TO: Mayor and Members of City Council
THRU: Jodi Phelps, Assistant City Manager
FROM: Christopher Cauley, MPA, CEcD, Economic and Community Development Director
DATE: September 14, 2026
RE:Title
Authorize Advanced Reimbursement Schedule for Cape Fear Regional Theatre
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COUNCIL DISTRICT(S):
Council District(s)
District 5
b
Relationship To Strategic Plan:
GOAL II: The City of Fayetteville will have a Responsive City Government supporting a diverse and viable economy
• 2.2: To invest in community places to ensure revitalization and increase quality of life
GOAL IV: The City of Fayetteville will be a highly desirable place to live, work and recreate
• 4.2: To enhance diverse recreation, leisure and cultural opportunities
Executive Summary:
City Council is asked to authorize the City Manager to amend the existing agreement with Cape Fear Regional Theatre at Fayetteville, Inc. (CFRT) to allow the final $500,000 of the City’s previously approved $2.5 million commitment to be reimbursed during Fiscal Year 2026-27.
Background:
During the Fiscal Year 2023-24 budget planning process, CFRT requested City support for the expansion and renovation of its facility. On June 26, 2023, City Council approved a total City commitment of $2.5 million over five years for the project.
The City and CFRT subsequently entered into an agreement dated December 13, 2023. The agreement provides for an initial draw of $1 million after August 2024, followed by additional draws of up to $500,000 in each of the following three years, subject to annual appropriations.
The City has previously reimbursed CFRT $1.5 million under the agreement. CFRT submitted its next scheduled $500,000 reimbursement request on August 13, 2026. That request is being processed separately in accordance with the existing agreement.
On August 25, 2026, CFRT requested that the City accelerate the final $500,000 reimbursement and make it available during Fiscal Year 2027. CFRT indicated that accelerating the payment would reduce the need to incur additional borrowing costs as construction is completed. The request does not increase the City’s previously approved $2.5 million commitment.
Issues/Analysis:
CFRT is requesting that the City make its final $500,000 reimbursement during Fiscal Year 2026-27 rather than in the following fiscal year. Because this changes the payment schedule in the existing agreement, an amendment is needed.
Budget Impact:
The Fiscal Year 2026-27 Adopted Budget includes $1 million for the Cape Fear Regional Theatre commitment. The adopted budget therefore supports both the currently scheduled $500,000 reimbursement and the requested acceleration of the final $500,000 reimbursement. No additional appropriation is required.
Options:
• Authorize the City Manager to execute an amendment to the December 13, 2023 agreement with Cape Fear Regional Theatre at Fayetteville, Inc. to allow the remaining $500,000 reimbursement to be made during Fiscal Year 2027, subject to the other terms of the agreement.
• Do not authorize acceleration of the reimbursement schedule. The remaining $500,000 would continue to be reimbursed according to the schedule established in the existing agreement.
• Direct Staff to some other action.
Recommended Action::Recommended Action
Authorize the City Manager to execute an amendment to the December 13, 2023 agreement with Cape Fear Regional Theatre at Fayetteville, Inc. to allow the final $500,000 of the City’s previously approved $2.5 million commitment to be reimbursed during Fiscal Year 2026-27, subject to the other terms of the agreement.
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Attachments:
Cape Fear Regional Theatre-City Support of Expansion - Contract
Accelerated Payment Request Letter 8.22