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West Memphis council approves two industrial development bonds and authorizes agreement with Groot LLC
Summary
The West Memphis City Council on May 15 approved two taxable industrial development revenue bond ordinances and a resolution authorizing the mayor to sign a development and supply agreement with Groot LLC, with council members noting the deal’s potential economic impact.
The West Memphis City Council on May 15 approved two ordinances authorizing the issuance of taxable industrial development revenue bonds — series 2025A and 2025B — and passed a related resolution authorizing the mayor and general manager to sign a development and supply agreement with Groot LLC.
Gordon Wilbur, who identified himself as counsel on the matter, explained the transaction under Arkansas’ Act 9 of 1960, saying the statutory procedure places title with a governmental entity so the project can receive a payment-in-lieu-of-taxes arrangement. Wilbur said the structure uses lease payments to secure bonds and that "there won't be a sales tax increase" and "there is no obligation of the city." He also cited a tax-abatement structure, saying the transaction allows a roughly 65% property tax abatement.
The council voted unanimously on both measures. The ordinance for series 2025A passed and was recorded as Ordinance No. 2702; the ordinance for series 2025B passed and was recorded as Ordinance No. 2703. The resolution authorizing the mayor to sign the development and supply agreement with Groot LLC passed as Resolution No. 2322.
Why it matters: Council members and the mayor described the deal as a major economic investment for West Memphis, forecasting long-term revenue and new jobs tied to the development. Mayor McClendon said the project represents one of the largest investments the city has seen under the current administration and encouraged the public to watch a planned announcement and site activity.
What happens next: With the ordinances and the resolution approved, the mayor and city staff will proceed to execute the bond and development documents and finalize the agreement with Groot LLC, as authorized. The council did not record additional conditions on the measures at the meeting.
Provenance: Transcript discussion began with the ordinance readings at SEG 070 and Wilbur’s explanation at SEG 162 and continued through the votes recorded at SEG 216–233 (ordinance 2702) and SEG 322–332 (ordinance 2703) and the resolution vote at SEG 235–239.
