City Strikes Deal with POA to Purchase Buildings
The City of Bella Vista strikes a deal with the Property Owners Association to purchase three buildings that house fire and police.
That offer is $1.8 million dollars.
“Certainly was much less expensive for them to purchase the buildings from us then build brand new buildings especially when they don’t even have land and there’s not a lot of land available in a planned community like Bella Vista,” said Tommy Bailey, Bella Vista POA General Manager.
The city leases the buildings from the association and decided to buy the property because rates were going way up.
The association wanted to raise rates from $6,000 a year to $14,000 a month.
Bailey says 6 years ago the city took over the police and fire departments from the association.
He said the city wasn’t financially stable so, the association helped by giving the city a low lease on those buildings.
“It is now very much to stand on its own and it now has millions of dollars in reserves and so now we felt that it was financially viable that it can stand on its own and it does not need further subsidiary by the property owners association,” said Bailey.
Members of the Bella Vista Village own the properties where police and fire buildings are.
“At this point in time they as the membership are not getting any real benefit or return at that investment that they have. That investment is that they over $3.3 million dollars in value,” said
But before it’s all said and done the sale will require a vote of 39 thousand property association members.
“It’s just going to require a vote of members of about 51% of those returning will have to approve it,” said Bailey.
The association says it could be a few months before members vote on the deal.