2012-01 Faulkner County Business Journal

W

e have the needs of a growing city, but we have had no change in expenditures in six years. We have not hired new firefighters or police officers in three years, and we have never had a capital budget for public safety. — Mayor Tab Townsell

City Asks Voters to Approve Sales Tax on Feb. 14 FULL STORY, PAGE 2

City Asks Voters to Approve Sales Tax Rededication on Feb. 14

The City of Conway is asking voters to approve a rededication of a quarter-cent sales tax. A special bond election will take place Feb. 14.

Initially approved in 2006, the quarter-cent sales tax currently is dedicated to paying debts from the police station construction bonds. If the rededication passes, oneeighth cent of that sales tax will retire the existing bonds

issued for the police station.

This one-eighth cent also will be used to issue bonds for two additional capital expenses: the modernization of the city’s fire truck fleet and the acquisition of sanitation vehicles and equipment.

The city will reallocate the other one-eighth cent to the general fund for operations.

“Having a financially stable general fund will remedy having to borrow money when the need arises,” Mayor Tab Townsell said. “Reallocating the quarter-cent also will allow

us to develop a capital budget for public safety and create a true reserves fund – all without raising taxes or creating new taxes.”

Townsell said that with Conway’s population increase has come an increase in the city’s operation costs.

“We have the needs of a growing city, but we have had no change in expenditures in six years,” he said. “We have not hired new firefighters or police officers in three years, and we have never had a capital budget for public safety.”

If voters approve the quarter-cent sales tax rededication, the Conway City Council has committed to purchasing new police vehicles annually from the existing Pay-As-You-Go quarter-cent sales tax. It also plans to invest in two new ladder fire trucks, three new pumper trucks and new digital radios for the fire department.

“We will have more police officers on the street more often, and our fire department will be better equipped to respond to emergencies,” Townsell said.

The City Council also has

resolved to commit $500,000 annually into a true general fund reserve. The goal is to create a $2 million reserve by 2016.

Early voting will be available Feb. 7-13 from 8 a.m. until 4:30 p.m. at the Faulkner County Courthouse. Voters will be able to vote at their precinct on the Feb. 14 election day from 7:30 a.m. until 7:30 p.m.

For more information about the special election, contact the Faulkner County clerk’s office at 501-450-4910.

Applications Available for Toad Suck Daze Scholarships For 30 years, the Toad Suck Daze Committee of the Conway Area Chamber of Commerce has held a fun, family-oriented festival on the streets of downtown Conway.

In addition to the festivities, the committee has developed a scholarship program to promote higher education in Faulkner County.

Since the Toad Suck Daze Community Service Scholarship Program began 30 years ago, it has contributed more than $1.2 million to scholarships and scholarship endowments. This year the committee will award $73,500 to deserving students in Faulkner County: • Three scholarships in the amount of $3,000 each will be awarded to students who plan to attend Central Baptist College, Hendrix College, and the University of Central Arkansas.

• Two scholarships in the amount of $1,500 each will be awarded to students who plan to attend the University of Arkansas Community College at Morrilton.

• The Faulkner County Single Parent Scholarship Fund will receive $1,500.

• The Toad Suck Daze Get Smart Challenge Scholarship Fund at the Community Foundation of Faulkner County will award five $3,000 scholarships to students who plan to attend UCA, Hendrix, or CBC. • An additional $27,000 will be added to the Toad Suck Daze Get Smart Challenge Scholarship Fund.

Graduates of a Faulkner County high school who plan to attend UCA, Hendrix College, CBC, or UACCM in the fall 2012 term are eligible to apply. Applications are available at these four colleges, all Faulkner County high schools and the Conway Area Chamber of Commerce.

The purpose of the Toad Suck Daze Community Service Scholarship is to encour-

4 | FAULKNER COUNTY BUSINESS JOURNAL

age community service among Faulkner County youth and to provide an opportunity for educational and community growth. For this reason, all scholarships require a minimum of 20 hours of active community service with a nonprofit organization in Faulkner County.

Applicants also must complete 10 volunteer hours with Toad Suck Daze during the 2012 festival.

Toad Suck Daze 2012 will take place May 4-6 in downtown Conway. The festival’s primary goal is to raise money for higher education in Faulkner County. It raises

funds through festival proceeds and sales of Toad Suck Daze T-shirts and merchandise.

To date, the Toad Suck Daze Community Service Scholarship Program money has helped more than 200 people attend area institutes of higher learning.

Conway Economy at a Glance Unemployment Rate November 2011 US ....................................8.6% Arkansas............................8.0% Faulkner County .............. 6.9% Conway..............................5.9% Labor Force November 2011 Conway Employed........................26,406 Unemployed.....................1,658 Total................................28,064 Faulkner County* Employed........................53,000 Unemployed.....................3,925 Total................................56,925 *Includes Conway Sales Tax Collections Conway- YTD October 2011......................$18,202,876 2010......................$17,944,223 Percent Change 1.4% Conway -Annual* 2010......................$21,868,102 2009......................$20,825,010 Percent Change 5.0% *Tax Rate 1.75 Faulkner County - YTD Oct. 2011........................$6,769,635 2010........................$6,408,192 Percent Change 5.6% Faulkner -Annual* 2010........................$7,834,226 2009........................$7,731,691 Percent Change 1.3% *Tax Rate 0.5% Restaurant Sales* Conway — YTD November 2011....................$137,995,207 2010....................$128,082,112 Percent Change 7.7% Annual Sales 2010....................$139,864,203 2009 ...................$130,911,970 Percent Change 6.8% *Includes mixed drink sales Hotel Sales Conway - YTD November 2011......................$17,477,258 2010 .................... $16,558,325 Percent Change 5.6% Annual Sales 2010......................$17,590,242 2009..................... $16,404,114 Percent Change 7.2% Building Permits Conway Single Family Residents Total for the Year 2011.......................153 Permits 2010 ..................... 223 Permits 2009 ..................... 259 Permits Percent Change -31.4%

Average Construction Cost* YTD - October 2011.......................... $204,387 2010...........................$182,340 2009...........................$179,264 Percent Change 2010 to 2011 12.1% *Not including land or lot improvements Average Square Footage* 2011.................................2,814 2010.................................2,722 2009.................................2,615 Percent Change 2010 to 2011 3.4% *Total under Roof Lottery Sales Faulkner County December................$1,441,342 Annual...................$16,768,678 Annual Per Capita .......$148.08 Total State December . ...........$39,180,699 Annual*................$470,572,805 Annual Per Capita........$166.31 Natural Gas Severance Tax Distribution December 2011 Faulkner County...........$17,809 Conway.........................$22,157 2011 Faulkner County.........$204,052 Conway.......................$254,822 Wellhead Price per MCF* October 2011 ................................$3.62 2010 ................................$3.69 2009.................................$3.60 2008.................................$6.38 Yearly Average 2010 ......................... $4.16 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..................266 Total in Field . ..................3,439 *As of May 12, 2011 Estimated Life Time Value of Production* Total Field.........$8,553,336,233 *As of February 10, 2011

Information provided by pulseofconway.com

Conway Housing Construction falls to Worst in TWO DECADES

BY ROGER LEWIS

Last year (2011) was the worst year for housing construction in the 20 years that I have been tracking this data. Only 167 family units were built consisting of 153 single family units, one duplex and one 12 unit apartment building.

The 167 units were just 17.6% of the 949 units built in 2010 and 20% of the ten year average of 843. The smallest number (since 1992) was in 2000 when 420 family units were constructed. The Wall Street Journal reported that in 2011 only about 300,000 newly built homes were sold in the U.S., the fewest since records began in 1963. The peak year was 2005 with 1.3 million new homes sold.

In Conway, during the ten years from 2000 to 2010, 9008 family units were constructed, 4248 single family and 4760 multifamily units.

The yearly average was 386 single family units and 433 multifamily units for total of 819 units per year.

This construction provided housing for the 15,471 increase in population in from 2000 to 2010. This shows a trend in housing choices, at least in Conway, where multifamily units trumped single family unit construction. 2005 was the first year that this happened. Single family homes are becoming more difficult to finance, particularly for first time home buyers. Apartments are more affordable and offer many amenities.

The banner year for multifamily complexes was 2005 with 1035 units built. However; the most recent three years, 2008-2010, the multifamily units constructed were 741, 874 and 726 respectively. During this period some very large apartment complexes were built ranging from 250 to 900 units.

Though fewer single family homes were built during the last three years, the average house is larger and more expensive. This, most likely, is driven by the fact the entry level housing is harder to finance both by the first time buyer and by builders who build speculation hous-

Single Family Home Construction in Conway

Average Average Average Year Number Sq. Ft* Value** Per Sq. Ft. 2009 259 2,615 $177,264 $67.87 2010 223 2,722 $182,340 $67.00 2011 153 2,814 $204,387 $72.64 * Square Footage of everything under roof, including garages ** Construction cost not including land or land improvements.

Value of Construction in Conway In Million Dollars Year 2011 2010 Residential $36.2 $74.9 Commercial 37.2 51.5 Industrial 17.1 1.3 Institutional 38.7 22.3 All other 1.1 0.7 Total $130.4 $150.7 ing. These days, many of the houses are custom built for those having the financing in place before construction. Also building costs, both material and labor, has held steady. The Single Family Home Construction table above illustrates this trend.

The overall construction industry in Conway has remained fairly strong in spite of the recession.

W

hile the numbers are still quite low ... this upward trend indicates that the market is slowly finding its footing and bodes well for the months ahead.

Commercial, industrial and institutional construction, remodeling and additions declined but not nearly as much as residential construction. The Value of Construction in Conway table below illustrates trends over the past four years. The local construction industry is greatly influenced by large projects such as those of Hewlett Packard, Southwest Energy, Conway Regional Hospital,

2009 $80.7 58.0 3.5 21.5 0.1 $163.8

2008 $82.2 30.8 6.5 21.5 0.2 $141.1

Hendrix College, Central Baptist College, Kimberly Clark and Conway School District recently. UCA’s construction is not included because UCA is a state agency and exempt from building permit requirements.

New home construction in the U.S. appears to be recovering somewhat as reported by various trade and finance journals. The U.S. Commerce Department reported that November was the third consecutive month to show an increase in sales of newly built single family homes. Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. States, “While the numbers are still quite low on a historic basis, this upward trend indicates that the market is slowly finding its footing and bodes well for the months ahead. Our concern is that overly restrictive lending conditions for both builders and buyers will constrain this growth and postpone the arrival of a recovery in housing and the overall economy.”

Last month (December 2011) Conway issued 22 permits for single family homes which was nearly double the monthly average of 12 for the previous 11 months. Perhaps 2012 may not be a banner year, but it may be the turnaround year, indicating a brighter future for the home building industry.

More information on building permits and real estate sales can be found at Pulse of Conway website. pulseofconway.com.

FAULKNER COUNTY BUSINESS JOURNAL | 3

CHAMBER ACCEPTING NOMINATIONS FOR ANNUAL MEETING AWARDS

Attended by more than 900 business and community leaders, Annual Meeting is Conway’s largest business event.

The 2012 Annual Meeting is scheduled for March and will feature a CEO-level speaker along with an award presentation honoring individuals and businesses that have made a difference in Conway over the past year.

“Annual Meeting is a chance for us to take time to appreciate the individuals and businesses that make Conway an even better place to live,” said Bart Shaw, director of operations at the Conway Area Chamber of Commerce. “Our city continues to flourish in large part because of them.”

The Conway Area Chamber of Commerce is now accepting nominations for the following awards: The Distinguished Service Award is the Chamber’s highest form of recognition.

Established in 1957, this award is presented annually to an individual or group who has rendered special service for the benefit of the community.

Candidates have demonstrated an active leadership role for the betterment of the community through their involvement in one or more business, civic and social service organizations.

Established in 1973, the

Good Neighbor Award is presented annually to an individual who has given of his or her time and talents. Candidates are known for going beyond

the call of duty to help others.

The nominee shall exemplify outstanding public service to the Conway area.

The Get Smart.Go Green Award recognizes a business or organization that is committed to “green” initiatives and fostering sustainability through environmentally friendly practices, thus impacting the quality of life in Conway.

The Business of the Year Award recognizes businesses for their continued growth, innovation and community involvement. It is the premier honor to the best overall business in Conway and is presented in four categories

based on each business’s number of employees.

The Business Executive of the Year Award recognizes the owner, executive or president of a business who has displayed outstanding performance in either an individual or collaborative endeavor. The nominee is a driving force behind the company and works to maintain an enriched business climate and an enhanced quality of life in Conway.

The Young Business Leader Award recognizes a community business leader, age 40 or younger, who has helped create a more vibrant business and social environment for all

of Conway’s residents.

The Minority Business of the Year Award is presented to a minority-owned business that has demonstrated success in their respective field and has become involved in the community. Nominees for this award will be the businesses and individuals that received awards at the Chamber Minority Enterprise Development luncheon held last September.

For more information or to submit nominations, email Bart Shaw at Bart@ConwayArkansas.org or stop by the Conway Area Chamber of Commerce.

The deadline for nominations is Feb. 1, 2012.

A

nnual Meeting is a chance for us to take time to appreciate the individuals and businesses that make Conway an even better place to live.

— Bart Shaw

Chamber Seeks Volunteers to Assist with Mission Appreciation At the beginning of each year, the Conway Area Chamber of Commerce delivers organizational information and a plaque to more than 900 members in Conway, Greenbrier and Vilonia as part of its Mission Appreciation.

4 | FAULKNER COUNTY BUSINESS JOURNAL

The Chamber could not accomplish this without extra help and is currently seeking approximately 50 volunteers to assist with the delivery.

“Our annual Mission Appreciation is a great way for individuals to receive volunteer hours for themselves and their business,” said Whitney Farris, director of communications at the Chamber.

“It also gives them an opportunity to network with potential new customers, whether these customers are fellow volunteers or the Chamber members they visit.” The Chamber will treat its volunteers to a kick-off breakfast on Thursday, Jan. 26, at 8 a.m., where they will meet other volunteers, receive their delivery packets and enjoy a meal spon-

sored by Central Baptist College.

The 2012 Mission Appreciation is also sponsored by Angela Conrad Inc., a business specializing in advertising and promotional items. To learn more about the 2012 Mission Appreciation or to reserve a seat at the kick-off breakfast, email Farris at Whitney@ConwayArkansas.org.

CITY CONWAY SUMMARY OF STREET PROJECTS CITY OFOF CONWAY SUMMARY OF STREET PROJECTS December 29, 2011

Prince Street - Western to Shady Lane (JCI Constr.)

5,200 feet of median divided 4-lane with Roundabouts at Farris Rd., Morningside Dr. and Salem Rd.

Funding Source

Estimated Begin Construction

Project Budget

Estimated Completion

Sales Tax

$

4,000,000 Sept 2011

Sept. 2012 Dec 2012

Farris Road - Bruce to Dave Ward (Paladino-Nash) 36' Curbed Street with 2 traffic lanes and bikes lanes.

Impact Fee

$

1,250,000 July 2011

July 2012

Old Military Road - McNutt Rd to New Elementary School Reconstruct Road to accommodate school traffic

Sales Tax

$

3,300,000 Aug 2011

Sept 2012

Nutter Chapel Road - Greens at Nutter Chapel to Old Military Reconstruct Road to accommodate school traffic

Sales Tax

$

850,000 Feb 2012

Sept 2012

New South Interchange (I-40 Mile 132) New interstate Interchange and 6,000 feet of median divided roadway from Hwy 365 to Sturgis Road approx 3/4 mile south of HP.

AHTD State City Sales Tax Grants Total

$ 9,058,000 $ 9,998,000 $ 13,419,000 $ 3,067,000 $ 35,542,000

July 2012

(Western thru Farris Section) (Farris to Shady Ln. Section)

2015

The following Projects are funded by Annual City Street Fund Budget With Labor and Equipment by Street Dept. Forces.

Budget amount shown includes only materials and outside contractors.

Washington-Fleming Roundabout (By City Forces)

Street Fund

$

120,000 Feb 2012

May 2012

Main Street - Front to Harkrider (By City Forces) Angle Parking with streetscape improvements

Street Fund

$

100,000 Oct 2011

Apr. 2012

Donaghey Ave - Prince to Tyler (By City Forces)

Street Fund

$

500,000 July 2011

Apr. 2012

Lower Ridge Rd . -U.S. 65 Intersection (By City Forces)

Street Fund

$

125,000 May 2012

Aug 2012

Front Street - College to Deer

Street Fund

$

45,000 Feb 2012

May 2012

Mitchell Street - Caldwell to Scott (By City Forces)

Street Fund

$

90,000 June 2012

Oct 2012

Oliver Street - Robins to Garvin (By City Forces)

Street Fund

$

50,000 Aug 2012

Nov. 2012

Lindsay Wygal was recently promoted to Vice President of Member Services at the Conway Area Chamber.

Wygal promoted at Chamber The Conway Area Chamber of Commerce is pleased to announce the promotion of Lindsay Wygal to Vice President of Member Services.

What’s that gonna be?

Russo’s Coal Fired Italian Kitchen Russo’s will be a 5,500 square foot, 205 seat full-service restaurant specializing in made from scratch Italian food and New York style pizza.

Where is that? 2490 Sanders (The former Village Inn) At Hwy 65 and Interstate 40.

When’s it gonna be open? Construction should be complete in March of 2012.

Who’s building it? Salter Construction of Conway is the General Contractor.

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In her new role, Wygal is responsible for managing the membership services and sales team. She is also responsible for developing the chamber’s suite of membership programming. Wygal joined the Chamber in September of 2010 as Director of Membership Services.

Under her leadership, the Chamber has added a successful LEADS program, expanded the Ambassador Program and in 2012 will become a site for the Chick-fil-a Leadercast. Chamber President and CEO Brad Lacy

said that Wygal has brought a renewed focus on membership benefit to the Chamber.

“Almost immediately, Lindsay was able to develop a membership program that creates a culture of retention for our organization and added value for all of our members. She has created or improved a number of opportunities for our members to grow professionally as well as grow their bottom line.”

Within the community, Wygal is a member of the Conway Rotary Club and Conway Regional Health System: Women’s Council Steering Committee. She serves on the Conway Symphony Orchestra board and Arkansas Community Foundation board and is a graduate of the Faulkner County Leadership Institute.

25

40

Chamber targets ‘swing shoppers’

TOP 5 RESIDENTIAL home sales 40

Old Morrilton Hwy

Gentry Lake

Over the last decade, Conway has evolved into a regional shopping destination. The Conway Area Chamber wants to take advantage of that status and persuade neighboring communities to make Conway their primary shopping home.

64

3705 Newcastle Cadron Valley Country Club 1930 Columbia

Sk

65 65 64

Tyle r St

Centennial Valley Golf Club Gatlin Park

Hendrix College

65

Conway

60

t

eS

nc

Pri

266

Donaghey Ave

Salem Rd

ke -dan

r

eD

ylin

Meadowlake Rd

Donaghey Ave

Gleason

t er S krid H ar

Laurel Park

Caldwell St

60

Oak

Oak St

St60

Conway Country Club

E Oa

60

65

A Central Baptist College Dennis F Cantrell F

Highway 60 W

Oak Grove Cemeter

330 Wellesley S Salem Rd

60

University Of Central Arkansas

286

arkr

Dave Ward Dr

SH

286

ider St

This spring the Chamber plans to target Maumelle with a direct mail program touting several local businesses.

The Chamber is currently looking for local businesses to partner with them on the publication.

As Conway has added new boutiques and nationally known brands not available in other communities, its “retail footprint” has expanded into a number of neighboring counties. “With our shopping centers and revitalized downtown, we have regular shoppers from 40 or 50 miles away,” said Jamie Gates, senior vice president of the Conway Area Chamber of Commerce.

“Twenty years ago, Conway was offering a very similar retail mix to many of our neighbors and one much smaller than Pulaski County’s.”

The Chamber plans to produce a Conway Shopping and Dining Guide written specifically for Maumelle residents. “The guide will highlight the convenience of shopping in Conway for Maumelle residents,” Gates said.

“It will include directions, drive times, and will feature shopping, dining and service opportunities they may not be aware of.” The guide will be delivered, by mail, to the 10,000 postal customers living in Maumelle’s primary zip code. Maumelle has grown by more than 60 percent over the last 10 years. The more than 17,000 Maumelle residents also have the highest median household income in Arkansas. Gates said Maumelle’s population and spending power make them an obvious choice for marketing.

“Conway is in the great position of being able to provide goods and services that are not available in Maumelle. We feel like we have an equal claim to those shoppers who may currently shop elsewhere. Basically, we want to influence their habits through awareness.”

For more information about how businesses can participate in the Conway Shopping and Dining Guide, email Jamie@ConwayArkansas.org or call the Chamber at 501-327-7788.

Robins Lake

64

365

Brum

286

Tupelo Bayou Site One Reservoir

2605 Collins Carter Lake

2830 Collins

PRICE

ADDRESS

CITY

BED/BATH

SUBDIVISION

SQ. FT.

$/SQ. FT.

YEAR BUILT

$650,000

2605 Collins

Conway

5/5/3

Cresthaven

6,500

$100.00

2002

$335,000

330 Wellesley

Conway

4/4/1

Wellington

3,370

$99.40

2006

$322,900

2830 Collins

Conway

4/3/1

Cresthaven

2,825

$114.30

2011

$296,900

1930 Columbia

Conway

4/3/1

Royal Oaks

3,763

$78.66

2003

$294,800

3705 Newcastle

Conway

4/3/0

Weatherstone

2,650

$111.25

2007

FAULKNER COUNTY BUSINESS JOURNAL | 7