Jonesboro, AR – (JonesboroRightNow.com) – The Jonesboro city council on Tuesday unanimously voted to send a resolution that would have seen the purchase of three lots of land, including property where the former Citizens Bank building once stood, back to the Finance and Administration Council Committee.
Council members voted to send the discussion back to committee after raising concerns about the cost of the land and the timing of the purchase.
According to the resolution, the city would have purchased three lots of land owned by Laurel Park LLC for $750,000. The deal would have needed to close by Dec. 29, according to the real estate contract presented to the city.
“I think that kills it essentially, because there would not be time to then close by the end of the year, so the offer would be off the table,” city attorney Carol Duncan said of sending the resolution back to the Finance and Administration Council Committee. “It’s the same difference as voting it down, in my opinion.”
In addition to the city buying the property, the resolution would have ended litigation involving an over $3 million lien the council members voted to place on the lot where the former Citizens Bank building once stood in early September, in an effort to recoup demolition costs.
Laurel Park LLC, owner of the land where the building once was, appealed the lien decision in Craighead County Circuit Court later in September, court records show. Duncan said the city has until Feb. 1 to respond to the litigation, and that the council’s decision Tuesday night does not affect the lien.
City officials said the goal was to determine the best long-term solution for the city to recover the funds used to demolish the building and to also possibly develop the property.
Council member David McClain brought up concerns about the cost of the property, echoing statements he made during the Dec. 9 Finance and Administration Council Committee meeting. He pointed out that if the city were to develop the area, the city would likely need to purchase lots next to the property, incurring more costs.
“I just don’t see why it would make sense for us to do that,” he said. “I think this is a bad deal. I don’t think we owe him [Andrew Smith, owner of Laurel Park LLC] anything just because he got a bad deal. I understand we want to own that property, but at the same time, we got to be responsible to not just spend money on dirt that we won’t be able to sell.”
John Street brought up similar sentiments, saying a “sizable chunk of taxpayer money” had already been spent to demolish the building, and that the city had no specific need for the small lot, adding that he would rather fight the lien litigation in court.
Council member Joe Hafner also brought up concerns about the timing of the potential purchase.
Because the deal had to close out by Dec. 29, the council would have had to vote Tuesday night to purchase the property. Hafner said he felt council members were being “put under the pressure cooker” to make a decision by the end of the year. There are no more city council meetings scheduled for the rest of 2025.
Jerry Halsey, who is the principal broker for the deal, said Smith had a financial gain “not related” to the purchase of the land.
“It’s a one-time opportunity for him to take the loss and minimize his losses,” Halsey said. “If there’s going to be a time frame where he’s going to sell it short, he’s going to sell it short this year because he has an opportunity. And, after Jan. 1, it’s his opinion that he’s not going to sell it short, he’s gonna stay in it for the long haul.”
Chris Moore argued for the city purchasing the property, saying the most effective way for the city to recoup costs put into the property would be to “steer” its development and end potentially lengthy legal litigation.
“That’s premier entrance to the downtown. I think we need a hotel, I think we need something big there, and I think the only way that’s gonna happen is if the city helps with that development,” Moore said. “I think we’re losing money on tax revenue to drag it out over that length of time and litigate it.”
With the council’s decision, the discussion will go before the Finance and Administration Council Committee, which is scheduled to meet Dec. 30 at 4 p.m.
While Tuesday night’s outcome will effectively remove this purchase option, city council members speculated on possible alternative ways forward including continuing litigation, ending the lien litigation and accepting a loss, or using the lien as a negotiation tool to steer future developers of the site.
Part of Main Street was initially shut down in September 2024 when a bulge was noticed on the side of the former Citizens Bank building. It was condemned in December 2024.
The city council voted in January to approve the building’s demolition. Demolition officially began in March, and all streets affected by the project reopened to traffic in May.
