Fort Smith Development News
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Board Discusses Proposed Legislation for Hospital Service Notification
The board discussed proposed legislation requiring hospitals to provide community notice before closing or significantly reducing care services, prompted by recent reductions at Baptist Health in Fort Smith. Representative Jay Richardson attended the study session to discuss the matter. Director Kassavis proposed an 180-day notification period, citing examples from California (120 days) and Maine (90 days), to allow patients and the community to prepare for service line closures, such as the cancer treatment center and labor and delivery. Concerns were raised about potential pushback, including situations where a single doctor staff an entire department, and potential conflicts with HIPAA laws. The discussion also touched upon the WARN Act, which requires 60 days' notice for layoffs of 50 or more employees, and noted that Baptist Health had not always adhered to this, sometimes avoiding the threshold. Representative Richardson expressed willingness to work on drafting legislation and gathering feedback. Director Kemp suggested considering legislation related to insurance payouts (reimbursement rates) to hospitals, noting Arkansas's low rates, which could impact hospital financial stability. The possibility of reintroducing House Bill 1930, concerning Medicaid/Medicare reimbursements, was mentioned. Director Good acknowledged that hospital service issues are a nationwide problem and that while private businesses shouldn't be dictated to, essential services require community consideration. Director Cassavis differentiated hospitals from typical private businesses due to their tax-exempt status, justifying public input on service changes. Representative Richardson committed to working on the issue.
City Reviews Draft Consolidated Plan for Federal Housing Grants
The Board of Directors reviewed the draft Community Development Block Grant (CDBG) and HOME Investment Partnership Fund five-year consolidated plan for 2026-2030, including the 2026 action plan and citizen participation plan, as required by HUD. The review period concluded on June 17th, and pending board approval, the plan will be submitted to HUD by July 10th. Director Kemp inquired about the waiting list for owner-occupied rehab assistance, and Ms. Gabuchi stated there is no long waiting list, typically only a two-month period for housing assistance board approval and bidding. Regarding nonprofit groups assisting with the process, Ms. Gabuchi noted that World Changers completed their work that week, and no other groups have expressed interest yet. The board will need two directors to make a motion to place this item on the July 7th meeting agenda. Directors Kemp and Good made the motion and seconded it, respectively.
City to Replace Dispatch System Following Vendor Security Breach
The board discussed a proposal to replace the ProPhoenix CAD RMS mobile system for emergency services dispatch with a solution from Central Square due to a security breach by ProPhoenix. In March 2023, the city contracted with ProPhoenix for CAD RMS mobile and jail software. In February 2024, ProPhoenix violated the city's agreement and the FBI's CJIS security policy, leading to the termination of the agreement and a request for a refund of approximately $1.2 million. This breach has left the city without vendor support and hinders expansion into a countywide system. Central Square was the other finalist vendor in the 2022 selection process, scoring identically to ProPhoenix, with ProPhoenix initially chosen for its incorporated fire agency record system, which the fire department later opted not to use. The city is now negotiating with ProPhoenix for a refund and is seeking to contract with Central Square, which can provide the same services and is already a city vendor. Central Square is also part of the Sourcewell Purchasing Consortium. Implementation is estimated to take 6-18 months, but the city hopes for a faster deployment due to recent experience. The proposed contract with Central Square is scheduled for the July 7th board meeting, with funding to be requested from the 911 reserve balance. Legal counsel confirmed ProPhoenix's breach of contract is clear, as they failed to comply with CJIS security protocols. The cost for Central Square is estimated at $380,000, which includes service and maintenance for four years and is less expensive than ProPhoenix over five years due to incentives and lower annual fee increases. The city is continuing to use ProPhoenix until the new system is fully implemented and tested, with controls in place to mitigate further security risks.
City to Fund Bailey Hill Redevelopment for Affordable Housing
The Board of Directors discussed an agreement with the Fort Smith Housing Authority for financial assistance for the Bailey Hill redevelopment project. The project aims to develop 34 homes for sale to low to moderate-income families. The city originally transferred the Bailey Hill Reservoir property to the Housing Authority in 2012 for redevelopment. The city has committed $1 million from its capital improvement plan for street and storm drainage infrastructure. The Housing Authority will use its own funds ($436,000) and federal CDBG funds ($343,000) for phase one demolition and site preparation. Phase two, involving streets and drainage, will utilize the city's $1 million commitment. Phase three will be the construction of 34 homes by the Housing Authority's nonprofit construction team. 24 homes will be sold to families at or below 80% of the Area Median Income (AMI), and 10 homes will be available to those between 80% and 120% AMI. The project is expected to generate significant property taxes and utility revenue for the city over 30 years. The board raised questions about the allocation of funds, the project's affordability criteria, the Housing Authority's construction process, and potential mechanisms for the city to recoup its investment. The board requested further information on cost breakdowns for street improvements and home sizes, and details on deed restrictions and potential clawback clauses for city funds. The Housing Authority agreed to provide regular updates and detailed information before the project is brought to a regular board meeting, likely in late August. The original property was a decommissioned water reservoir, off the tax rolls for decades.
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The Fort Smith News archive
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6/16/2026 - Board of Directors Regular Meeting
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