ELIZABETH CITY — Elizabeth City residents could face rising utility bills and additional infrastructure costs as city council prepares to consider a large-scale residential development that would bring hundreds of new homes to the western edge of the city.

While the proposal promises new housing and population growth, some city officials warn that the rapid pace of development could place significant strain on Elizabeth City’s electric grid, water system, sewer infrastructure and public safety services, potentially forcing residents to pay more each month in utility costs and taxes.

Give this story a solid read – yeah, on first glance it’s a boring infrastructure story, but if you read into it and see what I see, EC residents may get screwed into paying higher utility rates while they foot the bill for more and more infrastructure. Am I missing something here? Why do people keep electing the morons to council who are inclined to make decisions that have the potential to cost the residents more and more money?    

The council will hold public hearings Monday night, March 9, on requests to annex and rezone land for the proposed 565-unit Tanglewood Crossing subdivision, a development planned on a 157-acre tract off Halstead Boulevard Extended.

The hearings will take place during the council’s regular meeting, which begins at 7 p.m. upstairs at the municipal building on Colonial Avenue.

Monday’s hearing will give residents an opportunity to voice their opinions before the council makes a final decision on the requests.

For supporters, the project represents new housing opportunities and economic growth.

For critics, the issue is whether Elizabeth City can afford the infrastructure expansion required to support developments of this scale without passing the costs on to existing residents.

As the city weighs the future of Tanglewood Crossing, the debate highlights a larger question facing Elizabeth City: how to manage growth responsibly while protecting taxpayers and utility customers from the escalating costs that often follow rapid development.

Flashback — City council voted 4-2 on Feb. 23 to schedule the public hearings on the annexation and rezoning requests.

First Ward Councilmen Joe Peel and Johnson Biggs voted against holding the hearings.

Praise God that Peel used that meeting to present his analysis of the financial impact of rapid growth, urging fellow council members to carefully consider how development decisions made today could affect city residents for years to come.

Utility costs could rise with growth

One of the central concerns raised by council members is the growing cost of maintaining and expanding the city’s electric system as new subdivisions continue to be approved.

According to projections presented by Councilman Peel, the wave of housing construction already approved — combined with projects like Tanglewood Crossing — could increase the average city resident’s utility costs by about $44 per month, or roughly $528 per year.

Peel told fellow council members that 2,283 housing units have already been approved across Elizabeth City. If built, those developments could bring approximately 5,700 additional residents to the city.

That would represent an estimated 33 percent increase in population, dramatically increasing demand for electricity, water and sewer services.

Meeting that demand, Peel warned, will require expensive infrastructure upgrades that will ultimately be paid for by ratepayers.

Electric system facing major expansion

The city’s electric department is already preparing for the strain of increased demand.

In January, the council approved a $2.65 million bid for the construction of a new electric substation to serve growing development in the western part of the city.

However, officials estimate the total project could eventually cost as much as $12 million once construction and equipment expenses are fully accounted for. WTF!? How’s that happen?

The city plans to finance the project through a bond, meaning electric customers would be responsible for repaying the debt over time.

Peel estimated that if the city borrows $12 million at 5 percent interest, the electric system would face annual payments of about $780,000.

At the same time, the city’s wholesale power supplier, ElectriCities, is expected to increase costs by 4.5 percent, adding further pressure to local rates.

Combined, those factors could push the average monthly electric bill from about $143 to roughly $155, Peel said.

Developer exploring outside power option

Adding another layer of complexity to the issue is the possibility that the new subdivision may not rely entirely on the city’s electric system.

During discussions with the planning board in December, Tim Culpepper of Canopy Development said the company intends to explore an agreement with Albemarle Electric Membership Corporation in Hertford to help supply electricity to the project.

The idea would be to reduce demand on Elizabeth City’s electric system by allowing an outside provider to serve part of the development.

Peel expressed concern about that possibility, arguing it could leave city residents responsible for paying the cost of new electrical infrastructure while the development generating the demand purchases power elsewhere.

In that scenario, the city could be left paying for upgrades without gaining the additional customer revenue needed to offset the investment.

Water and sewer systems also under pressure

Electric infrastructure is only part of the financial challenge.

Peel’s analysis also projected major costs for expanding the city’s water and sewer systems if development continues at its current pace.

To meet increased demand for drinking water, the city’s well field could require as many as eight additional wells, each costing around $1 million to build.

For the city’s 7,126 water customers, that expansion could translate into an additional $7 per month on water bills.

Sewer upgrades could also be necessary to handle higher wastewater flow, potentially increasing sewer bills by about $12 per month.

Taken together, the electric, water and sewer increases could represent a significant new financial burden for residents already dealing with rising living costs.

Public safety expansion may follow

Growth on the scale proposed for Elizabeth City would also require additional investment in public safety infrastructure.

Peel warned that the city could eventually need to build a new fire station and purchase additional equipment to maintain emergency response times.

A new fire station and truck alone could cost around $10 million, according to preliminary estimates.

Those figures do not include the cost of hiring additional police officers, firefighters and building inspectors, positions that would likely be required as the population grows.

Possible property tax increases

The costs associated with those services would come from the city’s General Fund, which is primarily supported by property taxes.

Peel estimated that accommodating growth could require at least a 3.5-cent increase in the property tax rate.

For a homeowner currently paying around $1,500 annually in city property taxes, that increase would amount to roughly $93 more per year.

Development proposal before council

Against that backdrop, the council will consider annexation and rezoning requests for the Tanglewood Crossing subdivision.

The project would place 565 residential units on a 157-acre tract located behind Hall Honda and along the western edge of the Stockbridge neighborhood.

The property is owned by Virginia Beach resident Mehul Shah, while the rezoning application was submitted by Canopy Development, a company based in Norfolk.

The land is currently zoned for Commercial (C-1) and Industrial (I-2) uses.

If the rezoning request is approved, those classifications would be changed to residential zoning that would allow the subdivision to be built.

Under the proposal:

• The Commercial portion would be rezoned R-6, allowing multi-family housing such as townhomes and duplexes.
• The Industrial portion would become R-8, which is intended primarily for single-family homes on roughly 8,000-square-foot lots.

The majority of the subdivision would consist of single-family homes, with higher-density housing placed in designated sections.

Annexation would place property inside city

The annexation request is tied directly to the rezoning proposal because about half of the property currently lies outside Elizabeth City’s municipal limits.

Electric Department Deputy Director Donnell White explained earlier this year that the tract currently has a mixed service situation.

Part of the land is expected to receive utilities from Elizabeth City, while the remainder sits in an area where property owners could choose a different provider.

If annexed, the entire development would fall under the city’s jurisdiction, meaning Elizabeth City would be responsible for delivering municipal services to the property.