Council to consider $7.6M increase in Water Street Parking Deck redevelopment

WILMINGTON, NC (WWAY) — The cost to tear down and redevelop the Water Street Parking Deck site in downtown Wilmington looks to be getting even more expensive.

The city today said it is working on a revised agreement with general contractor Barnhill Construction and developer East West Partners to reflect about $7.6 million in additional costs for the River Place mixed-use project. The city says they had to revise cost estimates to reflect construction price increases since the original development agreement was approved in June 2016 and not because of any major changes to the project. The additional cost will be split between the city and East West. The city says its cost would be absorbed in the existing budget and would not impact the city’s newly adopted 2017-18 budget.

“This has been a very collaborative effort in creating a public-private partnership, and we are confident that as the city goes through this necessary process, it will see the value in making these budget adjustments so the project can proceed immediately,” East West owner Roger Perry said in a news release.

According to the city’s own website about the project, the city’s cost to build a new parking facility as part of the River Place project “is estimated at $19.7 million, not to exceed $20.7 million.”

A spokeswoman for the developer said of the roughly $7.5M increase, $3.9M will be the developer’s costs and $3.6M, will be the City’s.

City Council will hold a public hearing and consider the revised agreement at its Aug. 15 meeting.

The city has talked about what to do with the parking deck site for years. It began looking seriously at options for the property back in 2012.

Last summer, council decided on the partnership with East-West to build a 13-story mixed-use River Place project, including 92 luxury condominiums, 79 high end apartments and more than 400 parking places.

The half-century old deck closed last winter. The city broke ground on the project in May.

Categories: Local, New Hanover

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