As business and political leaders in Arkansas begin work on how to improve broadband access to public schools in the state, one of the leading cable and Internet providers in the state is rolling out a program to reach low-income K-12 students.

Cox Communications announced Thursday (July 25) a partnership with Connect2Compete designed to increase Internet access and provide low-cost computers to families who qualify for the federal free- and reduced-lunch program. Connect2Compete is a not-for-profit initiative that works nationwide to provide “affordable high-speed Internet, low-cost computers and free digital literacy training to families nationwide.”

Eligible families may obtain Cox high speed Internet for a deeply discounted price of $9.95 a month for two years, along with a free cable modem rental, free installation, and no deposit or contract.

“Cox has a long history of supporting broadband adoption programs across the country, and doing so in a way that connects the most vulnerable members of our society – our children – so they can compete and have a greater chance of success in the digital world that awaits them,” Kim Rowell, Cox Arkansas market leader and vice president of field services, said in a statement.

The Cox eligibility requirements include:
• Families have at least one child receiving free lunch through the national school lunch program;
• Must live in a Cox service area;
• Have not subscribed to Cox Internet service in the past 90 days;
• Do not have any outstanding past due payments to Cox.

Kelly Zega, a spokeswoman for Cox, said the normal charge for basic Internet speed is $34.99 for an introductory offer, then up to $42.99 after several months. Based on those fees, a qualifying family would receive an almost 77% discount on an Internet access charge.

The primary Arkansas markets for Cox are the Northwest Arkansas and Fort Smith metro areas and the Harrison-Berryville area in north central Arkansas. Zega said in the school districts in those markets there are an estimated 48,294 children who qualify for free or reduced lunches. Because there may be several qualifying children per household, he number of eligible households will likely be fewer, Zega explained.

“But even if a portion of those children can gain access through what we are offering, that could be a game changer,” Zega said. “And I’d like to add that it doesn’t just help them (children). This is equally critical for the parents so they can have that access ... to monitor their (child’s) progress at school.”

The “game changer” element is what Arkansas Gov. Mike Beebe has recently asked education and business leaders to address with respect to improved Internet access at Arkansas’ public schools.

Earlier this month, Beebe convened two working groups – Fast Access for Students, Teachers and Economic Results (FASTER) and the Quality Digital Learning Study (QDLS) committee – to find ways to boost broadband access to nearly 460,000 Arkansas K-12 students.

According to the Arkansas Department of Information Services (DIS), only a handful of the state’s public schools may have a nationally recommended broadband capability of 100 Mbps per 1,000 students and staff. The average Arkansas school district with 1,800 students currently has 40 Mbps of bandwidth and needs at least 140 Mbps more, the department concluded. Business leaders with leading Internet Service Providers (ISPs) contend the situation is not nearly as negative as the DIS report projected.

Without the necessary bandwidth, Arkansas public schools could be in jeopardy of failing to meet forthcoming Common Core testing standards and perhaps, more importantly, students and teachers could miss out on new digital academic opportunities that are redefining the education delivery system.

Zega told The City Wire that the Connect2Compete partnership announcement was not driven by Beebe’s push, but could help in the effort.

“It is an interesting coincidence, but this has been a program that has been in the works for a long while,” Zega said. “We are happy that a solution is coming into play at the same time a bright light is now on this issue in Arkansas.”

Zega also said some school administrators are pleased with the plan because it may encourage participation among qualifying families who have chosen to not sign up for the free or reduced school lunches. For parents who may simply be too embarrassed to sign up, the possibility of inexpensive Internet access may overcome that anxiety, Zega said.

“If that encourages them to sign up, and they get that (Internet) access to their home, then that helps those kids and it also helps the school,” Zega said.

The roar of bulldozers and construction equipment has become a common occurrence at Chaffee Crossing during the last several years and according to Ivy Owen, executive director of the Fort Chaffee Redevelopment Authority, citizens have not seen anything yet.

"When I got here in 2007, the only thing that was here was a road bed," he said of the area, which includes what will become Interstate 49. "The prospects of (I-49) getting build then wasn't very good. The funds weren't there.”

But with the expected completion of the highway by the middle of next year and the announcement of several new projects, Owen said the future is bright for the development to the east of Fort Smith, with the sound of construction equipment not being a nuisance, but instead being a sign of progress.

"People are going to start seeing a lot of businesses coming out of the ground. We've sold a lot of property in the last two or three years," he said. "Now that people are going to see the interstate done, buildings are going to start coming up. We've had a lot of announcements of groundbreaking."

Among the large projects to be announced, started or completed so far this year are the following:
• Atlanta-based Phoenix Metals Company announced plans to invest $12 million in a new 65,000-square-foot metal processing operation at Chaffee Crossing that could employ up to 40 with an average wage of $15 per hour on March 31;

• The Arkansas Highway and Transportation Department moved their District 4 headquarters from a location on Towson Avenue in Fort Smith to a larger, brand new facility at Chaffee Crossing;

• Plans for a new 70-store shopping center at the intersection of I-49 and Arkansas Highways 22 and 59 was announced on July 2, which could bring hundreds of jobs to the area;

• Construction has begun on a new 500-unit apartment complex near the intersection of Massard Road and Chad Colley Boulevard. The complex will be known as The Reserve at Chaffee Crossing; and

• Umarex and Walther Arms, Inc., announced they would share a campus in Fort Smith, housing the expansion of Umarex operations and North American headquarters for Walther, makers of the iconic James Bond pistol.

"Things are going in a great direction," Owen said.

And while the anticipated completion of the stretch of interstate is expected to make a big impact on development in the area, he also pointed to easing of lending policies at not just large, national banks, but also smaller local banks.

"The economy is up, the trend is there, banks are loaning money. Two years ago, you couldn't beg a dime out of a bank. Now local banks are loaning money. Developers are loaning for these (commercial, industrial and housing) developments."

As the area continues to grow, with several housing developments underway in addition to the Reserve at Chaffee Crossing, Owen said the demand for schools will go up, as well, with both Fort Smith Public Schools and Greenwood Public Schools seeing an increase in student enrollment.

With the vast majority of development taking place within the Fort Smith district, Owen said it was only a matter of time before the district would start looking at the placement of a third high school, likely at Chaffee Crossing.

But according to Zena Featherston, director of communications and community partnerships at Fort Smith Public Schools, a new high school at Chaffee is far from certain.

"There is still a lot of work to be done to determine without a doubt that there will be a new high school at Chaffee Crossing," she said. "It is going to require the continued efforts of the school board as they explore the possibilities of a new facility and it is going to take effort to establish the appropriate schematics that we have to have so we can apply for partnership money. Until we know whether or not or how much partnership money we will be eligible for from the state, we have to wait on those things to happen before we can approach the possibility (of a new high school) 100%."

In Featherston's estimation, a groundbreaking is not likely for another three to five years.

"We are hopeful that in fact we will be able to do that in the next few years and we are moving toward that goal, but it's not 100%. There are a lot of factors that have to work in favor of that development."

Even if a new high school is not a certainty, Owen said other possibilities are.

"The land swap with the military is still going forward. We signed the (contract) with the Corps of Engineers and the National Guard for two parcels - 200 acres we're giving to the military and we're getting 520 in return on the south side of Custer Road. To me, it's great for both parties."

The property given to the military, Owen said, would likely be used for base housing while the property given to the FCRA would be available for industrial development.

"To us, 522 acres can easily be used for industrial. It's right across from our industrial properties. That would be our first choice. They predict, the Corps predicts, (completion of the land swap) in a year to 18 months. I think it will be sooner than that."

But the biggest, most watched project of them all is still the I-49 project, which was halted following a lawsuit from a property owner who said the general contractor on the project had trespassed on his property.

District 4 Engineer Chad Adams of the AHTD said he was unable to comment on the lawsuit, which was settled yesterday for undisclosed terms.

"We have a contract with that contractor (APAC Tennessee) who had some sort of agreement with the property owner to get material off of (his land)."

With the lawsuit settled, work that has been halted for months will finally begin again, though Adams timeline for completion of the highway differs from Owen's estimate of mid-2014.

"Yes, I'd say the middle to late part of 2014," Adams said. "It's a working-day contract, which means we charge time when conditions are conducive to construction. Usually rain is what impacts the schedule."

He said since construction was halted for a number of months, the contractor would be charged for the delays.

"We still expect the contractor to provide the services we contracted them for."

Home sales in Arkansas’ four largest markets during the first half of 2013 were up almost 10%, with only the Fort Smith metro area seeing a decline in the number and value of homes sold in the six-month stretch, according to The City Wire’s Arkansas Home Sales Report.

For the first six months of the year, Pulaski County had a narrow hold on the top Arkansas county for home sales. The county, with a population of around 390,000, had 2,144 home sales between January and June. Benton County, with a population of around 230,000, posted 2,125 home sales in the same six month period.

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

In the four markets, the number of homes sold totaled 9,671, up 9.57% compared to the first six months of 2012. The value of homes sold in the four markets between January and June totaled $1.614 billion, up 12.65% compared to the same period in 2012.

For the first six months of 2013, the number of homes sold in central Arkansas are up 8.9%, up 10.74% in the Jonesboro area and up 14.09% in Northwest Arkansas. Sales during the same period are down 2.49% in the Fort Smith area, and the values are down 7.12% compared to the first six months of 2011.

The average sales price of a home sold in the four markets during the first six months of 2013 was $166,908, up 4.65% compared to the 2012 period, and up 13.05% compared to the 2011 period.

JUNE ACTIVITY
Home sales activity was up for three of the four markets during June. There were 899 homes sold in central Arkansas, up 4.9% compared to June 2012, and up 6.26% compared to May 2011.

June home sales totaled 643 in Northwest Arkansas, up 3.7% compared to June 2012, but down 0.46% compared to June 2011.

Jonesboro area home sales totaled 166, up 5.06% compared to June 2012 and up 7.1% compared to June 2011.

In the Fort Smith area, home sales totaled 153, down 13.07% compared to June 2012, and down 18.18% compared to June 2011.

Total sales during June were up 12.79% in central Arkansas, up 8.49% in Northwest Arkansas, up 4.87% in the Jonesboro area, and down 15.04% in the Fort Smith region.

THE REGIONAL PICTURE
Central Arkansas — Home sales
Jan.-June 2013: 4,599
Jan.-June 2012: 4,240
Jan.-June 2011: 4,005

Fort Smith area — Home sales
Jan.-June 2013: 783
Jan.-June 2012: 803
Jan.-June 2011: 843

Jonesboro area — Home sales
Jan.-June 2013: 897
Jan.-June 2012: 810
Jan.-June 2011: 859

Northwest Arkansas — Home sales
Jan.-June 2013: 3,392
Jan.-June 2012: 2,973
Jan.-June 2011: 2,878

The top five counties in terms of Jan.-June 2013 home sales:
Pulaski — 2,144, up compared to 2,031 in 2012
Benton — 2,125, up compared to 1,850 in 2012
Washington — 1,267, up compared to 1,123 in 2012
Faulkner — 718, up compared to 583 in 2012
Saline — 711, up compared to 637 in 2012

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

BEHIND THE NUMBERS
Kathy Deck, director of the Center for Business and Economic Research at the Sam Walton College of Business at the University of Arkansas, said better housing markets are largely the result of economic improvement around the nation. She said prices generally rise after a period of decline. She added that existing home owners are in a better position these days – the market for new homes pretty all but collapsed after 2007 and has been recovering since.

In general, Deck said labor markets have improved and that has led to increased demand for homes. Higher average sales prices, she said, are a natural consequence of increased demand.

Chuck Warford a Realtor with iRealty Arkansas, believes rising interest rates have contributed to increases in sales. According to the national Mortgage Bankers Association, the average interest rate on a 30-year, fixed mortgage was 4.58% on July 19 – a far cry from rates below 4% just a few months ago.

“The days of the 3 percent mortgage are probably gone,” Warford said.

Those rising rates have caused potential buyers to stop waiting for further drops and start buying before additional increases hit mortgage markets. Still, he said current rates are historically low. Warford saw interest rates as high as 15.5% in the early 1980s, so today’s buyers are still in great shape by comparison.

Jeff Collins, the economist for The City Wire, said interest rates are a tricky thing to predict and he’s not convinced they will rise much more in the near future. Collins said the unemployment rate has improved, but not enough to cause dramatic upward pressure on mortgage rates.

Arkansas’ unemployment rate in June was 7.3%. Collins said it needs to drop below 6% before demand for homes increases to a point where there will be upward pressure on interest rates.

The more than 250 mortgage bankers surveyed by Mortgage-X in its weekly Mortgage Rate Trend Survey tend to agree that interest rates will rise slowly – but not substantially – in the months to come. According to the July 22 survey, 48% of the bankers polled believe rates will rise slightly over the next 90 days.
mortgage-x.com/general/rate_trend.asp

MIXED FORT SMITH MARKET
Declines in the region are primarily seen in Crawford County.

Realtor Jason Kilbreath of Ron Calhoun & Associates said many factors are playing into the decline in home sales north of the Arkansas River.

"There's several factors. One can be the I-540 road work," he said, adding that the construction is causing many people to evaluate commute times when searching for a home.

Other factors Kilbreath mentioned include high gas prices and the possibility of the rural development loan going away. The loans are part of the farm bill, which has become a contentious issue as Congress has been debating renewal of the bill.

"I think the loss of the rural development loan is definitely going to continue to hurt sales. That's what a lot of people, especially first time buyers, that's what they use."

The beneficiary of Crawford County's woes appears to be Sebastian County, according to Kilbreath.

For the first half of the year, Sebastian County had an increase of 7.78% in home sales, with 564 homes sold with a value of $76.824 million from January to June. The same period last year saw 532 homes sold with a value of $71.277 million.

In Crawford County, only 219 homes were sold during the first half of this year at a value of $23.127 million, a 26.76% drop from the same period last year, when 271 homes were sold at a value of $31.578 million.

HOT MARKET IN NWA
Through the first half of 2013, Benton County has been hot with 2,125 sales valued in excess of $392.685 million. Agents sold 275 more homes this year than last and total sales volume is up by more the $72 million through the first half of the year in Benton County.

Through the first half of this year, agents sold 1,267 homes in Washington County, units rose 12.8%. Total volume was more than $218.598 million, up 22% from the same period last year.

The local Coldwell Banker franchise reports its sales volume rose 13% in June and is up 25% through the first half the year, compared to the same periods in 2012, according to CEO George Faucette.

“Our new written business continues to keep pace with the closed business,” Faucette said.

Vickie Briolat, agent with Crye-Leike Real Estate, said location is important to seller’s getting the prices they want.

“While prices are better in many areas, there is still a gap in the outlying areas such as Pea Ridge,” Briolat said. “I have a beautiful listing in Pea Ridge, 1,700 square-feet, granite countertops, pristine condition home built in 2006. We have gotten three offers, but no where near the $144,000 listing price. Two were so low, we couldn’t even counter.”

She has another listing in Pea Ridge at $108,000 and the top offer received has been $90,000.

The standard practice at Sebastian County Quorum Court meetings since 1977 has been to take care of business, including votes, prior to allowing public comment at the end of the meeting. But one member of the Court is trying to change the county's public comment policy in order to allow more involvement in the county's legislative decisions.

Justice of the Peace Danny Aldridge requested that Prosecuting Attorney Dan Shue, who serves as the Quorum Court's legal counsel, provide a legal interpretation of the Arkansas law that defines how public comment is to be conducted at public meetings.

"In any meeting required to be open to the public, the county quorum court, committee, board, or other entity shall adopt rules for conducting the meeting which afford citizens a reasonable opportunity to participate prior to the final decision," the law reads.

Aldridge said he was told by Shue that the Court could "basically do what we wanted to as long as we had public input."

Matt Campbell, a former researcher and staff attorney for the Arkansas Supreme Court and an attorney at Pinnacle Law Firm in Little Rock who focuses on government transparency and public access to information, said his understanding of the law was similar to what Aldridge said he was told by Shue.

"Not under the statute, it's not (legal)” to only allow public input after votes are taken, he said.

He said holding off on public comment until the end of Quorum Court meetings, after all votes have been cast and the public cannot attempt to persuade the votes of Court members, was not what the law intended.

"Section 14-14-109(b) clearly anticipates that whatever rules a quorum court adopts, they will give people 'a reasonable opportunity to participate prior to the final decision.' The Arkansas Supreme Court has said for decades that, where a statute is enacted for the public benefit, it will be interpreted in the manner most favorable to the public," Campbell said. "With that in mind, I can't see how restricting public comment until all the voting is done even comes close to satisfying the 'prior to the final decision' language of the statute."

Shue said after a review of the law, it was fairly "straight forward, what needed to be done," adding that the Quorum Court now has to fix the procedure that has been in place since Jimmy Carter was in the White House.

"It makes it clear, the public should be able to make a comment before the end (of a meeting),” Shue said.

Aldridge said since the Quorum Court gets to decide what to do with regard to public comment, he would like to have meetings function similar to how the city of Fort Smith conducts its twice-monthly Board of Directors meetings.

"If you go to city directors meeting, you have a table that has two sheets - one addressing any items on the agenda and one to address the Board at the end of the meeting."

Each vote taken by the city Board takes place after the Mayor asks whether members of the public have asked to speak on the proposed ordinance, resolution or other legislation.

"But people have had a chance (to speak) before the vote is taken. They've heard everybody's input and logic on it, so they can decide whether they want to speak or not," Aldridge said. "Right now when you go to a Quorum Court meeting, there's not even an agenda for people to know what we're talking about, much less a sheet to sign up (to speak)."

While Aldridge said he is in support of a changing the county's rules in favor of public comment on each and every item of business, he knows that others are simply in favor of moving the public comment to the beginning of meetings, before votes are cast.

County Judge David Hudson is one of those.

"I recommended that we move it from the end of the meeting to the beginning of the meeting. I have drafted an ordinance to implement just that."

Hudson said he was not familiar with Fort Smith's procedure, though he said he would "defer to the judgment of the Quorum Court on what they want to do with that. It's not a major issue with me. I'll study how the city does that. I haven't done that at this point."

Aldridge said the vote on Hudson's ordinance will take place at the Court's regular Aug. 20 meeting.

"We'll definitely make a change," he said. "But what the change will be will depend on whether the judge (County Judge David Hudson) wants to do it and what the law calls for."

Either way, Aldridge said moving the public comment to a different place in the meeting is the right thing to do for constituents.

"I have had a couple of constituents who have brought it up and said by having it at the end of the meeting, it was rushed and they didn't have a chance to provide input."

P.A.M. Transportation Services Inc. returned to paydirt in the second quarter, posting net income of $2.682 million, or 31 cents a share. Net profits rose 186% from $934,791 earned in the second quarter of last year.

The earnings report was issued after the market closed on Friday (July 26).

The Tontitown-based carrier’s total revenues surpassed $104.4 million in the quarter, up 10% from the same period in 2012 and blowing past analysts’ predictions of $103 million.

"Second quarter operating income of $5.0 million was very satisfying and represents the highest quarterly operating income that we have reported since the fourth quarter of 2006,” said Daniel Cushman, president of the company.

He attributed the revenue growth to several factors, including fleet growth of 3.1%, improved utilization with a reduction in empty miles, and a 2.3% increase in the rate charged per mile. He said demand for P.A.M. services was relatively strong and steady through the second quarter with the exception of a couple of valuable “project lanes” that transitioned back to intermodal suppliers and away from trucks.

“However, our success in securing new business was strong enough in the quarter to replace these lost lanes and achieve year over year revenue growth,” he added.

P.A.M., like a number of other truckload carriers, benefited from a freight volume increase as the quarter progressed. After a sluggish April, overall freight trends were significantly better in June amid the truckload sector, according to analysts with Stephens Inc.

Stephens Inc. analyst Brad Delco noted that freight pricing in the quarter was fairly lackluster as shippers have been reluctant to increase rates ahead of hours-of-service regulations and sluggish freight demand in the early part half of the quarter. He said going forward carrier rates will need rates to cover 2% to 2.5% cost inflation headwinds on top of 1% to 3% utilization headwinds due to hours of service regulations

The improved earnings report came with a cautious tone from company management.

"As with most other carriers, our random freight division presents one of our greatest challenges. Due to the non-repetitive nature of the customers, routes, pickup and transit times, among other factors, we incur considerably more cost and driver dissatisfaction with this category of freight,” Cushion, noted in the release.

He said the company continues to transition away from random freight services, which lowered the impact it has on total operations.

“The percentage of freight serviced by our random freight division decreased from 45.2% of our total freight in the second quarter 2012 to 38.7% of our total freight in the second quarter 2013,” Cushman said. “We continuously seek to improve profitability through more disciplined choices, better planning, and more efficient execution.”

P.A.M. also benefited from better fuel efficiency in its newer fleet and an overall decreased in the cost of fuel in the quarter. The efficiency gains contributed to a reduction in fuel costs of approximately $700,000 for the second quarter 2013 as compared to the second quarter of 2012, the company said.

Cushman said the company continues to invest in updating its fleet because newer fleets provide for higher driver satisfaction, lower repair costs and greater fuel savings. The firm’s average age of its truck was 1.5 years at the end of the second quarter.

“Our current capital expenditures program is designed to maintain the 1.5 year average truck age and includes fleet growth of approximately 100 trucks. In addition, our program includes the replacement of 60 trailers each month for the remainder of 2013,” Cushion said.

He said the driver recruitment remains a challenge and continues to hinder the firm’s planned internal growth. Increased competition for professional drivers is coming from construction and manufacturing sectors which have picked up steam in the past year.

P.A.M. ended the quarter with 127 more drivers and 203 more owner operators than those at the end of the second quarter of 2012. However, Cushion said sustained intense competition for a dwindling pool of qualified drivers coupled with more stringent governmental regulations could make it difficult to recruit and retain qualified professional drivers.

Shares of P.A.M. Transportation Services Inc. rose 5.3% on the strong earnings announcement Friday (July 26). Shares closed at $11.30, up 57 cents in heavy volume for what is typically a thinly traded stock. More than 91,830 shares changes hands on Friday, the average daily volume is roughly 2,400 shares, according to Yahoo! Finance.

FINANCIALS (Quarter ending June 30, 2013)
Total Revenue
2013: $104.407 million
2012: $94.155 million

Operating Income
2013: $5 million
2012: $1.27 million

Net Income
2013: $4.415 million
2012: $1.561 million

Earnings Per Share
2013: 31 cents
2012: 11 cents

Daily Revenue Per Truck
2013: $651
2012: $607

Company-owned Trucks
2013: 1,471
2012: 1,617

Owner-Operator Trucks
2013: 321
2012: 122

The tourism industry was relatively consistent with respect to access, options and overall consumer behavior.

And then the Internet happened.

“The way people plan a trip is radically different. The way they research ... and how they book the room or the whole trip is all different, completely different, than what it was. It changed all aspects of the tourism industry,” said Maryl Koeth, executive director of the Van Buren Advertising and Promotion Commission.

And that’s not a bad thing, she said. It has forced owners of tourism and travel related companies to evolve and keep evolving. It has forced tourism officials to pay more attention to tourism and travel trends. And the Internet, the system that forced the changes, also helps tourism officials quickly adapt to ever-changing consumer preferences, Koeth said.

She’s seen the industry cycle for a few seasons. After working for a freight brokerage firm, Koeth began with the Van Buren A&P in 1990 shortly after Van Buren voters approved a 1% lodging tax and a 1% restaurant tax to launch the city’s tourism promotion and recruitment efforts. She’s been the A&P director more than 13 years.

Koeth is also active in statewide tourism efforts. She’s a board member with the Arkansas River Connection, is the incoming president of the Travel Council for the Arkansas Hospitality Association, and is active with the Arkansas Association of Convention and Visitors Bureaus.

VACATION SPENDING SHIFT
There is one thing about the industry that has emerged as a constant.

“The American worker is a unique creature. We tend to work harder, and we tend to work more hours ... but we will take a vacation. And when we do take a vacation the American worker is going to figure out how to do that no matter what the economy is doing. ... They figure out how to do that even if they have to do it cheaper than they did last year,” Koeth said.

Cheaper, unfortunately, has been the more common modus operandi in recent years, according to Koeth. She is hearing from those in the industry that travelers are eating fewer meals or are skipping the appetizers. Instead of a three-night stay, the traveler may cut back to just two nights.

“We’re going to go on that vacation, but we may buy fewer souvenirs, or we may stay a day or two shorter,” she said.

Koeth cites this shift in consumer behavior – shorter vacation times, and less spending – as a reason for declines in area hospitality tax collections.

Hospitality tax collections in Fort Smith and Van Buren are down for the first five months of 2013. Collections in Van Buren during the first five months of 2013 total $174,969, a slight decline of 0.77% from the $176,327 in the first quarter of 2012.

May collections were $36,898, down 1.2% from the $37,344 in May 2012. The city collects a 1% tax on lodging and a 1% prepared food tax.

“We’re happy, obviously, that they are still taking a vacation, but the downside to how tourists are spending is that it’s really been hard on our shops on Main Street,” Koeth explained.

‘NEVER STAYS THE SAME’
Dwelling on present difficulties is not something Koeth can afford. With data provided by Internet sources and more sophisticated tools now used in the industry, Koeth says she spends more of her time researching “where the tourism industry needs to be” in the next season.

“Tourism never stays the same. Ever. In any community. Never the same. It’s always evolving. It’s always changing,” Koeth said in a measured staccato rhythm to emphasize her point.

She said it’s still important to have a five-year plan or other forms of long-term strategies, but the plan better be flexible. For example, tourism research in the past few years suggests that travelers are more attracted to riverfront and open greenspace areas.

“What we are seeing is that more people are wanting to do more outdoor things,” Koeth said.

That traveler is also open to spending time and money visiting historic areas that may be off the beaten path. To reach that traveler, Koeth said she hopes to work with the University of Arkansas at Fort Smith and other partners to “keep developing our heritage tourism assets.” UAFS took the lead in restoring the historic Drennen-Scott house in Van Buren.

An aspect of the industry Koeth also watches is business travel. So far, she is hearing from hotel owners that business travel in the Van Buren area is good. But with an uncertain economy, the definition of “good” is also subject to change. Koeth says she closely watches the national trucking industry to gauge future economic health.

“Yes, it looks like our business travel is holding steady, but with any ripple in the economy, that’s where businesses will often cut back,” Koeth said.

Another industry dynamic is that tourism benefits don’t necessarily come from nearby facilities or events. Koeth said Crystal Bridges Museum of American Art in Bentonville has helped the Van Buren tourism economy. The anecdotes are many, Koeth says, of those who stop in Van Buren going to or coming from Crystal Bridges.

“It may be sitting in Bentonville, but it’s having an impact on our part of the state. It’s a world-class art museum just 70 miles away.”

Consumers continue to reach into their pockets and spend more for transportation, food, alcoholic beverages and their homes. But according to a new report from Mintel they aren’t spending as much as they believe.

The report studied spending habits from 2007 through 2012 and compared those with consumer attitudes about those purchases. Fiona O’Donnell, analyst with Mintel, said that while consumer expenditures are up, Americans retain a cautious approach toward purchasing and avoid conspicuous consumption.

“While conservative spending may be a result of lingering concerns over the health of the economy and a fear of debt — which affects consumers’ shopping behaviors and perception of how they make spending decisions -—  it is also likely that consumers’ attitudes have shifted,” she said. 

O’Donnell said consumers have been conditioned to seek bargains and now take pride in their ability to shave to cut costs and pay lower prices than retail.|

The study found that consumers think they are cutting back the most on alcoholic drinks away from home, followed by entertainment, and dining out. The study found that actual spending increased in each of these categories where consumers said they are spending less.

Consumer spending rose year-on-year to 2012 in the following categories:
Transportation 7%


Dining out 6%
Alcoholic beverages consumed at home 6%
Alcoholic away from home 6%


Home and garden 5%
Food at home 3%
Personal finance 1.3%

O’Donnell said consumers have come to expect a nearly never-ending cycle of sales, coupon offers, members-only discounts, and lower-priced product alternatives.

“Meanwhile, technological advancements of the past five years and mobile technology’s increasing penetration have made price comparisons and strategic shopping more accessible,” she said. “For these reasons, marketers should not expect a swing back to pre-recession impulse buying habits and spending on credit.”

How close can a person get to confirming their intention to run for an office without actually saying yes? Pretty darn close, it turns out. Just ask Lt. Gov. Mark Darr.

In an interview Wednesday (July 31), Darr confirmed that he not only has moved back to his hometown of Mansfield (Scott County), in the 4th Congressional District, but he would he making an announcement within the next two to three weeks about his political future.

Darr said Wednesday morning that the planned announcement would take place shortly after U.S. Rep. Tom Cotton, the Republican currently representing the 4th District, makes an announcement about his political future. (However, several media outlets reported after the Darr interview with The City Wire that Cotton would be entering the race against U.S. Sen. Mark Pryor, a Democrat. Democratic groups also late Wednesday morning issued statements criticizing Cotton’s entry in the Senate race. The City Wire is working to follow up with Darr.)

"I assume, everybody assumes, that he'll challenge Mark Pryor, but I don't have any inside information on that," Darr said.

Regarding his not yet-confirmed run for Congress, Darr said he's getting close to making it a done deal.

"I'm pretty sure I do (want to run). Obviously, anything can happen. So I'm keeping that fluid. But I believe that in the next two to three weeks, it'll be 100%, so I'm pretty sure of what I'm going to be doing. But with all of the people involved, I think it's best out of respect to other people that I keep that to myself until I'm ready to announce."

When Darr is ready to pull the trigger, he said he already has commitments from donors.

"Obviously, there's a long way to go on anything, but I've already got some firm commitments and I'll be talking to a lot more people today. I'm confident that I'll not only compete in the race that I run, but I'll win."

Darr has said previously that a campaign for the 4th was about a 75% likelihood for him, though the news on yesterday that he had moved his family from their home in Northwest Arkansas back to Mansfield brought attention to his political future.

Even though he has moved, Darr said it was not just about his probable run for Congress.

"Actually, where I'm moving is right across the street from my childhood home. I'm real excited about it, the kids growing up in the country instead of on a lot (in a subdivision). …I'm originally from the Fourth. For me, it's just moving home. I have family nearby in the area in Greenwood and a lot of high school friends. For me, it's just a support system and just a great place to raise kids."

Asked whether he is concerned about being labeled a political opportunist, the lieutenant governor brushed off what could become a label placed on other Arkansans, such as Hillary Clinton when she ran for U.S. Senate in New York.

"I'm not worried about it. If I were to run, that label's coming. If they're having to label me as a carpetbagger, they're desperate. You only target the person that's ahead of you. If they label me that, I'm a threat to them and I'm obviously ahead."

The only thing that has given Darr pause in his decision to likely run for the 4th District is that he may run against close friends in the Republican primary. Two of those friends are State Rep. Bruce Westerman, R-Hot Springs, and Beth Anne Rankin, who was the 2010 Republican nominee in the race for the Fourth District.

"They're both great people. And I'm sure there may be others out there. That happened last time. If the seat were to open up, I'm sure there would be candidates I'm not even aware of yet. No one wants to go through it, but I think it will make me a better candidate."

While an announcement is coming, Darr said no formal campaign team has yet been assembled.

"Obviously, no matter what I do, the first few weeks will focus on fundraising. I'm not focused on hiring staff. Instead, you stockpile and realize that it's a long election and save as much as you can until the end."

As for whether any national Republicans will involve themselves in the Fourth District race, Darr said he is not yet certain.

"I've spoken to them, basically just informal, nothing official, as far as what services do they offer, or what information do they want from me. Basically, that sort of thing. Just surface conversations. Nothing in depth. But I haven't let them know my plans. It's been a while, probably a month or so. But I haven't been in contact with them since."

Regardless of whether he has the support of the national party, Darr said he is ready to get to work campaigning for what could be his next job in government.

"I already represent the Fourth District. I've proven that the Fourth District is important. I'm from there, went to college there. Met my wife there. And as a Republican, it's our future. The Third District has been our stronghold, but I tell you the Fourth is going to be pretty even with it. The size of it, you're pretty much running a statewide race anyway. And I'm used to going it."

Duncan Baird and Will Bond ensured that not all the political news on Wednesday (July 31) was about U.S. Rep. Tom Cotton, R-Dardanelle, entering the U.S. Senate race and Arkansas Lt. Gov. Mark Darr (R) all about announcing his intent to run for Arkansas’ 4th Congressional District.

Rep. Duncan Baird, R-Lowell, announced Wednesday he would be a candidate for the Arkansas Treasurer’s office in the 2014 election. Baird is term-limited in his House post.

Martha Shoffner, a Democrat, resigned her elected position as Treasurer in mid-May after being arrested by federal authorities on charges of extortion. Gov. Mike Beebe (D) named Charles Robinson, the former director of the Division of Legislative Audit, to serve out the remainder of Shoffner’s term.

Baird said his campaign will focus on restoring public trust to the Treasurer’s office.

“As elected officials, the power and responsibility that we have comes from the citizens of the state. That public trust has been broken in the Treasurer’s office,” Baird said in a statement. “My primary focus as State Treasurer will be to restore trust to the office. I want the people of Arkansas to be able to look at the Treasurer’s office and have confidence that we’re working on behalf of them to do what’s best for the state.”

Baird serves as House Chairman of the Joint Budget Committee of the Arkansas General Assembly. He worked as a Series 7 licensed securities trader in the brokerage division of Arkansas’ largest bank and holds a degree in Finance and Accounting from the University of Arkansas.

“My degree in finance and accounting and my professional experience as a licensed securities trader have helped prepare me for this job,” Baird said, “Experience in the legislature, and the opportunity to be heavily involved in the budget process, will help me lead the office.”

On the Democratic side, Will Bond announced Wednesday he will step down as chairman of the Democratic Party of Arkansas. Gov. Mike Beebe (D) thanked Bond for his service and put his support behind Vincent Insalaco to succeed Bond as party chairman.
 
"I can not thank Will Bond enough for his countless hours of service to our state and believe Vincent Insalaco will demonstrate strong leadership as chair of the DPA just as his predecessors have done,” Beebe said in a statement. “The progress our state has made can only continue by electing responsible leaders, and Vincent Insalaco will work to elect strong leaders who will continue an agenda focused on jobs and education." 
 
Bond was elected party chairman in February 2011.

"After two and a half years serving as Chair in a volunteer capacity, it is time for new leadership and time for me to consider other opportunities to serve Arkansas,” Bond said in the statement. “I am excited to join with Governor Beebe in supporting Vincent Insalaco as the next chair of the Democratic Party of Arkansas.”
 
North Little Rock native Insalaco served as the president for Young Democrats of Arkansas in the early 80’s, and has worked on campaigns for local, state, and national office. He received the Ed Fry Democrat of the Year award this year for his many years of service to improve communities, mentor young Democrats, and elect strong leaders to office.
 
"I have always believed in the principles of the Democratic Party of Arkansas like fighting for hard-working Arkansas families,” Insalaco said. “I've worked to elect Arkansas Democrats - like Bill and Hillary Clinton, Mike Beebe, Mark Pryor, and Mike Ross - who have always put women, children, and seniors first.”
 
The next state committee meeting of The Democratic Party of Arkansas will be held Sept. 14, at the Holiday Inn & Convention Center in Springdale.

Congress has been focused on student loans, farm bills and immigration on Capitol Hill lately, but that’s about to change.

When Congress returns from its August recess, members will be forced to deal with two familiar, yet fickle foes: the debt ceiling and a government shutdown.

President Barack Obama is standing firm on his “no negotiations” stance regarding the debt ceiling. On the other hand, a majority of Republicans say any deal to raise the debt limit must include major spending cuts in order to ensure that – as U.S. Tom Cotton, R-Dardanelle, puts it, “we won’t be right back here again.”

“A debt-ceiling increase must come with real, concrete reforms to stop President Obama’s reckless deficit spending and Obamacare,” said Cotton, who is expected to announce next week that he’ll challenge U.S. Sen. Mark Pryor, D-Ark., in 2014.

The Treasury Department has not set a specific date as to when the U.S. will likely reach its borrowing cap, but estimates call for sometime after the Labor Day holiday.

DEBT CEILING HISTORY
A Congressional Research Service report, “The Debt Limit: History and Recent Increases,” notes that the debt limit has increased 10 times since 2001.

“Congress, aside from two measures noted above, has modified the debt limit 10 times since 2001, due to persistent deficits and additions to federal trust funds. Congress raised the limit in June 2002, May 2003, November 2004, March 2006, and September 2007. The 2007-2008 fiscal crisis and subsequent economic slowdown led to sharply higher deficits in recent years, which led to a series of debt limit increases,” noted report authors D. Andrew Austin and Mindy Levit in the May 22, 2013 report.

The debt limit has risen from $5.5 trillion in 1996 to $16.394 trillion at the end of the 2012 fiscal year, according to the report.

Austin and Levit conclude that recent debt limit discussions were different in that there was more of a focus on the sustainability of federal budget practices.

“Debate during the 2011 debt limit episode reflected a growing concern with the fiscal sustainability. Over the next decade, without major changes in federal policies, persistent and possibly growing deficits, along with the ongoing growth in the debt holdings of government accounts, would increase substantially the amount of federal debt.”

They also suggest that the upcoming debt limit debate is likely to be soon followed by another.

“Unless federal policies change, Congress would repeatedly face demands to raise the debt limit to accommodate the growing federal debt in order to provide the government with the means to meet its financial obligations.”

GOVERNMENT SHUTDOWN
On the government shutdown front, Democrats want to continue current funding levels, while Republicans want cuts. Eventually, Congress has to pass what’s known as a continuing resolution, which keeps the federal government funded, by Oct. 1 (the end of the fiscal year) or the federal government could be headed for a possible shutdown ... again.

These two issues will be key to 2014 success for both parties, especially for Republicans. Right now, they find themselves in a pretty good position for next year’s midterm elections, particularly in the House, where some experts expect to see the GOP expand its current 17-seat majority.

The Senate isn’t out of the realm of possibility either, though it will no doubt be a tougher road. Senate Republicans will need to steal 5 or 6 seats – dependent upon the outcome of New Jersey’s special Senate election – from Democrats to capture the majority. It’s doable, but then again, they only needed three in 2012 and ended up losing two.

But it’s also the GOP’s to lose.

CONSERVATIVE BLAME
Since the Tea Party’s 2010 emergence, conservatives have automatically been tied to every fiscal folly on Capitol Hill, fairly or unfairly. Yes, it takes two parties to tango, but Americans have a monetary migraine, and they’re blaming the team in red.

Democrats know it, and they stand to reap the benefits if all goes awry. Right now, Democrats would need a meltdown of epic proportions to gain back the majority in the House, but the ingredients are there, especially on the heels of the latest threat from a faction of Congressional Republicans who say they won’t vote for any budget deal that includes funding for Obamacare.

U.S. John Boozman, R-Ark., disagrees with that position.

“The President is not going to cave on his signature initiative,” said Boozman, who’s voted against Obamacare multiple times, calling it “terrible policy.”

“The idea of shutting down the government for an extended period of time to stop Obamacare is probably not an effective strategy,” Boozman added.

The first-term senator knows that now isn’t the time for an “all or nothing” approach, and that such a strategy could wind up backfiring on Republicans next year.
“These are very high stakes and this is a strategy that could effectively play right into the President’s hand,” added Boozman.

“A shutdown would be reckless, irresponsible, and would hurt our economy,” said Sen. Pryor, the state’s lone Democrat in the Congressional delegation. ”Congress needs to work together to make sure this doesn’t happen.”

“Talking about shutting down the government engages in a dangerous game of political chicken and is never in the best interest of the American people,” echoed U.S. Rep. Steve Womack, R-Rogers, a member of the House Appropriations Committee.

Over the next few weeks, Republicans must find the perfect balance. Unrealistic expectations are sure to irritate voters; however, backing down from a fight over spending undercuts the very reason they were sent to Washington in the first place.

One back-to-school ritual designed to boost consumption will occur this weekend starting Saturday (Aug. 3) and ending Sunday (Aug. 4), as consumers may take advantage of a statewide tax-free holiday.

Despite a growing number of states offering the break from sales taxes, there is data that suggests the holidays do not promote overall economic growth.

The National Retail Federal estimates families will spend an average $635 this year for clothing, shoes, supplies and equipment. In Rogers, state and local sales tax on a $635 purchase is roughly $60.32. In Fayetteville and Fort Smith the tax savings would be nearly $62, as those tax rates total 9.75%.

Those savings could go into a tank of gas, groceries or dinner out for the family. However, economists continue to ask if these holidays actually prompt shoppers to spend more or simply shift the timing of the purchases that would otherwise take place, to the detriment of pubic coffers.

A study conducted by the New York State Department of Taxation found the holiday prompted shoppers to delay purchases timed with the tax-free dates and did not foster impulse buying as once believed. Another study from the University of Michigan examined nine different sales tax holidays and found that the timed-purchases accounted for almost 90% of the sales recorded during the holiday period.

A 2010 study from the Federal Reserve in Chicago looked at how households responded to temporary tax manipulation. The study found that increased consumption was limited to children’s apparel, with spending on clothing and shoes rising 49% and 45%, respectively, and relative to what they normally buy.

The wealthier households (incomes over $70,000) increased their spending on children’s clothing purchased by 136%. Families with young children increased their spending on children’s clothing by 295%, according to the 2010 study.

POLITICAL GAME
Critics of the holiday have said tax manipulation allows the government to pick winners and losers.

Christopher Koopman, program manager at the Mercatus Center at George Mason University, recently noted in U.S. News & World Report that granting temporary tax-free status to particular items, provides favors to some firms and industries over others. He said these political efforts distort the market and influence consumers and retailers to make decisions for tax reasons, not economic ones.

Some states have expanded the scope of items allowed during the tax-free holiday. According to Pew Charitable Trusts, Louisiana has broadened the scope to $2,500 of exemptions for personal property per person, which includes guns, ammunition and other hunting supplies.

Lawmakers in Arkansas have kept the exemptions limited to clothing and footwear priced less than $100 per item, apparel accessories and equipment costing under $50 per item and school supplies and instructional materials. The holiday is limited to two days.

Two states bordering — Oklahoma and Missouri — allow the tax holiday to start on Aug. 2, a day sooner than Arkansas. Also in Missouri, the tax free savings is extended to computer software costing $350 or less and up to $3,500 spent on a computer system.

This year 17 states and Puerto Rico have declared a tax-hiatus for back-to-school. The issue is still being debated in the state of Massachusetts.

Pew reports the two-day tax holiday cost Massachusetts $20 million last year and a supplemental budget allocation was used to cover the loss. The state has held a tax-free weekend every year since 2004, with the exception of 2009 when it was halted because of the recession.

Matt Gardner, executive director of the Institute on Taxation and Economic Policy, a Washington, D.C., think tank, noted in the Pew report that the holidays don’t make economic sense. He said there is no clear evidence that sales tax holidays have a big impact on sales, and lawmakers are less inclined to highlight the loss of revenue to state treasuries. If the revenue is light, he said other charges will be raised or services reduced, so who really wins.


Sylvester Smith, state director of National Federation of Independent Business in Arkansas, takes a different stance.
 He said this weekend's sales-tax holiday will be a big help to small businesses struggling amid a soft economy.


“The sales-tax holiday is good for stores in general, but it really could make a big difference for small businesses,” Smith said. “The sales-tax holiday puts people in the mood to shop, and we’re hoping they buy at least some of their school clothes and supplies at small, locally-owned businesses, because when you support small business, you’re supporting your community.”

BACK TO COLLEGE

While economist and policy makers debate the potential impact from tax holidays, the National Retail Federation expects families will dole out $72.5 million for back-to-school and back-to-college items this year.


More than two-thirds of the spending is in the back-to-college category. The NRF said much like families with children in grades K-12, college students and their parents will trim their budgets this year as well, looking for ways to reuse what they have and spend only on what they need. 
They expect college students and their families will spend an average $837 on apparel, electronics, dorm furnishings and more, down from $907 last year. Total spending for back-to-college is expected to reach $45.8 billion.


“While spending on college is down from last year, it is still higher than what we saw in 2011, indicating that parents this year are simply purchasing only what their college-age children need,” said NRF President and CEO Matthew Shay.

“The back-to-college market continues to grow, with specialty, discount, department, office supply and even drug stores luring students and their parents with attractive deals on everything from microwavable food products to personal care items and of course, home furnishings. In such a competitive space, we expect the deals over the next few weeks to really turn some heads,” he said.

College Spending Breakdown 2013
$104.76, bedding, small refrigerators and microwaves
$104.44, food items
$203.28, electronics
$122.70, clothing
$65.60, shoes
$65.12, gift cards
$65.08, personal care items
$62.92, school supplies
$42.92, collegiate gear

Shopping Timeline 2013
29.8% began shopping at least two months before school.
34.5% begin three weeks to one month before school.
19.9% will begin one to two weeks before school.

The values of building permits issued in Fort Smith, Greenwood and Van Buren were a combined $14.515 million in July, up by more than $5 million from the same period last year and nearing the July 2011 values of $14.864 million.

The uptick in building permit values represents a 60.31% increase over July 2012. The increase is consistent with the numbers throughout the year from the three cities. Total permit values equal $107.017 million for the first seven months of 2013, an increase of 41.5% compared to the $75.627 million during the same seven months in 2012.

FORT SMITH
During July, 156 permits were issued at a value of $13.82 million. Construction remains strong in the residential sector, with 97 of the permits relating to home construction or remodeling.

Comparing July 2013 to July 2012, Fort Smith saw less permits issued, though the collective value was 97.54% higher than the $6.996 million issued last year. More than $3.4 million of that was tied to an expansion at Graphic Packaging at Chaffee Crossing.

GREENWOOD
Just like last month, five permits were issued in Greenwood, though the collective value of $443,920 was 69.57% lower than the $1.459 million in permits issued in June.

Compared to July 2012, Greenwood's numbers were still lower. Three permits were issued for a total valuation of $758,795.

VAN BUREN
Van Buren had the smallest valuation of the three cities, bringing in only 28 projects worth $251,000, down 80.68% from July 2012.

While the permit for the new Van Buren Fire Department dominated June's valuation report, a single home valued at $185,000 dominated July's report, with the remainder being small projects instead of new home or commercial construction.

2012 RECAP
Combined values in the three cities during 2012 were $157.32 million, compared to $201.079 million during 2011. The 2012 value is above the $149 million in 2010, but below the $164 million during 2009.

Fort Smith closed 2012 with the largest share of valuations, logging $136.428 million (a one-year decline from $179.288 million of about 23.9%), while Van Buren was the next largest with $12.282 million (a one-year decrease from $12.39 million of approximately 0.87%). Greenwood posted an additional $8.609 million, which was down slightly from last year’s $9.461 million (down about 9%).

The 2012 figures were compared against a $28.5 million permit for the construction of a Mitsubishi wind-turbine assembly plant at Chaffee Crossing. The plant has been mothballed by the company. Even without that permit, the Fort Smith metro area lagged when compared to 2011 showing a decrease of around 8.8%.

Residents who have been going through cinnamon roll withdrawals will not have to wait much longer as Ryan Kirk, manager of Calico County, announced today (Aug. 1) that the restaurant would re-open Aug. 6, a little more than eight months after a kitchen fire caused hundreds of thousands of dollars in damages to the legendary Fort Smith eatery, forcing its temporary closure.

During the closure, restaurant regulars and casual diners alike have shown an outpouring of love to the restaurant that has been a staple of the Fort Smith food scene since it opened in 1984 and was made world famous after a visit from television host Oprah Winfrey and her gal pal Gayle King in June 2006.

Kirk said customers have offered to paint, clean up, move furniture and donate memorabilia in order to get the store restaurant open again after spending an estimated $840,000 to not only gut and re-build the restaurant, but to furnish it with tables, chairs, cash registers and kitchen equipment.

"We even had members of the community calling us, asking if they could help," he said. "It was really telling of our community and the kind of people that live in Fort Smith. We didn't realize, we knew that we were a staple of Fort Smith, but we didn't really realize, you know, how much the community backed us. The amount of support that we've gotten from everyone via Facebook, e-mails, phone calls, has just been tremendous."

As a way for the restaurant to say thank you to the community, Kirk said Calico County is hosting two premier nights that will benefit non-profits in the area.

"We haven't done anything like that before, but again we were just so impressed with the amount of support we got from the community, we felt like there was no better way to re-open than to give back some of the support that we had received."

The events, which will be held on Sunday, Aug. 4, and Monday, Aug. 5, will raise money for the Community Services Clearing House, Good Samaritan Clinic and Girls Inc. of Fort Smith.

Amanda Daniels, executive director of the local Girls Inc. chapter, said she was taken aback when she got the call from Calico County.

"Of course, we were very excited when they reached out to us to ask if we were interested," she said. "And of course, I didn't hesitate. I thought it was a great opportunity. I know everyone loves Calico County and is anxiously awaiting their re-opening, just as my family has been."

The tickets, which Daniels said cost $60, purchase four meals and four drinks. Kirk added that all of the profits from the premier nights will benefit the three chosen charities.

In addition to the tickets, which Daniels said have been selling at breakneck speed, customers are also able to purchase raffle tickets for a sweet, warm prize, according to Kirk.

"We're also selling raffle tickets for $1 apiece. The winner of that raffle will receive the first dozen cinnamon rolls on grand opening day (Aug. 6). And again all of that money goes to the charities as well," Kirk said.

For customers not certain whether their favorite waiter or waitress will still be around to serve them, Kirk said there was no need to worry.

"Yes, (insurance) covered (the cost of re-building) and covered the cost of employees' wages throughout the time that we've been down, so we were pretty happy about that. We were definitely worried right before it happened because it was right before the holidays, but fortunately our policy covered everyone."

Some well-known memorabilia (at least well-known to regulars) was salvaged from the fire and can be seen on the walls. Those elements, along with a nearly identical layout as before the fire, will make the restaurant feel almost exactly as it did before the fateful night on Nov. 25.

An argument could be made that the layout and memorabilia were far from the most treasured items to be salvaged and be seeing a comeback next week. But fear not, Kirk said, for the store's treasured recipes were found safely stowed away in a lockbox, meaning favorites like Calico County's distinctive pigs in a blanket and other recipes will make their triumphant return bright and early at 6:30 a.m. on Sunday.

And should the worst happen again and the recipes get lost to a fire or tornado, Kirk said there is now no need to worry.

"We have digital copies now, yes. ... We do have backups of them now and even if had lost the recipes, we have employees that have been here for 20 plus years that know them by heart. So we would have been able to salvage them, but we did save the physical copies."

Asked if he was ready for what is sure to be lines of customers waiting to get into the restaurant and fulfill eight months of cravings, Kirk said he was ready.

"It's going to be pretty epic, but we're ready."

A state liquor law in Arkansas that limits liquor store permits to one per person and forbids franchising or multiple minority ownership interests could be overturned by a federal court. A lawsuit filed in the U.S. District Court in Little Rock seeks to level the playing field among liquor store operators.  

If overturned the law could have statewide implications because as it would reverse the protection it gives to a few owners such as Jim Phillips of the Springdale Liquor Association, which are exempt from the law because of a “grandfather clause."

Gild Holdings and Steven Cherry of Bentonville filed suit against the state’s Alcoholic Beverage Control Division in May claiming the law as it stands “substantially interferes” with interstate commerce and violates the “Commerce Clause of the U.S. Constitution.”

Cherry sought to open a Macadoodles store in Bentonville, which would have been a franchise issued by Gild Holdings, who owns the trademark and operates stores in Springdale and Jane, Mo. The lawsuit states that the ABC denied Cherry's application for a liquor store permit because the proposed store was to be a Macadoodles franchise, which state law prohibits.

The complaint also states that the law passed in 2011 and interpreted by the ABC “unreasonably restrains and interferes with commerce” as it prohibits any person, firm or corporation from doing business with or receiving benefits from more than one retail liquor store, including franchises.

Critics of the law agree that it was written in way that allowed a few players to operate multiple stores and the criteria used to determine the exemption was customized for a select few. For example the 2011 law gives an exemption to any company that was active on July 19, 1971 and help more than one permit as of Aug. 13, 1993.

The state recently asked the federal court to dismiss Gild’s lawsuit as the plaintiffs failed to state a claim.

The plaintiff’s council, Jim Lyons, filed a 26-page response to the Motion to Dismiss on July 26. Lyons said he did not have an estimate for how long it might take this case to play out, if they are granted the right to proceed. Neither side will comment on pending litigation and the last filing on the case docket as of Thursday (Aug. 1) was the July 26 response filed by Lyons on behalf of the plaintiffs, urging the court not to dismiss.

Rep. Dan Douglas, R-Bentonville, said state liquor laws are a “major can of worms” for lawmakers who very seldom want to tamper with the status quo. He proposed a bill earlier this year he hoped would expand the law to allow franchising, but it died in committee.

“In retrospect, the bill as it was written did not offer a broad enough scope to get the support it needed,” he said. “Mom and pop distributors around the state, particularly in smaller areas, tend to support their legislators, who then have a hard time re-evaluating the liquor law.”

Douglas and other insiders agree that some mom-and-pop operators don’t really want the store limit lifted because they fear larger retailers will could corner the market if they are also allowed to expand their reach. The law already gives retailers, large and small, unlimited permits to sell beer and wine, but that competition is not available for liquor, according to Douglas.

“Alcohol is alcohol and free enterprise is free enterprise, but right now it’s not a level playing field. The current law limits free enterprise for some people. But if the law gets changed, I think it will have to be in federal court,” Douglas said.

He said it doesn’t make sense that a dad who owns a liquor store can’t help one of his adult children get started in a like venture of their own with a shared interest, but that’s the law.

Wal-Mart has made no secret that it supports a level playing field in the business it conducts around the globe and at home. The retailer did not respond to a request for comment on the state liquor law or the pending ligation. But Wal-Mart is bound to the 2011 law restrictions and has just one liquor store permit in Arkansas — Sam’s Club in Fayetteville.

When Benton County was voted “wet” in November of last year much of the financial support in the initiative was generated by Steuart and Tom Walton, grandsons of Wal-Mart founders Sam and Helen. Wal-Mart and numerous other retailers from Casey’s to Harp’s took advantage of the county’s “wet” status and got the necessary permits to sell beer and wine.

Benton County was granted up to 55 liquor store permits following the election. To date, 39 have been awarded. Robert McCurry of Bentonville was one of 15 lottery winners to have their permit application denied because he too, planned to open a Macadoodle's franchise.

Wal-Mart Stores Inc. wants to be known as solution provider, not just a destination for socks and bananas, which is likely why it continues delve into entertainment media.

It’s been more than three years since Wal-Mart purchased Vudu, a video-streaming service based in Silicon Valley, and while the retailer does not breakout sales from its services, analysts said Vudu, like most of the other players in the space, is gaining subscribers.

Target Corp. announced in May that it was testing a video on-demand in a service called Target Ticket with its employees, with instant access to 15,000 titles, new releases and next-day television programs.

A Target spokeswoman said in May, “During this phase, we are gathering valuable information that will help shape future plans. We will share additional details when they become available.”

Unlike Target and Amazon, Wal-Mart’s video streaming business is not tied to its namesake brand and Vudu maintains a separate website from Walmart.com.

Revenue from streaming and downloading services in the U.S. are expected to top $4.5 billion this year, according to Juniper Research and it’s clear that brick and mortar retailers want some of that share, given their competitor Amazon is well ahead of the curve.


Insight Corp. said the market has grown at a compounded rate of 29% since 2010 as consumers have illustrated their willingness to pay for content going back to the success of iTunes and the 29 million subscribers that Netflix has garnered.


Carol Spieckerman, CEO of New Market Builders in Bentonville, said being in the streaming space gives the mammoth retailers some leverage when negotiating exclusive release rights.


“Since Wal-Mart became a player in licensing Disney, several other brand houses have hung a shingle in Bentonville to be near the retailer’s home base,” she said.


Wal-Mart’s entertainment endeavors are part of the journey the retailer is taking to accomplish other things like exclusive releases and digital data gathering and analysis, according to Spieckerman.


Retail consultant Jason Long with Shift Marketing Group, said brick and mortar retailers are likely delving into streaming media as a defensive strategy focused on regaining lost revenue and blunting Amazon.
 
“Think about what could happen if Wal-Mart didn’t get into streaming, they cedes eyeballs and engagement opportunities to Amazon and others, and they would be out of the DVD movie business in 3-5 years, also losing leverage with major movie studios,” Long said.


Wal-Mart said in June that over the past two years, consumers have made Wal-Mart a destination for TV series on video purchases, especially during the first quarter whether in-store and streaming through Vudu.


CROSS MERCHANDISING

Long said if consumers had to go elsewhere to find the DVDs they want, that studios who cater to the retailers today would have less incentive to do so.


He said popular releases also give Wal-Mart the opportunity to cross-merchandise that could led to incremental sales.



During a Wal-Mart Store Tour in June, company officials told the media that one of the most popular brands in the store was anything linked to the popular cable series Duck Dynasty.  


It just so happens the No. 2 and No. 3 DVDs sold by Wal-Mart in the first quarter were Duck Dynasty Series 1 and 2.
 Duncan McNaughton, chief merchandising officer for Walmart U.S., said the Duck Dynasty tee shirts were the best selling in that category for men, women and boys. From lunch boxes to band aids the Duck Dynasty brand is a big seller at Wal-Mart, so it’s no coincidence the DVD sales were so high.


Long said the retailer also had a recent tie-in with the Superman movie launch, which in streaming the movie, you might also want to purchase a tee shirt or action figure.


STAYING RELEVANT

Analysts said Wal-Mart and other retailers increasingly need to provide streaming media so they don’t lose their edge in the electronics category.


Long said as a major player in the device space, by owning Vudu they can ensure the devices they sell are wired with that service.


Spieckerman said Wal-Mart continues to do a great job taking their customers where they want them to go, which is quite different from meeting them where they are.


She said Vudu is just one important entertainment vertical for Wal-Mart, but tying that to exclusive releases and licensing deals adds more layers of opportunity to drive revenue and brand recognition to a demographic who may or may not shop a physical store.


Long added that like Amazon Prime customers, consumers who spend more on electronics and media streaming tend to shop more frequently and may represent a higher income demographic over Wal-Mart's core customer.

“Even though Netflix, Apple, Hulu Plus and Amazon Prime own streaming right now, there’s a place for a trusted retail brand to take share in this category in the years ahead. Especially with Vudu’s competitive advantage of converting DVDs to digital,” Long said.


He said Wal-Mart and other retailers largely sat by as Apple co-opted their revenues derived from music.  


“These retailers are bound and determined not to let that happen again with streaming video,” he added.


Long wouldn’t be surprised to see Wal-Mart make a larger acquisition in the fragmented streaming sector if they are to enjoy a larger slice of the pie.
 

A recent report by an auto industry organization says that fuel efficiency standards in new cars are at their highest numbers in years, but that is not necessarily translating into a change in local consumer preference for new car sales.

According to a report released today (Aug. 5) by WardsAuto, 2012 models reached an average fuel efficiency of 24 miles per gallon, the highest ever previously reported, driven in part by new technologies and consumer buying standards, the company said in a press release.

But Larry Throckmorton, new car sales manager at Toyota of Northwest Arkansas in Rogers, said fuel efficiency only drives car sales at certain times for his dealership.

"When gas prices rise for whatever reason, if they peak close to $4 per gallon, the trucks and SUVs go into a standstill and then we go into a mad dash for the hybrids," he said. "When prices come back down, people go back to the SUVs again. It's been a roller coaster the last couple of years."

Throckmorton characterized the ups and downs as cyclical, which has reflected the U.S. gasoline market during the last decade, according to the U.S. Energy Information Administration. The agency reported that a price for a gallon of regular unleaded was $3.49/gallon today, versus $3.61/gallon in 2012. In 2010, the price was only $2.78/gallon, though the price during 2008 was $3.24/gallon.

MARKET DIFFERENCES
Bradford Randall, general manager of Randall Ford in Fort Smith, said while gas prices may influence sales of new fuel efficient vehicles in Northwest Arkansas, it is not something he has seen in the Fort Smith market.

"On the fuel efficiency side of it, I'm not sure that that's the main motivation for vehicles right now. We thought that hybrids and electrics would take off more in the area, but they just haven't. In Northwest Arkansas and Central Arkansas, they are more likely to push hybrid, but for this area we haven't seen fuel efficiency as the driving force."

In Fort Smith, the biggest driver, Randall said, has been aging vehicles.

"The average age of vehicles (being traded in) is 11.4 years. That's been the big driver."

But he said industry watchers should not be fooled by the number of people moving from an older vehicle to a newer one. It has not translated into the sale of more new cars.

USED CARS ARE POPULAR
"Used cars are huge right now. People can get them in good condition with low miles for a fraction of (the cost of) new vehicles. Now the warrantees aren't as good as new vehicles, but they are in it for the price now. Used vehicles are the way to go right now. That's primarily what's selling,” Randall explained.

Sales of used cars have helped drive Randall Ford to its strongest sales for the first seven months of the year since 2007, he said. The rise in customer traffic that has pushed the company to the best sales numbers in years did not really begin until April, Randall added.

And while hybrid and electric vehicles have been weak sellers for Randall, he did say non-hybrid fuel efficient vehicles are doing remarkably well on the used car lot.

"Small fuel efficient vehicles don't stay on our lot any time at all. Small trucks, like the Ranger or Chevy Colorado, just move really quickly."

In order to keep up with demand, Randall has started to explore new ways to to obtain used cars and trucks in addition to the traditional methods the company has depended on for decades.

"For acquisition, we are getting about 20% of our vehicles from auctions. The rest come from people selling their cars in the paper, Craigslist and new vehicle trades. But it's still a challenge to get some new vehicles. And there's still some bad vehicles (on the road that are leftover) from Hurricane Sandy."

In order to keep damaged vehicles out of the hands of his customers, Randall said each car undergoes a thorough inspection and a CarFax report is obtained. Anything that has a red flag, he said, keeps the car from being acquired and then re-sold to his customers.

TRUCK SALES REMAIN STEADY
If there's been one surprise for Randall, it is that sales of regular-sized trucks have continued to hold steady, even with the uptick in sales of used, fuel efficient vehicles.

"The gas guzzlers are staying (on the lot longer) than anything, like Hummers. But not trucks. There is still a great demand for trucks."

Throckmorton said the reason truck sales have continued to stay high was because of what trucks can provide consumers.

"Trucks serve more of a purpose than fuel efficiency. If you can't afford a truck or that is a major concern, then buy something else. But we as Americans want a big vehicle and we'll buy it and pay for extra gas. We all want something that is more fuel efficient. And it will happen in time. But think of it this way - a gallon of gas is still cheaper than a gallon of water," he said. "You go into the Quick Mart and a small 16 ounce bottle of water is a dollar. So you buy two one liter bottles of water, you're spending $4."

The city of Fort Smith's system of checks and balances will be put to work tomorrow night (Aug. 6) as the Board of Directors hear an appeal to the city's planning commission during their regularly scheduled meeting.

At issue is denial of a conditional use request for an auto and vehicle impoundment and holding yard located at 1302 S. Zero St. The planning commission had a tie vote of 4-4 on the request at its June 17 meeting, with commissioners Brandon Cox, Thomas Howard, Richard Spearman and Don Keesee voting no. (There is a vacant seat on the commission due to the recent resignation of John Huffman.) Voting for the conditional request were Robert Cooper Jr., Vicki Newton, Jennifer Parks, and Marshall Sharpe.

According to a memo from the city's planning department, the land is zoned as "commercial heavy (C-5)," which can consist of the following uses - general commercial, office, research and light industrial, mixed use residential and mixed use employment.

Josh Niles, the owner of Absolute Towing and Recovery, said his request was denied due to biases on the commission.

"It was for multiple reasons. But the whole deal is they just didn't want us there," he said.

The planning commission had said Niles would likely have been able to move his company from its location on Jenny Lind to the new location on Zero Street had he met the following conditions, according to a memo from Chairman Marshall Sharpe of the planning commission:
• All construction must be built in accordance with the submitted development plan and with any Planning Commission amendments;
• The proposed fence gate at the driveway entrance shall be offset from the street to avoid vehicles stopping/standing within the street right-of-way;
• Fences placed at or in proximity to the right-of-way line must not create a sight obstruction for vehicles exiting the site;
• The proposed fence shall be a six (6) foot privacy fence constructed out of cedar and maintained;
• All site lighting shall comply with the lighting requirements of the UDO (Unified Development Ordinance) - Section 27-602-5;
• All signage shall comply with the UDO General Sign Regulations and Permitted signs in open, commercial and industrial zones - Section 27-704-5 and Section 27-704-3;
• Landscaping shall be required and maintained in accordance with the UDO along the Zero Street frontage; and
• Removal of all broken plastic sign pieces.

Niles said some of the demands were beyond his control.

"They wanted me to take down a sign at 1304, which was on property not even associated with (what came before the commission). Why take down a sign at 1304 when it has nothing to do with 1302? And the whole landscaping thing, I said I didn't think it was necessary. I didn't say I wouldn't do it."

Wally Bailey, director of city planning, said the reason the signs were brought up is because Niles plans to run his business from the adjoining property. He said what was asked of Niles by the commission shouldn't be that difficult to comply with.

"Put in a little landscaping, (take care of) the old sign that is on the property where his office will be. I don't know why he wasn't willing to make any concession to meet them halfway."

Niles said the commission is simply trying to make it impossible for him to relocate his business from a residential area to an industrial area.

"They are just trying to make this harder and harder and harder. I was already putting in $10,000 for the fence, but they wanted to put up every obstacle so I couldn't get there. Every business that's there (near 1302 South Zero Street) has deep pockets and just because I don't have deep pockets, they don't want me there. The zoning lets a wrecker service be there. If it allows me to be there and it doesn't hurt the city, so why shouldn't I be there?"

City Administrator Ray Gosack said it was rare to have an appeal come before the Board, adding that it has been at least two years since the last appeal came before the city's directors.

"They're usually supportive of the planning commission, but not always," he said.

He said the Board would be looking for very specific causes to overturn the commission's decision.

"The things they'll look for is is this use consistent with other development in the area and what special conditions, if any, would need to be placed on this development to make it compatible (with the area)," Gosack said.

The city's planning department will have a chance to make their presentation affirming the commission's tied vote while Niles will also be given a chance to speak, Gosack said. Members the public will be able to speak, as well, before the Board discusses and votes on the appeal.

Bailey said he was confident the decision made by the commission on June 17 was the right one.

"There have been some things in the past that I've not felt comfortable with, but I feel comfortable with what the commission has done based on what I just told you. I've got a feeling it's a conditional use issue. It's up to them (the Board) if it's right for the location or not right for the location."

Niles said if the Board does not rule in his favor, he is ready to take it to the courts.

"If they do not rule in my favor, I have every intention to litigate. I will take it to court," he said. "I am confident we can win our case. Once again, the city state's that my business, they state that it can be there (based on current zoning). There's nothing that states I can't be there except four (commission) members who don't want me there. It's ridiculous."

An attorney general's opinion released late today (Aug. 5) regarding the use of construction managers at-risk on county projects has left more questions than answers.

Sen. Jake Files, R-Fort Smith, had requested the opinion in June at the request of Sebastian County Justice of the Peace Danny Aldridge, who had questioned whether the county was legally able to use a construction manager at-risk to construct the Ben Geren Aquatics Center, which is a joint project being developed with the city of Fort Smith.

Files asked, "In light of [Gatzke v. Weiss, 375 Ark. 207, 289 S.W.3d 455 (2008)], please offer me an opinion on how construction management contracts are able to be entered into by county government without advertising and selecting on lowest bid or if they are even able to be entered into at all.

"If your opinion is that county government cannot enter into a construction management agreement, what is the remedy for those counties who are entering into those contracts illegally at this time, and what is the remedy for those that have been entered into previously and completed?"

In response, Deputy Attorney General Elisabeth Walker issued an opinion that apparently indicates Sebastian County may use the construction management process to build the water park.

"In response to your first question, therefore, counties are not only authorized, but are required to contract for 'construction management' services without competitive bidding. If a county wishes to procure these professional services, in other words, it must do so by following the procedures outlined in A.C.A. §§ 19-11-802–805, which involve evaluating the entity’s qualifications and negotiating a contract It bears noting, however (as the enclosed opinions also point out), that both the so-called 'public works law' and the Arkansas Constitution require competitive bidding on the construction work. The question whether a county has observed these laws in connection with any particular contract is one of fact, and thus outside the scope of an opinion from this office.

"A response to your second question is unnecessary in light of the foregoing."

Files and County Judge David Hudson were unavailable for comment regarding the opinion. However, Matt Campbell, a former researcher and staff attorney for the Arkansas Supreme Court and an attorney at Pinnacle Law Firm in Little Rock, said it appears from his understanding of the opinion that Sebastian County's use of a construction manager is legal.

"It doesn't tell you it's illegal. Under A.C.A. §§ 19-11-802–805, that whole subsection, the county in theory would have to do a no-bid contract and follow the procedures in that law. But then they throw in there other things that might apply, but that's outside the scope of we're doing here. Based on this opinion, it is not (illegal)."

What may help Sebastian County stay within the letter of the law, Campbell said, was the fact that the county is working through an interlocal agreement with the city of Fort Smith to fund and operate the facility.

"As far as working with the city, that's sort of my guess on how they might be getting around it. If it was just a county project, it would be a bit more straight forward on the constitutional grounds."

Even still, he said the entire opinion may have come out differently had Files asked the question differently.

"Maybe. That's probably why the opinion just says that the rest of it is too fact-intensive to give an opinion on. Had Files written the question much more specific to that project with some details, then they might have been able to force an answer one way or another."

Reached for comment late today, Aldridge said the opinion was too confusing for him to provide a statement on its meaning at this time, but he did say he feels confident he has pushed Hudson and the rest of the Sebastian County Quorum Court toward more transparency.

"The judge had agreed to have a sealed bidding process (for the various project segments), even if we use a construction manager, to be opened in public and adhere to the guidelines that are called for with sealed bids."

U.S. Rep. Tom Cotton, R-Dardanelle, has not even formally announced he will run for the U.S. Senate, but that has not stopped Democrats and his likely opponent from attacking his record and a Senate campaign that Cotton is likely to announce on Tuesday (Aug. 6).

Sen. Mark Pryor (D) is already primed to hit the airwaves with a new 60-second TV ad that raises questions about Cotton’s voting record. Cotton is poised to announce his Senate run on Tuesday at a community BBQ dinner in his hometown of Dardanelle. The race will be the most high-profile campaign in Arkansas in 2014 and will be closely watched by national partisans as the seat could determine the balance of power in the U.S. Senate.

Pryor’s new TV ad (see ad below) hits Cotton for running for higher office “just 7 months after being sworn into office,” while a graphic flashes “blind ambition.” The ad cites votes by Cotton against a version of a national Farm Bill, claims he wants to “turn Medicare into a voucher system,” and is pushing to privatize Social Security.

The ad also says Cotton voted for higher interest rates on student loans, against the violence against women act and against equal pay, and to allow insurance companies to deny coverage for pre-existing conditions, which was a fundamental component of the Affordable Care Act.

“Tom Cotton should be running – not for higher office – but running from his own record of hurting the people of Arkansas,” the narrator says. The ad is paid for by Mark Pryor for Senate.

TELEVISION PUSH
Politico reports that the Pryor campaign has purchased a $45,000 TV ad buy in the Little Rock, Fort Smith and Jonesboro media markets. It begins airing Monday night (Aug. 5).

Pryor campaign manager Jeff Weaver tells Politico, “We hope to frame the race early. People don’t know enough about Tom Cotton, I mean, he’s only been in Congress a few days. We felt that it is important let Arkansans see the real Tom Cotton. The ad will highlight what Tom Cotton has done in the short amount of time he has been in Washington.”

Cotton’s political director, Rep. John Burris, tells Talk Business that Pryor should spend his money defending his own record.

“It’s a desperate attempt by the Senator to distract the voters from his agreeing with Barack Obama 90% of the time. He should spend his money instead explaining to the voters of Arkansas why he voted for Obamacare, amnesty for illegals, and the failed stimulus program,” said Burris.

‘RECKLESS’ COTTON
Also on Monday, state Democrats launched a website, MeetTomCotton.com, that claims Cotton (R) is “too reckless for Arkansas.”

The web site, paid for by the Democratic Party of Arkansas, highlights nine issue areas connected to Cotton’s voting record and political positions. The areas include: Medicare, Social Security, women’s rights, student loans, the farm bill, disaster relief, health care, military strategy, and sanctions involving Iran.

“In seven short months, Tom Cotton has shown nothing but blind ambition as Arkansas’s newest congressman. After just 213 days in office, he’s decided to abandon the citizens of the 4th District to pursue a higher office,” said Democratic Party of Arkansas spokesperson Candace Martin.

“What has he done in those precious few days in office? Quite a bit. But none of it was good for Arkansas. He followed his blind ambition and own agenda, even alienating his fellow Republicans while voting with Washington special interests instead of listening to Arkansas’s needs. Just look at his voting record. At MeetTomCotton.com you can learn about his reckless agenda and how it has endangered the future of Arkansas families and seniors, women and students,” she added.

REPUBLICAN COUNTER
In a preview of what the remaining 15 months of the campaign may hold, Republicans were quick to counter.

“Mark Pryor is acting like a liberal politician desperate to hold onto power. After polling last week showed Pryor had the support of only 37% of voters, he has repeatedly launched negative attacks against Congressman Tom Cotton in a cynical effort to distract from his record of rubber-stamping the Obama agenda in Washington,” said David Ray, communications director for the Arkansas GOP.

“These false attacks may keep Washington liberals like Mark Pryor entertained, but they don’t do a single thing to alleviate the job losses brought on by Pryor’s votes for Obamacare, the failed stimulus, and new taxes he has burdened Arkansas’ economy with,” Ray said.

The communications wars are certain to become more heated. Monday (Aug. 5) was the first day for Pryor’s new campaign press secretary, Amy Schlessing.

Schlessing, a former war reporter for the Arkansas Democrat-Gazette, has been working as an aide in Pryor’s office on military affairs. She will be the official press contact for the campaign going forward and is no longer on his Senate staff payroll.

It is no secret that lending institutions have been forced to tighten requirements since the financial crisis of 2008. But a little-discussed financing mechanism known as owner financing, or seller financing, is a cause for concern according to a seller and a mortgage originator in the region.

This form of financing has the seller carrying all or a portion of the financing. The buyer and the seller agree on the interest rate, monthly payment amount, insurance obligations and other terms. The agreement is typically noted in public records to protect the parties.

It is something Fort Smith home owner Greg Pair Jr. has been hearing about a lot since he put his home on the market four months ago.

"We've had one offer, but it fell through because of financing. They could not get the financing (to purchase the home)," he said. "We've also had at least four or five calls to see if we could do owner financing because of the inability to get financing at the bank."

Pair and his wife Jamie were not comfortable with selling their home through owner financing.

"Owner financing would mean we would still have the loan on the house. It's essentially the same as a rent-to-own option. It would be paying us the monthly payment to pay off the loan. In turn, it would hurt us because we couldn't carry that loan plus the loan on the new house."

Walt Fenton, a mortgage originator at First Security Bank in Rogers, said Pair's views on owner financing were correct. According to Fenton, term owner or seller financing is not even an accurate depiction of the financial transaction taking place.

"He's doing a contract for deed where the contract remains in his name," Fenton said. "Owner financing is really where they own the property free and clear and the buyer puts down 20%. We'd count that whole mortgage against him unless he can prove that he's been receiving the payments for at least 12 months."

The risks associated with doing owner financing are many, Fenton said, adding that anyone who is asked to do owner financing, as Pair has been, should think long and hard about why they would need an alternative financing solution.

"If they're having trouble with their credit, why would I want to carry a note on them," he asked. "If they are a poor credit risk to a bank, why would the seller want to take that risk?"

While signs have been popping up across the Fort Smith region with messages about owner financing and more people have started talking about it, Long and Fenton say it is still rare in the Northwest Arkansas regions. Long, who said he has not yet sold a home through owner financing, said in his opinion, it would likely only be a good option for certain types of properties.

"Owner financing, I think, would be more (suitable) for mobiles (mobile homes) which are hard to finance or specific properties that are hard to finance for whatever reason. And I've heard of lease-to-buy, that's sort of owner financing. But I just don't know. I just haven't run across it much."

Fenton said all individuals who may be in the market for a home at any point in the near future need to get used to the more difficult lending procedures and be prepared for the rare, but still possible, rejection for a loan.

"We're back to the old days where their debt to income ratios should not be more than 28% of monthly income. We don't want that other debt to exceed 41% unless there are great compensating factors - high credit scores, long term job security," he said. "You need money, you need a job, you need good credit. It's back to the good old days."

Should a prospective buyer be denied, Fenton said it is not the end of the world and they don't necessarily have to resort to alternative financing options.

"We do see some people with poor credit and we do some counseling with them. They may have to come back in six months, a year or two years. But in the grand scheme of things, two years goes by relatively quickly."

If a seller does choose to extend financing themselves to a buyer, Century 21 advises that the seller take measures to fully protect themselves.

"You should run a full credit check on the borrower, require hazard insurance on the property and include a due-on-sale clause. There also are financing, disclosure and repayment-term requirements that need to be met. Again, it is wise to consult an attorney when considering this type of transaction."

As for Pair, he is hoping his home sells quickly through traditional financing so he and his family can purchase their next home.

"The bad part for us is we wouldn't be able to purchase the other house, we couldn't officially go through on the house. We're (in a contract to purchase our next home) contingent on selling our (current) house. We need the equity in our house to pay the down payment on the new house."