FCRA director hints of landing another new company

story by Marla Cantrell
[email protected]

Ivy Owen, executive director of the Fort Chaffee Redevelopment Authority, walked trustees through his mid-year progress report on June 17, with a tease of the possibility of another big company landing at Chaffee Crossing.

He focused on successes, such as:
• 3 active housing developments with 150 new houses in place;
• A University of Arkansas at Fort Smith quest for grant money to bring a $3 million training facility to Chaffee Crossing; and,
• A new retail development at Highways 59 and 22 in Barling.

But the most interesting part of the meeting came at the finale, when Owen hinted at a new business that could come to Chafee Crossing — one so big it would require hundreds of rail cars a day to accommodate production.

“We have another client with legs under it,” Owen said. “It’s progressing. They have a signed contract in hand from the federal government to produce a product that will eventually end up at Chaffee and with the potential, and this is mind-boggling to me, of 300 rail cars a day. One hundred in, one hundred out and one hundred with raw materials. When you tell that to a rail company, that gets their attention. That’s one reason Union Pacific is now calling us.”

If the new company materializes, it would be one of several in a recent string of impressive new companies to sprout up at Chaffee Crossing. Mitsubishi Power Systems is set to build a $100 million plant beginning in October. Mars Petcare, Graphic Packaging and Umarex are building or have built multi-million, modern manufacturing and distribution operations within the past four years.

RAIL ISSUES
The announcement came immediately after Owen updated the board on his continuing challenge of getting the rail extended into the industrial area. But the real drive lies in a promise made to the soon-to-be-constructed $100 million Mitsubishi wind turbine plant.

“My primary concern is to get Mitsubishi served,” Owen said. “They’re expecting it by August, 2011. … RITA’s (Regional Intermodal Transportation Authority) involved in getting funding, we’re involved in other funding sources, including Mitsubishi. Umarex would be a rail user. Every piece of raw material they use comes from Asia and comes through the U.S. In California. It would save them a tremendous amount of money.”

Mitsubishi must have one rail directly into their plant to satisfy the international trade zone. They have committed to contribute “a considerable amount of money” for the project.

Owen recently met with Fort Smith Railroad, A&M and Union Pacific to discuss the Authority’s options for industrial service. The contract with A&M to operate the rail at Chaffee runs through September, 2011. Owen believes Chaffee and A&M have defaulted on that contract, simply because there has not been enough business to support the rail on Chaffee land.

Union Pacific has presented a plan to address many of the needs at Chaffee. A&M is active as well, working with the FCRA on the design of a new road bed to service the area.

Graphic Packaging is also in need of rail service; however, their agreement is with Kansas City Southern and does not allow them to use A&M or Union Pacific, according to Owen.

BIKE TRAIL
Sebastian County is working with the FCRA on a 53 acre bike trail, which will arc around the Arkansas River Valley Nature Center, cross Massard Road, continue southwest and make a loop back into Ben Geren Park. Sebastian County Judge David Hudson said there is $70,000 that was paid to the FCRA for  easements. He said that money could be used for amenities not in the current plan.

“We need a parking lot up on the northern end on Massard, because people start bike and running and walking there,” Hudson said. “I’m thinking that could be an asset to the housing developments nearby because it would give residents an exercise option.”
Hudson asked for additional easements, for wider paths and future growth of the path.

PROPERTY LISTING
Owen said one of the best moves the FCRA has made was teaming up with listing agents to help sell  property at Chaffee. Commercial and industrial lots are listed on the ADEC website, although much of that land is not cataloged because it has not yet been platted. The system uses a block and parcel number to identify parcels of land.

“The goal right now is to get it on the website with section, township and range and identified as Chaffee Crossing,” Owen said.

The board agreed to make marketing the unsold land a top priority for the remainder of the year.

BUDGET
The board also discussed the FCRA’s budget and how it is formatted. Hudson suggested the budget, which now combines its operating and capital budgets, be separated. He said it would be easier for board members to follow and could simplify the accounting process.

Owen agreed, saying the FCRA had grown so rapidly that the budget, which had worked well in the past, needed to be revamped.