0225200512
MINUTES
CITY OF DUNN
DUNN, NORTH CAROLINA
The City Council of the City of Dunn held a Special• - all/Planning Meeting on Friday, February 25,
2005, from 9:00 a.m. — 5:00 p.m. in the Dunn Munic pal uil ding.
Council Present: Mayor J. Dal Snipes, Council'Members Buddy Maness, Bryan Galbreath, Billy
Tart, Billy R. Godwin, Jr. and Joggxx yt.
Council Absent: Mayor Pro -Tem Olds was absetif,`P used due to sickness
Staff Present: City Manager Michael Uskiewicil,44sistant City Manager/Public Works Director
Ronnie Autry, Human Resources /Safety Officer "Mb'ses Gallion, Building Inspector Mike Blackmon,
Fire Chief Austin Tew, Recreation Director Perry Hudson, City Planner Julie Reid, and City Clerk;
Debra G. West
Also Present: City Attorney P. Tilghman Pope, City Engineer Ed Powell, Daily Record Reporter
Lisa Farmer, Claudia Brown (State Preservation Office- Historic Districts), Rodney Swink (Main
Street Director with the N.C. Department of Commerce Division of Community Assistance), Jason
Epley (Senior Planner with the N.C. Department of Commerce Division of Community Assistance),
and Dale Holland (Holland Consulting Planners)
INVOCATION
Mayor Snipes opened the meeting at 9:00 a.m. and asked Council Member Billy Tart to give the
invocation. Afterwards, the pledge of allegiance was repeated.
City Manager Uskiewicz passed along information to the council with regard to the County-wide
Recreation Master Plan. He also advised council that he was awarded a scholarship in the amount of
$1200.00 toward the upcoming Public Executive Leadership Academy he will be attending over the next
several months at the Institute of Government in Chapel Hill.
Mayor Snipes made note that Mayor Pro -tem Olds is absent due to sickness and wished him a full recovery.
Mayor Snipes entertained a motion to go into closed session.
9:05 a.m. - Motion by Council Member Joey Tart, seconded by Council Member Buddy Maness to go into
closed session based upon N.C.G.S. 143.318 - pending litigation involving the City of Dunn and possible
acquisition of real property. Motion unanimously approved.
Closed session adjourned at 10:00 a.m. and council reconvened the Special Call/Planning meeting at
10:05 a.m.
No action taken during closed session.
Motion by Council Member Godwin, seconded by Council Member Galbreath to approve the minutes of
the closed session as recorded by City Attorney Pope. Motion unanimously approved.
CLAUDIA BROWN
STATE HISTORIC PRESERVATION OFFICE
Ms. Claudia Brown, Architectural Survey Coordinator with the State Historic Preservation Office spoke
about the National Register of Historic Places and Local Historic Districts.
In the year 2001, Harnett County received a matching grant to conduct an architectural survey of the
county. This project got underway in late 2002. Properties in the county were mapped out and files were
made about properties. Most files consisted of municipalities. Consultants identified properties as historic
places. These files will soon be available for review at local libraries. Some properties identified as
eligible for Historic designation in Dunn included: selected commercial/central business districts, selected
I�
13
residential areas south of the Business District, the former Dunn Hospital (Charles Parrish Nursing Center),
former armory (Civic Center), the old Harnett County Training School, and First Baptist Church.
Ms. Brown explained that should council wish to proceed with establishing a Historic Commission, the
Preservation Planner would need to meet with them.
Ms. Brown gave background information about the establishment of her office (N.C. State Historic
Preservation Office - Division of Archives and History).
Ms. Brown explained the two (2) types of designations and highlighted some of the differences:
1) National Registry Designation
The largest advantage is the state and federal tax credits
Income- producing property could apply for tax credits
✓ Private property owners may make changes, additions, etc. to their building listed on the
National Register using private resources. As long as the owner does not ask for tax
credits, there are not any restrictive requirements to the property owner, however if a tax
credit is considered, it must first be certified by the Secretary of the Interior.
• It promotes downtown redevelopment, giving property owners options for tax credits.
If more than 50% of the private property owners should object to National Registry
designation, the property or district would not be listed.
2) Local Designation (including Historic Districts and Landmarks and the Historic Preservation
Commission)
Local governments in NC may choose to use enabling legislation (N.C.G.S. 160A -400.1
through 160A- 400.14) that allows them to create historic preservation commissions and
to designate local historic districts and landmarks.
Local designation should not be confused with listing in the National Register of Historic
Places, which is a federal program administered by the state.
The local government can adopt an ordinance to create a historic preservation
commission. The local governing body selects members of the preservation commission.
■ The preservation commission's primary powers are recommending to the local governing
board properties to be designated as historic districts and landmarks and reviewing
applications from owners of designated landmarks and structures in historic districts who
plan to make changes to their properties.
• Landmark designations apply to individual buildings, structures, sites, areas or objects.
Historic district designation applies to entire neighborhoods or other areas that include
many historic properties.
■ Local Preservation Commission must have (3) members. The average membership is (7)
and should include realtors, contractors, architects, or local historians.
■ The Planning Board can serve as the Preservation Commission.
Ms. Brown stated that Landmarks and Districts could be listed on both the National and Local Designation;
however, she recommends starting out on the National Registry and if enough interest is shown, go forward
with Local Designation.
Ms. Brown explained the Certified Local Government (CLG) Program and how local governments and
preservation commissions benefit from being CLGs in becoming eligible to receive grant monies.
RODNEY SWINK
MAIN STREET DIRECTOR
NORTH CAROLINA DEPARTMENT OF COMMERCE
DIVISION OF COMMUNITY ASSISTANCE
Mr. Swink gave a slide presentation of various downtown areas beginning with the 1980's. Main Street
was created by the National Trust for Historic Preservation. Since the National Main Street Program was
created in 1980, Main Street communities have seen more than $789 million dollars in new investment and
experienced a net gain of 10,000 jobs in their downtowns.
iii
14
Main Street Four Point Approach:
1) Organization — Bringing people together to build on common interests- partnerships.
2) Promotion— Must be competitive to give you marketing advantage.
3) Design — Enhancing the visual quality of downtown.
4) Economic Restructuring — Strengthening the existing economic structure.
Main Street Principles:
Comprehensive
Action oriented
Incremental
Quality Focus
Long -term
Change
Partnership
Management
Builds on assets
Self -help
NC Main Street Communities are selected competively every (2) years. North Carolina continues to offer
the Main Street program to cities and towns throughout the state and provides direct assistance to 53 Main
Street communities.
The North Carolina Main Street Center (NCMSC) provides the following services:
• Program Guidance — NCMSC assists communities in developing a
program to manage the process of revitalization.
• Technical Assistance - NCMSC provides technical assistance in the
areas of organizational development, real estate development, market
analysis, business retention and creation, and design.
• Training — NCMSC offers training in the area of: the Main Street four -
point approach, real estate, business development, design and
organizational development.
• Network — Through participation in the Main Street program,
communities have access not only to other in -state programs but also to
over 1,600 communities across the country that are participating in
Main Street.
• Advocacy and Leadership — NCMSC functions as a clearinghouse for
ideas from which all can benefit.
Mr. Swink explained that it is possible that other communities will be selected for the Main Street Program
in the fall 2005. A Main Street manager must be in place before a community is selected. The salary for
this position can range from the upper 20's to low 40's depending upon experience.
12:30 p.m. - Mr. Dale Holland with Holland Consulting Planners arrived.
12:30 p.m. 1:30 p.m. — Break for Lunch
(Council Member Godwin left the meeting during the lunch break due to sickness)
1:30 p.m. — Mayor Snipes reconvened the special call/planning meeting.
DALE HOLLAND
HOLLAND CONSULTING PLANNERS
ANNEXATION
Mr. Dale Holland with Holland Consulting Planners gave a slide show presentation that showed the areas
for potential annexation.
Holland Consulting Planners did an annexation study for the City of Dunn four to five years ago. Some of
the same areas studied then did not qualify for state definition of urban areas at that time.
Mr. Holland explained that there are three methods of annexations: voluntary contiguous, voluntary
satellite, and involuntary contiguous. He stated that today, they will be primarily talking about involuntary
contiguous annexation.
i
15
Mr. Holland gave an overview of involuntary annexation. If any area is involuntarily annexed, it must be
contiguous. Also out of the whole area intended for annexation, 1/8 or 12.5% of the boundary line of that
area has to be contiguous to an existing corporate limit line. No portion of an area intended to annex can be
a part of another municipality. The areas must be developed to urban densities. The North Carolina
General Statutes now allow for a land bridge where there may be a connecting piece of land under certain
parameters that allows the City to skip from the main corporate line to pick up an area that is defined as an
urban area. He stated that the land bridge is very important for the City of Dunn with respect to the
potential annexation of the Highway 421 area.
The following areas were looked at for potential annexation:
Fairground Road
Erwin Road
Johnson Street
`✓ NC 55
Highway 421
Mr. Holland explained that under the urban density requirements, three areas would qualify for annexation.
Those (3) areas are:
• Highway 421 Area
• NC 55 Area
• Erwin Road Area
All of the areas above exceeded the 12.5% for being contiguous. The term urban densities means that at
least 60% of the total number of the tax parcels in an area considered for annexation, are used for
residential, commercial, industrial, institutional or governmental purposes and are subdivided into parcels
such that at least 60% of the total acreage would be 3 acres or less in size. This is the main qualifying
factor for annexation as well as meeting the 12.5% requirement for being contiguous.
Mr. Holland stated that just because an area qualifies for annexation, it does not mean that it is financially
beneficial for the City to annex the area.
Mr. Holland gave an overview of the qualifications of the three (3) potential areas to annex. He asked
what areas are reasonable to annex? He stated that if all (3) areas were annexed, it would add an additional
estimated 200 people in population to the City of Dunn. The breakdown includes: Highway 55 Area with
33 people, Erwin Road Area with 12 people and the Highway 421 Area with 155 people.
Mr. Holland explained that the revenues the City could expect from an annexation come from
ad valorem taxes, motor vehicle taxes, local government sales and use tax, intangible taxes, franchise taxes,
powell bill funds for street aid, ABC revenues, sanitation fees and water and sewer fees. There are no
precise ways to determine the exact amount of increased money as a result of an annexation. They must
use averages and project those to the forecast population.
Mr. Holland showed a breakdown of the three (3) proposed annexation areas with a summary of major
revenues projected for each area as follows:
Annexation Area Total Revenue
Highway 55 Area $12,833.80
Erwin Road Area $ 3,102.61
Highway 421 Area $147,213.27
Total Revenues Projected $163,149.68
if all (3) Areas Annexed
If all of these areas are annexed, the City must make expenditures for street maintenance, police protection,
fire protection, 911 service, parks and recreation service, library service, public works, planning and
inspections, water and sewer services. When an area is annexed, the City must provide full services to that
area equivalent to what is provided in the rest of the City.
Mr. Holland gave a summary breakdown of the three (3) proposed annexation areas with a summary of the
estimated expenditure for providing utilities (water and sewer) for each area as follows:
16
Annexation Area Estimationfor Providing Utilities
Highway 55 Area $ 565,000.00
Erwin Road Area $ .00
Highway 421 Area $2,863,000.00
Total Expenditures Projected
To provide utilities if
All (3) Areas Annexed $3,428,000.00
It would take forty-four (44) years for the City to recoup the investment of the Highway 55 Area and
nineteen (19) years to recoup the cost of the Highway 421 Area. A reasonable time for a municipality to
receive payback from an annexation is 7 -10 years.
Mr. Holland stated that the City could move ahead with the Erwin Road Area annexation. If the City waits .
for a couple of years, the Highway 421 Area may be doable. He recommended that the City wait to see if
other investors /developers /property owners will absorb some of the cost for infrastructure along this area,
taking the burden off the City of Dunn.
Mr. Holland stated that the Fairground Road Area might qualify in 1 -2 years. Development is rapidly
occurring in this area.
Mr. Holland spoke about the City extending their Extraterritorial Jurisdiction (ETJ). This is important to
accomplish future annexation areas and allows the City to have control of the surrounding area. If the ETJ
area is extended, the City must adopt an ordinance expressing that intent, must have a detailed map of the
proposed extensions, must have concurrence from the county to make the extension, all affected property
owners must be notified by mail and a public hearing must be held.
He explained that the ETJ boundaries should be the mid -point between two municipalities. He stated that
the ETJ boundary should follow natural or man -made lines.
Mr. Holland recommended that the City extend the ETJ boundary to the maximum geographic area
allowed.
Mr. Holland stated that the Johnson Street area would have to be a voluntary annexation area. It does not
meet the requirements of an urban area.
The Council brought out the fact that the present cost projections for revenues given today was based on
current tax rates and valuations as they are right now. Mr. Holland stated that five years from now there
may be more development to create higher tax revenues, however, the critical need is for the City to have
someone make the investment on Highway 421 to help pay the cost of infrastructure down the highway. )
There are deep lines in Highway 421, resulting in higher cost to provide this service.
City Engineer Ed Powell pointed out that the one thing that escalates the cost for extending water and
sewer utilities down Highway 421/Pope Road Area is it requires a major pumping station that would be
located half -way between Highway 421 and Pope Road on Warren Road.
Mr. Holland explained that once an area is annexed, the City has one (1) year in which to provide service to
the area.
The council had further discussion with Mr. Holland about annexation.
(10) Minute Break
(�
17
JASON EPLEY
SENIOR PLANNER
N.C. DEPARTMENT OF COMMERCE
DIVISION OF COMMUNITY ASSISTANCE
Jason Epley, Senior Planner with the N.C. Department of Commerce, Division of Community Assistance
gave a slide presentation of the current Dunn area and he showed computerized enhanced photos of how
areas in Dunn could look in the future.
Mr. Epley stated that a Land Use Plan is having a vision of how your city will grow. It is the foundation of
how your community will develop. As industry is recruited, appearance and development of the area are
considered factors.
Mr. Epley stated that he needs understanding from the community on how the citizens would like to see
their City grow.
Manager Uskiewicz stated that Mr. Epley needs feedback from the council concerning their desire for the
city's appearance.
Mayor Snipes stated that he is proud of Dunn, however, the entranceways into town and some downtown
areas could be enhanced.
Attorney Pope stated that Dunn needed minimal standards for landscaping and buffers in asphalt parking
lots.
Mr. Epley received feedback from the council with regard to their vision for Dunn.
A Planning/Visioning session will be held on Tuesday, March 15, 2005 at 6:30 p.m. at the Dunn Recreation
Center. This will be the second meeting held to develop the General Land Use Plan for the City of Dunn.
(10) Minute Break
DOWNTOWN REDEVELOPMENT
Mayor Snipes yielded to City Engineer Ed Powell and Manager Uskiewicz to talk about Downtown
Redevelopment and about property that was donated to the City of Dunn.
MCKAY HOUSE
Manager Uskiewicz stated that the McKay House was recently donated to the City of Dunn. An estimate to
renovate the house was submitted from Sundawg Renovations in the amount of $228,332.00. With council
concurrence, he plans to locate all of the offices out of the Library into the McKay House and well as
moving Administration Offices, Inspections, Human Resources, Planning/Zoning, and the City Clerk over
to the McKay house facility. This will allow the Police Department to expand their offices in the
Administration Building. This will also free up space in the Library.
Mr. Uskiewicz reminded the council, that during last year's budget retreat, the need for more office space
was discussed. He stated that employees are currently working in closets.
A slide show of the McKay house was shown to the council. This house has been vacant since 1982 and
the building is structurally sound. Inspector Blackmon gave an explanation for each slide presentation
shown, indicating any repairs that will need to be made. Some of the upgrades necessary include repairing
areas from water damage, rewiring the structure, plumbing upgrades, handicapped accessibility downstairs,
and cosmetic improvements.
Paving, landscaping, lighting and parking are not included in the renovation cost.
i
K
Mr. Uskiewicz included a payment schedule for the next ten (10) years to pay for the renovation of this
structure. Should Council prioritize this project in the 2005 -06 budget, it could take (6) months to
complete.
City Engineer Ed Powell also gave an overview of repairs that need to be made, adding that at the
suggestion of an architect in his firm, they should address the necessary repairs to be made to this structure
room by room. Mr. Powell stated that eligibility specifications to put this project out for bid could be
accomplished in thirty-days (30).
Mayor Snipes reminded the council that this building is on the National Registry of Historic Places and
they need to do everything they can to preserve the integrity and historic significance of this structure.
DENNING- SURLESPROPERTY
JOHNSON STREET
This property consisting of approximately 20 acres was recently donated to the City of Dunn. Mr.
Uskiewicz stated that this property can now be annexed into the City. This property has some natural
attributes making it attractive. There are some possibilities to have a natural walkway around the two
ponds. The other one -third of the property is buildable property. Discussion has been held to possibly
donate two to three lots to Habitat for Humanity with the understanding that a natural walking trail may be
behind these houses. There is enough property to make both of these uses happen and would be a benefit to
everyone.
Mr. Uskiewicz suggested partnering with youth groups such as scout troops to improve the trail. He asked
for feedback from the Council with regard to this project. Council Member Galbreath stated that it would
be great to donate three lots to Habitat for Humanity.
Mayor Snipes asked Mr. Uskiewicz if any preliminary numbers have been put together as it relates to the
clean -up and nature trail. Mr. Uskiewicz responded no, but stated that the City maintains the existing
sewer manholes located on this property and it would not take much to accomplish this project with City
crews and partnerships.
Mayor Snipes encouraged the Council to visit the site while the vegetation is low and evaluate it before the
next budget workshop.
DOWNTOWN REDEVELOPMENT
The Council was shown a slide presentation of the downtown development map that showed the
revitalization and target areas.
Manager Uskiewicz reminded the Council that they paid $5000 for a plan of action to tell them what the
infrastructure needs are. The infrastructure needs are serious. The figure given was in the 2 to 2.3 million -
dollar range for the water, sewer and roadwork. The figure given to Council was (five) 5 million dollars,
which includes the cost of putting the electrical facilities underground.
Mr. Uskiewicz stated that in a meeting with Mr. Tom Underhill of Progress Energy, the design and
engineering of the electrical wiring would be done at no cost to the City of Dunn. He added that City
Engineer Ed Powell will address the Council about revitalizing the downtown business district.
In referring to the slide presentation of the downtown development map, Mr. Powell pointed out the
revitalization area that includes Ellis Ave. to Washington Ave. and Pearsall St. to Cleveland St. He also
pointed out the target area that involves Layton Ave. to Elm Ave. and Divine St. to Harnett St. Presently,
they are talking about redevelopment in the downtown area of Broad Street and one block north and south
each way.
Mr. Powell stated that the cost to install water and sewer lines, streets, sidewalks, curbs and gutters in the
downtown area is 2.8 million. He added that in meeting with the federal branch of USDA, the City should
be eligible for a low interest loan.
r'�
19
Mr. Uskiewicz stated that enclosed in the council's packet is an amortization schedule financing five (5)
million dollars at 4.50% annual rate with forty (40) annual yearly payments of $271,715.73. He added that
this money would be coming out of both the water and sewer fund and general fund. He stated that they
are looking at other funding mechanisms, including assistance from the North Carolina Department of
Transportation (DOT) since Highway 421 will be affected.
Mr. Uskiewicz discussed some of the possible financing options including a citywide bond referendum, tax
increment finance district within the development area, and special assessments for the Downtown District.
Mr. Uskiewicz asked that the Council place $160,000 in the FY 2005 -06 budget for design and engineering
of this project. He stated that whatever type of funding mechanism is used, they need public input.
Mr. Uskiewicz stated that the Council should plan to repair the infrastructure needs downtown before it
fails. They need to plan to fix it rather than reacting when it fails.
Mayor Snipes stated that it is important for the citizens and Council to know that this involves
infrastructure needs downtown and not beautification. He asked Mr. Powell how critical are these
infrastructure needs.
Mr. Powell responded that the oldest part of the City's infrastructure is located downtown. The water and
sewer pipe system located in the City's downtown district was installed eighty-years (80) plus, between
1900 and 1920. He stated that there are serious leakage problems in the sewer lines and some of the water
lines and valves are not good. Some of the hydrants do not work and some of the water lines are
undersized to provide proper fire protection.
Mr. Uskiewicz and Mr. Powell stated that while improving the infrastructure needs, why not go ahead with
the complete design while the project is being accomplished? The entire project would include buried
power lines, tree plantings, stop lights, street lights, and brick pavers in addition to the infrastructure work.
The Council discussed the cost of this project and the type of debt it will impose for forty-years (40) if it is
approved.
Mr. Uskiewicz encouraged feedback from the public should Council decide to move forward with this
project.
Mr. Uskiewicz stated that additional budget workshops will be held in May
RECREATION CENTER
NAMING RIGHTS
This item of business was deferred to a later date.
With no further business to discuss, the meeting was adjourned at 5:00 p.m.
wT � J. D ipes
Mayor
mod. W, rrrrr� /t A� H'13a
Debra G. West
City Clerk