NLR coun­cil plans look at $1.1M ware­house deal

Arkansas Democrat-Gazette - - ARKANSAS - JAKE SANDLIN

A pro­posal for North Lit­tle Rock to sell sev­eral ad­join­ing city properties in an area north of East Broad­way to Bruce Oak­ley Inc., would pro­vide the city with $1.1 mil­lion while free­ing it from man­ag­ing the properties that in­clude sev­eral ware­houses.

The North Lit­tle Rock City Coun­cil is to con­sider a res­o­lu­tion at its 6 p.m. meet­ing tonight to au­tho­rize a pur­chase agree­ment for the 11 parcels in the vicin­ity of North Buck­eye Street and East Fifth Street.

Oak­ley, a dis­tri­bu­tion and trans­porta­tion com­pany at

3700 Lin­coln Road, has rented some of the ware­houses for years and ap­proached the city with an of­fer to buy the land. The properties ap­praised for $1.4 mil­lion in July.

Oak­ley plans to in­vest $600,000 to $900,000 in ren­o­va­tions to ex­pand its busi­ness, ac­cord­ing to the leg­is­la­tion. Some of the ware­houses are in dis­re­pair, Mayor Joe

Smith said last week.

An aban­doned rail line runs through the site that could link to Oak­ley’s main prop­erty, said Todd Lar­son, the city’s eco­nomic de­vel­op­ment di­rec­tor.

“The pri­mary renter all along has been the Bruce Oak­ley com­pany,” Lar­son said Fri­day. “The smaller [ware­house build­ings] for the most part are rented by Oak­ley. Most of them have no elec­tric­ity, no heat, no air [con­di­tion­ing]. Just stor­age. Keep things out of the rain. They made an of­fer to buy it.”

The city ac­quired the properties from a for­mer com­pany dur­ing the 1990s, Lar­son said. The properties had been man­aged by the non­profit North Lit­tle Rock Eco­nomic De­vel­op­ment Corp. The non­profit, for which Lar­son had served as ex­ec­u­tive di­rec­tor, dis­solved last year. Lar­son moved to city em­ploy­ment as part of Smith’s of­fice as of July 1.

The city has re­ceived “rent of $3,000 a month, ap­prox­i­mately,” Smith said, but it has no real use for the properties other than us­ing one of the build­ings for stor­age. Oak­ley will al­low the city to con­tinue us­ing that ware­house for “four or five months at no cost,” Smith said.

“They need the space to ex­pand their busi­ness,” Smith said. “Oak­ley is a very large, grow­ing com­pany in North Lit­tle Rock. This will help them and will help us. We won’t have to man­age those properties any more.”

The $1.1 mil­lion re­ceived from the sale could be used for a spe­cial project or projects in the near fu­ture, Smith said.

“I want to ear­mark it,” Smith said of the funds. “I have two or three ideas. I’ve not made up my mind yet. For prac­ti­cal pur­poses, it’ll go into the gen­eral fund for now.”

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.