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City liability issues in owning the unimproved bridge

The City acquired the Bridge (along with the Junction Bridge and other real estate) in a Donative Bill of Sale dated December 27, 2001 (but paid $3,000,000) and in this document the City acknowledged that it will "...assume all liability, loss, damage, costs and expenses arising from or growing out of the existence, use or maintenance of the Bridges....". (link to Donative Bill of Sale) At the time, City Attorney Tom Carpenter expressed grave concern about acceptance of this liability. As the bridge has aged for the past six years with no preventative maintenance, this liability has only increased. What has the City done, in prudence, to minimize or mitigate this exposure?

The U.S Department of Transportation, U.S. Coast Guard Division wrote the City a letter on March 25, 2002 declaring the Bridge an "obstruction to navigation" and warning of the possibility that "...the City will be ordered to remove the bridges unless there is a plan which will reuse the bridges in a functional way..." and requiring ".a timeline". (Link to copy of letter) As long ago as 1996 the cost of such demolition was estimated at $2.5-$3million which would be the City's exposure under the Deed in the preceding paragraph. By not enforcing the Foundation's renovation of the bridge and not even obtaining a timeline for doing so, the City has continued this exposure.

The City paid the $3million in December 2001 for, among other things, the bridge and did so AFTER being assured in the August 2001 RESPONSE that the Foundation would renovate the bridge, but BEFORE entering into the March 2002 LEASE that the Foundation now claims let them off the hook for renovation. The dates of these events reveal a a disregard of the City's interests by the more powerful Foundation, able to invoke the influence of the former president.

These liability issues would be largely mitigated if the Foundation fulfilled its promise to "build our bridge". (Under the existing intrelocal agreement now covering the recently renovated Junction Bridge, the City of Little Rock now shares the liability exposure in equal thirds with North Little Rock and Pulaski County, the liability for possibly having to demolish the bridge goes away altogether.)