The Fort Chaffee Redevelopment Authority (FCRA), which oversees the Chaffee Crossing land development, reported “more than $8 million” in approved sales on Thursday (June 21), according to Executive Director Ivy Owen.
The only problem: hardly any of the transactions have closed, leaving a gaping loss in the group’s operating budget for 2012. According to the statement of operations for the first five months of the year, the FCRA had estimated $2.237 million in total income. Thus far, total income rests at $522,536, against total expenses (operating, capital expenditures) of $1.372 million.
Owen notes that “when the properties close,” the number will look much different. In fact, should the full $8 million hit the books before the end of the year, the FCRA will have beaten expectations of $5.371 million in total income by around 33%.
“In the next three months, I know you’ll see a significant increase in income,” Owen told board members and those in attendance at the group’s monthly meeting on Thursday.
Along with the 2012 deficit, the Deer Trails Golf Course, which the FCRA took over Jan. 1, 2012, is showing a loss of almost 34% compared to what was expected for the year.
The FCRA forecasted a $67,500 operating loss in the last quarter of 2011. Thus far, the facility has reported a “punitive net loss of $102,000,” according to Bob Bradford, chairman of the FCRA’s real estate review committee.
Owen said the losses are higher than anticipated due to capital improvements, noting that membership to the facility was at “147 members when we took over. Last time I checked, which was about 10 days ago, we were up to 192.”
Owen said he anticipates “200 by July 1 and 250 by the end of the year,” also noting that “if someone wants to buy it, we would certainly entertain that idea, especially to someone with golf course experience.”
“The goal is to keep it as an amenity as long as we can, because I’m convinced it brings people out here that wouldn’t normally be out here. It is losing money, but I think at the end of the year, our loss will be much less than our anticipated loss,” Owen said.
Concerning the planned River Valley Sports Complex, the FCRA officially conveyed 62.9 acres to the city of Fort Smith for use in the project. The land will feature eight softball fields when completed with an option that if the project isn’t finished in five years, it will revert back to FCRA.
Along with that conveyance, the Learning Fields received an additional 2.81 acres.
On property sales, ERC Land Development Group purchased 9.3 acres for $139,500 from the FCRA for an area located at the base of McClure and Massard Roads. Also, the FCRA granted ERC a 2-year right of first refusal period for 17 acres of land for the same area.
Shire Inc., purchased 26 acres at $260,000 on Chad Colley adjacent to Stick Lake and as part of Ben Geren Park. The company plans for the land to be used as residential development.
Finally, Fort Smith citizens Phillip and Janice Taylor purchased one acre at the Northwest Corner of Collier Street and Roberts Boulevard for $30,000.
The next regular meeting of the FCRA will take place on July 19.