A union vote at an OK Foods processing facility in Heavener, Okla., failed by a narrow margin Thursday (May 1), with workers voting 26-29 on a question of whether to unionize the facility.

With the vote failing, officials with Fort Smith-based OK Foods hailed it as a victory.

"OK Foods, Inc. is thrilled to announce that the maintenance and refrigeration employees at our Heavener, Oklahoma processing facility have decided against the need to be represented by the United Food and Commercial Workers Union in a National Labor Relations Board (NLRB) conducted election," the company said in a press release "The company is pleased by the outcome of the vote, and does not believe its employees need to pay a union a lot of money nor risk the possibility of strikes or other union complications to have a good job at OK Foods."

But Anthony Elmo of the United Food and Commercial Workers Union Local 1000 said the vote was not conducted according to the National Labor Relations Act, accusing OK Foods leadership of tampering with the election, which was conducted by the National Labor Relations Board.

"We feel like they subverted the vote as much as possible," he said, adding that the union is "preparing charges and objections to the election."

Elmo made as of yet unsubstantiated claims that OK Foods CEO Trent Goins had threatened workers with firing if they were to ever go on strike and had also threatened to lock employees out of the building if a strike were to ever occur.

He also said the company did "little silly things" that were meant to coerce employees into thinking they did not need union representation. Among the claims made by Elmo were actions as simple as painting the break room.

Elmo also claimed that Goins had met with employees one by one up to an hour before the vote Thursday in an attempt to sway their votes, though the claim and others have not been substantiated and a call to OK Foods for comment on this story had not been returned as of publication.

"The company is not allowed to do that within 24 hours of the vote," Elmo said.

In a prepared statement, Goins said he believed no one at the facility would regret the failed vote for a union.

“I am looking forward to continue working with our employees to make OK Foods the best possible place for everyone; I also encourage all employees to come together and work as a team. We sincerely believe no employee will ever regret the decision to defeat the union and wish to thank every team member for their support.”

Elmo said the union's objection to the vote would be filed either Friday (May 2) at close of business or Monday (May 5), adding that it was unknown when a decision on a possible re-vote could be handed down by the NLRB.

"The NLRB always takes a couple of weeks, at the least. But we're going to help employees speak with them directly, relay their testimony and tell the truth about what influenced their vote."

Arkansas revenue officials said April tax collections were in line with expectations leading to year-to-date figures slightly rising 10 months into the current fiscal year.

The April revenue report provided by the Arkansas Department of Finance and Administration showed net available general revenues totaling $570.2 million, down 11.3% from a year ago. Timing issues that inflated individual income tax collections a year ago declined in 2014 causing the big drop-off.

“Results in April, the largest collection month of the year, reflect adequate forecast provision for the anticipated decline from Individual Income tax collections in the prior year,” said John Shelnutt, head of DFA’s Economic Analysis and Tax Research Division. “Income tax shift from taxpayer strategy in the prior year added to FY 2013 results as a one-time boost and presented a challenge to current fiscal year prediction. The outcome of this one-time shift is reflected in the latest April results as a $101.7 million decline in Individual Income tax revenue compared to year ago results. The 17.9 percent decline was mostly anticipated and further offset by lower-than-expected Individual Income tax refunds.”

Corporate Income tax collections were $20.7 million above forecast for the month. Sales and Use tax collections were above forecast by $2.3 million or 1.3% and also above year ago levels by 4.9%.

“Short-term factors in collections processing may have contributed some of the gain above forecast for the month,” Shelnutt said.

Year-to-date Net Available General Revenues cleared $4.16 billion, 0.5% above last year’s levels and $77.6 million or 1.9% above forecast.

Other YTD totals included:
• Individual income taxes – 1.4% below last year; 0.5% above forecast;
• Corporate income taxes – 9% above last year; 10.2% above forecast; and
• Sales and use taxes – 3.2% above last year; 0.8% below forecast.

The 2014 Business Expo, hosted by the Fort Smith Regional Chamber of Commerce, emphasized growing businesses in a global economy. "Shop Local. Sell Global." was the message chamber members heard from numerous speakers beginning at breakfast and continuing at several breakout sessions held throughout Friday (May 2) at the Fort Smith Convention Center.

According to Chamber President and CEO TIm Allen, the idea for this year's theme came from a conversation with First National Bank of Fort Smith CEO Sam Sicard.

"It started out with how do we get people to buy local (during the Christmas season)," Allen said, adding that he and Sicard were looking for a way to expand beyond encouraging area residents to shop locally.

"The next step when Sam and I were talking about it, I (said), 'Our shops are not going to survive in the non-holiday season. They have to survive in the rest of the year. They've got to sell globally.' And Sam was like, 'So what you're saying is we need to shop local, sell global.' And I said, ‘That's it.’"

Speaking to the chamber members in attendance Friday, Sicard said for commerce to strengthen in the Fort Smith region, it would require members of the business community to start thinking outside the box. He said it cannot all fall on the Chamber's leadership to recruit business, either.

"There are other ways to increase commerce that's in the control of every one of us in the community," he said. "And simply increasing commerce by increasing the dollars that are coming into this community and limiting dollars going out of this community. The way that we do that, simply, is by exporting goods and services outside this community and bringing more dollars and more jobs into this community."

And while local consumers can do that by shopping locally, business owners have to start thinking globally, according to both Sicard and Allen, who brought in Quinn Frazier, business director at UPS, who discussed the future of eCommerce.

Frazier discussed how as a child growing up in Utah, his world and that of his friends and family did not stretch further than the streets of his neighborhood and town. But as the world as grown to become so interconnected through technology, businesses like those in his hometown cannot be content to just reach locals.

He pointed to the emergence of once sleepy towns as international commercial powerhouses that have a hunger for material goods and businesses, including those in the Fort Smith region, should be prepared to serve a growing middle class in a country on the other side of the globe.

The perfect example of this, he said, was Shenzhen, China, which data shows has grown from 332,900 people in 1980 to 10.467 million in 2011. The change represents a 3,044.31% increase in population in only 31 years.

According to Frazier, the explosive growth in emerging markets are not necessarily a bad thing, but represent opportunities for business owners willing to look beyond the boundaries of their own cities, states or countries. The opportunities to serve the growing middle class in other parts of the world is there if American businesses would just seize the opportunity, though he said only 350,000 businesses in the U.S. export and of those, 59% export to only one other country.

Even though Frazier was pointing out how local businesses could expand their reach and increase revenues and profits by looking outside the United States, he told The City Wire that businesses looking to reach locals must innovate just as much as those trying to reach an international market through the internet.

He cited a statistic that said by the year 2017, more than $13 billion in sales will be conducted on smart phones, and he said as businesses look to the future, they must keep mobile in mind, as well as the age of potential customers.

"I think, from a retail perspective, we've got to figure out how to almost duplicate the web shopping experience in a brick and mortar store," he said. "People want to come in. Fifty-four percent want to touch a screen when they come into a brick and mortar store. That doesn't make sense to me, anyway, but if that's the way that the trend is going, we need to figure out how to duplicate that."

The 2014 Business Expo was scheduled to run until 3 p.m. with a variety of educational seminars ranging from "The Pulse of the Online Shopper" to "eCommerce Through Three Generations: Boomer, X and Millennial."

The expo also featured vendor booths set up where businesses could showcase their services to Chamber members.

Former President and Arkansas Gov. Bill Clinton spoke more like a proud father than a politician as he rallied a crowd of rowdy Democrats in Little Rock on Saturday (May 3) at a fundraiser for Democratic gubernatorial candidate Mike Ross.

The event, held at the Little Rock Marriott's Grand Ballroom, featured Clinton, Ross and former Transportation Secretary Rodney Slater, who spoke about how he felt that Ross would follow in the footsteps of many Democratic governors before him, including Clinton.

"In the same vein as former governors (Sid) McMath and (Dale) Bumpers and (Bill) Clinton and (Jim Guy) Tucker and our current Arkansas Gov. Mike Beebe, from strength to strength, he campaigns as he has served — to promote programs and initiatives, to create an environment of opportunity for all, to demand responsibility and a contribution from all and to create a sense of community, a sense of place, a sense of belonging among all Arkansans,” Slater said.

Ross, who spoke briefly before introducing Clinton, said the attributes highlighted by Slater were engrained in him by his family in his hometown of Prescott and around the state.

"My family collectively taught me the values growing up of faith, family, hard work, personal responsibility," he said. "And I think those values served me well for the 10 years I served with people like Mike Beebe in the Arkansas State Senate, and I think they served me well for the 12 years that I served in the United States Congress and I just want you to know that those same values will serve as my moral compass as I do my best to hopefully lead this state for the next eight years."

Ross, who served as a driver during one of Clinton's many races for governor in the 1980s, said the lessons learned on the road all those decades ago taught him values that he will bring to the governor's office.

"When I was 20-years-old, I had the privilege to drive this man around this state. We had a one-car motorcade. It was him, me and a Chevy Citation. We didn't have cell phones. I had to always make sure I had change in my pocket so we could use a pay phone to check in the office," he said. "Let me tell you what I learned in that year and a half from this man right here. I learned that politics and public service can still be good, it can be noble. You can get involved, you can run for the right reasons, and you can really make a difference in people's lives. And he has been a friend and a mentor and someone to help guide me throughout my time in the Congress. I just think the world of him and I love him. I'm honored that he's here."

Clinton, who began his remarks by sending condolences to the victims of the state's recent tornadoes that killed 15 and destroyed or damaged hundreds of homes in Mayflower, Vilonia and other communities across the state.

When he shifted to recalling the 20-year-old Ross, the former President said he just had one goal during the year and a half that Ross drove him across the state.

"When Mike Ross was driving me around, I thought, 'You know, I'm going to see if I can't wear this boy out.' I still tried with all the young people that worked with me and he never wore out. And all these years I've known him and watched him and I know a lot about this race and I know a lot about the history of Arkansas politics and government."

He also explained how even before the stock market crash of 2008 and the resulting Great Recession, the economy was already lagging, saying that in his view the state and several parts of the nation were experience "trickle down economics," segueing into a discussion of the tax plans proposed by Ross and Republican gubernatorial frontrunner Asa Hutchinson, who faces a primary with North Little Rock businessman Curtis Coleman on May 20, explaining that Ross's proposed phased-in tax cuts would be the best plan for Arkansans.
www.thecitywire.com/node/31586

"In my opinion, his tax plan is better than his opponent's, both because it's fairer and because it's better economics over the long run," he said. "When people are working and they can't put food on the table and they can't buy their kids clothes for school and they're worried about paying their bills every month, it effects how they do at work. It effects everything about their environment."

Clinton also praised Ross' plan to implement universal pre-K, explaining that the work his wife  — former Secretary of State Hillary Clinton, herself a potential presidential contender in 2016 — was doing with the Bill and Melinda Gates Foundation on expanding educational opportunities has opened his eyes.

"(A child) from a low income family that doesn't get a lot of education and doesn't go to school until the normal time without pre-school, that child — listen to this — would have heard 30 million fewer words spoken."

He said much of the basis for future learning throughout life begins during school and said there was no better way to close the gap between the less educated in the state "than universal pre-K."

The oft-controversial topic of the Private Option — the state's use of federal Medicaid dollars to purchase private health insurance for low-income Arkansans — was also discussed, with Clinton praising the program and saying that Ross' tax cut plan was made to help those who needed the assistance provided by the Private Option.

Ross's history of sometimes crossing the aisle and voting with the Republicans during his time in Congress was praised by Clinton, who said bi-partisanship was something sorely needed in the next governor and referring to the records of Hutchinson and Ross.

"You don't have to take the candidate's words for it," he said, referring to claims by both that they would be able to work effectively with the General Assembly, regardless of which party has the majority following the November election. "You actually have a long record for both of them and only one of them has consistently, even in the heated partisanship of Washington, D.C., proved that he would get up every single day and ry to find a way to get the show on the road by getting people together across the party lines, and that's Mike Ross."

Clinton concluded by telling the crowd that in his mind, the choice for the next governor of Arkansas was "not rocket science," adding that he would do his part to make Ross the next occupant of the Governor's Mansion.

"I am immensely proud of the man Mike Ross has become. I am proud of the life he's lived, the public service he's rendered. But the most important thing is he is by light years our best choice for the governor of Arkansas."

The Dennis Smiley loan saga puts two of the state’s largest banks on opposite sides as Simmons First National added another layer to the growing legal web with a legal complaint filed in Benton County Circuit Court on Friday (May 2).  

Pine Bluff-based Simmons First, through its lawyers at Kutak Rock, filed a 44-page complaint against former Arvest banker Henry Dennis Smiley doing business as Design for the Home LLC. Centennial Bank also was named as a defendant in the case as a lender who might also lay claim to the collateral encumbered to Simmons.

Unlike the majority of previous loan default complaints filed against Smiley, the collateral used for three loans with Simmons First was not linked to the Smiley’s Arvest stock holdings. Simmons loaned Smiley $62,116 in October 2009 to be used as working capital in the Design for the Home business. The loan was secured by the inventory and receivables of that business, according to count documents.

In March 2010, Smiley received a second loan from Simmons for $38,125, which also was tagged for working capital in the design business and backed by the businesses inventory.

In each of these loans Simmons required payment in regular quarterly installments, but the second loan was extended in April 2012 when the final balance was due. In December 2012, Simmons loaned Smiley another $46,040 with a due date of June 2016. In loan number three Smiley pledged his interest in three residential lots in the Mountain View Addition in Fayetteville. The bank filed a UCC Financing Statement encumbering the tangible real estate commonly known as 525 N. Assembly Drive, Fayetteville. 

A search of the county real estate records shows this property is owned by Debra Parker-Ladd, with a mailing address of 307 Appalachian Way, McKinney, Texas. Smiley transferred the property to Parker-Ladd on Aug. 3, 2013, for a sum of $1, according to the deed on file. County records show an estimated sale price in 2013 was $229,000

Simmons made no mention of Parker-Ladd, but noted in the lawsuit that Centennial Bank may also have claim to this same tangible collateral. Simmons claims the Centennial lien would be junior, or subordinate, to Simmons’ claim. The Simmons filing asked the court for a judgment totaling $67,879 with interest accruing. The bank also asked for court costs related to the legal proceedings.

This is Simmons’ second complaint filed against Smiley in recent weeks following a $84,816 complaint lodged against HDS Holdings, AKA Dennis Smiley Jr. and Henry Dennis Smiley Sr.

Smiley Sr. has noted in recent court filings that he did not sign any documents, nor was he aware of loans made in his name.

SMILEY’S ANSWER
Smiley Jr., through his lawyers at Ball & Mourton in Fayetteville, answered the Arvest interpleading on May 2 agreeing with most of the points raised in the initial Arvest filing. Smiley noted that he has not received any payment from his stock account earned while he was employed at Arvest. 

He asked the court to allow the funds on deposit be applied to his legal costs and any other relief the court deems just and proper.

The Arvest Interpleading listed the names of 20 Arkansas banks. To date, nine banks have staked claims totaling $1.69 million. Today’s Bank and First Security Bank filed answers to the Arvest interpleading but did not furnish details about what is owed.

Tyson Foods second fiscal quarter revenue hit $9.032 billion, a more than 7.7% increase over the same quarter in 2013, with net income of $213 million up more than 124%. The improved financial results came primarily from sales and margin gains in the chicken business along with higher beef and pork prices.

The quarterly per share earnings were 60 cents, just below the consensus of analysts’ estimate of 63 cents per share. Investors began selling off Tyson Foods shares at the market opening as analysts belief the recent run-up in stock price was a little premature. In the first hour and half of trading 2.5 million shares had traded hands and the share price was off 8% to $39.24 down $3.41.

Tyson management gave an optimistic outlook for the back half of 2014 and 2015 saying it will be as good or slightly better than the past six months. But that was not enough to keep investors pacified given the stock price has surged 72% this year.

For the first six months of the year, Springdale-based Tyson Foods has posted $467 million in net income, well ahead of the $268 million in the same period of the previous year. Total sales for the six-month period was $17.793 billion, up 6.23% compared to the same period in the previous year.

The second quarter marked the first time the company posted quarterly sales of more than $9 billion.

"We had a record second quarter, which is a testament to our great team and our balanced multi-protein, multi-channel, multi-national business model," Donnie Smith, Tyson Foods' president and CEO, said in the earnings statement released early Monday (May 5). "Our second quarter is usually our most challenging. We had a lot to overcome, including a harsher than normal winter, but I'm satisfied with the results. I'm still confident in my expectations for the year that we will achieve our goal of 6-8% sales growth in value-added products while generating at least $2.78 earnings per share.”

Smith estimates a $15 million ding from cold weather impact. He said there is always a weather impact but this year the severity began earlier and lasted longer, noting that institutional sales were down because of school closures but those were mitigated by higher retail sales as moms cooked more meals at home.

Tyson said the recent tornadoes in Arkansas and other areas of the south did not hit company facilities though a few grower houses were destroyed. Tyson has had more than 200 workers help with the clean up efforts in four states and cook 63,000 meals for relief workers and storm victims. Tyson Foods is matching its employee contributions to the storm clean up efforts up to $100,000.

POULTRY PLUS
Quarterly sales in the chicken segment were $2.842 billion, up almost 4% over the second quarter in the 2013 fiscal year. Operating income in the segment during the quarter was $234 million, much better than the $143 million in the 2013 quarter.

Smith expects industry chicken production to rise between 2% and 3% on heavier weights with no meaningful uptick in birds slaughtered until the back half of 2015. The industry is somewhat restricted by older breeding flocks and processing capacity constraints.

Tyson said its domestic chicken business is strong, but Smith reminded analysts that it doesn’t have to grow the birds it processes in order to to expand because of its buy versus grow capabilities. He did say Tyson is tapped out on further processing capacity and the company plans to expand two lines in order to meet the demand it’s seeing in case-ready retail.

In the recent quarter, chicken prices reported by Tyson Foods were down 0.3%, from the prior year on the domestic side of the business. Tyson’s operating margin improved to 8.2% amid lower grain costs of $175 million in the quarter.

LEAN BEEF
Beef sales in the quarter totaled $3.825 billion, better than the $3.447 billion in the same quarter of 2013. Operating income in the segment was just $35 million, but that was a wide swing from the $26 million loss in the same quarter of 2013.

Smith said high live cattle prices kept Tyson on the sidelines through much of the second quarter, which allowed the company to better manage the margin spreads. The net operating margin for the quarter was 0.9%, well below the normalized range. Smith expects the back half of this year to mirror the first two quarters, which while positive is far from the company’s normal earnings potential in beef.

Steve Kay, publisher of Cattle Buyers Weekly, told The City Wire that high beef prices will likely keep consumer demand at bay through much of the summer grilling season.  Smith said beef prices are up about 4% at retail, but they are up 13% at the wholesale level and consumers have not yet felt the brunt of record beef prices.

PORK PED
The pork segment posted operating income of $107 million on total sales of $1.487 billion, compared to operating income of $72 million on sales on segment sales of $1.311 billion during the same period of 2013.

“We expect industry hog supplies to decrease around 4% to 5% in fiscal 2014 compared to fiscal 2013, partially offset by increased average live weights,” Smith said. 

Tyson will adjust its pork operational hours downward because of the negative impact the PED virus has had in hog supplies, according to Smith. He said pork prices are up at retail, but the cutout wholesale value has come down off of a record high which should allow for some promotional activity at the retail level by Memorial Day.

For fiscal 2014, Tyson expects its pork segment will be in its normalized margin range of 6% to 8%.

PREPARED FOODS GROWTH
Tyson’s prepared foods segment generated second quarter sales of $861 million, up 7.2% from the year-ago period. Operating income totaled $21 million, down fractionally the same period in 2013. The dip in operating income was attributed to higher raw material costs of $25 million, increased investments in the company’s lunchmeat business capacity and recent acquisitions.

Smith has said the prepared foods segment is a growth engine for the meat giant. The company continues to invest in this segment for longer term results. Much of the company’s capital expenditures this year— $650 million to $700 million — is earmarked for the prepared foods segment.

Tyson expects operational improvements and pricing to offset increased raw material costs in the coming months because Tyson uses a formula-based contract, but there is a slight lag time involved.

“As we continue to invest heavily in our growth platforms, we expect our prepared foods segment to be below its normalized range of 4.0% to 6.0% for fiscal 2014,” Smith noted in the release.

INTERNATIONAL STALLS
The only negative results were found in the company’s international segment, which saw poor market conditions in Brazil and weak demand in China along with costs incurred to prepare for future business. Tyson separated its international segment from the poultry business after recently re-aligning its top management teams.

"The International segment is another area where we think some short-term sacrifices are worth the long-term earnings potential. We've chosen to slow down our growth this year, primarily due to weak demand in China,” Smith said in the statement. “We are committed to our China operations, and we believe we now have the right pace for developing that business as we wait for demand to return. We think it will get sequentially better from here, and we like the long-term opportunity."

Smith said during the analysts call that the company had totally revamped the management in its Brazil operations from the president to field supervisor after several missed steps from the previous management team on the ground in Brazil.

“We have the right people in place there (Brazil) and expect this business to turn around in the back of this year,” Smith said.

In China, the avian influenza drag on chicken demand has lasted longer than expected, but Smith is optimistic that conditions will improve.

“Unless market conditions improve, we will incur losses for the remainder of the year; however the losses in the third and fourth quarters of fiscal 2014 should be lower than the losses sustained in the first two quarters of fiscal 2014,” Smith noted in the release.

BETTER OUTLOOK
The company expects the second half of the fiscal year to also generate good revenue, and execs are predicting $37 billion in total sales, a gain over the $34.374 billion in the previous fiscal year.

“We expect fiscal 2014 sales to approximate $37 billion as we continue to execute our strategy of accelerating growth in domestic value-added chicken sales, prepared food sales and international chicken production, as well as price increases associated with rising cattle and hog costs,” the company noted in the statement.

Flush with cash and a healthy balance sheet, Tyson continues to look for merger and acquisition opportunities through “bolt-on” and larger strategic plays, according to Dennis Leatherby, chief financial officer for Tyson Foods. He said the company will also continue to innovate new products that cater to consumer desires like the Tyson Daystarts breakfast item that has posted a record performance for a new product launch.

Tyson execs were asked to quantify how the company plans to grow earning per share by the 10% projected figure. Smith said the 10% earning per share growth year-over-year is attainable because he expects better performances out of China and Mexico, beef and pork segments to do the same or better, chicken profits and sales to grow and more synergies realized from some of the acquisitions made last year. Tyson expects fiscal 2014 earning of $2.78 per share.

Tyson shares continued to skid following Monday’s earnings call and the miss on net profits. Tyson Foods’ shares (NYSE: TSN) traded down nearly 9% at the noon hour Monday — $38.90, down $3.75. During the past 52 weeks the share price has ranged from a $44.24 high to a $23.39 low.

U.S. Sen. John Boozman is less than two weeks removed from the day that he will never forget after having emergency heart surgery to repair an aortic dissection. And while he may be at home resting as comfortably as one can following major heart surgery, the question of whether he will choose to seek another term when he comes up for re-election in two years is sure to be the topic of conversation among Arkansas politicos in coming months.

But for anyone expecting Boozman to bow out of a second term as Arkansas' junior senator, Dr. Janine Parry said don't bet on it.

Parry, the director of the Arkansas Poll and a professor of political science at the University of Arkansas, said even though now-former U.S. Sen. David Pryor, D-Ark., chose to not seek another term nearly six years after his April 1991 heart attack, she "wouldn't make too much of that."

"Certainly we've seen more examples of people continuing to run long past (the period) when their health was good," she said. Examples include two of the United States' longest serving senators — Strom Thurmond of South Carolina and Robert Byrd of West Virginia.

She said while Thurmond and Byrd may have continued their Senate service well beyond their healthy years, Boozman has age (he's only 63) and what appears to be otherwise good health in his favor as he looks at returning to the Senate for possibly many years to come.

And even though Boozman is at home in Rogers and on the mend, Parry said when he begins to resume his Senate duties, he will have an easier time than if he were still in the House due to the slower pace of Senate business.

"There actually is some scholarship on that," she said. "That the pace of the Senate is more conducive to living a health and balanced life. So whatever life, whatever health concerns you have or don't have, the Senate is considered in some ways far less demanding. The main factor there, sort of by design by the founders who were not necessarily concerned about people's health and well being, the Senate term of six years just gives people more breathing room than those people in the House."

She said the purpose was to give Senators "room to make unpopular but better-informed policy decisions," adding that the workload of a Senator could average about a 60 hour work week, while the workload for a House member could average up to 80 hours a week.

"It allows them to have a better, more balanced life more conducive to living. It's a more deliberate pace by design and that was mostly about policy making. But the consequence, arguably, has been that it has more positive outcomes for the Senators and their families, as well."

Also sure to assist Boozman's return to the Senate in coming months is his staff, which Parry said was well able to run things during the Senator's absence and would be able to assist him as he transitions back to a regular workload.

"What I do know is just like any large organization, the person at the top has a lot of responsibility," she said. "But members of the Senate have large, competent staffs that help them navigate this, again, just like any of us in most of our workplaces."

Dr. E.J. Chauvin, the Mercy Cardiac & Thoracic surgeon who performed Boozman's surgery, said April 25 that the Senator was expected to make a full recovery, and should be able to return to full duties with no restrictions at a future date, though he declined to name a specific time period.

Even with the glowing words from Boozman's doctor, it is not outside the realm of possibility that a potential 2016 challenger to Boozman could attempt to use this single medical ailment as a campaign narrative. But Parry said using that against a Senator like Boozman, who she said is "such a nice guy," would be a mistake.

"It's possible, but I'd like to think most people are above that," she said. "And secondary to that, let he who is without some kind of medical scare be the first to throw stones. It's the same way with any personalized challenge like that. You better be A) equally qualified and B) be ready to open up your entire medical history or romantic history. You don't even see it being used that often. Even with the U.S. Senate's most senior members in the 20th Century, most opponents came at it from that angle and most (of the incumbents) survived."

For anyone expecting more drama surrounding a proposed planned zoning district for the Fianna Hills Country Club, expect to be disappointed.

In an e-mail from Fort Smith City Administrator Ray Gosack to members of the city's Board of Directors, Gosack said the proposed PZD originally scheduled to be considered at Tuesday's (May 6) meeting was not something the owners of the country club wanted to see passed during the meeting.

"I spoke this afternoon with Jim Shields, co-owner of Fianna Hills Country Club, about his interest in the PZD application on tomorrow night’s board meeting agenda," Gosack wrote. "Mr. Shields said that he and his partner have no intention to undertake a project like that proposed in the PZD application. He said that he doesn’t believe a prospective buyer would ever have interest in the proposed project. Mr. Shields asked that the board not approve the PZD application, and to leave the zoning as it currently is."

When reached Monday for comment, Fianna Hills Country Club co-owner David Mille said he would not comment on the matter.

The application for the PZD was originally sought by developer Lance Beaty of Fort Smith-based FSM Redevelopment Partners. Beaty, who had successfully redeveloped the former Phoenix Village Mall into an office complex that now employs more than 1,200 people, had proposed purchasing the country club and investing $20 million to rebuild the country club with amenities such as guest suites and a medical concierge service.


His plans to redevelop the property hit a snag when residents of the Fianna Hills neighborhood began to not only express vocal opposition to the project, but also started a petition to limit possible uses under the PZD.

Lisa Clay, who lead petition efforts to amend the wording of the proposed PZD, said she and other residents had concerns about the types of uses allowed within the PZD. Concern also arose from the Fianna Hills Property Owners Association, with President Pat Ross claiming that Beaty had told him the plans for the $20 million country club redevelopment would not work and he instead would build an office complex at the site, a claim that Beaty denied to The City Wire.

The future of the club remains uncertain as the club's owners have changed their outlook for the club multiple times. Initially, Mille said he and Shields could not keep the club open with its current business model, which they said has been losing money for several years, even saying that closing the club was not "an idle threat."

The two men then held a meeting with members of the club in April where they laid out in clear terms the current financial situation at the club.


"But there will come a point if we cannot turn a profit, where we are going to have to close it," Mille said. Shields was clearer, telling members that the club only had one to three months of life left in it.

The men said there were two interested buyers following Beaty's pulling out of the project, one that is a private group and another that is led by a group of Fianna residents. Clay and her husband have also been trying to lead a group of residents to purchase the club, though at that meeting Shields confirmed that no formal approach or offer had been made by the Clay group.

With Mille declining to comment on the latest developments, the future of the club is anybody's guess.

It was just March 4 that Fort Smith resident David Harris was raising questions about prayer at public meetings in Arkansas’ second largest city and the inclusion of non-Christian groups during invocations at public meetings. Now just two months later, the United States Supreme Court has spoken and said prayer — even to a specific deity — at public meetings is perfectly legal.

In a split 5-4 decision Monday (May 5), the majority of Supreme Court justices ruled in favor of the town Greece, N.Y., which was fighting for its right to allow local clergy to open its meetings in prayer in the case Town of Greece, New York v. Galloway.

According to the Court, the town of 94,000 had previously held a simple period of silence for several years prior to 1999, when "newly elected town supervisor, John Auberger, decided to replicate the prayer practice he had found meaningful while serving in the county legislature."

Auberger would invite a local clergyman — chosen at random from a local directory — to deliver a prayer before the start of its regular business.

The method is similar to one Fort Smith Mayor Sandy Sanders outlined for The City Wire in March when he was questioned about Harris's concerns regarding the selection of religious leaders to lead the opening prayer at Fort Smith City Board meetings. Sanders’ office provided documentation showing that the city of Fort Smith had made attempts to include other faiths in the opening prayer ritual at city Board meetings. Among the non-Christian groups to be invited, the mayor's office had reached out to the Arkansas International Buddhist Temple, Wat Budda Samakitham, Masjid Al Salam and the United Hebrew Congregation.

The lawsuit against the city of Greece was brought by two men who alleged that the practice of Greece and numerous other cities – possibly Fort Smith – across the United State's violated the First Amendment's Establishment Clause by showing preferential treatment of Christians over other religious groups, an argument which was struck down by the Court's majority.

"Respondents argue, in effect, that legislative prayer may be addressed only to a generic God," Justice Anthony Kennedy wrote in the majority opinion. "The law and the Court could not draw this line for each specific prayer or seek to require ministers to set aside their nuanced and deeply personal beliefs for vague and artificial ones."

Kennedy also wrote that prayers held before legislative sessions, such as a city council or quorum court, generally "lend gravity to the occasion and reflect values long part of the Nation's heritage."

"Prayer that is solemn and respectful in tone, that invites lawmakers to reflect upon shared ideals and common ends before they embark on the fractious business of governing serves that legitimate function. If the course and practice over time shows that the invocations denigrate nonbelievers or religious minorities, threaten damnation, or preach conversion, many present may consider the prayer to fall short of the desire to elevate the purpose of the occasion and to unite lawmakers in their common effort. That circumstance would present a different case than the one presently before the Court."

In a dissenting opinion, Justice Stephen Breyer agreed with a previous Court of Appeals decision that faulted the city and pointed to the fact that many of the prayers delivered at the Greece, New York, meetings were delivered by a single Christian denomination.

"That significance would have been the same had all the prayers been Jewish, or Hindu, or Buddhist, or of any other denomination. The significance is that, in a context where religious minorities exist and where more could easily have been done to include their participation, the town chose to do nothing."

Reached for comment Monday, Sanders said he was pleased the Supreme Court ruled in favor of a practice that has been a regular part of Fort Smith Board meetings for years.

"For many years, the Fort Smith Board of Directors regular meetings have been opened with prayer and I am pleased the Supreme Court has now decided that this practice does not violate the U.S. Constitution. In Fort Smith, we have invited religious leaders of a variety of faiths to volunteer to bring the opening invocation. The decision to participate is left to those individuals."

The case has long been drawing the attention of Arkansas' Congressional delegation, with U.S. Sen. John Boozman, R-Ark., having filed an amicus brief to the Court last year as a part of this case along with other members of the Senate, including Republican Marco Rubio of Florida.

"In this religiously diverse Nation, the best means of ensuring that the government does not prefer any particular religious view in the context of legislative prayer is not to silence some such prayers while allowing others,"the Senators wrote."It is to allow those who pray to do so in accordance with the dictates of their consciences. …allowing those who offer legislative prayers to pray in accordance with their own consciences is the approach that best serves the value of religious liberty that underlies the First Amendment."

Boozman, who is recovering from heart surgery, was unavailable for comment, though Communications Director Sara Lasure said she was told he was pleased with the decision, which was "the outcome he hoped for." Other members of Arkansas’ Congressional delegation expressed their support of the court's ruling. Following are the un-edited statements of the delegation who responded to requests for comment:
• U.S. Sen. Mark Pryor, D-Ark.: “Prayer is an important part of my daily life and in the lives of countless Americans and I am thankful the Supreme Court has upheld this core American value.”

• U.S. Rep. Tom Cotton, R-Dardanelle: "I applaud the Court's decision to allow citizens to freely exercise their First Amendment rights, recognizing that prayer has long been a part of public meetings in this country."

• U.S. Rep. Steve Womack, R-Rogers: "I appreciate the Supreme Court reaffirming the longstanding tradition of Americans choosing whether or not they want to open a public meeting with prayer. Far too often, those who espouse liberty try to encroach upon their neighbors. Today, our highest court protected the rights of Americans to freely practice their religions."

New results from a Talk Business-Hendrix College Poll show that the private option is immensely unpopular among Republican voters, but its effect in primary election races is mixed.

The latest statewide poll of 1,516 likely GOP voters found that 54% oppose the plan, while 23% favor it. Roughly 24% are undecided on the program that takes federal Medicaid expansion dollars and uses it in private health insurance exchanges to subsidize low income workers’ health care coverage.

The last question posed to voters in the April 29, 2014 survey was:
Q: As you may know, the Arkansas General Assembly has passed a law allowing Arkansas to spend federal Medicaid dollars to provide private insurance to low-income Arkansans through health care exchanges. Do you favor or oppose this “private option” health care plan?

23% Favor
54% Oppose
24% Don’t Know

The private option was originally passed in the 2013 regular legislative session by the smallest of margins needed for supermajority of votes in both chambers of the Arkansas General Assembly. In the 2014 fiscal session, renewed funding for the private option once again passed by the narrowest of margins with only one vote to spare in the Arkansas House and no votes to spare in the Arkansas State Senate.

Other reforms to Medicaid were also passed in 2013 as part of a comprehensive package that overhauled aspects of the state’s low-income health care program.

PRIMARY WARFARE
In a number of Republican political primaries this spring, the private option has been a major issue of contention. Several high-profile State Senate races pit those who voted for the private option and its funding against opponents who pledge to halt the program in its tracks if elected.

For instance in Senate District 9, challenger Rep. Terry Rice, R-Waldron, has bashed private option supporter Sen. Bruce Holland, R-Greenwood, with the issue. Rice, who opposed the measure in the last two sessions, contends that the state can’t afford its share of the private option costs in three years when it starts picking up a percentage of the tab.

“The payday’s coming and I hate for people to be hurt,” Rice said at an April debate in Van Buren. “I asked for this to be put off and let’s see what other states do around us. We were the only southern state – no other state that touched us expanded Medicaid. It’s because the Supreme Court ruled we did not have to.”
www.thecitywire.com/node/32857

Holland has defended his votes, saying the private option was the only viable response the state had to cope with the dilemma of doing nothing, expanding Medicaid, or cobbling together a state solution with federal funds.

“It’s accepting federal money that the federal doesn’t have. Well, I get that argument. I really get that,” Holland told the debate audience in Van Buren. “But there’s money that’s gone from this state to D.C. that I think we should take advantage of and allow these people and these hospitals the support through this private option. Now there’s nothing perfect about it. It’s the crappiest lemonade you could make out of these lemons. That’s a fact. But doing nothing was not a good option.”

Rep. John Burris, R-Harrison, is running for an open Senate seat against two primary opponents — Scott Flippo and Mountain Home Mayor Dave Osmon. Burris has frequently explained his position that the private option was the only reasonable solution the state had. An architect of the plan, he says it is “misleading” to say the private option is Medicaid expansion.

“It reduces the number of people on Medicaid,” Burris wrote in a Family Council survey, which can be influential with Republican primary voters. “The program neither expands Medicaid or provides ‘health insurance through Medicaid.’”

For his role in the private option, Burris has faced a barrage of criticism from Flippo who has sent mailers and is running a campaign commercial attacking him on the subject. Flippo is adamantly opposed to the private option and the other candidate in the primary, Osmon, says he doesn’t like the law but would support continuation of the private option if it was the only choice to consider.

MIXING IT UP
Several Republican candidates running for statewide or federal office have seen the private option injected in their races. Polling data suggests an uneven application of the issue as an effective political weapon.

4th District Congressional candidate and House Majority Leader Bruce Westerman, R-Hot Springs, fares well with supporters and opponents of the private option. Crosstabs from the Talk Business-Hendrix College Poll show Westerman winning with those in favor of the private option and those opposed to it.

Westerman, an opponent of the private option, didn’t officially remove his name from legislation tied to the measure until later in the 2013 session, although his participation in the crafting of the eventual proposal ended early in the process. He filed his own bill to require a global waiver, which he argued would provide more state flexibility with federal funds.

His GOP primary challenger, Tommy Moll, is running a TV spot accusing Westerman of supporting Obamacare “twice” by being an early sponsor on the unmodified “shell” bill and for his “global waiver” bill.

Westerman and 19 of his legislative colleagues have responded that Moll is incorrect and they are circulating a letter stating that Westerman “led the opposition to Obamacare in Arkansas.”

“Anyone who claims that Bruce Westerman was anything but an ardent opponent of Obamacare is misleading the people of Arkansas,” the letter from the 19 lawmakers states.

Andrea Lea, a GOP candidate for State Auditor and supporter of the private option, has support from likely primary voters for and against the private option. Lea faces Ken Yang in the GOP primary.

Conversely, the data suggest a split among GOP voters for State Treasurer candidate Duncan Baird, who supported the private option. He fares better with those who support the private option (17% to 13%), while his primary opponent Dennis Milligan does better with those who oppose it (19% to 11%).

GROWING PAINS
GOP strategist Bill Vickery with Little Rock-based Capitol Advisors Group, who does not represent any of the candidates in the Republican primaries this May, says the maturity of the Grand Old Party now downplays the relevance of singular issues like the private option in Republican vs. Republican races.

“In a vacuum, the issue exists and it’s top of mind for a lot of Republican primary voters. But the race doesn’t occur in a vacuum,” Vickery says. “You’ve got incumbents who are running that voted for the private option, but have an impeccable conservative record and true conservative bona fides in their districts and are known for that.”

While the private option may be an Achilles heel, a challenger may have a tax vote or other liability on his or her record, Vickery adds. He also says the private option vote has a variety of components to it, such as hospital funding, nursing home support, or aid to community health centers. It is also providing health insurance to many who didn’t previously have options. That combination of outcomes makes the private option less black-and-white for a candidate and his community.

“The private option is unlike pro-life or pro-choice, which is a critical litmus test for a number of voters in Republican primaries,” Vickery said. “The private option has shades of gray to it, and I think it’s turning out where you’re seeing incumbents who voted for it still in a very strong, probable win position.”

The fate of the private option and its funding is certainly at stake in these primary races. How “strong” or “probable” its renewal will be next January when the General Assembly reconvenes could very well be determined by the end of the vote count on May 20th.

Building permit values for the cities of Fort Smith, Greenwood and Van Buren increased 26.23% in April from the same period in 2013. Permits issued in the three cities were $23.163 million, compared to $18.35 million in April 2013.

The first four months of the year have seen even larger gains, with values increasing 41.07% compared to the same period in 2013. During that period, permits totaled $64.95 million while the same four months in 2013 only had a value of $46.041 million. The 2014 figures also represent a 68.93% increase over the first four months of 2012, when only $38.448 million in permits were issued.

FORT SMITH
The city of Fort Smith saw the largest total of permits issued across the three cities in April, with 222 permits valued at $21.759 million being issued last month, an increase of 23.24% over last year's issuance of $15.62 million in permits.

While residential permits were a large portion of Fort Smith's numbers last April — a new mid-range apartment complex under construction at Chaffee Crossing accounted for a third of the city's building permits during the April period — a variety of smaller commercial and residential projects drove a more balanced permits report.

Forty commercial permits were issued in April with a total value of $11.869 million. The totals included four new projects valued at $5.815 million.

Residential activity was on par with last year's permits, with $1.8 million in duplex construction approved and an additional $4.783 million in generic residential construction permits issued.

GREENWOOD
Building permits for Fort Smith's southern neighbor were down 56.28% in April. Only $746,320 in permits were issued last month, compared to $1.707 million for the same period last month.

Of the eight permits issued in the city last month, four of those were new residential construction valued at $706,680, while two storm shelters were installed with a total value of $6,000.

VAN BUREN
Van Buren posted another double digit decline in building permit values for last month, just as it did in April 2013.

The city issued permits valued at $667,400 last month, a 34.76% drop from the same period last month of $1.023 million. That number was itself a 53.51% drop from April 2012, when $2.201 million in permits were issued in the city.

Driving Van Buren's numbers last month were 12 permits valued at $607,400 for new residential construction.

The city also issued two sign permits with a total value of $52,000.

2013 RECAP
Combined values in the three cities during 2013 were $203.037 million, compared to $157.32 million during 2012. The 2013 value is above the $201.079 million in 2011.

Fort Smith closed 2013 with the largest share of valuations, logging $177.687 million (a one-year increase of about 30.24% from $136.428 million in 2012), while Van Buren was the next largest with $17.067 million (a one-year increase of 38.96% from $12.282 million in 2012). Greenwood posted an additional $8.283 million, the only city to show a decrease from the previous year's total of $8.609 million (a decrease of 3.79%).

The gains in the Fort Smith market were largely from industrial construction projects at Chaffee Crossing, the construction of Mercy's new orthopedic hospital along Phoenix Avenue and various municipal construction projects across the city.

The acquisition activity for Pine Bluff, Ark,-based Simmons First National Corp. continues with the bank on Tuesday (May 6) announcing a $243.4 million deal to acquire Community First Bancshares based in Union City, Tenn.

The Community First deal comes less than two months after Simmons announced the $66 million acquisition of Little Rock-based Delta Trust and Bank, and comes less than a year after Simmons’ $53.6 million bid to buy Little Rock-based Metropolitan National Bank out of a bankruptcy process.

In a recent interview with Talk Business, Simmons First CEO George Makris Jr. hinted that the next moves might be in Kansas or Missouri.

“We really would like to fill in our footprint in Missouri and Kansas. We have a strategy now for de novo growth. We’ve got some really good bankers in those markets,” Makris said in the interview. “We need a little more scale in those markets to be able to do some of the things that we really want to do.”

Simmons said Tuesday that the Community First deal would immediately boost earnings. The deal is expected to close in the fourth quarter, and is subject to regulatory approvals.

"We are excited to welcome the associates and customers of First State Bank and its subsidiaries to the Simmons Family. As Simmons continues to expand its community banking strategy, it is important that we seek partners that have common goals, experience, and reputations as excellent corporate citizens. First State certainly fits that criteria," Makris said in the statement. "The leadership of First State throughout its 127 years has built a franchise focused on meeting the financial service needs of its customers in the markets it serves. We believe this partnership will enhance the customer experience for both Simmons and First State customers."

Simmons noted that the deal would provide the bank with an “Entrance” to the Nashville metro area.

As of March 31, Community First had $1.9 billion in assets, held $1.1 billion in loans and had $1.6 billion in deposits, and operated 32 “Financial Centers” in the state. According to the Simmons statement, the bank is the fifth largest bank based in Tennessee according to deposits. Union City is in the northwest corner of Tennessee.

As of March 31, Simmons First National was a $4.4 billion financial holding company with operations in Arkansas, Kansas and Missouri. Pine Bluff-based Simmons First posted first quarter net income of $4.35 million compared to $5.94 million one year ago. However after settling one-time charges associated with its acquisition of Metropolitan National Bank, Simmons First’s core earnings were $7.48 million for the quarter compared to $6.08 million one year ago.

"We at First State are excited about the strategic merger of our company with Simmons. The philosophy and strategic plan of Simmons mirrors that of First State in many ways," Community First President and CEO, John Clark said in the Simmons statement. "Both institutions are over one hundred years old with roots in rural markets and have completed successful expansions into faster growing metropolitan markets. Each places a strong emphasis on asset quality, stability of earnings and excellent regulatory relationships."

Simmons shares (NASDAQ: SFNC) were trading late afternoon at $36.66, down eight cents. During the past 52 weeks, the price of the thinly traded shares has ranged from a $39.05 high to a $24.06 low.

It was just earlier this year that the Fort Smith Board of Directors and the city were wrangling over risks and costs with the two men heading up the River Valley Sports Complex, with the project appearing to be up in the air at one point. But with the project moving forward, observers are likely to say what a difference a few months have made.

Sen. Jake Files, R-Fort Smith, along with Sebastian County Election Commission Lee Webb, have worked for the last two years to secure the nearly $4 million in funding and material donations to construct the RVSC at Chaffee Crossing, and while the city doubted engineering estimates of $40,323.50 provided by the men, which was well below the city's estimate of $420,000, the Board of Directors in March finally agreed to fund the project using money from the city's sales tax benefitting parks projects in return for the men deeding the property to the city upon its completion.

"I really feel like after that last set of meetings with the city, we came together and everyone was committed and wanted to see it completed,” Files said. “We set out and got an agreement from the city that allows them to see progress and release their portion of equity at different thresholds. That protects their interest and allows us to go about what we're doing and secure donations."

Since that time, Files said several conference calls and meeting have taken place with the U.S. Army Reserve regarding grading work.

"They've been here a couple of times and have walked the property and gotten their things in order," he said.

The property, donated by the Fort Chaffee Redevelopment Authority and located at the corner of Roberts Boulevard and Taylor Road, is in the engineering phase with Brixey Engineering, he said, which was the original firm RVSC wanted to use instead of the city's more expensive choice of Mickle Wagner Coleman Engineers.

"We're about 80% done on our engineering plans so that when the (reserve) is here August 1, they'll be ready,” Files said.

The plans includes the grading and design of the eight ball fields, as well as the parking lot and concession stands and restrooms to be located on site, as well.

At the time of the disagreement with the city over engineering, City Administrator Ray Gosack had said Brixey did not meet the state's requirement of "most qualified," which is why the city wanted to go with Mickle Wagner Coleman.

"His firm (Brixey) typically does high end hotels and to say someone's not qualified to do a concession stand with some restrooms and some storage area that does hotels on a daily basis is just flat false," Files said at the Jan. 14 study session of the Board of Directors.

Now approaching five months from that contentious study session, Fort Smith Parks and Recreation Director Mike Alsup said without the grading plan being developed by Brixey, it would be impossible for the military to do their site work, which will be conducted in two different two-week installments, with a completion expected by August 28.

In addition to the engineering work, Alsup said Files and Webb would be putting in some preparatory work before the military's arrival on-site.

"Between now and then, this is also part of what Jake and Lee will be doing, they will be clearing the site of trees. The Army Reserve…they need the trees removed. They don't need practice knocking trees down. So they'll have the trees removed and they'll have the grading plan to the reserve. That's really the main thing that has to be done by August."

Files added that with visible work starting to take place at the site due to tree removal and the planned involvement of the military, which is using the grading work as an exercise for the reservists from multiple states who will be working on the project, area residents will finally start to see work taking place on a project that has long been a dream of both Files and Webb.

The next phase in the project, which he said is already underway, is making sure donations of building materials and labor come through as promised.

"I'd say we've made contact with most of the folks who have been committed for a long time (to the project)," he said. "We're in the process of rounding things up and solidifying (commitments). Over 90% of the commitments we had made in the beginning are still there. We're just now getting to where we can see the architectural drawings and we just the amount of fencing and concrete (will be needed), those things that are not just pretty good estimates, but engineered drawings where we can say, 'We need X-amount of base for the parking lot. Can you help us out?' I think we're right were we thought we would be in terms of the economics of the project."

In order to keep the project going, though, Files and Webb will need to come back to the Board with updates, which they plan to do again within "the next few months," Files said.

In the meantime, Files said he and Webb have been working hard to get the project moving along for an opening next year.

"Our target is still opening in Spring 2015 and we don't see any reason why that's not achievable."

And as the opening date moves closer, there are already talks underway for the first tournament to take place at the 8-field tournament facility, he said.

"There've been some national baseball and softball contacts we've made who've contacted us about getting this thing up and going with tournaments and high-level activity to the complex. It's exciting to us and it's the economic development that we've stressed all along that would be a benefit to our region."

U.S. Rep. Tim Griffin, R-Little Rock, holds a decisive lead over his two Republican rivals in the race for Lt. Governor, but GOP voters are far from decided on the down-ballot contests for State Treasurer and State Auditor.

In the latest Talk Business-Hendrix College survey of 1,516 likely Republican voters, respondents were asked their opinions on choices for Lt. Governor, Auditor of State, and Treasurer of State.

There are three Republican candidates for Lt. Governor: Representative Debra Hobbs, Representative Andy Mayberry and Congressman Tim Griffin. If the election were today, for whom would you vote?
6%  Debra Hobbs
14.5%  Andy Mayberry
53.5%  Tim Griffin
26%  Don’t Know

There are two Republican candidates for Auditor of State: Representative Andrea Lea and Ken Yang. If the election were today, for whom would you vote?
32%  Andrea Lea
12.5%  Ken Yang
55.5%  Don’t Know

Representative Duncan Baird and Circuit Clerk Dennis Milligan are the two Republican candidates for State Treasurer. If the election were today, for whom would you vote?
10%  Duncan Baird
15.5%  Dennis Milligan
75.5% Don’t Know

“Tim Griffin has a reasonable chance to win the Lt. Governor’s primary without a run-off, which is testament to his strong name ID as an incumbent Congressman,” said Talk Business & Politics editor-in-chief Roby Brock. “With early voting just underway, the outcomes of the Auditor and Treasurer races are far from settled.”

Griffin launched his first TV ad of the primary season on Tuesday (May 6).

The winner of the Lt. Governor’s primary faces Democrat John Burkhalter and Libertarian Chris Olson in November. The winner of the Treasurer’s primary will be challenged by Democrat Karen Garcia and Libertarian Chris Hayes in the general election, and the Auditor’s GOP primary winner will face Democrat Regina Stewart Hampton and Libertarian Brian Leach in the fall.

ANALYSIS
Dr. Jay Barth, professor of political science at Hendrix College, helped craft and analyze the latest poll. He offered the following analysis:

Lt. Governor
With significant advantage over his opponents in name recognition, retiring Second District Congressman Tim Griffin also appears in solid shape in his race for Lieutenant Governor gaining the support of a slight majority of GOP voters; his two State Representative opponents – Andy Mayberry and Debra Hobbs – trail badly. About one-fourth of likely primary voters remain undecided in that race, creating some instability in the race, but Griffin appears to be a solid bet for a victory without a runoff. While Griffin runs solidly across the state, he is particularly strong in his home Second District where he gains the votes of 65% of probable voters.

State Treasurer
Much like the Attorney General’s race, the race for the GOP state Treasurer nomination remains very much in flux. Saline County Circuit Clerk Dennis Milligan has a slight lead on State Rep. Duncan Baird (15%-10%), but just at 3 in 4 primary voters remain unclear on their choice in the race.

Interestingly, some ideological factionalism is showing itself in the race as Baird leads among supporters of the private option (17%-13%) while Milligan leads with opponents of the plan (19%-11%). Baird was involved in creating the innovative program.

Auditor of State
Here, State Rep. Andrea Lea does have a lead on Ken Yang (32%-12%). Lea’s lead is shown across all key voting groups.  Despite her support for the private option, Lea has similar leads with both supporters and opponents of the law. While many voters remain unclear on their choice in the race, Lea must be considered a significant favorite going into the May 20th primary.

METHODOLOGY
This survey was conducted by Talk Business Research and Hendrix College on Tuesday, April 29, 2014. The poll, which has a margin of error of +/-2.5%, was completed using IVR survey technology among 1,516 Arkansas voters in all four Congressional Districts.

Voters had to have a history of voting in Republican primaries and they had to indicate their preference to vote in this year’s GOP primary to participate in the poll.

There were no cell phones used in this survey as it was not determined to largely impact the results collected from the initial IVR sample. The survey is weighted for gender and Congressional District based on an average of 2010 and 2012 voter turnout patterns.

Consumer sentiment is a strong factor in economic performance given that household purchases comprise about 70% of the nation’s gross domestic product. National polls like the Thomson/Reuters Michigan Sentiment Survey and the Consumer Sentiment Index are reported monthly. But, Arvest Bank seeks to drill down to a more regional and local reading of consumer sentiment with a poll of its own.

Arvest’s commissioned poll is expected to measure economic expectations and outlook of consumers in Arkansas, Missouri and Oklahoma. The bank said Wednesday (May 7) the first survey is underway among more than 1,200 consumers in the three-state area. The phone surveys are expected to be completed over the next several weeks. The bank said it commissioned the survey to better understand consumers’ views on the economic climate in Arkansas, Missouri and Oklahoma and to provide some factual guidance for business customers within the markets. 

“We at Arvest Bank are excited to learn all we can from this survey so we can better anticipate what our customers expect from their financial service provider,” said Jason Kincy, marketing director for Arvest Bank. “When looking at economic indicators, we are told that consumer spending accounts for about 70% of U.S. economic activity. If consumers feel confident enough in their local economy to begin shopping for a new car or to buy a new refrigerator, we, as a partner in their personal finances, need to anticipate and facilitate those needs.”

The Arvest Consumer Sentiment Survey will measure respondents’ opinions on their personal financial situation, future plans and general feelings about the economy. This will provide for a comparison with the national Surveys of Consumers conducted monthly by the University of Michigan for Thomson/Reuters. The results of this first telephone survey, conducted by the University of Oklahoma’s Public Opinion Learning Laboratory (POLL), will establish a baseline for future comparison of subsequent surveys that will be conducted every six months, Arvest noted in the release.

The results are expected in approximately two months. The data will be tabulated by the Center for Business and Economic Research (CBER) at the University of Arkansas at Fayetteville. Results will be further evaluated on an individual state level by CBER director Kathy Deck; David Mitchell, director of the Bureau of Economic Research at Missouri State University; and Russell Evans, director of the Steven C. Agee Economic Research & Policy Institute at Oklahoma City University.

The survey is designed to measure three primary indices mirroring the national Thomson/Reuters Michigan Surveys of Consumers. 
• Index of Consumer Sentiment
• Index of Consumer Expectations 
• Current Conditions Index 

Each survey respondent will answer questions about their financial situation, compared to a year ago. They will also be asked if they think they will be doing better or worse, financially, in the next year than they are doing now. Other questions will focus on respondents’ opinions on planned household purchases such as major appliances or new vehicles, how much consumer debt they have and how much of their income they are saving.

They survey also will ask about their chances of expanding credit card debt, or any difficulties they may foresee in obtaining credit. Lastly, the survey asked about business conditions for the coming year and any economic changes they expect over the next five years.

“We are excited to get this poll underway and to begin analyzing the results,” Deck said. “As with all first-time surveys, the results will provide a baseline number, a starting point for us to evaluate how that opinion changes in each state over time. Future reports of the Arvest Consumer Sentiment Survey will focus on how the results have changed, either for better or worse, from the baseline established during this first survey.”

The survey will have a sample size of 1,200 with 400 respondents from each state and a margin of error of 4.2% at the state level.

Spartan Logistics plans to expand its operations in Fort Smith by acquiring the almost 620,000-square-foot warehouse and distribution facility that is part of the Whirlpool manufacturing site that ceased operations in June 2012. The larger Whirlpool manufacturing building and ground remains dormant.

Columbus, Ohio-based Spartan, which announced in October 2013 it was leasing about 100,000 square foot of space within the Whirlpool distribution building, now employs 12 in Fort Smith with total employment possibly rising to around 200 when the space is fully utilized. Ed Harmon, chairman of Spartan Logistics and president of its associated industrial development and real estate company, told The City Wire that not all of the new employees would work for Spartan, but may work for Spartan clients within the facility.

Spartan Logistics is a second generation family business with more than 25 years in the business of supply chain solutions. The company employs 300 in and operates 17 locations in four states. The company has more than 3 million square feet of space under management.

The company also manages two building in Little Rock for customers, with customer-support operations also in California.

“We’re basically from New York to California,” Harmon said when asked about the Spartan service area.

Harmon also stressed that Spartan and its associated companies provide “one-stop shopping” to many Fortune 500 companies with a packaging handling, light manufacturing, packaging assembly, inventory controls, shipping and other needs. Harmon said it’s likely the company may expand or build new structures on the property it acquires from Whirlpool to provide specialized assembly or warehousing needs.

“We’ve done this in the past with other sites throughout the country that we have purchased,” Harmon said. “We’re very enthused to be in Fort Smith ... and know that we’ll have a lot of those opportunities there.”

The deal with Whirlpool is expected to close later this year. However, the deal with Whirlpool allows Spartan to immediately begin operating in the entire facility.

“Whirlpool has been great to work with in this process and although they regret closing this facility, they want to see it put quickly back into productive use and contribute to the Fort Smith economy,” Harmon said in a statement provided by the Fort Smith Regional Chamber of Commerce.

Tim Allen, president and CEO of the Fort Smith Regional Chamber of Commerce, said Spartan’s decision is important because it shows that the property is active.

“The sale of the Whirlpool facility to Spartan Logistics is outstanding news for this community. Spartan Logistics believes Fort Smith will play an important role in the company’s strategic plan. To have a world-class company like Spartan Logistics permanently located on that property will help bring that area of Fort Smith back to life,” Allen said in the statement.

Benton Harbor, Mich.-based Whirlpool Corp. announced in October 2011 it would close the Fort Smith plant. The eventual June 2102 closure of the plant marked the end of more than 45 years of Whirlpool operations in Fort Smith. Employment at the refrigerator production plant ranged from a high of 4,600 in early 2006 to around 1,000 when the plant closed.

History is on a course to repeat itself no matter how technology changes the retail landscape. In the 1960s, calling in grocery orders for home delivery was common in American cities and towns across.

In more rural areas a shopper might go to town on Saturday, purchase their weekly goods and have those groceries delivered by the store operator. It was also common for milk and dairy to be delivered each week by the local milk man. This was done without a sophisticated supply chain and long before computer algorithms became commonplace in retail.

But today, retailers from Amazon to Wal-Mart and many others are in a moon race to give consumers convenient grocery delivery through numerous formats.

Amazon recently announced its Prime Pantry option which will allow consumers to shop for groceries online and have them shipped to their home for a flat rate of $5.99. The flat rate is good for up to 45 pounds of product. For access, users have to be Prime members which is a $99 annual subscription rate.

AMAZON, GOOGLE TESTS
Amazon said this service is good for bulky, stock-up items like large packs of paper towel or fridge packs of soda. With this venture Amazon appears to target the legion of 140 million Wal-Mart Supercenter shoppers a week. Prime Pantry plans to ship the products within one to four business days. This initiative comes on the heels of the Amazon Fresh test which is available in San Francisco and Seattle. 

Jason Long, CEO of Shift Marketing Group in St. Louis, said he has tinkered with Prime Pantry online since it was announced. 

“It’s smart and easy. I filled one box almost full with a bag of dog food, a 12 pack of toilet paper, 6 rolls of paper towels and a box of cereal. It looks to me like Prime Pantry is an attack on Club stores or anywhere consumers buy in bulk,” Long said.

He doesn’t see Prime Pantry making a huge dent in Club sales at this point given so much of Club grocery sales are around fresh and frozen products. He said Prime Pantry is a great alternative for center-store items – and at a $6 delivery charge not much more than gas to get back and forth to the store, not to mention the time saved and hassles avoided. Yes, it can take up to four days to get delivery but a little planning can solve that problem. That said, Long believes Prime Pantry is an obvious way for Prime subscribers to help justify the new $99 Prime charge.

There is ample competition in the San Francisco market with Google’s Shopping Express available in 88 zip codes throughout the Bay Area since September. Google allows consumers to shop online from 17 difference retailers, including Walgreens, Staples and Target, and then Google delivers the purchases within a three-to-four hour window. The cost is $4.99 for each store in the order.

The Google Shopping Express is more than just groceries, but according to the San Jose News, the most popular items ordered are grocery — mayonnaise, baby food, Nutella, candy and coffee. The most popular days for orders are Sunday and Monday. Other popular items include: Sriracha hot sauce, toothpaste, potting soil and soup.

Some believe this business model is flawed because neither the consumer nor the company wants to pay for the full cost of delivering low-margin products from big-box and drugstores, and a $5 fee doesn't come close to covering expenses.

"Google is subsidizing same-day delivery," according to Sucharita Mulpuru, an e-commerce expert at Forrester Research. In general, she said, “it's not cost-effective to deliver something like diapers. ... Store pickup is a better option in the U.S."

ONLINE PICK-UP
Grocery pick-up is also makes more sense to Long, who can see more grocers delving into this convenience option.

Wal-Mart has tested online grocery with pick-up in San Jose, Calif., and Denver in an initiative called Walmart to Go. But last week the retail giant told The City Wire it plans to build an online grocery fulfillment center with drive-in pick-up for more than 10,000 grocery items including meat, dairy and dry grocery. This is the retailer’s first test with this type of grocery fulfillment and unlike the other online grocery options it’s being offered in a town of 35,000 — Bentonville.

City planners approved the large scale development on Tuesday (May 6)granting Wal-Mart three waivers as requested to meet the city’s guidelines. The waivers involved parking stall depth, number of curb cuts and building material. Wal-Mart said the online grocery fulfillment service will be offered later this year in Northwest Arkansas.

Population density has been a key metric for retailers wanting to test online grocery. The recent Wal-Mart initiative is being tested in a small market, like hundreds of others where the retailer already enjoys strong brand recognition.

Long said for retailers, the cost structure of a drive-in and pick-up model is advantageous to home delivery, especially in less densely population areas.

“For consumers, they still experience the trip to the grocery store, and the psychological satisfaction of providing for their family, without the hassle of going inside or worrying about delivery times, a stranger coming to their home, etc. Prime Pantry can’t offer this experience,” Long said.

San Antonio-based H-E-B, an aggressive grocery competitor of Wal-Mart in south and central Texas, announced its own plans to offer online sales this later this year. Bob McCullough, senior vice president of manufacturing for H-E-B, recently told the San Antonio Business Journal the online operation will be a world-class offering, but he gave no further details.

H-E-B operates 337 stores in Texas and Mexico and has sales of more than $18 billion, making it one of the nation’s largest grocery chains. It makes and processes food products at more than a dozen manufacturing facilities, including three dairy plants.

Allegations of an abortion and past arrests have thrown a wrench in the race for state representative in District 76, just as early voting began earlier in the week.

The allegations, reported first by Matt Campbell of the left-leaning Blue Hog Report blog, also appear to indicate that Republican Bobby Altes — the son of term-limited Rep. Denny Altes — has apparently had two criminal charges brought against him and has been late on child support.

In the article, Campbell points out that one of Altes' ex-wives went to the police with allegations of abuse, with Altes eventually being charged with third degree domestic battery in 2006. The couple separated later that year.

The article also details missed child support payments of $100 per month for children Altes had with the same woman, with Altes' ex-wife eventually filing a motion for contempt in August 2007.

In addition to the allegations of domestic battery and failure to pay child support, Campbell's article also included a March 7, 2006, report from the Sebastian County Sheriff's Department that detailed an alleged aggravated assault at the hands of Altes.

The incident report from the Sheriff's Department alleged that Altes pulled a .357 revolver on Jerry Clardy, a former employee, when the man came to Altes' office to pick up his last paycheck.

"Mr. Clardy stated that when he asked Mr. Altes for his paperwork and his payroll information that was visible on Mr. Altes' desk, he then reached for the payroll information and told Mr. Altes that he would give the paperwork to his last supervisor, Bill," the report read. "At this point Mr. Altes pulled a .357 Magnum (revolver) and point it at him while telling him to get away from his desk and Mr. Clardy immediately dropped the paperwork and walked away while Mr. Altes had the handgun pointed at him."

In the report, an officer with the Sheriff's Department reported that when reached for comment, Altes did not deny the incident.

"Mr. Altus stated that because of Mr. Clardy's size he (Robert Altus) was afraid for his safety," the report read. "Mr. Altus stated that he then reached into his desk and took out a .357 revolver and placed it on the desk and told Mr. Clardy to leave. Mr. Altus stated that Mr. Clardy then returned the checks and left the building."

Campbell's article also stated that a second woman with whom Altes allegedly fathered a child filed a petition for failure to pay child support in September 2011.

Perhaps most damaging of all were allegations that Altes impregnated another woman who he was married to and drove her to a Tulsa, Okla., abortion clinic where the pregnancy was terminated.

A document linked to the article appears to show a receipt for an abortion, with the woman's maiden name listed on the receipt.

Multiple attempts to contact Altes and his father on their cell phones were unsuccessful, as were calls to Altes Sanitation Service, with a female who answered the phone stating that both men would be out of the office for the rest of Wednesday.

Sebastian County Republican Party Chairman Rex Terry released a statement and said he was assured by Altes before he announced his run for state representative that "nothing in his past conduct" would be a problem.

"I was disappointed and sorry to learn about the disclosures regarding Bobby Altes, a Republican candidate for House District 76. It is of particular concern to me since when I spoke with him months ago about the possibility of running for office, he assured me there was nothing in his past conduct that if disclosed, would reflect poorly on himself, the people of the district, or the Republican party. That appears not to be the case," Terry noted. "Leadership descends from character. Personal character is, for me, the most important attribute of anyone who seeks election to political office. The public has a right to know the truth about their candidates, and we should all be thankful for a free press when it exercises its constitutional duty of reporting facts that are of vital importance to an informed electorate."

Mat Pitsch, Altes' opponent in the District 76 Republican primary, did release a statement to The City Wire in which he called the allegations against Altes "a sad story on many fronts."

Early voting for the Republican primary has already begun. The primary will take place May 20. With no Democratic challenger, the winner of the District 76 race will become the district's next state representative.

A Van Buren-based company is banking on the support of generous strangers as it attempts to raise $250,000 to fund development of a new video game using local students to get the game to market.

The company, JAZ Games, was founded by siblings Jacob, Allyson and Zachary Siler, who are all graduates of the University of Arkansas at Fort Smith.

According to Jacob, the CEO of the company, the idea for a the new game came to him about a year ago.

"I was just outside walking with one of my friends and I was thinking about the future of gaming," he said. "I had thought about online games a lot and I just had this idea. 'Wouldn't it be awesome to have a steampunk game that had a vast world and included open exploration of it?' I just had that spark and as I kept going through the months, the idea formed into this project, this series of games."

Before going any further, a definition of "steampunk" may be necessary. According to Dictionary.com, steampunk is"a subgenre of science fiction and fantasy featuring advanced machines and other technology based on steam power of the 19th century and taking place in a recognizable historical period or a fantasy world." Siler broke it down even further.

"Steampunk is the idea of retro futurism," he said. "In the case of steampunk specifically, it's the idea of the Victorian Era with futuristic ideas and technologies. It's also known as neo-Victorian."

With that out of the way, Siler said he and his siblings determined that Kickstarter would likely be the best and easiest way to fund their new project.

Initially, the trio published a book and raised 200% of the funding they were seeking through Kickstarter.

The book, he said, serves as the introduction to the video game "Sky Bridge: Fallen Stars," which describes a variety of characters fighting "their way deeper into a web of mystery and intrigue, they begin to discover that the lines between good and evil are not as clearly defined as they once believed. When secrets threaten to tear them apart, they must weigh their dedication to their cause against the cost of battling a conspiracy which could ultimately destroy the fabric of their civilization."

The money raised through the campaign will get the game off the ground, Siler said, through allowing the company to hire a variety of programers and graphic artists.

"The majority of the cost is so that we can set up our workspace, our office and furnish it with employees for long enough to complete the game," he said. "Most of the cost there is going to employees. We want to get as much of that money into work on the game as we can."

The company will also use interns from UAFS, he said, adding that the company would likely "cycle through" interns over multiple semesters while the game is in development.

Dr. Argie Nichols, a UAFS professor and the department head of Computer Graphic Technology, said students working toward a bachelor of arts in animation technology would be a good fit for companies like JAZ Games.

"Because they are internship positions in animation, the students can work here on our machines, our software. They can get real world experience and gain college credit at the same time," she said, adding that she was scheduled to meet with the company within days to work through details on the internships, which she said would be paid.

Nichols added that the degree program, which is only about two years old, allowed the university to service all sorts of businesses in the region, not just JAZ Games.

"The world is going to 3-D," she said. "It's not just video games. We've done real world projects, training videos for Gerdau, training videos for the Arkansas State Police, forensic videos for airplane crashes and car accidents. We even did a 3-D recreation for the Pentagon when 9/11 occurred. That particular one we had to keep quiet. We had to have government clearance to do that."

With the university's technology and interns coupled with Kickstarter funding, Siler is hopeful the project can get off the ground and on Apple and Windows-based computers sometime in "early 2015," all while employing between 40-50 people. But securing the $250,000 needed to get jumpstarted will be tough with only $800 raised toward the goal. It's a situation Siler said could be a challenge.

"We set out funding goal at $250,000. It's a lot for an unknown company, I think, but it's exactly what we need to accomplish the project."

Bobby Altes, a Republican candidate for state representative in District 76, is staying in the primary race and may push back with legal action to counter reports that detailed past allegations of domestic abuse, assault charges, and an allegation of an abortion by one of Altes' ex-wives.

In a Thursday afternoon (May 8) telephone conversation with The City Wire, Altes addressed the allegations in the article – which stemmed from a report first posted by the left-leaning Blue Hog Report–and said he was cleared of any wrongdoing in both criminal cases. (See his full media statement at the end of this report.)

"There's allegations of that, but I've never been charged with anything criminal, much less convicted of anything criminal," he said, adding that "there's two sides to every story."

He also said District 76 voters should not let the reports influence their vote, adding that he will not drop out of the May 20 Republican primary.

"My personal life has never interfered with my business life nor would interfere with my political life. It's a last minute attack and it's a pretty ugly one at that."

Altes, the son of outgoing Rep. Denny Altes, R-Fort Smith, said the allegation of domestic battery dating back to 2006 was baseless and charges against him in that case were dropped.

"More or less, it was an argument and then, like I said, there was no charges brought because there was no evidence or any kind of physical contact, if you would. There was no…it was dropped. The charges were dropped. There was just nothing to it."

The other criminal case involving Altes stemmed from a March 7, 2006, incident in which Altes confirms that he brandished a handgun during an altercation involving a former employee. According to a Sebastian County Sheriff's Department incident report, Jerry Clardy claimed Altes pulled the gun when he went to Altes' business to pick up his last paycheck.

"Mr. Clardy stated that when he asked Mr. Altes for his paperwork and his payroll information that was visible on Mr. Altes' desk, he then reached for the payroll information and told Mr. Altes that he would give the paperwork to his last supervisor, Bill," the report read. "At this point Mr. Altes pulled a .357 Magnum (revolver) and point it at him while telling him to get away from his desk and Mr. Clardy immediately dropped the paperwork and walked away while Mr. Altes had the handgun pointed at him."

During the conversation with The City Wire, Altes said he feared for his life during the confrontation with Clardy at which time he opened a desk drawer and displayed the gun, identified in the incident report as a .357 Magnum Revolver.

"The law says if you feel threatened for your life, then you're within your rights to protect yourself," he said. "And there (was) this guy…it seemed to me that he smelled of alcohol when he came in. There were other people who witnessed it. He came in and he was agitated and he was threatening. And then like the report says, he starts ripping papers up off the desk. I just basically pulled the desk drawer back and there was a pistol in there. I said, 'You need to put my papers down and leave.' That defused the situation. Like I said, I don't know why it wasn't in the report, (but) there were threats that were made and it was a pretty tense situation."

During the altercation, Altes alleges that Clardy "said something about he was going to get me. I don't know much beyond that. That's been a while back."

Regarding allegations by Altes' second ex-wife that her drove he to a Tulsa, Okla., abortion clinic to terminate the pregnancy, Altes denied the charge and said if his ex-wife did abort one of his children, she did so without his blessing.

"Right, that would be against my wishes," he said.

Altes made clear that he did not know about the abortion or whether it even occurred.

"Correct. And I don't know. I've seen some paperwork, but I don't know the validity of it."

As a result, Altes said he would be releasing a statement to the media later Thursday stating that he would pursue legal action against his ex-wife as a result of the allegations she made against him. As for what the legal action could be, Altes would not say.

"I don't want to say too much or anything since there is legal action pending."

Regarding a statement from Sebastian County Republican Party Chairman Rex Terry that Altes misled him about his past behavior and how it could harm the party, Altes declined to comment "at this moment," adding that he was shocked at all of the allegations included in the Blue Hog Report article.

BOBBY ALTES STATEMENT
I wish when I married that it would be happy ever after but life had other plans. Some of you might even understand through your own experiences. I am not perfect. I've had some disappointments in my past, but I've grown from them.

I deny the allegations that I have been accused of. I have never forced anyone to do anything, nor do I have control over their decisions. I have never been charged or convicted of any crime. I have paid every dime of support and have never been held in contempt of court.

There are two ways to win an election. You can work hard and shake the hand of those you hope to serve and listen to their concerns, or you can make up lies and half truths and throw mud to try to win.

My opponent underestimated me as a challenger. Now he's tried to dig up dirt, contacting exes and encouraging them to smear me. Perhaps he should have worked harder and met the constituents.

I choose to take the high road and not to release negative information about my opponent. It saddens me that this has become a smear campaign and that parties have chosen sides who should have remained neutral.

My personal life has never interfered with my professional life nor would it in my public life. I remain dedicated to getting Fort Smith back to work, good schools, and local control.