By Nicole Bowman-Layton

EDENTON — Chowan County officials are working through how to measure the economic return from a proposed $1 million local government incentive for a Carlie C’s IGA grocery store in Edenton, including how the county could verify sales generated by the new store before making performance-based payments.

The discussion Monday was the latest step in a months-long effort to bring a second full-service grocery store to Edenton Village Shopping Center on North Broad Street.

Under the proposal, the Town of Edenton and Chowan County would each provide up to $500,000 over five years — potentially $100,000 annually from each government — for a combined incentive of as much as $1 million.

Edenton Town Council already approved its participation in the performance-based incentive and sent the matter to the county. Chowan commissioners previously held a public hearing on the county’s proposed share, but have not yet given final approval to the county’s participation.

County Manager Kevin Howard told commissioners Monday, Sept. 21, 2026, that county officials are working with the town on the agreement and have identified specific performance requirements they want included before moving forward.

“Our agreement will be with the town,” Howard said.

That arrangement is significant because the county’s portion of the incentive would be administered through Edenton rather than paid directly to the retailer.

Commissioners focused Monday on what measurable benchmarks should be included in that agreement and how the county could verify them.

Commissioner Larry McLaughlin said the county needs documentation showing what taxpayers receive in return for the proposed expenditure.

“If we’re going to give a half million dollars out, [there should be] something that documents what is coming to the county for that,” McLaughlin said.

Incentive follows the revenue

The proposed incentive has been structured as performance-based rather than an upfront payment.

Carlie C’s and the shopping center owner would first have to make their investment, complete the redevelopment and open the grocery store. The store would then have to operate for at least 12 months and meet required performance benchmarks before incentive payments begin.

That structure was a central part of the proposal presented to commissioners during a June public hearing. Local economic-development officials said then that the landlord and retailer would assume the upfront financial risk, with incentive payments coming only after the project began generating new tax revenue.

The grocery store is expected to anchor the continuing redevelopment of Edenton Village, where Tractor Supply opened in late 2025. Local economic-development officials have also said other prospective retailers have expressed interest in the shopping center contingent on securing the grocery anchor.

Earlier projections presented by Edenton Chowan Partnership Board Chair Joe Wach estimated that the grocery project and two additional retailers that could follow it could generate more than $400,000 in new county tax revenue in a year while the county’s annual incentive payment would be capped at $100,000. Those figures are projections rather than guaranteed revenue.

How do you measure the sales?

Howard said Monday that sales-tax generation is one of the more obvious ways to measure the project’s performance, but obtaining store-specific figures through the state presents a problem.

North Carolina tax law generally makes information concerning an individual taxpayer’s tax liability confidential. N.C. General Statute 105-259 protects information contained in tax returns and reports from disclosure except under specified circumstances.

The N.C. Department of Revenue also does not require retailers to report gross retail sales by individual business location. Retailers operating in multiple counties must allocate local sales-tax liability by county, but that does not provide Chowan County with a state report showing sales specifically from the Edenton Carlie C’s location.

That distinction could be particularly relevant because Carlie C’s operates more than 30 stores across North Carolina. Its nearest existing locations include Washington, Chocowinity and Tarboro.

Commissioners therefore discussed whether the company could be required to provide store-specific sales information itself as part of the incentive agreement.

“They asked for the money, so they should be able to provide the information,” Board Chair Bob Kirby said.

Howard said the county and town are still working through those requirements.

The issue is important because the grocery-store proposal has been sold partly on the new revenue it could generate for both governments. In addition to sales taxes, officials have cited increased real-property values following redevelopment, taxable business equipment and other economic activity associated with filling the long-vacant grocery space.

The former Food Lion space has been without a grocery anchor for decades. During the county’s June public hearing, ElectriCities economic developer Jennings Gray said efforts to replace the former Food Lion date back about 14 years and that market studies have continued to show demand for another full-service grocery store in the Edenton area.

The proposed Carlie C’s would include a full-service meat department, made-from-scratch bakery and deli.

Water rates increase Oct. 1

Commissioners also approved a substantial increase in county water rates Monday following a public hearing.

The usage charge will increase from $7 to $11 per 1,000 gallons beginning Oct. 1, with customers first seeing the increase on bills issued in November.

The increase comes as Chowan County pursues major improvements to its water system, including a proposed reverse-osmosis treatment plant that officials now estimate could cost $75 million to $80 million.

During the public hearing, resident Ed Stiver said he initially experienced sticker shock when he saw the proposed increase but changed his perspective after researching water rates in surrounding areas.

Stever said he believes the county has underfunded its water system for years. He also said he has spent thousands of dollars on filtration equipment at his home because of the hardness and taste of county water.

Howard said Chowan County’s water meets state standards for safe drinking water but acknowledged longstanding concerns about taste, hardness and discoloration.

“We do meet all the state standards as far as being safe to drink and safe to use,” Howard said.

The existing ion-exchange treatment system uses salt as part of the process of removing iron and other minerals. Howard said the proposed reverse-osmosis system would substantially improve the finished water.

The county is targeting approximately 2029 or 2030 for the new plant to become operational.

Howard said Chowan County has already received a $30 million state grant toward the project. Officials believe another $30 million may be available through the state budget. The project is now expected to cost approximately $75 million to $80 million.

The rate increase is also important to the county’s eligibility for favorable state financing for other water improvements.

Commissioners later authorized an application to the N.C. Department of Environmental Quality’s Division of Water Infrastructure for improvements to the Cape Colony water system. Howard said the county could potentially qualify for 75% loan forgiveness.

Some water lines in that area date to the World War II era, he said.

Senior Center to test evening hours

The Chowan County Senior Center will test expanded hours during October after commissioners approved a request prompted by feedback from center users.

The center will remain open until 7 p.m. Monday through Thursday for the month.

Recreation Department Director Brian Chappell said a questionnaire distributed to users showed considerable interest in evening access.

Existing staff schedules will be rearranged to cover two evenings each week, while another employee will cover the remaining two. Bunch estimated the additional staffing expense for the October trial at $320, which can be covered within the existing budget.

The center also plans eventually to test Saturday morning hours from 8 a.m. to noon.

Commissioners separately authorized the Senior Center to apply for an $11,000 general-purpose grant. The required $3,667 local match can be provided through existing staff salaries, meaning no additional county appropriation would be necessary.

Potential purchases include a portable automated external defibrillator for Senior Center vans, a replacement pool table, tables and chairs, a larger laminator and shirts identifying staff and volunteers.

County adopts updated land-use regulations

Commissioners also adopted an overhaul of Chowan County’s land-use regulations following a separate public hearing.

The project began in 2023 and consolidates regulations that previously existed separately, including zoning, subdivision, flood-damage prevention, nuisance and junked-vehicle provisions.

Ashli Barefoot, director of planning and land use with Insight Consulting Group, said the goal was to make the county’s development regulations easier for residents, developers and county staff to understand and administer.

“This was not a model ordinance that we copied and pasted from anywhere else or another jurisdiction,” Barefoot said. “It was developed around your existing land-use regulations.”

Barefoot said the rewrite generally does not substantially change what property owners can do. Instead, it reorganizes regulations, clarifies procedures, updates references to state law and allows more matters to be handled administratively when applicants meet objective standards.

Among the changes are clarified subdivision procedures, a family-subdivision exemption, additional minor-subdivision provisions and a reorganized table of permitted uses.

Work on the ordinance was temporarily slowed by changes to North Carolina law affecting local development regulations. Beerput said additional legislation adopted in 2025 and 2026 will continue to require review and potentially future amendments.

McLaughlin questioned portions of the document dealing with preservation of rural character and farmland, saying some of the policies appeared to lack enforcement power.

Barefoot explained that some of the language came from the county’s land-use plan and is intended as policy guidance rather than an enforceable development regulation.

Commissioners approved the required consistency statement and adopted the updated regulations.

County supports Hertford infrastructure project

Commissioners approved a letter supporting a Town of Hertford grant application for electrical infrastructure associated with MiTek’s planned relocation from Chowan County to Perquimans County.

Howard said Chowan County had attempted to retain the company but did not have the space it needed for expansion. He noted that keeping the company nearby still benefits Chowan residents who work there.

Hertford Grants Administrator Jon Hawley said the grant would help finance an electrical substation needed to reliably serve MiTek while also providing capacity for future development.

“The Town of Hertford would be very uncomfortably close to its electrical capacity serving MiTek and our existing load without this,” Holly said.

Commissioners approved the letter of support.

Interim 911 director appointed

Commissioners appointed Assistant 911 Director Carrie Thrasher to serve as interim director of the county communications center following the resignation of Herman Weiss.

Sheriff Edward “Scooter” Basnight said Weiss left to take another position in Richmond, Virginia, and the county is accepting applications for a permanent replacement.

Thrasher is among those applying for the permanent position.

While serving as interim director, her salary will increase from $57,112 to $63,752, the salary paid to the former director.

Commissioners also approved a solid-waste fee of $18 per month following a public hearing in which no residents spoke.

The board received a revised county personnel policy developed in conjunction with its recent pay and classification study but took no action Monday. Commissioners also reviewed preliminary year-end financial figures, which Finance Officer Cathy Smith cautioned remain subject to change as auditors complete their review.