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NLR School District, city file joint motion to dismiss TIF lawsuit

It was a campaign issue in last year’s mayoral race in the city of North Little Rock. It appears the issue is on the way to being resolved between the city and the North Little Rock School District.

In a motion filed on May 29, the city and school district filed a joint motion in the Pulaski County Circuit Court’s Second Division to dismiss a lawsuit that was filed on Jan. 30, 2009.

The lawsuit was the result of action taken by the city to make a tax increment financing district in the downtown region; however, the district never came to pass.

“The complaint in the above-captioned matter was filed … following the passage on Dec. 31, 2008 of certain ordinances related to tax increment financing districts (TIFs) in the city of North Little Rock,” states the motion.

On March 7, a counterclaim and declaratory judgment were filed on behalf of the city of North Little Rock relating to the effect of a millage increase on the total tax increase on the TIF districts.

Action taken by both the city and school district have eliminated the need for a lawsuit.

“In the ensuing year, circumstances have changed materially,” states the motion. “Most notably, on Jan. 14, 2013, the city of North Little Rock passed Ordinance 8495.”

The ending of the lawsuit had been in the works for several months.

On Jan. 17, during a meeting of the North Little Rock School District, School Board member Scott Miller moved to amend the agenda to add a motion concerning the settlement of the TIF lawsuit. Board member J.T. Zakrzewski seconded the motion. The motion passed unanimously.

Kenneth Kirspel, school district superintendent, explained that Mayor Joe Smith had stated that the City of North Little Rock wanted to and the North Little Rock City Council voted to drop the lawsuit.

Miller made a motion to instruct district attorneys to dismiss the case now pending in the Circuit Court. His motion passed.

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