TO: Planning Commission
THRU: Craig Harmon, CZO - Senior Planner
FROM: Jennifer C. Baptiste - Development Ombudsman Manager/Special Project Coordinator
Chester Green - Senior Planner
Scott Walters - Senior Planner
DATE: March 17, 2026
RE:Title
Text Amendments to Article 30 of the Unified Development Ordinance to include a Medical Arts Campus Zoning District
Title
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COUNCIL DISTRICT(S):
Council District(s)
Various
b
Relationship To Strategic Plan:
Strategic Operating Plan
Goals 2026
Goal 2: Responsible City Government Supporting a Diverse and Viable Economy
• Objective 2.3 - Maintain a favorable development climate to promote business growth.
Goal 3: City Investment in Today and Tomorrow
• Objective 3.1 - Improve city street connectivity, optimize traffic flow, and upgrade stormwater systems.
• Objective 3.2 - Direct the city’s future growth and guide strategic land use.
Goal 4: Desirable Place to Live, Work, and Recreate
• Objective 4.3 - Enhance mobility and connectivity by investing in sidewalks, trails, and bike lanes.
Goal 6: Collaborative Citizen & Business Engagement
• Objective 6.2 - Build trust and confidence in city government by ensuring transparency and delivering high-quality customer service.
Executive Summary:
In recent years, Cape Fear Valley Regional Hospital has expanded its campus and business model. The main campus on Owen Drive has added several buildings and introduced new uses to improve healthcare in the Fayetteville area.
Because the campus is zoned Office Institutional (OI) and included in the Hospital Overlay district, the hospital has submitted several applications to accommodate expansion and changes in use.
Staff reviewed the Unified Development Ordinance (UDO) to identify amendments that support the growth of the local healthcare system and attract additional providers. These updates follow specific recommendations from system representatives and best practices.
On February 11, 2026, Planning Staff hosted a virtual public meeting via Teams to engage stakeholders and solicit feedback on proposed modifications to the UDO.
The proposed changes include both text amendments and map amendments (rezonings). The text amendments are provided here for Planning Commission review and recommendation. The Zoning Commission will consider the map amendments on April 14, 2026. The City Council will review and adopt all proposed amendments in May 2026.
Background:
The Strategic Operating Plan identifies maintaining a favorable development climate to promote business growth as a key objective for the City. Creating this zoning district aims to encourage and facilitate development with the current healthcare provider and attract future healthcare providers.
Issues/Analysis:
Currently, Cape Fear Medical Hospital properties are zoned Office Institutional (OI) and are also located in the Hospital Overlay district.
This proposal calls for a comprehensive evaluation of these properties and recommends appropriate zoning districts.
After thoroughly analyzing the recommendations, Planning Staff drafted text and map amendments to the UDO. The text amendments update the zoning and development regulations, while the map amendments revise the boundaries and labels of the zoning districts. Because both types are intertwined in the Medical Arts Campus recommendations, both are described here. Only the text amendments are included for Planning Commission Review; the Zoning Commission will consider the map amendments on April 12, 2026.
The following overview summarizes the text amendments. (See the attached summary analysis spreadsheet for a list of all proposed text amendments and applicable sections of the UDO.)
• Establish a single Medical Arts Campus zoning district to promote the development of medical institutions. Any future medical institution seeking this zoning district must have a minimum of five (5) acres.
• Use Table and Use-Specific Standards. The amended Use Table (Table 30-4.A.2) adds the “MAC” classification. Staff evaluated each land-use type to determine its impact on the new districts’ stated purposes and categorized each use as permitted, prohibited, or requiring a Special Use Permit (SUP). Staff minimized instances requiring and SUP to encourage unimpeded development. The goal is to allow as many uses as possible without additional impediments.
• Technical development standards. The updated technical development standards, including landscaping and signage, enhance the area’s visual quality, emphasize the pedestrian experience, and encourage business and retail activity.
Budget Impact:
The proposed changes to zoning and development standards in the Medical Arts Campus area will encourage development and increase the City’s tax revenues.
Options:
The Planning Commission will conduct a legislative hearing on the application in accordance with the Fayetteville City Code. After closing the hearing, the Commission will consider the application, relevant support materials, the staff report, and any public comments. By a majority vote of a quorum present, the Planning Commission will take one of the following actions:
1. Recommend to the City Council the adoption of all or some of the proposed text amendments;
2. Recommend to the City Council the denial of the proposed text amendments;
3. Recommend revisions and adoption of the proposed text amendments; or
4. Recommend remanding back to the staff for further consideration.
The Planning Commission will provide a written recommendation to the City Council that addresses whether the decision aligns with all applicable City-adopted plans. However, if the Planning Commission comments that a proposed amendment is inconsistent with the applicable plans, the City Council may still consider or approve the amendment.
Recommended Action::Recommended Action
Planning Staff recommends Option 1
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Attachments:
1. Proposed text amendments to Article 30-3 Zoning Districts (Base Zoning Districts Established, Business Base Zoning Districts, Conditional Zoning Districts, Zero Lot Line)
2. Proposed text amendments to Article 30-4: Use Standards (Use Table, Accessory Use Standards)
3. Proposed text amendments to Article 30-5: Development Standards
4. Proposed text amendments to Article 30-9: Definitions
5. Consistency and Reasonableness Statements