TO: Mayor and Members of City Council
THRU: Douglas J. Hewett, City Manager, ICMA-CM
FROM: Kristoff Bauer, Deputy City Manager
DATE: December 10, 2018
RE:
Title
Joint Fayetteville State University Wellness / Senior Center Memorandum of Understanding - Capital Project Ordinance 2019-22 for Senior Center East
end
COUNCIL DISTRICT(S):
Council District(s)
2
b
Relationship To Strategic Plan:
Desirable Place to Live, Work and Recreate
Obj. 1: To enhance recreation, leisure and cultural opportunities for all to thrive that reflects our diversity
Citizen Engagement & Partnerships
Obj. 3: To develop and maintain collaborative relationships between government units, the local military and stakeholders
Executive Summary:
The City has been working with Fayetteville State University (“FSU”) to develop a collocated wellness facility and senior center on the corner of Murchison and Filter Plant. The initial steps of this partnership are outlined in the attached Memorandum of Understanding (“MOU”). The first step is to obtain site control which will require both parties to acquire land not currently owned. This item requests that Council consider authorizing the City Manager to execute the proposed MOU and to take all action necessary to complete the property transactions contemplated thereby.
Capital Project Ordinance 2019-22 will appropriate $2,100,000 of funding for the Senior Center East, a Parks & Recreation Bond Project. This appropriation will provide needed project funding to implement the MOU from anticipated General Obligation Bond proceeds.
Background:
The City’s Parks & Recreation Bond included two senior centers; one in western Fayetteville and one in the east. The Western Senior Center is under construction on a location adjacent to Lake Rim. After discussion during the January 2, 2018, Work Session and based on the recommendation of the Parks Bond Council Subcommittee, Council approved a Memorandum of Understanding (“MOU”) with Fayetteville State University (“FSU”) to study the joint development of a wellness facility and the eastern senior center on the corner of Murchison and Filter Plant on January 8, 2018.
The feasibility study was completed and was discussed by Council during the June 4, 2018, Work Session. The study examined options including:
• The joint development of FSU’s wellness facility and the City’s senior center into a single building
• The joint development of FSU’s wellness facility and the City’s senior center into a single building along with a natatorium supportive of high school athletic programs and tournaments
• The collocation of FSU’s wellness facility and the City’s senior center on a jointly develop development site sharing parking and other infrastructure but otherwise separate and sitting on independently owner parcels
The Council referred the matter to the Parks Bond Council Subcommittee for further discussion with FSU representatives in order to develop a recommendation to Council regarding the form of this partnership.
Through those discussions it became clear that the collocation of facilities was the preferred option. It also became clear that FSU’s project needed to be completed earlier than the City’s. Working with the Park Bond Committee, staff developed a financial plan that supports an initial investment in property acquisition and site design and construction in FY19, but defers final design and construction until FY20 & FY21. That plan was approved by Council on November 26, 2018.
Beginning in 2012, the City worked with FSU to clean up the old Washington Dr. school site and place this property into FSU ownership. FSU and the FSU Association acquired additional properties in the area and initiated some masterplan efforts of the area. Those plans have not been implemented. This project would result in an enhanced street edge along Washington Dr., Murchison Rd, and Filter Plant Dr. significant enhancing a gateway to FSU along the Murchison corridor.
The Park Bond Subcommittee has discussed this MOU and is scheduled to do so again during their meeting scheduled for December 5, 2018.
Issues/Analysis:
The scope of this partnership has been simplified significantly since last discussed with Council. The scope has been refined such that upon its completion each party will have separate buildings sitting on separate parcels of land. The only ongoing cooperative agreements anticipated will relate to the joint use and maintenance of common infrastructure; that is parking, stormwater control, walkways, landscaping. Completing this scope will, however, require significant early coordination. The proposed MOU addresses this process.
The initial project development will require that the parties work together to accomplish the following:
• Site Control (acquiring all the property necessary)
• Site Design and Permitting
• Property Recombination and Division
• Site Development
Site Control:
The project site is just under 10 acres. As depicted in the attached map of the project area, FSU owns about 30% of the site. The City owns about 20%. That leaves half the site to be acquired. Staffs have worked to equitably divide the task of acquiring the remaining property based on current assessed value (see property table attached). Once all property has been acquired the City will contribute 5.65 acres currently assessed at $59,253 and FSU will contribute 3.66 acres currently assessed at $53,822.
The City clearly has the larger number of parcels to acquire and some of them are expected to have title issues that may require condemnation. The City’s unique capacity and authority to acquire land is the basis for the City taking a larger role in this phase of the project. The City will also perform recombination, division, and zoning work necessary to prepare the site for development.
Cumberland County owns one parcel within the project area. Staff would propose to request that the County transfer this parcel to the City for contribution to the project.
Site Design and Permitting:
FSU will take the lead in this area; hiring and managing the design team. The City will perform its standard regulatory functions during permitting processes and will assign a project liaison to ensure that the design reflects the City’s interests and needs.
Site Development:
FSU will also take the lead in managing the construction contracts necessary to develop the site. FSU will initially fund this work with the City reimbursing costs associated with the City’s project and sharing the cost of developing shared facilities.
Authority Needed:
Should Council support this proposed partnership, staff will not only need the authority to execute the proposed MOU with FSU, but will also need authorization to complete the actions assigned to the City by that agreement. This includes:
• Acquiring the property identified (including condemnation if required),
• Initiating a rezone of the project area, and
• Accepting the property from FSU and recombining the various parcels in preparation for division.
Budget Impact:
Funding identified at this time:
City $5.5 million
FSU $5.5 million
Total $11 million
Of the City’s $5.5 million programed for this project, $100,000 is identified for property acquisition and $2,000,000 for site development in FY19. The attached Capital Project Ordinance 2019-22 appropriates $2,100,000 of anticipated bond proceeds to initiate this project consistent with the proposed MOU.
The current tax rate includes 1.42 cents dedicated to support the debt service and project costs for the parks and recreation bond program.
Options:
- Authorize the City Manager to execute the proposed MOU with FSU and to take actions necessary to fulfill the City’s obligations thereunder and adopt Capital Project Ordinance 2019-22
- Request additional information and defer action on this item (delay could make meeting FSU’s identified timeline more difficult)
- Direct staff to develop an alternative for development of the Senior Center East
Recommended Action:
Staff recommends that Council authorize the City Manager to execute the proposed MOU with FSU for the development of the Senior Center East, to take all actions necessary to implement that agreement, approved resolution authorizing condemnation if necessary, and to adopt Capital Project Ordinance 2019-22 providing initial funding for that project.
Attachments:
FSU Wellness & Senior Center Site Map
Land Contribution Comparison
MOU with FSU and FSU Foundation Regarding Joint Development of Wellness & Senior Center
Capital Project Ordinance 2019-22
Resolution Authorizing Condemnation