OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Jonesboro Finance & Administration Council Committee Meeting - May 26, 2026

Meeting Portal — Tuesday, May 26, 2026
BodyJonesboro, Arkansas
SessionMeeting Portal
DateTuesday, May 26, 2026
StatusFILED
Video Record
0:00 / 1:07:45

Transcript — Verbatim
0:00

All right, good afternoon, everybody.

0:01

It's four o'clock.

0:02

I'm gonna call today's finance administration council committee meeting to order.

0:06

Um please go ahead and record record your attendance.

0:13

Text ups approval of minutes from the Tuesday, May 12th, 2026 meeting.

0:19

Move to approve listeners noted change.

0:21

Second.

0:21

Motion second to approve.

0:23

Um, any question or comments on the minutes as presented?

0:27

If not, please vote on whether or not to approve the minutes.

0:32

All right, we'll go into new business.

0:35

First step is resolution 26056.

0:38

It's a resolution by the city council of the city of Jonesville, Arkansas to accept a permanent easement.

0:44

Um I'm sorry, a permanent right-of-way easement from Arkansas State University for the purpose of the constructing and maintaining pedestrian and bicycle infrastructure improvements, whereas the city of Jonesboro hereby is desired to accept the following described right away for the purpose of constructing and maintaining pedestrian and infrastructure improvements.

1:02

Legal description follows.

1:13

Move forward to full council.

1:15

Second.

1:15

I must take forward full counsel.

1:17

Any questions from the committee?

1:20

Anything from staff?

1:22

Anything from the public in attendance.

1:25

If not, please record your vote on whether or not to forward resolution 26056 to full council.

1:35

All right.

1:38

A resolution to authorize the execution and delivery of an escrow deposit agreement in connection with the defeasance of bonds issued to support Coast and Castro LLC and its affiliates to authorize the conveyance of real property related to the bonds and for other purposes, whereas the city previously issued its 11 billion dollar taxable economic development revenue bonds.

2:02

Um series 2022 A and its 4 million taxable economic development revenue bonds series 2022 B, and collectively with the Series 2022 A bonds, the defease bonds pursuant to the terms of a trust indenture date as of April 19, 2022 between the city and first security bank, and whereas the contemporaneous with the issuance of a of the defease bond.

2:32

Michelle, did you write this?

2:35

Um of the defease bonds, the city issued is not to exceed $9 million taxable economic development revenue bonds series 2022 C, and together with the defease bonds, the 2022 bonds, and whereas proceeds of the 2022 bonds were loaned to Coast and Castro LLC and its affiliates to finance acquisition and construction of manufacturing facilities, infrastructure, and improvements, and the acquisition and installation of facilities and equipment for the development, manufacture, warehousing, and distribution of casters and wheels located at 2121 Barn Hill Road, Jonesville, Arkansas, whereas contemporaneous with the issuance of the 2022 bonds, the company granted a um one or I granted a mortgage to first security bank as collateral agent to secure the company's obligations under guarantees from the Arkansas Development Finance Authority and the Arkansas Economic Development Commission supporting the 20 2022 A bonds and the company's obligations with respect to the 2022 bonds and two implemented a sell lease back transaction with the city in order for the project to be eligible for ad valorum property tax abatement, and whereas the project was constructed and is operational, and whereas the company is exercising its option to repurchase the real estate and buildings comprising the project for a price that is sufficient to defease the series 2022 bonds and the series 2022 B bonds.

4:06

And whereas the city, the trustee, and the escrow agent will enter into an escrow deposit agreement to make adequate provision for the retirement at maturity and upon redemption prior to maturity on April 1st, 2027 of the defease bonds.

4:21

And whereas this resolution is adopted to authorize the execution of one or more Ds to transfer title to the reference real estate upon the exercise of the option in compliance with the provisions of Arkansas Code annotated 14-54-302 relating to the transfer of its real property owned by the municipal municipality.

4:42

Now therefore be it resolved by the city council of the city of Jonesville, Arkansas that section one there be and is hereby authorized the execution and deliverance of the escrow deposit agreement by and between the city trustee and first security bank as escrow agent and the mayor and city clerk are hereby authorized to execute, acknowledge, and deliver the escrow deposit agreement for and on behalf of the city.

5:05

The escrow deposit agreements hereby approved substantially in the form submitting submitted to this meeting.

5:11

Section two, the mayor and city clerk authorize execute, acknowledge, and deliver all papers, affidavits, statements, documents, certificates, deeds, releases, and other instruments that may be required to evidence the transfer of title to the real estate and building to release or consent to the release of liens and encumbrances occurring or related to the fees bonds and to satisfy the requirements of the title company assisting with the closing of the repurchase repurchase of such property.

5:39

All such instruments shall be subject to the review and approval of the city attorney prior to execution and delivery.

5:46

Section three, severability.

5:48

In the event any title, section, paragraph, item, sentence, clause, phrase or word or mispronunciation of this resolution is declared or a judge to be invalid or unconstitutional, such declaration or adjudication shall not affect the remaining portions of the resolution, which shall remain in full force in effect as if the portion so declared were a judge invalid or unconstitutional were not originally part of the resolution.

6:14

Section four, repealer.

6:16

All laws, ordinances, resolutions or parts of the of the same that are inconsistent with the provisions of this resolution are hereby repealed to the extent of such inconsistency.

6:27

Move forward to full counsel.

6:28

Second.

6:29

Motion second forward to full counsel.

6:31

Any questions from the committee?

6:34

Yeah, uh, just layman's terms.

6:38

Well, it wasn't written in layman's terms.

6:40

Not at all.

6:41

Come on, this is one of the most simple things I've got.

6:43

Um so what has happened is that what y'all did previously, you incentivized to come build a state-of-the-art facility.

6:51

They are currently operating, they have about 70 employees.

6:54

I believe in uh recently they have implemented a second shift.

6:58

So things are going exactly as you hope they would.

7:02

For business reasons that are unrelated to their ongoing operation, they want to exercise the purchase option that was granted to them, so they're gonna unwind the pilot with respect to the real estate, they're gonna transfer it to a new entity and then lease it back.

7:22

But they were going to continue operation, nothing is gonna change with operation of the facility.

7:28

This is solely so that they believe for business reasons that this is a good option for them.

7:33

Um after this is all said and done, you're likely to see me back here requesting on behalf of the landlord that we re-implement the pilot for the remaining period.

7:43

So you granted them a 20-year pilot, they've used five of it.

7:50

This does not change anything on behalf of the city.

7:54

So there wasn't any liability on behalf of the city in the first instance, and this does not change that.

8:00

Still remains none.

8:03

It's basically like the the meeting we had the council meeting we had last week, or that was the very start of a new pilot program, and then this one they're five years into, and there's like, hey, we just want to make some changes.

8:18

Yep.

8:18

I mean, they're a good business, and they see um a benefit to doing this, and because y'all have incentivized them previously, they have to come and tell you what they're doing and request your assistance.

Discussion Breakdown — Share of Meeting
Parks and Recreation█████████████████████████████████████████████45%
Procedural████████████████████20%
Youth Programs██████████████14%
Personnel Matters█████████████13%
Economic Development████████8%
Summary of Proceedings

Jonesboro Finance & Administration Council Committee Meeting - May 26, 2026

The Finance & Administration Council Committee of Jonesboro, Arkansas, met on Tuesday, May 26, 2026, at 4:00 PM at the Municipal Center. The committee approved minutes, introduced several resolutions, and engaged in extensive debate over a pool usage agreement between two youth swim teams. Key outcomes included forwarding two resolutions to full council and postponing the pool agreement indefinitely to allow the teams to negotiate.

Consent Calendar

  • Approval of Minutes (MIN-26:045): The minutes from the May 12, 2026 Finance Committee meeting were approved unanimously (6 aye, 0 nay).

Discussion Items

RES-26:056 – Right-of-Way Easement from Arkansas State University

  • Sponsor: Engineering
  • The resolution authorizes accepting a permanent right-of-way easement from Arkansas State University for pedestrian and bicycle infrastructure improvements.
  • Committee Action: A motion to forward to full council passed unanimously (6 aye, 0 nay).

RES-26:058 – Escrow Deposit Agreement for Colson Caster LLC Bonds

  • Sponsor: (Not specified)
  • The resolution authorizes an escrow deposit agreement to defease bonds issued to support Colson Caster LLC, and to convey real property related to the bonds.
  • Mitchell Williams Law Firm Attorney Michele Allgood explained that Colson Caster LLC, which built a state-of-the-art facility and now employs about 70 people with a second shift, wants to exercise a purchase option to unwind the pilot program for the real estate, transfer it to a new entity, and lease it back. She noted the company has used 5 years of a 20-year tax pilot and that the city will likely be asked to re-implement the pilot for the remaining period.
  • Chairman Joe Hafner clarified that the council approved a new pilot program last week, while this one is five years in, and the company is simply seeking changes.
  • Committee Action: A motion to forward to full council passed unanimously (6 aye, 0 nay).

RES-26:059 – Facility Usage Agreement with Jonesboro Jets, Inc.

  • Sponsor: Parks & Recreation
  • The resolution proposes a 2026 pool usage agreement for the city’s only public pool, involving two swim teams: Jonesboro Jets (JETS) and Shark Wave Aquatics Team (SWAT).
  • Key Debate:
    • Councilmember John Street expressed disagreement with aspects of the contract but moved to forward it to full council for discussion. Councilmember Brian Emison seconded.
    • Councilmember David McClain asked for the administration’s stance. Chief Administrative Officer Brian Richardson said the administration proposed agreements to both teams, but when an agreement wasn’t reached, the matter was sent to the Public Services Commission for open discussion. The contract was drafted based on that commission’s guidance.
    • Councilmember John Street noted that historically, the pool was split 50/50 between the two teams. He argued that a proposed 70/30 lane split was inequitable and that heating costs should be prorated by lane usage.
    • Chairman Joe Hafner explained that the Public Services Committee recommended using AAU (Amateur Athletic Union) membership numbers to allocate lanes, with three verification dates over the summer so lane allocations could adjust if numbers changed.
    • Councilmember Dr. Charles Coleman criticized the involvement of an outside entity (AAU) and felt the city should simply split the pool equally (50/50) until both teams agree. He stated the process had become “about politics” rather than the children.
    • Councilmember John Street preferred giving each team five lanes and letting them work out any adjustments themselves, as had been done in previous years.
    • Chief Operating Officer Tony Thomas said the administration cannot negotiate the contract; the onus must be on the two teams to reach an agreement. He noted that both groups need to be in the same room to resolve the dispute.
    • SWAT Board Chairman Bryce Cook expressed “zero confidence” in the administration to reach a contract, alleging the process was “conceived in darkness.” He claimed that a meeting involving the parks director, city attorney, and Councilman Chris Gibson (who is a JETS parent) determined the lane reallocation. City Attorney Carol Duncan disputed this characterization. Cook also stated that SWAT had canceled a large swim meet due to the uncertainty.
    • SWAT parent Sara Beth Cook urged the committee to go back to the 50/50 arrangement used in 2022–2025, noting that the teams had previously cooperated on lane sharing.
    • Councilmember Ann Williams asked if the contract could be amended to 50/50 and then later changed if the two groups agreed. City Attorney Carol Duncan said she could not amend it without a written amendment.
    • Motion to Postpone Indefinitely: Councilmember John Street moved to postpone the resolution indefinitely, seconded by Councilmember Dr. Charles Coleman. The motion passed with 6 aye, 0 nay.
    • After the vote, Chairman Joe Hafner and City Attorney Carol Duncan clarified that postponing indefinitely kills the current contract, and SWAT may not have legal access to the pool without a signed agreement. Parks Director Jim Stearns later confirmed that, without an agreement, both teams would not swim.
    • Councilmember Dr. Anthony Coleman suggested using past contracts or a temporary 21-day agreement to allow both teams to swim while they negotiate. City Attorney Duncan noted that no contract is legally required for pool use. Chairman Hafner expressed hope for an agreement within a week rather than 21 days.
    • Chief Operating Officer Tony Thomas assured the committee that the administration wants kids to swim and will provide opportunities for both teams until an agreement is reached.

RES-26:044 – Lease with North Jonesboro Community Development Corporation (NJCDC)

  • Sponsor: Mayor’s Office
  • Status: Pending item from May 12, 2026.
  • The resolution authorizes the mayor to enter into a lease agreement with NJCDC for space at 911 Magnolia Road.
  • Committee Action: A motion to forward to full council passed unanimously (6 aye, 0 nay).

Other Business

  • Park Operations: Finance Director Steve Purtee reported that a schedule for bids will be returned on June 24, 2026.
  • Impact Fee Study: Chief Administrative Officer Brian Richardson updated the committee on an impact fee study that began eight months ago and is now nine months in. He said the consultant recently requested square footage of a public works facility, and the committee will reconvene to review results. He indicated the study is unlikely to produce a “windfall,” but the committee needs a decision on whether to continue.

Key Outcomes

  • Approved minutes from May 12, 2026.
  • Forwarded to full council: RES-26:056 (ASU easement), RES-26:058 (Colson Caster bond defeasance), and RES-26:044 (NJCDC lease).
  • Postponed indefinitely: RES-26:059 (pool usage agreement with JETS). The motion passed 6-0. The council expects the two swim teams to negotiate directly and return with a mutually agreed contract.
  • No public comments on items not already discussed.
  • Meeting adjourned.

Attendees

Present: Joe Hafner (Chairman), John Street, Anthony Coleman, David McClain, Ann Williams, Charles Coleman, Brian Emison (7 total).

Key Speakers

  • Michele Allgood (Mitchell Williams Law Firm) – explained Colson Caster LLC bond defeasance.
  • Brian Richardson (Chief Administrative Officer) – discussed swim pool contract process.
  • Tony Thomas (Chief Operating Officer) – outlined need for swim teams to reach agreement.
  • Bryce Cook (SWAT Board Chairman) – opposed indefinite postponement.
  • Sara Beth Cook (SWAT parent) – urged return to 50/50 lane split.
  • Jim Stearns (Parks Director) – confirmed both teams would not swim without an agreement.
  • Steve Purtee (Finance Director) – reported on bid schedule.
  • Carol Duncan (City Attorney) – provided procedural guidance.

Meeting Transcript

All right, good afternoon, everybody. It's four o'clock. I'm gonna call today's finance administration council committee meeting to order. Um please go ahead and record record your attendance. Text ups approval of minutes from the Tuesday, May 12th, 2026 meeting. Move to approve listeners noted change. Second. Motion second to approve. Um, any question or comments on the minutes as presented? If not, please vote on whether or not to approve the minutes. All right, we'll go into new business. First step is resolution 26056. It's a resolution by the city council of the city of Jonesville, Arkansas to accept a permanent easement. Um I'm sorry, a permanent right-of-way easement from Arkansas State University for the purpose of the constructing and maintaining pedestrian and bicycle infrastructure improvements, whereas the city of Jonesboro hereby is desired to accept the following described right away for the purpose of constructing and maintaining pedestrian and infrastructure improvements. Legal description follows. Move forward to full council. Second. I must take forward full counsel. Any questions from the committee? Anything from staff? Anything from the public in attendance. If not, please record your vote on whether or not to forward resolution 26056 to full council. All right. A resolution to authorize the execution and delivery of an escrow deposit agreement in connection with the defeasance of bonds issued to support Coast and Castro LLC and its affiliates to authorize the conveyance of real property related to the bonds and for other purposes, whereas the city previously issued its 11 billion dollar taxable economic development revenue bonds. Um series 2022 A and its 4 million taxable economic development revenue bonds series 2022 B, and collectively with the Series 2022 A bonds, the defease bonds pursuant to the terms of a trust indenture date as of April 19, 2022 between the city and first security bank, and whereas the contemporaneous with the issuance of a of the defease bond. Michelle, did you write this? Um of the defease bonds, the city issued is not to exceed $9 million taxable economic development revenue bonds series 2022 C, and together with the defease bonds, the 2022 bonds, and whereas proceeds of the 2022 bonds were loaned to Coast and Castro LLC and its affiliates to finance acquisition and construction of manufacturing facilities, infrastructure, and improvements, and the acquisition and installation of facilities and equipment for the development, manufacture, warehousing, and distribution of casters and wheels located at 2121 Barn Hill Road, Jonesville, Arkansas, whereas contemporaneous with the issuance of the 2022 bonds, the company granted a um one or I granted a mortgage to first security bank as collateral agent to secure the company's obligations under guarantees from the Arkansas Development Finance Authority and the Arkansas Economic Development Commission supporting the 20 2022 A bonds and the company's obligations with respect to the 2022 bonds and two implemented a sell lease back transaction with the city in order for the project to be eligible for ad valorum property tax abatement, and whereas the project was constructed and is operational, and whereas the company is exercising its option to repurchase the real estate and buildings comprising the project for a price that is sufficient to defease the series 2022 bonds and the series 2022 B bonds. And whereas the city, the trustee, and the escrow agent will enter into an escrow deposit agreement to make adequate provision for the retirement at maturity and upon redemption prior to maturity on April 1st, 2027 of the defease bonds. And whereas this resolution is adopted to authorize the execution of one or more Ds to transfer title to the reference real estate upon the exercise of the option in compliance with the provisions of Arkansas Code annotated 14-54-302 relating to the transfer of its real property owned by the municipal municipality. Now therefore be it resolved by the city council of the city of Jonesville, Arkansas that section one there be and is hereby authorized the execution and deliverance of the escrow deposit agreement by and between the city trustee and first security bank as escrow agent and the mayor and city clerk are hereby authorized to execute, acknowledge, and deliver the escrow deposit agreement for and on behalf of the city. The escrow deposit agreements hereby approved substantially in the form submitting submitted to this meeting. Section two, the mayor and city clerk authorize execute, acknowledge, and deliver all papers, affidavits, statements, documents, certificates, deeds, releases, and other instruments that may be required to evidence the transfer of title to the real estate and building to release or consent to the release of liens and encumbrances occurring or related to the fees bonds and to satisfy the requirements of the title company assisting with the closing of the repurchase repurchase of such property. All such instruments shall be subject to the review and approval of the city attorney prior to execution and delivery. Section three, severability. In the event any title, section, paragraph, item, sentence, clause, phrase or word or mispronunciation of this resolution is declared or a judge to be invalid or unconstitutional, such declaration or adjudication shall not affect the remaining portions of the resolution, which shall remain in full force in effect as if the portion so declared were a judge invalid or unconstitutional were not originally part of the resolution. Section four, repealer. All laws, ordinances, resolutions or parts of the of the same that are inconsistent with the provisions of this resolution are hereby repealed to the extent of such inconsistency. Move forward to full counsel. Second. Motion second forward to full counsel. Any questions from the committee? Yeah, uh, just layman's terms. Well, it wasn't written in layman's terms. Not at all. Come on, this is one of the most simple things I've got. Um so what has happened is that what y'all did previously, you incentivized to come build a state-of-the-art facility. They are currently operating, they have about 70 employees. I believe in uh recently they have implemented a second shift. So things are going exactly as you hope they would. For business reasons that are unrelated to their ongoing operation, they want to exercise the purchase option that was granted to them, so they're gonna unwind the pilot with respect to the real estate, they're gonna transfer it to a new entity and then lease it back.

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