Hot Springs, Arkansas - Hwy 70 East -  Bypass

The seventh meeting of the Scenic Gateway Steering Committee was held on Tuesday, September 24, 2002, at the COC Community Room. Committee members or representatives in attendance were (in alphab. order): Anita Barrett, Cliff Caughman, Jay Chesshir*, Lynn Cole, Tom Lucek*, Peggy Maruthur, Carl McChesney, Kent Myers, Jerry Raetz*, Steve Teague*, Les Warren, Bob Wheeler, & Evan Yother. Not present: Laurence Adkins, Steve Arrison*, Vickie Berni, Mike Bush, David Campbell*, Wyley Elliott*, David French, Carl Hughes, Ted Mullenix, Ken Wheatley*, Gerald Wheeler & Larry Williams*. *Non-voting members.

Minutes from the July 11, August 13 and August 20, 2002 meetings were approved without changes/additions/deletions. The revised SC member list was reviewed re recent changes resulting from Letters of Commitment which were requested of members to allow for individual choice re level of commitment, or not. The SC voted to realign our Committee so that voting members were those who are active and attend all or most meetings or participate but do not choose to have voting status. Jay Chesshir, Jerry Raetz, David Campbell and Tom Lucek moved to the ‘Advisory Capacity’ with non-voting status. Wyley Elliott and Larry Williams moved to the ‘Assist re Specific Needs’ category with non-voting status. Decisions from David French (Fifty for the Future) and Laurence Adkins (G.C. Quorum Court) remain unknown. Randy Cox is no longer on the SC. Following this meeting, Ken Wheatley moved to the ‘Assist’ category. Presently, we have fourteen (14) voting members; six (6) Advisory members; three (3) Assist members…plus, two undecided, for a total of twenty-three (23) committed members and two (2) undecided. We may add one or more members from the Hospitality Industry or other areas, as appropriate. Note: A complete list of SC members, including addresses, phone numbers and e-mail addresses will be prepared and distributed in the near future.

Steve Teague was recently promoted to Assistant to the Director of the AR Highway Commission. Congratulations were extended Steve at this meeting. We truly appreciate Steve, and other Highway Dept. persons and their participation and support re the S/G Steering Committee and our efforts.

Jay Chesshir, President, GCEDC & COC, was our speaker and offered an exciting, upbeat and interactive presentation. He addressed economic development and marketing specific to the Scenic Gateway. Key questions to be answered are: (1) What is the Scenic Gateway? (2) How much is it (i.e., selling prices of property in S/G)? (3) What (property) is available? The answers to questions 2 & 3 are directly tied to the property owners in the 70E gateway and the market/developer interest. Property owners will determine if, and how much of their property, they wish to sell and at what price. The answer to question 1 is slightly more complicated with as many visions as there are people with an interest in the gateway development. Some consensus will be necessary (or, certainly, preferred) in order to target specific market developers. Discussion revolved around these three questions; and, SC members enjoyed a lively, thorough and productive discourse.

The City will produce a GIS Map/Overlay of the 70E gateway area showing property lines, acreage positioning and size, and owners’ names. As soon as possible, a meeting inviting all property owners will be held to explore economic development and marketing of the S/G. Those interested in selling their property will be invited to participate by returning a confidential confirmation questionnaire re acreage parcels and price on each they are interested in selling. This information is vital in efforts to market the gateway to prospective developers and/or buyers. Sellers will then be identified on this Map/Overlay, and their asking price by parcel, for use in marketing. Note: Crucial to this project is obtaining funding for the S/G Steering Committee’s, and others’, efforts to develop and market the S/G.

The SC, with the possible assistance of other entities, will define who we are and the vision for this developing Scenic Gateway. As Jay stated, the 70E corridor is definitely the next concentrated growth area of Garland County; and, much of the land in the gateway is "pristine." Jay commented that "we don’t want things that will harm our environment, because our environment is what we have to market." He also stated, "the COC & GCEDC actively look at types of companies to bring into G.G. and discourage those they do not want." The Steering Committee would hope for a joint effort between the City, County, COC/GCEDC and property owners in moving forward the S/G development. We need to raise funds re marketing, determine our marketing approach, develop the specifics in order to market and develop a professional web page which may be included in the COC’s and City of Hot Springs’ sites. Also, Jay, and possibly others, may present the Scenic Gateway development in meetings w/prospective buyers/developers; including, those requiring travel out of the area to conduct.

Jay gave us the history re the Fiber Park development. In essence, the first three years marketing the Fiber Park did not bring a developer; mainly, because there was no tele-computing intrastructure in place and no work force available. Now, construction on a 40,000 sq. ft. building will start this December. Others will follow. The first is usually the hardest to get.

Target markets will be established re marketing efforts toward economic development on or near 70E. Some aspects to consider are: zoning codes in place and any potential adjustments or changes; environmental impact; demographics of Garland County; out of area tourists vs. local and extended central AR area prospective customers/guests; income levels and needs of guests (especially, our immediate market areas such as Little Rock and surrounding towns near G.C.); and, how each of these considerations affect the type/ level/ quality/ quantity of business entities sought re development in the S/G. For instance: seating capacity and types of entertainment and restaurants that fit our profile; complimentary shops and activities offered are important re the success of this venture; demographics re lodging guests and room occupancy expectations may be a factor in determining hotel/motel/resort developer contacts.

Kent Myers answered the question: ‘What is the Scenic Gateway?" He stated we need to come to terms with: Scenic Gateway’s major draw will be L.R. and H.S. citizens…Will be a new tourism development which we’ll seek to expand…Located close to downtown and the Hot Springs Convention Center & Arena…We can expect the 70E interchange and four lane highway within 4-5 years…Land in S/G is reasonably priced today, and there is a lot of land available…All utilities are available in the S/G area…Very esthetically-appealing area with hills, trees and creeks…and Jay added: Incentives are available.

Jay stated that potential buyers want answers to key questions: What? Where? How Much? Developers deal with: What Is It? How Much Is It? and What Are You Going To Give Us?

Cliff Caughman said his property varies as to usability – productive vs. non-productive land. Also, the price varies by parcels of his land.

Jay remarked the price is always negotiable; but, you need a starting point. Some buyers want a per foot basis – not per acre. H.S./G.C. land is fairly cheap vs. other parts of the U.S. Some prospects want the land donated! He assumes land near Magic Springs would be more expensive…probably can designate certain parcels at specific prices.

Evan Yother just bought another piece of property in area. He knows of six pieces of property now available. When asked pricing, he stated: $1.25 per foot…$60,000 per acre.

Jay said the Platt Map can give information to prospects re frontage on highway, water and sewer, etc. Kent said a GIS mapping capability is available out to the county-creek. Jay added water and sewer is out to Cabinet Door Shop. Kent will have this Map available at our next SC meeting, Oct. 24^th.

Jay recommends we ask all property owners to attend a meeting re marketing the S/G, whether they are interested or not in selling their land. Tell them what we need from them and provide a ‘Confidential’ response sheet that might be returned to Jay at the COC/GCEDC offices. All information and responses will be kept confidential and used only re prospects. Lynn suggested Jay, and whomever he wants to bring, actually present the marketing and econ. development of the S/G to property owners as he did at this meeting. Also Q&A. She commented Jay has the high level of expertise that will possibly give a net result of more p/o’s becoming interested in exploring selling their land. It was agreed we need to approach this through a meeting rather than a mail-out. Cliff stated he knows of "ten-twelve owners who would be happy to sell."

Lynn inquired about a time frame following producing the GIS Map and this p/o meeting before marketing the S/G could actually begin? Jay said it comes down to ‘MONEY!’ And, apparently, money is thin right now. He may be able to request additional funding re the SG. Evan asked if incentives were available? Jay responded that incentives re tourism-related projects are handled same as with industries that are targeted re coming to G.C.

He explained the various incentives. There are back-end or front-end incentive loads. Magic Springs project was won through incentives available with up-front incentives. We now can use these for any other tourism project in the State. A developer in an approved tourism project recoups 25% of capital investments. The Peabody came to L.R. on same legislation. Mr. Hammans got a $35 M re Embassy Suites in H.S. The other incentives are H.S. and area. The City is the number one incentive because of quality of life. Certain communities in AR offer tax rebates, free land, free utility expansion. But we do not do so. With the Embassy Suites, the City did not give him anything to come and build here. The State incentive program is the only thing he got. The State legislation states what can or can’t be built. For instance, there must be a minimum of 12,000 sq. ft. of meeting space.

Lynn, again, addressed the COC/GCEDC Web site marketing the S/G and what we need to do re preparation and materials. Jay said Fiber Park has a CD. We could have specific marketing materials produced for the S/G and put on one specific piece (CD). Jay would incorporate it as part of GCEDC, plus the City and A&P could add it to their Web sites.

Kent stated the S/G SC might want to consider being incorporated or establish a more formal group, out of the overall SC, which would come to Jay re marketing and development. Jay said that might be good. But, he hoped we realized this is not a one-year process; we are looking at three to four years possibly to sell a developer. He then gave an example using the 1988 "New

Beginnings" program which raised $1.1M over four years re economic development. At the end of four years, according to Jay, there were no new companies to show for their efforts. But it laid the ground work from which ‘we’ / GCEDC actually succeeded in getting a company here: Delta Plastics, Inc. which came in (1994 / ‘95). The actual results from the "New Beginnings" program and following efforts netted: $1.2B by year 2000 in retail sales…25 new factories…$49M in new payroll.

Jay stated the Scenic Gateway Steering Committee needs a long-range commitment to this, or we are wasting everyone’s time. Kent commented that it is a long process; but, in the meantime, this group can promote by telling everyone what’s happening in the S/G on a regular basis. For instance, CMS School growth, the new expressway, the ground-breaking ceremony, new housing community. COC will work with us to promote the gateway.

Jay commented that we are fortunate to have an anchor…Magic Springs is already there! We have something that other areas don’t have. Developers will take a ‘wait and see’ approach to make sure this community (i.e., the pp living here and the visitors) are able to support a Scenic Gateway. Magic Springs has opened and closed two times in the past. Developers get nervous over these events and want some assurance of future presence.

Red Lobster was a three-year effort to secure and was our first national restaurant chain. They normally require a 100,000 population or being on an interstate. G.C. has 72,000 and 150,000 in our 30 mile market area. Red Lobster took a chance, and it became one of their highest growth restaurants in the Mid-South. H.S./ G.C. just doesn’t fit most demographics. Little Rock has 400,000+ pp in their 30-mile radius.

Lynn remarked that the S/G is the new growth area for G.C. and developers will be confident re H.S. overall success stories (such as Red Lobster)…that other growth has been occurring in G.C. Jay agreed, from 1988 forward, and now the Embassy Suites. Kent asked about Jay’s take on impact of completion of the MLK Expressway to 70E? Jay feels it will open up 70E, and that has not been there before. Also: water & sewer, traffic flow, recognition of pristine land in 70E as now the next big growth area of G.C….that the S/G will be a big part of this growth.

Cliff commented about the Convention Center being a twelve-month operation while Magic Springs is seasonal. Also, a motel needs 12-month customer base. Embassy Suite will enhance the value of the S/G property and (development need) not necessarily be in entertainment field. He felt an Olive Garden would be great, and a Holiday Inn Express.

Jay said Magic Springs is a 4-month anchor…and what can we accessorize MS with in the S/G? We’ll soon have a three lane highway all the way to south of Benton; and, there is not much land available between Benton and Little Rock…So, 70E is a natural for development, and it will come. Tourism season used to be from day Oaklawn opened until it closed and then summer til day after Labor Day. Our group business destinations in G.C. made an effort to expand our tourism season and they succeeded.

Cliff said a ‘Cornerstone’ would be great in S/G. Jay said it (meaning development) will happen with our S/G SC group working on this…just as the Park Avenue area has w/Peggy and others working on it. He asked us to look at an the S/G as an entertainment destination…that it would be nice to have a 12-month destination (in S/G). He feels an Olive Garden would want to locate near other good restaurants, and it is less likely people will drive to S/G just for an Olive Garden.

Peggy Maruthur suggested if we make it convenient…build and they would come. She’d like to have an Olive Garden franchise. Les Warren mentioned that people drive year round to Benton for Tinsletown. He’d like to see a Tinseltown here with an Olive Garden. Jay remarked that the former corporate counsel for Tinseltown lives in G.C.

Jay encouraged us to look at WHAT IS NOT HERE? The S/G SC needs to address this. So what if we don’t fit the demographics? We have a proven track record for those who did move in their business. Bob Wheeler stated, "It is true. More things that locate in the area will bring more things to same area." Jay asked us why Red Lobster located across from the H.S. Mall? They could have chosen cheaper land. Because, TRAFFIC. ACTION. Creating these will create more. The formula works for them. We need to be looking at things we don’t have here, and they are our targets for the S/G. Once we piece all this together, they will come to us. We won’t need to go to them. We need to spend time, money and effort to develop our marketing approach and target businesses not here. It will snowball from there. 70W has as much heavy traffic as 7S, and that is why businesses are going there (70W). 70E will do the same; it will happen and snowball once the interchange is in.

Les wondered what are the possibilities of moving Mid-America Science Museum to S/G with all the changes to happen on 70E? Jay and Bob both responded that will probably not happen. But, Jay said we could look at doing something like it (MASM) on 70E. The Brass Pro Shop (near Branson) is a huge draw and form of entertainment. Branson is now focusing on filling in the gaps. A one-hit wonder is not enough. We need to develop more and be diversified. We mentioned that Branson officials stated they were envious of us because we are diversified.

Kent stated Branson (officials) told us not to tear down any of the Bath Houses. Bob responded that we have got to change the Bath House Row situation/condition. We can’t afford not to! Kent said Ed Hart stated the Bath Houses will help us out. Bob said we just need to do it…go to Washington if that’s what it takes. Lynn reminded everyone that Roger Giddings will be our speaker in October, and he’ll discuss the Bath Houses. We need to have our questions and comments ready. Kent said we should all go to political debates and ask about specific plans for the next two years to get the Bath Houses on the agenda for repairs, renovations and use. Jay said, "We are working on it" and the National Park. They will target one or two at a time and are getting funding. Peggy mentioned it was tied to land-slide litigation. She feels we need to get a commitment re future of downtown and Bath House Row. Kent said we are waiting for the National Park Director to come to H.S. re the rock slide litigation (from five years ago!) He suggested the H.S. Board of Directors might need to go to D.C. Bob said not just the Board but anyone should go (who has interest)! Lynn commented about Ed Hart’s feelings re the National Park and BHR. Kent stated the Gulpha Gorge ties into the S/G, and we should talk about that (w/Roger). Evan suggested bike lanes in the Gulpha Gorge to the S/G. Kent said a part of plans exist to do this.

Peggy mentioned an article in the Sentinel-Record re the draw of ex-President Clinton, and the money it has generated…and, we have a house in which he lived near the Gorge. Jay suggested tie that into the S/G…Tie S/G to downtown, to the lake, to Gulpha Gorge. He was glad to hear us say we support H.S. and want to tie into what we have. Everyone seemed to agree that downtown and Bath House Row must become a very high priority.

Jay recommended that as soon as 70E is being marketed, then immediately start talking about 70W. It all works together and all will help the S/G. He reminded us what H.S. went thru years

ago. They focused on one thing. Finally, we realized we can be it all if we work together. Entertainment is part of it all and helps other businesses and places. Bob reminded us about the challenge to pp of H.S. to work together and go for the addition to the Civic Center. They did, and it is so much better. He said the Scenic Gateway is the same thing!

Jay reminded us "when talk was to tear down several historic buildings in downtown to put in parking lots! Wow! Now we have an attractive parking deck that fits downtown. Downtown is important but so are all areas of G.C." He feels it is gratifying to see pp working together for success (for G.C.).

We discussed the ground breaking ceremony the next day re Embassy Suites…Mr. Hammons would be there (he is 80+). The work now being done on HSCC and starting this Hotel is great!

Carl McChesney asked if we should have another meeting re the Overlay/ Map or wait til November. Jay said start putting it together now as some in S/G area may not have information. Les said he can help identify any missing information. We will have the Map at next meeting.

Carl gave report on f.u. meeting w/AR Hwy. members, and they agreed to everything we want except the guard rail. Lynn asked Steve Teague about timing for our ground-breaking ceremony, and he said that bids will go out October 23^rd. It will probably be one month to six weeks after that re possible start on interchange (i.e., late Nov. or early Dec.) but could be delayed due to weather. Lynn suggested we form a Ground-Breaking Ceremony Action Committee. The following people agreed to serve: Peggy Maruthur, Anita Barrett, Evan Yother, Carl McChesney, Bob Wheeler, Lynn Cole. Lynn will call Ted Mullenix to see if he would like to be on as well. The meeting was scheduled for Friday, Oct. 4^th at KOA for breakfast. Everyone agreed we want a BIG!!!! CELEBRATION….Lynn stated we will invite the Governor and other dignitaries both State and local, plus line up entertainment. Also, all media statewide will be invited (i.e., television, incld. AETN, AR D-G, S-R, etc.). We will choose the site re the ground breaking ceremony, insuring a beautiful backdrop/landscaping.

We also discussed holiday lights in the S/G for 2003. Lynn recommended we start in January on this project as it will be an enormous and broad task. Anita expressed her desire to have area churches adopt parts of the Christmas Story and enact them in her KOA Kampground as a drive-through display. We also want lights all along the gateway up to HSCC.

Bike lanes vs. trails in the S/G were then discussed. We will ask Jean Wallace to address this issue when she speaks to us in January.

We discussed combining our Nov. & Dec. meetings and maybe tie into the ground-breaking ceremony. Too many unknowns at moment to firm this up.

We adjourned about 12:50 p.m.

Respectfully submitted by:

Lynn Cole, Coordinator/Facilitator