2010-10 Faulkner County Business Journal

Issues unnoticed This November’s election has been one of the most politicized, advertized and scrutinized in decades. Voters have been overwhelmed with television ads and direct mail. However, two issues that could affect voters more than who their next Senator or Congressman is have gone mostly unnoticed. That has some local leaders very concerned.

TWO ITEMS THAT MAY GO OVERLOOKED, PAGE 5

Technology, politics, food and more

W

elcome to the second issue of the Faulkner County Business Journal.

As an “early adopter” of this publication I hope you see improvement and value in every issue. This month’s Journal promises to notCir. disappoint. Our 1125 Charlotte 14 Summerland Ct. feature story is on Arkansas Constitutional Issues 2 and 3. With the November election approaching, we thought it was important to shed some light on

these two lesser known ballot questions. We also get a look behind the scenes at one of Conway most exciting new businesses, First Orion. In two years, First Orion has carved a place for themselves in the smartphone app market. Finally, we take a moment to preview two of the Chamber’s highest profile events. Taste of Conway and Business Expo. The two events take place on Oct. 26 and 27 at the new Faulkner County Fairgrounds. There is

still time for your business to participate in Faulkner County’s largest business event. This year we’ve got something for everyone whether you’re a business owner, employee or just a neighbor in Faulkner County. With these stories and more we hope to give you the most in depth look at Arkansas’s most exciting economy. Enjoy.

BRAD LACY PRESIDENT, CONWAY AREA CHAMBER OF COMMERCE

40

Old Morrilton Hwy

Gentry Lake

Robins Lake

Days Lake

64 65

Skyline Dr

Cadron Valley Country Club

64

Meadowlake Rd

Donaghey Ave

Gleason

65 65

64 1045 Burrow Ave.

r St

Centennial Valley Golf Club Gatlin Park

t

er S

Hendrix College

krid

Har

Tyl e

Mountain View Park

Donaghey Ave

Salem Rd

1040 Georgetown Dr.

266

65 40

60

ce

n Pri

Oak St

E Oak St 64

St

Laurel Park

Caldwell St

E Oak St

60

Conway Country Club

65

Fifth Avenue Park

Airport Park

Central Baptist College

Dennis F Cantrell Field

384 Pippinpost Dr.

Highway 60 W

S Salem Rd

60

Oak Grove Cemetery

University Of Central Arkansas

730 Slope Dr.

SH

286

ider arkr

Dave Ward Dr 286

St

286 65

365

1305 Josita Circle Brumley

TOP 5 RESIDENTIAL home sales in faulkner county - september 2010 Price $650,000.00 $336,231.00 $290,000.00 $267,000.00 $266,000.00

Address 384 Pippinpost Dr. 1045 Burrow Ave. 1040 Georgetown 730 Slope Dr. 1305 Josita Circle

Bed 5 3 4 4 4

Bath 6 2 3 3 2

HBA 0 1 1 0 1

Subdivision Pippinpost The Village at Hendrix Chestnut Meadows Saddletop Catherine Place

Sq. Ft. 5,800 2,102 2,804 2,797 2,747

$/Sq. Ft. 116.38 159.96 106.63 96.17 97.56

Built 1993 2010 2008 1993 2006

City Conway Conway Conway Conway Conway

FAULKNER COUNTY BUSINESS JOURNAL | 3

Displaced workers from IC and SAS use new HP workstations at Conway Adult Education provided by a grant from the Conway Chamber and Conway Development Corporation.

partnership benefits transitioning workers

The current economic slowdown has displaced a record number of workers nationwide. Central Arkansas has not been immune to the job losses. This had one Conway organization feeling the impact in a big way.

The Conway Adult Education Center is an organization dedicated to the philosophy of life-long learning. Their goal is to meet the challenges of change by helping adults and families become more functional and productive through education and training. Through workforce development programs like Career Readiness Certification and 4 | FAULKNER COUNTY BUSINESS JOURNAL

STEPPING IN

In May, the Conway Adult Education Center put to use 10 new HewlettPackard workstations purchased with a $10,000 joint grant from the Chamber Education Committee and the Conway Development Corporation.

Technology Certification, CAEC helps workers in transition find their best place in the local economy.

Ruth Ann Williams, director of the CAEC, said layoffs from regional employers created an overwhelming demand for CAEC’s services. “The number of dislocated workers coming

to our WAGE Training center created a situation where we needed waiting lists.

“The majority of people were coming from manufacturing plants such as SAS and IC. The employees needed to change their career paths. Therefore, we needed computers to assist more people,” she said.

That is where the Conway Area Chamber of Commerce and the Conway Development Corporation stepped in. In May, the CAEC put to use 10 new Hewlett-Packard workstations purchased with a $10,000 joint grant from the Chamber Education Committee and the Conway Development Corporation.

Brad Lacy, President of the Chamber, said he viewed the $10,000 as an investment rather than a gift. “CAEC fills a crucial role in our local economy.

Making sure they have the tools they need to train and retrain our workforce is an obviously important part of our economic development strategy.”

According to Williams, the workstations have been in constant use since they came online.

“Many of our students have found jobs using their new skills, and many have entered postsecondary school.

It’s been wonderful. We’ve had such a demand for our services. I don’t know how we would have handled it without the computers.”

TWO voting issues that may go unnoticed in november This November’s election has been one of the most politicized, advertized and scrutinized in decades. Voters have been overwhelmed with television ads and direct mail. However, two issues that could affect voters more than who their next Senator or Congressman is have gone mostly unnoticed. That has some local leaders very concerned.

The issues at hand are two amendments to our state constitution. They each impact in some way the ability for public bodies to bond finance large projects. Without their passage, many say infrastructure development and corresponding job growth in Arkansas will be at a standstill.

Issue No. 2

Issue No. 2 is an amendment to the state constitution’s laws on usury and interest rates. The amendment would remove the existing method of determining the interest rate cap on all governmental bonds and loans. Tax-backed municipal bonds are responsible for the majority of municipal capital projects in Conway. These are things like streets and fire and police stations.

Tax-backed bonds are currently limited to interest rates only 2 percentage points above the Federal discount rate.

That rate is at a historic low. This has created a situation where public bonds in Arkansas have become difficult, if not impossible, to sell. The impact has been a virtual moratorium on locally financed public investment.

Conway Mayor Tab Townsell says the halt in construction isn’t because of economic woes, but because of statutory restrictions. “No city or county has issued tax-based bonds in two years.

Conway has the means to help itself, if it weren’t for these super restrictive state usury laws. We could raise $40 million in new revenue without raising taxes. We wouldn’t need the federal government’s stimulus plan. We could lift ourselves by our own bootstraps.”

While they face the most restrictive guidelines, municipal governments are far from the only organizations that rely on bond financing for public necessi-

ties. Any public bonds paid back with revenue other than taxes are also tied to below market rates. Conway Corporation is currently planning a new wastewater treatment facility to replace the Stone Dam facility and accommodate growth.

The project is currently scheduled to go to bid in mid-2011.

Unpredictable bond markets and interest rates have Conway Corp.

CEO Richie Arnold on edge. “Without passage of Issue 2, it is possible that we would be unable to raise the funds necessary to complete this important project.”

Arnold says the alternative is to utilize debt with “shorter maturities which require higher than desired retail rates.”

Issue No. 3

In 2004, voters overwhelmingly passed an economic development incentive known as Amendment 82. That incentive allowed the state to issue bonds to recruit companies that created 500 jobs and made a $500 million capital investment. The incentive was designed mainly to attract automotive

manufacturers. Since its passage it has never been used.

Issue No. 3 seeks to give the Governor and the Legislature the authority to issue bonds to recruit companies and remove the requirements job creation and capital investment restrictions. It offers the state much greater flexibility while preserving the existing cap on the annual amount of money that can be dedicated to bond repayment. The Arkansas State Chamber of Commerce recently identified 25 major economic development projects that landed in Arkansas’s border states. These were all projects that Arkansas competed for unsuccessfully.

Together these projects created more than 10,000 jobs and represented $4.5 billion in investment.

Conway Area Chamber President Brad Lacy says now is the time to change the incentive. “Arkansas is losing economic development projects to surrounding states. They have bonding tools and flexibility that aren’t available to us. History shows, that when Arkansas has the opportunity to compete on equal footing, we win more than our share.”

We Wouldn’t Ask if it Wasn’t Important

There are Chambers of Commerce around the country that chomp at the bit to inject themselves into every political race. That hasn’t been our model and we don’t expect that to change. However, when we can fill the role of educating voters about little known, but very important, issues affecting their economic security we feel a responsibility to speak.

Issue No. 2 is an amendment that will allow communities to help themselves. Currently, antiquated state finance laws combined with a modern day reinvention of federal interest rate policy prevents cities like ours from investing in their own infrastructure, using their own money. In plain speak, state law keeps public bond rates so low that no one wants to buy them. They are so low, in fact, that they jeopardize our ability to take on any significant public repair or construction projects.

Things like streets, wastewater facilities, fire stations. Necessities. Passing Issue No. 2 will allow public bonds to be issued at competitive rates. It will let communities build the infrastructure and facilities they need to not only survive, but thrive.

Issue No. 3 will give Arkansas the same tools to compete for jobs that neighboring states have had for years. In 2004, Arkansans overwhelmingly voted for Amendment 82. Amendment 82 gave our state the ability to issue bonds for large economic development projects. Really large projects. So large that this incentive has never been used.

Meanwhile, no less than 25 companies have invested over $4.5 billion and created over 10,000 jobs in our bordering states because they are able to compete for smaller investment, but equal impact projects. Passing Issue No. 3 will remove the current investment threshold that is honestly unrealistic.

Arkansas’s state government will have an economic development incentive they can use.

We don’t doubt that voters from either party will go to the polls with newfound energy and purpose this November. Please save some of that energy for these important issues that don’t necessarily lead the ballot.

The combination of these two amendments passing gives Conway and Arkansas the ability to prepare for economic growth strategically and compete for jobs tactically. That is how job creation works. That is why we ask you to vote FOR state Issues No. 2 and 3 on November 2nd.

FAULKNER COUNTY BUSINESS JOURNAL | 5

The Chamber Expects more than 100 business to participate in this year’s Business Expo on Oct. 26 and 27.

New Location, Programming and Sponsor IN STORE for Conway Business Expo This October 26th and 27th Faulkner County’s business community will have an opportunity to “explore” the local economy like never before. Chamber VP of Operations Bart Shaw says that this year’s Business Expo and Taste of Conway will take on an “Explore” theme that complements the size of the event and the 2010 presenting sponsor, Chesapeake Energy.

“Chesapeake is a leader in gas exploration. Our local economy has grown to a size where it takes events like these just to keep up with new business opportunities. Explore is an invitation to small businesses, job seekers, entrepreneurs and residents to participate.”

Business Expo and Taste of Conway outgrew the Don Owen center just in time to take advantage of the new Faulkner County Fairgrounds Exhibition Hall. The 40,000+ square foot facility gives Business Expo almost unlimited opportunities to expand the footprint of the expo and programming.

Shaw expects over 100 exhibitors for the Expo and close to 1,000 attendees 6 | FAULKNER COUNTY BUSINESS JOURNAL

More than 30 area restaurants and caterers are scheduled to participate in the 2010 Taste of Conway. Tickets are available at the Conway Area Chamber of Commerce.

for Taste of Conway. He also says that he hopes this year’s event won’t just be bigger, but better. “We’ve added so many facets to these two events. Taste of Conway will have more restaurants and more interactive, creative displays than ever before. We’re going to announce the results of the Conway2025 plan at our first ever Business Expo Breakfast. The expo itself will have a

full slate of programs and some surprises as well.”

The Business Expo will kick off at 5 p.m. Tuesday, October 26th with the Taste of Conway event. Attendees are able to sample featured selections from over 30 area restaurants and caterers. The event takes place in the midst of Business Expo booths and offers exhibitors an opportunity to showcase

their business in a fun, casual setting.

Wednesday will start with an 8 a.m. breakfast for community members and exhibitors. This year the Conway2025 strategic plan will be released during the breakfast. Attendees will be the first to see the results of the yearlong planning effort. At 9:00 the formal expo begins. Throughout the day there will be speakers and panels on issues affecting small business. Chesapeake Energy will be on hand to talk about the business opportunities related to Compressed Natural Gas engines.

They will have on hand a “chopper” that was featured on the hit television show “Orange County Choppers.” The cycle runs on compressed natural gas.

Chesapeake will be joined by more than 100 other exhibitors from all sectors of central Arkansas’s economy.

Tickets to Taste of Conway are $15 in advance and $20 at the door. Tickets to the breakfast announcing Conway2025 results are $10. They are available at the Conway Area Chamber of Commerce. Attendance to Business Expo is free. Businesses interested in having a booth at Business Expo should e-mail mary@conwayarkansas.org or call the Chamber at 501.327.7788. For more information, visit www.ConwayArkansas.org.

Conway Economy at a Glance Unemployment Rate July 2010 US ....................................9.5% Arkansas............................7.4% Faulkner County .............. 7.5% Conway..............................6.4% Labor Force July 2010 Conway Employed........................25,674 Unemployed.....................1,753 Total................................27,427 Faulkner County* Employed........................51,525 Unemployed.....................4,150 Total................................55,675 *Includes Conway Sales Tax Collections Conway* June 2010........................$1,829,278 2009........................$1,753,505 Percent Change 4.3% Total Year to Date (June) 2010 .....................$10,662,206 2009 .................... $10,140,174 Percent Change: 5.2% *Tax Rate 1.75% Faulkner County* June 2010...........................$668,612 2009...........................$689,479 Percent Change -3.0% Total Year to Date (June) 2010........................$3,731,769 2009 .......................$3,775,880 Percent Change -.1.2% *Tax Rate 0.5% Restaurant Sales July 2010 .................... $11,707,407 2009......................$10,978,330 Percent Change 6.2% Sales year to date (July) 2010......................$80,311,931 2009 .....................$76,674,525 Percent Change 4.8% *Includes Alcoholic Beverages Hotel Sales (July) 2010........................$1,543,528 2009 ...................... $1,406,913 Percent Change 0.9% Sales Year to Date (July) 2010......................$10,835,936 2009..................... $10,375,531 Percent Change 3.6% Building Permits Single Family Residents Year to Date Through August 2010 ...................... 175 permits

2009 ..................... 198 permits Percent Change 3.2% Total for the Year 2009 ..................... 259 Permits 2008 ..................... 192 Permits Percent Change 34.9% Average Construction Cost Year to Date (August)* 2010.......................... $172,478 2009...........................$176,662 Percent Change -5.9% *Not including land or lot improvements Average Square Footage Year to Date (August)* 2010 ..........................2,630 2009 ..........................2,583 Percent Change: 3% * Total under Roof Lottery Sales Faulkner County August.......................$1,322,82 From Inception*.....$17,141,758 Per Capita ...................$160.47 Total State August ..................$34,963,177 From Inception*...$442,844,870 Per Capita.....................$155.09 * Lottery began Sept. 28, 2009 Natural Gas Wellhead Price per MCF* August 2010 ......................... $4.22 2009.......................... $3.14 2008 ......................... $8.32 Yearly Average 2009 ......................... $3.71 2008.......................... $8.07 2007.......................... $6.37 2006 ......................... $6.40 2005 ......................... $7.33 2004 ......................... $5.46 2003 ......................... $4.88 2002 ......................... $2.95 *1000 cubic feet Number of Wells* Faulkner County..................215 Total in Field . ..................2,866 *As of Aug. 19, 2010 Estimated Life Time Value of Production* Total Field.........$6,255,299,107 *As of June 10, 2010 Natural Gas Severance Tax Distribution Conway September....................$17,597 Year to date..................163,316 Faulkner County September....................$13,662 Year to date................$126,563

Information provided by pulseofconway.com

8 | FAULKNER COUNTY BUSINESS JOURNAL

F’VILLE Shale Exploration Boosts Faulkner Economy

The estimated $115 million for 2010 consists of $70 million in wages, $12 million in purchases of goods and services, $7.7 million in Ad Valorem taxes, $428,000 in severance taxes and $25 million in royalties to mineral rights owners.

Considering that Conway is the trade center for Cleburne, Conway and Van Buren counties, where the majority of the wells are located, much of the economic gains in those counties finds it way to Faulkner County further surpassing the estimated $115 million impact.

in Faulkner County.

The assessed value of the transmission lines is $13.6 million and the tax revenue on these lines is $681,000.

Personal property, essentially machinery and equipment, owned by this industry is assessed at $54 million. The tax revenue on this is $2.65 million.

Most of the trucks are leased by the exploration companies and the personal property tax paid by leasing companies is not identified as to the lessee.

Real estate owned by the industry is assessed at $5.7 million by the County Assessor’s office with estimated taxes of $285,000. The majority of this real estate is located in Conway, and the city, school district and county are all recipients of this tax revenue.

Southwest Energy is building their regional office in The Village at Hendrix with an estimated cost of $14 million. The taxes on this building are estimated at $140 thousand and will not be paid until 2012.

Altogether, ad valorem taxes paid by this industry in Faulkner County are estimated at $7.7 million for 2010.

Wages

Royalties

BY ROGER LEWIS

The gas exploration industry has an annual impact exceeding $115 million on Faulkner County’s economy in terms of employment, taxes, payments to vendors and royalties. It is a buffer that has helped keep Faulkner County from sliding into the national recession.

According to the Arkansas Department of Workforce Services, there are 35 firms in the Natural Resources and Mining sector in business in Faulkner County, employing an average of 770 employees with a weekly wage average of $1,678. It is the highest weekly wage of any business segment in the county. This amounts to a weekly payroll of $1.3 million and an annual payroll of approximately $70 million.

Industry Suppliers and Services

There are countless other employees serving the industry through contracted services and suppliers. Data for the amount that the firms engaged in gas exploration spend on goods and services in the county are not available. The amount of money is formidable and I’m going to roughly estimate it to be around $12 million annually.

Ad Valorem Taxes

Ad valorem taxes are taxes paid on the assessed value of property. The value of natural gas produced, transmission lines, real estate and personal property owned by the gas exploration companies are all subject to ad valorem taxes.

The tax rate in Faulkner County varies by school district and city. They range from 42.2 to 53.7 mils (total of county, city and school district). An average of 50 mils is used for calculations in this article.

The assessed value of gas produced in Faulkner County for 2010 to date is $19,384,110. A projected value for all of 2010 is $30 million. The taxes on $30 million at 50 mils, is $1.5 million. The majority of the tax revenue goes to Greenbrier and Quitman school districts where most of the wells are located

Owners of the mineral rights are paid a royalty on gas produced. The minimum royalty rate, by law, is 12.5 percent of the wellhead price. Many have negotiated rates of 15 percent and higher.

The well head price of natural gas has been severely depressed, and the monthly average of $4.40 per thousand cubic feet for 2010 is down from $8.07 for 2008. The estimated wellhead value for natural gas production in Faulkner County for 2010 is $180 million. Royalties’ on this production at 12.5% is $22.5 million, and at 15% it is $27 million. We will use $25 million as the estimated figure.

Severance Tax

The severance tax on natural gas was increased by the Arkansas legislature in 2008 from three tenths of one cent (.003) per thousand cubic feet to 5 percent of the well head price with provision for a lower rate for the first 24 to 36 months. The severance tax revenue in 2008, under the old rate was $1.3 million.

For 2010 the revenue is projected to be $55 million.

Ninety-five percent of the severance tax revenue goes to the Arkansas Highway and Transportation Department (AHTD). By law, AHTD must distribute 30 percent of revenues to cities and counties for roads and transportation.

The formula for distribution differs for counties and cities. The city of Conway will receive an estimated $218,000, other municipalities in Faulkner County will receive $41,000 and Faulkner County will receive $169,000 in 2010 for a grand total of $428,000.

More information on the impact of the Fayetteville Shale can be found at Pulse of Conway website, pulseofconway.com.

area FAMILY dining SPECIALS

MONDAYS

Denny’s Restaurant

815 East Oak Street 329-6638 Kids (10 and under) eat free *4-9 p.m.

Gusano’s Pizzeria 2915 Dave Ward Dr., Suite 7 329-1100 Kids get 8-inch pepperoni or cheese pizza, drink included for $1.99 with purchase of adult entrée Mazzio’s Italian Eatery 2475 Washington Ave. 327-6703 2 FREE kids meals with purchase of a 2 or more topping large pizza from the regular menu.

4 FREE kids meals with purchase of two large pizzas with 2 or more toppings *After 4 p.m.

eat free *4-9 p.m.

Gusano’s Pizzeria 2915 Dave Ward Dr., Suite 7 329-1100 Kids get 8-inch pepperoni or cheese pizza, drink included for $1.99 with purchase of adult entrée Mazzio’s Italian Eatery 2475 Washington Ave. 327-6703 2 FREE kids meals with purchase of a 2 or more topping large pizza from the regular menu.

4 FREE kids meals with purchase of two large pizzas with 2 or more toppings *After 4 p.m.

The Fish House 116 South Harkrider St. 327-9901 Kids eat FREE with purchase of adult dinner *After 4 p.m.

Shorty Smalls 1475 Hogan Lane, Suite 123 764-1845 Kids eat FREE *3-10 p.m. (close)

Stoby’s Restaurant 805 Donaghey Ave. 327-5447 Kids eat FREE with purchase of adult entree *4-11 p.m. (close) *Limit two kids per adult

The Fish House 116 South Harkrider St. 327-9901 Kids eat FREE with purchase of adult dinner *After 4 p.m.

WEDNESDAYS

Stoby’s Restaurant 805 Donaghey Ave. 327-5447 Kids eat FREE with purchase of adult entree *4-11 p.m. (close) *Limit two kids per adult Stromboli’s 2665 Donaghey Ave., Suite 101 327-3700 Kids (12 and under) eat FREE with purchase of adult entrée *Dine-in only

TUESDAYS Denny’s Restaurant 815 East Oak Street 329-6638 Kids (10 and under)

Denny’s Restaurant 815 East Oak Street 329-6638 Kids (10 and under) eat free *4-9 p.m.

Mazzio’s Italian Eatery 2475 Washington Ave. 327-6703 2 FREE kids meals with purchase of a 2 or more topping large pizza from the regular menu.

4 FREE kids meals with purchase of two large pizzas with 2 or more toppings *After 4 p.m.

Stromboli’s 2665 Donaghey Ave., Suite 101 327-3700 Kids (12 and under) eat FREE with purchase of adult entrée *Dine-in only

THURSDAYS

Denny’s Restaurant 815 East Oak Street 329-6638 Kids (10 and under) eat free *4-9 p.m.

Mazzio’s Italian Eatery 2475 Washington Ave. 327-6703 2 FREE kids meals with purchase of a 2 or more topping large pizza from the regular menu.

4 FREE kids meals with purchase of two large pizzas with 2 or more toppings *After 4 p.m.

Moe’s Southwest Grill 625 Salem Rd., Suite 9 336-6500 Kids eat FREE with purchase of an adult entrée *Dine-in only

FRIDAYS Denny’s Restaurant 815 East Oak Street 329-6638 Kids (10 and under) eat free *4-9 p.m.

Mazzio’s Italian Eatery 2475 Washington Ave. 327-6703 2 FREE kids meals with purchase of a 2 or more topping large pizza from the regular menu.

4 FREE kids meals with purchase of two large pizzas with 2 or more toppings *After 4 p.m.

SATURDAYS

4 FREE kids meals with purchase of two large pizzas with 2 or more toppings *After 4 p.m.

Oak Street Bistro 800 Fourth Ave. 450-9908 Kids eat FREE all day Pizza Inn - Hogan 815 Hogan Rd., Suite 1 327-1900 Pizza Inn - Oak 724 Oak St. 329-3881 Kids eat at buffet for $0.99 *11a.m.-2 p.m. and 5-9 p.m.

SUNDAYS Denny’s Restaurant 815 East Oak Street 329-6638 Kids (10 and under) eat free *4-9 p.m.

Mazzio’s Italian Eatery 2475 Washington Ave. 327-6703 2 FREE kids meals with purchase of a 2 or more topping large pizza from the regular menu.

4 FREE kids meals with purchase of two large pizzas with 2 or more toppings *After 4 p.m.

Oak Street Bistro 800 Fourth Ave. 450-9908 Kids eat FREE all day

Denny’s Restaurant 815 East Oak Street 329-6638 Kids (10 and under) eat free *4-9 p.m.

Lenny’s Sub Shop 605 Salem Rd., Suite 9 336-8813 Kids eat FREE *Two children per adult

Mazzio’s Italian Eatery 2475 Washington Ave. 327-6703 2 FREE kids meals with purchase of a 2 or more topping large pizza from the regular menu.

Smoothie King 985 Carson Cv., Suite D 336-9555 Kids get FREE smoothies with purchase of adult smoothie *Noon-4 p.m.

FAULKNER COUNTY BUSINESS JOURNAL | 9

LOCAL COMPANY is emerging as A MAJOR PLAYER IN THE ‘APP’ INDUSTRY

FCBJ had the opportunity to interview Jeff Stalnaker, CEO and President of First Orion. First Orion is a two-year-old technology company headquartered in Conway.

What kind of company is First Orion?

We are a privacy company dedicated to providing consumers with Privacy, Protection and Preference on all their phones. We started with the smartphone world but will soon be available on Voice over Internet Protocol (VOIP).

When did First Orion open for business?

Feel free to include any “milestone dates.” Official business operations commenced on August 1, 2008 right here in Conway. A significant milestone was December 15, 2009 when we released the first version of PrivacyStar. February 19, 2010 was huge as we were featured for the first time by RIM (maker of Blackberry).

Since that time we’ve been a featured app 12 times.

August 5, 2010 – we released the Android version of PrivacyStar and featured Caller ID for users. September 3, 2010 – we released our Super App for BlackBerry which leveraged BlackBerry new Push Platform technology and added other enhancements.

Describe is the relationship between First Orion and PrivacyStar?

PrivacyStar is our service. First Orion is the corporate entity. We have started using PrivacyStar as our main name as our customers recognize it much easier.

How has the launch of PrivacyStar gone?

We’ve got over 300,000 registered users, filed over 70,000 complaints for our users with the FTC and CRTC. And, we’ve done over 4 million caller look-ups to identify calling numbers for our users. The Caller ID feature on Android and select BlackBerry smartphones is awesome.

How can people get PrivacyStar protection on their phone?

Download PrivacyStar by visiting our website, App World for BlackBerry users or the “Market” for android users. It is easy and only takes a minute to download and register.

Why locate in Conway, Arkansas?

The technical skills needed for our business are available here in Conway. As our business grows, Conway will continue to offer all skill sets needed, including technical, sales, customer service, etc. Con10 | FAULKNER COUNTY BUSINESS JOURNAL

Jeff Stalnaker, President and CEO of First Orion, says their PrivacyStar smartphone app has been downloaded by over 300,000 users.

way is unique in that the pool of technical companies and the job availability continues to generate a very skilled work force.

What are the next steps for First Orion?

We will implement PrivacyStar on our third platform – the new windows 7 mobile platform that will be soon be available. Also, our implementation on a VOIP platform will be either by year end or first quarter. Ad-

ditionally, expansion in other geographies will begin soon. However, critical for our long-term success is the continued enhancements to our service – such as address book protection and synchronization, SMS blocking, Caller ID for all smartphones, etc.

How many employees does First Orion currently have?

13 employees.

WHAT’S THAT GONNA BE? P

pattiCakes Bakery

attiCakes is a “scratch bakery dedicated to serving desserts reminiscent of a visit to Grandma’s.” It is also the dessert and baked goods supplier for Stoby’s restaurants in Russellville and Conway. This is their second location. They will be open Tuesday-Friday from 7 a.m.-7 p.m. and Saturday from 8 a.m.-5 p.m. PattiCakes will offer pastries, cookies, fudge, celebration cakes and a small take-out deli section. For more info visit www.pattiCakesbakery.net. n Where is that?

pattiCakes is located at 2106 Robinson Ave., behind Stoby’s restaurant.

n When will it be completed?

pattiCakes expects to be open by early November

n Who’s building it?

pattiCakes is operated by Patti Stobaugh. Moix Construction is the general contractor on this 1,400square-foot remodel.

FAULKNER COUNTY BUSINESS JOURNAL | 11