Resolution could give Fort Smith full operational control of Parrot Island Waterpark

Fort Smith Director Kevin Settle understands the Parrot Island Waterpark controversy, but said the amenity that has more than 100,000 annual visitors will have a “long-term benefit” for the city, with that benefit eventually coming at little or no cost to the city.

The Fort Smith Board of Directors on Tuesday (Dec. 16) is expected to vote on two waterpark resolutions. One would extend the lease with Grand Prairie, Texas-based American Resort Management (ARM) through 2026. ARM has managed the watepark since it opened in 2015. A second resolution would place full operational control of the waterpark with the city of Fort Smith. Control of the waterpark is now jointly held by the city and Sebastian County.

A purchase of five water slides approved by the Fort Smith board in July 2024, was rejected by the Sebastian County Quorum Court. Each party would pay $2.1 million, but the Fort Smith board approved the full $4.2 million when county officials declined to participate.

The water slides that initially were to cost the city $4.2 million for acquisition and installation could now cost more than $6.3 million. Acting Fort Smith City Administrator Jeff Dingman told the board Oct. 21 that the low bid to install the slides was $2.8 million, which would push the total cost to acquire, assemble, and install the slides to around $6.35 million, well beyond the board-approved budget of $4.2 million. The city, according to Dingman, has already spent $3.55 million to acquire the slides and to prep them for installation.

It remains uncertain what will happen with the water slides. City staff has been encouraged by the board to come up with options. Directors Christina Catsavis and George Catsavis have called for the slides to be sold to recover as much of the $3.55 million as possible.

‘SHIFTING PRIORITIES’
Sebastian County Judge Steve Hotz told Talk Business & Politics that he and the Quorum Court had “a problem” with the city “going off without their partner and then buying those slides.” However, he said the waterpark is good for the region.

“We love the waterpark,” he said. “We know that it is a valuable amenity for the community, we understand. If the city has the money to make it go, then fine, have at it and run with it.”

The Quorum Court has approved a resolution granting the city full operational control of the waterpark. However, if the waterpark closes, the 20.78 acres – located within the county’s Ben Geren Regional Park – would remain a county-owned property.

“I would love to see the city take it over,” Hotz said. “Simply because I know the city has much more money than the county does.”

Settle said he appreciates the county’s position.

“The county has been good partners, but I think they have some shifting priorities and I respect that,” he said.

MORE REVENUE
Settle, the vocal leader on the board for the waterpark and its expansions, said having a single entity control the park “is in the best long-term interests” of the park and the management company. Settle said there are several reasons for the city to control the waterpark and to support expansion with the new slides.

First, there are revenue-enhancement opportunities that the city can pursue with ARM, he said. One opportunity is to allow the waterpark to sell alcohol for certain events, like private parties. He said there are other “lessons learned” by ARM that can be used in Fort Smith to improve visitor counts and revenue.

With more revenue, the city can work contractually with ARM to use extra revenue to pay the city back for previous expenses, including water slide purchase and installation, Settle said. He also said the increased visitor count with new slides will generate more revenue from ticket and concession sales.

A partial revenue return is possible. The waterpark is estimated to have a net operating loss of $255,789 in 2025, thanks in large part to an unusual number of rain days. However, the park has posted cumulative net operating income of $1.102 million since opening in 2015.

There also are new branding opportunities that could draw more visitors, Settle said. He referenced a recent deal between ARM and Mattel Inc. to incorporate the popular Mattel toy brands – to include Barbie, Fisher-Price, Hot Wheels, and American Girl – with ARM waterpark events and signage. However, it is unclear if that deal applies to Fort Smith. The Nov. 18 ARM press release indicates the branding will apply only to “five unique destination waterparks with launch dates to be announced.”

“I hope that my explaining this (long-term benefits) will convince a majority of the board to come along,” Settle said when asked about Tuesday’s vote. “But I know that some people are dead set against this water park.”

OPPOSITION
Director Christina Catsavis noted in a recent social media post her opposition to considering full operational control of the waterpark during a regular meeting. She said the measure should first be brought before the board during a non-voting study session, which was the purpose of an ordinance she proposed and was approved by the board on Nov. 18.

“Taking over full operation of the waterpark may not be labeled a capital expenditure, but it is unquestionably an expenditure,” she wrote. “It brings ongoing financial liabilities, maintenance responsibilities, operational risk, and the likelihood of future capital needs. It is exactly the type of decision that should go through a study session so that both the Board and the public understand the implications. Pushing this forward without that process violates the spirit of my ordinance.”

Hotz said he is not sure what happens if Fort Smith does not approve the proposed resolution.

“I don’t know. We would have to go back to the table and figure out how to handle this.”