North Carolina Construction News staff writer
The Fayetteville City Council voted 8-1 Monday night to hire a new developer to build a hotel and apartment tower atop the Hay Street Parking Garage, a project started in 2016.
The vote followed a public hearing on an amended and restated downtown development agreement between the city and Fay Hay Master Venture LLC. Council members said the project aims to revitalize the downtown core, complete the mixed-use vision, and support the existing city-owned parking garage.
The Lansing Melbourne Group of Fort Lauderdale, Florida, through its subsidiary Fay Hay Master Venture LLC, plans to invest at least $70 million in the project, City Manager Doug Hewett told council members. The towers will include a 124-unit, seven-story apartment building and a five-story, 119-room hotel.
Mayor Mitch Colvin said the project represents a milestone for downtown development. “We’ve got to give this new developer a fair shake,” he said. “This is certainly a long-anticipated resolution that could potentially end this chapter in our city’s downtown development.
“I think it’s great that Mr. Flotz chose to invest in our community.”
Construction is scheduled to begin in June 2026 and conclude by May 2028.
The new developer will pick up where previous developers fell short. Hay Street Development Pad LLC and PCH Development Co. LLC was hired to build a tower atop the city-owned parking deck at 466 Hay St., part of Fayetteville’s Project Home Run redevelopment of the western end of downtown, which began in 2016.
While the project has delivered Segra Stadium, the renovated Prince Charles Hotel apartments, and the $17.8 million Hay Street Parking Garage, the top-of-deck tower never materialized.
Fayetteville sued the former developers in May 2024 for breach of contract. As Lansing Melbourne Group negotiations advanced, the city dropped the lawsuit in September but retains the right to refile until September 2026 if the new plans fail.
The new agreement includes a loan of up to $5.7 million to the developer, covering costs to complete the top of the parking deck, install elevators, and add pathways around the development, according to Howard Rhodes, the city’s attorney on the project.
Peter Flotz, CEO of Lansing Melbourne Group, will oversee the project’s execution, which city leaders hope will finally deliver the centerpiece of Project Home Run’s downtown revitalization.
Council Member Mario Benavente voted against the contract approval, due to concerns about the city’s handling of past contracts.
“There are community members that have grave concern about the potential for Fayetteville to look the other way when it comes to a breach of contract with PCH,” he said during the meeting. “This no vote is really meant to ensure that community members across the city who have concerns know their concerns have been heard.
“Once more putting $5.7 million on the line that could be walked away with without much recourse, especially since we have shown the citizens we will not take recourse necessarily in order to do business.”