Osage Creek Amphitheater lacks cash to complete

SILOAM SPRINGS —  The Osage Creek Amphitheater was billed as one of the largest music venues to be built in the area, with a seating capacity for nearly as many people as the BOK Center in Tulsa. Legendary country music icon Willie Nelson was supposed to be the opening act in July of 2011.

Willie’s folks had even promoted it on the Internet.

But then a funny thing happened on that site in southwest Benton County. Construction came to a halt, and the opening concert was canceled. Greg Smith, owner and developer of the amphitheater, was quoted a year ago as saying, “Mother nature didn’t cooperate with us.”

But that wasn’t quite true. While yes, mother nature did throw some kinks in the development of the site, the Osage Creek Amphitheater was really just a money pit that was nowhere close to opening.

The first signs of trouble surfaced early last summer, when design changes were proposed. Tim Sorey, an engineer working on the project, came before the Benton County Planning Board to present plans that scaled back the project, reducing the number of permanent buildings on the site from nine to five. Sorey also told the board that there would be no permanent restroom facilities on the site. Instead, portable toilets would be brought in for use during events, and water would be shipped in, as well.

The final major change — seating capacity. The board was told the amphitheater would hold 5,000 concert-goers, nowhere near the 19,000 of the BOK Center.
   
Several people familiar with the project said recently that financing became an issue with the project.

One of those individuals, Benton County Judge Bob Clinard, said the county paved a road leading to the amphitheater at Smith’s request.
“He came to us, showed us plans and brought in a civil engineer,” Clinard said. “It looked like a good project for the county.”

While Clinard liked the idea of an amphitheater in the county, he said the county did not have the funds in its budget to pave the road. So Smith agreed to pay for the materials using an irrevocable letter of credit for $125,000 if the county would pave about 1.2 miles of Logan Creek Road. The county agreed and paved the road, coming in under budget, according to records from the Benton County Road Department. The total cost for materials totaled $112,365, though the county was not reimbursed for labor expenses.

Looking back on what has happened with Osage Creek, Clinard says he is unsure if he would have made the same decision today.

“Had I known that [Smith] couldn’t get his financing and not complete his project, I may have reconsidered,” the judge said.

Siloam Springs Chamber of Commerce President and CEO Wayne Mays says the project would have been a good fit for his community.

“Osage [Creek] was an attractive cultural venue as an alternative closer to Siloam [Springs] than Walton Arts Center or Crystal Bridges,” Mays said.

“A weekend concert [would] impact us like a Razorback game weekend.”

A venue capable of drawing chart-topping performers would bring visitors from as far away as Tulsa and Oklahoma City, providing a boost in the sales tax revenue that supports the growing city, he added.

While the project had the potential to draw in additional visitors and with it, accompanying hotel and restaurant development, nothing ever came of it.

“No additional development came to the area, due to the uncertainty of the project,” Mays explained.
   
Smith declined comment on the project, including how much money was sunk into it. To talk about it, he said,
could jeopardize talks with potential investors, some of whom he met with last week (the week of July 9).

A source familiar with the project but asked not to be identified confirmed that Smith met with two potential investors who themselves have big dreams for the project, including the potential of adding sky boxes and additional amenities. The source explained that the potential investors are billionaires with the funds necessary to bring the project to completion.
   
According to documents on file in the Benton County Assessor’s Office, Smith and his wife own much of the land where the amphitheater is under construction. The appraised value of their land is$755,250. Additionally, Smith co-owns several pieces of land adjacent to the site with a prominent real estate broker, Kirk Elsass.

“I’ve known [Smith] a long time,” said Elsass, who is not an Osage Creek investor. “Blood, money, everything he’s got has gone into this project. I don’t doubt he’ll get this completed.”

However, the aforementioned source is not so certain.

“Greg needs these investors,” the source said. “He is highly leveraged.”