SAVING GRACE.

• Author: Rakestraw, Emory
• Position: NCTREND: Real estate

A transformational redevelopment in Wilmington has some asking, "At what cost?"

For years, many Wilmington leaders have wanted to put a new shine on a 3-acre downtown block that includes an aging public library and parking deck and a historic former car dealership building. New Hanover County Commission Vice Chair Deb Hays, says what has become Project Grace has the potential to create a transformational learning and cultural hub to showcase the city's rich history.

"This is a complete revitalization of an entire downtown block, currently a blighted block, and an investment in the future of all our citizens," she says of the property, which is owned by New Hanover County. The site is two blocks from the Cape Fear River and bordered by Chestnut, Grace, Second and Third streets.

While the effort has significant community support, some bumps in the road have emerged. One issue is the county's decision to develop Project Grace as a public-private venture instead of a more traditional public project.

In 2018, "request for qualifications" were sent to about 1,000 entities including developers, architects, lawyers, engineers and investors. The goal was to attract lots of enthusiasm for a multiuse development anchored by a new library and relocated Cape Fear Museum of History and Science.

"One of New Hanover County's strategic goals is to leverage public infrastructure to encourage private investment. We began contemplating how to better serve our residents and visitors with purpose-built facilities," County Manager Chris Coudriet says.

But the mass mailings culminated in only one full "request for proposal" that would create a public-private partnership for the project. It came from a business owned by one of Wilmington's wealthiest families. Zimmer Development has completed more than $3 billion of projects in 140 cities. Another unnamed group showed interest but didn't submit a proposal, Coudriet says.

Zimmer went to work, spending hundreds of hours collaborating with residents and local officials amid the COVID pandemic. Project Grace now calls for an $80 million public library and museum to replace the existing site, with the city paying Zimmer a lease of $4 million annually for 20 years.

Additionally, the developer plans 100 apartment units, a 150-room hotel and 10,000 square feet of retail space. The existing 620-space parking deck would be improved in the proposal.

All seemed to be moving ahead until August, when the N.C. Local Government...