Council authorizes amended downtown development agreement to finish towers above Hay Street parking deck with 8–1 vote

The Fayetteville City Council on Nov. 10 authorized the city manager to execute an amended and restated Downtown Development Agreement (DDA) with Fay Hay Master Venture LLC to complete mixed-use towers above the existing Hay Street parking garage and to finalize ancillary agreements necessary to implement the project.

City Manager Dr. Hewitt summarized the project history and terms: the development concept dates to the Project Home Run effort beginning in 2016 and originally involved Prince Charles Holdings (PCH). Under the amended DDA staff said the city’s financial commitment would be a loan of up to $5,700,000 for public improvements associated with completing the top of the parking deck, installing multiple elevators to ensure accessibility, and funding public pathways around the development. The developer’s package would include 124 residential units and a 119-key hotel; the agreement preserves a minimum assessed tax-value guarantee of $45,000,000 and sets an aggressive schedule with a budget set by January 2026 and construction targeted to start in June 2026 with substantial completion in May 2028.

Why it matters: The project aims to activate underused downtown blocks, add housing and hotel capacity, expand the tax base and create construction and ongoing local jobs. At the same time, councilmembers and downtown stakeholders raised concerns about construction impacts on small businesses, long-term enforceability of developer commitments and affordable-housing outcomes.

Public speakers asked for stronger downtown engagement and affordability measures. John Malzone, president of the Downtown Alliance, asked for formal inclusion of the alliance in ongoing planning conversations so business owners can plan for construction impacts. "We need transparency," Malzone said, asking for regular updates on construction schedules to avoid sudden roadblocks that inhibit deliveries and patronage downtown.

Bobby Burgess urged council to require income-restricted units in the project, noting local wage levels and citing models that tier units by area median income. "What I'm here to urge you guys to consider as this project moves forward is having income restricted units," Burgess said, arguing that market-rate luxury units risk excluding long-term downtown residents and residents working local jobs.

Council members examined contract details including ownership of the deck, air-rights transfers, bonding to secure public improvements and litigation windows. Outside counsel and staff clarified that the city will retain ownership of the parking deck; the new developer will acquire the prior developer’s real-estate interests and the air rights needed to build upward through a separate sale. City staff said bonding remains a contemplated option to ensure the city’s $5.7M commitment would fund deck completion and elevators even if the development falters.

Councilmember Green moved to authorize the city manager to execute the amended and restated DDA subject to necessary amendments; Councilmember Davis seconded. After discussion the motion passed by a roll-call recorded in the transcript as 8–1, with Councilmember Benavente casting the lone no vote. Benavente said he opposed the authorization because he feared the city would be reluctant to pursue accountability or damages related to a prior contract breach by Prince Charles Holdings and because the city would be placing $5.7 million “on the line.”

Following the vote the council approved a separate, unanimous motion directing staff to formalize regular meetings among the developer, city staff and downtown stakeholder groups — including the Downtown Alliance and Cool Springs Downtown District — so merchants and property owners receive ongoing construction schedules and engagement throughout implementation.

The amended and restated DDA and ancillary documents will proceed to finalization by staff and outside counsel; staff indicated the development budget will be set by January 2026 with financial commitments in place by February 2026 and financial closing in May 2026.