The Mayor’s Task Force on Economic Development met March 16 on Zoom with three representatives of the Arkansas Economic Development Commission (AEDC) – Director of Community Development Matt Twyford, Senior Project Manager Jack Thomas, and Emily Cooper Yates, Northwest Arkansas Regional Manager – to learn more about state incentives for economic development projects.
Thomas said incentives available include Advantage Arkansas, a state income tax credit earned each tax year for a period of five years. ArkPlus is a state income tax credit program that provides tax credits of 10 percent of the total investment in a new location or expansion project. There is also a payroll credit program with the ability to offset income taxes. Thomas said there are also infrastructure assistance dollars that can be used for public infrastructure to support an economic development project. There are also programs available to assist with workforce training.
Thomas said it is possible that tourism incentives could be applicable for some projects in Eureka Springs. There are incentives for projects such as theme parks, educational centers and, in some scenarios, lodging facilities mostly tied to convention centers.
Opportunities outside of the AECD programs include the possibility of creating a federal Opportunity Zone, such as the one in Berryville. Twyford said law firms that work with Opportunity Zone investors may have clients who would be interested in a project in Eureka Springs. According to the IRS, Opportunity Zones are an economic development tool that allows people to invest in distressed areas in the U.S. with the purpose of spurring economic growth and job creation in low-income communities while providing tax benefits to investors.
Sandy Martin, chair of the task force, said the mayor is trying to diversify the economy of Eureka Springs so it is less dependent on tourism. “Tourism is a key part of our economy, but we are trying to grow Eureka into even more of an economic hub than we already are,” Martin said.
The city is also interested in doing more to promote one of the area’s strongest assets, outdoor recreation. Martin and Mayor Butch Berry have a meeting planned soon with Katherine Andrews, who heads the newly created Office of Outdoor Recreation with Arkansas State Parks.
In earlier task force meetings, it was discussed that the small size of Eureka Springs and its mountainous terrain can make finding sites for large projects difficult. The same factors make it challenging to attract new housing developments, and the availability of affordable housing is an important consideration for new businesses and industries. The task force is currently working on several efforts to promote affordable housing. In addition to making the area more attractive for new economic developments, there is also a need to provide reasonably priced housing for people who already live in Eureka Springs.
Martin said at the recent meeting that they are looking at economic development from a county-wide perspective.
“We do not like to just work in the silo of Eureka Springs,” Martin said. “We have to think of the county assets we have together. For example, all three school districts in the county are involved in the C4 Carroll County Career Center that trains people to work in local industries. It has been crazy popular and successful.”
Martin said there may be opportunities in Berryville for a music studio. Berryville also has a 250-acre industrial park that is under development. Martin said some of the development ideas being discussed for Eureka Springs include a culinary school, locating a branch of a college or trade school here, and opening up a small home manufacturing plant.
After being asked on the status of bringing reliable broadband to Eureka Springs, Berry said we are not nearly as close to success as the city thought six months ago. Martin said it is problematic that the Arkansas Legislative Council changed federal state Rural Connect funding to expand reliable internet being changed from a grant to a reimbursement program. She said small companies such as the one that had applied for a $16-million grant to provide broadband to Eureka Springs, Holiday Island and Eureka Springs West are not as able to finance the project and wait for reimbursement as larger companies.
Martin said that the change from grants to reimbursements favors large areas and companies over smaller rural areas, and makes it less competitive.
“We need to make noise,” she said. “It seems like the big guys are getting all the money and that means Eureka Springs and Carroll County will be frozen out again. We are hoping that problem will be solved in the next month or so.”
Task force member Kent Turner suggested people call Sen. John Boozman.
“Boozman told me there was all kinds of money for broadband,” Turner said. “He needs to stand behind that.”
Banker Jason Tenant said he would make contact with Boozman and U.S. Rep. Steve Womack, as well. Womack was the sponsor of the bill to collect internet sales tax for municipalities. Martin said he understands the economic impact of the internet and would be supportive.
Martin said they got a strong letter of support for Carroll County Internet from Womack, and that the project was also endorsed by state State Sen. Bob Ballinger and AR House Rep. Harlan Breaux.
Martin suggested contacting the Director of Arkansas Rural Connect, Steven Porch, members of the Arkansas Legislative Council, Boozman and Womack. She will follow up with contact information.
Another participant in the meeting, Kimberly Clark, expressed concern about the employment needs of the elderly and people with special needs.
“There are a lot of elders who could work with a little more training,” Clark said. “The special needs people are getting totally left out. How could we develop something to help provide jobs for the elderly and those with special needs?”
Clark said she has been talking with the U.S. Department of Human Services and the U.S. Department of Commerce regarding solutions.
Berry is in contact with U.S. Department of Housing and Urban Development and will report at the next meeting.