Title
Vote to request a Legislative repeal of Session Law 2007-43, Section 2
Abstract
Introduction & Background: In 2007, the NC General Assembly passed SL 2007-43. Section 2 of this Law states “The City of Sanford shall not annex any areas pursuant to Part 4 of Article 4A of Chapter 160A of the General Statutes that are located within Chatham County.” Being introduced and passed by the General Assembly in 2007, this Session Law predates statewide annexation reform lead by the General Assembly beginning in 2011. At the time of this Session Law’s ratification, municipal jurisdictions in North Carolina possessed the authority to engage in involuntary annexation. Through the NC General Assembly’s annexation reform, municipalities are now only able to annex through the voluntary annexation process.
Also, since the enactment of this law, Chatham County has developed and maintained an excellent working relationship with the City of Sanford, culminating in the successful creation of the TIP Megasite in Moncure and the recruitment of VinFast electric vehicle manufacturing. Sanford has also been working cooperatively with the Towns of Pittsboro and Siler City to merge their utility systems and provide much needed opportunities for growth.
Discussion & Analysis: The City of Sanford currently serves the TIP Site and surrounding areas with water and wastewater under an Inter-Local Agreement. In order to achieve the density of development called for in Plan Moncure, as adopted by the Chatham County Board of Commissioners, public water and wastewater will need to be provided.
As noted earlier, only voluntary annexations are allowed under NC law. To date, the towns of Cary and Apex have extended into Chatham County through annexations. Given the annexation reform that took place after this Session Law was put into place and given the changing nature of service and infrastructure needs within the Moncure area in Chatham County, the subject Session Law restricting the City of Sanford’s ability to annex into Chatham County is outdated and does not reflect the ongoing collaborative and coordinated relationship under which both Chatham and Sanford currently benefit.
How does this relate to the Comprehensive Plan: The county’s Comprehensive Plan calls for the creation of a small area plan in Moncure, once a tenant is identified at the TIP Megasite, to give guidance for development in the Moncure area. The adopted small area plan for Moncure, “Plan Moncure”, has been adopted and calls for higher density and multi-use development like what would be expected within a municipal setting.
Plan Chatham calls for the preservation of rural character and lifestyle in Chatham County as well as the promotion of compact growth patterns by developing in and near existing towns, communities, and in designated, well planned, walkable mixed-use centers. By providing for density through municipal annexation, and the municipal services that will accompany municipal annexation, market demand for development can be concentrated within incorporated areas of the county, mitigating sprawl in the outlying rural areas of the county. Accordingly, development in these areas will be better planned and managed, while also relieving market demand that would otherwise compromise the balance of rural areas of the county.
Plan Chatham also notes the desire of the county to diversify its tax base and generate more high-quality, in-county jobs to reduce dependence on residential property taxes, create economic opportunity and reduce out-commuting. The services and density that accompany municipal development opens greater opportunity for industrial, commercial, and institutional growth, which in turn enhances tax base diversity and job opportunities for the residents of Chatham County.
Chatham County’s Comprehensive Plan states, as an objective, to provide infrastructure to support desired development and support economic objectives. Plan Moncure calls for an increase in density and diversity of use types in the Moncure area to support additional residential and commercial development to serve this growing area of the county. Enabling municipal annexation in this area will support the further development of infrastructure to accommodate this density and to provide municipal services for the residents and businesses in this area of the county.
Providing equitable access to high-quality housing for residents of Chatham County is also noted as an objective in Plan Chatham. The adopted small area plan for the Moncure area enhances density in this area of the county, which will provide greater housing options for the public, and will increase the opportunity for greater affordability of housing. Enabling municipal annexation in this area will also enhance the possibility of commercial and institutional development, which will further improve access to jobs and services in the Moncure area.
Budgetary Impact: The County would anticipate seeing an increase in the amount of property tax collected as a result of city level services in the Moncure area. This level of service will encourage a more commercial tax base. Additionally, under the current Inter-Local Agreement with Sanford, the County shares 20% of the property tax collected with the City if the development connects to Sanford wastewater. If Sanford were allowed to annex into the area, the sharing of the taxes would no longer occur for the areas annexed.
Recommendation/Motion: Motion to approve the request for repeal of SL 2007-43 Section 2.