Funding requests amended at works board meeting
EL DORADO — The El Dorado Works Board amended Tuesday an earlier funding request that is part of an incentive package to woo two industry prospects to the business park on Champagnolle Road.
In June, the board approved a $53,000 request from the El Dorado-Union County Chamber of Commerce to help install water and wastewater infrastructure for prospects who are looking to purchase and occupy two lots in the business park, which is just east of U.S. 167.
At the time, Mike Dumas, interim president and chief executive officer for the chamber, said that one of the prospects is an existing business that is looking to build a two-story headquarters on the site.
The other, Dumas said, is a national distribution company (lighting and plumbing fixtures) with plans for a 25,000-square-foot facility that will start with eight to 10 employees and an eye toward future expansion.
He reiterated Tuesday that the finalization of the deals is pending a commitment of community support for water and wastewater infrastructure.
Dumas told El Dorado Works Board members that the $53,000 quote from the El Dorado Water Utilities included a grinder that will serve the two businesses, a wastewater line to feed into an existing lift station at the nearby El Dorado-Union County Recreation Complex, a water-line tap and two fire hydrants.
He said the amount provided by the water utilities did not include the costs for the necessary fire protection infrastructure — the hydrants and related water lines —, and the total cost of the project would be $79,100.
EWB chairman Robert Reynolds inquired about reciprocity from the business prospects for incentives that would provided by the city.
“Do we have to build it before they close on the deal, or once we agree to do it, they will close?” Reynolds asked.
“The second one. It’s a local incentive. They’re waiting on our commitment,” answered Brandon Barnette, economic development associate for the chamber.
Mayor Frank Hash said the city would own the infrastructure.
Barnette also reminded board members that Union County is chipping in by agreeing to build access roads for the facilities.
The board approved the request for up $79,100 and agreed to take its recommendation to the El Dorado City Council on August 18 for final approval.
EWB treasurer Alan Gober said the money, if approved by the city council, will come from the economic development (commercial and retail development) category of the El Dorado Works sales tax.
Financial report
In other business, Gober provided financial reports for the El Dorado Works tax, for which collections started last October, and the now expired El Dorado Forward tax.
Gober said the former tax has a balance of $3.4 million and is taking in an average of $400,000 a month.
He said approximately $4.1 million has been committed from the tax for projects that include a lighting/electricity installation project at the El Dorado-Union County Recreational Complex ($185,000 to complement a state grant of $50,400); $450,000 to develop a feasibility plan for planned improvements to the U.S. 82B corridor through El Dorado; $200,000 for repairs and upgrades to the EWU’s recycled water irrigation system; an additional $3.2 million for El Dorado Festivals and Events, Inc., (the city previously pledged $9.02 million from the El Dorado Forward tax toward the EFE plan to develop an arts and entertainment district in downtown El Dorado); and the $79,100 that was approved for the business park infrastructure project.
Hash inquired about the nearly $10.2 million balance for the eightyear El Dorado Forward tax, which sunset on June 30, 2015.
Gober said that as of July 31, the El Dorado Forward account has collected $4,525.58 in interest and has commitments of $8.7 million.
Hash homed in on $2 million that had been budgeted to assist with a prospective industry — Chinese company Shadong Sun Paper — that was considering El Dorado as a possible location for its first North American facility, a pulp mill.
Shadong selected Arkadelphia, and Gober said the prospect is off the table.
When Hash asked if the $2 million could be “unallocated,” Reynolds said, “There’s another possibility. It’s similar, not the same, but it might fit that footprint. It’s an additional prospect that came along because the paper mill didn’t work out.”
“So how do you determine if (funding) comes from El Dorado Works or (El Dorado Forward)?” Alderman Billy Blann asked.
Hash said the EWB makes the decision, and Reynolds said there is a logical process to follow.
He referred back to Shadong, saying there had been a total funding request of $4 million to provide local incentives for project — $2 million from El Dorado Works, which was in the planning stages and had not yet been established at the time, and $2 million from El Dorado Forward.
Gober also noted that $156,557 was deducted from the El Dorado Forward 2016 balance because the money was actually paid last year toward the $1.9 million corporate hangar construction project at South Arkansas Regional Airport at Goodwin Field.
He said the amount was inadvertently charged to the SARA budget, and the mistake was caught during a legislative audit.
City treasurer Bonnie Wyles has since made the correction on the books, Gober said.
The city committed a total of $850,000 toward the $1.9 million hangar, which was completed earlier this year.
Gober also said there was an overage of $100,000 in the 2016 budget for the El Dorado Municipal Auditorium renovation project.
The city committed $5.6 million to cover the project, and $4.39 million was budgeted this year. Gober said $4.49 million has been paid for the project, which was completed recently.