TO: Mayor and Members of City Council
THRU: Telly C. Whitfield, Ph.D. - Assistant City Manager
Dr. Gerald Newton, AICP - Development Services Director
Jennifer Baptiste - Planning and Zoning Division Manager
FROM: David Nash, AICP - Senior Planner
Alicia Moore, Esq., MUP - Senior Planner
DATE: January 24, 2022
RE:
Title
AX21-008: Annexation request located along Ramsey Street, south of Tractor Road, (REID: 0542231198000 and 0542234876000), consisting of 117.7 acres and being the property of SRW Builders, LLC and Pelican Property Holdings, LLC; related to P21-59: Initial Zoning.
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COUNCIL DISTRICT(S):
Council District(s)
1 - Mayor Pro-Tem Kathy Jensen
b
Relationship To Strategic Plan:
Strategic Operating Plan FY 2022
Goals 2027
Goal 2: Responsible City Government Supporting a Diverse and Viable Economy
• Objective 2.1: Ensure a diverse City tax base
Goal 3: City Investment in Today and Tomorrow
• Objective 3.2 - Manage the City's future growth and strategic land use
Executive Summary:
The applicant, SRW Builders, LLC and Pelican Property Holdings, LLC, through Palmer N. Williams, Vice President, submitted a petition requesting annexation of 117.7 acres on the western side of Ramsey Street, south of Tractor Road. The area consists of two parcels. The northern parcel is currently vacant, and the southern parcel contains one single-family dwelling and a few accessory structures (pole barn, sheds, garage), per the applicant’s submission. The applicant has not submitted development plans for the area; however, the applicant has conveyed the intention to develop the area as a new residential subdivision of up to 250 single-family units.
The applicant has requested an initial zoning of the area as Single-Family Residential 15 (SF-15). The Zoning Commission recommended approval of SF-15 zoning on November 9, 2021.
Professional Planning Staff recommends approval of the annexation and initial zoning request.
Background:
The subject property is owned by SRW Builders, LLC and Pelican Property Holdings, LLC. The property consists of two parcels with the addresses of 7165 & 7249 Ramsey Street (REID: 0542231198000 and 0542234876000), located on the western side of Ramsey Street, south of Tractor Road. The property, which is located within the City’s Municipal Influence Area (MIA), is non-contiguous to the City’s municipal boundaries. The parcels are separated from the City Limit lines by Carvers Creek State Park. The annexation petition has therefore been processed as a non-contiguous, “satellite,” annexation. (See Annexation Area Map, attached.)
Because the property is within the City’s Municipal Influence Area (MIA), use of PWC services requires that the property be annexed, per City Council Policy 150.2. PWC has reported that sewer and water services are available; the developer will be responsible for extended sewer and water mains to the site.
See the attached Basic Information Sheet for more information about the property and the future project.
On November 9, 2021, the Zoning Commission held public hearing to review the initial zoning request for the property (P21-59). The Zoning Commission recommended approval of the initial zoning to Single-Family 15 (SF-15), per the applicant’s request.
Issues/Analysis:
Sufficiency: The City’s Real Estate Staff has found the annexation petition to be sufficient. (See Sufficiency Memo, attached.)
Compliance with Annexation Standard: Pursuant to the General Statutes, there are five standards that a satellite annexation area must meet in order to be annexed. (N.C.G.S. 160A-58.1(b)). This property meets the five standards, as shown in the attached Proposed Ordinance.
Effective Date: Pursuant to the General Statutes, the annexation ordinance may be made effective immediately or within six months from the date of passage. N.C.G.S. 160A-58.2). Staff recommends an effective date of January 24, 2022.
Compliance with City Development Standards: If the property is annexed, the property must be developed in compliance with City development standards. The owner/developer will be required to formally submit plans to the City for review and approval by the Technical Review Committee (TRC) prior to the issuance of City building permits. No development plans have been submitted to TRC to review.
Financial Impact of Annexation on the Property Owners: If the property is annexed, the property tax costs to the owners will increase, due to application of the City tax rate. However, this increase will be reduced by the elimination of certain taxes (such as the County fire district tax and the County recreation tax.)
Currently, one of the subject parcels is in a special use tax program, which is the Farm Program. Annexation of the property would not change the special use tax status of the parcel. However, future development of the parcel would change the status, and it would forfeit any tax benefits under the farm program.
As the property is developed, the owners will be subject to City property taxes, but the owners will also receive City services. The current owner and future lot owners will also be eligible for PWC inside-City utility rates, which are less than outside-City rates.
Services: City operating departments and PWC divisions have reviewed the proposed annexation, and they should be able to serve the property. (Appendix A, attached, provides a summary of services, costs, and revenues, as reported by City departments and PWC.)
Budget Impact:
Based on the projected costs and revenues, the annexation of the property should yield a positive impact for the City, particularly after the property has been fully developed, which is anticipated by February 28, 2028. Appendix A, attached, includes a summary of projected costs and revenues. This analysis is based on an assumed effective date of annexation of January 24, 2022.
Options:
1. Adopt the Annexation Ordinance with an effective date of January 24, 2022, and include approval of the final action consistent with the recommendation of the Zoning Commission.
2. Adopt the Annexation Ordinance with a specified effective date between January 25, 2022 and July 24, 2022, and include approval of the final action consistent with the recommendation of the Zoning Commission.
3. Do not adopt the Annexation Ordinance. This option means the property would remain outside the City, and the initial zoning would not occur.
4. Table action on the requested annexation.
Recommended Action:
Planning Staff recommends Option 1: Adopt the proposed ordinance annexing the area effective January 24, 2022, and establish the initial zoning consistent with the Zoning Commission recommendation.
Attachments:
1. Appendix A - Summary of Services, Costs, and Revenues
2. Legal Description Map
3. Annexation Area (Vicinity) Map (submitted by applicant)
4. Basic Information Sheet
5. Sufficiency Memo
6. Proposed Annexation Ordinance