TO: Mayor and Members of City Council
THRU: Kelly Strickland, Assistant City Manager
FROM: Christopher Cauley, Economic and Community Development Director
DATE: December 8, 2025
RE:Title
Authorize the City Manager to Execute an Option to Purchase Agreement with JBS Developers and the Fayetteville Metropolitan Housing Authority for 6.32+/- Acres of the City’s Catalyst 1 Site
Title
end
end
COUNCIL DISTRICT(S):
Council District(s)
District 2
b
Relationship To Strategic Plan:
Goal IV: The City will be a highly desirable place to live, work and recreate.
Objective 4.6: To reduce poverty and homelessness
Executive Summary:
City Council is asked to authorize the City Manager to sign an Option to Purchase Agreement with JBS Developers and the Fayetteville Metropolitan Housing Authority (FMHA) for a 6.32+/- acre portion of the City’s catalyst site on Murchison Road. The parcels identified in the Option to Purchase Agreement will be used as the location of Central Park Villas, a proposed 84-unit garden-style affordable housing community.
Background:
On November 24, 2025, Council authorized the City Manager to sign a contingent loan commitment letter and subsequent loan documents in the amount of $2,883,811.00 to support the construction of Central Park Villas. The proposed location of this project is a vacant property owned by the City, located at the southern end of Murchison Road and surrounded by Bruner Street, Greensboro Street, and the Martin Luther King, Jr Freeway. JBS Developers and the FMHA are the developers for the proposed affordable housing community and have sent the City an Option to Purchase Agreement in the amount of $545,000.00 for specific parcels that total 6.32 +/- acres. The purchase amount of $545,000.00 was supported by an independent appraisal of the properties provided by the developers with the draft Option to Purchase. The City received a Review Appraisal on December 1, 2025, which determined that the original appraisal of the property’s fair market value at $545,000.00 was reasonable and well-supported.
The Option to Purchase includes an Option Price of $1,500 and an Option Term lasting until March 31, 2027 or until NCHFA renders an adverse decision on the Co-Developers’ LIHTC application, whichever is sooner. The Option to Purchase will be contingent upon the Co-Developers receiving the LIHTC Award, satisfactory environmental reports, and other requirements in the City’s contingent loan commitment.
The draft Option to Purchase Agreement is still under negotiation by the parties.
Issues/Analysis:
No sale shall be consummated until 10 days after a notice summarizing the contents of the resolution has been published, pursuant to N.C.G.S. § 160A-267.
Budget Impact:
The City would receive gross proceeds from the sale of the real property of at least $545,000.
Options:
1. Authorize the City Manager to sign an Option to Purchase Agreement with JBS Developers and the FMHA for the purchase of 6.32+/- acres of the City’s catalyst 1 site for the construction of an affordable housing community.
2. Do not authorize the City Manager to sign an Option to Purchase Agreement with JBS Developers and the FMHA for the purchase of 6.32+/- acres of the City’s catalyst 1 site for the construction of an affordable housing community and proved additional direction to staff.
Recommended Action::Recommended Action
Staff recommends that Council move to authorize the City Manager to sign an Option to Purchase Agreement with JBS Developers and the FMHA for the purchase of 6.32+/- acres of the City’s catalyst 1 site for the construction of an affordable housing community.
end
Attachments:
1. Resolution Authorizing Option to Purchase
2. Draft Option to Purchase