SOUTHPORT — Rep. Charles Miller (R-Brunswick, New Hanover) has introduced two bills to de-annex a small group of Southport properties and exempt them from city taxes less than a year after he led an initiative to eliminate Southport’s extra-territorial jurisdiction. City officials warned the bills encourage further de-annexations and threaten Southport’s small-town charm with overdevelopment.
READ MORE: Southport planning board discusses 2050 plan, ETJ concerns linger
Miller introduced the bills on March 6, allowing a total of 14 properties for de-annexation. If the bill passes, the property owners would no longer pay city taxes in July.
The properties are addressed in two bills: House Bill 337 removes three commercial properties from the corporate limits of Southport. The subject parcels are in the heart of the city, including around 2.5 acres at 1408 N. Howe St., 1222 N. Howe St., and 1221 N. Atlantic Ave.
A city spokesperson said the parcels’ two property owners, Southport Motorcars president Michael Rhyne and Southport Dog owner Thomas Tolley, requested the legislation.
A separate bill, House Bill 338, would remove 11 residential properties in the Heron Circle and Oakwood Glen neighborhoods from city jurisdiction. A city spokesperson said there is some confusion as to whether the residential properties are within Southport or Oak Island’s incorporated boundaries; PCD reached out to Miller and the League of Municipalities for clarification but did not receive a response by press.
Both bills passed their first readings and were referred to the House Committee on State and Local Government on March 10; they’re scheduled to be heard in the committee Tuesday.
The new bills would be another loss of authority for Southport after other legislation put forth by Miller eliminated the city’s 1,900-acre ETJ. Miller introduced H.B. 911 last May to remove the city’s extraterritorial jurisdiction; the law passed in June and gave Brunswick County control over Southport’s former-ETJ territory.
“It’s unfortunate that the loss of our ETJ has encouraged property owners to ask our legislators to let them opt out of Southport,” Alderman Karen Mosteller said at last Thursday’s meeting.
Mosteller requested aldermen reach out to Miller and Sen. Bill Rabon (R-Brunswick) to oppose the bills. She argued the lawmakers would set a dangerous precedent by encouraging other property owners to avoid taxes despite benefitting from the city.
“Allowing de-annexation is an avalanche hanging over our heads,” she said. “Our state representatives hold the power to crush us with de-annexation.”
Other aldermen echoed her concerns during the meeting. Robert Carroll said the city has recently been threatened with de-annexation from other downtown property owners because they dislike certain municipal actions, such as rejecting a request for a neighborhood gate.
“We have got to draw a line in the sand,” Carroll said. “If you don’t get your gate, you don’t get your gate. It’s that simple. It shouldn’t be an opportunity for an entire community to say: ‘I’ll just go to my buddy, who happened to find his way into a seat of power, and ask for de-annexation.’ It’s wrong and it shouldn’t continue to happen.”
Carroll criticized the county’s General Assembly delegation for neglecting municipal concerns regarding de-annexations and extra-territorial jurisdictions. The city opposed Miller’s ETJ bill last year and argued it would lead to over-development, traffic congestion, deteriorate residents’ quality of life, and benefit large industries at the expense of small local businesses.
“If they don’t have Southport’s best interests in mind,” Caroll said, “why do we continue to elect people simply because of the letter behind their name?”
Port City Daily reached out to Miller to ask his reason for introducing the bills but did not receive a response by press. He told the State Port Pilot last June he took action to remove the city’s ETJ after residents in Smithville Woods — a neighborhood previously under Southport’s authority — complained to him about tree removal fines.
1408 N. Howe St. — one of the properties subject to de-annexation — is owned by Southport Motorcars president Michael Rhyne. Tolleymon Big Oaks LLC purchased the other two adjacent properties — roughly 0.6 acres on 1222 N. Howe St. and 1221 N. Atlantic Ave. — in November 2023.
Tolleymon Big Oaks is owned by Thomas Tolley, who served Brunswick County Sheriff’s Office for more than two decades before retiring as deputy sheriff last year.
Miller worked at BCSO during the same period as Tolley and retired as chief deputy in 2022. Miller currently works as vice president of security firm Campus Safety Products.
Mosteller noted the parcels are located in Southport’s urban core during the meeting. Large portions of the area were removed from city control after the loss of the ETJ.
Mosteller shared a picture of a for-sale sign at 1226 N. Howe St. — roughly 50 feet away from Tolley’s property — during her presentation. The property was formerly part of Southport’s ETJ but is now in the county’s commercial low density zoning district; the sign notes buyers can now build a five-story building at the location.
In an August letter to the Brunswick County Planning Board, Southport County Manager Stuart Truille described the post-ETJ North Howe Street area as a “jigsaw pattern” of noncontiguous county and city properties. He raised concerns that differences between county and city zoning districts in the city’s corridor entrance could threaten Southport’s small-town charm by enabling high-density development.
Alderman Lowe Davis said the bills are directly tied to the city’s efforts to create an overlay district along Southport’s North Howe corridor entrance.
“Maybe we should change the sign,” she quipped. “‘Welcome to Myrtle Beach.’”
Southport is requesting the county establish an overlay district to guarantee a smooth transition from the city’s traditional neighborhoods to high density county zoning, including lower maximum height limits and requirements for similar building proportions and landscaping in Southport’s urban center.
“We’ve got a lot of people that apparently want to have Southport as part of their name but don’t want to really be part of Southport,” alderman Frank Lai said. “They don’t want to contribute to what makes Southport what it is. They just want their name in front of the place and that’s not right.”
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