Concerns over public support, mayor involvement could put Holden Beach pier purchase on hold
The town of Holden Beach's plan to purchase a pier and adjacent building could be put on hold after the N.C. Local Government Commission raised concerns about its financing application.
The town was set to close on the two-parcel, 1.9-acre property, which includes the pier, parking lot and adjacent building for just around $3.3 million at the end of February.
The deal, which has garnered mixed reactions from residents, was contingent on the town receiving financing from the Local Government Commission during its Feb. 1 meeting.
But Holden Beach's financing application was not on the February agenda.
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According to an email the commission sent the town in January, Holden Beach's financing application will be kept off the agenda until several concerns can be addressed by the town.
Concerns include public opposition to the purchase, even greater opposition to the parking plan meant to pay for the pier, the pier structure's evaluation, and the involvement of Mayor Alan Holden's real estate company, according to commission financial analyst Joe Futima,
"These concerns are taken seriously by the Commission and there needs to be more time for the Town to better address them," Futima states in the email. "We will reevaluate the application for a March placement."
According to Holden Beach Property Owners Association President Tom Myers, the concerns brought by the commission are the same ones property owners have been expressing for months.
Myers said while some residents are glad the commission stepped in, others say the opportunity for the town to purchase the land is too good to pass up, despite any setbacks.
"At this point, everybody's entrenched and it's been going on since June," he said. "It's still the same arguments that we've been hearing from each side."
The commission noted the assumptions made in the town's plan to pay back the financing were "less than certain." Town officials have maintained they would not increase property taxes for the purchase and would instead use parking revenue and could potentially lease the pier and building.
The commission also flagged the pier's evaluation as a concern.
According to the town's pier inspection report, the structure has “likely surpassed its remaining service life” and is in need of immediate maintenance.
"The hardware throughout the structure is heavily corroded, with greater than 50% section loss," the report stated. Immediate repairs needed would cost at least $500,000 and would extend its service life by 10 to 15 years, according to the report.
Due to bad weather, however, the scope of the pier assessment was limited and did not include an underwater assessment, meaning the full extent of its condition and the maintenance it needs is still unknown.
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Holden Beach officials did not respond to requests Monday for comment from the StarNews.
Reporter John Orona can be reached at 910-343-2327 or jorona@gannett.com.
This article originally appeared on Wilmington StarNews: Holden Beach pier purchase on hold after concerns from NC Government
