No, there aren't any term-limits in the NC Assembly. He was (is) still regarded as an effective legislator, but his career in the NCGA has seen better days. He's wanted to be mayor for a while, so this seems like a good capstone for his career.
That was one of the criticisms the folks who were calling for a special election had. Officially, the council couldn't do anything to ensure the Cannon replacement wouldn't run in 2015. That said, I doubt he goes for it, and the optics would be terrible if he did.
Meh. Give him a year of good governance and most voters, plus even a majority of pols, won't mind if he goes back on his promise to be a placeholder.