Highlights of the Fort Smith Board of Directors Meeting 4/2/24

The Fort Smith Board of Directors meeting held 4-2-24 with Director Good attending remotely began with a unanimous vote in favor of annexation requested by Liberty Ridge RRF Properties of 23.55 acres of property south of Spring Mountain Road and west of Old Highway 71. The City will have no obligation to construct infrastructure for the annexed property. Any infrastructure like water and sewer pipes and taps will be installed at the developer’s expense and water and sewer services will be paid for by the residents to the City.

The Board voted on a zoning change for 1 Essex Place that will allow for the former Fianna Hills Country Club to be redeveloped into 104 units of housing for people 55 and older (90 units in a main building plus 14 individual cottages) plus on site amenities for the residents. The developer of the planned housing Sam Seeger spoke about the project. He said that it would be a “luxury high end” retirement community. He said that the community would provide 3 meals a day to the residents, but that each unit would also have its own full kitchen in the unit. Seeger was the developer for Grand Village At Clear Creek in Fayetteville that was opened in March 2019. He plans for the development here to be very similar.

Director Morton asked for clarification on the difference between retirement housing and assisted living. Seeger clarified that the retirement community will be for seniors with an active lifestyle. It will have “residents not patients” and in addition to the apartment style housing will be like a residents-only country club.

Director Settle asked if the development were sold in the future if the new owners could turn it into assisted living instead or if the apartments could be rented out as a regular apartment complex to people of all ages. Planning Director Rice responded that the zoning being voted on if approved would only allow for it be used as retirement housing for people 55+ and that other residential use or assisted living would not be allowed without rezoning.

Director Christina Catsavis asked if the funding is in place and ready to go to move forward with the project. Seeger said that it is.

Director Rego praised the Grand Village at Clear Creek and thanked Seeger for investing in our community.

Director George Catsavis asked the cost to live there and if it will be affordable. Seeger said he is “not going to build something that doesn’t make sense.” and said that prices will be “higher than what’s available in town, but they are going to be affordable” and said that it will be a “luxury product.”

Director George Catsavis asked if the facility will provide medical services to residents. Seeger said that it will not provide any medical services but they will lease a space to a home health company that residents could opt to hire if they desired.

Kurt Abbott with Property Owners Against Fianna Rezoning spoke in opposition to the rezoning. He said the site has a “park setting” and that the “huge structure and these cottages” will be a “blight” on the area. He expressed concern about the traffic generated by residents coming and going . He expressed disappointment that the amenities at the facility would be available to the residents only, not open to the public. He said it is “not going to give any benefits to us” and would not be “meeting any needs of our community.” He said that it would be a detriment to neighboring property values. He said thought that opposition was “not about the facility” but about the “memories that people have” of the Country Club. He said that people feel the Country Club was the “heart of Fianna Hills” and don’t want to have the potential for “future memories” removed by removing the potential of the Club to be restored. He asked the Board to allow more time for other buyers to buy the facility and “resuscitate the heart of our community.”

Lee Kemp, President of the Fianna Hills Property Owners Association, spoke saying that Fianna Hills needs a master plan. He said that a “40 million dollar investment is not a bad idea at all.” He expressed his desire to host a town hall and craft a master plan and decide “what will help Fianna Hills for the next fifty plus years.”

Fianna Hills resident Christ Dennelson spoke in favor of the rezoning. He said that he would love to have the golf course and club house reopened, but acknowledged that they have been vacant 5 years. He said the neighborhood is “fortunate conditions aren’t worse.” He mentioned having seen a similar development to the planned retirement housing be a successful part of the community in Houston. He said that the plan will “reinvigorate the South side of the city.” He praised the capital investment in the South side.

Fianna Hills resident Sheila Croxton spoke in opposition to the rezoning. Referring to the Fianna Hills Country Club when it was open, she said “the memories are wonderful.” and called the view at the site “one of the prettiest views in Fort Smith.” She said that the rezoning would be “taking away our privilege of having a club house there again.”

Director Rego said that he considers “blight” a “large empty building” and that blight “doesn’t include multi-million dollars of new investment.”

Director Martin asked Engineering Director Snodgrass about the traffic that would be generated by the housing. Snodgrass said that it would be a total of 369 vehicle daily trips, with an average of 29 vehicles per hour (16 entering and 13 exiting) during the peak hours of 4pm-6pm. He said that the traffic generated by the housing would be 70% less than the traffic generated by a golf course.

Director Settle said that elsewhere in Fort Smith there is “not one assisted living buried within a community.” He said that he would support the rezoning if they were to come back with a master plan for Fianna Hills and plan that would include access for the facility off Brooken Hill. He said the development would be “hard for people who saw the golf course parcelled out with no plans.”

Director Morton said that he wished the golf course was still there and the Country Club still operated. But he acknowledged that it isn’t. He said that based on the Grand Village at Clear Creek he thinks the development will be an “attractive facility”. He said that there are people who can afford it and who are tired of mowing their lawns and paying property tax and home insurance rates. He said that he doesn’t believe it is the Board’s place to block a sale to a buyer with a plan that has proved itself feasible in other locations.

Director George Catsavis mentioned that the building has been sitting empty for years and said that there is “no guarantee that anything better is going to come along” He called the development the “best thing to come along.” He said that people that want to hold out for the Country Club or a similar type of facility with recreation amenities and a restaurant to reopen are “chasing a dream.”

Director Martin reminded that he voted against selling lots from the former golf course 10 years ago and supported the 2022 plan for the health club and restaurant that has since fallen through. He said of the former club house “that facility is getting worse and worse over time.” He called the project a “great opportunity” that “creates a desirable place for seniors.” He said “I wish the Country Club was back, but it’s not coming back.”

Director Christina Catsavis asked about the possiblity of the development being accessible from Brooken Hill. Seeger answered “I would love nothing more than to continue down the hill and connect with Brooken Hill” in the future but it is “not in motion at this point.” Director Christina Catsavis asked if it might be possible for Fianna Hills neighborhood residents who are over 55 to purchase a membership that would allow them to use the amenities at the facility. Seeger said that that might be feasible and that it could be considered. He added that there has also already been conversation about “joining forces” with the Fianna Hills Property Owners Association to create a walking path along the top side of the development that would be open to all Fianna neighborhood residents.

The rezoning passed with all but Director Settle voting in favor.

The Board voted unanimously in favor of a measure that will allow for 6.47 undeveloped acres in the extraterritorial jurisdiction at 8819 Highway 45 South between Planters Road and Burrough Road to be developed into a 175,500 square ft parking lot for freight vehicle storage. Director Martin asked if the parking minimums and maximums would be a factor in relation to that property. Rice answered that they would not because it is in the extraterritorial jurisdiction.

The Board voted on amendments to the Unified Development Ordinance that will remove wording allowing deciduous materials to be used for required parking lot screening (leaving only evergreens allowed to be used), that will remove barberry from the approved list of screening shrubs, and that will add columns to the landscaping materials list distinguishing evergreen versus deciduous plants.

Director Settle asked if something prompted the proposed changes. Rice said that barberry loses its leaves in this zone. She said that Planning is “trying to set people up for success by not having them plant something and then have enforcements on them.”

The amendments passed with all but Director George Catsavis voting in favor of them.

The Board voted to issue a resolution recommending dissolution of the Fort Chaffee Redevelopment Authority. The measure is similar to one that was passed by the City of Barling on 3-26-24 and one reviewed but not put to a vote by Greenwood at their recent meeting and one that has been presented to the Sebastian County Quorum Court.

Fort Smith resident Steve Bean spoke in support of the resolution for dissolution. He expressed his view that the trust has not been acting to benefit the beneficiaries of the Trust as it was established to do.

Director Christina Catsavis said that the trust was designed to protect the beneficiaries and when it was established it was not expected that it would be “weaponized the way it has been.”

Director Martin said that it is “really close to wrapping it up” in reference to the amount of developable land left to be sold and said that it is the “right time” for dissolution.

Director Morton said of the FCRA, “In the beginning the purpose and goal was clear.” He said that the City used to work well with them. He expressed his view that it would be best for everybody if the FCRA, the beneficiaries, and the Fort Smith Chamber of Commerce all got together in a room and developed a “plan going forward that sets something that makes sense.” He said that “We get no cooperation” from the FCRA.

Of FCRA meetings he has attended, Director George Catsavis said “It’s a circus.” He said that the FCRA is down to 6% of the land remaining to be sold and that operating cost will bypass income. In reference to FCRA continuing to draw salaries, he said “This is what you call milking the cow.” He asked if the beneficiaries can ask for excess money in the trust account to be distributed to the beneficiaries. City Attorney Canfield said the beneficiaries can ask but the FCRA has the say over what is considered “excess”. He added that the Trustees are subject to judicial review and that if they are in violation of the law that that violation could be addressed.

Director Rego reminded that the FCRA has to vote to dissolve itself. Canfield agreed that that is the case. Director Rego said the situation is “fairly ignominious and kind of sad.” and that the FCRA has been integral to “hundreds of millions of dollars of economic benefit to the city.”

Director Rego asked what would happen next if the FCRA were to be dissolved. Administrator Geffken said that property and assets would be distributed to the beneficiaries, there would be a winding down of liabilities and that there would need to be a plan to make sure there were sufficient funds made available to cover projects already in progress like the Highway 255 project. He said that the historic museum would not be an issue as there would be no costs associated with that because it has folded or is about to fold. Director George Catsavis asked if the money would be split equally between the beneficiaries. Geffken said that it would, after the liabilities and projects already in progress were taken care of. Director Morton mentioned that there are industrial development corporations that are established in some places and suggested an entity like that could be formed to dispose of the remaining land.

Director Settle mentioned that the FCRA has been in place for 27 years. He reflected on how when he campaigned in 2016 he called Massard Road the “road to nowhere” and how far Chaffee Crossing has come since then. He said that the “idea is to develop the area. It needs to be dissolved. It needs to be closed.” He said that Chaffee Crossing has changed from its original vision because of the FCRA becoming focused on keeping itself going and on money.

Director Christina Catsavis said that she agrees with Director Rego about the good work that has been done at Chaffee Crossing, “just not under the current leadership.”

The resolution recommending to dissolve the FCRA passed with Director Rego voting no and all other voting in favor.

Director Settle mentioned his desire for an audit of the FCRA Board’s finances. Director Morton said that there already is one conducted by an independent third party annually that is publicly available.

The Board voted on prohibiting parking on top of sidewalks and water meters and on unpaved parts of street right-of-ways behind a Type A barrier ,Type C integral curb, or Type B curbs, with the exception of parking in that area by the owner/occupant of the adjacent property. Parking in these areas was discussed at the 2-27-24 study session.

Director George Catsavis asked who would enforce the prohibitions. Geffken answered the Police Department. Director George Catsavis said he would “hate to tie up our officers” and suggested that Neighborhood Services should be in charge of enforcement instead. Geffken said that all parking enforcement matters fall to the Police.

Director Christina Catsavis asked if the new rules would mean that residents could request no parking signs for the rights-of-ways in front of their property. Deputy Administrator Dingman said that all no parking signs are handled by the Police Chief and the Director of Streets.

Director Rego called the proposed changes “a solution in search of a problem.”

Director Morton said that with the rules being enforced on a complaint-only basis that they would “not generate a massive amount of police time.”

The rules prohibiting parking passed with Director Rego voting no and all others voting in favor.

The Board voted unanimously to contract with Forsgren for the relocation of utility pipes to accommodate the Highway 45 expansion project. The total cost of the contract will be $15,783,939.50 with ARDOT reimbursing the City for $14,528,061.60 of the cost. The project also includes upsizing the pipes from 16 inch to 24 inch pipe. That ARDOT will not reimburse for that upsizing is why the reimbursement would be only 94.8% of the cost instead of the entire cost of the project.

Both Director Martin and Director Morton expressed dissatisaction that the project will take 2 years to complete.

Director Settle said of the under $500,000 to expand the pipe size “That’s a heck of a deal.”

Director Rego expressed excitement that in addition to the upsized lines at nearly 95% reimbursement the Highway 45 expansion project itself will include widening to 5 lanes and adding bike lanes and sidewalks. He praised it as “pro-mobility” and “pedestrian and bike friendly.”

The Board voted unanimously to contract with Forsgren for repair of collapsed segments of sewer line and installation of 3 manholes for a total of $131,653.

The Board voted on renewing the contract with Cox to provide communications services to the City for $55,915.53 per month. IT Director Gentry praised Cox’s service in the past. Director Morton asked how the proposed cost compared to the previous cost. Gentry answered that the new pricing would be a cost savings of $4000-$5000 per month.

The Board voted in favor of the contract with all voting in favor except for Director Settle who recused himself from the discussion and voting because his brother works for AT&T.

The Board voted unanimously with no discussion to approve the design to be used for the artwork decorating the second National Fitness Campaign Fitness Court to be installed at 121 Riverfront Drive. There were 32 designs submitted by local artists for consideration and the Parks Commission put their top 3 design submissions up to a public vote. The design that received the most votes from the public was Design 3, featuring a runner’s legs and feet. The artist responsible for the design will be paid $5000 dollars.

The Board voted unanimously with no discussion to purchase a replacement bucket truck for Streets and Traffic Control from Versalift for $141,672.

During the Officials Forum section of the meeting, Director George Catsavis asked when the City would be taking over Towson Avenue (currently owned by the State). Geffken answered 2028 or 2029 and added that the City is still looking for grant money or other funding for the utilities work on the project.

Director George Catsavis asked about the third party audit of Fort Smith Animal Haven. Geffken said that a draft is ready and that he will ask Finance Director Richards if it is finalized yet and when it is finalized Geffken will forward it to the Board.

Director George Catsavis asked for a clarification on the code regarding gravel in front yards. Geffken responded that property owners can have yards that are 40% gravel but the other 60% must be green space. He said that the communication sent out via govdelivery was “just a reminder” and that the ordinance is really aimed at properties that are unkempt and ones that have large piles of gravel dumped and not spread. He said that there is no problem with landscaping with gravel in gardens and paths.

Director Christina Catsavis asked about the potential for putting a moratorium on land sales at Chaffee Crossing by the FCRA so that FCRA executives couldn’t have a “fire sale” to make sure they get their 2% commission before any dissolution of the FCRA occurs. Canfield said that the City does not have the authority to halt sales, but could make a request. Director Settle mentioned that the Fort Smith Board of Directors has zoning approval and could potentially make all the unsold FCRA controlled land unzoned and then it would have to come before the Board for zoning approval before it could be developed. Geffken said that Administration could look into that. Director Morton advocated getting all of the parties involved together to “develop a path forward without pulling out the swords” “at least at the beginning.” Director Christina Catsavis added that they have been requesting that sort of discussion for a year and a half and “haven’t gotten anywhere.” Director Morton said that resolutions are a “gesture” and that there are other paths you can take that might be more effective.