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2023-08-07 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 AUGUST 7, 2023 REGULAR MEETING PAGE 838 ASSEMBLY The New Hanover County Board of Commissioners met August 7, 2023, at 4:00 p.m. in Regular Session in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington, North Carolina. Members present: Chair Bill Rivenbark; Vice-Chair LeAnn Pierce; Commissioner Jonathan Barfield, Jr.; Commissioner Dane Scalise; and Commissioner Rob Zapple. Staff present: County Manager Chris Coudriet; County Attorney K. Jordan Smith; and Clerk to the Board Kymberleigh G. Crowell. INVOCATION AND PLEDGE OF ALLEGIANCE Pastor Edwrin Sutton, The Sending Church, provided the invocation, and Chair Rivenbark led the audience in the Pledge of Allegiance to the Flag. APPROVAL OF CONSENT AGENDA Chair Rivenbark requested a motion to approve the Consent Agenda as presented. Motion: Commissioner Barfield MOVED, SECONDED by Vice-Chair Pierce to approve the items on the Consent Agenda as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA Approval of Minutes – Governing Body The Commissioners approved the minutes of the July 13, 2023 Agenda Review and the July 17, 2023 Regular Meeting. Adoption of Budget Amendments – Budget The Commissioners adopted budget amendment 24-001 which amends the annual budget ordinance for the fiscal year ending June 30, 2024. A copy of the budget amendment is hereby incorporated as part of the minutes and contained in Exhibit Book XLIX, Page 14.1. Approval of a Request by the City of Wilmington to Waive Landfill Tipping Fees for the nCino Sports Complex project – Environmental Management The Commissioners approved the request by the City of Wilmington to waive landfill tipping fees for the nCino Sports Complex project with a cap of 5,000 tons. Adoption of a Resolution of Support for the Wilmington Urban Area Metropolitan Planning Organization's (WMPO's) Resilience Improvement Planning Grant Application through the United States Department of Transportation’s Promoting Resilient Operations for Transformative, Efficient, and Cost-saving Transportation (PROTECT) Program – Planning The Commissioners adopted the resolution of support for the grant application to be submitted by the WMPO to develop a resilience improvement plan for the Cape Fear region through the United States Department of Transportation’s Promoting Resilient Operations for Transformative, Efficient, and Cost-saving Transportation (PROTECT) Program. A copy of the resolution is hereby incorporated as part of the minutes and contained in Exhibit Book XLIX, Page 14.2. REGULAR ITEMS OF BUSINESS CONSIDERATION AND ADOPTION OF THE 2023 NATIONAL IMMUNIZATION AWARENESS MONTH PROCLAMATION Chair Rivenbark read the proclamation into the record recognizing August 2023 as National Immunization Awareness Month in New Hanover County. Public Health Director Jonathan Campbell expressed appreciation to the Board for considering the proclamation. Motion: Commissioner Barfield MOVED, SECONDED by Commissioner Zapple to adopt the proclamation recognizing August 2023 as National Immunization Awareness Month in New Hanover County. Mr. Campbell stated in response to questions that as medical technology advances, vaccines have developed and shown effectiveness in preventing communicable diseases. He will ensure that breastfeeding is included in future resolutions to recognize it as a natural option that can also provide protection for babies. The Commissioners stressed the importance of citizens discussing with their physicians which vaccinations they and/or their children should take as it is a personal decision. Upon vote, the MOTION CARRIED UNANIMOUSLY. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 AUGUST 7, 2023 REGULAR MEETING PAGE 839 A copy of the proclamation is hereby incorporated as part of the minutes and contained in Exhibit Book XLIX, Page 14.3. APPOINTMENT OF VOTING DELEGATE TO THE 2023 NORTH CAROLINA ASSOCIATION OF COUNTY COMMISSIONERS (NCACC) ANNUAL CONFERENCE Chair Rivenbark asked for a nomination of a County Commissioner to be designated as the voting delegate for the NCACC Annual Conference to be held August 24 – 26, 2023. Motion: Commissioner Zapple MOVED, SECONDED by Chair Rivenbark to appoint Commissioner Barfield as the voting delegate for the 2023 NCACC Annual Conference. Upon vote, the MOTION CARRIED UNANIMOUSLY. CONSIDERATION AND APPROVAL OF AN AMENDMENT TO THE DEVELOPMENT AGREEMENT TO DECREASE THE GUARANTEED MAXIMUM PRICE FOR THE REDEVELOPMENT OF THE WILMINGTON CITY BLOCK BOUNDED BY CHESTNUT STREET, GRACE STREET, AND NORTH THIRD STREET; AND CONSIDERATION AND ADOPTION OF A RESOLUTION AUTHORIZING THE NEGOTIATION OF AN INSTALLMENT FINANCING CONTRACT NOT TO EXCEED $57 MILLION, DIRECTING THE PUBLICATION OF NOTICE WITH RESPECT THERETO, AND PROVIDING FOR CERTAIN OTHER RELATED MATTERS Chief Facilities Management Officer Sara Warmuth presented the following information regarding the amendment to the development agreement and Local Government Commission (LGC) application submittal and public hearing:  Project Grace:  Project Vision:  A new 95,000 square foot purpose-built, modern facility  A space that brings the Public Library and Cape Fear Museum together to enhance the visitor’s experience  Library will include spaces for adults, children, teens, and local history  Museum will include an immersive theater, interactive galleries, and space for traveling exhibits  Shared space will include multi-purpose rooms and an outdoor terrace  Development Agreement – Budget:  Financed through debt issuance *This cost does not include direct purchases to be made by the county such as FF&E \[furniture, fixtures, and equipment\], special inspections, and exhibit design, fabrication, and installation. These direct costs would be financed with existing revenue and would not be financed through debt. Ms. Warmuth asked Mike Brown, partner with Cape Fear Development (CFD), to speak on the process that led to the achieved savings. Mr. Brown stated that in attendance with him were representatives from LS3P, Monteith Construction, and Kimley-Horn. The two primary goals of the team when starting the analysis of Project Gace in September 2022 were community outreach and communication and a comprehensive review and analysis of the plans to ensure that what will be delivered is the highest quality and level of service at the most efficient cost possible. As mentioned during prior presentations, the team wanted to understand the perspective of local stakeholders and since the fall of 2022 has held over 20 formal presentations for large stakeholder groups along with countless smaller and more informal meetings and discussions with individual stakeholders, employers, and citizens. The feedback received has been very positive and there is a great deal of support for Project Grace. CFD had the benefit of being the second group to review the previous set of plans. The review revealed two realities. First, as the plans have evolved over several years there has been some scope creep as different items were added to the plans and into the budget. Second, bid fatigue is a risk to the project as the plans had been out to the market for pricing on several occasions and the project has been around for a while without getting started. The more fatigue there is, vendors and subcontractors naturally lose a level of motivation. When the plans are not completely clear, bidders hedge their risk by pricing in a larger margin of error in bid responses. To combat this reality, and so the County would get the best price, the CFD team knew it needed to understand the design, make sure the design was completely aligned with the program and intent of the County, and modify the plans to represent what was going to be built for bidders to price the plans competitively and aggressively. As far as the process, the CFD team analyzed the plans and created a master list of items the team had questions about with budgeted cost implications associated with each item. The first list comprised approximately 55 items. A meeting was then held with County management and library and museum staff to review the list. Based on that review, 27 areas of opportunity were identified off the list to eliminate unneeded costs from the project and make the plans clearer while at the same time, not comprising the program NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 AUGUST 7, 2023 REGULAR MEETING PAGE 840 quality or customer experience. The cumulative value of the efficiencies was an order of magnitude of several million dollars. The $60,524,860 estimated project budget which was incorporated into the initial development agreement back in May accounted for the savings. CFD at its own risk and cost updated the plans to incorporate the 27-B items into the plans with a goal to get a very clear set of construction plans for the market to price. The desire was not to have any ambiguity and allow contractors to be able to confidently bid on the plans and do so without having to price for risk or assumptions. On May 22, 2023, LS3P delivered a new clean bid set of drawings with all changes ndth incorporated, and between May 22 and June 29, the plans went out for bid. The bid process included extensive outreach through personal phone calls, online advertisements, and print publications. A pre-bid meeting with interested bidders was held with Jamalh Greene, Monteith Construction Supplier Diversity Director, who led a comprehensive effort to engage with and solicit participation from minority and women business enterprises (MWBE). The outreach efforts were tracked, and the total impressions were 121,128 across the various mediums that were used to get the word out. During the bid process, interested parties were encouraged to submit requests for information. The R5s were logged, and then additional direction and information was issued in response so all th participants had the benefit of the responses and CFD maintained the competitive environment. On June 29 121 total bids were received across the various trades and divisions, which is considered a very strong bid response. The bids were reviewed by CFD, County staff, and Mulford Cost Management who serves as the County's third party cost consultant on the project. The results of these bids efforts yielded an additional $3,965,000 in construction cost savings which is the actual construction component of the project budget. Considering the new set of plans in the bid pricing, additional adjustments were able to be made to the budget including the corresponding downward reduction in CFD’s project management fee, which when all added together accounted for the $4,582,000 reduction that is before the Board this evening. Mr. Brown concluded his comments by stating that he and his team are very pleased with the results of the process between value engineering, bid savings, and budget efficiencies. The total cost reduction from start to finish probably easily exceeded $7 million, according to the team’s estimates. Again, the team is extremely excited about this project and thinks it is the right project for the County. Commissioner Zapple thanked Mr. Brown and his team for the work they have put into the project to date. Chief Financial Officer Erice Credle continued the presentation as follows stating that as part of the st resolution, in addition to authorizing a public hearing to be held on August 21, staff is asking for the Board to approve the County issuing up to $57 million in debt to finance the project. As the $57 million is slightly higher than the guaranteed maximum price (GMP), it will allow for bond issuance cost and a small amount for contingency. Only the amount necessary will be borrowed. The impact of the debt issuance has been analyzed, as well as anticipated borrowings over the next four years to evaluate the County debt service requirements and ensure that the County stays within its debt capacity limits. Over the past two fiscal years, the County debt issuances have been fairly low, which has resulted in a net pay down of $50 million in debt over the two year period. Additionally, $44 million in principle is scheduled to be paid in fiscal year (FY) 2024. Thus, before considering any FY24 issuance, the County’s outstanding debt would be $94 million lower than on June 30, 2021. The following slide reflects the County's total principal and interest debt service payments going back to 2021:  Total Debt Service:  Projected Debt Outstanding at 6/30/24 = $454 million  Projected Debt Capacity Policy Limit at 6/30/24 = $531 million Consistent with the lower debt and as depicted by the black bars in the graph, the total payments have gone down from $64 million in FY21 to $58.7 million in FY23 and are scheduled to be $55.1 million in FY24. Looking into future years, the debt service payments associated with existing debt go down approximately $3 million per year for FY25 and FY26 and then decreasing by $5 to $6 million per year in both FY27 and FY28. The teal bars in the graph beginning with FY24 represent the estimated debt service associated with today's request. With a late fall issuance of the debt, the County would have one interest payment due in FY24 before combined principal and interest payments begin in FY25 of approximately $5 million per year. What has also been built into the analysis are the additional borrowings that are anticipated to fund other County projects in the coming years. The debt service for those borrowings is reflected in the yellow bars in the graph. For FY24, several large projects are scheduled including two fire stations, a new library, a board of elections building, and four park projects. In total, it is anticipated to have a spring FY24 debt issuance of approximately $64 million. In FY25 it is anticipated to have an issuance of approximately $36 million, with the largest item being most of the water and sewer initiative in the northern part of the County. In the years NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 AUGUST 7, 2023 REGULAR MEETING PAGE 841 beyond that, the anticipated borrowing needs lessen significantly. The dollar amounts in the boxes at the top of each bar are representative of anticipated all in debt service payments. As shown on the graph, the County's debt service increases from its current level, but generally stays within the range of recent history and by 2027 is back below the 2023 level. It is anticipated that natural growth in the County's tax base as well as generally increasing sales taxes will be able to fund the increases in FY25 and FY26. Also, with the anticipated debt issuances discussed today, the County’s peak outstanding amount is expected to occur on June 30, 2024 at a total of $454 million compared to an expected capacity limit per County policy of $531 million. Mr. Credle stated that in summary, he believes the County's finances are sufficient to support today's request. Mr. Credle stated in response to questions that the project can be done without a need for an increased tax rate. He thinks the revenue will come in and the tax base increases by approximately three to four percent per year for the County which would fund the increase seen in 2023 to 2024 and 2025 to 2026. He reiterated that there is no anticipation of increasing the tax rate. County Manager Coudriet stated that based on meetings that have been held with the LGC, there are specific items that need to be shared for the Board’s benefit that it, as a policy board, discussed and decided along the way since 2017. There is a desire to have a record that in fact the Board has addressed the items prior and affirmed, again, the position of proceeding as outlined. At no point with this debt issuance or anything to come, unless it becomes voter approved debt, will this administration ever ask for a tax increase as it is related to debt. The County is managed by the Finance Department and others too well that it can absorb these kinds of increases with the associated decreases on an annual basis. The following are items from the LGC staff that have been requested to be part of the County’s application:  LGC Discussion Items:  New Build vs. Renovation: analysis at the beginning of the process and more recently shows higher cost, structural issues, displacement of library County Manager Coudriet stated that when the County put out the solicitations for proposals at least five years ago, at least one of the requirements of the proposers was to consider adaptive reuse. It did not have to be the conclusion that the proposer reached, but they did have to study it closely. It happened then and again when the CFD team stepped into the development agreement. Twice developers have considered whether adaptive reuse is the right strategy for what the County wants to accomplish in the limitations or opportunities of the current library facility. Additionally, when the initial staff review was done by Benchmark, predating any of this, adaptive reuse was considered. Three different times staff has presented to the Board the idea of adaptive reuse, but it never economically made sense for the project that is imagined by the Board, which is that co-location and the real issue of not ever wanting to take the library offline, anywhere downtown and preferably, not on that block. For the record, staff wants to share that yes, the Board at three different times has considered adaptive reuse but has concluded based on a professional review that a new facility on the northern part of the block is correct. Unless the Board wants to say something other than that, staff is affirming that in fact has been the policy position made by the Board along the way and is the policy position still today, assuming the Board allows staff to submit the application. Commissioner Scalise stated that he wants to highlight the matter of potentially higher costs or what is likely believed to be higher costs, as well as the undeniable fact that there will be a displacement of the library under this analysis. There were some concerns about structural issues, as well. He thinks that it is important to make clear that this is something that is of paramount importance to all five of the Commissioners. Whatever facilities that are being created for the public, the Commissioners do not want there ever to be any question about things like structural issues and can ensure from the outset that this is going to be built in exactly the way that it needs to be to enhance and secure public safety. Always. County Manager Coudriet responded that there is an extensive record of that analysis and presentations by staff, but also two different development teams that speak to that. Everything from energy code to the relocation temporarily of a museum somewhere downtown. The order of magnitude of best estimate, as it is unknown what is unknown about inside that building, but conservatively, the team believes it would be at least $10 million more to do adaptive reuse on that site to accomplish what the Board is proposing versus the GMP that CFD has brought forward.  Consideration of Alternate Sites: would not achieve the goal of redeveloping the County’s downtown, centrally located block, and there would be an additional cost for land County Manager Coudriet stated there is certainly an economic advantage to the fact that the County owns an entire city block in downtown Wilmington. The vision of the Board was to co-locate these two important assets in the heart of downtown and create private development to help generate economic opportunity and revenues for the County, the City, potentially, and the room occupancy tax where those private investments are made, so that there would be incoming revenue. The Board did not explicitly say at any point, to find an alternative site. It has always been imagined that it would be on a block the County owns. For the record, he affirmed that staff has not mischaracterized or misrepresented what the Board's multiple decisions on this have been along the way of revitalizing a block the County currently owns and do not go into the purchase of an alternative site. Most recently, it was suggested that the County could co-locate its museum and library on the bottom floor of the building that the City of Wilmington just purchased from Thermo Fisher. Beyond serious construction limitations that deal with exhibits, museum stacks, etc. moving to that particular location would require the County to purchase property from NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 AUGUST 7, 2023 REGULAR MEETING PAGE 842 the City of Wilmington when the County already owns a block. It also would fall short of the Board’s vision to renovate or revitalize a downtown block and candidly, it is outside the scope of where this County pursued legislation to give it more options for redevelopment on the block. As the Board knows, the County is operating under a piece of legislation that was specific for that block. Over the course of time, other counties have kind of liked what the County decided to do, and that is now legislation all counties can benefit from, but the piece the County is using is specific to the block. County Manager Coudriet stated he wants to make sure that the record shows that building in this location is in fact what the policy commitment of the Board has been all along the way. He understands the Board is made up are different individuals, but the Board is perpetual. Its policy decisions from prior are the ones that are taking precedence until new decisions are made and at no point have staff ever been directed to consider an alternative site.  Consideration of an Upset Bid Process: limitations as part of upset bid process (timeliness and compatible uses) and legislation allows current structure County Manager Coudriet stated that the only legislation that allows conditions to be attached to the sale of property when the public body is involved is under economic development and downtown development. That is specifically what has been done here. The Board has expressed that it wanted certainty and predictability about what its neighbor would be because its neighbor has a great impact on the residents and businesses that are here. The only way the Board could guarantee a minimum investment and a particular type of investment on a timeline that is good for the community is to attach conditions under the economic development authorities that are allowed. There has been a suggestion that even if the County did not operate under those rules, it could still attach conditions. Staff has legal opinions from the prior county attorney, and now the current County Attorney Jordan Smith, who has a letter that would be submitted with the application that notes local governments are not allowed to put conditions on a conventional upset bid. In the upset bid, the idea is that one will get the highest bid value for what one is selling. But to attach conditions is not allowed in the state of North Carolina. Again, staff has two legal opinions from the Board’s attorneys and the opinion from the UNC School of Government. Staff also has a reference to the counsel for the LGC when this was before the LGC last September, where its attorney expressed their understanding of why the County would not pursue an upset bid, the angst of attaching conditions to something it otherwise cannot do. Unless the Board wanted to entertain an upset bid, the only way to proceed with certainty and predictability on what is invested, how much is invested, and on what timeline is to use these authorities that staff is proposing to operate under. Commissioner Scalise stated that one of the reasons he thinks it is so important for the County to stick with the path that has been set forth over the last number of years is because of just what County Manager Coudriet described. But he wants to put it in perhaps different terms so that people understand what could happen. Say that the County engaged in an upset bid, and it was able to eke out a few $1,000 more to another buyer, but they decided that they were just going to let the parcel sit there and do nothing with it. They maybe take the building down and then just leave an empty lot where nothing happens for 10 years, 20 years, or 30 years because they are waiting for some event to occur. The Board and County have by structuring the deal in this way ensured that there will be a minimum of $30 million that is invested into the southern portion parcel of the block. That is why to him this, and he knows to the rest of the folks that are up here, is so exciting because it really creates an opportunity for economic investment. It takes this thing off the County’s hands, puts it into private hands, private engagement, lots of millions of dollars are put into it, and then that goes onto the tax rolls. This is a way to ensure that that happens in a timely fashion. He thinks that it is so important that the Board pursue this path as it has set forth previously.  Utilization of Hospital Escrow Funds: the goal is to grow the corpus, and not use it in place of debt issuance where that is the more appropriate funding mechanism County Manager Coudriet stated that ultimately when the Board created the revenue stabilization fund, it was to grow the corpus so that the value of $300 million over the course of 30 years may be $330, $340, or $350 million. It was never imagined to take the corpus into one-off capital projects. It was imagined going to the corpus if there was something that created a shock to the County’s system such as the tax base collapsing, sales tax collapsing, or a significant hurricane. With Hurricane Florence, the County put out over $30 million of County cash during that immediate response, and it took two years to be reimbursed. The Board took the fund balance down well below the policy. The corpus provides the opportunity for the Board if there is another event such as that, rather than using fund balance, the County has the revenue stabilization fund. The asset purchase agreement did not consider using the corpus for these kinds of projects to issue/use cash as opposed to debt except in urgent crises in this community. This is an economic opportunity, the County has the debt capacity, the County is every year below three years ago of an external debt service at $64 million, and after debt issues, the County is at $63 million with one-time debt service payments as in the year. This is something economically the County is capable to do, and the County will also preserve the escrow for revenue stabilization. The Board has used interest proceeds, and when those interest proceeds are used, that is not being reinvested in the corpus to grow, but it is still an opportunity for the Board. He is trying to affirm so that the application can be reflective that these are the policy positions that have been expressed by the Board along the way and remain the position of the Board today, and that proceeding with the project where it is, under a conventional debt model is in fact the Board’s policy expectation. Staff is not looking for the Board to vote on that or affirm it. Staff just wants the record to show that they have reflected on what they have heard along the way. If he is wrong and the Board directs otherwise, he and staff will absolutely move in a different direction. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 AUGUST 7, 2023 REGULAR MEETING PAGE 843 Commissioner Scalise stated that it is important to recognize that the members of the LGC and the LGC staff serve a really important function in North Carolina. They are out there making sure that counties that perhaps do not have the resources like this County are not taking on more debt than they are able to service. It is an important function of that commission. He is glad that they are there to do it, and thanks them for the recommendations that they have made to the County and the Board, and that they have been considered. He further stated that he is grateful to County Manager Coudriet for taking the time to go through some of those items that have come up over the years. County Manager Coudriet stated that he is thankful as a manager in the state of North Carolina that there is an LGC. There has not been a unit of local government to declare bankruptcy since the LGC was established in the 1930s. That is not by happenstance or law, it is because of the role of the LGC and the stress tests they put on local governments as it relates to their finances, revenues, and expenditures. He is very thankful that there is such a commission in the state. He then provided the following overview of the timeline and proposed next steps:  Timeline and Proposed Next Steps:  August 7, 2023: Consideration of amended Development Agreement with revised guaranteed maximum price, initial resolution authorizing the county to file LGC application and conduct a local public hearing  August 8, 2023: File LGC Application  August 21, 2023: Public Hearing held by Board of Commissioners  September/October 2023: Present/Approval of debt issuance at LGC Meeting  November 2023: Construction begins County Manager Coudriet stated that if the Board approves the matter today, the application will be submitted on August 8, 2023, with a specific ask to be calendared for the September 12, 2023 LGC meeting. He does not know if the County will be placed on that calendar and if the matter is not heard on this date, the next opportunity would be October 3, 2023. If the matter is not heard on October 3, 2023, it could not be considered until the first quarter of the next calendar year, and there are some technical reasons that deal with the last available audit. He concluded the presentation by stating that he wants to echo Mr. Brown’s comments that this is an outstanding project, and it gets better every day. The County has an outstanding staff and is working with a talented team. If the Board directs staff and the LGC approves, all promise the Board and the community that this project will be the most significant and transformative public investment the County has been a party to, perhaps ever. County Manager Coudriet stated that today’s presentation will be included in the application and reference will be made to the fact that it was part of the public presentation in Board discourse. Commissioner Barfield stated that for him the County is delivering on the promise that was made to the citizens in 2011 when the quarter cent sales tax was passed. The conversation at that time was about quality of life initiatives, the parks, the gardens, and the museum. That quarter cent sales tax is currently bringing in roughly $14 million a year into the general fund. The County has delivered in building the new Pine Valley Library and delivered enhancements to its parks. He was stopped while walking in Long Leaf Park yesterday by a gentleman who thanked him for all the great things the County is doing in its parks. When the quarter cent sales tax was passed, people very clearly wanted to protect things such as parks and libraries. Back then the County reduced library hours to make the County budget work. Again, he thinks the County is delivering on the promise made to the citizens here without a tax increase to do these things. The County looked at a new build versus renovation in the past for the 320 Chestnut Street building. The building was analyzed, and the decision was made that it was best to renovate it and maintain its historic significance and it did have significance there. He thinks it cost approximately $10 million to refurbish the building to make it work for the County. When the County acquired the old Southeastern Mental Health building for the Health Department, it renovated the building, but there were two separate sites, and it created some challenges for employees. When the County had the ability to sell the old building to the hospital, it made sense to build a new building to house Health and Human Services in one building to create greater synergy there. He thinks that throughout time, the Board and staff have really been thoughtful to ensure that the County is protecting the taxpayers’ investment but also delivering the best possible outcome for the community. He is excited to be moving forward with this matter. It will be only the second purpose built library in the County. The Northeast library is in a former grocery store and the downtown library is in a former department store. The former Myrtle Grove library was built as a library but in looking at it now in comparison to the Pine Valley library, he could not imagine being back in the Myrtle Grove location with what is happening in the Pine Valley location. To have something that is purpose built, like the government center, will serve the needs of downtown Wilmington for years to come and create great synergy between the museum and the library. He thinks it will become a destination and a win-win for locals and tourists. Also, to have a development team come together that are all local Wilmingtonians like himself is good to have their involvement and commitment to this project. Hearing no further discussion, Chair Rivenbark asked for direction from the Board. Motion: Commissioner Zapple MOVED, SECONDED by Commissioner Barfield to approve the amendment to the development agreement between Cape Fear Development Partners, LLC, and New Hanover County for the redevelopment of the Wilmington city block bounded by Chestnut Street, Grace Street, and North Third Street, decreasing the guaranteed maximum price to $55,942,679. Upon vote, the MOTION CARRIED UNANIMOUSLY. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 AUGUST 7, 2023 REGULAR MEETING PAGE 844 Motion: Commissioner Zapple MOVED, SECONDED by Chair Rivenbark to adopt the resolution, which among other things directs staff to submit an application for debt issuance to the Local Government Commission and provide notice to conduct a public hearing at the next Board of Commissioners meeting on August 21, 2023, for the debt issuance. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the resolution is hereby incorporated as part of the minutes and contained in Exhibit Book XLIX, Page 14.4. APPROVAL OF THE NEW HANOVER COUNTY PLAN FOR TRANSPORTATION AGREEMENT OF NEW HANOVER COUNTY INVOLUNTARY COMMITMENTS (IVC) RESPONDENTS AS REQUIRED BY NORTH CAROLINA GENERAL STATUTE (NCGS) 122C-251 AND ADOPTION OF A RESOLUTION ADOPTING A PLAN SUPPORTING IVC TRANSPORT SERVICES Deputy County Attorney Karen Richards stated that the NCGS 122C-251 requires every county to have a transportation policy for its citizens involved in involuntary commitment proceedings (IVCs). The request is to update the 2019 policy due to Novant acquiring New Hanover Regional Medical Center (NHRMC). The proposed revised plan is updated to designate Novant as owner/successor to NHRMC and to expressly authorize Novant to utilize Allied Universal Security Services a third-party transportation agency mutually acceptable to Novant and the County. Based on feedback received during the August 3, 2023 agenda review, the agreement has been updated to reflect a provision to include that “...to the extent feasible each respondent will be transported with the dignity and respect allowed on a case by case basis…” If approved, the updated plan will allow for patients to be sent for the appropriate treatment quicker, for beds to be more readily available, and allow law enforcement, which is the current agency required to manage the transport, to remain in County to manage local situations, as necessary. Commissioner Barfield expressed appreciation for addressing how IVC respondents are treated during transport. Hearing no further discussion, Chair Rivenbark asked for direction from the Board. Motion: Commissioner Scalise MOVED, SECONDED by Vice-Chair Pierce to adopt the resolution adopting a plan supporting involuntary commitment transport services. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the resolution is hereby incorporated as part of the minutes and contained in Exhibit Book XLIX, Page 14.5. PUBLIC HEARING AND APPROVAL OF A REZONING REQUEST (Z23-12) BY WILLIAM BLOCK WITH OLYMPUS HOLDING COMPANY CASTLE HAYNE, LLC, APPLICANT, ON BEHALF OF PATRICIA ROSEMAN WITH BLUE TANK, LLC AND HOLLY TANK, LLC, PROPERTY OWNERS, TO REZONE APPROXIMATELY 23.01 ACRES ZONED I-1, LIGHT INDUSTRIAL AND APPROXIMATELY 49.38 ACRES ZONED I-1 AND R-15, RESIDENTIAL LOCATED AT 5210 HOLLY SHELTER ROAD AND 5735 BLUE CLAY ROAD TO (CZD) RMF-L, RESIDENTIAL MULTI-FAMILY – LOW DENSITY FOR A MAXIMUM OF 521 RESIDENTIAL UNITS CONSISTING OF MULTI-FAMILY, ATTACHED, AND DETACHED RESIDENTIAL DWELLING UNITS Development Review Supervisor Robert Farrell presented the request stating the subject site is located at the corner of Holly Shelter and Blue Clay Road in an area initially zoned a mix of R-15, Residential and I-2, Heavy Industrial in the 1970s. In 2000, most of the subject site was rezoned to I-1 and has remained undeveloped. The neighboring areas include industrial development to the north, single-family homes to the east and south, and a Federal Aviation Administration (FAA) air navigational tower to the west. The subject site is adjacent to two North Carolina Department of Transportation (NCDOT) maintained roads, both of which are under capacity. The proposed project plans to create a total of 521 dwelling units developed over four phases. Phase one is a 278-unit apartment complex on the northern portion of the site. Phases 2 - 4 will be for the remaining 243 units, consisting of various single-family housing types. The plan includes amenities and open spaces along with stormwater infrastructure. The multi-family section will have full access at both Holly Shelter and Blue Clay Roads. The attached housing area to the south will have two full access points onto Blue Clay Road. Although there is no vehicular access between the two housing types, a condition of approval is included to ensure bike and pedestrian interconnectivity. The anticipated trip generation is expected to be about 170 AM and 73 PM peak hour trips less than the current zoning allows. The overall estimated traffic meets the County’s threshold of 100 trips peak hour trips, thereby requiring a traffic impact analysis (TIA). Traffic counts were taken in 2022 with a two percent anticipated background growth rate. In January 2023, the TIA was approved by the WMPO and NCDOT with an anticipated full project build out of 2026. Required improvements include installing a signal at the I-40 eastbound ramp and Holly Shelter Road intersection, an option to install a signal at the I-40 westbound ramp or to construct a northbound right turn lane, and construction of right-turn lanes at Holly Shelter and Blue Clay Roads, as well as a right turn lane at the Holly Shelter site access. The project is estimated to create 115 additional students based on the current general student generation rate under current zoning. The generation rate is updated annually using actual student numbers provided by the school system. Of note, most new residential units in the County are not typically occupied by large numbers of school-aged children. Also, Holly Shelter Road currently functions as an industrial corridor serving existing and future non-residential development including the County’s future business park. The project could provide housing to support the commercial and industrial development in the area, but development will be dependent on the County’s additional water and sewer investment intended to serve the industrial area. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 AUGUST 7, 2023 REGULAR MEETING PAGE 845 The 2016 Comprehensive Land Use Plan (Comprehensive Plan) designates the property in the General Residential place type which provides opportunities for low to moderate density housing. The proposal has an overall density of 7.19 dwelling units per acre. The maximum allowed density in the RMF-L district is 10 dwelling units per acre. The project also proposes a variety of housing in an area between the Employment Center and Commerce Zone place types. The Planning Board considered this item at its July 6, 2023 meeting and recommended approval (5 – 0) with three conditions, finding the request consistent with the Comprehensive Plan and reasonable and in the public interest. Mr. Farrell stated that based on the policy guidance of the Comprehensive Plan, zoning considerations, technical review, and the recommended uses and residential densities of the Community Mixed Use place type, staff concurs with the Planning Board’s recommendation, with the following conditions: 1. The applicant is to provide bicycle and pedestrian connectivity between the multi-family phase development and the single-family phased development. 2. No structure on the parcel shall exceed 45-feet in height and a maximum of three (3) stories. 3. A declaration statement shall be recorded in the property's chain of title, at the New Hanover County Registry, stating the property is in proximity to existing and future commercial and industrial activities that may result in noise, vibration, and heavy vehicle traffic on area roadways, which activities may occur any time during the day or night. Such declaration shall also be provided with all future leases. Mr. Farrell concluded the presentation by stating that staff has not received any additional comments regarding the application. Should the application be approved, development of the site will be subject to additional development review to ensure all land use regulations are met. Chair Rivenbark thanked Mr. Farrell for the presentation and invited the applicant to make remarks. Allison Engebretson with Paramounte Engineering and applicant representative for William Block of Olympus Holding Company Castle Hayne, LLC, applicant, stated the proposed project will be named The Oasis. Her understanding of the purpose in the split zoning was to keep the buffer to the adjacent residences across Blue Clay Road. The proposed project would provide for a transitional residential neighborhood by putting homes close to goods and services as well as potential workplaces as the general site area is in the industrial and business corridor. Water and sewer services will be installed along Holly Shelter Road and the County’s business park will be in the area, which is also suited for expansive growth in the coming years and is one of the last major undeveloped corridors in the County. It is believed the subject site was not envisioned for residential or industrial of any magnitude when the Comprehensive Plan was done. However, there are Employment Centers, Community Mixed Use, and Commerce Zones that surround the site. In her overview of the site plan, she noted how the mixture of townhomes and multi- family units will be placed on the property. Due to the site’s location being in an industrial corridor, extensive buffering has been planned for residents of the development to be well protected from the area as well as the industrial areas not having a direct view into the site. Between the ponds, landscape areas, and buffers, approximately 42% of the site will not be constructed and will be left as open space. She also provided an overview of goods and services available in the area, nearby schools, and how the proximity to I-40 will allow people access to different areas in the County and surroundings counties. She concluded the presentation by stating that the subject site is a good location for a mixed housing project and will help address the County’s housing gap. Ms. Engebretson responded to questions stating that it has not been fully decided whether the project will be a rental community and that the apartments would be closest to the S&W Ready Mix Concrete Company. The project is seen as providing the potential option for employees to live closer to their jobs and work in harmony with the area. She understands the concerns expressed by Martin-Marietta and Titan Cement/S&W representatives which is why the third condition for approval is to include a declaration statement recorded in the property’s chain of title. Buyers or lessees will have to sign a document acknowledging awareness of the nearby industrial activity. Ms. Richards responded to questions stating that federal regulations are in place to monitor air quality. County Manager Coudriet responded to questions stating that the water and sewer service that is being installed will pass in front of the proposed project to the County’s business park. There will be a reimbursement agreement with Cape Fear Public Utility Authority (CFPUA) to reimburse the County. He cautioned against having an assumption that the industries near the subject site are in violation of their air quality permits. Discussion ensued about developers being required to provide notice to potential buyers of what might affect the property, how realtors should make their clients aware of the potential noise levels due to a road or business, and how that does not always occur. Commissioner Barfield commented on how a goal of the County is to grow the subject corridor with not only business units but residential units. He also remarked on how he shares with his clients the possible issues that may be experienced if they purchase a particular property for their awareness while searching for a home. Commissioner Scalise remarked on how anyone can be sued for anything, but it does not mean there is always a valid reason for the suit. He stated that he is in favor of the request as he feels the location will provide for a wide array of needed housing options. The consequence of living in a highly sought after area is that residents deal with noise and traffic daily. Commissioner Zapple stated his desire to add to the third condition a statement about the air quality due to the activities of nearby industries. Mr. Farrell responded to questions confirming that disclosure of the potential impacts from nearby existing and future commercial and industrial development shall be provided with all future leases. He further reconfirmed NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 AUGUST 7, 2023 REGULAR MEETING PAGE 846 that the declaration statement will be recorded in the property’s chain of title. Residential is not allowed in an I-1 zoning district, and if the request is approved, the rezoning of the site would allow residential. Planning and Land Use Director Rebekah Roth added that Wilmington Business Development (WBD) did not state a concern about potentially losing the industrial zoning for the subject area. Chair Rivenbark announced that no one signed up to speak in favor or in opposition, closed the public hearing, and opened the floor to Board discussion. Vice-Chair Pierce stated as to the discussion about the businesses surrounding the subject site that she would caution against assuming there are issues. She believes the surrounding businesses are complying and is certain the appropriate regulatory authorities will address any issues that arise. She believes the proposed project provides much needed housing in the subject area and is in favor of the request. Hearing no further discussion, Chair Rivenbark asked Ms. Engebretson if, based on the Board discussion and items presented during the public hearing, whether she would like to withdraw the petition or proceed with the vote. Ms. Engebretson responded that she wanted to proceed with the vote. Chair Rivenbark asked for direction from the Board. Motion: Commissioner Scalise MOVED, SECONDED by Vice-Chair Pierce to approve the proposed rezoning to an RMF-L district. The Board finds it to be consistent with the 2016 Comprehensive Plan because the project provides for the density and range of housing options recommended in the General Residential place type. The project could also serve as a transition between adjacent industrial zoning and adjacent low-density, single-family residential uses. The Board also finds approval of the project is reasonable and in the public interest because the proposal could accommodate residential uses that could support the nearby Employment Center and Commerce Zone place types, with the following conditions: 1. The applicant is to provide bicycle and pedestrian connectivity between the multi-family phase development and the single-family phased development. 2. No structure on the parcel shall exceed 45-feet in height and a maximum of three (3) stories. 3. A declaration statement shall be recorded in the property's chain of title, at the New Hanover County Registry, stating the property is in proximity to existing and future commercial and industrial activities that may result in noise, vibration, and heavy vehicle traffic on area roadways, which activities may occur any time during the day or night. Such declaration shall also be provided with all future leases. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of AN ORDINANCE OF THE COUNTY OF NEW HANOVER AMENDING THE ZONING MAP OF AREA 8A 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 8A, Page 46. PUBLIC HEARING AND APPROVAL OF A REZONING REQUEST (Z23-13) BY CINDEE WOLF WITH DESIGN SOLUTIONS, LLC, APPLICANT, TO REZONE FOUR PARCELS TOTALING APPROXIMATELY 0.92 ACRES OF LAND LOCATED AT 4801, 4805, 4809, AND 4813 SHELLEY DRIVE FROM R-15, RESIDENTIAL TO (CZD) R-5, RESIDENTIAL FOR A MAXIMUM OF 7 SINGLE-FAMILY RESIDENTIAL LOTS Senior Planner Zach Dickerson presented the request stating that the subject site is located at the intersection of Shelley Drive and North College Road and is currently wooded. The Kings Grant subdivision to the north and east of the site was zoned R-15 in 1972 and is primarily residential. To the south is a convenience store, among several other parcels, zoned B-2 while to the west is more residential, zoned R-10. The applicant’s proposed plan includes seven single-family homes on seven lots with lots 1-6 just under 6,000 square feet and lot seven at about 6,400 square feet. The plan also shows 18,000 square feet of open space behind the lots, where the stormwater management system will be located. Access to the lots will be on Shelley Drive with a proposed condition for shared driveway cuts across the lots. Two projects with TIAs, Estrella Landing and Azalea Landing, are currently being developed and are in the vicinity of the proposed project. NCDOT plans to make improvements to North College Road over the next several years, including elevating the road above the subject area between New Centre Drive and Gordon Road. The planned improvements will impact the intersection of Shelley Drive and North College Road, which may change how the parcels are accessed. NCDOT has stated that access to the parcels can be accommodated during the design process. While this project would serve as a transition from higher intensity uses and traffic, the NCDOT project will impact these transitions and place the highway in closer proximity to existing residential uses. The concept plan does reflect that the common space is positioned for potential future right of way acquisition. The proposed project would generate approximately two more AM and three more PM peak hour trips than under its current designation and as such, does not trigger the requirement for a TIA. It would also generate approximately one more student than under its current zoning designation. The Comprehensive Plan classifies the area as General Residential. This project is generally consistent with the Comprehensive Plan’s recommendations for the General Residential place type. The Planning Board considered this item at its July 6, 2023 meeting and recommended approval (5-0) with the following conditions to address accessory dwelling units, right of way acquisition by NCDOT, open space, and driveway cuts: 1. No accessory dwelling units will be permitted on these lots. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 AUGUST 7, 2023 REGULAR MEETING PAGE 847 2. Area for possible right-of-way acquisition by NCDOT for future highway project will be set aside in common area. 3. All trees will remain in open area except those removed for stormwater. 4. There will be no more than four driveway cuts across the seven lots. Mr. Dickerson concluded the presentation by stating that if approved, all development on-site would be subject to Technical Review Committee and zoning compliance review processes to ensure full compliance with all ordinance requirements. Discussion ensued about condition #2 and how it coincides with the NC Map Act (Act). Ms. Roth responded to questions stating that the Planning Board recommended the condition as the applicant voluntarily agreed to it. She believes that Act would not prevent the County to do more than what NCDOT can legally do for by-right projects in a conditional rezoning if so desired by the Board and voluntarily agreed to by the applicant. S hould a project proceed under the existing zoning, and if NCDOT later deemed part of a lot unbuildable, NCDOT would bear the financial responsibility. County Attorney Smith stated the Act was a general statute that allowed NCDOT where it anticipated future roads to put down a map in the County and prevented property owners from seeking rezonings or obtaining building permits to amend their properties or structures. The Act was ruled unconstitutional by the NC Supreme Court, as it was considered an uncompensated taking. In some instances, properties were undevelopable and could not be enhanced or rezoned for several years, and the property owners needed to be compensated. He generally agrees that the condition being discussed is one that all seem to agree with, and the required common area has been placed towards North College Road for purposes of future acquisition by NCDOT. Ms. Roth confirmed his understanding was correct and is being done not to impact an individual lot and that the statement was included in the application which is why it was included as a condition. Chair Rivenbark thanked Mr. Dickerson for the presentation and invited the applicant to make remarks. Cindee Wolf of Design Solutions, applicant, stated that the four existing lots could qualify for building permits due to recent changes over the past year, including updated codes allowing accessory dwelling units. Unlike much of Kings Grant, the lots are directly across from the B-2 district and commercial uses. She learned during her research that the first lot might be affected by potential NCDOT changes to North College Road, which she felt needed to be accounted for in the process. As a result, the common area is set aside to serve for future right-of-way acquisition. While not waiving future acquisition rights, she and her client have planned to set aside 20-25 feet for potential future acquisition by NCDOT. If road changes happen, the first three lots can easily adapt. The proposal aims to turn the four lots into seven, excluding accessory dwellings, to offer more affordable housing options. Given the seven units, only three might share driveways, subject to the detailed design process, which might be influenced by infrastructure like power poles or fire hydrants. She believes shared driveways would reduce driveway-road conflict points and be more cost effective. Each proposed lots exceeds the R-5 minimum size of 5,000 square feet. The common area at the rear will offer separation from existing homes in Kings Grant, ensuring a good backyard for the new lots. There are no plans to clear more than needed for stormwater management. The maximum impervious surface per lot would be 2,100 square feet, falling under low-density stormwater management, which eliminates the need for a pond per state regulations. However, she and her client will adhere to the County's stormwater retention standards. Ms. Wolf concluded that the proposed project is consistent, provides an orderly and acceptable transition, and that it would be a benefit to have that slightly increased density. Ms. Wolf responded to questions stating that by state regulations, no more than 25% impervious surface is considered low density and does not require a retention pond. The stormwater retention can be managed in swales and barriers, depending on the sandiness of the soil, via French drains and other low impact stormwater measures that would prevent the need for a pond. As to where the driveway comes in for lots one through three, that portion of Shelley Drive would not be dug up. NCDOT would dig up the intersection to North College Road and then the driveways would be rerouted to the curve. She explained how the service road would operate and how the driveway would come in perpendicular to the curve created by the NCDOT project. She confirmed that she is positive this project will happen and is not affected by the NCDOT project now or in the future. Chair Rivenbark announced that no one signed up to speak in favor or in opposition to the request, closed the public hearing, and opened the floor to Board discussion. Hearing no further discussion, Chair Rivenbark asked Ms. Wolf if, based on the Board discussion and items presented during the public hearing, whether she would like to withdraw the petition or proceed with the vote. Ms. Wolf responded that she wanted to proceed with the vote. Chair Rivenbark asked for direction from the Board. Motion: Commissioner Scalise MOVED, SECONDED by Vice-Chair Pierce to approve the proposed rezoning. The Board finds it to be consistent with the purposes and intent of the Comprehensive Plan because it provides for the types of uses and recommended density for the General Residential place type. The Board also finds approval of the rezoning request is reasonable and in the public interest because the project will provide housing near other residential uses, transitioning from a high traffic corridor into a lower-density neighborhood. The following proposed conditions are included as part of the approval: 1. No accessory dwelling units will be permitted on these lots. 2. Area for possible right-of-way acquisition by NCDOT for future highway project will be set aside in common area. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 AUGUST 7, 2023 REGULAR MEETING PAGE 848 3. All trees will remain in open area except those removed for stormwater. 4. There will be no more than four driveway cuts across the seven lots. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of AN ORDINANCE OF THE COUNTY OF NEW HANOVER AMENDING THE ZONING MAP OF AREA 9A 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 64. QUASI-JUDICIAL PUBLIC HEARING AND APPROVAL OF A SPECIAL USE PERMIT REQUEST (S23-03) BY CHRIS BAKER, APPLICANT, ON BEHALF OF THE SANCTUARY CHURCH OF WILMINGTON, PROPERTY OWNER, FOR THE USE OF CHILDCARE CENTER AT THE APPROXIMATELY 7.47-ACRE PARCEL LOCATED AT 6687 CAROLINA BEACH ROAD, ZONED R-15, RESIDENTIAL Chair Rivenbark opened the public hearing and announced that the special use permit (SUP) process requires a quasi-judicial hearing. Before the hearing is opened, the deputy county attorney will provide an overview of the hearing procedures. Deputy County Attorney Karen Richards stated that the request is for an SUP which is a quasi-judicial hearing and if called for a quasi-judicial hearing, the Board must find four elements as findings of fact, and they must be clearly stated on the record. Those four findings of fact must include that the use will not materially endanger public health or safety, the use meets all required conditions and specifications of the UDO, the use will not substantially injure the value of adjoining or abutting property, and the use will be in harmony with the area in which it located and in general conformity with the Comprehensive Plan for New Hanover County. If the Board of Commissioners determines that any elements cannot be made on the evidence, that alone may be the basis for denial. The Board of Commissioners only needs to find that the evidence does not support one element, not all four, to deny the application. There have been plenty of court decisions that say what is relevant and competent evidence. That would be testimony from experts and testimony from people who have standing. The Board can make those inquiries when the speakers come to testify as they have been sworn in, it is not necessarily based on opinion. If that is a neighbor of the property and the Board finds they have standing, they would be the one that knows their property, not that they would be an expert. As such, that opinion could qualify but not the neighbors down the street, for example. Once the Board finds the people do have standing, those persons may cross examine others or object to testimony. While that does not usually happen in this forum, the Board must be aware of that ability. The Board may ask staff and applicants questions and can also table the matter for additional evidence or experts that either party might need. Chair Rivenbark stated that because the SUP process requires a quasi-judicial hearing, anyone wishing to testify must be sworn in. All persons who signed in to speak and wish to present competent and material testimony must be sworn in by the clerk to the board. He requested all persons who signed up to speak or who want to present testimony to step forward to be sworn in. Ken Vafier Galen Jamison Frank Meyer Robert Farrell Chris Baker Bert Billings Rebekah Roth Hannah Baker Jamar Johnson Sunnie Batson Chair Rivenbark further stated that a presentation will be heard from staff, then the applicant group and the opponent’s group will each be allowed fifteen minutes for presentations and an additional five minutes, if necessary, for rebuttal. He asked Planning Manager Ken Vafier to start the presentation. Mr. Vafier presented the SUP request stating it is for a childcare center to be located within an existing facility, Sanctuary Church of Wilmington. As an SUP, conditions may be applied to the request to ensure compliance with a required conclusion. The site is located on 7.47 acres at 6687 Carolina Beach Road in the southern portion of the County. It is currently zoned R-15, which is representative of much of the property in the immediate vicinity which was applied in the early 1970s. Childcare centers are permitted by-right in most commercial districts but do require approval of a SUP in residential districts such as R-15 to ensure it is appropriately evaluated for the specific site and surrounding uses. The proposed childcare center will serve up to 60 children aged 0-12 years old. No changes are proposed to the site or building exterior, although interior upgrades will be necessary to meet building and fire code requirements specific to childcare centers. The proposed hours of operation will be from 7:00 AM – 6:00 PM, Monday through Friday. Mr. Vafier provided an overview of the existing layout with the associated parking area and open spaces and various views of the site. The development has an existing right in/right out driveway access to Carolina Beach Road. For motorists who will need to access the site or will be leaving the site via southbound Carolina Beach Road, there are U-turn configurations located approximately 1,000-feet north of the entrance, and 1,150-feet south of the entrance. There are two recent TIAs and one subdivision in the vicinity. The proposed development would increase traffic by approximately 41 AM and 37 PM peak hour trips. This is below the 100 peak hour threshold to require a TIA. At this time NCDOT has advised that no permit will be needed for the proposed childcare facility, if the facility expands in the future, possible roadway improvements could be required. The site is located within the boundary of areas NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 AUGUST 7, 2023 REGULAR MEETING PAGE 849 classified as Community Mixed Use and General Residential place types in the Comprehensive Plan. Types of uses encouraged include residential, recreational, institutional, and commercial uses so the proposed use is consistent with either place type. The staff has created preliminary findings of fact for each of the four conclusions required to be reached to approve a SUP. These preliminary findings and conclusions are based solely on the information provided to date, prior to any information or testimony in support of or opposition to the request: 1. The use will not materially endanger the public health or safety where proposed and developed according to the plan as submitted and approved. Conclusion: the preliminary staff findings generally address utilities, fire protection, access and trip generation, environmental features, and state licensure requirements. 2. The use meets all required conditions and specifications of the Unified Development Ordinance. Conclusion: the findings address compliance with various ordinance requirements including dimensional standards and parking. 3. The use will not substantially injure the value of adjoining or abutting property or that the use is a public necessity. Conclusion: the findings address existing site conditions and land uses in the vicinity. 4. The location and character of the use if developed according to the plan as submitted and approved will be in harmony with the area in which it is to be located and in general conformity with the Comprehensive Land Use Plan for New Hanover County. Conclusion: addresses compatibility with the surrounding area and compatibility with the Comprehensive Plan. Mr. Vafier concluded the staff presentation by stating that if approved, all development on-site would be subject to zoning compliance review processes, in addition to building safety, fire code, and state licensure requirements to ensure full compliance with all requirements. Chair Rivenbark thanked Mr. Vafier for the presentation and invited the applicant to make remarks. Chris Baker with Rising Stars of North Carolina, LLC, applicant, on behalf of the Sanctuary Church of Wilmington, property owner, stated that through this interaction he and his wife have gotten a glimpse inside what all goes into making this County so great and thanked the Board for it. Hannah Baker stated that the goal is to provide affordable high quality childcare to families in the County. Operation hours will be 7:00 a.m. to 6:00 p.m. Those hours would fit into most working families’ range. The facility’s license is for children from birth to 12 years of age, which will be through elementary school. Costs will be less than $140 a week. Meetings have been held with Jennifer Dempsey, NC Department of HHS Lead Child Care Consultant for New Hanover County. Ms. Dempsey has worked with them to do pre-inspections and provided guidance on how to open a childcare center and what steps need to be taken. Mr. Baker responded to questions stating that in addition to paid positions, the hope is to have a strong volunteer base to help with the children which will keep the cost at $140 per week. He and his wife fully understand the issues around the lack of childcare facilities as they have experienced similar issues to what the Board has heard from citizens. Ms. Baker responded to additional questions that upon opening, the facility will be allowed to accept up to 60 children and will accept childcare vouchers. Chair Rivenbark announced that no one signed up to speak in favor or in opposition to the request, closed the public hearing, and opened the floor to Board discussion. Vice-Chair Pierce stated that childcare facilities are much needed in the community. She has employees who cannot come to work because they cannot find daycare for their small children. She is happy to see this facility open in the southern area of the County and is in favor the proposal. Hearing no further discussion, Chair Rivenbark asked for the Board’s direction on the request. Motion: Commissioner Barfield MOVED, SECONDED by Commissioner Zapple to approve the application as the Board finds that this application for a Special Use Permit meets the four required conclusions based on the findings of fact included in the Staff Report. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of an order granting a Special Use Permit and listing the findings of facts is contained in SUP Book IV, Page 96. PUBLIC COMMENTS ON NON-AGENDA ITEMS Chair Rivenbark stated that no one signed up to speak under public comment. ADDITIONAL AGENDA ITEMS OF BUSINESS Commissioner Barfield reported on attending the Purple Heart Dinner along with Vice-Chair Pierce, and Commissioner Zapple. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 AUGUST 7, 2023 REGULAR MEETING PAGE 850 th Commissioner Zapple reported on attending the Access of Wilmington, Inc. 10 anniversary event of the Mirale Field along with Commissioner Barfield. Commissioner Scalise reported on attending the Dark Horse Studio groundbreaking along with Chair Rivenbark. Chair Rivenbark stated that he is proud of the County staff and expressed appreciation to County Manager Coudriet and Chief Human Resources Officer Mark Francolini for ensuring the best and the brightest are hired. ADJOURNMENT There being no further business, Chair Rivenbark adjourned the meeting at 6:10 p.m. Respectfully submitted, Kymberleigh G. Crowell Clerk to the Board Please note that the above minutes are not a verbatim record of the New Hanover County Board of Commissioners meeting. The entire proceedings are available online at www.nhcgov.com.