Board tables library letter of intent for Majestic site, asks for clearer purchase terms

The Hot Springs City Board of Directors voted June 16 to table consideration of a non-binding letter of intent from the Garland County Library to explore locating a new main library at the former Majestic Hotel property.

City Attorney Brian Albbright read the resolution, R-26-112, which the library submitted as a mutual, non-binding expression of intent contingent on library bond funding. Library lead Adam Webb told the board the ballot language for the library’s millage proposal has been drafted and that the library would "put an offer in with the city" if voters approve the measure.

Directors pressed the library and city staff for clarity about what "partnership" would mean in practice. Several directors said the board’s primary objective has been to recoup the city’s investment in the Majestic site rather than to enter a long-term lease. Director Karen Garcia said she could not support the LOI “as it is now” without language guaranteeing the city would recoup its costs, while Director Steve Trusty said he had always assumed the city intended to sell the property and recover its outlays.

City staff provided a working estimate of the city’s unrecovered investment (Mr. Burl cited a figure near $2.35 million), and directors asked the library to return with a clearer proposal that either specified a minimum purchase amount or outlined how the parties would negotiate price and development conditions. Adam Webb said available capital for construction if the 0.9-mill measure passes would be about $31 million and that the library has some capital reserves and ongoing fundraising.

After discussion, Director Aaron Holiday moved to table the resolution so library officials and city staff could draft revised language reflecting a minimum purchase price or comparable safeguards; Director Trusty seconded. The motion to table passed by roll call.

The board instructed staff and library representatives to return to the July meeting with a clarified option that addresses the minimum payment to the city and the degree of post-sale development control the city would require. The library’s petition deadline for getting the measure before voters was discussed as coming in August, and multiple directors emphasized the board wanted a clear term sheet before the board signaled formal city support for placing the library on the Majestic site.

Next steps: the LOI remains tabled and will return to the board with revised language intended to spell out the city’s minimum compensation and negotiation process before any final agreement or sale.