SOUTHPORT — A dispute over the city alleyways returned to the center of discussion last week in Southport — almost eight months after the issue was first brought up over Mayor Joe Hatem’s claim on the right-of-way beside his property. After a comprehensive review of all of Southport’s alleyways, the city is doubling down in its assertion that it owns the one at 109 E. Owens St.
City staff compiled a list of about 30 city owned alleyways in total and noted only four are abandoned:
- Between North Howe St. and Lord St., between Ninth and 10th streets
- Between N. Howe Street and Atlantic Avenue from Owens to Leonard streets
- Between N. Howe Street and N. Lord Street behind the Southport Fire Station, closed to accommodate the building; and
- Between 11th Street and Trevally Court
READ MORE: Southport alleyway debacle: Alderman, former mayor allege political motives, misuse of funds
ALSO: ‘Political fireball’: Southport enters legal battle with former mayor over alleyway ownership
An anonymous source familiar with the matter noted the city is asking the Hatems to rescind their declaration of withdrawal regarding the alleyway. The previous owners of the Hatems’ house originally filed the declaration with the Register of Deeds and transferred it to the Hatems in 2020.
The source added the city also wants to enter into an encroachment agreement that would allow preservation work to be done on the house as needed and the city would recognize the property’s conditions as pre-existing.
Alderman Lowe Davis first proposed staff conduct a comprehensive review of the alleyway layout at the board’s Feb. 12 session because none had ever been conducted in the city, despite consistent conversations on the matter.
Davis presented staff findings during discussion at the April 9 meeting, noting staff detailed a need for alleyways to be better maintained by the city, the costs to do so, and if private property is encroaching from the area’s historic homes.
The Hatems’ house is 1,049 square feet and reaches into the 10-foot wide alleyway. The house was built about a century ago, before the city established a code of ordinances. Conflict first arose over the 109 E. Owens St. alleyway when John Langley, owner of Southport Sourdough, Bakery and Fresh Market, spoke to the aldermen last September. He detailed the bakery wanted to use the right-of-way for deliveries, but when Langley attempted to do so, he said he was confronted by Anita Hatem, who presented a declaration of withdrawal.
Under North Carolina law, a property can be claimed with a declaration of withdrawal if the property has been abandoned for 15 years or more. While no documentation of the abandonment was provided upon the Hatems’ filing, according to documents, the mayor previously told Port City Daily the alleyway was unused and uncared for by the public, which he took up since his house intruded on it.
Under state statute, the transfer of alley ownership requires a board of aldermen vote, a public hearing, and a resolution, but that did not occur.
At the meeting this week, Alderman Paul Gross pointed out North Carolina General Statute 160A‑296, doubling down that the city will have authority over all public alleys, streets, bridges, sidewalks and rights-of-way unless owned by the North Carolina Department of Transportation. The statute also defines a city’s duty in maintaining the public passageways — in proper repair, open for travel, and unobstructed.
However, the city has received complaints from residents about overgrowth in alleyways. Davis told the alderman it’s a common occurrence, with staff reporting alleyways are often unkempt to the point of being “impassable,” as well as in violation of the city’s own ordinances.
The staff report acknowledged an outside contractor will need to be hired in order to clear all of the rights-of-way. This could cost roughly $10,000 an acre; Port City Daily asked the city how many acres would need to be cleaned up in total, but did not hear back by press.
In the same report, staff also recommended residents maintain alleyways near their homes, with the exclusion of adding hardscaping or additional structures into the space. Yet, the city would still retain ownership of the property.
The issue of alleyway maintenance has ultimately been pushed off to garner public feedback, but the date of an upcoming workshop has not been announced.
Aldermen go into closed session
The city entered closed session at the April 9 meeting, with Mayor Hatem recusing himself.
“I have one conflict,” he announced before the board. “That will be concerning an alley issue.”
Port City Daily reached out to the mayor to ask if he will enter into the encroachment agreement with the city and rescind the declaration of withdrawal.
“Our title insurance company will handle that,” he answered. “We’re really not in the decision-making part of that.”
Hatem didn’t state whether if he would maintain the alleyway still, despite the city’s declaration of ownership.
An anonymous source familiar with the matter told Port City Daily the city attorney, Brady Herman, also recused himself from closed session. The City of Southport, instead, has hired Amy Schaefer from Lee Kaess PLLC, State Senator Michael Lee’s firm, and spent upward of $20,000 on representation to date, the source indicated.
Port City Daily reached out to the city to confirm Schaefer has been retained but spokesperson ChyAnn Ketchum wrote in an email: “At this time, I have no additional information to share regarding the alleyway discussions.”
The alleyway debacle was further complicated last fall, when Paul Winter, Alderman Gross’ brother-in-law and a neighboring property owner to the Hatems, spoke at an aldermen meeting two months before the 2025 council and mayoral election. Gross, who was on the ballot in November, was a member of former Mayor Rich Alt’s Common Sense Coalition.
The incident kicked off a two-month long political dispute about public access regarding alleyways — which Davis called a “political fireball” so close to the municipal elections. Former Mayor Rich Alt was facing off against Hatem, who served as Southport mayor from 2019-2023; Hatem lost to Alt in 2023, though the tides turned last fall, when Hatem reclaimed his seat.
Yet, it also brought up concerns about bureaucratic processes and transparency, leading staff to review Southport’s history with declarations of withdrawals.
At last September’s aldermen meeting, Winter said he wanted to use the alley behind the Hatems’ house for a back entrance to a North Atlantic Avenue property he plans to develop. Winter also commented there was active construction ongoing in the alleyway, which blocks it off from public use.
The anonymous source told Port City Daily that Gross wanted to take “punitive” measures against the Hatems, either by removing the portion of their house in the alleyway or forcing the couple to give another plot of land in similar value to the city.
Port City Daily reached out to Gross to confirm he suggested alternative measures beyond rescinding a declaration of withdrawal and entering an encroachment agreement. He wrote in response: “I can not disclose conversations which take place in closed session. Thank you for understanding.”
The matter of historic homes encroaching on rights-of-way and violating the city’s code is a common occurrence in Southport, Aldermen Davis and Robert Carroll said during open session on April 9. Davis pointed to an example, in resident Cornelia Rogers, who owned a historic home with a screen porch that hovered into the public right-of-way. Rogers wanted to convert the porch into a sunroom.
She went back and forth with the board of adjustment before turning to the board of aldermen; both turned down Rogers’ request. The city and boards decided, ultimately, a resident cannot add or enhance an already existing encroachment.
“I drove by there the other day,” Davis said of the home. “It’s still a screened porch.”
While the example presented by Davis did not relate to an alleyway, she noted all alleys were rights-of-way. Even though residents in historic homes cannot be expected to upend the pre-existing structure, the city can dictate what happens in the right-of-way after a code is adopted — such as allowing the public to traverse the alleyway.
Winter also spoke at the Thursday meeting to further stress how the public wanted access to the pathway on 109 E. Owens St.
“There was a lot of talk about it at the time — people were talking about political hit jobs — whatever. That’s not the case,” Winter said. “I and others still want that alley opened.”
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