A special joint meeting of the Fort Smith Board of Directors and the Sebastian County Quorum Court will be held Monday (Dec. 9) at 6 p.m. at the Elm Grove Community Center to address funding issues associated with the Ben Geren Aquatics Center and possibly amend an interlocal agreement between the governments that lays out funding and operating expectations for the project.

It was revealed in November that the aquatics center would cost close to $11 million to construct should all amenities desired by the public and both governments be included. The original budget was $8 million.

The meeting Monday will present a revised aquatics center design that would bring the project to an $8.8 million price tag with fewer amenities. Requesting additional funds would require additional monies from both governments therefore necessitating the amended interlocal agreement, according to Fort Smith Deputy City Administrator Jeff Dingman.

"The whole thing is anticipated to be equally divided, including the cost of in-kind services," he said, adding that the amended agreement would bring the city's total additional funding  to $457,000 while the county would contribute $342,500 extra to the project. The amount of in-kind services (labor, materials, etc.) provided by the city would equal $335,000 while the county would contribute $450,000 in in-kind contributions.

Dingman also said the public wanted the additional amenities, elected officials have not provided a way to fund such a project.

"We (the city staff) liked the $11 million design better because it incorporated everything we want, but without the elected officials giving us instruction to do something different, we have to do (what we can afford)," he said, adding again that while the city staff wants the larger project, "we don't feel like we can advance a design that is that far out of our budget."

Simply asking both governments to approve additional funds is challenging, as the Quorum Court has previously turned down a request from the city for more funding.

"We are taking a little bit of a chance asking for $8.8 million to get a few more amenities in this thing. If they want to do something different, we'll do something different. But we feel more comfortable with the $8.8 million."

Dingman said he felt this request could result in a positive vote from the Quorum Court and the Board of Directors (the Board previously approved the attempt early this year to get $800,000 in additional funding for the project). The previous request for the additional funding would have had the county loaning the city it's half of the extra funds with payback over a three-year period.

"It's my understanding that that was one of the reasons the county didn't like the proposal and didn't approve that. We have cash flow now that we didn't have at that point if we were going to start the project earlier. Cash flow is not an issue for us now like it was eight months ago. …The additional funds would come from the eighth-cent sales tax dedicated to park capital improvements. With the project schedule as it is at this point, we don't think there will be any problems with cash flowing that amount from the sales tax."

The Board and Court will be presented with a newly-revised concept designed jointly by Larkin Aquatics and the project's construction manager, Flintco. The revised concept will eliminate the diving well and reduce the length of the lazy river, according to a PowerPoint presentation included in materials prepared for elected officials to be present at the meeting.

"There's some pretty significant changes," Dingman said. "The most significant changes they'll see is we originally had three different bodies of water. The scaled down has only two separate bodies of water. Also, it eliminates a separate concession stand building and incorporates it into the bathhouse."

Additionally, structures in the kiddie pool will be smaller, while the aquatic center's four slides will now empty into the lazy river instead of a separate pool.

"It certainly doesn't include all the features we want, but it is a lot closer to the budget that we've got," Dingman said. "We can't have it both ways. If we want all the features, we have to have more budget. But look, we don't like it either. We'd rather have the larger facility. But we've had more time to look at the realities of what we can afford."

And even though the aquatics center design will now be smaller in scale, Dingman said "we've always had the idea that we could design this to expand in the future."

Sebastian County Judge David Hudson said he believes the meeting will help solidify plans that must stay on schedule in order for a guaranteed opening date for summer 2015.

"This will bring clarity and focus to the project by specifically presenting an action plan and a time frame so we can move forward and continue to meet the projected opening date of Memorial (Day) 2015. That's the real focus of the meeting," he said. "Any other ideas or funding concepts that come out of this discussion, I guess that's subject to what develops in the meeting. But we have a specific course of action that's being laid out."

The meeting will take place Monday at 6 p.m. at the Elm Grove Community Center on Greenwood Road in Fort Smith.

Badgered Wal-Mart Board members, concerns about consumer confidence, and more notes on a U.S. manufacturing renaissance are part of the Northwest Arkansas Friday Wire for Dec. 6.

NOTES & ANALYSIS
• Watching consumer spending strength
Consumer spending in Arkansas bears watching. The collections, considered a barometer of consumer confidence, ended fiscal year 2013 on a down note. Collections in the segment for the fiscal year totaled $2.124 billion, up just 1.1% compared to the 2012 period, and 1.4% below forecast.

Sales and use tax collections during November totaled $175.2 million, up 1.2% from last year and 0.5% below the forecast. October collections of the tax were up just 0.3%.

Northwest Arkansas is not necessarily immune from a possible slowdown in consumer spending.  In Benton County, sales tax collections totaled $2.829 million in the November report, down 2% from a year ago. Washington County reported November sales tax revenue of $2.789 million, up 2.12% from a year ago.

• The office space watch
More than five years ago, several Northwest Arkansas banks and commercial space developers found themselves in a situation of having too much space and not enough demand. It’s possible that the supply-demand ratio has returned to manageable levels.

As more Wal-Mart suppliers and third-party service firms are hanging shingles in Northwest Arkansas, real estate experts and retail insiders around Bentonville say the commercial office space market is tightening. Insiders estimate more than 1,300 suppliers have set up offices within a 27-mile of Wal-Mart’s home office in Bentonville in the past decade. This employment sector provides nearly 6,000 local jobs and continues to expand each year.

It will be interesting to see if developers, bankers and others are careful to avoid another supply bubble.

ICYMI
Following are a few stories posted this week on The City Wire that we hope you didn’t miss. But in case you missed it ...

• Badgered board members
Serving on the Wal-Mart Stores Board of Directors pays a handsome amount, but it’s not without some hazards as the retail giant is regularly a target for protestors from various union-sponsored groups. High profile exec Marissa Mayer, CEO of Yahoo, has been a board member for Wal-Mart Stores since 2012, and during that time she has been dogged by protestors at numerous events when she was scheduled to speak about Yahoo.

• Better connections
The ambitious effort to expand broadband capability in Arkansas public schools moved forward as two working groups accepted an engineering report and recommended the state proceed with a potential public-private partnership. Administration and industry officials have been working on a plan to boost the state’s public schools to a nationally recommended broadband capability of 100 Mbps per 1,000 students and staff.

• Oh Baby
As a fifth generation Arkansas family farmer, Fran Free set off to the University of Arkansas to study agriculture so she could learn the latest innovation to keep the farm relevant and profitable. Oh Baby Foods, the first baby food company in the world to have all its products verified through the Non-GMO Project [Non-genetically modified organisms], celebrated its fourth anniversary in November. From offices on the Fayetteville Square, Free has put her healthy products in stores in 20 states, including the notoriously stringent Whole Foods.

NUMBERS ON THE WIRE
$23 million: Estimated cost of construction for the Don Tyson Parkway interchange with Interstate 540. The project is slated for an August 2014 completion.

114,000: Estimated number of Southwestern Electric Power Company customers in Northwest Arkansas. The utility was on standby to handle disruptions from the Thursday-Friday (Dec. 5-6) winter weather in the area.

$376 million: Estimated negative annual impact to the trucking industry by the federal implementation of stricter driver work rules. However, federal officials say the overall economic benefit of safer conditions is $280 million annually.

489,666: Number of enplanements at the Northwest Arkansas Regional Airport during the first 10 months of 2013, up 2.8% compared to the same period of 2012.

OUTSIDE THE WIRE
• Legal fees
Wal-Mart Stores Inc is paying for lawyers to represent more than 30 of its executives involved in a foreign corruption investigation, according topeople familiar with the matter, an unusually high number that shows the depth of the federal probe.

• Manufacturing renaissance?
U.S. manufacturers are enjoying a 21st-century renaissance that is riveting stock investors to industrial companies, and many analysts predict this “Made in the U.S.A.” theme could be a winner in 2014.

• Razorback renaissance?
Bret Bielema's first season as the head coach at Arkansas was less than successful as the Razorbacks went winless in the Southeastern Conference for the first time in school history (first winless conference season since 1942 in the Southwest), 3-9 overall and ended the year on a nine-game losing streak.

WORD ON THE WIRE
“At some point if distractions become too much, board members might resign that post, especially since most are already running a company full-time, for which they are earning a much larger salary than a board stipend.”
– Allan Ellstrand, University of Arkansas professor and corporate governance expert, about Wal-Mart Board members who face protests because of their board membership

“I don’t know when we will be able to retire these preferred shares, whether the Treasury owns them or someone else does. We participated in TARP willingly and our bank definitely benefited from the capital infusion which helped us ride out a prolonged recovery time. We intend to pay back every cent, but we won’t put the bank in any jeopardy to do so.”
– Gary Head, CEO of Signature Bank, about the bank’s plan to repay a $16.8 million U.S. Treasury loan

"We're still growing and we're not where we want to be. As an entrepreneur, you still want to keep stabbing at it. But I think where we've been, like any business growing up it's hard – you go through times (asking), 'What am I doing? I'm not going to make it.' And our biggest thing between my wife and myself is we've just learned to trust in our faith."
– Chad Hudson, CEO of Hot Liquidation Spot, about the four-year struggle to grow the business

A Fort Smith budget battle, technology tussle, fuzzy trucking math and more notes on a U.S. manufacturing renaissance are part of the Nov. 8 Friday Wire for the Fort Smith region.

NOTES & ANALYSIS
• Construction impact
Residential and commercial construction in the Fort Smith area continues to be a bright spot – one of the few – in the regional economy.

Building permits in Fort Smith, Greenwood and Van Buren were a combined $5.944 million for the month of November, a drop of 64.82% from the same month last year when permits totaled $16.899 across the three cities. However, the three cities have continued an increase of building permit values for the year as a whole, posting a 40.12% increase in value from January through November 2013 ($195.226 million) compared to the same period last year ($139.329 million).

The city of Fort Smith posted the largest 11 month total, bringing in $166.834 million, while Van Buren had permits totaling $15.411 million and Greenwood posted only $7.576 million in permits so far this year.

• Watching consumer spending strength
Consumer spending in Arkansas bears watching. The collections, considered a barometer of consumer confidence, ended fiscal year 2013 on a down note. Collections in the segment for the fiscal year totaled $2.124 billion, up just 1.1% compared to the 2012 period, and 1.4% below forecast.

Sales and use tax collections during November totaled $175.2 million, up 1.2% from last year and 0.5% below the forecast. October collections of the tax were up just 0.3%.
Northwest Arkansas is not necessarily immune from a possible slowdown in consumer spending.  In Benton County, sales tax collections totaled $2.829 million in the November report, down 2% from a year ago. Washington County reported November sales tax revenue of $2.789 million, up 2.12% from a year ago.

ICYMI
Following are a few stories posted this week on The City Wire that we hope you didn’t miss. But in case you missed it ...
• Technology tussle
The fight between Sebastian County Judge David Hudson and County Treasurer Judith Miller over financial software to be used in her office continues following a vote of the Quorum Court on Nov. 26 that would force Miller to allocate $115,000 to the county's information technology department to maintain software she said is not used by her office.

• Better connections
The ambitious effort to expand broadband capability in Arkansas public schools moved forward as two working groups accepted an engineering report and recommended the state proceed with a potential public-private partnership. Administration and industry officials have been working on a plan to boost the state’s public schools to a nationally recommended broadband capability of 100 Mbps per 1,000 students and staff.

• Revenue predictions
Economic uncertainty combined with concerns about income growth have resulted in a lower Arkansas tax revenue estimate for fiscal year 2014 and a small projected increase for fiscal year 2015.

NUMBERS ON THE WIRE
$47.919 million: Estimated expenses in the fiscal year 2014 Fort Smith budget recently approved by the Fort Smith Board of Directors. Estimated revenue in the budget is $45.716 million.

71,171: Number of enplanements at the Fort Smith Regional Airport during the first 10 months of 2013, down 2.5% compared to the same period in 2012. The decline is an improvement compared to the 7.4% year-over-year decline at the end of the first quarter.

$376 million: Estimated negative annual impact to the trucking industry by the federal implementation of stricter driver work rules. However, federal officials say the overall economic benefit of safer conditions is $280 million annually.

$91,000: Average price of foreclosed home sales in Sebastian County during October, up from $85,000 in October 2012.

OUTSIDE THE WIRE
• Manufacturing renaissance?
U.S. manufacturers are enjoying a 21st-century renaissance that is riveting stock investors to industrial companies, and many analysts predict this “Made in the U.S.A.” theme could be a winner in 2014.

• Razorback renaissance?
Bret Bielema's first season as the head coach at Arkansas was less than successful as the Razorbacks went winless in the Southeastern Conference for the first time in school history (first winless conference season since 1942 in the Southwest), 3-9 overall and ended the year on a nine-game losing streak.

WORD ON THE WIRE
"I just want to go on record as being opposed to this budget. I think that we haven't gone far enough to cut our expenses or increase our revenues – a $2.2 million difference between revenues and expenses."
– Fort Smith Director Keith Lau

“The agency used logic that forcing break, rest, or driving periods at a particular time was a one size fits all proposition. Cardian rhythms and all types of fuzzy math were introduced by people that have never experienced being in a truck.”
– Greg Carman, president of Fort Smith-based Carman Inc. and a board member of the Arkansas Trucking Association, about federal Department of Transportation rules that regulate hours of service for truck drivers

"(We are) putting a metal detector at the front door here. It's just the way it is today and we don't want to pull someone off patrol."
– Van Buren Mayor Bob Freeman about budgeting money for a new police officer to provide security at the city offices

Small year-over-year gains in the Fort Smith metro workforce and the number of employed saw the October metro jobless rate fall to 7.3% compared to 7.5% in October 2012. However, the October rate increased from 7.2% in September.

October did see record employment levels in the region’s Trade, Transportation and Utilities sector and the Education and Health Services sector.

Metro employment of 133,430 was relatively flat compared to the 133,231 in October 2012 and the 133,460 in September 2013, according to figures from the U.S. Bureau of Labor Statistics.

October was the 58th consecutive month the Fort Smith metro jobless rate has been at or above 7%.

Six of the eight metro areas in or connected to Arkansas had jobless rate increases in October compared to October 2012, and five areas (Fort Smith, Hot Springs, Little Rock/North Little Rock, Memphis and Pine Bluff) had jobless rate increases compared to September.

During October, the lowest metro jobless rate in the state was in Northwest Arkansas with 5.1% and the highest rate was 9.6% in the Pine Bluff area.

FORT SMITH METRO NUMBERS
The size of the Fort Smith regional workforce during October was 133,430, down from the 133,460 during September, and above the 133,231 during October 2012. The labor force reached a revised high of 140,253 in September 2007. The average annual monthly labor size was 133,028 during 2012, 133,275 during 2011, 135,590 during 2010, 134,751 and during 2009.

Unemployed persons in the region totaled an estimated 9,705 during October, up from the 9,705 during September, and below the 10,0032 during October 2012.

The Fort Smith area manufacturing sector employed an estimated 18,500 in October, unchanged compared to September, and below the 18,900 during October 2012. Employment in the sector is down almost 35% from a decade ago when October 2003 manufacturing employment in the metro area stood at 28,700. Also, the annual average monthly employment in manufacturing has fallen from 28,900 in 2005 to 19,200 in 2012 – the first year the average has dropped below 20,000 since surpassing that level.

Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 26,100 in October, up compared to 25,600 in September, and above the 24,800 during October 2012. The October estimate is a new high for employment in the sector.

Employment in the region’s tourism industry was 9,400 during October, unchanged compared to September and above the 9,000 in October 2012. The sector reached an employment high of 9,800 in August 2008.

In Education & Health Services, employment was 18,200 during October, up from 18,000 in September and above the 17,200 during October 2012. The October employment level is a record for sector employment in the Fort Smith area. Annual average monthly employment in the sector has steadily grown since 2005 when it reached 14,000. In 2012 the average was 17,100.

In the Government sector, employment was 19,700 during October, up from 19,300 in September and above the 19,600 in October 2012.

NATIONAL NUMBERS
Unemployment rates were lower in October than a year earlier in 280 of the 372 metropolitan areas, higher in 79 areas, and unchanged in 13 areas, noted the broad BLS report.

The U.S. unemployment rate in October was 7.3%, down from 7.9% from a year earlier. Arkansas’ jobless rate was 7.5% in October, up from 7.4% in September and up from 7.2% in October 2012.

Oklahoma’s jobless rate during October was 5.5%, up from 5.4% in September, and up from 5.2% in October 2012. The Missouri jobless rate during October was 6.5%, down from 6.9% in September and down from 6.7% in October 2012.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
Oct. 2013: 5.1%
Sept. 2013: 5.2%
Oct. 2012: 5%

Fort Smith
Oct. 2013: 7.3%
Sept. 2013: 7.2%
Oct. 2012: 7.5%

Hot Springs
Oct. 2013: 7.8%
Sept. 2013: 7.6%
Oct. 2012: 6.9%

Jonesboro
Oct. 2013: 6.4%
Sept. 2013: 6.4%
Oct. 2012: 6.4%

Little Rock-North Little Rock-Conway
Oct. 2013: 6.5%
Sept. 2013: 6.4%
Oct. 2012: 5.9%

Memphis-West Memphis
Oct. 2013: 9.5%
Sept. 2013: 9.4%
Oct. 2012: 8.6%

Pine Bluff
Oct. 2013: 9.6%
Sept. 2013: 9.4%
Oct. 2012: 8.5%

Texarkana
Oct. 2013: 7%
Sept. 2013: 7.3%
Oct. 2012: 6.2%

FORT SMITH METRO AREA HISTORY
Past annual average unemployment rates
2012: 8.2%
2009: 7.9%
2008: 4.8%
2007: 5.3%
2006: 4.9%
2005: 4.5%
2004: 5.2%
2003: 5.5%
2002: 5%
2001: 4.2%
2000: 3.7%

The Northwest Arkansas jobless rate in October was 5.1%, down compared to September, but an estimated increase in the number of unemployed pushed the rate higher than the 5% in October 2012.

Metro employment of 227,760 was up 1.19% compared to October 2012, but was down compared to the 228,357 employed in September, according to figures released by the U.S. Bureau of Labor Statistics.

Six of the eight metro areas in or connected to Arkansas had jobless rate increases in October compared to October 2012, and five areas (Fort Smith, Hot Springs, Little Rock/North Little Rock, Memphis and Pine Bluff) had jobless rate increases compared to September.

During October, the lowest metro jobless rate in the state was in Northwest Arkansas with 5.1% and the highest rate was 9.6% in the Pine Bluff area.

The October report marked the 15th consecutive month that the region’s jobless rate has been at or below 6%.

NWAMETRO NUMBERS
The size of the Northwest Arkansas regional workforce during October was estimated at 240,112, down from the 240,837 during September, and ahead of the 236,845 during October 2012. June was the first month the region’s workforce has topped 240,000. The average annual monthly labor size was 231,461 during 2012, 229,950 during 2011, 226,593 during 2010 and 224,336 during 2009.

Following are other key figures from the BLS metro report.
• Unemployed persons in the region totaled 12,352 during October, below the 12,480 during September and above the 11,744 during October 2012.

• The Northwest Arkansas manufacturing sector employed an estimated 26,800 in October, unchanged compared to September, and above the 26,700 during October 2012. Sector employment is down more than 21% from more than a decade ago when October 2003 manufacturing employment in the metro area stood at 34,200.

• Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 51,300 in October, up from 50,900 during September, and up from the 48,600 during October 2012. The October employment level, which is subject to future revision, is a new record in Northwest Arkansas for the sector.

• Employment in the region’s tourism industry was 22,000 during October, down from the 22,300 in September and up from 20,900 during October 2012. The September employment is a new record for the sector.

• In Education & Health Services, employment was 26,000 during October, up from 25,800 during September and up from 24,700 during October 2012.

• In the Government sector, employment was 31,300 during October, up from 30,500 in September and up compared to 31,000 during October 2012.

NATIONAL NUMBERS
Unemployment rates were lower in October than a year earlier in 280 of the 372 metropolitan areas, higher in 79 areas, and unchanged in 13 areas, noted the broad BLS report.

The U.S. unemployment rate in October was 7.3%, down from 7.9% from a year earlier. Arkansas’ jobless rate was 7.5% in October, up from 7.4% in September and up from 7.2% in October 2012.

Oklahoma’s jobless rate during October was 5.5%, up from 5.4% in September, and up from 5.2% in October 2012. The Missouri jobless rate during October was 6.5%, down from 6.9% in September and down from 6.7% in October 2012.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
Oct. 2013: 5.1%
Sept. 2013: 5.2%
Oct. 2012: 5%

Fort Smith
Oct. 2013: 7.3%
Sept. 2013: 7.2%
Oct. 2012: 7.5%

Hot Springs
Oct. 2013: 7.8%
Sept. 2013: 7.6%
Oct. 2012: 6.9%

Jonesboro
Oct. 2013: 6.4%
Sept. 2013: 6.4%
Oct. 2012: 6.4%

Little Rock-North Little Rock-Conway
Oct. 2013: 6.5%
Sept. 2013: 6.4%
Oct. 2012: 5.9%

Memphis-West Memphis
Oct. 2013: 9.5%
Sept. 2013: 9.4%
Oct. 2012: 8.6%

Pine Bluff
Oct. 2013: 9.6%
Sept. 2013: 9.4%
Oct. 2012: 8.5%

Texarkana
Oct. 2013: 7%
Sept. 2013: 7.3%
Oct. 2012: 6.2%

NORTHWEST ARKANSAS METRO AREA HISTORY
Past annual average unemployment rates
2012: 5.6%
2011: 6.2%
2010: 6.5%
2009: 6.1%
2008: 4.1%
2007: 3.8%
2006: 3.6%
2005: 3.3%
2004: 3.8%
2003: 3.7%
2002: 3.3%
2001: 3%
2000: 2.9%

Two weeks after Wal-Mart Stores Inc. chose Doug McMillon to be the next CEO beginning Feb. 1, the retail giant has tagged David Cheesewright as president and CEO of the Walmart 
International, the position now held by McMillon.

Cheesewright was the name most mentioned to succeed McMillon given his global resume that spans 25 years of international retail management expertise.
 The 51-year-old Cheesewright oversaw the acquisition of Massmart and managing the retailer’s aggressive growth strategies in Canada and the United Kingdom since 2011.


"David will lead the division at an exciting time," said McMillon. "We have strengthened our business and gained market share in the majority of our international markets, and he had a key role in that success.”


Wal-Mart's international division represents a major growth segment for the retailer. It has more than 6,200 retail units and generates nearly 30% of its revenue. During the third quarter, Walmart International's net sales grew 4.1% on a constant currency basis. 

This outstripped the U.S. division's net sales growth, which rose 2.4% during the period.

In recent years, much of the retailer’s revenue growth has come from its international division as same-store sales in the U.S. segment have fallen into a flat to 2% range which analysts expects will continue.


McMillon noted in the release that Cheesewright’s wealth of experience and proven track record of innovation and governance were key to this promotion.
 After joining the company in 1999 and working at Asda, its U.K. operation, Cheesewright rose through the ranks, serving as the chief operating officer for Walmart Canada and Asda. Before that, he was in a leadership role with Mars Confectionery.

“With his deep knowledge of the company, our customers, and our purpose, he is the ideal person to steer our next chapter of continued, long-term growth,” McMillon said.

He helped develop and expand Asda's online grocery delivery program and serves on the board of Walmart's China e-commerce business, Yihaodian. 


"I'm honored to be named to lead our international business at a time when our customers around the world need us more than ever," said Cheesewright.

"Through strong capital discipline, we will continue to invest in new stores and e-commerce growth, as well as productivity improvements that drive profitable growth and returns."

Wal-Mart said it will name a replacement for Cheesewright in the next few weeks.

A project announced at Tuesday's (Dec. 10) Board of Directors meeting will not only improve the appearance of one of the city's busiest intersections, but it could lead to a new city commission tasked with making Fort Smith a city of beauty.

According to Nancy Smreker, president of Beautify Fort Smith, the group has raised about $90,000 in funding to transform the interchange of Rogers Avenue and Interstate 540 into an area landscaped with more than 4,000 shrubs and more than 100 trees.

Funding for the project comes from various groups, including the city of Fort Smith, First National Bank, Arvest Bank, the Family Enterprise Institute at the University of Arkansas at Fort Smith, Westphal Companies, Steve Forsgren and state turn back funds, she said. Landscape design and installation would be provided by Frank Sharum Landscape Design of Fort Smith.

“(Frank Sharum) has agreed to design this landscape…plant it at less than his cost,” she said. “He's planting 4,400 shrubs and plants, 119 trees, he's installing the sprinkler system, laying Bermuda sod and putting mulch around all of this. I want to say it could not happen without Frank Sharum because he has the eye for the design, but he is also willing to donate above and beyond what anybody would ask him to do.”

While Beautify Fort Smith made news Tuesday with their announced plans for the Rogers Avenue and I-540 interchange, the group has already begun a project on private property along Phoenix Avenue to enhance the street's appearance and is working toward becoming a city commission.

The goal of the commission will be not only beautification but also awareness, according to Director of Sanitation Baridi Nkokheli, whose agency will work with the commission to accomplish its goals and mission.

"The purpose and goal of the (commission), as we see it, will be to create public awareness by involving local citizens in beautification efforts, neighborhood cleanups, litter reduction, and solid waste diversion," he wrote in a memo to the Board. "The (commission) will act as the liaison for the City of Fort Smith with Keep American Beautiful (KAB) and Keep Arkansas Beautiful."

Furthermore, the commission will research and develop strategies for keeping the city's appearance up to standard, targeting areas that fall below set standards with beautification efforts such as littler removal, landscaping and the planting of flowers and trees, Nkokheli said.

"The (commission) will provide the resources and support required to assume the lead in coordinating all interested parties concerned about beautification, litter reduction, and recycling to bring about a concerted effort of all interested parties doing their part to effect real change."

While the commission will receive limited funding from the city, it will also be able to solicit sponsorships to assist in beautification efforts, Nkokheli wrote.

"Sponsors could donate goos such as garbage bags, gloves, and equipment to help with these projects," he said. "The costs associated with these programs would include advertising and producing brochures and/or flyers for promotion."

Additionally, the city's Fiscal Year 2014 budget includes funding for a part-time beautification and recycling coordinator "to administer the work of the committee and serve as a liaison between the City and the volunteer committee," Nkokheli said.

Smreker said all of the work her group plans to do once it is officially a commission of the city, which should happen sometime during mid-2014, would not alter the groups goal – beautifying the city of Fort Smith.

"We feel like the beautification of our city is an economic investment and we really feel like this will draw people to want to live here, to buy into business here, or maybe bring other businesses (from outside Fort Smith to the city) because we want to make the city of Fort Smith a very appealing place to live. Part of that has to do with the beautification."

In other business, the Board met in a special meeting to approve a resolution authorizing City Administrator Ray Gosack to accept an offer made by property owner Steve Beam of $147,500 for property the city is acquiring in connection to the Mill Creek Pump Station and Equalization Tank Project. The Board previously voted down a resolution that would have acquired Beam's property through eminent domain for a rate of $86,000.

Jim Dunn said Tuesday (Dec. 10) that the U.S. Marshals Museum leadership and staff have a lot to do in the next few months as they work to meet a Sept. 24 groundbreaking. The focus of that work will be on securing more than $25 million in donations for a museum expected to cost more than $50 million.

Dunn, president and CEO of the U.S. Marshals Museum, said part of that activity includes boosting national exposure of the museum effort and working with the U.S. Mint on a Marshals Service commemorative coin.

“We’ve got a lot to accomplish in the next six to nine months ... so stay tuned,” Dunn said during Tuesday’s meeting of the Marshals Museum Board of Directors.

Groundbreaking for the U.S. Marshals Museum, which will include 20,000 square feet of exhibition space and will be located on the riverfront in downtown Fort Smith, is set for Sept. 24, 2014, to coincide with the 225th anniversary of the creation of the service in 1789. The U.S. Marshals Service is the oldest American federal law enforcement agency and was established by President George Washington.

In January 2007, the U.S. Marshals Service selected Fort Smith as the site for the national museum. The cost to build the museum — including exhibit work — is estimated at around $53 million. Although the announcement was made in 2007, formal fundraising activities did not begin until the latter part of 2009.

A museum cornerstone ceremony was held Nov. 9, at which high-profile attendees included U.S. Marshals Service Director Stacie Hylton, the first female director of the service; Bill John Baker, principal chief of the Cherokee Nation; former U.S. Attorney General Edwin Meese; and Howard Safir, former associate director of the U.S. Marshals Service and the former commissioner of the New York Police Department.

Dunn said in mid-August that the museum effort needs between $10 million and $15 million more to reach the “threshold” of between $30 million and $35 million needed to break ground and begin construction. Dunn is also banking on new market tax credits for partial funding of the museum, which he said should bring in nearly $10 million.

Financials from the museum show $5.26 million in cash, cash equivalents and pledges. Riverfront land for the museum site, donated by the Robbie Westphal family, is valued at $1.868 million.

Between $4 million and $5 million could come from sales of a U.S. Marshals Service commemorative coin. The coin is scheduled to be minted in 2014 to coincide with the 225th anniversary of the establishment of the Marshals Service. Money from the coin that go to the museum are restricted to fund “the preservation, maintenance, and display of artifacts and documents” at the Marshals Museum. Revenue from coin sales will also go to the Federal Law Enforcement Officers Association, the National Law Enforcement Museum, and the National Center for Missing and Exploited Children.

Dunn said Tuesday that about 98% of all coin sales happen through marketing and efforts of the U.S. Mint. Generating the most revenue from coin sales will require the Marshals Museum aggressively pursuing the remaining 2%. He said recent meetings with U.S. Mint officials have been positive.

“The Mint stands ready to cooperate with us by any means possible,” Dunn said, adding that Jessica Hayes, vice president of museum operations, will work with the Mint on coin sales.

OTHER NEWS
• The museum has secured the rifle used by German-born George Maledon who became the hangman for Judge Isaac Parker’s federal court. Dunn called the 1873 Winchester rifle a “prize artifact” for the museum, and thanked Board Member and Fort Smith businessman Rick Griffin for his help in securing the rifle.

• Former U.S. Sen. Blanche Lincoln, D-Ark., has been appointed to the National Leadership Council for the Marshals Museum fundraising campaign.

• Museum finances received a “clean” audit report from accountants at Lawrence, Schluterman & Schwartz and from Beall Barclay & Co.

• The Museum Board of Directors approved a joint policy that prescribes how funds will be transferred and recorded between the U.S. Marshals Museum and the U.S. Marshals Museum Foundation.

The Sebastian County Quorum Court remains uncertain regarding its funding obligations to Ben Geren Aquatics Center after Monday's (Dec. 9) split vote. Ditto for the Fort Smith Board of Directors.

The Quorum Court voted 7-6 on Monday to amend an interlocal agreement with the city of Fort Smith, which would allocate an additional $800,000 in combined funding from both governments to the Ben Geren Aquatics Center project, bringing the aquatics center budget to a combined $8.8 million. Since the measure did not pass with a super majority of nine votes, it must come up for two additional readings before the Court before it is approved.

All Fort Smith City Directors were asked Tuesday (Dec. 10) if they would vote in favor of the amended interlocal agreement at their upcoming Dec. 17 meeting and why. Their answers are as follows:

• Director George Catsavis: "No, I'm not. It just comes down to money, you know? I originally voted against it and I'm keeping the same position. It just boils down to finances and money, to me."

• Director André Good: "I don't know how I'm going to vote Tuesday. I'm kind of perplexed. I don't know how to address it. I don't know how to vote right now. Whatever the city does…if we move forward, we're going to be taking money from other park projects. Whether it's community projects or capital projects, they're going to be pushed back so we can fund this right. I just don't want to make any rushed movements, any rushed judgments. I'd like to meet with the Parks Commission and see what their thoughts are. But honestly, I really wish we could just start all over. I wish we had more time - I wish we weren't rushed and pressured by time - to go back, start over and honestly probably get another bid or two for building this thing."

• Director Keith Lau: "I'm undecided right now and the reason is I don't feel good about it. And I don't know whether it's better to over promise and under deliver or to not deliver at all or to say the citizens voted for a water park no matter what. So I'm still undecided. I haven't decided."

• Director Mike Lorenz: "I'm for it. The whole thing was started initially by the county. You know, I'm coming in here second hand now and yeah, questions probably should have been asked earlier about how accurate the pricing estimate was they got. But we've got to work with what we've got and I think we can build a very suitable park for that amount and plan for future expansion."

• Director Philip Merry: "I am studying it and here's where I'm at: I want to find a balance in my mind of what is the most right way possible we can do this without wasting money. I'm researching. I'm not sure how I'm going to vote yet because here's the deal - I want to make sure voting for less doesn't end up costing us more. Voting for not enough park, what if that creates not enough interest to cash flow the thing later? The paradox could set in that not doing it right cost more in the end because it won't cash flow. I want to make sure we build something fun and attractive and will cash flow. And so if we have kids there but not the teenagers, eating french fries and watching their little brother or sister, then I'm worried about the cash flow. I'm for the park, I want the park. But I still want answers on how it got from $8 million to $11 million. Not to fuss, but to learn. I don't even know which features are in at what level. It went from $8 million, to $8.8 million, to $9.2 million, to $11 million and now it's back to $9.4 million. So I'm for a water park, I don't understand the mix of the numbers. And I don't want to waste money. So I'm looking for how much will get us the right program without wasting money."

• Director Kevin Settle: "I'm going to vote for changing the interlocal agreement because we've already approved it. That's where I'm at with that…The Board's already approved it, we're just changing the terms of it."

• Director Pam Weber: "I'm not for anything less than what we told the voters we were going to get them. ... I'm going to suggest that we go back and study and see if there's anyway that we can get our plan back to where we had it. I'm very firm that the young people in this community need a seat at the table. And we've all talked about how we need to attract young people here and most importantly, we need to keep the young people that we educate. We want them to feel good about their community, to feel like there's a place here for them. That's why I'm so adamant in pushing to get the original water park design.

"I want to go back and say what do we have to do to get where we promised the voters we were going to be."

Most of the Fort Smith and Northwest Arkansas business leaders who responded to an informal survey from The City Wire are optimistic about overall economic conditions in 2014, but worry that federal regulations and changes in healthcare will curtail the potential for growth.

The survey followed a Bank of America Merrill Lynch report released Tuesday (Dec. 10) finding that chief financial officers around the country are more optimistic about U.S. economic growth than they were a year ago. Also, most of the CFOs expect their companies’ sales to increase in 2014, with growth coming from doing more business with current customers and winning new customers.

However, concerns remain about healthcare costs, which the CFOs cited as having the biggest potential impact on the U.S. economy.

Of the financial executives who participated in the annual survey of middle market companies (annual sales between $2 billion and $25 billion), 54% said their companies’ 2014 sales will be higher than in 2013. Another 37% expect sales to remain at the same level, while 8% expect a decline. When asked about potential negative impacts on the U.S. economy, CFOs most often named healthcare costs, with 67% ranking it as a significant concern. That was followed by the effectiveness of the U.S. government (62%) and the U.S. budget deficit (57%).

CFOs gave the U.S. economy an average score of 53 out of 100, up from 49 a year ago. In the 2013 CFO Outlook Mid-Year Update – a smaller survey with 250 respondents – the score was 58. CFOs gave the global economy a score of 50, up from 45 a year ago and comparable to the mid-year score of 51.

‘WELL-POSITIONED’
Gary Head, CEO of Signature Bank of Arkansas, said he is optimistic about Northwest Arkansas and U.S. economic growth in 2014, but has concerns about business costs.

“Heath care costs are impacting Legacy and will require a hard look at structure and benefits going forward,” Head said.

Sam T. Sicard, president and CEO of Fort Smith-based First Bank Corp., said he is “slightly” optimistic about 2014. First Bank operates several banks in Arkansas, including First National Bank of Fort Smith and First National Bank of Rogers.

“The housing market appears to be relatively healthy again, the rapid increase in the stock market will spur additional spending in early 2014 from capital gains, and consumers are in a better position to spend and borrow as they increased savings and reduced debt during the Great Recession,” Sicard said.

Sicard also believes economies in Northwest Arkansas and the Fort Smith region will see positive trends in 2014.

“Both regions are well-positioned to recruit industry with the quality of their workforce, quality of life they provide, and the financial and economic resources they have to recruit industry. Both regions had several job expansion announcements in 2013 that will come to fruition in 2014,” according to Sicard.

SOME PESSIMISM
Mike Callan, president of Fort Smith-based Arkansas Oklahoma Gas Corp., and chairman of the Arkansas State Chamber of Commerce Board of Directors, is “moderately pessimistic” about 2014 economic conditions.

“The fundamentals for economic growth, such as consumer confidence, regulatory certainty and the condition of foreign markets, are still questionable. Consumers and business owners are understandably moving cautiously,” Callan noted. “Foreign markets as well as our own, are still being propped up with and through government policies. Until some comfort with respect to future polices is restored, I believe the economy will continue to limp along.”

However, Callan is “cautiously” optimistic that economic conditions will improve in the troubled Fort Smith regional economy. October was the 58th consecutive month the Fort Smith metro jobless rate has been at or above 7%.

“We have seen a number of positives occur recently which bodes well for the coming year. Company expansions along with new companies moving to the (Fort Smith) area provide a ray of hope, especially when coupled with the efforts of the state in incentivizing economic development throughout Arkansas,” Callan said.

Callan also believes Arkansas’ economy will do well in 2014.

“Energy production will continue to generate jobs, economic opportunity and growth, if we can avoid overreaching regulations. We have what it takes to attract and retain businesses. However, we are competing for a small number of opportunities with every other region in the U.S. Therefore, apathy must be avoided. We have what it takes to quiet the naysayers and complainers, who, while very vocal, seldom present solutions,” Callan said.

CAUTIOUS OUTLOOK
Don Gibson, head of Springdale-based Legacy Bank, also is “cautiously” optimistic about economic conditions improving in 2014. He sees more jobs coming to Northwest Arkansas “in the coming months which should spur the economy.”

Mike Harvey, chief operating officer for the Northwest Arkansas Council, is “slightly” optimistic about U.S. economic conditions “if we can just manage to get out of our own way.” As for the Northwest Arkansas economy, he is bullish.

“Growth in the Northwest Arkansas economy is across the board. Housing is back, and look for job growth around a number of new locations/expansions announced in 2013,” Harvey said. “Also look for continued growth in the retail complex – especially around big data. Transportation and food will hold their own as well.”

WALMART SUPPLIER IMPACT
Cameron Smith, founder and CEO of Rogers-based Cameron Smith Associates, is neutral on his outlook for the U.S. economy in 2014. He said the pace of recovery following the 2008-2009 recession has been “frustratingly slow.” But like Harvey, he’s bullish on Northwest Arkansas and he’s encouraged by regional cooperation.

“My predictions for the Northwest Arkansas region are very encouraging. Following the lead of the NW Arkansas Council, many of the individual cities have brought in companies like Market Street Services to help evaluate regional strengths, weaknesses and opportunities backed by participation from many local business leaders. The cities in this region are more collaborative today than I have seen in the past 20 years, which gives me confidence that that there will be strong economic development,” Smith explained.

Part of Smith’s optimism is fueled by the growth he sees in the Wal-Mart supplier community. Smith’s firm works to find talent and leadership for many of the supplier companies.

“The Walmart supplier market that we work within is expected to grow. As the millennials enter the job market, they will be reinventing the job descriptions needed to manage the ever-changing Walmart business. By 2015 they will represent over 50% of the Walmart supplier jobs,” Smith said in a statement to The City Wire.

HEADWINDS
But it’s not all positive. Following are some of the concerns listed by respondents to the brief survey from The City Wire.
• Don Gibson, Legacy Bank
“The largest headwinds are those created by our President which is tighter credit limitations from Dowd-Frank and the unbelievable cost of Obamacare.”

• Mike Harvey, Northwest Arkansas Council
“Health and financial regulation will continue to cause difficulties for businesses and consumers. Legislators will avoid much-needed tax reform – again. And the end of QE (quantitative easing) and normalization of (interest) rates will require some adjustment in the near term.”

• Sam Sicard, First Bank Corp.
“One headwind we will continue to face is the increasing government regulations many businesses are dealing with and the challenges many businesses are facing with increasing healthcare costs. A potential additional headwind is uncertainty on whether the federal government will be governed in a responsible manner. The governing by crisis through shutdowns and the threat of debt defaults we faced in 2013 could continue in 2014.”

• Cameron Smith, Cameron Smith Associates
Possible negative economic factors in 2014 are “Uncertainty in the business community regarding healthcare costs, dysfunctional government, 2014 elections, and possible changes in the Fed.”

• Craig Rivaldo, Arvest Bank-Fort Smith region
“When the government stops Quantitative Easing, it could start to drive up interest rates.  It is anticipated the 10-years Treasury could go over the 3.0% mark. Additionally, the government has indicated that once Unemployment got below 7% they would start considering moving up short term interest rates ... Fed Funds Rate. Any movement up in rates could have a negative impact to businesses and ultimately could impact the economy.”

J. Thomas May came to Pine Bluff-based Simmons First National Corp. more than 25 years ago when the bank enterprise was a $500 million operation. $4.5 billion in assets and a quarter century later, May is set to pass the torch to the next generation.



On Tuesday (Dec. 10), Simmons First held a community celebration for May and invited the region to present well wishes to the retiring CEO who will be succeeded by CEO-elect George Makris.

“I’m awfully lucky to be able to work with him for one year under this transition period. A lot of people have to come in and immediately step in and make decisions. I sort of had an easy ride there for about six months. Then, he really put me to work,” Makris tells Talk Business.

Makris and the rest of Simmons First leadership have been hard at work with the $53.6 million acquisition of Little Rock-based Metropolitan National Bank. Makris said that many details of the bank merger will be forthcoming by Dec. 31 and by the end of the first quarter 2014.

May – who has been battling amyotrophic lateral sclerosis (ALS), also known as Lou Gehrig’s Disease – greeted guests for nearly two hours at the Pine Bluff Convention Center. He said he was excited for the new leadership changes coming to the bank and he was looking forward to his new endeavor: a charitable foundation.

May will be the first chairman of the Simmons First Foundation, a charitable giving extension of the bank. Makris said that a lot of the bank’s donations will move through the foundation, which will be seeded on Jan. 1, 2014 with a million dollars. Eventually, it will be a multi-million dollar organization once several current investments mature and become available.

Distributions from the foundation will come in the form of “Tommy May Make A Difference” grants, said Makris.

“We’ll go into communities we serve, find worthwhile organizations that have a specific project, and we will help fund that project. We’ll have our bankers across the state looking in their communities for those unique opportunities,” he added.

May has a storied history of community service during his bank tenure.

He has served on the University of Arkansas Foundation Board of Directors, the Dean’s Executive Advisory Board in the Sam M. Walton College of Business, the University of Arkansas Board of Advisors, the Steering Committee for the Campaign for the Twenty-First Century, and the Board of Trustees for the University of Arkansas System from 1993 to 2003.

May has also dedicated his time to organizations such as the Boys Club of America, Habitat for Humanity, United Way of Jefferson County and Southeast Arkansas, and the Pine Bluff Downtown Development. He also has served on the board of directors for Arkansas Blue Cross Blue Shield, Baptist Health and the Federal Reserve Bank of St. Louis.

He will have an office on the Simmons First campus in Pine Bluff. Makris said he’s looking forward to the proximity.

“I told him to expect the carpet to be worn out between my office and his because it will be,” he said.

While many Arkansans have come to know Greg Henderson’s work through his satirical news website Rock City Times, his next venture will be anything but a joke.

Henderson is set to launch Manufacturing Times, an online business-to-business publication, in early 2014, tapping into a vast network of contacts from his time in the manufacturing industry. He will use many of those contacts as contributors for the web venture, using his manufacturing and web savvy to launch the site and eventually branch out to provide training and consulting to manufacturers from across Arkansas.

“It’s sort of a two-part thing,” Henderson said. “On one hand, what we’re going to do is be almost like a Forbes of manufacturing. (We’ll) offer advice, offer stories that impact manufacturers, do some profiles of manufacturers who are doing things well.”

The other end of the trade publication will involve training of not only high-level executives, but also the men and women on the manufacturing floor.

“I’m going to start off making it online and then do a few local training sessions around the state, as well. So that’s going to be your basic manufacturing training, quality control, environmental training. So sort of the back end, on the floor-type of manufacturing training all the way up to (management consulting),” Henderson said. “I’m going to bring my marketing knowledge to it for marketing of floor manufacturers and do some of that higher-level CEO training, succession management, stuff like that.”

Having a background in manufacturing marketing, Henderson is hoping his experience taps into an industry that is seen by many as on the decline.

Consultant Allen Engstrom is chief executive officer of CFO Network. Engstrom said he is looking forward to taking his experience and partnering with Henderson as a contributor to Manufacturing Times.

“It’s easy to do, first of all. We’re very involved with manufacturing issues and we see a lot of things people are doing great and a lot of problems people are having and we try to leverage the things people are doing well and highlight areas needed for improvement and put them in one place,” he said. “For myself, if it means putting in some efforts to help somebody and also benefitting my business, then it’s a win-win for everybody involved.”

Henderson said the benefit many manufacturing consultants are likely to receive from contributing to his new site would be a high level of exposure to an industry in need of their services.

“A lot of these consultants, a lot of them are going to write for this very reason – they’re out there consulting in the field two or three days a week, at least. But what they don’t have time to do and what they don’t have expertise to do is market themselves. So outside of their own contacts, they really have a hard time getting their name out there. That’s just not their specialty. So in exchange for writing, what I want them to do is build some thought leadership for these people, get their name out there pretty regularly and help them market their services, as well,” he said.

Engstrom said he is looking forward to the high number of contacts he could reach through his contributions.

“It will introduce us to a new group of companies that we haven’t seen before,” he said. “There’s a lot of businesses there that we haven’t been in touch with.”

While manufacturing consultants will be contributing two or three stories per month, they will also lead training seminars both in person and online. Engstrom, whose business helps small to mid-sized businesses with accounting, said it is the specialized expertise that he and other consultants will bring to Manufacturing Times and its training sessions that will help the company carve out a niche in the increasingly competitive online media market.

“I think there’s a lot of opportunities there, things we learned along the way that would be easy to convert into a training course,” he said, again adding that contributing and providing training will help an industry that has shed almost 38% of its workforce since February 1995.

But as with any business, Henderson is aware that he will have to find multiple revenue streams to take his idea from a dream to a profitable business. He said there are plans for at least two other ways to monetize the site besides conducting training sessions.

“Yeah, of course there will be the training. And there’s probably some level of advertising. And I’ve had people say if we do webinars, they’d actually buy up some of those leads from the webinars. You know, buying a list of people who’ve attended a webinar if they agree to have their name given out. That’s a possible revenue stream.”

As with any new business, Henderson said the key to success would be remaining flexible.

“I’m really just going to go with this and see what happens. Luckily, this is not the first website I’ve set up, so I can keep money as lean and as tight as possible and do most of this on my own. If money opens up, then certainly I’ll expand things. But if it stays lean, then I’ll probably keep (the operation small),” he said.

First Data Corporation, a large electronic payments processing company, reports softer spending patterns among consumers so far this holiday season. The report released Wednesday (Dec. 11) found overall retail spending in November rose 1.3% from a year ago, but slid backwards from the 5.6% spending uptick in October.

November dollar volume growth of 4.4% marked a downtick from October’s growth of 6.8%. Although the cold and dry weather at the end of the month offered perfect holiday shopping climate, several portions of the country earlier in the month dealt with blasts of snow hindering shopper foot traffic. Transaction growth slipped in November to 4.8% compared to last month’s growth of 6.2%.

Retailers have pulled out all the stops to get consumers into their stores and sweetened the enticements to spur online shopping as well, offering free home delivery and Sunday delivery in some areas. First Data notes that spending growth was strong at 9% on Thanksgiving Thursday and Black Friday. Given there are fewer shopping days this year between Thanksgiving and Christmas, retailers took no chances and began offering deals early.

However, First Data found that retail spending growth cooled in November in spite of strong Black Friday turnout. Average ticket growth was down 0.3% in the month as retailers offered price discounts and gasoline price deflation took those receipts lower. One area that reported robust growth last month was travel and hotel merchants who cited 9% and 6.4% respective increases in receipts thanks to more consumers traveling for Thanksgiving.

“Although spending growth increased on a year-over-year basis, the growth slowed on a sequential basis as consumers were more modest in their purchases throughout the month as they prepared for the holiday shopping season,” said Krish Mantripragada, senior vice president for Information and Analytics Solutions at First Data. “We definitely see that consumers are more confident and have enjoyed stronger income growth in 2013 compared to 2012. This should encourage shoppers to open up their wallets as the holiday season progresses.”

Economists believe consumers are willing to hold out for the absolute best deals, which is why retailers like Wal-Mart and Best Buy have guaranteed shoppers the lowest price and will refund the difference in a gift card if the item can be bought cheaper in the next couple of weeks ahead of Christmas.

First Data reports that shoppers pulled back on retail spending for most of the month in anticipation of holiday deals at the end of November and they may continue to hold out for what they perceive as rock-bottom pricing.

Another report by IBIS World, a marketing research firm, expects consumer spending will end up 3.4% ahead of the 2012 holiday totals to a projected $68.9 billion. The report notes the government shutdown, sluggish income growth and sustained unemployment as the main threats to retailers reaching their sales goals this year. At the same time lower gasoline prices are helping to put a little more money in some pockets and a pullback in SNAP benefits is also being felt among lower income families.

IBIS World research expects gift expenses to generate $53.5 billion in sales, up 3.1% from a year ago, but note that fewer people will benefit. 
The trend this year is to shrink the circle as consumers pare down their list to a smaller group of friends and family, the firm predicts.


Two of the biggest gift giving categories are expected to be electronics (6.6% growth), driven by releases of new games and gadgets and jewelry expected to rise 7% from a year ago.
 Clothing and other apparel spending is expected to decline year-over-year, according to the report.


"Many consumers are opting for gatherings with close family and friends, particularly over food and drinks, instead of exchanging gifts with an extensive network," noted the company in a report.

About 111.7 million U.S. households will celebrate the holiday season this December, spending 3.9% more on average for a celebratory dinner than they did in 2012, IBIS World predicts. The firm also expects the holiday decoration segment to under perform the average holiday spending, growing only 2.9% from 2012 to less than $6 billion.

"Tight budgets and weak economic confidence are encouraging consumers to reuse decorations from previous years or make some themselves instead of buying new decorations," the report notes.

Even though uncertainty remains regarding the future of the Ben Geren Aquatics Center, the city of Fort Smith took another step forward Wednesday (Dec. 11) in order to provide additional funding for the project.

In a vote of 5-1, the Fort Smith Parks and Recreation Commission voted to recommend a change to the Parks and Recreation Department's Five Year Capital Improvement Program.

Included in 2014's Capital Improvement Plan, which is funded by an eighth-cent sales tax approved by voters last year, is $457,000 in funding for the Ben Geren Aquatics Center. That figure is the city's portion of the additional $800,000 outlined in an amended interlocal agreement to be voted on by the Board of Directors Tuesday night (Dec. 17).

The Sebastian County Quorum Court approved the measure Monday (Dec. 9) in a vote of 7-6, short of a supermajority required for the county to approve the amendment to the agreement. The Court will have to vote in favor of the amendment two more times in order to pass its measure.

The money was requested after estimates from the project's construction manager, Flintco, placed the project's design concepts at $11 million. Flintco, in coordination with designer Larkin Aquatics, has taken some amenities out of the water park's design in order to reduce cost estimate to $8.8 million, above the $8 million total the city of Fort Smith and Sebastian County had projected.

During the meeting today, Parks Director Mike Alsup said the previous estimates were based on outdated figures, which is why the amended interlocal agreement would need to be passed, using money from the Capital Improvement Program.

Parks and Recreation Commission Chair Lorie Robertson questioned whether the amended interlocal agreement would actually be the end of the requests for more money for the park.

"Is it a pretty fair assessment that this is not going to be $8 million? That we're going to be asked for (not just) the $450,000, but probably more and asking us to take it out of our money? We're looking at these estimates right now and we will be asked to carve out that additional funding."

Parks Commissioner Bryan Merry was the lone no-vote on the commission, saying that he did not want to make any recommendation to the Board of Directors until he saw for sure that the county would pass its portion of the additional funding and further stating that the city should not pony up any additional funding should the Board ultimately vote to approve the amended interlocal agreement, which itself is still in question. Merry is the son of Fort Smith City Director Philip Merry Jr.

"We should not give them any more than the $457,000," he said. "We have enough things that we can move forward in our plan rather than giving another (large sum of money)."

Asked by Robertson how confident the city was in the figures, he showed confidence in the figure presented to the public on Monday.

"We're confident of the $8.8 million. The construction manager has looked over that plan. The plan that we currently have can be built with the $8.8 million."

Merry made a motion to approve the amended Five Year Capital Improvement Plan without the additional funding for the Ben Geren Aquatic Center, though his motion failed.

Deputy City Administrator Jeff Dingman made clear to Merry that whether he liked it or not, the $8.8 million project would move forward should the Board approve the amended interlocal agreement.

"The Board of Directors will consider the amendment. The city (will be) committed to the $457,000, regardless of where it comes from."

The foreclosure pace across Arkansas remains mixed as 2013 winds to a close. There were 469 foreclosure filings across the Natural State in November, down 5.25% from the year-ago period, according to Irvine, Calif.-based RealtyTrac.

The number of foreclosure filings nationwide totaled 113,454, down 37% from November 2012.
 
“While some of the decrease in November can be attributed to seasonality, the depth and breadth of the decrease provides strong evidence that we are entering the ninth inning of this foreclosure crisis with the outcome all but guaranteed,” said Daren Blomquist, vice president at RealtyTrac. “While foreclosures will likely continue to stage a weak rally in certain markets next year as the last of the distress left over from the Great Recession is dealt with, it is highly unlikely that there will be a foreclosure comeback that poses any major threat to the solid housing recovery that has now taken hold."

Northwest Arkansas areas differed in their reporting last month with 66 new foreclosure filings in Benton County, up 11% from a year ago. In neighboring Washington County there were 26 new filings, a 53% decline from November 2013.

The Fort Smith metro area was also a mixed bag with 17 new foreclosure listings in November, up 13% from a year ago for Sebastian County. Crawford County reported 11 new foreclosure filings, down from 13 filings a year ago.

Local real estate agents report the number of new foreclosed properties coming back into the markets of Northwest Arkansas and the Fort Smith metro area have been fairly stable at 360 listings as of Wednesday (Dec. 11). Crye-Leike agent Jim Long said the new HUD listings are few and far between with a smattering of properties from Fannie Mae and Freddie Mac in the mix.

“We see a fairly large number of bank-owned properties on the market at this time. The listings range from $12,900 for one acre and an uninhabitable home, all the way up to two homes in Fayetteville listed at  $1.4 million,” Long said.

Last month Long reported there were 368 foreclosed homes listed for sale in the four counties included in this report. That number totaled 354 in September, down from 373 in August.

Foreclosure listings peaked at 393 in July, rising from 222 in March of this year. The listings have slowed a bit, according to Long, who said the clean, well-kept properties are still selling fast, as investors and cash buyers are back in the market.

RISING REDEFAULTS
Roughly 967,000 distressed homeowners took advantage of federal programs to obtain mortgage loan modifications intended to stem foreclosures since 2009. But the most recent report from the Inspector General indicates that nearly half of those mortgages modified in the Home Affordable Modification Program (HAMP) are back in default.

The HAMP initiative has helped about 888,394 homeowners avoid foreclosure through permanent modifications since it began, but 337,854 had redefaulted by the end of September, according to the most recent government report. The Obama Administration has made multiple attempts to fix the program, including expanding the requirements for participation, paying investors more for principal reductions, and extending deadlines.

When it was first initiated, officials estimated that it would reach as many as 4 million homeowners, but closer to just 900,000 have been helped. And more than 1 million borrowers have been bounced out of the program either thanks to redefaulting after failing to make the first three payments during the trial process, failing to qualify, or for failing to finish a three-month trial.

In Northwest Arkansas the report indicated there had been 1,035 permanent modifications, with a redefault rate of 29%. The Fort Smith metro area reported 175 permanent modifications with a redefault rate of 23%. Nationwide the redefault rate has been 27%.

The Treasury reports homeowners with redefaulted loans serviced by the 8 largest mortgage companies have had mixed results since falling out of HAMP. As of Sept. 1, about one-third of borrowers were able to secure an alternative modification, usually a private sector modification. About 22% of the redefaulted loans have moved into foreclosure and 13% lost their homes through deed-in-lieu of foreclosure proceedings or short sales.

The early start of winter usually signals seasonal slumber for the local real estate market, but despite softer overall sales in November a few agents are celebrating a record year.

MountData.com reports 461 Benton and Washington county home sales in November, down 4.5% from the same month last year. In Benton County agents sold 292 homes valued at $49.835 million. The number of units sold dropped 9%, while sales volume decreased 15.7% from November 2012. In Washington County sales rose slightly during November with 169 units valued at $30.853 million. This market rose 4% from a year ago.

Coldwell Banker, the largest local real estate firm, reported unit sales rose 12% in November, while total sales volume was up just 1%.

“We continue to write a great deal of new business, although that has decreased somewhat since September, which would account for the pullback in closed business in both October and November. Some of that decrease is seasonal, and some is due to the tremendous amount of business we did in the April to August period,” said George Faucette, CEO of the local Coldwell Banker franchise.

Harold Crye, CEO of Crye-Leike Real Estate, reports his firm bucked the downward trend last month with total sales volume rising 8% from a year ago, selling 177 homes across Benton and Washington counties.

“November was my best month in five years,” said Helen Dansker, Crye-Leike agent in Bella Vista.

QUICK SALE
Dansker recently listed a home in Bella Vista that went under contract at the first showing.

“It had been listed four days and the first couple to see it made a $244,000 cash offer on the spot. It happened so fast it totally caught the sellers off guard. These buyers were locating to Northwest Arkansas from Texas and wanted a quick closing,” Dankser said.

The buyers and sellers agreed to a quick closing with a delayed possession date. She said the sellers ended up renting the home from the buyers for one month while they shopped for another house.

“These sellers were able to find a smaller home that they liked in the same general neighborhood within a few days, but they had planned to have a large family gathering at Thanksgiving with several out-of-town guests and moving during that time just wasn’t feasible,” Dansker said.

WHAT’S NEXT
Nicky Dou, executive broker with Keller Williams in Fayetteville, said the snow and ice in recent days has not slowed her business.

“I have put two homes under contract this week. One of the subdivisions that I represent, Hyde Park, has had tremendous activity in the past two months with both pre-sales and existing homes. I also have four homes waiting for the snow to melt so that I can go list them. In short, the sales climate is hot unlike the weather in Northwest Arkansas,” Dou said.

She said prices have been steady in recent months, but predicts new home prices will rise in 2014.

“Buyers still think they can get good deals but it is harder and harder to find the fire sales and so I am trying to educate both buyers and sellers alike. For sellers, pricing correctly is key along with property marketing, good photography, etc.,” Dou said.

Faucette is also optimistic for 2014 citing the increase in new construction which should maintain the balance in the supply and demand of homes and help to keep overall pricing of homes from getting out of hand.

“We are seeing substantially fewer foreclosures and that segment of the market will continue to ameliorate over the next 18 to 24 months,” he added.

Dansker also looks forward to 2014 despite the cautionary concerns of a still somewhat sluggish overall national economy.

Mortgage applications declined each week during November, but turned positive to start December with a modest 1% increase for home purchases, according to Mortgage Bankers Association. The Mortgage Bankers Association estimates that the full-year 2013 purchase mortgage volume will be up 11% year over year.

Bankrate reported Thursday (Dec. 12) that mortgage rates have held steady, with the 30-year fixed mortgage at 4.55%, unchanged from the previous week. The 15-year fixed rate was 3.6%, down slightly from 3.62% in the previous week.

RECORD YEAR

Dou said 2013 has been a good year doubling her production from 2012, after holding her income steady between 2011 and 2012.

Through 11 months of 2013, MountData reports 6,667 home sales in the two county area. Unit sales are up 17.3% from the same period last year. Total sales volume has exceeded $1.21 billion so far this year, up 22% from 2012.

Faucette, said through November his firm has seen sales volume rise 20% with 18% more units sold than last year’s time period.

Crye-Leike reports similar local numbers year to date with a 15% rise in the number of units sold this year. Total sales volume for the local Crye-Leike market totaled $353 million at the end of November, rising 17% from a year ago, according to Crye. He said his entire firm is on pace for another great year with $4.78 billion in sales through November, up 16% from 2012.

The rise is total sales volume has been boosted by rising prices throughout this year, but most agents expect to see home price appreciations begin to level off at around 3% annually in the local market.

If the Northwest Arkansas market tracks with the national market, 2014 could be another good year. Fitch Ratings reported Thursday a positive outlook for the U.S. housing sector in 2014, based on its view that the year would see “a slowly expanding economy.” The expansion could help maintain prices and consumer confidence.

“Home prices are likely to increase by 2.5%-3.5% next year with employment showing gains and consumer confidence likely to improve,” Fitch Managing Director Robert Curran said in the statement, adding that sales should benefit from new inventory.

MEDIAN PRICES
So far this year median sales prices have risen to $150,000 in Benton County, which is roughly $82.20 a square foot. One year ago the median price stood at $145,000 or $77.70 per square foot, according to MountData.com.

Washington County reports a median sales price of $148,000 or $85.70 per square foot. This compares to $139,000 or $81.40 per square foot one year ago. In the past two years median prices have risen 25% in Benton County while they climbed 23.9% in Washington County.

Market analysts said smaller inventory levels of new and existing homes and fewer distressed property listing comparisons are helping to fuel the price increase.

Home builders told The City Wire in recent months that 2014 would bring higher new home prices as land prices rise with new development and they continue to see higher material costs.

Progress is being made on projects funded by a collection of sales taxes approved by Van Buren voters last year, though not all the progress can be seen by the naked eye.

According to Mayor Bob Freeman, the projects funded by the 1 cent sales tax are moving forward, with some projects expecting completion dates as soon as next year.

FIRE DEPARTMENT
The city's fourth fire station is under construction right now along Northridge Drive East, Freeman said, with an estimated completion date of May 2014.

The station, which cost $2.2 million to build, will house six firefighters and firefighting apparatus already purchased by the city, including a new pumper truck, he said. In addition to the six firefighters and pumper truck, Freeman said more staff and equipment is likely to arrive.

"The minimum is three (firefighters) per shift. We had hired six. That gives us our minimum. We want to hire three more in case someone's sick or whatever it may be. But right now we have our minimum staffing in place," he said, adding that the city had also submitted a grant application on Sept. 3 to the Assistance to Firefighters Assistance Program for a new ladder truck.

"The cost of the apparatus is $895,000. We are asking for the federal share of basically $650,000,” he explained.

Even though there is no word on when the grant could be approved, Freeman said the station will be ready to go with the city's current set of tools and equipment.

POLICE DEPARTMENT
Progress on the city's new police department has not been visible other than a sign in front of the empty lot where the new building will stand, identifying it as a project funded by the 2012 sales tax election. But that does not mean work has not been taking place on the sorely needed facility, which is budgeted to cost $3.3 million.

According to Freeman, there have been changes to the design of the department to allow room for growth in future years, something the city has not been able to do with its existing police department. The changes include utilizing space at the back of the lot previously occupied by a mower shop for an evidence room instead of housing it in the main structure of the police department.

"The primary reason for (housing it) there and not incorporating it into the main building is once built, we have to live with it for a major period of time without doing any construction. You're stuck with what you have. By putting it out in the other location, which is concrete reinforced, gives us capability now to have this new police station for the next 20 to 30 years as its built and the ability to expand it. Those costs will start to come in and I believe once they do, we'll be able to manage it."

With initial design work completed on the new facility, Freeman expects bids from subcontractors on the project to come in by January with a possible groundbreaking by February 2014.

SENIOR CENTER
The Senior Citizens Center, which was billed as the only project to be LEED-certified, is over its $2.8 million budget, with Freeman looking for ways to reduce the overage by $300,000 to $400,000.

"We got initial projections of cost on it," he said. "It was somewhat higher than we originally expected it to be. We are doing value engineering on it (in places) where we can make changes, not compromising size or quality."

As for where those funds will come from, the mayor said it would likely come from reserve funds the city had not spent from the current year's budget.

"We could take it out of the general fund because we are showing a surplus. We can take it out from this year, maybe next year and capital improvement funds," he said. "Once we get numbers in and get the city council approves it, we can break ground real soon."

PARKS AND RECREATION
The biggest unknown with the sales tax projects at this point is what will happen with the parks and recreation funding.

Already, projects at the tennis courts have been completed which added new lighting, landscaping and other amenities. The city has also completed new softball fields and added new restrooms and concessions at the Field of Dreams facility on the west side of town.

But other projects are still to be determined, such as what the city will do with land acquired for a new citizens park or land donated for a wilderness park in far northwest Van Buren. For that, the city is hiring an expert to help with the planning.

"After the first of the year, we'll advertise for help from a consultant to help us work on a parks master plan and that will, I envision look at parks throughout the city – parks in place and other pieces of property. What are the other places to need to fall into place? Not just in one year, but five years, 10 years, or 20 years? Here's what we want to do and now let's look at specifics."

Freeman said the process will "start looking at the big picture and zoom into smaller pictures."

Even though a master plan is still far off, the city is working to add to its park infrastructure after signing a lease with the U.S. Army Corps of Engineers for Lee Creek Park, which the city has partnered with Jobs Corps for cleanup and installation of picnic tables and possibly other amenities such as grills and fishing areas.

The mayor says while it may seem like the projects are taking a long time to get off the ground, he is a firm believer in making sure all projects are planned out and completed correctly instead of just jumping into projects without proper planning.

"I wish things would work faster and there wouldn't ever be a hiccup, but that's not how life is," he said. "I think planning and getting the right plan together is critical. Yeah, would I like to see the police station under construction now? Sure. But you have to put time into planning to make sure it's the right thing instead of just jumping at it and later saying I wish we would have done this."

With more than 35 years of medical practice to his credit, Dr. Jerry Jones at Arkansas Children’s Hospital has seen things. As one of less than 20 physicians in the country board certified in Child Maltreatment, most of what he’s seen are cases no one ever wants to see.

“Child abuse cannot hide under the covers,” said Jones. “It’s not just a social problem or a medical problem or a public health problem. It’s a community problem and a legal problem and a business problem. No one group has a lock on this issue.”

The numbers around abuse in Arkansas are enough to turn anyone’s stomach. Roughly 11,000 cases of abuse were reported in Arkansas in 2011, the most recent year statistics are available. Experts estimate for every case that is reported, there are two unreported cases. According to the National Child Protection Training Center, abuse will cost the state of Arkansas $362 million over the lifetime of the children whose cases of abuse were confirmed in 2011. The cost would be higher, but children who are abused typically die 10-20 years sooner than counterparts who were not abused.

The $362 million represents:
• $25.29 million for acute medical treatment
• 29.97 million for mental health treatment
• $219.36 million for the child welfare system
• $272,416 for law enforcement costs
• $1.22 million for special education
• $4.20 million for early intervention programs
• $6.25 million for emergency/transitional housing
• $3.15 million for mental health and health care
• $25.16 million for juvenile delinquency
• $47.19 million for lost worker productivity

“Because of the cyclical nature of abuse, it’s not just one family that ends up disorganized, but many families are disorganized,” Jones explained. “But the thing is, we know how to break the cycle.”

However, knowing what to do and being able to fund it are two different things. That’s where the Quinn family and Heartland Bank entered the picture. Together, they will donate $1 million over the next five years to build a new Children’s House on the campus of Arkansas Children’s Hospital. The facility, when complete, will house physicians, counselors, trained interviewers, crisis interventionists, law enforcement officials and child advocates. The center will also serve as a training facility for child abuse professionals across the state.

“Over the past few years, we’ve been getting requests to support any number of causes,” said Walter Quinn, Partner and CEO of Rock Financial Partners, the holding company for Heartland Bank. “We didn’t want to give $100 here and there. We wanted to give a substantial gift to something that would make a difference in our community. This was it.”

Terry Quinn has been part of the ACH Auxiliary for many years. She’s seen first hand how the hospital is run and what a difference it makes in the lives of families across the state.

“It’s past time for people to stop saying, ‘Oh those poor abused children,’ and moving on. We need to do something about it. Getting the business community involved in this allows companies to recognize that they have people on the payroll who are hurting and need help, so we’re going to provide it,” she said.

The $6 million plan for Children’s House will move all of the services currently available for abuse recovery under one roof. Currently, if a child presents in a clinic or the emergency room or is reported through the child abuse hotline, the medical and mental health services they need are in three different buildings scattered around the ACH campus. Many people don’t complete recovery services, in part, because the process becomes too arduous to handle.

“Right now, it’s hard to coordinate treatment because all the different departments because they’re predominantly working in silos that don’t integrate well,” explained Jones. “We’ve got to change the mindset to change the outcomes.”

When the Heartland Bank and Quinn family gift was announced, Walter Quinn said an employee who was visibly emotional told him that she had experienced abuse in her family as a child. She plans to volunteer at Children’s House once it’s built.

This is an example of what the Quinns call the “power of philanthropy.” When other companies and business owners heard about their gift, they began to make pledges too.

Rebecca Rice and Associates recently pledged $1.1 million for the project and the Children’s Hospital Auxiliary pledged $1.5 million. The Quinns believe people in the state trust the vetting process they use for foundation gifts and want to “be a part of something good.”

“You can call it social issue, but that’s not all it is,” said Richard O’Brien, president and CEO of Heartland Bank. “It’s people who come to work every day, but they can’t do their jobs effectively because they’re worrying about their child or their sister or any number of situations. It needs to be acknowledged, and business needs to get behind a solution. Otherwise it’s a recipe for disaster.”

Dr. Jones warns that short-term success may not look like it strictly by the numbers.
As more families get help and education, more families will start to report behavior they may not have previously understood to be abuse, such as hitting or slapping a child.

Mothers with PTSD from an abusive situation will learn they don’t have to live with that anymore and seek help. The fear of upsetting extending family members by reporting abuse will ease enough to allow for follow-up counseling for children after their physical wounds have healed.

“Ultimately, our goal remains what it has always been,” said Jones, “for every family to leave here better than they arrived.”

Roughly one year behind schedule, Kunal Mody, CEO of Little Rock-based Reimagine Hospitality, said the Sheraton Four Points Hotel should open along Walton Boulevard in Bentonville sometime in early 2014 – that is if prolonged inclement weather does not get in the way.

“We have taken our time to get this right, carefully shopping the brand and working closely with our lender, Signature Bank, to make sure this new hotel not only meets, but exceeds expectations among business travelers to the Bentonville area,” Mody said during an a phone interview on Thursday (Dec. 12).

The new hotel will be located at the former Clarion site near Rainbow Curve in Bentonville. Joe’s Italian is set to open in the former Boston Pizza restaurant space attached to the hotel. Permits with Arkansas Health Department have already been filed for the restaurant. Mody said the restaurant should open about one month ahead of the hotel, likely in late January or early February.

“They are waiting on us at this point and there is still more construction to complete on the hotel side,” Mody said. “We are in the process of splitting the gas and water lines from the hotel to the restaurant so Joe’s can proceed with their opening.

He said the construction team is adding about 3,000 additional square feet of meeting space, a needed commodity in Bentonville. The former Clarion Hotel had roughly 26,000 square feet of convention space, which was the largest meeting area in Bentonville when it closed in September 2011, according to Kalene Griffith, CEO of the Bentonville Convention and Visitor’s Bureau.

Mody is not sure exactly how much meeting space will be available because the construction plan includes turning some of the open atrium area into meeting space. He said there is a full bar renovation and expansion as well as a lobby overhaul still yet to be completed.

The new hotel will have roughly 105 rooms in addition to the meeting space. Mody said Sheraton Four Points is a cross between Courtyard by Marriott and Hilton Garden Inn, which cater to the business traveler seeking comfort, functionality with modern decor.

“We know this location at 211 S.E. Walton is golden, given it’s proximity to Wal-Mart’s Home Office and the Sheraton Four Points should be a good fit for Bentonville. It’s a strong brand and part of the Starwood Property network. The Aloft Hotel in Rogers is the only other Starwood property in the local area,” he said.

A total hotel transformation takes time and Mody said he consulted with Sam Alley, co-owner of the Chancellor Hotel in downtown Fayetteville, who knows a thing or two about a massive hotel renovation.

“We consulted with Sam Alley’s firm VCC Construction and we are using Crossland Construction to do the work locally. We use local contractors and service providers  so that the community of Bentonville benefits from this project each step of the way. Our lender, Signature Bank, has also been a great partner in the planning phase as well as providing the necessary funds,” Mody said.

He declined to give the project costs at this time.

Third-quarter 2013 banking and other economic data released Thursday (Dec. 12) by the Federal Deposit Insurance Corp. (FDIC) show improvements in the state’s banking sector and continued signs of muted economic growth.

The quarterly FDIC state profile shows total nonfarm employment up 1%, an improvement over a 0.1% gain for the same period in 2012. For all of 2012, non-farm employment was up just 0.6% compared to 2011, and 2011 non-farm employment was up just 0.6% compared to 2010.

The average jobless rate in Arkansas during the quarter was 7.4%. Arkansas’ jobless rate in October was 7.5%, below the national rate of 7.3% in October. Arkansas' unemployment rate was lower than the national average for five years, with the trend reversing in 2013.

In other indicators, the number of single-family home permits issued statewide during the third quarter were up 5.8% and apartment and duplex permits were down 72.8%. Permits were up 35.7% and multi-family permits were up 137.5% in the third quarter of 2012.

The home price index was 1.4% in the third quarter, compared to a 0.9% increase in the third quarter of 2012 and a 0.7% increase during all of 2012.

The number of banking institutions in Arkansas in the third quarter was 126, unchanged from the third quarter of 2012 and unchanged from all of 2012. Total assets of the 126 banks grew to $62.298 billion in the third quarter from $60.505 billion in the third quarter of 2012 and from $61.289 billion for all of 2012.

Loan quality, which has been a persistent problem for many Arkansas banks, has improved in recent years. The ratio of past due and non-accrual loans to total loans was 2.4 in the third quarter of 2013, down from 2.97 in the third quarter of 2012. In all of 2012, the ratio was 2.93, down from the 3.17 in 2011.

Arkansas banks also are performing better well on the key metric of return on assets. The ROA average all 126 banks during the quarter was 1.01, just off the 1.05 during the third quarter of 2012, but better than the 0.98 in all of 2012.

Arkansas bank execs have approved more loan activity in recent years. The net loan to assets ratio was 59.92 in the quarter, higher than the 59.71 in the 2012 quarter. For all of 2012, the ratio was 57.03.

Arkansas’ top five largest deposit markets by metro area, based on June 2013 summary of deposits are:
• Memphis Tenn.-Miss.-Ark.: $23.519 billion, 60 banks in the market
• Little Rock-North Little Rock-Conway: $14.238 billion, 37 banks in the market
• Fayetteville-Springdale-Rogers: $8.277 billion, 38 banks in the market
• Fort Smith: $4.058 billion, 22 banks in the market
• Jonesboro: $2.791 billion, 19 banks in the market