Loading...
HomeMy WebLinkAboutUrban Waterfront Redevelopment Study-1982m J w z c 0 CP c E 0 V q 01% Y URBAN WATERFRONT REDEVELOPMENT STUDY City of Wilmington, North Carolina April, 1982 The preparation of this report was financed in part through a grant provided by the North Carolina Coastal Management Program, through funds provided by the Coastal Zone Management Act of 1972, as amended, which is administered by the Office of Coastal Zone Management, National Oceanic and Atmospheric Administration. PROJECT DIRECTOR: Justin Little PROJECT TEAM: Arcelia Wicker, Sr. Charles Lilley Hugh Caldwell John Bauer TABLE OF CONTENTS Subject Page INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 EXISTING SITE CONDITIONS Boundary Description . . . . . . . . . . . . . . . . . . . . . 3 Zoning............................. 3 Coastal Area Management Act . . . . . . . . . . . . . . . . . . 5 Flood Plain Ordinance . . . . . . . . . . . . . . . . . . . . 5 General Topography & Drainage . . . . . . . . . . . . . . 7 Taxes, Utilities & Transportation . . . . . . . . . . . . . . . 9 Existing Land Use . . . . . . . . . . . . . . . . . . . . . . 11 Inventory of Existing Improvements . . . . . . . . . . . . . . . . 13 WORK PREPARED UNDER CONTRACT WITH PRIVATE FIRMS Soil & Groundwater Analysis . . . . . . . . . . . . . . . . . . . 15 SummaryAppraisal . . . . . . . . . . . . . . . . . . . . . . . 16 DEVELOPMENT ALTERNATIVES Analysis by City Staff . . . . . . . . . . . . . . . . . . . 17 Options. . . . . . . . . . . . . . . . . . . . . . . . 23 Recommendations. . . . . . . . . . . . . . . . . . . . . . . . 24 APPENDIX Evaluation of Land Uses . . . . . . . . . . . . . . . . . . . . 27 INTRODUCTION The City of.Wilmington owns a 44± acre tract along the Cape Fear River at the western end of Greenfield Street and west of Surry Street. Commonly known as the Old Liberty Shipyard Tract, the site is presently leased to Southern Wood Piedmont Company, a wood preservative firm. The lease expired on December 31, 1981, and negotiations between the City and the company are cur- rently underway. Regardless of whether or not the lease would be renewed, it was evident that the development potential of this valuable City property needed to be analyzed in order to provide the City with information on its highest and best use. This study provides summaries of an appraisal report, a soil and ground- water analysis, and a topographic and drainage analysis. In addition, an analysis of existing conditions, an evaluation of land uses, and redevelopment alternatives are provided. This report was prepared and financed in part by a Coastal Area Management Act Grant of $10,000. All work was undertaken pursuant to the approved grant contract. -1- LOCATION MAP E N ° CITY OF WILMINGTON • O ° r ?l .O N g • �00�6 � � � • � .em w.o,ma w. � �J-1MFXiSYlfll WLR 14GwrSYI� fG1CN _ • - • f • .r,.n q.sff � _ • : U �. WLR { V Mr.wW M 1.. emN s ..m N�a... w,d ••rs � ,•wwLr4�Y_ i ., -r NEW HANOVER COUNTY NORTH CAROLINA NORTH CAROLINA STATE HIGHWAY COMMISSION U.S. DEPARTMENT OF COMMERCE BUREAU OF PUBLIC ROADS Q• A CO,.r• p.• Mwrff6 STATE-WIDE HIGHWAY PLANNING SURVEY - MRpw.fO.•C M.e, S.OMR.W ,plop Oaf - n,wrt.•p wYgb Wrt.M NTafgiy QRar! frrOn.. tl b ' IrrOru. •fb 1Nl r rNr - SKOOYr q.• N..fm 1.®Y O Yw. 1. rN1 - ' ! frlr r b —2- EXISTING SITE CONDITIONS Boundary Description: The Old Liberty Shipyard Tract is located at the west end of Greenfield Street, bounded on the north by property owned by Hess Oil and Chemical Company, on the south by the property owned by the N. C. State Ports Authority, on the east by the Surry Street right-of-way, and on the west by the Cape Fear River. A location map is contained on page 2, showing the general vicinity of the site. The approximate measurements of the site are: 1. Northern boundary-- 1,600 feet 2. Southern boundary-- 1,800 feet 3. Eastern boundary--- 1,400 feet 4. Western boundary--- 900 feet A survey of the site was conducted by the City's-Engineering Division of the Public Works Department; a copy of the survey is on file in the Division. A sketch of the site is contained on page 10. Zoning: The City's Zoning Ordinance is currently being revised. The site's existing designation of M-2 is proposed to be changed to HM-- Heavy Manufacturing. It does not appear that any land use which would find the site attractive would be excluded by zoning regulations. In fact, not all of the permitted uses would necessarily find the site suitable for their activities. In the M-2 district, any building or land may be used for any purpose not in conflict with any ordinance within the City except that no building or occu- pancy permit shall be issued for any of the following uses until or unless the location of such use shall have been approved by the Board of Adjustment: acid manufacture; cement, lime, gypsum, or plaster of paris manufacture; distillation of bones; explosives (manufacture or storage);'fat rendering; garbage, offal or dead animal reduction or dumping; gas manufacture;. animals; tannery; storage or bailing of rags, paper, iron or junk; used car junk areas; and pulp and paper manufacture. It is noted here that none of the above uses were recommended as optimal uses by either the appraiser or the City's project team conducting this study. A zoning classification map of the site and adjacent tracts is provided on page 4 . As indicated by the map, this property is surrounded by properties classified M-2, i.e., heavy manufacturing. -3- 4- ri TV. L 1 1 2 wo; D -cs-c-L, M-2 M-1., R-1 cc R-2 R-2 M-2 All co 7' R-1A GREENFIELD LAkE` 01 M-2 Co R�.IA ZONING CLASSIFICATION' -CITY OF WILMINGTON 1-2 + -4- Coastal Area Management Act: This site would be subject to this act; a major permit is required for any land disturbing activity on a tract greater than one acre which abuts water affected by tidal flow. Under the 1981 CAMA Land Use Plan Update, the property has been classified as Developed, recognizing the current wood preservative operation on the site. The Coastal Area Management Act required preparation of land use plans, designated areas of environmental concern, and designed a permit system. The N. C. Department of Natural Resources and Community Development has review powers required under this act. Areas of control include: land use; sanitary waste treatment; ground and water quality; erosion and sediment control; air and industrial pollution; wetland area development; dredge and fill permits; utilities; and building code. Flood Plain Ordinance: The property is located in Zones A and V -of this ordinance and falls within the 100-year flood plain. New constructions, improvements, reconstructions, or land alterations must satisfy the ordinance's provisions. An architect or registered engineer must certify that the ordinance's requirements are met. -5- A Q II X5.0 Q U N X4 5 �LF'ie. X5 0 X30 30 TOPOGRAPHICAL MAP CITY OF WILMINGTON X173 20 X7.3 , 1 DAW - ' i x72 Tank Form -16- 158x 25.0x —R 26.9 26; x54 x 24.2 - 195R29.9 x 1 x r 2341 x 30 ^ ' `t 4.% 2. 64x 90x -l4 I Tank Form � - 22.7 X6 4 19. x 5 %41 Xz It= 32—0__ - —_ _�.__`` _ Tank - Form x 6 6 -. -7x X47 0 Tank Form •14.4 10.7 1 x,- % 4.7 4% _— :�. _;o _; lam' — y p; 70X [ll� _ _ —-•�-_—�� _'-: - 35 - �� x 56 Z x 3.0 �J r, k 3.5 _ �..� ;3g � 28 2 'I,., .I x2.5 II a !4 I U3.0 �' 11 it\ � X2.5 I ,� IIn, 11.cp / Dense Folioge X 3.5 I� X3.3 --_2b "-- f General Topography and Drainage: This 44± acre site contains 35± acres of land area and 9± acres of water area, based on a high water elevation of 3.2' MSL. A low lying tract, the land elevation of the site ranges from 1.5' MSL to 5.5' MSL, with the majority of the site at approximately 3.5' MSL. The site is generally flat except for a slight rise near the river. River high water elevations taken on December 2, 3, 4, and 9, 1981 ranged from 2.07' MSL to 3.6' MSL; see topographical map on page 6 . Approximately five acres of the site are subject to occasional tidal flooding due to the periodic malfunction of the flap -gate on a culvert through the berm along the southern edge of the property. Back-up flood protection is provided by the Greenfield Creek floodgates; however, it should be noted that flood protection devices of this type are vulnerable to clogging by floating debris which renders them ineffective. Access on this site and the N. C. State Ports Authority property must be continued by easement in order to continue to maintain the floodgates. The existing drainage system consists of two ditches. The southern ditch runs along the south side of Greenfield Street extension, then turns south across the site to the berm culvert described above and continues on to Greenfield Creek. The northern ditch runs along the north property line and connects to the Cape Fear River. Both ditches have randomly sized culverts at various lo- cations. Neither ditch is uniformly graded or regularly maintained. Overland drainage flow to the ditches is inhibited by the numerous railroad tracks on the property. There is a sump and pump system owned by the Amerada Hess Corporation located in the northern ditch. According to the Hess' manager, this pump is connected to a separator on _their property which removes petroleum products from the ditch water. The solution to the drainage problems associated with this site will depend greatly on the intended use. The existing creosoting operation does not appear to be substantially hampered by the inferior drainage characteristics; however, most other land uses will require a better drained site. -7- DATE: April 15, 1982 SITE NAME: LOCATION: North of State Ports Authority property and west of Front Street OLD LIBERTY SHIPYARD SITE SITE DATA FIRE TOTALACREAGE: 44 MUNICIPAL: X CLEARED ACREAGE: 44 VOLUNTEER: ACREAGE SUITABLE FOR CONSTRUCTION: 35 RATING: 2 OWNERSHIP (NO.& ENTITY): One -City of Wilmington REAL ESTATE TAX RATE AVERAGE ELEVATION OF USABLE AREA: CITY:_ COUNTY: 19 81 TAXES PAID : None UTILITIES SUPPLIER SIZE OF UNE/NEARESTTO SITE COMMUNICATIONS: Southern Bell Normal service available. ELECTRIC POWER:. Carolina Power & Light Co. Normal service available. NATURALGAS: N. C. Natural Gas Corp. 4" - On Site WATER MUNICIPAL- City of Wilmington 16" - adjacent GROUND: New Hanover County Health Dept - Domestic Supply N.C. Dept. of Natural Resourc s & Community Development Non -Domestic SEWERAGE: MUNICIPAL: City of Wilmington 18" - adjacent SEPTIC TANK: - - TRANSPORTATION RAILROAD: Seaboard Coast Line RR Co. On Site HIGHWAYS: U.S. 421 4 AIRPORT: New Hanover County _ 6 miles north DEEP WATER PORT: Wilmington State Port Adjacent OTHER WATERWAYS: Intracoastal Waterway 10 miles MOTOR FREIGHT: 40 carriers, most with local terminals COMMENTS Property is exempt from real estate taxes as long as it remains within. public ownership. LOCAL CONTACT Ralph Godwin (919) 763-8414 Robert G. Cobb (919) 762-4323 Wilmington Industrial Development, Inc. OR City Manager P. 0. Box 1698 = P. 0. Box 1810 Wilmington, North Carolina 284.02 Wilmington, North Carolina 28402 Taxes, Utilities, & Transportation: The table on page 8 provides basic data concerning the tract. The property holds an exempt tax status since it is owned by the City of Wilmington; no real estate taxes are paid on the property. All utilities are available to the site. Southern Bell Telephone Company and Carolina Power and Light Company supply telephone and electric services, respectively, to the current tenant (Southern Wood Piedmont Company). A four (4) inch gas line is located on the site, provided by the N. C. Natural Gas Corporation._ Service expansions are available upon request. Municipal water and sewer services are also available. Sewerage discharged by Southern Wood Piedmont Company has, from time to time, demanded extensive treatment at the City's Southside Plant. Transportation facilities surround the site. Rail spurs traverse the tract and rail service is provided by the Seaboard Coast Line Railroad Company. The New Hanover County Airport is six miles to the north. The site is less than one mile from U. S. 421; there are approximately forty (40) carriers (most with local terminals) in the Wilmington area. The deep water port of the N. C. Ports Authority is adjacent to the tract and the Intracoastal Waterway is ten miles from the site. Mel I ) C L C L 1 Y U V � h cr o B-3 B-2 D Slip e m Cooker Pressure Buildin; Vat O D a Storage 1 Tanks D-1�� 51 1 O 150 3 o SOIL d MATERIAL ENGINEERS.INC. RALEIGH. NORTH CAROLINA oem".sr. cHrco.nr Boring location Plan PI Southern Wood PiedmontS JOB H0.6 OAT[ City of Wilmington Pronerty RS-1759 12-4-81' Wilmington, N. C. icy, franhic •HUT 1 Of 2 Existing Land Use: For approximately forty (40) years, a wood preservative operation has been located on the site. The site is currently occupied by the Southern Wood Piedmont Company; a wood preservative/treating operation is conducted by this firm. Raw and dressed lumber is delivered; the raw lumber is debarked and kiln dried in on -site facilities. The lumber is treated on site, and creosote, pentachlorophenol, and chrome -cooper -arsenic are used as wood preservatives. Chemicals are stored adjacent to the respective treating facility. Additional tanks for creosote storage are located in the -southwest property corner. Southern Wood Piedmont Company makes minimal use of the existing dilapi- dated wooden pier. Products are, for the most part, transported to and from the site by truck. Numerous rail lines for operating the company's cranes and railroad cars traverse the area. These rails, as well as trucks, provide the means for handling wood products on -site. The discharge of industrial wastes by Southern Wood Piedmont Company into the City's sanitary sewer has caused the City treatment problems from time to time. The firm is one of several industries being evaluated by the City under pretreatment program development and sewer use ordinance enforcement. The N. C. Department of Natural Resources and Community Development has requested the firm to clean-up wastes which have been dumped/stored on -site. Such wastes may have contaminated the ground water. The lease between the City and Southern Wood Piedmont ended on December 31, 1981. The most recent annual rental was $15,000. At this writing, negotiations between both parties to the lease are continuing. -11- O GREE-NFIELD ST 3 '% D O° 0 ° °O EXISTING IMPROVEMENTS 1. WOODEN PIER 2. BARGE SLIPS _ 3. DIRT ROAD 4. RAILSPURS C of W/Old Liberty Shipyard Site f1 5.ASFHALT ROAD �1 6. DRAINAGE DITCH ' (buildinas excepted) 100 0 200 Inventory of Existing Improvements: Existing improvements are shown on the map on page 12. The site has barge slips and a wooden pier. However, the barge slips are silted in beyond useful- ness and the pier needs to be replaced before significant water transport activity can take place. There are several alternatives: (1) Existing barge slips could be removed and replaced with suitable slips; the barge area could be dredged. However, the water depth of the existing slips is approximately 18 inches at high water; therefore a significant amount of dredging would need to be under- taken to correct the problem. (2) Existing barge slips could be removed and filled in to add land area. However, it would be difficult for the City or any firm to secure the required N. C. State or Army Corps of Engineers permits for such work. (3) Existing pier could be removed and replaced with a T-head pier; dredging to a depth of 34 feet (current depth 20 feet) at its head would also be necessary. This alternative would be adequate to serve most ships and barges. Obtaining the required permits would still be difficult, but less so than in alternatives #1 and #2.. The alternative selected will again depend upon the particular land use. The existing wood preservative operation is not dependent on water transporta- tion. However, uses which depend on barge transport will need the existing slips removed and replaced, and extensive dredging undertaken. Land uses which depend on ship transport will need a T-head pier constructed. As noted in the appraisal report, other improvements located on the site are: a one-story frame employee building, a one-story frame office building, a one-story masonry building "kiln", a one-story masonry building "laboratory and eating area", the Creosote Plant, several one-story metal sheds, many metal storage tanks, two (2) diesel fuel pumps and several underground tanks. The improvements, upon termination of the lease, would become the property of the lessor (City). However, since the majority of the improvements are of a special purpose nature (the wood preservative operation) and since the improvements are more than 30 years old and observed in a poor to fair condition, it -appears such improvements add no value to the property. -13- sir 0 Q O � p op 00 o POSSIBLE IMPROVEMENTS Goo. O 1. NEW T—HEAD PIER A 2. REMOVE SLIPS and FILL / REMOVE SLIPS and c� DREDGE and REPLACE WITH NEW SLIPS. 3. PAVE OR RELOCATE ROAD 4. REMOVE SEVERAL SPURS C of W/Old Liberty Shipyard Site 5. REPAIR ROAD 6. FILL DITCH and REDESIGN DRAINAGE or • CLEAN THE DITCH. (buildings excepted) 1 100 6 200 r. GREENFIELD ST 7;,l cn f I � f fl 01 .I i1 f / f 1 1 � f� :i i! WORK PREPARED UNDER CONTRACT BY PRIVATE FIRMS Soil and Groundwater Analysis: Soil and Material Engineers, Inc. of Raleigh, N. C. was contracted to perform tests and evaluations of the site's soil'and groundwater conditions, and preliminary recommendations for possible foundation construction(s). The full report is on file in the City Manager's Office. Several key findings are: (1) "Fill overlying compressible organic deposits will require foundation systems and site preparation procedures that will either: 1) limit foundation loadings; 2) require improvement of surface soils; or 3) transmit foundation loads to deeper more competent strata." (2) "For construction purposes, this site is typical of other sites located along the riverfront." (3) "Very light loads with some settlement tolerance such as those associated with warehouses and steel frame buildings, can probably be supported on shallow footings with minimum site preparation and grading. Light to moderately heavy structures, particularly struc- tures sensitive to differential settlement, cannot be supported on shallow footings without special site preparation such as extensive preloading. Moderately heavy to heavy structures, such as large storage tanks and production plants, must be supported on deep founda- tions bearing below the organic zone." (4) "Suitable deep foundations could range from relatively low capacity timber piles (allowable loads of 15 to 25 tons) to moderately loaded precast concrete piles (allowable loads of 40 to 50 tons) to heavily loaded cast -in -place concrete pipe piles or H-piles (allowable loads of 40 to 60 tons)." . (5) . . the groundwater beneath the site is contaminated, and some contaminant concentrations are above maximum concentrations recommend- ed for chlorinated drinking water." (6) "The contaminants anthracene, chromium, flourene and pentachlorophenol most probably originated from Southern Wood Piedmont Company's wood treating processes." Fine widely spaced borings were drilled across the site to a maximum depth of 50 feet below the ground surface, corresponding with the upper elevation of the Castle Hayne formation at this site. By mutual agreement between City, Southern. Wood Piedmont Company, and Soil and Material Engineers, Inc. represen- tatives, specific boring locations were established in the field. The borings were made in order to secure soil samples; wells adjacent to the borings were installed in order -to secure groundwater samples. Standard engineering and EPA test procedures were used to classify soils and analyze the groundwater. -15- Soil and Material Engineers, Inc. recommended further tests be undertaken to monitor contaminants and to verify contamination sources. Also, the engi- neering firm recommended additional detailed subsurface investigations be conducted as specific development plans are formulated, since the subsurface conditi-ons across the site do wary. Swmdrj gpprais l: Joseph M. Robb, M.A.I., performed an appraisal of the subject property; a copy of the appraisal is on file in the City Manager's Office. The property was inspected during March 6, May 25, and June 25 of 1981. The land value was estimated by the land value by comparison technique; the estimate of market rental was determined by an analysis of rents of comparable facilities and a fair rental return on the.estimated market value. His key findings were: (1) Potential physical uses for which the site could be adapted, in the event of cessation -of the present use, are, in order of priority: petro-chemical; grain and related products; wood chips; coal; and bulk goods handling.facilities. (2) The estimated value of the land is $740,000. (3) With an interest (risk) rate of eighteen (18) percent, the annual initial market rental of the property is estimated as: $740,000 X .18 = $133,000. It is noted that the appraiser did not believe the current tenant (wood preservative operation) was the most appropriate occupant for the site. His opinion was based, in large part, on the fact that Southern Wood Piedmont Company does not use the river for transportation to a great extent. Thus, Southern Wood Piedmont or any other similar activity does not need a riverfront site to carry on its activities. Conversely, the land uses which Mr. Robb ascertained as optimal would find the prospects of river and rail transport both advantageous and necessary. Water transport or water dependency was also viewed as a key factor in the pro- ject team's evaluation of land uses. It is also noted that the land (market) value and the interest (risk) rate are estimates of what the City could secure. Such estimates provide the City with strong negotiating points with which to discuss lease terms with Southern Wood Piedmont Company or other potential tenants. -16- DEVELOPMENT ALTERNATIVES Analysis by City Staff: Since the site is publicly owned, the evaluation of uses was somewhat broader than a standard feasibility study. Land uses which received high rankings had the following general characteristics: (1) They were environmentally "clean", i.e., they would not generate hazardous or toxic wastes, nor create a health hazard. (2) They would benefit from the site's water access and find the site more suitable and preferable for their operations than a "land- locked" site. (3) They would make minimal use of rail transport. Although rail spurs are on'the site, heavy rail use would create traffic problems throughout the City, particularly in residential areas. (4) They would be able to pay either a fair market rental or purchase price for the tract to the City. (5) They could legally locate on.the site. (6) They would find development of the site as economically attractive and feasible. (7) They could physically adapt the site to their own use. The methodology which was used to evaluate optimal land uses for the site is contained in the appendix, beginning on page 27. Highly ranked uses, in order, were: (1) Water Transportation (2) Warehouse-- General (3) Petroleum Refining (Tank Farms) _ (4) Saw and Planing Mills (5) Lumber and Wood, except Furniture (6) Wholesale Trade-- Durable Goods In addition to the above uses, a seventh was added-- Marine Construction/ Marine Repair. If off -shore oil drilling takes place or demand for ship repairing increases, then this land use would be appropriate. The construction of facilities which could be transported from this tract to off -shore sites would be another optimal use of the property. -17- GREENFIELD S' 100 200 It should be recognized that the "benefits vs. costs" of vari)us alterna- tives were viewed broadly as "strengths vs. weaknesses". It was not feasible to develop detailed costs and benefits, given the scope of the project. The strengths and weaknesses of the highly -ranked uses are listed below. Similar uses had similar strengths and weaknesses and were analyzed in combina- tion (e.g., "Warehouse-- General" and "Wholesale Trade-- Durable Goods"). Sketches which contain alternative development schemes are contained on page 18 and page 20. Water Transportation (including tugboat, towing, and barge operations) Strengths Weaknesses 1. Would be a clean use 1. Would compete with existing water 2. May be able to use site in conjunction with another use which is not water dependent 3. Would mesh well with port activities 4. Obvious benefit from water access; water dependent land use 5. Would make minimal use of rail transport 6. After minimal cleanup, site could be adapted for this use transport activities in area 2. Would create few jobs 3. May have difficulty in paying fair market rental or purchase price 4. Would require improvements to pier and/or barge slips 5. May not need entire site for its operation Warehouse- General and Wholesale Trade- Durable Goods Strengths 1. Potentially clean use 2. Would mesh well with port activities 3. Free Trade Zone designation would enhance this use Weaknesses 1. Improvements to drainage and streets would be necessary 2. May generate either heavy truck or rail traffic 3. May require improvements to pier if ship transport is heavy 4. Site could be adapted for this use -19- W J O m 2 J Q POSSIBLE USE TANK' FARM (PETROLEUM STORAGE) C of W/Old Liberty 'Shipyard Site 10 bO b ' 200 , I� H cn r D a: GREENFIELD ST. Tank Farms (Petroleum Refining) Strengths 1. Adjacent land use - tank farm; would mesh nicely with this use 2. Personal property tax basewould increase substantially 3. Potentially clean use if preven- tive measures are enforced 4. Site could be adapted for this use 5. Would probably have minimal use of rail transport 1� 1. Improvements to drainage and streets and pier would be necessary 2. World-wide oil surplus may limit need to expand storage facilities at this time 3. Major site preparation would be necessary Lumber and Wood, Except Furniture and Saw and Planning Mills Strengths 1. Relatively clean industry 2. May create high number of jobs 3. After clean-up, site could be physically adapted to site for this use Marine Construction/Marine Repair Strengths 1. Clean industry 2. Would maximize use of river access 3. Would allow for expansion of other water -oriented industries, e.g., off -shore oil drilling 4. Would make minimal use of rail transport -21- Weaknesses 1. Would generate heavy rail or truck traffic 2. May find other sites, without water access, more economically feasible 3. May need extensive site preparation Weaknesses 1. Weak market 2. Dependent on success/failure of other industries 3. Chicken and egg phenomenon -- problem of timing in connection with other uses 4. May need extensive site preparation Options Several development options were considered by the project team, based on the collected data and evaluation of land uses. These options are summarized below. The project team's recommendations concerning the near and long-term use of the property immediately follow. Lease vs. Sell: Staff considered whether the City should continue to lease the site or whether the tract should be sold. If the property were sold to a private firm for $750,000, then the annual taxes returned to the City would be $7,125. If the proceeds from the sale were invested at a fifteen (15) percent rate of return, then the annual sum which would accrue would be $119,625. If the City continued to lease the property and secured a lease payment which approximated Treasury Bill rates, the only loss to the City (in revenues) would be taxes ($7,000 to $8,000 per year). However, the City would still be able to realize appreciation on the property;.have lessor control over improve- ments to the site; and retain ownership in any capital improvements to the tract by lessees. Subdivision: With the exception of Water Transportation, each optimal use would need the entire tract to carry on its operation. Subdividing the property does not appear to be a viable alternative if an industrial use is considered as the optimum for the site. Open Space Development: Aside from the loss of revenue, the site has limitations as a park area. Grading and fill construction, removal of the existing barge slips, as well as rail spurs, would all need to be undertaken prior to landscaping and park construction. Financing a new park would be, in a word, problematical. -23- Recommendations: The recommendations of the Project Team are as follows: (1) If the present occupant and the City cannot conclude a mutually satisfactory lease contract, or if the present occupant at some point in time finds the site undesirable, then the property should be marketed toward securing one or a combination of the following uses: water transportation; warehouse- general; petroleum refining; saw and plan.ing mills; lumber and wood except furniture; wholesale trade- durable goods; and marine construction and repair. (2) The annual rental of the property should be increased from $15,000 to an annual sum in the range of $74,000 to $133,000. This range is based on rates of return of 10 to 18 percent respectively, on the property's estimated value ($740,000). (3) Southern Wood Piedmont Company should clean-up any water contami- nation which has resulted from its operations. (4) Capital improvements, such as dredge and fill, construction of a pier and barge slips, and site preparation, should be undertaken as necessary by the existing or future lessees to the property. (5) Some form of riverfront access or waterfront leasehold easement should be included in future lease contracts with Southern Wood Piedmont if this firm continues as the City's tenant. In this way, a water transport user (e.g., tugs) could use the river and co- exist with the wood treating firm. (6) In recognition that the potential market for the site is a multi- state region, appropriate marketing methods would include the following: 1) This study and other sources should be gathered into an attractive concise property information package. 2) Use should be made of both the Committee of 100, the local industrial recruitment organization, the North Carolina Department of Commerce and perhaps the North Carolina State Ports Authority. Each of these organizations has extensive useful contacts. 3) Consideration should be given to obtaining the services of a major 'regional industrial and commercial broker such as Binswanger or Coldwell Banker. 4) Finally, advertisements in selected trade publications and general business publications (such as the regional edition of the Wall Street Journal) should be considered. -24- EVALUATION OF LAND USES Analysis Methods: The Project Team used three steps in evaluating the optimum land use(s) for the site: (1) A general analysis; (2) An analysis of possible uses; and (3) An analysis of possible and desirable uses. Step One: General Analysis: Staff weighed and discussed all possible land uses and made the following general conclusions: 1. Residential development would be highly improbable given the incompatible surrounding land uses of bulk (petroleum) storage and N. C. State Ports Authority activities. 2. Commercial, service business, and office development would be unlikely because of the limited access and visibility of the site. 3. The site is appropriate for use by City operations. However, based on available information, no particular need for its use was identified for public works or public safety purposes. A readily identifiable public use would be open space or recre- ation development. The City's major recreation facility, Greenfield Park, is located near the site; refer to map on page 2 . The site could serve as a connection between the lake and the Cape Fear River, as well as provide a boat launch facility on the Cape Fear within the City limits. 4. Industr.ial or warehousing development was determined to be most appropriate, given the surrounding land uses and the site's rail and river access. Step Two: Analysis of Possible Uses: The list of fifty-two (52) land uses which were analyzed under this step are contained on page 29. This list includes uses which were con- tained in five (5) major categories: I. Manufacturing-- 33 uses 2. Services-- 5 uses 3. Transportation, Communication, and Utilities-- 7 uses 4. Construction-- 3 uses 5. Wholesale Trade-- 3 uses 6. Retail Trade-- 1 use -27- Several uses which were identified as being marginally possible under the "General Analysis" were included under this analysis in order to pro- vide the most comprehensive evaluation. The current land use (creosote treatment), as well as municipal park development, were also included in the analysis. The list of factors which were used to evaluate each land use are contained on page 32. Basically, each land use was evaluated with respect to its desirability and market demand for the site. Desirability included such factors as environmental impact, jobs created, multiplier effects, financial return, etc. Market demand included such factors as need for water transport, need for rail transport, land use interrelationship, etc. Project Team members had different individual rankings of the land use which would be "most desirable" and "most likely to locate" on the site. The top seven (7) land uses ranked by each member demonstrated di- verse opinions as to the optimum use(s) for the site; twenty-seven (27) uses were ranked first -to -seventh by the project team. Highly ranked uses, in order, were: - 1. Wholesale Trade-- Non -Durable Goods 2. Warehouse-- General 3. Water Transportation 4. Lumber and Wood, except Furniture 5. Heavy Construction, Non -building Construction 6. Measuring, Analyzing, and Control Instruments 7. Petroleum Refining (Tank Farms) Step Three: Analysis of Possible and Desirable Uses: . Under this step, the project team evaluated the twenty-seven (27) uses which were highly ranked under the previous analysis. The factors upon which each land use was eval.uated are listed on page 34. The factors fo- cused on the suitability of the site for each particular land use. (The assumption was that land uses which would have a negative environmental impact were eliminated from consideration under the prior analysis). Project team members' opinions still showed a diversity, but less so than was elicited under the prior analysis. Highly ranked uses, in order, were: 1. Water Transportation 2. Warehouse- General 3. Petroleum Refining (Tank Farms) 4. Saw and Planning Mills 5. Lumber and Wood, except Furniture 6. Wholesale Trade-- Durable Goods N STEP TWO: 52 LAND USES Construction General Contractors - Building Construction Heavy Construction-- Non -Building Construction Special Trade Contractors-- Electrical, Plumbing, etc. Manufacturing Apparel -and Other Finished Products Bakery Products Beverages Candy and Other Confectionery Products Chemicals and Allied Products except Acids, Gases and Glues Converted Paper and Paperboard Products Creosote Treatment Electrical and Electronic Machinery, Equipment and Supplies Fabricated Metal Products except Machinery and Transportation Products Fats and Oils Food and Kindred Products, except Stockyards or Slaughter of Animals Furniture and Fixtures Leather and Leather Products, excluding Tanning Lumber and Wood Products, except Furniture Machinery, except Electrical Measuring, Analyzing and Controlling Instruments Photographic, Medical and Optical Goods; Watches and Clocks Meat Products, including Poultry and Seafood Processing and Slaughtering Metal Forgings and Stampings Miscellaneous Manufacturing Industries Office, Computing and Accounting Machines - 29- Ordinance and Accessories Paper and Allied Products, except Pulp and Paper Manufacture Paperboard Containers and Boxes Petroleum Refining and Related Industries Pottery and Related Products-- Primary Metal Products Printing, Publishing and Allied Industries Refrigeration and Service Industry Machinery Saw Mills and Planning Mills Stone; Clay, Glass and Concrete Products, except Cement, Lime, Gypsum and Plaster of Paris Textile Mill Products Tires and Inner Tubes Tobacco Manufacture Transportation Equipment Retail Trade Motor Vehicle Dealers-- New and Used Services Indoor and Outdoor Recreational Establishments-- Commercially Operated Industrial Launderers Municipal Parks and Recreation Areas. Repair Shops and Related Services-- Not.Elsewhere Classified Welding Repair Transportation, Communication, Utilities Coal Terminal Electric Services-- including substations Junkyard-- Scrap Processing -30- Mini -Warehousing Railroad Transportation, including Passenger and Freight Stations Sanitary Services-- Garbage and Waste Incineration, Sanitary Landfill Water Transportation Wholesale Trade Wholesale Trade-- Durable Goods Wholesale Trade-- Non -Durable Goods Warehousing-- General -31- STEP TWO: EVALUATION FACTORS 1. Positive Environmental Impact 2. Positive Need: River Transport 3. Positive Need: River Access 4. Positive Number Jobs Created 5. Positive Multiplier Effects 6.. Positive Financial Return to City 7. Positive Land Use Inter -Relationship 8. Positive Market for Use Intended 9. Positive Public Relations Impact 10. Low Cost Site Improvements by City 11. Low Cost Site Improvements by Private 12. Low Rail Necessity 13. Low Necessity to Expand Water System 14. Low Necessity to Expand Sewer System 15. Low Necessity to Expand Other Utilities 0 -32- STEP THREE: 27 LAND USES 1. Electronic and Electrical Equipment, Machinery & Supplies 2. Warehouse-- General 3. Wholesale Trade-- Non -Durable Goods 4. Measuring, Analyzing and Control Instruments 5. Municipal Parks 6. Wholesale Trade-- Durable Goods 7. Transportation Equipment 8. Office, Computing, and Accounting Machines 9. Heavy Construction 10. Water Transportation 11. Furniture and Fixtures 12. Ordinance and Accessories 13. Lumber and Wood, except Furniture 14. Petroleum Refining 15. Machinery, except Electrical 16. Tires and Inner Tubes 17. Tobacco Manufacturing 18. Metal Forgings and Stampings 19. Heavy Construction-- Non -Building Construction 20. Indoor/Outdoor Recreation Establishments 21. General Construction-- Building Construction 22. Special Trade Contractors-- Electrical, Plumbing, etc. 23. Mini -Warehousing 24. Repair Shops 25. Saw and Planning Mills 26. Welding Repair 27. Coal Terminal -33- STEP THREE: EVALUATION FACTORS 1. User is water dependent? (River Transport or Process Water) 2. User will have good impacts on adjacent properties? 3. Adjacent users will have good impacts on user? 4. Good availability of support services or raw materials? 5. User could pay fair market lease on property? 6. Adequate acreage for user? 7. Low chance user could locate elsewhere? 8. Low rail necessity? 9. Low need to expand water, sewer, or other utilities? -34-