AGENDA #4h

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:      Proposal to Call Public Hearings to Consider Extending the Downtown Service District Boundaries and Reducing the Downtown Service District Boundaries

 

DATE:            April 24, 2006

 

 

This memorandum proposes calling hearings for May 22, 2006, to consider amendment of the Downtown Service District boundaries, last amended in 2003. 

 

BACKGROUND

 

Downtown Service District boundaries have remained unchanged since 2003.  In the past, the Downtown Service District boundaries were designed to include properties that were predominantly commercial and to exclude properties that were predominantly residential. 

 

DISCUSSION

 

  1. Extension of Downtown Service District.

 

We believe that properties, which face primary business streets in the downtown, are appropriate for inclusion within the service district and for receipt of the services provided by the District tax, with the exception of properties designed for single family housing. 

 

Establishing this principle would result in addition of mixed use developments and residential multi-unit developments. 

 

We also recommend that the Council consider altering the District boundaries to add to the District all of the single lots that are now only partially included within the District, where the property is used for a single purpose.  For example, the District currently includes parcels with buildings and parking within a single lot, but only portions of these parcels are included in the Downtown Service District.

 

We believe that the properties proposed for inclusion within the extended service district boundaries meet the standards of N.C.G.S. Sec. 160A-538 (a) which provides:

 


§ 160A‑538.  Extension of service districts.

 

(a)       Standards. – The city council may by resolution annex territory to any service district upon finding that:

(1)       The area to be annexed is contiguous to the district, with at least one eighth of the area’s aggregate external boundary coincident with the existing boundary of the district;

(2)       That the area to be annexed requires the services of the district.

 

Pursuant to N.C.G.S. Section 160A-538, a report shall be available for public inspection in the office of the Town Clerk two weeks before the date of the public hearing.  The report will contain:

 

(1)       A map of the service district and the adjacent territory, showing the present and proposed boundaries of the district;

(2)       A statement showing that the area to be annexed meets the standards and requirements of subsections (a) or (b); and

(3)       A plan for extending services to the area to be annexed.

 

We have attached a listing of properties that are currently excluded from the Downtown Service District, which we are recommending for inclusion in the amended District.  See Attachment 1.

 

2.  Reduction of Downtown Service District.

 

We also recommend reducing the boundaries of the Downtown Service District to exclude University of North Carolina property that was previously zoned TC-1, but now zoned OI-4.  The property is located on the south side of East Franklin Street, just west of the University Methodist Church.

 

Pursuant to the provisions of N.C.G.S. 160A-538.1, we believe the Council can make the determination that this property no longer needs to be included within the District.

 

NEXT STEPS

 

Under the provisions of State Statute 160A-538, certain steps need to be taken to extend the boundaries of the Downtown Service District: 

 

1.      A report recommending changes to the District boundaries needs to come to the Council including:

a.       A map of the service district and the adjacent territory, showing the present and the proposed boundaries of the district.  See Attachment 2.

b.      A statement showing that the area to be annexed is contiguous to the district.

c.       A plan for extending services to the area to be annexed to the district.

2.      Letters need to be sent to the individual property owners who are affected by the proposed changes four weeks before the Public Hearing.

3.      Public notice of the Hearing needs to be published at least one week before the hearing.

4.      A Public Hearing needs to be held at least four weeks after the letters are sent to the property owners.

 

Following the public hearing, upon a finding that the area to be annexed requires the services of the district, the Council may by resolution annex territory to the service district.

 

Under the provisions of State Statute 160A-538.1, a public hearing is required to reduce the boundaries of a service district.

 

Pursuant to the provisions of G.S. 160A-538 and G.S. 160A-538.1, changes to the boundaries are to be effective at the end of a fiscal year.  We recommend the changes be effective 11:59 p.m., June 30.

 

RECOMMENDATION

 

We recommend that the Council authorize the Manager to notify potentially affected property owners of proposed changes to the boundaries of the Downtown Service District and prepare the required report and have it available for public inspection in the Town Clerk’s office at least two weeks before the date of the hearing to consider extension of the Service District boundaries. 

 

ATTACHMENTS

 

  1. Listing of proposed affected property owners (p. 5).
  2. Maps of current and proposed Downtown Service District boundaries (p. 7).