TO: Mayor and Members of City Council
THRU: Kelly Strickland - Assistant City Manager
Dr. Gerald Newton, AICP - Development Services Director
FROM: Craig Harmon - Senior Planner
DATE: November 24, 2025
RE:Title
SUP25-07 Evidentiary Hearing for a Special Use Permit to allow changes to a Major Utility located at 6787 Bailey Lake Road (Reid # 0406046357000) owned by LUMBEE RIVER ELECTRIC MEMBERSHIP CORP.
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COUNCIL DISTRICT(S):
Council District(s)
6 - Thompson
b
Relationship To Strategic Plan:
This Special Use Permit would allow upgrades to a Lumbee River Electric Substation.
GOAL I - Safe & Secure Community
(Objectives: emergency preparedness, traffic/pedestrian safety, crime reduction, community engagement)
Supports / generally neutral.
The Lumbee River EMC substation is a low-intensity, highly secured public-utility use with limited on-site personnel and negligible traffic generation. The facility’s fenced perimeter, controlled access, and passive operating characteristics are consistent with GOAL I priorities related to public safety and emergency preparedness. Because substations do not attract routine visitors and generate very few service calls, the proposal is not expected to materially affect crime-prevention strategies, emergency medical response, or street-level safety metrics. Impacts to GOAL I indicators are therefore neutral to modestly positive.
GOAL II - Diverse & Viable Economy
(Objectives: diversify tax base; invest in places; leverage partnerships; sustain strong development climate)
Supports, particularly through infrastructure reliability and organizational partnerships.
Although the utility-owned substation will not directly expand the City’s taxable real estate base, the project strengthens essential electrical infrastructure that underpins business retention, business recruitment, and corridor vitality. Lumbee River EMC represents a long-standing regional service partner, and continued electrical reliability is closely tied to GOAL II’s emphasis on sustaining a competitive development climate and supporting job-creating private investment. By ensuring resilient power service in a growing area of Fayetteville, the substation indirectly supports economic growth, stability, and investment.
GOAL III - City Investment Planning
(Objectives: traffic/stormwater/utility coordination; manage future growth; sustain timely development services)
Strongly advances.
Electrical infrastructure is a core component of Fayetteville’s long-range growth management strategy. Locating and improving a substation at an existing operational utility site minimizes the need for new corridors, reduces environmental disturbance, and supports Objective 3.2 - strategic land use and coordinated infrastructure investment. The project also aligns with the Future Land Use Map’s framework, which emphasizes synchronizing public and quasi-public utilities with growth areas. Substation modernization improves system resiliency without triggering major demands for new roadway or stormwater capital projects.
GOAL IV - Live, Work, & Recreate
(Objectives: recreation/cultural experiences; multimodal connectivity; corridor appearance; clean and beautiful community; great neighborhoods)
Supports / neutral.
The project maintains significant natural buffering, downward-directed lighting, and screening that help protect adjacent residential areas and corridor aesthetics. These measures are consistent with Objective 4.4 - a clean and beautiful community, ensuring that utility service upgrades do not compromise livability, corridor appearance, or neighborhood character. The project does not directly address transit, recreation, housing, or poverty-reduction objectives; therefore, effects on most GOAL IV performance metrics remain neutral.
GOAL V - Financially Sound City
(Objectives: strong financial management; innovation/technology; workforce excellence)
Advances efficient resource stewardship.
Maintaining and upgrading essential electric infrastructure reduces long-term system vulnerabilities and supports reliable service delivery without placing added operating or capital burdens on the City. While the site is not intended for taxable redevelopment, the project aligns with the Strategic Priority to use innovative solutions to meet public needs while promoting operational efficiency and resilience. The substation’s capital improvements are funded and operated by the utility, preserving City resources and supporting prudent lifecycle management.
GOAL VI - Collaborative Government
(Objectives: partnerships with public agencies/businesses/military; trust and transparency; outreach and education)
Strongly advances.
The request reflects direct collaboration with Lumbee River EMC-consistent with GOAL VI’s emphasis on strategic partnerships with utilities and regional service providers. The SUP process, mailed notices, public hearing, and community engagement components reinforce the City’s commitment to transparency and open communication. Continued partnership with a regional energy provider strengthens Fayetteville’s collaborative governance model.
Bottom Line
The proposed Lumbee River EMC substation improvements are highly compatible with the FY2025 Strategic Plan. The project significantly advances GOAL III (strategic land use and infrastructure coordination) and GOAL VI (collaborative government), while meaningfully supporting GOAL V (prudent financial stewardship) and GOAL II (economic resilience through reliable energy infrastructure). The use is compatible with GOAL IV urban design and corridor beautification objectives and generally neutral relative to GOAL I public-safety performance metrics.
Overall, the proposal represents a strategic investment in resilient electric service delivery that supports community growth, protects neighborhood character, and strengthens inter-organizational collaboration.
Executive Summary:
Lumbee River Electric Membership Corporation (LREMC) is requesting approval of a Special Use Permit (SUP) in order to complete necessary modifications and improvements to the existing Arran Lakes Substation. Although the facility has been in continuous operation for many years, it was originally constructed prior to the adoption of the City of Fayetteville’s Unified Development Ordinance (UDO) and therefore predates the current requirement for a Special Use Permit for this type of utility use.
The proposed improvements do not introduce a new use, but rather reflect an ongoing need to upgrade and modernize equipment to maintain reliable electrical service for surrounding residents and businesses. Because the existing and continued use of the site falls within a category now subject to SUP review under the UDO, this application is required to bring the facility into full regulatory compliance while enabling LREMC to implement needed enhancements.
In short, the request does not represent an expansion into a new use, but an effort to ensure that essential public utility service can be safely updated and operated in accordance with current City standards and procedures.
Background:
Owner: LUMBEE RIVER ELECTRIC MEMBERSHIP CORP
Applicant: George Huggins - Lumbee River Electric Membership Corporation
Requested Action: SUP - Major Utility expansion
Site Location: 6787 Baily Lake Road
REID: 0406046357000
Status: Eclectic Substation
Size: ±7.10 acres
Public Notification: 253 mailed notices to owners within the statutory radius
Adjoining Land Use & Zoning
North (SF-6): single-family residential
South (SF-6): single-family residential
East (SF-6): single-family residential
West (SF-6): single-family residential
Land Use Policy Context
The 2040 Comprehensive Plan: Future Land Use Map & Plan (adopted May 26, 2020) applies to properties within the city limits and the Municipal Influence Area (MIA). The subject area is designated Low Density Residential.
Low Density Residential (LDR): Mainly single family residential with some accessory dwellings occasionally with duplexes (if isolated) or townhomes. Lots typically 1-4 dwellings per acre. Suburban, auto-oriented character with utility services.
Issues/Analysis:
Surrounding Area:
The area surrounding the subject property is composed almost exclusively of low-density single-family residential homes, creating a quiet, established neighborhood fabric with a consistent residential character and very limited intrusion from non-residential uses.
The surrounding area is made up almost exclusively of low-density single-family residential lots, forming a cohesive neighborhood setting. The existing substation has operated within this context for decades with minimal impact, and the proposed improvements are expected to maintain compatibility with this residential character.
TRC Summary: (Full comment sheet attached)
• Fire Department - Site must provide 20 feet of clear access for emergency vehicles, gated access must include Knox access, and the site address/emergency contacts must be clearly posted.
• Planning Department - Development must match the approved site/engineering/utility plans; any revisions or future development will require resubmittal and approval.
• * Zoning Department - Must meet all dimensional standards and conditions of the zoning district/SUP. Signage requires a separate review. Site plan must show 100-ft setbacks for major utilities, permitted 8-ft fencing height, and restrictions on barbed/electrified fencing unless an approved security plan is provided.
* NOTE: Applicant requests a reduction of the 100-ft setback to 40 feet to meet the existing built conditions.
• Inspections Department - ADA parking requirements apply; building plans must comply with the 2018 NC Building Code.
• Development Services - Staff is available to assist the applicant with coordination as needed.
• Engineering Department - An infrastructure permit is required. An NCDEQ erosion control permit must be secured prior to land disturbance.
• NCDEQ - Erosion and sedimentation control plan required for 1 acre or more of land disturbance; protective measures must be used to prevent damage to adjoining properties.
• Solid Waste Department - No comments.
• PWC Water/Wastewater - Separate submittal to PWC is required, including utility and landscaping plans. No site-specific comments at this time.
• PWC Electrical - Separate utility submittals, forms, and fees required. Landscaping must be coordinated with electrical easements; CAD format required for vegetation coordination.
History and Findings:
The subject property was acquired by Lumbee River Electric Membership Corporation (LREMC) in 1985, with the Arran Lakes electrical substation constructed shortly thereafter. Although the facility has operated safely and reliably for decades, evolving industry safety standards and revisions to the City of Fayetteville’s Unified Development Ordinance (UDO) now require LREMC to secure a Special Use Permit to complete necessary upgrades. Based on the submitted application the following evidence is submitted by the applicant to show that all six findings required for approval are met as outlined below.
Finding 1 - Compliance with Ordinance Standards
The Arran Lakes substation predates the adoption of the current UDO and therefore does not conform to Section 30-4.C, Use-Specific Standards, specifically subsection (j) requiring a 100-foot setback for major utility facilities. The proposed improvements do not create a new inconsistency but instead modify an established public utility use. Issuance of the Special Use Permit allows the substation to be modernized while aligning operations with current safety expectations and City requirements to the maximum extent feasible under the existing site configuration.
The applicant has requested a reduction in the required 100-foot setback to 40 feet to meet the existing conditions of the site.
Finding 2 - Harmony with Surrounding Area
The expansion and modernization are intended to improve power reliability for the surrounding community and to strengthen the resiliency of LREMC’s regional electrical network. While the substation footprint will increase modestly due to updated safety codes for fencing and equipment spacing, most improvements occur within the existing operations area and will be largely unnoticeable to the public. The site benefits from mature vegetation and existing buffers, which already screen the facility from neighboring properties. All visible improvements will comply with applicable standards and will maintain the character of the area.
Finding 3 - No Material Threat to Public Health or Safety
The proposed upgrades will not materially endanger public health or safety. The project does not introduce hazardous uses and does not increase risk beyond the current permitted operation. Rather, the upgrades are aimed at improving system safety, reliability, and performance to meet growing demand within the service area. No adverse impacts to adjacent property owners or public safety services are anticipated.
Finding 4 - Conformity with Adopted Plans and Policies
The project is consistent with the City of Fayetteville’s adopted land use plans and policy direction for public utility infrastructure. Substation upgrades support long-term infrastructure planning and community growth goals, and future modifications on the site will continue to comply with relevant City studies and plans.
Finding 5 - No Injury to Value / Public Necessity
The improvements will not substantially injure or diminish the value of abutting properties. The substation is an established utility use screened from surrounding development and does not generate nuisances such as traffic, noise, or lighting impacts beyond the current level. The improvements clearly meet the test of public necessity, as they support reliable and resilient electrical service for existing and future residents and businesses within the Arran Lakes service area.
Finding 6 - Compliance with City, State, and Federal Regulations
All proposed improvements-and any future upgrades on the site-will comply with all applicable City, State, and Federal standards. The project will meet the requirements of LREMC, the City of Fayetteville, and the North Carolina Department of Environmental Quality (NCDEQ).
The proposed upgrades to the Arran Lakes Substation represent a strategic and highly necessary modernization of a long-standing component of the community’s electrical infrastructure. Since its construction, the substation has served a critical role in supporting nearby neighborhoods and businesses, and the planned improvements are designed to enhance system reliability, resiliency, and safety in response to growing regional demand. Importantly, the request maintains the existing utility use of the site and does not introduce a new or incompatible land use to the surrounding residential area.
Based on the submitted materials and staff review, the application satisfies all six findings required for issuance of a Special Use Permit, demonstrating compliance with the City of Fayetteville’s Unified Development Ordinance, consistency with adopted long-range planning documents, and alignment with public safety standards. The upgrades are intentionally designed to minimize visual and operational impacts on neighboring properties-leveraging existing vegetation, controlled site access, and limited on-site activity-to ensure the continued compatibility of the substation within its established context.
Overall, the project advances the public interest by reinforcing essential utility infrastructure while preserving the character of the surrounding community. The proposed improvements will enhance power reliability for current and future residents and businesses without generating new strains on City services, making the request both technically justified and planning-appropriate.
Conclusion
The Arran Lakes Substation upgrade represents a necessary modernization of long-standing public utility infrastructure. The application meets all six required findings for issuance of a Special Use Permit, improves public service reliability, and continues the facility’s compatible presence within the surrounding community.
Budget Impact:
The proposed substation modification project is expected to have a neutral to minimal budget impact on the City of Fayetteville. All construction, operations, and long-term maintenance responsibilities will be carried out by Lumbee River Electric Membership Corporation (LREMC), and no new City infrastructure or service extensions are required as part of the request.
Because the site is already in long-standing utility use, the project:
• Does not require new public water, sewer, or roadway investment
• Does not introduce new demand on police, fire, or sanitation services beyond existing levels
• Does not necessitate ongoing City operations or staffing changes
The City may experience long-term indirect fiscal benefits associated with:
• Increased electrical reliability that supports continued residential and commercial investment in the service area
• Reduced risk of outage-related emergency response costs
• Infrastructure coordination that supports the City’s strategic growth and land use planning objectives
Since the site is owned and used exclusively for public-purpose utility functions, ad valorem revenue will not materially increase; however, the lack of ongoing City maintenance obligations ensures no negative effect on the City’s operating budget.
Options:
OPTION 1
I move to APPROVE the Special Use Permit to allow the expansion of a major utility and reduction of the required setback to 40-ft subject to the submitted site plans and conforming to the current Unified Development Ordinance standards as depicted on the attached site plan, as presented by staff, based on the standards of the City's development code and the evidence presented during this hearing. And that the application is consistent with applicable plans because: (1) the development is located in a Single family Residential 10 (SF-10) zoning district and (2) that this use complies with the findings listed and (3) the proposed permit is in the public interest because the proposed SUP does fit with the character of the area.
[Applicable to Motion to Approve] If approved, this Special Use Permit shall become effective with the approval of the Order of Findings by the City Council. The SUP shall expire one year from its effective date if a building permit is not issued within that time.
*For a motion to approve, all six findings below must be met:
1. The special use complies with all applicable standards, conditions, and specifications in this Ordinance, including in Section 30-4.C, Use-Specific Standards;
2. The special use will be in harmony with the area in which it is located;
3. The special use will not materially endanger the public health or safety if located where proposed and developed according to the plan as submitted and approved;
4. The special use is in general conformity with the City's adopted land use plans and policies;
5. The special use will not substantially injure the value of the abutting land, or the special use is a public necessity; and
6. The special use complies with all other relevant City, State, and Federal laws and regulations.
OPTION 2
I move to DISAPPROVE the Special Use Permit (SUP) for the expansion of a major utility and reduction of the required setback to 40-ft subject to the submitted site plans, as presented by staff, based on the standards of the City's development code and the evidence presented during this hearing. And that the application does not meet the finding(s) of fact listed below. More specifically finding(s) #_____.]
* For a motion to deny only one of the findings shown below needs to not apply.
1. The special use complies with all applicable standards, conditions, and specifications in this Ordinance, including in Section 30-4.C, Use-Specific Standards;
2. The special use will be in harmony with the area in which it is located;
3. The special use will not materially endanger the public health or safety if located where proposed and developed according to the plan as submitted and approved;
4. The special use is in general conformity with the City's adopted land use plans and policies;
5. The special use will not substantially injure the value of the abutting land, or the special use is a public necessity; and
6. The special use complies with all other relevant City, State, and Federal laws and regulations.
[Applicable to Motion to Deny] If denied this action shall become effective upon the approval of the Order of Findings by the City Council.]
Recommended Action::Recommended Action
Staff recommends that City Council hold an Evidentiary Hearing and base their decision on the evidence and testimony provided.
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Attachments:
1. Application
2. Aerial Map
3. Zoning Map
4. Land Use Plan Map
5. Subject Properties
6. Surrounding Properties
9. PowerPoint
10. Existing Conditions Site Plan
11. Proposed Layout Site Plan
12. Substation Modifications
13. TRC - Draft Comments