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Pine Bluff City Council overrides mayor’s veto on funding for Urban Renewal Agency

Pine Bluff City Council overrides mayor’s veto on funding for Urban Renewal Agency
Pine Bluff Mayor Vivian Flowers (left) inquired about the historical basis for the city's decision to provide matching funds, which authorizes Pine Bluff Urban Renewal Agency to enter into a memorandum of agreement to clarify Go Forward Pine Bluff's financial commitments, which were not a prerequisite for the go-kart project. In response, Council Member Lloyd Holcomb Jr. (center) stated, "No, but we are today." (Special to the Commercial)

In a move that signaled continued support for the city’s Urban Renewal Agency, the Pine Bluff City Council overrode Mayor Vivian Flowers’ veto, setting the stage for a dramatic showdown over the future of key city development projects during Tuesday’s City Council meeting.

Following the override, the council adopted a resolution authorizing Urban Renewal to enter into a memorandum of agreement to clarify the financial commitments with Go Forward Pine Bluff. It was the first veto for Flowers, who said said she “did not obviously take this decision lightly” and hoped it would be her “last veto.”

Flowers outlined four core reasons for vetoing the resolution, saying the original document was “out of context, incorrect at best and dishonest at worst.” Her points centered on budgetary overruns and a lack of accountability for the use of city funds.

She noted that to complete the go-kart project, there “remains $1.4 million to complete the project,” which would ultimately “put the project at $1.7 million over budget.”

According to Flowers, the resolution “completely ignores the glaring project budgetary funding capacity and accountability challenges.” She argued that any resolution supporting the agency’s continuation “must be specific oversight and cost savings measures incorporated into this resolution.”

She criticized the resolution for “basically reappropriating $860,000 for the go-kart construction … with no specificity requiring no transparency or accountability measures.” Furthermore, she pointed out there was “no mention of where the money would come from in the city’s budget as the ordinance code requires.”

She said the $1.2 million commitment from Go Forward Pine Bluff “was raised and committed to complete construction,” and spending the city’s money upfront “basically allows Urban Renewal and Go Forward Pine Bluff to spend their dollars on the back end with no real commitment or oversight.”

Sponsored by council member Lloyd Holcomb Jr., the proposal seeks to formalize the partnership for the construction and operation of a go-kart track park.

The proposed agreement involves a financial commitment from both the city and Go Forward, a nonprofit organization established in 2017 with a mission to increase Pine Bluff’s revenues.

The memorandum outlines the roles and financial obligations of the parties involved in the go-kart project at 2100 E. Harding Ave., the former site of the Admiral Benbow hotel.

The family fun park, including the go-kart track, was identified by Urban Renewal and Go Forward as a key project for the site following the hotel’s demolition. The City Council previously allocated $860,000 on Dec. 14, 2024, to advance the construction of the park.

According to the memorandum, in support of the construction, completion and operations of the park, GFPB has pledged $1.2 million. This pledge is intended as a match to the city’s allocation and is designated as the final capital source contribution.

The memorandum stipulates that none of the $1.2 million pledge shall be spent until Urban Renewal has fully expended the $860,000. Once the city’s funds are spent, Urban Renewal may submit invoices to Go Forward until the full pledge amount is met. Funding from the pledge is explicitly prohibited from being used to pay any increase in construction cost resulting from delayed or nonpayment to existing contractors.

A critical condition of the agreement is tied to the continued existence of Urban Renewal. If the City Council dissolves Urban Renewal on or before Dec. 31, 2027, the $1.2 pledge will become null and void.

For Urban Renewal to agree, the memorandum mandates the City Council pass a resolution authorizing the action.

During public comments and committee reports, council members and city staff provided clarifications on how funds were intended to be spent.

In response to a public question from Kelly Martin on the $860,000 carryover from a 5/8-cent tax, it was clarified that the total carryover will be attributed to finishing the go-kart track.

Martin also questioned the purpose of a $66,000 allocation in Ordinance 4, abolishing the Urban Renewal Agency. A city official explained the funds were meant to meet the threshold for the money stated to be needed to trigger the $1.2 million in private funds.

Council member Lanette Frazier reported that a resolution authorizing a contract with Wagner General Contractors for renovations of 316 Main St. came out of the Economic and Community Development committee with a “do pass” vote.

“The building would be renovated so that, that way, it could have small businesses in there,” she said. “Almost like a little flea market setup.” The full council passed the resolution.

Citizen John Fenley spoke on the Urban Renewal issue, expressing deep concern over backroom control. “We got rid of the Go Forward tax,” he said, “but it seems like the people that were behind it are still doing their best to crawl into the woodwork and control things behind the scenes, pull some strings, control the school board, control the city council.”

Fenley also expressed sympathy for Flowers. “I just think I’m really glad I’m not mayor right now because you’re in a situation right now with a very unhelpful city council, and it doesn’t seem like this is going to work for anybody. It’s not good for the city.”

Flowers pulled another contentious item, which would have abolished Urban Renewal, from the agenda before a final vote was taken.

Amendments to the resolution supporting Urban Renewal were also passed by the council. Sponsored by council member Bruce Lockett, the proposed changes primarily focus on financial oversight and the go-kart course project.

The amendment stipulates that the public works director will inspect the construction project and forward all related invoices to the mayor’s office for approval. Following the mayor’s approval, the finance director will process the payment. This procedure will remain in effect until all construction work is fully completed.

The public works director will also be required to provide regular updates to the City Council on the project’s status. The resolution authorizes the transfer of $860,000 from the 2025 5/8-cent tax carryover fund balance into the fiscal 2026 budget. These funds are specifically designated for the go-kart project line item for construction, furniture, fixtures and equipment, along with the operation of the course.

Lockett said it addresses past oversight issues and provides clarity on Urban Renewal’s contribution. Lockett expressed confidence in the public works director, Larry Matthews, noting his experience in other public works projects would ensure documentation of all spending.

The resolution faced criticism from Flowers, who voiced concern over the selection of Matthews for the oversight role.

She stated it was “disturbing” that she was not consulted regarding the oversight role for Matthews. Her primary objection centered on his lack of direct authority over Urban Renewal’s decision-making body.

According to Flowers, Matthews works for Economic Development, under the mayor’s authority, and has “absolutely no connection or responsibility” to the Urban Renewal board, which is responsible for spending decisions.

Flowers argued that while she has “total and complete faith” in Matthews’ expertise, he will have “no authority, no responsibility” to ask the board to halt or change any change orders. She concluded that this setup would not provide “adequate oversight” and puts Matthews in an “unfair and tough position” if he were to observe illegal or inappropriate conduct.

The discussion also featured a brief, tense exchange when a council member incorrectly associated the Urban Renewal Agency with Simmons Bank, and Flowers immediately corrected the statement. A subsequent comment from another member comparing the situation to “slavery” was quickly dismissed as “inappropriate, not true.”

The new procedures are set to remain in effect until all construction work for the project is fully completed.