Council Approves Major Special Use Permit for Proposed Parking Garage/Apartments

BY MILES LAYTON

EDENTON — Property taxes are going up, and a major downtown development is moving forward after the Edenton Town Council narrowly approved its 2025-26 budget and a key development permit Monday night — decisions that came just days ahead of the state-mandated July 1 deadline.

Council members unanimously voted to increase the town’s property tax rate by 2.5 cents, raising it from 43 cents to 45.5 cents per $100 of assessed value. The move stops short of the 46-cent rate initially proposed by staff, after council members asked for budget cuts to soften the blow on taxpayers.

“We understand that your recommendation is that the budget be approved at the 46-cent tax rate,” said Mayor Hackney High, addressing the town manager and finance director during the meeting. “But from my conversations with individual council members, it was important that we try to hold the line as much as we could.”

The revised 45.5-cent rate saves about $33,000 in revenue — or roughly $67,000 per penny on the tax rate — while keeping core services intact. Officials said they found the savings primarily by delaying capital expenses and using existing staff vacancies.

With additional increases in water and electricity rates also expected this year, council members said they were trying to limit the financial burden on residents.

“Our citizens are already going to see one uptick,” one member said. “Times are tough. Inflation is up. I think people would appreciate anything we can do to hold back.”

Mayor High added that delaying the vote would have forced the town to call an emergency meeting and schedule another public hearing, putting the town’s long-standing record of on-time budgets at risk.

“I don’t want us to ever be in a situation where we say, ‘Oh, it’s only $33,000. It’s just the people’s money,’” he said. “It’s not our money. And we’ve always delivered our budget on time — I want us to keep it that way.”

Looking Ahead

Edenton’s 2025 budget does not use any fund balance — a conservative move, officials said, to stay in line with Local Government Commission (LGC) guidelines. However, after the audit results are in later this year, the town may revisit deferred capital purchases.

The audit is scheduled to begin in July, six weeks earlier than usual due to pressure on the accounting firm handling Edenton and other municipalities. Officials said they hope to have finalized results by October.

“There may be room to address those needs mid-year,” said Finance Director Virginia Smith. “But we’ll need to wait for the audit to confirm.”

In the meantime, the town has a balanced budget, a timeline for downtown redevelopment, and what Mayor High called “a responsible step forward.”

“This wasn’t easy,” he said, “but I think we got it right.”

Parking Garage and Apartments Approved

Council also approved a major special use permit allowing a new parking deck and six affordable apartments to be built on the large municipal lot on Court Street, behind Edenton’s main business district. The project, proposed by Mainstreet Edenton, is scheduled to begin construction in November and take roughly 18 months to complete.

“These are for teachers, police officers, and public works employees — people who work here and need walkable, affordable housing downtown,” Chesson said.

Chesson said the project team worked with Glave’ & Holmes, an architectural firm specializing in historic integration, to ensure the building design respects Edenton’s character. The parking structure will use reinforced concrete and rebar to minimize vibration and protect nearby historic structures. No pile-driving will occur, and power lines will be buried.

A state archaeological review is also planned for the site due to its historical significance.

“We’re actually excited about the opportunity to do an archaeological survey,” Chesson said. “It’s a rare chance to dig into ground that hasn’t been touched since at least the 1950s.”

Addressing Concerns

The new garage will expand the current 144 surface parking spots to around 200. Developers said the extra spaces are necessary to support Edenton’s downtown revitalization, including offices, a proposed hotel, and an event center capable of hosting up to 260 people.

Council and residents raised concerns about the development’s impact on nearby homes, including views of sunsets, landscaping buffers, and parking availability for downtown workers.

Chesson noted the apartments will not have reserved parking spaces but are expected to use the garage during non-peak hours. Design plans include 10-foot setbacks, new sidewalks, and landscaping to screen neighboring properties.

Anne Rowe of Blount Street urged more personal outreach: “People read letters and throw them away. Sometimes you need to just pick up the phone and ask people to come to a meeting.”

Chesson acknowledged the point and promised to keep engaging with the public. 

“We agree — that’s something we’ll keep working on as we move forward,” he said.

Stormwater and Phase Two

Council members also discussed how the project could help address downtown stormwater issues. Town and project officials said the engineering phase will explore options such as underground vaults to collect and reuse rainwater — possibly to water downtown planters.

“This is a real opportunity to improve our infrastructure, not just build something new,” Town Manager Corey Gooden said.  

A second phase of the project is also in early planning. If completed, the south lot could bring the total number of parking spaces downtown to 245. However, progress depends heavily on securing state appropriations and additional financing.

The current phase one capital stack is built around new market tax credits and state funding, which is included in the Senate’s draft budget. Lawmakers have expressed support, though final approval is still pending.

“We reserve the right to reassess the numbers if the funding doesn’t come through,” Chesson said. “But we’re optimistic.”