TO: Mayor and Members of City Council
THRU: Kelly Olivera - Assistant City Manager
FROM: Christopher Cauley, MPA - Economic & Community Development Director
Derrick McArthur, - Economic Development Manager, Economic & Community Development
DATE: April 22, 2024
RE:
Title
Authorization to Apply for North Carolina Department of Commerce Rural Economic Development Grant for Phillip’s Towing Services, Inc.
end
COUNCIL DISTRICT(S):
Council District(s)
District 2 Malik Davis
b
Relationship To Strategic Plan:
Strategic Operating Plan FY 2022- 2026
Goal II: 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 VI: Collaborative citizen and Business Engagement
• 6.2: To ensure trust and confidence in City government through transparency and high quality customer service
• 6.3: To inform and educate about local government by enhancing public outreach and increasing community dialog, collaboration and empowerment
Executive Summary:
The Fayetteville-Cumberland Economic Development Corporation is assisting Phillip’s Towing Services, Inc. (through Phillip’s Leasing Systems, LLC), with a substantial rehabilitation of an existing commercial facility. This effort qualifies under the Rural Economic Development Grant from the North Carolina Department of Commerce (NCDOC). The grant application requires a supporting resolution from the local government and authorization for signature of the Mayor or City Manager. Council is asked to adopt the attached resolution and authorize the Mayor and City Manager to sign the grant application.
Background:
The Building Reuse Program, under the Rural Grants/Programs Section of the NC DOC, provides grants to local governments. Three categories of funding are available for 1) the renovation of vacant buildings, 2) the renovation or expansion of a building occupied by an existing North Carolina company wishing to expand in their current location and 3) the renovation, expansion, or construction of health care entities that will lead to the creation of new, full-time jobs.
The City of Fayetteville is requesting a $120,000 Rural Economic Development Grant from the NC DOC for a building reuse grant for Phillip’s Towing Services, Inc. The company will undertake substantial renovations of its property at 311 Alexander Dr; and in turn, guarantee the creation of 10 new full-time jobs. At least $2,000,000 of qualified project expenditures are estimated to be made by Phillip’s Towing Services, Inc. to redevelop this property.
Issues/Analysis:
This grant will incentivize the rehabilitation of an existing and underutilized commercial facility within the City.
Budget Impact:
If awarded, the grant requires that the City provide a five-percent (5%), or $6,000 cash match for the project. The City also has several old building reuse grants that did not require the full local match amount. If awarded, the next Council Action will close out those older grants and transfer the unused match to this grant.
Options:
• Adopt the attached resolution and authorize the Mayor and City Manager to sign the grant application.
• Do not adopt the attached resolution and authorize the Mayor and City Manager to sign the grant application.
• Direct staff to some other course of action.
Recommended Action:
Staff recommends City Council adoption of the attached resolution and authorize the Mayor and City Manager to sign the grant application for Phillip’s Towing Services, Inc.
Attachments:
Resolution of Support for Building Reuse Grant