Developers Turning to Benton County Towns

Arkansas’ northwestern corner makes for a nice mural for the state. But many believe Fayetteville may have painted itself into a corner in the real estate market.

Other towns in Washington County and most of Benton County are the beneficiaries of Fayetteville’s planning and zoning requirements, which range from confusing to controversial.

Most of the local businessmen and businesswomen we talked to, even those based in Fayetteville, believe Fayetteville is taking a back seat to more aggressive communities in the area. And 2001 will likely prove as much with the continued boom in development in other towns such as Bentonville, Rogers and Springdale.

In recent elections, Fayetteville has elected more liberal officials, which translates into a more conservative approach when it comes to building and growth.

While many will be quick to blame or credit Fayetteville’s mayoral change in 2001, it is worth noting that the perceived anti-development movement was well-established before Dan Coody ousted incumbent Fred Hanna.

Coody, who will take office Jan. 2, said the perception of Fayetteville being more strict with its building requirements is a misinterpretation.

“A lot of our restrictions have been overlooked and unenforced,” Coody said. “Some [businesses] have shied away from Fayetteville because of the amount of controversies we’ve had in town. But they were caused by different issues, and as soon as we resolve the way we’ve done business here and make the landscape more even, eliminate the double standards and focus on what the citizens of Fayetteville want to focus on, we’ll see businesses wanting to locate here.”

Regardless, Fayetteville’s strict sign and tree ordinance has scared away more than one developer.

And Howard Hamilton, executive vice president and loan manager for Arvest McIlroy Bank, said the large home market had slowed in Fayetteville.

“I think you can see that, with the large spec houses sitting around unsold,” Hamilton said. “Part of that reason has been that employees are getting to the point they can’t afford to buy in Fayetteville. We’ve made it too expensive.”

Farmington has enjoyed a recent development boom, with some crediting the new Valley View Golf Course and others the aggressiveness of Mayor Ernie Penn.

But Springdale has enjoyed the greatest boom in Washington County.

“At this point, I would say Springdale is ahead of Fayetteville in development and construction,” said Joy Drummonds, senior vice president of Washington County Abstract.

The Springdale Planning Commission recently outlined a goal of five new elementary schools, one middle school, a junior high and another senior high to be built by 2010.

Even more noticeable is the development in Benton County, particularly around Interstate 540.

“Benton County is going to be the strongest area because everything hinges on what Wal-Mart does,” said Bill Lazenby, owner of Lazenby Construction and Lazenby Real Estate. “Bentonville is going to be real strong. There is so much going on in Bentonville, and it’s so hard to find property to develop in Fayetteville.”

Just west of Bentonville is the small town of Centerton, located near both Wal-Mart headquarters and the Northwest Arkansas Regional Airport in Highfill.

Drummonds called Centerton “a real hot spot.”

“The business [Wal-Mart and the airport] are generating is the driving force behind most of our business,” said Mark Clinard, vice president of Clinard Construction in Bentonville.

Fayetteville’s CMN Business Park will be one of the largest commercial developments in Northwest Arkansas in 2001.

“We are growing,” Coody said. “And I would venture to say there are many more people and businesses coming [to Fayetteville] than are leaving.”