Annexation by the city of Wilmington appears inevitable for Monkey Junction, despite concerns by commercial entities and business owners about the effects it may have.
Higher taxes, restrictive code enforcement and a lack of solid vision for Monkey Junction are among misgivings mentioned by retailing giant Walmart and smaller business operators like Georgios Lazaridis, who owns Giorgio’s Italian Restaurant at 5226 S. College Road.
“I don’t see any big change the city will bring here if we are annexed. We were completely forgotten over here and now it comes up,” Lazardis said. “Unless the city does something to Carolina Beach Road to show us there is a benefit to being in the city, I don’t think we should pay higher taxes and higher rates.”
City Council may consider a resolution of intent at its Feb. 3 meeting, the first step in a process that could lead to annexation by spring, following state-mandated public information meetings and hearings.
The annexation would become effective one year from the date of City Council’s approval of the ordinance, as dictated by state law.
The 1.2-square mile annexation area is generally bounded by South College and Carolina Beach roads and includes about 3,000 residents, in addition to some of Wilmington’s larger retail outlets.
City officials tout annexation benefits like improved growth and planning, along with the extension of services including street maintenance, law enforcement protection and code enforcement.
Walmart’s opposition
Walmart, which operates a Supercenter at 5135 Carolina Beach Road, isn’t in favor of the proposed annexation.
The Arkansas-based corporation “has been carefully monitoring the issue for some time now,”  spokesman Chris G. Neeley said. Walmart also released a statement outlining specific concerns:
“Obviously, we would prefer to operate under the current structure because it allows us to provide our customers with a broader base of merchandise; specifically, the lawn and garden center.
“Under the current structure, we are able to expand our lawn and garden center during the spring and summer months to areas on our property outside of the main building. If the annexation passes, the city of Wilmington’s ordinances would greatly affect our ability to offer our customers many of the lawn and garden merchandise they have come to expect from this Walmart location.”
Taxes would also go up, Neeley said.
“It’s going to affect us and our customers. We would like to continue to operate without additional cost,” he said. “The Walmart people see today would have to change and that will affect our customers. Obviously, we prefer the current structure and that’s why we put the store there.”
City spokeswoman Malissa Talbert was unaware of Walmart’s concerns, but said many large retailers already operate successfully within city limits, including the Walmart location at 5226 Sigmon Road, off Market Street.
Those within the 821 acre annexation area would pay both city and county taxes if the measure is formalized. City officials said Monkey Junction was first identified as an annexation candidate in the 1990s because of the types of land use and development taking place. The population average of  3.72 persons per acre falls well within state guidelines that require at least 2 residents per acre, in a primarily urban setting.
A ‘tax equity’ question
 Wilmington City Manager Sterling Cheatham said annexation is a fair way to spread out the expense of services already benefiting Monkey Junction businesses and residents, in addition to city services they will receive once within Wilmington boundaries.
“It’s a tax equity question. On the one hand, someone’s taxes are going up. On the other hand, people need to pay for the services they receive,” Cheatham said. “We provide a lot of services for people to get to these facilities and shop and eat there. When we talk about financial aspects of annexation, I think other aspects are important too, but people get stuck on the financial piece.”
Cheatham added that 80 percent of local sales tax is generated within city boundaries, but the county’s formula returns only 20 percent to Wilmington.
“City taxpayers are paying for county infrastructure. When we talk about the financial aspect as part of it, we need to talk about how the lion’s share of money in sales taxes gets distributed. City residents also pay county tax,” Cheatham said.
Ted Davis Jr., New Hanover County commissioners chairman, does not favor “forced annexation”
of any area.
“When the city says it is going to annex an area regardless of how people feel about it, that’s forced annexation,” Davis said. “They say, ‘Why do we need to be annexed? We’ve got fire departments and the sheriff’s department.’ I’d sure like to know how the city of Wilmington participates in services provided by the New Hanover County Sheriff’s Department and New Hanover County Fire Services.”
City Council was set to consider the matter at its December meeting, but deferred action until the finance committee of the recently created Cape Fear Public Utility Authority clarified some points in its draft agreement with the city relative to providing water and sewer services in the proposed annexation area.
“New Hanover County is no longer in the water and sewer business. The city of Wilmington is no longer in the water and sewer business. The city and county joined together and formed the Cape Fear Public Utility Authority and that’s their bailiwick now,” Davis said.
If any business in Monkey Junction seeks rezoning after annexation, it will have to go to Common Council rather than the county commissioners, he said.
“There’s absolutely nothing we can do except talk like we’re doing now,” Davis said. “Any feedback (from residents and businesses) I’ve gotten is negative. I’ve had no positive comments. Every time they annex an area, the county loses money in the return of sales tax that is distributed. When we lose that income the city gains, where is the county going to get it?”
In speaking with other Monkey Junction business owners, Lazaridis hears similar misgivings.
“Most people are against it as far as I know. Annexation is not something they care for right now,” he said. “I don’t see them trying to educate me about what will come with annexation and what actual benefits we will reap.”
North Carolina is one of only six states in the U.S. that has laws on the books allowing forced annexation, Lazaridis said.
“I don’t see any big change the city will bring here. My concern is not a lot of money will be spent to upgrade Carolina Beach Road and Shipyard Boulevard,” he said. “I also don’t like the fact the city has a lot of lower income housing and there will be more of that housing being pushed out of the city from where it is now.”
A ‘viable strategy’
Cheatham said property taxes and other revenues from services like city trash collection and utilities are projected to be “a little over $1 million a year for the whole area,” with expenses totaling between $700,000 and $800,000.
“The difference would be the capital cost would be increased,” Cheatham said.
Cheatham defended the annexation process as “a viable strategy that cities throughout North Carolina have used to grow a strong local economy.”
Some areas, like a 1,400-acre tract off River Road near city limits that is slated to be developed for mixed use by a California company, have voluntarily requested annexation “because they’re going to get a different level of development standards and quality growth,” Talbert said.
“Cities need to strategically plan for the growth and development of an urban area,” Cheatham said. “The nature of (Monkey Junction) has changed so it is more of an urban area, and I really can’t tell when I leave city limits because of the development that has happened.”
The city’s future is tied to annexing adjacent land, Talbert said.
“We hope over time we will do periodical and methodical annexations,” she said. “Number one, you want to provide growth and development. Number two, you want to provide services and number three, you want to provide taxes. We want to make sure there is an equitable tax base.”
With inclusion into municipal boundaries comes more stringent code enforcement.
Lazaridis believes the timing is just not right.
“Farther down the road, it will help parts added to the city enjoy a nice boom, but I don’t see it happening right now,” he said. “But if they’re going to pass it, they’re going to pass it nonetheless.”
Growth-related issues in places like Monkey Junction need to be addressed now, Talbert reiterated.
“The area is not going to stay
stagnant,” she said.