It was just more than a month ago that Fort Smith business and civic leaders said a concept similar to North Little Rock's Arkansas Innovation Hub was needed in the area and now the Fayetteville and Fort Smith public libraries have plans to introduce one aspect of the AIH concept.

Expansion proposals for the Fayetteville and Fort Smith Public Libraries include plans for “maker spaces,” which Fort Smith Public Library Executive Director Jennifer Goodson described as "when the library provides tools and training to allow people to make or create something from imagination to production. In this space, you create, invent and learn."

At the Fort Smith library, Goodson and the library's board of directors have proposed a plan to raise Fort Smith's millage rates by two mills in order to add $2.8 million to the library's operating budget which would allow it to invest in technologies to take maker spaces from concept to reality. It would have to be approved by Fort Smith voters in an election set for Aug. 12.

"In our particular space, we've talked about a 3-D printer, a good quality video camera and software, maybe a green screen. And we've talked about VHS conversation equipment," she said. "If we're successful (with the millage vote Aug. 12), it will include talking to the public and seeing what other things are possible. The emphasis is on technology."

At the Fayetteville library, Executive Director David Johnson said the library's dream is to purchase the old Fayetteville City Hospital and develop it as a library expansion with a large maker space included, with a total price tag between $50 million and $55 million. He said the purpose in creating maker spaces is not to necessarily be a business incubator, but to provide up to date services expected of a library in the 21st century.

"I think you see a lot of that coming around in the last decade, where there's more of a movement to that kind of activity," he said. "As libraries have shifted to more of a community space to meet and congregate, activities like maker spaces have bubbled to the surface."

Johnson said the addition of maker spaces to serve age groups from young to old and socio-economic levels from rich to poor is in keeping with the demands of the community and provides equal opportunities for learning and if an individual needs the space to improve or expand offerings for his or her business — like the occasional use of a 3-D printer — then that is what the Fayetteville library is hoping to offer with the maker spaces.

"When you look at what (groups) our library serves, it transcends all economic levels. It's the great equalizer. We tear down all barriers. We try to provide the community with all the different types of resources that they say they want or that we recognize support activities here in the community."

Goodson said while the plan has not been for the library to be a business incubator on the scale of North Little Rock's Innovation Hub, she said maker spaces at libraries like Fort Smith's can fill that need until either a private sector solution comes forward or a public-private partnership comes about to provide funding and support for such an effort.

"We've not had those formal discussions, but the library has had a long history of partnerships. Whenever we have the opportunity, we try to partner with groups to broaden our resources. We'd anticipate doing that with the maker spaces, as well," she said.

In Fayetteville, Johnson said informal discussions have taken place between the library and the Fayetteville Chamber of Commerce regarding the maker spaces proposed for the library campus in downtown Fayetteville and possibly housing a full business incubation center, but so far nothing formal has come from the talks.

"There's been some conversations about maybe the Chamber of Commerce or people doing that innovation, incubation space. There's been talk about having that in the library expansion. We're open to any ideas and suggestions with anyone who would be willing to work out a deal," he said. "They acknowledge what the library does is free access to the community. If we could work out something unique, I'd be willing to listen and see if we could make it work. I've had some conversations with the Chamber of Commerce about that opportunity, but it is just a high level discussion. There has been no conversation beyond, 'Hey, what do you think of this idea?'"

Even though Fort Smith is moving forward with its plans with the Aug. 12 vote, so far Johnson said the Fayetteville library has not determined what route it would take to fund the admittedly ambitious plan. He said the library building and adjoining parking deck were constructed through a three-quarters of a cent sales tax that was in place for the library for 18 months. It raised $18 million, plus the library raised private funds – with major support from Jim Blair – to supplement the sales tax. But he said the tax option is unavailable as the three-quarters of a cent sales tax is currently in use for long-term projects in the city.

"We will have to explore other options, possibly a millage increase or a capital campaign. There's been no decision yet," he said. "There's no clarity on how we're going to do that. But as soon as we do, we'll get it in front of the community to see if they want to help us. That conversation with the community is ahead of us."
Whatever option the library pursues in its attempt to make the $50 million plus expansion with a maker space a reality, he said the public will likely see more local libraries entering the maker space marketplace due to the services it can provide citizens.

Goodson said maker spaces popping up at libraries across the nation show that libraries could have more of an impact locally than just reaching people with the written word.

"The beauty of the library is that it can be an economic engine. It could allow entrepreneurs to get the hands-on training to get going, to get the spark they need to get started. But it can also be a space for people to exercise creativity. It can be economic and incubating, but it doesn't have to be. And that's the nice thing about the public library. It meets as many of those needs as possible."

Two prominent attorneys who have been in the news in recent weeks and months due to their legal wrangling with the city of Fort Smith have joined forces to create a new law firm.

Attorneys Matt Campbell and Joey McCutchen, along with William Buckley, have created the law firm McCutchen, Buckley, Campbell — The Law Firm.

"Our purpose is to impact the lives of our clients and citizens in our communities, and to do it one person, one moment, and one interaction at a time," McCutchen said in an e-mail to The City Wire. "We do that by protecting clients' livelihoods and legal rights against any infringement, whether from catastrophic injuries from a business's violation of safety rules or from government overreach in our communities."

McCutchen, on behalf of client Jack Swink of Fort Smith, filed a lawsuit July 1 that alleged the city of Fort Smith violated the Arkansas Freedom of Information Act by polling city directors by telephone about whether or not to remove items from a meeting agenda. He has previously been involved in litigation against the city regarding other alleged violations of the Arkansas FOIA.

Campbell, who lives in Pulaski County, is legal counsel in a whistleblower lawsuit against the Fort Smith Police Department and revealed in a post on his Blue Hog Report blog allegations that the Daily and Woods Law Firm — the city's contracted legal counsel — had charged for services not performed and overcharged for others. City Attorney Jerry Canfield has denied the allegations.

Campbell said while he and McCutchen have been involved in legal disputes with the city in recent months, the law firm's focus would be about more than just government transparency.

"I want to do more personal injury and I want to be able to focus the rest of my practice in terms of consumer protection and civil rights. A one stop shop for helping people," Campbell told The City Wire. "Joey had the same mindset. He wanted to do personal injury. And I think that would be the primary driver of the firm, but there are other (areas of practice) they want to focus on, too."

Campbell partnering with McCutchen — essentially merging his Pinnacle Law Firm with McCutchen's law firm — came about following the departure of McCutchen's former legal partner Chip Sexton. Any lawsuits being fought by the attorneys in the firm will be unaffected by the formation of the new company, which became official last week, Campbell noted.

And even though the two men partnering in practice may appear like combining oil and water due to Campbell's liberal political leanings and McCutchen's conservative leanings, McCutchen said he and Campbell have long been involved in similar causes, such as tort reform.

"I was aware of Matt's reputation in the legal community and I was impressed with the thoroughness and credibility that Matt showed in his reporting on the Blue Hog Report, as well," he said. "Following our discussions about how to best fight against the impeding 'tort-reform' efforts in Arkansas, I think we both quickly realized that working together as partners would be beneficial to our clients and the people of Arkansas generally."

Campbell added that with any political persuasion, there will always be some level of agreement.

"I've said for a while that if you go far enough left or far enough right, you meet up on the other side and find some stuff to agree on. … We're not too far apart, at least as far as open and transparent government."

Campbell said he would work in Fort Smith two days each week for the foreseeable future and spend the rest of the week at the firm's office in North Little Rock.

The local homebuilding pace appears to be stabilizing among the majority of the large cities in the two-county area. Commercial projects, including multifamily housing, were showing signs of resurgence through the first half of 2014, but June numbers tracked lower than a year ago.

Combined new permit values in June among Fayetteville, Springdale, Rogers and Bentonville totaled $53.196 million, down 24% from the $70.7 million reported in June of 2013. 

Homebuilders initiated 105 new single family homes in June, with a cumulative permit value of $24.505 million. This compared to 118 new starts valued at $26.767 million in June of 2013. The home building pace was on par with the June 2012 activity — 105 permits valued at $24.57 million. 

Fred Rausch, CEO of the Rausch Coleman Homes, said his company is on target for a record year in Northwest Arkansas. He said market demand for first-time buyers is strong and he doesn’t expect that to change given the steady growth patterns indicative of the regional economy.

“We are pleased with where the local market is going. Traffic is good at our price points, but there are always challenges to work through,” Rausch said.

He cites tight credit that is keeping some potential buyers at bay, material costs are rising and some labor is harder to come by given that more builders are active in Northwest Arkansas today. Rausch said one other sign that bears watching are the new higher-end homes under construction by contractors from outside the area as local banks are eager to lend again.

June permit values for new single family homes increased in Fayetteville and Bentonville from the year-ago period. Springdale and Rogers issued fewer permits compared to June 2013. Following are the residential permit numbers for the respective cities.

RESIDENTIAL PERMITS (JUNE)
Fayetteville
2014: $6.75 million
2013: $3.88 million
2012: $6.1 million

Rogers 
2014: $6.34 million
2013: $7.30 million
2012: $4.1 million 

Bentonville
2014: $9.192 million
2013: $10.34 million
2012: $8.94 million

Springdale
2014: $2.21million
2013: $3.02 million
2012: $3.26 million 

COMMERCIAL PROJECTS
The four cities issued permits for new commercial and multi-family projects valued at $31.092 million in June, down 28.8% from the $43.7 million reported in June of 2013. 

In Fayetteville the two new permits totaled $4.89 million, $4.4 million of that is for the new Crane Honda Dealership under construction at 1919 Foxglove Drive, near Interstate 49 between the Arkansas 112 and Porter Road exits. Dunkin Donuts is under construction at 1855 Martin Luther King Blvd. in Fayetteville. This project is valued at $446,000. A year ago, the city issued permits valued at $39 million, which included a large $25 million multifamily project.

In Rogers the city approved new commercial permits valued at $5.217 million in June, up from $3 million a year ago. A large retail shell is under construction at 5001 Pauline Whitaker Parkway. It is a retail strip center with a price tag of $1.525 million. A new Kindergrove day care facility is being built at 696 S. 28th St., with a cost of $1.3 million. The Twin Peaks restaurant and sports bar is under construction at 2400 Promenade Boulevard at a recorded cost of $1.527 million. Lastly, the new Heritage Indian Motorcycle dealership was approved at a cost of $440,000 at 1711 Hudson Road.

Bentonville reported commercial permits worth $20.985 million in June, up sharply from the $1.7 million reported a year ago. The Bentonville numbers include six temporary classrooms built for the Bentonville school district at a cost of $109,988; a $6 million multifamily project by Legacy Housing LLC.; a large warehouse at 2608 SE J. Street valued at $12.07 million and an office building at 2600 SE J. Street valued at $2.78 million.

Springdale did not issue new commercial building permits in June. 

Health Department permit record indicate several new businesses on tap for Benton County in the coming months. Permits were issued for the Shoe Department at 200 N. Progressive Ave. in Siloam Springs, JJ’s Grill at 12 Cunningham Corner in Bella Vista,  The Big Chill bar and grill at 3000 Pinnacle Hills Parkway in Rogers, and Whataburger, the Texas-based burger franchise, is under construction at 4335 S. Pleasant Crossing Blvd. in Rogers.

Health department permits generally precede city building permits by three months and provide a glimpse ahead into future commercial building activity. Following are the commercial permit numbers for the respective cities.

COMMERCIAL PERMITS (JUNE)
Fayetteville 
2014: $4.89 million
2013: $39 million 
2012: $27 million

Rogers
2014: $5.217 million
2013: $3 million
2012: $650,0000

Bentonville
2014: $20.98 million
2013: $1.7 million
2012: $7.32 million

Springdale
2014: $0
2013: $231,846
2012: $0

Fort Smith-based ArcBest (formerly Arkansas Best Corp.) appears to be on its way to two consecutive years of positive financial results, with net income for the first six months of 2014 at $12.015 million, a big improvement over the $8.517 million loss during the same period in 2013.

The transportation holding company reported early Thursday (July 31) second quarter net income of $17.208 million on revenue of $658.646 million. Excluding a one-time pension charge, the net income was $17.764 million, or 65 cents per share. The per share earnings missed the consensus estimate of 72 cents, but revenue beat the estimate of $642.6 million.

Total revenue for the first half of 2014 totaled $1.236 billion, better than the $1.097 billion during the same period of 2013. Most of the company’s revenue and income is derived from ABF Freight, one of the nation’s largest less-than-truckload carriers. Net income during 2013 was $15.8 million, much better than the $7.7 million loss in 2012 and the most the company has earned in a year since 2008.

“Our second quarter results improved significantly from both the first quarter of 2014 and the year-ago quarter, which was welcome news as we emerged from the harsh winter weather earlier this year,” ArcBest President and CEO Judy McReynolds said in the earnings statement. “As the economy picked up in the second quarter, ABF Freight experienced better pricing conditions and also saw the positive impact from the new labor agreement, while Panther reported one of the strongest quarters in its history. We are also seeing more customers buying at the enterprise level, when they require two or more ArcBest services. We are focused on taking advantage of all opportunities to better serve customers with holistic solutions across the supply chain.”

Although ABF Freight still accounts for a bulk of the income and revenue at ArcBest, Panther Expedited operating income was $4.358 million in the second quarter, well ahead of the $1.506 million during the second quarter of 2013. More impressive is that the operating income for the logistics subsidiary during the first half of 2014 is $7.722 million, much higher than the $642,000 in the same period of 2013 and not much less than the $10.653 million for the much larger ABF Freight division.

Panther was acquired in June 2012 for $180 million.

“The hard work we have done over the last few years to better position ABF Freight and to grow and invest in our emerging businesses is reflected in today’s results,” McReynolds said. “It is particularly gratifying to see Panther achieving such strong results after two full years as an ArcBest company.”

In addition to returning to consistent profitability, an ArcBest goal has been to diversify the revenue stream. During the second quarter, non-ABF Freight (non-asset) revenue was 27% of the total, ahead of the 24 during the 2013 quarter. And that mix has more than doubled in less than three years. Revenue from the non-asset-based operations was 17.8% of the 2012 total revenue for 2012, and just 10.6% in 2011.

SEGMENT NUMBERS Q1-Q2 2014
ABFFreight
Operating income
2014 (January-June): $10.653 million
2013 (January-June): –$17.052 million

Premium Logistics (Panther)
Operating income
2014 (January-June): $7.722 million
2013 (January-June): $642,000

Domestic/Global transportation management (ABF Logistics)
Operating income
2014 (January-June): $1.389 million
2013 (January-June): $1.023 million

Emergency/preventative maintenance (FleetNet)
Operating income
2014 (January-June): $2,101 million
2013 (January-June): $1.522 million

Household goods moving (ABF Moving)
Operating income
2014 (January-June): –$218,000
2013 (January-June):  $717,000

The company provided the following notes about key changes – many allowed by the new labor agreement with the International Brotherhood of Teamsters – and conditions within its ABF Freight division.

• An improving economic environment and business growth at ABF Freight contributed to an additional 6% of second quarter daily freight tonnage versus the same period last year.

• Tightening network capacity combined with improving pricing trends and a lower cost structure resulted in better operating margins.

• Total second quarter revenue per hundredweight increased by 4.2% over last year and increased 6.9% versus first quarter of this year.

• ABF Freight secured better freight rates and account pricing improvements amid broad LTL and truckload industry pricing strength.

• ABF Freight benefited from the previously announced network consolidation of 30 terminals that began in July 2013 and was completed in mid-March of this year.

• ABF Freight is now able to use purchased transportation – a flexibility component of the new ABF Freight labor contract – which has helped improve network operations.

• The level of savings from network changes as well as the expected incremental margins on revenue growth were not realized as ABF Freight brought on a significant number of new dock employees to handle the shipment growth. The company said the process will improve as the new employees complete training and gain experience.

Shares of ArcBest (NASDAQ: ARCB) closed Wednesday at $42.29. During the past 52 weeks the share price has ranged from a $45.68 high to a $19.40 low.

The city of Fort Smith has responded in a court filing to a lawsuit alleging that the city had violated the Arkansas Freedom of Information Act when City Clerk Sherri Gard twice contacted city directors regarding the removal of an item from a meeting agenda.

In the filing by City Attorney Jerry Canfield and attorney Michael Redd, who is representing City Director Keith Lau, the men acknowledged that Gard had polled board members regarding removing two items from meeting agendas after City Director Mike Lorenz called Gard to initiate the process and said it was perfectly acceptable under Arkansas law.

The items in question, placed on the agenda by City Director Philip Merry and seconded by City Director Pam Weber, included a resolution that would have hired an auditor to review legal billings from Canfield's law firm Daily and Woods to the city after allegations were leveled by attorney and blogger Matt Campbell that the city was being charged for services not rendered and overcharged for other services. Another resolution would have established a committee to review whether the city should continue with contracted legal services provided by Daily and Woods or hire in-house legal counsel.

"Defendants admit that the Fort Smith Code contains procedures for the formulating of agendas of meetings of the Fort Smith Board of Directors," Canfield writes in his response. "The Arkansas General Assembly has delegated to municipalities, including municipalities operating under the city administrator form of government, the power to adopt rules to govern the formulation of agendas for meetings of the board of directors of the municipalities."

The lawsuit, filed by attorney Joey McCutchen on behalf of Fort Smith resident Jack Swink, said cities could not impose ordinances that would "give public officials the power to do something that would otherwise be prohibited under state law, including the open-meetings provisions of the AFOIA."

Due to the belief by Swink and McCutchen that the city ordinance allowing directors to remove items from agendas that led to the lawsuit, the lawsuit asks that the ordinance be invalidated. But in the response dated July 18, Canfield said invalidating the city ordinance that allows one director to ask that an item be removed so long as three other directors also notify the city clerk that they want the item removed would impede the city's ability to conduct business.

"Further, the granting of relief to the Plaintiff under the allegations of the Plaintiff's Complaint would render both the public meetings provision of the FOIA (A.C.A. § 25-19-106) and the criminal penalty provision (A.C.A. § 25-19-106) unconstitutionally vague, violating the Fifth and Fourteenth Amendments to the U.S. Constitution and Article 2, § 8 of the Arkansas Constitution."

The response asks that the lawsuit be dismissed against defendants Gard, Lau, Lorenz, City Director George Catsavis, Vice Mayor Kevin Settle and the city of Fort Smith.
The city previously lost a 2002 lawsuit by Fort Smith resident David Harris that was appealed to the Arkansas Supreme Court regarding then-City Administrator Bill Harding's polling of city directors regarding their votes on a property purchase.

One positive quarter does not a turnaround make, but Van Buren-based USA Truck posted second quarter net income of $722,000, better than the $1.398 million loss in the same quarter of 2013 and the first quarter in the black in three years.

Per share earnings of 7 cents also beat the consensus estimate of a 2-cent per share loss. Total revenue for the quarter was $153.298 million, better than the consensus estimate of $152.32 million.

For the first half of 2014 the trucking company has lost $867,000, better than the $3.872 million loss posted during the same period of 2013. USA Truck posted a net loss of $9.11 million in 2013. While an improvement compared to the net loss of $17.671 million in 2012, it marked the fifth consecutive year of losses for the trucking company.

“We posted our first quarter of positive net income in three years,” President and CEO John Simone said in the earnings report. “While continuing the work of implementing our turnaround plan, the progress we are making is evident in virtually every area of our business. ... The Company’s improved second-quarter performance was driven by a 12.1% increase in base revenue, while operating expenses net of fuel surcharge collections increased only 7.4%, yielding a 410-basis point improvement in operating margin – a testament to the multiple revenue growth, operational and cost-efficiency initiatives we have implemented.”

Investors liked the report. The thinly-traded USA Truck shares (NASDAQ: USAK) were up more than 4.5% in early morning trading after closing Wednesday at $18.58. During the past 52 weeks the share price ranged from a $19.57 high to a $5.28 low.

The second quarter numbers would have been even better, but the company had a $2.2 million charge – 13 cents per share – to cover legal costs primarily related to the effort to defend against a hostile takeover attempt by Knight Transportation. Knight and USA Truck agreed to a “standstill” arrangement in early February, which effectively ended the takeover attempt.

Another boost to income and revenue is the continued growth of Strategic Capacity Solutions (SCS), USA Truck’s brokerage and logistics division. Revenue in the division for the quarter was $41.762 million, up over the $30.028 million in the 2013 quarter. Operating income in the division was $5.991 million in the quarter, more than double the $2.163 million in the 2013 quarter.

For the first half of 2014, SCS operating income was $11.069 million, up 233.9% compared to the $3.315 million in the same period of 2013.

“This performance was made possible by crisp execution within this highly efficient service against the backdrop of a market characterized by strengthening demand and tight capacity,” Simone said in the statement. “Our SCS segment accounted for over one-third of our consolidated base revenue during the quarter, substantially strengthening and diversifying our integrated business model.”

Despite the better numbers, the company continues to struggle in a few key areas. The operating ratio for the first half of the year was 104.8%, up from 104.4% in the same period of 2013. The ratio indicates that company lost 4.8 cents for each dollar in revenue. Also, the empty mile factor during the first half of 2014 rose to 12.3% from 11.4% in the same period of 2013. The average number of seated tractors fell from 2,115 in the first half of 2013 to 2,040 in the 2014 period. The number of parked trucks rose from 4.9% in the first half of 2013 to 8% in the first half of 2014.

However, tighter capacity and increased demand across the U.S. freight industry allowed the company to command higher rates. The base revenue per loaded mile was $1.72 in the first half of 2014, better than $1.635 million in the same period of 2013.

“Although fixed costs were pressured during the quarter by elevated employee medical benefit plan costs, we achieved improvements in critical areas such as insurance and claims, fuel and maintenance costs. We also took steps we believe will increase our seated truck count, which remains one of management’s top priorities as the availability of qualified drivers continues to be problematic across the truckload industry,” Simone explained in the report.

A study released by the National Association of Manufacturers (NAM) on Thursday said the Environmental Protection Agency’s (EPA) new ozone standards could cause Arkansas to lose more than 10,000 jobs, pay more than $240 million in environmental compliance costs, and shut down most of the state’s coal-fired electric generation.

“Manufacturing in the United States is making a comeback, and we’re reducing emissions at the same time, but tightening the current ozone standard to near unachievable levels would serve as a self-inflicted wound to the U.S. economy at the worst possible time,” NAM President and CEO Jay Timmons said. “This rule would undermine our work to expand manufacturing in the United States, making it almost impossible to increase operations, create new jobs or keep pace internationally.”

Altogether, according to the study conducted by NERA Economics Consulting, NAM said the EPA’s controversial plan to cut carbon dioxide emissions could reduce the nation’s GDP by $270 billion per year and carry a compliance price tag of $2.2 trillion from 2017 to 2040, increasing energy costs and placing millions of jobs at risk.

At this price, the NAM study estimates that it would be the most expensive regulation the U.S. government has ever issued, Timmons said. “Ozone standards set at this level could break us,” he said.

At the direction of President Obama, the EPA released its Clean Power Plan on June 2, cutting so-called “dirty air” emissions 30% by 2030 from 2005 levels. At the time, critics said it would essentially end Arkansas’ and the nation’s reliance on coal-fired electricity generation.
www.thecitywire.com/node/33325

Under the new guidelines, Arkansas regulators and stakeholders will also have an option to develop and submit a workable plan beyond the earlier announced June 2016 deadline. On June 25, nearly 20 stakeholder groups and state regulators from the Arkansas Department of Environmental Quality and the Arkansas Public Service Commission met to discuss how to implement the new greenhouse gas standards in Arkansas.

DOING THE IMPOSSIBLE
At that meeting, Chuck Barlow, vice president of environmental policy and strategy for New Orleans-based Entergy Corp., called the new EPA rules “another level of hell.”

NAM officials said their 144-page study was “the most rigorous examination” of EPA ozone regulations to date. The nation’s largest manufacturing association called on the Obama Administration to delay implementation of the more stringent ozone standards, or keep today’s carbon emission rules at the current level of 75 parts per billion.

“We are rapidly approaching a point where we are requiring manufacturers to do the impossible. The new EPA (rules) should be entirely off the table,” said NAM Vice President of Energy and Resources Policy Ross Eisenberg. “We hope the EPA takes us up on this offer. They need to take the time to get this right.”

Here are some additional highlights of the study finding that ozone standard from 75 parts per billion (ppb) to 60 ppb could:
• Reduce U.S. GDP by $270 billion per year and $3.4 trillion from 2017 to 2040;

• Result in 2.9 million fewer job equivalents per year on average through 2040;

• Cost the average U.S. household $1,570 per year in the form of lost consumption; and

• Increase natural gas and electricity costs for manufacturers and households across the country.

CONSUMER PRICE HIKES
In Arkansas, NAM officials said that new ozone regulations could cost Arkansas hundreds of millions of dollars to reduce emissions to federally required levels. For example, the new EPA rules would push up residential electricity prices by 15% and natural gas prices by 32%, the report said.

NAM officials said the EPA has identified only 38% of the controls needed to meet the standard. The remaining 62% of reductions would have to be met with unknown controls that the EPA has not yet identified but which would likely have to include early shutdowns of existing facilities, equipment and vehicles.

Eisenberg said NAM has sent the study to EPA officials and asked for a meeting to discuss the details and methodization of the new report. The new NAM report is another high-profile study that critics of the new EPA standards can use to put political pressure on the EPA to delay implementing the new stricter greenhouse gas rules.

The U.S. Chamber of Commerce has issued a 71-page report saying the EPA’s plans to regulate carbon dioxide emissions from power plants will cost America’s economy more than $50 billion a year between now and 2030.

Randy Zook, President and CEO of the Arkansas State Chamber of Commerce/Associated Industries of Arkansas, said he hopes his membership forcefully voices its opposition to the EPA rules.

“Today’s study should serve as a wake-up call to job creators in Arkansas and across the nation,” Zook said. “The report clearly demonstrates the exorbitant costs that come with a more rigid ozone standard, and the severe impact that such a revision would have on our state economic outlook. These costs will make it almost impossible for Arkansas manufacturers and businesses of all stripes to create new jobs, or even keep pace with international competitors.”

ARKANSAS RULE DEVELOPMENT
In Arkansas, The PSC and ADEQ have been tasked by Gov. Mike Beebe to oversee the process of developing new rules to meet the EPA mandate in Arkansas. ADEQ is in the process of preparing the necessary paperwork to seek the assistance of a meeting facilitator for future stakeholder meetings. Also, the public comment period on the EPA docket began June 18 and must be received by federal regulators on or before Oct. 16, 2014.

Meanwhile, EPA Administrator Gina McCarthy has been criss-crossing the nation to get public input on the prosed Clean Power Plan. This week, the EPA held four public hearings in Washington D.C., Atlanta, Denver and Pittsburgh, to give interested parties an opportunity to comment on the proposed rule.

EPA predicts that when the proposed plan is fully implemented in 2030, carbon emissions from these sources will be 30% below 2005 levels. Obama administration officials say the proposal will protect public health, move the United States toward a cleaner environment and fight climate change while supplying Americans with reliable and affordable power.

To date, the EPA has received around 300,000 comments on the proposal, and anticipates hearing oral comments from about 1,600 people.

Retailers from Wal-Mart to local boutiques expect a busy weekend as Arkansas shoppers take advantage of the state-sponsored tax holidays beginning Aug. 2 and running through Aug. 3. 

Shoppers may purchase clothing up to $100 per item, unlimited school and art supplies and up to $50 in clothing accessories and pay no state or local sales tax on those purchases, a savings of nearly 10% in Northwest Arkansas and the Fort Smith metropolitan area.

Electronics purchases are not part of the tax free program but Wal-Mart announced Thursday (July 31) that it will unveil price roll-backs in-store and online for top electronics and other college dorm room essentials. Wal-Mart said its rollbacks and special buys are timed to the start of sales tax holidays in select states and at a time that data shows a spike in customers shopping online for back-to-school items. 

“The combination of families stocking up on school supplies, college students shopping for electronics and select state sales tax holidays makes this one of the busiest times of the year for us,” said Steve Bratspies, executive vice president, general merchandise for Walmart U.S. “We know that customers are searching for ways to save as they prepare for the fall. That’s why we’re making it easier for them to get back to class for less with great deals available on Walmart.com and in our stores.”

Sales tax holidays are a big part of the back-to-school season for many families in Arkansas – for some, it can mean enough savings to purchase extra an shirt or a backpack, Wal-Mart noted.

“We’re prepared for this busy time with the items that matter most this season like supplies and back-to-school clothing,” the retailer said in a statement.

Wal-Mart said the products in biggest demand and the most well-stocked include: 
• 24-count Crayola Crayons;
• Elmer’s School Glue; 
• binders; and
• notebooks and notebook paper. 

The retailer said big trends for 2014 include items featuring characters from Disney’s Frozen and Captain America: The Winter Soldier. 

It’s not the just large retailers who can benefit from tax-free weekends, according to the National Federation of Independent Businesses. Retailers of all sizes should leverage these one-day or weekend shopping events with sales, coupons and more, according to Andy Ellen a spokesman for the organization.

"When the tax holiday is offered, it drives a lot of foot traffic, both for the items that are tax-free that weekend as well as taxable items," Ellen said. 

Sixteen states are offing tax holidays in 2014, according to Diane L. Yetter, president of Chicago tax-consultancy firm YETTER. 

Not everyone is excited about the sales tax holiday as some groups cite a loss of state revenue.

“The primary reason Arkansas began offering the tax-free weekend was because consumers living near border states were believed to be shopping in those states that offered the tax free savings. Now retailers in state don’t lose out to neighboring Oklahoma, Texas and Missouri,” said Kathy Deck, director for the Center for Economic Research at the University of Arkansas.

She said the state-sponsored holiday does promote walk-in traffic for retailers and it helps to coordinate when consumers shop for the covered back-to-school items given they have the means to purchase them during the stated weekend.

Deck said it is not clear how much tax revenue the state looses annually from the one weekend of tax free incentive. But when she factors in that Arkansas consumers are shopping more in-state, Deck said that is money that at one time was flowing elsewhere.

“Two things are likely, consumers might spend a little more than they normally would because they are getting more for their money without paying taxes. There is also the fact that they are shopping during a promotional period which could mean they buy items that had not planned,” Deck said.

Economist Liz Malm of the Tax Foundation, notes that sales tax holidays do not promote economic growth or significantly increase consumer purchases. She sad the evidence shows that they simply shift the timing of purchases. Some retailers raise prices during the holiday, reducing consumer savings.

The Arkansas Department of Finance shows the complete rules for the state-sponsored tax-free purchases on its website.

Superior Industries disappointed Wall Street Thursday (July 31) as it missed earnings predictions for the second quarter and indicated a softer back half of 2014. The Van Nuys, Calif.,-based wheel maker posted $5.039 million in net income, down 20% from the prior year profits of $6.324 million. 

On a per-share basis Superior earned 18 cents, missing Wall Street’s 23-cent consensus which was also the reported earnings per share in the second quarter of last year. 

Revenue for the second quarter of 2014 was unchanged when compared with the second quarter of 2013, totaling $199 million for both periods. Superior saw a 1% increase in the number of shipments in the quarter, and production totaled 3 million wheels.

Gross profit decreased to $15.7 million versus $16.2 million for the same period a year ago. The gross profit decline reflects a modestly higher increase in factory costs when compared to the small increase in unit sales volume.

“Results for the quarter helped to clarify many of the challenges Superior faces,” said new CEO Don Stebbins, who joined Superior in May. “Despite a small increase over last year, we continue to experience relative unit volume softness. Our results highlight the need to reduce factory costs to improve margins and also to bolster our longer-term competitive position. Accordingly, we announced yesterday the closing of our Rogers, Arkansas facility by the end of this year, as we implement steps toward addressing our more immediate challenges.”

Stebbins and Superior management said the closure will take place before the end of the year and is timed accordingly with Ford’s production shift in its popular F-Series trucks, the largest contract at Superior.

He said Ford will be shuttering production in the back half of the year as the model is revamped for 2015. As Ford truck wheels represent the largest volume for Superior, Stebbins warned that softer company sales are expected for the back half of this year.

SHIFTING PRODUCTION
“Our decision to close the plant in Rogers was based on the fact that older location —Circa 1989 — is highly unlikely to reach necessary competitiveness even with additional investment,” Stebbins said during the companies earnings call Thursday afternoon.

He said a production transition is already under way to the company’s other facilities. 

“In the meantime, we expect to run the Rogers plant hard to build up some added supplies before the we turn off the lights sometime later this year. The new plant in Mexico will be finished by the end of the year and some of the newest equipment in Rogers will be moved to the new facility. We will have a light startup in early 2015 and expect that plant to run an average 60% capacity during the full year. All of the other Superior plants will be running at 100% during that time to keep pace with demand,” Stebbins said during the call.

He reiterated that the closure of the Rogers plant is expected to generate about $15 million in year-over-year labor cost savings, resulting for the workforce reduction of 500 workers.

Superior expects to incur severance costs of approximately $2 to $2.5 million in the back half of this year. Asset related charges in connection with the closing have yet to be determined. As of June 29 the net book value of fixed assets at the Rogers facility was approximately $21.9 million, the company said.

The Rogers plant has a total capacity to produce about 1.75 million wheels a year, the newer plants in Mexico can turn out 2.25 million, with less labor costs. 

In the recent quarter, Superior noted that a $2.7 million loss related to operational cost performance, most of that was attributed to the Rogers location from high scrap rates and low production levels. 

Superior noted that Fayetteville efficiencies improved on lower scrap rates, benefits of 
upgraded equipment plus more manageable volumes and mix. The company’s  Mexican production is running smoothly overall, but demand volatility has pressured cost performance, the company said.

Alloy costs — a byproduct of aluminum — rose in the quarter to the tune of $1.7 million which can not be passed along to customers, the company said.

AUTO PRODUCTION
Stebbins said the overall auto production across North America is robust up 4% in the second quarter, the second strongest for the industry since 2002. During the quarter Superior shipments increased 1%, behind capacity restraints which left the company unable to bid on new customer contracts.

Ford is Superior’s largest customer and this automaker saw a 2.8% dip in production levels compared to the year-ago quarter. The decline was in Ford passenger cars down 48,000 units, while light trucks rose by 28,000 units. Superior said the majority of its business with Ford is for the light trucks which includes SUVs. Superior’s shipments to Ford rose 4.6% from the year-ago period.

General Motors produced 6.3% more vehicles in the quarter, light trucks rose by 50,000 units, while passenger car production was flat. Superior’s shipments to GM increased 4% from a year ago.

Chrysler reported an 11.2% gain in auto production in the quarter, led by 112,000 more Dodge Trucks and Jeep SUVs. Despite the added production, Superior shipments to Chrysler were down 13.5% from the prior-year period. The loss in production on the Dodge Challenger, Dodge Journey and Caravan were offset by more units sold for Town & Country and Durango models.

A new flurry of polling shows Republicans with a solid victory in one Congressional District, advantages in two other districts, and an air-tight race for the remaining district in Central Arkansas. U.S. Rep. Steve Womack, R-Rogers, is safe in the 3rd District, and GOP candidate Bruce Westerman has a lead in the 4th District race against Democrat candidate James Lee Witt.

The latest round of Talk Business & Politics-Hendrix College polling centered on four Congressional District level surveys that provide a first glimpse at this fall’s congressional match-ups.

“Rather than obsess on the specific numbers in these head-to-head races at this juncture of the election cycle, I’d encourage readers to view the big takeaways and some cross tab data analysis to interpret these results,” said Roby Brock, Talk Business & Politics Editor-in-Chief. “With little advertising in these match-ups so far and with the suffocation of messaging from the Senate and Governor races, the Congressional campaigns have taken a back-seat this cycle. I expect campaign spending in the final 90+ days to impact the current state of these races.”

The four polls that construct these Congressional District results were conducted July 22-25 in all four Congressional districts. The surveys used a combination of IVR technology and live caller connections. The margins of error fluctuate for each district, but range from +/-4.5% to +/-4.9%.

The Congressional head-to-head questions were the first question asked in our survey after determining voter participation in the November general election from a list of likely Arkansas voters in each Congressional District. Only voters who answered in the affirmative for participation were allowed to complete the poll.

Congressional District 1
Among 450 respondents, with 20% being cell phone users, the First District survey has a margin of error of +/- 4.6%.

Q: In the race for Congress in your congressional district, the candidates are Republican Congressman Rick Crawford, Democrat Mayor Jackie McPherson, and Libertarian Brian Scott Willhite. If the election for U.S. House were today, which candidate would you support?
47.5% Republican Congressman Rick Crawford
33% Democrat Mayor Jackie McPherson
3% Libertarian Brian Scott Willhite
16.5% Undecided

Takeaways: As an incumbent, Crawford remains poised to capture enough of the undecided votes to win his re-election campaign. But as our polling has suggested over the past two years, there has consistently been a sizable number of voters who remain unfamiliar or undecided with him. The 16.5% undecided suggests Crawford is still not a household name in the district.

Congressional District 2
Among 483 respondents, with 19.5% being cell phone users, the Second District survey has a margin of error of +/- 4.5%.

Q: In the race for Congress in your congressional district, the candidates are Democrat Patrick Henry Hays, Republican French Hill, and Libertarian Debbie Standiford. If the election for U.S. House were today, which candidate would you support?
43% Democrat Patrick Henry Hays
44% Republican French Hill
3% Libertarian Debbie Standiford
10% Undecided

Takeaways: The Second Congressional District, which has elected Democrat Vic Snyder and Republican Tim Griffin in recent years, appears to be a toss-up at this point. Throw any number of variables in this race — age, gender, ethnicity, geography, the margin of error — any way you slice and dice it, this race is competitive.

Congressional District 3
Among 408 respondents, with 17% being cell phone users, the Third District survey has a margin of error of +/- 4.9%.

Q: In the race for Congress in your congressional district, the candidates are Libertarian Grant Brand and Republican Congressman Steve Womack. If the election for U.S. House were today, which candidate would you support?
20% Libertarian Grant Brand
57% Republican Congressman Steve Womack
23% Undecided

Takeaways: The Third District remains solidly Republican and without a Democratic challenger, Cong. Steve Womack is on cruise control to re-election. The larger undecided block may reflect dissatisfaction with no Democratic choice in the race.

Congressional District 4
Among 439 respondents, with 15% being cell phone users, the Fourth District survey has a margin of error of +/- 4.7%.

Q: In the race for Congress in your congressional district, the candidates are Republican Representative Bruce Westerman, Democrat James Lee Witt, and Libertarian Ken Hamilton. If the election for U.S. House were today, which candidate would you support?
48% Republican Representative Bruce Westerman
34% Democrat James Lee Witt
3% Libertarian Ken Hamilton
15% Undecided

Takeaways: There appears to be a Republican advantage in this race, which has really yet to heat up. Westerman won his GOP primary, but it was his opponent who did the major advertising. Neither Westerman nor Witt have spent major money on paid media for the general. With four TV media markets in the Fourth, spending by the candidates or third party groups could cement or alter these results quickly, as we saw in the GOP primary.

ANALYSIS
Dr. Jay Barth, professor of political science at Hendrix College, offered the following analysis of the results.

Second Congressional District
At this stage, the battle for the open seat in central Arkansas’s Second Congressional District appears to be the one to watch moving into the stretch run of campaign 2014. Former North Little Rock mayor Pat Hays has been well-served by his years of visibility in that office in the sole media market in the district and is in a statistical tie with Little Rock banker French Hill, coming off an impressive GOP primary victory in May.

Patterns we have seen in other races emerge in this race. Both are in exceedingly strong shape with their fellow partisans, but Hill leads comfortably (53% to 30%) with independents. A significant gender gap expresses itself as Hill leads 50% to 40% with men and Hays leads 46% to 40% with women. Finally, typical racial patterns emerge with Hill leading among whites and Hays leading strongly among African-Americans (although Hays’s support among African-Americans – at 80% to 7% – is particularly solid for a Democratic candidate this cycle, as will be noted below).

It should be pointed out that our Second District sample is flawed in that it undersamples African-Americans from Pulaski County, bringing down the overall African-American percentage to 9%, and oversamples whites from Pulaski County. Pulaski County voters compose 60% of our sample in contrast to approximately 55% of the 2012 vote. Democrats hope to best their 2012 turnout in the Democratic-swinging county, but 60% of the district vote would be exceptional.

However, when the sample was re-weighted to take geographical and racial patterns into account, the race shifted only marginally, to a 44% to 44% tie indicating the closeness of the race and the importance of turnout in determining the eventual winner.

Cross tabs of the Pulaski and non-Pulaski County votes show Hays with a 47% to 43% lead in both men’s home county, but Hill leading 47% to 38% in the suburban counties surrounding it. At present, Hays is underperforming for a Democrat in Pulaski County and Hill is underperforming for a Republican in the counties outside of the state’s largest county. The question: Do those patterns hold, keeping the race exceedingly close, or does either Hill or Hays make a move in a race that may well be overshadowed by the U.S. Senate and gubernatorial races? Editor’s note: Dr. Barth’s household has contributed financially to both the Hill and Hays campaigns.

Fourth Congressional District
A different pattern emerges in the race for the other open seat. Coming off a victory in the GOP primary, State Representative Bruce Westerman is in strong shape at this point against former FEMA Director James Lee Witt in the Fourth Congressional District.

Democratic nominee Witt has to solve several electoral problems if he is to close the gap with Westerman in the coming months. First, Westerman is destroying the Democratic nominee among independent voters, leading 57% to 23%. Witt will portray himself, like Hays in the Second District, as a nonpartisan problem solver but the fact that Independents are now behaving much like Republican partisans in the Fourth District makes that a tough challenge.

Second, at this stage, Witt appears to face some challenges with African-American voters. One in five of the district’s African-American voters express support for Westerman and, just as problematically, fully one in four African-American voters are undecided in the race suggesting that the Witt campaign must engage in more effective outreach among African-Americans in the coming weeks. As the race proceeds, Witt will likely attempt to attach himself to President Bill Clinton – still exceedingly popular with the state’s African-American voters. Bringing African-Americans fully into the Democratic fold in this race is particularly important in a district with a significant African-American electorate.

At this stage, a big advantage for Westerman. The key question: Can he hold off the advertising barrage coming from a well-funded Witt in a massive district where multiple media markets means that advertising can shift voting patterns quickly?

The Incumbents
First District Congressman Rick Crawford has a solid 47.5% to 33% lead over Heber Springs Mayor Jackie McPherson driven heavily by his 61% to 14% lead with independent voters in our sample. Crawford’s continued low name recognition for a veteran congressman, shown in previous surveys, is holding down his lead and keeping a chunk of voters (16.5%) in the undecided camp. This presents some opening for McPherson if he were able to pull together funding to reach across the large, mostly rural district with its multiple media markets. Like Witt, McPherson will also have to bring African-American voters, historically strong Democratic voters, back into the fold (at this stage, one in five express support for Congressman Crawford) as well as closing the chasm with independent voters.

Finally, one thing is completely clear: Third Congressional District incumbent Steve Womack appears on his way to a strong re-election. Lacking a Democratic opponent, Womack is left to battle Libertarian Grant Brand. Womack shows a solid majority in his race for a third term.

Van Buren's eligibility for the Rural Development loans appeared safe following passage of a new federal Farm Bill earlier this year, but the community was dealt a blow Thursday (July 31) after it learned the city was no longer considered a rural community eligible for the loans.

According to Karen Phillips, housing and development director at the Crawford-Sebastian Community Development Council, the local administrators of the USDA Rural Development Loan program began looking at eligibility requirements after passage of the Farm Bill and noted that Van Buren was no longer eligible in part based upon its proximity to Fort Smith, meaning the community will officially lose eligibility status on Oct. 1.

Vickie Davis, an agent with Sagely & Edwards Realtors in Fort Smith, told The City Wire that eligibility requirements state that a community with no more than 35,000 residents must not be considered part contiguous part of a metropolitan statistical area. If the Arkansas River did not divide the two cities, Van Buren would be a contiguous neighbor of Fort Smith and is included in the MSA.

A meeting held at the USDA's office on Brooken Hill in Fort Smith today, featuring USDA State Director Lawrence McCullough, confirmed the loss of the loans for the community of 23,000.

"I guess everyone was confused about what the purpose (of the meeting) was," Philips said. "It was just to discuss Van Buren's rural eligibility, so that gave us at least a glimmer of hope thinking that they were wanting to hear comments from us, facts and all of the details about Van Buren and why it should be eligible. In the end, the said it was a done deal and Van Buren would no longer be eligible."

The Rural Development Loan, Philips said, allows low income residents to purchase a home with no money down and lower mortgage insurance premiums than traditional residential financing options.

"Their income limits went into the $70,000 range before the guaranteed loan part (would kick in), which meant you could get less mortgage insurance and no down payment requirements. It was a good option to get affordable payments and purchase without a large amount of money saved up first. It was a good option for everyone, not just low income families."

Executive Director Jackie Krutsch of the Van Buren Chamber of Commerce said the real hurt will likely not necessarily be middle class families, but those who would not be able to realize the dream of homeownership without the Rural Development Loan. She cited per capita income figures to show that Crawford County falls below other counties and the state in salary. In 2011, figures she cited from the U.S. Bureau of Economic Analysis listed Crawford County has having a per capita average income of $27,830. Statewide, the figure stood at $34,032 while just across the river Sebastian County's per capita average annual income was $38,513.

"You can see the difference between Sebastian and Crawford Counties is pretty significant," she said.

While the change in status for Van Buren could hurt homebuyers, Krutsch noted the impact it would have on mortgage originators, as well.

"Our home mortgage originators are very concerned about how this could impact their business and individual clients wanting to purchase a home," she said.

Developers are also likely to be impacted, Krutsch said, noting that neighborhoods throughout the community her chamber serves have focused on serving customers depending on Rural Development loans.

"Even if they (purchasers) don't have the down payment, a family of four could get into a house in the price range of $130,000 to $140,000. In Van Buren, there have been a lot of housing developments in the last 15 years in the price range for Rural Development guidelines. In the right price range, essentially. When you limit that funding mechanism, then you've taken those people out of the market."

Davis said the most likely scenario as far as impact is concerned is more buyers will buy homes outside of the Van Buren city limits in order to qualify, likely spurring growth in other communities.

"I think it's just going to shift people from Van Buren to outlying communities elsewhere in Crawford County. It's just going to put a lot of people out of buying a home in Van Buren because a down payment can get expensive. So I think it will be quite a bit of a hit (to the local economy)," Davis said.

For buyers in Van Buren looking to get in before the Oct. 1 change in eligibility, Philips said it was not too late, but potential buyers had to act fast with their mortgage lenders.

"The requirement to have an application to USDA is by Sept. 30. I definitely would not wait that long, though. They need to act as soon as possible to turn in an application and then talk to their local lender specifically about contract deadlines," she said, adding that other programs within USDA, such as the "Guaranteed Loan," may have other requirements that should be verified with a lender.

The port of Van Buren is expanding with the addition of a new 15,000-square-foot bulk storage building to be built by Five Rivers Distribution, according to Five Rivers Distribution President Marty Shell.

Shell, an operator at the port in Van Buren and the operator of the port of Fort Smith, made the announcement during Thursday's (July 31) Fort Smith Port Authority meeting.

"There's no AEDC (Arkansas Economic Development Commission) money, there's no grants, there's nothing out there. It just comes straight out of our pocket. But we see a heavy, heavy need for bulk storage in this area," he said.

The news that Five Rivers was constructing its own bulk storage building came at the same meeting where the port authority was to discuss plans for a new bulk storage building at the Port of Fort Smith. The new building is expected to cost between $700,000 and $900,000, Fort Smith Deputy City Administrator Jeff Dingman said Thursday, adding that the port authority had applied for a $200,000 grant from the Arkansas Waterways Commission in order to defray some costs of a new building.

Competing for the grant from the AWC are the ports at Little Rock, Pine Bluff, Osceola, and West Memphis, with Dingman noting that the AWC was unlikely to give a single port the entire grant but would likely split it between the five ports that had made the applications.

The largest part of the funding for the bulk storage facility is to come from a loan originating with the Arkansas Economic Development Commission, Dingman said, adding that if the port comes up short on the $200,000 grant from the AWC it could instead scrap plans for the new building in favor of using the money on other projects.

"There are still a lot of parts of that that are still as unknown today as the last time we talked about it, really. I think if we end up with whatever we end up and it's not enough to do our building project, then like we talked last time, we can request authorization to use it for some other type of improvement at the facility. But whatever we get, we can use. We just don't know if we can use it for … if it will be enough to make our building project work or not."

Shell said Fort Smith was the only port to request for a new building, with other ports requesting to use the so far unknown amount of grant money for river dredging and maintenance issues.

Even though the port authority is still moving forward with its plans for a bulk storage building, Shell said building an additional storage facility at the Van Buren port was a necessity for customers who need space now and cannot wait until the port authority finds out sometime in November whether it received the $200,000 grant necessary to begin construction.

"We still support, will still continue on, would still like to see the Port of Fort Smith develop a bulk storage warehouse over there, as well. But we have customers just telling us that they need something quickly and we figured we could do it privately faster than we could publicly, so we've decided to build a 15,000 square foot (facility),” Shell said.

Dirt work on the site is almost complete, Shell said, adding that Five Rivers would soon accept construction bids. He would not disclose the cost to construct the facility and added that AEDC and other funding options were not being used since the facility would not add additional jobs to the economy in the near term.

A public meeting will be held on the grant application made by the Fort Smith Port Authority, Dingman said, with Shell adding that Sen. Jake Files, R-Fort Smith, would attend to advocate for Fort Smith to receive its share of the funding. Legislation Files sponsored in the Arkansas General Assembly made the grant money available through the AWC.

The positive news keeps coming for Springdale, the city in the middle of the growing Northwest Arkansas region. Wal-Mart announced Friday (Aug. 1) plans to build a new Sam’s Club located near Arvest Ball Park at 58th Street facing U.S. 412. 

"We are delighted to return to Springdale. Aside from the jobs, community giving that comes along with a new club opening is big. At Sam's we have a saying ‘Happy to help,’ and we are truly glad to bring Springdale a beautiful new Sam's Club," said Kurt Hess, regional marketing manager for Sam's Club.

This announcement comes two weeks before a new supercenter opens at Elm Springs Road and Interstate 49 and just a month after a new Neighborhood Market was announced by the retail giant near the new Don Tyson interchange and I-49. 

“This is big for several reasons,” said Mayor Doug Sprouse. “There is the added tax revenue as a Sam’s Club would be a big gain for any city, but equally important is the new development near Arvest Ballpark for which we have waited patiently for some time.”

He said the timing of the Sam’s Club opening in 2016 will also coincide with the city’s 56th Street widening project to four lanes with a median from the Don Tyson Expressway beyond U.S. 412.

Sprouse said it’s hard to gauge the financial impact, but for Springdale to have one time had the only Sam’s Club in the region and lose it, this announcement is especially sweet. Sam’s Club, unable to secure a liquor license in Springdale in 2006, pulled out of the city and built a new club along I-49 – then I-540 – near the Arkansas 112 junction in northwest Fayetteville. A second club was completed in Bentonville in 2008 leaping over Springdale.

Spouse said the landscape has changed and the local population has grown since Sam’s left Springdale. Officials with the Springdale Chamber of Commerce also praised the news.

"There are great days ahead for Springdale. This has turned out to be a summer of good news for the city from downtown development, retail expansion and added jobs," said Bill Rogers, communications director for the Springdale Chamber of Commerce.

The typical Sam’s Club measures approximately 136,000 square feet, and includes a fresh bakery, tire and battery center, a café and a fuel station. The Springdale Sam’s Club store is expected to employ about 175 workers, a combination of part-time, full-time hourly and salary management.

Bentonville-based Sam’s Club will need no introduction in Springdale but local consumers might not realize that the if warehouse club stood on its own outside the umbrella of parent company Wal-Mart it would be the eighth largest retailer in the U.S. with $56 billion in annual revenue. That’s more sales than the Gap, J.C. Penney and Kohl’s rang up combined last year.

The retailer celebrated its 30th birthday in April 2013 and employs more than 110,000 workers in its 640 clubs. The clubs average more than $80 million in sales annually with a membership of some 47 million and growing.

Sam’s Club restructured its in-store management teams earlier this year eliminating 2,300 jobs, a move the retailer said was necessary to streamline operating costs in a challenging economic environment.

Sam’s plans to open 20 new clubs this year, including remodeled and expanded stores working to fill in markets where the retailer already has strong brand recognition. Last year Sam’s opened 12 clubs.

The race for Arkansas governor made a stop in Fort Smith Friday (Aug. 1) with Republican Asa Hutchinson and Democrat Mike Ross each addressing a crowd of 325 at the Fort Smith Regional Chamber of Commerce's First Friday event.

Each candidate was given 15 minutes to make their case to Fort Smith business leaders, government officials and the public, followed by a five minute question and answer session. With the toss of a coin, it was determined that Hutchinson would address the crowd first.

The former congressman and Fort Smith native laid out a series of six issues he said were important to not only Fort Smith, but to the state and would be priorities should he be elected the state's next governor in November.

First on the list was working to ensure the the 188th Wing's new unmanned flying mission was a success and he said getting on a new national governor's council created in 2008 could help keep the unit's mission active and stable for many years to come.

"We've got to make it work, we've got to make it expand and I think there's a great opportunity there and I want to be supportive," he said. "In fact, as governor, I will seek a seat on the council of governors that helps guide Department of Defense policy when it comes to the National Guard. There's 10 governors that are appointed to that slot."

Hutchinson said technology education at the secondary level was a priority of his, saying that by introducing coding courses at the high school level students would have marketable skills as they enter high education or the workforce following graduation. He said the total cost of implementing such educational standards would be about $500,000 to train educators to teach the courses and to develop curriculum. He said a change in the state law would be necessary to offer the courses for either math or science credit.

Manufacturing was also a focus of Hutchinson's remarks, with proposals made to remove what he has said repeatedly throughout the campaign are burdensome regulatory processes in Arkansas. Doing so would not only keep manufacturers in Arkansas, but would allow the state to recruit additional industry to the state.

One such industry is the firearms industry, with Hutchinson touting his past work with the National Rifle Association and saying that he was already pitching Arkansas as a possible home for manufacturers who may be looking to relocate as a result of anti-gun legislation in their respective home states.

He said all of the effort in bringing jobs to the state — and being what he called "the jobs governor"— would be remiss without a reduction in taxes, making Arkansas competitive with surrounding states that have lower or no income taxes such as Oklahoma and Texas.

"I presented a tax plan that would lower the individual state income tax rate in this state and it is a job creation issue," he said. "It is a competitive issue."

Hutchinson said as governor, he would push the state to convert more vehicles to compressed natural gas because it would create a "cleaner environment" and "lower cost fuel."

"I don't believe that mandates from the government, but I do believe in leadership and so I pledge that as governor that I will accelerate conversion of state vehicles to CNG options to that we can provide leadership and a better example for people in this state. I think that is a good opportunity for the River Valley, as well, and we will capitalize on that."

When Ross took the stage, the former congressman and state senator talked about his small business background and time in government, noting that when he left Congress in 2012 it was because he was "fed up with Washington," but not necessarily public service.

"The last thing we need in state government is the kind of partisan bickering and disfunction that we see in Washington today. In this state, we're too small for that and there's a lot more that unites us than divides us. So let me be clear — I am a conservative, pro-business, pro-gun Arkansas Democrat but I am not running to be governor of the Democratic Party. And I am not running to be governor of the Republican Party. I am fed up with the extremes of both parties. I am running to be governor of all the people of this great state and I pledge to work with everyone who will work with me to make this state an even better place to live, to work and to raise a family."

Ross took a shot at Hutchinson's plan to be the jobs governor, saying that it requires investment in education.

"Asa said he wants to be the jobs governor, but I want to be the education governor because I think that's how you become the jobs governor. I think that is how you create economic opportunities in this state."

He said often various communities in the state lose out on jobs and business expansions because the towns and cities simply do not have an educated workforce to service businesses.

Ross said Arkansas has been "49th (in education rankings) all my life," noting that West Virginia is currently the only state in the country ranked worse in education. In order to combat that, he pitched his Pre-K program for all Arkansas children whose parents want to place them in the program versus the current placement of children in households at 200% of poverty level. Ross pointed to Oklahoma's program that has about 75% of the state's eligible children enrolled as a sign Pre-K for all students can be accomplished in a conservative state.

Ross also noted that career and workforce education would be a priority as governor, adding that out of 100 9th graders, only an average of 20 graduate college. But making shifts in Pre-K and workforce education will not be about short-term results, he said it would be about a generational shift in Arkansas while the workforce education was more geared at the short-term solution.

"What I'm talking about is a generational thing. The quality of the Pre-K program in Arkansas is exceptional – we're ranked 11th in the country. The issue is access. And what I'm talking about doing here with Pre-K is something we're going to see the results from in 18 years, but it's past time for us to start on it."

Ross also discussed his plan to reduce taxes, saying that a third of Arkansas taxpayers are in the top tax bracket in the state. But he said the plan would be as revenues increase in the state versus an immediate tax break should he win the governor's race later this year, citing the tax cuts implemented by Kansas Gov. Sam Brownback when he took office.

"Just look at Kansas and Gov. (Sam) Brownback. A $350 million deficit this year. This is not Washington. Money does not grow on trees. We must have a balanced budget. We don't print money here. I understand that and for 10 years, I helped balance the state budget as a member of the Arkansas State Senate."

Before wrapping up, Ross got in one last shot at outside interest groups spending upward of $3 million against his candidacy in the state on television.

"They're trying to convince you that I'm something that I'm not. Let me tell you the truth. And you can look it up. Each of the 12 years I served in Congress, I was named one of the most independent members of Congress by National Journal. Each of the 12 years I served, I earned an A plus rating from the National Rifle Association. I received awards from the U.S. Chamber of Commerce and by the National Association of Manufacturers. And I could go on and on. And by the way, in case Asa missed this, the only time Nancy Pelosi had an opponent (in her race for Speaker of the House), I gave the nominating speech for her opponent with her sitting on the front row.”

There is a strong link between economic opportunity and education, and even though Northwest Arkansas has several top-rated schools in the state and some of the nation’s largest corporations there is still much work to be done, according to Dr. Evelyn Jorgenson, president of NorthWest Arkansas Community College.

Jorgenson and Michael Poore, superintendent of Bentonville Schools, were the featured speakers at Friday’s (Aug. 1) Business Matters breakfast, a monthly business forum of the Bentonville-Bella Vista Chamber of Commerce.

Just 54.3% of Arkansas high school graduates head to college or trade schools, and while Jorgensen said that rate is slowly improving it’s still 14% below the national average.

“We have plenty of work to do especially when you look at the gaps between open job positions in this region compared to the number of students graduating in certain fields,” she said.

In a workforce report compiled by the Northwest Arkansas Council earlier this year, surveys of local employers indicated there were 1,000 open positions in information technology (IT) with companies located in the two-county area. Roughly 120 local students graduated in that field last year, Jorgenson shared. In the culinary arts the report found 167 open positions, against 19 graduates last year. Jobs in the skilled trades number about 1,000 openings among local manufacturers, with just 87 students graduating with those credentials last year.

“In many cases students can get a one-year certificate and go right to work. They can go on and finish an associate’s or bachelor’s degree if they want while they are gainfully employed,” Jorgenson said. 

She and Poore agreed that students have a plethora of options, but it’s up to the community to help get that message across. NWACC works in tandem with several high schools in the region on concurrent enrollment programs that allow a high school student to take college level courses at the same they are in high school.

“Our valedictorian this past year was a young lady (Amanda Dias-Jayasinghe) that graduated with two associate’s degrees from NWACC concurrently as she finished high school in Bentonville. She tutored adult education students at NWACC as well. The amazing part of this story is that she came to Bentonville as a first grader from Sri Lanka and didn’t speak English and she’s headed to Harvard this fall,” Poore said.

He said the entire community helped to raise this little girl who was following her dreams to Harvard.

Jorgenson said “community” is the junior college’s middle name and it’s the community that NWACC listens to and seeks to serve, which includes the full gamut of education options from GED completion to professional education credits, in addition to transferrable course work and 23 certificate programs.

ON THE MOVE
The community college plans to move its culinary arts program from Center for NonProfits in Rogers to downtown Bentonville’s newly created market district. Jorgenson said the culinary arts and hospitality program has outgrown its space at the Center for NonProfits and looks forward to anchoring a new culinary arts venue to be located in a former Tyson Foods plant now under renovation.

She said the board recently authorized administrators to negotiate for space in the former Tyson Foods plant at 802. S.E. Eighth St. near downtown Bentonville. The move to the larger venue will allow the college to increase enrollment from 185 to 260 students. The Tyson plant was tapped for redevelopment late last year providing a large venue that features culinary arts, fresh food vendors and overflow from the farmer’s market.

NWACC also plans to move its adult education from the Center for NonProfits in Rogers to the college’s main campus in Bentonville. Jorgenson said the move will take place next year and space has been earmarked in the Shewmaker Center for Workforce Technologies.

“It’s important for these students to feel like they are part of the college and getting them on the main campus could be helpful to those students considering college in the future,” she said.

BENTONVILLE GROWTH
Poore said the much anticipated Bentonville West High School will open in 2016 with between 1,400 and 1,500 students in grades nine and 10 to start. With the district adding about 500 students a year, he expects the school population will rise to 2,500 within a few years.

The district plans to release the new boundary plan in October, but said in the first few years students may be given a choice to attend to the new school.

By 2017 he said the district will need another elementary school, and there are two areas of concern, heavy growth in the southwest side of the district and very long bus rides for small children living in Northwest Bella Vista.

“We have several small children that must catch the bus between 6 a.m. and 6:15 a.m. each morning in Bella Vista. This is not a good situation that has to be considered,” Poore said. 

He said the district already has the funds to construct the elementary school, so a tax hike is not needed.

Bentonville High School has an enrollment of 4,300, making it the largest in the state. District wide there are 15,000 students. He said there is a reason the school district is growing and it’s linked to top test scores, a No. 1 ranking in the country for athletic accomplishments and a full array of performing arts accomplishments.

“Our good schools are essential for local companies looking to recruit and retain top talent. A strong educational system is a cornerstone that helps supports longterm economic growth,” Poore said.

Four Fort Smith city directors were dismissed from a lawsuit alleging violations of the Arkansas Freedom of Information Act according to a Thursday (July 31) court filing.

City Directors George Catsavis, Keith Lau, Mike Lorenz and Vice Mayor Kevin Settle were all released from the lawsuit that alleges the FOIA violation after Lorenz had called City Clerk Sherri Gard requesting two items be removed from meeting agendas. Gard then contacted all members of the Board to determine if there was adequate support to remove the items. A city ordinance passed in the 1970s allows removal of items from a meeting agenda if four directors notify the city clerk of their desire to have the item removed.

Attorney Joey McCutchen, representing Fort Smith resident Jack Swink, said Saturday (Aug. 2) that the removal of the four city directors was due to the elected officials' lack of understanding of the Arkansas FOIA law prior to the polling having been conducted by Gard.

“(A)fter some formal and informal discovery, while directors should have knowledge of the FOIA, it's pretty clear that the administration clearly had the knowledge and that it's the city administration who's responsible for this. That was one of the big reasons."

McCutchen said he was not excusing the actions of the Board members, specifically noting that City Directors André Good, Philip Merry and Pam Weber — while not originally named as defendants in the lawsuit — also took part in the action leading the lawsuit.

"The fairness argument is out there also," McCutchen said. "Though I think Philip Merry and Pam Weber have tried to be so transparent on this particular issue, I think they were involved in the process, also. Everyone was involved in the process and I think the directors were put in a bad situation. In my opinion, that's why we have a city administrator to advise and make sure we're doing business in public and openly. In my personal opinion, those folks were trying to be transparent. They were trying to bring things to a vote in public with something that was put on the agenda in public. They were trying to vote again in public."

Merry had originally attempted on June 3 to get votes on the hiring of an auditor to review legal billings for the city after allegations of improper billing by the Daily and and Woods Law Firm — whose law practice serves as the contracted legal services provider for the city — were leveled by attorney and blogger Matt Campbell, who has since formed a law practice with McCutchen and attorney William Buckley.

Merry had also attempted to get a vote regarding the formation of a committee to review whether the city should continue paying outside counsel for legal representation or hire in-house attorneys to represent the city. A study session was subsequently held with the Board regarding the allegations, which City Attorney Jerry Canfield has said are without merit.

Merry's resolutions, seconded by Weber, were placed on meeting agendas and twice were removed through the city ordinance at the original requests of Lorenz.

McCutchen added that this lawsuit, which still names Gard and the city of Fort Smith as defendants, is just the latest case in which the city has illegally polled city directors. He cited a case brought in 2002 by Fort Smith resident David Harris which the city ultimately lost on appeal before the Arkansas Supreme Court in 2004, as well as another FOIA lawsuit that was brought by McCutchen that led to a 2012 Arkansas Supreme Court opinion that said while the city was not necessarily in violation of FOIA regarding a series of one-on-one meetings between the city administrator and city directors, a circuit court's attempts to rule part of the Arkansas FOIA unconstitutional was in error.

"I think those are two major reasons (for continuing the lawsuit without the city directors as co-defendants). The city bears ultimate responsibility and the common denominator is the city administrator. I think the city of Fort Smith should be extremely sensitive to this issue of polling in private and it's pretty clear to me that they're not and they continue to go down the same path in a different way."

In a response to McCutchen and Swink's latest lawsuit, City Attorney Jerry Canfield said the city is within its rights to poll city directors and had asked for the dismissal of city directors granted Thursday. City Director Keith Lau, who had hired his own attorney with the Board ultimately voting to pay any fees associated with his legal defense, said he was pleased with the dismissal.

"Honestly, I'm happy and relieved," he said. "What I said before was I thought, and so did my attorney (Michael Redd), I was not liable if found in violation. If Joey (McCutchen) and Jack (Swink) want to decide if that procedure is a violation of the Arkansas FOIA, more power to them. We'll let the courts decide. I'm just happy to be out of it personally."

Farming is still big business in Arkansas despite being overshadowed by headlines from corporate giants Wal-Mart, Tyson Foods and some of the nation’s largest trucking and logistics companies in the country.

Agriculture accounted for $17 billion of valued added to the Arkansas economy in 2011. That’s 17 cents of every $1 linked to the sum of employee compensation, income and indirect business taxes, according to an economic report from the University of Arkansas in 2013.

There are more than 259,200 jobs statewide supported by agriculture, that’s one in six jobs in Arkansas, creating almost $10 billion in labor income comprising 15% of the state’s total. The aggregate of the agriculture sector’s share of the state economy in Arkansas is 2.3 times greater than for the U.S. as whole.

Some Arkansas banks have taken notice of more demand from the state’s agriculture sector. Arvest Bank recently announced is it ranked No. 26 in the American Bankers Association Top 100 Farm Lenders in the U.S. for the first quarter of 2014. Northwest Arkansas-based Arvest Bank held about $503.68 million in total outstanding agriculture loans to end the first quarter of 2014, according to Steve Griffin, executive loan manager for the Fort Smith region of Arvest Bank.

The bank notes that it’s also expanding the agriculture loan products through the Federal Agriculture Mortgage Corporation, commonly known as Farmer Mac. These products provide several  tools that help farmers/ranchers mitigate risks that have plagued the industry for the past few decades. 

Arvest said the low interest loans help farmers free up funds than can be used to counteract business risks such as drought expenses, falling crop prices and other weather-related disasters.

“We’re currently in a situation similar to the farming boom of the 1970’s – which was followed by the farming crisis of the 1980’s. The best way a farmer/rancher can reduce their financial risk is to take advantage of the current low interest rates,” Griffin said.

While the average U.S. farmer or rancher is in good financial shape, many in the industry see potential pitfalls that could cause problems similar to what the industry experienced in the 1980s. Land prices are increasing while grain and cattle prices are becoming volatile. Prices often depend on global factors including the Chinese economy, trade agreements between Japan and Australia, exchange rates, weather, inflation and domestic demand. 

A recent report from Wells Fargo economist notes that the U.S. farm sector made a solid comeback in 2013. Overcoming three consecutive years of slow growth, the industry’s output surged 16.4%, while overall real GDP increased just 1.9%. Arkansas ranked ninth in terms agricultural share of state GDP at 3.8% in 2013, according to the Wells Fargo report.

The report also summarizes 2014 as another good year for the nation’s farm economy, noting that repeating the 2013 performance could be tough given drought in large parts of California and unpredictable weather in the Midwest and South.

Local lenders also mentioned weather as a threat to 2014 profits for some farmers.

“We have a wonderful bunch of farmers in our Brinkley bank that have been with us for many years. We had a terrible rain that dumped up to 10.5 inches about a month ago that has caused major problems with some of the crops,” said Gary Head, president of Signature Bank.

He said some farmers may see lower yields as a result of the recent rain deluge.

“Our loan demand is steady there and we are prepared to work with our farmers through a potentially rough year,” Head said.

Signature Bank has grown its farmland loans to 1.71% of total loans, up from 1.51% a year ago. That totals about $6.5 million, up from $5.8 million in 2013. Other agriculture loans held by Signature Bank total about $6.4 million, up from $5.15 million in 2013, according to bank’s filings with the Federal Deposit Insurance Corp.

While the first five months of 2014 have shown generally sluggish sales tax receipts, June's figures released by the city of Fort Smith on Aug. 1 show a marked improvement. But the city's finance director told city directors in an e-mail that the reason behind the increase is not yet known.

The city's sales taxes (1% for streets and 1% combined for water and sewer projects and fire and parks and recreation) collected $3.691 million in the June report, 12% higher than budgeted.

Overall for the first six months of the year, revenue from the city's sales tax collections are 1.49% above last year's totals for the same period and 0.92% below this year's projected budget.

The total in the June report represents a overall drop in all sales tax receipts of 0.44% below budget. (Because the state of Arkansas has a two-month delay in reporting collections back to the cities, the city of Fort Smith — for budgeting purposes — has historically reflected the collections on a one-month delay. Which is to say, the tax collections remitted to cities in June are from taxes collected in April and transferred by merchants to the state in May.)

Collections so far in the 2014 reporting period of the city's sales taxes were $20.054 million, up from collections of $19.759 million in the same period of 2013. The same period in 2012 saw $20.026 million with $19.273 million in 2011. The city sales tax for fire and parks did not begin collecting revenues until November 2012.

Total collections of the Fort Smith city sales taxes in 2013 was $38.938. Collections in 2012 totaled $39.21 million, just ahead of the $38.684 million collected in 2011. The 2011 collections were 3.9% above the 2010 revenues of $37.23 million.

Fort Smith's share of the countywide 1% sales tax in the June report was $1.428 million, up 13.94% from June 2013 when the city's share of the county sales tax revenues was $1.253 million. The figure was also 13.41% above revenue estimates of $1.259 million.

The countywide tax generated $15.353 million for Fort Smith during 2013, up 0.49% compared to 2012 and down 1.99% compared to budget forecasts. The countywide tax generated $15.279 million in 2012, just ahead of the $15.15 million in 2011, but lower than the peak collection of $16.61 million in 2008.

The countywide tax collection is critical because the revenue is a little more than 40% of the city’s general budget of roughly $42 million. A majority of the general fund budget supports fire, police and other critical city functions. The dip in collections compared to budget estimates has resulted in city officials seeking 4% budget cuts from all departments.

In her email to the Board of Directors, Finance Director Kara Bushkuhl that she believed the spike in sales tax revenues for the month to not necessarily be because more shoppers were hitting the mall or big box stores.

"It appears that this is some kind of adjustment but I have no information over what period it would cover or for what reason.  Other cities are experiencing varied fluctuations like Fort Smith is seeing," she wrote.

Bushkuhl added that her office had reviewed information in an attempt to narrow which sector may have been responsible for the spike, but again said it could not be determined.

"When reviewing the NAICS (North American Industry Classification System) code information for the first 6 months, there does not appear to be any large fluctuations in the four largest categories that comprise 39% of the total city sales tax paid.  The four largest categories are: general merchandise, full service restaurants, building materials, and grocery."

In addition to county and city sales taxes being above target, Bushkuhl said franchise fees were up, as well. But she noted that could change depending on the weather.

"The franchise fees for the 1st two quarters are above last year and above budget expectations.  Electric is up 10% and natural gas is up about 12% over last year.  This may not hold for the 3rd quarter if we continue to see cooler temperatures in August and September as we have in July."

PREVIOUS ANNUAL COLLECTION INFO
Fort Smith 2% sales tax collection (1% for streets; 1% for water/sewer bonds)
2013: $38.937 million
2012: $39.210 million
2011: $38.683 million
2010: $37.229 million
2009: $37.554 million
2008: $41.226 million
2007: $37.858 million
2006: $36.840 million

Fort Smith portion of 1% countywide sales tax
2013: $15.353 million
2012: $15.279 million
2011: $15.15 million
2010: $14.89 million
2009: $15.04 million
2008: $16.61 million
2007: $15.15 million
2006: $14.71 million

GOP gubernatorial candidate Asa Hutchinson laid out a plan to fight Environmental Protection Agency (EPA) rules that are being debated over so-called “dirty coal” power plants.

The EPA has asked states for comments on a proposal made by President Obama called the Clean Power Plan, which mandates a 30% reduction in carbon dioxide emissions from existing power plants by 2030 from 2005 levels, mainly targeting the nation’s fleet of more than 600 coal-fired plants that currently supply the lion’s share of the nation’s electricity needs.

Arkansas energy leaders with the state’s largest electric utilities have said the requirement could force closure of existing power plants and would raise rates for consumers. A manufacturers’ study released last week also indicated that Arkansas could lose 10,000 jobs as a result of the EPA rules. Renewable energy supporters say the EPA rules could benefit Arkansas by providing cleaner air and creating new alternative energy jobs.

Hutchinson said, if elected, he would seek the support of the Attorney General and the State Legislature to oppose the EPA rules. While a comment period is still underway until Oct. 16, 2014, Hutchinson said Arkansas should join a lawsuit that 12 states have started in opposition to the federal government rules.

“I’ve seen this train moving before, you better move early,” he said. “I want to send a signal — nationally and in Arkansas — that this is a position I will take.”

Hutchinson said he expects the current 12-state case challenging the rules’ authority to make its way to the U.S. Supreme Court. He also indicated that he thought the costs to join the existing lawsuit would be minimal and that Arkansas’ addition to the litigation would provide “more strength in numbers,” which he said would make the legal challenge stronger.

While he has visited with GOP Attorney General nominee Leslie Rutledge on the issue, as well as Republican leadership in the Arkansas House and Senate, Hutchinson said he has yet to speak to Attorney General Dustin McDaniel (D) or Democratic AG nominee Nate Steel. He said he planned to visit with them regarding the lawsuit. Rutledge has said many times this year that she would use the Attorney General’s office to push back on “federal overreach.”

McDaniel met on Monday (Aug. 4) with Avi Garbow, General Counsel of the U.S. Environmental Protection Agency, to discuss the EPA rule. McDaniel also outlined issues in a letter to the EPA.

“I’m very appreciative that General Counsel Garbow made time to meet with me today to discuss how the proposed rule may affect Arkansas,” McDaniel said. “The meeting was productive and a step in the right direction.”

Steel, who announced in June that he had “serious concerns” over the EPA’s new emission guidelines, said he would exercise caution before jumping into litigation over the matter. But he didn’t rule joining the 12-state lawsuit out either.

“While I stand ready to take any action necessary on this issue and protect Arkansas ratepayers, I will not be the kind of Attorney General who sues first and asks questions later. I look forward to learning more about Attorney General McDaniel’s meeting with General Counsel Garbow and how we can best protect Arkansas’s consumers,” Steel said.

Today, coal-fired power represents 44.5% of Arkansas’ annual net electric generation. Natural gas-fired generation is second at 23.2% and nuclear energy is next at 19.4%. Renewable energy generates about 6.4% of the state’s power needs and hydroelectric fills 5.4% of the state’s electric capacity. Petroleum-fired fuel, once a staple for heating oil, now generates less than one percent of the state’s power (0.6%).

Nationwide, coal has been the largest source of electricity generation in the United States for more than 60 years. However, its annual share of total net generation declined from nearly 50% in 2007 to 39% in 2013 as some power producers switched to more competitively priced natural gas.

Arkansas’ home sales market shows no signs of slowing down, with the number of homes sold during the first half of the year up more than 5% and the combined value of the homes sold up more than 2%. Home sales in June were up almost 9% in Arkansas four largest markets.

Also, the year-to-date 2014 numbers are up compared against what was a healthy Arkansas real estate market in 2013.

Home sales in Arkansas’ four largest metro areas during the first half of 2014 totaled 10,268, up 5.16% compared to the same period in 2013. According to The City Wire’s Arkansas Home Sales Report. The average price per home sold in the four markets was $162,291, down 2.79% compared to the same period in 2013, and the total value of $1.666 billion in the four markets was up 2.23%.

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

For the first six months of the year, only the Northwest Arkansas area had a decline (down 2.39%) in the number of homes sold compared to 2013.

JUNE NUMBERS
June home sales totaled 2,087, up 8.75% in the four markets compared to June 2013, and up 15.24% compared to June 2012. The average price per home in the four markets during June was $174,172, down 1.39% compared to June 2013, but up 3.59% compared to June 2012.

There were 959 homes sold in central Arkansas, up 6.67% compared to June 2013, and up 11.9% compared to June 2012.

June home sales totaled 728 in Northwest Arkansas, up 4.9% compared to June 2013, and up 17.42% compared to June 2012.

Jonesboro area home sales totaled 205, up 19.88% compared to June 2013 and up 20.75% compared to June 2012.

In the Fort Smith area, home sales totaled 195, up 25.81% compared to June 2013, and up 10.8% compared to June 2012.

The value of the sales during June were down 1.76% in central Arkansas, up 11% in Northwest Arkansas, up 22.2% in the Jonesboro area, and up 38.29% in the Fort Smith region.

THE REGIONAL PICTURE: 2014
Central Arkansas — Home sales
Jan.-June 2014: 4,856
Jan.-June 2013: 4,599
Jan.-June 2012: 4,240

Fort Smith area — Home sales
Jan.-June 2014: 945
Jan.-June 2013: 790
Jan.-June 2012: 803

Jonesboro area — Home sales
Jan.-June 2014: 1,072
Jan.-June 2013: 897
Jan.-June 2012: 810

Northwest Arkansas — Home sales
Jan.-June 2014: 3,395
Jan.-June 2013: 3,478
Jan.-June 2012: 2,973

The top five counties in terms of Jan.-June 2014 home sales:
Pulaski — 2,261, up compared to 2,144 in 2013
Benton — 2,166, down compared to 2,176 in 2013
Washington — 1,229, down compared to 1,302 in 2013
Craighead — 844, up compared to 709 in 2013
Saline — 794, up compared to 711 in 2013

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

MARKET THOUGHTS
Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas, said the June report is typical for this year.

“It looks very much like what we’ve been seeing,” she said. “Overall, the economy is recovering. We’re seeing employment go up in the state. That, of course, brings with it some housing demand.”

In most markets, there has been an increase in the number of units sold and a decline in prices. Deck said three factors have come together to help boost sales – low interest rates, low unemployment and attractive pricing have all brought buyers to the closing table.

Another factor, she said, is that people do wonder when interest rates might rise and that is causing people to buy while they still have the increased purchasing power through low rates. While lower sales prices are attracting buyers, Deck said those are also a sign of some hesitance on the part of buyers. The economy may be recovering, but consumers are still cautious.

George Faucette, CEO of the Coldwell Banker franchise in Northwest Arkansas, believes the regional economy there can maintain the pace.

"I believe sales will strengthen only slightly, if any, for the second half of this year; but I do believe the pace of the first half is sustainable. Our agents are continuing to be very busy, and the general economy of Northwest Arkansas is doing very well,” Faucette said.

The numbers for the remainder of 2014 may not be rosy for Crawford County in the Fort Smith metro area. Van Buren was recently notified that its residents will not be eligible for Rural Development loan assistance through the U.S. Department of Agriculture after Oct. 1. According to Karen Phillips, housing and development director at the Crawford-Sebastian Community Development Council, the local administrators of the USDA Rural Development Loan program began looking at eligibility requirements after passage of the Farm Bill and noted that Van Buren was no longer eligible in part based upon its proximity to Fort Smith.

Vickie Davis, an agent Sagely & Edwards Realtors in Fort Smith, said the recent positive numbers in Crawford County may be the result of people anticipating the loss of the loan assistance program.

"A lot of people are trying to get things cleared out before that (Rural Development) stuff happens," Davis said.