Who's controlling development in the Cape Fear region? Here's what a StarNews analysis found

After a big rainstorm, it’s likely Joe Bell will walk outside his Pender County home and see his lawn dotted with tiny mushrooms. It’s a sight the Virginia native is used to – fungi thrive in moist climates, like that in North Carolina and its neighbor to the north.

Even on clear, sunny days, Bell is reminded of rainy morning mushrooms as he drives across Pender and New Hanover counties. The seemingly ceaseless residential development happening so fast it’s like mushrooms after a rainstorm: Appearing almost overnight.

“One day you ride by and there’s a field; the next day there’s a whole bunch of mushrooms sprouted up,” Bell said. “I call these things they’re building ‘plastic mushrooms.’ One day it’s a corn field, the next – a little exaggeration but almost – it’s 3,000- or 4,000-square-foot, vinyl-sided houses.”

Bell, 75, lives near Scotts Hill Loop Road, just over the New Hanover County line. He moved to the area eight years ago from Virginia to be closer to his children and grandchildren.

Just across Scotts Hill Loop Road from his neighborhood, land clearing has already begun for another development of “plastic mushrooms.”

His frustration is one that many area residents – both locals and transplants – share. They want to know what, and who, is behind the development. Some have even questioned the makeup of local governing boards, saying they are weighted with pro-development members who are too lenient with approving residential and commercial development.

A StarNews analysis shows that perception isn't always reality. Roughly 25% of the members of the Brunswick, New Hanover and Pender boards of commissioners and city/town councils in Wilmington and Leland are active in careers in real estate, construction or development – seven out of the 27 members of those five boards combined.

Not surprisingly, a higher percentage of the members of the planning boards that inform those boards are involved in those industries. Some 16 of the 36 individuals that make up those boards, or roughly 44%, have an active career in real estate, construction or development.

Population growth brings development

In the past 20 years, the Cape Fear region has seen significant population growth and the swells of residential and commercial development that come with it. Through the pandemic years of 2020 to 2022, Brunswick County was the fastest-growing county in the state. It was also the fastest aging.

The development of this region does not seem to be slowing, and in places with vastly undeveloped land, such as Leland and Hampstead, the development is only picking up speed.

According to data released by the U.S. Census Bureau in 2023, Brunswick County ranked seventh in the country for population percentage growth from 2021 to 2022. New Hanover County saw just a 2.17% increase in population from 2021 to 2022. Pender County’s population rose over 4% to 65,737 people from 2021 to 2022.

After eclipsing New Hanover County around 2003, Brunswick County has reported the highest number of building permits in the four-county region in the past 20 years, with Pender County only briefly reporting higher than Brunswick around 2009 to 2013, according to U.S. Census Bureau data.

How development is controlled

State laws and local ordinances regarding property largely regulate development. The rights of property owners to develop their land are well protected in North Carolina, such that local boards have few opportunities to deny development when local criteria for such development are met.

Elected commissioners and council members appoint representatives to the planning board and commissions in their municipalities. In many municipalities, both the elected and appointed representatives receive some compensation in their roles, typically a relatively small stipend.

These boards approve plans for developments at the local level. After receiving local approval, these projects must also receive local, state and federal permits before a project would move to fruition. An approval from a local body is not authorization to construct, but rather an indication that the proposed project meets the criteria for such a project in the proposed area.

In Brunswick County, the planning board approves or denies requests for planned developments, rezonings and major site plans. In the rare occurrence a planning board decision is appealed by the requestee, the item would go before the Brunswick County Board of Commissioners.

This process differs from county to county. In Pender County, developments are not considered by the county commissioners; the planning board approves those requests. The board also considers special-use permits and rezonings, but then sends those items to the commissioners with a recommendation for approval or denial.

In New Hanover County, the planning board serves as an advisory board, recommending rezoning requests to the commissioners for approval or denial. It does not consider special-use permits.

What's driving board makeup

Tyler Newman, president and chief executive officer at Business Alliance for a Sound Economy (BASE), said the amount of real estate professionals who sit on these boards is not surprising. BASE is a Wilmington-based nonprofit organization that advocates for business and industry in New Hanover, Pender, Brunswick and Onslow counties.

When it comes to appointed planning boards and commissioners, Newman said there are several reasons real estate professionals might volunteer and be chosen to serve. In the Cape Fear region, Newman said, real estate is a “huge component” of the economy.

“We’ve got an area that’s really desirable from a livability and business perspective, and people are going to come, so the question is how do we accommodate them,” Newman said.

Because real estate is such an important piece of the area's economy, real estate professionals are plentiful.

“We have professionals with a wide expertise and understanding of how real estate development works, and so I think it’s critically important that they are will to continue to volunteer on these appointed boards across the region to add their voice to what’s going on,” Newman said.

Offering expertise, time and interest

Newman sits on the board of adjustment in Wilmington. The board considers variance requests from developers or builders who provide evidence that meeting the regulations of the city's land development code would be an "unnecessary hardship."

Newman said he provides his “personal time and my professional experience” to that board.

While there are many reasons real estate or other development professionals might be interested in sitting on these advisory or governing boards, Newman said, a big one might simply be that those professionals have time and flexible schedules to dedicate to the role.

“Real estate just in the way that they’re independent contractors, they’ve got a more flexible schedule and they understand some of the business aspects, property rights aspects that local governments tend to take up, I think it leans for it being a place where those folks can provide some professional value and some political value,” Newman said.

It's valuable, Newman said, to have members of these boards understand complexities of the industry they're responsible for regulating at the local level.

“It’s a really complex and regulatory environment that developers are getting into when they try to bring a project forward,” Newman said. “So having people at the advisory board level that understand that, I think, is important.”

The pattern also extends to other municipal advisory boards in areas such as tourism, health and human services, emergency planning, parks and recreation, and others. In many cases, members of these boards have professional and personal experience in the area, allowing them to understand the topic at hand and offer an informed perspective.

Potential for − or perception of − conflicts

When real estate professionals sit on the boards that approve development or real estate dealings for their municipalities, perceived conflicts of interest can arise.

Examples of such conflict have been seen across the area in recent years. In Holden Beach, efforts to purchase the two-parcel, 1.9-acre pier and pier house property were slowed by the N.C. Local Government Commission in 2022 . The commission questioned town officials about the pier's structure and Mayor Alan Holden's involvement in the deal, but ultimately the $3.3 million purchase was approved by the commission.

In Ocean Isle Beach, Mayor Debbie Smith was accused in 2022 of inappropriately using confidential town information to her direct benefit when her real estate company purchased the town’s former police station site in 2018. Smith, ultimately, did not face criminal charges following an investigation by District Attorney Jon David .

Last year in Southport, Alderman Robert Carroll, a local RE/MAX partner and real estate agent, recused himself from a closed session dealing with a proposed property acquisition involving the city and his company. Carroll made it clear his company was somehow involved in the potential deal when then-alderman and now-Mayor Richard Alt asked, "Are we going to go into who’s going to make money off this deal?"

“I’m going to make money,” Carroll replied. “I’m going to make money.”

The deal ultimately fell through, with the seller backing out .

Tensions were high during the Brunswick County Planning Board’s February meeting. In recent months, each subsequent meeting of the board has drawn more attendees than the one before. Each month, the growing crowd largely voices the same sentiment: Slow, or stop, the development.

One by one, residents took to the podium to address the board, largely calling for them to deny the three planned developments on the February agenda. After the board approved the first two, Supply resident Maryanne Schmitt supposed “We are wasting our breath, but I’ll continue.”

Schmitt went on to speak in opposition of Cedar Crossing, a planned development that was approved in 2022 and came before the planning board in February looking to expand. Phil Norris, the developer on the project, previously served on the Brunswick County Board of Commissioners.

Brandon Simmons, a Brunswick resident, spoke up about what he saw as a clear conflict of interest.

“It seems as though all of the developments that Mr. Norris and Norris & Tunstall Engineering firm present to the board always go through, and I take issue with that,” Simmons said.

His comments received applause from the room.

“I do feel like you’ve shown some type of favoritism as he knew many members of the county commissioners as he had previously served on that board, and personally, I don’t think you should be doing business to this caliber in this county,” Simmons continued. “It really pisses me off. I don’t know how somebody from here can destroy this county.”

Norris was elected to the Brunswick County Board of Commissioners for multiple terms, the final of them in 2010. With his term set to expire, he did not seek reelection in 2014.

“I have had projects that have been turned down, I’m just like everybody else,” Norris said following Simmons’ remarks. “I’m a native of Brunswick County, I grew up here, I live on my family farm. I hear your concerns and I have those same concerns. There are laws in effect and as long as those laws are in effect I’m going to do everything I can in my business to meet those laws and exceed them.”

Norris appears before the planning board most every time the board meets. In 2023, each application he brought before the board was approved, as were all but two of all the applications the board considered in that year .

From January to November of 2023, the Brunswick County Planning Board considered 22 planned developments, including modifications to or expansions of previously approved planned developments. Of those, all but two were approved.

“It’s a hard job but somebody’s got to do it,” Norris said as he was leaving the meeting. He said he trusts the county commissioners and planning board vet each development request equally. He declined to discuss the incident or topic further with the StarNews.

In Brunswick County, concern from members of the public rarely successfully stops a development. Following resident concerns, one project was denied by the planning board in November 2023 − a planned development dubbed "Ashton Farms," which looked to bring nearly 2,950 homes and 20.5 acres of commercial space near Ash.

The successful stop was short-lived, however. The project was resubmitted to the board for approval with some adjustments in March. It was approved unanimously .

Checks and balances

Chapter 160D of the North Carolina General Statutes govern local planning and development regulation in the state. The statute outlines the roles of the counties, cities and planning boards when it comes to development, provisions which Newman argues bind these local boards, along with the comprehensive plans and development ordinances of local governments.

“The general public feels passionately about the project that’s going in next to theirs and wants to participate in that project, and that’s great,” Newman said. “But, what the planning board can and can’t do, what the commissioners can and can’t do, a lot of those things are dictated by a higher power, whether it’s federal, the state or another regulatory agency.”

The Local Government Commission "provides resources, guidance and oversight" to hundreds of units of local government across the state, weighing in on their budgets, debt management and other issues. N.C. State Treasurer Dale Folwell, who serves as chair of the board, said the board looks to shed light on situations where there may be conflicts of interest.

“I believe that ethics is what you do when no one's watching and that these board members have a responsibility to disclose actual or appearances of conflicts of interest,” Folwell said. “We always talk about our conflicts of interest, but do we always be sure to mention appearances of conflicts of interest?”

Folwell said it can be positive to have real estate professionals on governing boards, “when it brings value and a lower cost to taxpayers.”

About our reporting

Prompted by resident concerns and assumptions, the StarNews decided to look at the makeup of the area's governing boards and planning bodies, and the impact they may have on development in the region.

We decided to examine the elected boards of commissioners and the appointed planning boards in the five largest municipalities − in New Hanover, Brunswick and Pender counties, as well as the city of Wilmington and the town of Leland − to discover if the common assumption that these boards are weighted with active real estate and construction professionals was true.

Here's what we found:

Brunswick Board of Commissioners: Marty Cooke, real estate

Brunswick Planning Board: Clifton Cheek, real estate

Leland Town Council: Brenda Bozeman, real estate

Leland Planning Board: Christopher Berlin, construction; Alan Kerry, real estate; Stephen Whitney, real estate

New Hanover Board of Commissioners: Jonathan Barfield, real estate; Rob Zapple, construction

New Hanover Planning Board: Hansen Matthews, real estate; Walter Avery, construction; Clark Hipp, architecture/development; Kevin Hine, real estate; Cameron Moore, real estate

Wilmington City Council: Bill Saffo, real estate; Charles Rivenbark, real estate; Luke Waddell, real estate

Wilmington Planning Commission: Danny Adams, architecture/development; Ace Cofer, real estate; John Lennon, development

Pender Board of Commissioners: None

Pender Planning Board: Damien Buchanan, real estate; Margaret Mosca, construction; Delva Jordan, construction; Jeffery Pitts, construction

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Jamey Cross covers Brunswick County for the StarNews. Reach her at jbcross@gannett.com or message her on Twitter/X @jameybcross.

This article originally appeared on Wilmington StarNews: Who's controlling development in the Cape Fear region? Here's what a StarNews analysis found