TO: Mayor and Members of City Council
THRU: Lachelle H. Pulliam, City Attorney
FROM: Kecia N. Parker, NCCP, Real Estate Manager
Kimberly Leonard, CLGBO, CLGFO, CPA, MPA
Budget and Evaluation Director
DATE: February 24, 2025
RE:
Title
Resolution Authorizing the City Manager to Acquire Real Property Located at 6147 and 6151 Raeford Road for the Police Department’s Cross Creek District Office and Adoption of Capital Project Ordinance and Capital Project Ordinance Amendment to Appropriate the Funding
end
COUNCIL DISTRICT(S):
Council District(s)
7
b
Relationship To Strategic Plan:
Goal I - The City of Fayetteville will be a safe and secure community.
Executive Summary:
The City of Fayetteville’s Police Department needs to expand the Cross Creek District Office, currently located at 6147 Raeford Road to better serve the public. The City has leased the space for the Police Department’s use since July 1, 2014. On November 25, 2024, staff briefed the City Council on the due diligence process that was needed prior to the City’s purchase of the property. An appraisal, review appraisal, and environmental report on the proposed location have been completed and found to support the purchase. Staff also conducted a property title search to ensure a clear title.
The City is seeking Council authorization to purchase the property within budgeted resources. The property is owned by Hamann Investments, LLC, and has an appraised value of $1,850,000.00. The Option to Purchase Agreement is in the amount of $1,850,000.00, subject to City Council’s approval. The adoption of the attached Resolution authorizes the City Manager to sign all necessary documents to acquire the identified property. Council is also asked to adopt Capital Project Ordinance (CPO) 2025-41 and Capital Project Ordinance Amendment (CPOA) 2025-44. CPOA 2025-44 will decrease the public safety bond funding for the 911 Call Center project by $1,875,000.00, which will be re-appropriated for the Cross Creek District Office through CPO 2025-41. This $1,875,000.00 will include both the $1,850,000.00 purchase price of the Raeford Rd properties as well as the $25,000.00 in additional costs as outlined below.
Background:
Since July 1, 2014, the City has leased approximately 4,175 square feet of office space along with a 1,200 square foot outbuilding located at 6147 Raeford Road. Currently, the City is paying an annual lease cost of $82,857.36 with an annual increase of 2% for the next four years. The parcel is owned by Hamann Investments, LLC.
The entire parcel consists of 2.05 acres and has a total of approximately 12,595 square feet of leasable space in two buildings with addresses of 6147 and 6151 Raeford Road and includes a modular unit which will also be transferred. There are two other tenants in the buildings with leases expiring within the next two years. The owner contacted the City and indicated the property was being listed for sale. The Police Department (PD) has a need for room to grow in the future.
On November 25, 2024, staff briefed City Council on the parcel and explained the due diligence process. The consensus was that fiscally it was in the City’s best interest to purchase the property. Staff performed a property title search on the parcel and determined it does have a clear title. The appraised value of the property was listed as $1,850,000.00. A review appraisal was completed to ensure accuracy and verified the appraised value of the property. Staff also had a Phase I Environmental Site Assessment completed which showed no issues. Staff negotiated an Option to Purchase Agreement in the amount of $1,850,000.00 with a deposit of $25,000.00 in earnest money, subject to the approval of City Council.
Issues/Analysis:
• The parcel has an appraised value of $1,850,000.00 and the purchase price is the same. The City paid $25,000.00 as earnest money for the property.
• Additional estimated costs of $25,000.00 are being requested as follows: $19,000.00 in taxes, $2,000.00 for title insurance, $100.00 in recording fees and $3,900.00 for closing costs.
• There are two commercial leases on the remainder of the square footage of the building that the City will take ownership of and receive revenue therefrom until their expiration.
Budget Impact:
None
Options:
1. Adopt the Resolution to acquire the real property located at 6147 and 6151 Raeford Road; and adopt CPO 2025-41 and CPOA 2025-44 to appropriate the funding.
2. Not adopt the Resolution; and not adopt CPO 2025-41 and CPOA 2025-44, but provide further direction to staff.
Recommended Action:
Staff recommends that Council move to adopt the resolution to authorize the City Manager to acquire the real property located at 6147 and 6151 Raeford Road for the Police Department’s Cross Creek District Office; and adopt CPO 2025-41 and CPOA 2025-44 to appropriate the funding.
Attachments:
6147 & 6151 Raeford Rd. Map
Resolution for Purchase of PD Cross Creek District Office
Capital Project Ordinance 2025-41
Capital Project Ordinance Amendment 2025-44