Interchange Construction Forces Church To Relocate

SPRINGDALE — A church that will be uprooted by construction of a new Interstate 540 interchange will soon be without a home.

City officials expect to award a contract as early as January for construction of the Don Tyson Parkway interchange. Estimated cost of the interchange is $25 million. Construction of the entry and exit ramps on the east side of I-540 will force demolition of the building at 3598 S. 48th St. where Victory Church of Northwest Arkansas holds services.

The short time between when Victory receives payment from the city for the building and when it has to move will create a major hardship, said Billy Coffman, senior pastor.

“It will take a miracle for us to find a good place to rent,” Coffman said. “Then we will have to move again when we build a new church. We’re not trying to hinder the progress of the city, but the progress of the city should not hinder our growth and put our existence at risk.”

The city will have to purchase all or portions of 20 parcels of land to build the interchange, said Patsy Christie, city director of planning. Three residences, a business and the church will be demolished, she said. One residential property also includes a business that also will have to be removed.

Regulations for the construction of the interchange have created hardships for property owners, said Mayor Doug Sprouse.

“I agree, it’s put some people in a bind,” Sprouse said. “But we are spending public money and have to make sure it’s spent correctly. We don’t want to jeopardize receiving federal money and delaying the construction of the interchange.”

The city could receive up to $8 million from federal money over the next three years, Sprouse said. Interchange construction, which will use some money from the bond sale approved by city voters, must be completed in three years by bond regulations, Sprouse said.

Since I-540 is a federal highway, the city is required to follow federal regulations in its planning and construction, Christie said. Following the federal rules also will make the interchange eligible for federal money for construction, if any becomes available.

The federal regulations include strict procedures that must be followed. One requires the city to purchase property only after design is completed to make sure what property is needed. An appraisal then a review of the appraisal by another appraiser follows. Every step must be approved by the Arkansas Highway and Transportation Department, Christie said.

Stephen Lisle, a Springdale attorney representing Victory Church and property owners John and Laura Sisemore, said the time schedule favors the city.

“They have been working on the interchange plans for years,” Lisle said, “but when they make an offer, the owner has 30 days to make up his mind. That’s not enough time.”

“I know it’s taken a lot of time,” Sprouse said. “But we made an offer as soon as we legally could.”

The city offered $2.4 million to the church, based on the value of the property from the assessment.

At Coffman’s request, the city filed condemnation proceedings.

When property is condemned for public use, the government agency, the city in this case, is required to deposit with the court the amount of the property’s appraisal. After a settlement or a trial, any additional money awarded is paid to the property owner.

Condemnation of the church building would allow Victory Church to receive the city’s money quickly, while still allowing church representatives to dispute the value of the property.

“Since this process started, I’ve asked the city not to leave us hanging,” Coffman said. “We wanted enough time to at least get a new building started. We asked them to wait until May, but they gave us until the first of February (to move).”

The church has located property on which to build a new church north of U.S 412 on Arkansas 112, Coffman said. A timeline for construction has not been set. Until that building is complete, the congregation must find a place to rent.

The church, which formed 24 years ago, has something going on every day of the week, Coffman said. Its 400 parishioners use all of the 20,000 square feet of the building, he said.

“We’ve got a TV studio and equipment,” Coffman said. “We have special lighting. We have everything set up that works for us. We won’t be able to find that to rent.”

Commercial space, which is the only type of building with the size and parking a church needs, rents for $1 per square foot per month, Coffman said.

“That’s $20,000 a month for just the walls,” Coffman said. “We’ll have to renovate the space to make it work for us.”

The city will pay moving expenses for the church, the businesses and the homeowners, said Christie. The city hired Universal Field Services, located in Tulsa, Okla., to determine the amount of relocation expenses and the logistics of moving. Representatives of the company did not return phone calls.

“I’ve been told that the limit for relocation is $10,000,” Coffman said. “That would be a drop in the bucket for our costs.”

The federal Housing and Urban Development handbook for real estate acquisition and relocation states a business, farm or nonprofit organization eligible for relocation payments can pick how it wants to be paid. One option is a payment of actual costs. The other is a fixed payment of up to $20,000. Actual costs can include re-establishment costs of up to $10,000, according to the handbook.

“I don’t know the actual figure of what the moving and storage costs for the church will be, but the estimates are between $100,000 and $200,000,” Sprouse said. That includes two moves.

The bottom line for Coffman, he said, is the church has not been treated fairly. The church has been disrupted since interchange planning started, and the offer for the church property is half of its true value, he said.

“The church will survive,” Coffman said. “We will continue our mission. I wish the city had a passion to help us with that mission.”