GENERAL ASSEMBLY OF NORTH CAROLINA
1993 SESSION

CHAPTER 174
SENATE BILL 767

AN ACT TO MODIFY THE AUTHORITY OF MECKLENBURG COUNTY AND THE CITY OF CHARLOTTE TO UNDERTAKE LOCAL DEVELOPMENT ACTIVITIES.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 158-7.1 reads as rewritten:
"§ 158-7.1.  Local development.
(a)	Each county and city in this State is authorized to make appropriations for the purposes of aiding and encouraging the location of manufacturing enterprises, making industrial surveys and locating industrial and commercial plants in or near such city or in the county; encouraging the building of railroads or other purposes which, in the discretion of the governing body of the city or of the county commissioners of the county, will increase the population, taxable property, agricultural industries and business prospects of any city or county.  These appropriations may be funded by levy of property taxes pursuant to G.S. 153A-149 and 160A-209 and by the allocation of other revenues whose use is not otherwise restricted by law.
(b)	A county or city may undertake the following specific economic development activities.  (This listing is not intended to limit by implication or otherwise the grant of authority set out in subsection (a) of this section).  The activities listed in this subsection (b) may be funded by the levy of property taxes pursuant to G.S. 153A-149 and G.S. 160A-209 and by the allocation of other revenues whose use is not otherwise restricted by law.
(1)	A county or city may acquire and develop land for an industrial park, to be used for manufacturing, assembly, fabrication, processing, warehousing, research and development, office use, or similar industrial or commercial purposes.  A county may acquire land anywhere in the county, including inside of cities, for an industrial park, while a city may acquire land anywhere in the county or counties in which it is located.  A county or city may develop the land by installing utilities, drainage facilities, street and transportation facilities, street lighting, and similar facilities; may demolish or rehabilitate existing structures; and may prepare the site for industrial or commercial uses.  A county or city may engage in site preparation for industrial properties or facilities, whether the industrial property or facility is publicly or privately owned.  A county or city may convey property located in an industrial park pursuant to subsection (d) of this section.
(2)	A county or city may acquire, assemble, and hold for resale property that is suitable for industrial or commercial use.  A county may acquire such property anywhere in the county, including inside of cities, while a city may acquire such property inside the city or, if the property will be used by a business that will provide jobs to city residents, anywhere in the county or counties in which it is located.  A county or city may convey property acquired or assembled pursuant to this paragraph pursuant to subsection (d) of this section.
(3)	A county or city may acquire options for the acquisition of property that is suitable for industrial or commercial use.  The county or city may assign such an option, following such procedures, for such consideration, and subject to such terms and conditions as the county or city deems desirable.
(4)	A county or city may acquire or construct one or more 'shell buildings', which are structures of flexible design adaptable for use by a variety of industrial or commercial businesses.  A county or city may convey or lease a shell building or space in a shell building pursuant to subsection (c) of this section.
(5)	A county or city may construct, extend or own utility facilities or may provide for or assist in the extension of utility services to be furnished to an industrial facility, whether the utility is publicly or privately owned.
(6)	A county or city may extend or may provide for or assist in the extension of water and sewer lines to industrial properties or facilities, whether the industrial property or facility is publicly or privately owned.
(c)	Any appropriation or expenditure pursuant to subsection (b) of this section must be approved by the county or city governing body after a public hearing.  The county or city shall publish notice of the public hearing at least 10 days before the hearing is held.  If the appropriation or expenditure is for the acquisition of an interest in real property, the notice shall describe the interest to be acquired, the proposed acquisition cost of such interest, the governing body's intention to approve the acquisition, the source of funding for the acquisition and such other information needed to reasonably describe the acquisition.  If the appropriation or expenditure is for the improvement of privately owned property by site preparation or by the extension of water and sewer lines to the property, the notice shall describe the improvements to be made, the proposed cost of making the improvements, the source of funding for the improvements, the public benefit to be derived from making the improvements, and any other information needed to reasonably describe the improvements and their purpose.
(d)	A county or city may lease or convey interests in real property held or acquired pursuant to subsection (b) of this section in accordance with the procedures of this subsection (d). A county or city may convey or lease interests in property by private negotiation and may subject the property to such covenants, conditions, and restrictions as the county or city deems to be in the public interest or necessary to carry out the purposes of this section.  Any such conveyance or lease must be approved by the county or city governing body, after a public hearing.  The county or city shall publish notice of the public hearing at least 10 days before the hearing is held; the notice shall describe the interest to be conveyed or leased, the value of the interest, the proposed consideration for the conveyance or lease, and the governing body's intention to approve the conveyance or lease.  Before such an interest may be conveyed, the county or city governing body shall determine the fair market value of the interest, subject to whatever covenants, conditions, and restrictions the county or city proposes to subject it to; the consideration for the conveyance may not be less than the value so determined.
(d1)	In arriving at the amount of consideration that it receives, the Board may take into account prospective tax revenues from improvements to be constructed on the property, prospective sales tax revenues to be generated in the area, as well as any other prospective tax revenues or income coming to the county or city over the next 10 years as a result of the conveyance or lease provided the following conditions are met:
(1)	The governing board of the county or city shall determine that the conveyance of the property will stimulate the local economy, promote business, and result in the creation of a substantial number of jobs in the county or city.
(2)	The governing board of the county or city shall contractually bind the purchaser of the property to construct improvements on the property within a specified period of time, not to exceed 10 years, which improvements are sufficient to generate the tax revenue taken into account in arriving at the consideration.  Upon failure to construct the improvements specified in the contract, the purchaser shall reconvey the property back to the county or city.
This subsection applies to the Cities of Charlotte, Concord, Conover, Kannapolis, Mocksville, Mooresville, Mount Airy, St. Pauls, Selma, Smithfield, Statesville, Troutman, and Winston-Salem, and the Counties of Alleghany, Ashe, Cabarrus, Davie, Forsyth, Franklin, Iredell, Johnston, Mecklenburg, and Rockingham. 
(e)	All appropriations and expenditures pursuant to subsections (b) and (c) of this section shall be subject to the provisions of the Local Government Budget and Fiscal Control Acts of the North Carolina General Statutes, respectively, for cities and counties.  The budget format for each such governing body shall make such disclosures in such detail as the Local Government Commission may by rule and regulation direct.
(f)	All appropriations and expenditures pursuant to subsections (b) and (c) of this section shall be subject to the following limitations:  No county or city shall have an aggregate investment outstanding at any one time which exceeds one-half of one percent (0.5%) of the outstanding assessed property tax valuation for the governing body as of January 1 of each year, beginning January 1, 1986.
(g)	Repealed by Session Laws 1989, c. 374, s. 1."
Sec. 2.  This act applies only to Mecklenburg County and the City of Charlotte.
Sec. 3.  This act is effective upon ratification.
In the General Assembly read three times and ratified this the 17th day of June, 1993.

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Dennis A. Wicker
President of the Senate

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Daniel Blue, Jr.
Speaker of the House of Representatives