Arkansas’ March jobless rate of 6.9% ends 61 consecutive months that the rate was at or above 7%, and the drop was helped by significant year-over-year job gains in the state’s tourism industry, the retail sector and the education and health services sector.

The March rate of 6.9% was below the February rate of 7.1% and below the March 2013 rate of 7.4%, according to the report issued Friday (April 18) by the U.S. Bureau of Labor Statistics. The March figures are subject to revision.

Year-over-year, the state’s tourism sector gained an estimated 5,100 jobs, the Trade, Transportation and Utilities sector was up 3,000 jobs and the Education and Health Services sector was up 2,500 jobs.

Arkansas’ labor force was an estimated 1.33 million in March, essentially flat compared to February, and up compared to 1.327 million in March 2013. The year-over-year comparison shows an estimated 3,174 more Arkansans in the labor force.

The number of employed in Arkansas during March was 1.238 million, above February employment of 1.236 million, and up an estimated 10,227 jobs compared to the 1.228 million in March 2013.

The number of unemployed was an estimated 91,721 during March, down from the 94,110 in February, and well below the 98,774 in March 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 March was an estimated 243,500, up from 242,900 in February and ahead of the 241,500 during March 2013. Employment in the sector hit a high of 251,800 in March 2007.

Manufacturing jobs in Arkansas during March totaled 154,000, down compared to 154,300 in February and above the 153,200 in March 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 March 1995.

Government job employment during March was 215,300, down from 215,500 in February and below the 215,800 during March 2012.

The state’s Education and Health Services sector during March had 173,700 jobs, up from the 173,500 during February and up from 171,200 during March 2013. Employment in the sector is up more almost 23% compared to March 2004.

Arkansas’ tourism sector (leisure & hospitality) employed 109,500 during March, up from 109,000 during February, and above the 104,400 during March 2013. The March employment level sets a new record for the sector. The number is subject to revision in future reports.

NATIONAL DATA
The BLS report also noted that 46 states had unemployment rate decreases from a year earlier, and four states had increases. The national jobless rate during March was at 6.7%, and was down from the 7.5% in March 2013.

Rhode Island had the highest unemployment rate among the states in March at 8.7%. The next highest rate was Nevada at 8.5% and Illinois at 8.4%. North Dakota again had the lowest jobless rate at 2.6%, followed by Nebraska and South Dakota each at 3.7%.

The March jobless rate in Oklahoma was 4.9%, down compared to 5% in February and down from 5.2% in March 2013.

Missouri’s jobless rate during March was 6.7%, up from 6.4% in February and up compared to 6.6% in March 2013.

Anyone regularly traveling through Bella Vista in the morning or evening into Bentonville knows more access roads are needed to connect the town of nearly 30,000 residents to the rest of Northwest Arkansas. State and local highway officials are working on such connections.

Travelers will soon have a roundabout to maneuver as they enter Bella Vista from Walton Boulevard near the U.S. 71 Exit 93 interchange. The roundabout is slated for construction this year and is designed to funnel traffic from the southern entrance of the Bella Vista Bypass toward U.S. 71 or N. Walton Boulevard. This roundabout was the best way engineers believed they could control the traffic without installing another red light.

The Bella Vista Bypass on the Arkansas side of the state line is expected to take about 4,000 cars off of U.S. 71 that dissects Bella Vista. The first few miles through Hiwasse are slated to open April 22. This section will connect U.S. 72 North and U.S. 72 South with a total price tag of $20 million. The $13 million north extension of the bypass connecting U.S. 72 with C.R. 34 is expected to open this fall, according to Steve Lawrence, chief engineer for district 9 of the Arkansas Highway & Transportation Department. Lawrence was one of five panelist to speak at the Business Matters breakfast meeting in Bentonville on Friday (April 18).

He said there will be a full interchange at the south entrance of the bypass built once Missouri comes up with the funds to complete their part of the project. There is $30 million earmarked for that interchange to be built later. The roundabout is an interim fix to provide connectivity in the near term. Dick Trammel, moderator for the event, said Missouri plans to seek a half-cent sales tax like Arkansas in the next year to finish their side of bypass.

Benton County Judge Bob Clinard said the county plans to pave Punkin Hollow Road which will provide another access route from south Bella Vista into Bentonville, helping to take some traffic off U.S. 71. He said there are plans to connect N.E. J Street in Bentonville to U.S. 72 giving more access on the backside of Bentonville.

Clinard said county funds are tapped out after having to shell out $700,000 to repair more than $5 million in road damage from storms and floods last year. He said the county received federal disaster aid that will cover 87.5% of that damage.

“These are bridges and roads that have to be repaired and it is taking time and money away from other paving projects. We have 700 miles of unpaved roads in Benton County and only enough budget to pave 28 miles this year,” Clinard said.

Bentonville Mayor Bob McCaslin told the business leaders at Friday’s breakfast meeting that traffic is good barometer of prosperity.

“I could take you to plenty of places in Arkansas this morning and there is no traffic, but there are also no jobs, and nobody wants to live there. We are blessed with jobs and plenty of people who want to call Northwest Arkansas home. So keep that (in mind) while we continue to build out the infrastructure,” McCaslin said.

He thanked the voters in Bentonville for passing a one-cent sales tax to fund $85 million in street work back in 2007. He said Bentonville also will collect $700,000 in annual outlays from the half-cent sales tax approved across the state last year.

“A mile of highway costs between $4 million and $6 million, so you can see how much money it takes. There is no one person in Northwest Arkansas with enough money to solve the region’s traffic problems,” McCaslin said.

He said it’s been nine years in the works but the city, the state and Wal-Mart Stores Inc. plan to extend 8th Street from Walton Boulevard with five lanes all the way to Interstate 540 with an interchange located north of Exit 86 and NorthWest Arkansas Community College. The total project is expected to cost about $53 million. He said Wal-Mart is kicking in $15 million toward this project, another $32 million came from a federal earmark in 2005 gleaned from then U.S. Rep. John Boozman, R-Rogers.

“We just got the approval to go ahead with this project and begin acquiring the right-of-ways. Then utilities will be relocated and then construction can begin. This is a huge challenge, but it will improve connectivity to and from Wal-Mart’s home campus with direct access to I-540,” McCaslin said.

As the county paves alternative access routes from Bella Vista into Bentonville, McCaslin the city will add turn lanes and beef up infrastructure at several major intersections along Tiger Boulevard in north Bentonville. 

Without the turn lanes, McCaslin joked that the “city could set up a booth and sell chances for an opportunity to turn left, but that’s probably not the best option.”

Trammel said orange barrels will be familiar decorations across the region for the next few years as millions of tax dollars are poured into pavement.

“When you see those orange barrels, just smile and know things are going to get better,” he said.

Greenwood has had three mayors since January 1. Yes, three. And as of May 20, the city will elect its fourth. And a possible fifth mayor could take office Jan. 1, 2015.

While it seems improbable for the city of not even 10,000 to have had so many mayors in such a short span and the possibility of a few more in just the next eight months, the turnover at city hall has been a series of unfortunate incidents.

It all started in January when then-Mayor Del Gabbard resigned citing medical concerns.

"It is not in my nature to quit a job before it is completed," he wrote in his resignation letter. "But given my medical problems and the toll that this job has taken over the past two years I owe this decision to my family."

The city's Acting Mayor Jim Gossett appeared to be moving things along until a March accident put him in the hospital and out of commission, leaving City Clerk and Treasurer Sharla Derry to add Gossett's responsibilities to her own.

Derry, now known as the acting mayor during Gossett's incapacity, said a special election is scheduled for May 20 to fill the last of Gabbard's term, with another election to be held in November to a full-term as mayor. Candidates for the May 20 election are Doug Kinslow and Alexander Selkirk.

She said to her knowledge, this is the first time in Greenwood's history that something like this has occurred.

"From what I'm understanding, unless I'm not right on the distant past, this is the first time that the city clerk has had to perform these duties. This is the first time that this has happened — the mayor has resigned, the mayor-pro temp was injured and the mayor didn't appoint someone, which is what could have happened."

Derry said she and Gossett discussed the possibility soon after he was admitted to Mercy Hospital, where he has been since March, but he declined to appoint anyone else, instead leaving her to handle the numerous duties assigned to both offices. Her title of acting mayor will continue while Gossett is in a specialized rehab facility in Dallas, which may last until the special election May 20.

The last time there was much turnover in the mayor's office, Derry said, appeared to be in the late 1980s and into the 1990s, when several individuals served as either mayor or acting mayor.

"…(B)ased on the historical minutes of meetings," she wrote in an e-mail, "Pat Graham resigned (Aug. 11, 1989); Leon Hicks (a council member) was appointed and presided over a few meetings thereafter. Cindy Julian (a council member) became acting mayor on (Nov. 13, 1989) and served until (April 27, 1992). Joe Seigmund took over as acting mayor on (April 30, 1992) and served until (June 5, 1995). Leon Hicks again became mayor and presided over the (June 19, 1995) meeting and served until (Dec. 31, 1998) when he lost the election to Judy Selkirk, whose term began (Jan. 1, 1999)."

She said the last several mayors following Selkirk served full terms until the most recent period started in January. Those mayors included Selkirk from 1999 to 2002, Garry Campbell from 2003 to 2006, Kenneth Edwards, Jr., from 2007 to 2010, followed by now-former Mayor Del Gabbard, who served from 2011 until his Jan. 13 resignation.

But even with the high level of turnover in recent months and the turnover that occurred more than a decade and a half ago, former Greenwood Chamber of Commerce President Randy Davis said the uncertainty of who occupies the mayor's office has not impacted the city's ability to recruit business.

"The mayor, to me, is a figurehead. He can't do anything without the wishes of the council. I think that's what our last mayor ... I honestly think that is what happened with him. He thought he would do what he wanted and then the council reminded him of what they wanted."

He said the period the city is in will pass, just like the period of the 1990s and he said the likelihood of any long-term impacts from the unexpected and unplanned turnover would be minimal.

"We'll have an election in May (for someone) to be mayor until November. And then we'll elect someone to a full term then. I don't see it being a long enough term to have any (major impacts). …But they can't do anything without the council. So it's no big deal. The upcoming election is ore important than what we're going through right now."

Derry said her 16 years in city government has given her the ability to fill in for the mayor during this period, even while maintaining her other positions as prescribed by state law. And if there were concern among anyone in the community, she hasn't been hearing about it.

"I've not received any worry myself. Maybe they're afraid to say. But I've been here for 16 years. I have quite a bit of experience under my belt. The mayor's office is such that you're presented with different circumstances, no matter who you are. But you handle it within the course of business and do the best you can."

The special election for Greenwood mayor is May 20. The regular general election will be held Nov. 4, which will include the position of mayor, as well as Derry's position of city clerk-treasurer, of which she plans to seek re-election.

Fort Smith and Van Buren hospitality tax collections for the first two months of 2014 are off to a good start compared to the year-over-year declines both cities posted in 2013.

February hospitality tax collections in Van Buren were $32,342, up 1.3% compared to February 2013. The February increase follows a 3.6% gain in January. For the first two months of 2014 the Van Buren Advertising and Promotion Commission has collected $65,751, up 3% compared to the same period in 2013.

The city collects a 1% tax on lodging and a 1% prepared food tax.

Collections in Van Buren during 2013 totaled $423,221.83, remarkably close to the $423,222.91 during 2012. During 2012, Van Buren hospitality tax collections totaled $425,554, up 5.2% compared to the 2011 collections. Hospitality tax collections in Van Buren during 2011 totaled $429,561, up 2.34% compared to 2010. The 2011 collections ended a two-year skid in Van Buren.

“Despite bad weather during February, tax receipts still saw a slight improvement over 2013. Lodging receipts are still well ahead of 2013 through the first two months of this year,” said Maryl Koeth, executive director of the Van Buren Advertising and Promotion Commission.

Koeth said the restaurant sector in Van Buren continues to struggle, and may do so until more travelers roll through the area.

“Restaurants receipts continue to lag behind last year by about 1.5%. I anticipate this to be the trend for the next 2 or 3 months until the traditional vacation travel season begins in June. I think we will see a slight improvement for March as more people stayed closer to home for Spring Break this year,” Koeth said.

FORT SMITH
February hospitality tax collections in Fort Smith totaled $54,315, down 2% compared to February 2013. The February dip follows a 13% gain in January.

However, for the first two months of the year the Fort Smith Convention & Visitors Bureau has collected $110,314, up 4.9% compared to the same period of 2013. The city collects a 3% tax on lodging.

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

During 2012, Fort Smith hospitality tax collections totaled $746,182, up 5.37% compared to the 2011 period. The 2011 collections were up 4.3% compared to 2010.

ARKANSAS COLLECTIONS
January revenue from Arkansas’ 2% tourism tax was $787,043, ahead of the $751,792 in January 2013. The state did not have February numbers as of April 21.

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

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

The biggest investment most families make is their home, but the past few years it’s been painful to look at neighboring home sales prices, especially for homeowners who purchased in the past decade. And that’s true even in the strong economy of Northwest Arkansas.

RealtyTrac estimates that 9.1 million U.S. homeowners are still underwater, which means they owe substantially more than their home is worth. Their loan-to-value ratio is 125%, according to Irvine, Calif.-based real estate tracking firm. Underwater properties are down from 9.9 million a year ago

The first quarter negative equity numbers were down to the lowest level since RealtyTrac began reporting negative equity in the first quarter of 2012. 

“U.S. homeowners are continuing to recover equity lost during the Great Recession, but the pace of that recovering equity slowed in the first quarter, corresponding to slowing home price appreciation,” Daren Blomquist, vice president at RealtyTrac, said in the statement. “Slower price appreciation means the 9 million homeowners seriously underwater could still have a long road back to positive equity.

Tom Reed, owner of Reed & Associate real estate appraisal firm in Fayetteville, said Northwest Arkansas’ residential market has been on the upswing since early 2012. The upward trend came after a deep 35% average price decline between the market peak at the end of 2005 and the bottom of the trough reached in mid-2010, Reed said.

RealtyTrac reports 8,445 homeowners in Benton County – one in five of all homeowners – are upside down on their mortgages, with the value of the property 25% less than what is owed against it.

One in four Benton County homeowners is recovering equity lost during the bust. Another 14% have positive equity with loan-to-value ratios at 50% or lower. That means that their homes appraise at twice what is owed.

In Washington County, 19% of homeowners are underwater on their loans. This is nearly dead even with numbers in neighboring Benton County and a little higher than the 14% reported at the state level. One in four Washington County homeowners are seeing their equity recover and 11% are in strong equity positions with their homes valued at twice what is owed.

Reed said local home prices have been recovering since early 2012. He attributed that upward price movement to the lower overall inventory of unsold homes. He said there is a lot of new home building underway and subdivision expansion in areas where lots have become scarce and there is ample demand for new homes.

“These land prices in new subdivision phases come at a higher cost to the builder today and that is driving up the cost for new construction. In the past few years the new home market was in direct competition with the existing home market because there were so many discounted lots on the market. Those lots in the most desirable areas have been absorbed,” Reed said.

He said the higher new home prices are also lifting existing home values and he expects that to continue this year and next. The only caveats being that the local economy continues to keep the pace it’s on and new building does not outpace demand.

“I see the local property values continuing to rise at a normal range whether that’s 3% or 5%, I don’t know, but it’s not the unsustainable double digit increases that occurred ahead of the market peak,” Reed said.

The Fort Smith Board of Directors will vote on a set of resolutions related to more than $6 million in bids for the Ben Geren Aquatics Center prior to Tuesday's (April 22) study session.

The action, to be taken as part of a special session of the Board, will approve 29 contracts totaling $6.267 million, according to a memo to the Board from Deputy City Administrator Jeff Dingman.

"You will notice that structural steel and steel erection did not receive bids, and Flintco (the project's construction manager) will carry an allowance for getting that particular work accomplished, as noted," Dingman wrote.

The resolution awarding the 29 contracts "also includes award of a Utilities Department project for extension of water & sewer mains to the aquatic center site in the amount of $142,915 to Forsgren, Inc. of Fort Smith," he added.

Another resolution to be voted on by the Board would amend the fee schedule for Tulsa, Okla.-based Flintco to $466,530 based on construction costs of $9.348 million. Original construction manager fees for the company had been set at $371,250 based on a $7.5 million construction cost.

"The resolution goes on to establish the Construction Manager's Guaranteed Maximum Price of $9,763,852 for all construction phases of the project," Dingman said, adding that including fees to be paid to Larkin Auatics and money to pay for furniture, fixtures and a point of sale system bring the total cost of the project to $10.897 million. Between the city and Sebastian County, both governments had committed a combined $10.9 million for the project.

"Both resolutions need to be adopted and approved in order to keep our project moving," he said. "We are still on schedule for opening Memorial Day Weekend, 2015."

Following the opening of the bids, County Judge David Hudson told The City Wire that the Quorum Court was not required by law to approve the bids.

Small formats, unique items and home delivery aren’t just popular with retail, they are also drawing the attention of restaurant giant YUM Brands who is seeking to breathe life into its Pizza Hut and KFC segments.

Louisville, Ky.,-based YUM Brands is a major food service customer of Tyson Foods Inc. and also does retail business with Wal-Mart Stores Inc.

David Novak, chairman and CEO of YUM Brands, said during a March 13 presentation at RBC Capital Markets Conference in Boston, that Yum is taking a page from the Taco Bell playbook to spur innovation into its sluggish casual dining formats. He said Taco Bell has enjoyed success with millennial consumers that the other YUM segments have not had. He admitted that Domino’s Pizza has outperformed Pizza Hut, something he hopes to reverse with the use of social media and smaller, more flexible formats.

Novak said the company plans to take knowledge gleaned from its social media insights at Taco Bell and infuse that learning into KFC and Pizza Hut to help drive sluggish sales.

Earlier this year, the company began testing the concept of Pizza Hut by-the-slice in two locations. And last August, the company opened KFC Eleven, an upmarket version of its fast-food chicken chain, with a menu of updated side dishes, salads, rice bowls, flatbread sandwiches and only boneless pieces of Original Recipe chicken.

“I think that the small-box format and fast-casual really has shown us that we can actually take our quality up, our pricing up and give people more even within our own formats,” Novak said. “But I think we are really going to unlock a lot of growth just by looking at the Subways and the Chipotles and the fast-casuals, the Five Guys. These kinds of concepts I think are showing us there's different ways to make money, and you can do it very profitably.”

FAST CASUAL WINNERS
According to Technomic's Top 150 Fast Casual Restaurant Report, fast casual makes up just 14% of the total $223 billion limited-service restaurant segment. However, its sales continue to outpace other operators.

Fast-casual sales increased 13% in 2012, and the largest chains — those posting more than $325 million in sales  — did even better, growing by 16%. Technomic notes that fast-casual restaurants continue to outperform quick-service and full-service establishments by posting strong gains while the rest of the industry is having a more difficult time.

"Fast casual has become a $31 billion segment since Chipotle began reinventing fast food 20 years ago," Darren Tristano, executive vice president of Technomic, said in a statement. "Consumers today want quality offerings made quickly. Segments like burger, sandwich and Mexican have done a great job delivering on quality, fresh, gourmet, and made-on-demand offerings. There are still areas of growth in the fast-casual segment for operators to adopt these ingredients for success and become viable in the fast-casual landscape."

The trend is expected to continue. While the compound annual growth rate for all limited-service restaurants is 4.5% (2012 through 2017), fast-casual operators are expected to grow 10%, on average, over the same period. The categories that saw the fastest sales growth were sandwich (up 17%) and Asian/noodle (up 16%), according to the Technomic data. 

Top players within fast-casual clusters include:
• Bakery café led by Panera Bread with sales of $3.7 billion.
• Mexican led by Chipotle Mexican Grill with sales of $2.7 billion.
• Chicken led by Zaxby's with sales of $979 million.
• Asian/Noodle led by Panda Express with sales of $1.8 billion.
• Better Burger led by Five Guys Burgers and Fries with sales of $1.1 billion.
• Sandwich led by Jimmy John's Gourmet Sandwich Shop with sales of $1.3 billion.
• Pizza led by Donatos Pizza with estimated sales of $157 million.

DESTINATION PRODUCTS
Last month YUM launched its Taco Bell breakfast platform taking on McDonald’s with its waffle taco loved by real-life Ronald McDonalds featured in television ads for the fast-food breakfast taco.

Novak said Taco Bell has worked on refining its breakfast menu for five years. He said the waffle taco and the resurrection of the KFC Double Down, bun-less chicken sandwich, are destination products.

“We have products that we think are destination driven at what we think is very, very good value,” Novak said.

Analysts are lukewarm on the wacky menu items saying they could drive consumer interest and traffic in the short-term, but noted that consumer trends point to fresh, healthier and “made to order” items faring better over the long-term.

J.P. Morgan downgraded YUM Brands on Monday (April 21) one day ahead of its earnings announcement noting the stock is overvalued at its current price of $75.98, with significant exposure in China and sluggish U.S. sales.

CHICKEN DELIVERY
“In the U.S. ... we will be delivering our award-winning wings with plans to ultimately be the first home meal delivery service chain to offer up complete chicken meals that you can order to go along with your pizza,” Novak said. “We now have fryers in all of our Pizza Huts in the U.S., and this will be a major sales layer that we will launch.”

Since restructuring the organization at the beginning of the year, Novak said YUM’s new brand-focused approach has helped revitalize the global operations. He said each day KFC wakes up asking how they can attack McDonald’s market share and Pizza Hut does the same with Dominos.

The waffle taco by Taco Bell was a direct hit to McDonald’s lucrative breakfast market which is 25% of the company’s total U.S. sales.

One of the few races garnering attention in the run up to the May 20 primary is the race for House District 96. The race pits Republicans Grant Hodges and Damon Wallace against each other in the largely rural Benton County District.

Rep. Duncan Baird, R-Lowell, is term limited for the District seat.

Hodges and Wallace said the state's income tax is a large concern, with Hodges falling in line with gubernatorial candidate Asa Hutchinson's proposal to cut the income tax over time.

"I fall more in line probably with Asa Hutchinson's plan, which would be a gradual phase out of the income tax over time," Hodges said. " think that's the most responsible way to cut taxes. It's still funding the services we need but moving toward a more pro-growth tax code."

Wallace said he had not researched Hutchinson or other gubernatorial candidates' tax cut plans, but said he is "for getting rid of any taxes we can."

"But I also realize that Arkansans have a certain expectation of, 'We want to fund our schools. We want to fund parks and some of the amenities that just go with living here in our state.' The lakes, and the mountains and the things like that. If we're going to get rid of the income tax, we of course need to find a way to make up for that lost income."

He said that some may argue that lower taxes could result in increased economic activity and therefore more revenue for the state. Wallace said regardless of what action is taken, something must be done to reduce the state's income tax, which he said is higher than many surrounding states, including Texas and Louisiana.

Wallace also said he would like to see more work done to attract business to the state, though he said it would take more than just cutting taxes. It would also involve finding other things to sweeten the deal for companies who may be looking to establish or re-locate from another state, such as incentives and tax credits.

"I think it's a combination. It depends on what the businesses need. But we also have to be out there asking for those businesses. There was a situation out in Colorado last year where they passed some legislation that was hurtful for some of the gun magazine makers. MagPool was one of them I believe. My understanding…I never read anywhere, and of course I'm not on the inside, but I didn't read anywhere where we had sent any representatives to MagPool and said, 'Hey, we want you here in Arkansas.' I think we need to be proactive on that. It's not just the big companies, but even the smaller and mid-sized companies. If we go after them and say, 'We want you here. Tell us what you need,' then we can structure some kind of plan in order to help facilitate their relocation here to Arkansas."

An area on which both men agreed is tackling the healthcare issue in Arkansas, with Hodges saying he was for a repeal of the Private Option.

"The main reason being that we can't afford it and there's no plan to pay for it on the state level. Essentially, if there's no plan to pay for it, we're going to raise taxes, which no one wants to do, or we'll have to cut spending from somewhere else. It may come from education, prisons or Medicaid. Higher education could be on the chopping block, as well. So that's my main reason for opposing it, is the cost."

Wallace did not fully come out for a repeal of the Private Option, but instead said each mandate dealing with the federal healthcare laws need to be looked at in depth to determine whether the state should fund certain federal mandates. He said his background as a respiratory therapist would give him insight that others may not have.

"Having someone in there that understands what the relevant studies are behind certain regulations or mandates will help us decide whether we fund those mandates or not."

The race for the District 96 House seat has not been without some controversy, as The Arkansas Project has run stories on Wallace's $30,000 debt to the Internal Revenue Service, as well as a question over the legitimacy of his bachelor's degree from LaSalle Extension University in Louisiana, which was raided by the FBI as a degree mill and eventually shut down.

Hodges said it was time for Wallace to "tell the truth."

"What is the truth about his college degree? Is it fake? Has he been honest about it? I haven't heard him respond to some of the other issues, as well. I think it's time for him to comment on it. I think he owes the people of this district the truth."

Wallace addressed the topics, first explaining that his degree was completed via correspondence, claiming that it took two years of coursework to complete the degree in business administration. It wasn't until later that he said he found out that the school was not necessarily on the up and up. "As far as whether the degree is from a reputable school or not, no. But I put forth the effort and stuff and as far as I can tell, I did the due diligence that I could at the time to make sure that they were a valid entity. But things just didn't work out for them."

Regarding the IRS debt, Wallace said he was in the process of repaying the debt that he incurred from the purchase of an auto repair store, where he ended up racking up the IRS debts and penalties due to his never having run his own business with a staff before.

"A lot of these (employer-paid) taxes caught me off guard and basically after we bought the shop, it was at the beginning of the recession and I wasn't charging high enough prices for what I was paying the people. And basically it just snowballed. And of course, with the IRS if you get penalties and interest, it can get out of hand pretty quick. It has been as high as $60,000 or more. I can't remember the exact figure. But again penalties and interest. But I've got it down to about $30,000 and on a regular payment thing."

Statewide Republican and Democratic primaries, as well as judicial races, will be held May 20. The winner of the District 96 GOP primary will face Democratic candidate Tom McClure and Libertarian candidate Michael Kalagias in the November general election.

Faculty, staff, students and members of the community figuratively broke ground Monday (April 21) on the University of Arkansas at Fort Smith's new $15.5 million visual arts building in a ceremony that was moved indoors due to rainy weather.

The new 58,000-square-foot facility, to be built at the intersection of Kincaid Avenue and Waldron Road, is the first building to be constructed as part of the university's new master plan and will bring all art department programs under one roof.

"This afternoon, we take the first step in the university's master plan to reshape the face of the campus during the next 20 years," said James Cox, chairman of the UAFS Board of Visitors.

Dr. Henry Rinne, dean of the College of Humanities and Social Sciences, told a packed room of university supporters that just as the Ballman-Spear Building — an arts building — was the first building constructed when the university moved to its present location during the 1950s when it was still Fort Smith Junior College, the construction of this latest arts building was an important step in moving the university forward.

Rebecca Carolan, a senior art major from Alma, spoke of how the construction of the new building and the re-location of all the arts programs from five buildings into one would change the university in an immediate way.

"The initial impact of this building will be immediate," she said. "Studios where our elbows don't rub, a gallery space where we can learn how best to bring our (work) to the public and space where all students have the opportunity to transform their big ideas into even bigger objects."

UAFS Chancellor Dr. Paul Beran said the new building would further the university's mission upon its opening in just over one year.

"Construction of this building further's the university's mission while enhancing access to the arts as we prepare our students to succeed, as our mission statement says, 'In an ever changing global world.' And continuing with what our mission statement says, 'The ability to advance economic development and advance equality of place.' This kind of structure, this kind of building, this kind of investment in the community does all those things. It helps us to succeed at each point of our mission."

Beran said the new building would impact how students at the university see the world, adding that the artist pieces brought to life both in the university's older facilities and the new facility "changes us."

Funding for the facility was provided by a $15.5 million gift by the Windgate Charitable Foundation. In literature provided to guests at the groundbreaking ceremony, the university noted that it was seeking additional donations through naming rights associated with various sections of the building.

"Windgate Charitable Foundation has challenged UAFS to raise $2.5 million in private support to help establish an endowment for the facility," the literature read. "The naming opportunities presented offer ways to partner with the university to provide valued resources for students and the community at large."

Among the naming opportunities are a $500,000 sponsorship of the facility's cinema room, as well as a $500,000 donation of the building's primary gallery. Opportunities for naming rights range from as low as $5,000 to five different half-million dollar opportunities.

"I know with the tremendous community support of the past that we will meet this goal," said Bill Hanna, a member of the UAFS Foundation Board. "I know that the UAFS Foundation will continue its good stewardship of money that this community gives to change lives through education at this premier institution."

And while rain may have caused the groundbreaking to move indoors and become merely figurative, Beran said it was reflective of the type of building that would soon rise at the corner of Kincaid and Waldron.

"In light of the fact that this is a 21st century building, I find it somewhat appropriate that we are doing it metaphorically and without the need to actually turn dirt ... that we are, in fact, turning dirt in our own minds and that the technological opportunity that we have with this building is reflected in that ability to do this from a distance."

First quarter 2014 commercial airline enplanements are up 5.36% and 9.1%, respectively, in Northwest Arkansas and Fort Smith, but down more than 6% in Little Rock.

Travelers flying out of XNA during March totaled 51,325, up 4.09% compared to the 49,309 during March 2013. For the first quarter of 2014, enplanements at XNA total 133,785, up 5.36% compared to the same period in 2013. The early 2014 traffic is up 1.77% compared to the same period in 2007 – the year that XNA reached its record enplanement of 598,886. (See XNA enplanement history at the end of this report.)

While they welcome the gain, officials at XNA aren’t sure why traffic began to push more positive in the first quarter.

“We even went back in (February) to look at last January weather thinking it could be  the reason for the jump. It was not,” said Kelly Johnson, director of the Northwest Arkansas Regional Airport. “I think the economy is picking up thus more travel. We hope the trend continues. I have talked with other airport operators and they too are seeing increased traffic at different places around the country.”

Johnson also said the effort continues to recruit more carriers to the airport, but industry conditions are not helping.

“The U.S. has seen 200 airlines come and go and we are now down to four major carriers and just a handful of start-up discount carriers (discount airlines). There are hundreds of airports nationwide doing the same things we are in attempts to get service into their individual markets. We are taking an all-inclusive approach to lure new service into XNA,” Johnson said.

For all of 2013, XNA enplanements totaled 579,679, up 2.58% compared to the same period in 2012. The enplanement growth remained stable through the year, with enplanements up 2.42% at the end of the first quarter of 2013.

Enplanements at XNA totaled 565,045 during 2012, up just 0.4% compared to 2011. Although slight, the gain prevented XNA from posting two-consecutive years of enplanement declines. XNA’s first full year of traffic was 1999, and the airport posted eight consecutive years of enplanement gains before seeing a decline in 2008.

American Airlines remains the dominant carrier at XNA with around 43% of all enplanements during 2013. Delta is second with around 27% of enplanements followed by United Airline at around 15%. The airport has more than 10 service connections with five carriers.

FORT SMITH TRAFFIC
The Fort Smith Regional Airport, served by flights from Atlanta and Dallas-Fort Worth, posted March enplanements of 7,658, up 9.11% compared to March 2013.

Enplanements for the first quarter of 2014 total 20,692, up 9.14% compared to the same period in 2013.

For all of 2013, enplanements at the airport totaled 84,520, down 2.46% compared to the same period in 2012. The decline ended three consecutive years of enplanement gains at the airport. (See Fort Smith enplanement history at the end of this report.)

With 12,171 enplanements for the first quarter of 2014, American Airlines accounts for 58.8% of commercial traffic out of Fort Smith. Delta Air Lines had the remaining market share for the first quarter of 2014.

Enplanements at the Fort Smith Regional Airport totaled 86,653 during 2012, just ahead of the 86,234 in 2011, and marked three consecutive years of enplanement gains.

Total system traffic for American Airlines was 1% for the first quarter of 2014 compared to the same quarter in 2013. Regional enplanements were up 0.4%, while the regular, or “mainline,” traffic was up 1.2% in the quarter.

Delta total system traffic was up 3.5% for the first quarter, and it’s domestic (U.S.) traffic was up 3.8%. However, regional traffic for domestic flights was down 1.4% during the quarter.

LITTLE ROCK NUMBERS
Enplanements at the Bill & Hillary Clinton Airport (Little Rock National Airport) were 88,282 in March, down 6.24% compared to March 2013. Enplanements for the first quarter of 2014 were 231,380, down 6.51% compared to the same period of 2013.

Enplanements in 2013 totaled 1.085 million, down 5.45% compared to 2012. Enplanements in 2012 totaled 1.147 million, up 4.07% compared to 2011. The 2012 numbers ended five consecutive years of enplanement declines at Arkansas’ largest commercial field.

With 68,708 enplanements during the first quarter, Southwest posted the most enplanements of the eight carriers operating out of Little Rock. However, the enplanement count for Southwest was down 17.14% in the first quarter compared to the same quarter in 2013.

System traffic for Southwest Airlines during the first quarter was down 0.2% compared to the first quarter of 2013. The discount carrier also reported that the number of flights during the quarter was down 5.9%.

ENPLANEMENT HISTORY (Fort Smith Regional Airport, since 2000)
2013: 84,520
2012: 86,653
2011: 86,234
2010: 86,129
2009: 78,432
2008: 87,030
2007: 99,127
2006: 94,717
2005: 102,607
2004: 92,928
2003: 90,493
2002: 87,944
2001: 95,419
2000: 104,182

ENPLANEMENT HISTORY (Northwest Arkansas Regional Airport, since 2000)
2013: 581,487
2012: 565,045
2011: 562,747
2010: 570,625
2009: 540,918
2008: 571,845
2007: 598,886
2006: 586,320
2005: 583,940
2004: 511,714
2003: 448,228
2002: 400,063
2001: 374,122
2000: 367,157

Crawford County Judge John Hall and Sheriff Ron Brown took their sales pitch for a new county jail across downtown Van Buren to the city's council meeting Monday night (April 21) before the two men addressed residents concerned about a gun range at the Crawford County Quorum Court meeting shortly after they left the council.

In making the pitch for the new jail to Van Buren city councilors, Hall said the vote to raise sales tax by a total of three-quarters of a cent on May 20 was about "the future of law and order in Crawford County."

"The fact that the court systems, law enforcement, the general public depends upon our ability to incarcerate people who (do) bad things and we have to have a place we can put them in that is certified by the state of Arkansas and (where) we can house those people and keep them away from the rest of the population."

The proposed facility is to be built on land just outside of the Van Buren city limits, along U.S. Highway 64, which Hall has said sits in a convenient location easily accessible by law enforcement across the county. The facility requires county voters to approve the sales tax, which would bump the overall sales tax to 10.25% in Van Buren, among the highest local sales tax rates in the United States.

Where the facility along Main Street in Van Buren was built to house 64 inmates, the new facility is designed to house a minimum of 265 inmates and a maximum of up to 307. The new facility will also house a re-located sheriff's office, a courtroom, 911 call center and other amenities, according to Hall, who said the facility would be built for an estimated $19 million with contingency funds of $2 million available should the project run into unforeseen obstacles.

Brown told the council that problems with the jail dated as far back as 1993, adding that the facility was overcrowded from nearly the time it opened. As time has gone on, the problems have only worsened, with the county now transporting inmates to jails in other counties or releasing inmates on signature bonds if they are deemed non-violent offenders.

Alderman Johnny Ragsdale, who was on the Quorum Court when the current facility was constructed, said the facility was built without raising either millage or sales taxes. But Brown said those days are over.

"You know, we're a growing community and when your population grows, everything else grows," Brown said. "This is no different, in my opinion, than a school or a municipal building or a train depot. When your public grows, everything has to grow with it."

To drive home the point of just how overcrowded the jail is, Brown relayed that he has been placed on probation by the state of Arkansas three different times due to jail overcrowding, with a state panel voting three times to shut down the jail. Each time he has been able to buy more time, but he said it could come to a point if the new sales tax does not pass that he could be facing lawsuits, or worse.

"I'm on probation again until August of this year. The letter (from the state) says they're going to ask me to shut it down. If not, they'll file a complaint with the attorney general and it's basically suing Crawford County. Can it happen? Go ask (former) Sheriff (Mike) Allen. Sheriff Allen was brought before Judge Medlock and Judge Medlock said if you go over 64 beds, I'm going to put you in jail."

Beyond what the judge and sheriff said are immediate needs, Hall also pointed to what he said would be economic benefits to a $20 million building project in the county, claiming it would create up to 200 jobs leading to most money flowing through the local economy.

Elected city officials who spoke offered support of the jail tax proposal, with City Attorney Candice Settle calling the situation with the county's jail population "a crisis in our community."

"It will only worsen and I hope people consider that and realize how serious it is," she said.

Mayor Bob Freeman went further, saying that it was a situation that "won't fix itself."

"We have to address the issue. …Let's bite the bullet and let's move on. I applaud the judge and the sheriff for putting together a plan."

The city council approved a motion introduced by Alderman Donna Parker officially supporting passage of the three-quarter cent sales tax on May 20.

In other business, the council:
• Passed a resolution authorizing the mayor to enter into a contract for $82,200 with CEI Engineering Associates to create a comprehensive parks and recreation plan for the city;
• Passed a resolution authorizing and directing the mayor to advertise for bids for property insurance;
• Passed a resolution that provides $50,000 in funding for the Regional Intermodal Transportation Authority for regional economic development; and
• Passed a resolution accepting a bid from Crawford Construction Company for $3.127 million to construct the new Van Buren Senior Center.

At the Quorum Court meeting, Hall was met by a group of residents who claim that a local gun range is putting their families at risk due to wayward bullets landing on their properties and in some cases, entering their homes.

Resident Brenda Yeakley lives near the THOR Global Defense Group shooting range in rural Crawford County and was seeking an order from the Quorum Court that would regulate the business after she said her niece was shot, though Brown said the state crime lab could not rule that the bullet definitely came from a gun being fired on the range at the time.

Addressing the request Yeakley, Charles Baker, the county's legal counsel, said any ordinance that the county could pass that would regulate such establishments or ban them outright would have to grandfather in THOR since it is an existing business.

"The legislature has done exactly what Justice Demonte said earlier — they've made the law in the state of Arkansas (to where) if you attempt to regulate a gun range, then any ranges already in existence when you pass that regulation are grandfathered in. So there's nothing that this Quorum Court could do with this law currently in affect that would change anything at that particular gun range."

Justice of the Peace Carrie Jernigan, whose law partner represents THOR, said it was a slippery slope should the Quorum Court ever try to regulate a business and instead suggested civil action would be the appropriate remedy should residents making claims against THOR want action taken against the company. It was a suggestion that Baker and Hall agreed with and suggested to the residents.

Many of the residents in attendance voiced their discontent with the inaction of the Quorum Court, with about 45 minutes of discussion taking place on the one topic. Hall instructed Baker to further research the remedies that could be available to the Quorum Court before its next meeting in May.

In other business, the Quorum Court approved an appropriation amendment to the fiscal year 2014 budget.

U.S. Sen. John Boozman, R-Ark., is in an Arkansas hospital and was undergoing heart surgery Tuesday morning (April 22), according to a statement from his Washington office.

Boozman, who has served as Arkansas' junior senator since 2011, was scheduled to speak at the ribbon cutting for the Bella Vista Bypass Tuesday but did not appear at the ceremony.

UPDATED INFO:
The following update was sent from Boozman’s Senate office at about 2:30 p.m.:
U.S. Senator John Boozman (R-AR) is in recovery following heart surgery in Rogers, Arkansas.
 
Boozman, 63, was taken to the hospital overnight after suffering from pain in his chest and arm. After running several tests doctors admitted Boozman and performed heart surgery today.
 
Doctors say he responded well to the surgery and are monitoring his recovery. Boozman’s family has visited with him and are hopeful for a full recovery. The family is appreciative of the thoughts and prayers from well-wishers.
 
Please direct any questions to his official office and respect the family’s privacy at this time. Additional updates will be provided by his Senate office once more information is available.

Boozman, 63, was elected to the Senate in 2011 after serving in the House of Representatives since 2001.

Before running for Congress, Boozman served on the Rogers School Board and was a partner in BoozmanHof Eye Clinic in Rogers.

U.S. Sen. Mark Pryor, D-Ark., released a statement following the news of Boozman's hospitalization sending well wishes to Arkansas' junior senator.

"I’m fortunate to call Senator Boozman a good friend and trusted colleague. Today, I lift up his wife, Cathy, his three daughters, and their family and friends in prayer. On behalf of all Arkansans, I’d like to wish Senator Boozman a speedy recovery."

U.S. Rep. Steve Womack, R-Rogers, issued this statement: “My thoughts are with Senator Boozman, his wife, Cathy, and their family. I am grateful John is receiving care from some of Arkansas’s finest doctors and pray that he will make a quick, full recovery so that he can get back to doing what he loves and does so well – serving the people of Arkansas.”

A lifelong Arkansan, Boozman attended the University of Arkansas in Fayetteville, where he was a member of the Razorback football team. Boozman's high school years were spent as a Grizzly, having graduated from Northside High School in Fort Smith.

This story will be updated as more information becomes available.

Americans are looking at more than dollar savings when it comes to feeding their families. A recent food trends report by Cone Communications indicates families are reaching for healthier, more sustainable foods which is forcing changes within the grocery industry.

Although family satisfaction reigns supreme in the study findings, 93% of shoppers surveyed consider health and nutrition important, and 77% said sustainability is key in their decision to purchase. A majority of consumers named specific sustainability initiatives that influence their buying decisions:
• 74% locally produced
• 69% sustainable packaging
• 69% animal welfare
• 67% non-GMO
• 65% protects and renews natural resources

Nearly nine out of 10 survey respondents consider where a product is made when making food purchasing decisions, and two-thirds said they would pay more for food that is produced close to home.

Local food sourcing is linked to environmental and economic benefits which are the two biggest reasons cited by the survey respondents. Americans' convictions are so strong in their commitment to purchase locally produced foods that nearly half (46%) would sacrifice variety to do so, the findings show.

"As the local food movement goes mainstream, it's not just about the 'mom and pop shop' or farm stand. Even large companies have a role to talk about where they source food and the respective impacts on local communities," Alison DaSilva, executive vice president of Cone Communications, said in a statement with the report. "Using local as a broader value proposition helps companies of all sizes talk about the social and environmental benefits of responsible sourcing."

Wal-Mart Stores Inc. has been at the center of the sustainability sourcing movement for a decade now and it continues to tweak its operations and requirements of is suppliers to provide more fresh and more localized products without higher costs to consumers.

‘FOOD UPSTREAMING’
One way Wal-Mart hopes to provide fresher food and beverages is with a program Duncan Mac Naughton recently referred to as “Food Upstreaming.” Mac Naughton, chief merchandising officer with Walmart U.S., shared during a March 19 speech at the IRI Retail Conference that his merchandising team is now focused on food upstreaming work and making some great progress.

“This is really about how we can decrease product cost while we increase product quality. It is that simple, simple in concept, but it takes some work to do. We now have three wine warehouses across the United States in California, in Florida and in Arizona. We are able to take cost out of the distribution center and then reflect that cost back to the customer, MacNaughton said.

Continuing, he explained: “In produce which I am very excited about, we are able to use regional facilities to start to centralize some of the produce supply chain activities, things like culling and things like quality assurance ripening, cutting, packaging and even sorting across an entire crop to say which stores should get which products. We opened our first facility in South Texas in the third quarter of last year and we plan to open five more of these facilities in the coming years.”

Wal-Mart has followed Kroger, Safeway and Texas-based H-E-B in the push to win share in the competitive “fresh war” throughout the grocery industry.

FRESH GUARANTEE
It’s been nearly a year since Wal-Mart unveiled its “fresh guarantee” to consumers promising money back for produce that doesn’t meet expectations.

"We're listening to our customers and delivering on our promise to offer great produce at the most affordable price," said Jack Sinclair, executive vice president of the food business for Walmart U.S. "We are so sure our customers will be pleased with the fruits and vegetables they buy in our stores, they can receive a full refund if they aren't completely happy."

Grocery accounts for 55% of the net sales revenue at Walmart U.S., which amounted to $151 billion last year. 

Retail experts like Carol Spiekerman, CEO of NewMarketBuilders, have said that fresh is everywhere because it is often a reason people will travel to a particular grocery store. She adds that playing the fresh game raises the bar for grocers because consumers expecting fresh are unforgiving when they don’t find it as advertised.

Sinclair said consistency would be key to the fresh program’s success, which is why it mandated training for 70,000 of its employees who are responsible for stocking and restocking fresh produce in stores across the country. To improve freshness, Wal-Mart hired produce experts to work directly with farmers in the key growing regions where they have produce-buying offices. They also employ third-party produce auditors at the store level.

Wal-Mart said it has been focused on local farm sourcing since 2010 and ongoing efforts to streamline the supply chain have reduced the number of days produce is in transit to ensue the freshest fruits and vegetables get to the customers.

In the recent quarter, Wal-Mart reported its overall food and consumable grocery marketshare grew by 0.24% despite negative comparable sales attributable in part to SNAP (federal food stamp) benefit reductions. That said, Wal-Mart had mid-single digit positive comp sales in produce, with positive results in other fresh departments including meat, deli and bakery.

Sinclair told analysts in the October meeting in Bentonville that Wal-Mart’s efforts were starting to pay dividends toward Wal-Mart’s goal of $25 billion in “fresh” sales annually. He said the plan involves using a 33% share in consumables as the benchmark. 

To date, Wal-Mart has a 21% share in bananas, which Sinclair said was linked to better sourcing. With just a 9% share in strawberries, he said, Wal-Mart knows there’s work to do.

CONSUMER EDUCATION
"Grocery shopping decisions no longer hinge on price and taste alone. Consumers worry about where their food is made, what's in it and how it affects the environment," DaSilva said. "The stakes are higher for companies to not only provide food options that meet consumers' modern needs but communicate attributes in a clear and transparent way."

Consumers look to companies to help them understand the broader implications of their food purchasing decisions, with nearly three-quarters (74%) stating they want companies to do a better job explaining how their purchases impact the environment, according to the Cone report.

"Although consumers are shopping with an eye toward sustainability, they are equally motivated by personal needs and a desire to improve society," said Liz Gorman, senior vice president at Cone Communications. "Messaging must be two-fold. Companies must clearly demonstrate the impact consumers' purchases are having on the environment, while reinforcing health, taste and quality attributes."

One area of growing concern among consumers is the GMO (genetically modified organisms) debate. Cone’ research found that 84% of the consumers surveyed want companies to disclose information and educate them about GMOs in products because half said they don’t fully understand whether GMOs are good or bad.

Despite this confusion, three-in-five Americans are on the lookout for non GMO-labeled foods when shopping giving the following reasons:  
• 39% believes non-GMO foods are healthier
• 32% worries about the effects on the environment
• 24% questions the ethics behind the use of GMOs

Wal-Mart has stayed virtually silent on the GMO labeling debate after it leaned toward labeling support efforts in March 2013. An industry trade group and grocery competitor have each more recently spoken up.

"The Food and Drug Administration up to now has said that GMOs are safe, but we also recognize that some consumers want more information and companies might want to include GMO information, so we are asking the FDA to outline labeling standards companies can use voluntarily," Pamela Bailey, CEO of the Grocery Manufacturers Association, said in a statement.

Grocery retailer Wegmans also weighed in on the controversial topic of GMOs this week encouraging The FDA to implement a mandatory approval process for new GMO foods and label non-GMO foods.

Wegmans nutritionist Jane Andrews said in a NPR interview on Monday (April 21) it’s a complex issue and the store is trying to better educate its customers.

"Many people assume GMOs are in the produce department," she said. "They’re not, with a couple of exceptions. GMOs are fed to animals that produce our meats, eggs, poultry, seafood. Or it’s commodity crops that go into processed foods."

She said there's no way to tell if even minor ingredients are genetically modified and labeling would involve a paper trail of documentation.

“We think that official approval is important for consumers to know that the FDA has signed on and said this is a safe product,” Andrews said.

When it comes to genetically modified foods, Andrews said the store’s stance on the products is clear — GMOs are safe. However, not everyone is buying it. 

Last month Kroger and Safeway vowed not to sell genetically engineered salmon, joining Trader Joe’s, H-E-B, Aldi and Target.

Dr. Robin Bowen was on Tuesday (April 22) unanimously elected the new president of Arkansas Tech University, making her not only the first female to lead ATU, but also the first female to lead a public, four-year university in Arkansas.

Bowen, a Missouri native who is now serving as a vice president at Fitchburg State University in Massachusetts, was elected the 12th ATU president during a special board meeting on the south lawn of the Ross Pendergraft Library and Technology Center on the Russellville campus.

Bowen, executive vice president and provost at Fitchburg State University (Mass.), will assume the office of president at Arkansas Tech on July 1, 2014. She will succeed Dr. Robert Brown, who will retire after 21 years as Arkansas Tech president on June 30, 2014, and hold the titles of president emeritus and distinguished professor of economics at ATU effective July 1, 2014.

Founded in 1909, Arkansas Tech University serves more than 11,000 students on its campuses in Russellville and Ozark.

Arkansas Tech was named one of the five fastest growing public master’s degree-granting universities in the United States by The Chronicle of Higher Education in the printed edition of its “Almanac of Higher Education 2013” published on Aug. 23, 2013.

Included in the more than 100 programs of study offered at Arkansas Tech are the five most popular among college freshmen --- business, engineering, the physical and biological sciences, the social sciences and teacher education.

“I am both humbled and honored to be standing here before you being named the 12th president of Arkansas Tech University,” said Bowen before a crowd of several hundred students, faculty, staff, alumni and community members on Tuesday afternoon. “I want to thank the members of the search committee and the members of the board. You did a beautiful job with the search.

“I also want to thank President Brown and his wife, Jill,” continued Bowen. “You have been very gracious and I really appreciate everything that you are doing to help make this transition a smooth one. They have truly transformed this campus during their 21-year tenure, and I promise I will do everything within my power to continue that tradition of excellence.”

Bowen joined Fitchburg State University in June 2011 as vice president for academic affairs.

Her achievements at Fitchburg State have included leading a university-wide strategic planning process, increasing financial support for faculty scholarship, working with department chairs to develop a procedure for data-driven decision making and increasing the diversity of both the faculty and the student body.

Bowen also instituted programs that reached out to first-generation college families and increased retention among students with identified socioeconomic barriers to higher education.

Her track record in academic innovation at Fitchburg State includes facilitating the development of new programs in chemistry and game design. She collaborated with faculty to revamp developmental mathematics on campus and participated in an effort to develop the Common Community Read program to serve both the institution and the surrounding community.

Bowen added the titles of executive vice president and provost at Fitchburg State in July 2013. Her additional duties in that role have included representing the president in various external and internal activities, participating in local, state and national legislative affairs and reorganizing the administrative structure such that Fitchburg State now has four academic deans who oversee the academic departments.

Prior to her time at Fitchburg State, Bowen worked in administration at Donnelly College (Kan.), where she was interim provost and vice president for academic affairs; Washburn University (Kan.), where she was vice president for academic affairs; and Rockhurst University (Mo.), where she was dean of the School of Graduate and Professional Studies and associate dean of the College of Arts and Sciences.

Bowen has held faculty appointments at Texas Tech University, the Kansas University Medical Center, Rockhurst University and Washburn University.

A native of Carl Junction, Mo., Bowen earned a bachelor’s degree in occupational therapy from the University of Kansas and a master’s degree in rehabilitation counseling from the University of Arkansas. She received her doctorate in higher education administration degree from Texas Tech University.

Bowen and her husband, Doug, are parents of three children: daughters Alexa and Brynn and son Brock.

Two closely watched freight reports indicate positive movement in the U.S. economy, but also note that “signals are still mixed,” and that truck tonnage gains in 2014 are not likely to be as strong as they were in 2013.

The American Trucking Associations’ Truck Tonnage Index was up just 0.6% in March after a 1.9% gain in February. For the first quarter of 2014, the index is up 2.3% compared to the same period in 2013, but was down 2.5% compared to the fourth quarter of 2013.

The not-seasonally adjusted index, which represents the real change in tonnage hauled by the fleets, was 12.1% below the previous month.

“Tonnage continued to claw its way out of the hole that was dug in December and January,” ATA Chief Economist Bob Costello said in his monthly report. “However, with a cumulative gain of 2.5% during the last two months, we still have a way to go to offset the total loss of 5.2% in December and January.”

Trucking serves as a barometer of the U.S. economy, representing 68.5% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods, according to the ATA. Trucks hauled 9.4 billion tons of freight in 2012. Motor carriers collected $642.1 billion, or 80.7% of total revenue earned by all transport modes.

Trucking industry fundamentals “look good,” but the pace of growth seen in 2013 may not continue into 2014.
 
“While it will take time to regain what was lost due to weather and other factors, like a potential inventory correction in the first quarter, I remain optimistic for 2014; however, don’t expect a 6.3% annual gain in truck tonnage like during 2013,” Costello explained.

The Cass Freight Index reported that shipments were up 0.4% compared to March 2013, but up 6.6% compared to February.

Cass uses data from $22 billion in annual freight transactions processed by its information processing division to create the index. The data comes from a Cass client base of 350 large shippers.

Rosalyn Wilson, a supply chain expert and senior business analyst with Vienna, Va.-based Delcan Corp., also noted in the Cass Freight report for March her uncertainty about the pace of growth in 2014.

“All in all, lots of strengthening in the economy, but taking everything into consideration the signals are still mixed. It will be interesting to see if we can continue to climb up or if we will keep with the trend of recent years and stumble in the second quarter,” Wilson noted.

Wilson’s report included the following points.
• “Shipment volume and total freight payments continued to climb in March, ending the first quarter of the year on a high note. Bad weather continued to plague many parts of the country, but transportation seemed to be less affected than in January and February.”

• “The number of shipments was 0.4 percent higher than last March and 4.6 percent higher than in March of 2012. Railroad carloads rose fairly steadily throughout March, up over 5 percent, while intermodal loadings increased over 3 percent. Truck traffic has also been picking up after falling for the first two months of the year.”

• “New (manufacturing) orders, a bellwether of future freight, rose again in March, up 1.1 percent, after plunging dramatically just two months ago. The backlog of orders jumped 10.6 percent, another indicator that freight volumes should be growing in coming months. Freight volumes in the first quarter were up over 10 percent over Q4 2013, showing the strongest start of the last few years, but it remains to be seen whether the number of shipments will follow the trends of recent years and falter in the second quarter.”

• “Manufacturing and production have turned a corner and are back in expansion mode. Strong new orders and backlog figures bode well for the freight sector. Imports were up in February, especially for autos and parts. Sales of cars and pickup trucks – which are considered a harbinger of recovery in the construction sector – rose sharply in March.”

• “The labor picture appears to be strengthening on the surface, with 192,000 jobs added last month, but Gallup’s measure of the percentage of the adult population that is employed full time (at least 30 hours a week) dropped to 42.7 percent, just slightly above the low point in February 2011. Gallup also puts the seasonally adjusted unemployment rate at 7.5 percent, compared to the Bureau of Labor Statistics’ (BLS) 6.7 percent (the Gallup figure includes the so‐called discouraged workers that fall off the BLS rolls.) Private‐sector payrolls are now higher than in December 2007, the start of the Great Recession.”

Brad Delco, a transportation industry analyst with Little Rock-based Stephens Inc., noted in a March 26 investor note on the less-than-truckload (LTL) industry that tonnage gains should bode well for companies like Fort Smith-based ABF Freight System – a subsidiary of Arkansas Best Corp.

Delco wrote that “tonnage has been stronger than previously expected in 1Q assuming that March plays out well (which indications have suggested they have), and we think commentary regarding this on the earnings calls can help to buoy LTL stocks despite lower-than-expected earnings due to weather.” In the note, which also included support from Stephens’ associate analyst Ben Hearnsberger, Delco said the LTL industry should also benefit from improved pricing.

“Per updates from LTLs at industry conferences and our private company channel checks we believe that tonnage levels have accelerated throughout the quarter and that core contractual pricing for most of the industry has remained strong,” he wrote.

Arkansas Best is scheduled to announce first quarter earnings on May 1.

With a population on the brink of 500,000, Benton and Washington counties grew beyond their infrastructure long ago. More than a dozen major road projects are underway in Benton County, which means the growing pains will exist for a few more years, said Steve Lawrence, chief engineer for District 9 of the Arkansas Highway & Transportation Department. 

Lawrence recently spoke at the Bentonville-Bella Vista Chamber of Commerce Business Matters breakfast meeting sharing the timelines and costs of these projects throughout Benton County.

After more than a decade of planning, the first section of the Bella Vista Bypass opened for traffic on Tuesday (April 22). This three miles section connects U.S. 72S and U.S. 72N bypassing the small town of Hiwasse. The section cost was $20 million. The next phase is slated to open this fall which connects U.S. 72N to C.R. 34, a $13 million project. The biggest stretch of bypass construction began in February from U.S. 71 to U.S. 72, a $53 million project slated for completion in the fall of 2016, Lawrence said.

Two more phases of the Bella Vista Bypass have been put on hold until Missouri can come up with the funds to build their portion of the highway. Lawrence said it will take $10 million to connect C.R. 34 to the Missouri line and there is also $30 million tagged to build the interchange at the southern entrance of the bypass at Highway 71 between Bentonville and Bella Vista.

In the meantime, the state is building a roundabout to provide connectivity between the  bypass and U.S. 71 and junction to Interstate 540, now called I-49. The roundabout is an interim cure so cars and trucks can travel the finished portions of the bypass, Lawrence said.

One of the more visible projects is the widening of the new I-49 to six lanes from U.S. 62 to U.S. 72 — a 26-mile stretch taking place over the next two and half years. The widening of I-49 will take place over the next three years. The first phase from Wagon Wheel to Highway 264 it is a $15 million job with completion slated for this fall.

The next phase expected to begin this summer is construction from New Hope Road, Exit 84 in Rogers up to Exit 86 at Highways 62/102, Rogers/Bentonville. Lawrence said next year there is $60 million of widening projects slated for the new I-49 corridor through Benton County that will be conducted in two phases a two-mile stretch from Exit 86 north to Exit 88 — a $20 million project. Widening from Exit 78 in Lowell up to New Hope Road at Exit 84 with a $40 million price tag. Lawrence said there is also a major interchange improvement project on tap for 2016 at Exit 85 Bentonville/Rogers.

Elsewhere in the county, two other large projects are nearing completion. The state is widening U.S. 62 between Avoca and Garfield to five lanes. Lawrence said this $23 million project is slated for completion in the fall of 2015. U.S. 102 from Greenhouse Road in Bentonville to Centerton is also getting a five lane makeover with a $7 million price tag. The work is close to completion.

Two other large projects in Washington County are also nearing completion. The Fayetteville flyover has been an 18-month project costing $6.2 million. Contractors are ready to pour the concrete in the next couple of weeks as soon as temperatures stay above 50 degrees. The flyover will connect traffic headed north on College Avenue with easy access to the Fulbright Expressway without having to go through the red light and make a U-turn at Joyce Boulevard. The project is expected to ease traffic congestion around the Northwest Arkansas Mall area.

In Springdale, the $11 million Don Tyson interchange in slated to open in August and will provide an alternate route to U.S. 71 and the business district. The goal is also to help alleviate traffic congestion on U.S. 412. City officials also expect this will open up development by the Arvest Ball Park as it provides easier access to the west side of the interstate.

On the 125th anniversary of Oklahoma City's founding, its former Mayor Kirk Humphreys was in Fort Smith to speak to the city Board of Directors about what his city did to transform from a place that was boring and dead after 5 p.m. to a city that is now among the fastest growing in America.

He said the transformation seen in Oklahoma City started because of MAPS, the city's Metropolitan Area Projects sales tax initiative passed in the early 1990s, which raised the city's sales tax by a penny (from a rate of 7.375% to 8.375%).

According to Humphreys, the sales tax initiative turned the city "that had nothing going for it" into a city with some of the lowest unemployment numbers in the nation, a growing population and amenities that rival larger cities, such as Dallas and Denver.

But in order for the once-decaying city to get to a point of growth and pass the sales tax that has now been approved in some form or fashion seven different times and has resulted in more than $4 billion in private development in the city's downtown core, Humphreys said the city had to have five things:
• A pressing need;
• Unity among elected leaders;
• A mayor with political capital;
• A strategic focus; and
• The ability to deliver on promises made.

The city was able to convince voters of the need and the result has been the construction of a new sports arena that now houses the Oklahoma City Thunder professional basketball team, a new baseball facility, a canal through the heart of the city's former warehouse district, as well as numerous other projects. He said the vision was cast by former city leaders, including then-Mayor Ron Norick.

"You see, our role as city leaders is to set the agenda for our city," he said. "It's our role to say, 'No. Here's where we are, but here's where we could be.' Your city will never go beyond your vision. It just won't. They may catch up with it, but they'll never go beyond it."

Humphreys told the Board that the city had a prime opportunity to do something with the city's riverfront, telling them to "look at what it could be" versus what it is.

Asked what Fort Smith could do to take the lessons from Oklahoma City's rebirth and apply them locally, Humphreys said the city should look at out-of-the box ideas to transform the city.

"I think there's some options that you have with…you could come up with a blended program of public and private partnership," he said, further elaborating on the possibility of Fort Smith doing a half cent sales tax to jump start revitalization efforts.

"What if you said, 'OK. We're going to do a half-penny sales tax.' I would make taxes limited in duration," Humphreys said, adding that the city could potentially double their money by getting local corporations or other entities based in the region to match spending possibly dollar for dollar so that Fort Smith could have more bang with its buck.

While the former mayor was simply floating a theoretical example, he again said its incumbent on the leadership of Fort Smith to be the visionaries and think outside the box.

"I think the big question is not what is our tax rate, but are we satisfied with the way my city is? And if I'm not satisfied with the way my city is, then I've got to do something to change it. You can only economize so much and sooner or later you have to make new investment."

WATER PARK BIDS
In other business, the Board held a special session in order to approve a set of resolutions that approved bids for subcontractors on the Ben Geren Aquatics Center, as well as increased the fee payment to Flintco, the project's construction manager.

While the resolution to approve 29 contracts totaling $6.267 million was passed without opposition, the second resolution to amend the fee schedule with Tulsa, Okla.-based Flintco to $466,530 from an original fee of $371,250 received the no votes of City Directors George Catsavis, Philip Merry, and Pam Weber. The increase, according to Deputy City Administrator Jeff Dingman, was due to the increased cost of construction from $7.5 million to $9.348 million since the original fee agreement was signed.

"The resolution goes on to establish the Construction Manager's Guaranteed Maximum Price of $9,763,852 for all construction phases of the project," Dingman said in a memo to the Board, adding that including fees to be paid to Larkin Auatics and money to pay for furniture, fixtures and a point of sale system bring the total cost of the project to $10.897 million. Between the city and Sebastian County, both governments had committed a combined $10.9 million for the project.

Merry said he was in favor of the project, but did not agree with the move to increase fees to be paid to Flintco before any substantial work had been completed on the project.

"I'm a real believe in a deal's a deal. I'm so for the aquatics (center). I'm for it. But I feel like a deal's a deal. I feel like there had been a commitment made for services to be rendered, there had been a commitment made on what the city should pay and to now give a raise or some sort of increased compensation before we even break ground feels funny. It seems like that'd be something you do at the end if you come in under budget and had a great successful project and wanted to do a bonus. But before we enter into performance to even be had, we're already giving raises."

County Judge David Hudson has told The City Wire that the Quorum Court was not required by law to approve the bids.

Fort Smith City Director Kevin Settle announced Tuesday (April 22) that he would seek a third term on the city's Board of Directors. Settle, who serves as an at-large director and as vice mayor, so far has no announced opponent in his race.

And while rumors have been swirling for months that Settle had his eyes on the mayor's office, Settle said it just wasn't the right move for him.

"I was asked to look at a few things the last couple of years. I felt that with my experience and leadership as a city director, I could best serve the city in that capacity. I felt like that was best for me and my family and the citizens of Fort Smith."

A press release announcing Settle's re-election detailed some of the projects he said were highlights of his second term, which include "residential, industrial and I-49 growth in Chaffee Crossing; continued wet weather, drainage and street improvements; new job recruitment and existing job retention; sewer and water plant treatment expansions; fire station upgrades, expansion and new equipment; Vision 2025, including comprehensive plan updates; reduction in sanitation rates for all citizens, and the progress the City has made in developing regional economic relationships."

While Settle listed a wide range of highlights the city has experienced during his time on the Board, he told The City Wire that there was still a lot more to do.

"Continuing the wet weather improvements — we need to follow through on those and they are vital to our city. Continuation of the comprehensive plan updates — as we heard from the (former) Oklahoma City mayor (Kirk Humphreys on Tuesday, April 22), they put a plan together and stuck to the plan. We want to make sure that we stick with that plan."

He said improvements to the city's parks system, as well as completion of the Ben Geren Aquatics Center, are high priorities, as well.

Settle said improvements are also needed to make the city more business friendly, adding that one way to improve working relationships with businesses and the public at large would be adding a way to apply for business permits online.

As for how Settle has handled the added responsibilities of serving as vice mayor during his second term on the Board, he said it has been a seamless transition.

"It's just what the Board asked to me to take care of when (Mayor Sandy Sanders is) not there. It's just part of being a director, it's part of the city. I take it in stride with being a director. It was asked of me by the directors and I've done it."

Settle, a graduate of Southside HIgh School, WestArk Community College and the University of Arkansas in Fayetteville, works as an engineering manager at Exide Technologies. He and his wife, Terri, have two daughters.

Other announced candidates for Board positions this year include former City Director Don Hutchings, who is running to replace retiring City Director Philip Merry. Mayor Sandy Sanders is seeking a second term in office.

City Director Pam Weber's at-large position is also up for re-election this year, though she has not yet announced whether she plans to seek re-election.

Arkansas is known as being a large exporter of farm-raised goods, such as rice and soybeans. But another export in Arkansas could be getting a push for incentives during the next legislative session in hopes that it will help expand the industry and make Arkansas competitive with surrounding states.

According to Chad Causey, executive director of the Arkansas Aerospace Alliance, the industry is among the largest exporters in the state and it is responsible for thousands of jobs.

"Companies employ about 9,000 in the industry" in Arkansas, he said.

And the industry continues to grow, in spite of cutbacks in government spending that typically fund contracts with large aerospace and defense contractors.

"The economy in aerospace is turning the corner. We're starting to see growth. Now there was a concern (about the impact) Sequestration (would have) on defense spending, but Lockheed Martin just had between a $250 and $500 million contract in ballistics. So there might be some contraction nationally but we're seeing some big awards for Camden that will bode well for them."

He said for the industry to continue to thrive in Arkansas, the state would have to continually work to have a qualified workforce available to meet the demands of companies already in the area and looking to come to the area.

"We're working with the STEM (Science, Technology, Engineering, and Mathematics) Coalition and two- and four-year schools right now," he said. "But we are also working toward things we can do with the general assembly to further incentivize that workforce and attracting new workforce."

Already other surrounding states offer incentives to attract aerospace industry to their regions. Oklahoma officials recently passed legislation that would extend tax incentives to not only employers, but also employees, in the aerospace industry.

"The aerospace engineer tax credit has helped to create hundreds of new, high paying jobs for skilled Oklahomans," said Republican Gov. Mary Fallin on April 9, the day she signed the extension of the law. "It's also played a key role in maintaining Oklahoma's position as an internationally recognized hub for aerospace business. …When it comes to the growth-potential for aerospace in Oklahoma, the sky is truly the limit. This legislation will help us to attract and retain new business and retain the great jobs made available by industry giants like Boeing and American Airlines."

Causey said the AAA has watched the Oklahoma tax credit closely.

"That's something the Alliance is interested in," he said. "We have to look at the regional approach. We are competing for a trained workforce in the same region they are. We are interested in the ways they incentivize getting a trained workforce. That is something we will watch and consider for the next General Assembly. That is something we will advocate."

Before going to the General Assembly and seeking any sort of incentives or other programs to help the Arkansas aerospace industry, he said a platform is needed.

"We are in the midst of developing an aerospace platform that we would take to the General Defense and Aviation Caucus members to work with them to incentivize further ways that we can attract and retain a trained workforce."

According to Causey, addressing incentives and working with local schools to create programs is just one part of the equation. He said Arkansas needs to continue promoting itself as a regional player in the field, as well, marketing itself to suppliers that serve larger aerospace manufacturers in Kansas, Oklahoma and Texas.

Part of that promotion involves taking Arkansas to the aerospace industry through events like international air shows and industry conferences, instead of expecting the industry to reach out to Arkansas. Causey said plans are already underway for a state delegation to visit an international air show near London in the United Kingdom later this year.

"So we're already in the process of educating the industry that we're located here and open for business. That is our number one export and a lot of people don't know, especially in light of us being a heavy agrarian state, but our number one export to the global market is aerospace goods," he said.

He also said Arkansas is well established in the industry, but it is not enough to just be satisfied, which is why the AAA is going to make its push for legislation and incentives next year.

"That will be a good launching point in the General Assembly during the next few years, the fruit of that labor will be improving the business environment for aerospace companies. We're doing that now and I think Arkansas is a great place for aerospace companies to grow in."

On the day when the Port of Fort Smith officially opened its new railroad tracks to the public, its operator was full of thankfulness for the grant the port received from the state of Arkansas to replace aging rail lines.

Marty Shell, president and CEO of Van Buren-based Five Rivers Distribution and the operator of the Ports of Fort Smith and Van Buren, said it was only with money from the state that the project was been completed.

"We are just showing our appreciation to Sen. (Jake) Files, Sen. (Bruce) Holland, Rep. (George) McGill, and Rep. (Stephanie) Malone. They brought state dollars into the Fort Smith River Valley area for infrastructure needs. So we are showing our appreciation to them for getting that money for us to get that done,” Shell said.

Files, a Republican senator from Fort Smith, said it was a bi-partisan effort by Fort Smith's delegation in the General Assembly that made the replacement of the railroad line at the port possible.

"This funding in particular came from general improvement funds. And it was important – all the representatives and senators from this area deemed it important enough (for funding). We were going to lose jobs and future opportunities for jobs if something wasn't done,” Files explained.

In all, the grant from the state's general improvement funds provided $83,000 in funding "to re-do the railroad tracks at the port of Fort Smith," Shell said. "The tracks were 43-years-old. We put in new tracks at the port back in December.”

Shell echoed Files' explanation that jobs were at stake if the nearly half-century old tracks were not replaced.

"The Port of Fort Smith, especially for the entire Fort Smith region, it's a public port. To have intermodal facilities, it's vital to the region to retain jobs and attract jobs. It's important for the economy. To revamp the rail, that helps us continue with our rail growth."

According to statistics provided by Shell, when his company took over operations of the port, there was no rail traffic operating at the facility. He said as of last year, the number had jumped to 417 rail cars that had traveled through the port's facility and that number should continue to increase with the new tracks.

"The old tracks couldn't handle the traffic we were putting through there. With their help, we were able to put the new track down."

With the new track, Shell is already planning for the future of business operations at the port.

"The plan for the future is to continue the growth for the port with truck, barge and rail. But putting these new rails in, it gave us another 20 to 30 years (before we need additional rail enhancements). Without those four individuals and the city of Fort Smith and the port, we wouldn't see the growth and the rail for that facility. It was a very good thing to happen for this area."

Part of the growth plans, Shell said, include a new 30,000-square-foot warehouse facility in coming years, but he said he couldn't plan on expansion before the rails were replaced.

Files said more growth is likely to come to the river in the coming years, thanks to legislation he and others in the legislature sponsored and pushed through during the 2013 session.

"I was the lead sponsor of a bill we passed to form a tax credit for waterways … to go to public and private entities to do more development along the river. We've got a tremendous opportunity to be a major player in transportation. It's been overlooked."

He specifically mentioned the dredging of the Arkansas River to create a 12-foot deep channel, among many other needs along the river.

"I was encouraged (by the bill's passage)," he said, adding that projects like what was shown to the public Thursday (April 24) would continue happening in the years to come and would be an important part of the state's economy.

"What's good for Fort Smith is good for Arkansas," Files said.