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Subcommittee defers USDA-backed Maumelle watershed land purchase after Perry County objections
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Summary
After extended questioning of Central Arkansas Water and PotlatchDeltic, the peer subcommittee voted to defer a $7 million USDA-backed forest legacy purchase and asked the agency to resubmit the request without the Perry County portion; members cited concerns about outreach, local tax impacts and deed restrictions tied to federal funds.
The Peer Subcommittee of the Legislative Council voted to defer action on a Department of Agriculture–linked Forest Legacy purchase request filed by Central Arkansas Water (CAW) that would use a $7,000,000 federal award to acquire land in the Maumelle watershed. Senator Davis moved to defer the item to the full legislative council and asked the agency to consider removing acreage located in Perry County; the motion carried by voice vote.
The H2 item drew prolonged questioning from multiple legislators about local outreach and fiscal impacts. Representative Mary Bentley, representing the area, said the county has already lost tax revenue from a previous acquisition and warned constituents that Perry County stands to lose potential property-tax income. "My county is being hurt immensely," Bentley said, urging caution and asking that Perry County acreage be removed from the request.
Brian Rupar, watershed protection manager for Central Arkansas Water, described the purchase as an investment in drinking-water protection and public access. He said CAW did not model potential full-build-out tax revenues for the lands purchased in 2024 and noted that an earlier 2,000-acre acquisition carried an estimated annual tax liability loss of about $4,150 on the closing statement. Rupar explained the federal award structure and deed restrictions: federal funds are recorded with notice on title and would require repayment of the federal share if the property were later sold outside program rules.
PotlatchDeltic representatives and the state forester testified that the project targets stream corridors and headwater parcels in order to limit long-term sedimentation and nutrient loading into Lake Maumelle, which supplies drinking water to approximately 500,000 Arkansans. Witnesses described recreational and conservation benefits, and CAW noted that the two-parcel project totals about 3,471 acres with the second parcel pending national-level approval.
Representative Kevin Eubanks, Senator Irvin and others asked about the distribution of acreage between Pulaski and Perry counties (witnesses said about 200 acres are in Perry County and the remainder lie elsewhere) and about the consequences of removing acreage for timeline and federal approval. The Department of Agriculture staff cautioned that modifying the request could affect national-level approvals and that returned funds may not be recoverable if the state declines them.
Given the local objections and the potential for redesign, the committee deferred H2 to the full legislative council and asked the agency to consider resubmitting the request limited to Pulaski County acreage.
Next steps: the Department of Agriculture and Central Arkansas Water will be asked to consider a revised submission and to report back to the legislative council.
