Storage tank yard expanding
Downtown's industrial past juxtaposed against a vision of mixed-use future

By Ken Little

Additions to the Colonial Terminals Inc. storage tank farm between South Front Street and the Cape Fear River could begin sprouting out of the ground in 2009.

Like the 24 existing storage tanks Colonial maintains on its property, the cylindrical metal containers would hold fuel oil and chemicals. New tanks would be built on 18 acres of undeveloped land owned by Colonial adjacent to its complex in the 1000 block of South Front Street, near the Cape Fear Memorial Bridge.

If they are built, the tanks would be located directly to the south of
the proposed high-rise Gateway condominium development.

Colonial’s riverfront tract is already zoned for heavy industrial use, removing a major barrier if the Savannah, Ga.-based company decides to go forward.

“Clearly, we bought that property to expand the business and that’s what we would like to do in Wilmington, grow the business and supply more jobs,” William A. Baker Jr., Colonial vice president, said in late August.

Baker said planning is ongoing. City and New Hanover County officials have not been contacted by the company.

“I think we should be formulating plans by the end of the year,” Baker said. “There is nothing firm at this point.”

A building permit issued by New Hanover County is required to add more storage tanks, along with a technical review by Wilmington city planners, who would study factors like stormwater runoff, the specific location of the tanks and the impact of additional truck traffic. A state-issued wastewater discharge permit may also be needed.

“The main issue is scale and intensity of the use and how it is connected to traffic impacts. We just look for it not to be of an overpowering scale (and) that the traffic can be somewhat mitigated,” said Kaye Graybeal, Wilmington’s development services director.

Colonial’s Front Street facility borders the Cape Fear River and is served by tankers, barges, rail service and trucks. Storage tanks range in capacity from 9,200 to 3.3 million gallons. Liquids stored include various grades of fuel oil and chemicals like ethanol and methanol that are blended with gasoline. Colonial also operates a 129-tank facility in Savannah.

An expanded tank farm in Wilmington may be good for business, but not necessarily in line with the vision of city planners, who would like to see more diverse uses of riverfront land near downtown.

“The reason we created the riverfront mixed use district is because we wanted to find a way the public can utilize it other than for industrial uses,” Graybeal said.

But unlike the controversial Gateway project, there apparently isn’t much residents or developers can do to block Colonial Terminals. Much of the property where new storage tanks would be built was acquired by the company in 2001.

“There’s no opportunity for a protest petition because there’s no zoning issue involved,” Graybeal said.

Wilmington’s riverfront has a long history of industrial and commercial use, a fact not lost on historic preservationists like George W. Edwards, executive director of the Historic Wilmington Foundation.

“Until the 20th century, the waterfront was nothing but a place of work. It would certainly be a fine line to tread there, but you’ve got a major industrial neighbor who has been a good neighbor, as far as I know,” Edwards said. “I don’t have a fully formed opinion at this point. It’s much more difficult to argue against something if it is already zoned.”

It’s unclear how an expansion of Colonial’s Wilmington deepwater terminal would impact the Gateway project, which has run up against determined opposition from neighbors who oppose the proposed building’s profile and potential traffic impact of a major condominium development in the shadow of the bridge.

Senior city planner Christine Hughes said a Colonial Terminals expansion near the Gateway site demonstrates the “delicate balance” between new residential development and the city’s commercial past.

“You’ve got an industrial working waterfront that has been part of the history and part of our community for a long time,” Hughes said. “We do have a very strong maritime industry here and we want to keep it going, so we want to strike a balance.”

One group opposed to the scale of the Gateway project is The Residents of Old Wilmington, many of whose members live in neighborhoods near the bridge and in the vicinity of Colonial Terminals.

“When we see the plans we’ll form some opinion about it,” organization President Kevin O’Grady said. “I’m not sure it would have a great impact on the historic district because it has always been an industrial area.”

The immediate focus of the organization remains on Gateway, O’Grady added.
The 24 tanks at Colonial’s Wilmington facility have a total storage capacity of about 30.3 million gallons.

“We are in the third-party storage business and we take care of the needs of importers and exporters and consumers in the area. We’re essentially expanding the business to take care of local demand,” Baker said.

“We have a good track record and I don’t think there should be any problem with the facilities.”