TO: Mayor and Members of City Council
THRU: Jodi Phelps, Assistant City Manager
FROM: Christopher Cauley, Director of Economic and Community Development
Derrick McArthur, Economic Development Manager
DATE: February 23, 2026
RE:Title
Fayetteville State University Update on Memorandum of Understanding for Catalyst Site 1
Title
end
end
COUNCIL DISTRICT(S):
Council District(s)
District 2
b
Relationship To Strategic Plan:
Strategic Operating Plan FY 2022 - 2026
Goal II: Responsive City Government Supporting a Diverse and Viable Economy
• Objective 2.1 - To ensure a diverse City tax base.
• Objective 2.3 - To invest in community places to ensure revitalization and increase quality of life.
Goal IV: Desirable Place to Live, Work and Recreate
• Objective 4.3 - To ensure a place for people to live in great neighborhoods
Executive Summary:
City Council is asked to receive the Fayetteville State University (FSU) fifth required six-month update on the three-year Memorandum of Understanding (MOU) for the Catalyst Site. FSU is currently working on completing a feasibility study and an updated environmental study.
Background:
On June 12, 2023, City Council authorized the City Manager to execute an MOU with FSU initiating a three-year period for FSU to develop a comprehensive project proposal for City Council's consideration. This agreement enables FSU to pursue financing and development efforts with the objective of presenting a full project proposal within the specified timeframe. As per Section A.2 of the MOU, FSU is required to provide a written update every six months detailing the progress made towards the development proposal to allow for a three-year period wherein the University would bring back a full development proposal for City Council’s consideration.
Issues/Analysis:
FSU plays a crucial role in the community, especially in the City's efforts to revitalize the Murchison Choice Neighborhood. Various studies have highlighted the significance of FSU's connection to Downtown Fayetteville as a driving force for the economic development of both the Downtown area and the University.
FSU remains invested in the collaborative redevelopment strategy for the Murchison Road corridor. A significant milestone within this shared vision is the JBS Developer’s and Housing Authority’s effort to construct Central Park Villas. This development represents a meaningful step forward for both the City and the University, advancing redevelopment goals for the corridor and, more specifically, Catalyst Site 1.
The University continues to move forward with strategic planning for the remaining acreage within Catalyst Site 1 and are actively advancing a feasibility study for the Catalyst Site 1 property. This study will better define development opportunities, shape the long-term vision for the site, and determine the highest and best use of the remaining land in alignment with institutional needs and community priorities.
Additionally, FSU is initiating an updated environmental study of the property. Completion of this study is a required step to satisfy necessary regulatory and institutional approvals and will support informed decision-making as future development phases are considered.
Finally, the University is engaged in ongoing discussions with Cumberland County regarding a potential development opportunity within the corridor. While still in the exploratory stage, this opportunity has the potential to become a valuable community asset and aligns with the shared redevelopment vision held by the City and FSU.
Fayetteville State University remains fully committed to advancing redevelopment along the Murchison Road corridor through strategic partnerships, responsible planning, and mission-aligned investment.
Budget Impact:
This action does not have any budgetary impact. If FSU is successful, the property and its improvements may be returned to the tax roll and generate future revenues.
Options:
1. Receive the administrative report.
2. Do not receive the administrative report
3. Direct staff to some other action.
Recommended Action::Recommended Action
Receive the administrative report
end
Attachments:
CAT Site 1 MOU with FSU - Amended and Restated
Catalyst Site 1 (Fifth 6-Month Update)