BATESVILLE Copeland to open facility, will create 390 jobs

Officials say incentive effort highlights need for tax

By Amy Widner

LITTLE ROCK — Officials said negotiating the opening of an Emerson Climate Technologies Copeland Scroll compressor manufacturing facility in Batesville further convinced them a sales tax to support countywide economic development is necessary.

Jonah Shumate, Batesville Area Chamber of Commerce president and chief executive officer, said last week’s announcement that Copeland will take over the building being transitioned out of service by another Emerson division, White-Rodgers, came after months of teamwork at the city, regional, state and national level. Gov. Mike Beebe, U.S. Sens. Blanche Lincoln and Mark Pryor and the staff at the state Economic Development Commission and the U.S. Economic Development Administration all helped with the deal, and Shumate said passing a sales tax to fund economic development would ensure that in the future the county could help itself.

“We need to get this in place so next time we don’t have to go around with our hand out for help,” Shumate said. “If we had the funds to back up our own incentives pack-age, we could say, ‘Here’s what we can put on the table ourselves.’ And hopefully, we can do even better next time.”

Batesville Mayor Rick Elumbaugh said the city, county and its residents must realize communities across the nation are interested in companies like Emerson.

“If we are going to continue to recruit industries to come to this area, it is so crucial that we do move forward with an economic development tax,” Elumbaugh said. “[With this deal] we saw how important it is. It’s difficult enough going to the table when you have nothing to offer, but on top of that we have to be able to compete with other communities statewide and nationwide.”

The Copeland division is predicted to create 390 jobs over 72 months, according to press releases from several sources. Incentives for the project came from federal, state and local sources. The announcement comes after a couple of plant closings - GDX Automotive in November 2007 and White-Rodgers in February 2008 - and the Copeland facility will be the first new company to come to Batesville in 20 years, Shumate said.

The Independence County Quorum Court voted Monday to put a quarter-cent sales tax with a five-year sunset to the voters in a special election. The election will probably be scheduled for Tuesday, Oct. 21, Shumate said, but the court was scheduled to set the date after press time. The court also determined Monday that the economic development commission will be headed by an 11-member board - one representative from each justice of the peace district in Independence County.

An economic task force, which has been investigating ways to jump start the county’s economy since the spring by visiting Arkansas towns and regions that have successfully retained and attracted new businesses to the area, concluded their project in June and recommended the tax to establish an economic development program.

The task force recommended the program be overseen by a board of directors whose expenditures would have to be approved by the Quorum Court. They recommended a half-cent sales tax for seven years.

Elumbaugh said the City of Batesville is 100 percent behind a sales tax for economic development but did not specify an amount.

The Batesville Area Chamber of Commerce voted unanimously Aug. 14 to support a quartercent sales tax that would sunset in five years. Shumate estimated that under current conditions the tax could produce $1 million annually. Shumate said the tax would go toward any projectthat would create, enhance or retain jobs. He hopes the efforts funded by the tax will produce more economic activity in the county, which would result in more funds raised from sales.

“There are a couple of reasons the Chamber went with the quarter-cent,” Shumate said. “We’ve done a lot of work on this, and one of the things we’ve done so far has been feeling people out around town. Half had said go for it and really believe that we could easily get the half-cent the task force suggested, the other half have said that might be a little too much. So we know the quarter-cent has a better chance of passing.

“We also have a history of distrust in this county - a lot of that is changing with some new leadership that really works together. But we want to earn that trust from the community back, and taking a smaller first step is a good way to do that.”

The task force visited officials in Mississippi County, Paragould, Jonesboro, El Dorado and Pocahontas. The group - which included Shumate and former state Sen. and local attorney Bill Walmsley, among others - also recommended the county bring in a professional consultant to help develop a strategic longterm economic plan, Shumate said.

They concluded any economic development group should be transparent with specifically laid-out goals - recommendations from other cities and counties that have passed economic development sales taxes. Shumate said that is the next step now: to spell out as much detail and assurance of transparency before the proposal goes to the voters.

As the White-Rodgers plant shutdown continues, construction will start to ready the Copeland facility, creating construction jobs and causing other trickle-down economic effects, Shumate said. According to a press release from Lincoln’s office, Copeland will invest $120 million in the site, and the average wage will be $14.51 per hour. Initially the plant will employ 30 people, and Copeland plans to start production in 2010.

- awidner@ arkansasonline.com

Three Rivers, Pages 51, 52 on 08/21/2008