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Ordinance Reappropriating $1.7 Million in the Building Improvements Capital Projects Fund to Create a $1.25 Million Reserve for Leased Facilities Maintenance and Improvements and to Pay $450,000 in Broker Commissions
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Department: |
Finance |
Meeting Date: |
4/7/2026 |
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Contact Name: |
Michael Pirsch |
Public Hearing: |
No |
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Contact Phone: |
910-342-2771 |
Advertising Date/Advertised By: |
N/A |
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Attachments: |
Attachment #1: Ordinance |
PURPOSE:
Attached for your consideration is an ordinance reappropriating $1.7 million currently in the Building Improvements Capital Projects Fund to create a $1.25 million reserve for leased facility improvements and maintenance, and to transfer $450,000 back to the General Fund for the purpose of paying contract obligations to Cape Fear Commercial resulting from commissions from Skyline Center leases.
BACKGROUND:
The original appropriation was intended to fund improvements to the fifth floor of the City-owned office building located at 115 N. 3rd Street, as well as the top floor of the City-owned parking deck located at 114 N. 2nd Street, in order to fulfill obligations required as part of a proposed lease agreement with the United States General Services Administration (“GSA”). Initial cost estimates for these improvements were approximately $1.8 million, which Council authorized via ordinance on August 20, 2024. The City has since decided not to proceed with the lease agreement with the GSA; therefore, the associated improvements are no longer required. $100,000 of the original appropriation will remain, as it is still needed for repairs to the Second Street Parking Deck and was originally appropriated from the Parking Fund.
Because the original use of the funds is no longer necessary, reappropriating these funds will allow the City to realign previously allocated resources, and to create a reserve for use on leased facilities maintenance and improvements, as well as transferring funds back to the General Fund to fund broker commissions already incurred with respect to executed leases.
BUDGET IMPACT:
$450,000 is being transferred back to the General Fund to pay for broker commissions to Cape Fear Commercial, and $1.25 million is being reallocated in the Building Improvements Capital Project Fund to create a reserve for leased facilities maintenance and improvements.
RECOMMENDATION / ACTION REQUESTED:
Passage of the attached ordinance is recommended.