Wilmington City Council Regular Meeting - January 21, 2025

The Wilmington City Council met on Tuesday, January 21, 2025, at 6:30 p.m. (transcript indicates morning session) at City Hall, 102 North 3rd Street. The meeting featured three presentations, a consent agenda, public comments, two continued public hearings, seven ordinances, seven resolutions, and appointments. Key actions included approval of a pilot social district in the Brooklyn Arts District (5-2), acceptance of a $25,000 Duke Energy Foundation grant for flood gauges, a $103,494 supplemental appropriation for Greenfield Park trail repairs, and a $660,000 funding agreement with the Wilmington Housing Authority.

Presentations

• 2024 Year-End Crime Statistics – Chief Donny Williams reported preliminary data comparing calendar year 2023 to 2024. Overall crime increased by 101 incidents (2%), with violent crime up 13 incidents (2%) and property crime up 101 incidents (2%). Homicides decreased by 2 incidents (from 11 to 9, with 2 classified as justifiable or traffic fatalities). Gun crimes decreased 37% since 2019 and 7% from 2023 to 2024. Guns recovered rose from 293 in 2019 to 567 in 2024. Clearance rates: homicides 77% (national average 58%), robberies 32% (national 28%), aggravated assaults 41% (national 46%). Larcenies increased 5% due to unlocked vehicles (90% of cases) and retail theft. Public housing violent crime increased by 5 incidents (26%) but homicides have been reduced; last homicide in Creekwood was 2020. Sixteen traffic fatalities occurred. Councilmember Spears asked if Wilmington is safer; Chief Williams responded yes, citing a drop from over 20 homicides in his first year to eight in 2024. Barry Coburn, Senior Data Analyst, noted that total increase from 2023 was 2% and that statewide comparisons will not be available until October 2025.
• Annual Comprehensive Financial Report – Robbie Bittner of PB Mares presented. The City received an unmodified (clean) audit opinion for the fiscal year ending June 30, 2024. No instances of non-compliance, significant deficiencies, or material weaknesses in internal control were identified. Implementation of GASB Statement 100 resulted in a restatement of fund balance due to a change in reporting entity. The Local Government Commission has changed the reporting deadline to December 31, 2025 (no automatic extension). Federal Uniform Guidance audit threshold increased from $750,000 to $1 million.
• Affordable Housing Fund Balance Report – Rachel Schuler, Director of Housing & Neighborhood Services, presented. A fund balance cap policy adopted December 3, 2024, sets the cap at 2.5 times the value of one cent on the property tax rate (approx. $5.7 million for FY25). Current obligated funds balance is approximately $5.4 million. In FY25, investments of about $11 million are projected to create/preserve 438 units. For every $1 invested, $9 in private or other funding is leveraged. Since FY22, 622 units have been funded.

Consent Calendar

• Approved minutes of January 6, 2025 Agenda Briefing and January 7, 2025 Regular Meeting.
• Resolution accepting the Annual Comprehensive Financial Report for fiscal year ending June 30, 2024.
• Resolution awarding a construction contract to Barrs Recreation, LLC for playground replacement at Cameron and Kennedy Parks in the amount of $337,739 using Sourcewell Cooperative Purchasing Contract. (Kennedy Park improvements: $232,067; Cameron Park improvements: $105,672)
• Resolution authorizing a one-year extension contract with Johnson Controls, Inc. for video storage software, not to exceed $36,000.
• Resolution supporting the Wilmington Urban Area Metropolitan Planning Organization’s Resilience Improvement Planning Grant application through the USDOT’s PROTECT program.

Public Comments & Testimony

• Towing Fee Scheduling – Thomas Toby, owner of Thomas Towing, and Mark Gabriel spoke regarding updating the City’s wrecker rotation fee schedule. They requested adoption of rules and regulations similar to the North Carolina State Highway Patrol, including updated pricing, equipment lists, background checks, and biannual inspections. Toby stated that costs have risen (insurance up 104% to $113,000/year, truck costs up 40%) but fees have not kept pace. Only about 50% of towed vehicles are recovered from insurance; the rest require a four-month process to scrap. Councilmember Joyner proposed that the City Attorney and Wilmington Police Department attorney review the proposal and make a recommendation aligned with Highway Patrol practices. Councilmember Waddell suggested bringing a proposal to the budget workshop in February.
• Pilot Social District – Brooklyn Arts District – Multiple speakers addressed Council:
  • Diana Hill (2210 Klein Road) spoke in opposition, arguing the ordinance would increase underage drinking, citing New Hanover County’s ranking (3rd in alcohol consumption among 100 counties despite being 11th in population). She raised concerns about oversight, littering, parking, and policing.
  • Alex White (owner, Pizzeria Don Luca) spoke in favor, stating the pilot is about economic development, not just open containers. He noted that businesses are struggling and that the program would bring tax revenue to Wilmington rather than surrounding areas.
  • Alicia Mitchell (owner, Kitchen Sink) spoke in favor, stating it would have a huge economic impact.
  • Tara English (owner, Brooklyn Cafe) spoke in favor, noting that 2024 was a difficult year for local businesses and that the pilot is a well-thought-out plan with provisions for monitoring and recycling.
  • Robin Scott (residential property owner and employee of Brooklyn Arts District) spoke in favor, stating residential and business communities can coexist.
  • Brian Wesley (owner, Commodore Public House and Kitchen) spoke in favor, emphasizing that the social district is about bringing people to the neighborhood for economic development.
  • Scott Wagoner (owner, Goat and Compass) spoke in favor, noting that events bring people to the area.
  • Christina Haley (President, Wilmington Downtown Inc.) spoke in favor, stating the daytime, events-based pilot would energize the Brooklyn Arts District during a typically slow season. She committed to providing two WDI Ambassadors for hospitality and trash services.
  • Written comments in favor were received from Amy Cavasos (General Manager, Edward Teach Brewery) and Kyle Haynes (bartender).

Discussion Items

• Pilot Social District Ordinance (O1) – After public comment, Council debated. Councilmember Andrews expressed concerns about notification of residents (many not contacted), the pilot’s limited timeframe (three Saturdays, 12-5 p.m. in February) not yielding meaningful data, and the process lacking collaboration. Councilmember Spears opposed because the district abuts a residential community (Northside) and he cited limited police availability (one officer during proposed hours). Councilmember Rivenbark supported the pilot, recalling the revitalization of North 4th Street. Councilmember Waddell called it a responsible, proactive proposal. Mayor Saffo noted the business owners’ proactive approach and the 12-5 p.m. timeframe. The management plan allows for reevaluation after each event and cancellation if needed. Approved 5-2 (Spears and Andrews opposed).
• Duke Energy Foundation Grant (O2) – Craig Harris, Emergency Management & Resiliency Coordinator, explained the $25,000 grant will purchase and install flood gauges in flood-prone areas to provide real-time data for evacuation decisions and post-storm road clearance. Approved unanimously; second reading waived.
• Greenfield Park Trail Improvement (O3) – Amy Beatty, Parks & Recreation Director, described a $103,494 supplemental appropriation to fund a change order for milling and replacing asphalt on 2.2 miles of trail. The original contract of $387,720 was awarded in October 2024. With the change order, completion expected in approximately eight weeks, weather permitting. Approved unanimously; second reading waived.
• Riverwalk Decking Replacement (O4a & O4b) – Amy Beatty presented two items: an ordinance consolidating funds for annual needs decking replacement (O4a) and a resolution awarding a construction contract to Evans and Sons Construction Co., Inc. for $909,218 over three years (O4b). Work will start at the southern (oldest) end and proceed northward. Annual decking replacement is anticipated at $225,000 per year; remaining funds reserved for railings, banners, and emergency repairs. Both items approved unanimously; second reading waived for O4a.
• Negotiations for Property Disposition (R1) – City Manager Tony Caudle explained that the City owns the commercial space under the residential structure at 202 N. Water Street (developed by East West Partners in 2016). The developer wants to purchase the 34,000 square feet of leased commercial space. Current ground lease brings $56,897/year. Council authorized negotiations; proceeds would be recommended for debt service on the Skyline Center. Approved unanimously.
• Condemnation Actions for Dawson/Wooster Streetscape (R2) – Deputy City Attorney Shawn Evans reported that 44 of 57 parcels have been closed; 13 remain. An amended resolution corrected parcel numbers. Most takings are temporary construction easements; two require small right-of-way areas. Values based on appraisals (minimum $600 for TCEs). Council authorized filing condemnation actions if negotiations fail. Approved unanimously.
• Bloomberg Asphalt Art Initiative Grant Application (R3) – Travis Henley, Planning Manager, described a grant for up to $100,000 to install asphalt art on the 10th Street corridor between Ann and Castle Streets to improve pedestrian safety and activate public space. Installation must occur by December 31, 2026 if awarded. Approved unanimously.
• Funding Agreement with Wilmington Housing Authority (R5) – Rachel Schuler stated that Robert S. Jervay Place, an affordable housing development damaged by Hurricane Florence, was acquired by WHA. A $660,000 operating deficit was discovered due to unpaid subsidies to Telesis. Staff recommends a loan with 180-day repayment from the Affordable Housing Fund. WHA CEO Tyrone Garrett and Board Chair Jeff Hovis explained that the subsidy must be paid to clear the books. 23 units are vacant; 18 will be demolished and rebuilt with potential for additional density. The remaining units can be brought online within 30 days. Councilmember Waddell noted this is separate from prior loans (approx. $800,000 due 2026). Approved unanimously.
• 2025 State and Federal Legislative Agenda (R6) – Kara Spencer, Director of Legislative and Intergovernmental Affairs, reviewed outcomes from 2024 (including SB 319 – permanent cancer benefits for firefighters, SB 802 – C-PACE program, and HB 864 – PFAS legislation not passed but with interest). The 2025 agenda includes support for the Southside Water Treatment Plant and Cape Fear Memorial Bridge replacement (need $485 million), and opposition to legislation undermining local government authority. Approved unanimously.
• Medal of Honor Support (R7) – Resolution supporting awarding the Medal of Honor to Retired Major James Capers, Jr. Approved unanimously.
• Appointments Committee Report (RP1) – Councilmember Rivenbark presented appointments to various boards and commissions. Approved unanimously.

Key Outcomes

• Approved (5-2): Ordinance authorizing a pilot social district in the Brooklyn Arts District (three Saturdays in February, 12-5 p.m.).
• Approved (unanimous): Ordinance accepting $25,000 Duke Energy Foundation grant for flood gauges; second reading waived.
• Approved (unanimous): Supplemental appropriation of $103,494 for Greenfield Park Trail improvement; second reading waived.
• Approved (unanimous): Supplemental appropriation for Riverwalk decking replacement; second reading waived.
• Approved (unanimous): Resolution awarding Riverwalk decking contract to Evans & Sons Construction Co., Inc., not to exceed $909,218.
• Approved (unanimous): Resolution authorizing negotiations for disposition of 202 N. Water Street property.
• Approved (unanimous): Resolution authorizing condemnation actions for Dawson/Wooster Streetscape.
• Approved (unanimous): Resolution authorizing grant application to Bloomberg Asphalt Art Initiative (up to $100,000).
• Approved (unanimous): Resolution authorizing $660,000 funding agreement with Wilmington Housing Authority.
• Approved (unanimous): Resolution adopting 2025 State and Federal Legislative Agenda.
• Approved (unanimous): Resolution supporting Medal of Honor for Retired Major James Capers, Jr.
• Approved (unanimous): Appointments committee recommendations.
• Continued: Public hearings PH1 (Greenville Loop Road special use permit) to March 4, 2025; PH2 (Holly Tree Road recreation facility) to February 4, 2025.
• Continued: Resolution R4 (lease for 115 N 3rd Street) to February 4, 2025.
• Closed Session: Council entered closed session pursuant to N.C. Gen. Stat. §143-318.11(a)(6) to discuss a personnel matter. No action taken; Council provided instructions to staff.