Arkansas Carry will again take its message to the street that Arkansas is now an “open carry” state.

On Aug. 24, between 25 and 30 people with a handgun holstered to their side walked along Massard Road in Fort Smith in the first organized open carry handgun walk in Arkansas.

Arkansas Carry, a group advocating for fewer restrictions on gun possession laws, believes Act 746 allows for open carry of a handgun in Arkansas. The Act, which made technical revisions to Arkansas’ gun laws, was approved in the recent General Assembly.

However, Arkansas Attorney General Dustin McDaniel issued an opinion on July 8 saying that Act 746 does not make legal the open carry of a handgun. McDaniel said just because someone may be going on a journey, which is defined as "beyond the county in which the person lives," it does not mean that they are able to openly carry a firearm on his or her waist.

Obviously, the leadership of Arkansas Carry disagrees with McDaniel’s opinion. The second walk is planned for 9 a.m., Sept. 7, on Main Street in Van Buren between Cane Hill Street and North 20th Street. The group plans to meet in the parking lot of the Van Buren Public Library.

“In an effort to continue raising awareness of the changes in Arkansas law in the recently passed Act 746 of 2013, members of Arkansas Carry and our supporters will hold a peaceful and lawful awareness walk in Van Buren, Arkansas in Crawford County on September 7, 2013,” noted a statement from Steve Jones, board chairman of Arkansas Carry. “The purpose of this awareness walk is to demonstrate that Act 746 has decriminalized the possession of a handgun in plain view if a person does not intend to use that weapon unlawfully.”

Jones’ announcement included a letter from Crawford County Prosecuting Attorney Marc McCune in which the Prosecutor explains his disagreement with McDaniel’s opinion.

“I, along with several other elected PA's, do not agree with the AG's opinion. We believe that your mental state ‘purpose to attempt to unlawfully employ’ will be the determining factor whether or not a person's open carry is illegal. For example, Saturday's open carry demonstration in Fort Smith, no one was arrested for simply openly possessing the firearm,” McCune wrote.

McCune further explained that an officer could place the agency and local government in a “wrongful arrest lawsuit” if arresting someone carrying a handgun as a right or for self-defense.

“My office will not be prosecuting these cases unless we can prove the mental state: ‘for use with a purpose to attempt to unlawfully employ the handgun,’” McCune said.

McCune’s interpretation is similar to that of Fort Smith Prosecuting Attorney John Settle. Fort Smith Police Chief Kevin Lindsey has said the department “would not enforce the terms of the Act” based on McDaniel’s opinion. Lindsey said he was told by Settle, Fort that “just carrying it unconcealed is not enough” to cause an arrest.

The Fort Smith Board of Directors and the Sebastian County Quorum Court voted Tuesday (Sept. 3) to hire Flintco as construction manager for the Ben Geren Aquatics Center for a fee of $371,250 divided our between a pre-construction fixed services fee of $37,500 and a construction services phase fee of $333,750.

The overall project cost is estimated at around $8 million.

Approval of the Flintco hiring was not without heartburn over ethical concerns with the company by some of the elected officials who voted no on the hiring.

Flintco was recommended to both bodies by a committee comprised of county and city officials, including County Judge David Hudson and City Administrator Ray Gosack. The recommendation came in the midst of allegations and eventual pleas of guilty to bribery charges associated with the construction at a Choctaw Casino location in Durant, Okla.

According to an Aug. 5 report in the Tulsa World, six individuals have plead guilty in connection to the investigation, including Cordell Alan Bugg, a former vice president of pre-construction services. The World report states that some of the bribes included "lavish trips by private jet, vehicles, hunting and golf trips, an African safari, firearms," and more than $1 million in expensive gifts, including at least $855,000 spent at Louis Vuitton.

According to a memo from Deputy City Administrator Jeff Dingman, Flintco launched an internal investigation into alleged breaches of the company's business ethics policies even before knowing about a federal grand jury investigation which had already been underway. A statement from Flintco said two employees were eventually let go from the company as a result of the investigation, while a third had already left.

Even with the cloud hanging over the company, Hudson said he had the full faith and confidence that the company, which recently completed construction of the city of Rogers' aquatic park, would be able to do a quality job using ethical business practices.

"In evaluating this matter, the integrity and reputation of the Flintco management, based upon experience and track record, continues to be demonstrated in forthrightness and the deliberate manner in which this issue has been addressed by the company," he said.

While the bribery case was strictly limited to staff in Flintco's Tulsa office, and not the Springdale office that will be used for the Ben Geren project, Fort Smith Director George Catsavis was not convinced that moving forward with Flintco was a wise decision.

"This company's had some legal issues, and I'm just not going to get in bed with them. … It's a possibility (that the bribery may have been isolated), but still, I believe in supporting our local business and I know that there's two companies here that can do that job," he said. "And if they're employing Fort Smith people that spend their money here and live here, then that's the way I'm going to do it."

Philip Merry echoed those sentiments, advocating for the use of SSi, which just this year completed the construction of a water park facility in Clarksville, which had a similar budget to the $8 million budget approved by the Board and the Quorum Court.

"They are local. I do not know why we would not want to stress that versus a Tulsa-based firm," he said. "If there's a branch office in Springdale, odds are the head of that branch spends an awful lot of time in Tulsa, Okla. … I go out of town when I can't find what I need locally. But when it's here locally, why can't we go to Structural Systems Incorporated? They're local. They've done it."

A point Merry made was pointing to SSi's customer service, adding that when a flaw was discovered at the Clarksville facility, the company made it right at no extra charge.

"I think there was a minor leak issue and they fixed it and now that the water's out, they're going to majorly fix it at not one penny more to Clarksville. ... So they're already proven to stand behind it if something happens."

Merry and Catsavis joined Director Pam Weber in voting against hiring Flintco.

Justice of the Peace Danny Aldridge was one of eight Quorum Court members to vote in favor of hiring the company, adding that concerns about ethics and previously expressed concerns about the possible quality of construction would be solved with one section of the contract approved tonight.

"So if these apparent problems that they've had in other areas do spill over into this project, because this says, 'Disregards applicable laws, statutes, ordinances, codes, rules or regulations or public authority,' we can have a way to get out of this. And it's withholding funds, among other things, until it is completed by someone else we select. So I would hope there is nothing that would come forward, but in the event it does, we have a way to get out and we also have an surety bond for the $8 million to protect us the best it can."

JPs voting against the contract were Tony Crockett, Phil Hicks, Shawn Looper, Linda Murry and John Spradlin.

With the contract now approved by both bodies, Hudson said he was ready for Flintco and aquatics center designer Larkin Aquatics to formally begin work tomorrow for an eventual Memorial Day 2015 opening.

"It will happen, most likely, tomorrow," he said, adding that the companies were already sharing information related to the project on the assumption that the contract would be approved.

Arkansas tax collections are off to a good start in fiscal year 2014, and follow a fiscal year 2013 during which collections marked the third consecutive year of increases.

Year-to-date gross revenue (July 2013-Aug. 2013) totaled $910.6 million, 2.9% above the same period last year and above forecast by 1.2%, according to the report issued Wednesday (Sept. 4) by the Arkansas Department of Finance and Administration.

Individual income taxes for the fiscal year totaled $395.8 million, down 1.5% from last year and 2.1% below the budget forecast.

Year-to-date sales and use tax collections were $380.5 million, up 6.9% above last year and 2.3% above forecast. The corporate income tax collections for the first two months of the year totaled $32.8 million, up 10.7% compared to last year and 8.7% above forecast.

August gross revenue was $443 million, up 4.6% above last year and 1% above forecast. Sales and use tax collections during the month totaled $194.5 million, up 9.3% from last year and 4% above forecast.

“August results were boosted by one-time Sales tax audit payments and better than expected Corporate Income tax collections. Weakness in Individual Income tax partially offset these increases. Additional reporting periods should determine whether this weakness is part of a trend or a temporary payroll timing issue,” John Shelnutt, head of the Department of Finance and Administration’s Economic Analysis & Tax Research division, said in the report. “Among smaller revenue sources, tobacco and gaming results also exceeded forecast.”

Year-to-date and August growth in sales and use tax collections are welcome news. The sales and use tax collections, considered a barometer of consumer confidence, ended fiscal year 2013 on a down note. Collections in the segment for the fiscal year totaled $2.124 billion, up just 1.1% compared to the 2012 period, and 1.4% below forecast.

Shelnutt in early July said the slight gain in fiscal 2013 sales tax collections reflected “limited economic growth in wage income, higher payroll tax withholding at the federal level for social security tax, federal sequester spending cuts in government payrolls, and limited growth in taxable business activity.”

OTHER TAX COLLECTIONS
Alcoholic beverage
July 2013 - Aug. 2013: $9.4 million
July 2012 - Aug. 2012: $8.8 million

Games of skill
July 2013 - Aug. 2013: $6.3 million
July 2012 - Aug. 2012: $3.7 million

Tobacco
July 2013 - Aug. 2013: $38.4 million
July 2012 - Aug. 2012: $39.6 million

Insurance
July 2013 - Aug. 2013: $20.7 million
July 2012 - Aug. 2012: $19.6 million

COLLECTIONS HISTORY
Tax collections during fiscal year 2013 (July 2012-June 2013) totaled $6.214 billion, up 4.9% above the previous fiscal year and up 2.5% compared to budget estimates. One result of the gains was a budget surplus of $299.5 million.

Fiscal year 2013 marked the third consecutive year of year-over-year gains. Arkansas tax collections reversed a negative two-year slide in the 2011 fiscal year, with collections up 4.5% in the July 2010-June 2011 period.

State tax collections for fiscal year 2011 totaled $5.673 billion, up 4.5% above the $5.43 billion in the 2010 period.

The biggest declines in the 2009 and 2010 fiscal years were with individual income tax collections and sales and use tax collections.

Former President Bill Clinton used the forum of his Presidential Library to advocate for the Affordable Care Act, which hits a major milestone on Oct. 1 when health insurance exchanges open a new online marketplace.

Introduced by Mara D’Amico, a Clinton School student who revealed she has a pre-existing condition – Type I diabetes – she also noted that she would be losing her parents’ health insurance coverage when she turns 27 years old later this year. Pre-existing conditions and extended student coverage are two key provisions of the health care law.

Clinton said he has had an active interest in health care improvement since the days of his first elected office as Arkansas Attorney General. Clinton said studying the issue of Medicaid fraud in nursing homes as AG sparked his initial interest in the subject.

As Arkansas Governor, he noted that seeing rural communities with “virtually no access” to health care also encouraged him to push for changes to the health care system.

“I’ve been involved in this subject for a long time,” said Clinton, who failed to achieve a massive national overhaul during his two terms as President.

FOLLOWING THE FEDERAL LAW
Clinton spent his speech at the Clinton Center chronicling the positives and negatives of the current federal law, the Affordable Care Act. He also promoted Arkansas’ “private option” plan and, in prepared remarks, recited the mechanics of how citizens can access the forthcoming options in Arkansas.

“I’m still amazed at how much misunderstanding there is about our current system of health care,” Clinton said. “We’d be better off working together to make the health care law work rather than fighting the same old battles.”

Clinton cited 6 reasons why the Affordable Care Act should be followed and possibly improved:
• It’s better than the current system;
• It gives states a chance to provide plans that work locally;
• Not cooperating means states’ funds will go elsewhere;
• The problems with the current law can be solved;
• It gives the best chance ever for universal coverage, lower costs; and
• It is the law.

“We’ve all got an interest in trying to faithfully execute the law,” Clinton said.

Clinton argued that lowering health care’s percentage of GDP from its current point of 18% to 12% – which would be in line with other advanced countries – would inject $1 trillion back into the American economy.

“That’s money that could be spent on pay raises or investments in businesses,” he said.

WHAT COULD GO WRONG?
Clinton discussed problems he sees in the federal law and called on a bipartisan approach to fixing them.

He noted that workers with modest incomes – in the $20,000 to $30,000 range – may be eligible for health insurance through their employers, but their families may not qualify. Subsequently, because a household income may be too high to qualify for low-income help, Clinton said spouses and children may not be eligible for coverage.

“It’s obviously not fair,” said Clinton. “If this is the only unintended consequence of the law, it needs to be fixed.”

Clinton also said tax credits for businesses need to be expanded and more generous. He noted that a small business with fewer than 50 full-time workers isn’t required to provide health insurance. If more tax credits were designed properly and provided, those smaller firms could also be inclined to join the health insurance pools.

Thirdly, Clinton said the U.S. Supreme Court decision to allow states to opt in or out of Medicaid expansion participation needs a solution.

“The law said that the federal government would run an exchange if states didn’t,” he said. “But they never dreamed anyone would turn down the Medicaid money.”

About half of the states have opted not to receive Medicaid expansion funds. Clinton said this means low income workers below 138% of the federal poverty level may not qualify for any health insurance options.

“This is a serious problem,” Clinton said adding that it would increase uncompensated care.

In his closing remarks, Clinton called for a bipartisan approach to solving the issues he outlined. He said there was no room for those “rooting for reform to fail and refusing to fix relatively simple matters.”

He cited the Arkansas legislature’s “private option” approach as a blueprint for federal fixes.

“I hope Congress will follow the lead of many, many Republicans and Democrats at the state level and try to implement this law,” said Clinton. “The health of our people, the security of our families, and the strength of our economy are dependent on getting health care right.”

POLITICAL PINATA
The federal health care law has been a political pinata in Arkansas. Republicans have made it a central focus in campaigns at the local, state and national levels and opposition to Obamacare has helped them score major gains.

Since 2010, the GOP has picked up county government and state constitutional seats, reversed the Congressional delegation from a 5-1 deficit to a 5-1 advantage, and earned a majority in both chambers of the Arkansas legislature for the first time since Reconstruction.

In the 2014 elections, health care promises to be another central campaign theme. Sen. Mark Pryor, D-Ark., has stood by his vote for the federal law and enumerated reasons why it is working and should be improved. His opponent, U.S. Rep. Tom Cotton, R-Dardanelle, has called for a full-scale repeal of Obamacare.

In the Governor’s race, Democrat Mike Ross has gone to great lengths to distance himself on the issue, claiming he is the only candidate who “voted against Obamacare.”

Republicans contend a 2009 vote he cast in a House committee could have halted the law, but there were more than enough votes with or without Ross’ vote for the measure to move to the full House. It was ultimately not the bill voted on by House members.

Arkansas lawmakers have also struggled with the health law’s implementation. Democrats joined a split faction of Republicans in supporting the “private option,” a GOP-crafted plan that allows the Medicaid expansion dollars from the Affordable Care Act to be used in a private health insurance exchange for low-income workers. Details of the exchange, including crucial pricing options for health plans, are expected to be revealed next week by Arkansas insurance officials.

The private option is likely to be a contentious issue in Republican primaries next spring, and it is certain to be a major campaign debate among state, legislative, and federal races in the 2014 general election.

Building permit values were a combined $17.67 million in Fort Smith, Greenwood and Van Buren for the month of August, up 61.31% from the same period last year. Last month's increase also shows an uptick from July, with a 21.73% jump in combined permit values in the three cities.

For the first eight months of 2013, combined permit values totaled $124.687 million, an increase of 44.01% from the same eight month period in 2012.

FORT SMITH
The city of Fort Smith had a total of 158 permits issued last month for a total value of $16.753 million.

Of those permits issued, the most valuable permits were issued for building expansions at $5.379 million.

The largest of the expansions was a $4.279 million expansion at Umarex, a firearms manufacturer located at 7700 Chad Colley Boulevard at Chaffee Crossing. The expansion is part of a multi-phase expansion, according to Umarex President and CEO Adam Blaylock. The building permit issued in August was for phase two.

Once all three phases are complete, the more than $7 million in improvements to the Chaffee Crossing campus will allow for both Umarex and Walther Arms, the company's sister company, to be housed at the same location, Blaylock said.

Another major commercial project approved for a permit during the month of August was the softball field additions at Ben Geren Regional Park. The fields, which are being built by the city of Fort Smith and managed by Sebastian County's parks and recreation department, were issued a permit valued at $1.232 million.

In all, 35 commercial permits accounted for $11.506 million in value.

On the residential side, 93 permits were issued with a total value of $3.78 million. Of those, only nine were new construction at a value of $3.068 million while 51 repair permits valued at $277,547 were issued.

One of the residential permits issued included a new home located at 7003 Hestand Lane valued at $1.057 million. FFH Construction and Jake Files are listed as the contractors for the project.

GREENWOOD
Greenwood's construction permits were limited to three projects valued at $162,631. Of those, one was a commercial remodel or repair valued at $15,231, one was a new home valued at $121,400 while the remaining permit was for a new swimming pool, valued at $26,000.

VAN BUREN
Permits in the northern part of the Fort Smith metro area were driven by new residential construction.

The city of Van Buren issued 10 permits valued at $574,300 for new single family home construction.

The values for the city in August represent a significant increase from July, when only $251,000 in building permits was issued. In total, the month-to-month increase from July to August was 200.2%.

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%.

Oklahoma Gas & Electric Company on Tuesday (Sept. 3) joined Oklahoma Attorney General Scott Pruitt in challenging a ruling by the Denver-based 10th Circuit Court of Appeals that would allow the Environmental Protection Agency to impose strict pollution regulations on the state.

OG&E officials contend the EPA mandate will result in higher costs for all customers in the utility’s network.

Residential customers as a group would likely face the bulk of increased costs. Operating revenue for OG&E for the first half of 2013 from residential sales was $402.3 million, or just short of 40% of the total operating revenue of $1.03 billion. Commercial power sales were 24.46% of total operating revenue.

In a telephone conversation from the company's Oklahoma City headquarters, Spokesman Brian Alford said the EPA was not allowing the state to implement its own plan to reduce sulphur dioxide emissions as required by the Clean Air Act.

"Each state was required to put together a plan to outline how it would reduce its emissions," Alford said. "Oklahoma put out a plan that continued to use coal (in power plants), but at the same time used more natural gas and other technology to remove emissions."

The EPA rejected the plan, which was meant to comply with the CAA's "regional haze rule."

The state fought the EPA's actions, but a 2-1 panel of appellate judges on the 10th Circuit ruled in favor of the EPA. Now the state is wanting a full hearing before the 10-member appeals court.

“Our appeal for a rehearing before the full 10th Circuit gives us an opportunity to continue the fight to preserve the state’s ability to create an Oklahoma solution to address regional haze,” Pruitt said in a statement. “Regional haze is about improving visibility, not about health. The Clean Air Act clearly gives states a primary role in implementing regulations to address regional haze. Oklahoma leaders crafted a commonsense plan to meet the goals of the Clean Air Act without imposing unnecessary rate hikes on Oklahomans. The EPA was wrong to ignore the Oklahoma plan and impose a federal plan.”

Alford said implementing the EPA's plan instead of the state's plan would impact not only OG&E, but also customers in Arkansas and Oklahoma who depend on OG&E for power.

The reason customers would be affected is due to the EPA's desire to put in place rules that would require the company install scrubbers, or emission control technologies, at four of the company's five coal-powered units, Alford said.

"We estimate the financial impact of that to be $1.2 billion," he said. "Our position is that the state of Oklahoma put forward a plan that achieves the same outcomes but for far less cost to the customer."

Coal is a large part of the company’s power production. According to the OG&E’s recent 10Q filed with the U.S. Securities and Exchange Commission, production cost 3.218 cents per kilowatt hour for the six month period ended June 30, higher than the 2.701 cents in the same period of 2012. Of that cost, 2.295 cents was from coal power, above the 2.26 cents in the same period of 2012.

Should the appeal not be heard before the 10-member appeals court, or should the hearing not result in a favorable outcome for the state and OG&E, Alford said customers are the ones who will be on the hook for the installation of the scrubbers at the company's power plants.

"If we are unsuccessful at the 10th Circuit, it's like the clock will begin running for completion of the emission control technology, which is 55 months," he said. "We would expect over the course of that 55 months is when customers would see those increases. Our goal would be to have incremental adjustments over that time horizon versus rate shock at the end of 55 months."

OG&E supplies power services to over 800,000 customers, with about 80,000 living in the state of Arkansas, Alford said.

While no timeline for a decision has been reached, Alford said he expects a decision "in the not-to-distant future - sometime in the next several months."

Investors have not yet backed away from company share, although the price has dipped in the past three weeks. Shares of OG&E closed Wednesday at $35.16, up 39 cents. During the past 52 weeks the share price has ranged from a $39.55 high to a $26.84 low.

The Food Safety and Inspection Service said Friday (Aug. 30) that it has cleared the way for some fully-cooked chicken and turkey to be exported from Chinese processors into the United States. FSIS is a division of the U.S. Department of Agriculture and oversees poultry exports and imports as well as all domestic poultry processing.

The announcement comes on the heels of thorough plant inspections in China which took place in March. After several months of implementing minor changes, the F.S.I.S. deemed China’s poultry processing procedures to be on par with that in the U.S.

FSIS officials said certified establishments in the China may begin exporting processed (heat-treated/cooked) poultry products to the United States under certain conditions.

Initially, Chinese plants that get certification can ship cooked poultry for sale in the U.S. But one major stipulation is the cooked chicken and turkey must have been raised in the U.S. and Canada. In other words, U.S. processors would have to ship raw poultry to Chinese processors who then cook it and sell back to the U.S.

Industry trade groups in the U.S. applauded the USDA’s move to open up trade even at this limited level because it is a show of good faith in what has been contentious trade relations between domestic and Chinese poultry groups for several years.

The USA Poultry & Egg Export Council (USAPEEC) told The City Wire it welcomes last week’s announcement by FSIS that reaffirms the equivalence of China’s inspection system for processed poultry.

This is the culmination of more than six years of efforts led by USAPEEC and a coalition of industry organizations, including the National Chicken Council, the National Turkey Federation and the American Meat Institute, said Toby Moore, spokesman for the trade group.

Moore said the group firmly believes that recognition of China’s inspection system as equivalent to that of the U.S. will go a long way toward mending trade relations with China that have surfaced as a result of unfair and unjustified comments by organizations and politicians without a full understanding of the science or technical issues at hand.

“When it comes to China, one of the world’s largest economies, we have much more to gain than we have to lose. Does the U.S. welcome additional poultry imports? Not really, but then our industry is confident in its ability to compete effectively and efficiently in a global marketplace, and would much prefer to exist in an environment that is unconstrained by protectionism and artificial trade barriers. Free and open trade must mean free and open trade for all,” Moore said.

Cargill operates large turkey processing facilities in Springdale and Ozark and spokesman Michael Martin said those operations do help the company export some turkey to China.

“China has had a long-standing desire to export processed poultry to the U.S. and we view this as a positive development for greater free trade in the protein sector between the U.S. and China in the future,” Martin said.
 
Tyson Foods, the nation’s largest chicken processor, declined comment on the issue but rather deferred to it’s trade organization, the National Chicken Council.

China is a big customer for Tyson Foods, representing 27% of the company’s total international chicken sales last year. Tyson reported poultry sales to China worth $621 million in fiscal 2012. That includes exports to China and sales generated with Tyson’s in-country operations there.

“We certainly don’t look forward to many more imports, but we also realize free trade is a two-way street,” said Tom Super, spokesman for the National Chicken Council.

He said the industry hopes that China will look a little more favorably on U.S. chicken products and other agriculture imports in the future, following this move by the U.S. The U.S. poultry industry has been profitable this year thanks in part to strong exports to Mexico and elsewhere. But exports to China have carried hefty duties since the country imposed anti-dumping taxes to the incoming poultry products from the U.S. in 2010.

Last month the U.S. won its case with the World Trade Organization on behalf of chicken companies proving that China’s imposition of higher duties is “unjustified under international trade rules.” Super said after the duties were levied American export of chicken products to China dropped by 80%.


“A WTO dispute settlement panel agreed with the United States, finding that China violated numerous WTO obligations in conducting its investigations and imposing anti-dumping duties and countervailing duties on chicken imports from the United States,” Super said.

Moore said China has 45 days to appeal the WTO ruling but he is hopeful the recent actions by the FSIS will be viewed favorably and ease the challenging relations.

In 2011, U.S. trade officials said poultry sales to China were worth about $600 million a year. According to the U.S. Department of Agriculture, U.S. broiler chicken product exports were worth $3.1 billion in 2010, making up nearly 20% of all poultry exports.

Food Safety activists do not approve of the U.S. importing any of its food supply from China because of a stained track record the nation has had with tainted product. They said it will be impossible for U.S. consumers to know if the chicken they consume was processed in the U.S. or China, because the raw product will have originated in the U.S. or Canada there are no Country of Origin Labeling required.

FSIS officials said imported Chinese chicken will not be used by schools and federal food programs.

While Fort Smith has shed thousands of manufacturing jobs over the last several years, two companies with operations at Chaffee Crossing have found themselves to be not only stable, but growing in this tough manufacturing climate.

One company that has positioned itself along the route that will eventually flow through the former military installation is Graphic Packaging, which opened its 300,000-square-foot facility at the intersection of Roberts Boulevard and the future Interstate 49 in 2005, when the interstate and Chaffee Crossing were not much more than a dream.

I-49, a roadway already complete in MIssouri and through most of Louisiana that will open a transportation route from the Gulf of Mexico through Chaffee Crossing and eventually on to the Canadian border.

Asked why the company chose the Chaffee location, Plant Manager Aaron Mauch was direct.

"Access to I-49 and transportation lanes to both I-40 and south to our board mill in Louisiana," he wrote.

GRAPHIC EXPANSION
And while the company has had to wait for I-49 to become a reality, it has not stopped the company from expanding its local workforce, where more than 350 are now employed at the Chaffee Crossing facility and at the company's original 176,000 square foot Boone Avenue facility built in the 1970s, which Mauch said has since been updated for new production.

"In 2007, Graphic Packaging converted the facility on Boone Avenue to produce Z-Flute cartons. Z-flute is specifically targeted for club stores food packaging," he said.

And changes at the company are not finished, as Mauch said "incremental printing and cutting capacity will be added early next year."

While the company may be downplaying the increase in capacity, building permits issued by the city of Fort Smith for the month of July indicate that the addition to Graphic's Chaffee Crossing location will be more than $3.4 million.

Patrick Combs, director of operations at Graphic Packaging, said while it was too early to tell how the expansion would impact labor numbers at the site, the number of employees at the facility "will go up. We're putting together the numbers right now."

So how has the company been able to not only remain stable, but expand in a period when so many other companies in Arkansas, such as Nordex and Hewlett Packard, are laying off hundreds?

"Graphic Packaging has maintained its leadership in the packaging industry by providing innovative and value-added, sustainable packaging solutions that are used by brands around the world," Mauch said. "You have probably purchased food, beverages or other consumer products in the grocery store or club store that are sold in Graphic Packaging's product. We focus on product innovation and continuous operational improvements. Graphic Packaging's integrated supply chain and diverse customer base is crucial to the businesses. This means, we are one of the largest global manufacturers of folding cartons, unbleached paperboard, coated recycle board, flexible packaging, microwave packaging, heat-transfer labels and machinery."

UMAREX GROWTH
Another Chaffee Crossing business that is a leader in its industry is Umarex USA, a manufacturer of air guns and other firearms, which announced last year a $7 million expansion of its Fort Smith campus as Walther Arms moves its operations to the Umarex campus, built in July 2010, at Chaffee Crossing.

At the time, Arkansas Gov. Mike Beebe said the workforce available in Fort Smith had been one of the motivating factors for Umarex to originally locate in the city, where the German-based company has leased space since 2006.

Adam Blalock, president and CEO of Umarex USA and Walther Arms, said he has put a big emphasis on hiring since the companies have come to call Chaffee Crossing home.

"We put a very strong emphasis on hiring, on building the team," he said. "With the rapid growth, the trick has been bringing the right people on board at the right time. And we have a lot of experience represented on our team, relevant experience. People who know our trade and industry and who understand that the distribution channel. I call it distribution channel expertise, people who know what it means to do business with Wal-Mart, Bass Pro, Cabela's, Academy and they understand that."

In addition to having the right employees available, Umarex was encouraged to place roots at Chaffee through different economic incentive packages, Blalock said.

"When it came time for our building expansion, we did have options and we were willing to do whatever we needed to do that was best for the business. The Arkansas Economic Development Commission, the Fort Smith Regional Chamber of Commerce and Chaffee Crossing were all just terrific to work with and for the most part, I was very frank in saying we want to be in Fort Smith, but we need your help to solidify that decision with the building."

PLANNING AND LUCK
Even so, incentives have not always ensured that companies using those perks keep their local operations financially viable, once again as evidenced by the recent HP layoff of nearly 500 employees after accepting economic incentive perks for locating in Conway.

Blalock said for Umarex, the company has stayed strong through a combination of good planning and a little bit of luck.

"We strategize, we write a business plan. On the air gun side, it's been very hard-earned. It's been hard-earned on all fronts, but a lot of people in the community when I run into them, they go, 'Well, it must be nice to be in the firearm business right now because every time Obama talks about gun control the markets go crazy.' And that's true," he said. "It wouldn't be genuine if I said we hadn't benefitted from a robust market. But even that's been hard-earned. But on the air gun side, really, that's been relatively little affect except traffic in a Bass Pro obviously affects air guns a little bit because they're in there after firearms. But I'd say air guns and air soft (that have been the core of our growth)."

As the company expands, it will do so in three phases over the next few years, with phase one nearly 60% to 70% complete, Blalock said, and phase 2, valued at around $5 million, was recently awarded to Beshears Construction in Fort Smith.

‘FUTURE IS MANUFACTURING’
And Umarex has no plans to slow down, either, as the company looks to grow its Fort Smith-based workforce beyond its more than 80 full-time Fort Smith employees.

"There's a project on the Umarex side that we call 'Made in Fort Smith,'" Blalock said. "It's identifying future products and getting our supply base together. It's the whole strategy that's rolling out to our making air guns here (instead of other contracted facilities across the nation or in Germany). And we have a similar strategy on the Walther side. But we are not at a place on that timeline where we've identified here's what we're going to make."

As the company continues planning for that future growth, Director of Marketing Justin Biddle said one thing was certain at Umarex.

"The future is manufacturing."

That would be a welcome future. There were an estimated 18,600 manufacturing jobs in the Fort Smith area in July 2013. The number of jobs in the sector are down more than 41% compared to July 2000 when 31,700 were employed in regional manufacturing jobs.

In a surprise move, Bentonville-based Arvest Bank and Pine Bluff-based Simmons First National Corp. submitted bids to acquire Little Rock-based Metropolitan National Bank, whose parent company, Rogers Bancshares, Inc., is embroiled in a bankruptcy proceeding.

Arvest’s bid was announced in a legal notice in the Arkansas Democrat-Gazette for an undisclosed figure, while Simmons First disclosed a $16.9 million bid in a SEC filing.

Metropolitan officials announced in early July that the bank would be acquired by Ford Financial Fund II, a private equity fund led by Dallas investor Gerald J. Ford and his partner, Carl Webb. Ford Financial Fund II said at the time it was aiming to purchase all of Metropolitan National Bank’s stock for $16 million and recapitalize the bank.

On Thursday, however, Simmons First disclosed its bid on the bank, which is nearly $1 million more than Ford Financial proposed. Arvest’s bid, which did not provide a dollar amount for the offer, appeared in the legal notice section of the statewide newspaper.

“Arvest Bank Group, Inc… intends to apply to the Federal Reserve Board for prior approval to acquire 100% of the issued and outstanding shares of Metropolitan National Bank,” the legal notice stated. “The Federal Reserve System considers a number of factors in deciding whether to approve the application, including the record of performance of banks we own in helping to meet local credit needs.”

“MNB [Metropolitan National Bank] has a rich history of providing exemplary customer service to the communities in which it is located. Simmons First, if it is successful in its attempt to acquire MNB, will combine the operations of MNB with Simmons First National Bank and continue to provide the highest quality customer service throughout the combined service area,” Simmons First officials said in a SEC filing.

The two banks and Ford Financial Fund make for three known qualifying bidders for Metropolitan. The bids were due on Tuesday, Sept. 3. By nature of becoming a qualifying bidder, all of the entities must have exceeded the previously announced $16 million offer from Ford.

Now, a “private” or “closed” auction will take place on Monday, Sept. 9, 2013 at an undisclosed location. All three qualifying bidders will be able to participate in the auction with the highest bidder eventually winning Metropolitan’s assets.

In its second year the ARK Challenge rolled out nine solid company startups before  more than 35 investor groups on Thursday (Sept 5) at the final Demo Day at Crystal Bridges in Bentonville.

In a surprise announcement around 1:30 p.m. Clete Brewer, CEO of BlueInGreen, said there would be three companies chosen again this year for the $100,000 funding level. That is one more than the groups anticipated because Gov. Mike Beebe and Grant Tennille, executive director of the Arkansas Economic Development Commission, felt compelled to contribute.

Brewer joked that Tom Dalton, of sponsoring Winrock, did a little arm twisting, but not too much given the high caliber of viable business opportunities in the room.

Langhar, Info Assembly and Overwatch were the three teams selected by the investment panel following their eight-minute pitch presentations on Thursday. Being selected is a game changer for these early stage companies, most of which were not much more than idea just 14 weeks ago.

These teams were selected from a field of 92 applicants back in April, then whittled down to the nine who worked closely with ARK Challenge mentors and partners to get those ideas into scaleable prototypes and revenue generating businesses.

The program sponsors include: Fund for Arkansas’ Future, Gravity Ventures, Winrock International, New Road Ventures and Arkansas Development Finance Authority.

Passenger Baggage Xpress was the team chosen by the University of Arkansas RFID Research Center for the board member position. RFID Research Director David Cromhout said the board seat is worth $25,000 and it puts them in close contact with dozens of key leaders in logistics. PBX is based in Little Rock

OVERWATCH
Overwatch was the only local team selected on Thursday, showcasing the youngest participant in the competition, 17-year old Josh Moody, a senior at Little Rock Catholic High School.

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

His team members include Joe Saumweber and Michael Paladino, software developers who live and work in Bentonville.

“We were introduced to Josh through his dad, David Moody, an active investor in the local entrepreneurial community. The idea was all Josh’s and he had done a fair amount of research on the market potential,” said Paladino, chief technology officer for Overwatch.

Moody said he and his partners sat around the kitchen table for few hours sketching out ideas on napkins and scraps of papers and decided to toss their business concept into the ring for the ARK Challenge.

“We have come such a long way in the past 14 weeks. We have partnered with Cybergun for the gun hardware rights and distribution, which will give us access to online stores and 9,000 store fronts where they do business, including Cabella’s and Wal-Mart,” Moody said.

The Overwatch team said this first round of funding is about one-quarter of the amount they need to further develop the mobile application for Android and ramp up the manufacturing for the hardware. They were encouraged by several other investor groups who also showed interest in their venture after Thursday’s presentation.

LANGHAR
Langhar is translated as “pure food”, according to Karanpreet Singh, co-founder for the Indian-based food solution company.

Singh was the only one of this three-man team presenting. Partners Pankaj Sharma, Pawan Saini and Sunil Kumar were cheering him on from their home base in Delhi, India.

Langhar is already up and running in Delhi generating roughly $2,000 per month in individual subscriptions and $10,000 each quarter for business subscriptions. The company provides web or mobile access to home cooked meals for pickup, delivery or dine-in experience in the chef’s home.

“There are fewer barriers in India, as it is legal to sell food that’s prepared in a home and there is a dense population of people of are accustomed to ordering prepared food,” SIngh said.

During his 14 weeks here in the U.S., Singh had the opportunity to meet with Tyson Foods and other food companies that do business in India.

Clint Lazenby mentored the Langhar team and said he was compelled to invest because he has seen firsthand the potential this company has inside India and possibly the U.S. Lazenby oversees international sales for ConAgra’s Lamb Wesson division and has worked in India.

INFO ASSEMBLY
Aditya Goel and Karthik Vaidyanath are seasoned professionals in their own right. Goel, of Orange County, Calif., most recently worked as a financial analyst for PIMCO. His partner crunched numbers and financial data for a large investment banking firm in India.

The financial duo said their company — Info Assembly— accelerates solid financial research, easing the cumberson data gathering process for relevant financial metrics which are then evaluated by analysts who make business and investment recommendations.

By using the Info Assembly software, Goel said investment houses, hedge funds and other financial investors can greatly reduce their research time. He said analyst productivity is raised to the point where less analysts are needed.

Info Assembly has worked locally with Greenwood Gearhart Inc. in Fayettevillle to gain insight into the features needed by smaller investment advisors.

Goel said there is a $1.9 billion U.S. market in which they can sell their solution, but they need to secure roughly $500,000 for marketing and manufacturing the software. He said the company has the ability to reach $1.2 million in revenue by the end of 2014.

WHAT”S NEXT
Dalton told the crowd that work has already begun for next year’s ARK Challenge. He said the results have been so successful in Northwest Arkansas, there will be two competitions next year, one locally and one in central Arkansas.

A number of last year’s contestants attended Thursday’s Demo Day celebration.

StackSearch, one of the three winners chosen last year, just secured $260,000 in additional funding and continues to expand their enterprise recently adding a partnership with Elasticsearch for big data applications.

B’tiques, also selected a winner in 2012, continues to work expanding their startup. Fayetteville-based B’tiques works with small clothing retailers to help them promote limited quantity retail through a free mobile application that is shared through the retailer’s social media pages.

“We launched the mobile app three weeks ago and have signed up 15 small retail stores in Northwest Arkansas, Fort Smith and the Little Rock area. The feedback has been great and consumers like having a shop-mobile option,” said Will Carter, co-founder of B’tiques.

He said consumers often buy fashion on impulse because they don’t know they want it until they see it. B’tiques, according to Carter, will promote the hottest fashion trends on social media for the retailer and then make the product accessible via the mobile application. The customer can purchase the product online and either have it delivered or pick it up at the store at a convenient time.

Carter said the mobile application is free and easy to use for the retailer and consumers.

“We are paid a percentage of the sales generated from the application,” Carter said.

These former competitors said it was fun to sit back and watch this year’s challengers knowing the difference a year can make with funding and equally important mentoring from industry leaders that continually support Arkansas’ entrepreneurial sector.

Attorneys Mercy Fort Smith say a lawsuit from Fort Smith-based Cooper Clinic is to “vague and ambiguous” and will need a “more definite statement” before providing a response.

The attorneys with Fayetteville-based Kutak Rock also asked the court to dismiss the Cooper Clinic lawsuit filed Aug. 2.

In the 17-page complaint filed in Sebastian County Circuit Court, Cooper Clinic officials allege that Mercy and its parent company used their economic power to recruit 15 physicians away from Cooper and to the Mercy Clinic between Oct. 31, 2010 and Aug. 1, 2013. The Cooper lawsuit includes the St. Louis-based Sisters of Mercy of Health System as a defendant.

The physicians who left Cooper Clinic are (in order of departure): Ivelesse Dupree; Merle McClain; Tony Flippin; Douglas Buckley; John Smith; Garreth Carrick; Lane Wilson; David Hunton; Kurt Mehl; Donald Shows; Chris Coleman; Greg Pineau; Robert Nowlin; Jennifer Burks; and John Werner.

Cooper’s complaint also includes Drs. Burks, Nowlin, Shows and Werner as defendants.

Cooper’s lawsuit seeks compensatory and punitive damages under six counts: Breach of Contract; Tortious Interference; Violation of Arkansas Deceptive Trade Practices Act; Unjust Enrichment; Civil Conspiracy; and Breach of Contract-Compensation Reimbursement.

In a five-page response filed Wednesday (Sept. 4), the attorneys for Mercy said Arkansas law requires a plaintiff to

“Cooper’s claim for tortious interference, as pled, is vague and ambiguous, and until Cooper offers clarification regarding its allegations, the defendants cannot reasonably be required to frame a responsive pleading,” noted the Mercy response.

The motion to dismiss was also filed Thursday, with Mercy that it “generally and specifically denies all allegations in Cooper’s Complaint ...”

Physicians sued by Cooper also responded in responses filed Wednesday. The physicians – represented by Mark Moll, with Jones, Jackson & Moll, and Barry Neal – asked the court to dismiss the Cooper lawsuit and require Cooper to pay for legal fees.

The Fayetteville law office of Tulsa-based Conner & Winters law firm is representing Cooper Clinic.

U.S. Rep. Steve Womack, R-Rogers, did not shy away from addressing constituents' questions head-on as he held a town hall meeting at University of Arkansas at Fort Smith's Second Street Live performance venue in downtown Fort Smith on Thursday night(Sept. 5).

Likely the most pressing issue to receive attention was Congress' upcoming debate and vote on whether to authorize President Barack Obama to use military force to strike Syria in retaliation for Syrian President Bashar al-Assad's alleged use of chemical weapons against civilians during the country's ongoing civil war.

Womack said he was leaning against voting to authorizing the President to use force, explaining that his decision could change should a classified briefing he will receive Monday (Sept. 9) contain information that absolutely shows a different situation that he believes requires American involvement.

"I say I lean no because to be fair to the process, I need to see the brief. I need to go to the classified briefing on Monday and then sometime either Monday night or Tuesday morning, I'll issue my final statement. I can't imagine what I'm going to see in that brief that's going to cause me to go from lean no to yes. But I can tell you this, probably no vote I will make in Congress is more important than when I vote to commit the resources and the lives of the sons and daughters of America into a confrontation."

Womack did say that should Syria pose a threat to American interests in the Middle East, such as launching an attack on Israel, his view on military intervention in Syria would be different. The action Womack would want to take would not be a simple bombing of a few key military targets and letting al-Assad go back to business as usual.

"As a taxpayer, as a citizen, as a veteran, I am tired of us pussyfooting militarily. If there comes a point in time where the United States of America needs to engage an adversary over some sort of a provocation, I'm going to vote to bring the full weight of the United States' military forces, everything that we have, on that enemy so as to send a message that you're picking on the wrong people and when you do, there's going to swift and punitive consequences as a result of it and it is not going to be your best day."

Before Womack was able to venture into discussion of the current situation in Syria and a possible American intervention, he was greeted by protesters from the Benton County Tea Party, who ventured to Fort Smith and stood in front of the Second Street Live facility in order to protest Womack's decision to not attempt to defund the Affordable Care Act in the upcoming continuing resolution that would continue funding government operations in the absence of a formal appropriations bill.

"When Harry Reid and President Obama stand up and say, 'Why are you shutting down the government?' the Republicans need to stand up and be strong and say, 'You are the ones shutting down the government. We have funded it. We just don't want to fund this mess that's going to wreck our country,'" said Rebecca Hedges, who was the leader of the more than 10 Tea Partiers who made the trip to Fort Smith. "I've loved Steve for years, but I'm sad about his not showing backbone and not being able to stand up to President Obama and to stand up to John Boehner and Eric Cantor."

Womack said Hedges view of his actions were misinterpreted, adding that he has voted 40 times to repeal ACA and is currently co-sponsoring legislation that would defund the law, which was upheld by the Supreme Court as Constitutional in June 2012.

"While I support every effort that's made to defund, replace … to stop this train wreck called Obamacare, I think our party has to be very wise to the potential political outcomes in 2014 if we force the government to shut down."

Next year's election is important, Womack said, because it is a very real opportunity for Republicans to take back control of the Senate and increase its majority in the Senate. Should the Republicans force a shutdown, he said it runs the risk of Republicans not going into the 2014 election with strength but instead could result in a not only a hold on the Senate by Democrats, but possible gains by Democrats in the House, has happened during the 2012 election, when Republicans like U.S. Rep. Allan West, R-Florida, lost their re-election campaigns only two years after being sent to the House.

"(In order to accomplish our legislative goals), we really need that body that's at the other end of the capital from our end - the U.S. Senate. And the difference in power right now is six votes, six seats. And there will be a half a dozen seats that will be up for election that are held by the other party that we feel very confident that we can compete in. But we have no margin for error. We have to have them all. As you know, Arkansans are going to get an opportunity to vote on this one. They didn't in '12. But we do in '14 and it's one of the six I'm talking about."

U.S. Rep. Tom Cotton, R-Dardanelle, is challenging U.S. Sen. Mark Pryor, D-Ark.

About 250 people were in attendance at tonight's meeting. The meeting is one in a series of town halls that took place in Bentonville, Flippin and Russellville during the recent recess.

The last of the A-10 aircraft will depart the 188th Fighter Wing in June of next year, according to the fighter wing's commander Col. Mark Anderson who spoke Friday (Sept. 6) at the Fort Smith Regional Chamber of Commerce's First Friday Breakfast.

A draw down of the A-10 mission begins this month, with the Fort Smith Air National Guard Base receiving new missions that focus on drones and intelligence, he added.

With the loss of the A-10 mission and the new MQ9 (drone) mission, along with the relocation of the 123rd Intelligence Squadron from Little Rock Air Force Base to Fort Smith and other shifts, Anderson said Fort Smith's base should only see a small reduction in individuals stationed at the site. Currently, 977 positions are based at the 188th, which will be reduced to 960 positions as a result of the realignment.

While the number of positions will not see drastic changes, the types of positions will be vastly different. For example, Anderson said the base will lose all aircraft maintenance jobs and most aviation support positions as the drone mission will not require "guys with wrenches" to be on site and servicing the drones.

According to Anderson, an unknown at this time is whether the base will still have a fire department, which also serves the Fort Smith Regional Airport.

"The firefighters, (who are) state employees, that mission is actually uncertain," he said. "It is still to be determined. I don't know if y'all really know this or not, but the 188th provides 24/7 crash and rescue for the Fort Smith Regional Airport. And obviously if that goes away, then that's a burden that's going to have to be picked up by the regional airport. It's a pretty decent sized bill. And it's still uncertain whether we're going to keep that capability or not."

Airport Executive Director John Parker was at the breakfast this morning and said he and the 188th are doing all they can to keep the firefighting mission at the base.

"The funding source, and the agreements that we have are actually with the National Guard Bureau. We've been in communications with the National Guard Bureau and it's ongoing discussions about possible resolution of who's going to provide the firefighting," Parker said. "Right now, they do our aircraft rescue and firefighting. In the future, because we are required to have because of commercial service, it would either be the continued service by the Air National Guard assets or the Fort Smith Airport Commission would have to determine how they would source that, whether it be internally or by contract. There's a lot of variables."

Should the airport have to start fronting the bill for the firefighting service, Parker said the airport commission would have to explore funding options, adding that it was too early to determine if fees would have to be increased to cover such expenses.

Speaking of the future, Anderson said with the new MQ9 missions, along with the relocation of the 123rd Intelligence Squadron and other upcoming changes, it could be well beyond the start of Fiscal Year 2015 before the mission is fully operational due to the massive amounts of changes that will be required with both staff and equipment.

He said while the new mission will keep the 188th open and strong well into the future, changes would be noticeable. Among the changes, Anderson said the 188th:
• Will be less visible in the community;
• Will not be deployed as often since drones and other intelligence operations can be conducted remotely from the 188th headquarters instead of in a combat theater; and
• Will not be as open with information to the public due to the squadron's top secret operations and facilities.

Even with all of the changes coming the 188th, Anderson said a lot will stay the same, namely being a community-based mission.

Asked what that means to the local economy, Anderson said the base not having on-site shopping, housing and entertainment facilities, as many other bases do, brings members of the military into Fort Smith and adding significantly to the area's economic development.

"I believe it's $144 million a year economic impact," he said.

As for any guardsmen whose positions will no longer be based at the 188th, Anderson said they will likely stay within the Guard and move to bases in either Little Rock or Tulsa to continue with flight missions as pilots, mechanics or other positions while others are at or near retirement.

"Obviously, this is a big transition. Not everybody's going to make the transition. Those that are close to retirement age, we're finding are retiring," he said. "The good news is that pretty much everybody that wants a job, has a job."

Banking consultants said Arvest and Simmons First National Bank have plenty to gain if they were to walk away with 100% ownership of Metropolitan National Bank next week when the bidding process concludes on Monday (Sept. 9).

At least three potential suitors have lined up to bid on Metropolitan National Bank despite its lack of capital and lackluster financial records for the past several years. Earlier this week Simmons First National and Arvest Bank disclosed they had entered the bidding process, which was initiated by Ford Financial last month. Dallas-based Ford proposed a $74.2 million capital injection for the bank and $16 million paid in cash to the holding company creditors in the bankruptcy case of Rogers Bancshares.

Simmons First National and Arvest Bank have made no secret of their desires to expand their marketshare inside and outside of the Natural State. On the flip side Ford Financial was the stalking horse bidder and has a proven track record of buying distressed banks and turning them into profitable ventures for resale. Industry analysts also agreed the time is ripe for acquisition with cheap money and low, but rising bank stock valuations.

Simmons submitted a qualifying bid of $16.9 million, topping the $16 million offered by Ford. 


“Metropolitan has a rich history of providing exemplary customer service to the communities in which it is located,” Simmons noted in a recent filing with the Securities and Exchange Commission.

Bank officials said it will “combine its operations of Metropolitan and continue to provide the highest quality customer service throughout the combined service area, should they prevail with the highest bid.


Likewise, Arvest said it made the decision to participate in the process due to Metropolitan National Bank’s history as an Arkansas based financial institution, established customer base and branch footprint. 


“We have the utmost respect for Metropolitan National Bank and its associates and feel this could be a very positive addition to Arvest Bank, if we are the successful bidder,” said Jason Kincy, spokesman for Arvest Bank.


Both banks said they intend to merge Metropolitan’s operations with their own as each of them do business in Northwest and Central Arkansas.
 Ford, on the other hand, would be an outsider making their way into both markets, which are already highly competitive.

BIDDING PROCESS

All three suitors will convene on Monday (Sept 9) and the bidding process will resemble that of a Barrett-Jackson car auction as seen on television, according to Garland Binns, attorney with Dover Dixon Horne in Little Rock.
 Binns said the $16 million bid by Ford and $16.9 million offer from Simmons is money that will go to satisfy the creditors listed in the holding company bankruptcy.


“These bidders will each have the opportunity to raise their offers, one at a time, until one of them eventually outbids the other two,” Binns said. 


The highest bidder will talk away with 100% ownership of Metropolitan National Bank and need to recapitalize that institution to satisfy banking regulators, he said.


Ford Financial officials plan to inject $74.2 million into the bank if they are allowed to buy it.

Arvest and Simmons would also need to ante-up capital equity if they are the winning bid. But, rough estimates indicate it would be far less than the $74.2 million mentioned by Ford.


Metropolitan is ordered to maintain a tier-one leverage ratio of 8%, and as of June 30, the bank posted a ratio of 6.46%. Rough calculations indicate a shortfall of just under $15 million is needed for Metropolitan to hit the 8% requirement.


If Simmons walks away with Metropolitan National Bank, the combined institutions would have roughly $3.062 billion in assets, with combined equity capital of $253.853 million. The tier-one ratio of these combined banks would be roughly 8.29% and meets with federal guidelines.


If Arvest wins the bid, the combined banks would have assets of $14.87 billion, against capital equity of $1.56 billion, resulting in a combined ratio of 10.4%.


Binns said this is an inexpensive way for Arvest and Simmons to expand their marketshare in central Arkansas.


MARKETSHARE DATA

Metropolitan National has roughly 5.8% of the deposit marketshare in central Arkansas,  behind 6.13% garnered by Arvest and Bank of the Ozarks. All of these trail the 10% share attributed to Centennial Bank and 14.2% to Regions Bank and 16.88% to Bank of America.


If Arvest were to gain control of Metropolitan it would boost deposit marketshare to nearly 12%, elevating Arvest above Centennial and Bank of Ozarks which are local brands to the Little Rock metropolitan area. If Simmons wins the bid, it would grow its marketshare from 1.53% to 7.35%, overtaking Arvest and Bank of Ozarks.


The gain in Northwest Arkansas is far less appealing, though it would take one competitor out of the marketplace, said Phillip Knight an independent banking consultant in Rogers.


Another interesting dynamic in Northwest Arkansas is the concentration of marketshare if Arvest merges with Metropolitan.


Tim Yeager, Arkansas Bankers Chair at the University of Arkansas, said federal regulators use the Herfindal Index as a guide against excessive market concentration by any one bank.


Arvest already controls 51% of the deposit marketshare in Northwest Arkansas, while Simmons has 2.27%, according to most recent numbers provided by the Federal Deposit of Insurance Corp.


The Herfindal Index for weighted deposits between a proposed merger of Arvest and Metropolitan in Northwest had a reading of 2926, a change of 89 from the pre-merger scenario.
 While the reading is high enough to draw a red flag, a report from the Federal Reserve of Kansas City notes that market concentration readings above 1800, with a change less than 200, are unlikely to face anti-trust challenges from the Department of Justice.


Yeager said regulators have been fairly lenient in past years in permitting and facilitating more mergers and acquisitions.


M&A CLIMATE

Binns agreed the climate is ripe for mergers and acquisition and expects to see more in the future on heels of several already announced.


Liberty Bank is merging with Home Bancshares, a marriage viewed as a win-win for both banks seeking brand recognition and larger footprints across the state.


First Federal Bank of Harrison last month acquired First National Security Co., the holding company for First National Bank of Hot Springs and Heritage Bank in Jonesboro. That deal was valued at roughly $124 million, $74 million of that was cash.

John Dominick, banking professor at the UA and a banking consultant, said banks are more eager to expand their footprints at this time, partly because money is cheap and bank values are still somewhat depressed.

“I am glad to see Arvest and Simmons bidding for Metropolitan National. They each have something to gain should they win the bid. Neither bank is inclined to overpay for the assets and they each have experience in both central and Northwest Arkansas,” Dominick said.

U.S. Bankruptcy Judge James Mixon will conclude the bidding on Monday (Sept. 9) and award the bank in a hearing on Sept. 12, following an auction process.

Charles Stewart is eager to begin his new role as the chief of Sparks Health System in Fort Smith and Summit Medical Center in Van Buren and hopes to bring stability to a post that has seen three changes within 10 months.

Officials with Naples, Fla.-based Health Management Associates (HMA) have selected Stewart to be the new Arkansas Market CEO following the surprise departure in late May of Gary Blan. Stewart’s first day on the job is scheduled for Sept. 30.

Stewart joins Sparks from Poplar Bluff, Mo., where he served as the Missouri Market CEO for HMA hospitals Poplar Bluff Regional Medical Center and Twin Rivers Medical Center since February 2012. Stewart has worked 30 years in hospital management at hospital systems in Alabama, Mississippi, North Carolina and Tennessee.

Sparks Health System includes Sparks Regional Medical Center, Sparks Clinic, Sparks PremierCare, Sparks Home Health and the Marvin Altman Fitness Center in Fort Smith, Arkansas. Summit Medical Center is a fully accredited, 103-bed acute care hospital in Van Buren.

Blan was hired by HMA as the Arkansas Market CEO on March 19. According to HMA, Blan stepped in late May, with the announcement made public on May 23. Blan was picked to succeed Melody Trimble who was promoted to president of the HMAs Southern and Western Group, which includes 26 hospitals in seven states. Trimble’s promotion was effective Jan. 1, 2013. The seven-state region is Alabama, Arkansas, Mississippi, Missouri, Oklahoma, Texas and Washington.

Stewart said Monday that leadership stability will be a goal, adding that Trimble was in the job for more than three years and he also seeks longevity in the post.

“Prior to that (Blan’s departure), Melody was here for a number of years. ... I plan to be here for a number of years. Most of the places I’ve been, I was there for several years,” Stewart said.

Stewart was hired in Poplar Bluff in February 2012, and oversaw the completion of a $173 million new HMA facility. The city has a population of a little more than 17,000, is located in southeast Missouri about 80 miles north of Jonesboro, Ark., and has a trade area of about 161,000 and is in a county (Butler County) with about 43,000 residents.

Prior to Poplar Bluff, Stewart was a hospital administrator in the Chattanooga, Tenn., area for six years and in Tuscaloosa, Ala., more than nine years.

The Poplar Bluff job also saw Stewart managing two hospital operations and several physician offices that are similar to what he will oversee in the larger Fort Smith market. The Poplar Bluff hospital had 423 licensed beds, fewer than the about 490 at Sparks. An HMA hospital in Kennett, Mo., – Twin Rivers Medical Center – had 116 beds, similar to the 103 beds licensed to Summit Medical in Van Buren.

“This was a great promotion and my wife and I are very excited about the prospects of coming to Fort Smith,” Stewart told The City Wire. “Many people we’ve talked to about our move have said talked about how great the area is. ... Fort smith has a great reputation outside the area.”

Stewart is a native of Alabama. He earned a bachelor’s degree in education & psychology from Jacksonville State University and a master’s degree in education & counseling and a master’s degree in hospital & health administration from the University of Alabama at Birmingham.

“Charles Stewart has won many awards for his service, not only to groups like Masons and Rotary Club, but also to the American College of Healthcare Executives and several Chambers of Commerce. He will be a benefit to our community,” noted Hugh Maurras, president of Sparks Health System’s Board of Trustees, in a statement from Sparks.

Angie Marchi, HMA Atlantic Division CEO, said in a statement that Stewart “is the right person to lead Sparks Health System and Summit Medical Center into the future.”

It was only a month ago that Kyle and Alisha Quenga were surprised with a home makeover from the Electric Cooperatives of Arkansas.

Since the announcement of up to a $50,000 home makeover on Aug. 8, the Quenga family has had quite a bit of work done to their home just south of Fort Smith.

Among the most noticeable upgrades when first entering their home is the addition of new windows from Weather Barr Windows of Fort Smith. According to Greg Davis of the Arkansas Valley Electric Cooperative, the windows have technology that allows light in without a lot of heat, which could be a big help during the early September heat.

"There are double panes and in between those panes is a gas that will keep it from transferring into the house. It makes a huge difference," he said. "And of course, these windows were put in extremely tight and you can even see just tons of caulk. And that's something that really everyone should do. If somebody hasn't caulked around their windows lately, they need to. Period."

Prior to installation of the new windows, the Quenga family had aluminum pane windows, which Davis explained were great conductors of hot and cold, "they'll pull that cold air or hot air to it, and then it of course is convecting back into the house," which will result in extremely high indoor temperatures during the summer months.

The old windows were also not caulked as well as the new windows, which allowed for much of the energy in the home to escape with little effort. Davis said prior to the home makeover, as much as 70% of the home's energy was escaping.

And it was not only through the windows. It was also escaping through the back door, an area Davis said many people are not aware of as a potential escape route for energy.

As he explained it, doors are often installed and molding is put up around it, disguising gaps between the doorframe and the house sometimes large enough to see daylight, as was the case with the Quenga's home. Proper installation and sealing will prevent the energy escape, thereby saving more money.

Another way to keep the house cool, Davis said, is properly insulating the attic. In the Quenga home, temperature readings in the attic were running well over 110 degrees. But sprayed foam insulation has brought the temperature to a tolerable level, only five to 10 degrees above the temperature in the main part of the house.

In order for the house to continue having lower heating and cooling costs following the makeover, Residential Energy Marketing Manager Bret Curry said spray foam insulation similar to what is now in the attic would be applied to the home's crawl space, making sure that cold or hot air does not escape from below the home.

"We've all heard that hot air rises, and it does, that's why hot air balloons work. But heat moves to cool on planet Earth. It has forever and ever. It's thermodynamics. And in a house, on a cold winter's day when the wife complains that her feet are cold, that's because the heat is moving through the floor mainly because there's no insulation under here and then to the cold, open-vented crawl space."

In addition to insulating the crawl space, Curry said the home would also have the vents to the crawl space closed to keep air from escaping. Once complete, the crawl space should see temperatures similar to the attic, with only slight differences between the indoor temperature, he said.

Davis said home improvement work was not the only additions to the Quenga household, pointing out new energy efficient appliances provided by General Electric. Since the new GE refrigerator was larger than the opening in the kitchen, the home makeover crew did cut out additional space from already-existing cabinets. The crew also re-painted the cabinets to make them look new.

The family also has a new sidewalk, thanks to the home makeover crew. Davis said all of the improvements, including the re-painted cabinets and the sidewalk, were meant to "leave the home in better condition" than when the work crews arrived.

Still to be completed is the installation a new geothermal heat pump, a new energy-efficient water heater and the crawl space insulation.

But even with some projects not yet complete, the home still feels cooler and more comfortable, which Davis said could cut their home utility bill by up to half.

The August Recess is over and members of the Arkansas Congressional delegation have returned to Washington.

The topic on nearly everybody's mind as Congress reconvenes appears to be President Barack Obama's request of Congress to authorize military action against the government of Syria. The request is in response to what the Obama administration says is Syria President Bashar al-Assad's alleged use of chemical weapons against his own people recently as part of the nation's multi-year civil war.

But what did members of Congress hear from their constituents when they were home in their districts during the August Recess? What were their constituents' top concerns?

The following are responses received from members of the delegation representing the Fort Smith and Northwest Arkansas areas in Congress. Each member was asked by email to explain what issues the majority of constituents wanted to discuss with them during their time at home during the recess. Their full and unedited responses are as follows:

• U.S. Sen. John Boozman, R-Ark.:
“Agriculture is Arkansas’s top industry. We are serious about job creation in the Natural State, so we must be in tune with the needs of the agriculture economy and our rural communities. Washington’s decisions on agriculture policy will have a dramatic effect on our state’s economy. Our farmers, ranchers, processors, and foresters are concerned about the long-term prospects and the predictability of their business and urging a collaborative effort in agreeing on farm policies.
 
“I would like to get rid of Obamacare because it adds a tremendous amount to our debt and deficit and it is wasteful spending. We will work to hold the line on reining in spending and reducing the growth of government in the upcoming continuing resolution so we can continue to fund the government and to provide necessary services but we do need to continue efforts to cut back on wasteful programs that are abusing taxpayer dollars.
 
“Like the majority of Arkansans, I have not been convinced that military engagement in Syria is in our best interest. Arkansans are clearly opposed to our involvement in the country’s civil war and the President has not convinced us that his plans will be effective, that he has an end-game and that we can be confident of the real intentions of the rebels. I will share their concerns with my colleagues as we debate this proposal in the Senate, but as it stand right now, I intend to vote against authorizing U.S. military force.”

• U.S. Rep. Tom Cotton, R-Dardanelle:
"Obamacare was the number one concern Congressman Cotton heard from constituents over the August recess. Arkansans are worried about every aspect of this job-killing legislation --from it's cost, assault on religious freedom, and the impact it will have on their access to care."

• U.S. Sen. Mark Pryor, D-Ark.:
“Whether I was touring a manufacturing plant or talking with folks at a local diner, Arkansans told me over and over again that they were concerned about our economy.  And I agree. That’s why I’ve been fighting to strengthen our economy by streamlining our regulatory system, boosting our agricultural sector, and ensuring our kids can receive an affordable college education. I’ve always said that the best ideas come from Arkansas. I’ll continue working with folks back home to secure a stronger future for our families.”

• U.S. Rep. Steve Womack, R-Rogers:
“Syria, Obamacare, the size, spending, and role of the government; these are just a few of the many issues with which Third District Arkansans are concerned and shared with me at my town halls during the August work period.  I’m grateful to have had the opportunity to discuss these issues with my constituents, and I will be mindful of their concerns as I return to Washington.”

It’s a good time to be a Realtor. Home sales in Arkansas’ four largest markets during the first seven months of 2013 were up more than 11%, and were pushed higher by a more than 20% gain in July sales, according to The City Wire’s Arkansas Home Sales Report.

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 July.

In the four markets, the number of homes sold totaled 11,759, up 11.59% compared to the first seven months of 2012. The value of homes sold in the four markets between January and July totaled $1.93 billion, up 13.68% compared to the same period in 2012. The number of sales and total value of sales were up 13.42% and 25.71%, respectively, compared to the same period in 2011.

For the first seven months of 2013, the number of homes sold in central Arkansas are up 9.92%, up 12.99% in the Jonesboro area and up 15.76% in Northwest Arkansas, and up 3.13% in the Fort Smith area.

The average sales price of a home sold in the four markets during the first seven months of 2013 was $164,146, up 1.87% compared to the 2012 period, and up 10.84% compared to the 2011 period.

For the first seven 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 2,596 home sales between January and July. Benton County, with a population of around 230,000, posted 2,589 home sales in the same seven month period.

JULY ACTIVITY
Home sales activity was up in all four markets during July. There were 944 homes sold in central Arkansas, up 20.56% compared to July 2012, and up 13.33% compared to July 2011.

July home sales totaled 695 in Northwest Arkansas, up 16.22% compared to July 2012, and up 15.45% compared to July 2011.

Jonesboro area home sales totaled 194, up 22.01% compared to July 2012 and up 13.45% compared to July 2011.

In the Fort Smith area, home sales totaled 171, up 39.02% compared to July 2012, and up 19.58% compared to July 2011.

The value of the sales during July were up 19.87% in central Arkansas, up 24.67% in Northwest Arkansas, up 15.05% in the Jonesboro area, and up 38.04% in the Fort Smith region.

THE REGIONAL PICTURE
Central Arkansas — Home sales
Jan.-July 2013: 5,573
Jan.-July 2012: 5,070
Jan.-July 2011: 4,873

Fort Smith area — Home sales
Jan.-July 2013: 955
Jan.-July 2012: 926
Jan.-July 2011: 986

Jonesboro area — Home sales
Jan.-July 2013: 1,096
Jan.-July 2012: 970
Jan.-July 2011: 1,030

Northwest Arkansas — Home sales
Jan.-July 2013: 4,135
Jan.-July 2012: 3,572
Jan.-July 2011: 3,479

The top five counties in terms of Jan.-July 2013 home sales:
Pulaski — 2,596, up compared to 2,471 in 2012
Benton — 2,589, up compared to 2,206 in 2012
Washington — 1,546, up compared to 1,366 in 2012
Saline — 870, up compared to 774 in 2012
Craighead — 865, up compared to 743 in 2012

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

THE INTEREST RATE FACTOR
Economist Kathy Deck, director for the Center of Business and Economic Research at the University of Arkansas, said increasing sales and relatively flat growth in prices are “indicative of the type of market we would expect right now.”

Deck said rising interest rates have a lot to do with the home sales activity. According to Mortgage-X.com, the average rate on a 30-year, fixed interest mortgage at the beginning of 2013 was 3.35%. By the end of July, average rates increased to 4.31% and continued to rise, averaging 4.57% in the first week of September.

Deck said there was pent up demand among perspective buyers who were waiting for the “right time” to purchase a home while rates were low. When mortgage rates began to climb, that caused some buyers to purchase homes before they rose further.

She said rising interest rates also cut into the buying power of purchasers. Higher interest rates translate into higher monthly mortgage payments and decreased buying power of consumers. Deck said interest rates are still at historically low levels and expects to see markets continue to improve as buyers jump into the housing market before mortgage rates hit more typical levels.

SUPPLY AND DEMAND BALANCE
The City Wire Economist Jeff Collins agreed that rising interest rates have motivated some consumers to purchase homes, adding other factors have contributed to improving sales.

Collins also said buyers were unsure about what housing prices should be and were more concerned about the economic climate than they are now. He said improving consumer confidence has boosted markets in Arkansas and around the nation.

Collins also expects sales to improve, adding there are some concerns about the supply of homes. Demand for homes has picked up over the past couple of years, but building activity has remained comparatively stagnant. While most markets haven’t hit the point where there’s more demand for homes than the supply of them, that issue could come to light if trends continue.

Metropolitan National Bank will soon be acquired by Simmons First National, as the Pine Bluff-based financial institution was the last bidder standing during Monday’s (Sept. 9) court-sanctioned auction held in Little Rock.



Simmons noted in a press release that the deal is subject to the approval of the U.S. Bankruptcy Court hearing scheduled for Thursday (Sept. 12).



Metropolitan had assets of $1.006 billion and equity capital of $65.7 million as of June 30. Simmons First National is a $3.6 billion financial holding company with 91 offices in 54 communities, in Arkansas, Kansas and Missouri.



“It’s a great acquisition for Simmons, a feather in their cap and one that surely add to the franchise value,” said Garland Binns, attorney with Dover Dixon Horne, specializing in mergers and capital fund raising.



Metropolitan is well-known brand in the Little Rock and Northwest Arkansas markets touting itself as “Nearby and Neighborly," but Simmons will undoubtedly merge those assets into its own growing footprint.



The Little Rock bank has operated with a capital shortfall for several years and remains under enforcement actions with the Office of the Comptroller of the Currency and the Federal Reserve Bank. Simmons, once approved by the court as the winning bid, will be asked to get the bank’s capital ratios back in compliance.

 Metropolitan is ordered to maintain a tier-one leverage ratio of 8%, and as of June 30, the bank posted a ratio of 6.46%. Rough calculations indicate a shortfall of just under $15 million is needed for Metropolitan to hit the 8% requirement.

When Simmons combines assets with Metropolitan National Bank, the institutions would have roughly $3.819 billion in earning assets, with combined equity capital of $253.853 million. The tier-one ratio of these combined banks would be roughly 8.29% and meets with federal guidelines.

"Simmons is a well-run bank and this is a great use of its capital surplus. It will open up Little Rock to them and also give them some more diversification away from agricultural loans which they have in many of their other markets," said Dr. John Dominick, industry consultant and banking professor at the University of Arkansas.

"Metropolitan has a rich history of providing exemplary customer service to the communities in which it is located,” Simmons noted in a recent filing with the federal Securities and Exchange Commission.

Bank officials said it will “combine its operations of Metropolitan and continue to provide the highest quality customer service throughout the combined service area," should they prevail with the highest bid.

In the Little Rock market Simmons can grow its marketshare from 1.53% to 7.35%, overtaking Arvest and Bank of Ozarks with the acquisition of Metropolitan National Bank.

The gain in Northwest Arkansas is far less appealing in deposits but it holds potential opportunity in real estate profits.

Gary Head, CEO of Signature Bank in Fayetteville, said he favored a Simmons or Arvest deal because it does take one competitor out the already crowed market.



Simmons last year won a bid to acquire Excel Bank in Sedalia, Mo., in an FDIC-assisted deal. It also made two FDIC-assisted acquisitions in 2010, one in Springfield, Mo., and one in Olathe, Kan.

Members of the Fort Smith Board of Directors met for nearly three hours on Monday night (Sept. 9) to discuss and try to narrow the focus of priorities identified during a strategic planning retreat on July 19 and 20 at Mt. Magazine State Park.

Consultant Ron Holifield, a principal with consulting firm SGR, was clear about what the meeting was intended to accomplish and what it wasn't.

"We cannot do what we did at the (Mt. Magazine retreat) because what we did at the last session was think very broadly about everything and had a lot of wondering to and fro conversation in the context," he said. "The staff has done a great job of kind of organizing the priorities you established at that last retreat and now what we're really going to do this evening is try to take those to sort of the next level, sort of narrowing in and prioritizing. Because the reality is that staff can't deliver what you can't measure. In other words, whatever you say this is what we're really going to pay attention to is what staff is going to deliver. Does that make sense? … You can't simply say we're going to do everything because it won't happen. It just simply won't happen."

With that said, the group was able to narrow the list of nearly 27 different items that had been floated as possible priorities during the July retreat, determining through discussion with City Administrator Ray Gosack that many priorities were actually in the process of either being developed into working items or were already up and running, or on so-called "auto pilot."

The items that were listed as being on auto pilot included:
• Developing a governance policy;
• Marketing the history of Fort Smith;
• Designing and eventually erecting downtown "wayfinding" signs;
• Analyzing the police and fire departments' pension funding;
• Researching possible physical changes to the Stephens Building, which houses city offices, in order to improve customer service and friendliness;
• Adding and re-constructing sidewalks across the city; and
• "Selling the dream," essentially posting priorities at board meetings and scheduling regular board discussion about priorities and using the city's cable access television channel to publicize the priorities.

During discussion of making changes to the Stephens Building, Director George Catsavis proposed not only exploring ways to update the building that houses city offices at an annual rent of $240,000, but possibly moving the city offices to a permanent home designed to serve as a city hall that the city would own versus a city hall that would has been and continues to be retrofitted for use as a municipal structure that Catsavis called "depressing."

It was a sentiment that met nearly no disagreement.

"It's really hard to provide good or great customer service because we have to shuffle people from one floor to the next for simple things just because there's not enough room on any one floor to put all those uses in the same place," Gosack said.

City Clerk Sherri Gard said the city's lease still ran for between one and two years, meaning that a decision on whether to move and how to pay for a permanent home for city hall would not have to be made immediately.

But in discussing a possible move, which is an idea still in its infancy, discussion of riverfront development came up, with the idea of possibly locating a city hall along the river. It was an idea Holifield said could spur economic development, a task the Board made clear tonight was among the highest in priorities for the next few years.

"If I had to choose a location to build a city hall and funding was available, it would be on the river right next to the Marshal's Museum," said Director Mike Lorenz, emphasizing that river front development was one of the top two priorities he saw come out of the meeting. "Because I think that's the catalyst to develop that whole thing."

With the museum and a new city hall, individuals would be brought to the riverfront on a daily basis, which would make the area ripe for development, Lorenz said, adding that the development would likely bring hundreds of people per day to the area that don't frequent the river, which is devoid of development between the Riverfront Amphitheater downtown and Riverfront Park near the intersection with Midland Avenue.

Besides riverfront development, Lorenz said annexation of land surrounding what will become Interstate 49 would be essential as the city looks not only five or 10 years down the road, but decades or even 100 years into the future.

"That's something Ron said at the end looking 50 or 200 years in the future. While we're talking 20 plus years to get I-49 finished, it won't be that long before it's connected to Interstate 40 … That's going to happen first. That's going to happen before down south happens. But that gives you connection from that intersection to Joplin, basically, and I think that defines the entire area right there. And I think that has to be a major priority."

Holifield reminded the Board that the goal of tonight's meeting and the retreat at Mt. Magazine was to look at the big picture items, such as downtown development and I-49 annexation, as near-term and long-term actionable items that the Board should place a focus on while leaving the mundane chores of operating the city to the people hired to deal with such tasks.

"Just because something doesn't show up on your priority list doesn't mean it's not a priority and doesn't mean it's not important, (it) doesn't mean it's (not) marching forward. What you're doing, the role of the Board is to be the bow of the ship and pointing toward the horizon and saying, 'This is where we're focused,'" he said. "Stuff that is being taken care of on a routine basis needs to be taken care of by staff, but you don't need need to spend a lot of time rehashing stuff that doesn't really warrant the Board's attention because if you're down in the engine room dealing with routine stuff that's already on auto pilot, you're not up in the bow of the ship wrestling with what's on the horizon."