SPRINGDALE — The city’s Public Facilities Board on Monday approved buying 4.8 acres of land for $275,000 from the Newman Family LLC.
The site is the second purchase approved by the board within a week. The board voted Wednesday to buy back a 14.3-acre parcel from National Home Centers.
Both sites will be set aside for industrial development.
“I think it’s important for this board to maintain an adequate inventory of light industrial property,” board member Mark Wann said.
The board oversees and retains the city owned properties for industrial use until they are sold to private businesses that develop them.
Both Newman Family LLC and National Home Centers are owned by members of the Newman family, but they are set up as separate entities, said Dwain Newman, manager of the LLC.
The city owned the larger site until National Home Centers bought it for $629,186 in 2005. The contract had a repurchase clause that allowed the board to buy it back for the original selling price.
The 14.3-acre site sits behind Newlywed Foods off Arkansas 265. The 4.8 acres are on the corner of Arkansas 265 and Angell Drive, on the west side of the larger site.
The first property became available after National Home Centers filed for Chapter 11 bankruptcy, which means the company will attempt to reorganize its debts.
“We’re trying to scale back our costs,” Newman said.
The bankruptcy court must approve the transactions, but Newman said it is normal for the courts to review sales when there is a bankruptcy. He hopes to close on the properties in January.
Three of the five board members voted to approve the purchase. Blake Hanby abstained citing family relations to the Newmans and another member was absent.
The purchase will be paid for with proceeds from past sales, of which some are held in a certificate of deposit. The board agreed to pay an early withdrawal penalty of up to $1,100 to cash out the CD.