WIP: Development Phase I

Phase I - Entrance and Central Core Development

Demand is acute for available property in the South Bay market area. For end-users that are familiar and comfortable with the region, some properties in the WIP can be marketed in their present condition. However, the rate of development will continue to be slow and deliberate. In order to attract significant investment among major development interests, it will be necessary for the CRA to demonstrate its intent to improve the quality of surroundings.

This can be accomplished at three locations (see Phasing Diagram):

Pursue development of the interior of the park near the intersection of E Street and Eubank, as well as the northern portion of Eubank. This involves the development of Blocks 18, 28, and portions of Blocks 26 and 27.
Improve the western E Street entrance through the development of Blocks 34 and 35.
Improve the entrance of the property at the intersection of Eubank and Alameda, as well as the immediate Eubank corridor, involving Blocks 53, 54, 45, and 38. As shown, this area is depicted as Phase IA . distinguished by its location in a possible liquefaction zone.

This sequence of improvements will vastly improve the appearance of the park at its entrances and along its major north-south and east-west corridors, improving the marketability of the park, and setting the context for subsequent phases of development.

Source: Wilmington Industrial Park Economic Adjustment Strategy, Final Report, February 12, 2003, pg. 87

Development Opportunities and Concepts

Blocks 18 and 28 opposite of Juanita's Foods on the east side of Eubank are cleared, highly marketable, and when combined offer a 7-acre project that will be highly sought after if costs can be controlled. The most significant constraint is the four active oil wells on the property, and possible related and unrelated contaminants. However, the incorporation of a superblock concept on these two blocks should provide the acreage necessary to develop by locating parking or landscape areas around the oil wells.

Phase IA Block 34/35 on the West E Street entrance presents a cleared, very marketable six-acre (+/-) development opportunity benefiting from Avalon Street access. Core samples will be necessary to determine development opportunities in light of the potential for liquefaction. If liquefaction danger is present, this property could serve as truck parking or car parking servicing the Phase II project described below. If the soil conditions warrant the building of an industrial facility or complex, this block has the potential to support both the superblock and infill development concepts.

Phase I Infrastructure Upgrade Strategy

Civil engineering analysis performed in support of this strategy indicates that improvements should be made as described in Table 7. This includes $1.2 million in total costs ($1.09/SF for the 26-acre phase), of which $625,000 are local improvements. The balance of $600,000 is recommended for inclusion in the City CIP. With these CIP costs deducted from the total, costs are reduced to $0.53 per square foot.

Although these costs, as a percentage of value, are well below cost burdens typically experienced in .greenfield. locations, this favorable relationship is more a function of high land values than low costs.

Source: Wilmington Industrial Park Economic Adjustment Strategy, Final Report, February 12, 2003, pgs. 90-91