The City of Fayetteville is courting developers for what officials are calling one of downtown’s most significant redevelopment opportunities: a 9.3‑acre site that could anchor the next phase of growth of the city’s core.
The mostly undeveloped, city-owned site sits at the intersection of Blount and Gillespie streets just south of downtown. It includes the historic E.E. Smith House.
About 10 prospective applicants attended a pre‑bid conference on Friday for the city’s newly released Request for Qualifications (RFQ). City staff and consultants outlined their vision for a mixed‑use district with housing, retail, public green space, and cultural amenities.
The meeting marked the first major step in a two‑stage process to finally redevelop a site the city has spent more than a decade assembling. Consultants say the project could reshape the southern edge of downtown.
A Pitch Built on Growth, Proximity and Military Spending Power
Derek McArthur, Fayetteville’s economic development manager, opened Friday’s session by making a case for Fayetteville’s market strength, urging developers not to underestimate the city’s buying power.
“This is more than a development opportunity,” McArthur told attendees. “It is an opportunity to expand Fayetteville in its next chapter of growth, investment, connectivity, and long‑term economic development.”
McArthur described Fayetteville as a growing regional hub with untapped buying power, particularly because of its connection to Fort Bragg , which is one of the nation’s largest military installations.
“One of the things I challenge everybody to take a look at when we’re talking about [income] is our military connectivity,” McArthur said.
He cited untaxed military retirement checks, basic housing allowance, and Department of Veterans Affairs disability payments as examples.
“When you look at that median household income, those are some things you’ve got to look better and beyond to see the scope and the disposable income that’s located here in the City of Fayetteville,” McArthur said.
Long‑Planned Redevelopment Finally Moves Forward
Friday’s pitch by the city builds on direction the City Council gave in January. Councilmembers unanimously accepted a consultant’s report and instructed staff to rezone, recombine, and prepare the land for private development.
That work session set the stage for the RFQ now underway, including the decision to pursue a two‑step solicitation.
The city has since rezoned the entire 9.3‑acre site to a single mixed‑use district, eliminated minimum parking requirements, and raised allowable building heights to 75 feet. The moves are intended to make the property shovel‑ready and reduce early hurdles for developers.
The RFQ is the latest chapter in a redevelopment effort nearly two decades in the making. The city’s control of the Blount and Gillespie site began around 2008, when Fayetteville used federal funding to acquire 41 individual parcels just south of downtown. Over time, the city assembled roughly 8.5 to 9 acres, envisioning the land as a future catalyst for reinvestment.
By 2018, the concept shifted toward a proposed “Centre City Business Park,” an idea aimed at bringing jobs and activity to Gillespie Street. But that plan stalled as the coronavirus pandemic, rising construction costs, and shifting market conditions made office‑focused development increasingly difficult.
The site itself sits less than half a mile from Hay Street, the gateway into downtown, and is surrounded by low‑density housing, vacant retail, and industrial parcels.
The property’s most prominent feature—the E.E. Smith House, built in 1902 and listed on the National Register of Historic Places—has remained a constant. The city renovated the structure and now programs it through Fayetteville-Cumberland Parks & Recreation.
Consultants and staff stressed to the council in January that the house must stay exactly where it is.
What Consultants Told City Council in January
In 2025, the city hired HR&A Advisors and design firm MKSK to revisit the site and test what kinds of development the market could realistically support. Their findings, presented to council on January 5, shaped every requirement now embedded in the RFQ.
HR&A’s market scan showed steady demand for housing and relatively low vacancy, but a shortage of new units near downtown.
“Downtown Fayetteville has experienced kind of a slow population growth since 2010… in part due to the lack of new homes being built downtown,” HR&A senior analyst Austin Amandolia told council on January 5.
Vacancy has been under 5%, and since 2015, the city has absorbed roughly 240 new apartment units per year, he said.
Amandolia described absorption as “just people moving into apartments,” explaining that this “has demonstrated the potential for this site to spark a new move towards downtown.” He added that “people are willing to pay more to live in downtown Fayetteville, but there needs to be more housing opportunities there for them to do so.”
By contrast, the study found that new office and hotel projects remain challenging in the current market, despite reasonably healthy office occupancy in Fayetteville compared to larger cities. Any significant new office space would likely require a very targeted leasing strategy.
On the retail side, HR&A’s analysis and community outreach suggested downtown has plenty of restaurants and clothing stores, but lacks “experiential” offerings.
Resident surveys cited a desire for jazz bars, art galleries, live music, games and other activities that provide everyday reasons—not just special events—to visit downtown.
Working with MKSK, HR&A developed three conceptual layouts for the site. All three:
- Concentrated the tallest buildings at the Blount & Gillespie corner
- Preserved the E.E. Smith House
- Included a public park or open space
- Topped out at about four stories, with one concept including a screened internal parking deck
But only two of the concepts were financially feasible—and even those required public participation.
Consultants told the council that more ambitious versions—those with larger parks, cultural space, and structured parking—would not be financially viable for a private developer without a targeted tax‑increment grant (TIG).
Chris Cauley, Fayetteville’s economic and community development director, explained the city’s TIG policy as a pay‑as‑you‑grow tool. A TIG would allow the city to rebate a portion of the new property tax revenue generated by the project back to the developer—but only after the buildings are complete and on the tax rolls.
“We don’t pay a dime unless something gets built and pays property taxes,” he said.
Amandolia told council that the math works in the city’s favor. “The amount of tax benefit that the city will gain from this property far exceeds the amount of revenue it would need to provide through a TIG to support those public benefits,” he said.
The council accepted the findings at its January 5 meeting and directed staff to explore a TIG as part of the future solicitation.
Amandolia reiterated during the meeting on Friday that the city is open to partnerships where public support helps deliver community priorities such as open space and cultural amenities. He did not say whether the city has committed to a TIG.
How the RFQ Process Will Unfold
The RFQ is the first step in a competitive, two‑stage process:
- RFQ responses due July 1.
- Shortlist announced late summer or early fall.
- Shortlisted teams invited to submit full proposals in the RFP stage.
Only firms that submit qualifications now will be eligible to advance.
McArthur closed Friday’s meeting by urging developers to look beyond the RFQ document and study Fayetteville’s broader market.
“We think it’s a major intact market that can be a bright spot and a great partnership that we can put together,” he said.
Government reporter Rachel Heimann Mercader can be reached at rheimann@cityviewnc.com or 910-988-8045.
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