A new national chain hotel, restaurant space and apartments could be coming to downtown Wilmington property that has held a local TV station since 1969.

The WWAY facility at 615 N. Front St. could be replaced by "retail (restaurants) on Nutt Street, with hotel & apartments above," according to an application seeking a brownfields agreement that prospective developers have submitted to state officials. The project's estimated capital investment is $50 million and the size of the site is 1.7 acres, the application states.

A brownfields site is property that is abandoned, idled or underused where environmental contamination, or perceived environmental contamination, hinders redevelopment, according to the N.C. Department of Environmental Quality.  A brownfields agreement, the department says, "is designed to break environmental liability barriers that hinder a developer's ability to obtain project financing."

The former WWAY property was purchased by 615 N Front Street LLC for nearly $1.6 million in March, according to the deed registered in New Hanover County.  WWAY began broadcasting from its new location in Leland at the end of April.

The 50-year-old WWAY building in downtown Wilmington "is slated for demolition in the near future," according to the brownfields program application submitted by Robert Stockel, managing member of 615 N Front Street LLC. The building will be vacant as of May 31, the application states.

"Based on preliminary joint venture discussions with a national hotel developer, we estimate that our development of the site would create 500 construction jobs . . . throughout development, 150 full time permanent jobs and over 250,000 gross square feet of retail parking, guest suites and residential living space. Any joint venture would require a brownfields agreement," the prospective developer said in the application.

But Stockel said Monday that planning for the site is in its preliminary stages.

"It's a work in progress," he said "We're still deciding what exactly we're going to do with it."

The partnership involved in the potential redevelopment includes Stockel with 40 percent; Howard Muchnick of New York, N.Y., with 30 percent; Argie Franck of Wilmington with 15 percent; and Alan Rothschild of South Salem, New York, with 15 percent, according to the application.

A non-binding development financing term sheet from First Carolina Bank included in the brownfields application for 615 N. Front St. lists Stockel, Franck, Wilmington Mayor Bill Saffo, Nick Saffo, Doky Saffo and Tony Saffo as guarantors. Franck is a member of the Saffo family.

Bill Saffo, who is a licensed real estate broker, confirmed Monday afternoon that he and immediate family members own an interest in the property after they were approached by Stockel, the original buyer, he said. 

The mayor said the ownership group doesn't have any immediate plans but has kicked around some ideas.

"Downtown Wilmington is a very attractive place today and there's been a lot of investment that's been made over the years, and we just think this is a good site in the heart of it all and a good strategic site," Bill Saffo said. "And at some point in time, whether we sell it to another developer or we develop something on that particular site, we just think it's a good site to own."

As a part-owner, the mayor would have to recuse himself from any Wilmington City Council votes regarding the property should they be necessary, he said.  

The property's current zoning "allows for development up to 150 feet as of right now with a maximum of 240 feet. Ideally, development would begin at the Nutt Street elevation and go up the maximum allowable," the application states.

From the late 1880s to the 1960s, the majority of the site included the Atlantic Coast Line Railroad Car Shops repair building. The property previously used a 3,000-gallon gasoline underground storage tank installed in 1978 that was later closed in with concrete, the application states. "The property also currently uses an approximate 500-gallon diesel AST [above-ground storage tank] for the back-up generator," according to the application. 

The application says the property has a Notice of Residual Petroleum (NRP) deed restriction.

"Prime use of the property would include mixed use (commercial and residential) along with excavation to allow access from Nutt Street. Due to the petroleum release, the property currently contains a NRP deed restriction for commercial use only (restricting residential use)," the prospective developer said in the application. "Additionally, contaminated soil is located along Nutt Street from historic use of the site as a railroad facility, thus hindering redevelopment to Nutt Street level. Cleanup of the site to unrestricted residential standards would be cost prohibitive." 

The current tax value of the property is $1.9 million, the application states.

Through the brownfields program, tax incentives are potentially available to a developer to improve brownfield properties.

"Downtown Wilmington is currently undergoing a surge in redevelopment. The site is one of several properties which has yet to be transformed," the prospective developer wrote. "Redevelopment of this property is expected to have numerous benefits including job creation during construction, creating housing, places to eat and shop in downtown Wilmington, adding to the charm of the nearby Riverwalk." 

A letter on Wilmington Convention Center letterhead included in the application says the convention center "is in support of the brownfield development application for the WWAY site located along Nutt Street to become a multi-use site to house additional hotel, retail and parking. The redevelopment benefits would be welcomed in that it would attract a larger audience to our wonderful Downtown Convention District and serve as a catalyst for economic impact."