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Beebe to replace economic development chief
Tuesday, Jan 30, 2007

By Jason Wiest
Arkansas News Bureau

LITTLE ROCK - Gov. Mike Beebe said Monday he would not retain the head of the state economic development office.

Beebe did not name a replacement for Larry Walther as director of the Arkansas Department of Economic Development.

"Walther is a good man that we've asked to continue to assist in some capacity, particularly with those ongoing projects that he's been very helpful in," Beebe said after speaking at the Northwest Arkansas Leadership Luncheon.

The state is reportedly in contention for an auto manufacturing plant and a steel mill.

"We're not ready to say anything specific (about Walther's future with the agency), and to some extent its kind of his choice," Beebe said.

Walther did not return a call to his office seeking comment but issued a statement through ADED spokesman Mitch Chandler.

"It has been a true privilege to serve my state, and I will cherish these wonderful experiences as I seek my next professional challenge," Walther was quoted as saying.

Former Gov. Mike Huckabee appointed Walther in 2003.

At the luncheon, Beebe said he supports efforts to develop biofuels in the state, and mentioned his budget proposals and his campaign promise to phase out the sales tax on groceries, which he acknowledged has opposition.

"It is a commitment I have made," Beebe said. "I do try to keep my commitments. You better hope so because I love Northwest Arkansas."

The governor praised the region's economic success and its business community.

"You represent an economic engine that the whole world would love to have in their backyard," he said.

"The only thing that can stop this economic engine in Northwest Arkansas is if it implodes from a lack of complete resources in infrastructure," he said.

He did not outline any specific plans for funding road needs in Northwest Arkansas, saying only regarding highway funding that "the bulk of the money needs to follow the cars."

The Northwest Arkansas Council is calling for $100 million to $150 million of the state's expected $843 million surplus to be allocated for regional infrastructure projects, Mike Malone, the organization's executive director, said Monday.

A number of Northwest Arkansas highway projects along with regional wastewater systems need funding, Malone said.

"We'd love the opportunity to be able to match some local funds with some state infrastructure funding," he said.













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