Arkansas lawmakers discussed how to handle a $53 million deficit in the Public School Health Insurance program that is threatening near 50% increases in premiums to be paid by teachers and other plan participants.

A meeting of the Joint Education and Insurance committees convened for most of the day on Monday (Sept. 9) as legislators, state officials and teachers debated options for closing the gap, including a call for a special session from one state senator.

The public school health insurance plan, which provides coverage for roughly 47,000 teachers and school personnel in Arkansas, has been troubled for months. Lawmakers were made aware of the problem as early as December 2012, according to minutes from an insurance subcommittee meeting. Towards the end of the session, the issue was debated with lawmakers and Gov. Mike Beebe (D) agreeing to move $8 million in general improvement funds to handle several catastrophic claims that hit the system.

Those big events had depleted reserves for the health insurance program, but other long-term factors have also wreaked havoc on the financial stability of the plan. Under-enrollment in the program was cited as one problem and the lack of allotment of state funds by local school districts for insurance premiums was also discussed.

This summer, state benefits officials said they learned of forthcoming rate hikes and in August, the oversight board voted to approve the increases that led to Monday’s committee hearing.

State Sen. Jason Rapert, R-Conway, chairman of the Senate Insurance Committee, suggested a special session may be needed to deal with the crisis. But, Beebe said he was opposed to calling a special session. His spokesman, Matt Decample, said the Governor would not consider a call if the issue could be handled in next year’s fiscal session or unless a consensus solution emerged.

In a meeting with key legislators last week, Decample said short-term financial solutions and long-term system options were discussed.

LEGISLATORS REACT
Rep. James McLean, D-Batesville, chairman of the House Education Committee, said he thought the day’s discussion was educational to bring lawmakers up to speed on how the funding for school personnel health insurance works.

In the short run, he sees the need for immediate action either in a special session or in February 2014′s fiscal session.

“It seems to me there’s going to have to be some infusion of one time money very quickly,” McLean said. “I don’t think we can wait until 2015 to do this.”

Sen. Joyce Elliott, D-Little Rock, a member of the Senate Education panel, said the debate did not provide clarity on every issue, but it did help dispel misunderstandings about the complexity of the program.

“No question, we must figure out a short-term solution, which – unfortunately – means more funding,” Elliott said. “Long-term, we must be open to re-thinking the whole structure on which the system is built.”

Sen. Johnny Key, R-Mountain Home, chairman of the Senate Education Committee, said more incentives could be used to empower school employees to “take charge” of their health care decisions and be more invested as consumers.

“In the long run, this would drive down costs, benefitting both the employees and the taxpayers,” said Key. “Another is to continue pouring funds to prop up the current plan options, and I don’t sense an appetite for that among my colleagues.”

Sen. David Sanders, R-Little Rock, a member of the Senate Revenue and Tax panel and an architect of the private option plan approved in the last session, said the school personnel insurance program is “a huge mess” and “an actuarial nightmare.” Sanders said it will be hard to come up with a short-term fix.

“We don’t have a mechanism to ease the shock during the new plan year now, but we need to try,” he said.

Like Key, he wants to see a push for consumerism as a long-term solution for the public school health insurance plan.

“Throughout the state and country, numerous self-funded/insured plans have pursued plan management strategies aimed at injecting consumerism, personal responsibility and employee participation into plans. As a result, prices have stabilized in those plans. That’s not been the case in this situation,” said Sanders.

Consumers have shown in recent months they are quite willing dole out money for large ticket items such as new cars and even homes, but at the same time retailers and restaurants report mixed results linked to other discretionary purchases.

A recent credit card study by CardHub.com found consumers incurred more than $17 billion in new credit card debt during the second quarter of this year, wiping away more than 50% of the credit pay downs made in the first quarter.

Analysts said it’s not unusual for consumers to pay down debt in the first quarter as that is when bonuses and many tax refunds are received. However, the spending ramp up that followed this year was 75% higher than consumer tabs in 2010 and 2009 during the early phase of an economic recovery.

CardHub is projecting that consumers will end the year with roughly $41.2 billion in new credit card debt. The average household now owes $6,658 to credit card lenders, up from $6,590 after the first quarter.

While consumers are not afraid to spend on key items they want, it appears they are not over-extending their finances as credit delinquencies continue to decline.

“The fact that charge-off rates are near record lows is significant, as it indicates that consumers are no longer leveraging credit card debt in order to meet basic needs during times of financial hardship. Instead, habitual overleveraging now seems to be a choice,” says Odysseas Papadimitriou, CEO of CardHub.com.

Credit advisors warn that there are plenty of consumers who rely on minimum payments and continue charging, an unsustainable pattern.

For long time economic recovery, credit specialists said consumers will have to prioritize sensibility over luxuries.

U.S. consumers have charged-off on more than a quarter of a trillion dollars since the beginning of 2009. The charge-off rate, at 3.86%, is at the lowest point since 2006.


Steak and hamburger lovers will pay more to eat beef in the coming year as the number of cattle imported from Mexico continues to plummet. Consumers may wonder what the two events have in common, but industry analysts said it’s a matter of supply and demand.

Caught in the middle are beef packers like Tyson Foods that rely on Mexican cattle imports to keep a tighter lid on fed cattle prices in the U.S. which they procure, slaughter, process and sell.

“I project that we will import roughly 800,000 head of Mexican cattle for 2013, down from 1.46 million head in 2012. Mexican imports of less than 1 million head are likely for the next two to four years,” said Derrell Peel, livestock marketing specialist at the Oklahoma State University.

He said roughly 1% of the projected 6% decrease in steer and heifer slaughter in 2014 will result from the lack of Mexican cattle.  

“The loss of Mexican cattle contributes to overall declining feeder cattle supplies that will be quite severe from this point on. I expect to see cattle slaughter decrease about 7.5% in the fourth quarter of 2013 and to decrease about 7% for the entire year of 2014,” Peel said.

Discounting for cow slaughter, Peel expects steer and heifer slaughter will be down roughly 6%, which is about 1.5 million head less in 2014 compared to 2013.

The impact for packers like Tyson Foods or Cargill, is that reduced volumes of fed cattle are sure to push up cattle prices, which brings down packer operating margins. Peel estimates fed cattle prices are likely to exceed $135 per hundredweight in the spring of 2014, noting that $140 is possible.

Beef packers have already started to see their margins slowly decline in the past two weeks, falling another $4.17 per head last week to $14.10, according to the Sterling Beef Profit Tracker. While margins are slim, Packers are faring better than this time last year, when they dealt with losses of $33.34 per head, according to Sterling Marketing Inc.

The reason behind fewer Mexican cattle imports is two fold, according to Peel. First the industry dynamics in Mexico have changed from a commodity carcass-based model to a processed boxed beef model. In other words Mexico is processing more of its own cattle and selling that product as boxed beef into the U.S.

Secondly, Peel said the severe liquidation of cattle in Mexico in recent years has resulted in a decrease in Mexican cattle available for export to the U.S. Though data to confirm are limited, Peel said it appears that the shortage of cattle in the Mexican market is very acute.

The underlying economics in the beef industry are complicated as the U.S. relies heavily on beef imports to satisfy its huge demand for hamburger meat and at the same time relied on export markets for higher margin beef products from prime rib to tanned leather.

Peel said most of the hamburgers consumed at restaurants in the U.S. comes from cows raised in Australia and New Zealand, processed into frozen boxed beef and shipped via container to the U.S. Meat sold in food service outlets is subject to Country of Origin Labeling that is required in retail sales.

He said if the U.S. were to try and meet the ground beef demand with only U.S. beef that would be grinding higher value cuts into hamburger – certainly possible but a waste of value.

“It’s like using a Lexus to haul things rather than a pickup truck just because you don’t make enough pickups,” he said.

Peel said the Mexican cattle imports and continued trade with all of the U.S. export partners are crucial to maintaining the balance between supply and demand which keeps packers in the green and consumers buying beef.
 
“We are in rather uncharted territory as far as beef demand is concerned. The supply decrease suggests the potential for retail beef prices to rise 10% to 15% or more but it will be tempered by larger pork and poultry supplies as well as other demand factors,” Peel said.
 
Choice beef set a retail high price in July at $5.35 per pound, according the Bureau of Labor Statistics. The retail price rose 6.86% from a year ago and its up 9.95% from two years ago.

Retail chicken prices have also risen sharply in the past year with skinless, boneless breast meat hitting a high $3.55 per pound in July. The retail price jumped 5.65% from last year its 9.91% more expensive that two years ago, according to U.S. Department of Agriculture data.

Fresh pork cuts retailed for $3.50 per pound in July, down from $3.78 a year ago and flat against prices in the summer of 2011, according to BLS data.

Peel expects the pricing gap between beef and other meat proteins to widen in the coming year.

As Thermold Magazines President Sylvan Bednar made his way up to address a crowd of about 75 gathered Tuesday morning (Sept. 10) at the Fort Smith Regional Chamber of Commerce, Gov. Mike Beebe broke the silence with a request.

“Well, how ‘bout some applause?”

The crowd acquiesced, and Bednar followed the applause by announcing that the company would relocate its operations and headquarters from North Carolina to Fort Smith. The deal will create an estimated 65 new jobs and the company plans to invest $7.14 million in the move.

Thermold Magazines began in the 1960s as a molded plastics injection manufacturer serving the automotive industry, according to a statement from the Arkansas Economic Development Commission. The company later began producing weapons magazines using a nylon resin known as Zytel that “resisted heat and corrosion while functioning with high reliability.” The company now produces magazines for military personnel, law enforcement officers, and sport shooters worldwide.

In an unusual twist for a new jobs project, Thermold will locate within the River Bend Industries plastics molding plant in Fort Smith. River Bend will produce components of Thermold products, and Thermold employes will handle assembly and distribution.

“We’re not only helping bring a new company to town, but we’re also helping an existing company that has been through some of the rough times with offshoring ... and with that plant (Whirlpool) closure,” said Tim Allen, president of the Fort Smith chamber.

River Bend was a supplier to Whirlpool for many years. Whirlpool closed its refrigerator manufacturing plant in Fort Smith in June 2012. In early 2011, River Bend employed about 120 in Fort Smith. The company now employs about 85 in Fort Smith. River Bend also has plastics molding plants in Iowa, and the company has about 365 employees.

Bednar said part of Fort Smith’s attraction was being able to partner with River Bend. According to the AEDC, River Bend custom molds thermoplastics and engineering resins. The company has three facilities in two states housing 108 molding machines in 444,000 square feet of manufacturing space.

“It’s a nice marriage. It makes sense,” Bednar told the crowd.

In a statement issued by the AEDC, Bednar noted: "The entire Thermold team is excited to establish our North American headquarters in Fort Smith. Governor Beebe, the AEDC, and the Fort Smith Chamber of Commerce have worked tirelessly to make this happen and we appreciate all of their combined efforts. Thermold Magazines is committed to helping get people back to work and being a positive influence within this great community."

Joining Bednar were Thermold CEO Joe Vaughan and Michael Todd, Thermold vice president of sales.

Ron Embree, president of River Bend, said he is glad to see manufacturing jobs return to Fort Smith because the spirit of America “is in making things.” It was a theme Beebe continued in his remarks, adding that he is “starting to see a reversal” of the trend to take manufacturing out of the U.S.

“A country has to make stuff,” Beebe said. “If you don’t make things, ultimately your society is going to suffer.”

The Arkansas economy has suffered as the result of manufacturing job losses.

The U.S. Bureau of Labor Statistics estimated there were 154,300 manufacturing jobs in Arkansas during June 2013. Employment in the sector is down 24.6% compared to June 2003, and is down almost 38% compared to the sector high of 247,300 set in February 1995.

Arkansas’ three largest metro areas have seen double-digit percentage declines in manufacturing job levels between June 2003 and June 2013. Jobs in the sector are down 23% in central Arkansas, down 34.16% in the Fort Smith region, and down 20.8% in Northwest Arkansas.

During his remarks, Beebe also took a shot at some who suggested the Governor’s reserve of money used for economic development incentives should be used to ease a $53 million deficit in the Public School Health Insurance program that is threatening near 50% increases in premiums to be paid by teachers and other plan participants.
www.thecitywire.com/node/29467

“(I)f you do that, we don’t have these (new job) announcements,” Beebe warned.

As to future announcements, Beebe said Arkansas is one of many states actively recruiting companies in the growing firearms industry. The National Shooting Sports Foundation reported that the 2012 economic impact of the U.S. firearms industry was $31.8 billion, with more than 26,000 new jobs in the sector between 2011 and 2012. Sales of weapons and ammunition have risen dramatically in recent years in response to concerns about tighter federal gun control laws.

Thermold will be used by state officials to market to other companies in the industry.

“We’re going to put you on our list of success stories,” Beebe said, pointing to the Thermold executives.

Gov. Mike Beebe said in late August he was optimistic Arkansas would soon see results from job recruitment efforts associated with the Wal-Mart manufacturing summit. The optimism was not unfounded.

Grant Tennille, executive director of the Arkansas Economic Development Commission, told The City Wire that an announcement is likely before the end of the month on one company planning to set up manufacturing operations in Northwest Arkansas. Tennille said a second company is “really, really close” to making a commitment to Arkansas.

Beebe was one of eight state governors to attend the “U.S. Manufacturing Summit” in Orlando, Fla., that was held Aug. 22-23. The event connected economic development officials from 36 states with about 600 Wal-Mart suppliers and retail vendors.

The summit was the first high-profile public event held by Wal-Mart following the Jan. 15, 2013, company pledge to purchase in the next 10 years an additional $50 billion in U.S.-made goods. Company officials have said they hope to boost U.S. manufacturing – often referred to as “onshoring” – by purchasing more sporting goods, apparel basics, storage products, paper products, textiles, furniture and higher-end appliances.

Tennille said the two manufacturing companies are in the plastics extrusion/molding sector and “do a lot of high-volume work” for Bentonville-based Wal-Mart Stores Inc. And while there will be a “relatively smaller number of jobs” with the two deals, Tennille said they are “good-paying jobs.” He also said the jobs number could grow if and when the companies move more of their operations to the U.S.

Some operations – especially those that are high-volume providers to Wal-Mart or suppliers to the retailer – that move back the U.S. will have to do so in a way as not to disrupt the supply chain.

“Hopefully, as they are able to move that (production) back in stages, then we are able to see that (jobs number) grow,” Tennille explained.

Beebe, following a Tuesday jobs announcement in Fort Smith, said he spoke Monday afternoon to representatives of the company planning to move some production to Arkansas.

“Oh yeah,” Beebe said emphatically when asked if the Wal-Mart onshoring effort will produce results for Arkansas. Later in the interview, Beebe said, “I’m very proud of Wal-Mart and Bill Simon.”

Simon is the president and CEO of Walmart U.S.

Tennille is not surprised two announcements may happen in the next few weeks. He said Wal-Mart is working with suppliers and in some cases agreeing to longer-term contracts for companies that move production back to the U.S.

“I’m not surprised that we’re getting results so quickly because what Wal-Mart is doing is not window dressing. This is real. They are looking at all suppliers, from top to bottom, and figuring out what may work. ... They might, just as an example, move them (supplier) from a one-year to a three-year contract if they bring some of that (production) back over here,” Tennille explained.

Randy Hargrove, director of national media relations for Wal-Mart, confirmed that the retailer is working with suppliers to incentivize onshoring. Hargrove provided the following statement to The City Wire:
“We can collaborate with manufacturers, make longer term product commitments on basic goods and help connect them with the best resources so they can make the most informed decisions about capital investments. One of the benefits to producing closer to home is responding to trends and seasonal business trends and customer demand changes. Having that flexibility is great for the customer, supplier and meeting customer needs.”

Tuesday delivered a visible beginning of the end for the 188th Fighter Wing mission in Fort Smith as two A-10 war planes departed the Fort Smith Regional Airport for a new home at Moody Air Force Base in Georgia.

The 188th is in the early stages of a conversion from A-10s to a remotely piloted aircraft and Intelligence mission.

“Over the course of the coming months, the 188th will lose two aircraft per month until June 2014, when the final two are slated to depart. Tail Nos. A0644 and A0614 were the first two to leave on Tuesday. Those two A-10s will join Moody AFB’s 75th Fighter Squadron. Two 75th pilots arrived in Fort Smith via commercial flights and flew the former 188th jets back to Moody AFB,” noted a statement from the 188th.

The next two A-10s are set to leave in October.

Broad cuts in U.S. defense spending – possibly up to $500 billion over 10 years – include the removal of the 20 A-10 Thunderbolt fighter planes from the 188th Fighter Wing in Fort Smith.

With the loss of the A-10 mission and the new MQ9 (drone) mission, along with the relocation of the 123rd Intelligence Squadron from Little Rock Air Force Base to Fort Smith and other shifts, Fort Smith's base should only see a small reduction in individuals stationed at the site, according to 188th commander Col. Mark Anderson.

Anderson said during a Sept. 6 address to members of the Fort Smith Regional Chamber of Commerce that 977 positions are based at the 188th, which will be reduced to 960 positions as a result of the realignment.

While the number of positions will not see drastic changes, the types of positions will be vastly different. For example, Anderson said the base will lose all aircraft maintenance jobs and most aviation support positions as the drone mission will not require "guys with wrenches" to be on site and servicing the drones.

“While we’re sad that our A-10s had to go, we’re getting a cutting edge mission that will feature a substantial Intelligence and RPA mission. It’s definitely bittersweet,” Anderson said in the 188th statement issued Tuesday (Sept. 10).

The 188th statement included the following history with the A-10.
• The 188th received its Warthogs in April 2007.

• The 188th deployed 10 A-10s and nearly 300 Airmen to Kandahar Air Base, Afghanistan in 2010.

• The 188th logged the largest deployment in unit history in 2012 when it sent 10 A-10s and nearly 400 Airmen to Bagram Airfield, Afghanistan.

• While in Bagram, the 188th set deployment records in combat sorties (1,850), combat flying hours (8,000), precision guided munitions drops (375), 30mm Gatling gun rounds fired (60,000) and rockets launched (210). The 188th provided vital close-air support to nearly 500 troops in contact on the battlefield with an astounding zero air tasking orders missed.

• While deployed to Bagram, the 188th maintained an 87 percent mission capable rate.

• During its last deployment, the 188th was heavily tasked, flying in three months at Bagram what would typically take two years to accomplish in a home station training environment in Fort Smith.

• The 188th consistently led all five A-10 Air National Guard units in all key metrics, including mission capable and fully mission capable rates.

188THHISTORY

According to the 188th website, the unit began in October 1953 as the 184th Tactical Reconnaissance Squadron.

The unit has been home to nine aircraft types, beginning with the RB-26, a twin-engine modified bomber. The unit converted in 1956 to the RF-80, a jet aircraft, when the unit was assigned a daylight reconnaissance mission.

The RF-84F arrived in 1957, and was replaced in 1970 by the RF-101 (Voodoo).

In 1972 the unit’s recon mission ended with the arrival of the F-100 Super Sabre. The unit was recast as the 188th Tactical Fighter Group. In 1979, the “Flying Razorbacks” handle was adopted by the 188th when it received the F-4C Phantom.

In 1988 the F-16A Fighting Falcon replaced the F-4C, and in 2000 the F-16s were upgraded to the F-16 A variant.

A last-minute decision by the Base Realignment and Closure Committee in 2005 replaced the F-16 with the A-10. On April 14, 2007, the 188th received its first A-10.

Citizens of Fort Smith may not notice anything different, but following today's (Sept. 10) Board of Directors study session, the city will begin attempts to incorporate compressed natural gas vehicles into the city's moving fleet as older vehicles are aged out and replaced.

The consensus by the Board came after a pilot program was conducted across various city departments, including the fire department, customer service department, police department and transit department.

Results for the various departments have been mixed, according to Deputy City Administrator Jeff Dingman. In a memo the Board, Dingman said the cost of converting the fire department's 2012 Chevrolet Silverado 1500 pickup was $5,250, with an expected break-even after 33 months of use.

"The Fire Department reports that its performance experience has been very good," he wrote. "They have had no maintenance issues with the vehicle, and do not notice a performance difference in either responsiveness of fuel economy whether the vehicle is operating on gasoline or CNG, averaging 15 miles per gallon regardless of fuel. It takes approximately eight minutes to refuel the pickup."

While the fuel economy does not appear to be any better on the Fire Department vehicle, Dingman did point out that the using natural gas has increased how long the truck can go between oil changes, from 3,000 miles using conventional fuel to 5,000 miles between changes using CNG.

On the other side of the CNG issue is the police department, which did report performance issues.

"The police department reportedly observed a reduction of power when operating on CNG," Dingman wrote. "CNG works for performing normal driving activities but does not allow an officer to initiate a swift response to a fleeing suspect when the situation requires, especially as compared to the gasoline-powered vehicles. The lack of responsiveness for quick acceleration motivates the operator to switch to gasoline for full power. Switching to gasoline for this reason, or for issues with fuel capacity noted above, reduces the efficiency of the CNG system and extends the payout period for the conversion cost."

Overall, the police department said not much was learned from the test vehicle, a 2010 Chevrolet Tahoe police pursuit vehicle, noting that without some sort of modifications to be more conducive to the demands of police patrols, CNG vehicles are not as reliable as gasoline-powered cruisers.

Even though the results were mixed, city directors present at today's study session were clear in their desire to continue pursuing CNG-powered vehicles.

"I think this is the wave of the future and to me, it's about clean energy," Director Pam Weber said. "Ultimately, this is an economic development tool, not only for our country but for our region because we are sitting on a very large natural gas deposit here in the Arkoma Basin."

Michael Callan, president of Arkansas-Oklahoma Gas, was on hand and told Weber and the rest of the board that the cost for fueling a CNG-powered vehicle was around $1 per gallon, versus $3.34 per gallon using conventional unleaded gasoline. With those costs reduced, plus the fewer needed oil changes on converted vehicles, he reiterated that conversions usually pay for themselves in about four years.

Callan said while he is a big proponent of CNG, he would advise against converting aged vehicles within the city fleet, instead focusing on new vehicles, namely trucks, that can be sent from a factory with the CNG conversion already completed and that include warrantees.

City Administrator Ray Gosack said as the 2014 budgeting process moved forward, he would make sure that a focus on CNG vehicle purchases was a part of the city's fleet replacement plans. But he cautioned that a large influx of CNG-powered vehicles may still be a long way off due to the fact that the city must work within budget constraints. Already this year, all departments have had to reduce budgets by 4% due to a reduction in sales tax revenues.

In other business, the Board discussed placing on the agenda at the next regular Board meeting an update to the city's current policy for the consideration of payment of claims related to sanitary sewer back-ups. Currently, the city will reimburse homeowners up to $500 to cover a deductible associated with a homeowner's insurance claim. The proposal would increase the maximum payment to $1,000 to keep with the rise in insurance deductibles.

The U.S. Marshals Museum Board of Directors on Tuesday (Sept. 10) approved a plan to move the museum site about 2,000 feet north on the Arkansas River bank in order to provide more space for the more than 52,000-square foot building.

In January 2007, the U.S. Marshals Service selected Fort Smith as the site for the national museum. The cost to build the museum — including exhibit work — is estimated at around $53 million. Although the announcement was made in 2007, formal fundraising activities did not begin until the latter part of 2009.

Pat Mickle, with the Fort Smith-based engineering firm of Mickle Wagner Coleman, and Reese Rowland with Little Rock-based architectural firm of Polk Stanley Wilcox, presented the case as to why a move slightly up the river makes sense.

The primary reason is that the new site is almost double the size of the original tract near the Harry E. Kelley Park, and allows for more parking and more area in which landscaping can be used to better present the building, Mickle said. The move is made possible because the family of Robbie Westphal agreed to increasing the size of the land donated to the museum effort. Mickle and Rowland said visitor history at the Crystal Bridges Museum of American Art in Bentonville and the Clinton Presidential Library in Little Rock suggested that estimated visitor counts for the Marshals Museum may have been too low, thus the need to plan for more space.

Mickle said discussions to move the site arose when the families who own land on the riverfront – the Westphal family and the Richard Griffin family – began working with the city to ensure the highest and best use of the property.

“The Westphal family has been generous enough to say, ‘This is what we want to do,’” Mickle explained.

Bennie Westphal and Robin Clegg, son and daughter of Robbie Westphal, attended the board meeting. Bennie is a member of the museum board.

Rowland said the new site could provide up to 200 parking spaces, provides more incentive for higher-use ancillary development on both sides of Riverfront Drive, creates a more “pedestrian-friendly” path up the riverfront, will allow for better views of the river from inside the completed museum and allows for future physical expansion of the museum if needed. The old site provided little to no space for expansion.

“The other site was great, but this site is much better,” Rowland said.

Bennie Westphal said the family was happy to change the location.

“It needs to be done right. ... This museum is going to be an asset to this city long after we’re gone,” Westphal told the board. “I think my father would be very proud of this day.”

Rick Griffin said the goal of the change is to ensure “the entire area develops correctly,” and he praised city officials for helping landowners and museum officials with that goal.

“I really want to give a shout out to the city. They have bent over backwards to work with us on this,” Griffin said.

The board unanimously approved the process to deed the first location back to the Westphal family in exchange for the new property.

Griffin said the move marked a “momentous day” because it allows the construction planning process to begin.

Museum officials have said they hope to break ground on Sept. 24, 2014, the 225th anniversary of the U.S. Marshals founding by President George Washington.

Jim Dunn, president and CEO of the U.S. Marshals Museum, said in mid-August that the museum effort needs between $10 million and $15 million more to reach the “threshold” of between $30 million and $35 million needed to break ground and begin construction. Dunn is confident they will meet the September 2014 date.

Gov. Mike Beebe said Wednesday (Sept. 11) that any short-term solution to a $53 million shortfall in the Public School Health Insurance program must be tied to a long-term solution that could include reducing or repealing recently passed tax cuts.

Beebe, interviewed by Roby Brock in the latest installment of “Talk Politics,” said any money placed in a short-term fix must be “a bridge to get to the long-term solutions.”

Also during the interview, Beebe commented on his plans when he leaves the governor’s office, political ethics, working with Wal-Mart to bring manufacturing jobs to Arkansas, and the presumptive gubernatorial battle between Democratic candidate Mike Ross and Republican Asa Hutchinson.

TEACHER INSURANCE ISSUE
The $53 million deficit is threatening near 50% increases in premiums to be paid by teachers and other plan participants, and lawmakers face growing pressure from teachers and other school employees to address the problem. The Joint Education and Insurance committees met Sept. 9 to debate options for closing the gap, including a call for a special session from one state senator.

The public school health insurance plan, which provides coverage for roughly 47,000 teachers and school personnel in Arkansas, has been troubled for months. Lawmakers were made aware of the problem as early as December 2012, according to minutes from an insurance subcommittee meeting. Toward the end of the session, the issue was debated with lawmakers and Beebe agreed to move $8 million in general improvement funds to handle several catastrophic claims that hit the system.

Beebe on Wednesday said the premium increases are “awfully high,” and teachers will get “hit with catastrophic increases” if the Legislature waits until the fiscal session in early 2014 to address the issue. However, Beebe stopped short of advocating for a special session, saying that it was his job to gather and present options to the Legislature so a consensus could be reached before a session is called.

“If you can agree on that (consensus solution), then you can get in and out in three days” and not waste taxpayer dollars on an extended special session, Beebe said.

What are some options? While declining to say which option he thought best, Beebe’s options include reducing or halting tax cuts approved in the recent session, pulling money from other funds, increasing state control of how school districts allocate money for insurance and reviewing the system for possible changes.

“How did we get here? The system has more claims paid out than money coming in. ... It’s a business. It’s an actuarial function,” Beebe said.

A specific example Beebe mentioned as a source of money for a short-term solution is an about $200 million fund that supports the National School Lunch Act program. The NSLA money supports programs and direct services to benefit low-income students in public schools.

“That’s just one of the options. Now, a lot of superintendents don’t want to do that,” Beebe said.

ETHICS ISSUES
In the recent year, several elected officials have faced ethical and criminal procedures that either forced them out of office or forced them to drop out of political races.

Arkansas Treasurer Martha Shoffner (D) was forced to resign after it was revealed she accepted bribes. Sen. Paul Bookout, D-Jonesboro, resigned from office after it was discovered he used campaign funds for personal gain. Lt. Gov. Mark Darr (R) dropped out of the 4th Congressional District race after Matt Campbell with the Blue Hog Report blog reported on discrepancies and expenses in Darr’s campaign finance reports related to campaign debt from his Lt. Governor’s race.

Beebe told Brock that “progress on that (ethics reform) should continue,” but laws will never prevent unethical behavior.

“I don’t know you ever legislate ethics, ultimately,” Beebe said.

As to whether Darr should follow Bookout’s action and resign from office, Beebe noted that what is “good for the goose is good for the gander.”

“If it’s true, it’s wrong and there have to be consequences,” Beebe said of the allegations against Darr.

OTHER ISSUES
• 2014 Governor’s race, elections
Beebe has endorsed Ross and plans to actively campaign for Ross, but said he believed Hutchinson “would be more pragmatic than a lot of people think he would be.” He pointed to Hutchinson’s support of Arkansas’ private option plan that will regulate how the state spends money under the new federal healthcare system (Obamacare).

However, Beebe said he is actively campaigning for Ross because he trusts that Ross will follow an education and economic development focus that has been the core of Beebe’s time in office.

Beebe also said he may campaign in some legislative races, but not during the primary election cycle.

• Working with Wal-Mart
Beebe said state officials are now working with three companies that may locate in Arkansas as a result of the effort by Bentonville-based Wal-Mart Stores Inc. to return manufacturing to the U.S.

Beebe was one of eight state governors to attend the “U.S. Manufacturing Summit” in Orlando, Fla., that was held Aug. 22-23. The event connected economic development officials from 36 states with about 600 Wal-Mart suppliers and retail vendors.

The summit was the first high-profile public event held by Wal-Mart following the Jan. 15, 2013, company pledge to purchase in the next 10 years an additional $50 billion in U.S.-made goods.

One reason Beebe is confident Arkansas will benefit from the effort is because “we’re seeing more and more patriotism” among American consumers when making choices between domestic- and foreign-produced goods.

• Retirement plans
Beebe, who will leave office in January 2015 after two four-year terms, quickly rejected the notion he could be selected by Hillary Clinton as a running mate in the 2016 presidential election.

“Number one she wouldn’t ask me, and number two Ginger (Beebe’s wife) wouldn’t let me,” Beebe said.

Beebe said his several decades of service as a state senator, Attorney General, and Governor has “been a good ride,” and he’s grateful for the opportunity to serve. He did say that with or without term limits, “eight years is enough for any governor.”

What will he do?

“I may teach a college course, may serve on a board or two,” Beebe said, and added with a laugh that his wife told him he couldn’t just stay at home.

He has several options, but said, “I’m going to wait a little while (after leaving office) and make that decision.”

Sticking with its low price strategy, Walmart U.S. CEO Bill Simon said the back half of this fiscal year will deliver improved financial results, led by rapid growth and strong comparable sales from the Neighborhood Market formats and several other initiatives on tap at the nation’s largest retailer.

Simon spoke to investors Wednesday at the Goldman Sachs retail conference in New York.

“We will continue to deliver low prices on the things people want. We did so on adult beverage alcohol products and have since gained marketshare in this category,” Simon said in his opening remarks. “We know being aggressive on price is key to driving store traffic.”

He said the rapid scale up in the Neighborhood Market format to 500 stores in the next 18 months is key to the company’s growth strategy as these stores are delivering mid single-digit positive same-store sales in a category that returned a 60% net sales growth in the past two years. The Neighborhood Markets are also key in the company’s ability to accelerate its online sales with the site-to-store pick-up option which is gaining traction, according to Simon.

Simon also said the Neighborhood Market and smaller format stores are stocked more heavily with general merchandise than in years past. He said the company’s Presidential Towers store in Chicago at any time could contain up to 30% of general merchandise from the site-to-store option.

“Our customers are using this option, many times ordering online then paying with a credit card when they pick it up in the store,” Simon added.

Wal-Mart also is using more stores to fill online orders, after piloting that program in recent months. He said the number of stores filling online orders are in the double digits and growing. The locker tests have also been well received as Simon told investors it’s been interesting to see the users’ inclinations to repeat purchases.

When asked about price leadership, he said Wal-Mart gets better separation from competitors when prices are moving up or down related to inflation or deflation. Simon said when prices are moving higher Wal-Mart can hold prices down longer because of the scale on which it procures product. Likewise, he said when prices are moving down, Wal-Mart can drop the prices ahead of other retailers because it moves more product faster.

He said Wal-Mart will lower the price if that added value pushes more sales, otherwise it doesn’t make sense.

PRODUCE GAINS
Simon said Wal-Mart will continue to capitalize on the success it is seeing in its fresh produce category spurred on by its “fresh audit” initiative that has improved the quality while also produced a 10% price gap between major competitors leading to solid marketshare gains in the past two quarters.

Carol Spieckerman, CEO of New Market Builders in Bentonville, has said the “fresh” category is an important element from big box retailers to convenient stores. She said companies that can figure out to deliver the freshest product for the best prices in convenient formats are bound to capture marketshare. Spieckerman said “fresh” is also an important traffic driver, but the one thing a retailer can’t afford to do is to disappoint a shopper who goes into a store looking for fresh items that are not there.

Wal-Mart’s “fresh audit” program uses a third party auditor who routinely checks on every store selling fresh produce. Simon said the auditor checks for quality and other specifications and scores the products according. He said if an auditor is checking tomatoes and three of them fail to meet the guidelines, that whole product group receives a failing score. If three different products fail, the entire store has failed.

“We are teaching the test and we expect them to pass. Our stores have a mid-90% pass rate,” Simon said, adding that the pass rate is 20% higher than the competition.

The results have meant improved comp sales of roughly 5.5% to 6% over the past two quarters. Comp sales in the fresh produce category rose from 1% to 6% in the year-over-year period, according to Wal-Mart.

HOME & APPAREL
Simon said the story of the year could be improving momentum seen in the retailer’s home and apparel divisions.

“We have always had strong basics and we continue add exciting national brands to our assortment mix. In the third quarter you will see Calphalon and Russell Athletics as two new brands. Russell athletic wear, new to the stores, is already selling very well,” he said.

The company also is offering Sealy mattress sets in a select number of stores. The product has been sold at Sam’s Club and online, but twin, full and queen mattress sets are now sold inside various supercenter locations.

When asked about its competitors, Simon praised Costco on its merchandising efforts, saying the retailer had long recognized the value of having veteran merchants. He said retaining retail experience is why Wal-Mart recently restructured the buyers’ salary and bonus incentives.

“It takes some time, particularly in the home and apparel categories to understand that those markets fully,” Simon said.

The buyers need to merchandise through several seasons, year over year to spot the trends, he added.

It was 12 years ago today that terrorists hijacked and crashed commercial airliners into the World Trade Center in New York, the Pentagon near Washington, and a field near Shanksville, Pa.

Close to 3,000 people died in the attacks of Sept. 11, 2001, which permanently changed the skyline of lower Manhattan and scarred the psyche of Americans and the world.

Groups across the Fort Smith area today (Sept. 11) remembered the lives lost, honoring their memories with moments of silence and ringing of bells.

In Fort Smith, Fire Chief Mike Richards lead the city's remembrance ceremony which started precisely at 9:28 a.m., the moment the north tower of the World Trade Center collapsed, filling the already smoky New York skyline with tons of soot, ash, melted metal and other debris.

"2,977 people died that day in the largest single foreign attack on American soil," Richards told gathered dignitaries and citizens. "We must never forget. Therefore today, we gather to remember and pay respect to them and the first responders to let the world know how the United States of American will always stand up for freedom regardless of the cost. For those that sacrificed their lives in the name of freedom that day, and the years to follow, we will honor them with a special tribute that is very special to our service."

As the crowd listened on in silence, a bell was rung to remember those who with "honor, pride and respect" died that morning, he said.

City Director Philip Merry was at the ceremony and while fighting back tears, recalled that even facing certain death, the passengers of United Flight 93 took a vote before deciding to challenge the hijackers and attempt to take back the flight.

"Two years ago, I went to the (Sept. 11) service in Shanksville by myself and just went up to take it in and you have recordings up there and testimonials and whatnot that prove that the people on Flight 93, it wasn't just (Todd) Beamer, (Mark) Bingham, (Tom) Burnett and others being a hero," he said. "(T)hey took the time to vote before they did it."

Merry, who is friends with Burnett's wife, Deena, who has since remarried and lives in Little Rock, said that one act should remind Americans not only on Sept. 11, but every election day, about the freedoms American citizens have due to ordinary citizens being willing to stand up and give their lives for the cause of freedom.

In Van Buren, remembrance ceremonies were planned for noon at the Crawford County Courthouse. At that ceremony, survivor Dale Brunk, who was on the 61st floor of Tower 2 during the attack on the World Trade Center, will share his experience of surviving the attack as well as his hope and vision for how the country can continue to move forward, according to an announcement from Van Buren's Heritage United Methodist Church.

While remembrances were held in the Fort Smith area, fewer – if any local government – remembrances were observed in Northwest Arkansas, according to several individuals who spoke with The City Wire.

Officials representing the cities of Bentonville, Fayetteville and Rogers all confirmed that no events commemorating the attacks of Sept. 11 were scheduled and a representative from the Bentonville Chamber said she was unaware of any events scheduled in Northwest Arkansas.

The only publicized event marking the attacks was a blood drive taking place at the University of Arkansas. It was sponsored by the group Muslims for Life. On the organization's website, the group said the event was a way to honor those killed on Sept. 11 and also to emphasize a key Islamic teaching.

"To honor the victims of 9/11 and to emphasize Islam's essential teaching regarding the sanctity of life, the Ahmadiyya Muslim Community USA is organizing its THIRD annual 'Muslims for Life' Blood Drive between August 11, 2013 and October 11, 2013," the organization said. Attempts to reach a local representative of the organization were unsuccessful.

Members of the Arkansas Congressional delegation took time to remember the victims today, with U.S. Sen. John Boozman, R-Ark., calling on citizens to reflect and remember.

“We cannot, and must not, let the years that have passed erode the memory of the 9/11 terror attacks. Let us use this day to reflect and remember the victims and the heroes who sacrificed tremendously to keep us safe in the aftermath. We will never forget.”

U.S. Rep. Tom Cotton, R-Dardanelle, recalled the bravery of the victims that day.

"Today we pause to remember the lives tragically taken from us twelve years ago. It is impossible for us to forget that day—the pain and sadness will forever be etched on our hearts. But we also remember the heroism and selflessness of those who put their lives in danger to help their fellow countrymen.  We remember our unity and our strength and our country’s great resolve."

Recalling the horror of that day, U.S. Sen. Mark Pryor said first responders should continue to be thanked for their selfless service.

“Like most Americans, I still remember that fateful day—seeing the smoke rise out of the World Trade Center, the Pentagon, and Flight 93 and witnessing the pain on the faces of Americans who had lost family members, friends, and colleagues. We saw true heroism that day—and in the days, weeks, and years following. Today, we thank the troops, first responders, and families who have sacrificed so much for our nation and those who continue to put their lives on the line for our freedom. We must never forget and we must continue to take steps to protect our homeland.”

U.S. Rep. Steve Womack, R-Rogers, offered his prayers to the victims and those who have died in the fight against terrorism since the morning of Sept. 11.

“Today, we remember the innocent Americans who died in the horrific terrorist attacks on September 11th and the heroes that on that day – and for the twelve years since – have selflessly and readily fought to defend our freedoms and our people.  My thoughts and prayers and those of a grateful nation are with them and their loved ones.”

For anyone who has ever been involved with filmmaking, the process often times is long and tedious with hours spent filming a single scene and months of editing. Not to mention the writing of scripts and securing capital just to be able to get the project off the ground.

But a group of Fort Smith residents, along with about 29 other filmmaking crews across the state, have turned the filmmaking process upside down with their participation in the 48 Hour Film Project.

The project pits teams of filmmakers against each other in an attempt to write, shoot, edit and score a movie – all in two days. No more. No less.

The project's website said the goal of the event is to promote filmmakers and also advance the art of filmmaking.

"Through its festival/competition, the Project encourages filmmakers and would-be filmmakers to get out there and make movies. The tight deadline of 48 hours puts the focus squarely on the filmmakers — emphasizing creativity and teamwork skills. While the time limit places an unusual restriction on the filmmakers, it is also liberating by putting an emphasis on 'doing' instead of 'talking.'"

Locally, groups competed in the Little Rock-area competition. The top films from each American competition site will be featured at an event in New Orleans next year called Filmapalooza. And though groups from around the world are competing in local competitions, only the best from the various worldwide locations will be chosen to compete for the ultimate $5,000 prize in at the Cannes Short Film Corner in Cannes, France, a city known the world over for its very own international film festival.

‘METAFLOOR’
In Fort Smith, a group of more than 20 individuals came together to compete, having to incorporate various components, according to Heather Carter, whose husband Jeff directed the final product, named "Metafloor."

"(It) had to have a plumber in the film named Annie or Andy Benoit, (it) had to have a horn of some kind visually in the film somewhere, (and it) had to have the line 'Tell me the truth' in the film somewhere," she said.

The film also had to be a science fiction flick, she said, adding that the group did not know any of what would appear in their film and what genre it would have to be until they picked up their information in Little Rock on Aug. 17.

So how does a group of actors, writers and cinematographers even begin to come up with a concept with so little to go on?

Charlie Ryan, an editor and director of cinematography for the short film, said the key to getting started was just figuring out what was available to the crew.

"The first thing you really have to think about is working around what you have. In a situation like that, you don't have time to put together a prop list and possibilities. You have to look at what you have," he said, adding that special effects and other features were not possibilities with only 48 hours to work with.

"The people in the room each had really good input and we each thought differently. Everyone brought something fresh to the table, especially (since) every (did not know) each other. It was really cool how it all worked together."

The group eventually decided on a short film that takes viewers on a journey.

"Metafloor is science fiction film about a man's elevator journey through the decisions he has made in his life," Carter said.

Ryan elaborated, saying that the film is about a man who makes a deal.

"He sells his soul and doesn't realize the consequences until it's too late," he said.

RAW AND INSPIRED
Levi Agee, the Little Rock City Producer for the 48 Hour Film Project and a programmer with the Little Rock Film Festival said the various films that result from the competition are unique stories moviegoers won't find anywhere else.

"I think it's a good display of all the ranges of talent in Little Rock and represents more than just filmmakers, but also hobbyists and people from all walks of life. You get a lot of good storytelling going on that you can't get in Hollywood or multiplexes," he said. "You can't get anything else like it anywhere else. It's raw. It's inspired. Despite the short time frame, there's a lot of effort and fun put into each project."

And even though each group only has 48 hours to create their film, Agee said the impact can go on for months, as happened with last year's winner, "La Petite More."

"(It) was about two singers who murdered their audience members who weren't paying attention. It was sort of a dark comedy, a music video done stylishly. It was a huge hit and I think the biggest reason was because a song performed in the film was extremely catchy. I remember people humming the song for months after it screened."

A FORT SMITH FILM FESTIVAL?
It is that kind of impact that the "Metafloor" crew, also known as the Fort Smith Mafia, is hoping to have when awards are given out Saturday (Sept. 14) in the three categories the short film are nominated in – best film, best cinematography and best editing. The award ceremony will be held in Little Rock. (Link here for the list of nominations.)

"Metafloor" Director Jeff Carter said competing this year was about more than winning a contest or awards. He decided to get involved in the competition as a way to bring awareness to filmmaking in Fort Smith and hopefully start a movement here at home, with the hope of bringing a film festival to downtown Fort Smith by Labor Day 2014.

It is projects like this that he hopes can bring a local interest to the field and make a festival next year a reality.

"We need a film festival in Fort Smith. We need to bring real actors, and Arkansas films, and we need to bring them to Fort Smith. That's what we need to do."

Foreclosure activity in Northwest Arkansas and the Fort Smith metro area was mixed in August, according to Irvine, Calif.-based RealtyTrac.

Benton and Washington counties had 136 foreclosure filings last month, down 28% from the prior month. Also In August, foreclosures rose 21% in Benton County from a year ago, while filings decreased 34% in Washington County compared to August 2012.

Jim Long, agent with Crye-Leike Real Estate, said the foreclosure listings have slowed somewhat in recent weeks. He said there are 373 foreclosed homes for sale in the Multiple Listing Service, which includes Northwest Arkansas as well as Crawford and Sebastian counties.

Foreclosure listings are down from 393 last month, but still considerably higher than six months ago, when the MLS showed 222 foreclosures for sale.

Long sald in the past 10 days there have been 44 new listings of foreclosure.

“The good ones are sold fast,” he said.

In the Fort Smith area, the two counties reported 30 new foreclosure listings in August. In Crawford County, the 7 filings last month were down sharply from July and 12% lower than a year ago.

Sebastian County had 33 new filings in August, up 37% from the prior month and year-ago period.

Statewide, foreclosure filings rose 16% from a year ago with 638 new cases reported in August. Arkansas ranked No. 33 in foreclosure activity, down several places from prior months.

Throughout the U.S. foreclosure activity taped downward in August, led by fewer starts which are triggered by defaults. RealtyTrac reported 128,560 U.S. properties were in one of the three phases of foreclosure last month. That equates to one in every 1,019 homes.

Bank repossessions rose slowly in the four counties covered in this report, following a national trend. Local real estate agents agree that banks are slowing putting their backlog of foreclosed properties on the market and expect this will continue into next spring.
 
“The foreclosure floodwaters have receded in most parts of the country, but lenders and communities continue to clean up the damage left behind, which means the recent uptick in bank repossessions is a trend that will likely continue into next year,” said Daren Blomquist, vice president at RealtyTrac. “Meanwhile foreclosure flash floods will continue to hit some markets over the next few months as delayed foreclosure starts are quickly pushed into the pipeline.”

Economists with Wells Fargo Securities give housing a positive outlook, diminishing the impact of foreclosures through 2014. They site low overall home inventories and pent-up buyer demand which is pushing home values higher.

Real estate agents across the region concur with the Wells Fargo positive assessment. In Northwest Arkansas, agents report strong sales, heightened activity which is producing multiple offers and higher overall prices. Realtor Clif Warnock, principal broker at Warnock Real Estate in Fort Smith, said the recent jump in local home sales was due to increasing interest rates.


"The difference has been movement in those interest rates. It's not been good that interest rates have gone up slightly, but any movement in interest rates prompt people to take action," he said.


With interest rates still near historic lows, many buyers are not only jumping due to the expected rise in interest rates, but they are also jumping to buy more home at a lower monthly cost, Warnock said.


The agents were quick to put the foreclosures into perspective as they make up just a tiny fraction of the overall markets in Northwest Arkansas and the Fort Smith metro area.


In the Fort Smith area 0.06% of the households are distressed and facing possible foreclosure. Sebastian County has roughly 54,200 households. In Crawford County that distressed rate was 0.03% of its 25,790 households.

Benton County reports 0.04% of its 92,000 households are facing foreclosure. In Washington County foreclosures accounts for 0.06% of 86,500 households.

The flat-to-downward trend continued into July for hospitality tax collections in Fort Smith and Van Buren, although sector employment was up in July compared to July 2012.

Collections in Van Buren during the first seven months of 2013 total $251,764, down 0.02% from the $251,824 collected during the same period of 2012.

July collections were $36,380, down 2.6% from the $37,339 in July 2012. The city collects a 1% tax on lodging and a 1% prepared food tax.

“July numbers were significantly off from July of last year. Restaurant numbers are off by about 1% from last year and deli and convenience store prepared food sales are off by 4%,” said Maryl Koeth, executive director of the Van Buren Advertising & Promotion Commission.

However, hotel receipts were up 3.75%.

“People are still traveling, but are eating out less and not spending as much at fuel stops on food items. This has been the trend for most of 2013 and I see no indication that this spending pattern will change for the remainder of the year. I think the fall travel season will see a slight increase in the number of vacationers, but again their spending will be on the light side,” Koeth explained.

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

FORT SMITH
Collections in Fort Smith for the first seven months of 2013 totals $439,845, down 3.1% compared to the same period in 2012. The year-to-date decline has improved through the year. The first quarter collections were down more than 6% compared to the 2012 quarter.

July collections were $69,254, up 1.2% compared to July 2012. The city collects a 3% tax on lodging.

Claude Legris, executive director of the Fort Smith Convention & Visitors Bureau, said it was the best month of collections for the year. The July revenue was supported by two large Jehovah’s Witnesses conferences, the AME 12th District Youth Conference and the Arkansas Sheriff’s Association annual convention.

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

TOURISM EMPLOYMENT, ARKANSAS COLLECTIONS

Employment in the region’s tourism industry was 9,500 during July, down from 9,600 in June and above the 9,100 in July 2012. The sector reached an employment high of 9,800 in August 2008.

Average monthly employment in the Fort Smith metro tourism sector ended a two year decline in 2012. During 2007, 2008 and 2009, the average monthly employment was 9,300. That fell to 8,700 during 2010, 8,500 during 2011, but rose to 9,000 during 2012. The sector reached an employment high of 9,800 in November 2008.

Arkansas’ tourism sector (leisure & hospitality) employed 101,500 during July, down from revised 102,000 during June, and below the 102,100 during July 2012. At a revised 103,700, January 2013 marked a new employ

Arkansas’ 2% tourism tax receipts totaled $6.287 million for the first half of 2013, up 1.9% compared to the $6.169 million during the same period of 2012.

Arkansas’ 2% tourism tax receipts totaled $12.405 million during 2012, up 3.16% compared to the $12.025 million during 2011. The gains marked the third consecutive year of improving tourism tax revenue and was a record total for the tax.

Sustainability has been a major platform for retail giant Wal-Mart since 2005 and the company continues to enlist the help of suppliers to move the needle.

Wal-Mart on Thursday (Sept. 12) held its annual Global Sustainability Milestone meeting in Bentonville and presented nine initiatives that have raised the company’s overall sustainability index reading by 12% in the past year. Duncan Mac Naughton, chief merchandising officer for Walmart U.S., said the retailer couldn’t make that kind of progress without the help of its suppliers.

Wal-Mart CEO Mike Duke said the company is working with about 1,000 suppliers in categories on various sustainability initiatives. But by the end of 2014, he said participation would be broadened to include 300 product categories and engage up to 5,000 suppliers around the world.
 
Wal-Mart rolled out its sustainability index in 2009, a measurement system used to track the environmental impact of products. Last year the company provided sustainability guidelines for 100 categories and Thursday’s meeting was a chance to recap the progress since that time. Wal-Mart said its general merchandise department has improved its index product sustainability score by an average of 20%, while grocery moved up 12%.
 
“With the sustainability index, Wal-Mart is applying the science and research that we’ve developed to create a more sustainable supply chain globally,” said Kara Hurst, CEO of The Sustainability Consortium.

Nine groups spoke at Thursday’s meeting, touting their progress in sourcing sustainable products while working together with suppliers to innovate new packaging, reduce chemicals used and facilitate more recycling – all of which are better for the environment. High on the list is a broad range of recycling activities as more than 29 million tons of valuable plastics are sent to landfills every year in the U.S. at a cost of about $6.6 billion annually.

Coca Cola has found a way recycle more of its plastic bottles like the holiday ornament cola bottle which was discontinued last year because it could not be recycled. The beverage giant said the shrink wrap label rendered the bottle as non-recyclable. This year that product will be back because they have found a way to perforate the label so it breaks away from the bottle during recycling.

A team from Hanes said it plans to be a “zero landfill” company by 2020 as it continues to source recycled materials for the products it makes, such as tee shirts and fleece sweatshirts and bottoms. Hanes officials said 5% of the content found in fleece or cotton tee shirts sold at Wal-Mart comes from recycled plastic bottles. The company also works with farmers who employ sustainable practices such as growing switch grass which also goes into cotton garments.

Other U.S. suppliers presenting at Thursday’s meeting included Kellogg's, Crayola and Technical Consumer Products — the supplier for private label “Great Value” light bulbs for Wal-Mart.

The retailer said that by the end of 2017, U.S. Wal-Mart and Sam's Club stores will get 70% of their goods from global suppliers that use its sustainability index. This ambitious agenda by Wal-Mart has been scrutinized heavily by analysts and other sustainability experts.

Jason Long, a supplier consultant in St.Louis with Shift Marketing Group, said Wal-Mart has put some teeth into their sustainability efforts by doling out performance objectives, but there is still a lot of confusion in the supplier community, particularly among small-to-midsize firms.

“Wal-Mart hasn’t done a good job of explaining the sustainability scorecard to its vast supplier base. I’m hearing more and more from suppliers who are trying to understand and demystify the sustainability scorecard requirements and that process,” Long said.
 
Retail sustainability expert Stacy Mitchell said Wal-Mart pivoted to the supplier emphasis in the last year or so while other goals once stated where abandoned. Mitchell is a research analyst at the Institute for Local Self Reliance in Portland, Maine. She said Wal-Mart does a great job picking certain areas to focus on, but avoids issues like responsible land use as it continues to build sprawling, single-story structures five miles within its other stores.

Mitchell said there is still lots of room for improvement in Wal-Mart’s own sustainability goals but it may be easier and cheaper for the retailer to shift more focus on the supply chain for which they can take also credit.

Alisha Staggs, a project manager at the Environment Defense Fund in Bentonville, said in a May blog that the retail giant’s sustainability index requirements were an ambitious goal, noting that there would likely be some who “think Wal-Mart is taking this too far.” Staggs noted EDF is onboard with Wal-Mart’s sustainability index goals, and believes the Wal-Mart push will help achieve the kinds of transformational change needed.

“With over 100,000 suppliers, Wal-Mart has the ability to use the Sustainability Index to move entire industries to go beyond what is required by law, benefiting consumers, workers and the planet,” she noted.

Wal-Mart said the sustainability goals are being expanded across its global operations. Walmart Chile, Mexico will launch the index in their markets in 2014. South Africa’s Massmart has already begun to include key index questions in its supplier sustainability surveys.

“We’ve reached an acceleration point where we are moving from measurement to results. We’re starting to really drive progress with the index,” Duke said. “This is about trust and value. Using less energy, greener chemicals, fewer fertilizers and more recycled materials – all of this – is the right thing to do for the planet and it’s right for our customers and our business.”

Simmons First National CEO George Makris said the $53.6 million bid for Metropolitan National Bank was grounded in thorough due diligence conducted by 10 of its veteran loan specialists who spent four days combing through the bank records.

He said the deal was financially attractive on several levels, with expectations of 25% earnings per share accretion in fiscal 2014 and 35% by 2015 after the first full year conversion. The internal rate of return for this deal is a projected 27% with a three-year payback.

There is no expected headwinds from federal regulators, and Makris expects the merger to close by the end of this year. He said at that point there will be branch consolidation in both Northwest Arkansas and Little Rock. He said the banks’ staffs will work together between now and the end of the year to assess the best course of action for the branch consolidation.

“It will be at least April of next year before we could do that, because we have to wait for the merger to close and then give 90 days notice to the customers at those closing branches.” Makris said during the Thursday afternoon’s conference call.

The $53.6 million in cash will go a long way in repaying the creditors listed in Rogers Banchsares’ bankruptcy. The most recent schedule on file with the federal court noted the bank holding company owed $52.938 million to several institutions who provided capital to Metropolitan in recent years.

Not named as a creditor is the U.S. Treasury who made $25 million available to Metropolitan National in exchange for preferred shares in the holding company as part of the TARP program. That is money that will not be recovered by U.S. taxpayers.

Simmons projects a one-time merger cost of $8.8 million related to court fees and other acquisition charges.

Makris also said the Simmons Northwest Arkansas bank charter would be consolidated with the Pine Bluff charter once the deal is complete, giving Simmons seven bank charters in all.

The win for Simmons is a major boost in deposit marketshare in the Little Rock and surrounding market. The pro forma bank will top $1.032 billion in deposits in the Little Rock metro area, some 7.4% of that marketshare. This will rank them fifth behind First Security Bank and one spot ahead of Arvest.

Statewide, the pro forma bank will have $3.457 billion in deposits with 6.49% of the marketshare. This ranks them fourth behind the pending Home Bancshare/Liberty consolidation, Regions and Arvest.

“Metropolitan has a strong brand with some 90,000 retail customers in the state’s two largest markets,” Makris said. “We look forward to merging these two banks.”

He said Metropolitan is roughly half the size it was a few years ago as the bank had no choice but shrink itself in light of capital shortfalls. However, the bank was still able to hold on to a loyal customer base, which speaks highly of a well-qualified staff. Makris said Simmons is solidifying the capital needs of Metropolitan with this acquisition, but more importantly, “we want those sales people to be able to hit the road and build that business back up again.”

Together the bank will have $2.376 billion in loans producing a yield of 6.01%. Prior the merger, Simmons portfolio is yielding 6.27% against Metropolitan’s yield of 4.98%.

Simmons also will pick the management of $370 million in trust assets, according to the supplemental documents provided by Simmons on Thursday.

Makris the capital ratios for the pro forma bank is a Tier 1 leverage ratio of 8.03%. The risk-based capital ratio will be 13.38% with the total risk-based capital ratio at 14.45%.

He said stock buybacks are on hold at this time, as the holding company will focus on this merger.

Simmons projects a cost savings of $15 million when the merger is completed. He said FDIC insurance cost savings will be roughly $1.6 million, while reduced legal fees and IT expenses will save $2.4 million. Makris said those savings will be phased in at 60% this first year and 100% thereafter. He expects Simmons will see the full benefit in the third quarter of 2014.

Garland Binns, an attorney with Dover, Dixon and Horne, said acquisition though bankruptcy proceedings are fairly rare, citing about 10 in the U.S. overall. Binns applauded the Simmons purchase as a great deal for both banks as well as a way to help the creditors listed in the bankruptcy regain a fair amount of the money they are owed.

He said Metropolitan worked together with the Ford Financial Group to get the ball rolling, and it is highly unusual for an outside bidder to stake their claim. But in this case the higher bid offered by Simmons, someone who already knows the market, looks like the best deal possible.

In the five years through 2013, revenue for China’s poultry farming industry has grown at an average annualized rate of 7.7% to $75.3 billion and two U.S. meat giants are in the thick of it. Tyson Foods and Cargill each want their share of this burgeoning market expected to produce 20 million tons of chicken this year with revenue growth of nearly 10%, according to IBIS World.

The research firm anticipates over the next five years this industry transitioning to vertical integration will mature with revenue of $105.8 billion as China’s 1.3 billion consumers eat more chicken. In vertical integration the poultry company controls the chicken from the egg though processing and contracts with growers who house the birds during their maturation phase which is typically 47 to 50 days.

TYSON’S VENTURES
Springdale-based Tyson Foods has worked toward complete vertical integration of its China operations for more than a year. It's a move the company said will improve food safety standards in China while also helping grow topline sales.

Tyson CEO Donnie Smith recently said that roughly 50% of its chicken business in China is vertically integrated, and by the end of 2014 it should reach 100%.
 Tyson operates three ventures and employs about 4,300 people in China. The first venture, established in 2001,Tyson Dalong Food Co., operates two modern processing plants and a separate marinating facility.

In 2008, Jiangsu Tyson Foods Co. was formed near Shanghai, which is a fully integrated poultry complex where the company is sharing food safety and efficient processing methodology with Chinese consumers.

In 2009, Tyson acquired a majority interest in three poultry plants in the Shandong province. In 2011, Tyson purchased the remaining 40% bring the company’s total investment of $115 million with another $93 million for capital needs. Those facilities are known as Tyson Rizhao and Tyson Weifang.

Tyson Rizhao is a fully integrated poultry complex located in Juxian Industrial Park. Earlier this year, Tyson said it sold Welfang, one of its smaller chicken operations that processed fully cooked chicken products and exported to Japan and Korea.

Smith said the investment needed to bring Weifang inline with Tyson’s operational goals was too great and the best alternative was to sell it.

In China, Tyson processes chicken sold wholesale into food service for clients such as Yum Brands! and McDonalds as well fresh chicken sold in retail groceries like Wal-Mart and Sam’s, extending those longtime U.S. relationships abroad.  

Tyson said it is processing about 1.3 million birds per week with a goal  to reach 3 million per week by late 2014.
 
“We’re expanding the volume of company-controlled birds we produce for our poultry operations.  This includes both company-owned birds raised by contract farmers and company-owned birds raised on Tyson-owned and operated farms,” Tyson spokesman Gary Mickelson said.

CARGILL CHICKEN
Like Tyson, Cargill has made substantial investments in China. Known for beef and turkey in the U.S., Cargill stretched its wings into chicken production with a $250 million green field investment last year in Anhui, China.

The large broiler facility includes a feed mill, farms, hatchery and processing plants, according to Michael Martin, Cargill spokesman. He said the facility will raise 65 million birds a year, one of the largest integrated plants in China when production is running a full capacity in the next couple of years.

Construction was completed this summer and production kicked off last month. The chicken raised by Cargill’s China operations are being sold via food service channels. The company estimates by 2015 the complex will employ 3,500 people.

“In a country that consumes about a third of the world's animal protein, we believe the product quality and integrity made possible through this model operation will help build confidence in China's food supply,” Cargill noted in a release.

Cargill said China’s chicken industry is beginning to modernize, much like the pork sector did 20 years ago.

FOOD SAFETY
The timing for Tyson and Cargill couldn’t be better given that China’s image has suffered from multiple food safety gaffes in recent years and these two International meat companies have strong food safety records, analysts said.

Earlier this year an Avian Influenza outbreak known as the H7N9 virus, devastated flocks, sickened more than 100 people and caused more than $6.5 billion in losses to China’s economy. Smith said the outbreak was troubling and detrimental to protein consumption in the short run. However, he said the unfortunate event had “absolutely validated our model for extreme biosecurity.”

Smith said, while many chickens in China are still raised by small farmers, Tyson is bringing technology and practices common in the U.S. to the Asian country. To keep birds healthy, Tyson uses ventilation systems in the houses, mills its own feed, controls access to farms and requires anyone entering or leaving the buildings to shower, he said.

Customers in China are willing to pay more for added food safety Tyson provides, he added.

Martin said the Chinese government continues to encourage the modernization of the poultry supply chain, including the construction of modern housing complexes, in order to improve food safety and disease prevention.   

While China’s consumers are receptive to these brands, Tyson and Cargill each said expansion there has had its challenges.

Mickelson said the acquisition of land rights is vital for Tyson’s ability to expand and is not a simple process. He said Tyson has received great support from local and provincial governments in their efforts to virtually integrate all of their operations in China.

Martin said Cargill spent a considerable sum constructing roads and bringing the power infrastructure into Anhui before they could began building their complex operations.

Despite some hurdles, Tyson and Cargill are confident their recent and ongoing investments in China will pay off. Much of the growth will come from the burgeoning quick service restaurants (QSR) sector and emergent frozen/processed food sectors. QSRs are the major driving force for poultry demand thanks to a double-digit growth rate and menus biased to poultry, according to IBIS World.

YUM Brands and McDonald’s are the two fastest growing QSRs in China. Each have publicly said in recent months their business in China has been adversely impacted because of the food safety gaffes in the country’s poultry industry.

Tyson said chain restaurants are opening in China at a rate of more than 1 per day, which provides a substantial opportunities for them and other U.S. companies.

“China remains one of our key markets for international growth ... Per capita poultry consumption in China is lower than it is in the U.S.; however, when you consider the overall size of the population in China, any increase is substantial,” Mickelson said.

Tim Ramey, an industry analyst for D.A. Davidson, said American processors like Tyson have a great story to tell about what they are doing to advance food safety practices in China.

For the first time in seven years, the Democratic Party of Arkansas on Saturday (Sept. 14) held their quarterly state committee meeting in Northwest Arkansas. The meeting, held at the Northwest Arkansas Convention Center in Springdale reflected on the past while also looking to the future with the election of Vincent Insalaco as DPA chairman, replacing Will Bond as the party looks to the 2014 general election.

In accepting the chairmanship, Insalaco was clear that he was planning on giving Republicans the fight of their lives as Democrats fight to regain control of the General Assembly, which the Republican Party won control of during last year's election for the first time since Reconstruction.

"They haven't won by talking about social security. They haven't won by talking about Medicare or Medicaid. And if we allow them to do it again it's our own fault, and I'm not going to have anything to do with that," he said.

Insalaco said the key to a Democratic victory next year will be localizing the elections to issues being faced by citizens and communities across Arkansas, not talking points handed down from out of state interests in Washington, D.C.

He also said that he fully expects outside interests to attempt to buy the election for Republican candidates.

"We also have to recognize that we're going to get outspent, a lot, and not by money from Arkansans. Do you honestly think all that money's coming in here from Washington because they give a damn about our people? We have got to collectively recognize that this is going to be a battle and it's going to require a huge ground game."

Speaking about his time as chairman, Bond said that he was proud of his time as chairman, marking a little over two years in the top job.

Bond recalled taking the job with a lot less experience than Insalaco, who has been involved with Democratic politics for decades. But he despite his lack of experience compared to other chairmen past and now present, he was able to lead the party to a smaller loss in 2012 than was experienced with what was known as the Republican wave of 2010. Something he said was due to the hard work of the DPA staff.

"It takes a tremendous amount of personal commitment and they're all underpaid and they're all over worked and my thanks goes to them. … thank you," he told the staff and members of the parties as he began to choke up.

This morning's meeting also saw many political speeches, including one by former U.S. Rep. Mike Ross, D-Prescott, a candidate for governor who is started to come out even harder against presumed Republican nominee Asa Hutchinson, a former 3rd District Congressman and a former undersecretary of Homeland Security during the administration of President George W. Bush.

The attacks this morning attacked what Ross said were Hutchinson's "flip flops" on several different issues.

"We don't need a governor who's going to take us backward. We don't need a governor who's going to flip flop on issues. Asa has already flip flopped on the private option, on taxes, on minimum wage. If you think about it, it's a good thing that he spells his name A-S-A frontward and backward because he flips flops so much," Ross said to a raucous crowd.

Following the state committee meeting in Springdale and the Razorback-Southern Mississippi football game in Fayetteville, many of the candidates for statewide Democratic office made their way to the tiny town of Little Flock in Benton County for the annual Democratic picnic, which Benton County Democratic Central Committee Chairman Mike Brown said was in its 47th year.

The event gave candidates a chance to meet personally with constituents in a county many consider safe Republican territory, an assumption Brown took challenged.

"We had more votes for Mike Beebe than any other county except Pulaski County, so there are a lot of Democrats up here but the population has grown," he said, adding that the influx of vendors and others from out of state working at Walmart and their vendors should continue to alter the political makeup of Benton County.

One of the candidates to meet with voters was Rep. Nate Steel, D-Nashville, the presumed Democratic nominee for attorney general. Steel said the position of attorney general is one that he viewed as a more non-partisan position, working for all Arkansans instead of for a single group.

"I'm certainly proud to be a Democrat, but I've worked across the aisle a lot during my legislative time and I've always prided myself on doing what I think is right regardless of what party leaders or the politics of the situation may be," he said.

He said it also takes someone who can call "balls and strikes" when you see them regardless of what the politics may be.

Highway Commissioner John Burkhalter, who is the presumed nominee for lieutenant governor, said he was concerned about current ethics issues facing Lt. Gov. Mark Darr, who dropped out of the race for Congress in the 4th District after only 17 days following revelations first made public by the blue Blue Hog Report which highlighted questionable spending by Darr's 2010 campaign for the office, including clothes purchases labeled as "supplies."

Burkhalter said that the Ethics Commission should have the ability to do more auditing, instead of relying on the current complaint-driven model.

"I think it would give us the opportunity to find issues and problems and possible patterns of abuse early on instead of later. And I think it's extremely important for anyone that serves the public that they need to have extremely high ethics," he said. "I think people make mistakes. Legitimate mistakes. But repeated violations, repeated issues. We need the ability to audit that and improve on this system."

A $15.5 million grant from a Siloam Springs-based foundation will help the University of Arkansas at Fort Smith construct a 58,000-square-foot visual arts building that will include a 150-seat film theatre.

The grant from Windgate Charitable Foundation requires UAFS officials to match dollar-for-dollar $2.5 million of the grant. Dr. Marta Loyd, vice chancellor for university advancement, said the UAFS Foundation will raise the $2.5 million for a building endowment, according to the UAFS statement released late Tuesday (Sept. 17) afternoon.

The UAFS Foundation recently announced it had raised $56.895 million as part of its “Giving Opportunity” capital campaign.

The UAFS statement also noted that Little Rock-based CDI Contractors will be the construction manager, with Little Rock-based WER Architects hired as the facility designer. The new facility will be located on the southwest corner of Waldron and Kinkead and is bordered by the Stubblefield Center, The Lion’s Den and Baldor Technology Center. A parking lot completed two years ago will serve the new building.

Scheduled for completion by the fall of 2015, the building “will also house gallery spaces, the letterpress and printmaking operation, graphic design laboratories and spaces for photography, painting, sculpture and art history,” noted the UAFS statement. “The freshmen foundations program – which includes basic courses in drawing, 2D design, 3D design, typography and digital imaging – will also be housed there.

“Our campus has long needed a building designated for these programs,” said UAFS Chancellor Dr. Paul Beran. “This will provide our students with arts-related classrooms and studios in a purposefully designed facility, bringing a cohesiveness to the visual arts programs for students that has not been physically possible with varied locations.”

Beran said the need for a visual arts building arose during discussions for a new campus master plan.

“It’s time to move forward and provide new, quality space to house these visual arts programs, but we also see this facility as one that will further enhance the University’s role in the arts in this region,” Beran noted in the statement.

Beran told The City Wire that “anonymous sources,” who believed in “what we were doing to enhance the quality of life” in the region, helped facilitate the connection with Windgate. Beran added that the arts faculty over several decades at then-Westark Community College and now UAFS have been "very successful in that area (arts studies) in a real understated kind of way.”

Having the funding and support come together was a well-deserved recognition of the consistency of the arts programs, and also humbling, Beran said.

“It just creates this phenomenal opportunity to bring this (arts programs) all together under one building. ... Whenever you get this kind of gift, you’re really amazed at the philanthropy of others,” he explained.

According to the UAFS statement, there are now enrolled about 120 graphic design majors and 50 studio art majors, “with hundreds of students on campus served by the general education courses which will be offered in the new building.”

Dr. Henry Rinne, dean of the College of Humanities and Social Sciences, said the facility will also support community programs.

“This new building will become a center for the arts, with three major galleries to showcase our student work as well as art shows of regional and national importance. We will also be able to expand and offer additional workshops that are open to the community.”

According to information from the Association of Public Television Stations, the Windgate Charitable Foundation “supports programs focused on strengthening marriage and healthy relationships, serving children and providing Christian higher education. The Foundation also supports programs focused on arts and crafts, as well as on art history.”

The latest twist in the saga resulting from Whirlpool's disclosure that it contaminated its manufacturing site and a surrounding neighborhood with trichloroethylene (TCE), a potentially cancer-causing degreasing chemical, has arrived as attorney Ross Noland of Little Rock-based McMath Woods Law Firm filed amended lawsuits against both the company and plant manager Kenneth Thompson on behalf of 26 plaintiffs.

The original complaint prepared in May did not include Thompson, but the amended complaint filed with the Sebastian County Circuit Court on Sept. 11 says that the former plant manager oversaw "illegal" actions involving the TCE plume.

"Mr. Thompson has supervised the day to day operations of the facility in recent years, including illegal and negligent operations which resulted in, or further exacerbated, the TCE plume," the complaint reads, adding that Thompson is still responsible for environmental compliance at the now-shuttered Fort Smith facility.

The lawsuit goes on to allege in detail that Thompson's actions furthered the damage already done at the site along Ingersol Avenue in south Fort Smith.

"Defendant Kenneth Thompson had a duty to inspect and maintain the facility, prevent spills and releases of TCE, discover and delineate the TCE plume, remediate the TCE plume, prevent the spread of the TCE plume, and warn or inform of the TCE plume. Mr. Thompson breached his duties described above. Defendant Kenneth Thompson was, and is, in a position of corporate responsibility at the facility with the ability to influence corporate policy and unlawful corporate actions, and, as such, his actions or inactions partially facilitated the existence and extent of the TCE plume."

Calls to phone numbers listed for Kenneth Thompson were not answered.

Noland said Thompson was included as a defendant in the amended lawsuit due to a clause in the Arkansas Solid Waste Act.

"He's the one responsible on site, so that's why we've made a claim using the responsible corporate officer doctrine," he said.

The lawsuit also includes alleged timelines for when the pollution started and when remedies first started to take place, placing the first use of TCE at the facility in approximately 1967. It was alleged that Whirlpool and Thompson first learned about the TCE plume when removing an underground petroleum storage tank in the 1980s.

Also included in the lawsuit is an allegation of the use of another potentially harmful chemical.

"Defendants used, and released, other chemicals from the facility to the groundwater, including, but not limited to tetrachloroethylene, which is also known as PCE."

According to the Wisconsin Department of Human Services, the chemical can "cause liver cancer, kidney cancer and leukemia in laboratory animals."

"Liver and kidney damage has been noticed among exposed workers," the Wisconsin DHS added on their website.

The lawsuit is two different suits – one representing business interests with damages and another representing home owners in the plume area.

The suits seek damages for "the reasonable expense of necessary repair and restoration of their properties to their pre-release condition, including potential costs associated with monitoring and evaluation, rental values, and the difference in the values before contamination and the value after restoration. … Plaintiffs are also entitled to damages for the loss of use and enjoyment and deprivation of the truth worth and value of their properties, including discomfort, annoyance, disruption, inconvenience, loss of peace of mind, fear, and fright resulting from the TCE plume and contamination."

The suits also seek punitive damages "because the defendants knew or ought to have known, in light of the circumstances, that TCE could naturally and probably result in a groundwater plume and damage to plaintiff's properties."

Noland said a response from Whirlpool has not yet been received. His previous filings were never responded to as the lawsuits were amended to add additional plaintiffs and Thompson as a defendant, therefore Whirlpool was never officially served with the suit.

A call to Whirlpool's media relations department was not returned. Whirlpool officials have previously said they will not respond to The City Wire requests for comment or information.