Court Decisions

 Arkansas Court of Appeal

Court Decisions

CITY OF TONTITOWN, ARKANSAS (APPELLANT)
V.
CITY OF SPRINGDALE, ARKANSAS;
FIRST SECURITY BANK; AND
HILLCREST HOLDINGS, LLC (APPELLEES)

Opinion Delivered: November 18, 2020

The Arkansas Court of Appeal on November 18, 2020, held that real property which was located in the City of Tontitown, Arkansas, was legally annexed into the City of Springdale, Arkansas. 

Under Arkansas law, a landowner can seek to have their land detached from one municipality into another municipality that borders the land provided the procedures set forth in Arkansas Code Annotated Section 14-40-2002 are followed. 

Among other things, a landowner must file a statement with the municipality in which the land is located listing the municipal services which are being sought stating that the municipality is not providing the services necessary to create improvements, provide employment or additional employment, subdivide, or otherwise maximize the use and value of the property. 

The municipality in which the land is located has one hundred eighty (180) days after the statement is filed to take substantial steps toward making the services available. 

The Circuit Court of Washington County, Arkansas, in an earlier lawsuit previously found that the City of Tontitown, Arkansas, Court of Appeals, had failed to take substantial steps to provide the services requested by the landowner, and upheld the detachment and annexation of the land into the City of Springdale, Arkansas. 

The City of Tontitown, Arkansas, then filed a lawsuit contending that the annexation was void because the City of Springdale, Arkansas, had not taken substantial steps within one hundred eighty (180) days after the City of Springdale, Arkansas, Ordinance annexing the land into the City to provide the services requested by the landowner as required by statute. 

The City of Tontitown, Arkansas, alleged that the City of Springdale, Arkansas, failed to construct a public road on the land within one hundred eighty (180) days. 

The City accepted an existing private road as constructed on the land thereby making it a public road but did not construct a new road. 

At issue was what was meant by construction for purposes of the statute. Through statutory construction, the Arkansas Court of Appeals found that the City of Springdale, Arkansas, was not required to construct a road and had taken substantial steps to provide a road by accepting the private road as constructed. The case is a landmark case in annexation and statutory construction.

The Jiles Firm, P.A., represented First Security Bank and Hillcrest Holdings, LLC.

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