Can the City of Texarkana, Miller County, and the Texarkana Public Facilities Board jointly acquire an industrial site through an interlocal agreement?

Plain-English summary

James M. Fowler, Jr. of the Rose Law Firm submitted an interlocal agreement to the AG for the statutory pre-clearance required by the Interlocal Cooperation Act, Ark. Code Ann. § 25-20-101 et seq. The agreement was an "Interlocal Economic Development Cooperation Agreement" among the City of Texarkana, Arkansas; Miller County, Arkansas; and the City of Texarkana, Arkansas Public Facilities Board. Its purpose was joint acquisition of an industrial site for regional economic development.

AG Leslie Rutledge reviewed the agreement against the statutory checklist:

• Duration of the agreement. Required by § 25-20-104(c)(1).
• Purposes of the agreement. Required by (c)(2).
• Financing and budget arrangements. Required by (c)(3).
• Termination methods and disposition of property at termination. Required by (c)(4).
• Any other necessary and proper matters. Required by (c)(5).

And, because the agreement did not establish a separate legal entity to conduct the joint undertaking, the AG also checked the additional items required by § 25-20-104(d):

• Administrator or joint board to administer the joint undertaking. Required by (d)(1).
• Manner of acquiring, holding, and disposing of property used in the joint undertaking. Required by (d)(2).

Having found the agreement met all of these requirements, the AG approved it as proper in form and consistent with state law, satisfying the AG-approval condition in § 25-20-104(f). This is a pro forma compliance review, not a substantive evaluation of the underlying economic-development decision.

Currency note

This opinion was issued in 2020. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

What is AG approval under § 25-20-104(f) actually checking?
The form of the agreement and its consistency with state law. The AG verifies that the document includes the items the Interlocal Cooperation Act requires (duration, purposes, financing, termination, etc.) and that nothing in it is plainly inconsistent with Arkansas law. The AG does not pass on the wisdom of the underlying transaction.

Can the participating jurisdictions add more parties later?
The Interlocal Cooperation Act allows amendments. Any amendment that materially changes the agreement should go back through AG review. The original approval covers only the document as submitted.

Why was a Public Facilities Board involved?
Public Facilities Boards in Arkansas are quasi-public bond-issuing entities that municipalities create to finance public projects. Including the Texarkana Public Facilities Board in the interlocal agreement positioned the parties to use the Board's bond-issuing capacity if economic-development financing was needed downstream.

Is the agreement publicly available?
The agreement is a public record under the Arkansas FOIA. A copy can be requested from the City of Texarkana, Miller County, or the Texarkana Public Facilities Board directly.

Background and statutory framework

The Interlocal Cooperation Act, codified at Ark. Code Ann. § 25-20-101 et seq., enables Arkansas governmental units to combine their authorities to undertake joint projects "on a basis of mutual advantage" (§ 25-20-102). The Act conditions joint undertakings on a written agreement that meets a checklist of items (§ 25-20-104(c) for all interlocal agreements; § 25-20-104(d) for those that do not establish a separate legal entity), and on AG approval as to form and consistency with state law (§ 25-20-104(f)).

The AG's role is gatekeeper, not decision-maker. Once the agreement clears, the political subdivisions involved act under their own authorities subject to their own oversight (city council, quorum court, etc.).

Citations

Statutes:

• Ark. Code Ann. § 25-20-101 et seq. (Repl. 2014 and Supp. 2019) (Interlocal Cooperation Act)
• Ark. Code Ann. § 25-20-102 (Repl. 2014) (purpose: cooperation on a basis of mutual advantage)
• Ark. Code Ann. § 25-20-104(c) (required items)
• Ark. Code Ann. § 25-20-104(d) (additional items if no separate legal entity)
• Ark. Code Ann. § 25-20-104(f) (Repl. 2014) (AG-approval requirement)

Source

• Landing page: https://arkansasag.gov/divisions/opinions-foia/attorney-general-opinions-search/

Original opinion text

Opinion No. 2020-053
November 2, 2020
James M. Fowler, Jr.
Attorney at Law
Rose Law Firm
120 East Fourth Street
Little Rock, AR 72201-2893
Dear Mr. Fowler:
STATE OF ARKANSAS
THE ATTORNEY GENERAL
LESLIE RUTLEDGE
You have requested approval, pursuant to the Inter local Cooperation Act, 1 of a
proposed interlocal agreement between the City of Texarkana, Arkansas, Miller
County, Arkansas, and the City of Texarkana, Arkansas Public Facilities Board.
You have submitted a copy of the agreement, entitled "Interlocal Economic
Development Cooperation Agreement," the terms of which provide for the parties'
cooperation in the acquisition of an industrial site for the purpose of securing and
developing industry in the region and promoting economic development generally.
You seek my approval of the agreement, pursuant to the statutory requirement that
I approve as proper in form and consistent with state law any interlocal agreement
to undertake a joint enterprise between or among public agencies.2
The Interlocal Cooperation Act requires that interlocal agreements for joint or
cooperative action specify the following items:
( 1) The duration of the agreement;
(2) The purposes of the agreement;
1 Ark. Code Ann. § 25-20-101, et seq. (Rep I. 2014 and Supp. 2019).
2 Ark. Code Ann. § 25-20-104(t) (Rep I. 2014). The purpose of the lnterlocal Cooperation Act is
"to permit local governmental units to make the most efficient use of their powers by enabling them
to cooperate with other localities on a basis of mutual advantage." Id. at § 25-20-102 (Rep I. 2014 ).
323 CENTl' R STREET SUITE 200 •LITTLE ROCK, ARKANSAS 72201
T ELEPHONE (50 I) 682-2007 • FAX (50 I) 682-8084
INTERNET W EBSITE . http://www.ag.state.ar.us/ James M. Fowler, Jr.
Opinion No. 2020-053
Page 2
(3) The manner of financing the joint or cooperative undertaking and
of establishing and maintaining a budget for it;
( 4) The methods of accomplishing termination of the agreement and
for the disposal of property, if any, upon termination;
(5) Any other necessary and proper matters.3
In addition, if the inter local agreement does not establish a separate legal entity to
conduct the joint or cooperative undertaking, it must specify the following items:
(1) The provision for an administrator or a joint board that will be
responsible for administering the joint or cooperative undertaking;
(2) The manner of acquiring, holding, and disposing of real and
personal property, if any, used in the joint or cooperative
undertaking. 4
Having reviewed the Interlocal Economic Development Cooperation Agreement
that you submitted to this office, I find that it meets all of the requirements set forth
above. That agreement is therefore approved.
Sincerely,
~:::-;:), L. //'?>17
LESLIE RUTLEDGE
Attorney General
3 Id. at § 25-20-104( c ).
4 Id. at § 25-20-104( d).