MOREHEAD CITY - A longtime idea that would put a central piece of the Morehead City waterfront to public use is getting new life.

The Morehead City Town Council announced an agreement this week that gives the town the opportunity to purchase property and associated riparian rights that lays the groundwork for efforts to transform the site into a public square and water access.

The waterfront area commonly referred to as the "jib" is a triangular area between 7th and 8th streets and between Evans and Shepard streets.

The town intends to purchase a 0.58 acre site that includes a portion of the jib property and the area on the south side that was once occupied by Ottis' Fish Market and Restaurant.

It is property with history and significance to the waterfront and the town has a unique opportunity to preserve it, said Mayor Jerry Jones.

"As a Morehead City native, I know well the historic significance of the jib and the impact of the late Capt. Ottis and the water dependent uses that he conducted over the years at this location," he said.

At its Jan. 13 meeting, the Morehead City Town Council authorized agreements with the North Carolina Coastal Land Trust to acquire the property from the owner, Carteret Ventures Partnership LLC. Under the agreement, the Coastal Land Trust will hold the property for up to nine months to give the city the opportunity to pursue grants or other funding sources.

Currently, the town is seeking two state grants to help cover the $1.3 million purchase.

In November 2008, in cooperation with the Downtown Morehead City Revitalization Association, the town council approved a $200,000 grant application with the N.C. Division of Water Resources for property acquisition for water access.

"We didn't specify where at the time because we were still evaluating our options," said Morehead City Manager Randy Martin.

This week the council authorized an additional state grant application of $850,000 to help fund the project at the jib site.

The town should know by spring whether it has received any of the grant funds.

Of the $1.3 million purchase price, the town has agreed to pay $1.1 million in cash. The remaining $200,000 is in the form of credit that would be applied to future development fees for new construction in town.

Martin said $1.3 million is well-below the market value, with two independent appraisals coming in above that amount. One of the appraisals exceeded $3 million.

Permits are in place that would allow Carteret Ventures Partnership to develop a multi-story commercial and residential building on the same footprint over the water as the previous buildings. But with the slowdown in the economy, those plans were put on hold, Martin said.

The result has been an opportunity for the town, which has benefited from the willingness of the owners to sell at a less than market value.

Doug Brady, principal for Carteret Ventures Partnership and a Morehead City native who owned Ottis' Fish House and Restaurant and has been involved in waterfront improvement efforts, cited reasons for the partnership's decision.

"First, I think the creation of public space and use by the town would greatly enhance the town and waterfront area. Second, I think that a project like this will spur private sector development of the area and help revitalize the Morehead City waterfront back to the prominence it had in my youth. Third, I want to give back to the town that has helped me succeed not only professionally, but on a personal level," he said.

Brady was chairman of the Waterfront Project Committee appointed by the town council in the spring of 1993 to come up with a comprehensive development plan for the waterfront with the assistance of consultant James B. Willis. A master plan was presented to the town in February 1994 and one of the recommendations was to turn the jib area into a public square.

Martin can name many improvements made in recent years, from the acquisition of Sugarloaf Island and the new town docks to upgrades in infrastructures and a more pedestrian friendly streetscape. But one thing has been lacking.

"We've done a lot of things that have been in this (master) plan, some have been tweaked and changed, but one of them that we have not done is to try to get public control of that jib area," Martin said.

Optimistic that the town will be able to meet the deadline to close on the property, Martin said the town is anxious to turn ideas for the site into reality.

"What we'd like to do is create more waterfront attractions, things for the public to come down and take a look at, be excited about, and bring economic activity to the waterfront," Martin said.