Arkansas Report

Manufacturing expansions send state on path to recovery

By George Waldon

Construction activity in Arkansas remained healthy in mid-year 2005, and data gathered by the St. Louis, Mo., branch of the Federal Reserve indicates the state's economy is on track for more.

The continued upward trend coincided with improvements in the state's overall economy.

The state's manufacturing base is in full-scale rebound, although job gains and capacity additions are expected to be limited.

"Construction activity is set to outperform the state in northeast Arkansas, with several prominent investments and capacity additions in manufacturing and retail centers," the Fed noted in its Arkansas Economic Outlook.

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The northeast region is home to two of the state's largest construction projects: the Hino Motors plant in Marion and the Mall at Turtle Creek in Jonesboro.

However, the two strongest regional markets for construction continue to be northwest and central Arkansas (Little Rock). The northwest market is dominated by Benton and Washington counties, with the heart of activity in the municipal corridor stretching south from Bentonville, Rogers, Springdale to Fayetteville.

Overall, the region is home to four of the largest construction projects in Arkansas: Tyson Food Research and Development expansion in Springdale, the Lake Fort Smith dam/reservoir enlargement, the new Springdale High School & Middle School complex and Beaver Water District treatment plant in Lowell.

Bob Shell, president of Baldwin & Shell Construction Co. in Little Rock, said the Arkansas construction market is holding firm. Shell, whose general contracting firm works exclusively in the state, added that expectations for a profitable flow of projects in 2005 are playing out.

"The architects are busy and have a good workload," he said. "The market is in good shape for the next 12 months. Office and retail construction are two of the hottest segments."

A list of the largest general construction projects in Arkansas topped $1 billion for a third consecutive year, according to Arkansas Business. The publication's 2005 survey of active contracts valued at $5 million or more included 100 jobs totaling more than $1.2 billion.

Following are brief summaries of the state's largest projects currently under construction.

Hino Motors Plant, Marion. Construction of Hino Motors' 387,000-sq.-ft. pre-engineered steel building encountered some weather delays after groundbreaking ceremonies in July 2004. Completion of the Hino Manufacturing USA plant is targeted for October.

The overall value of the project is estimated at $160 million, while actual plant construction costs are about $24 million.

Construction of a 20,000-sq.-ft. press building is covered under a separate contract. Other phases are planned for the 160-acre site in Marion's Railport Industrial Park.

Full production of Toyota parts is expected to begin by late summer or early fall 2006, with employment of 280.

Lockwood Greene of Spartanburg, S.C. is the construction manager on this industrial job.

Tyson Foods Discovery Center, Springdale. Site work on the multi-building Discovery Center project began at the Tyson Foods Inc. corporate headquarters in February.

Two months later, the company announced the addition of a four-story, 174,000-sq.-ft. office tower, pushing the overall investment to $85 million.

"The project is due for completion in early 2007," said Ron Reich, senior managing engineer with Tyson Foods.

The office building, which will house 500, will be completed by late summer or early fall of 2006. Crossland Construction Co. of Columbus, Kan., is the general contractor.

The Discovery Center includes a 48,000-sq.-ft. USDA inspected pilot plant, a 63,000-sq.-ft. building that will house 18 test kitchens and office space, and 650 new parking spaces.

Mississipppi River Bridge, U.S. Highway 82 in Chicot County. First phase work on the longest cable-stayed bridge in the continental United States is moving toward completion in March.

A joint venture of Massman >> Construction Co. of Kansas City, Mo., and Traylor Brothers Inc. of Evansville, Ind., was awarded the $110.8 million contract in July 2001. The first phase includes construction of the superstructure and the bridge's roadway decking.

The Arkansas portion of the contract is $55.4 million. A separate contract for the Arkansas bridge approaches (estimated at $48 million) will be out for bid in August. A joint venture of Hill Bros. Construction Co. of Falkner, Miss., and Jensen Construction Co. of Des Moines, Iowa, began work in April on an $85.8 million contract to build the Mississippi bridge approaches.

The 13,763-ft. long, four-lane bridge, linking Chicot County, Ark., and Washington County, Miss., should be open to traffic by April 2008. A final contract will be awarded to dismantle the old bridge, located a half-mile upstream.

Dam Reservoir Enlargement, Lake Fort Smith/Shepherd Springs, Crawford County. Tripling the capacity of Fort Smith's main source of water began in August 2002.

Pete Temple, project manager for Granite Construction Co. of Watsonville, Calif., said that substantial completion is scheduled for July 2006. The company is overseeing construction of a new earthen dam, new dam embankments and new principal and auxiliary spillways.

The $53 million contract, the second and final phase of the expansion, will merge Lake Fort Smith and Shepherd Springs into one 84,000-acre reservoir.

Building the 195-ft.-tall dam in the Ozark Mountains is requiring 5.3 million cu. yds. of rock excavation, more than 3 million cu. yds. of sandstone fill, 1.9 million cu. yds. of waste fill, more than 1.1 million cu. yds. of common excavation, 50,000 cu. yds. of structural concrete and 22,000 cu. yds. of roller compacted concrete.

Springdale High School & Middle School, Springdale. Construction of the Springdale High School & Middle School complex is nearing completion. Crossland Construction Co., Columbus, Kan., began work on the $49.3 million contract in August 2003.

Kent Woodson, project manager for Crossland, said work on the punch-list items began at the end of May. The buildings feature structural steel framing and brick exterior with an exterior insulated facie system.

The 385,000-sq.-ft. high school follows a Jeffersonian-style design, with classroom wings adjoined by enclosed hallways and a two-story rotunda. The 126,209-sq.-ft. middle school has four classroom wings totaling 15,000 sq. ft. each.

Supporting gymnasiums, auditoriums and athletic training facilities are included in the new campus.

Richard Sheppard Arnold U.S. Courthouse, Little Rock. Construction of a 179,000-sq.-ft. addition to the U.S. District Courthouse in Little Rock should be completed in May.

Site work on the $49.2 million project, named in honor of former federal judge Richard Sheppard Arnold, began in March 2000. Caddell Construction Co. Inc. of Montgomery, Ala., is the general contractor.

"It's a challenging project just because it's in the middle of downtown, and there's not a lot of laydown area, which required just-in-time delivery," said Terry Willis, marketing director for Caddell Construction.

The five-story annex, featuring a combination granite and limestone exterior, will house 12 courtrooms/judicial chambers and a 52-slot restricted access parking garage beneath.

The new structure will join the east side of the existing courthouse with three interior walkways on the second, third and fourth floors. A five-story atrium entrance will join old and new.

The Mall at Turtle Creek, Jonesboro. Work on The Mall at Turtle Creek, an 800,000-sq.-ft. retailing center, began in August.

Hoar Construction Co. of Birmingham, Ala., is working on a $35 million contract to prepare the 73-acre site and build the 325,000-sq.-ft. mall and parking lot. The brick and masonary structure, housing the inline tenants and food court, features a clerestory roof.

Separate contracts cover construction work for six anchor retailers: Target, Penney's, Dillard's, Barnes & Noble, Circuit City and Bed Bath & Beyond.

Mike Lanier, project manager for Hoar Construction, said one of the early tasks was re-channeling the creek during wet weather. Lanier added that work on the contract should wrap up this fall.

Grand Prairie Pumping Station, DeValls Bluff. The first phase of an estimated $300 million irrigation project in east Arkansas began in April. Granite Construction Co. of Watsonville, Calif., was issued the notice to proceed on its $34.9 million contract, although flooding on the White River made site conditions unworkable.

Overseen by the U.S. Army Corps of Engineers, the project encompasses a six-unit pumping station to draw water from the White River at the rate of 1,640 cu. ft. per second.

Scheduled for completion in July 2007, the project will provide water for agriculture use as a substitute for falling groundwater sources. Future phases will extend into the Grand Prairie farmland region.

Mount Magazine State Park Lodge & Cabins, Logan County. Construction of the new lodge and cabin complex atop the state's tallest mountain is running about two months ahead of schedule.

CDI Contractors of Little Rock began work on the $32.6 million contract in February 2004. Bill Clark, CDI president, said work should be finished by year's end.

Three connected buildings totaling 126,177 sq. ft. comprise the Mount Magazine Lodge. The trio includes a 125-seat restaurant/conference/meeting facility, a registration/guest services facility with a two-story fireplace and a 60-room guest/swimming pool facility.

The project includes 13 full-service cabins that emulate the rustic architectural style made popular in the 1930s. The single-story frame structures are built on native stone foundations with wood-clad exteriors and exposed wood beams.

The structures are largely steel frame with large timbers and stone accent work.

Beaver Water District treatment plant expansion, Lowell. Work began in June 2003 to expand the Beaver Water District's treatment facility near Lowell. MW Builders of Texas Inc. of Temple, Texas, was awarded the $27 million contract, which will increase capacity by nearly 70 percent.

John Todt, project manager for MW Builders, said the job should be completed in July.

About 22,000 cu. yds. of concrete and 2,300 tons of reinforcing steel are used in the work. Three of the largest structures are a sedimentation basin, filter basin and chemical treatment area.

The expansion will boost by 40 million gallons the treatment capacity for water piped in from Beaver Lake.

The construction includes a new pump station, well storage structure and meter vault, which will serve as a starting point for a future pipeline dedicated to Bentonville.

Route 412, Greene County. A $21 million project on Route 412 from Hwy. 141 to Paragould in Greene County is being built by McGeorge Construction Co. Inc. of Sweet Home, Ark.

The asphalt project requires grading, minor drainage structures, an aggregate base course, binder and surface courses.

A precast box culvert will also be constructed during the project. McGeorge began work at the site in early 2004.

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