2011 - County's Economic Development Advisory Board Sees Early Warning Signs
/Currituck County Economic Development Advisory Board (EDAB)
EDAB - COBX 2030 - Meeting Report
Feb 10, 2011
Next Meeting February 19, 2011 at the Corolla Library
By mid-March the EDAB would like to have a shared vision of COBX sustainable economic development goals, based on:
What makes our area special ?
To residents
To tourists
Understanding the factors drive the economy ?
What should COBX look like in the future ?
What are the enablers of this vision ?
What are the threats to this vision ?
About 16 Corolla community leaders attended the two hour session and provided verbal and written input. In addition verbal and written inputs was received from several others who were unable to attend this session.
First order of business was to review the background information provided in the .pdf file COBX Vision 2030 v4.ppt.pdf. Several key points were made:
LAND USE
In Corolla it was noted that 61% of plated lots have already been developed and that when all lots are developed there could be 1.6 times the people as there are today assuming that new development is at the same density and existing homes. If new development and remodels build at a higher density then the population could be significantly larger.
In the 4WD area only 611 of 3327 lots have been developed which implies that when fully developed at current densities this could be 5.4 times as many people, more if bedroom densities are higher than current.
We noted that building growth has slowed over the past few years. The most common home size today is 5 bedrooms with an average size between five and six bedrooms.
MARKET RESEARCH
The 2007 Tourism department survey data was reviewed. It was noted that the full study is available online at www.visitcurritcuck.com.
The findings of the study were generally consistent with the views of the group. The factors that tourists value are our unspoiled environment, uncrowded beaches, natural features of sand, sound and ocean including the wild horses and birds. In addition the unique cultural attractions of the Whalehead Club, the Lighthouse, Corolla village and the Wildlife Education Center. It was noted that tourist-renters who value these attractions should be our target market and that investment decisions should consider how best to protect and build on these assets to maintain a high level of attractiveness.
It was noted that more information on this would be useful.
LOCAL ECONOMY
It was first noted that through a combination of real estate (ad valorem), occupancy and sales taxes COBX accounts for about 2/3 of all county tax revenues. Most of COBX taxes come from rental properties owned by investors who live outside of the County.
The conclusion is that the primary economic value of COBX is in its real estate. Businesses other than the rental business do not directly contribute significantly to the total economic value, although it was agreed that the mix and quality of their service offerings can be an important factor in the vacation experience. It was noted that the ability to receive rents was a very important factor in the market’s valuation of a property’s worth.
The seasonal dependence of the rental income was discussed as a fact of life given our climate. A few noted that the area is probably at saturation in the middle of the summer, where the thought is that our renters are dominated by families with school age children. In the May and September months it was noted by retailers that the renter segment changes to families with pre-school kids and empty nesters.
There was a general sense that Tourism should focus on stimulating demand in May and September and then later in the fall with the sponsor of creative activities (in conjunction with local businesses) tied to the interests of new market segments as noted in the tables below.
There were a couple of anomalies noted in the houses by rental company and the lots by subdivision. Karachele has a total of 64 properties, 28 in the 4WD area. The numbers for Monterey Shores shown includes Monterey Bay, Beach Mar, Corolla Bay and Corolla Shores, and Ocean Sands includes Crown Point and Ocean Lake.
Concern was expressed in the difference between our current high rental rates per bedroom compared to the once popular Nags Head and south beaches. Is it our fate to face a similar decline as we reach full capacity and our beaches continue to erode? Others noted that our summer rental rates still are bargains compared to areas in South Carolina and Florida. [pb1] Do we have an opportunity to enhance our attractiveness and extract higher rents per property?
Concern was noted over the surprisingly slow real growth over the past ten years in occupancy tax revenues, accounting for the 50% OT tax increase in 2005 Peak season rates appear to be growing less than 1.5%/year,not quite keeping up with inflation What does this say about the attractiveness of our area for real estate investment given the relatively high risk of the business and the high maintenance costs in our environment?
ENVIRONMENTAL FACTORS
It seemed to be a consensus that dune erosion and subsequent beach narrowing are a fact of life in COBX. It was noted that some of the early beachfront homes in the 4WD area are already gone. If the beaches continue to narrow the crowding of our beaches will get worse, even if there is no more development. At current erosion rates they could be half as wide in twenty years. This means the beaches will become twice as crowded.
COUNTY SUPPORT SERVICE COST DRIVERS
Discussion centered around the provision of water and waste water treatment plant services for the rental market. Two issues were raised.
1) What are theenvironmental sustainability limitson how much water we can extract from the ground, and how much waste can be absorbed without contamination? These are issues in both Corolla and 4WD areas. Especially since the hypothesis presented is that renters can be very wasteful with their water usage.
2) What are the true economic costs of providing water and waste treatment services to a large rental home versus a two person year round retired couple? Both capital cost recovery driven by peak capacity needs and operations cost recovery seem to be issues.
It was noted that the County does not seem to have a comprehensive investment strategy for the tax revenues it receives from the Golden Egg of COBX. The taxes give it economic power but it seems to be frittered away. Let’s see a long term plan to preserve and improve the attractiveness of the area. Buy up and develop property for public use if necessary as long as it is in tune with what’s gives the area its unique competitive advantage in the rental market.
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What follows are the notes from attendeeson each of the specific issuesand options noted in the pre-read document, plus other issues added.
Preliminary Issues – Residential Property Development
Regulation of Housing (Bedroom) Density for New Construction and Remodels
We need to regulate the number of cars and people using the rental homes. You have assumed two people per bedroom, but it can be twice that many.
The smaller rental homes seem to stay full.
Should limit the number of bedrooms by the area of the lot, e.g. a 20,000 sq ft lot no more than five bedrooms.
Limit the number of bedrooms per house. Focus on quality of houses, not quantity of occupants.
Set up a system for applying to build large multi-bedroom homes that are designated for business use, such as a “wedding house”, maybe in commercial areas only.
Defining When a Large Residential Home Becomes a Commercial Hotel
Sewer and water uses are a barometer, as are the number of cars and traffic problems created.
Should think about the impact on the neighbors and give them a veto if above a certain number of bedrooms – say above 6, but never more than ten.
Perhaps above 5 or 6 bedrooms commercial safety standards should apply with requirements for sprinklers, emergency access to the ground from all levels, ...
Expansion of Sewer and other Infrastructure Based Services to All Corolla Subdivisions
Should not allow conversion to central waster treatment for the larger lots where the septic systems are operational. These restore ground water and keep the island from sinking.
The developer of land who wants to increase housing density through central waste treatment should be required to pay for construction and operations and all environmental impact costs. If they don’t want to then allow them to put fewer homes on larger lots with septic fields.
Hookup and usage fees should reflect the true costs of service on a customer by customer basis.
Residential Architectural Standards
Good idea. Keep us unique. Maybe part regulation, part education.
Have a county sponsored architectural fair to cover building and remodeling.
Keep it simple – Local Beach style
Need to mandate permeable parking, no more pools
Keep with the Outer Banks styles and colors.
We are not in the Bahamas
Should regulate color of exterior of homes.
Some discussion that we should encourage subdivisions to modify their covenants to establish subdivision standards, when they can/
Preliminary Issues List – Commercial Property Development (Corolla Only)
Limitations on Conversion of Commercial Space to Use As Hotel or Other High Density Housing
Should not be allowed.
I second the motion.
Definitely important to limit this – changing the space can be a huge negative to the area with concerns both about the style (height) of the structure and the density of people it attracts.
No need for hotels / high density
Tourists visit Corolla for the beauty and peacefulness. No need to make Corolla like Virginia Beach.
Should not be allowed.
Type of Business Best Fit to Community Needs
We need businesses that provide shoulder season activities.
Water okay, but keep motor boats, jet skis away as they disturb the tranquility, taking away the reason many renters come.
Focus on paddle boats, canoes, kayaks
We need more hike and bike trails with perhaps guided eco tours.
Untapped potential for eco-tourism businesses in our area
Perhaps a planetarium, or more museums (butterfly museum) where folks can go on rainy days, or to get out of the heat
No fun park! Second the motion. Ditto! Me, too!
Sustainable Levels of Businesses by Type
Look at shoulder months. How to attract visitors and enhance their experience.
Co-op building for artists with a crafts – hands-on area for children
Businesses should reflect the needs of this community, i.e. our natural aspects of the area must be valued – local fish, fowl, produce ,..
More Historic recreation opportunities – the life saving station, like Chicamongo (?)
Expansion of Sewer Service to All Corolla Commercial Areas
If so the developers need to pay the full costs incurred for hookup and operations,
Subsidies and economic investments not needed. The market is here for the right businesses.
Architectural Standards
Maintain our sea / sound style of single family homes.
Limit building heights
Preliminary Issues List - County’s Role - Corolla and Off Road
Tourist Market Segments to Be Targeted
It seems like the rental companies are targeting the penny pinchers who load up big houses and spend little money except for groceries and beer. In the past few years the quality of renter has declined.
We should focus on those segments who value our unique aspects – cultural tourism, eco-tourism interests. Quiet, un crowded natural resources
In the off-season try to encourage family reunions and Business retreats which will require stronger set of catering options.
Year Round Market Segments to Be Targeted
Active retired folks
Telecommuters – it was noted that at least in Corolla internet access is good
Business owners on the mainland who want a weekend place.
Degree and Quality of County service important to support COBX area by 2030
Need a service road in the 4WD area when beach is not safe to drive.
Need a bike path from county line to 4WD area, and maybe a hiking trail, boardwalk through the 4WD estuary.
Build a restroom/ changing station similar to southern Currituck Club
Economic Development Investment Incentives
Should not be required. Further development should be made on the basis of economic merit, not subsidies
Less expensive areas developed for workers and families.
Require future development to set aside money for schools on COBX. Make it possible for families with kids to live and work here rather than commute to (and pay taxes in) Dare County.
Management of Utilization of Natural and Historic Resources
Develop additional conservancy areas on undeveloped plats.
Insist that new construction resembles the original historic structures.
Remain true to the historic integrity of Corolla Village ad properties of historic significance.
Make sure existing regulations are strictly enforced, i.e. leaving personal property on the beach overnight, and sometimes all week!
Need to have much more frequent beach clean up during the rental season – pay from occupancy tax.
Reserves to Support Natural Disaster Economic Recovery
Where is the plan? Hurricane in mid August destroys dunes, beach walkways, floods local streets – how much rental income lost while county plans?
Where are the financial resources to rebuild the public beach ?
Protection of Natural Environment: ground water, tress, marsh, sounds, dunes, beach, ocean – wild horses, ...
Purchase land for conservation easements
Protect our natural environment
Discontinue permits for houses with more than ten bedrooms
Acquire Federal protection for the horses
Public Beach and Sound Access
Need to anticipate the need for public restrooms an dpublic gathering places.
Create additional sound access
Enough public beach accesses now
Need permits for day trippers to access the four wheel drive area, especially if the bridge is a go.
The beach in the 4WD is a disaster during the summer with parked cars, trucks and tents
Need potties and trash cans wherever there is public on the beach
Should have user fees collected for Tours and visitors to the off road area to be used to create a conservation fund
Need sound side Eco-rides, tours. Natural trails, boardwalks along the sound.
The sound is an untapped economic resource
Build a restroom/ changing station near the ocean access across from the lighthouse similar to the south end of Currituck Club.
Beach Erosion
Prohibit sand bagging,
Make sand fences mandatory, or provide them to protect the public part of the beach)
Encourage dune rebuilding – maybe sand pushes, but better bring in sand
Create a long term plan and funding to begin a beach nourishment program. If we wait too much longer it will be too late – we will lose years of rentals.
Parking Lot Issues: items that came up in the discussions that require follow-up
Is there commercial property in 4WD area?
From: Ben Woody <Ben.Woody@CurrituckCountyNC.gov>
Subject: RE: Plats in the 4WD area
Date: February 11, 2011 10:32:56 AM EST
To: Edward Cornet <Edward.Cornet@booz.com>
Cc: Peter Bishop Peter.Bishop@CurrituckCountyNC.gov
There are no parcels zoned for commercial uses in the off-road area. When Gerald Friedman platted the Swan Beach subdivision, the original plat labeled certain areas of the subdivision as business blocks. At that time, the county did not have a zoning ordinance. Soon thereafter, the county adopted a zoning ordinance for the outer banks, and zoned the off-road area residential. With the lack of infrastructure and CBRA designation by the Federal Government, the county really had no choice but to zone the off-road area for large lot residential.
The “note” included on a 40 year old plat has no bearing on the land uses allowed by the Currituck County Zoning Ordinance.
Hope that helps.
Ben E. Woody, AICP
Planning Director
Currituck County
PO Box 70
Currituck, North Carolina 27929
(252) 232.6029
Is there a spreadsheet of rental value or property value per square foot?
What is the real average summer population? Consensus seems to be closer to 50,000
Check Karachele rental #s – noted 20, but could be as high as 36 in Corolla
Data Needs and Analysis – to do list
Understand water and waste water and other infrastructure usage by rentals
Improved visitor education on sustainability and environmental issues
Commercial vs residential housing designations and use
Creative and unique attractions that fit with our themes, rather than trying to compete with Myrtle Beach, ...
Investment strategy for COBX tax and public facilities
Sustainability of beach and protection of natural resources and enforcement system
[pb1]Cape Cod / Jersey Shore were also mentioned
