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HomeMy WebLinkAbout1991-06-28 Minutes7 1.440 SPECIAL MEETING OF THE CITY BOARD OF DIRECTORS A special meeting of the Fayetteville City Board of Directors was held on June 28, 1991 at 8:00 a.m. in Room 326 of the City Administration Building at 113 West Mountain Street, Fayetteville, Arkansas. PRESENT: Mayor Fred Vorsanger; Assistant Mayor Mike Green; Directors Dan Coody, Shell Spivey, and Bob Blackston; City Manager Scott Linebaugh; City Attorney Jerry Rose and City Clerk Sherry Thomas; members of staff, press and audience. ABSENT: Directors Ann Henry and Julie Nash. CALL TO ORDER Mayor Vorsanger called the meeting to order. EASCO PROPERTY PURCHASE .+ City Manager. Scott Linebaugh addressed the? Board explaining the purpose of the special meeting was to discuss.the location of Easco Hand Tools to the City of,Fayetteville in the Andrews Corporation Building. Linebaugh explained that the City had been working on locating Easco in Fayetteville for the past two years, and one of the conditions' is that the City of Fayetteville purchase land owned by Andrews Corporation that the Easco'Division does not need. The land consists of 20.,7 acres with a purchaseprice of $16,900.00 per acre for a total of $350,000.00. Linebaugh stated that the City has the money in the "Pay 'As You ,Go. Funds" and Staff is recommending that a portion of the $487,500.00 planned for new police building scheduled for 1995 be used to purchase the land. This land would be added to the land the City already owns. Linebaugh stated that there is presently sufficient sales tax money to purchase this land immediately: Richard Shewmaker, Economic Development Coordinator, addressed the Board stating that Easco is the leading manufacturer of automotive specialty tools. Shewmakerexplained that this land acquisition would provide an asset that could be marketed at a later date and the City could realize $2 million in direct benefits as a result of a $350,000.00 expenditure. A large company, like this generates continuing revenues through sales tax revenues. Shewmaker reported on research done by the United States. Chamber of Commerce estimating that a company 'such as this, employing 500 plus people would have average retail sales of $9,700,000.00 per year. With Fayetteville's 2% sales tax,•that would be $200,000.00 new income to the sales tax fund, not counting $100,000.00 in revenue going to Washington County for their 1% sales tax nor sales on restaurant purchases which would generate revenue in advertising and promotion. Shewmaker estimated that in three years, new personal property tax revenues would generate $217,000.00 per year to the x40 June 28, 1991 school system and level out at approximately $108,000.00 per year after five years. In addition, it is reported that in Springdale, Easco presently contributes the second largest amount to United Way next to Tysons, and they encourage their employees to become community involved. Green, seconded by Blackston, made a motion to approve a resolution to purchase the property. Director Green stated that this was a textbook case for improving economic development in Fayetteville by leveraging money and best utilizing other resources. The added access road will make the Industrial Park land more attractive to industry. Director Blackston stated that this is the type of industry that the City of Fayetteville has been talking about and looking to acquire. Fred Turrentine, of Easco, stated his company was proud of bringing this new plant to Fayetteville and thanked Richard Shewmaker for all of his help and support. Jim Glenn of Mcllroy Bank addressed the Board in favor of the resolution and thanked the City for what they had done to bring this plant to Fayetteville. Steve Ward, representing the Economic Development Committee of the Fayetteville Chamber of Commerce, addressed the Board in support of the resolution. Director Spivey thanked the press for the restraint they used in not reporting on this proposed plant prematurely. Upon roll call, the resolution passed by a vote of 5 to 0. RESOLUTION 120-91 APPEARS ON PAGE OP ORDINANCE AND RESOLUTION BOOS ADJOURNMENT The meeting was adjourned at 8:24 a.m.