ASU Mineral Rights Won’t Block City’s Convention Center Plans
by October 14, 2015 3:51 pm 153 views
The fact that Arkansas State University owns an undivided one-half interest in any or all oil, gas and other minerals that may be under the ground at a proposed convention center in Jonesboro provides them no opposition to the project, a university spokesman said Wednesday.
“I have no idea whether A-State could try to block, but we will do nothing to block the development,” ASU spokesman Jeff Hankins said of the proposed plan along U.S. 63.
A group, Keller Construction of Effingham, Ill., announced plans in August 2015 to build a hotel and convention center on the site of the former Arkansas Services Center on McClellan Drive. The project is a 152-room Hyatt Place Hotel and Conference Center.
Officials with ASU announced plans in February to build a 200-room Embassy Suites, a 40,000 to 50,000 square-foot conference center and Houlihan’s restaurant at the former ASU track and field complex.
Hankins said state law requires ASU to maintain a half-interest in mineral rights for any property it sells, noting the university sold some of the property to a group, Centerline LLC, associated with the developer of the project, Halsey Thrasher Harpole.
The land, roughly three acres, was sold in October 2013 by the ASU system to Centerline LLC.
“On October 31, 2013, ASU System sold its undivided interest in property located at 2920 McClellan Drive, Jonesboro, Arkansas to Centerline, LLC,” minutes to a September 2014 ASU Board of Trustees meeting showed. “A clerical error occurred in the survey, which inadvertently included 2.93 acres owned solely by ASU and not subject to sale.”
The minutes also showed that “At closing, only the property located at 2920 McClellan Drive was transferred; however, the new owners believed they were purchasing all land within the erroneous survey. Centerline, LLC now desires to purchase the 2.93 acres.”
Bids were taken on the property, which was sold for $126,846.64, the records showed.
The overall property was sold in July 2013, with City Water & Light of Jonesboro providing a $1.1 million offer for the property, university officials said at the time.