Chaffee trust committee recommends scaling back donation to Fort Smith chamber

The Fort Chaffee Redevelopment Authority (FCRA) is on board with supporting the Fort Smith Regional Chamber of Commerce’s $2 million 2017 economic development campaign, but not in the amount requested by the Chamber at the July FCRA Board meeting.

Chamber President and CEO Tim Allen had requested the trust double its 2010 commitment of $50,000 to $100,000, citing economic development efforts of the Chamber’s from which eastern Fort Smith’s Chaffee Crossing district has benefitted. The Board promised to discuss the request in a follow-up meeting that took place on Monday (Aug. 14).

At the meeting, the FCRA Budget Review Committee recommended a $10,000 one-year commitment to the Chamber’s economic development campaign, or one-tenth of the requested amount with the option to review commitments on an annual basis. The recommendation will go before the FCRA Board on Thursday (Aug. 17) for final approval.

The previous amount of $50,000 was donated over a four-year period at $12,500 annually, so assuming the Board does decide to commit to another four years, it would be an annual reduction of $2,500, or $10,000 from the previous amount.

One reason for the scaled-back recommendation was the trust’s outstanding commitments, which include $1.5 million for new trails and $2 million for the Highway 255 relocation project. As FCRA Board member Don Keesee noted, “Over time, our revenue will go down, but our overhead will go on.”

Another reason was dwindling inventory. Revenues are generated primarily through property sales, and FCRA shows 2,500 acres remaining on its books, “about 800 of which are not marketable,” according to FCRA Executive Director Ivy Owen. Furthermore, Owen said, land for major projects like Mars Petcare or the Arkansas Colleges of Health Education (ACHE) was donated.

A third factor discussed on Monday was the original purpose behind the Base Realignment and Closures (BRAC) program. When BRAC deeded to FCRA 7,000 acres for economic development 20 years ago, it did so with the directive revenues generated be placed back into the property. The previous $50,000 donation was booked as an advertising and marketing expense for such an effort.

FUNDRAISING CAMPAIGN HISTORY
The Fort Smith Regional Chamber of Commerce announced its $2 million fundraising goal in October 2016 to help fund job recruitment and retention efforts in the larger metro area.

Sam Sicard, president and CEO of First National Bank of Fort Smith and then-chairman of the Chamber’s Board of Directors, told Talk Business & Politics in a previous interview the fundraising goal was targeted for “the next few years,” but he hoped to get commitments pledged by the end of 2017.

In a statement announcing the campaign, the Chamber said previous capital campaigns have helped bring to the region “over 100 economic development projects resulting in 5,000 new jobs and $680 million in capital investments.” First National Bank and Oklahoma City-based OG&E were cited as early “pacesetter” companies in the campaign. As of the October announcement, approximately $400,000 had been pledged toward the goal.

Sicard cited momentum from jobs announcements including corporate expansion of ArcBest Corp.; Glatfelter’s move into the former Mitsubishi facility; and the ACHE’s Arkansas College of Osteopathic Medicine (ARCOM) as Chaffee-related factors that would help the campaign.