Initiated over five years ago by a petition of property owners, the construction and paving of Woodland Circle Extension is officially complete. But the possibility that a majority stakeholder could walk — potentially leaving Foxfire Village with a $1.5 million unpaid assessment — dominated discussion at a Public Hearing on Thursday, January 13.
Addressing the Village Council on behalf of John McKean, who owns a significant portion of the property to be assessed, attorney John May argued that the Village was asking his client to pay more than his fair share of the cost.
Using the equal rate per acre methodology laid out in the preliminary resolution approved in December would burden McKean with almost three-quarters of the project costs, yet, owing to the position of his land, he will own only 30% of actual road frontage lots.
“The property that is going to pay the most for the assessment will not be equally benefited by the methodology you have chosen,” said May. “He [McKean] is not looking for a fight or to avoid paying some of the costs, but he would like very much for the Council to consider another more equitable methodology or approach in how to pay for this.”
May said that the current tax value on McKean’s 156-acre property is $1.1 million and that his anticipated assessment is $1.5 million. He also noted that a 2008 survey delineated 20% of the property as jurisdictional wetlands, leaving only 130 acres of divisible land.
“He will get to a point that it is not economically appropriate for him to pay the assessment, if he’s never going to get the money back out of the property,” warned May.
Faced with the possibility of McKean walking away — in effect giving the Village the property rather than paying the impending assessment — the Council consulted with Village Attorney Michael Brough, who was in attendance and considered their options.
Councilman Ed Lauer noted that it is difficult to revisit the payment methodology since the current Council does not know all the facts and thoughts that went into the original decision; only Erickson remains from the Council that approved the project.
“We received petitions and the decision was made. Whatever happens now is what it is,” said Lauer.
The extension project commenced in March 2006 when, at the urging of former mayors Wayne Arnold and Arden McConnell, the Council pledged its support of the then-proposed roadway to connect Woodland Circle where it had been left untouched as other areas of the East Side were paved.
In May 2008, all affected property owners along the proposed 1.5 mile road extension were notified of estimated construction costs — originally projected as high as $2.6 million but lowered to $2.3 million after the bidding process.
Mayor George Erickson noted that he and former finance director Wally Peckitt had spoken with McKean about the project on two occasions. In both instances, McKean had expressed reservations over the proposed cost.
In October 2008, seven bids were received and the lowest bidder, Vaughn Contracting, was awarded the $1,611,124 million project. [With the addition of engineering fees and other expenses added in, the total project cost that is being assessed is $1,996,000.]
Updated lower cost estimates were sent to property owners in December 2008 and again in January 2009. Ten of the fourteen owners, who together represented thirty-four properties and sixty-seven percent of the road frontage, responded favorably; three refused to sign, and one owner could not be located. Under North Carolina law, a petition may proceed with slightly over half of the affected owners’ approval.
However, May told the Council, McKean's concern is not that the road was built, or that he must pay a portion of its costs — but, rather, his concern is the formula used to determine each assessment. As approved in the preliminary assessment resolution, 100% of the cost of improvements will be assessed at an equal rate per square foot of affected lots.
May asked the Council to defer the assessment roll while other options are explored.
A particularly significant question, and one not easily answered by Village Attorney Brough or NC law it seems, is: If the Council reversed course and opted for a different assessment methodology, would the original petition stand? Or, put more simply, could the ten owners that approved the roadway extension in 2009 renege on the agreement if the deal were changed this late in the game.
“Instead of one unhappy property owner, we could have ten,” said Erickson.
Councilman Vic Koos agreed, “The problem is, if we would have to make-up the difference with the other property owners. They’re liable to bail out too, so what to do? I understand his point, but we might lose either way.”
Mayor Erickson advised against any postponement that could impact the Village’s ability to meet the project’s next loan payment, which is due in April. After going around the table with no clear legal answers on how or if the assessment methodology can be reworked, the Council adopted a resolution declaring the Woodland Circle extension project complete.
A Public Hearing on the preliminary assessment roll will be held on Tuesday, February 1 at 7 pm.
Long Range Planning survey results
A recently completed survey of Village citizens by the Long Range Planning Committee was designed to be general in nature rather than a vehicle to gather actionable data, Chairman Mick McCue told the Village Council during its Thursday, January 13 meeting. In total, sixty surveys, representing twelve percent of the population, were collected late last year.
In compiling results, McCue explained, the LRP Committee identified five basic themes; infrastructure, governance, public safety, taxes and finances, and visions of the future.
The two most commented upon areas of interest were infrastructure [70 comments] and visions of the future [54], followed by governance [16], public safety [14], and taxes and finance [8].
McCue said the next step will be to broaden those areas through focus groups meetings with specific interests, including the Foxfire Property Owners Association, Foxfire Garden Club, those with business ties to the Village, and others. He anticipated completion by the end of February.
Finance
Eighty-six percent of real property taxes have been collected. Notices will be sent at the end of the month to delinquent accounts.
As of December 31, the General Fund stood at $752,537, with $444,891 in money market, $219,912 in checking, and $50,029 in reserves, $16,624 in Powell Bill funds, and $20,979 in the Stonehill Pines account, plus $100 in petty cash. The Water Fund stood at $257,260, with $244,971 in money market, $31,238 in checking, $19,050 set aside for contractors deposit, and $100 in petty cash. In addition, $135,434 is held in escrow, restricted for a new well.
Annual bank loans include a July payment of $27,740 from the General Fund for the Village Green Park and a July payment of $41,144 from the Water Fund. In April, loan payments will be due for Woodland Circle of $199,869 from the General Fund and $14,813 from the Water Fund.
Deputy Village Clerk Sharon Sanchez presented the finance report for Councilwoman Leslie Frusco, who was unable to attend.
Public Safety
A new snow blade recently purchased for the Foxfire Police truck was put to good use during last week’s winter storm. Councilman Koos reported that Chief Mike Campbell and Sgt. Chad Shue worked alternating shifts to clear Village roads on Monday and Tuesday. In addition, the two primary thoroughfares — Richmond and Hoffman Roads — were well-maintained and cleared by North Carolina DOT.
“They did quite a job, both the state and our police,” said Koos, thanking them for their efforts.
During public comment, Foxfire resident MaryAnne Lauer also commended Foxfire’s officers for doing an excellent job of taking care of the Village streets.
Streets & infrastructure
A request for quotes to renovate the existing tennis courts netted two bids, reported Councilman John Eltschlager: one for $62,500 to renovate plus $7,500 to remove the existing surface, and a second bid of $57,000 that included both services.
Eltschlager said he also generated his own estimate of what he determined would be appropriate costs and came up with $52,000.
He said there were variables between the two bids and recommended a more definitive scope of work as well as exploring cost savings, including reduced fencing height and obtaining potential grant funding through the United State Tennis Association [USTA].
In response to last year’s traffic fatalities, Foxfire Village asked the NC Department of Transportation to perform a traffic study at the Richmond and Hoffman Road intersection. Eltschlager reported that an outside contractor has been hired by the State to perform the work and should be on-site in the next two or three weeks. During the up-to-twelve hour study period, the contractor will monitor both heavy and light vehicle traffic for speed and turning movements, and will also be evaluating the Council’s concern that there is limited sight visibility coming into the intersection.
Moore County is completing a five-year update to the Multi-Jurisdictional Hazard Mitigation Plan. A Public Hearing to review the proposed update will be held Tuesday, February 8 at 7:30 pm.
Recognitions & Appointment
The late Richard “Wally” Peckitt was recognized by the North Carolina League of Municipalities for his twenty-three years of service to Foxfire Village. During his long tenure on the council, he served as mayor pro tem, director of streets, and finance director. Peckitt was commended for his significant and lasting contributions and for excellence in municipal government.
The late Richard “Dick” Christman was recognized by the North Carolina League of Municipalities for seventeen years of faithful service as water superintendent to Foxfire Village. He was commended for his contributions and, Council Lauer noted, is greatly missed.
Lydia Conard was reappointed to serve another term on the Planning & Zoning Board, effective February 2011 to January 2014. Two more vacancies remain on the Zoning Board and interested residents should contact Village Clerk Lisa Kivett or Mayor George Erickson for more information.
