Talk Business & Politics November/December 2015 by Talk Business & Politics

November/December 2015

John Brummett Examines the Shifting Media Landscape The Breakfast Menu With Rex Nelson Chris Masingill Leads the Delta Regional Authority Daryl Bassett On Heading Up Workforce Change Heather Larkin: Charitable Giving & Your Values

Cuban Flair Gov. Hutchinson & a Delegation Take a Maiden Voyage

SUPPORT SENIORS’ GREATEST SUPPORT SYSTEM: FAMILY CAREGIVERS. More than 450,000 Arkansans care for older parents or loved ones, helping them to live independently and safely at home — where they want to be. But these caregivers often lack the resources and support they need to provide that care. That’s why Arkansas needs to support family caregivers and provide services for seniors at home and in their communities — which would save the state money in the long run.

Learn more about how AARP is fighting to support family caregivers and their loved ones.

Visit aarp.org/ar. Facebook.com/AARPArkansas @ARAARP aarp.org/AR

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Contents November/December 2015 5 Publisher’s Letter Commentary

7 Heather Larkin

Center Your Charitable Giving

9 Charles Stewart & Sericia Cole Black Achievers

59 AIPRO’s Andy Miller

Energy for the Long Haul

61 Randy Zook

The State of the State’s Economy Profiles

18 Delta Regional Authority’s Chris Masingill

22 Blue Mountain Woodworking: 26 30

Artisans Design a Living Mountain View Sights and Sounds of the Ozarks Marshals Museum Update: Gift Helps Fund Theater

Industry

40 Tourism

Richard Davies & Crew Depart

44 Economy 46

Beige Book Notes Growth at ‘Modest’ Pace Health Care The Stephen Group Report

54 Hometown: Pine Bluff The Turnaround Plan

68 69 70

Regional Northwest Arkansas Wal-Mart Lays Off 450 Springdale Medical Firm Opens New Frontier NanoMech Launches a Transport Division

Northeast Arkansas

71 Convention Center Controversy Brews 72 ASU Announces ‘Degree in 3’ Program

32 Cover Story: The Pros & Cons of Cuba

Central Arkansas

Fresh off a trade mission to Cuba, Gov. Asa Hutchinson and a state delegation

73 The Venture Center Turns One 74 Creative Corridor Revitalizing

assess the possibilities for improving Arkansas exports.

Downtown Little Rock

75 LRAFB: 60 Years of Service 50 Insights 76 Leadership

Sixth Sense: Effective Leadership

78 Executive Q&A

Daryl Bassett On Workforce Development

Features Breakfast Clubs Rex Nelson takes readers on a tour of some of the best places to have a power breakfast in Arkansas.

62 The New Media World John Brummett examines the 24/7 news cycle and technology that puts the power of news in your palm.

82 Back Talk COVER ILLUSTRATION BY SHAFALI ANAND

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

From the Publisher

A Happy Merger Talk Business & Politics is owned by Natural State Media and is published six times a year. For additional copies, to be included in our mailing list, or for information about advertising, contact Katherine Daniels at katherine@talkbusiness.net. November/December 2015 Publisher & CEO Roby Brock roby@talkbusiness.net Art Director Bryan Pistole, DesignMatters LLC bryan@designmattersllc.com Executive Editor Michael Tilley michael@talkbusiness.net Editor Bill Paddack bill@talkbusiness.net Contributing Writers Steve Brawner Jeanni Brosius Wesley Brown John Brummett Kerri Jackson Case Michael Hibblen Todd Jones Rex Nelson Casey Penn Johnathan Reeves Jamie Smith Kim Souza Michael Wilkey Photographers Stephanie Dunn dunnmsteph09@yahoo.com Tim Rand pix@trand.com Bob Ocken bob@ockenphotography.com Kat Wilson katographic@gmail.com Vice President Sales & Marketing Katherine Daniels katherine@talkbusiness.net Business Manager Daelene Brown daelene@talkbusiness.net Printer Democrat Printing & Litho Natural State Media 5111 Rogers Ave., Suite 600 Fort Smith, AR 72908 479-242-2800

I’ve been hinting for some time about new changes at Talk Business & Politics in addition to our constant effort to improve our products and provide our important audience with more content that is valuable to their lives. I’m proud to announce the merger of Talk Business & Politics and The City Wire, our longtime content partner on the web out of Fort Smith and Northwest Arkansas. This merger cements our collaboration in a way that will bring everything under one umbrella and with a singular focus to reach our core readers, listeners and viewers with a coordinated, statewide footprint. A lot of things will stay the same as a result of this merger and a lot of things will change. Let’s run down the agenda beginning with what stays the same. THE SAME • You can count on the same quality daily, weekly and monthly content that you always have from both organizations. We won’t change our writers or mission to provide you fast, accurate and in-depth news on the business and political arenas. • If you’re a City Wire reader, you’ll still see your same local news coverage – we’ll actually be producing more local news in Fort Smith and Northwest Arkansas where The City Wire already exists. We’ll replicate a lot of that coverage in Central and Northeast Arkansas. • Our TV and radio shows and the daily email newsletters that all of our audience has come to rely on will still be produced in the same manner. • I will continue to host our weekly radio, podcast and TV programs. WHAT’S DIFFERENT • As for change, executive editor Michael Tilley will lead our daily news coverage and outstanding team of writers, reporters and bloggers. With his focus on this function, I expect to see more great work from our talented team. • We will have a new website in short order at TalkBusiness.net. It will be different for daily readers of The City Wire and Talk Business & Politics. But combined, there will be more content, the ability to customize the site for your preferences (for instance, you can pick a local region or all news), and you’ll be able to see a quick rundown of our news at a glance with the forthcoming design change. • We will be creating a suite of new products that we believe will provide even more news, analysis and reporting for our hungry audience of business, political and community leaders. I’ll be hoping to hear feedback from each of you. It is always welcome and will only make us a stronger media organization as we provide you with more quality news to help you advance personally and professionally. Sincerely,

Roby Brock Publisher & CEO www.talkbusiness.net

Entergy Arkansas’ rates are lower than the state and national averages. And here’s our plan to keep them low.

At Entergy Arkansas, we work not only to ensure reliable power, but also to make sure that power remains affordable. That’s why Entergy Arkansas customers have rates below the average for Arkansas and the nation – and why we are committed to keeping costs down while creating value for customers now and for years to come.

1. Providing reliable power. Our plan includes strengthening the electric grid from transmission lines to substations to transformers – to prevent storm outages by planning and maintaining a more robust network.

2. Lowering costs. Keeping a balanced mix of energy resources is an important ingredient to providing customers with clean, reliable, and affordable electricity. Entergy Arkansas also joined the Midcontinent Independent System Operator (MISO) several months ago. And we’re already seeing monthly savings by having access to a large power market that allows us to further reduce costs.

3. Generating jobs. Entergy Arkansas is reaching out to major companies around the world to put Arkansas on the top of their lists for new facilities. Then we work with them to make sure we have the infrastructure they need to power their business – adding more customers to share costs and putting more Arkansans to work.

4. Investing in sustainable communities. The health of our local communities drives our quality of life as a state. Training, education and infrastructure are vital not only for economic development, but also for building a stable society for generations to come. We’re committed to helping our state grow, strengthening communities, supporting non-profits and improving education.

To learn more, visit EntergyArkansas.com.

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

Commentary

Smart Charitable Giving Starts With Your Values By Heather Larkin, J.D. Heather Larkin, J.D., is president and CEO of the Arkansas Community Foundation.

ou’ve probably got a lot of things filling your plate this holiday season. But what feeds your spirit? From a purely practical standpoint, December is an ideal time to give to the charities you support in order to claim a charitable deduction on your 2015 taxes. But your personal giving shouldn’t be merely one of a thousand other to-do’s on your year-end checklist; if you’re fortunate enough to have the resources to give, you’ve got a special opportunity to celebrate the causes that inspire you and bring joy to those around you. At Arkansas Community Foundation, we partner with thousands of Arkansans to help them achieve their charitable goals. Though their lives and backgrounds are different, these donors share one thing in common: the desire to use their resources as effectively as possible to do good in their communities.

The holiday season is the perfect time to teach your children and grandchildren about giving back.

WAYS TO BEGIN From my experience working with these donors, I’ve observed that effective charitable giving always begins with your personal values. Here are a few ways to get started: Talk to your family about the causes you care about. The holiday season is the perfect time to teach your children and grandchildren about giving back. When you gather together around the family table, make time to share the stories that have shaped your values. Consider setting aside a portion of your giving budget to donate to a few charities selected by the family as a whole. Together, you can begin to build a legacy of giving that will span generations. Find (and stick to) your focus. Your options for charitable giving are

limitless. It’s tempting to say yes to every good cause, especially when compelling appeals arrive in your mailbox (or inbox) every day. Yet, you can have a more sustained impact when you focus your time, interest and financial resources on a need that is most significant to you. Consider dividing your charitable giving budget into two pools: leave one part uncommitted so you can respond to small requests as they arise, but reserve the other portion for organizations serving your core passion. In this way you can commit a larger portion of your giving to the organizations that mean the most to you, while leaving the door open to other needs, as well. ASK THE RIGHT QUESTIONS Do your homework. Over the past few decades, donors have become increasingly savvy about vetting the charities they support, and for good reason. Nonprofits should be held accountable for their financial stewardship, and donors should have a clear understanding of how their favorite charities operate. One of the most common metrics donors use to evaluate a nonprofit’s financial management is its operating expense ratio; that is, how much of the money a nonprofit raises goes to serve its primary mission, and how much is used to fund general operations (such as staff salaries, facilities and maintenance, etc.) But I would argue that an operating ratio doesn’t paint the full picture; you’ve got to ask the right questions. Who is on the board of directors? Is the mission relevant? Does the organization’s approach seem feasible (that is, does it seem possible that the work the organization does on a day-to-day basis will have a meaningful impact on its mission)? Can the organization demonstrate a track record of success? It’s these questions that will help you determine if a given charity is doing work that is consistent with your values and worthy of your support. The holiday season reminds us of all of the things that matter most to us – family, home, community, faith. How will you express your values through your year-end giving?

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TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

Commentary

Institutions Work Jointly To Honor Black Achievers By Sericia Cole and Charles Stewart Sericia Cole is executive director of the Mosaic Templars Cultural Center in Little Rock, and Charles Stewart is a retired bank executive, community leader and CEO of Stewart Real Estate Development, L.L.C.

he Arkansas Black Hall of Fame (ABHOF) was founded in 1992 by Charles Stewart and Patricia Goodwin McCullough with a mission to recognize the accomplishments of black Arkansans who have achieved national and/or international acclaim in their chosen fields of endeavor. As an authentic Arkansas cultural and historical institution, ABHOF is a reminder that inspiration and motivation can be drawn from African-American men and women with Arkansas roots who have overcome obstacles to achieve extraordinary success. Each Hall of Fame member has dispelled any notion that where one comes from is a limitation to what one can achieve. Each year, a steering committee selects an impressive roster of achievers for induction. Previous honorees include Dr. Samuel Kountz from Lexa (Phillips County), who perfected the technique for kidney transplantation; Louis Jordan from Brinkley (Monroe County), known as the “Father of Rhythm & Blues”; Dr. Oliver Keith Baker of McGehee (Desha County), who heads the Yale University Physics Department and the team that proved the existence of the Higgs boson (also known as “The God Particle”); and from Schaal (Howard County), former U.S. Surgeon General Dr. Joycelyn Elders. The 23rd Annual Arkansas Black Hall of Fame Induction Ceremony on Oct. 17 recognized the Class of 2015 inductees: “Luenell” Batson, comedian, actress and writer; Dr. Mildred Barnes Griggs, Esq., educator and social entrepreneur; Cortez Kennedy, NFL Hall of Famer; Bishop Donne L. Lindsey, religious, business and civic Leader; C. Michael Tidwell, dancer, choreographer and educator; and medical researcher and clinician Eddie Reed, M.D. (posthumous).

Together, the Arkansas Black Hall of Fame and Mosaic Templars Cultural Center are committed to acknowledging those who may never receive worldwide attention, but whose endeavors have nonetheless contributed to the fabric of our state and nation.

DEMONSTRATING WHAT IS POSSIBLE The accomplishments of these esteemed individuals demonstrate the depth and breadth of talent, as well as the ingenuity of spirit, that has originated from Arkansas. The notable deeds and efforts of each year’s class, many of whom are unsung, demonstrate to all what is possible with ambition, hard work, determination and opportunity. To honor its members and educate the public, ABHOF maintains two public galleries: a portrait gallery in the rotunda of the Statehouse Convention Center and a more comprehensive exhibit housed at the Mosaic Templars Cultural Center (MTCC), Arkansas’s museum of black history and culture. A museum of the Department of Arkansas Heritage, MTCC collects, preserves, interprets and celebrates African-American history, culture and community in Arkansas from 1870 to the present. MTCC is a historical and educational trove of black achievements – especially in business, politics and the arts. The partnership between MTCC and ABHOF allows for the prominent ABHOF exhibit located on the museum’s third floor, as well as other projects. DISTINCTIVE EXPOSURE ABHOF and MTCC also work collaboratively with the Clinton Presidential Center to present a Distinguished Laureate Lecture/Performance Series each February, a free public program that features lectures, performances and master classes for students conducted by a member of the Arkansas Black Hall of Fame. Furthermore, MTCC is the venue the ABHOF Foundation uses to announce its annual grant awards. These awards are funded by the Induction Ceremony and Gala and presented to other nonprofit organizations that focus on improving education, health/wellness, youth development and economic development in black and other underserved communities throughout Arkansas. To the men and women of the Arkansas Black Hall of Fame now and in the future, the two organizations provide unique exposure for the brilliance of achievement earned by African-Americans with Arkansas ties and roots. Together, the Arkansas Black Hall of Fame and Mosaic Templars Cultural Center are committed to acknowledging those who may never receive worldwide attention, but whose endeavors have nonetheless contributed to the fabric of our state and nation. www.talkbusiness.net

Feature

Don Allen (second from left) has been having breakfast at the state Capitol cafeteria since 1972. On a recent morning, he was joined at the Round Table by (from left) Jay Winters, state Rep. Scott Baltz, Ron Harrod and Randy Wyatt.

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

Breakfast Clubs Food, fellowship and lively discussions endure at the famed Round Table at the state Capitol cafeteria – and other spots across the state – where elected officials, lobbyists and political junkies gather to solve the world’s problems. By Rex Nelson PHOTOS BY BOB OCKEN

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Feature: Breakfast Clubs

t’s shortly past 7 a.m. on a Wednesday, and Don Allen is sitting at his usual spot. They call it the Round Table, and it’s in the corner of the state Capitol cafeteria in Little Rock. Allen, 85, is the patriarch of the Round Table, a legendary breakfast spot where politics, sports and personalities have been cussed and discussed for decades. Allen became a regular at the table in 1972 when he joined the staff of then-Gov. Dale Bumpers. He can be found in the same seat most weekday mornings, having arrived by 5:20 a.m. “They let me in the back door,” he says. BRASS NAMEPLATES When Allen began coming to the Capitol basement for breakfast, legislators such as state Rep. John Miller of Melbourne and state Rep. Lloyd Reid George of Danville ruled the roost at the Round Table. On the large Lazy Susan in the middle of the table, brass nameplates for Miller and George state that their seats are “reserved in perpetuity.”

The nameplates were purchased by Little Rock attorney George Jernigan, a former

“Most of these legislators have someplace where they go for coffee back in their towns. This is just the Little Rock version of what they have back at home.” – Ron Harrod

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

chairman of the Arkansas Democratic Party and a former chairman of the Little Rockbased Political Animals Club. “When someone dies, we move the nameplates from the actual table to the Lazy Susan,” Allen says. George, a noted raconteur, was born in 1926 in his grandparents’ house at Centerville in Yell County and grew up at Ola. He graduated from Hendrix College and then became a coach and teacher at Fourche Valley, Ola, Morrilton and Gillett. George later borrowed enough money from his father and grandmother to open a butane gas company at Danville, where he was elected mayor. He first was elected to the Arkansas House of Representatives in 1962 and served a total of 28 years. He would celebrate the last day of legislative sessions by wearing overalls, a sign that it was time to go back to the farm in Yell County. George died in February 2012 at age 85. Miller, who lived in Izard County for 84 of his 85 years, was a 1949 Arkansas State University graduate who worked in his

family’s retail business before spending four years as the Izard County clerk. He later opened an insurance agency, a title abstract business and a real estate brokerage. Miller was elected to the Arkansas House in 1958, the start of a 40-year legislative career. He soon became recognized as the expert on the state budget. Miller died in June 2014. There’s one other nameplate on the Lazy Susan. It belongs to former Rep. William K. “Mac” McGehee of Fort Smith, who was elected to the Legislature in 1996 and was found dead of natural causes in his apartment in the Capitol Hill Building adjacent to the Capitol just before the 1999 legislative session. McGehee was given his “reserved in perpetuity” spot because he had the current Lazy Susan made by the Riverside Furniture Co. in Fort Smith and then flew it to Little Rock in his private plane. “It’s a lot bigger than the old Lazy Susan,” Allen says matter of factly. “George Jernigan gave us the old one, but it was hard to reach.”

FROM LEFTOVER PLYWOOD The Lazy Susan has not only bottles of barbecue sauce, hot sauce and pepper sauce but also jars of homemade jams, jellies and preserves that legislators bring and leave there. Jars of honey and sorghum molasses also are dropped off from time to time. The table was constructed by the staff of Arkansas Secretary of State Bill McCuen, who later was imprisoned for corruption in office. McCuen died of cancer at age 57 in 2000. Before his election as secretary of state in 1984, he had served as a public school teacher and principal at Hot Springs, as the Garland County judge and as state land commissioner. He put his signature on everything at the Capitol during his decade as secretary of state and had a soft spot for those who sat at the Round Table. The new table – the smaller version used in earlier years now sits on the other side of the cafeteria – was made out of leftover plywood from a Christmas display. Capitol observers thought the Round Table’s days were numbered in November

2014 when Arkansas voters approved an ethics amendment that would no longer allow lobbyists to buy breakfast for legislators. For years, lobbyists would put money in the pot to fund the breakfast activities. Legislators who were invited to sit at the table simply went through the line, got what they wanted and had their purchases recorded in the spiral-bound notebook that rested next to the cash register. Ron Harrod is a longtime lobbyist who became a regular at the Round Table after being appointed in early 1983 to the powerful Arkansas Highway Commission to replace James Branyan of Camden. Harrod, a Dumas native, was an insurance agent in Prescott at the time. “When the ethics amendment passed, we decided to shut down the table,” Harrod says. “But you know what? Not a single legislator complained about having to buy breakfast. We found out that it was about the fellowship rather than the food.” He then adds with a smile for the benefit of the legislators at the table: “We’re not

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Feature: Breakfast Clubs allowed to buy them breakfast, although one of them could buy me breakfast. To this day, not a single legislator has offered to buy my breakfast.”

Rep. G.W. “Buddy” Turner, he became the parliamentarian for the Arkansas House and served for 38 years until retiring in 2011. Massanelli worked with 19 speakers, seven governors and more than 1,000 House members. He was replaced by Buddy Johnson, who began working for the House in 1985 after having served as a reporter for United Press International. Johnson joins the breakfast group on this Wednesday morning, trading barbs easily with Allen and Harrod. Massanelli’s nameplate has a spelling mistake. It says his chair is “reserved in perpeturity.” The regulars decided to leave the plate just like it is so they could give Massanelli a hard time. Allen tells stories of past legislators such as the late state Rep. Bobby Newman of Smackover, who Allen says would order three soft eggs each morning and then sop up all the yoke with his toast. Then there was the legislator who irked the late Zelma Maxenberger, who managed the cafeteria for a quarter of a century. The legislator, who

THE NAMES ON THE TABLE There are still two brass nameplates on the table rather than the Lazy Susan. One belongs to Allen, who became the executive vice president of the influential Arkansas Poultry Federation in 1976 and held the job until 2000, when he retired and was replaced by former state Sen. Morril Harriman. When Mike Beebe became governor in January 2007, Harriman resigned from the Poultry Federation to become Beebe’s chief of staff, a job he held for Beebe’s entire eight years as governor. The other nameplate belongs to Tim Massanelli, a native of the community of Goat Shed in Lincoln County. Massanelli worked on his family farm, ran a liquor store and managed a coin-operated machine business during the early years of his career. In 1973, at the suggestion of state

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TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

shall remain nameless, would loudly ring a bell for service prior to the official opening time of 6 a.m. Told by the management that no coffee would be served until 7 a.m. if he didn’t stop ringing the bell, the offending legislator was banned from the Round Table. “Sometimes we have 14 or 15 people sitting over here at one time,” Allen says. “I have to tell you that the idea of lobbyists buying politicians with a meal is pure BS. This has simply been a way for us to get to know each other through the years.” TIME-HONORED SPOTS Harrod says: “Most of these legislators have someplace where they go for coffee back in their towns. This is just the Little Rock version of what they have back at home.” Many of the traditional spots where Arkansans gathered for breakfast and political talk in the 20th century are gone. One notable example was the Sno-White Grill at Pine Bluff, which closed earlier this year and was replaced by an Italian restau-

rant. Sno-White was founded in 1936, one year before Walt Disney produced his first full-length animated classic, “Snow White and the Seven Dwarfs.” The restaurant closed when Bobby Garner decided to retire at age 79. Garner would arrive at 5:30 a.m. six mornings a week with the restaurant opening at 6 a.m. Among the coffee-drinking regulars, there were 6 a.m., 7 a.m., 8 a.m., 9 a.m. and even 10 a.m. shifts. While the state Capitol has the Round Table, Sno-White had the famed Back Booth. It was a large booth with political posters covering the walls behind it – “I’m for Arkansas and Faubus,” “John McClellan for Senate,” “Dale Bumpers for Senate” and even “Monroe A. Schwarzlose, Democratic Candidate for Governor, The Law and Order Candidate.” Schwarzlose, who raised turkeys in nearby Kingsland, ran for governor in the Democratic primaries of 1978, 1980, 1982 and 1984. Kelley-Wyatt’s in Batesville had its Round Table, where Independence County

Mark McElroy, state Rep. Scott Baltz and Ron Harrod join in on the topic of the day at the Round Table.

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Feature: Breakfast Clubs politicians gathered for years. The restaurant closed for a time but reopened earlier this fall. Jerry’s in Fayetteville, long a breakfast gathering spot near the Washington County Courthouse, is gone. But a well-known restaurant up the road in Springdale lives on. In 1944, Toy and Bertha Neal began serving meals in Springdale. Neal’s Café still opens at 6 a.m. seven days a week and is a political gathering place for the northwest corner of the state. In fact, its political cachet increased when owner Micah Neal was elected to the Arkansas House in 2012. Toy and Bertha Neal were Micah Neal’s great-grandparents. Micah’s father, Don Neal, later ran the restaurant in the landmark pink building. In Conway, Bob’s Grill on Oak Street downtown has the motto: “If it happens in Conway, it’s talked about at Bob’s Grill. THE POLITICAL ANIMALS CLUB Away from the state Capitol in Little Rock, the breakfast spot for politicians was

once the Coachman’s Inn, a hotel owned by famed financiers Jack and Witt Stephens. It stood where the downtown post office is now located. In 1983, Skip Rutherford left the staff of U.S. Sen. David Pryor and moved to the private sector to work for Mack McLarty, the chief executive officer of Arkansas Louisiana Gas Co. Rutherford missed politics and wanted an excuse for those with a strong interest in the political game to gather and talk about what was going on in Arkansas. He asked some friends to join him one morning at the Coachman’s for breakfast. Judge William J. Smith was invited to talk about former Gov. Orval Faubus and the 1957 Little Rock school desegregation crisis. Afterward, those in attendance agreed to meet again and bring friends to what they decided to call the Political Animals Club. At first, Political Animals Club membership was limited to people who were not running for or did not hold elective office. When Rutherford announced in 1987 that he was going to run for the Little Rock

School Board, he stepped down as club chairman. The Political Animals Club had moved its meetings from the Coachman’s Inn to the Little Rock Hilton (now the Clarion) on University Avenue by that time. Jernigan took over as the second chairman in 1987 and was succeeded by his law partner, Russ Meeks. The fourth Political Animals chairman was Bob Lyford, the general counsel for the Arkansas Electric Cooperative Corp. During Lyford’s tenure, the club often held its 7 a.m. breakfast meetings in the ornate conference room at the AECC headquarters in southwest Little Rock. In January 2007, Lyford handed over the chairmanship to Steve Ronnel, a Little Rock businessman who had worked in the White House during the Clinton administration. Ronnel switched the meeting time from breakfast to lunch as times changed and fewer people wanted to show up at 7 a.m. The Coachman’s has long since been replaced by downtown’s Capital Hotel (also owned by the Stephens family) as the break-

In Arkansas, your day could unfold many different ways. Listen to the birds welcoming a new day as the sun rises. Watch the sparkle in children’s eyes as they listen to stories of the past. Find inspiration in both the simplest sculpture and the most grandiose architecture. Go see a play or listen to an amazing vocalist, and simply be in that moment. Wherever a day in Arkansas takes you, one thing is certain: You could wander the earth for a lifetime and never find a place quite like this.

Explore the allure of Authentic Arkansas. Find out how at ArkansasHeritage.com. ARKANSAS NATURAL HERITAGE COMMISSION

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

fast gathering spot of choice for lobbyists who are looking for something a bit fancier than the basement of the Capitol. Most mornings now find several tables filled with lobbyists and legislators (who presumably are paying for their own meals). REMEMBERING GWATNEY Though breakfast meetings of the Political Animals Club are now a rarity, there are smaller breakfast groups that meet on a regular basis to talk politics. Rutherford is a member of two such groups. One group began meeting in 1991 at a now-defunct downtown Little Rock restaurant known as Hungry’s. It later met in North Little Rock at Roy Fisher’s Steak House, also now defunct. For years, Fisher’s waitress Mary Daniell, who died in February 2011 at age 71, would trade good-natured insults with a group whose regulars included Rutherford, thenstate Sen. Bill Gwatney, former Little Rock banker Gene Fortson and longtime North Little Rock political gadfly Walter “Bubba” Lloyd Jr. Members of the group and even

the waitress would tease Gwatney because of his family money, especially when he would order a staple of the Fisher’s breakfast menu known as “the working man’s breakfast.” “That’s as close as you’ll ever come to being a working man,” Daniell would tell the automobile dealer. Gwatney was the chairman of the Arkansas Democratic Party in the summer of 2008 when he was murdered at state party headquarters by a lone gunman, who was killed later in the day during a shootout with the police. No reason for the murder was ever discovered. Soon afterward, Rutherford said of the breakfast group: “We had no regular schedule. It was just when somebody sent a notice out. It was always a long breakfast, talking about politics, sports, current issues. Those conversations were great because Gwatney would unload on any issue. Politics was a common ground. When I was state party chairman, I used to say in speeches that my best achievement was making sure Bill Gwatney ran as a Democrat and won as a Democrat.”

After taking a break following Gwatney’s death, the group began meeting again. The members now gather at the Red Door at the foot of Cantrell Hill in Little Rock. Rutherford also is a member of a Saturday group organized by Little Rock businessmen Bill Booker and Graham Catlett. “Bill and I began having brunch on Saturday at Buster’s in the early 1980s,” Catlett says. “We later began meeting at Copper Grill at 8 a.m. each Saturday, and the group grew. Our meeting places move seasonally.” Among the regulars is Little Rock Mayor Mark Stodola. “By 9 a.m., all the world’s problems are solved,” Catlett says. (TB&P contributor Rex Nelson is senior vice president and director of corporate communications at Simmons First National Corp. He is a regular columnist for the Arkansas Democrat-Gazette and appears regularly on various radio shows. He is the current president of the Political Animals Club.)

Like elves on a mission, we love exploring Little Rock during the holidays! Searching for that special, one-of-a-kind gift in the city’s unique neighborhood shops, grabbing a delicious meal as we carefully check off our lists, and watching the beautiful lights of the bridges before heading for the warmth and comfort of home. Little Rock has a new Southern style that’s uniquely its own, and we get to experience it each day, right here in Little Rock.

HOLIDAY EVENTS Big Jingle Jubilee Holiday Parade Sat., Dec. 5 • 3 PM Wildwood Park for the Arts Holiday Tour of Homes Sat., Dec. 5 The Rep – Disney’s “The Little Mermaid” Dec. 4 - Jan. 3 Arkansas Children’s Theatre – “The Gingerbread Man” Dec. 4 -20

Arkansas Symphony Orchestra/ Ballet Arkansas – “The Nutcracker” Dec. 11 - 13 Arkansas Chamber Singers Holiday Concert – “The Peace of Christmas” Dec. 12 & 13 Arkansas Symphony Orchestra “Holiday Pops with the ASO” Dec. 18 & 19

Big Jingle Jubilee Holiday Parade For a complete listing of holiday activities and events, go to HolidaysinLittleRock.com www.talkbusiness.net

Profiles Service PHOTO: ROBY BROCK

Chris Masingill says he has “been fortunate to have this opportunity” at the Delta Regional Authority. He has collaborated with stakeholders to model new approaches to workforce development, job creation and entrepreneurship.

The Power of Regionalism Delta Regional Authority co-chair Chris Masingill preaches the politics and economics of the long-struggling region. Like a spiritual leader, he knows he’s saving lives. By Michael Wilkey

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

pend five minutes in a room with Delta Regional Authority co-chairman Chris Masingill and you’ll feel like you’re in the presence of a preacher – and you are. Masingill preaches the gospel of the Delta’s revival, and whether he’s working a room full of community leaders, delivering a presentation to a captured audience or recounting to a reporter the progress and patience needed to advance his economically-challenged circuit, you’ll understand he has a calling to make a difference. Masingill, 43, lives in Little Rock with his wife, Melissa, and two daughters, and travels weekly across the eight-state region that includes parts of Arkansas, Alabama, Illinois, Kentucky, Louisiana, Mississippi, Missouri and Tennessee. He’s spent plenty of time in politics, having served on the staffs of Sen. Blanche Lincoln (who helped create the DRA), Congressman Mike Ross and Gov. Mike Beebe. But Masingill has economics in his blood, having spearheaded Beebe’s management of the Great Recession when the federal government doled out billions of dollars to keep the U.S. economy from cratering through the American Recovery and Reinvestment Act of 2009. Appointed by President Obama and confirmed by the U.S. Senate in 2010, Masingill has used the position to push for healthier communities, leverage federal and state funding to advance economic projects, and collaborate with stakeholders to model new approaches to workforce development, job creation and entrepreneurship. Talk Business & Politics’ Michael Wilkey caught Masingill at a Jonesboro economic development conference in October for a conversation about what’s happening and what’s next. TB&P: What would you say that you have learned the most from serving as DRA co-chairman? Masingill: A couple of things come to mind. The first one is there are some really amazing, incredible people in the region that are giving their heart and soul to save their communities and to keep their kids home; to provide an amazing opportunity. They love their communities, they love their neighbors and their home and they recognize the tremendous economic challenges and local challenges that they have. They’re working very hard. I have also seen

that we have got a real gap in actually doing a better job of being more regional in our focus. We still have a lot of places that are isolated into thinking very locally and not regionally in dealing with those issues. And that is real important. You have to tackle economic development. From a regional perspective, you need to be working together in a regional fashion with multiple communities on just about every issue that faces us from economics to infrastructure to workforce training and education to the environment. We need to do a better job of that. We still

“We have got to put a stronger emphasis on getting kids through this process of connecting the dots. It is about K through J – kindergarten through job, not about K-12 or K through 16.” – Chris Masingill

Delta Regional Authority have a lot of places that don’t understand the power of regionalism. We still have to do a much better job of providing capacity, capacity to be more competitive with organizations, with communities, with our workforce, the ability for individuals to have greater capacity to be successful, to educational attainment or health or local challenges. We need more professional, economic and community developers on the ground doing that. And lastly is that there are some really

amazing things happening around the region. People, I think, initially want to think of all the bad things. I have been able to learn very quickly that even with all the challenges, there are some amazing things happening. There are some individual projects that are having a huge impact. I tell you, one of the coolest things that I have learned in my five years is that the Delta region is a pretty, damn cool place. TB&P: One of the major issues the Delta faces on a daily basis is workforce training and development. How do we create a cohesive policy on training workers for the future while still not stifling ingenuity and people thinking outside the box on possible solutions? Masingill: First and foremost, you have to tackle this regionally. You’ve got to have a regional strategy. You have got to look at changing the model. And you have got to look at changing the system. The reality of it is we have got to create a system that is connected, that is linked to economic development, that we are re-thinking the model. We have to reimagine what readiness looks like. Are we providing opportunities that are seamless? What career pathways are exposing our youth much earlier to the world of work? Are we encouraging or incentivizing our young people going into the highest demand trades? We recognize, particularly here in Arkansas, that we have not done a very good job of teaching our young people and our parents, quite frankly, the importance of career and technical training. We’ve got to do a better job with that. We recognize that we’ve got jobs that are open right now that we cannot fill because of the mental skills gap. And there are programs that are doing some pretty significant things. That is why we are a big proponent of the ACT Certified Work Ready Community. In fact, we have been shepherding this for the last couple of years. Why does it take so long to get through school? We recognize that not every occupation requires a four-year degree. We want to encourage additional educational attainment, but it does not necessarily mean a four-year traditional baccalaureate degree. We need to be encouraging young people to look at the broad perspective of where we www.talkbusiness.net

Profiles: The Power of Regionalism are going. What are the needs of business and industry? Are we incentivizing that? Are we recognizing for the last 20 years, we have done a very poor job of putting a negative image on career and technical training? Working inside of an industry or manufacturing facility is cutting edge. It is technology based. It is STEM (science, technology, engineering and mathematics) related. And that the other part of that is that we need to recognize the importance of

soft skills, employability skills. That is just as important as learning specifics trades or specific technical skills. We have got to make sure that we are providing that opportunity. It is about K through J – kindergarten through Job, not about K-12 or K through 16. We are talking about lifelong learning, about career pathways and that is different for every kid. TB&P: What would you say is your overall

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vision in facing many of the issues that the Delta Regional Authority deals with every day? Masingill: We operate in a different world. We are in a world economy. We are not competing Jonesboro against Helena. We are not competing Arkansas against Tennessee. We are competing against Mexico and China. We are competing with countries around the world and this issue of workforce training and education is the number one issue impacting economic development, bar none, and that is why it is so important. That we in Arkansas, we in the Delta region, fix this issue, get to the place where we are meeting the needs of business and industry when it comes to a supply side, not just the demand side as it relates to workforce training and education. And if that means we have to go to the drawing board and redo the system, then that is what we should do. We should have the political courage to address those issues from funding to the structure of how we have higher education. If that is what it means, then that is what we should have the political courage and leadership to do. That is what the future of economic development is demanding, and quite frankly, what those who are creating the jobs are demanding. TB&P: The late CEO of Big River Steel, John Correnti, said in late 2014 that the construction and opening of Big River Steel near Osceola will create an economic impact within 150 miles of Osceola. What can the region do to benefit from the $1.3 billion that is expected to be invested in the project? Masingill: It starts first with workforce training and education. Secondly, communities have to realize or really discover what their true assets are. You have mentioned tourism. Tourism, from our position, cultural tourism, geotourism, all of these things are an important component of the local economic development strategy. In fact, in the Delta region, tourism – heritage tourism, cultural tourism, geotourism – all of those things are important. They have a huge economic impact on our local communities’ economy or regional

economy. In fact, tourism is one of our biggest contributors for the entire region. It goes right along with small business development and it is about leveraging, it is about maximizing what that asset is; and that, in a lot of our rural communities, is just as important as the traditional economic development. It has to be all tied in. If you’re Clarksdale, Miss., home of the Crossroads, one of the most legendary landmarks of blues music in the entire world, people from all over the world come to the Delta region because of the music and cultural heritage. They spend lots of money. They stay longer. They have a huge impact and so for that community, for that region and that state, that strategy to bolster, expand, to broaden tourism as an economic development strategy is just as important as recruiting a Big River Steel. Big River Steel will have a huge impact. But the thing we have to realize is that impact is truly region wide. Let’s also remember Mississippi County is home to Nucor Steel – an amazing company – an amazing economic contributor but yet the unemployment rate in Mississippi County is double digits. So we have to understand the relationship this has from an economic development standpoint and that they are drawing from a huge range. He said 150 miles. I totally agree with that. We know for a fact, that people in our footprint, will drive 50 miles one way to go to work. So, they are pulling from everywhere and when they have a company that strong and with Big River Steel, there will be no exception – high-demand jobs, highwage jobs and that gives them the ability to pull talent, human capital from a lot of places. TB&P: The chairmanship of the Delta Regional Authority is not a lifetime appointment. How long do you think you might stay in the post and what do you think your legacy might reflect? Masingill: I serve at the will of the president. And with every new president, they will obviously evaluate their own philosophy of that. I have been fortunate to have this opportunity. I am very appreciative

of President Obama for giving me this opportunity. I am very appreciative of (former) Gov. Beebe for giving me an opportunity to still be involved when I worked for him, to be involved in economic development at the state level. To be able to be on the board, to have that understanding. I am thankful to (former) Sen. Blanche Lincoln, who helped create the DRA, when I was one of her staff members in D.C. during

that time period. And I got to see this firsthand. So, I have had a close connection and strong belief in the power and impact an organization, like DRA, can have. I look forward to finishing my term and I think our legacy is going to be making DRA what Congress wanted it to be – an economic development partner that was able to leverage resources, its small resources with local resources, and have some profound impact – and we have done that.

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Fine wooden cutting boards and handled serving trays are among the many products Paul Gillam Jr. and his father, Paul Sr., create at Blue Mountain Woodworking.

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PHOTOS COUTESY OF BLUE MOUNTAIN WOODWORKING

Two Hearts in the Wood Blue Mountain Woodworking: father and son design a living. By Casey L. Penn

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

he contact page of this company website lists just one name: Paul Gillam. The photo to its left shows two smiling men standing a few inches – and exactly one generation – apart. Both depictions are correct. Founded in 1987 by Paul Gillam Sr. (“Big Paul”), Blue Mountain Woodworks is a custom woodworking shop located in the Ozark mountain town of Timbo, Arkansas. It specializes in functional fine-art products and custom furniture items handcrafted from fine woods – some exotic, some native to the state. The latter includes hardwoods like walnut, cherry, red and white oak, hickory, ash, maple and aromatic cedar. The former are imported from South America, Costa Rica, Africa and other countries. These days, Blue Mountain is run by Paul Gillam Jr. (“Li’l Paul,” or “Gillam”), but it remains a father-son endeavor that has represented many things to these two men and their families over the past 28 years. Their creations include fine wooden cutting boards, pizza peels, Lazy Susans, cheese boards, handled serving trays, butcher-block tables and other custom gift items. They also make otherwise customized pieces by request, which has ranged from large tables to full cabinet sets custom installed. “We started our business by building all types of cabinets with real wood, attention to detail and many styles of doors and trim,” says Big Paul, who developed woodworking first as a hobby. His love for the craft grew when he worked at the Ozark Folk Center. In their furniture shop, he worked with hand tools and made chairs and other furniture items. Prior to that, Big Paul’s professional background was in nursing. He holds a Bachelor of Science degree in industrial technology from Pittsburg State University (1970) and spent time working as a registered nurse and in related jobs. The younger Gillam enjoyed growing up around the wood shop. He learned a great deal from his father, and in high school, learned even more while working construction and as a craftsman for Hollow Earth Swords. He attended college for a couple of years, and by that time, had grown into a busy shopkeeper. Finally, he decided that the wood shop was where he belonged.

By 2005, Blue Mountain had become a full living for this father-son team. Big Paul retired from nursing and the two have enjoyed many years of working full-time together. “Everyone in my family has graduated college,” reflects Gillam, who has not ruled out going back. “The fact is, right now, the business and what I do here keeps me busy, and I’ve done pretty well. It is quite an experience in itself – to make your own product and then to travel and sell the product.” Last year, Gillam officially took over operations. “I do the majority of the work now,” he says, crediting his father for his knowledge and passing it on. “Dad is selftaught, and he has taught me a lot. He still helps me design things and we bounce ideas back and forth. SECOND GENERATION Timbo is no metropolis. Often associated with folk artist Jimmy Driftwood, it’s a small town situated between Leslie and Mountain View known more for its slow pace and musical nature than for its wealth and industry. Paul Gillam Sr. settled in the area in the 1980s during the region’s musical heyday. A player in Rackensack, a group dedicated to preserving the music of the Ozarks, he was a friend to the late cartoonist, George Fisher, who owned a house next door to Driftwood’s property. “When Rackensack came up each year for Folk Fest and Beanfest, huge crowds of people would camp here and enjoy the music,” recalls Li’l Paul. “That’s what brought us to Timbo. Dad decided to be a part of that.” In the mid-1990s, the large crowds lessened. However, it’s worth noting that the music continues to resonate from the region. Case in point, neighboring Mountain View, with its Ozark Folk Center and other local shows, still boasts its famous downtown “square” always ripe for picking music. Growing up in this area devoid of factory jobs and other urban employment opportunities, Li’l Paul learned early on to set his mind on hard work and simple living. “Other than being strong willed and determined, you know that you’ll have to work hard,” says Gillam, “but you also know that if you work hard, you might just

succeed.” What is success? After 20 years in business, these two woodworkers joke around sometimes about their short journey to becoming an overnight success. “We’ve worked hard, and we’ll continue to work hard,” Gillam says, “But we do all right. As for me, I am able to work with my father, I love what we do, and I couldn’t ask for anything else from life.” PUTTING IN THE TIME “Handcrafted” can mean different things to different people. To these Blue Mountain artists, it is starting from logs or rough-cut lumber and going through labor-intensive steps to design, plan and construct a piece. “We maintain our own kiln for wood drying,” explains Gillam, who begins a piece by first drying the lumber to the proper moisture content before planing and edging the lumber. Next, he selects the board for the project and starts to design the piece. “Our designs are unique, often following the function of the piece of furniture. We make things to be used, with strength to last at least a lifetime, but we also make them to be beautiful. Everything we build is handconstructed allowing us to vary anything from the wood used to the size of the piece.” In addition to working with locally grown and cut woods, Gillam brings in exotic woods for use in bending and twisting contrasting woods together. “A signature piece for us now is one in which I will intersect native woods with exotic woods,” he says. “It’s a process that takes days for one piece, but it comes out beautifully. “We don’t stain anything. Most everything we do is 100% organic finish that is completely safe for food use. So to add color, we’ll find wood with vivid color to it.” MOVING THE PRODUCT Arts and crafts shows are one of the company’s main avenues to profit. Li’l Paul travels nationwide, targeting markets in Washington, D.C., Kansas City, Chicago, Minneapolis and other cities that put on shows that best fit Blue Mountain’s product line. “We don’t do just any show,” Gillam qualifies, noting that he applies to suited shows via annual competitive application. “There are no free rides back to the shows www.talkbusiness.net

Profiles: Two Hearts in the Wood once we’ve been there,” says the shopkeeper, who has narrowed his show schedule down to about one per month. “It’s a fresh approval process each year – for many shows, about 150-200 vendors get in out of around 1,000 applicants.” Years of shows – hundreds over the past several years – have brought with them lessons learned, sometimes the hard way. The father-son team has learned to ease their burden, for instance, by not making and carrying large furniture pieces. They have found that smaller, giftable products sell better in a craft-show environment. Little Rock resident Sharon Russell purchases several Blue Mountain gift pieces each year. A longtime customer, she appreciates the pieces for their function, their beauty and their story. “The wood they use has a story – where they found the tree, how long it took to dry and the artistry of cutting,” says Russell, who found the Gillams on the Internet about seven years back. Now, she buys several pieces each year for herself and for her friends. For gifts, she usually chooses products from the exotic wood line. “I am amazed at the artistry behind combining two or more exotic woods,” Russell says. “For myself, I buy from the oak line, and I love that I am buying a useful item for my kitchen as well as a piece of art. I use the back of the cutting board and display the front for artwork. I

hope to buy from the Gillams for years to come.” Small products in no way infer mass production, according to Gillam. “Our customers have come to expect unique products developed from creativity and patience. “There are not many people making what

The Gillams – Paul Jr. (left) and Paul Sr.

we’re making. A lot of people make cutting boards, but not many people make a beautiful cutting board,” he illustrates. “You will see people at shows who sell 300 of the same thing – stacked to the sky – 300 items of the same color, size and wood so that you feel like you’re in a department store. That is not our specialty. We specialize in ingrain cutting boards. They’re sturdy, beautiful and difficult to make. We sell our cutting boards to a lot of chefs and avid cookers. I look at it this way: if you are going to have it for 20 years, why not make it stand out. Why not have beauty and function?”

Blue Mountain designs items in a wide variety of shapes and sizes. “Our work is one-of-a-kind,” Gillam says. “If you see a piece you like, we can make you a similar one, but we remind everybody that each piece is unique. We use no CNC machines. For the shows we sell through, handcrafted artistry is expected. It’s what we love about what we do.” In addition to reaching consumers through fine arts festivals around the country, Gillam shares the company’s product line online and through annual events such as Mountain View’s Off the Beaten Path studio tour. Products are also on display at a growing number of local and regional fine art galleries. These include the Arkansas Craft Gallery in Mountain View, the Crystal Bridges Museum Store at Bentonville and the Appalachian Mountain Galleries in Washington, D.C., and Reston, Va. As a member of the Arkansas Craft Guild, Blue Mountain Woodworking will be featured in the Guild’s Annual Christmas Showcase. The event will be held at the Statehouse Convention Center in Little Rock in early December. For information and online purchase opportunities, visit bluemountainwoodwork. com, Etsy.com/shop/BluMtnWoodworks, or Facebook.com/bluemountainwoodworks. Reach Paul Gillam – one iteration or the other – at the shop at 870-746-4764.

The Arkansas Craft Guild

37th annual Christmas Showcase is set for December in Little Rock

he Arkansas Craft Guild recognizes and promotes the finest artists and craft artisans in Arkansas (a select few out-ofstate artists are approved). Member work is for sale year-round from the Arkansas Craft Gallery located in Mountain View. In addition, the Guild holds an annual Christmas Showcase each December to highlight members’ work. Now in its 37th year, the Showcase is set for Dec. 4-6, 2015, in Hall 4 of Little Rock’s Statehouse Convention Center. This popular event features more than 100 artists, all jury selected and approved.

Pre-event highlights include Arts After Hours, scheduled from 6-8 p.m. on Friday, Dec. 4. This event is free to enter and features a beer tasting at Stone’s Throw Brewery. Also free admission will be The Early Bird Shopper’s Special scheduled from 8 to 10 a.m. on Saturday, Dec. 5. During both of these pre-event highlights, guests will be able to enjoy free samples of locally roasted coffee, free range to shop the artists and other surprises such as door-prize opportunities. The event itself is always an exciting day for patrons who travel from all over

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

Arkansas and beyond. “We take pride in the high quality vendors that take part in the show,” says board member and Guild artist Aaron Gschwandegger, who was featured in a past issue of Talk Business & Politics. “Our artists represent many different mediums – from jewelry to photography, from painters to potter, from handcrafted woodworking to homemade soaps and candles. We invite everyone to watch our showcase Facebook page for updates close to the event.” Hunter Harris, now in his fourth melon-selling season, is a big believer in Cave City watermelons. See Facebook.com/ChristmasShowcase.

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Shops like Mellon’s Country Store and the Arkansas Craft Gallery offer distinctive items. The latter showcases the work of Arkansas craftsmen, such as Peter Lippincott’s pottery and Nikki Bond’s Nikki’s Naturals line of artisan soaps and specialty herb products. Mellon’s – with a unique mileage sign out front – and the Jimmy Driftwood Barn are among the venues that feature live music. PHOTOS BY BILL PADDACK

There Are More Than a Few Things to Do in Mountain View Rich in tradition, Stone County town and the surrounding region offer the sights, sounds, tastes and experiences of the Ozark Mountains. By Bill Paddack 26

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

ountain View prides itself on treasuring the past while embracing both the present and the future. And just about anyone you ask will tell you all of this is accomplished by some of the friendliest folks you’ll find anywhere. Known for its dedication to preserving the music, crafts and heritage of days gone by, the welcoming, affordable Stone County town is a great place for either a family vacation or a weekend getaway. Corky Baker, president and CEO of Stone County Ironworks, is more than happy to expound a bit on the town his company calls home. “Mountain View is a beautiful gem set in the scenic hillside wonder of the Ozark Mountain range,” Baker said. “Forests, creeks and bluffs combine to form the very reason why so many come to hike, camp, float, trout fish or ride their mountain bikes along the epic Sylamo Bike Trail.” Baker points out that music is a “very big part” of the local culture. “There are regular shows around town or at the Ozark Folk Center,” he said. “On Friday or Saturday night you’re likely to find groups of musicians in the Picking Park or on the Courthouse Square singing the old songs or just listening to the wonderful sounds from mandolin, guitar and fiddle.” ‘A SPECIAL PLACE’ Glenda Wiseman is another area resident who is pleased to highlight a few details about the region she now calls home. She has a couple of booths at Main Street Antiques and works about a half dozen days a month helping run the store. And, she’s mayor of neighboring Big Flat, a community she also enjoys promoting. “Mountain View has a special place in my heart,” she explained. “My husband and I came here for a number of weekend visits through the years and even though we were satisfied where we lived [Northwest Arkansas], there was always this little tug to stay a little longer and to come back more often. The area is just beautiful, especially if one likes what I call softer mountains and trees than are west of the Rockies. The rivers and lakes are beautiful; good fishing and floating, but there is a warmth about the town and people of Mountain View that makes one feel at home.

“The people are friendly and so open, endeavoring to help anyone find their way around the town and the area,” Wiseman said. “One would have to travel around a bunch to find music and musicians, both those that live here and those who come here, young and older, with the amount of talent and fun they have to offer. The Ozark Folk Center State Park offers a bit of history of the area and makes for a fun time both during the day and at night where local talent is showcased in the large auditorium on the grounds. “We moved to the area in 2006 sensing a leading of the Lord to do so,” she continued. “We found the friendliness and beauty was not limited to Mountain View, but extended through the Ozark National Forest on Highway 14 to the small town with a big heart, the city of Big Flat. This town, as so many smaller towns around the country, lost its school sometime back and with it went a lot of the folks and businesses. However, because of the tenacity and vision of the townsfolk and those of the surrounding area, Big Flat has not gone the way of many towns in the same position. Our gym is on the Arkansas Historical Preservation List, we have been able to keep our Post Office, we have a fire department with equipment big towns don’t have and we have numerous activities throughout the year, including our big homecoming event every Memorial Day weekend. There is a large campus including a much-used Community Center with pavilion, walking track and playground where residents and tourists alike can take a break.” Wiseman summed up her thoughts with an open invitation to visitors and tourists. “So come to the area to visit, relax and refresh from the hustle and bustle of life and meet people literally from all over the world,” she said. “If you sense a leading to move to the area, you will be welcomed into the family. But no matter, come often and enjoy all the happenings and folks.” A VARIETY OF FESTIVALS Mountain View is host to a number of annual festivals, including the Arkansas Folk Festival held in the spring, Mountains, Music and Motorcycles in August, the just-completed Annual Bean Fest & Great Arkansas Championship Outhouse Races

and the Mountain View Bluegrass Festival coming up Nov. 12-14. Another event – the Herb Harvest Fall Festival – is the reason my wife and I, along with our rescue dog, found ourselves in Mountain View for the third year in a row on the first weekend of October. While my wife and some friends from the Arkansas Unit of the Herb Society of America joined with folks from around the U.S. to hear speakers outline the many uses of herbs in the conference at the Ozark Folk Center, my dog and I took a number of walks in the woods and roads around the cabin where we stayed. Then while she snoozed, I checked out several local places. Here – in no particular order – are some stops you might consider when visiting Mountain View, some well-known, others not so much. And, by the way, Mountain View is pet-friendly with a number of hotels, cabins and lodges willing to let four-legged friends stay with their human buddies. ARKANSAS CRAFT GALLERY Always one of the first stops for us on any visit to downtown Mountain View, the Arkansas Craft Guild’s Gallery is an outstanding showcase for the works of creative artists and craftsmen from all across the state. When we visited, Jeff Griesmaier, who adds touches of paint to his fine art photos, was on hand one day, and Aaron Gschwandegger, who sells his nature photography and hand-crafted home décor though his Fallen Pine company, was there the next. “The Arkansas Craft Guild’s Gallery in Mountain View is the perfect place to see the work of talented artisans from around the state,” Gschwandegger said. “While the variety is too numerous to list, visitors can see anything from handcrafted brooms, soaps and wood-turned bowls to pottery, jewelry, fine art photography and paintings. If you stop by the gallery on Friday and Saturday, a Guild member artist will be working there. The gallery is an important part of what makes Mountain View a unique and worthwhile destination.” OZARK FOLK CENTER Dedicated in 1973, the Ozark Folk Center preserves the area’s unique culture through programs, concerts, craft demonstrations, www.talkbusiness.net

Profiles: Mountain View workshops and a year-round roster of events. It’s a state park with guest cabins, conference center and The Skillet Restaurant, home of good, down-home cooking. See quilters, spinners, weavers and woodworkers showing how it was done back in the 1800s and enjoy music featuring such instruments as autoharps, picking bows and the mountain dulcimer. STONE COUNTY IRONWORKS GALLERIA As mentioned earlier, Mountain View is home to Stone County Ironworks or, as Baker and his staff like to call it, “America’s Blacksmith Shop.” A visit to the gallery on the square is an outstanding way to see the fine products the company and its local craftsmen make. In the Galleria, Baker points out, “you will find 8,000 square feet of spectacular, hand-forged works of art posing as iron home furnishings. For 27 years, the Ironworks store has sold product at retail, but now is a wholesaler to the Public Factory Superstore showcasing the wide variety of the 1,200 furniture, lighting and decor items made by Stone County Ironworks right here in Mountain View. “The manufacturing operation,” Baker continued, “is almost 100,000 square feet of

gifted artisan blacksmiths, coppersmiths, finish artisans and woodcarvers. Everything is made the old-fashioned way with tools and techniques from days gone by. In the Galleria you will also find The Portico, a full-service coffee house and quaint Italian eatery for lunch or dinner.” BLANCHARD SPRINGS CAVERNS Cool (literally) and spectacular, this cave system north of town is a must. The popular Dripstone Trail has been open since 1973. With a temperature of 58 degrees yearround, it’s pretty wonderful on a hot Arkansas summer day. But anytime is a great time to experience its beauty, check out the calcite formations found in limestone caves and learn the difference between stalagmites and stalactites. THE RAINBOW CAFÉ What’s a stop in Mountain View without a trip to PJ’s Rainbow Café? Friendly waitresses are happy to serve up awesome chicken fried steak, great side items like mashed potatoes and gravy and fried corn on the cob, and terrific breakfasts options. Plus you have to check out the display case that features a number of pies, many piled high

PHOTOS COURTESY OF STONE COUNTY IRONWORKS

TROUT FISHING ON THE WHITE The White River and its world-famous trout beckon sports enthusiasts of all ages. The White River has a reputation as one of the best trout streams anywhere and various services and guides are available to help even novices take in the pleasure of landing brown and rainbow trout. JOJO’S CATFISH WHARF It’s always a good sign when a place is packed on a Friday night, as that usually means locals – as well as out-of-towners – love it. Such was the case at JoJo’s Catfish Wharf on the banks of the White River. There are steaks and chicken and burgers and homemade desserts, but the reason for stopping by is in the restaurant’s name. The fried catfish more than lived up to its billing. MELLON’S COUNTRY STORE From jams and jellies to hand-crafted knives, this store outside town on Highway

PHOTOS COURTESY ARKANSAS DEPARTMENT OF PARKS AND TOURISM

Many of Stone County Ironworks’ products can be seen in its Galleria on the Square in Mountain View, including coffee tables, breakfast tables, chairs and bar stools. Blanchard Springs Caverns (shown at right) features a vast amount of dripstone.

with meringue. We went for the restaurant’s signature Ozark Mountain pie, a rich concoction of chocolate chips, coconut and walnuts. Let’s just say we didn’t leave this place on the Square even remotely hungry.

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

PHOTOS COURTESY ARKANSAS DEPARTMENT OF PARKS AND TOURISM

5 offers a range of goods from days gone by. Among the popular offerings are locally produced honey and old-fashioned hard candies, such as sassafras, horehound, licorice and peppermint.

options. We couldn’t resist trying the “Hawg Wild” special – chocolate-dipped bacon. It had that sweet-and-salty thing going on and was certainly worth sampling.

OZARK KNIVES AND CARDS Abe Lincoln has run this shop on Main Street for 13 years and figures he offers something for both fathers and sons. Hunting knives, pocket knives, fishing knives – he’s got ’em all in a range of shapes and sizes. He also stocks plenty of baseball, football and other collectible cards, so if you find yourself in need of more football cards of such former Razorback stars as Ryan Mallett and Peyton Hillis, this is the place. Oh, and there are some swell swords as well.

MIKEY’S SMOKED MEATS AND DELI This friendly little joint outside town on Highway 5 offers up barbecue from a real wood-burning pit, great smoked turkey, ham, cheeses and way-too-tempting pies. We didn’t try it, but apparently the smoked beef brisket is mighty popular. We can, however, attest to great sandwiches and hearty breakfasts.

STONEBROOK FUDGE FACTORY & CANDY COMPANY At this candy store, another shop on the Main Street Square, you can find around 60 varieties of fudge made with real cream and butter. And there are tasty sugar-free

It seems like there is always music going in Mountain View, including at the Ozark Folk Center (top photo) and a variety of other locales.

PLACES TO STAY Thanks to its tourism-based economy, Mountain View – known as the Folk Music Capital of the World – is home to a number of bed-and-breakfast inns, hotels and nearby cabins. Check your favorite travel website for options and information.

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Renderings of the Pendergraft What We Stand For: The Why Marshals Theater (top) and the Sam M. Sicard Hall of Honor that are planned for the U.S. Marshals Museum at Fort Smith. PHOTOS COURTESY OF U.S. MARSHALS MUSEUM

Pendergraft Gift Helps Fund Marshals Museum Theater By Michael Tilley

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

he family of the late Ross Pendergraft of Fort Smith has donated $1 million to the U.S. Marshals Museum to help fund the Why Marshals Theater in the museum that is to be built in downtown Fort Smith on the banks of the Arkansas River. Museum officials said the theater will be an orientation to the U.S. Marshals Service and the U.S. Marshals Museum with a video on three large screens that will explain the history and highlights of the Marshals Service and its connection to Fort Smith. “We commend the entire Fort Smith community for their enthusiasm and support of the U.S. Marshals Museum,” Neal Pendergraft, son of Mrs. Donnie Pendergraft, said. “We know this project would be so important to Ross. We hope our gift will encourage others to contribute and make this museum a reality.” Ross Pendergraft retired from Donrey Media Group (former owner of the Times Record in Fort Smith) in 1994 as the executive vice president and chief operating officer of the national media company. He began his career with Donald Reynolds as an advertising executive in 1948 with the Times Record in Fort Smith. He died in May 1998 at the age of 72. “Words cannot express our gratitude for the Pendergraft family and their generous support of the U.S. Marshals Museum,” Jim Dunn, president and CEO of the museum, said. “We’re honored to name the Why Marshals Theater in honor of Mr. Ross Pendergraft, and we look forward to carrying on his legacy of giving back to the Fort Smith community.” The Pendergraft gift is the second familyrelated gift this year. In March, First Bank Corp. added $500,000 to its previous $500,000 donation toward a goal to raise another $1 million for the museum to honor the late Sam M. Sicard, who was president and CEO of First Bank Corp. The Hall of Honor at the museum will be named for Sicard. And the Hille Foundation of Tulsa recently pledged a $100,000 grant, reiterating that the museum’s support extends beyond Arkansas. “The U.S Marshals Museum is proud of the strong support we’ve received from

Arkansas, Oklahoma and across the nation,” Dunn said. “We hope to educate, inspire and entertain visitors with state-of-the-art exhibits and programming about our nation’s first federal law enforcement agency and pay tribute to those who have served.” EASEMENT ISSUE The 50,000-square-foot museum will contain three primary exhibition galleries, a temporary exhibits gallery, a Hall of Honor, and a National Learning Center to offer

“We hope to educate, inspire and entertain visitors with state-of-the-art exhibits and programming about our nation’s first federal law enforcement agency and pay tribute to those who have served.” – Jim Dunn Museum CEO

programs for students, adults, and families. The three galleries are: “Marshals Today,” an overview of the role of U.S. Marshals in contemporary society; “A Changing Nation,” telling key stories of U.S. Marshals history; and “Frontier Marshals,” bringing law to the ever-changing frontier. Including the Pendergraft gift, the museum reports that it has $26.236 million

“committed,” with $22.66 million available after deducting prepaid construction costs and other expenses. The museum’s numbers show it needs $32.869 million to complete the facility, based on a total campaign cost of $55.529 million. The $55.529 million includes facility construction, $32.752 million; exhibition costs, $12.3 million; endowment creation, $4 million; and estimated operations funds, $3.5 million. Museum officials have said they hoped to open the museum by 2017, but an uncertain easement may cause a delay. The property is subject to a U.S. Army Corps of Engineers navigation easement for channel alignment. Because it was acquired under a federal Declaration of Taking, the easement was not originally recorded at the county courthouse when the Arkansas River navigation system was built. The museum is working with the Corps on a plan to allow construction on the site. On Sept. 14, the Robbie Westphal family completed the transfer of 16.3 acres of Fort Smith riverfront property to the museum. The property is nearly 10 acres more than the original riverfront tract that was donated several years ago to better accommodate parking and additional amenities at the museum. This is a big step forward because it allows the museum to continue talks with the U.S. Army Corps of Engineers and begin discussions with museum architects. COIN SALES Commemorative coin sales will continue until the end of 2016. To date, surcharges have reached $2.8 million. The museum expects to receive up to $4 million in surcharges. (The maximum amount allowed by law is $5 million.) The silver proof coins (“Wanted in Fort Smith”) are now available at the Zero Street Walmart in Fort Smith and Liberty Drive Walmart in Greenwood and a Christmas coin sale campaign is planned across the River Valley and northwest Arkansas. The U.S. Marshals Museum will hold “An Evening with George Washington,” its holiday event, on Dec. 7 at the Bonneville House in Fort Smith. Details are available at usmarshalsmuseum.org. www.talkbusiness.net

Cover Story

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Back from a trade mission to Cuba, Gov. Hutchinson and state business leaders are excited about the prospects for dealing with the island nation. By Talk Business & Politics Staff

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rkansas Gov. Asa Hutchinson (R) believes his recent trade mission to Cuba will open doors for “future and near-term trade.” Arkansas Farm Bureau President Randy Veach sees an “opportunity” that would benefit the state and the tiny island nation. And U.S. Rep. Rick Crawford, R-Jonesboro, has introduced a bill to modify the federal prohibition on U.S. assistance and financing for certain exports to Cuba. Suddenly, it seems, Cuba is on the minds of a lot of Arkansans. Ever since President Obama re-established diplomatic relations earlier this year with the country that is 90 miles of water away from the U.S., state officials have wondered just what the possibilities are and what kind of impact the move may have on the Natural State and its business community. In relaying observations on the trip, Hutchinson sounded optimistic but also urged caution on moving forward. “Everybody told me it would be a throwback to the ’50s and it was. I was thinking of that in terms of their development and their

old cars,” Hutchinson said. “But actually it was a throwback to the ’50s in terms of the dialogue with government officials. “They are still in their mind-set – the senior officials – back in the revolution, back in the centralized government,” the governor said. “That really struck me that while we need to make progress on loosening the economic sanctions and the embargo, they also need to make improvements in working with the private sector that will encourage investment there.” WHAT’S NEXT   Hutchinson said there should be no urgency in rushing trade in order to ensure Cuba lays a foundation for more capitalistic reforms. He said loosening travel restrictions and increasing credit are the first two steps to making that happen. He also said Cuba could prove its intentions through some early smaller trade deals that may result from the trip. “They need to have a better working relationship with the private sector, and we need

to see the reality on the ground as to what they intend to do and how they’re going to treat private investment. Let’s open it up for the agricultural sales and we’re going to learn a lot,” Hutchinson said. As for what’s next, Hutchinson said there will be follow-up meetings between Cuban officials, the Arkansas Economic Development Commission and the Arkansas Agriculture Department. He also plans to lobby Arkansas’ Congressional delegation for any federal laws or rule changes that could help open trade doors. Hutchinson said he’s excited about the momentum that has taken place since President Obama first announced the U.S. planned to normalize relations with the Communist island country. “This just reflects the historic time of re-engagement after literally 55 years of broken diplomatic relations,” Hutchinson said. Lisenne Rockefeller, businesswoman, philanthropist and wife of the late former Lt. Gov. Win Rockefeller, joined the Arkansas delegation making the trip to Cuba. She also

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Cover Story: Cuba Opportunities urged caution on business investment until political changes occur. “The Cubans are eager to reestablish trade with the U.S.,” she said. “However, I can’t imagine that many American corporations are going to be willing to make substantial investment in a country that affords virtually no legal protections for foreign investors. While there will always be people willing to gamble, until the Cubans have a better understanding of economics and accept the fact that both sides have responsibilities in a business deal, I doubt if many corporations will be willing to take that kind of risk.” Rockefeller’s farming interests were the primary catalyst for her participation in

shut out of Cuba for more than a half-century, Arkansas’ poultry industry has exported broiler meat to the nation for more than a decade. In fact, frozen chicken has been the top grossing U.S. export to Cuba since 2009, according to the U.S.-Cuba Trade and Economic Council. U.S. poultry companies including Tyson Foods have sold $63.284 million of frozen chicken to Cuba through July of this year, according to the council records. Chicken comprises 51% of the total exports to Cuba. That said, chicken exports to Cuba are down this year due to an Avian Influenza trade ban since August. U.S. officials recently confirmed that Cuba had purchased at least SHUTTERSTOCK

the trade trip. Winrock Farms, which raises high-quality Santa Gertrudis and Red Angus cattle, could benefit from a more stable and open trade policy with Cuba. “The people are lovely. Cuba has a flourishing and well-supported arts community and a lively night life. They admire Americans and they’re enthusiastic about reconnecting with America. They blame all of Cuba’s ills on the American ‘blockade,’ as they call the embargo,” she observed. “I believe the Cuban people are eager to move into the 21st century. Unfortunately, their government isn’t willing to relinquish the control that stymies innovation.” GROWTH AREA FOR POULTRY  While most U.S. businesses have been

30 million pounds of U.S. chicken that were to be delivered sometime in October. Cuba is viewed as a growth area for U.S. chicken exports. That’s why officials from Springdale-based Tyson Foods and Siloam Springs-based Simmons Foods were part of the recent trade delegation visiting Cuba. “The Cubans can’t raise enough food to feed their people, and there is an opportunity for Arkansas to help in so many ways,” Veach said after taking part in the trip. “Tyson and Simmons Foods were both present in meetings with Cuban Alimport, the import-export company run by the Cuban government,” Veach said. “We also met with animal science professors and discussed their poultry research, dairy research, duck, geese and pork research.

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

Then we met with professors doing research on rice, feed grains and soybeans. There is a great opportunity to exchange ideas on agricultural research.” Dr. H.L. Goodwin, professor and agri economist at the University of Arkansas, said Cuba holds sizable potential for poultry exports from U.S. processors. He said, like most poultry exports, Cuba prefers dark meat and having another dark meat market so close to the U.S. could yield more sales for local companies if the required cash-only terms that now exist can be reviewed. He said if the cash-only terms required by the U.S. could be transformed into a credit program that likely would improve sales of U.S. poultry and other food commodities. Todd Menotti, senior director for international corporate affairs and a former U.S. Senate staffer with expertise in international trade issues, didn’t make this trip to Cuba, but he has traveled there before. The Pine Bluff native said that the cash-only restriction is a huge hindrance to developing more sales when countries like Brazil can extend credit to Cuba. The cash-only terms put U.S. and Arkansas companies at an unfair trade advantage. “We’ve been selling to Cuba, off and on, on the poultry side for a number of years,” he said. “We support making the financing more traditional. We’ve navigated barriers, but you want a market that works like any other export market.” AGRICULTURAL EXPORTS ACT  The proposed Cuba Agricultural Exports Act – sponsored by U.S. Rep. Crawford along with House Agriculture Committee Chairman Michael Conaway, R-Texas, and U.S. Rep. Ted Poe, R-Texas – would provide new economic opportunities and jobs for America’s agriculture industry by providing access to a market that is valued at over $1 billion per year, Crawford said. The Cuba Agricultural Exports Act would repeal restrictions on export financing and give producers access to Department of Agriculture marketing programs that help the U.S. compete in foreign markets. The bill would also enable limited American investment in Cuban agribusinesses, as long as stateside regulators certify the entity is privately-owned and not controlled by the

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Cover Story: Cuba Opportunities government of Cuba, or its agents. Crawford says the bill would strike the right balance in going to a new market as well as protecting freedoms. “While the administration has called on Congress to repeal the embargo entirely, I think the correct approach is to make cautious and incremental changes to current Cuba policies in ways that benefit the United States,” the congressman said. “Not only is it estimated that Cuba

imports around 80% of its food supply, but the U.S. also enjoys an inherent advantage due to our close geographic proximity and state of the art production and food distribution infrastructure,” Crawford continued. “I believe that agriculture trading partnerships with Cuba will help build a foundation of goodwill and cooperation that will open the door to long-sought reforms in the same the way that American influence has brought reform to other Communist states.”

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PROSPECTS FOR RICE AND MORE Arkansas Agriculture Secretary Wes Ward said the state’s rice industry may stand to benefit the most from renewed relations with Cuba. By some estimates, Cubans consume as much as 700,000 tons of rice a year. Arkansas produces about half of the total U.S. rice harvest – more than 246 million bushels. “If those financing restrictions are lifted or eased some, that could be about a $36 million economic impact for Arkansas agriculture specifically, and about $29 to $30 million of that could be for the Arkansas rice industry. They [Cubans] consume a lot of rice, they consume a lot of poultry. Those are two things Arkansas does pretty well,” Ward said. Dan Hendrix, CEO of the World Trade Center Arkansas located in Rogers, spearheaded the trade trip to the island nation. Like others, Hendrix said the near-term possibilities really depend on political change and loosening of credit requirements. But he also sees other prospects for Arkansas trade with Cuba beyond rice and poultry. “The future for Arkansas products range from the obvious rice and poultry, but also steel, lumber, pulp wood, bio-pharma diagnostics and glass manufacturing. They have seven paper mills and the raw product for making paper is sugar cane - they would like to use pulpwood,” he said. Hendrix also noted that there could be opportunities for Arkansas firms in hospitality, construction and entrepreneurship. Additionally, he said, “Higher education will play a significant role in the future with student and faculty exchanges and certainly agricultural research and development as there are more land owners and farmers.” He’s already organizing another trade trip for early next year. “We have already begun a process to facilitate another mission to Havana the first quarter of 2016 and have several who traveled with us wishing to return for follow-up and others in different sectors wanting to go,” Hendrix said. “There have already been some follow-up discussions with our delegation and their Cuban counterparts, and we expect these to continue.”

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Richard Davies, who began working at what is now the Department of Parks and Tourism in 1973, is retiring. Gov. Asa Hutchinson says Davies “defines parks and tourism in Arkansas.”

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

Changing of the Guard Arkansas Department of Parks and Tourism prepares for the retirement of longtime director Richard Davies and other key personnel. By Kerri Jackson Case

ome the first of January, one of the most stable departments of Arkansas government will have just undergone a massive change. Seven people, including two of the top three positions and representing roughly 275 years’ experience, are retiring from the Arkansas Department of Parks and Tourism. Richard Davies, director, began in 1973 as an assistant to Bill Henderson, who was the first director of what is now the Department of Parks and Tourism. Under Gov. Dale Bumpers, the state was reorganized from 240 state agencies into 15 departments. Greg Butts, State Parks director, came later that year when he was recruited to the “new modern era” of state parks in Arkansas. On Oct. 22, Gov. Asa Hutchinson appointed a member of his communications staff, Kane Webb, as the new executive director of the Arkansas Department of Parks and Tourism. The Parks, Recreation and Travel Commission had voted to nominate Webb, a former journalist, for the position. Gloria Robbins, executive assistant to Davies, and Kerry Kraus, travel writer, left jobs at JCPenney to work at the department a few years later. Kraus jokes about how excited she was about the pay raise she received with the state job. She made $3,000 per year in 1976. Joan Ellison, state parks public information officer, began as a boathouse manager in the summer of 1973. Chuck Haralson has been taking photos since 1977. Kay Killgore, human resources manager, joined the team in 1980. The group is tight knit and familial. Many are emotional about their departure, having dedicated their entire careers to the mission of parks and tourism. They believe they have made a difference for families and tourismrelated businesses in Arkansas. It’s not a hard case to make. When most of them started, tourism had little economic impact in the state, and state parks were literally

falling down around them. Today tourism and hospitality are the second largest industry in Arkansas behind agriculture. It’s a sector that continues to show growth. THE BOSS MAN  Davies is a man who leans a lot. He leans forward in his chair when he’s thinking. He leans back in his chair when he’s listening and taking in information. He leans sideways when he’s telling a tall tale. And Davies is a man who loves to weave a good story. He obviously enjoys delivering a perfectly timed punch line. His colleagues say it’s the willingness to bend, to listen and then to deliver a decision that’s made him successful under five governors and engendered loyalty from so many employees. It was his ability to tell a good story that first landed him at the department. “Bill Henderson [former director] wanted someone who could tell people what the department was doing,” Davies said. “We had travel writers who told the story of the industry, but he wanted someone who would tell the governor and legislature what we were doing. He knew I had a journalism degree, so he hired me to help him out.” Over time, Davies job became more administrative. He was assigned in 1976 to collect the resumes of those applying for the parks director job. “I looked at those resumes and thought I was at least as qualified as those guys, so I applied too.” Davies was promoted to parks director in 1976 by then-Gov. David Pryor, and was appointed by then-Gov. Bill Clinton to the director position in 1990. He’s held the job under administrations of both parties and has made his name synonymous with parks and tourism in the Natural State. “Richard Davies defines parks and tourism in Arkansas,” Hutchinson said. “He was there when our state moved to a new level of promoting our parks and tourism, and he has guided the agency, promoted it and

made it into one of the great examples for parks and tourism in the country.” Gov. Mike Beebe agreed. “Not only has ‘Mr. Parks and Tourism’ been essential to promoting travel and tourism in our state for the past 40 years, he’s been an ongoing source of continuity and inspiration during a distinguished career in which he served five different governors and was the key player in ushering in the modern era of Arkansas State Parks history,” Beebe said. “He’s comfortable in any setting and widely admired nationally and regionally by his peers. He has spent a lifetime navigating the many changing ways to share the connections that exist among the natural, cultural and historical resources of our state parks and to bring the wonders of our state to visitors and Arkansans alike.” IMPORTANCE OF TEAMWORK It’s almost impossible to find anyone unhappy with the Davies era in parks and tourism. Even longtime State Parks, Recreation and Travel Commissioner Bill Barnes, who openly admits the two couldn’t stand each other when they were young, has grown to respect Davies’ work and forged a friendship with him. “When I first met him, I was a struggling broke resort owner, trying to make a living,” said Barnes, who owns Mountain Harbor Resort. “I thought he was an obnoxious bureaucrat.” Davies says there was no love lost between them. “I thought he was an obnoxious resort owner who didn’t get it. But I got good advice. Shelby Woods told me I had to figure out a way to get along with everyone in hospitality, or none of this was ever gonna work. And after 42 years in this game, I can honestly say, that if you sit down and talk about it long enough, you can come to common ground. That’s what we’ve tried to do in the department while I’ve been here.” www.talkbusiness.net

Industry: Changing of the Guard Barnes agreed. “Through the publicprivate partnerships in the department,” he said, “we’ve grown tourism into the state’s second largest sustainable industry.” Woods, chairman emeritus of CJRW, the ad agency of record for the Department of Parks and Tourism, helped build many of those public-private partnerships. “The state didn’t have enough money to promote tourism properly, and the private operators weren’t getting anywhere on their own, so we figured out if we all worked together, we could get a lot farther. We’ve been able to grow tourism in this state because we were willing to put aside personal differences for the good of everyone,” Woods said. “Anyone can have detractors,” he continued. “But anyone you talk to will tell you that Richard Davies made the decisions he believed were the best for the state. That was his only criteria, what was best for Arkansas.” Commissioner Jim Shamburger, owner of the Best Western Winners Circle Inn in Hot

Springs, believes the industry growth under Davies’ tenure is because he is not afraid of change. He said whoever replaces him will walk into a department that’s constantly monitoring and adapting to a rapidly evolving industry. “It’s a well-oiled, well-run organization. His biggest strength has always been that he can cut through the crap and figure out exactly what the real problem is in any situation, and then fix it,” Shamburger said. It’s not hard to see the retiring director is beloved. At a recent commission meeting, Davies requested certificates of appreciation from the commission for the other six retirees. The commission granted them, and gave Davies and his long-serving team a standing ovation. STATE PARKS  If Davies’ legacy must be boiled down, the eighth-cent sales tax or “conservation tax” will be a highlight. Gov. Mike Huckabee was instrumental in getting it passed at Davies’ request. A 2% tourism tax was passed

before Davies was director, but under his leadership, collections have grown exponentially to promote Arkansas to out-of-state travelers. The conservation tax gave State Parks something it had never had: a predictable source of income for upkeep and repairs. Until that point, all funding was subject to the whim of the legislature, which made planning next to impossible. Parks employees tell stories of taking siding off the back of buildings to nail to the front so visitors couldn’t see the neglected shape of the structures. A known revenue stream has enabled the parks system to make much-needed repairs and plan for future upgrades and renovations. “People don’t realize how much thought, preparation and background work it takes to make it look easy to work in a State Park,” Davies said. Gregg Butts, who took over the parks director position when Davies was promoted, said the conservation tax enabled them to carry out the unspoken mission of State

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Parks, “to hand off these special places as good or better than we found them.” He said it will be hard in some ways to leave State Parks after 42 years, but he’s also looking forward to getting to be just a guest in the parks now. He has any number of camping and hiking trips planned with his wife, who also retired recently. He speaks easily of the “forever business” that State Parks promotes. He hopes the culture of calculated risks will continue. “If you’re not willing to make any mistakes, you’re going backwards. I hope they will continue to try new things, but at the same time, I hope they fully understand what all goes into making these parks work and trust the really good people at the parks to do their jobs well,” Butts said. SUCCESSION PLANNING  Joe David Rice is the director of tourism and the last man standing in leadership. He holds the third of the top three positions in the department, and still has two years before he retires. Watching this level of

institutional knowledge walk out the door is “nerve wracking,” he said. “Richard is the heart and soul of this organization. But all of these people understand the mission of this place. It’s hard to see them go.” Rice believes the corporate culture under Davies was simply the “Do Right Rule.” Whenever natural disaster or personal tragedy hit a park or person, Davies led the charge to pitch in and help. “There is no job too small for any of us if it needed to get done,” Rice said. Part of the timing for such a major departure all at once is happenstance. All seven began working at the department in the 1970s. It’s simply time. The other part is a peculiar mechanism in the state employees retirement system called “the drop.” A state employee with 30 or more years of service can declare their intent to retire. For the next seven years, the retirement plan will drop 75% of their salary into their pension on top of the employees’ contributions. It gives new retirees a nice bump to their nest egg right before they

leave. The system was designed to give older employees with higher salaries an incentive to make way for younger employees with typically lower ones, while also leaving time for succession planning. Several years ago, during budget crunches around the country, many legislatures began to talk about whether state governments could continue to afford a drop system. Some states did away with it all together. Not wanting to lose out on a substantial retirement contribution, the eligible seven entered the drop. Once declared, there’s no exit. A retirement date was set for each. The countdown began. The time is up. In naming Webb to replace Davies, Hutchinson said: “I’ve known Kane for almost 20 years, and I’ve gotten to know him especially well since he joined our team. He has a deep and abiding passion for Arkansas. He’s written about more people, places and events in this state than I can count, and he understands how important parks and tourism are to Arkansans and its economic importance to our state.”

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Industry PHOTO: SHUTTERSTOCK

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

Reserve’s Beige Book Points To Growth at ‘Modest’ Pace By Wesley Brown

conomic growth experienced by Arkansas and the rest of the nation in the second quarter has slowed as the post-recession recovery is now being characterized as a “modest expansion,” according to the Beige Book report released Oct. 14 highlighting economic activity in all 12 Federal Reserve districts. The Beige Book report for St. Louis’ Eighth District, which includes Arkansas and portions of Illinois, Indiana, Kentucky, Mississippi, the eastern half of Missouri and western Tennessee, points to economic growth at a modest pace from mid-August through early October across the region’s highly diversified geographical footprint. DIFFICULTY FINDING WORKERS The report provides anecdotal information of key economic activity in different sectors of the sprawling district that is led by St. Louis Fed chief James Bullard. Although there was not much specific news on the Arkansas economy, the report stated that the entire region is struggling with finding skilled and qualified workers during a period of low unemployment. “Manufacturing contacts in rural areas throughout the district continue to report difficulty finding and retaining qualified employees,” the St. Louis district report said. “In particular, contacts in the rapidly growing furniture manufacturing sector in northern Mississippi have struggled to find enough employees with cutting and sewing skills. Contacts in trucking and other modes of transportation continue to report a shortage of qualified operators and technicians.” According to the final revision of the nation’s real gross domestic product, or GDP, in late September, the U.S. economy advanced at a stronger-than-expected annual rate of 3.9% in the second quarter of 2015. Below are the highlights of key sectors from the St. Louis District.

CONSUMER SPENDING Anecdotal evidence from local contacts indicates that the retail sector experienced modest growth since the previous report. The majority of contacts indicated that sales met or exceeded expectations. However, some retailers noted a slight slowdown in activity during the final weeks of summer. Reports from auto dealers were mixed. Multiple contacts reported increased foot traffic and sales in recent weeks compared

Overall banking conditions remain strong in the district. with the previous quarter. Several others noted that sales, services and repairs have recently decreased but expect activity to pick up for the remainder of the year. Contacts continued to indicate a shift in demand toward trucks and SUVs and away from cars as the result of low gas prices. REAL ESTATE AND CONSTRUCTION Residential real estate activity continued to expand, but at a slower pace than in the previous report. That said, contacts expect a steady improvement through year-end.

Compared with the same period in 2014, August home sales increased on a yearover-year basis: 2% in Little Rock, 1% in Louisville, 7% in Memphis and 2% in St. Louis. Residential construction increased in the majority of the district’s metro areas on a year-over-year basis. Compared with the same period in 2014, August single-family building permits increased 6% in Little Rock, 8% in Memphis and 20% in St. Louis. Louisville fell by 2%. BANKING AND FINANCE Overall banking conditions remain strong in the district. Loan growth slowed somewhat relative to prior quarters but remains in positive territory and above the national growth rate. Total loans outstanding at a sample of about 80 small and mid-sized district banks increased 10% in September from the same time last year. Real estate lending increased 9% over the reference period. Commercial and industrial loans increased 10% over the period, and loans to individuals increased 7%. Lending growth in each of these categories was slower in September than earlier this year, but growth rates remain above historical levels. AGRICULTURE AND NATURAL RESOURCES Contacts expect district row crop yields to be about 10% below 2014 levels as the result of extensive rainfall. Many contacts believe crops with earlier planting seasons, such as corn, will see a yield decline of up to 30% in the most rain-ridden areas. Contacts noted that with the recent decline in crop prices and stickiness of some input prices, production levels will not be high enough to prevent a decline in net farm income. While most livestock-related prices are also trending downward, the recent bird flu outbreak has had a mixed impact on poultry prices. www.talkbusiness.net

Industry PHOTO: SHUTTERSTOCK

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

Report: Keep (But Change) State’s Private Option Plan By Steve Brawner

consultant hired by legislators says Arkansas’ Medicaid program is “on an unsustainable path” with higher costs than other states. Meanwhile, the state’s Medicaid and private option rolls include nearly 43,000 Medicaid and private option beneficiaries who may not live in Arkansas, and almost 500 who are no longer alive. The Stephen Group did not call for ending the private option, however. Instead, it recommended options meant to make it a more transitional program. Meanwhile, Medicaid should be retooled to be less costly while providing better outcomes. The recommendations were part of a 350page report presented to the Health Reform Legislative Task Force on Oct. 7, two days after it was made available to legislators. The task force is considering changes to Medicaid and the private option. Medicaid serves poor, aged, and disabled individuals and is federally funded but state run. The private option serves individuals earning up to 138% of the federal poverty level. The task force was created this year as part of a compromise that funded the controversial private option through 2016. It will make its recommendations by the end of the year. The report said the private option is bringing to the state $1 billion a year in federal funds and will bring in $9 billion in federal match payments from 2017-21. It has helped Arkansas reduce its uninsured rate. Without it, hospitals would provide more than $1 billion more in uncompensated care for uninsured patients from 2017-21. Hypothetically, ending the private option and returning Medicaid to its pre-private option status would have a $438 million effect on the state budget from 2017-21. A PAIR OF OPTIONS The Stephen Group offered two options meant to make the private option more

transitional for recipients on their way to greater independence. Under one model, which lead consultant John Stephen called the “transitional health independence program,” or T-HIP, the newly formed program would mandate work referrals for recipients and provide support for employers that hire beneficiaries. Beneficiaries with more assets would pay more, and those who don’t meet wellness and work search requirements would pay co-payments and premiums. Those who don’t meet program guidelines or pay their premiums would be locked out of the program. Stephen said its more creative model, “WorkFirst,” may have to wait until the next presidential administration. It would include many of those same ideas but add a 20-hour work requirement modeled after the current Temporary Assistance for Needy Families program. Unlike the current arrangement, recipients earning between 50-74% of the federal poverty line would pay a $5 monthly premium while those earning 75-99% would pay $10 monthly. The state could consider a lifetime limit on benefits, as it has with TANF. The Stephen Group reported that the Medicaid system is paying for benefits for 42,891 beneficiaries whose best address according to a LexisNexis search is out of state. That’s almost 8% of the 549,906 people in the possible pool. According to the report, 22,781 traditional Medicaid recipients and 20,110 private option beneficiaries have best addresses that are out of state. Among traditional Medicaid recipients, 4,137 have best addresses in Texas, and 1,896 have best addresses in California. Among private option recipients, 3,750 have Texas addresses while 1,324 have California addresses.

Meanwhile, 3,543 traditional Medicaid recipients and 3,210 private option recipients have no record of living in Arkansas. Stephen told legislators that it’s possible some enrollees whose addresses are out of state actually do live in Arkansas. KING: ARKANSANS DECEIVED The Stephen Group found 367 traditional Medicaid recipients who were deceased prior to being authorized – 261 of them for more than two years. Moreover, 128 private option recipients were deceased prior to being authorized, including 82 who had been dead for more than two years. A LexisNexis search found 12,622 participants with property values exceeding $100,000. One Medicaid recipient had purchased a $419,000 property in Florida, while another had purchased a $749,900 property in New Jersey. The consultants also discovered that nearly 43,000 Medicaid or private option recipients had current out-of-state addresses. Moreover, a LexisNexis search found 264,177 addresses that were newer than the ones in the state’s eligibility system. State Sen. Bryan King, R-Green Forest, a private option opponent, said Arkansans have been deceived about the program’s problems. “They put out statistics of every county’s enrollees in the private option. Have you seen one report that they’ve produced that shows 1,300 people in California?” he told reporters. He later added, “I mean, how innovative is it to sign dead people up on free health care?” Amy Webb, spokesperson for the state Department of Human Services, said the department is prohibited by the federal Centers for Medicare and Medicaid Services from conducting an income verification more than once a year. Asked why the agency didn’t use LexisNexis like The www.talkbusiness.net

Industry: Private Option Stephen Group, she said DHS had not done so because of budget constraints. DHS is in the middle of a problematic $200 million update of its eligibility system. “We’ve been very forthright,” she said. “We’ve provided a great deal of information to both the Legislature and The Stephen Group. We want to make sure that people have all the information about this program. We want to make sure they have everything they need to make good and smart decisions about Medicaid. We want the program to be run well, to be run efficiently, to have strong program integrity. We want the right people to be getting the right services. We want only people who are eligible to be getting services.” INTEGRITY HUB IDEA To better prevent abuse and fraud, The Stephen Group recommended the state create an Enterprise Benefit Integrity Hub, probably to be housed in the Department of Finance and Administration, that could monitor the eligibility of all individuals who

are seeking state services. Stephen said private option recipients as a rule are younger and healthier than other participants in the state’s health insurance marketplace, which serves individuals and small businesses. That makes them a cheaper population to insure. However, they utilize emergency room services at higher rates than traditional Medicaid recipients and lack an understanding of the system. The system does not provide incentives for beneficiaries to use more appropriate care. Forty percent have no income at all, leading King to point out to a reporter that the system was originally supposed to serve the working poor. Stephen said the state’s health independence accounts, which are designed to encourage private option beneficiaries to save money for their own health-care needs, have not shown much success. So far, 45,839 cards have been issued but only 2,500 individuals are contributing monthly. Medicaid itself is on an unsustainable path, Stephen said. Conservatively assum-

Matthew C. Glass, President & CEO 870-732-0707

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

ing growth of 5% over each of the next five years, Medicaid’s cost to the state budget will grow by $500 million by 2021 – from $1.548 billion in 2015 to $2.074 billion in 2021. Stephen said Arkansas has not implemented best practices that other states have used to reduce costs, such as better use of community care versus institutional care and nursing homes. Stephen said DHS’ organization lacks integration and collaboration. The procurement timeline is lengthy, and so is the legislative review process. The state’s Office of Medicaid Inspector General does not have the tools it needs to investigate fraud and abuse, but Gov. Hutchinson devoted new resources to the effort in a mid-October press conference. FOCUS ON IMPROVING VALUE Stephen recommended three options: one that expands the state’s current cost-saving initiatives; one where private insurance carriers develop programs for high-cost populations; and managed care, where a private company would manage Medicaid programs with the state setting profit margins and incentives. The managed care model spread across all populations would save the state $2.4 billion from 2017-21, he said. Nearby states Tennessee, Mississippi, Texas and Kansas have all used managed care systems to save on costs. Texas has saved $3.8 billion since fiscal year 2010. Stephen praised some of Arkansas’ efforts to reform its medical payment systems, such as its patient-centered medical home model where care is coordinated by a primary care physician, and its episodes of care model, which sets a target for the costs of a certain medical event and then rewards providers who stay under that cost. However, he said the return on investment for the episodes of care model has been unclear. He said the state needs to focus on improving value, which would include reducing cost while improving health outcomes. He recommended a cultural shift that would move from paying for claims to paying for performance. A worthy goal would be making Arkansas’ health-care system the “best in the SEC,” he said.

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Insights PHOTO COURTESY OF SOUTHERN ARKANSAS UNIVERSITY

Dr. Mahbub Ahmed (left) with SAU engineering students.

The Fabric of a Life: Crystal Bridges Museum Acquires ‘Maya’s Quilt’ PHOTO COURTESY OF CRYSTAL BRIDGES MUSEUM OF AMERICAN ART AND SWANN AUCTION GALLERIES

More Muleriders – SAU Sets Numerous Enrollment Records For the third straight year – and in dramatic fashion – Southern Arkansas University’s 11th-class-day numbers reported to the state Department of Higher Education included several student enrollment records. “It is a great time to be at SAU! You can feel the excitement and energy on campus,” Dr. Trey Berry, SAU’s new president, said. “Students are being attracted to SAU because of our rich and often unique academic programs, our affordability and our increasing reputation as a caring institution.” Here are some of the records by the numbers.

4,138 1,704 1,015 798 717 178 16.7%

Total number of students College of Science and Engineering enrollment School of Graduate Studies enrollment Freshmen class International student population Honors College Increase in the total student count from last year’s record fall enrollment.

Crystal Bridges Museum of American Art recently acquired “Maya’s Quilt of Life,” 1989, (acrylic on canvas and painted, dyed and pieced fabrics) by Faith Ringgold, from the art collection of the late author and activist Maya Angelou. The work hung in Angelou’s “Maya’s Quilt of Life” is now part home and was commissioned of the Crystal Bridges collection. by Oprah Winfrey for Angelou’s 61st birthday. According to the museum, Ringgold is well-known for her painted story quilts, “which unite a tradition of representational painting with the rich history of quilting in the African-American community.” In the coming months, “Maya’s Quilt of Life” will debut in the 1940s to Now Gallery. “We recently welcomed our two-millionth visitor to the museum and as we reflect on this milestone, we are developing ways to engage audiences and expand the American story within our collection,” Crystal Bridges Director of Curatorial Affairs Margi Conrads said. “This work celebrates the voice of one of the greatest storytellers of the 20th century and we are honored to share this American treasure on a broader scale. We also think the work will resonate deeply with our local audiences because of Angelou’s Arkansas roots and the culture of the Ozarks, which boasts a long tradition of quilt-making.”

Hutchinson Creates Military Affairs Panel

Gov. Asa Hutchinson has formed a new statewide initiative to support and promote the state’s military installations and related economic development interests. The Governor’s Military Affairs Committee will bring together public and private leaders around the state who will prepare and advocate for Arkansas on both a national and state level to accomplish short- and long-term economic objectives for our military installations. The panel’s objectives include: grow and protect Arkansas’ military installations, utilization and missions; advocate at state and federal levels on behalf of state and local economic development interests; position Arkansas as a priority state in the national defense plan; and appoint a public-private partnership steering committee to accomplish short-term and organizational goals.

Insights is compiled by Talk Business & Politics Editor Bill Paddack. Possible items for inclusion can be sent to him at wbp17@comcast.net.

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

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What does living fearless mean? As the father of a high school football player, I know the thrill – and the threat – every time my son takes the field. I sleep better at night knowing the company I work for has funded a program to teach athletic trainers from high schools all over Arkansas how to help prevent and base test for sports concussions. Arkansas Blue Cross and Blue Shield cares about the health and safety of Arkansas’ children. That helps us live fearless.

I AM THE

SHIELD Jerry Duncan Arkansas Blue Cross and Blue Shield employee

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

MPI 3740

PHOTO COURTESY OF ARKANSAS STATE CHAMBER/AIA

Insights

UAFS Opens New Home For the Arts

PHOTO COURTESY OF UAFS

Designed by WER Architects of Little Rock, the Windgate Art and Design building at UAFS provides students with state-of-the-art facilities.

The University of Arkansas at Fort Smith has opened a new visual arts facility. Windgate Art and Design, a privately funded 58,000-square-foot building located at the corner of Kinkead Avenue and Waldron Road, features state-of-the-art facilities for students, including a film theater, numerous galleries to display professional and student artwork, and a professional-quality video and photography studio. Dr. Paul B. Beran, UAFS chancellor, said the building is a centerpiece of the UAFS campus and unifies visual art educational programs previously spread out in several buildings across campus. “The arts are an integral component of any educational curriculum – they grow the students’ critical and creative thinking skills, tools necessary for success in our ever-changing global workplace,” he said. “This new space gives students a place to experiment via hands-on learning with the form and substance of creativity.” The building was designed by WER Architects of Little Rock and constructed by CDI Contractors of Little Rock and Fayetteville.

STARTUP COSTS:

LR Rocking A No. 7 Rating Coming in at No. 7, Little Rock has landed among the top 10 U.S. cities with the lowest startup costs, mainly on the strength of the lowest business filing fees and energy costs for nearly all 50 states, according to a new report by financial technology company SmartAsset. Besides the low costs to submit the necessary paperwork to become an LLC, Arkansas ranks near the top in annual utility costs compared to most U.S. cities. For instance, total yearly costs of gas and electricity for a business with a 1,000-square-foot office in Little Rock would be around $1,546, representing savings of several hundred dollars per year as compared to most of the other cities in the study. To find the cities with the lowest startup costs, SmartAsset collected data on the typical costs of starting and running a business in 81 of the largest cities in the country. The total expected startup costs over the first year of operation for a company in each of these cities were calculated by factoring in expenses for office space and utilities, filing and legal and accounting fees, and payroll expenses.

Quality Time:

14 Organizations Receive Awards

Fourteen organizations were presented Arkansas Governor’s Quality Awards by Gov. Asa Hutchinson during the 21st Annual Awards Celebration on Sept. 15 in Little Rock. North Arkansas College of Harrison took top honors in receiving the Governor’s Award for Performance Excellence. Achievement Level Awards were presented to DD&F Consulting Group, Little Rock; National Guard Professional Education Center, North Little Rock; and Saline Memorial Hospital, Benton. Organizations receiving the Commitment Level Award were Central Moloney, Inc., Pine Bluff; College of the Ouachitas, Malvern; Gosnell Therapy and Living, Blytheville; Mountain Meadows Health and Rehabilitation, Batesville; and Shiloh Nursing and Rehabilitation, Springdale. Those receiving the Challenge Level Award were Chapel Woods Health and Rehabilitation, Warren; DataPath, Inc., Little Rock; Greystone Nursing and Rehab, Cabot; Hope’s Creek Retirement & Assisted Living, Van Buren; and Silver Oaks Health and Rehabilitation, Camden. The goal of the Governor’s Quality Award Program is to encourage Arkansas organizations to engage in continuous quality improvement, which leads to performance excellence, and to provide significant recognition to those organizations. The Governor’s Quality Award program partners with the Arkansas State Chamber/AIA.

Short & Tweet Gov. Asa Hutchinson @AsaHutchinson Sep 19 Students, you have the world at your fingertips. I want your best opportunities to be right here in Arkansas.

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Hometown, Arkansas

“I would suggest that maybe some of those buildings could be considered historic, and maybe some of them could just be considered old.” – Simmons Bank CEO

George Makris 54

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

City officials have made it a priority to clean up the Main Street area in downtown Pine Bluff where five structures are being demolished because of a lack of upkeep. On the other hand, the Port of Pine Bluff and the Harbor Industrial District – where Southwind Milling recently constructed a rice mill – have been bright spots for Jefferson County.

Pine Bluff Begins the Long Road Back The state of its downtown area illustrates the Jefferson County city’s current situation. By Steve Brawner

PHOTOS: BOB OCKEN

t’s no secret that Pine Bluff has seen better days. According to the U.S. Census Bureau, the population dropped 7.6 percent, from 49,080 to 45,332, from 2010 to 2014. That’s down from 57,389 in 1970. The median household income of $30,515 is more than $10,000 less than the Arkansas median of $40,768. Jefferson County’s unemployment rate of 7.8 percent is 2.4 points higher than Arkansas’ 5.4 percent. Many Arkansas downtowns are rundown, but parts of Pine Bluff ’s Main Street have fallen down. But there are bright spots, and a reason to look ahead. www.talkbusiness.net

Hometown: Pine Bluff Bryan Barnhouse, director of economic development for the Economic Development Alliance for Jefferson County, said the county has much to offer employers, including the Port of Pine Bluff, the associated Harbor Industrial District, a Union Pacific rail yard and the fact that most industrial sites are located within five to 10 minutes of Interstate 530. Pine Bluff has two higher education institutions, the University of Arkansas at Pine Bluff and Southeast Arkansas College, with which employers can partner. Barnhouse said the county has seen an increase in interest from site selection consultants and is advancing farther in the process than it has in the past. The county has almost 30 manufacturers, including Evergreen Packaging and Tyson Foods. Evergreen’s Pine Bluff and East Coast locations produce paper products, including most of the old-fashioned gable-top milk cartons used by consumers today. Tyson’s third-largest complex is in the area. Another company, Kiswire, makes steel tire cord. It recently was acquired by a South Korean company and is expanding with state and local incentives. Southwind Milling recently built a $35 million rice mill operation in the Harbor Industrial District next to the Arkansas River. Highland Pellets has acquired more than 150 acres to make wood pellets that it will export to the United Kingdom. “We concentrate on manufacturing locally because it’s what we’re good at,” he said. “It’s what we do. It’s part of our identity, and we can do it better here than most other places

because of our physical in-place assets of infrastructure like the river, the railroad and the highway, but also the workforce. They’re used to manufacturing. It’s what they know.” DOWNTOWN A PRIORITY Perhaps nothing better illustrates Pine Bluff ’s current situation than its downtown area, where five structures in the 400 block of Main Street are being demolished because of a lack of upkeep. Several buildings have collapsed, including the Band Museum, whose roof caved in earlier this year. According to Barnhouse, the problem is more than just an eyesore. “We’ve lost prospects because of downtown, and we’ve been told that,” he said. “We’ve conveyed that to the mayor, and she’s made it a priority to get downtown fixed up.” Mayor Debe Hollingsworth said the city has not had any code enforcement in recent years, so after her election in 2013 the city has gotten tougher about assessing buildings and levying fines. Repairing the area has gone slower than she hoped because the city had to wait for a temporary electricity pole. Now, progress is being made. She said property owners, eager to avoid bad publicity, are cooperating in the process. “Once this 400 block is cleaned up, we’re going to have a fantastic area for somebody to come in and buy and be able to start revitalizing our downtown area, but you had to get it started, and that was the toughest part,” she said. Another downtown issue is the old Plaza Hotel, which is paired with the Pine Bluff

Convention Center and which owner Bruce Rahmani closed July 28. He’s offered to sell it for $3 million; the city has offered to buy it for $500,000. So for now, it sits. Pine Bluff native George Makris, 59, chief executive officer of Pine Bluff-based Simmons Bank, said the city must focus its efforts where it can accomplish the most good, and that may not be downtown. Two railroad tracks run through the middle of the downtown area. Meetings come to a halt when a noisy train passes through, but that doesn’t last long. Perhaps a bigger problem is the damage that is done. Makris said his family’s Anheuser-Busch distributorship warehouse had to be repaired every five years because of the damage to the mortar caused by the rumbling trains. The downtown area is composed mostly of large, multi-story buildings that would be expensive to repurpose. “Everyone likes historic preservation,” he said. “I would suggest that maybe some of those buildings could be considered historic, and maybe some of them could just be considered old.” REDUCED CRIME Hollingsworth said the city does not have a long-term master plan. Instead, it’s working on a three- to five-year plan with measurable goals and visible results. University Drive leading to UAPB has been paved, with utilities laid. Now zoning laws must be updated. The city has hired a marketing person to improve its brand. Parks need to be revitalized, which means the focus may Once the area is cleaned up, Mayor Debe Hollingsworth sees downtown Pine Bluff as “a fantastic area” for developers and revitalization efforts.

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

shift to larger ones while some of the smaller ones are returned to neighborhoods. The city had 18 murders in 2012 and was being called one of the nation’s most dangerous cities. Hollingsworth said crime has been reduced through predictive policing where the force analyzes data every 12 hours to find hot spots and respond accordingly. Meanwhile, the city is removing blight by demolishing 600 houses using an $830,000 state grant. Crime stats will be kept to determine the effect of the program before and after the houses were demolished. The work is being done using prison inmates in the last year of their sentences as part of a pilot program with the Department of Correction. They’ll be screened, provided housing and monitored at all times while

being taught skills that could help them find a job later. If it works in Pine Bluff, it could be tried elsewhere. Makris has seen the city grow, reach its height and then shrink. He said Simmons would like to expand locally. He agrees with Hollingsworth’s concept of starting small. Long-term, the community must decide what it wants to become and where it wants to go. Simmons Bank officials have started a philosophical discussion with city and community leaders about Pine Bluff ’s direction. At some point, that discussion will need to be more serious and organized. “Simmons is prepared to invest in the community behind a plan that is practical and doable,” he said. “Now whether that’s something that we sort of drive ourselves

or whether we think we could do that with a wholesale community effort – I think it would be better with a wholesale community effort – but you know, we’ll just see how that goes.” State Sen. Stephanie Flowers, D-Pine Bluff, said the community must work together and form partnerships across different institutions. It’s not so much that the city is divided as it is compartmentalized and siloed, with the institutions not making enough of an effort to reach out to each other, she said. However, she sees hope. “I think we’re beginning to recognize common issues,” she said, later adding, “Looking back at pictures, photos from Pine Bluff ’s past, this used to be a vibrant city, and I believe it can be again.”

The 29,000-square-foot Science, Technology, Engineering and Mathematics (STEM) Building at UAPB features four classrooms, a study lounge, a computer laboratory, a conference room, a 400-seat conference center and a reflective pool.

Located inside Pine Bluff city limits, the 785-acre Jefferson Industrial Park is home to a number of companies, including Central Moloney’s Components Operation and Wheeling Machine Products, and sites are still available for other prospective tenants.

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TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

Commentary

The Wild Ride Continues For the Oil & Gas Industry By Andy Miller Andy Miller is the senior director of government and community relations for Southwestern Energy Company. He is serves as president of the Arkansas Independent Producers and Royalty Owners and as the Southeast Region chairman of America’s Natural Gas Alliance.

here is no way to sugarcoat it – the oil and natural gas industry is in the middle of a difficult time. American ingenuity and technology have created an over-supply of hydrocarbons, resulting in very low commodity prices. Frankly speaking, we have more of the stuff than could have been dreamed possible just 10 short years ago. It has completely changed our country’s and the entire world’s energy picture. That’s the good news – we are finally in a place where we have a measure of energy security and are not completely held hostage by those who hate us. It is a difficult time for producers, however. It is testing leadership and causing much anxiety and restructuring in the energy industry. We are victims of our own success. However, as with all commodities, the cure for low prices is low prices. It’s the law of supply and demand. Drilling rigs are being laid down all over the U.S. There will be fewer hydrocarbons produced and eventually commodity prices will stabilize. More good news is that we now know that those resources are in the ground and are recoverable. They will eventually be produced. Arkansas has been blessed by an abundant supply of natural resources and those resources will continue to benefit us well into the future.

Arkansas is truly – and very solidly – an energy state and will continue to be for decades.

STATE ON THE FOREFRONT Arkansans can be proud that we have been on the forefront of the energy revolution. The Fayetteville Shale was the second unconventional play (behind the Barnett Shale in Texas) and is where much of this technology was proven. The combination of horizontal drilling and hydraulic fracturing has revolutionized the energy industry worldwide. A few notable facts:

• Today, Arkansas produces 3% of the nation’s natural gas. We are the fourth leading shale natural gas producing state and the 17th leading oil producing state in the nation. Arkansas is truly – and very solidly – an energy state and will continue to be for decades. • An IHS Global Insight study found unconventional oil and gas activity increased disposable income by an average of $1,200 per U.S. household in 2012 as savings from lower energy costs were passed along to consumers in the form of lower energy bills, as well as lower costs for all other goods and services. That figure is expected to grow to just over $2,000 in 2015 and reach $3,500 in 2025. (You’re welcome retail community!) • U.S. manufacturing is experiencing a comeback. Jobs are being created because low and reliable energy costs offset the lower wages paid abroad. • Another technology allows us to liquefy natural gas – an incredibly important aspect that will make the U.S. a NET EXPORTER of natural gas by 2017. With these exports, we can help our allies throughout Europe finally lower their energy costs – and in a way that will benefit everyone, with the exception of Russia. Yes, Vladimir Putin will finally lose his stranglehold on countries throughout the eastern world when there is actual competition for natural gas supplies that have been severely over-priced for decades. • And maybe, just maybe, pending legislation in Washington will finally allow U.S. producers to export oil for the first time since the 1970s. This is vital legislation for the American oil producing market, and your Arkansas congressional delegation is completely in favor of this legislation. THE NEW REALITY The truth is that our modern society is only possible through the use of energy. Welcome to our new reality – one of domestic energy security and over-abundance. It is certainly a much better problem to have than scarcity, which has been our nation’s energy challenge since the 1970s. American technology, ingenuity and entrepreneurship have once again changed the world – and for the better I might add.

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Commentary

Bright Spots Here and There Boost Our State’s Economy By Randy Zook Randy Zook is president and CEO of the Arkansas State Chamber of Commerce and the Associated Industries of Arkansas.

rkansas’ economy is performing at a level that looks like much of the developed world: muddling through and doing OK with bright spots here and there. Slow but steady improvement fairly describes most major sectors, including manufacturing, retail and hospitality. Health care and auto sales are fairly strong. The farm sector is facing tougher conditions due to significantly lower crop prices. Housing starts remain below healthy levels. And we all know that energy prices, namely oil and gas, are dramatically lower than a year ago, meaning good news for many and bad news for those involved in production of these fuels. So all in all, it is a mixed bag but positive, if only modestly so. Thank goodness for the economic engine in Northwest Arkansas. Sub-par growth in national numbers continues to constrain Arkansas’ growth. The Federal Reserve maintains short-term interest rates at 0% for fear of sending the economy back into recession. Job growth seems to have slowed just as it looked as if we were headed toward better results. Some observers argue that the Fed is out of ammo at this point in the recovery and only fiscal policy changes have the potential to accelerate growth. Those changes include trade policy to open up more markets for U.S. goods. Other options include corporate tax reform and slowing the pace of burdensome regulations from the EPA, National Labor Relations Board and other non-legislative sources. Infrastructure investments, starting with highways, offer enormous potential for stimulating growth if we can just come to reasonable terms politically.

One of our greatest opportunities in Arkansas centers on our workforce training and development efforts.

THE NEED FOR SKILLED WORKERS One of our greatest opportunities in Arkansas centers on our workforce

training and development efforts. Arkansas businesses all over the state are hampered due to the shortage of people with the right skills to fill jobs that are available. Diesel technicians, welders, truck drivers, manufacturing technicians, CNC machine operators, heavy equipment operators and many others are in short supply. While college degrees for more people are desirable, there are many paths to success that do not require a degree; training beyond high school, yes. And top-quality, world-class training with current-generation equipment, first-rate instructors and state-of-the-art technology is a must. The good news is that K-12 educators, community college leaders and policymakers are awakening to these realities and moving on many fronts to improve their offerings. This is exciting progress that will yield big dividends sooner rather than later. Beyond workforce development efforts, where are the best opportunities in Arkansas’ economy? Business formations, new business startups, continue to lag historical trends. How can we create conditions that encourage people to take risks, make investments and pursue dreams to own and lead businesses? There are a number of ways to do this, some starting in the classroom. Teachers need to better understand and teach the advantages of our free-enterprise system in order to encourage more young people to aspire to start and grow their own businesses. The surest way to control your own destiny: be your own boss. ENCOURAGING EFFORTS Gov. Asa Hutchinson has set his top priority as making Arkansas the most attractive state for new job creation. He is leading a revitalized effort at the Arkansas Economic Development Commission to attract more businesses to the state. At the same time, he is urging other state agencies to make Arkansas as cooperative and helpful as possible in order for existing businesses to grow and prosper. These are very significant developments. So clearly there are positive, encouraging efforts underway all over Arkansas that will help us move faster toward the ultimate goal of reaching our full potential as a state and as a people. If we can just muddle our way through the political mine field of the upcoming presidential campaign. www.talkbusiness.net

Feature

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

Longtime journalist and political observer reflects on the changing times in the media world. By John Brummett The author of this article is a regular columnist for the Arkansas Democrat-Gazette.

ill Vickery – Republican politico and lobbyist and radio talk show hobbyist – was explaining earlier this year to a leadership class of the Greater Little Rock Chamber of Commerce that the political media in Arkansas had changed seismically since the 1980s and 1990s. He said it had all served to advance the “small-d” democratic cause and the “big-R” Republican takeover. Vickery spoke with some authority in the matter, although he was in his formative adolescence and young adulthood in the 1980s, conditions that he and some of his friends and foes might agree he’s not entirely left behind. He has been directly active in Arkansas politics and media since 1994, when he worked on a campaign for a workers’ compensation ballot issue. Two years later www.talkbusiness.net

Feature: Confessions he worked for the rising but ultimately failed Democratic U.S. senatorial campaign of Lu Hardin, and then, in a fluid pivot, ran Tim Hutchinson’s winning Republican campaign for that office in the fall. Actually, Vickery surely set some sort of versatility record that year. He ran or consulted to … not one, not two, but three U. S. Senate campaigns in Arkansas. Before joining Hardin in ’96 in the Democratic primary – yes, Hardin soon

became a Republican himself, so it’s hard to keep up – Vickery had for a time provided services to the Democratic campaign of Sandy McMath. And Vickery has direct media experience hosting a right-wing talk show on Sunday mornings on 103.7-FM in Little Rock that he describes, not un-aptly, as “frat boy radio.” I was, for a short while, a regular once-a-month “co-host,” though I decided – and he probably agreed, though he was too

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kind to say so – that our shtick had run its course after six months or so. And he does regular television commentary and Sync Weekly alternative-newspaper columns to represent the Republican point of view. As it happened, Vickery was joined before the Chamber class that day by a 1980s-surviving media dinosaur, one who was still toiling – though less relevantly, Vickery said – in the contemporary era. That would be . . . well, the principle character in Vickery’s explanatory narrative was the man seated beside him that day, meaning me. NEWSPAPER WAR AND ALL THAT In the ’80s and into the ’90s, Vickery explained, there was a thriving newspaper war, and, after that, a near-universally circulated surviving statewide newspaper. Fox News had not yet debuted on cable television. The Internet had not yet exploded with personal blogs and social media and near-universal access. The political agenda in Arkansas was set, he said, by local newspaper columnists – John Robert Starr and Meredith Oakley and me, mainly, as complemented by alternating week-day commentary appearances by Starr and me on television station KATV, Channel 7, in Little Rock. Coffee shop talk was driven by what we wrote. Insiders read us and leaked to us. Largely as a result, Vickery said, the state remained a refuge of rural Democratic inertia – in part because Starr was friendly with Bill Clinton and in part because my columns came from the left, and in part because we were writing and commenting mostly on an intra-state basis and defining Arkansas politics within that parochial context. Defining the Arkansas political agenda differently from the national one – that, in a phrase and nutshell, was what the Arkansas Democratic Party long depended on for perpetuating dominance. But now, Vickery said, I am the lone of those three columnists still toiling, and, while people still read what I write, and consider it in dialogue and debate, they will – by the time they read the newspaper – already have watched Fox or, if they prefer,

MSNBC, and they will have surfed their favorite partisan blogs and Twitter feeds and national political news sources. That is to say the agenda has now been defined nationally before people get to what I write, Vickery said. The result is more democratic, Vickery said, in that anyone with a Twitter feed can say his political peace in 140 or fewer characters and affix the relevant hash tag to get himself widely read and considered. It is more Republican, he said, because Arkansas people always leaned conservative, but only converted from nominal Democratic affiliation to a Republican one when the setting of the political agenda became the purview of external sources reporting in a national and often brazenly partisan context. THE RESPONSE So you might wonder: What did I, seated beside Vickery during this presentation, say in response? I said I still sometimes break news in the newspaper column on the Voices page of the Arkansas Democrat-Gazette, and that the column is still popular and influential, and that newsmakers still talk to each other in that space, and that the statewide newspaper remains invaluable in the professional organizing and in-depth and nonpartisan presentation of items, and in thoughtful op-ed essays, and that we should thank the Lord for all of that, and for the continued vibrancy of our statewide newspaper, but that – yes, all right, I admit – Vickery was making a fairly sound analysis of the state’s dramatically changed media and political environment and its profound effect on the state’s wholly upturned politics. As recently as 2008, I was publicly ridiculing goofy-sounding Twitter for its 140-character depth and debating a woman then employed by television KATV who was doing a story each day based on a daily reader poll by a format called “Choose Your News.” I still think it’s inane to ask readers to choose the news, but now I tweet like a sonofagun. I consider one of my greatest career-sunset accomplishments to be runner-up status this year in the Arkansas Times’ best-of-Arkansas contest for best

Twitter feed. Adapt or die, you know. I tweet to ask questions of political newsmakers because it’s easier than calling them or going to see them. I tweet to debate news sources publicly. I tweet to link and tout my newspaper columns, and to link other relevant matters. I tweet to try to be funny, since the typical one-liner usually can be performed in 140 characters. And sometimes I do live-tweeting during Razorback football games to make fun of Bret Bielema

and rile Razorback Nation and share in the Cub fan-caliber agony of lifelong Razorback football devotees. Example: After the Toledo loss, there was a tweet asserting, “There are three kinds of tragedies – Greek, Shakespearian and Razorbackian.” THAT TWITTER FEED “Dare I say it?” asked Vickery, when I called him to flesh out those prior obser-

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Feature: Confessions vations. And then he said it. “Your Twitter feed now sets the agenda more than your newspaper columns – because it takes place in the white-hot moment. By the time you write a column about a news development, it’s been two or three days since you tweeted your instant reaction.” But the singularly dominant contemporary news source for Arkansas business and political insiders, Vickery said, is Roby Brock’s Talk Business and Politics – online at talkbusiness.net and also publishing this magazine and newsletters and email services and airing a weekly show of news and commentary on KATV and public radio. Vickery called it the “Politico of Arkansas.” I spoke up for the Arkansas Times blog, also called the Arkansas Blog, where my old newspaper colleague Max Brantley, a reporter’s reporter, albeit one now fully given over to blustery liberalism, churns out a frenzied and jam-packed news feed. Vickery agreed with that to this extent: He doesn’t think insiders depend as much on the Arkansas Times as Talk Business, because

of the liberal manifesto of the Times, but he does believe that other news professionals scour and react to the Times, thus ceding it influence, because of the sheer volume of scoops that Brantley regularly produces. I also defended the fine statewide daily newspaper that publishes my column, the Arkansas Democrat-Gazette. Vickery acknowledged that he still loves the newsprint product and generally finds that newspaper articles – even those about news that broke on the Internet the day before – to be more comprehensive and credibly presented than what he typically sees digitally. The daily print newspaper still has these advantages and special responsibilities: Talk Business is serving a niche, meaning business and political insiders. The Democrat-Gazette alone serves a general statewide readership. And the Arkansas Times breaks news but couches its report in political opinion, while the Democrat-Gazette is, though plenty conservative editorially, fairly vigilant in the objectivity of its news articles. As for whether any bias shows up in the

newspaper’s article selection or display – well, that’s an age-old dispute affecting all newspapers, starting with The New York Times, and a debate long preceding and transcending the Democrat-Gazette, Talk Business, the Arkansas Blog, the Internet and cable television. POLITICAL COMMENTARY The other major change in Arkansas media coverage of politics has occurred in the nature of political commentary. There are now two Sunday-morning television shows offering segments containing opinion or analysis on state politics – the aforementioned “Talk Business and Politics” on Channel 7 and “Capitol View” on KARKTV, Channel 4. Once there only was public television’s low-key “Arkansas Week” and, for a few years, the Channel 7 appearances by Starr and me. As for opinion-writing: I came to a column of commentary through newspaper reporting, as did Starr and Oakley. Our opinions tended to fall left or right,

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Republican or Democratic, but they were not pre-designated or labeled – or constrained, much less mandated – as such. The formal editorials provided the official views of the paper. The columnists were on their own, speaking only for themselves. That’s still the case. I always said – and meant, and still say – that I prefer to tell the reader something he doesn’t know than tell him how I believe he should think about something we both already know. That’s straight from an old reporter’s essence: The power is in the news and an opinion is more meaningful and effective if set up by new and relevant information. Nowadays, most Internet political commentary comes from people emerging not from backgrounds in newspaper reporting, but in politics and partisan activism, and the resulting views are certain to advance – are, in fact, intended to advance – a Republican or Democratic cause more than independent personal thinking. Media commentaAHCA ad half page horizontal.pdf 1 tors tend to be unabashed spinmeisters for

the competing parties. Talk Business’ two main online weekly columnists are John Burris, designated Republican, a former House GOP leader who was political director last year for Tom Cotton, and Jessica DeLoach Sabin, designated Democrat, an activist Democrat who is married to Democratic state Rep. Warwick Sabin. SO WHICH IS BETTER? Who is to say which is better – a reporter-trained columnist who tends left or right in his honest opinions, or a politics-trained columnist who writes from direct experience in the arena, even if from a transparently partisan influence and with a transparently partisan agenda? Open political partisans writing media commentary on partisan politics is no less a conflict of interest than a newspaper columnist and magazine contributor writing about newspaper columnists and magazine contributors. 08/20/15 9:55 AM And who is to say which is better overall

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– a less frenetic media atmosphere in which a political agenda is set by a newspaper that reports, analyzes, comments and opinionates on what happened yesterday, or a perpetually moving news cycle in which a political agenda is set second-by-second on blogs and social media by the mad dashing of often avowed and competing partisans? All I know is that not many other people could write about this transformation from the perspective of one writing a statewide newspaper column beginning in 1986 and continuing still, and who maintains today a hyperactive Twitter feed – and from the perspective of one who will live-tweet a college football game on his phone on a Saturday night and joyously spread out the treasure of a big newspaper or two on Sunday morning. I also know that, as a political place, Arkansas is wholly different in 2015 from what it was in 1986, perhaps nearly as much because of the changing media as the factor most usually cited, which is that Arkansas doesn’t like Barack Obama.

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Regional: Northwest Arkansas

With 450 Job Cuts, Wal-Mart Looks to Become ‘More Agile’ By Michael Tilley On Oct. 2, Wal-Mart Stores CEO Doug McMillon announced 450 corporate job cuts at the home office in Bentonville. The cuts had been rumored for several weeks, with McMillon noting in an email to all employees that the cuts allow the home office to “move with speed and purpose.” Greg Hitt, vice president of corporate communications for Wal-Mart, said the cuts were made after several months of evaluation and said it was a “fair and consistent process throughout.” However, he said, it was not easy. “At the end of the day, the decisions that were made were not made lightly,” Hitt said. THE SHIFTING SCENE McMillon said the cuts were needed to move faster in the dynamic retail environment. “Our customers are changing, retail is changing and we must change. We need to become a more agile company that can easily adapt to shifting customer demand,” McMillon said in his statement. “After months of evaluation, we’ve concluded there is an opportunity to better position our Home Office teams to move with speed and purpose. This results in 450 associates being displaced today.” Hitt would not discuss at what level the job cuts were made or what departments may have been cut the most. The layoffs had been expected to number up to 1,000 or roughly 5.5% of the corporate workforces of Wal-Mart and Sam’s Club. The paring down of corporate jobs aligns with other restructuring moves in the past year. Wal-Mart management has vowed to add lower level managers back in its 4,500 stores as well as bump up hourly worker pay to the tune of a $1 billion impact to the retailer’s bottom line. The job cuts may also

be a way to help lower expenses in the face of investments in the retailer’s e-commerce business. Analysts have said the company would have to find a place to cut costs to

“Our customers are changing, retail is changing and we must change.” – Wal-Mart Stores CEO

Doug McMillon

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

afford placing more people in stores and beefing up the e-commerce business. MCMILLON’S STATEMENT “Today we are announcing structure changes that will impact people we care about. As a leader, these are some of the toughest decisions to make. While difficult, I believe these changes will help us become a more nimble organization that serves customers better. “Our customers are changing, retail is changing and we must change. We need to become a more agile company that can easily adapt to shifting customer demand. After months of evaluation, we’ve concluded there is an opportunity to better position our Home Office teams to move with speed and purpose. This results in 450 associates being displaced today. “We are grateful for their service. Taking care of them in this transition is a priority, and we are providing these associates access to services and resources that will help them find their next opportunity. “This is an important time in our history – requiring all of us to think critically about our business and not be afraid to challenge the status quo. For the company, this in part means pulling back in some areas and investing in others. “Today you will be hearing from your leadership about the changes occurring in your area. Please engage your leaders and have the courage to ask questions. We must be transparent with each other so we can begin the process of moving forward. “As we move into the holidays, stay focused on serving our customers. I’m optimistic about our future and the work we will do together. Thank you for all you do every day for each other and our great company.”

Springdale Firm Creating New Class of Medical Tests By Steve Brawner A Northwest Arkansas-based company is developing blood tests it says will diagnose a range of medical conditions as accurately as current lab tests, but much more quickly and cheaply and from the privacy of a patient’s home. NOWDiagnostics’ ADEXUSDx product encloses the entire process in a single plastic unit – like a home pregnancy test, but using blood instead of urine. Membranes inside the plastic housing separate plasma from blood cells, performing the same job as centrifuges in the lab, Kevin Clark, the company’s CEO, said. Results are available within five to 15 minutes. The company is developing 36 products that would test a variety of medical conditions, including diseases and food intolerances. In some cases, more than one type of condition, such as hepatitis B and hepatitis C, potentially could be tested by the same device. It already is marketing six products manufactured in a 22,000-square-foot facility in Springdale, with its hCG pregnancy test available to labs in the United States and all six available throughout Europe and elsewhere. HELPFUL IN THE ER The hCG test can detect pregnancy within 48 hours of implantation, Clark said. It’s particularly useful in emergency rooms, to which it’s being marketed, so that certain medical procedures can be avoided that would be harmful to a fetus. Using the test, doctors don’t have to wait hours for a lab test to determine if a patient is pregnant, and they don’t have to wait for the patient to urinate into a cup, which not all emergency room patients can do. Clark said his product is more sensitive than urine-based tests and is not as prone to false negatives. Products already for sale in Europe

include two tests that can determine if a patient’s blood contains proteins that are released during a cardiac arrest. The Vatican’s hospital ambulatory system is using this product to test patients as they are transported, radically speeding up the diagnosis, said Jeremy Wilson, founder of NewRoad Ventures out of Bentonville, a capital investment firm that is NOWDiagnostics’ parent company. Other tests include three toxicology tests for overdoses of aspirin and acetaminophen and for methanol contamination. “You’ll be seeing additional tests rolling out from the company over the next 12 to 24 months in pretty rapid fashion,” Wilson said. NOWDiagnostics is focusing for the time being on the professional market, which is the easiest to enter. It plans to move more broadly from emergency rooms into doctors’ offices. It’s being priced to “save the system money,” Clark said. The retail, over-the-counter market will take years to enter, but the process has already begun. Clark said the product enables consumers to learn if they have a certain condition, like the HIV virus, in the privacy of their home. Moreover, a parent can learn if a child is infected with strep throat or perhaps has something less serious, helping the parent decide if it’s necessary to miss work and take the child to a doctor’s office filled with other sick kids. After talking to large retailers and insurance companies, “we’re thinking that once we get to [over the counter] and retail that we’re talking about something south of $20,” Clark said. A NEED TO SCALE UP The firm’s 18 individuals are capable of producing batches of 10,000 tests at a time, with a new batch able to be started each

day. That’s enough to satisfy the professional market, but as the company enters the overthe-counter market, it will have to scale up and automate, Clark said. The creation of NOWDiagnostics helped lead to the birth of its own parent company, NewRoad Ventures. It all started when Wilson, a former Walmart executive and former chief operating officer of the digital advertising and marketing company Rockfish, was approached by a multinational company wanting to develop a new category of medical tests. Wilson approached Clete Brewer, whose ventures include co-founding the Staffmark employment agency, co-owning Sport Clips hair salons for men, and serving as chairman and CEO of water treatment company BlueInGreen. The two created NewRoad Ventures based on a simple philosophy: instead of trusting that an entrepreneur’s good ideas would find acceptance in the marketplace, they look for areas where demand already exists. They raised about $21 million during the initial startup phase that has been plugged into 15 companies, including social analytics company DataRank, and Overdrive, an online auto parts distributor. Toronto-based ZBx Corp. had developed the medical testing technology for which the multinational company was looking, so NOWDiagnostics was formed to license it for the U.S. market and certain other countries. After a $10 million capital campaign, NOWDiagnostics recently bought ZBx Corp. and now controls the product. Wilson foresees medical personnel carrying a thousand of these tests in a backpack to a remote village to test for malaria. “It is without question … going to reinvent health care globally,” he said. “It has the potential to literally change the way patients and consumers are … diagnosed for treatment.” www.talkbusiness.net

Regional: Northwest Arkansas

With New Transport Division, NanoMech Eyes Industry Issues By Talk Business & Politics Staff Springdale-based NanoMech recently launched its own transport division to address the trucking and railroad industry requirements for increased sustainability, performance, reliability and efficiency. NanoMech CEO Jim Phillips said the division incorporates NanoMech’s lineup of products aimed at the transportation industry and creates a new segment in the company. “While the outlook for trucking and freight revenues, and the industry in general, looks extremely positive, with revenues predicted to double by 2025, industry leaders are on a constant search for innovations to improve safety, reliability and performance of their fleets while at the same

time reducing operating costs,” he said. NanoMech has hired a director of transport and director of transportation technology, along with three additional production engineers. A third shift will also help with increased volume. “The products are specifically engineered and designed to address the growing demands of the trucking industry operating under extreme conditions,” Phillips said. Products falling under the Transport Division include: • TriboTuff Ultra Red Truck Grease for truck and tractor chassis lubrication, which extends the lubrication intervals through advanced nanoengineered

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science. • GuardX, a multi-functional coating, provides wear, corrosion, water and ultra-violet resistance for trucks, trailers and components, including undercarriages, truck beds and wheels. “Advanced lubrication and corrosion prevention are the top priorities for extending life and performance for the private and for-hire truck fleets. These lubrication and corrosion problems originate at nanoscale. Our nanoengineered TriboTuff and GuardX technologies and products are scientifically designed to eradicate these industry-wide issues,” Ajay Malshe, NanoMech’s chief technology officer and founder, said.

Amazeum to Host ‘Priceless Nights’

Tyson Foods Inc. has agreed to underwrite the cost of the $9 admission to the Scott Family Amazeum at Bentonville on Wednesday evenings in a program dubbed “priceless nights” in the Amazeum’s first year of operation. During priceless nights – from 4 p.m. to 7:30 p.m. – Amazeum patrons pay no admission fee, but are invited to make an optional donation. Tyson Foods announced the community grant on Oct. 20. During these community nights the Amazeum will operate on a “pay as you will basis,” in order to give all children and families more opportunities to use the amenity, according to Amazeum management. The Amazeum is a hands-on, interactive museum for children and families that opened this past summer. It features approximately 50,000 square feet of exhibit, meeting and learning spaces and is designed to engage the imagination of children and their families through hands-on activities and interactive exhibits.

Regional: Northeast Arkansas

Jousting in Jonesboro After nearly a decade of discussions, convention center debate reaches a fever pitch with dueling proposals. By Michael Wilkey The decision to build a convention center in Jonesboro has been debated for nearly a decade, as supporters and opponents alike have made their opinions known. In the past year or so, two projects have come to the forefront with the debate over which one will be successful and built reaching a fever pitch. ASU officials announced in February that they had been working with Missouri-based O’Reilly Hospitality Management. The ASU project includes a 200-room Embassy Suites, a 40,000- to 50,000-square-foot conference center and a Houlihan’s restaurant to be built at the former ASU track and field complex. The second project involves the Keller family of Effingham, Ill. Keller first expressed interest in the project during 2009. The family, along with city officials, announced Aug. 28 that a 152-room Hyatt Place Hotel and Conference Center would be built along U.S. 63. Keller had previously worked with ASU on its project, but it fell through. PERRIN: NO ‘FAVORITE’ Jonesboro Mayor Harold Perrin has publicly supported the overall idea of a convention center in Jonesboro, citing its economic impact. The Keller group announced Aug. 28 that it had secured funding for their project, leading Perrin to say he would “focus my time and energy on whichever project that was ready to go first.” Two emails were sent by Perrin and Dr. Tim Hudson, the ASU-Jonesboro chancellor, on Aug. 27 on the issue. Perrin said while he personally supported the ASU project, the city could only support one project with possible

assistance. Hudson responded later in the day, saying that ASU has provided a strong economic impact to Jonesboro and the region. In the email, Hudson cited the construction of an osteopathy school being built on the ASU campus. The school, which will be an affiliate of the New York Institute of

“I honestly do not believe that the market can support two large convention/ conference centers being built at the same time.” – Developer

Tim O’Reilly Technology, will be located in Wilson Hall on campus. Perrin said he does not have a “favorite” project between the two. Perrin said the discussions between the city and ASU on the ASU project were positive and that he worked to help make the project a reality. However, Tim O’Reilly, the developer for the ASU project, said he was surprised by the city’s decision. “Mayor Perrin pledged his full support

for our project a few weeks ago when we met in Little Rock at the ASU office, but I understand that he is now supporting another project, which was somewhat of a shock based on our recent conversations,” O’Reilly said. “Most similar projects that our team has been involved in have financial support from the city because the tax and community revenue that is gained from a large conference/convention center is substantial – most cities see the investment in such a project as extremely positive for the community because it creates jobs and substantial tax revenue. This can be a great partnership and a ‘win-win’ for a city and a private developer.” ARE TWO TOO MANY? However, he said two convention centers in Jonesboro may be too much for the market to withstand. “I honestly do not believe that the market can support two large convention/ conference centers being built at the same time. The fact is that one or both of the facilities are not going to be successful. However, we are proceeding with our project and I like our chances based on the power of the Hilton/Embassy Suites and Houlihans brands, as well as the combination of our development, operations, sales and marketing teams, the Jonesboro Chamber and the substantial support that Arkansas State University can provide,” O’Reilly said. “We have a few details to work out with ASU and some other stakeholders, but we can definitely deliver the financing, investment, Hilton Embassy Suites flag and Houlihans franchise to make this project a reality.” www.talkbusiness.net

Regional: Northeast Arkansas

Degree in 3 Arkansas State announces three-year bachelor’s degree option. By Talk Business & Politics Staff A new program at Arkansas State University will allow students to finish their degrees in three years. The three-year bachelor’s degree programs rolling out this fall—Degree in 3 – allows students to reduce costs and complete their undergraduate degree in three calendar years. Along with the three-year program advising and checklists, A-State’s Degree in 3 also provides support for early entry into graduate school, university officials said. “Earning a bachelor’s degree in three years provides a substantial savings for students and their families in time and money,” ASU-Jonesboro Chancellor Tim Hudson said. “Making college more

affordable is a goal at Arkansas State, and aligns with state priorities. We want to do our part to increase the number of university graduates in Arkansas.” Beginning this academic year, scholarships provided by Arkansas State can be used for summer semester course work. Combined with new summer course offerings to support early degree completion, Degree in 3 allows students to utilize all three semesters during the calendar year. Aside from the significant savings of completing the bachelor’s degree in three years, early A-State graduates earn the bonus of using the remaining monies of their applicable four-year scholarships to enter graduate school at Arkansas State.

“In certain career fields, earning a bachelor’s degree is the starting point,” Provost Lynita Cooksey said. “We want to provide Degree in 3 students a head start – they can use their last year’s scholarship to reduce the cost of their first year of a graduate program at A-State.” Another group that benefits from Degree in 3 is the growing number of high school students entering college with a semester or more of university credit through concurrent enrollment. “As concurrent courses become more common in Arkansas high schools, Degree in 3 builds on these students’ demonstrated desire to achieve,” Hudson said.

Arkansans deserve a better tomorrow.

(866) 872-6726 www.transamericabenefits.com CHOTB2-0215

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

Regional: Central Arkansas

Viable Venture

Center marks a year of progress, programs and premium mentorship to help startups succeed. By Todd Jones When the Little Rock-based Venture Center launched in May 2014, the organization hit the ground running. Within just a few weeks it launched the first pre-accelerator class, 1 Million Cups, as well as other programs. “We like to say that we operate at the speed of business,” Lee Watson said with a smile. This is one of his “Lee-isms,” said Steve Rice, director of Digital Strategy and Marketing for the Venture Center. Watson, president of the Venture Center, is talking about the one-year-old organization, and all of the startups that have found a home, or a start, as a result of the center. These are, as Watson says, programs, not events. They are programs, because, he said, they are “designed to produce an output.” “Everything we do has a component of hard and soft skill development,” Watson said. “What we like to call modern workforce development.” He added that they also bring “people together, and every one of those programs helps people develop soft skills, teamwork, presentation, communication and hard skills such as coding and product development.” NO SPACE, NO PROBLEM Initially Watson said the Venture Center hoped to find space in which to operate, but like any good startup, found itself pivoting when a meeting with Little Rock Regional Chamber of Commerce CEO Jay Chesshir led to the opportunity to use most of the first floor of the chamber’s downtown headquarters. From May until December, the Venture Center held programs, including its pre-accelerator classes, huddle hour sessions and 1 Million Cups events on the first floor of the chamber building. Watson said Chessir wanted to help.

“He basically let us take over the first floor of the chamber of commerce to run programs, gave us offices, and conference rooms to meet for our mentorship programs, the big meeting space for 1 Million Cups and the pre-accelerator,” he said. “It allowed us to immediately focus on running programs.” Watson said using the chamber space led them to becoming partners with the Little Rock Technology Park Authority. The partnership with the Tech Park allowed them to share 8,000 square feet of space beginning in December 2014. Watson likes to say the Venture Center is the center of gravity for entrepreneurialism in Central Arkansas. The center is one of the players in the Central Arkansas system, but it helps hold the others together. The programs the Venture Center offers help to balance that gravity. 1 Million Cups in Little Rock is welldocumented, and Talk Business & Politics offers a preview each week of the presenter. The speaker series is open to everyone and helps bring people in the door at the Venture Center. In doing so, it introduces them to the hub of activity. Watson said programs like 1 Million Cups have a 3 to 5% conversion rate, meaning, 3 to 5% of the participants in these “first touch” programs decide to move forward and test the viability of their idea or business. OTHER OPPORTUNITIES Other programs that serve as an entry point include Catalyst, the JOLT Hackathons, 2 Days to Startup, Code*IT and the Pitch contests. Pitch N Pint was a successful program in the summer that brought in pitch contestants. It was held offsite at The Flying Saucer restaurant. Catalyst started out as a member mixer

intended for members of the Venture Center. After low initial turnout, the Venture Center reached out to the chamber and Catalyst began to operate more like an opportunity for the community to connect. The staff added speed networking to have more structured networking between participants. The Mentorship Network is the crown jewel program for The Venture Center. Watson referred to it as a “Real Managed, Mentor Program.” He wanted the mentors to be equipped to lead intentional mentorship sessions. The mentorship program, according to Watson, is a metrics-driven program. The purpose of making it measured is that it’s more than advice over a cup of coffee, he said.

Starting Stats

Here are a few numbers from The Venture Center’s first year.

17 25 41 53 155 200 Mentors

Pre-Accelerator Teams

Active Startups Jobs Created Members Mentor Sessions

$1.5 million Money raised by member companies in the last 10 months.

www.talkbusiness.net

Regional: Central Arkansas

Creative Corridor An essential – but long neglected – section of downtown Little Rock has been transformed into a vibrant home for arts-related businesses. By Talk Business & Politics Staff In late 2012 it was a plan – and a dream. Three years later, Little Rock’s Creative Corridor is fast becoming the place to be. The Creative Corridor – a four-block, previously neglected section of Main Street between Third and Sixth streets – is home or future home to a number of arts-related businesses, such as the Arkansas Repertory Theater. Mayor Mark Stodola has called it “a collision” of arts, culture, science and technology and a place where “the young, creative class wants to be.” CJRW’S MOVE Little Rock-based advertising, marketing and PR powerhouse CJRW decided it

wanted to be part of it, opening its new, stylish headquarters on Main Street back in the summer in the old Fulk Building, a location known to many as the longtime home of Bennett’s Military Supply. “We are extremely pleased to be among the first new tenants along the Creative Corridor,” said Wayne Woods, who serves as chairman emeritus at the agency. “It’s fitting that a creative shop like ours will be at the

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

Gateway – essentially the front door – to the Creative Corridor.” Gabe Holmstrom, executive director of Little Rock’s Downtown Partnership, was thrilled that CJRW made the move. “We could not be more excited about CJRW moving to Main Street,” Holmstrom said. “While they have been downtown for many years, their move to Main Street validates the continued growth and resurgence we are seeing along the Creative Corridor.” AWARD-WINNING PROJECT The plan to transform and revitalize the area – created by the University of Arkansas Community Design Center and Marlon Blackwell Architect, both of Fayetteville –

was unveiled in December 2012 by the City of Little Rock and the Downtown Partnership. Since that time, it has won a number of awards, including a 2014 Honor Award from the American Institute of Architects, 2013 American Architecture Award from the Chicago Athenaeum: Museum of Architecture and Design and the European Centre for Architecture Art Design and Urban Studies. It also won a Charter Award in the Neighborhood, District and Corridor category in the 2013 Charter Awards, sponsored by the Congress for the New Urbanism. Cranford Co. is another firm that has relocated to the area, settling in at the Arkansas Building on Sixth and Main. “We are thrilled to make this next step in our agency’s growth,” said Ross Cran-

ford, who founded the agency along with his brothers Jay and Chris in July 2014. “As longtime supporters of Downtown Little Rock and the Creative Corridor, it’s incredibly exciting to see all of the energy returning to this vital section of our city.” EPA ADMINISTRATOR VISITS U.S. Environmental Protection Agency Administrator Gina McCarthy visited the Creative Corridor in October. During her tour, she engaged with students from eStem Public Charter School, which is at Third and Louisiana and just a block away from the Creative Corridor. The students were involved in developing the design plan for the Main Street green project that incorporates rain gardens and improved crosswalks to make the street more attrac-

tive and to better manage storm water. In a heartfelt talk with the students, McCarthy encouraged and thanked the students for their ideas and involvement in the environmental project. “As you go to school, I just want to congratulate (you) for allowing me to be outside with you and learn about the world we live in,” McCarthy said. “I think for a while we forgot about that …, but we know we need to give you clean air and clean water and nice places. One of the great things about this is that it is not only really healthy for our air and climate efforts, but it is also a really nice place to be.” Grants, including ones from EPA and the state Natural Resources Commission, helped fund the redesign and redevelopment of the area.

Marking 60 Years Boozman, Hill help celebrate 60th anniversary of Little Rock Air Force Base. By Talk Business & Politics Staff On Oct. 9, Sen. John Boozman, R-Ark., and Congressman French Hill, R-Little Rock, honored the 60th anniversary of the Little Rock Air Force Base on the floors of the U.S. Senate and House. Hill said the base has provided a strong mission in the defense of the country. “I rise today to honor the men and women of Little Rock Air Force Base and the surrounding communities for their 60 years of dedicated service and sacrifice to the defense of our nation. In its long history it has had many important missions, including reconnaissance and bombers, and is now known as the C-130 capital of the world,” Hill said. “Little Rock Air Force Base is one of the most technologically advanced and well-run military installations in the entire country and, in my view, is clearly a center of excellence for our global airlift operations. It is the tactical airlift ‘Center of Excellence’ and trains aircrew members from our three services and more than 40 nations. The base builds the foundation of America’s combat airlift capability and trains the world’s best

airlifters to ‘fly, fight, and win.’” Hill said the work at the base is inspiring. “I am truly honored, and most of all proud, to represent Little Rock Air Force Base and the surrounding communities. The service and sacrifice of the men and women of Little Rock Air Force Base are examples to all Arkansans and Americans, and I look forward to continuing to represent such an incredible military asset,” he said. Boozman said that the work to build the base was due to residents in the Jacksonville area. “I rise today to honor the men and women of Little Rock Air Force Base and the surrounding communities for their steadfast support, spirit of service, and faithful dedication to the defense of our nation,” Boozman said. “In 1951, community leaders in Jacksonville, Arkansas and the surrounding region began petitioning Congress for the creation of a local air base. The needed support was unattainable in the post-World War II environment, so supporters took it upon themselves to raise the money and purchase

the land required for the base. In only 32 days, these air base advocates raised more than $800,000, and with the combination of purchased and donated land, 6,359 acres were gifted to the U.S. government for the establishment of Little Rock Air Force Base.” The base has served in a variety of roles, Boozman noted. “On Oct. 9, 1955, the base officially opened. Since that day, it’s served as a strategic operating location for numerous mission sets,” he said. “From reconnaissance and bomber alert missions to the everpresent readiness of Titan II missile crews, Little Rock Air Force Base stood ready. With their cargo aircraft and selfless airmen, the base has responded to numerous natural disasters and humanitarian missions. Most recently, with the C-130 Hercules, Little Rock airmen have had a continuous global presence. From training members of three U.S. services and 20 foreign nations to supporting operations on five of the seven continents, they embody their motto as ‘The Home of Combat Airlift.’” www.talkbusiness.net

Leadership

Sixth Sense:

Key Characteristics “Courage – not complacency – is our need today. Leadership – not salesmanship.” – John F. Kennedy The words of John F. Kennedy, from his speech on July 15, 1960, when he accepted the Democratic Party’s nomination for president, still ring true today. We asked six business leaders to tell us, as they hire and train supervisors and managers, what they consider to be the most important characteristics and traits of effective leaders. By Bill Paddack

Dr. Jeff D. Standridge Vice President – Sales Acxiom Conway

Effective leaders must be able to deliver results consistently. If a leader is unable to produce the expected results individually and through others, on a consistent basis, he or she will be ineffective as a leader. Leaders must also effectively manage relationships. Nothing can be achieved consistently without the help of others. Leaders depend on the employees they lead and employees depend on their leaders. Effective leadership requires a deep understanding of this interdependency. When we focus only on results, we may achieve success very quickly until we alienate everyone who is responsible for helping us maintain these results. When we overbalance toward relationships, we will become very popular, for a while … until we lose the respect of our peers due to our inability to produce consistent results. Effectively balancing results and relationships is what I have learned to hire for and train for in my leadership team. If, in the daily grind of leadership, we can effectively manage this delicate balance, success will come more easily and be more sustained.

Cari G. White, CCE

COO Jonesboro Regional Chamber of Commerce Jonesboro

Some people are born with definite leadership characteristics; God-given talents that if used correctly can change communities, families and workplaces. Some people develop leadership characteristics through their determination to make things better for themselves and their families. I believe that all people have the potential to be a leader if they have the desire. An absolute must for me is the presence of common sense and a great work ethic. Leaders always care deeply about the mission, they are never far from the action and they pay great attention to detail. To me, a leader is someone who believes that their role in the organization is going to make or break its success. And, I have never seen a leader without enthusiasm!

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

State Rep. Reginald Murdock General Contractor Marianna

Though there are many characteristics that are needed and sought in the selection of a supervisor, I will focus on two. Effective communication: In my opinion this is the single most character trait necessary in a leader. Having the ability to understand, articulate and delineate information to staff and teammates is imperative and glaringly sets apart the average from the above average supervisor. In the selection process, I ask the candidates to define a scenario whereby they’ll execute these traits. I’ve found that this fairly simplistic approach has provided beneficial information. Passion: Passion provides the necessary resolve to endure. I liken passion to love in that it comes with many traits that have led to any success I have experienced in my life. Long suffering and patience, which are characteristics of love, are the most prominent in a successful supervisor or leader. The ability to effectively work through tough times and situations while still staying focused on the vision or goals of the organization are keys to a successful leader. Patience provides the calm necessary as you go through the various stages of growth.

Darin Gray

Georgia Mjartan

Dustin Smith, Ed.D.

Some of the most important characteristics and traits of leaders are not found on a resume. That’s not to say specific areas of expertise and skill sets are not essential. But it’s extremely hard to discern the desired character, integrity and listening skills from a piece of paper or sitting through the standard interview. When looking for good leaders, you want to know that they: • have the ability to be a part of a bigger picture; • lead by example; • can lead a group of people whose ages and experiences span multiple generations; • possess a passion for learning; and • have the ability to follow as well as they lead. These characteristics can often be more important than degrees or extracurricular activities listed on a standard resume. They are essential considerations when it comes to identifying, recruiting and hiring the right leaders for your organization.

Over the last 10 years, Our House has experienced 500% growth in the number of clients served daily, with programs for children and families the biggest driver of this growth. The changes that our organization has undergone have required many different skills from our managers. I’ve had to adjust my recruitment and people development strategies accordingly. However, I generally look for leaders who are positive, optimistic and entrepreneurial as Our House continues to grow at a rapid pace. My most successful supervisors see the strengths in their team members and are able to pull out the best qualities in those around them. I have high expectations of my managers and in turn, they have high expectations of their teams. We are constantly asking ourselves, “How can we make more of an impact on more people more efficiently?” There is urgency to the work of getting homeless people into jobs and homes, so we are always pushing each other for a very good reason. Being pushed can either be crushing or motivating for an employee. I look for managers who can make the push feel positive.

The most important traits for leadership for me include high integrity, a strong work ethic and unwavering commitment to the task at hand. Leaders must be able to see the big picture and provide a road map to get to the end destination. Hiring the right people and allowing them to do their part is an important trait of good leadership. Leaders must be able to connect with their people and this comes by being visible and spending time with those people. Leadership to me is not just seeing the mark or goal, but it is finding the right people to help navigate the path. Identification of people, doing things the right way, and allowing people to fill their role in the process are all valuable keys to good leadership in my opinion.

Chairman & CEO CJRW Little Rock and Springdale

Executive Director Our House, Inc. Little Rock

Director of Athletics University of Arkansas - Fort Smith Fort Smith

www.talkbusiness.net

Executive Q&A PHOTOS: ROBY BROCK

Daryl Bassett heads up the state Department of Workforce Services, whose mission is to enable Arkansasâ&#x20AC;&#x2122; workforce to compete in the global economy by linking a comprehensive array of services for employers and job seekers.

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

‘Finding People for Jobs’ Workforce Services Director Daryl Bassett isn’t looking for jobs for Arkansans, but rather for workers with the right skills to fill positions that are already available across the state. By Wesley Brown

aryl Bassett was named to lead the Arkansas Department of Workforce Services in December 2014 after the election of Gov. Asa Hutchinson. Bassett formerly worked as division chief for the Department of Workforce Services, served as workforce services liaison for Gov. Mike Huckabee from 1999 to 2001, and served on the state Public Service Commission from 2001 to 2010. As DWS director, Bassett leads one of the state’s largest agencies with an annual budget of $1.7 billion – a significant portion coming from federal workforce programs. He recently sat down and talked about his plans for restructuring the agency to be more responsive to the business community and the needs of the Arkansas workforce. TB&P: You were one of Gov. Hutchinson’s first hires to lead his administration. Tell us about your early conversations with the governor and what he asked of you as director of the state Department of Workforce Services. Bassett: When the governor asked me to come over to DWS, one of things he told me was that he was going to put an emphasis on workforce development. To do that, he said: “We need to get out in front of the issues, and we are going to be asking a whole lot of questions. So, what I want is accountability, transparency and deliverables, clear deliverables.” He said, “Can you make that happen?” I said, “Absolutely, if that is the direction you want me to go.” So, when we came in, those were the things we wanted to look at: How can we make the agency more accountable? How can we make the agency more transparent? And how could we look at our contractual obligations and include in those obligations

hard deliverables so we know where the taxpayers’ money was going? Workforce development is really economic development – that’s what we are talking about. We’ve had a paradigm shift here. There was once a time, back during the Huckabee administration, when the Department of Workforce Services came into being

We can provide workers for virtually any industry that wants to come to Arkansas with enough time and notice. – Daryl Bassett

Department of Workforce Services director in 1996 and 1997, we were all talking about finding jobs for people. Now, we are finding people for jobs … and that means we’ve got to have skilled people. TB&P: What are some things that you have identified in the first six months on the job that immediately needed to be looked at and changed? Bassett: Internally, one of the first things that we did was take a look at all of the contracts and memorandums of understandings that we had out there with other agencies

and outside vendors. I wanted to review those contracts to determine just what kind of deliverables were included in those contracts, how accountable were we holding our vendors, and if we had performance measures in there. In the end, we have to have performance-based contracts. We have to reward people and vendors on how they are producing. To the extent that we are able to hold them accountable. That sends a clear message to the business community that we are operating under the same principles as they are. It makes it much easier then to go to the chambers of commerce and the business community and say we need you to be an active partner with us in our workforce development efforts. We are trying to put some of the same mechanisms in place that the business community operates under. Having done that, I am seeing a tremendous increase in the level of support from the business community. There is still some level of hesitation because they don’t know how far we are willing to go in the areas of accountability because of past nonperformance, but they are willing to meet us halfway – and that is all we need. Externally, we have reached out to every chamber of commerce in the state and the State Chamber of Commerce and let them know we are open for business. TB&P: As the agency evolves, what are you doing to better market the myriad of services that the Department of Workforce Services offers – from Temporary Assistance to Needy Families (TANF) and unemployment insurance services to job training and career readiness services? Bassett: We haven’t done as good of job in the past of shaping our message to everyday www.talkbusiness.net

Executive Q&A: Bassett Arkansans. The “silver lining” there is that infrastructure for communicating that message is already in place to do that, but we haven’t done a good job in the past of selling ourselves. For example, over the last 45 days, we have brought in $7 million in grants that are going to be targeted for workforce services, job training in manufacturing, IT and health care. We have a re-employment services grant that we need to promote and tell people about what we do. The bottom line is this: We have got to re-shape that image because the big loser is the Arkansan who needs those services. We have kind of hidden (our story) and we have to let it out. We are going to take the opportunity to promote and let people know what is available here in workforce services. Just in the last three years, we’ve done more than 65,000 career readiness certificates and businesses need to know that. We’ve helped over 46,000 businesses through our job training program over the last four or five years. These are the kinds of services that people don’t know that we have. You are going to see in the next few months a re-branding of our agency and more openness to the business community because that is our logical partner. If we don’t have good relations with the business community, we are not going to be able to provide the jobs that we need in order to affect the lives of Arkansans. TB&P: Since you replaced longtime DWS Director Artee Williams, who served under both the Huckabee and Beebe administrations, how has the transition gone in reshaping with a new philosophy under the Hutchinson administration? Bassett: The transition has been relatively smooth. Most of the people that I have here are professionals and most of them have gone through several directors. They understand there is a learning curve. A new director is going to have a new way of doing things, but they are adapting well. I have retained all the principal members of the staff because they possess institutional knowledge that I need, but they have been consummate professionals. The transition

from a personnel standpoint has been relatively easy. I have not encountered any problems or reluctance to put in place any initiatives that I want to put forward. TB&P: Short-term, what is your vision for what the Department of Workforce Services will look like after your first two years as director of the agency? Bassett: Initially, what I would like to do is create a workforce development system that will be an agency where we’ll be, in the next several months, the depository for all workforce development information. We want to provide the business community and our citizens a one-stop shop. Anything that has to do with workforce development,

they will come to us or our website – and it’s there. Secondly, I would like to move toward a completely automated unemployment insurance system, where there won’t actually be a need for someone to come into workforce centers and ever apply for workforce insurance again. The only reason they would come to any office would be for some specific question for which they couldn’t find an answer online. There would be no more unemployment lines. There would be no more going out to the unemployment center (in Little Rock) and seeing people lined up around the corner. Lastly, I would like to have a new accounting system that incorporates all of our programs and links all of our systems together. We now have multiple systems functioning within one agency.

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

Those are my short-term goals for the first two years. TB&P: In the past, there have been situations where employers have said that they could not find the skilled workers they need to fill a particular position or several positions. When will Arkansas be able to say we will have the workforce to compete for any job? Bassett: I am going to shock you. I think we are there, I think we are past there. We have that ability right now, but what we have not had is effective collaboration between all of the partners that can provide those jobs or the service to develop the skills needed for any job. We have the people, but we have not collaborated between Workforce Services, Career Education, Higher Education, K-12 – we have not been talking. So, because we have not been talking, we have been looking for people and resources, but we have not turned over enough dirt. It’s just like going to Murfreesboro, there’s diamonds there – but you don’t just see them when you go out and look on the ground. You have to do a little bit of digging. But they are there, and they are here in Arkansas. We can provide workers for virtually any industry that wants to come to Arkansas with enough time and notice. We have sent people (from DWS) down to talk with Lockheed Martin officials in Camden about our workforce certificate program, which they didn’t know anything about. That tells a business that once this person goes through the program, they are ready to go to work for a certain period at a certain level – gold, platinum and all the way down. If they want welders, we have programs all over the state. If they need x number of welders, we should have an open dialogue with Workforce Services and our two-year colleges, which have welding programs across the state. We have the ability and infrastructure, but again we have not done a very good job in the past of working as a team. The governor has brought his entire cabinet together to talk about these things, so that we don’t operate in silos. So clearly, he understands where we need to go.

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www.talkbusiness.net

A collection of recent quotes by Arkansas newsmakers.

“THE UNITED STATES HAS TO SHOW – BOTH OUR ALLIES AND OUR ENEMIES IN THE MIDDLE EAST – THAT WE’RE NOT GOING TO LET RUSSIA BECOME THE MAIN ACTOR IN THAT REGION.”

– Sen. Tom Cotton

R-Arkansas, on recent Syrian airstrikes conducted by Russia

– Congressman Bruce Westerman

R-Hot Springs, on his forest management bill

I am running for re-election. I’ve got a lot of work still to do.” – Congressman Rick Crawford

“The challenge as a country … is that banking is a four-letter word.”

“It wasn’t abject poverty

– Frank Keating

Former Oklahoma Governor and American Banking Association CEO, speaking to a Little Rock audience about how Dodd-Frank legislation has vilified banks of all sizes.

like some might assume.”

– Arkansas Agriculture Secretary Wes Ward

on conditions he saw in Cuba while on a recent trade trip with Gov. Asa Hutchinson.

“The sapling will grow. People will come. But the children can never be allowed to forget. And we can’t forget something else. We shouldn’t have to have a killing to be reminded of our common humanity.” – Former President Bill Clinton

on the Holocaust, as he spoke at the grand opening ceremony of the Clinton Presidential Center’s new permanent installation, The Anne Frank Tree, located in front of the center.

“We are affirming to our fans that

yes, we have heard you,

“His vision for America and his ability to expand the electorate makes it easy for me to make the sacrifices it takes to help him win. Marco Rubio is the future of the Republican Party.”

– Impact Management Group’s Clint Reed who was hired as Rubio’s campaign director in Iowa.

“Entrepreneur life is the only place where both steps forward and steps back bring you closer to your goal.” – Advice from

Cara Brookins

author and entrepreneur.

TALK BUSINESS & POLITICS | NOVEMBER/DECEMBER 2015

and we are bringing back the flavor that has been requested more than any other.”

– Kevin Boyle

CEO of Schulze & Burch Biscuit Co., owners of Yarnell’s Ice Cream, announcing the return of the popular Wooo Pig Chewy, along with another Razorback-themed flavor, Hog Wild for Cookie Dough.

“

After months of evaluation, we’ve concluded there is an opportunity to better position our Home Office teams to move with speed and purpose. This results in 450 associates being displaced today.” – Wal-Mart CEO Doug McMillon on layoffs at corporate headquarters.

save live

Grow.

plan

At Deltic Timber Corporation, we believe in a harmonious balance of environment and expansion. And this philosophy is backed by our responsible management of hundreds of thousands of acres of sustainable forests. All of our communities â&#x20AC;&#x201C; Chenal Valley, Chenal Downs and Wildwood Place in Little Rock, and Red Oak Ridge in Hot Springs â&#x20AC;&#x201C; are designed to embrace nature and sustainability. Theyâ&#x20AC;&#x2122;re also designed to provide the convenience and amenities you appreciate in comfortable living. Why? Because the best communities in the Natural State are the ones that help keep it that way. DelticDevelopments.com | 501.821.5555

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Deltic Timber Corporation is a natural resources company engaged in the ownership and management of timberland. The Company also develops to its highest and best use residential and commercial properties in Little Rock and Hot Springs, Arkansas, through its subsidiary, Chenal Properties, Inc. Deltic is publicly traded on the New York Stock Exchange under the symbol DEL.

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