On Tuesday, Aug. 11, Springdale Mayor Stan Smith emailed a letter to the people of his town giving them the final explanation of the Izzy Poco lawsuit—the “formula restaurant” case—that he has promised for many months. Writing on behalf of the entire Springdale Town Council, Smith explained that the only realistic choice was to settle the five-year-old Izzy Poco lawsuit and change the town ordinance which previously banned formula restaurants. This letter was sent one day before the official Springdale Town Council meeting on Wednesday, Aug. 12, where the Council formally and unanimously voted to repeal the ordinance. The Izzy Poco corporation has been waiting to open a Subway sandwich shop in Springdale since 2010.
A little over a month ago on July 1, Smith released a letter to Springdale explaining that the Town of Springdale’s insurance would be cancelled on that very same day if they didn’t agree to change their ordinance to allow formula restaurants, in effect surrendering in the five-year struggle to keep what Springdale calls a “village atmosphere.” Up to this point, only restaurants that were unique could be opened in Springdale.
The July Springdale Town Council meeting—held just after the letter was sent out—was emotionally charged as Springdale residents had just learned that the Town Council intended to give up the fight. Louise Excell, a previous member of the Council, called on the entire administration to resign, something none of them were willing to do.
In the most recent letter sent to Springdale residents, Smith answered questions that he received after the emotionally charged July meeting. One question was a lack of transparency as the Izzy Poco lawsuit proceeded. Smith stated in the letter that more information could not be shared because legal restrictions made it impossible. Smith’s critics later published an open letter where they countered that while some information had to be kept confidential, other information should have been shared with a concerned community sooner.
Smith also wrote that the Izzy Poco lawsuit was settled because the risk of severe financial damage to Springdale was too great. Although no judgment was rendered against Springdale, the Town’s insurance company, United Local Governments Trust, will pay about $787,000 in damages to Izzy Poco. Smith noted that continuing the lawsuit would expose Springdale to uninsured risk for more damages.
The Aug. 12 Town Council meeting was much more subdued than the July meeting. Only one comment was made during the public hearing on the matter required in order to formally eliminate Springdale’s ordinance. At the end of the meeting, the Springdale Town Council did direct the Planning Commission to study other ways to mitigate the damage to Springdale’s “village atmosphere” but conceded that any new ordinance would not apply to Izzy Poco since their development was now legally approved.
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