** First things first… we did a poor job explaining this to the public at last night’s meeting. (11/4) I take responsibility for that, because I like to think of myself as a decent communicator. I was not on my game. My apologies to anyone at the meeting or watching from home. **
We are under contract to buy a parking lot at 1810 Canal Drive. Way up yonder near the entrance to Freeman Park. The price… a cool $1 million. But only $400,000 to us, because we got a Coastal Area Management (CAMA) grant for $600,000. The grant money is to ensure public access to beaches throughout the state. The parking lot currently has 24 spaces available and it’s about .25 acre in size.
OK, But Why?
The financials make sense. The lot brings in roughly $80,000 per year. That’s a 20% return on investment, which is good… really good. Or you could look at it this way… it will be paid off in 5 years. Any businessman worth his salt would jump all over that deal. It’s a move that helps the town’s long-term finances.
Yes, we forfeit property taxes when we purchase the lot. It’s valued at $467,300 which brings in about $1,000 in property tax each year. If it was developed it could result in upwards of $3-4 million in value (I’m guessing) which would bring in $6,500 – $8,500 in property taxes. I’ll still take the $80,000 thank you very much!
And that’s just talking money. By buying this we obtain a permanent place for our citizens to park (free with your pass) and access Freeman Park and/or the Carolina Beach Pier. That’s a win for you.
Take me for example. I’m too poor to own a Jeep or a boat. (2 kids in college!) The only way for me to see the inlet is to walk, and I do it once or twice a year. I drive up, park in that lot and go. I’m glad to know that this isn’t going anywhere.
It’s also a good strategic spot to allow for handicap access to the beach. Maybe even a viewing platform or something of that nature.
Why Didn’t Anyone Know About It?
Real estate transactions are discussed in closed sessions (no public allowed, no minutes provided) because of the sensitive nature of negotiations. If word gets out, these things can go up in smoke. I didn’t even tell Mrs. Hoffer about it.
Here’s a scenario. We’re in negotiations (and there were negotiations), we get all excited about it and someone makes social media post. Then a few Facebook friends get upset (believe it or not, that could happen) and start raising hell about it. Then the sellers get spooked, because they think we might change our minds. Then the sellers back out. Or a private investor sees what’s going on and makes a big offer. And poof! No deal and no more parking at the entrance to Freeman Park.
And that my friends, is why not everything can be a public referendum.
Our job is to make smart decisions for the town, and talking about the deal can only serve to f&*% things up. That’s why we have elections… so you can elect people you trust, who have your interests at heart.
I try my best to live up to that trust.