How Development Agreements are Used in North Carolina
In North Carolina, developer agreements serve as vital instruments for local governments, fostering collaboration between municipalities and developers to ensure responsible growth and development. These agreements are permitted under the Code of North Carolina and are utilized throughout the State. The agreements establish clear guidelines and expectations for both parties, laying the groundwork for sustainable and harmonious community development.
One of the key benefits is the ability to address infrastructure needs proactively. By outlining requirements for roads, utilities, and other essential services, developer agreements help mitigate potential strain on public resources, ensuring that new developments contribute to, rather than detract from, the overall quality of life for residents.
Developer Agreements in Leland
In Leland, one of the major projects that has a developer agreement is Brunswick Forest. Under a 2019 agreement, the Town and the developer (Funston Land and Timber) agreed to the construction of various water, sewer and road infrastructure improvements. This was a completely public and transparent process.
For example, the developer is committed to the obligation to complete a portion of the extension of Brunswick Village Boulevard relating to the Sunny Point Railroad. Utilizing the private sector to construct infrastructure directly allows for it to be installed at a lesser cost and faster than if the Town had to move through the public procurement process to undertake the project itself. These projects were funded through a number of sources including utility funds and general funds.
While it has been suggested otherwise, there are NO funds budgeted in the Town’s Fiscal Year 25 budget to support any developer agreements.
Economic Development and Job Creation
Developer agreements provide a framework for promoting economic development and job creation. By specifying commitments related to job creation targets, affordable housing provisions, or other community benefits, local governments can leverage development projects to stimulate economic growth. These agreements enable municipalities to negotiate concessions or incentives that align with broader strategic objectives, fostering a more inclusive and resilient local economy.
Environment and Sustainability
Furthermore, developer agreements offer a mechanism for addressing environmental concerns and promoting sustainability initiatives. By incorporating provisions for green building practices, open space preservation, or stormwater management, these agreements help minimize the environmental footprint of new developments while enhancing the resilience of communities to climate change impacts. Through collaborative negotiation and planning, local governments can work with developers to achieve shared environmental goals and uphold stewardship principles.
Ultimately, developer agreements serve as powerful tools for promoting transparency, accountability, and community engagement in the development process. By establishing a formal framework for dialogue and negotiation, these agreements empower local governments to shape development outcomes in alignment with the long-term interests of their constituents.
I think it is important to distinguish that what is allowed in one State is not necessarily permitted in North Carolina. I contacted the North Carolina League of Municipalities and they confirmed the State General Assembly has no appetite to change the law with respect to requiring developers to pay impact fees or any other kind of proposal. The League publishes a list of legislative goals that you can read by clicking here.
