Redevelopment Study-

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Division of Coastal Alanagement
REDEVELOPMENT STUDY
TARGET AREA: COMMERCIAL AND WATERFRONT AREA
OF ATLANTIC BEACH
APPROACH: BEACH ACCESS ELEMENT
This report was prepared by the
Town of Atlantic Beach Town Board
under study and recommendation of
Town Planning Board with the
technical assistance of Coastal
Consultants, Ltd. of Southern Pines, NC.

OPMENT STUDY
TARGET AREA: COMMERCIAL AND WATERFRONT AREA
OF ATLANTIC BEACH
APPROACH: BEACH ACCESS ELEMENT
This report was prepared by the Town
of Atlantic Beach Town Board under
study and recommendation of Town
Planning Board with the technical
assistance of Coastal Consultants,
Ltd. of Southern Pines, North Carolina.
The Preparation of this report was financed in part through a grant
provided by The North Carolina Coastal Management Program, through
funds provided by The Coastal Zone Management Act of 1972, as amended,
which is administered by The Office of Coastal Zone Management, Nation—
al Oceanic and Atmospheric Administration.

TABLE OF CONTENTS
I.
Formation of a Study Committee
5-11
II.
The Circle - Blighted?
12-22
III.
Existing Land Use and Property Map
23
IV.
Market Analysis
A. Institutional Demands
24-26
B. Recreation and Beach Access
29
Demand and Supply
C. Commercial
29-30
D. Convention Center
30-38
E. Parking and Open Space
38-39
F. Land Consumption and Demand Under Different
40-41
Patterns of Redevelopment
V.
Public Objectives
A. Policies From Land Use Plan
42
B. Objectives
42-44
C. Additional Beach Access Policies
44
VI.
Legal Alternatives
A. Econonic Development Commission
45-46
B. Redevelopment Commission
46-50
C. General Municipal Powers
51-52
D. Private Sector Control
52-53
E. Compapative Analysis
53-57
VII.
Alternative Shapes of Redevelopment Area
58-67
VIII.
Redevelopment Sketches
68
A. Total Project
1. Low Density
2. High Density
3. Elevated
4. Beach Access Facility
IX.
Financing the Project
A. Town Budget
69-70
B. Incremental.Revenue Analysis
71
C. Beach Access Facility
72-73
X.
Phasing the Project
74-77
XI.
List of Developers
78

' TABLE OF CONTENTS
FOR
BEACH ACCESS USER
The problem of beach access in Atlantic Beach -is totally interlinked with
the problem of redevelopment of the Circle. The beach access
user might want
to read
this report in this order, however:
A.
Policy for a Centralized Beach Access
44
B.
Existing Facilities (Parking)
28
C.
Problems With Existing Use/Facilities
1. Crime
17
'
2. Transportation Ingress and Movement
15
3. Lack of Broad Range in Class of Users
16
4. Poor Structural Condition of Building Adjacent
to Beach
'
(Safety, Fire Hazard)
14,16,21
D.
Existing Use Map
23
E.
Market Analysis of Demand for Beach Access on Bogus
Banks
'
to 1990
26,35
F.
Assumptions About Use by Day and Overnight Visitors
26
G.
Allowances for Overnight Visitors
27
H.
Supply
28
I.
Determination of Unmet Demand
26-27
J.
Interpreting Market Into Facilities
27-38
K.
Determining Land Necessary for Use
40
'
L.
Determining Methods to Achieve Acquisition of Land
45-57
M.
Determining Costs Associated With Acquisition and
Construction
58-68
' N.
Financing the Project
72-76
0.
Beach Access Related Policies
42-46
P.
1
Organizational Structure
5-9
11
11
11
1
11
11

11
44
1 regional waste disposal.
' 10. The Town shall adopt such structural and institutional measures as will
implement the policy of taking an active role in guiding redevelopment.
' Beach Access Policies
1. It is Town policy to concentrate the majority of beach access demand
in one area where it can significantly meet demand with the least interference
to private property owners and where adequate plans can be prepared to deal with
what would otherwise amount to an excessive burden on the transportation system
Iand municipal serivices.
2. It is Town policy to provide beach access for all income groups by re—
pairing the image of the principal beach access area so that it will once again
be used for family beach purposes and by the middle class.
3. It is Town policy to provide reasonable facilities both as regards
parking, bathhouse facilities and access to the beach for the handicapped.
' 4. It is Town policy that all beach access plans be carefully coordinated
with redevelopment plans for the Circle.

REDEVELOPMENT STUDY
TARGET AREA: COMMERCIAL AND WATERFRONT AREA
OF ATLANTIC BEACH
APPROACH: BEACH ACCESS ELEMENT
This report was prepared by the
Town of Atlantic Beach Town Board
under study and recommendation of
Town Planning Board with the
technical assistance of Coastal
Consultants, Ltd. of Southern Pines, NC.

INTRODUCTION
This report constitutes a redevelopment study of the Atlantic Beach
area known as the Circle or Triad. This area is essentially a commercial
and waterfront area. The purpose of the study is to determine whether
redevelopment is feasible, what role government should take in the
redevelopment, what alternatives may exist in redevelopment, and what
actions should be taken to implement this study. This study has attempted
to focus on the aspect of the public's needs for beach access and recreation
and the means by which the Town can use redevelopment to improve its
ability to meet these needs.
This is not a redevelopment study as the term is used in North
Carolina statutes in reference to the "redevelopment plan" of a Redevelopment
Commission. One of the purposes of this study is to determine if a Redevelop-
ment Commission is the most desiteable manner to accomplish the goals of
redevelopment as outlined in the Atlantic Beach Land Development Plan
prepared in 1980-81. However, it will be apparent to the reader that many
of the elements of a redevelopment plan, as developed by a Redevelopment
Commission, are fairly fully developed in this study.
This project was undertaken by the Town with a partial grant from the
North Carolina Department of Natural Resources and Community Development.

K
STRUCTURE OF THE STUDY
In October 1981 the Atlantic Beach Planning Board began work on the
Beach Access element of the Redevelopment Plan for the Town Circle. Efforts
were started via a well advertised and heavily attended public meeting on
the issue at the Town Hall. Coastal Consultants, Ltd. of Southern Pines
was retained to provide the Town with technical assistance.
At the October meeting the Planning Board developed a series of questions
it needed to have addressed in this study. These questions are set out
below and form the organization of this study.
Questions
(1) How should the landowners in the redevelopment area relate to the
Planning Board during this study?
(2) Can we state in more precise terms the reasons why the residents
of the Town consider the redevelopment area to be in need of redevelopment?
(3) Can we determine in a preliminary manner what types of market
demands exist in this area? What kind of spatial demands will these uses
require?
(4) What are the public objectives of redevelopment?
(5) What are the legal alternatives for accomplishing the objectives?
And, what are the pros and cons associated with each of these approaches?
(6) What is the ideal shape of the redevelopment area? What are
the relative alternative costs and impacts in various shapes?
(7) What alternatives exist for the redevelopment of the area, in
terms of land use and structures? What are the relative pros and cons of
these alternatives?

3
(8) What alternatives exist for implementing this project? What
kinds of costs and benefits are we likely to incur in phasing versus non —
phased effort?
(9) What methods exist for financing the project?
(10) Can we develop a list of potential developers and purchasers
for the area?
(10) What administrative structure should be developed to implement
the project? How will this cost be financed by the Town?

4
DEFINITION OF THE PRELIMINARY STUDY AREA
This project looks at four study areas. For purposes of clarity and
focus one areawas deemed to be more feasible preliminarily. This area
has therefore received more attention in the analysis. This area we have
referred to as the "preliminary study area." This in no way infers that
this area is the selected area of redevelopment. Furthermore, several
alternative areas were also studied, these areas are referred to as
alternative areas 1, 2, and 3. It is highly unlikely that any specific
area, as studied, will be selected as the ultimate study area. Furthermore,
any redevelopment plan may elect to not completely redevelop the entire
area selected for redevelopment. These perceptions are set out so that
the reader will not presume that decisions have been made affecting his
property as a result of the nature of the language selected in this report.
The terms and alternatives are merely set out as a means of allowing some
basis of comparison for alternatives that are being considered.
The preliminary study area is defined as that area from the western
side of Kinston Drive at Fort Macon Blvd., extended along the west side of
that drive to the mean high water mark on the ocean, then along the ocean
mean high water mark, or the sea wall whichever is furthest oceanward, to
a point 220 feet east of the east side of the alley extending East Drive to
the mean high water mark on the ocean, then along with a line from that
point and parallel to Kinston Avenue to the Fort Macon Blvd, then along
the south side of Fort Macon Blvd. to the beginning.

5
ROLE OF THE LANDOWNERS IN THE REDEVELOPMENT AREA
IN THE REDEVELOPMENT STUDY
The Town has assigned to the Planning Board the duty and responsibility
of recommending a course of action as regards redevelopment of the Circle.
One of the first issues raised was how the landowners in the redevelopment
area should relate to the Planning Board. The Planning Board determined
in the land use plan that the redevelopment of blighted areas was principally
a town interest. The conditions on the Circle affect the sound growth and
development of the Town. They contribute disproportionately to the crime
rate, the accident rate, to health problems, and to use by the public of
public facilities. They effect the delivery of emergency services and
contribute to the traffic problems throughout the Town. However, the
Planning Board considered it important to shape some role for the private
sector.
In terms of land and building values, it is possible to make some observations
about the relative interests of different groups in the redevelopment area.
First, we should note that these interestswill vary depending on which
redevelopment area is ultimately selected, so that what we must tentatively
do is discuss these interests in terms of the preliminary study area.
Second, we will have to assume that the relative interest is that of a percentage
of total market value for buildings and land. It has been argued that the
interest should only be that for land, or that the interest should be that
percentage of total acreage, but these arguments have been rejected.
Thus, in terms of total market value, the relative interests of the property
owners of the area are presented in the following table.

TABLE 1
LAND AND PROPERTY VALUES BY SECTORS
Land Use Sector Land Building
Commercial Sector
without motels
motels '
(with motels)
Residential Sector
$1,238,260. $950,610.
406,320. 490,640.
($1,663,180.)($1;441,250.)
$352,110. $488,380.
Total Value
$2,207,470.
896,960.
($3,104,430.)
$840,490.
a
Municipal Sector
Town Hall, Offices $71,330. $80,480. $151,810.
Boardwalk 427,700. 000. 427,700.
Streets 572,264. 211,867. 784,131.
(total except watertower)($1;071,294.) ($292,347.) ($1,363,641.)
b
Total All Sectors - $3,086,584. $2,221,977. $5,308,561.
I
The value of the water tower property has not been considered in
any of these calculations. This facility and the property on which it
is located has been considered a continuing use.
b
All values are 1980 Cartaret County tax values. Some adjustments
will be needed to equate these with 1982 market values. These values
do not reflect additions and improvements made since October 1981.

TABLE 2
RELATIVE OWNERSHIP IN PERCENTAGES OF
LAND AND PROPERTY VALUES BY SECTOR
Land Use Sector
Land
Building
All Property
Commercial Sector
without motels
37.5%
47.3%
4i,6•
motels
12.3
24.4
16.9
(total)
50.4%
71.7%
58.5%
Residential
10.7%
24.3%
15.8%
Municipal Sector
Town Hall, Offices
2.2%
4.0%
2.9%
Boardwalk
13.0
0.0
8.1
Streets c
23.8
0.0
14.8
(total)
38.9%
4.0%
25.7%
c
We note that the value of streets and roads will be removed in
later tables where it is assumed that the value of the new streets and
roads provided by the redevelopment will be equal to that of the present
streets and roads that are lost in redevelopment.

F
II
Thus, aggregating the interests of the various property owners on
the basis of total market value, we note that the aggregated groups are
as follows:
Commercial Sector Weighted Shares
Two tracts in the inner circle 1
All property owners along Boardwalk 1
Hardees and other commercial enterprises 31
Motels 1
Residential Sector
East of Circle
West of Circle
Municipal Sector 2
Thus, the Planning Board determined that representation of the private
sector and the market interests would be recognized on the basis of the
proportionate representation of that group to the entire group. The
Planning Board decided to specifically invite the private sector to
participate in a representative capacity in the deliberations of the
Planning Board on the redevelopment plan. These groups would be allowed
to be heard on their views and attitudes regarding the plans and studies,
however, they will have no vote in the decisions of the Planning Board.
A letter to this effect has been mailed by the Mayor to the property
owners in the preliminary study area. A copy of this letter is enclosed
on the next page.
0

E
LETTER TESTING RECEPTIVITY TO PRELIMINARY APPROACH
The following letter has been mailed to all property owners within the
area designated 11preliminary study area" so as to determine their broad
receptivity to the approach outlined above.
Dear Sir:
The Town of Atlantic Beach, through its Planning Board, is currently
examining the possibilities and options that may exist concerning the
redevelopment of the area known as the Circle. The Town has not determined
exactly what area will be involved in any planning for redevelopment, or
if such planning should come from the private or public sector. For
preliminary purposes we have decided to establish a fairly broad area.
Since your property has been identified as one of the properties in this
area, we are giving you notice of what we are doing and specifically
inviting you to participate in our deliberations. Please look for notices
in the local newspapers concerning when our meetings will be held. If
you are no longer the property owner, would you forward this letter to the
person to whom you have sold the property. If a long term lease exists
on the property, would you inform the lessee that you have been notified.
The Town has identified five interest groups with what appear to be
relative equal interests in terms of real property values (land and improve-
ments). These interests are the owners of the inner land area on the Circle
itself, the owners of the Pavillion, the owners of the motels adjacent to the
Circle, the owners of commercial establishments along the oceanfront and along
the Circle, and the owners of residential properties as far west as Kinston
Drive (or a similar line extended) and as far east as several hundred feet
from East Drive at the intersection of Fort Macon Blvd. (which is the northern
limit of the area). The Town feels that the various interests involved would
be most effectively represented if single spokesmen for the groups could be
identified. We welcome your participation in this process.
Sincerely yours,
Mayor Gary Plough

10
LIST OF LANDOWNERS
A list of landowners of tracts or parcels of land identified as being in
the preliminary study area include the following:
Commercial
Holloway, James
Barefoot, Boyce
Shelor, James
Atlantic B Super Markets
Mettrey, John M.
Bradshaw, Brooks
Dunn, W. G.
Davis, Kathleen
David Lee and Associates
Carraway, Linwood
Sherrill, J. Sr.
Kays, Wilma
Rippy, Harry
Cooper, A. B. Jr.
Sherrill, J. C. Jr.
Dixon, Daniel
J. W. Harper, Inc.
Brown, Moses L.
Hollowell, Alfred
A & J Investment
Hardee's
Motel
Gamble, Roland
' Patel, Ramish
Horton, S. A.
Creech, Tyson
Meeta Enterprises
Hollowell, Alfred
Residential
Nowell, Michael
Polzin and Ewald Investments
Travis, Daniel
Rains, Mina Gray
Starling, J. A.
Kilpatrick, Frank
Scott, Minturn
Zayton, John
Lee, David
Whitehurst, W. C.
' Weathers, A. R.
Whitehurst, Athleen

ii
(Residential landowners continued)
Whitehurst, W. C.
Sherrill, John Jr
Jones, J. W.
Sherrill, John .
Hollowell, Alfred
Preast, Dewy
Royal, Charles
Jordan, David
Moore, William
Compton, Walter
Morton, W. Z.
Raynor, N. G.
Schnibben, W. F.
Morton, W. Z.
Lee, William
Thorpe, Barbara
Cobb, Dorothy

12
REASONS WHY THE AREA IS IN NEED OF REDEVELOPMENT
In the 1981 Land Development Plan the Town of Atlantic Beach, following
the recommendations of the Town Planning Board, identified the Circle as one
of several areas that were in need of redevelopment. The Planning Board's
identification of this area was based on many factors, including but.not
limited to the effect that the area was having on crime and delinquency,
on health, on the transportation system, and the sound development of the
Town. As part of the land use plan's preparation, the Town conducted an
attitudinal survey of the residents and property owners. A preponderance
of those replying to the questionnaire directed comments calling upon the
Town to take action to eliminate the problems arising from the blighted
conditions on the Circle.
The North Carolina General Statutes present some general definitions
concerning what conditions would warrant redevelopment, in the context of
a Redevelopment Commission. It is worth considering these conditions, even
though the problem may be handled without such a structure, since it probably
represents the most restrictive situation. Accordingly the statutes set out
two different standards, one where the area is predominantly residential and
the other where it is predominantly non-residential. We might note that
the preliminary study area is predominantly non-residential, however, one
of the alternative areas considered would probably beyconsidered substantially
residential. In both instances the statutes require that the Planning Board
make a specific finding that the areas are "blighted."
A non-residential redevelopment area is an area in which there is a
predominance of buildings or improvements whose use is predominantly non-

I
13
1
residential and which, by reason of
(a) Dilapidation, deterioration, age or obsolescence of
buildings and other structures,
(b) Inadequate provisions for ventilation, light, air, sanitation,
or open spaces,
(c) Defective or inadequate street layout,
(d) Faulty lot layout in relation to size, adequacy, accessibility,
or usefulness,
i(e)
Tax or special assessment delinquency exceeding the fair value
of the property,
(f)
Unsanitary or unsafe conditions,
(g)
The existence of conditions which endanger life or property
by fire or other causes, or
(h)
Any combination of such factors
(1) Substantially impairs the sound growth of the community
(2) Has serious adverse effects on surrounding development,
and,
(3) Is detrimental to the public health, safety, morals, or
welfare.
N. C. G. S. 160A-503 (10)
Hence, North Carolina law requires that in order to find that a non-resid-
ential area is
in need of development, two or more of conditions (a) to (g)
must exist and
all the factors in (h) must exist, or all the conditions in
(a) to (g) must
exist. The assemblage of evidence concerning these factors
should probably
be undertaken by the Planning Board through public hearings
that would take
testimony of the police and fire chief, the building inspector,
the county sanitarian,
the CAMA permit officer, and the planners who assisted

14
preparing the land use plan. The later would be able to provide expert
testimony on opinions about the impairment of sound growth and adverse
effect on surrounding development.
By way of some preliminary comments, we might note that many communities,
confronting problems of determining whether an area is technically blighted
or in need of redevelopment, have approached the problems by setting up
standards to test the degree of blight. In this regard, the communities have
found that the standards in the building codes are extremely useful for
identifying the deviation from proper development. Anticipating that such
an approach might be considered, the building inspector and the fire chief
have appended a report on a selection of the structures and conditions in
the preliminary study area. (See Appendix A).
Several preliminary observations can be made concerning the application
of the standards to the preliminary study area:
(1) The buildings in the area are predominantly twenty to thirty
years of age. Only a few if any are flood proofed. Materials used in
construction are relatively cheap with poor life expectancies --cinder block,
wood, metal shed construction. The buildings lack adequate lighting, exits,
fire prevention systems --sprinklers, fire walls, etc. Most of the buildings
have been poorly maintained. The buildings are obsolete in terms of the uses
for which they are intended; furthermore, the use may itself be becoming obsolete.
(2) The majority of the buildings, especially those along the
Boardwalk, were built with low density concept that paid inadequate attention
to open space, set -ins and set -backs. The alleys for public access to the
beach appear to be encroached upon; also, their use for service vehicles
conflicts with dedicated uses. Much of the soils in this area have serious
limitations for on -lot sewage disposal systems. The problems frequently are

15
not related to health hazards in the immediate area above the ground, but
rather deal with the contamination of the aquifer.
(3) The street layout is one of the principal contributors to
the bottleneck at Fort Macon Blvd. and Morehead Avenue. Traffic volumes
during the summer months are double the capacity of these roads. Traffic
on the Circle does not move due to the number of persons who use the system
for sight-seeing in connection with the visitation of the bars. The police
chief reports that efforts to move traffic from the streets on the Circle
by detouring it to connecting streets only results in the cars returning
to the Circle at more frequent intervals. On street parking conflicts with
traffic movement. The lay -out of -the streets is inadequate in that all
of the traffic,which essentially enters the Circle with two lanes in each
direction, must eventually pass over the one lane street adjacent to the
major businesses on the Circle. Adjoining streets are too many, have steep
grades, and in two instances are relegated to private streets or alleys, and
have insufficient pavement widths. The right-of-ways of the streets are
below standards considering their use, so that buildings are on the street,
and there is little room for redesign. So that instead of 90 foot rights -of -
way, there are 55 foot, with minimal setback. Emergency vehicles are unable
to use the area to pass from one side of town to another, which is essential
considering the loss of response time due to the already overburdened traffic
conditions on Fort Macon Blvd. and Morehead Avenue. Police and fire vehicles
are also unable to reach the establishments along the Boardwalk within a
reasonable time by vehicle; so that in the past access has been by foot.
Inadequate layout of the residential area, small lot sizes and inadequate
setbacks, together with substandard streets, have prevented the upgrading
of local streets to collectors.

16
(4) Lots in both the residential and non-residential sectors are
predominantly small. Excluding the Pavillion, there are along the Boardwalk
some nine commercial lots with buildings, within 400 feet. Oceanfront lots
have access only through the alleys which are also service roads. The lots
were subdivided without consideration to adequate protection from flooding
and storms. At least three of the lots would be unuseable for their present
use if they had to comply with current state regulations dealing with erosion
and storm protection. Current uses of the Boardwalk are far below desireable
or marketable uses for commercial oceanfront properties in beach communities.
Access for service vehicles and emergency vehicles is extremely poor; for
practical purposes some lots are virtually inaccessible for fire, police,
solid waste, etc.
(5) The preliminary study area has the highest crime and accident
rate in the Town. Furthermore, the problems arising in the area have radiated
into the immediately adjoining neighborhoods. Public drunkenness, drugluse,
assaults in the Circle are an index to what is happening outside the Circle
in the immediately adjacent areas, particularly break-ins, destruction of
property, vandalism. (Tables on crime and accidents are presented on the
following pages.)
(6) The deteriorating conditions in the Circle has resulted in
deteriorating conditions in the immediately adjacent residential areas where
a predominance of the structures are in poor condition. The`poor image given
the Town as a result of the Circle and its mobile homes have resulted in a
lack of investment in the immediate area, a slower growth rate for the Town
than other similarly situated coastal communities, and a concentration of
that growth in peripheral areas.

17
TABLE 3
CRIME AND THE CIRCLE (1981)
Nature of Arrest
Crimes of Violence:
Murder
Rape
Robbery
Aggravated Assault
Simple Assault
Kidnapping
Crimes Involving Property:
Arson
Larceny
Larceny of an auto
Breaking and entering
Damage to property
Defraud of innkeeper
Other Crimes:
Drug possession and sale
Disorderly conduct
Public intoxication
Driving under the influence
Littering
Traffic offenses
Number
0
0
3
13
12
1
1
19
3
10
18
1
87
67
148
14
22
35
d
Note. The Circle for purposes of this table is restricted to
Zone 4 which does not include the residential areas in and arround
preliminary study area. Including these areas would significantly
increase the number of breaking and enterings and larcenies.
Public intoxications is cited in terms of detentions and not arrests.
The number of detentions reported is only a portion of the number
of persons detained or assisted. The source of data is from
arrest reports of the Town of Atlantic Beach.

18
TABLE 4
TRAFFIC ACCIDENTS (1976-1981)
Type Accident. Number in Circle Number in Town
Non Personal injury Accidents
Injury Accidents
Visible Injury
Incapacitating or Fatal

19
In the event that the redevelopment area were expanded to Raleigh
Avenue, then the area would take on a more residential appearance. The
preliminary study area had 33 commercial structures and 22 residential
units. In the expanded area; the number of residential structures would
increase to 54, while the commercial structures would only increase to
34. This would result in different standards being applied in order to
determine if the area were blighted. In this situation, it would be in
the best interests of the Town to treat the areas as two distinct redevelopment
areas, the immediate Circle area being non-residential and the peripery areas
being residential. According to North Carolina Statutes, a blighted residential
area is an area in which there is a predominance of buildings and which
(a) dilapidation, deterioration, age or obsolescence,
(b) inadequate provision for ventilation, light, air, sanitation
or open space,
(c) high density of population and overcrowding,
(d) unsanitary or unsafe conditions,
(e) existence of conditions which endanger life or property by
fire and other causes,
(f) or any combination of such factors
(1) impairs the sound growth of the community,
(2) is conducive to ill -health, transmission of disease,
infant mortality, juvenile delinquency and crime,
(3) is detrimental to the public health, safety, morals
or welfare.
N. C. G. S. 160A-503(2)
While the tests are somewhat similar the residential standard appears
more stringent than the non-residential one. Furthermore, while only 50%

20
of the structures in a non-residential area must meet the conditions or
standards, at least two-thirds of the buildings in the residential sector
must contribute to the blighted conditions. Generally speaking, the further
the building is from the Circle, the more apt the structure may not meet
the definition of blighted. The general condition of residential structures
in the area is fair to poor --although it appears that the tax assessor may
have been rather kind and generous in his assessments. (See Table on
Grade and Condition of Structures on the following page.)
In the event that the area were not determined to be blighted or a
rehabilitation area within the two presented standards and definitions, the
area could still be determined to be a "rehabilitation, conservation, and
reconditioning area" within the meaning of N. C. G. S. 160A-503(21).
Such an area is one that is in clear and present danger of becoming a
blighted area or a non-residential redevelopment area. In such an area,
only those structures that substantially contribute to the conditions are
subject to powers of eminent domain. Such a determination would prevent
any unitary plan for redevelopment. In order to avoid such a result the
area should be narrowly drawn to come within the definition of blighted areas.
It might be worth noting that the application of the definition and
standards concerning what constitutes blight has not been substantially
litigated. The trial courts may be according the municipalities a latitude
in applying the standards subject to typical administrative standards of
review.
In conclusion, the residents of the Town perceive that the Circle area is
blighted, deteriorated and in need of redevelopment. Some technical information
on conditions was presented to the Planning Board in the preparation of the
Land Development Plan, during which it determined that the area was in need of

21
TABLE 6
GRADE AND
CONDITION OF STRUCTURES IN THE
PRELIMINARY STUDY
AREA AND THE
ALTERNATIVE AREAS
Grade
of Residential Units.
Area
Average
Fair
Poor
Total
Preliminary Study Area
7
11
4
22
Study Area with portion
east of East Drive
3
4
4
11
eliminated
Only Circle and property
0
0
0
0
adjoining Boardwalk
Study area extended to
18
33
5
56
Raleigh Avenue

zz
' redevelopment. However, the precise limits of the area were not defined.
If the Town decides to pursue any course other than that of forming a
'
Redevelopment
Commission,
it would not be necessary to make formal findings
on blight or
the need for
redevelopment. If it decides to pursue a
Redevelopment
Commission,
such findings are necessary. Furthermore, the
proper means
to make such
findings are through public hearings and taking
of testimony. If the Town desires to pursue a single unitary plan of
' development,it is probably very important that the Town use caution in
' drawing the shape of the redevelopment area to insure that it will meet
the standard for blight and in need of redevelopment.

11EXISTING USES"
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11
24
11
11
11
PRELIMINARY MARKET ANALYSIS
In the event that the area were redeveloped, we would need to recognize
what types of demands exist at present and what types of demands may exist
or are likely to exist in the year 1990. Basically the needs can be divided
along the lines of land use, these uses being institutional (municipal
facilities and beach access), commercial and residential. Ancillary to
these uses are uses for parking and open space. As a basic principle we
can state that the market is the extent to which the demand for a facility
' or use is likely to exceed the capacity of existing facilities and uses.
In preparing this market analysis, the consultants used a variety of research
methods most of which will become apparent from the text.
' Institutional Uses.
Demands for institutional facilities in the later part of the 1980s
' will be essentially those caused by the expanding population in the Town
' and the anticipated obsolescence and elimination of existing structures,
and those caused from demands from beach access. The population of Atlantic
Beach has grown steadily during the past five years, although much of this
growth (the lion's share) has occurred on the periphery of the Town. The
' growth rate was estimated by the Land Development Plan to be between 3.85
' and 7.85 percent per year. (This is the population that is staying overnight
during the peak season for five or'more days.) The projected population for
' the Town, assuming reasonable trends in annexation, is estimated to be
approximately 26,000 people in 1990. From another perspective, the number
of new building permits is likely to exceed 200 per year in the later part
' of the 1980s.
As a result of this population increase and the nature of the development,
1

25
high density and multi -family, the Town will need more sophisticated fire
fighting equipment, a larger police force, more equipment space for both
police and fire, a building and planning department, meeting facilities
capable of accommodating larger crowds, and added administrative space.
The Town may need room to park buses and store recreational equipment.
The current site is not suitable for centrally accommodating these facilities.
Similarly situated communities in the northern part of the State have expanded
their facilities and space and begun planning for new complexes to house
anticipated structures. It seems obvious that Atlantic Beach, whose facilities
are much more inadequate —in terms of structural condition and space, will
need to do the same. The demands of a municipal complex, from a planning
perspective, include a town hall and administrative building, fire and police
and rescue squads, and an equipment yard. The Town Hall can share meeting
facilities with a commercial use. In terms of location, it is important that
it be located near a major parking area and not take up the most valuable land.
The equipment yard should be of sufficient size to handle the types of equip-
ment anticipated to be stored there. It should be tucked in between major
structures, such as hotels and town halls. It should be reasonably close
to the other municipal facilities. The fire, police and emergency vehicle
station needs to be located close to the major transportation network and
in close proximity to the most heavily developed and populated areas of the
Town. In total, 3 to 5 acres for buildings along Fort Macon Road at the
intersection of Morehead Avenue, along with 2 to 3 acres for an equipment yard
on some less valuable property nearby would be suitable for this use.
In addition to these municipal facilities, the Town is also anticipated
to address the beach access demands of its residents and day visitors from
the mainland. Based on a survey of existing access points and the limitations

26
of these areas to expand due to location, street width leading to the access
and/or neighboring uses, the consultants estimated that as much as 50% of the
1990 population will be without reasonable access to the ocean. If we were to
assume that 20% would seek access simultaneously and they they would arrive
at the public access points in cars of 3.5 persons, then 875 parking spaces
would be needed to handle the parking from overnight residents during the peak
periods of demand.
However, this is not the only group making beach access demands on the
Bogue Banks facilities. A second group consists of day visitors coming to the
coast from within a radius of 160 miles. Recreation and Park Consultants, Inc.,
in Ocean and Estuarine Recreation Access, a study prepared for Carteret County,
suggested that in the broader study area 2.1% of the population was at the
beach during peak periods and that this number was likely to double in the
next ten years. (A sampling of high school students showed that two—thirds
of the students spent 15 or more days at the beach involved in swimming and
sunbathing, and other ocean beach activites.)
So, if 4.2% of the 1990 population in the market area is anticipated to
be at the beach during the peak weekend, we could estimate that the total visitors
and residents will reach 136,000. Of these approximately 80,000 should be
accommodated in overnight housing on the Bogue Banks. The remainder will be
day visitors, heavily dependent on public beach facilities.
Of the communities and towns on the Bogue Banks, only Atlantic Beach has
a tradition of providing substantial public beach and parking for this visitor.
This policy is not expected to change substantially to 1990.
The peak demand for overnight residents and day visitors under the above
assumptions is 17,000 public beach and access users and 4,000 beach access
related parking spaces. (This assumes that 25% of the day visitors will seek
simultaneous access.) Both of these groups will place a:;strong demand for

27
bath houses and changing facilities. Assuming that LO% of the overnight
residents using public access not reasonably close to their houses, and
that 20% of the day visitors would seek to use the bathhouses at one time,
we would have a total demand of bathhouse facilities for 114,200 people.
Current beach access facilities are limited. The Town has the only
extensive public beach besides the Fort Macon State Park on the Bogue Banks.
The public beach extends for nearly 1000 linear feet along the Boardwalk
on the Circle. Two other public areas exist along the fishing piers;
however, the areas are more access points that access the visitors to
predominantly residential areas. Furthermore, the parking is limited to
under a hundred cars at each and must compete with other ocean access demands,
mostly fishing. Fort Macon State Park has the capacity of handling 480 cars;
although it also serves multiple uses, namely cultural -historic uses. Other
beach access points in the residential subdivisions are limited to the
residents of the subdivision in that public parking at the access points is
extremely limited or non-existent. The current capacity of the Circle is
reported to be approximately 515 parking spaces. (Two hundred of these are
for private commercial uses; the remaining spaces must also compete with
commercial uses.) Thus, the current facilities allowing for modest expansion
can handle approximately 1200 cars at one time (including Fort Macon State
Park), of which probably less than 600 are in connection with beach access
for ocean swimming and sunbathing. Matching supply with demand, we find
that in 1990 we will need an additional 2,800 parking spaces in Atlantic
Beach for this use.
Given the nature of the public beach, its 1000 foot length, its central
location, its tradition as a public beach and its notareity with the people
who live in the surrounding communities, and the areas commercial nature and

TABLE 6
PUBLIC AND PRIVATE PARKING AREAS
Nature of the Space Number of Spaces Provided
Parking decks or garages None
Along streets:
West Drive
Central Drive
East Drive
Atlantic Blvd.
Total public parking
Private parking areas:
Pavillion
Jolly Knave
Hardees
Total private parking
Total parking on circle
85
75
70
85
(315)
70
80
50
(200)
515

29
need to be redeveloped anyways, it seems that the Circle is the most logical
place to locate beach access facilities. Furthermore, the provision of these
facilities in one central location would be highly desireable.
Commercial Uses.
Future commercial demand is likely to be sensitive to the nature of
the socio-economic group that settles in the Town. The consultants are not
aware of any studies that have been made on the profile of the Town's seasonal
residents, either before 1975 or since then. Recent housing trends in the
Town have towards $50,000 condominium units, and away from mobile homes.
It seems likely that if this trend continues, that the Town's seasonal
residents will have a profile that is largely early retired and semi -retired
and young married couples without children. Economically, this group is
likely to be fairly well to do with incomes in excess of $50,000 per year.
The commercial demands of this group cannot be met by any of the businesses
operating on the Circle. The businesses of the Circle include bars, low
quality motels, t-shirt shops, beachware shops, and novelty stores. The
commercial demands of the future is for lounges, arts and crafts shops,
boutiques, galleries, and cultural facilities. The effects of this type
of new resident on the local community can be clearly seen in developments
on the northern Dare beaches, with such commercial areas as Sea Holly Square
in Kill Devil Hills.
Part of the existing problem is that the Circle's commercial sector
attracts the wrong kind of clientele. A clientele that clashes with the
developing socio-economic attitudes of the Town. The present clientele is
heavily lower classes, frequently military and high school students.
It seems unlikely that the present commercial sector will survive. One,
the market is declining. Two, a competing commercial sector is likely to

30
arise somewhere else in Town, or on the mainland, probably in Beaufort, to
accommodate this unmet demand. Third, it is very unlikely that the Circle
will evolve, due its present condition and reputation, and the unwillingness
of the private sector to make individual investments in the area.
Commercial Uses: Convention Center
The possibility of locating a convention center on the Bogue Banks is
mentioned in nearly all reports and plans dealing with the island. Perhaps
the earliest formal steps towards examining the feasibility of such a use
were made in the early 1970s. At that time the Economic Development
Commission of Carteret County was directed by the county to prepare an
analysis concerning -the potential benefits from such a use, a selection of
potential sites, and the potential for using federal or state grants and loans
to build the facility. As a result of the study, an application for funding
was filed to build only the convention center itself on the soundside; this
proposal was later rejected because of opposition from Pine Knoll Shores,
and anticipated aggravation to the transportation system. Another site was
selected on the mainland. The facility was scaled down. When completed the
facility will have meeting room space; however, the site is removed from the
majority of motels and other lodging in the area.
The principal method for projecting a market demand in the above study
for the Eastern Carolina Convention Center was an intricate poll of all the
possible civic, fraternal and profession organizations in North Carolina to
determine their existing use for convention facilities and how that use might
be changed in the event that a facility were located in North Carolina. The
survey discovered that conventions would prefer coastal sites for their meetings
because they insure the greatest attendance. The Regional Development
Institute in 1972 estimated that district, state, regional and national

31
demand for meetings resulted in 1,698 meetings, involving an attendance of
neatly 200,000 persons per year. Based on assumptions that are no longer
available, the Economic Development Commission for the County anticipated
that attendance would range from 20,000 in the first year of the facilities
use, to 195,000 in the tenth year of use. They anticipated attendance would
reach 75% of peak within five years. The spinoff benefits from the construction
of such a facility were substantial. They included benefits from increased
retail sales, from new jobs, from increased personal income and from
capital investment.
The International Association of Convention and Visitors Bureau projected
in 1974 that the average visitor spent $49.98 per day and stayed an average of
3.59 days. These expenditures were broken down into sector spending as
follows:
Expense
Accommodations
Restaurants
Retail
Amusement
Gas
Local and State tax
Percent
37.5
31.6
10.2
10.7
4.5
4.0
The East Carolina Convention Center was projected to produce $66 million
dollars of revenue (1974 dollars) in ten years. Based on data from the
Travel Development Section, of what was then the Department of Economic
Development for the State, the expenditure per travel dollar would result in
a $.34 in personal income. The Center would create 528 new jobs and would
generate $50 million dollars of new construction, which would generate an
additional 2,799 jobs. The personal income of the area would rise $37 million
dollars during the period and would generate $250,000 per year in local taxes.
Of course any type of study of this sort is highly sensitive to the
assumptions that are made in the model, and of course the model probably

32
needed more sensitivity to alterations in site location and the size of the
facility. Which is as much as noting that the alterations in the basic
design probably drastically affected the market assumptions. The assumptions
however are very important, not so much as to what it projects for the
facility being built, but for the market and positive spinoffs from the
construction of such a facility as it was originally designed.
As the reader can probably see from the above sketch, the market analysis
for the feasibility of the Center was rather sketchy and the emphasis was
shifted to local benefits. Market analysis to determine the feasibility of
convention facilities, especially where the facilities will be part and parcel
of a large hotel facility, are more prevalent to todays planning. Feasibility
studies were undertaken to determine the market for facilities in Myrtle Beach,
Sumpter and Columbia (South Carolina), and in Asheville, Raleigh, Winston-Salem,
Greensboro, Charlotte (North Carolina).

33
A sophisticated market study that would attract a major commercial
enterprise or use is not the purpose of this study. Such a report would be
premature at this time, and should follow only after the Town has decided to
pursue a particular redevelopment use. However, preliminary factors suggest
that the market probably exists for such a use. The market area for a
convention facility and major hotel extends to approximately a 200 mile
driving radius. Such an area includes some of the major growth areas in
the southeastern United States —areas incurring major population and industrial
growth. The number of users has probably risen substantially since the Center
undertook its evaluation. Furthermore, the number of organizations desiring
convention space has increased sharply during recent years. So that overall
demand is very high. Against this demand, we note that there is still a
premium on coastal facilities in the market, yet the number of coastally located
facilities in the southeastern United States has not increased to meet the
demand. In 1974, convention facilities were available in Virginia Beach and
Myrtle Beach, of which only the later was close enough to intersect in the
driving market area. Myrtle Beach expanded its facility in 1876;' Virginia
Beach has built an entirely new convention facility. North Carolina still
lacks a convention facility and hotel on the coast. Several motels in the
Wilmington area have capacity for moderate size meetings, but cannot handle
the demands of a convention with its requirement for 500 lodging rooms, 3 to 4
modest meeting rooms for 100 or more people, and a large dining and meeting
space for 3,000 people. The heavy demand for condominium space has perhaps
caused a market shift from motel use to condominiums in recent years, so that
existing lodging for use in conjunction with a convention facility has actually
decreased. Wilmington is studying the location of a facility, yet it lacks
the excellent road system that makes the Town of Atlantic Beach so attractive

34
to the market area, especially in the Piedmont. Future sites are still
predominantly outside the coastal area and not on the ocean. A selected
sample by the consultants indicated that a demand still exists for ocean
situated hotel and convention space in North Carolina. That demand is
currently being met by facilities in other states. (Tables of information
relevant to this discussion have been included in the following pages.)
Other Commercial Uses
The demand for other commercial uses, such as professional office space,
and other office uses will probably increase dramatically as the seasonal
population of the Town increases, as the period of seasonal use is extended
and as the typical profile of the Town evolves. Such uses are already
sizeable in tha beach communities on the northern North Carolina coast.
Uses such as supermarkets and other similar retail stores are probably
inappropriate for the redevelopment area, and better located along the
causeway.
Residential Uses.
Approximately 22 residential structures would be eliminated in the
preliminary study area in redevelopment. Substantial residential redevelopment
of this area would not recognize the high potential and demand for this land
for commercial uses. Some residential housing on the site would seem to be
preferred to accommodate the displacement. The current residential market
is for multi -family structures. Such uses have been demonstrated to offer
higher building quality per square foot per dollar than conventional units,
minimize the costs of land, and provide suitable means of waste disposal.
Higher densities generally recognize savings in the costs of services from
local government, while increasing the revenue yield per acre developed.

35
TABLE 7
PROJECTING VISITORS FROM POPULATION DATA
IN THE MARKET AREA
Carteret County
Population (1980)
37.100
Persons on Bogue Banks
7,420
during peak periods (1980)
Visitors per hundred
population (1980)
20.0
Growth rate for population
21%
(1980 - 1990)
Projected Population (1990)
44,900
Visitors per hundred
population (1990)
25.0
Visitors (1990)
8,980
160 mile radius
2,750,400
60,000
3,248,300
4.2
136,416
d
Source: Data and assumptions adopted and revised from information
prepared by Recreation and Park Consultants, Inc., Ocean and Estuarine
Recreation Access, p. 56 ff. (1979).

TABLE 9
CONVENTION AND HOTEL FACILITIES IN COASTAL AREA AND WITHIN REASONABLE DISTANCE OF N. C.
Location Name of Facility Year Built
Virginia Pavillion 1981
Beach Convention
Center
Lodging Year Built
Adjacent (1983)
Hotel
Planned
(1983)
Nearby motels
(6000 rooms)
Myrtle Myrtle Beach 1965 Nearby motels -
Beach Convention (Addition in (20,000 rooms)
Center 1976)
Meeting Space Parking.Market
75,000 sq. ft. 1,000
State
Regional
5,000 person
National
dining room
20 meeting rooms
with 800 person
capacity
55,000 sq. ft. 500
State
Regional
12 meeting rooms
Auditorium and
. Exhibiton Hall
f
Sources: Max Stone, Myrtle Beach Convention Center;
William Holland, Virginia Beach Pavillion Convention Center

W1
Parking and Open Space
Parking is development, not open space. The parking demands from the
various sectors as analyzed in this section may be expressed as follows:
Use Soaces Required
Institutional (employees, others) 100
Beach access (overnight) 750
Beach access (day visitors) 1925
Commercial shops, lounges, etc. 500
Commercial hotel -convention center 1200
Less: spaces with shared use 800
Total 3675
As a general rule of thumb, a parking space requires 200 square feet
for parking and turning, thus, if all the parking were provided without the
use of a parking garage, nearly 17 acres of land would be consumed in parking.
A five tier parking garage would reduce this acreage to between 3 and 4 acres.
In the coastal area, one of the largest unuseable spaces in any development
project is that space between the land elevation and mean flood elevation,
approximately 11 feet in Atlantic Beach. This requires that all buildings
be built 11 feet above sea level by the use of pilings. It is possible to
utilize the space between land elevation and flood elevation for "non -develop-
ment uses" under Coastal Area Management regulations. One such use for such
spaces is for parking. In essence, that area under the principal building
space of the site could be used as parking. This would be the equivalent
of creating a large parking area under a_large portion of the site (at least
10 to 15 acres of it, depending on how much other parking was provided.)
Parking as a use can be a revenue producer. Based on current facilities
operating on the beach and on data prepared for the Cape Carteret access area
in 1979, parking spaces in close proximity to the ocean could be marketable
at between $3.50 and $5.00 per half day. Based on full utilization for a

39
100 day season, such a facility could produce about $3 million dollars per
year in revenues. (Specific costs are discussed in a later part of this
study.)
As a general rule of thumb, streets and roads will consume about
30% of the surface area of a low density development, maybe as little as
10% of a high density development. It is possible by the use of an elevated
area of 15 acres or more, to almost totally eliminate the use of roads on
the upper plane. Road rights -of -way cost between $1 and $2 per lineal foot
for sixty foot right-of-way. Paving costs typically average about $.60
per square foot of paved area. Paving costs for the redevelopment area,
together with right-of-way costs, are typically born by the developer.
Nevertheless some infrastructure costs are inevitable as a result of meeting
public facilities that may anticipate the redevelopment.
Open space is traditionally defined as that area which is not being
used for development purposes, including buildings, streets and paved surfaces.
In addition, areas that are subject to development are traditionally excluded
from open spaces calculations; these areas are public and open by nature, and
include ocean hazard setback areas, public beaches, other setbacks, etc.
In high density development traditional standards require that 35% of the
land be left in open spaces uses. A much smaller amount is used in low density
development.
Sewage Treatment
Unless a public sewer system is approved and can be coordinated in timing
with redevelopment plans, it will be necessary to handle effluent from the
development by use of a regional package plant. Such a facility would probably
require about 4 to 5 acres of land.

TABLE 10
SUMMARY OF SPATIAL DEMANDS UNDER DIFFERENT
REDEVELOPMENT SCENARIOS
Land Use
Institutional buildings
Commercial- shops
Commercial -hotel
Convention center
Parking
Sewage Treatment
Open Space standard
Total
Land Consumed in Acres
Low Density High Density Elevated
5
3
3
5
(included
in hotel)
8
4
4
4
4
4
17
6
1
5
5
5
6
8
6
50
30
23
40

41
In conclusion, a low density development with hotels and commercial
buildings under 4 stories or levels and two respectively, and with parking
not elevated, would require the Town to either expand its area to take in
the adjacent residential area outside the preliminary study area, or
to pursue commercial redevelopment without a large hotel, or to forego
attempting to meet the demands of a public beach. Parking garages would
reduce the land consumption, yet interfere aesthetically with the modest
elevation of the commercial structures. High density developments can be
accommodated within the preliminary study area, with perhaps some minor
changes in typical uses, or with modest additions to the area. Elevated
design would maximize the amount of open space.

42
PUBLIC OBJECTIVES OF REDEVELOPMENT
The 1981 Atlantic Beach Land Development Plan stated three major
policies concerning beach access and redevelopment.
1. It is the Town's policy to promote, foster and encourage the
redevelopment of old, poorly designed, underutilized areas. Redevelopment
is preferred and deemed more important than the development of presently
undeveloped areas. (One of six areas specifically mentioned for redevelopment
was the Town Circle.)
2. It is the Town's policy to take an active supervisory role in all
future redevelopment projects. All projects are required to consider the
Town's public needs, especially for a sound street system and public access
to the beaches.
3. The Town will rely on its redevelopment plan to provide significant
beach access.
These policies must be read in conjunction with several other policies
of the Town which favor the protection of environmental features and the
provision of open space, and which favor development at high densities on
unconstrained lands with little significant environmental features, and
which favor the use of planned unit development. (See pages 70 to 105 of
the Land Development Plan.)
These policies have been more explicitly developed into the following
objectives to govern redevelopment of the Circle.
1. This area was designated in the Land Classification System as
Commercial Redevelopment, and Institutional. Redevelopment shall give a
priority to plans which will implement these uses.
2. Redevelopment project that will treat the area as one unit with

43
a unified, solitary plan of development are preferred over plans that will
see redevelopment on a lot by lot basis.
3. A redevelopment plan shall provide for a significant amount of open
space. A significant amount of space shall be at least 35% of the developable
area, as that term is used in the previous section.
4. A redevelopment plan shall provide substantial facilities to meet
public demands from the overnight seasonal visitor and the day visitor to
the year 1990. These facilities will include parking facilities for this
use only of at least 1,000 cars and preferably more; and beach house and
bathing facilities to accommodate 900 persons. Plans shall provide for
safe movement between the parking facilities and the Boardwalk.
5. A redevelopment plan will retain the Boardwalk, or a large portion
thereof, as a public beach to minimize conflicts between the private and
public sectors concerning use of the beach.
6. A redevelopment plan shall minimize the amount of road space, restrict
access from adjoining residential communities, but provide for an adequate
access for emergency vehicles between the north and south sectors of Town
without resort to Fort Macon Blvd.
7. A redevelopment plan shall reduce traffic congestion on the Circle
and the bottleneck at the intersection of the Circle with the major transportation
system.
8. A redevelopment plan shall provide for public uses that it displaces,
especially town hall, fire and police stations, equipment yards, and the like.
The relocation of municipal facilities shall give priority to the needs of
these facilities as stated in this study.
9. A redevelopment plan shall attempt to coordinate its plans with those

44
regional waste disposal.
10. The Town shall adopt such structural and institutional measures as
will implement the policy of taking an active role in guiding redevelopment.

45
LEGAL ALTERNATIVES FOR ADDRESSING THE PROBLEM
A number of organization alternatives exist for addressing this problem.
These include (1) leaving the problem entirely to the private sector,
(2) cooperating with the private sector to the extent allowed under the
general powers provided for municipalities under North Carolina law,
(3) cooperating with the private sector through an Economic Development
Commission, (4) cooperating with the private sector by a combination of
Economic Development Commission as to those areas not likely to be redeveloped
without government assistance and allowing the private sector to redevelop
the remainder without interference but with coordination, (5) redevelop
the area with a Redevelopment Commission, (6) redevelop only a part of the
area with a Redevelopment Commission, coordinating with the private sector
in their plans to redevelop the remainder of the area.
In order to determine which method is best for the Town of Atlantic
Beach, the Town will need to have an understanding the relative powers and
restrictions inherent in each organizational approach. The powers and
restrictions are amply set out in the North Carolina General Statutes to
which the reader is referred for more particular reference.
Economic Development Commission
N. C. G. S. 158-7.1 authorizes municipalities in the State to make
appropriations for the purpose of aiding and encouraging the location of
a commercial plants in or near the city which in the discretion of the
governing body of the city will increase the population, taxable property
agricultural industries and business prospects of the city. Any municipality
may create an Economic Development Commission. A Commission shall consist
of three to nine members named for terms and compensation fixed by the

46
municipality's governing body. In order to appropriate money for the
Economic Development Commission a municipality must first have approved
the Article in the General Statutes setting up such a Commission by a
majority of the registered voters, or by a petition in the case of municipalities
with less than 3,000 inhabitants. The amount appropriated by the municipality
for use of the Commission can not be less than .0001%, nore more than .001%
of the assessed valuation of the Town.
Once established the Economic Development Commission would have the
following powers and duties: (N. C. G. S. 158-13)
(1) Receive from the municipality an economic development program for
part or all of its area;
(2) Formulate projects for carrying out such economic development
program, through ecouragement of new busine$ and other activities of a
similar nature;
(3) Furnish advice and assistance to existing businesses and businesses
which may locate in the area; assist persons seeking to establish new businesses
and engage in related activities;
(4) Encourage the formation of private busines development corporations
or associations which may carry out such projects as rendering financial
assistance to businesses and furnishing advice and assistance to corporations
and associations.
These powers are so broadly stated that they should be able to encompass
such activities as commercial site planning, market analysis, etc.
Redevelopment Commission
N. C. G. S. 160A-504 authorizes municipalities in the State to create
redevelopment commissions for the public purpose of replanning blighted areas

47
and of holding and disposing of them in such manner that they shall become
available for economically and socially sound redevelopments. The
Redevelopment Commission is to consist of not less than five nor more than
nine members who must be residents of the Town. Members of the Commission
are appointed by the Mayor and Town Board and serve for terms of five years.
Members of the Commission are prohibited from acquiring any interest in the
property in the redevelopment area and from contracting with the prospective
redeveloper concerning the project.
The Commission may be established upon certification of a resolution
declaring the need for a Commission to operate in the Town. Once established
the Commission shall constitute a public body, corporate and politic,
exercising public and essential governmental powers, including those
necessary or appropriate to carry out and effectuate its specific powers.
These specific powers are as follows:
(1) Procure from Planning Commission the designation of areas in need of
redevelopment and its recommendation for such redevelopment;
(2) To cooperate with any government or municipality;
(3) To act as an agent of the State or federal government;
(4) To prepare and recommend redevelopment plans to the governing body
of the municipality; and to undertake and carry out redevelopment projects;
(S) To arrange and contract for the furnishing or repair of services,
priviliges, works, streets, roads, public utilities or other facilities in
connection with the redevelopment project;
(6) To purchase, obtain options upon, acquire by gift, grant, bequest,
devise, eminent domain or otherwise, any real or personal property or any
interest therein, together with any real improvements thereon, necessary or
incidental to the redevelopment project; to hold, clear or prepare for

M
redevelopment any such property; to sell, exchange, transfer, assign, subdivide,
retain for its own use, mortgage, pledge, hypothecate or otherwise encumber
or dispose of any real or personal property, either in part or as a whole;
to enter into contracts with redevelopers of property containing covenants,
restrictions and conditions regarding the use of such property for residential
and commercial (and recreational) purposes in accordance with the redevelopment
plan; to borrow money and issue bonds; to provide for insurance of any real
or personal property;
(7) To invest funds held in reserve consistent with State law;
(8) To borrow money, apply for and accept advances from public or
private bodies;
(9) To conduct examinations and investigations and to hear testimony;
to administer oaths and issue subpoenas;
(10) To make surveys, studies and plans necessary to carry out its purposes;
to enter into or upon land or buildings for purposes of tests, surveys, appraisals,
and preliminary studies and investigations;
(11) To make expenditures as may be necessary to carry out its purposes;
(12) To sue and be sued;
(13) To adopt a seal;
(14) To have perpetual succession;
(15) To contract;
(16) To make and amend and repeal bylaws, rules, regulations and resolutions;
(17) To make recommendations to government concerning actions that affect
its field of operation;
(18) To perform projects involving one or more contiguous or noncontiguous
redevelopment areas and on annual increments.

M
In order to form a redevelopment commission the Town must give public
notice of its intent to do so. It must further adopt a resolution finding
that blighted areas exist in the municipality and that the redevelopment
of such areas is necessary in the interest of the public health, safety,
morals, or welfare of the residents of the Town. Upon adoption of the
resolution, the Town will need to request a certificate of incorporation
for the Secretary of State. The definition of what constitutes a blighted
area is technical in nature although broad in application. It is set out
in N. C. G. S. 160A-503 (2) and (10). The standards have been set out
and tentatively applied in later sections of,this report.
A Redevelopment Commission is required to prepare a redevelopment plan
for any area certified by the Planning Commission to be a redevelopment area.
A redevelopment plan shall be sufficiently complete to indicate its relationship
to definite local objectives as to appropriate land uses, improved traffic,
public transportation, public utilities, recreational and community facilities
and other public improvements and the proposed land uses and building requirements
in the redevelopment project area. The Planning Commission's certification
must be in conformity with the comprehensive plan. The redevelopment plan
must contain the following elements:
(1) The boundary of the area and a map of existing uses
(2) A land use plan of the area showing proposed uses
(3) Standards of population densities, land coverage and building
intensities in the proposed redevelopment;
(4) A preliminary site plan of the area;
(5) A statement of the proposed changes if any in zoning ordinances and
maps;

50
(6) A statement of the proposed changes in street layours or street
levels;
(7) A statement of the estimated cost and method of financing redevelopment;
(S) A statement of continuing controls deemed necessary to effectuate
the plan;
(9) A statement of a feasible method proposed for the relocation of the
families displaced.
Upon completion of a redevelopment plan by the Redevelopment Commission
the Commission shall submit the same to the Planning Commission for its
review and recommendation, then finally to the governing body of the municipality.
The standard of review of the plan is set out in N. C. G. S. 160A-513(g) and
is as follows: (to) consider whether the proposed land uses and building.
requirements in the redevelopment project area are designed with the general
purpose of accomplishing, in conformance with the general plan, a coordinanted,
adjusted and harmonious development of the community and its environs, which
will in accordance with present and future needs promote health, safety, morals,
order, convenience, prosperity, and the general welfare, as well as efficiency
and economy in the process of development, including, among other things,
adequate provision for traffic, vehicular parking, the promotion of safety
from fire, panic and other dangers, adequate provision for light and air, the
promotion of the healthful and convenient distribution of population, the
provision of adequate transportation, water, sewerage and other public utilities,
schools, parks, recreational and community facilities and other public
requirements, the promotion of sound design and arrangements, the wise and
efficient expenditure of public funds, the prevention of the recurrence of
insanitary or unsafe dwelling accommodations, slums, or conditions or blight.

51
1
1
General Municipal Powers
Through a collection of other basic powers a municipality can in
essence carry out a redevelopment plan without creating a Redevelopment
Commission or even an Economic Development Commission. These powers are
basically as follows:
(1) Through N. C. G. S. a municipality may create a planning agency
with the power and duty to make studies within Town's jurisdiction,
to determine objectives and prepare and adopt plans, to develop policies
and administrative procedures and other means to carry out the plans;
and to perform other duties that the Council may direct.
(2) Through N. C. G. S. 160A-206 a municipality has the power to
impose taxes for the following purposes: (including among others)
convention centers, off-street parking, open space land, parks and
recreation, planning streets, water, sewer and solid wastes.
(3) Under N. C. G. S. 160A-194 a municipality may prohibit business
and entertainment inimical to the public health, welfare, safety, order
or convenience;
(4) Under N. C. G. S. 160A-193 a municipality may order the abatement
of public health nuisances;
(5) Pursuant to N. C. G. S. 160A-296, a municipality has the power
to establish and control streets, including closing existing streets and
opening new ones. The closing of streets are subject to a finding that
it is not contrary to the public interest and that no property owner will
be deprived of reasonable ingress and egress;
(6) Pursuant to N. C. G. S. 160A-301 a municipality may regulate off-
street parking and collect fees for use of facilities by the public. These
fees may be used to finance such facilities and may be used for other public

52
purposes. Under N. C. G. S. 160A-302, a municipality has the authority to
own, acquire, establish, regulate, operate, and control off-street parking
lots, parking garages, and other facilities for parking motor vehicles.
(7) Under N. C. G. S. 160A-353, a municipality has authority to
establish a system of recreation, to set aside land and buildings, to acquire
land and buildings for recreation, to construct and operate recreation centers
and appropriate funds for those purposes.
(8) Under N. C. G. S. 160A-381, a municipality can regulate uses and
densities (zoning) and address the siting of structures.
(9) Under N. C. G. S. 160A-174, a municipality may define, abate,
prohibit, regulate acts, ommissions or conditions detrimental to the health,
safety and welfare of its citizens and the peace and dignity of the city.
(10) Under N. C. G. S. 160A-426, a municipality may condemn unsafe
buildings and make orders for corrective action.
(11) Pursuant to N. C. G. S. 160A-241, a municipality has the power of
eminent domain in connection with a number of specific purposes, including
the opening of streets, the provision of parks and recreation facilities,
and the construction of town halls and firestations.
(12) Pursuant to N. C. G.'S. 160A-457, a municipality may purchase real
property which is for economic development or redevelopment.
Private Sector
The private sector has the power to establish a private profit or non-
profit corporation, including a real estate investment corporation. Such
a corporation could have authority to purchase the land or options on the
land in a specific area. The owners of the land could in fact be the owners
of the corporation in the same relationship that their land value may have

53
to total value, or any other arrangement suitable to the shareholders of the
corporation. The corporation could purchase the land or obtain options on
it. Landowners could benefit from the resale in proportion to their share of
the total property value or total land value.
Lastly, one entity, a corporation or private individuals, could attempt
to obtain options on all the land necessary for redevelopment in whatever
use he deems desireable.
Some Observations on Various Alternatives
As a general test, the municipality should take such measures as it
deems likely to effectuate a redevelopment, subject to the constraints of
the budget, the support of the people and the legality of the action.
The important question to begin with is what will the nature of the redevelop-
ment be? The uses contemplated in redevelopment and the density or style of
redevelopment have a tremendous impact on the amount of land necessary for
the project. The second question is addressed to what public goals and
objectives are to be attained in the project. This factor also enters into
the shape of the project and the vehicle for achieving redevelopment. If
we assume that the project is to proceed with the focus of hotel -convention
facility and beach access facilities, utilizing a high density, high-rise
concept of development, with 35% open space and parking for several thousand
cars; and, if we furthermore assume that the project will need to tackle
transportation problems, and provide for municipal improvements; then,
we can measure the varying structures by the degree thht they are likely to
produce results.

54
In order to implement our selected scenario, we would need a large
contiguous parcel of land in the hands of one or possibly two owners.
We would need the power to purchase land and property for public purposes,
such as recreation and open space; however, we would also need to have power
to purchase land for commercial purposes that are public only to the extent
that they improve land use,:transportation patterns, alleviate crime, and
increase taxes. We would need power to rearrange the road system in spite
of opposition of adjoining landowners. We would need long term continuity
and consistency so to ensure its implementation. We would need the power
to finance the purchase of the land, the design for redevelopment, the clearing
of the land, and the redevelopment itself. We need to have the power to
ensure that the project when implemented will accomplish public goals for
open space, the spatial arrangement of uses in terms of function, the
handling of parking, the access between two parts of Town for emergency
vehicles, and perhaps aesthetic considerations.
By matching our needs or powers list (and powers exist in the private
as well as public sector) with the authority of each vehicle and some
examination of how that authority might be exercised, we can determine the
vehicle that is most appropriate for the particular plan we are attempting
to implement. Of course, every vehicle carries its own problems and
limitations --as we will point out.
In order to attain the goal of a large tract of land in single or dual
ownership, we would have to rely in this instance on either the private
sector assembling such an area, or on a Redevelopment Commission doing the
same. The stumbling block for the private sector is the landowner who is
unwilling to sell, thus disturbing contiguity. The Redevelopment Commission

55
is limited to purchasing or condemning only that land area that complies
with the statutory definition of in need of redevelopment or blighted.
The Commission is theoretically insensitive to rising market values caused
by landowners discovering a redevelopment project in process, i. e. rising
land values from the purchase of options of adjoining or neighboring tracts
of land. An unwilling landowner could force the total defeat of the project,
or could cause substantial abandonment of the original goals of the project.
The power to purchase land for varying purposes differs with each
structure or vehicle. The private sector is unlimited in its ability to
act. The Redeveloment Commission has similar broad authority, provided it
is acting consistent with its redevelopment plan. The Economic Development
Commission can not exercise the power of eminent domain. The Town can
exercise such a power for the Commission and on its own behalf, however,
the power is limited to the following purposes: streets, parking areas for
public uses, recreation facilities, open space, abating nuisances. The Town can
buy land for redevelopment purposes, but it can not condemn land to sell
to the commercial sector for their use and benefit. The determination that
an area is in need of redevelopment is probably not synonymous with a determination
that an area is a nuisance in need of abatement.
The power to close and reopen roads, or rearrange, or eliminate the
road system is essentially public. The private sector must largely accept
the existing road network. The Town can open and close streets and roads
where the action is not contrary to the public interest and where the property
owners affected will not be deprived of reasonable ingress and egress.
The Redevelopment Commission has the same broad town power, without perhaps
the restriction that the access be reasonable (a lesser standard may apply.)

56
Access problems are more likely to arise in phasing. The ability to form
temporary solutions without the formality of opening and closing roads
pursuant to general statute is a strong advantage of the Redevelopment
Commission.
Any redevelopment plan for the -area will not be achieved over night.
The planning to implementation period may be from five to ten years in
length. It is important that the objectives and design of the project
not be subject to continuing restatement. The private sector has the
ability to provide shorter response times and the likelihood of more
continuity. Although corporate structure and resale by individuals can
frequently cause the reshaping of the general design. The Town has a shorter
continuity structure than other alternatives. Board members are elected for
two year terms and the total attitude of the Board may shift or reverse itself
with each election. In theory the Town is bound to its land use plan, however,
the plan is broad in applying its principles, and may be revised as necessary
to be consistent with changing attitudes. The Redevelopment Commission is
appointed to staggered five year terms, and where its actions do not proceed
from a bare majority voice can be expected to provide considerable continuity
for a long period of time.
The power to finance the elements of redevelopment parallels the powers
of purchase. The Town cannot fund the costs of clearing the land or the
redevelopment of the land —at least where the ultimate goal is redevelopment
The Town cannot build, own or operate a hotel. Neither the private sector
mrthe Redevelopment Commission is limited in this regard. However, they
are limited by the costs of money in the marketplace --the interest rates
on loans and bonds.

57
The private sector is largely disinterested in public goals except
where such goals may affect the marketability or profits from the development.
Public recreational opportunities may conflict with higher values the private
sector could make on hotel accommodations where access were more limited or
impossible. Transportation problems with local collectors are largely
irrelevant. Flow of vehicles and parking for access to the commercial uses
is important. Aesthetic considerations may conflict with costs of development.
The siting and location of public facilities will be relegated to the least
valuable lands. The Town's ability to shape development through its zoning
and subdivision regulations will require the Town to develop a PUD ordinance
for this type of use. This vehicle will still be limited in its ability to
address some considerations. A Redevelopment Commission has extremely broad
powers in redevelopment, including the exaction of restrictive covenants,
easements, vegetation conditions, and the like which are beyond the Town's
practical powers.
Assuming the statement of the scope of the project as stated on page 53
of this study, it appears that a Redevelopment Commission would be the best
vehicle for approaching this particular project. However, if we were to
alter the scope, nature and goals of the project, a different conclusion
may result.

I!
58
ALTERNATIVE SHAPES OF THE
Early in this study, we noted that the consultants preliminarily reviewed
four study areas before focusing on one area for more intensive review.
These four areas are as follows:
Area 1. The preliminary study area, roughly Kinston Avenue
extended to the Ocean,;:east to several hundred feet east of
East Drive, then to Fort Macon Blvd.
Area 2. The preliminary study area, less those properties
east of East Drive.
Area 3. The preliminary study area, less those areas east of
East Drive and west of West Drive.
Area 4. The preliminary study area, plus those properties
west of Kinston Avenue to Raleigh Avenue.
For purposes of presenting information on costs, the report utilizes
data assembled by the Carteret County Tax Office. The County has recently
undertaken reevaluation of all structures in Atlantic Beach. All property
has been evaluated using a uniform system of evaluation designed to estimate
fair market value for the base year of 1979. Since 1979 the costs of money,
of inflation, and the probable appreciation of land value have probably
increased the land value by about 25%. Building values on the other hand
have depreciated. In order to avoid an obfuscation of appraised values,
we have avoided the restatement of these values in 1982 dollars. Therefore,
all values are stated in this section in 1979 dollars.
In evaluating the costs of redevelopment, we have assumed that neither

59
the Boardwalk, nor the watersystem property will be redeveloped. The
Boardwalk is in a State non -development area (C. A. M. A. setback area).
The costs of maintaining the area is a municipal expense. The public
use of the area does not preclude private use. Furthermore, we can
expect the costs of the streets and roads before development will equal
in value the costs of these uses after development. The costs of
existing improvements may be lost, or the replacement costs born by the
private sector and the public sector in proportion to public and private
purposes in redesign. We can expect that the Town would be willing to
trade its other existing properties for sufficient land for the same
purposes in the redevelopment.
Thus, the costs of redevelopment to the Town will at least be equal
to the costs of the remaining useful life in the buildings and improvements
lost by redevelopment. This cost is estimated by $80,480, which is the
value of the buildings, however, this amount may have to be increased to
reflect loss value of street and utility improvements.
A profile of the costs of acquisition of the four areas is presented
in the following tables.

rn
TABLE
11
ESTIMATED COSTS OF
ACQUISITION
($1979)
FOR AREA 1
Costs
Land Use
Land
Building
Total Value
Commercial Non -Motel
$1,238,260
$ 950,610
$2,188,870
Commercial Motel
406,320
490,640
896,960
Residential
352,110
488,380
840,490
Total
$1,996,690
$1,929,630
$3,926,320
TABLE 12
PERCENTAGE COSTS OF ACQUISITION
Land Use Land Building Total Value
Commercial Non -Motel 62.0 49.3 55.7
Commercial Motel 20.3 25.4 22.8
Residential 17.6 25.3 21.4

61
TABLE
13
ESTIMATED COSTS
OF ACQUISITION
($1979)
FOR AREA 2
Costs
Land Use
Land
Building
Total Value
Commercial Non -Motel
$1,076,060
$ 856,290
$1,932,350
Commercial Motel
210,880
154,060
364,940
Residential
175,500
227,480
402,980
Total
$1,462,440
$1,237,830
$2,700,270
TABLE 14
PERCENTAGE COSTS OF ACQUISITION
Land Use Land Building Total Value
Commercial Non -Motel 73.6 69.2 71.6
Commercial Motel 14.4 12.4 13.5
Residential 12.0 18.4 14.9

62
TABLE
15
ESTIMATED COSTS OF
ACQUISITION
($1979)
FOR AREA 3
Costs
Land Use
Land
Building
Total Value
Commercial Non -Motel
$ 900,580
$ 677,860
$1,578,440
Commercial Motel
77,930
28,380
106,310
Residential
000
000
000
Total
$ 978,510
$ 706,240
$1,684,750 .
TABLE 16
PERCENTAGE COSTS OF ACQUISITION
Land Use Land Building Total Value
Commercial Non -Motel 92.0 96.0 93.7
Commercial Motel 8.0 4.0 6.3
Residential 0.0 0.0 0.0

63
TABLE 17
ESTIMATED COSTS OF ACQUISITION
($1979)
FOR AREA
4
Costs
Land Use
Land
Building
Total Value
Commercial Non -Motel
$1,238,260
$1,010,810
$2,249,070
Commercial Motel
759,540
669,450
1,428,990
Residential
783,270
1,075,330
1,858,600
Institutional: Church
13,020
15,790
28,810
Total
$2,794,090
$2,771,380
$5,565,470
TABLE 18
PERCENTAGE
COSTS OF ACQUISITION
Land Use
Land
Building
Total Value
Commercial Non -Motel
44.3
36.5
40.4
Commercial Motel
27.2
24.2
25.7
Residential
28.0
38.8
33.4
Institutional: Church
0.5
0.6
0.5

64
TABLE 19
COMPARISON OF AREAS BY ACREAGE IN USE
Land Use
Area 1
Area 2
Area 3
Area 4
Commercial: Non -Motel
8.2
7.4
5.1
8.7
Commercial Motel
2.1
.7
.0
4.6
Residential
4.6
2.6
.0
11.0
Institutional: Church
.0
.0
.0
.3
Municipal
13.0
9.5
4.2
15.6
Total
28.1
20.1
9.3
40.1

65
Area
1
2
3
4
Area
1
2
3
4
TABLE 20
COMPOSITE COSTS AND ACREAGE TABLE
FOR ALL FOUR AREAS
F
Acreage Total Acquisition Cost Non -recoverable Cost
28.1 $3,926,320 $2,010,110
20.1 2,700,270 1,318,310
9.3 1,684,750 706,240
40.1 5,565,470 2,851,860
Includes all building value in the sector including municipal loss.
TABLE 21
DWELLING UNITS DISPLACED PER AREA
Motel Units
108
52
0
(See text comment)
Residential Units
22
11
0
55

M.-
Some Interpretation of the Data
The impacts from development are sensitive to the area selected to
be developed. Broadly speaking these impacts include costs of acquisition,
costs lost in redevelopment, nature of the redevelopment and with that
the problems that can be addressed through redevelopment, housing and
lodging displacement.
When we substitute Area 2 for Area 1, we decrease our total costs of
acquisition by $1.2 million dollars, and our waste by $.7 million, however,
we have 8 less acres to work with, and we will be heavily constrained in
dealing with transportation problems.(those on the Circle, those involving
feeder streets, and those at the intersection to the major transportation
system.)
When we substitute Area 3 for Area 1, we focus on the inner circle
and the Boardwalk. We decrease our total costs of acquisition by $2.2 million,
and our waste by $1.3 million, however, we have 19 less acres to work with,
the options for redevelopment are severly limited, and we are forced to
retain the existing transportation network.
When we substitute Area 4 for Area 1, we increase our acquisition costs
by $1.6 million, and our waste by $2.8 million. We increase our land area
by 12 acres. We have considerable flexibility in design for redevelopment.
However, we displace 55 residences, 33 more than in the original site area.
We would need to analyze the residential housing to determine if 66% of the
units meet the standards for blighted structures to be able to use a
Redevelopment Commission.

67
We might note that the residential housing is fairly uniform in condition
throughout the study areas. Building value is appraised at $19,500 to
$22,000. A typical residential lot is 5,000 square feet, with a 40 to 50
foot lot width. This presumption can be applied to most of the adjoining
area. However, we should now that it appears that conditions improve in
direct relation to the distance from the Circle.
Also, it is possible to redraw Area 4 to assume that the major commercial
uses, will not be purchased or altered in redevelopment. In this case, the
costs of the area are decreased by $.53 million, the waste is decreased by
$.24 million. However, we still have displaced 33 more residential units.
In essence, it becomes a $5.0 million dollar project.

M
ALTERNATIVE REDEVELOPMENTS
In the attached sketches the consultants have prepared different
approaches to redevelopment. The redevelopment sketches can be described
as low density, low profile redevelopment; a high -density, high rise
redevelopment; a elevated high -density, high rise development.
(See sketches for details)

II
69
r
FINANCING THE PROJECT AS A PUBLIC EXPENSE
The financing of a redevelopment project can be a major expense.
The Town has several alternatives concerning financing, one alternative
is to finance that part of the project which will bring in revenues capable
of implementing the remainder of the project. Another alternative is
to undertake the entire project at one time, and retire the bonds and
M debts upon reconstruction.
In any event, we need to have an appreciation for the ability of the
Town to withstand the expense. This ability to pay is both economic and
attitudinal. From an economic point of view, the Town's 1981 tax base
was calculated at $85.6 million dollars. With annexation, this tax base
should reach over $100 million. The annual average increase in assessed
valuation ($1979) should increase by $6.0 million per year during the early
1980s. The current assessment rate for the general fund is $.45 per hundred
dollars. This has the effect of raising $385,000 in revenue (about 55% of
the total budget for the Town.)
Because the Town has only a very small outstanding obligation on bonds,
the Town's legal capacity for indebtedness is approximately $6.8 million
dollars. This is the amount that cannot be exceeded by the issuance of
bonds. This amount is likely to increase yearly, so that this year it will
exceed $8.0 million dollars.
A quick picture of the Town's revenue is capable of being drawn from
the following table.

70
TABLE 22
ATLANTIC BEACH TOWN REVENUE 1981
Source: General
1981 Ad Valorem Taxes
Local Sales tax
Refuse Collection fees
ABC Revenue
Franchise tax
Fire District revenue
Intangibles tax
Past due taxes
Beer and wine tax
Source• Other
Revenue Sharing
Powell Bill funds
Building permits
Amount
385,289.
74,300.
50,000.
30,000.
28,500.
16,300.
10,800.
10,000.
5,295.
21,626.
22,143.
31,000.

71
Assuming that the Town were to decide to complete the entire project
from the purchase of land to the demolition of the buildings at one time
(not in stages or phases), then the total costs of the project for the
preliminary study area are likely to be approximately $5.5 (allowing for
$1982 dollars and allowing for demolition and land preparation).
If this cost were financed through the sale bonds which would mature in
twenty-five years and carry a 10% yield on investment per year, then
the annual costs of amortizing these bonds equals $605,924. This is
$110,168 for each million dollars financed in this manner. The burden
of meeting this cost would fall on the general revenue. Assuming that
the increase is borne totally by the increase in ad valorem taxes alone,
then the tax rate would have to be increased by 12.8 cents per million
financed. This would mean that taxes would have to raised $.64 to pay for
the project until such time as a purchaser was found and sale completed.
Upon completion of the project, the tax base should increase between
$35 to $50 million dollars, which will have the net effect of decreasing
current level of taxes by 41%. This figure would not take into account
revenue generated by local sales taxes and from the sale of alcoholic
beverages, which could be substantial.
An alternative to above financing method is to implement the project
in stages, implementing those stages first which are most likely to generate
immediate revenue. Furthermore, the Town can attempt to utilize non -local
sources of revenue to accomplish some of the ultimate goals. Phasing will
be discussed in more detail in the next section. But let us assume that
the Town were to phase the project, and that it decided to build a beach
access facility (bath houses and parking) as its first undertaking.

72
In order to accomplish this phase of the project, we need to assume
something about the nature of the facility. Suppose the facility included
a parking facility capable of handling 250 cars and which was situated
proximately to the bathhouse which was on the oceanfront, along the
Boardwalk. Let us assume that the bathhouse will require the taking of
several hundred feet wide strip of land, which is already developed, along
the Boardwalk; that the parking facility can be placed on relatively undeveloped
land that is landward of the bathhouse area. Let us assume that we can
do the project without major costs in rerouting the existing transportation
system. Costs for the first phase, or the above project might look something
like this:
Land Acquisition $ 400,000
Land Preparation 30,000
Bathhouse 70,000
Parking Garage 500,000
Total costs $1,000,000
Let us assume that this garage and bathhouse reaches full utilization
in the first year. Furthermore that the fees generated for the space are
$10 per day per parking space and $2 per day for use of the bathhouse.
Revenues generated for the facility might look like this:
Parking
Bathhouse
Total revenue
$ 250,000
200,000
$ 450,000 (per year)
! These costs would have to be adjusted to reflect the costs of operations:
Salaries and burden
$ 16,800
Utilities
10,000
$ 26,800
(per
year)
Net revenue
$ 423,200
(per
year)
If we were to pay for this facility through
a bond
issuance, and
amortization payments from the general fund,
we would have
to
pay an
additional $110,000 from our net profits to
amortize the
bond;
however,

73
this would still leave us with $300,000 in net revenue which could be used
finance future phases of the project.
The figures are presented to show the reader how to look at the phasing
of a project. Different assumptions can be applied and adjusted to reflect
the reality of the enterprise. Generally speaking, you should implement
which
as a first phase that part of the project will stimulate immediate revenues
and which will act as a stimulant to the future development of the project.
Another alternative is to consider to what extent the project may be
able to take advantage of federal and State monies. For example, the
State and federal government both finance beach access projects. Recently
the State appropriated $1 million dollars to build beach access facilities
on each of the barrier islands in the State. The Bureau of Outdoor
Recreation finances recreation projects frequently at 50% financing.
Urban Development Action Grants can be utilized in many instances to clear
land for redevelopment. Other programs offer grants and low interest loans.
If the Town received 50% funding for this project, then the annual overhead
based on the above data would amount to about $80,000, which could be paid
for at 20% utilization of the facility.

74
PHASING THE PROJECT
This project could be built in phases. If so, the projects implementation
would look something like the following. Costs and revenues provided are
gross estimates. This project would need to be carefully priced in the event
that this alternative were selected.
Phase I.
1. Plan, design and implement the beach access facility consisting of
two -deck parking and bathhouse (parking for 250). Purchase or condemn necessary
property to implement this portion of project.
2. Organize and staff Redevelopment Commission. Prepare formal report,
hold public hearings, develop a redevelopment plan.
Total Costs Revenues Balance
Costs Year 1
(1) $1,150,000 $ 275,000 (1) $ 400,000 $ 85,000
(2) 40,000 40,000
$ 315,000
Phase II.
1. Buy and condemn land. Legal actions.
2. Operate bathhouse and parking in beach access facility #1 (begun in
Phase I.) Continue activities of Redevelopment Commission.
3. Purchase options on land.
Total Costs Revenues Balance
Costs Year 2
(1) $ 50,000 $ 50,000 (1) $400,000 $ 40,000
(2) 250,000 250,000 (*) 85,000
(3) 20,000 20,000

75
Phase III.
#1
1.
Complete
Court actions on condemnation; purchase land
2.
Continue
to operate bathhouse and parking in beach access
facility
3. Through Redevelopment Commission identify developers for project.
4. Begin land clearance.
Total Costs Revenues
Costs Year 3
(1) $100,000 $100,000 $
(2) -- 400,000
(3) 20,000 20,000 (*) 40,000
(4)(1) $6,000,000 725,000
Phase IV.
1. Complete land clearance
Balance
($405,000)
2. Plan, design and bgin development of commercial development along
oceanfront.
3. Identify developer for motel and convention center; sale of land for
this purpose; guide design and development of use and land.
4. Design and layout key portions of road system in Circle.
5. Plan and design second beach access facility.
Total Costs Revenues Balance
Costs Year 4
(1) $ 500,000 $ 500,000 (1) $ 400,000 ($680,000)
(2)(3)(4) 50,000 50,000 (*) (405,000)
(5) 125,000 125,000

76
Phase V.
(1) Continue guidance of project from Redevelopment Commission.
(2) Build beach access facility #2
(3) Build road -street system
Total
Costs
Revenues Balance
Costs
Year 5
(1) $ 20,000
$ 20,000
(1) $ 800,000 $ (50,000)
(2) 600,000
600,000
(BA I 6 II)
(3) 250,000
250,000
(2) 700,000
(Tax increase)
(*) (680,000)
Phase VI.
(1) Complete elevated parking deck in areas not covered by motel and
and convention or other commercial facility
(2) Plan and design municipal complex
(3) Guide development of remaining lands as permanent open space,
as commercial retail and office sites, as townhouse, etc.
(4) Build remaining street network.
Total Costs Revenues Balance
Costs Year 6
(1) $ 500,000 $ 500,000 (1) $ 800,000 $ 43,000
(2) 300,000 300,000 (2) 680,000
(3) 250,000 250,000
(4) Comm 40,000 40,000

Phase VII.
(1) Complete design and build municipal complex
(2) Landscape and improve remaining open space.
(3) Complete tasks of Commission
Total Costs Costs Revenue Balance
Year 7
(1) $4,000,000 500,000 (1) $ 500,000 $ 773,000
(2) 100,000 100,000 (2) 850,000
(3) 20,000 20,000 M 43,000
Phase VIII.
(1) Continue operations.
(a) Operate beach access facilities I & II. Continue to pay
costs on I.
(b) Continue revenue from ad valorem taxes and sales taxes.
(c) Pay amortized costs on municipal complex.
Annualized 20 year costs
$125,000
500,000
($625,000)
Annualized 20 year revenues
$800,000
850,000
($1,650,000)
77

W
LIST OF REDEVELOPERS
(For list of developers of conventions facilities, see
Hotel and Motel Red Book,
American Hotel and Motel Association
888 7th Avenue
New York, New York 10019
Contacts during this project were made with Sheraton and Hilton.)

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