Whirlpool on Thursday (Jan. 16) released its annual report detailing the early stages of the cleanup trichloroethylene (TCE) at its former manufacturing facility on the south side of Fort Smith. TCE, a known carcinogen, had been used as a degreasing agent at the facility until the 1980s.

The annual report is the first released by the company as required by the Arkansas Department of Environmental Quality (ADEQ), which made it part of its final Remedial Action Decision Document (RADD) for Corrective Action. The RADD dictates how Whirlpool will cleanup pollution not just at its former manufacturing facility, but also in areas including a neighborhood that lie above a plume of TCE that leaked north of the facility.

The annual report, attributed to Jeff Noel, Whirlpool's corporate vice president of communications and public affairs, outlined the companies remediation efforts to what had occurred in 2013 and what is planned for 2014.

Much of the information from 2013 used the talking points the company has presented to the public previously (quoting from the document):
• Whirlpool reaffirmed its committed to remain in Fort Smith, working with area residents, the Directors and staff of the City of Fort Smith, the State of Arkansas and ADEQ until this situation is resolved.

• All 2013 monitoring activities continue to confirm there is no public health risk, no reason for public concern about vapor intrusion into any residence, and that the boundaries of the TCE plume have no expanded in eight years.

• Whirlpool took a series of steps under supervision from ADEQ to advance the project forward in 2013. This included semiannual groundwater monitoring in March and October, finalization of the Human Health Risk Assessment (HHRA) and the Risk management Plan (RMP), submission of the draft Final Remedy Work Plan (Work Plan) to implement the RMP, and commented design data acquisition for effectively implementing the remedy defined in the Remedial Action Decision Document (RADD).

• Whirlpool initiated extensive communication efforts to keep the community informed of important developments, including a new website devoted to this project, participation in two public meetings with the Fort Smith City Directors, and individual conversations with residents who contacted us directly with concerns or questions.

• Whirlpool will continue to push forward in 2014 with the implementation of the RADD issued December 27, 2013 by ADEQ with the most scientifically proven, effective manner possible. At each step along the way, we will continue the efforts initiated in 2013 to keep the Fort Smith community informed.

Noel also said his company, working with environmental consulting firm ENVIRON, had completed pre-design work on ways to implement the requirements of the RADD.

"The pre-design field work took place in September and December 2013. The goal of the pre-design field work is to complement the current site understanding in the source and treatment areas," he said. "The targeted investigative activities will provide a strong foundation for the development and implementation of a successful, full-scale system design to meet the requirements of the RADD."

There was less detail about the company's plans to comply with the recommendations of the RADD in 2014, stating that it would submit its work plan to ADEQ for approval "within 30 days of the approval of the Final RADD,"which was effective Dec. 27, 2013.

"Within 30 days of the approval of the Final RADD, Whirlpool will submit a revised Work Plan to ADEQ detailing how the remedy will be implemented and the schedule for completion," Noel said. "In addition, we will provide ADEQ quarterly reports on our progress that will be publicly available on our website."

Noel also noted the continued marketing of the Whirlpool site to potential buyers. News broke in October 2013 that Spartan Logistics would occupy about 100,000 square feet of the more than 600,000 square foot warehouse and distribution facility near Whirlpool's large manufacturing plant, leaving a lot of the former facility available for development.

"In light of the many attractive attributes of the property, including size, location and amenities of the 167 acre parcel, we remain confident in completing a transaction that will result in long term and productive development on the parcel."

The RADD states that Whirlpool must begin remediation within 60 days of the effective date (Dec. 27) of the RADD and file quarterly reports every Feb. 15, May 15, Aug. 15, and Nov. 15 as well as annual progress reports on Jan. 15.

Year end figures for Fort Smith area home sales posted mixed results with Crawford County continuing a slide in home sales while Sebastian County posted double-digit growth during 2013.

Starting with the month of December, Crawford County posted a decline of 6.24% in home sales value, with only 44 sales in the last month of 2013 worth $4.375 million versus 36 homes sold in December 2012 worth $4.666 million.

It was the exact opposite story in Sebastian County, which saw an increase of 16.22% in December 2013 with 94 homes sold at a value of $13.457 million versus 87 homes sold in December 2012 with a value of $11.578 million.

Looking at all of 2013, 515 homes were sold at a value of $57.039 million in Crawford County. The number represents a drop of 5.22% from 2012's total of $60.179 million.

Sebastian County saw 1,220 homes sold during 2013 with a total value of $168.405 million, a 10.06% increase from 2012's total of 1,114 homes sold for a value of $153.012 million.

Linda Spradlin, principal broker at Assurance Realty in Fort Smith, said Sebastian County's rise during the last year could be tied to the improving economy in the region.

"Well, Sebastian County has brought in a few more businesses than Crawford County," she said. "With our hospitals, HMA (Health Management Associates) and Mercy growing, they have produced more buyers."

She also pointed to an expansion of jobs at Baldor as being a sign of a strengthening economy, resulting in customers having higher discretionary income to spend on items such as real estate.

"Even though they (Baldor) brought in some (new) people, they also (have current staff) getting better jobs, so they can move up. So our sales may be up 10%, but it may not really identify that we really have that many more people moving into the area," Spradlin said. "It could mean that we just have existing people who are getting better, higher paying jobs and they are able to improve their living standard."

As for Crawford County's downturn, Spradlin said while it was hard to determine the exact cause of the 5.22% decline in home sales, uncertainty about the future of the USDA's rural development loan program had been hanging over the county for much of the latter months of 2013, affecting sales in the county's largest city of Van Buren, which is approaching the maximum population for participation in the program. Proposals to include an increase in population from 25,000 to 35,000 for eligible communities has not yet been able to pass the U.S. Congress as part of a larger Farm Bill.

"I don't know where we stand (as far as the status of rural development loans), but that definitely hurts Crawford County. That hurt us a bit, too. Not in Fort Smith, but in the outlying areas like Greenwood and Hackett."

Spradlin said while Sebastian County's numbers looked strong for last year, one area that continued to be a drag on the market in 2013 were foreclosures. Even though the number of foreclosures in the Fort Smith market declined last year, she said it likely still effected sale prices for new and existing homes.

"That would have a direct impact on those home sales. You know, appraisers — even though they say they don't use foreclosures heavily — it has to effect their judgment at some point if they put that in as a comparable."

The median sale price in Sebastian County declined 1.71% from 2012 to 2013, with 2013 posting an MSP of only $115,000 versus 2012's MSP of $117,000. Crawford County's MSP fared worse, falling 6.67% from $112,500 in 2012 to $105,000 in 2013.

As for what 2014 holds, Spradlin said buyers and sellers should expect a solid year should Fort Smith continue its trend of job growth and falling unemployment.

"It's sort of like with the whole economy thing," she said. "We were slow to get into the recession and we'll be slow to come out. ... I think the future is going to be dictated, pretty much, by our past. It means slow, moderate growth."

Home Sales Data
(January - December)
• Crawford County
Unit Sales
2013: 515
2012: 502

Total Sales Volume
2013: $57.040 million
2012: $60.179 million

Median Sales Price
2013: $105,000
2012: $112,500

• Sebastian County
Unit Sales
2013: 1,220
2012: 1,114

Total Sales Volume
2013: $168.405 million
2012: $153.012 million

Media Sales Price
2013: $115,000
2012: $117,000

A legal turn for same-sex marriage, Coon Supper politics, shuffling money for a sports complex and the push for a third high school in Fort Smith are part of the Jan. 17 Friday Wire for the Fort Smith region.

NOTES & ANALYSIS
• Gay-marriage ban
A ruling this by a Federal Judge in Oklahoma that overturned a voter-approved amendment banning same-sex marriage generated a lot of national attention. U.S. Senior District Judge Terence Kern, based in Tulsa, said the gay marriage ban approved by voters in 2004 violated the U.S. Constitution's 14th Amendment under the equal protection clause.

Don’t be surprised if Arkansas’ voter-approved ban on same-sex marriage experiences the same fate. This highly divisive issue will likely be a talking point at all ballot levels in the 2014 election cycle, even though the U.S. Supreme Court may have the final say on the issue.

• The Wright move
The folks at Crystal Bridges Museum of American Art have cranked out pleasant surprises on a regular basis from the day the museum was first announced. But deconstructing and moving a Frank Lloyd Wright-designed home almost 1,100 miles from New Jersey to the museum grounds in Bentonville will be hard to top.

The home, built in 1954 and known as the Bachman Wilson House, will be placed near the museum along its 3.5 miles of trails and 120 acres, with views overlooking the native woodlands and the Crystal Spring – the natural spring from which the museum takes its name. Plans are to begin site prep in the spring and have the house move completed by early 2015.

One of these days, the folks at Crystal Bridges are going to mess up and create a world-class museum that draws millions of visitors. Oh, wait ...

ICYMI
Following are a few stories posted this week on The City Wire that we hope you didn’t miss. But in case you missed it ...

• Sports complex money
The on again, off again River Valley Sports Complex project appears to be back on again following a study session of the Fort Smith Board of Directors on Tuesday (Jan. 14). But how the project will be constructed may change following disagreements during Tuesday's study session about the use of engineering firms for the project.

• An early primary fight
The region appears to have a major primary shaping up as Rep. Terry Rice, R-Waldron, announced Tuesday (Jan. 14) that he would challenge Sen. Bruce Holland, R-Greenwood, for the District 9 Senate seat.

• Political money haul
Former U.S. Rep. Mike Ross' campaign is starting to sound like a broken record after the presumptive Democratic nominee for governor announced fundraising figures for the fourth quarter of 2013 and a record-breaking 2013.

NUMBERS ON THE WIRE
$65 million: Estimated cost to construct a third high school in Fort Smith. According to Superintendent Dr. Benny Gooden, the need for a third high school is real as enrollment has continued to increase across the district.

$445,000: The amount of money raised by the Asa Hutchinson for Governor campaign during the last three months of 2013, the campaign's largest fundraising haul to date in a quarter typically marking some of the lowest giving during an election cycle.

120: Number of megawatts of power saved by customers of Oklahoma Gas & Electric who use smart meters.

OUTSIDE THE WIRE
• Emergency room emergency
People seeking urgent medical could face longer wait times and other challenges as demand increases under Obamacare, U.S. emergency doctors said in a report on Thursday that gives the nation's emergency infrastructure a near failing grade. States with the best emergency care include Massachusetts, Maine, Nebraska and Colorado, while Kentucky, Montana, New Mexico and Arkansas rounded out the bottom, just above Wyoming.

• No love for Petrino
Not only has Petrino managed to land another big job, he’s going to be coaching at the school where he first built his reputation for selfishness, dishonesty and opportunism.

• Chicken laws and the commerce clause
The country is awash in legislative efforts to increase regulation of agriculture, but only California has had the chutzpah to impose the preferences of that state’s voters on the rest of the country.

WORD ON THE WIRE
"It is not in my nature to quit a job before it is completed. But given my medical problems and the toll that this job has taken over the past two years I owe this decision to my family."
– resignation statement from Del Gabbard, who resigned as Greenwood Mayor effective Jan. 13

"This skill set is in demand not just n the tech sector, but in banking, entertainment, medicine and virtually every area. Whether our children want to be farmers, doctors, teachers or entrepreneurs, they will all benefit from the creativity and problem-solving skills that are the essence of creating computer software."
– statement from GOP gubernatorial candidate Asa Hutchinson on his plan to promote computer science education

“It’s probably my last Coon Supper. I started here 32 years ago as their state senator, running for their state senator. And this is the place that really kicked off my campaign. Even though I was from Searcy, Gillett may have had more to do with starting my first political campaign than any place in Arkansas.”
– Arkansas Gov. Mike Beebe during a speech at the 71st annual Gillett Coon Supper

One of Oklahoma's most well-known politicians is calling it quits.

U.S. Sen. Tom Coburn, R-Okla., announced late Thursday (Jan. 16) that he would resign following the conclusion of the 113th Congress.

Coburn, an obstetrician from Muskogee, has been battling a recurrence of cancer this year, though the 65-year-old said in a statement that his health was not the reason for resigning with two years left in his second term in the Senate.

"Carolyn and I have been touched by the encouragement we’ve received from people across the state regarding my latest battle against cancer," he said. "But this decision isn’t about my health, my prognosis or even my hopes and desires."

First coming to Washington in 1994 as a member of the U.S. House of Representatives and then being elected to the U.S. Senate in 2004, Coburn spent much of his career fighting for reduced spending and "common sense" governing, becoming well-known during his time in the Senate for his annual Wastebook, highlighting what he and his staff determine is the "most egregious spending" each year.

Coburn said he expects his successor will continue to fight for common sense policies for the people of Oklahoma.

"That’s why I initially ran for office in 1994 and re-entered politics in 2004. I’m encouraged there are thousands of Americans with real-world experience and good judgment who feel just like I do," he said. "As dysfunctional as Washington is these days, change is still possible when ‘We the People’ get engaged, run for office themselves or make their voices heard. After all, how else could a country doctor from Muskogee with no political experience make it to Washington?"

In a video on his Facebook page, Coburn told supporters that his retirement would be spent back in Oklahoma and added that he would focus his attention on how he "can best serve my own children and grandchildren."

With Coburn's resignation to take place at the conclusion of the current Congress, a special election will be necessary to fill the spot with many party insiders saying other members of the Congressional delegation — namely Republicans Tom Cole of Norman and James Lankford of Edmond — have an eye on Coburn's. Neither has publicly commented on the speculation swirling among insiders from Washington to Oklahoma City.

Another Republican rumored to be interested in the seat, U.S. Rep. Markwayne Mullin, R-Westville, congratulated Coburn on his years of service and upcoming retirement on Friday (Jan. 17).

“Our sincere appreciation goes out to Dr. Coburn for his years of service and unwavering dedication to this country," he said. "A true public servant, he will be missed in our delegation and in Washington, D.C. It has been an honor to work alongside Dr. Coburn and I thank him for his service.”

Gov. Mary Fallin, R-Okla., has already set the special election dates to coincide with the 2014 election cycle with the primary set for June 24, a runoff (if needed) on Aug. 26 and the general election on Nov. 4.

Fallin, in the midst of her own re-election this year, also commented on Coburn's time in office and the issues he has stood for during his time in office.

“Doctor Tom Coburn has represented the ‘Gold Standard’ for smart and tough fiscal conservatism since he began serving in the United States Congress in 1995. He is a true hero of the American Taxpayer and one of the most influential voices in American politics today," she said.
 
“His consistent, relentless advocacy for responsible spending and deficit reduction has earned him respect from men and women on both sides of the aisle. Agree with him or not, there is never any doubt where Tom Coburn stands on the issues. He is as impressive a public servant as they come, and I am sure we have not heard the last from him. While I am sorry to see the Senate lose one of this country’s great statesmen, I am happy that Tom can now spend more time with his family and focus on other opportunities.”

COBURN'S FULL STATEMENT ANNOUNCING HIS RESIGNATION
“Serving as Oklahoma’s senator has been, and continues to be, one of the great privileges and blessings of my life. But, after much prayer and consideration, I have decided that I will leave my Senate seat at the end of this Congress.

“Carolyn and I have been touched by the encouragement we’ve received from people across the state regarding my latest battle against cancer. But this decision isn’t about my health, my prognosis or even my hopes and desires. My commitment to the people of Oklahoma has always been that I would serve no more than two terms. Our founders saw public service and politics as a calling rather than a career. That’s how I saw it when I first ran for office in 1994, and that’s how I still see it today. I believe it’s important to live under the laws I helped write, and even those I fought hard to block.

“As a citizen legislator, I am first and foremost a citizen who cares deeply about the kind of country we leave our children and grandchildren. As I have traveled across Oklahoma and our nation these past nine years, I have yet to meet a parent or grandparent who wouldn’t do anything within their power to secure the future for the next generation. That’s why I initially ran for office in 1994 and re-entered politics in 2004. I’m encouraged there are thousands of Americans with real-world experience and good judgment who feel just like I do. As dysfunctional as Washington is these days, change is still possible when ‘We the People’ get engaged, run for office themselves or make their voices heard. After all, how else could a country doctor from Muskogee with no political experience make it to Washington?

“As a citizen, I am now convinced that I can best serve my own children and grandchildren by shifting my focus elsewhere. In the meantime, I look forward to finishing this year strong. I intend to continue our fight for Oklahoma, and will do everything in my power to force the Senate to re-embrace its heritage of debate, deliberation and consensus as we face our many challenges ahead.

“May God bless you, our state and our country.”

In a move to expand its prepared food sales, Tyson Foods Inc. recently acquired the assets of Bosco’s Pizza Co. of Warren, Mich., according to a press release issued Monday (Jan. 20) by the Springdale-based meat giant. Terms of the deal were not disclosed in the release.

“Bosco’s will be a good addition to our diversified portfolio of quality food offerings,” Donnie King, Tyson Foods’ president of prepared foods, customer and consumer solutions, said in the statement.

The pizza company employs about 150 workers. The Bosco Pizza brand will continue to operate as a unit under the Tyson’s Prepared Foods division. Craig Mulhinch, vice president of Bosco’s sales and marketing, and Paul Morgan, vice president of Bosco’s operations, will continue to manage the day-to-day operations.

Bosco’s Pizza, famous for “The Original Bosco Stick,” produces a variety of stuffed bread sticks and frozen pizzas for food service and retail customers throughout the Midwest and at some retailers nationwide.

“This is a great opportunity for the Bosco’s brand,” Mulhinch said. “We’ve put a lot of effort into creating high-quality products and Tyson Foods has recognized that. This deal will allow us to accelerate our growth while we continue to focus on the fundamentals of making excellent artisan bread products. We’re excited about joining the Tyson team.”

Entrepreneur Mark Artinian created Bosco’s as a carry-out pizzeria in 1988 before he began delivering frozen pizzas to area high schools. In 1995, the company started producing frozen stuffed crust pizza, which soon led to stuffed bread sticks, the company’s main product line today. Artinian will remain with the business in an advisory role.

Tyson Foods is the largest supplier of pepperoni and pizza toppings to the food service industry. Tyson Foods markets prepared foods products to retail grocers, food service distributors, restaurant operators and on-site food service establishments such as schools, universities, corporate cafeterias, hotel chains, healthcare facilities and the military.

In addition to “The Original Bosco Stick,” the Bosco’s Pizza plant produces partially baked frozen pizza made with traditional and whole grain crust, reduced-fat cheese Bosco Sticks, pepperoni Bosco Sticks and whole grain apple-filled Bosco Sticks in a variety of sizes and pack options. More information about Bosco’s Pizza is available at BoscosPizza.com.

Tyson is also rumored to be evaluating a $2 billion purchase of Michael Foods, a large distributor of eggs and dairy products, according to a report from Reuters on Jan. 16. Tyson did not confirm or deny the rumor when asked by The City Wire on Friday, Jan. 17.

CEO Donnie Smith has said in recent months the firm would be evaluating certain small potential acquisitions should the opportunities arise. Tyson is flush with cash and has announced strategic plans to grow its value-added sales and expand the products offered in its diverse prepared foods segment.

The Bosco deal fits those parameters, the Michael’s bid would be substantially larger.

The number of homes sold in Arkansas’ four largest metro areas totaled 20,644 during 2013, the first time since 2007 that the tally topped 20,000 and the first the value of the homes sold in the four markets topped $3 billion.

Also, December home sales in the four markets totaled 1,535, the first time since the bullish days of 2006 that the December total was above 1,500. Home sales during 2007 in the four markets totaled 22,007, with the value reaching $3.563 billion.

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

During 2013 the number of homes sold in the four markets totaled 20,644, up 12.93% compared to the 2012 period and up 15.56% compared to 2011, according to The City Wire’s Arkansas Home Sales Report. The report is sponsored by Fort Smith-based Weather Barr.

The value of homes sold in the four markets during 2013 was $3.439 billion, up 15.13% compared to the same period in 2012 and up more than 28% compared to the same period in 2011.

The average price of homes sold during 2013 in the four markets was $166,598, up 1.95% compared to the same period in 2012 and up 10.84% compared to the same period in 2011.

The average days on market during 2013 is 86.89, better than the 95.85 in 2012 and the 103.51 in 2011.

During 2013, the number of homes sold in central Arkansas are up 10.44%, up 12.89% in the Jonesboro area, up 17.98% in Northwest Arkansas, and up 7.36% in the Fort Smith area.

Benton County was the top Arkansas county for home sales during the year. The county, with a population of around 230,000, had 4,571 home sales in 2013. Pulaski County, the state’s largest with a population of around 390,000, posted 4,499 home sales during the year.

DECEMBER ACTIVITY
Combined home sales activity was up in all four markets during December, but the combined average price was down in all four markets. The average price per home in the four markets was $164,600, down 2.32% compared to December 2012. The average price was up 3.95% compared to December 2011.

There were 739 homes sold in central Arkansas, up 25.47% compared to December 2012, and up 13.87% compared to December 2011.

December home sales totaled 537 in Northwest Arkansas, up 20.13% compared to December 2012, and up 28.16% compared to December 2011.

Jonesboro area home sales totaled 121, up 2.54% compared to December 2012 and down 3.97% compared to December 2011.

In the Fort Smith area, home sales totaled 138, up 12.2% compared to December 2012, and up 8.66% compared to December 2011.

The value of the sales during December were up 17.4% in central Arkansas, up 22.5% in Northwest Arkansas, up 0.11% in the Jonesboro area, and up 9.77% in the Fort Smith region.

THE REGIONAL PICTURE: 2013
Central Arkansas — Home sales
2013: 9,709
2012: 8,791
2011: 8,553

Fort Smith area — Home sales
2013: 1,735
2012: 1,616
2011: 1,700

Jonesboro area — Home sales
2013: 1,970
2012: 1,745
2011: 1,755

Northwest Arkansas — Home sales
2013: 7,230
2012: 6,128
2011: 5,856

The top five counties in terms of 2013 home sales:
Benton — 4,571, up compared to 3,853 in 2012
Pulaski — 4,499, up compared to 4,151 in 2012
Washington — 2,659, up compared to 2,275 in 2012
Saline — 1,570, up compared to 1,384 in 2012
Craighead — 1,561, up compared to 1,355 in 2012

Link here for a PDF document of the December 2013 data.

MARKET IMPACTS
Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas, said 2013 is further evidence that real estate markets are continuing to recover.

“I think it's clear. If we look at the whole year, 2013's average sales price was as high as it has been in the state,” she said.

Deck said the number of homes sold in 2013 might not equal the peak years of 2005 through 2007, but the areas covered in The Arkansas Home Sales Report have returned to pre-recession levels. When higher sales numbers are combined with the highest average sales price in Arkansas, “it's hard to come up with a word other than recovery,” Deck said.

Deck said she expects sales to improve in 2014 – further evidence that the overall economy is improving. She said the nation is still slogging through a long recovery that has been fueled with a change in attitudes as much as anything else.

“Businesses and consumers have learned to deal with conditions as they are,” she said. “Some consumers – some businesses – are thriving even in economic times that aren't ideal.”

In that context, then, it's difficult to view real estate markets in Arkansas or the nation as one unit. Deck said real estate markets are tied to local areas, meaning sales are strong in some areas and not others. Deck said the economy in Jonesboro, for example, continued to expand even through the recession and the result has been a consistently solid real estate market at times when other parts of the state and nation were watching both sales and home values drop at alarming rates.

Arkansas Realtors Association President Bill Ladd, an agent with Moore & Co. Realtors in Russellville (tmoorerealtors.com), agreed with Deck that the old adage is true – real estate is local. He said the largest markets in Arkansas – primarily those covered in The Arkansas Home Sales Report – fared very well in 2013. In more rural areas of Arkansas, however, growth has come more slowly to markets.

REAL ESTATE HEADWINDS
Still, Ladd expects markets to improve throughout the state in 2014. He predicts the first quarter will be “soft and sluggish” due in large part to the Patient Protection and Affordable Care Act (Obamacare). Ladd said Realtors will watch the full impact of the Affordable Care Act. If early reports of increasing premiums prove to be common, that could have a negative impact on a housing market recovery as fewer people may qualify to purchase homes. By the time the spring rolls around, Ladd predicts markets will continue to expand as they grow accustomed to the Affordable Care Act and conditions should expand throughout the rest of the year.

Ladd and Deck agree that 2014 should be another year of moderate improvement in housing markets around the state. Deck said there are some headwinds facing the market such as increasing mortgage rates, but markets should come out ahead in spite of those.

Ladd believes what will improve the overall economy – and housing markets on the whole – is a falling unemployment rate. Real estate markets are sensitive to job growth and it remains to be seen if a substantial number of jobs are created in the Natural State this year.

Arkansas began the year with 1.247 million employed in January, with the number falling 1.74% to 1.226 million by November, according to the U.S. Bureau of Labor Statistics. The employment level in November was down more than 5.6% compared to a high of 1.299 million in March 2008.

A new events company in Fort Smith is already making a name for itself, landing one of the region's biggest corporate events after officially being open for business for a little over a month.

RSVP Event Rentals, a wholly owned subsidiary of Fort Smith-based FSM Redevelopment Partners, is the brain child of owner Lance Beaty. Beaty was the developer behind the former Phoenix Expo Center, which has since become the new Health Management Associates (HMA) regional service center.

Instead of simply shutting the doors to the Phoenix Expo Center following the lease to HMA, which Beaty said had been successful since its opening in 2009, he decided to take the facility's existing inventory of linens, furniture and dishes to create a new events rental business in the Fort Smith market. After adding "several hundreds of thousands of dollars of new (inventory)," Beaty opened a showroom and 40,000-square-foot storage facility on the north side of the former Phoenix Village Mall property that his company already owned. The business concept, he said, is essentially what he and his staff were already doing at the Phoenix Expo Center, just minus one component.

"We just looked to redeploy assets," Beaty said. "It's a reformatting of what we were doing with the real estate taken out."

Beaty said the business, with more than $1 million in inventory, is completely debt free and already had established relationships in the Fort Smith area that Manager Melissa Smith took with her from the Expo Center to RSVP Event Rentals.

"I had had contacts already, just from (customers) hearing that it was an idea that we were going to have," Smith said.

Of the four established event planning firms in the Fort Smith region, Smith said RSVP would be classified as among the larger firms simply based on the company's inventory and experience with Phoenix Expo Center.

Already, the company has contracted to manage Baldor's annual sales meeting in Fort Smith beginning Monday (Jan. 20). The event brings in more than 600 people from across the nation, requiring RSVP to serve up more than 1,800 meals per day for attendees.

"We're the only one who could do Baldor (at) three meals a day," Beaty said, adding that the Phoenix Expo Center's inventory coupled with the additional furniture and dinnerware made it possible for RSVP to get a jump in the Fort Smith events market.

Smith said a little more than a month into being fully operational, RSVP was doing about three or four events each week at an average price of $2,000 each. The events, she said, are a mixture of personal events and business events.

She said even with the economy still in the midst of recovery from a prolonged recession, clients have not held back when it comes to big events such as weddings, sweet 16 parties, quinceañeras and corporate functions. According to Smith, locals are ready to invest in moments to remember.

"We are (finding people wanting to invest in big events), so far. A lot of them are (investing), especially with weddings. 'It's my daughter's...it's her only wedding.' So they're still ready to put that money out there. It's a one-time event."

To serve a growing clientele that may just now be hearing about RSVP Event Rentals through radio advertising or on Wedding Wire, the company has a fully outfitted show room that highlights various dining and event options. Smith said once a decision is made by a client to go with RSVP, all that is required to reserve the company's services is a 25% deposit.

And as for getting the company's services reserved before someone else does, Beaty said that would likely not be a problem.

"We have enough (inventory) to do five separate events, serving 2,200 people at once," he said.

As for what the future holds for RSVP, Smith would like to see the company's bookings more than double from three to four events each week to 10 events per week, something she and Beaty expect to happen as they reach not only past clients from Phoenix Expo Center but also new clients hearing about the events rental company for the first time.

Beaty, whose company is also considering an investment to acquire and renovate Fianna Hills Country Club, said once RSVP completes its first year in business, he's expecting about $1.3 million in sales.

And for anyone who may doubt those sales expectations or his future success, all one has to do it look at the doubters who did not think his idea for an events center inside the former Phoenix Village Mall would be the success it became, leading to RSVP's debt-free venture.

"I guess that just comes with a little bit of foresight and a little bit of luck and being able to identify holes in the market. It was clearly an area that was underserved. We feel like that this continued market is underserved and the event rental business in this market, as well as we feel like the redevelopment of that Fianna Hills Country Club, is another opportunity."

Health and wellness is big business for Wal-Mart’s Stores Inc. garnering roughly $2.495 billion in sales — roughly 11% of the retailer’s total U.S. sales in fiscal 2013. Sales grew 3.9% from the prior year but the retailer is barely scratching the surface of opportunities as there are major shifts underway in this segment.

Dr. John Agwunobi, president of health and wellness for Wal-Mart Stores, said there are ample opportunities to grow market share. He outlined a few areas where Wal-Mart was focusing on health and wellness growth: healthcare services such as immunizations provided by pharmacists in-store; product innovation, branded and private label, and key focus on the boomer demographic.

HEALTHCARE SERVICES
“We have 100,000 pharmacists scattered about this country and a vast supply chain network that we must fully leverage. Right now in 1,400 of our stores, we have pharmacists giving immunizations and other inoculations, but we will make these services available in all of our stores with pharmacies sometime this year,” he said.

Agwunobi spoke to roughly 800 business professionals in Rogers on Tuesday morning (Jan. 21), as the keynote speaker for the WalStreet Breakfast, a program offered by the Bentonville Chamber of Commerce.

He admitted that Wal-Mart has taken a back seat to other drug store chains when it comes to in-store clinics.

“We have 140 or so in-store clinics at this time and hope to add more in the future. We continue to test and study this option, but we haven’t found the answer yet,” Agwunobi said.

He added that while a couple of drug store chains — Walgreen and CVS Caremark — have actively opened in-store clinics in the past two years, he isn’t sure the ventures are profitable.

According to the Convenient Care Association, there are more than 1,400 health clinics inside retail chain stores – twice the number that there were in 2007. CVS Caremark leads the pack with 650 MinuteClinics in 25 states and Washington, D.C. Although Walgreen is second to CVS in clinic numbers, with Take Care clinics in 372 stores, it anticipates major growth in the next two years with a growth strategy that includes forming accountable care organizations (ACOs) and providing diagnosis and treatment services.

Walgreen partnered in 2013 with Florida-based Diagnostic Clinic, New Jersey-based Advocare, and Texas-based Scott & White Healthcare to form ACOs in which the retailer will benefit from gain sharing when the ACOs succeed in keeping patient healthy at a low cost.

Agwunobi said there continues to be massive consolidation in the drug store channel as the larger players seek to expand their footprints, aligning with insurers and other partners.

“This is a fundamental vertical shift in this channel. The worst thing we can do is sit by and watch. No one knows exactly how this end up but it’s important that we are part of the dialog as we keep our eye on the beacon — for Wal-Mart, that is the customer,” Agwunobi said.

While the Affordable Care Act intent was good, Agwunobi fears it will end up costing suppliers and consumers more money once the mandates kick in. He said those are two areas that squeeze the retailer from both ends.

“As consumers have higher costs associated with health care, that is less money they can spend on other things,” he added.

BOOMER IMPACT
One area Agwunobi said there is enormous potential is in over-the-counter (OTC) wellness and nutrition innovation. 

“Boomers are here. Their consumption is dramatically impacting our business in the areas of eye ware, gastric meds and Medicare Part B participation,” he said.

At one end of the boomer spectrum, Agwunobi described millions of older consumers living active lifestyles, engaged in fitness, yoga, consuming vitamins and other healthy nutrition products. One area where the retailer has seen big gains is in the private label eye wear, such as the Equate contact lenses. Agwunobi said it comes down to price and quality, the two areas that Wal-Mart won’t compromise.

“There is room for product innovation across multiple categories in both private label and branded, from fitness apparel and gear to food supplements,” he said.

On the spectrum’s other end he said the retailer is seeing older seniors and demand growth in diabetes and incontinence products as well as durable equipment sales. He said Wal-Mart seeks keep the cost of living down for seniors requiring more health care services and will rely heavily on its suppliers to bring ideas and solutions to the table.

E-mails tell the tale of an attempt to keep information about cost estimates for the Ben Geren Aquatics Center from city and county officials voting on budgets and amenities tied to the contentious aquatics facility being planned and jointly funded by the city of Fort Smith and Sebastian County.

The e-mails — obtained by The City Wire through a Freedom of Information Act request — revolve around Kent Lemasters, president and CEO of AmusementAquatic Management Group. Lemasters spoke to a Jan. 6 joint meeting of the Fort Smith Board of Directors and Sebastian County Quorum Court.

At the meeting, Lemasters — who has been involved in the amusement and hospitality sectors in various capacities since 1976, including 15 years as vice president of Raging Waters amusement park in San Dimas, Calif. (Los Angeles County) —spoke about how the inclusion of a wave pool would be the primary draw at the aquatics facility.

Not mentioned during Lemasters' presentation were his concerns about the budget approved by both governmental bodies at separate meetings on Dec. 17, 2013, could be too high. Both bodies voted to increase the budget of the project from $8 million to $10.9 million, an increase of nearly $3 million.

"Congratulations on getting your budget increased," Lemasters wrote to Fort Smith Parks and Recreation Director Mike Alsup in a Dec. 23, 2013, e-mail. "However, I remain concerned that your estimates to construct the waterpark are extremely high. I believe that for your new $10.9 budget, we can (build) an even bigger waterpark. Or, we can build the current planned waterpark with a wave pool at somewhere between $6M and $8M."

When reached for comment by telephone on Jan. 17, Lemasters would not explain his reason for questioning the $10.9 million budget approved by the city and county, adding that, "I have to be careful what I say because, you know, it's not our park at this point. It's not a park we're managing." 

Lemasters added: "I think the $6 to $8 million was before, I believe, the wave pool, I think." Once reminded of the e-mail he wrote to Alsup, Lemasters refused to answer further questions.

"Well, I really. ... I will need to talk to Mike (Alsup) before I can really answer any questions for you because, like I say, I'm not connected to the city as an employee or a contractor or anything. So I feel uncomfortable in speaking to anything other than the plan."

Lemasters, whose trip from California to Fort Smith earlier in January was funded by Fort Smith taxpayers to the tune of about $1,200, said he would not discuss the e-mail any further "until I've talked to (Mike Alsup) and made sure they are OK discussing it."

Further attempts to reach Lemasters by telephone on Friday and Monday (Jan. 20) were unsuccessful.

Contacted later Friday, Alsup said Lemasters was free to discuss the issue with the media, though he cast doubt on Lemasters' cost estimate.

"You have to look at what he's basing that on and your local conditions — rates of pay, what concrete and things cost in different areas, you'd have to look at that," he said, later adding that Lemasters was not given enough information to make an informed estimate of what the water park would cost to construct.

"He's looked at a concept, he's not looked at details. Our construction manager is looking at exactly how many yards of concrete we need for the decks and the buildings and things like that. The view…he hasn't looked at anything in detail like that. So you know, that would be different."

Alsup also pointed to the type of construction used in some of Lemasters' other parks — namely Castaway Cove, a municipal water park in Wichita Falls, Texas — which he said includes metal buildings built to lower standards than other facilities, including the planned Ben Geren Aquatics Center.

In discussing the e-mail, Alsup was asked directly if Lemasters was told to keep quiet about his views of the cost estimates when speaking before the joint meeting.

"He knew that the purpose of that meeting was to approve the elements — the wave pool, the water slides, and so on. So he knew that that was the purpose of the meeting."

Asked again, Alsup again avoided giving a direct “yes or no” answer.

"He was told that the purpose of the meeting was to discuss the elements and to approve the elements. The budget had already been set. That's why his comments did that."

Deputy City Administrator Jeff Dingman, Alsup's direct supervisor, said Lemasters' estimate for construction of the water park was never relayed to the city's Board of Directors.

"No. The only thing that was relayed to the Board based on his opinions necessarily was what he said out loud to them at the joint (meeting)," Dingman explained, adding that he personally did not instruct Lemasters to keep quiet about cost estimates.

"I do know we didn't ask him for his opinion on cost, we asked him for his opinion on the various amenities," he said.

Asked whether his answer implied Lemasters was instructed to keep quiet, Dingman referred to an e-mail included as part of The City Wire's FOIA request.

"I know that Ray (Gosack, Fort Smith's city administrator), I think, through an e-mail that you probably saw reminded all of the staff that Kent was there to talk about his opinions on the amenities, not necessarily costs."

The e-mail written by Gosack to Alsup — which was copied to Dingman, Sebastian County Judge David Hudson, Assistant County Administrator Scott Stubblefield and County Parks and Recreation Director Channon Toland — made clear that Alsup was to keep Lemasters from discussing his views of the cost estimates. Gosack noted in the e-mail:"Thanks for clarifying.  We’ll also want to be certain that Kent stays away from cost estimates at Monday night’s meeting – the architect and CM will be discussing those.  We can discuss estimates with Kent when we meet with him on Tuesday morning. "

Justice of the Peace Shawn Looper was at the joint meeting on Jan. 6 and overheard a brief conversation between Justice of the Peace Tony Crockett and Lemasters following the meeting, in which Crockett asked Lemasters whether he could help the city and county reduce construction costs.

"He said, 'Yes. I can save you money on the construction of this project.' That wasn't really discussed in the (public) comments, but that was really the only comment (about cost) that I heard like that."

Looper said Lemasters’ thoughts on the costs should have been forwarded to the two governmental bodies, especially as they continue to look for ways to save money.

"He says we can build the $10.9 (million) for $6 (million) to $8 (million)? …Then someone needs to answer for that. I mean, why would we not want to do that? That doesn't make sense."

As for whether the bodies can go back and again change the funding model for the project, possibly reducing the allocated funding to a lower amount, Looper said it was something he would look into, possibly bringing the issue before the Quorum Court.

"I don't know that," he said. "Another thing that I don't know is our contracts with Larkin and the construction manager, I don't know how they would be effected, either. But I wonder if he could be brought in as, if he could save us $1 million, if he could be brought in as a consultant to consult with whoever we have on the project. I don't know the answer to those things, I'm just asking that question."

Regardless of what happens moving forward, Looper said he wants both governments to better communicate what is happening away from the spotlight of public meetings.

"This is what always bothers me, is to get good information after the fact. I mean, that to me is a detriment to the whole project. I mean, we needed to flesh that out and at least he was there, we could have at least heard his comments on this. That would have helped the decision making. It could have saved us a lot of money, so why not get that out into the open? To me, there's no benefit in not letting the different bodies have that information. I don't understand why it's so hard to get information."

Vice Mayor Kevin Settle confirmed he had not previously been presented with the cost estimates Lemasters provided Alsup, which made their way up all the way to the city's senior administration officials.

"This is the first I've heard about that. I don't know anything about that at all. The only things I know about are the estimates that came from our construction manager (Flintco) and Larkin Aquatics. That's the only estimates I've ever heard about," he said, adding that it was tough to respond to the e-mail without knowing what Lemasters' figures were based on.

"I didn't come across asking him about price or anything else," Settle said.

Asked whether seeking Lemasters' input on cost estimates would have been a useful exercise for the Board and Quorum Court, Settle said, "If you're asking (as) Monday Morning quarterback three weeks later, then yes."

Agriculture is still king in Arkansas despite being the home of the world’s largest retailer, a robust trucking industry and a quickly evolving start-up sector.

Farming is an $8 billion industry in the Natural State, according to Travis Justice, senior economist with the Arkansas Farm Bureau. But while the total receipts continue to rise, farmers report having only a fair year at best in 2013. But, as is the nature of farmers, they hold out hope for a better 2014.

CHICKEN TALES
Poultry comprises a lion’s share of the state’s net receipts from agriculture behind the production of Arkansas-based companies like Tyson Foods, Simmons Foods, George’s and O.K. Foods. Another half dozen poultry firms have processing facilities in state.

The production of poultry is valued in excess of $2.4 billion annually, with 1.2 million broilers and roughly 24 million turkeys grown and processed in Arkansas. Poultry integrators have reported a solid year in terms of profits, helped by lower grain costs, higher retail prices amid steady consumer demand.

In fiscal 2013, Tyson Foods’ chicken division generated operating income of $646 million, up from $484 million in fiscal 2012. Tyson achieved these results in spite of incremental feed expenditures of $30 million and $470 million, in the quarter and year, respectively. Donnie Smith, CEO of Springdale-based Tyson Foods, said lower grain costs with the recent bountiful harvest and lower market pricing won’t show up in production results until early second quarter of 2014.

Total chicken sales for fiscal 2013 totaled $12.296 billion, helped by a 1.9% increase in volume and a 6.1% hike in prices. Smith said Tyson captured share as the No. 1 chicken brand in the U.S. during the quarter, according to Nielsen. He said the company will continue its “buy versus grow” policy through 2014, as it works to keep excess supplies out of the freezer.

“We will continue to buy breast meat in the open market that goes into valued-added products, in order to keep dark meat surpluses from occurring. We will also work toward more product innovation with dark meat products,” Smith said during the earnings call with analysts.

FARMER TALES
Poultry growers from Berryville to Springdale said corporate strategies to buy chicken in lieu of growing it has come at their cost.

“This has been the worst year I have seen in the 12 years I have been growing. I invested $170,000 retrofitting three of my seven houses and had my flocks per year reduced to four instead of five. Cash was so tight I had to take a part-time job to keep food on the table,” said Casey Wilson, a Tyson Foods grower near Huntsville.

He said chick quality has also been more inconsistent this year which has created some volatility in the payout structure based on the tournament system used throughout the industry.

“My farm goes from the top to the bottom from one flock to next and my operations are consistent in these houses year-in and year-out. It’s a complete puzzle to me how these results can vary so widely,” Wilson said.

Randy Robinson has been farming for 30 years and operates 10 broiler houses for Tyson Foods. He gives 2013 a “C-” rating citing the longer layout times between flocks, which have cut his farm’s total production. He also raises cattle near Springdale.

Gene Pharr, a grower for George’s Inc. near Lincoln, said 2013 has been on par with his expectations, but he also cites a slight reduction in layout time between flocks and recent concerns over diseased birds.

A few years ago, Pharr invested in LED lighting in his poultry houses and that has reduced his energy costs by more than 60%. Pharr said that investment in the lights is paying off and helping the farm’s total bottom line. There are five houses on his farm and his biggest concern is the supply of birds he may or may not get, depending on production goals.

The average cost of operating a poultry house ranges from $100 to $250 per flock depending on barn size and age of the flock when it goes to market, according to Susan Watkins, professor and extension poultry specialist at the University of Arkansas in Fayetteville.

Jim Yell of Lincoln said he sold his four broiler houses and 20 acres of land nearly two years ago. Yell said that despite tedious management, the business was a losing proposition and it didn’t matter with which company they contracted. Yell has grown poultry for Tyson Foods, Peterson Farms and Simmons Foods throughout the past decade. Yell held on to his Angus beef cattle operation.

BETTER BEEF
Justice said that broiler farms often work in tandem with beef cattle operations in Arkansas to help boost overall farm profits. He said cattle production across the state is valued at $500 million, with some 1.7 million head. Roughly 95% of that herd is configured in cow-calf operations with an average herd size of 100 to 150 head.

“Coming off a two-year drought that forced some herd liquidation, cattle farmers got a little relief in 2013. We have had adequate moisture, sufficient grazing conditions and ample hay supplies all while calf prices have escalated on the shorter supply numbers,” Justice said.

Cattle markets are heading into the final holiday period of 2013 at record or near record price levels across the board, according to Darrell Peel, extension livestock marketing specialist with Oklahoma State University.

Justice said Arkansas cattle farmers will likely hold their herds steady into 2014.

“On the bright side, the immediate liquidation has been stemmed given the good forage supplies, but the cost to add cattle right now is very high and many farmers are standing down,” Justice said.

JERSEY AND ANGUS
Robinson, the cattle farmer near Springdale, said his cattle herd numbers about 140 and he sold off all of his calves this past summer when prices reached high levels. The summer rally in calf and feeder cattle prices added $20 to $25 per hundredweight to steer calves and feeder cattle since late May. That is equal to $100 to $200 additional per head, and much of that gain is attributable to improved growing conditions for corn and forage this year.

Yell said he bought a Jersey milk cow so his wife Connie could make butter, cream and canned milk for baking, but within two months they had a two year’s supply so he put one of his beef calves on her.

“This one Jersey has raised three calves for me this year which I sold at roughly 350 pounds. The going price at $700 or better was a nice boost to the farm income. We still run a herd of roughly 160 Angus cattle and plan to keep that number steady in 2014,” Yell explained.

Yell markets his Angus beef on half or quarter side and said consumer demand has been somewhat tepid given the higher prices for the grass-fed cattle. Beef prices overall have been high this year, but that has not kept export demand down.

ROBUST BEEF EXPORTS
Justice said the exciting story in 2013 for the beef industry has been robust export demand from Japan and the Pacific Rim region. Japan has regained its No. 1 position as the biggest importer of U.S. beef. The U.S. Meat Export Federation reported through October gross metric tons of beef sold to Japan increased 48% from a year ago to 178.68 metric tons valued at $1.017 billion.

Justice said because Arkansas cattle producers provide calves that eventually make their way into feed yards which are sold for slaughter, there is a trickle down impact to local farmers when exports are strong. One big factor to watch in 2014 is consumer push back from higher prices that could temper domestic demand.

Peel said cattle slaughter and beef production are falling as the market transitions into a much tighter supply situation in 2014. With that, cattle and beef prices are expected to push to even higher record levels in 2014. Justice said domestic consumers will still want hamburgers and steak, but they may not be ordering them at higher-end restaurants.

Market research firm the NPD Group said the restaurant industry expected price increases for beef will create a headache for restaurant-goers, but it’s likely to hit consumers even harder. NPD Group vice president Harry Balzer said that while only about 30% of what we pay at restaurants reflects the costs of food, around 80% of our grocery bill is food costs.

Retail all-beef prices averaged $5.35 per pound in October, up 7% from a year ago, according to the last record available by the U.S. Department of Agriculture. Wholesale prices rose 4.5% to $3.09 per pound. The net farm value totaled $2.74 per pound, up 2.8% from a year ago.

Experts predict those prices will escalate further into 2014 given tight feeder cattle and the smallest calf crop since 1940. Justice said the cattle industry has not yet turned the corner because it will take several more years to rebuild the herd from the sell off of the last couple of years. On a bright note, he said in 2013 beef exports finally surpassed the levels from the pre-2003 export bans related to Bovine Spongiform Encephalopathy, commonly known as “Mad Cow Disease.”

“It took the industry a decade to recover that export volume lost in December 2003. The sustained drought and record grain prices of the past couple years also weighed heavy on the beef industry, but barring some weather catastrophe or disease outbreak, 2014 should be better for many Arkansas farmers,” Justice said.

Arkansas voters view the private option insurance plan more favorably than unfavorably, according to a new survey from Talk Business and Hendrix College.

Last year, a bipartisan group of state lawmakers, led by Republicans, and Gov. Mike Beebe (D) passed the innovative plan that allowed Arkansas health officials to steer Medicaid expansion funds from the Affordable Care Act into private health insurance plans. The funding for the private option narrowly passed both chambers of the Arkansas General Assembly in 2013 and is expected to come up for renewal funding in February 2014.

In a statewide poll of 520 likely Arkansas voters conducted Jan. 19, 2014, 47.5% said the private option should continue. Roughly 32.5% say the program should end and 20% are undecided.

Q: Last year, the legislature passed a law allowing Arkansas to spend federal Medicaid dollars to provide private insurance to low-income Arkansans through health care exchanges. In the upcoming meeting of the legislature, lawmakers will be asked to continue that program or not. Should the legislature vote to continue this “private option” after this current year?
47.5% Private Option Should Continue
32.5% Private Option Should End
20% Don’t Know

“The spread between those who think the private option should continue versus those who think it should end is considerable,” said Talk Business executive editor Roby Brock. “With votes wavering or apparently peeling off of support in the legislature, these numbers present a different viewpoint from the public’s perception.”

Like at the state capitol, Democrats are fairly unified in their support of the private option, while Republicans have a disjointed view.

Two other questions asked in the poll highlight the conservative bent of Arkansas voters on abortion laws and same-sex marriage.

Q: Do you favor laws that would make it more difficult to get an abortion, favor laws that would make it easier to get an abortion or should no change be made to existing abortion laws?
55% Make It More Difficult
23% Make It Easier
20% No Change
2% Don’t Know

Q: Which of the following policy positions most closely resembles your own view regarding relationships between two people of the same sex?
21.5% Gay couples should be allowed to legally marry
24% Gay couples should be allowed to form civil unions or domestic partnerships, but not legally marry
50% There should be no legal recognition of a gay couple’s relationship
4.5% Don’t know

ANALYSIS
Dr. Jay Barth, professor of political science at Hendrix College, helped construct and analyze the poll. He offered the following observations:
• For this snapshot of the Arkansas political landscape going into what will unquestionably be a consequential political year in the state, we mixed some questions consistently tracked by the University of Arkansas’s Arkansas Poll with those regarding issues that are particularly timely.

• Perhaps the most timely of topics is Arkansans’ views on the “private option,” the distinctive Arkansas program for expanding Medicaid by funding participation of newly Medicaid eligible Arkansans in the health care exchange. That program was appropriated during the 2013 regular session of the General Assembly but will need to be reauthorized in the upcoming fiscal session. A healthy plurality (47.5%) of those surveyed do support extension of the program through reauthorization while just under a third oppose the program’s continuation. Just at one-fifth of respondents responded that they had no opinion or were unclear on their views.

• Looking inside these topline numbers, the most interesting trends were across partisan lines. Democrats and Republicans diverged on the issue—two-thirds of Democrats support the program while a plurality (45%) of Republicans oppose it. Perhaps not surprisingly, considering the division within the GOP leadership on the issues, Republicans were the group most likely to say that they “don’t know” their position. A plurality of independents (44%) support the “private option,” reflecting one of the few times in recent Arkansas public opinion polling where that group looks more like Democrats than Republicans in their attitudes.

• On the issues of abortion and same-sex partnership recognition, Arkansans show their traditional conservatism. These questions, replicating questions from the Arkansas Poll, are unsurprisingly very much in synch with the results of that annual survey. Just over half of those sampled (55%) voice support for measures that would make it more difficult for women in Arkansas to obtain an abortion. Again, partisan differences do show themselves with just over 80% of Republicans voicing support for making obtaining an abortion more difficult while just under 30% of Democrats share that view. Just over 60% of self-identified Independents favor additional restrictions.

• On the issue of same-sex partnership recognition, just at half of respondents oppose any legal recognition of gay couples’ relationships. Just under half do see a place for legal recognition either as civil unions/domestic partnerships (24%) or civil marriages (21.5%). Survey data across time has show that, while Americans as a whole are shifting views on marriage equality consistently and fairly swiftly, Arkansas is one of a handful of states where attitudes are changing decidedly more slowly.

POLL METHODOLOGY
This survey was conducted by Talk Business Research and Hendrix College on Sunday, Jan. 19, 2014. The poll, which has a margin of error of +/-4.3%, was completed using IVR survey technology among 520 Arkansas likely voters statewide.

Tuesday (Jan. 21) saw the Sebastian County Quorum Court move closer to issuing meeting packets in digital form. The night also included questions of County Judge David Hudson about revelations that a consultant brought into speak to the Quorum Court and Board about amenities at Ben Geren Aquatics Center actually raised concerns about the projects budget, but was told to keep his opinions on the budget quiet.

At a separate meeting of the Fort Smith Board of Directors, the Board approved issuance of about $35 million in bonds before moving to set an early date for City Administrator Ray Gosack's next performance review.

The Quorum Court took up the issue of moving to digital meeting packets during discussion of an appropriation ordinance to come before the Court for a vote in February.

During the discussion of the change to digital, Infrastructure Administrator Kevin Smith highlighted how the county could expend about $10,000 on equipment, including iPads for Court members to receive the digital meeting materials and an updated wireless network so they could access online material from the Quorum Courtroom on the second floor of the court house.

Justice of the Peace Danny Aldridge said the move, which saw all members of the Court voting to move forward with the proposal with the exception of Justice of the Peace John Spradlin, would save the county at least $15,000 a year in printed material costs, though he said the number would probably be significantly higher.

"At this point in time, the Quorum Court is getting a printed copy of the agenda and all of these backup documents for it," he said. "During the budget cycle, we're talking several reams of paper in one packet."

During the research on moving from paper to digital, County Director of Technology Services Leslie Harris said she had been in close contact with Fort Smith officials about the city's transition to all-digital meeting packets, which saved the city about $13,000 in costs each year.

She said aside from intensive training of technology-challenged Quorum Court members, there would likely not be much in the way of costs or any other downsides to making the move.

"The biggest hurdle will be training," she said. "You have to come up with a good training plan to get these guys comfortable. One-on-one (training) will probably be most effective."

Once an appropriation ordinance is approved next month, Harris said equipment can be ordered, installed and training can begin on county-issued iPads or other tablet devises as soon as May.

"We just didn't expect it to happen this fast," she said.

‘BLINDSIDED’
Before the meeting was adjourned, Justice of the Peace Shawn Looper called attention to an article published earlier Tuesday by The City Wire that highlighted the city's attempts to keep water park consultant Kent Lemasters concerns about possibly-inflated numbers tied to the Ben Geren Aquatics Center budget. Looper said not being provided the information made it tough for him to effectively do his job as a justice of the peace.

"Had I known he wrote that in an e-mail, I would have asked him how he plans on saving $3 or $4 million. But we didn't have that information at that joint meeting."

Looper added, "It's a little unsettling to vote on a project and then to be blindsided with this."

"I didn't blindside anybody with anything, Shawn,” Hudson responded. “The numbers on this, I'm not even sure what the background on…my involvement was to meet with this gentleman after the joint meeting. He did make some comments relative to cost. The main focus of that meeting was features."

Hudson, who was copied on an e-mail from Fort Smith City Administrator Ray Gosack that instructed city staff to keep Lemasters from discussing his concerns regarding the budget before the Quorum Court and the Board of Directors, said he was unaware of any e-mails regarding cost concerns.

"Yeah, I don't know about any e-mail. There may have been some discussion about what the focus of the meeting was because this project has gone for a whole year. We wanted to focus on making a decision (on amenities and design), which is what happened."

CITY BONDS
At Tuesday's meeting of the Fort Smith Board of Directors, Directors approved the issuance of bonds tied to a March 2012 sales tax measure.

The bonds sold on the bond market Tuesday averaged an interest rate of 2.96%, according to Deputy City Administrator Jeff Dingman, who added that demand for the more than $34 million in bonds was so strong that nearly $81 million in orders came in — ensuring all of the city's bonds sold with no problem.

Dingman said the reason for the city's delay in issuing the bonds approved in 2012 was due to certain regulations placed on the city by the Internal Revenue Service.

"When you issue a bond, you only have so much time to (use) the money until the IRS starts giving you trouble about interest and all sorts of stuff," he said. "I think we had authorization for $155 million or whatever the number was and we issued the bulk of them just after that election. But we knew we wouldn't be able to spend them all fast enough in order to satisfy their regulations, so we deferred the second phase of it until we were ready for the money."

The bonds issued Tuesday will fund the city's continuing efforts to improvement wet weather drainage improvements, as well as other sanitation improvements.

PERFORMANCE REVIEW
Tuesday's meeting also saw City Director Pam Weber bring forward a motion to conduct an early performance review of City Administrator Ray Gosack, whose last performance review was in July 2013, a review that resulted in Gosack receiving a 2.5% salary bump to an annual pay of $153,237.50, plus a car allowance of $5,400. Gosack was not scheduled to have another performance review until June

As for details about what will be discussed during Gosack's performance review, no one will know unless Board members decide to dish on details of the meeting after the fact due to personnel matters being discussed behind closed doors in executive session.

Asked why Weber was calling for a review, which will take place during the Board's regularly scheduled Feb. 4 meeting, she did not provide details.

"No comment on personnel," she said. "There's some things that I wanted to discuss with the administrator. That's all I'm going to say."

Weber went on to say, "A performance review is not something you take lightly."

City Director Keith Lau, who seconded the motion to place Gosack's performance review on the Feb. 4 agenda, would not provide specifics as for why he seconded Weber's motion, though he said he had been mulling the issue for some time.

"I can't say because it's a personnel issue," he said. "For me, it was a previously discussed issue."

Lau said his desire to put Gosack through his sixth performance review since 2011 was about philosophy, though stopping short of explaining what exactly that meant.

"Mine is a philosophical…what I'm wanting to do is a philosophical issue. It's about…Of course, that's probably all I need to say. I better not say."

A recently announced update to the Fort Smith School District's master plan has largely focused on the school's pitch for a third high school to be located at Chaffee Crossing. But included in the updated plan are anticipated capital projects to benefit the district's existing schools.

The largest of the capital projects includes the addition of of an events complex designed to serve all existing and future campuses within the Fort Smith School District.

A PowerPoint presentation detailing the master plan said the events complex would likely be built with state partnership funds and would address current and future needs within the district.

"The construction of an events complex to serve all Fort Smith Schools is planned to address needs for performing arts and indoor sports events which cannot be accommodated in current facilities," the presentation states. "This complex will include two separate facilities with shared parking for 1,500 cars."

The separate facilities would be a performing arts center and a multipurpose center.

While being the largest district in the area, Fort Smith has lagged behind districts such as Alma, Greenwood and Van Buren by not having a dedicated performing arts venue for students and the community. The planned $15 million, 45,000-square-foot facility will address the needs of Fort Smith students for a dedicated facility.

"This facility would provide seating for +/- 1,800 with first rate production space for musical and theatrical use as well as any other assembly purpose which the schools may need. It will be scheduled for school and community use as needed."

When presenting the plan to the Fort Smith School Board and the public at a Jan. 13 meeting, Superintendent Dr. Benny Gooden said the facility would likely be packed non-stop with school functions, adding that the month of December alone would have likely seen the facility booked each evening.

The multipurpose center is described as being similar to an arena, again another type of venue that other districts have invested heavily in while existing Northside and Southside High Schools have made due with facilities dating back decades.

The 110,000-square-foot facility is estimated to cost around $20 million to construct.

"This arena-type facility will be designed with flexible use in mind to accommodate 6,000 seated spectators. It can be configured for athletic-type events, large assemblies and other events requiring flexible space. School use will be prioritized, with community availability."

Gooden raved about the planned facilities and the benefit the district would see from the planned event complex, though no site has yet been selected.

He said while a site had not yet been selected, the one certainty was that all schools would share the facility.

"The solution that the Board has moved to is the idea of a complex that will be shared. It's a better use of the money, more cost effective long term and (it is) something every school could benefit from."

Also included on the list of partnership projects was a $2 million, 10,000-square-feet "media center and flexible lecture facility" at Southside High School, which Gooden said would bring the high school's media center into the 21st century.

The final set of projects included installing four safe room tornado shelters, two located at opposite ends of the building at both Northside and Southside at a cost of $1.4 million each. Funding for the project would be reduced through grants from the Federal Emergency Management Agency (FEMA), he said.

Gooden said the 2011 EF-5 tornado that destroyed the high school in Joplin, Mo., as well as 2013's EF-5 tornado that destroyed multiple schools in Moore, Okla. — resulting in multiple student fatalities — was among the reasons the district was pushing to finish installation of safe rooms at all of its campuses (the district currently has 23 safe rooms across its schools).

"We have two high schools that do not have tornado safe rooms and after I saw the video from Joplin, Mo., and what happens to what I thought was a pretty good high school in Joplin, Mo., and I saw the video of what the tornado did to their high school — and luckily there wasn't anyone in there at the time — their video cameras, their surveillance cameras told quite the story about what we've done for years is shelter yourselves in the corridors and try to find a reinforced place. When we saw what happened in Moore, Okla., I think we have a need to work on tornado safe rooms."

No specific timeline has yet been laid out for the completion of all the partnership projects.

The master plan is expected to be adopted by the Fort Smith School Board at its Jan. 27 regular meeting.

Online grocery is here and poised for steady growth in the next decade with Amazon expected to lead the charge.

Multiple surveys reveal that 11% of consumers are already buying groceries online. A study by Brick Meets Click found more than 10% of the 22,000 shoppers recently interviewed had made a grocery purchase online in the last 30 days.

A white paper by Kantar Research last year, noted that 11% of shoppers had purchased grocery items online in the past 90 days. Of that, 56% purchased those groceries from Amazon and that was prior to the launch of Amazon Prime Fresh. Anne Zybowski, a retail analyst with Kantar Retail, notes that Amazon has set the competitive bar for the grocery industry.

“Responding to – and revolutionizing on behalf of – the shopper, Amazon is set to learn from its Fresh launch in Los Angeles. ... it expects to roll out to as many as 20 other markets by the end of 2014, if Los Angeles proves successful,” Zybowski said.


She said despite “conventional wisdom” and the limited yet growing availability of online grocery delivery models in the U.S. (Safeway, Fresh Direct, Peapod, Coburns), shoppers are already purchasing groceries online. Kantar Retail expects online grocery to grow at a compound annual rate of 26%, moving from 1% of the US grocery landscape to 5% by 2020.

Bricks Meet Clicks research notes the online grocery market today is poised for a moderate growth scenario to 10.7% over the next decade. Bill Bishop of Bricks Meet Clicks said with this scenario, Amazon is already a "disrupter" by taking market share from brick and mortar chains. He said Safeway and Wal-Mart are two other national grocers also playing in the place. Bishop suggests the market growth could escalate to 16.9% over the next decade if Amazon or some other large retailer launched a dramatic rollout.

The experts said online sales are growing in popularity even though the market is highly fragmented with some niche retailers in targeted areas like San Francisco and Los Angeles.

Zybowski said while online grocery will by no means replace stores, appealing to today’s connected shopper will be critical to driving future growth. The new value proposition is delivering on convenience without a hefty price tag. Retailers that find this balance will win in the medium to long term, according to the market watchers.

AMAZONFRESH CATALYST
She said AmazonFresh is the catalyst to grocers to reinvent how to deliver convenience to shoppers. She pegs Wal-Mart and Safeway as the two national retailers in the direct line of fire.

“When will Walmart To Go move beyond a pilot phase?” Zybowski wondered, given that it’s been tested since 2011 in San Jose and San Francisco, and more recently rolled out in Chicago and Denver.

As the largest national grocer and one of the few already testing a home delivery model, she wants to know when Wal-Mart plans to expand the Walmart To Go. Wal-Mart grocery executive Jack Sinclair told analysts in October that consumer demand is not enough to justify the economics of online grocery sales and home delivery. He said then that Wal-Mart had the logistics and supply chain in place to roll it out at anytime should the demand or economics be there to support it.

Safeway is a national grocery retailer that offers delivery services in the California market and perhaps the most directly impacted from AmazonFresh, based on the fees charged. Zybowski expects to see Safeway offer more promotions for frequent shoppers that could be enticed away by AmazonFresh.

Kantar also expects to see an increase in the click-and-collect options as more retailers find themselves losing share to Amazon. Such shopping is where a consumer orders their list online. The items are picked from the shelves by a merchant and packed at the retail store where the shopper goes to pay for the completed order. Kantar Retail has covered this concept during the past 18 months. They found several regional grocers such as Harris Teeter, ShopRite and Stop & Shop are experimenting with click and collect models or curbside pickup at the store.

Peapod is has experimented with drive-thru locations in the Chicago area. They also offer home delivery for a nominal fee and Kantar expects to see more experimentation from Peapod in the coming year.


NICHE PLAYERS
Relay Foods is an organic grocer that serves six metro areas between Baltimore and Washington, D.C. Relay president Arnie Katz said the niche grocer continues to grow its customer base each month. He said consumers order their products online and they can chose to pick them up at drop location or have them delivered home for a fee.

“We pack the products into bins and load trucks early in the morning, the truck driver will then set up at general location and the consumers drive up to truck and get their order. This is a sustainable method of delivery. The driver can make more than 20 deliveries in an hour’s time from a stationary site. We have 100 of these pick-up site locations,” Katz said Wednesday (Jan. 22).

As the second largest national grocer behind Wal-Mart, Kroger has been on the forefront of digital marketing, but to date has not taken the plunge into the commerce side. Zybowksi expects to see some new initiative from Kroger this year.

Yummy.com is another niche player that is off to the races in southern California. This limited-item retailer offers store fulfillment for basic groceries delivered within 30 minutes of the order. CEO Barnaby Montgomery said Yummy.com fills an average of 20,000 online orders a month. While the retailer has four physical stores, between 50% and 70% of its business comes from online orders with home delivery. Montgomery said Yummy.com sells convenience and is growing at a healthy clip in the Los Angeles market.

Zybowski said even before AmazonFresh was added into the equation, New York City had become a hot bed of online grocery offers with Fresh Direct, Peapod, and ShopRite aggressively expanding to the metro area and looking to double the size of their businesses.

She expects to see an interesting battle for marketshare to ensue this year in response to AmazonFresh and the growing number of niche players entering the space.

More events held in the Fort Smith area like the upcoming “Battle at the Fort” volleyball tournament may be needed to improve the area hospitality industry and boost Fort Smith and Van Buren hospitality tax collections.

The volleyball event, which brings more than 6,000 people to the region, is hosted by Fort Smith Juniors Volleyball and is set for Jan. 25-26 (for ages 15-18) and Feb. 1-2 (for ages 10-14), and is held at the Fort Smith Convention Center.

In addition to Arkansas, teams often travel from Kansas, Missouri, Oklahoma, Tennessee and Texas for the tournament. It has grown to be the largest volleyball tournament in either Arkansas or Oklahoma, according to the Fort Smith Juniors organization.
 
“Last year we had a record year in terms of number of teams and we were just over 190. This year we are around 205 and the tournament continues to grow every year,” Club Director Greg Hale said in a statement. “When it first started nearly 15 years ago we utilized a few courts from the school system during one weekend. Today the tournament is spread out over two weekends and the club rents and places temporary courts in the Fort Smith Convention Center for two back to back weekends.”

Claude Legris, executive director of the Fort Smith Convention & Visitors Bureau, estimated that the 2013 tournament created a $1.831 million economic impact for the region.

“This total impact of nearly $2 million would probably have been higher had we not experienced some winter weather on the first go-round,” Legris explained. “Another important element is that we do see quite a few college volleyball coaches at this event doing some scouting for their incoming freshman classes which could mean that play in this tournament could become quite significant in for the potential of college scholarships. ... This has always been a great event for the local economy as well as the future for the participants.”

Tournament organizers have said the event fills up hotels and restaurants in Van Buren and Fort Smith.

Dev Pathik, CEO of Sports Facilities Advisory in Clearwater Fla., recently told The City Wire that spending on sports travel has steadily risen during the past few years and is largely fueled by youth sports. He said families collectively spend $192 million per day supporting their children’s sports activities. That ranges from gear, uniform fees, private lessons and travel to games often played each weekend during their appropriate seasons.

Youth sports and sports-related travel is creating an approximate economic impact of $7 billion per year, according to Pathik. Cities across the country have taken notice in recent years and competition for hosting tournaments for travel ball has become intense, he added.

The Fort Smith Juniors Volleyball Club is a 501c3 non-profit organization dedicated to giving female athletes, grades 3rd through 12th, the opportunity to learn, play, compete, and develop their skills at the game of volleyball. The club is made up of more than 20 teams and includes more than 200 players from all over the Fort Smith region, including communities as far away as Mena, Russellville, Fayetteville, Siloam Springs and eastern Oklahoma. The club season begins in November and typically concludes in April.

Fort Smith Juniors was started in 1994 by University of Arkansas at Fort Smith coach Jane Sargent, who at the time was a coach at Chaffin Junior High in Fort Smith.

FORT SMITH COLLECTIONS
Unfortunately, the 2014 tournament will not help boost the 2013 hospitality tax collection tally for Fort Smith.

Collections in Fort Smith for the first 11 months of 2013 totals $678,553, down 3.1% compared to the same period in 2012. However, Fort Smith hospitality tax collections have improved during each quarter. Collections were down 6.4% in the first quarter, down 1.6% during the second quarter, and down just 0.5% in the third quarter.

November collections were $53,789, down 3.7% compared to November 2012. The city collects a 3% tax on lodging.

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

VAN BUREN COLLECTIONS
Hospitality tax collections in Van Buren during the first 11 months of 2013 total $391,150, up just 0.09% from the $390,771 in the same period of 2012. November collections were $333,219, up 2.6% from the $32,383 in November 2012. The city collects a 1% tax on lodging and a 1% prepared food tax.

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.

Maryl Koeth, executive director of the Van Buren Advertising & Promotion Commission, said 2013 receipts will likely be higher than 2012, but is not optimistic about 2014 economic conditions.

“If this trend holds for December tax receipts we will end the year slightly above 2012. I am not forecasting any change in revenue trends for 2014. I think we will continue to see a very sluggish economic recovery with occasional setbacks during 2014,” Koeth said.

Although collections have been flat in Van Buren and down in Fort Smith, employment in the sector has held up on a year-over-year comparison. Employment in the region’s tourism industry was 9,100 during November, down from 9,300 in October and above the 8,900 in November 2012. The sector reached an employment high of 9,800 in August 2008.

More Arkansans feel the state is heading in the right direction than the wrong direction and a majority identify the economy and jobs as their top issue of concern.

In a new survey conducted on Jan. 19, 2014 by Talk Business and Hendrix College, 520 likely Arkansas voters weighed in on the economy.

About 55% said the economy and jobs were the most important issue facing Arkansas with health care (16%) and education (14%) being distant alternative choices. Also 48% said the state was heading in the right direction versus 36% who said the state was moving in the wrong direction.

Q: What is the most important issue facing people in Arkansas today?
14%  Education
55%  Economy and Jobs
9%   Crime
16%  Healthcare
6%   Some Other Issue

Q: Overall, do you feel that Arkansas is generally headed in the right direction or the wrong direction?
48%   Right Direction
36%   Wrong Direction
16%   Don’t Know

Dr. Jay Barth, professor of political science at Hendrix College, helped construct and analyze the poll. He offered the following observations.
• The issue that is of most concern to Arkansas voters is quite clear. A healthy majority of voters (55%) say that the economy and jobs is the preeminent political issue on their minds over five years after the start of the Great Recession.

• Other issues that sometimes get a good deal of air time, such as health care, lag dramatically behind economics. The centrality of the economy and jobs as the key issue crosses all demographic and political subsets of Arkansans. The key test for candidates in this political environment is offering a vision of an economic future for the state that resonates with voters.

• Just under half — (48%) of the respondents on our survey examining the attitudes of Arkansans at the start of an election year — say that Arkansas is on the right track while just over one-third (36%) say that Arkansas is now headed in the wrong direction.

• Because of the importance of the economy and jobs it appears that Arkansas’s relatively stable performance during the economic downturn is central to this positive evaluation. These numbers are quite consistent across key demographic and political groups.

• This general optimism about the state of Arkansas means that candidates for office that offer a vision of dramatic shifts in state government may have some obstacles to overcome.

POLL METHODOLOGY

This survey was conducted by Talk Business Research and Hendrix College on Sunday, Jan. 19, 2014. The poll, which has a margin of error of +/-4.3%, was completed using IVR survey technology among 520 Arkansas likely voters statewide.

The loss in Arkansas of more than $52 million in Supplemental Nutrition Assistance Program (SNAP) funding on Nov. 1, 2013, was expected to reduce benefits to recipients of the government aid by about $10 per month per beneficiary. But how the cut would translate to impacts on food pantries and other social welfare non-profits was an unknown — until now.

Figures provided by the River Valley Regional Food Bank in Fort Smith show an increase in the number of individuals who have received assistance from the food bank and its partner agencies across the region, which could be tied to the SNAP cut.

According to Ken Kupchick, director of marketing and development at the River Valley Regional Food Bank, the number of families served from November to December increased by 6.54% last year, from 14,922 served in November to 15,899 served in December.

"In 2012, the increase from those months into December was only 1.6%," he said.

Kupchick said the increase in number of families served between November and December occurred in spite of several pantries being closed for three days (in addition to holidays) due to an ice storm.

Kupchick also reported that the amount of food distributed by the regional food bank was its highest ever in 2013, with 7.51 million pounds of food distributed in 2013, a 15.62% increase from 2012, when 6.496 million pounds of food was distributed by the regional food bank.

"The food bank has grown double in size since the start of the 2008 (Great Recession)," he said. "Performance this year represents the third consecutive year of double digit growth at the food bank."

In 2012, the agency reported an increase of 17.89% while in 2011, the food bank distributed 5.10 million pounds of food, 32.63% more than it distributed in 2010.

Julie Tann, food coordinator and assistant director of The Hope Center in Van Buren, said the cut in SNAP benefits — a result of an expiring of funding originally part of the 2009 federal stimulus package — has put a strain on her facility.

"I'd say we're spending close to $200 to $300 each week (on food)," she said. "You can buy by the pound. But even with the discount, it gets (expensive)."

In October, before the cuts went into affect, Tann said her organization served about 180 to 200 people. That number now hovers around 250, many of them elderly individuals who she said only get $21 per month in SNAP assistance and cannot make ends meet. For the families that come to The Hope Center, Tann said they may get more than $100 for a family, but that is still a low amount in order to feed a family.

"A lot of your single parents, male or female, if they have two or three children, their benefits have been going down $10, $20 or $30, depending on their benefits."

As a result, already cash-strapped food pantries are seeing a large number of repeat clients versus new clients, and they are doing their best to keep the doors open without turning anyone away.

"I want (people) to see the need because this is what I see every other Saturday morning (when we distribute food)," Tann said. "The need is there. You can't look at a baby and say, 'Sorry. I can't give you any groceries.'"

Likewise, she said the hunger crisis among the elderly has reached an alarming level at her pantry, with some elderly turning to certain animal foods that may be cheaper than foods made for human consumption. The problem is especially apparent among the members of the working poor who receive fewer benefits should their monthly salary increase.

"The need is out there and it's really sad that they have to attempt to survive on $20 or $30 a month (in SNAP benefits)," she said. "And it's unfair that they can be deducted $8 because they got a $2 raise. To us, that's a loaf of bread and a gallon of milk. It's terrible that they are eating cat food and dog food for protein."

And while the numbers, at least on the surface, appear to point to an increased burden on food pantries due to the cuts to SNAP, Kupchick did urge caution.

"I am not comfortable in saying to what extent the 6.5% increase in families seeking help is attributable to the SNAP cutback, except to say we are hearing from all over the Feeding America network that the impact is there."

It was 11 months ago that Crawford County Sheriff Ron Brown made the pitch for an expanded county jail at its current Main Street location in Van Buren, an expansion that had a price tag of $24 million.

As time has passed from his initial meeting with the Quorum Court, Brown's idea has morphed into a new jail facility to be built away from the heart of town and at a cost of $20 million. The only catch? Brown and County Judge John Hall will have to sell county residents on a half-cent sales tax likely to be voted on May 20 — a quarter-cent to build the new facility and a quarter-cent for operations and public safety. The construction portion would sunset after 20 years, while the operations would be a permanent sales tax, Hall said.

If passed, the half-cent bump in the sales tax would make the county's two largest cities, Alma and Van Buren, some of the most heavily taxed communities (in terms of sales tax) in the nation, with a sales tax rate of 10% each.

With residents already facing high sales taxes to pay for projects either underway or planned for the future, Hall knows pitching an additional half-cent for the jail is going to be a tough sell, especially in a county that has rejected similar proposals to fund jail expansions three times before.

"Of course, I always have concerns that they will reject it," he said. "It's been rejected three times. You have to be aware that this is not a popular item. No one likes taxes. But it's up to us to inform the public about why we need this and how badly we need this so they will understand the need."

Hall, who has spent the better part of the last year discussing the jail with the Quorum Court and Brown, said the county was at a point where they either spend money on housing inmates in the county or spend about $200,000 each year transporting inmates to and from Crawford County for court hearings from facilities in other counties across Arkansas.

"We have to change something to overcome this overcrowding and the problem with our existing jail," he said.

The new jail will have capacity for hundreds of inmates and could easily be expanded due to the facility being built with modular jail cells, which allow for easy construction and installation and minimal staffing once operational due to a design that places guards in position to observe more inmates from a perch overlooking the jail's interior.

"We call it a wheel system," Hall said, “But it's a modular thing. It's the latest design in supervision. In the new jails, you can supervise them (the inmates) with a lot less people. They're in the sight of someone all the time. Technology is making it easier and easier to supervise and operate these things. It's still costly, still expensive. But in old times, it would take twice as many people (to supervise)."

As for whether the county's electorate will embrace spending $20 million for the new jail, Van Buren Chamber of Commerce Executive Director Jackie Krutsch said it all depends on how compelling the county can make its pitch to voters.

"I think that will depend on how well the county tells their story of the need for a new jail," she said. "I was not here in Van Buren when the other sales tax elections failed, so I don't have that history. ... It's going to be a wait and see situation."

Hall agreed with Krutsch's take, adding, "No one likes taxes, but it's up to us to inform the public about why we need this and how badly we need this so they will understand the need."

Looking at what long term impacts a possible 10% sales tax could have on the county, Krutsch said it would be hard to predict impacts. But she said for anyone concerned that a high sales tax rate could stifle growth, its a largely unfounded idea.

"I think in terms of recruiting industry, they're looking more at corporate income tax and incentives that the state provides," she said.

Krutsch also said Crawford County still has among the lowest property tax rates in the nation, a big draw for industry and residents alike. But she said whether residents liked it or not, essential government functions will always be funded through taxes.

"Public services have to have to be paid for, but what type of tax pays for the service? Roads, jail, fire and police projection all have to be paid for one way or another."

While Hall has real concerns about the chances of getting the tax passed, he said this time feels different and he prays he's right.

"Like I said, it failed three times. We hope the fourth time's a charm. We'll do our best to educate and give people what they need. When you go into the voting places, we would appreciate you going in and considering the facts we present."

The plan could be formally approved to place both quarter-cent sales tax proposals on the May 20 ballot following the next meeting of the Quorum Court's Jail Committee, a meeting Hall said he hoped would take place in the next week.

U.S. Rep. Tom Cotton, R-Dardanelle, reported strong fourth quarter fundraising numbers in his bid for the U.S. Senate on Thursday, the second quarter in a row he has outraised incumbent U.S. Sen. Mark Pryor, D-Ark.

Cotton reported raising $1.24 million during the fourth quarter of 2013, outpacing Pryor's $1.1 million raised during the same period last year.

Cotton's fundraising advantage did widen over Pryor, a vulnerable Democrat seeking a third term in the Senate. During the third quarter, Cotton — a Tea Party favorite who has sometimes voted opposite the other Republican members of the Congressional delegation — outraised Pryor by only about $5,000. The number in the fourth quarter has ballooned to about a $150,000 fundraising advantage.

Justin Brasell, Cotton's campaign manager, said the growing momentum in Cotton's fundraising is evidence that Cotton is connecting with voters on a very personal level.

"Arkansans are supporting Tom Cotton because he shares their values," he said. "Washington has clearly changed Senator Mark Pryor, causing him to vote 95% of the time with President Obama and his agenda that is hurting small businesses and driving up the cost of healthcare for working families. Arkansas doesn't need a Senator who will hand his voting card to Harry Reid whenever he asks for it."

While Cotton grew his fundraising advantage during the fourth quarter, he still stands at a significant disadvantage when it comes to cash on hand. The Cotton campaign has $2.2 million cash on hand, while Pryor is sitting on a war chest of $4.2 million.

When Pryor released his fourth quarter numbers on Jan. 13, his campaign manager made a point of highlighting Pryor's cash-on-hand advantage after 2013 that saw Pryor raise a staggering $5.3 million in order to keep his Senate seat, a sign that the 2014 Arkansas Senate race will be among the most expensive in the nation as Democrats fight to keep control of the Senate.

"Heading into the election year, Mark (Pryor) will have every resource to remind voters about his record as a reliable and responsible voice for Arkansas families, while drawing clear contrasts with Congressman Cotton’s reckless agenda that puts his own interests ahead of Arkansans,” said Jeff Weaver, Pryor for Senate campaign manager.

But as then-U.S. Rep. John Boozman, R-Rogers, proved during his late entrance in the 2010 Republican primary that saw him sweep the field and eventually unseat U.S. Sen. Blanche Lincoln, D-Ark., low fundraising figures do not necessarily mean a candidate is weak.

When Boozman entered the race in January 2010, he transferred the $305,000 he had raised for his House re-election to his Senate race. Just days before his announcement, Lincoln announced raising $1.3 million during the fourth quarter of 2009, leaving her with a $5 million campaign account heading into the 2010 race.

Lincoln went on to lose to Boozman by more than 20 points  in the general election — 57.9% for Boozman versus 36.95% for Lincoln.

Even with being at a disadvantage in cash-on-hand, Cotton's campaign has moved forward in its efforts to unset Pryor recently opening a campaign headquarters in Little Rock to house the small campaign staff and a growing army of Cotton loyalists volunteering to get the word out about Cotton to a state that may not be familiar with the first term Congressman.

"Your campaign headquarters is where your volunteers come to help out and you can't win a large statewide race like this without a strong grassroots volunteer base of support and that's what Tom (Cotton) has and we're growing it every single day," Communications Director David Ray told The City Wire at Cotton's campaign headquarters grand opening on Jan. 11.

No candidates have announced primary challenges to Cotton or Pryor, making each their party's presumptive nominees.

J.B. Hunt Transport continues to set the bar high in the logistics sector despite caution from Wall Street about conflicting signs in the overall economy.

The Lowell-based logistics giant posted another record quarter to end 2013 reporting net earnings of $92 million, or 77 cents per share. Bottom line profits improved 9% from 70 cents a share pocketed a year ago, but the company narrowly missed Wall Street’s consensus estimate by two-cents per share.

Total operating revenue for the fourth quarter was $1.47 billion, up 9.7% from the year-ago period and inline with analysts expectations.

Shares of J.B. Hunt tumbled lower on Thursday (Jan. 23), trading down about 1.5% at $78.13 in the morning session as it followed the bearish coat tails of the broader market descent.

Operating income for the quarter increased to $153.5 million versus $143.3 million for the fourth quarter 2012. The increase primarily reflects higher revenue on greater load volumes and improved network balance in firm’s intermodal unit. These improvements were partially offset by increased costs paid to hire and retain drivers; higher workers’ compensation and accident costs; increased costs to third party carriers, fewer gains on equipment sales and lower truck utilization.

For the full year,  J.B. Hunt posted total revenue of $5.584 billion, rising 10.4% from a year ago. Net earnings of $2.87 cents per share, or $342.3 million, increased 10.8% and 10.3% respectively from the prior fiscal year.

Wall Street is split on its sentiment for J.B. Hunt in 2014. Stephens Inc. ranks the logistics leader as “overweight” or favorable to buy, given a target price of $87 per share in the next 12 months. That said, Stephens recently trimmed its 2014 fiscal guidance for J.B. Hunt from $3.55 per share to $3.25. Wall Street consensus is $3.39 per share.

J.B. Hunt’s estimate for fiscal 2014 includes revenue growth of 11%, as the firm expects operating income to rise between some 13% to 15%, which analysts believe is a little aggressive.

“We think J. B. Hunt still has significant leverage to the cycle and has one of the most defensible and diversified business models in the transportation space. We remain comfortable recommending shares for long-term investors given the opportunity for an improved intermodal pricing environment and firm’s leverage to improving supply-demand dynamics,” Stephens analyst Brad Delco noted on Jan. 8.

John Larkin, an analyst with Stifel, ranks J.B. Hunt shares as neutral, a hold position based on softening rates and the additional interest expense J.B. Hunt will see as it finances $700 million in capital expenditures for fleet replacement and growth strategies in place.

“We continue to believe that shares of J.B. Hunt are slightly over-valued ... we think the Street estimate will come down and our 12-month fair value estimate of $66 implies over 10% downside risk over the coming year,” Larkin noted in November.

4Q SEGMENT HIGHLIGHTS
Intermodal transport continues to be the bread and butter for J.B. Hunt comprising two-thirds of the companies total revenue and 79% of the firm’s operating income. J.B. Hunt posted a 13% increase in its intermodal loads during quarter ending Dec. 31, which helped to drive an 11% rise in segment revenue to $915 million. This unit posted operating income of $121.5 million in the quarter, rising 17% from a year ago.

The company said its Eastern network loads increased 17% and transcontinental loads increased 11% compared to the same quarter in 2012. Despite the increased number of loads the revenue per load slid 1.3% from a year ago, most of which was linked to customer rate increases and volatile fuel prices. J.B. Hunt had ended the year with approximately 66,000 units of trailing capacity and approximately 4,100 power units in the dray fleet.

Dedicated Contract Services (DCS) segment revenue increased by 17% to $330 million in the fourth quarter. The increase in revenue resulted from 1,154 net additional revenue producing trucks, mostly due to converting customers’ private fleets, the company said. Productivity (revenue per truck per week) was virtually flat compared with the fourth quarter 2012 due to the higher percentage of customer provided equipment and customer paid fuel in this segment’ book of business. DCS operating income totaled $29.5 million, up 0.5% compared to the same quarter 2012.

J.B. Hunt’s Integrated Capacity Solutions (ICS) segment revenue increased by 13% to $145 million in quarter. This move up is linked to a higher load count and an increase in revenue per load. Revenue grew faster than volume primarily due to a change in freight mix driven by customer demand. That said the segment posted a 24% decline in its operating income for the quarter pocketing $3.5 million. Gross profit margin decreased to 12% in the current period from 14.1% last year. This is partially linked to higher third party carrier rates seen during the quarter. 
Meanwhile the firm said it continues to expand this brokerage division, adding nine more branches and 11% more employees in the past year.


J.B Hunt’s laggard Truck (JBT) segment posted a 19% decline in revenue in the quarter primarily from an 11% reduction in fleet size compared to a year ago. The unit posted $91 million in total revenue in the quarter. The segment reported a 2.7% decreased in rates and 4.6% shorter average length of haul, when compared to a year ago. It’s important to note that the 2012 rates were favorably impacted because of added demand created from Hurricane Sandy relief efforts. At the end of the period, the trucking segment tractor count was 1,857 compared to 2,093 in the fourth quarter 2012, primarily from a reduction in independent contractor capacity. 
The trucking unit incurred an operating loss of $1 million in the quarter compared to operating income of $5.2 million in the same quarter of 2012. 


The previously announced personnel and leadership changes are expected to address and improve tractor utilization, maintenance and customer service issues that have impacted the profitability of JBT.

“We expect to demonstrate operational improvements throughout 2014, but significant financial improvements will become more apparent in 2015,” the firm noted in the release.

BY THE NUMBERS (Year-over-Year)
Gross Revenue
2013: $5.584 billion
2012: $5.054 billion

Net Income
2013: $343.382 million
2012: $310.354 million

Earnings-per-share
2013: $2.87
2012: $2.59

Total Assets
2013: $2.819 billion
2012: $2.464 billion

Net Capital Expenditures
2013: $442.5 million
2012: $369.6 million

Current Liabilities
2013: $712 million
2012: $502 million

Long Term Debt
2013: $458.4 million
2012: $585.3 million