The water slides planned for Parrot Island Waterpark[1] in Fort Smith that initially were to cost the city $2.1 million for acquisition and installation could now cost more than $6.3 million. The budget-busting news is an I-told-you-so moment for at least two city directors.
Acting Fort Smith City Administrator Jeff Dingman revealed during Tuesday’s (Oct. 21) Fort Smith Board of Directors meeting that the low bid – received Oct. 17 – to install the slides was $2.8 million. The problem is, the city only has $650,000 remaining from the initial $4.2 million approved by the board to buy and install the slides. The city, according to Dingman’s outline of expenses, has spent $3.55 million to acquire the slides and to prep them for installation.
“That is our current problem,” Dingman told the board. “We have $650,000 and we have two bids … and we have a big difference in the amount of money we have and the amount of money that it’s going to take to erect the slides.”
The path to Tuesday’s “whoops” moment began in June 2024 when city officials learned that the slides, destined for a Florida park, were available at an “aggressive discount,” according to then City Administrator Carl Geffken. Rick Coleman, CEO and founder of American Resort Management (ARM), the company that manages Parrot Island for the city and Sebastian County, informed city and county officials about the deal.
In July 2024, the Fort Smith board approved spending $2.1 million[2] to buy the slides, with Sebastian County to pay $2.1 million. At the time, the total of $4.2 million was estimated to cover the cost of buying and installing the slides. The waterpark is a joint project between the city and the county, and resides on county land at Ben Geren Regional Park. However, the Sebastian County Quorum Court voted twice[3] to oppose paying for half of the cost.
Not deterred by the county’s rejection, the Fort Smith board in September voted to approve[4] the full $4.2 million to acquire and install the slides. Directors André Good, Lavon Morton, Jared Rego and Kevin Settle voted for the deal. Morton is no longer a board member. Directors Christina Catsavis, George Catsavis and Neal Martin voted against the slide purchase and have been the three directors to consistently oppose using any city funds for the slides.
“That’s crazy,” Director George Catsavis said Tuesday when Dingman revealed the installation bids for the slides.
“That’s unacceptable,” Catsavis continued. “You know what I may do Jeff, and I’m going to go on record and say it, I’m ready to sell those slides. There’s no way we can afford that.”
Later in the discussion, Catasavis said that “from a business standpoint, all of these costs should have been brought up front before we bought the slides.”
Director Christina Catsavis quizzed Dingman about how the $4.2 million estimate “could be so far off.”
“I can’t answer that. I did not originate the estimate,” Dingman responded, adding that the “previous (city) administrator (Geffken) consulted with the management company on costs that they’ve seen in the industry on the other projects that they had, and I believe the dollar amount came from that discussion.”
Geffken was fired[5] by the Fort Smith board Dec. 10.
Director Settle was the leading board proponent of the waterpark expansion saying the new slides would mean Parrot Island would have the tallest slide in Arkansas, the most slides in Arkansas and the largest waterpark in the state. Settle was not at the Tuesday board meeting, and attempts by Talk Business & Politics to contact him for comment were unsuccessful.
Director Christina Catsavis said after the board meeting that she plans to ask Dingman to present the board with options on how to sell the slides and recover as much money as possible.
“My hope is that my colleagues on the board won’t throw out the sunk-cost fallacy to support that (paying the full cost to install the slides),” Catsavis said.
It is unclear how or if the board will proceed with installation of the slides. The slides were not on Tuesday’s voting agenda.
Opened in 2015, Parrot Island Waterpark features the area’s only two-lane FlowRider and wave pool. It also has four twisting and turning water slides, a relaxing lazy river, activity pool and themed children’s aquatic play area, the park’s website states.
Related
References
- ^ Parrot Island Waterpark (www.parrotislandwaterpark.com)
- ^ spending $2.1 million (talkbusiness.net)
- ^ voted twice (talkbusiness.net)
- ^ voted to approve (talkbusiness.net)
- ^ was fired (talkbusiness.net)