Highlights of the Fort Smith Board of Directors Meeting 2/3/26

At the Fort Smith Board of Directors meeting held 2-3-26, the Board voted unanimously in favor of a zoning change for 7308, 7310, 7326, and 7320 Rogers and 3106 and 3110 South 74th (the former Stonewood Village shopping center property) to allow for development of The Forum at Rogers, consisting of mixed use retail, service, and entertainment businesses and a hotel including a proposed increased height allowance for the hotel to allow it to be 4 stories tall.

Kim Fodge spoke in support of the zoning change but voiced her concerns about traffic on 74th street in general.

Director Martin called the planned development an “awesome project” and “very cool.”

The Board voted unanimously without discussion in favor of a zoning change for 1520, 1524, and 1530 North Greenwood Avenue and 1525 and 1531 May Avenue to allow for development of multiple parcels into two character areas. Area A along Greenwood will have a bridal shop, auto parts sales, auto sales, and indoor tire sales. Area B along May Avenue will have auto detailing, auto paint and body, auto repair, and auto glass and muffler shops.

The Board voted unanimously to contract with Western Millwright for construction on the Alleyway Rehabilitation project to improve just over 2 miles of alleyways with lighting, fencing, and permeable pavement to turn them into safer more inviting pedestrian/bicycle paths for $2,612,654 and McClelland Consulting Engineers for construction administration and engineering services on the project for $240,240. The bid from Western Millwright is significantly less than the engineering estimate of $3,966,819. The project is fully funded through a federal Climate Pollution Reduction Grant.

Andy Posterick, Jo Elsken, and Shane McKinney spoke in support of the alleyway project.

Director Rego expressed his support for the project.

Director George Catsavis asked who maintains the alleys. Citizen Services Director Robertson said that the City maintains the alleys. Acting City Administrator Dingman clarified that the City maintains the alleys except for vegetation which is maintained by the property owners. Director George Catsavis asked if there are any strings attached to the federal grant on the project. Robertson answered that there are not.

Director Kemp voiced his support especially for the lighting portion of the project and suggested that there be more projects for added and improved lighting all around the City in the future.

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

Downtown Business Association members Stephanie Nugent, Jessie Burrows, and Mila Masur spoke in favor of the renewal and praised the efforts of Main Street Fort Smith.

CBID Commissioner Phil White also spoke in support of the renewal and praised the efforts of Main Street Fort Smith.

Ken Lyon spoke in opposition to the renewal mentioning the lack of resources for people interested in starting things downtown and that the grant programs through Main Street Fort Smith work via reimbursement (requiring money up front) and that the Main Street Fort Smith program is “misaligned” with the Propelling Downtown Forward plan.

Eric Weidman asked if there was potentially a lower price or a way that it could be done cheaper. City Administrator Dingman said that it was a continuation of the price for the last 3 years.

Dan Williams spoke in support of the renewal and praised the presentation made by Main Street Fort Smith during the 1-27-26 study session.

Director Rego said that “downtown would be worse off without a fully funded Main Street Fort Smith.”

Director George Catsavis asked about the financial benefit of the program. Amanda Hager with Main Street Fort Smith answered that it is hard to quantify but that it does bring in foot traffic. Director George Catsavis asked if Main Street Fort Smith helps businesses with compliance on City regulations and requirements. Hager said that they help as a “liaison” and help businesses get in touch with the right person to move forward. Director George Catsavis asked if the organization gets donations from other sources. Hager said that they do and that they are usually tied to a specific program like for the required local match for the Levitt Amp concert grant or for funding the Cocoa Crawl or Invest Fort Smith summit rather than just for general ongoing funding needs. Director George Catsavis mentioned his desire to see Main Street Fort Smith “look for other revenue sources” for the future. Hager agreed with the importance of having diversified funding sources. Phil White and Hager mentioned that the CBID has just approved a services contract with Main Street Fort Smith for $26,000 per year.

Mayor McGill praised Main Street Fort Smith.

Director Martin spoke about the importance of downtown.

The Board voted unanimously in favor of the renewal, except for Director Christina Catsavis who abstained from voting (without explanation for her abstention).

The Board voted unanimously to contract with Forvis Mazars to perform the Agreed Upon Procedures (AUP) on the 2025 operations of Parrot Island Water Park. The audit 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 and the 1-27-26 meeting. The audit will cost $30,000-$40,000.

Kim Fodge spoke in support of the review of the books and suggested that it also include 2023 and 2024. She voiced concerns about unpaid invoices to Clarity Pools and Burton Pool and Spa from those years. She mentioned $369,000 in unpaid invoices for 2025 and a 2024 P&L showing a loss of $298,000. She also suggested that the City be provided monthly reports regarding the water park.

Dan Williams spoke and expressed agreement with Fodge for adding more years to the audit and suggested that the Board could vote to add the additional years if discrepancies are found while looking into 2025.

Director George Catsavis recalling the Fort Smith Animal Haven audit that became complicated asked if there was any conflict of interest with Forvis Mazars. Strange said that there is not, that they are independent and “will give us actual true answers.” Of adding 2024 to the audit, she said that the Agreed Upon Procedures already include things that will cover some of the things that there is interest in from 2024 including accounts payable procedures and unpaid invoices. She said that “This is a starting point” and that there is “every chance” to go back and look at 2024 further if necessary.

Director Martin said of adding additional years that he is “good with if something turns up expanding upon it.”

Director Settle voiced his support for an audit. He also said that American Resort Management (ARM) has safety as their “#1 priority.” He said that the City and County have told ARM to keep the prices of concession stand food down. He said that many of the staff handling cash payments at the park are high school and college “kids.” Of these young employees, he said “Are they perfect? No.” Settle said that ARM has asked to stop accepting cash and that the City and County have told them no. He mentioned that the City Administrator does receive monthly financial reports on the park via email and sends them to the Board.

Director Kemp asked if the Agreed Upon Procedures would show if City Administration instructed ARM to pay some invoices late. Strange said that the management agreement with ARM says that payments are to be paid by ARM and are “not the responsibility” of City Administration but if there were a situation to exist there it “could be something that gets uncovered.” Director Kemp expressed his desire for the City to be a “partner third parties want to work with” and for audits to not be “weaponized.”

Director Rego mentioned that the contract with ARM runs through March and asked about the proposals received for the management contract after March. Dingman said that there are 5 proposals submitted for consideration including the one from ARM.

Director Christina Catsavis said that concession prices at the park are “more than reasonable to make a decent profit” and read prices off the menu including a hamburger for $8.25 (without French fries), a hot dog for $4.00, and a $22 pizza. She said “If you can’t make money on a Pepsi, you’re doing something wrong.” She said that the prices are similar to the prices at George’s Restaurant. She mentioned that in the past at a concession stand business she has hired young people and still turned a profit. Director George Catsavis called the concession food prices “premium prices.” Director Settle said that the concession food prices are “really low” compared to other water parks in other places.

The Board voted unanimously to apply for a grant from The Boring Company to build a 1 mile long 12 ft wide tunnel to cross the Arkansas River as a part of the Lake Fort Smith water transmission line project. The “Tunnel Vision Challenge” grant is for a project involving a mile long 12 ft wide tunnel and the award is The Boring Company building the winning tunnel for free.

Director Settle called the proposed project an “inventive way to try to get us boring under the river.” He mentioned the possible advantage of being the only or one of few applicants whose project includes a water line.

Mayor McGill expressed his hope that Fort Smith’s story would positively influence the grant decision.

The Board voted unanimously without discussion to purchase replacement garbage trucks including an ACX64 side loading truck for $555,855.92, two Battle Motors Raider LET2-CNG rear loading trucks for $416,105.10 each, and an ACX64 front loading truck for $554,130.46.

The Board voted unanimously to purchase 5 replacement staff vehicles for the Fire Department including three 4x4 Tahoes and two Silverado Crew Cabs from Superior Auto Group for a total of $240,900.06. The purchase will allow the Fire Department to start using lighter vehicles to respond to medical incidents, reducing wear and tear on the far more expensive ladder fire trucks.

During the Officials Forum section of the meeting, Mayor McGill mentioned that recently the 184th Attack Squadron at Ebbing Air Base was awarded General Atomics RPA Squadron of the Year and that Colonel Esparza was named the new commander of the 188th.

Director Settle motioned to add discussion about requiring audits for all third parties doing business with the City (including service contract and agreement holders like Oakview Group, Animal Haven, Main Street Fort Smith, Area Agency on Aging, and Fort Smith Museum of History)to a future study session. He also motioned to add discussion of a review of financial policies and 15 years worth of fund balances and reserve percentages to a future study session. Both items will be added to future study session agendas.

Director George Catsavis asked if a lien could be put on a property for non-payment of utilities. City Attorney Rowe said that he was “not aware of that process.” City Clerk Gard said that the it is not something the City currently does, but that she believes that it is something the City does have the ability to do. Director Catsavis voiced his concerns about children with no water in their homes due to shut offs for non-payment. He asked “What can we do to stop this?” Director Settle reminded of Project Concern, the City’s discount program for utilities for customers with incomes of up to 200% of the federal poverty line. Director George Catsavis mentioned that there are around 800 water shut offs per month. Of shut offs, he said it is a “horrible thing for a kid to have to go through that.” Mayor McGill voiced his support for looking into the profile of those being shut off.

Director Kemp updated on the national search for candidates to hire for City Administrator. He said that the search firm the City originally intended to use for the search has chosen to not participate after all because they “prefer to work in confidentiality” and the City’s search is too public facing. Director Kemp has received communications from other firms that would like to be considered and will bring those options for the Board to decide on at the February 17th meeting.

Acting City Administrator Dingman updated on the modification document for the consent decree saying that Attorney Calamita has said that the final version has been completed at the DoJ and will be soon shared with the ADEQ and he anticipates it coming to the Board for review soon. Then if approved by the Board, it will go back to the DoJ to and to the federal court. The process should probably be complete in June or July.