Coldwell Banker Sea Coast Advantage Blog

DEVELOPER OF RIVER BLUFFS IN CASTLE HAYNE INVESTS $4 MILLION OF PRIVATE FUNDS TO BRING SEWER TO 313-ACRE RIVERFRONT DEVELOPMENT


Posted: September 23, 2015 by Kathy Alexander

Castle Hayne, NC – When local developer Burrows Smith first walked the property in Castle Hayne now known as
River Bluffs, he envisioned a unique community with rare riverfront access just minutes from downtown Wilmington.
Yet that vision had one significant roadblock: the property had no sewer. Today, a decade later, the sewer lines are
in and sales are underway at this 313-acre new home community. But the route these sewer lines took to become a
reality is nothing short of extraordinary.
River Bluffs Development Corporation, owned by Wilmington Holding Corporation (WHC) and Burrows
Smith, fronted the $4.126 million it took to install a lift station on site and to lay the six miles of sewer lines required
to connect River Bluffs to Cape Fear Public Utility Authority’s 23rd Street wastewater treatment plant. Why did a
private company make such a huge investment in public infrastructure? For two reasons: (1) banks typically don’t
lend developers funds for this type of “high risk” infrastructure, and (2) Cape Fear Public Utility Authority was
focused on other projects that took precedence.
“We financed all of this out-of-pocket,” said Burrows Smith, “because sewer was absolutely necessary to
the success of this project. We have such a unique property here at River Bluffs that we were confident the
investment was worthwhile. And now that sewer is available in this area, we hope to see a great deal more
development in Castle Hayne, including new homes, retail and commercial projects.”
To make this sewer project a reality, River Bluffs negotiated a “non-standard” utility agreement with Cape
Fear Public Utility Authority (CFPUA). The agreement conveys ownership of the lift station, six miles of pipe, and
sewage capacity to CFPUA. The new system has a capacity of one million gallons per day. River Bluffs requires
half of that capacity, or 500,000 gallons, leaving a surplus capacity of 500,000 gallons for other projects.
The agreement negotiated with CFPUA allows River Bluffs to be reimbursed for sewer capacity when other
developers tie into the new system at a rate of $4.12 per gallon. For instance, if a developer had a project that
required 100,000 gallons per day, the one-time, upfront cost to tie into the River Bluffs system would be $412,000,
payable to River Bluffs. In contrast, according to Smith, if a developer were to develop their own treatment facility,
the sewer capacity could cost between $20 and $25 per gallon, or $2 million to $2.5 million.
“Over time, this reimbursement agreement will enable us to recoup some of our initial $4 million
investment, but we will never recoup all of it,” said Smith. “This was an investment in River Bluffs and an investment
in the Greater Wilmington community and we hope other developers will follow our lead.”
Added Smith, “This agreement is a great example of how public and private partnerships can be a win-win
froisre e ivne pryroopneer itny vvoalvlueeds, bbeuct amuosset ooff tahlle, faovra tihlaeb ciloitmy omf usneiwtye or.f ICna tshtele l oHnagy-nteer.m In, wthee wsihllo sret-ete mrmo,r ew ep eaonptilcei pliavitneg s heeerineg a and
rise in property values because of the availability of sewer. In the long-term, we will see more people living here and
more businesses locating here. This is what happens when sewer comes into an area.”
Sewer service is a catalyst for development, according to Smith. “The developers of Porters Neck did a
similar type of agreement 25 years ago and look at that area today. Our new force main project could be a similar
type of catalyst for this region of the county.”
According to Smith, the new force main is both an economic and environmental boon for Castle Hayne.
“This new force main is a critical first step to getting sewer into the area,” said Smith, “and will ultimately alleviate
the impact of the failed septic systems in this region. As more development comes into the area and more lift
stations are created, the sewer capacity will increase and more homeowners will be able to tie into the system.”
ABOUT RIVER BLUFFS
River Bluffs is a private, 313-acre new home community developed on a philosophy of sustainability and
environmental preservation. The community is ideally located in a pristine, waterfront section of Castle Hayne and
framed by high bluffs overlooking the Northeast Cape Fear River. Residents are just 10 minutes from downtown
Wilmington either by car or boat.
More than a third of the site’s 313 acres will be permanently preserved as open space, trails and parks. All
community amenities are built with the latest energy saving technology and the development team members are
experts in the latest energy efficient building practices and opportunities. River Bluffs is the first community of its
kind to incorporate a certified Organic Farm to support the community’s restaurant and cafe, as well as provide
organic farming teaching facilities for residents and students.
Amenities include a pool, clubhouse, fitness center, tennis courts, riverfront restaurant, café/grocery, a
deep-water marina with 141 boat slips and an expansive Riverwalk and gazebo overlooking the Cape Fear River.
The community is comprised of two primary neighborhoods: Rosewood Landing, which includes 200 onestory
brick homes ranging in size from 1,900 to 2,900 square feet and $304,500 to $469,500; and River Bluffs,
which includes 400 custom homes designed in the coastal cottage tradition. Single family, custom homes range in
price from $350,000 to $800,000 .
Other notable projects in which the River Bluffs development team was involved include Sea Watch at Kure
Beach, Wrightsville Sound Office Park, Westbay, Plantation Landing, Sagewood, South Harbour Village and
Lumina Commons.
For more information, visit www.riverbluffsliving.com.
###

Loading Comments

 Categories


 Archives


Real Estate Links Our Domains