NEW HANOVER COUNTY — A major residential project in Castle Hayne, quiet since its 2023 rezoning, is finally moving through the county’s review pipeline.
Known as Swartville, the proposed subdivision — located off of Castle Hayne Road and adjacent to I-140 — is seeking preliminary plan approval from the county’s technical review committee to construct 292 detached single-family homes on 89.9 acres. Managed by local developers Joel and Ross Tomaselli of Sea Horse Development, the project is part of a wave of development in the northern end of the county.
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The Tomasellis have long been involved in New Hanover County development, with father Joel Tomaselli recognized as the developer behind Lumina Station, a shopping center near Wrightsville Beach and the Laurel Lea subdivision in Porters Neck.
If site plans are approved, the Swartville development would join a surge of residential growth in northern New Hanover. The Castle Hayne corridor is anchored by Sidbury 187’s 1,754 single-family homes and duplexes project by D.R. Horton on Sidbury Road and the continued build-out of the adjacent Sidbury Station neighborhoods less than a mile away, which host 750 single-family homes across initial phases.
Also looming is the proposed Hilton Bluffs project on the Sledge Forest property. The 4,000-acre tract could welcome 4,000 units, though plans submitted towards the end of 2025 suggest an initial build-out of 1,800.
Formerly a rural tract, the Swartville property was rezoned by county commissioners in 2023 from R-20 residential zoning to R-7 moderate- to high-density district. County planning staff’s project summary details the R-20 district in the Castle Hayne Road corridor was established in 1972 to ensure housing served by private septic and wells would be developed at low densities. As the county has grown, water and sewer services from the Cape Fear Public Utility Authority have been extended incrementally into parts of Castle Hayne; yet, much of the land remained primarily zoned for low-density use.
The shift to R-7 aligns with the county’s future land use map, which targets the area for infill development to better utilize existing utility infrastructure and manage the region’s rapid population growth. According to a 2025 housing needs assessment conducted by Root Policy Research, New Hanover County is projected to need roughly 21,000 new residential units over the next decade to accommodate demand.
The previous R-20 rules would have capped the project at about 198 units, while the current R-7 zoning permits up to 471 single-family homes. The Swartville proposal for 292 homes in total is seeking just over half of the density technically allowed.
Seeing as the property was rezoned nearly three years ago, developer Ross Tomaselli explained to Port City Daily there were no hiccups, but the development team was taking their time with Swartville to ensure it was built right. He said the choice to scale back from the maximum allowable density was intentional, aiming for the 35 acres of proposed open space to serve as an amenity for future residents.
“We’ve owned this for coming up on 20 years now,” Tomaselli said. “We can afford to be patient with this and make sure we get it the way we want it before moving forward.”
At this stage, the preliminary site plans can change as the proposal moves through the county’s review process. Staff went over the technical requirements at a Feb. 4 TRC meeting. Their comments focused on utilities and roadway infrastructure and highlighted the project’s environmental constraints regarding conservation and stormwater runoff.
Among those limitations is the land itself. According to county soil maps, 11.3 acres of the property contains Pamlico and Pocosin muck. The “muck” is composed of water-saturated soils that act as natural sponges for the region’s floodwaters, making them ecologically important but difficult for developers to build on.
Because the soils are vital to environmental health, the county’s Unified Development Ordinance classifies them as a protected resource. Under the UDO, developers must set aside a minimum of 50% of any protected soil area as a permanent conservation easement. For Swartville, this requires at least 5.65 acres of the muck to remain entirely untouched.
TRC members noted the project’s current design for two exterior stormwater ponds are directly on top of the protected zones. Staff explained the conflict will likely require a redesign of portions of the neighborhood to pull infrastructure away from the conservation boundaries. A county spokesperson confirmed to Port City Daily the developer must submit revised plans addressing environmental encroachments and the relocation of stormwater ponds before progressing further in the review process.
Tomaselli told Port City Daily the development team completed a wetland delineation last year. He explained how once updated maps are submitted to the county, environmental constraints may be less restrictive.
“Most of the site is dry,” Tomaselli said, adding he does not anticipate the soil classifications being a “hold up” for the project.
Separate from environmental hurdles, the project must also fund and construct a public regional pump station and a new force main to serve the community. Under CFPUA service rules, developers must bear the total cost of utility extensions or capacity upgrades needed for a new subdivision, so the expense is not passed on to existing utility customers. Utility infrastructure must be fully operational before the neighborhood can connect to the regional sewer system.
Beyond utilities and soil, the developer must also address the project’s impact on the point of access, Castle Hayne Road, and nearby roadways, such as Blue Clay Road and I-140. Because initial estimates from the Wilmington Urban Area Metropolitan Planning Organization for the subdivision suggest the development could generate roughly 1,997 daily trips on Castle Hayne Road, it meets the threshold for a mandatory traffic impact analysis.
A traffic impact analysis for Swartville is currently underway and will help guide North Carolina Department of Transportation and WMPO staff to identify any required road improvements, such as new turn lanes, access roads, or traffic signals.
Surrounding roads include Blue Clay Road to the east and I-140 just north of the site. According to NCDOT traffic volume maps, Castle Hayne Road welcomes about 16,000 vehicles daily, while Blue Clay Road currently handles approximately 7,100 vehicles per day, and I-140, the primary regional bypass, serves an average of 26,500 vehicles daily.
Tomaselli said he expects an updated site plan which addresses TRC comments to be submitted to the county in a few months once the traffic impact analysis is finished.
Have tips or suggestions for Charlie Fossen? Email charlie@localdailymedia.com
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