Manufacturing, medicine boost construction activity

Manufacturing and medicine are playing a key role in what may prove to be a huge increase in the 2011 value of construction permitted in Fort Smith.

For the first five months of 2011, the city issued permits with a total value of $80.202 million, up an impressive 76.57% compared to the 2010 period.

A $28.5 million permit issued in January for construction of Mitsubishi’s wind-turbine assembly plant at Chaffee Crossing certainly accounts for the majority of the increase. Mitsubishi officials announced in October 2009 plans to build a $100 million wind turbine  manufacturing plant on 90 acres at Fort Chaffee that will employ up to 400 once fully operational.

However, without the Mitsubishi permit, values for the first five months would be up 13.8%. The increase, if it holds through the year, would be a welcome change. Fort Smith officials issued permits valued at $114.77 million, down more than $25 million compared to $138.946 million in 2009.

Several large big-ticket projects — other than the Mitsubishi plant — have been permitted so far in 2011 that should not only help keep permit values ahead of 2010 and 2009, but may also help boost employment in the lagging Mining, Logging and Construction sector. The sector employed a monthly average of 7,300 in 2010, down from 7,800 in 2009 and 8,900 in 2008. In April, estimated employment in the sector was 7,400.

Those big-ticket projects include:
• January permits of $700,000 for work at Sparks Regional Hospital and $500,000 to build space for a Sykes call center at the former Phoenix Village Mall;

• February permit of $700,000 for work value equally split among the Braum’s stores at 7701 Rogers Ave. and 1500 S. Zero St.;

• March permit of $4.2 million for work on Dick’s Sporting Goods store in the Fort Smith Pavilion mall at Phoenix Avenue and Old Greenwood Road, and $1.4 million for 6 permits for duplex construction;

• May permits of $1 million for repair work at Kohl’s Department Store in Fort Smith, a $937,000 commercial project under construction near the Wal-Mart Distribution Center on Zero Street in Fort Smith and a $500,000 addition to Gerber’s Fort Smith plant.

For June to build on the five-month gain, the pace and size of construction projects permitted must be enough to overcome June 2010 combined permit value of $17.364 million. June 2010 benefitted from a $3.822 million permit for work at Carnall Elementary School and a $3.4 million permit for construction of Floyd Traylor Honda at 3200 South Zero.

So far, the pace is swift, with about $10.4 million in permitted projects during the first 10 days of June. Two permits for medical related work comprise the bulk of the early June permit value.

A $1.5 million permit was issued June 7 for construction of new x-ray rooms at the 8500 S. 36th Terrace location (off U.S. 71 S.) of Fort Smith Radiation Oncology. The operation is owned by Dr. Kris Gast, the only female radiation oncologist in a 17-county western Arkansas area.

Construction of 10 “smart” operating rooms in the second floor of the R.S. Boreham section of Sparks Health System received on June 7 a permit valued at $6.934 million. The new surgery center also will include new patient waiting areas and “modern facilities” for pre- and post-op surgery, according to Sparks Marketing & Communication Director Donna Bragg.

The overall cost of the project, which includes a covered walking bridge between buildings, is around $17 million.

“It will be unlike anything in this region,” Bragg said of the new surgery suite. “This has great benefit, not just for patients, but for our system, the physicians and everybody who works in surgery. Everything will be more streamlined and efficient for all involved.”

Construction is expected to begin soon with hospital officials pushing for completion before Christmas, Bragg said.