Go Forward Pine Bluff is experiencing a period of significant development, with multiple projects underway. However, with the impending expiration of a key tax, there’s a heightened focus on project timelines and funding.
Progress on Sixth and Main project
The Sixth and Main project, a commercial development, is reported to be nearing substantial completion, with landscaping work set to begin soon. Following this, vendors will require a 30- to 45-day period to acclimate to the space. While an August completion was initially projected, delays arising from financial discussions and construction hiccups have pushed the timeline back. Despite this, the project is expected to be operational by UAPB homecoming week in late October.
“While we’re anxious to get this open, we also do not want to rush and open it when things like the functionality is not at a high level,” said Go Forward Pine Bluff CEO Ryan Watley. “That’s why that period for vendors to get in and get used to the space is very important.”
Independent reporting for Pine Bluff & Jefferson County since 1879.
Go-kart track construction
The go-kart track project has also encountered delays, primarily due to necessary adjustments to the scope of work. The deadline for subcontractor bids has been extended to Aug. 19 to accommodate these changes, which include concrete repairs and the removal of a planned orientation building.
Preliminary estimates for the building itself fall within budget. Pending finalization of subcontractor costs, construction is anticipated to commence in September, with a projected opening in the spring of 2025. The track will feature electric karts and concessions managed by Big Banjo. Ongoing fundraising efforts aim to secure additional funding for construction and operational costs.
“There’s a slab that we thought we were going to need to build,” said Watley. “It’s going to be removed now, so we need a little more time.”
Watley said the size of the building will be 5,000 square feet with a canopy for the cars. He said though no contractual obligation has been set with Big Banjo, a letter of intent remains as well as constant contact with the team.
“When a lot of the rhetoric was out about the project not going to happen, we had to talk to our partners and let them know where we are so they could have some firsthand information,” said Watley. “That type of stuff is dangerous because people get scared and also on our end, we’re holding their money up. We must be intentional and expeditious.”
Watley said the project is delayed because they are trying to secure the best prices.
“Big Banjo has a significant investment pending in terms of buying all their kitchen equipment, which is hundreds of thousands of dollars and employees,” said Watley. “That will be one of the components of the private investment.”
Hotel project initiative
The Convention Center hotel project is progressing, with the City Council recently passing a resolution supporting the development.
A key factor in the project’s advancement is the anticipated approval of the abatements to meet the U.S. Department of Agriculture guarantee’s September deadline. Demolition work on the Plaza Hotel also began this week.
Watley thanked the City Council and the Hotel Public Facilities Board for their roles, and the P3 Group, who he said is spearheading the hotel project initiative.
Last month, the city was authorized to issue a promissory note on a loan of up to $3 million. The money is intended to finance the purchase of furniture, fixtures and other necessary equipment for the hotel, which would be connected to the Convention Center and replace the Plaza Hotel.
Housing projects
Several housing projects are also in the pipeline. The Southeast housing project, involving the redevelopment of a former school site on Ohio Street, is currently in the negotiation phase with potential developers and financing entities.
“Urban Renewal, what they were able to do was acquire the former Southeast School from the district,” said Watley. “From that point, it was transferred to the city and the mayor has been handling it from that point.”
Downtown apartments at Sixth Avenue and Convention Center Drive are also under discussion, with renewed interest from investors in Texas. While details remain undisclosed, conversations suggest potential movement on these projects in the near future.
“We believe it’s a game changer for Pine Bluff,” said Watley, adding he has had some positive conversations in recent weeks with investors. “They’ve been in town to visit, and I think that project will start before the end of the year.”
Watley said he was thankful that the investors still had an interest and stated, “They never backed out.”
In June, Watley revealed that the $8.5 million upscale complex project was on hold due to funding issues. The public-private partnership between the city and Cedar Crest Development was initially planned. However, the project faced a setback when the Go Forward-sponsored sales tax renewal was defeated last November.
In a previous interview with The Commercial, Washington said she received information that the Dallas-area companies Cedar Crest Development and KEE Concrete and Construction would not be able to move forward because of projects that were already underway.
“They had some members of their team decide they weren’t going to do certain parts,” said Watley. “There’s been some action in terms of they know the price and they have some funding. It is more than talk.”
Watley said with the marketplace being tricky with high interest rates, securing total funding has been an issue.
Additional projects and funding initiatives
Other ongoing initiatives include the Generator, a community and economic development program, and career-focused programs for local students.
Funding for these projects is multifaceted. While tax revenues have played a role, other sources including grants and private investments are being leveraged. Notably, a $20,000 incentive program, funded by tax revenues, aims to bridge the affordability gap in housing construction.
The ALICE program also has money set aside for people seeking homeownership. “When people know there is a market where people can afford homes, there’s a market for developers to build homes because they know people can afford it and get financing,” said Watley.
According to Watley, The Neighborhood Enhancement Act closes the gap between building and the cost of construction. The incentives go toward construction costs.
Transparency and public trust
Efforts are being made to ensure transparency in the utilization of tax funds, particularly with the looming tax expiration. Detailed financial reports are being prepared to provide a clear account of expenditures and project statuses.
Overall, Pine Bluff’s development landscape is active. While challenges and delays are evident in some projects, the outlook remains optimistic, with ongoing efforts to secure funding and ensure timely completion.
“One thing that is for certain that will happen in September is that the additional sales tax will not be on your receipts,” said Watley. “That is the only thing for certain that will happen.”
“We don’t just get money each month and spend it all. That money is in the accounts to be able to fund these projects.”
Watley said the work will extend beyond September, although the revenue will cease at that time.
“That’s why we must work to get grants to sustain some operations and work with other partners,” he said. “It’s all about operations once we finish construction. We are still in fundraising mode.”
According to Watley, Sixth And Main is paid for, securing the $2 million investment from Simmons Bank to finish that project. For the go-kart track, Watley said the money available is carryover, and each month Go Forward is monitoring the deposit of the sales tax and the money. He also states that $2.9 million is reserved for the hotel.
Watley said the collection of the tax is averaging about $20,000 more than the budgeted average of approximately $444,000 a month for 2024.
“It’s performing well above what we averaged out,” he said.
While Go Forward is working on a cash flow budget, Watley said there is money accrued to take care of bills and current construction projects.