Board to vote on $1.8M deal

Construction contract would renovate building, create activity center

TEXARKANA, Ark. — During a meeting Monday, the city Board of Directors will vote on authorization for a construction contract to renovate the former Boys and Girls Club building on Legion Drive.

The contract with Contech Contractors Inc. is worth more than $1.18 million. Funding for the project has been budgeted, paid for through a loan secured by the U.S. Department of Housing and Urban Development, as well as federal Community Development Block Grants and Parks Division allocations.

In May, the Board authorized a design contract with Contech and Trull-Hollensworth Architects with the requirement that the final construction contract would be brought back before the board for final approval.

HUD will guarantee a loan funding the bulk of the cost of the project, which aims to provide recreational space, facilitate community programs and events, and generate economic development through sports tourism.

HUD is providing the loan guarantee assistance under its Section 108 program, which enables local governments to borrow money from private investors at reduced interest rates. State and local governments use this financing to assist with a variety of community and economic development proj

ects, including projects that create employment opportunities.

Section 108 loans are not risk-free, however. Local governments borrowing funds secured by the program must pledge a portion of their current and future CDBG allocations, as well as additional project assets, to cover the loan amount as security for the repayment of the loan.

Plans for the 12,245-squarefoot building include a multipurpose gym, a fitness/activity room and meeting areas. Baseball diamonds near the building will also be renovated or constructed. The building has been vacant since 2008 and needs extensive electrical and plumbing work, roof repair and a new gymnasium floor. City Manager Kenny Haskin said Friday he expects construction to begin in mid-December and end in August 2021.

The Board will also consider authorizing pandemic-hazard pay for all city and Texarkana Water Utilities employees.

City employees would receive $3,700 and TWU employees would receive $500, paid for by federal COVID-19 relief funds. The total expenditure would be more than $985,000.

The Board will also take up issuing $12.5 million in bonds to repay prior bonds issued in 2012 and 2015, resulting in debt service cost savings for the city. The new bonds would be secured with franchise fee revenues, which utility companies pay the city in exchange for use of public land.

The Board will vote by consent on increasing the city’s annual contribution to the Texarkana, Arkansas, Public Employee Retirement System from $100,000 plus 10% of payroll to $150,000 plus 10% of payroll.

TAPERS plan actuaries reported last month that the city’s current contribution is not enough to sustain the plan.

“At the current funding level, plan assets are expected to exhaust by 2028,” a summary published with the meeting’s agenda states.

The meeting is scheduled for 4 p.m. Monday. It will be conducted via the Zoom online meeting app and livestreamed on the city’s YouTube channel.

To have public comments read during the meeting, email them by 10 a.m. Monday to City Clerk Heather Soyars at heather. soyars@txkusa.org.