Title
Public Hearing on Municipal Service District 5 Boundary Expansion
Action
Action:
Conduct a public hearing on the proposed expansion of Municipal Service District 5.
Body
Staff Resource(s):
Alyson Craig, City Manager’s Office
Shahid Rana, Economic Development
Policy
§ State law allows cities to create municipal service districts (MSDs) to promote economic development and/or provide services at a higher level in the district than provided for the entire city.
§ Urban development/redevelopment areas are one of the municipal services for which a district can be created.
§ MSDs are funded through an assessment on all property owners within the district boundaries. All the money raised by the MSD assessment must be spent on district enhancement programs.
§ In accordance with NC General Statute Section 160A-536, projects funded through MSD revenue may include (but are not limited to): expansions/improvements to support utility provision, street lighting, streets and sidewalks; construction of pedestrian and bicycle paths, construction of public buildings, improvements to relieve traffic congestion, improvements to reduce the incidence of crime, providing city services or functions in addition to or to a greater extent than those provided for the entire city, sponsoring events, promoting business investment and economic vitality, coordinating public private partnerships, and marketing support.
§ NC General Statute 160A-538 requires a public hearing prior to decisions on MSD boundary expansion.
Explanation
§ MSD 5 is operated by University City Partners.
§ On January 16, 2026, University City Partners requested a boundary expansion for FY 2027.
§ Council received information about the potential boundary expansion on January 29, 2026.
§ On March 5, 2026, the Budget, Governance, and Intergovernmental Relations Committee received an overview of the potential boundary expansion.
§ A boundary expansion of MSD 5 was included in the Manager’s Proposed FY 2027 Budget, which was presented on May 4, 2026.
§ Council will consider approval of the proposed boundary expansion as part of the FY 2027 Budget Adoption on June 8, 2026.
Boundaries
§ The current MSD 5 boundary follows property lines and includes properties between the Highway 29/49 connector off Interstate 85 on the south, the rear property line of parcels on the west side of Mallard Creek Road on the west, Mallard Creek Church Road and some adjacent commercial properties on the north, and the rear property line of parcels on the east side of Highway 49 on the east.
§ State law outlines several guidelines for determining boundaries of municipal service districts. Properties within the MSD 5 boundaries must satisfy at least one of the following guidelines:
- Location in or surrounding existing or redeveloping concentrations of retail, office, or significant employment-generating uses,
- Surrounding major institutional uses, such as a university or hospital, and
- Location within 1,500 feet of major transportation and transit corridors, except for residential parcels which must be within 150 feet.
§ The proposed MSD 5 boundary expansion extends the existing district north and northeast to include additional properties that are contiguous to, and functionally part of, the University City Town Center, including:
- Properties beginning at the current northern edge of the district near JW Clay Boulevard and extending northward to include areas along and south of Mallard Creek Church Road between North Tryon Street on the west and Mallard Creek Road on the east;
- Properties east of Mallard Creek Church Road including those bounded by University City Boulevard and the Mecklenburg County line, following parcel lines and natural edges where applicable; and
- Properties located north of Interstate 85 in the vicinity of Pavilion Boulevard and surrounding parcels, while generally limiting further northern extension to areas consistent with existing development patterns and roadway boundaries.
§ The proposed boundary continues to follow property lines and major transportation corridors, including North Tryon Street, JW Clay Boulevard, Mallard Creek Church Road, Mallard Creek Road, Interstate 85, and University City Boulevard, creating a contiguous and cohesive district that aligns with the primary commercial, retail, and economic activity areas of University City.
Community Input
§ University City Partners utilized a mix of outreach methods to ensure diverse participation including listening sessions, public information sessions, digital outreach, and informational postcards.
§ Key outcomes of engagement efforts include over 19,453 emails sent, 2,094 postcards mailed, 240 outreach surveys completed, and 286 in-person outreach interactions with rate payers.
Attachments
Attachment(s)
Map