GREENWOOD -- The City Council decided to hold off trying to buy the means to extend water service to about 36 acres of property ahead of a meeting with the state.
The council tabled a proposed offer to purchase water rights for the land for 30 days at its meeting Monday. The council also tabled an agreement with Sebastian County to provide access to water services for one of the developments planned for the property: a new, larger facility for the Sebastian County library.
Mayor Doug Kinslow requested the council table the items. He said representatives of the Arkansas Natural Resources Division will serve as mediators in a meeting between the city and the board for the James Fork Regional Water District, the rural water association who owns the water rights now, at 10 a.m. July 29 in Greenwood.
Kinslow expressed hope for a decision being made regarding the water rights July 29, with the Natural Resources Division ensuring the discussion is fair for all involved. The City Council will discuss the matter and the agreement with Sebastian County again either at its meeting Aug. 8 or a special-called meeting beforehand.
"The good news is they're coming; the bad news is it's a couple of weeks away," Kinslow said. "Hopefully, we can get some things settled and we can get the library started and get whatever else is going out there on that property started fairly to both parties."
Kinslow said the Natural Resources Division would have to approve any agreement to purchase the water rights regardless of the July 29 meeting. City officials spoke with division officials over the past couple of months concerning negotiation with the water district.
The council approved annexing the 36 acres at the northwest corner of Arkansas 10 Spur and U.S. 71 on April 4. It covers six parcels owned by Jacob Burton of MJE Construction and is planned to be a mixed-use development called the Curve.
Sonny Bell, Greenwood's planning director, has said the city needs water rights to provide the Curve property water and fire protection services, a requirement per the annexation ordinance.
Cheryl Garner, a Realtor with the Fort Smith-based Keller Williams Platinum Realty who's working with Burton to market the property, has said commercial development essentially can't happen without water and sewer service and the ability for fire suppression.
The City Council tabled a proposal to acquire the water rights for $79,112 contingent on certain conditions April 4. This included the city also purchasing 53 water district customers next to the annexed property along Center, Rockside, Shady, and Hillcrest streets within five years at an agreed price and subject to the annexation of the property.
The city suggested the water district separate the purchases of the two sets of water rights at a meeting June 6 to expedite development for the Curve property and out of uncertainty over whether the other property will be annexed within five years, according to Kinslow. Kinslow said Friday the district's board hadn't agreed to do so at that point.
The proposal the City Council discussed Monday only entailed purchasing the Curve water rights for $79,112, the original asking price. However, the city would continue negotiating with the district board and pursue buying the water rights for the other district customers.
The agreement between the city and Sebastian County states the city would provide the Curve property access to water services at an estimated cost of $167,900. Doing so would serve as the city's matching contribution to the county library, a new facility for which is intended to be on the property. Sewer services are already accessible on the property.
Ken Hamilton, chairman of the Scott-Sebastian County Library Board, said at the meeting he believes the City Council voting to table the agreement was a good decision if it leads to the city getting a better deal for the water rights. The current county library in Greenwood is at 18 N. Adair St. and was built in 1965.
Jeff Turner, Sebastian County administrator, said Tuesday the county hired the Fort Smith law firm Gean, Gean & Gean to facilitate Burton donating a portion of the Curve property, about 2 acres, for the new library July 6. The donation hasn't happened at this point.
The Curve is also planned to be the site of developments such as multifamily buildings, multistory commercial buildings, restaurants, a high end convenience story and a boutique hotel, none of which can move forward until the city secures the water rights, according to Garner.
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NoneHow they voted
Aldermen Daniel McDaniel, Lance Terry and A.C. Brown Jr., as well as Mayor Doug Kinslow, voted 4-0 to table both the offer to purchase the water rights for the Curve property and the agreement with Sebastian County to provide access to water services for the planned county library. Aldermen Rod Powell, Tim Terry and Ralph Meeker were absent.
Source: Greenwood