Fayetteville council sees draft of contract for new parking deck downtown

FAYETTEVILLE -- City administrators hope to have a signed contract for a new parking deck downtown ready for the City Council to consider in two weeks.

The council took up the contract for the first time Tuesday during a meeting held online on Zoom. The agreement lays out terms for the city to acquire and use land at the northwest corner of Dickson Street and West Avenue for a parking deck. The deck is planned to replace spaces lost once the civic plaza of the cultural arts corridor is built at what is now a city parking lot west of the Walton Arts Center.

Voters approved a $31.6 million bond issue last year to build an arts corridor downtown. The dollar amount for construction includes $10 million for a new parking deck.

City Attorney Kit Williams asked the council to hold off on making a decision on the contract until Dec. 15. He said he had received feedback from an attorney representing landowner Greg House and House's business partner, Ted Belden, and wanted more time to work on the language. Williams said he hoped to have the document signed by House, Belden and Bank of Fayetteville, which has its train bank on the site, by the council's next meeting.

Belden told the council House asked him to be involved in the project in spring. Belden owns several properties near the site, including The Dickson, which has a 260-space parking deck. He said he believed the new deck, with commercial spaces on the ground floor, will serve as a catalyst for development in the city. House also has expressed plans to build a hotel at the southern end of the site.

As written, the contract would have the city pay House and potentially Belden $250,000 for a quarter of an acre at the site to build the deck. Bank of Fayetteville would get $100,000.

The city would own the parking deck building, using the $10 million in bond money for its construction. However, House and Belden would have most of the ground floor to use as commercial space in a condominium-type arrangement. House and Belden would pay for the work to build the 14,000 square feet in commercial space. The city would have a police substation on the ground floor.

The second, third, fourth and fifth floors of the deck would have 330 parking spaces to replace the 290 spaces at the Walton Arts Center lot. House and Belden would retain the right to build a sixth and seventh floor on top of the deck, but would pay for the work.

Additionally, House and Belden would agree to preserve the historic depot building at the site with nothing built above it. No major modifications would be done to the freight building housing Arsaga's for seven years, but House and Belden could build a roof over it extending from the deck.

The city would retain for seven years an option to purchase the space between the depot and freight buildings and the deck to use as a transit hub. A bus stop also would be included at the site.

Additionally, the city would lease-to-own a fifth of an acre at the northern end of the civic space site, near Dickson Street, to House and Belden to build a future commercial building. The council saw designs of a four-story building, referred to as Fayetteville Food Hall, from architect Rob Sharp in June.

House and Belden could pay the city $263,000 over 36 months to lease the land to build the food hall. Or, if the two agree to build the food hall building to the city's specifications and build it within a year of the civic plaza being completed, they could forgo rent payments and own the land.

No one spoke during public comment. Council Member Teresa Turk said she hoped residents would provide comments at the next meeting Dec. 15.

Construction of the deck is planned to start early next year and last about a year. Construction of the civic space would start after that, in 2022.