An adult entertainment business on Bragg Boulevard lost its bid Tuesday to overturn the City of Fayettevilleโ€™s revocation of its building permitsโ€”a decision that now bars the shop from operating at its longtime location.

The city zoning commission voted 3-1 that the business, Fort Outpost at 4431 Bragg Blvd., had discontinued its adultโ€‘use operations for at least 365 consecutive days. That determination meant that the business lost its exemption to operate in an area that no longer allows sexually-oriented businesses under city ordinances. The ruling upholds the cityโ€™s earlier determination that the permits granted in April were issued in error.

Commission members Justin Herbe, Zaccheaus Eley, and Phillip Fehler voted to uphold the cityโ€™s permits revocation. Roger Shah voted no. 

In April, Fort Outpost applied for multiple building permits as part of ongoing renovations. A day later, the city revoked them, saying the business no longer had the legal right to operate as an adult entertainment business. The owner appealed, which sent the case to the zoning commission.

The building is owned by 4311 Bragg LLC, a company tied to a family trust associated with Keith Johnson, who operates similar businesses across the country, including Annabelleโ€™s Adult Supercenter in Winstonโ€‘Salem.

Fort Outpost has been at the Fayetteville location since 2018. The business sold sex toys, lingerie, and sexually explicit magazines, according to Jerry Fultz, comptroller for the family trust that owns Fort Outpost. It also offered booths where customers could watch sexually-explicit videos.

Charles Smith, the attorney representing the owner, said he is reviewing the hearing record before advising his client on whether to appeal.

โ€œI think the zoning commission treated it seriously. I think their deliberations were certainly with good intent, and they made a decision,โ€ Smith said.

Smith is also a lawmaker in the state House. The Democrat has represented District 44, which includes Cumberland County, since 2023.

Owner Disputes Cityโ€™s Findings

Fultz said the business disagrees with the cityโ€™s conclusion that it effectively shut down.

โ€œWeโ€™re going to court on it,โ€ Fultz told CityView after being asked if they plan to appeal the decision.

โ€œTheyโ€™re saying that weโ€™re closed since 2018, even though we showed them that we have been paying the electric bill since then. We had product in there,โ€ Fultz said. โ€œThey even showed pictures where they said it was deserted and the power was off, but it shows the lights are on.โ€

โ€œObviously we donโ€™t agree with them because we have been open. We have not been open a lot because weโ€™ve been remodeling the building,โ€ he added.

Fultz said the trust has spent about $200,000 on repairs in recent years. He also said the business is still evaluating whether it will continue its video booths, noting, โ€œWeโ€™re not certain because weโ€™re not certain if we can find the proper equipment.โ€

A sign from the Fayetteville Fire Department, dated January 27, 2025, warned that Fort Outpost was hazardous and unsafe to occupy. The issue was later rectified. The door was photographed on Thursday, August 13, 2026. Credit: Rachel Heimann Mercader / CityView

Past Scrutiny and the Cityโ€™s Case

Fort Outpost appeared on Fort Braggโ€™s offโ€‘limits list in 2022โ€”a designation identifying businesses where soldiers are prohibited from going, though the most recent version of the list no longer includes the business. The cityโ€™s case focused on zoningโ€”whether the adult entertainment use had been discontinued long enough to lose its exemption to current ordinances prohibiting it.

On Tuesday, city code enforcement officers testified about boarded doors, empty parking lots, negligible utility usage, and long stretches of zero revenue in the businessโ€™s own ledgers. 

They also offered evidence showing the building was tagged as a dangerous building and unsafe to occupy. Those issues were later rectified, Smith told the commission.

The city argued the business and adult use had effectively ceased for at least 365 daysโ€”the threshold for losing nonconforming status.

โ€œBut the city has presented evidence, and the record is riddled with evidence tending to show inactivity,โ€ said Laโ€‘Deidre Matthews, an attorney with the Charlotteโ€‘based firm Fox Rothschild who represented the city. โ€œWhat is the period of 365 consecutive days of inactivity? That is up to you.โ€

Fort Outpost last posted on its Instagram account on April 5, 2020 and said the business was temporarily closed. The business does not appear to have an active Google listing.

Smith countered that the city never identified a precise yearโ€‘long period when the adult use actually stopped.

โ€œThe city is seeking to take a right thatโ€™s been established at this property from us without any evidence presented by any competent witness who can testify that the use of this property was ever discontinued,โ€ Smith said in closing at the hearing.

He acknowledged to the commission that the business โ€œslowed downโ€ after 2023 but said it continued operating intermittently and maintained corporate formalities. He pointed to utility bills, tax records, vendor invoices for adult inventory, repair receipts, and years of codeโ€‘violation compliance as proof of ongoing activity.

When pressed by Smith at the hearing, code enforcement officers conceded that the violations they cited did not independently prove a full year of discontinued use.

Herbe, who served as the presiding officer during the hearing on Tuesday, told CityView the case was โ€œpretty clearโ€‘cutโ€ based on the evidence presented.

โ€œAll they were doing was keeping their LLC current with the state. To me, that wasnโ€™t a business.โ€

He also said the type of businessโ€”adult entertainmentโ€”did not factor into the boardโ€™s decision.

โ€œThe case was primarily about whether the property had been vacant for more than 365 days, and whether the city was allowed to revoke the permit,โ€ Herbe said. โ€œThe type of business didnโ€™t play a part.โ€

What happens next

With the commission siding with the city, Fort Outpost cannot operate unless the owner successfully appeals the ruling in court.

Smith said he wants to review the hearing transcript before advising his client about appealing the commission decision. 

Government reporter Rachel Heimann Mercader can be reached at rheimann@cityviewnc.com or 910-988-8045.

Rachel Heimann Mercader was CityView's government reporter, covering the City of Fayetteville, from October 2025 to September 2026. She has reported in Memphis, the Bay Area in California, Naples, Florida, and Chicago, covering a wide range of stories that center community impact and institutional oversight.