TO: Mayor and Members of City Council
THRU: Jodi Phelps, Assistant City Manager
FROM: Christopher Cauley, MPA, Economic and Community Development Director
Derrick McArthur, Economic Development Manager
DATE: October 5, 2026
RE:Title
Downtown Municipal Service District FY26 Fourth Quarter Update from Cool Spring Downtown District, Inc.Title
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COUNCIL DISTRICT(S):
Council District(s)
District 2- Council Member Malik Davis
b
Relationship To Strategic Plan:
Goal II: Responsive City Government Supporting a Diverse and Viable Economy.
• Strategic Objective 2.1: Ensure a diverse City tax base.
• Strategic Objective 2.2: Invest in community places to ensure revitalization and increase the quality of life.
• Strategic Objective 2.4: Sustain a favorable development climate to encourage business growth.
Goal IV: Desirable Place to Live, Work, and Recreate
• Strategic Objective 4.5: Ensure a place for people to live in great neighborhoods.
Goal VI: Collaborative Citizen and Business Engagement.
• Strategic Objective 6.2: Ensure trust and confidence in City government through transparency and high-quality customer service.
• Strategic Objective 6.3: Inform and educate about local government by enhancing public outreach and increasing community dialog, collaboration, and empowerment.
Executive Summary:
Staff recommends that City Council receive the FY26 Fourth Quarter Report submitted by Cool Spring Downtown District, Inc. (CSDD) for the Downtown Municipal Service District (MSD). The report covers April 1 through June 30, 2026, and summarizes performance under the City's agreement for enhanced services.
Background:
On July 1, 2023, the City of Fayetteville (City) and CSDD entered into an agreement to provide enhanced services for an Arts and Entertainment Focused Downtown MSD. The agreement includes five service areas: Economic Vitality and Development; Art and Design Enhancements; Promotion and Marketing; Special Events and Programming and Partnership; and Organizational Support and Conflict Resolution. Under the agreement, CSDD submits quarterly performance reports to the City for review. The attached report covers April 1 through June 30, 2026, the fourth quarter of FY26.
Issues/Analysis:
CSDD reported the following FY26 fourth-quarter outcomes:
• Three (3) new businesses welcomed to the district.
• Two (2) businesses relocated to new spaces within the district.
• $114.8 million in new investment and 813,400 gross square feet completed or underway.
• More than 2,000,000 visits and 518,400 unique visitors to the district.
• Approximately 17,300 attendees at Juneteenth.
• More than 20 Fay-Fix-It reports submitted for downtown maintenance.
Budget Impact:
Receiving the report has no additional budget impact. Funding for the agreement for FY27 has already been approved and is supported by revenues generated by the MSD property tax rate and a transfer from the General Fund. No additional appropriation is requested as part of this item.
Options:
A. Receive the FY26 Fourth Quarter Report as presented.
B. Do not receive the FY26 Fourth Quarter Report and request additional information or revisions.
C. Take no action.
Recommended Action::Recommended Action
Staff recommends that City Council receive the FY26 Fourth Quarter Report from CSDD as presented.
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Attachments:
Cool Spring Downtown District Quarterly Report, April 1, 2026 - June 30, 2026
Cool Spring Downtown District FY26 Fourth Quarter Report Presentation