Tontitown-based P.A.M. Transportation Services is off to a record start in 2015 reporting net profits of $5.369 million, rallying 296% from the $1.356 million net income reported in the first quarter of 2014.

On Wednesday (April 22) the carrier posted earnings per share of 72 cents for the quarter ending March 30, 2015, well ahead of the 17 cents per share earned a year ago.

Total revenue rose to $99.483 million, up 1.7% from the $97.82 million reported a year ago. Lower fuel costs helped to hold down revenue growth in the quarter. Without fuel operating revenues rose 10.4% from the prior-year period.

"Obviously, we are thrilled with our first quarter results. Our operating income of $9.1 million is the most profitable quarter on record and certainly a significant improvement over last year's $2.8 million operating income,” CEO Daniel Cushman noted in the release made Wednesday after the market closed.

He said January is typically one of the company’s less profitable months, but this year that was not the case.

“We had great miles, and weather was not as much of an issue as it was during last year's January. Due to the nature of our customer mix, we will continue to be impacted by scheduled plant shutdowns, but the diversification achieved over recent years has given us better freight substitution capability. Similar to last year, February weather presented challenges but not to the level seen in the previous year. March, which is typically one of our stronger months, continued to be so,” Cushman said.

The dry van load carrier announced plans in January to continue its growth strategies despite tight driver capacity which it expects to worsen. Cushman said lower fuel costs pressured overall rates from a year ago. That said, the company has been able to secure certain rate increases, and its overall miles per truck per week increased, though not as much as expected.

In an effort to diversify, P.A.M continues to focus on its logistics brokerage business.  Cushman said the division performed well in the first quarter, nearly doubling its revenue year-over-year. Revenue for the logistics segment totaled $10.155 million in the quarter compared to $5.448 million a year ago.

"We continue to make investments at every level in our driving professionals. We have further invested in our driver partner schools supporting them in their growth and expansion. We are consistently reviewing and updating driver pay on a lane-by-lane basis and have seen positive results in our driver retention. Our overall package offering of new equipment, consistent driver-friendly lanes, increasing pay packages, and frequent home time opportunities has helped us reduce driver turnover,” he said in the report.

A driver shortage of between 35,000 to 40,000 drivers is getting more pervasive in the truckload sector, according to Bob Costello, chief economist with the American Trucking Associations’. He said growing freight volumes, regulatory pressures and normal attrition, the industry expects the problem to get worse in the near term as the industry works to find solutions to the shortage.

The $310 billion a year truckload sector moves the vast majority of freight in this country, and ATA President Bill Graves said the shortage of drivers in that sector is impeding sufficient growth among carriers in that segment.
 
“The truckload sector is adding little if any capacity,” Graves said. “LTL (less-than-truckload) is adding a small amount but remains well below all-time highs. LTL moves less than 10% of tonnage in this country, however.”

P.A.M. Transport Services operated 1,430 company-owned trucks in the quarter, down from 1,459 trucks a year ago. The company also employed 362 owner/operators in the first quarter, up from 352 hired in the first quarter of 2014.

P.A.M. drivers carried a total of 72,136 loads in the quarter up 7.28% from a year ago.
Revenue per truck averaged $3,210 per week in the first quarter of 2015, up from $3,040 a year ago.

The share price of P.A.M. (NASDAQ: PTSI) closed Wednesday at $63.68, down 48 cents. The thinly held company did not trade after hours following the earnings release. The share price is up 22% this year, setting a 52-week high at $64.80 on Wednesday, early in the day. The stock’s low price over the past 52 weeks is $21.22.

College students from the University of Arkansas and John Brown University were among those rolling in the dough at the Statehouse Convention Center in Little Rock on Wednesday.

The 2015 Donald W. Reynolds Governor’s Cup named its winners across multiple categories and students at the undergraduate and graduate level from universities across the state racked up more than $100,000 in prizes for their ideas.

The business plan competition, sponsored by the Arkansas Economic Acceleration Foundation, a subsidiary of the Arkansas Capital Corp., is in its 15th year and it has become a showcase for some of the best business ideas from the brightest college talent in the state.

More than 750 business leaders and college representatives were in attendance for the annual event. This year, 47 teams submitted business plans from 12 colleges and universities from across Arkansas for a chance to win money tied to the prize pool.

“At the risk of sounding cliche, every year it gets stronger, every year it gets better,” said Sam Walls III, president of the Heartland Renaissance Fund, an affiliate of the Arkansas Capital Corp. Group. “What was exciting about this, and exciting about the competition, is you’ll notice the diversity of the winners. In year’s past, there were a few institutions that kind of dominated at the event. Now, we have a broader range of people making it this far.”

The 2015 Donald W. Reynolds Governor’s Cup winners are:
Undergraduate AT&T Elevator Pitch Award – $2,000
TIRE – Harding University

Graduate AT&T Elevator Pitch Award – $2,000
Saf-Tech – Arkansas State University

Undergraduate Delta Plastics Innovation Award – $5,000
Conner Innovation – University of Arkansas

Graduate Delta Plastics Innovation Award – $5,000
Agricultural Innovations – Arkansas State University

First Place Agriculture Award – $5,000
Baby Booster – University of Arkansas

Second Place Agriculture Award – $3,000
Agricultural Innovations – Arkansas State University

Undergraduate Business Plan Winners
1st Place – $25,000
TIRE – Harding University

2nd Place – $15,000
Charlie’s Choices – John Brown University

3rd Place – $10,000
Opt-In – John Brown University

Graduate Business Plan Winners
1st Place – $25,000
Agricultural Innovations – Arkansas State University

2nd Place – $15,000
Kordate Solutions Inc. – University of Arkansas

3rd Place – $10,000
Baby Booster – University of Arkansas

First and second place winners of the undergraduate and graduate teams will compete against the top two teams from Nevada and Oklahoma for the Donald W. Reynolds Tri-State Award in May, where they will compete to win a share of the $118,000 prize pool.

Alleged violations of the Foreign Corruption Practices Act by Wal-Mart has cost the retailer more than $612 million in legal fees and compliance restructuring costs over the past three years.

The retail giant did not report the ongoing tally of FCPA expenses in any of its three reports issued on Wednesday (April 22). Wal-Mart does report the expenditures during its quarterly earnings releases leaving the public to keep their own tally, until the international corruption probe is resolved.

Wal-Mart’s Global Compliance report, one of the three reports issued Wednesday, came about last year by a mandate from the board’s audit committee in the wake of expanded allegations of bribery, permit mishandling and other corrupt practices in Mexico, India, Brazil and China.

In fiscal 2015 which ended Jan. 31, Wal-Mart said it spent $173 million on FCPA compliance-related costs. The majority of that — $121 million — was spent on legal costs associated with the investigation and additional inquiries. The remaining $52 million was spent on Wal-Mart’s own internal compliance overhaul.

In the prior two years, FCPA costs total $439 million for Wal-Mart, with $282 million in 2014 and $157 million in 2013.

Wal-Mart said in the 2014 Compliance report it expected to spend more than $100 million on compliance systems enhancements around the globe over the course of the next several years. In the 2015 report released Wednesday Wal-Mart did not mention the FCPA investigations by name and it gave no financial update on costs thus far or expected impact going forward.

Instead, the 7-page report attempted to highlight some of the strides taken by Wal-Mart as directed by the board of directors in 2013. The board’s audit committee established a set of compliance objectives they wanted to see accomplish by Jan. 31, 2014. In an effort to demonstrate Wal-Mart’s commitment to compliance a portion of executive compensation could be withheld should the executives fail to achieve their compliance objectives.

CEO Doug McMillon notes in the recent compliance report that senior management worked with the audit committee in fiscal year 2015 to accomplish 70 of the 72 compliance objectives outlined by the board the previous year. McMillon said some progress was made on the remaining two goals which have been carried over into the current year resulting in no reduction of executive compensation for fiscal 2015.

These compliance objectives can be grouped into three areas: people, policies and processes, and systems. The goals were set in collaboration between the audit committee and its counsel and top management, the report notes. He said additional staff was hired in fiscal 2015 to round out the retailer’s global compliance team. The retailer employs more than 2,000 people in its formal compliance program. The company also said it continued to develop its own internal anti-corruption resources.

“For example, we supplemented our anti-corruption leadership team by recruiting anti-corruption directors in the eCommerce businesses at Walmart.com.br (Brazil) and Yihaodian.com (China). Working with Walmart’s global anti-corruption team, these new directors conduct due diligence, develop and provide anti-corruption training, and oversee the implementation of anti-corruption policies and procedures,” the report stated.

McMillion said the company also built upon efforts began in fiscal 2014 for Wal-Mart’s appointments of compliance monitors in each of its international markets.

“These monitors (known as Continuous Improvement Teams) regularly visit the stores, assess the effectiveness of our compliance controls at store level, train managers on proper compliance procedures and assist the operators in correcting any issues identified,” the report noted.

During fiscal 2015, the teams completed more than 5,500 assessments at retail locations, identified any deviations from company policies and processes and collaborated with store operators to correct over 90% of those issues by year end, the report states. The retailer said it expanded the concept of compliance monitors to focus on anti-corruption policies and related financial controls. As a result of the findings last year a number of one-time externally handled functions have been transferred in-house.

Wal-Mart said it spent more $40 million in fiscal 2015 employing data and tracking analytics for its teams around the world, conducting due dilligence on third party acting on their behalf and centralizing the oversight of its license and permit applications and renewal.

In fiscal 2015 Wal-Mart said it extended a global license-management system into 11 of its international retail markets to simplifies the process for applying for licenses and provide a single repository for documentation associated with its licensing obligations.

Wal-Mart Stores Inc. had a profitable 2015 to the tune of $16.182 billion in net profits companywide on gross revenue of $485.651 billion. But that performance was not enough to garner the retailer’s top executive’s more compensation, according to the Proxy filing made public on Wednesday (April 22).

CEO Doug McMillon earned a salary of $1.2 million last year, of which he chose to defer $130,000. The board of directors at Wal-Mart have moved in recent years to more performance-based earnings that are tied directly to company sales, operating income and return on income. Last year, 75.3% of McMillon’s overall compensation was performance based.

McMillon’s total compensation was $19.392 million, down from $25.592 million in the prior year. The biggest reason for the decline was based on cash and stock incentives which were $2.878 million and $14.597 million, respectively. A year ago, McMillon’s cash bonus was $1.035 million, but the stock awards totaled $23.011 million.

Pension funding and other compensation for McMillon totaled $322,359 and $393,673, respectively. While pension funding was comparable to a year ago, more travel in fiscal 2015 pushed up the use of the corporate aircraft for business travel.

McMillon and his top management team did not come close to the targets set by the board for fiscal 2015. The filing noted that McMillon’s performance pay was equal to 75% of the target. The other five executives’ performance pay ranged from 71% to 91% of target payouts.

Charles Holley, chief financial officer, earned a salary of $885,165, up 11.5% from the year-ago period. His overall pay of $7.431 million was down from $8.199 million a year ago. Holley’s performance pay was 71.65% of his total compensation. His cash and stock performance awards totaled $1.349 million and $4.798 million, respectively. That compared to a cash bonus of $827,762 and stock awards of $6.227 million in the prior year. Holley’s pension ($137,129) and other compensation ($261,382) were on par with the prior year.

Greg Foran, CEO of Walmart U.S., was relocated twice in 2015 from China to Hong Kong and from Hong Kong to Bentonville generating $206,837 in moving expenses and $442,797 in the standard expatriate benefits.

He assumed his new role in October and his total income of $19.535 for fiscal 2015 includes his other positions abroad. Foran received a one-time cash bonus of $500,000 upon his new role of U.S. CEO. His performance-based pay was 73.5% of target and based upon both global and U.S. operational performance. Foran’s stock and cash incentives totaled $17.05 million. His other compensation of $1.128 million included the afore mentioned moving and repatriate pay as well as $23,030 for use of the corporate aircraft. Foran said he spent the first eight months in the new role out in stores making 116 unannounced visits during that time.

David Cheesewright, CEO of Walmart International, was new to that job in fiscal 2015. He earned a base salary of $1.152 million, also receiving a special individual performance bonus of $551,852. His total compensation in fiscal 2015 was $10.655 million. Cheesewright’s use of company aircraft was valued at $247,450.

Rosalind Brewer, CEO of Sam’s Club, earned a base salary of $893,819 last year, garnering a pay raise of 5.95% from the prior year. Her overall compensation totaled $9.56 million which was $2 million less than the prior year. Her performance stock awards totaled $6.698 million, down from $9.181 million in the prior year. Cash incentives in fiscal 2015 were $1.711 million, up from $1.281 million in the prior year.

Wal-Mart also chose to provide salary details for Neil Ashe, CEO of Walmart Global E-commerce in this year’s Proxy filing. Ashe earned a base salary of $935,303 rising 10.8% from the prior year. His total compensation for fiscal 2015 was $9.436 million compared to $13.178 million in the prior year. Like the other execs Ashe’s overall pay was compromised by lackluster performance relative to goals set by the board. Ashe’s performance pay was equal to 73.51% of the target set for him. His performance pay included stock awards of $6.648 million, down from $11.252 million in the prior year. Cash awards of $1.618 million, were up from $1.030 million.

Political commentary on taking a middle-of-the-road stance, a criticism of the term “cord cutters,” and a note about a local university professor who doesn’t buy into Fort Smith’s western heritage are part of Dawson Meadow’s report this week.

Meadows also announces that Things To Do In Fort Smith has acquired an entire month. He signs off with an encouragement to be civil on Facebook.

The Video Wire is a collaboration between The City Wire and Things to Do in Fort Smith.

Hospitality tax collections are off to a mixed start in the Fort Smith region, but revenue from Arkansas’ 2% tourism tax is off to a record start following a record finish in 2014. The region also saw a dip in tourism industry employment to begin 2015.

Tax revenue from hotel and restaurant activity in Van Buren for the first two months of the year total $64,409, down from the $66,111 during the same period in 2014. The city collects a 1% tax on lodging and a 1% prepared food tax.

Fewer people eating in Van Buren restaurants pushed the numbers lower. Revenue from the prepared food tax in January and February was $56,381, down 3.36% compared to the same period in 2014. Lodging tax revenue was $8,027 in the first two months, up 3.31% compared to the same period in 2014.

Hospitality tax collections in Van Buren during 2014 totaled $430,278, up 1.4% compared to the same period in 2013.

Maryl Koeth, executive director of the Van Buren Advertising & Promotion Commission, said the numbers are still on target with what was budgeted.

“Our 2015 tax revenue is about where we projected it would be. January numbers were down slightly, but there were several accounts that were slow to pay in January and those have corrected in February and so far for March,” Koeth said.

She also said the loss of Motel 6 may initially lower collections, but expects Spring events to make up the difference.

“We will see a slight dip in lodging numbers with the loss of the Motel 6. I anticipate that drop to be very slight. Factoring in the winter weather in late January and February restaurant numbers will still show an increase over last year. Helping boost the numbers for this spring are special events in April and May. All in all we are on target so far for 2015,” Koeth told The City Wire.

Hospitality tax collections in Fort Smith for the first two months of the year total $114,836, up 4.07% compared to the same period in 2014. The Fort Smith Convention & Visitors Bureau collected $761,826 in 2014, up 4.2% compared to 2013. The city collects a 3% tax on lodging.

Claude Legris, executive director of the Fort Smith Convention and Visitors Bureau, said the tax revenue gain is a product of higher hotel occupancy rather than higher hotel rates.

“Citywide occupancy was up 7.5% in January and 8.5% in February but Average Daily Rate was flat in January (+0.6%) and actually down (-0.5%) in February so increases were really a result of the increase in occupancy,” Legris said. “Preliminary reports for March indicate that overall the first quarter will be better than that period in 2014.”

Employment in the region’s tourism industry was 8,700 during March, unchanged compared to February and below the 9,000 in March 2014. The sector reached 2014 employment highs of 9,300 in May, June and August. The numbers were recently revised by the U.S. Bureau of Labor Statistics. That revision lowered the top monthly 2014 employment in the sector from 9,900 to 9,300. The peak employment for the sector is 9,400 which was first reached in June 2007.

Collections of Arkansas’ 2% tourism tax in January totaled $833,448, up 5.89% compared to January 2014 and a new record for January collections. Collections of the tax in 2014 totaled $13.677 million, up 7.48% compared to the $12.716 million collected in 2013. The 2014 tally set a new record for the tax. Following are the past five years of 2% tax collections.
2014: $13.677 million
2013: $12.716 million
2012: $12.404 million
2011: $12.025 million
2010: $11.492 million

FORT SMITH HOSPITALITY TAX COLLECTIONS
2014: $761,826
2013: $731,057
2012: $746,182
2011: $708,141
2010: $678,934

VAN BUREN HOSPITALITY TAX COLLECTIONS
2014: $430,278
2013: $423,221
2012: $425,554
2011: $429,561
2010: $395,195

The 16-member Governor’s Council on Common Core Review will need more specifics, particularly about the testing process, Lt. Gov. Tim Griffin, the committee’s chair, said at the conclusion of a day of hearings at the Capitol and then a listening tour session at the Pulaski Technical College Little Rock-South campus Thursday (April 23).

Gov. Asa Hutchinson appointed the council during the legislative session to study the Common Core State Standards, a group of common standards in math and English Language Arts adopted by 43 states and the District of Columbia.

While the standards originally were proposed by the National Governors Association and the Council of Chief State School Officers, they later were encouraged by grants from the federal Department of Education and have come under fire from conservatives who consider them an example of federal overreach. The number of states participating in the Partnership for Assessment of Readiness for College and Careers (PARCC), a consortium of states where students are taking a common exam, has fallen from 24 to nine. Arkansas legislators voted to keep the state in the consortium this year.

Griffin said he was encouraged by the day. He said hundreds of people were watching the livestream of the Capitol hearings. He said the video could be a resource for other states.

“I think today was a great first day in the sense that the people on the council were genuinely interested in not a particular outcome, but in really getting to the bottom of this,” he said. “I think that we made a lot of headway in the sense that the testing keeps really coming up more than I thought. I mean, the testing has dominated the conversation from the witnesses and the public in there.”

Griffin believes the council can reach a consensus on recommendations for the governor. However, he said it will be asking witnesses for more specific recommendations.

“Without the specifics, all we have is people saying there’s room for change,” he said.

He expects more specifics to come when the council focuses on subjects such as math and data privacy, and that more time will be needed to consider testing, which he said survey data had shown is the one area where teachers “are clearly dissatisfied.”

During the listening tour session at Pulaski Tech, parents and others in a small audience offered varying opinions about the standards. One parent said her son was excelling until their school moved to the standards and now is earning an F. She expressed concerns about some of the procedures involved in testing.

Another parent said her daughter was doing well, but expressed concern that she wasn’t being challenged with harder material because teachers had to focus on other students. She said too many resources are being devoted to standards and not enough to other needs. Another parent said she likes the Common Core because common standards are important in a mobile society.

Some council members indicated that some of the problems being discussed are the result of local district implementation and communication, not necessarily the standards themselves. Griffin said in the hearing that too much of a top-down approach had been taken.

“I think a lot of people thought, ‘We’ll just do this and the parents will come along,’ and you can’t top-down stuff,” he said. “You’ve got to bottom-up it. And if people don’t agree or buy into what you’re doing, it’s a problem, particularly in a democracy.”

Gay rights, the White House Correspondents Dinner, and a potential scandal involving Democratic presidential candidate Hillary Clinton were among the topics discussed Sunday on a national television news show by Arkansas Gov. Asa Hutchinson.

Hutchinson was a panelist on the NBC show “Meet the Press” discussing a recent book called “Clinton Cash” by Peter Schweizer.

The book, which will be released May 5, alleges a quid pro quo between donations accepted from the Bill, Hillary and Chelsea Clinton Foundation by foreign companies and countries, money paid for speeches given by the former president, and Hillary Clinton’s record as Secretary of State.

Opponents have called the book a political hatchet job, while supporters of Schweizer have said the book was fully vetted by media outlets like the New York Times and Washington Post. Host Chuck Todd asked Hutchinson about the issue.

“Governor Hutchinson, you’re from the Clinton’s home state. They have had accusations thrown at them, time and again. And they politically always survive. Do you think this time is different?” Todd asked.

“Does it impact her base? The Republican base? Impact the middle?” Hutchinson responded. “What this does is reminds everyone that everything about the Clintons is complicated and this story has three ramifications that bear looking at. First, it is an awful, ungodly amount of money involved. It involves a foreign source and then it involves high positions in government and important decisions (being made).”

Hutchinson also said the issue provides an interesting history lesson.

“(There has been) no evidence of a quid pro quo and Republicans need to be careful not to overstate their case. But it reminds us that the Clintons are complicated and they tend to make mistakes,” Hutchinson said.

SAME SEX MARRIAGE
The show also had a discussion about an upcoming United States Supreme Court case, Obergefell v. Hodges, involving same sex marriage. The case will be heard Tuesday in the nation’s capital.

According to the United States Supreme Court website, the case is expected to answer two questions “does the 14th Amendment (of the United States Constitution) require a state to license a marriage between two people of the same sex and does the 14th Amendment require a state to recognize a marriage between two people of the same sex when their marriage was lawfully licensed and performed out of state?”

Hutchinson said attempting to determine how justices will rule on the case was difficult, calling the situation “unpredictable.”

However, he did say he felt justices could defer to the states on some aspects of the case and that the issue has definite generational and political overtones.

Hutchinson, who attended Saturday night’s White House Correspondents Dinner, was asked what voters in Arkansas might think of the black tie comedy-laden banquet. His reply, “Peculiar.”

Wal-Mart Stores has licenses to sell beer and wine at 546 locations across Texas, but the retail giant wants more and recently filed suit against the Texas Alcoholic Beverage Commission Liquor challenging Texas’ liquor law.

Present law forbids public companies from obtaining a “package store permit” that allows the sale of liquor. This law is protective toward family businesses, giving them an unfair advantage, the critics argue. Wal-Mart Stores is seeking to remove the public company block with injunctions against the Texas Alcoholic Beverage Commission in hopes of overturning what it deems “unconstitutional.”

“This is counter to Texas’ belief in free enterprise and fair competition, limits our customer’s choice and keeps the price of spirits artificially high, all of which harm Texas consumers,” Wal-Mart spokesman Lorenzo Lopez told the media.

The Bentonville-based retailer has also joined Kroger Co., and Costco Wholesale Corp. lobbying for legislation that would override the law. No other state prohibits liquor store ownership by publicly owned companies, which is at the heart of the Wal-Mart injunction. Another part of the law would require Wal-Mart to abandon its 534 beer and wine permits before it could apply for liquor store permits in Texas.

According to the lawsuit filed in February, Wal-Mart sells wine, beer or both in 546 Walmart and Sam’s Club stores in Texas. Wal-Mart has licenses to sell distilled spirits in 25 other states, the company said in the lawsuit. 

It became illegal for public companies to sell hard alcohol in Texas in 1995. At the time, it was seen as an alternative to a prior law that banned out-of-state residents from owning liquor stores, the company stated in the lawsuit. The bills supported by Wal-Mart and other large retailers would change the law that bans public companies from selling spirits and those that make it illegal to buy more than five liquor-store permits.

Moving in Wal-Mart’s favor a new bill recently passed the Texas Senate that aims to end the five-permit law. The bill is moving to the Texas House in this session which is slated to end June 1. Like Arkansas, the Texas Legislature convenes every two years.

Critics of the Texas law said the state uses a wide net to define “public companies.” For instance the law pertains to any company that has more than 35 shareholders such as Tyler, Texas-based Brookshires Grocery Company. This east Texas chain sells beer and wine in wet counties of its 100 stores, but is not allowed to sell liquor because it has more than 35 shareholders, although it’s privately held. 

Brookshires spokesman Jason Cooper told The Dallas Morning News that “Texas shouldn’t be the only one in the business of picking winners and losers,” he said. “The current law restricts consumers and choices that they deserve.”

Liquor is big business for Wal-Mart and Sam’s Clubs in states that it operates package stores and that is money the retailer doesn’t want to leave on the table, given its large store presence across Texas. Analyst Matt Tullman, of Merchant Mechants said alcohol is also something shoppers will splurge on and retailers looking to grow top line sales can boost performance with alcohol sales.

Wal-Mart CEO Doug McMillon said growing top line sales head a short laundry list of key agendas on which his management team is focused. Analysts recently told The City Wire they expect a lackluster 2% rise in overall sales this year, which would be an improvement over the anemic pace of 0.5% last year. 

Wal-Mart also knows that alcohol sales track particularly well with the Millennial generation, an important demographic it’s been wooing. The Wal-Mart founding family has been somewhat mixed on alcohol sales over the years. The Wall Street Journal reports that Wal-Mart didn’t begin advertising alcohol in its circulars until 2008 in part because founder Sam Walton didn’t approve of drinking to the excess.

That said, Walton’s grandsons were instrumental in bringing liquor sales to the retailer’s home county in the 2012 when they backed a signature resolution to bring the decision to county voters in the state’s general election. With broad voter approval, Benton County became “wet” in 2013 and the first liquor stores opened around nine months later.

Wal-Mart could not apply for a liquor store permit in its home state because it already owns and operates a liquor store in its Fayetteville Sam’s Club. Arkansas State law only allows one permit per business across the entire state. Rather than fight Arkansas law, Wal-Mart has focused on bigger fish expanding in markets where there are less barriers such as Florida. 

Lopez said Wal-Mart has redesigned some of its stores to make more room for beer, wine and spirits. It built six stand-alone liquor stores last year in Florida and plans to add around 15 more in the state. The company hopes to significantly increase U.S. alcohol sales by 2016, he said.

For the first time in more than two years, monthly enplanements posted a decline at the Northwest Arkansas Regional Airport (XNA), with enplanements also seeing a March decline at the Fort Smith Regional Airport. However, both airports have positive traffic for the first quarter.

Enplanements at XNA totaled 139,434 for the first quarter of 2015, up 4.22% compared to the same period in 2014. XNA ended 2014 with 640,537 enplanements, up 10.15% over 2013, and more than the record of 598,886 enplanements in 2007. The 2014 gain also marked the third consecutive year of increased traffic at the airport.

XNA had 43,708 enplanements in March, down a scant 0.058% compared to March 2014.

The airport is served by five airlines that provide connections to 10 U.S. cities. XNA’s first full year of traffic was 1999, and the airport posted eight consecutive years of enplanement gains before seeing a decline in 2008.

Enplanements at the Fort Smith Regional Airport total 20,911 for the first quarter of 2015, up 1.05% compared to the same period in 2014. Enplanements at Fort Smith totaled 92,869 in 2014, up 9.87% compared to 2013.

March enplanements at Fort Smith totaled 7,502, up 2.03% from March 2014. The airport offers flights to Atlanta and Dallas-Fort Worth through Delta and American Airlines.

The Bill & Hillary Clinton National Airport in Little Rock posted enplanements of 130,598 for the first two months of 2015, down 8.74% compared to the same period in 2015. (The airport did not have March enplanement data as of April 27.) The airport was the only one of Arkansas’ largest commercial airports to not post an enplanement increase in 2014. Enplanements in 2014 totaled 1.038 million, down 4.32% compared to 2013.

NATIONAL TRENDS, ESTIMATES
The most recent federal data – U.S. Department of Transportation – show 769.868 million enplanements in the top 100 U.S. airports between February 2014 and January 2015, up 2.76% compared to the same period in 2013-2014.

Moody’s reported in December 2014 that enplanement growth would continue into 2015.

“More seat capacity on US airlines, combined with continued growth in the US economy, will push enplanement growth between 3% and 4% this year and in 2015, exceeding our previous expectation of up to 2% growth in 2014,” Moody’s noted in a report on airport bonds.

Airlines for America, the trade association for most of the major airlines, predicts Spring 2015 travel will rise to its highest mark in seven years. The group says approximately 134.8 million passengers – 2.2 million per day – are expected to fly on U.S. airlines during March and April compared to 132.2 million passengers in 2014, a 2% per day increase.

ENPLANEMENT HISTORY (Fort Smith Regional Airport, since 2000)
2014: 92,869
2013: 84,520
2012: 86,653
2011: 86,234
2010: 86,129
2009: 78,432
2008: 87,030
2007: 99,127
2006: 94,717
2005: 102,607
2004: 92,928
2003: 90,493
2002: 87,944
2001: 95,419
2000: 104,182

ENPLANEMENT HISTORY (Northwest Arkansas Regional Airport, since 2000)
2014: 640,537
2013: 581,487
2012: 565,045
2011: 562,747
2010: 570,625
2009: 540,918
2008: 571,845
2007: 598,886
2006: 586,320
2005: 583,940
2004: 511,714
2003: 448,228
2002: 400,063
2001: 374,122
2000: 367,157

Amidst a backdrop described by several podium speakers as a religious revival, Central Arkansas’ startup community held a celebration on Monday (April 27) to announce a major grant that will spark more activity in the state’s entrepreneurial ecosystem.

Winrock International CEO Rodney Ferguson stepped to the stage and said, “I’m not a Baptist preacher, but it sure feels like a revival here today.”

The Arkansas Regional Innovation Hub announced a $1 million grant from the U.S. Economic Development Administration to complete the development of its Innovation Center in the Argenta district of downtown North Little Rock. The Innovation Hub offers maker and collaboration space to encourage more entrepreneurship and startup activity in Central Arkansas.

The $1 million grant was provided at a press conference that included U.S. Deputy Assistant Secretary of Commerce for Economic Development Matt Erskine, Gov. Asa Hutchinson, U.S. Rep. French Hill, Delta Regional Authority Co-Chairman Chris Masingill, Pulaski County Judge Barry Hyde, and North Little Rock Mayor Joe Smith.

“The U.S. Economic Development Administration is focused on helping communities like North Little Rock capitalize on our nation’s innovative spirit to create the next generation of businesses,” said Erskine. “EDA’s $1 million investment will help to redevelop a 1920’s-era building to serve as the Argenta Innovation Center, which will provide critical education, training, prototyping, and startup training to boost entrepreneurial opportunities in Arkansans.”

“We are tremendously grateful for this support from the U.S. Economic Development Administration,” said Warwick Sabin, dxecutive director of the Arkansas Regional Innovation Hub. “This grant demonstrates confidence in the model that we have created to support entrepreneurship, and it establishes Arkansas as a center for innovative programming in talent and enterprise development.”

A portion of the grant will be used to complete the final phase of renovations of the Innovation Center, which will include The Silver Mine, an entrepreneurship resource center for co-working, startup acceleration, and other programming to support new and growing business enterprises. The rest of the funds will be used to purchase the building for the Innovation Hub.

The Innovation Center is home to three other programs:
• The Launch Pad, a maker space with cutting-edge equipment and technology;
• The STEAM Lab, a classroom and laboratory space for science, technology, engineering, and math pursuits; and
• The Art Connection, a program for high-school students that develops leadership and innovation through the visual arts.

“You can feel the momentum building in Arkansas,” said Hutchinson. “With projects like the Innovation Hub, we will continue to establish the state as a place that values innovative thinking and acts as a magnet for fast-growth business enterprises. When it comes to entrepreneurial opportunities, creative thinkers will love Arkansas.”

“I am pleased to see this public-private cooperation to facilitate innovation and entrepreneurship in our region,” said U.S. Rep. French Hill, R-Little Rock. “More start-up businesses will enhance the long-run diversity and dynamism of Little Rock.”

On Wednesday, the Innovation Hub will co-host the inaugural Arkansas Manufacturing Innovation Summit, as well as the first-ever Maker Faire in Central Arkansas.

The first quarter of tax collection reports delivered welcome news for Fort Smith City Directors and city staff who needed a bump in revenue to stabilize the city’s more than $42 million general fund budget.

The city has in the first three reporting months of 2015 collected $5.236 million on its 1% street tax program and the same amount on a 1% tax divided between bonds, Fire Department and the city’s Parks Department. The amount is up 5.22% compared to the same reporting period in 2014, and is 6.07% above the budget estimate.

The city’s 1% street tax program collected $1.634 million in the March report, essentially unchanged compared to March 2014. (Because the state of Arkansas has a two-month delay in reporting collections back to the cities, the city of Fort Smith — for budgeting purposes — has historically reflected the collections on a one-month delay. Which is to say, the tax collections remitted to cities in April are from taxes collected in February and transferred by merchants to the state in March.)

Collections during 2014 of the Fort Smith’s 1% sales tax for the street program topped $20 million for the first time since 2008. The 1% tax generated $20.099 million for the January-December reporting period, up 3.24% over 2013, and was above the budget estimate by 0.78%. However, collections for the past five years have been inconsistent. Revenue from the city’s street tax was down 0.87% in 2010, up 3.9% in 2011, up 1.36% in 2012, and down 0.69% in 2013.

The city’s portion of the countywide 1% sales tax generated $1.255 million in the March 2015 report, down 2.95% compared to March 2014, and up 2.66% below budget estimates. For the first reporting quarter of the year, the city’s portion of the countywide tax revenue is $4.014 million, up 3.54% compared to the same period in 2014. The revenue for the first two months is also 3.84% above the budget estimate.

Countywide tax collections are critical because they fund a majority of essential services within the city’s general fund budget.

LOWER FUEL COSTS AND CONSUMER SPENDING
Reduced spending on fuel could be driving more consumer spending in the Fort Smith area. Economists have said lower fuel prices are likely to fuel an uptick in consumer spending. With crude oil prices expected to remain below $60 a barrel for the remainder of 2015, the average U.S. household will spend about $700 less on gasoline in 2015 compared with 2014 as annual motor fuel expenditures are on track to fall to their lowest level in 11 years, the U.S. Energy Information Administration (EIA) said in its most recent short-term forecast.

The EIA said average household spending in 2015 is estimated to be $1,817, down from $2,513 in 2014. The federal agency estimates the 2016 spending will increase to $2,058.

“Between 2003 and 2008, average annual household expenditures on gasoline rose steadily by about 15% per year, to $2,715 in 2008. The economic recession in 2009 resulted in a 27% drop in gasoline expenditures, with both lower prices and reduced consumption. Since then, gasoline expenditures rose through 2012 and fell in both 2013 and 2014,” the EIA noted in its April 10 report.

PREVIOUS ANNUAL COLLECTION INFO
Fort Smith 2% sales tax collection (1% for streets; 1% for water/sewer bonds)
2014: $40.198 million
2013: $38.938 million
2012: $39.210 million
2011: $38.683 million
2010: $37.229 million
2009: $37.554 million
2008: $41.226 million
2007: $37.858 million
2006: $36.840 million

Fort Smith portion of 1% countywide sales tax
2014: $15.625 million
2013: $15.353 million
2012: $15.279 million
2011: $15.15 million
2010: $14.89 million
2009: $15.04 million
2008: $16.61 million
2007: $15.15 million
2006: $14.71 million

The number of related-party transactions among execs and board members with Wal-Mart Stores continues to be higher than its competitors such as Costco and Kroger, according to recent Proxy filings with the federal Securities and Exchange Commission.

Corporate compliance experts say companies that began as family enterprises often take time to thin out the family ties within the board of directors and top management teams. It’s been nearly 53 years since Sam Walton first opened Wal-Mart Stores but family ties remain deep in the retailer’s board of directors and is also spreading wider between CEO Doug McMillon, executive vice president Rollin Ford and former CEO Mike Duke who, like McMillon, is also a company director.

A recent Wal-Mart proxy filing details nearly a dozen related party transactions between its board of directors and corporate officers/executives, which by law must be disclosed to shareholders.

One long-term related party transaction is between the Walton Family, specifically, Jim, Rob and the John T. Walton Estate who are owners of Arvest Bank and Wal-Mart, to which the Walton Family owns roughly 50%. The banking group leases space inside Wal-Mart Stores for branch operations paying the retailer about $500,000 annually in rent.

One other longtime relationship noted in the proxy is between the University of Arkansas and Wal-Mart Stores. Each year the retailer leases space at the UA to conduct its annual shareholder meetings, events as well as academic studies throughout the year. Last year Wal-Mart paid the university $1.5 million, including $900,000 for the use of facilities in connection shareholders’ meeting,

The family connection to the University of Arkansas is that UA Chancellor Dr. David Gearhart is the brother of Jeffrey Gearhart, an executive officer at Wal-Mart Stores. Chancellor Gearhart is slated to retire in July. Wal-Mart said it will in fiscal 2016 continue to use UA facilities for similar events and pay the university for studies and programs.

TIES TO MCMILLON
CEO McMillon has close ties to three family members who also work at Wal-Mart or for a supplier to the retailer, according to the proxy filing.

McMillon’s sister, Lori Haynie, is an executive officer at Mahco Inc. Last year Wal-Mart paid Mahco and its subsidiaries about $19.3 million in connection with sporting goods purchases and related products. The retailer expects to make similar purchases from Mahco this year.

McMillon’s brother and sister-in-law each work at Wal-Mart Stores, according to the proxy filing. His brother-in-law Greg Bray is a senior director in the finance department, earning roughly $182,900 in salary last year. Bray’s benefits are worth $108,400 which included 651 shares of restricted stock. He joined Wal-Mart in 2002.

Nichole Bray, sister-in-law to McMillon, is a senior manager in the company’s Information Systems Division, For fiscal 2015, Wal-Mart paid her a salary of approximately $126,800 with benefits worth $75,100.

DUKE,ROLLIN FORD CONNECTIONS
Director Mike Duke’s son-in-law, Stephen Weber, is a senior manager in Wal-Mart’s Information Systems Division earning a salary of $128,600, with benefits worth another $49,700.

Brittney Duke, a senior director in Wal-Mart’s Marketing department is the daughter of Mike Duke. She was hired by Wal-Mart on Feb. 1 from Saatchi & Saatchi X at a salary of $120,000. Wal-Mart expects she will receive compensation and other benefits in excess of $120,000 from the company in fiscal 2016

Rollin Ford, a chief administrative officer at Wal-Mart Stores, has three family members who also work for the retail giant.

Timothy Togami is a senior director in Wal-Mart’s Human Resources department and is the brother-in-law of Ford, according to the filing. For fiscal 2015, Wal-Mart paid
Togami a salary of $179,700, with another $106,800 in benefits.

Ford’s daughter, Jessica Ford Salmon, is a senior manager at Sam’s Club. For fiscal 2015, Wal-Mart paid her a salary of $94,500 with benefits of $29,700. 

Brian Salmon is a senior buyer at Wal-Mart, and also the son-in- law of Ford. For fiscal 2015, Wal-Mart paid Salmon a salary of $85,400, with benefits worth another $42,600.

COMPARATIVE CONNECTIONS
The City Wire looked at competitor data for Kroger and Costco and found the related-party transactions there to be far less.

At Costco there was just one instance of a director’s family member being directly employed by the company. Executive Dennis Zook’s son was employed by the retailer in 2014 at a salary of $148,200, also earning a bonus of $36,147 and a grant of 2,340 shares of stock.

There were no such family references made by Kroger. The grocery giant did reference $10 million in purchases from Staples whose CEO Ronald Sargent is also a board member at Kroger. 

Alan Ellstrand, a corporate governance expert at the University of Arkansas, said he was somewhat surprised at the number of family tie relationships at Wal-Mart compared to competitors.

“Perhaps it relates to the unique corporate culture at Wal-Mart, who has always done business with those it knows. This is also in keeping with the regional culture. It’s always been part of the Wal-Mart DNA to keep things close to the vest,” Ellstrand said.

He said while the number of related parties are greater at Wal-Mart than other companies, so is the overall size difference. 

“I really don’t see that there has ever been any negative consequences of Wal-Mart hiring those it knows. Early on Sam Walton did the same thing,” Allstrand said.

Looking at other companies in the region like J.B. Hunt Transport, there are very few, if any instances of related party transactions pertaining to directors’ families. 

Bryan Hunt, son of founders J.B. and Johnelle is a director, but has never worked in an executive position within the trucking firm. Instead he operates auto dealerships and auctions. There are no related party transactions involving his business interests.

Tyson Foods will eliminate the use of human antibiotics in its U.S. chicken flocks by the end of 2017. Tyson is a major supplier to McDonald’s who declared similar goals earlier this year under consumer pressures and growing industry debate about antibiotic use.

Springdale-based Tyson Foods is one of the largest suppliers of meat protein in the world with the No. 1 marketshare for chicken in the U.S. Tyson CEO Donnie Smith said Tuesday (April 28) that addressing antibiotic use is something Tyson has worked toward for several years.

“Antibiotic resistant infections are a global health concern,” Smith said. “We’re confident our meat and poultry products are safe, but want to do our part to responsibly reduce human antibiotics on the farm so these medicines can continue working when they’re needed to treat illness.”

Tyson has reduced antibiotics in its chicken operations since 2011. Last year Tyson Foods stopped using antibiotics in its 35 hatcheries for broilers. Tyson said any antibiotic used on farms requires a veterinary prescription and human grade antibiotic use has been reduced more than 84% during the past four years.

“Given the progress we’ve already made reducing antibiotics in our broilers, we believe it’s realistic to shoot for zero by the end of our 2017 fiscal year. But we won’t jeopardize animal well-being just to get there. We’ll use the best available treatments to keep our chickens healthy, under veterinary supervision,” Smith said.

Tyson Foods is also forming working groups with independent farmers and others in the company’s beef, pork and turkey supply chains to discuss ways to reduce the use of human antibiotics on cattle, hog and turkey farms. Those groups will begin meeting this summer.

The poultry industry has long claimed that antibiotic use is necessary at times to treat and prevent disease within flocks. The debate emerged in recent years as health advocate groups became concerned that prolonged use of antibiotics in animal production could promote antibiotic resistance in humans. The discussion which was first centered around environmental groups has spread to the Center for Disease Control in more recent years.

The National Resources Defense Council reports that 80% of all antibiotics sold in the U.S. are used on cattle, pigs, poultry and other livestock, the vast majority to speed up growth and compensate for crowded, and often unsanitary conditions.

The Center for Disease Control brought more focus to antibiotic resistance risks in its 2013 report, “Antibiotic Resistance Threats.”

“Up to half of antibiotic use in humans and much of antibiotic use in animals is unnecessary and inappropriate and makes everyone less safe,” the CDC noted.

Jonathan Kaplan of the NRDC said the poultry industry has relied on a loophole in Food and Drug Administration guidelines that allows for medically important antibiotics to prevent disease with no real limit on how much or how often the drugs are administered. He said McDonald’s recent move to phase out the use of medically important antibiotics over the next two years will ripple through the industry. Tyson Foods and Simmons Foods both supported McDonald’s recent commitment, telling The City Wire they were already working toward the goal within their own operations.

Animal welfare has long been part of the discussion among animal growers who now treat and then cull any birds that have received human-grade antibiotics. Those culled birds are not sold to McDonald’s or other customers requiring no-human antibiotics.

Ionophores, which are technically antibiotics, can be used in the chicken supply, because there is little evidence they contribute to the problem of antibiotic resistance in humans, Kaplan said.

“One of our core values is to serve as responsible stewards of animals – we will not let sick animals suffer,” Smith said. “We believe it’s our responsibility to help drive action towards sustainable solutions to this challenge by working with our chicken, turkey, beef and pork supply chains.”  

Tyson Foods’ international business is taking similar measures on antibiotic use in its global chicken operations but has not set a timeframe. Smith said today’s announcement will not materially affect the company’s financial performance.

Wal-Mart Stores does more than just sell stuff. Economic and social initiatives – often interwined – are a big part of the global retailer’s business model and public image. Sourcing more U.S. made products, empowering women, and putting veterans back to work, are just a few of programs pushed from Bentonville.

The company released on April 22 a 137-page Global Sustainability Report which provided some color on the progress it’s making in those three areas.

RESHORING MANUFACTURING JOBS
Wal-Mart’s efforts to source $250 billion in products supporting U.S. jobs over 10 years has been a high-profile initiative. The retailer said it is on target to reach its commitment by 2023. From light bulbs, to towels, patio furniture to toys, Wal-Mart said suppliers are expanding manufacturing and assembly in the U.S. 

Infant pacifiers manufactured by NUK are being made in Reedsburg, Wisc. The company onshored some of its European production last year. Nuk said it assembled baby products in the U.S. since 1949. With the Wal-Mart commitment, the company said it was able to expand its U.S. manufacturing footprint to give customers the option of  “Made in the U.S.” pacifiers.

The NUK move, like most of the onshoring initiatives underway, will be a gradual progression. There were about two dozen new jobs created in Reedsburg, Wisc., but more production is planned during the next year or two.

One of the largest onshoring moves was with Kent Bicycles who invested $4.3 million into a new assembly plant in Manning, S.C.

Kent CEO Arnold Kamler told The City Wire last year that it made sense for Kent to onshore some of its operations in China. Kamler said he attended Wal-Mart’s Year Beginning Meeting in Orlando in March 2013 where he met South Carolina Gov. Nikki Haley and the two discussed the idea of working together to bring some production or assembly back to the U.S.

Kent was already a supplier to Wal-Mart but found the retailer’s incentive ideal given that onshoring jobs take time and money. An estimated 50,000 bikes will roll off the assembly line in Manning this year. By the end of 2016, Kamler expects Kent to produce 500,000 bicycles which will support 175 U.S. jobs.

Wal-Mart’s decade-long commitment of $250 billion is expected to created one million U.S. jobs in manufacturing and related services, according to the Boston Consulting Group. Two years into the commitment the job creation numbers are behind the 100,000 annual average needed. Wal-Mart has not given a total tally of jobs created from its supplier commitments. However, the individual reports given thus far tally less than 10,000 jobs  created.

A report released Tuesday (April 28) by the Reshoring Initiative indicates more than 60,000 manufacturing jobs were brought to the United States by reshoring and Foreign Direct Investment (FDI) combined in 2014, representing a 400% increase since 2003. It is not clear how many of those are related to products sold at Wal-Mart.

“With only 30,000 to 50,000 jobs being offshored to other countries in 2014, the resulting net gain of 10,000 or more jobs per year represents a shift in the right direction,” said Harry Moser, founder of Reshoring Initiative.

Of particular interest are the reasons companies gave for reshoring and FDI. Government incentives, the skilled workforce, capitalizing on the value of a Made in USA label, and automation topped the list in 2014. At the same time, companies cited lower quality, long lead times, high freight costs and rising wages as reasons against offshoring.

The data also indicates that reshoring was strongest in the Southeast and Texas, a trend consistent with The Boston Consulting Group’s forecast for those areas to lead the way in becoming competitive with China for the manufacture of products to be sold domestically. Much of this is attributed to the trend for companies to build “green-field” factories in states with lower wages, lower taxes and right-to-work laws.

“We publish this data annually to show companies that the trend in manufacturing in the United States is to source domestically,” Moser said. “With 3 to 4 million manufacturing jobs still off shore, we see huge potential for even more growth and hope this data will motivate more companies to reevaluate their sourcing and siting decisions.”

Wal-Mart’s Manufacturing Vice President Cindy Marsiglio, recently told The City Wire that the retailer is pleased with progress it’s made on the manufacturing front in the past two years. While Marsiglio would not provide an estimated number of projects, in October 2014 she said there 150 projects in various stages.

“There are more projects in the pipeline today than ever before, from concept to commitment and everything in between,” she said.

Wal-Mart did say it expects to see more fruits from its onshoring initiative come through this year. The retailer will hold another Open Call for U.S. suppliers on July 7 at its Bentonville headquarters.

HIRING VETERANS
Hiring veterans has been a priority for Wal-Mart for many years, but more so since 2013 when then CEO BIll Simon, announced a commitment to offer a job to any eligibly discharged veterans within their first year post active duty.

Since Memorial Day 2013, Wal-Mart said it has hired more than 77,000 veterans. Also, through a $20 million philanthropic investment, Wal-Mart and the Wal-Mart Foundation are working with private and public sector organizations to support veteran reintegration.

In it’s home state of Arkansas, Wal-Mart has hired 2,207 veterans since 2013. In neighboring Texas, 10,102 veterans have taken jobs at Wal-Mart over the past two years.

WOMEN’S EMPOWERMENT
A big part of Wal-Mart’s efforts to empower women is to bring on more of them as suppliers. Since 2011, Wal-Mart said it has sourced $11.24 billion in products from women-owned businesses, including $4.16 billion in the most recent fiscal year.

“Our female customers in the U.S. have told us they’re interested in purchasing products sourced from women-owned businesses so Wal-Mart has supported WEConnect International and Women's Business Enterprise National Council (WBENC) in the creation of a Women Owned logo that can be used by certified businesses to clearly identify products and services as such,” the company noted in the report.

In 2011, Wal-Mart committed to source $20 billion from women-owned businesses by the end of 2015. The retailer said it’s $775 million ahead of its goal to date.

Wal-Mart also sought to double the sourcing of products from women-owned business in its international markets through 2016. The retailer said it has calculated the baseline spent on women-owned business in seven markets, tracked quarterly progress and began to implement strategies to grow the amount spent. In five of the markets Wal-Mart has increased annual spending among women-owned businesses more than 21% from 2012 to 2015.

A law passed in the most recent legislative session is meant to help the state attract aviation business that was flying away because of a sales tax Arkansas levied that other states didn’t.

Act 1182 by Rep. Joe Jett, D-Success, enacts a “fly away” provision exempting from taxes aircraft sales where neither the seller nor the buyer are located here.

Cheri McKelvey, vice president and co-owner of Air Resource Group, a Little Rock-based aviation company with an office in Springdale, said all of the planes she has brokered between out-of-state customers have flown to another state that did not charge the sales tax, often Kansas, to finalize the deal.

McKelvey said the absence of those planes means Arkansas companies have been missing out on performing the upgrades that follow. Moreover, the existence of the tax has made Arkansas less likely to attract aircraft transactions between out-of-state clients despite its desirable central location.

Companies and individuals often do business based on an individual state’s tax laws. Aviation is different because of the ease with which the product can be moved to take advantage of those laws, she said.

“It kind of levels the playing field for us, actually, to be able to do more for an airplane buyer or seller,” she said.

Chad Causey, executive director of the Arkansas Aerospace and Defense Alliance, said of the law, “We’re excited about it. We think it’s a big win that will have a big impact on the aerospace industry here in Arkansas.”

The aerospace industry employs about 5,400 Arkansans at 45 repair stations and 80 fixed base operations, according to the National Business Aviation Association. Arkansas aviation companies include Dassault Falcon Jet, Lockheed Martin, Triumph Group and Rose Aircraft Services.

Jett, a certified flying instructor, said the provision is revenue neutral because Arkansas wasn’t earning any sales tax revenue beforehand on the lost sales. He said the added business will raise funds for the state’s Department of Aeronautics that can be leveraged with federal grants to raise money for safety and economic development around airports.

The law also clarifies that taxes on repair parts and labor will not be levied for work done on airplanes rated with a gross takeoff weight of 12,500 pounds “or more.” The previous law covered planes that were “more than” 12,500 pounds, which meant a number of popular aircraft models were being taxed for maintenance, repair and overhaul work.

Jett said he hoped the revenue from the additional aircraft business could lead to reduced aircraft fuel taxes in the future.

The four members of Arkansas’ delegation in the U.S. House of Representatives took to the House floor for more than eight minutes Tuesday evening to honor the memory of former U.S. Rep. John Paul Hammerschmidt, who died April 1. He was 92.

A video of the remarks can be found in this post.

Hammerschmidt, the long-time and popular Congressman of Arkansas’ 3rd Congressional District and one of only two Republicans to defeat Bill Clinton in an election, has died. He was 92. Hammerschmidt, a Republican from Harrison, defeated Democrat and popular U.S. Rep. Jim Trimble in 1966 to capture the seat. He held the District until retiring in January 1993, having worked with six U.S. Presidents. For most of his years in Congress, Hammerschmidt was the only Republican in the Arkansas Congressional Delegation.

In addition to securing hundreds of millions of dollars for critical infrastructure projects in the state, Hammerschmidt was an active legislative sponsor in creating the Buffalo National River area for inclusion into the national parks system. He began pushing during his freshman year in Congress to protect the river from plans by the U.S. Corps of Engineers to dam the river. His tough battle with the Corps was successful, and in 1972 the bill designating the river as part of the National Park Service was signed by President Richard Nixon.

‘GOLD STANDARD’
On Tuesday, U.S. Rep. Steve Womack, R-Rogers and who holds the 3rd District seat, was the first to speak, and reminded the Republican-majority body that Hammerschmidt in 1966 was the first Republican in Arkansas elected to the House in 93 years. Womack also noted that during his 26 years in Congress, “John Paul never spent a single day in the majority, but he didn’t let that stand in the way of serving his constituents to the best of his ability.”

“He worked with all colleagues, Democrat and Republican alike, to our state’s benefit,” Womack said, adding that Hammerschmidt is also known for his “gold standard” reputation in constituent service.

After a moment of silence, U.S. Rep. Rick Crawford, R-Jonesboro, said Hammerschmidt was a “visionary champion for Arkansas’ conservative values in Congress,” and was a “supremely successful ambassador for his district, and in fact the entire state.”

U.S. Rep. French Hill, R-Little Rock, noted that one of Hammerschmidt’s most important actions was ensuring that the Buffalo River was the country’s first national river, and thus protecting it from a Corps of Engineers’ plan to dam the river. Hill also said Hammerschmidt was a close friend with former President George Bush. Hammerschmidt and Bush were freshmen members of the House in 1967.

“President Bush once said of John Paul, ‘He did something I could never do: beat Bill Clinton,’” Hill said.

U.S. Rep. Bruce Westerman, R-Hot Springs, said Hammerschmidt was a “tireless advocate” for citizens on “both sides of the aisle.”

HAMMERSCHMIDT BIO

Hammerschmidt was born May 4, 1922 in Boone County, Ark., and graduated from Harrison High School in 1938. His family was in the lumber business.

He attended The Citadel in Charleston, S.C., in 1938-1939, and the University of Arkansas in 1940 and 1941. After his Congressional career, Hammerschmidt would complete a master’s program at Canbourne University in London, England.

During World War II, Hammerschmidt was a pilot with the U.S. Army Air Corps and flew cargo planes over the famous but treacherous “Burma Hump” in southeast Asia. He remained a member of the U.S. Air Force Reserves between 1945 and 1960. He was awarded the Distinguished Flying cross with three oak leaf clusters, the Air Medal with four oak leaf clusters, three Battle Stars, the China War Memorial Medal (by the Republic of China), and the Meritorious Service Award. He retired from the Air Force reserve as a major.

His private sector work included being president of Hammerschmidt Lumber Co. in Harrison, president of the Arkansas Lumber Dealers Association, and president of the Southwestern Lumberman’s Association.

Hammerschmidt also served on the Board of Directors of Southwestern Energy Co., Little Rock-based Dillard’s, First Federal Bank, the University of the Ozarks (Clarksville, Ark.), and the Washington (D.C.) Metropolitan Airports Authority Board.

He was a delegate to the National Republican Convention in 1964, 1968, 1972, 1976, 1980 and 1984. His other political service includes being a member of the Harrison City Council.

After several months of research, surveys and meetings by city staff and the Fort Smith Planning Commission, a draft of a new ordinance regulating mobile food trucks was presented to the Fort Smith Board of Directors.

Wally Bailey, director of development services for Fort Smith, presented the proposed new rules Tuesday (April 28) during a Board study session. He said the “regulatory and financial incentives” in the new language were one of the changes recommended by an 18-month study that resulted in the Fort Smith Comprehensive Plan.

Specifically, the new rules would allow mobile food trucks in the downtown Fort Smith area, which is zoned C-6, and in “moderate” use industrial areas zoned I-2. Overall, the key areas reviewed by the Commission and city staff have been length of permits; products/foods permitted, permit fees, types of vehicles permitted/allowed, and relocation requirements/flexibility.

In meetings prior to Tuesday, Bailey has said the city’s rules are “antiquated” and more restrictive than most cities, and more so than rules among a group of eight cities he and other city staffers have reviewed. The cities reviewed are Bentonville, College Station, Texas, Fayetteville, Lee’s Summit, Mo., Little Rock, and Tulsa. College Station and Lee’s Summit were reviewed because of similar population, Bailey said.

Bailey told the Board that the draft ordinance was crafted with numerous rounds of input, including eight Planning Commission meeting, a direct survey of downtown Fort Smith property, a Facebook survey and meetings with the Central Business Improvement District.

State law, according to Bailey, restricts mobile food truck use on Garrison Avenue, the center of downtown Fort Smith. The avenue is a state highway. However, he said a survey of the downtown area showed more than 390 spaces for mobile food trucks. Bailey said not all the spots are ideal, but room is available.

Key features of the new ordinance include:
• Downtown parallel parking spaces for mobile foods trucks would be available from 9 p.m. to 2 a.m. to capture after hours customers after restaurants close;

• Exemption of non-profit events if operating at a site less than five consecutive days;

• Mobile trucks must be at least 300 feet from a public or private school;

• Permits would be issued annually instead of just for 120 days, with the annual permit also allowing for multiple locations; and

• Insurance with higher coverage levels for mobile food trucks operating in a public right of way.

At last review, there were 29 mobile food vendors licensed in Fort Smith, and Bailey said response to the proposed new rules indicates some food truck owners not operating in the city would come to town if the new rules are adopted.

There were some questions from the Board about insurance requirements and hours of operation, but most seemed comfortable with the new rules. City Director Mike Lorenz thanked the city staff and Commission for taking the time to develop the new rules.

The Board is scheduled to vote on the ordinance during a May 19 regular meeting.

Sitting atop a Harley at Old Fort Harley Davidson, Dawson Meadows reports on taking a catwalk, walking past cherry tops and grabbing a handful. It somehow had something to do with providing a preview of the upcoming Steel Horse Rally set for May 1-2 in downtown Fort Smith.

Four charities, a “Thunder Through The Valley” parade in downtown Fort Smith and potentially 5,000 motorcyclists are expected to be part of the inaugural Steel Horse Rally.

This week’s report also includes Gov. Asa Hutchinson’s appearance on “Meet The Press” to discuss the Clintons and same-sex marriage, and the mixed start for Fort Smith area hospitality tax collections in 2015.

The Video Wire is a collaboration between The City Wire and Things to Do in Fort Smith.

Organizers, area business owners and city officials will be working and watching this weekend to learn how the inaugural Steel Horse Rally may set the stage for the rally’s potential in future years. The event is set for the upcoming weekend (May 1-2) in downtown Fort Smith, with a spectator’s row, Biker Vendor Village, live music and an estimated 5,000 participants.

Event organizers and backers say the rally could grow to be one of the largest motorcycle rallies in a several state region. They have noted that the large and successful Bikes, Blues and BBQ rally in Northwest Arkansas had modest beginnings. (Michael Tilley, a co-owner of The City Wire, is on the Steel Horse Board of Directors.)

The event is geared toward honoring members of the military, veterans, police and firefighters and first responders. The rally also helps local charities including the Gregory Kistler Treatment Center, The Arkansas Veterans Home, The Fort Smith Museum of History and the Darby Legacy Project.

“As bikers, this is our way of saying thank you to those who have bravely served,” said Dennis Snow, president of the Steel Horse Rally Inc. “As a veteran, it makes me proud to see so many people taking pride in our community and thanking our military, veterans, law enforcement and first responders. This is a great opportunity for everyone to come out and be part of the Steel Horse Rally.”

Tickets are only $10 per person per day or $15 for the entire weekend, and there is free parking. Tickets are available May 1-2 at the gate at Harry E. Kelley Riverfront Park in downtown Fort Smith near the Arkansas River.

Event organizers estimate that 200 people will have volunteered to support the event by the end of the weekend. The group plans to recognize a top volunteer with the “Bert Wright Spirit of the Rally” award. Organizers are also receiving good feedback on possible attendance.

“As far as turnout, we are expecting a huge number of bikers coming into town. Two local hotels told us last week that they are sold out of rooms for the weekend, something that normally doesn't happen for that weekend,” said Karen Snow, secretary for Steel Horse Rally Inc. “We know bikers from at least 15 different states have already made reservations and will be attending. There are groups coming from Dallas, Memphis and even Michigan.”

Vendors and booth exhibitors include:
• Vendors that make custom leather products and have illuminated signs;
• Steel Horse Rally official merchandise booths featuring official Steel Horse Rally T-shirts and patches;
• Tattoo Alley at the Steel Horse Rally in the Riverfront (Glass) Pavilion will feature award-winning tattoo artists who will do tattoos for people attending the rally;
• Representatives from the U.S. Marshals Museum and the Museum of Military History in Russellville;
• The Hellfighters of Fort Smith will have the same trailer and items that bikers may have seen at large rallies like Sturgis and Daytona;
• There will be new vehicles on display from Breeden Auto Group, one of the sponsors of the Steel Horse Rally; and
• Food vendors will include The Movie Lounge, BBQ, Bruce Terri Catering, funnel cakes, and Dhat Dher Beef Jerky.

THUNDER THROUGH THE VALLEY
A key feature of the event will be the “Thunder Through The Valley” motorcycle parade held Saturday afternoon and will see motorcycles travel from Fort Smith Park to downtown Fort Smith. The parade will include bikers representing different branches of the military and those who served overseas and in combat operations.

“The Steel Horse Rally Motorcycle Parade is dedicated to veterans, law enforcement, military and first responders and is free and open to all riders no matter what kind of motorcycle or trike that they ride. The parade will also features bikes of every shape, color and design, including several antique and custom bikes that have graced the cover on national and international magazine publications,” noted a statement from the Rally organization.

Staging for the parade will begin at Fort Smith Park at 4 p.m. There will be a group photo at 4:40 p.m. at Fort Smith Park. Then at 5 p.m. riders will go ‘kickstands up” and head down Riverfront Drive (formerly Clayton Expressway) to downtown Fort Smith. Places to view the Steel Horse Rally Motorcycle Parade include Spectator’s Row at the Biker Vendor Village area, across from Pavilion along A Street.

Garrison Avenue through historic downtown Fort Smith will be another place to watch the motorcycle parade and take photos. Specifically, the area around Garrison and 10th Street will be a turning point on the parade route.

For safety reasons and to facilitate the parade, portions of streets and intersections near the parade route will be temporarily blocked, with that work coordinated b the Fort Smith Police Department and the Fort Smith Fire Department.

“Considering that this is the inaugural event we have no way to determine just what kind of participation to expect, so we have no idea how long the motorcycle procession will take and subsequent affected areas closed and re/routed. We ask that motorists in the general downtown areas be patient and plan ahead,” noted a memo from Daniel Grubbs, public affairs officer with the Fort Smith Police Department. (Link to the Steel Horse Rally website for traffic changes during the event.)

“We really appreciate all of the help from the Fort Smith Police Department, Fort Smith Fire Department and other city department,” Snow said. “This event wouldn’t be possible without the support of local sponsors and our dedicated team of Steel Horse Rally volunteers.”

Following is the event agenda.
FRIDAY (MAY 1)
Noon - gate open for live music at Harry E. Kelley Riverfront Park
3 p.m. - .357 (band)
5. p.m. - Trouble Makers (band)
7:30 p.m. - Scott Ellison (incredible blues artist)
9:30 p.m. - Back Road Anthem

SATURDAY (MAY 2)
9 a.m. - gates open
9:30 a.m. to 11:30 a.m. - Birds of Prey Exhibition by the Ark. Native Plant & Wildlife Center
Noon to 1:30 p.m. - Terri & the Executives (band)
2 p.m. - Vertical Groove
4 p.m. - Break for the Thunder Through the Valley Steel Horse Rally Motorcycle Parade
5 p.m. - Parade begins
6 p.m. – White Collar Sideshow (band)
7:30 p.m.  - 2015 Miss Steel Horse Rally Bikini Contest presented by Old Fort Harley-Davidson
8:30 p.m. - Steel Horse Rally All-Star Band
10:30 p.m. - Hillbilly Vegas