Quasi-Judicial Zoning Decisions and Property Values: Whose Opinion Counts?

How many times have you been to a public hearing and heard opponents to a particular zoning proposal say that it will cause the values of their property to decline? The impact on property values is a theme that runs through most zoning decisions. Developers want to create value in their own real property and are wary of property use restrictions that have the opposite result. Owners of neighboring property sometimes benefit from nearby development because a rising tide of property values elsewhere may lift the boats of neighbors as well. Often, however, there is a tendency for neighbors to think that development projects on other people’s land will have negative, perhaps unintended, consequences for the use and value of one’s own land. But does the opinion of a lay person on such matters count in a quasi-judicial forum? This blog concerns the ability of property owners to offer legally competent opinions about the impact of such zoning decisions on their own property. Read more »

Financing Capital Projects—Part I: “Saving” through Fund Balance and Capital Reserve Funds

UPDATE August 2013: For more information on capital reserve funds, click here.

Blight City has fallen on hard times. Its population has declined significantly since the 1990s, due in large part to the shuttering of two large manufacturing plants. Emblematic of the city’s decline is its central downtown area. Once a vibrant community center, it is now comprised mainly of run-down, vacant buildings. Recently, however, a mid-sized micro-brewed root beer company purchased one of the old manufacturing plants (located just outside the city’s downtown) and began operations. It employs 200 people and plans to double its workforce over the next two years. The company wants to capitalize on a recent resurgence in root beer “connoisseurs” by expanding the plant to include a tasting facility. And the company has expressed interest in opening a restaurant and root beer bar in the city’s downtown. City leaders want to support the company’s efforts. They view the company’s investment in the city as a cornerstone for the city’s resurgence.

In fact, the root beer company’s recent investment in the city has sparked the interest of at least one developer. She has approached city officials about plans to help revitalize downtown. The developer intends to purchase several of the vacant buildings and refurbish them to attract a mix of small commercial entities, restaurants, bars, and residential tenants. Both the root beer company and the developer have requested (among other incentives) that the city invest in some infrastructure improvements and upgrades in the central downtown area to complement the private development. Specifically, the private entities would like the city to make road improvements, widen the sidewalks, install street lights, upgrade water and sewer lines, and demolish a city-owned structure to construct a parking lot.

Assuming that the city councilmembers are willing to make these public infrastructure investments, there are several available funding options, which fall into five general categories: (1) Current Revenues; (2) Savings; (3) Grants/Donations/Partnerships; (4) Special Levies; and (5) Borrowing Money. This is the first in a series of posts discussing these funding options. It focuses on “Savings”—describing two ways in which the city may accumulate revenues over time to fund a portion or all of the costs of these (and other) capital projects and assets. Read more »

Confidentiality of Applicants’ Names

Here’s an idea that many people in local government in North Carolina cling to:  the names of applicants for governmental jobs are confidential.  It’s a very handy idea.  It allows a manager in a small county to apply for the manager’s job in a large county without letting the cat out of the bag too soon.  It allows the board of trustees of the community college to consider all applicants for the open position of president without having the newspaper second-guessing them.  In short, it allows units of local government to conduct job searches out of the public eye, like private employers.

It’s a very handy idea.  But just how true is it?  For some local government employers, the answer is not as straightforward as we might wish. Read more »

A Book for Your Bosses

We here at the School of Government are really good at pumping out 400+-page tomes that examine every possible legal detail of tax collection, zoning, public records and other topics near and dear to the hearts of local government employees.

As helpful as these treatises can be, they don’t do much at all for one important audience: elected officials.  Few county commissioners or city councilpersons will have the time or interest to digest several hundred pages on one topic.

That’s when it’s time to turn to our Board Builders series.   Read more »

Local Transportation Planning Groups Now Covered under the State Ethics Act – What Does This Mean For Them?

UPDATE: NEW LEGISLATION (SB411) WENT INTO EFFECT ON JUNE 19, 2013, SIGNIFICANTLY CHANGING THE ETHICS REQUIREMENTS FOR MPOs AND RPOs.  CLICK HERE FOR A NEW BLOG POST OUTLINES THESE NEW REQUIREMENTS.

During the recent legislative session, the General Assembly designated RPOs and MPOs as “boards” for purposes of GS Chapter 138A (S.L. 2012-142, Sec. 24.16).  If you are a local elected official or employee and don’t know what this means (or don’t think it’s relevant to you), keep reading.  The coverage of RPOs and MPOs under the State Ethics Act (Chapter 138A) is significant not only for those who serve on these organizations and thus are impacted directly, but also for local governments in general because it is the first time the General Assembly has categorically included a group of local entities under the ethics requirements and prohibitions that apply to state officials.  Read more »

Recent Developments in Organization and Governance of Local Human Services Agencies

UPDATE September 2013: For more recent information on this topic, click here.

Once H438 (S.L. 2012-126) became law on June 29, 2012, counties had some new options available for organizing and governing their human services agencies (see earlier posts here and here). During a recent webinar, Jill Moore and I described the new law in some detail and responded to some of the questions that have been coming up. If you missed it and are interested, access to a free on-demand version of the program is available here. Several counties have been publicly discussing the new authority and at least three boards of county commissioners have voted in favor of making some change. Which counties took action? What did they do?  Read on…

Read more »

Local government assistance for a real estate development project—without making a grant

Al Czervik is a real estate developer who has invested in several shopping malls and mixed-use developments across the Tar Heel state. He is planning a mixed use development called “Gopher Commons” in your community, but “in order to make the numbers work,” he claims that he needs local government assistance to address a “financing gap.” He wants the local government to provide him a cash grant to be paid out over five years, with the annual grant amount equivalent to 50% of the additional tax assessed as a result of the higher taxable value of the property upon completion. He hasn’t locked down any commercial tenants yet, so he can’t promise any jobs. He’s also not exactly sure what kinds of tenants might occupy the space, but he’s certain that the retail businesses will need to hire new employees.

The city council wants to support the project because it generally comports with the council’s vision for development in this area. But the council is not interested in offering grants to real estate developers. The claims about new jobs ring hollow, since the developer can’t promise any, and retail establishments generally don’t pay high wages. Besides, the council reasons, any new jobs in this development will likely come at the expense of retail establishments elsewhere in the community. There certainly is no interstate competition for this project—the developer can’t threaten to take his development elsewhere. The city attorney has raised concerns about the developer’s request right from the start. Is there a way for the council to offer support for this real estate development without offering a grant or other direct subsidy? Read more »