A developer’s challenge to the denial of two special-use permits by New Hanover County officials is scheduled to go before a judge on Nov. 9.

In October 2025, The Carroll Companies, a Greensboro-based firm, filed a writ of certiorari in New Hanover County Superior Court, seeking to overturn the New Hanover County Board of Commissioners' denial of two special use permits. The special use permits are related to plans for the Bayshore Townhomes development, which would bring 242 row-style dwelling units, 62 multifamily units and 1,800 square feet of commercial space to the 8100 block of Market Street in Ogden.

The developer's initial filing alleges that county commissioners and New Hanover County violated the developers’ due process rights during the quasi-judicial special use permit hearing by failing to remain impartial, disregarding the petitioners’ sworn testimony and not following procedures outlined in the county’s Unified Development Ordinance (UDO).

During the quasi-judicial process, county commissioners can consider only testimony and evidence from participants who have established their standing in relation to the application. 

According to New Hanover County, a special use permit can only be approved if an applicant provides “substantial evidence” that the proposed use won’t materially endanger public health or safety, meets all required conditions of the zoning ordinance, won’t substantially injure the value of adjoining property and the location and character of the use will be in harmony with the area.

The New Hanover County Board of Commissioners voted unanimously to deny both requested special use permits following a quasi-judicial hearing in September 2025, citing the creation of unsafe transportation conditions and a lack of harmony with the surrounding area.

In a statement provided to the Business Journal this week, Roy Carroll II, founder, president and CEO of The Carroll Companies, said he believes the decision will be overturned. 

“We are confident in our case to overturn the Commissioners’ permit denial and to eventually deliver this much-needed housing to the market,” he wrote. “Housing shortages continue to drive up housing costs for everyone … This is a recognized growth area (node) in the Porters Neck area of the County with access to grocery stores, restaurants, and other retail services.”

Since the special-use permit denial, Carroll said his company has purchased a 30-acre tract that’s slated to be part of the development. Deed records show that Bayshore Exchange LLC purchased just over 30 acres from Herbert Parham in January for $6.7 million.

Bee Safe Porters Neck LLC, an entity managed by Carroll, also owns an adjacent 3.2-acre tract along Market Street. Gary Shipman, managing partner at Shipman Wright & Moore LLP, is representing The Carroll Companies in the suit.

“Nothing that we’ve been provided in the document dump provided to us by the County justifies the actions to deny this permit,” Shipman wrote in a statement to the Business Journal. “If anything, the County’s non-compliance with its discovery obligations amplifies the disregard for the law.”

New Hanover County declined to comment on the appeal after it was filed, citing the pending litigation. This week, Alex Riley, the county’s communications coordinator, said officials had nothing new to add.

Earlier this year, Superior Court Judge Richard Harrell ordered the removal of the New Hanover County Board of Commissioners as a defendant in the case, finding that the commissioners were not the proper party to be sued, according to court filings. New Hanover County remains the sole defendant.

In December, the Marsh Oaks HOA and 23 residents living near the proposed project area filed motions to join the lawsuit as intervenors. Wilmington attorney Grady Richardson is representing the intervenors.

Members of the Marsh Oaks HOA also retained Richardson to represent them during the quasi-judicial special use permit hearings before the New Hanover County Board of Commissioners, he said this week. Intervening in the ongoing proceedings allows his clients to show support for the county’s decision and get a “seat at the table,” according to Richardson.

To intervene, residents have to prove legal standing, Richardson said. In court filings, representatives for The Carroll Companies have asked each intervenor to answer 27 questions related to traffic, safety risks, stormwater runoff and other impacts from the proposed development, among other items. The petitioners also request documentation from the intervenors, including property surveys and appraisals, and communications related to the special use permits and proposed project. 

“The developer, I believe, is going to challenge some or all of my clients who are proposed intervenors on the issue of standing,” Richardson said, “and I believe that we will clearly overcome any challenges on standing that the developer makes.”

According to Richardson, an order hasn't been issued allowing his clients’ intervention in the case because no hearing has been held yet on the issue. He expects the hearing to be held before the case goes before a judge in November.

“We believe the county commissioners got it right,” Richardson said, “and we’re prepared to present our arguments in court in support of the county decision.”