OCTOBER 2013
DESTINATION CONWAY
C E N T R A L L A N D I N G
‘This project is a oncein-a-lifetime opportunity for our community. The scale, quality and variety of development Central Landing brings to Conway will truly set us apart’ — Brad Lacy
Conway Development Corporation president
2D — Sunday, October 13, 2013
Faulkner County Business Journal
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13-in-13 program to visit Snap-on Equipment The Conway Area Chamber of Commerce’s 13-in-13 program will take participants to Snap-on Equipment on Wednesday, Oct. 23, from 1011 a.m. The 13-in-13 program is free to the employees of Chamber member businesses. Space is available on a firstcome, first-served basis. Through the yearlong program, individuals have an opportunity to get an inside look into 13 businesses that have had a significant role in developing Conway’s economy. At each visit, 13 attendees gain insight into the history and operations of some of Conway’s largest employers. Previous visits have includ-
ed Acxiom, Kimberly-Clark, Hewlett-Packard, Southwestern Energy, RockTenn, Nabholz, the University of Central Arkansas and Virco. A visit to Conway Public Schools is scheduled for Tuesday, Oct. 15, and visits with Central Baptist College, Conway Regional Health System and The Village at Hendrix will take place later this year. Snap-on Incorporated is a leading global innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks. Products and services include hand and power tools,
tool storage, diagnostics software, information and management systems, shop equipment, and other solutions for vehicle dealerships and repair centers as well as for customers working in the aviation and aerospace, agriculture, construction, government and military, mining, natural resources, power generation, and technical education industries. Snap-on also derives income from various financing programs to facilitate the sales of its products. Products and services are sold through the company’s franchisee, company-direct, distributor and Internet channels. Founded in 1920, Snap-
on is a $2.9 billion, S&P 500 company headquartered in Kenosha, Wis. Snap-on Equipment is the world leader in automotive wheel service and collision repair equipment, including the most technologically advanced imagining wheel aligners, wheel balancers, tire changers, alignment lifts, general purpose lifts, brake lathes, frame measuring systems and frame straightening racks. The ISO-certified site opened in Conway in 1973. Two buildings occupy 235,000 square feet of floor space used
to assemble products, such as alignment machines, tire changers, wheel balancers, automated tool control units and collision instrumentation units. The business and its 185 associates have supported the Conway community for more than 40 years. Snap-on Equipment purchases roughly $42 million in material annually and assembles that material into finished goods that are shipped around the world, including finished goods from Conway to China. For more information or to make a reservation, email Lindsay Wygal at Lindsay@ ConwayArkansas.org.
Toad Suck Daze, Satterfield recognized at international convention Toad Suck Daze received top honors for its incident command structure during the International Festivals & Events Association’s (IFEA) 2013 Haas & Wilkerson Pinnacle Awards Ceremony. The ceremony is part of IFEA’s annual convention and expo. Toad Suck Daze took home the Gold Pinnacle Award in the category of “Best Emergency Preparedness & Risk Management Plan for an Event.” During the festival, organizers follow an incident command structure to minimize risk and provide emergency management upon necessity. Toad Suck Daze’s incident command is modeled after the system used by the U.S. Department of Homeland Security. The Conway Area
Chamber of Commerce developed the structure with help from the city’s fire and police leadership to ensure clear and efficient communication in case of an emergency. Toad Suck Daze was also recognized for its children’s programming and merchandise. It received the Silver Pinnacle Award in the “Best Children’s Programming” category and the Bronze in the “Best Other Mer-
chandise” category. The Pinnacle Awards draws entries from among the world’s top festivals and events. Winning entries came from organizations as diverse as the Kentucky Derby Festival, Memphis in May International Festival, 500 Festival in Indianapolis, Pasadena Tournament of Roses and the Burlington Sound of Music Festival in Ontario, Canada.
The recent IFEA convention was also an opportunity to recognize professionals in the festivals and events industry who have attained the Certified Festival and Event Executive (CFEE) designation. Mary Margaret Satterfield, director of events at the Conway Area Chamber of Commerce, was one of five professionals in the country to receive the credential this year. Requirements for obtaining the CFEE designation include experiential career achievements, required course work, published articles based on research pertaining to events, professional speaking requirements, and meeting the professional standards of the association and its assessment board. “As a representative of
the Toad Suck Daze festival, I have been an active participant at IFEA conventions for the past five years,” Satterfield said. “Pursuing my CFEE certification the past two years has provided me with even more vital information that I can apply to the festival and to other events at the Chamber.” About the International Festivals & Events Association Headquartered in Boise, Idaho, the International Festivals & Events Association offers the most complete source of ideas, resources, information, education and networking for festival and event professionals worldwide. In partnership with global affiliates under the umbrellas of IFEA Africa, IFEA Asia, IFEA Austra-
lia, IFEA Europe, IFEA Latin America, IFEA Middle East (MENASA) and IFEA North America, the organization’s common vision is for “a globally united industry that touches lives in a positive way through celebration.” **Photo Caption**: Mary Margaret Satterfield (third from right), director of events at the Conway Area Chamber of Commerce, has earned her Certified Festival and Event Executive designation from the International Festivals and Events Association. Satterfield was one of five professionals in the country to receive the credential at IFEA’s annual convention and expo this year. Photo credit: International Festivals and Events Association
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Sunday, October 13, 2013 — 3D
Faulkner County Business Journal
Chamber hosts small business Lunch & Learn By Elise Williams
The Conway Area Chamber of Commerce will host a Small Business Lunch & Learn on Tuesday, Oct. 29, at the Chamber, located at 900 Oak Street, from 11:30
a.m. until 1 p.m. The Chamber will present the Chamber Alliance Insurance Program, the “insurance package that fits in a small business budget.” This free luncheon and seminar will include in-
formation on the Affordable Care Act, the Arkansas Health Exchange, and what these two programs mean specifically to small businesses. Participants will also receive information on how the Chamber Alliance Pro-
gram can benefit their business. CAP is a unique opportunity for Chamber members in good standing to receive access to affordable insurance benefits. Packages include health insurance, group
term life, disability, dental and more. Employees of Chamber member businesses can attend the event at no cost. Reservations are required and seating is limited to the first 40 partic-
ipants. To make your reservation, visit ConwayArkansas.org or email Sandra@ ConwayArkansas.org by 5 p.m. Oct. 23. For more information call the Chamber at 501327-7788.
Tables available for annual Women in Business awards By Elise Williams
The Conway Area Chamber of Commerce’s second annual Women in Business Awards luncheon will take place Tuesday, Dec. 3, at the Conway Expo Center and Fairgrounds. The event will begin with a panel discussion at 9 a.m. followed by the awards luncheon at 11:30 a.m. “Women in Business is an annual event where the Chamber has the opportunity to honor women who have done outstanding things in our business community,” said director of membership development Whitney Cummings. “At the event, we will not only announce the five outstanding women in business, but one of those winners will also be named our Diamond Achievement Winner.” Guest speaker for the event will be Terri Jordan, vice president of technology for Microsoft Retail Stores. Jordan holds a Bachelor of Science degree in Mathematics and Computer Science from the University of Central Arkansas. “The thing about corporations is you need diversity, both in gender and other demographics, because it will make for a better product at the end of the day,” Jordan said at a 2011 visit to her alma mater.
Recipients of the inaugural Outstanding Women in Business Awards in 2012 were, from left, Holly Marr, former vice president/industry executive of Acxiom Corporation; Sonja Keith, co-founder of 501 LIFE Advertising and Publishing; Diamond Achievement recipient Linda Linn, co-owner of Linn’s Auto & Equipment Sales, Just Scrap It! Metal Recycling and U-Pull-It of Conway; Brandy Strain-Dayer, Strain Photography; and Toby Hart, founder of Take the Lead Academy Inc. The second annual Women in Business event will take place Tuesday, Dec. 3, at the Conway Expo Center and Fairgrounds.
In 2009, Jordan was recruited by the COO of Microsoft to be part of the founding leadership team of Microsoft Retail stores. Among her many accomplishments, Jordan formed the IT team that designed
and deployed the technological groundwork which led to the opening of the first Microsoft Retail stores in Scottsdale, Ariz., and Mission Viejo, Calif. Jordan and her team also opened a record 35 specialty
stores in a single day on Oct. 26, 2012, and were responsible for developing the first Windows Phone POS. Businesses are highly encouraged to reserve a table for the awards luncheon. To re-
serve a table, please visit ConwayChamber.org and click on the Women in Business icon. For more information contact Whitney Cummings at Whitney@ConwayArkansas.org or 501-932-5411.
4D — Sunday, October 13, 2013
Faulkner County Business Journal
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CONWAY DEVELOPMENT
‘Central Landing’ development announced for Conway
Largest project in city’s history will add millions to city revenue
I
n 2017, central Arkansas residents will have a new destination for shopping, dining, hotels and much more. Thursday, before a crowd of 200 area business leaders, the Conway Development Corporation and Jim Wilson & Associates, LLC of Montgomery, Ala., announced plans to develop jointly more than 150 acres of commercial real estate in the heart of Conway, Ark. Will Wilson, president and CEO of Jim Wilson & Associates, said the project has the potential to solidify Conway’s position as a regional shopping destination, spur redevelopment in aging commercial areas, and contribute new tax revenue and payroll to the local economy. City officials estimate the project will create an additional $2 billion in retail sales and $34 million in additional sales tax collections for the city over a 10-year period. “Together, with the CDC, we have an exciting new vision for the former airport site,” Wilson said. “We have a 40-year history in the commercial real estate business. It has been perfect preparation for a project just like this one. Conway is a great place, a vibrant town; we see great potential here.” Conway Development Corporation president Brad Lacy thinks the Conway market is ready for the record-sized project. “For the last several years,
Faulkner County has been recognized as one of America’s fastest growing counties for population and job growth. We are already an established, regional product in many ways. Central Landing will give us the setting to offer new amenities, not only to Conway, but central Arkansas.” A site plan revealed at the announcement featured a lifestyle component anchored by large retail stores and enhanced with specialty stores, restaurants, offices and multifamily properties. The retail phase of the project will be up to 750,000 square feet. “This project is a once-ina-lifetime opportunity for our community,” Lacy said. “The
scale, quality and variety of development Central Landing brings to Conway will truly set us apart.”
About Jim Wilson & Associates
Jim Wilson & Associates LLC, based in Montgomery, Ala., is a privately owned real estate company specializing in shopping centers, residential real estate investments, offices, condominiums, hotels and mixed-use developments. With more than three decades of real estate experience, JWA has developed in excess of 21 million square feet of shopping center space. The company’s development portfolio includes residential
communities and condominium residences, mixed-use developments, Class A office buildings, and hotel and country club assets. For more information, visit www.jwamalls. com.
About Conway Development Corporation
Conway Development Corporation is a nonprofit organization created in 1959 to promote the economic growth and development of the city of Conway, Ark., and of Faulkner County, Ark. The CDC attracts and secures the location of new business and assists in every way possible the future growth and expansion of area business and industry.
‘Together, with the CDC, we have an exciting new vision for the former airport site. ... Conway is a great place, a vibrant town; we see great potential here.’ — Will Wilson
president and CEO of Jim Wilson & Associates
6D — Sunday, October 13, 2013
C
onway Area Chamber of Commerce hosted its annual Business Expo on Thursday, Oct. 10, at the Conway Expo Center and Fairgrounds. The event included a breakfast, a business-to-business trade show and Taste of Conway. At the breakfast, Conway Development Corporation, together with real-estate services and management company Jim Wilson & Associates, unveiled plans to construct “Central Landing,” a 150-acre, $90 million mixed-use development at the site of the current airport. (Full story on page 4.) The trade show followed the breakfast and continued throughout the day and evening. This year’s trade show Pearce Heating & Air Conditioning Inc. featured more than 100 booths and doubled as a job fair. Attendees had the option to attend two informative lunch presentations. At 11 a.m., Alan Kizer, owner and operator of Chick-fil-A of Conway Commons, shared the history behind Chickfil-A’s outstanding customer service. At noon, Scott Bennett, director of the Arkansas State Highway and Transportation Department, provided updates on highway devel- Sandstone Real Estate Group opments in Conway and Faulkner County. The day concluded with Taste of Conway. From 5-7 p.m., 25 restaurants and caterers distributed samples of their best menu items. This year’s theme was Team Conway. Many vendors incorporated a team or sports theme into their Century 21 Dunaway & Hart booth decorations.
Faulkner County Business Journal
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Conway Corporation
Central Baptist College and Kangabloo Creative
Modern Woodmen Fraternal Financial
Lunch presenter: Alan Kizer, owner and operator, Chick-fil-A of Conway Commons Log Cabin Democrat
Lunch presenter: Scott Bennett, director, Arkansas State Highway and Transportation River Town Bank Department
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Conway Economy at a Glance Unemployment Rate July US........................... 7.4% Arkansas................. 7.4% Faulkner County ... 6.7% Conway................... 6.7% *Faulkner County & Conway not Seasonally Adjusted Sales Tax Collections Conway* July 2013............. $1,828,224 2012............. $1,855,774 Percent Change -1.5% Year to date (July) 2013........... $13,356,467 2012........... $13,199,637 Percent Change 1.2% *Tax Rate 1.75% Faulkner County* July 2013................ $696,356 2012................ $711,714 Percent Change -2.2% Year to Date (July) 2013............. $4,944,819 2012............. $4,934,141 Percent Change 0.2% Annual* 2012............. $8,465,686 2011............. $8,279,301 Percent Change 2.3% *Tax Rate 0.5% Restaurant Sales* August 2013........... $13,603,892 2012........... $13,458,675 Percent Change 1.1% Year to Date (August) 2013......... $110,322,149 2012......... $108,705,579 Percent Change 1.5% Annual Sales 2012......... $153,412,988 2011......... $144,646,055 Percent Change 6.1% *Including mixed drink sales Hotel Sales August 2013............. $1,547,034 2012............. $1,537,226 Percent Change 0.6% Year to Date (August) 2013........... $13,340,058 2012........... $13,451,516 Percent Change -0.8%
Annual Sales 2012........... $18,683,676 2011........... $18,662,136 Percent Change 0.1% Conway Building Permits Single Family Homes Year to Date (Sept.) 2013............ 110 Permits 2012............ 137 Permits Percent Change -19.7% Annual 2012............ 186 Permits 2011............ 153 Permits Percent Change 6.9% Average Construction Cost* Year to Date (Sept.) 2013................ $224,714 2012................ $210,246 Percent Change 6.9% Annual 2012................ $207,537 2011............... $204,387 Percent Change 1.5% Average Square Footage* Year to Date (Sept.) 2013...................... 2,965 2012...................... 2,933 Percent Change 1.1% Annual 2012...................... 2,910 2011...................... 2,814 Percent Change 3.4% Average Construction Cost Per Square Ft.* Year to Date (Sept.) 2013.................... $75.79 2012.................... $71.68 Percent Change 5.7% Annual 2012.................... $71.33 2011.................... $72.64 Percent Change -1.8% *Total under roof Lottery Sales Faulkner County September 2013............. $1,162,242 2012............. $1,072,401 Percent Change 8.4% Year to Date (Sept.) 2013........... $12,087,797 2012........... $12,800,495 Percent Change -5.6% Total State September
2013........... $32,483,166 2012........... $30,622,480 Percent Change 6.1% Year to Date (Sept.) 2013......... $333,620,693 2012 ........ $345,394,343 Percent Change -3.4% Natural Gas Severance Tax Distribution Conway July 2013.................. $27,116 2012.................. $11,760 Percent Change 130.6% Year to Date (July) 2013................ $157,494 2012................ $109,308 Percent Change 44.1% Annual 2012................ $162,457 2011................ $254,822 Percent Change -36.2% Faulkner County July 2013.................. $22,015 2012.................... $9,515 Percent Change 131.4% Year to Date (July) 2013................ $127,818 2012.................. $88,412 Percent Change 44.6% Annual 2012................ $131,418 2011................ $204,052 Percent Change -35.6% Wellhead Price per MCF* Yearly Average 2012......................$2.66 2011......................$3.95 2010......................$4.48 2009......................$3.67 2008......................$7.97 *MCF=1000 cubic feet Number of Active Wells* Faulkner County....... 350 Total in Field ......... 4,481 *As of December 12, 2012 Estimated Life Time Value of Production* Total Field....................... $11,382,327,198 *As of September 30, 2012
Information provided by pulseofconway.com
Sunday, October 13, 2013 — 7D
Faulkner County Business Journal
Conway’s subdivision development: The past, present and the future By Roger Lewis
Imagine standing on a street in Conway looking at a newlybuilt house. It might be an average 2013 house (2400 square feet, $250,000) or it might be a smaller “starter house,” built for first-time buyers. In either case, the price of the house reflects both the cost of construction and the cost of the lot. For the past several years construction costs have been relatively stable because neither materials nor labor have increased significantly. Construction includes garage, porches, and everything under the roof. According to building permit applications in 2013, construction costs in Conway are about $75 per square foot. Lot costs, however, are a different story. Although twenty years ago you could buy a building lot in a new subdivision for around $15,000 to $20,000, today, it is difficult to find anything under $35,000 and if you do it is likely to be a much smaller lot. Lots in Conway are generally in the $40 to $60 thousand range. The effect of this dramatic increase in the cost of lots is that newly constructed “starter houses” have almost vanished from the market. In past decades many subdivisions were developed in Conway that provided housing for families with a variety of incomes. This was possible because there was plenty of undeveloped land in sizable tracts within close proximity to existing utilities. This land was developed for reasonable amounts with the result that starter homes were available. Undeveloped parcels of land in Conway that are zoned for residential use run $25 to $50 thousand per acre. After using approximately 20% to 25% of the land for roads and right-ofways, a parcel could yield 2 to 4
lots per acre, which results in a figure of approximately $7,000 to $25,000 per lot. However, it is not the cost of the land that drives up lot prices. It is the cost of supplying the lots with streets and utilities. The city of Conway and the Conway Corporation have very stringent specifications and requirements for roads and utilities, which developers tell me are the most stringent in Arkansas. This may be true, but any development in the city limits of Conway is first class. Streets have curbs and gutters and surface water drains away. Sidewalks are required and streets are built to a standard that will last. Material specifications for water and sewage lines call for the highest quality. Often a major development cost is for offsite work, such as bringing sewer and water to the subdivision from some distance or accommodating for surface water drainage. Sometimes a developer may be required to size a water or sewer line to include future developments in the area. The cost of running sewer lines is approximately one million dollars a mile, and that is just to the property. After bringing utilities to the edge of a subdivision, they must be disseminated throughout. Engineering fees, roads, and utilities can amount to $20,000 to $50,000 per lot. One developer said that the stars have to be aligned just right to get development costs down to $20,000 per lot and in that case the utilities would have to already extend to the site. As Conway expands there is very little land left where utilities are already at the site. The only exception to this scenario is to find a sizable lot in an older section of town that can be subdivided into several lots. Such a development requires no new streets and no utilities other than hook up costs. The or-
ganization, Habitat for Humanity has used this tactic to build starter houses for low-income participants in that organization. The significant increase in residential lot prices is not a problem isolated to Conway. An article in USA Today reported that in the 27 leading market areas, finished lots ready for building were up 40% from a year ago. In locations such as Atlanta, Phoenix, and Las Vegas, lot prices were up 65 to 75 percent. Lot prices have risen fast because of limited supply, especially in popular neighborhoods, and the increasing demand for new homes. This dramatic increase in lot prices has changed the way developers and builders do business. In the past, people often bought a lot and then hired a contractor to build a house. Now, developers have to turn the lots into cash quickly to recover their large investment. They can’t afford to wait for a number of individuals to buy single lots from them. Today, a developer may sell a builder several lots at a reduced price to recover some of their investment. This stimulates construction in the subdivision. Many developers are also in construction, building houses as a turnkey product and rolling the development costs of the land into the sale of houses. As for the future I predict that as Conway continues to grow, single-family homes on sizable lots will yield to patio homes and multi-family units such as apartments, condominiums or town houses. Most of the singlefamily homes will be higher-end custom homes. I thank my friend Chris Spatz for editing and helping me with this article.
You can obtain more information on the economy of Conway and Faulkner County by going to the Pulse of Conway website (www.pulseofconway.com).