Springdale adds industrial road to street bond list

Springdale City Hall is shown in this undated file photo.
Springdale City Hall is shown in this undated file photo.

SPRINGDALE -- The City Council on Tuesday unanimously added a road project to help bring industry and fun to town.

The council voted to build an extension of Kendrick Avenue to North Jefferson Street in the city's industrial park north of town. In return, the Public Facilities Board committed to use $2 million from selling lots in the industrial area to work with the city on a future project.

The council decided to use $1.7 million from the 2018 b0nd program for roads. The city in March received a $1.5 million grant earmarked to the $3 million project from the U.S. Department of Commerce and the Economic Development Commission.

Mayor Doug Sprouse told council members May 18 he would like that money to contribute the city's part to the rebuilding of Luther George Park in downtown. But he insisted it would be the council's decision.

"We're lucky," said Perry Webb, president of the Springdale Chamber of Commerce. "The Public Facilities Board can build anything. They can build a park. They can build a road. They can build a parking lot. They can build a health care facility.

"It will be a project of your choosing. Or it can even be more than one project."

The Public Facilities Board owns industrial land for the city and promotes economic development on behalf of the city. The chamber administrates the work of the board.

City officials say new infrastructure will help entice the owner of a company manufacturing food processing equipment to build a plant at the southeast corner of Jefferson and Kendrick. The city owns most of the land north and south of Kendrick, from Jefferson to Old Wire Road on the east, as part of an industrial district.

Webb said the planned development includes 50,000 square feet of manufacturing space and 30,000 square feet of office space on 17 acres and bring 125 new jobs to Springdale

The sale stalled with the shutdown for the covid-19, but Webb said he expected negotiation to resume soon.

The new road will provide access to a recently improved state highway for the food equipment manufacturer and other prospective companies, said Wyman Morgan, the city's director of administration and finance.

"Timing is everything," Webb told the council. "We have this grant. The city had a little bit of money left in its road bond. And we have this company wanting to build a large facility that's going to need a large chunk of acreage."

The Facilities Board bought 87 acres on Kendrick five years ago, Webb said, with proceeds from a bond let for this purpose. The March 31 balance on the bond is $625,575.

So as the board begins selling lots from this land, 50% the revenue goes to pay off the bond and 50% will go to whatever project the city chooses, Webb said. The sale of industrial land in any other part of the city will see 100% for the city.

In addition of 194 feet of road and drainage, the project will need an interchange with Jefferson Street, which is also Arkansas 265. This will require approval of the Arkansas Department of Transportation.

Webb said the state developed the highway as a "limited access road." Fewer places to turn on or off the road keep traffic flowing in this north-south thoroughfare through the region.

Webb said the city has four interchanges, and probably will lose one to build the access at Kendrick.

The council approved a contract with ESI of Springdale to serve as construction manager for the project with the company's compensation to cost no more than 7 percent of the project.

Council members were hesitant to mark the money for the street because the state hadn't given its approval for the project. Council member Kathy Jaycox suggested the measure include a contingency, in case the state turns down the request for the interchange. The council agreed.

She also voiced concerned money had been spent on engineering a project that wasn't set.

"We did just enough engineering to show ArDOT what we want," Webb said.

If the state doesn't come through, the $1.7 will remain in the city's street bond fund. "We will have all the approvals," Webb said.

NW News on 05/27/2020

Upcoming Events