TO: Mayor and Members of City Council
THRU: Kelly Olivera, Assistant City Manager
FROM: Christopher Cauley, Director of Economic and Community Development
Derrick McArthur, Economic Development Manager
DATE: August 5, 2024
RE:
Title
Administrative Report - Catalyst Site 2 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:
Fayetteville State University (FSU) has submitted their second required six-month update on the three-year Memorandum of Understanding (MOU) for the Catalyst Site. 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 six 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:
• North Carolina Central University 1274 bed student housing and new dining hall Public Private Partnership (P3)
• 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. The findings will be integrated into FSU’s strategic and campus master plans.
Issues/Analysis:
FSU plays a crucial role in the community, especially in the City's efforts to revitalize the Murchison Choice 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 is considering potential collaboration with a private developer to incorporate a variety of uses for the property. The proposed mix of uses, property transfer type, and facility design will be presented to the City Council for final approval.
The ongoing study conducted by RJA will be postponed until the beginning of the current university school year to include stakeholder meetings and a student survey.
Budget Impact:
This action does not have any budgetary impact. If FSU is successful in forming a public private partnership, the property and its improvements may be returned to the tax roll and generate future revenues.
Options:
For informational purposes.
Recommended Action:
No action required.
Attachments:
CAT Site 1 MOU with FSU - Fully Executed
Catalyst Site 1 (Second 6-Month Update)
RJA Experience & Housing MP Approach