Hutchinson: Lockheed Martin project a 'golden opportunity' for state

Gov. Asa Hutchinson, Sen. Tom Cotton and U.S. Rep. Bruce Westerman tour a Joint Light Tactical Vehicle Tuesday before a news conference at the state Capitol.
Gov. Asa Hutchinson, Sen. Tom Cotton and U.S. Rep. Bruce Westerman tour a Joint Light Tactical Vehicle Tuesday before a news conference at the state Capitol.

Gov. Asa Hutchinson on Tuesday called a super-project state legislators will consider supporting with millions in state-issued bonds a "golden opportunity" while acknowledging he has philosophical concerns with government providing such monetary support to private companies.

Hutchinson spoke Tuesday outside the Arkansas state Capitol alongside members of Arkansas' congressional delegation, state legislators and Lockheed Martin company officials hours before lawmakers were to convene for a special session. The main issue is the super-project, which if approved would have the state providing Lockheed Martin $87.1 million in state bonds in an attempt to win a major Department of Defense contract to build Joint Light Tactical Vehicles for the military at a facility in East Camden.

Hutchinson called the state investment "extremely wise" and a "economic boost" to the state that will retain more than 500 existing jobs, create about 600 new ones and draw more through suppliers who will likely locate to Camden to support the production.

But he acknowledged criticism of the deal regarding the money the state is directing toward a private company.

"Philosophically, I share those concerns," he said. "The fact is we'd all like to be purists in which there is not any government involvement in high-stakes super-projects. But the fact is we've got a competitive environment with other states. Other states in various ways are supporting these super-projects. Arkansas has been on the losing ends of many of those competitions and we want to compete. And so, this is where you set aside pure economic theory and say, 'Let's be practical, let's compete.'"

Arkansas is one of three finalists to win the contract, which is expected to be awarded this summer.

Most of the state bond money would go toward infrastructure and building costs at the site in East Camden with some covering bond costs and a training program.

Hutchinson spoke on the Capitol steps alongside U.S. Sens. John Boozman and Tom Cotton and U.S. Rep. Bruce Westerman after company officials led them on a tour of one of the Joint Light Tactical Vehicles, or JLTVs, that was parked at the Capitol for the event.

The vehicle, which will replace the military's Humvee, represents a real improvement, said Cotton, a former U.S. Army Ranger. He said the military's work to modernize its fleet is "critical," noting the JLTVs will provide soldiers with better survivability, mobility and reliability.

Cotton said the Camden investment could spur additional investments as time goes on.

"I think that it will be the first of many new projects we can bring to south Arkansas, where the workers are not just skilled but they are also very patriotic and they always keep in mind that the end user, their customer, is the war fighter on the front lines trying to keep our country safe," he said.

Also speaking in favor of the project Tuesday were the leaders of the Arkansas House and Senate, which will convene for the special session at 3 p.m. The session was called to consider the super-project bond issuance, though several other topics will also be considered.

Arkansas Senate President Jonathan Dismang, R-Searcy, called it an "exciting day" for the state and thanked Hutchinson and his predecessor, Gov. Mike Beebe, for their work on bringing the project to the state.

"I think the Arkansas Capitol grounds are improved by this JLTV out front," Dismang said, "and I think the state of Arkansas will be, too."

See Wednesday's Arkansas Democrat-Gazette for more on this story.

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