NEW HANOVER COUNTY — County commissioners approved to transfer to Carolina Beach its joint interest in a parcel involved in an ongoing lawsuit related to land for the recently removed Ferris wheel.
READ MORE: CB seeks agreement with amusement park landowner to bring back Ferris wheel
The approval is the latest development in a multi-layered dispute between Carolina Beach Land Holdings LLC — which owns the majority of land used for the town’s seasonal amusement park — and the Town of Carolina Beach.
In November 2023, Carolina Beach Land Holdings LLC filed a lawsuit against Carolina Beach. The suit challenges the town’s claim to an easement on a portion of the company’s property used for a sidewalk next to the former Ferris wheel.
The town recently discovered an adjacent parcel crossing the sidewalk is partially owned by the county. Town manager Bruce Oakley told PCD the jointly owned property “either abuts or encroaches” the property owned by Carolina Beach Land Holdings specified in the suit.
“The Town is currently addressing threatened and actual litigation relating to its Boardwalk,” the agenda for the New Hanover County commissioner’s Feb. 19 meeting notes. “County conveyance would expedite that process and avoid the County becoming a named party in the litigation.”
Carolina Beach did not previously realize the county had a 42.7% share of the 0.02-acre Cape Fear Boulevard parcel before Carolina Beach Land Holdings LLC filed suit in the fall.
The “conveyance of joint interest” refers to the transfer or sale of a joint owner’s partial share of a property. Commissioners’ approval is pursuant to G.S. 160A, Article 12, which allows a city to acquire, sell, change uses, or dispose of property “without regard to the method or purpose of its acquisition or to its intended or actual governmental or other prior use.”
The NHC board signed off on the “quitclaim deed” — a formal renunciation or transfer of land — “without cash consideration” at Monday’s commissioners’ meeting. County attorney Kemp Burpeau presented the request and County Manager Chris Coudriet recommended approval.
PCD reached out to Burpeau to ask how the jointly owned property was involved in the suit, if the county’s renunciation of ownership would be at no charge, and what benefit the county would gain from the deal; the county attorney did not respond by press, but spokesperson Alex Riley confirmed commissioners unanimously approved relinquishing the county’s partial ownership of the property at no cost.
The issue is further complicated by ongoing negotiations to bring back the Carolina Beach Ferris wheel to the Boardwalk. While Carolina Beach officials maintain the lawsuit and Ferris wheel negotiations are unrelated, they involve the same parties engaging in land use disputes on a tract located on Carolina Beach Avenue South and Cape Fear Boulevard.
Although Carolina Beach Land Holdings owns most of the land used for the town’s seasonal amusement park — which it leases to amusement companies such as Ferris wheel owner Hildebrand Amusements — it requires a small amount of town-owned property for its operations.
Roughly two years ago, the company began leasing a 1,700-square-foot parcel of town property to put the support leg of the Ferris wheel. The company’s owners Ken Cofer and Matt Murphy sought a long-term arrangement to make the Ferris wheel a permanent fixture of the Boardwalk. They expressed interest in purchasing the property or obtaining a 10-year lease.
Town council preferred a deal that would grant them flexibility for future uses. At council’s Jan. 10 meeting, Barbee argued the $400-a-month lease was under market value and should be renegotiated before continuance.
He described the deal as a short-term arrangement, carried out as a favor in return for the company previously leasing the town its property for the same amount several years ago. The mayor also argued leasing public property wasn’t necessary to provide sufficient space for the Ferris wheel; he told PCD last month the support leg needed at most 4 feet of town property.
An agreement was not reached before the company removed the Ferris wheel ahead of its lease expiration on Jan. 1. Ten days later at the council meeting, members unanimously agreed to pursue an encroachment agreement with Cofer and Murphy — to allow the company to use some of the town’s land without a lease.
Oakley has since met with Murphy to discuss the deal. He told PCD the meeting was “productive,” although the parties have not yet reached an agreement.
Last month, Barbee said he wasn’t “100% briefed” on Carolina Land Beach Holdings’ lawsuit but believed it was not directly related to Ferris wheel negotiations.
“I assume that the litigation is mentioned as it is adjacent property,” he told PCD on Friday, in reference to the quitclaim deed request.
In 1973, the town and county became co-owners of the 0.02 acre parcel — titled “9 Boardwalk” in the request with tax parcel ID number R09006-021-001-000 — through a foreclosure action, due to delinquent town and county taxes. It’s located next to the lot 10 property specified in Cape Fear Holdings lawsuit, as used for the easement.
“Unknown to most of us, research showed that at some point in the distant past the county had some ownership in that property,” Barbee told PCD. “This action just cleans up the paperwork from many years ago.”
Murphy’s March 2022 permit application for the Ferris wheel lease included a shared use of sidewalk agreement, with a site plan including the lot 10 walkway pictured in the suit. It is unclear when Carolina Beach Land Holdings began to take issue with the sidewalk agreement; Murphy emphasized to PCD the litigation was not related to disagreements over the Ferris wheel lease.
The New Hanover Civil Courts division told PCD there are currently no scheduled hearings for Carolina Beach Land Holdings’ lawsuit; a court worker said it would likely be several months before a trial date.
Tips or comments? Email journalist Peter Castagno at peter@localdailymedia.com.
Want to read more from PCD? Subscribe now and then sign up for our morning newsletter, Wilmington Wire, and get the headlines delivered to your inbox every morning.
