BRUNSWICK COUNTY — A developer is hosting a community meeting in a coastal Brunswick County town for a development split between jurisdictions. The project is also planned to be annexed back into Southport, but only if a conditional zoning text amendment is passed.
READ MORE: Project Indigo back with new name, potentially less units, approved by county
The public is welcome to attend the meeting for the incoming Waterway community — previously dubbed “Project Indigo” — being hosted by East West Partners and Bald Head Island Ltd. Developers will present the master plan on Wednesday, May 28, 5 p.m., at the Southport Community Building, 223 E. Bay St.
Waterway has to be greenlit by both the county and city, since Southport’s extraterritorial jurisdiction was turned over to the county in a move approved by the North Carolina General Assembly last year. It left Southport with less control over some land and property taxes due to the loss of 1,911 acres — or 615 parcels.
Three years ago Southport residents pushed back on Project Indigo, as the development was going to bring in 1,500 units and almost double Southport’s population. Development plans were withdrawn in fall 2022 and thereafter the ETJ changed jurisdiction approval. Developers then had to submit the application to the county last fall since 75% of the project would fall in its purview. The county planning board signed off on it in a 5-1 majority approval in December.
The redesign includes a proposal of 400 single-family lots, 500 multifamily units, and 200 cottages, duplexes, and townhomes, with 100,000 square feet for commercial use on 326.96 acres.
But 25% of the project is located in Southport city limits, which amounts to 19 parcels, zoned in the R-10 and planned unit development districts, near West 9th Street and Indigo Plantation Drive. The developers intend to bring 199 multi-family and single-family homes and nonresidential uses at the marina already there and are asking for a conditional rezoning to do so.
The application also includes a development agreement — which the city has to sign off on as well — to annex 326 acres from the county into Southport. But the developers will only do so if a conditional zoning text amendment is approved and added to the town’s unified development ordinance.
Conditional zoning
Conditional zoning in Southport has drummed up a lot of fuss in recent years. The 2023 political season had a few now-elected leaders against its use, some of whom denied it as a zoning tool for planning last year when it came before them.
ALSO: Fate of conditional zoning in Southport still unclear, planning board wants more public involvement
At the April 17 planning board meeting, a text amendment to add conditional zoning to the UDO returned. Southport allows conditional zoning for commercial properties currently, but the text amendment reared its head before the planning board for residential properties as well; it would not be allowed in open space. The amendment request arrived at the same time as East West Partners and BHI put forth its application requesting CZ for its Waterway development in Southport.
Planning services director Maureen Meehan noted at the meeting conditional zoning can prompt quality development with added flexibility. It would accommodate various types of projects and tailor community desires to ensure “smart growth.”
Many area municipalities use conditional zoning, including Wilmington and New Hanover County. In fact, both governments are toying with using the CZ process more, in lieu of special use permits.
CZ is a tool that Chair Sue Hodgin called valuable, in order to allow leaders to work with developers and strengthen their “negotiating ability” to have a say in how their city grows.
For instance, conditional zoning allows officials to request a project include certain assurances, such as improved pedestrian paths, less tree removal or traffic lights.
Critics have raised concerns CZ will lead to unwanted or overdevelopment, favoritism and undermines current zoning regulations.
“We missed the chance to get it right before this development came back around to us a second time,” Hodgin said at the meeting. “So, now, as I said before, we’re forced to chase our tails.”
The first CZ text amendment was denied by the board of aldermen in February 2024 in a 4-2 vote (aldermen Karen Mosteller and Robert Caroll in favor).
According to Meehan, a few things have happened adding to CZ’s circuitous return: particularly H.B. 911 removing Southport’s ETJ and S.B. 382 limiting governments from downzoning properties.
However, whereas staff crafted the text amendment a few years ago, this time around, Hodgin said the developer’s rezoning and text amendment appeared “intertwined.” Meehan said at a May 2 planning board workshop the developer suggested the text amendment. When staff brought forth the change two years ago, she added the goal was to include numerous chances for public input, including community meetings and public hearings.
“There were months and months and months of deliberation to make sure that the language was really tailored for what the community wanted to see because there was a lot of concern about the guardrails,” Meehan said.
The public still has a chance to speak out, as a requirement of the CZ includes the applicant conduct a public input meeting prior to a required public hearing. After May 20’s community meeting, the Southport board of aldermen will host a public hearing at its June 12 meeting.
The development agreement also states: “In the event that the conditional zoning text amendment, initial rezoning and other ordinance amendments necessary or desirable to effectuate the intent of the agreements contained herein have not been adopted by the City on or before June 30, 2025, this Agreement shall be null and void.”
“That shows the difference of who has leverage, in my mind,” vice chair Kevin Locklin said May 2, referring the developers’ pull over the CZ amendment.
The planning board indicated the packet arrived in April days before its first PB meeting addressing the plans, yet there was little mention of what the board of aldermen was wanting or thinking since last year’s denial of the text amendment.
Board member Larry Ashley said at the May 2 meeting: “It was handed over to us quietly like a midnight package, in my view. The board of alderman and mayor have still yet to publicly come out and say, ‘We made a mistake.’”
Hodgin said it was a shame the city was not proactive to get ahead of the CZ amendment when it had the chance; regardless, she valued having more control with the zoning district. Hodgin also admitted to seeing positives in the development, such as an increased tax base and having stakeholder say in the project, and trusted the developers attached to Waterway.
Will Hewett echoed concerns over delaying the text amendment’s passing by a year, stating it could have placed the city ahead of the curve instead of playing “catch up.”
Ashley and Hodgin agreed and surmised infrastructure needs could already be in the process of execution, had the BOA approved it the first time. It also would have prevented problems with legislation that passed since, Hodgin said.
“Well, I’m feeling optimistic about the process and development,” board member Fred Fiss said. “It is going to be a major change for Southport — it’s coming no matter what.”
The planning board also met May 15; however, the recording of the meeting isn’t available according to Southport staff.
“We are working on recovering the recording,” spokesperson ChyAnn Ketchum said. “Once the meeting ended, there was a system error that corrupted the file. At this time, there is not a recording to share.”
City deputy clerk Tori Deviney said a motion to approve the CZ text amendment passed at the meeting and the Waterway master development plan came with a recommendation for the height not to exceed the existing residential and non-residential height limits per the city’s UDO. It moves to the bird of aldermen next.
But first developers will hold the community meeting. Anyone who wants to see a copy of the proposal can ask for one at City of Southport Planning, Zoning, and Inspections office, on the first floor of City Hall from 8:30 a.m. to 5 p.m., Monday through Friday. Questions from the community about the plans can be sent to Southport Planning Services Director Maureen Meehan here, East West Partners’ Roger Perry and McKay Siegel (click their names) or Charles A. Paul, Ill, the CEO of Bald Head Island Partners.
Want to read more from PCD? Subscribe now and then sign up for our newsletter, Wilmington Wire, and get the headlines delivered to your inbox every morning.
