Fort Smith Chamber drive pushes past $2 million goal

The economic development fund drive of the Fort Smith Regional Chamber of Commerce has pushed past its goal of $2 million, with chamber officials now pushing for $2.5 million.

Paul Harvel, president and CEO of the Fort Smith Regional Chamber of Commerce, said the chamber is one of the few in the state and country that relies solely on private dollars to fund incentive and economic development recruitment efforts.

Speaking Tuesday (Oct. 11) during a study session of the Fort Smith Board of Directors, Harvel said the chamber has been able to rely on private dollars because the city of Fort Smith and the Fort Chaffee Redevelopment Authority have been good partners in the overall job recruitment and retention effort.

The chamber’s “Invest in the Best” economic development fund drive is up to $2.1 million. And while that is a lot of money, Harvel told the Board of Directors it will take all that and more in the coming years. The chamber, using funds from a previous fund drive, has spent about $1.98 million in the past five years. Companies recruited or retained with the money include Mitsubishi, Golden Living and Sykes.

“That’s not big dinners or airline tickets. That’s pure cash to support those (incentive, recruitment) efforts. … Economic development, folks, is expensive. Very expensive,” Harvel said.

He noted it can cost up to $25,000 just to prepare a packet that merely allows a community to get on the list of sites to be considered for a particular project.

Harvel also said having local money to support job recruitment and retention helps leverage funds from Arkansas’ Quick Action Closing Fund. The fund, established in 2007 and administered by the Governor’s office, helps sweeten incentive deals beyond the incentive packages offered by the Arkansas Economic Development Commission. Gov. Mike Beebe, the only governor so far to have had the QACF tool, has spent about $10 million in the Fort Smith region from the fund, according to Harvel.

The AEDC and site location consultants are the primary sources from which the chamber learns about economic development possibilities. He said one of the top goals of the chamber is to develop solid relationships with AEDC personnel and with site location companies and consultants of which the majority are based in Atlanta, Chicago, Dallas-Fort Worth and New York City. Harvel quoted the late and former Baldor Chairman, President and CEO Rollie Boreham in explaining the approach he takes.

“Rollie would say, ‘Relationships first, success follows.’ … That’s what we have to do is to establish relationships with those consultants,” Harvel said.

Harvel said the chamber will attend a series of meetings with consultants, with some meetings jointly sponsored by the AEDC.

He also said the addition of Tim Allen to the chamber staff beginning Nov. 1 will help with economic development efforts and chamber operations.

Allen, a project manager with the Arkansas Economic Development Commission for more than 11 years, will join the chamber as chief operating officer. Allen’s job will include supporting the chamber’s new business and retention program, working with expansion of existing business and industry and representing the chamber on regional transportation issues.

Part of Allen’s work at the AEDC has included helping with projects in the Fort Smith area, to include the location of Experian in Van Buren, and expansion of the Gerber and Hiram Walker plants in Fort Smith.

As to the economic development fund drive, Harvel said he is confident in obtaining $2.3 million before the Thanksgiving break, and securing $2.5 million by the end of the year.