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: September 14, 2026
RE:Title
Adopt a Resolution Supporting Project Crossing and Authorizing an Application for a $152,000 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 Sigma Crossings & Railroad Products, Inc. and authorizing the City Manager to submit the application and execute required application documents.
Project Crossing has selected a 17,490-square-foot facility at 595 S. King St. for its new manufacturing facility. The project is expected to create 15 full-time jobs at an average annual wage of $57,700 and make capital investments of approximately $3.7 million in real and personal property. The City is requesting $152,000 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 $7,600. 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 to support eligible building renovations associated with projects that create new, full-time private-sector jobs.
Project Crossing manufactures railroad products, including precast concrete crossings for mainline and short-line railroads, transit systems, and industrial customers. The company previously operated a manufacturing facility in Sanford and is relocating its North Carolina manufacturing operations to Fayetteville. The proposed operation is expected to create 15 new full-time positions, including plant supervisors, welders, fitters, concrete finishers, general laborers, and other production positions.
The project would be located at 595 S. King Street and includes approximately $3.7 million in acquisition, building improvements, equipment, training, and inventory. The Fayetteville Cumberland County Economic Development Corporation, in partnership with the City's Economic and Community Development Department, is assisting with the project and Building Reuse application.
Issues/Analysis:
The Building Reuse Program requires a dollar-for-dollar match of eligible project expenditures up to the amount of the grant. Accordingly, reimbursement of the full $152,000 award would require at least $304,000 in eligible Building Reuse expenditures. The program also requires a local cash match equal to at least 5% of the grant amount, or $7,600, which must come from local resources.
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 maintain its existing North Carolina employment baseline and create the committed new full-time jobs. Failure to meet the job commitment could require a pro-rata repayment to Commerce by the City. The City's agreement with the appropriate project parties would include provisions addressing these obligations and repayment requirements.
An award would require a subsequent Council action to accept and appropriate the grant and authorize the related agreements with Commerce and the appropriate project parties.
Budget Impact:
No immediate expenditure or budget amendment is requested by this item. Adoption of the resolution commits the City to provide the required $7,600 local cash match if the grant is awarded. No funding for the match is currently identified.
Options:
• Adopt the attached resolution supporting Project Crossing and authorize the City Manager to submit the $152,000 Building Reuse Grant application and execute required application documents.
• Do not adopt the resolution or authorize submission of the application.
• Provide other direction to staff.
Recommended Action::Recommended Action
Staff recommends that City Council adopt the attached resolution supporting Project Crossing and authorize the City Manager to submit the $152,000 North Carolina Department of Commerce Building Reuse Grant application and execute required application documents.
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Attachments:
Resolution of Support for the Project Crossing Building Reuse Grant Application