Commission: Convention center owners to be paid

The owners of Arkansas Convention Center will get the payment they demanded last week from the Texarkana, Ark., Advertising and Promotion Commission, it voted Thursday.

During a special meeting at City Hall, the commission voted to pay more than $100,000 in incentives due James Naples, the center's owner, and to continue future scheduled payments according to contract.

The vote comes after a Dec. 1 letter from Naples' legal counsel threatening a lawsuit if the commission did not make payment within 10 days. The letter was sent to each of the commission's members from Texarkana lawyer Kyle Davis, who represents Naples and New Boston Investments LLC, the company created to manage the convention center and hotel.

The commission had not paid before now only because it had not formally voted to do so, city Finance Director TyRhonda Henderson said.

At issue is the annual payment of $150,000 in financial incentives negotiated between the center's original

owner, Dr. Hiren Patel, and the commission. The 15-year agreement, which began in 2011, includes a rebate of any city hotel and restaurant taxes the convention center owes over the term of the deal.

When Naples purchased the center in April, bankruptcy court Judge Brenda Rhodes denied a transfer of the benefit. However, she did rule that the commission would continue to uphold another agreement of $84,000 in annual incentive payments to the center. That agreement runs from 2014 to 2020. Rhodes reversed her earlier ruling in September, and the commission did not file an appeal before the deadline for doing so passed.

The vote came after a nearly two-hour executive session during which the commission discussed its two vacancies and its legal counsel, attorney Josh Potter. It took no action on either issue.

The commission distributes revenues from the Arkansas side's hotel and restaurant taxes to support the city's tourism and hospitality industries.

Gazette reporter Lynn LaRowe contributed to this report.