Did the NC Supreme Court put cash economic development incentives in jeopardy?

<p>Cash economic development incentives are widely used by local governments to induce companies to locate in their jurisdictions. A 2006 survey indicated that more than 40% of North Carolina local governments employ cash incentives for business recruitment. And yet, no statute contains language specifically authorizing cash incentive payments. G.S. 158-7.1(b) contains a rather comprehensive list of activities in which local governments may engage for economic development, but cash incentives are not found on that list. Rather, authority for cash incentives is derived from a general grant of authority for making appropriations for economic development found in G.S. 158-7.1(a). In other words, the authority to offer cash incentives is implied from a general grant of authority. But what happens when the North Carolina Supreme Court becomes reluctant to find implied authority?</p> <p>That is what happened in the North Carolina Supreme Court’s decision in Lanvale Properties v. County of Cabarrus, 731 S.E.2d 800 (2012), which has been discussed in posts on the Coates’ Canons Local Government Law Blog here and here. In the Lanvale case, Cabarrus County enacted an adequate public facilities ordinance (APFO) to address the provision of schools in the county. Although no statute contains language specifically authorizing such an APFO, the county argued that zoning statutes (G.S. 153A-340 and G.S. 153A-341) convey “implied authority” to the county for an APFO; indeed, G.S. 153A-341 describes broad public purposes to be addressed by county zoning, to include “the efficient and adequate provision of transportation, water, sewerage, schools … and other public requirements.” The county urged [...]</p>