Nevada County Picayune and Gurdon Times Newspaper Archive

Court updated on sales tax issue

A proposed 1 3/8 cent sales tax actually translates into a tax increase of 3/8 of a cent, according to Jon Chadwell.

Chadwell, the executive director of the Prescott-Nevada County Economic Development Office, said, at the October 13, meeting of the Nevada County Quorum Court, when the one-cent sales tax went off in April it was something area residents were used to paying. So, should the proposed 1 3/8 cent tax be approved, the increase would actually be 3/8 of a cent.

If the tax is passed, the city's sales tax would be 8 = cents. Currently, Chadwell said, Prescott's sales tax is lower than that of surrounding communities. "Few people notice what they actually pay in sales tax."

The city is seeking this tax to be able to overlay all streets at the same time. According to projections, this project will cost approximately $3 million. This is because there are 30 miles of streets inside the city limits and it costs about $100,000 per mile to do a two-inch overlay.

Chadwell said the city could afford to pave half a mile of street each year with its current budget, but it would take 60 years to get all of the streets paved at this rate. He told the court about looking for grant and other money for street work, but was unable to find any.

"The only alternative was the tax," he said. "The streets are in bad shape and there is a safety issue involved."

If the tax is approved by voters on Nov. 18, it will take effect on Jan. 1, 2004. However, Chadwell said, the bond ordinance has been set up so when the bonds are paid off the tax goes off the books. This could be done in seven years, even though the ordinance has a 10-year total life.

He told the court the only road the city is responsible for near Interstate-30 is the one by Rip Griffin at Exit 44. At Exit 46, he said, the city limits ends at the interstate.

The reason Rip Griffin's is in the city limits is because the business had to have city sewer, and, by law, cities can't extend sewer services beyond the city limits. Under the law, he said, a city can extend its water lines beyond the limits, though.

Chadwell also updated the court on the progress of Prescott Rubber, Inc. The building is done, and a first walk-through has been made by the owners. The plant will open within the next two weeks and be up and running in December with 10-12 people hired.

The company has three years to reach full employment of about 30-40 people, Chadwell said, under its agreement with state economic department.

Prescott Rubber will take scrap rubber from Firestone, its primary source of material, and recycle it. The plant will manufacture pads for its customers, but will basically turn the recycled rubber into pellets and bag it for other clients.

Before the state agreed to help the company, officials had to sign an agreement on how many employees would be hired and what the pay rate would be. The agreement stipulated the maximum amount of people must be hired within three years, with the state monitoring the company's progress. The company has to submit quarterly reports to the state showing what's being done.

Chadwell said Prescott Rubber will have clients who use the recycled rubber to make mats for cars and floors. "Their customers like it because it's recycled material and cheaper than raw product."

The parent company for Prescott Rubber is based in Malaysia, where rubber is the country's No. 1 product.

According to Chadwell, the owner has two or three patents on the recycled rubber process, and other companies have attempted to buy it from him. However, in this instance, the decision was made to retain ownership of the process and use it to recycle rubber for sale.

Turning to the sidewalk project, Chadwell said the part around the Nevada County Courthouse is almost done. A wheelchair ramp will be added later. Additionally, the contractor will raise the area near the Post Office with asphalt to even it up with the sidewalk.

The crew is currently working on Elm Street by the Prescott Police Department.

Members of the court questioned Chadwell about an underpass in Prescott.

He said Mike Ross has worked with the Arkansas Highway Department on this issue, but there are two problems involved. The first is feasibility  or where to put it.

Railroads, Chadwell said, hate underpasses, while the AHD isn't fond of them either. Train traffic is rougher going over a road than under it. Both entities prefer overpasses.

But, in order to put in an overpass, the city would have to have 600 feet on both sides of the track to go over the train. "This would be equal to two city streets," he said. "We would have to build a new road and new crossing, then tie it into an existing street.

"We're looking at different scenarios and have found one or two that might work."

The other problem, he said, is money. In all likelihood, an overpass would have to be constructed over the railroad and Highway 67 and cost several million dollars.

"This isn't a cheap undertaking, and there are safety issues involved. I've impressed this on them and we may be able to get some help from the government, but we'll need to show where it's feasible and what it will cost."

At this time, plans are being drawn for an overpass to see how it could be done. An underpass, he said, was considered for the area of the old armory. It would have 16-foot clearance, but this wouldn't be enough for tractor-trailer rigs.

Chadwell was also questioned about the possibility of a second grocery store in Prescott. He said he's talked to four or five companies about this, but they want to rent a building initially to see what kind of profit they could make. The only building large enough (the old Taylor's Grocery) is already under lease to someone else and isn't available.

"They want to test the market before they consider building," he said. "Some have done market surveys and feel they can make money, but they don't know how much. If there was somewhere they could rent, one might be interested in coming in."