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HomeMy WebLinkAboutPlanning Board Staff Report - FinalZ17-05M Staff Report PB 3-5-2026 Page 1 of 19 STAFF REPORT FOR Z17-05M CONDITIONAL REZONING APPLICATION APPLICATION SUMMARY Case Number: Z17-05M Request: Modification of an existing Conditional B-2 district Applicant: Property Owner(s): Cindee Wolf with Design Solutions 6144 Carolina Beach Road, LLC Location: Acreage: 5301, 5307, 5311 Castle Hayne Road 3.19 PID(s): Comp Plan Place Type: R01100-012-001-002, R01100-012-001-000, R01100-012-001-001 Community Mixed Use Existing Land Use: Proposed Land Uses: Former Fire Station 13 and vacant land A mix of commercial uses including general retail, vehicle sales, and indoor recreation. See the requested land uses by parcel in the project description and listed conditions. Current Zoning: Proposed Zoning: (CZD) B-2, Regional Business (CZD) B-2, Regional Business SURROUNDING AREA LAND USE ZONING North Jung’s Egg Roll Express Restaurant, vacant commercial property B-2 East Detached Single-Family Residential across Castle Hayne Road R-15 South Office for Private Business and Professional Activities O&I West Detached Single-Family Residential RA Z17-05M Staff Report PB 3-5-2026 Page 2 of 19 ZONING HISTORY July 1, 1985 Initially zoned RA (Castle Hayne) February 1, 1988 5301 and 5307 Castle Hayne Road (2.08 acres) rezoned to O&I. February 7, 1994 5311 Castle Hayne Road rezoned to O&I. August 21, 2017 5301, 5307, and 5311 rezoned to (CZD) B -2 COMMUNITY SERVICES Water/Sewer Public water and sewer are not available in the area. 5311 Castle Hayne Road has an existing septic system. Development at 5301 Castle Hayne Road will be required to install a new septic system and well. Fire Protection New Hanover County Fire Services, New Hanover County Northern Fire District, New Hanover County Castle Hayne Station 13 Schools Castle Hayne Elementary, Holly Shelter Middle, and Laney High Schools Recreation Northern Regional Park, Riverside Park CONSERVATION, HISTORIC, & ARCHAEOLOGICAL RESOURCES Conservation No known regulated conservation resources. Historic No known historic resources Archaeological No known archaeological resources Z17-05M Staff Report PB 3-5-2026 Page 3 of 19 APPROVED CONCEPTUAL PLAN Approved Concept Plan - Includes Staff Markups NHC Fire Station 13 Garden Place Drive Roundabout No Approved Development 5311 Castle Hayne 5307 Castle Hayne 5301 Castle Hayne Garage Contractor Office Septic Area Stormwater Z17-05M Staff Report PB 3-5-2026 Page 4 of 19 • The three parcels at 5301, 5307 and 5311 Castle Hayne Road were rezoned from O&I to (CZD) B-2 in 2017. At the time, 5301 and 5307 Castle Hayne Road were vacant, undeveloped commercial parcels and 5311 Castle Hayne was Fire Station 13. • The 2017 rezoning preserved the existing development pattern of the northern parcels, maintaining fire station as an approved use for 5311 Castle Hayne and restricting future development on 5307 Castle Hayne Road. • The southernmost parcel at 5301 Castle Hayne was approved for a contractor office with outdoor storage. The contractor office was oriented towards and accessed from Garden Place Drive and provided an open porch facing Castle Hayne Road as an architectural design element facing the highway. A fenced Type A opaque buffer was proposed along the western boundary with existing residential development. • Each parcel has the following specific land use restrictions: o 5301 Castle Hayne was limited to warehousing and contractor office. o 5307 Castle Hayne did not allow any changes to the current use or existing conditions as vacant property. o 5311 Castle Hayne did not propose any changes to the site and the land use was limited to the land use “government offices and buildings” which included emergency services facilities at the time. • The project also included a public access easement along the Castle Hayne Road frontage of all three lots. • Because of the conditional B-2 zoning restrictions, the site would require a major modification of the zoning district approved through the public hearing process to allow other land uses or to change the site design. Z17-05M Staff Report PB 3-5-2026 Page 5 of 19 APPLICANT’S PROPOSED MODIFICATIONS Applicant’s Proposed Concept Plan Modifications - Includes Staff Markups Garden Place Drive Prince George Place Roundabout Outdoor Storage Former NHC Fire Station 13 5311 Castle Hayne 5307 Castle Hayne 5301 Castle Hayne Shared Stormwater Outdoor Storage Septic Area Ca s t l e H a y n e R d Z17-05M Staff Report PB 3-5-2026 Page 6 of 19 • In 2022 all three parcels were acquired by the same owner. And in 2025 emergency services were moved from Station 13 to the new fire station that opened at 4860 Castle Hayne Road. • The proposed concept plan maintains the overall design of the previously approved plan. The primary differences are related to an expanded list of allowed uses for each parcel and a shared stormwater management system. • No changes are proposed to the previously approved location of buildings and all previously approved conditions of development will still apply. In addition to the expanded land uses, the applicant has proposed additional conditions related to exterior lighting and proposes the stormwater pond be designed for a 100-year storm. • The following are the significant changes to each parcel: o 5301 Castle Hayne Road maintains the 4,800 square foot commercial building accessed from Garden Place Drive. The plan also shows the currently approved outdoor storage on the western side of the property. The modifications are limited to shifting the stormwater north to 5307 Castle Hayne Road, moving the septic area south towards Garden Place Drive and expanding the list of allowable uses to include the following in addition to the use of Contractor Office. A condition has been included limiting the allowed land uses specifically for 5307 Castle Hayne Road: ▪ Wholesale Nursery ▪ Business Service Center ▪ Repair Shop ▪ Offices for Private Business and Professional Activities ▪ Instructional Services and Studios ▪ Personal Services ▪ Retail Nursery o 5307 Castle Hayne Road is proposed with a shared stormwater management system on the western side of the property adjacent to the neighboring residential development with a fenced outdoor storage area in the center and eastern portion of the site. The storage area includes a solid privacy fence facing Castle Hayne Road. A condition has been included guaranteeing the solid privacy fence as a visual buffer. While the stormwater pond will be shared by all three parcels, the proposed storage area is only accessible from 5311 Castle Hayne Road to the north. o 5311 Castle Hayne Road does not include any changes to the layout of the existing structures or access. The only modifications are the access to the outdoor storage area of 5307 Castle Hayne to the south and the expanded list of allowed uses proposed as: Z17-05M Staff Report PB 3-5-2026 Page 7 of 19 ▪ Wholesale Nursery ▪ Animal Shelter ▪ Community Center ▪ Food Pantry ▪ Emergency Services Facility ▪ Government Offices and Buildings ▪ Indoor Recreation Establishment ▪ Business Service Center Repair Shop ▪ Contractor Office ▪ Offices for Private Business and Professional Activities ▪ Instructional Services and Studios ▪ Personal Services ▪ Retail Nursery ▪ Retail Sales, Building and Construction Supplies ▪ Retail Sales, General ▪ Boat Dealer Equipment Rental and Leasing ▪ Farm Implement Sales ▪ Vehicle Rentals ▪ Vehicle Sales ▪ Vehicle Service Station, Minor ▪ Warehousing • While included on the 2017 concept plan and binding on future development of the site, staff has included written conditions to ensure those concept plan site features are provided in future development. These include the pedestrian access easement along Castle Hayne Road, the fenced buffer along 5301 and 5307 Castle Hayne Road, and the porch on the eastern side of the building at 5301 Castle Hayne Road. • In addition, new conditions have been included to reflect the changes proposed with the modification which include a requirement for a shared maintenance and access agreement for the stormwater, the fenced Type A opaque buffer on the western side of 5307 Castle Hayne Road, and applicant conditions requiring the stormwater system be designed for a 100-year storm event, and exterior lighting. ZONING CONSIDERATIONS • The site was originally zoned RA in 1985. At the time the RA district was intended to keep residential densities low due to the lack of public water and sewer. • Between 1988 and 1994 the three parcels were rezoned to O&I which is intended to provide areas that accommodate institutional, professional office, and other compatible uses to support economic clusters. At the time, the location and development pattern of the Castle Hayne area supported a transition to a low intensity commercial district on the southern side of the main Castle Hayne commercial area. • The (CZD) B-2 district was approved in 2017 to allow the development of a contractor office at 5301 Castle Hayne Road. The rezoning also included two additional parcels that were not proposed for additional development but provided the appropriate zoning transition between existing B-2 zoning to the north and O&I zoning south of Garden Place Drive. • As currently zoned the site is limited to a contractor office on 5301 Castle Hayne and government facilities at 5311 Castle Hayne. The proposed modification would expand the list of allowed uses to provide flexibility for future development. Z17-05M Staff Report PB 3-5-2026 Page 8 of 19 • A Type A opaque buffer is required along the western boundary of all three parcels adjacent to existing residential development. The applicant included a condition for a fenced buffer at 5301 and 5307 and the preservation of the existing vegetated buffer at 5311 Castle Hayne Road. • The maximum building height in the B-2 district is three stories or 50 feet. • 5301 Castle Hayne Road is considered a corner lot with double frontage on Garden Place Drive and Castle Hayne Road. As proposed on the concept plan, there will be a 35 -foot structure setback from the property line adjacent to neighboring residential. • Any exterior dumpsters visible from the right-of-way are required to be screened. And new landscaping will be required for new development at 5301 and 5307 Castle Hayne Road, including street yard landscaping. Future landscaping for 5311 Castle Hayne will be dependent on when the property changes use and if any additional minor deviations are proposed such as the interior of the parking area. • If approved, the project would be subject to Technical Review Committee and zoning compliance review processes to ensure full compliance with all ordinance requirements and specific conditions included in the approval. Only minor deviations from the appro ved plan may be administratively approved by Planning staff. Z17-05M Staff Report PB 3-5-2026 Page 9 of 19 AREA DEVELOPMENTS Z17-05M Staff Report PB 3-5-2026 Page 10 of 19 TRANSPORTATION CURRENT CONDITIONS Intensity of Current Zoning Typical development under current zoning would allow a government building (former fire station) and a contractor office. PROPOSED ACCESS Primary Access Castle Hayne Road Secondary Access Garden Place Drive and Prince George Avenue EXISTING ROADWAY CHARACTERISTICS Affected Roadway Castle Hayne Road Prince George Ave Garden Place Drive Dead End Access for 5301 Castle Hayne Access for 5311 Castle Hayne Access for 5311 Castle Hayne Z17-05M Staff Report PB 3-5-2026 Page 11 of 19 Type of Roadway NCDOT principal arterial Local Road Local Road Roadway Planning Capacity (AADT) 8,401 4,000 4,000 Latest Traffic Volume (AADT) 11,000 N/A N/A Latest WMPO Point-in-Time Count (DT) 11,454 (August 2025) N/A N/A Current Level of Congestion Above Capacity N/A N/A NEARBY NCDOT STIP ROADAWAY PROJECTS U-5863 – Castle Hayne Road Widening • Widen Castle Hayne Road into multi-lanes from I-140 to Division Drive. • Project is currently unfunded. TRAFFIC GENERATION Traffic Generated by Present Designation Traffic Generated by Proposed Designation Potential Impact of Proposed Designation AM Peak Hour Trips 12 22 +10 PM Peak Hour Trips 16 27 +11 Assumptions Typical Development with Existing Conditions – Fire Station and Contractor Office Proposed Development – 6,954 square feet of general retail with outdoor storage and 4,800 square foot contractor office. Sources Source of Trip Generation: ITE Trip Generation Manual, 11th Ed. TRAFFIC IMPACT ANALYSIS (TIA) The estimated traffic generated from the site is under the 100 peak hour threshold that triggers the ordinance requirement for a Traffic Impact Analysis (TIA). SUMMARY The proposed project is located along a principal arterial highway that is currently nearing capacity. The site is west of the Castle Hayne Road roundabout which provides access south to College Road, north to Holly Shelter Road, the I-140 interchange, and Pender County. 5311 Castle Hayne Road has two existing driveways and 5301 proposes to maintain access onto Garden Place Drive. The proposed project’s peak hour traffic is below the 100 peak hour threshold requiring a traffic impact analysis, but NCDOT will review the project through the driveway permitting process. Z17-05M Staff Report PB 3-5-2026 Page 12 of 19 ENVIRONMENTAL • New Hanover County Engineering indicates there is historic downstream flooding from the project area and has been in communication with the applicant on potential mitigation actions to assist with area drainage. Engineering has identified the need for two downstream analyses for new DOT culverts under Garden Place Drive. One in the southwest corner of 5301 Castle Hayne Road and the second located approximately 900 feet west of the intersection of Castle Hayne Road and Garden Place Drive as shown on the map above. • Engineering stated that if feasible, an infiltration basin is the preferred stormwater control measure with outfall to the existing eastern DOT right-of-way drainage infrastructure near the intersection of Castle Hayne Road and Garden Place Drive. A secondary option is for the stormwater control measure outfall via a new culvert described in Condition 12. • Staff worked with the applicant on an agreed condition addressing the downstream analyses and the preferred stormwater control measures to facilitate to improved drainage. • The parcels are not within a Natural Heritage Area or Special Flood Hazard Area. • The property is within the Prince George Creek watershed. • The New Hanover County Conservation Resources map does not indicate any conservation resources on the parcels. • Per the Classification of Soils in New Hanover County for Septic Tank Suitability, the western portion of the parcels are primarily Class I (suitable) soils while the area along Castle Hayne Road is Class II (moderate) soils. Due to the lack of public sewer in the area, the fire station site is served by an existing septic system, and any future development of 5301 Castle Hayne Road will require a new septic system. Ca s t l e H a y n e R d Project Area Roundabout Z17-05M Staff Report PB 3-5-2026 Page 13 of 19 OTHER CONSIDERATIONS New Hanover County Strategic Plan On July 17, 2023 the Board of Commissioners adopted a new strategic plan for Fiscal Years 2024-2028. This plan focuses on three core areas: workforce and economic development, community safety and well-being, and sustainable land use and environmental stewardship. Strategic Plan Outcomes Relevant to Proposal Analysis A business-friendly environment that promotes growth, agility, and collaboration. The proposed modifications to the existing (CZD) B-2 district would allow for additional commercial land uses that could help achieve the target of maintaining new business growth within 2.5% of the state. Z17-05M Staff Report PB 3-5-2026 Page 14 of 19 Representative Developments Existing Fire Station Building Former Fire Station 13 – 5311 Castle Hayne Road Representative Development of Retail Sales, General Ace Hardware in Wrightsboro Z17-05M Staff Report PB 3-5-2026 Page 15 of 19 Representative Development of Contractor Office North Kerr Industrial Park Context and Compatibility • The site is located adjacent to the Castle Hayne roundabout, which provides direct access south along Castle Hayne Road and College Road, and north toward Holly Shelter Road, the I- 140 interchange, and Pender County. • The property is immediately adjacent to an existing restaurant and just south of a range of commercial uses along the Castle Hayne Road corridor, including a grocery store, convenience stores, a pharmacy, and mini-storage facilities. • Although this portion of Castle Hayne has historically included a mix of residential and commercial development, recent years have shown a trend toward commercial rezonings supporting similar corridor-oriented uses. • Due to the property’s location and the lack of public sewer service, residential redevelopment is unlikely; however, the current conditional zoning also limits the range of commercial uses that may be established, constraining the site’s redevelopment potential under its existing approval. Z17-05M Staff Report PB 3-5-2026 Page 16 of 19 • While the requested modification expands the list of allowed uses, given the site’s previous use as an emergency services facility, which can include heavy vehicle traffic and sirens during the day or night, the proposed uses are anticipated to create less impact on neighboring residential development. • The project also includes conditions intended to mitigate potential impacts by providing visual buffers, architectural design elements facing the Castle Hayne roundabout, a pedestrian easement for future connectivity, and a stormwater management system designed above minimum requirements. • While the 2016 Comprehensive Plan recommends a mixture of commercial and residential uses, over the past two years as staff has worked on the Destination 2050 Comprehensive Plan update, the vision for the main corridors through the county has shifted to discouraging higher density residential projects to protect the character of adjacent existing neighborhoods and in recognition of limited roadway connectivity. In the draft plan, commercial development is encouraged along this corridor to provide basic goods and services to existing residents. 2016 COMPREHENSIVE PLAN The New Hanover County Future Land Use Map provides a general representation of the vision for New Hanover County’s future land use, as designated by place types describing the character and function of the different types of development that make up the c ommunity. These place types are intended to identify general areas for particular development patterns and should not be interpreted as being parcel specific. Future Land Use Map Place Type Community Mixed Use Place Type Description Focuses on small-scale, compact, mixed use development patterns that serve all modes of travel and act as an attractor for county residents and visitors. Types of appropriate uses include office, retail, mixed use, recreational, commercial, institutional, multi-family, and single-family residential. Z17-05M Staff Report PB 3-5-2026 Page 17 of 19 Analysis The 2016 Comprehensive Plan designates the subject properties as Community Mixed Use, a category intended to promote small-scale, compact, mixed-use development that accommodates all modes of transportation and serves as a destination for both county residents and visitors. The proposed rezoning modification would broaden the range of permitted uses to include retail, personal services, and other neighborhood -supporting commercial activities. These additional uses are intended to serve nearby residents and align with the mix of uses envisioned by the Comprehensive Plan. Although public water and sewer services are not currently available to the site, the proposed development would require only one additional septic system. Historically, this portion of Castle Hayne contains a mix of residential and commercial uses. In recent years, the area has been transitioning toward more intensive commercial zoning classifications, including the B-2 district. The requested modification is consistent with this broader pattern of commercial growth. While the amendment expands the list of allowable uses, the site’s prior operation as an emergency services facility—which involved heavy vehicle traffic and the potential for sirens at all hours—suggests that the proposed uses are likely to generate fewer impacts on adjacent residential properties. Given the continued commercial growth anticipated in the Castle Hayne area and the proximity of established residential development, the application includes several conditions designed to mitigate potential impacts on neighboring properties. Consistency Recommendation The proposed modifications to the (CZD) B-2 district are generally CONSISTENT with the 2016 Comprehensive Plan because the proposed uses are generally encouraged in the Community Mixed Use place type to serve nearby residential development. STAFF RECOMMENDATION Staff’s recommendation is based on the policy guidance of the 2016 Comprehensive Plan, zoning considerations, and technical review. The site was approved in 2017 as a conditional B-2 district; however, that approval limited the project to two specific land uses. The current request does not alter the approved location or orientation of the previously approved structures but does propos e a new outdoor storage area and expanded range of permitted uses. To address potential impacts associated with the broader list of uses, the applicant proposes additional conditions related to drainage, stormwater management, buffering, and visual impacts along the Castle Hayne Road corridor. Considering the ongoing commercial growth in the Castle Hayne area and the site’s proximity to established residential neighborhoods, allowing greater flexibility in permitted uses would enhance opportunities to provide community-scale services to surrounding residents while maintaining appropriate protections for adjacent properties. Z17-05M Staff Report PB 3-5-2026 Page 18 of 19 As a result, Staff recommends approval of the proposal and suggests the following motion: I move to RECOMMEND APPROVAL of the proposed rezoning. I find it to be CONSISTENT with the 2016 Comprehensive Plan because the proposed uses are generally encouraged in the Community Mixed Use place type to serve nearby residential development. I also find RECOMMENDING APPROVAL of the rezoning request is reasonable and in the public interest because the modification would expand the ability for future development on the site and the following proposed conditions would help mitigate potential impacts on nearby residential development: Proposed Conditions: 1. An eight-foot-high wood screening fence, with a double row of evergreen shrubs, will be installed along the common property line of 5301 and 5307 Castle Hayne Road with the residential lots to the west. 2. Exterior lighting, including luminaries, shall be full cut-off fixtures that are directed downward in compliance with Figure 5.5.4.C Full Cut-off Fixtures of the Unified Development Ordinance. 3. A 20-foot-wide public access easement shall be recorded along the frontage parallel with Castle Hayne Road for future bicycle and pedestrian infrastructure. 4. An open porch shall be built on the eastern side of the building at 5301 Castle Hayne Road as shown on the concept plan. 5. A minimum six-foot-tall solid privacy fence shall be installed along the western side of the outdoor storage area at 5307 Castle Hayne Road. The fence or visual barrier cannot be a chain-link fence with slats. 6. Land uses for 5301 Castle Hayne Road shall be limited to: a. Wholesale Nursery b. Business Service Center c. Repair Shop d. Offices for Private Business and Professional Activities e. Instructional Services and Studios f. Personal Services g. Retail Nursery h. Contractor Office 7. Land uses for 5307 and 5311 Castle Hayne Road shall be limited to: a. Wholesale Nursery b. Animal Shelter c. Community Center d. Food Pantry e. Emergency Services Facility f. Government Offices and Buildings g. Indoor Recreation Establishment h. Business Service Center i. Repair Shop j. Contractor Office Z17-05M Staff Report PB 3-5-2026 Page 19 of 19 k. Offices for Private Business and Professional Activities l. Instructional Services and Studios m. Personal Services n. Retail Nursery o. Retail Sales, Building and Construction Supplies p. Retail Sales, General q. Boat Dealer r. Equipment Rental and Leasing s. Farm Implement Sales t. Vehicle Rentals u. Vehicle Sales v. Vehicle Service Station, Minor w. Warehousing 8. The project shall obtain state and county stormwater permits, to include any required downstream analyses and the stormwater management will be designed for the 100- year storm attenuation. Alternative Motion for DENIAL (if based on information presented at the public hearing or other consideration beyond the scope of staff review, the board finds denial appropriate.) I move to RECOMMEND DENIAL of the proposed rezoning. While I find it to be CONSISTENT with the purposes and intent of the Comprehensive Plan because the proposed uses are generally encouraged in the Community Mixed Use place type to serve nearby residential development, I find RECOMMENDING DENIAL of the rezoning request is reasonable and in the public interest because while the project includes conditions to mitigate visual and drainage impacts, the overall impact of the range of uses will negatively affect adjacent residential development and the Castle Hayne roundabout.