TO: Mayor and Members of City Council
THRU: Kelly Olivera, Assistant City Manager
FROM: Christopher Cauley, MPA, Director of Economic and Community Development
DATE: June 12, 2023
RE:
Title
Catalyst Site 1 Memorandum of Understanding with Fayetteville State University
end
COUNCIL DISTRICT(S):
Council District(s)
District 2
b
Relationship To Strategic Plan:
Strategic Operating Plan FY 2023
Goals 2026
Goal II: Responsive City Government Supporting a Diverse and Viable Economy
• Objective 2.1 - To ensure a diverse City tax base.
• Objective 2.3 - To invest in community places to ensure revitalization and increase quality of life.
Goal IV: Desirable Place to Live, Work and Recreate
• Objective 4.3 - To ensure a place for people to live in great neighborhoods.
Executive Summary:
City Economic and Community Development (ECD) staff published a Request for Projects on City Owned Land (RFP) and actively marketed the opportunity to local, state, and national developers. Fayetteville State University (FSU) responded to the RFP and is proposing to build housing and supportive uses on the site. City Council is asked to authorize the City Manager to execute the attached Memorandum of Understanding (MOU) with FSU. This will allow for FSU to undertake financing and development efforts with a goal to bring back a full project proposal to City Council within three years.
Background:
City Council has taken numerous actions since 2008 to acquire, clean up, and redevelop the Catalyst Site 1 - an approximately 15 acre site at the intersection of Bragg Boulevard, Murchison Road, and Rowan Street. The RFP was developed based on other actions by local governments within the State and was posted in May of 2022. ECD actively marketed this RFP to over two dozen developers and posted on numerous planning, community development, and economic development sites. The RFP requires a two-step process where potential partners submit a Statement of Interest and Qualifications. After vetting by Staff and City Council, a partner will be expected to develop a full development proposal including site plans, elevation designs, and a financing plan for City Council’s consideration. FSU has submitted and a MOU has been negotiated to allow for a three-year period wherein the University would bring back a full development proposal for City Council’s consideration.
Issues/Analysis:
Despite the marketing efforts made by City staff and partner agencies, only one Statement of Interest has been received in the approximately six months the RFP has been out. While the City does not have multiple proposals to consider, FSU is a powerful partner in the community and particularly in the City’s efforts to revitalize our Murchison Choice Neighborhood. Several studies have called for FSU’s connection to Downtown Fayetteville as an economic driver for both the Downtown and the University.
FSU may partner with a private developer to provide a mix of uses on the property. The mix of uses, type of property conveyance, and design of the facilities will come back to City Council for final approval. Staff is recommending a three-year MOU wherein FSU will have site control to develop a full development proposal for Council’s review.
Budget Impact:
This action does not have any budgetary impact. If FSU is successful in forming a public private partnership, the property and its improvements may be returned to the tax roll and generate future revenues.
Options:
1. Authorize the City Manager to execute a Memorandum of Understanding with Fayetteville State University for development of Catalyst Site 1.
2. Do not authorize the City Manager to execute a Memorandum of Understanding with Fayetteville State University for development of Catalyst Site 1.
3. Provide other direction to Staff.
Recommended Action:
Staff recommends that City Council move to authorize the City Manager to execute a Memorandum of Understanding with Fayetteville State University for development of Catalyst Site 1.
Attachments:
Catalyst Site 1 Memorandum of Understanding with Fayetteville State University