The value of lawyer Richard Mays Sr.'s three-story building at 415 Main St. is inching up, according to a new appraisal of the property obtained by the Little Rock Technology Park Authority Board. The board wants it for its planned $100 million technology hub.
An Oct. 20 appraisal by Jack Larrison of Larrison & Co. puts the property's value at $670,000, up from the $470,000-$530,000 price range Larrison gave it in June 2014. Mays' building is three stories with 10,020 square feet, or now nearly $67 per square foot, according to the appraisal.
Mays is getting a separate appraisal and was hesitant to guess at his appraiser's market value.
"I'm sure it's going to be more than $670,000, though," Mays said.
In the meantime, another buyer has come calling.
"I'm anticipating another offer for my property that's more reflective of the value that I think is realistic," Mays said.
"But I'm trying to deal with the tech park first," he added.
The prospective buyer is from out of state and would "associate with an educational institution that is local." The business focuses on minority outreach, he said.
"I would consider it a serious interest," Mays said about the possible buyer.
The tech park needs Mays' building to complete the package of buildings it's contracted to buy from companies owned by Little Rock financier Warren Stephens in the first phase of development of the tech park. When complete, the technology center's grounds will be in and adjacent to a city block between Main and Scott streets off Capitol Avenue and Fourth Street.
The board voted at its last meeting to have its real estate lawyer, Scott Shallhorn, draw up a condemnation lawsuit against Mays if he and the board cannot reach an agreement on price. The tech park authority board is to meet at 4 p.m. Monday to discuss, among other things, whether to proceed with eminent-domain proceedings to take Mays' property.
Mays, a former legislator and Arkansas Supreme Court judge, has practiced law in the building since 1984 and is joined in the firm by his son and daughter as well as Arkie Byrd.
Tech park Director Brent Birch said the board would like to close on the Stephens properties as soon as possible, with Jan. 15 being the earliest and the end of February being the latest. The board hopes to start construction shortly thereafter.
Mays said Wednesday that he would like to make a presentation to the tech park board before any litigation begins. He is willing to lease the building for use by the tech park, and because that offer has been extended, the tech park board has to make an "absolute" case to own it, Mays said.
However, he said his strongest legal argument for keeping his building hinges on whether the tech park's use of the property is for "public purpose." If a court determines otherwise, the tech park wouldn't be able to use eminent domain to take it.
"I'm not saying I wouldn't sell, but I do believe my legal position has a solid platform," he said.
Filing a condemnation suit against Mays "only guarantees a fairly lengthy debate, and I don't see how that is going to be possible to resolve without the Supreme Court making a decision," Mays said.
"I don't think it would be resolved at the circuit court level," he added.
The board has agreed to pay Stephens $11.6 million for Five Main Place (also known as the Exchange Bank building) at 423 Main St., the annex at 417 Main St. and the old Stephens Building at 114 E. Capitol, plus three parking lots in the area.
The Exchange Bank building, the most valuable of the properties, bears a price of $8.5 million. At roughly 45,500 square feet, the price per square foot comes to about $187. Both the annex and old Stephens building are vacant; the old Stephens building is scheduled for demolition.
Birch said the discussion at Monday's meeting will include the condemnation suit but also "everything that's evolved, negotiationwise, since the last board meeting."
"I don't think they're going to walk in the door and say yes or no, are we suing him or not?" Birch said. He expects a lengthy discussion about the matter.
Business on 10/29/2015