Update on commercial development at former Alexander Human Development Center

As the old saying goes, “Rome wasn’t built in a day.” That applies to commercial developments as well.

Before the end of every Alexander council meeting the public is offered the opportunity to speak to the mayor, council members and other city officials concerning problems or other issues important to the individual. It’s been several months since anyone has attended a meeting wanting to address an issue, but the June 17 meeting broke the run of public silence.

A resident, whom shall remain nameless, had a list of questions concerning the former Alexander Human Development Center (AHDC). Claiming to have heard from residents about the proposed commercial development on that site, the main issue cited boils down to the lack of visible progress on the development.

First some history.

AHDC closes;

The property along Highway 111 was originally built as a tuberculosis sanitarium for African-Americans. Eventually it was converted into a home for adults with special needs that required care and training from professionals.

A statewide lawsuit concerning the treatment and facilities provided to the clients was filed and resulted in the state shutting down all human development centers. Residents in these centers were moved into apartment-like settings. The Alexander center was closed in 2010.

Pathfinder, Inc. now provides the life-skills training and housing to anyone needing those services. Their state-wide offices, and apartments for local residents, are in the wooden buildings at the southeast corner of the property.

Arkansas makes an offer;

In early 2017 the State of Arkansas decided it had no further use for the AHCD property and offered it to the City of Alexander. Nothing moves slower than government and eventually the State ran out of steps for Alexander officials to complete. During its February 2018 meeting the council approved an ordinance accepting the State’s offer to take ownership of the 65.69-acre property at a cost of $10 paid to the State.

As part of the agreement the city must “honor” an existing lease with Pathfinder. While Pathfinder occupies approximately one acre of the property and five housing units, according to the lease Pathfinder pays one dollar ($1.00) per year and must maintain the grounds of the entire property. The lease expires in 2022.

While everyone thought the State couldn’t find a developer willing to pay the price Arkansas wanted for the property, it turns out by law the State isn’t allowed to sell real estate to individuals or businesses. Properties like AHDC can be transferred from one department to another but not sold.

“That restriction doesn’t apply to us,” Mayor Paul Mitchell said after the March, 2019 council meeting.

Finding a developer;

Since the beginning it has always been Mitchell’s plan to use the property as a lure to attract developers. The plan was never to sell it but to deed it to any developer willing to use it for commercial purposes that will generate sales tax revenue for the city.

He also had in mind extending Brookwood Road from where it turns towards West Azalea to Highway 111. That would not only create a short-cut to and from Highway 111 for that part of Alexander, but carry traffic through the new commercial area. Mitchell had already received approval from the owner of the Meadow’s Edge subdivision to provide access from the AHDC property to Brookwood Road. How to get it built was the question.

Originally, Mitchell thought he would have to find someone who wanted to develop the old hospital building and then parse out the rest of the property to one or more developers. With the help of Hope Consulting in Benton they were able to find one developer to take on the entire project, including extending Brookwood Road.

At this year’s March council meeting Mitchell announced a developer was found who was willing to convert the AHCD property into both a commercial and residential complex. The estimated 40 million dollar project will include renovating the property’s iconic former tuberculosis hospital into medium to high-end apartments and extending Brookwood Road through the property to Highway 111.

According to a drawing, provided by Hope consulting, all of the small buildings will be removed to provide a large commercial area. Mitchell noted the developers have contacts that could provide businesses such as McDonald’s, Big Red and possibly a Harps.

Strip malls will also be part of the mix. Mitchell says strip malls allow small businesses to set up without the hassle and cost of buying property and constructing a building.

The developer is Ben Hanford (DBA 14701 Alexander Road, LLC.), a client of the civil engineering firm of Hope Consulting in Benton. According to Mitchell Hanford will put $500,000.00 “in escrow” to guarantee completion of the Brookwood Road extension.

The property will be divided into 13 lots (See graphic above). Lot-1 (green) has the hospital building, which will be renovated into apartments. Next to Lot-1 is Lot-10 (tan), which will be developed into multi-family housing (apartments). The remainder of the property will be commercial.

Mitchell has revealed the name of the shopping center, Alexander Cross Roads. Besides the shopping center being accessible by area residents from all four points on the compass, from both inside and outside Alexander, Mitchell sees the name as a metaphor for Alexander’s future.

“We are at a cross roads,” he said. “Do we stay where we are or move ahead.”

What’s the hold-up?

The last thing Mitchell and the council members want is to deed the property over to someone who either fails to complete the development, or it ends up being sold to someone else. They want an agreement that returns ownership of the property to the city if something goes wrong.

Mitchell has found a real estate attorney to review the written proposal provided by the developer. The attorney is reviewing the proposed contract to ensure it will stand legal muster, allow the city to retrieve the property if certain criteria aren’t met and there are no legal pitfalls that will come back later to bite the city. Of course both sides must agree to the terms and ultimately it will be up to council members to give final approval on the transaction.

As of the June council meeting the attorney is still working on the contract review. As is usually the case, the City of Alexander is not his only client so officials must wait for this to be worked into his schedule.

There has been some behind-the-scenes grumbling that the mayor should find a different attorney who can move faster. Everyone will just have to wait and see.