2012-06 Faulkner County Business Journal

JUNE 2012

Moving into a $32 million addition Conway Regional’s new surgery department, OB rooms to offer community high tech, more space for health care.

FULL STORY, PAGE 4.

n EDITORIAL

SATURDAY IN CONWAY

What made the first Saturday in June in Conway so remarkable was that it wasn’t anything remarkable at all. There were a number of activities that took place without any real fanfare or notice from residents. This is interesting considering that any one of them would have been preposterous to propose as little as 10 years ago.

First, the community played host to more than 250 technology and creative types at an event called “Barcamp Conway.” That such a large number of people, from such an advanced field, would come to Conway from every corner of the state is a credit to our economic vibrancy and opportunity. What’s especially encouraging is that local entrepreneurs and tech professionals organized this event. We’ve got a talented and thriving tech community hard at work in Conway.

Second, a late morning visit to the farmer’s market in downtown Conway left us surprised with the number of vendors and shoppers still picking through what was left from the typical morning rush. It’s a full-fledged farmer’s market – dozens of vendors; hundreds of shoppers. It’s obviously an improved product from what we remember at the old fairground pavilions. There are a number of reasons, but the move downtown has to be chief among them. A decade ago, no one would have predicted that downtown Conway would have a thriving farmer’s market walking distance from millions of dollars in renovated buildings (much less a US Pizza).

While eating our pizza and salad, we saw more than a few kids in baseball uniforms.

They were here for a 93-team tournament that was in town. Big baseball tournaments aren’t unusual in Conway these days. But they were less than three years ago. For generations, Conway made due with subpar youth sports facilities. At least two generations of Conway kids played on fields that were in constant decline. Now Conway is, without a doubt, the premier destination for youth sports in Arkansas.

None of these changes happened overnight. And they didn’t happen by accident. The potential was always here and this is still a city with a lot of potential. One can only wonder what future Saturdays in Conway will look like.

If the past is any indicator, it will be something better than we can imagine.

2 | FAULKNER COUNTY BUSINESS JOURNAL

Conway to host 2013-17 AHSCA All-Star Activities

Central Arkansas residents will once again have a short drive to watch Arkansas’s best high school athletes compete in the Arkansas High School Coaches Association (AHSCA) All-Star Activities. The governing bodies of Arkansas high school athletics voted today to move the All-Star Week clinics and games to Conway starting in 2013. The fiveyear agreement will bring thousands of coaches, athletes, vendors and spectators to Conway each June.

“We are excited for the opportunity to bring the high school All-Star games and coaches’ clinic back to UCA and central Arkansas,” said Joey Walters, deputy executive director of the Arkansas Activities Associa-

tion. “We look forward to working with the City of Conway, Conway Convention and Visitors Bureau, UCA and Conway Public Schools. We think this will be a great event with much success.”

“Recruiting this event back to Conway was a team effort,” said Rachel Earls, Conway Area Chamber of Commerce director of destination marketing. “Conway has established itself as a premier location for youth sports. The All-Star games provide a great experience to high school athletes, and we are pleased that our team can take part in that experience.”

UCA will serve as the host site for student housing, the coaches’ clinic

and the baseball, softball, volleyball, basketball and football games. Conway High School will host the soccer games. A number of city and community facilities will host practices.

Conway and UCA previously hosted a number of All-Star Week activities for decades until 2002 when the events moved to Fayetteville.

Conway Mayor Tab Townsell says that Conway residents who remember the event will be pleasantly surprised with the new agenda.

“Over the last decade, the All-Star activities have grown to include more sports and more athletes. We’re excited that Conway has also grown into a place that can host such a large and high-profile event.”

Sponsorships Available for SMART Card

Local businesses have the opportunity to welcome more than 3,600 incoming freshmen to the Conway area by way of the collegiate SMART Card.

At the start of the 20122013 school year, the Conway Area Chamber of Commerce will distribute the promotional discount card to college freshmen on the campuses of Central Baptist College, Hendrix College, the University of Central Arkansas, and the University of Arkansas Community College at Morrilton.

The SMART Card comes in the form of a plastic wallet card and a plastic keychain tag that is color specific to each college. Card sponsors’ logos and the SMART Card website will be printed on the back of the wallet card. The website address and a quickresponse, or QR, code will be printed on the back of

the keychain tag. Users can scan the QR code with their smartphones, which will send them directly to the SMART Card website that lists the sponsors and participating businesses along with their special offers.

This is the second year the Chamber has issued the SMART Card to college freshmen. In previous years, first-year students received “welcome bags”

filled with promotional items and fliers from local businesses. Whitney Farris, director of communications at the Chamber, said that the SMART Card is a modern, more environmentally friendly alternative to the “welcome bags” and was well received by last year’s college freshmen.

“The SMART Card is a greener concept that was a hit among technologically savvy college students,”

Farris said. “Participating businesses told us that they received several phone calls and visits from freshmen looking to redeem their special offers.”

To learn more about sponsoring the SMART Card or about serving as a participating business on the SMART Card website, contact Whitney Farris at 501-932-5411 or Whitney@ConwayArkansas. org.

Conway Economy at a Glance Unemployment Rate April 2012 US ...............................8.1% Arkansas.......................7.2% Faulkner County ......... 6.2% Conway.........................6.1% Sales Tax Collections Conway* March 2012................... $2,047,986 2011................... $1,932,327 Percent Change 6.0% Year to Date (March) 2012................... $5,569,826 2011................... $5,077,274 Percent Change 9.7% Annual* 2011................. $22,366,464 2010................. $21,868,102 Percent Change 2.3% *Tax Rate 1.75% Faulkner* March 2012...................... $763,331 2011...................... $710,620 Percent Change 7.4% Year to Date (March) 2012................... $2,105,935 2011................... $1,829,163 Percent Change 15.1% Annual* 2011................... $8,279,301 2010................... $7,834,226 Percent Change 5.7% *Tax Rate 0.5% Restaurant Sales* April 2012................. $13,710,212 2011................. $13,225,548 Percent Change 3.7% Year to Date (April) 2012................. $53,714,928 2011................. $48,791,134 Percent Change 10.1% Annual Sales 2011............... $151,462,797 2010............... $139,864,203 Percent Change 8.3% *Includes mixed drink sales Hotel Sales April

2012................... $1,603,167 2011................... $1,662,465 Percent Change (3.6%) Year to Date (April) 2012................... $6,273,110 2011................... $5,691,484 Percent Change 10.2% Annual Sales 2011................. $18,662,136 2010 ............... $17,590,242 Percent Change 6.1% Conway Building Permits Single Family Homes January - May 2012.................... 64 permits 2011.................... 63 permits Percent Change 1.6% Total for the Year 2011..................153 Permits 2010 ................ 223 Permits Percent Change (31.4%) Average Construction Cost* Annual 2011..................... $204,387 2010...................... $182,340 Percent Change 12.1% *Not including land or lot improvements Average Square Footage* Annual 2011............................ 2,814 2010............................ 2,722 Percent Change 3.4% * Total under roof Lottery Sales Faulkner County May 2012................... $1,363,920 2011................... $1,505,821 Percent Change (9.4%) Annual 2011................. $16,788,678 2010................. $17,540,450 Percent Change (4.3%) Total State May 2012................. $36,934,991 2011................. $43,660,063

Percent Change (15.4%) Annual 2011 .............. $474,879,701 2010............... $459,916,256 Percent Change 3.3% Natural Gas Severance Tax Distribution May 2012 Faulkner County...... $20,533 Conway.................... $25,375 Annual Faulkner County 2011...................... $204,052 2010...................... $171,543 Percent Change 18.9% Conway 2011...................... $254,822 2010...................... $221,225 Percent Change 15.2% Wellhead Price per MCF* March 2012 ........................... $2.13 2011 ........................... $3.90 2010 ........................... $4.36 2009............................ $3.72 2008............................ $8.29 2007............................ $6.56 Yearly Average 2011 ......................... $3.95.

2010 ......................... $4.48.

2009 ......................... $3.67 2008.......................... $7.97 2007.......................... $6.25 2006 ......................... $6.39 2005 ......................... $7.33 2004 ......................... $5.46 2003 ......................... $4.88 2002 ......................... $2.95 *MCF=1000 cubic feet Number of Active Wells* Faulkner County............. 316 Total in Field . ............. 4,133 *As of May 31, 2012 Estimated Life Time Value of Production* Total Field.. $11,382,327,198 *As of November 31, 2011.

Information provided by pulseofconway.com

Investing in america

By Roger Lewis

These are trying times with persistent high unemployment, a collapsed housing market and continuing bank failures.

Although we are in a recovery period, we are far from being recovered compared to the prerecession era before 2008. The conversation of the day is mostly about making a smaller government, reducing expenditures, lowering the debt and lessening regulation.

Many believe that these are the solutions to make this country economically stronger. Others believe that this will lead to a contracting and downward spiral in the U.S. economy.

History has demonstrated that bold decisions to invest in America have paid off handsomely and have helped make this country the strongest economy in the world. Many of these investments were birthed in the worst of economic times.

During the Civil war when the country was in political turmoil and the U.S. debt grew from $65 million prewar to $2.2 billion by the end (an increase of approximately 3,350%), two bold investments were made.

The first was for the transcontinental railroad, and the second was the Morrill Act to establish land grant colleges. Congress passed the Pacific Railroad Acts of 1862 and in 1864, authorizing 30 year bonds to finance the construction of the railroad. The Morrill Act of 1862 gave each state 30,000 acres of public land for each senator and representative to endow colleges in each state. The return on these investments is beyond comprehension.

Then in 1935 during the great depression, the Rural Electrification Administration Act was passed authorizing low cost loans to electric cooperatives to expand electric service to rural areas. Only ten percent of farms had electricity then, and

this increased to ninety percent by 1950. Federal and state parks and public facilities, still in use today, were constructed during the depression with public works programs. Petit Jean State Park is one example.

President Franklin D. Roosevelt signed into law the Servicemen’s Readjustment Act of 1944, also known as the G.I. Bill of Rights. The program was implemented during Truman’s administration when the national debt was 109% of the Gross Domestic Product, far higher than today. Millions of WWII and subsequent veterans received college educations that rewarded this country with an educated workforce that repaid the cost of the program many times over and has had intergenerational effects.

Although in better economic times, President Eisenhower invested in the Interstate Highway system. This investment had a far greater effect than just being a better highway system; it created a need for expanded manufacturing of automobiles and trucks and for traveling accommodations. The whole concept of motels was created.

Can you conceive what Conway would be like today without Interstate 40?

There are many more examples of investments such as the Louisiana Purchase, the National Aeronautics and Space Administration, and the Department of Defense developing the global position system (GPS) and the Internet. The benefits of these investments continue in perpetuity.

Conway’s leaders also have a history of making bold investments that changed history.

In 1928 Hendrix College and Central College were in financial difficulty. Central College planed to close and Hendrix College was to be merged with Henderson-Brown (Arkadelphia) and relocated. (Central College eventually closed and

the facilities were acquired by the Missionary Baptist Association of Arkansas to form Central Baptist College.) Members of Conway Chamber of Commerce pledged $300,000 to keep the two colleges here. To raise this money they capitalized the earnings of the municipal-owned electrical company in 1929 to issue bonds, forming the Conway Corporation. A brilliant plan and Conway Corporation has become the proverbial goose that laid the golden egg.

In 1959 the Conway Development Corporation (CDC) was formed to acquire land and development an industrial park, the first small city (population 9,791) in Arkansas to do so. Seventy-seven Conway business and professional people contributed $44,000 to purchase and develop 174 acres. This small area south of the present airport has been expanded to include the east side of the Interstate to what is now the Guy Murphy Industrial Park. This park led to Kimberly Clark, FMC (now Snap on Tools), Rock-Tenn, Tokusen and numerous other industries to locate here.

In 2005 the CDC developed the Meadows Office and Technology Park, another bold investment that to date has landed Hewlett Packard, U S Able Data Processing Center and several small businesses.

The point of this article is that we should not blind ourselves from investing in America’s infrastructure, education system, public health, research and development and the American people in general, because our national debt is too high. The debt is high and it needs to be addressed vigorously, but good investments historically have a high return and will serve to strengthen our economy.

You can obtain more information by going to the Pulse of Conway website (www.pulseofconway.com).

FAULKNER COUNTY BUSINESS JOURNAL | 3

CONWAY REGIONAL

MOVING INTO A $32 MILLION ADDITION

new surgery department, OB roomS to offer community high tech, more space for health care

Conway Regional Health System is preparing to open the doors on the largest monetary investment in its history.

In the latest phase of its overall master facility plan, Conway Regional has added eight new obstetrics rooms to its women’s center and expanded its surgery department. Surgery cases will begin in the new space in mid-July.

The $32 million renovation and expansion project includes 10,000 square feet of renovated space, 85,000 square feet of new construction, and more than $5 million in new equipment. The project has had as many as 130 workers on the job over a period of almost two years. Forty-three subcontractors and vendors worked on the project under the oversight of general contractor Nabholz Construction.

The two-story addition is connected to the Barbara Harpe Nabholz Pavilion – home of the Conway Regional Women’s Center – and will provide more space for obstetrical, gynecological and surgical treatments as well as preventative health care services for women.

The women’s center now has a total of 24 obstetrics rooms to accommodate the growing demand of its birthing center. Last year 1,854 babies were born at Conway Regional, a 25 percent increase in births from a decade ago, with families coming here from throughout north central Arkansas.

Andrew Cole, MD, an obstetrician/gynecologist and member of the Conway Regional Board of Directors,

said, “I think we definitely have one of the nicest facilities in the state from a birthing and gynecologic standpoint. We have become a hub in the area of labor and delivery. I have patients coming from Marshall, Harrison, Mountain Home; a lot from Russellville. I had one patient who drove from New Boston, Texas, to have her babies here.”

The updated surgical facilities will include a new sameday surgery area and will offer physicians enhanced flexibility in scheduling and use. It also will be the new home of some of the most advanced surgical technology in Arkansas, including the highly acclaimed da Vinci® Robotic Surgical System.

“The new operating rooms and equipment are state-of-

4 | FAULKNER COUNTY BUSINESS JOURNAL

the-art,” said Lew McColgan, MD, General Surgeon. “This, along with a new building that will undoubtedly facilitate the efficiency of care within Conway Regional, is something the hospital and the city of Conway should be very proud to have as it moves to become a more prolific medical community.”

In fact Stryker, the manufacturer of the medical equipment, plans to use the Conway Regional Surgery Department as a regional show site because of the fully integrated, advanced surgical technology that is built into each of the eight surgical rooms.

Matthew Jackson with Stryker said, “There are not any rooms that we are opening up in Arkansas that are any more advanced than these.”

All of the rooms are equipped with “booms” that extend from the ceilings and support an array of surgical equipment and video technology. “It allows the physicians to have complete and total control of the OR using a single, 21-inch touch panel,” said Jackson.

The booms improve work flow and safety during surgical cases by taking cabling and equipment off floors and carts. Physicians and staff can maneuver surgical equipment, control lighting and check images, cameras and monitor screens from a central location. The booms also allow physicians to effortlessly move equipment and monitors from side to side during surgery.

Another high tech OR feature is an electronic surgery scheduling board that will en-

able the staff in the operations area to track the progress of individual surgical procedures.

Additional screens are being planned in areas outside of the surgery addition to update the status of procedures for family members in the future.

“Surgery has changed dramatically in the 25 years since our current operating rooms were built.

“This project gives us the technology, equipment and space to provide excellent health care for the next 25 years,” said Jim Lambert, President and CEO of Conway Regional Health System.

Mr. Lambert said the expansion is designed to meet the needs of the growing population in Conway and the surrounding area.

“The growth of the area demands this type of expansion to accommodate the health care needs of the community,” said Mr. Lambert. “As a community based, not-for-profit health system, it is our mission and responsibility to reinvest in health care services that benefit the community.” He added, “We are deeply grateful for the support we’ve received from this community over the past 70 years.”

Because Conway Regional is a not-for-profit hospital, it established the communitywide ONE Capital Campaign to raise awareness and funds for the project. The ONE Campaign highlights the connection between Conway Regional and the patients, families and neighbors it serves.

For more information about the Conway Regional expansion and the ONE Campaign, visit www.ConwayRegional. org.

EPA recognizes SWN for efforts to reduce emissions

The U.S. Environmental Protection Agency has named Southwestern Energy Company the 2011 Natural Gas STAR Production Partner of the Year.

The EPA bestows this honor annually to organizations that have demonstrated outstanding performance in reducing methane emissions, identifying and implementing new emission-reducing technologies and practices, and supporting the overall objectives of the Natural Gas STAR Program.

Natural Gas STAR is a flexible, voluntary partnership program that encourages oil

and natural gas companies to adopt proven, cost-effective technologies and practices that improve operational efficiency and reduce methane emissions.

Given methane’s role as both a greenhouse gas and clean energy source, reducing these emissions can have significant environmental and economic benefits.

Doug Jordan, SWN Health,

Safety, & Environment Corporate Environmental Program Manager, said that being recognized as the EPA Natural Gas STAR Production Partner of the Year is important to the company.

“This honor shows that our voluntary efforts to minimize methane emissions, conserve a natural resource, and minimize environmental impacts are recognized by an important partner — the EPA.” Mark Boling, president of SWN V+ Development Solutions, said the Natural Gas STAR Program serves as a model for how the industry

and regulators can collaborate to solve the difficult issues associated with natural gas development.

“We believe the development of America’s natural gas resources is an essential part of achieving a secure, lowcarbon energy future for our country but only if it is done right,” Boling said.

“Due to the hard work and innovation of our employees, SWN has driven down the incremental cost of conducting Reduced Emission Completions, or green completions, in 25 the Fayetteville Shale.

“At the same time we are

capturing an average of 16,000 MCF of natural gas per well that would have otherwise been vented or flared.”

The EPA presented SWN with the award at the 2012 Annual Natural Gas STAR Implementation Workshop recently held in Denver. SWN also received the 5-Year Continuing Excellence award at the event.

The workshop brings together Natural Gas STAR partners and industry experts from around the world to discuss the latest technologies and practices for reducing methane emissions.

40

TOP 5 RESIDENTIAL home sales

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PRICE $437,000 $381,500 $379,000 $338,000 $297,000

ADDRESS 5235 Bay Town 1015 Applewood Cove 353 Pippenpost Drive 3825 Newcastle Drive 2110 Millford

CITY Conway Conway Conway Conway Conway

BED/BA/HB 4/3/1 4/4/0 4/3/1 4/3/0 4/3/0

6 | FAULKNER COUNTY BUSINESS JOURNAL

SUBDIVISION SQ. FT. Fairways at Centennial 3,722 Applewood Cove 3,313 Pippenpost 4,097 Weatherstone 3,014 Weatherstone 2,624

$/SQ. FT. YEAR BUILT $119.43 2011 $117.72 2006 $97.61 1994 $119.11 2007 $118.14 2008

Dollar General

University Of Central Arkansas

Dave Ward Dr 286

Where is that? 2550 North Donaghey. Next to Arvest Bank.

Who’s building it? Van Tassel-Proctor is the general contractor.

Crafton Tull, Chamber Bowl for Business Bowling for Business, the Conway Area Chamber of Commerce’s annual networking and team building event, will take place Friday, June 29, at Conway Family Bowl. Crafton Tull is the presenting sponsor for this year’s event.

At Bowling for Business, Chamber members have the opportunity to network with other professionals in a fun and relaxed environment.

“We already have a cross section of our business community represented at this year’s event,” said Bart Shaw, vice president of operations at the Chamber.

“The past two years have been a success, and we hope to build on that.”

Bowling for Business offers a morning and afternoon “flight” separated by a luncheon. The morning flight is from 10 a.m. until noon, and the afternoon flight is from 1-3 p.m. Lunch is from noon to 1 p.m. During lunch, more than 200 professionals have the chance to interact while enjoying traditional bowling alley fare. Lunch is sponsored by Smith Ford and Southwestern Energy.

Lane sponsorships are available for $400, which includes signage at the event and a five-person team.

Five-person team sponsorships are available for $200, and individuals may bowl for $50. Lunch is included for all participants.

To participate in Bowling for Business, register online at ConwayArkCC. org/events. For information, contact Mary Margaret Satterfield, director of events, at Mary@ConwayArkansas.org or 501-932-5412.

New Merchants, Living Options Coming to Downtown Conway Downtown Conway continues to see steady enhancement as new and relocating businesses make their way to the heart of the city. In addition, more living space and the increased availability of commercial property contribute to the area’s vibrancy. Kim Williams, executive director of the Conway Downtown Partnership, outlined some of the changes coming to downtown Conway this summer.

Grand On Oak is a new business that will set up shop in the former Rose Cottage location. Owners Becky Bussey, Bobbi Jo Gwatney and Sena Lovett will have a sampling of home décor items, gifts, jewelry and women’s apparel. They plan to open the store in August or September.

Red Chaise Designs has recently located its offices downtown to 823 Chestnut Street.

Owner and interior designer Helen Lockhart said she had been looking for space downtown because of its central location and feel. “I really like the energy of downtown and wanted to be in a more central location so I can take advantage of everything Conway has to offer,” she said.

Kicks Active Wear is moving next door to the storefront formerly occupied by Something Blue. The athletic apparel outfitters wanted a larger space and plan to have a grand opening on July 1 in its new venue at 1014 Oak Street. In August or September, Achie Lewellen will open DearJohn in Kicks’ former location at 1020 Oak Street. The new retail store will sell high-end, gently used clothing and other items as well as new merchandise.

Becca White sought a

smaller space for The Hog Zone and will relocate her store across the street to the former Ann’s Trendy Kidz location.

Ann’s Trendy Kidz recently moved to Prince Street inside the Unhinged Attitudz storefront. The store that carries “all things Razorback” will open in its new location at 1103 Oak Street on June 18.

Beth Yockey, owner of Branch Out Paint Bar + Boutique, said the painting studio’s upbeat and creative art classes are the perfect fit for downtown Conway. Branch Out is currently located on North Donaghey Avenue and plans to relocate to Hog Zone’s former location at 1116 Oak Street. “We look forward to being right in the middle of the art, music and shopping that can be found in

downtown Conway. It’s a much better fit for us,” Yockey said.

On the west side of the railroad tracks, Brooks Fine Jewelry has moved to 1304 Oak Street. Kathy’s Upholstery will relocate to the corner of Oak and Parkway, along with a new pottery store.

Two more dining options are now available in downtown Conway with the opening of Milano’s Italian and Mexican Restaurant and Adelita’s Mexican Restaurant #2.

For other merchants looking to move to or open a new business downtown, the building that formerly housed Conway Music Company is available for sale. The property is 1,900 square feet and qualifies for a historic tax credit. Those interested should contact Chad

Russell at National Bank of Arkansas at 501-764-0200.

Commercial properties are available in the Covington United Center in downtown Conway. Covington Properties is currently renovating the former Log Cabin Democrat building and will build to suit any office needs. Log Cabin Democrat recently moved to the Federal Plaza, and Conway-based technology company Privacy Star will move to the Federal Plaza in July.

With the addition of new residential properties, downtown Conway is becoming more than just a place of business.

A renovated apartment complex located on the corner of Oak and Locust Streets will be available to lease on August 1. The one- and two-bedroom apartments will have washer and dryer hookups, wireless Internet access and new finishes throughout. Kim Williams says the apartments are ideal for young professionals who want an urban lifestyle and are within walking distance of all restaurants, retail stores, entertainment and the farmer’s market.

Cultural events and weekend activities abound in downtown Conway. The Arkansas Shakespeare Theatre continues at Hendrix Village through June, and free concerts in the park will take place during the summer and fall. The farmer’s market is open on Tuesdays, Thursdays and Saturdays from 6:30 a.m. until noon and features more than 30 food and craft vendors.

To stay informed about the latest news and events happening downtown, visit the Conway Downtown Partnership’s website at DowntownConway.org.

FAULKNER COUNTY BUSINESS JOURNAL | 7