The Southern Shores Town Council had one of its busier meetings last week:

• Approving a Town budget of $12,795,709 for fiscal year 2024-25, which starts July 1;
• Learning from a N.C. State professor a multitude of facts about Eurasian milfoil, before authorizing the N.C. Dept. of Environmental Quality to survey Southern Shores canals for presence of the invasive weed;
• Discussing proposed changes to the Town Zoning Ordinance that would establish design standards for the commercial district; and
• Re-appointing two full members and two alternate members of the Planning Board to new three-year terms.

The one agenda topic the Town Council did not reach June 4 was affordable housing because Planning Board Alternate Michael Zehner, a professional planner who was going to initiate a Town “conversation,” could not attend the meeting. Mr. Zehner’s presentation was rescheduled to the Council’s July 2 meeting.

Police Chief David Kole also reported that a background check was then in process for a new officer and that Senior Patrol Officer Christopher L. Simpson had been promoted to sergeant.

The next Town Council meeting will be July 2, 5:30 p.m., in the Pitts Center. Mayor Elizabeth Morey announced that she will hold a Mayor’s chat on Wed., July 17, from 4:30 to 5:30 p.m., in the Pitts Center.

For background on the June 4 meeting agenda topics, see The Beacon, 6/2/24. For the meeting agenda and background materials, see:

https://mccmeetings.blob.core.usgovcloudapi.net/soshoresnc-pubu/MEET- Packet-db4132f33646488b9d04fe19680873c3.pdf.

EURASIAN MILFOIL 101

At the invitation of Town Manager Cliff Ogburn, Professor Rob Richardson, the Dept. of Crop Science at N.C. State University, appeared via Zoom, to give a thorough and comprehensive presentation about Eurasian milfoil, an invasive weed that typically grows in shallow waterways.

It was all you would ever want to know—and then some.

Dr. Richardson, who is the Aquatic and Non-Cropland Weed Scientist at N.C. State, covered what Eurasian milfoil is and where it is found in the United States; how to control milfoil, which grows from seeds in sediment into matted infestations, so it does not block the use of waterways; and how to eradicate milfoil, if that is a goal.

The Professor characterized Eurasian milfoil, which is typically found in the Northeast and Midwest and not as far south as North Carolina, as a “weak submersed aquatic perennial.”

During an excellent question-and-answer session with the Town Council after his talk, Dr. Richardson said the presence of the noxious invasive weed in a waterway varies from year-to-year—depending on such factors as water salinity and temperature, rainfall amounts, the effects of storms, waterway shading, and plant disease.

Dr. Richardson explained that there are 15 herbicides available to treat milfoil, and they come in either a granular (pellets) or liquid form. They all use a chemical known as 2,4-D (2,4-dichlorophenoxyacetic acid), which was an ingredient in Agent Orange, an herbicide and defoliant used by the U.S. military during the Vietnam War that caused harm to human beings.

It was not the 2,4-D in Agent Orange that caused the herbicide’s toxicity, Dr. Richardson said in response to a question from the Council. It was the combination of 2,4-D with 2,4,5-T (Trichlorophenoxyacetic acid), whose synthesis produces dioxin, which is highly toxic to animals and humans.

2,4,5-T is no longer used in U.S. herbicides.  

At its May meeting, the Town Council considered signing a Memorandum of Understanding (MOU) with the N.C. Dept. of Environmental Quality to enter into a 50-50 cost-sharing milfoil eradication treatment partnership. (See The Beacon, 5/4/24.)

Only three Town Council members attended the May meeting, and they voted not to take any action on milfoil eradication until NCDEQ conducts a territorial survey of the weed in Southern Shores waterways. (See The Beacon, 6/10/24.)

After Dr. Richardon’s presentation last week, the full Council unanimously approved signing a revised MOU with NCDEQ for a $2,000 aquatic vegetation survey to be conducted between June 3 and Aug. 30, when the weed is reproducing. The survey will determine the distribution and extent of Eurasian milfoil in the canals, and the Town will pay $1,000 toward its cost.

Dr. Richardson said a 2,4-D herbicide presents a “very low risk to animals and humans,” but it can damage other plants and, thus, the aquatic habitat. He also said its effects on milfoil last from 18 months to four years.   

COMMERCIAL DESIGN STANDARDS

The Town Council spent a considerable amount of time reviewing Zoning Text Amendment (ZTA) 24-03, which adds a new section to the Zoning Ordinance on “commercial design standards” (Sec. 36-179) and also new definitions intended to limit the “building area,” i.e., the footprint, in the commercial district.

The ZTA introduces the concept of a “finished area ratio,” which it defines as the “finished area divided by the land area,” where “finished area” is the same as heated “living space” (Town Code sec. 36-57) and “land area” means “the net acreage of a lot.” A proposed commercial design standard in ZTA 24-03 limits the “finished area ratio” for all buildings to 0.35.    

Because of time constraints, we did not attend the Planning Board’s May 20 meeting, during which members discussed ZTA 24-03, or listen to the meeting videotape. We understand from Deputy Town Manager/Planning Director Wes Haskett’s agenda item summary that the Planning Board, by a 3-2 vote, recommended approval of ZTA 24-03 at that meeting, but also “noted,” Mr. Haskett writes, “that the ZTA is for informational purposes, a first pass.” The Board encouraged the Town Council to “consider a larger evaluation or study of the Town’s commercial properties in the commercial corridor.”

You will find ZTA 24-03 on pp. 22-27 in the June 4 meeting packet. It also has a proposed change to the off-street parking requirements in the Town Code (Sec. 36-163) that would allow a business to reduce its required parking by one space for every 20 parking spaces, if it plants a shade tree instead. The idea is to reduce the formation of asphalt deserts.

We will not delve too deeply into Council members’ discussion of ZTA 24-03, which was principally led by Mayor Pro Tem Matt Neal, who is a professional builder.

The Council held a public hearing on the ZTA, but no one from the public spoke.

Mr. Neal questioned the new terminology, in particular, the concept of “maximum finished area ratio,” asking where it came from and commenting that “the term is not taught in school.” Floor area ratio is the term he uses and knows and would prefer to continue using.

Mr. Haskett’s response implied that the term came from Mr. Zehner, who previously served as planning director of Nags Head for about 2 1/2 years.

“I like where [the ZTA is] headed,” Mr. Neal said, “I just don’t think it’s a complete document.”    

Councilwoman Paula Sherlock called it an “excellent start.” Councilman Mark Batenic thought the ZTA contained ambiguities and “needs further review” before he could pass it.

Observing that “there’s a lot that needs to be amended” in the ZTA, Mr. Neal suggested forming a consulting group to “blue sky this thing and think about what we want our commercial district to look like.”

Ultimately, the Council unanimously voted to table ZTA 24-03 until its July 2 meeting, at which time we would expect the measure to have been revised to address some of the Council’s concerns.

IN OTHER ACTION:

• The Town Council unanimously approved Mr. Ogburn’s Recommended Fiscal Year 2024-25 Budget of $12,795,709, after it held the State-mandated public hearing. No one from the public spoke.
• The Council unanimously approved designation of the flat top cottage at 13 Skyline Road, which the Town owns and partially renovated, as a historic landmark. No one spoke during the public hearing on the historic landmark designation application except Mr. Haskett.
• The Council unanimously approved a FY 2023-24 budget amendment of $264,789, the funds to come from the Town’s Unassigned Fund Balance and to be applied to street improvements at the end of the third year (June 30, 2024) of the Town’s 10-year street improvement plan. The advance will reduce the amount of work funded in the fourth year, which begins July 1.   
• The Council unanimously approved reappointing regular Planning Board Members Andy Ward and Robert McClendon and Alternates Michael Zehner and Charles Ries to new three-year terms, beginning July 1, 2024 and expiring June 30, 2027.

In her comments at the end of the meeting, Mayor Morey said the Juniper Trail Culvert Replacement Project will start construction “after the first of the year,” rather than at the end of 2024, as the Town Manager had previously announced.

THE PLANNING BOARD will meet on Monday, June 17, at 5 p.m. in the Pitts Center. An agenda has not been posted on the Town website, as of this writing.

By Ann G. Sjoerdsma, 6/14/24

Dare County has tentatively scheduled a revaluation of all property countywide for Jan. 1, 2025—just five years after it conducted its last real estate appraisal and assessment for tax purposes. This is a shocking change from the County’s customary practice.

The State of North Carolina requires all counties to conduct property revaluations at least every eight years, on an “octennial cycle.” (See N.C. General Statutes sec. 105-286) Counties may “advance” the revaluation cycle, however, if they choose.

Our records show that Dare County has observed a septennial revaluation cycle in recent years, having conducted revaluations on Jan. 1, 1998, Jan. 1, 2005, Jan. 1, 2013, and Jan. 1, 2020. It has never before scheduled a five-year cycle.  

News of the County’s tentatively scheduled revaluation next year is the most significant detail uncovered by The Beacon in its review of Town Manager Cliff Ogburn’s recommended fiscal year 2024-25 budget for the Town of Southern Shores.

The recommended budget included in the Town Council’s meeting packet totals $12,795,709, an increase of $22,217 over what the Town Manager (and The Beacon) previously reported. It will be subject to a State-required public hearing at the Town Council’s regular meeting Tuesday.

The Town Council will meet at 5:30 p.m. in the Kern Pitts Meeting Room for what appears on paper to be a business-heavy agenda.

For the agenda and meeting packet, see: https://mccmeetings.blob.core.usgovcloudapi.net/soshoresnc-pubu/MEET- Packet-db4132f33646488b9d04fe19680873c3.pdf.

PRESENTATIONS ON AFFORDABLE HOUSING AND MILFOIL TREATMENT

Also on the Council’s busy agenda are two special presentations:

The first by Planning Board First Alternate Michael Zehner concerns residents’ interest in exploring the problem of (if, indeed, they believe there it is a problem) and potential solutions for affordable housing opportunities in Southern Shores.

The second by Dr. Rob Richardson, the Aquatic and Non-Cropland Weed Specialist at N.C. State University, concerns the noxious weed, Eurasian milfoil, which exists in Southern Shores’ canals and Ginguite Creek, and whether eradicating it with an herbicide that contains the chemical, 2,4-D, poses harm to aquatic and/or human life.

Mr. Zehner, a professional planner who has been attending meetings of the Dare County Housing Task Force, led a discussion about affordable housing at the Town Planning Board’s May 20 meeting. We encourage all property owners to listen to this discussion, which begins at the two-hour mark of the meeting and lasts just over 40 minutes. You will find the meeting video at https://www.youtube.com/@SouthernShores/streams. (We elaborate on this discussion below.)  

We previously reported on the Town’s interest in treating milfoil in the canals and Ginguite Creek with a 2,4-D herbicide, 2,4-D being short for the chemical 2,4-dichlorophenoxyacetic acid, which is notorious for being an ingredient in Agent Orange pesticide. Two,4-D herbicides and pesticides are currently the subject of litigation in federal court in Washington, D.C. between three non-profit environmental groups and the U.S. Environmental Protection Agency. (See The Beacon, 5/4/24)

The Town Manager has sought an Aquatic Weed Control grant from the N.C. Dept. of Environmental Quality (NCDEQ) that would permit the Town to partner with NCDEQ in a 50-50 cost-sharing milfoil treatment project. At the May 7 meeting, Mr. Ogburn presented the Town Council with a Memorandum of Understanding (MOU) with NCDEQ that it had to approve for the $40,000 treatment plan to go forward. (See The Beacon, 5/4/24.)

Only three Town Council members attended the May meeting: They voted not to take any action on treatment of the Town’s milfoil until NCDEQ conducts a territorial survey of the invasive weed in the canals and Ginguite Creek. (See The Beacon, 6/10/24.)

The Town Council will have a different MOU with NCDEQ before it on Tuesday. This one is an agreement for a $2,000 aquatic vegetation survey to be conducted by NCDEQ between June 3 and Aug. 30.  

Mr. Ogburn informed the Council last month that Dr. Richardson vouched for the safety of NCDEQ’s herbicide, but as The Beacon has subsequently learned, Dr. Gavin Dehnert, an emerging contaminants scientist with Wisconsin Sea Grant at the University of Wisconsin-Madison, has found that treatment with 2,4-D kills young fish in freshwater lakes. Dr. Dehnert found in both laboratory and lake studies that young fish experience up to a 35 percent increase in mortality when they are exposed to 2,4-D.

We suggest that Mr. Ogburn give Dr. Dehnert a call.  

GETTING BACK TO THE BUDGET

Mentioned in passing on page seven of the Town Manager’s overview message to the Town Council, Dare County’s 2025 revaluation plan jumped out at us with a consequence lacking in any of Mr. Ogburn’s requested FY 2024-25 budgetary expenditures, which essentially repeat those of FY 2023-24—with one big exception. (Mr. Ogburn asked department heads to think in terms of a two-year budget, and FY 2024-25 is the second year.)

As we have reported, the big exception is the addition of some major capital expenditures in FY 2024-25, including a $2.1 million appropriation to pay for the Trinitie/Juniper Trail Culvert Replacement project. Construction is expected to begin at the bridge in late 2024, according to the Town Manager.

Other FY 2024-25 capital expenditures requested by Mr. Ogburn include $380,000 for an addition and modifications to the Town Hall building; $290,400 for construction of a sidewalk on the west side of Duck Road (N.C. Hwy. 12) from East Dogwood Trail to Hickory Trail; and $150,000 for maintenance and repair of the existing sidewalk along Duck Road north of Hillcrest Drive.

The Town Hall addition, which has been discussed in previous Council meetings, will expand the space for records collection and storage in the Planning and Code Enforcement Department.

According to the Town Manager’s report, the cost of the sidewalk from East Dogwood to Hickory will be offset by a $118,855 grant from the Outer Banks Tourism Bureau.

The recommended budget total of $12,795,709 is an increase of $3,064,259, or 31.7 percent, over the adopted budget for FY 2023-24. After multiple budgetary amendments during the fiscal year, the actual FY 2023-24 budget was $12,005,501, according to Town data. (See The Beacon, 5/10/24.)

Town history teaches us that the adopted FY 2024-25 budget also will grow with amendments to a much larger actual budget, but so, too, will anticipated revenues.

To balance the FY 2024-25 budget, the Town Manager has proposed appropriating $2,940,988 from the Undesignated Fund Balance (UFB), which, “ideally,” Mr. Ogburn writes in his May message to the Town Council, “should be used for future projects rather than budgeted for annual operating expenses.” (The additional $22,217 requested by the Police Department for staff expenses will be covered by the UFB.)

The Town Council has resolved that $3.5 million must be kept in reserve in the UFB for emergency and disaster-relief purposes. Mr. Ogburn reports that $4,830,326 is now available for use in the FY 2024-25 budget over the reserve amount.  

FY 2024-25 marks the fourth year of debt service payments for the 2022 beach nourishment project, which was budgeted at $11,325,189. The Town’s contribution to the cost is $6,065,823, which it satisfies with a special annual tax assessment levied both townwide and according to designated municipal service districts (MSD). The County contributed $4,371,401 to the nourishment project, and the remainder was made up by an NCDEQ grant.

The Town could change the tax rates for beach nourishment debt payment, as long as the required revenue is raised, but the Town Manager makes no recommendation to do so, nor does he recommend a general ad valorem tax rate increase. The property tax levied by the Town on each $100.00 of real and personal property valuation remains 23.58 cents ($0.2358).

We previously published the total appropriations requested by the Town Manager for each Town department. (See The Beacon, 5/10/24.) The only change in those totals is the $22,217 increase in the Police Department budget: from $2,409,492 to $2,431,709.

You will find the Town Manager’s recommended budget at:

https://www.southernshores-nc.gov/sites/default/files/fileattachments/town_council/ page/3159/tm_recommended_fy_24-25_budget_filed_with_clerk.pdf.

For Dare County’s notice about the proposed Jan. 1, 2025 revaluation, see: https://darenc-redesign.prod.govaccess.org/departments/tax-department/appraisal#:~:text=The%20next%20countywide%20revaluation%20is,tentatively%20scheduled%20for%20January%201%2C%202025.

DOES SOUTHERN SHORES HAVE AN AFFORDABLE HOUSING PROBLEM?

In the Planning Board’s discussion last month, Michael Zehner, who moved to Southern Shores in 2020 and was appointed the Second Alternate to the Board in July 2021, proposed holding “educational sessions” in town about affordable housing and encouraging people to “air their concerns” about its availability in Southern Shores.

Mr. Zehner said the then-cheapest house for sale in Southern Shores was listed at $525,000 and defined affordability as costing “no more than 30 percent of household income.”

(We know the $525k house because we were house-hunting in 2019 when it sold in July that year for $337,500. It is tiny and far from the beach. There is an even smaller house for sale now on South Dogwood Trail for a jaw-dropping $399,000. It is a remodeled, 1950s-era cottage.)

He suggested a starting point for a conversation among residents would be addressing whether people believe a problem in affordable housing exists in Southern Shores and “agreeing what the problem is.”    

Mr. Zehner, who was elevated this year to First Alternate on the Planning Board, expressed an interest in being “proactive,” in taking a leadership role and embarking on a study of both the problem of, and strategies for increasing, affordable housing in Southern Shores.

He envisions a “Town initiative,” he said.

A native Virginian, Mr. Zehner came from Wellesley, Mass., in 2019 to be planning director for the Town of Nags Head. According to his online CV, he served two years, eight months, in that position and is now director of planning and community development with The Berkeley Group, a consulting firm in Bridgewater, Va., that offers local government and public agency services.

Among the five regular Board members—Mr. Zehner sits on the dais during meetings, but is not a voting member—only Jan Collins enthusiastically supported him. She, too, spoke of being proactive and addressing “what we want Southern Shores to be like in 20 years.”

The others said very little, except when the topic of accessory dwelling units arose. ADUs, which provide income to primary homeowners and potentially open up rentals to more year-round occupants, are one way to address the need for affordable housing.

For the record, while the Town of Southern Shores does not allow living quarters in accessory structures, it does permit “temporary family healthcare structures,” as defined in Town Code sec. 36-168(5), to help facilitate care to a mentally or physically impaired relative. Homeowners in Chicahauk are subject to a property association covenant that prohibits ADUs. (See The Beacon, 3/21/24.)   

“From a zoning perspective,” Southern Shores Planning Director Wes Haskett explained to us earlier this year, “someone can live in an accessory structure with living space, and they can be rented, but [the structure] can’t have all of the elements that make up a dwelling unit.”

This has been interpreted in the past to mean that they cannot have ovens and other cooking appliances.

“We want to maintain what we have” in Southern Shores, said Board Chairperson Andy Ward, a longtime resident homeowner who has been critical of ADUs, “and try to be good stewards to a situation that we will never solve at this level.”

At Mr. Ward’s suggestion, the Board agreed to have Mr. Zehner speak to the Town Council about the issue. Ms. Collins suggested that he ask the Council to appoint a study committee.

The Council may wish to wait until after Dare County revalues all real property next year, and we all learn just how “affordable” the booming local housing market is.

By Ann G. Sjoerdsma, 6/2/24