TO: Mayor and Members of City Council
THRU: Jodi Phelps, Assistant City Manager
FROM: Christopher Cauley, MPA, CEcD, Economic & Community Development Director
Robert Van Geons, CEcD, CEO Fayetteville Cumberland County Economic Development Corporation
DATE: August 10, 2026
RE:Title
Adopt a Resolution Supporting Skyeton, Inc., formerly identified as Project Odesa and Authorizing an Application for a $500,000 North Carolina Department of Commerce Building Reuse Grant
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COUNCIL DISTRICT(S):
Council District(s)
District 2
b
Relationship To Strategic Plan:
Goal II: The City of Fayetteville will have a Responsive City Government supporting a diverse and viable economy.
Goal III - City Investment in Today and Tomorrow.
Goal IV - City is a desirable place to live, work and recreate.
Executive Summary:
City Council is asked to adopt the attached resolution supporting the City's application to the North Carolina Department of Commerce Rural Building Reuse Program on behalf of Skyeton, Inc. and authorizing the City Manager to submit the application and execute required application documents.
Skyeton, Inc. has selected a 28,479-square-foot facility at 223 Dedication Drive for its United States headquarters, unmanned aerial systems manufacturing operation and distribution center. The project is expected to create 162 full-time jobs at an average annual wage of $70,759 and make a phase-one capital investment of approximately $3.4 million in real and personal property. The City is requesting $500,000 to support eligible building renovations. The application requires a local resolution of support and a cash match equal to at least 5% of the grant request, or $25,000. This action supports the application only and does not accept or appropriate grant proceeds.
Background:
The Rural Building Reuse Program is administered by the Rural Economic Development Division of the North Carolina Department of Commerce. The program provides grants to local governments for eligible renovations to vacant buildings, expansions of buildings occupied by qualifying existing North Carolina businesses, and qualifying rural health-care projects when the improvements result in new, full-time job creation.
Skyeton, Inc. is considering Fayetteville and Cumberland County for a headquarters, manufacturing plant and distribution center serving customers globally. The proposed location is zoned for heavy industrial use. The Fayetteville-Cumberland Economic Development Corporation, in partnership with the City's Economic and Community Development Department, is assisting with the project and grant application.
City Council previously approved a separate job-creation incentive grant of up to $121,500, payable on a pro-rata basis in three installments as the committed jobs are created. Staff will ask Commerce whether $25,000 of that previously approved local incentive may satisfy the Building Reuse Program's local cash-match requirement. The City will not represent the incentive as an approved match unless Commerce confirms its eligibility.
Issues/Analysis:
Commerce reimburses 50% of eligible Building Reuse expenditures up to the grant amount. Therefore, drawing the full $500,000 award would require documentation of at least $1 million in eligible renovation expenditures. The required 5% local cash match must come from local resources, may not be derived from other state or federal grant funds, and generally must be used for costs that are eligible under the program.
If awarded, the City would serve as the grantee and would be responsible for project oversight, payment requests, reporting and job verification. The company must create the 162 committed full-time jobs and maintain its employment baseline plus the new jobs concurrently for at least six consecutive months. Failure to meet the job commitment could require a pro-rata repayment to Commerce by the City, regardless of whether the City successfully recovers the funds from the property owner or company.
An award would require a later Council action to accept and appropriate the grant and authorize the related agreements with Commerce and the appropriate project parties. Those agreements should include repayment protections, and any security determined appropriate through legal and financial review.
Budget Impact:
No immediate expenditure or budget amendment is requested by this item. Adoption of the resolution commits the City to provide a $25,000 local cash match if the grant is awarded. Staff will first seek Commerce approval to satisfy this requirement using $25,000 of the previously approved $121,500 Skyeton, Inc. job-creation incentive. If Commerce does not accept that funding as the required match, staff will identify an alternative General Fund source or return to Council with a requested appropriation from fund balance as part of the grant-acceptance action.
Options:
1) Adopt the attached resolution supporting the application and authorize the City Manager to submit the $500,000 Building Reuse Grant application and execute required application documents.
2) Do not adopt the attached resolution or authorize submission of the application.
3) Provide other direction to staff.
Recommended Action::Recommended Action
Staff recommends that City Council adopt the attached resolution supporting Skyeton, Inc. and authorize the City Manager to submit the $500,000 North Carolina Department of Commerce Building Reuse Grant application and execute all required application documents.
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Attachments:
Resolution of Support for the Skyeton, Inc. Building Reuse Grant Application