Arvest Bank filed a second suit involving unpaid loans made to former bank president H. Dennis Smiley’s family enterprise — HDS Holdings. The civil complaint filed Friday (Aug. 22) in Benton County Circuit Court specifically names Henry Dennis Smiley Sr., the father of former Arvest market president Dennis Smiley Jr., who resigned his position at Arvest Bank n March amid a loan scandal involving 20 banks across the state.

After recently settling claims with 18 of the 20 banks seeking money from Smiley Jr.’s Arvest retirement account, Arvest Bank has now turned its attention to collecting what it’s owed.

The bank asked the court for judgments against Smiley Sr., HDS Holdings and the Henry Dennis Smiley Revocable Trust totaling $386,254.27 from unpaid loans made between December 2009 and February 2014, less a month before Smiley Jr.‘s sudden resignation.

The bank made or extended 8 loans totaling nearly $500,000 to the plaintiffs over a four year period as follows:
• Loan #1267
$38,000 loaned in December 2009 
$40,000 increase in principal amount in October 2012
$20,000 increase in principal amount in February 2014
As of May 20, there was $85,220.98 due with interest accruing at $12.14 per day.

• Loan #3272
$100,000 loaned on Feb. 26, 2010  
As of May 20, there was $101,164.55 due with interest accruing at $13.88 per day.

• Loan #9959
$95,000 was loaned on Jan. 7, 2011
As of May 20, there was $65,572.26 due with interest accruing at $9.92 per day.

• Loan #3716
$50,050 was loaned on Sept. 23, 2011
$73,500 was the new principal owed after a modification of Mar. 7, 2014 
$74,568.84 due with interest accruing at $10.21 per day

• Loan #2597
$100,050 was loaned on Oct. 7, 2011
$59,727.64 due with interest accruing at $8.35 per day.

In the 68-page filing Arvest spells out that these loans were made to HDS Holdings and personally guaranteed by Henry Dennis Smiley Sr., whose signature appears on each each loan document along with H. Dennis Smiley Jr. 

Smiley Sr. has said repeatedly said his name was used and signed without his knowledge and that he was a victim of fraud. Smiley Junior also noted in related cases that his father’s name and signatures may have been used without his knowledge.

Smiley Sr. is a director of the First State Bank of DeQueen and is named in lawsuits filed by Delta Trust Bank, Simmons First, First Security and First National Bank of Fort Smith with regard to loans made to HDS Holdings and guaranteed by Smiley Sr. and the family revocable trust in which he is trustee.

Delta Trust Bank, First Security Bank and First National Bank of Fort Smith, each agreed to settlements with Arvest Bank over the loans owed by Smiley that were backed by Smiley Jr.’s retirement account at Arvest Bank. They can still pursue Smiley Sr., whose name appears as guarantor in multiple loans made to his son.

Other outstanding civil cases in this matter will be heard Sept.18 by Benton County Circuit Judge John Scott. That will include First State Bank of DeQueen and Signature Bank of Arkansas who were not part of the recent Arvest settlement, as well as other cases not yet settled like those recently filed by Arvest against Smiley Jr. and Sr.

Owners and managers of 5 Star Productions in Fort Smith have been successful with a business model using top talent and leading-edge technology. They are pushing that formula with Red 11 Collective, a new business designed to gather a “collective of creative minds” into a “think tank.”

This new operation, located 17½ N. Ninth St. and just a short walk from the 5 Star studios, is expected to be 100% complete by mid September, said Jeremy Dean, creative director with 5 Star and the new Red 11. The investment so far is above $200,000.

According to Dean, Red 11 emerged from an awareness that many of their 5 Star clients wanted to deal with just one company in terms of developing an ad campaign, creating a brand, producing video and other public relations and marketing activities.

“5 Star continues as a video production company, ... but instead of working through an (advertising) agency, we can use this (Red 11),” Dean said.

He was also quick to add that 5 Star will continue to work with ad agencies.

“We don’t want to cut our self off from agency work. We still do a lot of work with agencies. But some of our clients wanted a one-stop shop, so this was sort of a no-brainer on our part to do this,” Dean said.

Part of the 5,000 square feet of renovation to the upstairs of the building first constructed in the 1890s includes a small apartment – with a washer and dryer – for out-of-town clients to stay during work on a campaign or video production. The “creative space” also includes coolers for sodas, water and adult beverages, and a ping pong table.

“You can get a beer and play ping pong while you talk about your marketing plan,” Dean joked.

He’s not joking about the effort by he and 5 Star and Red 11 owner Mike Hart to mold “a design group that will redefine how creative works.” The goal with the space – which is centered by a large meeting room called the “think tank” – is to develop a “younger vibe” to recruit and retain the creative people who typically move away from Fort Smith, Dean said.

Dean and Hart are the only employees of Red 11, with the other eight people who now work in the space being freelancers with their own companies. Having direct access to people skilled in web design, image branding, web maintenance, video production, graphic design and other skills helps not only Red 11, but also the freelancers.

Jake Steininger, owner of Star 7 Creative, is one of the freelancers working in the Red 11 space.

“The best way to think of this is, it’s like the Avengers. No one is telling Captain America what to do, but Captain America chooses to work with the other Avengers,” said Steininger, who sips his hot beverages from a Captain America mug.

Dean said the Red 11 concept is similar to WELD, a creative space in a former warehouse near downtown Dallas that is home to about 70 artists. The artists pay a daily or monthly fee, but have access to a wide range of creative services and support. WELD announced plans to expand to Nashville. WELD officials have not said when the Nashville space will open.

“We’re not stifling their own businesses,” Dean said of the Red 11 participants. “They can even bring their clients up here to meet with them. ... It’s all about bringing the right people together for the job.”

The freelancers at Red 11 also know that project work by 5 Star may at times be a priority. Having the freelancers in one space allows for more communication and fewer surprises with deadlines and other commitments related to key projects.

“There is an economic model behind it,” Dean said.

The economic model did provide some pressure for 5 Star to expand in Northwest Arkansas. The video production company has seven employees and the company has been busy in the past 12 months with work in 28 states and several countries. A “big percentage” of local work is in Northwest Arkansas, Dean said.

“But Mike (Hart) is a hometown, Fort Smith boy. He believes in Fort Smith and he is all about pouring back into the community,” Dean said. “It may economically have made more sense to be in Northwest Arkansas, but he wants to stay in Fort Smith, and especially in downtown Fort Smith.”

U.S. Rep. James Lankford, R-Edmond, brought his campaign for U.S. Senate to Poteau Monday (Aug. 25). The Oklahoma City-area congressman, who is running to replace retiring Muskogee Republican Tom Coburn in the Senate in January, said he was in eastern Oklahoma on a listening tour.

"(It is to) spend time just to listen to people and hear some of the stories of what's happening, what people are sensing as issues with the federal government right now because that's a really big issue to me. It's tough to represent people (who you have not met) because you have to hear the stories. So for me, it's an opportunity to hear the stories and know exactly what's happening.”

Poteau, the county seat of LeFlore County, has the third worst unemployment rate in all of Oklahoma at 6.9% as of June 2014, the most recent month data was available from the U.S. Bureau of Labor Statistics. It has consistently ranked among the top five counties statewide for unemployment, along with neighboring Sequoyah County which had an unemployment rate of 6.6% in June. Overall, the state unemployment rate is 4.5%.

According to Lankford, bringing jobs back to eastern Oklahoma is not going to be simple or quick.

"(The) first question is why? Why are they leaving the area and you start looking at the triggers. Businesses typically stay where they're thriving, whether it's manufacturing that's happening, where they have great workers and where the regulations are low and the tax rates are low," he said. "And so if there are issues with regulations with the Environmental Protection Agency or regulations that are coming down that are discouraging work or discouraging the start of new businesses, you have to start with that.”

Lankford explained that bringing jobs back to the area was going to require a shift of not only which companies are going to locate in eastern Oklahoma but also the skill sets needed to fill those positions.

"I would tell you there are no quick fixes to some of these areas because there are going to be educational issues that are going to be resolved. There's going to be job training programs that are already there that are already doing a really good job in the area.”

As for short-term solutions, the congressman said there really is not that can be done beyond re-educating and re-training those who are out of work or looking to change careers.

"A government make-ready job may be quick and immediate, but it's not long term and it's not sustainable. So as far as bringing business to the area, it's becomes a prime issue. There is hardly a focus on what programs are already available, as I mentioned already job training. What is out there that can expedite the process to clear some of the issues?”

He continued: "But once jobs leave an area, there's great difficulty to be able to bring them back. So it takes some time to be able to do that. Otherwise, you are literally creating make-work jobs that don't really encourage people because people know exactly what they are. So how can you actually make that transition back in a rapid way? There's no quick fix. That's it. You have to be able to solve the systemic problems and then be able to help turn this around.”

If elected in November to serve out the remainder of Coburn's term, Lankford will also be faced with the challenges along the McClellan-Kerr Arkansas River Navigation System, which extends from the Port of Catoosa, Okla., near Tulsa to the Mississippi River.

Funding has remained a challenge for the system, as maintenance has been pushed back due to funding issues and the risk of increased downtown due to preventable maintenance has increased. Lankford said he would work to bring some local control to communities along the navigation system.

"Several of the things that we fought with with the Corps of Engineers is how can the local governments be involved in the process? … When the Port of Catoosa wants there to be maintenance in the area, they shouldn't have to run through multiple hoops with the Corps of Engineers to allocate funding that they have available to be able to do some of that maintenance. According to Corps specifications, they should be able to do that, as well, so they participate together.”

According to Lankford, a problem happening with increasing frequency is money that is set aside for river and harbor maintenance being used for other purposes.

"The money that's been set aside to do river and harbor maintenance needs to be spent and used. For the last several years, some of that money has been moved to other areas that are not part of the river maintenance, not part of the lock and dam maintenance. That fund can't be used in other areas, it needs to be used for that. … Basically, that tax money that is set aside for that should be used for that, as well.”

Lankford will find out who his Democratic challenger is following Tuesday's (Aug. 26) primary runoff election. Connie Johnson, a Democratic state senator from Oklahoma City, is facing Jim Rogers of Midwest City in the runoff.

A $53 million road construction project will provide another major east/west corridor for traffic in Bentonville and a major step in the project is underway. The plan is for the road to be widened to have two traveling lanes on both sides of the road with some portions having a center turn lane and other portions having a median, said Troy Galloway, community development director in the City of Bentonville.

Eighth Street will be widened from SW I Street to Interstate 49 and a new interchange will be constructed to Eight Street from the I-49. Both components of the expansion are considered one project with multiple partners taking part including the City of Bentonville and Arkansas State Highway and Transportation Department.

Other entities such as Wal-Mart Stores Inc. and NorthWest Arkansas Community College are working closely with the city as the project greatly affects their respective operations. Wal-Mart, in fact, is one of two corporate partners who are helping fund the project.

Mike Churchwell, transportation director for the City of Bentonville, said the $53 million is the estimated turnkey cost on the entire project and that $35 million of federal money was initially earmarked towards that cost. However, “obligation limitation” has lowered that to approximately $31.8 million.

The AHTD will contribute $4 million and the remainder will be split between the city of Bentonville and Wal-Mart Stores. When the project began several years ago, the city partnered with Walmart and Bentonville Plaza with both corporate partners providing $500,000 for the project. The agreement was amended and now Walmart will pay half of what remains after the federal earmarked funds and the state highway department funds with the city paying the other 50%.

PROJECT TIMELINE, IMPACT
Approximately 90 right-of-ways need to be purchased before the project can be bid. At least one property has already closed, Churchwell said. It is expected to take seven to eight months for all the right-of-ways to be purchased. Then another 15-18 months for utility relocation before the project can be bid. The AHTD will bid the interchange and the city will bid the widening project.

Churchwell said with a project of this magnitude it’s not unlikely that interest will come from outside the region. Bidding is expected to take place in late 2016 to early 2017. It’s estimated to be a two-year construction project.

With thousands of employees, vendors and other visitors going to the many Wal-Mart entities located on or near Eighth Street each day, the retail leader has a great interest in the project. Walmart also has an interest in helping improve the community, said Brian Nick, spokesperson. The expansion project will help the overall commerce in the area, he said.

“People will be able to get where they need to go,” he said.

NWACC INVOLVEMENT
NWACC is another entity that is greatly affected by the plans.

“The project will cross college property for both the interchange and the Eighth Street connection to Water Tower Road, and will include the widening of Water Tower Road as well. Water Tower Road will be widened to the west, onto NWACC property,” said Steven Hinds, executive director of public relations and marketing. “NWACC is concerned about the lay down areas of all the projects and whether those projects will use NWACC property during the construction work. Noise is a concern, as well as overall access and safety for our students, staff and faculty.

“The main concern from the Eighth Street project is having limited access to the northern part of the college property and the required planning for signalized or adequate access to/from the southern half of campus at some location between 8th street and Highway 102,” Hinds concluded. “In addition, a significant amount of campus space will be utilized for this and the Water Tower widening project.”

The college is in the midst of changing its Facility Master Plan, including the development of a northern entrance to the campus and maintaining connectivity between the north and south parts of the campus.

“We are also considering our neighbors, Mercy Convenient Care and FM Corporation, in regards to their access and egress needs. We have met with them to discuss these issues,” Hinds said.

A cost for these adjustments cannot be determined until a final plan is developed.

While there are some potential problems to overcome, college officials agreed the project will be an overall benefit.

“Obviously there are some situations that all the parties are seeking to address, such as the potential for the college not to have access to its northernmost property, noise, and loss of property,” Hinds said. “However, the project should improve the traffic flow through Bentonville and it may relieve some of the congestion on Arkansas 102.”

The four largest cities across Northwest Arkansas reported $4.683 million in sales tax revenue this month, up 1.84% from $4.598 million a year ago. Springdale lead the region with a 14.7% gain in year-over-year collections.

The city in the middle with the least retail of the four has recorded double-digit gains in three consecutive months making up for a sluggish start earlier this year. Springdale Mayor Doug Sprouse said he’s not sure what is responsible for the uptick in sales tax, but he’s not complaining. In fact, the city expects to see its sales tax remain higher for the rest of this year with the recent opening of a Walmart Supercenter at Elm Springs Road and Interstate-49.

August sales tax are based on June sales, remitted to the state in July and paid back to the cities the following month creating a two-month lag in the reporting. Fayetteville, Springdale, Rogers and Bentonville each collect a 2% sales tax, half of that goes to debt repayment and 1% goes into the city operating budget. This report reflects the latter.

The new supercenter opened in August, so the partial results should begin to show up around October with a full month of operation reflected in the November report.

Fayetteville also had a strong showing in August with taxes revenue of $1.525 million, up 9.1% from the year-ago period. The higher collections are linked to a record month in  the city’s hospitality tax collections as several large groups visited the city.

Sporting events — softball and baseball — drew roughly 7,000 people to Fayetteville in June as well as thousands who flocked to Wal-Mart’s shareholder meeting – although that happens every year. The Arkansas Pharmacists Association also held their annual meeting at the Chancellor Hotel in June. In total there were 10 groups visiting the city in June, creating an estimated $4.64 million economic impact, according the city’s Advertising and Promotion Commission.

The results in Benton County were not as good with Rogers and Bentonville each reporting less tax revenue than a year ago.

In Rogers the results were close as the city reported $1.212 million in sales tax revenue, down 0.9% from the same month last year. City officials expect collections to remain flat for the balance of this year as they are going up against a strong back half of 2013.

City officials recently told The City Wire their collections to date puts them at more than two-thirds of their annual budget. While there are several retail venues under construction, no major openings are slated for several more months. Twin Peaks and Whataburger are two new restaurants slated to open in Rogers by the year’s end.

In Bentonville sales collections have been up and down this whole year, up one month or two and down the next. August was another down month with revenue of $907,936, down 6.2% from the year-ago period.

Multiple phone messages left with the city’s finance office since Friday (Aug. 22) were not returned. The city did post its June budget online which shows the city’s sale tax revenue collections through June were at 41% of its budgeted amount for the year. The report also showed a $32,000 sales tax rebate deducted in June.

In June, Denise Land, finance director for the city of Bentonville, told The City Wire collections through that point had been on a roller coaster but the city’s budget was fine despite lower collections from a year ago.

Wal-Mart CEO Doug McMillon continues to draft his U.S. management team from around the globe. New Walmart U.S. CEO Greg Foran is an Australian who was managing the retailer’s China operation. Now the retailer is bringing Arvind Mediratta, its top executive in India, to be the senior vice president in the retailer’s U.S. business unit.

Wal-Mart spokeswoman Jo Newbould confirmed with The City Wire on Monday (Aug. 25) that Mediratta was coming to Bentonville. On Tuesday (Aug. 26) Newbould said Mediratta will not report to Foran in his new U.S. assignment, reversing a statement she made on Monday.

Alan Ellstrand, a corporate governance expert from the University of Arkansas, said it’s not unusual for a new CEO to assemble his own team of leaders. In the case of McMillon, who has served on the world stage, Ellstrand said he has no doubt seen some of the best operators in the world, having worked with them closely in recent years. McMillon was CEO of Wal-Mart’s international operations before being picked as the corporate CEO.

Ellstrand said many of Wal-Mart’s international businesses are much further along in small format management, a relatively new concept for Walmart U.S.

Judith McKenna was recently moved to Bentonville from ASDA, the retailer’s British grocery unit. In Bentonville, she is heading up innovation and strategy for small format stores in the U.S. as chief development officer for Walmart U.S.

“Wal-Mart’s new U.S. team is starting to resemble a United Nation’s cast from the world stage; interesting concept but not really surprising given that Wal-Mart is a global retailer today,” Ellstrand said. “This global cast will no doubt have different points of view resulting from their diverse backgrounds.”

Newbould did not say whom Mediratta was replacing or if he is filling a new position.

Mediratta, chief operating officer for Wal-Mart’s Indian unit, has spent nearly three years overseeing Wal-Mart’s Cash and Carry business unit in India. Prior to that he spent nearly five years in the Walmart/Bharti venture. He was recruited to Bharti from YUM! Brands where he served as chief marketing officer for two years in the company’s South Asia division. He also spent time at Whirlpool and Procter & Gamble.

Mediratta has 23 years experience in general management, marketing and sales. Most recently overseeing all the functions of Best Price Modern Wholesale in India, a business he is said to have crafted from the ground up. He was in charge of  buying, merchandising, operations, sales, business development, marketing, membership, finance, logistics, supply chain and store planning.

This is a close match to the job description of Duncan Mac Naughton, chief merchandising and marketing officer for Walmart U.S., who is responsible for all aspects of buying, merchandising, marketing efforts, including customer research and business development, sales strategy, e-commerce marketing, private brands and customer communications, according to Wal-Mart’s corporate biographies.

Mac Naughton’s days at Wal-Mart Stores could be few. Some close watchers of the Wal-Mart corporate world say Mac Naughton may follow Bill Simon, former Walmart U.S. CEO, out the door. Simon was not picked to be Wal-Mart CEO, and Mac Naughton was considered a candidate for the Wal-Mart U.S. CEO job to which Foran was promoted.

Ellstrand said he had no knowledge of corporate moves at Wal-Mart, added that when a high level executive is passed over for promotion, an exit from the company is likely with a few months time.

“Executives that are passed over for promotion can feel they have less influence in the new team chemistry and transitions can be awkward,” Ellstrand said. “High level execs have options they can explore elsewhere, especially when they have spent several years in the executive suite of a major corporation.”

Analysts said Foran and the team he is assembling have their work cut out for them given the lagging same-store sales over six consecutive quarters. He is seen as a merchant operator at heart having worked in retail from the age of 15 where he started as a stocker.

Foran said during the recent earnings call he would be out in the stores, improving customer service while whittling down inventory and growing sales.

The Sebastian County Quorum Court met Monday evening (Aug. 25) at the county courthouse in Greenwood and approved placing an ambulance fee increase on the November ballot.

Residents of nine Sebastian County cities and unincorporated communities currently receive emergency medical and rescue service from the county. Households in the cities — Bonanza, Central City, Greenwood, Hackett, Hartford, Huntington, Lavaca, Mansfield and Midland — currently pay an annual fee of $18 to be included in the service area.

County Judge David Hudson originally approached the Quorum Court on Aug. 20 requesting an ambulance fee increase from $18 to $65 annually, a raise of $47 or 261.11%.

The current $18 fee, collected annually with personal property taxes, has been in place since 1986. It collects $250,000, or about 18.24% of the ambulance service budget of $1.37 million.

Billing of insurance companies and individuals for use of the service during emergency runs makes up $500,000 of the budget, while $620,452 of the ambulance service's budget comes from the general fund.

With 14,000 households in the service area, the increase sought by Hudson would have brought in an additional $658,000. That increase would have meant ambulance fees would bring in a total of $908,000, or 66.26% of the ambulance service's budget. The remainder would have been covered by ambulance run billing.

"The overall Sebastian County budget is constrained to meet various governmental operation needs as we approach the 2015 Budget," Hudson wrote in an Aug. 4 memo to the court. "The increase of General Fund allocation to support Sebastian County EMS that has occurred over the last several years to bring the ambulance service up to current standards with two full time 24 hour paramedic crews is the basis for the fee increase to continue to support this service.”

But at the Aug. 20 regular meeting of the court, justices balked at an increase of 261.11% and instead proposed an increase of $25 for a total of $43 per year. The increase amounts to an increase of 138.89% annually.

On an annual basis, the increase would bring in an additional $350,000, meaning ambulance fees would equal $600,000, or 43.78% of the $1.37 million annual budget.

Justice of the Peace Shawn Looper, whose Huntington district would be impacted by the proposed increase, said he wanted assurances that money from any increases would only be used for the EMS service versus going into the overall general fund.

"I don't want to raise a fee to create a surplus in the general fund to pay for something else. That's my big hang up. If we increase the fee, let's make sure that the fee goes to the ambulance service," he said.

Looper, who has been known to rail against funding of other projects in the general fund like the Ben Geren Golf Course, said he was not necessarily against the fee increase for rural ambulance should it be approved by voters in the affected communities on Nov. 4 so long as the money is set aside for the specific use of the EMS service.

He added that the general fund should always be used for necessity versus want.

"The general fund is to be used for emergency services, the sheriff. I hate to say that we're running a deficit (by providing service like EMS service) because that's what the general fund is for," Looper explained. "And even with the $25 (fee increase), we will still have money coming out of the general fund.”

To drive the point home, Looper introduced an amendment Monday evening that stipulates that all monies raised from the increase must go to a line item in the county's budget called the "Ambulance Improvement Fund" and can only be used for "improvements, expansion or enhancements to the current ambulance service.”

"In no way shall these funds be used to replace the current general fund allocation of $620,000, which is the 2014 budgeted amount," the amendment read. "These funds, however, can be used to prevent any increase above the $620,000 coming from the general fund.”

The amendment passed 9-4, with Justices Danny Aldridge, Don Carter, Jim Medley and Rhonda Royal voting against Looper's amendment.

A brainstorming session was held Monday evening (Aug. 25) for the Fort Smith Board of Directors at the city's sanitation department headquarters, with a wide range of topics receiving attention from the group of seven city directors.

Vice Mayor Kevin Settle raised the topic of possibly adding a corridor from State Highway 45 to Planters Road to Massard Road as the city's next priority, as traffic has increased along the route. He also noted the investment being made by several industrial facilities along the corridor.

"As private businesses make an investment, we have to. I know it's a state road (Highway 45) and there's a lot going on, but we need to start putting that in our priority of the state issues and start getting that project (started). Like we did with the pavilion area and from Phoenix to Zero. We have that and who would have ever thought of five lanes and it's full of traffic all the time.”

The point Settle raised lead into a discussion with City Director Keith Lau regarding truck traffic through the city of Fort Smith and the possibility of extending Kelley Highway to Riverfront Drive as a way to relieve truck traffic through downtown.

"If we're going to make that (downtown) an entertainment venue and ultimately open the door - not saying that that's the case - but to do something and close that truck traffic, or at least get that truck traffic (out of the core of downtown)," Lau said.

City Administrator Ray Gosack said the city already has a route in place that is only supposed to introduce truck traffic to Garrison Avenue from 5th Street to the west.

To Lau's point of possibly extending Kelley to Riverfront and allow a more direct line of traffic to Interstate 540, Gosack said it not only would add nearly 18 miles round trip to a truck's journey and possibly hit a company's bottom line, he said it would also add more risk for drivers of both private automobiles and commercial big rigs.

"They like getting out of the city traffic as fast as they can because that's the most dangerous travel for trucks is being in city traffic, so the more time they spend in city traffic, the most risk they have of being in an accident. So they want to get out of city traffic as fast as they can and for them, those located near downtown is going across the Garrison Avenue bridge.”

As a workaround, Lau proposed the possibility of closing downtown to truck traffic on certain weekend nights between the hours of 8 p.m. and 1 or 2 a.m. in order to cultivate entertainment in the area that may not have previously considered downtown Fort Smith.

Gosack said the city could possibly approach some companies that use the downtown routes about those possibilities.

"But when I hear people complain about truck traffic, I tell them we're the manufacturing capitol of the state. We're going to get trucks and trains. They go together," Gosack said.

"And we don't want to jack with that," Lau responded.

"We want to help existing businesses hear as much as we can," Settle noted.

On the topic of traffic and roadways, Gosack noted that the city was likely to hold a special election in May 2015 regarding renewal of a sales tax to benefit road projects.

He said voters would have the option to vote on renewal of the tax and would also have the option of directing where the money is spent with individual votes on roads, trails, and shared roadways (bike trails on the same streets car traffic moves), among others. Should the tax pass, its use would be restricted to uses that passed along with the tax.

Part of the discussion came about after Lau asked to know whether it was more expensive to build shared roadways or individual trails. Gosack said the shared roadways are more expensive since the bike lanes would have to be built to the same standard as the lanes next to them carrying cars.

During the discussion, it was also revealed that the city is getting closer to a finalized consent decree with the United States Department of Justice regarding Fort Smith's non-compliance with the federal Clean Water Act. Gosack said a study session regarding the details of the decree and the financial models being developed by consultants to comply with the act would likely be presented at that time.

He added that the DoJ had their hands to the city's back pushing them to finalize the plan currently in negotiations. Settle said he would like for representatives of the Justice Department to be present at the meetings, which Gosack said happened when an administrative order was imposed on the city for violation of the Clean Water Act in the 1980s.

"Back I think it was in the early 1980s when the city went under a consent decree for sewer work, they invited people from the regulatory agencies to the Board meeting and they basically told them, 'If you don't approve this, you will go to jail, you will go to jail, you will go to jail,'" Gosack said, pointing to members of the Board as he told the story. "If that's what they're going to do, I don't want that.”

Settle said he'd still like to have someone from the Justice Department on hand to answer questions regarding the consent decree and improvements the city should fund in order to be in compliance with the Clean Water Act.

The City Wire has previously reported that final compliance with the DoJ's administrative order from the 1980s and the latest consent decree could total more than $350 million.

The Northwest Arkansas Regional Airport (XNA) is on track to push past 600,000 annual enplanements, and the Fort Smith Regional Airport may post more than 90,000 enplanements for the first time in seven years.

Arkansas commercial airport trends that began early in 2014 have continued through July, with traffic increases in Northwest Arkansas (XNA) and Fort Smith and enplanement declines in Little Rock.

Enplanement growth should continue through the end of summer and the Labor Day travel time. Airlines for America – previously the Air Transport Association – predicts a 2% year-over-year gain in passengers flying U.S. airlines during the seven-day Labor Day travel period.

“From Wednesday Aug. 27 through Tuesday, Sept. 2, A4A expects 14 million air travelers will take to the skies, up from an estimated 13.8 million in 2013, with the busiest day of the period occurring on Friday, Aug. 29. Airlines are adding seats to the marketplace to accommodate the expected increase in demand,” noted the association report.

XNATRAFFIC
Travelers flying out of XNA during July totaled 63,986, up an impressive 21.7% compared to the 52,577 during July 2013. For the first seven months of 2014, enplanements at XNA total 372,947, up 10.42% compared to the same period in 2013. The January-July 2014 traffic is up 7.61% compared to the same period in 2007, the year XNA reached record enplanements of 598,886.

Based on monthly averages for 2014, XNA is likely to report more than 610,000 enplanements for the year. Enplanements at XNA fell to 540,918 in 2009 after reaching the 2007 high.

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

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

FORT SMITH TRAFFIC
The Fort Smith Regional Airport, served by flights from Atlanta and Dallas-Fort Worth, posted July enplanements of 8,427, up 9.8% compared to July 2013. Enplanements for the first seven months of 2014 total 53,157, up 6.9% compared to the same period in 2013.

For all of 2013, enplanements at the airport totaled 84,520, down 2.46% compared to the same period in 2012. The decline ended three consecutive years of enplanement gains at the airport.

Based on monthly averages, Fort Smith enplanements could reach more than 91,000 in 2014. The last time enplanements were above 100,000 was in 2005, with 102,607. The last year enplanements were above 90,000 was in 2007, with 99,217.

With 30,566 enplanements for the first seven months of 2014, American Airlines accounts for 57.5% of commercial traffic out of Fort Smith. Delta Air Lines had the remaining market share for the first six months of 2014.

American enplanements out of Fort Smith are up 5.5% for the first seven months of 2014 compared to the same period of 2013, and Delta enplanements are up 10.64%.

LITTLE ROCK NUMBERS
Enplanements at the Bill & Hillary Clinton Airport (Little Rock National Airport) totaled 100,034 in July, down 0.39% compared to July 2013. Enplanements for the first seven months of 2014 were 615,054, down 5.28% compared to the same period of 2013.

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

Among the top three carriers in Little Rock, only one has posted enplanement gains between January and July. Southwest, the largest carrier, has seen enplanements decline 14.74% in the first seven months. American, the second largest, has posted a 2.43% gain in the period, while Delta has a 2.1% decline in enplanements during the first seven months of 2014.

Officials with the airport announced Aug. 19 a plan to invest $20.6 million in a concourse renovation project. Work will include a new gate lounge with in-seat recharge for electronic devices, new jet bridges, new arrival-departure monitors and improved wi-fi capabilities.

The majority of Arkansas consumers in the recent Arvest Consumer Sentiment poll (65%) indicated they have not made a major household purchase in the past six months. And while reported savings rates of 9.5% on average are below those in neighboring Oklahoma and Missouri, Arkansas had the highest number (23%) who wanted to save more in the back half of this year.

If that holds true retail and restaurant sales could further stagnate. Major household purchases are defined as as furniture, a television, refrigerator or other large items. In neighboring Oklahoma and Missouri those not making large purchases totaled 57% and 62%, respectively.

Arkansas is a conservative state and that sentiment was also evident in the debt levels reported in the Arvest survey completed in June and July. Mortgage debt was reported by 37% of Arkansas respondents, 30% have auto loans, 11% have student loan debt and one in three survey respondent reported no debt. None of the 392 responses listed a home equity line or credit cards.

Debt levels were in line with those reported by survey respondents in Missouri with 38% having a mortgage, followed by credit card debt at 30% and student loans and home equity debt, both reported at 8%. More than a third of respondents (35%) reported having no debt.

Among Oklahoma respondents, 37% have a mortgage, 32% have auto loans, 31% have credit card debt and 12% have student loans, while 32% reported no debt.

“What is so interesting to see in this set of data are the consistent numbers across the region and within each of the states. We’ve seen that incomes, debt loads, spending and expectations are all about the same across the region. The majority of consumers in Arkansas, Missouri and Oklahoma really do not see their economic situations changing in any significant way over the foreseeable future. That tells us that the economic recovery being reported in other areas of the country has not yet made it to our region’s working families in a measurable way,” said Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas and lead economist for the survey.

The respondents across the board report saving money between 7.4% for Arkansas families earning under $75,000 to 15.2% for families with income over $75,000. This savings mentality is positive long-term, but in the short run it’s a sign of less confidence among consumers who still have concerns about stagnant wage growth and the rising cost of health care and other household expenditures.

Deck said the initial readings indicate that consumers in the region, and especially in Arkansas, are “leery” about overall economic conditions in the near future, although they reported being relatively upbeat about their current financial status.

“The consumer sentiment numbers (released in July) seem consistent with the contradictory nature of other economic data for the state, particularly the declining labor force in the face of improving payroll employment,” she added.

The first data set showed optimistic sentiment across the state was directly linked to educational and economic levels. The higher the education and income, the more optimistic the sentiment. The buying condition index reported in August also found Arkansas more conservative than their neighbors in Oklahoma and Missouri.

Arvest said it modeled the survey after the University of Michigan consumer sentiment poll which is a broad predictor of consumer spending and savings patterns important for lenders and businesses to gauge.

“We are so pleased that the first survey has generated measureable results — an economic snapshot, if you will — of our states that can be used to measure the changes in consumer attitudes and opinions as we move forward,” said Clay Nickel, director of investment strategy with Arvest Asset Management.

Arvest conducts the survey’s twice annually and compiles three separate data sets. This is the third and final report from the June and July surveys. The first two data releases indicated Arkansas respondents were more cautious than those surveyed in Oklahoma and Missouri. These results were part of the Consumer Sentiment Index first released in July by Arvest Bank and in the second installment in August.

The next survey is expected to be completed in November.

Mike Ross took time during the opening of his Northwest Arkansas campaign headquarters in Springdale to blast a new television ad from the Republican Governors Association (RGA) alleging that the 2007 sale of a pharmacy in Prescott owned by Ross and his wife, Holly, for $420,000 was “a sweetheart deal” paid for by a campaign contributor to Ross’ congressional campaigns.

Ross, the Democratic candidate for Arkansas Governor, is in a tight race with Republican Asa Hutchinson.

The 30-second television spot references the 2007 sale of the pharmacy to USA Drug, which became a topic in Ross’ 2010 re-election campaign for Arkansas’ 4th Congressional District. The new ad closes by noting that “some things shouldn’t be for sale,” suggesting that Ross and his wife would not have collected more than $1.2 million – $420,000 for property and around $800,000 for customer list and non-compete agreements – for the sale of the pharmacy and assets if not for his Congressional position. (The ad may be viewed at the end of this report.)

The complete ad voice over noted: “The only real estate appraiser in Prescott put it this way: ‘You can buy half the town for four hundred twenty thousand dollars.’ Yet somehow, Mike Ross sold his Prescott pharmacy to the company of a campaign donor, for just that amount. A sweetheart deal. ‘An eye-popping number.’ A call for a justice department investigation. And before it was done, Ross got another eight hundred thousand from the same buyer. Typical politician Mike Ross. Some things shouldn’t be for sale.”

Ross, who was visibly upset during his remarks in Springdale, said the ad is just as much an attack on his wife as it is on him. He also said the U.S. House of Representatives Committee on Standards of Official Conduct and an investigative report and subsequent editorials by the Arkansas Democrat-Gazette found nothing improper about the transaction. The Democrat-Gazette editorial called an article by proPublica – the publisher of the initial report suggesting Ross improperly benefitted from the deal – a “smear” and the associated fallout an “artificial tempest.”

The ad is the “lowest of all lows” because it attacked his wife for working hard to build a business and then sell it, Ross said.

“That’s an attack on all small business owners in Arkansas. … I’m calling on Asa Hutchinson to apologize to my wife,” Ross said, adding later that he would hope Hutchinson would ask New Jersey Gov. Chris Christie to pull the ad. Christie, who is scheduled to be in Arkansas on Wednesday (Aug. 27) to campaign for Hutchinson, is the vice chair of the RGA.

“I would never attack Asa Hutchinson’s wife … and I received a text from Holly and she said she would never allow me to do that. I think that says a lot about the character of the people in this race,” Ross said.

Jon Thompson, a spokesman for the RGA, issued this response to Ross’ call for an apology and to withdraw the ad: “Congressman Mike Ross is a typical politician who can’t handle the truth. Arkansas voters have the right to know that Ross has a history of making sweetheart deals with campaign donors, including his family pharmacy. No amount of fake outrage from Congressman Ross is going to change the fact that he padded his pockets with the sale of his pharmacy to a campaign donor.”

J.R. Davis, spokesman for the Hutchinson campaign, issued this short statement: "Our campaign did not place the ad, has nothing to do with this ad, and we have no further comment."

NORTHWEST ARKANSAS PUSH
As to opening a campaign office in Springdale, Ross and Rep. Greg Leding, D-Fayetteville, acknowledged that Northwest Arkansas – Benton and Washington counties – is typically considered a Republican stronghold in Arkansas.

Hutchinson was born and raised in Northwest Arkansas. He lived for several years in Fort Smith, but returned to Northwest Arkansas to operate a law firm with his son.

Leding, who introduced Ross to the audience gathered at the office opening, said Democrats in the region “need to end the myth of how we are outnumbered” in the area.

The region has a mixed electoral history in the past two gubernatorial elections. In 2006, when Hutchinson challenged then-Attorney General Mike Beebe in an open race for the Governor’s office, Benton County gave Hutchinson 58.7% of the vote compared to 38.6% for Beebe. However, Washington County was 50.7% for Beebe and 46.4% for Hutchinson.

In 2010, when Gov. Beebe ran for re-election against Little Rock businessman Jim Keet, Beebe captured 52.1% of the vote in Benton County and 60.4% of the vote in Washington County.

“We can absolutely win here in Northwest Arkansas and it is absolutely critical that we do,” Leding told the crowd.

Ross told the crowd he would win in November by continuing to push his message of education and economic development, and by reminding voters that his opponent is out of touch with Arkansans.

“I think Asa Hutchinson has spent too much time in court rooms and board rooms and not enough time in living rooms and break rooms,” Ross said.

The past three years have been a blur for James Smith, majority owner and founder of Springdale-based James+James — a furniture manufacturer now dabbling in retail.

He’s taken a garage-based business that began in 2011, a $40 investment, a skill saw, some wood and stain and is now on track to hit $2 million in sales this year, nearly doubling the $1 million made in 2013.

Using social media posts via Facebook and Pinterest James+James has grown its customer base from Northwest Arkansas to 46 states as well as Canada, Mexico and anywhere there is demand and customer willing to pay for the delivery. Smith said he works closely with CaseStack, a third-party logistics firm in Fayetteville to ship the bulky product out to customers.

RETAIL SHOWROOM
Smith was beaming with enthusiasm Monday (Aug. 25) as he showed off the new physical retail space in heart of Springdale’s Furniture Row district at 4217 S. Thompson St.

“We really wanted to try this close to home, we have a solid customer base in Northwest Arkansas that will give us really good feedback. This is retail space 101 for us,” Smith told The City Wire at Monday’s VIP Sneak Peak event.

The store opens to the public on Friday (Aug. 29) and is staffed by one one full-time and one part-time worker.

“This is also a play on distribution because if this retail-customized showroom store takes off, we plan to build more because they can serve as distribution points for us in major metro cities where we ship a lot of furniture such as Dallas, Chicago and throughout North Carolina,” Smith said. “If this model works and we replicate these stores we hope to be able to ship loads of furniture orders to certain hubs at one time for common fulfillment dates. The customers in that area would then have the option to pick up at the store. Right now the furniture is delivered to their homes, more challenging logistically. The stores will also allow us to interact in person with our customers, a new experience as we have been almost an exclusive online retailer, outside of a few warehouse sales.”

He declined to say how much the company invested in the 2,000 square feet of retail display space.

“It cost a good bit more than we expected,” Smith added. 

Molly Abbey, director of sales and operation at James+James, said she and Smith furnished the retail store with an eclectic mix of lighting, rugs, table runners and other decorative furnishings which they purchased at market.

“We have seen an increase in demand from our customers wanting these somewhat rustic and ‘urban-like’ items that compliment the timeless wood furniture investments handcrafted by James+James,” Abbey said.

The retail store also provides James+James the opportunity to up-sale lighting and home furnishings to go with their custom furniture pieces on a cash and carry basis. She said furnishings purchased online can shipped to the home for free.

CUSTOM AND HANDCRAFTED
Smith spared no expense in weaving technology into the retail showroom. One key feature in the retail store is the customization app where shoppers can personalize their furniture choices using iPads available throughout the store.

“They can also use their smart phone by scanning the QRS code on each furniture piece. This quickly uploads to our site that allows them to see the product, chose stains, adjust sizes, etc.,” Smith said.

Abbey said all the custom furniture pieces— tables, beds and shelving units — are crafted from Arkansas yellow pine milled within about 90 miles of Springdale and shipped to the Springdale manufacturing shop. The company does not do cabinetry or upholstery but works with suppliers for those services when needed.

“We use only virgin wood in our pieces but many times the custom orders call for distressed looks like those found in reclaimed lumber, which our craftsman replicate,” Abbey said.

The most popular item sold is the farm table which range in price from $460 to $1,160 depending on length, from 4 feet to 14 feet.

“A dining room table is far more than a piece of furniture. It is a centerpiece for life. A place where families share memories, strong children are raised, loving couples connect, and laughs are shared,” the company notes on its website.

While the company’s customer base began with the Millennial generation, Abbey said it has expanded to include older generations thanks to social media feeds of satisfied customers who crave custom wood furniture.

CAPITAL AND EXPANSION
Growth and expansion takes capital, but it Smith insists on a pay as you go plan.

“We don’t have outside investors, I use yesterday’s profits to fund today’s expansion efforts that will produce tomorrow’s growth. That’s always been my business model and it has worked for me,” Smith said. “My original partner James Eldridge sold his interest to two silent investors last year who each have a 25% interest in the company.”

Since 2011 the company has grown to 17 employees. All but four are craftsman who make the custom furniture pieces. Abbey said nearly all employees walked in off the street looking for work. The company has expanded its manufacturing site from one unit to four units, now totaling 10,000 square-feet at 460 W. Randall Wobbe Lane in Springdale.

This year the company also purchased a large delivery truck for local and regional deliveries – a step up from renting U-Hauls in the first two full years of business.

Michael Paladino, sotfware developer and founder of Rev Unit in Bentonville, said he’s known Smith since they worked together briefly at Rockfish. 

“When I first met him he was making coffee tables in his garage, and it’s been amazing to see the growth in this business and he’s bootstrapped the entire venture. He’s come a long way from having to fix a flat on the U-haul as he delivered furniture pieces himself each weekend. It’s a great story,” Paladino said as he toured the retail store on Monday.

The state’s economic development community concluded two days of workshops hearing from leaders who called for a workforce overhaul and potential changes to Amendment 82, the state’s superproject amendment.

Grant Tennille, director of the Arkansas Economic Development Commission, delivered his state of the state’s economy address to the Arkansas Economic Developers, a group of chamber leaders, professional economic developers, and site selection consultants on Tuesday at the Little Rock Marriott Hotel.

In an interview prior to his speech, Tennille said the group needed to urgently address better labor development to meet job needs.

“We have heard every speaker talk about the workforce piece. It’s what we lack. And there are a lot of people thinking about, but at this point, it is an emergency,” Tennille said.

“We have the tools we need to compete. We have sites, we have the prime location, we have the transportation infrastructure. We’re better at logistics than almost anybody else in the country. What we don’t have are the people to go to work,” he added.

State Chamber of Commerce officials estimate that as many as 40,000 existing jobs are vacant in Arkansas, while nearly 81,000 Arkansans are currently unemployed.

Tennille said that to turn around the labor deficit the state must redirect resources and partner with business to address skills shortages. However, he said the biggest leap will occur when parents have realistic conversations with their kids about marrying education with job opportunities.

“It comes down to sort of the basic value proposition of life for Arkansans,” he said. “What we don’t need any more of are people graduating with a B.A. in French Literature running around out here looking for that middle-class job. They don’t exist, they’re not going to exist. We’ve got to focus on the skills training because that’s the route to making money.”

State leaders are now assessing workforce education and training in hopes of revamping the system of public schools, two-year colleges and universities to better prepare students for available jobs. Tennille said the state is at the point where private industry should pony up money, take over training in key areas and encourage state and local resources to follow.

“I think they should. Because at some level, as motivated as the state is, there are competing politics and policies that make it difficult for anybody short of a king to be able to say this is the way it’s going to be,” said Tennille. “Business can do that and probably should. I think it would help the state because it would show, ‘Here’s the path. Now, take the state money and invest it along this same path and we’re going to be okay.’”

He cited as an example the need for more welders as the state’s first superproject, Big River Steel, gears up for construction.

“I think a project like Big River Steel could drive it to a head. They’re going to need 500, 600, 700, 800 pipe fitters across the next 18 months. Every pipe fitter worth his salt right now in the region is in south Louisiana. Where are we going to get them? We’re going to have to make them,” Tennille said.

He added that welders could be trained to meet Big River Steel’s needs within 6-12 weeks with the right amount of intensity and focus. He noted that a private welding academy recently launched in Jacksonville to meet industry demand.

“You’re going to see business put money into that thing and it’s going to go,” he said.

SUPERPROJECT AMENDMENT
In a morning session to discuss lessons learned from the Big River Steel Mill, Mississippi County economic developer Clif Chitwood said the state needs to revisit Amendment 82, the superproject amendment.

Chitwood said other states have more flexibility to compete for super projects and Arkansas needs to keep up.

“We have some do’s and don’ts in our constitution that our sister states do not have, which allow them to react much quicker and with a more tailored package of incentives, when those are called for, than we are able to do in Arkansas,” Chitwood said.

Noting that site locators estimate that at least 10 automotive plants will be built in the southern U.S. or Mexico in the next decade, Chitwood said Arkansas’ superproject amendment “can’t raise enough money to actually win an auto manufacturing plant.”

Amendment 82 allows for general obligation bonds of the state to be issued to finance infrastructure or other needs to attract large economic development projects. The bonds may be issued for up to 5% of state general revenues — which would equate to roughly $300 million under a calculation using a $6 billion revenue figure. Any changes to the constitutional amendment would require statewide passage by voters.

“Arkansas ought to have one [auto plant]. They employ 3,500 people. If one went into Central Arkansas it would have an enormous impact on jobs,” said Chitwood. “And I can’t think of a single industry that would help the entire state of Arkansas more than an auto manufacturing plant.”

The Fort Smith Board of Directors Tuesday afternoon (Aug. 26) revisited a Board governance policy that had previously died when no members of the Board made a motion for passage at a June 3 meeting.

City Director Keith Lau started discussion of the governance policy by asking that it be called a set of "best practices" versus a policy. City Director Mike Lorenz had said the word "policy" sounded too much like it would be law, supporting Lau's desire to change the way the proposed document was to be known.

"I don't think any of us were trying to create a law, we were trying to create something we could present to the citizens and say, 'Hey, this is how we operate.' We know how each other are supposed to operate and then let the citizens know how we operate for an increased trust factor."

City Director Philip Merry was quick to remind his fellow Board members that the intent of policy was not to create a document detailing what was allowed and not allowed of city directors but instead was supposed to serve as an educational tool for new Board members.

"Director (Pam) Weber offered up an orientation for a new member and it's gone way beyond that," he said, adding that the Board should be managed by the citizens instead of an list of dos and don'ts.

LEGAL CONVERSATIONS
City Director André Good specifically called out a section of the governance manual that says a Board member must notify the administration and Board if he or she intends to speak with a plaintiff pursuing legal action against the city of Fort Smith.

"If these are the same people that elected us, I find it really difficult to say, 'No, I'm not allowed to talk to you.' I do want to hear their points of view," he said.

City Administrator Ray Gosack said the policy that is again up for consideration does not prohibit a Board member's ability to talk openly with citizens, namely those who may be pursuing litigation against the city.

"What this says is if you do that, you have to disclose it to the rest of the Board," he said. "Since there's litigation involved, so everyone is aware."

Gosack said the purpose of the disclosure was to make the Board aware and said it would be wise for city directors to avoid contact with plaintiffs and attorneys since it could pose a danger to the city's ability to possibly win a case in court.

"Then when the city attorney cross examines you, he's going to have to cross examine you as a hostile witness," he said. "How does that play when the city attorney's having to treat a Board member as a hostile witness?"

Gosack said the proposed policy was also about simplifying and streamlining the message being conveyed by the city.

"I think when you're involved with litigation as an organization, you need to speak with one voice. We don't need eight voices speaking for the organization."

The Board ultimately decided at the request of Lau to remove a section that would have allowed for censures of individual Board members, as well as to rename the document as a "best practices" document. It will come up for a vote on Sept. 2.

PAY RAISES
In other business, the Board reviewed departmental service objectives for 2015, where it was revealed by Gosack that the city appears to be in the early stages of losing employees to the private sector.

The revelation came about after Merry mentioned wanting to provide some sort of raise for city employees, who have only had one raise in about the last four or five years.

Gosack noted during the discussion that it was vital to make sure employees were taken care of due to the risk of losing them to the private sector.

"The first concern is making sure we're fairly compensating employees, but the other concern too is to make sure we don't lose employees to other organizations. We're starting to see some of the early signs of that leakage going on where people are leaving for jobs that pay more. Still in the same career field, but they're going to other places that pay a little better than we do."

Gosack said the city has typically stayed in the mid-range of salaries compared to other regional cities of similar size. But in recent years, Fort Smith has started to drop, he said, necessitating the need to improve salaries.

Among the department to see some of the most turnover is the police department, Gosack said, though other departments are starting to see more leakage as well.

But with the budget process just beginning, it remains to be seen whether the city will be able to afford raises during the next fiscal year, though City Director Kara Bushkuhl said her department would work on the issue.

The Fort Smith Regional Airport Commission approved a contract Tuesday (Aug. 26) with Pro-Tec Fire Services to provide firefighting protection and rescue services at the airport beginning Oct. 1.

The contract, at a cost of $251,000 during its first year and $258,000 during its second year, has three one year options to extend the deal between the commission and the company.

"This agreement provides for Index B ARFF coverage with one firefighter on shift everyday for 18 hours and a supervisor Monday - Friday during normal duty hours, who will act as the airport's primary point of contact and incident commander," airport Executive Director John Parker wrote in a memo to the commission on Aug. 21.

The company would essentially operate as its own body without oversight from the airport commission, Parker said. Should commercial or charter air traffic requiring ARFF coverage land at the airport outside of coverage hours, he said arrangements would be made with the airline or charter service requesting coverage that would begin 15 minutes before landing and would last until 15 minutes following departure.

ARFF (aircraft rescue and fire fighting) has been handled by the 188th Wing during the last 20 or more years at the airport, but with the manned flying mission having left the squadron, the firefighting mission it has hosted during that time will also depart. The last scheduled day of ARFF coverage by the 188th is Sept. 30.

And while Pro-Tec and the commission have come to terms for the contract approved Tuesday, they have yet to enter into a formal contract with the National Guard Bureau out of Washington, D.C., to utilize ARFF equipment in use by the 188th.

Original plans called for the airport commission to host its own firefighting mission using firefighters hired and paid by the commission, but efforts to hold the National Guard Bureau to verbal agreements made earlier in the year at a meeting at Dallas/Fort Worth International Airport involving the Bureau, the airport commission and the Federal Aviation Administration went nowhere for months.

It was only recently that the Bureau and the airport began negotiating terms on the use of equipment and a firehouse on land leased by the 188th from the airport commission. But with the delay, the commission was feeling the pressure of possibly not having the Guard equipment to fall back on, meaning it needed to start meeting with companies who could provide full services — including firefighting equipment — on day one.

Parker said during Tuesday's meeting that contact with the National Guard Bureau has now returned to regularity and a deal for equipment use is being worked out.

As a part of the plan to use National Guard equipment, Parker said a recent FAA inspection of the airport also included the additional inspection of vehicles to be used by Pro-Tec in its firefighting mission for the commission. The inspection of three vehicles showed that two were ready for service, according to FAA regulations.

A contract with the National Guard Bureau should be complete within weeks with a transfer of equipment sometime during the last week of September, Parker said.

The city of Fort Smith will make the leap into the modern age in September with the launch of livestreams – video of event available via the Internet – of Board of Directors meetings.

Russell Gibson, director of Fort Smith's information technology department, said the plan for offering streams of regular meetings has been on his department's radar for the better part of a year, but has taken a back seat to other IT needs, such as the launch of the new My Fort Smith mobile phone app.

The challenge, Gibson said, has been working with infrastructure at the Fort Smith School District's school services center on Jenny Lind Road. City Board meetings are held at the site since the city does not have its own Board meeting room within a city-owned complex.

"You know, unfortunately since we don't have our own city hall or facilities, we have to work with other folks in terms of consuming their services," he explained. "We're fortunate that the school system's been very generous and helpful as far as meeting our technology needs, especially with the television broadcasts and now with the separate (project) we're going to undertake with the stream."

According to Gibson, the school district is allowing the city to use its Internet signal to stream the meetings.

"They are going to give us a drop there and we talked about using their WiFi signal. In talking to the school folks, they're actually going to let us plug right into their network. They've been very generous with their time and resources. And we'll use that infrastructure to get the signal up to the Internet."

For residents who do not subscribe to Cox Communications' cable service, where the Board meetings are broadcast live on the city's community access channel, the new livestream will be viewable on FortSmithAR.gov and on mobile devices.

The service used to broadcast the stream to the public will be UStream, Gibson said, explaining that tests of the streaming service will begin Sept. 2 before the official go-live date of Sept. 16.

Costs for the streaming service will likely be less than $1,000 annually, he added, with little in the way of staffing to manage the streaming service.

"Our hope is we'll enlist either one of the staff from 777 Productions (the company that produces city Board meeting broadcasts on cable) to simply hit 'Go Live' on the equipment and send the signal up that way, or perhaps (City Clerk) Sherri (Gard) or someone. Worst case, it would be a staff from ITS there for the duration of the meeting. Again, that's sort of the logistics testing part we're going to work out to make sure everyone's singing from the same hymn book, so to speak."

For residents unable to attend a meeting or watch it live online or on the community access channel on Cox, Gibson said videos of meetings are and will continue to be available on the city's website under the "Board of Directors" section.

As for special meetings or study sessions, there is a possibility of adding streams of those meetings, Gibson said, though he said it would likely be only after requested by the Board.

To do so, the IT department would utilize a webcam in order to broadcasts since it would not have broadcast-quality cameras now in use at regular Board meetings held at the Fort Smith school service center. Study sessions are typically held at the Fort Smith Public Library, though meetings are occasionally held at the Southside Senior Center and the Elm Grove Community Center.

"Yes, the possibility would exist (to add study sessions and other meetings in the future) if it's ever requested," Gibson said. "Of course, we work at the pleasure of the Board and administration, so if that request ever were to come or due to public demand, then obviously we want to be at the ready and not have to start from the beginning. That's why we're also going to test with a webcam (even though broadcast cameras will be used for regular city Board meetings)."

In the region, the only other city to livestream city council meetings is Fayetteville.

The lawsuits against former bank president Dennis Smiley are starting to pile up, with Arvest now pursuing Smiley and his business interests for more than $800,000 owed from loans it made to Smiley.

Arvest filed its third suit against Henry Dennis Smiley Jr. and his wife Cynthia Smiley on Tuesday (Aug. 26) seeking a judgment totaling $181,782 for a consumer loan made to the couple in April 2012.

The loan made to Smiley totaled $215,000 and corresponds with the timing of the Smiley’s home purchase in Pinnacle Country Club, though the supporting documents don’t list the loan as a home mortgage. It was a 60-month balloon note with regular interest payments, according to the filing.

The personal loan was secured by 692 shares of First State Bancshares owned by the Henry Dennis Smiley Revocable Trust and assigned to Arvest Bank. The same shares were pledged in two other loans also in default to Arvest Bank in the amount of $81,718. Those two loans were made to H. Dennis Smiley Jr., wife Cynthia and their business entity Design for the Home. LLC. Arvest filed a suit regarding that delinquency in Benton County Circuit Court Aug. 18

Smiley worked as president of Arvest Bank’s flagship market, Benton County, and during that time he took out numerous loans from his employer totaling more than $800,000, according the recent lawsuits filed against him and his business interests.

First Security Bank also recently began foreclosing on his home after his $200,000 mortgage fell into default. The mortgage was recorded May 16, 2012. The amount owed as of June 26 was $191,143. In addition, Smiley took out a second loan with First Security in June 2013. That loan totaled $40,150 using the home as collateral. A third loan against the home was made by Benefit Bank for $40,000. That loan was recently assigned to Arvest Bank in a settlement reached last month between Arvest and 18 banks also seeking payment from Smiley’s retirement funds.

The amount of money Smiley was able to borrow from at least 21 known banks exceeds  $4 million, and very little of that debt was paid down according the lawsuits and requests for judgment made to date.

Smiley’s known assets were short of the money owed against them. The assets include $551,764 in retirement funds, a home valued at $568,000 with three mortgages, and 682 shares of restricted First State Bancorp stock owned by a family trust.

Banking consultants John Dominick and Phillip Knight agreed that Smiley used his influence in the banking community to get loans that would not have been made to many consumers. The paper trail of lawsuits indicates Smiley went to his friends and family first for loans, even borrowing in his father’s name — Henry Dennis Smiley Sr., a 73-year-old bank chairman at First State Bank of DeQueen. His longtime friend and fellow banker Gary Head at Signature Bank also made loans to Smiley. Neither Signature Bank nor First State Bank DeQueen were part of the 18 bank settlement with Arvest.

Dominick, banking professor at the University of Arkansas and a director in Signature Bank, recently told The City Wire that the institutions making the loans bear some responsibility in allowing Smiley to accumulate so much unsecured personal debt. He said there was a lack of due diligence among many of the banks lending to Smiley.

“They knew him and because of his prestigious position at Arvest perhaps they let those things cloud their better judgment,” Dominick said.

Head said Signature has not filed suit against Smiley.

“Our lawyers have been working directly with Dennis and his counsel. We prefer not to kick a man when he’s down, but we will continue to pursue payment for the money we are owed and will have counsel at the hearing next month,” Head said.

Benton County Circuit Judge John Scott has ordered a hearing to sort out the remaining lawsuits and schedule trial dates or dismissals on Sept.18. The three recent Arvest suits will be reviewed at that time along with any other civil matters related to Smiley’s loans.

Criminal charges have not yet been filed, despite a federal investigation into Smiley’s borrowing habits. His father and at least three Arvest bank employees have said their signatures were likely forged on loan documents and security agreements on behalf of Dennis Smiley. Smiley Sr. has repeatedly told the court that his name was used in co-borrowing instances of which he had no knowledge, claiming he has been a victim of fraud.

Legal experts told The City Wire that federal fraud charges are likely but there is no rush  given that prosecutors will want a very thorough investigation due to the scope and high profile nature of this case.

Using federal sentencing guidelines, just one count of wire fraud involving 21 victims, unauthorized use of someone’s identification, offense against at least one financial institution with a total victim loss of $3 million would carry at sentence range between 97 and 121 months and fines up $150,000.

Tyson Foods is moving toward closing its acquisition of Hillshire Brands but has again had to extended its tender offer of $63 per share on the $8.55 billion deal from. Tyson Foods noted in a release Tuesday (Aug. 26) that it expects the deal to close by Sept. 27. Some 53% of shares have already been tendered. Analysts agree the deal will likely pass regulatory muster despite some concerns from the pork industry about lost production.

Tyson was notified Wednesday (Aug. 27) by the U.S. Department of Justice that it must divest Heinold Hog Markets, its sow purchasing business, in order to get DOJ approval. The department said that without the required divestiture the transaction would have combined companies that account for more than a third of sow purchases from U.S. farmers, likely reducing competition for purchases of sows from farmers.

State attorneys general from Illinois Iowa, and Missouri joined the department in the civil lawsuit filed today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the department’s lawsuit.

“Farmers are entitled to competitive markets for their products. Today’s proposed settlement will help ensure that hog breeders in the United States will continue to receive the benefits of vigorous competition when selling sows,” said Bill Baer, Assistant Attorney General in charge of the Antitrust Division. “Without the divestiture, the proposed acquisition would have eliminated a significant customer for farmers’ sows and likely would have resulted in less competition in this important agricultural market.”

Neither Tyson, nor Hillshire management, have disclosed what their combined operation will look like geographically and if there are plans to shutter or sell off any of their processing facilities spread across 11 states.

Hillshire's meat-related operations include:
• Kansas City, Mo., (sliced lunchmeat processing);
• St. Joseph, Mo., (sliced lunchmeat, hot dogs and links);
• Zeeland, Mich., (deli and breakfast bowls);
• Storm Lake, Iowa (Turkey production and processing);
• San Lorenzo, Calif., (Aidells Sausage and specialty meats);
• Rancho Cucamonga, Calif., (Golden Island Jerky);
• New London, Wisc. (sliced lunchmeat, smoked sausage and hot dogs);
• Newbern, Tenn., (sausage);
• Haltom City, Texas (corn dogs);
• Florence, Ala., (sausage);
• Claryville, Ky., (sliced lunchmeat, cocktail wienies and hot dogs).
• Rome, Ga., where Nature Valley Granola is manufactured;
• Vernon, Calif., Van's Natural Foods plant;
• Traverse City, Mich., Chef Pierre pie-manufacturing plant.;
• Tarboro, N.C., Sara Lee plant produces frozen cakes, croissants, muffins and cobblers.

Tyson recently announced the closure of three of its prepared foods manufacturing plants in Cherokee, Iowa; Buffalo, N.Y.; and Santa Teresa, N.M., citing the need for improved efficiencies as the plants tagged for closure were outdated. Tyson is shifting some of the production to more efficient plants. The Cherokee plant is slated for closure Sept. 27 and the other two are expected to wind down operations in the first half of 2015. An estimated 950 jobs are being eliminated with these closures.

BUSINESS TRANSFORMATION
The Springdale-based meat giant also sold its commodity businesses in Mexico and Brazil to competitor Pilgrim’s Pride, whose parent company JBS is based in Brazil.

“These recent moves by Tyson make sense,” said Steve Kay, publisher of Cattle Buyers Weekly. “The sale of the Latin American business simplifies things because they will have so much on their hands with this Hillshire acquisition. The plant closures of the underperforming sites is another way Tyson is getting ready for the transformation in their business. ... They began preparing for this Hillshire deal more than year ago. Dipping their toe in the water with several small prepared foods acquisitions (Boscos Pizza, Don Julio Foods and Circle Foods) while they spent time reviewing Hillshire’s business,” Kay told The City Wire.

Aside from the plant closures already announced, Kay does not expect to see much manufacturing overlap when the merger is completed.

Wall Street analysts expect Tyson might sell off a few of the ancillary businesses within the Hillshire portfolio such as the confectionary Chef Pierre pie and the frozen Sara Lee brands. There is a plethora of merger and acquisition demand in the packaged food sector given cheap money and a thirst for market share. The companies themselves have not commented on these possibilities.

Not everyone is convinced that Tyson’s manufacturing footprint won’t need more tweaking once the deal is complete.

“We find it a bit disconcerting that the fiscal year 2015 plan hinges so heavily on the expectation that two Tyson divisions, Chicken and Prepared Foods, will deliver record results even though they just missed expectations in 3Q due to supply chain problems at antiquated production facilities. Manufacturing problems don't get solved overnight, and it sounds like the company needs to do some heavy lifting within their footprint to get back on track,” Credit Suisse analyst Robert Moskow noted in a July 28 report to investors.

PROCESSING HICCUPS
Moskow is concerned about the non-recurring items mentioned in the recent quarter restricting the company’s chicken margin by 1.5% to 2%.

“There were a few things that happened in the quarter at manufacturing facilities that contributed to lower volume. The company suffered a fire in one of its fully cooked processing plants in February. The damage was more extensive than the company thought and it impaired their ability to provide adequate supply. Management said the repairs have been completed and the plant is back on line. In addition, a second fully cooked processing plant had some operational issues related to outdated equipment. This also significantly impacted volumes. Management said the new equipment has been ordered and the they expect to return to full production volume by first quarter of 2015,” Moskow said.

Tyson has agreed to buy meat on the open market at expensive prices to fill its customers’ orders. Tyson execs said this strategy will continue going forward.

“The supply chain issues coupled with the higher input prices amount to a chicken margin impact of 1.5% to 2% in the back half of the year,” Moskow notes.

FUTURE GAINS
Tyson and Hillshire Brands will create the biggest meat company in the world with some $40 billion in combined annual revenue once the deal is completed.

Kay said Tyson bet the farm on a deal that has the potential to radically transform its business model from the fresh meat business into a higher margin retail packaged food company like Hormel. He said the deal can be summed up in three words: Brands, breakfast and margins.

Tyson reported that the combination of assets will accelerate its growth in the coveted $1 billion breakfast-food category, the fastest growing segment in the food sector. Tyson CEO Donnie Smith said combining the brand strengths of Wright Brand bacon and Jimmy Dean sausage make for a blissful marriage and growing market share. Aside from having a lock on breakfast meats, the Hillshire portfolio also expands Tyson’s reach into the cereal, gluten-free and granola markets with the Nature Valley brand and the recently acquired Van’s Foods.

Smith said the combined brands include four that are worth $1 billion or more. He said the combined companies will be the No. 2 player in the frozen retail category with $3.7 billion in annual sales, leap frogging over ConAgra Foods at $3.3 billion.

The biggest reason Tyson is eager to complete the Hillshire deal is the promise of higher operating margins, Kay said.

“In fiscal 2013, Hillshire had a net margin of 4.7 % versus 2.3% for Tyson. On an operating basis, Hillshire’s retail business had an 11.4% operating margin and its foodservice business a 7.3% margin,” Kay said.

Compare that Tyson’s overall operating margin of 4% in 2013 and Kay said it’s easy to see the attraction.

“Hillshire’s $404 million in operating income in 2013, and what will most likely be a larger number in fiscal 2014, obviously appealed a lot to Tyson,” he said.

RISK ASSESSMENT
Tyson’s eagerness to get this mega deal done is not without risks that the company publicly disclosed in an Aug. 7 filing with the Securities and Exchange Commission.

Tyson execs note that while they plan to achieve targeted benefits with the Hillshire acquisition, they realize that will depend largely on their ability to integrate the two different businesses.

“The necessity of coordinating geographically separated organizations, systems and facilities and addressing possible differences in business backgrounds, corporate cultures and management philosophies may increase the difficulties of integration. We and Hillshire Brands operate numerous systems, including those involving management information, purchasing, accounting and finance, sales, billing, employee benefits, payroll and regulatory compliance. Moreover, the integration of our respective operations will require the dedication of significant management resources, which is likely to distract management’s attention from day-to-day operations. Employee uncertainty and lack of focus during the integration process may also disrupt our business and result in undesired employee attrition. An inability of management to successfully integrate the operations of the two companies could have a material adverse effect on the business, results of operations and financial condition of the combined businesses.” Tyson noted in the filing.

Tyson also warned that cost savings and synergies could differ materially from earlier estimates and investors should not place undue reliance on those estimated cost-savings, which are $500 million over three years.

With respect to executive management, Tyson notes the accelerated vesting of equity-based awards and payment of “change in control” benefits to some members of Hillshire Brands’ management could result in increased difficulty or cost in retaining Hillshire Brands’ officers and employees.

EARNINGS OUTLOOK
Despite the the risks, Tyson management recently provided upbeat earnings guidance for fiscal 2015 with chicken margins of at least 10%, Hillshire synergies of $225 million in the first year and $500 million by year three, with $575 million in proceeds from the sale of the Latin American poultry segment.

On that note, Moskow raised his fiscal 2015 earnings guidance to $3.22 per share, still somewhat below the consensus $3.40 per share.

The target price for Tyson shares according to Moskow is $38. Shares of Tyson Foods closed Tuesday (Aug. 26) at $37.22, for 24 cents. Wall Street’s consensus target price is $46.13. During the past 52 weeks the share price has ranged from a $27.33 low to a $44.24 high.

Northwest Arkansas’ regional economy continues to be the state’s most robust, but the size of the metro workforce declined 3.58% in July compared to July 2013, and the number of employed dipped 0.41% year-over-over.

The July jobless rate of 5.3% was above the June rate of 4.9%,  but below the 6.3% in July 2013. July marked the 13th consecutive month the NWA metro jobless rate has been below 6%

Metro employment of 221,356 was slightly below the 222,972 in June, and also below the 222,272 in July 2013, according to figures released Wednesday (Aug. 27) by the U.S. Bureau of Labor Statistics. The July numbers are subject to revision.

The size of the Northwest Arkansas regional workforce during July was estimated at 233,668, down from the revised 233,438 in June, but 3.58% below the 237,253 during July 2013. The average annual monthly labor size was 234,412 in 2013, 232,208 during 2012, 228,918 during 2011 and 225,974 during 2010.

All of the eight metro areas in or connected to Arkansas had jobless rate increases in July compared to June, but all had jobless rate declines compared to July 2013. During July, the lowest metro jobless rate in the state was 5.3% in Northwest Arkansas and the highest rate was 9.2% in the Pine Bluff area.

NWA METRO NUMBERS
Following are other key figures from the BLS metro report.

Unemployed persons in the region totaled 12,312 during July, up from the 11,466 during June and more than the 14,981 during July 2013.

The Northwest Arkansas manufacturing sector employed an estimated 26,300 in July, unchanged from June, and down from the 26,600 during July 2013. Sector employment is down more than 21% from more than a decade ago when July 2004 manufacturing employment in the metro area stood at 33,300.

Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 46,700 in July, below the revised 47,100 during June, and down from the 47,900 in July 2013. The sector reached record employment of 50,500 in December 2006.

Employment in the region’s tourism industry was 22,600 during July, down from a record of 22,700 in June and up from 21,800 during July 2013.

In Education & Health Services, employment was 24,400 during July, down from 24,500 in June and up from 23,300 during July 2013. May employment of 24,900 set a record for the sector.

In the Government sector, employment was 28,700 during July, down from 30,800 in June and up compared to 27,900 during July 2013.

NATIONAL NUMBERS
Unemployment rates were lower in July than a year earlier in 348 of the 372 metropolitan areas, higher in 16 areas, and unchanged in eight areas, noted the broad BLS report.

The U.S. unemployment rate in July was 6.2%, down from 7.3% from a year earlier. Arkansas’ jobless rate was 6.2% in July, down from 6.3% in June and down from 7.7% in July 2013.

Oklahoma’s jobless rate during July was 4.6%, up from 4.5% in June, and down compared to 5.6% in July 2013. The Missouri jobless rate during July was 6.5%, down from 6.6% in June and below the 6.8% in July 2013.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
July 2014: 5.3%
June 2014: 4.9%
July 2013: 6.3%

Fort Smith
July 2014: 6.5%
June 2014: 6.4%
July 2013: 8.2%

Hot Springs
July 2014: 6.7%
June 2014: 6.5%
July 2013: 8.1%

Jonesboro
July 2014: 6.1%
June 2014: 6%
July 2013: 7.8%

Little Rock-North Little Rock-Conway
July 2014: 6%
June 2014: 5.8%
July 2013: 7.2%

Memphis-West Memphis
July 2014: 8.9%
June 2014: 8.7%
July 2013: 9.6%

Pine Bluff
July 2014: 9.2%
June 2014: 8.6%
July 2013: 10.9%

Texarkana
July 2014: 6.5%
June 2014: 6.3%
July 2013: 7.7%

NORTHWEST ARKANSAS METRO AREA HISTORY
Past annual average unemployment rates
2013: 5.7%
2012: 5.6%
2011: 6.2%
2010: 6.4%
2009: 6.2%
2008: 4.1%
2007: 3.8%
2006: 3.6%
2005: 3.3%
2004: 3.8%
2003: 3.7%
2002: 3.3%
2001: 3%
2000: 2.9%

The Fort Smith regional economy workforce, which appeared to be stabilizing during the past year, took a negative turn in July with a 4.14% decline. The number of employed in the metro fell 2.35% in July compared to July 2013.

The metro jobless rate rose to 6.5% in July compared to 6.4% in June, but was lower than the 8.2% in July 2013, according to figures released Wednesday (Aug. 27) by the U.S. Bureau of Labor Statistics. The July numbers are subject to revision.

The size of the Fort Smith regional workforce during July was 125,055, down from 127,049 during June, and well below the 130,458 during July 2013s. The labor force reached a revised high of 140,253 in June 2007, meaning the July workforce size is down 10.83% from the peak number.

The number of employed in the Fort Smith region totaled 116,936 in July, down from 118,964 in June, and an estimated 2,820 jobs below the 119,756 employed in July 2013.

All of the eight metro areas in or connected to Arkansas had jobless rate increases in July compared to June, but all had jobless rate declines compared to July 2013. During July, the lowest metro jobless rate in the state was 5.3% in Northwest Arkansas and the highest rate was 9.2% in the Pine Bluff area.

FORT SMITH METRO NUMBERS
Unemployed persons in the region totaled an estimated 8,119 during July, up from the 8,085 during June, but well below the 10,702 during July 2013.

The Fort Smith area manufacturing sector employed an estimated 18,100 in July, down from 18,400 in June, and down from 18,400 July 2013. Sector employment is down almost 36% from a decade ago when July 2004 manufacturing employment in the metro area stood at 28,500. Also, the annual average monthly employment in manufacturing has fallen from 28,900 in 2005, 19,200 in 2012, and to 18,300 in 2013.

Jobs in the Trade, Transportation and Utilities sector totaled 24,400 during July 2013, unchanged compared to June and above the 23,800 in July 2013. Employment in the sector reached a high of 25,700 in December 2007.

Employment in the region’s tourism industry was 9,800 during July, up from 9,700 in June and above the 9,500 in July 2013. The July numbers, if not revised, will tie a record for employment in the sector first set in August 2008.

In Education & Health Services, employment was 15,600 during July, down from 16,300 in June and below the 16,700 during July 2013. Annual average monthly employment in the sector has steadily grown since 2005 when it reached 14,000. In 2012 the average was 17,000, but fell slightly to 16,800 in 2013. Employment in the sector reached a record 17,300 in October 2012.

In the Government sector, employment was 16,500 during July, down compared to 18,800 in June and below the 16,500 July 2013.

NATIONAL NUMBERS
Unemployment rates were lower in July than a year earlier in 348 of the 372 metropolitan areas, higher in 16 areas, and unchanged in eight areas, noted the broad BLS report.

The U.S. unemployment rate in July was 6.2%, down from 7.3% from a year earlier. Arkansas’ jobless rate was 6.2% in July, down from 6.3% in June and down from 7.7% in July 2013.

Oklahoma’s jobless rate during July was 4.6%, up from 4.5% in June, and down compared to 5.6% in July 2013. The Missouri jobless rate during July was 6.5%, down from 6.6% in June and below the 6.8% in July 2013.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
July 2014: 5.3%
June 2014: 4.9%
July 2013: 6.3%

Fort Smith
July 2014: 6.5%
June 2014: 6.4%
July 2013: 8.2%

Hot Springs
July 2014: 6.7%
June 2014: 6.5%
July 2013: 8.1%

Jonesboro
July 2014: 6.1%
June 2014: 6%
July 2013: 7.8%

Little Rock-North Little Rock-Conway
July 2014: 6%
June 2014: 5.8%
July 2013: 7.2%

Memphis-West Memphis
July 2014: 8.9%
June 2014: 8.7%
July 2013: 9.6%

Pine Bluff
July 2014: 9.2%
June 2014: 8.6%
July 2013: 10.9%

Texarkana
July 2014: 6.5%
June 2014: 6.3%
July 2013: 7.7%

FORT SMITH METRO AREA HISTORY
Past annual average unemployment rates
2013: 8%
2012: 7.7%
2011: 8.3%
2010: 8.2%
2009: 7.9%
2008: 4.8%
2007: 5.3%
2006: 4.9%
2005: 4.5%
2004: 5.2%
2003: 5.5%
2002: 5%
2001: 4.2%
2000: 3.7%