Northwest Arkansas is becoming a hotbed of innovation for startup ventures looking to make a name for themselves among an impressive junior alumni group such as Amy Callahan of Collective Bias, Jay Howard with I.O. Metro or John James and Terry Turpin of Acumen Brands.

“The past five years have been incredibly remarkable with the velocity of entrepreneurial startup ventures in the region,” said Jeff Amerine, director of technology ventures at the University of Arkansas.

An ecosystem of support has evolved, also, with at least five active angel investment funds to help with seed money and early stage capital. Equally important, Amerine said, there is active engagement from the state level down to local chambers of commerce from leaders who understand the importance a thriving entrepreneurial sector can have for moving the economy forward.

The downturn in the economy was the catalyst for this local movement and now that the “flywheel” is in place, Amerine said sustaining high levels of intensity could be a challenge, although there is no sign yet of a letdown. Longer-term, he said, the region must commit to educating future technical talent beginning in grades K-12 to make sure there is an ample workforce with specialized technical skills.

“Startups that grow require more talent. Without it, the region and state run the risk of losing those companies to areas with more abundant technical centers,” Amerine said.
“It is good to hear our local schools and two-year colleges making commitments in these areas.”

WIth respect to funding, Amerine said it’s always hard for startups, but there are more options for local companies than ever before. He said the angel fund networks are applying more rigor to their selection and investment process and hope to work more with private equity capital partners in the future with $1 million to $2 million stage investments, a level that has been lacking.

More than 300 startups launched in Northwest Arkansas in the last five years, raising more than $190 million in funding to do so. Amerine said the bulk of that capital was raised last year and put the region on the map as a viable place to start a business.

“There is no shortage of ideas in this region and the state. We continue to see really strong candidates and some solid business plans presenting for capital infusions,” said Ramsay Ball, an angel investor and mentor for several startup ventures in the region.

With the help of entrepreneurial advocates like Amerine and Ball, The City Wire has tagged five new companies in various early business phases as the ones to watch in 2014. Oh Baby Foods, Overwatch, Silicon Solar Solutions, EcoVet and DataRank were selected because they have talent, capital and ideas — three main ingredients necessary for success, according to local advocates and investors. Some of these five startups may thrive for years, some may get acquired and some may fizzle. (Videos from four of the startups may be viewed at the end of this story.)

OH BABY FOODS
Oh Baby Foods and its founder Fran Free are dubbed the pacesetter for this year’s class. She launched Oh Baby Foods in 2009, armed with two college degrees, a baby on board and $50,000 of her own money. Product hit the shelves on daughter Lucy’s first birthday.

Free said she toted Lucy from store to store as she tried to sell her way into the retail space. Oh Baby found a following, but keeping up with the growing demand for the product has not always been easy.

Free almost quit two years into the effort. She developed a frozen baby food product that was offered in several retail outlets, but profits were nil and the seed money was almost gone. That’s when an angel investor stepped in and provided the capital she needed to reformulate the product to go on the shelf in the baby food aisle. Free worked with Whole Foods to get additional funding in 2012 to convert to squeeze packets and the retailer put in her more than 200 stores across the country.

“Sales are up 1,113% in our Whole Foods business since we went to the squeeze packets in September,” Free said.

She said Whole Foods accounts for 40% of her business, and she has retailers regularly calling and wanting the product. Free said she has secured a line of capital from Arvest Bank, but is at a crossroads that requires carefully evaluation of how the capital is used.

Expanding into regions like the Northeast U.S. is costly, she said, but there are many offers from specialty stores in the area or moving to the area. Working with food brokers and distributors, Free said there would be numerous fees and promotional costs associated with taking on a new retailer in a region far away from her processing production in California.

Free recently hired a new "options analyst,” someone who carefully evaluates all the options for future distribution the company receives each week.  

"We are having to turn down retailers. We want to grow, but we are being cautious about how fast," she said. “We have four employees and just moved to a new office in the Three Sisters Building in downtown Fayetteville.”

Free said the future is bright for Oh Baby, but getting a handle on how many stores and retailers they serve is a constant challenge as there is limited inventory and sales visibility with 60% of her wholesale customers.

“I was eager enough to fake what I didn’t know in those early years, but the business is becoming more complicated as it grows. There is a lot to process mentally each day. We are a close team and we are working really hard to make the best decisions for the company’s future,” Free said.

ECOVET
EcoVet began as S.A. Concepts in 2012, a startup venture dedicated to provided liveable wage jobs for military veterans also trying to get a college degree. S.A. Concepts initially hoped to secure nonprofit status as a workforce program but because the employees were manufacturing a product for sale, the company was denied non-profit status.

Drake Vanhooser, co-founder of S.A. Concepts, said last year the company was approached by EcoArt 360, a locally based supply chain management company that took over ownership of the workforce venture. At that time the name was changed to EcoVet and the focus moved from making aero dynamic skirting for semi trailers to crafting wood furniture that could be sold to furniture retailers.

EcoVet takes old semi trailers headed for the graveyard, breaks them down and reclaims the maple and oak planks that make up the trailer flooring. They sell off any extra scrap metal and use the wood for their furniture. EcoVet employs nearly 30 full-time workers, running two shifts a day in their Springdale facility. The workers have the capacity to break down three trailers a day.

Vanhooser said the company sources its trailers from Wal-Mart and several large trucking companies which is challenging because they are often located hundreds of miles from the Springdale manufacturing center.

He said these are interesting times for EcoVet as they have been building up inventory to take to Sam’s Club for a Road Show next week in San Antonio at a new club opening.

“We have 24 of these Sam’s Club opening Road Shows to do in the next few months and hope this will lead to the retailer purchasing the product for online or in club merchandise. We are working with two other prominent furniture, home furnishing retailers about carrying the EcoVet products,” Vanhooser said.

The 2014 goal for this company is to ramp up sales, so more veterans can be hired.

DATARANK
Harnessing the power of big data, Ryan Frazier and his DataRank team help companies sort through social media feeds to better understand the power and influence of their brand and company image within the cyber world.

Frazer and co-founders Kenny Cason and Chuong Nguyen started the company they first called TTAGG while in college at the University of Arkansas in the fall of 2011. Frazier said they changed the name to DataRank last year because they felt it better told their story.

In two and a half years DataRank has been able to market their analytical dashboard software to numerous customers, namely consumer packaged goods (CPG) brands such as Clorox and Callaway Golf.

DataRank uses nine dimensions that they divide into two categories: content influence and user influence. They then prioritize the best, most actionable information from the content feeds.

Frazier said DataRank’s strength is its ability to take cumbersome data sets and make them more manageable. While the startup pales in comparison to well-known data analytic firms such as Nielsen, Frazier said the sector is still ripe with opportunity.

Since founding the business, the company has grown to nine employees with plans to ramp up to 12 in the next few months. They recently closed a deal for $1.4 million in funding and are looking to add a smaller investment in the next few months from a local angel network. Frazier said that should be adequate funding for a couple of years as DataRank continues to grow its customer base. Sales grew 350% during 2013 and Frazier said the company is profitable.

Frazier sees the big data industry only get bigger. He said it took time to get the technology scaleable, but now that it’s available, DataRank is signing partnerships with agencies and marketing firms in addition to signing on new CPG customers.

A recent study of 75 North American retail executives found that 46% of retailers considered the volume of information they had to deal with to be their biggest challenge. That creates an even bigger need for companies like DataRank.

SILICON SOLAR SOLUTIONS
Silicon Solar Solutions, co-founded by Douglas Hutchings in 2008 while he was a graduate student at the University of Arkansas, has grown from a class assignment into a nationally recognized solar technology company with a spinoff startup known as Picasolar.

Hutchings later earned his doctorate and has expanded the company to eight employees, all with advanced engineering degrees. In October, Silicon Solar received a SunShot Incubator Award from the U.S. Department of Energy. The award came with $500,000 in funding which was targeted toward early-stage assistance for startup companies seeking to commercialize their inventions.

The company has developed patented solar technologies since 2008, subsisting on private capital raised along with numerous grants and awards at the state and federal level. Silicon Solar Solutions also licenses core intellectual property to existing solar manufacturers. The recent award is for a patent-pending process that will increase the efficiency of solar cells.

“Our goal is to prove our technology on industrial cells and work towards Arkansas-based manufacturing of the equipment,” he said.

The newest technology is a self-aligned hydrogenated selecting emitter for N-type solar cells that was invented by Seth Shumate, the chief technology officer for Silicon Solar. This product could improve the efficiency of solar cells by 15% and save an average-sized solar panel manufacturer $120 million annually and make solar energy more affordable for consumers, Hutchings said.

The emitter is marketed through Picasolar Inc., a sister company that shares the same senior management and board of directors as Silicon Solar Solutions.

Hutchings said the company’s next move is to raise $2 million from private investors or strategic partners. This would help Picasolar partner with an equipment manufacturer to prove if the technology can be scaled for production in the marketplace.

The SunShot Initiative is a collaborative national effort to drive innovation to make solar energy fully cost-competitive with traditional energy sources before the end of the decade.

“As part of the SunShot award we have access to the testing labs affiliated with the Department of Energy, which is helping us speed up the process to manufacturing phase,” Hutchings said.

OVERWATCH
The new kid on the block in this group of local startups is 17-year-old Josh Moody, CEO of Overwatch. He is finishing his senior year at Little Catholic High School and helping to scale-up his company that was an idea only eight months ago.

Moody’s idea marries video game play with physical outdoor activity such as laser tag, airsoft and paintball. Moody said it’s a $70.4 billion market, $19.1 billion of which is combat video games.

He took his idea to RevUnit, a software development company in Bentonville, in hopes of hiring them to create the application. But Joe Saumweber and Michael Paladino of Red Unit loved the idea so much the three of them partnered together and decided to toss the business concept into the ring for the ARK Challenge.
arkchallenge.org/

In that 14-week competition Overwatch secured a partnership with Cybergun for the gun hardware rights and distribution, which will give them access to online stores and 9,000 store fronts where they do business, including Cabella’s and Wal-Mart, Moody said.

Overwatch was one of three ARK Challenge winners selected in September. Since then, Moody and team have been developing the application, which is 90% complete for iOS and Android smart phones. Along with the application, Overwatch has developed a casing for the phone that attaches to the gun.

“We are working on the final design prototype for the casing that will be manufactured by Cybergun. Once the app is complete we have about 70 users designated for beta testing. We should be to that phase in the next couple of months,” Moody said.

He expects the commercial product launch of the hardware casing will to happen later this summer. The app will be a free download with the purchase of the casing. Overwatch plans to upsell premium gaming services to frequent users for added revenue.

He said the startup has raised $170,000 in capital funding with plans to secure up to $450,000 more in the next few months as they are pitching to several of local angel networks.

“Overwatch is approaching a vital point as we begin testing and prepare to launch the app and case simultaneously later this summer. From idea to manufacturing in just 8 months is a rapid ramp-up,” Moody said.

Wal-Mart’s Mexican business unit, Walmex, did not have much to cheer about last year, as comp sales throughout Mexico were down between 2% and 4% every month. But despite those problems, the retailer plans to invest $1.8 billion in expansion efforts this year.

David Cheesewright, the new CEO of  Walmart International, said consumers around the world are stressed, with “significant slowdowns” in numerous markets, including the faster-growing developing countries.

Fortunately the operating climate in Mexico is showing signs of recovery and Cheesewright said the retailer plans to make hay during the sunnier times.The retailer expects to spend $633.38 million opening new stores, adding 3.7 million square feet of space. Mexican floor space will grow 5%, with Central American stores expanding 7.6%.
The plan calls for $263.9 million dedicated to remodeling and maintenance. It will devote $90.48 million to logistics and $143.26 million to e-commerce and other technology. Cheesewright and his executive team in Mexico made the announcements during an investor conference in Mexico City on Monday (Feb 24).

The Mexican market is important to the retailer’s overall international portfolio which Cheesewright characterized as “big and complex,” operating 6,300 stores in 27 countries under around 300 banners. If Walmart International stood on its own, it’s $136.5 billion in annual sales would make it the world’s second largest retailer behind Wal-Mart, Cheesewright said.

He said the retailer must move faster to ensure it has the products, shopping formats and conveniences that consumers want when they realize they want it.

“We have to be there when the customer arrives,” Cheesewright said.

LOOK AHEAD
Wal-Mart executives note ample growth opportunity as the population decline from recent years has stabilized at 1.2% annual growth in the past two years. The population of Mexico is young, which means there will be a demographic bonus of 10 million more adult consumers within the next five to 10 years. More women are also working, but adds to household buying power, the executives said.

The retailer’s food and grocery business, and small store formats are performing well and there is a push to expand e-commerce toward general merchandise. The retailer launched general merchandise on e-commerce just this past summer.

Cheesewright said Walmex still sees potential pressure on profit margins from a new tax on high-calorie food and beverages, and an increase of value-added tax in border cities from 11% to 16%. 

“We expect moderate improvement in the economy, driven by government investment and increased remittances from the U.S.,” he added.

Walmex execs also continue to look for alternatives to strengthen financial service products for customers. The retailer recently ended its relationship with BBVA Bancomer, who issued co-branded credit cards for the Walmex.

SAM’S TURNAROUND
Sam’s Club in Mexico represents 27% of Wal-Mart’s Mexican business, and 22% of Walmex overall which includes Central America.

The warehouse club reported negative 4.4% comps during all of last year losing sales among its Advantage members and its wholesale members. The retailer operates 156 clubs in Mexico and says there is room for more growth.

There are major changes under way to win back Sam’s Club shoppers throughout Mexico, according to the company. Execs with the retailer said they will focus on price, excitement, bulk and quality for Advantage members who shopped elsewhere last year.

Sam’s Club said it lost sales to department stores, competitor club, and drug stores last year because it did not meet shopper expectations. Going forward Sam’s said it is focused on treasure hunt excitement as well as luxury and fresh consumables — bakery, deli and Sam’s Cafe.

The retailer plans to leverage it’s relationship with Sam’s Club U.S. to work more exclusively with top brands in apparel, food and luxury. Lastly, Sam’s Club Mexico is relaunching its e-commerce site, something that is sorely needed, the executives said.

WALMEX INFO, HISTORY
Walmex operates 2,199 stores under eight banners employing 248,373.
1991: Wal-Mart opened its first store outside the U.S. — Sam’s Club in Mexico City.
1997: Wal-Mart acquired a majority position in Cifra.
2000: The name changed to Walmart de México (WALMEX). 
2006: Walmart de México received a banking license in Mexico.
2007: Banco de Walmart began operations with 16 branches in five states of Mexico. 
2009: Walmart de México acquired Walmart Centroamérica, expanding its presence to six countries and becoming Walmart de México y Centroamérica.

Plans for a third Fort Smith high school are coming under more scrutiny after a Monday (Feb. 24) school board meeting in which a group of concerned residents requested more due diligence be done before the district ultimately decides that another high school is needed.

Plans for a third Fort Smith high school have been discussed for some time, though a formal pitch for the more than $65 million high school was made at a January school board meeting.

At the time, Dr. Benny Gooden said the district needed a new high school due to continued enrollment increases in the district coupled with an eventual plan to re-align the schools to have freshman be on high school campuses instead of the current configuration, which places freshman in the city's junior high schools.

According to Gooden, the district's current population of 14,313 students was expected to blossom to about 17,000 students by the year 2023, which would necessitate the re-alignment.

Sam Sicard, president and CEO of First National Bank of Fort Smith, was among a group to express concerns with the plan. One of the primary points Sicard makes is financial.

"The concern that we have is with all the operational costs of a third high school," he told The City Wire on Tuesday (Feb. 25). "We don't know what the operational costs of Northside and Southside (High Schools) are, but we guess it's a pretty large number. As students increase, you'll increase operational costs."

Sicard said the concern among himself and about 20 others, including several prominent members of the Fort Smith business community, include the costs not only of a building, but also funding extracurricular facilities, such as gyms and activity centers, as well as administrative offices. The additional costs trickle down all the way to office staff and coaches — all taking away from funding that could go toward academics if the district did not construct a new high school.

The group also expressed concern in a memo to the school board about the impact that developing a third high school in Chaffee Crossing could have on the rest of the community.

"If you drive around town, there are all of these areas throughout the center of the city where you see a lot of vacant homes," Sicard said. "If you built a state-of-the-art high school out on the periphery of our community, it will continue to attract people to that area and result in a lot of vacant houses in the core of our city and declining real estate values and declining appearances of many of the properties in the core of our city."

In addition to the two major concerns of costs and deterioration due to outgrowth, Sicard said the group is also concerned about the district's enrollment projections.

"Some of us in the business community have trouble understanding how enrollment will be as rapid as they are saying (it will be) based on what we are seeing in the economy," he said. "We're questioning whether those projections…we're not doubting the continued growth or (need for more) capacity, but it surprises us that it would be that aggressive."

In order to ensure the district makes the best decision regarding future building needs, Sicard proposed that the district bring in an outside consultant to do a facilities assessment for the district to find out if it building another high school would be in the district's best interest or if expanding the existing schools would be more beneficial. He said he and his business colleagues were asking such questions after comparing Fort Smith to similar-sized districts across the state.

According to figures provided by the Arkansas Department of Education, Fort Smith is on par with most of the state's largest districts in terms of the number of students enrolled and the number of high schools in each district. Following is a list of the state's largest districts with their corresponding number of high schools (2012-2013 school year):
• Little Rock Public Schools: 23,676 students, five high schools;
• Springdale Public Schools: 20,542 students, two high schools;
• Pulaski County Special School District: 17,060 students, five high schools;
• Bentonville Public Schools: 15,081 students, one high school (plans are underway for a second high school);
• Rogers Public Schools: 14,757 students, two high schools;
• Fort Smith Public Schools: 14,313 students, two high schools;
• Cabot Public Schools: 10,172 students, one high school;
• Conway Public Schools: 9,733 students, one high school; and
• Fayetteville Public Schools: 9.421 students, one high school.

Sicard said while it may appear that he and his fellow business leaders are against school funding or the millage increase that could come before voters sometime in the next year or two, it is simply not the case. His group just wants to see the most money possible spent on academics, "to see it used in a way to take us to the next level in way of academic achievement for our students."

He said the fact that the board is taking the time to conduct due diligence was appreciated.

"We don't think they're wrong for (proposing) the third high school, we just have concerns and want all alternatives researched and evaluated due to the concern we have," Sicard said. "We're really grateful that Dr. Gooden and the (school) board were willing to listen to our concerns and pursue a study. We're thankful that they're responsive to some of the concerns in the community and we appreciate that."

Gooden did not respond to a request for comment.

Business leaders who signed the memo to the school board include: Bobby Aldridge, Mike Barr, Shannon Blatt, Kent Blochberger, Phillip Bryant, Gary Campbell, Steve Clark, Brandon Cox, Sen. Jake Files, Richard Griffin, Jason Green, Melissa Haynesworth, Scott McClain, Rep. George McGill, Sam Sicard, Pastor Kevin Thompson, Jim Walcott, and Fred Williams.

Executives with consumer packaged goods (CPG ) companies admit they have underestimated how quickly consumers have become acclimated to purchasing food, household and personal care items online. A recent study by Deloitte found many CPG companies may be missing out on a substantial market opportunity.

The research includes an online shopper survey as well a poll of 43 executives in digital commerce positions at CPG companies and in-depth interviews with selected executives.

Executives expect 35% growth in e-commerce sales in the next year and 76% growth by 2017. Conversely, consumers surveyed expect their online purchases to increase 67% in the next year, ramping up 158% in the next three years.

Research co-author Pat Conroy notes that consumers are becoming more comfortable with ordering consumables online, from diapers to vitamins and pet food. Sometimes it’s bulk pricing that attracts them and other times it’s merely the convenience having those products delivered to the front door.

Data show that CPG companies are not as prepared as they need be to take full advantage of this growing opportunity. The study also found that 92% of CPG execs agree that e-commerce is a strategic sales channel, there is a disconnect between the expressed opinions of the executives and the readiness of their companies to execute. Only 43% of CPG execs think their company has a clear, well-understood digital commerce strategy.

Digital commerce could drive incremental sales for CPG companies, yet there is a disparity between executives and consumers that further suggests the channel may be more significant than executives believe, according to the report.

The CGP execs surveyed said only 2% of the past year’s e-commerce revenue came from brand new sales — those which would not have been made otherwise. Consumers said 10% of the online food and personal goods purchased over the past year were completely new. This finding regarding initial e-commerce purchases is a sign to CPG companies that there is opportunity for them to take market share from competitors and increase consumption.

An advantage for CPG companies is that 41% of consumers have no personal attachment to buying items at a supermarket. With the right incentives, this group could be likely be lured away from traditional retailers, the study notes.

“I purchase CPG products online because I can do it at 3 a.m. when I am thinking about it,” according to one consumer survey respondent.

The biggest factors wooing consumers to purchase food and consumables online is free at-home delivery, competitive pricing, and the option for free in-store pick-up. Another consumer surveyed said, “Most of the products I buy online are only available online, or their availability is not consistent in local stores.”

To gain a competitive advantage, transformative opportunities exist for CPG companies across all areas of possible consumer interaction. Not only do 90% of executives see digital commerce improving brand awareness and driving product initial purchase, but it also has an important role in driving repeat purchases and reconnecting with lapsed consumers.

Conroy notes there are a number of critical steps CPG companies can take to capital of the e-commerce channel. First they need to establish a clear and well-understood digital commerce strategy. He also said it is important to collaborate with retailers on social media platforms to build a single view of the consumer.

Lastly, Conroy said having dedicated talent in the digital area is crucial.

Progress on the River Valley Sports Complex inched forward Tuesday (Feb. 25) during a study session of the Fort Smith Board of Directors, but not without serious questions about how the city can protect itself from investing money in the project should it not be completed.

At issue was a proposed agreement between the RVSC and the city of Fort Smith, which outlines contractual agreements and expectations of both parties for the city to eventually purchase the completed facility to be built at Chaffee Crossing.

In changes RSVC would like to see to the agreement, RSVC partner Lee Webb requested the removal of a section requiring a construction bond, a change that City Director Keith Lau said put the city at risk.

City Director Philip Merry came to the defense of RSVC, explaining that Webb and RSVC partner Jake Files were individuals organizing the tournament-level softball facility.

"You've got two citizens who do not have an entity, that they are giving sweat equity to the city to coordinate a benefit to the city and then they have an aggregate group of commitments for in-kind donations and such."

Merry went on to explain that for a group like RSVC, which has no assets, to secure bonding, Webb and Files would have to personally put up collateral to secure a bond, something he said neither men should have to do.

"Lee and Jake are offering up concepts to the city and trying to help coordinate an effort, but I don't think either one of them should be asked to bond and tie up their net worth, which is what a bond would require."

City Administrator Ray Gosack told the Board that in most other situations, the city would require a bond in order to make sure a project involving the city would be completed as promised. But he said the specifics of the situation with RSVC were different enough to not have such a requirement. He added that he was confident in the ability of Webb and Files to deliver on the project, which was sold as a project that would be funded with the passage of a sales tax initiative in 2012.

During discussion about the bonding, the Board came back to an issue discussed during the last study session on the ballfields, which was the cost estimates presented by RSVC and the city. According to Parks and Recreation Director Mike Alsup, the city estimates completing the ballfields to cost between $6 million and $8 million. The cost estimate of RVSC is considerably lower — just more than $4 million.

Due to the differences in estimates, City Director George Catsavis said it sounded like a "big gamble" to him and said he'd need some sort of assurance that RSVC could complete the project for the estimate the group has quoted to the city.

Merry asked, "How can they (Webb and Files) be so wrong?"

In order for the Board to feel secure in funding the project without performance bonds, and to feel comfortable that the eight field facility can be built for stated price of little more than $4 million, the Board requested that formal letters detailing donations, bids and other items that detail how the project will be built and financed.

Webb said he would start securing letters to have to the Board in time for their March 4 regular meeting, which will include a vote on moving forward with the project as part of the Board's consent agenda.

In other business, the Board moved to place a vote on the March 4 agenda that would renew the city's fleet and property insurance. The only change from the previous year to this year is the raising of property insurance deductibles from $25,000 to $50,000 for wind and hail occurrences, an increase that was partially due to the level of catastrophic weather events to take place in the last year or more, according to City Purchasing Manager Alie Bahsoon.

The growth of entrepreneurial programs and financing support seen in recent years in Northwest Arkansas may soon be repeated in central Arkansas.

More than 300 startups launched in Northwest Arkansas in the last five years, raising more than $190 million in funding to do so. Jeff Amerine, director of technology ventures at the University of Arkansas, said the bulk of that capital was raised last year and put the region on the map as a viable place to start a business. (The City Wire announced Tuesday the five Northwest Arkansas-based startups to watch in 2014. Link here for that report.)

Gov. Mike Beebe said during a Tuesday (Feb. 25) event in Conway that he believes fostering innovation is one of the most important investments the state can make to ensure future economic growth. The Arkansas Economic Development Commission contributed $575,000 in seed money for the new regional Innovation Center in downtown North Little Rock. The AEDC grant announced this week is part of a capital campaign for the 15,000-square-foot multi-use facility that will be part business incubator, think tank and technology workshop.

"The total capital budget is $1.1 million for this phase of the project, and we will be announcing additional secured funds in the coming week," said Rep. Warwick Sabin, D-Little Rock, and executive director of the Arkansas Regional Innovation Hub.

INNOVATION HUB
The Innovation Hub strives to increase entrepreneurial activity by creating a network of resources, programs and education opportunities to attract, develop and retain emerging talent while building the state’s economy.

“The nature of our economy is changing, and if our state wants to compete for the best and brightest minds, we need to change the way we think and do business,” Gov. Beebe said in a statement. “The Innovation Hub attracts those who think outside the box and who will forever change the economic climate in the area. They will be our business leaders of tomorrow.”

The entrepreneur movement began to catch fire in Northwest Arkansas as the national economy went sour in 2008, according to Amerine. He said that excitement has spread eastward in past couple of years toward central Arkansas finding continued support from the state economic leaders and local chambers of commerce from Fayetteville to Jonesboro.

Amerine said regional entrepreneurial hubs supported with angel funding networks, mentors and educational opportunities is critical to keep innovative juices flowing.

Josh Clemence, co-founder of the Northwest Arkansas Entrepreneurial Alliance and Iceberg project in Fayetteville, said the Innovation Hub has been a longtime coming for central Arkansas.

“Arlton Lowry and Dustin Williams are two unsung heroes that have been pushing for more cohesion in the entrepreneurial sector in central Arkansas. It’s good to see the wheels are turning,” Clemence said.

ENTREPRENEURIAL CONNECTIONS
The connections between central and Northwest Arkansas’ entrepreneurial communities are close, despite a healthy competitiveness. In the recent ARK Challenge competition held in Fayetteville, four of the nine startups making it to the found round of competition were teams with central Arkansas connections. Overwatch, one of the three winners in the ARK Challenge, has founders in both areas — Josh Moody, a high school student at Little Rock Catholic and Joe Saumweber and Michael Paladino, who founded RevUnit, a Bentonville-based startup. This trio continues to work toward the launch of their gaming application and casing device on target for later this summer.

Clemence said it’s also a positive that the ARK Challenge will be held in central Arkansas this year, after several years of being held only in Northwest Arkansas. He said there are also efforts being made in Jonesboro to foster entrepreneurial advocacy.
arkchallenge.org/

“Our new Innovation Center builds on the best practices from successful national models to create a broad set of resources for people of all ages here in Central Arkansas,” Sabin said. “We will provide the opportunity for everyone to discover and develop their interests and talents and unlock their unlimited potential.”

Sabin also will oversee the Central Arkansas ARK Challenge competition slated for this fall.

The first phase, the Argenta Innovation Center, will include four components:
• The Launch Pad will provide cutting-edge tools and technology for professionals and amateur tinkerers alike. There will be 3-D printers, laser-cutting machines, and other equipment that can be used to prototype inventions and refine products. Educational opportunities will be provided for people of all ages as well as support for local manufacturers and corporations that want to solve problems or provide additional training.

• The STEAM Lab will be operated in partnership with the EAST Initiative to offer STEM (science, technology, engineering, mathematics) education across a variety of ages and disciplines. Expertise in these areas is critical for Arkansas’s workforce to be prepared for jobs in the 21st Century. This classroom and laboratory will have advanced equipment and technology along with the nationally-recognized training in computer coding, programming, and computer-aided design (CAD) that EAST has provided to Arkansas students for the last 20 years.

• The Silver Mine is a co-working space for entrepreneurs and small business owners looking for networking and enrichment activities. It will also be the home to vertical business acceleration programs that will seed and mentor promising new enterprises from Arkansas and around the world. The Silver Mine will be able to incubate and give birth to a steady stream of new businesses, where ideas can connect with capital and other resources.

• The Art Connection is an after-school and summer work program for high-school students designed to develop leadership and innovation through hands-on training in the visual arts industry. Modeled after the successful Artists for Humanity program in Boston, Massachusetts, the Art Connection works with arts organizations, local artists, business owners, city government and others in the community to provide practical skills for under-resourced youth.

The innovation center recently received a $250,000 grant from the Delta Regional Authority.

“We are proud to join Governor Beebe and AEDC in support of this program and to invest in what will be a great opportunity for Arkansas’ small businesses and entrepreneurs,” Chris Masingill, federal co-chairman of the Delta Regional Authority, said in a statement. “The Innovation Hub will provide the programming and resources necessary to further our mission of creating jobs and helping to build an innovative and technologically-advanced environment for our region’s entrepreneurs.”

Revenue from Arkansas’ 2% tourism tax set a record in 2013 by reaching $12.716 million, and the state’s tourism chief is predicting that 2014 could be even better for Arkansas’ tourism and travel sector.

The 2013 collections were up 2.5% compared to the $12.405 million in 2012, and well ahead of the $11.378 million slump in 2009 when national economic conditions proved tough on Arkansas’ tourism industry.

In an interview with Roby Brock for the upcoming issue of Talk Business magazine, Richard Davies, executive director of the Arkansas Parks & Tourism Department, said the recent spell of cold weather around the country may result in people wanting to get outdoors when temperatures rise. Combine that with what Davies said is an improving consumer confidence, and the state could see more travelers in 2014.

“I think we’re going to have a good season this year. I think holding on during the bad times was a victory,” Davies said in the Talk Business interview. “From what I can tell, if the weather will let us alone for a while, we’re going to have a good year. I think people are a little more sure about the economy. I think they’ve got a little money in their pockets. And I think after this winter, they may have some severe cabin fever they want to solve. So I’m looking forward to a good year.”

MIXED RESULTS
Although collections were up in 2013, results were mixed around the state. For example, the four largest cities in Northwest Arkansas reported $5.32 million collected in hospitality taxes for the full year, up from the $4.99 million during 2012. The cities also reported 6% gains in their fourth quarter hospitality tax receipts, compared to the prior year. Fayetteville, Rogers, Springdale and Bentonville collected $1.31 million in hotel and food taxes during the months of October, November and December.

While October and November were strong months, inclement weather has since prompted cancellations and lackluster traffic among business and leisure travelers, said Roger Davis, general manager of the Springdale Holiday and Convention Center.

Hotel operators across Northwest Arkansas have recorded revenue in excess of $128.564 million during 2013, up 10.7% over 2012, according to Smith Travel Research.

Hospitality tax collections were not as strong down the road from Northwest Arkansas. Collections in Van Buren during 2013 totaled $423,221.83, remarkably close to the $423,222.91 during 2012. December collections were $32,071, down 1.2% from the $32,451 in December 2012. The city collects a 1% tax on lodging and a 1% prepared food tax.

Maryl Koeth, executive director of the Van Buren Advertising & Promotion Commission, said wintry weather in December likely resulted in the monthly decline. She said the January tally will also see a weather effect. Koeth said she expects 2014 tourism activity to be similar to 2013.

“Lodging ended the year above last year, but restaurants were down and are staying down. Due to the economy, specifically the smaller paychecks, we continue to see a change in the dining out patterns of consumers. I don't see that changing in the near future,” she said.

Collections in Fort Smith during 2013 totaled $731, 057, down 2% compared to the same period in 2012. The gap in collections improved through the year with first quarter collections were down more than 6% compared to the 2012 quarter. For the fourth quarter, collections were up 0.62% compared to the 2012 quarter. The city collects a 3% tax on lodging.

TOURISM INDUSTRY EMPLOYMENT
The rise in overall tax collections is reflected in job numbers for the industry. Arkansas’ tourism sector (leisure & hospitality) employed 103,400 during December, down from a revised 103,700 during November, and above the 102,900 during December 2012. At a revised 103,700, the November employment tied a record for the sector that was first reached in January 2013.

Montine McNulty, director of the Arkansas Hospitality Association, noted in the Talk Business interview that the tourism industry also is a job engine for the state.

“One thing about our industry is we continue to need people. It’s not going to be replaced by robotics or anything else. We’re in the service industry and we’re going to have to have people,” McNulty explained.

Travel and tourism industry employment also reflects tax collections in Northwest Arkansas and the Fort Smith metro area.

Employment in the Northwest Arkansas tourism industry was 21,400 during December, down from 21,900 in November and up from 20,400 during December 2012. September employment of 22,300 was a new record for the sector.

Employment in the Fort Smith metro tourism industry was 9,000 during December, down from 9,100 in November and above the 8,700 in December 2012. The sector reached an employment high of 9,800 in August 2008.

O.K. Foods is under new leadership after the resignation of CEO Paul Fox, but the company is keeping quiet as to why Fox may have left the company.

Donna Miller of O.K. Foods confirmed in a telephone call with The City Wire that Fox had resigned from the company, but declined to provide details or the date his resignation became effective.

"If there is anything to be said, I'm sure someone will call you back," she said Wednesday (Feb. 26). "I can't make a statement on any of that. I was just told that he resigned. I'm not privy to any of that."

According to Fox's LinkedIn profile, he came to O.K. Foods in January 2012 after serving for nine months as managing director of Sao Paulo, Brazil-based Marfrig Group, one of the world's largest meat producers, and president and CEO of Dickinson Frozen Foods for about four years.

NEW CEO
With Fox's departure, Senior Vice President of Sales and Marketing Trent Goins has been promoted to president and CEO of the company, according to his LinkedIn profile. Goins' father if former O.K. Industries CEO Randy Goins.

Goins started his career at O.K. Foods as a management trainee in January 2003 before becoming a regional sales manager in January 2005, a position he held for four years. During that time, he has served on the board of the National Chicken Council and the Arkansas, Oklahoma, and Missouri Poultry Federation. Goins is currently an executive committee member of the National Chicken Council.

Prior to joining O.K. Foods, Goins was a legislative assistant for agriculture and trade policy in the office of former U.S. Rep. Marion Berry, D-Gillett.

The Fort Smith-based O.K. Foods was founded in the 1930s as a feed manufacturer, according to the company's website. It eventually moved into processed poultry in the 1950s before opening a state of the art research and development facility in the 1990s.

On Nov. 11, 2011, Celaya, Mexico-based Industrias Bachoco, itself a poultry producer, closed a deal to acquire O.K. Foods and its more than 3,000 U.S.-based employees. The deal, estimated at $93.4 million, made the combined company the third largest chicken producer in North America, according to O.K. Foods.

FOX HISTORY
Fox came to Dickinson after a 17 year tenure at Tyson Foods that included stints as vice president of international operations and vice president of processed meats operations. It was during his tenure as vice president of international operations that Fox and several other Tyson executives were reported to have come under investigation for alleged bribery, according to a June 2011 article in The New York Times.

The Times article detailed memos that alleged possible payments in order to keep inspectors at Tyson's Mexican plants  "from making problems." Investigations by the United States Department of Justice and the Securities and Exchange Commission followed, though no charges were ever filed against Fox or any of the other Tyson executives who were investigated.

Additional phone calls and e-mails to O.K. Foods seeking comment for this story were not returned.

Prospects of an outside company managing the golf course at Ben Geren Golf Course appear dim as two Sebastian County advisory boards have voted not to recommend moving forward with a proposal from Orlando, Fla.-based Cypress Golf Management to take over control of the golf course from the county.

According to County Judge David Hudson, the proposed rate of $6,000 per month to manage the facility and other high fees were just too much for both the Parks Advisory Board and the Golf Stakeholder Committee, both of which met at different times Tuesday (Feb. 25).

"I think it was just basically that the proposal required an additional allocation of $92,400 a year with the county continuing to carry the budget and paying a percentage of any capital improvements. So what does that offer the county moving forward at this point versus continuing to operate the golf course and putting $90,000 more into the course?"

The plan, unsealed in the Quorum Courtroom of the Sebastian County Courthouse on Feb. 19, was the only proposal received after the county put out advertising for bids to lease the golf course from the county. The proposal itself was opposite of what the county desired to see in proposals since it charged the county not only the $6,000 management fee, but also up to $1,700 per month in travel expenditures as well as the other expenditures Hudson mentioned.

Justice of the Peace Danny Aldridge, whose district includes Ben Geren and its golf course, did not sugar coat his opinion of the proposal when reached for comment Wednesday (Feb. 26).

"The proposal that was submitted was a management agreement rather than a lease agreement proposal. This is not what the county was looking for. All this would do is add debt to the budget. This would not benefit the county or taxpayers in any way,” he said.

With both advisory boards voting to not recommend entering into the Cypress agreement, Hudson said he would work with both bodies to develop a proposal to take to the Quorum Court at its March 18 discussion meeting that would address how the county can move forward.

As part of the proposal to be developed by the advisory boards and Hudson, he said marketing will be a large part of the plan as will ideas for how to increase play at the course, which sees competition from the Deer Trails Golf Course at Chaffee Crossing, as well as country clubs in Fort Smith.

To be more competitive, Hudson said another part of the plan will be to change the large number of various green fees at Ben Geren.

"That is one of the goals it to simplify our rate structure. We have daylight and twilight rates, a weekend rate, packages. We are trying to simplify those rates in consideration of the regional competition."

The golf course, which lost the county about $180,000 last year, is projected to lose tens of thousands more this year.

For that reason, Aldridge said whatever proposal is presented to the Quorum Court should be detailed with specific proposals instead of broad ideas. He added that the Court would also need to give the golf course time to make a success of whatever proposal is presented and possibly adopted.

"I don't think it would be fair of the Quorum Court to say you have one year to pull this out," he said. "If they come back with a two or three year plan and showed consistent strides of getting there, I think that would be acceptable to most of us. But they have to come with a hard, fast plan and a plan that is achievable. If they say their goal is to increase rounds, that don't get it. They have to (have hard numbers and projections) and this is how we will go do it."

The Cypress plan, with recommendations from both advisory boards against it, and the proposal from Hudson and the advisory boards will be under consideration during the March 18 meeting of the Quorum Court.

Aldridge reminds residents that the meeting is open to the public and there will be an opportunity for public comments during the meeting.

The Barling Board of Directors on Tuesday (Feb. 25) passed a resolution that officially requests the Arkansas Municipal League to lobby for legislation that would change a nearly 80 year old state law restricting Barling from voting on whether it wants to be a wet or dry city.

The vote on the resolution comes after a November 2012 vote by residents to turn the city wet was ruled invalid due to Arkansas laws which states cities in a dry county, such as the lower township of Sebastian County, cannot choose to go wet. The same statue allows cities in wet counties, such as Washington County, to vote on whether to stay wet or go dry.

Matt Ketcham, city attorney for Barling and an attorney for Fort Smith-based Nolan Caddell Reynolds, said the city's decision to ask the municipal league to lobby for the legislation on their behalf was about making state law fair.

"Our argument the whole time has been that it's unfair (to deny Barling the right to vote on this issue). It's a violation of the Equal Protection Clause of the Constitution. There is no reason to discriminate against some cities and not others. There's no reason to deny that right to some cities."

Ketcham said the city is seeking the assistance of the Arkansas Municipal League due to the overwhelming opposition any sort of change in the legislation is likely to receive.

"The last time (changes in legislation were proposed in 2013), there was a lot of opposition to it both from the existing alcohol lobby and all the people who run liquor stores. The last thing they want to see is more stores. It cuts into their business. They want to be the only game in town, especially if they are on the border (of a wet and a dry county)."

Don Zimmerman, the executive director of the Arkansas Municipal League, said in a telephone call Wednesday (Feb. 26) that Barling's desire to see a change in state law is among the few alcohol-related issues to come to the League lately.

"It's kind of yes and no," he said. "Barling is the only one that I've heard of in their particular circumstance. I have heard from a couple of retirement communities wanting to sell mixed drinks. But Barling is just wanting to go wet, I guess, and have liquor stores and all."

The communities of Fairfield Bay, Horseshoe Bend and Cherokee Village are not asking for the ability to sell alcohol outright, but instead are wanting to have the ability to sell mixed drinks without a private club license, which is how many businesses in dry counties currently get by laws limiting the sell of alcohol in dry counties.

As for how the Municipal League will determine whether to take up lobbying on the issue, Zimmerman said a decision will be made at the group's annual convention in June when its resolutions committee votes on various resolutions submitted by Arkansas cities. A vote on the recommendations of the resolutions committee will take place June 20 at the Municipal League's annual business meeting.

Ketcham said in order to get the League to possibly take up Barling's cause, the resolution approved by the Barling Board has a "plan B" which would allow for the possibility of different legislation that wouldn't open a flood of wet/dry votes, but would still work in Barling's favor.

"If they are not willing to back the proposal, then how about we amend the existing statute to allow cities that are part of a split district county (like Sebastian County) and are abut and contiguous to the wet part (of the county) to vote. A town like Greenwood would still not be able to vote because they are not abut to the part that is wet, but that would fit a town like Barling which is contiguous and abuts the Fort Smith district of Sebastian County."

Ketcham said while Barling can try to lobby state representatives and state senators on its own, the town's elected officials realize that there is strength in numbers.

"When the legislature is in session, (the Municipal League is) lobbying on all bills dealing with municipal government. It would help a lot if the Municipal League were throwing its weight around on this measure instead of being neutral or opposing the measure."

The annual convention of the Arkansas Municipal League convenes June 18.

No matter your thoughts about the global retail giant that is Wal-Mart Stores Inc., there is no denying the boost this Bentonville-based company can have on a small supplier’s balance sheet.

Latham, N.Y.-based green energy company Plug Power Inc. announced that it recently received a purchase order from Wal-Mart to roll out its hydrogen fuel cell technology that will power electric fork lifts at six of Wal-Mart’s North American distribution centers.

Wall Street took notice of the deal and pushed Plug Power shares 13% higher in heavy trading on Wednesday (Feb. 26). Power Plug shares (NASDAQ: PLUG) closed at $4.41, up 51 cents from the prior day. One year ago PLUG shares were 12 cents, surpassing the $1 range in December.

Chris Sultemeier, executive vice president of logistics at Walmart U.S., announced various energy project and efforts to reduce costs at distribution centers during the retailer’s annual sustainability milestone meeting in Bentonville last week.

The Plug Power technology has been used in an Ohio distribution center and in Canada, but the first of six more sites will come online by the second quarter of 2014, the company said. Wal-Mart ordered 1,738 GenDrive fuel cell units to be deployed over the next two years, along with GenFuel infrastructure construction and hydrogen fuel supply and a six-year service contract for each site using the green energy.

Sultemeier said the logistics division continues to strive for energy savings that help improve the retailer’s overall bottom line. He said all distribution center warehouses and fulfillment centers are converting to LED lighting that will save $10 million annually in utility costs. This expansion in hydrogen fuel cell will also drive profits higher.

“We have 2,000 of these in use in our distribution centers in the U.S. and Canada, the largest fleet of its kind in the world,” Sultemeier said. “By doubling the fleet efficiency of our trucking operations we shipped 658 million more cases, driving 300 million less miles and saving 43 million gallons of fuel.”

Power Plug noted in its statement that GenDrive hydrogen fuel cells “have universal appeal in material handling applications because they can contribute to an increase in productivity.” The company said workers will spend less time fueling or powering up the forklift and more time operating the machine. GenDrive fuel cells also have no exhaust emissions so that they can be a component in implementing corporate environmental initiatives, the release states.

"This agreement is a tripling of Walmart's commitment to Plug Power's fuel cells, and is encouraging because it comes from a company with so much experience using our product," Andy Marsh, CEO at Plug Power, said in the statement. “This is a milestone for Plug Power and its ongoing business relationship with Walmart. Plug Power's GenDrive products have a positive impact on the productivity of our customer's operations. We have proven to be a trusted partner and are confident that GenKey will enhance Walmart's material handling operations."

Plug Power also provides products to Sysco, Procter & Gamble and Mercedes Benz.

Thousands of December and January flight cancellations around the country because of winter weather did not have a negative impact on travel out of the Northwest Arkansas Regional Airport (XNA).

Between Dec. 1 and Feb. 18, there were 102,000 weather-related flight cancellations, according to masFlight tracking data. These events not only frustrated travelers, but are expected to cost airlines between $250 million and $500 million, according to industry analysts.

Regional carriers like those that serve XNA were the most impacted from the onslaught on cancellations. ExpressJet led in cancellations with 11,658, according to FlightAware. American Eagle has been the second hardest hit with 11,235 cancellations during the 11-week period.  Other airlines impacted include: Southwest with 7,323 cancellations; American, 6,954; United, 6,731; Delta, 6,253; Skywest, 4,760; US Air, 3,496; and JetBlue, 3,378.

However, XNA reported December enplanements rose 2.9% from the prior year and total passenger count was up 7.97% in December. In January, XNA reported 39,990 enplanements, up 7.25% from a year ago. Total passengers served by the airport equaled 74,102 last month, an increase of 6.97% from a year ago.

“All I can say is we have been busy here. The parking lot has stayed full and we have had just a few cancellations dating back to December, “ said Scott Van Laningham, executive director at XNA.

He said while there were business travelers who could not fly to Northwest Arkansas from other other cities, those return flight seats were filled by others traveling business class.

CARRIER RECRUITMENT
Van Laningham said the local airport officials continue to meet with any carrier they can to try and secure more routes for XNA and help reduce fares. Airfare is typically up to 30% higher at XNA than other local airports because of limited seat capacity and strong business demand.

“We are well-aware that more competition is needed to bring down overall fares at XNA.  But there really is very little expansion going on now. While the economy is stronger and improving here locally, most airlines don’t feel that’s the case on the national level. That is holding back expansion, in my opinion.” Van Laningham said.

Southwest and Frontier Airlines have agreed to talk to XNA officials, according to local sources, but there is no indication that either of the carriers will add an XNA route.

Southwest Airlines is pulling out Branson and Jackson, Miss., in June, citing the level of local demand does not fit the carrier’s profitability standards. Key West, Fla., also is being dropped from Southwest. Key West and Branson were picked up with the company’s merger of AirTran Airways.

Van Laningham said one major difference between the Branson market and Northwest Arkansas is the business base that travels to and from Highfill during the week. Branson is largely entertainment based, with more leisure and vacation oriented travelers, he said.

The experiment stopover in Branson was a short one for Southwest, who just began flying there in March of last year. Those routes include two flights to Chicago and one to Houston and Dallas. The Northwest Arkansas business community would love to capture those routes, but XNA officials are tight-lipped on how the talks are going.

Van Laningham did say that while airline expansion is nearly non-existent these days, Frontier recently announced six new routes, including three new nonstop routes from St. Louis. Frontier is taking hub space vacated by American Airlines and will compete with Southwest, which operates nearly three dozen destinations from St. Louis.

Despite declining overall revenues, Windstream Corp. saw its bottom line improve as cost savings and strategic growth areas boosted its fourth quarter and full year profits.

Little Rock-based Windstream Corp. posted 2013 fourth quarter earnings of $118.4 million, a huge improvement from $10.1 million one year ago. Revenues for the quarter ended Dec. 31, 2013 were $1.49 billion, down three percent from $1.534 billion in 2012′s fourth quarter.

For the full year, Windstream reported net income of $241 million on revenue of $5.988 billion compared to a $168 million profit on revenue and sales of $6.139 billion one year ago.

“2013 was a solid year for Windstream. Our business team finished the year strong, generating sequential revenue growth again, and our consumer team continued to grow broadband revenue and deliver steady results, all of which better position us to achieve our goals and deliver value to shareholders,” said Jeff Gardner, president and CEO.

Windstream announced last week that it would slice 400 jobs from its nationwide workforce in an effort to remain lean and to position the communications firm for future growth, particularly in its broadband and business services which showed steady growth.

Traditional landline revenues – under heavy pressure from the wireless industry – continued to slump. Gardner said Windstream’s efforts are to keep the legacy business in the black, but to capitalize on business services and broadband growth.

“We are executing a growth-oriented strategy while also managing our legacy business for profitability. This combination is gradually stabilizing top-line trends and generating substantial cash flow. It is our continued belief that our capital allocation strategy strikes the right balance among investing in the growth drivers of the business, paying an attractive dividend to our shareholders and reducing debt over time,” Gardner said.

Financial notes included:
• Total business and consumer broadband revenues now represent 73% of the company’s total revenues.

• The company deployed fiber to approximately 2,000 wireless towers, opened three data centers and expanded and enhanced its broadband network throughout the year.

• During the year, Windstream reduced its debt by more than $200 million.

• The company also refinanced almost $4 billion in debt in 2013, which extended debt maturities and lowered cash interest expense.

• Paying $594 million in dividends to shareholders.

Windstream shares (NASDAQ: WIN) closed trading on Wednesday (Feb. 26) at $7.93. The company’s stock has traded between a low of $7.18 and a high of $9.17 in the past year.

One candidate seeking re-election to the Arkansas House of Representatives is trying a relatively new way to reach out to voters in the lead up to November — a mobile app available through the Google and Amazon app stores.

Rep. David Meeks, R-Conway, said apps, which have been used in presidential campaigns and some other large out of state races in recent years, were just another way to reach out to voters.

"An app is something that's been around, but for whatever reason, it's not really been used."

He said the use of an app comes down to "convenience."

“Everything is just right there. They don't have to go…basically it's just ease of use. They won't have to use two different apps – not a Twitter app and Facebook. It's just a single button. It's about simplicity more than anything else,” Meeks explained about his app.

The app features sections similar to a campaign website — issues, legislative actions, photos, videos, contact information and social media links.

Skot Covert, director of digital media at Impact Management Group, said the use of apps is a trend that's been on the uptick for the last four to eight years, since the advent of the smart phone. He said more campaigns, especially on the local level versus the national or statewide level, are starting to make use of app technology due to drops in price for development.

"You see a lot of campaigns that are now able to get their foot in the door with an app because the prices have gone down so much," he said. "They can purchase an app (for a good price). Back when smart phones were coming on the market, the costs to develop an app were significant. It's now cost effective to do it. You're seeing a lot of people like (David) Meeks taking those tools and using them in their campaigns."

Meeks said he is trying to reach voters in his district, which includes the city of Conway and rural parts of Faulkner and Perry Counties, using the technology that is right at their finger tips.

"Conway is technology oriented (with several colleges and technology companies). So I think it's a good idea. It's just another tool to be able to reach out to voters, even out in rural areas, where there's good cell phone coverage. And a good portion of my (constituents) have smart phones. Even if they don't, there is a way to access the app by just going to the internet."

Covert said while Meeks and other candidates may try to use app technology to reach new voters, many candidates who have used apps in past campaigns have found the technology to be a good way to engage volunteers through push alerts and engagement with the app.

"I don't know if it reaches new voters, but if you have a volunteer base of 50 people that are committed to seeing you elected or re-elected, you are able to arm them with talking points you want them discussing within your community. Something as simple as push notifications can have a great affect on your get out the vote operations. You want to make sure on election day, they don't forget to vote,” Covert said.

He said the use of apps in addition to social media, which he admits can at times feel like an "echo chamber" of politicos and journalists, can really make a difference

"We do live in this echo chamber, but with tools like this it allows you to equip your die hard supporters with the tools they need to effectively communicate your campaign's message."

As for the future use of the app, Meeks said he'll experiment with it and see what comes of it. So far, he's had 19 individuals download the app. And while it is only available in the Google and Amazon app stores, he's got his eyes set on Apple. Meeks said he is just looking to see how the app works for him during the 2014 election.

"I'm fine being the guinea pig and trying it out. I talked to other candidates and they thought it was intriguing. Hopefully it catches on as another tool to keep up with constituents and voters."

Goodwill Industries of Arkansas continues its aggressive growth next month as it opens its eighth Northwest Arkansas location location in Siloam Springs on March 6.

The 15,000 square-foot donation center, career services center and retail store, located at 1001 South Mount Olive St., in the Highland Park Shopping Center, will be the non-profit's 36th location in the state.

"Goodwill continues to expand in northwest Arkansas because we want to make it as convenient as possible for people to be able to shop and donate with us," said GIA President and CEO Brian Itzkowitz.

According to Goodwill's Public Relations and Community Engagement Manager Rebecca Brockman, the growth of the organization has been not only steady, but rapid, since the financial collapse in 2008 and the subsequent Great Recession.

In figures Brockman provided to The City Wire, just from 2008 to 2009, Goodwill saw a 110% increase in the number of individuals served through the organization's career services centers and retail stores. From 2008 to 2013, that number ballooned 683.8% from 1,068 served in 2008 to 8,371 served in 2013.

During the same period, the number of people placed in jobs grew from 89 in 2008 to 1,279 in 2013, an increase of 1,337.08%. She added that "Goodwill has created approximately 500 jobs in the last five years. We are growing due to meet the demand of people in need."

The jobs created vary, but consist of of many individuals staffing the retail locations where anyone can purchase donated goods at discounted prices. Earnings from the donated goods, which are tax deductible, go back into Goodwill's career training services provided at their locations across the state.

"Three pairs of jeans equals 30 minutes of career training at Goodwill," she said.

Brockman said as the economy has continued to be shaky, those donations have been vital to the organization's mission, with a goal this year to serve 10,000 people.

"But we can’t meet that goal without donations," she said.

Among the programs Goodwill has been active in promoting is one that helps individuals leaving jail or prison to transition back into cities and towns "and make positive contributions."

According to the organization's web site:
• TEO (Transitional Employment Opportunity) participants are employed at Goodwill’s donation processing center where they acquire marketable skills processing donated textiles and computers and working on sub-industrial contracts from local businesses;
• Beyond building a resume and developing positive work behaviors, participants earn a weekly paycheck; and
• Once considered job ready (in no more than 16 weeks), a team of career specialists help them to search for competitive employment in the community.

The TEO program is just one of many that sees a constantly revolving door of staff at Goodwill's various locations, though Brockman has previously said an employee/trainee giving notice that they have found a new job is a sign that the company's training is working and helping those individuals move on to fulfilling careers to support themselves and their families, adding that Goodwill views turnover as a good thing.

As the organization prepares for its Siloam Springs opening, Brockman reminded the public that Goodwill's need is greater than ever, especially since donations have been down this year.

"Goodwill’s donations were severely affected by the winter weather this past season. We are need of donations and encourage people to do some pre-spring cleaning and get in those closets, garages and storage spaces."

Itzkowitz echoed Brockman's sentiments.

"Donations are the lifeblood of the organization. The funds generated through the sale of goods go right back into the Siloam Springs community to help people who need job readiness training and education."

Goodwill's grand opening of the Siloam Springs location will occur at 8:45 a.m. on March 6. Grand opening festivities will include the chance to win a 42" high definition television, as well as gift cards to Goodwill.

Arkansas’ residential real estate sector ended 2013 on a good note and the miserable winter weather of January was not enough to slow the pace of home sales in the state’s four largest markets.

The number of homes sold in Arkansas’ four largest metro areas totaled 20,644 during 2013, the first time since 2007 that the tally topped 20,000 and the first the value of the homes sold in the four markets topped $3 billion.

The City Wire’s Arkansas Home Sales Report captures home sales data in the state’s 14 most populated counties within the state’s four largest metro areas — Central Arkansas, Fort Smith area, Jonesboro/Northeast Arkansas and Northwest Arkansas. The report, which records closed sales, accounts for between 70% and 75% of total Arkansas home sales.

The report, which counts the number of sales closed in January, is sponsored by Fort Smith-based Weather Barr.

JANUARY NUMBERS
January home sales totaled 1,204, up 6.55% in the four markets. Although the combined home sales activity was up in all four markets during January, the combined average price was down. The average price per home in the four markets was $144,599, down 5.58% compared to January 2013, and down 8.03% compared to January 2012.

There were 577 homes sold in central Arkansas, up 3.96% compared to January 2013, and up 30.84% compared to January 2012.

January home sales totaled 393 in Northwest Arkansas, up just 0.26% compared to January 2013, and up 15.25% compared to January 2012.

Jonesboro area home sales totaled 122, up 17.31% compared to January 2013 and up 48.78% compared to January 2012.

In the Fort Smith area, home sales totaled 112, up 41.77% compared to January 2013, and up 43.59% compared to January 2012.

The value of the sales during January were down 3.68% in central Arkansas, up 0.47% in Northwest Arkansas, down 0.97% in the Jonesboro area, and up 44.29% in the Fort Smith region.

THE REGIONAL PICTURE: 2013
Central Arkansas — Home sales
January 2014: 577
January 2013: 555
January 2012: 441

Fort Smith area — Home sales
January 2014: 112
January 2013: 79
January 2012: 78

Jonesboro area — Home sales
January 2014: 122
January 2013: 104
January 2012: 82

Northwest Arkansas — Home sales
January 2014: 393
January 2013: 392
January 2012: 341

The top five counties in terms of January 2014 home sales:
Pulaski — 259, up compared to 238 in 2013
Benton — 253, up compared to 232 in 2013
Washington — 140, down compared to 160 in 2013
Saline — 105, up compared to 88 in 2013
Craighead — 98, up compared to 81 in 2013

Link here for a PDF document of the January 2014 data.

SALES, PRICES SHIFT
Perhaps one of the more perplexing things about the January report is that sales were up 6.55% compared to January 2013, but average sales prices were down by 5.58% – a drop of slightly more than $10,500 from the same time last year. More intriguing still is the fact that sellers didn't generally slash their asking prices for homes to attract buyers.

Pulaski County, for example, is typical in that regard. Sellers averaged 95.91% of their list prices for homes, a number that is slightly better than 95.88% a year ago. The size of the homes sold didn't decrease dramatically either, but the sales prices did. The average price per square foot of homes sold in Pulaski County was $74.38, significantly lower than $81.25 a year ago.

The City Wire Economist Jeff Collins said one can't read too much into January's numbers because it is just one month and factors such as cold winters keeping people from shopping for homes can skew the data a bit. He said it's safer to get the data from the first quarter of the year in place before looking for trends.

Still, he said one of the things driving the market could be that incomes haven't increased substantially, unemployment numbers have remained steady, and some people may be more cautious about taking on debt than they were a few years ago before the recession took hold. Those factors, he said, could add up to a situation where there is downward pressure on home prices – people are only willing to pay so much and sellers are simply adjusting to the market when pricing their homes.

The end result is no surprise, he said, which is that lower prices mean more homes are sold.

RENTAL DEMAND IMPACT
Jackie Twillie of Twillie Realty in Little Rock said it is difficult to pin down what exactly was driving markets in January. She said the numbers are coming up and people are still able to get loans, so that is good news and reflects well on the overall economy.

One phenomenon she's seen is that the cost of new homes dropped in 2013 a bit as builders rushed to meet the demand for mid-priced homes. At the same time, investors looking for deals on foreclosures snapped up a lot of homes and then turned those into rental properties. Twillie said the demand for rental homes is rising and that has prompted investors to start pulling foreclosed homes off the market to meet that demand.

The increased number of investors picking up homes for a bargain may have had a small impact on prices, she said. The same may be true of tight credit standards and slightly rising interest rates – factors that directly influence how much financing buyers can get when applying for mortgages.

Amber Gill of Exit Realty in Paragould said prices in the Jonesboro area may have been impacted by the popularity of the federal Rural Development program. Under that program, people are typically buying homes with no money down and, as such, sellers are holding stronger to purchase prices while still trying to list their homes at prices that will attract buyers.

She said there was a fear that the federal Rural Development loans would dry up in her area this year as the definitions were supposed to change so that cities with populations of more than 25,000 in the 2010 Census were to be removed from eligibility. Paragould was one of those cities that would have lost that eligibility, and Gill said the availability of Rural Development loans have helped attract buyers to that city.

At the end of January, however, Congress passed a measure that will keep all cities eligible for Rural Development loans in that program until Oct. 1. On that date, the population limits for eligibility will be raised from 25,000 to 35,000, meaning that areas where that mortgage program is offered will likely not see it vanish until at least 2020 when Rural Development definitions are to be considered again.

January was laced with some bitterly cold, snowy days but city permit offices across the region report steady activity in residential building and a smattering of commercial projects on tap with the Walton family commercial mixed-use space in downtown Bentonville being one of the largest projects.

Another interesting permit – issued Wednesday (Feb. 26) – in Bentonville was to Walgreens for a store at 1311 S. Walton Blvd., directly across from a Wal-Mart Convenience Store and gas station which is slated for completion later this spring.

While Walgreens is no stranger to Northwest Arkansas, the company has stayed away from Bentonville until now. Walgreens already operates 13 stores in Benton and Washington counties.

The region’s four largest cities in Northwest Arkansas issued permits valued at $46.087 million in January, up 77% from the year-ago period. The bulk of that increase —$20.356 million — is linked to the multi-story, mixed-use development and parking garage project by the members of the Walton family. This new Midtown Center will be anchored by a 31,000-square-foot Walmart Neighborhood Market, that first announced by city leaders in the fall of 2012.

New commercial projects issued by the cities of Fayetteville, Springdale, Rogers and Bentonville were valued at $25.968 million in January. This compared to $5.054 million in new commercial permit values reported a year ago.

There were three new projects slated for Fayetteville:
• Northwest Health Clinic, 3399 W. Black Forrest, $2.288 million;
• Butterfield Trail wellness center, 1923 E. Joyce Ave., $1.219 million; and
• Butterfield Trail assisted living center, 2073 Overland Loop, $2.104 million.

Springdale and Rogers did not issue commercial permits last month. Bentonville’s new commercial permits were the three projects connected to the Walton family.

Troy Galloway, director of economic development for the city of Bentonville, recently said he expects the commercial sector to pick up some steam this year, following on the heels of robust residential activity recorded since the start of 2012.

Western Rogers is a flurry of construction with the Longhorn Steakhouse slated to open by April, the Walmart AMP looking at a summer opening and Great Southern Bank hoping to move into their new location by early fall.

Other proposed permits made to the Arkansas State Health Department in recent weeks include:
• DWS Designer Shoe Warehouse, 2203 Promenade Blvd, Rogers;
• La Favorita Michuaca, 1803 S. Eighth Street, Rogers;
• Mercy of Northwest Arkansas clinic, 1225 E. Centerton Blvd., Centertown;
• One Eyed Jack’s Fine Tobacco Lounge, 2308 S.E. 28th St., Bentonville;
• Popeye’s Chicken, West Sunset Ave., Springdale;
• MedExpress, 1160 S. 40th St., Springdale; and
• Dickey’s Barbeque Pit, 3316 W. Grove Rd., Suite. 4, Fayetteville.

Permits made with the health department generally precede official city issued construction permits by two to three months and provide a forward look.

FLAT RESIDENTIAL PACE
Homebuilders across the regionstayed busy since 2012 and they don’t see that changing this year. The local residential building sector has likely reached a sustainable pace, according to contractors interviewed by The City Wire in recent months.

The region’s four largest cities issued 70 new construction permits last month, down from 90 issued in the year-ago period. That decrease was linked to just 5 new permits issued in Rogers during January, plummeting from the 33 issued a year ago. The other three cities reported flat activity year-over-year.

Permit values among the reporting cities totaled $20.119 million for new residential single family homes. This compared to $20.888 million a year ago. The values were flat year-over-year in spite of the 20 fewer home starts.

The value numbers were skewed slightly during January because of a few custom homes in Bentonville valued between $617,000 and $756,000. In addition, there were more homes valued above $400,000 in Fayetteville and Bentonville than a year ago.

Residential Permit Values (January)
• Bentonville: $8.914 million, up 47%
• Fayetteville $5.170 million, up 23%
• Springdale: $4.979 million, up 6.9%
• Rogers: $1.056 million, down 82.3%

SENTIMENT, RISING COSTS
Local builder Tim McGuire and some of his peers told The City Wire late last year that building costs were rising, and land prices linked to new development would likely produce sticker shock for some consumers looking to buy new in 2014 and beyond.

The Associated General Contractors of America, reported last week that prices for construction materials rose 0.6% in January. The trade group also noted that materials used by contractors such as gypsum jumped 7% and diesel rose 2%. They also warned that the higher prices on a sustained basis could squeeze margins for homebuilders.

“Although contractors on average were able to raise bid prices in line with material cost increase, the results varied widely by commodity, building type and specialty trade,” said Ken Simonson, chief economist for the trade group.

That said, the national builder sentiment survey released last week indicates that harsh winter weather has been a hinderance in many ways. No only are crews unable to work in frigid conditions, many report constraint issues in the supply chain for building materials, a shortage of developed lots and heightened competition for skilled labor. The culmination of these concerns resulted in a huge dip in builder sentiment as reported by the National Association of Home Builders, last week.

Confidence fell 10 points, according to the monthly sentiment index, from 56 to 46 — the largest drop in the history of the survey, which started in 1985.

Building Permit Comparisons (January)
Bentonville
2014: $29.27 million
2013: $6.062 million
382%

Fayetteville
2014: $10.782 million
2013: $5.588 million
92.9%

Springdale
2014: $4.979 million
2013: $4.988 million
0%

Rogers
2014: $1.056 million
2013: $9.305 million
-88.6%

Hundreds of candidates for state office have made the journey to the to the state capitol in Little Rock to file for their chosen offices this week.

One race receiving far more attention than politicos originally expected is the race for lieutenant governor. It is receiving increased scrutiny following the resignation of Lt. Gov. Mark Darr, R-Ark., following an ethics commission finding of misspending of more than $40,000 in campaign and office funds.

The race has been shaken up in recent weeks with the entrance of U.S. Rep. Tim Griffin, R-Little Rock, causing Rep. Charlie Collins, R-Fayetteville, to abandon his bid for the office and instead seek a third term in the state house. Others seeking the Republican nomination for the office are Reps. Andy Mayberry of Hensley, and Debra Hobbs of Rogers.

On the Democratic side, former Highway Commissioner John Burkhalter filed his candidacy papers Thursday (Feb. 27) for the office and has said Griffin's move into the race has not caused him to second guess his candidacy.

"This is about my opportunity to give back to my state. It has nothing to do with anyone else who wants to run in this race," he said.

Burkhalter, who announced his candidacy last year, said he wants to use the office as a way to advocate for bringing businesses and jobs to Arkansas, drawing on his own past to get the job done and advocate for small business owners like himself.

"I'm a guy who came from nowhere ... came to Little Rock, worked for someone else for close to 10 years ... never dreamed I would get the chance to have a business, to start a business," he said. "I went to the bankers in central Arkansas. ... Nobody would loan me money. I didn't come from a family of political influence or wealth."

Burkhalter, the only Democrat in the race, said he went to extreme measures to secure funding to start his own company, refinancing his home and using credit cards to become a successful business owner and have "the opportunity to live the American dream." He said running for lieutenant governor gives him the opportunity to now give back to Arkansas and pay "my debt to society."

Even though he has never before run for office, Burkhalter said he is hopeful he can run and win in November, this in spite of poll numbers showing Griffin a full 15% lead should the two go head to head in the general election, saying he'd "leave polling to the political pundits."

Burkhalter also dismissed a call by Mayberry to make the next term of whichever lieutenant governor is elected the last, eliminating the office outright. Mayberry has made the pitch to make him the state's "next, and last, lieutenant governor."

"People should have a chance to vote (on a person who may one day become governor)," Burkhalter said. "It should be someone elected by the state of Arkansas, not a district or a county."

Burkhalter also addressed the Private Option drama that has unfolded in the fiscal session during the last few weeks, saying it was time to pass the legislation he supports. The Private Option was passed in the 2013 legislation session and uses increased Medicaid funding through the new federal health care law to purchase private health insurance for low income residents.

"I'm for the Private Option. It was a bipartisan process in the last session. It passed by a super majority. It's hard to get that many people to agree on anything," he said. "There are over 100,000 people signed up on the exchange. I'm sure some of them have never had health insurance before."

He said should funding for the Private Option fail to pass the House, it would leave "a huge hole in the budget (that) the governor will have to deal with."

Following is a list of candidates for local federal offices, Arkansas Constitutional offices, as well as local state house and state senate races as provided by Talk Business blogger Jason Tolbert (as of Thursday, Feb. 27):
CONGRESSIONAL RACES
U.S. Senate:
• U.S. Rep. Tom Cotton, R
• U.S. Sen. Mark Pryor, D
• Mark Swaney, Green Party
• Nathan LaFrance, Libertarian

Third Congressional District:
• U.S. Rep. Steve Womack, R
• Grant Brand, Libertarian

Fourth Congressional District:
• Rep. Bruce Westerman, R
• Tommy Moll, R
• James Lee Witt, D
• Ken Hamilton, Libertarian

ARKANSAS CONSTITUTIONAL OFFICES
Governor:
• Curtis Coleman, R
• Former U.S. Rep. Asa Hutchinson, R
• Former U.S. Rep. Mike Ross, D
• Josh Drake, Green
• Frank Gilbert, Libertarian

Lieutenant Governor:
• U.S. Rep. Tim Griffin, R
• Rep. Andy Mayberry, R
• Rep. Debra Hobbs, R
• John Burkhalter, D
• Chris Olson, Libertarian

Secretary of State:
• Secretary of State Mark Martin, R
• Susan Inman, D
• Jacob Holloway, Libertarian

Attorney General:
• David Sterling, R
• Leslie Rutledge
• Rep. Nate Steel, D

Auditor of State:
• Ken Yang, R
• Rep. Andrea Lea, R
• Regina Hampton, D

State Treasurer:
• Rep. Duncan Baird, R
• Saline County Clerk Dennis Milligan, R
• Hot Springs City Director Karen Garcia, D

Land Commissioner:
• John Thurston, R

• Elvis Presley, Libertarian

ARKANSAS SENATE
Senate District 3:
• Sen. Cecille Beldsoe, R

Senate District 4:
• Sen. Uvalde Lindsey, D

Senate District 5:
• Sen. Bryan King, R

Senate District 6:
• Sen. Gary Stubblefield, R

Senate District 8:
• Sen. Jake Files, R

Senate District 9:
• Sen. Bruce Holland, R
• Rep. Terry Rice, R

ARKANSAS HOUSE OF REPRESENTATIVES
House District 21:
• Marcus E. Richmond, R

House District 74:
• Rep. Jon Eubanks, R

House District 75:
• Rep. Charlotte Douglas, R

House District 76:
• Matt Pitsch, R
• Bobby Altes, R

House District 77:
• Justin Boyd, R

House District 78:
• Rep. George McGill, D

House District 79:
• Rep. Gary Deffenbaugh, R

House District 80:
• Rep. Charlene Fite, R

House District 81:
• Rep. Justin Harris, R

House District 82:
• Rep. Bill Gossage, R

House District 84:
• Rep. Charlie Collins, R
• Justice of the Peace Candy Clark, D

House District 85:
• Rep. David Whitaker, D

House District 86:
• Rep. Greg Leding, D

House District 87:
• Robin Lundstrum, R
• Lucas Roebuck, R

House District 88:
• Rep. Randy Alexander, R
• Former Justice of the Peace Lance Eads, R

House District 89:
• Rep. Micah Neal, R

House District 90:
• Paul Caldwell, R
• Jana Della Rosa, R

House District 91:
• Rep. Dan Douglas, R

House District 92:
• Kim Hendren, R

House District 93:
• Rep. Jim Dotson, R
• Alderman Bill Burckart, R
• Alderman Leah Williams, D

House District 94:
• Marge Wolf, R
• Rebecca Petty, R
• Grimsley Graham, D

House District 95:
• Rep. Sue Scott, R
• Dane Zimmerman, R

House District 96:
• Grant Hodges

House District 97:
• Rep. Bob Ballinger, R

The Sebastian County Election Commission voted Thursday (Feb. 27) to consolidate several polling sites throughout the county. The consolidation of sites will impact 7,172 registered voters from Fort Smith, Barling and New Providence precincts.

According to Election Commission Chairman Lee Webb the moves were necessary to save the taxpayers money.

"We're going to save enough (money) to do our off-site early voting site, which is somewhere around the $13,000 range," Webb said, adding the the figure was for both the 2014 primary and general elections.

Many of the precincts to be consolidated were within close proximity of each other, such as WestArk Church of Christ and Grand Avenue Baptist Church, with Grand Avenue absorbing WestArk's 1,241 voters. Due to the close proximities, Webb said most affected voters should not see much more time added to their distance to vote.

One location, Haven Heights Baptist Church, was consolidated with the Southside Senior Center as a matter of saving money and following the law.

"The most contentious one was the Haven Heights, and we had to fix that issue because by statute, we only get one polling site per precinct and we've probably been in (violation of) those statutes and just had never caught it. So basically, it would have got corrected if we didn't vote on anything else. Either it or the senior center ... would have been closed."

County Clerk Sharon Brooks said voters in the affected precincts will be informed of the changes before the May 20 primary election.

"As soon as they (the Election Commission) get the information to us on what they closed, who they're moving — once that information is given to us, then we will send the changes out," she said.

With the election only eight weeks away, Brooks said the Commission will have to move quickly to officially notify her office of the changes.

"You can't make any changes 30 days prior to any elections," she added.

The Commission also approved the opening of an off-site early polling location to be located at the Dallas Street Library in Fort Smith. According to Webb, the site will cost the Commission $12,967 each year to operate.

The site is in addition to early voting that Brooks said will continue at the Fort Smith and Greenwood courthouses. Webb said adding the early voting site will better serve residents in eastern Fort Smith.

"The benefit of off-site early voting at this location (is) it provides an alternative to early voting in the highest turnout area of our city," he said. "East Fort Smith, historically, has been the highest turnout and hopefully, the goal is to improve convenience to the voter and improve accessibility to the voter. It saves them either a long trip to Greenwood or downtown (Fort Smith)."

Brooks said the hours for early voting are set by the Arkansas Secretary of State's office and will be Monday through Friday from 8 a.m. to 6 p.m. and Saturday from 10 a.m. to 4 p.m. in the two weeks prior to the election. There has been no date set for when the third early polling site will first be used, though Webb said it would be during one of the elections to be held in 2014.

In other business, the Commission received an Attorney General's opinion which states absentee ballots much have a submitted copy of an approved photo identification card in order to be counted in an election.

Webb said Sen. Jake Files, R-Fort Smith, had requested the opinion after there was confusion on new state laws and after the Secretary of State's office had directed election commissions across the state to treat absentee ballots without a submitted copy of a photo ID as provisional ballots, although the law did not direct such action.

The Sebastian Pulaski County Election Commissions had sought guidance on the law through requests by their local representatives in the General Assembly.

With the newly issued opinion, the Commission moved to not count absentee ballots that do not include the required copy of a photo ID card.

Watching some upstarts continue their startup, the potential contest between Hillary and Huckabee and a power boost for a Wal-Mart supplier are part of the Northwest Arkansas Friday Wire for Feb. 28.

NOTES & ANALYSIS
• Interesting entrepreneurs
Helen and Sam Walton and Don Tyson and J.B. and Johnelle Hunt weren’t feted as the entrepreneurs to watch during their early days of trying to keep the cash flowing and the lights on, but entrepreneurs they most certainly were.

No matter the label, it’s important to support and highlight the wisdom, will and work ethic the aforementioned billionaires used to become the aforementioned billionaires. That’s why we want to spend the remainder of this young 2014 watching a few startup companies with connections to Northwest Arkansas.

With input from Northwest Arkansas entrepreneurial advocates like Jeff Amerine and Ramsay Ball, The City Wire has tagged five new companies in various early business phases as the ones to watch in 2014. Oh Baby Foods, Overwatch, Silicon Solar Solutions, EcoVet and DataRank were selected because they have talent, capital and ideas — three main ingredients necessary for success. Some of these five startups may thrive for years, some may get acquired and some may fizzle.

Not that we believe we’ve located the next successful multi-billon dollar company, but we do have high hopes for the entrepreneurial efforts growing in a Northwest Arkansas that continues to grow because of the entrepreneurial efforts of the Hunt, Tyson and Walton folks.

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 ...

• The Supply Side: Plug Power boost
No matter your thoughts about the global retail giant that is Wal-Mart Stores Inc., there is no denying the boost this Bentonville-based company can have on a small supplier’s balance sheet.

• The impact of consumer concerns
More consumers plan to sock away their tax refunds which is bad news for retailers like Wal-Mart who are sitting on higher inventory levels two months removed from what was a disappointing holiday season.

• Bella Vista seeks to raise POA assessment
Bella Vista Property Owners Association is seeking a 62.5% rate increase in the monthly fees paid by homeowners in Bella Vista to combat a $60 million shortfall in reserves by 2023. The rate increase, if approved by a majority vote, will be phased in over the next three years.

NUMBERS ON THE WIRE
46%: Percentage of respondents in a National Retail Federal survey who expect to save more of the money they receive from their tax refund – up from 44% in 2013.

$4.894 million: Combined sales tax collections from Bentonville, Fayetteville, Rogers and Springdale in the January report, down from $5.075 million in the same period of 2013.

6.55%: Increase in number of January home sales in Arkansas’ four largest metro markets compared to January 2013, according to The City Wire’s Arkansas Home Sales Report.

OUTSIDE THE WIRE
• Hillary and Huckabee
The likely 2016 matchup in Iowa if the race were held today would be former Secretary of State Hillary Clinton against former Arkansas Gov. Mike Huckabee, with Clinton ahead, according to a new poll. The former first lady and senator leads all her potential Republican challengers by at least 4 points. She tops Huckabee 46% to 42%, Bush 45% to 41%, Paul 47% to 42% and Christie 45% to 39%.

• Bill and Hillary papers
The Clinton Presidential Library will make its first release on Friday (Feb. 28) of records that were previously withheld from the public under legal provisions that expired early last year, a spokeswoman for the National Archives said. About 4,000 to 5,000 pages will be put online at 1 P.M. Friday, with paper copies becoming simultaneously available at the library in Little Rock, the spokeswoman said. More releases are expected in the next couple of weeks.

• Tough path for states seeking Medicaid expansion
Of the 25 states that already have expanded Medicaid under the Affordable Care Act, all but Arkansas, Iowa and Michigan simply added newly eligible adults to their existing Medicaid programs. That was the easiest approach. In contrast, the states that haven’t yet expanded Medicaid but are considering doing so want to tailor the program to fit their own priorities—and that will take time.

WORD ON THE WIRE
"Donations are the lifeblood of the organization. The funds generated through the sale of goods go right back into the Siloam Springs community to help people who need job readiness training and education."
— Goodwill Industries of Arkansas President Brian Itzkowitz, in speaking about the new Goodwill location set to soon open in Siloam Springs

“I think we’re going to have a good season this year. I think holding on during the bad times was a victory. From what I can tell, if the weather will let us alone for a while, we’re going to have a good year. I think people are a little more sure about the economy. I think they’ve got a little money in their pockets. And I think after this winter, they may have some severe cabin fever they want to solve. So I’m looking forward to a good year.”
— Richard Davies, executive director of the Arkansas Parks & Tourism Department, when asked about the tourism industry performance in 2014

“(A) court facing a defendant arrested with a gun would interpret the statute based upon its plain meaning. When all is said and done, how can the court punish a person for following the literal and unambiguous meaning of the statute? A person should not be expected to consult the history of the law’s passage, or its political context, to understand what it proscribes."
— University of Arkansas law professor Laurent Sacharoff and law student Jacob Worlow, on their review of a law that has allowed for open carry of handguns in Arkansas