Highlights of the Fort Smith Board of Directors Meeting 6/14/22
The Fort Smith Board of Directors study session meeting held 6-14-22 started with discussion of a temporary moratorium on issuing building permits for residential construction around the airport. The moratorium would most likely be for about 18 months and would be to allow for a sound study to be conducted and its findings to be used to determine what requirements would be necessary for buildings near the airport to deal with noise from the F-35 jets that are likely to be coming to the Air National Guard Base. The environmental study being conducted by the military is one of the final hurdles in Fort Smith’s journey toward being the city chosen for the F-35 mission. Sound issues are a part of the consideration in the study. The main aim of the moratorium would be not building in ways that might negatively impact the outcome of that study or delay that study.
City Administrator Geffken and City Attorney Canfield clarified that the moratorium would be on only new residential permits (not commercial ones), that it would not affect existing homes wishing to do things like renovate or add up to 25% additional expansion to their home or build pools or decks, and that developments that have already been received permits would still be allowed to continue their construction. Geffken stated that the “ultimate goal is to not have any construction prohibited” but that the moratorium aims to not waste builders’ time and money on precautions like triple pane glass or sound proofing that is not necessary while also not delaying or losing the F-35 mission coming here.
Director Dawson asked about who drew the lines for the moratorium map. Canfield clarified that Planning Director Maggie Rice drew the map and that it is based off of sound contour maps from a previous sound study conducted back when F-16s were active at the base. The lines were drawn as close as possible to the contour where the limits were near the allowable 65 DNL noise level.
Director Catsavis asked if the City is trying to purchase property in the area affected by the moratorium. Geffken responded that the City is not currently pursuing that, that there were discussions, but the sound profile area is large enough that to buy the land would deplete the treasury. Catsavis asked if the moratorium would have an effect on eminent domain. Canfield responded that it would not have an effect either way on the potential for use of eminent domain. But Geffken added that use of eminent domain was not being discussed and called it “the last thing we’re considering” .
Director Dawson asked how many residential permits are currently active in the moratorium area. Building Services Director Jimmy Deer answered “guessing less than 10” and Geffken added that he felt there were actually far less than 10 and that the developments already issued permits were not in danger of making Fort Smith lose the F-35 mission.
The Colonel helping facilitate the City’s process to winning the F-35 mission spoke. He mentioned that the military’s Environmental Impact Study is expected to be drafted between August of this year and March of next year so “time is of the essence”. He expressed concern that another city could be chosen if we allow anything to lengthen the process. He mentioned the billion dollar per year economic impact of the program and the 1200 people it is predicted to cause to move to Fort Smith. He called builders a “critical part” of being ready for that growth and said that we need to be “doing everything we can to support them” and “not make them build to a standard that will increase the cost”.
Director Martin speaking of the anticipated growth added we “do have to have homes for people to live in”. Director Settle asked whether F-16s or F-35s will be used in the sound study. The Colonel answered F-35s because they are louder.
John Alford, representative of Massard Commercial Park Development, whose client Clifford Cabaniss has plans for building commercial and residential developments including a $25-30 million duplex development in the moratorium area, spoke. Cabaniss’s planned development is the only large residential development currently planned for the moratorium zone. He mentioned that Cabaniss had been in the process of finalizing plans to build and was “ready to move dirt” when he was approached by the city and there was discussion about compensation to move the residential part to another location instead and develop that property commercial. However those talks had stopped and then he heard about the plan for a potential moratorium. The moratorium leaves his client without the ability to move forward and him losing money from the delay and the rising building costs and the city losing money from the property not being developed. Alford urged the board to consider local investors who were planning developments since before the Air Base plan came along.
Director Dawson asked if having to wait on the moratorium caused higher building costs, would the builder’s higher costs not just be passed on to the customers? Alford responded that the planned duplexes being rental units are very sensitive to affordability and price competitiveness. Dawson spoke about the base’s economic impact on the city saying enthusiastically “The base HAS to be here. It has to come”. She asked Alford what his suggestion would be for a solution where all sides can come together. Alford answered a trade of property or compensation for having to build something else.
Director Rego mentioned being a son of a 2 Star Air Force General and that he moved around to different bases growing up and cited his experiences in Colorado Springs that sound from jets does not cause massive negative impacts. He also called the new mission “absolutely crucial to the most vibrant possible future of this community”.
Clifton Cabaniss, the property owner hoping to build residential duplexes in the moratorium area soon, spoke. He stated “I am FOR this base”. He said that he is busy building in anticipation of the base. He expressed his concern that he was told that the property at the end of the runway is in the danger zone for aircraft and worries that he may wait for the moratorium and still end up with the government putting a stop to building the duplexes. He has sold 2 million in lots already and has plans for 400 families to be able to live in the duplexes. His plan was approved 3 years ago before the planes and he needs assurance now that he will be able to build as planned or some sort of trade that is fair to him and to the future renters and to the city.
Kyle Parker of Arkansas Colleges of Health Education who has land in the moratorium area spoke. He said we “need this base”. He suggested that the City talk to cities elsewhere that have F-35s and ask them what regulations they did and what types of things they required and base our regulations off of what worked for them. He said that that would let people build but in a way that would still be noise compliant. He agreed with Director Dawson that high building costs could be passed on to customers. He expressed the pressing need for more housing for ACHE students.
Director Good asked if adding the moratorium ordinance to a Board meeting agenda would hinder negotiations with Cabaniss. Geffken expressed concern that it is “not really prudent to move forward” with that until we have more data. Director Morton advocating for negotiations with Cabaniss added that there is open land around that could be traded. Geffken expressed a desire to confirm that the property is definitely in the danger zone and said that action may be required from the city if it is but that we don’t know that yet. He said that he wanted to have the data to make an informed decision before asking the Board to commit to spending millions of dollars.
Mayor McGill said that the State has committed millions and the city has committed over a million dollars on the runway expansion. He pointed out that “many states are competing vigorously” for the mission and said “we will figure out a way to make sure Mr. Cabaniss and Mr. Parker are satisfied”.
The temporary moratorium issue was added to the agenda for the next Board of Directors meeting.
The discussion of design plans for the new dog park at Chaffee Crossing that was on the agenda for this meeting was postponed to a future study session due to a scheduling conflict with the design firm.
Conventions, Sports, and Leisure International’s Bill Krueger gave a presentation about the results of the feasibility study for an indoor sports facility. The study started in November. The study found that there is a moderately strong to strong demand for a facility. Volleyball, basketball, wrestling, soccer, and off-season training for field sports are the core recommended uses for the facility. It is recommended that the facility be publicly owned by the city but managed by a private management company. The recommended facility would be a 120,000 sq ft building on 10 acres and include 8 hardwood basketball courts (that can also be divided to serve as 16 volleyball courts), a regulation size indoor turf field, a walking track, food court, and locker rooms with optional space for performances and e-sports. The main reason recommended for the city to invest in the facility would be the economic impact of attracting tourists. On the weekends the facility could be booked for tournaments bringing in lots of participants, but the weekdays could also provide added community benefit by being used by local residents.
The construction cost of the facility is estimated to be $31.2 million. After the 4th full year of operation, it is predicted that the facility would generate an annual profit of $319,000, an annual city tax revenue of $.76 million, and an annual economic impact of $42.4 million.
Director Rego called the facility “something I’m very hopeful we can find a path forward on”. He asked if Krueger factored in the expected grown from the F-35 mission in the study. Krueger responded that they did consider it but didn’t have enough data on it and made an effort to be conservative in their figures so any additional new growth would have a positive effect on the financial performance of the facility but was not a determining factor in the recommendations made for the facility.
Director Morton asked how other cities with comparable facilities fund them. Krueger mentioned several options including bonds (but the operating profit for the facility is never enough to fund the debt service on the bonds), sales taxes, hotel tax increases, property taxes, food and beverage taxes, entertainment taxes, and general fund budget allotment. Geffken added that the hotel tax here is already at the legal maximum unless the city were to add an additional 1000 acre park, then they could raise it by 1%. He also stated that the property tax is at its legal maximum. Director Morton mentioned that a proposed food and beverage tax was not well received by the public in the past and that that would only leave the sales tax option. He noted that a sales tax renewal recently was passed but that it was passed only narrowly and after a hard fight.
Director Settle mentioned having recently visited the Springdale Recreation Center for his daughter’s volleyball tournament and urged the board to reach out to Springdale and see how they funded it. He also suggested reaching out to our local Boys and Girls Clubs, schools, UAFS, and sports leagues to be certain about the local interest in the facility.
Director Morton said that we are “staring a recession right in the face” and that while we are in a good position to weather that there is a need to be cautious on a $30 million project until the F-35 mission is absolutely determined officially to be coming and the Marshals Museum is completed. He said he wants “to be realistic” but “would love to have this”. He also mentioned that he felt some of the cities with facilities mentioned in the presentation were not good comparisons for Fort Smith because they are cities with heavier existing tourism.
Director Good said that “a lot of people in the community really want to see this happen” and that he is “hopeful” that through a “hodge-podge of funding mechanisms” the facility will be “doable”.
Mayor McGill said that there is a “big void in our community for people between the ages of 16 and 30” and that a “space like this would fill that void”. He said he would “encourage us to not put this on the back burner”.
Fort Smith Convention and Visitors Bureau Director Tim Jacobson called the project “very difficult to do” but said that facilities of that type are a trend that is continuing to grow and that timing is important. If we don’t act in a timely manner, other cities in the region might build one first and attract those tourists. He said that there is a “huge void for this type of facility. If Fort Smith doesn’t do it, someone else is going to do it.”
Krueger said that the next step if the Board chooses to move forward on the indoor sports complex idea would be exploring possible sites. He praised Fort Smith’s great amount of hotel options and comparable abundance of suitable sites. Three possible sites were all seen as being ideal, one near the Marshals Museum and John Bell Jr. Park, one at Ben Geren park, and one at Chaffee Crossing.
Near the close of the meeting, Director Morton mentioned that he was going to miss next week’s meeting due to being on vacation. Since he is going to miss the opportunity to vote on the residential permit moratorium near the airport, he still wanted to take the opportunity to speak on the issue at a public meeting even though it was just the study session. He stated “I am fully in support of the moratorium” and expressed the “need to be fair to business and tax payers that have the property”.
