FORT SMITH, AR - During a meeting on Tuesday, July 28, several members of the Fort Smith Board of Directors questioned a more than $10 million financing plan to redevelop property in south Fort Smith into a Fort Smith Police Department (FSPD) training center and new precinct.
Board members are concerned with prioritizing city general fund revenue, primarily franchise fee revenue, to build new facilities over more officers and better pay for those officers, TalkBusiness reported.
The board approved spending $2.85 million to buy the former Crain-Kia dealership in south Fort Smith in March 2024. The initial plan was to use the property for a police precinct and consolidated maintenance facility. The more than 4.4-acre property at the former dealership has three structures.
Initially, two structures were to be used for a FSPD precinct and training facility. A third structure was set to become a consolidated maintenance facility for all city vehicles.
During a March 2026 board study session, the board consensus was to review design and costs for a plan that would develop only two of the three buildings, and do the work in two phases. The estimated cost for both phases, according to Fort Smith-based MAHG Architecture, is $9.925 million.
On Tuesday, Fort Smith Chief Financial Officer Andrew Richards presented details on a $10 million bond issue with a 20-year finance term based on a 4.5% interest rate. The interest on a 20-year finance plan is estimated to be $2.418 million. That option would have an estimated $753,000 annual debt-service payment.
The debt service payment would come from the FSPD operating budget, Richards said. Director Christina Catsavis opposed the plan, noting that the city will pay almost $2.5 million in interest over the life of the bond, and suggested city and police department officials develop a long-term plan that is more affordable.
"It’s hard for me to reconcile that in the same year that the rest of the board decided to cut police and fire (budgets), that we’re considering this,” Catsavis said. “This is a multi-decade claim on these franchise fees. … I don’t know that this is necessary at this time. This is something we should plan for long term."
Directors George Catsavis and Andre Good also questioned the spending plan and timing. In response to questions from Director Jarred Rego, Fort Smith Police Chief Danny Baker said the training facility and a southern precinct have long been department plans.
He said numerous street improvements, including the completion of Interstate 49 through the Fort Smith metro and widening of Highways 45 and 255, are pushing residential, commercial and industrial development south.
"This has been a long-term stated need for the future of Fort Smith,” Baker told the board. “It has been part of our comprehensive plan. It’s been part of our capital-improvement plan since before I was the chief of police. This was not a fly-by-night idea. We’ve been very open and transparent with plans about this."
Baker also noted he doesn't believe the financing plan will hinder the department's ability to provide the resources and funding needed to recruit and retain officers.
Baker told the board that if they decide to wait several more years to save up money, then they need to sell the property. He said the department can't afford continued maintenance, and the structures will continue to deteriorate, increasing redevelopment costs.
In an interview after the board meeting, Baker said a decision to move forward with property redevelopment needs to be made "within the next six months." He said there is no secondary location for a precinct in the south part of the city.
"That’s the need,” Baker said. “We need to get ahead of that growth to the south, and we need to do that sooner rather than later."
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