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Mayor Harold Copenhaver said, you know, chairman, if you’d like me to move forward, I can make comments, or do we have any comments by councilmembers? Chairman Joe Hafner said, well, I mean, I know, Steve and I talked earlier this afternoon. I know everybody wasn’t able to see the slide show on Friday, so I'm perfectly fine with Steve going through that again. I think it's always good for the public to see it. Mayor Harold Copenhaver said, ok. Yeah, we can. And if it's all right with you, Mr. Chair, I'd just like to make a few short statements. Chairman Joe Hafner said, go ahead. \r\n\r\nMayor Harold Copenhaver said, all right. Councilmembers and residents of the city of Jonesboro. First of all, I appreciate the opportunity to always sit before you, but more importantly, as we move through a balanced budget in moving on to 2026, one of the key words is going to be consistency. So, council, you'll find that this budget is consistent with previous budget. A consistent revenue stream that supports consistent reoccurring expenses. So, I've asked the finance team to develop a practical plan where a concept of measured utilization. I'm sorry, I'm a little out of breath, just came from City Youth. Measured utilization of reserves will fund only capital infrastructure improvements and not operations. I also challenge them to hold the budget cycle to a consistent operation structure versus expansion of systems and personnel. This will ensure a better utilization of current systems to meet the challenge for each department to provide expanded and more efficient services to the public. You'll notice that there are no new revenue streams and the most impacting expense increase is continuation of the annual salary increases of all employees. While increased costs across the board are inevitable, we requested both a significant system and request from our providers and current components to manage and hold increases until further evaluation. These will be assessed as timing of contract renewals arrive and perhaps, we're going to see what the first quarter results of the new year looks like. So, my letter states, additional consideration will be given to budget requests after the end of the first quarter and growth trends once they have been gathered. So that's the end of my initial statements. \r\n\r\nChairman Joe Hafner said, thank you. Steve, would you like to come up. Finance Department Director Steve Purtee approached the podium and said, Mr. Chairman, thank you for the opportunity. Rather than just rewind and press play again. I thought I'd just kind of recap some of our comments from our earlier meeting last Friday. I appreciate that you were calling for a working meeting for the full City Council. It gave us all the opportunity to see that information. I appreciate our clerk, providing not only the budget document as an attachment to this resolution, but also this PowerPoint here. Miss April, are you going to drive this or? Ok, thank you. So, from there, we just thought we would just highlight some of the key comments that we made last Friday. As we indicated, the mayor commented in his comments that we do have a balanced budget here. Our total expenditure spend will be about $85,000,000. Approximately $72,000,000 of that, or roughly 90%, will be in our O&M expenditure category. We'll have about $1,100,000 in capital improvement expenditure if this budget is approved by City Council next Tuesday, pending your forwarding for their review. Our O&M sales tax revenue is simply a reforecast of our 2025 budget. We will end the year at a 1.8% increase in our budget. Sales tax revenues compared to the previous year will be about a $1,000,000 behind our budget projection when that year concludes and that'll be in the range combined for both city and county just under $40,000,000 or $50,000,000. So, we just simply reprojected that same revenue stream for 2026. It'd be about a 2.5% budget increase compared to current year projection. Our salary and benefits, as mayor alluded to, we have a 4% overall increase for all full-time employees. This will consist of our standard 2% annual step increase, which is just a continuation of our 2016 resolution approval of a salary administration plan by the City Council body back at that time. So in theory, it will be reaching its 10th year, calendar year, in creation since that date. Additionally, over the past since 2022, we have further provided a cost-of-living adjustment in each of our budgets since that time. This particular budget cycle, we're projecting a 2% cost-of-living adjustment. Again, equating to a total 4% overall increase in salaries for all full-time employes. Additionally, in the benefit category, as you all are aware we initiated in response to fully insured insurance program, medically insurance, with the continuing cost of that historically. We did move into a captive program beginning the first of the year of 2025, as we alluded to last week. But we've seen claim activities decrease from $10,000,000 down to $8,000,000 in that program, and so we're certainly pleased with that. You may recall that one of the initial benefits of going from fully insured to self-funded is a program of being able to save the administrative cost that would go to the TPA who’s administering that plan for us. In this case, it’s Blue Cross Blue Shield. So, we were able to save about 13%, which immediately went into our captive program as seed money for our claim activity. In addition to that we have administrative costs, all in we’ll be about a $1,500,000 in total administrative costs, which is consistent with what we were utilizing or doing in our fully insured program. One benefit of the captive program is we do have other avenues available to us for prescription services, pharmacies spend. We've seen considerable savings in that. We've had roughly $350,000 return premiums for our spend relating to that as well. So, all of those are adding to our captive program. We did hear that the market was increasing overall fully insured costs anywhere in the 15% range. We think it's prudent for us to consider something likewise for our captive program. It'll take us a couple of years to see the exact run of activities relative to what goes on in a self-funded program. Effectively we're one year in, we’ll be interested to see what that looks like in year or in month 15 after that period of kicking it off. Then we’ll also be monitoring that for years two and years three. That's when the revolution or the rotation of that program really takes effect and have a true analysis of how things are going. We have many things being considered between now and then relative to how we would make our program functioning very well for the city and the cost savings to our participants, so we're looking forward to introducing some of those to our employees along the way. \r\n\r\nThe last bullet on this page are personnel requests. We did defer those until first quarter of 2026. Again, as mayor alluded to, we're going to take that period to look at the first quarter results and compare activities relative to our budget and those particular requests that were made. Councilmember David McClain said, Mr. Purtee, just a couple of questions on this first page, if you don’t mind. I want to make sure I say this, I don't want Keith to print that I, you know, I think city employees don't do a good job. I think they do a good job. But my questions, so the step raises, the salary adjustments, excuse me, annual step, cost of living, 4% COLA for those who are not eligible for the step or the cost of living. When we look at those, those are given out as a blanket. There are no metrics as far as I can do a really good job, I can do a needs improvement job, and I still get the step increase or my cost of living. Director Steve Purtee said, that is correct. Councilmember David McClain said, Ok. Ok. Director Steve Purtee said, all full-time employees will receive that total 4% increase. Councilmember David McClain said, alright. Have we considered, especially with us looking at first quarter, we're going to defer things to the first quarter to make a decision as far as personnel. Have we looked at, and I guess what jobs have we looked at maybe to outsource? Are there things that we can outsource that make, maybe make the jobs more efficient? Have we looked at that as a whole, not just in certain departments, but as a whole? Director Steve Purtee said, I expect that that will be part of this first quarter review specifically to look at, maybe if the addition of new personnel or they asked or requested for that, or how we could further support that same ask with outside services or to that effect. So, yeah, I think that would be part of that first quarter review as well. Councilmember David McClain said, I didn't know if there's been any discussion about that, right, going especially the last year, if there’s things that… Mayor Harold Copenhaver said, councilman, if I can, yeah. councilman had mentioned that earlier, and yes, we had started some internal processes because some of them overlap at different departments. And so, we want to make the most efficient way we can. But yeah, I think we're seeing the move more to external entities being involved in providing city services because the cost effectiveness is really getting hard for us to control. So, yes, those are being made. Councilmember David McClain said, that's all on this page. \r\n\r\nDirector Steve Purtee said, on our second slide here, which we call this page two of overview of appropriations. As you recall, we did issue our franchise fee revenue bond. We'll have some more information on the details of that a little bit later in this presentation. That does afford us $17,500,000 in capital improvements, which will occur over the next three budget cycles. You’ll recall that that includes a construction of an E-911 Safety Center, expansion of our Caraway Road, South Caraway Road street, and then pedestrian trail connections as well, which have been ongoing, of course. Additionally, we'll have $3,000,000 in a specific appropriation that will be part of 2025 results that is a function of the first event or activity of this new budget. And this is specifically for overlay and street improvements. And so that is an appropriation there. In addition to that, $250,000 will be appropriated for to further being ADA compliant with sidewalk improvements, and that is in response to a lawsuit from several years back that we have continued to provide support relative to that judgment. $1,100,000 of our budget is for recurring capital improvement, miscellaneous drainage improvements, industrial rail activities, the maintenance program out there, and then our economic development there as well. Capital improvement carryover funding, you'll recall that in our monthly financials, we provide a review of this, and this is reflected on page 12 or 13 of our budget package that you have as well. There's $18,700,000 in total funding that it was available for 2025. Nearly $6,000,000 of that was spent in 2025, and then $11,100,000 is remaining in that appropriation for future projects. Again, that project details is listed in the budget binder. We provide a monthly report of that in our monthly financials in there as well. So, you can kind of track the activity as it moves along in the calendar year relative to that fund. Also, in addition to that, we’re appropriating $4,400,000 for our depreciation fund. This will allow us to acquire 37 fleet vehicle replacement units. Again, this is not an expansion of our fleet. It's a replacement of existing units that probably have been needing replacement for quite some time. 25 of these units will be specific for our Police Department, and out of that, 37, we had a request for 52 fleet unit replacements, and again that it's a process of monitoring and managing that purchase to accommodate what we think we can appropriate in our budget, and that's what this includes here. Very specifically, that's $2,500,000 for two new fire apparatus units. I think your earlier actions have forwarded that actual purchase on to City Council for their review and approval. This budget includes our second installment toward that purchase, $625,000. This will give us about $1,250,000 of that total spin there. Our very generous partners, City Water and Light has agreed to fund the remaining $1,200,000 over the next two budget cycles. Christy Wall shared with me earlier that that first installment has already been received. It’s actually settling today as we speak. So we appreciate our partner helping us with this. They have fulfilled their commitment for that first $600,000 request, and we know that they will are planning to do that as well in the early part of 2026. So we very much appreciate that. The very last item here is this $4,400,000 does include maintenance equipment replacement. And again, we go through the same process for our fleet equipment, we do that, you know, review an analysis of our maintenance equipment to provide that funding as well. Thank you Miss April. \r\n\r\nCouncilmember David McClain said, Mr. Purtee, just real quick on the overlay and street improvements. I guess as a whole, looking at different projects, but right now I’ll stick to the overlays and street improvements, as well as sidewalks. Is how do we prioritize those? Where do we, where do you guys come up with and I guess that's a probably a Craig question. But, just curious how we prioritize those. Chairman Joe Hafner said something off mic. Councilmember David McClain said, I thought so, but I was trying to make sure I know for sure. Engineering Department Director Craig Light approached the podium and said, well, several years ago, we did an inventory of our sidewalks and of our roadways to get a condition assessment on those, particularly on the roadways. We began a running list about three or four years ago that started out with about 5,000,000 worth of projects that needed attention or roads that needed to be overlaid and we’ve been working our way through those. We get phone calls from people that ask us to specifically look at those roads, and we put those on list to go look at. We weigh those, on putting them on the list, compared to other roads that we have in our system. But, it primarily comes to where Street Department is spending most of their energy and time. If they're spending a lot of money patching potholes on a specific road, and they're losing the road, then those are the ones we prioritize for getting fixed. So that's kind of the way we do it. We, Engineering, Street Department, a long with the mayor’s office, finalizes the list, that we submit. It's usually in the advertisement that’s provided to the City Council when we do those for the annual bids for the overlays so you guys get to see those list and what roads are on there. We can provide the list, the running list, that we have right now. But generally, you know, we had a presentation when we had the inventory done three years ago, four years ago now, I mean, he said we should be spending about $3,500,000 a year on overlays. You're going to get about 12 or 15 years of service life out of a roadway, and we're still at $1,000,000 to $2,000,000 a year. So we're losing our roads faster than we're putting them back. Mayor Harold Copenhaver said, we have been making appropriations for those. Director Craig Light said, so, that’s the reality of it. So, in terms of prioritizing them, truthfully, we need more funding for roadways. And the $3,000,000 that's allocated this year is between overlays and roadway improvements. So there's other projects that we have on our list that we feel like we need to do for pedestrian crossing at Southwest Drive and South Culberhouse that we’re finishing up the permit drawings for that right now. There's some other pedestrian crossing works, roadway works that we have in our pint. Traffic calming speed tables are coming out of that same $3,000,000. So there's other projects it’s not all just overlays in that $3,000,000 as well. And in this coming year, we'll be doing the work patching the roads, relaying the roads that were part of City Water and Lights project for their Sanitary Sewer Project, so they will be reimbursing us a percentage of that as well. So hopefully we'll get some more money in to help supplement our overlay program this coming year. Councilmember David McClain said, do you have the same type of list for drainage? Director Craig Light said, we do. We have a list of drainage projects. Running totals about, if you take out our master plans, it’s about $15,000,000 in drainage projects, that I think this year we have a $500,000, or it looks like we’ll get $500,000 this year for drainage projects, this coming year. So we'll start working through the ones that we can fund with those and just chipping away at it. \r\n\r\nCouncilmember David McClain said, Mr. Chairman, I appreciate you letting me have some time to talk. I think the overwhelming thing I heard, not only now, but then also from the meeting on Friday, I mean, obviously I wasn’t here, but at the same time, I went back and watched. I heard some conversation around the impact fees, and I know that we aren't discussing that now, but at the same time, we've got a vast need. Are we, how close are we, where are we in that process? Chairman Joe Hafner said, I think Derrel said early next year on the report coming back. Councilmember David McClain said, early next year? Chairman Joe Hafner said, yeah, like 2026. Councilmember David McClain said, ok. Thank you.\r\n\r\nDirector Steve Purtee said, this slide here, again, I just want to give an overview of our franchise fee revenue bond. Again, you'll recall that we issued that bond at $17,595,000 in par value. Simply, that's the amount that will be repaid once all of the principal and interest payments are made. At the conclusion of that final maturity on 08/01/2055, it does have a prepayment clause for the first seven years, after that it could be refinanced, paid off early, that debt could be retired in whatever manner that the city would see fit and our Council would approve relative to that. Our annual debt service, which is coming out of our franchise fee revenue is $1,147,100. We are funding that on a monthly basis and our first payment on that obligation will be in August of 2026, so we are already funding it incrementally through the year. Our project appropriation, you'll recall this probably without me having to go through it, but that was $16,000,000 in appropriation. We had $5,500,000 of that for the Public Safety Center, and an additional $5,500,000 for Caraway Road expansion, and then $5,000,000 for pedestrian trail connections. You can see the activities for 2025, we wanted to provide that. We've earned about $260,000 in interest, or will have at the conclusion of 2025. We've committed expenditures, either spent or committed $1,400,000 to these projects. And the available funding is about $1,600,000. So that $1,600,000 could be utilized to either expand on these current projects, do similar projects that are in the same categories, or simply support cost increase that might be occurring along the way as well. \r\n\r\nOne item in our budget is, Mr. Ronnie Sturch director of our E-911 Center, he also gives oversight of our tornado siren program. We appreciate his work in that. Our siren system is in need of upgrade to a digital radio system. And then the system expansion, he has asked for four additional sirens to cover service area that is currently not within the area of our coverage today. These total expenses are about $260,000. This will go against our $582,000 balance remaining in our restricted revenue replacement fund or formally we knew it as the ARPA fund. Since we fully satisfied all of our commitments relative to having them committed by the year end 2024, having them spent by 2026, we did use the remaining balance of that funding and put it in our replacement fund, which was permitted by the state and local federal government relief fund, and then we were able to do that. So, if we do this appropriation, which eventually will be approved by City Council through a resolution approving a contract, we would have about $320,000 left in that fund. So, this would be coming back for further evaluation by City Council. \r\n\r\nOverview of our reserve analysis, you can see the total fund balance projected at year end 2026 for a total just under $30,000,000. We have just under a $10,000,000 reserve requirement, which in the bottom footnote indicates that represents 15% of our general fund budgeted expenditures. This will leave us with about $20,000,000 in unappropriated reserves. We try to look at this in the reserve categories as to how much coverage each bucket has. 1.8 months of coverage will be sustained by our minimum reserve requirement, and you can see also that the AML and the Government Finance Officers Association recommends one to two months of coverage, so we are in that window there. The remaining unappropriated reserves will provide $2,000,000 of coverage, and then our total reserve coverage is about 3.8 months. \r\n\r\nThe next three slides is just really an overview of revenues and expenditures. I'm not going to go into those details. Again, the only thing I'll point out is the franchise fee revenue is about $1,200,000 less than the previous year budget. We do know, obviously, that $1,147,000 represents the payment on our bond. The other thing that you'll notice through these slides is 70, roughly 68% of this revenue comes from sales tax, both the county and the city sales tax. In our expenditure categories nearly 60% of that is supporting our public safety sector and so we show you that as well. Our forecast in specific revenue buckets is looking at the run rate of the current year applying a 2% increase for the next budget year, so that’s basically what you're seeing here, relative to these categories. Go ahead, Miss April, we’ll go through these. Councilmember David McClain said, can you say, I'm sorry Mr. Purtee, you said the run rate is for, say that one more time. Director Steve Purtee said, how we forecast our revenue budget is we look at the run rate of the current year and then we forecast a 2% increase in addition to that. Councilmember David McClain said, ok, so, I guess, on the sales tax, we stay, it looks like we had no difference. Director Steve Purtee said, and that excludes sales. Councilmember David McClain said, ok, all right. I was curious because it says zero but okay. All right. Director Steve Purtee said, this is just the slide that’s basically showing our protection services is about 60% of our budget. That's all of the comments that I have for the committee. ","EventItemActionId":406,"EventItemActionName":"Recommended to Council","EventItemActionText":"A motion was made by John Street, seconded by Brian Emison, that this matter be Recommended to Council . 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Councilmember David McClain said, one question real quick, Mr. Chairman. Mayor, I was just looking at, says you got the chief administrative officer, chief operations officer, chief of staff. Do you plan to fill this sometime soon, or is that a... Chairman Joe Hafner said, I think those are just in the plans. Chief Administrative Officer Brian Richardson approached the podium and said, those are just approved job titles of the city plan not paid job titles. You’ll see all sorts of stuff in there that doesn’t exactly exist but they’re just titles at some point in time they’ve been created. Councilmember David McClain said, ok. Mayor Harold Copenhaver said, there is no plan to fill that. Councilmember David McClain said, ok, got it, ok. ","EventItemActionId":406,"EventItemActionName":"Recommended to Council","EventItemActionText":"A motion was made by John Street, seconded by Brian Emison, that this matter be Recommended to Council . The motion PASSED with the following vote.","EventItemPassedFlag":1,"EventItemPassedFlagName":"Pass","EventItemRollCallFlag":0,"EventItemFlagExtra":null,"EventItemTitle":"A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF JONESBORO, ARKANSAS TO AMEND THE CITY SALARY AND ADMINISTRATION PLAN BY INCLUDING UPDATED PAY RANGES, JOB TITLES AND GRADES","EventItemTally":null,"EventItemAccelaRecordId":null,"EventItemConsent":0,"EventItemMoverId":164,"EventItemMover":"John Street","EventItemSeconderId":964,"EventItemSeconder":"Brian Emison","EventItemMatterId":25784,"EventItemMatterGuid":"5EFB6644-48AF-4418-A2E7-77FF2891FBF8","EventItemMatterFile":"RES-25:197","EventItemMatterName":"AMEND THE CITY SALARY AND ADMINISTRATION PLAN BY INCLUDING UPDATED PAY RANGES, JOB TITLES AND GRADES","EventItemMatterType":"Resolution","EventItemMatterStatus":"Passed","EventItemMatterAttachments":[{"MatterAttachmentId":43567,"MatterAttachmentGuid":"A6F06FA8-2CF8-423F-A54A-7AD03848E571","MatterAttachmentLastModifiedUtc":"2025-12-04T16:53:25.19","MatterAttachmentRowVersion":"AAAAAADXVKU=","MatterAttachmentName":"Revised Pay Grades & Salaries effective January 2026.pdf","MatterAttachmentHyperlink":"https://legistar.granicus.com/Jonesboro/attachments/9bdcca44-4bcb-4ed4-a7bd-1c62acf3d889.pdf","MatterAttachmentFileName":"9bdcca44-4bcb-4ed4-a7bd-1c62acf3d889.pdf","MatterAttachmentMatterVersion":"0","MatterAttachmentIsHyperlink":false,"MatterAttachmentBinary":null,"MatterAttachmentIsSupportingDocument":false,"MatterAttachmentShowOnInternetPage":true,"MatterAttachmentIsMinuteOrder":false,"MatterAttachmentIsBoardLetter":false,"MatterAttachmentAgiloftId":0,"MatterAttachmentDescription":null,"MatterAttachmentPrintWithReports":false,"MatterAttachmentSort":-2147483648}]},{"EventItemId":84777,"EventItemGuid":"3622E12A-8053-4226-AAE0-A84B49FEA94F","EventItemLastModifiedUtc":"2025-12-17T20:05:11.65","EventItemRowVersion":"AAAAAADXlyw=","EventItemEventId":3845,"EventItemAgendaSequence":31,"EventItemMinutesSequence":31,"EventItemAgendaNumber":null,"EventItemVideo":223333,"EventItemVideoIndex":1021,"EventItemVersion":"1","EventItemAgendaNote":null,"EventItemMinutesNote":"Councilmember David McClain said, Mr. Chairman, I’ve got a couple questions. Brian, maybe you can speak for the administration. The plans for this area. You think we’re going to have police, fire, which one or both? Chief Administrative Officer Brian Richardson approached the podium and said, so you know, in conversations with the donators and also, as we kind of look at the growth patterns that have been out in southwest Jonesboro for quite some time now, what we're going to do, if this is accepted, is pursue funding for probably most immediately some sort of, you know, tornado shelter, severe weather shelter. We've looked at some options, and actually even talked with some of our federal delegation about what that funding process looks like, and, you know, how likely that might be. In addition, you know, maybe that is also a tornado shelter/fire station or a police substation. There's obviously a lot of people that live out there. Currently, Valley View schools is outside of our, you know, four-minute response time that we strive for in the Fire Department. It gives us an opportunity to preserve what's a pretty valuable piece of land in a fast growing area for future use. And, you know, right now, there's some buildings on it. I'm not just super confident that those could be just immediately turned over into something. I'm sure there’s probably some salvageable component to that that might fit into this. You know, we just, we would need to do some additional studies on that, but the fact of the matter is that it provides us the opportunity should we choose, and should we be able to find funding, I guess over the next seven years, to be able to build some assets out there. I think it'll be a community safety benefit. So, you know, there's no guarantee on the table that we're going to go out tomorrow and spend $7,000,000 on a building or $2,000,000 on a building. I think we're just thankful for the opportunity to have a chance to preserve this land and kind of do some further research and see, it fits the needs of our long-term goals to provide public safety in that area. And, you know, I think those goals are pretty widely stated, you know, in the lates fire report, that we have a need out there. You know, Jonesboro continues to grow, I think we're anticipating 3,000 or 4,000 additional rooftops out there in just the next three or four years. And again, this gives us an opportunity to serve those people with the kind of public safety that we strive for. So, you know, as far as any information about the actual land beyond just what the city’s intent would be, or the stipulations, I think there’s representatives here from Blazer Holdings that could probably answer any of those questions, but happy to answer whatever else I can. Councilmember David McClain said, well, mine was more, what do you guys see, how we're going to utilize it? I mean, are we going to use it for police or fire? But I guess we've got to do some more digging to figure out. It's like you said, there's some buildings out there, I know they got, I mean, they're outfitted, they got water, sewer, etc. But does that meet what fire or police would need in terms of, I mean, you'd have to outfit it for what they need, but. Brian Richardson said, yeah, I mean, I think that it would only be fair is what we consider is that, you know, we would probably look at it from a blank slate approach. Anything that we could salvage would be great. I mean, there's some good assets on that property. But not being an architect or engineer or anything like that, I don't know what all is reusable out there, and sometimes it just easier to start from a clean slate. And, you know, I suspect that if you're dealing with a safety shelter, you're talking about something from a clean slate anyway. I would anticipate that barring some surprise that you would talk about removing everything from that property and building something brand new. \r\n\r\nCouncilmember John Street said, I’d just like to thank Caroll Caldwell for his generous donation to the city, and the whole group. That's appreciated, it is. Chairman Joe Hafner said, yeah, thanks guys. ","EventItemActionId":406,"EventItemActionName":"Recommended to Council","EventItemActionText":"A motion was made by John Street, seconded by Brian Emison, that this matter be Recommended to Council . 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Joe Hafner said, I just want the record to reflect that Councilmember John Street had to leave at 5 o'clock. \r\n\r\nMayor Harold Copenhaver said, Mr. Chair, I think really the main comments here from the mayor's office is that we want to keep the community and City Council in full regards of how the process is going if we move forward. Obviously, we invested a tremendous amount of ARPA funding in that lot. And with that, then whenever the opportunity on negotiations would come forth, I made Council aware that we would bring those opportunities to this committee and hopefully move forward to Council so that discussion can be moved forward. We do have an offer on the table for, what is it, Brian? There are six separate lots in that area, and we do have an offer on the table. This is what this presenting of three of those lots. And the individual has made an offer to the city. Brian, if you want to speak a little bit more of particulars on that, feel free to do so. Chief Administrative Officer Brian Richardson approached the podium and said, as the mayor indicated, we received an offer, and obviously this has been a very public discussion in one way or another for, I guess, the better part of two decades. So, you know, earlier this year, I mean, obviously, we completed the demolition of that property and just felt that it was in the public’s interest to have just an open conversation here at Finance about this offer. Just a point of note, you know, this is a matter of ongoing litigation, so, you know, I don't think that limits what we can or can't talk about here, but I just wanted to put that out there. Of course, this effort, if approved and moved on to full Council and then approved by Council, would end that. But so, just to clarify one thing that may or may be clear in the resolution, I think that we all understand that this is only for the Laurel Park Holdings that are on the improved area here on Main Street. I have no idea if Laurel Park owns property somewhere else in the state, but just a clarification that that is only, we're only offering or we're only being offered to purchase what’s in the sales contract, which is for those three lots on Main Street or Washington. You know, some of the things that we, I guess, need to talk about are also for public education and the fact that after the demolition of the building, we put a $3,250,000 lien on the parcel where the tower is. You know, a lien doesn’t mean that you get the property. A lien just means that there's a holding against the property that could be collected at a later date through certain triggers. One of which, if the property sells then you can help recoup some of that funding. The lien is not on the entire property. It's only on the one parcel where the tower was, and that parcel, you know, we're estimating that in a recent appraisal to be somewhere around $300,000 on the free market, maybe more, maybe less, but I think that's a good ballpark for what that piece of property is worth. And I do think we've been pretty clear from the Council, the city attorney, the mayor, that there's probably no path that immediately restores that $3,000,000 that was ARPA funding, and I think that we understand that whenever that action was taken, it was a public safety measure and it had to be done. It was to reopen Main Street and to remove a public safety issue. As we kind of move forward that, I don't think there’s a decision that we could possibly make that magically makes all that money pop up, so really, we're kind of thinking about, what's the best long-term solution to recovering that funding into you making that property developable? And really, when you think about it, I guess there's probably about four different options that we could consider. One, would be we just continue our path towards litigation in defending the lien. We're going to incure legal fees during that time. You know, if we win, we place a lien on piece of property on the parcel where the tower was, and then we deal with it then. The other would be that we continue the path that we're on, and we lose, which is certainly a possibility anytime you’re dealing with the court. So then, we’ve got legal expenses, we're possibly having to pay other legal expenses and there's no lien on the property. I think both of those cases are probably months to years of most likely inactivity on that property while that all gets sorted out. And, you know, it's an option. The other would be that we purchase the property and then just turn around and sell it to a developer, free of a lien, and that property gets developed. Most likely. If we want to talk about any type of stipulations that we might put on that, that would be a conversation to have at that time. I do think that we probably got a marketable piece of property, you know, especially if you take the lien off of it. And the fourth would be that, you know, we purchase the property and develop it as a city asset. You know, whether that be a green space, whether that be any type of holding for whenever that property escalates to a value in which it might merit development. You know, I think that's certainly an option, and if we pursue that option then I guess another portion with that would be purchase the rest of the property on that lot and make it a bigger asset. So that's kind of where we're at on this. This is an offer to help start kind of clean up that process. It's started really long time ago. I think there's some representatives from the Laurel Park here that could probably answer any questions about specifics you have on the offer. But again, kind of a presentation to see what we want to do in the future. \r\n\r\nCity Attorney Carol Duncan said, I just wanted to say that I think that the attorney for Laurel Park is available online. He couldn't make it over here today, but he's available. I believe via Zoom. He's somewhere on the internet available. I mean, I'm here to answer questions if you have them, but… oh, never mind. He just left. He's no longer online. He's no longer available to answer any questions. Chairman Joe Hafner said, he had to leave at 5 O’clock also. City Attorney Carol Duncan said, he did, actually. That was part of the problem.\r\n\r\nCouncilmember David McClain said, Mr. Chairman, I do have a question. Brian, there said we had a recent appraisal. I didn't see it attached. Maybe I missed it, but how did they come to $71 per square foot? Brian Richardson said, Preston Kane did that appraisal when we were gone through the lien process. I can’t remember what exactly that came about for, but we did request an appraisal. I can send that to you. It should be on Legistar somewhere, because we used it for some other kind of city action. I can't remember what it was, but I can certainly send that to you. I don't know how they came to a value of $71. I will say that, you know, sometimes I guess that the most applicable comp is what the property sold for a few years ago, right? I think that Laurel Park LLC bought that property for somewhere around $500,000 for that parcel. I think all together for the three parcels, they paid somewhere around $920,000. So you know, circumstances are different, but I would say that between the appraisal and, you know, past purchases or that property, I think it gets us in a ballpark. And he knows what it actually brings if it's on a private market. Councilmember David McClain said, I don't think it would bring $71 a foot. I think the most… I mean, there's nothing in Jonesboro for that price. I don't even know if there's anything in the state for that price. That's $71 a foot. I could be wrong, I hope you prove me wrong, but at the same time I just think overpaying for something just because if we're afraid of litigation. I mean, I just think that wouldn't be a good use of folks money. I mean, I struggle with that. I don't see how. I mean, do y'all have a reservation that we're going to go to some long drawn out, $4,000,000 or $5,000,000 court expenses, and settlement and all that stuff. I mean, what I, just $71 a foot is just astronomical. City Attorney Carol Duncan said, I'll say two things. Number one, apparently the internet kicked Matt out. He's trying to get back in so that he can answer questions. I got a text from him right as they were saying he's gone. And number two, I mean, I do expect litigation to be long and drawn out, if it occurs. Yes. I mean, I think that goes without saying. And nothing moves fast in court anymore. Councilmember David McClain said, did we counter? Brian Richardson said, we've talked to the, Mr. Smith Property owner, as of the last minute, as Miss Leggett can attest to getting this sent int for the agenda. This is the offer that was presented. And to your earlier point, I'm not a price speculator. I'm not an appraiser. All I can go off is the information that we requested and you know, off of past sales. So, that's the offer on the table, and it’s the best information I had to provide on if that's an accurate price. Chairman Joe Hafner said, let me ask this question. What's the timeline that we would be... Is there a deadline like we need an answer back by this date or the offers off the table? City Attorney Carol Duncan said, my understanding, and Matt’s here so I'm sure he can speak to that, is the end of the calendar year for tax purposes. But I’ll let Matt speak to that. Can you hear us Matt? \r\n\r\nLaurel Park, LLC attorney Matthew Coe joined in by Zoom and said, yes, that is correct. Yes, I can. Can you hear me? City Attorney Carol Duncan said, you’re a little quiet, but we can hear you. Now we have you. Matthew Coe said, ok. Yeah, it's my understanding that the deal has to closed by the end of the year. I think the contract said the closing was December 29th, if I read that correctly as far as the proposed real estate contract. So yes, it would need to close by the end of the year. Chairman Joe Hafner said, I mean, do you think, Carol do you think there would be a way to… As Brian mentioned, one of the things here is the big unknown is legal fees. And you know, not just from our side, but you know, if we win or lose, you know, potentially their side. Is there a way to estimate those at all? Like… City Attorney Carol Duncan said, no, I mean, it depends on how long litigation takes. So, there's really no way to estimate those. Chairman Joe Hafner said, I almost wish we had a little bit more information. City Attorney Carol Duncan said, I don't think anybody can estimate the legal fees of what it would take to continue the litigation. I mean, they can estimate an hourly rate, but nobody can estimate how many hours it's going to take to get to the conclusion of litigation. On both sides. Chairman Joe Hafner said, I'm just sitting here trying to think of next year. I mean, like the year end. I don't know their tax situation, but I'm just trying to go through in my head, like, why do they have to have it done this year? City Attorney Carol Duncan said, Matt might can answer that. I can’t answer that question. Chairman Joe Hafner said, is there anybody in here that that could say why it has to be done this year and can't carry over into next year? Because I guess, just from my perspective, I would like to... \r\n\r\nCEO of Halsey Real Estate Jerry Halsey approached the podium and said, I can tell you that you. When I spoke with him, he has some opportunities to do some offsets, and he will not have that come 2026. And he just said this was an opportunity for him to take less money than what he's paid for it. And basically pay his legal fees and move on down the road. So this is the least he can take and still not have a huge loss. Chairman Joe Hafner said, thank you for that information. Councilmember David McClain said, real quick, so you mean, as far as what he paid, he’s paid $495,000 then what he’s paid as far as… Jerry Halsey said, he’s paid $495,000 for that lot. Councilmember David McClain said, correct, yeah, correct, correct. Jerry Halsey said, and then you’ve got two other lots that’s going to be bought, and I think he's got about $920,000 in all three lots. Plus the legal fees, plus lost income. Chairman Joe Hafner said, the $360,000 or whatever, that was just that one parcel, right? Jerry Halsey said, the $307,000 was the one lot. Chairman Joe Hafner said, it was like, for one, he paid $215,000, and then he paid $210,000 for another one, and $495,000, so it's total of $920,000. So, I mean, from my perspective, the thing that concerns me the most is the unknown legal fees and the unknown if you go to court and you lose, then you're paying... City Attorney Carol Duncan said, and that's going to be an unknown. I mean, there's no way to predict that. Chairman Joe Hafner said, yeah, that's, I mean, the $750,000’s less than the $920,000 he paid for them. Jerry Halsey said, just a thought, if you move this on to Council, it gives you another week or so to vet it out. You kill it tonight, and I mean, it is done. It just stops. I'm just trying to keep it alive. You made the comment, you wish you had a little bit more information, and if you push it down the road just a little bit, it might give you an opportunity to get some more of that information. Chairman Joe Hafner said, that's a good point. City Attorney Carol Duncan said, other than an estimate on legal fees, because I'm never going to have the answer to that question. Jerry Halsey said, well, I can just tell you, they won’t be cheap. Chairman Joe Hafner said, yeah. Well and honestly, I mean, to me, you know, this is something I wish, I would like the whole Council to be able to have input in. I don't think it's, you know, us four sitting here. Councilmember Brian Emison said, I agree. Councilmember David McClain said, I mean, I hear you. I just, I think it's… And then, because we've also spent money on this. We’ve spent time and money. I mean, we spent, what, over $3,000,000. I mean, I understand what he's saying, but at the same time, we’ve spent money as well. I mean, we'd be in this for a lot, and I just don't see… I don't even think… I’m out whether we forward or not, but that's just me. So I mean, y'all do for yourselves, but this is my money, I'm not doing it. Chairman Joe Hafner said, yeah, I guess my only thought would be I would like for the full Council to be able to consider it. I'm not saying I'm in or out either. I'm saying. Councilmember David McClain said, yeah, I understand. Councilmember Brian Emison said, and I'll speak to this. I'm on the same fence as Joe’s on. I mean, we saw from the legal perspective how this played out in the past with this particular piece of property. And I mean, if we're talking about, like, this thing going through years and years of motions and discovery and judges' chambers and everything else. How much does this add up to? Does $700,000 end up being a discount at this point? City Attorney Carol Duncan said, well, I think it's important to note that Laurel Park and Bruce Burrow's legal issue is still not over. It's on appeal. It just doesn't affect this. But parts of it are still on appeal, so you have to factor in even if we were successful or they were, you know, then the appeal as well. Which I would anticipate would be coming. Councilmember David McClain said, explain how does that, how could we cleanly purchase this? City Attorney Carol Duncan said, well, because it doesn't affect the land. They’re still litigating whether money's owed between the two of them. Councilmember David McClain said, got it. City Attorney Carol Duncan said, I think Matt can speak to that more, but that's my understanding what's still being litigated. Is that correct Matt? Matthew Coe said, that's correct. City Attorney Carol Duncan said, so it doesn't affect the property itself, but they’re still in litigation over, ultimately, the building that once was. \r\n\r\nChairman Joe Hafner said, it shows majority of the committee. There’s seven on the committee. City Clerk April Leggett said, it shows it passed. City Attorney Carol Duncan said, let me look at your rules. I don’t remember. Councilmember Brian Emison said, if we would have been the only ones to show up that would still stand wouldn’t it? Chairman Joe Hafner said, well, I mean, John's no longer here. The record would reflect that John's no longer here. City Attorney Carol Duncan said, y’all are asking me to decide, you got to give me a minute to look. If y’all think y'all are good, you can go ahead. But if you want me to tell you, I got to work. I want to look at your rules. Chairman Joe Hafner said, in case you’re wondering what we’re doing, she’s seeing if the vote passed or failed with the number of people here. City Attorney Carol Duncan said, committee rules are different. Ok, the rule says that a majority of the committee shall be necessary to constitute a quorum to do business. The concurring vote of a majority of those attending a meeting, providing a quorum is present, shall represent the act of the committee.","EventItemActionId":406,"EventItemActionName":"Recommended to Council","EventItemActionText":"A motion was made by Brian Emison, seconded by Ann Williams, that this matter be Recommended to Council . 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