City ofl Mount Airy Council Chamber Regular Board Meeting Municipal Building May 1, 2025 300 South Main Street 6:00 pm Mount Airy, N.C. This Meeting will be held in the Council Chamber of the Mount. Airy Municipal Building and also virtually by viewing through the following Zoom link: ntps/ASVvcb.zom.tU/89825.3619 using password COMA if prompted. You may also view this meeting via Facebook Live by connecting to the City's Facebook page The City of Mount Airy, NC. Link will be posted on www.mountairyorg the day of the meeting. AGENDA Welcome and Call to Order. Mayor Cawley Invocation. Commissioner Vaughn Pledge of Allegiance.. Everyone Items for Discussion and Possible Action 1.) APPROVAL OF AGENDA: 2.) CONSENT AGENDA: The consent agenda is comprised of matters of routine business that do not require discussion by the Board. Items included on this agenda are indicated with an asterisk (*) and will all be considered with one motion by the Board. Should a Board member wish to remove an item from the consent agenda, that item will be considered in its listed place on the agenda. a) **Approval of Minutes: February 20, 2025 Regular Meeting b) **Resolution Making Appearance Commission Appointment: Resolution No. 2025-057 c) **Resolution Setting Public Hearing for Proposed Fiscal Year 2025-2026 Budget: Resolution No. 2025-058 d) **Budget Ordinance Amendment for Insurance Proceeds: Ordinance No. 2025-030 3.) PUBLIC HEARINGS: a) Request to Rezone Property Located at 0 Piedmont Triad West Drive from B-4 to M-1 CD b) Zoning Ordinance Amendments Regarding Flex Space Facilities c) Amendments to Development Conditions for the Piedmont Triad West Industrial Park 4.) SPECIAL RECOGNITIONS: a) Police Week Proclamation 5.) PRESENTATIONS: a) Duke Energy Project Update: Jimmy Flythe, Duke Energy NC b) MAD, Inc./Downtown WIFI Project Update: 6.) POBLIC FORUM: 7.) ITEMS REMOVED FROM CONSENT AGENDA: 8.) OLD BUSINESS: a) Budget Ordinance Amendment for Downtown WIFI Project: Ordinance No. 2025-031 9.) NEW BUSINESS: a) Ordinance Amending City of Mount Airy Zoning Ordinance Relating to Flex Space Facilities: Ordinance No. 2025-028 b) Ordinance to Rezone Property Located at 0 Piedmont Triad West Drive from B-4 to M-1 CD: Ordinance No. 2025-029 d) Resolution Approving Amendments to Development Conditions for the Piedmont Triad West Industrial Park: Resolution No. 2025-059 e) Resolution Opposing Changes to Local Planning and Zoning in House Bill 765: Resolution No. 2025- 060 f) City Manager to Present Proposed FY 2025-2026 Budget 10.) OTHER BUSINESS: 11.) REMARKS BY OFFICIALS: a. City Council b. City Manager C. City Attorney 12.) CLARIFICATION/REBUTTAL BY MAYOR AND CIT'Y COUNCIL: 13.) CLOSED SESSION: a) Pursuant to NCGS 143.318.11(a)4q) Economic Development 14.) ADJOURNMENT: MOUNT AIRY, NORTH CAROLINA REGULAR MEETING MINUTES February 20, 2025 MEMBERS PRESENT: Mayor Jon Cawley, Commissioners Chad Hutchens, David Hall, Calvin Vaughn, Deborah Cochran, and Phil Thacker. Mayor Cawley welcomed everyone and called the meeting to order. APPROVAL OF AGENDA: Commissioner Thacker made a motion to approve the Agenda and it was passed unanimously. CONSENT AGENDA: On motion by Commissioner Hutchens and passed unanimously, the following items were approved by way of Consent Agenda: a) APPROVAL OF JANUARY 16. 2025 MINUTES b) RESOLUTION 2025-0A0-RESOLUTION MAKING HOUSING AUTHORITY REAPPOINTMENT: RESOLUTION NUMBER 2025-040 CERTIFICATE OF REAPPOINTMENT OF COMMISSIONER OF THE HOUSING AUTHORITY OF THE TOWN OF MOUNT AIRY, NORTH CAROLINA WHEREAS, the Housing Authority of the Town of Mount Airy has heretofore been duly organized pursuant to the North Carolina Housing Authorities Law, as amended; and WHEREAS, the term of Dennis Mitchell as a Commissioner will expire February 16, 2025: NOW, THEREFORE, pursuant to the North Carolina Housing Authorities Law, as amended, by virtue of my office as Mayor, I hereby reappoint Dennis Mitchell to serve as Commissioner for another five-year term ending February 16, 2030. IN WITNESS WHEREOF, I have hereunto signed my name as Mayor of the City of Mount Airy, and caused the official seal of the City of Mount Airy to be affixed hereto this the 20th day of] February, 2025. c) RESOLUTION 025.0A1-RESOLUTION APPROVING MARTIN STARNES AND ASSOCIATES, CPAS. P.A.-AUDIT CONTRACT: Resolution Number 2025-041 WHEREAS the Board of Commissioners of the City of Mount Airy desires to engage the services of Martin Starnes & Associates, CPAS, P.A. to perform the audit of the financial statements for the year ending June 30, 2025; and 1 WHEREAS Martin Starnes & Associates, CPAS, P.A. has submitted an engagement letter and audit contract consistent with the terms and conditions of their proposal to audit each of the five years ended June 30, 2025; and NOW, THEREFORE BE IT RESOLVED that the Mayor of the City of Mount Airy is hereby authorized to execute a contract with Martin Starnes & Associates, CPAS, P.A. to perform said audit for a fee of $37,130. Adopted this 20th day of February, 2025. d) ORDINANCE 2025-021-BUDGET ORDINANCE AMENDMENT FOR INSURANCE PROCEEDS: ORDINANCE NUMBER 2025-021 BUDGET ORDINANCE AMENDMENT WHEREAS the City of Mount Airy adopted the 2024-25 budget on June 6, 2024; AND WHEREAS the City of Mount Airy has received insurance proceeds to repair vehicle damage for public works and police department; AND WHEREAS it is necessary to amend the budget ordinance in order to appropriate these funds in order make the necessary repairs to the vehicles; AND WHEREAS General Statute 159-15 of the North Carolina Government Fiscal Control Act provides authority to amend a current municipal budget; NOW, THEREFORE, be it ordained that authorization is hereby given to make the following adjustments: Increase (Decrease) Section 1. General Fund Appropriations Police 1,645 Public Works 11,407 13,052 Section 2. General Fund Revenue Estimates Miscellaneous Revenue 13,052 13,052 Adopted this 20th day of February, 2025. (end of consent agenda) PUBLIC HEARINGS a) Relocation of Farmers Market to Public Parking Lot Located on Virginia Street: Mayor Cawley declared the Public Hearing open. Amy Bryant, 609 Rock Hill Church Road mon-residentlbusiness owner): Spoke in favor of relocating the Farmers Market to the public parking lot located on Virginia Street. Mentioned she has spoken to several other local business owners along Main Street, all of 2 whom are in favor of the relocation. Also completed an anonymous survey distributing to Spencer Mill Lofts and Renfro Lofts-receiving 25 responses: 22 in favor of and 3 opposed. Cris Tadesse, 211 W. Church Street (city resident): Is a vendor with the Farmers Market. Spoke in favor of relocating the Farmers Market to the public parking lot located on Virginia Street. This move will give the opportunity to build and expand the market. Mary Nay, 656 Turkey Ford Road (non-resident): New manager for the Mount Airy Farmers Market. Spoke in favor of relocating the Farmers Market to the public parking lot located on Virginia Street. Mentioned Interworks is willing to facilitate entertainment, food trucks, and children's crafts for the Farmers Market. Mark Patterson, State Road (non-resident): Spoke in favor of relocating the Farmers Market to the public parking lot located on Virginia Street. Feels this will provide more shade, more room, and a safer environment. Nadene Patterson, State Road (non-resident): Owner of Bramble and Butterfly Farm and is a vendor at the Mount Airy Farmers Market. Spoke in favor of relocating the Farmers Market to the public parking lot located on Virginia Street. Feels this relocation will present an opportunity to rebrand and enhance community awareness. Cynthia Taylor, 909 Andover Street (city resident): Owner ofPages Books and Coffee. Spoke in favor of relocating the Farmers Market to the public parking lot located on Virginia Street. Feels it will increase accessibility for the local merchants and residents while drawing foot traffic into downtown. Kathy Gatos, 227 East Elm Street (city resident): Spoke in favor of relocating the Farmers Market to the public parking lot located on Virginia Street. Shirley Brinkley, 342 Pineview Drive (city resident): Doesn't think relocating the Farmers Market is a good idea. Feels it is off the beaten path and will not draw anyone. Martha Truskolaski, 731 North Main Street (city resident): Asked multiple questions and had some concerns for the Board to consider. How many vendors are anticipated in 2025? How many vendors have been approved? How many are approved local farmers selling agricultural products? How many are craft products? Will the entire parking lot be off limits for parking starting the evening before? Will vendors be parking their vehicles in the parking lot? Suggested a four way stop sign off Virginia Street onto Willow Street. Will they be able to park handicap vehicles during the market? During school field trips, where will they park their bus? Mentioned that Virginia Street is slated for water and sewer repairs this summer. Kim Carlisle, Elkin (non-resident): Spoke in favor of relocating the Farmers Market to the public parking lot located on Virginia Street. Feels this will generate more sales for the vendors. John Thompson, Dobson (non-resident): Spoke in favor of relocating the Farmers Market to the public parking lot located on Virginia Street. David Shirley, Pilot Mountain (non-resident): One of the larger produce growers in the County and works with the Farmers Market. Spoke in favor of relocating the Farmers Market to the public parking lot located on Virginia Street. Nora Walls non-resident): Spoke in favor of relocating the Farmers Market to the public parking lot located on Virginia Street. 3 Samantha Bristow, State Road (non-city resident): Participates in the Farmers Market as a produce/craft vendor. Spoke in favor of relocating the Farmers Market to the public parking lot located on Virginia Street. Seeing no other speakers, Mayor Cawley declared the Public Hearing closed. Mayor Cawley mentioned the City of Mount Airy supports the Farmers Market. Commissioner Cochran thanked those who came to speak at the public hearing and thanked the farmers for their contribution to the community. Supports the Farmers Market and wants to see it thrive. Commissioner Thacker thanked all who spoke during the public hearing. Thanked everyone for the information given to the Board sO they can make the best decision. Commissioner Vaughn asked the City Manager what the timeline is for the water and sewer line project for that area. Darren Lewis stated that the water and sewer lines would be replaced during the summer, which will be a challenge for business owners and Farmers Market. Mayor Cawley re-opened the Public Hearing for further comments. Mayor Cawley asked someone with the Farmers Market to answer Ms. Truskolaski's questions she raised during the Public Hearing-Cris Tadesse and Mary Nay answered those questions to the best of their abilities. Commissioner Vaughn said the City is supportive of the Farmers Market and wants to see it grow. There have been questions ofif this is the best location. Amy Bryant stated the Surry County Farmers Market had a board meeting to discuss several locations including the lots on Moore Avenue, Renfro Street, City Hall parking lot, and Virginia Street. They all agreed that the lot on Virginia Street would be the best location. They did discuss Market Street but because of the activities that happen on Fridays and Saturdays, the Farmers Market would be limited as to when to set up. Commissioner Vaughn asked who has jurisdiction over Market Street and what the process is should the City want to schedule something. Mayor Cawley stated the City has an agreement with MAD, Inc. to be the entertainment providers for Market Street. Commissioner Vaughn mentioned that from what he has seen, there are very few things happening on Market Street on Friday mornings. Cris Tadesse stated there were some concerns for Market Street because it is one-way with no room for growth. The Farmers Market wants a lot where they can have 40+ vendors. Their goal is to bring people to the Farmers Market and to spend the day downtown. Mayor Cawley declared the second Public Hearing closed. Mayor Cawley mentioned this item will be considered at a future meeting. He asked Commissioner Vaughn to schedule a meeting with the Farmers Market members, Police Chief, and Fire Chief to get resolution to the questions that were raised. PUBLIC FORUM Mayor Cawley declared the Public Forum open. Shirley Brinkley, 342 Pineview Drive (city resident): Asked the Board to reconsider lowering the tax rate. The Board represents the citizens. Her taxes will increase because of the 4 revaluation. She asks that they consider the people of Mount Airy who have to pay taxes. Asked the Board to consider a discount if citizens pay their property taxes before a certain date like the County does. John Pritchard, 128 Ridgecrest Drive (city resident): Attended the Strategic Planning Meetings and is opposed to the decision to leave the tax rate at $0.60 with no tax decrease. Doesn't think there is corruption in the City, but does feel there is a lot ofwaste. With no other speakers, Mayor Cawley declared the Public Forum closed. NEW BUSINESS a) Resolution 2025-042-Resolution Receiving Offer for Purchase of City-Owned Property and Authorizing Upset Bid Process: The City has received an offer from CAS Investments, LLC to purchase two City-owned parcels for a total price of $25,000. The parcels are located on East Pine Street across the road from Reeves Community Center. CAS Investments, LLC recently purchased the adjacent property and their vision is to combine all parcels to develop into residential. Commissioner Hutchens made a motion to approve Resolution 2025-042 and it was passed unanimously. RESOLUTION NUMBER 2025-042 RESOLUTION RECEIVING OFFER TO PURCHASE CITY-OWNED PROPERTY AND AUTHORIZING UPSET BID PROCESS (Two Parcels on East Pine Street) WHEREAS, the City of Mount Airy has received an offer to purchase two parcels owned by the City of Mount Airy located on East Pine Street (PIN 502012845918 and 502016843983); and WHEREAS, the offer for the purchase of the two City-owned parcels is $25,000.00, made by CAS Investments, LLC; and NOW, THEREFORE BE IT RESOLVED BY THE CITY OF MOUNT AIRY BOARD OF COMMISSIONERS MEETING IN OPEN SESSION THAT: Section 1. The Board of Commissioners does hereby accept the offer to purchase the two parcels located on East Pine Street and further instruct the City Clerk to advertise according to North Carolina General Statute 160A-269 for upset bids. Section 2. This procedure shall be repeated until no further qualifying upset bids are received, at which time the City Council may accept the offer and sell to the highest bidder. The City Council may, at any time, reject any and all of the offers. Section 3. This resolution shall become effective upon approval. Approved and adopted this the 20th day of February, 2025. 5 REMARKS BY OFFICIALS: Commissioner Vaughn: Thanked the City staff for their hard work preparing for the Strategic Planning Meetings. Attended a ribbon cutting last week for Mirta Services. The property revaluation is a sticker shock for the citizens and any reaction is understandable. It is mandated by NC General Statute. Mentioned there is an appeal process for those who feel their property revaluation isn't appropriate. If someone is turned down in the first appeal, there is a second appeal process. Mentioned to everyone there is also property tax relief for NC citizens. He and others are in the process to form a group to help educate people who are eligible for this property tax relief. This is a good benefit for the elderly and veterans. The group will be at the Senior Center setting up meetings for anyone who isn't aware of this service. Commissioner Hutchens: Enjoyed the Strategic Planning Meetings walking away with a lot of new information and knowledge. Has a greater respect for the City employees. Continues to advocate having an SRO at every Surry County School. Public Safety is a concern for him. There are some part-time fire department personnel who are only making $12.77/hour. This is unacceptable. The Board needs to look after all of the City employees, whether it is public works or public safety. The employees need a living wage to be able to make ends meet. Commissioner Hall: Echoes Commissioner Hutchens comments. During the retreat, it was stated that there are some employees making only $12.77/hour, which is a big concern. Concerned over things the City needs to do-streets, sidewalks, etc. that directly affect the appearance and safety of the City. Ran for office as a person for the citizens and will continue to always be a person for the citizens. The City employees are a key factor for Mount Airy's future-they need to be taken care of. Thanked Commissioner Vaughn for the information shared. Commissioner Cochran: Thanked everyone for their comments during the public hearing and public forum. Commissioner Thacker: Mentioned the Board learned a lot during the Strategic Planning Meetings. Wants to make sure those things discussed happen and the City is being a good steward with the tax dollars. Thanked the City staff who worked hard compiling the information and putting it all together for the meeting. It is very important and helpful to have that time to sit down together and discuss the needs of the City. Darren Lewis: Thanked the Board and staff for the Strategic Planning Meetings. There were a lot of good quality decisions made. City staff will continue to be good stewards of the tax payer's money and will continue to look for ways to makes Mount Airy a better place to live, work, visit and play. Hugh Campbell: Echoed the comments regarding the Strategic Planning Meetings. This one makes it his 23rd and over those years, the issues haven't changed that much. There are always difficult questions about money, taxes, fairness, and equity. The strength of the board is revealed in those negotiations. This board has been fabulous with good decisions being reached and relationships were strengthened, giving hope for the future. Mayor Cawley: Attended a ribbon cutting for ASTA America today. They have spent millions of dollars in Mount Airy and they are excited to become part of the community. Mentioned that he didn't bully this Board into voting on the tax rate during the Strategic Planning Meeting-he asked all five of them what they wanted to do. He encouraged them to decide sO the City Manager and staff will have time to work on the budget. For the record, this Board was voting yesterday to give the City Manager and staff direction on the tax rate-to keep it 6 as it is or lower it. The pandemic has caused inflation and the City has to pay increased costs like everyone else. ADJOURNMENT: On motion by Commissioner Hutchens and passed unanimously, the meeting was adjourned. Approved and adopted this the Ist day of May, 2025. Jon Cawley, Mayor ATTEST: Melissa N. Brame, City Clerk 7 RESOLUTION NUMBER 2025-057 RESOLUTION MAKING APPEARANCE COMMISSION APPOINTMENT WHEREAS, Darryl Wilson has resigned from the City of Mount Airy Appearance Commission; and WHEREAS, it is recommended to appoint Kendra Griffin to fill the vacant position created by Darryl Wilson: NOW, THEREFORE BE IT RESOLVED BY THE CITY OF MOUNT AIRY BOARD OF COMMISSIONERS MEETING IN OPEN SESSION THAT: Section 1. Kendra Griffin is hereby appointed to the Appearance Commission to fill the unexpired term of Darryl Wilson, which will expire September 30, 2025. Section 2. This resolution shall become effective upon approval. Approved and adopted this the Ist day of May, 2025. Jon Cawley, Mayor ATTEST: Melissa N. Brame, City Clerk Mount Airy Parks & Recreation Memo To: Nicki Brame Venable, City Clerk From: Peter Raymer, Parks & Recreation Director Date: 4/22/2025 Re: Appearance Commission Appointment The Appearance Commission nominates Kendra Griffin to fill the vacant spot on the Appearance Commission. The vacancy was created when Darryl Wilson resigned from the board due to his busy schedule. 1 RESOLUTION NUMBER 2025-058 RESOLUTION SETTING PUBLIC HEARING ON THE PROPOSED FISCAL YEAR 2025-2026 BUDGET WHEREAS, the proposed fiscal year 2025-2026 budget for the City of Mount Airy has been presented to the Board of Commissioners (Presented May 1, 2025) and the public is encouraged to visit the City of Mount Airy's website www.mountairy.org for public inspection; and WHEREAS, North Carolina General Statute 159-12 states that before adopting the budget ordinance, the board shall hold a public hearing at which time any persons who wish to be heard on the budget may make comments: NOW, THEREFORE BE IT RESOLVED BY THE CITY OF MOUNT AIRY BOARD OF COMMISSIONERS MEETING IN OPEN SESSION THAT: Section 1. The Board of Commissioners does hereby set a public hearing on the proposed fiscal year 2025-2026 budget for Thursday, May 15, 2025 at 6:00 pm and further authorizes the City Clerk to advertise said hearing. Section 2. The Mayor and City Clerk are authorized to execute all related documents. Section 3. This resolution shall become effective upon approval. Approved and adopted this the Ist day of May, 2025. Jon Cawley, Mayor ATTEST: Melissa N. Brame, City Clerk A25-010 ORDINANCE NUMBER 2025-030 BUDGET ORDINANCE AMENDMENT WHEREAS the City of Mount Airy adopted the 2024-25 budget on June 6, 2024; AND WHEREAS the City of Mount Airy has received insurance proceeds to repair vehicle and property damage for public works and police department; also, the City of Mount Airy has received reimbursement from NC Interlocal Risk Management for Soft Body Armor for the Police Department and equipment for the Fire Department, AND WHEREAS it is necessary to amend the budget ordinance in order to appropriate these funds in order to make the necessary repairs and reimburse the City for costs; also to show a correction to amendment A25-009; AND WHEREAS General Statute 159-15 of the North Carolina Government Fiscal Control Act provides authority to amend a current municipal budget; NOW, THEREFORE, be it ordained that authorization is hereby given to make the following adjustments: Increase (Decrease) Section 1. General Fund Appropriations Police 3,011 Fire 2,803 5,814 Section 2. General Fund Revenue Estimates Miscellaneous Revenue 5,814 5,814 Section 5 Capital Investment Fund Appropriations Debt Service (249,349) (249,349) Section 6. Capital Investment Fund Revenue Estimates Msçellaneous Revenue (249,349) (249,349) Section 9. Water and Sewe er Fund Appropriations Public Works 2,319 2,319 Section 10. Water and Sewe er Fund Revenue Estimates Miscellaneous Revenue 2,319 2,319 Adopted this 1st day of May, 2025. Mayor Attested: City Clerk RESOLUTION NUMBER 2025-051 RESOLUTION SETTING PUBLIC HEARING FOR REZONING REQUEST FOR TWO PARCELS LOCATED AT 0 PIEDMONT TRIAD WEST DRIVE FROM B-4 TO M-1 CD WHEREAS, the City of Mount Airy has been petitioned by Bayfront Development, LLC to rezone two parcels (total 4.76 acres) located at 0 Piedmont Triad West Drive from B- 4 (Highway Business) to M-1 CD (Industrial-Conditional Use); and WHEREAS, the Tax Identification Numbers for said parcels are 5919-00-70-1535 and 5919-00-70-0962; and WHEREAS, the Planning Board of the City of Mount Airy has recommended approval of the request. to the Board of Commissioners: NOW, THEREFORE BE IT RESOLVED BY THE CITY OF MOUNT AIRY BOARD OF COMMISSIONERS MEETING IN OPEN SESSION THAT: Section 1. That a Public Hearing be scheduled for Thursday, May 1, 2025 at 6:00 pm to hear public comments on the above-mentioned request. Section 2. That notice of the Public Hearing shall be published in the Mount Airy News, a newspaper having general circulation in the City of Mount Airy, at least ten (10) days prior to the date of the Public Hearing. Section 3. This resolution shall become effective upon approval. Approved and adopted this the 17th day of April, 2025. Jon Cawléy, Mayoy/ ATTEST: WBaha FEB.2S, 1885 lelissa Mcline N. Brame, City Clerk CARC DL u RESOLUTION NUMBER 2025-055 RESOLUTION SETTING PUBLIC HEARING REGARDING CITY OF MOUNT AIRY ZONING ORDINANCE TEXT AMENDMENTS RELATING TO FLEX SPACE FACILITIES WHEREAS, the City of Mount Airy proposes to amend the City of Mount Airy Zoning Ordinance as follows: Article VI-Table of Permitted and Special Uses SR 44 Flex Space Facilities Flex space use shall comply with the following standards: E. Flex space uses shall meet the off-street parking requirement for this use type in Table 8.1.C.2, Minimum Off-Street Parking Requirements, not the individual types of uses within the flex space; F. The following activities shall not be included within a flex space use type: 1. Residential dwellings; 2. Religious institutions; 3. Adult-oriented businesses; 4. Restaurants or other eating establishments; 5. Bars, cocktail lounges, or private clubs; 6. Nightclubs or dance halls; 7. Heavy manufacturing uses; 8. Mini-storage or similar storage facility G. Outdoor storage or any business-related activity is permitted as an accessory use, subject to all applicable standards in this Ordinance; state and local laws, rules and regulations must be adhered to in the operation of such establishments. This ncludes regulations pertaining to advertisements and legality of products prescribed. H. Each land use operator and/or tenant must obtain a zoning permit from the City of Mount Airy Planming Department prior to occupation. Manufacturing and Industrial Uses USETYPES R-20 R-15 R-B R6 R-1 B-1 B2 B3 B4 H5 M-1 SR Electronics & electronicy product X X Fabricated valve&y wireproduct X X Fat8 & oil, animal X Fat8 & oll, plant X X Fish, canned, cured or frozen X Hexs Space Factilies X X 44 Flanre evering! fexrentr rametl * Y Article VII-Off Street Parking and Loading Flex Space Facilities 1 space per 500 square feet (entire building), subjeet to revision based upon specific tenant needs Article XV Section 15.4-Definitions Flex Space Facilities. Buildings designed to accommodate a combination of offices (e.g., service establishments and contractor's offices), wholesale establishments, warehousinglatihutim, industrial services, and light manufacturing uses, with the exact proportions of each use being subject to user needs over time. Uses are treated as principal uses and subject to the standards and limitations applicable to such uses- e.g., parking, and are included in the total gross floor area if located on the same lot. WHEREAS, the Planning Board of the City of Mount Airy has recommended approval of the request to the Board of Commissioners: NOW, THEREFORE BE IT RESOLVED BY THE CITY OF MOUNT AIRY BOARD OF COMMISSIONERS MEETING IN OPEN SESSION THAT: Section 1. That a Public Hearing be scheduled for Thursday, May 1, 2025 at 6:00 pm to hear public comments on the above-mentioned request. Section 2. That notice of the Public Hearing shall be published in the Mount Airy News, a newspaper having general circulation in the City of Mount Airy, at least ten (10) days prior to the date of the Public Hearing. Section 3. This resolution shall become effective upon approval. Approved and adopted this the 17th day of April, 2025. Jon Cavley, Major ATTEST: 885 Wiahe FEB.25, liow Melissa N. Brame, City Clerk H CA RESOLUTION NUMBER 2025-056 RESOLUTION SETTING PUBLIC HEARING REGARDING AMENDMENTS TO DEVELOPMENT CONDITIONS FOR PIEDMONT TRIAD WEST INDUSTRIAL PARK WHEREAS, the Development Conditions for the Piedmont Triad West Industrial Park were approved in 1998 and amended in 2005; and WHEREAS, staff is proposing text amendments to address inconsistences, trend updates, and elements of the PTW Development Conditions, which have not been enforced; and WHEREAS, the Planning Board of the City of Mount Airy has recommended approval of the request to the Board of Commissioners: NOW, THEREFORE BE IT RESOLVED BY THE CITY OF MOUNT AIRY BOARD OF COMMISSIONERS MEETING IN OPEN SESSION THAT: Section 1. That a Public Hearing be scheduled for Thursday, May 1, 2025 at 6:00 pm to hear public comments on the above-mentioned request. Section 2. That notice of the Public Hearing shall be published in the Mount Airy News, a newspaper having general circulation in the City of Mount Airy, at least ten (10) days prior to the date of the Public Hearing. Section 3. This resolution shall become effective upon approval. Approved and adopted this the 17th day of April, 2025. Jon Cavley, Mayuk ATTEST: Aahe FEB.2S 1885 Brame, City Clerk Wilops CAR NOTICE OF PUBLIC HEARING The City of Mount Airy Board of Commissioners wil hold a public hearing to receive public comment regarding the following items: 1. Request to rezone two parçels located at 0 Piedmont Triad West Drive from B-4 (Highway Business) to M-1 CD Andustraicomdiiona PIN Use) 5919-00-70-1535 & 5919- 00-70-0962 2. City of Mount Airy Zoning Ordinance Text AmerdmentsAdisingl Space facilities (buildings Flex designedt to accommodate muitiple principal uses) 3. Amendments to Development the Piedmont Çonditions Triad West for Industrial Park The public hearing will take place at the Reqular Meeting of the Board ol Cominissioners on May 1, 2025 at 6:00pm in the Council Chamber oft the Municipal Bullding. All interested persons are invited to participate. Inforation about attending the meetingi in person or virtually and public comment can be found at www.mountalry.org. PUBLISH: 4-19, 4-26-25 271109 A25-011 ORDINANCE NUMBER 2025-031 BUDGET ORDINANCE AMENDMENT WHEREAS the City of Mount Airy adopted the 2024-25 budget on June 6, 2024; AND WHEREAS the City of Mount Airy has agreed to pay a fourth of the downtown public Wi-Fi Project; AND WHEREAS Mount Airy Downtown share will be paid from Municipal Service District Fund; AND WHEREAS it is necessary to amend the budget ordinance in order to appropriate these funds in order to pay for this project; AND WHEREAS General Statute 159-15 of the North Carolina Government Fiscal Control Act provides authority to amend a current municipal budget; NOW, THEREFORE, be it ordained that authorization is hereby given to make the following adjustments: Increase (Decrease) Section 3. Municipal Service District Fund Appropriations Economic and Physical Development 10,152 10,152 Section 4. Municipal Service District Fund Revenue Estimates Appropriation of Fund Balance 10,152 10,152 Section 5 Capital Investment Fund Appropriations Administration 10,152 Appropriation to Fund Balance (10,152) Adopted this 1st day of May, 2025. Mayor Attested: City Clerk MOUNT AIRY DOWNTOWN, INC. Mount Airy Downtown, Inc. is a North Carolina Main Street organization committed to historic preservation-based community revitalization. DOWNTOWN) CED BDNE t INFORMATION MEMORANDUM Downtown Public WiFi Project Overview To: City Manager Lewis, Mayor Cawley, and City Commissioners From: Morgan Johnson, Mount Airy Downtown, Inc. Date: February 28, 2025 Mount Airy Downtown, Inc. (MAD, Inc.), in partnership with the Greater Mount Airy Chamber of Commerce, the Mount Airy Tourism Development Authority, and City staff, has been considering the merits and evaluating the technical aspects of providing free public WiFiin Downtown Mount Airy. This initiative aims to enhance the experience of visitors, support local businesses, and improve overall connectivity in our downtown district. Importance of Public WiFii in Downtown Downtown Mount Airy currently suffers from poor cell reception, making it difficult for visitors, residents, and businesses to stay connected. Issues such as dropped calls, slow data speeds, and difficulties using mobile payments or navigation apps are common. The installation of public WiFi will help resolve these challenges by providing a reliable internet connection for everyone. Project Overview The representatives oft the project partners have determined that the proposal from Surry Communications offers a cost-effective and much-needed solution. In summary: Provider: Surry Communications will oversee the installation and maintenance of the WiFi system Scope: The project includes a five-year equipment lease and service agreement Cost: The total cost (including equipment and installation, maintenance coverage and hardware replacement, and taxes and fees) is $40,607.64. Funding: Each of the four project partner organizations will contribute equally to cover the costs Next Steps Surry Communications will request email confirmations from the four project partners to proceed with equipment orders. The MAD, Inc. Board of Directors has already approved the proposal and, assuming the project moves forward, will request a budget amendment to move $10,151.91 from the unrestricted MSD fund balance to the MSD Other Services account 120-1091-59224-90, to fund our portion of the project. Surry Communications will send a quote and statement of work to each partner entity to obtain a purchase order and authorized signature. Once all approvals are received, installation will begin. The project partners will be invoiced upon project completion. This initiative aligns with the City's ongoing investment in downtown revitalization and economic development goals. We appreciate your continued support and look forward to making Downtown Mount Airy a more connected and accessible destination. Please let me know if you have any questions or need additional details. ORDINANCE NUMBER 2025-028 ORDINANCE AMENDING THE CITY OF MOUNT AIRY ZONING ORDINANCE Flex Space Facilities WHEREAS, the City of Mount Airy Planning staff has recommended amendments to the City of Mount Airy Zoning Ordinance relating to Flex Space Facilities: NOW, THEREFORE BE IT ORDAINED by the City of Mount Airy Board of Commissioners that the following Statement of Consistency is hereby adopted: Statement of Consistency: "The proposed amendments are consistent with the Land Use and Growth Management recommendation of the Mount Airy Comprehensive Plan in that it calls for more inclusive intensity-based zoning districts to allow a variety of compatible land uses. The amendments are also reasonable and in the public's interest. 92 BE IT FURTHER ORDAINED that the City of Mount Airy Zoning Ordinance be amended as follows: Article VI-Table of Permitted and Special Uses SR 44 Flex Space Facilities Flex space use shall comply with the following standards: A. Flex space uses shall meet the off-street parking requirement for this use type in Table 8.1.C.2, Minimum Off-Street Parking Requirements, not the individual types of uses within the flex space; B. The following activities shall not be included within a flex space use type: 1. Residential dwellings; 2. Religious institutions; 3. Adult-oriented businesses; 4. Restaurants or other eating establishments; 5. Bars, coektail lounges, or private clubs; 6. Nightelubs or dance halls; eF 7. Heavy manufacturing uses-and 8. Mini-storage or similar storage facility C. Outdoor storage or any business-related activity is permitted as an accessory use, subjeet to all applicable standards in this Ordinance; state and local laws, rules and regulations must be adhered to in the operation of such establishments. This includes regulations pertaining to advertisements and legality of products preseribed. D. Each land use operator and/or tenant must obtain a zoning permit from the City of Mount Airy Planning Department prior to occupation. Manufacturing and Industrial Uses USETYPES R-20 R-15 R-8 R-6 R-4 B-1 B-2 B-3 B-4 B-5 M-1 SR Electronics & electronic product X X Fabricated valve & wire] product X X Fat & oll, animal X Fat & oll, plant X X Fish, canned, cured orf frozen X Flex Space Faclities % X 44 Flonrenvering (exrent ramet) X Article VIII-Off Street Parking and Loading Flex Space Facilities 1 space per 500 square feet (entire building), subject to revision based upon specific tenant needs Artiele XV Section 15.4-Definitions Flex Space Facilities. Buildings designed to accommodate a combination of offices (e.g., service establishments and contractor's offices), wholesale establishments, archouainglatrhution, industrial services, and light manufacturing uses, with the exact proportions of each use being subject to user needs over time. Uses are treated as principal uses and subjeet to the standards and limitations applicable to such uses-e.g., parking, and are ineluded in the total gross floor area if located on the same lot. BE IT FURTHER ORDAINED this ordinance shall become effective upon approval. Approved and adopted this the Ist day of May, 2025. Jon Cawley, Mayor ATTEST: Melissa N. Brame, City Clerk City of Mount Airy April 17, 2025 Board of Commissioners Meeting Staff Report H ARO To: Mayor & Board of Commissioners From: Byron Brown - Planning Director Subject: 2025-ZTA-0001a (Text Amendment - Flex Space (Land Use)) A. ACTIONS REQUESTED BY BOARD OF COMMISSIONERS 1. Motion to adopt a statement approving the proposed zoning text amendment and describing its consistency with the plan; or 2. Motion to adopt a statement rejecting the proposed zoning text amendment and describing its consistency or inconsistency with the Comprehensive plan. B. REQUIRED VOTES TO PASS ACTIONS A majority vote is required to pass the requested actions. C. BACKGROUND This proposed text amendment seeks to address the trend of Flex Space facilities, which are buildings designed to accommodate multiple principle uses, that are adaptable to the user's needs, provides workspace for light manufacturing, office, and distribution type uses, amongst other uses. Unlike traditional warehouses, these facilities are intended for users of a variety of operations, and notj just seen as storage and distribution facilities. Having a single use in which to classify these facilities allows for more efficient review and implementation of standards. The proposed text amendment would add this use to the Permitted Use Table, permitted in only the Manufacturing Zoning District (M1). The standards for parking and use-specific standards have also been included in this amendment. D. ATTACHMENTS 1. Article VIII, Off-Street Parking and Loading (existing and updated) 2. Article III, Application, General Provisions, Exceptions and Modifications (existing and updated) 2025-ZTA-0001A 1 ORDINANCE NUMBER 2025-029 ORDINANCE TO REZONE PROPERTY LOCATED IN THE CITY OF MOUNT AIRY OPiedmont Triad West Drive WHEREAS, the City of Mount Airy has been petitioned by Bayfront Development, LLC to rezone two parcels (total 4.76 acres) located at 0 Piedmont Triad West Drive from B- 4 (Highway Business) to M-1 CD Industrial-Conditional Use); and WHEREAS, the Tax Identification Numbers for said parcels are 919-00-70-1535 and 5919-00-70-0962; and WHEREAS, the Planning Board of the City of Mount Airy has reviewed the petition and recommended the request to the Board of Commissioners for their consideration and approval; and WHEREAS, the Board of Commissioners of the City of Mount Airy adopted a resolution directing that a public hearing be conducted on the Ist day of May, 2-25; and WHEREAS, the Board of Commissioners, having conducted the public hearing and reviewed the recommendations of the Planning Board, concur that the properties herein described be rezoned and adopt the following Statement of Consistency: Statement of Consisteney "The rezoning request is consistent with the future land use recommendation of the Mount Airy Comprehensive Plan in that it is compatible with zoning and land uses within the Piedmont Triad Industrial Park. The request is also reasonable and in the public's interest." 99 NOW, THEREFORE BE IT ORDAINED by the City of Mount Airy Board of Commissioners that the two parcels (total 4.76 acres) identified as 0 Piedmont Triad West Drive (Tax ID 5919-00-70-1535 and 5919-00-70-0962) be rezoned from B-4 (Highway Business) to M-1 CD Induatrial-Conditional Use). BE IT FURTHER ORDAINED that the Zoning Map of the City of Mount Airy be amended to reflect this change. Approved and adopted this the Ist day of May, 2025. Jon Cawley, Mayor ATTEST: Melissa N. Brame, City Clerk City of Mount Airy April 17, 2025 Board of Commissioners Meeting Staff Report TH ARO To: Mayor & Board of Commissioners From: Byron Brown = Planning Director Subject: 2025-REZ-01 (Piedmont Triad West, B-4 to M-1 CD) A. ACTION REQUESTED BY BOARD OF COMMISSIONERS 1. Motion to adopt a statement approving the proposed rezoning and describing its consistency with the plan; or 2. Motion to adopt a statement rejecting the proposed rezoning and describing its consistency or inconsistency with the Comprehensive plan. B. REQUIRED VOTES TO PASS ACTION A majority vote is required to pass the requested action. C. SUBJECT PROPERTIES Property Owner(s): Bayfront Development LLC P.O. Box 1538 Pilot Mountain, NC 27041 Physical Address: OF Piedmont Triad West Drive Property PINS: 5919-00-70-1535 & 5919-00-70-0962 Zoning Area: 1.21 and 3.55 Acres Current Use: City of Mount Airy Public Works Current Zoning District: B-4 (Business - Highway Business) Proposed Zoning District: M-1 CD (Industrial - Conditional) 2025-REZ-0001 1 Effected Parcels: 2 Total Acreage: 4.76 Acres D. BACKGROUND The requested rezoning is for 2 parcels (PIN: 5919-00-70-1535 and 5919-00-70-0962) located Park at the northwest corner of the intersection of McKinney Road and Piedmont Triad West Drive within the Piedmont Triad West Industrial. These lots are currently zoned B-4 CD (Business, Highway Business-Oonditional). The requested rezoning for this site is M-1 CD (Industrial = Conditional). If rezoned, each parcel will fall under the standards of the Development Conditions that already exist within the industrial park. The Development Conditions include landscaping, parking, utility, drive-way and sign guidelines for the industrial park. Staff in the future will be recommending amendments to the Development Conditions, to bring them up-to-date with the conditions of the park today. Any amendments to the conditions associated with the industrial park requires 2/3 majority vote of the property owners within the park as well as Planning Board and Board of Commissioners approval. An amendment to the conditions in 2015 removed the acreage requirement for B-4 zoning and reduced M-1 acreage requirement to 2 acres. These properties would need to be combined, as the property PIN ending in '1535' does not meet the required acreage. The proposed rezoning is consistent with the Comprehensive Plan which calls for indutialmanuhacturing land uses in this existing industrial park. The applicant for this rezoning is a perspective developer who is proposing the use "Flex Space Facilities" this location. 2025-REZ-0001 2 E. ZONING MAP 3 NA B - - IA Sour e car Community 2025-REZ-0001 3 RESOLUTION NUMBER 2025-059 RESOLUTION APPROVING AMENDMENTS TO THE DEVELOPMENT CONDITIONS FOR PIEDMONT TRIAD WEST INDUSTRIAL PARK WHEREAS, the City of Mount Airy Planning Director has revised and amended the Development Conditions for the Piedmont Triad West Industrial Park; and WHEREAS, it is staff recommendation for approval of these revised and amended Development Conditions: NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF MOUNT AIRY BOARD OF COMMISSIONERS MEETING IN OPEN SESSIONTHAT: Section 1. The Board of Commissioners does hereby approve the Development Conditions for the Piedmont Triad West Industrial Park as amended (Attached). Section 2. The Board of Commissioners does hereby authorize execution of any necessary documents related to this item per review and approval by the City Attorney. Section 3. This resolution shall become effective upon approval. Approved and adopted this the Ist day of May, 2025. Jon Cawley, Mayor ATTEST: Melissa N. Brame, City Clerk City of Mount Airy April 17, 2025 Board of Commissioners Meeting Staff Report To: Mayor & Board of Commissioners From: Byron Brown - Planning Director Subject: 2025-ZTA-0001d (Text Amendment - PTW Development Conditions) 1. ACTIONS REQUESTED BY PLANNING BOARD 1. Motion to adopt a statement approving the proposed text amendments, describing its consistency with the plan; or 2. Motion to adopt a statement rejecting the proposed text amendment and describing its consistency or inconsistency with the Comprehensive plan. 2. REQUIRED VOTES TO PASS ACTIONS A majority vote is required to pass the requested actions. 3. BACKGROUND This proposed text amendment seeks to address inconsistencies, trend updates and elements oft the Piedmont Triad West Industrial Park Development Conditions which have not been enforced. The Piedmont Triad West Industrial Park established Development Conditions for properties located within the Industrial Park. These conditions cover a variety of development standards and site features including building design, driveways, temporary structures, limitations on land uses, landscaping, and pedestrian facilities amongst others. Today there has been limited enforcement and adhere to these standards. Staff is seeking to update standards associated with the industrial park that are out of date, have been limited in enforcement or do not reflect the existing nature of the park. Within the development conditions, it states that amendments to these standards must be approved by 2/3 majority vote of the property owners within the Park. Staff has obtained the required number of votes, in support of these amendments and is requesting the Board of Commissioners to adopted the recommended changes. 2025-ZTA-0001D 4. ATTACHMENTS 1. Piedmont Triad West - Development Conditions 2025-ZTA-0001D 2 PROPOSED AMENDEMENTS TO DEVELOPMENT CONDITIONS OF PIEDMONT TRIAD WEST INDUSTRIAL PARK Proposed: March 10, 2025 Amendment 1 - Permitted Uses: 5. Conditional Use Business 4 All uses permitted in the B-4 zoning tables of the Mount Airy Zoning Ordinançe as of January 1, 2005. Muli-tenant developments or big box relail shall rot exceed 200,C00 square feeti in of Commissioners. area without approval oft the City Board The followirg uses are strictly prohibited; uses with outside storage, auto, boat, or clinics, funeral homes, septic tank services, flea markets, mocile home truck sales, animal kenne's or anima! lattoo sheps, taxidermist, truck and ulility trailer rental, sales, pawn shops, tire dealers, lanning salons, cemeteries, hunting and fshing clubs, night cubs/bars, sales, or leasing, building supply dealers, exterminating services, Conditional Use M-1 Aluses permitted in the M-1 zonirg tables as of, January 1, 2005. Stnctly prohibited are the mining ofe eartn products, above ground pipelines, open beits, junkyards, auto sales, repair or service shops. storage or salvage yards, solid waste conveyor disposal wrecking facilities or capping shops, open storage, flea markets go-cart tracks and mini-warehoJses. sites, aspha't plants, tire re- Exterminating Services: This use is being proposed as part of rezoning of another property within the PTW. Exterminating services should be considered for removal. Auto sales, repair or service shops: Consider redefining use to be more specific, providing flexibility for customization services. Suggested language: a .auto sales, engine repair or maintenance service shops; not including specialized services such as audio, tinting, exterior graphic, interior and upholstery customization and repair, and body work... n Add proposed language. Open Storage: Currently in the Piedmont Triad West Industrial Park, there are a number of business that have open storage areas either as their primary land use or as an accessory to the primary land use. Open storage should be considered for removal. Amendment 2 - Site and Building Appearance SIEAN BUDING APPBARANEE Exterior bulding walls shail be constructed of durable and permânent architectural materials - architeclural surfaces brick, stone, or other Building materials and designs standards have changed over time. Removing this section reflects the nature of buildings currently within the industrial park that do not meet this standard. In the future, more detailed design standards for architectural review should be considered if intent is uniform development within the park. Remove. Amendment 3 Loading Docks Loading dock areas sha. be on tne side or back of the structures. To allow for more flexible design and use of larger industrial and manufacturing operations, the following language is being proposed: "Elevated loading dock areas shall be on the side or back of the structures. - "At-grade loading bays are allowed features on the front façade of a building. Front facing loading areas should be minimized to encourage pedestrian safety and traffic circulation." Add proposed language. Amendment 4 = Pedestrian Amenities PEDESTRIAN, AMENITIES Al developments shali inciude provisions for pedestrian scale amenites such as frash receplacles. benches, picnic tables, courtyards, and At buiidings or bulding clusters w.thin a development shall be connected with linkages other than roads. Animprovedv wHS-AeN adacenn Ses The PTW Development Conditions requires improved walkways or sidewalks connect adjacent sites. Due to the geography of the industrial park, there would be areas that can not be connected. Also, there currently exists no sidewalks or connections between adjacent sites/properties. Removing this requirement does not impact the overall nature of the industrial park. Internal connections/linkages per development will still be required. Remove bullet 3. Conditional Use M-1 All uses permitted in the M-1 zonirg tables as of, January 1, 2005. Strictly prohibited are the mining of earth products, above ground plpelines, open beits, junkyards, auto sales, repair or service shops storage or salvage yards, solid waste conveyor wrecking façilites or capping shops, open storage, fear markets go-cart tracks and mini-warehosses. disposal sites, asphalt plants, tire re- 1. The applicant has requested the removal of this use from the prohibited list. There has been interest expressed in window tinting, which would be classified as a service. This condition can be removed or reworded to prohibit other automobile services. 2. Open Storage sites are found in the PTW at two locations as primary uses. This should be removed. FENCES. Au site fencing shall be of a permanent material and compatible with the material used on the exterior buildings. Chain link fencing is allowed, witn proper! landscaping to afford an opaque screen within 2y years building of wails of planting. 3. Several companies have chain link fences on their properties. Very few have landscaping that creates an opaque screen or any screening of the site or contents inside. SITE AND BUILDING. APPEARANCE. Exterior building walls shail be constructed cf durable and permanent architecturai materials - architeclural surfaces brick, stone, or other 4. As written this was either intended to prohibit materials such as metal, or allow any materials per architectural surface treatment. This should be either clarified or removed. LANDSCAPING. On-site landscaping shall be provided per the cily's zoning requirements for trash containers, and maintenance facilities. storage areas, incinerators, storage tanks, 5. Landscaping standards need to be enforced and encouraged on all properties. Currently there are storage tanks and storage areas that do not meet landscaping requirements. o Loading dock areas shall be on tne: side or back of the structures. 6. Referring to loading areas, request is being made to remove this condition. PEDESTRIAN. AMENTTIES All developments shal, inciude provisions for pedestrian scaie amenites such as benches. trash: receptacles. picniç tables, courlyards, and AI bunidings or bulding clusters within a development shall be connected with linkages other than An improved walkway shali be regured connecling al! adjacent sites. toads. 7. Currently there exists no linkages to adjacent sites within the PTW. This is being requested to be removed. 3 & Doc. ID: 004083330005 Type:. CRP Recorded: 04/20/2005 at 12:15:07 PM Fee Amt: $26.00 Page 1 of_5 Gounty North Carolina Burluco M. Comer Rea of Deeds -1070-932-936 PIEDMONT TRIAD WEST MOUNT AIRY, NORTH CAROLINA DEVELOPMENT CONDITIONS The City of Mount Airy is the owner of the lots within the Piedmont Triad West Industrial Park as shown City has established a general plan for the improvement of the lots within the Piedmont Triad on the attached maps. The establish these conditions, reservations, and restrictions (collectively the West Industrial Park, and does hereby any portion of said lots shall be improved or sold. Each and every one "Development of these Conditions") upon which and subject to which owner of said lots, shall inure to and pass with each and of Development Conditions is for the benefit of each interest of the present owner(s) tnereof. A right to change any every or all portion of these said lots, and shall bind the respective successors in then property owners is reserved. if an owner of any tract Development Conditions by a 23 majority vote of the Development Conditions, it shall be lawful for (or portion thereof), or their successors in title, shall violate any of these or in equity in order to prevent or abate such any violation. other person Invalidation owning any lot or portion thereof to prosecute any proceedings at law order, statute, or judicial decision shall in no way affect any of the other of provisions any of these herein Development Conditions by judgment, court and effect. In the event that there is any conflict between those Development Conditions contained, which shall remain in full force in such event the more restrictive construction shall be deemed controlling. and the Mount Airy Zoning Ordinance, then ZONING. Area shall be zoned Conditional Use Business 4 and Conditional Use M-1 as shown on Attached maps. PERMITTED USES. Conditional Use Business 4 All uses permitted in the B-4 zoning tables of the Mount Airy Zoning Ordinance as of January 1, 2005. Multi-tenant developments or big box relail shall not exceed 200,000 square feeti in area without of Commissioners. approval of the City Board Thet following uses are strictly prohibited; uses with outside storage, auto, boat, or truck sales, anima! or clinics, funeral homes, septic tank serviçes, fea markets, mobile home sales, pawn tire kennels animal tattoo shops, taxidermist, truck and utlity trailer rental, sales, or leasing, building supply shops, dealers, dealers, tanning salons, cemeteries, hunting and fishing clubs, night clubs/bars. exterminating services, Abusiness use not listed in the B-4 Zoning Table would have to have the approval of the City Board of Commissioners. Conditional Use M-1 All uses permitted in the M-1 zoning tables as of January 1, 2005, 2 Strictly prohibiled are the mining of earth products, above ground pipelines, open conyeyor beits, facilities junkyards, auto sales, repair or service shops, storage or salvage yards, solid waste disposal sites, wrecking asphalt tire or capping shops, open storage, flea markets go-cart tracks and min-warehouses. plants, re- Ar manufacturing use thati is not listed in the M-1 Zoning Table would have to have the approval of the Commissioners. City Board of SETBACKS. Conditional Use M-1 Structures shall be sétback a minimum of 50 feet from any front properly line and 25 feet from side line. any or rear property Conditional Use B-4 Structures shail be setback per the zoning ordinance. LOT COVERAGE. Maximum impervious surface area shail not exceed 75% of gross land area in CU M-1 and CU B-4 areas. PARKING. Al parking and loading areas shall be developed per the zoning ordinance. Mutual shared access agreements shall be ençouraged between adjacent property owners with frontage. Adjacent developments shall connect interior parking areas, Adjaçent or shared parking arrangements shall have a minimum of a 10 foot landscaped separation. FENCES. All site fencing shall be of a permanent material and compatible with the material used on the exterior buildings. Chain link fencing is allowed, with proper landscaping to afford an building walls of opaque screen within 2) years of planting. SIGNS. Refer to Section 9.9 of Zoning Ordinance: UTILITIES. All site utilities and related wire appurtenances shall be underground within the Commercial zoned There are no requirements for underground utilities in to the Industrial zoned properties. properties. DRIVEWAYS. Driveway openings shall be separated by a minimum of 150 linear feet cn-site and limited to 1 per street additional openings are granted by the city. abutting unless Driveway widths shall be approved by the city following general NCDOT standards ofj practice. One access point shall be allowed for property with less than 400 feet oft frontage. Two access points shall be allowed ifp property exceeds 400 feet of frontage. Three access points may be allowed for properties with more than 800: feet of frontage. Shared access points are recommended. LOT SIZES FOR CU-MI AREAS. Ali development shall consist of tracts 5 acres or greater. SITE AND BUILDING APPEARANCE. Exterior building walis shall be constructed of durable and permanent architectural materials architeçtural surfaces. brick, stone, or cther ADDITIONS. Building additions shall be designed to reflect the existing building in scale, height, materials, window treatment, and signage, color. NUISANCES, No horns, whistles, belis or other sound devices, except safety, emergency, and security devices used security purposes. exclusively for No rubbish or debris of any kind, shall be located, used or placed on any parcel. LANDSCAPING. On-site landsçaping shall be provided per the city's zoning requirements for trash containers, and maintenance facilities. storage areas, incinerators, storage tanks, LOADING DOCKS. Loading dock areas shall be on the side or back of thé structures. LIGHTING. Lighting shall be shielded and directed so as not to infringe on adjacent streets, properties, or the open sky. TEMPORARY STRUCTURES. No temporary structure, fent; or bam of any kind shall be erected upon any All sales or construction offices musi be removed within 60 days after completion parcel. of sales and construction. PEDESTRIAN AMENITIES All developments shall include provisions for pedestrian scale amenities such as trash receptacles. benches, picnic tables, courtyards, and AB buildings or building clusters within a development shall be connected with other than An improved walkway shall be required connecting all adjacent sites. linkages roads. TOWERS. No television, radio, or other electronic towers or device of any type shall be erected, or or improvements thereon unless it is in conformity with the zoning ordinance. permitted to remain on any parcel APPROVALS Prior to the issuance of a Zoning Permit, all building plans, site plans, and elevation schematics shall be Department of Planning for review and approyal of the Conditional Use Rezoning. submitted to the Upon site plan approval, the Department of Planning will issue a Conditional Use Zoning Permit. OTHER CONDITIONS. Property not to be sold to not-for-profit or tax exempt agency without requirement of In county equal to annual property tax: and is not exempt. payment lieu of taxes to city and Runs with the land May be amended with approval of2 2/3 of property Owners within the park. Approved by the City of! Mount Airy Board of Commissioners, November 5, 1998 and amended April 7, 2005. 1, Barbara A. Jones, City Clerk of the City of Mount Airy, do hereby certify that the proceedings of the Board of Commissioners of the of Mount foregoing is a true copy of SO much of the corporate seal of the said city, this the 19h day of April, City 2005. Airy, at a meeting held April 7, 2005. Witness my hand and the bashaw a Ovo 4989 Barbara, A. Jones, City Clerk 22 6 FEB 7 : M NORTH W North Carolina County of Surry I, Melissa N. Nanable a notary public for said County and State, do hereby certify that farbac A Jones and acknowledged that she is the Clerk to the Board of the personally of Mount appeared before me this day copy of a portion of the proceedings of the Board of City Airy and certified a true its April 7, 2005 meeting. Commissioners of the City of Mount Airy at Wimgamyphop, and official seal, this the aots day of Apal N. 2005 ConLE Ep. My 25,205 June PUBLI9 - Mulna 1 Manali Notary Public My Commission Expires June &h 2005. STATE OF NORTH CAROLINA, The forggoing or fpllowingo COUNTYOF SURRY o LAA 00 carticatels) of. 0MElle is (are) certified fo be correct. CAROLYN M. COMER REGISTER OF ahonda DEEDS Assislant Deputy Bostv EXHIBIT A DEVELOPMENT CONDITIONS FOR THE PIEDMONT TRIAD WEST INDUSTRIAL PARK The COMMERCIAL, AREA, zoned CU-B4, is shown Book 15; Page 37, Surry County Registry, said on that plat of survey recorded in Plat reference as ifi fully set out. plat description being incorporated herein by The INDUSTRIAL AREA, zoned CU-M-1, is Book 17, Page 147, Surry County shown on that plat of survey recorded in Plat reference as if fully set out. Registry, said plat description being incorporated herein by The City of Mount Airy reserves the right to time to time. modify these descriptions as may be necessary from For Reference See Plat Book 15, Page 37, Surry County Registry BK 1518 PG 1023 - 1033 (11) This document presented and filed: 05/18/2015 12:56:25 PM Fee $26.00 626403 Surry County North Carolina CAROLYN! M. COMER, Register of Deeds HC Slatc of North Carolina County ofSurry AMENDMENT TO DEVELOPMENT CONDITIONS PIEDMONT TRIAD WEST INDUSTRIAL PARK MOUNT AIRY, NORTH CAROLINA THIS AMENDMENT TO DEVELOPMENT CONDITIONS FOR WEST INDUSTRIAL PARK is being made and entered into for the PIEDMONT TRIAD certain section ofthe Development Conditions recorded in Book purpose ofamending a Registry and shall be cffective. as ofthe date of the last bclow 1070, Page 932, Surry County signature (the "Effcctive Date").. WITNESSETH: WHEREAS, the undersigned are the owners ofthe lots within the Piedmont Industrial Park ("PTW"). The City ofMount Airy Triad West improvement oflots within PTW and previously established a general plan for thc promulgated certain conditions, restrictions (collcctively thc "Development rescrvations and portion of the lots within PTW shall be Conditions") upon which and subjcct to which any improved or sold; WHEREAS, the Dcvelopment Conditions were recorded on thc office ofthe Register of Deeds of April 20, 2005 and appear in Surry County, North Carolina in Record Book 932; 1070, Page WHEREAS, the Development Conditions provide, in pertinent part, that any or all of the Devclopment Conditions can be changed by a 2/3 majority vote of the then within PTW; and property owners WHEREAS, as ofthe cffcctive date of this Amendment, thc City of Mount Airy and the following parties constitulc 100% ofthc property owncrs within PTW, namcly: Page 1 of 11 Nha PIN: 591900619380 1/ . Owner: RAINBOW RASCALS MOUNT AIRY III 1732 CROOKS RD TROY MI 48084 Physical Address: 203 MOUNTAIN VIEW LN Deed Reference: 1417 588 Acres: 2.116 PIN: 591900704740 Owner: TWIN COUNTY ENERGY INC A VIRGINIA CORPORATION 10854 GRAYSON PARKWAY GALAX VA 24333 Physical Address: 150 PIEDMONT TRIAD WEST DR Deed Reference: 1488 294 Acres: 2.161 PIN: 591904545428 Owner: THEDEN TIM F C/O WILLOW TEX LLC ATTN: LYNN STEVENS 501 PIEDMONT TRIAD WEST DR MOUNT AIRY NC 27030-9850 Physical Address: 501 MOUNTAIN VIEW LN Deed Reference: 1427 674 Acres: 10.73 PIN: 591904546924 Owner: ROCK SOLID DIMENSIONAL STONE 613 LAKEMONT TRL PO BOX 63J1 MOUNT AIRY NC 27030-6311 Physical Address: 581 Mountain View Lanc Deed Reference: 1075 946 Acres: 5 Page 2 of 11 Amended Devclopment Conditions 2 Picdmont Triad West Industrial Park Mount Airy, North Carolina PIN: 591904541958 Owner: CENTRAL STATES MANUFACTURING C/O DARWIN NELSON 302 JANE PL LOWELL AR 72745-0000 751 MOUNTAIN VIEW LN Physical Address: Deed Reference: 1311 548 Acres: TO PIN: 591900554715 Owner: CK TECHNOLOGIES LLC 1701 MAGDA DR MONTPELIER OH 43543-9368 Physical Address: 710 MOUNTAIN VIEW LN Deed Reference: 1095 292 Acres: 30.19 WHEREAS, the City of Mount Airy now desires LO amend and does hercby amend thesc Dcvelopment Conditions. By their signatures below, thc undersigned hercby consent to the amendment oft the Development Conditions set forth in this Amendment. These amended Devclopment Conditions are for the benefit of cach owncr ofany portion of PTW, or any interest thcrcin, and shall inure to and pass with cach and cvery portion of said premises, and shall bind the respcctive successors in interest oft the present owner thercof, Thesc amended Development Conditions are, and cach thercof is, imposed upon said premises and are to be construed as restrictive covenants running with the title lo said premiscs and with each and every lot or parccl thercof to thc same extent as contained in the original Development Conditions appearing in Rccord Book 1070, Pagc 932, Surry County Registry. NOW, THEREFORE, based upon a 2/3 majority vote of the property owners within PTW approving this amendment, the Development Conditions appcaring in Record Book 1070,. Pagc 932, Surry County Registry arc, therefore, amended as ofthe Effective Datc hcrcof: as follows: I. A. Recitals. The forcgoing recitals arc incorporated hercin for all purposcs. Page 3 of 11 Amended Development Conditions Picdmont Triad West Industrial Park Mount Airy, North Carolina B. Delction of Five (5) acre lot sizc for CU-MI Arcas. The Development Conditions currently provide that all development within the arcas ofPTW designated as Conditional Usc MI ("CU-MI") shall consist oft tracts fivc (5) acres or greater. This minimum lot size of five (5) acres is hereby deletcd. C. Amendment to makc the minimum lot sizc Lwo (2): acrcs for CU-MI Arcas. Thc Development Conditions are hereby amended as follows: The minimum lot size shall be two (2) acres for all property to be developed within the areas designated as CU-M1. For purposes of calculating acreage, areas within any road right-of-way or public utility easements shall NOT be included. II. Binding Effect: Except as modified hercin, the original Development Conditions recorded in Rccord Book 1070, Page 932, Surry County Rcgistry, shall remain in full force and effect. In the event of any conflict, this Amendment shall govern and prevail. ITI. Board ofCommissioners Approval. The Mayor shall execute, on behalf of the City of Mount Airy, this Amendment as authorized by resolution of the Board ofCommissioners adopted at a duly called meeting of the City of Mount Airy. Remainder of page intentionally blank. The remaining pagcs are signature pages Page 4 of 11 Amended Devclopment Conditions Picdmont Triad West Industrial Park Mount Airy, North Carolina WITNESS thc hand and seal of the undersigned as of the Jater of the date set forth below. City of Mount Airy, a North Carolina municipal corporation The City of Mount Airy has caused this deed to be executed in its name by its Mayor and attested by its Clerk and its seal duly affixed thereto all by authority oft the resolution beretofore sel forth, the day and year first above writlen. CITY OF MOUNT AIRY Sleyphen BY: q.yepeles Mayor Pro empohe ES: 8 Mclioe - Bln , . NORTH CAROLINA SURRY COUNTY I, Andrew Lyle (hc undersigned Notary Public of said County and State, certify that BERORAICOCIANA BeSaily appeared okeltn. before me this day and acknowledged that shc is the Mayorsf7 ecify yaFMount Airy, North Carolina, and that by authority duly given and as the act of the City of Mount Airy, North Carolina, the foregoing instrument was signed in its name by its Mayor, sealed with its seal, and attested by the City Clerk ofthe City of Mount Airy. WITNESS my hand and scal, this the g'hday of May 2015. la - a Ahu Notary Public My commission expires: Celober 342016 (Scal) LE * * * CUBLIG e lans COUNS Page 5 of 11 Amended Development Conditions Piedmont Triad West Industrial Park Mount Airy, North Carolina WITNESS the hand and seal of the undersigned as oft the date set forth below. RAINBOW RASCALS MOUNT AIRY III (SEAL) BY: Title: State of County of I, the undersigned notary, by authority invested in me by the above County and State, certify that personally came before me this day and acknowledged that he (or she) is of RAINBOW RASCALS MOUNT AIRY III, and that he/she, being authorized to do sO, executed the foregoing as the act and on behalf of said company. Witness my hand and official seal, this the day of 2015. (Official Seal) NOTARY PUBLIC My Commission Expires: Page 6 of 11 Amended Development Conditions Piedmont Triad West Industrial Park Mount Airy, North Carolina WITNESS the hand and seal of the undersigned to be effective as of the date set forth below. TWIN COUNTY ENERGY, INC., a Virginia Corporation (SEAL) BY: Title: State of County of I, the undersigned notary, by authority invested in me by the above County and State, certify that personally came before me this day and acknowledged that he (or she) is ofTwin County Energy, Inc., a Virginia corporation, and that he/she, being authorized to do sO, executed the foregoing as the act and on behalf of said company. Witness my hand and official seal, this the day of 2015. (Official Seal) NOTARY PUBLIC My Commission Expires: Page 7 of 11 % Amended Development Conditions Piedmont Triad West Industrial Park Mount Airy, North Carolina WITNESS the hand and seal of the undersigned to be effective as of the date set forth below. Matca h. Sioeus (SEAL) TIM F. THEDEN Notary) yPublic Surry Comaty, NC State of Mah as tie conmission - County of 1, the undersigned notary, by authority invested in me by the above County and State, certify that TIM F. THEDEN personally came before me this day and acknowledged the due execution of the foregoing and annexed instrument for the purposes therein expressed. Witness hand and official seal, this the 11 r day of kE 2015. my (Official Seal) ) LL SteuL NOTARY PUBLIC My Commission Expires: 31 : Page 8 of 11 Amended Development Conditions Picdmont Triad Wesi Industrial Park Mount Airy, North Carolina WITNESS thc hand and scal oft thc undersigned to be cffcctive as of thc date sct forth below. DIMEA RCK SOLID DIMENSIONAL STONE, INC., a North Carolina corporation (SEAL) Se AATitlg a e State of North Carolina County of Surry County I, thc undersigned notary, by authorityi invested in mc by thc above County and Statc, certify that DOVQIAS R. POYtci personally came bcforc mc this day and acknowledged that he (or shc) is President of Rock Solid Dimensional Stone, Inc.. a North Carolina corporation, and that he/shc, bcing authorized to do sO, cxccuted the forcgoing as thc act and on bchalf of said corporation. Witness my hand and official scal, this the lo day of JOnVaYy 2015. (Official Scal) Pmlur Muvolle NOTARY PUBLIC My Commission Expires: Nove mbex 9,20lbo rs 5/ NOTARY , PUBLC titll tm COuNN Page 9 of 11 Amended Development Conditions Piedmont Triad West Industrial Park Mount Airy, North Carolina WITNESS the. hand and seal of the undersigned to be effective as of the date set forth below. CENTRAL STATES MANUFACTURING, INC., an Arkansas corporation authorized to do business and doing business in North Carolina (SEAL) BY: Title: State of County of I, the undersigned notary, by authority invested in me by the above County and State, certify that personally came before me this day and acknowledged that he (or she) is of Central States Manufacturing, Inc., and that he/she, being authorized to do sO, executed the foregoing as the act and on behalf of said corporation. Witness my hand and official seal, this the day of 2015. (Official Seal) NOTARY PUBLIC My Commission Expires: Page 10 of 11 Amended Development Conditions Piedmont Triad West Industrial Park Mount Airy, North Carolina WITNESS the hand and seal of the undersigned to be effective as of the date set forth below. CK TECHNOLOGIES, LLC (SEAL) BY: to Titlc: 2 P. State of Owio County of wLAs I, the undersigned notary, by authority invested in me by the above County and State, certify that K U S Atp S personally came before me this day and acknowledged tht he (or she) is V.P. ofCK TECHNOLOGIES, LLC., and that he/she, being authorized to do so, executed the foregoing as the act and on behalf of said company. Witness my hand and official seal, this the 29 day of Awws 2015. /. NOTARY PUBLIC Expires: 3 ssjen /20-210 nHn Page 11 of 11 RESOLUTION NUMBER 2025-060 RESOLUTION OPPOSING CHANGES TO LOCAL PLANNING AND ZONING IN HOUSE BILL 765 AND RELATED BILLS BY THE NORTH CAROLINA GENERAL ASSEMBLY WHEREAS, House Bill 765 has been introduced in the 2025 session of the North Carolina General Assembly that changes many aspects ofl local planning and zoning and dramatically affects the ability oflocal governments to reflect the will of their citizenry; and WHEREAS, local governments have historically been the final guardian of the rights of the people, and local government zoning has made in-person attendance and comment easier for proponents and opponents of zoning decisions, thereby allowing citizens to participate in matters that affect them through the Public Hearing Process; and WHEREAS, House Bill 765 now pending in the General Assembly will effectively mandate many planning and zoning decisions that are now made by local governments through the public participation process and will drastically change the process and destroy the local community's authority to uphold public health, safety, and welfare; and WHEREAS, Chapter 160D of the North Carolina General Statutes mandates comprehensive planning and zoning, and this Chapter of the Statutes would be severely eroded by passage of House Bill 765 by diminishing the input and trust of the citizens, including those who voluntarily serve on the City's advisory boards; and WHEREAS, House Bill 765 creates an unnecessary paperwork burden, which will increase the cost of providing Planning and Zoning services with no real benefit to the citizens who pay the taxes to support government services; and WHEREAS, local governments with input of their citizens can best recognize and enforce the need for planning and zoning ordinances; and WHEREAS, the City of Mount Airy strongly feels that local governments are best suited to represent their citizens on local matters; and WHEREAS, local governments should decide planning and zoning issues with the advice and help of their citizens who want to participate in such important decisions: NOW,T THEREFORE, BE IT RESOLVED that the City of Mount Airy Board of Commissioners urges the North Carolina General Assembly to leave planning and zoning decisions to the locally elected Boards and their citizens, and that the North Carolina General Assembly immediately terminate House Bill 765 and other related or similar bills, which severely undermine the rights of the local citizens and their elected local government officials to make the zoning rules for their community as they see fit. Approved and adopted this the Ist day of May, 2025. Jon Cawley, Mayor Deborah Cochran, Mayor Pro Tempore David Hall, Commissioner Chad Hutchens, Commissioner Phil Thacker, Commissioner Calvin Vaughn, Commissioner ATTEST: Melissa N. Brame, City Clerk GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H 2 HOUSE BILL 765 Committee Substitute Favorable 4/17/25 Short Title: Local Gov. Development Regulations Omnibus. (Public) Sponsors: Referred to: April 7, 2025 1 A BILL TO BE ENTITLED 2 AN ACT TO REFORM LOCAL GOVERNMENT DEVELOPMENT REGULATIONS IN 3 THIS STATE. 4 The General Assembly ofl North Carolina enacts: 5 SECTION 1.(a) G.S. 160D-601, as amended by Section 3K.1 ofS.L. 2024-57, reads 6 as rewritten: 7 "S 160D-601. Procedure for adopting, amending, or repealing development regulations. 8 9 (d) Down-Zoning. No amendment to zoning-regHaliems-erA-ZeRRE-meP zoning 10 regulation that down-zones property shall be initiated, enacted, or enforced without the written 11 consent of all property owners whose property is the subject of the down-zoning 12 mendmemtamendment, unless the down-zoning amendment is initiated by the local 13 government. 14 (e) For purposes of this section, down-zoning" or "down-zone" means a zoning 15 eréimanee-regulation that affects an area ofland in one of the following ways: 16 (1) By decreasing the development density of the land to be less dense than was 17 allowed under its previous usage. 18 (2) By reducing the substantive permitted uses of the land that are specified in a 19 zoning ordinance eF-land-develepment-reguation-to fewer uses than were 20 allowed under its previous usage. 21 (3) By-ereating-any-ypeefmensemfemiyyon-amdmetimere-residential-zeming 22 distieky-imeludinga-momsemfemingise-mensemfemminglekymeneenfoemming 23 snslresonsenemingipaker.iw 24 SECTION 1.(b) This section is effective when it becomes law and applies 25 retroactively to December 11, 2024. Any development ordinance affected by Section 3K.1 of 26 S.L. 2024-57 shall be treated as if it remained in effect from June 14, 2024, to December 11, 27 2024. 28 SECTION 2.(a) G.S. 160D-101 reads as rewritten: 29 "S 160D-101. Application. 30 (a) The provisions ofthis Article shall apply to all development regulations and programs 31 adopted pursuant to this Chapter or applicable or related local acts. To the extent there are 32 contrary provisions in local charters or acts, G.S. 160D-111 is applicable unless this Chapter 33 expressly provides otherwise. The provisions of this Article also apply to any other local 34 ordinance that substantially affects land use and development. 35 (b) The provisions of this Article are supplemental to specific provisions included in 36 other Articles of this Chapter. To the extent there are conflicts between the provisions of this 6 5 V 2 General Assembly Of North Carolina Session 2025 1 Article and the provisions of other Articles of this Chapter, the more specific provisions shall 2 control. 3 (c) Local governments may also apply any of the definitions and procedures authorized 4 by this Chapter to any ordinance that does not substantially affect land use and development 5 adopted under the general police power of cities and counties, Article 8 of Chapter 160A of the 6 General Statutes and Article 6 of Chapter 153A of the General Statutes respectively, and may 7 employ any organizational structure, board, commission, or staffing arrangement authorized by 8 this Chapter to any or all aspects of those ordinances. 9 (d) This-Chapterdesmokepma,dminaer.le-le-mpesfsefemtheriy/erphamming 10 médeveiepmentregalaonautieiraebyeharchpiesefliefthe-Gemema-Siassies. 11 (e) Except as provided by local act, notwithstanding any other provision of law, a local 12 government may not exercise development regulation authority except as expressly authorized 13 by this Chapter. If State law governs a particular subject matter related to a local development 14 regulation authority, a local government shall not enact or enforce development regulations more 15 restrictive than those established by State law, unless the development regulation pertains to 16 floodplain management regulations as described in G.S. 143-138(e)." 17 SECTION 2.(b) G.S. 160D-110(a) reads as rewritten: 18 "(a) G.S. 153A-4 and G.S. 160A-4 are not applicable to this Chapter.' " 19 SECTION 2.(c) G.S. 153A-121 is amended by adding a new subsection to read: 20 "(d) This section does not apply to the adoption or enforcement of development 21 regulations under Chapter 160D ofthe General Statutes. I 22 SECTION 2.(d) G.S. 160A-174 is amended by adding a new subsection to read: 23 "(c) This section does not apply to the adoption or enforcement of development 24 regulations under Chapter 160D oft the General Statutes.' I 25 SECTION: 3. G.S. 160D-102 is amended by adding the following new subdivisions 26 to read: 27 "(la) Acre. = The actual gross acreage of a parcel or parcels. For purposes of 28 determining allowable residential density, the actual gross acreage shall not 29 be reduced by subtracting buffers. setbacks. public or private streets. open 30 space or recreation areas, or other nondevelopable areas. 31 32 (3m) Buffer yard. - A designated landscape area to separate uses or densities: to 33 reduce impacts of traffic, noise, odor; or to enhance visual appearance. 34 35 (15c) Dwelling unit. - A single unit, subject to the North Carolina Residential Code, 36 providing complete. independent living facilities for one or more persons, 37 including permanent provisions for living, sleeping, eating, cooking, and 38 sanitation. 39 40 (23m) Nonconformity. Any of the following that was lawfully operated. 41 established. or commenced in accordance with applicable development 42 regulations in effect at the time the nonconformity became nonconforming sO 43 long as the nonconformity is not extended, expanded. enlarged. increased, or 44 intensified: 45 a. A lot, parcel, or tract ofland that fails to meet all current development 46 regulation requirements. 47 b. A structure that no longer complies with all current development 48 regulation requirements applicable to that structure. 49 C. The use ofa property for a purpose or activity, or in a manner, made 50 unlawful by a current development regulation. Page 2 House Bill 765-Second Edition General Assembly OfNorth Carolina Session 2025 d. Any dwelling, accessory building, accessory structure, outdoor 2 lighting, fence, wall, sign, off-street parking. vehicular surface area, or 3 private access point." " 4 SECTION 4. G.S. 160D-108 reads as rewritten: 5 "S 160D-108. Permit choice and vested rights. 6 7 (d) Duration of Vesting. - Upon issuance of a development permit, the statutory vesting 8 granted by subsection (c) ofthis section for a development project is effective upon filing of the 9 application in accordance with G.S. 143-755, for sO long as the permit remains valid pursuant to 10 law. Unless otherwise specified by this section or other statute, local development permits expire 11 one year after issuance unless work authorized by the permit has substantially commenced. A 12 local land development regulation may provide for a longer permit expiration period. For the 13 purposes of this section, a permit is issued either in the ordinary course of business of the 14 applicable governmental agency or by the applicable governmental agency as a court directive. 15 Except where a longer vesting period is provided by statute or land development regulation, 16 the statutory vesting granted by this section, once established, expires for an uncompleted 17 development project if development work is intentionally and voluntarily discontinued for a 18 period of not less than 24 consecutive months,and-the-stia:uingpenesgrantedbytas 19 seetien-fer-a-momenfemnfomaingimeofprvpeyepire-ifteselsimiemimalyy-end-vohantarly 20 discentinsedfereperiadfautlastamteeenseivemonths: The 24-month discontinuance 21 period is automatically tolled during the-any ofthe following: 22 (1) The pendency of any board of adjustment proceeding or civil action in a State 23 or federal ial-er-appetlate-court regarding the validity of a development 24 permit, the use ofthe property, or the existence of the statutory vesting period 25 granted by this section. 26 2) The 24-menthdiseentimsaneeperedisalseleledduringthependency of any 27 litigation involving the development project or property that is the subject of 28 the vesting. 29 The duration of any emergency declaration issued under G.S. 166A-19.20 or 30 G.S. 166A-19.22 for which the defined emergency area includes the property, 31 in whole or inj part. 32 33 (h) Process to Claim Vested Right. - A person claiming a statutory or common law vested 34 right may submit information to substantiate that claim to the zoning administrator or other 35 officer designated by a land development regulation, who shall make an initial determination as 36 to the existence of the vested right. The decision of the zoning administrator or officer may be 37 appealed under G.S. 160D-405. On appeal, the existence of a vested right shall be reviewed de 38 novo. In lieu of seeking such a determination or pursuing an appeal under G.S. 160D-405, a 39 person claiming a vested right may bring an original civil action as provided by 40 G.S. 160D-1403.1. This subsection shall apply to the claiming of vested rights in a 41 nonconformity under G.S. 160D-108.2. 42 43 SECTION 5. G.S. 160D-108.1 reads as rewritten: 44 "S 160D-108.1. Vested rights site-specific vesting plans. 45 46 (c) Approval and Amendment of Plans. - If a site-specific vesting plan is based on an 47 approval required by a local development regulation, the local government shall provide 48 whatever notice and hearing is required for that underlying approval. A duration ofthe underlying 49 approval that is less than twe-five years does not affect the duration of the site-specific vesting 50 plan established under this section. If the site-specific vesting plan is not based on suehan House Bill 765-Second Edition Page 3 General Assembly Of North Carolina Session 2025 1 approval,an approval required by a development regulation,a legislative hearing with notice as 2 required by G.S. 160D-602 shall be held. 3 A local government may approve a site-specific vesting plan upon any terms and conditions 4 that may reasonably be necessary to protect the public health, safety, and welfare. Conditional 5 approval results in a vested right, although failure to abide by the terms and conditions of the 6 approval will result in a forfeiture of vested rights. A local government shall not require a 7 landowner to waive the landowner's vested rights as a condition of developmental approval. A 8 site-specific vesting plan is deemed approved upon the effective date of the local government's 9 decision approving the plan or another date determined by the governing board upon approval. 10 An approved site-specific vesting plan and its conditions may be amended with the approval of 11 the owner and the local government as follows: any substantial modification must be reviewed 12 and approved in the same manner as the original approval; minor modifications may be approved 13 by staff, if such-the modifications are defined and authorized by local regulation. 14 15 (e) Duration and Termination of Vested Right. - 16 (1) A vested right for a site-specific vesting plan remains vested for a period of 17 twe-five years. This vesting shall not be extended by any amendments or 18 modifications to a site-specific vesting plan unless expressly provided by the 19 local government. 20 (2) Notwithstanding the provisions of subdivision (1) of this subsection, a local 21 government may provide for rights to be vested for a period exceeding twe 22 five years but not exceeding five-eight years where warranted in light of all 23 relevant circumstances, including, but not limited to, the size and phasing of 24 development, the level ofinvestment, the need for the development, economic 25 cycles, and market conditions or other considerations. These determinations 26 are in the sound discretion of the local government and shall be made 27 following the process specified for the particular form of a site-specific 28 vesting plan involved in accordance with subsection (a) of this section. 29 (3) Upon issuance of a building permit, the provisions of G.S. 160D-1111 and 30 G.S. 160D-1115 apply, except that a permit does not expire and shall not be 31 revoked because oft the running oftime while a vested right under this section 32 is outstanding. 33 (4) A right vested as provided in this section terminates at the end of the 34 applicable vesting period with respect to buildings and uses for which no valid 35 building permit applications have been filed. 36 (f) Subsequent Changes Prohibited; Exceptions. 37 (1) A vested right, once established as provided for in this section, precludes any 38 omingsslemdevelemment regulation by a local government which would 39 change, alter, impair, prevent, diminish, or otherwise delay the development 40 or use of the property as set forth in an approved site-specific vesting plan, 41 except under one or more of the following conditions: 42 a. With the written consent of the affected landowner. 43 b. Upon findings, by ordinance after notice and an evidentiary hearing, 44 that natural or man-made hazards on or in the immediate vicinity of 45 the property, if uncorrected, would pose a serious threat to the public 46 health, safety, and welfare if the project were to proceed as 47 contemplated in the site-specific vesting plan. 48 C. To the extent that the affected landowner receives compensation for 49 all costs, expenses, and other losses incurred by the landowner, 50 including, but not limited to, all fees paid in consideration ofi financing, 51 and all architectural, planning, marketing, legal, and other consulting Page 4 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 fees incurred after approval by the local government, together with 2 interest as provided under G.S. 160D-106. Compensation shall not 3 include any diminution in the value of the property which is caused by 4 the action. 5 d. Upon findings, by ordinance after notice and an evidentiary hearing, 6 that the landowner or the landowner's representative intentionally 7 supplied inaccurate information or made material misrepresentations 8 that made a difference in the approval by the local government of the 9 site-specific vesting plan or the phased development plan. 10 e. Upon the enactment or promulgation of a State or federal law or 11 regulation that precludes development as contemplated in the 12 site-specific vesting plan or the phased development plan, in which 13 case the local government may modify the affected provisions, upon a 14 finding that the change in State or federal law has a fundamental effect 15 on the plan, by ordinance after notice and an evidentiary hearing. 16 (2) The establishment of a vested right under this section dees-met-preelade 17 precludes the application of overlay zoning or other development regulations 18 which impose additional requirements but do not affect the allowable type or 19 intensity of use, or ordinances or regulations which are general in nature and 20 are applicable to all property subject to development regulation by a local 21 government, including, but not limited to, building, fire, plumbing, electrical, 22 and mechanical codes. Otherwise applicable new development regulations 23 become effective with respect to property which is subject to a site-specific 24 vesting plan upon the expiration or termination of the vesting rights period 25 provided for in this section. 26 (3) Notwithstanding any provision of this section, the establishment ofa vested 27 right does not preclude, change, or impair the authority of a local government 28 to adopt and enforce development regulations governing meneenferming 29 rmomsatoise 30 31 SECTION 6. Article 1 of Chapter 160D of the General Statutes is amended by 32 adding a new section to read: 33 "S160D-108.2. Nonconformities. 34 (a) Amendments in land development regulations are not applicable or enforceable 35 without the written consent of the owner with regard to a nonconformity. All of the following 36 shall apply to vested rights in a nonconformity established under this section: 37 (1) The establishment of a vested right under this section does not preclude 38 vesting under one or more other provisions ofl law or vesting by application of 39 common law principles. 40 (2) A vested right, once established as provided for in this section or by common 41 law, precludes any action by a local government that would change, alter, 42 impair, prevent, diminish, or otherwise delay the development or use of the 43 property allowed by applicable development regulations. except where a 44 change in State or federal law mandating local government enforcement 45 occurs after the nonconformity was established that has a fundamental and 46 retroactive effect on the development or use. 47 (3) G.S. 160D-108(h) shall apply to the claiming ofnonconformities. 48 (4) Unless otherwise specified by this section or another statute. a nonconformity 49 may continue until intentionally: and voluntarily discontinued. 50 (b) The statutory vesting period granted by this section for a nonconformity expires ifthe 51 nonconformity is intentionally and voluntarily discontinued for a period of not less than 24 House Bill 765-Second Edition Page 5 General Assembly Of North Carolina Session 2025 1 consecutive months. The 24-month discontinuance period shall be automatically tolled during 2 any oft the following events: 3 (1) The pendency of any board of adjustment proceeding or civil action in a State 4 or federal court regarding the validity of the use of the property or the 5 existence of the statutory vesting period granted by this section. 6 The pendency ofa any litigation involving use oft the property that is the subject 7 ofthe vesting. 8 The duration of any emergency declaration issued under G.S. 166A-19.20 or 9 G.S. 166A-19.22 for which the defined emergency area includes the property, 10 in whole or in part. 11 (c) Reconstruction, re-establishment, repair, and maintenance of a nonconformity shall 12 be allowed by right provided the nonconformity is not extended. expanded, enlarged, increased, 13 or intensified by the reconstruction, re-establishment, repair, or maintenance. 14 a This section shall not apply to G.S. 160D-912 and G.S. 160D-912.1." 15 SECTION 7. G.S. 160D-109 reads as rewritten: 16 "S 160D-109. Conflicts of interest. 17 (a) Governing Board. - A; governing board member shall not participate in or vote on any 18 legislative decision regarding a development regulation adopted pursuant to this Chapter where 19 the-one or more of the following apply: 20 - The outcome of the matter being considered is reasonably likely to have a 21 direct, substantial, and readily dentifiable financial impact on the member.A 22 eveminghardmamherastwewyaaming-meiemHFw 23 2) The landowner of the property subject to a rezoning petition or the applicant 24 for a text amendment is a person with whom the member has a close familial, 25 business, or other associational relationship. 26 (3) The member has expressed or holds a fixed opinion prior to the hearing on the 27 matter that appears not susceptible to change. 28 (4) The member has undisclosed ex parte communication about the matter. 29 (b) Appointed Boards. - Members of appointed boards shall not participate in or vote on 30 any advisory or legislative decision regarding a development regulation adopted pursuant to this 31 Chapter where the-one or more of the following apply: 32 The outcome of the matter being considered is reasonably likely to have a 33 direct, substantial, and readily identifiable financial impact on the member. 34 Amappinahundmemkeryaamyamingammammifhe 35 The landowner of the property subject to a rezoning petition or the applicant 36 for a text amendment is a person with whom the member has a close familial, 37 business, or other associational relationship. 38 The member has expressed or holds a fixed opinion prior to the hearing on the 39 matter that appears not susceptible to change. 40 (4) The member has undisclosed ex parte communication about the matter. 41 (c) Administrative Staff. Ne-If a staff member has a conflict of interest under this 42 subsection, the administrative decision shall be assigned to the supervisor oft the staff member or 43 such other staff member as may be designated by the development regulation. Astaff member 44 shall noti make a final decision on an administrative decision required by this Chapter ifthe-where 45 one or more oft the following apply: 46 (1) Theoutcome of that administrative decision would have a direct, substantial, 47 and readilyi identifiable financial impact on the staff memberorifaemembet. 48 The applicant or other person subject to that administrative decision is a 49 person with whom the staff member has a close familial, business, or other 50 associational relationahip-1fa-siaffmemherhasa-emdietofimteres-under 51 hissetien,the-desisiomshalbesignedie-hesper-iserefhesialfperson Page 6 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 1 ersueh-otherstaftpersesas-may-bedesigmatedbythedevelepmepmentreguation 2 orotherordimanee-Ne 3 The staff member shall-be-is financially interested or employed by a business 4 that is financially interested in a development subject to regulation under this 5 Chapter unless the staff member is the owner of the land or building involved. 6 Ne 7 (4) Thestaff membermember.or. other individual or an employee of a company 8 contracting with a local government to provide staff support-shal-emgage 9 support, is engaging in any-work that is inconsistent with his or her duties or 10 with the interest of the local government, as determined by the local 11 government. 12 13 SECTION 8. G.S. 160D-203 reads as rewritten: 14 "$160D-203. Split jurisdiction. 15 (a) If aj parcel ofland lies within the planning and development regulation jurisdiction of 16 more than one local evermetyferthepupeseseFHsCNapef,le-eargeyeamenis-mey 17 by-mufua-agreemenepusuante-Ariclee20aFChaper-169A-eFhe-Gem-sith 18 he-witen-censent-osemkeflhe-landowne,r-tsigreehsivephnmingamae-develepment-reguiation 19 uridietien-underthisChpererilheemieparehteamnyemeeflhwe-eaigents-Swehx 20 iual-agreement-government, the following shall apply: 21 (1) If only one local government has the ability to provide water and sewer 22 services to the parcel at the time a site plan for the parcel is submitted, the 23 local government that has the ability to provide public water and sewer 24 services shall have planning and development regulation jurisdiction over the 25 entire parcel. 26 (2) Ifall oft the local governments have the ability to either provide public water 27 services or public sewer services to the parcel, but not both, at the time a site 28 plan for the parcel is submitted, the landowner may designate which local 29 government's planning and development regulations shall apply to the land. 30 Ifall or none oft the local governments have the ability to provide public water 31 and sewer services to the parcel at the time a site plan for the parcel is 32 submitted, the local government where the majority of the parcel is located 33 shall have jurisdiction over the land. 34 (b) The jurisdiction established by this section shall only be applicable to development 35 regulations and shall not affect taxation or other nonregulatory matters.The-Hgreement 36 shal-beevidemedbyerschatiem-emmalyandeplalhyenahrgevemingbeuiandandrecerdedwith 37 the-registerofdeedsin-theceunty-where-the-preperty-is-eeatedwithm-4-days-efthe-adeption 38 arsrgimraltw 39 SECTION9. G.S. 160D-402, as amended by S.L. 2024-49, reads as rewritten: 40 "S 160D-402. Administrative staff. 41 (a) Authorization. Local governments may appoint administrators, inspectors, 42 enforcement officers, planners, technicians, and other staff to develop, administer, and enforce 43 development regulations authorized by this Chapter. Local governments shall designate at least 44 one staff member charged with making determinations under that local government's 45 development regulations for purposes of G.S. 160D-703. 46 (b) Duties. - Duties assigned to staff may include, but are not limited to, drafting and 47 implementing plans and development regulations to be adopted pursuant to this Chapter; 48 determining whether applications for development approvals are complete; receiving and 49 processing applications for development approvals; providing notices of applications and 50 hearings; making decisions and determinations regarding development regulation 51 implementation; determining whether applications for development approvals meet applicable House Bill 765-Second Edition Page 7 General Assembly Of North Carolina Session 2025 1 standards as established by law and local ordinance; conducting inspections; issuing or denying 2 certificates of compliance or occupancy; enforcing development regulations, including issuing 3 notices of violation, orders to correct violations, and recommending bringing judicial actions 4 against actual or threatened violations; keeping adequate records; and any other actions that may 5 be required in order adequately to enforce the laws and development regulations under their 6 jurisdiction. A development regulation may require that designated staff members take an oath 7 ofc office. The local government shall have the authority to enact ordinances, procedures, and fee 8 schedules relating to the administration and the enforcement of this Chapter. The administrative 9 and enforcement provisions related to building permits set forth in Article 11 ofthis Chapter shall 10 be followed for those permits. 11 (c) Alternative Local Government Staff Arrangements. - A local government may enter 12 into contracts with another city, county, or combination thereof under which the parties agree to 13 create a joint staff for the enforcement of State and local laws specified in the agreement. The 14 governing boards of the contracting parties may make any necessary appropriations for this 15 purpose. 16 In lieu ofjoint staff, a governing board may designate staff from any other city or county to 17 serve as a member ofits staffwith the approval ofthe governing board ofthe other city or county. 18 A staff member, if designated from another city or county under this seetien,subsection, shall, 19 while exercising the duties of the position, be considered an agent of the local government 20 exercising those duties. The governing board of one local government may request the governing 21 board of a second local government to direct one or more oft the second local government's staff 22 members to exercise their powers within part or all of the first local government's jurisdiction, 23 and they shall thereupon be empowered to do SO until the first local government officially 24 withdraws its request in the manner provided in G.S. 160D-202. 25 The contract or designation of staff under this subsection shall specify at least one individual 26 designated as charged with making determinations under each local government's development 27 regulations for purposes of G.S. 160D-703. 28 (cl) Alternative Contract Staff Arrangements. - A local government may contract with an 29 individual, company, council of governments, regional planning agency, metropolitan planning 30 organization, or rural planning agency to designate an individual who is not a city or county 31 employee to work under the supervision of the local government to exercise the functions 32 authorized by this section. The local government shall have the same potential liability, if any, 33 for inspections conducted by an individual who is not an employee of the local government as it 34 does for an individual who is an employee of the local government. The company or individual 35 with whom the local government contraçts shall have errors and omissions and other insurance 36 coverage acceptable to the local government. The contract shall require at least one individual 37 designated as charged with making determinations under that local government's development 38 regulations for purposes of G.S. 160D-703. 39 (d) Financial Support. - The local government may appropriate for the support of the 40 staff any funds that it deems necessary. It shall have power to fix reasonable fees for support, 41 administration, and implementation of programs authorized by this Chapter-Chapter. and those 42 fees shall not exceed the actual direct and reasonable costs required to support, administer, and 43 implement programs authorized by this Chapter. All fees collected by a building inspection 44 department for the administration and enforcement of provisions set forth in Article 11 of this 45 Chapter shall be used to support the administration and operations of the building inspection 46 department and for no other purposes. When an inspection, for which the permit holder has paid 47 a fee to the local government, is performed by a marketplace pool Code-enforcement official 48 upon request of the State Fire Marshal under G.S. 143-151.12(9)a., the local government shall 49 promptlyreturn to the permit holder the fee collected byt the local government for such inspection. 50 This subsection applies to the following types of inspection: plumbing, electrical systems, Page 8 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 1 general building restrictions and regulations, heating and air-conditioning, and the general 2 construction of buildings." 3 SECTION 10. G.S. 160D-403, as amended by S.L. 2024-49, reads as rewritten: 4 "S 160D-403. Administrative development approvals and determinations. 5 (a) Development Approvals. - To the extent consistent with the scope of regulatery 6 development regulation authority granted by this Chapter, no person shall commence or proceed 7 with development without first securing any required development approval from the local 8 government with jurisdiction over the site of the development. A development approval shall be 9 in writing and may contain a provision requiring the development to comply with all applicable 10 State and local laws. A local government may issue development approvals in print or electronic 11 form. Any development approval issued exclusively in electronic form shall be protected from 12 further editing once issued. Applications for development approvals may be made by the 13 landowner, a lessee or person holding an option or contract to purchase or lease land, or an 14 authorized agent ofthe landowner. An easement holder may also apply for development approval 15 for sueh-the development as is authorized by the easement. 16 (al) Time Period for Approval. - Within 14 calendar days of the filing of an application 17 for a development approval, a local government or its designated administrative staff, as 18 described under G.S. 160D-402, shall (i) determine whether the application is complete and 19 notify the applicant of the application's completeness and, (ii) if the local government or its 20 designated administrative staff determines the application is incomplete, specify all of the 21 deficiencies in the notice to the applicant. The applicant may file an amended application or 22 supplemental information to cure the deficiencies identified by the local government or its 23 designated administrative staff for a completeness review, which shall be completed within 14 24 calendar days after receiving an amended application or supplemental application from the 25 applicant. Upon the date the application is deemed complete, the local government or its 26 designated administrative staff shall issue a receipt letter or electronic response stating that the 27 application is complete and that a 90-calendar day review period has started as ofthat date. The 28 local government shall approve or deny the application within 90 calendar days of the date the 29 application was deemed complete by the local government or its designated administrative staff, 30 except that if the applicant requests a continuance of the application, the review period shall be 31 tolled for the duration of any continuance. The time period for review may be extended only by 32 agreement with the applicant if the application cannot be reviewed within the specified time 33 limitation due to circumstances beyond the control of the local government. The extension shall 34 not exceed six months. Failure of the local government or its designated administrative staff to 35 act before the expiration of the time period allowed for review shall constitute an approval oft the 36 application, and the local government shall issue a written approval upon demand by the 37 applicant. 38 39 (c) Duration of Development Approval. - Unless a different period is specified by this 40 Chapter or other specific applicable law, including for a development agreement, a development 41 approval issued pursuant to this Chapter expires one year after the date of issuance if the work 42 authorized by the development approval has not been substantially commenced. Local 43 development regulations may provide for development approvals of shorter duration for 44 temporary land uses, special events, temporary signs, and similar development. Local 45 development regulations may also provide for development approvals of longer duration for 46 specified types of development approvals. Nothing in this subsection limits any vested rights 47 secured under GS-169D-108erGS-169P-108GS. 160D-108. 160D-108.1 1,or 160D-108.2. 48 49 SECTION 11. G.S. 160D-605(a) reads as rewritten: 50 "(a) Plan Consistency. - When adopting or rejecting any zoning text or map amendment, 51 the governing board shall approve a brief statement describing whether its action is consistent or House Bill 765-Second Edition Page 9 General Assembly Of North Carolina Session 2025 1 inconsistent with an adopted comprehensive or land-use plan. The requirement for a plan 2 consistency statement may also be met by a clear indication in the minutes ofthe governing board 3 that at the time of action on the amendment the governing board was aware of and considered 4 the planning board's recommendations and any relevant portions of an adopted comprehensive 5 or land-use plan. If a zoning map amendment is adopted and the action was deemed inconsistent 6 with the adopted plan, the zoning amendment has the effect of also amending any future land-use 7 map in the approved plan, and no additional request or application for a plan amendment is 8 required. A plan amendment and a zoning amendment may be considered concurrently. The plan 9 consistency statement is net-subject to judicial review. If a zoning map amendment qualifies as 10 a' llarge-scale rezoning" under G.S. 160D-602(b), the governing board statement describing plan 11 consistency may address the overall rezoning and describe how the analysis and policies in the 12 relevant adopted plans were considered in the action taken.' I 13 SECTION 12. G.S. 160D-702 reads as rewritten: 14 "S 160D-702. Grant of power. 15 (a) A local government may adopt zoning regulations. Except as provided in subsections 16 (b) and (c) of this section, a zoning regulation may regulate and restrict the height, number of 17 stories, and size of buildings and other structures; the percentage of lots that may be occupied; 18 the size ofyards, courts, and other open spaces; the density of population; the location and use 19 of buildings, structures, and land. A local government may regulate development, including 20 floating homes, over estuarine waters and over lands covered by navigable waters owned by the 21 State pursuant to G.S. 146-12. A zoning regulation shall provide density credits or severable 22 development rights for dedicated rights-of-way pursuant to G.S. 136-66.10 or G.S. 136-66.11. 23 Where appropriate, a zoning regulation may include requirements that street and utility 24 rights-of-way be dedicated to the public, that provision be made of recreational space and 25 facilities, and that performance guarantees be provided, all to the same extent and with the same 26 limitations as provided for in G.S. 160D-804 and G.S. 160D-804.1. 27 (b) Any regulation relating to building design elements adopted under this Chapter may 28 not be applied to any structures subject to regulation under the North Carolina Residential Code 29 except under one or more of the following circumstances: 30 (1) The structures are located in an area designated as a local historic district 31 pursuant to Part 4 of Article 9 of this Chapter. 32 (2) The structures are located in an area designated as a historic district on the 33 National Register ofl Historic Places. 34 (3) The structures are individually designated as local, State, or national historic 35 landmarks. 36 (4) The regulations are directly and substantially related to the requirements of 37 applicable safety codes adopted under G.S. 143-138. 38 (5) Where the regulations are applied to manufactured housing in a manner 39 consistent with G.S. 160D-908 and federal law. 40 (6) Where the regulations are adopted as a condition of participation in the 41 National Flood Insurance Program. 42 Regulations prohibited by this subsection may not be applied, directly or indirectly, in any 43 zoning district or conditional distict-umle-vehamtailywmswdeby.ee-owneis-eFal-he 44 popenyiowhiahhueregeiwpaatmdade-wafhepesa 45 ahingaméahaiaingerowrewripmei-pvak 46 district, nor may any such regulations be applied indirectly as part of a review pursuant to 47 G.S. 160D-604 or G.S. 160D-605 of any proposed zoning amendment for consistency with an 48 adopted comprehensive plan or other applicable officially adopted plan. 49 For the purposes of this subsection, the phrase "building design elements" means exterior 50 building color; type or style of exterior cladding material; style or materials of roof structures or 51 porches; exterior nonstructural architectural ornamentation; location or architectural styling of Page 10 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 1 I windows and doors, including garage doors; the number and types of rooms; and the interior 2 layout of rooms. The phrase "building design elements" does not include any of the following: 3 (i) the height, bulk, orientation, or location of a structure on a zoning lot, (ii) the use ofbuffering 4 or screening to minimize visual impacts, to mitigate the impacts of light and noise, or to protect 5 the privacy of neighbors, or (iii) regulations adopted pursuant to this Article governing the 6 permitted uses of land or structures subject to the North Carolina Residential Code. 7 Nothing in this subsection affects the validity or enforceability of private covenants or other 8 contractual agreements among property owners relating to building design elements. 9 (c) A zoning or other development regulation shall not do any of the following: 10 (1) Set a minimum width, length, or square footage of any structures subject to 11 regulation under the North Carolina Residential Code. 12 (2) Require a-or otherwise specify the size ofparking space-spaces. placement of 13 parking spaces, configuration of parking spaces, or allocation of parking 14 spaces to be lagerhanetwideles-thepakig-pase 15 deigparhameP, paralel,er-diagomal-parkinggreater than those 16 required by the Americans with Disabilities Act. 17 (3) Require additional fire apparatus access roads into developments of one- or 18 two-family dwellings that are not in compliance with the required number of 19 fire apparatus access roads into developments ofone- or two-family dwellings 20 set forth in the North Carolina Fire Cede-eflhe-Nerth-Cerehma-Residemial 21 Cede-ferOme-andwe-Famy-Dwelings-Code. 22 (4) Except as provided under G.S. 160A-307, set a minimum width. length, or 23 square footage for driveways within a development unless the driveway abuts 24 aj public road. This subdivision shall not be construed to expand, diminish, or 25 alter the Department of Transportation's authority to regulate driveways 26 adjacent to public roads owned by the State. 27 (5) Except as provided in this subdivision, set design standards for public roads 28 within a development in excess of those required by the Department of 29 Transportation. A city may set design standards for public roads within a 30 development in excess of those required by the Department of Transportation 31 if the city is financially responsible for the cost of the excess and accepts 32 ownership and maintenance responsibility for the public road prior to, or in 33 conjunction with, site plan approval. Confirmation of conformity of the 34 improvements consistent with the city's design standards under this subsection 35 shall be conducted consistent with G.S. 160D-804. 1(1c). Upon confirmation 36 that the improvements have been made consistent with G.S. 160D-804.1(1c),. 37 the city shall record with the register of deeds a plat evidencing the city's 38 ownership of the public road. 39 (6) Require installation of sidewalks or improvement of existing sidewalks for 40 any residential, commercial, or school property unless the sidewalk is either 41 ofthe following: 42 a. Connected to an existing sidewalk. 43 b. Will be connected to a planned adjacent sidewalk that the local 44 government believes. based on a development approval, will be 45 constructed within two years oft the residential, commercial, or school 46 property site plan approval. 47 For cities with a population of 125,000 or more, according to the most recent 48 decennial federal census, establish setback or buffer yard requirements for a 49 multifamily development that exceeds 15 units per acre. 50 (d) In exercising its authority under this section, a local government shall support its 51 determinations by demonstrating there is a rational and substantial relationship between the House Bill 765-Second Edition Page 11 General Assembly Of North Carolina Session 2025 1 zoning map. zoning regulations, or zoning amendment and the health, safety, and welfare of the 2 public through finding of facts and information, other than mere personal preferences or 3 speculation. that a reasonable person would accept in support of a conclusion. 4 (e) For purposes of this section, the term "public road" shall mean any road, street, 5 highway, thoroughfàre, or other way of passage that is owned and maintained by a city or the 6 Department of Transportation. M 7 SECTION 13. G.S. 160D-703 reads as rewritten: 8 "S 160D-703. Zoning districts. 9 (a) Types of Zoning Districts. A-Except as provided in subsection (al) of this section, 10 alocal government may divide its territorial jurisdiction into zoning districts of any number, 11 shape, and area deemed best suited to carry out the purposes ofthis Article. Within those districts, 12 it may regulate and restrict the erection, construction, reconstruction, alteration, repair, or use of 13 buildings, structures, or. land. Zoning-By illustration, zoning districts may inchade,butaremotbe 14 lmitedter-include any of the following: 15 (1) Conventional districts, in which a variety ofuses are allowed as permitted uses 16 or uses by right and that may also include uses permitted only with a special 17 use permit. 18 (2) Conditional districts, in which site plans or individualized development 19 conditions are imposed. 20 (3) Form-based districts, or development form controls, that address the physical 21 form, mass, and density of structures, public spaces, and streetscapes. 22 (4) Overlay districts, in which different requirements are imposed on certain 23 properties within one or more underlying conventional, conditional, or 24 form-based districts. 25 (5) Districts allowed by charter. 26 (al) Residential Zoning Districts Classified Based on Density. - A local government shall 27 classify residential zoning districts based on the number of dwelling units allowed per acre. A 28 local government shall not classify residential zoning districts based on the minimum lot size 29 allowed in the district. 30 (a2) Permitted Uses in Counties. In areas zoned for residential use, a county zoning 31 regulation shall allow the following uses by right in an area with public sewer connections: 32 (1) In a county with a population of 49,999 or less, according to the most recent 33 decennial federal census, the siting of no fewer than four dwelling units per 34 acre. 35 2 2) Ina county with a population between 50,000 and 274.999, according to the 36 most recent decennial federal census, the siting of no fewer than five dwelling 37 units per acre. 38 Ina county with aj population of275.000 or more, according to the most recent 39 decennial federal census, the siting of no fewer than six dwelling units per 40 acre. 41 (a3) Permitted Uses in Cities. = A city zoning regulation shall allow the following uses by 42 right in an area with public sewer connections: 43 (1) In areas zoned for residential use in a city with a population of 19.999 or less. 44 according to the most recent decennial federal census. the siting of no fewer 45 than four dwelling units per acre. 46 In areas zoned for residential use in a city with a population between 20.000 47 and 124.999. according to the most recent decennial federal census. the siting 48 ofi no fewer than five dwelling units per acre. 49 (3) In areas zoned for residential use in a city with a population of 125.000 or 50 more, according to the most recent decennial federal census, the siting of no Page 12 House Bill 765-Second Edition General Assembly Ofl North Carolina Session 2025 fewer than six dwelling units per acre. The minimum dwelling unit 2 requirement may be met by duplexes, triplexes, and quadruplexes. 3 (4) In areas zoned for non-agricultural commercial, business, or industrial use in 4 a city with a population of 125,000 or more, according to the most recent 5 decennial federal census, the siting of buildings and structures subject to the 6 North Carolina Residential Code and multifamily housing structures with 7 more than four residential dwelling units, with a maximum height restriction 8 of not less than 60 feet. 9 (a4) Exemption from Local Design Standards and Buffer Yards. In a city with a 10 population of 125,000 or more, according to the most recent decennial federal census, buildings 11 and structures subject to the North Carolina Residential Code and uses allowable under 12 subdivision (3) or (4) of subsection (a3) of this section shall not be subject to either of the 13 following: 14 Local design standards, except those adopted as a condition of participation 15 in the National Flood Insurance Program. 16 L Buffer yards or other landscape buffering regulations. 17 (a5) Applicability of Permitted Uses. = Subsections (a2) and (a3) of this section do not 18 apply to land used for a bona fide farm purpose as described in G.S. I 160D-903 or an open space 19 land purpose as described in G.S. 160D-1307. 20 (b) Conditional Districts. Property may be placed in a conditional district only in 21 response to a petition by all owners of the property to be included. Specific conditions may be 22 proposed by the petitioner or the local government or its agencies, but only those conditions 23 approved by the local government and consented to by the petitioner in writing may be 24 incorporated into the zoning regulations. Uaiwrwtetyleyepatiwerr-iine 25 Notwithstanding any other provision of law,in the exercise of the authority granted by this 26 section, a local government may not (i) require, enforce, or incorporate into the zoning 27 egalationsanycenditemersgairementnskaterizmébyeherwisepisabielaw-tegulations 28 any condition, requirement, or deed restriction not specifically authorized by law, (ii) require, 29 enforce, or incorporate into the zoning regulations any condition or requirement that the courts 30 have held to be unenforceable if imposed directly by the local government, or (ii) accept any 31 offer by the petitioner to consent to any condition not specifically authorized by law, including, 32 without limitation, taxes, impact fees, building design elements within the scope of 33 G.S. 160D-702(b), driveway-related improvements in excess of those allowed in 34 G.S. 136-18(29) and G.S. 160A-307, or other unauthorized limitations on the development or 35 use of land. This subsection shall also apply to the approval of any site plan, development 36 agreement, conditional zoning permit, or any other instrument under this Chapter. Conditions 37 and site-specific standards imposed in a conditional district shall be limited to those that address 38 the conformance of the development and use of the site to local government ordinances, plans 39 adopted pursuant to G.S. 160D-501, or the impacts reasonably expected to be generated by the 40 development or use of the site. The zoning regulation may provide that defined minor 41 modifications in conditional district standards that do not involve a change in uses permitted or 42 the density of overall development permitted may be reviewed and approved administratively. 43 Any other modification of the conditions and standards in a conditional district shall follow the 44 same process for approval as are applicable to zoning map amendments. If multiple parcels of 45 land are subject to a conditional zoning, the owners of individual parcels may apply for 46 modification of the conditions SO long as the modification would not result in other properties 47 failing to meet the terms of the conditions. Any modifications approved apply only to those 48 properties whose owners petition for the modification. 49 (b1) Limitations. For parcels where multifamily structures are an allowable use, a local 50 government may not impose a harmony requirement for permit approval if the development House Bill 765-Second Edition Page 13 General Assembly Of North Carolina Session 2025 1 contains affordable housing units for families or individuals with incomes below eighty percent 2 (80%) ofthe area median income. 3 (c) Uniformity Within Districts. - Except as authorized by the foregoing, all zoning 4 regulations shall be uniform for each class or kind of building throughout each district but the 5 zoning regulations in one district may differ from those in other districts. 6 (d) Standards Applicable Regardless of District. - A zoning regulation or unified 7 development ordinance may also include development standards that apply uniformly 8 jurisdiction-wide rather than being applicable only in particular zoning districts. 9 (e) Staff Approvals. - Development approvals for a development that is a permitted use 10 in the zoning district where the development is located shall be made only by the designated staff 11 member as described in G.S. 160D-402. 12 Basis for Conditional District. - In exercising its authority under subsection (b) of this 13 section, a local government shall support its determinations with facts and information, other 14 than mere personal preferences or speculation, that a reasonable person would accept in support 15 ofa conclusion there is a rational and substantial relationship between the conditional district and 16 the health, safety, and welfare oft the public. " 17 SECTION 14. Article 7 of Chapter 160D of the General Statutes is amended by 18 adding a new section to read: 19 & 160D-707. Review period for rezoning decisions. 20 Within 14 calendar days of the filing of an application for amendment of a zoning map or 21 zoning regulations. a local government or its designated administrative staff, as described under 22 G.S. 160D-402, shall (i) determine whether the application is complete and notify the applicant 23 oft the application's completeness and, (ii)ift the local government or its designated administrative 24 staff determines the application is incomplete, specify all the deficiencies in the notice to the 25 applicant. The applicant may file an amended application or supplemental information to cure 26 the deficiencies identified by the local government or its designated administrative staff for a 27 completeness review, which shall be completed within 14 calendar days after receiving an 28 amended application or supplemental application from the applicant. Upon the date the 29 application is deemed complete, the local government or its designated administrative staff shall 30 issue a receipt letter or electronic response stating that the application is complete and that a 31 90-calendar day review period has started as of that date. The local government shall approve or 32 deny the application within 90 calendar days of the date the application was deemed complete 33 byt the local government or its designated administrative staff. except that ifthe applicant requests 34 a continuance of the application, the review period shall be tolled for the duration of any 35 continuance. The time period for review may be extended only by agreement with the applicant 36 if the application cannot be reviewed within the specified time limitation due to circumstances 37 beyond the control of the local government. The extension shall not exceed six months. Failure 38 of the local government or its designated administrative staff to act before the expiration oft the 39 time period allowed for review shall constitute an approval of the application, and the local 40 government shall issue a written approval upon demand by the applicant. " 41 SECTION 15. G.S. 160D-803 reads as rewritten: 42 "S 160D-803. Review process, filing, and recording of subdivision plats. 43 (a) Any subdivision regulation adopted pursuant to this Article shall contain provisions 44 setting forth the procedures and standards to be followed in granting or denying approval of a 45 subdivision plat prior to its registration. 46 (b) A subdivision regulation shall provide that the following agencies be given an 47 opportunity to make recommendations concerning an individual subdivision plat before the plat 48 is approved: 49 (1) The district highway engineer as to proposed State streets, State highways, 50 and related drainage systems. Page 14 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 1 (2) The county health director or local public utility, as appropriate, as to 2 proposed water or sewerage systems. 3 (3) Any other agency or official designated by the governing board. 4 (c) The subdivision regulation may-shall provide that final decisions on preliminary plats 5 and final plats are administrative and to be made by anyeftheelewing: 6 (1) Thegevemingboard: 7 (2) the-gevermingbearden-ecemRendalemefadessigmated-bedy- 8 (3) A-desigmatedplanmimgbeard,teehneatrevewecemiteeefleea-geverment 9 saffmembers,erothereherdeignatekedyerstaltpesen: 10 IFhe-final-deisienemasublivisiomplatisadminisiaive,thedeisiom-may-beassignedtea 11 staff person or committee comprised entirely of staff persons, and notice oft the decision shall be 12 as provided by G.S. 160D-403(b).-Hfthe-fmal-deeisier-emesabdivisie-platisasi-judicial,the 13 deeision-shal-be-asigned-e-thegevemingboard,theplamming-board,the-board-efadustment, 14 erelherbeardappeintelaedprsasttesthinG:S-169P-496 15 shallapply 16 (d) After the effective date that a subdivision regulation is adopted, no subdivision within 17 al local government's planning and development regulation jurisdiction shall be filed or recorded 18 until it shall have been submitted to and approved by hegevemingberdereprepraiebodya 19 staff person or committee comprised entirely of staff persons, as specified in the subdivision 20 regulation, and until this approval shall have been entered on the face of the plat in writing by an 21 authorized representative of the local government. Within 10 days after approving a preliminary 22 or final plat, an authorized representative oft the local government shall enter the approval on the 23 face oft the preliminary or final plat. The review officer, pursuant to G.S. 47-30.2, shall not certify 24 a subdivision plat that has not been approved in accordance with these provisions nor shall the 25 clerk of superior court order or direct the recording of a plat if the recording would be in conflict 26 with this section. 27 (e) Notwithstanding G.S. 160D-403(c). once approval has been entered on the face ofthe 28 plat in accordance with this section, the approval shall be valid and not expire unless the 29 landowner applies for, and receives, a subsequent development approval." " 30 SECTION 16. G.S. 160D-912 reads as rewritten: 31 "S 160D-912. Outdoor advertising. 32 (a) As used in this section, the term off-premises outdoor advertising" includes 33 off-premises outdoor advertising signs visible from the main-traveled way of any road. 34 (b) A local government may require the removal of an off-premises outdoor advertising 35 sign-that is oscenfomingimders-er4-pa-enimense-not in compliance with a development 36 regulation and may: regulate the use of off-premises outdoor advertising within its planning and 37 development regulation jurisdiction in accordance with the applicable provisions of this Chapter 38 and subject to G.S. 136-131.1 and G.S. 136-131.2. 39 (c) A local government shall give written notice of its intent to require removal of 40 off-premises outdoor advertising not in compliance with a development regulation by sending a 41 letter by certified mail to the last known address of the owner of the off-premises outdoor 42 advertising and the owner of the property on which the off-premises outdoor advertising is 43 located. 44 (d) No local government may enact or amend an ordinance of general applicability to 45 require the removal of any memsenfemming-lawfuly erected off-premises outdoor advertising 46 sign-that is not in compliance with a development regulation without the payment of monetary 47 compensation to the owners oft the off-premises outdoor advertising, except as provided below. 48 The payment of monetary compensation is not required if: 49 (1) The local government and the owner of the emsemmingotipremiss 50 outdoor advertising enter into a relocation agreement pursuant to subsection 51 (g) of this section. House Bill 765-Second Edition Page 15 General Assembly Of North Carolina Session 2025 1 (2) The local government and the owner of the cncmagotpremiss 2 outdoor advertising enter into an agreement pursuant to subsection (k) ofthis 3 section. 4 (3) The off-premises outdoor advertising is determined to be a public nuisance or 5 detrimental to the health or safety of the populace. 6 (4) The removal is required for opening, widening, extending, or improving 7 streets or sidewalks, or for establishing, extending, enlarging, or improving 8 any of the public enterprises listed in G.S. 160A-311, and the local 9 government allows the off-premises outdoor advertising to be relocated to a 10 comparable location. 11 (5) The off-premises outdoor advertising is subject to removal pursuant to 12 statutes, ordinances, or regulations generally applicable to the demolition or 13 removal of damaged structures. 14 (d1) -sahetier-Subiecion (d) of this section shall be construed subject to and 15 without any reduction in the rights afforded to owners of off-premises outdoor advertising sigas 16 along interstate and federal-aid primary highways in this State as provided in Article-13-ef 17 Chapter 136 of the General Statutes. Nothing in this section shall be construed to diminish the 18 rights given to owners or operators of nonconformities as set forth in G.S. 160D-108 and 19 G.S. 160D-108.2 or the rights of owners or operators of outdoor advertising signs in Article 11 20 of Chapter 136 oft the General Statutes. 21 (e) Monetary compensation is the fair market value of the off-premises outdoor 22 advertising in place immediately prior to its removal and without consideration of the effect of 23 the ordinance or any diminution in value caused by the ordinance requiring its removal. Monetary 24 compensation shall be determined based on the following: 25 (1) The factors listed in G.S. 105-317.1(a). 26 (2) The listed property tax value of the property and any documents regarding 27 value submitted to the taxing authority. 28 (f) Ift the parties are unable to reach an agreement under subsection (e) of this section on 29 monetary compensation to be paid by the local government to the owner of the neneenforming 30 off-premises outdoor advertising sign-for its removal and the local government elects to proceed 31 with the removal of the sign,off-premises outdoor advertising, the local government may bring 32 an action in superior court for a determination of the monetary compensation to be paid. In 33 determining monetary compensation, the court shall consider the factors set forth in subsection 34 (e) of this section. Upon payment of monetary compensation for the sign,off-premises outdoor 35 advertising, the local government shall own the sigm-off-premises outdoor advertising. 36 (g) In lieu of paying monetary compensation, a local government may enter into an 37 agreement with the owner of emonconforming-oft-premises outdoor advertising sign-to relocate 38 and reconstruct the siga-off-premises: outdoor advertising. The agreement shall include the 39 following: 40 (1) Provision for relocation of the sign-oflt-premises outdoor advertising to a site 41 reasonably comparable to or better than the existing location. In determining 42 whether a location is comparable or better, the following factors shall be taken 43 into consideration: 44 a. The size and format of the sign-off-premises: outdoor advertising. 45 b. The characteristics ofthe proposed relocation site, including visibility, 46 traffic count, area demographics, zoning, and any uncompensated 47 differential in the sign-ewner's-cost to the owner of the off-premises 48 outdoor advertising to lease the replacement site. 49 C. The timing of the relocation. Page 16 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 1 (2) Provision for payment by the local government of the reasonable costs of 2 relocating and reconstructing the sign,-off-premises outdoor advertising 3 including the following: 4 a. The actual cost ofremoving the sigm-off-premises outdoor advertising. 5 b. The actual cost of any necessary repairs to the real property for 6 damages caused in the removal of the sign-off-premises outdoor 7 advertising. 8 C. The actual cost ofinstalling the sigm-offpremises outdoor advertising 9 at the new location. 10 d. An amount of money equivalent to the income received from the lease 11 of the sign-of-premises outdoor advertising for a period of up to 30 12 days if income is lost during the relocation of the sign-offpremises 13 outdoor advertising. 14 (h) For the purposes of relocating and reconstructing a-ROReOnOFHRg-ott-premises 15 outdoor advertising sign-pursuant to subsection (g) ofthis section, a local government, consistent 16 with the welfare and safety of the community as a whole, may adopt a resolution or adopt or 17 modify its ordinances to provide for the issuance of a permit or other approval, including 18 conditions as appropriate, or to provide for dimensional, spacing, setback, or use variances as it 19 deems appropriate. 20 (1) If a local government has offered to enter into an agreement to relocate a 21 eaeabmagolfpremise outdoor advertising Sign-pursuant to subsection (g) of this section 22 and within 120 days after the initial notice byt the local government the parties have not been able 23 to agree that the site or sites offered by the local government for relocation of the sign 24 off-premises outdoor advertising are reasonably comparable to or better than the existing site, 25 the parties shall enter into binding arbitration to resolve their disagreements. Unless a different 26 method of arbitration is agreed upon by the parties, the arbitration shall be conducted by a panel 27 of three arbitrators. Each party shall select one arbitrator, and the two arbitrators chosen by the 28 parties shall select the third member of the panel. The American Arbitration Association rules 29 shall apply to the arbitration unless the parties agree otherwise. 30 () If the arbitration results in a determination that the site or sites offered by the local 31 government for relocation of the ReRCORFeFmingSIgm-oft-premises outdoor advertising are not 32 comparable to orl better than the existing site, and the local government elects to proceed with the 33 removal of the Signoff-premises outdoor advertising, the parties shall determine the monetary 34 compensation under subsection (e) ofthis section to bej paid to the owner ofthe sign-off-premises 35 outdoor advertising. If the parties are unable to reach an agreement regarding monetary 36 compensation within 30 days of the receipt of the arbitrators' determination and the local 37 government elects to proceed with the removal of the sign,off-premises outdoor advertising then 38 the local government may bring an action in superior court for a determination of the monetary 39 compensation to be paid by the local government to the owner for the removal of the sign 40 off-premises outdoor advertising. In determining monetary compensation, the court shall 41 consider the factors set forth in subsection (e) of this section. Upon payment of monetary 42 compensation for the sign,off-premises outdoor advertising, the local government shall own the 43 sign-off-premises outdoor advertising. 44 (k) Notwithstanding the provisions of this section, a local government and an 45 off-premises outdoor advertising sign-owner may enter into a voluntary agreement allowing for 46 the removal of the sign-off-premises outdoor advertising after a set period of time in lieu of 47 monetary compensation. A local government may adopt an ordinance or resolution providing for 48 ai relocation, reconstruction, or removal agreement. 49 L A local government has up to three years from the effective date of an ordinance 50 enacted under this section to pay monetary compensation to the owner of the off-premises House Bill 765-Second Edition Page 17 General Assembly Of North Carolina Session 2025 1 outdoor advertising provided the affected preperty-oft-premises outdoor advertising remains in 2 place until the compensation is paid. 3 (m) This section does not apply to any ordinance in effect on July 1, 2004. A local 4 government may amend an ordinance in effect on July 1, 2004, to extend application of the 5 ordinance to off-premises outdoor advertising located in territory acquired by annexation or 6 located in the extraterritorial jurisdiction of the city. A local government may repeal or amend 7 an ordinance in effect on July 1, 2004, SO long as the amendment to the existing ordinance does 8 not reduce the period of amortization in effect on June 19, 2020. 9 (n) The provisions of this section shall not be used to interpret, construe, alter, or 10 otherwise modify the exercise ofthe power of eminent domain by an entity pursuant to Chapter 11 40A or Chapter 136 of the General Statutes. 12 (o) Nothing in this section shall limit a local government's authority to use amortization 13 as a means of phasing out nonconforming uses other than off-premises outdoor advertising. 1 14 SECTION17. G.S. 160D-912.1 reads as rewritten: 15 "S 160D-912.1. On-premises advertising. 16 (a) As used in this section, the following definitions apply: 17 (1) Monetary compensation. - An amount equal to the sum of (i) the greater of 18 the fair market value of the ensemfomingompemises advertising sign that 19 is not in compliance with a development: regulation in place immediately prior 20 to the removal or the diminution in value of the real estate resulting from the 21 removal of the on-premises advertising sign and (ii) the cost of a new 22 on-premises advertising sign that conforms to the local government's 23 development regulations. 24 (2) On-premises advertising sign. - A sign visible from any local or State road or 25 highway that advertises activities conducted on the property upon which it is 26 located or advertises the sale or lease ofthe property upon which it is located. 27 (3) Reconstruction. Erecting or constructing anew, including any new or 28 modern instrumentalitics, parts, or equipment that were allowed under the 29 local development rules in place at the time the on-premises advertising sign 30 was erected. 31 (b) Notwithstanding any local development regulation to the contrary, a lawfully erected 32 on-premises advertising sign may be relocated or reconstructed within the same parcel SO long 33 as the square footage of the total advertising surface area is not increased, and the on-premises 34 advertising sign complies with the local development Fules-regulations in place at the time the 35 on-premises advertisingsign was erected. The construction work related to the relocation of the 36 lawfully erected on-premises advertising sign shall commence within two years after the date of 37 removal. The local government shall have the burden to prove that the on-premises advertising 38 sign was not lawfully erected. 39 (c) A local government may require the removal of a lawfully erected on-premises 40 advertising sign under a local development regulation only if the local government pays the 41 owner of the on-premises advertising sign monetary compensation for the removal. Upon 42 payment of monetary compensation, the local government shall own the on-premises advertising 43 sign and remove itin a timely manner. 44 (d) Nothing in this section shall be construed to diminish the rights given to owners or 45 operators of mamsmmingus-iwiwinewstare,poneumiomitie. as set 46 forth in G-S-160D-108-G.S. 160D-108 and G.S.1 160D-108.2or the rights of owners or operators 47 of outdoor advertising signs in Article 11 of Chapler136.Chapter. 136 oft the General Statutes.' 1 48 SECTION 18. G.S. 160D-944 reads as rewritten: 49 "S 160D-944. Designation of historic districts. 50 (a) Any local government may, as part of a zoning regulation adopted pursuant to Article 51 7 ofthis Chapter or as a development regulation enacted or amended pursuant to Article 6 of this Page 18 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 1 Chapter, designate and from time to time amend one or more historic districts within the area 2 subject to the development regulation. Historic districts established pursuant to this Part shall 3 consist ofareas that are deemed to be of special significance in terms oft their history, prehistory, 4 architecture, or culture and to possess integrity of design, setting, materials, feeling, and 5 association. 6 A development regulation may treat historic districts either as a separate use district 7 classification or as districts that overlay other zoning districts. Where historic districts are 8 designated as separate use districts, the zoning-development regulation may include as uses by 9 right or as special uses those uses found by the preservation commission to have existed during 10 the period sought to be restored or preserved or to be compatible with the restoration or 11 preservation of the district. 12 (b) No historic district or districts shall be designated under subsection (a) of this section 13 until all ofthe following occur: 14 (1) An investigation and report describing the significance of the buildings, 15 structures, features, sites, or surroundings included in the proposed district and 16 a description of the boundaries of the district have been prepared. 17 (2) The Department of Natural and Cultural Resources, acting through the State 18 Historic Preservation Officer or his or her designee, has made an analysis of 19 and recommendations concerning the report and description of proposed 20 boundaries. Failure of the Department to submit its written analysis and 21 recommendations to the governing board within 30 calendar days after a 22 written request for the analysis has been received by the Department relieves 23 the governing board of any responsibility for awaiting the analysis, and the 24 governing board may at any subsequent time take any necessary action to 25 adopt or amend its zoning regulation. 26 (3) Seventy-five percent (75%) of the property owners in the proposed district 27 sign aj petition requesting designation oft the district. 28 (c) The governing board may also, in its discretion, refer the report and proposed 29 boundaries under subsection (b) of this section to any local preservation commission or other 30 interested body for its recommendations prior to taking action to amend the zening-development 31 regulation. With respect to any changes in the boundaries of a district, subsequent to its initial 32 establishment, or the creation of additional districts within the jurisdiction, the investigative 33 studies and reports required by subdivision (1) of subsection (b) of this section shall be prepared 34 by the preservation commission and shall be referred to the planning board for its review and 35 comment according to procedures set forth in the zeningdevelopment regulation. Changes in the 36 boundaries of an initial district or proposal for additional districts shall also be submitted to the 37 Department of Natural and Cultural Resources in accordance with the provisions of subdivision 38 (2) of subsection (b) oft this section. 39 On receipt of these reports and recommendations, the local government may proceed in the 40 same manner as would otherwise be required for the adoption or amendment of any appropriate 41 zoning-reguation-development regulation. except that the governing board shall unanimously 42 approve the adoption ofthe district. 43 (d) G.S. 160D-914 applies to zening-er-ether-development regulations pertaining to 44 historic districts, and the authority under that statute for the ordinance to regulate the location or 45 screening of solar collectors may encompass requiring the use of plantings or other measures to 46 ensure that the use ofs solar collectors is not incongruous with the special character ofthe district.' M 47 SECTION 19. Article 9 of Chapter 160D of the General Statutes is amended by 48 adding the following two new sections to read: 49 "S160D-974. Tiny houses in residential districts in certain cities. House Bill 765-Second Edition Page 19 General Assembly Ofl North Carolina Session 2025 1 (a) Tiny Housing in Residential Zones. - A city shall allow tiny housing in areas zoned 2 for residential or mixed-use residential, including those that allow for the development of 3 detached single-family dwellings. 4 (b) Regulation and Scope. - Nothing in this section affects the validity or enforceability 5 of private covenants or other contractual agreements among property owners relating to dwelling 6 type restrictions. Any development regulation adopted pursuant to this section shall not apply to 7 an area designated as a local historic district (i) pursuant to Part 4 of this Article or (i) on the 8 National Register of] Historic Places, unless approved by the local historic preservation authority. 9 For septic systems, a city may: require a new system or an upgrade to an existing system if it is 10 determined that the existing system is incapable ofhandling increased capacity. 11 (c) Definitions. - As used in this section, the term "tiny housing" means a detached 12 single-family dwelling unit that is no greater than 600 square feet, built to standards applicable 13 to the North Carolina Residential Code, and is either constructed or mounted on a foundation and 14 is connected to utilities. The term does not include a recreational vehicle or manufactured home 15 that has not been affixed to real property. 16 (d) Applicability. - This section applies only to cities with a population of 125,000 or 17 more, according to the most recent decennial federal census. 18 & 160D-975. Accessory dwelling units in certain cities. 19 (a) A city shall allow the development of at least one accessory dwelling unit which 20 conforms to the North Carolina Residential Code, including applicable provisions from the North 21 Carolina Fire Code, for each detached single-family dwelling that is greater than 600 square feet, 22 in areas zoned for residential use that allow for development of detached single-family dwellings. 23 An accessory dwelling unit may be built or sited concurrently with the primary dwelling or after 24 the primary dwelling has been constructed or sited. Nothing in this section shall prohibit a local 25 government from permitting accessory dwelling units in any area not otherwise required under 26 this section. 27 (b) Development and permitting of an accessory dwelling unit shall not be subject to any 28 of the following requirements: 29 Owner-occupancy. of any dwelling unit, including an accessory unit. 30 (2) Minimum parking requirements or other parking restrictions. including the 31 imposition of additional parking requirements where an existing structure is 32 converted for use as an accessory dwelling unit. 33 (3) Conditional use zoning. 34 (c) In permitting accessory dwelling units under this section, a city shall not do any of 35 the following: 36 Prohibit the connection of the accessory dwelling unit to existing utilities 37 serving the primary dwelling unit. 38 Charge any fee. other than a building permit fee. that exceeds the amount 39 charged for any single-family dwelling unit similar in nature. 40 (d) Except as otherwise provided in this section, a city may regulate accessory dwelling 41 units pursuant to this Chapter, provided that the development regulations do not act to discourage 42 development or siting of accessory dwelling units through unreasonable costs or delay. Nothing 43 in this section shall affect the validity or enforceability of private covenants or other contractual 44 agreements among property owners relating to dwelling type restrictions. 45 (e) A city mayi impose a setback minimum for accessory dwelling units of5 feet or the 46 setback minimum imposed generally upon lots in the same zoning classification. whichever is 47 less. 48 For the purposes ofthis section, the term "accessory dwelling unit" means an attached 49 or detached residential structure that is used in connection with or that is accessory to a primary 50 single-family dwelling and that has less total square footage than the primary single-family 51 dwelling. Page 20 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 1 (g) This section applies only to cities with a population of 125,000 or more, according to 2 the most recent decennial federal census. I 3 SECTION 20. G.S. 160D-1102(c) reads as rewritten: 4 "(c) No later than October 1 of 83,2824.m42045-cch year. every local government 5 shall publish an annual tinançial report on how it used fees from the prior fiscal year for the 6 support, administration, and implementation of its building code enforcement program as 7 required by G.S. 160D-402(d). This report is in addition to any other financial report required by 8 law." 9 SECTION 21. G.S. 160D-1110(d) is amended by adding a new subdivision to read: 10 "(3) Require more than a shell permit for the construction of a multifamily 11 development. Upon the request of the permittee, the local government shall 12 issue certificates of occupancy for individual units in a multifamily 13 development permitted under a shell permit as the units meet the criteria for 14 issuance of a certificate of occupancy. For purposes of this subdivision, "shell 15 permit" means aj permit that allows for the structural construction ofal building 16 but does not result in the issuance of a certificate of occupancy." " 17 SECTION 22. G.S. 160D-1403 reads as rewritten: 18 "S 160D-1403. Appeals of decisions on subdivision plats. 19 (a) When-a-stubdvisienregelatenadepledundertHsChaplerprovidesthes-thatthe-deeisien 20 whelherte-approve-oxeordenyapreliminyer-finatsmbivisiopiatirgusijudieialthen-that 21 deeision-efthe-beards-subjeette-eview-by-thesuperiereeurtbyapreeedingin-the-mature-ef 22 etiem-GAS-160D-49-0é-maiis-ta-pyietheseappaaks. 23 (b) When-asubdivisienregelatnadepled-umdertHsChaplerprewidesthatthe-deeisien 24 whelherie-approvyeerdenyapreliminarfinahsmhiwisirplatismiminisisaiveporfer-For 25 any theradministrative decision implementing a subdivision regulation, the follewingapples: 26 (1) made-bythe-gevemimgbeard-erplammimg-beard,the-deeisien-is-subjeette 27 eveweby-flamganaetiom-nswpenercewrseehngppepraatedelarerye: 28 quible-relef-witia-30-daye-fem-esip-eFe-wie 29 deeisienkwhiehshal-be-madeasprewide-R-G.S.160D-4030) 30 (2) Fmadeby-thestafforesiaffcemmitee,the-decision is subject to appeal as 31 provided in G.S. 160D-405. 32 (€) Ferpupases-of-lis-ssia,e-aviswiw-egulaso-demed-e-autherize-a 33 wisia-dauisomiF-rdaiwmling-AD.asueriandie 34 deeide-whetherteappreveerdenylheplatbased.netenlywpon-waethertheappheatton-cemphes 35 With-the-speeifie-regHiremRet-set-erth--the-reguatien-bur-alse-OR-Whethertthe-appleation 36 cemplies-with-ome-eSeeaNystadsamdad-rg.ting*-disertiematy-deisien-e-be 37 made." 38 SECTION 23. G.S. 160D-1403.1 reads as rewritten: 39 "S 160D-1403.1. Civil action for declaratory relief, injunctive relief, other remedies; joinder 40 of complaint and petition for writ of certiorari in certain cases. 41 (a) Civil Action. - Except as otherwise provided in this section for claims involving 42 questions of interpretation, in lieu of any remedies available under G.S. 160D-405 or 43 G.S. 160D-108(h), a person with standing, as defined in subsection (b) ofthis section, may bring 44 an original civil action seeking declaratory relief, injunctive relief, damages, or any other 45 remedies provided by law or equity, in superior court or federal court to challenge the 46 enforceability, validity, or effect of a lealanddevelopment regulation or development: approval 47 for any of the following claims: 48 (1) The rimamee-development regulation, either on its face or as applied, is 49 unconstitutional. House Bill 765-Second Edition Page 21 General Assembly Of North Carolina Session 2025 I (2) The erdéimanee,development regulation. either on its face or as applied, is ultra 2 vires, preempted, arbitrary or capricious.ori is otherwise in excess of statutory 3 authority. 4 (3) The erdinanee, development regulation, either on its face or as applied, 5 constitutes a taking of property. 6 (4) The development approval is ultra vires, preempted, in excess ofi its statutory 7 authority, made upon unlawful procedure, made in error of law, arbitrary and 8 capricious, or an abuse of discretion. 9 (al) Appeals of Administrative Decisions. - If the deeisienrdevelopment approval being 10 challenged under subsection (a) of this section is from an administrative official charged with 11 enforcement of a ecallamd-development regulation, the party with standing must first bring any 12 claim that the eréimanee-development regulation was erroneously interpreted to the applicable 13 board of adjustment pursuant to G.S. 160D-405. An adverse ruling from the board of adjustment 14 may then be challenged in an action brought pursuant to this subsection with the court hearing 15 the matter de novo together with any ofthe claims listed in this subsection. 16 (b) Standing. Any of the following criteria provide standing to bring an action under 17 this section: 18 (1) The person has an ownership, leasehold, or easement interest in, or possesses 19 an option or contract to purchase the property that is the subject matter of a 20 final and binding decision made by an administrative official charged with 21 applying or enforcing a land-development regulation. 22 (2) The person was a development permit applicant before the decision-making 23 board whose decision is being challenged. 24 (3) The person was a development permit applicant who is aggrieved by a final 25 and binding decision of an administrative official charged with applying or 26 enforcing a and-development regulation. 27 (4) An association. organization, society, or entity whose membership is 28 comprised of an individual or entity identified in subdivision (2) or (3) ofthis 29 subsection. 30 31 (g) Definitions. - The definitions-definition of "development permit" in G.S. 143-755 32 shall apply in this section.' 33 SECTION 24. Article 14 of Chapter 160D of the General Statutes is amended by 34 adding a new section to read: 35 "$160D-1403.3. Private remedies. 36 In addition to any other remedy otherwise provided by law. any person with standing under 37 G.S. 160D-1403.1(b) may bring a civil action to enforce the provisions of this Chapter and 38 recover damages. costs, and disbursements. including costs of investigation and reasonable 39 attorneys' fees, and receive other equitable relief as determined by the court.' " 40 SECTION 25.(a) Article 14 of Chapter 160D of the General Statutes is amended by 41 adding a new section to read: 42 "S160D-1406. Civil liability in certain instances. 43 (a) In addition to any other remedy available, actual damages resulting from any 44 development decision. or lack thereof. may be recovered by civil action naming a member or 45 members of the decision-making board individually. A civil action under this section may be 46 instituted by any person with standing as described in G.S. 160D-1402(c) to recover civil 47 damages from any member or members of the decision-making board who did any of the 48 following with respect to the development decision: 49 (1) Engaged inj impermissible violations of due process. 50 (2) Considered evidence or other material gained outside of an evidentiary 51 hearing when making a quasi-judicial decision. Page 22 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 3 Acted maliciously, arbitrarily and capriciously, or unlawfully. 2 (4) Acted grossly negligent or wrongfully. 3 (b) If a court determines that a member of a decision-making board is liable under 4 subsection (a) of this section, the court may also award punitive damages. 5 (c) Notwithstanding the common law of legislative privilege and legislative immunity, 6 court may compel disclosure of information if, in the presiding judge's opinion, the disclosure is 7 necessary to a proper administration of justice. 8 (d) Attorneys' fees and costs shall be awarded in accordance with G.S. 6-21.7." 9 SECTION 25.(b) G.S. 6-21.7 reads as rewritten: 10 "S 6-21.7. Attorneys' fees; cities or counties acting outside the scope of their-authority. 11 (a) In any action in which a city or county is a party, upon a finding by the court that the 12 city or county violated a statute or case law setting forth unambiguous limits on its authority, the 13 court shall award reasonable attorneys' fees and costs to the party who successfully challenged 14 the city's or county's action. In any action in which a member of a decision-making board under 15 Chapter 160D ofthe General Statutes is found to be liable under G.S. 160D-1406, the court shall 16 award reasonable attorneys' fees and costs to the party who successfully challenged the acts of 17 the member of a decision-making board under Chapter 160D of the General Statutes. 18 (b) In any action in which a city or county is a party, upon finding by the court that the 19 city or county took action inconsistent with, or in violation of, G.S. 160D-108(b) or 20 G.S. 143-755, the court shall award reasonable attorneys' fees and costs to the party who 21 successfully challenged the local government's failure to comply with any oft those provisions. 22 (c) In all other matters,-matters not covered by subsection (a) or (b) of this section, the 23 court may award reasonable attorneys' fees and costs to the prevailing private litigant. 24 (d) For purposes ofthis section, "unambiguous" means that the limits of authority are not 25 reasonably susceptible to multiple constructions." 26 SECTION 26. G.S. 63-31(e) reads as rewritten: 27 "(e) All airport zoning regulations adopted under this Article shall be reasonable, and none 28 shall require the removal, lowering, or other change or alteration of any structure or tree not 29 conforming to the regulations when adopted or amended, or otherwise interfere with the 30 continuance of any meneenfemming-user-nonconformity as defined in G.S.1 160D-102 except as 31 provided in G.S. 63-32, subsection (a)." 32 SECTION 27. G.S. 63-36 reads as rewritten: 33 "S 63-36. Acquisition of air rights. 34 (a) In any case in which: 35 (1) It is desired to remove, lower, or otherwise terminate a ReRcenfemming-se; 36 nonconformity; or 37 (2) The approach protection necessary cannot, because of constitutional 38 limitations, be provided by airport zoning regulations under this Article; or 39 (3) It appears advisable that the necessary approach protection be provided by 40 acquisition ofp property rights rather than by airport zoning regulations, 41 the political subdivision within which the property or eaRaRtONTe is 42 located or the political subdivision owning the airport or served by it may acquire, in the manner 43 provided by the law under which municipalities are authorized to acquire real property for public 44 purposes, such an air right, easement, or other estate or interest in the property or nencenforming 45 usenonconformityin question as may be necessary to effectuate the purposes of this Article. 46 (b) If any political subdivision, or if any board or administrative agency appointed or 47 selected by a political subdivision, shall adopt, administer or enforce any airport zoning 48 regulations which results in the taking of, or in any other injury or damage to any existing 49 structure, such political subdivision shall be liable therefor in damages to the owner or owners of 50 any such property and the liability of the political subdivision shall include any expense which 51 the owners of such property are required to incur in complying with any such zoning regulations. House Bill 765-Second Edition Page 23 General Assembly Of North Carolina Session 2025 1 (c) For purposes of this section, 'nonconformity" shall have the same meaning as in 2 G.S. 160D-102. I 3 SECTION 28.(a) G.S. 120-36.7 is amended by adding a new subsection to read: 4 "(e) Proposed Increases Affecting Home Affordability. - Every bill and resolution 5 introduced in the General Assembly proposing any change in the law that could cause a net 6 increase in the cost of constructing, purchasing, owning, or selling a building or structure subject 7 to the North Carolina Residential Code, either directly or indirectly, shall have attached to it at 8 the time of its consideration by the General Assembly a fiscal note prepared by the Fiscal 9 Research Division. The fiscal note shall identify and estimate, for the first five fiscal years the 10 proposed change would be in effect, all anticipated effects on costs of the proposed change. The 11 fiscal note shall be prepared on the basis of a median priced single-family residence and may 12 include an estimate for a larger development as an analysis oft the long-range effect ofa measure. 13 If. after careful investigation, the Fiscal Research Division determines that no dollar estimate is 14 possible, the note shall contain a statement to that effect. setting forth the reasons why no dollar 15 estimate can be given. No comment or opinion shall be included in the fiscal note with regard to 16 the merits of the measure for which the note is prepared. However, technical and mechanical 17 defects may be noted. 18 The sponsor of each bill or resolution to which this subsection applies shall present a copy of 19 the bill or resolution with the request for a fiscal note to the Fiscal Research Division. Upon 20 receipt of the request and the copy of the bill or resolution, the Fiscal Research Division shall 21 prepare the fiscal note as promptly as possible. The Fiscal Research Division shall prepare the 22 fiscal note and transmit it to the sponsor within two weeks after the request is made. unless the 23 sponsor agrees to an extension of time. 24 This fiscal note shall be attached to the original of each proposed bill or resolution that is 25 reported favorably by any committee of the General Assembly but shall be separate from the bill 26 or resolution and shall be clearly designated as a fiscal note. A fiscal note attached to a bill or 27 resolution pursuant to this subsection is not a part oft the bill or resolution and is not an expression 28 oflegislative intent proposed by the bill or resolution. 29 Ifa committee of the General Assembly reports favorably a proposed bill or resolution with 30 an amendment that proposes a change in the law that could cause a net increase in the cost of 31 constructing, purchasing, owning, or selling a building or structure subject to the North Carolina 32 Residential Code. either directly or indirectly, the chair of the committee shall obtain from the 33 Fiscal Research Division and attach to the amended bill or resolution a fiscal note as provided in 34 this section.' I 35 SECTION 28.(b) Article 3 of Chapter 159 of the General Statutes is amended by 36 adding a new section to read: 37 "S1 159-42.2. Fiscal note required for ordinances affecting housing affordability. 38 (a) Prior to adopting, amending, or repealing an ordinance that could cause a neti increase 39 in the cost of constructing, purchasing, owning, or selling a building or structure subject to the 40 North Carolina Residential Code, either directly or indirectly, the governing body of a county or 41 city shall have a fiscal note prepared byi its planning department or another department designated 42 by the governing body. The fiscal note shall be submitted to the governing body at least five days 43 prior to the meeting at which the ordinance is to be introduced and shall be made available to the 44 publica at that meeting. For purposes of this section. the term "introduced" has the same meaning 45 as in G.S. 160A-75(c). In preparing the fiscal note, the planning department or other department 46 may consult with relevant trade organizations representing the real estate or home building 47 industries. The fiscal note shall identify and estimate. for the first five fiscal years the ordinance. 48 or the amendment or repeal thereof, would be in effect, all anticipated effects on costs of the 49 proposed change. The fiscal note shall be prepared on the basis of a median priced single-family 50 residence and may include an estimate for a larger development as an analysis of the long-range 51 effect of a measure. If. after careful investigation, the planning or other department determines Page 24 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 1 that no dollar estimate is possible, the fiscal note shall contain a statement to that effect, setting 2 forth the reasons why no dollar estimate can be given. No comment or opinion shall be included 3 in the fiscal note with regard to the merits ofther measure for which thei note is prepared. However, 4 technical and mechanical defects may be noted. 5 (bl C Any resident oft the county or city may bring a civil action in the superior court of the 6 county for failure of the governing body to have a fiscal note prepared as required by this section 7 or for failure to prepare an accurate or sufficient fiscal note. Ift the court determines the governing 8 body failed to have a fiscal note prepared as required by this section or failed to prepare an 9 accurate or sufficient fiscal note, the court shall order that a fiscal note be prepared. The court 10 shall have authority to determine the sufficiency ofa fiscal note.' I 11 SECTION 29. Article 11 of Chapter 130A of the General Statutes is amended by 12 adding a new section to read: 13 "S 130A-343.5. Wastewater systems for property within service area of a public or 14 community wastewater system. 15 (a) Notwithstanding G.S. 130A-55(16). 153A-284, 160A-317, 162A-6(a)(14d). and 16 162A-14(2), a property owner mayi install a wastewater system in accordance with this Article to 17 serve any undeveloped or unimproved property located SO as to be served by a public or 18 community wastewater system. 19 (b) Notwithstanding G.S. 130A-55(16). 153A-284, 160A-317, 162A-6(a)(14d). and 20 162A-14(2), a property owner of developed or improved property located sO as to be served by 21 a public or community wastewater system may install a wastewater system in accordance with 22 this Article if the public or community wastewater system has not yet installed sewer lines 23 directly available to the property or otherwise cannot provide wastewater service to the property 24 at the time the property owner desires wastewater service. 25 (c) Upon compliance with this Article, the property owner installing a wastewater system 26 pursuant to subsection (a) or (b) of this section shall not be required to connect to the public or 27 community wastewater system for SO long as the wastewater system installed in accordance with 28 this Article remains compliant and in use. A property owner may opt to connect to the public or 29 community wastewater system if the property owner SO desires. 30 (d) Nothing in this section shall require a property owner to install a wastewater system 31 in accordance with this Article if the property is located sO as to be served by a public or 32 community wastewater system and the public or community wastewater system is willing to 33 provide wastewater service to the property. 34 (e) This section shall not apply, and a public or community wastewater system may 35 mandate connection to that public or community wastewater system, in any of the following 36 situations: 37 The wastewater system in accordance with this Article serving the property 38 has failed and cannot be repaired. 39 The public authority or unit of government operating the public water system 40 is being assisted by the Local Government Commission. 41 (3) The public authority or unit of government operating the public or community 42 wastewater system is in the process of expanding or repairing the public or 43 community wastewater system and is actively making progress to having 44 wastewater lines installed and directly available toj provide wastewater service 45 to that property within the 24 months of the time the property owner applies 46 for a permit under this Article. I 47 SECTION 30. G.S. 136-102.6 is amended by adding a new subsection to read: 48 "(cl) Notwithstanding anything to the contrary in this section, the Division of Highways 49 shall accept aj performance guarantee as provided under G.S. 160D-804. 1 to ensure completion 50 of streets that are required by a development regulation under Chapter 160D of the General House Bill 765-Second Edition Page 25 General Assembly Of North Carolina Session 2025 1 Statutes. On receipt of the performance guarantee, the Division of Highways shall issue a 2 certificate of approval to the municipality or county as to those streets. I 3 SECTION 31. G.S. 136-131.5(c) reads as rewritten: 4 "(c) A nonconforming sign mot-cenfemming-te-Sate-Sisie-siandard-shal not be relocated 5 pursuant to this section unless the PeReCRemRNV/TeReVeémonconforming sign is brought into 6 conformity with State law, rules, and regulations as part of the relocation." 7 SECTION 32. The catch line of G.S. 136-131 reads as rewritten: 8 "S 136-131. Removal of certain existing nonconforming advertisingsiens." 9 SECTION 33. G.S. 136-133.1(d) reads as rewritten: 10 "(d) Except as provided in subsection (e) of this section, trees existing at the time the 11 outdoor advertising sign was erected may only be removed within the zone created in subsection 12 (a) of this section if the applicant satisfies one of the following two options selected by the 13 applicant: (i) reimbursement to the Department pursuant to G.S. 136-93.2 or (ii) trees that existed 14 at the time of the erection oft the outdoor advertising sign may be removed if the applicant agrees 15 to remove two nonconforming Heer-aéverisimg-signs for each outdoor advertising sign at 16 which removal of6 existing trees is requested. The surrendered nonconforming signs must be fully 17 disassembled before any removal of existing trees is permitted and shall not be eligible for future 18 outdoor advertising permits in perpetuity. 19 SECTION 34. G.S. 160A-31(h) reads as rewritten: 20 "(h) A city council which receives a petition for annexation under this section may by 21 ordinance require that the petitioners file a signed statement declaring whether or not vested 22 rights with respect to the properties subject to the petition have been established under 23 4S-169D-198-r-GS-160D-10-G5. 160D-108. 160D-108.1, or 160D-108.2. If the 24 statement declares that such rights have been established, the city may require petitioners to 25 provide proof of such rights. A statement which declares that no vested rights have been 26 established under G-S.160D-108 ef G-S160D-108-1 G.S. 160D-108. 160D-108.1, or 27 160D-108.2 shall be binding on the landowner and any such vested right shall be terminated." 28 SECTION 35. G.S. 160A-58.1(d) reads as rewritten: 29 "(d) A city council which receives a petition for annexation under this section may by 30 ordinance require that the petitioners file a signed statement declaring whether or not vested 31 rights with respect to the properties subject to the petition have been established under 32 68-169-198-r-GS-160D-101-G5. 160D-108, 160D-108.1, or 160D-108.2. If the 33 statement declares that such rights have been established, the city may require petitioners to 34 provide proof of such rights. A statement which declares that no vested rights have been 35 established under G.S.160D-108 OF G-S.160D-108-1 G.S. 160D-108, 160D-108.1. or 36 160D-108.2shall be binding on the landowner and any such vested rights shall be terminated." 37 SECTION 36. G.S. 160A-307 reads as rewritten: 38 "S 160A-307. Curb cut regulations. 39 (a) A-Except as expressly permitted by Chapter 160D oft the General Statutes. a city may 40 not regulate by ordinance regulate-the size, location, direction of traffic flow, and manner of 41 construction of driveway connections into any street or alley. The-To the extent allowed by 42 Chapter 160D of the General Statutes, the ordinance may require the construction or 43 reimbursement of the cost of construction and public dedication of medians, acceleration and 44 deceleration lanes, and traffic storage lanes for driveway connections into any street or alley if 45 all ofthe following apply: 46 (1) The city has shown through substantial evidence the need for sueh-the 47 improvements is reasonably attributable to the traffic using the driveway. 48 (2) The city has shown through substantial evidence the improvements serve the 49 traffic of the driveway. 50 (b) No street or alley under the control of the Department of Transportation may be 51 improved without the consent of the Department of Transportation. A city shall not require the Page 26 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 1 applicant to acquire right-of-way from property not owned by the applicant. However, an 2 applicant may voluntarily agree to acquire such right-of-way. 3 (c) For purposes of this section, "substantial evidence" means facts and information, 4 other than mere personal preferences or speculation, that a reasonable person would accept in 5 support of a conclusion. " 6 SECTION37.(a) Chapter 162A ofthe General Statutes is amended by adding a new 7 Article to read: 8 "Article 12. 9 "Water and Sewer Allocation. 10 "S1 162A-1000. Short title and purpose. 11 (a) This Article shall be known and may be cited as the "Water and Sewer Capacity 12 Allocation and Planning Act." 13 (b) The purpose of this Article is to require all public water and sewer service providers 14 to plan for future growth and allocate water and wastewater system capacity in a fair, transparent, 15 and accountable manner. This act will ensure that sufficient water supply and wastewater 16 treatment capacity is available for anticipated development and that capacity is allocated without 17 discrimination or abuse. 18 162A-1001. Definitions. 19 For the purposes of this Article. the following definitions apply: 20 1 Allocation or capacity allocation. A reservation of a specific quantity of 21 water or sewer capacity for a particular project. 22 (2) Applicant. - Any person, business, developer, property owner, or entity that 23 has received preliminary or final site plan approval, as defined under 24 G.S. 160D-102(29). for aj project and submits an application for allocation for 25 a new development or expansion of an existing development to aj public water 26 or sewer provider. 27 - Approved applicant. - An applicant whose application for allocation has been 28 approved. 29 +) Available capacity. - The portion of a facility's capacity that is not currently 30 being used by existing customers and is not already reserved by prior 31 allocations. Available capacity is determined by establishing a facility's 32 capacity minus the sum of current actual usage and any outstanding 33 allocations for projects in their reservation period. 34 (5) Capacity or system capacity. The actual capacity of a facility. For 35 wastewater systems, actual capacity refers to hydraulic capacity, meaning the 36 maximum volume of wastewater that can be collected, conveyed, and treated 37 under the facility's permit limits without violation. For water systems, actual 38 capacity refers to the actual available water supply, meaning the reliable 39 quantity of water that can be treated and delivered. accounting for permitted 40 withdrawal limits and treatment plant output, wells, or other sources, 41 including any contractual or bulk supply capacity available to the local 42 governmental unit. 43 (6) Department. - The Department of] Environmental Quality. 44 (7) Facility. - As defined in G.S. 162A-201(4). 45 (8) Local governmental unit. = As defined in G.S.1 162A-201(5) and any 46 third-party persons who own or operate a facility on behalf of a local 47 governmental unit. 48 (9) Project. = A development, as defined by G.S. 160D-102(12). for which water 49 or sewer service is requested. This includes new developments. and expansion 50 or additions to existing developments. that require new or additional water or 51 sewer service. House Bill 765-Second Edition Page 27 General Assembly Of North Carolina Session 2025 1 I (10) Substantial expenditure. = A significant or considerable outlay of money, 2 resources, or financial investment, viewed in light of the stage in which the 3 project exists, that is not merely nominal or trivial. 4 "S1 162A-1002. Allocation process. 5 (a) Allocation Request. - A local governmental unit shall approve capacity allocation 6 requests in accordance with this Article. Once approved. a capacity allocation guarantees the 7 local governmental unit shall provide water service or sewer service for that project up to the 8 approved allocation amount. 9 (b) Form of Application. - A local governmental unit may request only the following 10 information from an applicant, and may not require any other information that is not necessary 11 for the local governmental unit to determine whether it has available capacity to serve the project: 12 (1) The name, address, and other relevant contact information of the applicant. 13 (2) Documentation evidencing that the applicant has received preliminary or final 14 approval for a site plan, as defined under G.S. 160D-102(29). for the project. 15 3) The amount of capacity allocation requested in gallons per day or other 16 similarly objective measurement. 17 (4) The anticipated date the project will begin utilizing the capacity allocation. 18 (c) Approval of Allocation Request. - Not later than 10 days after receiving an 19 application for allocation, a local governmental unit shall approve the allocation if available 20 capacity exists and the application is complete. Upon approving the allocation, the local 21 governmental unit shall provide the applicant with written documentation specifying (i) the 22 allocation reserved, (ii) the amount of allocation reserved, (iii) the project for which the allocation 23 has been reserved, (iv) the date oft the allocation approval, and (v) the date the reservation period 24 expires. The local governmental unit shall approve or deny applications for allocation according 25 to the following process: 26 The local governmental unit shall approve the total allocation requested by the 27 applicant unless the request for allocation exceeds the local governmental 28 unit's available capacity, in which case the local governmental unit shall, 29 within 10 days after receiving the application for allocation, offer to provide 30 the applicant with allocation equivalent to the available capacity, if any. The 31 local governmental unit shall reserve the reduced allocation for a project under 32 this subsection provided the applicant agrees. in writing, to the reduced 33 allocation. 34 Except as expressly provided in this section, a local governmental unit may 35 not deny, reduce, or otherwise modify the amount of an allocation requested 36 through an application if available capacity exists sufficient to accommodate 37 an application's allocation request. 38 A local governmental unit shall not require an applicant to agree to any 39 condition not otherwise authorized by this section, or to accept any offer by 40 the applicant to consent to any condition not otherwise authorized by law. 41 These conditions include, without limitation, any oft the following: 42 a. Payment of taxes, impact fees, or other fees or contributions to any 43 fund. 44 b. Adherencet to anyrestrictions: related to development regulations under 45 Chapter 160D ofthe General Statutes. including those within the scope 46 of G.S. 160D-702(c). 47 C. Adherencei to any restriction related to building design elements within 48 the scope of G.S. 160D-702(b). 49 (4) A local governmental unit shall not implement a scoring or preference system 50 to allocate water service or sewer service among applicants, except as 51 specifically authorized by this section. Page 28 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 I (d) Reservation Period. - The initial reservation period shall be for 24 months after the 2 date the allocation is approved. A local governmental unit shall extend the initial reservation 3 period or extension reservation period for an additional 12 months provided (i) the applicant 4 notifies the local governmental unit that it requires an extension of the initial reservation period 5 or extension reservation period not later than 90 days prior to the expiration of the initial 6 reservation period or extension reservation period and, (ii) concurrent with its notification, the 7 applicant provides the local governmental unit with documentation demonstrating that the 8 applicant has made substantial expenditure towards the completion oft the project or the applicant 9 provides documentation of a valid building permit. 10 (e) Allocations Approved in Chronological Order. - Except for requests to reserve 11 capacity in accordance with G.S. 115C-521 and under subsection (k) oft this section, allocations 12 shall be granted in the chronological order that completed applications are received by the local 13 governmental unit. 14 Denial of Allocation Request. = A local governmental unit shall deny an application 15 for allocation, within 10 days after receiving an application for allocation, only if one of the 16 following applies: 17 (1) The applicant cannot demonstrate approval of a preliminary or final site plan, 18 as defined in G.S. 160D-102(29). 19 (2) The local governmental unit does not have any available capacity. 20 (3) The applicant has rejected, in writing, the local governmental unit's offer to 21 provide allocation equivalent to its available capacity as provided in 22 subdivision (1) of subsection (c) oft this section. if any. 23 (g) Modification of Allocation. - In the event an approved applicant determines that the 24 allocation necessary to serve the project increases or decreases by more than ten percent (10%) 25 of the approved allocation, the approved applicant shall immediately notify the local 26 governmental unit. and the following shall apply: 27 If the allocation approved by the local governmental unit decreases by more 28 than ten percent (10%). the local governmental unit shall adjust its available 29 capacity accordingly and the local governmental unit shall honor the approved 30 allocation, less the decrease in necessary allocation. 31 Ift the allocation approved by the provider increases by more than ten percent 32 (10%). the local governmental unit shall increase the allocation provided 33 available capacity exists. In the event available capacity does not exist, the 34 local governmental unit shall notify the approved applicant that the local 35 governmental unit does not have available capacity and extend an offer to the 36 approved applicant to increase the allocation in an amount equivalent to the 37 available capacity. If the approved applicant determines that the existing 38 allocation or the offer by the local governmental unit to increase the allocation 39 in an amount equivalent to the local governmental unit's available capacity 40 does not meet the needs of the project, the approved applicant shall 41 immediately notify the local governmental unit that it intends to terminate the 42 allocation. 43 (3) In the event the allocation is terminated by the applicant, the provider shall 44 adjust its available capacity accordingly. 45 (h) Expiration or Termination of Allocation. = Upon expiration or termination of 46 allocation. including allocations that are not used in full, the local governmental unit shall return 47 the expired, terminated, or unused capacity to its available capacity balance. Upon a return ofthe 48 expired. terminated, or unused capacity to the local governmental unit's available capacity 49 balance, the local governmental unit shall recalculate its available capacity and shall make it 50 available to future applicants for allocation. House Bill 765-Second Edition Page 29 General Assembly Of North Carolina Session 2025 1 Vested Right. Allocation approved under this section shall be deemed a vested 2 element of the project for the duration of the reservation period. The vested right to allocation 3 during the reservation period shall be in addition to any other vested rights the project may have 4 by law and shall run with the land for the benefit of the project. During the vesting period, the 5 local governmental unit may not revoke or reduce the allocation except by request of the 6 applicant or as described in this section. 7 G) Transferability of Allocation. Allocation shall be provided to the project described 8 in the application. An approved applicant may not transfer an unused allocation to a different 9 project. Ifthe project for which an allocation has been reserved is sold or the development rights 10 are assigned to a successor in interest, the allocation shall transfer to the successor in interest and 11 the allocation and reservation period shall be honored and may not be terminated or revoked by 12 the local governmental unit. In the event the project for which the allocation was reserved is sold 13 or transferred to a successor in interest, the approved applicant shall immediately notify the local 14 governmental unit of the sale or transfer. 15 (k) Emergency. Allocations. - Notwithstanding any other provision ofthis section, a local 16 governmental unit shall provide priority in allocation to applications demonstrating a substantial 17 threat to public health, safety, or welfare that can be mitigated only by the immediate provision 18 of water service or sewer service. An applicant seeking an emergency allocation must present 19 competent evidence to the local governmental unit of the risk to the public health, safety, or 20 welfare. Upon verifying that the application constitutes an emergency, the local governmental 21 unit shall approve allocation in the minimum amount necessary to abate the emergency on a 22 priority basis. 23 6 à Use of Allocation. = A local governmental unit shall not unreasonably delay an 24 approved applicant's ability to connect the approved applicant's project to the local governmental 25 unit's infrastructure. A local governmental unit shall begin providing water service or sewer 26 service to an approved applicant within 90 days after receiving a request from the approved 27 applicant to begin providing water service or sewer service. provided (i) the project is connected 28 to the local governmental unit's infrastructure and (ii) the request is made within the reservation 29 period described in subsection (d)o of this section. 30 "SI 162A-1003. Planning and reporting. 31 (a) Each local governmental unit shall prepare an annual report not later than October 1 32 of each year documenting facility capacity and available capacity. The report shall include, at a 33 minimum, all of the following information for each facility oft the local governmental unit: 34 (1) The current system capacity. 35 (2) The current available capacity. 36 (3) The amount of capacity allocated to approved developments or projects not 37 yet connected to the local governmental unit's infrastructure. 38 4) The remaining available capacity for new allocations. 39 (5) Any changes in capacity since the last report. 40 (6) Any planned improvements or expansions and the expected impact on 41 capacity. 42 The current actual usage oft the facility, including average daily demand and 43 peak daily demand over the year immediately preceding the preparation oft the 44 report. 45 (8) If the local governmental unit receives State or federal funding for water or 46 sewer infrastructure. a description of efforts to expand capacity to meet 47 growth, including progress on any State-funded projects. 48 (b) The Department shall make the annual reports available to the public. Each local 49 governmental unit shall also post the annual report on the website ofthat local governmental unit, 50 if any. 51 "S1 162A-1004. Enforcement and remedies. Page 30 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 1 (a) State Enforcement Authority, Ifthe Department finds that a local governmental unit 2 has violated any requirement of this Article, the Department may take appropriate preventive or 3 remedial enforcement action authorized by Part 1 of Article 21 of Chapter 143 of the General 4 Statutes. 5 (b) Civil Penalties. = A local governmental unit that fails to comply with the provisions 6 of this Article or willfully fails to administer or enforce the provisions of this Article shall be 7 subject to a civil penalty pursuant to G.S. 143-215.6A(e). 8 (c) Judicial Review. - Any applicant whose application was denied by a local 9 governmental unit, or who is otherwise aggrieved or injured by the action ofa local governmental 10 unit, may file an action in the superior court of the county where the local governmental unit is 11 located or where the project is located. In any civil action brought under this section, the court 12 may award reasonable attorneys' fees to a prevailing plaintiff who brought the action. 1 13 SECTION 37.(b) G.S. 162A-900, as enacted by S.L. 2024-45 and S.L. 2024-49, is 14 repealed. 15 SECTION 37.(c) For applicants that, on or after July 1, 2020, received a service 16 commitment from a public water system, public sewer system, or public water and sewer system 17 confirming availability of capacity for the applicant's development project, but whose capacity 18 needs have not been provided, the system shall reserve, allocate, and provide those applicants 19 with the capacity assured in the system's service commitment in the chronological order that the 20 service commitment was issued before the system reserves, allocates, or provides capacity to 21 another applicant. 22 SECTION 37.(d) The annual report required by G.S. 162A-1003, as enacted by this 23 act, shall be due October 1, 2026. 24 SECTION 38. Ifany provision of this act or the application thereof to any person or 25 circumstances is held invalid, such invalidity shall not affect other provisions or applications of 26 this act that can be given effect without the invalid provision or application and, to this end, the 27 provisions of this act are declared to be severable. 28 SECTION 39. Except as otherwise provided, this act becomes effective October 1, 29 2025, and applies to applications, approvals, and actions filed on or after that date. Any local 30 government ordinance in effect on, or adopted subsequent to, October 1, 2025, that is inconsistent 31 with this section is void and unenforceable. House Bill 765-Second Edition Page 31