In 'strategic' move, city of Wilmington will buy downtown's Salvation Army site
The city of Wilmington will buy the Salvation Army property on the north end of downtown for approximately $4.8 million.
City leaders say the purchase is a “strategic” move intended to facilitate economic development and give the city more control as land in the area develops. In recent years, Wilmington has bought several nearby parcels with the goal of developing a “northern gateway” to usher visitors and locals into downtown.
The Wilmington City Council unanimously approved the purchase of the Salvation Army’s nearly 24,000-square-foot building and its 1.88-acre lot on Tuesday. City leaders are under contract to purchase the site, at 820 N. Second St., and could close on the deal as early as next week, according to Aubrey Parsley, the city’s director of economic development.
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“In acquiring this property, the city will have in its portfolio another economic development asset downtown,” Parsley told the council on Tuesday. “It’s a complement to the current portfolio of Project Gateway being immediately north of this property and provides additional opportunity for the city to shape the way in which the north end of downtown develops.”
City Manager Tony Caudle entered into a purchase and sale agreement with the Salvation Army in July, placing $30,000 into an escrow account until the sale closed, according to city documents. The amount paid for the property is set to cover closing and due diligence costs along with the property’s operating expenses for the rest of the fiscal year.
Parsley told the city council that the Salvation Army would be given a 90-day lease-back period from the closing to relocate and move belongings from the site. The period would also allow the organization to coordinate with other groups to provide services to individuals using its overnight shelter.
During a discussion of the sale, council member Charlie Rivenbark encouraged Parsley to extend the lease-back period to 120 days.
The Salvation Army is building a community center and shelter facilities off of MLK Parkway. The nonprofit purchased the 22-acre site near Wilmington’s Creekwood neighborhood in 2016.
To pay for construction of the new facilities, the nonprofit launched a fundraising campaign and plans to rely, in part, on proceeds from the sale of its downtown site.
The purchase of the Salvation Army site adds to Wilmington’s growing land portfolio on downtown’s northern end.
In 2017, the city bought the land at 1020 N. Front St., the former site of an equipment rental facility, for $2 million with the intention of moving forward with a public-private development partnership to improve the entrance into the city. The city also owns lots at 908 and 922 N. Front St. along with 901 N. Third St.
Although the COVID-19 pandemic and a fluctuating real estate market have slowed development of the northern gateway, former Wilmington media manager Jennifer Dandron told the StarNews in October that work on the project is "progressing steadily" and still includes plans for a long-awaited downtown grocery store.
Reporter Emma Dill can be reached at edill@gannett.com.
This article originally appeared on Wilmington StarNews: City of Wilmington to buy downtown Salvation Army
