Arkansas Report

Resurgence expected in 2006

By Chip Taulbee

Construction activity in Arkansas remains strong in early 2006, albeit with mixed signs, as late 2005's hurricane-related slowdown gives way to a resurging economy.

A recent economic outlook from the University of Arkansas at Little Rock's Institute for Economic Advancement indicated a "strengthening in Arkansas Gross State Product relative to what would have happened in the absence of the hurricanes."

The institute also forecasted an economy creating jobs but not at a pace fast enough to absorb a growing labor force.

"Thereafter, job growth (in the second half of the year) will outpace labor force growth and unemployment rates will decline," the institute forecasted.

Other good news includes increases in personal income through 2008, though rising interest rates and a lack of local advantages will limit gains compared to the rest of the region and the nation, the institute said.

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Similarly, the St. Louis branch of the Federal Reserve reported in its most recent Beige Book report a modestly expanding economy in Arkansas.

Positive fed reports came from south central Arkansas, where construction remains strong, and in southwest Arkansas, which reported new industrial projects. Conversely, construction was down in Little Rock.

A list of the largest general construction projects in Arkansas topped $1 billion for a fourth consecutive year, according to Arkansas Business.

The publication's 2006 survey of active contracts valued at $5 million or more included 121 jobs totaling more than $1.7 billion.

Many of the largest projects were in the state's bustling northwest region.

The Church at Pinnacle Hills, Springdale, Ark. An arm of Arkansas' largest church is building a new 187,600-sq.-ft. church to accommodate its fast growing congregation. The Church at Pinnacle Hills in Rogers and its parent church, First Baptist Church of Springdale, have a combined 15,000 members.

Originally, the contract for Pinnacle Hills' new church was awarded to Baldwin & Shell Construction Co. of Little Rock, but as project costs outgrew their budget the church decided to rebid the job.

The original design called for a structural steel frame with a metal stud and stone exterior.

Instead, Precept Builders Inc. of Dallas proposed to make most of the exterior skin a textured tilt-up concrete wall system eliminating exterior load bearing steel and architectural skin.

Precept was awarded the new $25 million contract shortly after site work begun. The facility calls for a 2,400-seat sanctuary with room to add another 1,200 seats in future phases; a flex space used mostly for large meetings, called a Gatheria, with room for 650; a 4,000-sq.-ft. bookstore and café; and a two-story education wing with 19 classrooms.

But perhaps the most visible feature will be a cluster of outdoor crosses, the largest one measuring 165-ft. tall, to complement an exterior baptistery and gathering area.

Work began on the project in June 2005 and is expected to be finished in October.

Tyson Foods Discovery Center expansion, Springdale, Ark. Meat processor Tyson Foods Inc. is adding a new four-story office tower to its previously announced research, development and training complex at its Springdale, Ark., headquarters.

The 174,000-sq.-ft. building will be part of Tyson's Discovery Center, a project that has grown to include 285,000 sq. ft. of space and cost $85-$95 million, up from the $40-$50 million originally proposed, the company said.

"Our company's long-range plan calls for the development of additional office space to bring more of our corporate staff to World Headquarters and provide room for future growth," John Tyson, chairman and CEO of Tyson, said in a press release. "After analyzing the projected cost of the Discovery Center, we determined it makes economic sense to build the additional office space now, rather than later."

The newest building will have room for 500 employees, with the first floor dedicated to training facilities and additional space used for leadership, management and job-functional training classes.

Crossland Construction Co. of Columbus, Kan., working out of its Rogers, Ark., office, began work on the new building in February 2005 and is expected to finish in December.

Pinnacle Hills Promenade, Rogers, Ark. One of Arkansas' largest retail construction projects in the works is the 980,000-sq.-ft. Pinnacle Hills Promenade in Rogers. The open-air shopping center is sited on 106 acres and will include 275,000 sq. ft. of specialty shops and two large department stores, Dillard's and J.C. Penney's, along with a 12-screen movie theater.

There will also be space for six restaurants and office space.

Vratsinas Construction Co. of Little Rock, Ark., began work on the $42 million project in March 2005 and is expected to be finished this fall.

The two large anchor stores are part of separate contracts. CDI Contractors of Little Rock is the general contractor for the 155,000-sq.-ft., $15 million Dillard's and EMJ Corp. of Chattanooga, Tenn., will build the 99,000-sq.-ft., $5.1 million J.C. Penney.

Wastewater treatment plant, Fayetteville, Ark. A city-wide wastewater system improvement project will net Fayetteville, Ark., a new treatment plant in addition to expansions and improvements at other facilities.

The new $60 million plant will have a capacity of 10 million gallons per day and complement the city's existing Paul R. Noland Wastewater Treatment Plant, whose capacity is 12.5 MGD.

The project's contractor, Brasfield & Gorrie LLC of Birmingham, Ala., began work on the new plant in November and is expected to finish the job in May 2008, project manager Tom Marcum said.

The complex will house four biological units, four clarifiers, inlet facilities, grease separation, waste sludge holding tanks, final clarifiers, ultraviolet disinfection, post aeration and an odor control system.

The facility will use 30,000 cu. yds. of concrete.

Marcum said he has not yet encountered any unique challenges to the project, which is a relatively small job for a treatment plant.

Arkansas State University Residence Hall Community, Jonesboro, Ark. A 232,000-sq.-ft., six-building residence hall project at Arkansas' third largest university will replace the school's decades-old student housing.

"They're replacing a pretty institutional kind of dorm," said project manager Dave Dancer of Little Rock's Baldwin & Shell Construction Co. "It looks a lot nicer and doesn't feel like you're staying in a cell block."

Baldwin & Shell, the project's general contractor, began work on the $24 million job in January 2005 and is expected to finish this August.

Sited on a 16-acre wooded lot, the project provides a new commons building and five new residence halls. The three-story halls will house 840 suite-style bedrooms. Each suite will have a private bath, living area and a kitchenette.

Jonesboro's Brackett-Krennerich Architects and Boka Powell LLC of Dallas designed the wood-framed structures, which have a Hardy siding.

Dancer said the most challenging part of the project has been juggling work at the six buildings.

"The most challenging thing about a multi-building apartment complex is the fact that it's multi-building," Dancer said. "You don't just pour a slab, you pour five slabs. So you don't have one schedule, you have five schedules."

Army Aviation Support Facility, North Little Rock, Ark. One of the country's largest state-operated military training sites is adding yet another facility.

On the 33,000-acre Camp Joseph T. Robinson, headquarters for the Arkansas National Guard, Nabholz Construction Co. of Conway, Ark., is building a new $32 million flight operations center for the airfield.

The facility consists of one main building and two storage buildings, according to Lt. Chris Heathscott, state public affairs officer for the Arkansas National Guard.

The first floor of the two-story facility will be a helicopter maintenance area and the second floor allocated for administrative offices.

The 157,000-sq.-ft. building will use metal and masonry blocks on the exterior. Work began in May 2005 and is scheduled for completion in February 2007.

U.S. 167, North Little Rock and Sherwood, Ark. A $42.3 million expansion of U.S. Hwy. 167 in North Little Rock and Sherwood, Ark., should unclog traffic for thousands of central Arkansas commuters. The project entails a widening of 5.2 mi. of highway from two lanes to three, repaving of the existing roads and adding one-way frontage roads.

The job also includes work on three bridge structures: tearing down and replacing the Kiehl Avenue overpass, adding a turnaround at Brookswood Road and replacing a pair of bridges at Woodruff Creek.

Weaver-Bailey Contractors of El Paso, Ark., the project's general contractor, began work on the project in November and is expected to finish by March 2008.

"I think it has 70,000 cars a day, and it was built for probably 45,000 to 50,000," Weaver-Bailey Vice President Don Weaver said. "Two lanes will just not handle that much traffic."

Weaver-Bailey will remove and crush all of the existing concrete pavement and reuse it for the new road.

"In the highway business, we're the largest recyclers in the United States," Weaver said. "We try to reuse everything, whether it's asphalt or concrete."

Van Buren High School, Van Buren, Ark. Though not growing as fast as some other cities along the northwest Arkansas corridor, Van Buren is adding 50-100 students to its high school each year, according to Lonnie Myers assistant superintendent of the Van Buren School District. And, Myers said, that's enough to merit a 175,000-sq.-ft. expansion at the school.

Crossland Construction Co. of Columbus, Kan., began work on the $26.6 million project in August.

The first phase, which will be complete in January 2007, includes 75,000 sq. ft. of classroom space; library, administrative and counseling space; a cafeteria and kitchen with an adjacent commons area; and a new, 2,200-seat gymnasium.

The second phase, to begin after the first is complete, involves demolishing parts of the existing high school, renovating others, building a new fine arts auditorium and adding more office and classroom space.

Project manager Ken Woodson said the steel and concrete structure will be complete by July 2008.

Myers said the high school, which now houses between 1,160 and 1,200 students, will be equipped for 1,500 after the upgrades.