Highlights of the Fort Smith Board of Directors Meeting 8/22/23
The Fort Smith Board of Directors meeting held 8-22-23 began with recognition of Robert Turner’s contributions as a leader of World Changers, a Christian student ministry that performs housing repairs for the needy (especially for senior citizens) including projects like roof repair, siding, painting, window replacement, and wheelchair ramps. The organization in the past 13 years has performed 196 projects in Fort Smith. Through Community Development Block Grant funds, their partnership with Lowes that gives them a 30% discount on supplies, and the labor provided by the youths, they have done $500,000 worth of repairs with only $135,000 of grant funds.
The Board also discussed waiving the fees for the required building permits and inspections for projects done by World Changers. Director of Community Development Gabucci and Administrator Geffken said that the permits paid for by World Changers typically total about $200 per year. Geffken pointed out that those fees could over a span of years add up to the price of a project.
The issue of a waiving the fees was added to a future meeting agenda for a vote.
The Board reviewed the annual reports of the Departmental Service Objectives for 2024 and outcomes of their 2023 objectives. The Directors presumably having read through the reports offered in the packet had very little discussion about them at the meeting. Director Morton said the “objectives for 2024 are definitely the kind of things we need to pursue.” and that “We need to move as quickly as our resources, money and manpower, allow us to move”.
The Board discussed cybersecurity insurance. The discussion included the possibilities of renewing with Brown Hill Clark or buying coverage from another company or getting coverage from Arkansas Municipal League. The renewal date for the current cybersecurity insurance policy is November 3, 2023. IT Director James Gentry said that that leaves plenty of time to research provider options. Director Morton said that he sees “nothing wrong with” the current coverage or the coverage AML would offer. He asked Phillip Merry who is under contract with the City to consult on insurance matters to clarify if AML’s cybersecurity coverage would be free (included with the insurance policy that we already buy from them). Merry clarified that it would be. He said that the limits are lower for AML’s coverage via a pool than the standalone policy from a private insurer like the current policy. Director Settle expressed his support for AML since its coverage is a part of something we’re already paying for. Merry said that in mid-September he will be ready to present all of the recommendations and quotes and coverage options for private insurers and AML for the Board to consider. He praised the Board’s taking cybersecurity coverage seriously. He said “Thank you for making it a priority and talking about it 3 months out.” Gentry agreed saying that “cybersecurity insurance is very competitive” and “not a get-out-of-jail-free card anymore”.
Directors Morton and Martin both mentioned the recent troubles that Fayetteville had with a cybersecurity incident and encouraged Gentry and Merry to discuss the incident with Fayetteville leaders and find out about what happened there and what they did about it and what sorts of insurance coverage they have and how that worked out for them.
The Board voted unanimously to enter negotiations to purchase land from Acme Brick for a park and a flood-reduction detention pond. The issue voted on at the 8-22-23 meeting only authorizes beginning negotiations on the property, any purchase will have to come back to the Board for a vote at a future meeting. City’s recent request for Acme to donate the land to the City was declined. Geffken said that the response from Acme was “very definitive” that they were not interested in donating the land. The land is in 3 parcels but platted all as one parcel, so it will be negotiated as one property. The former quarry site proposed to be developed as a mountain bike focused park is valued at $1,372,140. The former kiln site proposed to be developed as the detention pond is valued at $1,219,680. The third parcel is valued at $608,840.
Though no citizens chose to exercise their right to speak at the meeting, Administrator Geffken, Director Rego, and Director Good all acknowledged that there were many people in attendance in support of the park and moving forward with purchasing the land. Parks Commissioner Sam Hannah spoke in support of the project, especially in its capacity to prevent brain drain, calling it “incredibly important for those looking to move back to Fort Smith or considering leaving.” He said “We’d be silly not to jump at this opportunity.”
Director Rego voiced his continued support for the project even with the land potentially being purchased instead of donated saying “It remains that this is a good beneficial project.”
Director Settle suggested that eminent domain be used to acquire the land. Geffken said that that option had not yet been explored and reminded that that would still require an assessment and then paying fair market value for the land. Director Morton said “What Settle proposes is something to consider.” but expressed his preference to “negotiate in good faith for a reasonable price” first.
The Board voted unanimously to negotiate a price and make an offer not to exceed $500,000 on the property at 4501 Burrough Road that was formerly the Whole Hog Cafe to purchase it to become an additional police precinct. The existing building there would be modified to serve as a police station building.
Director George Catsavis asked about why that location was chosen saying “I wanted to put one out East.” Geffken responded that it was chosen for accessibility because it can quickly reach both Fianna Hills and Chaffee Crossing. Plus, rents for properties considered at Chaffee Crossing were very high in comparison to purchasing this property outright. Several other Directors also expressed agreement with the accessibility and suitability of the location. Director George Catsavis agreed.
Director Settle said he was “all in favor” of the purchase for the new police station. He also said that the purchase opens up the discussion of extension of Planters Road to Burrough Road and over to Massard. Geffken said that that extension has already also been discussed with County Judge Hotz and that he is also in favor of the extension.
Director George Catsavis added an item to the agenda at the meeting regarding Deer Trails Golf Course. He said that the Fort Chaffee Redevelopment Authority recently denied the City’s request for the FCRA to donate the property to the City so that they could make sure that it continues to be used as a golf course. He expressed concern that progress is being halted on the development of residential property near the course because banks won’t loan to builders until they are assured that it will remain a golf course. Director George Catsavis said that FCRA’s Daniel Mann and his interest in his 2% commission on the sale of all FCRA land is the “only thing holding us up”. Catsavis suggested that the City issue a moratorium on water and sewer taps on FCRA controlled properties inside the Fort Smith city limits and issue a moratorium on rezoning for any FCRA controlled properties inside the city limits. He said “Nobody’s gonna buy land you can’t get water or sewer to.”
Director Rego argued it is “important to recognize there is an owner who has the right to sell or donate or use property” and that he cannot see anything the FCRA has done that is “worthy of the level of punishment being proposed”.
Director Morton suggested that another attempt at negotiation be made, this time with proposing a donation of the land with a 50 year long binding guarantee that no future Board of Directors or City Administration could change the use of the land from being a golf course so long as the course remains financially viable. Director Morton expressed his concerns about moratoriums on water and sewer and zoning being too harsh and that legally the city has to avoid making “arbitrary and capricious steps” and that he felt those actions “would be a harder sell” legally. He suggested instead that the City address the FCRA’s concerns so that they “don’t have to trust the City” since they will have a binding contract. He expressed his view that that sort of approach would have a “greater chance of getting something done in a shorter time.”
Director Settle said of the moratoriums “I had those same thoughts.” but he is “not ready to pull that trigger yet.” He voiced his support for negotiating one more time. He also pointed out that the FCRA are intermediaries, not the owners of the land. The FCRA land was originally taken from its owners to build Fort Chaffee and when the base was closed it was put in a public trust (the FCRA) to be sold and redeveloped.
Of another attempt at negotiation, Director George Catsavis said it is “fine if you want to try that approach first”.
Geffken reminded that the only way that the FCRA can be dissolved other than by State level action is for their board to vote unanimously to dissolve themselves. The beneficiaries of the trust cannot dissolve them. Director Christina Catsavis said that she has been talking to her contacts at the State level and that with only 489 marketable acres left there is interest from Little Rock in taking State level action. Of the FCRA situation, she said if they won’t work with us “in the interests of the public” dissolving the trust is “something we should talk more about and consider”. She also said that the Board of Realtors is looking into the legality of Daniel Mann’s 2% commission.
Director Martin expressed his frustration at the situation and the FCRA’s unwillingness to cooperate on the golf course issue. He is especially frustrated that it is holding up housing being built around the course because more housing is needed. However, he called the proposed moratoriums “overstepping a little bit”.
Mayor McGill said that his feeling from the meetings with and communications with the FCRA is that if the City can guarantee 50 years for the golf course it would give them the security they are looking for. He said that “everyone” (both the City and the FCRA) is interested in the golf course remaining.
The Board voted unanimously to have Geffken negotiate again, this time presenting a proposal for the FCRA to donate the land to the City with a 50 year binding contract that would not permit any future Board or City Administration at any point to change the use from being a golf course so long as a course remains financially viable.
