TO: Mayor and Members of City Council
THRU: Kelly Olivera, Assistant City Manager
FROM: Christopher Cauley, MPA, Economic and Community Development Director
Robert Van Geons, President and CEO, Fayetteville Cumberland Economic Development Corporation
DATE: December 9, 2024
RE:
Title
Project Rankin - North Carolina Railroad Company "Invests" Project Investment Letter Authorization
end
COUNCIL DISTRICT(S):
Council District(s)
District 2
b
Relationship To Strategic Plan:
Goal II - Responsive city government supporting a diverse & viable economy
Goal IV - City is a desirable place to live, work, & recreate
Executive Summary:
The Fayetteville-Cumberland Economic Development Corporation (FCEDC) has been working with a property owner at 658 Southern Avenue to redevelop a commercial building for the purposes of expanding the City’s tax base and retaining jobs. City Council is asked to authorize a letter of support stating the City’s willingness to accept and administer a grant from the North Carolina Railroad Company.
Background:
Project Rankin is putting in a new rail spur on the property located at 658 Southern Avenue. The total estimated investment in this property is $1,730,000 and approximately 15 to 20 jobs will be retained by the company. The North Carolina Railroad Company (NCRR) is offering a grant up to $100,000 to support the project. The City serves as the “Government Entity” that receives and disburses the funds. The agreement from NCRR is a tri-party agreement between the company, NCRR, and the City.
The North Carolina Railroad Company (NCRR) owns and manages the 317-mile rail corridor stretching from Charlotte to the Port at Morehead City. They reinvest the revenue back into the railroad and across the state to ensure that this critical lifeline for freight rail service is ready to meet the current and future needs of businesses looking to grow or locate in North Carolina. The NCRR partners with the state’s economic development community and railroads on initiatives designed to drive job creation, freight rail use, and economic growth. Through “NCRR Invests” they evaluate requests for investments to address the freight rail infrastructure needs of companies considering location or expansion in the state.
Issues/Analysis:
The grant requires the City to authorize a letter stating that we will agree to the terms of the draft agreement. A draft of the letter and the grant agreement is attached to this agenda item. City Attorney review of the agreement and letter will be required prior to issuing the letter. Subsequent City Council action will be required upon grant award to accept the term sheet, authorize the execution of the grant agreement, and appropriate the grant.
Budget Impact:
This grant requires no local match from the City of Fayetteville.
Options:
1. Authorize the City Manager to sign a letter consistent with the attached, once approved by the City Attorney’s Office.
2. Do not authorize the City Manager to sign a letter substantially consistent with the attached, once approved by the City Attorney’s Office.
3. Direct staff to some other option.
Recommended Action:
Authorize the City Manager to send a letter consistent with the attached, once approved by the City Attorney’s Office.
Attachments:
NCRR Definitive Project Investment Agreement
Project Rankin Support Letter