West Memphis A&P commits funds to attracting restaurants to city

West Memphis A&P commits funds to attracting restaurants to city

Finding a way to lure more eateries ‘ is at the top of the list,’ says economic development director

news@theeveningtimes.com

West Memphis Economic Development Executive Director Phillip Sorrell promised last week to use the wisdom collected from local growth and development focus groups to improve the city. This week he achieved a first big step. The Advertising and Promotion Commission approved financial incentives to attract new restaurant development along the Interstate 40 corridor. Sorrell planned on sweetening the pot for dining franchises and chains to entice new eateries to build adjacent to hotels along the busy Interstate 40 and 55 interchange.

Last week Sorrell told city council his department has already gleaned results by listening to citizens.

We’ll even look at how we issue permits and make the city more business friendly,” said Sorrell last week. “This is an effort to do a self-assessment and come up with a way forward that we all buy into.”

Sorrell wasted no time putting one early study group conclusion into practice. He sold the sizzle by pulling some big name examples voiced in the study groups to make the point whetting the appetite of commissioners.

“Everybody wants new restaurants like Chick-fil-A and Chili’s,” Sorrell told the A& P.

“We get a lot of requests for healthier options, “said West Memphis Economic Development Project Manager Mallory Darby.

In the meantime, hotel owners offered feedback to the A& P. Commissioners heard that hotels sometimes suffered on customer ratings because of a lack of nearby national dining chain options.

“We are trying to fill those gaps,” said Sorrell. “More varieties in restaurants is at the top of the list in our community.”

The Economic Development department responded and delivered a restaurant recruitment incentive package to the AP for consideration. Darby presented the proposal.

“You had asked about having a tool in place for restaurant recruitment,” said Darby. “We’ve had several kicking around the dirt recently and we just can’t quite get there. We feel like this would keep prospects at the table longer and they’d sign on the dotted line.”

The plan entitled Quick Action Closing aimed at bringing popular brand restaurants to the city by paying certain city-required permit and inspection fees based on a rating scale. ED asked the A& P to pay those costs on select prospects based on a rating scale and pointed out the benefits of increasing tourism tax revenue for the A& P.

“It looks at capital investment and potential revenue; it looks at filling gaps that we have, not just incentivising everybody for anything,” said Darby. “It would take care of permit fees, utility tap fees and deposits. Those costs on new 7,500 square foot construction typically total $17,000. We could take that to the table of a restaurant operator and say we can offset some new construction costs. We have a huge opportunity to capture sales and tax revenue. We propose an A& P funded one million dollars per year for restaurant development.”

The A& P baulked at the six figure proposed budget but opened the door even wider by removing the $100,000 annual cap in favor of considering any well rated new dining opportunity. Commissioners approved the “capital rating” system and green lighted planning and development to proceed with the evaluating restaurant potential and making incentive recommendations to the commission for consideration. A& P would tap its special project fund to pay any incentives it approved.

ED promised to get right to work.

“We have one dangling on the line out there right now,” said Sorrell.

By John Rech