The new owner of the Arlington Resort Hotel & Spa took the city to task Wednesday in his first public comments since acquiring the historic property last month.
After addressing Hot Springs National Park Rotary Club Wednesday at the hotel, a lengthy message attributed to Al Rajabi, the CEO of Sky Capital Group, was posted on the hotel's Facebook page claiming a lack of support or guidance from the city in his efforts to revitalize the hotel. The city informed Rajabi earlier this month it would close the hotel if safety concerns related to the building's exterior aren't corrected by Nov. 8.
The city has said water infiltration needs to be fixed before freezing temperatures increase the likelihood of brick or plaster coming loose and falling on the ground.
"These threats of shutting us down aren't hurting me," Rajabi said in the message. "They're affecting the hardworking employees and hurting a community that's excited to have its history preserved. By shutting this hotel down, you're bringing down a historic icon in the state of Arkansas."
Rajabi's post said city directors, fearing the "backlash they may get by talking to me," have refused to meet with him. District 1 Director Suzanne Davidson, whose downtown district includes the Arlington, said Thursday Rajabi had told city staff he wanted to meet with directors individually. Davidson said she would meet with him if a staff member accompanied her.
"I didn't think that was a good idea," Davidson said of the one-on-one meeting Rajabi requested. "I said I'd meet with him if senior staff goes along for technical support. They're the ones with all of the knowledge. (The directors) just know the impact the hotel has on the community and its history.
"He should've asked us to meet in front of the (Hot Springs Board of Directors) at a public meeting."
City Manager David Frasher said Thursday that none of the city's elected officials have met with Rajabi, but staff members have had discussions with him. Mayor Pat McCabe said his attempts to meet with hotel officials have been unsuccessful.
"We will never knowingly compromise public safety, and we are never going to allow the residents of and visitors to our great city to be in an unsafe environment," McCabe said in a statement released Thursday. "On two occasions, I have had scheduled meetings that were unilaterally canceled by the Arlington officials. Additionally, our city staff has met with the new Arlington Resort Hotel & Spa staff on multiple occasions discussing the same, serious concerns outlined in a letter sent to them by our code enforcement officials.
"These same safety issues have been ongoing and precede the current owner and do not go away with any transfer of ownership. While we hope that the new owner will ultimately restore the Arlington to its former glory, we will remain steadfast in our commitment to public safety."
An email Frasher sent city directors last month said Rajabi had inquired about tax abatements during a conversation with Frasher. Sky Capital Group LP, one of the San Antonio-based entities Rajabi incorporated in June to purchase the hotel and other associated properties, has scheduled a hearing with the Garland County Board of Equalization next month in hopes of lowering the hotel's property taxes.
The countywide mass reappraisal that will conclude this year raised the total appraised value of the seven parcels Rajabi's companies purchased last month to $9.3 million, a more than 30-percent increase over the previous value. Based on the adjusted taxable value of the properties, Rajabi owes $67,877 in property taxes for the 2017 tax year.
According to deeds filed last month, Rajabi paid $5.03 million for the hotel, adjacent Wade Building and parking lots on Fountain Street and Park Avenue. The Arlington Hotel Co. Inc. holds the mortgage on the hotel after financing the sale. The $5.6 million note is secured by the hotel properties and does not specify when the debt is due.
Windsor Capital LP, of which Rajabi is listed as a general partner, has received numerous bank loans to renovate the Four Points by Sheraton it owns in Little Rock. According to Pulaski County property records, the hotel property is securing more than $9 million in debt.
"In other towns where I've done projects, people have been delighted and provided all kinds of support and incentives to help me bring my projects to life," Rajabi said in his Facebook post. "I've yet to meet with a single city official in Hot Springs who has offered to provide any support or guidance for the Arlington Resort Hotel & Spa."
Rajabi's post said he sees potential in the hotel, but the risk he has assumed in trying to realize it has been met with hostility.
"I took a chance and saw the beauty in this amazing lady," he said. "Beneath her cracks and discoloration is a magnificent woman waiting to be adored again. I took the chance when no one else did by asking her to the prom to dance the night away.
"But when I showed up to pick her up, I had her father, brothers, cousins and the entire state there with shotguns. You never asked her to dance. But now I'm here, and I promise that I'll take care of her. So put away the shotguns and support me in making sure she dances for another 100 years."
Rajabi said he is close to awarding contracts for work that will address the water infiltration affecting the exterior's integrity. The city said earlier this week it is amenable to stopgap measures that will shore up the exterior ahead of next winter, giving Rajabi time to make plans and secure financing for more permanent repairs.
"This has been my goal from the beginning," Rajabi, referring to the exterior repairs, said. "My team and I have been working hard to determine which areas to get started on. You've had 93 years of her. I just got her six weeks ago."
Local on 08/25/2017