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Damage claim over Spring Street flooding tabled after claimants say cleanup, receipts still pending
Summary
Owners of Grotto LLC presented a property‑damage claim tied to stormwater intrusion after city meter/manhole work; council heard estimates and insurer interactions but voted to table the matter to March 23 so claimants can provide full receipts and staff (city inspector) can attend.
Eureka Springs — City Council on March 9 heard a property‑damage claim from operators of Grotto LLC (the Grotto) alleging stormwater infiltration following city work in Spring Street and voted to table the matter to the March 23 meeting so claimants and staff can provide additional documentation.
City attorney Heather Hones summarized the claim and told council the claimant seeks roughly $60,000 in damages and lost profits. Claimants Rodney and Autumn Spencer described water infiltration that saturated lower floors and damaged finishes and equipment, and said they had been directed to file insurance claims as part of earlier mitigation discussions.
"If we closed down for a period of time ... it would cost us $170,000 to close," one claimant said, describing business‑loss estimates and the cost of repairs. The claimants provided contractor quotes and sales reports but council members said the packet lacked receipts and substantive backup to evaluate a settlement tonight.
Public Works Director Simon Riley explained the sequence: crews had exposed a meter/manhole for replacement; a storm the following morning allowed surface water to enter the excavation and the building’s sump pumps failed. Council probed whether the event was stormwater vs. a water‑main leak and whether prior communications and mitigation steps had been recorded.
Legal counsel and several council members noted statutory limitations on municipal tort liability and stressed that any discretionary payment by the city is not an admission of liability. Councilmember Rochelle and others pressed for detailed receipts and insurer correspondence before authorizing payment.
The council voted to table the matter to the March 23 meeting and requested the claimant submit receipts, contractor invoices, insurance correspondence, and for the city to have the city inspector attend to provide inspection notes and any prior communications.
What happens next: claimants and city staff will exchange documentation before the March 23 hearing; the council will revisit the claim at that meeting with the additional evidence.
