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The Dive: Does NHC actually need those strip club parking spots? Plus, privatization at the Port

The Cheetah strip club with New Hanover County's government center in the background.
Benjamin Schachtman
/
WHQR
The Cheetah strip club with New Hanover County's government center in the background.

In this week's edition of The Dive, we look at New Hanover County's desire to buy a strip club — so that it can be converted into more parking. But is that necessary? Plus, some bold suggestions on how the Port of Wilmington could run more efficiently.

Note: You can sign up for The Wilmington Dive, a free weekly newsletter from The Assembly and WHQR, here. And, you can find this week's edition here.

And just a note, The Dive is taking a quick break. We'll see you again next year, on Thursday, January 4, 2024. Happy holidays and Happy New Year!


Much has been said about New Hanover County’s attempts to buy the Cheetah Premier Gentlemen’s Club property.

And why not? That headline would command attention nearly anywhere, plus it comes on the heels of other high-profile government real-estate deals like the county’s government center, Project Grace, the former Bank of America building purchase, and the former PPD building.

But there’s some important things that haven’t been said about the county’s plan.

If you haven’t followed along, here’s a recap. On November 6, County Manager Chris Coudriet added a motion at the end of the county commissioner’s meeting to authorize $2.4 million in funding and hire a law firm to handle the eminent domain claim. It had not been on the published agenda, and only referred to the strip club property cryptically by its tax parcel number. Commissioners voted unanimously to approve it without discussion.

The move was a surprise to both the public and the property owners. While the county had hired a broker to contact them, he had not disclosed his client–a significant omission, since the possibility of the government declaring eminent domain is basically an offer you can’t refuse.

The next day, the county’s press team issued a brief statement essentially saying, “We needed more parking and we have the legal right to do this,” but otherwise refused to answer questions. Commissioners were also buttoned up; one told me they were sending all comments through the county’s attorney.

That didn’t last. Within a few days, commissioners were at pains to add some nuance to the story–chief among them Dane Scalise.

The wording of the actual November 6 motion, read by Chair Bill Rivenbark, was: “The Board of Commissioners hereby declares its intent to exercise the county’s eminent domain authority.” Given that blunt language and the county’s silence, I could forgive people for misunderstanding it.

Both Scalise and vice-chair LeAnn Pierce have expressed strong support for private property rights, making it understandable they would want to distance themselves. This week, Scalise repeated his earlier claims that the county had only ever voted to “explore” eminent domain and moved to rescind last month’s motion.

Commissioner Rob Zapple agreed, saying a voluntary acquisition was “where we have been headed all along.” The motion passed unanimously.

But that still leaves a fundamental question: Why is the county’s custom-built, state-of-the-art, $50-million government center so woefully short on parking?

Some have suggested that the county simply wanted to remove Cheetah for moralistic or aesthetic reasons, especially after State Treasurer Dale Folwell lampooned county officials for setting up shop next door to a strip club. (The county’s new HQ is next to its old one, so they had already been neighbors with the club for two decades; the county denied Folwell’s comments motivated their decision.)

But internal communications do indicate parking was a real concern. Back in August, chief facilities officer Sara Warmurth described safety concerns, poor “customer experience” for residents, employees losing productivity while searching for parking spaces (which forced the county to utilize a shuttle for offsite parking), and tensions with the neighboring bowling alley in an internal memo to Coudriet.

Warmurth said demand had exceeded a 2021 parking study, driven by increasing staff, fewer employees working remotely, and the closure of the only other bowling alley in town. She proposed “purchasing the property that is west and adjacent to the government center building”–that is, the strip club–“to address the situation effectively.” Doing this would garner the county 83 new spots.

Warmurth’s memo still prompts several questions, like why had the study not accounted for staff growth and a return to office post-pandemic?

Government center developers contend there is enough parking, or at least that there will be once work surrounding it is complete. Developer Mike Brown told me that, despite the changes, there will actually be 88 more spots once the Board of Elections facility phase of the project is done in summer 2024. The private mixed-use residential phase will also add parking spots that Brown expects to be available during work hours.

In the end, Brown said the whole area–including the strip club, bowling alley, government center, and private development–is expected to have 890 parking spots, with a peak demand of around 750.

Will every spot be convenient for government employees? Probably not. Will walking across the parking lot on a rainy day be a bummer? Likely. Is that justification for spending $2.4 million? That’s up to the commissioners.

[Disclosure: Commissioner Rob Zapple is a member of WHQR’s governing board, which has no role in editorial decisions.]

Port Report

A conservative think tank has some bold ideas for the state port authority. Among them: outsourcing operations wherever possible to improve efficiencies and save taxpayers money.

The conservative nonprofit John Locke Foundation didn’t necessarily conclude that the North Carolina State Port Authority’s operations are bloated. But it did suggest that like-minded leaders and legislators adopt its cost-saving–albeit occasionally dramatic–suggestions.

The port authority has 250 employees across its three bases, which include an inland rail facility in Charlotte and ports in Morehead City and Wilmington, with Wilmington being its largest and busiest asset.

Donald Bryson, the Raleigh-based group’s CEO and president, acknowledges its latest report contains a lofty request. “Politics, as Otto von Bismarck said, is the art of the possible. And fully contracting out all of the port authority services may not necessarily be politically possible or functional,” Bryson said.

Find more from The Dive, including more great reporting from around southeastern NC and the state here.

Ben Schachtman is a journalist and editor with a focus on local government accountability. He began reporting for Port City Daily in the Wilmington area in 2016 and took over as managing editor there in 2018. He’s a graduate of Rutgers College and later received his MA from NYU and his PhD from SUNY-Stony Brook, both in English Literature. He loves spending time with his wife and playing rock'n'roll very loudly. You can reach him at BSchachtman@whqr.org and find him on Twitter @Ben_Schachtman.