An almost 5% decline in the estimated number of out-of-work Arkansans and a 0.59% increase in the number of Arkansans with jobs helped push the state’s February jobless rate to 7.1% compared to 7.5% in February 2013.

The February rate was also lower than the 7.3% in January, according to the report issued Friday (March 28) by the U.S. Bureau of Labor Statistics. However, February marked 61 consecutive months – more than five years – that the state’s jobless rate has been at or above 7%.

Arkansas’ labor force was an estimated 1.33 million in February, up slightly compared to January, and up compared to 1.328 million in February 2013. The year-over-year comparison shows an estimated 2,372 more Arkansans in the labor force.

The number of employed in Arkansas during February was 1.236 million, above January employment of 1.231 million, and up an estimated 7,314 jobs compared to the 1.229 million in February 2013.

The number of unemployed was an estimated 94,059 during February, down from the 96,952 in January, and down 4.99% compared to the 99,001 in February 2013.

Arkansas’ annual average jobless rate fell from 7.9% during 2011 to a revised 7.5% during 2012. The initial annual average jobless rate for Arkansas during 2013 is 7.5%.

ARKANSAS SECTOR NUMBERS
In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment during February was an estimated 244,800, up from 243,600 in January and ahead of the 241,700 during February 2013. Employment in the sector hit a high of 251,800 in March 2007.

Manufacturing jobs in Arkansas during February totaled 154,300, up compared to 153,600 in January and above the 153,800 in February 2013. Employment in the manufacturing sector fell in 2013 to levels not seen since early 1968. Peak employment in the sector was 247,300 in February 1995.

Government job employment during February was 215,600, up from 215,200 in January and below the 216,000 during February 2012.

The state’s Education and Health Services sector during February had 173,800 jobs, up from the 173,300 during January and up from 171,600 during February 2013. Employment in the sector is up more than 23% compared to February 2004.

Arkansas’ tourism sector (leisure & hospitality) employed 109,000 during February, unchanged compared to 109,000 during January, and above the 104,400 during February 2013. The January and February employment levels set a new record for the sector. The number is subject to revision in future reports.

NATIONAL DATA
The BLS report also noted that 49 states had unemployment rate decreases from a year earlier, and one state had no change. The national jobless rate during February was at 6.7%, and was down from the 7.7% in February 2013.

Rhode Island had the highest unemployment rate among the states in February at 9%. The next highest rate was Illinois at 8.7% and Nevada at 8.5%. North Dakota again had the lowest jobless rate at 2.6%, followed by Nebraska at 3.6%.

The February jobless rate in Oklahoma was 5%, down compared to 5.2% to January and down from 5.3% in February 2013.

Missouri’s jobless rate during February was 6.4%, up from 6% in January and down compared to 6.7% in February 2013.

Simmons First National Corp. CEO George Makris said recent moves have put his bank in a stronger position to serve customers and he sees significant growth for the Pine Bluff-based financial institution in the near future.

Last week, Simmons announced it would acquire Little Rock-based Delta Trust and Bank, a move that added nine locations to Simmons’ bank footprint in southeast, central and northwest Arkansas. More importantly, the $66 million deal will bring new trust, investment, mortgage and insurance products to Simmons customers.

Coming off the retail expansion of last fall’s $53.6 million acquisition of Little Rock-based Metropolitan National Bank, Makris said Delta Trust is a huge complementary move.

“What Delta brings to the table are the other lines of business that maybe Metropolitan didn’t specialize in like trust, investments and insurance,” Makris said in a Talk Business & Politics interview this week.

When the Delta Trust buyout closes later this year, Simmons First will have roughly $3.5 billion in trust management under its roof. Makris said Delta Trust’s small bank location footprint may only result in the closure of one Little Rock branch.

MERGERS & ACQUISITIONS ACTIVITY
For Makris, who officially took over as Simmons CEO in January after the long tenure of Tommy May, he’s quickly putting his stamp on the banking outfit. He said market share has been a major part of Simmons First’s acquisition strategy in state.

“In central Arkansas, our share was obviously not where we wanted it to be. So as we take a look at acquisitions, it is to build our franchise in those growth markets.”

That includes out-of-state markets, such as Missouri and Kansas where Simmons previously conducted FDIC-assisted transactions. Makris said the bank is now positioned for organic growth or acquisition growth in the future with a host of new products.

“We really would like to fill in our footprint in Missouri and Kansas. We have a strategy now for de novo growth. We’ve got some really good bankers in those markets,” he said. “We need a little more scale in those markets to be able to do some of the things that we really want to do.”

Makris said due to Simmons’ legacy in southeast Arkansas, there is appeal to look at smaller banks in agricultural communities, perhaps more on a one-on-one basis.

“There are a lot of private banks that are just tired of what’s going on in the industry today,” Makris said. “In many cases, we see private banks that have aging management and not a real good succession plan.”

Those banks typically have boards of directors who must contribute money into a local bank’s capital in order to help in maintain sufficient margins. Of course, they’d prefer to be receiving dividend checks, Makris said.

He also said recent regulatory burdens stemming from the Dodd-Frank reform bill is also impacting community banks and forcing many of them to reconsider their long-term futures.

“Management that may not have a great succession plan, boards who have changed their focus for their wealth, and regulatory fatigue are the three main drivers of a lot of the M&A activity we see today.”

There were hundreds of soundbites at Wal-Mart’s recent Year Beginning Meetings held in Orlando. But one that resonated with potential suppliers came from Michelle Gloeckler, senior vice president of the home category for Walmart U.S.

“We are now actively seeking suppliers like never before who can provide products made on U.S. soil,” Gloeckler said.

She issued a Request for Proposal (RFP) seeking suppliers who make or assemble patio furniture in the U.S. She said bulky items like furniture is costly to ship and adds to the retailer’s carbon footprint overtime. 

“Making things closer to the point of purchase and shortening the shipping distance will lead to cost savings and environmental benefits, and it will help us solve the business problem,” Gloeckler said. 

“So, we’re taking a new approach to patio,” Gloeckler wrote in her March 13 corporate blog during the retailer’s meetings with suppliers in Orlando. “We’re focusing on making patio furniture closer to your backyard, which will lead to valuable manufacturing jobs in your community.”

Gloeckler said obvious benefits to recruiting U.S. suppliers are the support for American jobs, but she also identified other benefits to Wal-Mart’s business, “like sales increases, product flexibility, improved in-stock and increased response time.”

Wal-Mart officials have said they remain committed to the onshore manufacturing initiative. Gloeckler said the retailer is already in talks with suppliers in 40 departments to find ways to manufacture on U.S. soil.

U.S. JOBS
It’s been one year since Wal-Mart announced its commitment to invest $50 billion into American products by 2023. She recently noted that the 10-year timeline was necessary as the retailer works with more suppliers trying to onshore their manufacturing operations — a time-intensive endeavor. Gloeckler said the retailer is looking for categories like patio furniture that present certain business challenges when manufactured abroad. The plan is to guide such products toward the retailer’s U.S. manufacturing initiative.

Daniel Levin, CEO of Cain Millwork, recently told CNBC that it may make more sense to create new manufacturing jobs than try to bring old manufacturing processes back.

“If you need something in six weeks, you need to have it done here, not overseas and that is not changing anytime soon,” Levin said.

Phillip Koosed, CEO of BAMKO recently told CNBC that manufacturing is still a segment very much in decline and while the anecdotal stories of small manufacturing shops opening in the U.S. are nice to hear, they aren’t moving the needle forward. He too, would like see more corporate efforts going into innovation hubs than courting back old manufacturing jobs.

There were an estimated 12.065 million manufacturing jobs in the U.S. during February, 2014, slightly above the post-war February 1946 level of 11.922 million, but well the peak of 19.553 million in June 1979.

OPEN CALL
In an unexpected and unusual move, Wal-Mart announced a July 8 open call for suppliers manufacturing in the U.S. and for suppliers ready to pitch new products and new categories.

“We’re open to great products that will delight our customers, especially if they’re made right here at home. At the same time, we want our suppliers to reevaluate their business models with the U.S. in mind and look more closely at what’s possible,” Gloeckler noted in her blog.

Wat-Mart also is willing to play matchmaker in order to get more innovative contributions from its supplier base. 

Walmart U.S. CEO Bill Simon said during the recent Year Beginning Meetings event that suppliers should bring their ideas forward as Wal-Mart may be able to match them with an innovator or entrepreneur.

Jason Long, CEO of Shift Marketing Group, said Wal-Mart is not just paying lip service with its commitment to source more U.S. made product as they are giving priority and preference to “Made-in-the-USA items.

Most Walmart suppliers probably measure their bottom line in regards to profit margins and the number of SKUs (products) available in the stores. For Humankind Water, the measurement of success is in terms of “people years” of water. In other words, the number of people served fresh drinking water times the number of years the well or filter used to provide that water is conservatively estimated to last.

Since winning the first “Get on the Shelf” contest at Walmart.com in 2012, Humankind Water has been able to exponentially increase its ability to provide fresh, clean water for people in countries including Haiti, Malawi, Uganda and India. To date, they’ve developed more than 40 wells and filters in those countries, said TJ Foltz, president and CEO. 

Philadelphia-based Humankind Water, which has a for-profit arm that sells water and a nonprofit foundation that accepts donations, "exists (solely) to raise money and awareness to help wipe out the world's drinking water crisis," according to the company’s website.

At first glance this company looks more like a venture Walmart’s Foundation would support than a product supplier. But this business model leverages Wal-Mart’s scale with the consumer’s desire to help others and it works, according to company execs.

Foltz, a youth minister and public speaker, left his job at the American branch of the Bible-education organization Scripture Union to work full-time on his water project in the fall of 2012.

GETTING ON THE SHELF
“It's everything,” Foltz said of how winning the contest affected their overall sales and ability to serve others. “You have to understand we had only gotten the first bottles two months before the contest was announced. We basically tabled our entire 5-year marketing plan knowing that winning the contest would get us the notoriety that would put us on the map.”

The actual profit margin varies on the retailer where the products are sold and the total effect of those dollars on the ability to provide fresh water also varies on the country’s sustainability structures already in place. 

“There are big variables in how much it costs to dig a well, install a filter, put up a rain catchment system. Our whole point in putting the promise on the bottle that we do —1 bottle=clean H2O for 1 person for 1 year — is predicated on knowing how ridiculously cheap it is to provide clean drinking water,” Foltz said. “If we find the right large population in the right country with the right sustainability structures in place, we can get clean drinking water to people for less than 25 cents per year. It's mind boggling.”

Continuing, he noted” “When you compare the enormity of the problem and the relative ease and low expense of providing the solution...you'd have to say, as I often do: ‘Water is the lowest hanging fruit on philanthropy's tree.’”

Ravi Jariwala, Walmart.com spokesman, said the Get on the Shelf program promises the winner the ability to have their products on Walmart.com and the opportunity to meet with buyers with the hope they might also become in-store suppliers. For Humankind Water, it was not feasible to sell the product online so the decision was made to place them in about 200 stores in the northeast United States near where Humankind Water is located. The water is from a protected spring in Honesdale, Pa., and bottled in the Pocono Mountains.

Calling Get on the Shelf a very “customer-centered program,” Jariwala said Walmart.com buyers cull the entries then customers could vote to create the top 20 finalists which were then placed in categories. Those finalists were flown to Bentonville to create webisodes about their products. Customers then had the ability to vote for the top contender in each category.

HELPFUL SUPPORT
Foltz said he is grateful to the mentoring and support the company received throughout the process, including Scott Poole and Greg Pickens at Premier Concepts.

“They do merchandising for companies like ours. Their folks go into the stores, locate the bottles, and line them up like perfect little tin soldiers, as well as put up, or if need be, replace our in-store signage,” Foltz said of Premier Concepts.

Some of the help came from unexpected places.

“We heard during the Walmart.com contest — and to this day we have no idea how —that Bentonville High School was voting like crazy for Humankind Water,” he said. “I have absolutely no idea how that many students would have gotten the word about Humankind Water to vote for us, but many did. And I'd like to thank those folks.”

PLANS TO EXPAND
Selling more water means providing more water through philanthropic means.

“We would love to expand to nationwide and are striving every day to do so. But you have to understand, when we won the contest we were tiny,” Foltz said. “We started Humankind Water on a shoestring, and won the contest on a shoestring as well. We've expanded as far as we have without ever spending a penny (to date) on traditional advertising, which as you know, is unheard of in the industry. ... So while we're not as far-ranging as we'd like to be (nationwide) we do feel great about the fact that we've gotten as far as we have spending next to nothing,” Foltz said.

He said there are plans for “some more mainstream advertising. People respond when they hear our story.”

While the bottled water is not available in Arkansas (“yet,” Foltz said), Northwest Arkansas residents can still order it for their own use, or for events and fundraisers. The process is to contact Foltz and order by the pallet. The water is purchased from Humankind Water for $1 a bottle and can be resold for more to generate needed funds for churches or other organizations.

February was another cold and snowy month but homebuilders were able to ramp up their permit paperwork in the region’s four largest cities. Springdale, Bentonville, Fayetteville and Rogers issued new residential permits valued at more than $30.418 million last month, up 5.3% from $28.881 million the year ago period.

Last month the combined cities issued 129 permits for new single family homes planned. This was stable against the 125 permits issued a year ago. However, permit activity was up 84% from the previous month.

THE NUMBERS
Residential Permit Values (February)
Bentonville: $12.801 million, up 18.6%
Fayetteville $8.075 million, up 27.6%
Springdale: $6.324 million, up 13%
Rogers: $5.155 million, down 16.5%

The recent Skyline Report sponsored by Arvest Bank indicates the supply of new, completed homes in the two-county area shrunk by 60% the back half of 2013 amid steady buyer demand.

“The balance between absorption of the existing houses in new subdivisions and the small increase in building permit activity across Benton and Washington counties is exactly right,” said Kathy Deck, lead researcher for the Skyline Report at University of Arkansas. “We are seeing the market move forward without undue concern with oversupply that we have seen in the past.”

Deck said the level of new construction is appropriate to the level of growth in the area.

“This shows us that we are sustaining reasonable growth," she added.

This is good new for homebuilders and their suppliers who have managed to stay busy, particularly in Benton County because of pent-up demand for new home construction. 

CONTINUED REBOUND
Murray Mansch, owner of Flooring America stores in Springdale and Bentonville, said his business was up 15% last year and it continues to rebound from the major housing bust eight years ago.

“About 40% of our business is new home construction. ... We are seeing smaller builders who sat out for a while rekindle their business and others expanding the number of homes they are starting from pent-up demand,” Mansch said. “As home values are coming up, we are also seeing more remodel business that includes new flooring.”

He estimates his own business will grow another 15% this year after recent meetings with his largest homebuilding customers. He said lumber prices are holding steady despite the uptick in demand. Mansch said freight on flooring materials is a big part of the overall costs. He said wood flooring is the most popular choice today and most of it is harvested in the U.S. and shipped to China for manufacturing and then shipped back as wood flooring.

COMMERCIAL WORK
The four cities issued just two new commercial permits between them last month totaling $2.495 million. The number follows an active January with several large permits totaling $25.9 million. New commercial permits declined 49% from the $4.898 million reported a year ago, among the respective cities.

On tap in Fayetteville is a new Slim Chicken’s Restaurant at 3562 Wedington Drive. In Bentonville, Walgreens cleared the way for a new pharmacy located at 1311 S. Walton Blvd., directly across from the new Wal-Mart Convenience Store and gas station.

Local experts expect the commercial sector will pick up steam this year following on the heels of robust residential activity over the past two years.

NanoMech in Springdale broke ground Monday (March 31) for its 25,000-square-foot expansion to its manufacturing research site. The company plans to add between 25 and 50 new employees to its payroll once the project is completed by late summer.

Numerous companies have recently filed permits with the state health department for new projects or expansions of existing businesses. These permits typically precede city permits by two or more months. Legacy National Bank filed a permit for a new 6,500-square-foot banking center to be located 4901 W. Pauline Whitaker Parkway, next to Chuy’s Restaurant in Rogers.

CEO Don Gibson said the bank recently acquired the property from Hunt Ventures and has received approval from the Office of the Comptroller of the Currency to relocate a small branch office in Pinnacle Hills, near Cross Church to the new financial center.

“This new banking center will provide a full range of services like our Joyce Street location in Fayetteville and our flagship bank in Springdale. We plan to break ground in mid-April and expect the bank to be completed by September by Milestone Construction,” Gibson said.

Other Benton County projects include:
• Twin Peaks Restaurant, Promenade Boulevard and Bellview Road in Rogers;
• Maria’s Supermercado, 2503 S. Walton Blvd., Bentonville;
• Advance Pierre Foods, 5507 Walsh Lane, Ste. 201. Rogers;
• The Ice House, SE 5th Street and SE E Street in Bentonville; 
• Walmart Neighborhood Market, 935 S. Holly Street, Siloam Springs;
• Walmart Neighborhood Market, 240 Slack Street, Pea Ridge; and
• Thrive Bentonville, multifamily complex, 401 SW.A Street, Bentonville.

Washington County projects include:
• Regal Nails, 4870 Elm Springs Road, Springdale;
• Springdale Parks Improvements, new park near Butterfield Coach Road, Springdale;
• Wood Stone Craft Pizza, 5575 School Ave., Fayetteville'
• Mr. O’s Nutrition Smoothly Bar, 3980 W. Wedington, Suite 11, Fayetteville; and 
• Walmart Fueling Station, Elm Springs Road, Springdale.

A vote on unionization at one of OK Foods' local facilities will move forward on May 1.

According to Anthony Elmo of the United Food and Commercial Workers Union Local 1000, the National Labor Relations Board will oversee the unionization election for 55 maintenance and refrigeration workers at the company's Heavener, Okla., facility, one of three local OK Foods plants where UFCW officials are working with employees interested in unionizing.

UFCW Local 1000 President Ricky Burris said the company's employees deserved to be treated better by the company, one of many reasons the UFCW had pushed for a unionization vote.

"Their wages and benefits are sub-standard and they are joining together to get a fair deal from OK Foods," he said. "I'm proud UFCW is standing with these workers."

OK Foods has declined to offer comment on the May 1 vote.

A press release sent out by the UFCW on Monday (March 31) said workers at the Heavener facility requested UFCW assistance in December 2013 with a list of complaints including "low wages, expensive healthcare benefits, and unfair and unequal treatment at OK Foods' chicken processing plant in Heavener."

The request for assistance at the Heavener site came the same month that the union withdrew its request for a union vote at OK Foods' Fort Smith facility.

At the time, OK Foods said it was a sign that the union would not be able to secure the votes needed to enable workers to collectively bargain

“The withdrawal clearly indicates the Union did not have the support it needed to win the election,” a company statement said. “Management of the company is very grateful to its employees for their support and confidence, and is looking forward to working together to make OK Foods a great place to work.”

While the company was asserting a lack of support, it did not halt the efforts of the UFCW and company employees rallying the cause, who said withdrawing the request for a vote was due to other factors — mainly a result of the company providing the UFCW with a larger than expected manifest of employees in the run up to the planned vote, according to Elmo.

"In the process of giving us the list, which they have to do by law, that list was 600 (more) people (than the union was aware of). We didn't feel we could have a fair election (on whether or not to unionize) until contacting those workers to see if they supported the union or not. So that's where we are."

While a vote will now take place at the Heavener facility, what could happen at the Fort Smith or Muldrow, Okla., facilities is still anyone's guess, he said, adding that it is too early to tell what could happen.

"The (Fort Smith), Arkansas, plant is being run by a separate group of organizers," he said. "We've been working with some workers (in Muldrow, Okla.), but we're not at the point where we're ready to file for an election."

Union organizers for the Fort Smith facility declined comment for this story.

The NLRB-overseen election results will be known immediately, Elmo said, adding that the union and employees of the Heavener facility will be ready to negotiate employee demands with the company should the union vote succeed.

"We will probably send the company a letter the next day to see when they'd like to be available for contract negotiations. Then we'd have meetings with employees to voice their concerns and what they would like. They would appoint a bargaining committee. They will work with us and sit across the table from them (OK Foods officials) to negotiate the contracts with them. Immediately, we'll ask the company to come to the table."

Unionization itself is not uncommon within OK Foods' parent company, Industrias Bachoco, with more than 50% of its Mexican plants under union contracts. It is a reason Elmo told The City Wire earlier in March that there was hope that the company could be friendly to union efforts.

"(OK Foods is) a very successful company," he said. "It's part of why Bachoco bought them (in 2011). I don't think paying better wages is going to hurt this company. I think it helps. It will reduce turnover. Right now, this company blows through employees. They are constantly bringing in new help. My argument to this company would be if these people thought these jobs were better and more stable, the turnover would go down and you would see increased cost savings from that. From a corporate perspective, I would say they may want to give this a look."

Should the company choose to not enter contract negotiations, Elmo said Monday that the law would be on the side of the union and its members.

"We would rely on the law, the National Labor Relations Act. There are some stipulations about arbitration and mediation. If the company doesn't want to engage in negotiations, then we would follow the avenues the act allows."

Shares of Industrias Bachoco (IBA) were down nearly a tenth of a point at the close of business Monday, at $43.77 on light trading. In the last year, the stock has fluctuated between $30.19 and $46.16 per share.

A question at a Fort Smith town hall meeting and court hearings in Maryland normally do not intersect, but the topic raised by Fort Smith resident David Harris at a March 4 forum following the evening's regular Board of Directors meeting could have far-reaching implications.

During the town hall meeting, where members of the Fort Smith Board of Directors and city administration take questions from city residents in a one-on-one setting, Harris alleged that requests by the Mayor for local religious leaders to offer the benediction at the start of city meetings did not include religious leaders outside of the Christian faith.

It did not take but a few seconds before Mayor Sandy Sanders interjected and emphatically told Harris, "That is absolutely not true."

"We have invited numerous (religious leaders of other faiths). So that is absolutely not true."

While Harris thanked the mayor for the clarification, the matter seemed a local question until last week when a press release from the American Humanist Association called attention to Christian prayer at public meetings and a recent court ruling that found in favor of the organization, which had sued to force Carroll County, Md., officials from invoking the name of Jesus in prayers at its public meetings.

"When government officials frequently invoke Jesus or Savior in government meetings, they exploit the legislative prayer opportunity permitted by Marsh in violation of the Constitution," said Monica Miller, attorney for the American Humanist Association's Appignani Humanist Legal Center. "Non-Christians who are necessarily excluded by such sectarian Christian prayers, feel like religious outsiders and second-class citizens in their own community."

In the ruling, U.S. Federal Judge William Quarels, Jr., of the U.S. District Court of Maryland, ruled that Carroll County, Md., officials are prohibited "from invoking the name of a specific deity associated with any specific faith or belief in prayers given at [Board] meetings" while the lawsuit is pending. The ruling from Quarels does not stop non-sectarian prayers at public meetings.

"This is a major victory for the separation of church and state," said David Niose, legal director at the Appignani Humanist Legal Center. "Invocations at public meetings must not be sectarian, and that rule was clearly broken by the county here."

Even though there has been angst by the American Humanist Association about prayers offered to Jesus, Sanders’ office provided documentation showing that the city of Fort Smith has made attempts to include other faiths in the opening prayer ritual at city Board meetings. Among the non-Christian groups to be invited, the mayor's office has reached out to the Arkansas International Buddhist Temple, Wat Budda Samakitham, Masjid Al Salam and the United Hebrew Congregation.

A brief letter dated Jan. 16 to the Arkansas International Buddhist Temple in Fort Smith explained that the Board "begins each meeting with a brief invocation, followed by the Pledge of Allegiance."

"I would like to invite you to give the invocation at one of the Board of Directors meetings during 2014, if you so desire," Sanders wrote to the temple, including instructions about how to make arrangements for a "mutually-agreeable date."

Nick Wintory, a member of the Board of Trustees at the United Hebrew Congregation, said his interactions with Sanders and former Mayor Ray Baker in the context of church and state have always been pleasant and non-exclusionary.

"Being 91 and having lived here for 75 years, I know quite a bit," he said. "I don't know that I've particularly felt slighted. And I don't know that prayer is particularly needed (at the beginning of meetings) anyway, but that's a personal position."

Many lifelong residents view public prayer at any sort of function just as Southern as fried chicken and sweet tea, and it does not appear that Wintory, himself a Southern transplant, is much different. But his personal opinion does go a bit further than that of the American Humanist Association.

"I don't know that we need some sort of benediction in order to conduct our business. But that's not the Southern way. Now these people here pray on every occasion, whether they need it or not," he said, adding that he doubts God would make many changes in the hearts of meeting participants as a result of a pre-meeting prayer.

Wintory noted that while Harris may have asked about the inclusion of non-Christian denominations, he again would not feel slighted had the invitation not come to his synagogue.

"It takes guts," he said. "There are about 25 of us (who attend the synagogue). It takes (guts) to require the city of Fort Smith to require that these 30 people be heard at every meeting. It doesn't mean a damn thing, if you know what I'm trying to say. I wish them luck, but I know a Baptist prayer is probably the best thing for these meetings. But we've always been included."

And while there may be concern among some citizens of not enough inclusion of other faiths or concern among atheist organizations about public prayer to a Christian God, Wintory said his personal faith is strong enough to not worry about any potential slights.

"At 91 and being a refugee from Nazi Germany, my Judaism is a little more set than kids from Fort Smith. I've been through the Holocaust and lived through Hitler, so I appreciate my Judiasm more than many in our congregation. But to me, this is not big thing. But it is nice to be asked even if we don't participate."

Just seven of the 17 publicly held companies based in Arkansas enjoyed a share price gain during the first quarter of 2014, a reversal from the 13 of the 16 followed in 2013 that had share price gains for the year.

The biggest gainer in the quarter was Springdale-based Tyson Foods which saw its share price rise almost $11 to $44.01. The largest drop came from Bentonville-based America’s Car Mart which saw its share price fall almost 13% in the quarter.

The equity markets were just barely able to remain above water during the first quarter. The Dow Jones Industrial Average (DJIA) began the year at 16,441.35, and finished the quarter (March 31) just over 16 points higher at 16,457.66. And that increase was thanks to a 134.6 point rally on Monday. The DJIA was up more than 23% in 2013, rising from 13,412 points to end the year at 16,576.

The broader S&P 500 began 2014 at 1,831.98 and ended the quarter just slightly higher at 1,872.34. Bad winter weather, rate hike rumblings from a new Fed chief (Janet Yellen) and continued concerns with a labor market that struggles to find solid footing have been cited by some economists and market watchers for the relatively slow start on Wall Street.

THE UPS
Fort Smith-based Arkansas Best Corp. (NASDAQ: ABFS), the parent company of less-than-truckload carrier ABF Freight System, closed the quarter at $36.92, up 9.25% compared to the Jan. 2 closing price of $33.82. A return to positive earnings helped shore up the share price. The company reported Jan. 30 that 2013 net income was $15.8 million, much better than the $7.7 million loss in 2012 and the most the company has earned in a year since 2008. The per share earnings of 59 cents also blew past the consensus estimate of 47 cents per share.

Little Rock-based Bank of the Ozarks (NASDAQ: OZRK) ended the quarter at $65.92, a healthy 20.8% increase from the Jan. 2 closing price of $56.32. The banking operation reported Jan. 16 that full year 2013 net income totaled $87.1 million, a 13.1% increase from $77.0 million for the full year of 2012. The bank is on an expansion path, with its most recent acquisition being the $216 million buyout of Arkadelphia-based Summit Bancorp.

Harrison-based First Federal Bancshares (NASDAQ: FFBH) ended the quarter at $9.17, up 5.16% compared to the Jan. 2 closing price of $8.72.

Pine Bluff-based Simmons First (NASDAQ: SFNC), which also is expanding through acquisition, ended the quarter at $37.27, up 2.47% over the Jan. 2 closing price of $36.37. The bank announced March 24 that it entered into an agreement to buy Little Rock-based Delta Trust for $66 million.

Springdale-based Tyson Foods (NYSE: TSN) set a new 52-week high in the first quarter with a strong outlook for the full year. Tyson shares closed March 31 at $44.01, up 2% on the day, while soaring 32.6% in the first quarter. CEO Donnie Smith said the company is able to pass along higher operating costs to customers and is poised for another record year.

Despite troubles with revenue, Little Rock-based Windstream (NYSE: WIN) ended the quarter at $8.24, up 2.87% compared to the Jan. 2 closing price.

THE DOWNS
Seeing share price declines were Little Rock-based Acxiom (down 5.95%); Bentonville-based America’s Car-Mart (down 12.63%); El Dorado-based Deltic Timber (down 2.21%); Little Rock-based Dillard’s (down 4.59%); Conway-based Home Bancshares (down 5.33%); Lowell-based J.B. Hunt Transport Services (down 6.1%); El Dorado-based Murphy Oil Corp. (down 1.31%); El Dorado-based Murphy USA Inc. (down 3.14%); Tontitown-based P.A.M. Transport (down 4.19%); and Bentonville-based Wal-Mart Stores Inc. (down 3.14%).

J.B. Hunt Transport (NASDAQ: JBHT), the largest, most diversified logistics company in this report, saw its shares close the first quarter of 2014 at $71.92, up 2.79% on the day.  The uptick reverses a first quarter downward trend as the share price declined 6.1% from $76.60 where it began trading in 2014. Analysts with Bank of America recently downgraded JBHT shares from a “buy” to “hold” citing lackluster intermodal volumes related to winter storms around Chicago, a major hub for Burlington Northern Santa Fe.

Wal-Mart Stores Inc. (NYSE: WMT) closed March 31 at $76.43, up 42 cents on the day. Wal-Mart missed earnings expectations as did most retailers in the quarter, but analysts view Wal-Mart has a safe haven given its 2.5% dividend yield.

Shares of America’s Car-Mart Inc. (NASDAQ: CRMT) closed the quarter at $36.66, up 3.4% on the day. The Bentonville-based buy here, pay here used car dealer’s share price tumbled 11.8% during the first quarter from $41.96 where it closed on Jan. 2. Car-Mart has reported competitive pressures from an increase in subprime lending options.

Little Rock-based Dillard’s (NYSE: DDS) may have posted a price decline in the quarter but the company posts the highest share price with a quarter-ending mark of $92.40. However, the price was down from the Jan. 2 closing price of $96.85. As have many retailers around the country, Dillard’s has struggled with sales related to winter weather storms, and market watchers are expressing concerns signs the consumer is moderating spending habits.

The City of Rogers is a shopping destination in Northwest Arkansas and the new Walmart AMP under construction in Pinnacle Hills is poised to be a gem the entire region will enjoy, but the city still falls short in expanded business and cultural opportunities, according to a new assessment report released this week.

The report was produced for the Rogers-Lowell Area Chamber of Commerce by Atlanta-based Market Street Services.

The Community Assessment Report for the Rogers-Lowell Area was made public on Monday (March 31) and examines the area as a place to live, work and do business. The 43-page report outlines nine key issues discussed in the diverse focus groups assembled and interviewed for this assessment. This story will center on what focus groups noted about lagging skilled jobs growth and concerns over downtown development.

JOB SHIFT
While Northwest Arkansas has been among the fastest-growing economies in the country and the local unemployment rate is well below the state and national levels, the focus groups noted a sector shift in local job growth for the Rogers-Lowell area.

“The region has become a hub of retail and professional services activity while industrial development has stagnated,” according to the focus group statement in the report.

The Rogers-Lowell economy is in transition since the Great Recession. Between 2003 and 2013, Rogers-Lowell increased employment by 10%, trailing the 16.9% growth rate across the whole Northwest Arkansas region.  

“This likely comes as a surprise to many who have witnessed the rapid development in around the Pinnacle Hills area and frequently cited its growth during the public process as a sign of Rogers’ continued economic emergence within the region,” the report states.

This growth in retail is evident over the past decade comprising about half of the all retail jobs added in Benton County. At the same time, more than 2,200 manufacturing jobs and 3,500 transportation and warehouse jobs have been lost in the Rogers-Lowell area since 2003.

The residents in the focus groups noted they are happy to have more shopping and dining options nearby but these are low-wage jobs and add little new wealth in the region as whole. However, the city notes that the new retail venues draw visitors from around the region and have helped to boost tax revenue for the cities.

“Representatives from manufacturers in the community that participated in public input sessions noted difficulty finding qualified employees in a variety of positions, including but not limited to machinists, toolmakers, electronic and electrical technicians, and skilled trades ... In addition to workforce concerns, manufacturers expressed some concern that the community was more focused on developing retail and amenities to support its quality of life than on the needs of existing and potential future manufacturers in support of its economic development. They also struggle to fight perceptions at the state-level that ‘Northwest Arkansas doesn’t need any help’ and that it ‘has all the corporate headquarters and therefore doesn’t need any manufacturing investment,’” the focus groups noted in the report.

DOWNTOWN DEVELOPMENT
“When focus groups discussed the topics of entertainment, nightlife, housing, aesthetics, redevelopment, and general community attractiveness to different age groups, the conversation almost always came back to downtown Rogers,” the report states.

Behind traffic and transportation, downtown was the most mentioned community challenge identified by the survey respondents, according to the report. When asked what they would like to see different about the community in 10 years, survey respondents overwhelmingly cited downtown, the report states.

The City of Rogers said it has clearly heard this desire and is developing a new downtown master plan that will coordinate visions with insights gleaned in this Rogers-Lowell assessment.

Survey respondents were asked to rank four characterizations of downtown Rogers according to their opinion of what a future downtown Rogers should embody. The two characterizations that were most preferred were “civic and cultural heart of the community” followed very closely by “regional entertainment district.” Behind these two in order of importance to residents were “high quality residential neighborhood” and “employment center and economic engine.

Some focus groups were asked a similar question that also speaks to the residents vision for downtown.

They were asked, “If given the opportunity to inject 300 new residents or 300 new employees (jobs) in downtown Rogers overnight, which would help catalyze the type of downtown development that you feel is most appropriate?” 

Nearly every participant chose residents over jobs, which is a clear indication for community. They also mentioned that enhanced nighttime population (primarily residents) was more important to their vision of a vibrant downtown Rogers than enhanced daytime population (primarily jobs/employees). 

The assessment notes that while the focus groups hoped 300 new residents would catalyze additional development of restaurants (including outdoor dining), bars, music and performance venues, and private event spaces, they also hoped to see existing businesses stay open later in the evening, with additional street lighting to promote safety. 

Focus groups also spoke about needs for more green space downtown such as Frisco Park, which is also in need of an improved stage and better seating. They also suggested a visual buffer created by trees and other plantings between downtown and adjacent industrial areas. 

A lack of nightlife downtown and the distance from Interstate 540 are challenges going forward, according to the focus groups who said there are too many traffic lights and poor aesthetics along Walnut Street (the primary route) which create a major disconnect between downtown and Pinnacle Hills.

It’s important to note that Fayetteville and Bentonville each have vibrant downtown districts and are also located a good ways off of I-540. In addition, they each have a mature trails systems that links downtown to residential and other shopping and cultural districts.

Some of the focus groups and survey respondents said they would encourage young professionals who wanted more nightlife or cultural opportunities to reside in Bentonville or Fayetteville, or perhaps Bella Vista for golf or outdoor amenities.

The focus groups and survey respondents were asked what they would like to see preserved and changed in downtown Rogers. The buildings were the frequently mentioned, according to the report.

Residents viewed “the Peachtree”  hotel as a major asset that perhaps represents downtown’s greatest untapped potential. Finding a suitable investor to bring new life to the hotel in the form of mixed-use development was viewed among the consensus top priorities for downtown revitalization efforts, according to the report. Although most preferred that it remain a hotel with some street-level retail, some suggested condo conversions.

Overall, residents feel strongly about the need for a more vibrant downtown, and see this as an important component to their vision for the community’s future, the report states.

Link here for the complete report.

A proposed $20 million development of the Fianna Hills Country Club is no more after developer Lance Beaty of Fort Smith-based FSM Redevelopment Partners pulled the project from consideration at Tuesday's (April 1) regular meeting of the Fort Smith Board of Directors.

“I believe we had the vote (to approve a zoning request needed for the project to proceed). But it’s not just about the vote. It’s a business decision. It’s mathematics. ... In a deal like this let’s say that 100 things have to happen in an ordered manner for this to transpire. We got to say, number 60 and determined that it was not a deal for us. It’s that simple. We’ve conducted due diligence on this for months, and our risk-weighted analysis is that it is not a deal for us,”  Beaty explained.

Beaty declined to comment about efforts in recent days to scuttle the project, saying instead that, “I may have some additional comments at the appropriate time, but before the vote, I think it unwise.”

Fort Smith City Administrator Ray Gosack said the Board could still take action on the issue. He said the Board could table it, vote on it as is, or amend it. Gosack said Fianna Hills Country Club Manager Jim Shields has asked that the zoning issue be tabled until the May 6 meeting. According to Gosack, Shields said that would give club owners time to determine if there is other interest in the property and to see if the zoning change would help with that interest.

STORY UPDATE
The Fort Smith Board of Directors voted Tuesday (April 1) to table the proposed planned zoning district until owners of Fianna Hills Country Club can hear out offers from two other interested parties before moving forward.

Before the Board voted 6-1 to delay the PZD decision, City Director Keith Lau made his feelings known on the collapse of the planned development by Beaty and his business partner, Dr. Stephen Nelson, explaining that he had an e-mail from the country club's current owner threatening shut down should the PZD not go through.

"I have to operate on knowns and that's the known that I have to operate on the thought with my real estate experience that if that club goes dark, that if the golf course goes in disrepair, it is going to affect each and every property owner in Fianna Hills and I would hate to see that happen. That would be terrible. And in my guestimate, in my professional experience, that each and every owner will probably be dinged $10,000 worth of property up there and that's something that we can't allow."

Lau also said the controversy that erupted in the last several weeks surrounding Beaty's planned purchase and redevelopment of the club is an example of what drives investors and businesses to other cities instead of Fort Smith.

"I looked at it today and I'm thinking, 'What does this say about Fort Smith, how this all came down?' And people always ask me, 'You know, why isn't Fort Smith like Northwest Arkansas? Why isn't Fort Smith growing? Why aren't we doing what everyone else in the state is doing?' This is why we're not doing what everybody else is doing in the state. OK, what's wrong? It's our attitude, it's our what if it goes wrong attitude. What if we fail? It's not what if we succeed. I think everyone in this room thought that if this program that Mr. Beaty presented succeeded, that it would be an asset to the city of Fort Smith. I know it would have provided jobs. I know it would have provided economic development."

Lau also said he had a letter from the chief of staff from Mercy Hospital stating that the hospital supported the development, with City Director Pam Weber chiming in later to add that projects such as Beaty's now-scrapped plan were what would drive business recruitment in the region. During her remarks, Weber noted the far-reaching impact of the $20 million investment Beaty had previously been willing to make, asserting that the investment could have impacted the local economy by up to $60 million.

City Director Mike Lorenz said that contrary to what anyone may have thought, he and others were not opposed to the project, but instead to other land uses included in the PZD presented to the Board on Tuesday.

Also speaking at the meeting was Lisa Clay, who spoke with The City Wire last week and had a petition signed by more than 250 Fianna Hills residents asking that many conditional uses be removed from the proposed PZD if the Board were to approve it.

Clay did announce that she and several club members would meet with club owners on Thursday about purchasing the facility, though no formal offer is on the table.

Before the Board voted to table the item until the May 6 meeting, Lau attempted to rally support for voting on the PZDas presented, but received no support from fellow Board members. No further action on the item following the vote to table the issue.

INITIAL PLANS
Plans to redevelop the country club first came to light in November 2013 when Beaty confirmed that he and business partner Dr. Stephen Nelson were working with club owners David Mille and Jim Shields to purchase not only the club, but also the 18-hole golf course.

It was the second major planned investment for Beaty's company, which purchased the 35-acre site of the former Phoenix Village Mall when it was nothing more than a poorly-maintained site that included about 10 acres of structures. Since Beaty's purchase of the old mall site in January 2009, FSM Redevelopment Partners invested more than $10.5 million worth of improvements at the site, including a successful expo center that was open for about three years before closing to make room for a regional service center operated by Health Management Associates. In all, the former mall now houses more than 1,100 jobs.

CLUB CHANGES
The proposal from Beaty for the country club included the addition of guest suites for use by members and their guests, as well as the addition of a medical concierge service and other upgraded amenities. The country club would have also been gutted and rebuilt on its original footprint, expanding from a current square footage of 27,000 square feet to 85,000 square feet.

As part of the revamp of the club, FSM Redevelopment had developed a business plan that would have members joining the facility for a $30,000 fee that could be paid out over time, similar to the membership fee members of the club have already been paying. In order to make the club a reality, Beaty had said he would need about 500 commitments with individuals making refundable deposits of $1,000.

While there was some vocal opposition to Beaty's plan for Fianna Hills Country Club, things appeared to be moving in the right direction on March 11. It was on that evening that the Fort Smith Planning Commission approved a planned zoning district at the site of the country club by a vote of 9-0.

As the project moved closer to Tuesday's vote, more opposition started making their voices heard and left the project in limbo.

In statements to The City Wire published March 17, there was not a consensus among the Fort Smith Board of Directors on whether or not the PZD would pass the final hurdle of Board approval. Fort Smith Vice Mayor Kevin Settle said while he supported some aspects of the club, including the renovation and addition of member suites, he had about other uses included in the PZD.

"The concerns that have been brought to my attention by many citizens in the Fianna Hills area are the other potential developments that are being asked in the PZD. These other potential developments are something that I am going to research and get a better understanding on how they could affect the existing homeowner property values."

Fianna Hills resident Lisa Clay was among those expressing concern about the proposed uses within the PZD. Clay eventually launched a petition which garnered more than 200 signatures asking the Board to pass an amended PZD that would have removed several land uses.

Pat Ross, president of the Fianna Hills Property Owners Association, said a conversation with Beaty occured in which Beaty allegedly said he would turn the site into an office complex. Beaty said March 27 that Ross' allegations were "simply not true or is completely out of context."

CLUB CLOSING?
Clay said at the time that she would like to have a company come in and keep the country club just that, adding that she was aware of companies interested in purchasing the facility. But when reached for comment, Mille said no other buyers had approached him about purchasing the country club, which he said is heavily subsidized by his other business ventures, which include Mid-South Steam Boiler and Engineering.

He also said that should the Board not approve the planned PZD for the land he currently owns, he would not waste any time shutting down the country club.

“It’s not an idle threat. I assure you. My problem is that I’ve been subsidizing the operating capital of that club for years, and it’s gotten to the point that it’s taking a toll on me financially. And if he (Beaty) doesn’t buy it, i’m going to close it immediately.  ... when it starts to hurt your other businesses, I mean, I’m just not going to do it anymore.”

Continuing, Mille noted: “These people opposing this and spreading rumors and bad information to try to stop this, they don’t see what they are doing to Fort Smith. I have a lot of friends who are members there and I enjoy having a place for them to buy a drink or whatever, but I can’t keep subsidizing all that just because they are friends. ... Nobody is lining up to do this (buy the club), and so if this (Beaty plan) doesn’t work, you’ll see a lot of weeds and grass on the course, because I’m not doing it anymore.”

Efforts by Wal-Mart to build the next generation of retail has resulted in investments of about $2 billion in tech startups since 2011, according to Leon Nicholas of Kantar Retail. These investments are helping the retailer organize content and win favor with Gen Y, which if successful could place the retailer two big steps ahead of the retail pack.

In what could be a warning to other retailers Nicholas said Wal-Mart isn’t investing in technology for the fun of it, and the company expects a return over time. 

Carol Spiekerman, CEO of NewMarketBuilders, said Wal-Mart’s strategic investment plan to acquire multiple tech capabilities is “smart, bold and aggressive.”

““Instead of sitting on their hands looking for that one big fantasy acquisition, Wal-Mart has instead become highly opportunistic, picking up multiple companies that fill specific niches.”” Spieckerman said.

Kosmix was acquired in 2011 and is the foundation for @WalmartLabs, which Spieckerman said set the stage for other 10 investments as the company seeks to build out its tech capabilities that she says are key to future sales and user engagement.

Since then Wal-Mart has assembled a global crop of tech savvy professionals at @WalmartLabs who are building a very different type of retail operation. Neal Ashe, CEO of Global eCommerce for Wal-Mart Stores, has said these strategic acquisitions and those to come will take Wal-Mart further and faster toward the next generation of retail which is occurring at intersection of the physical and digital worlds.

Analysts agree that the work at @WalmartLabs is data rich with layers of analytical and predictive capabilities beyond what competitors and suppliers have seen, or are likely ready to process.

CONTENT DRIVEN
Wal-Mart is collecting a slew of consumer related-data from social media, analytical applications and weather patterns that goes way beyond point-of-sale data that has been the key metric for the industry and its suppliers for the past three decades.

”“Wal-Mart is a media company and therefore a media spend for suppliers. The opportunity is to position for multi-media content opportunities that leverage Wal-Mart’s entire platform.” Spieckerman said. “This is the forefront of a retail movement for mainline brick and mortar retailers. Suppliers need to catch up with this concept.”

She said there is a growing data divide between retailers and suppliers, but Wal-Mart continues to extend invitations into its fold. The point-of-sale data is a just small sliver of the data ecosystem today, Spieckerman said. And the same goes for marketshare or other post sale metrics which has been what suppliers and retailers have typically shared in the past. 

That is something Wal-Mart seeks to change. Key marketing executives such as Stephen Quinn have repeatedly spoke of the retailer’s desire to share content strategies with key suppliers.

“I don’t know how many different ways Wal-Mart can say it, invest in our platform and we will invest in you,” Spieckerman said of Wal-Mart’s request. “One hand washes the other. They want to see suppliers hand over the content they have created. Wal-Mart has already made the investments and suppliers can benefit if they turn over some of their assets in the form of user (and) shopper content.”

Stephen Quinn, chief marketing officer at Walmart U.S., said during the recent Year Beginning Meetings that the retailer was focused on the “Big Three: Big insights, Purposeful Positioning, Total Experience.” He said the retailer would use its Big Data capabilities to drive more content marketing. He reiterated Wal-Mart’s desire to partner with suppliers on marketing efforts across multi-channels saying the retailer would measure and report the effectiveness.

Quinn also said Wal-Mart would lever Big Data and Weather Fx – a service through the Weather Channel – to drive merchandising and ad campaigns.

Spieckerman believes the retailer can recoup the value of its acquisitions and add to its platforms and its suppliers’ platforms at the same time when they can partner on content strategies.

USER ENGAGEMENT
The acquisitions of YumPrint and Social Calendar are fostering Wal-Mart’s ability for user engagement, something Spieckerman said is a long way from the old-line retailer mindset of studying sales data.

User engagement is nothing more than getting to know your potential customers who may become loyal shoppers or never spend a dime. By acquiring these two companies, Wal-Mart also gained access to the respective user bases which they can engage. Spieckerman said this path-to-purchase data is a great place for suppliers and retailers to collaborate as they organize and share content around brands, that could eventually lead to user engagement and shopper loyalty.

For example: YumPrint features recipes, which involve food ingredients — a common thread for Wal-Mart and its CPG food suppliers. Spieckerman said suppliers can start by going after this type of low hanging fruit. 

She said the content sharing conversations should not necessarily be directed to Wal-Mart buyers. Suppliers should be reaching out to the new content and emerging media personnel which are being added regularly to the retailer’s payroll.

“Suppliers can’t be waiting for a magic pill for content, they are going to have to look at niche opportunities. It’s not a single point of contact. Soon, there will be a whole new criteria for becoming a Wal-Mart supplier. Price and product aren’t the only levers the retailer is pulling today and just like technology is pulling retail along, @WalmartLabs and other retailer innovation incubators are pulling headquarters along,” Spieckerman said.

WOOING GEN Y 
Nicolas said Wal-Mart’s tech investments are very much in tune with their efforts to reach Gen. Y consumers, also referred to as Millennials. According to Nielsen, this 77 million-strong consumer group represents a $200 billion opportunity, with more spending power in the coming years.

“Investing in Millennials is absolutely the thing to do,” said Beth Brady, president, segmentation and local market solutions for Nielsen.

Brady said during a March 25 webinar that retailers and brands should invest now if they want to capture this demographic that is very different from past generations. Personalized deals, resonate with Millennials, something Walmart.com is apt to experiment with at some point given its ability to engage in distinct email specials with its users. A two-way dialogue is also important to Millennials, Brady said. This is also something Wal-Mart is now able to do because of its growing user base from each tech acquisition.

It is no secret that Millennials are plugged in. Some 72% regularly use FaceBook and these users are also adept at other mobile and social applications. She said they are driven by deals, but they also desire authenticity in their purchases. While Millennials are brand loyal, they also seek labels that share similar values and represent good causes.

“They are comfortable with tech and trust social media,” Brady said. “In fact, social media is the new consumer report.”

The value of building permits in Fort Smith, Greenwood and Van Buren were a combined $24.913 million in March, up 203.96% compared to $8.196 million in March 2013.

For the first three months of 2013, permits for the three cities totaled $41.787 million, up 50.9% compared to the $27.691 million during the same period in 2013.

FORT SMITH
The city of Fort Smith issued 191 permits during the month of March, nearly even with the same month last year, but the permit values totaled $20.410 million last month, up 197.7% compared to $6.856 million during the same period last year.

The primary driver of Fort Smith's higher totals was the $13.3 million building permit issued for the new Mill Creek Wastewater Pump Station, located at 210 Navy Road.

Another large project pushing totals higher is an expansion at Darby Junior High, valued at $1.674 million, as well as a $1.1 million permit issued for a new immigration office at 4624 Kelley Highway. The Kelley Highway site is the former home of what is now known as KNWA-TV and its now shuttered Fort Smith newsroom. The station consolidated newsroom operations to its Fayetteville newsroom in 2006 when Oklahoma City-based Griffin Communications sold the station to Irving, Texas-based Nexstar Broadcasting, leaving the former television station mostly unoccupied since that time.

In addition to the three large commercial projects, the city of Fort Smith issued 120 residential building permits worth $1.641 million, a drop from March 2013 when the city issued 125 permits worth $2.525 million.

GREENWOOD
A total of six permits were issued for the city of Greenwood in March, totaling $373,676. That represents a 43.66% decrease from the same period in 2013, which saw $663,300 in permits.

VAN BUREN
The city of Van Buren saw an increase of 510.75% from $676,000 in March 2013 to $4.129 million last month. The higher values in the city last month was largely due to construction of the city's new police headquarters, which is being constructed at the former Sherman's Grocery site. The new police station has an estimated value of $3.567 million.

Other construction in the city was relatively minor, with a spattering of permits issued across various categories, including four permits worth $89,000 for residential remodels, the second largest category after commercial construction.

2013 RECAP
Combined values in the three cities during 2013 were $203.037 million, compared to $157.32 million during 2012. The 2013 value is above the $201.079 million in 2011.

Fort Smith closed 2013 with the largest share of valuations, logging $177.687 million (a one-year increase of about 30.24% from $136.428 million in 2012), while Van Buren was the next largest with $17.067 million (a one-year increase of 38.96% from $12.282 million in 2012). Greenwood posted an additional $8.283 million, the only city to show a decrease from the previous year's total of $8.609 million (a decrease of 3.79%).

The gains in the Fort Smith market were largely from industrial construction projects at Chaffee Crossing, the construction of Mercy's new orthopedic hospital along Phoenix Avenue and various municipal construction projects across the city.

Much of Arkansas could face large hail, damaging winds and tornadoes on Wednesday and rain the rest of the week, with the Fort Smith and Northwest Arkansas areas almost at the center of the large weather pattern.

AccuWeather.com reports severe thunderstorms on Wednesday will threaten 18 million people from northern Texas to eastern Kansas, much of Missouri and central and southern Illinois. The threat on Wednesday includes the potential for a couple of strong tornadoes.

The severe weather on Wednesday is part of a multiple-day severe weather event that will continue through the end of the week and will reach parts of the Midwest, East and South.

Cities in the area of concern for dangerous and disruptive weather conditions Wednesday and Wednesday night include Dallas; Wichita, Kan.; Oklahoma City and Tulsa, Okla.; Little Rock and Fort Smith, Ark.; Kansas City, Springfield, Joplin and St. Louis, Mo.; Shreveport, La.; Memphis, Tenn.; Paducah, Ky.; Evansville, Ind.; and Mt. Vernon, Ill.

Travel delays and difficult driving conditions are possible along I-35, I-40, I-44 and I-70 in the region.

The storms spanning Wednesday and Wednesday night will bring large hail, high winds and flash flooding to a number of communities. However, a few of the storms can bring a tornado.

According to AccuWeather Enterprise Solutions Senior Vice President and Chief Innovation Executive Mike Smith, "There is the potential for a couple of large tornadoes along the Kansas/Oklahoma border late Wednesday afternoon and evening."

While the coverage of severe weather is forecast to expand greatly on Thursday, people should stay on alert prior to and following the main event. Smith passed along a saying among storm chasers, "The day before the day is often the day that catches people by surprise."

The storms late Wednesday will fire near the boundary of dry air to the west, warm, moist air to the southeast and cool air to the northeast.

According to Severe Weather Meteorologist Justin Pullin, "Storms in southern Kansas and northern Oklahoma later Wednesday will not have much competition and will be in a favorable zone with strong winds at mid-levels of the atmosphere.”

Even late in the day Tuesday, a few storms over parts of north-central Texas and central Oklahoma can become severe with an isolated tornado.

A Tuesday (April 1) meeting of the Sebastian County Election Commission provided information on complaints about the consolidation of polling sites in rural Sebastian County, as well as the look for a new election coordinator following the resignation of former Election Coordinator David Mansell.

The polling site consolidation involved moving 7,142 voters from previous sites to newly consolidated, existing sites and was approved at the commission's Feb. 27 meeting.

Since that time, the commission has fielded several phone calls from residents in the Bloomer community who are upset that their precinct was closed, requiring a further drive for many of the 500 voters in the community. According to Election Commission Chairman Lee Webb, he has fielded 18 calls about the consolidations, with 13 of those being residents in the Bloomer community.

While some locations, including Central City, were under consideration for consolidation before Bloomer, Webb said laws dictate that incorporated cities and towns must have at least one polling site. With Bloomer not being an incorporated city or town, it made the list — a list which itself had been narrowed from 13 possible sites to seven, he said.

Due to the number of complaints about the polling site at Bloomer, Webb said the commission would reconsider the site closure following the May 20 primary and possible runoff election three weeks later, adding that the commission would be able to compare stats from the last election and the upcoming May 20 primary to determine if a reversal of the commission's Feb. 27 decision should take place.

"I told them we would readdress the Bloomer site and see if there was anything else could do there, see if it affects the turnout much in that area there. We'll be able to tell by the precinct number how it affected the turnout and we'll look at that. That will be the best gage if it affected anything. We'll look at that precinct number from Bloomer and see if they turned out and went to Union or if it was just a select group of people."

Webb added that the calls from Bloomer caught his interest, especially considering the lack of calls from larger precincts that were consolidated within Fort Smith and other areas.

"Because even larger precincts, I got fewer phone calls on. Like Haven Heights, you'd think I'd get a bunch of phone calls on, but I just got the one from a lady who was concerned she was in a different Senate district now."

County Judge David Hudson was on hand at Tuesday's meeting and addressed the search for a new election coordinator, following the resignation of newly-hired Election Coordinator David Mansell less than two weeks ago. Mansell resigned following a series of errors, which included getting the order of candidates for lieutenant governor wrong on the Republican ballot as well as misspelling the last name of U.S. Rep. Tim Griffin, who is one of three Republican candidates for the lieutenant governor's post. Hudson said the search is ongoing for a new election coordinator, which he said would ideally begin work before the end of April. In the absence of an election coordinator, former Election Coordinator Jerry Huff has agreed to stay on through certification of the May 20 primary election.

Webb also said even in light of the errors attributed to Mansell that resulted in a re-printing of Republican ballots at a cost of $5,200, ballots would still be delivered by April 3. In all, there will be 18,345 Republican ballots, 8,980 Democratic ballots and 1,423 non-partisan ballots, which Huff said was based on the previous election's voting totals.

Huff also briefly addressed a lawsuit in Pulaski County, where that county's election commission has received conflicting information from the state Board of Election Commissioners and the Attorney General's office on how to count absentee ballots. The Board adopted a rule that allows absentee voters time to prove their identity, while Attorney General Dustin McDaniel said in February that those voters should not be given additional time because it is not clearly spelled out in the law.

Huff said the state board's rule is binding on the Sebastian County Election Commission, though the attorney general's opinion would give commission "sovereign immunity," protecting the commission from a lawsuit should it need to.

A ruling on the lawsuit is expected before the May 20 primary, though it could be delayed should the Republican Party of Arkansas be successful in having McDaniel's office removed from defending the law it wrote a legal opinion against. The Arkansas GOP requested to represent the state board on March 26 and also filed a proposed motion which would dismiss the Pulaski County Election Commission's lawsuit. No decision on representation of the proposed motion has yet been made.

Overall Arkansas tax revenue is above forecast for the first nine months of the fiscal year, with sales and use tax collections – an indicator of consumer spending – continues to miss budget forecasts. However, March sales and use tax revenue was up more than 7%.

Year-to-date gross revenue (July 2013-March 2014) totaled $4.456 billion, 2.9% above the same period last year and above forecast by 1.1%, according to the report issued Tuesday (April 4) by the Arkansas Department of Finance and Administration.

Collections have declined relative to how the fiscal year began. The gross collections were up 3.4% after the first six months of the fiscal year, and 0.9% above forecast. After the first four months of the fiscal year, the gross revenue was up 4.1%.

Individual income tax collections for the fiscal year totaled $2.154 billion, up 3.1% from last year and 2.1% above the budget forecast. Year-to-date sales and use tax collections were $1.629 billion, up 3% above last year and 1% below the budget forecast. The sales and use tax collections were up 4.8% four months into the fiscal year and up 3.9% six months into the fiscal year. Income taxes and the sales and use tax collections are the two primary sources of state revenue.

The corporate income tax collections for the first eight reporting months of the fiscal year totaled $305.8 million, up 3% compared to last year and 4.5% above forecast.

MARCH NUMBERS
March gross revenue was $546.4 million, up 6.9% above last year and 5.8% below forecast.

John Shelnutt, head of the Department of Finance and Administration’s Economic (DFA) Analysis & Tax Research division, provided this analysis of the March numbers: “All major categories of collections were above forecast in gross revenue terms and lower-than expected refunds provided an extra gain in net available funds. The monthly swing largely offsets the weakness in the prior month and adds to year-to-date gains going into the largest, and potentially volatile collection month of April.

“Results were significantly impacted by: 1) rebound in Sales and Use tax compared to year ago and versus forecast, 2) components of Individual Income tax compared to forecast, and 3) a decline in both individual and corporate refunds compared to forecast and year ago refunds.

“Among smaller revenue categories, most categories exceeded forecast except Tobacco tax collections were down sharply.”

Individual income tax collections during March totaled $246.6 million, up 12.6% compared to March 2013 and above forecast by 9.9%.

Sales and use tax collections during the month totaled $183.1 million, up 7.4% from last year and 3.7% below the forecast. Sales and use tax collections, considered a barometer of consumer confidence, ended fiscal year 2013 on a down note. Collections in the segment for the fiscal year totaled $2.124 billion, up just 1.1% compared to the 2012 period, and 1.4% below forecast.

The DFA in early December updated the projections for 2014 and 2015 fiscal year revenue. Gross general revenues are estimated at $6.203 billion for the current fiscal year (July 1, 2013-June 30, 2014), down about 0.2% from fiscal 2013 collections.

The revenue forecast for fiscal year 2015 is $6.333 billion, up just 2.1% above the 2014 estimate. The 2015 estimate includes an anticipated reduction of $85.2 million from tax cuts approved in the 2013 Legislative Session.

OTHER TAX COLLECTIONS
Alcoholic beverage
July 2013 - March 2014: $37.6 million
July 2012 - March 2013: $36.5 million

Games of skill
July 2013 - March 2014: $28.6 million
July 2012 - March 2012: $25.4 million

Tobacco
July 2013 - March 2014: $162.5 million
July 2012 - March 2013: $167.9 million

Insurance
July 2013 - March 2014: $66.3 million
July 2012 - March 2013: $63.4 million

COLLECTIONS HISTORY
Tax collections during fiscal year 2013 (July 2012-June 2013) totaled $6.214 billion, up 4.9% above the previous fiscal year and up 2.5% compared to budget estimates. One result of the gains was a budget surplus of $299.5 million.

Fiscal year 2013 marked the third consecutive year of year-over-year gains. Arkansas tax collections reversed a negative two-year slide in the 2011 fiscal year, with collections up 4.5% in the July 2010-June 2011 period.

State tax collections for fiscal year 2011 totaled $5.673 billion, up 4.5% above the $5.43 billion in the 2010 period.

The biggest declines in the 2009 and 2010 fiscal years were with individual income tax collections and sales and use tax collections.

The 5th annual The Compass Conference will be held April 17 and will feature an update on economic conditions – based on data from The Compass Report – in the Fort Smith metro area during 2013 and future opportunities and challenges of the regional medical sector.

The luncheon event is set for 11:30 a.m. to 1 p.m., April 17 and will held at the Hennessy Center inside Mercy Fort Smith hospital (see map at bottom of story). Seating is limited, and tickets are $35 each, or a table of 10 for $325. To reserve a seat or table, contact Daelene Brown (dbrown@thecitywire) or Kathy Reed (kreed@thecitywire.com) by e-mail or phone (242-2800).

THE COMPASS REPORT
The conference is part of The Compass Report, which is the only independent economic analysis of Arkansas’ top three metro areas (Central Arkansas, Northwest Arkansas, Fort Smith region). The report, produced and managed by The City Wire, measures four leading and four current economic indicators to provide a grade for a regional economy. Fort Smith-based Benefit Bank has been the primary sponsor of the report for five years, and Cox Communications has been a secondary sponsor.

Regional economic conditions began to improve in 2013, according to the report issued for the third quarter of 2013. Slight but continued improvements in economic trends for the Fort Smith region during the third quarter of 2013 has resulted in the best quarterly grade for the economy since the first quarter 2009 launch of The Compass Report. A third quarter 2013 grade of C+ was improved over the C in the second quarter and the C- in the third quarter of 2012.

Economist Jeff Collins, who conducts the data collection and analysis for The Compass Report, said employment and other data indicate that the Fort Smith region “has performed reasonably well” during the first three quarters of 2013. However, Collins said the improvements will need to continue if the region is to return to employment levels seen prior to the recession.

MEDICAL SECTOR FORUM
A panel discussion on the medical sector will focus on highlighting conditions within the sector. Panelists will be Doug Babb, CEO of Cooper Clinic; Jeremy Drinkwitz, chief operations officer of Sparks Health System; Dr. Cole Goodman, president of Mercy Clinic Fort Smith; and Kyle Parker, chairman of the Fort Smith Regional Healthcare Foundation.

Medical sector expansions, changes in ownership and news of a planned medical college are likely to be the major regional stories in 2014. The sector also continues to be a job generator for the region.

In the regional Education & Health Services category, employment was 16,400 during January, down from 16,600 in December and below the 16,900 during January 2013. Annual average monthly employment in the sector has steadily grown since 2005 when it reached 14,000. In 2012 the average was 17,000, but fell slightly to 16,800 in 2013. Employment in the sector reached a record 17,300 in October 2012.

Following are some of the top news stories from the area medical sector during 2013 and early 2014.

• Fort Smith could soon be home to Arkansas’ first college of osteopathic medicine and one of just 31 in the U.S., thanks to a more than $58 million investment from the Fort Smith Regional Healthcare Foundation (FSRHF) and a grant of 200 acres from the Fort Chaffee Redevelopment Authority (FCRA).

• Naples, Fla.-based Health Management Associates (HMA) announced in April it would build a regional service center in Fort Smith and employ more than 500 with average annual salaries potentially exceeding $40,000. At the time, HMA was the parent company of Sparks Health System in Fort Smith and Summit Medical Center in Van Buren. The facility opened in September. Franklin, Tenn.-based Community Health Systems has since acquired HMA in a $7.6 billion deal.

• Work continued during 2013 on a plan announced in August 2011 by the St. Louis-based Sisters of Mercy to invest $192 million in the Fort Smith area as part of a 10-year plan to invest $4.8 billion in its operations in Arkansas, Kansas, Missouri and Oklahoma. Part of that investment was completion of the $42 million Mercy Orthopedic Hospital in Fort Smith that was estimated to add 100 jobs.

Dennis Smiley, doing business as HDS Holdings LLC, was sued March 25 by Delta Trust & Bank in Benton County, over a personal loan default – it was latest shoe to drop in an unfolding saga surrounding Smiley’s sudden resignation March 13 as president of Arvest Bank Benton County. 

He also faces a loan fraud investigation first reported by Arkansas Business on April 2. This report claims one of the loan payments did not clear Smiley’s bank account on March 10, which raised a red flag that led to his resignation.

Sources who asked for anonymity have told The City Wire that numerous Arkansas banks had lent Smiley money over the past four years and he each time he pledged the same restricted Arvest shares for collateral. Smiley reportedly borrowed an estimated $4.5 million from more than a dozen Arkansas banks dating back to 2009, according to Uniform Commercial Code filings with Arkansas Security of State. 

On Feb. 20, Delta Trust & Bank made its loan to HDS Holdings — H. Dennis Smiley Jr. of Benton County and his father H. Dennis Smiley Sr. of DeQueen — in the amount of $245,126. Smiley pledged 4,264 shares of Arvest Bank stock for collateral. The lawsuit claims Smiley failed to make the first installment on March 20. 

“The defendants have confessed that they are either unable or unwilling to pay the obligations to the lender. The defendants have caused the collateral to be substantially impaired and they are in nonmonetary default under the express terms of the note and security agreement and guarantee,” the complaint states.

The bank has asked for a judgment in the amount of $245,126, accruing interest until the debt is paid. 

Co-defendant Henry Dennis Smiley Sr. is chairman of First State Bank of De Queen, also on the list of banks involved in the federal fraud probe. The Sr. Smiley told Arkansas Business he was brokenhearted and could not talk about his son's financial and legal problems.

MISSED PROTOCOL
In an information age, one has to ask how this could happen given that banks are supposed to file certain protocol when making a secured a loan.

“When a banker makes a loan that is collateralized with securities, they are to file a UCC Financing Statement with the Arkansas Secretary of State. But they are also supposed to check to make sure that collateral has not already been pledged for other loans. When possible, banks like to hold the title or proof of title in their vaults until the loan is repaid,” said Phil Knight, a Northwest Arkansas-based banking consultant and loan broker.

The Uniform Commercial Code finance statements, which are available online, indicate loans dating back to February 2011 where H. Dennis Smiley pledged shares of Arvest Bank Group Stock, which are bestowed to top executives as bonus pay. These shares had value of just under $400,000, according to the last loan made by Delta Trust & Bank. At least 10 banks claimed all or part of the same collateral for loans made between 2011 and 2014.

“Using fraudulent collateral is nothing new. It can happen when banks don’t do their homework and follow through with the proper protocol for loans,” said John Dominick, banking consultant and professor of finance at the University of Arkansas. “This won’t be the last time.”

Garland Binns, attorney with Little Rock-based Dover Dixon & Horne, said banks make loans on good faith and it may be difficult to determine wrongful intentions in advance. He also points to the UCC Finance Statements as the proper protocol for banks to register their interest as lien holders, a record open to the public.

Knight said lenders typically would require a letter of guaranty from the stock issuer in a situation where the stock is nonassignable, such as restricted or closely held stock like Arvest Bank Group.

“Absent that guaranty, or banks asking for it, is done more than you might think. Bankers like to make to loans, and they are unsuspecting of their friends and people they have known for years,” he said.

Arvest has been mostly silent on the high profile resignation, except to say it was of a personal nature.

BANKER BORROWING
Dominick said it is not uncommon for bankers to borrow from other institutions, they do so for independence. 

“A bank has be careful not to make too many loans to its own officers,” he said.

During the Northwest Arkansas real estate boom it was not uncommon for bankers to secure loans from other institutions, especially those dabbling in real estate market themselves. 

Knight said there is never problem until the loan can’t be repaid. He said regulators will also look past these loans as long as they are in good-standing. But, when things go south, there is nowhere to hide.

“Banks have zero tolerance for officers who default on loans made with other banks,” he added.

FALLOUT CONTINUES
The Delta Bank & Trust is the first civil lawsuit filed, but given the scope of the investigation Smiley could face criminal fraud charges. 

It is unclear how many banks are involved and to what extent. Based on the UCC Financing Statements four banks made loans to Smiley since Nov. 27, each pledging the same collateral.
• First Western Bank, Booneville
• First National Bank, Fort Smith
• First State Bank NWA, Huntsville
• Delta Bank & Trust, Little Rock

Legacy National Bank in Springdale also is encumbered by Smiley’s actions, but Legacy President Don Gibson, chose not to comment. Legacy did not file a UCC Financing Statement so it is unclear to what extent that bank is involved.

Other banks known to be involved include:
• First Security Bank
• Chambers Bank
• Bank of Fayetteville
• Signature Bank
• First State Bank DeQueen
• First National Bank of Mountain Home

David Bursteen and Ines Brigman have spent the past 18 months trying to get their Legends Home Bedding products on the shelves of Walmart U.S. stores. Armed with passion for their work this duo bootstrapped their enterprise in early 2012 first pitching their licensed Elvis inspired bedding to Wal-Mart in a letter addressed to “Dear Buyer.”

“I am persistent and so I waited a couple of weeks and reached out to Wal-Mart again and was told they didn’t feel the product was right for them at the time. But, they encouraged us to enter the ‘Get on the Shelf’ contest. We had no idea what that was, and when we looked it up we had just 48 hours before the contest deadline July 31,” Bursteen said during his recent visit to Bentonville.

The duo said they looked high and low to find someone who was willing to help with them with a presentation entry to “Get on the Shelf” on a consignment basis. 

“We found this guy who did it for $84 upfront with promise of a bigger payment if we won the whole contest, never really believing we would win,” Brigman said.

They stayed up for two straight days working on a slide show presentation, because they didn’t have time to coordinate a video commercial.

Legend’s Home Bedding, was able to tap into the Elvis fan base for vote support and not only entered Walmart.com’s “Get on the Shelf” competition, but they also won it. Bursteen and Brigman’s licensed Elvis inspired bedding was one of two grand prize winners in the 2013 contest.

“During the ‘Get on the Shelf’ contest we contacted the Elvis Presley Foundation and asked if they would help us spread the word. When our bedding popped up on their Facebook page it got 68,000 likes and 4,500 comments in 24 hours,” Bursteen said.

Brigman said they continue to use their Facebook page to stay in touch with fans and test new design ideas.

The bedding, made in the U.S., is sold on Walmart.com as well as virtual competitor sites Amazon and Ebay and the company just signed a deal with Bed, Bath, Beyond. While the duo is excited about the growth of their online sales, they still want to get the product inside Walmart Supercenters which brought Bursteen and Brigman to Bentonville on March 20 to meet with a team of six Wal-Mart buyers for home bedding.

“When we met with the Walmart.com buyers it felt like we were walking on the red carpet having just won the online competition. The buyers in Bentonville were harder to read, though very attentive during our presentation,” Bursteen said.

He added that there is not a category for licensed adult bedding, but there is demand for the product and built-in fan bases with American legends such as Elvis Presley or Marilyn Monroe. When asked what Bursteen’s next step would be, he joked that the duo planned to stay in town until they got a purchase order. However, he said getting on the retailer’s physical shelf is a great deal more tedious than selling through Walmart.com. 

“We are up for the challenge and look forward to our next communication from Wal-Mart,” Bursteen said.

LICENSING THE KING
Bursteen, a collector of Elvis memorabilia, sought to get a license for Elvis inspired bedding in late 2012. It took a little more convincing for Brigman, who just more recently become an Elvis fan. 

“We were sitting around one day (September 2012) talking about the possibilities if we could get the licensing. I thought it’s probably very expensive or it’s not even available. He sends a quick email to Elvis Presley Enterprises asking if the home bedding licensing is available. Within five minutes he got a one-word ‘YES’ reply,” Brigman said.

Bursteen said he told them he would do his best to get the product in Wal-Mart Stores, because outside of music, the retailer has not carried Elvis licensed merchandise. They secured the license in late 2012 with a small investment upfront and royalties on merchandise sold. 

“There are no companies doing licensed adult bedding. It goes against the grain. We know there is demand for the product, but no one has been willing to take the chance, until now. It’s like an intersection with three gas stations, we have opted to put a hand car wash on the other corner,” Bursteen said.

He compared his swim upstream to something Wal-Mart did 30 years ago, when they introduced Sam’s Club. He said back in the day no one thought women would shop a wholesale club like Sam’s or Costco because the packaging is too big and bulky, merchandise is displayed on pallets and there is no service with bagging or carry out.

“We don’t think you have to be a kid to enjoy licensed bedding and our growing business is proof,” Bursteen said.

FUTURE PLANS
The tandem said they are excited about the possibilities of licensing more legends and expanding their bedding line. Four months ago Elvis Presley Enterprises was sold to Authentic Brands Group out of New York.

“Ironically they own a brand called Marilyn Monroe,” Bursteen said. “If we can perform with Elvis, the next logical license would be Marilyn.”

Brigman said the company has committed to manufacture the bedding in the USA, although the fabric is imported from China. This allows the “Made in the USA” tag, which Wal-Mart also prefers. 

“Making the products here involves lots of suppliers for us. It seems there is not a turnkey operation for bedding, which adds to the overall cost. We do believe it’s worth the extra effort,” she said.

The couple told the local buyers they had big plans to help cross-merchandise the product once it gets into the stores, displaying Elvis’ music with the coordinating bedding, that is song inspired, such as the “You are Always on My Mind” collection.

“This year is the 60th anniversary of Rock & Roll and we would like to bring Elvis to life inside Wal-Mart Stores across the country. We would bring in Elvis impersonators to perform and take photos paying tribute to the King of Rock & Roll. We think Wal-Mart is a great venue for this type of celebration as Wal-Mart shoppers and Elvis fans are two demographics the closely overlap,” Bursteen said.

LESSONS LEARNED
Startups are nothing new for Bursteen who said he’s spent his entire career working for startups and dabbling in entrepreneurship. Legends Home Bedding is his first attempt to found and run a company with the help of his two partners.

“The sky is the limit. We are finding out that there is always room for good ideas and those passionate enough to see them through. I would tell other potential suppliers to go for it. If you have a product ready to sell and have found a need, then go for it,” Bursteen said.

The couple said they dumped their savings into making the product as soon as they realized that it would sell. When the time came to test that theory with Get-on-the-Shelf, they were able to deliver the product buyers wanted without long lead times.

“Having the product ready to go is huge because consumers don’t want to plunk down $100 for something they have to wait 100 days to get. There were some really good products that competed against us in the ‘Get it on the Shelf’ contest, but they were concepts only, still several months away from production,” Bursteen said.

It may not be the way a candidate wants to introduce themselves to potential voters, but it was exactly what happened to Sen. Bruce Holland, R-Greenwood. A mailer delivered to voters in Senate District 9 identified promises Holland claims to have kept since first being elected to the Arkansas Senate in 2010. The first promise?

"Cut taxes by over $175 annually.”

In a telephone call Wednesday (April 2), Holland made clear that the tax cut was much larger, and that the mailer missed an important word.

"It was supposed to be $175 million, that's the combination of all the tax cuts passed last session  — the income tax, the capital gains tax, tax cuts for veterans, the grocery tax — a combination of all of those taxes.”

He also said he would like to continue pursuing tax cuts should he be elected, and said he was in favor of former U.S. Rep. Asa Hutchinson's tax plan, unveiled as part of the former congressman's campaign for governor. The plan would reduce the income tax rate from 7% to 6% for Arkansans earning between $34,000 to $75,000 a year, and from 6% to 5% for those earning between $20,400 to $33,999 annually, according to a report by Talk Business.

"I support reducing the state income tax," he said. "I think that's important to economic development and I think it's the right thing to do. Arkansas has one of the highest (tax rates) among neighboring states. The more Arkansans have in their pocket, the more spending power they have.”

Holland said he was a co-sponsor on many of the tax cut bills and voted for them all.

Also in the mailer, the senator boasted that he "Co-Sponsored and helped pass the most pro-life legislation in the country," which he explained was the 12-week abortion plan, which was recently struck down by U.S. District Judge Susan Webber, who said the bill was unconstitutional, citing other court decisions that do not restrict abortion until the fetus is “viable."

While the law was struck down, Holland said he was proud to have voted for the legislation.

"When something is important to your constituents, you vote for it. It is very important to the people that I represent. I campaigned on being pro-life. That's what my voters expect me to do and I represent them.”

He took issue with the judge's ruling, saying that the bill "should stand up to Constitutional scrutiny.”

"But you take that chance with any bill you pass. A lot of the legislation does get challenged. But it doesn't mean you don't do the right thing and vote in favor (of it).”

It was during his discussion of his pro-Second Amendment views that he took one of the first noticeable shots of the 2014 primary at Rep. Terry Rice, R-Waldron, who is challenging Holland's re-election. The mailer said Holland had passed "legislation to expand gun (owner's) rights," and Holland explained during the interview that his pro-gun record was solid.

"The Advanced Arkansas Institute gives me a 100% ranking with the Second Amendment and gives Terry a 74%, based on the bills presented last session.”

Holland also said he was in support of Act 746, which is caused much controversy as Attorney General Dustin McDaniel said the bill does not allow for open carry of firearms, while several prosecutors across the state have said it does and have directed officers to not arrest anyone openly carrying.

Rice was quick to respond in an e-mail, calling Holland's claim nothing more than "scare tactics.”

"My commitment to the 2nd Amendment is clear.  I’m a lifetime member of the NRA, a concealed carry permit holder, I was a co-sponsor of Act 746 [the Open-Carry bill] in the last legislative session, I have voted to allow concealed handguns in places of worship, I voted to allow concealed handguns on college campuses, I have voted to protect the confidential information of concealed carry permit holders, and I voted to prohibit the Governor from regulating firearms in emergencies.”

Holland's mailer is not the first to show up across the district. A mailer from Rice attempts to tie Holland to Obamacare through his votes in favor of the private option, which uses federal funding to purchase health insurance for low income Arkansans who qualify.

In his statement to The City Wire, Rice said Holland was the deciding vote on the legislation.

"In the last campaign, he put out flyers and mail pieces stating that he would help to stop Obamacare here in Arkansas.  That is not a promise kept. That is a promise broken. He voted for the implementation of Obamacare in the 2013 regular session and again in the fiscal session of 2014. In fact, he was the deciding vote in the state senate to pass it during the fiscal session. I have consistently voted against implementing Obamacare here in Arkansas.  This was the largest expansion of government in Arkansas history.  Again, that is a promise broken, not a promise kept.”

Holland challenged Rice's point, saying he was not voting to implement Obamacare.

"Terry is misleading folks. The Private Option is not Obamacare. It is federal law that governs all insurance. Everyone in the state of Arkansas that has insurance at all has Obamacare. I don't have a vote on it. That's a federal issue. ...We never voted for the Affordable Care Act in the Arkansas state legislature. That is very misleading to the people of Arkansas.”

He added that he was not the deciding vote on the Private Option in the Senate.

"I voted when my name was called. Now if voting in the middle of the pack, if 'H' is the deciding vote, then I guess I did (cast the deciding vote)," Holland said jokingly. "But it was the right thing to do, whether I was the first vote or the last vote. It was the right thing to do. That's why I voted that way.”

The 9th Senate District includes parts of Crawford, Franklin, Scott and Sebastian Counties. The statewide Republican primary will be held May 20.

It was September 2013 when the Fort Smith Board of Directors directed the city administration to begin a phase-in of more compressed natural gas-run vehicles, as well as other energy alternative vehicles, in the city's fleet.

Since that time, not much movement has taken place with the plan to add more alternative energy vehicles to the city fleet for a variety of reasons, according to Deputy City Administrator Jeff Dingman, though he said it does not mean efforts have come to a halt.

The biggest obstacle, he said, has been the cost and availability of CNG vehicles, the primary focus of the September 2013 policy directive.

"There wasn't a CNG vehicle on the state contract at the time (the city last purchased vehicles)," he said. "And there wasn't anything from the manufacturer ready to go. So realizing that the conversion cost would be 100% on the city going forward to convert a $15,000 pickup (truck), along with spending another $10,000 on the conversion costs, that's a pretty significant thing. We sort of shied away."

The lack of vehicles available for bid from the state has also been a struggle for the city of Springdale, according to Administration and Financial Services Director Wyman Morgan.

"We've looked at some vehicles on the state bid contract, but there's not that many options available at the present time."

CONVERSIONS STILL POSSIBLE
While Fort Smith may be shying from spending money on conversions or new vehicles for the time being, it does not mean the conversions are not possible or probable, according to Dingman, who said during the budget preparation last year, alternative fuel vehicles were made a priority, as requested by the Board.

"When they (Board members) were going through the budget evaluation, they did express interest that we try to include alternate fuel vehicles in the budget. So we did that. As departments proposed capital replacement of vehicles — when we had our department budget meetings — we evaluated each of those and asked, 'Would this work as a CNG or electric hybrid?'"

He said as a result, some departments are designated to possibly receive an alternate fuel vehicle as they replace fleet.

And while the Board has been supportive of the effort, it has not been without some growing pains, with Dingman mentioning that an attempt to retrofit a Fort Smith Police Department cruiser not necessarily being a good fit.

"It was used on patrol for about a year, but it had a rough time staying on the road the whole time. It goes all three shifts and it just had issues with idling and there was some mention of having trouble with it when they had to be in pursuit mode."

As a result, the police department has shifted use of the vehicle to a supervisor vehicle, which sees substantially less mileage less idling.

The city's pilot program, which extended CNG use to a select few vehicles in not only the police department but also the fire department, customer service department and transit department, started in 2012 and saw what Dingman labeled as "moderately successful" results.

TRANSIT BUS ISSUES
What dragged down the program for quite a while was the conversion of the transit department vehicle.

According to Transit Department Director Ken Savage, the "medium cutaway bus" was sent out for a conversion in March 2012, arriving back to the department in August 2012 as the city's only fully-CNG vehicle (the other vehicles in the CNG fleet still have an unleaded gas tank that can be used in place of CNG).

"It was unreliable until mid-year 2013," Savage said. "During that time, we replaced two injectors, two fuel regulators and a fuel line during that time frame. All of it was scattered throughout the year."

The cause of the problems, Savage said, were directly tied to the conversion, though he said performance improved throughout the remainder of 2013, adding that "from that point on, it's pretty much been reliable once we got (the maintenance issues) taken care of)."

In experimenting with the CNG bus, the transit department also realized that the range on the vehicle would be problematic, as the CNG bus would need additional fuel stops throughout the day.

As a result of the testing, Savage said the transit department has found the CNG vehicles to be a good alternative on the on-demand routes since time can be factored in for fuel breaks between pickups. In fact, he said the CNG bus is working so well, the transit department has ordered two newer "small cutaway" buses to use on the on-demand routes, which should eventually be retrofitted for CNG.

In all, he said fuel savings for the first quarter of 2014 were $1,495.38.

SPRINGDALE CNG HISTORY
In Springdale, Morgan said the city has experimented with hybrid technology and has found it to meet some of the city's needs.

"We have operated a couple of hybrids that had a batter backup. I know one pickup that we did use for a good while, I think it was a Chevrolet, that would run off the battery when it needed to, it would run off the gasoline motor."

And while Morgan said the city has not conducted a cost comparison of using an all-gas truck versus hybrid, the reliability of the hybrid truck has lead the city to look at other options, including all-electric vehicles.

"I know we're looking at at using some electric vehicles for ambulance response on our trail system and some police (vehicles that are electric) that we'll use on our trail system.

POSSIBLE AEDC SUPPORT
In Fort Smith, Dingman said grants have helped fund half the cost of the city's CNG fleet (a total cost of $53,950), though no grants are available at this time, further limiting what is possible as far as alternative fuel vehicles.

But he said that could change by the middle of this month after Patti Springs of the Arkansas Economic Development Commission's Energy Office sent out an e-mail notifying recipients of an "announcement regarding the vehicle conversion rebate program."

"At this time, no specifics are available regarding new vehicle purchases or retroactive conversions."

She said when more information is available, she would notify Dingman and others. It is a prospect Dingman is excited about.

"I don't know what that means, but it may mean there is more money available for conversions."