Fayetteville Public Library wins property dispute

Tabitha Novotny, a page at the Fayetteville Public Library, shelves children’s books Thursday in the library’s children’s library. The library will now be able to more forward with a planned expansion to enlarge its children’s and teen’s libraries after a ruling by the Arkansas State Supreme Court on Thursday.
Tabitha Novotny, a page at the Fayetteville Public Library, shelves children’s books Thursday in the library’s children’s library. The library will now be able to more forward with a planned expansion to enlarge its children’s and teen’s libraries after a ruling by the Arkansas State Supreme Court on Thursday.

FAYETTEVILLE -- The Arkansas Supreme Court's ruling Thursday paved the way for the Fayetteville Public Library to expand onto adjacent property.

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NWA Democrat-Gazette

The former Fayetteville City Hospital building stands Thursday, south of the Fayetteville Public Library building. The library will be able to expand southward, enveloping the former hospital property, after a state Supreme Court ruling to settle a dispute over the property’s ownership.

Justices upheld a lower court decision identifying Washington Regional Medical Center as the rightful owner of the old City Hospital land just south of the library. The court determined heirs of the Stone family, who donated the land to the city a century ago, have no legal standing to challenge the $2 million sale of the land to the library.

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"We've had this thing under contract with Washington Regional now for over 4½ years," said David Johnson, the library's executive director. "It's nice to finally see that we can move forward with our original intention, which was to build on and expand this lovely library."

Voters in August approved a millage increase to pay for about $26.5 million of a proposed $49 million expansion. The library will effectively double in size, crossing Rock Street and adding a two-story children's library, multipurpose space, a roof garden, expanded parking and other features.

A dissenting opinion from two justices disputed whether the court should have addressed arguments challenging the lower court's decision to "quiet" the land's title, or remove any competing claims to the property. However, all seven justices agreed the Stone family heirs had no interest on the property and no legal standing on any issues relating to the charitable trust established in a 1909 deed. Chief Justice John Dan Kemp wrote the 1909 deed effectively terminated any interest of the Stones that was created in a 1906 deed.

Stephen and Amanda Stone gave the land to the city in 1906 for a hospital site, which it was for many decades. Washington Regional leased the land from the City Hospital organization in the 1990s before becoming City Hospital's successor. The city and Washington Regional agreed to a land swap in which Washington Regional would get the old City Hospital land and the city would get 1 acre near the medical center to build a roundabout.

Washington Regional sued to clear the land's title for sale in 2014 and the Stone heirs brought their objections to court. Washington County Circuit Judge Cristi Beaumont granted summary judgment, or a decision without a full trial, to Washington Regional and the city. The Arkansas Court of Appeals affirmed the decision and representatives of the Stone family filed a petition of review with the Supreme Court, which the court granted in July.

Tom Olmstead, Washington Regional senior vice president and general counsel, said in a news release the Supreme Court ruling reaffirmed the lower courts' decisions establishing the medical center as the rightful owner of the property.

"This ruling supports and honors the vision that S.K. and Amanda Stone had more than 100 years ago that hospital services are vital to our community," he said. "We are further pleased that Washington Regional Medical Center, the City of Fayetteville and the Fayetteville Public Library will now be able to proceed with utilizing the entirety of the property to further their respective municipal and charitable activities to the benefit of all Fayetteville residents."

Washington Regional has said the $2 million will go toward its neurosurgical operating room. The money will come from the library's foundation and was left over from the campaign to build the library at the corner of Mountain Street and School Avenue.

Jane Lipscomb Stone, who has publicly represented the family throughout the proceedings, said Stephen and Amanda Stone's gift to establish a city-owned hospital has been lost to a private business that didn't pay for it.

"Now, the citizens must pay for the land that the Stones intended to be a gift," she said. "Perhaps this will serve as a warning to future donors who expect that the charitable intent of (their) gift will be preserved after their death."

Johnson said he expected to close on the land deal in the coming weeks. The Stone family, or anyone for that matter, could request a rehearing within 18 days of the decision, he said. The library can make the purchase within 30 days of the title being cleared.

The city soon will put out requests for architects. Minneapolis-based Meyer, Scherer and Rockcastle developed initial concepts for the expansion months ago, but the library will remain open to possibilities, Johnson said.

After that, bids will go out for construction, demolition and asbestos abatement. Library administrators want to hold public meetings in July to iron out details on the expansion, Johnson said. The library's board will have to take action during its next meeting April 17 to allocate the $2 million for the land purchase. The bonds also have to be sold.

If all goes without a hitch, construction can begin late this year, Johnson said.

"What the Supreme Court gave us today was the green light to dream big, the way we had originally intended to," he said. "Dream big and deliver even bigger."

NW News on 03/17/2017

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