TO: Mayor and Members of City Council
THRU: Timothy L. Bryant, CEO/General Manager
Fayetteville Public Works Commission
FROM: Fayetteville Public Works Commission
DATE: November 9, 2026
RE:Title
PWC - Approve Interlocal Agreement Granting Long-Term Use of City-Owned Property for Solar Energy Development and Authorize ExecutionTitle
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COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
The proposed agreement supports the City's FY 2027 Strategic Plan, particularly Goal 2: Economic & Strategic Growth and Goal 4: Financially Sound City Providing Exemplary Services.
The project advances strategic land use and intergovernmental cooperation by allowing the Fayetteville Public Works Commission (PWC) to develop renewable energy infrastructure on City-owned property while retaining municipal ownership. The agreement also provides the City with $500,000 in one-time revenue, without requiring City funding for construction, operation, or maintenance.
The proposal reflects the City's commitment to responsible stewardship of public assets, sustainable infrastructure, and long-term community investment. Council's consideration should also balance these benefits against the long-term commitment of the property to utility use.
Executive Summary:
The Fayetteville Public Works Commission (PWC) requests City Council approval of an interlocal agreement granting PWC exclusive use of approximately 50.03 acres of City-owned property along Fields Road for development and operation of a solar photovoltaic generation facility and related electric utility improvements. The City would retain ownership of the land and receive a one-time payment of $500,000. PWC would bear the costs of developing, constructing, operating, maintaining, and ultimately decommissioning the project. The proposed agreement would allow the use to continue for as long as the property serves the solar project or related or succeeding utility purposes, potentially indefinitely. Council action would authorize the City’s participation, subject to final legal review and required approvals.
Background:
The property is identified in Exhibit A to the proposed agreement as PIN 0445-97-3707, approximately 50.03 acres along Fields Road (SR 2215), Cumberland County. PWC proposes to use the site for a solar facility and associated infrastructure. The agreement relies on the interlocal cooperation authority in N.C. Gen. Stat. §§ 160A-460 et seq. and requires approval and ratification by resolution of both governing boards
Main Agreement Terms:
• Property and ownership: The City retains fee title to the approximately 50.03-acre tract; PWC owns the solar and related project equipment.
• Use rights: PWC receives exclusive possession, access, and use for the solar project and related or succeeding electric utility purposes, including modernization, expansion, storage integration, and repowering. City actions materially interfering with these rights require PWC’s written consent.
• Consideration: PWC pays the City $500,000 within three business days after the City executes and delivers a recordable agreement. No rent, annual payment, or additional consideration is specified.
• Duration: The primary term lasts while PWC uses the land for the project or related/succeeding utility purposes and may continue indefinitely. If a court invalidates that duration, the agreement substitutes a 50-year term, subject to any later lawful renewal.
• Responsibilities: PWC funds project development, construction, operations, repairs, replacements, and decommissioning; it must remove equipment and leave the property in a safe condition at termination unless otherwise agreed. PWC is not expressly obligated to construct or place the facility in service.
• Other provisions: The agreement permits transfers to government utility successors, restricts private-party assignment without City consent, preserves governmental defenses, and anticipates recording in the Cumberland County Registry.
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Issues/Analysis:
The proposal supports potential local renewable-generation infrastructure while preserving City ownership. The principal policy consideration is the extent and duration of PWC’s exclusive control of City property in exchange for a one-time payment.
The proposed term does not establish a fixed expiration date, and related or succeeding utility uses could extend the restriction beyond the solar facility’s original service life. No project completion deadline or minimum operating period is stated.
Budget Impact:
The City would receive a one-time payment of $500,000 upon execution and delivery of the agreement. Additionally, the solar facility is expected to generate future growth in payments in lieu of taxes (PILOT), although the amount and timing of that increase have not been finalized. The agreement does not provide for recurring rental payments or other direct annual compensation.
PWC would be responsible for all project development, construction, operation, maintenance, and decommissioning costs. No direct City expenditures or General Fund appropriations are anticipated.
The City would retain ownership of the approximately 50-acre property while granting PWC exclusive long-term use. Although the agreement provides an immediate financial benefit and potential future PILOT revenues, the opportunity cost associated with restricting the property's use for other municipal purposes has not been quantified.
Options:
1. Approve the interlocal agreement and authorize its execution, subject to final review by the City Attorney and completion of the required governing-board resolutions.
2. Approve with negotiated revisions and direct staff to negotiate with PWC.
3. Defer the action and request additional information.
4. Deny PWC’s request.
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Recommended Action::Recommended Action
PWC requests that the City Council approve the Interlocal Agreement between the City of Fayetteville and the Fayetteville Public Works Commission for the development and operation of a solar energy facility on approximately 50.03 acres of City-owned property along Fields Road, providing for a one-time payment of $500,000 to the City, and authorize the City Manager to execute the agreement on behalf of the City, subject to final review and approval as to form and legal sufficiency by the City Attorney. Including an necessary legal and financial actions to implement City Council direction.
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Attachments:
Interlocal Agreement for Solar Facility Use of Municipal Property