Highlights of the Fort Smith Board of Directors Meeting 10/25/22

The Fort Smith Board of Directors study session meeting held 10-25-22 with Director Morton absent began with Director of Building Services Jimmie Deer giving a presentation on the building permit process. He walked the Board through how it works including the application process and application review process and the time tables typically involved. Deer said that his department averages 19 permits per day. This year so far they’ve processed 3725 with 3200 of those being residential permits. Of residential permits he said “most of the time, you’re going to get it.”.

Director Settle inquired about permits that are more complicated to acquire that he has received complaints about. Deer responded that most of those problems stem from what the applicants send him saying “a lot of what Directors hear about is folks who submit junk”. Settle responded “I can tell you what I’m talking about is not junk”.

Director Rego asked if the e-filing process that was started in response to the pandemic will continue. Deer said it will.

Deer said the time it takes to get a building permit for commercial use is typically 10-14 days. Director Martin asked if the Cityview software system that is coming soon will make the process faster. Administrator Geffken said that it would. Director Catsavis asked if a commercial building project was going to cost $100,000 what the estimated building permit fees would be. Deer answered with an estimate of $800-$1100 and added that permit fees in NWA are 4 times that. He stated that there has been no increase in building permit fees here since 1999. Director Catsavis asked where the money from the fees goes. Geffken answered that it goes into the general fund where it used to fund the Building Department. Still, the department does not fund itself fully from the fees. Director Martin said that some places in NWA funds parks with part of their fees. Director Rego asked for clarification that here the fees are only going toward paying for the Building Services Department and not pay for anything else. Deer assured that they were.

Mayor McGill said that the comments he receives about the building permit process are positive and very supportive.

Development Services Director Maggie Rice gave a presentation on the business license process. She said that so far in 2022, 3856 business license renewals have been sent out and 405 new business licenses have been issued with June being the busiest month so far.

She stated that most business license fees are typically $100 dollars and require annual renewal ($100) with food truck licenses costing $150 and temporary licenses good for 90 days costing $250. Director Rego asked why the temporary licenses cost more than regular ones. Rice said that the requirements on that are set to mirror a 1983 Arkansas State Statute.

Rice mentioned that the staff is happy to give prospective business owners before they lease or buy a property a physical on-site walk through of their potential location with a planner and a fire marshal to discuss what would need attention for inspection and what they’ll need to do to be permitted . Building Services Director Deer urged prospective business owners to call Planning before they invest in the property to be sure that the property is zoned correctly for the use they have in mind.

Director Rego sparked discussion about whether there is enough staff available to inspect properties and issue licenses in a timely and efficient way as the city is experiencing so much growth. Fire Battalion Chief Clark mentioned the additional new Fire Marshall being added this year will help with that. Geffken said that our license process time is “underneath most every other large city in the state of Arkansas.” and mentioned a recent interaction with a new business whose owners from California were impressed by the 14 days it takes here versus the year that they would expect in California. Rice expressed excitement about how much faster and easier the process will be both for staff and for customers when the new Cityview software system is implemented. She said it “will make the self-service customer experience wonderful” with allowing customers to apply, pay, and check in on where they are in the process all online.

Director Settle asked what it takes for a business license to get pulled. Rice answered that there are requirements in the code and that the ultimate decision on that is made by the City Administrator. Geffken mentioned a time a couple of years ago that a bar on 10th street had theirs revoked in response to frequent issues requiring police involvement.

Director Rego asked if the $100 fee goes to the general fund. Catsavis chimed in that it is supposed to be going to the Police Department. Geffken clarified that while the money itself goes into the general fund, it has been provided to the Police Department. It has provided around $350,000 on average per year to the Police.

Geffken said that in a recent discussion with the Arkansas City Managers Association he learned that the Department of Finance and Administration can provide a list of businesses from their records that could be matched to the business license list for the City.

Director Catsavis asked if a hot cocoa stand run by children would need a business license. Rice answered that no, lemonade stands, cocoa stands, etc. of that type are specifically exempted here.

The Executive Director of the local United Way , Shea Foldvary, started the discussion about options for advising residents of assistance available from the City and other agencies and organizations. He said that need is up post-pandemic. He mentioned the United Way’s Resource Guide that has an extensive list of local providers for help with housing, food, utilities, health care, and other needs. He also mentioned the 211 hotline, calling it a “vital, vital resource”. The hotline allows people to just dial 211 and be connected with a live representative 24-7 every day of the year who can help them find resources to help with their needs. He thanked the city for their partnership in providing the 15 billboards around town promoting 211. He also mentioned the work that 100 Families is doing to connect families with the resources they need to thrive.

Director Rego mentioned Project Concern , the City program that offers discounts on City utility bills. He asked Geffken to send the Board the details and some easily sharable information on the program to help them inform other people and spread the word about it. Deputy Administrator Dingman brought up that at the suggestion of Transit Director Savage until the advertising space on the new large buses is sold to paying advertisers it will be used to advertise Project Concern.

Administrator Geffken mentioned that there is a federal program for people facing water shut offs. He will be sending info on it to the Directors.

Fort Smith Housing Authority Executive Director Mitch Minnick presented an update on the Housing Authority.

In 2021, the FSHA rental assistance program (often referred to as “section 8”), where vouchers are issued to participants who then can take them to any landlord they choose who will accept the vouchers, served 1500 families in Sebastian County and paid $6.8 million in rental assistance to landlords. The average rent payment for participants in the program is $211.73 and the average assistance payment is $358.89. Top challenges faced by the program are the length of the waitlist, declining landlord participation, rapidly rising rents, and limited availability of suitable units. Reasons Minnick cited for the loss of landlords willing to accept the vouchers included problems with the pandemic moratorium on evictions and high demand so that they can easily get a high market rate rent so the guaranteed payments are not as big a draw. Increasing real estate rates are resulting in investors purchasing property that might have been on the program previously. There is currently enough budget available in the program to serve more people than there are available properties.

The FSHA owned rental housing program currently includes 482 units in 6 developments. They are about to break ground on Electric Park, a new development off Midland near the fair grounds where a trailer park used to be. That apartment complex development will have 56 new units that should be ready by 2023. More cottage style homes and 10-12 units in duplexes will be built in 2024. In 2025, a 50 unit townhouse style development will be built where the Red Barn Steakhouse used to be.

The home ownership new construction project serves 4-6 families per year. Top challenges faced by the program are availability and cost of land, limited funding, buyer credit readiness, and challenges in the current labor and construction market.

The site of the former Bailey Hill Reservoir that was given to the FSHA by the City of Fort Smith will be home to 33 lots on which new houses will be constructed and sold over the 3-7 years following the site being ready. At least 23 of the lots will be reserved for home buyers at or below 80% of the area median income. This project is estimated to cost $2.5 million.

Director Dawson asked if there are any vacancies currently. Minnick responded that they are 94-95% occupied but do have some vacancies at some properties, but that there is a waiting list on most of the properties.

Director Settle asked if the FSHA has considered building their new developments with the buildings closer together to be able to provide more housing on the same amount of land to meet the high demand. Minnick responded that they definitely have and that their upcoming developments at Electric Park and Red Barn are not spread out like North Pointe and Clayton Heights are. Director Good praised the appearance of North Pointe and Clayton Heights calling them well-maintained and a “whole new definition and look to public housing”. He liked that they do have a bigger property, especially for families with kids that would like a yard. Director Settle suggested that maybe the new developments built with a more dense design could be marketed to single individuals and the bigger space ones could be marketed toward families.

Mayor McGill asked why the majority of new FSHA development is built on the North side of town. Minnick answered that it is caused by the availability of affordable land.