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HomeMy WebLinkAboutAgenda 01-13-2026 WSUM CITY OF DUNK NORTH CAROLINi, m ere, co~eU.'rc ill;ftel CITY COUNCIL WORK SESSION 6:30pm, Tuesday, January 13, 2026 Dunn Municipal Building 401 East Broad Street Dunn, North Carolina 28334 -AG E N DA- CALLTO ORDER— William P. Elmore, Jr., Mayor INVOCATION PLEDGE OF ALLEGIANCE — April GauIden, Mayor Pro Tem CONSIDERATION & APPROVAL OF THE AGENDA CONSENTAGENDA Consent Agenda items are considered and approved by a single motion and vote. Any member of the City Council may request an item be removed, without a motion or a vote, from the Consent Agenda for separate consideration. If an item is removed from the Consent Agenda, that item will be placed under the Items for Discussion & Possible Action section of the agenda. 1. Approval of December 9, 2025 Regular Minutes ITEMS FOR DISCUSSION & CALENDARING FOR JANUARY 27, 2026 REGULAR MEETING 2. Water Treatment Plant Land Purchase Financing 3. Rezoning Application (RZ-25-03) -Vann Lane 4. Rezoning Application (RZ-25-04) —Dogwood Knoll Street and Fairground Road 5. Termination of Contract to Sell Real Property— Stoney Run Property 6. FY25 Audit Contract Agreement 7. Acceptance of Monetary Donation to Police Department REPORTS & UPDATES 8. City Manager's Report 9. Updates a. Police Department ANNOUNCEMENTS CLOSED SESSION If called, the motion to enter closed session must cite the North Carolina General Statute that authorizes the closed session. ADJOURNMENT The City of Dunn is an equal opportunity provider and employer. Page 1 of 1 � CITY OF rnm I I ) (,, UNN g NORTH a XAelie, wPtft6u4 Xei btsl Work Session, January 13, 2026 Agenda Item(s): December 9, 2025 Regular Meeting Minutes Presenter(s): Melissa Matti, City Clerk Responsible Staff: Melissa Matti, City Clerk Action Item: Yes Attachment(s): 1) December 9, 2025 Regular Meeting Minutes Background None Budget Impact None Staff Recommendation(s) Approval of Minutes as presented. Suggested Motion(s) Motion to approve December 9, 2025 Regular Meeting Minutes as presented. Page 1 of 1 Dunn City Council Regular Meeting Tuesday, December 9, 2025 6:30 p.m., Dunn Municipal Building Minutes PRESENT: Mayor William P. Elmore Jr., Mayor Pro Tern April Gaulden, Council Members J. Wesley Sills, Raquel McNeil, Billy N. Tart, Alan Hargis, and Dr. David L. Bradham. Also present: City Manager Justin Hembree, Assistant City Manager Billy R. Godwin, Interim Police Chief Nick Simmons, Captain MattSmith, Parks and Recreation Director Brian McNeill, Water Plant Manager Ian Stroud, Code Enforcement Officer Stephen Hodges, Code Enforcement Officer Alan Canady, Administrative Support Specialist Christy Sweeney, City Attorney Tilghman Pope and City Clerk Melissa Matti. CALL TO ORDER Mayor William P. Elmore, Jr. called the meeting to order at 6:30 PM on Tuesday, December 9, 2025, at the Dunn Municipal Building. He welcomed everyone in attendance and asked attendees to silence their cell phones to avoid interruptions during the meeting. CONSIDERATION & APPROVAL OF THE AGENDA Motion by Council Member Bradham, second by Mayor Pro Tern Gaulden to approve the agenda. All in favor; Motion unanimously approved. INVOCATION & PLEDGE OF ALLEGIANCE Dr. Dennis Emmanuel led the invocation. Dr. Emmanuel has been in ministry for 42 years and has served as a pastor in the Dunn area for nearly the same amount of time. Mayor Elmore recognized Dr. Emmanuel's contributions to the community, noting his service as Police Department Chaplain and his coordination of prayers for City Council Meetings. Following the invocation, Council Member David Bradham led the Pledge of Allegiance. PUBLIC COMMENT PERIOD There were no Public Comments. Hearing none, Mayor Elmore closed the Public Comment Period. CONSENT AGENDA Mayor Elmore presented the Consent Agenda items, which included three (3) items: • Approval of November 18, 2025Regular Minutes • Adoption of the 2026 Council Meetings Schedule, and • Approval of changes to the Personnel Policy regarding sick leave. Motion by Council Member McNeil, seconded by Mayor Pro Tern Gaulden, to approve Consent Agenda items 1-3. All in favor; Motion carried unanimously. Copies of the Resolution Adopting the 2026 Council Meeting Schedule (R2025-54) and the Revised Personnel Policy are incorporated into these minutes as Attachment #1. Voluntary Contiguous Annexation Petition PINS 1517-37-0736.000, 1517-37-9653.000, and 1517-47-0665.000 ANX-07-25 - Vann Lane - Step #2 City Manager Hembree presented this item, explaining that the Council was being asked to consider fixing the date for a Public Hearing for the Vann Lane Voluntary Contiguous Annexation Petition (ANX-07-25). He noted that at the previous meeting on November 18, the Council had adopted a Resolution Directing the Clerk to Investigate the Voluntary Annexation Petition. A certificate of sufficiency was included in the Council's agenda packet. Mr. Hembree explained this was step two of a three -step process and recommended that Council adopt the Resolution Fixing the Public Hearing Date for January 27, 2026, at 6:30 PM. Motion by Council Member Sills, seconded by Mayor Pro Tern Gaulden, to adopt the Resolution Fixing the Date of Public Hearing as January 27, 2026, at 6:30 PM for the Voluntary Contiguous Annexation Petition ANX-07-25 -Vann Lane - Barefoot Land & Rental Investments, LLC. All in favor; Motion carried unanimously. A copy of the Resolution Fixing the Date of Public Hearing as January 27, 2026 at 6:30 p.m. for the Voluntary Contiguous Annexation Petition ANX-07-25 - Vann Lane - Barefoot Land & Rental Investments, LLC (R2025-55) is incorporated into these minutes as Attachment #2. Annexation Legislation Local Bill Request Assistant City Manager Godwin presented this item, explaining that the Council was being asked to consider making a formal written request to the State Legislative Delegation for a Local Bill to exempt Dunn from the "10 Percent Rule" regarding satellite annexation. Mr. Godwin explained that under current State Law, a municipality's total satellite annexation area cannot exceed 10% of the total area of the City. While Dunn currently stands at only about 5.S% of the allowable threshold, Mr. Godwin noted that just one or two large industrial annexations could push the City past this limit. He emphasized that over 130 municipalities throughout North Carolina have already received exemptions from this provision, but such exemptions must be specifically requested through the legislative process. Mr. Godwin clarified that even if the Legislative Delegation agrees to file the bill, it would still need to be enacted by the General Assembly, passing through both the House and Senate. Motion by Council Member Hargis, seconded by Council Member Bradham, to approve making a formal request to the State Legislative Delegation to exempt the City from G.S. 160A-58.1(b)(5). All in favor; Motion carried unanimously. A copy of formal request letters to The Honorable Howard Penny, Jr. and The Honorable Jim Burgin is incorporated into these minutes as Attachment #3. Appointments to the I95/140 Crossroads of America Economic Development Alliance Mayor Elmore explained that the City of Dunn, along with the Town of Four Oaks, established the I95/I40 Crossroads of America Economic Development Alliance years ago. The City of Dunn has four voting members on the Alliance board: one (1) Council member and three (3) members from the private sector. To maintain continuity, the board was designed with staggered terms. Mayor Elmore recommended that David Bradham, who has served as Vice Chair of the organization since its inception, be reappointed to represent the Council on the board. He also recommended reappointing Walter Massey, noting his outstanding service. Both would serve four-year terms. Additionally, Mayor Elmore recommended extending the terms of Matthew Smith and Jeffrey Dunn by two years, which would achieve the staggered terms structure for continuity. Motion by Council Member Alan Hargis, seconded by Mayor Pro Tern Gaulden, to extend the 2024 term of the Alliance Board appointments for Jeffrey Dunn and Matthew Smith by two years to now run from August 1, 2023 to July 31, 2027, and to appoint David Bradham and Walter Massey to the Alliance Board for a four-year term from August 1, 2025 to July 31, 2029, and to make this action retroactive to July 2025. All in favor; Motion carried unanimously. Parks & Recreation Board Appointment Senior Center Representative Parks and Recreation Director McNeil explained that Keith Williams, a longtime member and current Chair of the Parks and Recreation Advisory Board, had submitted his resignation after moving outside of the City limits. Mr. McNeil recommended using this vacancy as an opportunity to fulfill a requirement related to the City's Senior Center. He explained that when the City took over operation of the Senior Center, one of the requirements for receiving funding from Mid Carolina Council of Government (COG) was having an advisory board that included an active participant from the Senior Center. After consulting with the COG, Mr. McNeil confirmed that the City could consolidate this requirement with the existing Parks and Recreation Advisory Board, similar to how other municipalities like Fayetteville handle this requirement. He recommended appointing Annie Miller, an active Senior Center participant, to fill the vacant position on the board. Council Member Hargis asked why another applicant had been allowed to apply if there was a specific requirement for a Senior Center participant to fill the position. Mr. McNeil acknowledged this concern and agreed to explain the situation to the other applicant. Motion by Mayor Pro Tem Gaulden, seconded by Council Member Bradham, to appoint Annie Miller to the Parks and Recreation Advisory Board. All in favor; Motion carried unanimously. One -Year Extension Old Mill Stream Contract Parks and Recreation Director McNeil presented a request to extend the City's contract with Old Mill Stream, which handles lawn maintenance for numerous City properties, for one calendar year at a total cost of $201,320. Of this amount, $105,560 would impact the current budget year, with the remaining $95,760 impacting fiscal year 2026-27. City Manager Hembree clarified, for the record, that this was a no -cost extension, meaning there was no change in cost from the current contract. Motion by Council Member Bradham, seconded by Council Member Hargis, to approve the one-year extension of Old Mill Stream contract for calendar year 2026. All in favor; Motion carried unanimously. A copy of the Lawn Maintenance Contract Extension is incorporated into these minutes as Attachment #4. Capital Project Ordinance Amendment WWTP Maintenance Building Project Finance Director McNallan explained that at the previous Council meeting, two (2) loans had been approved contingent on confirmation from the Local Government Commission (LGC) that they did not need LGC approval. After the meeting, it was discovered that the information provided was incorrect, and the loans did require LGC approval. Mr. McNallan had informed United Community 'Bank of the situation. He presented a Capital Project Ordinance Amendment that would shift the funding for the Wastewater Treatment Plant (WWTP) Maintenance Building Project from loan/installment financing to sewer fund reserve funding. Regarding the other loan for the Pearsall Street Project, Mr. McNallan noted that he would bring that forward at a later date, as the City was applying for additional grant funding that might cover what they were planning to borrow. Motion by Council Member Hargis, seconded by Mayor Pro Tem Gaulden, to approve the WWTP Maintenance Building Capital Project Ordinance Amendment and related Budget Amendment. All in favor; Motion carried unanimously. Copies of the WWTP Maintenance Building Capital Project Ordinance (02025-26) and related Budget Amendment (BA-2025-13) are incorporated into these minutes as Attachment # S. Future Use of Council Chambers for District Court City Manager Hembree reminded the Council that in August, they had taken action indicating that they had no opposition if District Court was moved from the Council Chambers to the main courthouse. Since that time, the court system had requested that the Council take more definitive action by specifically requesting that District Court no longer be held in the Council Chambers. Mr. Hembree explained that this request seemed noncontroversial within the local legal community and recommended that the Council authorize staff to send a letter to Chief District Court Judge Frank Wood making this formal request, which would make it easier for the judge to process the request through the Administrative Office of the Courts. Motion by Council Member McNeil, seconded by Council Member Tart, to request the closure of Dunn District Court and to authorize a letter to be sent to Judge Frank Wood and other relevant parties to request that Dunn District Court be closed except as needed in an emergency. All in favor; Motion carried unanimously. A copy of the letter to Judge Frank Wood requesting that Dunn District Court be closed except as needed in an emergency is incorporated into these minutes as Attachment #6. REPORTS & UPDATES City Manager's Report City Manager Hembree reported that staff was planning for the upcoming budget retreat. While still some time away, he noted that it would be about a month after returning from the Christmas break. He indicated they might take a slightly different approach this year, focusing on bigger picture items and strategic initiatives, and invited Council members to provide input on what they would like included. Mr. Hembree also addressed the ongoing leaf collection efforts. He noted that the Public Works Department was actively operating the City's single leaf truck daily but had experienced a backlog following the Thanksgiving holiday when many residents put leaves out for collection. He acknowledged receiving calls about the wait times but explained that with only one leaf truck serving a relatively large jurisdiction, delays were occurring. He suggested this might be a topic for the upcoming budget retreat. Finance Director's Report Finance Director McNallan presented the Financial Report for the month ending November 2025. The City had $8.7 million in cash and investments at the end of November, compared to $8.1 million the previous year, marking the first month in several months with a year -over -year increase. The City also had $6.2 million in the East Side Pump Station construction account. Mr. McNallan noted that November represented five months into the fiscal year (approximately 41%). For sales tax, August receipts were $328,000, which was $43,000 more than the same period last year. Year-to- date sales tax collections were $662,000, representing about 19% of the budgeted amount. Building permits and development fees for November were $8,700, with year-to-date collections of $90,000 (approximately 49% of the budgeted amount). Departmental Reports & Project Updates Planning City Manager Hembree announced that Stephanie Goodrich had been hired as the new Senior Planner. Ms. Goodrich previously worked as a Senior Planner for the City of Rocky Mount and was in the process of relocating to Dunn, having already made an offer on a house. Mr. Hembree indicated that Ms. Goodrich would be introduced at an upcoming Council meeting. Pavin Public Works Director Williams reported that the milling process had begun on the three (3) priority streets: Tracy Lane, East Harnett, and East Godwin. The contractor had completed the milling work and would be conducting proof rolling and grading the next day, with paving scheduled to begin on Thursday. Mr. Williams also noted that while the road was opened up, they would be replacing a damaged stormwater pipe on East Godwin to avoid future issues. City Manager Hembree added that this work represented just the first phase of the paving project, with these three roads scheduled to be completed by December 15 per the contract. The overall project has a completion date of June 30, 2026. He noted that some crack sealing and patching work would continue through the winter months, with the contractor likely returning in February or March to complete the remaining roads in the project. Mr. Hembree commended Mr. Williams for effectively serving as the Project Manager and ensuring the work was proceeding on schedule. Council Member Hargis inquired about plans to pave Pearsall Street near the recently reopened bridge. Mr. Williams explained that they were obtaining quotes and considering a project that would include replacing the aging water line before paving to avoid having to cut into new pavement for future water line repairs. Mr. Hargis emphasized the importance of completing this work promptly given the inconvenience residents had already experienced during the bridge project. Code Enforcement Code Enforcement Officer Canady presented before and after photos of two properties where code enforcement actions had led to significant improvements. The first property at 411 North Layton, an unoccupied house being used for storage, had its damaged siding completely replaced. The second property at 808 East Pearsall, a storage building, also had its siding replaced following code enforcement notifications. Mr. Canady noted that they were addressing similar issues throughout the City and were working on a historic property that he hoped to show progress made at the next Council meeting. Code Enforcement Officer Hodges provided additional Code Enforcement updates, noting that new owners had purchased the Hannah's Pond property and were cleaning it up, though he clarified the property was outside city limits. He also reported that the Exit 75 highway project was nearing completion, with DOT crews laying down stripes that day. Mr. Hodges mentioned that four (4) houses had upcoming minimum housing hearings scheduled for the month, and depending on whether the owners made improvements, the Council might need to take action at a future meeting. CLOSED SESSION Following Council Member comments, including appreciation for City staff and positive remarks about the recent holiday parade, the Council moved into closed session. Motion by Council Member David Bradham, seconded by Mayor Pro Tem Gaulden, to go into closed session to consult with the City Attorney to preserve attorney -client privilege. All in favor; Motion carried unanimously. The Council entered closed session to consult with the City Attorney to preserve attorney -client privilege at 7:15 p.m. ADJOURNMENT A Motion was property made and seconded to adjourn the meeting. Motion carried unanimously. William P Elmore, Jr. Mayor Attest Melissa R. Matti City Clerk 7711-- CITY OF I', DUNN W-OOOO NORTH CAROLINA ��e- c-i-,ow� le#qsl Work Session, January13, 2026 Agenda Item(s): Water Treatment Plant Land Purchase Financing Presenter(s): Cary McNallan, Finance Director Responsible Staff: Cary McNallan, Finance Director Action Item: Yes Attachment(s): 1) Public Hearing Notice 2) Resolution to approve proposed financing Purpose: a) Public Hearing: Consideration of the proposed issuance of limited obligation bonds (the "Bonds") under a proposed Trust Agreement (the "Trust Agreement") pursuant to Section 160A-20 of the General Statutes of North Carolina, as amended, in an aggregate principal amount not to exceed $3,500,000 for the purpose of providing funds, together with any other available funds, to pay (a) the costs of acquiring several parcels of land by the City to be utilized for future water treatment plant expansions (the "Project") and (b) the fees and expenses incurred in connection with the sale and issuance of the Bonds. If the City issues the Bonds pursuant to the Trust Agreement, it will secure its obligations thereunder by a deed of trust granting a lien on all or a portion of the sites of the Project, together with all improvements or fixtures located or to be located thereon. b) Decision Background The Dunn Water Treatment Plant (WTP), which is located in Erwin, is in need of upgrades and expansion. In 2025, the Dunn City Council approved entering into an agreement of purchase for eight parcels of land at a cost of $5.25M. These parcels are all within close proximity of the WTP and would allow for the future expansion of the plant. Some of these properties may not be needed for the expansion and could be sold at a future date. Page 1 of 2 The City plans to finance $3.5M of this purchase with a fifteen -year limited obligation bond. In December 2025, bids were received from Webster Bank and JP Morgan Chase Bank. Based on discussion with our bond counsel and financial advisors, it was recommended that we pursue the 15-Year Term Callable Limited Obligation Bond option presented by JP Morgan Chase Bank. Representatives from Davenport Public Finance will be in attendance to answer any questions on the financing options. Staff Recommendation(s) Staff recommends that the City Council approve the 15-Year Term Callable Limited Obligation Bond option presented by JP Morgan Chase Bank. Budget Impact The impact on the FY27 Water Fund budget will be an increase in debt principal and interest payments of approximately $307,000 which would likely require a 9.75% increase in water rates to fund. Suggested Motion(s) Motion to approve the attached resolution making certain findings and determinations regarding the proposed financing of the acquisition of land for future water plant expansions for the city, approving the purchaser, and requesting the Local Government Commission to approve the financing arrangement. Page 2 of 2 NOTICE OF PUBLIC HEARING The City Council of the City of Dunn, North Carolina (the "City") has determined to consider whether to issue limited obligation bonds (the "Bonds") under a Trust Agreement (the "Trust Agreement") pursuant to Section 160A-20 of the General Statutes of North Carolina, as amended, for the purpose of providing funds, together with any other available funds, to pay (a) the costs of acquiring several parcels of land by the City to be utilized for future water treatment plant expansions (the "Project") and (b) the fees and expenses incurred in connection with the sale and issuance of the Bonds. The City would be obligated to pay debt service on the Bonds in an aggregate principal amount not to exceed $3,500,000, together with interest thereon. If the City issues the Bonds pursuant to the Trust Agreement, it will secure its obligations thereunder by a deed of trust granting a lien on all or a portion of the sites of the Project, together with any improvements or fixtures located or to be located thereon. Section 160A-20 of the General Statutes of North Carolina requires that the City hold a public hearing prior to issuing the Bonds pursuant to the Trust Agreement. Please take notice that the City Council will conduct a public hearing in the Council Chambers located at the Dunn Municipal Building, 401 E. Broad Street in Dunn, North Carolina, at 6:30 p.m. on January 13, 2026, at which time any person may be heard regarding the proposed financing as described above. Any person wishing to comment in writing on the proposed financing should do so prior to January 13, 2026 to the City of Dunn, North Carolina, 401 E. Broad Street, Dunn, North Carolina 28334, Attention: Melissa Matti, City Clerk. Melissa Matti City Clerk City of Dunn, North Carolina T 1887 RESOLUTION MAKING CERTAIN FINDINGS AND DETERMINATIONS REGARDING THE PROPOSED FINANCING OF THE ACQUISITION OF LAND FOR FUTURE WATER PLANT EXPANSIONS FOR THE CITY, APPROVING THE PURCHASER AND REQUESTING THE LOCAL GOVERNMENT COMMISSION TO APPROVE THE FINANCING ARRANGEMENT BE IT RESOLVED by the City Council (the "City Council") for the City of Dunn, North Carolina (the "City") as follows: Section 1. The City Council does hereby find and determine as follows: (a) The City has determined to finance the acquisition of several parcels of land to be utilized for future water treatment plant expansions (the "Project"). (b) After a public hearing and due consideration, the City has determined to enter into a Master Trust Agreement and a First Supplemental Trust Agreement (collectively, the "Trust Agreement") each between the City and a corporate trustee (the "Trustee"), pursuant to which the City will issue limited obligation bonds thereunder in an aggregate principal amount not to exceed (c) $3,500,000 (the "Bonds") to provide funds, together with any other available funds, to (i) pay the costs of the Project and (ii) pay the fees and expenses incurred in connection with the sale and issuance of the Bonds. (d) In order to secure its obligations under the Bonds and the Trust Agreement, the City will execute and deliver a Deed of Trust (the "Deed of Trust'), for the benefit of the Trustee, granting a lien on all or a portion of the sites of the Project, together with any improvements or fixtures located or to be located thereon. (e) The City has solicited and received proposals from various financial institutions to purchase of the Bonds in order to provide funds for the purposes described above, and upon careful review and consideration thereof, the City desires to accept the proposal of JPMorgan Chase Bank, N.A., or its designee or assignee (the "Purchaser"). (f) It is in the best interest of the City to enter into the Trust Agreement and to issue the Bonds in that such plan of finance will result in the financing of the Project in an efficient and cost-effective manner. (g) Issuing the Bonds pursuant to the Trust Agreement is preferable to a general obligation bond and revenue bond issue in that (i) the cost of financing the Project exceeds the amount to be prudently provided from currently available appropriations and unappropriated fund balances; (ii) the existing circumstances require that funds be available to finance the Project as soon as practicable, the City does not have sufficient constitutional authority to issue non -voted general obligation bonds pursuant to Article V, Section 4 of the North Carolina Constitution and the time required for holding an election for the issuance of voted general obligation bonds will delay the commencement of the financing of the Project by several months; (iii) Ifltiere communi� kTins! 1887 there can be no assurances that the issuance of general obligation bonds to finance the Project would be approved by the voters and the current interest rate environment dictates the financing of the Project be accomplished in a timely and expedient manner; and (iv) the utilization of an installment financing arrangement for financing the Project and securing the same with a lien on all or a portion of the sites of the Project is prudent and in the best interests of the City. (h) Based upon information provided to the City Council, the costs of the financing described above is reasonably comparable to the costs associated with other alternative means of financing and is acceptable to the City Council. (i) Bond counsel to the City will render an opinion to the effect that the proposed undertaking as described above is authorized by law and is a purpose for which public funds may be expended pursuant to the Constitution and laws of the State of North Carolina. (j) The debt management policies of the City have been carried out in strict compliance with law, and the City is not in default under any obligation for repayment of borrowed money. (k) No tax rate increase is expected to be necessary to pay principal of and interest on the (1) Bonds. Section 2. The proposal of the Purchaser to purchase the Bonds in order to provide funds to pay the costs of the Project and pay the fees and expenses relating to the sale and issuance of the Bonds in a principal amount not to exceed $3,500,000 is hereby accepted, subject to further approval of the particular documentation related thereto by the City Council. The City Manager and the Finance Director of the City are each hereby authorized and directed to execute and deliver such documentation as may be necessary to accept the proposal of the Purchaser, and any actions heretofore taken with respect to such matters are hereby authorized, ratified and approved. Section 3. The City Council hereby authorizes and approves the filing of an application with the Local Government Commission for approval of the Bonds and the Trust Agreement and requests the Local Government Commission to approve the Bonds and the Trust Agreement and the proposed financing in connection therewith. Section 4. This resolution shall take effect immediately upon its adoption. Adopted this 13rh day ofJan uary 2026. ATTEST: Melissa R. Matti City Clerk William P. Elmore Jr. Mayor 'Mere communi� 6!yins! 2026 Limited Obligation Bond Summary of Financing Proposals City of Dunn, North RCITY 01- NORTH CAkOLINk. v6erc commanit 69ins! January 13, 2025 DAVENPORT M PUBLIC FINANCE W Member NYSE I FINRA I SIPC Overview of RFP Process 4 CITY OF mi DUNN ® NORTH CAROLINA w4em commcmit 6!9inr! ■ An RFP for a Direct Bank Loan financing was distributed on November 17, 2025 to over 50 National, Regional, and Local lending institutions to finance the acquisition of land by the City to expand its existing Water Treatment Plant. ■ After the initial distribution, Davenport reached out to the potential bidders to assess their interest in the financing and address any questions they had. ■ Responding institutions were asked to provide proposals for a Direct Bank Loan as evidenced by a Tax -Exempt Limited Obligation Bond (the "2026 LOB") with a par amount of up to $3,500,000 and a term of 15 or 20 years. ■ On December 15th, 2025, Davenport received proposals from the following two (2) financial institutions: — JPMorgan Chase Bank, N.A. ("Chase") — Webster Bank N.A. ("Webster") ■ The feedback received from other banks who opted to pass included things such as no existing relationship, the loan amount was too small, the requested term was too long, or that they did not typically fund land -only purchases. No credit concerns were raised regarding the City. ■ A summary of the proposals received is shown on the following pages. DAVENPORT PUBLIC FINANCE January 13, 2025 City of Dunn, NC Summary of Proposals A B C Lender Chase Bank CHASE ! i 15-Year Term Callable Interest Rate 3.97% (Bank Qualified) Prepayment Language Prepayable on/after 5/1/2031 @ 100% CITY OF DUNN ® NORTH CAROLINA lNerc communi� klinr! Webster Bank 0 WebsterBank 15-Year Term 20-Year Term 4.180% 4.460% Prepayable on/after 5/1/2031 @ 102%, Prepayable on/after 5/1/2031 @ 102%, declining thereafter declining thereafter Term/Final Maturity May 1, 2041 May 1, 2041 May 1, 2046 Collateral to Loan Value Minimum 50%Collateral to Loan Value Minimum 100%Collateral to Loan Value Acceptance/ Rate The rate can be locked up to 45 days before closing and will be fixed through the The term sheet shall expire on January 14, 2026. The interest rates quoted are valid Expiration life of the Loan. For a targeted closing of February 17, 2026, the rate can be through February 17, 2026. The rates are valid and locked through the life of the loan. locked on or after January 5, 2026. Credit Approval Credit has been approved Subject to final credit approval - no issues anticipated Bank Fees $10,000 $3,500 Lender's Counsel McGuireWoods Gilmore & Bell Bank will require the address for the property secured under the Deed of Trust Bank will require a Title Search, Title Insurance, an Environmental Survey, and a copy of Real Estate/Title Work and any existing property survey and title work held by the City for the subject any Survey's/Appraisals the Borrower may already have in their possession. Bank also Required property. Flood policy may be required. requires a Title Opinion and Flood Certifications The City would be subject to breakage fees if the project is cancelled post If the proposal is accepted and we are unable to close, there would be no fees/penalties Other Considerations Council approval owed by the City Note: Interest rates highlighted in red are indicative as of January 6, 2026 and subject to change DAVENPORT .January 13, 2025 PUBLIC FINANCE City of Dunn, NC 3 Debt Service Comparison A 2 Call Provisions 3 Interest Rate 4 Sources of Funds 5 Par Amount* 6 Total 7 Uses of Funds 8 Project Fund* 9 Local Costs of Issuance/Additional Proceeds* 10 Bank Fees 11 Additional Real Estate Work* 12 Total 13 Closing Date* 14 First Interest Payment 15 First Principal Payment 16 Final Maturity 17 Debt Service* 18 Fiscal Year 19 2027 20 2028 21 2029 22 2030 23 2031 24 2032 25 2033 26 2034 27 2035 28 2036 29 2037 30 2038 31 2039 32 2040 33 2041 34 2042 35 2043 36 2044 37 2045 38 2046 39 Total 40 Difference to Chase Proposal Chase Bank B 15 Years Prepayable on/after 5/1/2031 @ 100% 3,97% * Preliminary and subject to change. Note: Interest rates highlighted in red are indicative as of Janauary 6, 2026 and subject to change DAVENPORT January 13, 2025 PUBLIC FINANCE Webster Bank C 15 Years Prepayable on/after 5/1/2031 @ 102%, declining thereafter 4,18% 3,405,000 $ 3,405,000 3,250,000 101,500 3,500 50,000 $ 3,405,000 2/17/2026 11/1/2026 5/1/2027 5/1/2041 311,586 311,477 314,162 311,429 313,487 _ 315,127 311,349 312,362 312,957.. 313,134 312,893 312,234 311,157 314,662 312,540 $ 4,690,556 133,376 0 CITY OF DUNN NORTH CAROLINA Webster Bank D 20 Years Prepayable on/after 5/1/2031 @ 102%, declining thereafter 4.46% 3,405,000 $ 3,405,000 3,250,000 101,500 3,500 50,000 $ 3,405,000 2/17/2026 11/1/2026 5/1/2027 5/ 1/2046 263,079 263,295 263,166 262,814 262,239 261,441 265,420 263,953 262,263 265,350 262,991 265,409 262,381 264,130 265,433 261,290 261,924 262,112 261,854 261,150 $ 5,261,694 704,514 City of Dunn, NC 4 Recommendation and Next Steps Recommendation 41CITY OF DUNN NORTII CAROLINA w4em communifJt 6 ins! ■ Based upon our review of the proposals, related analyses, and discussions with City Staff and Bond Counsel, Davenport recommends that the City move forward with Chase Bank's Bank -Qualified Proposal. Based on the City's recent appraisal of the property, the City is able to meet Chase Bank's Collateral to Loan Value requirement (50%), pledging only the portion of the land it intends to keep for utility expansion purposes. Chase Bank's indicative rate (3.97%) is also favorable and can be locked in within 45 days of closing of the loan. Next Steps Date Action ■ City Council Work Session Meeting January 13t" at 6:30pm — Public Hearing Held — City Council considers selection of Lending Institution — City Council consider approval of Preliminary Findings Resolution ■ January 27t" at 6:30pm City Council Meeting City Council considers approval of Financing Resolution and forms of documents February 31a ■ Local Government Commission Meeting — LGC considers approval of the 2026 Loan Mid -February ■ Close on the 2026 Loan Note: Interest Rates highlighted in red are indicative as of January 6, 2026 and subject to change DAVENPORT January 13. 2025 City of Dunn, NC 5 PUBLIC FINANCE DAVENPORT January 13, 2026 City of Dunn, NG PUBLIC FINANCE Purchased Land Parcels to be used for expansion of water treatment plant City's Existing Water Treatment Plant Parcels to be resold at a later date cIiY 0`i DUNN ®!!NORTH CAROLIt,aA lNere wmmuml kll iml DAVENPORT � r t,< � -1 n : 025 k-",,v A [Dunn, M PUBLIC FINANCE Municipal Advisor Disclosure The enclosed information relates to an existing or potential municipal advisor engagement. CITY OF ■■�■� UNORTH��TN 414 CAROLINA W6em commcmii 6e ns! The U.S. Securities and Exchange Commission (the "SEC") has clarified that a broker, dealer or municipal securities dealer engaging in municipal advisory activities outside the scope of underwriting a particular issuance of municipal securities should be subject to municipal advisor registration. Davenport & Company LLC ("Davenport") has registered as a municipal advisor with the SEC. As a registered municipal advisor Davenport may provide advice to a municipal entity or obligated person. An obligated person is an entity other than a municipal entity, such as a not for profit corporation, that has commenced an application or negotiation with an entity to issue municipal securities on its behalf and for which it will provide support. 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Version 1.1.25 CL I TS I TW I JS DAVENPORT January 13, 2025 City of Dunn, NC PUBLIC FINANCE CITY OF DUNN NORTH CAROLINA ���& coAmnzo4 �ey&&rl Work Session, January 13, 2026 Agenda Item(s): Rezoning Application (RZ-25-03)—Vann Lane Presenter(s): Will Deaton, Interim Planning Director Responsible Staff: Will Deaton, Interim Planning Director Action Item: No Attachment(s): 1) Rezoning Application Background RZ-25-03 is a zoning map amendment to initially zone properties at 396 and 611 Vann Lane, along with an unaddressed parcel on Vann Lane. The request seeks to change the zoning from Harnett County's Residential/Agricultural (RA-20M) District to the City of Dunn's Residential 7 (R-7) District. This zoning request is part of the annexation process. The Planning Board voted unanimously to recommend approval at the January 6th meeting. Budget Impact None Staff Recommendation(s) Recommendation is to approve the Rezoning Request RZ-25-03 as presented. Suggested Motion(s) Motion to approve Rezoning Request (RZ-25-03) to rezone three parcels, PINs being 1516-73- 0736.000, 1517-47-0665.000, and 1517-37-9653.000, 73.32 acres +/- located near the intersection of Vann Lane and Meadowlark Road from Harnett County's Residential/Agricultural (RA-20M) district to the City of Dunn's Residential 7 (R7) District, as presented. Page 1 of 1 CITY OF 110D UNN PLANNING AND INSPECTIONS 102 N Powell Ave - PO Box 1065 • Dunn, North Carolina 28335 (910) 230-3505 •CityofDunn.org Case #: RZ-25-03 Meeting Date: January 6, 2026 PIN: 1516-73-0736.0001 1517-47-0665.000, and 1517-37-9653.000 Applicant: RP Wellons Land & Development, LLC Owner: Barefoot Land & Rental Investments, LLC Location: 01 396, and 611 Vann Lane REQUEST: The applicant is requesting a zoning map amendment to initially zone their properties at 396 and 611 Vann Lane, along with an unaddressed parcel on Vann Lane. The request seeks to change the zoning from Harnett County's Residential/Agricultural (RA-20M) district to the City of Dunn's Residential 7 (R-7) district. This zoning request is part of the annexation process. The subject properties are shown in red below. V&ra cammuni� 6 yinsj ZONING: SITE DATA: Acreage: Existing Use: Current Zoning: Proposed Zoning: 73.32 acres Single family residential and vacant land RA-20M (County) R-7 SURROUNDING PROPERTY DATA: Direction Zoning Existing Use North Residential Agricultural (RA-20M) (County) Agricultural South Residential Agricultural (RA-40) Agricultural & Residential West Residential Agricultural (RA-20M) (County) Agricultural East Residential Agricultural (RA-20M) (County) Agricultural & Residential LAND USE PLAN CONSISTENCY: This rezoning request is consistent with the City of Dunn Land Use Plan. The Future Land Use Map designates these properties as a Medium Density Residential character area. Medium Density Residential applies to majority single- family neighborhoods. Some attached dwellings may be appropriate, including clustering and conservation -oriented subdivisions, and townhomes may be considered as part of a planned development. Medium Density Residential areas are often characterized as "suburban", with few non-residential uses and low - volume neighborhood streets. Pedestrian facilities are appropriate, though connectivity with surrounding areas may be interrupted by higher volume arterial roads. Uses permitted in the R-7 zoning district are compatible with the City's vision for Medium Density Residential areas. Several nearby properties are currently zoned R-7 and previously developed or currently under development as residential developments to include duplexes. Relevant goals and objectives detailed in the Land Use Plan: Policy 1: Manage future growth and encourage quality development through implementation of the Strategic Vision Plan, the Land Use Plan, the Unified Development Ordinance (UDO), and other plans and regulations adopted by the City Council. • 1.2: Support residential development at varying densities based on the Future Land Use Map, associated character area descriptions, and other relevant plans. Policy 6: Encourage a range of housing types based on the availability of infrastructure, proximity to services and amenities, and compatibility with existing development as described in the Future Land Use Map. • 6.2: Within larger developments, encourage higher density housing types be located in those areas with closest proximity to services, amenities, and infrastructure. RECOMMENDATION: Staff recommend approval of RZ-25-03 based on the requested zoning's consistency with the Dunn Land Use Plan. The uses permitted in the Residential 7 (R-7) zoning district are compatible with the City's vision for areas designated as Medium Density Residential areas on the Future Land Use Map. Uses permitted in R-7 are compatible with the City's vision for this character area, and properties near the subject property are also zoned R-7. CONSIDERATIONS: ® The Planning Board shall make a recommendation to approve or deny this rezoning request. • This rezoning request is conventional, not conditional, so no conditions of approval may be imposed. • Due to this rezoning request being conventional, all permitted uses in the requested zoning district should be considered. ATTACHMENTS: 1. Rezoning Application For Planning Department Use Only Case Number ft.7- �2 5-- 0 3 a : Date Received Le Fee PaidUNN Board Meeting �1 f�ORTN CARC��.INA g City Council Meeting REZONING APPLICATION OWNERSHIP INFORMATION: Applicant: RP Wellons Land & Development, LLC Phone Number: ( 910 892 3123 ) - Applicant's Legal Interest in Property: Purchaser - Residential Develoment Applicant's Address: Property Owner: PO Box 730, Dunn, NC 28335 Barefoot Land & Rental Investments, LLC - Sharon Elaine Barefoot, Registered Agent Owner's Address: 3201 Meadowlark Rd, Dunn, NC 28334 Date Property Acquired: 12/20/2022 Deed Reference: Book 4177 Page 0880 Tax PIN Number: 1517 _ -_ 37 0736_ .000 and 1517-47-0665.000 and 1517-37-9653.000 Size (Sq. Ft. or Acres) 73.32 aci, Street Frontage (ftl _ Location/Address: 611 and 396 Vann Lane, Dunn, NC 28334 Attach a legal description (Metes and Bounds Description) of the area requested. ZONING REQUEST: A. Existing Zoning: RA-20 Requested Zoning: R-7 B. Land Uses: Single Family & Agricultural 1. Existing land uses on property to be rezoned: 2. Existing or proposed land uses on all adjoining properties: North Agricultural/ Residential South Agricultural/Residential East Residential West Residential ADJOINING PROPERTY OWNERS (WITHIN 100 FEET OF REQUESTED CHANGE) NAME MAILING ADDRESS PIN NUMBER 1. Joan P Greene Trustee 319 Cedar Club Cir, Chapel Hill NC 27517-72'11 1517 - 38 7809 - 000 2. 1517 1517 2279 Joan P Greene Trustee 319 Cedar Club Cir, Chanel Hill NC 27517-7211 - .000 3. 8021 08 8021 Joan P Greene Trustee 319 Cedar Club Cir, Chapel Hill NC 2 - - .000 4. PO Box 730 1517 17 2306000 Dunn, NC 9 9 3 3 5 - - RP Wellons Land & Development, LLC 5. PO Box 730 1517 - 16 - 0758 000 Dunn, Nc 28335 RP Wellons Land & Development, LLC 6. 319 Cedar Club Cir 1517 6 8890 Chapel Hill, NC 27517-7211 - - .000 Joan P. Greene, Trustee 7. 805 N Park Ave. 1517 36 1342 Dunn, NC 2334 - - .000 Carol Johnson 8. 711 Old Fairground Rd 1517 46 6406 Dunn, NCB - - 000 Glad Tidings Church 9. 112 Vann Ln 1517 47 2068 Dunn, NC 293-�4 - - .000 Dannie Ray Vann 10. 804 Oakwood Ave 1517 L7 1879 Dunn, NC - - .000 Pamela V Johnson, Trustee 11. 23 8 Vann Ln Dunn, NC 28334 1517 47 - 3888 - .000 Charles W Vann, Jr 12. Roger &Kimberly Faircloth 112 Vann Ln Dunn, NC 28334 1517 - 47 - 2879 .000 5 OWNER'S CERTIFICATION I (We) do herby certify that: I am (We are) the owners or authorized agent of the property described in this application for rezoning and have attached copies of deed, title reports or other documents as proof of ownership. I (We) have read the rezoning procedures, requirements and have truthfully completed this application for rezoning. I (We) understand that the filing fees are non-refundable; the process to review rezoning cases includes public hearings and review by both the Planning board and the City Council. I (We) understand that any action to approve our request is at the discretion of the Planning Board and the City Council and additional requirements may be imposed as determined necessary. 01 O o S Signature Date Sworn to and subscribed before me this day of 20 0 S O J ' ANE •• - N O Notary Publ c '2= =D� ` Cdmmisn Expires: • S • �� a-- 'G 46,441NN 111 00 a C. Statement of Justification: (City Code, Article II of Section 22) The proposed zone shall be greater than three (3) acres of land or... if smaller, the property adjoins and is contiguous to two (2) zoning districts after the proposed change. Attach a statement justifying the requested map change based upon the following: 1) The amendment, if small scale, is reasonable based upon surrounding conditions. 2) The impact of zoning is in the public interest and does not significantly harm the surrounding properties. 3) The amendment is warranted due to changed or changing conditions in the area. 4) The amendment achieves the purpose and is consistent with the Land Use Plan. Exhibit A C. Statement of Justification 1. The amendment is reasonable based upon surrounding conditions. The size of the subject real property tract (73.32 +/- acres) makes the requested R-7 zoning amendment reasonable when you observe the conditions of the surrounding properties. The subject tract is surrounded on three sides by agricultural fields which are zoned R-20. The south side of the subject tract is currently under development as Seasons Subdivision, zoned R- 7. Property to the south is currently owned and under construction by the same applicant. The proposed use of the subject tract for single family residential purposes is reasonable for this location. 2. The impact of zoning is in the public interest and does not significantly harm the surrounding areas. The applicant intends to use the subject tract for single family residential development purposes. To properly develop, market, and sell the individual single family units on the subject tract, a R-7 zoning classification is needed. The R-7 zoning designation will allow residential development of new single-family housing of a nature that is in demand by current and future citizens of the City of Dunn. The planned development will increase the tax base for the city and should increase economic activity in the area. This planned single family housing will have no detrimental effect on the surrounding agricultural area and no significant harm to the nearby residential properties. 3. The amendment is warranted due to changed or changing conditions in the area. The location of the subject tract is at the border of R-7 residential subdivision and R-20 Large agricultural tracts. Residential growth has existed in this area; however the residential market continues to change in this area of the City of Dunn as smaller residential lots and housing units are more economically feasible for citizens. Housing customers are willing to trade off housing size square footage in exchange for homes with custom features and amenities with smaller yards to maintain. The requested R-7 district better meets the development requirements of the market. At the same time this zoning classification would still adhere to and maintain the single-family residence concept thereby preserving that aspect of development in the area. 4. The amendment achieves the purpose and is consistent with the Land Use Plan. The 2030 Lane Use Plan for the City of Dunn identifies the future development areas maps and future land use map support the proposed R-7 zoning for the subject tract in that these maps show this area as planned for residential use and growth. The rapid development of the Gleneagles and Middleton Townes Community, in the past few years is an example of the type of residential development that the land use plan envisioned. Therefore, the requested R-7 district designation consistent with the City of Dunn Land Use Plan. Being all of three tracts located in City of Dunn, Averasboro Township, Harnett County, NC Being all of the following properties: BAREFOOT LAND AND RENTAL INVESTMENTS, LLC 1517-37-0736.000 - DB 4177, PG 180 1517-37-9653.000 - DB 4177, PG 180 1517-47-0665.000 - D B 4177, PG 180 And more particularly described as follows: COMMENCING at a point, said point beingthe northeastern corner of James Ricky Tripp & Elsie Marie Tripp Hardee as recorded in Deed Book 2896, Page 130, Harnett County Registry and having coordinates of N 576,413.56 and E 2,112,147.09 NC GRID NAD 83 (2011); thence running as a tie North 48 degrees 10 minutes 17 seconds West to a point and N 47 degrees 37 minutes 41 seconds West, 167.78'to the POINT OF BEGINNING; thence leaving said point and running the following bearings and distances: North 47 degrees 54 minutes 00 seconds West, 192.89'to a point; thence North 44 degrees 09 minutes 00 seconds West, 1,171.10'to a point; thence North 44 degrees 13 minutes 00 seconds West, 706.00'to a point; thence alongthe run of Secon Branch the following bearings and distances: North 88 degrees 43 minutes 00 seconds East, 27.50'to a point; thence North 77 degrees 06 minutes 00 seconds East, 204.11to a point; thence South 46 degrees 20 minutes 00 seconds East, 47.80'to a point; thence North 78 degrees 52 minutes 00 seconds East, 105.29'to a point; thence North 67 degrees 14 minutes 45 seconds East, 86.15'to a point; thence North 79 degrees 17 minutes 00 seconds East, 114.08'to a point; thence South 87 degrees 25 minutes 00 seconds East, 99.86'to a point; thence North 75 degrees 23 minutes 00 seconds East, 206.94'to a point; thence South 87 degrees 28 minutes 00 seconds East, 68.20'to a point; thence North 89 degrees 13 minutes 00 seconds East, 113.56to a point; thence North 06 degrees 14 minutes 00 seconds East, 57.98'to a point; thence South 83 degrees 29 minutes 31 seconds East,129.60'to a point; thence North 56 degrees 21 minutes 16 seconds East, 158.31'to a point; thence leaving said Secon Branch and continuing South 03 degrees 27 minutes 12 seconds East, 265.14'to a point; thence South 06 degrees 11 minutes 12 seconds East, 1,087.04'to a point; thence South 06 degrees 11 minutes 12 seconds East, 477.57'to a point; thence South 54 degrees 18 minutes 04 seconds East, 290.37to a point; thence South 53 degrees 30 minutes 39 seconds East, 229.11'to a point; thence North 48 degrees 24 minutes 00 seconds East, 874.52'to a point; thence North 48 degrees 24 minutes 00 seconds East, 233.40'to a point; thence South 60 degrees 02 minutes 00 seconds East, 554.82'to a point; thence South 44 degrees 52 minutes 00 seconds West, 409.10'to a point; thence North 49 degrees 50 minutes 00 seconds West, 460.65'to a point; thence North 43 degrees 23 minutes 30 seconds East, 68.53'to a point; thence North 46 degrees 32 minutes 17 seconds West, 131.15'to a point; thence South 44 degrees 58 minutes 43 seconds West, 315.70'to the POINT OF BEGINNING, containing 74.12 acres, more for Less. 40CITY OF DUNN NORTH CAROIINI GdAue c9�nrX�4 be#"s1 Work Session, January 13, 2026 Agenda Item(s): Rezoning Request (RZ-25-04) - Dogwood Knoll Street and Fairground Road Presenter(s): Will Deaton, Interim Planning Director Responsible Staff: Will Deaton, Interim Planning Director Action Item: No Attachment(s): 1) Rezoning Application Background RZ-25-04 is a zoning map amendment to rezone six (6) parcels along Fairground Road and Dogwood Knoll Street. The request seeks to change the zoning from the Shopping Center (C-2) District to the Residential 7 (R-7) district. The Planning Board voted unanimously to recommend approval at the January 6tn meeting. Budget Impact None Staff Recommendation(s) Recommendation is to approve the Rezoning Request RZ-25-04 as presented. Suggested Motion(s) Motion to approve RZ-25-04 to rezone one parcel, PIN being 1517-62-8128.000, 1517-61- 6938.000, 1517-62-8110.000, 1517-61-8939.000, and 1517-61-7939.000, 1.9 acres +/- located at the corner of Dogwood Knoll Street and Fairground Road from C-2, Shopping Center District to R-7, Residential 7 District, as presented. Page 1 of 1 CITY OF DUNN PANNING AND INSPECTIONS 102 N Powell Ave • PO Box 1065 - Dunn, North Carolina 28335 (910) 230-3505 • CityofDunn.org Case #: RZ-25-04 Meeting Date: January 6, 2026 PIN: 1517-62-6194.000, 1517-62-8128.000, 1517-61-6938.0001 1517-62-8110.000, 1517-61-8939.000, 1517-61-7939.000 Applicant: Cape Hatteras Partners, LLC Owner: Cape Hatteras Partners, LLC Location: Two unaddressed parcels on Dogwood Knoll Street and four unaddressed parcels on Fairground Road REQUEST: The applicant is requesting a zoning map amendment to rezone six parcels along Fairground Road and Dogwood Knoll Street. The request seeks to change the zoning from the Shopping Center (C-2) district to the Residential 7 (R- 7) district. The subject properties are shown in yellow below. 2 V&re communi� 6 yins� ZONING: 011111 11111 4 17GIWAS Acreage: Existing Use: Current Zoning: Proposed Zoning: 1.9 acres Vacant land C-2 R-7 SURROUNDING PROPERTY DATA: Direction Zoning Existing Use North Residential 10 (R-10) Residential South Residential 10 (R-10) and Shopping Center (C-2) Residential & Vacant West Residential 10 (R-10) Residential East Highway Commercial (C-3) Commercial shopping center LAND USE PLAN CONSISTENCY: This rezoning request is consistent with the City of Dunn Land Use Plan. The Future Land Use Map designates these properties for Gateways & Corridors. The Gateways & Corridors Character Area includes areas of Dunn that are adjacent to downtown and several prominent entrances to the heart of the City. May of these areas were identified in the City's Strategic Vision Plan as opportunities for improvement and/or redevelopment. Development policies should focus on context -sensitive design standards, a thoughtful blending of uses, adaptive reuse of existing structures, multi -modal access, and creative solutions to development challenges. Pedestrian -scale development, connectivity, and public gathering spaces should support retail, offices, restaurants, breweries, accommodations, and entertainment spaces, as well as single-family, multi- family, and mixed residential uses. Uses permitted in the R-7 zoning district are compatible with the City's vision for Gateways & Corridors areas. The subject properties are located within an existing residential area which is located directly opposite of an existing commercial development. The proposed rezoning to the R-7 district will limit the permitted uses to those which are in keeping with the existing residential development. It will also keep commercial development on the opposite side of North Ellis Avenue rather than encouraging higher intensity commercial development to encroach upon an existing residential development. Relevant goals and objectives detailed in the Land Use Plan: Policy 1: Manage future growth and encourage quality development through implementation of the Strategic Vision Plan, the Land Use Plan, the Unified Development Ordinance (UDO), and other plans and regulations adopted by the City Council. • 1.2: Support residential development at varying densities based on the Future Land Use Map, associated character area descriptions, and other relevant plans. • 1.5: Encourage residential growth development in areas already served by utilities and services. Policy 6: Encourage a range of housing types based on the availability of infrastructure, proximity to services and amenities, and compatibility with existing development as described in the Future Land Use Map. • 6.2: Within larger developments, encourage higher density housing types be located in those areas with closest proximity to services, amenities, and infrastructure. RECOMMENDATION: Staff recommend approval of RZ-25-04 based on the requested zoning's consistency with the Dunn Land Use Plan. The uses permitted in the Residential 7 (R-7) zoning district are compatible with the City's vision for areas designated as Gateway & Corridor areas on the Future Land Use Map. Uses permitted in R-7 are compatible with the City's vision for this character area, and properties adjacent to the subject properties are also zoned R-7. CONSIDERATIONS: • The Planning Board shall make a recommendation to approve or deny this rezoning request. • This rezoning request is conventional, not conditional, so no conditions of approval may be imposed. • Due to this rezoning request being conventional, all permitted uses in the requested zoning district should be considered. ATTACHMENTS: 1. Rezoning Application For Planning Department Use Only C IT Y O� Case Number 4Z2 - 2 5- p Date Received 57 Fee DUNN Board Meeting � . p � NORTH CAROLINh g City Council Meeting REZONING APPLICATION OWNERSHIP INFORMATION: Applicant: Cape Hatteras Partners, LLC Applicant's Legal Interest in Property: Owner Applicant's Address: 919 524 8860 Phone Number: ( ) - PO Box 915 Benson, NC 27504 Property Owner: Cape Hatteras Partners, LLC Owner's Address: PO Box 915 Benson, NC 27504 10/25/2024 4257 2852 Date Property Acquired: Deed Reference: Book Page _ 1517 62 6194 1517-62-8128.000 1517-62-8110.00 P14= 010 Tax PIN Number: _ .000 1517-61-6938.00 1517-61-8939.00 1.9 227 aM 1517-61-7939,00 Size (Sq. Ft. or Acres) Street Frontage (ft) _; 0/0 0� Location/Address: Dogwood Knoll St / Fairground Rd Attach a legal description (Metes and Bounds Description) of the area requested. ZONING REQUEST: A. Existing Zoning: C-2 (See attached table) Requested Zoning: R-7 B. Land Uses: Vacant land 1. Existing land uses on property to be rezoned: 2. Existing or proposed land uses on all adjoining properties: North R-10 South R-10 / C-2 East Hwy Comm West R-10 2 C. Statement of Justification: (City Code, Article 11 of Section 22) The proposed zone shall be greater than three (3) acres of land or... if smaller, the property adjoins and is contiguous to two (2) zoning districts after the proposed change. Attach a statement justifying the requested map change based upon the following: 1) The amendment, if small scale, is reasonable based upon surrounding conditions. 2) The impact of zoning is in the public interest and does not significantly harm the surrounding properties. 3) The amendment is warranted due to changed or changing conditions in the area. 4) The amendment achieves the purpose and is consistent with the Land Use Plan. The proposed rezoning is consistent with the residential zoning that surrounds the subject property. Currently, the majority (5 of 6 lots) of lots are zoned commercial which if developed commercially would likely be detrimental to the surrounding residential neighborhood. A residential use is likely most preferred by the neighbors and the town. This rezoning would clean up a mixed commercial zoning that was likely put in place many years ago when conditions were different and possibly before the surrounding residential community was built. Medium density residential is consistent with the land use plan and the current residential neighborhood. OWNER'S CERTIFICATION I (We) do herby certify that: I am (We are) the owners or authorized agent of the property described in this application for rezoning and have attached copies of deed, title reports or other documents as proof of ownership. I (We) have read the rezoning procedures, requirements and have truthfully completed this application for rezoning. I (We) understand that the filing fees are non-refundable; the process to review rezoning cases includes public hearings and review by both the Planning board and the City Council. I (We) understand that any action to approve our request is at the discretion of the Planning Board and the City Council and additional requirements may be imposed as determined necessary. 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I I i i'e - CO"FICAIE OF OWMIO W AND D EWCAI1M - 1 Nolor CERT:'Y ANT 1 AM IK OALRER OF IW PROPERTY RKPIM AAD G.YJIED ►ERFOK 0" 1S LOCA MD N Alf >L SWAS VN AA=vim or ADOPT PPLL,w�or aum AND ImT r IrPf Aff O KE AND fAIKAH RNe i t�C OgRN, NC 2al33 DA1r arAlsoF 3sRAl ,,.,••�",•,,,.,, MNOR SUBDIVISION PLAT vRaErr er !arid serve �AR�r`"•'-°`4° chandl Ong :} �"'y S4 WARREN RE 7Y, t{C PRO�ERnEs " 83 Adams Point Drive, Gamer, North Caroku, 2n29 � � Dow Ow Phone 919 2919163 SW AM SCALE: I' 66' q,N �`�, SCAEi !-. 60' OAlE 5£ 10. 1D2o I O° 1 •a.wH p 30 w 120 1lA1Eg is-�sn AM9US o WOO P HARF&W CMWTY N NTH CA"LNA CITY OF DUNN NORTH CAROLINA NAe,me- w~ew4 Xef 4swl Work Session , January 13, 2026 Agenda Item(s): Termination of Contract to Sell Real Property - Stoney Run Property Presenter(s): Justin Hembree, City Manager Responsible Staff: Justin Hembree, City Manager Action Item: Yes Attachment(s): 1) Termination of Contract to Sell Real Property Background The City of Dunn received official notification on Wednesday, December 10, 2025 that NVR will no longer be moving forward with this project and will be terminating the contract. The City Attorney has advised that since the City Council approved the original agreement, they will need to approve this one as well. Budget Impact None Staff Recommendation(s) Approval of Termination of Contract to Sell Real Property. Suggested Motion(s) Motion to terminate the January 15, 2025, contract between the City and NVR, Inc., for the sale of real property and to authorize the City Manager to execute the attached Termination of Contract to Sell Real Property. Page 1 of 1 TERMINATION of CONTRACT to SELL REAL PROPERTY CITY OF DUNN THIS TERMINATION AGREEMENT ("Termination Agreement") is made as of the Effective Date (as hereinafter defined) by and between CITY OF DUNN, a municipal corporation organized under the laws of the state of North Carolina ("Seller"), and NVR, INC., a Virginia corporation ("Purchaser"). WHEREAS, Seller and Purchaser entered into an Assignable Real Estate Sales Contract effective January 15, 2025 (the "Contract") whereby Seller agreed to sell and Purchaser agreed to purchase approximately 19.68 acres of real property located in Harnett County, North Carolina, identified as Parcel ID Number 02151720110025, on the Property described therein; and WHEREAS, Seller and Purchaser now wish to terminate the Contract pursuant to the terms and conditions of this Termination Agreement, all as more fully set forth herein. NOW, THEREFORE, in consideration of the mutual agreements of this Termination Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: l . The foregoing recitals are hereby incorporated herein in full by this reference. 2. All capitalized terms used herein which are not specifically defined shall have the meanings provided in the Contract. 3. Seller shall retain the tendered Deposit in the amount of Ten Thousand Dollars ($12,500.00), as liquidated damages not as a penalty and as its sole and exclusive remedy. 4. Upon the Effective Date of this Termination Agreement, the Contract shall be terminated and the parties relieved of further liability thereunder. 5. Each party, for itself and its joint and several predecessors, heirs, executors, successors, subrogees and assigns hereby unconditionally releases the other party, together with any and all of its parent companies, subsidiaries, affiliated and related companies, predecessors, successors, assigns, agents, principals, officers, directors, suppliers, contractors, employees and attorneys of and from the terms of the referenced Contract, together with any and all other claims, actions and causes of action of whatsoever kind or nature at law or in equity based in whole or in part upon facts which have occurred in fact, whether known or unknown, prior to the date of this Termination Agreement. Nothing in this Termination Agreement shall act to release the undersigned parties in regard to: (i) the terms of this Termination Agreement; and (ii) transactions and/or occurrences occurring entirely in the future. 6. This Termination Agreement shall be binding upon and shall inure to the benefit of the parties hereto and to their respective, successors and assigns, and shall be binding upon all RLH_115845\Dunn City Property 148\Termination Agreement (LN4K) 12-9-25\49060303vl Docusign Envelope ID: 391311C4C-DFC8-43ED-B05E-648F1EA336A4 employees, partners, members, officers, directors, shareholders, affiliates, subsidiaries, corporate parents, and any other person or entity acting or purporting to act on the behalf of either party hereto. 7. This Termination Agreement and all transactions hereunder shall be governed by and construed in accordance with the laws of the jurisdiction in which the Property is located, without regard to conflicts of laws principles. 8. This Termination Agreement constitutes the entire agreement between the parties pertaining to the subject matter hereof and supersedes all other prior and/or contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, of the parties, and there are no other agreements between the parties in connection with the subject matter hereof except as specifically set forth herein. Any waiver of or modification or amendment to this Termination Agreement shall not be binding unless set forth in an instrument executed by all of the parties hereto, and no course of conduct by either party or among the parties shall be deemed to amend the terms and conditions hereof except if such is reduced to writing and executed by all parties hereto. No waiver of any provision of this Termination Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver unless otherwise specifically provided. 9. This Termination Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute one and the same agreement. This Termination Agreement shall not be binding against any party hereto, however, until the same has been executed by each and every party to this Termination Agreement. 10. This Termination Agreement shall be effective on the date last signed (the "Effective Date"). In addition, this Termination Agreement and any waiver or modification hereto will only be effective if signed by the Area President of Purchaser or its designee, and at least two (2) other officers of Purchaser. [SIGNATURES APPEAR ON THE FOLLOWING PAGE] 0a RLH 115845\Dunn City Property 148\Termination Agreement (LMK) 12-9-25 EXECUTION\49060303v2 Docusign Envelope ID: 391311 C4C-DFC8-43ED-B05E-648F1 EA336A4 The parties have set their hands and seals to this Termination Agreement as of the date written below each signature. SELLER: THE CITY OF DUNN By:_ Name: Title: Date: PURCHASER: NVR, INC., a Virginia corporation Signed by: By: PavJ L►In.f�kl Name: �M' ffiinger Title: Area President Date: 12/15/2025 DocuSlgned by: By: [ Attsswwyx Name: Menger Title: Vice President and Regional Manager Date: 12/15/2025 Signed by: B y : Name: 25"ITreMew Title: Vice President and Division Manager Date: 12/15/2025 DocuSigned by: Name: YMFOiftdtke Title: Vice President of Regional Land Operations Date: 12/15/2025 3 RLH_115845\Dunn City Property 148\Termination Agreement (LMK) 12-9-25 EXECUTION\49060303v2 CITY OF � DUNN NORTH CAROLINA G�e eswo� 6e#'.s/ Work Session, January 13, 2026 Agenda Item(s): FY25 Audit Contract Amendment Presenter(s): Cary McNallan - Finance Director Responsible Staff: Cary McNallan - Finance Director Action Item: Yes Attachment(s): FY25 Audit Contract Amendment Resolution Background On February 25, 2025, the City Council approved a FY25 Audit Contract with Thompson Price Scott Adams & Company (TPSA). The contract for FY25 auditing services and financial preparation was $36,000 plus $3,000 for each single audit that was required, up to a maximum charge of $45,000. Upon conclusion of the FY25 Audit, the required single audits numbered four. The City also had four new funds that were included in the report. The additional costs for these services are $4,000, bringing the total contract price to $49,000. All independent audit contracts and amendments must be approved by the staff of the Local Government Commission. Staff Recommendation(s) Amend the FY25 Audit Contract with TPSA to $49,000. Budget Impact The additional expense will be funded by the existing budget. Suggested Motion(s) Motion to approve the attached resolution amending the FY25 Audit Contract with TPSA and authorize the Mayor and City Manager to execute the required documents. Page 1 of 1 CITY OF �W'0000 DIUNN RESOLUTION TO AMEND THE CONTRACT FOR INDEPENDENT AUDIT SERVICES FOR FISCAL YEAR ENDING JUNE 30, 2025 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUNN THAT: Section 1: A contract for the fiscal year ending June 30, 2025, was awarded on February 25, 2025, to Thompson, Price, Scott, Adams & Co., P.A. (TPSA) for a total cost not to exceed $36,000 to perform an independent audit and prepare annual financial statements. If a single audit is required, the cost of each single audit will be $3,000, up to a maximum fee of $9,000 for all required single audits. Section 2: It is necessary to amend the current contract from $45,000 to $49,000 to account for additional services for reporting and a required fourth single audit. Section 3: The Mayor and City Manager are authorized to execute the amendment for the Contract to Audit Accounts (form LGC-205 or equivalent). Section 4: This resolution is effective upon adoption by the City Council. Section 5: Within five (5) days after adoption of this resolution the City Clerk shall file a copy of this resolution with the Finance Officer. Adopted this 131h day of January 2026. ATTEST: Melissa R. Matti City Clerk William P. Elmore Jr. Mayor 'Mere communi� kTins! Work Session, January 13, 2026 Agenda Item(s): Acceptance of Monetary Donation to Police Department Presenter(s): Chief Nicholas Simmons Responsible Staff: Chief Nicholas Simmons Action Item: Yes Attachment(s): 1) Budget Amendment Purpose To Request acceptance of $250.00 monetary donation to Dunn Police Department. Background Every year, Tractor Supply selects a person or entity within the community and awards them as their hometown hero. This year Tractor Supply selected Dunn Police Department and Dunn EMS as their hometown heroes. An employee from Tractor Supply presented a donation to the Dunn Police Department in the amount of $250.00. The Dunn Police Department plans to use the funds to support the Police K9 Program. Budget Impact The overall FY26 General Fund budget will increase by $250.00. The funds will be appropriated to the K9 upkeep account (010-0510-5200). Staff Recommendation(s) Approval of accepting monetary donation and approving the budget amendment. Suggested Motion(s) Motion to accept the $250.00 monetary donation from Tractor Supply and approve the Budget Amendment as presented. Page 1 of 1 CITY OF DUNN BUDGET ORDINANCE AMENDMENT Department: Police Budget Amendment #: 15 FISCAL YEAR ENDING: 6/30/2026 Date: 1/13/2026 Appropriation Amount of Appropriation FUND Acct # LINE ITEM DESCRIPTION Before Amendment After Amendment Increase / (Decrease) Amendment General 010-0510-5200 K9 Upkeep 7,000.00 250.00 $ 7,250.00 EXPENDITURE TOTAL: 7,000.00 $ 250.00 $ 7,250.00 Appropriation Amount of Appropriation FUND Acct # LINE ITEM DESCRIPTION Before Amendment After Amendment Increase / (Decrease) Amendment General 010-0360-0100 Donations and gifts $ - $ 250.00 $ 250.00 REVENUE TOTAL: $ - $ 250.00 $ 250.00 CERTIFICATION: I certify this requested budget amendment was approved by the City Council on: City Manager: 1/13/2026 Finance Director: 1/13/2026 JUSTIFICATION: Appropriate a donation from Tractor Supply for their hometown hero program. FUNDING SOURCE: Donated funds CITY OF V DUNN � Wo� NORTH CAROLINA Work Session, January 13, 2026 Agenda Item(s): City Manager's Report Presenter(s): Justin Hembree, City Manager Responsible Staff: Justin Hembree, City Manager Action Item: No Attachment(s): None The City Manager will provide updates. Page 1 of 1 110 ICITY OF �WR-0000 DUNN NORTH CAROLINA G�e eo14o� 6egi"s l Work Session, January 13, 2026 Agenda Item(s): Updates Presenter(s): Justin Hembree, City Manager Responsible Staff: Justin Hembree, City Manager Action Item: No Attachment(s): None The City Manager will provide updates. Page 1 of 1