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113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 51-22
File Number: 2022-0089
EXPRESS THE INTENT TO SELL APPROXIMATELY 30.06 ACRES COMMERCE
DISTRICT:
A RESOLUTION TO EXPRESS THE INTENT OF THE CITY COUNCIL TO SELL
APPROXIMATELY 30.06 ACRES OF CITY PROPERTY LOCATED IN THE COMMERCE
DISTRICT
WHEREAS, the City of Fayetteville owns Parcel # 765-15312-001, which contains approximately
17.46 acres, and Parcel # 765-16578-001, which contains approximately 19 acres, in the
Commerce District; and
WHEREAS, the City has received an offer from B-Unlimited to purchase the 17.46 acre parcel and
a request for an option to purchase approximately 12.6 acres of the 19 acre parcel within 12 months
of closing on the 17.46 acres; and
WHEREAS, staff has reviewed the proposal and recommends that the City Council authorize the
sale of this property as it is not needed for municipal purposes.
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 expresses its intent to sell
approximately 17.46 acres of property located in the Commerce District, Parcel 765-15312-001, as
shown in the map attached to this Resolution as Exhibit A, and further authorizes the Mayor to offer
this property for sale.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby expresses its intent to sell
Page 1 Printed an 2116/22
Resolution: 51-22
File Number 2022-0089
approximately 12.6 acres of the 19 acre Parcel # 765-16578-001, as shown in the map attached to
this Resolution as Exhibit A, and further authorizes the Mayor to offer this property for sale.
PASSED and APPROVED on 2/15/2022
Attest: ti��� i i r r r ►► ►/,
•�`1 F K-4ZA 4F
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FAYETTEIVILLE x,
Kara Paxton, City C erk Treasurer;
Page 2 Printed an 2116122
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479)575-8323
Text File
File Number: 2022-0089
Agenda Date: 2/15/2022 Version: 1 Status: Passed
In Control: City Council Meetinq File Type: Resolution
Agenda Number: C.7
EXPRESS THE INTENT TO SELL APPROXIMATELY 30.06 ACRES COMMERCE DISTRICT:
A RESOLUTION TO EXPRESS THE INTENT OF THE CITY COUNCIL TO SELL
APPROXIMATELY 30.06 ACRES OF CITY PROPERTY LOCATED IN THE COMMERCE DISTRICT
WHEREAS, the City of Fayetteville owns Parcel # 765-15312-001, which contains approximately 17.46
acres, and Parcel # 765-16578-001, which contains approximately 19 acres, in the Commerce District; and
WHEREAS, the City has received an offer from B-Unlimited to purchase the 17.46 acre parcel and a
request for an option to purchase approximately 12.6 acres of the 19 acre parcel within 12 months of closing
on the 17.46 acres; and
WHEREAS, staff has reviewed the proposal and recommends that the City Council authorize the sale of this
property as it is not needed for municipal purposes.
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 expresses its intent to sell
approximately 17.46 acres of property located in the Commerce District, Parcel 765-15312-001, as shown in
the map attached to this Resolution as Exhibit A, and further authorizes the Mayor to offer this property for
sale.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby expresses its intent to sell
approximately 12.6 acres of the 19 acre Parcel # 765-16578-001, as shown in the map attached to this
Resolution as Exhibit A, and further authorizes the Mayor to offer this property for sale.
City of Fayetteville, Arkansas Page 1 Printed on 211612022
City of Fayetteville Staff Review Form
2022-0089
Legistar File ID
2/15/2022
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Devin Howland 1/26/2022 ECONOMIC DEVELOPMENT (050)
Submitted By Submitted Date Division / Department
Action Recommendation:
Staff is recommending approval of a resolution expressing the City Council's intent to sell 17.46 acres (Parcel # 765-
15312-001) of City -owned Commerce District land for $278,280 with an option to purchase approximately 12.6
acres of Parcel # 765-16578-001 for $18,000 an acre within twelve months of closing on Parcel # 765-15312-001.
Account Number
Project Number
Budgeted Item? No
Does item have a cost? No
Budget Adjustment Attached? No
Purchase Order Number:
Change Order Number:
Original Contract Number:
Comments:
Budget Impact:
Fund
Project Title
Current Budget $ -
Funds Obligated $ -
Current Balance
Item Cost $ -
Budget Adjustment $ -
Remaining Budget
Previous Ordinance or Resolution #
Approval Date:
V20210527
CITY OF
FAYETTEVILLE
ARKANSAS
MEETING OF FEBRUARY 15, 2022
TO: Mayor and City Council
THRU: Susan Norton, Chief of Staff
FROM: Devin Howland, Director of Economic Vitality
DATE: January 26, 2022
CITY COUNCIL MEMO
SUBJECT: A Resolution expressing the City Council of the City of Fayetteville's intent
to sell 30.06 acres of City owned land in the Commerce District
RECOMMENDATION:
Staff is recommending approval of a resolution expressing the City Council's intent to sell 17.46
acres (Parcel # 765-15312-001) of City -owned Commerce District land for $278,280 with an
option to purchase approximately 12.6 acres of Parcel # 765-16578-001 for $18,000 an acre
within twelve months of closing on Parcel # 765-15312-001.
BACKGROUND:
In the Winter of 2021, the Department of Economic Vitality began working with B-Unlimited to
explore a range of expansion options to meet the company's need for additional space.
Following an assessment of onsite expansion options and a City-wide site search for another
location, parcel # 765-15312-001 was identified and an offer letter to purchase the property was
received on January 13, 2022 from Cameron Clark, who is representing B-Unlimited.
BACKGROUND OF B-UNLIMITED:
A beloved local business, B-Unlimited was founded in 1994 as a screen -printing company right
here in Fayetteville. Acquired by Ben Clark in 2006, the company has experienced significant
growth over the past decade- launching a fully water -based print shop in 2013. Since this time
the company has grown from one Sorority client here in Fayetteville to serving 250 college
campuses across the nation today. In 2020, B-Unlimited merged JCG Apparel and expanded to
six retail locations throughout the SEC (South Eastern Conference).
From 2016-2019 B-Unlimited was named to the "Inc. 5000" list of the fastest growing private
companies in the United States, and their growth continues to this day. Currently, B-Unlimited
employs over 250 team members, with nearly 180 jobs located in the City of Fayetteville (30 of
which are full time artists, making them one of the largest private employers of full-time artists in
the City).
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
DISCUSSION:
Economic Vitality Benefits and Metrics:
The project is the relocation, expansion, and retention of B-Unlimited's national headquarters.
B-Unlimited has called the City of Fayetteville home since it was formed in 1994. As the
company continues to grow, this site provides them with the surety that as their needs continue
to expand- they have room to do so within the City.
• Employment: Retention of 180 jobs at an average of $20 per hour (annual payroll of
nearly $7.5M). Creation of 50 jobs within the next three years that would bring annual
payroll to a little more than $9.5M;
• Capital Investment: Phase 1 investment of the new HQ of $5.5M;
• Retaining the HQ of a significant employer within the creative economy who has
consistently been named one of the fastest growing companies in the United States.
Development Site Offer and Option Site:
The offer letter received by the City includes a purchase price for the 17.46-acre tract (Parcel #
765-15312-001) is $278,280 ($15,938 per usable acre/$18,000 per acre with the exclusion of
the pond which will not be developed).
The offer letter also includes an option to purchase up to an additional 12.6 acres of parcel
#765-16578-001 for $18,000 per acre within 12-months of closing on the development site,
under a separate agreement. Initial conversations between B-Unlimited and the Department of
Economic Vitality include utilization of the option site to recruit mutually beneficial businesses to
the property, such as the development of 10,000-15,000 sq. ft. manufacturing spaces that can
be utilized by other small businesses and entrepreneurs. These details will be discussed in a
separate agreement per the Chief of Staff's response letter.
Zoninq and Location:
The City -owned property is currently zoned 1-2 Industrial. The site is bordered by Black Hills
Energy Arkansas Inc. to the east, Hog Box to the south, a privately held parcel to the west, and
City -owned Commerce District land to the north. The site includes a roughly 2-acre pond area,
which the company will retain as an amenity on the proposed campus should Mayor Jordan be
authorized by the Fayetteville City Council to sign a Land Sale Agreement with the company.
Access and Future Industrial Drive Construction:
Discussed further in the Chief of Staff's response to letter of intent (Attachment 3 of this packet)
the site does not have access and will not until the Industrial Drive Extension is complete.
Initial Land Sale Agreement Conditions:
1. Buyer will obtain a survey of the property at their sole expense;
2. Development Site shall be located immediately to the south of the proposed fifty -foot
Right -of -Way as outlined in Exhibit B of the Chief of Staff's response;
3. Buyer must agree to dedicate right-of-way per City of Fayetteville Unified Development
Code and Master Street Plan standards at the time of large-scale development;
4. Buyer shall pay compensation to the City of Fayetteville if the Development Site is sold
within ten years, given the discount of $2,000 per usable acre;
5. Other conditions will be included in the Land Sale Agreement;
6. All Land Sale Agreements are subject to final approval by the Fayetteville City Council.
Should this resolution be adopted by the Fayetteville City Council, City staff would begin the
land sale notification process per section 34.27 "Sale of Municipally Owned Real Property" of
the City's code. A separate Resolution authorizing Mayor Jordan to sign a Land Sale Agreement
will be brought forward at a later date for review and consideration by the Fayetteville City
Council.
BUDGET/STAFF IMPACT:
$278,280 in revenue to the City fund that owns parcel 765-15312-001 and $226,800 in revenue
to the City fund that owns parcel 765-16578-001.
Attachments:
Site Location Map
Offer Letter from Cameron Clark on Behalf of B-Unlimited
City Response Letter from Susan Norton, Chief of Staff with Exhibits
Letter of Support from the Fayetteville Chamber of Commerce
Urban Forestry Report on Option Site
Attachment A: Site Location Map for Parcel # 765-15312-001
4
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B- U N L I M I T E D
January 13, 2022
Mayor Lioneld Jordan
113 West Mountain St.
Fayetteville, AR 72701
Dear Mayor Jordan,
BUNLIMITED
2291 S SCHOOL AVE.
FAYETTEVILLE, AR
72701
As the B-Unlimited representative, I am pleased to submit this Letter of Intent to purchase a piece
of City owned property in the Fayetteville Commerce District for the expansion and retention of the
B-Unlimited, Inc. headquarters for office, manufacturing, and distribution.
The property under consideration is 30.06 acres of land in the Commerce District. Buyer to close
on the southern parcel (APN# 765-15312-001) totaling 17.46 acres by March 2022, at a purchase
price of $278,280. Upon closing, Buyer will have a 12-month option period to purchase the
northern 12.6 acres (part of APN# 765-16578-001) at a purchase price of $18,000 per acre. The
buyer entity will be an Arkansas Limited Liability Company to be named. A survey will be required
at the Buyer's expense. The average price is $18,000 per usable acre ($278,280 total).
Supporting data on the company, preliminary job creation estimates, and planned development has
been shared with the staff at the City of Fayetteville.
We look forward to executing a formal purchase agreement under the supervision of the City
Attorney, a 15-day cash close upon contract execution.
Special thanks to Ms. Chung Tan and Mr. Devin Howland from the City of Fayetteville.
Respectfully submitted this 13 day of January 2022.
Cameron Clark
Agent
Bennett Commercial Real Estate
cameron@bennettcre.com
479-387-4014
a 4 M V u
B-UNLIMITED B-UNLIMITED B-UNLIMITED BUNLIMITED BUNLIMITED
W W W. B- U N L I M I T E D. C O M
O
B- U N L I M I T E D
BUNLIMITED
2291 S SCHOOL AVE.
FAYETTEVILLE, AR
72701
Exhibit A
a 4 m v
B-UNLIMITED B-UNLIMITED B-UNLIMITED BUNLIMITED BUNLIMITED
W W W. B- U N L I M I T E D. C O M
OFFICE OF THE MAYOR
January 24, 2022
Cameron Clark
Bennett Commercial Real Estate
3608 Southern Hills Blvd (Suite 4)
Rogers, AR 72758
Dear Mr. Clark,
Thank you for your letter of intent on behalf of B-Unlimited expressing its interest in purchasing
approximately 17.46 acres of City -owned land in the Fayetteville Commerce District (Parcel #
765-15312-001) (the "Development Site") with the option to purchase an additional
approximately 12.6acres of City -owned land (Parcel # 765-16578-001) (the "Option Site") within
12 months of closing on the Development Site. The general location and size of the
Development Site and Option Site are shown on the map attached as Exhibit A.
Land Sale
This City -owned land is reserved for economic development opportunities and the purchase
price of $15,938 per acre ($18,000 per usable acre) represents a reduction for that purpose. As
such, the City will require the buyer complete a survey at its expense. We are interested in
proceeding by presenting a Resolution of Intent to the Fayetteville City Council on February 15,
2022. Section 34.27 of the Fayetteville City Code, Sale of Municipally Owned Real Property,
requires the City Council to first pass a Resolution of Intent before a land sale agreement can
be considered in order to satisfy the City's land sale notification requirement.
Access and Future Industrial Drive Construction
The site currently does not have access and will not until the Industrial Drive road extension
project is complete (Exhibit B). The City intends to obtain and dedicate 50 feet of public right-of-
way as shown in Exhibit A (Tract 03 to CITY OF FAYETTEVILLE, ARKANSAS). As such, the
Development Site's northern boundary will abut this new section of right-of-way. The City
anticipates that the Industrial Drive extension will be completed by Q2 2023; however, this is not
guaranteed. Until the Industrial Drive extension is completed, the City understands that you will
continue to access the Development Site through adjacent privately owned land.
Development Site, City Council Process, and Land Sale Agreement Conditions
Should the City Council pass a Resolution of Intent expressing their interest in selling the parcel,
a 15-day public notice period must be completed before a Resolution to authorize Mayor Jordan
City of Fayetteville 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov
OFFICE OF THE MAYOR
to sign a Land Sale Agreement can be considered by the Fayetteville City Council. The Land
Sale Agreement will reflect the following conditions:
1. The Development Site shall be located immediately to the south of the proposed fifty -
foot Right -of -Way as outlined in Exhibit B and B-Unlimited must agree to dedicate right
of way per City of Fayetteville Unified Development Code and Master Street Plan
standards at the time of large scale development;
2. B-Unlimited shall be required to obtain a survey of the Development Site within thirty
days of the execution of the Land Sale Agreement;
3. B-Unlimited shall pay compensation to the City of Fayetteville if the Development Site is
sold within ten years, given the discount of $2,000 per usable acre;
4. Other conditions will be included in the Land Sale Agreement,
All Land Sale Agreements are subject to final approval by the Fayetteville City Council.
Lastly, since this land is reserved for economic development purposes, the Department of
Economic Vitality would like to present the following information to the Fayetteville City Council
during the February 15, 2022 City Council meeting, which were derived from Cameron Clark's
email on January 13, 2022.
1. Capital investment for phase one;
2. Jobs retained, average salary, and total payroll;
3. B-Unlimited's intent to recruit mutually beneficial businesses to the Development Site
and Option Site.
Will you consent to City Staff using these figures in their legislative memo and presentation
during the City Council meetings in which these items will be considered?
Should the Fayetteville City Council approve the Resolution of Intent on February 15, 2022, the
earliest the Land Sale Agreement could be considered is the March 15, 2022 City Council
meeting.
Option Site
You have also expressed an interest in a 12-month option to purchase approximately 12.6 acres
of City -owned land (Parcel #765-16578-001) as outlined in Exhibit A, for $18,000 per acre. The
option to purchase will be discussed further in the Land Sale Agreement; however, while the
Administration will support the firm price of $18,000 per acre, the sale of the Option Site will
City of Fayetteville 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov
OFFICE OF THE MAYOR
require a separate agreement negotiated between the City and B-Unlimited and the City will
reserve the right to place additional terms and conditions on the sale of the Option Site.
Regards,
Susan Norton
Chief of Staff
City of Fayetteville, Arkansas
CC: Devin Howland, Director of Economic Vitality
Chung Tan, Deputy Director of Economic Vitality
Blake Pennington, Assistant City Attorney
City of Fayetteville 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov
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Please see exhibit B '• `�'
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or road specifications
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The data contained herein was compiled from various sources for the sole use and benefit of the
City of Fayetteville Geographic Information System and the public agencies it serves. Any use of
the data by anyone other than the City of Fayetteville is at the sole risk of the user; and by
acceptance of this data, the user does hereby agree to indemnify the City of Fayetteville and hold
Exhibit A the City of Fayetteville harmless from and without liability for any claims, actions, cost for
damages of any nature, including the city's cost of defense, asserted by user or by another
arising from the use of this data. The City of Fayetteville makes no express or implied
warrantees with reference to the data. No word, phrase, or clause found herein shall be
construed to waive that tort immunity set forth under Arkansas law.
Folder: G:\GIS2\Projects\2022\Commerce District Land Sale Negotiation\ 1/24/2022
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/ 765-16578-002
WD 2020-00045794
/ DUKE REAL PROPERTIES, LLC
(LOT14A1)
/ �4 \ R=200.00', D=81.86'
CH=S1202606"W, CD=81.29'
/ 30' ACCESS & UTIL ESMT
per PLAT 2020-00046356
CO Al /� N87° 02' 58"W-32.18'--------
A40 /
/
LEGEND
PROPOSED RIGHT-OF-WAY (R.O.W.) — — EXISTING PROPERTY LINE
L PROPOSED DRAINAGE EASEMENT (D.E.)
— _T`E� PROPOSED TEMPORARY CONSTRUCTION EASEMENT (TCE)
C E
BASIS OF BEARINGS: ARKANSAS STATE PLANE COORDINATE SYSTEM, NAD 83, NORTH ZONE. (NOT A PLAT OF SURVEY)
llOLT ,mnrvnce" DNAWDcsNe McCLELLAND
DATE REVISION INDUSTRIAL DRIVE EXTENSION mCECONSULTING
Dec.zozl EXHIBIT "A" CITY of FAYETTEVILLE, ARKANSAS ENGINEERS, INC.
SCALE PRUJ 1"=NUMBER _
60' z1-2106 MAP Tract 04 1580 E. STEARNS ST.
1 / 1 DUKE REAL PROPERTIES, LLC FAYETTEVILLE, AR 72703
(479) 443-2377
�oiHTTP:IIWWW.MCE.US.COM
HAMBER
FAY E T T E V I L L E
January 26, 2022
Mayor Lioneld Jordan
Fayetteville City Council
113 W. Mountain St.
Fayetteville, AR 72701
Dear Mayor Jordan and City Council,
The Fayetteville Chamber of Commerce is always seeking to help projects that support our
mission of advocating for a strong business climate on behalf of our membership. The
Fayetteville Chamber is writing to support the expansion 6-Unlimited, believing it will foster a
larger workforce and positive economic impact. The Chamber supports this initiative believing
that given 6-Unlimited's track record of excellence and growth, they will continue to support
the City of Fayetteville's economic development goals.
B-Unlimited has built a strong reputation of successful management and we believe their
experience speaks to their ability to facilitate a seamless and quality transition and provide
affordable services that are in high -demand.
The Fayetteville Chamber of Commerce has full faith and confidence in supporting B-
Unlimited's proposed expansion into the Commerce District. We are excited at the prospect of
supporting a premier expansion and our region looks forward to seeing the amazing impacts it
will bring.
Respectfully Yours,
President/CEO
Fayetteville Chamber of Commerce
21 West Mountain St. #300 * P.O. Box 4216 * Fayetteville, AR 72702-4216* TEL 479. 521. 1710 * FAX 479. 521.1791 * www.fayetteviIlear.com
CITY OF
FAYETTEVILLE
. ARKANSAS
TO: Mayor Lioneld Jordan
Devlin Howland, Director of Economic Vitality
THRU: Alison Jumper- Director of Parks and Recreation
Ted Jack- Parks Planning Superintendent
FROM: John J. Scott - Urban Forester
DATE: January 14, 2022
SUBJECT: Forestry Assessment, Parcel-765-16578-001- 19 Acres
STAFF MEMO
Devlin Howland asked for a report on the green area (Forest Assessment) for parcel 765-
16578-0001.
BACKGROUND:
Urban Forestry Staff reviewed the parcel's history and found that as recent as 2000, the majority
of the 19-acre parcel was a maintained agriculture field.
Fayetteville, AR 2M21
Tree Preservation Easement shown in green�,I r
y ;0� i • --
I
A
'ttevrlle
Sewer p
g,-,
Bright
Investments
r.^F..ayetteville-13.1
` Z_.
Parcel aerial imagery in 2021
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
The adjacent undeveloped property to the north is similar and contains a drainage pond. The
Fayetteville Sewer and Water offices lie directly to the west. The City of Fayetteville owns the
adjacent 13.1 acre property to the east and south. The forest on the 13.1 acres is a much older
forest. The property adjacent to the northeast is owned by Bright Technologies and is placed in
a tree preservation easement, shown in green.
SITE VISIT:
Staff utilized the utility clearing that runs along the parcel's east, north, and south sides to
access the site. Evidence of typical animals was found and seen during the site visit. Deer,
coyote, raccoon, and other mammals are typically found in areas like this, and evidence of all
three and many more was seen during the site visit. A few typical bird species such as crows,
blue jays, and red tail hawks were observed during the site visit.
FOREST:
The parcels forest is 21 years old, which in terms of forestry is not very old. The oldest trees on
the site are along the remnant fence row and scattered on the south border of the parcel. These
two areas contained significant trees on this site. The rest of the parcel consisted of smaller 8-
inch to 12-inch DBH (Diameter at Breast Height, industry -standard tree measurement) trees
about 20-30 feet tall.
The trees that have grown since 2000 are pioneer species of trees. Pioneer species are hardy
species that are the first to colonize barren environments. Typical pioneer tree species are black
locusts, honey locusts, Bradford pears, sweetgum, black cherry, and eastern red cedars.
Invasive species such as bush honeysuckle, privet, and Bradford pears are also dominant
pioneer species found on site.
The significant trees along the fence row consisted of hackberry, bois d'arc, black gum, and
cedar trees.
This young forest benefits our environment in the forms of carbon sequestration, animal habitat,
collecting air pollutants, stormwater mitigation, and other typical forest benefits.
SOILS:
The parcel is also located on hydric soils, which means the soil is saturated, flooded, or ponding
occurs. The West Fork of the White River is .78 miles to the east of the parcel. Town Branch is
.45 miles north of the parcel. A drainage channel runs along the east side of the parcel and
drains into the West Fork of the White River.
CONCLUSION:
The 19-acre parcel has a few significant trees worth preserving along the remnant fence row
that runs through the middle of the property and a few along the southern property line. Overall,
the forest is low quality because it is a very young forest dominated by pioneer species and
invasive species understory.
ATTACHMENTS:
Maps showing the history of the property.
Fayetteville, AR 1994
a'
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111312022, 2:26:24 PM
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Right -of -Way
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Drainage Easement
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111312022, 2:24:47 PM 1:4,890
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111312022, 2:23:52 PM
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Drainage Easement
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Access Easement
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111312022, 2:21:16 PM 1:4,890
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