Print
Government

County Tweaks Project Grace Agreement; LGC Could Vote Thursday

By Johanna F. Still, posted Sep 19, 2022
The Local Government Commission will consider taking action on New Hanover County's public-private partnership Project Grace at its meeting Thursday. (Rendering courtesy of New Hanover County)
New Hanover County has updated its memorandum of understanding with the developer planning Project Grace, the public-private partnership that could deliver a new museum and replacement library to downtown Wilmington. 

N.C. State Treasurer Dale Folwell first aired concerns with several aspects of the project when county officials presented the deal at the Local Government Commission meeting last month.

Last Thursday, Folwell wrote a letter to county officials formally seeking three amendments to the county's arrangement with Zimmer Development Co. The county responded the following day, and on Monday morning, the board of commissioners adopted two out of three of the treasurer’s requests

The LGC, which Folwell chairs, has the power to authorize the county’s lease agreement with Zimmer. 

Last month, the board of commissioners publicly urged the treasurer to place Project Grace on the LGC’s September agenda. The item appears on the LGC’s consent agenda for its Thursday meeting. 

Reached Monday afternoon, Folwell said he anticipates the LGC will discuss Project Grace Thursday (typically, consent agenda items at the local government level are voted on in bulk and not discussed unless specifically pulled). 

Asked if he was pleased the county made two of three concessions, Folwell said yes, but the unincorporated item “smells the worst.”

One concession involves the county removing a reference to its agreement to purchase design plans for up to $2.5 million from Zimmer contingent on LGC approval. Another ensures that any future change orders in the lease amount would have to go back to the LGC for approval. 

The unincorporated element involves the sale of land to the developer. 

In his Sept. 15 letter, Folwell had asked the county to reconsider its decision to sell 1.2 acres downtown (roughly one-third of the block it owns and is trying to redevelop) directly to Zimmer. Under the county’s arrangement with Zimmer, the company will obtain the land for $2.65 million (or the current fair market value) and the county will be able to impose certain restrictions to guide its future development it otherwise would not be able to.

In 2017, the county obtained a carve-out for a state law that exempted the specific block from a chapter of state law that governs public contracts. 

Instead of engaging in the disposition of the land with the developer privately, Folwell asked that the property undergo a typical public bid and upset process and allow Zimmer to have the right to beat the bid. “The point here is for the market to determine the value of the property,” he wrote. “Utilizing a standard upset bid process would preclude us from placing the necessary restrictions on the sale,” she wrote. ​

In the county’s Friday response to Folwell, assistant county manager Lisa Wurtzbacher highlighted local governments’ inability to impose restrictions on the sale of public property and said utilizing its statutory exemption “is the most appropriate method” for this deal. 

During the county meeting Monday morning, Wurtzbacher said design work on the project is ongoing. She also referenced rising interest rates. She said, “The longer that we wait, the more this project costs." 
Ico insights

INSIGHTS

SPONSORS' CONTENT
Burrus rob headshot 300x300

Celebrating Student Entrepreneurs and Global Entrepreneurship Week at UNCW

Robert Burrus - Cameron School of Business - UNC-Wilmington
Headshots march websized 2

After the Storm: How to Inspect and Repair Your Roof

David Grandey - Highland Roofing Company
Web awstaffpic2020 1 132245438

The 2024 Luncheon for Literacy featuring Special Guest Jason Mott

Alesha Edison Westbrook - Cape Fear Literacy Council

Trending News

Wilmington Fintech Investment Firm Announces $750M Capital Raise

Audrey Elsberry - Dec 6, 2023

Ohanafy Launches Supply Chain Platform, Prepares For Funding Round

Audrey Elsberry - Dec 5, 2023

New Hanover Leaders To Consider $6.7M For New Industrial Park

Emma Dill - Dec 6, 2023

Residential Real Estate Firm Announces Additions To Its Team

Staff Reports - Dec 5, 2023

Officials To Discuss Cleanup, Sale Update For Navassa Superfund Site

Staff Reports - Dec 6, 2023

In The Current Issue

Law Allows Savers To Boost Accounts

The Roth-only catch-up provision for higher earners was supposed to take effect in 2024, but lawmakers realized that many workplace retireme...


Jones Keeps City’s WWII History Alive

“I’m 89 and continue to work 24/7, 365 days a year to preserve the history of my hometown and native state,” said Wilmington historian Wilbu...


Ready Money: Seniors Provide Floor For Region's Economy

An economist said many seniors hold sizeable assets that are plowed back into the community for housing, food, health services and other use...

Book On Business

The 2023 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2023 Power Breakfast: Major Developments