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HomeMy WebLinkAboutZ26-01 PB Staff ReportZ26-01 Staff Report PB 3-5-2026 Page 1 of 13 STAFF REPORT FOR Z26-01 GENERAL USE REZONING APPLICATION APPLICATION SUMMARY Case Number: Z26-01 Request: Rezoning to remove the Special Highway Overlay District (SHOD) Applicant: Property Owner(s): 7650 Market Street, LLC 7650 Market Street, LLC Location: Acreage: 7650 Market Street 1.44 acres PID(s): Comp Plan Place Type: R03600-005-037-000 Community Mixed Use Existing Land Use: Proposed Land Use: Convenience Store with Fuel Stations The property would continue to be allowed to develop in accordance with the B-2 district. Current Zoning: Proposed Zoning: B-2, Regional Business with the SHOD B-2, Regional Business without the SHOD SURROUNDING AREA LAND USE ZONING North An adjacent medical office and vacant commercial property across Market Street B-2 & (CZD) B-2 East Boat storage and self-storage B-2 South Vacant commercial property and the Bayshore Estates Subdivision. B-2 & R-15 West Vacant commercial property and medical and office uses across Market Street B-2 & O&I Z26-01 Staff Report PB 3-5-2026 Page 2 of 13 ZONING HISTORY July 6, 1971 Initially zoned B-2 (Area 5) February 3, 1986 Adoption of the Special Highway Overlay District (SHOD) COMMUNITY SERVICES Water/Sewer The site is currently developed and served by CFPUA water and sewer. Fire Protection New Hanover County Fire Services, New Hanover County Northern Fire District, New Hanover County Castle Hayne Station Schools Ogden Elementary, Holly Shelter Middle, and Laney High Schools Recreation Ogden Park and Pages Creek Preserve CONSERVATION, HISTORIC, & ARCHAEOLOGICAL RESOURCES Conservation The New Hanover County Conservation Resources map does not indicate any conservation resources on the property. Historic No known historic resources Archaeological No known archaeological resources Z26-01 Staff Report PB 3-5-2026 Page 3 of 13 APPLICANT’S PROPOSAL SHOD Map - Market Street • The applicant is requesting to remove the Special Highway Overlay District (SHOD) in order to keep an existing sign that was constructed out of compliance with SHOD specific sign standards on an existing commercial site. By removing the SHOD, the sign would comply with the general development standards for signs and no longer be in violation of the UDO requirements. The request does not include any proposed changes to the underlying B -2 district. • This request is for a straight rezoning, so any approval would allow for all uses outlined for the requested district and could not include conditions. Any future development would be subject to the general development standards for the district outlined in the Unified Development Ordinance (UDO). • The SHOD includes additional restrictions for freestanding signs, setbacks, restrictions on outdoor storage, the location and buffering of commercial parking and loading areas, and lot coverage. • While removing the SHOD would bring the existing sign into compliance with the general sign standards of the UDO, removal of the SHOD would also remove all SHOD requirements and any future changes to the site would not need to comply with the SHOD standard s. SHOD Boundary SHOD Boundary SHOD Boundary 7650 Market St Z26-01 Staff Report PB 3-5-2026 Page 4 of 13 PROJECT HISTORY • The current development was reviewed by the Technical Review Committee in 2020, during which staff advised the applicant that the property was subject to SHOD freestanding sign standards limiting height and size. The applicant acknowledged these requirements in subsequent plan revisions. Building permits issued in 2022 referenced compliance with those standards. • In January 2023, a permit was issued for a freestanding sign that exceeded the allowable height due to staff error. The issue was identified during final inspection. After consultation with the County Attorney’s Office, the applicant was advised that the s ign would need to be brought into compliance and was informed of available options, including seeking a variance. • The applicant applied for a variance, which was heard by the Board of Adjustment in May and June 2023. The Board unanimously denied the request after determining that the required findings of fact were not met, including that no unnecessary hardship specific to the property had been demonstrated, that any hardship was not self-created, and that the request was not consistent with the spirit and intent of the ordinance. • Following that decision, the developer and County reached an agreement in February 2024 allowing the existing sign to remain temporarily in acknowledgement of the property owner’s investment, with the understanding that it would be removed, replaced, or modified to comply with the Unified Development Ordinance within the agreed timeframe. • This application was filed before the agreement expired in February 2026. ZONING CONSIDERATIONS • The B-2 district was established in this area when zoning was applied to the section of Market Street from Bayshore Drive to the Pender County line in 1971. The purpose of the B-2 district is to provide for the proper site layout and development of larger format or larger structure size business uses, including big box stores and automobile dealers. It is also designed to provide for the appropriate location and design of auto-oriented uses that meet the needs of the motoring public or that rely on pass-by traffic. • The SHOD was adopted as an overlay district on certain corridors beginning in 1986 with the intent to protect the natural beauty and scenic vistas along interstate highways and other specially designated roadways that serve as major access and gateways into unincorporated New Hanover County. Currently, the SHOD is along I-40/N College Road north of Martin Luther King, Jr. Parkway, I-140, and Market Street from the Torchwood Boulevard/Bayshore Drive intersection north to the Pender County line. The SHOD has requirements for setbacks, outdoor storage, parking and loading, lot coverage, and signage that are in addition to or supersede the requirements of the base zoning district applied to the property. • Section 3.5.3.D.6 states that in addition to the sign standards in Section 5.6 of the UDO, commercial development in the SHOD is only allowed one freestanding sign with a maximum height of six feet tall and a maximum surface area of 150 square feet. • Removal of the SHOD would allow the site to remove any improvements previously required due to the SHOD without any protection to guarantee those improvements will remain on site. Z26-01 Staff Report PB 3-5-2026 Page 5 of 13 • If approved, the project would be subject to Technical Review Committee and zoning compliance review processes to ensure full compliance with all ordinance requirements . AREA DEVELOPMENTS Z26-01 Staff Report PB 3-5-2026 Page 6 of 13 TRANSPORTATION CURRENT CONDITIONS Intensity of Current Zoning Existing 4,300 square foot convenience store with fuel stations PROPOSED ACCESS Primary Access This site has existing right-in, right-out access onto Market Street with a secondary right-in, right-out access approximately 100 feet north on Market Street. EXISTING ROADWAY CHARACTERISTICS Affected Roadway Market Street Type of Roadway NCDOT principal arterial Z26-01 Staff Report PB 3-5-2026 Page 7 of 13 Roadway Planning Capacity (AADT) 43,000 Latest Traffic Volume (AADT) 37,321 vehicles Latest WMPO Point-in-Time Count (DT) 32,899 north of the site (October 2026) 45,333 south of the site (October 2025) Current Level of Congestion Variable Capacity NEARBY NCDOT STIP ROADAWAY PROJECTS U-4902D – Market Street Improvements - Access management improvements from N. College Road to Station Road and from Middle Sound Loop Road to the Mendenhall Drive / Marsh Oaks Drive intersection. - Installation of a center median and pedestrian accessways along Market Street from Middle Sound Loop Road to Marsh Oaks Drive. The pedestrian accessways will consist of a multi-use path along the north / west frontage of Market Street. TRAFFIC GENERATION Traffic Generated by Current Development Traffic Generated by Proposed SHOD Removal Potential Impact of SHOD Removal AM Peak Hour Trips 332 332 0 PM Peak Hour Trips 278 278 0 Assumptions The site is an existing convenience store with fuel stations allowed by right in the B-2 district and no changes are proposed to the existing use of the site. TRAFFIC IMPACT ANALYSIS (TIA) While TIAs are not required for straight rezonings the property was developed as a convenience store with fuel stations in 2023. Because the site generated more than 100 peak hour trips a TIA was required as part of the development process. Because there is an existing TIA for the site and no changes are anticipated because of the rezoning request, staff has included information about the roadway improvements installed as part of the existing development. Approval Date September 1, 2021 Constructed Improvements Market Street and Alexander Road (north) - No improvements were required. Market Street and Southbound U-Turn - No improvements were required. Z26-01 Staff Report PB 3-5-2026 Page 8 of 13 Market Street and Site Access A (driveway) - Construct a northbound right turn lane on Market Street with 100 feet of storage and 50 feet of taper. - Construct the site access with one ingress and one egress lane, egress is right turn only. - Provide 100 feet of internal protected stem on the westbound approach. - Provide stop control for the westbound approach. Market Street and Site Access B (secondary access) - Construct the site access with one ingress and one egress lane. Egress is right turn only. - Provide 100 feet of internal protected stem on the westbound approach. - Provide stop control for the westbound approach. SUMMARY The proposed project is located along a principal arterial highway that is currently above capacity south of the project area however the project involves an existing commercial site that NCDOT confirmed has installed the improvements required by the TIA to mitigate traffic generated from the site. Given how recently the site was developed staff does not anticipate any changes to the use of the site in the next few years. As a straight rezoning, the removal of the SHOD would not be tied to any specific fut ure development but considering convenience stores with fuel stations are high traffic generators, if the site were redeveloped in the future, staff does not anticipate future uses to trigger additional improvements in the area. ENVIRONMENTAL • This site is not within a Natural Heritage Area or Special Flood Hazard Area. • The New Hanover County Conservation Resources map does not indicate any conservation resources on the property. • The property is within the Pages Creek watershed. • Per the Classification of Soils in New Hanover County for Septic Tank Suitability, soils on the property consist of Class III (severe limitation) soils however the existing development is currently served by CFPUA public water and sewer. Z26-01 Staff Report PB 3-5-2026 Page 9 of 13 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 removal of the SHOD would allow an existing business to maintain an existing freestanding sign on the property. Representative Developments Existing Convenience Store with Fuel Stations Z26-01 Staff Report PB 3-5-2026 Page 10 of 13 7650 Market Street Existing Sign 7650 Market Street Z26-01 Staff Report PB 3-5-2026 Page 11 of 13 Context and Compatibility • The project is an existing developed site that complies with the requirements of the SHOD, with the exception of the freestanding sign. Although the county has previously approved conditional rezonings that removed SHOD standards, those approvals included conditions preserving applicable corridor protections or establishing alternative measures to mitigate potential development impacts. • The property is located along a commercial corridor approximately one-half mile north of where the SHOD begins on Market Street. While the site currently meets SHOD standards and no immediate changes are anticipated, removing the overlay would eliminate the county’s ability to enforce those standards for any future site modifications. • The site is also in close proximity to existing residential development. Although the SHOD is primarily intended to protect the roadway corridor, its additional requirements can also help reduce visual impacts on adjacent properties. Without incorporating SHOD-related protections as conditions of approval through a conditional rezoning, staff cannot ensure that removal of the overlay would avoid adverse impacts to the corridor or surrounding parcels. • 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. It states that development should be attractive, pedestrian- friendly, and designed to reflect a high quality of place, with attention to buffering and transitions that protect nearby neighborhoods. 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. Z26-01 Staff Report PB 3-5-2026 Page 12 of 13 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, and multi-family and single-family residential. Analysis This area is classified as Community Mixed Use by the 2016 Comprehensive Plan which is intended to foster commercial growth to serve nearby residential areas. The property is located along a commercial corridor approximately one-half mile north of where the SHOD begins on Market Street. While the site currently meets SHOD standards and no immediate changes are anticipated, removing the overlay would eliminate th e county’s ability to enforce those standards for any future site modifications. The site is also in close proximity to existing residential development. Although the SHOD is primarily intended to protect the roadway corridor, its additional requirements can also help reduce visual impacts on adjacent properties. And while the 2016 Comprehensive Plan does not specifically address the Special Highway Overlay District, the Community Mixed Use place type was specifically applied to sections of the Market Street corridor to act as an attractor for county residents and visitors. Without incorporating SHOD-related protections as conditions of approval through a conditional rezoning, staff cannot ensure that removal of the overlay would avoid adverse impacts to the corridor or surrounding parcels. Consistency Recommendation The removal of the Special Highway Overlay District without conditions established to address the district’s design requirements is generally INCONSISTENT with the 2016 Comprehensive Plan because the requested straight rezoning would remove standards intended to ensure Market Street acted as an attractor for county residents and visitors for a parcel designated as the Community Mixed Use place type without adequate alternative guarantees for those ordinance protections. Z26-01 Staff Report PB 3-5-2026 Page 13 of 13 STAFF RECOMMENDATION Staff’s recommendation is based on the policy guidance of the 2016 Comprehensive Plan and zoning considerations. Staff would have preferred a conditional rezoning because the site is located along a major arterial route into the county and in close proximity to existing residential development. Although the SHOD is primarily intended to protect the roadway corridor, its additional requirements can also help reduce visual impacts on adjacent properties. Without incorporating SHOD-related protections as conditions of approval through a conditional rezoning, staff cannot ensure that removing the overlay would avoid adverse impacts to the corridor or surrounding parcels. As a result, Staff recommends denial of the proposal and suggests the following motion: I move to RECOMMEND DENIAL of the proposed request to remove the Special Highway Overlay District (SHOD). I find removal of the SHOD without conditions to address the district’s design requirements it to be generally INCONSISTENT with the 2016 Comprehensive Plan because the requested straight rezoning would remove standards intended to ensure Market Street acted as an attractor for county residents and visitors for a parcel designated as the Community Mixed Use place type without adequate alternative guarantees for those ordinance protections. I also find RECOMMENDING DENIAL of the rezoning request is reasonable and in the public interest because removal of the SHOD standards could allow for additional impacts to nearby residential development. Alternative Motion for Approval (if based on information presented at the public hearing or other consideration beyond the scope of staff review, the Board finds approval appropriate.) I move to RECOMMEND APPROVAL of the proposed rezoning. I find the request to be CONSISTENT with the purposes and intent of the 2016 Comprehensive Plan because the requested straight rezoning would remove standards to potentially encourage future commercial redevelopment of the site in line with the goals of the Community Mixed Use place type. I also find RECOMMENDING APPROVAL reasonable and in the public interest because the existing site development has not resulted in unreasonably negative impacts on surrounding development given the commercial nature of the Market Street corridor.