TO: Mayor and Members of City Council
THRU: Telly C. Whitfield, Ph.D. - Assistant City Manager
FROM: Christopher Cauley, MPA - Economic & Community Development Director
Taurus Freeman, MPA - Assistant Director, Economic & Community Development
DATE: March 28, 2022
RE:
Title
Authorization to Apply for North Carolina Department of Commerce Rural Economic Development Grant for Dedicated North Carolina Holding, LLC
end
COUNCIL DISTRICT(S):
Council District(s)
District 5 - Johnny Dawkins
b
Relationship To Strategic Plan:
Strategic Operating Plan FY2022
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 Dedicated North Carolina Holding, LLC (also known as ChenMed, 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 the signature of the Mayor or City Manager. Staff is requesting the City Council 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 NCDOC, 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 $300,000 Rural Economic Development Grant from the NCDOC for a building reuse grant for Dedicated North Carolina Holding, LLC. The company will undertake substantial renovations of its property at 4101 Raeford Road; and in turn, guarantee the creation of 30 new full-time jobs. The grant requires that the City provide a five-percent (5%), or $15,000 cash match for the project. At least $1,482,500 of qualified project expenditures will have to be made by ChenMed to qualify for funding.
Issues/Analysis:
This grant will incentivize the rehabilitation of an existing and underutilized commercial facility within the City.
Budget Impact:
If awarded, a match may be required; however, the City also has several grant funded programs that may benefit this business. If those programs are utilized, that may qualify as the match. Sourcing of the match will be presented if awarded.
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; or
• 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 Dedicated North Carolina Holding, LLC.
Attachments:
Resolution of Support for Building Reuse Grant