Marina repairs and ground rent are among resolutions passed at Wilmington City Council meeting
WILMINGTON, NC (WWAY) — The Wilmington City Council has approved a series of resolutions that could bring new tenants to downtown and allow for the repair of a downtown marina.
The council unanimously passed a resolution authorizing the United States Government Services Administration to lease approximately 7,921 square feet on the fifth floor of the city’s office building at 115 N. 3rd Street. The city would also lease 28 parking spaces on the top floor of the city’s parking deck at 114 N. 2nd Street.
The lease proposal provides the City with an initial 10-year lease with an initial total annual rent of approximately $498,000, with periodic increases and including annual revenue of approximately $91,000 for the parking fund. There is also an option to extend the lease for an additional five years.
In order to lease the facility, the City must make improvements to the building and parking deck, which initial rough estimates suggest are expected to cost approximately $1,800,000. Of this total, approximately $600,000 would be amortized over the initial ten-year term of the lease, with the balance to be refunded to the City upon delivery of the space to GSA for occupancy, which is currently expected to occur in January 2026.
The move would increase the building’s occupancy rate to around 55%, and we believe a 10-year lease with the federal government should be a real attraction for investors looking for reliable cash flows.
The council then unanimously passed a resolution declaring ten city properties surplus, which would allow for the eventual sale of those properties. The timing and procedures for the sale have not yet been determined.
The properties proposed for the surplus are 820 N. 2and Street, 901 N. 3rd Street, 908 N. 3rd Street, 922 N. 3rd Street, 1020 N. Front Street, 825 N. Front Street, 1001 N. Front Street, 1021 N. Front Street, 2451 S. College Rd. and a property with no address.
As part of the consent agenda, the Council approved the resolution to lease 3,194 square metres of office space on the 4th floor.th floor of the Skyline Center to Protocase USA. The initial term is three years with the possibility of an extension for a further four years.
The Council also unanimously approved a $1.16 million construction contract with Harp Builders, Inc. to adjust and level the concrete section of the Riverwalk that runs adjacent to Pier 33 Marina.
City officials say this section of the Riverwalk is uneven in places and is a source of standing water. Complaints about these problems began a year after this section of the Riverwalk was built in 2014.
City Department Project Manager Mike Naklicki explained how the project will modify and repair the Riverwalk.
“They will inject what is called a polyurethane mortar, first deep into the ground to stabilize the poor soil underneath and build a bridge over that soil. Then they can continue to inject that product and raise the concrete slabs back to their original height,” Naklicki said.
As part of the adjustments, some concrete slabs will probably need to be replaced.
According to city documents, construction on the project is scheduled to begin in September, but Naklicki said it is more likely to begin in October and take up to three months to complete.
The unanimous votes ended 6-0 instead of 7-0 because City Councilor David Joyner is in Chicago for the Democratic National Convention.
