An appraisal valued the nine Boardwalk-district parcels at $3.45 million combined. On September 24, 2026, the Town of Carolina Beach closed on them for $12 million. The difference, about $8.5 million, bought the town control over a block where the zoning had allowed a 50-foot building by right.
For anyone comparing homes, condos or rental properties near downtown Carolina Beach, the effects of that control will show up on a schedule that runs through the next two years, with one part of the land staying in private hands until the fall of 2028.
The Building the Zoning Already Allowed
Carolina Beach's central business district allows 50-foot buildings by right. In 2017, preliminary site plans for these nine parcels showed several mixed-use buildings along the Boardwalk entrance. Most were four stories, or 50 feet at most, and the largest unit count the town cited was 18. Port City Daily reported that those plans were never set in motion. The council member who received them said of the owners, "They had the right to do that."
That is the counterfactual the town paid to remove. Mayor Lynn Barbee told Port City Daily it "was in our interest for them to not do that because then the downtown park idea goes away." He also said the town had wanted the land around the Boardwalk entrance and gazebo stage for more than a decade.
The town didn't need to buy the land to win the dispute that started the deal. Carolina Beach Land Holdings LLC sued in November 2023 over a public sidewalk easement next to the spot where the Ferris wheel usually stands. Council members told Port City Daily they believed the town was in a "comfortable position" to win. Legal fees had already passed $100,000. A win would have kept the sidewalk and nothing else. Council member Vince Losito summed up the litigation as "Basically, all we were doing was running up legal fees." The settlement got the town the parcels, and with them, control over what goes at the heart of downtown.
For a buyer, that changes what a property near the Boardwalk is exposed to. A home or condo a few blocks from the entrance no longer has a by-right four-story building as a possible neighbor on those nine parcels. Asked whether the town might ever sell any of the properties, Barbee told Port City Daily that hasn't been discussed. So the protection comes from public ownership and stated intent, not from a deed restriction.
The $3 Million Discount Was Paid in Parking
The town first agreed to a $15 million price in early 2025. The $3 million reduction came with a condition. Carolina Beach Land Holdings keeps renting four of the parcels for private parking at $1,000 a month until the lease ends in September 2028. Council member Wayne Rouse told Port City Daily the owners said they made "well over" $1 million a year from parking near the Boardwalk. The discount was sized with that income in mind.
So the seller took its discount as two more seasons of parking revenue, and visitors' parking rates are what fund it. Port City Daily reported that one of the private lots charges around $11 an hour with dynamic pricing. The town's own program, run by Pivot, charges a flat $6 an hour and $25 a day.
Here is how the money breaks down:
| Piece of the deal | Amount | Source of funds or terms |
|---|---|---|
| Original settlement price, early 2025 | $15 million | Reduced in 2026 negotiations |
| Final purchase price | $12 million | Closed Sept. 24, 2026 |
| Combined appraised value of nine parcels | $3.45 million | Per the appraisal |
| Truist bank loan | $10 million | 15 years, approved by the Local Government Commission Sept. 1 |
| Town fund balance | $1 million | Cash on hand |
| Room occupancy tax reserves | $1 million | Tourism-tax reserves |
| Leaseback on four parcels | $1,000 per month | Private parking through September 2028 |
Where the Property Tax Rate Fits
Carolina Beach's FY 2026–27 budget, adopted June 9, 2026, raised the town property tax rate from 14.17 to 17.12 cents per $100 of assessed value. On a home assessed at $1 million, the town portion goes from $1,417 to $1,712 a year. The county levy is separate.
The boardwalk deal accounts for only part of that increase. Port City Daily's May budget coverage said the increase was meant mainly to close a roughly $3 million deficit driven by wage and healthcare costs. Part of it covers $1 million of the purchase. The manager's budget message lists inflation, fuel, healthcare and employee costs as pressures. It also says the plan adds more than $900,000 to debt service for land acquisition, projects and equipment. The town hasn't published an annual payment figure for the $10 million loan.
Barbee has said directly that the park isn't meant to pay for itself. "We're not going to create a park and say: 'How do we charge enough people to come to our park to pay for it?'" he told Port City Daily. "That's not how public assets work."
The Park Costs More Than the Land
The land is only the first part of the cost. On September 29, the town announced a $3.5 million provisional grant from the New Hanover Community Endowment for the Carolina Beach Coastal Park and Event Stage. Early ideas include a stage for entertainment and educational programs, a large open lawn, and family amenities such as a possible splash pad. Barbee told Port City Daily that most of the grant will go toward the roughly $6 million needed to design and build the park. With the land purchase and public restrooms included, the full project tops $20 million. The town is also seeking grants to buy one more parcel in the gazebo stage area for $350,000.
Five of the nine parcels are earmarked for the park. In the town's announcement, Barbee pointed to the long history of the site. In 1887, Captain John Harper brought the first day-trippers down from Wilmington, and the stretch has been a gathering place ever since. Mayor Pro Tem Deb LeCompte told WECT that the grant won't cover the whole project and every idea is still preliminary.
The Calendar That Comes With a Boardwalk-Area Address
Buying near the Boardwalk in late 2026 means buying into a schedule, and these are the dates that shape it:
- September 24, 2026. The town closes on all nine parcels.
- October 13 and October 27, 2026. Town Council holds a regular meeting and then a workshop. Neither is listed as a park design session.
- Summer 2027. Barbee told WECT the seasonal amusement rides at 1 Cape Fear Boulevard "will most likely not be on this property next year." He added that the town would consider ideas if the operator wanted to relocate nearby. That was a stated expectation, not a council vote.
- Through roughly 2028. Council and staff plan to spend about two years drawing up the oceanfront park plan with public input.
- September 2028. The private parking leaseback on four parcels ends.
So the next two summers near the Boardwalk will look much like the last ones. The events will continue, the private lots will stay private, and the rides will probably be gone. The bigger change, a public lawn and stage at the center of town, comes after that. For short-term rental investors, guest-facing details like the Ferris wheel and nearby parking are the ones that change first. Our guide for Carolina and Kure Beach vacation rental investors covers the wider rental picture, and our fall update on Pleasure Island covers the rest of the season's changes.
Still Undecided as of October 2026
- The park's design. The town has listed public input as its next step but hasn't posted dates or a format.
- The rides. Only a mayoral expectation so far, with relocation still possible.
- The other four parcels after 2028. Earlier ideas included public parking, fairgrounds or an outdoor venue, and the town manager pointed to state and federal grant programs that could help pay for public use.
- The loan payment. The annual cost of the $10 million loan hasn't been published.
When we price a property near the Boardwalk, we account for all of this: the 50-foot building that won't be built, the parking that stays private until 2028, and the park plan that's still being drawn up. If you own a home or condo near the Boardwalk and want to know how the town's purchase affects your property, Tongue & Groove Luxury Real Estate will go through it with you, block by block. Book a Valuation and we'll start with your address and the town's dated calendar.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.