Chaffee Authority approves Mitsubishi incentives, bow-hunting permits

story by Marla Cantrell
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At the June 17 meeting of the Fort Chaffee Redevelopment Authority, trustees approved a resolution regarding the definitive agreement for the development of the 200,000 square foot Mitsubishi Power Systems wind turbine plant, which is expected to cost $100 million and employ 400 once it’s fully operational.

Construction is expected to begin later this year and be should be completed in 2011.

The resolution sets out eight incentives provided by the FCRA:
• Deed 90 acres to Mitsubishi or the city, at no cost to Mitsubishi;
• Provide a survey and legal description;
• Provide an extended coverage title insurance policy  for as long as Mitsubishi leases the property;
• Guarantee the survey and title policy will not have liens or encumbrances;
• Provide a current Phase 1 environmental report;
• Provide dirt and shale from time to time to assist in site development;
• Relocate a drainage canal near Custer Blvd.; and,
• Designate certain areas for rail and road rights-of-way.

This action comes just two days after the city of Fort Smith approved its incentive package, which included approximately $1.626 million in road and water/sewer infrastructure support for the plant, and the issuance of $75 million in Industrial Revenue Bonds. Mitsubishi is wholly responsible for repayment of the bond proceeds.

A Mitsubishi delegation, including James Lillie, who will be the general manager for the new Chaffee plant, attended the meeting. Lillie will be moving from Orlando, Fla. Lillie said recent developments, such as President Obama’s address this week concerning BP could spur even more interest.

“I would think, based on the population’s response (to the gulf oil spill), that it could have a positive effect on alternative energies,” Lillie said.

HUNTING, SHELTERS
The board also approved a plan to issue 100 permits for archery deer hunting on approximately 4,000 acres of Chaffee land for 2010-2011. The permits will cost $150 and hunters can apply beginning in July. The hunt runs from October until February. Last year, hunters killed 31 deer on Chaffee land.

Ivy Owen, FCRA’s executive director, said he sees a day when the development of Chaffee land will end bow hunting there.

“We have a lot of deer at Chaffee,” Owen said. “As we make more and more progress, and more property is sold, we won’t have a deer hunt.”

In other business, John Furness, executive director of Comprehensive Juvenile Services, asked for a two year extension on a contract his agency has with the FCRA.  CJS purchased two acres near Wells Lake for $65,000 in 2005 and planned to build a 5,600 square foot, $1.4 million dollar facility. The facility would replace the emergency youth shelter in Cecil, Ark, which has been open since 1984.

CJS houses children between 10 and 17 in a six-county area who need a temporary home, due to family problems, or if they have issues of delinquency. Out-of-state runaways are also taken to the facility. The Chaffee Crossing location would have room for 16 – eight girls and eight boys. The average stay is 25 days.

But the funding to build the new facility has not materialized. The agency has only $220,000 set aside for construction, although Furness said he and his board are working diligently to find the needed revenue. The contract specified CJS start construction by June.

The board denied the two year extension, but did agree to allow CJS one year to secure funding. The FCRA will have the option at that time to buy the property back.