FCRA approves extension request on long-dormant commercial development plan

The Fort Chaffee Redevelopment Authority (FCRA) on Thursday (July 19) reluctantly approved a third one-year extension request from Chaffee Crossing Real Estate, Inc., the owners of a 90-acre parcel along Highways 59 and 22 in Barling.

The land — originally purchased in July 2013 by the late Dr. Marion Smith — is intended to be a commercial development similar to Fort Smith Pavilion. Smith, a Hot Springs-based veterinarian, envisioned the development as “small and large-box retail” with a “gas station, restaurants, and office space,” according to the extension request.

However, she died suddenly in 2014 after battling lung cancer for many years, leaving the development in limbo with her widower and brother-in-law disagreeing over the future use, according to FCRA Executive Director Ivy Owen.

Family friend Mike Tankersley also went in on the originally 105-acre development but broke off his 15-acre piece following Smith’s death. The FCRA has filed a lawsuit against Tankersley for the right to repurchase his acreage for the $285,000 he paid for it. Tankersley had sought and been granted four extension requests before the FCRA pulled the plug on a fifth attempt last November. Depositions for the suit are slated for Aug. 30.

As for the larger piece, the FCRA’s real estate review committee on July 12 had voted to deny the extension request and exercise the trust’s right to repurchase the 90 acres for the $2.025 million original purchase price. Owen told Board members he couldn’t make a recommendation to proceed with that decision although the trust “should buy it back,” but it would be forced to borrow the money if it decided to do so.

Since the FCRA can exercise its repurchasing rights at a later time, Board members agreed to grant one additional year pending two relevant actions coming due in October. The first will be the Arkansas Department of Transportation (ArDOT)’s findings on an in-process tolling study along with relevant recommendations toward the future of a 13.7-mile Interstate 49 (I-49) piece connecting Barling to Alma. The second will be Ports America’s findings on the viability of the 59/22 stretch as a possible future site for an intermodal shipping facility.

Given the terms of the original agreement, construction was supposed to begin within one year and finish in three. However, there has been no activity since the deal closed more than five years ago.

Also Thursday, the Board granted an extension request to TRCP Investments for expansion of the existing RV park at Chaffee Crossing and construction of mini-storage buildings. TRCP is under construction on the expansion and hopes to have the project completed by the end of the year.