Leland council denies conditional rezoning for Mallory Creek site, citing limited commercial land

The Leland Town Council on Monday denied Ordinance ORD24‑019, a request to conditionally rezone about 31.5 acres adjacent to Mallory Creek Plantation, finding the change "not reasonable or in the public interest" because it would substantially reduce land available for commercial development in the town.

Town planning staff presented the proposal as a mixed residential‑and‑commercial plan intended to create a neighborhood node consistent with the town's Leland 2045 plan. Planning staff member Ashley (planning staff) told the council the conditional rezoning would allow 127 townhomes (about 4.63 dwelling units per acre) and roughly 30,000 square feet of commercial space, and that the developers had increased a buffer behind some townhomes from 15 feet to 25 feet and proposed to preserve several mature trees found in an on‑site tree survey.

The nut of the dispute was how much of the site should remain commercial. Supporters — including Grayson Morgan, entitlements project manager for D.R. Horton, and Bill Cameron, a principal with Mallory Creek Land and Timber/Wilmington West — said the plan balances residential and commercial uses, provides infrastructure to make the commercial area viable, and includes amenities and tree preservation beyond what the town's ordinance requires. Paul Lucas of Cape Fear Commercial said the developer's infrastructure commitments would "greatly accelerate" the likelihood of commercial tenants.

Opponents, including several Mallory Creek residents, argued the parcel's location along Highway 133 makes it valuable commercial land the town should hold for future business development. Henry Ponton, a Mallory Creek resident, said the HOA negotiated protections into the conditional rezoning, including larger buffers and a ban on on‑site burning, but others remained unconvinced. Jeff Martin, a Leland resident, noted that the amendment would reduce commercial acreage from roughly 21.6 acres to about 4 acres and urged the council to preserve the greater commercial footprint.

Council discussion weighed those competing views. One council member emphasized that Leland has limited commercial land and that the council's long‑standing direction had been to preserve commercial corridors where they make sense. After discussion, a councilmember moved to deny adoption of ORD24‑019, saying the town should retain commercial land for the municipality's long‑term interests. The motion carried.

Context and key project details: staff said the property is approximately 31.5 acres (21.6 acres currently zoned C‑1 and about 9.9 acres in a PUD). The applicant team described the plan as including 127 townhomes, about 30,000 square feet of commercial space, expanded pedestrian connections including an 8‑foot multi‑use path, preservation of mature vegetation where feasible, and a prohibition on on‑site burning during land disturbance. Planning staff also cited an ongoing traffic impact analysis (TIA) that estimated about 70 trips during AM peak hours and 226 trips during PM peak hours; the TIA review was scheduled to be complete in the WMPO process in mid‑March.

Planning board and process: the application first arrived in October 2024, and the planning board recommended approval by a 4‑3 vote in December 2024. Staff noted conditional rezonings allow legally binding site plans and conditions but that detailed technical issues such as stormwater, environmental constraints (possible wetlands and poorly drained Group D soils), and final engineering would be handled later in technical review if the rezoning had been approved.

Votes at a glance

- Resolution R25‑010 (appoint town attorney and approve agreement for legal services): Adopted (unanimous voice vote at the meeting). The council appointed Steven D. Coggins of Rountree Loss LLP as town attorney.

- Ordinance ORD24‑019 (conditional rezoning — Mallory Creek area): Denied (motion to deny carried). The council found the rezoning would reduce available commercial land and was "not reasonable or in the public interest" given the town's commercial land constraints.

What happens next: Because the council denied the conditional rezoning, the property will retain its existing zoning designations unless a new application is filed. If a similar rezoning application returns, the council and staff said technical review items (stormwater, wetlands delineation, traffic mitigation) would be addressed during the development review and permitting process.

For transparency, the record shows the planning staff presentation and the applicant's time for a 15‑minute presentation, followed by pro and con public comments and a council motion to deny. The council also flagged the TIA and technical review as outstanding items that would have been required if the rezoning had moved forward.