TO: Mayor and Members of City Council
THRU: Douglas J. Hewett, ICMA-CM, City Manager
FROM: Robert Van Geons, FCEDC President & CEO
DATE: February 24, 2025
RE:
Title
Public Hearing and Approval of Economic Incentives for Project Crossfit
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal III - City Investment in Today and Tomorrow
Goal IV - City is a Desirable Place to Live, Work, & Recreate.
Executive Summary:
City Council is asked to hold a public hearing to receive public comment on proposed economic incentives for Project Crossfit, who is considering Fayetteville and Cumberland County for its headquarters, manufacturing plant, and distribution center for its air dome structures. Council is also asked to approve the proposed five-year economic incentive grant at the conclusion of the public hearing.
Incentives have been requested from the City and County to reaffirm our commitment to Project Crossfit and demonstrate that our community is the right location for this project, and a public hearing has been called to approve or deny those incentives.
Background:
Project Crossfit would create 72 jobs in Fayetteville. The average salary for these jobs is projected at $47,734, exceeding the Cumberland County average. This project would inject more than $3.4 million in annual payroll into our community. Capital investment in phase one is expected to be $4.1 million.
The company is considering a 14+ acre site for its operations, located near the Fayetteville Regional Airport off Aviation Parkway. Three acres are currently in the City, the remaining 11 acres would be voluntarily annexed into the City of Fayetteville. The project would utilize this site to manufacture their domes and then subsequently distribute the finished product to the end user globally.
Project Crossfit is requesting an incentive grant from both the City of Fayetteville and Cumberland County. Paid in annual installments over 5 years, the company would receive a total of $63,948 from the City and $88,170 from the County.
The project is also assessing other sites in multiple states
Issues/Analysis:
If successfully secured, the City of Fayetteville and Cumberland County would benefit from the tax revenue generated by the facility, economic activity stimulated by its investment, and wages paid to the employees.
Project Crossfit is expected to generate an estimated $229,192 in City tax revenue over a ten year period. Net revenue, after cash incentives are paid, is expected to exceed $165,244.
The community is primed to meet the project’s workforce needs. Our local educational institutions, including FTCC, Fayetteville State University, and Methodist University, have programs in place to produce workforce talent that is well-prepared for critical careers in manufacturing, distribution, operations, and more.
Budget Impact:
Project Crossfit will positively benefit the City’s tax base, generating new property and sales tax revenue, while increasing local employment and earnings. The project will create a significant investment in real estate and equipment in the City of Fayetteville, with a phase one capital investment expected to be $4.1 million.
Options:
Option 1: Hold a public hearing to receive public comments and approve the economic development incentive grant to be paid out over five years to support Project Crossfit.
Option 2: Hold a public hearing to receive public comments and deny the proposed economic development incentive grant.
Option 3: Do not hold a public hearing to receive public comments and deny the proposed economic development incentive grant.
Recommended Action:
Fayetteville Cumberland Economic Development Corporation staff recommend that the City Council hold a public hearing to receive public comment and subsequently approve the 5-year economic development incentive grant for Project Crossfit
Attachments:
None.