A stumbling block to construction of phase three of Fayette Pavilion shopping center may be removed soon.

State Environmental Protection Division officials have approved developer Thomas Enterprises' plan for a package sewer plant to serve the stores. If the local Health Department approves the plans, the company will have come out on top in a year-long struggle with the city of Fayetteville over plans for the shopping center.

Fifty-acre phase three is the final segment of the firm's plan for the giant shopping center, but arranging sewerage for the project has been a struggle.

Phases one and two of the development are inside Fayetteville's city limits and thus are served by the city's sewer system, but Thomas and the city don't see eye to eye on his plans for phase three. Mayor Mike Wheat and the City Council have made it clear they would like to see office development on the parcel, or a mix of offices and stores, but Thomas Enterprises president Stan Thomas has argued that land and development costs are too dear for offices in the high-traffic Pavilion area.

"Our land use plan has called for business park in that area from the very beginning," said Wheat. "It could be a mixed use. We would certainly be flexible on that," he added. "But you would have to do it in such a way that you step the use down over toward [Ga. Highway] 314."

Thomas abandoned plans to annex the land into Fayetteville, and in April 1998 convinced county commissioners to give the property a C-H (commercial-highway) designation, saying he planned to bring upscale stores like Saks, Lord and Taylor and Nieman Marcus to the site, developing a "village" style center. Since then, plans have changed and the firm is working with more "big box" stores similar to the ones in phases one and two.

Thomas said he could serve the center with septic tanks, but he also applied for state and county approval to build his own sewer plant, saying that option would be better for the local environment and would allow him to build more restaurants.

City officials sent letters of opposition, citing concern for an unnamed creek near the proposed sewer plant, but EPD recently approved the plan subject to several design changes.

"I think it's a mistake," Wheat said after hearing of the state's approval. 'We've had a lot of problems in that area in the past." The city annexed a business park near the Pavilion several years ago after its sewer system failed.