Arkansas lawmakers seem consumed with legislating about abortion, guns and other social issues, but another issue is on their plate that requires close and immediate scrutiny.
Gov. Mike Beebe last week announced a proposed superproject, a $1.1 billion steel mill, the first economic development project to take advantage of Amendment 82 funding.
The financing package requires legislative approval of $125 million in state economic development spending, which is authorized under the amendment adopted by the people of Arkansas in 2004 and amended in 2010.
Most of the state money for this project, $75 million, would be an outright grant while the other $50 million would be a loan Big River Steel LLC must repay.
Investors would put in the bulk of the money to build the Mississippi County mill near Osceola, where developers promise to hire 525 workers with an average salary of $75,000 a year. Plus, an estimated 2,000 jobs would be created during construction of the mill, providing an immediate economic infusion to the state’s economy.
Beebe’s announcement came before a packed conference room of people excited to hear of this potentially life-changing development for the Mississippi Delta town.
There were broad smiles on the faces of people from the region and of the developers who put the deal together with Big River Steel.
John Correnti, the company’s CEO, heads the investors backing the project. He spoke glowingly of the Arkansas “farm boys and farm girls” the company will equip and train for steel mill jobs, which he suggested could actually average $100,000 a year.
Correnti said he saw what they could do 28 years ago when he brought another steel mill to Arkansas and is confident they’ll make Big River successful, too.
He also emphasized the desirability of the mid-America site, with the Mississippi River on one flank with proven levy protection as well as railroad and interstate connections and a reliable electricity supply.
If the bond issue is made and all regulatory approvals given, construction could begin as soon as Aug. 1, according to Correnti.
Both he and the governor mentioned construction jobs and the potential for related economic development involving suppliers and steel consumers.
The governor’s office and the professionals in the Arkansas Economic Development Commission and a half-dozen other state and local government agencies have been involved, as has Entergy Arkansas Inc., which will provide critical power to the mill site.
But the process now requires due diligence by the Legislature, which started hearings this week.
The Senate met Monday as a committee of the whole and the House was to do so today to launch its required inquiries.
News reports indicate there are a lot of questions to be answered, not the least of which is about the intent of the Arkansas Teacher Retirement System to invest $60 million in the project.
That’s actually a tiny share of the retirement system’s total investments, but another reason lawmakers must meet their responsibility to examine the project carefully. The state’s teachers will be among the investors if the project goes through.
Once the project was presented to them, lawmakers had just 20 days to respond.
Theirs is the first public discussion of this investment of state dollars in the project and it needs a full airing to win the confidence of state taxpayers.
Surely, lawmakers can set aside some of that social legislation long enough to get this job done.
BRENDA BLAGG IS A FREELANCE COLUMNIST AND LONGTIME JOURNALIST IN NORTHWEST ARKANSAS.
Opinion, Pages 5 on 02/06/2013