Chair Bill Featherstone of the Parks Commission addressed Eureka Springs City Council at its Monday meeting regarding a $35,000 no-match grant through Arkansas Parks & Tourism (APT) for a lighted and paved six-ft. wide exercise trail along the one-third mile perimeter of the Community Center Property.
Alderman Kristi Kendrick said she had been the attorney for the Eureka Springs School District during negotiations with the Community Center Foundation, and had written the lease. Her concern with the grant was a stipulation that if it were awarded to the Parks Department and the trail installed around the Community Center property, but it became unused or taken out of use within the first 15 years of receiving the grant which could occur if the Foundation were to default on its lease, the City of Eureka Springs would be responsible for repaying the $35,000.
She recommended the Foundation get a performance bond, which she described as an insurance contract guaranteeing the Foundation would fulfill its obligations.
Featherstone suggested a simpler alternative would be an agreement with the school district for getting the city off the hook. He intended to propose his idea to the school board at its Tuesday evening meeting. He acknowledged $35,000 dollars would be at risk, and did not want to put the city or Parks in jeopardy. He suggested if there were a default, the school district could absorb repayment of the grant and recoup its losses upon selling the property.
Kendrick said she wanted to know what the district wanted to do before she voted on the grant.
Featherstone interjected that deadline for the grant application to be received at the APT office was Friday at 5 p.m., so he planned to express mail it Wednesday afternoon. He explained the reason for the late request was the Foundation got the property Sept. 1, and this grant required a site visit from APT.
Alderman Terry McClung said he was unsure why the school district would indemnify the city, and wanted to be careful about putting the city at risk. Alderman David Mitchell commented he was totally behind the concept of an exercise trail, but the timing and obligation facing the city made him uneasy.
Kendrick said she would even come to a special council meeting to approve the resolution, but only after the school board approved Featherstone’s idea.
Alderman Mickey Schneider asked why council would not approve the resolution contingent upon district approval.
Featherstone again stated he would not jeopardize the city. “I’m the one going to Little Rock to represent the grant, and I’m not going if the city is at risk.”
Alderman James DeVito wondered if things would not be simpler if the Foundation just got a performance bond. He figured the school board would feel better about things as well. “Put a performance bond in here and be done with it,” he commented.
Other comments percolated regarding the performance bond idea, the lateness of the request and an unwillingness to put the city at risk. Mayor Butch Berry eventually suggested they simply say in the resolution that council supports the application. Aldermen liked the idea, so City Attorney Tim Weaver took a moment to amend the resolution to say the city supports the director of the Parks Department to apply for the grant. Council approved it unanimously.