HomeMy WebLinkAboutOrdinance 4683 ORDINANCE NO. 4683
AN ORDINANCE AMENDING THE PROJECT PLAN FOR
THE HIGHWAY 71 EAST SQUARE REDEVELOPMENT
DISTRICT NUMBER ONE, AND FINDING THE PLAN IS
ECONOMICALLY FEASIBLE
WHEREAS, on July 27, 2004, the Fayetteville City Council held a Public
Hearing concerning the creation of the Highway 71 East Square Redevelopment District;
and
WHEREAS, on August 17, 2004, the City Council passed Ordinance No. 4608
creating the Highway 71 East Square Redevelopment District and authorized preparation
of a Redevelopment Project Plan; and
WHEREAS, the City with input from the proposed redevelopers of a Twenty-
Two Million Dollar hotel project to be constructed after removal of the blighted
Mountain Inn has prepared a proposed Project Plan; and
WHEREAS, on November 30, 2004, the City held a Public Hearing on this initial
Project Plan proposed for the Redevelopment District; and
WHEREAS, on December 7, 2004, the City had a further public hearing on this
Project Plan and passed Ordinance 4646 adopting the Project Plan; and
WHEREAS, because of a minor, technical notification discrepancy, the City
determined the need to renotify all statutorily required officials and republish notice of
the public hearings for the Redevelopment District; and
WHEREAS, the City Council after 15 day published notice held another public
hearing on December 28, 2004 at which all interested parties were given the opportunity
to express their views on the proposed adoption of the Project Plan for the Highway 71
East Square Redevelopment District Number One of Fayetteville, Arkansas; and
WHEREAS, the City Council adopted this Project Plan on December 28, 2004
by Ordinance No. 4663 ; and
WHEREAS, the Arkansas Attorney General in January 2005 has opined that the
25 mills required by Amendment 74 to be sent to the State may not be used for tax
incremental financing; and
WHEREAS, removing the 25 mills from the tax increment requires amendment
of the Project Plan; and
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WHEREAS, the required fifteen day statutory notification of taxing entities and
two publications of notice of the intent to amend the Project Plan have been
accomplished prior to the public hearing for the Amendment to the Project Plan on
January 25, 2005 ; and
WHEREAS, the Amendment to the Project Plan complies with all statutory
requirements of A.C.A. § 14-168-306 and 307.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF FAYETTEVILLE, ARKANSAS:
Section 1 : That the City Council of the City of Fayetteville, Arkansas hereby
finds that the Amended Project Plan for the Highway 71 East Square Redevelopment
District (attached as Exhibit A) is economically feasible.
Section 2 : That the City Council of the City of Fayetteville, Arkansas hereby
adopts the Amended Project Plan for the Highway 71 East Square Redevelopment
District and determines it has complied with all requirements set forth in A.C.A. § 14-
168-306.
PASSED and APPROVED this 15th day of March, 2005 .
4$&. @ • • • SG%, APPROVED:
FAYETTEVILLE •
.� By: j&4 ;
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D COOD , ayor
ATTEST: t o o *N0 6J�,.
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By:
S NDRA SMITH, City Clerk
City of Fayetteville, Arkansas
HIGHWAY 71 EAST SQUARE
REDEVELOPMENT DISTRICT NO . 1
PROJECT PLAN
As Amended by
AMENDMENT No. 1
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March 2005
Table of Contents
Page
Project Plan as Amended by Amendment No. 1 1
Exhibit No. 1 Ordinance No. 4608 And 4662 Creating The District 17
Exhibit No. 2 Ordinance No. 4673 Modification Of The District Boundary 24
Exhibit No. 3 Ordinance No. 4646 And 4663 Adopting The Project Plan 28
Exhibit No. 4 Resolution No. 19-05 Authorizing Preparation Of Bond Documents 34
Exhibit No. 5 Detailed Locations of Sidewalks And Pedestrian Crossing 37
Exhibit No .6 Washington County Assessor's Certification 55
Exhibit No. 7 Arkansas Code Annotated 14-168-301 Through 14-168-323 79
Exhibit No. 8 Existing Conditions / Land Use District Map 93
Exhibit No. 9 Existing Conditions Of Blight 95
Exhibit No. 10 Financial Feasibility Study 102
Exhibit No. 11 Financing Strategies And Bond Structure 142
Exhibit No. 12 Local Demographics
Exhibit No. 13 Downtown Master Plan
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CITY OF FAYETTEVILLE, ARKANSAS
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
PROJECT PLAN
AMENDMENT NO . 1
BACKGROUND
In light of the probable reduction in the amount of millage that can be included for the
incremental financing of the original Project Plan, the plan has been amended so that only
Phase I of the original Project Plan can go forward and be financed at this time. The
original Phase II, of the project plan, has been deleted. A new project has been added to
repair, replace, and connect sidewalks and construct a pedestrian crossing. This
additional project can be funded from the sale proceeds from the property the
redevelopment district will sell to redevelop the Mountain Inn site.
The original boundary for the Highway 71 East Square Redevelopment District was
adopted by the Fayetteville City Council on August 17, 2004 and again on December 28,
2004 due to required additional notification (see Exhibit No. 1 ).
The City Council, on January 25, 2005, modified the existing boundaries of the Highway
71 East Square Redevelopment District No. 1 by Ordinance. No. 4673 to include
additional areas that are located within the Downtown Master Plan (see Exhibit No. 2).
The project plan was first adopted at the December 7, 2004 City Council Meeting and
readopted at the December 28, 2004 Special City Council Meeting due to additional
notification requirements ( see Exhibit No. 3).
The Project Plan is specifically designed to benefit the redevelopment district in the
removal of designated blight coupled with the reinvestment in infrastructure to benefit the
redevelopment district area and the City of Fayetteville as a whole. The geographical
boundaries of the Highway 71 East Square Redevelopment District, as amended, are
illustrated on the next page:
City of Fayetteville, Arkansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT NUMBER ONE
PROJECT PLAN AS AMENDED BY AMENDMENT NUMBER ONE
Amended
Highway 71 East Square CA I
Redevelopment District No. 1
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City of Fayetteville, Arkansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT NUMBER ONE
PROJECT PLAN AS AMENDED BY AMENDMENT NUMBER ONE
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The Highway 71 East Square Redevelopment District Project Plan outlines the public
purposes and investments in infrastructure that are targeted for the redevelopment district.
The purpose of the district is to encourage the commercial and residential redevelopment
of real property, thereby preventing the spread of blighted, deteriorated and deteriorating
areas, and discouraging the loss of commerce, industry and employment.
The Project Plan, once adopted, may be amended over time by the Fayetteville City
Council in order to ensure that the return to the public is invested in a manner that will
ensure economic vitality in the district, as well as the district's impact on the City of
Fayetteville.
The project plan contains two projects and includes proposed financing for both projects:
• Project No. 1 - Process Of Removing Blight In The Former Mountain
Inn Area -Catalyst Project (Funding: Bond Financing)
• Project No. 2. -City Sidewalk And Pedestrian Improvements — Repair
And Replacement Of Existing Sidewalks, Pedestrian Crossing, And
New Sidewalks To Fill In Missing Segments (Funding: Property Sale
Proceeds)
PROJECT NO. 1 - REDEVELOPMENT OF THE BLIGHTED MOUNTAIN INN
AREA
The "catalyst" project in the district is the redevelopment of the blighted Mountain Inn
area (see Section One). East Square, LLC, (The Developer) is proposing a $ 22.5 million
investment into a destination hotel/meeting space/condominium project. Approximately
$ 19 million of the proposed redevelopment is from private investments. An additional
$3 .5 million for the public purpose of eliminating the existing blight will be secured by
Tax Increment Bonds issued by the redevelopment district. No TIF proceeds will be used
for the construction of the buildings of the proposed project but will be limited strictly to
public purposes allowed under the law for redevelopment districts.
City of Fayetteville, Arkansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT NUMBER ONE
PROJECT PLAN AS AMENDED BY AMENDMENT NUMBER ONE
4
The Fayetteville City Council has adopted the Dover Kohl Downtown Master Plan (see
Exhibit No. 13) which focuses on improvements in much of the area included in the
approved TIF District. The adopted Downtown Master Plan identified as a clear priority
the removal of the "eyesore" of the denigrated Mountain Inn.
PROJECT NO. 1 - REMOVAL OF BLIGHT
The project plan (the area identified as the Mountain Inn Project) for the Highway 71
East Square Redevelopment District targets the removal of blight as defined in Arkansas
Statute 14- 168-301 . It reads as follows:
(3)(A) "Blighted area" means an area in which the structures, buildings, or
improvements, by reason of dilapidation, deterioration, age or obsolescence,
inadequate provision for access, ventilation, light, air, sanitation, or open spaces,
high density of population and overcrowding or the existence of conditions which
endanger life or property, are detrimental to the public health, safety, morals, or
welfare.
(B) "Blighted area" includes any area which, by reason of the presence of a substantial
number of substandard, slum, deteriorated or deteriorating structures,
predominance of defective or inadequate street layout, faulty lot layout in relation
to size, adequacy, accessibility, or usefulness, unsanitary or unsafe conditions,
deterioration of site or other improvements, diversity of ownership, tax on special
assessment delinquency exceeding the fair value of the land, defective or unusual
conditions of title, or the existence of conditions which endanger life or property
by fire and other causes, or any combination of such factors, substantially impairs
or arrests the sound growth of a city, retards the provision of housing
accommodations, or constitutes an economic or social liability and is a menace to
the public health, safety, morals, or welfare in its present condition and use, or
any area which is predominantly open and which because of lack of accessibility,
obsolete platting, diversity of ownership, deterioration of structures or of site
improvements, or otherwise, substantially impairs or arrests the sound growth of
the community.
The recently adopted "Downtown Master Plan"
contemplates specific key projects necessary for a
fully revitalized downtown area. The Mountain
Inn was identified as #3 in the list of immediate
projects. The Downtown Master Plan states: "A
key opportunity for infill development is the
redevelopment of the Mountain Inn. The hotel,
fronting College Avenue, has been vacant for a
number of years. The existing structure is an
eyesore. . . the location of the Mountain Inn among
several other Downtown landmarks and historic
City of Fayetteville, Arkansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT NUMBER ONE
PROJECT PLAN AS AMENDED BY AMENDMENT NUMBER ONE
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structures offers the opportunity to create a taller
building - a new landmark-which signals the
revival of downtown". For many years the New Mountain Inn Motor Lodge.
remnants of the once premier lodging facility
formerly known as the Mountain Inn have been
decaying with little hope for a change in its _
blighted condition. In its day, the hotel was _
considered the destination of choice for travelers
in the Fayetteville area as well as the hosting of
other community traditions including Sunday - --
brunch, regular business meetings, club events
and wedding parties. --
Unfortunately, the hotel through a series of unsuccessful ventures became an inconsistent
host and ultimately an outdated lodging facility. During the same period that the
Mountain Inn lost its luster the Fayetteville downtown area went into a period of
degradation and many business operators, vendors and customers left the area. After
years of wasting away, concerned citizens, local government leaders and developers
came together to revitalize the historic Fayetteville downtown square as well as
neighboring Dickson Street. This rebirth has been ongoing for the past fifteen years with
the vast majority of the significant building in the Downtown/Dickson Street area being
revived to support the business, cultural and entertainment center it has become.
In recent years multiple redevelopment projects have transformed parts of the
downtown/Dickson Street area into a hub of culture, commerce and entertainment for
northwest Arkansas. New construction and redevelopment projects of note that have
emerged include: The Campbell Bell Building, The Ozark Theatre Building, The Three
Sisters, UARK Bowl, The Bank Of Fayetteville Building, The Walton Arts Center, The
Ozark Brew Pub, Camall Hall, The Ice Plant Building, Rollston Building, Cooper House,
Pyeatt Building, Campbell Terrace, Laundry Building, Bakery Building, Collier's Drug,
The Old Post Office Building, The Town Center and the recently completed new
Fayetteville Public Library. Some of the redevelopments are pictured below and on the
next page:
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City of Fayetteville, Arkansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT NUMBER ONE
PROJECT PLAN AS AMENDED BY AMENDMENT NUMBER ONE
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City of Fayetteville, Arkansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT NUMBER ONE
PROJECT PLAN AS AMENDED BY AMENDMENT NUMBER ONE
0 • 7
Noticeably absent from this regenerative
trend has been the Mountain Inn with its
broken windows and boarded-up
doorways sitting on its prominent
position at the crest of Archibald
Yell/College Avenue. Unfortunately,
now, the once bustling hotel's only
visitors consist of vandals, transients and
the local police force.
Now with its neighbors alive with activity, the former Mountain Inn and other
participating spaces will be transformed into a destination facility that will be
unsurpassed in the Fayetteville market.
The planned development project will
incorporate a 144 room full-service
hotel, 18 condominiums, 12,500 sq. ft.
conference/meeting space, three , _
restaurants, a day spa, exercise center,
boutique shops, a 300 space multi-story c T
parking garage and a rooftop botanical
garden with observation deck. The -r=—=
project in its entirety is known as the
East Square Redevelopment Project. I
The project's centerpiece is a planned r r + rT + �r
full service national flagship hotel. The i I
hotel will serve the mid-to-high end of rr
the business traveler, short duration
vacationer and meeting/event attendees. � I
With a thoroughly defined design L 1 1- 1 F _ r F
concept, the stylish hotel will offer the - - ---
highest level of comfort and service - --
along with the intrigue of its inviting -
amenities. The twelve-story main
structure of the new hotel will be built
on the existing site of the 1960's
addition to the historic Mountain Inn. =
Condominiums will be built on the upper - - -
floors of the new structure.
The architecturally pleasing section of the historic inn's arcade which faces Center Street
will be preserved to accommodate pedestrian accessible boutique shops along the
north/south lower level arcade and will house the day spa and function space on the upper
floors. Banquet and conference facilities will be arranged in the northeast section of the
complex with a multi-purpose ballroom and multiple flexible "break-out" meeting
City of Fayetteville, Arkansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT NUMBER ONE
PROJECT PLAN AS AMENDED BY AMENDMENT NUMBER ONE
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