TO: Mayor and Members of City Council
THRU: Kelly Olivera, Assistant City Manager
FROM: Christopher Cauley, Director of Economic and Community Development
DATE: January 22, 2024
RE:
Title
Catalyst Site 1 Memorandum of Understanding with Fayetteville State University - Six Month Update
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:
Fayetteville State University (FSU) has submitted their required six-month update on the three-year Memorandum of Understanding (MOU) for the Catalyst Site. City Council is asked to receive the attached.
Background:
City Council has taken numerous actions since 2008 to acquire, clean up, and redevelop the Catalyst Site 1 - an approximately 15 acre site at the intersection of Bragg Boulevard, Murchison Road, and Rowan Street. City Economic and Community Development (ECD) staff published a Request for Projects on City Owned Land (RFP). The RFP was developed based on other actions by local governments within the State and was posted in May of 2022. ECD actively marketed this RFP to over two dozen developers and posted on numerous planning, community development, and economic development sites. The RFP required a two-step process where potential partners submit a Statement of Interest and Qualifications. After vetting by Staff and City Council, a partner is expected to develop a full development proposal including site plans, elevation designs, and a financing plan for City Council’s consideration.
FSU responded to the RFP and proposed to build housing and supportive uses on the site. On June 12, 2023 City Council authorized the City Manager to execute an MOU with FSU to allow for a three-year period wherein the University would bring back a full development proposal for City Council’s consideration. This allows FSU to undertake financing and development efforts with a goal to bring back a full project proposal to City Council within three years. Section A.2 of the MOU requires a written update on the progress made by FSU every six months on the steps it has taken towards the development proposal.
Issues/Analysis:
FSU is a powerful partner in the community and particularly in the City’s efforts to revitalize our Murchison Choice Neighborhood. Several studies have called for FSU’s connection to Downtown Fayetteville as an economic driver for both the Downtown and the University. FSU may partner with a private developer to provide a mix of uses on the property. The mix of uses, type of property conveyance, and design of the facilities will come back to City Council for final approval.
Staff has reviewed the letter in which FSu states they have begun a comprehensive housing study to assess student housing demands and expects progress in the Spring of 2024. Simultaneously, FSU has begun speaking with public and private partners about other possible uses that support housing and enhance the area.
Budget Impact:
This action does not have any budgetary impact. If FSU is successful in forming a public private partnership, the property and its improvements may be returned to the tax roll and generate future revenues.
Options:
1. Receive the 1st six month report on Catalyst Site 1 from Fayetteville State University.
2. Do not receive the 1st six month report on Catalyst Site 1 from Fayetteville State University.
3. Direct staff to some other action.
Recommended Action:
Staff recommends that City Council move to receive the 1st six month report on Catalyst Site 1 from Fayetteville State University.
Attachments:
CAT Site 1 MOU with FSU - Fully Executed
Catalyst Site 1 (First 6-Month Update) Memo