TO: Mayor and Members of City Council
THRU: Douglas J. Hewett, ICMA-CM, City Manager
Jeffery Yates, Assistant City Manager
FROM: Tiffany Murray, Chief Finance Officer
DATE: November 24, 2025
RE:Title
Adopt Capital Project Ordinance for Stadium View ProjectTitle
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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:
At the November 10, 2025, Council Meeting, the City Council voted to approve an amended and restated version of the Stadium View Downtown Development Agreement. Council also authorized the City Manager to sign the agreement-along with any needed amendments and related documents-to move the project forward. Under the updated agreement, the developer will complete several key public improvements, including adding a cap over the existing parking deck, installing a new elevator, and upgrading public walkways. In return, the City will provide a $5.7 million loan to support these public infrastructure improvements.
Background:
In 2017, the City entered into a development agreement with Prince Charles Holdings to support a significant redevelopment project around the new minor league baseball stadium. The plan included new housing, a hotel, retail shops, office space, and public amenities that would create a vibrant destination connected to SEGRA Stadium and the Festival Park area. The City completed its parts of the project-SEGRA Stadium and the Hay Street Parking Garage-with investments of about $37.9 million and $17.8 million, respectively. However, the private development originally planned for the site did not move forward, leaving the hotel, housing, and retail portions incomplete.
To ensure the original vision could still be achieved, the City Council acted in 2025 to bring on a new development partner, Lansing Melbourne Group (LMG). LMG is known for successful downtown redevelopment projects and has the financial strength 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 visits to LMG projects in Kannapolis, North Carolina. After confirming LMG’s qualifications, the City approved transferring the original development agreement from Prince Charles Holdings to LMG.
On November 10, 2025, the City Council approved an updated and restated development agreement for what is now known as the Stadium View project. The agreement authorizes the City Manager to finalize and sign all documents needed to carry out the development. Under this new plan, LMG will build two towers on top of the existing Hay Street Parking Garage, which will remain owned by the City throughout construction. The project will bring 124 new residential units, 119 hotel rooms, ground-floor retail space, and new elevator access to the garage and towers.
The development schedule begins in January 2026, with construction planned to start in June 2026. The project is expected to be substantially completed by May 2028. This marks an essential step toward fulfilling the community’s original vision of a lively, mixed-use district that supports downtown growth and enhances the area around SEGRA Stadium.
Issues/Analysis:
N/A
Budget Impact:
The City will allocate $5.7 million from the General Fund’s fund balance to support the public infrastructure improvements associated with the project. If, at the time the funds are needed, the General Fund balance falls below the City’s policy goal of maintaining at least 12%, the City would instead use limited obligation debt to cover the cost. While this scenario is not expected, it provides a responsible backup plan to ensure the project remains fully funded. Taking this action is necessary for the City to finalize and execute the funding agreement.
Options:
1. Approve the Capital Project Ordinance as presented.
2. Do not approve the Capital Project Ordinance as presented.
Recommended Action::Recommended Action
Adopt the CPO as presented approving the allocation of $5.7 million from the General Fund fund balance to support the public infrastructure improvements required for the Stadium View project and authorize the City Manager to finalize and execute all necessary funding agreements. This action ensures the City can fulfill its obligations under the updated development agreement with Lansing Melbourne Group (LMG) and move the project forward on schedule. If the General Fund balance falls below the City’s 12% policy threshold at the time funds are needed, authorize the use of limited obligation debt as a contingency funding mechanism.
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Attachments:
Capital Project Ordinance 2026-34