Tuesday, November 5, 2024

County rescinds Cheetah eminent domain authorization, wants to negotiate buying the property

Commissioners voted to rescind the controversial eminent domain authorization to purchase Cheetah strip club. (Courtesy Shea Carver)

NEW HANOVER COUNTY — After receiving public backlash regarding the county’s authorization of eminent domain to purchase Cheetah strip club last month, commissioners unanimously voted Monday to rescind the action.

READ MORE: County: Cheetah’s free parking offer is not a ‘viable permanent solution’

ALSO: NHC commissioner pushes for negotiations with strip club over eminent domain

“Ultimately, over the last month we have explored it and we have engaged in some productive dialogue with the property owners and the business owner,” Commissioner Dane Scalise said at the meeting. “And I think that it is appropriate at this time to rescind our resolution to explore eminent domain, and to continue those efforts to consider the voluntary purchase of the property in question.”

Scalise raised the motion at the end of the meeting, seconded by vice-chair LeAnn Pierce who also has been vocally against the use of eminent domain. 

The commissioners voted unanimously last month to authorize the potential eminent domain purchase of 134 College Road for $2.3 million due to its parking needs. 

Commissioner Rob Zapple asked Scalise to clarify if he intended to continue negotiations on the 134 College Road property by voluntary acquisition and said he supported the motion if affirmative. 

“I think that’s where we’ve been headed all along,” Zapple said. “And certainly in whatever discussions we’ve had, of making a fair — better than fair — offer to the establishment for the property.”

Scalise confirmed the county would continue to negotiate with the owners to purchase the property. 

He has been clear throughout the process his preference has always been for negotiation and thought eminent domain was the only option after the county’s real estate broker said Cheetah property owner Jerry Reid wasn’t accepting of deliberations on the property. Reid said he was unaware of the county’s interest in purchasing the space until the morning after the original vote but told PCD last week his goal is to keep it.

Reid called Cheetah’s location premier, difficult to emulate in other parts of the city and additionally has argued the county’s $2.3 million offer is undervalued. Reid said he is considering enlisting a third-party appraiser but is adamant he intends to stay at the College Road location.

“You know, we’re going on 30 years there and that’s our ideal solution,” Cheetah’s legal counsel Mike Barber added

Barber applauded commissioners’ reverse of course Monday. He told Port City Daily “everything is on the table” for negotiations; however, like Reid he reiterated their ideal solution is to remain in their current location.

“We are grateful for the leadership shown by Commissioners Scalise, Pierce and others,” Barber wrote in a statement. “Most importantly, 60 hardworking New Hanover County residents can rest a little easier that their jobs are not in immediate jeopardy. We look forward to meaningful discussions with the County leadership in pursuit of a solution of long term mutual benefit and satisfactory to all involved.”

Barber argued the purchase of the property — which the county valued at $2.3 million in the original authorization — would pose an unnecessary burden on county taxpayers.

“We also — just like a couple of the commissioners that showed great leadership — are committed to having the least impact on the citizens and taxpayers, financially and otherwise,” he told PCD.

Barber told PCD the county still has not provided a study or precise calculations on the government center’s parking needs. According to most recent site plan from the county and Cape Fear FD Stonewater — the developer behind building the new government center, which is working with the county in a public-private partnership — there is a minimum of one parking spot per 300 square feet required; the 136,595-square-foot property needs at least 456 spaces. 

Barber argued the county should buy back some of the 7.5 acres the county sold to Cape Fear FD Stonewater for a mixed-use development next to the new government center before purchasing Cheetah. CF Stonewater is constructing the mixed-use site in the old government center location and will need a minimum of 724 spots by completion of phase three of its construction. 

“There are some little pieces of that that could be tightened up a bit and before you know it you’ve got 100 spaces,” Barber said.

The county sold Cape Fear FD Stonewater 7.5 acres in parcel #2 as part of the government center development agreement. (Courtesy New Hanover County)

Brian Eckel, the co-founder of Cape Fear Commercial — which partnered with Virginia-based real estate firm FD Stonewater to build the new government center — previously said at a June  2020 commissioner meeting the private development would be able to help absorb overflow parking from the public building. 

The county’s 2021 development agreement with Cape Fear FD Stonewater stated “adequate, nonexclusive parking” would be provided “either on or adjacent to the property.” Parking was listed as one of the “government center improvements” required for the developer’s purchase of the 7.5 acres at $8.8 per square foot.

“Closing on said purchase and sale shall be contingent upon substantial completion of the Government Center Improvements,” the agreement stated. The agreement also declared “the developer shall coordinate and oversee completion of design details” related to government center improvements. 

The agreement noted project plans for government center improvements were provided by companies including Wilmington-based architecture firm L3SP, SEPI engineering and construction, Thomas Construction, and Citadel Contractors. Of the project’s anticipated $45.9 million budget — it later increased to $52 million — $3.58 million was allocated to design and engineering, while $2.5 million was estimated for project management fees.

PCD reached out to Eckel on Tuesday to ask if Cape Fear FD Stonewater could still potentially provide the county parking in its mixed-use development; he said he would provide a response later in the day.

Barber noted the county has a shared parking agreement with at least one business owner in the vicinity, Jim and Margaret Grago of Ten Pin Alley and Breaktime Billiards. According to Stonewater’s site plan, there are a combined 219 spots at Cheetah and Ten Pin Alley as “existing parking to remain.” Barber pointed out the agreement allows the business and county to park in each other’s spaces, which might contribute to parking issues for the government center.

The county already owns 30 of Cheetah’s 74 parking spots. The club offered its remaining 44 spots for free-use during the day; acquiring the building would provide an unclear amount of additional spots established by the building’s demolition. 

The county told media the day after the original authorization it would not be able to answer questions regarding the situation and has continued to remain mum. It has not answered how much it would gain from purchasing and demolishing Cheetah, nor whether the county contracted any third -party for a parking study to determine how much parking is needed and the most viable potential options to provide it.


Tips or comments? Email journalist Peter Castagno at peter@localdailymedia.com.

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