Renewal of an agreement between the city of Fort Smith and Main Street Fort Smith is on pause, with the Fort Smith Board of Directors set to review a $150,000 annual outlay intended to support downtown improvement and business recruitment.

Fort Smith Director Neal Martin said during the board’s Tuesday (Jan. 20) meeting that he wants to learn more from Main Street Fort Smith Executive Director Amanda Hager and the Main Street board about what the city is getting from its relationship with the group.

“I would like to pull this out and not vote on it and have a study session related to it,” Martin said during the meeting. “This is about Main Street Fort Smith, our downtown. … I think it’s time to take a good assessment, another assessment of Main Street Fort Smith and how they are performing.”

The city first signed an agreement with Main Street for $150,000 a year – $12,500 a month – in 2023.

“Prior to the 2023 agreement, the city had no regular involvement in these activities since the elimination of the Downtown Coordinator position several years ago,” noted a memo from Acting City Administrator Jeff Dingman. “Secondly, the Arkansas Downtown Network and the Arkansas Main Street Program are active statewide functions that provide support and access to grant programs for the benefit of properties in Arkansas’ downtown districts.”

Dingman said collaboration with Main Street Fort Smith aligns with “Future Fort Smith Comprehensive Plan regarding revitalization of Downtown Fort Smith.”

Directors George Catsavis, André Good, Lee Kemp, Martin, and Kevin Settle voted to move the funding resolution to a future study session. Directors Christina Catsavis and Jared Rego voted against the move.

MAIN STREET BACKGROUND
According to its website, Main Street Fort Smith “is a nonprofit committed to creating vibrant spaces in downtown Fort Smith through business development, arts and culture, special events, and the promotion of attractive amenities to accelerate development of diverse commerce.”

Main Street Arkansas is a program within the Arkansas Historic Preservation Program. It was established in 1984 to support Arkansas’ traditionally commercial areas. At the state level, Main Street Arkansas offers consultation services including interior and exterior design help, small business advice and grant opportunities to its members.

Main Street has collaborated with the Central Business Improvement District (CBID) on efforts that align with their goals of boosting business activity in downtown Fort Smith. Specifically, Main Street and the CBID will share the costs of a downtown growth and grants specialist. Under the plan approved, the CBID will annually pay $26,328 and Main Street will pay $17,552 to support the employee

The CBID is a semiautonomous governing body involved in efforts to enhance downtown Fort Smith and work with groups engaged in promoting and developing the downtown area.

Efforts the shared employee will help support includes a small business incubator Main Street Fort Smith is working to launch, according to Hager. She said the incubator program “is not reinventing the wheel” because it has been tried, tested and adjusted by other Main Street programs nationwide.

Hagar said the employee also will help both organizations get detailed information about downtown property, businesses, business activity and other information “that can really be a resource to Realtors, to developers, and to property and business owners that may be coming in.”

‘IMPACTFUL’ RETURN
Hager told Talk Business & Politics that the board’s budget concerns are valid, and she welcomes a chance to share with the board during a study session what the organization has done and continues to do.

“I understand that the budget is being more scrutinized than it was last year, but I think the return on our investment to the city and the community is so impactful that the city will want to take part in a thriving economy downtown,” Hager said.

Hager said momentum continues to grow in the downtown area, with $15 million in private downtown investment in 2025 and 19 new businesses opened.

“I think that (investment and new businesses) shows the community that downtown is a vital piece of the city … and that downtown is a vital part of attracting investors and others that see the benefits,” she said.

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