Local Government Commission approves financing plan for Wilmington to purchase Thermo Fisher building

Local Government Commission approves financing plan for Wilmington to purchase Thermo Fisher building
Published: Jun. 6, 2023 at 5:55 PM EDT

RALEIGH, N.C. (WECT) - The North Carolina Local Government Commission voted 7-1 Tuesday to approve the City of Wilmington’s plan to spend nearly $70 million to purchase the tallest building downtown. The purchase would include the 12-story office building at 929 N Front St., over 1,500 parking spaces and more than three acres of unused land north of the building.

The commission gave the green light for the city to issue $70 million in limited obligation bonds for the purchase. The only member of the commission to vote against approval was State Treasurer Dale Folwell. He expressed concerns about the price tag and whether the city is the best buyer.

“If a large corporation would want to relocate its headquarters to Wilmington, I would say only piece of Class-A prime real estate for them to possibly occupy would be the one that you’re buying,” Folwell said.

Councilman Luke Waddell says he is frustrated with Folwell’s dissenting vote and believes the deal is a no-brainer.

“It’s viable,” said Waddell. “It’s the least expensive option for the city, the needs of the city, and it has generational opportunity for the city and downtown proper and the future growth of the city long after any of us are still in office.”

Waddell says a space-needs study showed the city needed to build a new space to consolidate operations, adding that the price for a new building was estimated to be around $100 million.

During Tuesday’s meeting, Folwell questioned city officials about the demand for the property from other potential buyers.

“Probably the only reason that this building is even on the market is because corporate America is not showing up to physically work in buildings,” Folwell said. “So, in some respects, Wilmington may be the only person who would ever, ever, ever have an interest in this building.”

Waddell says the pending purchase checks several boxes and looks forward to what it could provide for the city.

“It gives us the opportunity to go ahead and move everybody under one roof in the space that we need for three-quarters of the price tag that we were looking at originally. It gives us 1,500 parking spaces that can be a revenue generator, and we’ll take care of our parking needs on the north end of Wilmington for decades to come,” said Waddell.

The city hopes to close the deal by mid-July and move into the furnished space afterwards. The city also plans to sell some of its current buildings and part of the open land on the Thermo Fisher campus.

The Local Government Commission also approved $25 million in limited obligation bonds for New Hanover County. The 6-2 vote approves vehicles, equipment and various improvements to buildings and parks. It also reimburses the county for the cash payment of the Bank of America building to expand Cape Fear Community College’s health programs.