Jonesboro approves $65M financing for new facility with Capital 1 loan

In a pivotal meeting on March 18, 2025, the Jonesboro Finance & Administration Council Committee unveiled a significant financial arrangement aimed at enhancing local services. The committee discussed a memorandum of understanding that formalizes the city's role in managing funds for the Advertising and Promotion (A&P) Commission, a move that promises to streamline operations and boost community investment.

The highlight of the meeting was the announcement that Capital 1, a sophisticated lender, has agreed to finance the entire $65 million project. This financing is crucial for the development of a new facility that aims to benefit the citizens of Jonesboro. The committee emphasized the importance of ensuring that the city feels fairly compensated for its contributions to the A&P Commission, which has been providing essential services for over 20 years.

Jerry Morgan, chair of the A&P Commission, noted the evolution of their operations, which have expanded from collecting hotel taxes from a handful of establishments to managing funds from numerous restaurants and hotels. He highlighted the need for formal compensation for the city’s financial management services, which have grown increasingly complex. Morgan pointed out that many other cities have dedicated accounting staff for similar functions, making Jonesboro's arrangement both efficient and cost-effective.

The committee's discussions underscored the dual control measures in place to ensure transparency and accountability in handling funds. The city’s finance department oversees all transactions, ensuring that checks are issued without direct handling of the funds by the A&P Commission.

As the city moves forward with this arrangement, the focus remains on maximizing community benefits and maintaining a robust financial framework. The anticipated outcomes include enhanced local services and a more structured approach to managing the A&P Commission's finances, setting a positive precedent for future projects in Jonesboro.