Paragould utility works to meet growth demands.

WHILE TREMENDOUS growth has been good news for the Paragould economy, its local utility is acting quickly to cope with the unexpected rise in demand for services.

Larry Watson, manager of Paragould City Light & Water, is "feeling the crunch" of increased demands brought about by new major industries and increased residential development.

"If we stay still very long, we will have a problem," Watson says. "We want to stay ahead of it."

A committee comprised of Paragould's business leaders is scheduled to meet after the first of the year to look at where the city is expected to grow, how areas are zoned and how Paragould can pay for needed expansions.

Watson says infrastructure improvements might be financed through increased utility rates if alternatives are not found.

Housing problems also are being felt across Paragould and Greene County, says Joe Higgins, executive director of the Paragould/Greene County Chamber of Commerce.

"Housing is being built right now, but not fast enough to meet our demands," he says. "If it slows down due to rising interest rates, we're in trouble."

Higgins says Paragould is really working to keep up not only with the infrastructure, but also the possibility of increased crime. The key, he adds, is to recognize problems in such areas before they start.

As more families relocate to northeast Arkansas, Greene County schools are experiencing major growing problems. One of the schools in the county's northeast district is having to use a church building for classroom space.

Despite these situations, Higgins and Watson both feel confident that Paragould will be able to meet the new demands placed upon it.

"Northeast Arkansas is growing significantly," Higgins says. "We hope this will continue, but that is dependent on our ability to continue to attract new business and to provide housing and support to those who move here."

Watson says it's time for Paragould to enter a new phase of growth. He points out that the city is going to have to make some decisions as to how it will take care of its likely future growth.

"We're an area that has been overlooked in the past," Watson says. "We've worked really hard to develop an industrial park that can offer the lowest utility rates in the state."

Feeling the Crunch

The southwest part of the city, in particular, is feeling the crunch of meeting infrastructure demands.

Bill Brewer, CL&W Commission chairman, said at a November meeting that he and utility officials had met to discuss the problems and determined the issue was bigger than the commission had authority to deal with. That prompted the formation of a planning committee.

"I think Paragould as a city and this board need some direction," Brewer said at the meeting. "I'm not sure if it's this board's place to give the city that direction. I think we need to really reach out and ... get some ideas."

Planning comes at a time when the utility could be adversely affected by the Clinton administration's proposal to sell the Southwestern Power Administration. Paragould, which has one of the lowest utility rates in the state, is among several Arkansas municipalities that purchase cheap hydroelectric power from the agency at attractive rates.

United Forces

City Light & Water has worked closely with the city and county governments to bring industry and jobs to Greene County. Its plan involved expanding the industrial park and making the town more attractive to major companies.

"In 1986 Paragould's industrial land portfolio boasted just five acres available for development," Higgins says. "Now we have around 800 acres we can offer businesses."

The town has prospective industries visiting at least once every month, Higgins says; Paragould was lucky eight years ago if it saw an industry visit its park once a year.