Why Oak Island Is Rethinking the Zoning Under Its Own Pier

The Town of Oak Island has asked to rezone the two parcels it owns at the foot of Womble Street. One is the Oak Island Pier complex at 705 Ocean Drive. The other is the 801 Ocean Event Center next door. Together they cover about 1.96 acres, and the request would move them from Commercial Recreation zoning to Community Business. The Planning Board turned the request down unanimously on June 30. Even so, Town Council directed staff on September 8 to schedule a public hearing for its October 13 meeting, 12 days from now.

None of this changes your Tuesday at the pier. The pier stays open year-round from 6 a.m. to 10 p.m., and the Pier House still sells fishing passes, bait and tackle. The zoning question is about something further off. If the Town ever sells or leases this land, the zoning decides what the next owner is allowed to build. Both sides of the debate are trying to protect the same oceanfront from different risks.

The current zoning allows the one thing nobody wants

Commercial Recreation sounds like the more protective district, and Port City Daily described it that way. CR is designed to protect the oceanfront's look and public access. Yet the Town's own staff memo points out that CR currently permits single-family homes on these parcels. Staff recommended Community Business partly to "disallow undesirable single-family residential uses which are currently permitted under the current CR zoning."

Here is how the two districts compare on these two lots, based on the June 19 staff memo:

The last row explains part of why this came up. Before June 30, the Town's development ordinance didn't recognize event spaces at all, so 801 Ocean was technically out of compliance. Its use had been grandfathered in since the property's previous owner, Ed Burnett, turned it into a wedding venue in 2015. The Town received the building in a 2018 land swap with the ELB Family Partnership. The same night it voted down the rezoning, the Planning Board approved a text amendment that makes event spaces an allowed use in Commercial Recreation, Community Business and Commercial Low Density. That fixed the compliance problem without the rezoning.

That left the bigger question of what the land could become. The Town's application says Community Business would allow "a broader range of commercial uses" and "greater flexibility for adaptive reuse and reinvestment," supporting "economic growth, job creation, and enhancement of the Town's tax base." Port City Daily tied that to the Town's budget. Most of Oak Island's revenue comes from property and occupancy taxes, and the island has little land left to build on, so getting more out of buildings that already exist is one of the few ways to grow the base.

What the Planning Board was guarding against

Removing single-family homes means opening the door to 67 commercial uses, and the Planning Board went through that list carefully. Board members worried that if the parcels were rezoned and later sold, or even leased, uses like fuel and convenience stations could follow.

"We don't want a gas station there. You know what I mean? We don't want veterinary clinics with kennels. We don't want a lot of these things — dog grooming." Durral Gilbert, Planning Board Vice Chair, as reported by Port City Daily

The board's own shortlist was much smaller: bars, coffee shops, commercial piers, food trucks, specialty retail and convenience stores. Members picked those because they fit the businesses already on Ocean Drive. Today the pier complex holds a bait shop, Koko Cabana and Lazy Turtle Bar and Grill. A decade ago, the Town's plans for the complex included restaurants, retail and an arcade.

Gilbert also listed the ways the Town could eventually let go of the property: "Public-private partnership, land lease, you could sell it." Board member David Purser answered that idea directly: "The best way to protect it is never sell it." Those were Planning Board comments. Town Council hasn't voted on any sale, lease or partnership. Its September 8 action was limited to scheduling the hearing.

The pier has a separate layer of protection

The 880-foot pier itself is covered by more than zoning. A conservation easement recorded in November 2011 covers the pier and its access and preserves public use of it. Town counsel told the Planning Board that the easement is held by the Oak Island Land Conservancy and runs with the land.

The board's real worry was how that easement would interact with a broad commercial district. The Town intends to keep the pier and the event space together if it ever sells. Board members suggested that a buyer of the rezoned property who wanted something other than an event space could argue the pier made those 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," member Kerri McCullough said. Town Attorney Lydia Lavelle called the easement "pretty strong." She explained that it could only be removed if it made a developer's plans impossible or impractical, and said she needed to research the question further. That uncertainty is the reason the board gave for its unanimous no.

The pier's funding history adds another layer. In 2008, StarNews reported that the Town was pursuing a $500,000 state grant toward buying what was then Yaupon Pier and would have to match it dollar for dollar. WHQR identified that grant as coming from the state's Parks and Recreation Trust Fund. The Town took ownership in 2009 and reopened a rebuilt pier in 2019 after Hurricane Matthew. In 2017, Port City Daily reported that Golden LEAF had approved a grant toward demolishing and rebuilding the storm-damaged pier, pending a Town Council vote. At the September 29 Planning Board meeting, staff said the pier had been left out of an earlier motion because of unresolved questions about those grant obligations and long-term protections. The board asked the Town attorney to review the Golden LEAF terms and whether deed restrictions could bind future owners. The full grant terms and easement text aren't publicly summarized yet, so what those documents actually require is still an open question.

Three ways the Council could go

On September 29, Craig Harmon presented the options in one of his first appearances as the Town's new development services director:

• Straight rezoning to Community Business. Every by-right and special-use permit use in the CB district becomes available on both parcels, with CB setbacks.
• Conditional zoning. Uses are tied to a master plan with conditions. The plan has to be sealed by a professional. At the September 8 Council meeting, staff said this route also needs a public input meeting and adds cost, with a rough estimate of $15,000.
• A new parcel-specific district. This option drops the master plan requirement, but Harmon noted it allows broader by-right uses.

These options trade off cost against control. The cheapest one leaves the most open, and the one that pins down future uses most tightly requires a sealed plan and money up front. Several board members favored limiting by-right uses to keep long-term control. Staff said it would bring alternatives to Town Council in October.

The Town's own land-use plan points in two directions here. The parcels fall under two future land use categories. One, Transitional Mixed-Use Corridors, favors neighborhood commercial uses like coffee shops and discourages single-family homes. The other, Conservation and Recreation, doesn't support new commercial building. Staff noted that the existing pier still fits that category's goal of passive recreation that gives the public educational opportunities. Every surrounding parcel to the north, east and west is zoned Commercial Recreation.

The other change coming to the same wall

While the zoning question waits, the Town is moving ahead on the building itself. It asked artists to propose a mural for the east exterior wall of 801 Ocean, the side facing the pier, where people walk in from the Womble Street beach access. Proposals were due September 30.

No October 13 agenda had been posted as of this writing, so check the Town's meetings page before you go. The public hearing is the point in this process where residents speak directly to Council. At the September 29 Planning Board meeting, nobody signed up for public comment.

Zoning on a parcel like this affects more than the parcel. It shapes the blocks around the pier, and over time it shapes what owners nearby can expect. If you own near Ocean Drive and want to talk through what any of these options could mean for your property, Marc Stollings is glad to go through the staff memo and hearing record with you. Let's Connect.

This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.