11-28-00~ • ~' Board of Directors Room
City Hall — 500 W. Markham
Little Rock, Arkansas
November 28, 2000
4: 00 P.M.
The Board of Directors of the City of Little Rock, Arkansas reconvened from November
21, 2000 regular meeting with Mayor Dailey presiding. City Clerk Nancy Wood called
the roll with the following members present: Directors Pugh, Keck, Stewart, Vice Mayor
Wyrick, Kumpuris, Cazort, Kelly, Adcock, Hinton, and Lichty.
With a quorum present, Mayor Dailey declared the Board of Directors Reconvened
Meeting in session and announced the purpose of the reconvened meeting was to
consider:
1. INTERVIEWS - To consider applicants applying to the Little Rock Airport
Commission. The following applicants interviewed for the position on the Little Rock
Airport Commission: Mr. James Darr, Jr., Mr. Jeff Hildebrand, Mr. Jim Hobson, Jr., Mr.
James Moses, Mr. Thomas Schueck. Interviews were conducted in the public meeting.
The meeting was recessed at 5:40 P.M. to an executive session to consider appointment
to the Little Rock Airport Commission, the Animal Advisory Board, and the Vision Little
Rock Team. The meeting reconvened at 6:05, and Mr. Bruce Moore, Assistant City
Manager, announced the following appointments: Mr. James Moses, to the Little Rock
Airport Commission, Mr. Lindell Lay to the Little Rock Vision Team, The Animal
Advisory Board appointments were: Ward 1 (To be re- advertised), Ward 2 (Betty
Fletcher) Ward 3 (John Yarbrough), Ward 4 (Kay Risser), Ward 5 (Linda Waters,
Ward 6 (Lynn Sims), Ward 7 (Pam Adcock), Dr. Darrell Riffel, Veterinarian, and
Director Joan Adcock, sitting board member.
2. RESOLUTION NO. 10,939- To make an appointment to the Little Rock Airport
Commission.
3. RESOLUTION NO. 10,940 - To make appointments to the Vision Little Rock Team.
4. RESOLUTION NO. 10,941 - To make appointments to the Animal Services
Advisory Board.
A motion was made by Director Cazort to make the appointments to the listed Boards
and Commissions. Vice Mayor Wyrick seconded the motion, and by unanimous voice
vote of board members present the named nominations were accepted. Mr. Carpenter,
City Attorney, stated that in light of how the ordinance and statute both read, regarding
the appointment to the Airport Commission he thought a motion would be in order to
indicate that Mr. Fortson, will be the considered the licensed aeronautical rating member
of the Commission. A motion was made by Director Keck, seconded by Director
Adcock, and by unanimous voice vote of board members present, the motion carried.
Item M -1 — RESOLUTION NO. 10,938, - Of intent to enter into an agreement with
Deltic Timber, Inc. for acquisition of 617 acres for park property, was added to the
reconvened meeting agenda by a motion from Director Kumpuris, and a second by
Director Cazort, and with a unanimous voice vote of board members present, the item
was added to the agenda.
Mr. Bruce Moore, Assistant City Manager, stated on the agenda were listed an ordinance
and a resolution regarding a partnership with the Arkansas Residential Housing and
Public Facilities Board. He stated this was a recommendation to possibly acquire
property in west Little Rock for park purposes. Also there is a resolution for
consideration that expresses the intent of the city to enter into a contract with Deltic
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Timber for acquisition of the 617 acres for park property. Mr. Moore stated the staff
recommendation would be to remove items 6 and 7 from the reconvened meeting agenda,
and for the board to consider the resolution of intent to enter into an agreement with
Deltic Timber. Vice Mayor Wyrick stated she had a question for Mr. Carpenter, the City
Attorney. She asked exactly what does this resolution state for the board to do? She
indicated she understood the word, intent, but did this obligate the city to purchase the
property, or was this just a resolution to strongly support looking into purchasing this
property? Mr. Carpenter stated he felt it was a little in- between being merely a resolution
of intent and being commitment to go forward. He said what he understood has
happened was that there was initially a December 31, 2000 deadline to declare the city
would go forward and purchase this property. This effectively says the city has until the
early part of the first calendar quarter of 2001 to go forward and set forth how the city
will purchase this property for the approximately $4 million dollars invoice that is being
offered. It says the board intends to take this action. In terms of if, in going forward, and
looking at funding mechanisms the board concludes this is not the thing to do, then this
does not bind the city to formally purchase the property. It is not a commitment, however,
because of the terms of this situation and whether or not Deltic Timber would hold the
property and not sell it, he thought the purpose of this resolution was to tell them that
barring some unforeseen circumstance, it is the boards intent to actually purchase this
property, and that the city is asking for the time to work out the best financing
mechanism. Director Wyrick said she was not necessarily comfortable with the staff
recommendation of the using the Public Facilities Board, and wanted to know if in the
event that a satisfactory option was not found, that the city could not be bound to secure
this amount. Director Kelly stated, regarding the wording of "an acceptable funding
mechanism ", that he assumed if the board approves the funding mechanism then it is an
acceptable funding mechanism.
Director Keck asked for a staff presentation. Parks Director Bryan Day presented the
park plan, saying this could eventually be a regional park, with a sports facility that could
generate a lot of income. He says this land will always be park open space, which our
children and grandchildren will enjoy. He said the park does not have to be developed
right away. He said he feels it's important to acquire the land now, this type of
opportunity does not often come along, and it would be an investment for the future.
Director Hinton stated he liked the idea of a regional park serving the whole area. He
said the funding concerns him, and doesn't particularly like what was presented tonight,
but felt confident other sources could be explored. Several financing options were
discussed Mr. George Campbell, attorney for the Little Rock Residential Housing and
Public Facilities Board, stated that it's contemplated in the bond issue that was being
discussed, that there would be an option for early redemption of the bonds. Normally on
a twenty -five year issue it would not be sooner than ten years. His thoughts were that it
could be structured at ten years at no penalty and thereafter with no penalty through the
rest of the fifteen years on the term. He stated there exists mechanisms which the city has
used frequently called the defeasance, which you take a sum of money buy US Treasury
obligations, earn the interest off that to offset the cost on the bonds and free up the title to
the asset. He said he could not promise that you could do that advantageously, but
mechanically it could be done so that the option to acquire it any time there was enough
money to invest to pay off the bonds even though the bond could not be redeemed that
day. Director Pugh acknowledged that west Little Rock needs a park, but that the
funding part bothered her. She stated that in the inner city bathrooms are being closed
down. The south end park in her ward has a portable toilet, and she thought the city
needed to do better than that. She said she felt the city needed to find some funding to
take care of what is already in the city as well as buy and build one out west. Director
Stewart agreed that a park in west Little Rock is needed, but also had a problem with the
funding. Ms. Stewart stated that in areas such as Geyer Springs and John Barrow, there
are children trying to get to school that don't have sidewalks that money is needed for,
there are critical drainage problems that hasn't been addressed that the city does not have
money for, that community centers are needed, and when she weighed very critical
issues, and looked at the budget, which reflects there is no money, the budget process is
not even completed, and already there is a new project requiring an enormous amount of
money, and she was for private financing, donors, etc., but if it was going to take away
from sidewalks, drainage, community centers, educating the kids, and projects that have
been started and never completed, how these existing things be put aside and look at a
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long range plan. She said she was looking at the budget right now, and how would
monies be found to do the smaller things, and felt it would be irresponsible of her to
support something like this, when there were more critical immediate issue to deal with.
Mayor Dailey declared the public hearing open. Mr. Ted Goodloe, president of the
Riverdale Soccer Club, spoke in favor of the purchase stating that there were not enough
facilities for the kids participating in softball and soccer leagues that more space is badly
needed. He said the membership in these leagues has grown from less than a hundred in
1985 to 1400 members as of this year. Mr. Shawn Porter spoke in opposition of the park
purchase. He agreed that parks were need in west Little Rock, stated there were a lot of
recreational land and opportunity already out there. He asked if kids would be bussed out
there since this is about twenty miles out of Little Rock. He asked if anyone had talked `®
to the residents in the area? Mr. Porter said he thought Directors Pugh and Stewart were
right on the mark in identifying existing problems, and take advantage of opportunities as
they exist right now. He said he would like to see more land acquired for public space
but there needed to be more citizen involvement in identifying the locations were parks
are needed and more citizen support of the funding mechanisms that go into purchasing
those parks. Ms. Dee White spoke in opposition to the parkland purchase, saying the
city was entering into a deal with the devil, by racketeering with a timber company to log
the land.
Mr. Jim Lynch, New Party co- chair, spoke in favor of acquiring the land, but felt
alternative funding should be looked at. He suggested buying the land with a new sales
tax, stating that the proceeds could finance the 617 acres, as well as repay the $16.5
million in park revenue bonds used to acquire the Clinton presidential library site. He
stated the advantages would be overwhelming and if the city waited to purchase the land,
the opportunity would not be there. Mr. Dave Roberts, landscape architect, currently a
member of the design team working on the Park Master Plan for parks and Recreation.
Mr. Roberts spoke in favor of the plan, and the importance of the project to the Master
Plan. He said they are currently about half through the Master Plan. He said the
importance of acquiring that land is the western growth. As the city continues to grow,
it's growing to the west and parkland is vital to set aside now. He said this could
possibly become in the future a regional park, using it for extreme sports, mountain
climbing, mountain bike trails, indoor facility that might house a skate park, it might be —_
membership driven to provide amenities that west Little Rock children could use to help
generate funds for the city as well. He said if you think back to what New Yorkers did in
1860 when they had the foresight to set aside land for Central park, had they not done
that, Manhattan would be an entire concrete grid now, devoid of any trees. He said that
in looking the growth of the city, there is a need to consider what is going to happen fifty
years from now, a hundred years from now as the city grows. Ms. Stacy Hurst, co -chair
of the Parks and Recreation Vision Group and said they discussed the possible
acquisition at their meeting the night before, and said there were concerns about the
financing, but supportive of acquiring the land, if there was a good way to buy it. She
stated for this work group, acquiring open space is a priority and a park in west Little
Rock is a priority. This concluded the public hearing, and Mayor Dailey declared the
public hearing closed.
5. PUBLIC HEARING - To discuss the proposed issuance by the City of Little Rock,
Arkansas Residential Housing and Public Facilities Board ( "the issuer ") of not more than
$4,000,000 principal amount of Capitol Improvement Revenue Bonds (the "Bonds ") in
one or more series pursuant to the Arkansas Public Facilities Board Act, as amended, for
the purpose of acquiring land ( "the project" for lease to the City of Little Rock, Arkansas
for public park purposes.
Director Keck wanted to speak to comments made be Director's Pugh and Stewart,
saying he whole heartedly agreed that many of the inner -city park restrooms are not
acceptable, and went on to state that whether this issue goes forward or not, the
infrastructure and services that are available at existing parks should be good regardless
of the location. He said this should be done, and can be done for a number of reasons.
First it provides an opportunity to acquire and preserve some open space, even if it is
years before it can be developed. Director Keck commented on the statement one of the
speakers made earlier asking if kids would be bussed to it. He said kids are already
driving from far west Little Rock all the way to Riverdale to play soccer, or to Burns Park
in North Little Rock to play soccer or Junior Deputy or out to Rosedale Optimist in John
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Barrow because there is no places where they live that have these facilities. There are
kids on waiting lists to play softball because of lack of facilities. Director Keck stated
that he wanted to remind his colleagues is that in 1987 there was commitment and a vote
for a west Little Rock park that through a series of RFP's that was changed, that was
altered and was not awarded until 1992 and the west Little Rock Park from that bond
issue is on South University and will be the home of the first "T program ". Director
Keck sated the city has a way of doing this, as stated by Mr. Moore, with the new
flexibility we have from Amendment One. There is a stream of money available that
would allow the city to secure the debt to purchase this land. He stated that he thought
Mr. Lynch had presented something that is worthy of consideration and discussion, his
concern about the land for the library being mentioned at time is because of litigation,
and concerned that the Vision Little Rock Group is continuing their work, and may want
to add to the list, but thought it needs to be part of the city agenda. He said something he
thought the city could do if it is decided to put the issue before the voters to establish a
fund that is secured with Treasury notes that would be able to pay off these bonds, be
they through he Housing Facilities Board or be it thought the Revenue bonds that have
been done previously, for the presidential library land. He said what the park becomes
long term he could not say, because there is a lot of people that have an interest, the price
tag is unknown, and all he was saying is that this is a unique opportunity for the city to
secure a piece of land that's been made available, that may not be there six months to a
year from now. Director Keck stated there has been a resolution that has been offered as
an alternative but wanted the ordinance and the resolution that was presented initially,
and if it is decided not to move forward on those, then to at least go forward with the
resolution of intent tonight. Vice Mayor Wyrick stated that she did not feel this one
public hearing has been enough to engage the real citizens that are going to have pay for
this park. She stated she thought more dialog is needed with the people. She
complimented Mr. Lynch on bringing up the sales tax issue, but said she remembered last
year there was a west Little Rock park on the sales tax initiative and it failed. Had it been
separated out from some of the other issues, maybe it would have passed. She said she
felt that whatever funding mechanism is decided on; that she was not happy with the one
before the board tonight, and would be voting against that, but that whatever mechanism
is decided on, thought it needed to be clear and concise and not look like a shell game.
She felt that everyone needed to understand exactly how this is going to be paid for. She
agreed that there are parks that are not being taken care of properly. She stated that in the
event the financing is decided on for this park, she hoped that somehow consideration
would be given to the other needs of the parks in the city. Director Kelly said he
appreciated the opportunity to have this park and thought it was something the city needs,
and he was also very concerned about he mechanisms the city chooses to fund this. He
said he did not like the current proposal. He said he was concerned about passing a
resolution where the city agrees they want to buy something without any defined
mechanism for paying for it. Director Hinton said his comment was this, "A person
without vision will perrish." He said a lot of citizens say there is no vision here in the
city. He said this is a very open and closed case her, that the city what could be a very
good vision for the city. He thought the only thing most were struggling with is the
mechanism to pay it. He said it believed other areas should be looked into for financing.
He said the big question is the timetable, that the offer won't be available after a certain
time. He said he thought it was a good vision, and with a team effort could come up with
a way to finance the park. He said he would be supporting the issue. Director Lichty
stated the purchase would be paid for with bonds that would be paid off with revenue that
is going to be generated from doing additional financing of fleet vehicles for the city. It
becomes a policy issue in that is it beneficial for a city government to in fact use debt to
make those acquisitions that it otherwise could not afford? The point is that the city does
not have cash to pay for the land, so therefore those mechanisms that are available have
to be used to do these things that are in the best interest of the city. He said he believed
there had been adequate explanation as to exactly how this project would be financed, it
was not a particular shell game, it has been explained exactly what would happen. In the
absence of having that money in hand, he thought it would be irresponsible of the city to
not capture this opportunity that has been give, and to go ahead a make the acquisition
and then designate what some of the funds would be sued for. He said encouraged that
these issues be approved and acted on tonight. Director Cazort said he believed this was
a unique opportunity to address a twelve year old broken promise, the opportunity is
before the city is bigger and better than was ever dreamed possible for fulfilling that
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promise, it's more than what had been looked at in the past. He said he had no problems
with the current proposed funding system give the parameters of the deadline and the
options the city is facing. He said he would much rather write a check to Deltic Timber
tonight, but that is not feasibility. He stated he was comfortable that if the majority of the
board is not comfortable with the proposed funding mechanism that one would be found
shortly that the board is willing to go forward with and would anticipate the board will
unanimously decide to uphold and fulfill a twelve year old promise to the citizens of west
Little Rock. He stated he felt there is a need for the Parks Department to have an
acquisition fund. Mayor Dailey stated he appreciated the manner and attitude of most
everyone who had spoken at he board level and the comment level from the audience.
He stated that Mr. Lynch has made a suggestion that is worthwhile to pursue even if this
is moved forward on tonight. Director Kumpuris proposed that board members are
supportive but want the opportunity to look at any other financial opportunities, and
thought if the resolution of intent was passed, it was his understanding that taking that
option would give more to time to look at the other options, but would still have the time
to come back and if no alternative is found, if there are six people that want to go ahead
and use the Facilities Board, that it be done. Director Kumpuris stated if there was one
mistake he had made on the board, is that when the 18.6 million dollar infrastructure was
pushed as it was five years ago, it was the right thing to do because those things needed
done, but it was the wrong thing to do because it gave people the thought that the city
could take care of infrastructure needs without coming back to them for their help, and
part of the general revenues was taken and used for a specific bond issue, and thought
right now the city would have difficulty fulfilling all obligations if taking of general
revenue funds is continued. He urged the board to pass the resolution of intent, spend the
period of time looking at alternative funding mechanisms, and if none could be fund, to
use the Facilities Board, because he felt this was an opportunity that should not be passed
up. Director Kumpuris made a motion to adopt item M -1, the resolution of intent to enter
into a contract with Deltic Timber for acquisition of 617 acres for park property. Director
Cazort seconded the motion. Director Lichty asked if there was a finite period of time
that the purchase would be consummated if the resolution were adopted. Mid - February
was the date given by representatives of Deltic Timber, and anything beyond that date
would have to be revisited. The resolution was read and by voice vote, the resolution was
unanimously adopted. Items 6 and 7 were deferred to December 12, 2000, and Director
Kumpuris made a motion to set the date for another public hearing on the acquisition of
park land for December 12, 2000. Director Cazort seconded the motion, and with a
unanimous voice vote by the board members present, the public hearing was set for
December 12, 2000. Director Keck asked if the public hearing could be set for the early
part of the evening due to the fact that people with small children might want to
participate. Director Lichty asked if a time limit could be set also, because the December
12th agenda was very busy. Thirty minutes was decided as the time limit for the hearing.
Mr. Moore announced the public forum at Park View High School; it being the first
Vision Little Rock public forum.
6. ORDINANCE - Authorizing the execution and delivery of a lease agreement between
the City of Little Rock, Arkansas, as Lessor, and the City of Little Rock, Arkansas
Residential Housing and Public Facilities Board, as Lessee; prescribing other matters
relating thereto; and declaring an emergency. (Deferred to December 12, 2000)
7. RESOLUTION - Approving the issuance by the City of Little Rock, Arkansas
Residential Housing and Public Facilities Board of Capital Improvement Facilities
Revenue Bonds (Park System Project.) (Deferred to December 12, 2000)
A motion was made by Director Keck, seconded by Director Cazort to adjourn.
By unanimous voice vote of board members present the meeting adjourned at 7:10 P.M.
ATTEST:
APPROVED:
dI NM DAILEY, MAY R