Fayetteville City Council has adopted its operating budget for the new fiscal year, which begins July 1. It totals almost $229.7 million, which is a 6.6% increase over the current fiscal year’s budget. The property tax rate remains at 49.95 cents per $100 of assessed valuation.
The FY 2020 budget includes an additional $1.5 million for the parking deck adjacent to the Prince Charles Apartments. The city had already committed $14.8 million to build the five-story garage, which is being constructed by PCH Holdings, the firm that is developing the property adjacent to Segra Stadium. It is a public facility that has been leased in part to PCH to provide parking for the apartment building and two high-rise structures.
The developer plans to build a five-story Hyatt Place Hotel and a seven-story office building atop the garage. Jordan Jones, project manager of PCH, has said previously that construction costs have increased since the financial estimates were made. He noted the original estimate was a best guess arrived at before the projects had been fully conceived.
Council members noted that the massive parking garage is literally the foundation for two buildings that will be built on top of it. The five-story parking deck is the foundation for what will become a 12-story structure, which will make it the tallest structure in downtown.
That complex is part of a larger economic development undertaking of investments worth more than $100 million, including the $40 million minor league baseball stadium and 59 one- and twobedroom apartments in the Gathering at the Prince Charles.
PCH Holdings also agreed to purchase the Festival Park Plaza office building from the city. Mayor Mitch Colvin noted that the combined projects are expected to produce more than 1,000 jobs and contribute a combined $126 million to the local economy.
Developers have pledged to pay property taxes to the city on $45 million of tax value — even if the complex appraises for less. Colvin said he has been told the buildings should be completed in 18 months.