Northwest Arkansas Times reports on $60 million offer for FHS

 
Teeming with issues : Developers top UA’s offer for 40-acre FHS campus
BY BRETT BENNETT Northwest Arkansas Times
Posted on Friday, June 27, 2008
URL: http://www.nwanews.com/nwat/News/66578

A limited liability company called Campus Building Group has offered $ 60 million for the Fayetteville High School campus.
The amount is $ 10 million more than a $ 50 million offer from the University of Arkansas. The Fayetteville Board of Education offered the property to the UA, which borders the 40-acre high school property, for $ 59 million.
The school board’s plan has been to sell the current campus to help subsidize construction at a new site. The board has also authorized Superintendent Bobby New to negotiate a purchase of 73 acres along Morningside Drive for a new high school site, but New said there were no updates on that to report.
Campus Building Group attorney David Fisher spoke about the group’s proposal and plans for the campus at the Board of Education meeting Thursday. He indicated the plans would be to develop a student housing / commercial project on the campus.
Reading from a statement, Fisher said, “ It is CBG’s belief that the Fayetteville High School campus is truly a rare jewel and is definitely the finest piece of property in all of Northwest Arkansas. Its proximity to the (UA ) campus makes the property extremely desirable for upscale student housing, as well as for opportunities in commercial and retail activities. ”
On Wednesday, Fisher submitted a written request for a 90-day option on the property with a $ 60 million sale price. An option means the company would have time to evaluate the property and develop sale contract terms. The school board would not be able to sell it to someone else dur- ing the 90 days.
“ It gives them a chance to look at the possibility, do due diligence and whatever you need to do, ” said Rudy Moore Jr., attorney for the school district.
No action was taken on the request. Board members John Delap and Becky Purcell, who cast the lone dissenting vote against offering to sell the campus to the UA, were absent.
New said Lisa Morstad, the district’s chief financial officer, attempted to contact UA Vice Chancellor Don Pederson to inform him of the $ 60 million offer.
The superintendent said his last face-to-face meeting with incoming Chancellor G. David Gearhart was on Monday and that Gearhart indicated at that time the $ 50 million was a firm offer. The school board decided to delay action on the UA’s offer until more details about contract terms could be worked out.
New said the offer from the private entity provides another option the board can consider. He made a comparison to a restaurant menu.
He said he was first contacted by the group about a month ago but held off making any announcements about it to evaluate the seriousness of the group. In an interview before the meeting, New said he was convinced Campus Building Group was making a legitimate and serious offer.
“ It is CBG’s hope that this project will allow them to create a great new development next to the university campus to service the housing, safety and entertainment needs of our university students for years to come, ” Fisher said at the meeting Thursday.
He declined to identify any of the members of Campus Building Group.
According to the Arkansas Secretary of State’s Office, the group’s office is listed as 1589 Electric Ave. in Springdale. That is also the address listed in several sources for a company called Alliance Construction Group.
Springdale developer Gary Combs is listed as the registered agent for Alliance. The address listed with the state is ©5 Electric Ave., which is also the address of another Combs company, Basic Construction Co.
Combs is a developer who has been involved in several local companies and projects, including Basic Block Group, Waterford Estates on Arkansas 45 in Goshen and Pinnacle Hills in Benton County. Lately, he has garnered headlines with his plans to build Diesel Downs, a sprawling truck stop at Interstate 540 and Wagon Wheel Road.
Contacted Thursday evening, Combs referred all inquiries to Fisher and said he couldn’t comment on Campus Building Group.
New said he was excited about the offer because it represents an additional $ 10 million toward a new high school project that would not have to be paid by taxpayers.
“ I’ve characterized my administration as kids first, taxpayers second, ” New said.
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