Key Takeaways
- • The ASU System Board of Trustees unanimously approved Phase I construction of the Career Readiness Education & Skills Training (CREST) Center at Arkansas State University, with an estimated cost of $15 million and a 12-month construction timeline for the initial 26,000 square feet of a planned 70,000-square-foot facility.
- • The CREST Center project is funded through a diversified capital structure: $7.5 million from the Arkansas Department of Commerce's HIRED Grant Program, $3 million in public and private funds, and $4.5 million in loan proceeds.
- • The board approved exploration of New Market Tax Credits (NMTC) financing to reduce overall project financing costs, targeting investment in qualifying low-income communities with access to private capital.
- • The center represents a collaborative three-institution initiative between Arkansas State University, ASU-Newport, and Arkansas Northeastern College, designed to provide workforce development in advanced automated manufacturing, steel manufacturing, and food processing with transferable credentials toward four-year degrees.
- • The ASU System also approved the sale of the McAdams House (president's residence) at 48 Chenal Circle in Little Rock for $1,585,000, exceeding the appraised value.
Summary
The ASU System Board of Trustees advanced multiple capital initiatives during a Thursday meeting in Little Rock, including approval for Phase I construction of the Career Readiness Education & Skills Training (CREST) Center at Arkansas State University's Jonesboro campus. The unanimous board action clears the path for a $15 million first phase representing 26,000 of the facility's planned 70,000 square feet, with construction expected to complete within 12 months.
The CREST Center project reflects a deliberate capital structuring approach combining public and private funding sources. The $15 million Phase I budget includes $7.5 million from the Arkansas Department of Commerce's HIRED Grant Program, $3 million in public and private contributions, and $4.5 million in loan proceeds. This diversified funding model positions the project to leverage additional capital through New Market Tax Credit financing, which the board separately approved for exploration. NMTC programs are designed to incentivize private investment in projects within qualifying low-income communities while reducing overall project financing costs—a strategic consideration for institutional investors evaluating alternative investment opportunities in regional economic development.
The CREST Center is structured as a collaborative workforce development platform spanning three institutions: Arkansas State University, ASU-Newport, and Arkansas Northeastern College. The facility will focus on advanced automated manufacturing, steel manufacturing, and food processing sectors, providing job-ready credentials and skills training to students, workers, and underemployed individuals. Credits earned at the center will transfer toward four-year degree programs at A-State, creating a pathway for workforce credentialing and degree completion.
In separate action, the board approved the sale of the McAdams House, the former ASU System president's residence located at 48 Chenal Circle in Little Rock. The property sold for $1,585,000 against a contingent offer structure, representing a premium to the appraised value and indicating potential real estate appreciation or strong market demand for the residential asset in the Little Rock market.
The CREST Center project reflects a deliberate capital structuring approach combining public and private funding sources. The $15 million Phase I budget includes $7.5 million from the Arkansas Department of Commerce's HIRED Grant Program, $3 million in public and private contributions, and $4.5 million in loan proceeds. This diversified funding model positions the project to leverage additional capital through New Market Tax Credit financing, which the board separately approved for exploration. NMTC programs are designed to incentivize private investment in projects within qualifying low-income communities while reducing overall project financing costs—a strategic consideration for institutional investors evaluating alternative investment opportunities in regional economic development.
The CREST Center is structured as a collaborative workforce development platform spanning three institutions: Arkansas State University, ASU-Newport, and Arkansas Northeastern College. The facility will focus on advanced automated manufacturing, steel manufacturing, and food processing sectors, providing job-ready credentials and skills training to students, workers, and underemployed individuals. Credits earned at the center will transfer toward four-year degree programs at A-State, creating a pathway for workforce credentialing and degree completion.
In separate action, the board approved the sale of the McAdams House, the former ASU System president's residence located at 48 Chenal Circle in Little Rock. The property sold for $1,585,000 against a contingent offer structure, representing a premium to the appraised value and indicating potential real estate appreciation or strong market demand for the residential asset in the Little Rock market.
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