TO: Mayor and Members of City Council
THRU: Jodi Phelps, Assistant City Manager
Jeffrey Yates, Assistant City Manager
FROM: Christopher Cauley, MPA, CEcD, Economic and Community Development Director
DATE: November 2, 2026
RE:Title
Parkview Owners Associations’ Requests for Removal from the Downtown Municipal Service DistrictTitle
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COUNCIL DISTRICT(S):
Council District(s)
District 2
b
Relationship To Strategic Plan:
Goal 2: Economic & Strategic Growth
Objective 2.1: To ensure a diverse City tax base.
Objective 2.2: To invest in community places to ensure revitalization and increase quality of life.
Objective 2.6: To manage the City's future growth and strategic land use.
Goal 3: Desirable Place to Live, Work, & Recreate
Objective 3.5: To ensure a place for people to live in great neighborhoods.
Goal 4: Financially Sound City Providing Exemplary City Services
Objective 4.1: To ensure strong financial management with fiduciary accountability and plan for future resource sustainability by aligning resources with City priorities.
Goal 5: Collaborative Citizen & Business Engagement Base
Objective 5.1: To ensure collaborative relationships with the business community, local governments, military, and stakeholders.
Objective 5.3: To inform and educate about local government by enhancing public outreach and increasing community dialog, collaboration and empowerment.
Executive Summary:
City Council is asked to provide consensus direction regarding petitions to remove properties owned by members of the Parkview owners’ associations from the Downtown Municipal Service District (MSD).
Background:
The City established the Downtown Municipal Service District (MSD) in 1978 and expanded its boundaries in 1983. Most recently continued through Resolution R2023-024 in June 2023, the MSD levies an additional property tax of $0.1489 per $100 of assessed valuation to support enhanced downtown services, including economic development, beautification, marketing, special events, and organizational support.
Parkview Townhomes and Condominiums, located at 301 Bragg Boulevard, was completed in 2013 through a public-private redevelopment agreement with H & H Holdings. The development includes 49 residential units valued collectively at approximately $19 million and is located entirely within the MSD boundary.
Following City Council discussions in September 2025 and January 2026, the Parkview of Fayetteville Townhome Association and Parkview of Fayetteville Condominium Association submitted formal petitions requesting removal of their respective parcels from the MSD.
At its September 23, 2026, meeting, the City Council Policy Review Committee received confirmation from the City Attorney that the petitions were legally sufficient and unanimously recommended scheduling a public hearing. At its October 12, 2026, meeting, City Council scheduled the public hearing for October 26, 2026. Notice of the hearing was published in the local newspaper on October 16, 2026.
City Council conducted a public hearing on October 26, 2026 and directed staff to bring this item to the November 2, 2026 City Council Work Session.
Issues/Analysis:
The removal process is governed by N.C.G.S. § 160A-538.1(a1). Council must consider whether the identified properties need the district's services, facilities, or functions to a demonstrably greater extent than the remainder of the City. While Parkview is exclusively residential, its proximity to downtown amenities and programming is relevant to this determination. Residential use alone does not establish eligibility for removal.
Following the public hearing, Council may approve removal by ordinance if it finds that the statutory standard is met. Under subsection (b1), the ordinance must pass at two Council meetings by a majority of the voting members present before final adoption. Under subsection (b), removal takes effect at the end of a fiscal year following passage of the ordinance, as determined by Council.
Council is not required to decide the removal requests at the public hearing and may refer the matter for further discussion.
Budget Impact:
Holding the public hearing has no fiscal impact. If Council subsequently approves removal, MSD property tax revenue would decrease beginning in the applicable fiscal year. Without a tax rate adjustment, the City would need to reduce the MSD management contract or increase the General Fund transfer to offset the revenue loss. Any resulting adjustments would require separate Council consideration and appropriate budget action.
Options:
1. Provide consensus direction regarding petitions to remove properties owned by members of the Parkview owners’ associations from the Downtown Municipal Service District (MSD).
2. Do not provide consensus direction regarding petitions to remove properties owned by members of the Parkview owners’ associations from the Downtown Municipal Service District (MSD).
3. Direct staff to some other action.
Recommended Action::Recommended Action
Provide consensus direction regarding petitions to remove properties owned by members of the Parkview owners’ associations from the Downtown Municipal Service District (MSD). Because the determination regarding removal rests with City Council, staff offers no recommendation on the petitions.
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Attachments:
Owners Associations’ Requests
Board of Directors’ Certifications
Map of Municipal Service District Boundary with Park View Townhomes Highlighted
Downtown Municipal Service District Boundary City Council Work Session