NORTH METRO
JUNE 2018
BUSINESS JOURNAL
Trinity Development provides local, personalized service to residential, commercial, office tenants Story on Page 6
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More Than 50 Reasons to Celebrate. This year, CareChex® named Conway Regional: #1 Hospital in the Central Arkansas Market for Medical Excellence in Overall Hospital Care (2018)* #1 Hospital in the State for Patient Safety in Orthopedic Care (2018)* #1 Hospital in the State for Medical Excellence in Women’s Health (2018)* Plus, 49 other prestigious awards* In addition to our full and dedicated team, we would like to thank you, our patients, for continuing to trust Conway Regional for your health care needs. *CareChex® — an information service of Quantros, Inc.
One Team. One Promise.
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Conway Corporation CEO Bret Carroll to headline CEO Luncheon Conway Corporation’s top executive Bret Carroll will be the featured guest at the Conway Area Chamber of Commerce’s second CEO Luncheon of 2018. Presented by Nabholz Construction Corporation, the luncheon will take place Tuesday, June 26, from 11:30 a.m. until 1 p.m. in the Mabee Student Services Complex dining hall on the campus of host sponsor Central Baptist College. Meridian Investment Advisors is the speaker sponsor. Carroll was named Conway Corporation’s CEO in 2017, making him only the sixth person to lead the organization since it was founded in 1929. His 20-year career at Conway Corp began as the company’s chief
financial officer. Carroll holds a bachelor’s degree in Accounting and a master’s degree in Finance from the University of Central Arkansas. He is recognized by the American Public Power Association as a Certified Public Power Manager and serves on the board of directors for the Mid-America Cable and Telecommunication Association and as chairman of the Arkansas Municipal Power Association Accounting, Finance and Customer Service group. Space is limited, so advance registration is required. To make a reservation, email director of events Therese Williams at therese@ conwayarkansas.org.
AEDC Rural Services Division Awards North Metro Nearly $40,000 in Grants
The Arkansas Economic Development Commission Division of Rural Services awarded grants to several North Metro communities at the Rural Development Conference last month. Fairfield Bay, Greers Ferry, Perryville, and Conway County will receive $6,355.72, $15,000, $15,000, and $3,442.50, respectively. Conway County was awarded a County Fair Building grant, while the other communities each received a Rural Community grant. A total of $39,798.22 in 50 percent matching grants were awarded. The County Fair Building Grant Program,
established to help county fairs remain viable, will allow the Conway County Fair Association to upgrade the Livestock Barn swine area from dirt to concrete. Rural Services’ Rural Community Grant Program funds projects such as baseball/softball fields, community parks, walking trails, community centers, fire stations, fire trucks, and other fire protection-related equipment. Fairfield Bay will utilize their grant to purchase heating and air conditioning units for the City center’s kitchen facilities. Greers Ferry will replace an old pumper truck, and
the Perryville Fire Department will outfit the new fire station’s training room with their grant funds. These grants will help each community to maximize their local dollars and complete projects that may not be feasible otherwise. Communities planning to apply for Rural Services grants in the future should work with the appropriate Planning and Development District or a private professional to ensure the application is compliant with guidelines and is completed properly.
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Six North Metro Census Tracts Designated Opportunity Zones
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The Tax Cuts and Jobs Act of 2017 created • Fewer than five years: Deferral of existing on the Opportunity Fund investment Opportunity Zones to stimulate investment capital gains until the Opportunity Fund The next milestone in the Opportunity in low-income census tracts. Opportunity investment is sold or exchanged Zone process is the release of the Zones are eligible census tracts nominated • Five to seven years: Fewer than 5 years’ Opportunity Fund establishment guidelines. by the U.S. state and Once the necessary territory Chief Executive guidelines are published, ARKANSAS OPPORTUNITY ZONE NOMINATIONS and approved by the U.S. organizations will be able Treasury Department. to create an Opportunity Clay Fulton Randolph Boone Benton Baxter Governors could nominate Fund and begin investing. Carroll Marion Greene Sharp up to 25 percent of the state’s An Opportunity Fund is Izard Madison eligible tracts as Opportunity the investment vehicle Lawrence Washington Newton Craighead Searcy Stone Zones. organized to invest in 49 § ¦ ¨ Independence Arkansas has 337 qualified Opportunity Zone assets. Van Buren 555 Crawford Cleburne Poinsett § ¦ ¨ Johnson census tracts, so 85 tracts Opportunity Funds 55 Jackson § ¦ ¨ Pope were eligible for nomination can invest in operating Franklin 40 Conway White Cross Crittenden § ¦ ¨ for the Opportunity Zone businesses, equipment, and Logan Sebastian Woodruff Faulkner St. Francis Designation. In April, real property, but 90 percent Yell Perry Governor Hutchinson of the fund must be invested 40 Prairie § ¦ ¨ Scott Pulaski nominated Arkansas’s in Opportunity Zones. Lee Lonoke Saline census tracts based on Opportunity Zones have Monroe Garland 30 Montgomery § ¦ ¨ the area’s potential to the potential to effectively Polk Phillips attract investment and stimulate growth in low530 Jefferson § ¦ ¨ Hot Spring Arkansas Grant the likelihood of economic income areas because there Pike Howard Clark success. Six of the 85 are significant unrealized Sevier Lincoln Cleveland Dallas nominated zones were in the capital gains available for Desha Little River North Metro, with Conway investment, investments Ouachita Legend Nevada (3), Heber Springs (1), are uncapped, and the Census Tract Calhoun Nominated for Morrilton (1), and Clinton (1) policy enables funds to be Drew Miller "Opportunity Bradley each receiving nominations. responsive to the various 49 Zone" (Total 85) § ¦ ¨ Ashley Lafayette Chicot Investing in designated needs of communities. Union 0 25 50 Miles Columbia Opportunity Zones, through U.S. households held an Mapped by Arkansas Economic Development Commission 4/20/2018 a qualified Opportunity estimated $3.8 trillion of Fund, offers three tax unrealized capital gains in incentives. Potential tax benefits for benefit and 10 percent of tax on the existing stocks and mutual funds, and corporations reinvesting capital gains in an Opportunity capital gain is canceled had another $2.3 trillion at the end of 2017. Fund include temporary deferral, a step• Seven to 10 years: Deferral of existing Communities who successfully capitalize up in basis, and permanent exclusion capital gains until December 31, 2026, or the on this new program will revitalize lowerfrom taxable income of capital gains. date that the Opportunity Fund investment income areas of the community, provide Opportunity zones are designed for longis sold or exchanged and 15 percent of tax on more economic opportunities for their term investments, so the tax incentives existing capital gain is canceled residents, and increase the community’s are structured according to the following • Greater than 10 years: Seven- to 10-year quality of life. holding periods: benefit and investors pay no capital gains tax
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“We’ve Got Conway Covered” Trinity Development provides local, personalized service to residential, commercial, office tenants If you live, work, or do business in Conway, there’s a good chance you’ve visited a property owned or managed by Trinity Development Company. The land development and real estate firm has shaped the landscape of the area over the past 40 years, owning and managing more than 300,000 square feet of office and commercial space in Faulkner County and Morrilton as well as over 500 apartment units in Conway. A Family Business Robert L. Ott founded Trinity Development in 1977. His son-in-law, Jim Rankin Jr., joined the company in 1995. He is a practicing attorney, so Rankin provided legal expertise to Ott and eventually became president of the company in 1998 after Ott’s death. Rankin not only married into the property development business – he was born into it. “My family grew up building houses and doing property development for as long as I can remember, so after I married Joanna, I at least had somewhat of a background in it.” He helped his father and grandfather with maintenance of the properties they owned in their hometown of Morrilton. “My first job every morning when I was 15 or 16 years old was picking up cigarette butts in the parking lots.” Rankin’s son, Adam Harrison, got his start in property management in a similar way. “My dad would give us a trash bag and a set of gloves and drop us off at one of the shopping centers to pick up cigarette butts and other trash for $20. I also helped his father remodel a house that they later moved
into, which is where I learned to mow, paint, and string a Weed Eater. Through high school, I started to mow our properties and manage the maintenance and lawn care of all of them. After college, I began to work for my dad and am learning what I can from him.” Harrison currently oversees Trinity Development’s billboards, rental houses, and mini storage units and manages the development of current projects. He also builds and buys rental homes through his own company, AKH LLC.
the management of our properties to other companies. Everything we own is in Conway or Greenbrier, and we also have one building in Morrilton. Our office and maintenance staff are all local people.” Trinity Development has 12 full-time employees split evenly between its maintenance staff and its offices at 1307 Main Street in Conway. During the summer, the company hires additional part-time help to assist with mowing. Harrison added that because Trinity Development is based in Conway and limits the properties it owns to the city and surrounding area, the staff is able to provide a personal touch to tenants. “Because we only manage properties we own, and we only own property in the area where we live and work, we are able to build personal relationships with the people we do business with,” Harrison said. “We see each other when we’re out and about, and we patronize the businesses we lease to – Taziki’s, Tacos 4 Life, Kum & Go, DQ, KFC, and McDonald’s to name a few. “Someone from our company is driving by each of our properties every day, ensuring our residential properties are safe and secure and our commercial and office properties are well-maintained. For this reason, we have several commercial and residential tenants who have been with us for over 30 years.”
Local, Personalized Service As locally owned, family business, Trinity Development prides itself on personal service. “Every property we own, we also manage,” Rankin said. “We don’t manage properties for other companies, and we don’t turn over
New Projects and Future Plans Trinity Development’s newest project is The Reserve at Tucker Creek. Located at 2820 College Avenue, the 72-unit, multifamily residential property provides “luxury, trailside living” along the Tucker Creek walking and biking trail.
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The property will open this month, and Trinity Development began taking leasing applications in late May. “The Reserve at Tucker Creek will be fully gated and secure and will give residents direct access to the trail and also put them within a short walk of Kroger, Walgreens, and many of Conway’s best fast-casual restaurants,” Rankin said. “It will also offer secure bike parking, covered parking, and the
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opportunity to rent a large garage.” As far as future plans, Rankin says Trinity Development is always looking for opportunities to develop land and help business owners achieve the American dream. “Conway has a lot going on; there are going to be several vacant properties available that will attract business owners of any size who want to set up shop here. There are
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also several two- and three-acre tracts that would be ideal for multifamily housing or small office space.” Those looking to lease an apartment, office space, executive suite, retail space, or industrial real estate can call Trinity Development at 501-336-0050 or email info@trinitydevelopmentinc.com.
Trinity Development team members pose outside of the company’s newest development, The Reserve at Tucker Creek (from left): Harleigh Lagasse, Ben Gipson, Courtnie Pledger, Lindsay Stobaugh, Jim Rankin, Adam Harrison and Talon Houston.
North Metro Economy at a Glance Population US ..........................325,719,178 Arkansas .....................3,004,279 Conway ...........................65,782 Cleburne County...............25,048 Conway County................20,916 Faulkner County.............123,654 Perry County....................10,348 Van Buren County.............16,506 Unemployment Rate March-2018 Seasonally Adjusted US ..................................... 4.1% Arkansas ............................ 3.8% Not Seasonally Adjusted US ..................................... 4.1% Arkansas............................ 3.9% Conway.............................. 3.3% Cleburne County ................ 4.8% Conway County ................. 4.6% Faulkner County ................ 3.4% Perry County ...................... 4.5% Van Buren County .............. 5.4% Sales Tax Collections May Conway 2018.....................$2,159,502.35 2017.....................$2,158,197.52 Percent Change................ 0.06% Tax Rate ........................... 1.75% Cleburne County 2018........................$534,985.60 2017........................$471,728.37 Percent Change.............. 13.41% Tax Rate ......................... 1.625%
Conway County 2018........................$500,396.10 2017........................$431,995.79 Percent Change.............. 15.83% Tax Rate ........................... 1.75% Faulkner County 2018........................$802,728.30 2017........................$793,062.91 Percent Change................ 1.22% Tax Rate ........................... 0.50% Perry County 2018........................$141,299.93 2017........................$123,876.94 Percent Change.............. 14.06% Tax Rate ........................... 2.50% Van Buren County 2018........................$344,936.00 2017........................$361,073.91 Percent Change...............-4.47% Tax Rate ........................... 2.00% Restaurant Sales* Year to Date (April) Conway 2018........................$64,765,417 2017........................$65,020,761 Percent Change...............-0.39% Tax Rate ........................... 1.75% *Includes mixed drink sales Hotel Sales Year to Date (April) Conway 2018..........................$5,206,953 2017..........................$5,257,016 Percent Change...............-0.95%
Bank Deposits June-30 Cleburne County 2017........................$524,244.00 2016........................$513,251.00 Percent Change ............... 2.14% Conway County 2017........................$382,665.00 2016........................$387,785.00 Percent Change ..............-1.32% Faulkner County 2017.....................$2,052,122.00 2016.....................$1,855,340.00 Percent Change ............. 10.61% Perry County 2017..........................$71,596.00 2016..........................$72,391.00 Percent Change ..............-1.10% Van Buren County 2017........................$277,646.00 2016........................$285,875.00 Percent Change ..............-2.88% Commercial Building Permits Year to Date (April) Conway 2018..........................................4 2017........................................11 Percent Change.............-63.64%
Residential Building Permits Year to Date (April) Conway 2018........................................46 2017........................................45 Percent Change................ 2.22%
Values of Residential Units Sold Year to Date (April) Cleburne County 2018........................$21,748,428 2017........................$18,473,180 Percent Change ............. 17.73%
Average Price of Residential Units Sold Year to Date (April) Cleburne County 2018.............................$185,884 2017.............................$167,938 Percent Change ............. 10.69%
Residential Units Sold (New and Existing) Cleburne County 2018......................................117 2017......................................110 Percent Change ............... 6.36%
Conway County 2018..........................$4,371,081 2017..........................$3,943,016 Percent Change ............. 10.86%
Conway County 2018.............................$112,079 2017...............................$89,614 Percent Change ............. 25.07%
Faulkner County 2018........................$79,250,640 2017........................$89,891,488 Percent Change ............-11.84%
Faulkner County 2018.............................$172,284 2017.............................$167,708 Percent Change ............... 2.73%
Perry County 2018..........................$3,626,900 2017..........................$1,026,432 Percent Change ........... 253.35%
Perry County 2018.............................$145,076 2017...............................$93,312 Percent Change ............. 55.47%
Van Buren County 2018..........................$7,493,908 2017..........................$6,581,575 Percent Change ............. 13.86%
Van Buren County 2018.............................$105,548 2017.............................$101,255 Percent Change ............... 4.24%
Conway County 2018........................................39 2017........................................44 Percent Change ............-11.36% Faulkner County 2018......................................460 2017......................................536 Percent Change ..............-0.14% Perry County 2018........................................25 2017........................................11 Percent Change ........... 127.27% Van Buren County 2018........................................71 2017........................................65 Percent Change ............... 9.23%
For more useful information go to: pulseofconway.com
Sources: Arkansas Department of Workforce Services, Arkansas Department of Finance & Administration, Federal Deposit Insurance Corporation, and Arkansas Realtors Association.
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Area experts provide an inside look into the North Metro economy at Outlook Conway Organized by the Conway Area Chamber of Commerce and presented by Smith Ford Inc. and Thomas & Thomas CPAs, the 2018 Outlook Conway event took a deep dive into the regional North Metro economy. Conway Regional Health System and Nabholz Corporation served as economic sponsors, and Arkansas Business was the media sponsor. Throughout the day, panelists in the areas Minority Business Panel of minority business, manufacturing, education, and scalable startups spoke to the packed house at Centennial Valley Events Center about their specific companies or enterprises. Outlook Conway Panels Moderated by Mitch Bettis, president of Arkansas Business Publishing Group, and sponsored by Northwestern Mutual, the minority business panel at Outlook Conway featured Susan Douglas-Munson, owner of Douglas Companies Inc.; Lee Harris, owner of Harris Plastering and Construction; and Drew Gainor, managing director at Northwestern Mutual. The
panelists said that advances in technology and changing demographics among clientele and employees has changed the way they do business. Gainor said adapting to change is not a bad thing. “The C-suite has to commit to diversity and inclusion. Diversity is easy; it’s inclusiveness that’s more difficult. As employers and business owners, we have to be committed to finding value-based commonality among different groups, regardless of age, gender or ethnicity.” Bettis also moderated the Beyond Startups panel at Outlook Conway, which was sponsored by Conway Corporation. Chase
Blackwell, owner and president of TriTechne; Amy Denton, owner of Pediatrics Plus; Rhea Lana Riner, president and CEO of Rhea Lana Inc.; and Austin Samuelson, owner of Tacos 4 Life Grill were the entrepreneurs who made up the panel. Blackwell’s company, TriTechne, was founded in 2015 and has grown from 13 employees initially to 80. The average age of employees at the company is 29, allowing for creative, out-of-the-box thinking Blackwell said is beneficial in the telecom services industry. “In a nutshell, TriTechne helps carriers of the Internet provide services to customers across the country. We’re in the solutions business, so working with young and creative recent graduates helps us find these solutions for our customers.” The Outlook Conway education panel was moderated by Lori Ross, chief development officer at Conway Regional Health System, and featured these panelists: Kelley Bass, chief executive officer of the Museum of Discovery; Dr. Charlotte Green, founder and
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executive director of Arkansas Preschool Plus and assistant professor at the University of Central Arkansas; and Paul Leopoulos, executive director of Thea Foundation. While the panelists represented distinct areas in education, each expert agreed that parents should engage with their children to promote learning, whether that’s through play, reading, the arts, or simply allowing them to explore. These activities help cultivate work ethic, build confidence and promote self-esteem. Moderated by Charles Nabholz of Nabholz Corporation and sponsored by Rogers Group Inc. and Snap-on, the Outlook Conway manufacturing panel
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featured Chris Boudrie, plant manager at Kimberly-Clark Corporation; Will Cone, vice president and general manager at Green Bay Packaging – Arkansas Kraft Division; and Steve Presley, vice president and general manager of Virco Manufacturing Corporation. The manufacturing panelists emphasized the importance of talent recruitment, workforce development and investment in training programs for skilled trades. They said as employees approach retirement, the companies will lose a wealth of knowledge and valuable skills these employees bring. “Access to talent in skilled trades is vital to the success of our company,” Cone said.
Beyond Startups Panel
Education Panel
Manufacturing Panel
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