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HomeMy WebLinkAbout74-01 RESOLUTIONRESOLUTION NO. 74-01 • A RESOLUTION AUTHORIZING THE CITY OF FAYETTEVILLE TO APPLY TO THE STATE OF ARKANSAS DEPARTMENT OF FINANCE AND ADMINISTRATION FOR A GRANT FROM THE ECONOMIC DEVELOPMENT OF ARKANSAS FUND FOR CON- STRUCTION OF WATER AND SEWER LINES AND STREETS NECESSARY TO DEVELOP THE ARKANSAS BUSINESS TECH- NOLOGY PARK. WHEREAS, the City of Fayetteville, in conjunction with the University of Arkansas and the Fayetteville Chamber of Commerce, employed the firm of Hammer, Siler, George and Associates to develop market potentials, site planning, and costs associated with the Arkansas Business Technology Park development; and WHEREAS, the study has been completed, and it is now time to improve the Business Technology Park by constructing the required streets and water and sewer lines necessary for the development of the Park; and WHEREAS, the cost of these developments are estimated at $16,000,000; and WHEREAS, the Arkansas Department of Finance and Administration has funds available through the Economic Development of Arkansas Fund Commission, to which we may apply for either a grant or loan; and WHEREAS, Paragraph 7(a)3 of the Economic Development of Arkansas Fund Commission Regulations requires an ordinance, resolution, or other specific authorizing instrument or action reflecting the applicant's authority for making applicatiOon to the Commission. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. Mayor Dan Coody or his authorized representative is designated as the authority for making application on behalf of the City of Fayetteville, Arkansas, for a grant to aid in the construction of the water and sewer lines and streets at the Arkansas Business Technology Park. PASSED AND APPROVED this 6 day of '4-nz-, 2001. APPROVED By: • • ATTEST BY: fia G"��- eather Woodruff, City Clerk res. 74-01 FAYETTEVILLE THE CITY OF FAYETTEVILLE. ARKANSAS DEPARTMENTAL CORRESPONDENCE • To: Jim Crider, Chamber of Commerce From: Heather Woodruff, City Clerk Date: June 18, 2001 Attached is a copy of the resolution regarding the Arkansas Business Technology Park. The original will be microfilmed and filed with the City Clerk. cc: Nancy Smith, Internal Audit M NAME OF FILE: Resolution No. 74-01 CROSS REFERENCE: 06/05/01 Resolution No. 74-01 06/18/01 Departmental Correspondence to Jim Crider, Chamber of Commerce, from Heather Woodruff, City Clerk NOTES: City of Fayetteville, Arkansas PLICATION FOR GRANT IS'i` ..: CE From T Economic moi® Arkansas Fund TABLE OF CONTENTS Transmittal Letter City Council Resolution No. 74-01 Support Letters Application for Assistance Arkansas House of Representatives City of Bentonville, AR City of Rogers, AR City of Siloam Springs, AR Northwest Arkansas Council Grant Application Form Aerial Photo of Site Overall Site Development Plan Benefits Expenditures and Projected Costs Estimated Costs of Development Phase I Map of Phase I Master Plan Phase II Phase III Phase IV Phase V Prospect Letter to Arkansas Department of Economic Development Seeking Incentives From the Advantage Arkansas Program FAYE KVILJ.L 1 1 THE CITY OF FAYETTEVILLE, ARKANSAS July 16, 2001 Ms. Carla Wooley DFA Coordinator for the Commission Economic Development of Arkansas Fund Commission c/o DFA - Director's Office P.O Box 3278 Little Rock, AR 72203 SUBJECT: Grant Application for Infrastructure Improvements Dear Ms. Wooley, It is a pleasure to forward the attached "Application for Grant Assistance" from the Economic Development of Arkansas Fund. The Fayetteville City Council authorized participation in your grant program on June 5, 2001 (see Resolution No. 74-01 attached). Essentially, the City of Fayetteville seeks $1,147,640 to aid in Phase 1 construction of the water and sewer lines and streets at the new Arkansas Business Technology Park. The approximate time necessary to complete Phase I will be about 12 months from the time funds are made available. In addition to Phase I, there remain Phases II through V to be completed in subsequent years. Total estimated costs of infrastructure development for all phases are $16,000,000. Naturally, we hope to return to the Economic Development of Arkansas Fund Commission to meet the needs of Phases II through V as park development advances. Thank you for your consideration of this most worthwhile project - the first of its kind in Arkansas. Should you have questions, or if I can be of any further assistance to you, please do not hesitate to call. Sincerely, Dan Coody Mayor 1113 WEST MOUNTAIN 72701 501 521.7700 FAX 501 575-8257 RESOLUTION NO. 74-01 A RESOLUTION AUTHORIZING THE CITY OF FAYETTEVILLE TO APPLY TO THE STATE OF ARKANSAS DEPARTMENT OF FINANCE AND ADMINISTRATION FOR A GRANT FROM THE ECONOMIC DEVELOPMENT OF ARKANSAS FUND FOR CON- STRUCTION OF WATER AND SEWER LINES AND STREETS NECESSARY TO DEVELOP THE ARKANSAS BUSINESS TECH- NOLOGY PARK. WHEREAS, the City of Fayetteville, in conjunction with the University of Arkansas and the Fayetteville Chamber of Commerce, employed the firm of Hammer, Siler, George and Associates to develop market potentials, site planning, and costs associated with the Arkansas Business Technology Park development; and WHEREAS, the study has been completed, and it is now time to improve the Business Technology Park by constructing the required streets and water and sewer lines necessary for the development of the Park; and WHEREAS, the cost of these developments are estimated at $16,000,000; and WHEREAS, the Arkansas Department of Finance and Administration has funds available through the Economic Development of Arkansas Fund Commission, to which we may apply for either a grant or loan; and WHEREAS, Paragraph 7(a)3 of the Economic Development of Arkansas Fund Commission Regulations requires an ordinance, resolution, or other specific authorizing instrument or action reflecting the applicant's authority for making applicatiOon to the Commission. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. Mayor Dan Coody or his authorized representative is designated as the authority for making application on behalf of the City of Fayetteville, Arkansas, for a grant to aid in the construction of the water and sewer lines and streets at the Arkansas Business Technology Park. PASSED AND APPROVED this 7 day of untie—, 2001. APPROVED By: ATTEST '.- AeV eather Woodruff, City Clerk res. 74-01 1 1 1 REPRESENTATIVE S Madison 57 ocIchff Road Fa ovine, AR 72701-3809 Ph 442.2997 Residence/FAX s isonc@arbleg.state.ar.us D1RICT 8 Counties: Part of Washington County CIMITTEES Revenue and Taxation Ills; Use, Miscellaneous Taxes and emptions Subcommittee Choi rparson, Ag. Children and Youth, Legislative ' aMilitary Affairs Joint Performance Review Joiltudget 1 1 1 1 1 1 1 1 1 STATE OF ARKANSAS c7�,ce October October 26, 2000 Economic Development of Arkansas Fund Commission c/o DFA -Director's Office P.O. Box 3278 Little Rock, AR 72203 Dear Commissioner. Fayetteville's Research and Technology Park is becoming a genuine asset to our region and state. Cooperation with Southwestern Bell has meant a tremendous technological advantage for the Park with the placement of a fiber optic hub, certain to be a major attraction for high- tech businesses. Many of our highly skilled and professional workers leave Arkansas for better opportunities. We desperately need to keep and expand our upper middle class. This Park will give our state the competitive advantage it needs to grow this labor pool. We all appreciate the assistance previously offered by the EDAFC. Please grant our request for funding the Arkansas Research and Technology Park. Thank you for your consideration. Sincerely, Sue Madison State Representative SM/rlw July 14, 1998 Economic Development of Arkansas Fund Commission C/O DFA - Directors Office P.O. Box 3278 Little Rock, AR 72203 RE: City of Fayetteville's Application for Assistance in the Ark. Research and Technology Park To The Commission. As Mayor of the City of Bentonville, I wish to support this grant application. I believe it is imperative that a Research and Technology park be established in Arkansas. Since this type of facility is usually dependent on being close to a university, Fayetteville is the logical choice. The development of a Research and Technology park will ensure that most of the graduates in this area will remain in Arkansas and not go out of state. The location of the park site is ideal, since it is centrally located adjacent to Highway 71 and will be easy to reach by air or ground transportation. I ask that you look favorably on the city's request for aid so that Phase I of the project can be undertaken Sincerely, Terry Black Coberly, Mayor TBC/sg cc: Mayor Fred Hanna, City of Fayetteville EOE JUL 1 6 1998 CITY OF FAVET TEVILL2 MAYOR'S OFFICE • 117 W. CENTRAL • BENfONVILI.E, ARKANSAS 72712 • (501) 271-3112 • 12 RSGERS ARKANSAS CITY OF ROGERS City Administration Building • 300 West Poplar Rogers, Arkansas 72756 • Phone 621-1117 Economic Development of Arkansas Fund Commission c/o DFA - Directors Office P. O. Box 3278 Little Rock, AR 72203 RE- City of Fayetteville's Application for Assistance in the Arkansas Research and Technology Park To the Commission: As Mayor of the City of Rogers, Arkansas, I wish to support this grant application. I believe it is imperative that a Research and Technology park be established in Arkansas. Since this type of facility is usually dependent on being close to a university, Fayetteville is the logical choice. The development of a Research and Technology park will ensure that most of the graduates in this area will remain in Arkansas and not go out of state. The location of the park site is ideal, since it is centrally located adjacent to Highway 71 And will be easy to reach by air or ground transportation. I ask that you look favorably on the city's request for aid so that Phase I of the project can be undertaken. Yours truly, Joui Sampier Mayor JS:sb Main Street City The Cay of Rogers don not dlsandmte on the basis of race, color, national origin. sea, religion. age and • �q handicapped status N employment or the provision of services. 'FREE CITY USA ++ CITY OF SILOAM SPRINGS • P.O. Box 80 Siloam Springs, Arkansas 72761 501-524-5136 Economic Development of Arkansas Fund Commission c/o DFA - Directors Office PO Box 3278 Little Rock, Arkansas 72203 RECEn E JUL 22 1998 CITY OF FAYETTEVILLE MAYOR'S OFFICE RE• City of Fayetteville's Application for Assistance in the Arkansas Research and Technology Park To the Commission: As Mayor of the City of Siloam Springs, I wish to support this grant application. I believe it is imperative that a Research and Technology Park be established in Arkansas. Since this type of facility is usually dependent on being close to a university, Fayetteville is the logical choice. The development of a Research and Technology Park will ensure that most of the graduates in this area will remain in Arkansas and not go out of state. The location of the park site is ideal, since it is centrally located adjacent to Highway 71 and will be easy to reach by air or ground transportation. I ask that you look favorably on the city's request for aid so that Phase I of the project can be undertaken. Yours truly, / '1 . L. Van Poucke, Jr., ,7 Mayor cc?Mayor Hanna, City of Fayetteville CITY of SPRINGDALE OFFICE OF THE MAYOR CHARLES N. MCKINNEY July 14, 1998 Economic Development of Arkansas Fund Commission c/o DFA - Directors Office P. O. Box 3278 Little Rock, Arkansas 72203 Re: City of Fayetteville's Application for Assistance in the Arkansas Research and Technology Park To the Commission: As Mayor of the City of Springdale, I wish to support this grant application. I believe it is imperative that a Research and technology park be established in Arkansas. Since this type of facility is usually dependent on being close to a university, Fayetteville is the logical choice. The development of a Research and Technology park will ensure that most of the graduates in this area will remain in Arkansas and not go out of state. The location of the park site is ideal, since it is centrally located adjacent to Highway 71 and will be easy to reach by air or ground transportation. I ask that you look favorably on the city's request for aid so that Phase I of the project can be undertaken. CNM/rI Cc: Mayor Hanna, City of Fayetteville Sincerely, eLeam Charles N. McKinney Mayor DOARD OF DIRECTORS John Paul Hammerachmldt Chairperson The Honorable Fred Hanna John Lewis, Vice Chairperson Mayor David Hausam, Secretary/Treasurer City of Fayetteville Alice Walton, Chairperson Emeritus. 113 West Mountain Street JayAllen Fayetteville, Arkansas 72701 Rick Allen Dick Barclay J. NetiBasore, Jr. Dear Mayor Hanna: George Billingsley Jim Blair NORTHWEST ARKANSAS COUNC/L July 28, 1998 Partners in Progress Ederadbeny Since its inception,: the. Northwest Arkansas Council has advocated the establish - Frank Broyles Raymond Bums ment of public and private partnerships which enhance the region's economic well - Dean Cannon carter Paul Carter being through the development of improved infrastructure, the creation of new job John Cooper, Jr. opportunities, and the implementation of programs which provide our people with Charles Cosby Lynn DeVauit the skills required to secure the higher paying jobs of the future. Tommy Deweese David Dubbeli John Elrod The City of Fayetteville, in partnership with Southwestern Bell and the Fayetteville Vic Evans Ken Ewing Chamber of Commerce, has taken the first major steps to create the Arkansas Robert ii Foram Ferrell Research and Technology Park, thereby charting the course for development of Bob L. Gaddy what can be a premier research and technology center of mid -America. In a Sheridan Garrison Ann Henry continuing and ever-expanding partnership with the University of Arkansas, the Michael Hudson Red Hudson project can become a major research institution which creates new job opportunity J.B. Hunt for all Arkansas citizens. Emmett Jones Bob Lamb Curt Loyd Rick Lorene* The Council applauds the farsightedness of the City of Fayetteville, Southwestern David Billl Mathews Bell and the Chamber in moving this project toward fruition, and we strongly David Matthews support the expansion of this public and private partnership to include the State of Clark McClinton David McClinton Arkansas As Governor Huckabee recently said at the opening of his Summit on Rusty McKee Charles McKinney EconomicDevelopment, Dlopment, "Arkansas must find a way to replace manufacturing jobs Ron Montgomery that pay minimum wage - many of which are leaving for developing countries - LloydPeterson Buddy Philpot with technology or knowledge-based jobs. We need to raise the standard of living John Sampler Archie Schaffer instead of maintaining an inadequate one. We have not had the focus on Charles Schariau technology that we intend to have": Mark Simmons Don Smothers Kirk Thompson Walter Tumbow We could not agree more, and we support the City's application for state grant Don Tyson funding for the Arkansas Research and Technology Park. John Tyson Fred Vorsanger Rob Walton Steve Ward Sincerely, RobertWeaverp v�& 1` Perry Webb 09V- FdOh.nnw..._7L0 - George Westmoreland John A. White Doyle 2 Williams John Paul Hammerschmidt Walde Lindsey, Director Chairman 100 West Center, Suite 300, Fayetteville, Arkansas 72701 Phone: (50 11 582-2100 Fax: (501) 582-1919 Economic Development of Arkansas Fund Commission APPLICATION FOR ASSISTANCE FROM THE ECONOMIC DEVELOPMENT OF ARKANSAS FUND DATE: July 16, 2001 PROJECT NAME: Infrastructure for Arkansas Research and Technology Park APPLICANT: City of Fayetteville STREET: 113 W. Mountain Street CITY/ST/ZIP Fayetteville, AR 72701 COUNTY: Washington County PHONE 501-575-8305 FAX 501-575-8316 E-MAIL ADDRESS: ENTITY RESPONSIBLE FOR FINANCIAL MANAGEMENT OF PROJECT: 1. Narrative. (Describe purpose of project and need. Note any attachments.) SEE ATTACHED NARRATIVE 2. Benefits. (Describe benefits in general and include the population of project area, number of persons who will be served, and cost per individual served.) SEE ATTACHED NARRATIVE EDAFC 7/13/99 1 3. Project Cost and Funding. (Attach itemized budget.) Amount requested from Commission $ 1,147,640 Amount of loans or grants from other sources $ 793,460 List other sources: • Economic Development of AR Fund ($193,460) Southwestern Bell Telephone ($600 000) • Amount of local funds contnbuted $ 1.900.000 Other $ • PROJECT TOTAL $ 3,841,100 4. Type of participation requested from Commission. Economic Development Project: Grant xi. Loan_ Other Loan (i.e. natural gas pipeline construction) _ 5. Proposed time schedule for completion of project. (List each phase, if applicable.) Applicant Statement: To the best of my knowledge, all statements of fact contained herein are true and correct as of the datefiCreof. n // Signature of Applicant /(�� (`t'117 Date 7/16/01 Name (please type or print) ''Dan Coody Mayor Title Please retum application form and eight copies to: Economic Development of Arkansas Fund Commission c%o DFA — Office of Budget DF&A Bldg. - 1509 West 7/" St., Room 402 P.O. Box 3278 Little Rock, AR 72203-3278 Date of Commission Review: Amount Awarded: By James Pledger, Chairman EDAFC 7/73/99 2 AI.. t ....N.r �`. ii ti} 4 i 1. .; { X54 "'•irf iiI:.' " .. , '- N. r? -.. fr. ..4,'S.. .:l: r. n. r. ... elf . ; file_. .ya.., "^•,,1 _...--� �: • r 1t• -> a . -.."� ( Rs : Tl ffs:7 a r :.'6Fr.. s''r : it NARRATIVE ARKANSAS RESEARCH AND TECHNOLOGY PARK This grant application seeks to fund development of Arkansas' first research and technology park. The need for the park is based on its close proximity to the University of Arkansas -Fayetteville. At the present time, there exists no site for high-technology and university -related industries in Arkansas. As the only such park in the state, the project will stimulate business, industrial and economic growth in all areas of Arkansas by creating employment opportunities not heretofore available. Arkansas' first research and technology park is located on a 290 -acre site that was purchased for $1,300,000 by the City of Fayetteville in 1988. Essentially, the University of Arkansas' status as a major research institution is the critical linchpin to developing a new Arkansas Research and Technology Park. Engineering, agriculture and the sciences are particular strengths of the University's research program. At the present time, job opportunities within Arkansas for many University of Arkansas graduates do not exist. The High Density Electronics Center (HiDEC) at the University of Arkansas -Fayetteville has lost over 50 graduates (approximately 95 percent of all graduates) to employment opportunities outside the state. The Arkansas Research and Technology Park will serve to further diversify the state's employment base. This phenomenon will level the playing field in the game of high- tech job retention in Arkansas. In addition, it is also anticipated that the Arkansas Research and Technology Park will generate "spin-off" activity. Studies indicate that research parks attract other university, governmental and compatible private business uses. It is assumed that such additional floor space demand will be roughly equal to the research -based absorption. In 1996, the City of Fayetteville hired the firm of Hammer, Siler, George, and Associates as the multidisciplinary team to verify the need for a research and technology park. The firm determined that the park's establishment in the vicinity of the University of Arkansas was essential. The team, then, devised a master plan for park development. The Executive Summary from this report is as follows: * 1. The purpose of the consultant work is to test the feasibility of research park development. * 2. This requires research resource assessment, market analysis, site planning, site development costing and cash flow analysis. 1 * 3. The University of Arkansas has a strong research program which is growing at an impressive rate. * 4. Engineering, agriculture and the sciences are particular strengths of the research program. * 5. The University is undertaking important initiatives to further build the research and technology transfer programs. * 6. Potential floor space absorption in a research park in Fayetteville is estimated, based on the amount of research at the university and the relationship of the amount of research and the amount of floor space absorption which has been achieved at comparable land grant universities with research parks. * 7. Direct, research -based floor space absorption at the research park in Fayetteville will be in the 30,000 to 50,000 square feet of floor area range, during the first five years in which building space is available for marketing. Absorption will increase in subsequent five year periods. * 8. Research parks also attract other university, governmental and compatible private business uses In the Arkansas Research and Technology Park, it is assumed that this additional floor space demand will be roughly equal to the research -based absorption. * 9. The local real estate market is strong, and this will help generate absorption from these other uses. * 10. A survey of 240 businesses familiar with the research resources at the university yielded a 15 percent response and strong indications of interest in having a close relationship with the university. * 11. The proposed research park site is at US Route 71 and State Route 112. The site is convenient to the campus, of adequate size for the early phases of the park and expansion, well served by expressways, has fiber optic linkages and is near needed service uses; and thus, will support the development of the park well. * 12. When developed to the quality standards shown in the site plan, the research park will provide a quality level of business environment not now available, and will market well with the existing Fayetteville Industrial Park. * 13. The proposed site plan will create parcels of various sizes to meet the market, protect the environment, facilitate efficient infrastructure phasing and construction and provide a high amenity environment. The site plan is presented in the report. 2 * 14. Phase I site development costs will total $1,341,100 in construction costs and $310,800 in soft costs. A total of $2,368,000 had previously been spent on the purchase of the land, water line main installation, master plan, economic development program endeavors, and fiber optics hub installation. * 15. The estimated total site improvement construction costs for the five phase will be $9.2 million. * 16. Phase I site improvement construction and related soft costs will total $1,341,100, and land sales revenues for Phase I will be $1,808,200. * 17. In Phase I, the costs will be greatest in the early years when the infrastructure is being installed, and much of the land sale revenues will come in the later years. This will result in a maximum negative cumulative cash flow of $956,100 from these sources. * 18. The University, the City, the Chamber of Commerce and the State will make a strong partnership to make this project a success. A copy of the report entitled "Market Potentials, Site Planning, Costing and Cash Flow For Arkansas Research and Technology Park Development" is enclosed. Listed below are highlights from the master plan process: Phase I — Market potentials & Development Program (completed); A. Of the recommended alternative development programs, Fayetteville chose a research related park with total quality business focus, which offers — 1. Broader, traditional research park use mix 2. Critical University and private anchor facilities 3. Essential quality environment 4. Greater total and early project success 5. 200 acre project size (when fully developed) • 70 Acres of Research -Related • 90 Acres of Business Park Uses • 20 Acres of University, State and Federal • 20 Acres of Supporting Services 3 Phase II — Master Plan & Financial Analysis (completed — see enclosure); A. The park's master plan calls for the following utilization scheme — Land Use Office Retail Light Industrial Sub -Total Future Expansion Grand Total Acres 56 6 63 125 75 200 Acres Square Feet 485,000 60,000 455.000 1,000,000 As can be seen, the 290 -acre site calls for approximately 125 acres to be developed initially. The remainder of the tract would have about 75 acres reserved for future development and contains 63 acres of green space (including linear parks, wet lands, woodlands, and a man-made lake). Phase III — Development & Marketing Strategy (to be pursued upon ground breaking for infrastructure development). The time required for total park development is largely speculative. A nation wide canvass of similar projects has indicated a trend toward development in phases or stages. Thus, the rate at which the incremental phases, or stages, are completed dictates progress toward total development. The first phase would involve construction of streets and utilities for a tract of land approximately 22 acres in size which could accommodate approximately 110,000 square feet of office space and 50,000 square feet of light industrial space. This phase would be developed to create an impressive entrance and formal boulevard to initially portray the larger scale of the full project. The parking would be located to the rear of the buildings and effective and generous use of landscaping for screening would be incorporated. The project would be flexible to combine parcels should the need exist. It is expected that it would take several years to develop Phase I before needing to expand to the next phase based on knowledge of how similar parks have developed throughout the United States. However, during the development of Phase I, work should be on-going to improve the accessibility of the park from the freeway. This could be accomplished by improving the interchange of Highway 112 and U.S. Highway 71, and acquiring the properties located adjacent to Highway 112 and the park. It is estimated that Phase I costs, based on 1997 costs, will be approximately $1.3 million, excluding the cost to develop engineering plans and the cost of inspections during construction (see page 7 for a breakdown of the costs). 4 500 0 500 Feet Arkansas Research & Technology Park BENEFITS In 1994, Arkansas Southwestern Bell Telephone Company awarded an economic development grant to the Arkansas Research and Technology Park. The funding accommodated installation of a $600,000 "Fiber Optics Hub" on the park premises. This "on-ramp" to the information super highway brought the total "sunk costs" at the park site to $2,350,000. While the new park will further diversify the Fayetteville -Springdale -Rogers Metropolitan Statistical Area's (population 267,000) economic base, the nature of the project will benefit ALL of Arkansas. In particular, the high-speed, high- capacity communications links afforded by the "Fiber Optics Hub" are essential tools for high -wage, information -based companies. This instrumentation will prove advantageous for attracting companies involved with electronics, avionics, biotechnology, biomedical and pharmaceutical research. Over the past few years, research and technology have exhibited substantial gains in the stock market. In fact, these sectors of the national economy have sometimes doubled all other investment activity. Such an indicator is a positive harbinger signaling change in America's economic infrastructure. The Arkansas Research and Technology Park will strategically position Arkansans as beneficiaries of this emerging trend -- especially, with regard to increased income. Traditionally, research and technology firms pay higher wages (averaging $45,000 per year) and enrich a region's/state's "brain trust" to ensure the future planning process for an improved quality of life In the long -run, the park will allow many talented and well-trained Arkansans to remain in and contribute to the economy of Arkansas rather than having to leave the state for a career in their chosen field. Arkansas' revenue stream will certainly benefit from this project. The 1,000,000 square feet of new facilities will require an investment exceeding $150,000,000 to fully develop the first 122 acres. Based on a ratio of 400 square feet per employee, the park will employ 2500. An average individual salary of $45,000 for these 2500 employees will annually generate $6,000,000 in personal income taxes for the State of Arkansas. Development of the final 75 acres will only serve to further bolster the State's tax base to provide much needed roads, schools, and other critical infra- structure. When analyzing cost/benefit of this project, it's important to consider the "cost per job" ($9.2 -million / 2530 jobs = $3,636) relative to the grant necessary for funding infrastructure development in the park. This "cost per job" is within acceptable standards typically embraced by state and federal funding agencies. In the final analysis, any technological advances emanating from the Arkansas Research and Technology Park will inure to the benefit of companies throughout the entire state. 5 ARKANSAS RESEARCH AND TECHNOLOGY PARK Expenditures and Projected Costs I. Expenditures through December, 2000: Land Acquisition Economic Development Water and Sewer Construction Master Plan Environmental Total Expended by City of Fayetteville Fiber Optics Hub Installation Total Expended by Southwestern Bell Total Expenses through December, 2000 Projected Funds: Capital Improvements Total Funds Committed $1,300,000 200,000 300,000 100,000 150.000 $2,050,000 $ 600,000 $ 600 000 $2,650,000 $1,250,000 $3,900,000 ARKANSAS RESEARCH AND TECHNOLOGY PARK Expenditures and Project Costs II Estimated costs of infrastructure are expected to cover all phases over a number of years. These figures do not includes the cost of design or construction engineering. Phase I: Sewer Facilities New Pump Station Existing Station Upgrade 10 -inch gravity line 8 -inch gravity line Force main 16 -inch Hwy 112 bong 1 Manholes 200+ gpm capacity Lump Sum 2000 LF 4500 LF 4000 LF 22 Subtotal (with contingency) Water Facilities 12 -inch line 8 -inch lme Fire hydrants 8 and 12 -inch valves Streets 5500 LF 3000 LF 12 20 Subtotal (with contingency) Technology Boulevard Data Crossing and Internet Drainage $ 80,000 50,000 60,000 112,500 80,000 45,000 44.000 $ 471.500 $ 500,000 $ 192,500 75,000 24,000 40.000 $ 331.500 $ 400.000 2000' 4 -lane w/median $1,000,000 2600' of 36' wide street 750,000 400,000 Subtotal (with contingency) Wetland/Nature Creation and Enhancement Total Phase I Estimated Construction Cost $2.150.000 $2.500.000 $1,100.000 $4,500,000 Note: It is anticipated the time necessary to provide streets, water and sewer will be approximately 12 months from the time funds are made available. ARKANSAS RESEARCH AND TECHNOLOGY PARK Expenditures and Project Costs Phase II: Complete street network within southern area of park and add water and sewer infrastructure. Phase III: Construct Trucker's Drive and acquire property around the Hwy 112 entrance. Complete street network for northern area of park and add water and sewer infrastructure. Phase IV: Improve Deane Solomon Road along park boundary. Acquire any necessary nght of way. Phase V Improve I-540 access. Relocate and widen Frontage Road. Acquire property along Shiloh Drive Total Estimated Costs for Future Construction $2,500,000 $4,500,000 $1,500,000 $3,000,000 $16.000,000 4-a,a silo FA-(4 y 1' gt. $saaat ac u Cu) xexgxx• 4 El O li 6665655 -4 ilil V -.13 •,.etre• 1F F^ ib CITY ENGINEERING _G DEPARTMENT� C nv, 113 W. MOUNTAIN STREET FAYETTEVILLE, ARKANSAS (sar) sn-tins /AE NC• two En -tits' I SCALE. A, NON ARKANSAS RESEARCH 4 TECHNOLOGY PARK SITE PLAN Tracking Systems International, LLC Phone: (501) 442-6213 PO BOX 1948 Fayetteville, AB. 72702 6-22-2001 Ms. Stephanie Johnson Community & Business Development Team ARKANSAS DEPARTMENT ECONOMIC DEVELOPMENT SUBJECT: Proposal In-Bound/Out-Bound Call Center Dear Ms. Johnson: Tracking Systems International is scrutinizing Fayetteville as a potential investment site for a new headquarters office. Our plan is to establish a call center office (about) 10,000 square feet) with 200 employees generating $60 -million in sales within a two-year time frame. Base wage is $8.00 per hour with a performance commission that can easily generate a combined wage of $24.00 per hour for the ambitious employee. The marketing strategy for this two year phase-in is as follows: Phase I— first 90 days will cover Northwest Arkansas, Phase II — next 90 days will see sales extending to the Gulf of Mexico; Phase III — next 180 days sales will radiate to both the East and West Coasts; and Phase IV — next 360 days will absorb sales along the entire East and West Coasts all the way north to Canada. Total elapsed time will be 24 months (two years). We believe our new enterprise is best suited for the Arkansas Business Technology Park. Accordingly, local investors have committed to constructing a facility that will accommodate our need for approximately 15,000 -square -feet of operating space. The existence of a fiber optics hub in the Arkansas Business Technology Park is a definite asset to our telecommunications business. Essentially, Tracking Systems International will have (5) subsidiary divisions, which include: 1). Operation: Stop Theft - a personal property tracking system involving the registration of televisions, video cassette recorders, cameras, or any personal property with a serial number. This data can be accessed by L.E.O.'s (Law Enforcement Officials), pawnshops and insurance companies to stop theft of personal property (i.e., burglaries by drug addicts). Serial numbered items submitted to pawnbrokers are first entered into the system to obtain a clearance that the item is actually owned by the seller and available for sale. If the system registers that the item is not owned by the seller, or not for sale, the pawnbroker is required to contact either the police or the owner listed in the central retrieval system. Ms. Stephanie Johnson SUBJECT: Proposal In-Bound/Out-Bound Call Center Page 2 of 2 Pages 2). Cellular Tracking and Recovery - registration of cellular telephones and making ownership information available for passive system retrieval by participating law enforcement agencies nation-wide. 3). Pager Tracking and Recovery - registration of personal pagers and making ownership information available for passive system retrieval by participating law enforcement agencies nation-wide. 4). Automobile Insurance Tracking System — registration of automobile insurance policies into a nation-wide data system that will instantly identify expired insurance policies for participating law enforcement agencies. 5). Pawn Ticket Tracking System — software is provided to participating pawnshops nation-wide. This system will actually track the movement of a criminal as he / she maneuvers from city to city selling stolen goods. It is anticipated that costs associated with establishing Tracking Systems International will include: Computers/Hardware/Software Acquisitions $500,000 Production furnishings/Work Stations/Office Furniture 100,000 Advertising and Marketing (first 90 days) 45.000 GRAND TOTAL $645,000 Tracking Systems International believes that its services, outlined herein, are actually about 20 years overdue in the crime -fighting arena. We are truly excited about the potential for dramatic results in curbing crime(s) — in particular, those associated with drug trafficking. Thank you for the privilege to submit this request for assistance from the Arkansas Department of Economic Development's Advantage Program. Should you have questions, or if I can be of any assistance to you, please do not hesitate to call. Sincere) Gene Gold Owner