LINCOLN -- The city of Lincoln will hold a special election May 9 to ask voters to allow the city to pay off the public library bond issue and then issue new bonds to demolish the community building on Lincoln Square and build a new one in its place.
The ballot also will ask voters to continue a 5/8-cent local sales and use tax with proceeds to be used to refund the library debt and pay off a 2023 community building bond issue.
Lincoln City Council on Feb. 21 unanimously passed an ordinance calling the May 9 special election. If approved by voters, the city will refund the $450,000 owed on the library and issue a new bond issue of $3.8 million for capital improvements on Lincoln Square.
The 5/8-cent local sales tax has a sunset clause and is scheduled to be dropped when the 2012 library bond issue is paid off but city leaders are asking voters' permission to continue the tax for another community project.
Kevin Faught with Stephens Inc. financial firm in Fayetteville said Stephens would be the underwriters for the bond issue transactions if voters approve the questions on the ballot.
Faught said the ballot will have two questions and both must be approved for the city to move forward with the project. If both questions are approved, the bonds would be issued in July, according to Faught.
The ordinance approved by the council states that if both questions are approved, the existing tax will be abolished at the proper time so that the existing tax and the new 2023 5/8-cent sales tax will not be in effect at the same time.
The current community building has been deemed a public hazard and been closed to the public since November 2022 because of major structural problems. After inspecting the building, a structural engineer reported the building was not safe to occupy.
City Council member David McBride said he wanted to reassure the community that the city would renovate the community building if it was at all possible.
McBride said his original first priority was to save the community building on Lincoln Square but after looking at the building's major structural problems, he said he realized there was "no way" to keep it.
Ideally, McBride said, someone would step up and offer the city millions of dollars to save the building but he didn't see that happening.
Mayor Doug Hutchens said renovating the community building is not a feasible and practical use of the taxpayers' dollars.
"This is what progress looks like," Hutchens said. "Sometimes you have to give up the old to get the new."
The city has entered into a contract with WER Architects for a plan on replacing the building. In a preliminary opinion, WER estimates it would cost around $55,000 to abate and demolish the current building and from $1.5 million to $1.7 million for a new community building.
In other action, the council approved two appropriation ordinances last week.
One ordinance authorized the mayor to enter into a contract with Orr Construction for a price not to exceed $293,000 for a project to complete water bores. Orr Construction was the only company willing to provide an estimate to bury four water mains that are partially above ground and at risk for damage or failure, according to the ordinance.
Hutchins said water bores are needed because of problems from flooding last year. The city will use money from its Water Utility Account to pay the contract.
The second ordinance appropriated $24,400 to purchase 10 sets of turnout gear for Lincoln Fire Department. The city has applied for a $15,000 grant from the Arkansas Rural Community Grant Program and, if received, this grant would be used to pay the balance for the turnout gear. The total cost of the 10 sets is $39,400.
The council also approved a resolution authorizing the mayor to execute documents for funding from the Arkansas Natural Resources Commission and approved a second resolution to amend city code that designates five places where the city posts its ordinances for the public to view. These five places are the city courts building, city water department, public library, Lincoln Post Office and Lincoln Fire Department office. (The community building was replaced with the fire department).