HomeMy WebLinkAbout1990-07-13 Minutesx
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MINUTES OF A SPECIAL BOARD MEETING
A special meeting of the Fayetteville City Board of Directors was
held on Friday, July 13, 1990 at 4:00 p.m. in Room 326 of the City
Administration Building at 113 West Mountain Street, Fayetteville,
Arkansas.
PRESENT: Mayor William V. Martin, Directors Michael Green,
Russ Kelley, Ernest Lancaster, Paul Marinoni, Jr.,
Shell Spivey, and Fred Vorsanger; City Manager Scott
Linebaugh, City Attorney Jerry Rose, City Clerk
Sherry Thomas; members of the staff, press, and
audience.
INDUSTRIAL PARK PURCHASE
Economic Development Director Richard Shewmaker pointed out on a
map the specific property being proposed'as the new industrial
park. He stated that after surveys were complete, the total cost
would be $1,266,610. •Shewmaker discussed some "pros and cons"
regarding the purchase.,''Cons" were listed as: money, no tennant,
and unimproved land. "Pros" were listed as: original commitments
would be given again, visibility and major highway access. He
explained that the region is growing and thriving and feels the
City should be looking ahead to benefits of the growth. He also
stated that the City of Fayetteville did not fail CTA (the company
who had said they would move into the new park), and in retrospect,
he felt CTA would even agree that they did make an unfortunate
decision by locating in Siloam Springs.* •
Shewmaker went on to say land that is'best suited for this type of
development should be looked at closely. Mountainous property is
difficult to convert to industrial use. He stated that there is
no excess of choice locations similar to the bypass location. He
addressed the questions about the wetland area and what measures
had been taken to protect the area and the endangered species of
fish in the area. P
c,
Dr. Don Peterson, a professor at the University of Arkansas,
addressed the possible connections between the industrial park and
the University's "Genesis" project. This project isdesigned to
bring new businesses into the area, nurture and help them grow and
prosper and hopefully provide jobs for Arkansans. He stated that
the project had been somewhat successful' in bringing in new
companies, but at this time, most of them are still in the research
mode of development. Peterson stated thata quality industrial
park would help attract additional companies looking for a place
to grow and help the economic development of the region.
Shewmaker introduced Mrs. Bradley, the director of the Genesis
project, who then gave a short presentation about the project in
greater detail.
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July 13, 1990
Mr. J.D. Bass, a manufacturer taking part in the Genesis project,
gave a short statement regarding the emphasis on science technology
in the industrial parks.
Jim Johnson, an employee of the U.S. Fish & Wildlife Service
working with the Arkansas Cooperative Fish & Wildlife Research
Center located at the University, spoke regarding the steps taken
to protect the wetland area and the endangered species of fish
living there. He stated the species of fish and the wetland is not
currently protected by any state or federal agency.
Director Vorsanger, seconded by Kelley, made a motion to purchase
the property.
Director Marinoni asked Shewmaker if it was necessary to purchase
tract A (the only parcel across the road) at this point in time.
Shewmaker felt the parcel of land should be purchased at the same
time as the other acreage because of its accessability.
Director Vorsanger asked if the average cost was approximately
$4,500 per acre, and Shewmaker stated he believed that was correct.
Director Lancaster asked approximately how many acres were in the
parcel and Shewmaker answered there were 288 acres in the parcel,
with 7 of those being wetlands, and the floodway to the edge of
the channel being 5.9 acres.
Wayne Jones, an associate of McClelland Consulting Engineers,
answered numerous questions regarding the floodplain and possible
construction.
Mayor Martin stated that one of the arguments made is that the
current industrial park is not appropriate for one reason or the
other. He stated that the current industrial park bears no
resemblance to a heavy manufacturing area with black smokestacks
and the like. He questioned what was wrong with locating a nice
research -type manufacturing facility in the current industrial
park.
Ms. Bradley stated zoning in industrial development is becoming
more and more prevalent today. She stated that if Fayetteville
wants to compete for the high technology type of industry the City
should realize that these industries would not go to the existing
park in the City. She stated that the companies need a different
environment that could be as esthetically pleasing as the new one
could become.
Mayor Martin maintained that the existing park remains largely
unutilized at present. He asked if it would be possible to sub -
zone a portion of the existing park to be able to provide covenants
for businesses without going to the expense and risk of
constructing a completely new park.
July 13, 1990
Bradley stated that what is in the existing park would not be
compatable with the type of manufacturing that would be looking to
locate in the future. She stated these businesses would not have
machine shops and warehouses and be large truck intensive. She
also stated that the existing park is a good park and viable to the
community and should continue to be developed.
Director Marinoni asked where the $1.2 billion would come from.
City Manager Scott Linebaugh stated that the Economic Development
Fund currently has $800,000 in it and the other funds would make
up the total as follows:
$300,000 from the pay-as-you-go sales tax
$127,000 from the housing bond money
$48,000 left over from the end of the year from the Economic
Development Budget
Dan Cotrick,
the .last 20
developments
the City to
environment.
a resident, stated that as a construction manager for
years, he has worked on precisely these types of
on the West``Coast. He emphasized the opportunity for
purchase the acreage and 'control the industrial
Jim Glenn, president of McIlroy Bank & Trust and current chairman
of the Industrial Committee of the Fayetteville Chamber of
Commerce, stated that he,was strongly in favor of the proposal.
Joe Robson stated that 11C -felt it was ,the purchasers who would
dictate what kind of environment they want... He questioned whether
or not there have been any purchases of products produced by
clients of the Genesis project in the four years it has been
established. Ms. Bradley answered no. -
•
Bruce Culley suggested looking closely at the costs of the plan.
He.stated.that exposure wasa secondary issue. He also stated that
the demise of industrial'parks was being projected for the future
and that it was being predicted'that most industries in the future
would be surrounded by their -own dittle neighborhoods, combining
industry and residential.
i i
Mayor Martin asked Mr. Glenn if the Chamber -of Commerce had taken
an official position on`the proposal. - Glenn answered that the
Chamber had passed a resolution supporting the purchase.
Robert Reus stated that he viewed the current industrial park as
a -failure and was concerned -that a new one might not succeed. He
felt there were no realf,attempts made to recruit business and
industry for the existing park. Reus also stated he felt the land
price being requested was far above market value.
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July 13, 1990
Nancy Myer questioned the need to construct a second industrial.
park when the current park is only being used at half capacity.
She stated that proceeding cautiously when deciding whether or not
to purchase the property is important instead of allowing realtors
and others to pressure the City into a hurried decision. Myer
asked Shewmaker why the City was interested•in purchasing property
already designated as a wetland where endangered species lived.
Shewmaker stated if the City purchased the property, then it could
be protected.
Kirk Elsass from Lindsey and Associates addressed Ms. Myer's
statement regarding pressure from realtors. He stated that his
company was not trying to pressure a decision from anyone but they
have been dealing with eleven different owners in regard to selling
the properties. With deadlines and closing dates, Elsass stated
it was difficult to inform all owners of everything taking place.
Julie Nash asked if Al Raby was still under contract to the City,
and Linebaugh stated that he was working on several projects. She
reminded the Board that Mr. Raby had at one time done research on
sites and specific criteria for an industrial research park. She
suggested there might be a better suited location to look for if
this specific property did not sell.
Mayor Martin asked Merrill about Raby's findings, and Merrill
stated that in Raby's draft of a proposed 2010 General Plan, he did
identify the need for a research park facility located somewhere
in the northern or northwestern part of the City. Merrill stated
that a land use map prepared by Raby's company did designate most
of this particular piece of property for future industrial
development.
Mayor Martin stated that he felt research, Fayetteville, and the
University of Arkansas were all compatable and predicted a research
oriented development in the community at some point in time, but
for the present, the current business park had enough going for it
that he could not see speculating on new property.
Director Lancaster expressed his feelings that the City must make
an effort to move ahead, and part of that effort was to take some
chances.
Director Spivey stated that putting the community together in the
proper economic mix was the purpose behind aggressive recruitment
of clean industry to help support schools and the city
infrastructure. He stated that although the City had really not
been successful in the past, he knew that Mr. Merrill and the
Planning Commission was sincerely trying to turn that around and
cited the plans for this new park as an example. He said the City
could just use the property as an investment, sell it and make
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July 13, 1990
some substantial profit, but he felt that would not be the case
and the City would be successful in recruiting the industry they
desired.
Director Vorsanger stated the best buy for industrial property
right now was the present Andrews property and that companies all
across America are looking forjust such an investment. He asked
Shewmaker to explain what was being done for the present industrial
park.
Shewmaker stated that at the next meeting the City Board will
consider hiring an engineer to design the frontage road. Pump
Station Road is being paved and the right turn lane on Armstrong
Road, completing paving of all roads in the present park. The
Highway Commission has agreed to pave Highway 156.
Vorsanger stated he was convinced the present industrial park will
be a success, even though it will take more hard work and time.
He assured everyone that Fayetteville will be competing with
Springdale and Rogers. He stated he had resided in several
locations around the country and $4,500 an acre for land around a
bypass. area was minimal.`. He said the, new property was an
opportunity Fayetteville could not pass up.
•
Director Green stated the. concept was extremely strong, and he
believed this is the way the City should move in trying to attract
industry and economic development. He`stated with support and
commitment of the Board and staff, the new research commerce park
will be a success, and he.would vote4for'the proposal.
Director Marinoni stressed the fact that -waiting has caused the
City to lose of businesses. He stated he would vote for the
proposal. so Fayetteville would have something to offer.these
businesses looking for dplace to locate -in the future.
Upon roll call, the resolution passed by a vote of 6 to 1, with
Martin voting in the minority.
RESOLUTION 110C-90 APPEARS »14 PAGE !` OF ORDINANCE AND
RESOLUTION BOOR'
a
ILLINOIS RIVER DISCHARGE RULING
•
Linebaugh stated his office had received a copy of the order from
the Tenth Circuit Court regarding the EPA.. A press conference was
given prior to the meeting and he asked City Attorney Jerry Rose
to brief those interested,on the contents of that document and the
city's alternatives.
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July 13, 1990
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Mayor Martin stated that the Board would stay for an information
session only and that there would be no further action taken that
evening.
City Attorney Rose stated the Court has rejected the EPA -issued
permit and has taken the permit and the permitting of discharge
into the Illinois River Basin away from the EPA. The Court felt
there was no legal way the EPA should have given the City a permit
to begin with. It also stated that the EPA -approved Water Quality
standards of Oklahoma become Federal law instead of Oklahoma law.
Rose stated this is an important and significant order for the
whole state and region and not just Fayetteville. Rose stated he
would ask the Board to petition for a re -hearing and, if the
petition for re -hearing was unsuccessful, to appeal to the United
States Supreme Court. He said, even though it seemed that way, he
did not believe that the Court ever intended to give Oklahoma
jurisdiction over Arkansas, and it was important that the order and
perhaps even the law should reflect that.
Rose stated he felt the EPA would be very interested in appealing
the order and take the lead but the City of Fayetteville is a named
party and interests are affected. He strongly recommended joining
in on the appeal.
It was stated whether or not effluent is discharged, the issue of
authority needs to be established. Rose agreed and stated that
this was a classic example of federalism.
It was asked if waiting to let the EPA digest the situation and see
what course they decide to take before taking any action on the
city's behalf would be better.
Rose stated, at this point, he wanted a stay of the mandate from
the Tenth Circuit or United States Supreme Court so the City could
continue to pump effluent into the Illinois pending the outcome of
the issue, and the only way to obtain that is to become an active
party in the suit.
Linebaugh stated the worse thing that could happen would be if the
City could not get a stay in 21 days, they would be forced to go
back to the White River and "taking down" Lake Sequoyah in
approximately one month, the lake would be totally dry, and then
the City would be in violation of other things.
Mayor Martin stated the discharge point was on his property, and
he could testify to the purity of the water and the actual beauty
of the creek. He questioned why residents downstream of White
River would mind if the effluent was diverted there until the whole
problem could be solved. He stated that this might break the "log
jam" of irrationality to oppose the effluent, as it was not
damaging.
July 13, 1990
Linebaugh stated staff would try to break that "log jam" and get
lines of communication opened. He stated if the City did get the
stay and it was taken to the Supreme Court, they could continue to
discharge as they have been until the Court reached a decision.
Director Marinoni asked if the mandate pertained only to the
Illinois River or if it included the Arkansas River as well. Rose
said the Attorney General's Office has asked to meet with City
officials in Fayetteville a week from Monday and then have a
meeting with all the people who might be affected in this area to
try to determine a planof attack against the order and discuss
alternatives.
Rose stated if the City°was not granted a stay, he felt it would
be appropriate to ask the EPA for permission to continue dumping
in the White River Basin or. temporarily dump until an alternative
plan can be found and that would probably be to take a pipeline to
the Arkansas River at 'incredible cost to the taxpayers of this
area.
Land -spraying was discussed,.. and it was mentioned thafcurrently
the City utilizes land -spray oh 600 acres which accounts for one-
seventh of the total daily output of the City. It was decided that
the amount. of land required to take care of the majority of the
output would be astronomical. -
Rose stated that the meeting with Attorney General Clark would be
Monday at 4:00 p.m., and that it'would not be a press conference
but a discussion among concerned officials of the region.
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ADJOURNMENT
•
The meeting adjourned at 5:40 p.m.
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