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Project Grace
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View of shared Downtown Library and Cape Fear Museum from 3rd and Grace Street
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View of Downtown Library and Cape Fear Museum from Grace Street
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View of Downtown Library and Cape Fear Museum from 2nd and Grace Street
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Library interior architectural rendering
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Cape Fear Museum interior architectural rendering
New Hanover County is redeveloping a three-acre county-owned block in downtown Wilmington that will transform the county’s downtown Public Library, a parking deck, and several underutilized surface parking lots into a purpose-built library adjacent to a modern Cape Fear Museum. The new facility will anchor cultural resources in downtown Wilmington, meet the specific and unique needs of both the library and museum, create new synergy in services, and enhance the visitor's experience.
What's happening with Project Grace?
The New Hanover County Board of Commissioners approved an amended development agreement with Cape Fear Development for the county-owned block in downtown Wilmington, referred to as Project Grace, at the Monday, August 7 regular meeting.
The amended agreement outlines a net cost savings of approximately $4.6 million from the initial development agreement approved in May of this year. Under the amended agreement, the revised guaranteed maximum price will not exceed $55,942,679 for the construction of the new library and Cape Fear Museum facility, inclusive of parking deck improvements and the development fee.
Savings, Design Plans, and Community Benefits
The Board of Commissioners initially approved an agreement with Cape Fear Development in May, and then staff worked with the development team to finalize the design plans. The project was sent out in a competitive bid process, and the work to update the drawings with selected value-engineered options and extensive outreach has yielded significant savings for the county.
The construction includes a new, purpose-built, modern county museum and library facility with features such as a domed theater planetarium and interactive exhibits. Shared spaces will create more opportunities for programs and be a community destination for collaboration.
The development agreement presented in May 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:
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 amendment to the development agreement here.
This strategic cost reduction and planning demonstrate New Hanover County's efficient use of public funds and continuous commitment to the economic sustainability of Project Grace, enhancing the cultural and community benefits of Downtown Wilmington.
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Public Meetings and County Vision
A public hearing on the debt issuance was held at the Board of Commissioners' August 21 regular meeting and can be viewed here Upcoming Meetings and County Vision Upcoming Meetings and County Vision Upcoming Meetings and County Vision Upcoming Meetings and County Vision Upcoming Meetings and County Vision Upcoming Meetings and County Vision Upcoming Meetings and County Vision Public Meetings and County Vision Public Meetings and County Vision. At the meeting, the Commissioners adopted a resolution authorizing the debt issuance application to be presented to the Local Government Commission (LGC) for the revised development agreement. Commissioners and staff joined the Local Government Commission at its September regular meeting to discuss the project application, history, scope and debt issuance.
At its October 3 meeting in Boone, N.C., the Local Government Commission reviewed and approved New Hanover County’s financial proposal for debt issuance of $57 million to fund the construction of a purpose-built, state-of-the-art Public Library and Cape Fear Museum in downtown Wilmington. Redevelopment of the county-owned block will begin in the coming weeks.
Letters of Support
- What is the goal of the project?
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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.
- What is Cape Fear Development's involvement in the project?
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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.
- What is outlined in the new development agreement?
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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.
- How will the project be financed?
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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.
- What would the new public facility include?
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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.
- What services will the library have?
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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.