Real Estate Land Use, Planning and Zoning Alert November 2010 Authors: William J. Brian, Jr. bill.brian@klgates.com 919.466.1261 R. Michael Birch, Jr. michael.birch@klgates.com 919.743.7314 Collin W. Brown collin.brown@klgates.com 704.331.7531 James L. Joyce jim.joyce@klgates.com 919.743.7336 K&L Gates includes lawyers practicing out of 36 offices located in North America, Europe, Asia and the Middle East, and represents numerous GLOBAL 500, FORTUNE 100, and FTSE 100 corporations, in addition to growth and middle market companies, entrepreneurs, capital market participants and public sector entities. For more information, visit www.klgates.com. Charlotte Area Local Governments Consider Opting Out of Permit Extension As the original extension period comes to an end, local governments in the Charlotte area are weighing whether to opt out of the additional year provided by the 2010 amendment to the Permit Extension Act of 2009 (“Act”). The Act extended the life of any state or local government land development approval current and valid between January 1, 2008 and December 31, 2010. During the 2010 legislative session, in recognition of the economic crisis affecting the real estate development industry, the General Assembly passed House Bill 683 (“HB 683”), increasing the length of the original extension period by one year, so that the new extension period will end on December 31, 2011. However, HB 683 allows local governments to opt out of this additional extension by passing a resolution. State agencies do not have this option. If a local government does opt out, the original extension period provided by the Act still applies, so the running of time for any valid permit issued by that local government would begin again after December 31, 2010. Although there is no deadline for opting out, local governments will likely make a decision to opt out before December 31, 2010. Through our involvement with Charlotte area local governments, and after speaking with various city and county officials, we have determined that many communities are in the process of deciding whether to opt out. Below is a summary of where some cities, towns, villages, and counties are in the process. Please note, because the government may act without notice, this information is subject to sudden change. Cabarrus County The matter has not appeared on the agendas of the planning board or of the Board of Commissioners. According to county planning officials, the County has no plans to pursue an opt out. Iredell County The County Board of Commissioners will consider opting out of the extension at its December 7, 2010 meeting. According to a county planning official, planning staff is meeting with inspections, health, and environmental health staff, and likely will recommend that the County not opt out. Lincoln County According to County Planning staff, Lincoln County chose not to opt out of the extension, as the County did not want to be perceived as discouraging development activity. Real Estate Land Use, Planning and Zoning Alert Mecklenburg County Mecklenburg County has considered opting out, but the matter has not appeared on the Board of Commissioners’ agenda and County staff report that the County has no plans to opt out. Union County The County Board of Commissioners considered and rejected a resolution to opt out of the extension at its October 18, 2010 meeting. City of Charlotte The matter has not appeared on the City Council’s agenda and staff has no plans to pursue a resolution opting out of the extension. City of Concord The issue of opting out of the permit extension has not appeared on the City Council agenda. Town of Cornelius According to Town officials, the Town of Cornelius will not opt out of the extension. Town of Davidson Although the Town Planning Department considered recommending that the Town opt out of the extension, planning staff has not made a recommendation to the Town Board and the Board has not discussed the issue. Town of Huntersville According to planning staff, the planning department is recommending that the Town not opt out of the extension. It has submitted a memorandum to that effect to the Town Board. The Town may nevertheless consider opting out at its December 6, 2010 meeting. Village of Marvin The Village Council voted to opt out of the extension at its November 9, 2010 meeting. Town of Matthews. The Town considered opting out of the extension, but has not taken any action to opt out. Town of Mint Hill Town planning staff has indicated that the Town will not take any action toward opting out of the extension. Town of Mooresville According to Town planning staff, the matter is being discussed by the town attorney and town manager, but staff has not yet issued a recommendation. Town of Pineville The Town considered opting out of the extension, but has not taken any action to opt out. Town of Waxhaw At its November 16, 2010 meeting, the Town Board of Commissioners adopted a resolution to opt out of the extension. Town of Weddington The Town staff drafted a resolution to opt out for the Town Council’s consideration, but the Council voted not to opt out of the extension. Almost all local government development approvals will be affected by a local government’s decision to opt out of the additional year extension. Because the initial extension period ends on December 31, 2010, many local governments will be making decisions in the next few weeks on whether to opt out. Because local governments can opt out without notifying the public or permit-holders, those with current entitlements should be paying very close attention to what decisions are made. For more information, please read the original Permit Extension Act of 2009, House Bill 683, and K&L Gates’ prior analysis of HB 683. November 2010 2 Real Estate Land Use, Planning and Zoning Alert Anchorage Austin Beijing Berlin Boston Charlotte Chicago Dallas Dubai Fort Worth Frankfurt Harrisburg Hong Kong London Los Angeles Miami Moscow Newark New York Orange County Palo Alto Paris Pittsburgh Portland Raleigh Research Triangle Park San Diego San Francisco Seattle Shanghai Singapore Spokane/Coeur d’Alene Taipei Tokyo Warsaw Washington, D.C. 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