Bank building purchase moving forward

— GENTRY -- With all but one of the council members present, the consensus at a special working session of the council on Thursday evening was to move forward with negotiations to purchase the building and property which once housed a Centennial Bank branch and, before that, Liberty and Signature Bank branches.

Kevin Johnston, Gentry's mayor, told the council that the building and property, appraised at more than $700,000, had been offered to the city for $600,000 and could be used to house the police station with very little modification.

Johnston suggested that the only modification to secure the building would be a wall separating the area where officers and records are kept from the general public entering the building at the main-entrance doors on the south. Discussion followed about ways to secure the area without erecting a wall which would hide the beauty of the inside of the structure from public view, and Johnston said he would consult with Keith Smith, Gentry's chief of police, to determine what security measures would be required to use the building for a police station.

Johnston also told council members he would research and come up with a cost estimate for any necessary building modifications and report back to council members.

Shared with council members on Thursday was information from a needs analysis for the police department prepared in 2010. At that time, it was estimated that the department needed at least 2,200 square feet of secure space, a secure place to store evidence and records, parking for four to six vehicles and private and secure office space for the chief, his officers and clerk. The analysis also included growth projections out to 2025 and needs at that time. The city has already exceeded population growth projections, Johnston said, making additional space for the police department more necessary.

Currently, the police department shares a building with the Benton County Circuit Court West and on court days has to make parts of the police station open to the public. The current facility lacks in security, office and interview space and in space for evidence and records storage. On court days, police vehicles sometimes get blocked in or police vehicles have nowhere to park at the station.

In an analysis prepared by city finance director Tonya Carney, positives and negatives of the building purchase were listed as follows:

POSITIVES

• More space for overall (police) department needs, including a functional break room, private offices, public space, public restrooms, employee restrooms and a storage room.

• Large lots with a large building for future growth.

• Security cameras in places.

• Vaults (two of them) that could provide evidence storage and have other possible uses.

• Room and filing cabinets that would allow easy access for office staff.

• Covered outdoor area (for parking).

• Furniture that could be utilized included in the purchase price.

• Priced below appraisal and in a desirable location.

• Possible court expansion and retention (at its current location in Gentry because of space vacated by the police department).

NEGATIVES

• Non-budgeted funding.

• Limited revenue sources.

• Police department renovation costs.

• Possible court renovation costs.

Another possible negative raised by Councilman James Furgason was taking the building off the tax rolls and the potential loss in tax revenue which might have been possible if the building was purchased by another bank or business. The loss in tax revenue, however, was viewed to be minimal and the plus of keeping the court in Gentry by providing additional space now used by the police department was thought to outweigh any potential loss.

Furgason called the Centennial Bank property an "excellent building," adding that it "has office space to meet the police department's needs."

Councilwoman Janice Arnold suggested the city purchase the building, putting down half the cost and financing the remainder for five years (the maximum amount of time municipalities are permitted to obtain private financing under the law) and making the payments with the $5,000 per month savings the city will have when another monthly payment the city currently has for that amount sunsets in September.

Other suggestions included financing the purchase with water department funds and paying back the water department, using the drive-up-window area for the water department, a lease to buy contract with Centennial Bank and looking into other financing options. The mayor and council members said the city attorney would need to be consulted about the legality of the suggested options under Arkansas law.

Price negotiations with the bank were also suggested to see if the city could purchase the building at a price lower than the current offer and at least enough lower to pay for any needed renovations to make the building secure for use by the police department.

"I think we are all agreed we need a new building for our police department and we wanted to build one next to the fire department until this building became available," said councilman Kyle Jordan.

The city had in the past discussed future plans to build a new police station adjacent to the fire station on Third Street, but cost estimates to do that would more likely be closer to $250 per square foot, according to Johnston. The current building offer would put the police station in a good location and meet the department needs well into the future at a cost of approximately $108 per square foot.

Furgason said he would like to see city hall and the water department remain at their current Main Street location because it keeps them in the center of Gentry's population area. He said the city may wish to revisit that if the city should in the future experience large population growth on the east side of Arkansas 59 Highway.

Arnold also raised the possibility in an email of putting city hall in the bank building and moving the police station to the current city hall. Johnson pointed out that the current city hall has less space than the current police station and would require similar measures for security purposes.

Johnston said having the water department at city hall makes it easier for him and for Carney to cover for the water clerk when she goes to lunch or takes a break, something which would likely not work if the water department and city hall were at different locations.

Johnston said he hoped he could work with Centennial Bank and bring the matter back for council action at its Sept. 8 meeting (the regular meeting will be held at 6:30 p.m. on Sept. 8 because of the Labor Day Holiday on Sept. 7).

General News on 08/12/2015