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BOA-966 Variance Application 1724 Gardner Dr. (ILM)Exhibit A to Application for Variance The Wilmington International Airport (ILM) is a vital asset to the community as the only international airport serving southeastern North Carolina, and the ILM Business Park is a key part of ILM’s success. As indicated in an ILM press release on April 7, 2022, seventy-five (75) acres of new ground leases have been signed for the ILM Business Park in the last six months alone. For several years, the New Hanover County Airport Authority has worked diligently to attract a hotel to the ILM campus. The Applicant is proposing to invest $40 million dollars to bring a luxury Crowne Plaza Hotel to the ILM campus to serve both business and leisure travelers. As stated in ILM’s press release: “The six-story, 150-room hotel will host a variety of spaces and amenities to meet any business or leisure need. Guests will experience Crowne Plaza’s unique design style which integrates work and personal needs, featuring co-working zones and relaxing spaces for both productivity and restoration. The Crowne Plaza Wilmington International Airport additionally will offer flexible, all-day dining across its restaurant, lounge and rooftop bar, allowing guests to eat or snack while conducting business or personal engagements.” The illustration below demonstrates the very high-quality architecture and design of the proposed luxury hotel, which will be a great asset for ILM and will attract future businesses and investment in the ILM Business Park and the entire region. The project is very important economically not only to ILM but also to all of New Hanover County, including the creation of approximately 125 permanent jobs, as well as the benefits to business and leisure travelers on a regional basis. In order to construct the hotel, which will require 95 to 100 feet in height, the Applicant requires a 65-foot variance pursuant to NHC UDO § 5.10.5 and NHC UDO § 10.3.11 from the standard 35- foot building height provision in the Airport Commerce (AC) District set forth in NHC UDO § 3.4.9.D. Without the height variance, construction of the hotel as designed and intended cannot be accomplished, and ILM will not be able to achieve its longstanding goal and vision of attracting a very high-quality hotel, including conference/meeting space and signature restaurant, lounge and rooftop bar overlooking the ILM campus, which will serve as a catalyst for future growth and development in the ILM Business Park. Additionally, and as explained more fully herein, it should be noted that airport zoning variance requests are unique and fall under special provisions of N.C. General Statutes Chapter 63 (Aeronautics), Article 4 (Model Airport Zoning) and NHC UDO Section 5.10 (Airport Height Restriction). Unlike other provisions of the UDO, Section 5.10 is adopted by the NHC pursuant to the authority conferred by N.C.G.S. § 63-30 et seq. N.C.G.S. § 63-32(b) specifically provides for height variance requests within airport zoning districts as follows: (b) Variances. – Any person desiring to erect any structures, or increase the height of any structure, or permit the growth of any tree, or otherwise use his property, in violation of airport zoning regulations adopted under this Article, may apply to the board of appeals, as provided in G.S. 63-33, subsection (c), for a variance from the zoning regulations in question. Such variances shall be considered pursuant to G.S. 160D-705 and be in accordance with the spirit of the regulations and this Article. N.C.G.S. § 63-32(b). Furthermore, N.C.G.S. § 63-33(c), sets forth the variance procedure as follows: (c) Administration of Airport Zoning Regulations – Board of Appeals. – Airport zoning regulations adopted under this Article shall provide for a board of appeals to have and exercise the following powers: (1) To hear and decide appeals from any order, requirement, decision, or determination made by the administrative agency in the enforcement of this Article. (2) To hear and decide special use permits upon which such board may be required to pass under such ordinance. (3) To hear and decide specific variances. A zoning board of adjustment may be appointed as the board of appeals. Otherwise, the board of appeals shall consist of five members, each to be appointed for a term of three years and to be removable for cause by the appointing authority upon written charges and after public hearing. G.S. 160D-405 and G.S. 160D- 406 shall be applicable to appeals, special use permits, and variance petitions made pursuant to this section. N.C.G.S. § 63-33(c). Accordingly, this is a very unique variance request, and the statute provides that it should be considered pursuant to the general variance criteria in N.C.G.S. § 160D-705 and “in accordance with the spirit of the regulations and this Article [(N.C.G.S. Chap. 63, Article 4)]”. 1. Unnecessary hardship would result from strict application of the ordinance. It shall not be necessary to demonstrate that, in the absence of the variance, no reasonable use can be made of the property. ILM is a major regional and international transportation center, and the ILM Business Park is a key part of its success. The New Hanover County Airport Authority has worked for years to attract a luxury hotel with a very high-quality design to the ILM campus. It is not economically feasible to construct a hotel of the intended design and quality on the subject property under the very limited, 35-foot height standard in the AC - Airport Commerce District. As proposed, 80% of the subleased site is covered by non- income producing parking spaces, and the planned parking is the minimum required by code. If one were to attempt to spread the building out to meet a 35-foot height requirement, the parking requirement would require subleasing so much additional land as to make the project economically not possible. A smaller building to maintain the same subleased area and the subsequent reduction in the number of hotel rooms would also make the hotel economically unfeasible and would defeat the intended purpose of bringing a hotel to ILM. Without a much needed height variance for the hotel, ILM will not achieve its long sought-after goal of having a high-quality hotel on this site, resulting in a loss of more than $40 million dollars in investment into the ILM Business Park, a loss of approximately 125 permanent jobs for this project alone, and a loss to the overall plan and vision for attracting future business development, growth and jobs to the region. Also, it is important to note that the project is on a strict development timeline. Under the sublease, all approvals must be completed for a construction start in late September 2022 in order to maintain the development schedule and meet the project deadlines. The interest rate for the development loan will not be set until all approvals are in place, and it is crucial to get this rate locked as soon as possible. In this rate environment, a few months delay could threaten the feasibility of the project if interest rates go up as predicted. That is why a variance is the only solution to this particular issue from a timing standpoint. Without a variance, there would be a tremendous economic hardship to the Applicant, resulting in a loss of this very significant project for the entire region. As stated in New Hanover County’s Comprehensive Plan: “ILM receives no public funds or dollars from the County and therefore must be totally self-sufficient, generating funds to support its $7.4 million annual budget. With air carriers looking for ways to reduce their costs, they want airports to reduce the fees they charge airlines. Therefore, ILM has to find alternative revenue streams to remain financially solvent. The ILM Airport is aggressively promoting and receiving interest in nearly 230 acres of available landside area for development as business office and commercial purposes for both aviation and non-aeronautical companies.” (Comprehensive Plan, Existing Conditions, p. 32). Such a hardship would be entirely unnecessary as the New Hanover County UDO anticipates variances to the Airport Height Restriction. ILM must be able to preserve its flight corridors and ensure aviation safety. ILM and the County must also comply with all FAA regulations and requirements with regard to development within the ILM Business Park. A baseline height of 35’ feet is set within the AC – Airport Commerce District for good reason; however, the County has also adopted a special section of the UDO (Section 5.10 Airport Height Restrictions) pursuant to N.C.G.S. Chapter 63, which specifically contemplates and allows height variances within the Airport Commerce District where appropriate and safe, pursuant to appeal board (Board of Adjustment) approval. The purpose of the ordinance is not to prevent the construction of buildings taller than 35 feet at ILM; rather, the ordinance contemplates review of proposed building heights on a case-by-case basis where appropriate and in accordance with the spirit of N.C.G.S. Chapter 63, Article 4. The site of this proposed hotel structure is safely located away from any flight paths/corridors and is an appropriate location for a structure taller than 35 feet. It is also significant to note that the County recently amended the UDO to provide height for hotels up to 100 feet in the I-1 and B-2 Districts. Accordingly, hotels at a height of 100 feet are entirely consistent with the current UDO provisions, where appropriately distanced from existing residential development. Additionally, the project is required to go through the FAA review and approval process to ensure compliance with all applicable flight safety standards and requirements. 2. The hardship results from conditions that are peculiar to the property, such as location, size or topography. Hardship resulting from personal circumstances, as well as hardships resulting from conditions that area common to the neighborhood or general public, may not be the basis for granting a variance. This particular property and the height variance request are entirely unique. ILM is the one and only international airport serving New Hanover County and the 8.5 county catchment area (where passengers live), and the County is very fortunate to have such a tremendous transportation and economic development asset for our region. It is a unique property, uniquely situated, and has a unique variance procedure under Chapter 63 of the General Statutes. The property is administered by the New Hanover County Airport Authority. As stated above, one of the major goals of the New Hanover County Airport Authority is to bring a hotel to the ILM campus in order to continue to serve the needs of travelers in our region and to continue to be good stewards of our community airport and meet current and future growth needs. As noted above and stated in the NHC Comprehensive, ILM does not receive public funds from the County and must be self- sufficient, which creates both unique challenges and opportunities for the property. Additionally, due to economic challenges facing the airline industry, ILM must find alternative revenue streams, including growth and development of the ILM Business Park, in order to preserve and maintain the economic health of our region’s only international airport. Additionally, the Federal Aviation Administration (FAA) will have final approval on the heights of any structures and will not allow anything that is unsafe or would interfere with flights. 3. The hardship did not result from actions taken by the applicant or the property owner. The act of purchasing property with knowledge that circumstances exist that may justify the granting of a variance shall not be regarded as a self-created hardship. Neither the Applicant nor the property owner created the hardship. The Applicant is only attempting to deliver a high-quality project that has been a major goal of the Airport Authority for several years within a very unique location subject to unique development rules and regulations. The proposed development will have a positive economic impact on the airport and the entire County, but it must do so in an economically feasible way and within all applicable regulations, including FAA requirements. The Applicant does not have control over the existing regulations and does not control the current conditions of the economy. The property owner, the New Hanover County Airport Authority, and New Hanover County must also work within FAA regulations with regard to any proposed construction at ILM. Additionally, part of the hardship is due to the very unique safety and land use issues found only within airports and related airport business parks. The County’s standard 35-foot height limitation generally within the Airport Commerce District as a whole is prudent and necessary from an aviation safety standpoint, subject to permitted and necessary additional height allowances on a case-by-case basis through the height variance process. Aviation safety also requires compliance with all FAA rules and regulations, which is why the N.C. General Statutes and the NHC UDO treat airport height restrictions differently. A minimal baseline 35-foot height with an additional code section (UDO § 5.10.5) specifically allowing for height variances based on the specifics of each individual project or proposed building is a reasonable and necessary method of administering and regulating heights within the airport property. The North Carolina General Statutes specifically authorize the Board to grant variances when appropriate in the spirit of the enabling statute, which is designed not to frustrate economic development but to ensure airport safety and FAA compliance. 4. The requested variance is consistent with the spirit, purpose and intent of the ordinance, such that public safety is secured, and substantial justice is achieved. As stated above, this variance request presents a very unique circumstance and situation. The County, consistent with the authority conferred by Article 4 of Chapter 63 of the North Carolina General Statutes, adopted NHC UDO § 5.10 Airport Height Restrictions in part to allow for variances to building heights at ILM where appropriate and permitted by the FAA on a case-by-case basis, while also maintaining a baseline 35-foot height restriction generally across the airport property and zoning area. The proposed hotel is very important to ILM, the County and the community as a whole. It will be a significant benefit and investment of $40 million dollars into the local economy, creating approximately 125 permanent jobs for our region. It will also serve the needs of business and leisure travelers and promote additional economic growth and development of ILM and the ILM Business Park, which is fundamental in the economic success of ILM—a tremendous asset to New Hanover County and the entire region. Additionally, the request is consistent with the County’s Comprehensive Plan. The Comprehensive Plan acknowledges the vital role of the airport in our community, as stated in the plan in Existing Conditions p. 29: “The Wilmington International Airport (ILM) is a key economic engine for our 8.5 county catchment area (where our passengers live) and a significant regional asset for our community.” (emphasis added). The NHC Comprehensive Plan designates the subject property as a Commerce Placetype. A few of the stated goals for this placetype include:  Promote fiscally-responsible growth.  Use public infrastructure improvements to leverage private investments.  Support business success.  Support workforce development and economic prosperity for all.  Conserve and enhance our unique sense of place to attract individuals, companies and organizations. Hotel Location As shown above, the Comprehensive Plan states that Commerce Zones are meant to serve as employment and production hubs and that industrial uses, and complementary office and commercial uses are appropriate. It also specifically allows for building heights up to 7 stories. All of this is entirely consistent with the proposed project. The proposed hotel project is entirely consistent with and promotes all of these goals. The Applicant will be making a very large economic investment in our public airport property, creating jobs, increasing the tax base, and assisting in attracting additional companies and organizations to the ILM Business Park and our community. Additionally, to ensure aviation safety, the FAA must approve the building height for the proposed project. Accordingly, public safety will be secured through the FAA review process. In summary, this project is a much needed and long sought-after development project and milestone for the ILM Airport. It will be an asset to the community serving business and leisure travelers with a significant upfront financial investment that will encourage more economic development and job growth for the region. The variance request is entirely consistent with the spirit and intent of the County UDO, the County Comprehensive Plan policies and goals for growth and development, ILM’s development and growth plans, and Chapter 63, Article 4 of the North Carolina General Statutes.