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2022-08-18 Special Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 SPECIAL MEETING, AUGUST 18, 2022 PAGE 505 ASSEMBLY The New Hanover County Board of Commissioners held a Special Meeting on Thursday, August 18, 2022 at 2:10 p.m. in the Harrell Conference Room at the New Hanover County Government Center, 230 Government Center Drive, Wilmington, North Carolina. Members present: Chair Julia Olson-Boseman; Vice-Chair Deb Hays; Commissioner Jonathan Barfield, Jr.; Commissioner Bill Rivenbark; and Commissioner Rob Zapple. Staff present: County Manager Chris Coudriet; County Attorney Wanda Copley; and Clerk to the Board Kymberleigh G. Crowell. Chair Olson-Boseman welcomed those in attendance and stated that the purpose of this meeting is to discuss the County’s vision for the western bank of the Cape Fear River (western bank). STAFF OVERVIEW PRESENTATION Planning and Land Use Director Rebekah Roth presented information concerning the western bank of the Cape Fear River:  Aerial – Western Bank: Ms. Roth stated that the study area includes all the land in New Hanover County's planning jurisdiction from the Cape Fear Memorial Bridge (CFMB) to the south, to the Isabel Holmes Bridge (IHB) to the north, and everything east of the Thomas Roads Bridge. The land is divided into two portions, the first of which is Eagles Island, which is directly across from historic downtown Wilmington from just north of Chandler's Wharf to Hotel Ballast. None of this study area within New Hanover County’s jurisdiction is directly across from the historic residential areas of Wilmington. There is currently an option to buy in place for much of the property in the area south of the battleship, both for the land that is within New Hanover County's jurisdiction and land in Brunswick County's jurisdiction for the purposes of conservation. The northern portion of the western bank is directly across from northern downtown Wilmington, which has been the focus of much of the Wilmington downtown development in recent years, and it runs the length of the area from the Coastline Convention Center to the Sawmill Pointe apartments to the north. This is the only area with property currently zoned Riverfront Mixed Use and is the parcel just south of the IHB. It is also the focal point of a request for a text amendment to add an Urban Riverfront Mixed Use district to the ordinance, a request that has been tabled since January. While much of the area has been undeveloped in recent decades, the buildable areas are not pristine natural habitat. They are currently or formerly industrial sites with known or likely contamination and brownfields concerns. The timeline of this update is as follows:  April 2022 – Initial scenario identification  May-June 2022 – Background research  June-August 2022 – Stakeholder vetting  Flood hazards: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 SPECIAL MEETING, AUGUST 18, 2022 PAGE 506 As detailed at the first work session, this area of the County is currently located in a flood zone, one that is generally considered having a one percent annual chance of flooding each year, based on what FEMA currently has on their flood risk maps. In addition to current flood risks, historic data has shown that the number of flood days in said area have been increasing over the past 40 years. Climate change models show that river levels are anticipated to rise over the coming years. Those scenarios vary based on different assumptions about the rate of change. The data and models for anticipating the impacts of climate change have improved in recent years, but historically that information has been uncertain enough that staff limited its reliance on them for making land use decisions. Per enabling statutes and general land use law, the County is constrained by what it can regulate through zoning and development. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 SPECIAL MEETING, AUGUST 18, 2022 PAGE 507 There are regulatory parameters for development related to environmental resources or development vulnerability. New Hanover County is covered by the state's Coastal Area Management Act (CAMA), which includes both state and local purview of activities. The US Army Corps of Engineers govern wetlands, and as a participant in the Flood Insurance Program, the County administers flood damage prevention ordinances. In addition, any major development in said area would likely be subject to all the following review bodies:  CAMA Major Permit: US Army Corps of Engineers, Environmental Protection Agency, National Marine Fisheries Service, Fish and Wildlife Service, Wildlife Resources Commission, Division of Marine Fisheries, Division of Water Resources, Division of Water Quality, Division of Land Resources, Division of Environmental Health, Department of Transportation, Department of Environmental and Natural Resources, and the Department of Cultural Resources  Jurisdictional Wetlands: US Army Corps of Engineers  New Hanover County Technical Review Committee (TRC): Planning and Land Use, Fire, Cape Fear Public Utility Authority (CFPUA), Wilmington Metropolitan Planning Organization (WMPO), Environmental Health, North Carolina Department of Transportation (NCDOT), and Engineer/Stormwater The agencies listed above would need to see a site specific plan to determine how their respective regulations would apply. As such, they are part of the development review process, but they are not geared to inform up front policy decisions that are made prior to fully engineered development applications. Staff did consider existing infrastructure in the area. There are concerns about flooding along Battleship Road on Eagles Island, as well as potential flooding of Point Harbor Road based on the roadway’s elevation and some of the models for future flood increases. There are also potential concerns about getting on and off Highway 421, both on Eagles Island and on the northern bank properties because of the speed and amount of traffic in that area. For future projects, staff also looked at the IHB intersection improvement, which according to the current draft State Transportation Improvement Program (STIP), is scheduled for construction in 2028 and could impact access to the northern bank properties. There are some potential concerns with any traffic exiting the northern bank areas conflicting with northbound traffic on Highway 421 which is being shifted to the right to cross the IHB. There is a traffic improvement that was recommended as part of the traffic impact analysis (TIA) that was conducted for the Point Peter project which is very similar to the recommendations that were made in 2007 when the northern piece was rezoned to Riverfront Mixed Use. This improvement is for a right in right out only access to Highway 421 that would be accommodated by a loop road. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 SPECIAL MEETING, AUGUST 18, 2022 PAGE 508 Lastly, development in this area has not been incorporated in terms of water and sewer engineering plans. The County did help to invest in the extension of water and sewer lines up Highway 421 within the past five years with the intent of supporting industrial development. CFPUA requires new development to pay for lines, but capacity is allocated on a case by case basis. Now that water and sewer is available on Highway 421, developers in the area could connect and pay for it, but the capacity that they would use could potentially conflict with what is currently being intended for Highway 421 development, as well as development in downtown Wilmington. There may be the ability to connect to the south for Eagles Island, but there are some downstream impacts that would have to be considered for places like RiverLights if that were to occur. Commissioner Barfield entered the meeting at 2:23 p.m. Ms. Roth presented the following five scenarios for development:  Potential development scenarios: Conservation, Limited Use, Working Waterfront, Small Scale Mixed Use, and Urban Scale Mixed Use  Considerations:  Current policy direction  Cultural and historical context  Environmental sensitivity  Public safety  Economic impact  Required public investment  Conservation:  Benefits and opportunities:  Partnership opportunities  Address flood concerns  Most environmental protection  Likely includes clean-up  Long-term certainty  Current option to buy in place for Eagles Island  No infrastructure investment  Impacts and Constraints:  Public access could be limited  May impact transportation project viability  Acquisition of land may be difficult/costly  Long-term public management  Reduce tax base  Limited Use:  Benefits and opportunities:  Alleviates flood concerns  Provides some environmental protection  Partnership opportunities  Likely includes clean-up  More recreational and public access opportunities  Available for private, public, and non-profit investment  Contributes to Tourism  Current option to buy in place for Eagles Island  Impacts and constraints:  Long-term public management  Public investment could still be required  Could reduce tax base  Acquisition of land could be difficult/costly  Working Waterfront:  Benefits and opportunities:  Uses and structures may be more flood resistant  Likely includes clean-up  More opportunities for water access, public and private  Off-shore wind could be supported  Zoning in place  Available for private, public, and non-profit investment  Impacts and constraints:  Potential visual impact on downtown  Certain uses and intensity may impact sensitive features  CAMA constraints on boat access  Parcels smaller than optimal for some water-based industry  Public infrastructure investment could be required  Small Scale Mixed Use:  Benefits and opportunities: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 SPECIAL MEETING, AUGUST 18, 2022 PAGE 509  Clean-up required  More opportunity for water access, both public and private  Contributes to tourism  Increases tax base, jobs, lodging, and housing  Supports ongoing activation of riverfront  Impacts and constraints:  Buildable area may be limited  Significant infrastructure investment  May impact sensitive features  Additional public safety considerations  Urban Scale Mixed Use  Benefits and opportunities:  Clean-up required  More opportunity for water access, both public and private  Contributes to tourism  Increases tax base, jobs, lodging, and housing  Impacts and constraints:  Buildable area may be limited  Significant infrastructure investment  Water/Sewer capacity impacts  May impact sensitive features  Additional public safety concerns  Traffic impacts on Highway 421 Each of the scenarios would likely require some public investments, tradeoffs, and impacts based on the County’s current land use policy to allow property owners some options. While development standards mitigate potential impacts, a combination of the Limited Use, Working Waterfront, and Small Scale Mixed Use development scenarios would be the most likely to result in the County’s goals of public use and activation of the western bank area, property owner options, sensitivity to natural resources, and acknowledgement of the area's historic and cultural resources. Each scenario might not be as appropriate for each portion of the western bank. Ms. Roth concluded the update stating that staff has identified some potential next steps for moving forward:  Potential next steps:  Comprehensive Plan: Refine vision for western bank  Examples of refined vision:  Scale and form  Open space and public areas  Use options  Recommendations for additional technical studies  Apply overlay district: mitigate for known impacts  Overlay zoning districts:  Additional standards  Does not change underlay zoning  Update riverfront zoning: align with plan BOARD DISCUSSION A brief discussion was held about the scenarios that were presented. Regarding the scenarios that staff believes are the most attainable such as Limited Use, Working Waterfront, and Small Scale Mixed Use, Ms. Roth stated that the direction staff receives as to how the plan would potentially need to be modified, would inform the process for how this matter moves forward and shape future discussions. In response to Board questions, Ms. Roth stated that staff has had conversations with property owners of a couple of the northern bank properties. Staff has also had some conversations with people associated with the properties on Eagles Island, except for those involved in the option to buy. Staff has not received any indication that any of the property owners would be interested in anything other than being able to use their property in a way that makes sense for their investment, which does not include conservation. Brief discussion ensued regarding current uses of the properties. In response to Board questions about flooding in the area, Ms. Roth stated that staff is putting a lot of emphasis on flooding concerns. It is understood that there are flooding issues in the area and there is limited ability for the County to address them as a local government, or to make zoning decisions based on flooding scenarios because of enabling state statutes. There are additional environmental regulations that are applied either at the state or federal levels. The floodplain administration program is something the County administers on behalf of the federal government, but not something that is part of local zoning authority. In response to Board questions, Ms. Roth provided another overview of the portion of the western bank that has been discussed for redevelopment. Regarding considerations for what the property would environmentally look like in the future, the models used to forecast erosion and sea level rise are based on assumptions and have not been used to make zoning decisions in the past. However, those models could be used when looking at property acquisition or investments when working with more of a Limited Use development scenario. Regarding when to NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 SPECIAL MEETING, AUGUST 18, 2022 PAGE 510 engage state or federal agencies, those agencies generally must be provided with a proposal for them to feel comfortable giving a decision about how their regulations apply. The County could potentially fund some local technical studies that assist with planning and zoning decisions, however if a project can meet the regulatory environmental standards that are not normally applied by local government, except for the floodplain protection ordinances, then a project can be built. In response to Board questions about not having a hydrology study on hand, Ms. Roth stated that type of study could be appropriate upfront and could inform whatever policy recommendations are in place in the County’s plan. Regarding infrastructure, Commissioner Barfield stated that he is concerned about how to service infrastructure that is under water such as water and sewer lines. Further discussion was held about moving forward with technical studies and challenges of developing the western bank. It was the consensus of the Board for staff to proceed with having the hydrology and technical studies done and engage with federal and state partners. Regarding the clean-up component of each development scenario, Ms. Roth stated that if it were required by the County, the County would either need to purchase the property or create some sort of program to be able to assist with private development. For something like a conservation scenario, the clean-up would be the responsibility of the party acquiring the property for conservation. There are opportunities to utilize brownfields support programs that are not necessarily tied to conservation uses where the County could help support the private developers to conduct that type of activity. In response to Board questions regarding the annexation issue for Leland, Ms. Roth stated that it is her understanding that the applicant withdrew their application. However, the property is still considered to be contiguous to Leland's boundaries so requests for annexation are not off the table. There are a few properties aside from Point Peter that fall into the technical limits for annexation into Leland. Per state statute, if a property is separated only by a waterway, a state owned piece of property, or a highway, then it is eligible to be considered contiguous for annexation purposes. In response to further Board questions, staff is not aware of any discussion about the City of Wilmington having a desire to annex the property. NEXT STEPS County Manager Coudriet stated that based on the Board’s direction, staff will put together a scope of work, looking at what is technically feasible from the conditions of the land, complete those reports and analyses and bring them back to the Board to use to start making policy decisions about how zoning should or should not change on that side of the river. He added that the work will take a bit of time. In response to Board questions, Ms. Roth stated that she can also provide the Board with brownfields information and past uses for those properties. She believes there is already an agreement in place for Eagles Island. Staff will also provide information on the County’s role to manage brownfields cleanup and how that looks financially or otherwise. A brief discussion was held about addressing the text amendment request that was tabled in January 2022. By general consensus, the Board directed County Manager Coudriet and Ms. Roth to bring the matter back to the Board with a recommendation to deny. County Manager Coudriet stated that once that matter is addressed, staff will be able to focus on the technical review to put the Board in a position to make longer term policy decisions. ADJOURNMENT There being no further business, Chair Olson-Boseman thanked Ms. Roth for the presentation and adjourned the meeting at 3:10 p.m. Respectfully submitted, Kymberleigh G. Crowell Clerk to the Board Please note that the above minutes are not a verbatim of the New Hanover County Board of Commissioners meeting.