TO: Mayor and Members of City Council
THRU: Douglas J. Hewett, ICMA-CM, City Manager
Jeffery Yates, Assistant City Manager
FROM: Taylor Floyd, Director of Budget and Evaluation
Tiffany Murray, Chief Finance Officer
DATE: June 22, 2026
RE:Title
Adopt Capital Project Ordinance Amendment 2026-43 to reduce the appropriation from $5.7 million to $3 million, resulting in the return of $2.7 million to the General Fund balanceTitle
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COUNCIL DISTRICT(S):
Council District(s)
2
b
Relationship To Strategic Plan:
Goal III: The City of Fayetteville will be a city invested in today and tomorrow.
Goal IV: The City of Fayetteville will be a desirable place to live, work, and recreate.
Goal VI: The City of Fayetteville will continue to have a collaborative citizen and business engagement base.
Executive Summary:
On November 24, 2025, City Council approved the appropriation of $5.7 million from the General Fund balance for the Stadium View Project. During the budget work sessions, Council expressed consensus to extend the development agreement in two phases over the next two years. City Council is now asked to amend the appropriation by reducing the FY 2027 allocation by $2.7 million and shifting that payment to FY 2028. Additional appropriation will be required to fund the FY 2028 amount.
Background:
In 2017, the City entered into a development agreement with Prince Charles Holdings to support a major redevelopment project around the new minor league baseball stadium. The original plan included new housing, a hotel, retail space, office space, and public amenities intended to create a vibrant destination connected to SEGRA Stadium and the Festival Park area. The City completed its portions of the project, including SEGRA Stadium and the Hay Street Parking Garage, with investments of approximately $37.9 million and $17.8 million, respectively. However, the private development originally planned for the site did not move forward, leaving the hotel, residential, and retail components incomplete.
To advance the original vision, City Council took action in 2025 to bring on a new development partner, Lansing Melbourne Group. LMG has experience with successful downtown redevelopment projects and has demonstrated the financial capacity and long-term commitment needed for a project of this scale. Before moving forward, the City conducted extensive due diligence, including an independent financial review and site visits to LMG projects in Kannapolis, North Carolina. After confirming LMG’s qualifications, City Council approved the assignment of the original development agreement from Prince Charles Holdings to LMG.
On November 10, 2025, City Council approved an amended and restated development agreement for what is now known as the Stadium View project. The agreement authorized the City Manager to finalize and execute all documents necessary to carry out the development. Under the updated plan, LMG will construct two towers above the existing Hay Street Parking Garage, which will remain under City ownership throughout construction. The project will include 124 new residential units, 119 hotel rooms, ground-floor retail space, and new elevator access to serve the garage and towers.
On November 24, 2025, City Council approved the appropriation of $5.7 million from the General Fund balance for the Stadium View Development Project. Under the updated agreement, the developer will complete several public infrastructure improvements, including constructing a cap over the existing parking deck, installing a new elevator, and improving public walkways. In return, the City will provide a loan totaling up to $5.7 million to support these public improvements.
The funding agreement will include $3 million available to the developer and a future, non-binding commitment of $2.7 million. The additional FY 2028 funding will be subject to future appropriation by City Council.
Issues/Analysis:
N/A
Budget Impact:
The City will unappropriate $2.7 million from the General Fund operating budget and return the funds to the General Fund fund balance to support one-time Council initiatives and capital improvement projects. The funding agreement will include $3 million available to the developer and a future, non-binding commitment of $2.7 million, with the additional FY 2028 funding subject to future appropriation by City Council.
Options:
City Council has two options: approve Capital Project Ordinance Amendment 2026-43 as presented, or not approve Capital Project Ordinance Amendment 2026-43 as presented.
Recommended Action::Recommended Action
Adopt Capital Project Ordinance Amendment 2026-43 to reduce the appropriation from $5.7 million to $3 million, resulting in the return of $2.7 million to the General Fund balance.
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Attachments:
Capital Project Ordinance Amendment 2026-43
Budget Ordinance Amendment 2026-7