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State working to help Cargill rebuild in Booneville Tuesday, Apr 8, 2008 By Rob Moritz Arkansas News Bureau LITTLE ROCK - The state has offered a package of economic incentives to get Cargill to rebuild its burned-out beef processing operation in Booneville, Gov. Mike Beebe said Monday. At least one other state, Missouri, has already indicated it plans to offer incentives to lure the plant away, Beebe said. "We want them to stay there, we want them to stay in Arkansas," the governor said. The plant was destroyed in a fire March 23, idling 800 workers. Beebe declined to discuss specifics of the incentive package, for fear of giving Missouri and possibly other states a competitive advantages in negotiations. He said the Arkansas Economic Development Commission made its proposal to Cargill officials Friday. "We're trying to be competitive with other states but still do it in a fair way that measures the number of jobs and the value of those jobs with (the state's) investment," Beebe said. "We don't want to get too heavy in what we offer, but we don't want to miss the boat either." The incentives would be through community development block grant funds, a spokesman for the governor said later. Beebe made his comments after a speech to the Little Rock Political Animals Club lunch at the Governor's Mansion. During his speech, the governor said Arkansas' economic incentives were tied with incentives being offered by the city of Booneville and Logan County. Booneville Mayor Joey Wilkins said Monday the local incentives being offered add up to nearly $1 million. They include 35 acres of land not far from the plant's current location, plus all any roads needed to access the property. Also, the city has offered Cargill free water service for a year. Wilkins said the water alone would save the company at least $200,000. Wilkins said there was a good chance the state and local incentive package would keep the Cargill Meat Solutions plant in Booneville. "When I first saw the fire, I thought there was a zero percent chance they'd stay," he said. "Now, I think it's about 50-50." Wilkins said he did not know the details of the state's portion of the incentive package, but said losing the plant would be devastating. "It's pretty important, they have a $20 million a year payroll," he said, adding that the plant provided hundreds of workers with jobs that paid at least $10 an hour. The city's finances also could take a heavy hit if the plant is not rebuilt, Wilkins said. The new $17 million Boonville Community Hospital is scheduled to open in June, paid for with a 1-cent sales tax. Another 1-cent sales tax is being used to pay for a variety of Booneville city services, and the county has a 1-cent sales tax it is using to pay for emergency medical services, he said. Beebe said some economic factors are working against the plant staying, including the national economic slow down and the desire by many companies to downsize. A positive, he said, is that a large freezer facility at the plant was not damaged and can still be used. Beebe also said Cargill officials have praised workers at the plant for "their quality and work ethic." |
