Sales of homes in the Fort Smith region showed mixed results in November, with Crawford County beating November 2012's figures by 76.46% while Sebastian County's home sales figures dropped 25.98% for the same period.

In Crawford County, 50 homes were sold last month, showing a sales volume of $5.74 million, an increase from the same month last year when only 31 homes were sold for a sales volume of $3.253 million.

Sebastian County posted the sale of 72 homes valuing $9.546 million, down considerably from last year's 105 homes sold for a collective $12.896 million.

According to Betty Lyles, managing broker at Chuck Fawcett Realty's Van Buren office, Crawford County's drastic increase in home sales could be tied to Van Buren's upcoming loss of rural development loans, which allow some buyers to purchase homes with no money down and low closing costs.

"That's probably got a lot to do with it – trying to get in at the tail end of (the rural development loan). If you're not already in the pipeline, you won't get in."

The loans, Lyles said, will no longer be available to first-time buyers in the Van Buren market due to the city's estimated population now standing at more than 25,000. Should the Farm Bill be renewed, Van Buren would be among the cities to continue eligibility through the year 2020 based on population estimates. The bill would also raise the population limit defining a rural community to 35,000.

Besides rural development loans, Lyles said other drivers in the sales boom in Crawford County last month have been an influx of residents making a living in the medical field and buyers looking to get low interest rates before they go higher.

"The 3.5% (interest rates) are gone and I think it has scared people," she said. "But rates are still good. 4.5% is a good rate, but the 3.5% is probably going to be gone for good now."

But even with the surge in sales last month, Crawford County is still showing a decline in home sales for 2013 of 5.13%, while Sebastian County is showing an increase of 9.4% in year-to-date sales figures over 2012.

A contributing factor in Crawford County's decline, according to Lyles, is the number of higher-priced homes that aren't moving.

"You get up into the $300,000 range and it's really hard (to sell), unless someone specifically has the money to do it. It's just hard to move homes in that price range."

Average sale prices for 2013 reflect Lyle's claim, with Crawford County's average sale price at $111,816, a decrease from 2012's figure of $119,127, while Sebastian County's average sale price was $137,532 compared to $137,716 for the same month last year.

Overall, she said 2014 could be a good year for the housing market if other external factors work in the region's favor.

"If the overall economy straightens out a bit, I think that will help us," Lyles said. "But our area ... Arkansas has always been at the tail end of everything. And we've also had a lot of foreclosures and short sales, which has affected the market. But as those start going away, I think the market will start getting better."

Home Sales Data (January-November)
• Crawford County
Unit Sales
2013: 471
2012: 466

Total Sales Volume
2013: $52.665 million
2012: $55.513 million

Median Sales Price
2013: $106,250
2012: $112,000

• Sebastian County
Unit Sales
2013: 1,125
2012: 1,027

Total Sales Volume
2013: $154.724 million
2012: $141.434 million

Median Sales Price
2013: $115,000
2012: $118,000

More than 200 health professionals, local residents and city leaders attended the grand opening celebration of the new $13 million Mercy Clinic in Bella Vista on Thursday evening (Dec. 12).

The 32,950 square-foot facility houses about 75 Mercy workers who will staff the new clinic located at 1 Mercy Way, roughly two blocks east of U.S. 71 at Dartmoor Street.

It’s been more than a year in the making since Melba Shewmaker and her family donated $1.5 million to the project, a gift announced at the groundbreaking in the fall of 2012. The Shewmaker family attended Thursday’s event and received a special thanks from Lynn Britton, CEO of Mercy Health System.

“Jack Shewmaker and I visited all of the Mercy Hospitals during his board tenure and in every rural town we visited he always knew someone,” Britton told the group. “The Shewmaker family has been a great friend and partner with Mercy for many years.”

The new clinic opened earlier this week and offers multiple specialties including a pediatric center, family medicine, internal medicine and cardiology. An emergency room is slated for completion at a later date. The Mercy Life Line Air Medical Service will be available from the Rogers Hospital location to the Bella Vista Clinic on Feb. 1, according to Chris Mattes, emergency services network coordinator for the Mercy system.

“Mercy’s goal is to enhance health care in Bella Vista by bringing care directly to their community,” said Dr. Steve Goss, Mercy clinic president. “We are committed to the communities we serve and addressing their specific needs in as convenient a way as possible.”

The building is designed with patient convenience in mind.

“For instance, knowing parents often have their hands full, we positioned our pediatric wing at the south entrance for quick and convenient access,” said Goss. “We also have a special sick child waiting area, and all of the toys are designed with the kids’ health in mind.”

The $13 million campus also is designed to be a reflection of the community. From the smell of fresh brew rising in Callahan’s coffee shop onsite, to the local Cornerstone Pharmacy tucked away just adjacent to the community room, the facility includes many intentional community details.

“Where do people feel most comfortable? In their own hometown,” said Tina Brown, lead project manager at Mercy. “We learned that although patients want privacy, they also want to feel they are in an open environment. This led us to use frosted glass doors between waiting areas and doctor patient areas. These small adjustments go a long way in patients being more relaxed and feeling at home.”

Britton said the clinic was fashioned in a new design that is being rolled out systemwide in the future. The clinic also offers several radiology services including CT scans, echo and ultra sound. x-rays with plans to add MRI scans at some time the future.

Mercy officials also announced a $40,000 grant they just received from General Mills to construct a community garden and outdoor classroom on the clinic grounds in Bella Vista, located across the street from Cooper Elementary. This community garden is a partnership between Mercy, Cooper Elementary, General Mills and the University of Arkansas Master Gardeners. The project is slated from completion in 2014.

The evening was capped off with Christmas carols sung by a small choir from Cooper Elementary, live instrumental music was provided by the Adams Garrett duo and Callahan’s served up meat and cheese, sandwich trays with wine beer, coffee and hot chocolate.

An audit of the office of Lt. Gov. Mark Darr (R) found that the state’s highest ranking Republican apparently misspent more than $12,000 in office funds for personal or undocumented expenses.

The Legislative Audit Committee conducted its annual audit of the office and found a number of questionable expenses, some of which had already been addressed by Darr.

The report noted:
• The Lieutenant Governor charged $2,339 on a state credit card for personal expenses. Of this amount, the Lieutenant Governor has reimbursed $1,202 to the State. Although the Lieutenant Governor submitted a copy of a check dated July 1, 2012, for $1,137 to reimburse the State, a credit for this amount could not be located on the credit card statements. Personal expenses of $1,137 have not been reimbursed as of the date of this report.

• Based on a review of travel expenses from January 2011 through September 2013, [the following] transactions totaling $9,836 appear to violate state travel regulations. Of this amount, $9,298 was not reported as income on the Lieutenant Governor’s IRS Form W-2.

• Unallowed uses of state funds – $205 for lodging within the official station. According to credit card receipts, the Lieutenant Governor paid for lodging in Little Rock with state funds on two occasions, although regulations do not allow for payment of lodging expense within the official station.

• Supporting documentation for expenditures of $2,755 was not maintained, based on review of travel reimbursement forms and state travel card statements.

The report concluded that Darr should pay nearly $10,000 back to the office.

“The Lieutenant Governor should reimburse the State $9,836 for excess travel reimbursements and expenses. In addition, the Lieutenant Governor should comply with, and obtain staff training in, all applicable state laws and regulations and follow IRS regulations for reporting taxable fringe benefits,” the report stated.

Darr provided a written response to the audit report, claiming that he had not been cited for errors previously and he seemed to blame the office of State Auditor Charlie Daniels for not stopping errors from occurring.

“[H]aving served in office for almost three years with no findings related to travel reimbursement, we had no reason to believe we were not doing things properly,” Darr said. “The Arkansas State Auditor’s Office is in charge of reviewing and paying all travel reimbursement requests and office expenses. If at any time the Auditor’s Office had a question in regards to a travel reimbursement form, or any other office expense, we promptly provided the necessary documentation. I acknowledge the errors I have committed, and I am endeavoring to make full restitution.”

The report was forwarded to Pulaski County Prosecuting Attorney Larry Jegley for review of possible criminal violations.

Earlier this year, Darr had announced for the Fourth Congressional District race.  He withdrew after reports of misspending of office funds and campaign funds were reported by the Blue Hog Report blog.

An ethics investigation of Darr’s campaign finances is still underway.

The pace of housing growth, Obamacare jobs in Rogers and the possibility of a Walmart store on an Ivy League campus are part of the Northwest Arkansas Friday Wire for Dec. 13.

NOTES & ANALYSIS
• International intrigue
Wal-Mart officials have moved fast to create leadership certainty in the retailer’s international division. Just two weeks after saying Walmart International President and CEO Doug McMillon would be the next Wal-Mart Stores President and CEO beginning Feb. 1, the company named David Cheesewright to replace McMillon in the international top spot.

The international division will need stable leadership and a smooth transition to best deal with expected fallout from the Foreign Corrupt Practices Act investigation into Wal-Mart’s international operations. Bribery allegations within the division were first made public in the April 2012.

• Top of the trend?
Home sales in Northwest Arkansas have been impressive for most of 2013, with the number of sales and the prices moderating slightly toward the end of the year. Will that moderation continue into 2014?

If prices don’t moderate, the region will have supported three consecutive years of significant home price increases.

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.

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 ...

• Economic optimism, regulatory concerns
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 foreclosure pace
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.

• Kudos on downtown NWA support
It’s no secret that numerous changes in residential, commercial and traffic patterns during the past several decades have resulted in the decay – if not abandonment – of thousands of downtowns around the U.S.

NUMBERS ON THE WIRE
$1.211 billion: The value of the 6,667 homes that sold in Benton and Washington counties through 11 months of 2013, according to MountData.com. Sales rose 22% from $990 million a year ago.

29%: The redefault rate for homeowners in Northwest Arkansas who sought mortgage modifications to stem foreclosure since 2009. The national redefault rate is 27% as of Oct. 1.

18.2%: Estimated percentage of Arkansas high school students who smoke.

3.4%: Estimate by IBIS World of how much holiday sales will increase over 2012 levels.

OUTSIDE THE WIRE
• Attention for Rogers
Serco has set up four facilities to handle paper applications for Obamacare coverage. Paper forms are mailed to a facility in London, Kentucky, where they are converted to an electronic format and sent to offices in Wentzville, Missouri, Lawton, Oklahoma, and Rogers, a city of 57,000 in northwest Arkansas.

• Ivy League Walmart?
Wal-Mart Stores, which operates 11,098 locations around the world, has opened three locations on college campuses since 2011, according to company spokesperson Deisha Barnett. Ivy League students interviewed for this story overwhelmingly opposed the idea of a Walmart opening up at their schools.

• The first female CEO in the U.S. auto industry
On the brink of failure in late 2008, the U.S. auto industry begged Washington for help. Five years later the industry has been rebuilt and has named it’s first female CEO Mary Barra at General Motors, a second generation autoworker to rise from the factory floor to the executive suite.

WORD ON THE WIRE
“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.”
– Cameron Smith, CEO and founder of Rogers-based Cameron Smith Associates, on his expectations for the 2014 economy in Northwest Arkansas

“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.”
– Nicky Dou, executive broker with Keller Williams in Fayetteville, who said the snow and ice in recent days has not slowed her business

“Child abuse cannot hide under the covers. 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.”
– Dr. Jerry Jones, at Arkansas Children's Hospital, who is one of 20 board certified physicians in the U.S. on child maltreatment

Beautifying a major Fort Smith interchange, a big money push for the U.S. Marshals Museum and the hiccups of life are part of the Dec. 13 Friday Wire for the Fort Smith region.

NOTES & ANALYSIS
• Big gap to close
Those old enough to remember the Smokey and the Bandit movies probably remember the movie’s title soundtrack lyric, “We’ve got a long way to go, and a short time to get there ...”

The same could be said of the effort by U.S. Marshals Museum employees to secure $25 million in donations prior to a planned September 2014 groundbreaking for the museum to be located in downtown Fort Smith along the Arkansas River.

Museum President and CEO Jim 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.

• Finally!
A group in Fort Smith is finally working to beautify and maintain the Interstate 540-Rogers Avenue interchange in Fort Smith – possibly one of the highest profile crossroads in the city.

According to Nancy Smreker, president of Beautify Fort Smith, the group has raised about $90,000 in funding to transform the interchange into an area landscaped with more than 4,000 shrubs and more than 100 trees. There are numerous great volunteers and companies stepping up to help, and they are all to be saluted for the effort – which will include other locations. The City Wire will stay tuned to this promising effort.

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 ...

• Fort Smith area jobless rate ticks higher in October
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.

• Economic optimism, regulatory concerns
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 museum push
Jim Dunn said 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.

NUMBERS ON THE WIRE
$800,000: The amount of money the Sebastian County Quorum Court and the Fort Smith Board of Directors could jointly pour into the Ben Geren Aquatics Center above the already-committed $8 million should both approve an amended interlocal agreement for the project.

20,000: The number of Arkansas Valley Electric customers who lost power at the height of the Dec. 5 and Dec. 6 ice storm that blanketed the much of the Fort Smith region with more than a half-inch of ice.

18.2%: Estimated percentage of Arkansas high school students who smoke.

3.4%: Estimate by IBIS World of how much holiday sales will increase over 2012 levels.

OUTSIDE THE WIRE
• Obama’s Orwellian Image Control
The White House-based press corps was prohibited from photographing Mr. Obama on his first day at work in January 2009. Instead, a set of carefully vetted images was released. Since then the press has been allowed to photograph him alone in the Oval Office only twice: in 2009 and in 2010, both times when he was speaking on the phone. Pictures of him at work with his staff in the Oval Office — activities to which previous administrations routinely granted access — have never been allowed.

• The first female CEO in the U.S. auto industry
On the brink of failure in late 2008, the U.S. auto industry begged Washington for help. Five years later the industry has been rebuilt and has named it’s first female CEO Mary Barra at General Motors, a second generation autoworker to rise from the factory floor to the executive suite.

• Ivy League Walmart?
Wal-Mart Stores, which operates 11,098 locations around the world, has opened three locations on college campuses since 2011, according to company spokesperson Deisha Barnett. Ivy League students interviewed for this story overwhelmingly opposed the idea of a Walmart opening up at their schools.

WORD ON THE WIRE
“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.”
– Mike Callan, president of Fort Smith-based Arkansas Oklahoma Gas Corp., and chairman of the Arkansas State Chamber of Commerce Board of Directors, on his thoughts about economic conditions in 2014

"I wish things would work faster and there wouldn't ever be a hiccup, but that's not how life is. 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.”
– Van Buren Mayor Bob Freeman, explaining why more progress has not been made on projects to be built using funds from a 1% sales tax passed by voters in late 2012.

“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. 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.”
– Allen Engstrom, chief executive officer of CFO Network, explaining why he is partnering with web satirist Greg Henderson as a contributor to his new and completely serious web venture Manufacturing Times

Siloam Springs-based Allens Foods could soon be gobbled up by Seneca Foods Corporation as the New York-based fruit and vegetable manufacturer entered into an asset purchase agreement for $148 million on Tuesday (Dec. 17).

The deal would give Seneca essentially all of the operating assets of Allens Foods, subject to a working capital adjustment, plus the assumption of certain liabilities, according to the release. The transaction would take place through a court-supervised process under Section 363 of the U.S. Bankruptcy Code and is subject to an auction and bankruptcy court approval.

On Oct. 28, Allens filed a petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Western District of Arkansas. The purchase agreement will serve as the "stalking-horse bid" in the auction process.

Allens will seek bankruptcy court approval of Seneca's asset purchase agreement as the stalking horse bid and certain bid procedures at a hearing in the near future. The preliminary hearing for the bankruptcy scheduled for Dec. 16 was postponed until Jan. 17.

If Seneca is successful in its acquisition of these assets, they will fit with its long-term growth objective to expand the line of canned vegetable offerings to include sweet potatoes, southern vegetables, and broaden its offerings of dry beans and spinach.

Miller Buckfire & Co., LLC, a Stifel Company, is serving as the Seneca’s investment banker. Jaeckle Fleischmann & Mugel, LLP and Wright, Lindsey & Jennings LLP are serving as legal advisors.

SECOND TIME
This is not the first time these two food processors have tried to join hands. In July 2011 Seneca and Allens signed a memorandum of understanding in hopes of a merger of the two companies in an all stock transaction.

But after several months of due diligence by both parties the deal was terminated in September 2011. Seneca said it had hoped at that time that Allens would become a subsidiary of Seneca Foods, but no terms were ever disclosed.

Seneca Foods is the nation's largest processor of canned fruits and vegetables. The company reported weaker net earnings for the fiscal six months ended Sept. 28 of $8 million, this compared to $22.7 million for the same period in the prior year. However, net sales increased $20.1 million, or 3.7% to $568.8 million in the first six months of fiscal 2013.


SPINNING DOWN

In March 2012, Allens sold off four of its six frozen vegetable operations to the French company, Bonduelle Group.

Both companies called the deal a “win-win,” but no terms were released.

Then CEO Rick Allen, said at the time the move was consistent with a renewed focus on Allens core business. He expected then to expand in the areas it was most passionate about, canned Southern style vegetables.

Allens entered the frozen vegetable segment by acquiring the Birds Eye brand products in 2006.

The nominees for the 2014 Henry Awards have been announced, with several cities and groups from the Fort Smith and Northwest Arkansas areas making the list.

The celebration, which honors individuals who have made significant contributions to the tourism industry in Arkansas, will take place at the Governor’s Banquet on Tuesday, March 11, 2014. The award ceremony will mark the conclusion of the 40th Annual Arkansas Governor’s Conference on Tourism, being held at the John Q. Hammonds Convention Center in Rogers.

The Henry Awards honor Henri de Tonti, the 17th century explorer considered one of the first “Arkansas Travelers.” The Arkansas Department of Parks and Tourism recognizes outstanding efforts in eight categories each year.

The nominees:
The Media Support Award, presented to a distinguished individual or organization for extraordinary attention to and/or support of Arkansas’s tourism industry through the use of media:
• KY3 TV, Springfield, Mo.
• Paula Morell, North Little Rock
• Southwest Times Record, Fort Smith

The Bootstrap Award, presented to an individual, organization, or community that has achieved significant success “on a shoestring,” having limited means to work with, either in resources or finances.
• Altus Veterans Memorial
• Eureka Springs Historical Museum
• Miller’s Mud Mill, Dumas

The Arkansas Heritage Award, presented to an individual, organization, or community that has made a significant contribution toward the preservation of some aspect of Arkansas’s natural, cultural, or aesthetic legacy.
• Arkansas Historic Preservation Program, Little Rock
• Arkansas Inland Maritime Museum, North Little Rock
• Hot Springs Historic Baseball Trail

The Grand Old Classic Special Event Award, presented to a festival, fair, or other special celebration which has “stood the test of time” and become an established example to follow.
• Enchanted Land of Lights and Legends, Pine Bluff
• Frisco Festival, Rogers
• Old Fashioned Square Gathering, Ozark

The Outstanding Volunteer Service Award, presented to a community, individual, or organization that, through outstanding volunteer spirit, has made a substantial contribution to Arkansas’s tourism industry.
• Central Arkansas Master Naturalists, Little Rock
• Garland County Historical Society, Hot Springs
• Twyla Gill Wright, Batesville

The Community Tourism Development Award, presented to an individual or organization which has achieved substantial success in the enhancement of its local resources through imaginative and innovative development efforts.
• Eureka Springs Arts Council
• Fort Smith Convention and Visitors Bureau
• SoMa District, Little Rock

The Natural State Award, presented to a community, organization, special event, or attraction which “stands out in the crowd” because of its unique appeal, media coverage, creative approach, and/or enhancement of community pride, thus benefiting the state’s quality of life.
• Grant County Museum, Sheridan
• Terra Studios, Fayetteville
• Wakarusa Music Festival, Ozark

The Tourism Special Achievement Award, presented to an individual or organization that has contributed to the tourism industry through leadership “above and beyond” the normal requirements of their jobs.
• Andy Thomas, Russellville
• Joe Harper, Heber Springs
• The Johnny Cash Music Festival, Jonesboro

During the ceremony, the Tourism Person of the Year will be announced, along with inductees into the Arkansas Tourism Hall of Fame. Selected by former honorees, the Tourism Person of the Year award is presented annually to an individual who has been actively involved in tourism and who has made a substantial contribution, within the past year, to the industry as a whole. Individuals who have been actively involved in tourism for many years and who have made sizeable contributions to the betterment of the industry are considered for induction into the Arkansas Tourism Hall of Fame.

In an age of computerized inventories and modern technology that are a part of nearly all businesses, one Fort Smith hardware store is bucking the trend with a pencil and some paper.

Walrod's Hardware, located at the intersection of Midland Boulevard and Division, has been a staple of the community since 1987, when owner Jerry Walrod set up shop at the store's original location at Fresno and Jenny Lind.

The original Walrod's Hardware stood at that intersection from Oct. 1, 1987, until Sept. 13, 1992, when Walrod said the building owner wanted to tear the building down and allow a grocery store to be built at the back of the property, meaning he had to move and move quick.

"I had 15 adult volunteers, I had three kids, two ladies that worked for me part-time and a blind man and I told him he couldn't drive the truck. I told him I already had a truck driver," he said with a grin.

The merchandise was all moved in one day, establishing Walrod's as the north side's neighborhood hardware store for the last 21 years.

EXPERIENCE BENEFIT
And in those more than two decades, Walrod has established his store as not only the go-to place for anything a customer may want or need, but he has also established his store as the place to go when a customer is seeking knowledge and experience. Walrod said it is not a slight to his competitors, but instead points to his knowledge versus that of possibly younger and more inexperienced staffers at other hardware stores.

"Customers should be assured of finding some quality merchandise and definitely some help that they can utilize," he said. "A lot of the stores that they go to today – a lot of them are younger folks. They just don't have the experience yet and you end up being discouraged because you can't get any real help."

Walrod said customers have come to respect not only the level of knowledge he brings to the store, but also that of his one full-time employee, C.J. Blair.

"CJ's been with me 17 years and I mean, I'm not afraid to leave him here by himself and do frequently."

Blair, who came to work for Walrod during his senior year of high school, explained that it's not only knowledge that customers seek from him and Walrod, but also follow-through.

"When we start with a customer, we stay with them. We get them what they want. We get them in and get them out, you know?"

Walrod and Blair know where every hammer, wrench and screw are located in their store by heart and keep the store's books by hand, itself an impressive feat.

"We pretty well know when we've got to have something," Walrod said. "When I forget something, he (Blair) remembers. If he forgets, I remember. It just seems like we play off of each other all the time. No, it's not a computerized system. …I had a computerized system when I first started and it seemed that with the amount of customers I had at the time, I was wasting a lot of time and paperwork."

SYSTEM CHANGES
And while Walrod's system may have simplified the inventory and accounting for the store, it has become more and more of a challenge when he attempts to place orders with his various suppliers, the largest of which is True Value.

"What I'm having trouble with now is my suppliers are high tech. I'm low tech. And my suppliers are saying the computers are telling them no, we don't need to stock this item any more because it's not selling well, it's not making us money. So it is making it more difficult for me to obtain merchandise."

But it is becoming increasingly harder for small mom and pop outfits like Walrod's to keep up in the digital age and the age of big retail.

A September 2013 report from IBISWorld says the U.S. hardware market is a $22 billion  industry, with an estimated 16,386 businesses and more than 140,000 employees.

And while IBIS says the recovering national housing market will boost business for hardware stores, consumers are turning more toward the big-box outlets.

“The industry will continue to face challenges, despite an improving economy. Competition from big-box home improvement stores will threaten operators, with consumers choosing to make purchases from stores that offer a large variety of products and convenience,” noted the IBIS report.

The report also notes that no single company has more than 5% of the U.S. marketshare.

‘AIN’T NO MUSEUM’
For the uninitiated, Walrod's may look like a store with a lot of merchandise and even more memorabilia, stacked in every nook and cranny imaginable. But Walrod himself pointed to a sign in his store that reads "This ain't no museum. Everything's for sale."

And everything means everything.

"And I have in fact had to sell a few things because I've got that sign up there that I had really intended to keep. But it's been good and people enjoy it."

With so much merchandise placed in every free spot in the store, it can be a challenge to navigate the narrow aisles. But Walrod said there is no safety problem, having passed fire inspection each year, though he admits the fire department will just let the store burn should it catch fire.

"I try to follow the rules. You've got to have your fire extinguishers where they will work. I have been told by the fire department, though, that if this place ever catches on fire, they're just going to shoot water at it. They're not coming in because it is so tight. If something catches on fire, it can fall and hurt them. But we've not had any accidents like that at all. We've not had any accidents. I know it's packed up in here high, but we try to make it as secure as possible."

NO PLANS TO RETIRE
As for how much longer Walrod, who did not disclose his age, would keep chugging along at his little hardware store on the north side of town, he hopes to work until he meets his maker, though he admits his work pace has slowed since having a heart attack just a few years ago.

"Well, I've told customers this for years. I think it's been written before, too. I hope to live to be 102 and fall dead waiting on my next customer. But now I have this defibrillator, and it won't happen because momentarily I'll be gone, and a minute later this thing is going to hit me real hard and I'll be back to say, 'Have a good day.'"

Whenever he does go, it is anyone's guess as to what will happen to the hardware store. Walrod said he is open to possibly selling it to one of his grandkids if they're interested. Granddaughter Ella has taken an interest in the store and has helped her grandpa ring sales on Saturday mornings. But there's one other person who may be interested in the store, as well.

"One of these days I might even own the store," Blair said.

A dispute over payment for land that erupted at a Dec. 3 Board of Directors meeting brought to light a continuing nuisance for the city of Fort Smith and according to one city official, it does not look like that nuisance will be going away anytime soon.

At issue Dec. 3 was an attempt by the city's utility department to acquire land through eminent domain in order to move forward with construction of the Mill Creek Pump Station project. The land owner, Steve Beam, said the $86,000 price offered by the city was too low given the fact that a bank had financed the land for $200,000. Beam eventually received a payment of more than $146,000 for the property.

At the time, Director of Utilities Steve Parke said it was vital for the Board of Directors to approve the project since the city would be meeting with the United States Department of Justice (DOJ) the following week regarding a consent agreement associated with wastewater runoff problems that date back to the 1970s.

The city is prohibited by the Department of Justice from discussing any of the specifics of the meeting, but Deputy City Administrator Jeff Dingman reiterated that the problem was longstanding and would not quickly be resolved.

"The city has not been under a consent decree from the (Environmental Protection Agency) though the DOJ. I think it's been since (1989)," he said, adding that the city is under an administrative order, which he labeled "a preamble to a consent decree."

He said the reason the EPA and the DOJ involved themselves in the city's sewer system is due to a violation of the Clean Water Act.

"In the past, there have been areas of town where untreated water has gone into the streams and the river in violation of the clean water act. That's the whole deal. We've (had) untreated water going to streams and rivers in violation and we have to prevent those."

The overflows of untreated water have been corrected, according to Dingman, though he said the projects continue in an effort to satisfy DOJ requirements and to replace pipe he said it nearing a century in age.

"Now all of the overflows have been corrected, but we have a lot of areas in the pipe that we need to identify in order to secure our system."

Projects such as the Mill Creek Pump Station and the new tanks being installed at the intersection of Jenny Lind and Zero Street are intended to relieve stress on the system that includes miles of outdated infrastructure.

"They're intended to serve as collection basins and then slowly release water into the sewer system, get treated and then recycled, so to speak."

And while the city has made great strides from no wastewater treatment during the 1960s to a system that is constantly being updated today, Dingman said it will still take many years for the city to come out from under any sort of DOJ orders, including an expected consent decree to be put in place by the D)J.

"They've been working on the consent decree for four or five years to get it finalized," he said, adding that the city would comply with the contents of the agreement once it is issued. "We will comply with them. That's the deal. When we get a consent decree negotiated, it will be one we can comply with."

Even though some cities have had their utility and sewer departments taken over by the EPA, Dingman said Fort Smith residents should not expect that even though Parke told the Board that the city has been under some sort of order since the 1970s.

"Those things are for cities who refuse to do what they're supposed to do. We're not refusing. We're doing a lot of work knowing that it's coming. A lot of the work during the last 10 or 15 years is because we know we've got problems and we're correcting them."

And while the collection of utility projects to bring the city into compliance will be well over $100 million when all is said and done, Dingman said the city is not focused on the price tag.

"Once we get everything done, it's going to be a lot. And the other thing that's part of this is not only…of course the main focus is correcting the problems we've got, but there's also a concentrated effort in having a more aggressive cleaning and maintenance program going forward."

As for when the DOJ may release details of the consent decree it has been negotiating with the city, Dingman said it would likely be in the first quarter of 2014 "before we hear something back from them."

"I know it's been at least five years (that the city and the DoJ have been in negotiations), but it's not a particularly fast process."

The cash burn at Tulsa-based Syntroleum Corp. could soon be over as Iowa-based Renewable Energy Group Inc. announced plans to acquire the Tulsa-based energy company, pending shareholder approval. Syntroleum is a 50% partner with Tyson Foods in a large diesel fuel production plant in Louisiana.

Renewable Energy has agreed to buy substantially all of Syntroleum’s assets and assume all the material debt as well. The terms call for Syntroleum to receive 3.976 million shares of REGI common stock worth an estimated $40 million.

“Today’s announcement marks the culmination of our comprehensive process to review Syntroleum’s strategic alternatives to enhance shareholder value,” said Syntroleum President and CEO, Gary Roth. “We are extremely pleased to have found a great partner to provide our stockholders with the opportunity to participate in a company with significant upside potential.”

Shares of Syntroleum closed Tuesday (Dec. 17) at $2.46, down 12 cents. Following the announce of the buyout shares soared 52.44% to $3.75 in aftermarket trading.

Aside from the 101 patents Syntroleum has acquired for its Fischer-Tropsch gas-to-liquids and renewable diesel fuel technologies the past few years the firm has been heavily involved in a joint venture with Tyson Foods. These two partners each own a 50% interest in Dynamic Fuels, a 75-million gallon renewable diesel production facility in Geismar, La., which has been inactive for the past year.

Tyson Foods CEO Donnie Smith told The City Wire earlier this year that the plant would likely remain idle as long as its partner was shopping its interest. He said Tyson would be willing to work with a new partner if one is presented. Tyson did not immediately return a request for comment regarding the pending buyout by Renewable Energy Group.

Each month the Geismar plant sits idle the cash burn is roughly $1 million for each partner. Aside from the monthly cash burn, Syntroleum execs estimate the venture has lost out on roughly $20 million in potential sales since July because the partners can’t reach amicable restart terms.

REGI owns and operates eight active biodiesel refineries in four states with a combined production capacity of 257 million gallons. The firm also distributes biodiesel through a national network.

“Combining Syntroleum’s renewable and synthetic fuel technologies with REG’s expertise in biodiesel production, sales, marketing and logistics should be a positive outcome for investors in both companies,” said Daniel Oh, CEO of Renewable Energy Group. “This will help us grow our advanced biofuel business, enhance our intellectual property portfolio, expand our geographic footprint and launch REG into new customer segments.”

He added that the 50%-ownership in Dynamic Fuels represents an attractive entry for his firm in the renewable diesel sector.

Syntroleum’s board of directors unanimously approved the deal and recommends that its shareholders also vote in favor of the acquisition when presented a ballot.

Executives with Syntroleum will discuss the deal in more detail during its annual meeting of stockholders, which will take place at 2 p.m. on Dec. 18, 2013. The meeting will be held via live webcast. A link to a digital archive of the annual meeting webcast will be available on Syntroleum’s website 24 hours after the annual meeting has concluded.

Renewable Energy Group shares closed at $10.56, down 5 cents, but rose to $10.81 in after market trading following the announcement.

The City Wire will update this story as more details become available.

Consumers may not be freely spending money on non-tangibles, but 2013 marked a turnaround year for investments in the old homestead, with an uptick in renovations that some economists say has been precipitated by the rise in U.S. home prices.

The tell-tale signs of consumer spending in the home renovation projects can be seen in the do-it-yourself big box retail sector with Home Depot. Fitch Ratings recently issued a note on Home Depot and the home renovation sector indicating a projected 5% growth in home improvement activity that has already taken place this year. Fitch expects home improvement spending will increase another 6% in 2014.

“The continued improvement in the housing market, as well as strong home price appreciation seen so far this year, are likely to drive higher spending on home renovation projects in 2014,” Fitch noted.

Steve Abshier, president of Abshier Construction in Rogers, said the back half of 2013 has been busy and he continues to get calls nearly every day for room additions as well as kitchen and bath upgrades.

“Most of my clients want to add square footage. I had a call today from a lady who is retiring and wants to add 600 square feet to her home. Right now I am finishing up another master bedroom suite addition,” Abshier said.

He said the jobs range from the low six-figures down to $400 and there is really no common patterns about what people are wanting. But the majority of his customers have paid in cash, with just one or two this year using home equity lines of credit.

Economists note that near 0% interest rates and record high stock valuations have consumers sitting on mounds of cash which they have steadily been pumping back into their homes nearly all year long. Fitch said retailers like Home Depot have benefited from that cash spend posting strong comparable sales growth since the spring, up 10.7% in the second quarter and 7.4% higher in the third quarter. Meanwhile Fitch expects comp sales to grow in the low mid-single digits over the next two years.

FINANCE OPTION
As real estate values continue to rise, homeowners will have more opportunity to secure home equity lines of credit. Median home sale prices across Northwest Arkansas have risen 24% in the past two years, according to MountData.com.

“We’ve begun to see demand grow at a modest but increasing rate for home equity lines of credit over the last year," said Thomas Hay, loan product manager at BOK Financial, parent company of the Bank of Arkansas.

He said approximately half of the demand for equity products is related to home improvement.

“Often, our clients use their home equity lines of credit for multiple improvement projects over the course of time. Common projects are the build out of a swimming pool, refinish an attic space, or upgrades to kitchens or master baths,” he added.

A large survey of homeowners done earlier this year by Houzz.com found that the average bathroom remodels cost $10,442, while kitchen makeovers tallied $28,030.

Hay said as home equity rises, the amount which can borrowed also improves. Most home equity lines of credit are based on 80% loan-to-value ratio. For example, a consumer who owns a home valued $200,000 and owes $100,000 would have a 50% loan-to-value ratio. Under a contract with a maximum loan-to-value of 80%, this particular client would be eligible to borrow up to $60,000 to improve their home.

HOMEOWNER MOTIVATION 
Abshier said most of the customers he has completed projects for in the past year where planning to stay put.

“They needed more space or wanted updates for their own comfort level,” he said.

The Houzz.com survey indicated the motivation behind renovation and redecorating projects is still about improving the look, feel, flow or layout of the home. However, more people said this year they were also investing to increase the home’s value versus last year.

Roughly 40% of 100,000 homeowners surveyed said they plan to remodel or add an addition in the next two years, and 84% said they planned to redecorate by 2015. The survey found that 53% thought the time was right for starting a home renovation.

POTENTIAL HEADWINDS
Fitch notes several challenges that could still derail the sustained rebound in home remodel spending in 2014.
• Lingering high unemployment

• Tighter consumer credit standards
, and
• Rising interest rates


Spending for big-ticket remodeling projects will continue to lag the overall growth in the home improvement sector somewhat, as credit availability remains relatively constrained and homeowners remain cautious in their spending, according to Fitch. However, there are signs that homeowners are somewhat more willing to undertake larger discretionary projects and purchases.

No longer are the Fort Smith Board of Directors and the Sebastian County Quorum Court wrangling over whether or not to add an additional $800,000 to the $8 million budget for the Ben Geren Aquatics Center.

Instead, both bodies approved an amended interlocal agreement in separate meetings Tuesday (Dec. 17), setting the project budget at $10.9 million, which would allow the project to include many of the amenities Fort Smith voters thought they would see in a project when they voted to approve a sales tax to fund the city's half of the construction in May 2012.

But spending the additional funds did not come without a fight at the city Board meeting, which took place an hour prior to the meeting of the Quorum Court.

BALLFIELDDELAY
In order to pay for the city's additional $1.5 million now obligated to the budget, the money will be taken from the Parks and Recreation Department's Five Year Capital Improvement Plan. But in order to take from CIP, projects originally slated for funding during fiscal years 2014 and 2015 have been shuffled around, including the River Valley Sports Complex, a project spearheaded by Election Commission Chairman Lee Webb and State Sen. Jake Files, R-Fort Smith.

An ordinance passed by the Board on June 5, 2012, requires that money be set aside for the project from the sales tax in different amounts at different times. From June 2013 to December 2013, the ordinance spells out $750,000 in funding that would have been set aside for the project, money that City Administrator Ray Gosack said would now be used for the aquatics center instead.

"It would be used for the aquatics center and then we would have to get re-appropriated for the ball field project later on," he said, adding that the Board would have to amend the ordinance at a later date in order for the funding to officially be taken away. "It would have to come separately (from the vote tonight)."

Webb addressed the Board, asking that it look at other ways to draw funding from the CIP in order to build the aquatics center without having to take from funds already obligated to the sports complex, to be built at Chaffee Crossing.

"I know the position you're put in. I've been there myself. I hope there's a way to figure out (how) to get around this,” Webb said in addressing the Board.

Even though the sports complex, which is proposed to now not be built until 2018, is being sidelined for the time being, Gosack said a previous agreement with the U.S. Army National Guard would still move forward. The Army, through a grant, would clear the land for the ballfields at Chaffee Crossing in Aug. 2014. After their work is complete, Gosack said the city would still spend about $350,000 already set aside for the project to "stabilize" the site and carve out drainage, preparing the site to sit for years until funding comes available to construct the ball fields.

WAVE POOL ADDITION
Even though the sports complex was an issue raised by Webb, the Board looked at other factors in their decision to approve the additional funding.

Director Mike Lorenz presented the Board with polling done by his daughters, who attend Northside High School and Trinity Junior High, which showed water slides and a wave pool as an interest among more than 600 students he said were polled at both schools.

He said it was clear to him that in order to draw patrons to the facility, it would need to be built closer to the concept presented to the Board in March of this year, including a longer lazy river, slides and other amenities, adding that "we need to build something we can be proud of."

Director Keith Lau echoed those sentiments, adding that the city needed to "be the best or go home."

Parks and Recreation Director Mike Alsup said building the larger facility and possibly including a wave pool would be the primary driver of customer traffic, which would lead to a lower chance of both the city and county having to subsidize the facility's costs each year. He came to the conclusion after speaking to individuals at municipal water parks across the region.

"The likelihood to break even is greater with a wave pool being part of the project," he said, adding that the "wave pool is the draw."

He also said he had spoken with the project designers and had been assured that the wave pool could replace the diving well and still have the entire aquatics center project come in under the new $10.9 million budget.

‘PROMISES OF FUTURE NUMBERS’
The final vote for the $10.9 funding concept passed the Board on a 4-3 vote, with Directors Pam Weber, Philip Merry and George Catsavis voting against the project.

Both Merry and Weber expressed concern that not enough was known about the costs of the project, with the $10.9 million figure having just been made public on Friday (Dec. 13).

"We've seen so many numbers and we've relied on so many for numbers, but we still don't know if $10.9 million would cover the original plan or cover a wave pool. We don't know that," Merry said.

Weber went so far as to suggest the possibility of going back to the voters and asking for an extension of the current bonds in order to not sacrifice funding for the sports complex or any other facility. It was an idea that gained no traction.

"I want to remind all of you when we do this vote - we relied on numbers that did not come to fruition," she said. "And our Board is not in the business of micromanaging. But I wish this was one time I had stepped forward and micromanaged. Because going from $8.8 million to $11 million on the same plan has not left me with a good taste in my mouth or left me feeling comfortable with promises of future numbers."

QUORUM COURT ACTION
Following the action of the Board, the Quorum Court approved the additional funding of their portion of the project, with Judge David Hudson explaining that short-term loans could be issued against future sales tax revenues the county will collect that is dedicated to parks capital improvements.

When asked by Justice of the Peace Linda Murry what the cost of such short-term financing would be, he suggested using a local financial institution to structure the loans with interest rates he did not expect being above 2%.

Justice of the Peace John Spradlin spoke out against the additional funding, explaining that designer Larkin Aquatics had already been off in their estimates by 24.6% from the original concept to the most recent cost estimate.

"We don't have a firm number. This is really scary and with revenues down…with revenues down and we can't get a firm number out of these guys. ... This is very dangerous here and I think if we're not careful…we're already stretched and revenues are down. The projections don't look good. We can't get a firm number. We're flying blind and now we're going to say, 'OK. Let's do this.'"

Not having the votes to defeat the cost increase, the amendment moved forward, with Justice of the Peace Danny Aldridge, a proponent of the aquatic center, declaring Tuesday as a great day for Fort Smith and Sebastian County.

"You've got governments working together to get the citizens what they want. We're serving them and using their tax dollars the best way we can. I think it will be great for everybody. I think it will be a boom for the economy."

And even though the city spent nearly 30 minutes discussing a possible wave pool, with Alsup declaring he was assured by the project designer that it could come in under budget, Hudson said he was unaware that estimates related to a wave pool were included in the project to replace the dive well.

"I don't know anything about that, so I can't comment on that. I know that Mike Alsup has talked to some other water park operators and that their recommendation to them is you're better served participant-wise, and connected to that cash flow-wise, with a wave pool than you would be with a dive well."

Following the meeting, Spradlin said he feared the increased funding and the county's plan to eventually take out loans at a later time against future sales tax revenues would put the county in a financial bind, resulting in tax increases to make up the deficits. And he placed the blame squarely on Aldridge's desire to see a larger park built.

"It's a sad day for taxpayers. And I blame Danny Aldridge."

Hudson and Gosack have said a joint meeting of both the city and county legislative bodies will be held in coming weeks to finalize the design of the project, though a firm date has not yet been set.

The Arkansas Ethics Commission released a staff report on Wednesday (Dec. 18) alleging that Lt. Gov. Mark Darr, R-Ark., misspent more than $44,000 in both campaign and public funds.

The issue of spending by Darr was first brought to light by attorney and liberal blogger Matt Campbell, who reported inaccuracies in Darr's campaign finance reports tied to his run for lieutenant governor and filed an ethics complaints against him. The disclosure came to light shortly after Darr's declared candidacy for the 4th District Congressional seat. Darr dropped out of the race 17 days after announcing.

After announcing his withdrawal from the race, the lieutenant governor told Talk Business in an interview that he had in fact made errors in his campaign finance reporting.

“No one wants to make a mistake in filling out reports obviously, I’m not throwing other people under the bus. I signed the reports, so it’s my campaign, my responsibility. But there were some errors on there,” he admitted.

Darr also said he expects he may owe his campaign money as he took more than the debt he was owed.

“I think I will. It’s not a whole lot of money but it’s still an error in calculation and reporting,” Darr said. He was not ready to disclose the total repayment as he wanted attorney Paul Dumas to review his amended reports, but he said the amount was “not exorbitant.”

An annual legislative audit found that the problems were not confined simply to the campaign, but included information alleging that Darr had misspent nearly $10,000 in state funds on items including lodging, commuting expenses and other personal expenses.

According to Campbell, who was in the hearing Wednesday, the violations alleged against Darr included:
• $3,577.76 in improper travel reimbursements;
• $3,532.60 in personal expenses on a state credit card;
• $31,572.74 of campaign funds used for personal expenses; and
• $6,000 in campaign contributions in excess of campaign contributions.

Campbell said the Ethics Commission noted Darr's cooperation with the investigation, adding that Darr's defense was that "he just didn't know what he could and couldn't do (with campaign and state funds)."

Darr could face maximum fines of $2,000 for each of the 12 violations he is alleged to have committed, though Campbell doubts he'd actually be asked to pay the full $24,000 maximum fine.

"They won't hit him with the full $24,000 fine because they noted that he was forthcoming with information when the investigation started."

Darr did not make a statement following the hearing, though when asked by a reporter if he would resign his post as lieutenant governor, he replied, "No."

Campbell, who has built a reputation as a thorn in the side of Republican officeholders, said the findings released today shows that the law works.

"This is proof that the system works when people are willing to actually put in the effort and file the complaint," he said. "There's a lot of allegations of people doing X or Y, but nobody takes the next step and files a complaint. The ethics commission did a great job on the investigation. The accounting was thorough."

There has been no word on if the findings of the Ethics Commission report would be forwarded to a special prosecutor. The Legislative Audit report was forwarded to Pulaski County Prosecuting Attorney Larry Jegley for review of possible criminal violations.

A shareholder-derivative lawsuit against Wal-Mart Stores and key officers of the global retailer may move forward, according to an opinion issued Wednesday (Dec. 18) by a three-judge panel with the 8th U.S. Circuit Court of Appeals.

The lawsuit is the combination of several similar lawsuits filed by Wal-Mart shareholders after it was revealed in 2012 that Bentonville-based Wal-Mart and key officers were under investigation for bribery and other violations of the Foreign Corrupt Practices Act related to operations in Mexico. The investigation was later expanded to allegations of FCPA violations in China, Brazil and India.

Plaintiffs in the case are John Cottrell, the Louisiana Municipal Police Employees’ Retirement System, Elizabeth Tuberville, Kathryn Johnston Lomax, William Cottrell and Andrew Richman. John Cottrell is the lead plaintiff who derivatively and on behalf of Wal-Mart Stores filed his action.

Wal-Mart officials have estimated that spending related to FCPA and internal compliance efforts will top $310 million this fiscal year. Through the second fiscal quarter, the company spent $155 million in FCPA and compliance matters.

Wal-Mart voluntarily disclosed internal investigative findings to the U.S. Department of Justice in November 2011. The entire world became aware of the allegations in April 2012 when the New York Times made the bribery investigation public.

In late 2012, Wal-Mart and other defendants in the shareholder-derivative lawsuit asked the U.S. Federal Court for the Western District of Arkansas to delay the action until a similar proceeding in Delaware courts received a ruling. The federal judge granted the defendants’ request based on the “Colorado River” precedent. That precedent, set by the U.S. Supreme Court, “held that exceptional circumstances may permit a federal court to refrain from hearing a case and instead defer to a concurrent, parallel state-court proceeding.”

The 8th Circuit Judges said Wal-Mart’s “argument is persuasive” in suggesting that the Arkansas and Delaware actions are similar and should be held to the Colorado River rule. But it wasn’t persuasive enough.

“Nevertheless, we reject the Defendants’ argument because it ignores the formal differences between the two proceedings after the threshold demand determination,” noted the opinion.

The opinion explained that the outcome of the Delaware proceeding may not address issues in the Arkansas lawsuit. Also, the federal Securities Act claims in the Arkansas case are to be heard in a federal court and not a state court. The Delaware case awaits a ruling from the Delaware Supreme Court.

“The resulting divergence of the Federal and Delaware proceedings, and the practical elimination of the Securities Act claims, casts doubt on the parallel nature of the two proceedings,” noted the opinion. “In conclusion, we join the Second, Seventh, and Ninth Circuits and hold that the Colorado River doctrine may not be used to stay or dismiss a federal proceeding in favor of a concurrent state proceeding when the federal proceeding contains a claim over which Federal courts have exclusive jurisdiction.”

Wal-Mart issued the following statement about the 8th Circuit ruling: “We are reviewing the 8th Circuit Court’s ruling and our understanding is that the court has not ruled out a stay. We are considering our options.”

The Appeals Court case is 12-3871, John Cottrell v. Michael Duke. Link here for the PDF of the 8th Circuit opinion.

Shareholders of Tulsa-based Syntroleum Corp. were encouraged Wednesday (Dec. 18) to approve the proposed $40 million acquisition by Renewable Energy Group. They were told to expect a payout equaling $4.04 per share, a 37% premium over the company’s 10-day average price.

The stock price rose 36% to $3.34 in active trading on Wednesday (Dec. 18.) with more than 1.08 million shares trading hands, roughly 10% of it’s total outstanding diluted shares.

CEO Gary Roth told shareholders at the company’s annual meeting Wednesday that after extensive review the pending deal with REG will provide the best value proposition for investors given the upset potential of the combined operations.

During the meeting company execs fielded several questions from investors about the fairness of the price offering at this time. Just five months ago on July 17, the Syntroleum shares were trading at $7.55, as there was great hope the company’s joint venture with Tyson Foods Inc. would restart their renewable fuels plant in Geismar, La.

The Dynamic Fuels plant in Geismar has been idle since November of 2012, costing each partner $1 million a month as it sits in standby mode. Syntroleum execs estimated the plant has lost out on roughly $20 million in potential sales given the two partners could not agree on restart terms.

Ron Stinebaugh, senior vice president of finance at Syntroleum told shareholders that this deal was the best offer on the table and together the companies could benefit from the marriage.

The proforma company would have a capacity of 294.5 million gallons of production next year, which would include 50% of the Dynamic Fuels facility should it be up and running by then. Together the firms have patented technology and a sound refining and distribution channel for a wide range of feedstocks.

Stinebaugh said once the deal is approved, the Dynamic Fuels parties will sit down and discuss possible restart strategy. The cost to restart the Geismar plant is an estimated $20 million, based on feedstock prices.

Tyson Foods has no comment on the plant restart or the sell of Syntroleum at this time.

SPIN DOWN
Stinebaugh once the sale is approved by shareholders sometime early next year, Syntroleum will begin its spin down of operations and it will be retaining some $5.3 million to retire existing obligations, not being acquired.

He said if for some reason, more money is required that could impact the actual payout to investors. At this time, Syntroleum investors are expected to receive a 0.3809 shares of REG stock in exchange for each of their Syntroleum shares.

Stinebaugh said the share conversion would take place late in the first quarter of 2014, after a proxy vote and share offering from the two companies.

POTENTIAL UPSIDE
Syntroleum has a market cap of roughly $33 million with 10 million outstanding shares. REG has a market cap of $404.6 million with 37 million shares outstanding. REG closed Wednesday at $11.10, up 5%.

Analysts at Cannacord Genuity called the deal “positive, but risky.” The all-stock deal would diversify Renewable Energy into the “next generation” of renewable diesel. Production at Dynamic Fuels, the joint venture with Tyson, has been hampered by feedstock, catalyst, and equipment failures, the analysts said.

Cannacord has a price target of $14 on REG.

Analysts with Raymond James & Assoc. said the deal is a rare instance of corporate M&A in the U.S. biofuel industry. Buying individual plants and strategic partnerships have been far more common.

Bentonville is known across the region as a city on the rise – leading the metro area in new home sales, building permits and often sales tax revenue growth, while also having the smallest population among the four major cities situated along the Interstate 540 corridor.

That’s not by accident, according to Bentonville Mayor Bob McCaslin, who told several dozen residents and business professionals Wednesday (Dec. 18) that intentional planning on the city’s part is crucial for spurring on outside investment.

City officials unveiled a large redevelopment plan that encompasses the southeastern quadrant of the 18-acre downtown area. The plan prototypes were completed by Hight Jackson & Associates over the past three to four months. Community and economic development director Troy Galloway told The City Wire the approximate cost of the prototype planning was somewhere around $17,500.

“We felt like this plan was needed given the near-over capacity levels of the immediate downtown square area and this southeastern district is somewhat ripe for redevelopment as the new Razorback Greenway runs right through this area,” Galloway said.

There are three vacant industrial facilities in this area that were the former manufacturing plants for Tyson Foods, Kraft and the old Bentonville Ice House, which present some interesting options for investors.

“Our mayor has vision and allows us the creativity to be intentional about the communities we help create in Bentonville. That vision is all out creating communities where people want to be, where they want to spend their time,” Galloway said.

The plan has three main concepts:
• Experience Districts
• Residential Density
• Multimodal Connectivity

Within those three concepts there are sub plans for three distinct districts all within walking distance of one another and downtown square.

The Arts District would be flanked by the Bentonville Library on Main Street and encompass four or five blocks or so of redevelopment that caters to the Arts. Allie McKenzie, one of the architects who worked on the plan prototype renderings, said the vision for this area would include a public plaza, studio space, inexpensive living space for working artists, small cafe’s and a public arts center.

The Market District encompasses several blocks around the vacant Tyson Foods facility on 8th Street and the empty Kraft cheese plant on S.E. E Street. The Razorback Greenway runs through this district and should see more foot and bike traffic as the Greenway is completed next year. McKenzie said the Market District plan will center around the culinary arts and hopefully spawn new commercial development for restaurants, overflow plaza space for expanded Farmer’s Market as well as work; living  and educational space.

The two major streets that connect these two districts — Main Street and Southwest A  Street—would also need some redevelopment. The plan calls for denser multifamily development on the perimeter of the Market District as well as the Arts District, with single family homes, shops and mixed use space along both Main Street and Southwest A.

The third component of the overall plan is “Great Neighborhoods." McKenzie said for the businesses in these two districts to thrive, traffic is key, whether by foot, cycle or car.

Galloway said the plan is in no way intended for the city to acquire property, condemn property or develop property. It is a blueprint that the economic development team can show investors and developers who want to help create these districts where people want to spend their time and money. He said the Walton Arts Center that will come to Bentonville in the future is not part of these plan discussions.

“We would hope if these districts do develop the Walton Arts Center would be located as a major anchor,” Galloway added.

Mayor McCaslin said the city’s role in this process is to the put out vision which can be supported with infrastructure investment in roads, sidewalks and sewer. He said it will be private investment that will shape the final outcome, much like has happened on the town square.

“We continue to draw investment from inside and outside the region, today I attended an opening of a new restaurant (Taziki’s) in town. The owners are from Pulaski County, who spent some time in town and liked what they saw here. This makes their fifth restaurant in the state,” McCaslin said.

The proposed redevelopment plan is expected to be submitted to the planning commission in early January and if approved will go to the city council.

The first infrastructure phase related to this proposed plan is set to begin in January with sidewalks being constructed along 6th Street, one of the main arteries that runs through the proposed Arts and Market Districts. That project is being funded through a grant the city received this year from the Endeavor Foundation.

Galloway said there are no plans to widen Sixth Street as it should likely remain largely a residential street.

A little more than a month after the Arkansas Department of Environmental Quality presented its plan to address contamination caused by Whirlpool's admitted leak of trichloroethylene (TCE) into groundwater in the 1980s, action is being taken at the contamination site.

According to ADEQ Public Outreach and Assistance Division Chief Katherine Benenati, crews from ENVIRON will be in the area this week.

"Whirlpool’s consultants are in the field doing pre-design testing of the soils in preparation for implementing the RADD after the first of the year," she said in an e-mail.

The RADD, or Remedial Action Decision Document, was first released in October after months of discussions between the appliance maker and ADEQ on how best to clean up the TCE contamination. ADEQ recommended a variety of methods for cleanup, all of which were explained at a public forum ADEQ hosted in Fort Smith in November.

The primary method of clean up will consist of the use of chemicals to neutralize the TCE.

"ADEQ has determined containment of the soils and In-Situ Chemical Oxidation/Reduction coupled with Monitored Natural Attenuation (MNA) for the groundwater are the most effective remedial approaches at the Whirlpool facility," the document states.

The RADD also recommends covering part of the contaminated Whirlpool site with asphalt at a cost of $600,000.

"The cover will be designed to prevent the water from migrating through the contaminated soils. The cover will be coupled with an institutional control to prevent excavation of the on-site impacted soils. In addition, Whirlpool will implement a soil gas monitoring program to be sampled on a quarterly basis."

The RADD also calls for institutional controls to be put into place, such as bans on drilling groundwater wells in the contaminated area, generally in and around the Whirlpool site and immediately north of the facility. A previous attempt by Whirlpool to have the Fort Smith Board of Directors impose a ban on groundwater wells was defeated.
www.thecitywire.com/node/27060

In addition to ENVIRON conducting pre-design testing, ADEQ was at the contamination site Tuesday (Dec. 17) conducting their own sampling, according to Benenati. She went on to say the agency conducted "advancement and sampling of soil borings using Geoprobe. Soil samples were screened using PID and select samples were sent to laboratory for analysis. A grab groundwater sample was also collected for laboratory analysis."

Residents may have also noticed crews and large equipment digging into the ground. Benenati said ADEQ was using a "Membrane Interface Probe (MIP). This device detects the presence of VOCs (volatile organic compounds) using a probe pushed into the soils."

Once ENVIRON begins to fully implement the RADD, it is estimated that the company will have spent about $5.4 million on chemicals associated with the in-situ chemical oxidation. That is in addition to the $600,000 spent on the asphalting of the contamination on site at Whirlpool's former manufacturing plant, bringing the total cost of cleanup to $6 million.

All the cleanup will be in addition to a restriction placed on the deed of the Whirlpool site, restricting some activities that can be performed at the site.

"A deed notification will be filed with appropriate land records office. The deed notification would identify the kinds of contaminants present, and describe activities that should not be conducted at the facility and grant site access to ADEQ. During the performance of routine groundwater monitoring at the facility, a facility evaluation will be conducted to ensure that there is no on-site use of the contaminated groundwater."

For anyone with a dream of being the next city councilman, senator or even dog catcher, the University of Arkansas at Fort Smith is planning a workshop to teach novice candidates the ins and outs of running for public office.

"So You Want to Get Elected" will take place Jan. 24 - 25 at the Blue Lion at UAFS Downtown.

According to Dr. Robert Willoughby, chair of the Department of Political Science at UAFS, the new workshop will feature more than just academic information on how to run for office.

"The main reason is to provide a novice who is wanting to get into politics the opportunity to learn from not only academics who are in the political science department, but to learn from a variety of speakers who hold a wide variety of offices across the state."

Among the speakers are former Arkansas House Speaker Shane Broadway, Sen. Joyce Elliott of Little Rock, UAFS Political Science Professor Williams Yamkam and Clint Reed, a partner at Impact Management Group in Little Rock.

"(There will be) a wide range of speakers to help someone who is interested in getting into politics but doesn't want to hire a high dollar consultant a two-day workshop to provide an outreach for their campaign."

While the group of speakers and panel participants, which will also include Michael Tilley of The City Wire, may come from political backgrounds, the workshops spread over the two-day period will not espouse any political leanings.

"It's completely non-partisan," Willoughby said, adding that the workshop will be "more of a how-to."

The workshop is among a select few offered through the United States, according to Willoughby, who said Yamkam had participated in another workshop at The George Washington University in Washington, D.C.

"Dr. Yamkam actually did a survey or a poll of universities that offer these types of workshops and he thought there were only two or three right now," he said. "(He knows about GWU's workshop) in the nation's capitol because he's been going to them for a number of years. It was part of the stimulus for getting this done. But no, it's not widely done. A lot of candidates just have to go out on their own or hire a political consultant to get them going or figure out how to do it by trial and error. But this is a much better approach for local or state candidates who want to find out what it takes to put something together."

Fort Smith City Director Keith Lau, who ran for public office for the first time in 2012, said having a workshop like this would have been of great benefit to him.

"For me, the first and foremost is the expense you could save by knowing the processes," he said.

Among the processes and topics to be discussed include campaign and issues management, get-out-the-vote methods, media relations, financing a campaign and advertising strategies.

Lau said in the area of advertising and get-out-the-vote methods, he had to rely on the advice of friends who had previous experience instead of getting professional advise through a program like the upcoming UAFS workshop.

The fee for the workshop is $125, which Lau said would be well worth any candidate or potential candidate's time.

"Write it off as a campaign expense. That's what I would do," he said. "And (finding out) how to account for and how to find the information about your campaign financing would be worth that $125."

The workshop's inaugural event has been timed to coincide with UAFS' new political science major, Willoughby said. The major was first made available during the Fall semester.

"This workshop and any future workshops are designed to give awareness that this campus now has a political science major."

Registration for the workshop runs through Jan. 10. Individuals may sign up for the workshop by contacting the Center for Lifelong Learning at 479-788-7220.

A new hotel is coming to the corner of Phoenix Avenue and McKennon Boulevard, bringing with it both an increase in occupancy and about 30 new jobs.

The Home 2 Suites will be part of the Hilton brand and will add a second hotel at the intersection for hotel developer Driscoll Properties.

President and CEO Marion Driscoll said adding the additional hotel will allow him to meet the increased demand he is seeing at his other hotel at the intersection, Homewood Suites.

"We're seeing our occupancy rise every year. Our demand ratio versus rooms ratio is stronger, to where I'm not able to fulfill all of my guests' needs at the Homewood. That will help the overflow."

The four story, 88 suite, 55,000 square foot hotel will be LEED certified, Driscoll said, and will be built on land owned by the Fort Smith Regional Airport.

Airport Executive Director John Parker said the lease was structured for 50 years, bringing in annual revenue for the airport of $27,000 for the first five years. The rate paid by Driscoll in future years will increase, with the airport netting $2.5 million in proceeds as a result of the lease agreement.

The lease, which does not include provisions for profit sharing, would be good for all airport patrons, Parker said.

"Any development that occurs on the airport (property), whether aeronautical or not, is actually good news for the airport itself. But a hotel development is very good because it stabilizes rates for non-aeronautical users of the airport."

While the new development will allow Driscoll to address his capacity issues at Homewood Suites, it also allows him "to market to a different clientele that I'm not able to market to right now."

"Made to be customized, our stylish suites are packed with perks and high-tech amenities that are just your style," is the message you see on the hotel brand's website. The types of amenities include a kitchen area, media hub, cook tops, saline pools, integrated laundry and fitness facilities, outdoor areas that include walking paths, and a business services area.

The final designs for the multi-million dollar hotel are not yet complete, but Driscoll expects a ground breaking sometime in February or March 2014 with a grand opening by February 2015.

The Federal Reserve affirmed its outlook for stronger GDP growth in 2014, and said Wednesday it will reduce – or “taper” – its injection of $40 billion into the U.S. economy through securities purchases.

The December GDP forecast of 2.9% to 3.1% is marginally better than the 2.8% to 3.2% estimate given in September by the Federal Open Market Committee (FOMC).

Wells Fargo economists project a 2.5% growth, not quite as optimistic as the Fed expectation, according to a brief note published by the bank’s economic team on Wednesday (Dec. 18) following release of the FOMC meeting.

However, the FOMC announced that in January tapering will begin as the committee will reduce its holdings of mortgage-backed securities from $40 billion per month down to $35 billion. Another $5 billion will be shaved from the Treasury notes purchased each month as well.

As for the unemployment rate, the FOMC members lowered their outlook for the to 6.3% to 6.6% for 2014 in December from 6.4% to 6.8% in September. This adjustment in the unemployment rate outlook was far greater that for made for economic growth, while the top end of the inflation outlook for 2014 was actually lowered.

Wells Fargo noted this suggests the lower unemployment rate was a key factor in shifting the balance toward tapering. The Fed’s statement suggests that the “cumulative progress toward maximum employment and the improvement in the outlook for labor market conditions” was a basis for deciding to taper.

Also factoring into the FOMC’s decision was the extent to which fiscal “restraint may be diminishing.” As expected, the inflation outlook remains below the 2% long run target throughout the 2013 to 2015 period, with the 2014 outlook adjusted to 1.4% to 1.6%, down slightly.

Wells Fargo notes that while 1.4% inflation is still well below target, this marks a significant pickup from the 0.9% rate at which members expect inflation to register in 2013.

The FOMC strengthened its commitment to keep short-term rates low, 4% stating a rise in the fed funds target would not come until the 3.5% unemployment rate was “well past” the current threshold of 6.5%.

Wall Street reacted favorably to the taping announcement with the Dow Jones Industrials advancing 1.84% closing at 16,167 at the close of business Wednesday (Dec. 18). The S&P 500 also picked up 1.66% to close at 1,810. The NASDAQ followed suit rising 1.15% to 4,070.

The bond market yields also edged higher with 10-year Treasury Note yielding 2.87% as prices declined slightly. Gold, Crude Oil and the U.S. dollar slipped lower on the taper news.