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HomeMy WebLinkAbout1992-10-27 MinutesMINUTES OP A BOARD OF DIRECTORS MEETING A special meeting of the Fayetteville City Board of Directors was held on Tuesday, October 27, 1992, at 4:00 p.m. in the Directors' Room of the City Administration Building at 113 West Mountain Street, Fayetteville, Arkansas. PRESENT: Mayor Fred Vorsanger; Assistant Mayor Mike Green; Directors Ann Henry, Dan Coody, Julie Nash, and Shell Spivey; City Manager Scott Linebaugh; City Attorney Jerry Rose; City Clerk Sherry Thomas; Director of Public Works Kevin Crosson; Director of Administrative Services Ben Mayes; Director of Planning Alett Little; members of staff, press, and audience. OTHERS PRESENT: Acting Governor Jim Guy Tucker and Senator David Malone ABSENT: Director Bob Blackston CALL TO ORDER Mayor Vorsanger called the meeting to order with six directors present. Mayor Vorsanger stated the purpose of this meeting was to ratify the commitments that have been made to Superior Industries while discussing Superior's expansion in the Industrial Park. SUPERIOR INDUSTRIES Mayor Vorsanger stated Superior Industries is announcing their plans to make a major addition to their present facilities. He read a memo prepared by City Manager Linebaugh which outlined the conditions that the Board is being requested to ratify at this meeting: The City will provide funding for a traffic light at the intersection of State Highway 16 and Armstrong Avenue which was recently approved by the Arkansas Highway and Transportation Department. The cost of that signal will be approximately $20,000. These funds will be taken from the current funding for traffic signals out of the General Fund. The City will provide funding to place water and sewer service lines and back-flow prevention devices to the new building from existing service in City right of way. The City will allocate out of its General Fund Balance the amount necessary to install these lines. The City's portion for this project shall not exceed $80,000. The City will continue improvements on Commerce Drive to the point where a cul-de-sac is shown in the plans. This will finalize the end of Commerce Drive. It will be funded from existing funds designated for street Ufa I October 27, 1992 1 improvement. The estimated cost of completion of this road is $130,000. The City will convey to Superior Industries approximately 5 acres which will be used for a parking lot from the Industrial Park Fund. The value of the land is estimated to be $100,000. The cost of the land from the City is $36,200 at $7,239 per acre average cost for the land purchased by the City. The aforementioned items comprise a total package of improvements to the industrial park and Superior of approximately $330,000. The proposal is predicated on Superior Industries building a 285,000 square foot expansion at an investment of approximately $30 million. Mayor Vorsanger pointed out there was a schedule of benefits attached to the memowhich includes -approximately 300 new jobs in Fayetteville, an aggregate personal income of $7,715,400, retail sales of $5,850,600;. and increase -.in retail establishments, nonmanufacturing jobs, a population; increase, family units increased, and increased school enrollment. In addition, Mayor Vorsanger pointed -Out the additional taxable income of approximately,$283,800 per year to the city and county is one of the most important benefits of the Superior expansion. 1 Mayor Vorsanger stated Governor Jim Guy Tucker was attending this meeting and would be "holding a press conference immediately following the Board meeting. City Attorney Jerry -Rose read,tke resolution: Green, seconded by Henry, Made a'motion'to approve the resolution to ratify the agreements made with Superior Industries. . +a Jim Crider, Economic Development' Coordinator with the Chamber of Commerce, addressed thfloard with the announcement that Superior Industries of Van Nuys, California, had made a decision to not only stay in Fayetteville -but to build a 285;000 square foot expansion to their present facility at an investment of over $30 million. He stated 1.2 million wheels are produced at the current plant, and an additional 1.5 million wheels will be produced after the expansion making a total of 2..7 millions wheels annually. Wheels from the new expansion should be rolling off -the assembly line the third quarter of 1993. The building expansion is being designed to allow for even more expansion in the future. Mr. Crider stated Superior is a valued corporate citizen of Fayetteville. By staying and expanding in our community, Superior is giving Fayetteville a vote of confidence in our economic future, leadership qualities,. and in the citizens. October 27, 1992 Mr. Crider stated continued economic development will pay big dividends to our community. He stated this expansion is the result of many long hours of work by Superior Industries, the City, and the Chamber of Commerce. He praised the efforts of City Manager Scott Linebaugh and City Staff for their efforts in working with this Chamber/City joint effort. Upon roll call, the lotion to approve the resolution vas approved by a vote of 6 to 0. RESOLUTION 171-92 AS RECORDED IN TEE CITY CLERK'S OFFICE ADJOURNMENT The meeting adjourned at 4:16 p.m. 1