Nevada County Picayune and Gurdon Times Newspaper Archive

Choice Narrowed to Arkadelphia and Tennessee Locations

It's down to the wire for the Clark County Industrial Council as it vies for a California-based company.

According to CCIC President Percy Malone, Clark County is one of two areas the company is looking at to locate a new plant. Malone asked for and received the authority to negotiate with the company's leaders on the issue.

Malone informed the CCIC's board of directors the graphite company is asking Clark County to finish out the spec building and lease it to them. However, he said the council does not have a group it can go to to get something of this nature done. He said the CCIC could apply for funding from Act 660, which was passed by the Arkansas Legislature while Bill Clinton was governor. The act, Malone said, is based to aid for profit companies, and gets its monies from state income tax. Additionally, he said the CCIC could apply for a low interest loan from the Arkansas Department of Finance and Administration (ADFA).

One problem with the ADFA loan, Malone informed the panel, is it has a 15-year life, while the California company is talking about a 10 year lease up front.

"There'd be five years we'd be without a revenue stream," Malone said. But there are some banks in the area he said have all but guaranteed the CCIC the necessary funding should the company not renew or extend its lease after 10 years.

According to Malone, the company is the second largest graphite manufacturing company in the world, and would pay above average wages to the 50-plus employees it would immediately hire.

One problem, he told the board, is the other area the company is looking to locate in, in Tennessee, has a better offer on the table at this time. In fact, he said the Tennessee region has funding in place to subsidize a building for the company at a lower cost than the CCIC can provide -- even if it gives the company the land and building.

"We could get a grant from the Arkansas Industrial Development Council (AIDC) to finish the building and lower the costs," Malone said, "and we'll have to use our reuse funds (provided by the city of Arkadelphia and Clark County) before the state would kick in. It's nothing new. This would help us get grant money."

The company, Malone said, is looking to pay about $4,000 per month for the building. The best the CCIC can do at this time is $8,000 a month without a grant. With a grant, he said, they could drop the price to about $6,000 per month. "Then we'd be in the ballpark," he said.

The panel was informed there are some other incentives on the table for the company which could put Arkadelphia over the top and bring it to Clark County. "We don't want to lose momentum," he said, "of having industry come in. These are good paying jobs. We could donate the land as part of the package to lower the price, and we have equity built up in the building."

Malone said he would be aggressive in his negotiations with the company because it is on a "short string" and is expected to make a decision within the next 30 days. "I'm willing to gamble for these jobs," he said.

Changing topics, Malone said he still expects something to happen with Roher in the next 12 to 18 months, and the CCIC may have to build a second spec building for this company along with the Califorinia company should it locate in the county.

He said Roher has been in contact with him, and the area is still under consideration at this time. However, Malone said a great deal with Roher depends on when they close out their California operation -- which could be as soon as February.

In addition, Malone said a boat manufacturing company in the county has shown interest in expanding. This is something he will check on and report to the council about at a later meeting.

The CCIC, though, is still faced with the problem of replacing Flave Carpenter, the current executive director. Brown Hardman, who heads up the search committee, said the committee has been interviewing applicants and will be working to narrow the field down.

Hardman said some 20 applications were received, and those candidates interviewed so far have been impressive.

Malone said Carpenter will stay on for a while as a volunteer and will help train his replacement. He praised Carpenter for his "working long, hard hours tirelessly."

"We need someone who will be committed and enjoy the work," Malone said. "This is not an 8-5, Monday through Friday job. It's a lot of work."

Malone began to talk about the fiber optic park locating in the Industrial Park but was interrupted by Arkadelphia Mayor Kitty Holland.

Holland said the CCIC needs to look at different ways to get its funding, and suggested it consider a restaurant-hotel tax, the so-called "hamburger tax."

Malone said he is unwilling to ask for a tax at this time. He said the county does more than it agreed to do and the Ross Foundation has also helped out, but the city needs to decide whether or not it will support the CCIC.]

Holland said the city does support the council, but the available funds are getting shorter. "We're only asking you to look at it," she said, "and try to find where you fit in. We support you."

She was reminded by Malone the CCIC supported the city when it was asking for two cents in taxes, which included getting a sewer project out to the Clark County Industrial Park. He said the CCIC board knows the city is in a bind, but said it's not a bad bind because the tax base is growing and more money is coming in.

Hardman said the CCIC does not want to be an adversary of the city's, but wants to work together.