Highlights of the Fort Smith Board of Directors Meeting 1/27/26

At the Fort Smith Board of Directors study session meeting held 1-27-26 with Director Good absent, the Board discussed renewing the services agreement with Main Street Fort Smith for downtown development services for $12,500 per month (the same amount as 2025). This issue was tabled at the 1-20-26 meeting. The Arkansas Main Street statewide grant program requires that the City must contract with an independent non-profit to participate in the program.

Amanda Hager with Main Street Fort Smith presented highlights of the organization’s 2025 annual report. Activities in the report include the 7th Street Corridor, the 50/50 matching mini-grant program for businesses, research and partnership development for a Pop Up Business Program for vacant spaces set to launch this spring, the Levitt Amp free concert series, Invest Fort Smith economic development summit, updated downtown guides, and conducting a community survey. $15.1 million was invested in downtown development in 2025, led by large investments in the Bricktown Brewery rebuilding and renovations at 723 Garrison and 524 Garrison. 19 new businesses opened up and 4 businesses closed. $1.8 million in economic impact was seen from major events mostly from the Steel Horse Rally. The matching mini-grant program for exterior building improvements will award a total of $16,000 to 8 different projects. Next year there are also plans for a window cling program for vacant store fronts.

Director Martin asked about the vacancies. Hager said that some buildings are ready to be used immediately by new tenants but some are further away from ready. Director Martin expressed concerns about vacant buildings and some with owners “just sitting on them.” He also asked about the return on investment from the City’s funding for Main Street Fort Smith and asked how much the organization brought in in grants in 2025. Hager said that they received $127,500 in grants and $20,000 in sponsorships. Director Martin said “I think that’s good.” He asked what it would take to support residential growth downtown. Hager answered mixed different types of housing. Director Martin requested the Board be provided data about how many people live and work downtown. He asked about how to attract people that are hesitant to visit downtown. Hager said that it’s best to attract them downtown for events first, and they will notice positive things about downtown and be more likely to visit again in the future.

Director Martin voiced concerns about homelessness downtown. Hager said that the Downtown Ambassador program and the dedicated police officer have made improvements especially in the reduction of trash left by homeless individuals. Director Martin mentioned that downtown is the most heavily policed neighborhood in the whole city. He expressed his desire to revisit an ordinance to help make it easier for the police to enforce things related to homelessness. Of homelessness downtown, he said “We’re not fixing it.” and that the City is “never gonna see true activation downtown” until homelessness is addressed. Director Christina Catsavis asked Director Martin if he is suggesting a larger police presence downtown. Director Martin answered “I don’t know.” but said that he is “open to suggestions” regarding solutions. Director Settle suggested seeing what other comparable cities are doing to address their similar problems.

Director Settle asked how many AirBnBs are downtown. Hager estimated about 20. Director Christina Catsavis mentioned that there are 12-15 currently showing on the AirBnB website. Director Settle voiced his view that too many downtown businesses are closed during when parades are going on. He also suggested that the funding for the Main Street Fort Smith contract should come from the portion of the County sales tax that is allocated for downtown instead of coming from the Administration budget. Acting City Administrator Dingman said that the county sales tax for downtown is currently used for the Parks Department’s downtown and riverfront efforts. Director Martin agreed with Director Settle about the money coming from the sales tax.

Director Kemp asked about a public bathroom downtown. Hager said that that has come up in conversation in the past and that she sees an “absolute benefit” to having a public bathroom.

Corporal Solis, the dedicated downtown police officer, mentioned that there have been improvements made by having the downtown ambassadors and the police cameras. He said that homelessness is the biggest concern he hears from downtown business owners and residents. He said “Vagrancy is a big issue.”

Director Kemp suggested that the Board consider a homeless ordinance again. He also suggested that a non-profit working with the homeless should do street outreach to try to connect homeless people with resources available to help them.

Mayor McGill said that downtown is “alive and thriving starting on Thursdays.” To Main Street Fort Smith he said “Keep up the good work.”

Director Christina Catsavis praised the work Main Street Fort Smith has done on family-friendly events.

The renewal of the service contract will be added to next week’s meeting agenda. Discussion of a homelessness ordinance will be added to a study session agenda some time in the first quarter of this year.

The Board reviewed the Request for Qualifications for program management services for the consent decree.

Director Martin said “We should expect cost savings” from the management services. Engineering Director Mittge said “I am willing to ask for the moon and expect the international space station.”

Director Settle suggested that the management company could receive a percentage of costs saved to help incentivize value engineering. Mittge said “I love the idea” but questioned how it would work to gauge what the cost would have been and how it would work legally.

Director Kemp expressed his hope that big gaps between engineering estimates and bids seen on some projects in the past would be prevented by the program management services. He asked where the Request for Qualifications would be posted. Mittge said that it would be posted in the newspaper of record as legally required, but that his department would also reach out by email to national firms, post it on the City website, and advertise to relevant professional organizations. Mittge said that the program would likely need the management company to provide one full-time person to work in-person in Fort Smith every day but that would not necessarily be required.

Director Christina Catsavis asked if the Procurement Department could go out and procure a firm for this task. Dingman said that they will be involved along with the Engineering Department.

The Board discussed the Agreed Upon Procedures (AUP) engagement to be performed by a third-party CPA firm(Forvis) on the 2025 operations of Parrot Island Water Park. The firm will look into things including the cash balances, cash receipts, cash disbursements, financial analytics, invoices received but not paid by year end, cash transfers, and timeliness of reporting for the park, concession item profitability, and the compensation for the management of the park. This issue was discussed at the 1-13-26 meeting.

Director of Internal Audit Strange said that the AUP allows targeted procedures that can ask questions that go beyond what would be the scope of a financial statement audit. The procedures were crafted based on input from the Audit Committee, the Board of Directors, and Forvis (the external audit firm). She said that they would provide a “peek behind the curtain” of financial reporting by American Resort Management and an “insight into management practices.”

Director Martin asked about including 2023 and 2024 in the AUP. Strange said that the management company is likely “doing the same types of things year after year.” She said of the park going from profitable in prior years to a loss in 2025 that the “change in trends was a bit of a red flag for me.” She said that adding more years would increase the cost. Director Martin mentioned that the cost of the AUP is estimated to be $30,000-$40,000. Strange confirmed and said that the range depends on how quickly they can get the information and what errors are found that have to be included.

Director George Catsavis expressed concerns about cash taken in at the concession stand not being properly accounted for. Director Christina Catsavis said that comparing the supplies purchased to the sales would potentially help expose irregularities on that. Director Settle said that there are probably less cash sales than Director George Catsavis would expect due to many patrons using credit cards at the concession stand. Director George Catsavis mentioned that food cost for concessions is typically 30% and a higher food cost might show that something is wrong. Strange said that the AUP would include profitability per item. Director George Catsavis asked if the auditors could subpoena information. Strange answered that they cannot, but that from a “reputational standpoint” ARM would likely be willing to provide the information voluntarily. Director George Catsavis asked how long it would take for the AUP. Strange answered that it would be conducted at the beginning of April in conjunction with Forvis’s audit of the City but that if the information comes in sooner they would start working on it sooner.

Director Christina Catsavis suggested that 2023 and 2024 be included also in the AUP. She requested that the types of insurance and the premiums and whether those are in line with what is typically expected be included in the AUP.

Director Kemp expressed concerns about unpaid invoices to vendors including a chemical company and an electrician.

The AUP will be added to next week’s meeting agenda.

The Board discussed the procedures for the City to request the Arkansas Attorney General investigate representations about the cost to install the additional water slides at Parrot Island. In July of 2024, American Resort Management, the firm contracted to manage the water park, told the City via email that the slides would cost $4,250,000 total for the purchase and installation but current actual costs will be an estimated total $6,234,238. This issue was discussed at the 1-20-26 meeting.

Director George Catsavis asked about who can refer matters to the Attorney General and if the City has to do it or individuals can do it. City Attorney Rowe said that individuals can, that there is a consumer complaint department and also that there is a Public Integrity Division. Investigations by the prosecutors offices or a State Audit can result in making a referral. The Board can pass a resolution. Then the Attorney General will decide if they have jurisdiction and whether to take up the matter.

Director Christina Catsavis said that the Attorney General wants to see something official like a resolution from the Board. Rowe said that a formal resolution “shows the City’s intent on a matter.”

Director Martin wondered out loud whether it is an issue between the City and ARM “Or did we just make a bad decision?” He wondered if there is proof that ARM provided misleading info or was negligent or prioritized their own interests over the City’s. Rowe said that it was potentially a dispute between two private parties to litigate. It would involve whether ARM knew that the stated costs were false when they stated them and that they knew the City would rely on them and the City incurred losses based on the false statements. He mentioned that in the email from ARM to the City about the costs that it says “estimate” a couple of times.

Director Christina Catsavis said “They lied to us.” She voiced her suspicion that ARM probably made a commission on the slide purchase even though Geffken said that they didn’t. She also said that there should have been a formal agreement with ARM as a broker for the purchase. Rowe mentioned that there is no agreement to point to for a case of violation of an agreement. Director Christina Catsavis mentioned that a representative from ARM said that the slides would arrive palletized in containers and would be stored in containers and that they were not.

Director Martin mentioned the previous expansions, the Flow Rider and the green slide, and asked if a different more formal process was used when ARM was involved in both of those. Dingman said that there was no written agreement “We just did it.”

Director Kemp said “I don’t see merit yet to send a letter to the Attorney General.” He said that it is “too early to be in this conversation” and that the City should do due diligence first.

Director Martin said “I don’t know that we’re at the AG level yet.” and suggested that the Board “marinate on it” for a while.