HomeMy WebLinkAbout111-17 RESOLUTION113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 111-17
File Number: 2017-0211
FAYETTEVILLE COMMERCE PARK LAND SALE:
A RESOLUTION TO SELL ABOUT 5 ACRES OF LAND IN THE COMMERCE DISTRICT TO AR -
CANNA, LLC FOR $75,000.00 CONTINGENT ON AR -CANNA, LLC RECEIVING A MEDICAL
MARIJUANA CULTIVATION FACILITY LICENSE FROM THE STATE OF ARKANSAS
WHEREAS, AR -Canna, LLC has offered to purchase approximately 5 acres in the Commerce District and
plans to build a 30,000 -square foot medical marijuana cultivation and processing facility and a 5,000 -square
foot office complex contingent upon receiving a license from the State of Arkansas; and
WHEREAS, the proposed project would lead to the hiring of workers with average wages above the state
and national averages with a minimum annual payroll of $1.2 million when fully operational, meets the
Fayetteville First target sector of Entrepreneurship, and is supported by the Fayetteville Chamber of
Commerce; and
WHEREAS, the City is selling this 5 -acre parcel at a discount of about $5,000.00 per acre from its normal
selling price but the contract with AR -Canna, LLC includes a clawback provision that could allow the City
to be paid back a portion of the discounted price in the event the property is sold within ten years.
NOW, THEREFORE 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 Land Sale
Agreement (attached to this Resolution and made a part hereof) for the sale of about 5 acres to AR -Canna,
LLC for $75,000.00, contingent upon AR -Canna, LLC receiving a medical marijuana cultivation facility
license from the State of Arkansas, and authorizes Mayor Jordan to sign the Land Sale Agreement,
Page 1 Printed on 5/17/17
Resolution: 111-17
File Number: 2017-0211
Warranty Deed and any other documents necessary to convey this 5 -acre parcel.
PASSED and APPROVED on 5/16/2017
Attest:
Sondra E. Smith, City Clerk Treasurer
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Page 2 Printed on 5/17/17
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Text File
File Number: 2017-0211
Agenda Date: 5/16/2017 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Resolution
Agenda Number: B 3
FAYETTEVILLE COMMERCE PARK LAND SALE:
A RESOLUTION TO SELL ABOUT 5 ACRES OF LAND IN THE COMMERCE DISTRICT TO
AR -CANNA, LLC FOR $75,000.00 CONTINGENT ON AR -CANNA, LLC RECEIVING A
MEDICAL MARIJUANA CULTIVATION FACILITY LICENSE FROM THE STATE OF
ARKANSAS
WHEREAS, AR -Canna, LLC has offered to purchase approximately 5 acres in the Commerce District
and plans to build a 30,000 square foot medical marijuana cultivation and processing facility and a
5,000 square foot office complex contingent upon receiving a license from the State of Arkansas; and
WHEREAS, the proposed project would lead to the hiring of workers with average wages above the
state and national averages with a minimum annual payroll of $1.2 million when fully operational,
meets the Fayetteville First target sector of Entrepreneurship, and is supported by the Fayetteville
Chamber of Commerce; and
WHEREAS, the City is selling this 5 acre parcel at a discount of about $5,000.00 per acre from its
normal selling price but the contract with AR -Canna, LLC includes a clawback provision that could
allow the City to be paid back a portion of the discounted price in the event the property is sold within
ten years.
NOW, THEREFORE 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 Land Sale
Agreement (attached to this Resolution and made a part hereof) for the sale of about 5 acres to
AR -Canna, LLC for $75,000.00, contingent upon AR -Canna, LLC receiving a medical marijuana
cultivation facility license from the State of Arkansas, and authorizes Mayor Jordan to sign the Land
Sale Agreement, Warranty Deed and any other documents necessary to convey this 5 acre parcel.
City of Fayetteville, Arkansas Page 1 Printed on 5/17/2017
City of Fayetteville Staff Review Form
2017-0211
Legistar File ID
5/2/2017
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Andrew Garner 4/14/2017
City Planning /
Development Services Department
Submitted By Submitted Date Division / Department
Action Recommendation:
Approval of a resolution to sell approximately 5 acres of land (part of parcel 765-16578-001) in the Fayetteville
Commerce Park located east of 2435 S.Industrial Drive to Brian Faught, Executive Vice President of Adcomm for
$75,000.
Budget Impact:
Account Number Fund
Project Number Project Title
Budgeted Item? NA Current Budget $
Funds Obligated $ -
Current Balance
Does item have a cost? No Item Cost
Budget Adjustment Attached? NA Budget Adjustment
Remaining Budget
V20140710
Previous Ordinance or Resolution # 143-13
Original Contract Number: Approval Date:
Comments:
CITY OF
I vT1
7ay7e
ARKANSAS
MEETING OF MAY 2, 2017
TO: Mayor and City Council
THRU: Don Marr, Chief of Staff
CITY COUNCIL AGENDA MEMO
FROM: Andrew Garner, City Planning Director
DATE: May 2, 2017
SUBJECT: Sale of 5 acres of land in the Commerce District to Brian Faught, Executive
Vice President of Adcomm
RECOMMENDATION:
City Staff recommends approval of a contract with Brian Faught, Executive Vice President of
Adcomm for the sale of approximately 5 acres of land owned by the City of Fayetteville east of
2435 Industrial Drive in the Fayetteville Commerce Park, for a purchase price of $75,000.
BACKGROUND:
The property (part of parcel 765-16578-001) is located on an undeveloped parcel east of the City's
Water and Sewer Building at 2435 Industrial Drive. The City was recently approached by Brian
Faught to purchase this property. Mr. Faught is the Executive Vice President of Adcomm and
intends to develop the property under his new company, AR -Canna, with a medical marijuana
cultivation facility. The company's plans include the following:
• Construction of a 30,000 sq. ft. medical marijuana cultivation and processing plant, using
local construction labor.
• Construction of a 5,000 sq. ft. office complex, using local construction labor.
• Hiring the following employees:
0 35-40 hourly employees at a starting wage of $15.00 per hour.
0 3-5 managerial employees with an annual salary in the $50,000-$75,000 range.
0 2 senior managerial positions with an annual salary in the $75,000-$125,000
range.
■ AR -Canna is using a Fayetteville architecture firm for the plans and construction drawings
for both facilities.
• AR -Canna will hire a local contractor to oversee all aspects of the construction.
■ Phase 1 is to build these two facilities now, and with the 5 acres there is room to build a
second and third cultivation facility as the industry matures.
DISCUSSION:
The attached land sale agreement has been reached through negotiations between the City and
Brian Faught, representing the entity purchasing the property. The proposal is to sell the property
for approximately $15,000 per acre, at a total price of $75,000. This price represents a reduced
rate from the currently advertised $20,000 per acre of land in the Commerce District, but reflects
the purchase price that the City Council approved for a nearby parcel in 2013 to Pacific Vet Group
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
when that company was looking to locate on the property. The Mayor's office is excited to
welcome a new, clean industry to Fayetteville, meeting the goals of our Fayetteville First economic
development plan, particularly in the Specialized Technologies sector offering competitive wages.
The staff believes a development of this type on the property will increase property value,
contribute to our tax base and overall have a positive economic impact for Fayetteville as the
Commerce District continues to develop over time.
City Code §34.27 establishes requirements regarding public notice and procedure for the sale of
real property owned by the City of Fayetteville. City staff has performed all necessary public
notification procedures in compliance with this- city ordinance (documentation attached).
Additionally, the City Council must establish that this land is no longer needed for municipal
purposes. As a purpose of the Commerce District is to encourage economic development that
generates revenue for the City by providing new and expanded services, and finding that there is
no identified use for the subject property for municipal purposes, this land is no longer needed for
municipal purposes.
BUDGET/STAFF IMPACT:
$75,000 in sale revenue will be paid to the fund that maintains ownership of the land.
Attachments:
• Land Sale Agreement
• Offer Letter
• Proof of Public Notice (sign, letter, and newspaper notice)
• Location Map(s)
BEA
OFFICE OF THE
CITY ATTORNEY
DEPARTMENTAL CORRESPONDENCE
TO: Mayor Jordan
City Council
CC: Don Marr, Chief of Staff
Devin Howland, Director of Economic Vitality
FROM: Blake Pennington, Assistant City Attorne
DATE: May 2, 2017
RE: AR -Canna LLC Land Sale Agreement
Kit Williams
City Attorney
Blake Pennington
Assistant City Attorney
Rhonda Lynch
Paralegal
Further discussions with Brian Faught, who is the President and Chief
Executive Officer of AR -Canna LLC, and the Chamber of Commerce have
led to some revisions to the land sale agreement for 5 acres in the Commerce
District. At the Administration's direction, our office prepared the attached
revised contract which has been signed by Mr. Faught. The material changes
to the contract that was included in the agenda packet are as follows:
Section 1: (a) The City will no longer reserve an 80 -foot right of way along
the west side of the property. AR -Canna's proposed development site has
been shifted west about 45 feet and will now abut a 35 foot gas easement.
The City and future owners of property on the interior site will be granted a
30 foot access easement along the west property line of the development site;
and (b) AR -Canna will have a right of first refusal to the property
immediately east of the 5 acre development site. If the City receives an offer
for the property, we will immediately transmit that to AR -Canna, which will
then have 30 days to match the offer.
Section 6: AR -Canna is responsible for obtaining a survey within thirty
days of the execution of the land sale agreement by the Mayor rather than 7
days before closing.
Page 2, AR -Canna LLC Land Sale
Section 9: AR -Canna will no longer be required to build to City street
standards but will be required to build a driveway to the City's
specifications within the access easement. If property to the south is
purchased and the new owner is ready to develop before AR -Canna, that
owner may, at its own cost, build the driveway from South Industrial Drive
through the AR -Canna property to other property on the interior of this
parcel.
Section 10: If AR -Canna has not received a medical marijuana cultivation
facility license by December 31, 2017, the land sale agreement may be
terminated by either party without penalty.
z
LAND SALE AGREEMENT
This Land Sale Agreement is made and entered into by and between the City of Fayetteville,
Arkansas, a municipal corporation of the State of Arkansas (hereinafter "City" or "Fayetteville")
and AR -Canna LLC.
The City of Fayetteville agrees to sell a parcel of about 5 acres in the Fayetteville Commerce
District to AR -Canna LLC for SEVENTY-FIVE THOUSAND DOLLARS ($75,000.00) and AR -
Canna LLC's performance of all of the terms, conditions and promises set forth in this Agreement.
AR -Canna LLC agrees to pay to the City of Fayetteville SEVENTY-FIVE THOUSAND
DOLLARS ($75,000.00) for this 5 acre parcel and to perform all of the terms, conditions and
promises set forth later in this Agreement.
TERMS AND CONDITIONS
1. Sale
Subject to existing easements and rights of way and subject to the terms and conditions, mutual
promises and covenants of this Agreement, the City of Fayetteville agrees to sell a parcel of about
5 acres (hereinafter the "Development Site") located in the Fayetteville Commerce District by
warranty deed to AR -Canna LLC for the amount of SEVENTY-FIVE THOUSAND DOLLARS
($75,000.00). This Development Site is shown on the map attached as Exhibit A and shall be more
particularly described in a survey obtained by AR -Canna LLC prior to closing.
The Development Site shall be located immediately to the east of a 35 -foot utility easement in
favor of Arkansas Western Gas Company, now known as Black Hills Energy. The City shall retain
ownership of the land subject to the utility easement and shall grant AR -Canna, LLC an easement
for access at one point along South Industrial Drive. Access across the utility easement shall be
subject to approval by Black Hills Energy or its successor.
The Development Site shall include access easements in favor of the City of Fayetteville, its
successors and assigns, the general public, and any future owners of the remaining property
identified in the Washington County land records as Parcel Nos. 765-16578-001, 765-15312-001
and 765-16578-000. A 30 -foot access easement shall extend from the northwest corner of the
Development Parcel to the southwest corner and a 15 -foot access easement shall extend from the
southwest corner to the southeast corner as shown in Exhibit A.
AR -Canna LLC shall have the right of first refusal with respect to the purchase of land owned by
the City immediately east of the Development Site. The land subject to this right of first refusal is
described as follows:
From the northeast corner of the Development Site then due south to the southeast
corner of the Development Site then due east to the property line of Parcel No. 765-
16578-001, then due north to the northeast corner of Parcel No. 765-16578-001,
then due west to the point of beginning.
Page 1 of 6
This right of first refusal must be exercised within thirty days of the City receiving an offer of
purchase. The City shall immediately notify AR -Canna LLC of any offer received for this
property. If AR -Canna LLC does not match the offer received by the City or exercise this right
within thirty days of receiving notice of the offer, this right of first refusal shall terminate. If AR -
Canna LLC exercises its right to purchase the property, it shall obtain a survey at its own cost prior
to closing.
2. Purchase
Subject to the terms and conditions, mutual promises and covenants of this Agreement, AR -Canna
LLC agrees to buy the Development Site for SEVENTY-FIVE THOUSAND DOLLARS
($75,000.00) to be paid to the City of Fayetteville on or before the Closing Date as follows:
A. Earnest money deposit: An earnest money deposit in the amount of TWO
THOUSAND FIVE -HUNDRED DOLLARS ($2,500.00) shall be paid by AR -Canna LLC
to the City of Fayetteville at the time this Agreement, signed by AR -Canna LLC, is
submitted to the City for approval. If the purchase and sale is consummated, this earnest
money deposit shall be applied to the purchase price at closing. If the City or AR -Canna
LLC exercises its option to terminate the Agreement pursuant to paragraphs 8, 9 or 10, this
earnest money deposit shall be refunded in full. If the transaction is not consummated for
any other reason, the earnest money deposit shall be refunded less the City's actual incurred
costs, if any, of obtaining the owner's title policy and title commitment.
B. Balance: The remaining balance of the purchase price in the amount of SEVENTY-
TWO THOUSAND FIVE HUNDRED DOLLARS ($72,500.00) shall be paid to the City
of Fayetteville on or before the Closing Date.
Closing Date and Place
Closing shall occur within 60 days following the date this Agreement has been executed by both
parties unless extended by mutual agreement of the parties in writing. The Closing shall occur at
113 West Mountain Street, Fayetteville, Arkansas in a room supplied by the City of Fayetteville.
4. Date of Possession
Possession of the Development Site shall be delivered to AR -Canna LLC on the Closing date free
of any tenancies or other third party possessory rights.
5. Title Insurance
The City of Fayetteville shall order a title commitment on the Development Site, as soon as
practicable following the full execution of this Agreement, through a title insurance company
selected by the City and acceptable to AR -Canna LLC. If the report on title, binder or commitment
discloses any defects in title (other than liens or encumbrances of a definite or ascertainable amount
Page 2 of 6
which may be paid at closing), the City shall have thirty (30) days from the date of AR -Canna
LLC's notice of such defects to make a good faith effort to cure such defects and to furnish a report
showing the defects cured or removed. If such defects are not cured within thirty (30) days, AR -
Canna LLC may terminate this agreement or may, at its election, take title subject to any such
defects. The cost of the title commitment and the cost of the owner's title policy shall be borne by
the City of Fayetteville. The cost of any lender's title policy and extended owner's title insurance
coverage shall be borne by AR -Canna LLC.
6. Deed and Other Documents
Within thirty days after execution of this contract by both parties, AR -Canna LLC shall obtain a
survey at its sole cost containing a legal description of the Development Site as well as the legal
description of the access easements described in Section 1 of this agreement as shown in the map
attached as Exhibit A.
On the Closing date, the City of Fayetteville shall convey marketable and insurable title to the
Development Site by general warranty deed, free and clear of all liens, restrictions, and
encumbrances except as provided in this Agreement, subject only to current real estate taxes, if
any (to be apportioned between the parties) and existing easements. AR -Canna LLC and the City
of Fayetteville shall equally share the cost a reasonable closing fee imposed by the closing agent
employed by parties provided however that AR -Canna LLC shall be responsible for any revenue
stamps resulting from this transaction and all recordings fees for the deed and other documents
that need to be filed.
7. Risk of Loss
Risk of loss as to the Development Site shall remain with the City of Fayetteville until the Closing
date.
8. AR -Canna LLC's Due Diligence
AR -Canna LLC may enter upon the Development Site to conduct any surveying, testing or
inspection it deems necessary to ensure the Development Site will be appropriate for the
construction and use for its facility. If AR -Canna -LLC discovers any problems that would
adversely impact its development and use of the Development Site for its facility, AR -Canna LLC
shall notify the City which is granted sixty (60) days to remediate any problem. The City may also
terminate this Agreement without penalty rather than remediating any problem or issue discovered
by AR -Canna LLC. Likewise, if the City does not remediate the problem, AR -Canna LLC may
terminate this Agreement without penalty, being entitled to a return of its earnest money, or
proceed under this Agreement to accept the property without resolution of the problem.
9. Large Scale Development Approval
AR -Canna LLC shall, at its sole cost and expense, prepare a Large Scale Development plat of the
Development Site and obtain any and all approvals necessary for AR -Canna LLC 's intended use
of the Development Site for its facility. The City shall reasonably cooperate with AR -Canna LLC
Page 3 of 6
in AR -Canna LLC's request for development approval of its facility. AR -Canna LLC must present
its development proposal through the normal City process and follow the Unified Development
Code requirements. AR -Canna LLC may defer Closing hereunder during such time as its
Development plat and approvals are pending review by the City, and if such are not approved, AR -
Canna LLC may terminate this Agreement without penalty, being entitled to a return of its earnest
money, or proceed under this Agreement to accept the property without development plans
approved by the City.
AR -Canna, LLC agrees to construct a driveway to the City's specifications from the cul-de-sac at
the end of South Industrial Drive along the western property line to a stub -out at the southwest
corner of the Development Site. Construction of the driveway (including approval by the City)
shall be completed prior to the issuance of a final certificate of occupancy. Any further driveway
extension shall be the responsibility of the City or the future developer of the remaining property
to the south.
Any future purchaser of property owned by the City to the south or east of the Development Parcel
shall have the right to construct a driveway for access to their property through the access easement
along the western property line of the Development Parcel. If the driveway has already been
constructed at the time AR -Canna LLC is ready to proceed with its development, AR -Canna shall
be responsible for any costs associated with constructing a curb cut to the City's specifications for
access from the driveway to the interior of the Development Site or for additional improvements
to the driveway. AR -Canna shall agree not to block or otherwise prevent access to the remaining
property by the City or any future owner of property currently owned by the City.
10. Cultivation Facility License Approval
AR -Canna LLC may defer Closing hereunder during such time as cultivation facility license
application is pending review by the State of Arkansas, and if such is -not approved by December
31, 2017, AR -Canna LLC or the City may terminate this Agreement without penalty. If terminated
because of the failure to obtain such a license, AR -Canna LLC shall be entitled to a return of its
earnest money.
11. Compensation to City of Fayetteville if Development Site is Sold Within 10 Years
AR -Canna LLC is aware that the Development Site is being sold by the City at a discount of
approximately $5,000.00 per acre below its normal selling price. If any portion of the land
conveyed by this contract is sold by AR -Canna LLC within the first five years of the date of
closing, an independent appraisal of the land's value shall be performed to segregate the actual
sales price between that allocable to the raw land as acquired by AR -Canna LLC, and that allocable
to the improvements subsequently added by AR -Canna LLC. AR -Canna LLC shall pay 75% of
the increase in appraised value of the raw land (with prorated sales cost deducted) to the City of
Fayetteville. AR -Canna LLC shall pay the City of Fayetteville 40% of the increase in appraised
value of the land (with prorated sales costs deducted) for any sales after 5 years until 10 years from
the closing date.
Page 4 of 6
12. Notices
Notices required by this Agreement shall be in writing and shall be delivered to:
AR -Canna LLC
ATTN: Brian Faught
7B Tara Mount Drive
Jacksonville, AR 72706
City of Fayetteville
ATTN: Mayor's Office
113 W. Mountain Street
Fayetteville, AR 7270172701-6083
13. - Authority
Each of the undersigned individuals represent and warrant that they are authorized to enter into
this Agreement on behalf of their respective entities and that execution hereof will bind the entities
to this Agreement.
14. Counterparts
This Agreement may be executed in two or more counterparts, each. of which shall be deemed an
original, but all of which taken together shall constitute one and the same agreement. -
15. Facsimile
For purposes of executing this Agreement, a facsimile signature shall be as effective an as actual
signature.
16. Applicable Law
This Agreement shall be construed and enforced in accordance with the laws and public policies
of the State of Arkansas.
17. Survival
The representations, warranties, and agreements of the parties contained herein shall survive the
closing date.
18. No Waivers
The waiver by either party hereto of any condition or the breach of any term, covenant or
conditions herein contained shall not be- deemed to be a waiver of any other condition or of any
subsequent breach of the same or of any other term, covenant or condition herein contained.
Page 5 of 6
19. Time of Essence
Time is of the essence in this Agreement.
20. Invalidity
If for any reason any term or provision of this Agreement shall be declared void and unenforceable
by any court of law or equity, it shall only affect such particular term or provision of this
Agreement and the balance of this Agreement shall remain in full force and effect and shall be
binding upon the parties hereto.
21. Complete Agreement
All understandings and agreements heretofore existing between the parties are merged into this
Agreement that alone fully and completely expresses their agreement. This Agreement may be
changed only in writing signed by both of the parties hereto and shall apply to and bind the
successors and assigns of each of the parties hereto and shall not merge with the deed delivered to
AR -Canna LLC at closing.
Date: ,5
AR -CANNA LLC
13
BRIAN FAUGHT,resident
and Chief Executive Officer
WITNESS:
RM
Date: 5- Iu -Iq
CITY OF,fj A V F T'f F- VILLE,
ATTEST:
By: .cz
Sondra E. Smith, City Clerk
Page 6 of 6
To: Fayetteville, AR City Council 4-4-17
From: Brian Faught, Executive VP, Adcomm
RE: Fayetteville Industrial Park Parcel 765 16578 001, 5 acres
Ladies and Gentlemen,
Adcomm and Brian Faught are planning on applying for a
"Medical Marijuana Cultivation License" with the state of
Arkansas, and upon receiving said license, plans to construct its
facility in the Fayetteville Industrial Park. As you may know,
"Medical Marijuana" was approved by the people of Arkansas in
the most recent election, and our new company, AR -Canna, is
committed to launching this new product in a safe and legal
manner in NWA. Please note the attached land plot (5 acres) as
the desired piece of property for this endeavor. AR -Canna's plans
include:
- Construction of a 30,000 sq ft cultivation and processing
plant, using local construction labor.
- Construction of a 5000 sq ft office complex, also using local
construction labor.
- Hiring 35-40 employees to run the facility.
- Starting wage of $15.00 per hour.
- 3-5 Managerial Positions with pay in the $50,000 - $75,000
pay range.
- 2 Senior Managerial Positions in the $75,000 - $125,000 pay
range.
- AR -Canna is using a Fayetteville architecture firm for the
plans and construction drawings of both facilities.
- AR -Canna will also hire a local contractor to oversee all
facets of the buildout.
- The plan is to build these two facilities now, and with the 5
acres, have room to build a second and third cultivation
facility as the industry matures.
Adcomm and Brian Faught are prepared to offer $75,000 for the
attached 5 acre plot, with a $2500.00 earnest money deposit,
contingent upon AR -Canna being awarded the cultivation and
processing license from the state of Arkansas. If AR -Canna is not
awarded a license, the earnest money will be returned.
We truly believe that AR -Canna will be a welcome and productive
member to the Fayetteville business community, and would like
our offer to be considered by the city council in the upcoming
April meeting.
Thanking you in advance for your time and consideration,
Sincerely,
Brian Faught, Executive VP Adcomm
501-993-0476
tFayetteville
46 Chamber of • -
YYtu. "ice-nrt 'E.`siwr rI 4-- n«71
A C
ALCCREDIYED
To: Mayor Lioneld Jordan
City of Fayetteville
CC: Don Marr, Chief of Staff
From: Steve Clark, CEO & President
Date: April 17, 2017
Subject: Recommendation to approve the sale of city -owned land, Parcel # 765-16578-001
to AR- Canna, LLC
AR -Canna, LLC is a new business set up by Brian Faught of Little Rock, Arkansas. The
company is in the process of applying for a "Medical Marijuana Cultivation License" and the
purchase of this piece of land helps in the said application. "Medical Marijuana" was approved
by the people of Arkansas in the most recent election (2016) and AR -Canna is committed to
launching this new product in a safe and legal manner in northwest Arkansas.
AR -Canna, LLC had looked at a few sites within the Fayetteville Commerce District with the
assistance of the Fayetteville Chamber. After holding discussions and communications with the
Chamber and the City, AR -Canna, LLC is now ready to offer to buy 5 acres of land owned by
the city in the Fayetteville Commerce District. The 5 acres is a portion of the 24 acres, Parcel #
765-16578-000. Attached is the letter of offer from AR -Canna, LLC and a map of the property.
AR -Canna plans to construct a 30,000 SF cultivation and processing plant using local
construction labor. There will also be a 5,000 SF office complex. When fully operational, AR -
Canna is expected to hire 35-40 employees with starting wage of $15 per hour for operational
workers. Management positions fall within the range of $50,000 to $125,000 and the company
plans to hire 5-7 managers. AR -Canna has retained a Fayetteville architecture firm to design the
property and a local construction company is expected to be retained to help with the
construction.
'VV - N4otlilis,Ill, `ate..,', 00, PO Cho;<421:7, Fayc'tCttviike. 72702
Tel: (x'.79) 52].-1.:10; Fa ;<: (47 1 521-1-191; vv wv ,v.faye tteviI ar.corn
AR -Canna, LLC/Page 2
We recommend that the City leadership supports this project by approving the sale of the land to
AR -Canna, LLC.
This project:
1) Meets the City's and State's goal of creating new jobs for Fayetteville and so the state of
Arkansas
2) Contributes a minimum of annual payroll of $1.2 million when fully operational
3) Meets the Fayetteville First's target sectors—Entrepreneurship
CERTIFICATE OF SIGN POSTING
1, Andrew Harrison,
attest that the above sign was posted on April 11, 2017 at the corner of Industrial &
Pump Station Rd. and a second sign was posted on the subject parcel east of 2435
Industrial Drive on April 11, 2017.
(signature of person completing the sign posting)
City File No./Name: ADM 17-5787
CERTIFICATE OF MAILING
I hereby certify that a true and correct copy of the attached written notice was placed in
the U.S. mail, first-class, postage prepaid this 11th day of April, 2017, and
addressed as follows:
Name: Matrix Investments, LLC
Street: 1197 Happy Hollow Rd.
City, State, Zip: Fayetteville, AR 72701
Name: Marshalltown Co.
Street: 2200. S. Industrial DR
City, State, Zip: Fayetteville AR 72701
Name: HFNWA, Inc.
Street: 1601 E. Pump Station Rd.
City, State, Zip: Fayetteville, AR 72701
Name: Brigh On vestments, LLC
Street: 2501 S. Armstrong Ave.
City, State, Zip: Fayetteville, AR 72701
Andrew Harrison
(name of person complet "ng the mailing)
Andrew Harrison
(signature of per o completing the mailing)
City File No. /Name: _17-5787
Ta'vvctre-;1i1e
April 11, 2017
Name
Address
City, State, Zip
Re: Public Notice — Sale of municipally owned real property
Dear Property Owner:
THE CITY OF FAYETTEVILLE, ARKANSAS
CITY PLANNING DIVISION
125 West Mountain
Fayetteville, AR 72701
Phone (474) 444.3443
Please be aware that the Fayetteville City Council will consider a Resolution and Contract to sell to Adcomm,
Inc. about 5.0 acres (a portion of parcel 765-16578-001) it owns on S. Industrial Dr. for $75,000. The property
currently contains no structures. It is zoned 1-2, General Industrial. Should the sale be approved, planned
improvements include the development of a medical marijuana cultivation facility.
This possible sale will be considered by the City Council during its 5:30 p.m. meeting held on May 2, 2017 in
Room 219 of City Hall, located 113 W. Mountain Street.
If you wish to learn more about this proposed sale, please contact Andrew Garner, Planning Director at 479-
575-8262. You may also attend the May 2, 2017 City Council meeting and ask questions or make comments
when this resolution is presented for City Council consideration.
Sincerely,
Andrew Garner
Planning Director
City of Fayetteville, Arkansas
Telecommunications Device for the Deaf TDD(479)521-1316 113 burst Mountain - Fayetteville, AR 727:31
NORTHWEST ARKANSAS
Democrat IF oaze#je
P.Q. BOX 1601, FAYEI TEVI _E, AR, +72702 - 474-442-1700 - FAX: 479-695-111& - WWW 0.'WADG.COM
AFFIDAVIT OF PUBLICATION
I Karen Caler, do solemnly swear that I am the Legal Clerk of the
Northwest Arkansas Democrat -Gazette, printed and published in
Washington County and Benton County, Arkansas, and of bona fide
circulation, that from my own personal knowledge and reference
to the files of said publication, the advertisement of:
CITY OF FAYETTEVILLE
City council meeting
Was inserted in the Regular Edition on:
April 12, 2017
Publication Charges: $ 54.60
Subscribed and sworn to before me
This 13 day of CLpt , 2017.
Onv' ce�"
Notary Public
My Commission Expires:
C CATt'I'('+'ALES
c'
Notary i r c.::
My Corrinlssion E;;;,;res pail 20, 7.024 i•
**NOTE**
Please do not pay from Affidavit.
Invoice will be sent.
NOTICE OF PUBLIC HEARING
A meeting of the City of Fayelteville City
Council will be held on May 2, 2017 at 5:30
p.m., in room 219, Fayetteville
Administration Building at 113 W.
Mountain Street, Fayetteville, Arkansas,
72701. The following item is required to be
published in the local newspaper pursuant
to the Code of Ordinances of the City of
Fayetteville and will be heard at the May 2,
2017 Fayetteville City Council meeting
17-5787: SALE OF MUNICIPALLY
OWNED REAL PROPERTY, 642):
Submitted by CITY STAFF for property
located EAST OF 2435 INDUSTRIAL
DRIVE. The Fayetteville City Council is
considering the sale of about 5 acres it owns
CAST OF 2435 INDUSTRIAL DRIVE to
Brian Faught, Executive Vice President of
Adcomm, for $75,000.00. The proposed use
of the property is for a medical marijuana
cultivation facility. This possible sale will
be considered by the City Council during its
May 2, 2017 meeting at 113 W. Mountain
Street, Room 219.
74096442 April 12, 2017
L -I
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ADM 17-5787 CITY OWNED PROPERTY SALE
Current Land Use NORTH
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A Department
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.+'ST Streams FEMA Flood Hazard Data
Street
Streets Planned
MSP Class 100 -Year Floodplam
MINOR ARTERIAL Feet
Flavctway
-- MINOR ARTERIAL
•. • Shared Use Paved Trail 0 180 360 720 1,080 1,440
A 1 N A Trail (Proposed)
NPlanning Area 1 inch = 500 feet
r Fayetteville City Limits
City of Fayetteville Staff Review Form
2027-0379
Legistar File ID
NA
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Devin Howland 7/7/2017 ECONOMIC DEVELOPMENT (050)
Submitted By Submitted Date Division / Department
Action Recommendation:
Mayor's Signature needed on AR Canna LLC's Large Scale Development Application and Lot Split Application.
Account Number
Project Number
Budgeted Item? No
Budget Impact:
Current Budget
Funds Obligated
Current Balance
Does Item have a cost? No Item Cost
Budget Adjustment Attached? NA Budget Adjustment
Fund
Project Title
$
Remaining Budget $
vza1ao7io
Previous Ordinance or Resolution # 11lq
Original Contract Number:
Comments:
Approval Date: r7—Ja 117
QCITY OF
FAYETTEVILLE
ARKANSAS
TO: Mayor Lioneld Jordan
THRU: Don Marr. Chief of Staff
FROM: Devin Howland, Director of Economic Vitality
DATE: July 6, 2017
STAFF MEMO
SUBJECT: AR Canna Lot Split and Large Scale Development Application
RECOMMENDATION:
Mayor Lioneld Jordan's signature is needed on the Lot Split Application and the Large -Scale
Development Application for AR -Canna LLC. Since the property in question is owned by the
City of Fayetteville and the sale of said property is contingent upon AR -Canna LLC's receipt of a
Marijuana Cultivation License, the City of Fayetteville needs to sign the Lot Split Application and
the Large -Scale Development Application as the "Property Owner' for planning to proceed.
BACKGROUND:
The City Council of the City of Fayetteville voted in favor of selling 5 acres of land in the
Fayetteville Commerce District for $75,000 to Brian Faught, owner of AR -Canna LLC on May
16, 2017.
BUDGET/STAFF IMPACT:
We believe the budget impact will be neutral.
Attachments:
Exhibit A: Lot Split Cover Letter
Exhibit B: Lot Split Application (signature required)
Exhibit C: Lot Split Survey
Exhibit D: Large Scale Development Cover Letter
Exhibit E: Large Scale Development Application (signature required)
Exhibit F: Large Scale Development Packet (Lot Split, Site/ Utility Plan, Grading Plan, Tree
Protection/ Landscape Plan, Tree Preservation Details)
Exhibit G: Building Elevation
Exhibit H: Property Owner Notification Letter
Exhibit I: Tech Plat Fire Code Review Sheet
Exhibit J: Tree Mitigation Form
Exhibit K: Neighbor Notification List
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
James Layout Services, LLC
c/o Leonard Gabbard
P.O. Box 611
Farmington, AR _ 72730
City of Fayetteville Planning Division
113 W. Mountain Street
Fayetteville, AR 72701
RE: Tract Split for the City of Fayetteville
Submitted herewith is all supporting documentation to split LoL14A into 2 additional parcels.
The reason for the split it to allow placement of a new medical marijuana cultivation facility (AR -CANNA)
on the 5.08 acre tract.
Sincerely,
Leonard
CITY OF FAYETTEVIUE, ARKANSAS
LOT SPLIT
Tabled Tech Plat Resubmind FEE: 12m oolresubmittal
Application Submitted.*
Accepted as Complete: S -T -R:
cl Number. PPA:
e Hearing Date: Zone:
Please fill out this form completely, supplying all necessary information and documentation to support your request.
Your application wiR not beprocessed until this information is furnished
Application:
Indicate one contact person for this request: O Applicant 6) Representative ------
Applicant
---1Applicant (person making request): Representative (engineer, su xaw4 akar, eta):
Name: City of Fayetteville Name-. James Layout Services, LLC
E-mail: mayor®fayetteville-ar.gov E-mail: leonard®jlsnwa cam
Address: 113 W. Mountain Street Address: P.O. Box 611
Farmington, AR 72730
Phone: (479) 575-8330 Phone: (479) 409-9259
Pax: (479) 575-8257
Fax: N/A (Use email)
Site Address/ Location: Property unaddressed but is located adjacent to
2435_S_ Industrial Drive in Fayettevit]e
Previous division of parent tract since 1985 (dates and brief description):
Original Split Creating this Parcel was done on 8/12/2014
That Split is Filed at Record # 2014-00020453 in the Records of the Circuit
Clerk and Ex -Officio Recorder for Washington County, Arkansas.
December 2014
Zoning
District
Assessor's Parcel Numbers
forthe Properties
She of Parent
Tract(ataes)
Sin of Resulting Tracts (acres)
Lotl4A1 Lat14A2
TractA
I-2
765-16578-001
24.00
5.08
18.92
Tract a
Tract C
Tract D
Previous division of parent tract since 1985 (dates and brief description):
Original Split Creating this Parcel was done on 8/12/2014
That Split is Filed at Record # 2014-00020453 in the Records of the Circuit
Clerk and Ex -Officio Recorder for Washington County, Arkansas.
December 2014
FINANCIAL INTERESTS
The following entities and / or people have'financial interest in this project:
AR -Canna (Brian Fau ht)
7B Tara Mount Drive Jacksonville, AR 72705
APPLICANT /REPRESENTATIVE: I certify under penalty of perjtuy that the foregoing statements and
answers herein made all data, information, and evidence herewith submitted are in all respects, to the best of
my knowledge and belief, true and correct. I understand that submittal of incorrect of false information is
grounds for invalidation of application completeness, determination, or approvals. I understand that the City
might not approve what I am applying for, or might set conditions of approval.
NAME
Date: 7/05/2017
PROPERTY OWNER(S) /AUTHORIZED AGENT: Uwe certify under penalty of perjury that I am/we are
the owners) of the property that is the subject of this application and that Uwe have read this application and
consent to its filing. (If signed by the authorized agent, a letter from each property owner must be provided
indicating that the gent is authori�ad to act op h Pols behalf.) 113 W. Mountain St . Fayetteville
3 V oL Fav�ttdvil e Y
Name(print t t Address: Arkansas 72701
a —
ttt rjrr.
Date: 7/ /2017 RKI.!Rfgso,Phone: (479) 575-8330
Name
Date' /r / .L ' /, r O,aY • G �� Phone:
un t1i
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Application Checklist
Attach the following items to this application: '
(1) Payment in full of applicable fees for processing the application ($200.00 lot split fee). Any resubmittal required due to project
being tabled at Tech Plat will require a $200.00 fee per resubmittal.
(2) Correspondence in the form of a wdten letter to Planning Staff describing the scope, nature and intent of the proposal.
(3) One (1) hard copy and one (1) CD containing a digital copy in PDF format of the signed application, correspondence letter
and the survey of the pmperty shaving all required information for a Lot Split listed on the Plat Requirements checklist in Section
166.02 of the Fayetteville United Development Code. These requirements are fisted on the Plat Requirements page in this
application. Claady label an original and proposed property lines.
(4) If this lot split results in a tract(s) of less than 1.5 acres, approval from the Arkansas Department of Health is required allowing for
an individual sewage disposal system prior to the property line adjustment application.
(5) If located within the Citys Planning Area and this lot split results in a tract(s) of less than 1.0 acre, approval from the Washington
County Planning Department is required prior to the Gly accepting lids application.
Note:
In order for the Washington County Assessor's Office to officially recognize this lot split on the deed for the property,
a correction Deed or Quitclaim Deed must be Ned along with the Lot Split survey. Please submit this deed with
the final, revised copy of the Lot Split survey plat for City of Fayetteville Approval for Recording".
December 20%
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EDA
Earthplan Design Alternatives, PA
Civil Engineering / Landscape Architecture
July 5, 2017
City of Fayetteville
Planning Department
113 West Mountain Street
Fayetteville, AR 72701
Dear Mr. Garner:
Please accept this Large Scale Development submittal for AR Canna Marijuana Cultivation +
Manufacturing Center in South Fayetteville. The site is located on the eastern side of S. Industrial Drive's
cul-de-sac, to the east of the Fayetteville Water and Sewer Office Building. This proposed development
will occupy approximately 5.08 acres of the existing parcel 765-16578-001's current twenty-four acres.
The property owner is the City of Fayetteville; AR Canna has entered into an agreement with the City of
Fayetteville to allow the sale of the 5.08 acres to AR Canna, contingent upon AR Canna getting LSD
approval through the City of Fayetteville and being chosen by the Arkansas Medical Marijuana
Commission for the cultivation and manufacturing of medical marijuana.
The scope of this project is to develop twelve greenhouses that are each around 253 feet in length and
around 32 feet in width. All of the greenhouses are planned to initially be constructed but only six of the
green houses will initially be placed into production. The remaining six will be brought online as market
forces dictate. There will be a separate 19,853 sf building and associated parking for manufacturing of
medical marijuana and for the operation's office space. Separating the office/manufacturing building
and the greenhouses will is a long building used for sending and receiving product and agricultural
materials needed for the cultivation of the plants.
This facility will only be used to grow and produce medical marijuana. Parking is sized for the intended
number of employees (36-40), and six for guest parking. Guest for this facility will mainly be brokers for
dispensaries. There will be no retail sales at this location, only cultivation will be performed.
If you have any questions, please don't hesitate to call 479-756-1266.
Sincerely,
/Jameeurtz, PE
Principal / Civil Engineer
134 W. Emma Ave. Springdale. AR 72764 Phone: 479-756-1266 Fax: 479-755-3570
www.eda-pa.com
CITY OF FAYETTEVILLE, ARKANSAS
LARGE SCALE DEVELOPMENT
LSD FEE.
5200.00 - $800.01
Sign FEE:
$5.00persign
Tech Plat Resubmittal FEE:
S2001resubminal
Tree Preservation FEE.
$120.00
Application Submitted:
Accepted as Complete: S -T -R:
wr Number: PP$:
''c Hearing Date: Zone:
Please fill out this form completely, supplying all necessary information and documentation to support your request. Your
application will not be placed on the Planning Commission agenda until this information is furnished.
APPLICATION:
Indicate one contact person for this request:
Applicant (person making request):
Name: AR -CANNA (Brian Faught)
Address: 7B Tara Mount Dr.
Jacksonville, AR 72705
Applicant X Representative
Representative (engineer, surveyor, realtor, etc.):
Name:_ James Geurtz PF
n -
Address: 134 W Fmma Avp -
Springdale. AR 72764
Phone: 479-751-9591 Phone: 479-756-1266
Fax:
Fax: 47q-755-3570
Site Address / Location: the nnnhwastem approximate r 08 arm- rnrner of earrnl 765-16578-001 ar iarpnt fn
2435 S. Industrial Dr. in Fayetteville
Current Zoning District: 1-2
Date of Preliminary Plat: n/a
Assessor's Parcel Number(s) for property: 765-16578-001
Total Acreage: approx. 5.08 ac Number of Lots: 1 Number of Dwelling Units: 0
FINANCIAL INTERESTS
The following entities and / or people have financial interest in this project:
AR - Canna (Brian Faught)
May 2016
APPLICANT/REPRESENTATIVE: I certify under penalty of perjury that the foregoing statements and answers herein made
all data, information, and evidence herewith submitted are in all respects, to the best of my knowledge and belief, true and
correct. I understand that submittal of incorrect of false information is grounds for invalidation of application completeness,
determination, or approvals. I understand that the City might not approve what I am applying for, or might set conditions of
approval.
Name
Date: 6/30/2017
PROPERTYOWNER(S) /AUTHORIZED AGENT. Vwe certify under penalty of perjury that I am/we are the owner(s) of the propert;
that is the subject of this application and that Vwe have read this application and consent to its filing. (If signed by the authorized agent
letter from each property owner m1 t� be
provided indicating that the agent is
authorized to act on her/his behalf.) n ��
Name(printed)• U1 Address: 11.1 W I II�%I /A�l w�yt •Y-Vl� r72_90I
Name
Phone:
Address:
LSD Checklist:
Attach the following items to this
LSD
application:
Non -Residential Non-residential (5000 square feet or less)
Non-residential (More than 5000 square feet)
Residential Residential (10 residential units or less)
Residential (25 residential units or less)
Residential (More than 25 residential units)
Technical Plat Resubmittal (tabled items only)
Tree Preservation
Public Notffication'Slgn Fee (per sign)
$400.00
$800.00
$200.00
$400.00
$800.00
$200.00 per
$120.00
(2) Correspondence in the form of a written letter to Planning Staff describing the scope, nature and intent of the proposal.
Variances from requirements of the Unified Development Code will be reviewed and processed in accordance with the
procedures set forth therein. Please Indicate in the letter to staff If any variances are sought and if so, justification for the
request. Most variances require a Planning Commission decision.
(3) A copy of the county parcel map from the Washington County Assessor's office or from the Washington County
website (www.co.washington,ar.usl. The subject property and all adjacent parcels should be identified on this parcel
map. The owner's name, official mailing address, and Bre parcel number for every adjacent property shall be shown
on this map.
(4 A coptgL&ewA#eRdedmen*cmtm-PWFs-a—n3lZWMation Advisory Board regarding park land dedication
ellmemPnLa (ram ' I rojects only).
May 2016
¢NERAL NOMS
Ep
Large Scale Development
for
.( --�-�_Fr----
AR- Canna Cultivation +,g.,
Manufacturing Facility
VI[MiIY NCD
'Fayetteville, AR
s . EDA Project No. 2065
July 5,-,2017
INDEX SHEET
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Preliminory Troct Split Survey S-1
Site/Utility Pion S-2
Grading Pion GP—I
Tree ProteclionAandscape Plan TP—I
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EDA
Earthplan Design Alternatives, PA
Civil Engineering i Landscape Architecture
Project Description:
You are being contacted because you own a parcel of property located adjacent to parcel 765-16578-
001 within the city limits of the City of Fayetteville. The applicant, AR Canna, has proposed a Large Scale
Development on the northwestern approximate 5.08 acre corner of this parcel adjacent to 2435 S.
Industrial Dr. in Fayetteville (the Fayetteville Water and Sewer office building). Please see the attached
map that further shows the subject site's location.
EDA's request is to allow greenhouses for the cultivation of medical Marijuana; there will also be a
separate building for the business's offices and manufacturing of medical marijuana. Office space and
associated parking are also proposed. The existing pond in the property s northwestern corner along
with canopy around the pond, adjacent to S. Industrial Drive, and to the north between the property
and the trail to the north, will be preserved, giving the road and trail traffic a buffer form the subject
site.
Public Hearings:
Planning Commission; 5:30 PM; August 14, 2017
Building Room 219) Fayetteville, AR 72701
Property Owner: City of Fayetteville
Developer: AR Canna
113 West Mountain Street (City Administration
Phone #: 479-575-8330
Phone #: 479-751-9591
Review Location:
The project information is available for public review at the City of Fayetteville Planning Division, 125
West Mountain Street, Fayetteville, AR 72701 Monday -Friday 8AM-SPM; 479.575.8267.
134 W. Emma Ave. Springdale, AR 72764 Phone: 479-756-1266 Fax: 479-755-3570
www.eda-pa.com
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TECH PLAT FIRE CODE REVIEW
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City of FAYETTEVILLE,
ARKANSAS (Updowd 1212013).AAN[A,
/�L1 �Tree Mitigation Form
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Location Address: i()� . Engineer: `�OONC/��1,
It is required that this form be submitted concurrently with the Tree Preservation Plan if
mitigation of any kind is sought.
Canopy measurements:
% Tree Canopy: 87. f 126
Required to be Preserved 15P.
`Total Area of Site:
Acres: 5 b8 ' .
Square Feet:gy, $
'Lase MastwStmet Plan ROW an Pork! Dedication
Total Area of Existing Thee Canopy
Acres:_3 • i 1
Square Feet:__IU z22
% of Total Site Area: -71"
Amount of Preservation Requirement Requested for Mitigation: -
Existing Tree Canopy Preserved:
Square Feet:_ _
% of Total Site:! 3.4 7.
Acres:
Square Feet:
% of Total Site Area: VT Ve
Type of Mitigation Pursued:
6, On Site Mitigation )I Off Site Preservation ❑ Off Site Forestation ❑ Tree Fund
List Mitigation Species, Caliper, and Quantity of trees to be planted in the space below. Refer to
table and on back for figuring quantity and caliper sizes.
Species Caliper Qty.
TP
May 2016
neighbor notification list for AR Canna Cultivation LSD (EDA job # 2065)
created by SDG on 7.3.2017
I hereby certify that a true and correct copy of the attached written notice was placed in
the U.S. mail, first-class, postage prepaid this _ day of . 2017, and
addressed as follows:
Map It
Parcel #
Owner name
1
765-19958-000
BRIGHT INVESTMENTS LLC
2501 S ARMSTRONG AVE
FAYETTEVILLE, AR 72701
2a
765-16578-000
CITY OF FAYETTEVILLE
2b
765-15312-001
113 W MOUNTAIN ST
2c
765-16577-000
FAYETTEVILLE, AR 72701-6083
3
765-19960-000
HFNWA LLC
1601 E PUMP STATION RD
FAYETTEVILLE, AR 72701
4
765-15278-000
MARSHALLTOWN COMPANY C/O MR
JACK MURDERS, VP
2200 S INDUSTRIAL DR
FAYETTEVILLE, AR 72701
5
765-16573-000
MATRIX INVESTMENT LLC
C/O WILLIAM JOHNSON
FAYETTEVILLE AR 72701
(name of person completing the mailing)
(signature of person completing the mailing)