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