Gastonia City Council Meeting: May 2, 2023

The Gastonia City Council convened on Tuesday, May 2, 2023, at 6:00 PM for a regular meeting that included proclamations, public comments, budget presentations, and votes on economic development agreements. The meeting lasted approximately two and a half hours and covered a range of topics from staffing and taxes to historic preservation and community events.

Consent Calendar

• G.1: Approved the FY 23-24 annual operating budget for the Gastonia Conference Center, which projects a 28% increase in revenue despite ongoing losses. Staff noted $345,000 in bookings already on the books for the new fiscal year.
• G.2: Accepted $150,838 in additional surplus sales and insurance proceeds (Budget Amendment 2320041).
• G.3: Appropriated $388 from fund balance and $17,397 from police vehicle sales to the Local Law Enforcement Grant Fund (Budget Amendment 2320042).
• G.4: Transferred $90,000 from Water and Sewer Capital Expansion Fund to cover workers' compensation claims (Budget Amendment 2320043).
• G.5: Recognized $237,966 in General Obligation bond premium revenues and expenditures (Budget Amendment 2320044). Councilman Gallagher questioned the line items; staff explained the premium was a one-time overage above the $37.5 million bond sale, with the excess placed in professional services and issuance cost lines.
• G.6: Awarded a contract extension for Fixed Base Operator services at Gastonia Municipal Airport to AOA Gastonia, Inc. d/b/a Academy of Aviation.
• G.7: Awarded a $566,000 professional services contract to LKC Engineering for the Apple Creek Industrial Park gravity sanitary sewer outfall.
• G.8: Approved an interlocal agreement with Gaston County for solid waste disposal services.
• G.9: Accepted the monthly financial report for March 2023.

All consent agenda items were approved unanimously.

Public Comments & Testimony

Seven residents spoke during the public expression period and the budget public hearing, all expressing strong opposition to the proposed effective tax increase:

• Mark Solos (1521 Nottingham Drive): Argued the proposed five-cent reduction is actually a 9.3-cent tax increase when adjusted for revaluation. Called the 4% pay raise for council “immoral and wasteful” and urged cutting spending. Asked that the city not fund any more of the voter-approved bond, claiming it would fail if re-voted.
• Christine McLaughlin (1654 Village Court): Stated a five-cent reduction would still raise her taxes nearly $900 annually. Cited neighbors forgoing vacations and changing eating habits. Demanded a revenue-neutral rate and suggested impact fees for new development.
• Mike Tamborella (2816 Colony Woods Drive): Noted his property valuation rose 76%. He criticized the budget as a “wish list” and asked council to make hard cuts. Pointed out the general fund reserve balance is at 47.6% (well above the required 25%) and that the rainy day is now.
• Roberta Fell: Repeated concerns about senior citizens and fixed-income residents being priced out of their homes. Urged council to take ownership of the tax increase if they vote for it.
• Sean Stacy: Warned of an upcoming recession, citing inverted yield curves and three bank failures. Called the revaluation “an inflated bubble” and said now is not the time for tax increases. He also pledged to become more involved in local elections.
• Mark Solos (second time during budget hearing): Questioned the need for tax grants and the 1% employee raise tied to diversity training. Suggested using reserve funds to lower the tax rate further. Called for delays on non-essential projects like the Pell Art panels.
• Mike Tamborella (second time): Reiterated that developers pay for utilities and streets, not the city, correcting what he called a misleading statement. Accused some council members of not responding to his emails or calls.

Discussion Items

H.1: FY 2023-2024 Proposed Budget Presentation

City Manager Michael Peoples presented the $146.7 million general fund budget. Key themes were employee retention (17% turnover rate) and improving customer service. The budget proposes a five-cent property tax rate reduction (from $0.52 to $0.47 per $100 assessed value), but due to a 41% average increase in property values from the county revaluation, the effective tax rate increase is 9.4 cents. Major cost drivers include:

• $3.5 million for 4% across-the-board employee raises plus 1% performance plan.
• $650,000 for a police retention and recruitment program (addressing 16 vacancies).
• $375,000 for General Obligation transportation bond debt service (voter-mandated).
• $350,000 for a new customer care center.
• $350,000 in mandated state retirement increases.
• Loss of $2.5 million from the discontinued payment-in-lieu-of-business tax transfer from enterprise funds.
• Loss of $1.35 million in one-time ARPA/fund balance transit subsidies.

Councilman Gallagher explained that after accounting for the five-cent cut, road bonds, transit, and personnel costs, nearly all of the increase is driven by voter-approved debt and competitive compensation. Councilwoman Stepp noted the budget includes no fee increases for city services and pointed out that the city cannot control revaluation or levy impact fees under state law. Staff clarified that residential growth does not pay for itself (63% of tax base is residential) and that new commercial/industrial tax revenues take years to materialize due to delayed assessments and tax-incentive grants.

Council made a unanimous motion to decline the 4% pay raise for themselves, which was approved.

H.2: Project Crow Economic Development Agreement

Council heard a proposal for a Level 3 or 4 local incentive grant for two speculative industrial buildings (280,000 and 420,000 sq ft) near Shannon Bradley Road, totaling $49 million investment. Developer Chris Corey (Maynard Nixon) noted rising interest rates have made these partnerships critical. Donnie Hicks from the Economic Development Commission added that the market is absorbing large industrial space quickly. The public hearing was closed and the agreement approved unanimously.

H.3: Amendment to Master Development Agreement with Highline Partners

Mark Miller of Highline Partners requested a six-month extension (to October 1, 2023) for closing on the former Central YMCA property due to bank failures tightening credit. The project includes 230 market-rate apartments and commercial space at 615 W. Franklin Blvd. The amendment passed unanimously. Councilman Gallagher clarified that the completion date for the Trenton Street realignment is pushed to October 1, 2025, and the overall project completion by June 30, 2028.

H.4: Resolution Supporting Flint Mill Historic Landmark Designation

Marathon Development Group (Raphael Allen) proposed a $77 million adaptive reuse of the 245,000 sq ft Flint Mill (circa 1923) at 1910 Hunt Drive, creating 209 market-rate apartments. Amenities include a Peloton studio, tiki bar, and dog parks. Rents are projected at $1,000 (studio) to $2,100 (three-bedroom). City staff noted the site has received a No Further Action letter from NCDEQ (brownfield). Councilwoman Barber requested one or two affordable units; Allen said they are market-rate but would consider. John Russell of the Gaston County Historic Preservation Commission endorsed the project. The resolution of support passed unanimously, with a formal public hearing to follow at the county level.

Committee Reports

I.1: Central City Revitalization & Housing / Community Engagement Committee

• Approved in-kind service requests for: Gaston Walk and Roll Together (Oct 7), Walk to End Alzheimer’s, Highland Festival, and Gastonia Police Department Donut Dash 5K. All passed unanimously.
• Discussed a policy review for in-kind services. Staff presented three options: (1) cap services per event, (2) waive fees but charge full staffing, (3) create a limited number (six) of partnership slots with waived staffing fees. The committee tabled the vote to allow further research and will revisit.

I.2: Arts Committee

• Approved designs for relocating the Pell Art Panels to the Rotary Pavilion area, but no funding was authorized; the committee deferred implementation due to budget constraints.
• Received updates on a butterfly garden at the farmers market, plain air events, and a community engagement reception.

I.3: Intergovernmental Relations & Economic Development Committee

• Received updates on Citizens National Bank, the Foundry project, Loray Mill Phase II, and Flint Mill redevelopment.

Key Outcomes

• Consent agenda (9 items) approved unanimously.
• H.1: Budget public hearing held; no vote on the budget itself (budget adoption is scheduled for a future meeting). Council publicly declined the 4% pay raise for themselves (unanimous motion).
• H.2: Economic development agreement for Project Crow approved unanimously.
• H.3: Amendment to Highline Partners development agreement approved unanimously.
• H.4: Resolution supporting Flint Mill historic landmark designation approved unanimously.
• In-kind service requests for four events approved.
• Pell Art Panel designs approved, though no funding was allocated.
• City Attorney reported a default judgment motion will be filed against Moses Colbert and the Gaston County Baptist Association for zoning violations on the Faith, Hope and Love property.
• City Manager announced progress on Linwood Park master plan, the Honey Hunters baseball team’s successful opening, and the promotion of Brian Pataki to Public Utilities Director.
• Council members reported on attending the Gastonia Spring Art Show, the Senior Games, the Honey Hunters opener, and a League of Municipalities City Vision event.
• Upcoming meetings: Next regular council meeting May 16; offices closed May 29 for Memorial Day.