Quorum Court to again take up bond issue for Simmons Foods plant in Northwest Arkansas

BENTONVILLE -- A public hearing on a proposed $400 million bond issue for Simmons Foods tops the agenda for Tuesday's meeting of the Benton County Quorum Court.

An ordinance authorizing the industrial revenue bond issue is up for a second reading at Tuesday's meeting, set for 6 p.m. in the Quorum Courtroom in the County Administration Building at 215 E. Central Ave. in Bentonville.

Simmons Foods plans to build a 400,000-square-foot poultry processing facility at 9802 Arkansas 59 South, according to information submitted to Benton County. The building site would take about 100 acres.

The Quorum Court did the first of three required readings of the ordinance authorizing the bonds Thursday. The county will hold a public hearing before the second reading. The third and final reading is set for the April 26 meeting.

David Jackson, Simmons president and chief operating officer for prepared foods, has said the company needs to move from its location in downtown Decatur because space is limited, and the company wants to expand the operation. Jackson said the company has about 700 employees at the Decatur location and will have about 900 at the new location when it opens. Over a period of three to four years, the company plans to expand to up to 2,300 employees, he said.

The Simmons plant would operate 24 hours a day Sunday through Friday with three shifts each day -- two production shifts and one cleanup shift, Jackson said. He estimated the plant will have trucks driving on and off the site at a rate of about one truck every six minutes. Jackson said the company has asked for a traffic signal at the plant entrance and is awaiting the Arkansas Department of Transportation's decision on the request. Turn lanes will be added to Arkansas 59 for both northbound and southbound traffic, he said.

Businesses using industrial revenue bond financing from the state can negotiate with the local community for property tax relief for eligible businesses in the form of payment in lieu of tax agreement, as Simmons Foods has done in this instance.

Benton County Judge Barry Moehring said the Simmons Foods plant in Decatur generates about $154,283 in property taxes. Under the payment in lieu of tax program, the company would pay $1,092,000 annually as a payment in lieu of taxes, increasing the property tax revenue by about $937,717. The amount is less than the company would pay in assessed property taxes at the new site.

Moehring said the 870-acre parcel of land near Gentry where the company is building the new plant currently generates about $2,400 in property taxes.

Residents have opposed plans for the new facility throughout the county planning process and during the initial Quorum Court meeting at which the bond issue was considered.

More than 50 people attended a Dec. 6 Planning Board meeting, with people sitting in the aisles and standing in the doorway throughout the public hearing about the Simmons plant proposal. Residents voiced concerns about increased traffic, adverse effect on property value, possible groundwater contamination and the potential leaks of hazardous chemicals used in the facility.

Residents made similar comments at the Feb. 22 Quorum Court meeting, where the bond issue ordinance was on its first reading.

Jim Gittlein, a nearby resident, said during the public comment portion of the Feb. 22 meeting the plant, which he referred to as "a slaughterhouse," shouldn't be allowed in a residential and agricultural area.

"The Planning Commission opened a can of worms when they allowed this to move into a residential area," Gittlein said.

Teresa Lowry of Gentry said she and other residents think they have been ignored by the company and the county.

"I think they did not consider the thoughts and feelings of people in the area," Lowry said. "They just steamrollered over the top of us."

Metro on 03/26/2018

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