MEMO MEMO-19-0966

Meeting Date: September 19, 2019

Prepared By: Gary Vidmar

MEETING TYPE: Council Regular Meeting

TITLE: Memorandum of Understanding Between J Earp, LLC and the Town of Leland, NC.

PURPOSE: To consider a memorandum of understanding ("MOU") between J Earp, LLC and the
Town of Leland in connection with the installation of new public sewer infrastructure
and a petition for voluntary annexation of Parcel No. 0560005101 in Brunswick
County.

BACKGROUND: J Earp, LLC ("Earp") is the owner of Parcel No. 0560005101 on Old Town Creek Road
("Earp Property"), as shown on Exhibit A attached hereto. The Earp Property is in
Brunswick County and not presently in the Town of Leland corporate limits. The Earp
Property is comprised of approximately 287.18 acres. Earp has plans to develop the
Earp Property as a residential development with single family homes.

The Town of Leland is planning two projects to extend public sewer infrastructure
along Hwy. 17 from a location in Brunswick Forest to Old Town Creek Road. The first
project ("Lift Station #33 and Force Main") includes construction of a new sewer lift
station in Brunswick Forest and a force main that will extend from this lift station
northward to Hwy. 17, then eastward along the south side of Hwy. 17 and connecting
to an existing sewer main. The second sewer project ("Leland Sewer Expansion II")
will be designed and constructed in two phases. The first phase ("Sewer Expansion II
Phase 1") will extend sewer from the new Lift Station #33 in Brunswick Forest to a
new residential development on Hazel's Branch Road known as Bishops Ridge. The
second phase ("Sewer Expansion II Phase 2") will extend sewer from Bishops Ridge to
Old Town Creek Road. The Lift Station #33 and Force Main project and both phases of
the Leland Sewer Expansion II project are presently in the design stage.

SUMMARY: The Sewer Expansion II Phase 2 project will initially make sewer service available to
properties that are not presently served with public sewer between Bishops Ridge
and Old Town Creek Road including the Earp Tract.

Earp plans to develop the Earp Tract as a residential development with single family
homes primarily and will need public sewer service for the proposed development. It
is the Town’s policy to only provide new extensions of the Town’s water and sewer
services to properties outside of the Town’s corporate limits to those properties
whose owners have petitioned for the Town to annex the property into the Town.
Earp desires to submit a voluntary petition for annexation as a condition for receiving
sewer service from the Town.

The MOU provides that, upon submission of a complete and acceptable petition for
annexation into the Town by Earp, the Town will construct the Sewer Expansion II

Request for Action Page 1 of 24

 Phase 2 project and complete the project within 18 months of the Town's receipt of a
complete and acceptable annexation petition and annexation application.
Notwithstanding, the Town retains the right to either approve or deny the petition for
annexation.

SUPPORTING PLANS: The public street and utility improvements described herein are supported by the
2020 Master Plan in the following ways: (i) will provide for a diverse range of housing
ownership and building types; (ii) will encourage the development of land through a
coordinated system of neighborhoods; and (iii) will provide street connectivity
between neighborhoods.

FINANCIAL: None

REQUEST FOR ACTION: Staff recommends that Council approve the MOU.

Request for Action Page 2 of 24

 Exhibit A

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