Public-private partnerships could continue to transform Wilmington’s downtown for many years to come, officials say.

They say P3 projects like those under consideration or underway in the Wilmington area can attract additional investment. Potential sites include a New Hanover County-owned downtown block and property the city owns or hopes to buy, along Wilmington’s northern gateway.

A current example is the Water Street parking deck redevelopment.

“The local government might wish to send a signal to the market, a signal to other developers that local government cares about the area in which it is investing so they are agreeing to share the risk with the private sector,” said Tyler Mulligan, an associate professor at the University of North Carolina’s School of Government who focuses on community revitalization and economic development.

The city of Wilmington contracted with the School of Government’s Development Finance Initiative (DFI) for $50,000 to look at the best use and highest-return possibility for the Water Street deck property. The DFI partners with local governments throughout North Carolina to attract private investment for transformative projects by providing finance and development expertise.

The work by the city and DFI led to River Place, a major mixed-use development by East West Partners that will replace the defunct Water Street parking deck with new parking, residential and commercial space. To prepare for demolishing the old parking deck, crews were (as of press time) working on moving utilities that had been integrated into the deck.

“With more than $55 million in private funding combined with the city’s public investment, we continue to improve and enhance our historic downtown with the River Place project,” said Wilmington Mayor Bill Saffo in his State of the City address Jan. 30.

P3 arrangements are nothing new, and they can often involve parking.

“The public often builds parking because parking doesn’t tend to make money for 40 years … Private investors typically can’t wait 40 years for an investment to pay off,” Mulligan said.

Lately new possibilities for public- private partnerships have emerged in the Wilmington area and beyond.

The town of Shallotte has acquired property and is working with the DFI on a potential P3, Mulligan said.

“They’re looking to do a public- private partnership where the private sector would come in and do the private residential, private commercial development alongside the public sector investment,” Mulligan said.

Another local example includes the downtown block bordered by Third, Chestnut, Second and Grace streets, where the property has a tax value of $21 million and the owner is New Hanover County.

“No taxes are collected on that value,” said Ed Wolverton, president and CEO of Wilmington Downtown Inc., whose organization helped the county find a firm to study the possibilities for redeveloping the block. County officials have agreed to pay $47,750 to Benchmark Planning for a feasibility study looking at the best use and potential market demand for the property.

The block includes the main branch of the New Hanover County Public Library, the library’s Story Park, an EMS facility, a 650-space parking deck, the former county register of deeds office and three surface lots. Any potential development would need to incorporate the library and other public uses, officials said.

A study about the P3 possibilities in another portion of downtown Wilmington might be on the horizon.

In January, the Wilmington City Council approved the purchase of 1020 N. Front St. for nearly $2 million, although the sale was not final as of press time, city officials said recently. But the property could be a key component of a future strategy involving public and private investment.

“The acquisition of this property places the City in the enviable position of being able to influence the appearance of this all-important northern gateway to the downtown,” city staff members said in January agenda documents. “If approved by City Council, the City will own two of the six-parcel tract that lies within the boundaries of 3rd Street, 2nd Street, Front Street and Brunswick Street. Ownership of these parcels will allow the City to work collaboratively with neighboring property in such a way as to ensure that development in this area fits the community vision.”