FORT SMITH - Investors planning a major shopping mall in Barling haven’t succeeded in getting alcohol sales approved there, but the group still plans to close on its $2 million purchase of 90 acres in early June.
Plans for the mall in the town of about 4,650 just east of Fort Smith include restaurants and hotels that serve wine, beer and mixed drinks.
The investors are talking with Dallas mall developers about a shopping center with up to 70 stores that would create as many as 700 jobs. It would be built at the Chaffee Crossing mixed-use development on Fort Smith’s east side and become one of the largest shopping centers in the area.
The Hot Springs investors “are getting quotes on buildings to put on it.
They’re talking with three retail mall developers and one discount mall developer,” said Larry Webb of Diamondhead Realty in Hot Springs, who’s working with investors on the project.
And they haven’t given up on alcohol sales.
Barling voters approved alcohol sales in November 1,082 to 546. But Sebastian County Circuit Judge Stephen Tabor voided the election in January, saying state law requires the liquor initiative to get approval from voters in the entire southern Sebastian County district, since the whole district - which includes Barling - voted to ban alcohol in 1944.
Barling officials also weren’t able to get legislation passed this year in the Arkansas General Assembly to give their town and similar cities the right to decide alcohol sales for themselves.
Before the election, mall developers and their supporters said the vote was key to attracting upscale restaurants and hotels, which count on alcohol sales for more than 25 percent of their revenue.
If the vote didn’t pass, they said, developers might be forced to build a much smaller shopping center.
Still, Barling City Director Bruce Farrar says: “I think we’re going to win this … I’m excited about the mall and the opportunities it will bring.” Farrar led efforts to put the alcohol measure on the town’s ballot last November.
Barling plans to explore other legal options, he said.
If those fail, there’s another fallback, said Chaffee Crossing Executive Director Ivy Owen.
That would be for restaurants and hotels to seek private-club alcohol sale permits. Arkansas law allows the creation of private clubs to serve alcohol in dry counties or districts.
“I don’t think there’s any reason they would not be approved,” said Owen.
Owen oversees sales and development of property in the 7,000-acre Chaffee Crossing industrial-commercial residential development.
Straddling Fort Smith, Barling and Crawford County, it was carved from the former Fort Chaffee Army base, a World War II-era facility that closed in 1995.
Webb said Hot Springs investors plan to close in early June on the mall property site, located at the intersections of Arkansas 22, Arkansas 59 and future Interstate 49.
A 5.5-mile section of that future interstate is under construction now in Chaffee Crossing. Arkansas Highway and Transportation Department District Engineer Joe Shipman expects the four lane, limited-access highway segment to open for traffic in summer 2014.
The new highway is at least as important to the mall project as alcohol sales, developers say.
According to Webb, the convergence of roads makes the location too good to pass up. “Rogers Avenue [Arkansas 22], which is a main street, comes through there. And then there’s a major interstate crossing. Any time you have two [roads] like that come together, you have a great investment opportunity,” Webb said.
Developers are hoping for a traffic count of at least 30,000 vehicles daily, he said. Arkansas Highway Department officials say they don’t have current traffic estimates for the 5.5-mile strip.
Target dates for developing the shopping site include building and opening a hotel and restaurant by late next year, Webb said. “There’s one restaurant that is seriously looking at going for a private-club permit” to sell alcohol, he said.
Business, Pages 29 on 05/25/2013