Voting Underway in Conway Bond Rededication Special Election

Early voting in a Sept. 9 special election is underway in Conway, with voters considering whether to rededicate a 1/8-cent sales tax for various road projects, including two tied to a large retail development.

Voters will cast ballots on two bonds in the election. The first is for the issuance of refunding bonds, not to exceed $7.5 million, which will cover debts already on the books for the sales tax, currently set to expire in 2022.

The second is for the issuance of capital improvement bonds, not to exceed $21 million, to finance the street improvement projects.

The City of Conway could not issue the capital improvement bonds without first authorizing the issuance of refunding bonds, so the first issue bears just as much importance as the second. If everything is approved by voters, the new estimated bond payoff date is 2044.

The bond would finance three road projects around Conway, including two directly tied to the proposed Central Landing, a mixed-use redevelopment of the 151-acre municipal airport.

Those two projects are an overpass that would cross Interstate 40 to connect the Conway Commons with Central Landing, and a four-lane boulevard connecting Central Landing with Oak Street. The projects are seen as a way to relieve traffic on Oak Street, a major thoroughfare in Conway, and provide access to two major retail centers.

The other project would address the new southern interchange in Conway and its connection to Sturgis Road.

If voters approve the bonds, the city expects to free up enough general street improvement dollars to replace two stoplights on Dave Ward Drive, east of I-40, with roundabouts, which would directly affect the proposed Lewis Crossing shopping center, to be located at the southeast corner of the I-40, Dave Ward Drive intersection.

The completion of the street improvements is even more important for Central Landing, a joint venture by Conway Development Corp. and Jim Wilson & Associates of Montgomery, Alabama. The pending $6.1 million sale of the land is contingent upon the city providing four-lane access from Central Landing to both Oak and Harkrider streets, as reported in February by the Log Cabin Democrat.

The $6.1 million from the pending sale will be used as funding for the new $30 million airport in the Lollie Bottoms.

“I’m not prepared to say that the deal evaporates if this doesn’t pass, but it will almost definitely delay things by a year or more, which would be lost revenue the city could not regain,” Jamie Gates, senior vice president of the Conway Area Chamber of Commerce, said. “Everyone would be in the position of trying to keep tenants on the line while we come up with alternate financing.”

Arguments for the Bond Rededication

The rededication of bonds is not something new in Conway. 

According to Gates, the bonds have been around since 1987 and have been rededicated a few times as Conway has grown and seen increased transportation needs.

In an effort to round up support for the latest attempt at bond rededication, the Conway chamber has started a Facebook page and released fliers to the public that highlight the benefits of passing the rededication.

Included is an additional $2 million in new city sales tax revenue, and more than $500,000 for Faulkner County. 

Gates said those numbers could be expected within three to five years from now, assuming both retail developments are completed.

More: View the Conway Chamber’s flier here and FAQ handout: Page 1 and Page 2.

The chamber’s informational piece also argues the two large retail projects — Central Landing and Lewis Crossing — would create 850 jobs, nearly 1 million-SF in combined retail and living space, and establish Conway as a regional shopping destination.

Dillard’s Inc. of Little Rock has signed on to be the anchor store of Central Landing, Sam’s Club has signed on at Lewis Crossing.

It’s also believed that if both retail developments are completed, they could bring in more than $100 million in sales, and represent a 7-10 percent increase in sales tax revenue. In turn, the bond payoff date could be moved up.

“The most likely scenario is these bonds will be called early because of an increase in revenue,” Gates said.

Arguments Against the Bond Rededication

Since two of the road projects the bond would finance are directly tied to Central Landing, some in Conway see it as nothing more than a private developer reaping the benefits of taxpayer money.

But Gates said both projects serve a larger purpose.

“[The overpass] has been identified by the city as a transportation goal since 2009,” Gates said. “A lot of people are going down Oak Street to try and get to the Conway Commons. This overpass is a solution at least as much as it is an amenity to Central Landing.”

Speaking of the four-lane boulevard, Gates said, “it’s obviously beneficial to Central Landing, but it’s in anticipation of traffic issues we think will come along with [Central Landing].”

There’s also concern that the city could put too many resources into a few projects, while other road developments are ignored. But Gates said Conway has always done well combining cash and bonds to meet transportation needs.

“This is a project that clearly has a revenue and retail play involved,” Gates said. “This transportation project gives more direct payback than any other bond issue.”

Gates said the decision to hold a special election on the issue instead of waiting for the general election was all about timing.

“We weren’t behind schedule, but this was about as late as we could do it to meet our goal to start construction in the spring,” he said. “You have to have the election, have the bonds go to market, then deal with construction drawings and planning and all those things.”

In addition, Gates said the city and the developer needed two full building seasons in order to open in fall 2016.

“That’s an ambitious enough timeline,” he said.

Some have questioned the additional cost of the special election, especially so close to the general election. Faulkner County Clerk Melinda Reynolds has estimated the cost of the election at $2,500, according to a deputy clerk. 

“It could be a little bit more, and it could be a little bit less, but [Reynolds] estimated it at about $2,500,” the deputy clerk said.

Voting is open at the Faulkner County Courthouse at 801 Locust St. from 8:30 a.m. to 4:30 p.m. through Tuesday.