Marina repair, floor rental among resolutions approved at Wilmington City Council meeting
WILMINGTON, NC (WWAY) — Wilmington City Council approved a number of resolutions that could bring new tenants to downtown and repairs to a downtown marina.
Council unanimously approved a resolution authorizing a lease to the United States Government Services Administration for approximately 7,921 square feet on the fifth floor of the City-owned office building located at 115 N. 3rd Street. The city would also lease 28 parking spaces on the top floor of the City-owned parking deck located at 114 N. 2nd Street.
The lease proposal would provide the City with an initial 10-year lease, and an initial annual total rent rate of approximately $498,000, with periodic increases, and including approximately $91,000 in annual revenues for the parking fund. There would also be an option for an additional five-year renewal of the lease.
In order to lease the facility, the City must provide improvements to the building and parking deck that are expected to cost approximately $1,800,000, based on initial cursory estimates. Of that total, approximately $600,000 would be amortized for the ten-year initial term of the lease, with the remaining amount to be reimbursed to the City upon delivery of the space to the GSA for occupancy, which is currently expected to be January of 2026.
The move would bring the building’s occupancy rate in the building up to approximately 55%, and feel a 10-year federal government lease will be a solid attraction for investors looking for dependable cash flow.
Council then unanimously approved a resolution to declare ten city properties as surplus, which would allow for the eventual sale of these properties. The timing and procedures for divestment have not yet been determined.
The properties proposed for surplus are 820 N. 2nd 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 one property with no address.
As part of the consent agenda — Council approved resolution to lease 3194 square feet of office space on the 4th floor of the Skyline Center to Protocase USA. The initial term is three years with the ability to extend for an additional four years.
Council also unanimously approved a $1.16 million construction contract with Harp Builders, Inc. to adjust and level the concrete portion of the Riverwalk that runs adjacent to the Pier 33 Marina.
City officials say this section of Riverwalk is not level in places and retains standing water. with complaints about these issues having started just one year after that portion of the Riverwalk was built in 2014.
City division project manager Mike Naklicki explained how the project will adjust and fix the Riverwalk.
“They are going to inject what is called a polyurethane grout, initially deep into the soils to stabilize the poor soils underneath and bridge over those soils and then it will also allow them to continue to inject this product and lift the concrete slabs back into their original elevations,” Naklicki said.
Some concrete slabs will likely have to be replaced as adjustments are made.
City documents say construction of the project is expected to start in September, but Naklicki said it’s more likely to start in October, and the project will take up to three months to complete.
Each of the unanimous votes were 6-0 rather than 7-0, because Councilman David Joyner is in Chicago for the Democratic National Convention.
