PRAIRIE GROVE -- Prairie Grove School Board voted Monday to purchase the Arvest Bank property on Buchanan Street for $600,000.
Closing date set for Thursday (April 20), or shortly thereafter.
The building will house the district's administrative office and other district departments.
Allen Williams, superintendent of schools, presented a Bargain Sale Real Estate Contract and explained the contract is considered a bargain sale because the purchase price is below appraised value.
The contract states that both parties agree the value of the property is $920,000, subject to a final updated appraisal. The difference in purchase price and the appraisal will be considered a charitable donation from Arvest to the school district.
Any personal property left on site by Arvest also will be considered a charitable donation to the school district.
The building is at 102 E. Buchanan St., in downtown Prairie Grove. The purchase includes slightly more than half an acre of land, improvements, and about one acre with a parking lot and unimproved property north of the parking lot.
The contract has a deed restriction that prohibits the use of the property as a bank or related business for 35 years from the purchase date.
School Board member Shawn Shrum pointed out the restriction was for a long time.
"If for any reason the district wanted to sell it, one party would be off the table," Shrum said, adding, "If you can't sell it to a bank you're limited in buyers."
Board member Jerry Coyle said he was not concerned about the deed restriction.
"I'd say it wouldn't be our problem," Coyle said, bringing laughter from those agreeing they wouldn't be around as board members in 35 years.
Williams said he understood the restriction and saw it as a no-competition clause.
J.C. Dobbs, another board member, said he did not believe another bank would be interested in the building if the school decides to sell it.
The board also approved a lease agreement to lease the building back to Arvest until the bank constructs and moves into a new branch at 1031 Sundowner Road, near the bypass. Arvest will pay $6,000 per month.
The lease agreement takes effect when the title is conveyed to the school district and continues through July 31, 2018, if necessary.
Arvest will be responsible for keeping the premises in clean condition and for minor repairs. Prairie Grove School District will be responsible for all other maintenance, repair and replacement. Arvest will pay property taxes and the school will be responsible for insurance against loss or damage by fire and other risks.
General News on 04/19/2017