Council rejects proposal to sell city-owned lots

The Eureka Springs City Council rejected a proposal to sell city-owned land on Anderson Street and delayed action on a $60,000 damage claim from a downtown restaurant during its regular meeting Monday, March 9.

The council also postponed discussions on several other issues — including a possible city sales tax to fund water and wastewater improvements, a permanent downtown entertainment district and a proposed sidewalk ordinance — sending them to workshops.

Despite some council members saying the lots are unbuildable and of little value to the city, three council members opposed selling the property under the current proposal.

Lyla Allison offered the city $5,000 to purchase Lots 12 through 16 on Anderson Street.

Council members Terry McClung and Harry Meyer said the city should sell the land and questioned the opposition from fellow council members Rachael Moyer, David Avanzino and Susane Gruning.

Moyer said she opposed selling city-owned land before the city completes revisions to its long-discussed vision plan.

“It’s hard to know where we’re going to be five or 10 or 20 years from now,” Moyer said. “Because we don’t have that plan in place, I’m not in favor of selling city property until that happens.”

Recent talks by the planning commission on the vision plan have included little — if any — discussion about how city-owned lots could factor into any long-term solutions to issues mentioned by Moyer.

Allison, a real estate agent, said the five lots total about 0.28 acres. She said she offered $5,000 to resolve a longstanding boundary issue and secure permanent access to her property.

“I’m a native born in Eureka, born in the Eureka Springs Hospital,” Allison said. “I obviously want what is best for Eureka. I just want to secure a way to get in and out of my property.”

McClung said the property has little practical value to the city and selling it would allow the land to return to the tax rolls.

“It’s good stewardship to relinquish that and let her start paying taxes on property that’s generating zero for the city,” McClung said.

The offer was rejected 3-2. Council member Steve Holifield did not vote.

Allison will return to the council’s March 23 meeting to discuss a possible easement and present an updated evaluation of the land.

GROTTO DAMAGE CLAIM

DEFERRED

The council delayed making any decision on a proposal from Grotto Wood-Fired Grill and Wine Bar owners Rodney and Autumn Slane for the city to pay for extensive water damage caused to their business last fall by a public works mishap. 

Heather Owens, an attorney representing the city, said the Slanes are seeking $60,000 in damages and lost profits after negotiations with the city failed to resolve the claim.

Public works director Simon Wiley said the damage occurred after a storm filled an open water meter excavation next to the restaurant while city crews were replacing a meter at a neighboring business.

The water entered the building and problems with a sump pump system worsened the flooding, he said.

“I’m happy to hear the presentation but I didn’t see anything that showed actual repair costs,” Moyer said. “I just saw pictures. I didn’t see anything that showed the actual proof of loss of business or anything that you could … I don’t know where the $60,000 comes from and I didn’t have any receipts with which to prove that statement, so …”

Autumn Slane said two to three inches of water flooded the restaurant, damaging equipment, sheetrock and other parts of the building. She said it could cost the restaurant $60,000 — including paying employees — to shut down for three weeks or so to make all the necessary repairs.

Moyer said she sympathized with the Slanes but questioned whether the council had received enough documentation to justify the claim.

“I didn’t see anything that showed actual repair costs or proof of lost business,” Moyer said.

Moyer also noted that cities generally have immunity from tort liability unless damage is caused intentionally.

The Slanes said they were advised by attorneys that the tort immunity law only includes incidents involving personnel, and not incidents like the water damage. Owens disagreed with those comments.

Autumn Slane also said their insurance company referred them to the city when trying to file a claim.

“… Apparently that is protocol that they pay the deductible of the insurance and we were directed by the mayor to file with our insurance,” Autumn Slane said. “We tried to file with our insurance and they said that it was not ours because it was not our fault, that the liability fell on the city. So, with that direction from our insurance agent we went back to the city and then we began to negotiate what was due or what could make us full again.”

Owens said the city can choose to pay the Slanes but is not legally obligated to do so.

“So, this must be very frustrating for you,” Moyer said. “Yes, I 100 percent feel for you, and I sense the frustration, and what I’m about to say is in no way a reflection of how I know  this must feel. My understanding is that before us tonight, not the offer that happened before, not any of anything that happened before, but tonight, the council. … is charged with determining whether or not we want to accept a counteroffer to provide $60,000 in recompense for what has happened. And prior to this meeting, in which there was going to be a hearing that we’re apparently in at this moment, I thought we could either say yes or no, but … you guys were asked to present all of your evidence to us in plenty of time to review, and I am just now seeing anything that even looks like real numbers. So my inclination right now, because framed out, what we’re tasked to do is either to accept a $60,000 counteroffer or no,

“I would say I would not do that because I wasn’t provided the evidence to review, I don’t know what any of this means, and I’m not going to be able to decide it right here.

“I don’t know what happened before, and if we were just talking about damages, that would be easier for me. I’m just speaking for myself to wrap my head around. But then now we’re also talking about damage, estimates for repairs that may have or have not been done, and lost business. And the lost business puts it in a whole different area. If we’re tasked tonight with saying whether to accept the counteroffer, I would say no.

Rodney Slane reminded the council that Paul Sutherland, the city building inspector, has had the information and has been involved in the process since the incident.

“What I’m saying is we have provided this since September,” Rodney Slane said.

In the end, however, the council voted to table the issue until its next meeting, scheduled for March 23.

PUBLIC WORKS UPDATE

Wiley, who recently announced plans to retire but said he will remain in the position for now, updated the council on several projects.

Wiley said the city recently completed water taps on Passion Play Road, West Van Buren Avenue and North Main Street, replaced a meter on Magnolia Street and plans to repair a leak on East Van Buren Avenue near Osage Creek Lodge once a temporary traffic signal is installed.

He also said the city purchased a John Deere skid steer to assist with clearing ice and snow on steep streets during winter weather.

Regarding renovations at the wastewater treatment plant, Wiley said the city has received approval from the Arkansas Department of Health and is awaiting clearance from the Arkansas Department of Environmental Quality before moving forward.

“We’re waiting for approval from the Department of Environmental Quality,” Wiley said. “… The state works at their own pace.”

Wiley said the second phase of the wastewater project, originally estimated at about $4 million, might instead be completed through smaller contracts handled by the city rather than through the engineering firm overseeing the initial $6.5 million phase.

OTHER ITEMS

The council approved a temporary entertainment district for the Goggles, Gears and Springs steampunk festival scheduled for April 25.

Council members also discussed conflicts over event banners at Spring and Main streets. Wiley said he would look for a secondary banner location, and the mayor’s office was asked to develop a written policy. The issue will return March 23.

The council also agreed to continue discussions on a proposed sidewalk ordinance at a future workshop.