Fort Smith Board of Directors Regular Meeting – January 20, 2026

The Fort Smith Board of Directors met on January 20, 2026, to discuss and vote on several key items, including the adoption of a new property maintenance code, the demolition of four dilapidated structures, and a major expansion of Parrot Island Water Park. The meeting featured extensive public comment, particularly on the water park expansion, and included discussions on financial transparency, audits, and city priorities. The board approved the water park project in a 4-3 vote.

Consent Calendar

• Approval of January 6, 2026 Regular Meeting Minutes: Approved unanimously.
• Consent Agenda Items (16 items): Approved as a group, with the exception of items 6A (Main Street Fort Smith agreement) and 6B (Roosevelt Group agreement), which were pulled for separate discussion. Item 6C (IGM Holdings software agreement) was tabled pending negotiation of a fixed price.
  • 6A (Main Street Fort Smith agreement): Tabled pending a study session discussion (5-2 vote).
  • 6B (Roosevelt Group agreement): Approved after debate (5-2 vote).
  • 6C (IGM Holdings software agreement): Tabled to allow city staff to negotiate a fixed price locked for the three-year term (7-0 vote).

Public Comments & Testimony

• Item 1 (Property Maintenance Code): One speaker, Joe Elskin, expressed concern about how residents can access and understand the new code, especially given affordability challenges with heating and safety.
• Item 3A/3B (Water Park Expansion): Ten speakers signed up to comment, almost all opposing the ordinance.
  • Kim Fodge: Cited financial liquidity issues at Parrot Island, stating the park has a quick ratio of 0.22 (below 1.0, indicating inability to pay bills), and argued that adding slides will worsen operational and maintenance costs. Called for a full audit before any spending.
  • Eric Wideman: Discussed his experience with tree maintenance on Phoenix Avenue and stated that marketing for the water park is nonexistent.
  • Chris Cadelli: Opposed the ordinance, citing lack of transparency, the no-bid contract, and what he called a conflict of interest regarding Director Kemp's involvement in recruiting the contractor. He asked Director Kemp to recuse himself from the vote.
  • Crystal Cadelli: Presented FOIA documents showing the park incurred at least $836,000 in repair costs between 2024 and 2025, unpaid invoices, delayed payments, and a broken water meter that lost over $40,000 in revenue. Opposed the no-bid contract and the contractor's lack of aquatics experience.
  • Jerry Donaldson: Raised safety concerns about water slide accidents, specifically mentioning two vertical falls, and questioned the lack of a safety engineer review.
  • Dan Williams: Opposed turning the park into a “party center” with alcohol sales. He called for a full audit and stated the park should be self-supporting.
  • Joey McCutcheon: Accused the board of being either incompetent or lying, stating the project cost ballooned from $4.2 million to $6.2 million. He argued that the scope of the project had materially changed and that the board could not be trusted.
  • Ken Lyon: Questioned the return on investment of competing with Alma’s water park and argued that downtown Miss Laura’s Social Club, with its unique historical value, is a better investment for tourism.
  • Shane McKinney: Described the water park as a “money pit” and a “sunken cost fallacy,” urging the board to sell the slides and invest downtown.
  • Casey Millspaw: Asked the mayor to veto the spending, requesting more time to develop a better decision.
  • Victoria Harris Hardy: A retired law enforcement officer of 28 years, she expressed anger that the board had cut police and firefighter positions while spending on the water park, stating that the vote "spits on" injured officers and firefighters.
• Item 4 (Consent Decree Change Order): One speaker, Joey McCutcheon, criticized the city for not hiring an independent engineering contractor to oversee such projects, citing cost overruns on past consent decree work.
• Item 5 (Patriot Utilities Change Order): No public comments.
• Item 6 (Consent Agenda): Multiple speakers commented on various sub-items, with several opposing the Main Street Fort Smith and Roosevelt Group agreements, calling for measurables and questioning the value.

Discussion Items

• Item 1 (International Property Maintenance Code Adoption): Sean Gard, Director of Neighborhood Services, presented the ordinance to adopt the 2021 edition of the International Property Maintenance Code. He outlined minor changes, including fire safety and life safety provisions, and noted that three copies of the code are on file. Discussion included how residents can access the code and concerns about space heaters for those with financial hardship. The ordinance passed 6-1 (Director Martin opposed).
• Item 2 (Demolition of Four Structures): Sean Gard presented properties at 3222 Blair Ave, 3925 Row Ave, 1108 North 9th St, and 510 South K Street. The structures have been open cases for years; one since 2011. Discussion included the process for liens and potential forfeiture to the commissioner of state lands. The ordinance passed 7-0, with the emergency clause also passing 7-0.
• Item 3A/3B (Water Park Expansion): Jeff Dingman introduced two ordinances: 3A appropriating $1,274,935 from the general fund reserve (reducing the projected fund balance from 34% to 31%), and 3B authorizing two construction contracts with Royal Ridge Construction totaling $1,739,934.12 for water slide and pump house installation. Staff stated the total project cost is now estimated at $2,689,935, with additional work yet to be bid. Director Christina Katsavitis questioned ARM's (the management company) role, stating they should be held accountable for the original $4.2 million estimate. Director Kemp detailed his efforts to find a local contractor, noting that Royal Ridge was not an aquatics company but a subcontractor on a previous bid. Director Neil Martin made a motion to move the $1.2 million from the general fund to the parks CIP, which failed 1-6. After extensive debate, the ordinances passed 4-3 (Directors Rego, Good, Kemp, and Settle in favor; Directors Katsavitis, Martin, and George Katsavitis opposed).
• Item 4 (Change Order #2 – Forsgren Consent Decree Project): Jeff Dingman presented a change order adding 50 working days and $95,000 to replace a main sewer segment. The resolution passed 7-0.
• Item 5 (Change Order #1 – Patriot Utilities Consent Decree Project): Jeff Dingman presented a change order adding 16 working days and $12,099 for increased fencing costs. The resolution passed 7-0.
• Item 6 (Consent Agenda): Items A and H were pulled for separate discussion. Item 6A (Main Street Fort Smith) was tabled for a study session. Item 6B (Roosevelt Group) was approved after discussion where Jeff Dingman stated the group helped secure $600,000 for a military installation resiliency grant and a $4.3 million grant for schools. Item 6C (IGM Holdings) was tabled.
• Directors’ Forum: Director Kemp requested an update on an independent engineer consultant for the consent decree. Director George Katsavitis made a motion to request an independent review by the Arkansas Attorney General regarding procurement and authorization issues with the water slide purchase. After discussion about procedure, it was decided to address the motion at a future study session.

Key Outcomes

• International Property Maintenance Code (Item 1): Adopted 6-1.
• Demolition of Four Structures (Item 2): Approved 7-0, including the emergency clause.
• Water Park Expansion (Items 3A & 3B): Approved 4-3. The board appropriated $1,274,935 from the general fund reserve and authorized $1,739,934.12 in contracts with Royal Ridge Construction.
• Consent Decree Change Orders (Items 4 & 5): Both approved 7-0.
• Consent Agenda: Main Street Fort Smith agreement (6A) tabled for study session. Roosevelt Group agreement (6B) approved 5-2. IGM Holdings software agreement (6C) tabled to negotiate fixed price.
• Director’s Motion: A request to refer the water slide procurement concerns to the Arkansas Attorney General will be discussed at a future study session.