Trial date set for New Hanover development lawsuit

A trial date has been set for a lawsuit over the denial of a residential development in New Hanover County.

A jury trial hearing for the Bayshore Townhomes appeal has been scheduled for Nov. 9, according to court documents. The lawsuit, filed against New Hanover County by developer Bee Safe Porters Neck, alleges that the Board of Commissioners were swayed to deny the townhome proposal by “more than 200 pages of ex parte communications from members of the public” during a hearing where public comments were limited.

The hearing will take place at 10 a.m. in Courtroom 400 at the New Hanover County Courthouse. The case is one of four appeals underway at the county level, including another lawsuit.

The county is not anticipating increased legal costs as a result of the lawsuits, a county spokesperson said. New Hanover has three attorneys on staff, two of whom are representing the county in the Bayshore case.

Defending the denial

The lawsuit stems from commissioners’ 2025 denial of a special use permit request for a 304-unit townhome development on Market Street in Porters Neck. The proposal had been in the development pipeline for two years, with project leaders altering plans in response to vocal opposition from neighboring residents.

Over the course of several public meetings, Porters Neck residents expressed concerns over the development’s impacts on stormwater management, home values, school capacity and traffic. The project was estimated to generate 2,306 daily trips. Porters Neck Elementary is already over capacity, with the school projected to reach 144% capacity by next year.

The application underwent a quasi-judicial review, a process similar to a court proceeding that the county has since eliminated due to concerns over limitations on public input.

The board unanimously voted to deny the request on the grounds that the project would endanger public health and that the project was not in harmony with the area. Commissioners did not reference public comments received in their denial.

While the arguments of the case center around public participation in the review process, concerned residents have not been dissuaded by the lawsuit. Members of the neighboring Marsh Oaks Homeowners Association formally intervened in the suit in December 2025.

Upon intervention, representatives for the developer requested that the 23 residents and the HOA respond to a total of 645 interrogatories and 285 requests for production of documents to prove how they would be impacted by the project.

Marsh Oaks HOA president Courtney Corriher previously told the StarNews that the group is doing “anything it can to support the county.” The county has declined to comment on the ongoing litigation.

Representatives for the developer said that they are hoping for the court to determine that their client did not receive due process and that the commissioners did not act as impartial decision makers. The developer is seeking an order from the court to get the development permit approved.

Residents lawyer up against developers

Three more development decision appeals are currently underway in New Hanover County.

Two separate appeals are filed against the county’s Technical Review Committee‘s approval of the first phase of Hilton Bluffs, the proposed subdivision on the Sledge Forest property.

In April, the Board of Adjustment granted the appellants’ request to temporarily pause the issuance of all permits related to the project. The stay will remain in place until either a ruling is determined on the appeals or July 31. Hearings for the appeal arguments were scheduled for June 23 and 24.

New Hanover is also in court over its denial of Ironwood, the proposed 291-unit expansion of the Tarin Woods neighborhood in Monkey Junction. Commissioners rejected developer Hoosier Daddy LLC‘s plans in October 2025, citing an incomplete application and the endangerment of public health or safety.

Much like the Bayshore case, the Tarin Woods Property Owners Association formally intervened in the lawsuit in April, according to court records.

In May, the developer motioned to strike a collection of documents from the record, stating that they were superfluous to the case as they were not included in the initial commissioner hearing. The list of documents includes an investigation into the signature of a now-deceased manager of Hoosier Daddy on the project application, email threads involving all parties, miscellaneous media articles.

At a hearing on June 4, a judge ruled to continue motions until after Sept. 1, according to minutes from the hearing.

Daniel Sheehan covers New Hanover County for the StarNews. Reach him at [email protected].

This article originally appeared on Wilmington StarNews: Trial date set for New Hanover development lawsuit

Reporting by Daniel Sheehan, Wilmington StarNews / Wilmington StarNews

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