Fort Smith board endorses 1% food tax option

story by Luke Hobbs
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The Fort Smith Board of Directors voted 6-1 on Tuesday (Aug. 16) to endorse voter approval of the 1% prepared food tax, which has already been placed on the Nov. 8 ballot for voters.

The tax was originally enacted by the board in February as a solution to an annual deficit with Fort Smith Convention Center operations predicted to occur when $1.8 million in annual state turnback money dried up. The state turnback program—which supported expansion or construction of tourism facilities — ended for Fort Smith in June 2010. The center has since operated on a reserve fund.

The board changed direction on the tax after months of public uproar, which included a petition drive to force the tax to an election and a court hearing that essentially overturned the city’s rejection of the petition drive. In a July 28 special meeting, the board unanimously voted to repeal the original food tax ordinance, re-enact the tax, and send the measure to voters in a Nov. 8 special election.

In Tuesday’s meeting, several directors reaffirmed support for the tax. City Director Kevin Settle, who voted against the board enacting the tax in February, said he had always wanted the people to decide the issue. He pointed out that if voters approve the tax, the convention center will be run by the Fort Smith Advertising & Promotion Commission (A&P), not the city.

“Some people have expressed to me that the city needs to get out of this business,” he said. “Well, here’s the opportunity to take management away from the city.”

City Director Don Hutchings also voiced support for the tax, saying, “Many cities in Arkansas would love to have a convention center like ours and the $20 million it brings.”

Hutchings said since becoming a member of the A&P, he has learned even more about how the center benefits the Fort Smith area.

Tonight’s vote did not enact anything new, but merely established the board’s official position on the food tax. City Director George Catsavis voted against the endorsement measure.

MALLALIEU DEMOLITION
The board also voted 4-3 to authorize the immediate demolition of the old Mallalieu Methodist Church building, with the caveat that the demolition contractor must attempt to preserve the church’s south facade.

The city acquired the church, located at 800 N. Ninth Street, in early 2000 with the plan to convert it into a multicultural center. However, the city was unable to afford the $800,000 initial renovation costs, and by 2007, costs to renovate and complete the project had soared to as much as $3.5 million. Soon after, the city moved to demolish the building, and received an estimate of $189,000 for the demolition work.

In February, the board gave Monte Wilson, Scott Hathaway and others involved in the Mallalieu restoration effort 90 days to come up with a viable restoration plan or the city would be forced to demolish the unstable structure.

In May, University of Arkansas at Fort Smith Chancellor Paul Beran revealed a more than $1 million plan to convert the property into the “Mallalieu Center for Academic Excellence.” Beran told the board he was “talking quietly” with potential in-state and out-of-state donors on the project for more than two years. His goal is to create a center that would target “students at risk” who show potential for academic excellence.

Beran, along with Wilson and Hathaway, had asked the board for $300,000 to demolish part of the old church building and secure the “landmark” facade.

The building’s demolition and Beran’s request had been set for discussion at the next study session on Aug. 23. However, City Planning Director Wally Bailey told directors tonight that the building is significantly more structurally unsound now than several weeks ago, making immediate board action necessary.

In Tuesday’s meeting, the board appeared to be divided on whether to simply demolish the entire structure for $189,000, or to try to preserve the facade for around $300,000. City Directors Settle and Don Hutchings both contended that safety was the most important issue and argued for demolishing the entire structure while saving some bricks for a memorial to the old church.

City Director Steve Tyler agreed with them, saying he would rather spend any extra money on the new academic center, not on trying to preserve the facade.

But City Directors Pam Weber, Philip Merry Jr., and Andre Good all voiced support for keeping the facade, appealing to the significance the Mallalieu church has had for the area.

Bailey told directors that if they voted to attempt to preserve the facade, there was no guarantee the attempt would succeed. He said the estimated chances of saving the facade were “70-80%.”

Hutchings moved to adopt an ordinance demolishing the building but not calling for preserving the facade. Good responded with a substitute motion to demolish the building and attempt to preserve the facade, and it was approved 6-1, with Settle the lone ‘no’ vote.

According to City Attorney Jerry Canfield, the board will have to call a special meeting in the next few weeks to approve a contract for the extra work, because there is no contract that includes the expense of preserving the facade.

WATER STUDY
The board also voted unanimously to approve hiring Omaha-based HDR Engineering Inc. to conduct a study of water and sewer systems efficiency in the city. The company works with municipalities in all areas of utility engineering and operations.

The company has estimated the study will cost $114,180 to complete, and the ordinance approved by the board limits city spending on the study to that amount.

In last week’s (Aug. 9) study session, HDR representatives told the board they plan to start the study immediately upon board approval, and that it will likely extend into January 2012.