TO: Mayor and Members of City Council
THRU: Douglas Hewett, ICMA-CM, City Manager
FROM: Robert Van Geons, President & CEO, FCEDC
DATE: June 13, 2022
RE:
Title
Public Hearing & Consideration of Economic Development Incentives for Project Dogwood
end
COUNCIL DISTRICT(S):
Council District(s)
ALL
b
Relationship To Strategic Plan:
GOAL II: Responsive City Government Supporting a Diverse and Viable Economy
2.1 - To ensure a diverse City tax base
2.2 - To invest in community places to ensure revitalization and increase quality of life
2.3 - To leverage partnerships for job creation and retention, with a focus on the local and regional workforce to increase per capita income
Executive Summary:
The City Council is required by North Carolina General Statue158-7.1(c) to set a public hearing to consider incentives for Project Dogwood. The company behind Project Dogwood is one of the nation’s leading homebuilders. They are looking to establish a building component manufacturing facility to service operations. The proposed project entails the construction of an approximately 130,000-square-foot industrial facility that will be used to manufacture trusses, wall panel systems, and other essential homebuilding components. The company is considering locations in South Carolina, Georgia, and other areas of North Carolina. City Council is asked to consider up to $317,000 in economic development incentive grants paid out over five years for Project Dogwood.
This project is in the City of Fayetteville’s Municipal Influence Area (MIA). North Carolina law allows a property owner to submit a petition to the City requesting annexation. The property owners have requested Voluntary Annexation.
Background:
Project Dogwood will allow for more Fayetteville and Cumberland County residents to secure higher paying jobs, resulting in an improved quality of life. Project Dogwood would create 189 jobs by 2027, paying an average wage of $45,079 per year. This project would inject more than $8.5 million of annual payroll into our community, paying wages 10 percent above our private sector average. The positive impact this company would have on our local economy cannot be understated.)
Project Dogwood is in talks with Realty Link, owners of the former Soffe Building on Dunn Road where Amazon and Fed Ex have opened operations, to build a new 129,600-square-foot building across the street. This project would be the cornerstone for a medium-sized industrial park.
Issues/Analysis:
N/A
Budget Impact:
This project will positively benefit the City’s tax base, generating an estimated $134,000 per year in tax revenue. The project will create a significant investment in real estate and equipment in the City of Fayetteville exceeding $25 million over the next five years.
Options:
1. City Council moves to approve up to $317,000 in economic development incentive grants paid out over five years for Project Dogwood, subject to the aforementioned performance standards.
2. City Council moves to deny the request for incentives to support Project Dogwood.
Recommended Action:
Staff requesting that the City Council hold the required public hearing and City Council moves to approve up to $317,000 in economic development incentive grants paid out over five years for Project Dogwood, subject to the aforementioned performance standards.
Attachments:
Public Hearing Notice - published
NCGS 158-7.1(c)