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Mayor says judge's ruling limits city's exposure over former Citizens Bank site; council urged to consider redevelopment options
Summary
At the April 1 Jonesboro City Council meeting, council members reported a judicial ruling that a private party lacks ownership interest in the former Citizens Bank building, reducing the city's risk of an inverse-condemnation claim; leaders urged discussion of future development and potential revenue sources for downtown redevelopment.
City officials told the Jonesboro City Council on April 1, 2025, that a recent judicial ruling reduces the city's exposure to a potential inverse-condemnation claim related to the former Citizens Bank building downtown.
A council member summarized the court ruling and said the judge found that the private party asserting interest in the building did not have an ownership interest the court recognized; as a result, most claims against that private party were dismissed. The council member and the mayor said the only remaining claim in the pending litigation may be for back rent. The city’s outside counsel has filed pleadings related to whether the city may be added as a defendant; the council member reported that the city could face an appeal but that the recent ruling improved the city's legal position. The meeting transcript does not include the judge’s full name or a written order; council members described the ruling verbally during their reports.
Mayor remarks at the meeting emphasized that demolition and cleanup work at the former Citizens Bank site is substantially complete but that additional site work remains, including backfilling, street and sidewalk repairs, street-light replacement, and topsoil and landscaping work. The mayor thanked council members and staff for cleanup efforts and said the council should consider long-term redevelopment options for that property.
On funding, the mayor listed local revenue sources that could support downtown redevelopment if an appropriate commercial project is approved, citing hotel tax, liquor-by-the-drink tax, prepared-food tax and sales tax as revenue streams that could contribute to recouping redevelopment costs over time if a business meeting those criteria locates at the site. The mayor said business owners from downtown intend to speak at an upcoming council meeting to thank the city for cleanup and to present redevelopment ideas.
Council members also noted an upcoming Ward 6 town-hall meeting in mid-April to engage residents; the meeting date was given as April 16 or April 17 during remarks and was identified to be held at Allen Park Community Center.
The remarks provide a status update rather than a formal council action. No vote or formal directive to staff regarding redevelopment strategy or expenditures appears in the meeting record; council members urged further discussion and public input at future meetings.
