064 TO REDUCE FUNDS FROM THE OFFICE OF THE
STATE BUDGET AND MANAGEMENT (OSBM) - DISASTER RECOVERY OFFICE FROM $2 MILLION TO $200,000
Strategy Analyst Eliza Baldwin provided a review of the Disaster Recovery Assistance program:
Program Overview:
October 2019 – NC OSBM awarded New Hanover County $2 million for Disaster Recovery
Assistance (DRA) grant:
The purpose of these funds was to provide assistance to residents still in need for home repairs
from Hurricane Florence who have low to moderate income
New Hanover County Hurricane Recovery Coordination Office worked with the New Hanover
Disaster Coalition’s Case Management and Construction Committees to identify “unmet needs”
properties to be considered for housing repair/reconstruction:
The focus of these properties was to really identify unmet needs, which means that
homeowners had not yet received any type of funding assistance from any other programs for
hurricane repairs
13 total properties
Eight rehabs/four reconstructions/one acquisition
Program Management Options:
Hire a consultant to manage all aspects of program
OSBM fully manages all aspects of the DRA program:
This model is currently underway in Bladen, Jones, Lenoir, Onslow, and Robeson counties
It was felt that this would really not give the County as much control over the program and it
would not really be able to provide that local perspective because the OSBM staff is based out
of Raleigh and there would not be a local perspective here
Dual Roles: OSBM manages construction and New Hanover County serves as resident advocate
and case manager:
This model is currently underway in Brunswick, Duplin, Pender, and Pitt counties
It was felt this was the better fit knowing there would be dedicated OSBM staff who have
already been working with this program to manage the construction aspects, and County staff
would still be able to have that local perspective here to serve our residents
Recommended Actions:
Recommend reallocating $1.8 million to OSBM to administer construction costs in New Hanover
County
New Hanover County retains $200,000 (10%) for project management costs and to serve as
resident advocate and case manager.
The reallocation of the $1.8 million to OSBM to be used for the much needed repair of the 13 properties
here in New Hanover County will also streamline the County’s funding from the grant directly to the contractors who
are doing the work. That will greatly reduce the risk of delayed or possibly even denied reimbursement to the County.
The remaining amount will be used to handle expenses such as temporary housing or storage for the residents while
their homes are under construction. County staff will be able to work with local partners and agencies as well to
connect these homeowners with other resources that they may need, and will be able to ensure that the much
needed repairs will occur in this County. Staff will also be able to provide the local support and customer service to
residents who are participating in the DRA program.
In response to Board questions, Ms. Baldwin stated that the OSBM staff would be responsible for hiring the
contractors and paying them as work is completed. They would also be responsible for checking in on the work to
make sure that it was being done correctly. It is known that the $200,000 could be used up very quickly for temporary
housing. However, it is also known that not every single family participating in the program will need temporary
housing. Several homeowners have been living with other family and will continue to do so until construction is
completed. That also means the storage is not needed for several homeowners because either the belongings have
already been removed from the home or in some instances, the home was already gutted. Some homes have been
empty for quite some time.
In response to additional Board questions, Ms. Baldwin stated that she will be the case manager. She is
working very closely with the homeowners and OSBM staff, and a very strong relationship has been developed. Work
is also still being done with local agencies here in town, such as Catholic Charities, WARM, and Cape Fear Habitat.
All of these properties came from those agencies’ waiting lists originally. She is also the main point of contact and is
working with the other agencies in town to provide support as well. She confirmed she could commit to providing
the Board an update in six months on this matter.
Hearing no further discussion, Chair Olson-Boseman asked for direction from the Board.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, JUNE 15, 2020 PAGE 581
Motion: Commissioner Zapple MOVED, SECONDED by Vice-Chair Kusek to adopt budget amendment 20-064. Upon
vote, the MOTION PASSED UNANIMOUSLY.
A copy of the budget amendment is hereby incorporated as part of the minutes and is contained in Exhibit
Book XLII, Page 12.5.
COMMITTEE APPOINTMENTS
Appointments to the Airlie Gardens Foundation, Inc. Board of Directors
Chair Olson-Boseman reported that two vacancies exist on the Airlie Gardens Foundation, Inc. Board of
Directors with three applications available for consideration.
Chair Olson-Boseman nominated Charlie Rivenbark. Vice-Chair Kusek seconded the nomination.
Commissioner Zapple nominated Eric Blaesing.
Hearing no further nominations, Chair Olson-Boseman asked for a vote on the nominations on the floor.
Vote Results: The Board voted UNANIMOUSLY to appoint Eric Blaesing and Charlie Rivenbark to the Airlie Gardens
Foundation, Inc. Board of Directors to serve three-year terms with the terms to expire on June 30, 2023.
Appointment to the Cape Fear Community College Board of Trustees
Chair Olson-Boseman reported that one vacancy exists on the Cape Fear Community College Board of
Trustees with one applicant eligible for reappointment and six additional applications available for consideration.
Vice-Chair Kusek nominated Jimmy R. Hopkins for reappointment. Commissioner White seconded the
nomination.
Hearing no further nominations, Chair Olson-Boseman asked for a vote on the nomination on the floor.
Vote Results: The Board voted UNANIMOUSLY to reappoint Jimmy R. Hopkins to the Cape Fear Community College
Board of Trustees to serve a four-year term with the term to expire June 30, 2024.
Appointments to the Cape Fear Museum Advisory Board
Chair Olson-Boseman reported that five vacancies exist on the Cape Fear Museum Advisory Board with two
applicants eligible for reappointment and seven additional applications available for consideration.
Commissioner Zapple nominated Dr. Dennis O. Dixon and Donna Pope for reappointment and Dana Crater,
Ginger Davis, and Eileen O’Malley for appointment. Vice-Chair Kusek seconded the nominations.
Hearing no further nominations, Chair Olson-Boseman asked for a vote on the nominations on the floor.
Vote Results: The Board voted UNANIMOUSLY to reappoint Dr. Dennis O. Dixon and Donna Pope, and appoint Dana
Crater, Ginger Davis, and Eileen O’Malley to the Cape Fear Museum Advisory Board to serve three-year terms with
the terms to expire June 30, 2023.
Appointments to the Cape Fear Public Utility Authority
Chair Olson-Boseman reported that two vacancies exist on the Cape Fear Public Utility Authority with two
applicants eligible for reappointment and five additional applications available for consideration.
Vice-Chair Kusek nominated Joseph Irrera for appointment in the Regular category and Wesley Corder for
reappointment in the Joint Appointee category.
Commissioner Zapple nominated Charles L. Sneeden, Jr. for reappointment in the Regular category.
Commissioner Barfield seconded the nomination.
Hearing no further nominations, Chair Olson-Boseman asked for a vote on the nominations on the floor.
Vote Results: The Board voted UNANIMOUSLY to reappoint Wesley Corder in the Joint Appointee category, pending
consideration by the Wilmington City Council, and Charles Sneeden, Jr. in the Regular category to serve three-year
terms on the Cape Fear Public Utility Authority with terms to expire June 30, 2023.
Appointment to the New Hanover County Alcohol Beverage Control Board
Chair Olson-Boseman reported that one vacancy exists on the New Hanover County Alcohol Beverage
Control (ABC) Board with eight applications available for consideration. The Board is also charged with appointing a
chairman for the ensuing year.
Commissioner Barfield nominated Patrick Koballa for appointment.
Commissioner Zapple nominated Thomas Wolfe for appointment. Commissioner White seconded the
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, JUNE 15, 2020 PAGE 582
nomination.
Vice-Chair Kusek nominated Shannon Winslow. Chair Olson-Boseman seconded the nomination.
Vice-Chair Kusek nominated Mr. William Blair, III to serve as chairman for the ensuing year. Commissioner
White seconded the nomination.
Hearing no further nominations, Chair Olson-Boseman asked for a vote on the nominations.
Vote Results: The Board voted 2 to 3 to appoint Shannon Winslow to the ABC Board to serve a three-year term with
the term to expire on June 30, 2023. Chair Olson-Boseman and Vice-Chair Kusek voted in favor.
Vote Results: The Board voted in the majority to appoint Thomas Wolfe to the ABC Board to serve a three-year term
with the term to expire on June 30, 2023. Commissioner Barfield, Commissioner White, and Commissioner Zapple
voted in favor.
Vote Results on Chairman: The Board voted UNANIMOUSLY to appoint Mr. William Blair, III to serve as chairman for
the ensuing year.
Appointment to the New Hanover County Airport Authority
Chair Olson-Boseman reported that one vacancy exists on the New Hanover County Airport Authority with
fourteen applications available for consideration.
Chair Olson-Boseman nominated Nick Rhodes for appointment. Commissioner Zapple seconded the
nomination.
Commissioner White nominated Stedman Stevens for appointment.
Hearing no further nominations, Chair Olson-Boseman asked for a vote on the nominations on the floor.
Vote Results: The Board voted in the majority to appoint Nick Rhodes to the New Hanover County Airport Authority
to serve a four-year term with the term to expire June 30, 2024. Chair Olson-Boseman, Commissioner Barfield, and
Commissioner Zapple voted in favor.
Appointment to the New Hanover County Commission on African-American History, Heritage and Culture
Chair Olson-Boseman reported that one vacancy exists on the New Hanover County Commission on African-
American History, Heritage and Culture with four applications available for consideration.
Commissioner Zapple nominated Marcus Lacewell for appointment. Commissioner White seconded the
nomination.
Hearing no further nominations, Chair Olson-Boseman asked for a vote on the nomination on the floor.
Vote Results: The Board voted UNANIMOUSLY to appoint Marcus Lacewell to New Hanover County Commission on
African-American History, Heritage and Culture to serve an unexpired term with the term to expire August 31, 2021.
Appointment to the New Hanover County Cooperative Extension Advisory Council
Chair Olson-Boseman reported that one vacancy exists on the New Hanover County Cooperative Extension
Advisory Council with two applications available for consideration.
Commissioner Zapple nominated Dietrich J. Blum for appointment. Chair Olson-Boseman seconded the
nomination.
Hearing no further nominations, Chair Olson-Boseman asked for a vote on the nomination on the floor.
Vote Results: The Board voted UNANIMOUSLY to appoint Dietrich J. Blum to New Hanover County Cooperative
Extension Advisory Council to serve an unexpired term with the term to expire December 1, 2020.
Appointment to the New Hanover County Non-County Agency Funding Committee
Chair Olson-Boseman reported that three vacancies exist on the New Hanover County Non-County Agency
Funding Committee with one applicant eligible for reappointment and two additional applications available for
consideration.
Vice-Chair Kusek nominated Fred Gainey in the At-Large category for reappointment. Commissioner White
seconded the nomination.
Hearing no further nominations, Chair Olson-Boseman asked for a vote on the nomination on the floor.
Vote Results: The Board voted UNANIMOUSLY to reappoint Fred Gainey in the At-Large category to the New
Hanover County Non-County Agency Funding Committee to serve a three-year term with the term to expire June
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, JUNE 15, 2020 PAGE 583
30, 2023.
Appointments to the New Hanover County Nursing Home Community Advisory Committee
Chair Olson-Boseman reported three vacancies exist on the New Hanover County Nursing Home
Community Advisory Committee with one applicant eligible for reappointment.
Commissioner Zapple nominated Faye Jacobs for reappointment. Commissioner Barfield seconded the
nomination.
Hearing no further nominations, Chair Olson-Boseman asked for a vote on the nomination on the floor.
Vote Results: The Board voted UNANIMOUSLY to reappoint Faye B. Jacobs to the New Hanover County Nursing
Home Community Advisory Committee to serve a three-year term with the term to expire June 30, 2023.
Appointments to the New Hanover County Parks and Recreation Advisory Board
Chair Olson-Boseman reported that two vacancies exist on the New Hanover County Parks and Recreation
Advisory Board with one applicant eligible for reappointment and seven additional applications available for
consideration.
Commissioner Zapple nominated Nicholas J. Leger for reappointment and Malik Shabazz for appointment.
Commissioner Barfield seconded the nominations.
Hearing no further nominations, Chair Olson-Boseman asked for a vote on the nominations on the floor.
Vote Results: The Board voted UNANIMOUSLY to reappoint Nicholas J. Leger and appoint Malik Shabazz to the New
Hanover County Parks and Recreation Advisory Board to serve three-year terms with the terms to expire June 30,
2023.
Appointments to the Parks Conservancy of New Hanover County, Inc. Board of Directors
Chair Olson-Boseman reported that four vacancies exist on the Parks Conservancy of New Hanover County,
Inc. Board of Directors with three applications available for consideration.
Commissioner Zapple nominated Mark Ihnat for reappointment and Philip White for appointment to serve
three-year terms and Kagney Kellam for appointment to serve the unexpired term. Commissioner Barfield seconded
the nominations.
Hearing no further nominations, Chair Olson-Boseman asked for a vote on the nominations on the floor.
Vote Results: The Board voted in the majority to reappoint Mark Ihnat and appoint Philip White to serve three-year
terms with the terms to expire June 30, 2023 and appoint Kagney Kellam to serve an unexpired term with the term
to expire June 30, 2021 to the Parks Conservancy of New Hanover County, Inc. Board of Directors. Chair Olson-
Boseman, Vice-Chair Kusek, Commissioner Barfield, and Commissioner Zapple voted in favor.
PUBLIC COMMENT ON NON-AGENDA ITEMS
Chair Olson-Boseman reported that one person signed up to provide public comments and invited the
speaker to make remarks.
Sonya Patrick, resident of Gander Drive, stated she is with the National Black Leadership Caucus as well as
Black Lives Matter and expressed appreciation for the opportunity to speak. She has traced her history in New
Hanover County back to late 1800s, and is the great granddaughter of former slave captives. As we move forward in
New Hanover County with the racial disparities in this nation, she hopes the Board makes serious attempts to make
a better tomorrow. Everyone here today can change and make historic moves for New Hanover County. Some of the
concerns are about the name of the County park, Hugh MacRae. According to the deed as long as there are
monuments saying that Hugh MacRae did donate it to New Hanover County, the name possibly can be changed. As
an African-American, a lot of the healing and the social implements of symbolism are very stressful. It's very stressful
to look at the monuments downtown and Hugh MacRae Park knowing the history of that park. She believes that
both sides can eventually agree on something. The George Floyd case brought back a lot of memories and issues
that need to be faced today. Again, she would encourage the Board moving forward, if possible in any way, to make
things better. As for the New Hanover County Sheriff’s Office, the body cams should be required to be worn and a
citizen’s review board with subpoena rights should be established. African-Americans in New Hanover County do
not trust law enforcement and they hope that things will be better. They will walk in hand with law enforcement,
when their demands are met. The organizations will be sending a full list in the near future.
In response to Board questions, County Manager Coudriet stated the newly established Office of Diversity,
Inclusion, and Equity will be tasked with the renaming of Hugh MacRae Park. The process has started to hire the
department director and that should be completed in the near future.
ADDITIONAL AGENDA ITEMS OF BUSINESS
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, JUNE 15, 2020 PAGE 584
Adoption of Live Oak Bank Authorization Resolution
Chief Financial Officer Lisa Wurtzbacher explained in working through the details for the small grant
business program, Live Oak Bank needs the County to setup an account to place the $1.3 million in there for
disbursement of funds to the grant awardees. The resolution, if adopted, will allow for this step to be done. Anytime
the County opens an account with a new institution staff has to get Board approval.
In response to Board questions, Ms. Wurtzbacher stated 792 applications were received and the 130
th
awardees have been notified. By noon on Wednesday, June 17, the awardees’ additional documentation has to be
received so the process of dispersing funds can start. If someone does not submit the necessary documentation by
noon on Wednesday, the next applicant on the list will be selected. If an applicant has not heard by now, they were
not selected. She is not aware of any plans to announce the awardees and it will be several days until everything is
finalized. County Manage Coudriet stated it is not the intention of staff to release the names of the 130 awardees
unless the Board directs otherwise. If asked, the information will be made available.
Hearing no further discussion, Chair Olson-Boseman asked for direction from the Board.
Motion: Commissioner Zapple MOVED, SECONDED by Vice-Chair Kusek, to adopt the Live Oak Bank Authorization
Resolution. Upon vote, the MOTION CARRIED UNANIMOUSLY.
A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book XLII,
Page 12.6.
Chair Olson-Boseman stated she wants to remind our community that COVID-19 is still here and it continues
to spread. Public Health and County staff, NHRMC, and other partners continue to respond to the impacts of the
virus as activity increases and we see a fairly dramatic rise in cases. As of yesterday afternoon, 44,119 cases of COVID-
19 have been reported in North Carolina and 380 of those are here in this County. Just 10 days ago, we had 262
cases in our community, so that is a significant increase of 120 cases. That’s 120 people who now have the virus and
have potentially spread it to others in just 10 days. She urged everyone to continue their personal protective
measures to slow the spread of COVID-19. Please remember: wear a face covering, maintain six feet of distance from
others when out in public, and wash your hands well and often. Each of our individual efforts protect our community
and those at risk of serious illness. And what we do today will directly impact the course of this virus in the weeks
and months to come.
ADJOURNMENT
There being no further business, Chair Olson-Boseman adjourned the meeting at 12:04 p.m.
Respectfully submitted,
Kymberleigh G. Crowell
Clerk to the Board
Please note that the above minutes are not a verbatim record of the New Hanover County Board of Commissioners
meeting. The entire proceedings are available for review and checkout at all New Hanover County Libraries and online
at www.nhcgov.com.