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2021-01-19 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REMOTE REGULAR MEETING, JANUARY 19, 2021 PAGE 736 ASSEMBLY The New Hanover County Board of Commissioners met in Regular Session on Tuesday, January 19, 2021, at 4:00 p.m. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington, North Carolina. Chair Olson-Boseman stated that the meeting is being conducted as a permissible remote meeting pursuant to North Carolina General Statute (NCGS) 166A-19.24. Members present: Chair Julia Olson-Boseman (remote); Vice-Chair Deb Hays (remote); Commissioner Jonathan Barfield, Jr. (remote); Commissioner Bill Rivenbark; and Commissioner Rob Zapple. Staff present: County Manager Chris Coudriet (remote); County Attorney Wanda M. Copley; and Clerk to the Board Kymberleigh G. Crowell. INVOCATION AND PLEDGE OF ALLEGIANCE Pastor Dan Lewis, First Presbyterian Church, provided the invocation and Commissioner Zapple 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. Motion: Commissioner Barfield MOVED, SECONDED by Vice-Chair Hays, to approve the items on the Consent Agenda as presented. Upon roll call vote, the MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA Approval of Minutes – Governing Body The Commissioners approved the minutes of the Agenda Review meeting held on December 3, 2020 and the Regular Meeting held on December 7, 2020. Approval of Appointments of Commissioners to Various Boards and Committees for 2021 – Governing Body The Commissioners approved the finalized list of New Hanover County Commissioner appointments to various Boards and Committees for 2021. A copy of the list of Commissioners appointed to County Boards and Committees for 2021 is hereby incorporated as part of the minutes and is contained in Exhibit Book XLII, Page 23.1. Approval of Boat Slip Purchase for New Hanover County Sheriff's Office Marine Unit – Sheriff’s Office The Commissioners approved the purchase of a boat slip for the New Hanover County Sheriff’s Office marine unit from Anchors Bend Marina Group for $162,645. The 2020 Port Security Grant Program approved funding to be used to purchase a minimum 30-foot boat slip for the Sheriff’s Marine Unit to enhance the unit’s maritime response to emergencies and tactical operations. Adoption of Legislative Priorities Resolution – County Manager The Commissioners adopted the legislative priorities resolution. The resolution details legislative priorities the Board has identified to advocate for in the 2021 and 2022 sessions of the N.C. General Assembly and U.S. Congress. None of the proposed priorities are in conflict with those identified by the N.C. Association of County Commissioners or the National Association of Counties. A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book XLII, Page 23.2. Adoption of Post-Issuance Compliance Policies and Procedures for Complying with Continuing Disclosure Obligations – Finance The Commissioners adopted the Post-Issuance Compliance Policies and Procedures for Complying with Continuing Disclosure Obligations. As a part of issuing public bonds, the County has an obligation to disclose certain information to bond holders through the Municipal Securities Rulemaking Board after the issuance of debt. Each financing agreement has associated continuing disclosures required. The County is in compliance with its post- issuance compliance duties. The policy includes what must be disclosed, the timeframe in which it must be disclosed, and also requires a review of the policy including exhibits at least annually or when new debt is issued. Approval of Personnel Policy Changes – Human Resources The Commissioners approved personnel policy changes effective February 1, 2021. The personnel policy has been updated to prohibit smoking/vaping and e-cigarettes on any County-owned or leased property. In addition to the smoking/vaping policy, there is one minor text modification to the sick leave bank policy, which is already in effect. Second Reading of a Solid Waste Franchise Renewal for KJD Enterprises dba Go Eco Disposal – County Attorney The Commissioners approved the second reading of a solid waste franchise renewal to be granted to KJD Enterprises dba Go Eco Disposal. Pursuant to Section 44.55, the applicant has provided information about his business organization, equipment, personnel and fiscal responsibility. The Environmental Management Director has NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REMOTE REGULAR MEETING, JANUARY 19, 2021 PAGE 737 no objections to the franchise request. The renewal franchise period would run for seven years. The first reading was unanimously approved December 7, 2020. A copy of the franchise agreement is available for review in the legal department. Second Reading of a Solid Waste Franchise for T.A.C.L., Inc., dba Trash for Troops – County Attorney The Commissioners approved the second reading of a solid waste franchise to be granted to T.A.C.L., Inc., dba Trash for Troops. Pursuant to Section 44.55, the applicant has provided information about his business organization, equipment, personnel and fiscal responsibility. The Environmental Management Director has no objections to the franchise request. The franchise period would run for seven years. The first reading was unanimously approved December 7, 2020. A copy of the franchise agreement is available for review in the legal department. Approval of a Letter of Support and Financial Pledge for Wilmington International Airport's Department of Transportation (DOT) Small Community Air Service Development Program (SCASDP) Grant Application – Strategy The Commissioners approved a letter of support and financial pledge for Wilmington International Airport's DOT SCASDP grant application. The application is for a SCASDP grant to improve air service. The grant is a competitive process requiring broad-based community support and a non-airport cash contribution. Wilmington International Airport requested support from the County in the amount of $50,000 if the grant is awarded and is also seeking support from the City of Wilmington and its private sector business partners. A financial appropriation would be included in the FY21-22 budget process. Approval of Release of the Levy for Tax Year 2010 – Tax Department The Commissioners approved the release of the levy for the tax year 2010 from the charge as the 10-year statute of limitations prohibits the tax collector from using forced collection measures to collect these taxes. The total for New Hanover County and the Fire District is $323,831.89. For all municipalities it is $139,380.90. The grand total overall is $463,212.79. A copy of the Levy for Tax Year 2010 is hereby incorporated as part of the minutes and is contained in Exhibit Book XLII, Page 23.3. Approval of November 2020 Tax Collection Reports – Tax Department The Commissioners approved the tax collection reports of New Hanover County, New Hanover County Debt Service, and New Hanover County Fire District as of November 2020. Copies of the tax collection reports are hereby incorporated as part of the minutes and are contained in Exhibit Book XLII, Page 23.4. Approval of Board of Education Budget Amendment #2 – Budget The Commissioners approved the Board of Education Budget Amendments #2 as follows: On November 24, 2020, the Board of Education approved a budget transfer as follows:  Beginning Budget correction of Instructional supply allotments coded in error to School-Based Support. No change in purpose of funds from the prior year.  Transfer from Instructional and Nutrition Services to Community Services for temporary Learning Lab services as employee benefit supporting staff in return to campus. Child Nutrition administrative positions moved to the Enterprise Fund. Adoption of Budget Amendment – Finance The Commissioners adopted the following budget amendment which amend the annual budget ordinance for the fiscal year ending June 30, 2021:  Health and Human Services Agency/Public Health 21-038 A copy of the budget amendment is hereby incorporated as part of the minutes and is contained in Exhibit Book XLII, Page 23.5. REGULAR ITEMS OF BUSINESS Chair Olson-Boseman stated that the notice of public hearings for the January 19, 2021 County Commissioners meeting provide for the possibility that the meeting may be a remote meeting pursuant to NCGS 166A-19.24. A remote meeting requires that public comments be received for 24-hours after any public hearing item. Each public hearing will be closed subject to the possibility of the hearing being re-opened if public comments are received during the 24-hour period. At the conclusion of today’s meeting, she will recess the meeting and will reconvene it on Thursday, January 21, 2021, at 11:00 a.m. in the Andre’ Mallette Training Rooms at the New Hanover County Government Center, 230 Government Center Drive. At that time, the Board will consider any public comments received during the 24-hour period. The Board will also need to vote at that time, on whether to ratify the votes taken on each public hearing held today. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REMOTE REGULAR MEETING, JANUARY 19, 2021 PAGE 738 Chair Olson-Boseman further stated that the notice of public hearings stated that if the meeting was conducted remotely, the Planning and Land Use Director would request that the quasi-judicial public hearing items be continued. She then asked for a motion to continue Agenda Item #25: Quasi-Judicial Hearing - Special Use Permit Request (S20-04) – Request by Design Solutions on Behalf of Property Owners, William S. and Tara S. Hackney, and Proclaim Holdings, LLC, for a Special Use Permit for a Live/Work Unit Within the (CZD) CB, Conditional Community Business District, Associated with Rezoning Request Z20-21, Located at 813 and 817 Piner Road and Agenda Item #26: Quasi-Judicial Hearing Special Use Permit Request (S20-05) – Request by Design Solutions, on Behalf of the Property Owner, CWEST, LLC, for a Special Use Permit to Expand and Operate a Campground and Recreational Vehicle (RV) Park within the R-15, Residential District, Located at 9515 River Road to the next regularly scheduled County Commissioners meeting on February 1, 2021. Motion: Commissioner Barfield MOVED, SECONDED by Vice-Chair Hays to approve the continuance of Agenda Item #25: Quasi-Judicial Hearing - Special Use Permit Request (S20-04) – Request by Design Solutions on Behalf of Property Owners, William S. and Tara S. Hackney, and Proclaim Holdings, LLC, for a Special Use Permit for a Live/Work Unit Within the (CZD) CB, Conditional Community Business District, Associated with Rezoning Request Z20-21, Located at 813 and 817 Piner Road and Agenda Item #26: Quasi-Judicial Hearing Special Use Permit Request (S20-05) – Request by Design Solutions, on Behalf of the Property Owner, CWEST, LLC, for a Special Use Permit to Expand and Operate a Campground and Recreational Vehicle (RV) Park within the R-15, Residential District, Located at 9515 River Road to the next regularly scheduled County Commissioners meeting on February 1, 2021. Upon roll call vote, the MOTION CARRIED UNANIMOUSLY. PRESENTATION AND APPROVAL OF THE AUDIT REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 April Adams, partner with Cherry Bekaert, LLP, presented the following information of the New Hanover County Comprehensive Annual Financial Report for the fiscal year ended June 30, 2020:  Role of the External Auditor:  Actions: plan and perform procedures; obtain reasonable assurance; free from material misstatement; compliance  Results: express opinions on financial statements; internal control over financial reporting; federal and state compliance  Required communications: policy changes; estimates; journal entries  Internal Controls:  Identify significant transaction cycles: Obtain understanding; walkthrough key controls  Journal entries: obtain “data dump”; mine for unusual transactions  Information technology controls: IT questionnaire; general computer controls  Single audit: monitoring reports; administrative controls  Significant audit areas: cash and investments; receivables and revenue; capital assets; payroll and debt  Tested substantively: confirmation; analytics; test of details  Single Audit Major Programs:  Federal major programs: CARES Act Funds; medical assistance (Medicaid); temporary assistance for needy families (TANF)  State major programs: water resources development project (Mason Inlet Dredging) program; public school building capital fund; DSS crosscutting (1,571 reporting)  Some state dollars associated with federal programs  Allowable costs; reports filed timely; procurement; local match  Audit Results:  Opinions:  Unmodified opinions for: financial statements, Internal control over financial reporting, and federal and state single audit  Internal Controls: no material weaknesses  Single audit: no findings noted; prior year findings were corrected  Required communications: no significant accounting policy changes; estimates; no journal entries  Financial Results: General Fund – Budget to Actual:  Revenue under budget by $1,223,237  Expenditures under budget by $19,185,774  In FY2020, the County appropriated the use of $9.5 million of fund balance in its final budget. However, the County added $9.2 million to total fund balance.  Financial Results: General Fund – Fund Balance:  County policy is to maintain an unassigned fund balance in the General Fund of an amount between 18% and 21% of expenditures  Unassigned Fund Balance as a percentage of General Fund Expenditures as of June 30:  2020: 18.9%  2019: 17.0%  Financial Results: Environmental Management Operating Fund – Budget to Actual:  Revenues over budget by $5,811,919  Expenditures under budget by $3,352,658  In FY2020, the County appropriated the use of $5.8 million of fund balance in its final budget. However, the County added $3.8 million of total fund balance.  Financial Results: Capital Assets before depreciation (thousands): NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REMOTE REGULAR MEETING, JANUARY 19, 2021 PAGE 739 Comparison Capital Assets 2020 2019 Land $49,163 $48,383 Buildings $205,195 $180,657 Other Improvements $66,833 $63,033 Equipment and Vehicles $90,552 $87,062 Construction in progress $22,552 $22,414 TOTAL (Actual) $434,295 $401,549  Financial Results: Long Term Obligations (thousands) Comparison Long Term Obligations 2020 2019 Installment and GO Bonds (including premiums and discounts) $444,000 $446,180 Compensated Absences $11,106 $10,382 Pensions and OPEB $459,411 $393,480 Landfill Closure Costs $24,543 $18,758 TOTAL (Actual) $939,060 $868,800 In summary, Ms. Adams stated that the County was issued clean opinions, there were no adjusted journal entries as a result of the audit, there are good internal controls, no significant deficiencies or material weaknesses were identified, and there was full cooperation with management. In response to Board questions, Ms. Adams stated the expenditures were under budget possibly due to delays of some projects, being cognizant of expenses, and indications that the sales tax would be significantly lower than it was, or a combination of things. Chief Financial Officer Lisa Wurtzbacher added that a large portion of the unspent funds are grants specifically related to resiliency and recovery that were not fully completed. As a result, revenues were also under budget which was affected due to the funds not spent and reimbursement has not been received. There were also $3 million in projects that were rolled over into fiscal year 2021, there were purchase orders that had been started that had to be filled, and then various departments were underspent. However, over $7 million of those underspent funds are related to some grants that were unable to be fully expended. Staff has been very conservative, particularly with capital expenditures and new requests submitted for fiscal year 2021. Although fiscal year 2020 did, from a sales tax perspective, come in less than budgeted, property tax was over budget and results to date are showing that property taxes are ahead of schedule. At this point she is unsure that there is a significant amount that would need to be cut or not continued, but as always, evaluation of all of new enhancement requests as well as the revenue that might be available will continue. She further explained that sales tax was short about $333,000 after accounting for the Medicaid hold harmless payment. To date, the sales tax projection is ahead of where the County was expected to be for the first four months of this fiscal year and so far it looks positive. Audits are performed by other firms for various County agencies and are provided separately from this audit. Hearing no further comments, Chair Olson-Boseman thanked Ms. Adams for the report and requested direction from the Board. Motion: Commissioner Barfield MOVED, SECONDED by Vice-Chair Hays to approve the New Hanover County Comprehensive Annual Financial Report for the fiscal year ended June 30, 2020. Upon roll call vote, the MOTION CARRIED UNANIMOUSLY. PRESENTATION OF THE TIDES PROGRAM SECOND ANNUAL REPORT 2019-2020 The Tides Founder and President William M. Johnstone, Jr. MD, JD, MBA, FACOG, FACS and Executive Director Debbie Kinsey presented the following information for the 2019-2020 report:  The Tides: Healthy Mothers Having Healthy Babies:  Who We Are:  TIDES, INC. is a comprehensive, coordinated, outpatient treatment program for women with opioid use disorder in the Cape Fear region, who are pregnant, or newly postpartum. The Tides program is a collaborative, community consortium of existing agencies and therapists.  Mission: to keep the mother-child dyad intact by engaging pregnant women with opioid use disorder in the recovery process.  What We Do: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REMOTE REGULAR MEETING, JANUARY 19, 2021 PAGE 740  How We Have Done:  Markers of Success:  In the first two years, they have served 57 women and had 36 babies in the program.  50% of the women stay in the program 12 – 18 months.  Tides residential housing opened in June 2019. In the first year, they housed 12 mothers and 11 children.  In the program, women spend an average of four months pregnant and eight months postpartum.  18 women have graduated the program.  Graduates have reported continued custody of their child, no CPS involvement or new criminal charges. Many have their driver’s license back and are employed. Ms. Kinsey concluded the update with a brief testimonial from graduate Ashley Brownson, who was unable to attend the meeting. Chair Olson-Boseman thanked Dr. Johnstone and Ms. Kinsey for their work to help women in this community who have an opioid use disorder who are pregnant or new mothers. This is a very needed program in this community. In response to Board questions, Ms. Kinsey stated an outpatient woman is a woman that is in the program, but not in the residential facility, and is receiving services. The action plans for the women who come in from criminal and family courts are driven by the case plans. The women served from the criminal courts have an ankle bracelet, which helps with the monitoring and there is a probation officer involved. A lot of the women they serve from the family courts cannot have unsupervised time with their babies and have to be able to show that they can handle it in order to have the unsupervised time. The County has contributed $315,360 per year for the last three years to the program. Commissioner Barfield stated he would recommend that at the appropriate time during the budget process that the County continue contributing to the program for another three years as it truly has had a positive impact in this community. County Manager Coudriet stated in response to Board questions, that based on the Board’s conversation today, this was enough directive to include it in the recommended budget. CONSIDERATION AND APPROVAL OF HOME DELIVERED MEALS EXPANSION AND ADOPTION OF BUDGET AMENDMENT 21-040 Senior Resource Center Director Amber Smith presented the following information on the home delivered meals (HDM) enhancement request:  Budget amendment request includes:  $43,693 General Fund Budget Amendment:  Adds an additional 75 clients to the HDM program. The 75 are from the current waiting list.  Adds two full-time employee (FTE) positions to meet the growing demands of the senior nutrition programs.  Purchase of one van for meal deliveries.  Accepting two grant revenue sources:  $10,000 from Meals on Wheels NC/State Employee Credit Union  $5,963 from increased USDA revenues  More than a meal:  HDM Program:  Serves eligible New Hanover County homebound seniors 60+ with a nutritious meal Monday through Friday  Decreases social isolation  Improves food insecurities and access to healthy food  Social work and resource services  Helps seniors maintain independence and supports aging in place  Quicker intervention to change of conditions  Caregiver and family support  Senior nutrition programs five-year growth: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REMOTE REGULAR MEETING, JANUARY 19, 2021 PAGE 741  Looking ahead:  Challenges:  Growing older adult population; ongoing volunteer need; ongoing funding to support older adult services; and the requested budget amendment would cap the HDM daily meal count to 540  Opportunities: Master aging plan for a healthier future  Volunteer for HDM program: 910-798-6423; src.nhcgov.com  Information about the County’s senior nutrition programs: 910-798-6400; src.nhcgov.com The Board expressed appreciation to Ms. Smith for the work she and her team are doing for the seniors in this community. Hearing no further discussion, Chair Olson-Boseman asked for the Board’s direction on the request. Motion: Vice-Chair Hays MOVED, SECONDED by Chair Olson-Boseman, to approve the home delivered meals expansion and adopt budget amendment 21-040. In response to Board questions, Ms. Smith explained that if the demand grows beyond the 540 meals a day, there would be a waiting list. Staff always works to determine/assess eligibility and look at potentially other resources that someone may be eligible for to make sure their nutrition needs are being met. She will ensure that County Manager Coudriet is aware of any waiting list of people above the 540. Hearing no further discussion, Chair Olson-Boseman called for a roll call vote on the motion on the floor. Upon roll call vote, the MOTION CARRIED UNANIMOUSLY. A copy of the budget amendment is hereby incorporated as part of the minutes and is contained in Exhibit Book XLII, Page 23.6. CONSIDERATION AND APPROVAL OF THE BOARD OF COMMISSIONERS PROVIDING FOR THE ISSUANCE OF NOT TO EXCEED $31,000,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 2021A, AND $33,000,000 TAXABLE GENERAL OBLIGATION REFUNDING BONDS, SERIES 2021B Chief Financial Officer Lisa Wurtzbacher presented the following information on the general obligation debt refunding:  General Obligation Debt Refunding:  Current debt to be refunded:  2010B Taxable General Obligation Public Improvement Bonds:  $30,000,000 outstanding and refunding all maturities  2013 General Obligation Community College Bonds:  $37,500,000 outstanding and refunding certain maturities  2021 Refunded Debt:  Estimated par amount of $58.94 million; estimated interest cost of 1.48%; and no extension of debt maturity  Refunding Bonds – Estimated Savings: Estimated Current Debt Refunding Debt Estimated Service Service Savings 2010B Taxable General Obligation Bonds* $35,288,787 $31,276,522 $4,012,265 2013A General Obligation Bonds $38,855,000 $36,887,087 $1,997,913 Total $74,173,787 $68,163,609 $6,010,178  Note: Estimated net present value savings is $5.6 million or 9.4% *Current debt service amount is net of subsidies expected  Requested actions and next steps:  January 19, 2021:  Adopt Resolution of Finding of Facts  Introduce Bond Order  Adopt Bond Order  Adopt Bond Resolution  January 20, 2021 - Rating Agency Presentations (S&P and Moody’s)  February 2, 2021 – LGC Approval  February 11, 2021 – Bond Sale  February 25, 2021 - Closing In response to Board questions, Ms. Wurtzbacher stated that staff is always looking for ways to save the County money. With the County’s current credit rating being the highest possible rating of triple A, in addition to the interest rate environment currently dropping lower than what the bonds were originally issued for, the County can take advantage of these savings. Hearing no further discussion, Chair Olson-Boseman stated that a resolution entitled “Resolution of the Board of Commissioners of the County of New Hanover, North Carolina Making Certain Statement of Facts NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REMOTE REGULAR MEETING, JANUARY 19, 2021 PAGE 742 Concerning Proposed Bond Issue” is before the Board of Commissioners for consideration which makes certain findings related to the County’s financial information and planned borrowing, as required by the North Carolina Local Government Commission in order to consider the County’s application for approval by the Commission to issue general obligation bonds that will refund two of the County’s outstanding general obligation bonds. She then asked for a motion to adopt the resolution. Motion: Commissioner Barfield MOVED, SECONDED by Vice-Chair Hays, to adopt the “Resolution of the Board of Commissioners of the County of New Hanover, North Carolina Making Certain Statement of Facts Concerning Proposed Bond Issue”. Upon roll call vote, the MOTION CARRIED UNANIMOUSLY. Chair Olson-Boseman stated that she would introduce the bond order entitled, “Bond Order Authorizing the Issuance of Not to Exceed $64,000,000 General Obligation Refunding Bonds of the County of New Hanover, North Carolina”. The copies of the bond order are available in the Board’s agenda packet. As the bond order has now been introduced, she stated she would make a motion that the Board adopt without change or amendment the general obligation refunding bond order entitled, “Bond Order Authorizing the Issuance of Not to Exceed $64,000,000 General Obligation Refunding Bonds of the County of New Hanover, North Carolina” and direct the Clerk to publish a notice of adoption regarding the bond order, as prescribed by The Local Government Bond Act. Motion: Chair Olson-Boseman MOVED, SECONDED by Vice-Chair Hays to adopt without change or amendment the general obligation refunding bond order entitled, "Bond Order Authorizing the Issuance of Not to Exceed $64,000,000 General Obligation Refunding Bonds of the County of New Hanover, North Carolina” and direct the Clerk to publish a notice of adoption regarding the bond order, as prescribed by The Local Government Bond Act. Upon roll call vote, the MOTION CARRIED UNANIMOUSLY. Chair Olson-Boseman stated that finally, a resolution entitled, “A Resolution of the Board of Commissioners of the County of New Hanover, North Carolina Providing for the Issuance of Not to Exceed $31,000,000 General Obligation Refunding Bonds, Series 2021A and $33,000,000 Taxable General Obligation Refunding Bonds, Series 2021B of the County of New Hanover, North Carolina” is before the Board of Commissioners for consideration which approves the issuance of two series of general obligation refunding bonds. She asked if there was a motion to adopt the resolution as presented. Motion: Commissioner Zapple MOVED, SECONDED by Commissioner Barfield to adopt as presented a resolution entitled, “A Resolution of the Board of Commissioners of the County of New Hanover, North Carolina Providing for the Issuance of Not to Exceed $31,000,000 General Obligation Refunding Bonds, Series 2021A and $33,000,000 Taxable General Obligation Refunding Bonds, Series 2021B of the County of New Hanover, North Carolina”. Upon roll call vote, the MOTION CARRIED UNANIMOUSLY. A copy of the resolutions and bond order are hereby incorporated as part of the minutes and is contained in Exhibit Book XLII, Page 23.7. PUBLIC HEARING AND APPROVAL FOR ECONOMIC DEVELOPMENT APPROPRIATION AND ADOPTION OF BUDGET AMENDMENT 21-037 Chair Olson-Boseman stated the request is for the appropriation of $25,000 to Genesis Block Labs to help with their accelerator program to help increase the minority business presence and increase jobs in the community. This is a mid-year request and public hearings are required for economic development appropriations. The Board is being asked to hold the public hearing and adopt the associated budget amendment. Chair Olson-Boseman opened the public hearing stating that it is to receive comments on appropriations and expenditures for economic development and economic incentive agreements. The source of funding for this appropriation and expenditure will be from the General Fund. The purposes of economic development and economic incentive agreements are to increase the population, taxable property, agricultural industries, employment, industrial output, or business prospects for New Hanover County. The economic development expenditure has been recommended for appropriation in the FY20-21 budget and is under consideration for adoption by the Board. Chair Olson-Boseman invited Girard and Tracey Newkirk, co-founders of Genesis Block Labs, LLC, to make remarks on the request. Mr. Newkirk stated that the company is a business development services company. There are three components to the business: 1) it offers co-working spaces, meeting rooms, and event spaces for early stage entrepreneurs and startups, 2) it provides essential skills training through the Genesis Block Entrepreneur Academy, and 3) is the accelerator program. The third component is the purpose for this request. The accelerator program provides a 16-week intensive entrepreneur skills program, mentorship, shared workspace, professional networking, and access to capital upon completion. The goals are to produce 40 companies each year over the next three years to turn out 120 minority and women owned businesses, to have job creation by creating 400 jobs for the region by having one of the selection conditions be that companies develop a capacity to hire one to three employees within the region, and also to have community prosperity with the expectation that revenue will increase significantly from these businesses by generating about $13 to $15 million in revenue. The first accelerator will th launch on January 28 beginning at 6:30 p.m. There were over 67 applicants that registered for consideration for the first accelerator. There will be 10 companies selected from the registrations. The request for funding is to support the program. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REMOTE REGULAR MEETING, JANUARY 19, 2021 PAGE 743 Chair Olson-Boseman stated that one person signed up to speak and invited the person to step forward to provide comments. Natalie English, Wilmington Chamber of Commerce President and CEO, stated the Wilmington Chamber of Commerce’s (Chamber) vision is to promote prosperity for our community by encouraging business growth. It is exciting to see the creation of the programs that Genesis Block has in place and the ability to not just lend a hand, but truly invest in minority and women-owned businesses in a way that will grow our economy. The Chamber fully supports this opportunity to invest in that work. Vice-Chair Hays stated she is fully supportive of the request and at the appropriate time will make a motion to approve the request and adopt the associated budget amendment. Commissioner Barfield stated he is generally supportive of the request. Anything that can be done to enhance minority and women owned businesses and create jobs in this community is a definite plus. He would like for Mr. and Mrs. Newkirk to provide an update next year on the program. Hearing no further comments, Chair Olson-Boseman closed the public hearing and asked if there was a motion to approve the economic development appropriation and expenditure to Genesis Block Labs, LLC, in the amount of $25,000, based on the finding that the appropriations and expenditures will increase the population, taxable property, agricultural industries, employment, industrial output, or business prospects of the County and adopt budget amendment 21-037. Motion: Vice-Chair Hays MOVED, SECONDED by Commissioner Barfield, to approve the economic development appropriation and expenditure to Genesis Block Labs, LLC, in the amount of $25,000, based on the finding that the appropriations and expenditures will increase the population, taxable property, agricultural industries, employment, industrial output, or business prospects of the County and adopt budget amendment 21-037. Upon roll call vote, the MOTION PASSED UNANIMOUSLY. A copy of budget amendment 21-037 is hereby incorporated as part of the minutes and is contained in Exhibit Book XLII, Page 23.8. PUBLIC HEARING AND APPROVAL OF DEVELOPMENT AGREEMENT FOR THE REDEVELOPMENT OF THE GOVERNMENT CENTER Chair Olson-Boseman stated pursuant to NCGS 143-128.1C, before considering a development agreement, the Board shall hold a public hearing at which time any persons who wish to be heard may appear. She then asked Chief Financial Officer Lisa Wurtzbacher to provide information on the request. Ms. Wurtzbacher presented the following information on the request:  The Government Center Redevelopment Project:  Amended 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:  Developer manages project  County funds project costs through debt  Private development:  Phase 1 – Mixed-use development with workforce housing  Phase 2 – Commercial/office use  Estimated project costs: Estimates (in millions) Design 3.6 Construction 39.5 Furniture, Fixtures and Equipment 5.3 Other 5.2 Total Estimated Project Cost $53.6  Note: Costs directly related to the development agreement are estimated at $45.9 million. Additional costs added to the project are costs related to furniture, fixtures and equipment (FF&E) and contingency.  20 Year Financial Projections: Estimates (in millions) Estimated Debt Service $60.7 Estimated Tax Revenues from Private (8.1) Development Purchase Price of Parcel 2 (2.8) Net Cost $49.8 NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REMOTE REGULAR MEETING, JANUARY 19, 2021 PAGE 744  Note: Chart above illustrates the estimated net cost of the project. Debt is estimated at an interest cost of 1.52% and tax revenues are estimated at the current tax rate and uses a property value growth rate each year.  Requested actions:  Hold public hearing  Approve Development Agreement  Adopt capital project ordinance  Approve debt issuance to fund project Chair Olson-Boseman thanked Ms. Wurtzbacher for the presentation, stated that no one signed up to speak in-person and invited Deputy Clerk to the Board Dahria Kianpour to read into the record the two written comments that were received: Ms. Kianpour reported that the following written comments were received in regard to this public hearing:  New Hanover Soil & Water Conservation District (NHSWCD) Chair Bill Hart submitted the following statement: “Madam Chairwoman, members of the Board of New Hanover County Commissioners. The Board of Supervisors of the Soil and Water Conservation District appreciates the opportunity to offer comments on the proposed change in financing and ownership of a new County Government Center. In a formal action, the Board of Supervisors supports your action to take on the financing and ownership of the proposed construction of the new Government Center instead of leasing the property for 20 years. The District believes this is a vital investment into our community that shows long-term commitment for civic infrastructure that better serves its residents, and we applaud that effort. As the Soil and Water Conservation District we offer our technical expertise and resources to help the County continue demonstrating to the public its commitment to good governance through the implementation of stormwater best management practices and Low Impact Development systems. By designing and constructing the exterior of the new County Government Center and attendant parking facility in a way that teaches and mimics natural processes in order to capture and treat on-site stormwater runoff, the government complex protects water quality, provides wildlife habitat, and creates a development that serves as a model for future public and private developments to emulate. At District urging, the New Hanover County School Board adopted a Low Impact Development policy to compliment the LEED policy for new construction. The District Board is impressed by the favorable response of the Chief of Facilities Management to our offer to mobilize expert support. A meeting with the Design Team to begin the conversation has been scheduled. Thank you for this opportunity.”  Jayne B., resident of Wilmington, NC submitted the following statement: “We do not need a new government center right now. Delay this for several years. Too many people are out of work and without money. You are talking about a luxury we simply cannot afford plus we may very well go into a recession. Please delay this.” Chair Olson-Boseman thanked Ms. Kianpour for reading the comments aloud and opened the floor for Board discussion. Commissioner Barfield stated he hopes the 25,000-gallon cistern installed by NHSWCD at the rear of the property will be utilized to help clean, water plants, etc. and also teach the community and young children about the importance of water conservation and how to adapt and reuse water. He also hopes the name of the current building, The Bruce Shell Government Center, will be attached to the new building as the previous Board acknowledged former County Manager Bruce Shell’s endeavor to have the government center where it is today. Commissioner Zapple stated that he fully supports this request. What is being lost in the discussion is the amount of money the County currently pays to maintain the current government center facility. It is beyond its practical lifetime in the cost of maintaining things such as the HVAC, the lack of insulation, and the inability to have natural light for employees other than those on the west side of the building. The new building will be a tremendous asset to the County and will allow the public access to services in a much better and more comfortable manner. Overall, it will be a savings over 10 to 20 years as compared to what the costs are now for the current building. Hearing no further discussion, Chair Olson-Boseman closed the public hearing and 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: Chair Olson-Boseman MOVED, SECONDED by Commissioner Barfield, to approve the development agreement with Cape Fear FD Stonewater LLC and authorize staff to execute said agreement and associated closing documents. Upon roll call vote, the MOTION PASSED UNANIMOUSLY. A copy of the capital project ordinance is hereby incorporated as part of the minutes and is contained in Exhibit Book XLII, Page 23.9. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REMOTE REGULAR MEETING, JANUARY 19, 2021 PAGE 745 PUBLIC HEARING ON PROPOSED $91,000,000 FINANCING OF IMPROVEMENT PROJECTS AND ADOPTION OF APPROVING RESOLUTION Chair Olson-Boseman stated that the Board of County Commissioners adopted on December 7, 2020 a “Resolution of the Board of Commissioners of the County of New Hanover, North Carolina, Authorizing the Negotiation of an Amendment to an Installment Financing Contract, Directing the Publication of Notice with Respect Thereto and Providing for Certain Other Related Matters Thereto”. The Board determined it is in the best interest of the County to enter into an installment financing contract to pay the capital costs of constructing a long-term peer-led recovery facility, constructing the new government center facility, constructing stormwater infrastructure, and paying capital costs for equipment for both the County and the school system. The Board must now conduct a public hearing concerning the third contract amendment, the second notice of extension, and the proposed 2021 projects and any other transactions contemplated therein and associated therewith. Chair Olson-Boseman opened the public hearing and asked Chief Financial Officer Lisa Wurtzbacher to proceed with the presentation. Ms. Wurtzbacher presented the following information on the matter:  Limited Obligation Bonds: Not to exceed $91 million:  Projects to be funded:  County projects include:  The Healing Place facility  New government center  Stormwater culvert  Fire engine replacement  Various equipment  School capital  Refunding of 2018 debt  Requested actions:  Conduct public hearing  Approve resolution Chair Olson-Boseman stated that no one had signed up to speak in-person on the matter, no written comments had been received, and closed the public hearing. Hearing no further discussion, Chair Olson-Boseman asked if there was a motion to adopt the “Resolution of the Board of Commissioners of the County of New Hanover, North Carolina, approving an Amendment to an Installment Financing Contract and a Notice of Extension to a Deed of Trust and Delivery Thereof and Providing for Certain Other Related Matters Thereto”. Motion: Vice-Chair Hays MOVED, SECONDED by Chair Olson-Boseman, to adopt the “Resolution of the Board of Commissioners of the County of New Hanover, North Carolina, approving an Amendment to an Installment Financing Contract and a Notice of Extension to a Deed of Trust and Delivery Thereof and Providing for Certain Other Related Matters Thereto”. Upon roll call vote, the MOTION PASSED UNANIMOUSLY. A copy the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book XLII, Page 23.10. PUBLIC HEARING AND APPROVAL OF A REQUEST BY HODGES, COXE, & POTTER, LLP ON BEHALF OF PROPERTY OWNERS, STEPHEN CLOSSICK AND WBP, LLC, TO REZONE APPROXIMATELY 2.3 ACRES OF LAND LOCATED AT 7775 MARKET STREET FROM (CUD) O&I, CONDITIONAL USE OFFICE AND INSTITUTIONAL DISTRICT, TO (CZD) B-2, CONDITIONAL REGIONAL BUSINESS DISTRICT, IN ORDER TO DEVELOP A BOAT DEALER AND VEHICLE SALES BUSINESS (Z20-16) Chair Olson-Boseman opened the public hearing and requested staff to make the presentation. Senior Planner Brad Schuler presented the request by Hodges, Coxe, & Potter, LLP on behalf of property owners, Stephen Clossick and WBP, LLC, to rezone approximately 2.3 acres of land located at 7775 Market Street from (CUD) O&I, Conditional Use Office and Institutional District, to (CZD) B-2, Conditional Regional Business District, in order to develop a boat dealer and vehicle sales business. The subject site is located at 7775 Market Street between CubeSmart Storage and the Sound Cat Veterinary Hospital. The subject site is currently undeveloped and contains one specimen tree, which will be retained as reflected on the proposed site plan. The northern parcel within the existing (CUD) O&I zoning district has been developed (The Sound Cat Veterinary Hospital). The applicant is proposing to construct a one-story, 10,500 square foot office building with associated parking and landscaping on the subject site. The building is proposed to serve primarily as an office building, showroom, and service area for the applicant’s vehicle and boat sales business (Battleship Marine). However, over the course of the staff review of this request, the applicant revised the plan to increase the building to 12,000 square feet. The additional 1,500 square feet will have minimal impact on the traffic generation or any other applicable development regulations for the project. The project will be designed with interconnectivity to the adjacent veterinary hospital. Vehicles will enter and exit on the northern side of the property through a driveway shared with the veterinary hospital that connects to Alexander Road (SR 1345). There will be no direct access to Market Street. Once the Market Street median project is completed in 2023, motorists will still have the option to utilize Alexander Road when entering the site from northbound Market Street with a traffic signal for the left movement only. When exiting the site using Alexander Road, motorists will be limited to a right hand turning movement. Any modification to the existing driveway will be NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REMOTE REGULAR MEETING, JANUARY 19, 2021 PAGE 746 considered at the time of review by the North Carolina Department of Transportation (NCDOT) during the driveway permitting process. In regard to transportation, as currently zoned it is estimated the site would generate about 30 trips in the peak hours. The proposed development is estimated to increase the peak hour trips generated from the site by about five to 10 trips. Also, including the animal hospital, it is estimated the entire site would generate approximately 50 to 60 trips, which is below the 100 peak hour trip threshold that triggers the ordinance requirement for a Traffic Impact Analysis (TIA). There have been three other TIAs completed in the area, the details of which are included in the staff report. There are two major NCDOT projects currently under construction in the area. Both the Market Street median project and the Military Cutoff extension project are expected to be completed by 2023. There are two active subdivisions under development in the area with about 50 homes left to be constructed. In regard to compatibility, the site is located along a major corridor and in-between two commercial businesses. The site is designed to share an access to Alexander Road and again, will retain a large oak tree. It also will have no impact on the school system. The 2016 Comprehensive Land Use Plan (Comprehensive Plan) classifies the site as Community Mixed Use. The proposed conditional zoning district is generally consistent with the Comprehensive Plan because it would provide for a lower intensity commercial use in a transitional area between higher intensity nodes (Ogden and Porters Neck). In addition, this type of commercial use is compatible with adjacent office and commercial service uses. The Planning Board considered this application at their November 5, 2020 meeting and recommended approval of the application (4-0), finding the application to be consistent with the purposes and intent of the Comprehensive Plan and that approval of the rezoning is reasonable and in the public interest. If approved, the project would be subject to Technical Review Committee (TRC) and zoning compliance review in order to ensure full compliance of all applicable development regulations. Chair Olson-Boseman thanked Mr. Schuler for the presentation and invited the applicant to make remarks. Sam Potter, attorney with Hodges, Coxe and Potter, LLP, representing the applicant and property owners, Stephen Clossick and WBP, LLC, stated this property is located at 775 Market Street and has been on the market and undeveloped for well over a decade, almost two decades after the animal hospital on the corner was developed. This is largely due to the site challenges that are in place: 1) the property does not have direct access to Market Street, which for most commercial uses is a nonstarter, and cannot have direct access to Market Street; 2) there is no sewer access to the property currently and has always been analyzed for being appropriate for a septic development, 3) the veterinary practice on the corner actually has a septic field that is right in the middle of the wooded area, essentially making the property undevelopable, 4) if one could get around the septic system, there is 40 to 41-inch heritage oak roughly in the middle of the property, but a little more west than the septic system, and 5) it is an L-shaped lot. For these reasons, it has been difficult for the property to be developed. Over the last eight months, work has been done with County Planning staff and Cape Fear Public Utility Authority (CFPUA) on solutions for these issues. In being able to work with CFPUA to bring sewer to the site, it will allow his clients’ property to be served by sewer. Also because of the restrictive covenants on the veterinary practice on the corner, it requires the practice to also hook into the sewer system which obviates the need for the existing septic system. Once sewer is provided to the veterinary clinic, the septic system will be removed. In working with County Planning staff to save the heritage oak, the planned building was able to be moved both towards Market Street to the east and south towards the CubeSmart Storage. The unintended, but positive, consequence of this was also moving the building away from the residential properties in the back. Mr. Potter further stated that work was done with the residential neighbors in the back, none of them are present in objection to the request, and are supportive of the proposal. A community meeting was held in July at the existing location at 8006 Market Street. The residents who attended the meeting were clear with his clients about the type of buffering, landscaping, and fencing they wanted to see along the property line, which his clients agreed to and will be providing. During the Planning Board meeting, the members stated they would like to see an idea of what the project would look like from the street. Mr. Potter then provided an overview of the structure appearance explaining it will be hardie board and batten siding, as well as having vertical and horizontal metal accents and a standing seam metal roof. The site design was done by Charlie Cazier with Intracoastal Engineering, who was present to answer any technical aspects of the site. Mr. Potter concluded his presentation stating that while being a difficult site, creative solutions have been drawn up with support from the County Planning staff, a heritage oak will be saved, and the neighbors have been satisfied. The building is well designed by local professionals, and in accordance with Mr. Schuler’s presentation, it is consistent with the Comprehensive Plan. He asked that the Board approve the rezoning request. Chair Olson-Boseman thanked Mr. Potter for the presentation, announced that no one signed up to speak in favor, and asked that Mr. Schuler read into the record the one written comment submitted in opposition. Mr. Schuler reported that the following written opposition comment from Tom Riggins, resident of Bayshore Drive, was received: “I live on Pages Creek and the runoff from this project would add more pollution to an already impaired estuary. Not sure if a retention pond is in the works, but even if it is, it doesn't stop the runoff in heavy rain events, which we seem to be having more and more of.” NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REMOTE REGULAR MEETING, JANUARY 19, 2021 PAGE 747 Chair Olson-Boseman stated that the applicant had five minutes for rebuttal comments. In rebuttal, Mr. Potter stated that there is a stormwater process that his clients will have to go through to obtain a stormwater permit. It will require that it be shown that there is no change in the water flowing off the site property and Mr. Cazier is available to answer any technical questions. Hearing no further discussion, Chair Olson-Boseman closed the public hearing and opened the floor for Board discussion. In response to Board questions, Mr. Cazier stated in regard to the underground infiltration system the site was permitted before with the previous plan approval for the system. The permit will need to be modified slightly through both the state and the county, but will stay as an underground infiltration system. The goal is to encourage infiltration in the area. It will be designed for a 25-year pre-post design and will also be checked for a 50-year design. In response to additional Board questions, Mr. Schuler explained the intention of the fenced service/parking area is that it is temporary storage when the boats are being serviced. It is where the vehicles will be parked while the owner comes to pick them up. It is not permitted for permanent boat storage. As to the fence opacity, the western portion that abuts the existing single family residences will have a 20-foot buffer. There are a few different options in the ordinance of how to achieve that. His understanding is the applicant is going to be doing an opaque fence with some vegetation in that area. Mr. Potter stated that the plan has been revised accordingly to provide for the fencing/vegetative buffer. It is exactly what the neighbors asked for, a six-foot privacy fence. Hearing no further discussion, Chairman Olson-Boseman asked for the Board’s direction on the request. Motion: Commissioner Zapple MOVED, SECONDED by Commissioner Rivenbark to approve the proposed rezoning to a (CZD) B-2 district as the Board finds it to be consistent with the purposes and intent of the Comprehensive Plan because the proposed uses are consistent with the types of commercial uses that would be encouraged in the Community Mixed Use place type. In addition, these uses would serve as an appropriate transition between existing commercial development and adjacent residential neighborhoods. The Board also finds approval of the rezoning request is reasonable and in the public interest because the site is adjacent to existing commercial uses, the use would have limited traffic impacts, and approval supports the success of an existing small business. Upon roll call vote, the MOTION CARRIED UNANIMOUSLY. 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 86. PUBLIC HEARING AND APPROVAL OF A REQUEST BY DESIGN SOLUTIONS ON BEHALF OF THE PROPERTY OWNERS, EDNA F. DUPREE HEIRS (KAREN COLEY) AND EDWARD FOYLES HEIRS (LEWIS HINES), TO REZONE APPROXIMATELY 2.22 ACRES OF LAND LOCATED AT 7036 AND 7038 MARKET STREET, FROM R-15, RESIDENTIAL DISTRICT, TO (CZD) CB, CONDITIONAL COMMUNITY BUSINESS DISTRICT, IN ORDER TO DEVELOP A GENERAL RETAIL SALES AND PERSONAL SERVICE ESTABLISHMENT (Z20-20) Chair Olson-Boseman opened the public hearing and requested staff to make the presentation. Long Range Planner Marty Little presented the request by Design Solutions on behalf of the property owners, Edna F. Dupree Heirs (Karen Coley) and Edward Foyles Heirs (Lewis Hines), to rezone approximately 2.22 acres of land located at 7036 and 7038 Market Street, from R-15, Residential District, to (CZD) CB, Conditional Community Business District, in order to develop a general retail sales and personal service establishment. The site is located along the Market Street corridor, north of the Military Cutoff intersection. It is adjacent to B-2 zoning with retail, personal service, and other commercial uses, as well as R-15 with single family homes. Mr. Little reviewed an aerial photo of the site in its existing, undeveloped conditions. The applicant’s conceptual plan proposes a 16,000 square foot building, which will be occupied by 10,000 square feet of furniture retail and showroom, and 6,000 square feet of miscellaneous general retail or personal service. The plan also includes a 5,000 square foot warehouse to the rear of the principal structure, which is intended to serve as storage for the furniture business. Primary access to the site is provided by Market Street. As the property is located within the project area for NCDOT’s Military Cutoff extension project, the driveway will later be converted to a right-in, right-out controlled access driveway. No other access is proposed. The rezoning request is estimated to generate about 16 trips in the AM peak hour and 39 trips in the PM peak hour. This is around 10-30 peak hour trips greater than what would be estimated for a typical R-15 development (no more than five homes). The anticipated number of peak hour trips is below the 100 trip threshold that triggers the Unified Development Ordinance (UDO) requirement for a TIA. There are two approved TIAs in the surrounding area, one for the Bayshore Commercial development and the other for the Ogden Starbucks. Details for those projects may be found in the staff report. NCDOT projects in the area include the Military Cutoff extension project, the Market Street median project, and the Gordon Road widening project. Again, the project is located within the Market Street portion of the Military Cutoff extension improvements, which are expected to be completed by early 2023. The applicant is aware of this and has designed the site to reflect the improvements. Further coordination between the applicant and NCDOT would be needed as part of the driveway permitting process. There are three active subdivisions in the area, with approximately 40 units remaining until being fully built out. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REMOTE REGULAR MEETING, JANUARY 19, 2021 PAGE 748 As far as compatibility, the site is located on a predominantly commercial corridor. It is adjacent to existing retail, personal service, and other commercial uses. The site also abuts single-family homes to its sides and rear, where it would be required by the UDO to install landscaped bufferyards. Now that the measures for the County’s strategic plan are being reported out, staff is including a consideration of whether or not projects align with the goals of the strategic plan, if they are relevant. One of the goals of the plan is to encourage the development of complete communities by increasing access to basic goods and services and diversity of housing. This proposal should have a neutral impact on the development of this goal. The Ogden community area is generally one of the more complete communities. Most residents live within close proximity (one to two miles) of a provider of convenience needs (grocery stores, pharmacies, etc.). The conversion of these properties along Market Street to commercial zoning will not decrease housing diversity, as about 90% of residential units in the Ogden area are detached single family homes. The 2016 Comprehensive Plan classifies the site as Urban Mixed Use. The proposed rezoning for the retail sales and personal services use with accessory warehouse is generally consistent with the types of commercial uses encouraged in the Urban Mixed Use place type. The Planning Board considered this application at its November 5, 2020 meeting and recommended approval of the application (4-0), finding the application to be consistent with the purposes and intent of the Comprehensive Plan because the proposed uses are consistent with the types of commercial uses that would be encouraged in the Urban Mixed Use place type and would serve as an appropriate transition between existing commercial development and adjacent residential neighborhoods. It also found approval of the rezoning request to be reasonable and in the public interest because the site is in close proximity to the Military Cutoff extension and existing commercial services; therefore, it is unlikely that a new single family residence will be constructed on the site. If approved, the project would be subject to TRC and zoning compliance review processes in order to ensure full compliance with all ordinance requirements. Chair Olson-Boseman thanked Mr. Little for the presentation and invited the applicant to make remarks. Cindee Wolf with Design Solutions, on behalf of the property owners, Edna F. Dupree Heirs (Karen Coley) and Edward Foyles Heirs (Lewis Hines) and her clients who own Porch Concepts, stated that policies for growth and development encourage continued efforts to attract and maintain businesses. Paul and Mary Mackey have been in the furniture business for over 20 years and have built a successful business just down the road, but currently operate out of a leased facility. They now have the confidence and desire to own their own real estate. Again, the business is presently just down the road from the subject site. As far as differences in traffic, there really will be no type of an impact. The purpose of the community business district is to accommodate businesses that serve surrounding neighborhoods with goods and services. Outdoor furniture is one of those types of businesses that has thrived. The hours of operation are 10AM to 5PM Monday through Friday, 10AM to 3PM on Saturdays, and closed on Sundays. There is a location on the site plan for a billboard that was actually there prior to the beginning of the improvements that are being made on Market Street. It is a lease that is in place until the mid-20s, so there is no way around that. The new owner will have to carry on the current lease and the new billboard was arranged through NCDOT, and it has been worked into the site. The stormwater management on this particular site will be towards the back, the plans are for an infiltration system, which is being based on some excellent soil testing that was done as far as the seasonal groundwater depth, and the infiltration rates in the places where it is expected to have the infiltration areas. It is felt the showroom warehouse and the extra retail will make the project more feasible to her clients and is a good opportunity for the street frontage along Market Street. In response to Board questions, Ms. Wolf confirmed that her clients understood the site’s proximity to the Military Cutoff extension project. If this project is approved, it will take four to six months to get the permitting done and then there will be a period of time for construction. Her clients are prepared to move forward with it and fully understand what is being done with the NCDOT project. Also, they do not make their own furniture. The warehouse portion of the building will be for furniture that people have ordered and where it will be picked up. The furniture store portion is a showroom where customers make the purchases that are then shipped in, placed in the warehouse, and picked up from that area. 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) CB district as the Board finds it to be consistent with the purposes and intent of the Comprehensive Plan because the proposed uses are consistent with the types of commercial uses that would be encouraged in the Urban Mixed Use place type and would serve as an appropriate transition between existing commercial development and adjacent residential neighborhoods. The Board also finds approval of the rezoning request is reasonable and in the public interest because the site is in close proximity to the Military Cutoff extension and existing commercial services; therefore, it is unlikely that a new single family residence will be constructed on the site. Upon roll call vote, the MOTION CARRIED UNANIMOUSLY. 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 7, 1972 is hereby incorporated as part of the minutes and is contained in Zoning Book II, Section 8B, Page 83. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REMOTE REGULAR MEETING, JANUARY 19, 2021 PAGE 749 PUBLIC HEARING AND APPROVAL OF A REQUEST BY COASTAL LAND DESIGN, PLLC ON BEHALF OF PROPERTY OWNER, PRESERVATION POINT PARTNERS, LLC TO REZONE APPROXIMATELY 71.36 ACRES OF LAND LOCATED IN THE 1500 BLOCK OF CASTLE HAYNE ROAD FROM I-2, HEAVY INDUSTRIAL DISTRICT, TO R-15, RESIDENTIAL DISTRICT (Z20-22) Chair Olson-Boseman opened the public hearing and requested staff to make the presentation. Current Planner Gideon Smith presented the request by Coastal Land Design, PLLC on behalf of property owner, Preservation Point Partners, LLC to rezone approximately 71.36 acres of land located in the 1500 block of Castle Hayne Road from I-2, Heavy Industrial District, to R-15, Residential District. The subject property is located on the eastern side of the Northeast Cape Fear River, just north of the interchange at Martin Luther King, Jr. (MLK) Parkway and Castle Hayne Road. The surrounding area along MLK Parkway is mainly made up of industrial zoned land. In traveling along Castle Hayne Road, one generally finds commercial uses and residential subdivisions, including Preservation Point. Preservation Point began as a 98 lot subdivision and has received several Board approvals over the past couple of years, including a conditional use rezoning in 2017 to allow for a community boating facility in the Cape Fear River. In 2019, other portions were rezoned from heavy industrial to R-15 and regional business to expand the subdivision to 150 lots and allow commercial development along Castle Hayne Road. The developer recently received final plat approval associated with these zoning changes and Preservation Point is now under construction with roads installed throughout the development. The applicant is now seeking a general use or straight rezoning for the subject site to incorporate the residual land into the subdivision as the current heavy industrial district does not allow residential uses. According to the applicant, the existing lots adjacent to the subject property will be extended to the creeks and canals that connect to Smith Creek, and no additional lots will be added to the subdivision if this rezoning is approved. The subject site contains both swamp forest and brackish marsh, which have additional development restrictions associated with it. Additionally, the applicant placed the subject site, and about 100 acres to the northwest, into a conservation easement that prevents development within these areas. The applicant excluded about five acres of heavy industrial land from this request to limit any potential impacts and additional regulations on the adjacent industrial land to the south because current County zoning regulations require additional setbacks and buffering for industrial development when located next to residentially zoned land. The primary route to access the subdivision is off Castle Hayne Road, which is about a half mile north of the MLK Parkway. Preservation Point completed a TIA and received approval in 2019. The applicant is currently in the process of installing the required improvements in accordance with NCDOT standards. As the applicant has indicated that no additional lots will be added, an update to the TIA is not required. Details are included in the staff report. There are two major NCDOT projects planned for the area including the construction of a roundabout at the intersection rd of Castle Hayne Road and North 23 Street which is expected to begin in 2027. Outside of Preservation Point, Hanover Lakes is the only other development under construction in the area. That subdivision has about 100 homes left before it is completed. Again, the marsh within the area is part of the rezoning request, as well as the boardwalk that will connect the mainland to the amenity island. Roads have been built and the amenity clubhouse is currently under construction. However, at this time, no homes have been completed. As for compatibility, the request is compatible with the surrounding area because it will expand the existing subdivision without creating additional lots or generating additional traffic, and with the existing conservation easement on record, all development in the area is prohibited. In addition, the easement will help preserve the wetlands and environmental resources which further aligns the site with the Conservation place type. The 2016 Comprehensive Plan classifies the site as Conservation. The proposed R-15 rezoning, in conjunction with the conservation easement on file for the subject property, is generally consistent with the goals of the Comprehensive Plan because it is a more appropriate designation than the existing I-2, Heavy Industrial zoning, would not allow additional residential units to be built in this area, and would protect the site’s natural environment, water quality, and wildlife habitats. The Planning Board considered this application at the December 3, 2020 meeting and recommended approval of the application (5-0), finding it to be consistent with the purposes and intent of the Comprehensive Plan because it is a more appropriate designation than the existing I-2 zoning and, with the conservation easement on record for the property, additional protections are provided for the site’s natural environment, water quality, and wildlife habitats which restrict development on the subject site. It also found approval of the rezoning request is reasonable and in the public interest because the request removes an industrial zoning designation from land that is environmentally sensitive and offers increased protection to the adjacent residential property and wetlands. In addition, the boundary of the proposed rezoning was designed to limit additional regulations on the adjacent remaining industrial property. Chair Olson-Boseman thanked Mr. Smith for the presentation and invited the applicant to make remarks. Frank Braxton with Coastal Land Design, PLLC on behalf of property owner, Preservation Point Partners, LLC stated this is a part of an ongoing subdivision that he has been working on for 30 years. It has taken a long time and there have been a lot of changes, but he thinks his client has a good product that is on the ground. The request for the rezoning is pretty much a housekeeping project. The subject site was a completely industrial area, but it was a wetland and marsh area that could not be developed. This request will bring it back into a zoning that is compatible with the subdivision. One of the main attributes of the development is the view and what people want is a view to NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REMOTE REGULAR MEETING, JANUARY 19, 2021 PAGE 750 the river or to the marsh. It was felt that the best way to maintain that was to put it in a conservation easement that was strong enough that it could be enforced, but also to extend the lines from the lots so the lot owner has ownership of their view and not a homeowner’s association (HOA), which could change the rules. The only way this can be on the subject site is by rezoning it to a residential because residential uses are not allowed in current zoning. The request is not to increase density, and while it is a perception it is also ownership. It cannot be developed and it is under the control of the conservation easement. He would appreciate the Board approving the rezoning request. In response to Board questions, Mr. Braxton stated that a homeowner cannot launch a kayak or canoe into the creek at the subject site. The amenity island is planned to have canoe/kayak launches and it does have power boat or sailboat launches on the river. However, additional development is not allowed and this request is purely for the view. In response to additional Board questions, Mr. Braxton stated that research was done on the bordering properties and it was found that most of them have the rear of their properties in the same area that the marshes and wetlands are in. As such, they really cannot be developed in that area. This project did not impact any of the bordering properties with the exception of one that has a communication tower on it, and that could possibly be developed or expanded, but it would be unfair to put another burden on them for additional setbacks. It was left in the I-2 zoning. He is not aware of any proposed projects going into the I-2 site. Again, most of the I-2 that his client has on the property is in the same condition as the wetlands. The site does fine with water that comes out of the rivers and tributaries. The peninsula that is actually being built upon, the uplands, has a lot of relief in that particular area and the area being constructed for housing is well above the flood line. 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: Chair Olson-Boseman MOVED, SECONDED by Vice-Chair Hays the proposed rezoning to an R-15 district as the Board finds it to be consistent with the purposes and intent of the Comprehensive Plan because it is a more appropriate designation than the existing I-2 zoning and, with the conservation easement on record for the property, additional protections are provided for the site’s natural environment, water quality, and wildlife habitats which restrict development on the of the rezoning request is reasonable and in the public interest because the request removes an industrial zoning designation from land that is environmentally sensitive and offers increased protection to the adjacent residential property and wetlands. In addition, the boundary of the proposed rezoning was designed to limit additional regulations on the adjacent remaining industrial property. Upon roll call vote, the MOTION CARRIED UNANIMOUSLY. 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 1, 1972 is hereby incorporated as part of the minutes and is contained in Zoning Book II, Section 9A, Page 60. PUBLIC HEARING AND APPROVAL OF A REQUEST BY DESIGN SOLUTIONS ON BEHALF OF PROPERTY OWNERS, WILLIAM S. AND TARA S. HACKNEY, AND PROCLAIM HOLDINGS, LLC, TO REZONE APPROXIMATELY 3.28 ACRES OF LAND LOCATED AT 813 AND 817 PINER ROAD FROM (CUD) O&I, CONDITIONAL USE OFFICE AND INSTITUTIONAL DISTRICT, TO (CZD) CB, CONDITIONAL COMMUNITY BUSINESS DISTRICT, IN ORDER TO DEVELOP A LANDSCAPE CONTRACTOR’S OFFICE (Z20-21) Chair Olson-Boseman opened the public hearing and requested staff to make the presentation. Senior Planner Brad Schuler presented the request by Design Solutions on behalf of property owners, William S. and Tara S. Hackney, and Proclaim Holdings, LLC, to rezone approximately 3.28 acres of land located at 813 and 817 Piner Road from (CUD) O&I, Conditional Use Office and Institutional District, to (CZD) CB, Conditional Community Business District, in order to develop a landscape contractor’s office. The existing zoning (CUD) O&I allows the site to be used for office and recreation (golf training center) uses. Currently, two office buildings and one dwelling unit are located on the site. The dwelling was constructed on the site prior to the property being initially zoned as a conditional O&I district in 1997, and was approved to be converted for use as an office and the golf training center in 2002. However, the recreation use that was intended for the site never commenced operation and the dwelling still remains as a legal nonconformity. With the applicant's proposal, the existing office buildings will remain, and a new storage building and company truck parking area are proposed to be constructed behind the existing structures. The proposal would also allow for the existing dwelling to be used as a live/work unit for the business, which requires a special use permit (SUP) in the proposed CB district. The applicant has applied for a separate SUP application for the live/work unit (S20-04) that is being processed concurrently with this rezoning application. In regard to transportation, Piner Road is an NCDOT maintained minor arterial street and is approximately one-half mile from the Monkey Junction intersection and also from Myrtle Grove Road. It is estimated that the proposal will generate about the same number of trips as what is currently allowed on the site. Generally, contractors do not generate many trips within the peak hours as many of their employees arrive and leave outside of the typical morning and afternoon peak hours. There have been three other developments in the area which have completed TIAs, details of which are in the staff report. There is also one major NCDOT project that will make improvements to the Monkey Junction intersection, however that project is currently on hold at this time. There are NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REMOTE REGULAR MEETING, JANUARY 19, 2021 PAGE 751 five active subdivisions in the area with about 600 homes remaining to be constructed. Most of the future homes will be in the Villages at Knott's Landing subdivision, which is located north of Cedars Road along Carolina Beach Road. As for compatibility with the area, the business will continue to use the existing office buildings on the site and as currently zoned, it is estimated the site would generate about five to 10 trips during the weekday peak hours and 20 peak hour trips on Saturday (generated from the recreational use). The estimated number of peak hour trips anticipated with the proposed development is below the 100 peak hour trip threshold that triggers the ordinance requirement for a TIA. NCDOT has reviewed the request and provided preliminary comments indicating that a revised driveway permit will be required and that the driveway radius may need to be enlarged to accommodate the vehicles associated with the business. Again, the site has been used for office related uses since the late 1990s and the existing office buildings will continue to be used by the business. The 2016 Comprehensive Plan classifies the site as General Residential and is adjacent to the Monkey Junction growth node. The proposed office and live/work use is generally consistent with the plan because it is located on a site that provides some transition between the middle school and adjacent residential properties and would allow for reuse of existing structures. The Planning Board considered this application at its November 5, 2020 meeting and recommended approval of the application (4-0), finding it to be consistent with the purposes and intent of the Comprehensive Plan because it will provide an appropriate transition between the adjacent middle school and residential properties. The Planning Board also found approval of the rezoning request is reasonable and in the public interest because the proposal would allow reuse of the existing structures and because the proposed lawn care business is estimated to not increase the amount of traffic generated from the site. If the rezoning is approved, the project will be subject to TRC review and zoning compliance review to ensure compliance with all applicable development regulations. Chair Olson-Boseman thanked Mr. Schuler for the presentation and invited the applicant to make remarks. Cindee Wolf with Design Solutions, representing the property owners, William S. and Tara S. Hackney, and Proclaim Holdings, LLC, stated Dick and Connie Hanhe, the owners of Freedom Lawns, have been in business for many years, and currently lease their property. They are interested in buying a piece of property and developing it themselves so that they are owner-owned. Since all services for Freedom Lawns are performed offsite, the existing offices and the deep track of the site fit perfectly. Freedom Lawns has customers all over the County and the Piner Road location and arterial for the community provides convenient access north, east, south, and west. There are two existing buildings at the front of the property, which will be occupied by administrative offices and for field crews to come and go from throughout the day. The new storage building in the back and parking area will be to accommodate business vehicles during off hours and is proposed towards the center of the property, out of sight from the public roadway and will be visually screened from both the adjacent middle school and the residential track. An access driveway will extend from the existing office parking up front for vehicular travel and emergency services. This is not an intensive use in anyway as crews arrive in the mornings, transfer to the work vehicles, and leave to go to offsite appointments. The crews return late afternoon, not during the peak hours, when finished for the day and leave the site. It is not noisy, all products are nontoxic, and no materials are stored outside. Ms. Wolf concluded her presentation stating that she and her clients hope the rezoning request is approved and if so, there will be a petition forthcoming to allow the existing house on the site to become a live/work or caretaker unit. It is felt the special use permit for that is excellent and the house is well suited for one of the employees to keep an eye on the grounds on nights and weekends. She then provided an overview of the site plan. If approved, Freedom Lawns will be located near the neighborhoods that it services and it should not have any impact on any of the surrounding properties. Chair Olson-Boseman announced that no one signed up to speak in favor or in opposition to the request and closed the public hearing. In response to Board questions, Ms. Wolf stated that on the middle school side of the site, it is the parking lot for the school and bus circulation and there is an existing ditch and vegetation. Her clients will be required to supplement the vegetation on that side and it is not necessary to have a fence in that area. The back of the storage building that will be installed will be facing the school, so no one would be able to see the trucks parking in front of it. Again, as the buffer can be addressed with vegetation, there did not appear to be a necessity for a fence. Concerns expressed by a neighbor in the Highgrove Estates subdivision about noisy activity were addressed. No heavy equipment will be stored on the site. In response to additional Board questions, Ms. Wolf stated that generally sewer force mains for small projects such as this would blow back unreasonably due to the force main size as it would not go to a lift station that would be the equilibrium. There is only one force main that is available to the site and there is no gravity within a reasonable amount of area. There is already an operable septic system on the site for the house and office. There is no intention to put any facilities in the storage building because the field crew office is already on the septic system. There will be about 10 employees who could be in the buildings, but will be offsite most of the day. Before occupancy is fully certified, an environmental health review will be done as part of the TRC review. Again, there is an existing and well working septic system as far as her research has gleaned. Mr. Schuler further confirmed that Ms. Wolf was correct that an environmental health review will be part of the TRC review. Hearing no further discussion, Chairman Olson-Boseman asked for the Board’s direction on the request. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REMOTE REGULAR MEETING, JANUARY 19, 2021 PAGE 752 Motion: Vice-Chair Hays MOVED, SECONDED by Commissioner Barfield to approve the proposed rezoning to a conditional CB district as the Board finds it to be consistent with the purposes and intent of the Comprehensive Plan because it will provide an appropriate transition between the adjacent middle school and residential properties. The Board also finds approval of the rezoning request is reasonable and in the public interest because the proposal would allow reuse of the existing structures and because the proposed lawn care business is estimated to not increase the amount of traffic generated from the site. Upon roll call vote, the MOTION CARRIED UNANIMOUSLY. 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 APRIL, 1971 is hereby incorporated as part of the minutes and is contained in Zoning Book I, Section 4, Page 116. COMMITTEE APPOINTMENTS Appointment to the New Hanover County Parks and Recreation Advisory Board Chair Olson-Boseman reported that one vacancy exists on the New Hanover County Parks and Recreation Advisory Board with one application available for consideration. Chair Olson-Boseman nominated Joseph Irrera for appointment. Vice-Chair Hays seconded the nomination. Chair Olson-Boseman called for a roll call vote for the nomination on the floor. Roll Call Vote Results: The Board voted UNANIMOUSLY to appoint Joseph Irrera to the New Hanover County Parks and Recreation Advisory Board to serve an unexpired term with the term to expire June 30, 2022. Appointment to the New Hanover County Tourism Development Authority Chair Olson-Boseman reported that one vacancy exists on the New Hanover County Tourism Development Authority with one application available for consideration. Chair Olson-Boseman nominated Jason S. Bryant for reappointment. Commissioner Barfield seconded the nomination. Chair Olson-Boseman called for a roll call vote for the nomination on the floor. Roll Call Vote Results: The Board voted UNANIMOUSLY to reappoint Jason S. Bryant in the Vacation Rental Properties more than 100 Owner/Manager category to the New Hanover County Tourism Development Authority to serve a three-year term with the term to expire December 31, 2023. Appointment to the Wilmington Regional Film Commission Chair Olson-Boseman reported that one vacancy exists on the Wilmington Regional Film Commission with three applications available for consideration. Commissioner Barfield nominated Bill Vassar for reappointment. Commissioner Zapple seconded the nomination. Hearing no further nominations, Chair Olson-Boseman called for a roll call vote for the nomination on the floor. Roll Call Vote Results: The Board voted UNANIMOUSLY to reappoint Bill Vassar to the Wilmington Regional Film Commission to serve a three-year term with the term to expire January 31, 2024. PUBLIC COMMENT ON NON-AGENDA ITEMS Chair Olson-Boseman stated there were no public comments on non-agenda items. ADDITIONAL AGENDA ITEMS OF BUSINESS Commissioner Barfield thanked Assistant County Manager Tufanna Bradley and the Public Health staff for their efforts in helping citizens obtain their vaccine shots. He encouraged citizens to be patient with being able to schedule appointments as supplies are limited. The County’s goal is to make sure that everyone who wants to be inoculated can be. He further encouraged people to continue wearing masks, washing their hands, and maintain the recommended social distance. th Commissioner Zapple stated that he hoped the January 20 inauguration events would be peaceful and respectful while honoring and celebrating American democracy. As he grew up in the Washington, D.C. area and his father worked on Capitol Hill for over 30 years, it is a special place to him as it is to many Americans. Chair Olson-Boseman thanked the teachers in this community. She thinks they are doing an amazing job, given the situation. She cannot thank her son’s teacher, Ms. Bishop, enough for all she is doing not only for him, but for all the students. It is important for the parents and students to know that the County Commissioners are committed to education. It was an exciting day to be able to give the teachers the bonus they certainly deserved and while she is only speaking for herself, she hopes that it is not just a one-time bonus. Teachers pay needs to be raised higher and it needs to be in the top ten in the state. The Board will look to County Manager Coudriet and his NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REMOTE REGULAR MEETING, JANUARY 19, 2021 PAGE 753 leadership for making that happen. She is committed to education, funding the schools, and she, along with the other County Commissioners, want to thank the teachers for being able to pivot on a dime and all they are doing for our students. She empathizes with the school board and administration team in having to make these hard decisions. She had to do the same early on during the pandemic, so she does understand how hard it is. However, this Board will always have a teacher's back and is there for education. MEETING RECESSED There being no further business, Chair Olson-Boseman recessed the meeting at 6:58 p.m. and stated that the meeting will reconvene on Thursday, January 21, 2021, at 11:00 a.m. in the Andre’ Mallette Training Rooms at the New Hanover County Government Center, 230 Government Center Drive. At that time, the Board will consider any public comments received during the twenty-four (24) period. The Board will also need to vote at that time, on whether to ratify the votes taken on each public hearing held today. 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 online at www.nhcgov.com.