TO: Mayor and Members of City Council
THRU: Douglas J. Hewett ICMA-CM, City Manager
FROM: Adam J. Lindsay, Assistant City Manager
DATE: December 9, 2024
RE:
Title
NC History Center on the Civil War, Emancipation & Reconstruction Deed Reversion Amendment
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
City Investment in Today and Tomorrow
Desirable Place to Live, Work & Recreate
Executive Summary:
Before taking full control of the property for the history center, the State requests that the reversion clause that the City and Foundation agreed to in 2018 be rescinded in accordance to their policies and practices.
Background:
In November 2022, City and Foundation signed an MOU for funding support for this project. Partners, including the State of North Carolina, committed over $85 million towards this project. Previous to that action, the City conveyed land that is counted towards an in-kind donation towards that funding commitment. In the end, the State of North Carolina will own and operate this center and as a result will need to own all of the land, some of which they already own and some of which was already conveyed to the Foundation by the City. At that time, the City included a reversionary clause in our conveyance of City owned property wanting to ensure that the property was used as intended. Those concerns have been addressed as they had agreed.
Specifically, City conveyed seventeen tracts of land (the “Property”) to North Carolina Civil War & Reconstruction History Center Foundation (now known as NC History Center on the Civil War, Emancipation & Reconstruction Foundation) (the “Foundation”) by Special Warranty Deed recorded in Book 10337, Page 381, Cumberland County Registry (the “Deed”) for the construction of the NC Civil War, Emancipation and Reconstruction History Center (the “Center”). The Deed contained the following reversionary clause (“Reversionary Clause”):
“Be it understood, however, that this conveyance is made to the Grantor in connection with the construction of the North Carolina Civil War & Reconstruction History Center, and should the Grantee not proceed to construct the Center on or before June 22, 2022, or should the property described in Exhibit A cease to be used for these purposes, or should Grantee fail to maintain and care for the historic sites and dwellings included on the parcels and preserve public access thereto then all right and title to the same shall revert, vest in, and become the property of the City of Fayetteville, its successors and assigns, without the necessity of entry or any other legal action on the part of the Grantor.”
Issues/Analysis:
In order to construct the Center, the Foundation will need to convey the Property to the State of North Carolina (the “State”) so that the Property can be recombined with adjacent property owned by the State. The State requires that the Reversionary Clause be terminated and the Property released therefrom at the time the State acquires fee simple title to the Property.
The Foundation requests that Council authorize this revision so that the Council of State, scheduled to meet in December, may formally process the paperwork to recombine all of the property and thus enable the entire site to be developed according to the plans. Taking action today will allow the project to stay on schedule.
The attached proposed revision entitled Release and Termination of Reversionary Clause was drafted by City Legal and reviewed and approved by the Foundation’s Legal Counsel and reviewed by the State’s attorney. .
Budget Impact:
None
Options:
Authorize the City Manager to amend the deed and rescind the reversionary clause in accordance with the State’s expectations and in concurrence with City Legal guidance.
Do not authorize changes and provide further direction to staff.
Recommended Action:
Authorize the City Manager to amend the deed and rescind the reversionary clause in accordance with the State’s expectations and in concurrence with City Legal guidance.
Attachments:
Reversionary Deed Amendment