Much has been said about New Hanover County’s attempts to buy the Cheetah Premier Gentlemen’s Club property.
And why not? That headline would command attention nearly anywhere, plus it comes on the heels of other high-profile government real-estate deals like the county’s government center, Project Grace, the former Bank of America building purchase, and the former PPD building.
But there’s some important things that haven’t been said about the county’s plan.
If you haven’t followed along, here’s a recap. On November 6, County Manager Chris Coudriet added a motion at the end of the county commissioner’s meeting to authorize $2.4 million in funding and hire a law firm to handle the eminent domain claim. It had not been on the published agenda, and only referred to the strip club property cryptically by its tax parcel number. Commissioners voted unanimously to approve it without discussion.
The move was a surprise to both the public and the property owners. While the county had hired a broker to contact them, he had not disclosed his client–a significant omission, since the possibility of the government declaring eminent domain is basically an offer you can’t refuse.
The next day, the county’s press team issued a brief statement essentially saying, “We needed more parking and we have the legal right to do this,” but otherwise refused to answer questions. Commissioners were also buttoned up; one told me they were sending all comments through the county’s attorney.
That didn’t last. Within a few days, commissioners were at pains to add some nuance to the story–chief among them Dane Scalise.
The wording of the actual November 6 motion, read by Chair Bill Rivenbark, was: “The Board of Commissioners hereby declares its intent to exercise the county’s eminent domain authority.” Given that blunt language and the county’s silence, I could forgive people for misunderstanding it.
Both Scalise and vice-chair LeAnn Pierce have expressed strong support for private property rights, making it understandable they would want to distance themselves. This week, Scalise repeated his earlier claims that the county had only ever voted to “explore” eminent domain and moved to rescind last month’s motion.
Commissioner Rob Zapple agreed, saying a voluntary acquisition was “where we have been headed all along.” The motion passed unanimously.
But that still leaves a fundamental question: Why is the county’s custom-built, state-of-the-art, $50-million government center so woefully short on parking?
Some have suggested that the county simply wanted to remove Cheetah for moralistic or aesthetic reasons, especially after State Treasurer Dale Folwell lampooned county officials for setting up shop next door to a strip club. (The county’s new HQ is next to its old one, so they had already been neighbors with the club for two decades; the county denied Folwell’s comments motivated their decision.)
But internal communications do indicate parking was a real concern. Back in August, chief facilities officer Sara Warmurth described safety concerns, poor “customer experience” for residents, employees losing productivity while searching for parking spaces (which forced the county to utilize a shuttle for offsite parking), and tensions with the neighboring bowling alley in an internal memo to Coudriet.
Warmurth said demand had exceeded a 2021 parking study, driven by increasing staff, fewer employees working remotely, and the closure of the only other bowling alley in town. She proposed “purchasing the property that is west and adjacent to the government center building”–that is, the strip club–“to address the situation effectively.” Doing this would garner the county 83 new spots.
Warmurth’s memo still prompts several questions, like why had the study not accounted for staff growth and a return to office post-pandemic?
Government center developers contend there is enough parking, or at least that there will be once work surrounding it is complete. Developer Mike Brown told me that, despite the changes, there will actually be 88 more spots once the Board of Elections facility phase of the project is done in summer 2024. The private mixed-use residential phase will also add parking spots that Brown expects to be available during work hours.
In the end, Brown said the whole area–including the strip club, bowling alley, government center, and private development–is expected to have 890 parking spots, with a peak demand of around 750.
Will every spot be convenient for government employees? Probably not. Will walking across the parking lot on a rainy day be a bummer? Likely. Is that justification for spending $2.4 million? That’s up to the commissioners.
– Benjamin Schachtman
(Disclosure: Zapple is a member of WHQR’s governing board, which has no role in editorial decisions.)
We’re taking a two week publishing break for the holidays and we’ll be back in your inbox on Jan. 4. Catch up on an audio conversation on last week’s edition of The Dive here, or contact us with story ideas and feedback at wilmington@theassemblync.com.
Port Report
A conservative think tank has some bold ideas for the state port authority. Among them: outsourcing operations wherever possible to improve efficiencies and save taxpayers money.
The conservative nonprofit John Locke Foundation didn’t necessarily conclude that the North Carolina State Port Authority’s operations are bloated. But it did suggest that like-minded leaders and legislators adopt its cost-saving–albeit occasionally dramatic–suggestions.
The port authority has 250 employees across its three bases, which include an inland rail facility in Charlotte and ports in Morehead City and Wilmington, with Wilmington being its largest and busiest asset.
Donald Bryson, the Raleigh-based group’s CEO and president, acknowledges its latest report contains a lofty request. “Politics, as Otto von Bismarck said, is the art of the possible. And fully contracting out all of the port authority services may not necessarily be politically possible or functional,” Bryson said.
A spokesperson for the port authority didn’t directly address whether its leaders had any response to the report’s various recommendations. But U.S. Rep. David Rouzer, a Wilmington-based Republican, said the report “substantiates North Carolina’s position as a gateway to the world and makes a number of recommendations that will benefit our efforts to strengthen our ports and drive even more economic activity.”
The port authority is reliant on state appropriations via the perennial budget cycle. The foundation suggests those costs could instead be borne by third-party owner-operators as well as shipping companies that rely on port assets.
The group also calls for significant legislative reform to expand the use of public-private partnerships to allow private companies to build, own, and operate terminals at state facilities.
Over the past five years, the port authority has invested at least $356 million in infrastructure improvements. State funds support about 81 percent of capital expenditure, and the group argues that tying those funds to the politicized budget process risks losing the port’s competitive edge.
Though the Wilmington port consistently tops national efficiency rankings, it’s notably smaller than its East Coast peers like Savannah and Charleston.
The port has been pursuing plans to deepen the river channel to accommodate heavier vessels for years, a feat that would cost close to $1 billion. The state legislature set aside $283 million for the project in 2021 and future federal appropriations are supposed to cover the rest.
Dredging costs will eat up the lion’s share of the final tally. And as many local governments know from the shoreline protection cycle, dredging can be prohibitively expensive. Protectionist policies enacted a century ago require much of the work to be done by U.S. vessels, even as other countries can do it at a fraction of the cost.
The foundation argues those rules should be reformed, too.
“The requirement that things have to be made here and built here and owned here–sometimes that’s a good thing and sometimes it drives up costs,” Bryson said.
– Johanna F. Still
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Around the Region
Switcheroo: Novant fired its coastal region president this summer, and now UNC Health Rex president Ernie Bovio has been tapped to take over early next month, Greater Wilmington Business Journal reports.
Soft Landing: Developers of the first hotel planned for Wilmington’s airport are facing financial difficulties, Port City Daily reports. They’ve asked for an extension on their lease to get their money in order.
Buoy Beginnings: Two energy companies who won offshore wind leasing rights last year aim to deploy buoys off the coast of Brunswick County. Development is still several years out, but the Brunswick Beacon reports this step will help shape plans.
Loose Watch: An inmate who nearly died during an attack is suing the Columbus County Sheriff’s Office for what he alleges was a lax surveillance environment, The Border Belt Independent reports. WHQR also has a radio segment on the story.
Around the State
How Morrisville Became a U.S. Cricket Capital
With a booming South Asian population, a world-class pitch, and a growing network of teams, the sport has put a Raleigh suburb on the international map.
Presumption of Guilt
Garnell Hill has never been accused of abuse or neglect. But DSS has kept his son in foster care for more than five years.
Fill ‘er Up
Roll down the window and put the car in drive as Kate Medley takes us to the gas stations that feed and fuel our state.
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