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.
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 has standing water.
The construction method involves injecting mortar into underlying voids in the soil to improve load-bearing capacity. The construction contract covers the initial mortar injection to stabilize the underlying soil and level the concrete path, as well as spot repairs that may be required over the following two years.
Construction of the project is scheduled to begin in September and will take up to three months to complete.
The three unanimous votes each ended 6-0 instead of 7-0 because City Councilman David Joyner is in Chicago for the Democratic National Convention.
