Wilmington City Council has declared multiple properties on the north end of downtown, along with a former Wilmington police command center, as surplus.
Proposed at Tuesday’s city council meeting, the resolution was unanimously approved, authorizing the city to move forward with divesting the properties in collaboration with commercial real estate service providers. It’s the latest in various properties the city has declared surplus, many of them downtown.
With all northern waterfront properties currently zoned for the Central Business District, the decision could eventually open the door to more redevelopment along the city’s waterfront.
Here’s what to know.
What properties were recently declared surplus by Wilmington City Council?
In total, approximately 11 acres of undeveloped city-owned property were declared surplus as part of Tuesday’s vote:
- 820 N. Second St.
- 901 N. Third St.
- 908 N. Third St.
- 922 N. Third St.
- 1020 N. Front St.
- Non-listed address
- 825 N. Front St.
- 1001 N. Front St.
- 1021 N. Front St.
One additional property, the former Southeast Command Station for the Wilmington Police Department, was also declared a surplus. The property, located at 2451 S. College Road, sits on just under an acre.
Why are these properties being declared surplus?
Declaring the nine northern waterfront properties as surplus, in addition to the Southeast Command Center, is expected to ultimately “strengthen the City’s financial position, enhance the City’s tax base, further develop and enhance the City’s Central Business district, and possibly bring about other benefits,” according to the resolution.
The original purchase of the properties was part of a larger-scale initiative which began in the early 2000’s, aiming to revitalize Wilmington’s downtown, the city’s communications office said in an email to the StarNews.
“This effort involved acquiring certain parcels to better guide development in line with this vision,” the city’s communications office said. “Today, the city’s downtown is now home to a thriving convention center, award-winning outdoor music venue, modern residential, dining, and retail options, and a 370,000 square foot office building.”
As a result of the success of the revitalization effort, the city can now divest these properties with confidence that downtown Wilmington will continue to positively develop, the city’s communications office said.
What will the proceeds be used for?
Proceeds from surplus property sales have generally been used to offset the acquisition costs of Skyline Center, the city’s communications office said in an email to the StarNews.
“Proceeds will also expand the city’s capacity to pursue and finance large capital improvement projects,” the city’s communications office said.
Prior to Tuesday’s city council meeting, the city finalized the sale of five additional properties, including two former office buildings, and eliminated an office lease, according to a document provided by the city’s communications office. The combined proceeds from these transactions, totaling $3.1 million, were used to reduce the cost of acquiring the Skyline Center.
Value estimates of surplus property associated with the transition into Skyline Center could reduce the $68 million price tag by half with continued divestment, according to the document.
The divestment of aging facilities has also allowed the city to save on redevelopment and repair costs. Declaring the Southeast Command Center a surplus property and eventually selling the property will save $28 million in forthcoming facility expenses, according to the document.
Related coverage: Manufacturing company joins growing list of tenants at Wilmington’s Skyline Center
What happens next?
The future of the properties will ultimately be reviewed again by the city council.
“The specific disposition methods by property have not yet been chosen,” Aubrey Parsley, director of economic development for the city, said at Tuesday’s city council meeting. “Those will be subsequent council actions that we bring before (the council) to vote on in the near future.”
City council recently voted to authorize brokerage services on an on-call basis, the city’s communications office said in an email to the StarNews.
“This will help to expedite the surplus property divestment process,” the city’s communications office said. “The next steps involve seeking proposals from our on-call brokers for selling properties and conducting due diligence in preparation for placing properties on the market.”
The city will contend with several as the divestment of these surplus properties moves forward.
“The marketing and sale of larger downtown properties such as these generally takes longer, is more complex, and requires more due diligence than smaller real estate transactions,” the city’s communications office said.
