Huge Investment To Attract Communist Chinese Company In Jeopardy

Governor Asa Hutchinson’s head of economic development, Mike Preston, says don’t worry about the four-year delay in locating a paper mill in Arkadelphia. But, Clark county residents are worried about their $10 million investment to attract Sun Paper.  The parent company of Sun Paper is Shandong Sun Paper Industry which means Sun Paper is a communist Chinese company.

The massive project has not been officially canceled but Stephen Bell, CEO of the Arkadelphia Regional Economic Development Alliance, told Arkansas Business “I wouldn’t say it was ominous, but it’s not good.”  The Arkadelphia alliance has taken steps to market the 1,000-acre site and to signal the site is ready for development.

At stake for the Arkadelphia alliance is $10 million put up by the people of Clark County. While the money is said to be “not lost,” part of the investment is tied up in the purchase of 1,000 acres, which may be worth much less now than when purchased, and part of the money is still available for a railroad spur.

The Arkadelphia Alliance informed Sun Paper months ago the Alliance needed to look elsewhere to market the land. Sun Paper asked the alliance to not take any steps to sell until after January 2020.  That time has passed.

“When you place your bets, you take your chances,” the saying goes.  Unfortunately, the Arkadelphia alliance and the state of Arkansas are playing with taxpayer money.

We will likely see more of this in the coming years because the Governor talked voters into authorizing cities and counties to go into debt for economic development projects.

Will Clark County taxpayers be able to get their investment back? Will the communist Chinese company eventually move forward on the project?  The only sure winner is the house.  In economic development that includes real estate agents and lawyers. 

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Sun Paper is not listed as a client of Governor Hutchinson’s law firm but other communist Chinese companies that have received incentives from Arkansas taxpayers are on his law firm’s list, such as Ty Garments and Risever.

Asa Hutchinson III, the Governor’s son has traveled with the Governor on Chinese trade missions on behalf of the Hutchinson family law firm.  Asa III is said to have traveled on his own dime but does that make it any better? What signal does it send when the Governor’s son is present working on behalf of the Governor’s law firm to represent Chinese companies? What signal does it send to the communist Chinese officials on how business is done in Arkansas?