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Bentonville City Council approves $4.65 million purchase of Benton County courts building


Bentonville City Council approves $4.65 million purchase of Benton County courts building

BENTONVILLE -- Another piece of the city's Quilt of Parks project is close to falling into place.

The City Council voted 8-0 Tuesday to authorize the city to buy Benton County's Division VI circuit court property -- 0.6 acres -- using more than $4.65 million in grant and loan money. The purchase will include the building and the adjacent 24-car parking lot at 221 S. Main St.

The council also voted to accept a $2 million grant from the Walton Family Foundation -- as well as authorize the city to enter into a loan agreement with the foundation in the amount of $2.65 million plus closing costs -- to cover the price of the property. Both items passed unanimously.

David Wright, Bentonville parks director, has said when the city started working on the Quilt of Parks about five years ago, it hoped to work with the county on an expansion of Dave Peel Park that's part of the project. The expansion would anchor the city's planned pedestrian-only promenade on A Street to the south with a new plaza area that would replace an existing parking lot adjacent to several restaurants. The county owns about 30% of the parking lot.

The city had expressed a desire to rearrange the parking lot to maximize the space, according to Wright. However, Benton County Judge Barry Moehring decided the county's share of the lot should be sold with the circuit court building. Wright said the parking lot is critical for the success of the Quilt of Parks.

Wright wrote in a memo included in Tuesday's meeting packet the city will perform a survey and split to create two lots on the property after taking ownership of it. One lot will include the building and adjacent land while the city will renovate the area east of the building housing the parking lot to include the Quilt of Parks.

The city will use the building for public use for at least the next 12-18 months as it finishes building the Quilt of Parks, according to Wright. City staff will occupy the building due to the city needing some temporary space. The city administration and council will be able to evaluate the property for possible long-term uses as the Quilt of Parks project begins to wrap up late next year.

"While that use could certainly include public use, it could also be utilized for a future economic development project," Wright wrote. "Regardless, the city will be in position to utilize the building/property to best accommodate the city's long-term needs."

Mayor Stephanie Orman said the city would like to bring its legal team together at the Division VI building. She noted the city wants to do some cross-training with the Legal Department, which is challenging under current circumstances, with the employees spread among separate facilities.

Orman said the city is looking at bringing another department to the facility as well, though it hasn't worked out the details yet.

The city will have five years to pay off the loan from the Walton Family Foundation, according to Wright. The city will pay off the interest-free loan in three, equal installments annually beginning in 2027 and ending in 2029 with money from its general fund.

Wright estimated Tuesday the city will close on the property anywhere between four and six weeks.

Benton County

The Benton County Quorum Court approved authorizing the sale of the Division VI circuit court property to Bentonville at its meeting July 25.

Moehring has said the county's goal is to sell the Division VI circuit court building -- along with its Division II circuit court building at 201 N.E. Second St. -- to build two new circuit court facilities at the county Juvenile Justice Center. The Division VI property's value has been appraised at $4.65 million while the Division II building has been appraised at about $6.5 million.

"We have a critical need for additional criminal court facilities," he said. "Our current Division Two court facility (the Old Post Office) is antiquated and undersized for our needs. We are also seeking an additional circuit court judgeship that will likely have a mostly criminal court docket, and we have no facilities currently for that judge."

Moehring has said Benton County will attempt to acquire another circuit court judge position in the 2025 Arkansas legislative session, who would then be elected in 2026 and sworn in Jan. 1, 2027. The two new courtrooms would house the Division II Circuit Court judge and the new judge -- Division VIII.

The county has proposed an expansion of its Juvenile Justice Center and the adjacent Juvenile Detention Center, estimated to cost more than $15.8 million total. Melody Kwok, county communications director, has said the project is slated to break ground either late this year or early 2025 if the Quorum Court approves it and the sales of the Division II and Division VI circuit court buildings are finalized.

Moehring has said along with two new courtrooms, the project would also provide more office space for both the Benton County Prosecuting Attorney's Office and Juvenile Probation Office at the Juvenile Justice Center, as well as public space. The center would be renamed to reflect these changes.

The project would add eight rooms and 12 beds to the Juvenile Detention Center and remodel the facility's kitchen.

The remaining money for the project after selling the two circuit court buildings -- about $4.85 million -- would come from the county's capital projects fund, according to Moehring.

Kwok has said the Division VI Circuit Court will be relocated to the first floor of the county Administration Building if the sale of the property goes forward.

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