TO: Mayor and Members of City Council
THRU: Kelly Strickland - Assistant City Manager
Dr. Gerald Newton, AICP - Development Services Director
FROM: Demetrios Moutos - Planner I
DATE: June 23, 2025
RE:
Title
Approve P25-28: A rezoning request from OI to LC at 5414 Yadkin Road (0408667440000), owned by Xiaodi Life Fehler Estate and Phillip L. Life Fehler Estate; represented by Phillip Fehler.
end
COUNCIL DISTRICT(S):
Council District(s)
4 - D.J. Haire
b
Relationship To Strategic Plan:
Goal II: Responsive City Government Supporting a Diverse and Viable Economy
• Objective 2.1 - To ensure a diverse City tax base
Goal III: City invested in Today and Tomorrow
• Objective 3.2 - To manage the City's future growth and strategic land use.
Executive Summary:
The applicant has requested to rezone a 0.3-acre parcel at 5414 Yadkin Road in Fayetteville, North Carolina. The site is currently zoned Office and Institutional (O/I) and contains a freestanding building with a large parking area in both the front and rear. The proposed rezoning would change the designation to Limited Commercial (LC), allowing for a broader range of neighborhood-scale commercial uses.
The subject property is situated along a segment of Yadkin Road characterized by a mix of zoning classifications, including O/I and LC districts. Nearby parcels contain a variety of office and commercial uses, and the applicant notes that the general trend along this corridor is shifting toward more intensive commercial activity, potentially aligning with Community Commercial (CC) land use in the future.
The property is served by public water and sewer and has not been the subject of a rezoning application within the past five years. This request is not associated with an annexation.
The Zoning Commission voted unanimously (4-0) to recommend approval of the map amendment on June 10, 2025.
Background:
Owners: Xiaodi Fehler Life Estate and Phillip L. Fehler Life Estate
Applicant: Phillip Fehler
Requested Action: OI to LC
REID #: 0408667440000
Status of Property: Developed - Commercial building with parking in the front and back
Size: ± 0.3 acres
Surrounding Land Use & Zoning:
• North: SF-10 - Single-Family Residential
• South: LC - Vacant
• East: OI - Childcare
• West: CC and LC - Various Commercial
Letters Mailed: 212
Land Use Plans:
With the adoption of the 2040 Comprehensive Plan: Future Land Use Map & Plan on May 26, 2020, all properties within the City of Fayetteville-and those within its Municipal Influence Area (MIA)-are guided by the land use policies and long-range development vision outlined in the Plan.
The subject property at 5414 Yadkin Road is designated as Commercial Strip Redevelopment (CSR). This designation applies to aging or underutilized commercial corridors that present opportunities for revitalization through a more integrated mix of uses. The intent is to encourage redevelopment that blends moderate-density residential options with neighborhood-scale retail and service establishments, creating more walkable, economically vibrant, and aesthetically cohesive commercial areas.
The current Office and Institutional (O/I) zoning allows for low-intensity office and institutional uses, often intended as a transitional zone between residential and higher-intensity commercial districts. While appropriate in specific contexts, the O/I designation is more limited in scope and is generally not aligned with the broader commercial reinvestment goals envisioned for CSR areas.
In contrast, the proposed Limited Commercial (LC) district better reflects the land use priorities established under the CSR classification. The LC district allows a broader range of moderate-intensity retail, service, and business uses, such as restaurants, drugstores, and specialty shops, designed to serve surrounding neighborhoods. It also encourages residential uses on upper floors, supporting the Plan’s vision for more dynamic and mixed-use corridor redevelopment.
Rezonings in CSR-designated areas are expected to facilitate long-term investment by enabling greater land use flexibility while ensuring compatibility with surrounding residential development. In this case, the requested change from O/I to LC is consistent with the intended evolution of Yadkin Road into a more economically diverse, pedestrian-friendly, and commercially active corridor.
Issues/Analysis:
History:
The subject property, identified as Ponderosa LO34 SE01 BLB PL0031-0017 and located at 5414 Yadkin Road (PIN 0408-66-7440), was most recently transferred by quitclaim deed on June 2, 2023. The transfer involved Phillip L. Fehler and Xiaodi W. Fehler, a married couple, conveying their interest in the property to Xiaodi Fehler as a single individual. The deed included the grantors' reservation of a life estate interest, allowing them to retain occupancy and control over the property for their lifetimes.
The grantors acquired the property via a General Warranty Deed dated June 2, 2014, and recorded in Book 9441, Page 235 with the Cumberland County Register of Deeds. No recent map amendment applications have been filed for the parcel within the past five years, and the site has remained under consistent ownership during that time.
This history reflects a continuity of private ownership with a reserved life estate. During the most recent period of record, there is no evidence of major redevelopment, subdivision, or changes to the building footprint.
Surrounding Area:
The subject property is located along the Yadkin Road corridor, a transitional area characterized by a mix of residential, institutional, and commercial zoning districts. The site is currently zoned Office and Institutional (O/I) and developed with a freestanding commercial-style structure with surface parking in the front and rear.
To the north, the property is bordered by a Single-Family 10 (SF-10) residential district, consisting of established single-family homes. This reflects the area's historic residential character and underscores the importance of ensuring appropriate transitions between commercial and residential uses.
To the south, directly across the street, lies a vacant parcel zoned Limited Commercial (LC), indicating existing zoning support for future neighborhood-scale commercial development along this segment of Yadkin Road.
To the east, the adjacent parcel is zoned O/I and currently used as a childcare facility, demonstrating an existing institutional use consistent with the subject property's current zoning. However, this also suggests that the area is already transitioning toward a broader mix of service-oriented uses.
To the west, zoning transitions to Community Commercial (CC) and Limited Commercial (LC), with active commercial establishments that serve the surrounding neighborhoods. This mix of higher-intensity commercial zoning reflects the corridor’s shifting from lower-intensity office and institutional uses toward more flexible and economically active commercial development.
The surrounding land use pattern supports the proposed rezoning to LC, which would align the property more closely with adjacent and nearby uses while facilitating incremental reinvestment consistent with the broader goals of the 2040 Future Land Use Plan.
Map Amendment (Rezoning):
Section 30- 2. C. 1 of Fayetteville’s Unified Development Ordinance outlines the process for amending the Official Zoning Map through a rezoning (map amendment). The City Council holds the authority to approve such amendments, which may be initiated by city boards, officials, or eligible applicants. Down-zoning initiated by third parties is prohibited without the written consent of affected property owners, in accordance with state law. Rezoning applications accompanied by applicant-proposed conditions are treated as Conditional Rezonings and follow a separate review process. The standard review process includes staff analysis, potential input from the Historic Resources Commission, a public hearing, recommendation by the Zoning Commission, and final consideration by the City Council. The Zoning Commission and the City Council must adopt a consistent statement confirming whether the proposed amendment aligns with city-adopted plans and a reasonableness statement justifying the decision based on compatibility, community needs, and environmental impact. Once approved, rezoning actions do not expire but are subject to future amendments.
Straight Rezoning:
The applicant is requesting to rezone approximately 0.3 acres at 5414 Yadkin Road (PIN 0408-66-7440) from Office and Institutional (O/I) to Limited Commercial (LC). The site contains an existing freestanding structure with surface parking in the front and rear, and no physical alterations to the building or site are proposed as part of this request. The applicant has provided written responses to the required rezoning criteria; these responses reflect the applicant’s position and do not indicate staff’s assessment.
In terms of consistency with adopted plans, the applicant believes the rezoning aligns with the City’s long-term vision for the Yadkin Road corridor, which they describe as shifting from institutional and office uses toward more commercially oriented zoning, including Community Commercial (CC). While the applicant acknowledges that no recent changes in conditions necessitate the amendment, they assert that rezoning from O/I to LC will provide additional permitted uses to serve community needs better, citing changes in surrounding zoning patterns and growth along the corridor.
The applicant argues that the LC district is compatible with nearby zoning and uses, referencing adjacent parcels zoned LC and CC to the west and south and a childcare facility to the east within an O/I zone. They state that the requested LC zoning would contribute to an orderly development pattern without introducing strip-style development, since the site already contains a freestanding building that will remain in place.
Regarding potential impacts, the applicant asserts the amendment would not create an isolated zoning district given the zoning diversity along Yadkin Road. They believe the change could improve property values and support local economic growth, without negatively impacting the natural environment, since no expansion or redevelopment is proposed and LC-permitted uses are generally non-intensive.
Overall, the applicant views the request as a modest step in line with the corridor's evolving character and consistent with the City’s broader development goals for underutilized commercial areas.
Land Use Plan Analysis:
The 0.3-acre property at 5414 Yadkin Road is designated Commercial Strip Redevelopment (CSR) on the City of Fayetteville’s Future Land Use Map, adopted in May 2020. The CSR designation applies to older commercial corridors characterized by shallow lot depths, large expanses of parking, and aging infrastructure-areas the City has identified as priorities for reinvestment, adaptive reuse, and improved site design. These areas are intended to evolve into more vibrant, economically productive, and walkable commercial environments.
The applicant's request to rezone the site from Office and Institutional (O/I) to Limited Commercial (LC) aligns with the intent of the CSR designation. The O/I district typically provides transitional buffering between residential and commercial areas and accommodates lower-intensity office and institutional uses. By contrast, the LC district allows for a wider variety of neighborhood-serving retail and service uses, including restaurants, shops, and small-scale service establishments-uses that support the kind of corridor reinvestment envisioned by the Plan.
The site is surrounded by a mix of residential and commercial zoning districts, including SF-10 to the north, LC and CC to the west and south, and O/I to the east. This mix reflects the transitional character of the Yadkin Road corridor. Reclassifying this site to LC would not only be consistent with surrounding zoning patterns but would also support the Future Land Use Plan Goal #3, which calls for encouraging redevelopment of strip commercial areas. The proposal also aligns with LU-3.1 and LU-3.2, which promote the identification and targeted revitalization of aging commercial properties and facilitate land use flexibility and incentives to support redevelopment.
Additionally, the site has already been developed with a freestanding structure and is served by public water and sewer, satisfying LU-1.6, which encourages development in areas with existing infrastructure. No expansion or physical redevelopment is proposed, which minimizes any immediate adverse impacts to surrounding land uses or the environment.
The proposed rezoning supports the strategic reinvestment goals outlined in the Future Land Use Plan by facilitating land use flexibility within an aging commercial corridor and aligning the property’s zoning with existing conditions and long-term planning objectives.
Consistency and Reasonableness Statements:
The proposed rezoning of approximately 0.3 acres at 5414 Yadkin Road from Office and Institutional (O/I) to Limited Commercial (LC) is consistent with the City of Fayetteville’s Future Land Use Map and the policies outlined in the City’s adopted comprehensive plan. The property is located within a designated Commercial Strip Redevelopment (CSR) area, which is intended to support reinvestment in aging or underutilized commercial corridors through more flexible zoning, higher-value land uses, and improved design standards.
The proposed LC zoning aligns with multiple Future Land Use Goals, including Goal #1 (focus investment around infrastructure), Goal #2 (promote compatible economic development), and Goal #3 (encourage redevelopment of strip commercial areas). The property is already served by complete urban infrastructure, including public water and sewer, sidewalks, and emergency services, making it an appropriate candidate for infill development and corridor revitalization.
The request also supports several key Land Use Policies and Strategies. It is consistent with LU-1, which encourages growth in areas with existing infrastructure, and LU-2, which promotes strategic economic development by enabling a broader mix of neighborhood-serving uses. LU-3 is directly supported by activating a parcel within a CSR-designated corridor, removing regulatory barriers currently limiting reinvestment. LU-4 is partially supported by enabling future improvements to site design, and LU-5 is advanced through the corridor’s potential to benefit from future gateway investments and aesthetic enhancements.
This amendment is considered reasonable and in the public interest because it supports reinvestment in an underutilized site, encourages more flexible and economically viable land use, and strengthens the commercial fabric of the Yadkin Road corridor. The proposed LC zoning would permit additional neighborhood-serving uses without introducing significant externalities or incompatible development patterns. It also reflects modern land use trends, facilitates a desired kind of corridor-oriented redevelopment, and can potentially improve the local tax base. While no physical changes are proposed, the rezoning creates a framework for future reuse or redevelopment in line with the City’s long-range vision.
Conclusion:
The applicant's request to rezone the 0.3-acre parcel at 5414 Yadkin Road from Office and Institutional (O/I) to Limited Commercial (LC) represents a context-sensitive response to the evolving character of the Yadkin Road corridor. The property’s long-term stability under private ownership, its existing commercial-style development, and its strategic location within a mixed-zoning environment all support the appropriateness of the requested change. The surrounding land use pattern, including adjacent LC and CC zoning, further reinforces the compatibility of this request. As analyzed, the proposal aligns with the Commercial Strip Redevelopment designation in the Future Land Use Plan. It is consistent with key policy goals centered on infrastructure-supported growth, economic revitalization, and corridor reinvestment. No changes to the site are proposed at this time, and the rezoning would allow for a broader range of neighborhood-serving commercial uses in an area where such flexibility is already emerging as the norm. Accordingly, the request is both reasonable and in the public interest.
Budget Impact:
The proposed rezoning may result in a modest positive budget impact by enabling a broader range of taxable commercial uses that could increase property value and generate additional local revenue over time.
Options:
1. Approve as Presented (Recommended Action):
Based on the evidence presented, the City Council approves the proposed rezoning from Office and Institutional (O/I) to Limited Commercial (LC). The Council finds the request consistent with the City’s adopted Future Land Use Plan and reasonable given the property's location within a designated Commercial Strip Redevelopment (CSR) area, as outlined in the attached Consistency and Reasonableness Statement.
2. Approve with a Reduction in Area:
The City Council approves a modified version of the proposed rezoning, incorporating a reduction in the subject property's area. The Council finds that such a modification maintains consistency with the adopted Future Land Use Plan and may better address concerns related to scale, intensity, or proximity to residential uses, as reflected in an amended Consistency and Reasonableness Statement.
3. Approve to a More Restrictive Zoning District:
The City Council approves the rezoning to a more restrictive base zoning district than LC. The Council finds that a more limited commercial designation may be more appropriate for ensuring compatibility with adjacent residential and institutional uses, while still aligning with the general intent of the Commercial Strip Redevelopment designation, subject to an amended Consistency and Reasonableness Statement.
4. Deny the Application:
The City Council denies the proposed rezoning. Based on the evidence and testimony provided during the legislative hearing, the Council finds that the requested LC zoning is inconsistent with the Future Land Use Plan and does not adequately protect the character of nearby residential areas or promote the intended transitional land use objectives.
Recommended Action:
The Zoning Commission and Professional Planning Staff recommend that the City Council approve the proposed map amendment from Office and Institutional (O/I) to Limited Commercial (LC) for the 0.3-acre property located at 5414 Yadkin Road (PIN 0408-66-7440), based on the following findings:
• Policy Consistency: The proposed rezoning is consistent with the City’s adopted 2040 Future Land Use Plan (FLUP), which designates the site as part of a Commercial Strip Redevelopment (CSR) area. The LC district supports a broader range of neighborhood-serving commercial uses that align with FLUP policies to encourage reinvestment in aging corridors (LU-3), focus development in areas with existing infrastructure (LU-1), and promote strategic economic growth (LU-2). The rezoning is remarkably consistent with Goal #3, which encourages redeveloping and activating strip commercial areas with flexible and economically viable land uses.
• Contextual Appropriateness: The property is situated within a transitional corridor that includes a diverse mix of residential, commercial, and institutional uses. LC zoning is already established to the west and south of the site, while adjacent properties to the east and north are zoned O/I and SF-10, respectively. The proposed LC district would better align the zoning of this site with the evolving land use pattern of Yadkin Road and facilitate incremental reinvestment without introducing new construction or intensity.
• Public Interest: The rezoning would allow for a broader range of permitted uses that serve the surrounding neighborhood, without negatively impacting adjacent residential areas or public infrastructure. The site already contains a freestanding structure with existing utilities and access; no physical changes are proposed as part of this request. The rezoning supports the City’s long-range planning goals by strengthening the corridor’s commercial viability, enhancing predictability for property owners, and laying the groundwork for future site design and reinvestment improvements.
Attachments:
1. Plan Application
2. Aerial Notification Map
3. Zoning Map
4. Land Use Plan Map
5. Subject Property
6. Surrounding Property Photos
7. Consistency and Reasonableness Statement