The Little Rock Technology Park is requesting about $1.4 million of its promised city funding to prepare for negotiating the purchase of properties for Phase 2 of its construction.
When voters approved a 1 percentage point sales tax increase in 2011, three-eighths of the increase came in the form of a temporary tax dedicated to capital expenditures. The city promised $22 million of those proceeds, over the 10-year life of the tax, for the development of the tech park.
As of the end of 2016, a total of $8 million had been collected for the tech park. City officials already distributed a little more than $6.6 million of that in previous years.
That left a balance of $1,364,591, which tech park Executive Director Brent Birch has requested be released.
"[There's] no immediate or direct plans for these funds. [They] could be used to service debt or purchase additional property as we shift our attention to future phases after phase one is up and running," Birch said in an email Tuesday.
"For us to be able to negotiate in earnest on any of the remaining target properties, we need to have these funds in hand versus negotiating then having to go back to the [Little Rock Board of Directors] for approval of disbursement," he said.
The disbursement is on the agenda for approval at next Tuesday's 6 p.m. Board of Directors meeting at City Hall.
The site planned for the tech park includes property located in and adjacent to a downtown city block between Main and Scott streets off Capitol Avenue. The park already has purchased $11.6 million worth of property at the planned site. Total land acquisition is estimated at $17.5 million.
The site is made up of the Exchange Bank building and its annex, once owned by Stephens Inc.; KATV-TV Channel 7's studio and parking garage; a vacant building often referred to as the old Stephens building; the Mays, Byrd and Associates law firm; and five parking lots. All of the Stephens property was purchased in the first phase.
Phase 2 properties include the parking lot at the northeast corner of Fourth and Main streets and the KATV studio and parking deck. Tech park officials have not yet determined which property to purchase first, Birch said.
He said there's no set plan or timeline for when the city will disburse any future sales tax revenue accruals to the tech park. The procedure to date has been for the tech park to send a letter requesting disbursement when funds build up.
Disbursements by the city in 2015 were used by the tech park as a down payment on a loan to finance the property purchases for its first phase of construction.
Metro on 02/15/2017