HomeMy WebLinkAbout118-02 RESOLUTION•
RESOLUTION NO. 118-02
A RESOLUTION APPROVING THE SALE OF APPROXIMATELY
7.68 ACRES OF ABANDONED RAILROAD RIGHT-OF-WAY TO
THE UNIVERSITY OF ARKANSAS BOARD OF TRUSTEES FOR
THE PRICE OF EIGHTY-TWO THOUSAND THREE HUNDRED
DOLLARS ($82,300.00).
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS•
Section 1. That the City Council of the City of Fayetteville, Arkansas
hereby approves the sale of approximately 7.68 acres of abandoned railroad
right-of-way to the University of Arkansas Board of Trustees for the price of
Eighty -Two Thousand Three Hundred Dollars ($82,300.00).
Section 2. That the City Council of the City of Fayetteville, Arkansas
hereby authorizes the Mayor and the City Clerk to convey said property to the
University of Arkansas Board of Trustees.
PASSED and APPROVED this 6th day of August, 2002.
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ER WOODRUFF; ity Clerk
APPROVED:
By:
DAN COODY, May
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NAME OF FILE:
CROSS REFERENCE:
Resolution No. 118-02
08/06/02
Resolution No. 118-02
08/06/02
Copy of the Quitclaim Deed (gave both originals to Ed Connell, per his
request, on August 8, 2002)
07/16/02
Offer and Acceptance Contract with the University of Arkansas,
Fayetteville
07/15/02
Memo to Fayetteville City Council thru Dan Coody, Mayor, from Ed
Connell, Land Agent, regarding Sale of Railroad Right of Way to the
University of Arkansas
Memo to Fayetteville City Council thru Dan Coody, Mayor, from Ed
Connell, regarding Garland and Cleveland Streets Improvements Right
of Way Acquisition Compromise
05/02/02
Appraisal Report for City of Fayetteville (location: abandoned railroad
right-of-way between S. School Ave. and S. Garland Ave.)
08/06/02
Staff Review Form
08/08/02
Memo to Ed Connell, Engineering Division, from Heather Woodruff,
City Clerk
05/21/02
Memo to Fayetteville City Council Members, thru Mayor Coody, Ray
Bordreaux, John Maguire, Greg Boettcher, Jim Beavers, from Ed
Connell, Land Agent, regarding Research & Technology Park (South
Fayetteville)
06/14/02
City of Fayetteville Press Release regarding Wilson Spring Business
Park Assessment Task Force
Wilson Springs Business Park Information & Frequently Asked
Questions
NOTES:
Parcel Na 765-15045.000
QUITCLAIM DEED
MUNICIPAL CORPORATION
BE IT KNOWN BY THESE PRESENTS:
A
Res. 118-02
THAT the City of Fayetteville, Arkansas, a municipal
corporation, hereinafter called GRANTOR, for and in consideration
of the sum of One Dollar ($1.00) and other good and valuable CCP)/
consideration, the receipt of which is hereby acknowledged, does
hereby grant, sell and quitclaim unto Board of Trustees of the
University of Arkansas, Fayetteville, Arkansas, hereinafter called
GRANTEE, and unto Grantee's successors and assigns, all of
Grantor's right, title and Interest in and to the following described
lands situated in the County of Washington, State of Arkansas, to -
wit:
PROPERTY DESCRIPTION: (99069718)
All that portion of the former Burlington northern and Santa Fe Railway Company's(formerty St. Louis
and San Francisco Railway Company) 100 foot wide Fayetteville to Pettigrew, Arkansas branch line property,
now discontinued, being 50 feet wide on each side of said Railway Company's Main Tract centerline as
originally located and constructed upon, over and across the Southwest Quarter (SWY4) of the Southwest
Quarter (SW%), the Southeast Quarter (SE%) of the Southwest Quarter (SW%) and the Southwest Quarter
(SW%) of the Southeast Quarter (SE%) of Section 21, Township Sixteen (16) North, Range 30 West of the 51h
Principal Meridian, Washington County, Arkansas, bounded on the easterly side by the centerline of State
Highway 716 (south School Street) and bounded on the west by the West line of said Section 21, said
centerline being more particularly described as follows, to -wit: Beginning at a point on the West boundary line
of said Section 21, said point being North 02° 45' 29° East 801.29 feet from the Southwest comer of said
Section 21; thence North 83° 30' 32" East 1328.07 feet thence North 82° 59' 33" East 1841.44 feet thence
North 87° 48' 12" East 254.54 feet to the centerline of State Highway 718, containing 7.86 acres, more or less,
all being subject to easements and rights of way of record.
TO HAVE AND TO HOLD the same unto the said Grantee and unto Grantee's successors and
assigns forever. /���1111"""��
WITNESS the execution hereof on this r0 day of tee./
2002.
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ATTEST: � �..
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a? - a1� i.Clerk
STATE OF ARKANSAS
CITY OF FAYETTEVILLE, ARKANSAS,
a municipal corporation
BY:
COUNTY OF WASHINGTON
Dan Goody, Mayor
ACKNOWLEDGMENT
85.
(Seal)
BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and acting
Notary Public within and for said County and State, personally appeared Dan Coady and Heather Woodruff,
to me well known as the persons who executed the foregoing document, and who stated and acknowledged
that they are the Mayor and City Clerk of the City of Fayetbvllle, Arkansas, a municipal corporation, and are
duly authorized in their respective capacities to execute the foregoing instrument for and in the name and behatf
of said municipal corporation, and further stated and acknowledged that they had so signed, executed and
delivered said instrument for the consideration, uses and purposes therein mentioned and set forth.
WITNESS my hand and seal on thisaday of
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MY COMMISSION EXPIRES: j; OtA y
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OFFER AND ACCEPTANCE CONTRACT ORIGINAL
1. That the Board of Trustees of the University of Arkansas , acting on behalf of the
University of Arkansas, Fayetteville, hereinafter referred to as the Buyer, offers
to buy, subject to the terms and conditions set forth herein, the following
described property:
SEE ATTACHED EXHIBIT "A"
FOR PROPERTY DESCRIPTION
from the City of Fayetteville. Arkansas a municipal corporation, hereafter
referred to as Seller.
2. Purchase Price: Subject to the following conditions, the Buyer shall pay for the
property at closing, the total and cash only payment of $ 82.300 .
3. Title Requirements:. If title requirements are not fulfilled to the satisfaction of the
Buyer, or the Seller fails to fulfill any obligations under this contract, the Buyer
may, at its option, declare this contract null and void. If the Buyer fails to close
this transaction or fails to fulfill his obligations under this contract or after all
conditions have been met, the Seller, at its option, may declare this contract to
be null and void. Alternatively, the either party may assert legal or equitable
rights which each may have because of breach of this contract.
4. Conveyance will be made to the Buyer by Quit Claim Deed and such deed shall
be subject to recorded instruments and easements, if any. Such conveyance
shall include any and all rights owned by the Seller.
5. The Seller shall furnish, at Sellers expense, a policy of title insurance in the
amount of the purchase price from a title insurance company as selected by the
Seller.
6. Seller agrees to allow Buyer, if Buyer so desires, at Buyer's expense, to survey
the property. Seller does not possess a current survey of the property Seller
agrees to cure any title problems which may result from any differences between
the recorded legal descnptions of the property and the survey descnption. Said
title problems, if any, must be solved prior to dosing to the satisfaction of the
Buyer.
7. Taxes and special assessments due on or before closing shall' be paid by the
Seller. Insurance, general taxes, ad valorem taxes, special assessments and
rental payments shall be prorated as of closing.
8. The closing date shall be within thirty (30) days after approval of this contract by
the Fayetteville City Council and the Board of Trustees of the University of
Arkansas, whichever occurs later. If such date of closing falls on a weekend or
holiday, it will be held the following working day.
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OFFER AND ACCEPTANCE CONTRACT
Page 2 of 5
9. Closing costs, except for those heretofore mentioned, shall be shared equally
between Buyer and Seller.
10. Possession of the property shall be delivered to the Buyer on the date of closing.
11. Seller hereby grants permission for the Buyer or its employees or designates to
enter the above described property and improvements for the purpose of
inspection and/or surveying.
12. All fixtures, improvements and attached equipment are included in the purchase
price.
13. Risk of Toss or damage to the property by fire or other casualty occurring up to
the time of closing is assumed by the Seller.
14. Seller shall disclose to Buyer any and all environmental hazards of which Seller
has actual knowledge. Buyer may obtain a preliminary Phase I, or modified
Phase I, environmental assessment within the specified time frame for closing
If such assessment indicates the existence of asbestos or heavy metals in
quantities which could be considered as hazardous materials or environmental
hazards, a more extensive assessment would be conducted by the Seller at
Seller's cost to determine the extent of required remediation. Buyer may extend
said closing until such hazards have been corrected by Seller, or buyer may
terminate this contract. Altematively, Seller may elect to deduct the cost of such
remediation from the purchase pnce.
15. This agreement shall be govemed by the laws of the State of Arkansas.
16. This agreement, when executed by both the Buyer and the Seller shall contain
the entire understanding and agreement of the parties with respect to the
matters referred to herein and shall supersede all price or contemporaneous
agreements representations and understanding with respect to such matters,
and no oral representations or statements shall be considered a part hereof.
17. This contract expires, if not accepted by the Administration of the Seller, on or
before the day of , 2002.
18. The property, as described herein, shall be sold on a as -is basis, with no
actual or implied guarantees other than those set forth in this document.
19. It is understood and agreed by Buyer and Seller that each entity will submit for
approval by their respective governing bodies within a period of 60 days after
this document is fully executed.
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OFFER AND ACCEPTANCE CONTRACT
Page 3 of 5
20.. NOTICE: SELLER ASSERTS AND BUYER HEREBY ACKNOWLEDGES
THAT THIS CONTRACT IS EXPRESSLY CONTINGENT UPON
THE APPROVAL. OF THE CITY COUNCIL OF FAYETTEVILLE
AND THE BOARD OF TRUSTEES OF THE UNIVERSITY OF
ARKANSAS, AND THAT THE FAILURE OF THE COUNCIL OR
BOARD OF TRUSTEES TO SO APPROVE WILL MAKE ALL
PORTIONS OF THIS OFFER NULL AND VOID
SELLER:
City of Fayetteville, Arkansas
A municipal Corporation
BY:
an Coody, Mayor
ATTEST::
I4eather Woodruff, City Clew
BUYER:
Board of Trustees of the University of Arkansas
BY:
.� .4.C�.ceeensc,___
Donald Pederson, Vice Chancellor
ATTEST:
JaaeIl,PrdDior
Date: D L
Date: 7/f,/o'L
Date:
i/,010
Date: 7AVO -
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OFFER AND ACCEPTANCE CONTRACT
Page 4 of 5
EXHIBIT "A"
PROPERTY DESCRIPTION
PROPERTY DESCRIPTION:
All that portion of the former Burlington Northam and Santa Fe Railway Company 100
foot wide Fayetteville to Pettigrew, Arkansas Branch Line property, now discontinued, being 50 feet
wide on each side of the former Railway Company's Main Tract centerline as originally located and
constructed upon, over and across the Southwest Quarter (SW%) of the Southwest Quarter (SW'/.) and
the Southeast Quarter (SE'/.) of the Southwest Quarter (SW%) and the Southwest Quarter (SW'/.) of
the Southeast Quarter (SE'/.) of section 21, Township 18 north, Range 30 West of the r Principal
Meridian, Washington county, Arkansas, bounded by the Easterly side by the centerline of State Highway
71 (now State Highway 71-B) and bounded on the West side by the West Ilse of said Section 21, containing 7.88
aces, more or less and subject to rights of way and easements of record.
SIGNED FOR IDENTIFICATION
SELLER:
City of F yetteville, Arkansas
BY:
Title: Dan Coody, Ma
BUYER:
UNIVERSITY OF ARKANSAS
BY:
Title
Date:?%%l _..
Date:
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OFFER AND ACCEPTANCE CONTRACT
Page 5 of 5
ACKNOWLEDGMENT
STATE OF ARKANSAS )
)
COUNTY OF WASHINGTON )
BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and
acting Notary Public within and for said County and State, personally appeared Donald 0, Pederson
and James Ezell, to me well known as the persons who executed the foregoing document, and who
stated and acknowledged that they are the Vice Chancellor and ProgramlProJect Director for the
University of Arkansas, Fayetteville, and are duly authorized to execute the foregoing instrument for and
in the name and behalf of the Trustees of the University of Arkansas, and further stated and
acknowledged that they had so signed, executed and delivered said instrument for the consideration,
uses and purposes therein mentioned and set forth.
WITNESS my hand and seal on this day of
MY COMMISSION EXPIRES:
2002.
Notary Public
ACKNOWLEDGMENT
STATE OF ARKANSAS )
)
COUNTY OF WASHINGTON )
SS
BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and
acting Notary Public within and for said County and State, personally appeared Dan Coody and Heather
woodruff, to me well known as the person who executed the foregoing document, and who stated and
acknowledged that they are the Mayor and City Clerk of the City of Fayetteville, Arkansas, a municipal
corporation, and are duly authorized in their respective capacities to execute the foregoing instrument
for and in the name and behalf of said municipal corporation, and further stated and acknowledged that
they had so signed, executed and delivered said instrument for the consideration, uses and purposes
therein mentioned and set forth.
WITNESS my hand and seal on this /6)* day of 2002.
MY COMMISSION EXP
per- O/-2ol0
Notary Public
FAYETTEVIPI,E
THE CITY OF EAYETTEVILLE. ARKANSAS
DEPARTMENTAL CORRESPONDENCE
DATE: July 15, 2002
TO: Fayetteville City Council
THRU: Dan Coody, Mayo
FROM: Ed Connell, Land Agent
RE: Sale of Railroad Right of Way to the University of Arkansas
In July of 1999, the City purchased 7.86 acres of abandoned railroad right of way from
Burlington Northern and Santa Fe Railroad Company as part of a possible multi-purpose trail from
Garland Avenue to Armstrong Ave. in the Industrial Park. Purchase of the railroad right of way was
done at minimum fee cost with title conveyed limited by Quit Claim Deed. The trails project never
materialized since all of the old railroad right of way (100' wide), between School and Momingside, had
either been sold by the railroad to private parties or the easements reverted back to the Grantors.
The university is planning some major expansions around the 'Genesis Center' in the very
near future and it is their desire to acquire this 7.86 acres form the city for control purposes as they try
to acquire all of the lands from Cato Springs Rd north to Town Branch. The University has offered the
City a price of $82,300 for this railroad corridor property. Attached is the Offer and Acceptance Contract
signed by both parties. The above mentioned offer includes $3,300 as the university's share of a
settlement reached with the Fayetteville School District in the acquisition of right of way around Leverett
School on Garland and Cleveland. The city will convey this amount, along with an equal amount, to the
School District in that settlement case. The railroad corridor land was appraised for $79,000.
At this writing, the University intends to utilize a portion of this railroad corridor for trail purposes
until it crosses Cato Springs Branch, after which the trail will follow the stream embankment until it
approaches School Avenue. Muth of the area north of the railroad corridor is in the flood plane and
the university intends to make a major portion of this into a park area. They are currently negotiating
with Kenneth Easterling for the acquisition of about 25 acres that he owns on the east and north sides
of the Genesis Center.
The City has a 6" water main in the railroad corridor which will be maintained by the City.
Attached is a copy of a recent easement which was prepared for the purpose of this water line. A fiber
optic cable system is being considered by the University that will be located in the south portion of the
corridor. Their easement has been signed by the city for this purpose.
It is staff recommendation that this corridor be sold to the university, especially since
their current intention meets the original intention of the City when the property was purchased. The
property will be conveyed in Quick Claim Deed, however, Bronson Abstract feels confident in the title
work and is willing to write title insurance on the property sale. Such title insurance will provide a
degree of assurance to the university.
If you have any questions, please do not hesitate to give me a call at 444-3415.
FAYETTEVI?LE
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
TO: Fayetteville City Counal
THRU: Dan Coody, Mayo
FROM: Ed Connell at
RE: Garland and Cleveland Streets Improvements
Right of Way Acquisition Compromise
The Arkansas State Highway Department (AHTD) is doing a major expansion and
improvement of Garland Avenue, from Maple Avenue to North Avenue. The City of
Fayetteville is improving Cleveland Street at Garland to correspond with the anticipated work
by the AHTD. Both of these projects are impacting Fayetteville School District Leverett
Elementary School at this intersection. The school already had student drop-off problems
and the Garland ROW taking by the AHTD virtually eliminated their existing drop-off on the
East side of the building. Sidewalks, utility easements some additional right of way
requirements on Cleveland St. make it impossible to have a drop-off on the South side of the
school. These right of way requirements were (are) going to require the school to relocate
their entry and drop-off point to the West side of the school budding. Not only were they
going to have to sacrifice some play ground area, but they were going to have to renovate
the inside of the building to accommodate the change. The AHTD would not take into
account this intemal cost of the budding renovation. The School District rejected the AHTD
offer for the ROW compensation and held out for an additional $10,000. It appeared that
this entire project was going to be put on hold and the back bumer if some compromise
couldn't be worked out.
With this project about to come to a halt, Mayor Coody brought three of the four
parties together and reached a compromise among the University, City and School District,
each of which would share in the cost of the additional $10,000 renovation expenses. The
School District would absorb $3,400, the University would contribute $3,300 and the City
would pay the district $3,300 for easements required of the distnct on the subject piece of
property. With this compromise, the school district signed the AHTD nght of way acquisition
documentation and this project is in the final stages before construction bid letting.
The University, with payment for the acquisition of the City's railroad right of way
between Garland and School Street, will include their portion of this obligation. The total
amount of that transaction will be $82,300, or $3,300 over the appraised amount of $79,000.
When the city acquires the easement required around Leverett School on Cleveland Street,
the School Distnct will be paid $6,600 by the City.
If you have any questions, give me a call at 444-3415.
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Date: 06-19-2002
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PROJECT
COUNTY
PARCEL 0
LOCATION
FEE OWNER
ADDRESS
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&PPRAISAI. REPORT
EUR
(`ITY /1F FAYFTTFYILLF
Complete Summary Appraisal Report
20° Sues
Washington
NA
Abandoned Raihoad ROW between S. School Ave. and S. Garland Ave
City of Fayetteville
113 W. Mountain, Fayetteville, AR 72701
ESTATE APPRAISED Fee Simple
AREA OF WHOLE
AREA OF PROPERTY
(Description attached)
7.86 aa.
7.86 acres
AREA OF RESIDUAL 0
ESTIMATED FAIR MARKET VALUE OF THE PROPERTY:
Before
Land
Improvements
Total
After
Land
Improvements
579,000
S NA
S 0
S NA
Total
FAIR MARKET VALUE OF PROPERTY
As or the 2nd day of May, 2002
ALLOCATION OF FAIR MARKET VALUE
Taal Acquisition 7.86 acs - or 342,382 sq.tt. ® S.23/sq.R
579,000
L 0
Taal Compensation
ATTACHMENTS:
- Certificate of Appraiser
Photographs
_2L Site, Improvement, NAB Use Narrative
Legal Descriptions
- Market Data Approach
_2L Site Drawing
Tax Assessment Cards
579,000
Say
178,748
579,000
579,000
Fayetteville, AR
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Sent by: BRONSON ABSTRAC . 479 442 8475;
BRONSON ABSTRACT CO., INC.
3810 FRONT STREET
SUITE 5 (501-442-2700)
FAYETTEVILLE AR 72703
To: CITY OF FAYETTEVILLE
113 E. MOUNTAIN
ATTN: ACCOUNTS PAYABLE
FAYETTEVILLE, AR 72701
07/11/024;
JflFan #599;Page 2/5
Invoice
Invoice No.: 6715
1
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THE BOARD OF TRUSTEES U OF A
TITLE SEARCH
Thank You
Invoice subtotal
Invoice total
100.00
100.00
473.50
473.50
..Sent' by: BRONSON ABSTRAC
is479 442 8475; 07/11/004; Jetfs: #599;Page 3/5
ALTA Commitment -10/17/1992 SCHEDULE A Commitment No.FATIC 2002--13254
1. Effective Date; JULY 1, 2002 at 7:00 A.M.
2. Policy or Policies to be issued: Amount
ALTA Owner's Policy (Amended 10-17-70)
Proposed Insured:
THE BOARD OF TRUSTEES OF THE UNIVERSITY OF ARKANSAS
ALTA Loan Policy (Amended 10-17-70) $
Proposed Insured:
$82,300.00
3. The estate or interest in the land described or referred to in this
Commitment and covered herein is a FEE SIMPLE.
4. Title to the FEE SIMPLE estate or interest in said land is at
the effective date hereof vested in:
THE CITY OF FAYETTEVILLE, ARKANSAS, a municipal corporation
5. The land referred to in this Commitment is situated in the County of
WASHINGTON, State of ARKANSAS, and is described as follows:
All that portion of The Burlington Northern and Santa Fe Failway Company's
(formerly St. Louis, San Francisco Railway Company) 100 foot wide Fayetteville
to Pettigrew, Arkansas Branch Line property, now discontinued, being 50 feet
wide on each side of said Railway Company's Main Track centerline as
originally located and constructed upon, over and across the Southwest Quarter
of the Southwest Quarter, the Southeast Quarter of the Southwest Quarter and
the Southwest Quarter of the Southeast Quarter of Section 21, Township 16
North, Range 30 West of the 5th Principal Meridian, Washington County,
Arkansas, bounded on the Easterly side by the centerline of State Highway No.
71 and bounded on the West by the West line of said Section 21.
COUNTERSIGNED BY:
BRONSON ABSTRACT COMPANY, INC.
28 EAST CENTER STREET
FAYETTEVILLE, AR. 72701
FIRST AMERICAN TITLE:
INSURANCE COMPANY
•
.Sgnt by: BRONSON ABSTRAC
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• 479 442 8475; 07/11/0211115; Jeffa #599;Page 4/5
.1
ALTA Commitment -10/17/1992 SCHEDULE B -I Commitment No.FATIC 2002-13254
The following are the requirements to be complied with:
1. Payment to, or for the account of, the sellers or mortgagors of the full
consideration for the estate or interest to be insured.
2. Instruments in insurable form which must be executed, delivered and duly
filed for record:
(a) Quitclaim deed conveying herein described land from the City of
Fayetteville, Arkansas, to the Board of Trustees of the University of
Arkansas.
BRONSON ABSTRACT COMPANY, INC.
28 EAST CENTER STREET
FAYETTEVILLE, AR. 72701
tx*******************xx*x********
FIRST AMERICAN TITLE
INSURANCE COMPANY
**'A**t**'*.wA A' w*x wwwww*Aw*x'A 'AA'*tA*
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Sent by; BRONSON ABSTRAC
•
479 442 8475; 07/11/0.05; hilfm #599; Page 5/5
ALTA Commitment -10/17/1992 SCHEDULE B -II Commitment No.FATIC 2002-13254
Schedule B of the policy or policies to be issued will contain exceptions
to -the following matters unless the same are disposed of to the satisfaction
of the Company:
1 Defects, liens, encumbrances, adverse claims or other matters, if any,
created, first appearing in the public records or attaching subsequent
to the effective date hereof but prior to the date the proposed
insured acquires for value of record the estate or interest or mortgage
thereon covered by this Commitment.
2 Rights or claims of parties in possession, boundary line disputes,
overlaps, encroachments, and any other matters not shown by the
public records which would be disclosed by an accurate survey and
inspection of the land described in Schedule A.
3 Easements, or claims of easements, not shown by the public records.
4 Any lien, or right to a lien, for services, labor or material heretofore
of hereafter furnished, imposed by law and not shown by the public
records.
5 Taxes or assessments which are not shown as existing liens by either
the public records or the records of any taxing authority that levies
taxes or assessments on real property.
6 Zoning ordinances, resolutions, lot split or lot line adjustment
regulations, and subdivision requirements of the municipality or
county in which the insured premises is located.
7 General Taxes for the year 2002 and subsequent years not ye: due
and payable.
8 The policy will not insure acreage, any mention thereof is for
descriptive purposes only.
•
BRONSON ABSTRACT COMPANY, INC.
, 28 EAST CENTER STREET
FAYETTEVILLE, AR. 72701
FIRST AMERICAN TITLE
INSURANCE COMPANY
II
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• STAFF REVIEW FORM •
_L AGENDA REQUEST
CONTRACT REVIEW
GRANT REVIEW
For the Fayetteville City Council meeting of August &20024
PROM:
Ed Cornell E e rin Public Works
ame msion partmen
ACTION REQUIRED: Passage of a Resolution approving the sale of 7.68 acres of abandoned railroad right of way between
Garland Ave. and South SchoolAve. to the University of Arkansas for $82,300 in conjunction with the expansion of the "Genesis
Center" and use of this corridor predominately for trail purposes. Income from this transaction will go toward the purchase of
the Meredith property on Nonnamaker Street (currently tabled pending determination of soil contaminations area). Approval
is for the above amount less closing costs.
COST TO CITY:
$ -82 300 ��3. General Fun avenue
ost o'j' ,S eques�— gteg "�ect gadget ategory ro� ame
lceount i-assl.oz 11GG--�
7�ccount um r Fun5s s o ate gram Name
N/A s tG 'S" General
Project Number emammg a once Fun
BU�pF#T IRE c it P: Budgeted Item _ Budget Adjustment Attached
YYYbV. VW_s.._...
CONTRACT/GRANT/LEASE REVIEW:
Administrative ernces vector
aTf
GRANTING AGENCY:
17 0
Date
at6 e
e �! c asmg cer ate
e2
STAFF RECOMMENDATION: This railroad corridor land was originally purchased b the City in 1999 for the purpose of
installing a trail from Garland to Armstrong Ave. in the Industrial Park. The trail project never materialized and it would
appear that a goodyortion of the trail will be put in by the university on this land. There is a Water/Sewer Easement In a portion
of the corridor which covers a city water line. The agreed price Is $3,300 in excess of the appraised value. Recommendation is
the approval of this sale as soon as possible.
0'% /%"O2
—�a(e Cross Reference
New Item: Yes_ jC No
j 9j�/
�Ll1 vPrev Ord/Res #:
a
7//f% Orig Contract Date:
Date
New 66
Ll
• Page 2
STAFF REVIEW FORM
Description Sale of railroad ROW to U of A: Garland Ave to School Ave Meeting Date August 6.2002
Comments:
Budget Coordinator
Accounting Manager
City Attorney
Purchasing Officer
ADA Coordinator
Internal Auditor
Reference Comments:
FAYETTEVI ?LE 40
ME CITY OF FAYETTEVILLE. ARKANSAS
DEPARTMENTAL CORRESPONDENCE
To: Ed Connell, Engineering Division
From: Heather Woodruff, City Clerk
Date: August 8, 2002
Please find attached a copy of Resolution No. 118-02 approving the sale of approximately 7.68
acres of abandoned railroad right-of-way to the University of Arkansas Board of Trustees. The
original will be microfilmed and filed with the City Clerk.
Per your request, I am returning both originals of the Quitclaim Deeds.
cc: Nancy Smith, Internal Audit
Jim Beavers, City Engineer
FAYETTEVItLE
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
DATE: May 2l, 2002
TO: Fayetteville City Couxpjlpymbers
THRU: Dan Coody, Mayor '
Ray Bordreaux, Aifport and Economic Development Director
John Maguire, Economic Development Coordinator
Greg Boettcher, Public Works Director
Jim Beavers, City Engineer
FROM: Ed Connell, Land Agent4'C%
RE: Research & Technology Park (South Fayetteville)
Property Sales and Acquisition
FYI — General Update
During the past few months, the City and the University of Arkansas have been in the process of
developing a plan that would provide for a Research & Technology Park area associated with Engineering
South "Genesis" Center. Much of this plan is still in the development stage, however, the areas of interest
by the University have been defined and both parties, in an effort of cooperation, are working toward that
means.
As of now, the University is looking toward a major expansion of the Engineering South facilities. Over
the past years, many a program has been developed by "Genesis", but minor and major business and
industrial development has gone elsewhere. The endeavor of the. U of A is to secure an area close to
"Genesis" for R & T purposes, thus the city has been called upon to help in securing an area for future
installation of intermediate or small industrial purposes. The U of A is looking to purchase properties
along School Avenue from Town Branch south to Cato Springs Road. To this endeavor, they purchased
two tracts of City land along Research Center Blvd. earlier this year. Some of that money was used,
indirectly, for the City to purchase 32+/- acres on the east side of School Ave. from Mr. Bryan Walker 1I1.
This area is part of the U of A plan, however, their plan extends further south to include properties around
Nonnamaker Dr. down to the north side of 22a" Street.
Mr. And Mrs. Kenneth Easterling own about 25 acres on the north and east sides of the "Genesis" Center.
The U of A is currently in negotiations with Mr. Easterling for this acquisition. The have recently
purchased two parcels of land from Dash Goff along School Ave. Eventually, they would like to go both
east and west from the Research Center in the acquisition of land to go into this R & T Park. As parcels
come on the market, they have the approval to make offers for this purpose. Part of the area they wish to
acquire is the 100 foot wide abandoned railroad right of way that goes from Garland Ave. to School St.
and is owned, by QCD, by the City. The City acquired this ROW in 1999 from Burlington Northern/ Santa
Fe Railroad, the initial purpose was to develop a trail to the Industrial Park. The Railroad would only
convey this in Quit Claim Deed, thus the city can only convey in QCD. The U of A has indicated that they
Research & Technology Park — South
FYI
Page 2 of 2
plan'the installation of a trail along Town Creek in conjunction with the development of a recreation park
on the Easterling property, north of the railroad corridor. It has been decided that this railroad bed will not
be used for the installation of a new track to the Industrial Park The City has obtained an independent
appraisal of this 7.68 acres of RR ROW, that being $79,000. At this point, it is the intention of the
administration to sell the railroad right of way to the University and use such monies toward the purchase
of a track of land (w/building) at the comer of Nonnamaker & S. School.
The property the city wishes to purchase belongs to Darrel and Ethel Meredith and was formerly used by
the World Wrestling Federation on lease from Meredith. This property has been listed "For Sale" and
according to the listing agent, a number of interested parties are looking at it for investment purposes. The
parcel(s) is part of the area to be acquired for the R & T Park and it is considered prudent to move on this
tract at the time it is for sale. An independent appraisal put the fair market value at $120,000. This
includes 0.44 acre of land and a main building of approximately 3,450 ft2. The City is currently leasing
space from Lazenby for storing equipment and this building can be used for that purpose. Some work
(overhead door replacement) will be required on the building but it is in reasonable to good shape for the
most part.
The city is preparing to make an offer of $120,000 to Mr. and Mrs. Meredith on this property. Although
other offers are pending, Mr. Meredith would prefer to work with the city, especially since the area has
been designated for the eventual development of an R & T Park. The purchase of this property will not
require new or additional public funds. In January, 2002, the city sold to the University two tracts of land
for $459,000. Of that income, $360,000 was used in the purchase of 32 acres from Bryan Walker III on
19i° and School, leaving a balance into the reserve fund of $ 99,000. Of that reserve, $25,000 was used
for the Pay Plan Review, leaving a net balance in the reserve fund, from the above source, of $74,000. We
anticipate an overall cost of approximately $129,000 for the purchase of, environmental testing and some
minor repair work on the Meredith property. As indicated above, the sale of the railroad right of way will
bring in approx. $79,000, and the remaining $50,000 will come from the reserve fund, leaving a net
positive balance of $24,000. Of that balance, appro0ximately $ 10,000-11,000 will be required to do the
demolition and disposal of the old buildings on the Walker property.
To / From
Balance in
Activity
Value
Reserve
Fund
Reserve
Fd.*
1. Sale of 20t° Street Properties to U of A
459,000
459,000
459,000
2. Purchase of Walker Property
360,000
-360,000
99.000
3. Pay Plan Review
25,000
- 25,000
74,000
4. Sale of RR ROW to U of A
79,000
79,000
154,000
5. Purchase of Meredith Property
120,000
-120,000
34,000
6. Meredith Prop. other Expenses
9,000
- 9,000
25,000
7. Walker Prop Demo. & Disp.
11,000
- 11,000
14,000
* South Research
& Development Park activities
Within the next month, agenda items will be presented to the City
Council for (1) the sale
of the railroad
right of way between Garland and School to the
U of A and (2) the purchase of the Meredith property. At
this point, the administration does not anticipate
any additional purchases in this area for the
year 2002 due
to limited resources. We will, however, be looking into obtaining
independent appraisals
for the 8-9
outstanding parcels
that
will
constitute the remainder of the
R & T Park.
• •
1
City of Fayetteville
Press Release RECEIVED
June 14, 2002 jIlh 1 4 ,'102
CITY OF FAYE'i . _VILLE
Immediate Release CITYCLERICSCFrICE
Wilson Spring Business Park Assessment Task Force
I have formed a Task Force to evaluate from an independent perspective the
environmental and economic issues that are before the community concerning the
Wilson Spring Business Park.
There are many issues to evaluate within the scope of this assessment. These include
the protection and enhancement of the habitat of a species that may become listed as
endangered; the economic viability of the business park development; public/private
partnerships in the development of this business park; the need for local government to
be involved with job creation and business investment; and other issues that the
assessment team will consider within the scope of their work.
The purpose of this assessment is to evaluate the costs and benefits of development of
the Wilson Spring Business Park. This assessment will include an evaluation of all
costs and benefits of the project including development and environmental costs as well
as all benefits including job creation and environmental preservation and protection and
other issues that the assessment team feels are relevant to an unbiased appraisal of this
project.
There are several public goals that have been established for this project. These goals
are:
• Diversify the local economy and create additional tax base for the
community. This goal is inherent with the creation of jobs that will attract and
retain the human capital that we currently export each year to Dallas, Austin,
Kansas City, and the other leading edge economic engines of the nation. We
must create the type of business infrastructure that will permit and encourage the
creation of those jobs that can and will utilize the talented resources that each
year leave Fayetteville and the State to find adequate, high paying and
satisfying employment.
• Encourage an environment for business/home office development in
Fayetteville.
• Preserve 100 acres of land surrounding the environmentally sensitive habitat
of the Arkansas Darter, a candidate for listing as an endangered species.
• Develop a model of business coexisting with ecological preservation and
enhancement. This model can serve as a demonstration of the manner in which
growth and environmental conservation can both be promoted.
• Recover investment in the property, both purchase and all development costs.
Additionally, the profits from the sale of land could be utilized to fund other
06-14-02P03:03 RCVD
i
environmental activities, such as trail development, acquisition of sensitive
lands, and promotion of other quality of life issues, which otherwise could not
be funded.
The assessment team will establish its own process and procedure for conducting this
assessment. I hope that the assessment team can report their findings to the City
Council by August 6, but in any event not later than August 20, 2002.
The Assessment Team membership is a balance between various groups who have
expressed interest in this project or who have particular expertise in evaluating
environmental or economic problems. The Assessment Team has been established by
the Mayor's Office and is, in my opinion, an objective group representing a variety of
interests. I have asked two individuals to co-chair the Assessment Team; these are Jeff
Collins, PhD, from the Walton School of Business, and Mike Fuhr, Director of Aquatic
Conservation, Arkansas Chapter of the Nature Conservancy.
The remainder of the team is of similar stature. I feel that there is a balance between
various "stakeholder" groups, banking, development, environmental, and
professional/technical.
The Assessment Team is comprised of:
Jeff Collins Co -Chair
Walton School of Business
Mike Fuhr Co -Chair
Nature Conservancy
Jim Lindsay
Development Sector
Phil Stafford
Technical Genesis
Jim Irwin
Development Sector
John Lewis
Banking
Cathy Foraker
Technical, SWBT
PeteHeinzelmann
Environmental
Duane Woltjen
Sierra Club
Tom McKinney
Sierra Club
Jon Johnson
Sierra Club and Business
I am excited about the opportunities before us. I am also confident that this process will
bring forward a consolidated assessment of this project so that the community can move
forward either toward this development or toward other activities that demand the
public's attention.
Dan Coody, Mayor
City of Fayetteville
Contact: Gary Dumas, General Services Director 479-575-8330
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Wilson Spring Business Park
Frequently Asked Questions
Environment
1. We ask the City to propose no impact on the wetlands and, therefore, no mitigation. While
this may cost the City several acres of hypothetically saleable land, it will at the same time
save the City tens of thousands of dollars in mitigation costs as well as infrastructure costs
connected to filling and stabilization. We have seen no economic information that would
justify the development of the wetlands.
Response: A Zero Impact option has been developed. This option was concurred with Andrea
Radwell and Tom McKinney on April 10, at the second meeting with the environmental
community in the offices of McClelland Engineers, others present were Don Bunch of the
Fayetteville Planning Commission and MCE staff. Copies of the concept layout were provided
to Tom McKinney several days later for his use. The individuals present seemed to understand
that street layout, preliminary cost, mitigation requirements, if any, and benefit cost analysis
would be developed. That benefit cost analysis is approaching conclusion, at this time awaiting
the completion and a professional and competent development appraisal. When the appraisal is
received the benefit cost analysis will be completed and provided to the City Council so that the
project can be evaluated before proceeding further.
2. We ask the City to contemplate ONLY development that is LIMITED and AWAY FROM
the wetlands. We have seen no hydrological information that supports the City's
contention that the wetlands will not be harmed in the long run by development of this
area, nor an interest in performing professional environmental assessments of the
biological and ecological aspects of this property. We believe that the information presently
available is insufficient to assure protection. We do not understand why the City does not
support its proposal with more impressive data.
Response: Only very limited wetland is proposed to be impacted by the 17 -acre wetland impact
scenario. This design concept was developed during conversation with members of the
environmental community; Andrea Radwell and Tom McKinney, on April 10, at the second
meeting in the offices of McClelland Engineers, others present were Don Bunch of the
Fayetteville Planning Commission and MCE staff. Copies of this concept layout were provided
to Tom McKinney several days later for his use. This 17 -acre impact concept was developed
based upon comments from these environmental representatives. The concerns expressed were
taken into consideration. The wetlands impacted are upland and prior disturbance is evident on
the majority of this generally lower quality wetland area.
3. We do not know why the City has put this project on a "fast track". We have been given
information to the effect that there is no deadline attached to the "grant"promised for
next fall. We ask the City to take the project off "fast track" and concentrate on gathering
all information (economic as well as environmental) that might justify or argue against
this project as planned. If there is a deadline, we would like to see that in writing from the
granting authority.
Response: It is apparent from the time that the City has been taking to discuss with all interested
parties, that this project is not on a "fast track." That does not mean however that the project
should languish. The City is committed to developing an environmentally responsible and
economically viable project. A project that while protecting the Arkansas Darter and potentially
removing it from the "threatened species" list will also generate the creation of jobs with a
livable wage, that will help in retaining our youth and in creating a business environment that
will compete effectively with the remainder of the I-540 corridor.
4. We ask the City to justify its claim that the appraisal of this property at $10,000 /Acre is
"bogus' If the City has quotations of the selling price of wetland acres near this project
site, we would like to see them in writing with a documented source.
Response: Whether the residential appraisal is valid or not, the perception is that it is not, based
upon the actual sale of a lot within the project area to a local software firm. This lot (sold for
$40,000/acre) was subsequently repurchased from the buyer because the City could not complete
the infrastructure improvements at that time due to project controversy. In order to satisfy its
fiduciary responsibility to the taxpayers and citizens of Fayetteville, a new appraisal has been
ordered. This appraisal will form the basis of the benefit cost analysis that will provide the City
Council with some of the information necessary to form the decision on whether to proceed with
the project or not.
5. Comments received from public agencies and from private 501c3's during the 404
comment period (Spring 2000) included requests that conservation easements held by (a)
501c3 conservation organization(s) be applied to the wetlands and to all mitigation areas.
We ask that the City pledge to do this and begin immediately working with the Nature
Conservancy or a similar entity qualified to hold conservation easements.
Response: It is true that a conservation easement will be developed for any wetland
preservation area. It is also true that the City will be ultimately responsible for the maintenance
of the wetland area and therefore any agreement with another agency to manage any preservation
area will need to be carefully considered. The Arkansas Department of Game and Fish will be a
likely tenant of the development if it comes to fruition in the near future. This State agency is
also a likely organization to manage the preservation easement. However, until there is a project,
until the Council has agreed to a plan that requires mitigation and therefore a Corps 404 permit,
until the mitigation plan has been developed and approved by Corps, any negotiation with an
agency to manage the wetland for the City of Fayetteville would seem premature.
6. We ask the City to take the initiative in asking fora meeting with US Fish and Wildlife
within the next 2 weeks to discuss the Candidate Conservation Agreement for the Arkansas
darter. We would also like clarification of who is doing the work presently on this CCA
and on progress that may have been made.
Response: The City has agreed with the U. S. Fish and Wildlife to voluntarily develop a
candidate conservation agreement to outline the City of Fayetteville's actions to protect the
threatened Arkansas Darter species. This agreement is currently being placed in outline form by
U. S. Fish and Wildlife so that when the project is authorized by the City Council to move
forward, the agreement may be developed as expeditiously as possible. Again, until the project
is authorized by the Council it is premature to develop a plan of action based on construction or
wetland preservation agreements that may not occur. Other unassociated construction activities
on the project site such as the sewer line to the new sewer plant will be required to amend any
plan developed as part of this project or if this project does not proceed, then to develop the
conservation agreement for the sewer line project construction. Again any action to spend
resources or funds to develop this agreement would seem to be premature.
7. There has been no public discussion of the relationship between the two 404 permit
applications, i.e. the permit for the B & Tpark wetlands and the permit that will be
required for the large sewer line that we understand will run through the B & Tpark area
carrying sewage to the new Westside treatment plant. We do not believe it should be routed
through or near a wetland. We believe further that the 404 permitting process now
underway for the B & TPark wetlands mitigation will be invalid if the sewer line is to be
run through these same wetlands. We request a map showing the proposed location of the
sewer treatment line as well as clarification of the relationship of the two 404 permit
applications.
Response: There have been numerous discussions with the Corps of Engineers, who are
responsible for 404 permit review. Discussions have also been held between the U.S. Fish and
Wildlife and the sewer line project team to make certain that their work is proceeding in a
manner which addresses the concerns of the U. S. Fish and Wildlife. Yes, there will be a
separate 404 permit for the entire sewer plant project. Yes, of course the wetland in the business
park, which will be under the restrictions of the conservation easement, will be protected by
means appropriate for sewer line construction. As these documents are developed they can be
reviewed. The request is at this time premature until the Council has agreed to go forward with
the business park project and the layout for Truckers Lane (also the most likely route for the
sewer line) is designed.
Economy
1. The City has not presented any in-depth data about its prospects for the future of the
project once the proposed mitigation and infrastructure have been completed. We request
answers to the following questions about the economics and the future development of the
"park":
Response: There have been many public comments concerning the purpose of this project.
Some of those comments have been visionary; i.e., attempting to create an expanding business
environment which can provide opportunities for job growth for the community's young people,
so that they will not need to move to Dallas, or Austin, or Kansas City or Chicago to find craft,
technical, and professional jobs which paya livable wage and better; some have been aesthetic;
wanting Fayetteville's exposure to the I-540 corridor to be as attractive and presentable as that of
some of our neighbors to the north, such as Pinnacle Point in Rogers for example; some have
been practical; wanting to create a development which truly represented the commitment of the
City of Fayetteville and its citizens toward environmental preservation and balanced land
development in a manner that benefited all parties and in a process that indicated the maturity of
the community and its ability to resolve complex issues in an equitable and sincere process.
1. What is the purpose of the business technology park? How does the city benefit from its
development?
Response: Perhaps the name of the project business and technology has created some
confusion. Its purpose is to create job opportunities in a campus style business park
environment. Those job opportunities will most likely come from office development, perhaps
with software developers, or perhaps craftsmen or professionals involved with dental; or optical,
or medical laboratories, or any number of existing employment opportunities that will offer jobs
with livable and better wages to keep and attract the communities young people and graduates
from the university. The benefits of this kind of business park seem self evident.
Additionally the purpose is to create a campus style development which will be competitive with
quality and amenities to the most attractive and successful business developments along the I-
540 corridor.
Perhaps the most significant purpose of this proposed project is the demonstration between the
ecology and capital motivation, both working together to build a development that accomplishes
the objective of enhancing environmental quality'while creating a business park that not only
accomplishes its objectives of appropriate job creation but also returns capital to the City for
additional programs.
3. How is this project dii ferent from the other business parks in the region?
Response: This project is different from other business parks in the region in that it is in
Fayetteville. The City Administration is of the opinion that Fayetteville should be an attractive
place for job creation, that even though we have the University, there remains a need to create a
diversified economy, to capitalize upon the opportunities that exist within the region but at the
same time create a unique opportunity for those businesses that want to grow and prosper in
Fayetteville. Certainly there are other business parks in the region that offer many amenities.
The Administration believes that this business park can match those amenities offered in other
parks of the region and state and can offer other features which set it uniquely apart from the
others. These features include its environmental design, it proximity to easily available
redundant single mode fiber optic cable access, its campus atmosphere, and the availability of
highly educated and talented human capital in the form of University graduates and teaching
staff.
4. How is this project different from the nearby, privately developed CMN Business Park?
Response: The CMN Business Park is a highly successful development. Its focus to date has
been toward retail activities. The focus of this project is toward business development, those
opportunities will most likely come from office development, perhaps with software developers,
or perhaps craftsmen or professionals involved with dental, or optical, or medical laboratories, or
any number of existing employment opportunities that will offer jobs with livable and better
wages to keep and attract the communities young people and graduates from the university.
Certainly there are business opportunities which each of us can envision, but at the same time
there are opportunities that have not yet been envisioned, this is the place that they can grow and
develop and become a part of our community.
5. What type of businesses are you expecting to buy lots in the park (give specific examples)?
Response: The focus of this project is toward business development, those opportunities will
most likely come from office development, perhaps with software developers, or perhaps
craftsmen or professionals involved with dental, or optical, or medical laboratories, or any
number of existing employment opportunities that will offer jobs with livable and better wages to
keep and attract the communities young people and graduates from the university. Certainly
there are business opportunities which each of us can envision, but at the same time there are
opportunities that have not yet been envisioned, this is the place that they can grow and develop
and become a part of our community.
6. What/where is your market? Is it growing, shrinking or staying the same?
Response: The market for this project is not fixed; it is and will constantly evolve even after
build out. By the question it seems that there are those who think that Fayetteville is stuck in
time and perhaps we have been in the past. This administration is now looking to the future and
we feel that if Fayetteville is to continue to prosper, we must recognize (by looking at building
permits, sales tax receipts, an other indicators of economic vitality) that we as a City may lose
our dominance in the region, even with the University, if we do not create opportunities for job
and business growth. Certainly we must be watchful of the jobs that we create to make certain
that they provide a livable or better wage, but more, that they are the type of business enterprise
that promotes the quality of life which does define Fayetteville.
7. How much -will a lot cost per acre? How will that price compare to similar lots in
Fayetteville (e.g., CMN, south industrial park, airport and Genesis), Bentonville, Rogers,
Ft. Smith etc.?
Response: The cost per lot will be determined by the development appraisal currently being
developed.
8. Is high bandwidth fiber optic cable (such as the type located near the BIT park), available
elsewhere in the city/county/region/state?
Response: Various people have commented that the fiber optic cable which exists through the
project area is outdated and will not be the state of the art communication system of the future.
To be perfectly honest, I do not know what the communication future will be. What those who
do know have said is that the system in place can and will serve the communication needs of the
tenants of this park for the foreseeable future. The cable in place is a redundant single mode
fiber optic cable system that is a part of the overall system which serves the City of Fayetteville.
While it may or may not have the capabilities to serve the unknown future, it currently is a part
of the backbone fiber network serving Fayetteville, its businesses, its industry, and its residents.
Convenient, nearby, easy access to this backbone would seem to be a significant attribute.
9. How much money does the city currently have to invest in the park? How much does the
city expect to invest in the park by the time it is fully completed? What will be the major
source(s) of public funding for the BIT Park?
Response: There is currently approximately $1.9 million budgeted for the first phase of the
infrastructure development for the park. Approximately $700,000 of that is grant funds secured
from the State. The most recent very preliminary engineering cost estimate is between $8 and $9
million. Funding for future phases for infrastructure development is expected to come from
proceeds from the initial phase. The funding for phase 2 will be generated by the revenue
generated from phase 1. Phase 3 and subsequent phases will be similar funded by preceding
phases.
10. What do you expect the average square foot costs to be for office space located in the park?
Response: That is unknown and will be determined by the individual developers who buy the
lots and build the structures. Earlier analysis done by others anticipated 1,000,000 square feet of
development on the first 122 acres developed. These improvements were expected to require a
capital investment of at least $150,000,000.
11. How many square feet of new facilities are expected to be built in the park? How much of
an investment (in dollars) will be required for a fully developed park (include buildings
and infrastructure costs)?
Response: There is currently approximately $1.9 million budgeted for the first phase of the
infrastructure development for the park. Approximately $700,000 of that is grant funds secured
from the State. The most recent very preliminary engineering cost estimate is between $8 and $9
million. Funding for future phases for infrastructure development is expected to come from
proceeds from the initial phase. The funding for phase 2 will be generated by the revenue
generated from phase 1. Phase 3 and subsequent phases will be similar funded by preceding
phases. The square footage build out will be determined by the individual developers who buy
the lots and build the structures. Those costs will also be borne by them. Analysis done by
others expects this build out cost to be in excess of $150,000,000 for the first 122 acres
developed.
12. Is there a 5 -year cash flow analysis for the BIT Park?
Response: Phase 1, with an approximate cost of $1.9 million will be built initially, with
construction beginning in the winter of 2002-2003. Phase 2 will begin when funds from the sale
of lots'in Phase I are sufficient of cover the construction costs.
13. How many jobs do you expect the BIT Park to create? How much will the city invest for
each job created? Is the cost/job within acceptable standards for a business park?
Response: The proposal at this time is for the project to be self supporting. If the project goes
forward, the value of the property after infrastructure improvements will greater than the cost of
the land and the construction costs. While some land may be discounted in order to generate
appropriate development, the project should return all costs to the City. Analysis performed by
others expects that the first 1,000,000 square feet of building space will provide jobs for
approximately 2,500 people. That is 400 square feet per employee. The average individual
salary is expected to be approximately $45,000. The benefit cost analysis, performed by others,
anticipates that the cost per job will be approximately $3,600. They further found that this ratio
is within acceptable standards typically embraced by State and Federal funding agencies.
14. What do you expect the average salary to be for employees working in the park?
Response: Analysis performed by others expects that the first 1,000,000 square feet of building
0
L�
space will provide jobs for approximately 2,500 people. That is 400 square feet per employee.
The average individual salary is expected to be approximately $45,000.
15. Who will administer the design/building/management/marketing of the park? What are
their qualifications?
Response: The development of the park design and construction will be managed by Gary
Dumas, the City's General Services Director. He has experience as a planner and public works
director and has helped to guide projects through design, approval and construction. The
management and marketing of the park, as each phase is constructed, will be Ray Boudreaux, the
City's Economic Developer and Airport Manager. He has held a similar position in another
community.
16. How will you determine if the park is successful?
Response: Success will be determined by occupancy of the park by businesses that are
contributing to the City of Fayetteville's quality of life, businesses that are providing jobs that
are paying a livable wage and better, business that at helping the community retain its youth,
businesses that are capitalizing upon the assets of the University, businesses that are proud to be
a integral part of the regions first environment business park. Additionally success will be
measured in the positive cash flow of phases 1 and 2 and the initiation of construction on Phase 3
within 5 years.
Public Process
1. We have requested on several occasions that the City clearly define a process to engage
interested parties from the public sector to be involved in further planning of this project.
We reiterate this request.
Response: There have been two public meetings on this project in the Town Center this year;
there have been numerous discussions before the City Council, at the City Council's request.
Members of the environmental community were included in two planning meetings where the
final wetland impact was resolved and where their input was sought and included in that design,
there have been three meetings on the site where a variety of features have been discussed and
where with some discussion an apparent nesting area for the Henslow Sparrow is proposed to be
preserved.
Five months ago, at the initiation of this projects rebirth, approximately 45 acres of wetland were
to be disturbed within a typical business subdivision using typical design and construction
techniques, through much review and research and public discussion, such items as permeable
pavement for parking lots, drainage swales, rain gardens, minimal underground drainage, and a
reduction of wetland impact to approximately 17 acres is now being considered. At some point
the project must move forward or Fayetteville can truly claim the moniker of "most difficult
town to develop in." I do not want that legacy; rather I would prefer the legacy of "Fayetteville,
environmentally aware, balancing the needs of the environment and business growth with a
common sense approach to problem solving".
015 04 City of Fayetteville 8/12/2002
Maintenance/Inquiry 11:31:51
Document Ite Action
Reference Date Ref. Taken Brief Description
RES 8/06/2002 118 SALE ABANDOND RAILROAD RIGHT OF WAY
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Keywords..... . . . . . . . . . : RES. 118-02
SALE
7.68 ACRES
ABANDONED
RAILROAD
RIGHT-OF-WAY
UNIVERSITY OF ARKANSAS
BOARD OF TRUSTEES
$82,300.00
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security Class........: Retention Type:
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