How will the project be financed?

The development agreement with Cape Fear Development stipulates that the cost to the county for the construction of a new museum and library, parking deck improvements, and the development fee is not to exceed $55,942,679. The county will then finance this amount and pay interest over the life the debt. This differs from the previous development model of a lease financing option. Given the county’s AAA ratings, the county will be able to borrow at the lowest interest rate possible. 

Cape Fear Development will undergo a competitive rebid process for the project, utilizing three subcontractors for each trade and New Hanover County will engage a third-party construction consultant, who will provide an independent review of the work generated. A construction manager at risk model will be used, to ensure the project can be delivered at or under budget. 

Additional costs, including those for exhibit design and fabrication, furniture, fixtures and equipment, will be part of the total project budget presented in July to Commissioners. These costs are outside of the $55.9 million that the county would issue debt for.

Show All Answers

1. What is the goal of the project?
2. What is Cape Fear Development's involvement in the project?
3. What is outlined in the new development agreement?
4. How will the project be financed?
5. What would the new public facility include?
6. What services will the library have?
7. What services will the museum have?
8. What happens to the current Cape Fear Museum building?
9. Could the existing library building be renovated for the project?
10. Is parking on the block being factored into the project?
11. What will be on the private side of the block?
12. What are the benefits of a Public Private Partnership for this project?
13. What are the next steps for the project?
14. What is the history of Project Grace?