SPRINGDALE -- The City Council on Monday told city staff to pursue a possible purchase of the building housing Atco Rubber Products at 1403 S. Powell St. The building sits between the Springdale Municipal Airport and Powell.
Mayor Doug Sprouse said he sees the purchase as an opportunity for the redevelopment of the city's downtown.
The 65,000-square-foot building and 5 acres was appraised at $2.54 million last summer, said Greg Taylor, a sales associate with Weichert Realtors in Springdale. The website of the Washington County Assessor shows a 2021 market value assessment of $1,711,600.
The money for the purchase would come from the undesignated portion of the city's budget, which currently holds $14.5 million, said Colby Fulfer, the city's chief of staff.
The Atco plant in Springdale produces flex duct materials for residential construction.
Taylor is handling the discussions for the city with officials Mueller Industries in Memphis. Mueller purchased Atco in 2018.
Sprouse has proposed an extension of West Sunset Avenue to Powell and a new entrance to the airport as projects for the bond program the city plans to put before voters in late 2023. The city would have to acquire right of way from the company to build the airport entrance, Sprouse noted.
Patsy Christie, the director of the city's Planning Department, said the extension of Sunset as a major collector street was put on the city's Master Street Plan in 2017.
The council members all expressed support for the street project and agreed for city staff and Taylor to determine details of a possible offer for the property.
Wyman Morgan, the city's director of finance and administration, noted Springdale is the only city in Northwest Arkansas with an airport downtown. He noted that landing in Springdale would provide quick access to the headquarters of Tyson Foods, George's Inc. and other companies in Northwest Arkansas.
Sprouse said the city could rent the space for hangars. The city currently has 95 hangar spots and 80 people on a waiting list, said James Smith, director of the airport.
Or the city might be able to attract a company offering regular commuter flights, Sprouse added.
The city could lease it for aviation-related business, other commercial use or even residential development, he continued.
The city also could sell it later if determined the space isn't needed by the city, Sprouse said.
"What you really have to determine is if you want to control the land in front of the airport," Taylor said.
Council member Randall Harriman, who attended the meeting via Zoom, suggested the city work with Mueller to secure the right of first refusal if the company does decide to sell the building.
Sprouse noted the city's 2018 purchase of the current Recreation Center and the opportunity of that facility now realized. Council member Jeff Watson noted the city's forward-thinking purchase of warehouses behind City Hall, which provided space for the city's Municipal Campus currently under construction.
"I realize $2.5 million for something you're not going to use for a while is a big ask," Sprouse said. "But you're certainly never going to buy it cheaper than right now.
"I think it's the kind of thing, we would look back and say, 'I'm glad they thought of that.' But I understand if it gives you heartburn."
He acknowledged the city wouldn't have the money for the street project for two years. Mueller would ask for at least a two-year lease of the building as the company considered the future of its Springdale facility.
Discussion of the city's possible purchase of the Atco building began with Taylor calling area property owners looking for some place to build new bathrooms for the Razorback Greenway, Sprouse said.