Project Grace

The primary goal of the project is to have a new, purpose-built, modern facility in downtown Wilmington that brings the Public Library and Cape Fear Museum together and meets the specific and unique needs of both, creating new synergy in services and enhancing the visitor's experience.

It can serve as a catalyst for continued momentum and growth in downtown Wilmington and all of New Hanover County. And the strategic use of this county block could bring substantial financial and social benefits to our community with the introduction of world class, state-of-the-art library and museum facilities. Additional focus into the arts, learning, and culture sectors can lead to better branding and market recognition for our city and county, as well as enrich the overall community.

In late 2022, after the county did not receive financing approval for the lease agreement with Zimmer Development and their withdrawal from the project, Cape Fear Development expressed interest in the project. Cape Fear Development is a local company with deep communities ties, and the county has had a successful relationship with them through the government center redevelopment project, which is structured as a public-private partnership. This new agreement for Project Grace has been structured similarly to that of the government center site.

After expressing potential interest in the project, Cape Fear Development spent nearly five months analyzing the county's purchased plans, evaluating the merits of the project, and engaging with the community for feedback using their own time and resources at no cost to the county. 

In the review of the purchased plans, Cape Fear Development has been engaged with the existing design and construction team — LS3P and Monteith Construction — and identified $4.6 million in potential cost savings using “value engineering” techniques. Cape Fear Development also engaged with multiple community groups and organizations about the project and heard very positive feedback, with the majority of people wanting to see the project move forward.  

After their extensive research, Cape Fear Development determined they wanted to be a partner in this project and, at the end of March, they presented their findings to the Board of Commissioners at an agenda review meeting. At that time, Commissioners agreed to move forward with a development agreement and for staff to negotiate the terms of the agreement to bring a state-of-the art library and museum to the block with compatible and timely private investment.

The new development agreement with Cape Fear Development utilizes the same architectural design of the library and museum that was part of the previous agreement, including the location on the northside of the property to ensure continuity of operations for the current library. In addition, the agreement outlines several key terms for the project including: 

• The cost to the county for construction of the new museum and library, parking deck improvements and development fee is not to exceed $55,942,679. The county will then finance this amount and pay interest over the life the debt. This differs from the previous development model of a lease financing option. 
• Cape Fear Development will undergo a competitive rebid process for the project, utilizing three subcontractors for each trade and New Hanover County will engage a third-party construction consultant, who will provide an independent review of the work generated. A construction manager at risk model will be used, to ensure the project can be delivered at or under budget. 
• Once the new museum and library facility and parking deck improvements are substantially complete, the county will sell the south parcel of the property to Cape Fear Development for mixed-use private development.  
• Cape Fear Development has committed to pay no less than $3.5 million for the south parcel property. Two appraisals will also be conducted for the property, and Cape Fear Development will pay the higher of the two appraisals if it is more than $3.5 million.  
• Within 24 months of the land sale, Cape Fear Development will begin construction of a mixed-use development, which may include a combination of commercial and residential space, on the south parcel (where the existing library is located). The private investment will be the greater of $30,125,838 or 25 percent of the cost of construction and renovation of the entire project.  
• The existing parking deck, once improved, will be shared between the county and Cape Fear Development on mutually agreed-upon terms. 

You can view the entire development agreement here.

The development agreement with Cape Fear Development stipulates that the cost to the county for the construction of a new museum and library, parking deck improvements, and the development fee is not to exceed $55,942,679. The county will then finance this amount and pay interest over the life the debt. This differs from the previous development model of a lease financing option. Given the county’s AAA ratings, the county will be able to borrow at the lowest interest rate possible. 

Cape Fear Development will undergo a competitive rebid process for the project, utilizing three subcontractors for each trade and New Hanover County will engage a third-party construction consultant, who will provide an independent review of the work generated. A construction manager at risk model will be used, to ensure the project can be delivered at or under budget. 

Additional costs, including those for exhibit design and fabrication, furniture, fixtures and equipment, will be part of the total project budget presented in July to Commissioners. These costs are outside of the $55.9 million that the county would issue debt for.

The new purpose-built Public Library and Cape Fear Museum building would be 95,000 gross square feet, inclusive of the building footprint, loading dock and bay, and large outdoor terrace. It would be a modern space that brings the library and museum together to enhance the visitor's experience. 

The library space will include spaces for adults, children, teens, and local history; and the museum space will include an immersive theater, interactive and engaging galleries, and space for a changing gallery. In addition, shared space in the building will include multi-purpose rooms and an outdoor terrace.

The library will continue to provide adult services, children services, and local history services, and will be adding enhanced teen and tween services to ensure all our citizens have a place to learn and grow. The library will have shared multi-purpose space for more programming opportunities, as well as a lot of natural light to ensure it is a welcoming and open space.

The project plans ensure that library service remain on the block for the entire duration of the project - so that there is continuity of services for the majority of the project. The downtown library would remain in its current location until the new building on the other side of the block is ready to move into. At that time, work would take place to move the library into the new facility, with only temporary closures for patrons.