ANNEXATION AGREEMENTS. What is it? Shared Impact and Benefits. How long does this take to implement? Costs. The Bottom Line

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1 ANNEXATION AGREEMENTS What is it? An annexation agreement is an interlocal agreement between one or more local governments that delineates future growth boundaries by determining where the localities may annex. North Carolina law permits municipalities to annex virtually at will provided certain conditions are met, and jurisdictions sometimes are tempted to annex to get desirable areas before their neighboring governments do. Annexation agreements are a tool that remove or reduce this pressure. Annexation procedures in South Carolina differ markedly from those in North Carolina. Because municipalities in South Carolina must rely on a petition from the property owner or an election to annex territories, the process is much more difficult. South Carolina law does not provide for annexation agreements among municipalities. State legislation does allow for a municipality to secure extraterritorial powers for land use controls under an agreement with the county. Because of these differences in law, this toolbox item applies only to North Carolina locales. This Action Item can be implemented as a POLICY ORDINANCE PROGRAM Shared Impact and Benefits While annexation agreements do not in themselves promote infill, improve air quality or preserve open space, the agreements allow for better planning and more efficient utilization of infrastructure. Annexation agreements eliminate land battles and potential legal conflict between neighboring jurisdictions. Knowing where a community may and will grow is a cornerstone of smart growth and may help to head off unintentional sprawl. Communities can work together to determine where they will grow and discuss what kind of buffering needs to be in place to provide a sense of separation between the communities. How long does this take to implement? The time required for development of annexation agreements will depend on the municipalities involved. Smaller municipalities with fewer annexation possibilities will take less time to work out the agreement areas. When the areas are agreed upon, the communities will hold public hearings on an annexation ordinance. Once the ordinance is adopted, the agreement becomes effective immediately. Costs If the municipality has a planning staff and someone available for mapping proposed boundaries, there should be no extra cost except the staff time involved. If the municipality hires a consultant, there will be an additional fee. The Bottom Line By working together, communities can determine where they will grow in the future and be better able to plan for that growth. Annexation agreements eliminates property owners doubts about where they will be annexed. Interested? Read on!

2 PAGE 2 Who needs to be involved in implementation? The governing board of each jurisdiction (to approve the agreement) ANNEXATION AGREEMENTS Municipal staff Public works or utility staff Action Steps 1. Read the Basic Information section below 2. Contact neighboring municipalities. 3. Delineate the annexation boundaries. This can be done at the staff level. If you need assistance, contact Centralina s planning staff at (704) Develop the agreement. (A sample is attached.) 5. Advertise the public hearing. 6. Hold the public hearing. 7. Adopt the ordinance. 8. Once the agreement has been adopted, you must notify the other municipality of each annexation. Resources The only cost to the municipality for developing an annexation agreement is the cost of staff time for preparation, and consultant time should you choose to use a consultant. There is generally no need for extensive legal fees. In addition, there will be a small fee for advertising the public hearing. Who s doing this? The Towns of Weddington and Marvin have entered into an annexation agreement. Contact the town planner at (704) for more information. Both the ordinance and the annexation map are attached. Mecklenburg County has entered into agreements with each of the jurisdictions within the County as well as with Concord and Harrisburg in Cabarrus County. The City of Gastonia has entered into agreements with Cramerton, Dallas, Bessemer City, and Kings Mountain. Matthews and Stallings have entered into an annexation agreement with the County line as the divider. The City of Conover has agreements with Hickory, Newton and Claremont. The Town of Gibsonville has been working with Burlington on the development of an annexation agreement for nearly a year. The Town of Apex has an annexation agreement with the Town of Cary. The Town of Kernersville has had an agreement with Winston-Salem for ten years. The agreement has been amended three times. Kernersville also has agreements with High Point and Walkertown. Although both municipalities and counties can participate in annexation or sphere of influence agreements, annexation agreements are most often applicable between municipalities. Tracking Progress Let CCOG know when you have adopted an annexation agreement (or agreements) by calling Provide Centralina with the map boundaries of your agreements, so that they can be added to the Regional GIS Database. Contact Bob Henderson at to make arrangements.

3 ANNEXATION AGREEMENTS PAGE 3 Statutes authorizing annexation agreements are found in NCGS 160A through 160A As noted previously, there is no South Carolina counterpart because of differences in South Carolina annexation laws. Two or more cities can enter into an annexation agreement. Basic Information ten days prior to the public hearing. [(160A (c)]. If the agreement allows a city to annex an area more than three miles beyond its primary corporate limits, the county board of commissioners must approve the agreement for the area that lies beyond three miles. [NCGS 160A-58.24(e)]. These agreements shall state the length of their duration (which according to NCGS 160A shall be of a reasonable length but shall not exceed 20 years.) A participating city that annexes any territory after the adoption of the agreement must give at least 60 days notice of that annexation to the other participating city/ies. This time period may be waived if agreed to by the cities participating in the ordinance. [NCGS 160A-58.24(a)(5)] The agreement may be adopted by ordinance by each city after a public hearing. A joint public hearing involving all of the participating cities may be held. Notice of the public hearing must be by newspaper with the notice being published at least An annexation agreement may be modified or terminated by a subsequent agreement entered into by all participating cities. [NCGS 160A-58.24(f)] If a city enters into an annexation agreement with another city, it can satellite annex an area that lies closer to the primary corporate limits of that other city, so long as the area in question is contained within the annexing city s annexation agreement area [NCGS 160A-58.1(b2)]. (NOTE: NC General Statues normally forbid cities to satellite annex an area that lies closer to the primary corporate limits of another city. The above referenced statute was adopted in 2001 to allow cities to satellite annex such areas so long as the area would be annexable by a city per the annexation agreement.) FAQ s Q: Once we adopt an annexation agreement, how long are we bound by it? A: The agreement will state the length of duration and cannot exceed 20 years. A municipality can unilaterally withdraw from an agreement by repealing the annexation agreement ordinance and giving the other city/ies five years notice. If there are more than two participating cities that are party to the agreement, the withdrawal of the third city shall not invalidate the agreement between the two other cities. Q: How can an annexation agreement really improve a community? A: It is true that the annexation agreement itself will not improve air quality or water quality or increase the amount of open space in a community. However, municipalities with annexation agreements in place report that their agreements are supportive of good planning and planning goals and that they foster regional cooperation. Discussions surrounding an annexation agreement also provide a forum for discussing how communities want to grow. Typically, every community wants a sense of place and to be differentiated from its neighbors. No town wants to be indistinguishable from the next town over. Annexation agreement discussions can be framed to include discussions of how each participating town will establish their identity at their borders, whether there should be open-space buffers in place, what kind of connectivity should occur (other than major thoroughfares), and other issues.

4 PAGE 4 FAQ s (cont.) ANNEXATION AGREEMENTS Intersecting Interests Q: Don t annexation agreements lead to sprawl by encouraging towns to grow as big as they can, as fast as they can? A: They may, if a community s leadership does not exercise the political will to put in place, and follow, land use policies that promote clustertype development, open space preservation, good connectivity (including bicycle and pedestrian connectivity) and mixed uses. The key is to use annexation agreements as a de facto urban growth boundary, and to carefully plan and implement what happens INSIDE the town s borders. For More Information Frayda S. Bluestein Institute of Government School of Government Bluestein@sog.unc.edu Bill Duston Planning Director Centralina Council of Governments 525 North Tryon Street, 12th Floor Charlotte, NC bduston@centralina.org UNIFORM LAND-USE REGULATIONS The annexation ordinance itself does not necessitate the development of compatible land uses or planning codes between or among the participating jurisdictions. However, in fostering regional cooperation and good planning, it can contribute to discussions of growth issues, transportation planning and common approaches to land use that benefit both, or all, participating jurisdictions. CONNECTIVITY FOR MULTI-MODAL TRANSIT Establishing region wide multi-modal transit systems requires regional coordination. Annexation ordinances between municipalities help create a useful cooperative forum for the planning of bikeways, greenways, bus routes, and rail. Prepared by Centralina Council of Governments in collaboration with Catawba Regional Council of Governments, 1/2004, updated 8/2010.

5 SAMPLE ANNEXATION AGREEMENT WHEREAS, the Town of Weddington and the Village of Marvin, duly incorporated municipalities under the laws of the State of North Carolina, desire to eliminate uncertainty among residents and property owners in unincorporated areas adjacent to the participating municipalities and also to improve planning by public and private interests in such areas; and WHEREAS, Chapter 160 A, Article 4A, Part 6 of the General Statutes of North Carolina (hereinafter referred to as the "Act") authorizes municipalities to enter into binding agreements concerning future annexation in order to enhance orderly planning by such municipalities as well as residents and property owners in areas adjacent to such municipalities; NOW, THEREFORE, THE PARTICIPATING MUNICIPALITIES AGREE AS FOLLOWS: 1. This Agreement is executed pursuant to the authority of the Act, codified as G.S. Chapter 160A, Article 4A, Part This Agreement shall be in effect until (insert date up to 20 years after agreement effective date). 3. The Village of Marvin may not annex the area as described in the following: A. Beginning at the point of intersection of the northwest corner of the Weddington primary corporate limits and the Mecklenburg-Union County line; thence west approximately 5,525 feet to the point of intersection with the northwest corner of Union County Tax Parcel B; thence south 2,348 feet along the western and southern boundary of Lot B to the intersection with Union County Tax Parcel A; thence southwest to the point of intersection with Union County Tax Parcel ; thence following the southern boundary of Union County Tax Parcel A to its point of intersection with Union County Tax Parcel ; thence following Union County Tax Parcel southeast to the point of intersection with the Weddington primary corporate limits (i.e., Walden at Providence Subdivision); thence following the Weddington primary corporate limits in an easterly then northerly direction to its intersection with the Mecklenburg-Union County line; and B. The area contained in Union County Tax Parcel ; and C. The area beginning at the point of intersection of the Weddington primary corporate limits at the intersection of Ennis Road and New Town Road; thence west along New Town Road to NC 16; thence south along NC 16 to the Weddington primary corporate limits; thence west and north along the Weddington primary corporate limits to NC 16; thence north and east along the Weddington primary corporate limits to the intersection of Ennis Road and New Town Road. 4. The Town of Weddington may not annex the area as described in the following: Beginning at the point of intersection of the Village of Marvin s primary corporate limits, Stacy Howie Road, and the South Carolina State Line; thence southeast approximately 13,325 linear feet following the South Carolina State Line to the point of intersection with Union County Tax Parcel ; thence east 3,430 linear feet;

6 thence north approximately 3,520 linear feet to the point of intersection with Waxhaw -Marvin Road; thence southeast following Waxhaw-Marvin Road to the point of intersection with Gray Byrum Road; thence east to the point of intersection with Union County Tax Parcel ; thence north along the western property line of Union County Tax Parcel to the point of intersection with NC 16; thence north along NC 16 to the point of intersection with Union County Tax Parcel ; thence east approximately 3299 feet following the southern boundary of Union County Tax Parcel to the point of intersection with Union County Tax Parcel ; thence south approximately 320 feet along the western boundary of Union County Tax Parcel ; thence southeast 1451 feet along the southern boundary of Union County Tax Parcel to the point of intersection with Union County Tax Parcel ; thence north approximately 990 feet along the western boundary of Union County Tax Parcel to the point of intersection with State Road 1320 (Broome s Old Mill Road); thence north along State Road 1320 to the point of intersection with New Town Road; thence west along New Town Road to the point of intersection with NC 16; thence south along NC 16 to the point of intersection with the Weddington Primary Corporate Limits; thence following the Weddington Primary Corporate Limits south approximately 1,965 feet, then west approximately 5,890 feet, then north along the most western border of the Weddington Primary Corporate Limits to the point of intersection with Union County Tax Parcel ; thence northwest approximately 330 feet to the point of intersection with Union County Tax Parcel A; thence northwest along the southern boundary of Union County Tax Parcel A to the point of intersection with Union County Tax Parcel D; thence northeast long the eastern boundary of Union County Tax Parcel D to the point of intersection with Union County Tax Parcel B; thence northwest 504 feet, then north 1,844 feet along the south and west boundary of Union County Tax Parcel B to the point of intersection with the Union-Mecklenburg County line; thence southwest approximately 5,500 feet following the Union-Mecklenburg County line to the point of intersection with the Village of Marvin Primary Corporate Limits. See attached map labeled Marvin/Weddington Annexation Agreement Map for a general description. 5. The effective date of this Agreement shall be or the date of adoption of the approving ordinance by the last participating municipality to do so, whichever is later. 6. At least sixty (60) days before the adoption of any annexation ordinance, the participating municipality which is proposing any annexation in the area(s) subject to this Agreement shall give written notice to the other participating municipality of the proposed annexation. Such notice shall describe the area to be annexed by a legible map, clearly and accurately showing the boundaries of the area to be annexed in relation to the area described in this Agreement; roads, streams and any other prominent geographical features. Such notice shall not be effective for more than 180 days. 7. This Agreement may be modified or terminated by a subsequent agreement entered into by the participating municipalities. Any subsequent agreement shall be approved by ordinance after public hearings as provided in G.S. 16OA-31(c). 8. This Agreement shall not be binding beyond three miles of the primary corporate limits of a participating municipality, unless approved by the Union County Board of Commissioners. Provided, however, that an area where this Agreement is not binding because of failure of the Board of County Commissioners to approve it, shall become subject to this Agreement if

7 subsequent annexation brings it within three miles. The approval of a Board of County Commissioners shall be evidenced by a resolution adopted after a public hearing as pro vided in G.S. 16OA-58.24(c) and (e) and 16OA-31(c). 9. This Agreement may be terminated unilaterally by a participating municipality or a participating municipality may withdraw from this Agreement by repealing the ordinance which approved this Agreement and providing five years' written notice to the other participating municipality. Upon the expiration of the five-year period, this Agreement shall terminate. 10. From and after the effective date of this Agreement, neither the Town of Weddington nor the Village of Marvin may adopt an annexation ordinance as to all or any portion of an area in violation of this Agreement. 11. Nothing in this Agreement shall be construed to authorize the annexation of any area that is not otherwise subject to annexation under applicable law. 12. This writing contains the entire agreement between the participating municipalities. IN WITNESS WHEREOF, the mayors of the participating municipalities execute this Agreement, in duplicate, to become effective as provided in paragraph 4 above. This the day of, TOWN OF WEDDINGTON ATTEST: Town Clerk BY: Mayor APPROVED AS TO FORM: Town Attorney VILLAGE OF MARVIN ATTEST: Village Clerk BY: Mayor APPROVED AS TO FORM: Village Attorney

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