Agency sets purchase for downtown project

The dilapidated property at 326 Main St. was approved by the Urban Renewal Agency for purchase along with three other properties on Main Street for a total of $137,000. 
(Pine Bluff Commercial/Byron Tate)
The dilapidated property at 326 Main St. was approved by the Urban Renewal Agency for purchase along with three other properties on Main Street for a total of $137,000. (Pine Bluff Commercial/Byron Tate)

With the green light to make the final decisions regarding eminent domain, the Urban Renewal Agency is now entered into a contractual agreement on four downtown properties while filing a complaint in Jefferson County Circuit Court against five other properties on Main Street between Third and Fourth avenues.

During Tuesday's monthly agency meeting, a resolution to acquire 305, 309, 315 and 326 Main St. from Elvin and Shelia Moon for $137,000 was approved.

Court documents provided to the Pine Bluff Commercial were filed that same day, showing the agency's progression to revitalize downtown.

Five tract numbers were listed as needed for urban renewal purposes. According to court documents, Tract Nos. 1, 2, 3, 4 and 5 comprise one commercial building at 300-314 S. Main St.

There is common ownership in the properties, said Roger Dadlani, also known as Anil Dadlani, who is the common representative for all the parties with ownership in the tracts of land.

Court documents read that Tract Nos. 1 and 2 are owned by the entity Smiles Inc.

Smiles Inc.'s registered agent, president, secretary and treasurer is Roger Dadlani.

Tract No. 3 is owned by Jack Dadlani. Tract Nos. 4 and 5 are owned by couples Jack Dadlani and Shobha Dadlani and Bobby Dadlani and Shalini Dadlani.

The owners have not yet responded to the agency's move to exercise eminent domain, and the agency has asked for the case to go to a jury trial.

The four other properties currently under contract puts the agency closer to its redevelopment plan.

"This will put us at about 50% owning or having site control," agency Executive Director Maurice Taggart said.

The closing date is on or before June 30.

In order to move forward in the redevelopment of the old Walmart building at The Pines mall, Taggart made a request for consideration and setting the "Use of Value" for the future movie theater purchased by Felix Waller, owner of Apex Cinemas.

In December, the Pine Bluff Commercial reported Waller wanted the agency to buy the building and lease it back to him. Waller went ahead and arranged to buy the 90,000-square-foot-building but now needs a "Use of Value" in order to secure funding for development.

"Waller currently owns the building," said attorney Cody Keys, who represents the agency. "He bought the building for $450,000 with Urban Renewal plans to put a $950,000 investment into the facility coupled with a substantial investment by him of $7 million."

According to Keys, if the Urban Renewal Agency purchases the facility back from him for $450,000 and begins its share of the investment of $950,000, that puts the total price invested at $1.4 million, which both parties agreed would suffice as the "Use of Value".

"At some point, we have to sell this building back to him and the question becomes for how much, and that's what the use-value is," said Keys. "They're agreeable to assigning a use-value of what we purchased the building for and the funds that we put out in it, which is $1.4 million, and then another $25,000 kind of as a good faith proposal."

Keys explained the process to the agency, stating that the agency would purchase the building and become the owner, but Apex would have full possession of the building.

Apex would enter into a rent-to-own agreement but would have full control of the building and take care of all expenses.

The $950,000 investment by Urban Renewal would act as a grant, which Keys said would get a significant return on the back end once the theater and trampoline park is open for business.

"They will make payments to us all while this renovation is ongoing," said Keys. "When they get to a point where they've paid $1.4 million in rent, it automatically reverts to them and they pay us $25,000 in good faith."

Keys said 10 years is the ideal time frame suggested for Apex to make the payments contingent on what kind of financing Waller can get.

Another option would be for a commercial appraiser to look at the property and come up with a number.

Keys said he felt an appraisal would present its own set of problems, considering Waller did not have detailed plans of what the space would look like. With Waller investing $7 million, Keys said he felt it wouldn't be fair to use that figure to estimate the value of the property.

Agency members disagreed and felt a commercial appraiser would be valid.

"They don't necessarily have their plans until they get some financing," said Keys. "How do you appraise a project where you don't have the actual plans of what it is going to look like long term."

Keys said there would be a lot of questions from the appraiser that the agency wouldn't have an answer to.

Agency members agreed that Waller needed to provide plans, considering the money from the agency wouldn't be allocated until specific plan details were provided up front.

"I think it's reasonable for us to have that as part of what we want from the investor," said agency secretary Kirby Mouser. "I think there is some middle ground to be reached."

The agency voted to table the "Use of Value" request until an appraisal is done.

The Urban Renewal Agency discusses “Use of Value” for the old Walmart building being purchased by Felix Waller, who plans to develop a movie theater and trampoline park. 
(Pine Bluff Commercial/Eplunus Colvin)
The Urban Renewal Agency discusses “Use of Value” for the old Walmart building being purchased by Felix Waller, who plans to develop a movie theater and trampoline park. (Pine Bluff Commercial/Eplunus Colvin)

CORRECTION: The Urban Renewal Agency was asking for a jury trial in a case involving the use of eminent domain to take possession of some downtown property. An earlier version of this story incorrectly described which party was asking for a jury trial.

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