Fayetteville moving ahead on Murchison Road, and plans call for a new grocery store

The cost of reinvesting in the Murchison Road corridor to provide affordable housing could mean uprooting some existing residents along with improvements that could include a grocery store, Fayetteville City Council members were told Wednesday night.

Fayetteville is entering into another phase of the Choice Neighborhoods program, with a grant application due by Feb. 13, said Chris Cauley, director of economic and community development.

The program is through the U.S. Department of Housing and Urban Development and leverages public and private dollars to transform struggling neighborhoods into “choice neighborhoods” with public or HUD-assisted housing.

Pending a legal review, council members unanimously approved entering into agreements with partners during Tuesday night’s meeting and also authorized Mayor Mitch Colvin to sign a letter supporting the grant application.

Cauley said the Choice Neighborhoods program is about housing, the people and the neighborhoods that officials want to revitalize.

“We have a strong commitment to diversity and inclusion and working in this community,” he said.

Here’s a look at the main grant and other grants that are working in conjunction to achieve the city’s goal of having affordable housing in Fayetteville.

The grant

In 2020, Fayetteville was one of 11 cities awarded a pre-planning grant, Cauley said.

Since then, city officials have met with nonprofits, faith-based organizations, Fayetteville State University, the North Carolina Department of Transportation and other stakeholders to determine what was wanted in the community.

The latest grant application seeks $27 million for projects that were identified during meetings.

Access to healthy foods

In addition to the housing aspect, Cauley said officials are looking to use $2 million from the federal grant and $1 million from the Community Development Block Grant to bring a neighborhood-focused grocery store to the area.

There is a $3 million commitment from a community development institution to invest in the grocery store, he said.

A market study conducted with the 2020 planning grant found that a grocery store is feasible for the community and would serve residents in surrounding neighborhoods along with Fayetteville State University students, Cauley said.

Housing plans

Of the $27 million grant, $20 million will go toward an Elliot Circle development, demolition of old properties and homeownership opportunities; $4 million to provide support services; and $3 million will be used for other resources.

Cauley said that during the planning process, Elliot Circle stood out as “the heart” of the Murchison Road neighborhoods. It is close to Mary McDonald Park, across the street from Smith Recreation Center and E.E. Smith High School and near Fayetteville State University.

Currently, Elliot Properties spans about 16.5 acres with 110 units.

Cauley said less than half of the units are occupied, and low rent has made financing upkeep of the property unsustainable over the years.

City officials worked with the Fayetteville Metropolitan Housing Authority during the planning grant, and identified Elliot Properties' needs. Plans call for 163 multi-family units and 44 units for senior residents in a separate three-story building with elevators.

The concept also incorporates greenways and trails and adds amenities like a community room and library.

The city will loan $1 million to the Elliot Circle project, which Cauley said would be paid back for investment in future housing priorities in the city.

The plan also calls for the demolition of 60 Murchison Townhouse units owned by the Fayetteville Metropolitan Housing Authority on Rosemary Street.

Cauley said the Housing Authority has plans to build a modern, privately owned, mixed-affordable housing development that would be funded separately from the grant.

Part of the grant would provide homeownership opportunities near Elliot Circle, with the city investing $3 million from its housing opportunity bond for 25 homes.

People who qualify to live in the homes based on moderate to middle incomes would pay 30% of their income toward a mortgage.

Cauley calculated that the city would receive about $750,000 in down payments that he said could go toward reinvesting in other homes in the city.

Timeline and relocating residents

The city is expected to know by July whether it is awarded the grant, Cauley said.

If approved, officials would start working with Elliot Circle residents for relocation.

About 70 families currently live at the complex.

Councilwoman Courtney Banks-McLaughlin said she wants to ensure residents aren’t displaced.

Cauley said the Uniform Relocation Act requires affected residents to have HUD-approved relocation plans, which the Fayetteville Housing Authority will assist with, and they will move to a place they can afford.

City officials met with Elliot Circle Properties residents last week and assured them that if the grant is approved, they will have first choice on the new units, he said.

Pending funding, the Choice Neighborhood projects could be completed by July 2029.

Other investments in people

In total, Cauley said that about $67 million in public and private money would go toward the project.

He said that in addition to the city investing $1 million toward Elliot Circle and $3 million for homes, another $4.5 million from American Rescue Plan funds could go to enhancing the area and helping residents by providing economic stability, self-sufficiency, mental and physical health and preparing kids to enter the school system and to graduate on time.

Programs put into place for the grant would last a minimum of eight years, he said.

Branding

Cauley said the Murchison Road area isn’t just one neighborhood.

Broadell, Seabrook, Echols Park and College Heights neighborhoods surround the area, which is why, Cauley said, he foresees having street signs with customized toppers "to identify and also celebrate the history of those neighborhoods.”

Lifestyles, health and fitness

Cauley said a trail that would start at McDonald Park near Elliot Circle is being planned for redevelopment to connect Elliot Circle to the park and trail system.

Fayetteville-Cumberland Parks and Recreation is applying for a $2.1 million grant through the Fayetteville Area Metropolitan Planning Organization, and $1 million from the Choice Neighborhoods grant could go toward the project.

Partnerships

Cauley said the city is the lead applicant for the grant and will manage timelines and funds. Fayetteville Metropolitan Housing Authority is a co-applicant along with development company JBS Inc.

The city is also partnering with national nonprofit Urban Strategies Inc., which is a community development financial institution that has worked with 19 other Community Choice grant projects across the nation, he said.

Cumberland County Schools has agreed to work under Urban Strategies to help develop strategies to help residents with education goals.

Other points

Cauley said the North Carolina Department of Transportation has funded a project to redevelop the upper portion of Murchison Road that is in the land acquisition phase.

The city has had a corridor revitalization program to help businesses get matching grants to improve their parking lots, landscaping and facades, he said.

Officials are also looking for funds to help residents in single-family homes in the area clean up properties by providing loans for landlords and grants for homeowners, Cauley said.

City input

Councilman D.J. Haire, whose district is in the area, said he is glad to see plans for connecting the neighborhood to trails and a grocery store.

“I have been watching this and been a drum major in moving forward for a number of years,” Haire said. “I do like this program."

Councilman Mario Benavente said he would like to see how the remaining housing opportunity bond funds will be leveraged in the future because residents on the other half of Murchison Road, past Country Club Drive, have asked what will be done to help their area.

Cauley said the housing opportunity bond is intended to be spent across the area and not one specific area.

He said there is a program also in place that offers down payment assistance for moderate and middle-income families.

Colvin said he’s glad to see the partnerships and support for the project.

“We’re going to be very intentional about not gentrifying (the area) and make sure that the people grow with the investment,” Colvin said.

Staff writer Rachael Riley can be reached at rriley@fayobserver.com or 910-486-3528.

This article originally appeared on The Fayetteville Observer: How Fayetteville plans to invest in Murchison Road neighborhoods