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The downtown Wilmington grocery-store deal fell apart. What's next?

City-owned property at Chestnut and Third streets in downtown Wilmington.
Benjamin Schachtman
/
WHQR
City-owned property at Chestnut and Third streets in downtown Wilmington.

Earlier this month, developers walked away from a proposed grocery store on city-owned property in the heart of Wilmington. WHQR’s Ben Schachtman and Kelly Kenoyer have more on what comes next — and what it might mean for another proposed grocery store, the Northside Food Co-Op.

Benjamin Schachtman: Ok, Kelly, we recently learned that a local development company had walked away from its plans to build a grocery store, reportedly a Publix, on a piece of land opposite Thalian Hall on Third and Chestnut. So, what’s next?

Kelly Kenoyer: Well, the city had initially hoped to sell the land to help pay down debt on the new city hall, the Skyline Center. But they’re not rushing to put the property back on the market just yet.

BS: Right, and there’s been a lot of public conversation about a different option – relocating the Northside Co-op there.

KK: I think it’s worth backing up here to explain why. When the Publix offer came before council a year ago, there was a presentation about how this new grocery store wouldn’t damage the co-op’s chances of being successful.

BS: But the co-op’s own viability studies showed that wasn’t true — and they had to announce they were ‘pausing’ — but not giving up on — the project.

KK: Soon after that information came out, both the endowment and New Hanover County pulled their funding for the co-op, leaving it with few assets — other than the city land on 9th and Fanning where they’d planned to put the grocery store.

BS: I’ll note that the Endowment insists the Publix deal had nothing to do with this, saying instead that the vision had changed too much for their $6.7 million grant. But, honestly, for most people I’ve talked to — that’s just semantics. The Co-op had to pause and pivot because of the Publix deal, so it’s hard to say it’s unrelated.

KK: So that’s where we stand at this exact moment: Publix isn’t coming downtown, the Co-op is lacking funders. So, is this actually an opportunity for the co-op?

BS: We decided to ask every city council member to weigh in on what should happen to that property, now that this deal is terminated. Some were hoping to get more information — JC Lyle talked about looking at the downtown’s needs and looking to fill in “service gaps.” Lyle wants to see housing there, potentially alongside public space and commercial use.

KK: Cassidy Santaguida talked about wanting to eliminate the food desert downtown, but seemed to be keeping her options open about how to do that. Salette Andrews agreed — she wants to see a grocery store downtown.

BS: Chakema Clinton-Quintana said she’s supported the northside co-op since its early days — but said the Chestnut Street property could be a good spot to fulfill what she called the overdue promise of addressing a food desert. But she did say it would have to meet the needs of the community — and, here’s the rub — be sustainable.

KK: David Joyner said he’d like to figure out new options for the co-op, but wanted to hear them weigh in on what that could look like. And Kevin Spears said he would love to see the Northside Food Co-op get the property and has been advocating for that.

BS: Lastly, Mayor Bill Saffo told me a lot of things would have to fall into place for the Northside Food Co-Op to be a part of this property. He said it was possible, but subsidizing it would not be easy without a long-term commitment. All in all, we’re hearing a consensus building about this property — or perhaps another surplus nearby — being an opportunity to get some kind of grocery store. There are also a lot of conversations about a mixed-use development: not to get too far ahead of things, but I’ve heard ideas of combining market rate, workforce and affordable housing, along with the co-op and maybe some kind of community space. That might check more boxes, but it also makes things more complicated!

KK: Of course, we also wanted to know what the Northside Co-op thinks about this. Ben, you asked board member Frankie Roberts to weigh in.

BS: Yeah, he knows this is a complex situation – but he said the first thing he wants to do is hear from the Northside community, what do they think? For example, do they think the Chestnut Street location is a good option — or is it too far from the original mission of putting a grocery store in the heart of the Black community in the Northside? He said if the community is on board, though, that it could be a significant win for everyone involved.

KK: And politically, the new, unanimously Democratic council — especially the new members — are no doubt looking to make their mark on the city. Swooping in to save the day after the county and Endowment walked away? Well, that’s certainly a powerful message.

BS: I do think council members are aware that they need to stick the landing on this, though — however popular it might be to reboot the northside coop project in the heart of downtown, if the store isn’t successful, that’s not good for anyone, and it would be one more broken promise to address the food desert.

KK: And there is, unfortunately, a long history of that. I’ve seen news clippings from the 80s and 90s about bringing a grocery store back to the North Side.

BS: Well, we’re unlikely to see city council move on this before the end of the year. I’ve heard that staff is putting together some information for them, which might take some time. So, we wait and see! For now, thanks for your help reporting this, Kelly.

KK: Happy to do it.

Kelly Kenoyer is an Oregonian transplant on the East Coast. She attended University of Oregon’s School of Journalism as an undergraduate, and later received a Master’s in Journalism from University of Missouri- Columbia. Contact her by email at KKenoyer@whqr.org.
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.