OAK ISLAND — Oak Island’s planning board denied a proposal to rezone the town-owned Yaupon Fishing Pier and adjacent oceanfront event space, a move staff said would provide flexibility for future redevelopment of the properties. While board members supported updating the town’s development ordinance to recognize event spaces and piers as permitted uses, they worried rezoning the parcels would leave the oceanfront vulnerable to incompatible development if the land were ever sold.
On June 30, the board unanimously denied the rezoning of two town-owned properties located next to each other on Ocean Drive, including the town’s pier. However, the board approved text amendments to include language for event spaces and piers into the town’s Unified Development Ordinance.
The town received the event space in a land swap with the ELB Family Partnership in 2018. Though, the building was constructed and its use as an event space was decided in 1955, prior to the incorporation of Oak Island. The previous owner, Ed Burnett, made the property a wedding venue in 2015; the property’s use has been grandfathered in since the town maintained it as an event space.
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Because event spaces were not included in Oak Island’s UDO, technically, the venue was out of compliance. The decision on June 30 amended it to “formally codify an existing use already occurring in the Town,” according to a spokesperson. Event spaces are now allowed in commercial recreation, community business and commercial low density.
A decade ago, the town originally planned for a pier complex, consisting of Yaupon Pier, a bait and tackle shop on the pier, an arcade, event space and restaurants. On the property currently is a bait shop, the event space, Koko Cabana and Lazy Turtle Bar and Grill; however, there is little retail and no arcade.
City staff made the rezoning request for the 6,000 square-foot event space at 801 Ocean Drive and the Yaupon Fishing Pier from commercial recreation to community business. Commercial recreation is a more restrictive zoning district because it is specifically designed to protect the oceanfront aesthetic and access; community business, on the other hand, allows a wide variety of businesses, including retail and restaurants, which would permit further economic growth.
“I think there are a myriad of options that are available,” OKI Planning Board Vice Chair Durral Gilbert said. “Public-private partnership, land lease, you could sell it.”
Staff added rezoning would also allow for “job creation and enhancement of the Town’s tax base.”
Oak Island’s Town Council has previously acknowledged limited revenue sources, with most coming from property and occupancy taxes, the latter of which is limited due to having little land left for buildout. Refurbishing already constructed properties would help improve or increase the town’s tax base and bring further revenue.
However, planning board members worried the property could be sold in the future — thus, if it were rezoned, it would allow for additional uses like fuel and convenience stations, residential units and office spaces. More so, a rezoning could jeopardize the aesthetics of the oceanfront street should the town sell the property to a developer.
“We don’t want a gas station there. You know what I mean?” Gilbert said. “We don’t want veterinary clinics with kennels. We don’t want a lot of these things — dog grooming.”
The board worked through the permitted uses under the community business district. Planning board members questioned whether office spaces or artisan workshops would be appropriate for the 6,000 square-foot event space. They noted residential uses were undesirable, but are also allowed under the commercial business district.
They preferred to limit uses to bars, coffee shops, commercial piers, food trucks, specialty retail stores and convenience stores because they would be more consistent with the businesses already on Ocean Drive. No vote was taken at the end of the conversation; however, the board directed staff to stipulate desired intended uses and current use of the property in a draft master development plan. The document would be used to determine what uses could be grandfathered in for the properties.
The town is intending to keep the event space and pier together, should they sell the property. Though some planning board members, like Kerri McCullough, believed they should treat the lots separately because of their different uses.
“I think the public views them separately for different reasons and has an appreciation for both of them for different reasons,” McCullough said.
Because the event space and pier will be treated as one parcel, planning board members queried whether the rezoning would potentially create problems for the conservation easement for the pier. The board suggested if a developer purchased the rezoned property and intended to use it for something other than an event space, they could claim the pier made their plans impossible or impractical.
“I understand it runs with the land in perpetuity, but it can also be rescinded via court order and other things,” McCullough said. “So how comfortable do you feel that that conservation easement can remain in place?”
Town attorney Lydia Lavelle noted the easement was “pretty strong” and attached to the land rather than a property owner. The easement also notes its expungement would only apply if it was impractical or made a developer’s desired plans impossible. Lavelle noted the easement could potentially be added to the deed. However, she said she would need to research the matter further.
Because of the uncertainty surrounding the repercussions to the pier, the board unanimously shut down the proposal.
“We need to protect it. We need to protect that area,” planning board member Barbara Textoris said.
“The best way to protect it is never sell it,” her colleague, David Purser, said.
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