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West Memphis council authorizes developer to seek financing for $250 million water‑park master plan
Summary
The council voted to authorize a developer to proceed under a 120‑day letter of intent to seek financing for a master development anchored by an indoor water park, a proposal the presenter said would create roughly 820 jobs and generate about $60 million in city tax revenue over its first decade.
The West Memphis City Council voted to authorize a developer to pursue financing under a letter of intent (LOI) for a master development anchored by an indoor water park.
The developer told the council the project, as currently defined, would cost about $250 million, create more than 820 local jobs and produce roughly $60 million in city tax revenue in the first 10 years. "This LOI is not a commitment to spend money. It is not a commitment to construct," the presenter said, adding the document opens a 120‑day period (with possible extension) for the developer to meet milestones and return to the city with financing documents.
Why it matters: The LOI is a procedural step that allows the developer to solicit lenders and lenders’ terms without obligating the city to construction. The presenter said the LOI includes caps on the city's exposure, milestones requiring check‑ins with the city, and a refund provision that would return prior city expenditures at financial close.
Council members pressed for clarity on infrastructure responsibilities and long‑term obligations. The presenter said the LOI itself does not obligate the city to perform work beyond the sums authorized for LOI milestones and that a later master development agreement would allocate responsibilities for utilities and road improvements. "The letter of intent ... is simply saying we are now on the clock," the presenter said, describing scheduled check‑ins and caps on city risk.
Funding and timing: The presenter said the city previously authorized $100,000 for project definition work and that the council was being asked to authorize an additional $300,000 to advance negotiations; the developer said those amounts are treated as deposits and would be refunded to the city at financial close. The presenter estimated a 30–36 month construction timeline from groundbreaking to opening for the water park component, depending on schedule and permitting.
Ballot measure link: The developer and several speakers said passage of a local ballot measure referred to as "Issue Three" would expand the city's economic development financing toolbox and make certain financing options easier to implement; the presenter said Issue Three would be beneficial but that the LOI process cannot wait until November.
Outcome: After discussion the council voted to move forward with the LOI authorization. The transcript does not record a roll‑call tally in the excerpt provided.
Next steps: The developer will return to the council with financing documents and a proposed master development agreement if milestones are met during the LOI period.
