TO: Mayor and Members of City Council
THRU: Lachelle H. Pulliam, City Attorney
Jeffrey A. Yates, Assistant City Manager
FROM: Kimberly Leonard, CLGBO, CLGFO, CPA, MPA
Budget and Evaluation Director
Kecia N. Parker, NCCP, Real Estate Manager
DATE: April 28, 2025
RE:
Title
Resolution Authorizing the City Manager to Acquire a 3.46 Acre Parcel of Real Property Located on Bonanza Drive for the Fire Department’s Station 9 and Adoption of Capital Project Ordinance Amendment to Appropriate Funding
end
COUNCIL DISTRICT(S):
Council District(s)
4
b
Relationship To Strategic Plan:
Goal I - The City of Fayetteville will be a safe and secure community.
Executive Summary:
The Fayetteville Fire Department has identified the need to relocate Fire Station 9, currently situated at 5091 Santa Fe Drive, to improve service delivery and operational response times. Fire Station 9 was identified as part of the Public Safety General Obligation Bond Referendum. The total $10.25 million planned budget is funded with general obligation bonds.
On January 27, 2025, staff presented to the City Council a briefing on the due diligence activities required prior to acquiring the proposed relocation site. These activities have now been completed and include:
• Property appraisal and review appraisal, confirming market value
• Environmental site assessment, with no concerns raised
• Title search, confirming clear ownership
All findings support the City's interest in proceeding with property acquisition.
The proposed site is owned by Bowles Farm Limited Partnership, and the City has negotiated an Option to Purchase Agreement in the amount of $1,699,500, subject to City Council approval.
To proceed with the acquisition, Council is asked to:
1. Adopt the attached Resolution authorizing the City Manager to execute all necessary documents to finalize the purchase of the property.
2. Adopt Capital Project Ordinance Amendment (CPOA) 2025-46, appropriating $1,718,550 of general obligation bonds. This amount includes:
o $1,699,500 - Property acquisition cost
o $19,050 - Additional due diligence and transaction-related expenses (e.g., legal fees, title insurance, closing costs)
This strategic relocation will enhance the Fire Department’s capacity to respond effectively to emergencies in the growing areas of the City and represents an investment in the safety and well-being of Fayetteville’s residents.
Background:
The Fayetteville Fire Department has identified a 3.46-acre parcel on Bonanza Drive as the proposed new site for Fire Station 9. The current station is located at a heavily congested intersection, which frequently causes response delays and introduces additional safety risks for both the public and fire personnel.
The proposed Bonanza Drive site offers several operational and strategic advantages:
• Improved Response Times: The location is more centrally located within the existing response zone, improving service to previously underserved areas such as Lagrange.
• Enhanced Safety: Relocating away from a high-traffic intersection will reduce hazards for both commuters and emergency responders.
• Future Growth Capacity: The larger site can accommodate future expansion needs for department operations and support functions.
• Optimized Resource Allocation: By relocating Station 9 to this more effective location, the need for a separate Fire Station 20-previously planned for Reilly Road-is eliminated. Resources for that project can now be redirected to other underserved areas such as Northern Murchison Road or Massey Hill.
On January 27, 2025, City staff presented a briefing to the City Council detailing the site and outlining the due diligence process. The Council’s consensus was that purchasing the site is a fiscally responsible investment aligned with both current and long-term operational needs.
As part of the acquisition process, staff completed the following:
• Title Search - Confirmed a clear title to the property
• Appraisal & Review Appraisal - Validated the purchase price against market value
• Phase I Environmental Site Assessment - Found no environmental concerns
Following these evaluations, staff negotiated an Option to Purchase Agreement for $1,699,500, which includes a $20,000 deposit in earnest money. The agreement is subject to City Council approval.
This strategic relocation aligns with the City’s broader public safety and capital investment priorities, helping to enhance service delivery, improve fiscal efficiency, and reduce future capital redundancies.
Issues/Analysis:
Property Acquisition Cost Breakdown - Fire Station 9 Relocation
• Purchase Price (as negotiated): $1,699,500
o Includes $20,000 already paid as earnest money deposit
• Additional Costs: $19,050
o Property Taxes: $10,000
o Title Insurance: $2,000
o Recording Fees: $100
o Closing Costs: $6,950
Budget Impact:
The attached Capital Project Ordinance Amendment (CPOA) 2025-46 advances general obligation bond funding for the Fire Station 9 project from FY 2027 to FY 2025. While this reflects a change in the timing of funds, it does not represent an increase in total project cost, which remains at $10.25 million.
Importantly, this adjustment:
• Does not impact the City's long-term debt plan, as the general obligation debt has not yet been issued
• Can be fully accommodated within the existing recommended tax rates
• Reflects a strategic acceleration of funds to secure the property and maintain project momentum
In summary, this is a scheduling shift-not a cost increase-and is recommended to optimize timing, secure the site, and advance public safety priorities.
.
Options:
A. To proceed, staff is requesting that the City Council:
1. Adopt a resolution authorizing the City Manager to execute the Option to Purchase Agreement and all related documents necessary to acquire the parcel; and
2. Adopt Capital Project Ordinance Amendment (CPOA) 2025-46 to appropriate $1,718,550 of general obligation bonds, for the following:
o $1,699,500 - Purchase price
o $19,050 - Due diligence and transaction-related expenses
B. Alternatively, the City Council can direct an alternative direction.
Recommended Action:
Staff recommends City Council proceed with acquisition and adopt the necessary action.
Attachments:
3.46 Acres Bonanza Drive Map
Resolution for Purchase of Fire Department’s Station 9
Capital Project Ordinance Amendment 2025-46