Implementing The Loop

IMPLEMENTING THE LOOP

Vision Statement

SouthPark will continue to be one of the City of Charlotte’s premier mixed-use regional activity centers through the continued investment in public infrastructure that will improve walkability and connectivity and build more vibrant public places. Great streets, more parks and plazas, improved greenspace, and safer intersections that can be used by residents, employees and visitors of all ages and socio-economic backgrounds will be the foundation for future investment in the SouthPark activity center. Whether by the public or private sectors, these activities will ensure continued economic vibrancy and help to reinforce SouthPark’s unique identity and reputation within the region and within surrounding neighborhoods.

SouthPark Municipal Service District (MSD) Goals

The overarching goal of the SouthPark MSD is to strengthen SouthPark’s ability to attract and retain employment opportunities and generate new property and retail sales tax revenue for the City of Charlotte by implementing projects that enhance the area’s locational advantages for both employment and residential living. As the SouthPark area continues to urbanize, it is essential that there is a comprehensive plan to manage future growth and focus limited resources on projects that will ensure continued success and protect economic vitality.

Promotion, planning, advocacy, and funding of capital investment to enhance the economic vitality of SouthPark, including street lighting, street and sidewalk connections, and pedestrian and multi-modal paths.
Management of contracts to provide enhanced service needs for SouthPark, including enhancements in hospitality, safety, and security and beautification.
Branding, promotion, and marketing of SouthPark to increase tax base and maintain a unique identity for the area.
Creation of an advocacy group to represent area interests and coordinate with government and private agencies, business owners, and residents.

PROPOSED MSD BOUNDARY

Potential Annual Revenue

Existing MSD’s in Charlotte have a wide range of tax rates, which are established based on the specific needs of each area. Initial projections for SouthPark assume a potential rate of $0.04 per $100 in property valuation, in line the rate established for South End. At this assumed rate, a proposed SouthPark MSD would generate approximately $1.4 million in annual revenue to be used for projects and services within the district.

Priorities for spending must be clearly defined prior to establishing as part of the adoption process. Revenue generated by the MSD could be used to fund a variety of services that enhance, not replace, existing services in the area. The services should reflect the specific needs of the SouthPark neighborhood. Given that the service needs of high-density mixed-use employment centers are often greater than those generally provided throughout the city, MSDs can be an effective tool for enhancing and revitalizing these districts and increasing their long-term economic viability.

FAQs

1Who is SouthPark Community Partners and what is its purpose?

SouthPark Community Partners is a nonprofit organization that is requesting formal adoption of a municipal service district (MSD) in the SouthPark neighborhood of Charlotte.

SouthPark is a premier, mixed-use activity center in Charlotte. The area supports a significant concentration of jobs contributing to the economic vibrancy of the city. To maintain competitiveness, SouthPark will need focused and continuous infrastructure investment. Great streets, more parks and plazas, improved greenspace, and safer intersections will be the foundation for future success. An MSD will provide revenue to enhance city services in SouthPark to meet established goals for the area.

2What is the background on this initiative?

Previous planning initiatives for the SouthPark area, including the SouthPark Urban Land Institute Advisory Services Panel Report, the SouthPark Comprehensive Neighborhood Improvement Plan, and The Loop Framework Plan, all recommend the establishment of a dedicated funding stream to address the specific needs of the area.

In March 2021, SouthPark Community Partners began a four-week process to determine the local appetite to establish a Municipal Service District (MSD) in SouthPark. North Carolina General Statutes allow cities to create special service districts to address strategic priorities. An additional property tax is levied in order to provide projects or extra services that benefit the properties in the district.

3What is an MSD?

An MSD is a defined area within a city, town, or village in which an additional property tax is levied in order to provide projects or extra services that benefit the properties in the district. The MSD must serve a desired function; SPCP will support urban revitalization projects.

4What is the taxable value of the district?

The proposed SouthPark MSD district has a total taxable value of $3.49 billion, representing 1.7% of the total for all of Mecklenburg County.

5What is the potential breakdown of revenue?

Assuming an MSD tax rate of $0.04 per $100 in valuation this would equate to $1.39 million in annual revenue. Commercial property owners, including rental apartment communities, will contribute 97.3% of the total revenue generated by the SouthPark MSD.

6What are the proposed MSD’s priorities?

Priorities for spending will be clearly defined prior to establishing as part of the adoption process. Revenue generated by the MSD could be used to fund a variety of services that enhance, not replace, existing services in the area. The services should reflect the specific needs of the SouthPark community. Given that the service needs of high-density mixed-use employment centers are often greater than those generally provided throughout the city, MSDs can be an effective tool for enhancing and revitalizing these districts and increasing their long-term economic viability.

Priorities include:

Advocacy
Marketing & branding
Security
Placemaking
Implementation of priority projects
Organization
Business recruitment
Promotion & events

7Who would be the top contributors?

Based on property value, the largest individual contributor to the SouthPark MSD would be SouthPark Mall. By land use, office buildings will contribute the largest overall share at 38.3%, followed by rental apartments (23.7%) and commercial (21.5%). Individually owned residential properties, including singlef0amily detached, townhouse, and condominium units, represent only 2.7% of the total property value in the proposed district.

8How many for-sale housing units are in the designated area?

There are 423 housing units (421 townhouse/condo and two single-family) with a total assessed property value of $94,966,200. Based on the proposed tax rate for the SouthPark MSD, individually owned residential units will contribute $89.80 on average per year.

9When would the MSD become effective?

Pending the MSD is adopted by City Council after the second ordinance reading on April 11, 2022, the MSD will be effective July 1, 2023.

have questions about the MSD?

Additional Resources

Summary Brochure
Finding of Need Report
First-year SouthPark MSD work plan