Local governments trying to solve housing riddle

With the housing shortage headed for crisis levels, Burke County and the City of Morganton are taking measures to address problems stymying would-be land developers.

Two of the three obstacles most often cited by builders are a lack of sewer, water, and electrical infrastructure, and zoning codes they see as restrictive.

Burke County is in the midst of a state-funded study that will assess the feasibility of expanding its water and sewer services to facilitate further expansion. 

The Town of Valdese has seen an uptick in development in recent years, although Planning and Zoning Director Larry Johnson said that success is due to what the town itself has to offer, rather than anything Valdese has done to accommodate developers.

Neither offers cash incentives for builders.

The City of Morganton does, however, in the form of its housing stimulus program. It assists developers with the cost of water and sewer infrastructure (capped at $5,000 per lot) as well as roadways (capped at $75,000 total). Developers pay back half the money when lots are sold. 

“It’s a good idea, but when you look at the cost of everything, those funds don’t go far, depending on the situation,” said Morganton City Manager Sally Sandy. “But I think it’s our attempt at making the gesture to partner with them in a substantial way and be respectful to our taxpayers and ratepayers who are footing the bill.”

In June, Morganton provided assistance to Carriage Park, LLC, a seven-home development off Shore Drive, via the stimulus program. Sandy added the city has worked with the county to court developers and has teamed up with realtors to identify and show properties with development potential.

Currently, Morganton is extending sewer service on Bost Road off U.S. 181, an area inside the city with large-scale development potential. Despite the fact some of the terrain is in low-lying areas, the former Quaker Meadows Golf Course, located in the U.S. 181/North Green Street corridor, could be a likely spot for future home sites.

“They’re putting sewer and water through there now, which will make it more attractive to a developer,” said realtor Polly Leadbetter of Engel and Volkers Foothills Lake James. “There’s a lot of flood plain on that land, but I think there’s enough usable for some developer to come along now that it has utilities.”

Developers say the city’s cooperative efforts are helpful.

“From an outsider looking in, it looked like the town was well-managed and they were trying,” said Dante Broadway, who is turning an old junior high downtown into apartments.

REVISITING RESTRICTIONS

Another obstacle developers often mention are the requirements and restrictions local governments place on new builds. 

Realtor Wendy Cato, Morganton's mayor pro tem, admitted the city has some tight restrictions, but she’s in favor of them because they’re necessary to maintain the tidy, planned, uniform look that attracts people to Morganton in the first place.

The city will revisit some of its zoning ordinances as part of the IMAGINE Morganton 2040 Strategic Land Use plan, which is expected to be approved by city council early this fall. 

Burke County Manager Epley said the county hopes to develop a similar strategic plan in the near future, utilizing the help of a consultant for the first time. He added many of the county’s ordinances are in desperate need of “modernization,” to make them more builder friendly.

An example he cited is a current policy that only allows home construction on lots of ½ acre or larger.

“You might get 20 houses on a 50-acre plot here, but you could get 50 on it down east,” said real estate agent Whitney Willey, whose husband is a builder.

Despite changes that might increase density, Epley said Burke County has no aspirations of becoming another Charlotte. 

But it can’t afford to become stagnant, either: “Growth and development is good when it’s in a controlled way and at a controlled pace,” he said.

Allen Curtis, President of the Burke Board of Realtors, agrees. He said he knows of one developer who wants to come to Morganton but can’t make it work because of “restrictions and zoning.”

“There’s got to be a balance where development is concerned,” Curtis said. “But no one wants this to become Asheville.” 

That balance is what the city is shooting for as well, and there are at least some signs the approach might be working. 

A promising project that would bring more than 60 townhouses to Meeting Street in downtown Morganton is in its preliminary stages. A tax-credit apartment complex is being planned for Independence Boulevard. Tru West LLC is working on bringing more than two dozen townhouses to Fletcher Street. There will be 41 apartments in the old junior high school building on College Street. Seven one-bedroom apartments are in the works for downtown as well.

Promising projects all, but the housing gap is still growing.

“It makes a dent, but take 67 from 1,600,” said Cato, referring to the 1,600-unit shortage identified in a study conducted seven years ago. “We’ve got to continue to look at bigger projects. We need large projects in order to fit the need.”

But large projects are few and far between. Encouraging developers to invest in them will be crucial for local governments in the years to come.