The debate over whether Arkansans can openly carry a firearm in public continues, and this time the University of Arkansas' law school has thrown itself in the middle of the debate.

In an article published on the Arkansas Law Notes section of UA Law's website, Associate Professor of Law Laurent Sacharoff and law student Jacob Worlow explain that "(s)ometimes the legislature — well — screws up."

They say while HB 1408, which would have allowed for open carry of licensed individuals, failed to win enough votes for passage, HB 1700 likely did accomplish "that very goal, and perhaps even permitted concealed carry without a license," even though the title of the bill said it was only enacting "technical" changes to the state's current gun laws.

Sacharoff and Worlow point to the language of Section 120 of the old and new laws.

"First consider the old Section 120, which made it a crime to possess a handgun with the “purpose” to use it as a weapon 'against a person.'…The new Section 120 changes the language of this purpose element by adding the word 'unlawfully.' It is now illegal to possess a handgun only if the person has the 'purpose' to use it 'unlawfully' against a person."

That said, the authors said "since practically anyone can reasonably say they intend to use the gun for self-defense, that would mean nearly anyone can carry a gun without a permit, open or concealed."

Even though it appears the law, which is in affect, would allow any law-abiding citizen to openly carry a firearm, the authors said it could still come under judicial scrutiny, largely based on questions of legislative intent and also the history of similar laws in the state.

That said, Sacharoff and Worlow said it was likely "a court facing a defendant arrested with a gun would interpret the statute based upon its plain meaning. When all is said and done, how can the court punish a person for following the literal and unambiguous meaning of the statute? A person should not be expected to consult the history of the law’s passage, or its political context, to understand what it proscribes."

LAW NOT A SCREW UP
Rep. Denny Altes, R-Fort Smith, said in a Facebook post Sunday linked to the UA Law article that he and his fellow legislators "did not screw up."

Altes said open carry had "been the law in Arkansas since at least the 1800s. He said through several attempts to update the law through the years were unsuccessful, he was able to strike the right balance with the language of HB 1700 to please groups including the Sheriff's Association, the Chiefs of Police Association, the Prosecutors' Association and the State Police.

"The old code was written so there were many defenses to carrying a weapon. So, I asked why not make it a right with exceptions. This met with approval from everyone. It seems that it is two sides of the same coin," he wrote. "So, we didn’t really change the law, we only clarified that it is a right to keep and bear arms according to the Second Amendment of our Constitution (According to Webster’s 'bear' means 'to carry')."

ATTORNEY GENERAL OPINION
Attorney General Dustin McDaniel in August of 2013 said the new law did not allow for an individual to do more than possess a handgun within that person's personal transportation when on a journey outside of the person's residential county, adding, "In offering this conclusion, I must stress that Act 746 in no way modifies the rights and obligations conferred upon those individuals who have obtained a concealed handgun permit pursuant to the pertinent provisions of the Arkansas Code."

That has not stopped a large number of law enforcement agencies and prosecutors from across Arkansas from declining to arrest or prosecute individuals found openly carrying a firearm. Among them, Fort Smith Police Chief Kevin Lindsey and Fort Smith Prosecuting Attorney John Settle, who said prior to an open carry protest walk in Fort Smith that there has to be proof of an “attempt to unlawfully use” a weapon against another person.

Reached for comment, Public Information Officer Aaron Sadler of the AG's office said, "The (Attorney General's) opinion speaks for itself."

OPEN CARRY RESPONSE
Steve Jones, communications director and a board member for the pro-2nd Amendment group Arkansas Carry, who organized the Fort Smith walk and several others around Arkansas, said the lack of consistency between McDaniel and others is a "shame."

"That's a shame that they cannot get on the same page even with the law department at the University of Arkansas," he said.

Jones said while Fort Smith was not abiding by McDaniel's opinion, other agencies are.

"I've contacted the Arkansas State Police back in August and they are going with what the Attorney General says. Any law enforcement who does not want to read the law exactly as it is written refers back to the Attorney General's opinion, which is basically ignoring what the law says. That's a shame because it's just flat wrong,” Jones said.

Since the law went into affect, there have no known arrests except of "people who were already committing crimes, which is how the law reads," according to Jones.

"Other than that, we do not know of anyone. We're looking and waiting to see if someone could be arrested to see how a law case would come out."

But if that is going to happen, it would require more and more agencies to take the stand of the ASP instead of the reception some open carriers have been receiving.

"I know there are individuals across the state who open carry in Walmart, restaurants, and we've had no problems at all. We've even had law enforcement contact without any arrests,” Jones explained.

That said, Jones said as questions about open carry continue, it is important for Arkansas gun owners to use caution before strapping on a gun and leaving the house.

"We ask them if they want to carry a gun to contact law enforcement in their area and see how they are approaching this law. We are not telling people to open carry because it's legal. I want them to be sure to stay safe."

He said while it is the opinion of Arkansas Carry that openly carrying a firearm is legal, he has been surprised by the Attorney General and others who have said HB 1700 does not allow such behavior.

"Everyone who reads the law and reads it as a law that basically does not punish a person for exercising their rights can see that it's legal, except law enforcement. For some reason, law enforcement wants to arrest law-abiding citizens for carrying a handgun."

More consumers plan to sock away their tax refunds which is bad news for retailers like Wal-Mart who are sitting on higher inventory levels two months removed from what was a disappointing holiday season.

Last week the National Retail Federation warned members that a new survey predicts 46% of those expecting a tax refund this year intend to save the money. The so-called savers outnumber last year just slight at 44%. About 67% of consumers surveyed said they anticipate a refund check from Uncle Sam.

The NFR Survey Results include the following findings.
• 38% plan to pay down debt
• 25% need the refund for everyday expenses
• 13% will spend it on a vacation
• 11% will treat themselves

The NRF also reports that about one in four of those surveyed had already filed taxes. Another 37% plan to do this month (February), and 26% said they would file in March and 15% said they would wait until the last minute.

Given this slower pace to file, retailers are holding out hope they can still woo shoppers in with big clearance sales, especially on big ticket items such as electronics, left over from unsold holiday inventory.

Bill Simon, CEO of Walmart U.S., said during last week’s media call that tax refund activity is running behind this time last year, but has started to pick up a little momentum.

Retail analyst Doug Hart, with DBO USA, said it makes sense that consumers plan to save back refunds this year, given that consumer debt has been on the rise, especially in December and January.

INVENTORY LEVELS
Simon said last week that recent fourth quarter inventory grew 3.8%, moderating from prior quarters but it was still higher than the rate of sales. He said the retailer remains committed to disciplined inventory management and is well positioned for spring seasonal conversion.

Inventory overruns are leading to deep discounts for many large ticket items such as Apple iPad 2 16 GB for $299 or 60” Vizio LED HDTVs for $798, a savings of $201.99. Large displays of unsold televisions are positioned to catch shoppers eyes as they enter some supercenters. Other stores have them lined up in the rear “Action Alley” aisle and Walmart.com continues to feature them in daily email notices to customers that have previously ordered online.

Wal-Mart also noted that its entertainment category, which includes toys, posted negative comparable sales in the fourth quarter. Sales were negative mid-single digits, according to Simon. The retailer said it was able to pick up market share with positive reactions from the “one-hour guarantee” program on Black Friday. 

“While we were pleased with the our share performance, we continued to face challenges related to ongoing entertainment industry contraction,” Simon said.

According to research firm NPD Group, consumer electronics sales fell 2.4% to $22.9 billion during the 9-week holiday period.

The inventory excess and discounts are not limited to electronics, as Wal-Mart advertises “thousands of clearance items” in its February Savings Day’s marketing campaign. Tires, mattresses, camping gear and small appliances are some of the other  categories featured in Wal-Mart’s newest rollback campaign.

WEAK FORECAST
One main concern from analysts following Wal-Mart’s recent tepid forecast for this quarter is that this aggressive pricing to move out inventory is further eroding gross margins. This could hinder top and bottom line results if the consumer stays cautious.

Comparable sales at Walmart U.S. were down in the first two weeks of February due to bad winter weather. For the 13-week period ending May 2, Walmart U.S. expects comp store sales to be flat. Comp sales declined 1.4% in the prior-year period.

The weak forecast was enough to prompt Stifel Nicolaus to downgrade its rating on Wal-Mart shares to a “hold,” or neutral position, as it plans to sit on the investment sidelines to see how the retail behemoth navigates through the next few quarters.

Shares of Wal-Mart Stores (NYSE: WMT) closed Monday at $73.35, up 23 cents. The shares have been on a downward trend since the start of this year. For the past 52 weeks the share price has ranged from an $81.37 high to a $70.44 low.

Development and business friendliness took center stage for much of a more than hour long brainstorming session of the Fort Smith Board of Directors on Monday night (Feb. 24).

The session, which was absent a set agenda in order to allow a free flow of ideas among Board members and the administration, started with City Director Keith Lau simply asking what the city could do to make it easier for citizens needing to do business with the municipality. He cited specific examples of individuals having trouble with permitting for construction and subsequent inspection issues.

City Director Mike Lorenz said from his perspective, it seemed that all complaints seemed to center around inspections.

"I think it truly is the difference between…an inspector knows the rules of what can and can't be done, what is code, what isn't code. But that isn't translated correctly at all,” Lorenz said.

City Director Pam Weber, who acknowledged receiving two inspection-related complaints on Monday alone, said city staff "has to be careful how we say things," adding that reducing rules and regulations already on the books as some citizens have called for would not fix the problem. She said one of the goals of the administration should be to help staff in the planning department find a way to work with customers, developing "a customer service attitude."

Among the talk of inspections, permitting and planning came ideas for expanding the city's use of online building permits to streamline the process, something City Administrator Ray Gosack said had been re-introduced to the city last year after a multi-year absence. The absence was brought on, in part, by the low usage compared to the cost of upkeep for the online portal, he said, adding that he was hopeful usage would increase with the online procedure being re-introduced.

City Director Philip Merry also floated the idea of having retired volunteers on site to help individuals and business owners find their way through the permitting process at the city offices on Garrison Avenue, though Weber said a simpler procedure would simply be to provide individuals a list of what they would need to do to fulfill the city's requirements for permitting and inspection.

During the discussion on making Fort Smith more friendly to businesses and residents, which the Board hoped would attract industry, Weber floated the idea of purchasing more items for the city locally.

"I know there's some rules on who we do business with, how we do it. But part of the things we do is we give a lot of contracts worth a lot of money and I know we have to bid those and that type of thing. But it really irritates me that we don't do local. Like we buy cars in Texas, that type of thing. And I'm wondering if there is a rationale?"

She questioned Police Chief Kevin Lindsey about why new Tahoe police cruisers for his department were not purchased locally, to which he said no local dealership had the vehicles he needed therefore necessitating buying the vehicles from a dealership outside of the Fort Smith area.

Deputy City Administrator Jeff Dingman said the city could look into the possibility of an ordinance that would require taking a local bid if it was within a certain percentage of the lowest overall bidder, though he said city attorneys would have to explore the legality of such an ordinance within the state of Arkansas.

Gosack did not speak against any such action, though he said it was important for the Board to keep in mind that not taking the lowest bidder on large contracts could turn into large amounts of additional taxpayer dollars being spent.

"You know, last week you awarded a sewer construction project for nearly $13 million. If you had a 5% local preference in there, you could leave three-quarters of a million dollars sitting on the table. …Arkansas used to on construction contracts, the state did have a policy allowing 5% in-state bid preference and I think they realized when you get into these multi-million projects, it's a lot of money that could be left on the table."

Other ideas discussed at the meeting included:
• Implementing a building design standard for all city-owned buildings;
• Exploring whether a casino was still a possibility along the Arkansas River near downtown;
• Possibly hiring additional city planners to fill the needs of the city; and
• Improving railroad crossing safety across the city.

The Board did ask for a resolution to be developed that would state the city's willingness to conduct itself in a more business friendly fashion.

The next brainstorming session of the Board will be held May 27.

Day One of political filing in Arkansas saw contestants for U.S. Senator, Congress, Governor, and Lt. Governor file paperwork at the state capitol.

Arkansas’ candidate filing period for this year’s election cycle opened at noon on Monday (Feb. 24) as more than 250 candidates put their names on the dotted line.

U.S. Rep. Tom Cotton, R-Dardanelle, filed for the U.S. Senate. Former U.S. Rep. Asa Hutchinson and Curtis Coleman filed for Arkansas Governor for the GOP primary, and U.S. Rep. Tim Griffin, R-Little Rock and Rep. Andy Mayberry, R-Hensley, for Lt. Governor.

No Democrats filed for those offices on day one, but they are expected to file later in the week.

For Congress, Democrat James Lee Witt made his Fourth District candidacy official as did Republican Rep. Bruce Westerman. U.S. Rep. Rick Crawford, R-Jonesboro, and U.S. Rep. Steve Womack, R-Rogers, filed for re-election for their First and Third District seats, respectively.

In the Second District Congressional District, Democrat Pat Hays filed as did Rep. Ann Clemmer, R-Benton, and Republican French Hill.

All told, more than 135 candidates filed for races that included federal offices, constitutional offices, state representatives, and state senators. Another 125 filed for judicial or prosecutorial offices.

The candidate filing period will close at noon on Monday, March 3.

Whirlpool Corporation has submitted yet another revised Revised Final Work Plan to the Arkansas Department of Environmental Quality (ADEQ) as the company prepares to start remediation efforts well ahead of previous estimates.

In the previous update to the remediation plan in January, the company stated that three phases of chemical oxidation would be necessary for the company to begin to break down trichloroethylene (TCE) in the groundwater below its former Fort Smith manufacturing facility and a neighborhood to the north of the shuttered factory. The first phase was scheduled to begin in Spring 2016, with a second phase to begin a year later.

Earlier plans had indicated a completion date for remediation of 2018.

The latest plan submitted Monday (Feb. 24) outline a revised schedule which would begin phase one remediation work this month, continuing until April. Phase two would begin in May and continue through June, with subsequent phases to follow "based on results of earlier phases," according to the document submitted Jeff Noel, Whirlpool's corporate vice president of communications and public affairs.

Noel wrote that the schedule was able to change significantly due to ADEQ's previous approval of Whirlpool's plans to begin pre-design activities late last year.

"The pre-design data collection has now been completed, which will provide critical information needed to push forward with the next steps," he said.

He said certain uncontrollable circumstances, such as weather and completion of "access agreements," could delay the schedule.

No date was given for when an impermeable soil cover would be applied to the Whirlpool site. The cover was a requirement from ADEQ to ensure that TCE would not resurface at the company's former manufacturing site.

Deputy Fort Smith City Administrator Jeff Dingman said he was pleased with the sped up timeline, though he said the quicker timeline for implementation was not a result of any added pressure from the city.

"No, but throughout the process they've continued to show interest in doing what they need to do and getting it done," he said, adding that the change in schedule was "encouraging."

City Director Keith Lau openly questioned whether the Board of Directors'deliberation on whether to impose nuisance fines against the company as a result of the TCE pollution of not only its site, but the neighborhood north of the site, played any role in the sped up timeline.

"I wonder what, if any, our conversations in the last month have promoted that (speed up) or if that's just something that's happened (coincidentally). Either way, it's good."

Noel gave no further indications for why the company was speeding up the remediation, though he said Whirlpool's commitment to correcting the situation had not wavered.

"As we have stated previously, Whirlpool remains committed to staying in Fort Smith to work with ADEQ, area residents and the City of Fort Smith until this project is complete."

A U.S. Chamber of Commerce official warned an Arkansas audience that overregulation of fracking practices in the oil and gas industry could cost jobs, tax revenue, and the overall economy.

Karen Harbert, the president and CEO of the U.S. Chamber Institute for 21st Century Energy, was a featured speaker at an Arkansas State Chamber of Commerce/AIA luncheon held at Heifer International’s world headquarters.

Harbert touted a litany of energy statistics that highlighted that in the next 35 years the world’s electricity demand will increase by 140%. Harbert also noted:
• The oil and gas industry created 9% of all American jobs in 2011;
• Oil imports are expected to decrease 60% by 2020;
• Oil and gas production has led to an American manufacturing renaissance as well as a return of chemical, fertilizer, and steel industries.

She said that the natural gas “fracking revolution” has helped feed the nation’s energy demand. Harbert said that Arkansas is now the No. 4 natural gas producing state in the U.S., according to recently released 2013 data from the U.S. Energy Information Administration (EIA). According to a “marketed production” report from the EIA, Arkansas ranked 8th in 2012 in natural gas production.

During the past decade, shale gas production has risen from two percent of the nation’s energy mix to 30% today. That number is expected to rise to 50% by 2035. But Harbert said regulatory intervention by the Environmental Protection Agency (EPA) could undermine that trend.

“What if the 13 federal agencies looking to regulate fracking are successful?” she said. “We have to keep it attractive.”

Harbert said a Colorado ballot initiative to allow local governments to supersede state fracking laws could also be detrimental if other states follow suit.

According to Harbert, Arkansas’ natural gas industry is expected to create 52,000 new jobs and produce nearly $900 million in tax revenue by 2020.

A relatively higher price and the continued production of natural gas from existing wells resulted in a record of $62.685 million in Arkansas’ gross natural gas severance tax revenue during 2013. The tally was up more than 53% compared to 2012 collections and up more than 6.4% over the previous high set in 2011. In 2009, the first year of the severance tax hike, Arkansas joined the list of the nation’s top marketed natural gas producers when sales of Arkansas natural gas spiked 57.5% to 690 billion cubic feet (Bcf). Arkansas natural gas sales rose another 36.1% to 939 Bcf of annual production in 2010, according to figures from the Arkansas Department of Finance and Administration and the federal Energy Information Administration.

Harbert also touted that coal, gas, oil and nuclear power must remain a crucial component of the nation’s energy policy. She said that there is no quick or easy way to remove U.S. dependence on low-cost coal as a fuel for generating electricity despite efforts to replace it with alternative fuels.

“The dinner party is still going to be the same,” she said. “”We’re going to need it all.”

Harbert is a former assistant secretary for policy and international affairs at the U.S. Department of Energy (DOE). She was the primary policy advisor to the DOE Secretary and to the department on domestic and international energy issues, including climate change, fossil, nuclear, and renewable energy and energy efficiency.

Scott Hamilton, director of the Arkansas Energy Office at the Arkansas Economic Development Commission, said Harbert’s message is a welcome discussion in the state.

“The points she made are very valid,” he said. “We have to have an energy focus in the U.S., and Arkansas has to continue to find ways to educate [this need] at the local level.”

The U.S. Chamber has developed a nine-point action plan for U.S. energy policy.

Northwest Arkansas is becoming a hotbed of innovation for startup ventures looking to make a name for themselves among an impressive junior alumni group such as Amy Callahan of Collective Bias, Jay Howard with I.O. Metro or John James and Terry Turpin of Acumen Brands.

“The past five years have been incredibly remarkable with the velocity of entrepreneurial startup ventures in the region,” said Jeff Amerine, director of technology ventures at the University of Arkansas.

An ecosystem of support has evolved, also, with at least five active angel investment funds to help with seed money and early stage capital. Equally important, Amerine said, there is active engagement from the state level down to local chambers of commerce from leaders who understand the importance a thriving entrepreneurial sector can have for moving the economy forward.

The downturn in the economy was the catalyst for this local movement and now that the “flywheel” is in place, Amerine said sustaining high levels of intensity could be a challenge, although there is no sign yet of a letdown. Longer-term, he said, the region must commit to educating future technical talent beginning in grades K-12 to make sure there is an ample workforce with specialized technical skills.

“Startups that grow require more talent. Without it, the region and state run the risk of losing those companies to areas with more abundant technical centers,” Amerine said.
“It is good to hear our local schools and two-year colleges making commitments in these areas.”

WIth respect to funding, Amerine said it’s always hard for startups, but there are more options for local companies than ever before. He said the angel fund networks are applying more rigor to their selection and investment process and hope to work more with private equity capital partners in the future with $1 million to $2 million stage investments, a level that has been lacking.

More than 300 startups launched in Northwest Arkansas in the last five years, raising more than $190 million in funding to do so. Amerine said the bulk of that capital was raised last year and put the region on the map as a viable place to start a business.

“There is no shortage of ideas in this region and the state. We continue to see really strong candidates and some solid business plans presenting for capital infusions,” said Ramsay Ball, an angel investor and mentor for several startup ventures in the region.

With the help of entrepreneurial advocates like Amerine and Ball, The City Wire has tagged five new companies in various early business phases as the ones to watch in 2014. Oh Baby Foods, Overwatch, Silicon Solar Solutions, EcoVet and DataRank were selected because they have talent, capital and ideas — three main ingredients necessary for success, according to local advocates and investors. Some of these five startups may thrive for years, some may get acquired and some may fizzle. (Videos from four of the startups may be viewed at the end of this story.)

OH BABY FOODS
Oh Baby Foods and its founder Fran Free are dubbed the pacesetter for this year’s class. She launched Oh Baby Foods in 2009, armed with two college degrees, a baby on board and $50,000 of her own money. Product hit the shelves on daughter Lucy’s first birthday.

Free said she toted Lucy from store to store as she tried to sell her way into the retail space. Oh Baby found a following, but keeping up with the growing demand for the product has not always been easy.

Free almost quit two years into the effort. She developed a frozen baby food product that was offered in several retail outlets, but profits were nil and the seed money was almost gone. That’s when an angel investor stepped in and provided the capital she needed to reformulate the product to go on the shelf in the baby food aisle. Free worked with Whole Foods to get additional funding in 2012 to convert to squeeze packets and the retailer put in her more than 200 stores across the country.

“Sales are up 1,113% in our Whole Foods business since we went to the squeeze packets in September,” Free said.

She said Whole Foods accounts for 40% of her business, and she has retailers regularly calling and wanting the product. Free said she has secured a line of capital from Arvest Bank, but is at a crossroads that requires carefully evaluation of how the capital is used.

Expanding into regions like the Northeast U.S. is costly, she said, but there are many offers from specialty stores in the area or moving to the area. Working with food brokers and distributors, Free said there would be numerous fees and promotional costs associated with taking on a new retailer in a region far away from her processing production in California.

Free recently hired a new "options analyst,” someone who carefully evaluates all the options for future distribution the company receives each week.  

"We are having to turn down retailers. We want to grow, but we are being cautious about how fast," she said. “We have four employees and just moved to a new office in the Three Sisters Building in downtown Fayetteville.”

Free said the future is bright for Oh Baby, but getting a handle on how many stores and retailers they serve is a constant challenge as there is limited inventory and sales visibility with 60% of her wholesale customers.

“I was eager enough to fake what I didn’t know in those early years, but the business is becoming more complicated as it grows. There is a lot to process mentally each day. We are a close team and we are working really hard to make the best decisions for the company’s future,” Free said.

ECOVET
EcoVet began as S.A. Concepts in 2012, a startup venture dedicated to provided liveable wage jobs for military veterans also trying to get a college degree. S.A. Concepts initially hoped to secure nonprofit status as a workforce program but because the employees were manufacturing a product for sale, the company was denied non-profit status.

Drake Vanhooser, co-founder of S.A. Concepts, said last year the company was approached by EcoArt 360, a locally based supply chain management company that took over ownership of the workforce venture. At that time the name was changed to EcoVet and the focus moved from making aero dynamic skirting for semi trailers to crafting wood furniture that could be sold to furniture retailers.

EcoVet takes old semi trailers headed for the graveyard, breaks them down and reclaims the maple and oak planks that make up the trailer flooring. They sell off any extra scrap metal and use the wood for their furniture. EcoVet employs nearly 30 full-time workers, running two shifts a day in their Springdale facility. The workers have the capacity to break down three trailers a day.

Vanhooser said the company sources its trailers from Wal-Mart and several large trucking companies which is challenging because they are often located hundreds of miles from the Springdale manufacturing center.

He said these are interesting times for EcoVet as they have been building up inventory to take to Sam’s Club for a Road Show next week in San Antonio at a new club opening.

“We have 24 of these Sam’s Club opening Road Shows to do in the next few months and hope this will lead to the retailer purchasing the product for online or in club merchandise. We are working with two other prominent furniture, home furnishing retailers about carrying the EcoVet products,” Vanhooser said.

The 2014 goal for this company is to ramp up sales, so more veterans can be hired.

DATARANK
Harnessing the power of big data, Ryan Frazier and his DataRank team help companies sort through social media feeds to better understand the power and influence of their brand and company image within the cyber world.

Frazer and co-founders Kenny Cason and Chuong Nguyen started the company they first called TTAGG while in college at the University of Arkansas in the fall of 2011. Frazier said they changed the name to DataRank last year because they felt it better told their story.

In two and a half years DataRank has been able to market their analytical dashboard software to numerous customers, namely consumer packaged goods (CPG) brands such as Clorox and Callaway Golf.

DataRank uses nine dimensions that they divide into two categories: content influence and user influence. They then prioritize the best, most actionable information from the content feeds.

Frazier said DataRank’s strength is its ability to take cumbersome data sets and make them more manageable. While the startup pales in comparison to well-known data analytic firms such as Nielsen, Frazier said the sector is still ripe with opportunity.

Since founding the business, the company has grown to nine employees with plans to ramp up to 12 in the next few months. They recently closed a deal for $1.4 million in funding and are looking to add a smaller investment in the next few months from a local angel network. Frazier said that should be adequate funding for a couple of years as DataRank continues to grow its customer base. Sales grew 350% during 2013 and Frazier said the company is profitable.

Frazier sees the big data industry only get bigger. He said it took time to get the technology scaleable, but now that it’s available, DataRank is signing partnerships with agencies and marketing firms in addition to signing on new CPG customers.

A recent study of 75 North American retail executives found that 46% of retailers considered the volume of information they had to deal with to be their biggest challenge. That creates an even bigger need for companies like DataRank.

SILICON SOLAR SOLUTIONS
Silicon Solar Solutions, co-founded by Douglas Hutchings in 2008 while he was a graduate student at the University of Arkansas, has grown from a class assignment into a nationally recognized solar technology company with a spinoff startup known as Picasolar.

Hutchings later earned his doctorate and has expanded the company to eight employees, all with advanced engineering degrees. In October, Silicon Solar received a SunShot Incubator Award from the U.S. Department of Energy. The award came with $500,000 in funding which was targeted toward early-stage assistance for startup companies seeking to commercialize their inventions.

The company has developed patented solar technologies since 2008, subsisting on private capital raised along with numerous grants and awards at the state and federal level. Silicon Solar Solutions also licenses core intellectual property to existing solar manufacturers. The recent award is for a patent-pending process that will increase the efficiency of solar cells.

“Our goal is to prove our technology on industrial cells and work towards Arkansas-based manufacturing of the equipment,” he said.

The newest technology is a self-aligned hydrogenated selecting emitter for N-type solar cells that was invented by Seth Shumate, the chief technology officer for Silicon Solar. This product could improve the efficiency of solar cells by 15% and save an average-sized solar panel manufacturer $120 million annually and make solar energy more affordable for consumers, Hutchings said.

The emitter is marketed through Picasolar Inc., a sister company that shares the same senior management and board of directors as Silicon Solar Solutions.

Hutchings said the company’s next move is to raise $2 million from private investors or strategic partners. This would help Picasolar partner with an equipment manufacturer to prove if the technology can be scaled for production in the marketplace.

The SunShot Initiative is a collaborative national effort to drive innovation to make solar energy fully cost-competitive with traditional energy sources before the end of the decade.

“As part of the SunShot award we have access to the testing labs affiliated with the Department of Energy, which is helping us speed up the process to manufacturing phase,” Hutchings said.

OVERWATCH
The new kid on the block in this group of local startups is 17-year-old Josh Moody, CEO of Overwatch. He is finishing his senior year at Little Catholic High School and helping to scale-up his company that was an idea only eight months ago.

Moody’s idea marries video game play with physical outdoor activity such as laser tag, airsoft and paintball. Moody said it’s a $70.4 billion market, $19.1 billion of which is combat video games.

He took his idea to RevUnit, a software development company in Bentonville, in hopes of hiring them to create the application. But Joe Saumweber and Michael Paladino of Red Unit loved the idea so much the three of them partnered together and decided to toss the business concept into the ring for the ARK Challenge.
arkchallenge.org/

In that 14-week competition Overwatch secured a partnership with Cybergun for the gun hardware rights and distribution, which will give them access to online stores and 9,000 store fronts where they do business, including Cabella’s and Wal-Mart, Moody said.

Overwatch was one of three ARK Challenge winners selected in September. Since then, Moody and team have been developing the application, which is 90% complete for iOS and Android smart phones. Along with the application, Overwatch has developed a casing for the phone that attaches to the gun.

“We are working on the final design prototype for the casing that will be manufactured by Cybergun. Once the app is complete we have about 70 users designated for beta testing. We should be to that phase in the next couple of months,” Moody said.

He expects the commercial product launch of the hardware casing will to happen later this summer. The app will be a free download with the purchase of the casing. Overwatch plans to upsell premium gaming services to frequent users for added revenue.

He said the startup has raised $170,000 in capital funding with plans to secure up to $450,000 more in the next few months as they are pitching to several of local angel networks.

“Overwatch is approaching a vital point as we begin testing and prepare to launch the app and case simultaneously later this summer. From idea to manufacturing in just 8 months is a rapid ramp-up,” Moody said.

Wal-Mart’s Mexican business unit, Walmex, did not have much to cheer about last year, as comp sales throughout Mexico were down between 2% and 4% every month. But despite those problems, the retailer plans to invest $1.8 billion in expansion efforts this year.

David Cheesewright, the new CEO of  Walmart International, said consumers around the world are stressed, with “significant slowdowns” in numerous markets, including the faster-growing developing countries.

Fortunately the operating climate in Mexico is showing signs of recovery and Cheesewright said the retailer plans to make hay during the sunnier times.The retailer expects to spend $633.38 million opening new stores, adding 3.7 million square feet of space. Mexican floor space will grow 5%, with Central American stores expanding 7.6%.
The plan calls for $263.9 million dedicated to remodeling and maintenance. It will devote $90.48 million to logistics and $143.26 million to e-commerce and other technology. Cheesewright and his executive team in Mexico made the announcements during an investor conference in Mexico City on Monday (Feb 24).

The Mexican market is important to the retailer’s overall international portfolio which Cheesewright characterized as “big and complex,” operating 6,300 stores in 27 countries under around 300 banners. If Walmart International stood on its own, it’s $136.5 billion in annual sales would make it the world’s second largest retailer behind Wal-Mart, Cheesewright said.

He said the retailer must move faster to ensure it has the products, shopping formats and conveniences that consumers want when they realize they want it.

“We have to be there when the customer arrives,” Cheesewright said.

LOOK AHEAD
Wal-Mart executives note ample growth opportunity as the population decline from recent years has stabilized at 1.2% annual growth in the past two years. The population of Mexico is young, which means there will be a demographic bonus of 10 million more adult consumers within the next five to 10 years. More women are also working, but adds to household buying power, the executives said.

The retailer’s food and grocery business, and small store formats are performing well and there is a push to expand e-commerce toward general merchandise. The retailer launched general merchandise on e-commerce just this past summer.

Cheesewright said Walmex still sees potential pressure on profit margins from a new tax on high-calorie food and beverages, and an increase of value-added tax in border cities from 11% to 16%. 

“We expect moderate improvement in the economy, driven by government investment and increased remittances from the U.S.,” he added.

Walmex execs also continue to look for alternatives to strengthen financial service products for customers. The retailer recently ended its relationship with BBVA Bancomer, who issued co-branded credit cards for the Walmex.

SAM’S TURNAROUND
Sam’s Club in Mexico represents 27% of Wal-Mart’s Mexican business, and 22% of Walmex overall which includes Central America.

The warehouse club reported negative 4.4% comps during all of last year losing sales among its Advantage members and its wholesale members. The retailer operates 156 clubs in Mexico and says there is room for more growth.

There are major changes under way to win back Sam’s Club shoppers throughout Mexico, according to the company. Execs with the retailer said they will focus on price, excitement, bulk and quality for Advantage members who shopped elsewhere last year.

Sam’s Club said it lost sales to department stores, competitor club, and drug stores last year because it did not meet shopper expectations. Going forward Sam’s said it is focused on treasure hunt excitement as well as luxury and fresh consumables — bakery, deli and Sam’s Cafe.

The retailer plans to leverage it’s relationship with Sam’s Club U.S. to work more exclusively with top brands in apparel, food and luxury. Lastly, Sam’s Club Mexico is relaunching its e-commerce site, something that is sorely needed, the executives said.

WALMEX INFO, HISTORY
Walmex operates 2,199 stores under eight banners employing 248,373.
1991: Wal-Mart opened its first store outside the U.S. — Sam’s Club in Mexico City.
1997: Wal-Mart acquired a majority position in Cifra.
2000: The name changed to Walmart de México (WALMEX). 
2006: Walmart de México received a banking license in Mexico.
2007: Banco de Walmart began operations with 16 branches in five states of Mexico. 
2009: Walmart de México acquired Walmart Centroamérica, expanding its presence to six countries and becoming Walmart de México y Centroamérica.

Plans for a third Fort Smith high school are coming under more scrutiny after a Monday (Feb. 24) school board meeting in which a group of concerned residents requested more due diligence be done before the district ultimately decides that another high school is needed.

Plans for a third Fort Smith high school have been discussed for some time, though a formal pitch for the more than $65 million high school was made at a January school board meeting.

At the time, Dr. Benny Gooden said the district needed a new high school due to continued enrollment increases in the district coupled with an eventual plan to re-align the schools to have freshman be on high school campuses instead of the current configuration, which places freshman in the city's junior high schools.

According to Gooden, the district's current population of 14,313 students was expected to blossom to about 17,000 students by the year 2023, which would necessitate the re-alignment.

Sam Sicard, president and CEO of First National Bank of Fort Smith, was among a group to express concerns with the plan. One of the primary points Sicard makes is financial.

"The concern that we have is with all the operational costs of a third high school," he told The City Wire on Tuesday (Feb. 25). "We don't know what the operational costs of Northside and Southside (High Schools) are, but we guess it's a pretty large number. As students increase, you'll increase operational costs."

Sicard said the concern among himself and about 20 others, including several prominent members of the Fort Smith business community, include the costs not only of a building, but also funding extracurricular facilities, such as gyms and activity centers, as well as administrative offices. The additional costs trickle down all the way to office staff and coaches — all taking away from funding that could go toward academics if the district did not construct a new high school.

The group also expressed concern in a memo to the school board about the impact that developing a third high school in Chaffee Crossing could have on the rest of the community.

"If you drive around town, there are all of these areas throughout the center of the city where you see a lot of vacant homes," Sicard said. "If you built a state-of-the-art high school out on the periphery of our community, it will continue to attract people to that area and result in a lot of vacant houses in the core of our city and declining real estate values and declining appearances of many of the properties in the core of our city."

In addition to the two major concerns of costs and deterioration due to outgrowth, Sicard said the group is also concerned about the district's enrollment projections.

"Some of us in the business community have trouble understanding how enrollment will be as rapid as they are saying (it will be) based on what we are seeing in the economy," he said. "We're questioning whether those projections…we're not doubting the continued growth or (need for more) capacity, but it surprises us that it would be that aggressive."

In order to ensure the district makes the best decision regarding future building needs, Sicard proposed that the district bring in an outside consultant to do a facilities assessment for the district to find out if it building another high school would be in the district's best interest or if expanding the existing schools would be more beneficial. He said he and his business colleagues were asking such questions after comparing Fort Smith to similar-sized districts across the state.

According to figures provided by the Arkansas Department of Education, Fort Smith is on par with most of the state's largest districts in terms of the number of students enrolled and the number of high schools in each district. Following is a list of the state's largest districts with their corresponding number of high schools (2012-2013 school year):
• Little Rock Public Schools: 23,676 students, five high schools;
• Springdale Public Schools: 20,542 students, two high schools;
• Pulaski County Special School District: 17,060 students, five high schools;
• Bentonville Public Schools: 15,081 students, one high school (plans are underway for a second high school);
• Rogers Public Schools: 14,757 students, two high schools;
• Fort Smith Public Schools: 14,313 students, two high schools;
• Cabot Public Schools: 10,172 students, one high school;
• Conway Public Schools: 9,733 students, one high school; and
• Fayetteville Public Schools: 9.421 students, one high school.

Sicard said while it may appear that he and his fellow business leaders are against school funding or the millage increase that could come before voters sometime in the next year or two, it is simply not the case. His group just wants to see the most money possible spent on academics, "to see it used in a way to take us to the next level in way of academic achievement for our students."

He said the fact that the board is taking the time to conduct due diligence was appreciated.

"We don't think they're wrong for (proposing) the third high school, we just have concerns and want all alternatives researched and evaluated due to the concern we have," Sicard said. "We're really grateful that Dr. Gooden and the (school) board were willing to listen to our concerns and pursue a study. We're thankful that they're responsive to some of the concerns in the community and we appreciate that."

Gooden did not respond to a request for comment.

Business leaders who signed the memo to the school board include: Bobby Aldridge, Mike Barr, Shannon Blatt, Kent Blochberger, Phillip Bryant, Gary Campbell, Steve Clark, Brandon Cox, Sen. Jake Files, Richard Griffin, Jason Green, Melissa Haynesworth, Scott McClain, Rep. George McGill, Sam Sicard, Pastor Kevin Thompson, Jim Walcott, and Fred Williams.

Progress on the River Valley Sports Complex inched forward Tuesday (Feb. 25) during a study session of the Fort Smith Board of Directors, but not without serious questions about how the city can protect itself from investing money in the project should it not be completed.

At issue was a proposed agreement between the RVSC and the city of Fort Smith, which outlines contractual agreements and expectations of both parties for the city to eventually purchase the completed facility to be built at Chaffee Crossing.

In changes RSVC would like to see to the agreement, RSVC partner Lee Webb requested the removal of a section requiring a construction bond, a change that City Director Keith Lau said put the city at risk.

City Director Philip Merry came to the defense of RSVC, explaining that Webb and RSVC partner Jake Files were individuals organizing the tournament-level softball facility.

"You've got two citizens who do not have an entity, that they are giving sweat equity to the city to coordinate a benefit to the city and then they have an aggregate group of commitments for in-kind donations and such."

Merry went on to explain that for a group like RSVC, which has no assets, to secure bonding, Webb and Files would have to personally put up collateral to secure a bond, something he said neither men should have to do.

"Lee and Jake are offering up concepts to the city and trying to help coordinate an effort, but I don't think either one of them should be asked to bond and tie up their net worth, which is what a bond would require."

City Administrator Ray Gosack told the Board that in most other situations, the city would require a bond in order to make sure a project involving the city would be completed as promised. But he said the specifics of the situation with RSVC were different enough to not have such a requirement. He added that he was confident in the ability of Webb and Files to deliver on the project, which was sold as a project that would be funded with the passage of a sales tax initiative in 2012.

During discussion about the bonding, the Board came back to an issue discussed during the last study session on the ballfields, which was the cost estimates presented by RSVC and the city. According to Parks and Recreation Director Mike Alsup, the city estimates completing the ballfields to cost between $6 million and $8 million. The cost estimate of RVSC is considerably lower — just more than $4 million.

Due to the differences in estimates, City Director George Catsavis said it sounded like a "big gamble" to him and said he'd need some sort of assurance that RSVC could complete the project for the estimate the group has quoted to the city.

Merry asked, "How can they (Webb and Files) be so wrong?"

In order for the Board to feel secure in funding the project without performance bonds, and to feel comfortable that the eight field facility can be built for stated price of little more than $4 million, the Board requested that formal letters detailing donations, bids and other items that detail how the project will be built and financed.

Webb said he would start securing letters to have to the Board in time for their March 4 regular meeting, which will include a vote on moving forward with the project as part of the Board's consent agenda.

In other business, the Board moved to place a vote on the March 4 agenda that would renew the city's fleet and property insurance. The only change from the previous year to this year is the raising of property insurance deductibles from $25,000 to $50,000 for wind and hail occurrences, an increase that was partially due to the level of catastrophic weather events to take place in the last year or more, according to City Purchasing Manager Alie Bahsoon.

The growth of entrepreneurial programs and financing support seen in recent years in Northwest Arkansas may soon be repeated in central Arkansas.

More than 300 startups launched in Northwest Arkansas in the last five years, raising more than $190 million in funding to do so. Jeff Amerine, director of technology ventures at the University of Arkansas, said the bulk of that capital was raised last year and put the region on the map as a viable place to start a business. (The City Wire announced Tuesday the five Northwest Arkansas-based startups to watch in 2014. Link here for that report.)

Gov. Mike Beebe said during a Tuesday (Feb. 25) event in Conway that he believes fostering innovation is one of the most important investments the state can make to ensure future economic growth. The Arkansas Economic Development Commission contributed $575,000 in seed money for the new regional Innovation Center in downtown North Little Rock. The AEDC grant announced this week is part of a capital campaign for the 15,000-square-foot multi-use facility that will be part business incubator, think tank and technology workshop.

"The total capital budget is $1.1 million for this phase of the project, and we will be announcing additional secured funds in the coming week," said Rep. Warwick Sabin, D-Little Rock, and executive director of the Arkansas Regional Innovation Hub.

INNOVATION HUB
The Innovation Hub strives to increase entrepreneurial activity by creating a network of resources, programs and education opportunities to attract, develop and retain emerging talent while building the state’s economy.

“The nature of our economy is changing, and if our state wants to compete for the best and brightest minds, we need to change the way we think and do business,” Gov. Beebe said in a statement. “The Innovation Hub attracts those who think outside the box and who will forever change the economic climate in the area. They will be our business leaders of tomorrow.”

The entrepreneur movement began to catch fire in Northwest Arkansas as the national economy went sour in 2008, according to Amerine. He said that excitement has spread eastward in past couple of years toward central Arkansas finding continued support from the state economic leaders and local chambers of commerce from Fayetteville to Jonesboro.

Amerine said regional entrepreneurial hubs supported with angel funding networks, mentors and educational opportunities is critical to keep innovative juices flowing.

Josh Clemence, co-founder of the Northwest Arkansas Entrepreneurial Alliance and Iceberg project in Fayetteville, said the Innovation Hub has been a longtime coming for central Arkansas.

“Arlton Lowry and Dustin Williams are two unsung heroes that have been pushing for more cohesion in the entrepreneurial sector in central Arkansas. It’s good to see the wheels are turning,” Clemence said.

ENTREPRENEURIAL CONNECTIONS
The connections between central and Northwest Arkansas’ entrepreneurial communities are close, despite a healthy competitiveness. In the recent ARK Challenge competition held in Fayetteville, four of the nine startups making it to the found round of competition were teams with central Arkansas connections. Overwatch, one of the three winners in the ARK Challenge, has founders in both areas — Josh Moody, a high school student at Little Rock Catholic and Joe Saumweber and Michael Paladino, who founded RevUnit, a Bentonville-based startup. This trio continues to work toward the launch of their gaming application and casing device on target for later this summer.

Clemence said it’s also a positive that the ARK Challenge will be held in central Arkansas this year, after several years of being held only in Northwest Arkansas. He said there are also efforts being made in Jonesboro to foster entrepreneurial advocacy.
arkchallenge.org/

“Our new Innovation Center builds on the best practices from successful national models to create a broad set of resources for people of all ages here in Central Arkansas,” Sabin said. “We will provide the opportunity for everyone to discover and develop their interests and talents and unlock their unlimited potential.”

Sabin also will oversee the Central Arkansas ARK Challenge competition slated for this fall.

The first phase, the Argenta Innovation Center, will include four components:
• The Launch Pad will provide cutting-edge tools and technology for professionals and amateur tinkerers alike. There will be 3-D printers, laser-cutting machines, and other equipment that can be used to prototype inventions and refine products. Educational opportunities will be provided for people of all ages as well as support for local manufacturers and corporations that want to solve problems or provide additional training.

• The STEAM Lab will be operated in partnership with the EAST Initiative to offer STEM (science, technology, engineering, mathematics) education across a variety of ages and disciplines. Expertise in these areas is critical for Arkansas’s workforce to be prepared for jobs in the 21st Century. This classroom and laboratory will have advanced equipment and technology along with the nationally-recognized training in computer coding, programming, and computer-aided design (CAD) that EAST has provided to Arkansas students for the last 20 years.

• The Silver Mine is a co-working space for entrepreneurs and small business owners looking for networking and enrichment activities. It will also be the home to vertical business acceleration programs that will seed and mentor promising new enterprises from Arkansas and around the world. The Silver Mine will be able to incubate and give birth to a steady stream of new businesses, where ideas can connect with capital and other resources.

• The Art Connection is an after-school and summer work program for high-school students designed to develop leadership and innovation through hands-on training in the visual arts industry. Modeled after the successful Artists for Humanity program in Boston, Massachusetts, the Art Connection works with arts organizations, local artists, business owners, city government and others in the community to provide practical skills for under-resourced youth.

The innovation center recently received a $250,000 grant from the Delta Regional Authority.

“We are proud to join Governor Beebe and AEDC in support of this program and to invest in what will be a great opportunity for Arkansas’ small businesses and entrepreneurs,” Chris Masingill, federal co-chairman of the Delta Regional Authority, said in a statement. “The Innovation Hub will provide the programming and resources necessary to further our mission of creating jobs and helping to build an innovative and technologically-advanced environment for our region’s entrepreneurs.”

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

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

In an interview with Roby Brock for the upcoming issue of Talk Business magazine, Richard Davies, executive director of the Arkansas Parks & Tourism Department, said the recent spell of cold weather around the country may result in people wanting to get outdoors when temperatures rise. Combine that with what Davies said is an improving consumer confidence, and the state could see more travelers in 2014.

“I think we’re going to have a good season this year. I think holding on during the bad times was a victory,” Davies said in the Talk Business interview. “From what I can tell, if the weather will let us alone for a while, we’re going to have a good year. I think people are a little more sure about the economy. I think they’ve got a little money in their pockets. And I think after this winter, they may have some severe cabin fever they want to solve. So I’m looking forward to a good year.”

MIXED RESULTS
Although collections were up in 2013, results were mixed around the state. For example, the four largest cities in Northwest Arkansas reported $5.32 million collected in hospitality taxes for the full year, up from the $4.99 million during 2012. The cities also reported 6% gains in their fourth quarter hospitality tax receipts, compared to the prior year. Fayetteville, Rogers, Springdale and Bentonville collected $1.31 million in hotel and food taxes during the months of October, November and December.

While October and November were strong months, inclement weather has since prompted cancellations and lackluster traffic among business and leisure travelers, said Roger Davis, general manager of the Springdale Holiday and Convention Center.

Hotel operators across Northwest Arkansas have recorded revenue in excess of $128.564 million during 2013, up 10.7% over 2012, according to Smith Travel Research.

Hospitality tax collections were not as strong down the road from Northwest Arkansas. Collections in Van Buren during 2013 totaled $423,221.83, remarkably close to the $423,222.91 during 2012. December collections were $32,071, down 1.2% from the $32,451 in December 2012. The city collects a 1% tax on lodging and a 1% prepared food tax.

Maryl Koeth, executive director of the Van Buren Advertising & Promotion Commission, said wintry weather in December likely resulted in the monthly decline. She said the January tally will also see a weather effect. Koeth said she expects 2014 tourism activity to be similar to 2013.

“Lodging ended the year above last year, but restaurants were down and are staying down. Due to the economy, specifically the smaller paychecks, we continue to see a change in the dining out patterns of consumers. I don't see that changing in the near future,” she said.

Collections in Fort Smith during 2013 totaled $731, 057, down 2% compared to the same period in 2012. The gap in collections improved through the year with first quarter collections were down more than 6% compared to the 2012 quarter. For the fourth quarter, collections were up 0.62% compared to the 2012 quarter. The city collects a 3% tax on lodging.

TOURISM INDUSTRY EMPLOYMENT
The rise in overall tax collections is reflected in job numbers for the industry. Arkansas’ tourism sector (leisure & hospitality) employed 103,400 during December, down from a revised 103,700 during November, and above the 102,900 during December 2012. At a revised 103,700, the November employment tied a record for the sector that was first reached in January 2013.

Montine McNulty, director of the Arkansas Hospitality Association, noted in the Talk Business interview that the tourism industry also is a job engine for the state.

“One thing about our industry is we continue to need people. It’s not going to be replaced by robotics or anything else. We’re in the service industry and we’re going to have to have people,” McNulty explained.

Travel and tourism industry employment also reflects tax collections in Northwest Arkansas and the Fort Smith metro area.

Employment in the Northwest Arkansas tourism industry was 21,400 during December, down from 21,900 in November and up from 20,400 during December 2012. September employment of 22,300 was a new record for the sector.

Employment in the Fort Smith metro tourism industry was 9,000 during December, down from 9,100 in November and above the 8,700 in December 2012. The sector reached an employment high of 9,800 in August 2008.

O.K. Foods is under new leadership after the resignation of CEO Paul Fox, but the company is keeping quiet as to why Fox may have left the company.

Donna Miller of O.K. Foods confirmed in a telephone call with The City Wire that Fox had resigned from the company, but declined to provide details or the date his resignation became effective.

"If there is anything to be said, I'm sure someone will call you back," she said Wednesday (Feb. 26). "I can't make a statement on any of that. I was just told that he resigned. I'm not privy to any of that."

According to Fox's LinkedIn profile, he came to O.K. Foods in January 2012 after serving for nine months as managing director of Sao Paulo, Brazil-based Marfrig Group, one of the world's largest meat producers, and president and CEO of Dickinson Frozen Foods for about four years.

NEW CEO
With Fox's departure, Senior Vice President of Sales and Marketing Trent Goins has been promoted to president and CEO of the company, according to his LinkedIn profile. Goins' father if former O.K. Industries CEO Randy Goins.

Goins started his career at O.K. Foods as a management trainee in January 2003 before becoming a regional sales manager in January 2005, a position he held for four years. During that time, he has served on the board of the National Chicken Council and the Arkansas, Oklahoma, and Missouri Poultry Federation. Goins is currently an executive committee member of the National Chicken Council.

Prior to joining O.K. Foods, Goins was a legislative assistant for agriculture and trade policy in the office of former U.S. Rep. Marion Berry, D-Gillett.

The Fort Smith-based O.K. Foods was founded in the 1930s as a feed manufacturer, according to the company's website. It eventually moved into processed poultry in the 1950s before opening a state of the art research and development facility in the 1990s.

On Nov. 11, 2011, Celaya, Mexico-based Industrias Bachoco, itself a poultry producer, closed a deal to acquire O.K. Foods and its more than 3,000 U.S.-based employees. The deal, estimated at $93.4 million, made the combined company the third largest chicken producer in North America, according to O.K. Foods.

FOX HISTORY
Fox came to Dickinson after a 17 year tenure at Tyson Foods that included stints as vice president of international operations and vice president of processed meats operations. It was during his tenure as vice president of international operations that Fox and several other Tyson executives were reported to have come under investigation for alleged bribery, according to a June 2011 article in The New York Times.

The Times article detailed memos that alleged possible payments in order to keep inspectors at Tyson's Mexican plants  "from making problems." Investigations by the United States Department of Justice and the Securities and Exchange Commission followed, though no charges were ever filed against Fox or any of the other Tyson executives who were investigated.

Additional phone calls and e-mails to O.K. Foods seeking comment for this story were not returned.

Prospects of an outside company managing the golf course at Ben Geren Golf Course appear dim as two Sebastian County advisory boards have voted not to recommend moving forward with a proposal from Orlando, Fla.-based Cypress Golf Management to take over control of the golf course from the county.

According to County Judge David Hudson, the proposed rate of $6,000 per month to manage the facility and other high fees were just too much for both the Parks Advisory Board and the Golf Stakeholder Committee, both of which met at different times Tuesday (Feb. 25).

"I think it was just basically that the proposal required an additional allocation of $92,400 a year with the county continuing to carry the budget and paying a percentage of any capital improvements. So what does that offer the county moving forward at this point versus continuing to operate the golf course and putting $90,000 more into the course?"

The plan, unsealed in the Quorum Courtroom of the Sebastian County Courthouse on Feb. 19, was the only proposal received after the county put out advertising for bids to lease the golf course from the county. The proposal itself was opposite of what the county desired to see in proposals since it charged the county not only the $6,000 management fee, but also up to $1,700 per month in travel expenditures as well as the other expenditures Hudson mentioned.

Justice of the Peace Danny Aldridge, whose district includes Ben Geren and its golf course, did not sugar coat his opinion of the proposal when reached for comment Wednesday (Feb. 26).

"The proposal that was submitted was a management agreement rather than a lease agreement proposal. This is not what the county was looking for. All this would do is add debt to the budget. This would not benefit the county or taxpayers in any way,” he said.

With both advisory boards voting to not recommend entering into the Cypress agreement, Hudson said he would work with both bodies to develop a proposal to take to the Quorum Court at its March 18 discussion meeting that would address how the county can move forward.

As part of the proposal to be developed by the advisory boards and Hudson, he said marketing will be a large part of the plan as will ideas for how to increase play at the course, which sees competition from the Deer Trails Golf Course at Chaffee Crossing, as well as country clubs in Fort Smith.

To be more competitive, Hudson said another part of the plan will be to change the large number of various green fees at Ben Geren.

"That is one of the goals it to simplify our rate structure. We have daylight and twilight rates, a weekend rate, packages. We are trying to simplify those rates in consideration of the regional competition."

The golf course, which lost the county about $180,000 last year, is projected to lose tens of thousands more this year.

For that reason, Aldridge said whatever proposal is presented to the Quorum Court should be detailed with specific proposals instead of broad ideas. He added that the Court would also need to give the golf course time to make a success of whatever proposal is presented and possibly adopted.

"I don't think it would be fair of the Quorum Court to say you have one year to pull this out," he said. "If they come back with a two or three year plan and showed consistent strides of getting there, I think that would be acceptable to most of us. But they have to come with a hard, fast plan and a plan that is achievable. If they say their goal is to increase rounds, that don't get it. They have to (have hard numbers and projections) and this is how we will go do it."

The Cypress plan, with recommendations from both advisory boards against it, and the proposal from Hudson and the advisory boards will be under consideration during the March 18 meeting of the Quorum Court.

Aldridge reminds residents that the meeting is open to the public and there will be an opportunity for public comments during the meeting.

The Barling Board of Directors on Tuesday (Feb. 25) passed a resolution that officially requests the Arkansas Municipal League to lobby for legislation that would change a nearly 80 year old state law restricting Barling from voting on whether it wants to be a wet or dry city.

The vote on the resolution comes after a November 2012 vote by residents to turn the city wet was ruled invalid due to Arkansas laws which states cities in a dry county, such as the lower township of Sebastian County, cannot choose to go wet. The same statue allows cities in wet counties, such as Washington County, to vote on whether to stay wet or go dry.

Matt Ketcham, city attorney for Barling and an attorney for Fort Smith-based Nolan Caddell Reynolds, said the city's decision to ask the municipal league to lobby for the legislation on their behalf was about making state law fair.

"Our argument the whole time has been that it's unfair (to deny Barling the right to vote on this issue). It's a violation of the Equal Protection Clause of the Constitution. There is no reason to discriminate against some cities and not others. There's no reason to deny that right to some cities."

Ketcham said the city is seeking the assistance of the Arkansas Municipal League due to the overwhelming opposition any sort of change in the legislation is likely to receive.

"The last time (changes in legislation were proposed in 2013), there was a lot of opposition to it both from the existing alcohol lobby and all the people who run liquor stores. The last thing they want to see is more stores. It cuts into their business. They want to be the only game in town, especially if they are on the border (of a wet and a dry county)."

Don Zimmerman, the executive director of the Arkansas Municipal League, said in a telephone call Wednesday (Feb. 26) that Barling's desire to see a change in state law is among the few alcohol-related issues to come to the League lately.

"It's kind of yes and no," he said. "Barling is the only one that I've heard of in their particular circumstance. I have heard from a couple of retirement communities wanting to sell mixed drinks. But Barling is just wanting to go wet, I guess, and have liquor stores and all."

The communities of Fairfield Bay, Horseshoe Bend and Cherokee Village are not asking for the ability to sell alcohol outright, but instead are wanting to have the ability to sell mixed drinks without a private club license, which is how many businesses in dry counties currently get by laws limiting the sell of alcohol in dry counties.

As for how the Municipal League will determine whether to take up lobbying on the issue, Zimmerman said a decision will be made at the group's annual convention in June when its resolutions committee votes on various resolutions submitted by Arkansas cities. A vote on the recommendations of the resolutions committee will take place June 20 at the Municipal League's annual business meeting.

Ketcham said in order to get the League to possibly take up Barling's cause, the resolution approved by the Barling Board has a "plan B" which would allow for the possibility of different legislation that wouldn't open a flood of wet/dry votes, but would still work in Barling's favor.

"If they are not willing to back the proposal, then how about we amend the existing statute to allow cities that are part of a split district county (like Sebastian County) and are abut and contiguous to the wet part (of the county) to vote. A town like Greenwood would still not be able to vote because they are not abut to the part that is wet, but that would fit a town like Barling which is contiguous and abuts the Fort Smith district of Sebastian County."

Ketcham said while Barling can try to lobby state representatives and state senators on its own, the town's elected officials realize that there is strength in numbers.

"When the legislature is in session, (the Municipal League is) lobbying on all bills dealing with municipal government. It would help a lot if the Municipal League were throwing its weight around on this measure instead of being neutral or opposing the measure."

The annual convention of the Arkansas Municipal League convenes June 18.

Despite declining overall revenues, Windstream Corp. saw its bottom line improve as cost savings and strategic growth areas boosted its fourth quarter and full year profits.

Little Rock-based Windstream Corp. posted 2013 fourth quarter earnings of $118.4 million, a huge improvement from $10.1 million one year ago. Revenues for the quarter ended Dec. 31, 2013 were $1.49 billion, down three percent from $1.534 billion in 2012′s fourth quarter.

For the full year, Windstream reported net income of $241 million on revenue of $5.988 billion compared to a $168 million profit on revenue and sales of $6.139 billion one year ago.

“2013 was a solid year for Windstream. Our business team finished the year strong, generating sequential revenue growth again, and our consumer team continued to grow broadband revenue and deliver steady results, all of which better position us to achieve our goals and deliver value to shareholders,” said Jeff Gardner, president and CEO.

Windstream announced last week that it would slice 400 jobs from its nationwide workforce in an effort to remain lean and to position the communications firm for future growth, particularly in its broadband and business services which showed steady growth.

Traditional landline revenues – under heavy pressure from the wireless industry – continued to slump. Gardner said Windstream’s efforts are to keep the legacy business in the black, but to capitalize on business services and broadband growth.

“We are executing a growth-oriented strategy while also managing our legacy business for profitability. This combination is gradually stabilizing top-line trends and generating substantial cash flow. It is our continued belief that our capital allocation strategy strikes the right balance among investing in the growth drivers of the business, paying an attractive dividend to our shareholders and reducing debt over time,” Gardner said.

Financial notes included:
• Total business and consumer broadband revenues now represent 73% of the company’s total revenues.

• The company deployed fiber to approximately 2,000 wireless towers, opened three data centers and expanded and enhanced its broadband network throughout the year.

• During the year, Windstream reduced its debt by more than $200 million.

• The company also refinanced almost $4 billion in debt in 2013, which extended debt maturities and lowered cash interest expense.

• Paying $594 million in dividends to shareholders.

Windstream shares (NASDAQ: WIN) closed trading on Wednesday (Feb. 26) at $7.93. The company’s stock has traded between a low of $7.18 and a high of $9.17 in the past year.

One candidate seeking re-election to the Arkansas House of Representatives is trying a relatively new way to reach out to voters in the lead up to November — a mobile app available through the Google and Amazon app stores.

Rep. David Meeks, R-Conway, said apps, which have been used in presidential campaigns and some other large out of state races in recent years, were just another way to reach out to voters.

"An app is something that's been around, but for whatever reason, it's not really been used."

He said the use of an app comes down to "convenience."

“Everything is just right there. They don't have to go…basically it's just ease of use. They won't have to use two different apps – not a Twitter app and Facebook. It's just a single button. It's about simplicity more than anything else,” Meeks explained about his app.

The app features sections similar to a campaign website — issues, legislative actions, photos, videos, contact information and social media links.

Skot Covert, director of digital media at Impact Management Group, said the use of apps is a trend that's been on the uptick for the last four to eight years, since the advent of the smart phone. He said more campaigns, especially on the local level versus the national or statewide level, are starting to make use of app technology due to drops in price for development.

"You see a lot of campaigns that are now able to get their foot in the door with an app because the prices have gone down so much," he said. "They can purchase an app (for a good price). Back when smart phones were coming on the market, the costs to develop an app were significant. It's now cost effective to do it. You're seeing a lot of people like (David) Meeks taking those tools and using them in their campaigns."

Meeks said he is trying to reach voters in his district, which includes the city of Conway and rural parts of Faulkner and Perry Counties, using the technology that is right at their finger tips.

"Conway is technology oriented (with several colleges and technology companies). So I think it's a good idea. It's just another tool to be able to reach out to voters, even out in rural areas, where there's good cell phone coverage. And a good portion of my (constituents) have smart phones. Even if they don't, there is a way to access the app by just going to the internet."

Covert said while Meeks and other candidates may try to use app technology to reach new voters, many candidates who have used apps in past campaigns have found the technology to be a good way to engage volunteers through push alerts and engagement with the app.

"I don't know if it reaches new voters, but if you have a volunteer base of 50 people that are committed to seeing you elected or re-elected, you are able to arm them with talking points you want them discussing within your community. Something as simple as push notifications can have a great affect on your get out the vote operations. You want to make sure on election day, they don't forget to vote,” Covert said.

He said the use of apps in addition to social media, which he admits can at times feel like an "echo chamber" of politicos and journalists, can really make a difference

"We do live in this echo chamber, but with tools like this it allows you to equip your die hard supporters with the tools they need to effectively communicate your campaign's message."

As for the future use of the app, Meeks said he'll experiment with it and see what comes of it. So far, he's had 19 individuals download the app. And while it is only available in the Google and Amazon app stores, he's got his eyes set on Apple. Meeks said he is just looking to see how the app works for him during the 2014 election.

"I'm fine being the guinea pig and trying it out. I talked to other candidates and they thought it was intriguing. Hopefully it catches on as another tool to keep up with constituents and voters."

Arkansas’ residential real estate sector ended 2013 on a good note and the miserable winter weather of January was not enough to slow the pace of home sales in the state’s four largest markets.

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.

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.

The report, which counts the number of sales closed in January, is sponsored by Fort Smith-based Weather Barr.

JANUARY NUMBERS
January home sales totaled 1,204, up 6.55% in the four markets. Although the combined home sales activity was up in all four markets during January, the combined average price was down. The average price per home in the four markets was $144,599, down 5.58% compared to January 2013, and down 8.03% compared to January 2012.

There were 577 homes sold in central Arkansas, up 3.96% compared to January 2013, and up 30.84% compared to January 2012.

January home sales totaled 393 in Northwest Arkansas, up just 0.26% compared to January 2013, and up 15.25% compared to January 2012.

Jonesboro area home sales totaled 122, up 17.31% compared to January 2013 and up 48.78% compared to January 2012.

In the Fort Smith area, home sales totaled 112, up 41.77% compared to January 2013, and up 43.59% compared to January 2012.

The value of the sales during January were down 3.68% in central Arkansas, up 0.47% in Northwest Arkansas, down 0.97% in the Jonesboro area, and up 44.29% in the Fort Smith region.

THE REGIONAL PICTURE: 2013
Central Arkansas — Home sales
January 2014: 577
January 2013: 555
January 2012: 441

Fort Smith area — Home sales
January 2014: 112
January 2013: 79
January 2012: 78

Jonesboro area — Home sales
January 2014: 122
January 2013: 104
January 2012: 82

Northwest Arkansas — Home sales
January 2014: 393
January 2013: 392
January 2012: 341

The top five counties in terms of January 2014 home sales:
Pulaski — 259, up compared to 238 in 2013
Benton — 253, up compared to 232 in 2013
Washington — 140, down compared to 160 in 2013
Saline — 105, up compared to 88 in 2013
Craighead — 98, up compared to 81 in 2013

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

SALES, PRICES SHIFT
Perhaps one of the more perplexing things about the January report is that sales were up 6.55% compared to January 2013, but average sales prices were down by 5.58% – a drop of slightly more than $10,500 from the same time last year. More intriguing still is the fact that sellers didn't generally slash their asking prices for homes to attract buyers.

Pulaski County, for example, is typical in that regard. Sellers averaged 95.91% of their list prices for homes, a number that is slightly better than 95.88% a year ago. The size of the homes sold didn't decrease dramatically either, but the sales prices did. The average price per square foot of homes sold in Pulaski County was $74.38, significantly lower than $81.25 a year ago.

The City Wire Economist Jeff Collins said one can't read too much into January's numbers because it is just one month and factors such as cold winters keeping people from shopping for homes can skew the data a bit. He said it's safer to get the data from the first quarter of the year in place before looking for trends.

Still, he said one of the things driving the market could be that incomes haven't increased substantially, unemployment numbers have remained steady, and some people may be more cautious about taking on debt than they were a few years ago before the recession took hold. Those factors, he said, could add up to a situation where there is downward pressure on home prices – people are only willing to pay so much and sellers are simply adjusting to the market when pricing their homes.

The end result is no surprise, he said, which is that lower prices mean more homes are sold.

RENTAL DEMAND IMPACT
Jackie Twillie of Twillie Realty in Little Rock said it is difficult to pin down what exactly was driving markets in January. She said the numbers are coming up and people are still able to get loans, so that is good news and reflects well on the overall economy.

One phenomenon she's seen is that the cost of new homes dropped in 2013 a bit as builders rushed to meet the demand for mid-priced homes. At the same time, investors looking for deals on foreclosures snapped up a lot of homes and then turned those into rental properties. Twillie said the demand for rental homes is rising and that has prompted investors to start pulling foreclosed homes off the market to meet that demand.

The increased number of investors picking up homes for a bargain may have had a small impact on prices, she said. The same may be true of tight credit standards and slightly rising interest rates – factors that directly influence how much financing buyers can get when applying for mortgages.

Amber Gill of Exit Realty in Paragould said prices in the Jonesboro area may have been impacted by the popularity of the federal Rural Development program. Under that program, people are typically buying homes with no money down and, as such, sellers are holding stronger to purchase prices while still trying to list their homes at prices that will attract buyers.

She said there was a fear that the federal Rural Development loans would dry up in her area this year as the definitions were supposed to change so that cities with populations of more than 25,000 in the 2010 Census were to be removed from eligibility. Paragould was one of those cities that would have lost that eligibility, and Gill said the availability of Rural Development loans have helped attract buyers to that city.

At the end of January, however, Congress passed a measure that will keep all cities eligible for Rural Development loans in that program until Oct. 1. On that date, the population limits for eligibility will be raised from 25,000 to 35,000, meaning that areas where that mortgage program is offered will likely not see it vanish until at least 2020 when Rural Development definitions are to be considered again.

Hundreds of candidates for state office have made the journey to the to the state capitol in Little Rock to file for their chosen offices this week.

One race receiving far more attention than politicos originally expected is the race for lieutenant governor. It is receiving increased scrutiny following the resignation of Lt. Gov. Mark Darr, R-Ark., following an ethics commission finding of misspending of more than $40,000 in campaign and office funds.

The race has been shaken up in recent weeks with the entrance of U.S. Rep. Tim Griffin, R-Little Rock, causing Rep. Charlie Collins, R-Fayetteville, to abandon his bid for the office and instead seek a third term in the state house. Others seeking the Republican nomination for the office are Reps. Andy Mayberry of Hensley, and Debra Hobbs of Rogers.

On the Democratic side, former Highway Commissioner John Burkhalter filed his candidacy papers Thursday (Feb. 27) for the office and has said Griffin's move into the race has not caused him to second guess his candidacy.

"This is about my opportunity to give back to my state. It has nothing to do with anyone else who wants to run in this race," he said.

Burkhalter, who announced his candidacy last year, said he wants to use the office as a way to advocate for bringing businesses and jobs to Arkansas, drawing on his own past to get the job done and advocate for small business owners like himself.

"I'm a guy who came from nowhere ... came to Little Rock, worked for someone else for close to 10 years ... never dreamed I would get the chance to have a business, to start a business," he said. "I went to the bankers in central Arkansas. ... Nobody would loan me money. I didn't come from a family of political influence or wealth."

Burkhalter, the only Democrat in the race, said he went to extreme measures to secure funding to start his own company, refinancing his home and using credit cards to become a successful business owner and have "the opportunity to live the American dream." He said running for lieutenant governor gives him the opportunity to now give back to Arkansas and pay "my debt to society."

Even though he has never before run for office, Burkhalter said he is hopeful he can run and win in November, this in spite of poll numbers showing Griffin a full 15% lead should the two go head to head in the general election, saying he'd "leave polling to the political pundits."

Burkhalter also dismissed a call by Mayberry to make the next term of whichever lieutenant governor is elected the last, eliminating the office outright. Mayberry has made the pitch to make him the state's "next, and last, lieutenant governor."

"People should have a chance to vote (on a person who may one day become governor)," Burkhalter said. "It should be someone elected by the state of Arkansas, not a district or a county."

Burkhalter also addressed the Private Option drama that has unfolded in the fiscal session during the last few weeks, saying it was time to pass the legislation he supports. The Private Option was passed in the 2013 legislation session and uses increased Medicaid funding through the new federal health care law to purchase private health insurance for low income residents.

"I'm for the Private Option. It was a bipartisan process in the last session. It passed by a super majority. It's hard to get that many people to agree on anything," he said. "There are over 100,000 people signed up on the exchange. I'm sure some of them have never had health insurance before."

He said should funding for the Private Option fail to pass the House, it would leave "a huge hole in the budget (that) the governor will have to deal with."

Following is a list of candidates for local federal offices, Arkansas Constitutional offices, as well as local state house and state senate races as provided by Talk Business blogger Jason Tolbert (as of Thursday, Feb. 27):
CONGRESSIONAL RACES
U.S. Senate:
• U.S. Rep. Tom Cotton, R
• U.S. Sen. Mark Pryor, D
• Mark Swaney, Green Party
• Nathan LaFrance, Libertarian

Third Congressional District:
• U.S. Rep. Steve Womack, R
• Grant Brand, Libertarian

Fourth Congressional District:
• Rep. Bruce Westerman, R
• Tommy Moll, R
• James Lee Witt, D
• Ken Hamilton, Libertarian

ARKANSAS CONSTITUTIONAL OFFICES
Governor:
• Curtis Coleman, R
• Former U.S. Rep. Asa Hutchinson, R
• Former U.S. Rep. Mike Ross, D
• Josh Drake, Green
• Frank Gilbert, Libertarian

Lieutenant Governor:
• U.S. Rep. Tim Griffin, R
• Rep. Andy Mayberry, R
• Rep. Debra Hobbs, R
• John Burkhalter, D
• Chris Olson, Libertarian

Secretary of State:
• Secretary of State Mark Martin, R
• Susan Inman, D
• Jacob Holloway, Libertarian

Attorney General:
• David Sterling, R
• Leslie Rutledge
• Rep. Nate Steel, D

Auditor of State:
• Ken Yang, R
• Rep. Andrea Lea, R
• Regina Hampton, D

State Treasurer:
• Rep. Duncan Baird, R
• Saline County Clerk Dennis Milligan, R
• Hot Springs City Director Karen Garcia, D

Land Commissioner:
• John Thurston, R

• Elvis Presley, Libertarian

ARKANSAS SENATE
Senate District 3:
• Sen. Cecille Beldsoe, R

Senate District 4:
• Sen. Uvalde Lindsey, D

Senate District 5:
• Sen. Bryan King, R

Senate District 6:
• Sen. Gary Stubblefield, R

Senate District 8:
• Sen. Jake Files, R

Senate District 9:
• Sen. Bruce Holland, R
• Rep. Terry Rice, R

ARKANSAS HOUSE OF REPRESENTATIVES
House District 21:
• Marcus E. Richmond, R

House District 74:
• Rep. Jon Eubanks, R

House District 75:
• Rep. Charlotte Douglas, R

House District 76:
• Matt Pitsch, R
• Bobby Altes, R

House District 77:
• Justin Boyd, R

House District 78:
• Rep. George McGill, D

House District 79:
• Rep. Gary Deffenbaugh, R

House District 80:
• Rep. Charlene Fite, R

House District 81:
• Rep. Justin Harris, R

House District 82:
• Rep. Bill Gossage, R

House District 84:
• Rep. Charlie Collins, R
• Justice of the Peace Candy Clark, D

House District 85:
• Rep. David Whitaker, D

House District 86:
• Rep. Greg Leding, D

House District 87:
• Robin Lundstrum, R
• Lucas Roebuck, R

House District 88:
• Rep. Randy Alexander, R
• Former Justice of the Peace Lance Eads, R

House District 89:
• Rep. Micah Neal, R

House District 90:
• Paul Caldwell, R
• Jana Della Rosa, R

House District 91:
• Rep. Dan Douglas, R

House District 92:
• Kim Hendren, R

House District 93:
• Rep. Jim Dotson, R
• Alderman Bill Burckart, R
• Alderman Leah Williams, D

House District 94:
• Marge Wolf, R
• Rebecca Petty, R
• Grimsley Graham, D

House District 95:
• Rep. Sue Scott, R
• Dane Zimmerman, R

House District 96:
• Grant Hodges

House District 97:
• Rep. Bob Ballinger, R

The Sebastian County Election Commission voted Thursday (Feb. 27) to consolidate several polling sites throughout the county. The consolidation of sites will impact 7,172 registered voters from Fort Smith, Barling and New Providence precincts.

According to Election Commission Chairman Lee Webb the moves were necessary to save the taxpayers money.

"We're going to save enough (money) to do our off-site early voting site, which is somewhere around the $13,000 range," Webb said, adding the the figure was for both the 2014 primary and general elections.

Many of the precincts to be consolidated were within close proximity of each other, such as WestArk Church of Christ and Grand Avenue Baptist Church, with Grand Avenue absorbing WestArk's 1,241 voters. Due to the close proximities, Webb said most affected voters should not see much more time added to their distance to vote.

One location, Haven Heights Baptist Church, was consolidated with the Southside Senior Center as a matter of saving money and following the law.

"The most contentious one was the Haven Heights, and we had to fix that issue because by statute, we only get one polling site per precinct and we've probably been in (violation of) those statutes and just had never caught it. So basically, it would have got corrected if we didn't vote on anything else. Either it or the senior center ... would have been closed."

County Clerk Sharon Brooks said voters in the affected precincts will be informed of the changes before the May 20 primary election.

"As soon as they (the Election Commission) get the information to us on what they closed, who they're moving — once that information is given to us, then we will send the changes out," she said.

With the election only eight weeks away, Brooks said the Commission will have to move quickly to officially notify her office of the changes.

"You can't make any changes 30 days prior to any elections," she added.

The Commission also approved the opening of an off-site early polling location to be located at the Dallas Street Library in Fort Smith. According to Webb, the site will cost the Commission $12,967 each year to operate.

The site is in addition to early voting that Brooks said will continue at the Fort Smith and Greenwood courthouses. Webb said adding the early voting site will better serve residents in eastern Fort Smith.

"The benefit of off-site early voting at this location (is) it provides an alternative to early voting in the highest turnout area of our city," he said. "East Fort Smith, historically, has been the highest turnout and hopefully, the goal is to improve convenience to the voter and improve accessibility to the voter. It saves them either a long trip to Greenwood or downtown (Fort Smith)."

Brooks said the hours for early voting are set by the Arkansas Secretary of State's office and will be Monday through Friday from 8 a.m. to 6 p.m. and Saturday from 10 a.m. to 4 p.m. in the two weeks prior to the election. There has been no date set for when the third early polling site will first be used, though Webb said it would be during one of the elections to be held in 2014.

In other business, the Commission received an Attorney General's opinion which states absentee ballots much have a submitted copy of an approved photo identification card in order to be counted in an election.

Webb said Sen. Jake Files, R-Fort Smith, had requested the opinion after there was confusion on new state laws and after the Secretary of State's office had directed election commissions across the state to treat absentee ballots without a submitted copy of a photo ID as provisional ballots, although the law did not direct such action.

The Sebastian Pulaski County Election Commissions had sought guidance on the law through requests by their local representatives in the General Assembly.

With the newly issued opinion, the Commission moved to not count absentee ballots that do not include the required copy of a photo ID card.