Board of Commissioners - Regular Meeting

All right. Good morning everyone. This the Wednesday May 6th meeting of the board of commissioners is hereby reconvened. If you will please join me in a few moments of silence. And now, as you are able, if you will please rise and join me in the pledge of allegiance. I alian to the flag of the United States of America and to the republic for it stands one nation under God indivisible with liberty and justice for all. That brings us next to the adoption of the agenda and a motion would be in order.

So move. Have a motion. Is there a second? Second. Have a motion and a second. All in favor say I. Opposed. All right. Um and that brings us to recognitions and we'll call first on Chief Hail.

Good morning, Mr. Mayor and Commissioners. I'm here before you today to recognize senior police officer Matt Honeyford on his 15 years of service with the town of Net. Matt joined our agency after his service with the Dair County Sheriff's Office and service in the United States Coast Guard. He's assigned as a K9 handler in 2012 and has just recently completed another handler se session with his new partner Onyx. I will say Matt is the driving force behind the K9 programs throughout Dair County. It is pleasing for me that others seek him out when they have questions or issues within their K9 teams and rely on him for his wealth of knowledge. Matt is a true professional and is always willing to help his fellow officer in any way he can. He seeks out training opportunities within the K9 world and has built great relationships throughout North Carolina and Virginia to bring first class training here to Nags Head over the past few years. In his off time, Matt enjoys fishing, being on the boat in general with his wife and kids, and maybe not so much, but hauling his daughters around for travel softball and volleyball. I do have a little fun fact for you. Um, we've had some officers in the past that have uh been a little bit somewhat famous uh through bar stool sports, but here we truly have our own celebrity. Matt was a uh baseball player, played at Florida, Florida International um and was drafted by the San Francisco Giants and played two years in their minor leagues before joining the United States Coast Guard. So Matt is truly our celebrity and I believe he has an old baseball card from the past as well. So Matt, congratulations on your 15 years and we look forward to many more.

Thank you. Thank you. Thank you.

Thank you. That's right.

And that brings us to to what is often a bittersweet day in the town of Nags Head. We have a retirement this morning. Nancy,

good morning, Mr. Mayor and Commissioners, and welcome, Melanie. We are here today to recognize and congratulate Buddy Beichum on his retirement from the town of Nags Head. But he was just shy of 18 years of service in water operations when he retired on April 30th. Buddy was a seasoned mechanic looking for a change in careers when he started in June of '08. His background was an asset to the water department. When things needed fixing, Buddy was willing and able to step in and make repairs. Buddy became a certified bewell operator and an aid distribution technician. He was also certified in erological sampling and testing in our state certified lab. Buddy took pride in his work. Whether it was completing lab tests and paperwork, calibrating equipment, or painting fire hydrants, Buddy took the time to make sure it was done right. Despite myself and David Perry, Buddy somehow managed to keep the plant and vehicles needed clean, and I personally thank you for that. But he has already begun checking off his bucket list. Just last month, he jumped out of a perfectly good airplane. We wish you all the best in your future adventures and thank you for all you did for water operations in the town of Nad. Yes, sir. I'm going to ask Buddy to stay and for the board to come around.

Which way you want to go?

I'm following you. primarily grateful Appreciation service. Next on our agenda is a proclamation for National Police Week. And Chief Ho, if you will, are you going to speak to this this morning?

I am going to read I will read the proclamation, but I didn't know if you wanted to say a little bit.

Yes, sir. I truly do and thank you for this opportunity. Um this police officers um Memorial Week is very um hits us within our heart. We lost one of our own back in 2009. Um officers here today, there are still some that weren't with Earl, some that have only heard the stories of Earl. Um and there are many stories uh to go around with Earl because he he truly loved being a cop. Um, he truly believed in the do unto others as you would have them do unto yourself. Um, he was fun to be around. He was quiet on some days and then other days he would just be out there and couldn't stop laughing. Um, but he was truly a good friend. He was a a great police officer, a great mentor in law enforcement for those that he had the opportunity to train. Um, and I tell you, each year we send officers to DC for the National Memorial and to North Carolina for the state memorial. Um, last just a couple weeks ago in April, um, Detective Lipkin and I went to Greensboro to be with Kim at the state memorial. Um, and it's fun to hang out with her and to reminisce on old times and we we cry a little bit. we uh laugh a little bit, but she made comments to others and family members that were there this year that had just lost um loved ones in the line of duty that is 17 years this year and she said this department of Naget has never left her alone. That means something to me. It speaks highly of our department because listening to her from stories of other agencies that after the first year they hear nothing from them. It breaks my heart. But Kim Sammy Joe and Paige will never be forgotten from Nag and we look forward to continue that tradition each

and every year of being with her. Um she doesn't live close anymore so some of us don't see her very often. We communicate back and forth from text and phone calls, but we send her flowers every year to just let her know that we're there for her. So, I appreciate your time and recognition of this.

Thank you, Chief, and all of those in the department who continue to to honor that memory. This is a proclamation for National Police Week. Whereas the Congress and President of the United States have designated May 15th as National Police Peace Officers Memorial Day and the week in which May 15th falls as National Police Week. And whereas the members of the Nags Head Police Department play an essential role in safeguarding the rights and freedoms of the residents and visitors of the town of Nags Head. And whereas it is important that all citizens know and understand the duties, responsibilities, hazards, and sacrifices of their law enforcement agency and that members of our law enforcement agency recognize their duty to serve the people by safeguarding life and property by protecting them against violence and disorder and by protecting the innocent against deception and the weak against oppression. And whereas the men and women of the Nagsad Police Department unceasingly provide a vital public service. And whereas each of us should take the time to reflect on the ultimate sacrifice Sergeant Earl Murray Jr. made for the town of Nags Head on May 15, 2009, and the rest of the officers who have done so nationwide. And let each of us keep their family, friends, and fellow officers in our thoughts and prayers. Now therefore, the Nags Head Board of Commissioners calls upon all citizens of the town of Nags Head and upon all patriotic, civic, and educational organizations to observe the week of May 10th through 16, 2026, as National Police Week with appropriate ceremonies and observances in which all of our people may join in commemorating law enforcement officers, past and present, who by their faithful and loyal dedication to their responsibilities have rendered a dedicated service to their community and in so doing have established for themselves an enviable

and enduring reputation for preserving the rights and security of all citizens. Therefore, we do hereby proclaim the week of May 10 through 16, 2026 as National Police Week and call upon all citizens of Nags Head to observe the 15th day of May, 2026 as National Peace Officers Memorial Day in honor of those law enforcement officers who through their courageous deeds have made the ultimate sacrifice and sacrifice to their community or have become disabled in the performance of duty. and let us recognize and pay respect to the survivors of our fallen heroes. This being the sixth day of May, 2026. Having heard the proclamation, a motion to adopt would be in order.

So moved. I have a motion. Is there a second? Second. Have a motion and a second. All in favor signify by saying I. I opposed. Great. Thank you. Thank you, Chief. And that brings us next. Nancy's coming back up for a proclamation for National Public Works Week.

Good morning. Um, public works week is May 17th through the 23rd. This year's theme is rooted in service powered by community. The town of Nags Head's public works team makes service to our community a top priority and in turn our community empowers us to do our best. In public works some services are visible like maintenance of town buildings, grounds, public accesses and trash/bulk collection. While others are head hidden like public works admin, equipment/vehicle upkeep, water production and water distribution and storm water maintenance. To celebrate public works week, we are planning an open house on Tuesday, May the 19th from 100 p.m. to 2:30 at Fleet Maintenance. We would like to invite you and the public to tour our facilities and enjoy some light refreshments. Public services is not always seen, but we're always there.

Yes, you are. Thank you, Nancy. A proclamation for National Public Works Week. Whereas public works professionals focus on infrastructure, facilities, and services that are vital importance to sustainable and resilient communities and to the public health, high quality of life, and well-being of the people of Nagshead. And whereas these infrastructure, facilities, and services could not be provided without the dedicated efforts of public works professionals who are responsible for rebuilding, improving and protecting our town's transportation, water supply, water treatment, and solid waste systems, public buildings, and other structures and facilities essential for our citizens. And whereas it is in the public interest for the citizens, civic leaders, and children in Nagad to gain knowledge of and maintain an ongoing interest and understanding of the importance of public works and public works programs in their respective communities. And whereas the year 2026 marks the 66th annual National Public Works Week sponsored by the American Public Works Association. Now therefore, be it resolved that the Nags Head Board of Commissioners do hereby designate the week of May 17 through 23, 2026 as National Public Works Week and further extends its appreciation to our public services department for the vital services they perform. We encourage all citizens to thank and celebrate our public services employees and to recognize the substantial contributions they make to protecting our health, safety, and quality of life and for making Nagad a great place to live, work, and visit. This being the sixth day of May, 2026. Having heard the proclamation, a motion to adopt would be in order.

So moved. I have a motion and a second. All those in favor signify by saying I. I opposed. Thank you. Thank you, Nancy. That brings us next to uh public comment and I will turn this over to Mr. Lighty.

Thank you, Mr. Mayor. At this time, uh the board of commissioners welcomes members of the public to comment to the board on matters of interest or concern. This is not an opportunity for dialogue, and the board rarely responds to public comment, but anybody who wishes to comment on general matters can do so at this time. I will also note that there are a series of public hearings on the agenda for today. And if anyone is here to uh provide comment for any of those public hearings, you should wait until the public hearing is called. But for anyone else, if you will please uh go to the podium and start by telling us your name and where you live and then addressing your remarks to the board. Anybody?

Seeing none, Mr. Mayor, at this time we will close the public comment session. All right. Very good. Thank you. Uh that brings us to the consent agenda which is contains six items which you have before you and a motion would be in order. So move. I have a motion. Um is there a second? Second. Have a motion and a second to approve the consent agenda. All those in favor signify by saying I. I opposed. Great. Thank you.

Uh that brings us now to our uh several public hearings. And um starting with public hearing number one, uh the special the vested right special use permit um for the cancer treatment center. And I'll turn this over to John Lighty and Kelly Wyatt.

Thank you, Mr. Mayor. Um at this time, we will begin the public hearing to consider a vested rights special use permit and site plan amendment submitted by Withers Ravenel on behalf of Outermax Hospital for the cancer treatment center located at 4927 South Croatan Highway. This includes a parking reduction request as allowed by the town's UDO. Uh on this matter, the board sits as a quai judicial body. Uh and as a result, there are certain special rules and procedures that must be followed. And I'll go over those right now. When uh the board is considering an application for a special use permit, a site plan amendment or a vested rights application, the board of commissioners sits as a quai judicial body. A quai judicial hearing is the process for the board to adjudicate how the general law applies to a particular situation based on an evidentiary record that is presented during the hearing. Your two key responsibilities are to one determine contested facts and two apply the legal standards to the facts. You may apply only those standards already contained in the ordinance. You are not permitted to change or modify those standards during this hearing or as part of your decision in the case. In conducting this hearing, certain safeguards must be instituted in order to uh to give the applicant a fair hearing. The applicant has the right to cross-examine witnesses and offer rebuttal evidence. The procedures of the ordinance must be followed. The board members may question any witness at any time during the hearing, and if you wish to do so, just let me know. Questions from the floor will not be permitted except by cross-examination from any of the sworn witnesses who are recognized to speak. A member must not vote on the application if the outcome of the matter being considered is reasonably likely to have a direct and substantial financial impact on the member. If such a direct and substantial financial conflict exists, the member should disclose it

and ask to be rec excused from consideration of the matter. Also, if any of the members present have had any contact with anyone prior to this hearing in which the particulars of the application were discussed, or if you've received letters, email messages, phone calls, or contact from anyone concerning this matter prior to the hearing, you must disclose those communications. You must base your decision on this application entirely on the facts presented during this hearing and disregard the particulars discussed with the applicant or other parties. A member must base his or her decision on the evidence presented during the hearing. Any member who has developed a predetermined opinion or bias on the outcome of this application before the hearing must not participate in the decision on the application. Your decision must be based on competent, substantial, and material evidence properly entered into the record of this hearing. Crucial facts used to determine the outcome of the hearing must be based on sworn statements made by witnesses during the hearing. While you may be presented before or during this hearing with copies of unsworn statements contained in letters, emails, and so forth, such unsworn evidence can only be used to corroborate or supplement other sworn evidence presented during the hearing. Unsworn evidence, such as letters or emails, can never form the basis for your decision. So, at this time, if any member needs to recuse themselves from hearing this matter for one of the uh conflict of interest reasons that I've mentioned, uh please request that a motion be made to recuse you from participating in this hearing or voting on this matter at this time. All right. If none at this time, if any member needs to disclose a communication about the subject of this hearing that the member has had with one of the applicants or another person prior to this hearing, now is the opportunity for you to disclose such communications. All right. So, uh at this time, uh the clerk will swear in uh the applicant and

all witnesses who plan to provide testimony or evidence in the case. If you plan to speak or think you might want to speak, please stand so that the clerk may administer the oath. All right. Thank you, Madam Clerk. At this time, we'll begin the evidentiary presentation with the staff's analysis presented by planning director Kelly Wyatt.

Thank you. Um, good morning, mayor and commissioners. I'll start out by putting the site plan um that we're going to be talking about up on the projector so we can look at it as we discuss the request. Um this item is a request submitted by Withers Ravenel on behalf of Outerbanks Hospital for a vested right special use permit site plan amendment associated with the cancer treatment center located at at 4927 South Croatan Highway. Um the request includes a a parking reduction of three parking spaces associated with a relatively minor expansion of the HVAC mechanical equipment area and um relocation of the storm water basin. The purpose uh for the HBAC expansion is to accommodate upgraded building systems necessary to maintain appropriate environmental conditions within the cancer treatment center, particularly um treatment compounding and related medical operations. The property is located within the SPDC Village Hotel District and is already developed with an existing medical center and um cancer treatment center. Um I would like to note that this request does not involve any expansion of patient treatment services um patient treatment areas, changes to the approved use, increase in patient capacity or changes in the operational characteristics of the facility. Anyway, um the request is really centered around mechanical equipment expansion and the associated parking adjustment necessary to accommodate those improvements. Um if you want to look at the site plan, um here's the primary building and really what we're talking about is work

occurring here where I have the cursor. um to bring this up on GIS just so you can familiarize yourself with it. It's going to be right in here. You can see the existing HVAC equipment here. You can see some storm water measures here. And then you have your parking. Essentially, all of this will shift east. So, additional mechanical equipment will be placed where the storm water basin is now. The storm water bas will now go into this area. It's easier to visualize on a um on an aerial and maybe it is here, but um as you can see, there's where that encroachment um is going to occur. Um, as part of the original approval process back in 2020, uh, this board of commissioners, uh, previously approved a modified parking arrangement for the cancer center based upon their unique operational characteristics. Um because outpatient infusion centers are not specifically identified within the town's parking schedule, the applicant originally worked with the town to develop a parking approach that more accurately reflected the actual operational demand of the facility rather than applying the traditional medical office parking ratio which would have drastically overparked um this development. Uh the property currently contains 57 parking spaces. The proposed HVAC expansion would require removal of three of those spaces. Um staff has spent a considerable amount of time reviewing and the parking analysis which was require um required by the board back in

2020 and has been included as an attachment um within your package. Um one of the more important considerations here is the operational nature of the cancer treatment center itself. The infusion center contains 10 treatment bays and due to the nature of infusion therapy, only one patient can occupy that bay at any time. Using parking methodology more comparable to a dialysis style medical facility, essentially one space per treatment bay plus the employee demand, the estimated parking demand for the infusion component is approximately 25 parking spaces. When combined with the radiation therapy building demand, the overall estimated operational parking need for the site is approximately 47 parking spaces. Even after the requested reduction, the site will the site will still provide 54 parking spaces, exceeding the estimated demand by approximately seven parking spaces. In addition to the parking methodology itself, the original approval also required the applicant perform postopening parking utilization studies to verify the reduced parking arrangement was adequate. Those studies were completed at six months and at one year um following the opening of the cancer treatment facility. They found that the peak parking utilization reached approximately 32 occupied spaces or roughly 56% of the available parking supply. Based on those observed conditions, staff is comfortable that the requested reduction from 57 spaces to 54 spaces will continue to provide adequate parking without creating any overflow issues or concerns, traffic congestions, traffic congestion or impact to adjacent properties. Outside of the parking request, the remainder of the site remains compliant with all

applicable standards. Um the existing buffering and landscaping will remain in place and continue to function as intended. A limited number um of interior parking lot plantings will be removed. They've already identified where those can be placed. Um so our numbers won't change when it comes to interior parking. Um, with that being said, staff finds that the request is consistent with the land use policy and the requirements of the town code and those conditions listed in um granting a parking reduction. Um, those are in sections uh 10.15.2.1 and 10.15.2.6. Um the planning board uh when they reviewed this unanimously recommended approval of the vested right um special use site plan amendment as presented and staff would recommend approval as well. I'm happy to answer any questions that you may have and we do have um representative from the hospital here as well as Michael Strader with Withers Ravenel should you have questions for him.

All right. First of all, does the applicant have any questions for Ms. Wyatt? If not, does the board have any questions for Kelly? All right. Anything else, Kelly? That's it. All right. Thank you very much. All right. At this time, the applicant may present evidence in support of this application.

Just a general discussion about why we're doing this. The uh essentially the original Could you give us your name, please? My name is James Luchens. I'm with ECU Health. Thank you.

Um, essentially the original HBA system was underdesigned and we have major humidity problems in the compounding rooms. They they require a very low temperature. They work at about 62 degrees and as a result, the humidity problems during the peak summer months. It was literally raining in one of these rooms last year. So, we're trying to fix that. We're actually doing a temporary unit to help with the situation until this can be installed. So, it's very well very much needed. All right. I'm sorry if you will. Hang on just one second. Does the board have any questions for Mr. Luchans? All right. Thank you, sir.

Thank you. And anything further for the applicant? All right. Does uh there was no one else sworn in. So, does the board wish to receive any further evidence before you begin your deliberations on this application? All right. If not, we will conclude the evidentiary presentation of this matter at this time and the board may begin its deliberations. Okay. Um, seeing that there were no questions of either Kelly or the applicant, um, I'll ask if a motion. Um, if anybody would like to put a motion on the floor, I'll make a motion to approve what is presented to us. Okay. Thank you. Is there a second? Second.

All right. We have a motion and a second now. Any further discussion, questions, comments? One thing I would want to add just to remind everyone on this applicant, I remember when this first went through planning board and stuff. One unique thing about this business and we are sight specific with this is this business is very scheduled. Um they don't have walk-ins. It's not something that people can show up and say, "I need service today." It's a very very scheduled business with their patients. Um so their parking is really really well managed. So I I don't see any concerns with this. Okay. Very good. Thank you. Um hearing no further discussion and having a motion on the floor. All those in favor signify by saying I.

I opposed. All right. Great. Thank you very much. Uh that brings us to uh public hearing number two, a UDO text amendment. and uh John and Kelly will continue. All right. Thank you, Mr. Mayor. Uh at this time, we will begin the public hearing to consider um a board of commissioners initiated UDO text amendment to establish new allowable uses um particularly wine bar and tap room with associated supplemental regulations. On this matter, the board sits as a legislative body and therefore sworn testimony is not necessary. But we'll begin with the uh presentation of the staff's analysis again presented by planning director Kelly Wyatt.

Thank you. Go ahead and pull the ordinance up um and I'll try to track live it as best I can while I um move through the staff report. Um as noted, this is a uh board of commissioners initiated text amendment to establish two new use categories within the unified development ordinance. um that is wine bar and tap room along with the associated supplemental regulations. Um the purpose of this amendment is to create clearer regulatory framework for lower intensity beer and wine establishments while maintaining the town's long-standing prohibition on standalone bars and nightclub type uses. Currently, the ordinance does not clearly distinguish between a lower intensity beer or wine focused establishment and a traditional bar type um use. So, this amendment attempts to create that distinction through operational limitations and supplemental standards. Um the planning board reviewed this amendment at their April 21st meeting and unanimously recommended approval. Um during that review, the planning board did request several revisions intended to simplify the language and improve clarity for enforcability. Those revisions including included simplifying the definitions uh which we have up on the screen. Um you can see what was proposed um and then the modifications that the planning board had requested. Those highlighted in um yellow highlighter and striketh through with red. Um so you can see what um what was recommended for the definitions that we have for bar, tavern or drinking establishment, wine bar

and tap room. Um hopefully those interested have have had a chance to look at this. I won't um read them all verbatim. Um they also simplified the entertainment standards. Um that's down in the supplemental standards as well as clarifying outdoor service provisions and establishing a parking standard consistent with restaurants and micro breweries. Uh the proposed ordinance establishes several operational standards intended to ensure that these uses remain lower in intensity and do not evolve into a bar or nightclub type establishment. And those um regulations are going to be included in section 7.31A. And I've pulled that up on the green. Um again, I won't read through each individually, but the highlight is that within these standards, um a wine bar or tap room would be prohibited from selling distilled spirits. Um it would be required to have um seated patron service. It would be required to have a closing time of 11 p.m. Um, indoor entertainment is all that would be permitted. Um, no outdoor entertainment would be allowed and the types of entertainment um allowed inside. I will say that when it went to the planning board, there was a lot of um language in there about characteristics and the planning board just decided let's move away from that and just say it has to meet the noise

ordinance period. So you'll see in the revisions um that's how that's going to look. Scroll down to that actually. Here we go. indoor entertainment is permitted provided it complies um with the noise ordinance getting away from all the other language and keeping it simple. Um also um the planning board had asked that there be clarification to require that all um ordering of beer, wine, etc. all sales, dispensing of beverages should occur within the enclosed indoor portion of the establishment. Um that there should be no um outdoor bar service per se. So you could um go in, purchase your beverage um and then there will there could be a seating area outside for you to enjoy it, but there wouldn't actually be a bar um outside. Um, from a land use standpoint, staff's focus was um, less on the specific type of alcohol being served and more about the operational characteristics that tend to create compatibility concerns such as hours of operation, entertainment, outdoor activity, and just the overall intensity of the use. Um, this ordinance attempts to address those issues directly through operational limitations and supplemental standards. Um, the proposed uses be permitted within the same commercial zoning designations where we allow micro breweries currently. Um, so that's going to be in the C1, C2, C4, and C5. And you can see what that ordinance um, draft would look like. I

will say micro breweries are a much more intensive use than tap room or wine bar. So you'll see that micro breweries are a special use with supplemental regulations. Uh what we've proposed is for tap room and wine bar to be a permitted use with supplemental regulations. Um the parking spaces like we had said before um those are going to mirror the standards that we have for restaurants and micro breweries with one parking space per 55 square feet of customer service area. So that would be consistent. Um overall staff believes that the amendment establishes a clear and enforcable framework for these lower intensity um uses while maintaining the town's prohibition on standalone bar uses. The planning board unanimously recommended approval. Likewise, staff is recommending approval. Um and you have two ordinances in your packet. One was the markup and one was the clean version of what the planning board had reviewed. Um, but it's uh ordinance A that the ordinance with the markups um that the planning board and planning staff are recommending adoption of today. And um I'm happy to answer any questions you have. I I think this took several hours at the planning board level because we went line by line. Um wouldn't do that to you all this morning, but if you have questions, I'm happy to answer.

All right. Are there any questions for Miss Wyatt?

I do have a question. I appreciate all the work the planning board put on this. I watched that meeting several times. Um at it just came to me when we've been talking about um the outdoor area, what would limit if there was no parking requirements like we've been talking about with the bill that I think we're going to talk about later. Um and they were allowed to do an outdoor area but they're not allowed to serve. Would they be allowed to, if they're self-p policing their parking, would they be allowed to just knock out five spaces and make a huge deck if there wasn't a parking requirement? I know we have parking requirements right now, but if we get into a situation where we aren't going because this wasn't a situation that we were concerned about two weeks ago,

right? So, um, if I'm understanding your I'm mashing it up. I know. Um, what other triggers are there to keep someone from making their parking lot an outdoor deck? Well, for these you for these two uses, tap room and wine bar, um, this 7.31A.6.4 for total customer service area and patron area shall not exceed 500 square feet or 25% of the indoor customer service area whichever is less. Okay.

So townwide other uses that could become problematic. But for these two uses, we at least have this regulation in here to say that um any outdoor customer service areas for seated patron service and gathering would be limited to 500 square ft. Okay. Or 25%. So that deck would count towards that. So it does keep it. Okay. Thank you. Other questions, mayor?

No, I was just going to clarify. So that that questions with respect to potential legislation about uh the elimination of parking standards. Um there's currently legisl legislation in North Carolina proposed uh that would prevent towns from having a parking standard for virtually anything. And so, um, we're going to argue against that obviously, but the that the question was about, well, so what are the restrictions if it's not a parking restriction u that puts a limit on that area? So, just clarify that. All right. Are there are there any other questions for Kelly?

Um, Kelly, I watched the planning board meeting a lot, but it was long. So, um, I do have one more question. Um, what was their thinking about no outdoor service? Is that just so that it doesn't just spill over? Can you explain what the planning board was thinking about that?

Sure. I think it was just to have um understanding that some of the concern is that um the more outdoor activities, whether it's outdoor service, things of that nature, the more likely you are to have some of the noise complaints, noise concerns, spillover of activities happening out there. So, um That was really the conversation both for customer service area as well as entertainment is to just keep customer service area limited and to keep entertainment prohibited um outside but it was

it was try to capture those um characteristics that perhaps might become an issue. Um, and I think one thing that I didn't mention in here, and it might have been in your staff report, is we've all tried to be very cautious with this because of legislation, um, Senate Bill 382, the down zoning, um, essentially whatever we put out there now considered, you know, upzoning, allowing a new use, if we, um, wanted If we realized after a year we wanted to do something different or rain it back in that wasn't appropriate, we would be unable to do that.

Yes. So the thought was um maybe be a little bit more restrictive at first. If we can lighten it down the road, great. Um but knowing that we may not be able to reel it back in. Okay. So taking some baby steps towards Okay. Yes. All right. Any other questions? All right. Anything else, Kelly? No, sir. All right. Thank you, ma'am. Uh, does anybody else wish to comment on this proposed UDO amendment?

Does the board wish to receive any other information about this or have any questions for anyone on staff before you begin your deliberations? No. All right. At this time, we will conclude the public hearing and the board may begin its deliberations on this proposed text amendment. I would also point out that if if there's a motion to adopt, you would also need to adopt the consistency statement uh for the you need to adopt the consistency the statement of consistency.

Um right. Thank you, John. Um, so rather than a motion, let's start with a a little discussion u perhaps this morning. Um, Kelly, you know, is certainly here for questions if they arise during the discussion. I'll start at my right with um Megan. Thank you. Any questions?

Thank you, Mayor. Um, I don't think I have any questions right now. To me, this um ordinance seems almost borderline housekeeping because of the fact that we are already allowing micro breweries. And that might be something I thought about mentioning to Kelly. You know, we we refer to this as being a less a lower intensity use than a micro brewery. And it might be helpful to get a little clarification on the difference there. But since we're allowing those and I realize it's by, you know, special It's not by right, but um they by micro breweries serve, you know, beer and wine and we already allow those. So to me, this seems sort of like a natural step in that direction.

Um again, without going too far and perhaps not being able to back up. I I appreciate the marked up versions. It was really helpful and I know that staff did, you know, did this quickly because we just brought it up a couple of weeks ago and planning board did spend a lot of time on that. Um, I paid a lot of attention to that as well, watched the meeting a couple times and I appreciate the markup version so that we can see the differences and and where you went with the with the different definitions. But to me, this is a a sensible um and conservative step for the town at this time, especially since we allow micro breweries already.

Since you brought it up, Kelly can ask you to come up and if it please the board, I will ask Kelly to sort of define u micro breweries and how they are different from tap rooms in particular.

Sure. Um, this is the moment where I don't like Huddleh Hub because anything I do on my uh computer gets displayed for everyone else. I don't want to track everybody through the UDO, but um so a micro brewery there's uh by definition it has to have certain components. Um it has to have an educational component. Obviously, you're brewing on site. Um there's uh requirements for certain types of like seating areas like outdoor areas are encouraged things of that nature. Um it's just a more intense production. It's a more intense use. Um, and looking at and a good example is micro breweries are considered a high intensity use because you're likely going to have outdoor area, you're going to have display, you're going to have outdoor seating, you're going to have things of that nature. So because of that, we discussed, okay, we're going to need that transitional protective yard buffer, that larger buffer, because you are going to have outdoor elements that might create issues or concerns. Um, and so with this limiting uh the outdoor entertainment and providing limited customer service area, um, it it makes that less intense.

Thank you. And also there is no there is no um with these ordinances we speak to the sale of beer and wine um you know micro brewery it's also it's going to be beer but there is no restriction on what it can or can't sell. Okay. Thank you. And Kelly, while you're up there, can we um I mean, there's some retail areas in town now, too, that are already kind of allowed to offer tastings of alcohol or I mean, I think the olive oil store is serving some alcohol in the back, like you can you can go have something to drink in a retail operation. Can you explain how that is working?

Sure. Absolutely. Um there are a handful of places I think down at the outlets as you mentioned the Olive Shop. Um and then Marsh Fox Outfitters. Those are retail establishments. Their principal use is retail. Um they're not just selling beer, wine, alcoholic beverages. Um they have a whole host of retail items that they're selling. One aspect is the sale of alcoholic beverages and you can um sample or taste those um but you know in each the area for that is just a very minor part of their floor plan. Um it is by no means their principal use or their principal sale.

Okay. Thank you Commissioner Sanders. I don't really have anything to add to what Commissioner Von said because I really agree with her and you know I appreciate the work that you guys have done and put these safeguards in place because of the downzoning bill. I mean I think this has been looked at pretty extensively and have anything to add. Thank you Commissioner Lambert.

Um I echo what Commissioner Vaughn has said really I agree this is somewhat of housekeeping and it all goes back to micro breweries for me. When I asked our town manager why we allowed micro breweries when I first realized we didn't allow tap rooms or whatnot, he explained the reason for that and it's to help promote craftsmanship in our town and stuff. But there really aren't to our knowledge if we allow it there can't be a bunch of negative side effects. There aren't a bunch of dangers that come with it or we wouldn't allow it to allow craftsmanships. We simply wouldn't allow it. Um, so seeing that we do allow it, I can't understand why we don't allow someone to serve beer and wine the same way we allow a micro brewery to do. So I echo the same things Commissioner Von has said. Um, I feel like it's kind of housekeeping and cleaning up what should be allowed because we already do allow it.

Thank you, Commissioner Harris. Yes, I agree with everything that you guys have said. Um, I think that the planning board talked about allowing the use of all the just sealed spirits maybe was am I wrong on that? They they thought that having full bars was not a problem for some of them in this discussion. Did we did that come up?

Yeah. So I I believe that um some of the planning board members felt like with proper regulation talking about no late night hours um you know like not that nightclub atmosphere. um you know providing enough supplemental standards to uh mitigate the characteristics that we do not want that distilled spirits would be acceptable. But I think they also recognized um in review of this ordinance that uh beer and wine was that baby step

um towards that without um allowing distilled spirits at this time. But I think we had one planning board were asked um you know if this goes well if if if this is adopted and we do see this is there a chance for somebody to come back in the future and request an amendment and there my answer was yes there absolutely is yes okay yes okay so I um I agree with that like let's let's start with this and um see where it goes I know if there is the desire from the town and we can hear from many more people in the that allowing full bars within the neighborhood bar kind of characteristic in Nags Head is desirable for our town, then yes, we we go there eventually, but for now, I'm comfortable with doing beer and wine bars. Um, I like the parameters we have around them. So, they're more they just feel like the character of Nags Head. They feel more like a neighborhood gathering place, like a third space rather than a nightclub. And so I think um this is a good ordinance. Thank you for your work on it.

Thank you. Thank you, Kell. All right. Um perhaps now would be the time to uh ask if there's a motion. I'll make a motion to approve it. Okay. Thank you. I have a motion and a second. Is there any further discussion? Hearing none. All in favor signify by saying I. I.

I. opposed. Thank you. All right, that brings us next to uh public hearing number three. John, thank you, Mr. Mayor. At this time, we'll begin the public hearing to consider UDO text amendments uh submitted by Albam Marl and Associates Limited on behalf of Blue Moon 5-2 LLC, the Blue Moon Restaurant to create a new accessory used to restaurants waiting lounge with associated supplemental regulations. And again, we'll begin the uh with the presentation of the staff's analysis presented by planning director Kelly Wyatt. Thank you. Same as before, I'll put up the ordinance um and try to track with it as we talk about it. Um this item is a proposed text amendment as you noted submitted by um Jay Overton with Alamar and Associates on behalf of Blue Moon 52 LLC which we all know as Blue Moon Restaurant to create a new accessory use category within the UDO titled um restaurant waiting facility. So one of the changes that came out of this at the planning board level was um to change the word lounge to facility given that uh lounge has uh various interpretations by various people. So um the first thing you'll note is that was one of the recommended changes um is to now call this a facility um and to look at the associated supplemental regulations. Um while the request was prompted by operational circumstances associated with Blue Moon Beach Grill, um the request before the board this morning is legislative as you've mentioned and so it is not sight specific. If adopted, the ordinance would apply to qualifying

properties within the applicable zoning districts subject to the special use permit process, the unified development plan, which we'll talk about, um and board of commissioners approval. Uh the purpose of this amendment is to establish a mechanism within the UDO uh for a detached accessory waiting facility associated with a principal restaurant sitdown use while maintaining the town's long-standing prohibition on standalone bars and drinking establishments. Um and pulled up on the screen is uh the definitions. Uh first off is we have the proposed definition for restaurant waiting lounge. Um following the uh word of or the planning board's discussion in April, um staff revisited the proposed ordinance um and we again went through line by line um and made various changes which are reflected in the markedup version ordinance A um within your packet. Uh this review focused primarily on clarifying the accessory nature of the use, limiting operational intensity, improving consistency with the town's existing ordinance framework, and addressing concerns raised by the board uh regarding bar type uses and independent operation. Uh the planning board spent a consider a considerable amount of time reviewing the definitions, the operational standards, hours of operation, signage, entertainment provisions, and the overall structure of the ordinance to ensure the language was clear um and

enforceable. One of the revisions, as I noted previously, was replacing the term lounge with facility. The planning board felt the term facility um more clearly conveyed enclosed accessory structure and reduced some of the broader interpretations with the associated um with the word lounge. Other revisions including um included aligning definitions um with the related wine bar and tap room ordinance so that we had consistency um across the board within the UDO. Um clarifying the hours of operation simplifying entertainment provisions, limiting signage to wall signage only, and removing provisions that the planning board felt were maybe redundant um based on the accessory nature of the ordinance itself. Um so looking at these definitions, bar, tavern, drinking establishment, um we just made this consistent with what we originally had um for um wine bar and tap room. So got rid of a lot of verbiage there. Um, as far as where these would be allowed, um, they would be allowed via the special use permit, the supplemental regulations and the CR, C1, C2, C4, C5. And these are all areas where um, restaurant sit down is already allowed. And then here's where really the majority of all the discussion occurred which was for the supplemental regulations. Um these include requiring approval um if

you were to consider this through a special use permit and a unified development plan. um requiring common ownership and operational control, limiting um operation to the same hours of the restaurant. So um this restaurant waiting facility could not be open if the principal restaurant is not open as well. Um requiring closure by 11 p.m. or when the or when the restaurant closes, whichever comes first. This acknowledges that this restaurant waiting lounge, if if everybody's closing at 11, the restaurant waiting lounge might need to close at 10. Um, it cannot stay open beyond 11, but it can certainly close earlier if need be. Um, limiting the facility to patrons of the associated restaurant only. Uh, and prohibiting freestanding signage. There was a lot of discussion around this. Um, the planning board that asked, "Are there any accessory uses currently within the town that gets to have its own freestanding sign?" And there isn't. Um, by nature, it's a principle and an accessory. So, keeping with that, um, should the board be inclined to adopt this, their recommendation was that, um, there not be any freestanding signage associated with it, um, but that it could accommodate wall signage under the current, um, sign regulations. Um and again just a variety of um conditions in here to ensure that the use remains accessory and subordinate to the principal restaurant use. Um the ordinance also limits the use to enclosed permanent structures and does

not allow the use to function through um temporary structures, uh tents, things of that nature, unenceds gathering areas or um outdoor entertainment oriented type spaces. The planning board also discussed entertainment provisions in detail. The revised ordinance removes some of the more subjective language that was previously proposed and instead simply requires compliance with the noise ordinance. The same as we talked about for um tap room and wine bar. I'll try to get into the characteristics of something and just say that entertainment is allowed so long as it meets the noise ordinance. Um similarly, uh the same thing with signage, keep it consistent with what we already have within the town. When it comes to accessory structures, the ordinance also clarifies that the square footage of any restaurant waiting facility be included within the restaurant's total customer service area for parking calculations. And again, that's going to be the same thing um that we've talked about, one parking space per 55 square feet of customer service area. Any increase in waiting area would proportionately increase the required parking and that would all be taken into consideration uh on a siteby-sight basis as this is a special use. So if we were to adopt this use um the actual application of it on ground um would come before you as a unified development plan in the special use permit process. Um and at that time you could place conditions if you felt necessary. Um an additional point uh staff has tried to emphasize throughout the process um is that because this is a special use permit um and there is a

requirement that it be part of a unified development plan um this is always going to come back before the board any scenario. I realize we're here because this was submitted by Blue Moon, but when you think about this more broadly, um, if this were to be adopted, they are going to come back before you with their special use request. Any other applicant would be before you as well, and you would have an opportunity to impose, um, conditions that were fitting at that time should you have any concerns. Um, go through, make sure highlighted the areas where the planning board had the most discussion. Um feel like that hits on the primary changes that were made as a result of the planning board discussion. Um following the uh revisions and clarifications that we made through the planning board process, staff continues to believe that the ordinance um does establish a clear and structured framework intended to keep this use accessory in nature and to prevent it from becoming a standalone um drinking establishment or bar. Uh the planning board continued to support the ordinance as revised. They made their formal recommendation at their previous meeting. Um they did not make another formal recommendation. Uh but as we went line by line, we talked about the areas of concern where we needed consensus and um they were generally supportive of moving this um back to the board of commissioners for their consideration. Um with that in mind, um staff does

recommend approval of the text amendment as it's presented. And again, it would be the ordinance A with the um with the markup version that represents the planning board's conversation. And I'm happy to answer any questions that you may have. We do have Jay Overton with Alamor Associates. Um Scott and Melissa Shields Blue Moon are available as well.

All right. Does the board have any questions for Ms. Wyatt? I do I have one question about um 7.31.3.2 2 which prohibits the location of the waiting facility in multi-tenant commercial developments or shopping centers and I the planning board did discuss this but I didn't well I say they discussed it it was mentioned can you tell us a little bit about where that comes from and why

um yes absolutely so um right now if there's a principal restaurant sit down in a shopping center um and there's a vacant unit beside them. We've actually seen this with Blue Moon I think when they were in Surfside Plaza, they are um they are able to expand um laterally and still meet those restaurant the restaurant criteria. the 20% kitchen, 75% full service seating, 15% accessory um or I'm sorry, entertainment. So given the way this is structured um from a staff perspective, we've gotten a lot of input on this. I think there's many that feel like um the amendment is is narrow and should be more broadly as everybody should be able to participate with it. Um and then some feel like perhaps it's the camel's nose under the tent and we would not want a proliferation. So I following the board meeting I went through and I looked at all the restaurants within the town of Maxad. There's a lot. there's 35. Um the majority of those are in shopping centers. So having a situation where we were allowing um a restaurant principal sit down within a shopping center to encourage patrons to leave the shopping center site. to not just go within an existing unit, but to

leave the shopping center site to go to a detached building. Um, opening that up to 35 plus restaurants. Um, it didn't seem like that was a leap that we needed to make right now in light of SB 382. If you were inclined to adopt this, um, we could look at it more narrowly and not allow restaurants within multi-tenant shopping centers to take advantage of this. They already can expand. We've seen that happen multiple times, multiple restaurants. Um, but uh I'll be very straightforward. I've I've heard this is too narrow and I've heard this is too broad. I was trying to thread the needle.

I understand. So, thank you. Could you not have a waiting lounge in a contiguous unit of the shopping center? You you could. Um I don't if this is written in a way that precludes that then we can address that if the board is interested in it. Um again that would be part of a special use permit process and um they would have to I guess provide the floor plan showing how they were no longer meeting the requirement of restaurant sit down and incorporating this into their unified development plan.

But this really pertains to accessory dwelling with a shopping center. Would that be considered an accessory dwelling? Yeah, or not. I mean, this is obviously considered an accessory dwelling, and I feel like that's what this is written towards. I mean, I don't even know if that would apply to a I mean, in theory, it would be

the example for me is if Dune Street wanted to take advantage of this. They are in Surfside Plaza. They have a lot just to the south of them. I think there used to be three old structures on there that have recently been demoed. um having their customers leave Doom Street and and walk over to a detached restaurant waiting facility. Um doesn't seem practical. So that was our thought process with that.

Thank you. Just to be sure, I understand, but the way it's written, it would be precluded to happen inside a shopping center. I I agree with you on the other possibility um that you wouldn't want, you know, a separate structure and people leaving a shopping center. But am I misunderstanding that it reads that you you couldn't do it in a just says you can't do it in a multi-tenant commercial development? Yeah, I think and I know what you're saying about special use, but that just Yeah. Okay.

We might need if this board is inclined to move forward with it, I'm happy to work on some revised language. Again, when you have a restaurant inside a shopping center leasing the space beside them, um they can do one of two things. They can just as Blue Moon did when they were in Surfside Plaza and incorporate that into their principal restaurant use still maintaining all the criteria. um their kitchen did not increase. I don't believe it was to accommodate um waiting. But to that, could they also designate this as a restaurant waiting facility if they wanted to? Um we can certainly revisit that. We can propose revised language. Would you want it to be contiguous or would you want it to be four units down?

Yeah, those would be the things. I'm not saying, you know, what I want. I'm just trying to make sure I understand that the prohibition, but I think the way it reads, you're right. Well, can I just say one thing? the the definition of restaurant waiting facility says it's an indoor detached and fully enclosed permanent structure accessory. Yeah. So I think that's why it was just keeping

that's what I think that's what was written to say okay well it's it's a separate building and so when Kelly was explaining how this works it really only means it's a sep it wouldn't allow a separate detached building on the side of a multi-tenant shopping center I think the way it's wr written is that that was my attempt but I do see exactly what commissioner von said so so you know it doesn't it doesn't necessarily preclude you from getting the space in next door in in a unit. It it doesn't, but that is that is what you're saying. So you go back to the definition.

Yeah, you go back to the definition. So I think that's was that was the intent. I think Kelly wrote it. So So I can see confusing because you got to go back and forth between the definition and that sentence. So, gotcha. Kelly, go ahead. No, please.

In the um earlier on the in one of the previous public hearings in the presentation and and describing those facilities, um you talked a lot about preventing those from becoming a a standalone bar or nightclub that there was um a separate establishment and addressing compatibility concerns and intensity of use. Um I is it is it is it yours and would it be um fair to characterize it as the planning boards to say that this proposed ordinance is equally robust in those regards? It is certainly staffs and I believe it was planning boards as well.

Okay. Um, from a staff perspective, we do still recommend approval and we do still feel like there are a lot of safeguards incorporated into this to ensure that um, if this were to be allowed that it would function um, as part of a unified development plan collaboratively with the principal sit down restaurant and not become its own independent use. Thank you. No questions. I think I got my answer.

All right. Any other questions for Miss Wy? All right. Uh, anything else, Kelly? No, sir.

Thank you very much. All right. At this time, uh, Mr. Overton or, um, we'll let you go next. Well, I'm happy to say it's still good morning. Uh, I'm Jay Overton with Al Marlin Associates and I think this is something that has certainly been evaluated and evaluated and evaluated and the the progress that's been made appears to be in keeping with some of the housekeeping things that y'all were looking at and maybe some of the questions that were were out there. Um what we're asking with this I think is just a further supplement of what we're trying to do to to be able to to bring continued success in businesses. Um this particular business that brought this about as we've talked about before um was because of parking issues and because of the need to have seating for those customers that were waiting. It is proposed and intended that this ordinance would take care of the expansion of a restaurant facility that would take care where there's a need. And and that's the way that this is written up where by way of the special use permit, two properties would become combined. They would have to have the same ownership. They would have to be under the same control. So that in and of itself puts everything on one entity as far as the operational concerns of things that are occurring within the restaurant and the uh ancillary building would all follow the same flow and so forth. Um, so as we're we're looking at this and and the planning board, their continued comments

on it, um, the comments that came from the board last month, it appears that we're we're not looking to create something new. We're looking to solve a problem. And that is the intent. what you have with your wine bar and the U tap room text that has been defined in the end of that uh discussion as it's solved an issue and that's what we're looking at here is to solve an issue not to create an issue. Um, when I look at what we have with regard to the location of these facilities, I know that the town is still concerned about bars and this has brought about a well-defined explanation of what a bar is. Um we now have two new definitions for the other uses and we have one proposed for this ancillary um waiting facility. When you look at the areas across the the uh town that what we're talking about would be considered. It's it's very few. It's going to be those facilities that are not within the shopping centers because what was just talked about before you would just go and get another unit. you would have to have a a building that needed to have the additional building beside it expanding and so forth. Um, so those areas are going to be very minuscule as far as the request and then that request is going to have to come back before y'all. Unlike what we just approved with the wine bar and the tap room, there's opportunity throughout the town as a permitted use to have those

and they have their requirements as well. But y'all have a second opportunity on anything that's coming forward with what we're looking at. Um the other things that we're we're looking at, uh this is associated with the restaurant. So we've got a whole another standard for restaurant operations that would be implied with this. So I think the there there was one issue that seemed to drive our discussion the other day and that was that of control of people. And when we're looking at controlling people, no matter what we do, there's always going to be some some issue with that. uh what we just approved with the wine bar and the and the tap room, there's going to be control issues there. Um but that goes back to if you've got operators that are looking at their facilities and looking to run them in the manner in which they need to be um run, then they're going to be an asset to the town. So, I say all I'm trying to uh not get into the minutia of this. It seems like the discussion thus far this morning has been very general and I'm just trying to keep my comments general at this point. So hopefully if there's any specific comments that I could address, I would welcome the opportunity to do that.

All right. Any questions for Mr. Overton? All right. Anything else, sir? No, that's it. Does anybody else wish to speak on uh or about this proposed text amendment? Does the board wish to receive any other information about this before you begin your deliberations or have any questions for staff or the applicants? If not, at this time, we will conclude the public hearing and the board may begin its deliberations. Okay.

All right. Thank you, John. I think I'm due to start on this side. Uh let's start with with comments uh perhaps and discussion as opposed to a motion. Um although a motion is always in order. Okay. Commissioner Harrison.

Um I just want to say that I have looked at this and looked at this from every angle I can possibly think of to look at this. Um, I want to support the applicant who's applying for this and I want to support the small businesses in Nags Head, but the more I look at this, there's just some things in this ordinance that I'm just not comfortable with. I said this last time as well, but um, there's just a few things in here that don't sit with me well. Um, one being that, um, I've heard this referred to me as the bar that's not a bar with pe with people in town. And, um, I just I just want to be more clear with what we're doing within the town. If I think that if we if the desire in our town is to have full bars, then let's have full bars. Let's just come out with it. Let's do it. I think we're making steps in that direction. I would like to hear from more towns people um that this is what we want. Um, that is one of my concerns. Um, just another concern of mine with this is just looking at it townwide. That is my job to look at the whole town with this. I can see how this could work in many instances. And in this instance for Blue Moon in particular, I can definitely see this working, but I can also look maybe farther down the road and see how this could be taken advantage of or maybe this couldn't work in some situations. And that's just my job to look at the whole town. Um, and I just have to be comfortable with what I'm voting for for the entire town. And um, townwide, I feel like enforcement would could be an issue. Not that our staff can't handle that, but that um, it's just not what our staff's jobs are to enforce such minutia about how things how businesses are waiting lounges are being operated. Um, so I think I'm kind of reiterating my concerns from last time, but I While I have looked at this in a lot of different ways and tried to make it work in my mind, I think I'm still in the

same place as I was before. I just I have hesitations about this ordinance.

Um I feel that this ordinance doesn't just create a new use, it creates a path around policy that we've already put in place. If we believe that those policies matter, then they should apply consistency. Then we need to apply consistency. Otherwise, we risk undermining both. I want to support small businesses. Um, if there was a way that every decision we made would make every small business happy, I I would say sign us all up. I know we'd love to do it. Um, I know that this business is a fantastic business. I know that this business will follow the rules put in front of them. Um, I know that this applicant is a huge asset to our town, but when we're looking at a townwide text amendment, we can't look at the fantastic applicant in front of us. We have to look at the town as a whole. If people can walk in, order drinks, and socialize, it's a bar to me. No matter what we call it, whether we add facility at the end, we currently limit that to 15%. Yet, this would allow a separate structure that effectively would have a 100% bar. That's not consistent, and it's not fair to businesses that follow the rules. If we're interested in moving in the direction of allowing solid standalone bar type uses, I want to have that discussion. And I'm not saying I'm willing to do it or not willing to do it, but I want to have that discussion with much more public input. I think that's the right way to do it, and I don't think a workaround policy is the way to do it.

Mr. S.

Um, I guess I feel a little differently. I mean, I kind of agree with staff and the planning board. I feel like there's been enough safeguards put into this that it could work. Um, you know, full disclosure again, I do own a business with a lot next to it that I bought for parking and these applicants have done the same thing. The only difference is they happen to have a building on theirs and right now their building sits empty, which I don't think is a great thing either. problem. And it's a good problem to have. I got the same problem. Um, you're really busy. You're really popular. You get a lot of people trying to get into a small space. And it creates problems for the business. There's nowhere to move. You can't get your food to the tables. You can't get somebody in there to get a drink. People hold the door open. The flies, you know, same thing I said last time. the flies come in, the air conditioning goes out, and it just creates a logistical nightmare. Um, and nobody planned on this. So, they're looking for a solution to the nightmare of their overcrowding in the restaurant and not enough room to park. Their parking is already solved. Um, all these places have gone to looking at outdoors to have people wait to try to shift them out of the restaurant to move them to a different space to use. So, and it works to an extent except when it's really hot, when it's raining, when there's biting flies outside, you know, all of the above. So, I see this as, you know, a solution to a problem. And I agree with staff and with the planning board that there are enough safeguards in place that this will work. It is a special use permit. We can always look at it again if we feel like it's not working. There are concerns that people just go here and have

drinks. Well, you can do that in any restaurant on the beach right now. You can come into the place I own and just have a drink and you don't have to eat. So, I really don't have I don't think that that is what this is going to turn into. I think this is going to be pretty much a waiting area that closes pretty much after the restaurant closes. So, that's where I stand. Thank you, Mr. B. So um I haven't changed much since our last meeting um except for have I have spent a great deal of time thinking about this watching the planning board meetings and listening today of course and I I guess it comes down to in order to approve this text amendment one has to accept the premise that the restaurant and accessory waiting lounge or waiting facility um and we've changed the but it's still the same facility. Um, is a unified development. So, my opposition to this amendment begins there because no matter how hard we try to I think I heard the term thread the needle throughout from several places. Um, this is by definition two separate buildings and in practice could certainly be two totally separate uses. I I I want to be clear that my opposition is not um to the fact that in this particular request there's a road separating the buildings. It's it's irrelevant. I would pose such development on a single parcel as well. But this amendment would apply all over our town and for me um would present the same challenges across the street otherwise. especially regarding enforcement and and I agree with Commissioner Harrison that in our staff although they could do it and I and I'm sure that the restaurant has all good

intentions um but there is no guaranteed way to be sure that everyone who enters the waiting facility will also dine in the restaurant regardless of all good intentions of the applicant and I firmly believe that your intentions are really good. Um, we would in fact be allowing a bar. I mean, you can walk in there and buy a drink. So, um, but only in a separate building near a restaurant, not in multi-tenant commercial buildings, which we've already talked about, which house many of our of our small, you know, restaurants of our restaurants in town and are a consideration for me. Um, so after many weeks of listening and studying, and I really appreciate all the hard work done by the applicant and staff and the planning board, I don't feel comfortable making this very significant change to our ordinance in this way. I believe that any change to our UDO and therefore to our comprehensive plan should be for the, you know, to satisfy the development needs of the entire community and not be quite so narrow in focus. And I believe that a change of this magnitude should be more clearly defined as a bar and that we should directly solicit public input allowing the use of standalone bars um before proceeding.

Thank you. Um, since where this is going, it it's um, you know, in my mind, we we just created two categories where you can go and drink that don't help a restaurant solve its waiting problem. And we're not going to allow almost an identical facility that would help a restaurant solve its waiting problem. Um, with, you know, sort of the same controls in place. Um, I want to say also thank you to staff and planning board for you and the applicant for trying to u create something here that was um that was helpful and spending a a fair amount a fair amount of time and effort on it. So um thank you. Um at this point I will entertain a motion.

Well can we just say that there's a difference between what we allowed earlier and what we're allowing now. I mean I think we We allowed earlier standalone beer and wine bars. This is would be a full bar. And I think there's a distinction that we take it a little bit slower in our town to go forward with letting full bars. Maybe that's the consensus that we reach. But um I know they're two separate ordinances, but I you since you compared the two, I just would like to say that there is a distinction between what we allowed earlier and what we potentially would be allowing with this. Understood. Okay. Thank you.

I also there's one other thing that I've heard a couple times. Um, Commissioner Sanders, you mentioned it and I at first on the face I agree with it where someone can go into another restaurant and get a drink and leave. They absolutely can, but your restaurant still adheres to those 15% rules. So, you're still limited to those people coming in getting a drink with those 15%. This would allow a bar that they don't have to adhere to that. So, I don't know if that's necessarily an applesto apples comparison, but also when we're talking about this restaurant trying to solve their problem and this restaurant trying to do this, I can't help but say we're sight specific now. And this is townwide and not every restaurant that takes advantage of this will be doing it to alleviate a problem. They could just be simply taking advantage of a workaround to have a bar. And that's my big concern with this.

Yeah, I get that. But also, you know, they have a parking lot and an empty building and a nice airond conditioned place where people could actually wait. You know, like older people that might not want to wait outside when it's so hot or when it's raining or when the flies are biting or all that kind of stuff. I mean, I totally understand where you're coming from, but I also totally understand where the applicant is coming from, too. And I kind of feel like staff has put enough safeguards in place that this could work and could solve a problem for a very popular place. Again, not to be sight specific, restaurants have waiting problems. Yes. In town,

we're not we're not finding a way to help them resolve that problem. All right. A motion would be in order.

I'll make a motion to deny this tech this text amendment request. Okay. Is there a second? I'll second. I have a motion and a second. Is there any further discussion? Hearing none. All in favor of the motion to deny say I. I. I. Opposed? Nay. Nay. Thank you. All right. Let's um let's take a 10-minute recess and come

All right, the board has returned from its recess and we will continue with reports and recommendations from the planning board and the planning director. Kelly, you've been busy today.

Fortunately, this one's quick. Um, so the planning board, um, we discussed most everything that they did at their last meeting. um just now with the uh wine bar and tap room. But so their upcoming meeting um they do have one item on there. It's going to be review of a proposed expansion to Tar Hill Motel. Um and we're also going to look at the uh strategic plan that this board um approved um and talk about the planning related items on there. Uh from the septic health and uh the decentralized wastewater management plan side um the septic health advisory committee did meet um and discussed outreach and some different efforts there. One thing that staff is very encouraged by um is that our revised mailer, which is up on the screen, um has gone out. Um and I think most people have received theirs. There is still kind of trickling out, but um last week when I wrote this report, we had received 30 new requests for um septic inspections just based upon receiving that mailer. Connor is down in Columbia, South Carolina doing the think tank uh that he spoke uh about. So um I'm sure when he gets back we'll have even more for him to to go through. So that's really exciting. Um gave an update on our numbers. Participation is really strong uh with the septic health program. There's 138 inspections completed so far, 117 pumpouts and eight loans that we've processed and there are two loans in the works. So that would be um before we get to the end of the fiscal year, 10 loans, which is going to

be um a lot compared to what we've been doing. So um the estrin shoreline management plan uh kind of spelled out everything that's going on there. um in your packet. Continuing to move forward on the Harvey Soundside um event site, uh Villa Dunes Drive. We have George Wood with environmental professionals working with them. Soundside, as you know, we're incorporating some um storm water measures there. Um and then also um as far as the catfish farm and causeway effort, um That's where we're primarily focusing on now. Um, but there's been a lot of movement with that sand relocation do management cost share. The sand relocation program has ended. Um, people were unable to have equipment out on the beach as of May one. Um, so but with that we issued 270 sand relocation authorizations and probably about 10 camel repair and maintenance for the same work. outside of the nourished area. So, Bonnet Street and North. And when I wrote this, we were at um distributing 363,000 of the 400,000 that the board had allocated. My guess is um we are probably at or over that at this point. So, we had 17 applications lingering. Um Lily Nebering is processing those. as those were coming in, she was letting them know it was first come, first serve. Uh once we hit that 400, um these people will no longer be um uh able to get that reimbursement. But that's exciting because we haven't really hit this 400 in the past couple years and we thought with nourishment and with the

three-year cycle that this would be a big year and um it absolutely was. Um and Dowy Park, Farmers Market, Art and Culture, um the Everything there is just that summer season. Um everything's scheduled out for the summer. It's ready to go. Um and one thing that I hadn't mentioned previously, but I did want to mention um was that we did receive a $2,000 grant um through the safe monarch habitat habitat program to um upgrade our pollinator garden there on the northeast side. So that will take place in the fall. That's all I have as far as the report. Happy to answer any questions that you have.

No questions. I just want to say I I had another reason to talk to Andy when I got when we got the flyer in the mail and I had to say really well done. Um it was it was great. You get so much stuff that comes in the mail and to have something that communicates clearly, stands out, carries important messages on both sides. Super clear. That was great. That was really well done. Thank you. I appreciate it.

Okay. All right. Thank you. Uh that brings us to uh old business items from previous meetings and uh Amy is going to help us finalize the beach nourishment project.

Yes. Good morning, mayor, commissioners. I almost feel like I'm asking for forgiveness rather than permission with this because the LGC approved it yesterday. So that is good news and they know that but of course the expectation is some of these things are forthcoming. So um just with the timing of the meeting. So um first uh we we were able to receive the interlocal agreement with Der County and that just solidifies their funding um towards this project and it's just going to be a onetime lumpsum cash payment that I can draw down from. There's not going to be any debt supplements like we had had in the past. So, um, that's the first item. The second is the resolution, and this is way above my head. It was prepared by our bond attorneys. Um, but it does outline um the financing terms and the amount of interest in the bank. And so, it just solidifies the the the banking agreement, if you will, um, with Webster Bank, who bought the the bonds. Um, we did kind of settle in on financing $13 million. Um, And then the rest will be of course Dar County's 13 plus million and then our uh over $12 million cash contribution which is amazing that we were able to to save up that money and and um do a $38 million project with no tax increase. So um and with that being said, uh part of of what I need you to approve also is to approve the capital project ordinance as well as the budget amendment just because I need move the money from the capital reserve fund to the the project fund. And um so those two items, that is what they're for, is just to to move that $12 million. So we can have a budget ordinance that we um have cash to fund and we can do the purchase order. So um

this is kind of anticlimactic, I guess, but um this is this is this is it. Very good. Thank you. Any questions for Amy? All right, then let's start with the motions. The first motion in order would be consideration or uh consideration of the interlocal agreement with their county and to approve the interlocal agreement. I make that motion. Second. I have a motion and a second. Any further discussion? Hearing none, all in favor signify by saying I. I opposed. Thank you. Uh next would be consideration of the special obligation bond issuance resolution. A vote to approve the resolution and a motion would be in order.

So move. I have a motion. Is there a second? Second. I have a motion and a second. Any further discussion? Hearing none. All in favor signify by saying I. I. Opposed. Thank you. Uh next would be uh to a motion to approve the capital project ordinance. Amendment number 19 would be in order. So move. Have a motion. Is there a second? Second. Have a motion and a second. Uh any discussion hearing? None. All in favor signify by saying I. I. Opposed. Thank you. And finally, consideration of budget amendment number 11.4 and a motion to approve would be in order. I have a motion or a second. Second.

I have a motion and a second. Any further discussion? Hearing none. All in favor signify by saying I. I. Opposed. Great. Thank you. Thank you, Amy. Fabulous. Yeah, these things happen just in time. Equipment's rolling on the beach and dotting the eyes and crossing the tees. All right. Very good. Uh that brings us to uh new business and um committee reports. And I'll start on my right actually. Uh Commissioner Vaughn,

um the Dare County U Visitor Bureau Tourism Board. We met on April 16th. Um, not a lot of huge news. We did welcome a new um, representative which is Dylan Hikkins, the new KDH commissioner. So, we're glad to have him and I'm glad to have more municipal representation on the board. Um, we reviewed the draft budget for the 26 27 fiscal year. Um, that will be there's a public hearing on that budget on May 21st at our next meeting if anyone's interested. Um, and then I guess the probably one of the big things that some of us were able to attend was the ribbon cutting

and event at the boardwalk and um, Southside event site. I think it was well attended and it's a beautiful facility and I personally am proud that it's in Nag's head and um, that's really it. Very good. Thank you, Mr. I have nothing to add to what Miss Wyatt reported on the shoreline committee. Thank you. Um, I don't have anything to add to Miss Wyatt's update for the septic health, but I just want to echo what Mayor Cahun said. You guys are doing a tremendous job and what's happening right now with the septic health is just so exciting and I can't wait to see where we are a year from now. Thank you.

Government Access Channel doesn't meet again until June, but in the meantime, everyone is putting together videos. I'm kind of learning what they're doing and how the way they're representing their town on the TV. So, it's been really interesting and fun to learn about that. And for me, I guess the big news from the pier is that they finished their renovation project. It's open. Looks good. Good.

Good. Um, that brings us next to a discussion of the DARE Housing Foundation appointment. Um, the DARE Housing Foundation uh has been formed. They are proceeding with their work to foster um affordable housing in Dair County. Um you will recall that um the town manager Andy Garmin uh previously was our uh appointed representative. Um I think that was after Commissioner Sears left the board. Um Andy Andy was uh in that role. Um there was a little bit of discussion among the board about um it being more appropriate uh for one of the elected u members of the board to um to uh fulfill that role. And so um today we need to appoint um a board member to the housing foundation. I understand that there is a interest.

I'd like to make a motion to appoint Commissioner Sanders. Okay. Thank you. Is there a second? Second. Uh there's a motion and a second. Trusty are willing. Yes. Okay. All right. You always need to ask. That's good. Well, thank you very much, Commissioner Um it'll it'll be good to um have the town continue to be engaged in the in the good work of the of the foundation. So a uh was that made in the form of a motion? Yes. Okay. So I have a motion and a second. All in favor signify by saying I. I. I opposed. Right. Thank you, Commissioner Sanders. Appreciate that very much.

That brings us to consideration of a water operations distribution floater position. and Nancy.

Yes. Um, with the retirement of Buddy Beum, we would like to fill his position instead of just being a water operator to a water operation distribution technician. This this is not a reduction in staff. This is just using the people that we have. Um the operator technician will divide its time between the water plant mainly in the summer months say Memorial Day through Labor Day and the rest of the time would be in distribution. Uh the water plant could in the wintertime consolidate to one shift instead of two. We will also utilize the SCADA system that we have that monitor tank levels and cut pumps on and off

to fine-tune it to uh give us more alarms when the um plant's not manned. Right now, the plant is manned 8:00 a.m. to midnight, 7 days a week, 365 days a year. water technicians schedule is 7 a.m. to uh Monday through Friday weekends off but they also rotate on call which would the people they have would be like once a month uh this won't increase the number of employees but it will provide water distribution additional support for preventive maintenance and main repairs.

Thank you.

Thank you. may have questions for for Nancy, I guess. Um, yeah. Yeah. I mean, just fundamental for the benefit of the public who may not catch anything else. Um, there's nothing about our water safety or distribution or availability that's going to be negatively affected by this change. No sir, it's monitored u through the SCADA system and also u will be able to set alarms for anything that trips a pump or something like that. But right now from midnight to 8:00 a.m. nobody's there. And Dare County has a number to people could call Dare County. Dare County has uh the water superintendent It also has the on call distribution phone number and the um water distribution superintendent and my phone number so they have people to call if something happens and someone sees it break.

All right. All right. Very good. Thank you, Nancy. Thank you. And Andy, to clarify, um which parts of this do we need to vote on? Do we need the uh I think you we should vote on the pay plan and then the revised organizational chart. Those are the two things that the board typically approves. Okay. All right. Then a motion to approve the revised public works water organizational chart would be in order. So move. Have a motion. Is there a second? Second. Have a motion and a second. Any further discussion? Hearing none. All in favor say I.

I. Opposed. All right. Thank you. And uh the second would be uh to approve the modification to the pay plan schedule. I'll make that motion. All right. Thank you. I have a motion. Is there a second? Second. I have a motion and a second. Any further discussion? Hearing none. All in favor say I. I. Opposed. All right. Thank you very much.

Uh that brings us to consideration of appointments and reappointments to boards and committees. Um we have a uh a occurring vacancy on the planning board. Um and we do have a candidate list and we have a candidate who I understand to be interested in being reappointed. So um a nomination would be in order. I'll nominate Dave Elder to be reappointed to the planning board. Second. Thank you. I have a motion and a second. Any further discussion hearing? None. All in favor say I. I.

Opposed. Thank you. And as well to the um personnel grievance panel and that is for uh Jean Flanigan's term expiring 6726 and she is interested in being reappointed. Correct. Okay. All right. Yes. I'll make a motion to reappoint Jean Flanigan for another term. Second. Thank you. I have a motion to second. Any further discussion? Hearing none. All in favor say I.

I. Opposed. All right. Thank you. Uh Mr. Town attorney, do you have sir for us today?

I do have one quick uh report for you uh for the board. Just wanted to give you an update on the um litigation uh in the case brought by Cherry uh Inc. against the town um that related to the removal of the uh cottage from the oceanfront uh in 2023. As you may recall, we obtained a dismissal of the lawsuit uh last summer. Uh Cherry has appealed that. The case is now pending in the North Court of Appeals. Um we're in the briefing stage. I actually filed our response brief to to Cher's brief yesterday. Um they have the right to file a reply brief which I expect that they will do. Um and then sometime um later this summer or early fall, we should learn whether the court of appeals is going to order um oral arguments in the case um which we should learn about by September or October. if they schedule oral arguments, they probably would be held within 60 days after that. So, that's basically the timeline we're on right now. Um, if arguments are not held, the case will be determined by the um by a panel of the court of appeals in chambers. Um, and we should be expecting a decision sometime next spring, I would say.

Okay. Thanks, John. Yes, sir. The wheels turn. flow. Stern flow. All right. Very good. All right. Um, that brings us to the town manager and the budget.

Applause. You don't want to miss.

Yeah. All right. So, Katie, thank you for bringing up the budget on the screen. I just wanted to show the board and the public. We do have the budget published on the town's website. So, maybe could you go back to the actual landing page just to show folks where they can find the budget on our website? So, yeah, there's a there's an annual budgets page. You can go and find it. It's there now. Um, and as you can see, it's labeled 2627 manager recommended budget. So, that is the digital version of the hard copy you're getting ready to receive. So anyway, um thank you for the opportunity to present the recommended budget for fiscal year 2026 27. Uh let me start by saying how grateful I am to the board and to our staff for the very thoughtful and diligent work through every step in this process. Uh this process usually takes about six months starting in November and including in June. Uh we first conduct a strategic planning retreat. Uh this year was in February. Uh normally we do that a little bit earlier. Since we had a new board this year, we wanted to make sure we captured the input from the new board. Um we had already started working on this budget at that time. But the retreat did help influence the priorities that are in this bud budget and ultimately those were reflected in the budget and the CIP document which we've already been discussing. So today we're going to give a brief presentation. I'm gonna start. Amy's

going to finish it. She'll bring it home. Um so um as I mentioned, it's published on the website. After today, we'll have a workshop on the recommended budget on May 20th, which is your regular midmon meeting. And then in June, we'll have the public hearing, which you've already authorized today on the consent agenda. That's June 3. Um, we'll have the public hearing. Sometimes the board may adopt the budget at that meeting or may choose to adopt the budget at the June midmon meeting. So, that's just the schedule we're looking at from here on out. So, the 2627 budget reflects the town's ongoing commitment to responsible stewardship of Naged's four strategic planning goals. protecting our natural environment, achieving responsible and adaptive development, promoting a sustainable economy, and maintaining efficient, highquality government services. Hopefully, you'll find this budget reflects the values and the long-term vision you have for the town. Balancing responsible fiscal management with targeted investment in infrastructure, public safety, environmental stewardship, and the town's most important asset, its people. So, a little bit of an overview of the big ticket items we have in the budget this year. Um, first thing I'll mention is the construction of the multi-use path which would link Carola Drive, the entrance to Jockeyy's Ridge State Park with Westside Road. The board knows about this. We've been talking about it for several years. Uh, we we were able to get a $100,000 state grant, trails grant to pay for the design for this project. We also got a $750,000 grant from the Outer Banks Visitors Bureau for this project. It will go on the west

side of 158 and the estimated project is about $1.6 million. We're working on the design right now. Uh we do have meetings scheduled with Jockeyy's Ridge and with NC DOT in the next two weeks. U obviously a major initiative this year will be the beach nourishment project placing slightly less than two and a half million cubic yards of sand on the beach along 10 miles of shoreline at a cost of about $38 million is funded through property taxes municipal service districts dair county contributions in the town's beach nourishment fund will also replace several beach accesses this year we've been trying to do this every year at least two uh this year will be Albatross and Glidden Street. Um, we're applying for grants for Glidden Street, I believe, through KMA. We've also budgeted $50,000 for the design of the Harrove bath house replacement, which we're expecting to replace in 28 2728. Um, that was a $400,000 grant for um Hardrove that we received as well. Um, next year we will also continue with our streets and storm water work, which we've been aggressively pursuing. Um, year Seven of our 20-year plan is in next fiscal year. This focuses on re resurfacing several east west streets including Ida Street, James Street, Tides Drive, Guru, Dun Street, Glidden, Finch Force, and Maul Drive amongst others. We're also looking at resurfacing a portion of Writesville Avenue between Bark and East Bonnet. And uh David is currently working on project area four, which you've heard about a lot, which would be a new drainage system, a collection system around and Dowy Park. Uh the water would be pumped over to the Bonnet Street bath house parking lot which would be reconstructed and there would be a subsurface infiltration system at Bonnet Street. It's very similar to some of the projects we've just completed in South

Nag. And this is another state grant we received for $2.36 million. So we're very fortunate to continue to receive these these grants which have made significant improvements in the town's drainage infrastructure. Um, and we are also proposing to replace our culvert cleaner. This is probably next to the employees, the town's second most valuable asset. Um, we use this extensively every week. Nancy sends me pictures almost every other day of different ditches and culverts that have been cleaned out by Bobby Hooper. So, um, we we are wearing these things out. I think this unit's probably only about 10 years old. Um, so that that's something we're doing. A police department is looking at replacing its drone. They use this for accident reconstruction, search and rescue, and posttorm surveys. We're also looking at replacing three police vehicles as part of our replacement schedule. Uh, fires, looking at replacing uh the Knox key management system we use for business access, which is uh for non-destructive entry. And we're also looking at purchasing a new training prop. This is in the CIP. Uh, water and septic water. We are recommending a 5% water rate increase. Um we're looking at purchasing a $66,000 vacuum trailer to support water main repairs and emergency response while serving the storm water division as a shared asset. Water man extensions planned this year include along South Croen Highway between Finch and Forb Street and also between Dune Street and East Soundside Road for septic health. Kelly just described our subject health program and some of the things we're doing. We're looking at increasing our funding for the water credits for tank pumping by 10%. I think we're getting close to the budget for that that we included last year. That that's

something that's been successful. Um we're not recommending increasing the funding for the inspections um primarily because I think Connor's been doing more of those in house and so we're just not having to spend the money. It's not that we're not doing the inspections. So I I think that's you know we can we can hopefully look at using that money in other ways. And then that brings me to one thing the septic health advisory committee discussed last time and certainly we can debate about this at the workshop we have but we've included $10,000 in the budget for a marketing campaign which would create a multi-prong strategy uh that can be consistently applied over time and create mechanisms to measure effectiveness. So, you know, the the flyer is something that the mayor just commented on um before my presentation. This would be more robust uh campaign for the septic health program and and so we could talk a little bit more about that at the workshop, but I think it's something that could be valuable. Um obviously, we're getting ready to start the 0% interest septic replacement program, which Kelly's been talking about quite a bit. Um that's that's included in the budget and we have been given the green light to start issuing those funds. Um for facilities planning, uh the board's definitely familiar with the campus master plan. We're working on phase one right now with the replacement of the fitness center. We've also included $50,000 in this budget to do a schematic level design for a new fire station. Obviously, we're applying for funding, legislative appropriations, and we want to be ready in case we we're lucky enough to get something, but starting the process um to design the fire station certainly won't hurt us, and we can still decide when we want to um start with that. Um we are also looking at updating our parks and recreation master plan, something that was in the CIP, and funding for been included in the budget. Um, regarding

our our team, um, we obviously just completed a paying class study the board approved earlier today. Um, funding is included in the budget for that. 3% cost of living adjustment based on the CPI is included in this budget. Um, we're still covering health insurance premiums, 100% for employees, 80% for families. Uh, we've we've experienced an 8% renewal this year, so we budgeted for that. still including career progression, performance-based merit, and within grade pay increases in the budget. Uh obviously maintaining the 5% 401k contribution with no required employee match. Uh the budget does include new heavy equipment operator position for facilities maintenance. We've also included a part-time year-round event planning position. Um the there is a new human resources assistant position that we've included in the org chart, but it's not not adding headcount, it's just sort of reorganizing some existing staff. So, no budgetary impact with that. And something that came up with our tag group and with this uh pay and classification study is we're adding some mental health counseling services. We're actually putting someone on retainer that can help mainly with public safety, but also with other team members who have things that happen where they need assistance in a rapid, you know, progression. So, um, so in closing my part, Amy's still got to do hers. We're not proposing a tax rate increase this year. Um, certainly after what we did last year, we ended up adopting a a rate higher than the revenue neutral rate. I certainly thought this budget year would be easier than it was. We did have to sharpen our pencils quite a bit this year to create a a balanced budget with no tax increase. Um, some of the things we discussed at your workshop last month

didn't make it into the budget and so we'll go over that with you at the May 20th workshop. Um Amy's going to talk a little bit about um sort of comparing last year's budget to this year. Also forecasting what we expect for 2728. Um she can talk a little bit about some of the cost pressures that we continue to experience with the budget. And last but not least, I need to go ahead and thank everybody. You know, this budget is a team effort. Um, individuals who who provide invaluable assistance are Amy primarily. And we also have Steven Panero, our new deputy finance director, Roberto Jan Moi, our human resources director. All of our department head has all of our departmental a lot a large majority of our departmental staff all work on items for the budget. So it is a team effort and I think they do a great job. Just needed to say that and thanks again to the board for all your time and effort helping us work through the budget and the strategic plan. So um I'll pass out hard copies while Amy starts her presentation.

Thank you. Thank you, Andy. Thank you again. I'll try to make this brief. I feel like I wrote a lot because I want to say a lot, but I don't know. The words just kept coming to my head. But anyway, um um so Andy just kind of gave you a highlevel overview of the message and the town manager's message, but I do want you hopefully to uh to direct you to read some other parts of the budget that I find very interesting. And thesecludecludecludecludecludecludecludecludecludecludeclum discussions on the fund balance uh revenue assumptions long range uh and long range financial planning. Um these sections are required from the government finance officers association in order to have a more transparent budget and we will be submitting this budget to the GFOA to ensure that we do prepare a budget to the highest quality that reflects best practices. Um and according to their website they only have about 1,900 budgets that are submitted and ours is one of them. So, I'm proud that we're part of that. Um, so just kind of again picking up where Andy left off with his message. Um, I want to discuss some items that have driven and impacted this budget and looking ahead into future budgets as we do prepare a two-year budget. Um, Andy talked about some uh some things we're doing for employees. And of course, one of our biggest uh we talked about last year is a health insurance. Uh it's it's Last year we had a $400,000 increase and this We had a $180,000 increase which was 8%. And we were told by our broker that that's very good and anything less than double digits is is good. So we'll take that as a win. Um but nonetheless um it is you know a cost that we're absorbing. Um the second thing it's out of our control is the local government employees retirement system. This is the town's required contribution to our

employees for retirement. This number is set by the state treasur's office. Um there's I I don't it's very much in line with other municipalities. I I remember the day back in the day. Um it used to be less than the FICA tax which is 7.65. Now it's double that. And so with that being said, this year our uh expense is $1.8 million for our contribution. Um for shared revenues, I'll talk about that. Last year, not to beat a dead horse, but last year, you might remember that we had a budget shortfall with our sales, occupancy, and land transfer tax. I think we were pretty transparent about that with the board during our budget process last year. So, basically the budget last year, um well, what year are we in now? 25. all my I'm working in like several years now but um so and during that year we you know had budgeted our expenditures to that higher level um but our revenues weren't meeting that so um we were a we were able to figure out how to close that gap we did you know our fund balance did drop um but we were able but we were still within policy so our we were were try had to figure out how to close that gap in other ways without um cutting expenditures and still operating at that high level expenditures Well, with that being said, we're still operating at that high level of expenditures. Nothing's been cut. Um, and the revenues simply aren't keeping pace. Um, so like I said, we kind of got creative with how to make up for that shortfall. Did use fund balance. We were able to balance the budget with some one-time sources, including appropriating fund balance, uh, using more capital investment fund fund balance that than we're putting into it, which is kind of the whole purpose that we have it. Um, and then uh this year completely draining well for the most part draining our POW bill fund balance

that we have um to pay for the 2027 project. It's $300,000. So, we're not using general fund money per se for that project. It's all being used from this the money the state gives us. So, that is one way we were able to balance the budget. But using these one-time revenue sources, they signal that we have reoccurring expenses without a reoccurring revenue source to match it. Um This to me sends a message that revenues need to be adjusted. In 2028, there is a two cent tax increase, but I just want to let the board know, especially for our new members, even though we're having a two-year budget, like that we can only adopt one year at a time. So, the 2028 budget, we're not asking you to adopt it. We can only adopt the 2027 budget, but it's for a planning tool for discussion. So, even though it's in there, we're not beholden to it. It's just kind of like I said, for planning purposes. Um, and this message also resonates with the I have looked at some of the other budgets online. Um, including Derek County's message of no tax rate this year, but uh, pressures on on expenditure growth continue. Revenues aren't keeping pace and the gap has been solved with one-time actions, but their messaging is is likely a tax increase anticipated in 28. Same thing with Southern Shore budget. tax increase this year, probably one next year. Um, this year, Kittyhawk is proposing a 1.5% tax increase from what I saw. And I think Andy said in the voice man said they're doing a 3centent tax increase. Um, and I couldn't find the other any of the other ones. I loo tried to find all of them, but um, so when other other towns in the county are playing on do this, it means that their uh, levies go up, right? And if ours stays the same, well, you know, with the shared revenues, occupancy, sales, land transfer, they're

distributed based on the levy. So, we lose a piece of that pie if everybody else raises their taxes. And I mean, I feel like we need to do it just because of all the reasons I've outlined, but it's twofold because we're also losing money if we don't if we know everybody else is going to do it. um we're going to lose a piece of that pie, which I think we illustrated that when we did the budget last year, but um and of course the big change in the budget this year, the reason for the percentage change is the the debt uh the debt service on the beach nourishment, 3.1 million that is funded through the capital reserve fund. Um and it shows up as a debt payment in in the general fund budget, but it shows up as revenue um in in the general fund also from the capital reserve fun. So it's kind of like a flow of in and out because you can't report activity in the capital reserve fund. It only can hold money. So um that is the general fund part. Um

did we say how much it was? The what was the general fund the budget? Oh um I don't know. Let me open it up. 35 6

35. Sorry. details. I'm pulling it up right now in the chart. $35,690,130. So that is our our budget ordinance for this year compared to 32 million from last year. And again, that main component is the debt service from the beach nourishment. Okay. Um And I, you know, just again, not to beat a dead horse again with the shared revenues, um, I don't think I need to spend a lot of time explaining why they're budgeted flat, uh, based on what I described. Um, and and that's really just based on the current data of what we're receiving and and trends from the past couple years. Um, and you know, the League of Municipalities, Dare County, everybody's like messaging is all the same. And so, um, I know talking about the water fund, Andy talked about the 5% increase. Um looking ahead um we have some hy heavy hitters in 28. So this is which that's kind of a whole another budget discussion outside of this but you know we have the the integrated plan with streets and storm water and pedestrian projects and water lines. So that that is in our all these items are in our CIP, but we have some engineering costs for asbestous cement pipe replacements um in 2028 as well as uh Vista Colony waterline replacements. We've tried to get grants for these projects. We're still trying to get grants for these projects, but I just feel like for transparency purposes, wanted to mention it. Um you know, it is in our CIP as we're funding it. So um and the other thing that's not in our CIP, in 28 is I talked a little bit about the master plan that we're working on and we're finalizing it this year and right now

we're engineering um we are we have paid engineers to do uh engineer Gall Street and a street for the station improvements and we did not put that in the budget or the CIP just because we're not comfortable with knowing how much it's going to cost. So in the past CIP that's showed up in the 28 budget as well. So just you know kind of reiterating how we're planning you know incrementally for these things and and again it'll be part of a bigger discussion for the budget next year. Um and I don't know if you want to conclude or if there's anything I left out um but I mean I think we're pretty proud of this budget that you know it's delivering for the community advancing infrastructure and of course like invest in employees with our total rewards that we're also evaluating. Um again, no tax increase in 27. But I think the message is the messaging is and not just our messaging. U we can get by this year um but probably need to look at next year. Um and of course we want to thank everybody and of course the board. So

yeah, I mean I think the um especially with the capital, you know, and I've alluded to this before, but we're working on a lot of different things right now. The board heard a presentation last month about the storm water master plan that's going to be finalized over the next six months. We're doing a water system master plan. You know, David Ryan uh spoke about our streets and storm water plan. That was the 20-year plan I mentioned and how much more expensive things are getting. And so, we might have to sort of reook at that as well. So when you consider all of those things and coupled with the fact that we're trying to to get some appropriations, we don't really know where we stand. We've got a lot of things I think we need to figure out in the coming year. And so I think, you know, probably going to need to do a little bit more midyear budget planning, more so than we've done in the past few years, to sort of revamp our CIP and then look at some of these long-term cost pressures and and next year's budget might look a lot different than this year's, but um a lot of sharpening I I forecast for the next year but know really appreciate the board's consideration of this and you know if you have questions certainly ask those forward them to me you have a copy of the budget you know we'll give you some some more information at the May 20th workshop and we'll be ready for the public hearing in January so thank you

very good thank you Andy thank you Amy and thank you to all of the staff who always put so much work into this um over the last several months to to bring it to this point. Um I'll talk a little bit about this more later, but there there are some financial pressures coming down the down the pike. Um I think um I think staff's approach to um taking a mid-year look at budget is going to find itself to be very prudent. Uh while the you know perhaps the local tourism economy remains robust um inflation and then the reluctance of government up the chain to um implement taxes and and share money um with the municipalities is just putting more and more pressure on the municipalities themselves to do the things that they have to do. All right. Um that brings us to a beach nourishment update. Who's doing this? You or David? Good morning, mayor and commissioners. Um just wanted to go ahead and pass along uh an update of the recent progress that we've made uh towards the beach nourishment project and what we can expect here in the upcoming weeks as we get closer towards construction. All right. So, there's been a lot of uh preconstruction activity that has occurred here recently. Um uh here up on the screen I've got a photo of the landing point down in South Nags Head down at Camelot Street that occurred here within the the past couple weeks. Um we'll see a similar subline be landed uh towards the end of this week up

towards uh Nags Head Pier actually just south of Nag Head Pier and north of Curly Street. So, we're starting to see um not only some uh pipelines arrive, but also some equipment arrive. Uh I don't know if you saw this morning, but there was a loader delivered um to Conch Street um which will aid in that subline landing uh later this week. Uh equipment has been delivered down to ramp one and we anticipate additional equipment to be mobilized here next week down at Junko Street. Uh there was a beach um condition or a preconstruction survey that was just recently completed that's now in the hands of our coastal engineers. They're going through that information to refine the design. Part of that will be to look at the two ED alternates for the additional 200,000 cubic yards of sand and making recommendations on where that should be placed as um well as moving towards the uh issuance for the actual construction plans themselves with the project schedule. um what we've seen already, we've seen some shore work um and that's taken place here over the uh past several weeks and will continue so for the next couple weeks. Uh equipment mobilization as I had just discussed and the arrival of the dredges. Um the most recent information that we have received is the hydraulic dredge or the cutter dredge is going to arrive on station on or around May 20th to begin pumping uh operations down there in South Nagsad. And then there will be a second dredge which is a hopper dredge which will uh is anticipated to be on station on around

May 23rd to go ahead and start pumping in the north end of town. Um while they are pumping uh there will be some other work that will take place to include the installation of sand fencing and sprigging um before the pumping operations wrap up in and around mid July is what that anticipated completion date is at this point in time. Um just wanted to review some of those things uh that we can expect during the course of construction. Uh these operations occur 247. Um there will be active work area closures. Um during the daytime they will range between 1,500 to 2,000 ft and then during the night time that will be reduced to a 1,000 ft closure area. Um you can see in the photo up here, this is of a a previous project where we've got the uh pipeline. Um there's sand ramps that are spaced at 500 foot intervals and they're also located at the public beach accesses to go ahead and provide a means of u travel uh for those recreational users uh to the oceanfront. And lastly, the Beachville operations, um, they're anticipated to last about two to four days in any one area. Um, in the north end, that will probably be more like one to two days. And when you get down south where you have a larger fill volume section, um, you're probably going to see more in the 3 to 4 day range based upon, um, the rates that they have projected, uh, to be able to place that sand. Um, would be beneficial to go ahead and uh bring up a map that shows some of the um locations of where

this work is going to take place. Um this is in the south end of town. Uh the landing point is at Camelot Street and initially the they will be working with Beachville operations towards Junko Street which is going to be one of their staging areas. So, they're going to fill out that that area shown here in green before they go ahead and flip it. And then they will work southwards to fill this area that's been highlighted in orange. And uh like I had mentioned before, down here at ramp one, that will be one of their staging areas, as well as up here to the north at Junko Street. up in the north end of town. Their main staging area will be the conch street beach access and as I had mentioned the uh this is what's highlighted here in red is the pipeline corridor and that landing point is somewhere between Kuru Street and Nags Head Pier and they will work uh to go ahead and fill out north up towards Bonnet Street before they go ahead and flip that line and work south. This is one of the things that we've been able to work out with the contractor. Initially, they were going to work south in the south end of town and then proceed north. Uh but due to our concerns about the Fourth of July holiday, they were able to go ahead and modify their locations and their sequencing for the Beachville operations. Um and uh essentially um once they fill out that area, they will then um use the pipeline landing um in the 4200 block of South Virginia Dair Trail. Uh there is a

landing point kind of using St. Andrews Church as a reference point. They will work north as shown here in green and then work south um down towards um Enterprise Street which will be another location where they have for a staging area. And the final landing point for the hopper dredge will be just south of the Epstein Street bath house. And they will work in a similar direction where they'll work north as shown in green and then south as shown here in orange. While the hopper dredge is working up north, the uh cutterhead dredge will be working down south. Um, as I had shown before, uh, the landing point is Camelot Street, and they'll work in that section. Um, like I said, north, then south, then back north again, as shown in this muted green area before they jump up to their next landing point, which is up around Harrove Street Beach access. And they will work north and then south. And with that, um, the two beachfilled, um, areas will go ahead and merge between the cutterhead and the hopper, um, dredge operations. Somewhere up around, uh, Glidden Street is what is anticipated. So, um, just wanted to go ahead and just give an overview as to what we can expect, what the sequence is going to look like, and where the operations will take place first, uh, for the project. I'll be glad to answer any questions that you have.

Questions, please. It's a great explanation. Thank you. I know a lot. Yeah. In terms of the add-on, um I think I remember will that is that necessarily going to be added on or we won't know until we see the results of the survey. So once we receive this survey, um the process that uh the engineer will take with the town is looking at any areas within the template that do do not meet our level of protection.

And so if all the level of protection is met throughout the project area, then they would consult with us on where we could go ahead or where we think is best suited for that. Um, originally when we talked about this, we were looking at areas in reach one and reach two to improve the recreational beach width. So, um, we'll we'll look at a couple different things before we go ahead and decide that and we anticipate that will occur here within the next week.

Thank you, Dave. All right. Thank you very much. All right. That brings us to the board of commissioners agenda. I think I'll start to my left. Molly, anything? I have nothing today. All right. I have nothing. Okay, next week.

All right. Very good. Um, that brings it to the mayor's agenda. I do have several things. Um, one, I would like to take this opportunity to introduce Jocelyn Brown. Many of you know her or have already met her this morning. Um Joselyn uh grew up in Nags Head. Uh she is studying uh political science at Florida Atlantic University um and expressed an interest in uh public policy and the uh operation of of town government and so she is my shadow uh in sort of an an informal internship this summer. Uh so she'll be attending our meetings and sort of studying our documents and hope to be able to connect her maybe with some staff as we go along uh through the summer so that she can get a full picture of what um what town government is like. And so welcome. Um so the we have a legislative visit scheduled uh next week. Um se several board members um and the town manager are are planning to attend that. Now we'll be going to to Raleigh. Our uh lobbyist is in the process of setting up some meetings. There are a number of things that the town of Nagsad is concerned with um as we as we go to Raleigh. Um, one is the um the downzoning um issue that has complicated our lives, complicated Kelly's life obviously over the last several weeks um and and it is hindering initiatives within the town and we were we were well under our way on our way to doing something about accessory dwellings and maybe some other things and that has stymied our work. Um and so we still need uh to address that. The con legislature continues to um

attempt to take away uh authority from from towns um including the parking provision that also came up this morning. Um you know, how in the world they think a town like Nagshead is supposed to function without a parking standard of any kind is just m utterly mystifying. and and they do these things I think without asking anyone what the what the implications are. Um there is a filing um to um do away with the no hardened structures provision uh on the beach which has um been of longstanding and is of concern to the town um in in a number of ways. Um, and so we and and our our financing requests that we have before the legislature help with waterlines as, uh, Amy it mentioned earlier. Um, and so, um, you know, we talked a little bit about the budget and the budget difficulties that are coming down the line because, you know, the the, uh, the North Carolina legislature is so anti- tax, they they don't even tax a reasonable amount. so that they can do their job. Um and um and that's disheartening, but we're going to have to find our our own way through that. And um so again, um just want the citizens to know that we are doing our best. Um we are carrying that message. U we are going to be prudent when it comes to finances uh going forward and um and do everything we can in the in the town's best interest. Um, last a couple of weeks ago I attended the North Carolina Beaches Inlets and Waterways Association meeting uh down in Emerald Isle. A big part of that was a

discussion about sustainable beach nourishment and it featured um Dair County's projects uh pretty prominently and um you know what is a what is sustainable beach nourishment? Well, there are several things that go into that. Um, one is having, you know, sources of sand, uh, having contractors to do the work. But the biggest part of it is the financial part of it. And beach nourishment is getting more and more expensive, uh, every year. Um, it is more and more critical to the economic well-being and health of communities like ours. And um and there's a lot of pressure on the resources that are available uh to do the beach nourishment that needs to be done. And um you know again um the federal government's not interested in in um picking up a new beach nourishment project. um they may not uh help us repair our beach nourishment project um uh if it's damaged by a storm and the state is not seemingly interested in in helping us fund beach nourishment uh to to any great degree and so um that all points to the town of Nags Head going it alone um to a greater and greater degree as we go forward through the years um unless that that context changes but I think um we We positioned ourselves several years ago for that by adopting new um municipal service districts so that we had uh we had a broader footprint for financing the projects. But again that you know points to a concern that going forward that um that is going to to fall great more more to us. Um on a positive note um uh I was at the same the same week earlier in the same week I attended the coastal leadership institute and just to give you a little

snapshot that particular session was about sustainable shorelines and so what we get to do in that in that group is um we hear from um scientists and and agencies about the value of um sustainable shorelines. We get to take a boat trip. we get to go out and actually look at these with a guide um who's describing um the infrastructure we're looking at and how it works and what it costs and what the future is and and um and all the implications of that and then we get to, you know, sort of sit down and have a follow-up discussion and and um and it's a very rich kind of experience. And in the town, we have some sustainability projects coming up. We're getting ready to build our shoreline um shortly. And in our retreat, the board talked about doing a better job of telling our story um our success stories. So after that I I spoke with Andy and um you know a possibility is to for us when we're presenting our when our sustainable projects are underway is sort of do a miniature version of that which is to invite the public invite school children um maybe when our engineer is here doing an inspection anyway have a little discussion about the viability the value um of doing a project like uh building the shoreline and then um few refreshments and sends people on their way. And I think it would be part of that storytelling. Um and um part of that also is um Nagad being a leader and an advocate um in the greater world for more communities to sort of take up that that kind of work and to demonstrate the value of of that sustainable work. And um so hopefully we'll get to maybe maybe do some things like that that are sort

of minimal extra effort but uh really uh could be fun. Really really could be fun. Um so that's that's all I have uh for now. Uh everybody get a chance to speak? Did I interrupt? Okay. All right. Thank you.

All right. Um, and so, uh, before we go into close session, um, is there any other business to come for the board? Nobody's really waiting for any other business anyway. Um, all right. If there is no other business, then a motion to go into I will make the motion that we go into close session to consider applications for the Nags Head Lighter and Nags Header awards pursuant to general statute 143 318.11A2. So moved. Second. Have a second. All in favor say I. I opposed. All right. Thank you. Board will be in close session.

Okay. Right. The board has returned to open session. Mr. Lighty, will you report, please? Yes, sir. The board did discuss and took action uh on the two uh honorary matters, but no actions need to be reported at this time. All right. Very good. Thank you. We addressed other business. So, um, our final bit of business today would be a recess to our midmon meeting to be followed by the 2627 budget workshop. So, move motions are second. Second. I'm sorry, Mr. Mayor. Is it a budget workshop? Oh, it is or a budget public hearing to consider the the budget public hearing was scheduled for June. This is this is the workshop on the manager's recommended budget.

Okay. All right. Right now we don't have any agenda items for for the reg the midmon meeting. So it could end up being just a workshop but something could come up. But the motion is for midmon meeting to be followed by the workshop. That covers all the bases then. Okay. And I had a second. So all in favor say I. I. Opposed. All right. The board is in recess.