Mississippi County Battles Back

Clif Chitwood said Mississippi County was pushed to the brink many years ago, after seeing several thousand jobs leave the county.

The work under pressure appears to have provided some dividends, both literally and figuratively.

Chitwood – the county’s economic developer and an official with the Great River Economic Development group – said the loss of companies like Fruit of the Loom in Osceola in 2001 and other factories in Blytheville, Osceola and Wilson soon after began to change the county’s focus.

The loss of an industrial prospect that was considering locating in Blytheville at the same time car part maker DENSO was wanting to locate in Osceola then created an even clearer picture, Chitwood said.

“It was an eye-opening experience,” Chitwood said of the situation.

The company had looked at Blytheville, with the town being one of three finalists for the project. Blytheville officials were not in a position to offer incentives and the company instead chose a location in Bowling Green, Ky., Chitwood said.

Chitwood was quick to note that incentives alone do not always help to land a project. However, he said that a total team effort often helps to bring a project to fruition.

Soon after, the Great River Economic Development board came up with an idea – a half-cent sales tax to help with local incentives for economic development projects.

Mississippi County voters approved the sales tax in 2003 and again in 2013. Requests for the incentive money has to be approved by the Mississippi County Quorum Court before any money is appropriated.

Chitwood said nearly $35 million has been committed to various economic development projects since it began, with companies creating in return about $87 million in payroll each year, or $870 million over a ten-year period.

“That is a pretty good rate of return. If that was in the private sector, Warren Buffett would be calling you asking for advice,” Chitwood said.

GOALS
Unemployment in Mississippi County stood at 11.3% in June 2014, far above the state jobless rate of 6.2%. In June 2003, when county leaders were coalescing support for the half-cent sales tax for economic development, they were fighting an unemployment rate of 13.2%.

While the overall population of the county has shrunk by roughly 10% during the past decade, the labor force has actually improved. Today, there are 20,600 workers counted in the Mississippi County labor pool compared to 19,800 ten years ago.

Chitwood, a 1972 University of Arkansas graduate, said the creation of the Great River Economic Development group has helped to focus economic development in the county.

Traditionally, local chambers of commerce around the state have worked on the issue. Chitwood said the local chambers in Blytheville and Osceola have been great partners in helping with issues like quality of life and education.

Chitwood said the county’s political leaders have also provided support.

He credited former Mississippi County Judge Steve McGuire, Osceola Mayor Dickie Kennemore, former Blytheville Mayor Barrett Harrison, Blytheville Mayor James Sanders and Mississippi County Judge Randy Carney with helping to build a strong foundation.

“There are some who would attribute the success to one person. But it has been a complete community effort,” Chitwood said. “Before, when you thought of the Quorum Court, it was county roads, the jail and the landfill. But economic development has brought all of the groups together.”

Chitwood, who also serves on the Arkansas Northeastern College Board of Trustees, also said the county has benefitted from having the college and seven school districts.

FUTURE
Chitwood, who grew up in Osceola, said the loss of the companies several years ago not only depleted jobs but also depleted local civic clubs.

However, the county has seen the start of a possible renaissance with the announcement in early 2013 with Big River Steel announcing that a $1.3 billion steel mill would be built in Osceola.

That announcement was followed by Indigo, an oil transportation company, wanting to build a terminal on the Mississippi River and environmental recycling company Blue Oak Arkansas building a facility on Ohlendorf Road in Osceola.

The county has many things going for it, Chitwood said.

“It is inherent with the railroad, the interstate, the river and the electrical lines,” Chitwood said, noting that are many areas along the Mississippi River that can claim those things. “But the people, it is where most of the growth has happened. They are willing to sacrifice.”

On the Big River Steel project, Chitwood said he expects the 2,000 or so construction jobs to be filled in a wide variety of ways.

“Good jobs here is not a secret,” Chitwood said, noting the jobs could be filled by people from as far away as Ohio and throughout Arkansas.

Chitwood said ANC, Mississippi County and the Rockefeller Foundation are currently working on a program to study multi-generational poverty in the county.

“In Mississippi County, we do have multi-generational poverty. But we also have some of the highest paying jobs in the state of Arkansas,” Chitwood said.

He said companies like Nucor have helped to spur overall economic growth in the county, with the money made by people at the companies being spent on a number of things.

“The average industrial worker’s wages turn over seven times, while the average retail worker’s wages turn over three times,” Chitwood said.

There is also an opportunity to climb the proverbial ladder by getting training at colleges like ANC and building your way up, Chitwood said.

“At Nucor, one of the places they look for new employees if they have an opening is the pipe mills. From the pipe mills, there are the suppliers. From there, it is the other companies, all the way to McDonald’s,” Chitwood said.