Highlights of the Fort Smith Board of Directors Meeting 10/10/23

The Fort Smith Board of Directors meeting held 10-10-23 was led by Vice Mayor Rego in the absence of Mayor McGill. The meeting started with the Board voting unanimously in favor of a zoning change for undeveloped land at 7600 and 7700 Massard to allow for a mixed use multi-family residential and commercial development.

Fort Smith resident Andy Posterick spoke in support of the development. He expressed enthusiasm for mixed use developments and mentioned that mixed use has a higher dollar value per acre and produces more tax revenue than single family residential development.

The Board voted unanimously in favor of two changes to the Unified Development Ordinance that were recommended by the Planning Commission. One change is to allow ductwork, exhaust fans, and utility devices not visible from the street or residential property to be painted to match the building instead of being required to be screened. This was suggested to offer an option other than applying to the Planning Commission for a variance for hard to screen equipment.

The other change is to add data centers as a defined land use and for data centers to be allowed in Industrial Heavy, Industrial Moderate, and ETJ Industrial Moderate zoning areas and to allow data centers to seek permission as a conditional use in Industrial Light zones.

Director Settle asked what triggered the desire to make these changes. Planning Director Rice answered that variances are regularly sought for the duct work and granted because the equipment is often “hard to screen and would look worse if you did." She said that the data center change was inspired by conversations that have occurred about data centers involved in cryptocurrency that “haven’t come to fruition”.

Director George Catsavis asked which is cheaper, painting or screening. Rice responded that painting is cheaper. Director George Catsavis asked about feedback received from developers regarding the ductwork change. Rice said that they were “all for it” and mentioned that it speeds up the process for them.

The Board voted unanimously without discussion to renew the collection of the property tax at the same rate. The City’s share of the tax collected countywide is set at the maximum rate allowed by State law except for the portion going to the library. The City’s portion of the tax will continue to be 5 mils to the General Fund, 1 mil to the library, 1 mil to the Fire Department retirement and pension, and 1 mil to the Police Department retirement and pension.

The Board voted unanimously to purchase 113 acres of land for a bike park and flood prevention retention pond from ACME Brick for a price of $2,880,000.

Director George Catsavis asked about the cost to develop the property after it is purchased. Deputy Administrator Dingman answered that they have started working on the storm detention pond designs and they are estimated to cost $6 million but that the plans for the parks components are not far enough along for him to have an estimate yet. Director Catsavis expressed concern about the price saying “We need to be cautious. That’s a bunch of money.”

Director Martin questioned the use of funds from the general fund instead of the Parks sales tax fund. He called the expense from the general fund “my only concern” and called it a “pretty big hit on the general fund.”

Director Settle encouraged people who expressed opposition to the Planters Road extension because it might disturb trails to notice the large investment the bike park would be in a trail and bicycle amenity.

Director Christina Catsavis mentioned that Administration never made the Board aware that the City was in a bidding war with a private company for the property. The Board was told that it had sat for years and was presented with the possibility that it could even be donated to the City because there was no interest in anyone purchasing it for private development. She expressed a desire for the Board to be informed in the future if there is competition from other buyers for a property.

Director Christina Catsavis called the project “necessary” and said it is “gonna do wonders for mid-town.”

Director Rego called the project an “absolutely fantastic investment.”

Director Morton also expressed his support for the project. He mentioned that the cost to entirely fix the flooding on the North side is estimated at $150 million and that the City does not have the money for that and “will probably never have” it. He called it “absolutely brilliant” that the “20-40 percent that floods those homes will be held back by those ponds”. He said “The bike trail is a bonus” and also praised the project “removing an eyesore” caused by the pit area of the property.

Director Good said “I don’t think anyone on the Board takes it lightly how we we spend taxpayer money.” He agreed with the project, but encouraged the Board to not forget about smaller expense projects on the North side including those to address blight and flooding. He mentioned that grants and partnerships may help significantly in the funding of the project’s park amenities.

Director George Catsavis expressed concern for the spending out of concern for a possible economic downturn. He asked Finance Director Richards about the economic forecast for next year. Richards said that there is a possible recession predicted for the later part of 2024. He added that economic forecasts are often less accurate for their impact on Fort Smith because historically Fort Smith doesn’t experience the highs and lows as much as much of the nation and the state. Director Morton agreed with Richards that “we have a very diverse economy here in Fort Smith and that helps us weather the ups and downs better than other places.” He said, mentioning the F-35 project coming soon and having the “biggest general fund surplus that there has ever been in the history of Fort Smith.”, “We’re in the best possible position to take on something like this”.

Director Morton encouraged the Board to be aware of ongoing costs of maintaining all the parks the City has.

Director Martin said “I don’t think anybody likes to spend a lot of money.” but he expressed support for the drainage aspect of the project saying that it “will affect a lot of people”.

The Board voted unanimously to purchase 10.6 acres of land and the building that was formerly Luby Equipment Services at 5601 and 5715 Wheeler Avenue to be turned into a maintenance facility for the Fire Department. None of the current Fire Department facilities are adequate for the repair of modern sized fire trucks. The Fire Department had looked into building a new maintenance facility, but the cost for the building they would need would be $2 million before even including the purchase of the land. The building on Wheeler already has tall bay doors and a tall ceiling that would be ideal for the maintenance of fire trucks. Fire Division Chief Millard said that in addition to allowing trucks to be repaired indoors, the new building will speed up turn around time for truck repairs, will ease congestion for equipment at Station 5, will have room to move administrative areas to reduce crowding at Station 1, and will have a space for driver training. The purchase will total $1,600,000. There is potential for 3 acres of the vacant part of the lot to be sold for an estimated $120,000-$150,000 or to use it as a site on which to build the Sebastian County dispatch center.

Director Morton asked if money will be needed to modify the building. Millard answered that it will not be needed, that the building is “turn key” and “ready to roll tomorrow.” Director Martin asked if there would need to be concrete poured or paving done to the area for driver training. Millard answered that it would not be needed because the area is already gravel and “functional as is.” Director Settle asked if there would need to additional fencing. Millard answered that there would not because the area that needs secured is already fenced and the unfenced area does not need to be fenced.

Director Rego called the purchase “fantastic”.

The Board voted unanimously on insurance providers for City employees. The Board voted for renewal of coverage with Mutual of Omaha for death and dismemberment and disability coverage and renewal of dental coverage with Delta Dental. The Board voted for switching health insurance excess coverage from AETNA to Evolution Risk and switching voluntary accident and voluntary life insurance coverage from Sun Life to Mutual of Omaha.

Director Morton asked what would happen if a claim occurred initially under the coverage of the previous company and then went over the stop loss amount under the new company. Chief Human Resources Officer Lolli answered that the run-in period would still be maintained so the new company would pick up the claim.

In the Official’s Forum section of the meeting, Director George Catsavis discussed the situation with the Deer Trails golf course. He expressed his frustration with the County. He said he did not want to partner with the County. He said that the County wants to shut down the golf course.

Director Martin said “I think we need to just be cautious about the words that we speak out in public.” and said “I think the County are good” and “I think we can come to a good conclusion”. Director Rego agreed with Director Martin saying the Board should “conduct in a professional way and leave room for negotiation” and “respect our partners in government…even when we are passionate about something.”

Director Morton said that the City are “better off trying to find common ground than doing something that makes them more adversarial.” He praised the way the relationship with the County has worked on Parrot Island water park. He said that the FCRA is not ever going to be willing to do anything with the City regarding the course except to sell the land for cash. He suggested that the FCRA should donate the land and that the County and City have a joint operating agreement similar to Parrot Island for the golf course. Director Settle said that he was “not for that.” Director Martin agreed with Settle “I’m with you on not partnering with them.”

Director Rego reminded that the City controls the zoning for the property. It is currently zoned only for outdoor recreation.

Director Christina Catsavis said she was not in favor of partnering with the County to run the course. But she advocated for cooperation between the County and City saying “if County and City are at war, the FCRA wins.” She said “the clearest course of action we have” is getting the FCRA trust dissolved at the State level and that cooperation from the County would be needed for that. Director Good agreed with Director Christina Catsavis.

Director Good mentioned that the Police department’s new Adventures of Pawfficer Fuzz podcast has been released and is available from the city website as well as Spotify and Apple Podcasts.