TO: Mayor and Members of City Council
THRU: Kelly Strickland, Assistant City Manager
FROM: Christopher Cauley, Director of Economic and Community Development
Derrick McArthur, Economic Development Manager
DATE: August 11, 2025
RE:
Title
Administrative Report - Catalyst Site 1 - Six-Month Update on 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 2022 - 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 Council is asked to receive the attached six-month update from Fayetteville State University (FSU) on the three-year Memorandum of Understanding (MOU) for the Catalyst Site. This is the fourth required report per the MOU. FSU has hired a consultant to conduct a comprehensive student housing study.
Background:
On June 12, 2023, City Council authorized the City Manager to execute an MOU with FSU initiating a three-year period for FSU to develop a comprehensive project proposal for City Council's consideration. This agreement enables FSU to pursue financing and development efforts with the objective of presenting a full project proposal within the specified timeframe. As per Section A.2 of the MOU, FSU is required to provide a written update every six months detailing the progress made towards the development proposal to allow for a three-year period wherein the University would bring back a full development proposal for City Council’s consideration. Over the past 24 months, FSU has hired Rieth Jones Advisors (RJA) to conduct a comprehensive student housing study. RJA has an impressive national presence and a diverse portfolio, having partnered with higher education institutions and municipalities across 33 states. Notable projects include:
• A Public Private Partnership (P3) with North Carolina Central University for a 1,274-bed student housing and new dining hall
• University of South Carolina over $500m+ in capital projects
• Eastern Michigan University $212m to include the Welcome Home 2025 P3 initiative
• Appalachian State University $43M Kidd Brewer Stadium expansion
The study involves assessing current housing inventory, occupancy, enrollment trends, and facility conditions. RJA will also conduct stakeholder meetings, focus groups, off-campus market analysis, peer benchmarking, and a student survey to gather insights and data. The study involves assessing current housing inventory, occupancy, enrollment trends, and facility conditions. Stakeholder meetings, focus groups, off-campus market analysis, peer benchmarking, and a student survey will be conducted to gather insights and data.
Issues/Analysis:
FSU plays a crucial role in the community, especially in the City's efforts to revitalize the Murchison Neighborhood. Various studies have highlighted the significance of FSU's connection to Downtown Fayetteville as a driving force for the economic development of both the Downtown area and the University. FSU continues to work with Rieth Jones Advisors and remains fully committed to driving the revitalization of Murchison Road and contributing to the broader economic and educational goals of the City of Fayetteville.
Budget Impact:
This action does not have any budgetary impact. If FSU is successful in forming a P3, the property and its improvements may be returned to the tax roll and generate future revenues.
Options:
1. Receive the six-month update from FSU.
2. Do not receive the six-month update from FSU.
3. Direct staff to some other action.
Recommended Action:
Receive the six-month update from FSU.
Attachments:
CAT Site 1 MOU with FSU - Fully Executed
FSU Memo to the City - Fourth Update