Since the city of Wilmington’s $68 million purchase of the Skyline Center in July 2023, officials have announced a strategic plan to offset the cost through the sale of surplus properties. The recent approval to sell three of these parcels could make way for a downtown grocery store.
At the Dec. 3 city council meeting, councilmembers unanimously approved a $1.7 million bid on 305, 315 and 319 Chestnut St. from Cape Fear Holdings, LLC.
The 305 Chestnut Street location was once home to the city’s largest office building. After being declared surplus, demolition of the building began onsite on Nov. 19 of this year.
With the city closing on the sale of several additional surplus properties this year, the potential Chestnut Street sale sparks conversation about what the proposed change, among others, could bring to the Port City.
More on the proposed grocery store: What’s planned and why it matters
On Dec. 3, 2024, Wilmington City Council unanimously approved a $1.7 million bid on 305, 315 and 319 Chestnut Street, Wilmington. The potential sale could bring a grocery store downtown.
The need for a downtown grocery store is included in the city’s comprehensive plan, Aubrey Parsley, director of economic development for the city, said at Tuesday’s city council meeting.
“The city has been after this use for quite some time,” said Parsley, later adding “It’s no secret that there is a food desert on our … Northside community.”
The recent bid was submitted with a deed restriction, limiting the principal use of the property to a retail grocery supermarket for a minimum of 10 years, Parsley said, a provision that “certainly sets (the bid) apart from other bids (the city has) received in the past.”
The current bidder has a prior history of constructing grocery stores in the area, including Publix locations in Pine Valley and Carolina Beach, among other brands and locations across the state.
Conversation sparked among councilmembers about the potential competition between the Northside Food Co-op at the intersection of 10th and Post streets and the proposed grocery store.
“It’s nice to have options, I don’t know how this project might affect that project but there’s nothing wrong with having more than one option,” Parsley said. “I don’t know that the two would necessarily compete but we’re certainly open to establishing a line of communication with the folks that are working on that project.”
Mayor Bill Saffo provided examples of grocers and food co-ops coexisting in similar locations in other North Carolina cities like Raleigh, Asheville and Charlotte with Councilmember Salette Andrews agreeing.
Councilmember Kevin Spears talked about heightening the design of the Northside Food Co-op with the new proposal in mind.
“Here’s an opportunity for all people that are involved, again, to step it up,” Spears said. “The people on the northside don’t want to be slighted.”
In total, the three properties are currently zoned as Central Business District and amount to approximately 1.65 acres.
With 305 Chestnut St. under demolition, the city provided an update on the status of 315 Chestnut Street, noting that as of Nov. 19, IT equipment on site was in the process of being relocated, with demolition set to follow. Meanwhile, 319 Chestnut St. remains a parking lot.
If no upset bids are submitted for the properties before Dec. 19, the sale between the city and Cape Fear Holdings LLC will close within one year.
Related Coverage: How Wilmington’s latest round of surplus properties could bring more development downtown
What other surplus property has the city sold?
The home located at 226 S. Front Street was part of a settlement between the city of Wilmington and business owner Peter Koke. Under city ownership, the property was declared surplus and sold in conjunction with 222 S. Front Street for a total of $600,000 in February 2024.
Since the sale of the Skyline Center, the city has generated a total of $3,122,500 from the sale of five surplus properties:
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222 S. Front Street and 226 S. Front Street
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Buyer: Urban Building Corp LLC
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Two additional properties are set to close come January 2025:
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908 and 922 N. Front Street
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Sale price: $2.1 million.
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Lot size: The city would sell 0.92 acres but receive 0.18 acres of land and gain 48 feet of frontage on N. Third Street. Collectively, the acreage amounts to a net 0.74-acre sale.
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Sale date: Council approved Oct. 1, 2024. Set to close January 2025.
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Buyer: ILM Downtown Holdings LLC.
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As part of the StarNews’ public records request, the city provided status updates on four additional surplus properties:
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115 N. Third Street
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Status: City employees vacated. Third party tenants remain. Declared surplus. City owned.
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210 Chestnut Street
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Status: Adjacent surface parking lot to 115 N. Third St. Declared surplus. City owned.
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155 N. Second Street
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Status: Adjacent public parking deck. Declared surplus. City owned.
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Related coverage: Wilmington City Council approves millions for upgrades at the Skyline Center. Here’s why.
More on Skyline Center
Skyline Center in downtown Wilmington.
With the goal of selling surplus property to offset the cost of Skyline Center, the city previously said additional revenue from tenant leases will help cover operational expenses.
As of August, the city had secured nine tenant leases, generating a total of $2.4 million annually. Four other leases pending at the time were expected to generate an additional $760,000, bringing total annual revenue to approximately $3.16 million — offsetting 80 to 85 percent of operation expenses at Skyline Center.
The city’s communications office previously said that consolidation of city operations into the 929 N. Front St. location allowed for the city to avoid more than $5 million in repairs and maintenance across aging city properties. The purchase also allowed for approximately $55 million in savings compared to construction alternatives, which included the redevelopment of 305 Chestnut Street, among other projects.
In October, city council approved $6.3 million in funding for upgrades to three floors of the Skyline Center, including construction of council chambers and upfits to the City Clerk’s Office. The funding was allocated from a FEMA reimbursement, unallocated loan funds, Convention Center fund repayment, and unallocated General Fund monies.
This article originally appeared on Wilmington StarNews: Wilmington, NC, could see a Publix store and more after surplus sales