The Pine Bluff City Council tabled a measure that sets out the terms for taking possession of Simmons Bank property at Sixth Avenue and Main Street plaza.
The proposal was presented to council members on Monday as a resolution, which has already been agreed to by the city’s Urban Renewal Agency’s board. But with the possible dissolution of the URA, the terms of the property transfer, which includes a $2 million donation to the plaza project by Simmons, now need to be approved by the city council.
The sticking point appeared to be the risk of losing the property if the plaza, which will provide spaces for pop-up food and other vendors, ceases to operate as envisioned. Language in the agreement states that if the city was to transfer the property to another entity or use the property for another purpose, the property would revert back to Simmons.
Council Member Bruce Lockett said a worst-case scenario would be that the plaza opens but the city is unable to keep it open due to a lack of funds and then the property goes back to Simmons.
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“URA had a budget and a way to support this,” Lockett said. “But this project was borne of a tax that no longer exists.” He added that when Urban Renewal agreed to the arrangement with Simmons, the sales tax supporting Go Forward Pine Bluff was not a consideration.
Now, because the five-eighths-cent sales tax has not been renewed and is set to expire at the end of September, keeping the plaza open could be more problematic because of a lack of finances, Lockett said.
Lockett suggested that a memorandum of understanding be created by all interested parties to make sure that Simmons, Urban Renewal and city officials were all in agreement about the status of the plaza and plans for its future.
Council Member Glen Brown Jr. said he would be more comfortable passing the resolution if such an agreement was in place now — before he votes on it. He also questioned why the council was being asked to approve a measure that had already been agreed to by Urban Renewal.
“Why are we deciding on this when we have not been at the table?” he asked.
The plaza is a Go Forward Pine Bluff project. Go Forward CEO Ryan Watley, who was present at the council meeting, told the council that the arrangement was a “very complex deal” but a “very good project,” adding that he was not entirely sure why the matter was being brought to the council.
Assistant City Attorney Joe Childers said any change to the agreed-upon contract with Simmons Bank regarding the property would have to be approved by the bank.
The bank, Childers said, simply wants to make sure that if they donate the land and money that the city “will abide by the terms of their gifts.”
In the agreement, Simmons also asks for an easement across the property so that the bank can install and service an ATM machine, and the bank wants to maintain naming rights for the building being donated.
Watley said the $2 million donation from Simmons had been part of the conversation about the project for some time and that Go Forward appreciated the support.
“We’re very grateful for the money, as it will help us complete the project,” Watley said.
One council member, Glen Brown Sr., asked that the two-plus-page agreement be written in simpler terms so that the public can understand it.
Childers said the document was “mostly written by attorneys for Simmons Bank.”
In other council business:
Two proposed ordinances being pushed by City Clerk Janice Roberts – one regarding bills and the other having to do with public comments – were approved, but a third proposed ordinance regarding how invoices are handled throughout the city was rejected.
The Carl A. Redus Jr. Aquatic Center was separated from the Parks and Recreation Department and made its own department. Mayor Shirley Washington said the move was necessary because of the extra work the parks department has taken on with the operation of Harbor Oaks Golf Course. The salary for the director of the aquatic center was also increased from about $47,000 to $56,000.
The council passed a resolution allowing the mayor to commit $575,000 to flood mitigation on land on which low-income housing will be built. The land is on Ohio Street where the old Southeast Middle School was once located.
The council approved the appointment of Atless William Brown Jr. to the Pine Bluff/Jefferson County Library Board.