The Albemarle City Council on Monday evening passed a motion for a hearing regarding the annexation of a 12-acre portion of property along Morgan Road that’s part of a proposed subdivision.

Carolina Development Services’ subdivision would involve three to four phases over a five-year span.

The annexation would be part of Phase 1 of a master plan to have roughly 500 lots on Morgan Road. Carolina Development Services would build the homes.

There would be 43 lots for Phase 1, according to Michael Sandy, who presented the proposal to the council. He works for Carolina Development Services.

The subdivision would have 168 acres, of which 90 would be open space.

The cost of the homes would be $160,000 to $210,000. Sandy estimated that at the current tax rate of 64 cents, the proposed development would equate annually to $460,000 in new real property taxes.

According to the presentation for phase 1, each lot would be 4,200 square feet.

Carolina Development Services has employed Ramey Kemp, a Raleigh-based transportation consulting firm, to perform a transportation analysis to see what traffic impacts would be created with the proposed development.

The proposed development would offer benefits to Albemarle and Stanly County, Sandy said, including sales tax revenue with expansion of the tax base and new citizens contributing to the city’s growing local businesses and services and housing for the working and middle class services.

“I’m tickled to death that someone’s showing enough confidence in our economy and our future to be talking about this sort of thing,” said Councilman Chris Bramlett.

The public hearing will be July 8.

In other news:

• The council recommended the city staff make specific animal regulations. This was after the council received several comments from citizens asking to both relax and tighten current animal restrictions.

Kevin Robinson, director of the city’s planning and development services, looked at restrictions in other local municipalities and offered the council modifications the city could make such as allowing small pigs less than 24 inches in height to be kept as pets in the city limits.

The council wanted Robinson to create specific guidelines for several animals including pigs, chickens and roosters.

• The council passed a resolution seeking the N.C. Local Government Commission’s approval for the financing of the police headquarters project. The city is considering entering into an installment financing agreement with Pinnacle Bank in an amount not to exceed $4.1 million. The loan would have a fixed interest rate of 3.55 percent and a 1 percent fee due at closing.

The new police headquarters will be at 155 W. South St. It will be 8,220 square feet, which will be twice the size of the current headquarters, which is 4,024 square feet, according to Assistant Police Chief Jesse Huneycutt.

• The council passed a proposal to rename Barnard Street to Hilco Street.

• The council accepted a parcel of land on South Second Street adjacent to Rock Creek Park that was donated to the city by David Emmons.