It's not possible to answer this question with the information you've given. Ideally you'd reproduce the problem in https://play.rust-lang.org/ and link it here, or link to a repository where you hit the problem if it's too hard to minimise. You should also include the full error message.
Anyway, Arc<&'a Item> is suspicious. The point of Arc (and Rc) is to provide shared ownership. They do this via reference counting, and indirection (i.e. they heap allocate the inner value and only pass around a pointer to it). Combined with the fact that one uses Arc (and Rc) when the code and data is not structured in a clean, tree-like fashion, it's almost always the case that Arc (and Rc) are a workaround for avoiding lifetimes.
Thus, in real code, you almost never see an explicit Arc<&_> type. It is likely that you misunderstand what references are for – maybe you are thinking that they are for storing data "by reference", but that's not what they do. What do you think you can achieve with Arc<&Item>? There is likely a better/correct way of doing what you are trying to do.