Faulkner County Business Journal Mar 2012 by Log Cabin Democrat

n EDITORIAL

ANNUAL MEETING

A prediction

Approximately 900 business and community leaders braved the rain to attend the Conway Area Chamber of Commerce’s 2012 Annual Meeting at the University of Central Arkansas’ HPER Center. The special guest was Mr. Madison Murphy, the current chairman of the Arkansas Highway and Transportation Department. Another focus of the night was recognizing outstanding businesses, organizations and individuals that contribute to Faulkner County’s economic success. Award winners in a number of business and civic categories were announced. Annual meeting attendees were also the first to hear about some of the exciting things planned for 2012, including the Explore Spain trip in November and Toad Suck Daze entertainment.

TOP 5 RESIDENTIAL home sales

Old Morrilton Hwy

3715 Whiskey Chute

Meadowlake Rd

Donaghey Ave

Gleason

Cadron Valley Country Club 319

Tyl e

r St

Centennial Valley Golf Club

Salem Rd

Lake Carol-dan

BRAD LACY President and CEO Conway Area Chamber of Commerce

Donaghey Ave

Gatlin Park

n Pri

4830 Dover Lane

C Laurel Park

145 Merlot 210 Chapel Creek 60

Highway 60 4810 Trinity Crossing W

University Of Central Arkansas

286

Dave Ward Dr 286

PRICE

ADDRESS

CITY

BED/BATH

SUBDIVISION

SQ. FT.

$/SQ. FT.

YEAR BUILT

$286,000

3715 Whiskey Chute

Weatherstone

2,854

$108.58

2006

$284,000

4810 Trinity Crossing

Chapel Creek

2,460

$117.89

2012

$252,500

4830 Dover Lane

Nottingham

2,378

$109.29

2004

$242,900

210 Chapel Creek

Chapel Creek

2,240

$109.33

2011

$225,000

145 Merlot

Chapel Creek

2,012

$116.75

2011 286

4 | FAULKNER COUNTY BUSINESS JOURNAL

Caldwell St

Conway Country Club

S Salem Rd

Sometimes it’s scary to put yourself out on a limb and make predictions. But given some recent trends, a little statistical information and a lot of speculation we feel good about this one. 2012 will be a banner year for Conway’s economy. First, the trends: Here at the Chamber, our phones are ringing. Existing businesses are talking expansion. New businesses are considering locating. Companies are hiring. Much of it is on a small scale. But that’s a good thing. The prospect of ten businesses hiring ten employees is more encouraging than the hope of one business hiring a hundred. Consider us very surprised if we don’t see measurable job growth in Faulkner County this year. Second, the statistics: It’s early in the year, but we’ve already witnessed some important numbers come in. Last month, the city received a final accounting of December’s sales tax collections. They were up a whopping 8.5% over the previous December. To put that in context, it was the highest single month of sales in Conway’s history. Hotel and restaurant revenues are continuing to grow at an even faster rate. It could be the overall economy, some savvy local marketing, a number of big projects going on or just luck. But we hope and think that it will continue through the year. Finally, some speculation: We think it will be difficult for our local economy to recede when there are so many major projects going on. More than $100 million in I40 expansion, another $100 million in construction at our schools and hospital, a $90 million Conway Corp sewer project and another $30 million at the new airport. That’s some pretty serious money flying around in one county. Also im60 portant is that all of the projects listed above are investments in our community. They make us more attractive to the private sector and they make 286 Conway a better place to live. To summarize, we are obviously bullish on Conway and Faulkner County. That’s always been the case. But 2012 will stand out as an important and fruitful year in our city’s history. It should be fun to watch.

Conway Economy at a Glance Unemployment Rate December 2011 US ....................................8.3% Arkansas............................7.7% Faulkner County .............. 7.1% Conway..............................6.1% Sales Tax Collections Conway- Annual* 2011......................$22,366,464 2010......................$21,868,102 Percent Change 2.3% *Tax Rate 1.75% Faulkner -Annual* 2011........................$8,279,301 2010........................$7,834,226 Percent Change 5.7% *Tax Rate 0.5% Restaurant Sales* January Sales 2011......................$12,008,869 2010......................$11,204,870 Percent Change 7.2% Annual Sales 2011....................$151,462,797 2010....................$139,864,203 Percent Change 8.3% *Includes mixed drink sales Hotel Sales January Sales 2011........................$1,332,425 2010........................$1,125,722 Percent Change 18.4% Annual Sales 2011......................$18,662,136 2010 .................... $17,590,242 Percent Change 6.1% Conway Building Permits Single Family Homes January-February 2012......................... 21 permits 2011......................... 17 permits Percent Change 23.5% 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 February 2012........................$1,776,507 2011........................$1,414,816 Percent Change 23.6% Annual 2011......................$16,768,687 Total State January 2012......................$35,720,403 2011......................$39,663,372 Percent Change (9.9%) Annual 2011 ...................$484,879,701 2010....................$459,916,256 Percent Change 5.4% Natural Gas Severance Tax Distribution March 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 ......................... $4.16 2009 ......................... $3.71 2008.......................... $8.07 2007.......................... $6.37 2006 ......................... $6.40 2005 ......................... $7.33 2004 ......................... $5.46 2003 ......................... $4.88 2002 ......................... $2.95 *MCF=1000 cubic feet Number of Active Wells* Faulkner County..................301 Total in Field . ..................3,901 *As of January 12, 2011 Estimated Life Time Value of Production* Total Field.......$11,382,327,198 *As of November 31, 2011

Information provided by pulseofconway.com

Retail Sales Reach NEW High BY ROGER LEWIS

Faulkner County’s annual retail sales hit an all time high in 2011 at $1.7 billion. The best month also an all time high - was December with $170 million. These figures are estimated from sales tax collections and may understate actual sales because the sales tax on automobiles is applied to only the first $2500 of a sale. Conway sales accounted for 77% of the Faulkner County retail market at $1.3 billion for the year. December sales in Conway were $135 million is 79%of the total, a slightly higher market share. Conway has not been substantially affected by the national recession. A relatively low unemployment rate of 6.1% and average annual earnings of $37,000 for workers bolster sales. In 2009 sales declined somewhat but began to recover in 2010 and then made substantial gains in 2011. I have lived in Conway for 39 years and have witnessed its growth from a small community of 16,000 with limited shopping and dining choices into a suburban area with essentially one of everything. Going to Little Rock on Saturday evening in the 70’s and 80’s was a ritual. Now shopping, dining, entertainment and hospitality amenities make Conway the trade center for north central Arkansas. Many Conway businesses advertise in Maumelle and consider it part of Conway’s trade area. A vibrant downtown area, the Conway Commons and the Conway Towne Center offer shoppers a wide variety of choices. The new Cinemark Town Theater draws from a wide area making Conway rather than Little Rock a destination. These trips often include shopping and dinner. Area residents find little need to go to Little Rock for many amenities. In Conway 23 hotels, one bed and breakfast, and 196 places that sell prepared food make Conway an attractive tourist destination.

Faulkner County Retail City......................................... Annual Sales............................. % of Total Conway........................................... $1,303,645,330.............................................. 77.2 Greenbrier...................................... $83,215,017.......................................................4.9 Mayflower...................................... $40,062,489.......................................................2.4 Vilonia.............................................. $43,784,642.......................................................2.6 Guy................................................... $3,319,386..........................................................0.2 Twin Groves................................... $832,524.............................................................0.0 Nontax areas................................. $169,972,202.................................................. 12.7

Total Faulkner County............. $1,688,977,404.....................................100.0

“Tourist” in the broadest sense of the term includes overnight stays while traveling, doing business in the area or visiting. According to the Arkansas Department of Tourism and Travel, more than 357,000 visitor trips were made to Faulkner County in 2011. A visitor trip is defined as one person traveling 100 miles or more one way and/or spending one night away from the point of origin. The estimate is that these visitors spent more than $81 million in 2011. Conway’s and Faulkner County’s population have more than doubled in the last twenty years. It will continue to grow and most likely add many more shopping venues. Conway’s demographics are very enticing to developers. The table illustrates retail sales in six Faulkner County municipalities and nontax areas. Note that the next largest retail area outside of Conway, 12.7% of sales, is in the nontax area. This area includes four small incorporated communities that do not have a local sales tax, Enola, Guy, Holland, and Wooster and unincorporated areas. The unincorporated areas are areas such as between Conway and Vilonia and between Conway and Greenbrier. Also note that annual

retail sales in Conway total more than $1 billion. Sales tax collection reports are always two months in the arrears. Merchants collect sales taxes, including the local sales tax, during one month and forward them to the state the following month. The State Department of Finance and Administration take another month to assemble data, distribute collections back to the communities and report the data. Thus the complete data for 2011 is not available until March 2012. Several adjustments must be made to estimate actual sales from sales tax collection data. Merchants keep two percent of the taxes they collect as payment for collecting the tax and the Department of Finance and Administration keep approximately 3% of the tax for administration. You can obtain more information on Sales Tax Collections by going to the Pulse of Conway website (www.pulseofconway.com). I thank my friend Chris Spatz for editing and helping me with this article. More information on building permits and real estate sales can be found at Pulse of Conway website. pulseofconway.com.

FAULKNER COUNTY BUSINESS JOURNAL | 3

First Security Bank, Crews & Associates: Investing in a Growing Faulkner County What do the new Conway High School-West classroom building, UCA’s Bear Hall, and CBC’s new academic building have in common? Think teal. First Security Bancorp is helping finance the construction of each of these major projects. The privately held financial services holding company is based in Searcy, Ark., and consists of 69 communitybanking centers across the state. It also owns several affiliate organizations, including Little Rock-based investment banking firm Crews & Associates. “First Security has a unique position in Conway because of our relationship with Crews & Associates,” said John Adams, president and CEO of First Security Bank in Conway. “We have the ability to provide banking and public financing services to an entire community, giving us one of the most diverse product offerings of any financial services holding company based in Arkansas.” Crews & Associates was founded in 1979 and has been a wholly owned, nonbank affiliate of First Security Bancorp since 2000. This past year, Thomson Reuters ranked Crews & Associates among the leaders in several categories related to municipal bond transactions in the United States. Tony Henderson, account executive and local investment banker for Crews & Associates in Conway, said that First Security’s strong community banking presence has helped grow its public finance side. “As a full-service investment banking firm, Crews & Associates is able to serve institutional customers as well as individuals,” Henderson said. “Traditionally, businesses and consumers would have to turn to large, national firms for

Tony Henderson is an account executive and local investment banker for Crews & Associates in Conway. His office is located in First Security’s historic downtown banking center.

their investment needs. With our presence, we are seeing clients who bank with First Security take advantage of a local firm that is able to provide the same financial services that larger firms do.” Between First Security Bank and Crews & Associates, First Security Bancorp is financing several major construction projects for Conway’s educational institutions. John Adams said that this goes back to First Security’s philosophy of investing in Arkansas. “While some banks are looking to expand outside of the state and to move their assets elsewhere, we opt to keep our focus here to fund local projects,” Adams said. “Within the state, all 69 locations and all seven markets are uniquely focused on the communities they serve.” Crews & Associates issued Conway Public Schools a combined $44 million bond for the construction of the new Conway High SchoolWest classroom building and Carolyn Lewis Elementary. Public reports indicate that First Security Bank provided a total of approximately $9 million to Central Baptist Col-

4 | FAULKNER COUNTY BUSINESS JOURNAL

Lenders for the First Security Conway market are (back row, from left) J.B. Mobley, vice president; Mark Lollar, senior vice president; John Adams, president and CEO; Jon Ross Henderson, vice president; Mike Baldwin, executive vice president; Sandra Hayes, vice president; George Baker, senior vice president; and Shawn Rea, vice president.

lege for financing, including its new academic building. At the University of Central Arkansas, Crews & Associates is underwriting the $10 million bond for a five-story residence hall and skyboxes overlooking First Security Field at Estes Stadium. In addition, First Security Bank issued a $5.5 million loan for a new weight room facility at UCA. “Banks do well when their communities do well,” Adams said. “There are many factors that contribute to a growing economy, but the financing piece needs to be there, too. If that’s not in place, it can stifle progress.” First Security’s Conway market has approximately 26,000 personal and business customers and more than $620 million in assets. At the end of 2011, First Security Bancorp recorded more than $4 billion in assets and $520 million in total capital. Adams said

that because of its locations throughout Arkansas, First Security Bancorp has the strength of a statewide presence and the capital to help it meet most financial needs facing Arkansas businesses, institutions and individuals. “We provide business loans and commercial lending and are absolutely eager to help people finance small businesses,” Adams said. “For consumers, we offer mortgage finance and are proud to have been the largest mortgage recorder in Faulkner County for more than 10 years. Our bank has a long history of home finance.” Although First Security’s financing operations happen largely behind the scenes, the bank’s signature teal can be seen at community events throughout Conway and across the state. Perhaps the most well-known examples of the bank’s community involvement in Faulkner County are the

First Security Conway Kids’ Triathlon and the traveling Teal Grill. The Conway Kids’ Triathlon takes place each August and is one of the nation’s premier youth triathlons. Proceeds from the event benefit Children’s Advocacy Alliance. The Teal Grill can be spotted cooking hamburgers and hot dogs at community events across the state. “Our goal is to be a community-focused bank, whether it’s financing major projects that benefit the people who live and work here or showing our support at special events. “Our investment in the community does not stop with buildings and money; it’s not only the things that look good on the books that make us proud,” Adams said. “It is helping our customers and the communities we serve be all they can be with the help of what we can provide.”

Business After Hours at the pointe The Pointe at Conway will host the Conway Area Chamber of Commerce’s quarterly Business After Hours networking event on Monday, April 9, from 5-6:30 p.m. The apartment community is located at 2010 RichSmith Lane in Conway. In addition to its one-, two- and three-bedroom apartments, The Pointe offers furnished corporate suites for business travelers or those seeking temporary housing. Established as a cost-effective alternative to a lengthy hotel stay, the corporate suites are available to guests with extended accommodation requirements for 30 days or longer. Business After Hours allows members to strengthen professional relationships and develop new opportunities to work with fellow Chamber members. The event is free to Chamber members and their employees. Complimentary hors d’oeuvres and drinks will be provided. For more information about Business After Hours, call the Chamber 501-3277788.

What’s that gonna be?

The Row Houses at Hendrix Village The Row Houses will demonstrate a new meaning of upscale apartment living. In The Village, with 18 total apartments of one and two bedrooms. The apartments include granite countertops, stainless steel appliances, and hardwood or stained concrete floors. The two bedrooms will exemplify a modern townhome style and the one bedrooms will follow an upscale modern floor plan. For leasing information email Alison@SalterProperties.com Who is building it? Salter Construction is the general contractor. Salter Properties will handle leasing. Where is that? On Harkrider in the Hendrix Village. When is it gonna open? The Row Houses are scheduled to be complete by Aug. 1.

Lunch & Learn to Explore Loan options for area Small Businesses

The Conway Area Chamber of Commerce will host a Small Business Lunch & Learn on Tuesday, March 20, from 11:30 a.m. until 1 p.m. Metropolitan National Bank and Arkansas Custom Capitol Corporation will explain the Small Business Association (SBA) 504 Loan program. SBA 504 Loans are benefi-

cial for small businesses that are looking to expand or for individuals who hope to start a new business. The SBA 504 Loan can permanently finance the purchase of machinery, furniture, fixtures and other project-related soft costs. It can also be used to finance the purchase of real estate or the construction or renovation of a building.

6 | FAULKNER COUNTY BUSINESS JOURNAL

SBA is the largest, nondisaster financial assistance program that allows for a 75 percent guarantee for trueamortizing loans between $15,000 and $5 million. Loans less than $150,000 receive an 85 percent guarantee. Scott Todd, vice president and marketing manager for Metropolitan National Bank in Conway, said that this program is an example of the

bank’s “Nearby & Neighborly” philosophy. “Metropolitan National Bank is committed to helping small business owners realize their dreams through innovative products and services like the SBA 504 Loan program,” Todd said. More information about the SBA 504 Loan program will be available at the Small Business Lunch & Learn. The

session is sponsored by Metropolitan National Bank and will take place at the Conway Chamber building located at 900 Oak Street. To register for the Small Business Lunch & Learn, visit the Upcoming Events section at ConwayArkCC.org. Seating is limited to the first 40 participants. The registration deadline is Monday, March 19, at noon.

Conway Area Chamber of Commerce Receives 4-Star Accreditation

The U.S. Chamber of Commerce awarded Conway Area Chamber of Commerce with 4-Star Accreditation for its sound policies, effective organizational procedures and positive impact on the community. Accreditation is one of the highest honors bestowed on chambers that support pro-growth and economic policies at the federal, state and local levels. In addition,

Accreditation is the only national program that recognizes chambers for their effective organizational procedures and community involvement. In order to receive Accreditation, a chamber must meet minimum standards in their operations and programs, including areas of governance, government affairs, technology, program development and communication. This extensive self-review took the Conway Area Chamber of Commerce twelve months to complete. “We are excited to receive

national recognition on behalf of our 1,250 investors. We are now one of 76 chambers in the United States to achieve 4-star status. It was important for us to go through this process. Very few chambers subject themselves to this level of scrutiny and objective review. We are a better organization for having gone through the process,” said Brad Lacy, president and CEO. The U.S. Chamber of Commerce rates local chambers as Accredited, 3-Stars, 4-Stars or 5-Stars. Of the nearly 7,000

chambers in the United States, only 221 are Accredited. These chambers represent the top 3 percent of all chambers in the nation. The Conway Area Chamber of Commerce is only the fourth chamber in Arkansas to achieve this designation. The other Accredited chambers are the Jonesboro Regional Chamber of Commerce (4-Stars), the Rogers-Lowell Area Chamber of Commerce (5-Stars) and the Searcy Chamber of Commerce (Accredited). The U.S. Chamber of Com-

merce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors and regions, as well as state and local chambers and industry associations. The mission of the Conway Area Chamber of Commerce is to lead the community toward sustainable economic growth, to advocate for a pro-business climate for its members, to build upon Conway’s educational foundations, and to establish and execute the community’s vision.

FIRST ORION/PRIVACY STAR TO SPEAK AT LUNCHEON Jeff Stalnaker, CEO and President of Conway-based technology company First Orion Corporation, will be the guest speaker at the Conway Area Chamber of Commerce’s upcoming CEO Luncheon. The event will take place Tuesday, March 27, from 11:30 a.m. until 1 p.m. at the Student Life and Technology Center on the campus of Hendrix College.

First Orion Corporation is a leading provider of call management, privacy and preference services to the telecommunications industry. The company allows consumers complete control of their wired, wireline or Voice-over Internet Protocol (VOIP) telephones. First Orion Corporation is the creator of PrivacyStar, a smartphone application for Android and BlackBerry. With more than 13 features, PrivacyStar enables consumers to block all unwanted calls and text messages. Users can also

Conway to serve as host site for Chick-Fil-A LEADERCAST On May 4th, Faulkner County residents will have a chance to hear from some of the most well known figures in sports, entertainment, journalism and business. The event is the Chick-Fil-A LEADERCAST and the Conway Chamber is hosting a broadcast of the one-day leadership development program. Conway Chamber of Commerce Vice President of Membership Services Lindsay Wygal says that the event is a unique opportunity to get insight into the leadership habits of some of the country’s highest achiev-

ing personalities. “I think any aspiring leader who attends will leave with new skills or ideas. The diversity of speakers, the setting and the materials all add up to a fun and beneficial day of personal development.” The local Chick-Fil-A LEADERCAST is sponsored by Conway Copies, First Service Bank, Rhea Lana’s, Fellowship Bible Church, Textbook Brokers and Ye Olde Daisy Shoppe. The all day event is $75 and includes breakfast, lunch and study materials. For more information and to register for the event, visit www.ConwayArkCC.org and click on LEADERCAST under upcoming events.

file with the Federal Trade Commission complaints related to telemarketing calls and debt collection calls. PrivacyStar users have blocked more than 120 million numbers and filed more than 150,000 complaints directly to the FTC. At the CEO Luncheon, Stalnaker will discuss starting a technology company in a challenging economic climate. He will also provide an overview of the mobile ecosystem and privacy concerns related to mobile devices. “Mobile is you – where you are, when

you want it, and what you want. Our goal is for our customers to not have to sacrifice privacy for convenience when it comes to their smartphones,” Stalnaker said. CEO Luncheons are open to all employees of Chamber member businesses. Individual tickets are $25 per person. Reserved tables of eight are available for $200. For reservations, call 501-327-7788 or email GetSmart@ ConwayArkansas.org. The reservation deadline is Wednesday, March 21.

CONWAY PARKS/REC 2012 BOOKED TOURNAMENTS

EVENT......................................................................... FACILITY...................................................... DATES March of 2012 Fatchmo Volleyball Tournament...........................................Conway Sports Center...................................... March 12 CASM Sports Baseball Tournament.....................................Conway Station Park........................................March 2-4 CASM Sports Baseball Tournament.....................................Conway Station Park..................................... March 9-11 CBC Invitational...........................................................................City of Colleges Park..................................... March 9-10 Alpha Phi Alpha Charity Basketball Tournament............Conway Sports Center...................................... March 12 CASM Sports Baseball Tournament.....................................Conway Station Park...................................March 23-25 April of 2012 CASM Sports Baseball Tournament.....................................Conway Station Park......................................April 13-15 CASM Sports Baseball Tournament.....................................Conway Station Park......................................April 27-29 May of 2012 CBC MCAC Conference Tournament...................................City of Colleges Park............................................May 3-5 CASM Sports Baseball Tournament.....................................Conway Station Park.......................................May 11-13 CASM Sports Baseball Tournament.....................................Conway Station Park.......................................May 18-20 June of 2012 CASM Sports Baseball Tournament.....................................Conway Station Park...........................................June 1-3 Homeschool Basketball Camp...............................................McGee Center........................................................June 4-6 CASM Sports Baseball Tournament.....................................Conway Station Park........................................ June 9-10 CASM Sports Baseball Tournament.....................................City of Colleges/Conway Station...............June 15-17 CASM Sports Baseball Tournament.....................................Conway Station Park......................................June 22-24 Midwest Sports Production....................................................City of Colleges Park......................................June 27-28 Conway Christian Baseball......................................................Conway Station Park......................................June 27-28 September of 2012 CASM Sports Baseball Tournament.....................................Conway Station Park.......................................... Sept. 1-3 FAULKNER COUNTY BUSINESS JOURNAL | 7