Grading site

Local Government Economic Development Powers “Clarified”

On October 20, 2015, the Governor signed Session Law (S.L.) 2015-277, placing into effect [more…]
Kinston, NC

Development Finance Initiative: Rebuilding North Carolina one town at a time – Southern City

This article was originally published in the November/December edition of Southern City, as “Rebuilding [more…]
Aerial downtown

How a North Carolina Local Government Can Operate a Land Bank for Redevelopment

If America’s cities and towns are to realize their greatest potential as attractive and [more…]
Shell building under construction 2

When May NC Local Governments Pay an Economic Development Incentive?

News outlets regularly report about the latest company that was lured to North Carolina [more…]

The Community and Economic Development program at the School of Government provides public officials with training, research, and assistance that support local efforts to create jobs and wealth, expand the tax base, and maintain vibrant communities. We deploy the resources of the University to support the development goals of communities in North Carolina.

Recent Blog Posts |

  • What @sog_ced is reading on the web: November 2015

    CED_Icon_for_TwitterThe following are articles and reports on the web that the Community and Economic Development Program at the UNC School of Government shared through social media over the past month. Follow us on twitter or facebook to receive regular updates.

    Items of interest related to CED in North Carolina:

    News item on graduate student project in Wilkesboro, NC via the School of Government’s community revitalization course: ‪ 

    Developer to use Durham’s voluntary density bonus for affordable housing in development project – first time in City’s history. ‪ 

    Other CED items:

    The Securities and Exchange Commission (SEC) adopts rule allowing crowdfunding with non-accredited investors, effective Jan 2016. ‪ 

    ‪Governing article explores research on whether tax cuts spur economic activity (research finds negative correlation). 

    New component added to the Choice Neighborhoods program – allows for early-stage investments in planning process, enabling activities such as land banking, pocket parks, fresh foods initiatives, and gap financing for economic development projects: ‪  Read more »

  • The Triple Bottom Line in Local Government Community Economic Development


    North Carolina Triple Bottom Line1

    A central tenet of community economic development is the belief that in fostering a healthy economy, we are working towards building healthy, vibrant communities. But many would contend that a healthy economy is only one piece of the puzzle. Local governments are increasingly paying attention to other elements of community development work in order to build healthy communities, realizing that they cannot foster a strong economy in isolation from social and environmental factors. One approach to development that addresses these issues is the “triple bottom line”, a method that integrates three dimensions of performance: social, environmental, and financial. Under the triple bottom line approach, growth and development should consider not only economic factors, but also social and environmental impacts of any initiative.

    The triple bottom line framework has been adopted and championed by a wide variety of actors, including large corporations, community based nonprofit organizations, environmental groups, and international development agencies. Experts say that triple bottom line sustainability is most achievable at the regional and local scale, so it seems natural that local governments would adopt this approach in their economic development efforts. But what strategies can local governments in North Carolina use to foster triple bottom line impacts?

    Read more »

  • Commenting on the NC Qualified Allocation Plan year the North Carolina Housing Finance Agency (NCHFA) reviews the Qualified Allocation Plan (QAP) that describes the selection criteria for developers submitting projects for Low-Income Housing Tax Credits (LIHTC). LIHTC credits provide developers the ability to feasibly develop affordable housing. During the revision process, developers can submit comments regarding the previous QAP.

    As of late October, the NCHFA had received over twenty-five comments. The NC QAP affects developers in NC as well as in neighboring states with five of the submitted comments coming from developers outside of NC. In addition to comments by private developers, nonprofit organizations and law firms also provided comments. Three topics that were frequently raised in the comments relate to the principal cap, tiebreaker method and developer experience.  Read more »

  • Re-Shaping Suburban Spaces

    DSC_0372The story of Research Triangle Park is in some ways the story of North Carolina’s regions over the last 50 years. Farms and forests gave way to substantial suburban development. Now, as growth continues and suburban spaces show their age, a transition is happening in RTP—and across the state.

    Read more »

  • 50 Years of HUD: Choice Neighborhoods

    CNIlogoIn recognition of the Department of Housing and Urban Development (HUD)’s 50th anniversary, the CED blog is highlighting a couple of HUD’s newest programs that cities can use to help spur revitalization in distressed neighborhoods. One of these programs is Choice Neighborhoods.

    Choice Neighborhoods launched in 2011 as part of the Obama administration’s strategy to address poverty, particularly high poverty neighborhoods. As mentioned in a previous post, high poverty neighborhoods leave its residents in a vacuum of the very opportunities they need to lift themselves out of poverty. Choice Neighborhoods, like many of the Obama administration’s initiatives, works to bring opportunity into these impoverished places. Read more »

  • Changes to Municipal Service District (MSD) Authority

    In the state budget bill, S.L. 2015-241, the legislature made a few changes to municipal service district (MSD) authority. An MSD is a defined area within a municipality in which the unit’s governing board levies an additional property tax in order to provide projects or extra services that benefit the properties in the district. (Counties have similar authority, referred to as county service districts.) A service district is not a separate government. It is simply a mechanism whereby a local government may raise money to pay for services or projects from those property owners that most directly benefit from the services or projects. (Click here for more information on MSDs.)

    Under general law, a municipality may define one or more service districts for any of the following functions:

    • Beach erosion control and flood and hurricane protection works
    • Downtown revitalization projects
    • Urban revitalization projects
    • Transit-oriented development projects
    • Drainage projects
    • Sewage collection and disposal systems
    • Off-street parking facilities
    • Watershed improvement, drainage, and water resources development projects

    (There are a few additional authorized purposes for certain municipalities. See G.S. 160A-536.)

    The most common municipal service districts are established for downtown or urban area revitalization. A municipality may establish one or more downtown revitalization districts in its central downtown area. It may form an urban area revitalization district in an area that meets any one of these criteria: (1) it is the central business district of the municipality; (2) it consists primarily of existing or redeveloping concentrations of industrial, retail, wholesale, office, or other significant employment-generating uses; (3) it is located in or along a major transportation corridor (with certain restrictions); or (4) it is centered or focused around a major concentration of public or institutional uses.

    Downtown and urban area revitalization districts are commonly referred to as business improvement districts or BIDs. Establishing a BID allows a municipality to levy an additional property tax on real and personal properties within its central downtown, or other commercial area, to fund a variety of downtown projects and services, such as street and sidewalk improvements, promotional and marketing efforts, increased security, additional trash collection, and building façade improvements. (Click here for more information on BIDs.)

    Section 15.16B of S.L. 2015-241 (state budget) imposes limitations on a municipal board’s authority to levy an MSD tax for any of the authorized purposes. It also mandates that a municipality follow certain procedures before entering into a contract with a private entity to provide services within certain types of MSDs—namely those established for downtown or urban area revitalization. Finally, the new law designates a study commission to look at the feasibility of allowing property owners to opt out of an MSD. Read more »

  • Primer on Low-Income Housing Tax Credits: 2015 North Carolina Qualified Allocation Plan

    Wesley Ridge Affordable Senior Apartments in Lumberton, NC developed by Weaver-Kirkland Development

    Every year the North Carolina Housing Finance Agency (NCHFA) awards applicants with Low-Income Housing Tax Credits (LIHTC) – the most important resource for creating affordable housing in the United States today. The NCHFA uses federal and state funds to produce affordable housing by partnering with for- and non-profit developers. The Applicants are awarded with tax credits equal to nine percent of the qualified cost of building or rehabilitating a property. Without LIHTC, building affordable housing would not be feasible. In 2015, forty-nine projects in NC were awarded with low-income housing tax credits totaling over $25 million and 3,600 units. This blog post will dive into the LIHTC process specifically diving into the mechanics of the Qualified Allocation Plan (QAP). Read more »

  • What @sog_ced is reading on the web: October 2015

    CED_Icon_for_TwitterThe following are articles and reports on the web that the Community and Economic Development Program at the UNC School of Government shared through social media over the past month. Follow us on twitter or facebook to receive regular updates.

    Items of interest related to CED in North Carolina:

    Charlotte Business Journal explains details of state incentives bill signed by Governor McCrory: ‪ 

    NC Commerce LEAD Feed on the impact of the nearly 900 furniture-related manufacturing businesses in North Carolina: ‪ 

    In-depth interview with leadership of the Greensboro economic development partnership: ‪ 

    Are minority-owned firms in North Carolina on the rebound? Data from the North Carolina Institute of Minority Economic Development says yes. ‪ 

    Urban areas drive population growth in North Carolina while rural areas see decline – can state policy make a difference? ‪ 

    HandMade in America closing after 20 years of supporting artisan/arts-based small business and economic development in western North Carolina: ‪  Read more »

  • Design Thinking

    how-museums-can-use-the-design-thinking-process-to-delight-and-engage-visitors-18-638If you feel like things have changed recently in the look and feel of your favorite government website, then well, you might be on to something. In late September of this year, new design standards were released for federal government websites. The focus was on the design of the websites—from the layout to the font, the design of a website impacts how well citizens understand and use it.

    Similarly, one of the most prominent buzzwords around business in 2015 is “design-based thinking.” While this approach has less to do with a font style or background color of a website, it is derived from essentially the same way of thinking. What exactly does it mean to think with a design perspective? How could that impact local government and community economic development? This post provides an overview of design thinking and its potential usefulness for local governments in North Carolina.  Read more »

  • Local Government Economic Development Powers “Clarified”

    Grading siteOn October 20, 2015, the Governor signed Session Law (S.L.) 2015-277, placing into effect several “clarifications” to the primary economic development statute used by local governments, G.S. Chapter 158, Article 1, “The Local Development Act of 1925.” The modifications fall into three categories: first, broad discretionary language was removed; second, new procedural requirements were imposed; and third, historic rehabilitation was explicitly included within the penumbra of allowable economic development activities, subject to the same limitations that have long been imposed on such activities by the statute and the North Carolina Constitution. Each will be addressed in turn. Read more »

Follow @sog_ced