Central Business Improvement District (CBID) Fort Smith, Arkansas

The Fort Smith Central Business Improvement District (CBID) is a commission appointed by the mayor and board of directors. Each of the seven members is required by state statute to own property within the legal boundaries of the district.

The commission is regularly engaged in the following activities:

·         Meets regularly to discuss issues and concerns of the district, identifying needs for future growth in the district, and active in pursuing services and attractions to bring citizens and tourists to the downtown area

·         Reviews upcoming projects with developers and reviews design standards so that new construction is compatible and complementary to historic structures

·         Collaborating with the city and the chamber to market the riverfront to potential developers

·         Planning to improve the area in the vicinity of Miss Laura’s Social Club and Compass Park – as part of the original riverfront master plan from August 1997

·         Lobbying for state and federal funding to extend streetscape and sidewalks along Towson from Garrison Avenues to Dodson Street

History

Economic Development Improvement Districts were created in Arkansas by the General Assembly in 1973. These general provisions enabling the formation of local improvement districts were designed to combat the deterioration of core business districts as retail and commercial enterprises spread out into urban areas across the nation.

As stated in Arkansas Code Volume 11B Title 14, “It has been found and is declared by the General Assembly of the State of Arkansas that the deterioration of the central business districts of some cities and towns of the State is a threat to the property tax and revenue sources of such municipalities, and the elimination of urban blight and decay and the modification and the general improvement of such central business districts are urgent…”

In May 1976, following receipt of a petition signed by at least 2/3 of the property owners of the total tax assessed value of property within the designated boundary, the City of Fort Smith created the local Central Business Improvement District.

By ordinance, the purpose of this commission is to bring new investors to the district and to reduce blight. The commission can buy, sell, loan or borrow money, own property, lease property, assess property owners within the boundary or use imminent domain as a mechanism to achieve the common goal of increasing the property values within the boundary and encourage public improvements within the legal boundaries of the district.

In creating the CBID, the mayor and board of directors appointed five downtown property owners to serve on the commission. Almost immediately, the commission put together a plan to obtain vacant property in the 600 block of Garrison Avenue and to construct the State of Arkansas office building.

By November 1978, the CBID entered into a lease / purchase agreement with the State of Arkansas Building Authority. Through a 30 year lease, monies collected from the state were used by the CBID to pay off the note held by the CBID. Excess monthly payments from the state were placed into an account, accruing interest. This revenue stream has now stopped as the State Building Authority has paid off the note and now owns the building. Additionally, the CBID owns a building at 701 Garrison Avenue. This, too, has been leased and managed by the district. Rental fees are collected and are reflected in the monthly financial statements. The CBID can use these collected monies for the creation or support of public improvement projects within the boundary. They can also encourage public donations to be held by the CBID for the purpose of public improvements within the district. At no time has the City of Fort Smith sent monies to the CBID. The CBID has sent monies to the City in support of Downtown projects.

The Arkansas General Assembly has passed three updates to the existing statute – the latest of which occurred in 2007, and the City of Fort Smith Board of Directors has increased the boundaries of the district in recent years and added two commissioners, resulting in a 7-member body of property owners.

Major Accomplishments  

·         Funding & construction of State Office Building

·         Providing steady leadership following the 1996 tornado

·         In partnership with the City, hired a director to operate and facilitate the needs of the district

·         Lobbying Arkansas legislature for creation of State Historic Tax Credits as an incentive for developers to restore dilapidated historic structures.

·         Marketing downtown Fort Smith

·         Developing and updating design guidelines

·         Facilitating the formation of an investment group to construct West End Lofts

·         Leading the effort to rename Riverfront Drive, in order to assist in marketing of riverfront property

·         Facilitating a public/private partnership to build the parking lot at North 2nd and North B Streets

·         Financial support of the Park at West End

  The seven current commissioners of the CBID are:

Richard Griffin, Chairman

Sam T Sicard, Secretary –Treasurer

Phil White

Bill Hanna

Jeff Pryor

Bennie Westphal

Rodney Ghan

City Staff Representative, Jayne Hughes

Downtown Development Coordinator

623 Garrison

479-784-1001