Nevada County Picayune and Gurdon Times Newspaper Archive

Economic Office Refuts Hale's Allegations Over Annexation

A recent article about the proposed annexation has drawn a response from the Nevada County Economic Development Office.

In a release by Gene Monk, executive director of the office, plans for the extension of utilities to the affected area were completed some time ago and are available for public viewing at the economic development office during normal business hours.

According to Monk, the plans were prepared months ago and have been examined by several citizens.

He said the article alluded to the fact the city has applied for a public works grant from the U.S. Department of Commerce, Economic Development Administration (EDA) for the expansion of its water and sewer system. When awarded, the grant will result in the provision of water service to the area north along Highway 19, southwest along Ron Harrod Drive and west of Interstate 30 at Exit 44.

Additionally, the grant will help provide sewer service in much of the same area, and will provide main trunk lines and lift stations needed to dispense service to the affected area.

The total cost of this phase of water and sewer development to this area is estimated, according to Monk, at $985,925. The EDA grant application is for 70 percent of the total cost of the project, or $690,148. The city's 30 percent match is equal to $295,777.

Monk said an important purpose for the extension of the city utilities to the area is to realize new commercial development oriented to I-30 traffic. In this regard, the installation of city utilities in this region will immediately result in an estimated 130-plus jobs to be created by newly locating commercial enterprises. In addition to these jobs, it is expected property in the area will develop rapidly, resulting in more business locations and further job creation. Without the provision of city utilities to the I-30 area, these new jobs will not locate in this region.

The new businesses locating in the annexed area will generate increased water, sewer and electricity sales by the city. Even more importantly, city and county sales tax receipts are expected to increase dramatically. It is estimated new revenues generated from the city's 2 percent sales tax alone will pay for Prescott's 30 percent share of the work in three or four years, Monk said. The payback, he continued, will be accelerated when property tax and utility sales are added.

Monk said the statement a portion of the property to be annexed is within the recently created Prairie DeAnn Battlefield National Historic Landmark is wrong. The landmark, he said, is bounded by Arkansas Highway 19 to the east, I-30 to the south and the Prescott and Northwestern Railroad to the west. Current annexation plans and utility development does not include any property within these boundaries. He said no plans have been advanced to develop this area commercially or industrially, because of its historic significance.

Monk continued, saying initial application for the EDA grant included a signed letter of clearance to proceed from the director of the Arkansas Historic Preservation Program, who reviewed the utility development plans as required by law.

The NCEDO, Monk said, is deeply concerned about the recent business closures mentioned in the article. He said the hospital closure was, of course, an additional terrible loss to the community. However, he said, the NCED is committed to looking beyond these losses and seeking a means to economic recovery. The office, Monk said, is convinced if the trend of business closures is to be reversed, aggressive, positive steps have to be taken.

One of these steps is the project to extend utilities and annex property to allow the local economy and the City of Prescott to realize additional benefit from the proximity of I-30. "As traffic patterns have shifted to the interstate system," Monk said, "over the last decades, it has become clear that for the area economy to survive and flourish we must tap more heavily into the constant flow of interstate traffic at our back door."

Monk, on behalf of the NCEDO, urges the citizens of the area to support these economic development efforts. He said new strategies and programs are vital if the local need for new jobs and commercial and industrial growth is to be met.