Jonesboro Sales Tax Debate Continues

There are 585 miles of paved streets in Jonesboro, Mayor Harold Perrin said Monday as he discussed the need for constant road repairs in Jonesboro.

In about a month, Jonesboro voters will decide what to do with those roads as they head to the polls Nov. 10 to decide the fate of a proposed one-cent sales tax.

Perrin gave a presentation Monday night to about 40 people at the Jonesboro Municipal Center. The meeting Monday was the second in a series of meetings about the proposal.

Under the proposal, seven-eighths of one cent will go to existing streets, roads and bridges while the remaining one-eighth will go toward economic development. The tax, which will sunset in 2026, will seek to fix at least 20 projects in and around Jonesboro.

Perrin gave an overview of the projects, which can also be found at the city’s website.

He said he believes it is essential for cities to put funding into projects, especially in a difficult federal and state budget climate. Perrin said Congress has “kicked the can at least 30 times” in recent years. He also noted it would take 15 to 17 years to complete many of the projects and that a delay in the election date alone would ramp up the costs of specific projects including asphalt and construction.

ECONOMIC DEVELOPMENT
Attorney Robert Jones also spoke on the economic development component of the issue. Under the proposal, an economic development corporation will be created with a seven-member board, with members being appointed by the mayor and approved by the Jonesboro City Council for staggered five-year terms.

The corporation would be public in scope, with meetings and records subject to the Arkansas Freedom of Information Act, Jones said. It would buy land for economic projects as well as help with infrastructure.

Jones said the corporation would help Jonesboro compete with the region and nation, with Jackson and Mississippi counties using similar concepts. He said a study done earlier this year by Avalanche Consulting showed the need for key infrastructure.

“It is about the keeping, hiring and retention of jobs in Jonesboro, Arkansas,” Jones said.

Jones said the work to be done on Commerce Drive will not only help with traffic, but also trucks moving through Jonesboro’s Economic Development Park.

QUESTIONS AND ANSWERS
There were plenty of questions during the meeting.

Jones was asked about the kinds of jobs that would be sought under the proposal, other than factories. While not discussing specifics, Jones said that telecommunications and medical companies would be the kinds of jobs that would be sought. The primary focus would be industrial, Jones said.

But land is the biggest problem. There are 750 acres of land available for economic development, but only one with more than 200 acres, Jones said.

When asked about the use of imminent domain to seek land for projects, Jones said he would seek an answer to the question, but would not support the concept if he served on the commission.

Keith Watkins of Paragould asked about the current economic development setup in Jonesboro. Jones said the Jonesboro Economic Development Commission is a private, non-profit group.

Watkins asked about current funding being used to pay for projects. Ben Barylske, who is working with the sales tax group, said 40% of a current half cent tax goes to general expenses including parks and street overlays.

Watkins also asked about problems with economic development taxes in other towns.
Jones countered that most, if not all, projects have clawback provisions in agreements, allowing officials to recoup money. Jones said Trinity Rail moved into the former Nordex plant after Nordex decided the American market was “not for them.” Trinity Rail has since added about 400 jobs with high paying jobs, Jones said.

Phillip Cook asked about getting the “biggest bang for our buck.” Jones responded, “You are, Mr. Cook,” Jones said, noting citizen pressure from the public can make a difference in setting policy.

Council member Rennell Woods asked Jones about working to develop youth in Jonesboro, specifically workforce development readiness. Jones said companies in Jonesboro are begging for employees that have training skills like welding and engineering. Also, Gov. Asa Hutchinson and state economic development officials are working on a statewide approach, Jones said.

“It is a mandate. We have to do this due to our growth,” Woods told Jones.

Jones agreed, saying it will provide a key role.

Perrin, who was appointed to a statewide workforce board earlier this year, said there has been an increase in two-year colleges in the state dealing with workforce training. However, a major part of the need involves educating people of the opportunity in front of them, Perrin said.

The next meeting will be Oct. 12 at the Nettleton Performing Arts Center at 6:30 pm.