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North Little Rock council approves lease and option to sell downtown site amid objections over price and process
Summary
After extended debate and a failed motion to table, the council approved R2622 authorizing a lease with option to purchase 200 E. Washington to Cal Macon. Critics said the city is selling a property it bought two years ago for $1.5 million for roughly $200,000; supporters emphasized downtown development and parking arrangements.
The North Little Rock City Council voted to approve a lease and option-to-purchase agreement with Cal Macon for property at 200 East Washington after more than an hour of debate over process and price.
Councilmember Hamilton pressed for public explanation of the deal, saying the city had acquired the parcel about two years earlier for $1,500,000 and the proposed purchase price in the option agreement was $200,000. "We bought this property 2 years ago for $1,500,000 and now we're selling it ... for $200,000," Hamilton said during Wednesday—19s meeting, adding he wanted to see a broader parking and redevelopment plan before approving the transaction.
Councilmember Robinson, whose ward includes the site, asked several times to hold the item for additional consideration and to allow an alternative bid to be evaluated. "I'm trying to ensure that our process is fair and just for all of our business owners," Robinson said, urging more transparency in how the mayor—19s office and staff negotiate redevelopment deals in wards.
Mayor/Chair and city staff described the arrangement as a phased development step. According to the documents and staff remarks, the agreement includes a monthly lease payment of $1,000 until an option is exercised, a nominal option fee ($100 in the agreement), and an option-to-purchase payment of $200,000 when the buyer exercises the option. The agreement also grants the buyer limited use of a nearby parking area for event-center dates until a hotel on the site opens. Cal Macon estimated parking lot improvements would cost about $110,000 to $150,000 and said the hotel and associated development would generate significant future sales-tax revenue for the city. "It's roughly about a 120 to a $150,000 [outlay]," Macon told the council when describing planned parking improvements.
A motion to table the measure failed on a procedural vote. The final recorded roll-call on adoption showed Councilmember Hamilton voting no and all other listed members voting yes; the motion carried.
Councilmembers who opposed tabling and those who voted to adopt stressed the potential for downtown revitalization and parking cooperation between the developer and the event center. Opponents said the council lacked evidence the property had been marketed or that other interested parties were given a fair opportunity before this specific agreement was favored.
The resolution approved the mayor and city clerk to execute the lease and option documents. The council did not attach additional conditions requiring the property be re-advertised or placed on the open market before sale. Next steps will be execution of the contract documents and administration of the lease terms by city staff.
