TO: Mayor and Members of City Council
THRU:
FROM: Douglas J. Hewett, ICMA-CM, City Manager
DATE: November 10, 2025
RE:Title
Legislative Hearing on Amended and Restated Proposed Stadium View Downtown Development Agreement
Title
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COUNCIL DISTRICT(S):
Council District(s)
2
b
Relationship To Strategic Plan:
Goal III: The City of Fayetteville will be a city invested in today and tomorrow.
Goal IV: The City of Fayetteville will be a desirable place to live, work, and recreate.
Goal VI: The City of Fayetteville will continue to have a collaborative citizen and business engagement base.
Executive Summary:
This is a public hearing for a proposed Amended and Restated Downtown Development Agreement (DDA) between the City of Fayetteville and Fay Hay Master Venture LLC, an affiliate of Lansing Melbourne Group (LMG), for the completion of the Stadium View Project located adjacent to SEGRA Stadium and above the Hay Street Parking Garage. The proposed DDA includes the development of multi-family residential units, hotel units, retail space and elevators at 466 Hay Street.
Background:
The City entered into a Downtown Development Agreement (DDA) on March 28, 2017, with Prince Charles Holdings, LLC, (Prince Charles Holdings) and PCH Development Co., LLC (Developer) to advance a mixed-use redevelopment surrounding the new minor league baseball stadium. That original DDA envisioned a transformative downtown project integrating hotel, residential, office, retail, and public facilities centered around the stadium and the Festival Park corridor.
While SEGRA Stadium and the Hay Street Parking Garage were successfully complete - with City investments of approximately $37.9 million and $17.8 million, respectively - the vertical development originally contemplated for the site was stalled. As a result, the retail, residential, and hotel components remain incomplete.
In 2025, the City Council reaffirmed its commitment to completing the original vision by engaging a new development entity, Lansing Melbourne Group (LMG). LMG has a proven track record of downtown redevelopment projects and a long-term investment horizon consistent with the City’s goals.
At the request of the City’s current development partner, PCH, the City approved the assignment of the DDA to LMG. Additionally, before approving the assignment, the City completed its due diligence on the suitability of LMG for this partnership. That due diligence included, among other things, review of financials by an independent consultant and tours of completed projects by LMG in Kannapolis, NC. Based upon this review, the City Council directed the City Attorney and City Manager to bring forward the proposed DDA before the end of 2025.
Issues/Analysis:
The Amended and Restated DDA supersedes the 2017 agreement and defines the next phase of the Project, to be comprised of two towers built above the Hay Street Parking Garage.
Key elements include:
• Project Components: 124 residential units, 119 hotel units, retail, elevators, and public walkways.
• Property Ownership: City retains the garage.
• City Financing: Up to $5.7M loan for public improvements.
• Minimum Assessed Tax Value: Developer guarantees $45M with a gap contribution obligation.
• Proposed Development Schedule: Budget (Jan. 2026), Financing Commitments (Feb. 2026), Permits (Apr. 2026), Financial Closing (May 2026), Commence Construction (June 2026), Substantial Completion (May 2028).
• The proposed DDA aligns with N.C.G.S.§160D-1315 and §160D-1001, authorizing downtown development projects combining public and private facilities. It clarifies roles, performance requirements, and preserves the City’s regulatory and immunity protections while ensuring transparency under state law.
Budget Impact:
Public Investment: The DDA provides for a loan up to $5.7M for public goods including but not limited to elevators, roofing, and accessibility improvements. Further, loan funds are only accessible once all other financing and owners’ equity is included following the financial closing.
Private Investment: Estimated at $45M in taxable development.
Public Benefits: Job creation, increased tax base, improved accessibility, enhanced downtown vitality.
Risk Protections: Performance bonds, MATV guarantee, regular progress reporting to include independent review by an owner’s agent and subordination of development air rights, subject to other security holders’ positions.
Additionally, the proposed DDA schedule, negotiated with LMG, provides clear timelines that would allow the City to seek additional remedies against LMG or PCH, should development milestones not be reached by August 2026.
Options:
1. Approve the Stadium View Downtown Development Agreement and authorize the City Manager to execute the agreement, subject to any necessary amendments, as well as any ancillary agreements necessary to implement the project.
2. Do not approve the Stadium View Downtown Development Agreement and provide staff with further direction.
Recommended Action::Recommended Action
Conduct the legislative hearing and authorize the City Manager to execute the Amended and Restated Downtown Development Agreement, subject to any necessary amendments, as well as any ancillary agreements necessary to implement the project.
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Attachments:
Amended and Restated Proposed Stadium View Downtown Development Agreement