Jim Jackson and Lisa Ferrell are moving ahead with their plan for a new neighborhood in downtown North Little Rock. Change font size

Lisa Ferrell and her husband Jim Jackson's dream riverfront neighborhood development project in downtown North Little Rock still faces some significant hurdles.

The infrastructure along the Arkansas River just west of the Broadway Bridge is old and to move the development forward the couple needs redevelopment bonds.

The good news for them is in December, the city of North Little Rock designated the approximately five-block area that will be called Rockwater Village as a redevelopment district, which means it can receive tax increment financing. The North Little Rock City Council is expected to vote next month on funding the TIF bonds.

Ferrell said she doesn't know how much money she'll need for the work on the streets and utilities. But she knows without the TIF funding, Rockwater won't be developed.

Her vision for the approximately 60-acre Rockwater is to mix single family and multifamily homes within walking distance of shops and commercial space.

"The infrastructure in the area is aged," Jackson said. "The sewer lines are old. The water lines are old. The drainage is old or non-existent."

The project has the support of North Little Rock Mayor Patrick Hays.

"I don't think that there's anyone that would argue that developing in an urban environment is much more difficult and much more costly than developing in a suburban or rural environment," Hays said. "And based on that premise, any financial tool that can assist in facilitating and funding an urban development will be helpful."

While the area will see more taxes collected because of the improvements, the amount of tax paid to tax agencies is frozen. Tax increment financing allows the increased property taxes due on improved real estate to be diverted to pay for infrastructure in the designated district, offsetting costs that would otherwise fall on the developers.

One projection shows Rockwater should be able to borrow between $7 million and $7.8 million with TIF bonds and pay it off over 25 years, according to an October study by the University of Arkansas at Little Rock's Institute for Economic Advancement, which the city of North Little Rock commissioned.

The project also would be an economic boost to the city, the study said.

Construction on the entire development could take five years, and the estimated construction cost is $115 million, according to the UALR study.

If the project goes according to plan, Rockwater would add another amenity to downtown North Little Rock, said Michael Drake, Main Street director for the city of North Little Rock.

"It will be a wonderful asset to downtown," Drake said. "I can't imagine it doing anything but increasing the property values along the river, including downtown."

The project also will encourage people to move downtown, he said.

[ Link to this article ]