The recent developments regarding Parrot Island Waterpark highlight several issues, including theft allegations involving an employee and the end of the contract with American Resort Management (ARM) set for the end of 2026. Prosecuting Attorney Dan Shue has announced the need for a special prosecutor due to his office’s representation of Sebastian County, and an investigation by the Fort Smith Police Department is ongoing.
ARM, which has managed the water park since its inception in 2015, has officially notified the city and county of its intent to terminate the management agreement without cause. The termination will be effective on December 31, 2026, allowing time for a transition of management responsibilities.
The Fort Smith Audit Advisory Committee has also been reviewing ARM’s financial records due to rising repair costs, particularly for the lazy river. Additionally, there has been controversy regarding plans to expand the park, with significant budget overruns noted.
City and county officials are currently assessing management proposals to determine the facility’s future management.
