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Wal-Mart exec Leslie Dach announces exit (Updated)

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story by Kim Souza
ksouza@thecitywire.com

Leslie Dach, executive vice president of Corporate Affairs for Walmart, is leaving the big box giant in June. He is the second top ranking officer from within Wal-Mart’s inner core leadership to announce departure in the past two weeks.

Walmart US CEO Bill Simon announced Feb. 27 that Tom Mars, executive vice president and chief administrative officer, will exit the company March 13. Mars has been with Wal-Mart for 11 years and served as general council during the period under scrutiny for violations of the Foreign Corrupt Practices Act.

The announcement that Dach is leaving was made internally via an email from Wal-Mart Stores CEO Mike Duke on Friday morning (Mar. 8). The memo states that Dach, who resides in Washington, D.C., still has much to accomplish in the next two months ahead of his exit.

Duke states in the memo: "As some of you may know, Leslie has been commuting between Bentonville and his home in Washington D.C. nearly every week during this time. As he said when he first approached me several months ago, 'There is no perfect time to end a journey like this one but there is a right time – and with so many good things happening and so much momentum for them to continue, this feels like that time.'"

Duke notes that Dach has played a pivotal role in helping Wal-Mart understand the broader role it can play in meeting the major challenges facing society today, and social goals are now an integral part of how we run the business.

"He has challenged us to think big and, under his leadership, we have broken new ground in areas like sustainability, women’s economic empowerment and hunger and nutrition. He has built a strong team who will continue to help us use our scale and unique capabilities to make a big difference in the world. Leslie has also helped Walmart lead the way for other companies to step up and determine how they can make their own impact

"Even beyond June, I’ve asked Leslie to stay engaged with us and provide counsel across a number of areas," the memo states.

Duke said Dach’s replacement search will begin immediately.

Dach joined Wal-Mart in 2006 serving in government relations for Wal-Mart China as well as being responsible for public policy, reputation management, corporate communications, philanthropy, government relations, and the company's social responsibility and sustainability initiatives.

Then Wal-Mart CEO Lee Scott reached out to Dach in 2006 for his leadership in reputation management as well as facilitating the company’s sustainability initiative which Scott championed.

Wal-Mart’s reputation took a beating last year with the news the retailer was under investigation for violations of the Foreign Corrupt Practice Act in Mexico, with further probes in China and India. However, company shares (NYSE: WMT) have proven resilient. The share price hit a new high of $77.15 in mid-October. During the past 52 weeks, the intraday share price has ranged between a $77.60 high to a $57.18 low.

Before joining Wal-Mart, Dach was vice chairman of Edelman, a major global communications firm, where he led the Washington, D.C., office, the company's research, advertising and corporate social responsibility consulting divisions and its global public affairs, crisis, technology and health care practices.

“Dach has been active as a strategist in Democratic politics and worked in senior positions in a number of presidential campaigns. He served the Clinton administration in a variety of project capacities,” notes the Dach bio on the Wal-Mart website. “He has also served on the government relations staffs of the National Audubon Society and Environmental Defense Fund, and as special assistant to the chairman of the U.S. Senate Agriculture Committee.”

Dach earned a bachelor's degree in biology from Yale University and a master's in public administration from Harvard University. Dach also serves on the board of directors of the World Resources Institute.

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Arkansas home sales up almost 15% in January

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Three of Arkansas’ four largest metro areas posted double-digit gains in the number of homes sold in January, with the combined number of homes sold measured by the Arkansas Home Sales Report up 14.8% in January compared to January 2012.

January home sales in the Fort Smith metro area were down almost 20%, with the average home sales price down 11%. Home sales were up 25.85% in central Arkansas, up almost 25% in the Jonesboro area, and were up 7.04% in Northwest Arkansas.

The City Wire’s Arkansas Home Sales Report captures home sales data in the state’s 14 most populated counties within the state’s four largest metro areas — Central Arkansas, Fort Smith area, Jonesboro/Northeast Arkansas and Northwest Arkansas. The report, which records closed sales, accounts for between 70% and 75% of total Arkansas home sales. The report counts the number of sales closed in January.

The total value of homes sold in the four markets during was $167.644 million, up 11.98% compared to January 2012, and up 19.43% compared to January 2012. The average sales price of a home sold in the four markets during January was $153,380, down 2.47% compared to January 2012, but up 4.24% compared to January 2011.

The average days on market for a home in the four combined markets during January 2013 was 98.35, an improvement over the 106.54 during the same period of 2012.

THE REGIONAL PICTURE
Central Arkansas — Home sales
Jan. 2013: 555
Jan. 2012: 441
Jan. 2011: 406

Fort Smith area — Home sales
Jan. 2013: 71
Jan. 2012: 88
Jan. 2011: 96

Jonesboro area — Home sales
Jan. 2013: 102
Jan. 2012: 88
Jan. 2011: 96

Northwest Arkansas — Home sales
Jan. 2013: 365
Jan. 2012: 341
Jan. 2011: 335

The top five counties in terms of January 2013 home sales:
Pulaski — 238, up compared to 214 in 2012
Benton — 217, up compared to 201 in 2012
Washington — 148, up compared to 140 in 2012
Faulkner — 97, up compared to 48 in 2012
Saline — 88, up compared to 60 in 2012

Link here for a PDF document of the January 2013 data.

‘SPOTS OF OPTIMISM’
Economist Jeff Collins said a trend in Arkansas housing markets has taken hold – sales improved in many areas of the state last year and that state of affairs should continue in 2013.

“I don't see anything that will have a substantial effect on the trend,” he explained.

However, Collins said not all markets in Arkansas are improving.

“I think there are certainly some spots of optimism,” he said. “In Northwest Arkansas, there's reason to feel pretty good. You've got building activity and (housing inventory) absorption going on. … In central Arkansas, growth is going slowly.”

Fort Smith, on the other hand, is still struggling. He said Fort Smith was hard by the recession and is still recovering from the loss of manufacturing jobs.

“In Arkansas, (areas) that were doing well prior to the recession are doing well now, those that were struggling still are,” Collins said.

He said “big drivers of demand” for commercial and residential real estate aren't in place yet. Unemployment remains a concern in most areas of Arkansas and that people who aren't working or comfortable in their jobs aren't likely to purchase homes.

Collins said the jobs outlook is still murky due to businesses being forced to cut costs over the past few years.

“Because of technology, a lot of businesses have figured out how to produce with fewer workers,” he said. “Companies have gotten lean. They've utilized technology, cut costs and have gotten down to the point where there isn't a lot of fat left on the payroll. … They made big investments in equipment and software. A lot of processes were automated.”

Although Arkansas real estate markets have been hit with tight lending standards and a slowly recovering job market, Collins said markets have stabilized and should continue to grow slowly in most areas of the state. He said a spike in mortgage interest rates in the near future is unlikely and homes remain affordable.

REGIONAL PERSPECTIVES
Velda Lueders, a Realtor with Pam McDowell Properties in Conway, said most of those closings were from deals finalized in December. She said December was a great month for her, adding that her activity has slowed down in January and February.

Still, she said low interest rates and attractive prices helped buoy markets in 2012 and expects that trend to continue this year.

“I think people, in general, just feel better about the economy,” she said.

Danny Ladd, a Realtor with Fred Dacus Associates in Jonesboro, said he has also noticed that people are more optimistic about the economy.

“I've been blessed. I've got business happening, I've got business coming. It's looking good to me,” he said, adding that not much has changed in terms of home prices or interest rates over the past couple of years. “It's got to be the attitudes of the buyers.”

Clif Warnock, veteran broker and owner of Warnock Real Estate in Fort Smith, said homebuyer demand is stable. He said consumers with a job and decent credit can still secure mortgages.

He said his firm’s sales were up sightly in 2012, despite all the negative economic news at home and on the national scene.

“Personally we had a pretty strong year, but our agents work really hard on a full-time basis. We didn’t see any major setbacks in 2012 from tighter credit,” he said.

Paul Bynum, statistician with MountData, reports an ending inventory in Northwest Arkansas of 3,135 homes listed for sale in January. That included 313 new construction homes and 2,822 existing homes. Inventory is down 57% from the all-time high in August 2007, and 11% lower than a year ago.

George Faucette, CEO and co-owner of the Coldwell Banker franchise in Northwest Arkansas, is happy with the Northwest Arkansas momentum.

“Our January closed business was about 20% higher than January 2012. We are still in the slower winter season (for residential business); but if January is a decent indicator, 2013 will result in a healthy increase in sales,” Faucette said.

THE 2012 PICTURE
Home sales in the four markets during 2012 totaled 18,221, up over the 17,851 during 2011 and up almost 3% compared to 2010. The Northwest Arkansas market topped 6,000 home sales in a year for the first time since 2007.

The combined home sales value in the markets during 2012 reached $2.975 billion, up 10.87% compared to 2011 and up 9.99% compared to 2010.

Regionally, the number of homes sold during all of 2012 are up in central Arkansas and Northwest Arkansas, and down in the Fort Smith and Jonesboro metro areas.

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Craig Pair to speak at ATU-Ozark leader series

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For the 2013 installment of its “Leaders in the Industry” speaking series, Arkansas Tech University-Ozark Campus will have Craig Pair talk with students Thursday, March 28.

Pair, a native of Fort Smith and owner of Control Technologies Inc. (CTI), Hi-Tech Products Inc. and CAP Investments LLC, will speak at 2 p.m. in the Student Services Conference Center.

Former speakers in the series include Jon Harrison of Little Rock, Joe Schluterman and Mike Koehler of Paris, and Matt Szymanksi of Morrilton.

Pair is a graduate of Southside High School and Westark Community College (now the University of Arkansas at Fort Smith), where he was awarded an Associate of Applied Science in Electronics.

Out of college, he started Craig’s Video Repair, where he fixed arcade-style video games, pinball machines and jukeboxes. Later he was introduced to the industrial control world and in 1988, “seeing a need,” started CTI, which “provides customized industrial hardware and software solutions for industrial process controls to wide range of customers – locally, nationally and internationally,” he said.

In 2000, CTI was selected as the Small Business of the Year (for companies under 25 employees) by Arkansas Business.

In 2005, Pair started Hi-Tech Products to further develop the products division of CTI, and he started CAP Investments as a real estate development firm.

His other passion is community involvement. Pair is the past president of the Christ the King School Board, and the past president of the Christ the King Parish Council, for which he spearheaded several community projects as a Rotarian.

He recently finished as chairman of the Bass Reeves Legacy Initiative that secured funding for, and eventually erected, a statue in honor of Deputy U.S. Marshall Bass Reeves.

Also, Pair is a graduate of the 2005 class of Leadership Fort Smith, for which he also served as a board member. He was on the original working group for the Innovation and Entrepreneurship Center, and is also involved with the Partner in Education Program for Fort Smith Public High Schools.

Pair and his wife, Anita, have been married 26 years. They have three daughters: Sarah, Rachel and Hannah.

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Rural loan program loss could hurt NWA, Fort Smith area

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story by Kim Souza
ksouza@thecitywire.com

Like all things deemed too good to be true, local homebuyers will have one less financing option as they seek out mortgage loans after March 27.

The rural development loan program, which offers 100% financing to lower income families will be off the table throughout much of Northwest Arkansas and more areas near Fort Smith because of population growth in recent years and tighter government purse strings.

Mortgage lender Walt Fenton, with First Security Bank in Rogers, said the population growth throughout much of Benton and Washington counties which is reflected in the 2010 federal census will mean few areas will be eligible for the program in the future.

In Washington County, Elm Springs stands to lose its eligibility as does Van Buren in Crawford County, according to local lenders.

“Bentonville, Bella Vista, Centerton, Cave Springs, Lowell, Siloam Springs and Bethel Heights, all of which had been part of the program are now considered either too large by city population, or too close to a larger metro area to qualify for the rural development option,” Fenton said.

While Fenton has not seen a large number of RD loans come through his department in the last year, he does expect some marginal impact if the proposal is approved.

“The primary reason we haven’t seen as many RD loans of late is because the income levels to qualify are pretty restrictive – $74,700 for a family of up to four. We have done more business with the Arkansas Development Finance Authority program because it is less restrictive,” Fenton said.

The ADFA “home-to-own” program has income criteria of roughly $81,000 for a family of three and is not restricted by higher population growth. This program provides up to $6,000 in down payment assistance and closing costs for qualifying buyers.

The interest rate is 3.25% with a 1% origination fee to the lender. About 40 lenders are set up to utilize this grant program, according to Murray Harding director of the ADFA home ownership programs.

Harding says the ADFA does have down payment assistance programs for low and lower income homebuyers and the money is funded privately through the secondary market with very little risk of being cut out in the near term. These programs do not have  location stipulations as seen with the RD program.

Harding said Van Buren is especially attractive for the down payment assistant programs because there is not a first-time homeowner requirement in this targeted area.

The rural development loans are one of the few “no money down” mortgages left in the country and a number of local real estate agents will say the mortgage product is directly responsible for population growth in several counties around the state – perhaps none greater than Benton County.

Justin Moore, mortgage lender with Metropolitan National Bank in Rogers, said roughly 8% of the loans he is processing are part of the RD program.

“I hate to see this program lost in so much of Benton County, when it’s one of very few 100% finance options for buyers today,” Moore said.

Catherine Maxey, agent with REMAX Realty Results, said the loss of the program will mean more prospective homebuyers will have to make other arrangements for a down payment.

“That will mean some will have to save or borrow from family members the 3.5% minimum down payment required for FHA loans. In the short term, the potential loss of this program has pushed some buyers to act now. But in the future they may have to figure out other ways to cover 3.5% downpayment needed for FHA qualification,” Maxey said.

It has been nearly 20 years since the rural development guidelines were revised. With federal budget cuts looming, most of the experts interviewed believe the RD program changes will stand when the final revisions are released March 27.

Sheila Colvin, Liberty Bank mortgage lender for Western Arkansas, said the program loss will be huge in Van Buren and Russellville as both are expected to ineligible when the new guidelines.

“I hate to see the loss of another loan product and do believe it will impact home sales in the effected areas. In Crawford County, Alma would still be eligible and in Sebastian County, Greenwood, Charleston and Bonanza are also still eligible,” she said.

The City Wire requested a list of the areas in Western Arkansas that will be impacted from the proposed changes. The RD offices in Bentonville, Little Rock and Washington D.C. were each contracted and none of these agency offices provided the data requested between Friday, Mar. 8, and Monday, Mar. 11.

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Medical care on demand more prevalent in NWA

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story by Jamie Smith
jsmith@thecitywire.com

It used to be that if you lived in Northwest Arkansas and got sick, you either had to wait to get in to see your primary doctor or, if you needed more immediate attention, you went to the emergency room.

In the last decade or so, that scenario has changed as there has been an increase in clinics with expanded hours, walk-in clinics and urgent care clinics. Some of the offerings are through the region’s two major health systems: Mercy and Northwest. Others are privately owned clinics that have opened as the need for such services has increased.

Mercy Health System has had its Convenient Care clinic in Northwest Arkansas for more than 15 years, said Cindy Bosley, executive director of clinic operations at Mercy NWA.

“We saw a need in the community for treating acute illnesses (cough, cold, flu, simple injuries etc.) during regular hours as well as after most of our clinics were closed,” she said. “Opening this clinic helped give our patients a less expensive alternative to an emergency room visit for illnesses that could be treated in an outpatient setting.”

Mercy plans to expand its convenient care hours and urgent care offerings in the future, she added.

SAVES MONEY
By not going to the emergency room for common illnesses or minor injuries, patients are able to save a lot of money, clinic and hospital officials agree. Most after-hours clinics are considered the same level of service as a doctor visit and are billed as such.

Urgent care clinics typically offer expanded services not found in a standard doctor’s office. Insurance policies vary on how they reimburse for urgent care services. Some policies have a separate co-pay for urgent care that is usually more than a standard doctor visit co-pay. Other insurance policies require that all urgent care services be applied to the client’s deductible.

“By providing this service we have reduced the usage of our emergency department for illnesses that could be treated in an outpatient facility. By expanding our hours in urgent care/convenient care we will further help free up the emergency room for true emergencies as well saving our patients a lot of money in care that does not need to occur in an emergency room setting,” Bosley said.

She also said the after hours facilities “will save our patients, literally, thousands of dollars in medical care.”

Our goal is to educate our patients to understand that this setting is a better alternative when an emergency room visit is not actually needed,” Bosley explained.

INCREASING OPTIONS
Dan McKay, CEO of Northwest Health Systems, gave the example of a father who was at one of his son’s sporting events. The son was injured and the father was going to take him to the ER. McKay told him that they had a clinic just down the street that had x-ray capabilities just like the ER but would be faster and much less expensive.

“It acted just like an emergency room in that case,” he said.

Northwest has several clinics throughout the region that offers walk-in access or has expanded hours to accommodate people who need later services.

“That is how the demographics have shifted and healthcare has gone that way. It’s like Starbucks. They want it now and they want it close,” he said.

The growth in Northwest Arkansas has made the need for more healthcare providers and healthcare options necessary, he said.

Northwest also operates the Care Express located in the Walmart on Pleasant Grove Road in Rogers. The Care Express offers walk-in services for minor, acute problems. The Care Express located in Fayetteville closed earlier this month.

Not all clinics have walk-in hours available, but many offer expanded hours. The Community Care Clinics offered in Springdale, Rogers and Siloam Springs offer extended hours at least one night a week, said Kathy Grisham, executive director. Many of their patients don’t have the ability to take off work during the day to see a doctor and others work shifts that don’t make traditional doctor hours convenient.

“You never want someone to not seek healthcare because they might lose their job,” she said. “We also don’t want them to not have a regular medical home because it’s not available.”

QUALITY OF LIFE
Access to healthcare is a major quality of life issue, regional economic development officials agree. Although after hours care and urgent care are not business areas that they specifically recruit for, they do promote what is already available and have worked with existing facilities to find locations for expansion.

“(The clinics) offer more availability and more options,” said Steve Cox, economic development director for the Rogers-Lowell Area Chamber of Commerce.

Recruiting specifically for the walk-in or urgent care option hasn’t been necessary largely because healthcare providers are seeing the need and meeting it on their own.

The local healthcare providers seem to be looking at the market for opportunities for greater access to health care in the form of urgent care and after hour clinics,” said Tom Ginn, director of economic development for the Bentonville/Bella Vista Chamber of Commerce. “It will continue to evolve I am sure and with the Affordable Health Care Act gradually coming on line, we will see if the business model supporting these type clinic will work.”

Chung Tan, manager of economic development for the Fayetteville Chamber of Commerce, agreed that the walk-in clinics and urgent care clinics are having a positive impact on overall healthcare costs.

“The increase of after hour/urgent care service should reduce visits to the emergency rooms thereby reducing overall healthcare costs for the industry,” she said. 

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Former Fayetteville roofer fined more than $137,000

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Attorney General Dustin McDaniel announced Tuesday (Mar. 12) that a Pulaski County Circuit Court Judge James Moody has ordered the owner of a now-defunct Fayetteville roofing company to pay more than $137,000 over allegations that he took money from at least 19 Northwest Arkansas homeowners and failed to make any repairs.

Judge Moody ordered Shawn Redmond, who owned Razorfast Roofing and its predecessor, Razorback Roofing, to pay $109,144 in fines and costs to the State and $28,136.98 in restitution to affected homeowners. The order filed today follows a hearing that was held last month regarding McDaniel’s lawsuit alleging Redmond had violated the Arkansas Deceptive Trade Practices Act and the Arkansas Home Solicitation Sales Act.

“Mr. Redmond and his company said they would help homeowners recover from storm damage, but delivered nothing but empty promises,” McDaniel said in the statement. “Not only did he take their money, he jeopardized some homeowners’ insurance coverage because he never completed the repairs required by the insurance company.”

Redmond used aggressive telemarketing to target homeowners in neighborhoods where storm damage had occurred. Consumers signed contracts for the roofing work and turned over insurance proceeds to Razorfast, which either unreasonably delayed work or failed to provide the repairs at all.

The suit also alleged that Redmond’s company refused to refund consumers’ money when the consumers exercised their right to cancel their agreement with his company under provisions of the home solicitation sales law.

Last year, Redmond was found guilty in Washington County Circuit Court on multiple counts of theft by deception. He was also ordered to pay restitution to consumers in that case.

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Oaklawn, Southland set record EGS wagers

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story by Roby Brock, a TCW content partner and owner of Talk Business
roby@talkbusiness.net

The latest statistics released by the Arkansas Racing Commission show that casino-style gambling at Oaklawn and Southland set new all-time monthly records in February.

Both tracks saw nearly 14% increases in electronic games of skill (EGS) wagering in February versus the previous year.

Hot Springs-based Oaklawn posted February 2013 EGS wagers of $92.7 million, a 13.7% increase from February 2012. The figure was the highest one-month EGS total in Oaklawn history.

West Memphis-based Southland totaled $197.4 million in EGS wagers in February 2013, a 13.9% uptick from the previous year. Again, the figure was the highest one-month EGS total in Southland history.

Year-to-date in the first two months of 2013, the two tracks have already eclipsed a half-billion dollars with total EGS wagers topping $518.21 million.

Oaklawn’s two-month total in 2013 passed $172.54 million, up from $146.83 million one year ago. Southland’s two-month total in 2013 surpassed $345.67 million, up from $304.75 million in early 2012.

EGS wagers include gambling spent on video blackjack, poker, slot machines and other casino-style games.

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Greenwood group to look at annexation options

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story by Ryan Saylor
rsaylor@thecitywire.com

The once-quaint town of Greenwood has morphed into a thriving small city situated along U.S. 71. If city officials get their way, Greenwood could soon be growing beyond its current borders.

Sonny Bell, Greenwood’s director of Planning and Community Development, said the city is ready to explore extending the city limits to more rural parts of Sebastian County.

"This has been being talked about for many years," he said. "It goes back before my time with the city, as far as expanding the city limits out to some of our planning jurisdiction land."

Any decision pursuing annexation rests with a committee scheduled to meet on March 28. The group will include a cross-section of the Greenwood community, according Bell.

"We are putting together an annexation committee with representatives from the school, the financial (sector) of Greenwood and people who have expertise in annexation," he said. "It's what they feel like would be in the best interest of Greenwood."

As far as where that could extend the city's borders, Bell said he was not entirely sure.

He said he expects the group to explore annexing land west toward Hackett, south toward Highway 10 and possibly north up to Jenny Lind.

But any plans to go further north of Jenny Lind would be unlikely, according to Fort Smith City Administrator Ray Gosack.

"The two communities many years ago had discussions on how far each would grow and it was generally recognized that Greenwood would grow to the Jenny Lind/Bear Hollow Road area and Fort Smith would grow to the areas north of there," he said, adding that Fort Smith currently serves as the water utility for the area.

In order to ensure that Greenwood does not encroach on property belonging to another municipality, or is in breach of previous agreements, Bell said there will be a thorough review of any proposed annex by a lawyer.

"We would lean on our legal counsel for those kinds of answers," he said. "That's one of the questions we'll be asking — how does this process work, what happens if and what is plan A, plan B and all of that."

Another issue that will have to be addressed if Greenwood pursues annexation is whether the city is able to provide police and fire protection to areas served by Sebastian County. It is not only about whether the city could provide the protection, but how much providing the protection would cost taxpayers, Bell said.

"Would there necessarily be a need for additional officers? What about fire departments? These areas have rural fire departments that are very good organizations. Would they carry on or be incorporated into the Greenwood Fire Department?"

Sebastian County Judge David Hudson said it is too early to tell how the annexation would affect residents who currently depend on the county.

"The county's responsibilities are modified — whether that means less roads to maintain or less residences in the 911 system," Hudson said.

Ambulance service could still be provided by the county, Hudson said, before stating it would be "based on the specifics of the land being annexed and the homes/properties being serviced."

Bell said city officials were under no illusion regarding additional costs the city could incur by annexing land. But he said should the city annex land on or near what will become Interstate 49, any development that occurs along the highway should provide the city with additional sales tax revenue.

"You're going to provide the services and you'll have to have the money coming in to provide services," he said. "I-49 coming in will increase the chances of retail businesses in this area."

Any decision for annexation will have to be decided on by a vote, Bell said.

"The county has to approve it," he said. "It goes through an election process."

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Northwest Health adds two new geriatric specialists

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Drs. Jose Fontanilla and Maria Judit, each board-certified in geriatrics, recently joined the medical staff of Northwest Health System, practicing at Northwest Senior Health Schmieding Center.

The clinic is located at 2422 N. Thompson, Suite A, in Springdale.

“We are excited to welcome Drs. Fontanilla and Judit,” Dan McKay, CEO of Northwest Health System said.  “This specialty is increasingly important to our community as the population ages and that aging population lives longer.”

Fontanilla has been in practice more than 20 years. He received his medical education at the University of Santo Tomas in the Philippines and completed his internal medicine residency at University of Illinois Medical Center in Chicago, Ill. He also completed a fellowship in geriatric medicine at Loyola University Medical Center/Hines VA Hospital in Maywood, Ill.

Judit has been in practice more than 15 years. She received her medical education at University of Santo Tomas in the Philippines and completed her internal medicine residency at Ravenswood Medical Center in Chicago, Ili. She then completed a geriatrics fellowship at Loyola University/Hines VA Hospital in Maywood, Ill.

These doctors are board certified in geriatric medicine by the American Board of Internal Medicine.

 

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Arkansas, Oklahoma to study Illinois River Watershed

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story by Ben Pollock, special to The City Wire

As a follow-up from a Feb. 20 announcement in Little Rock, Arkansas Attorney General Dustin McDaniel said Wednesday (March 13) during a stop in Fayetteville that the state and Oklahoma soon will begin a scientific study to establish an attainable, safe phosphorus level in the Illinois River.

Lake Tenkiller in northeast Oklahoma is part of the Illinois, which flows through both states and ends in Oklahoma. The two states have been at odds for some three decades over water quality in the watershed.

Oklahoma’s previous attorney general, Drew Edmondson, filed a federal lawsuit in 2005 against 14 poultry firms – including Tyson Foods Inc. and Georges Inc. of Springdale and Simmons Foods Inc. of Siloam Springs – alleging that water run-off from farming operations was contaminated from their use of poultry litter as fertilizer. The material is poultry bedding material such as sawdust soiled by manure. The outcome of the suit is pending in U.S. District Court in Tulsa.

McDaniel explained at Fayetteville City Council Chambers that a 10-year agreement between the two states to lower the watershed's phosphorus content to 0.037 milligrams per liter of water ended last June and that they have been negotiating a new agreement.

"Over those 10 years, the cities and businesses of Northwest Arkansas have in fact spent hundreds of millions of dollars to reduce the phosphorus level from 5 to 10 milligrams per liter to 1 and even less than 1. That is an enormous environmental success story in and of itself. Furthermore, that number is still dropping," McDaniel said. "However, it is not possible to reach 0.037 anytime soon. Any attempt to comply would be enormously expensive."

He called the 0.037 milligram per liter standard unrealistic from the beginning.

"As with any environmental regulations, the costs should not be imposed on the citizens unless one can initially prove that the burden is justified and that the goals are based on sound science. In this case, it is our position 0.037 is neither reasonable nor attainable. Nor was it fairly calculated in the first place. The standard was based on a methodology that did not accurately reflect the actual needs of the environment of the region," McDaniel said.

One purpose of the new agreement, signed by McDaniel and Oklahoma Attorney General Scott Pruitt and initially announced Feb. 20, is to end the costly litigation.

"Our simple goal on this issue has not changed," McDaniel said, which is to improve "our common environment and our common economy." He added that tens of thousands of Oklahomans work in the poultry industry as well as Bentonville-based Wal-Mart Stores Inc.

The "stressor-response study" will take three years of work by a group of qualified scientists and that the states will be bound by their analysis. A six-member board will be appointed to set parameters for the study and the standards by which to hire the consulting company of scientists. The states' governors each will appoint three board members.

"We expect the cost to be well under $1 million," McDaniel said of the study.

The Feb. 20 announcement said the cost would be about $600,000.

Aaron Sadler, press secretary for the attorney general's office, said later that the purpose of the area news conference was an opportunity for McDaniel to take questions on the study and last month's two-state agreement.

Randy Young, executive director of the Arkansas Natural Resources Commission, said after the Fayetteville news conference that Arkansas Gov. Mike Beebe likely has the three chosen and will announce them soon.

Young said the watershed's toxicity level was an ongoing issue he addressed on his first day as commissioner, in 1985. The first step in starting this process, he said, "is to make sure we have the money. Then we set up the six managing directors."

McDaniel said the funding would come from the state as well as Northwest Arkansas governments.

"We are better as partners than we are as opponents," McDaniel said of Arkansas and Oklahoma several times.

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Arkansas Governor's Cup finalists, semi-finalists named

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Several teams from Northwest Arkansas made it to the finals in the 13th annual Donald W. Reynolds Governor’s Cup Collegiate Business Plan Competition.

The finalists, announced Wednesday (Mar. 13), will pitch their business plans to business execs on April 4, at The Chancellor Hotel in Fayetteville. Each team is allowed a 20-minute oral presentation with 15 minutes allowed for questions.

Up for grabs are $154,000 in cash prizes, and the top two graduate and undergraduate teams will compete in the Tri-State Competition in Las Vegas. Teams from Oklahoma and Nevada will participate in the competition for a portion of $118,000 in available winnings. The Arkansas teams advancing to Las Vegas will be announced April 10 at an event in Little Rock.

Conducting the Arkansas Governor’s Cup is the Arkansas Economic Acceleration Foundation, an affiliate of Arkansas Capital Corp. Talk Business is a Chairman-level sponsor for the competition.

Following are the finalists and semi-finalists in the respective categories.

Undergraduate Innovation Finalists
LifeB – Harding University
Nat Gas Solution – University of Arkansas at Fayetteville
Practical Homecare Device – John Brown University

Graduate Innovation Finalists
EverClean Coating Solutions, LLC – University of Arkansas at Fayetteville
HomeDx – University of Arkansas at Fayetteville
Iso Labs – Harding University

Undergraduate Agriculture Finalists
ARAquaFarm, LLC – Arkansas State University, Jonesboro
Catch-22 – University of Arkansas at Little Rock
Smart Feeder – Harding University
Smart Soil – John Brown University

Undergraduate Semi-Finalists
50/50 One Eighty – University of Arkansas at Fayetteville
Aerial Advantage Photography Services – Henderson State University
AgWell, Inc. – Harding University
Catch-22 – University of Arkansas at Little Rock
eScout – Ouachita Baptist University
Innovative Medical Sensor Tech – Harding University
MedBase – Harding University
Practical Homecare Devices – John Brown University
Smart Feeder – Harding University
Smart Soil – John Brown University
Stuffed Burritos – Ouachita Baptist University
TrustedWills.com – Ouachita Baptist University

Graduate Finalists
EverClean Coating Solutions, LLC – University of Arkansas at Fayetteville
HomeDx – University of Arkansas at Fayetteville
Iso Labs – Harding University
MitoGene, LLC – University of Arkansas at Little Rock
ParadigMed, LLC – University of Arkansas at Fayetteville
Picasolar – University of Arkansas at Fayetteville

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New boss named for Sparks Health, Summit Medical

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Naples, Fla.-based Health Management Associates has selected a veteran hospital administrator as the new CEO for Sparks Health System in Fort Smith and Summit Medical Center in Van Buren.

Blan, who retired Jan. 1, 2008, as president and CEO of Saint Clare’s Health System in Tulsa, is expected to begin the new job on March 19.

When he retired from his post in Tulsa, Blan had 35 years in the medical field, with 27 of those as a CEO of a hospital or health system, according to a Saint Clare’s statement.

Blan has also served as the president and CEO of Mercy Health Center in Oklahoma City, and the president of Mercy Hospital also in New Orleans.

He succeeds Melody Trimble who was promoted to president of the HMAs Southern and Western Group, which includes 26 hospitals in seven states. Trimble’s promotion was effective Jan. 1, 2013. The seven-state region is Alabama, Arkansas, Mississippi, Missouri, Oklahoma, Texas and Washington.

Trimble joined Sparks Hospital in the fall of 2009, after the hospital was purchased by HMA in a $138-million deal that closed Nov. 30, 2009.

“I am confident that Gary’s energetic, innovative, open and results-oriented leadership style will fit perfectly with the servant leadership culture we have established at Sparks and Summit and that he will continue building upon the success we have established,” Trimble said in a statement.

Blan received a master’s degree in healthcare administration from Washington University School of Medicine in St. Louis, and a bachelor’s degree in business administration and journalism from Southern Nazarene University in Bethany, Okla. He also served in the Army and Air National Guard.

“I’m excited about the potential Sparks and Summit have to be the healthcare leaders for Arkansas and Eastern Oklahoma,” said Blan, who is a Fort Smith native.

Sparks Health System includes Sparks Regional Medical Center, Sparks Clinic (an employed multi-specialty physician group), Sparks PremierCare physician-hospital organization, Sparks Home Health and the fully hospital-integrated Marvin Altman Fitness Center.

Summit Medical Center is a fully accredited, 103-bed acute care hospital.

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Van Buren utility revenue hurt by Allens loss

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story by Ryan Saylor
rsaylor@thecitywire.com

The loss of Allens Canning Company in Van Buren is not only going to leave scores of locals unemployed, it will also cause a sizable dent in the budget of Van Buren Municipal Utilities, according to the utility's director Steve Dufresne.

Allens is the utility's largest customer, consuming about 900,000 gallons of water per day, he said.

"(Their business) is up to $1 million per year," Dufresne added.

The large amount of water usage amounts for nearly 15% of the utility's business each year, he said.

The company announced Feb. 28 that Van Buren production would be consolidated with an Allens canning operation in Siloam Springs. The move resulted in the loss of 150 jobs in Van Buren.

Losing such a large customer is unlikely to affect projects already in the works for the next few years, such as replacing 115-year-old waterlines in older sections of the city, Dufresne said.

"Those projects have certain amounts of money reserved for (the waterline replacement) already in that sales tax," he said.

The waterline replacement has been a priority of the city, he said, which is why it is likely to move forward, Dufresne said.

"But what it will affect is other projects. That's really the bottom line right now, is it's too early to look at potential rate increases,” he said.

Any potential budgetary impacts will likely take place beginning with the 2014 municipal utilities budget, he added.

The city of Van Buren is likely to face a double-whammy with regards to the closing of Allens, according to Mayor Bob Freeman. Not only will the city's utility take a big hit, but the city itself will take in less taxes.

But while the utility is able to estimate a worst-case scenario, Freeman said the city has been unable to calculate accurate figures.

"That's because when those numbers go in, a lot of it's confidential as far as what their piece is," he said, explaining that the city is not privileged to Allens' specific franchise tax payments. "We can't say there's going to be an impact on franchise fees."

The only bright side, if there is one, for the city is that Allens does not plan to sell or disassemble its Van Buren facility, Freeman said.

"The indications were when they originally talked to us is to leave (the factory) there, mothball it," he said.

By leaving a fully-intact facility in place, the appraised value of the property may maintain its value, thereby not reducing the company's property tax obligations to the city. But Freeman said there are still too many questions and not enough answers.

"I don't know on the property tax what that impact is. There's still a value attached to it," he said.

Dufresne said the impact to the utility and the city will become more clear in the coming months.

"Right now, there's so much that is potential," he said. "But I do know if the scenario I'm looking at (for) 2014, if I take their usage out of the picture, (that is) what I'm going to start budgeting."

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Average: 3.7(3 votes)

CaseStack goal is to boost supplier efficiency

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story by Kim Souza
ksouza@thecitywire.com

Getting a product on Wal-Mart’s shelves is an accomplishment for sure, but it’s not just getting there that counts. That product also has to sell and be replenished efficiently or suppliers run the risk of being rooted out by competitors also vying for shelf space.

Dan Sanker, CEO of Fayetteville-based CaseStack, a third party logistics firm, has grown a service-oriented business around helping suppliers keep product on retailer shelves why also reducing their overall transportation and warehousing costs. The former Proctor & Gable executive attributes CaseStack’s success to it’s collaborative model and technology prowess.

CaseStack works in tandem with suppliers on one side and Wal-Mart and other larger retailers on the other side to ensure uninterrupted availability throughout the supply chain.

Sanker felt so strongly about the power of collaboration that the business entrepreneur authored a book on the subject in 2012 titled, “Collaborate: The Art of We.”

Sanker says there is an enormous amount of lost money sloshing around the supply chain as smaller and mid-size suppliers often lack the capital to invest in their own in-house supply chain management systems.

EXTRACTING WASTE
He said trucks travel half empty, losing more time at the distribution warehouse while waiting for a door to unload products bound for retailer shelves. The suppliers are penalized for late deliveries and damaged goods which can negatively impact their score cards and opportunities for valuable shelf space.

Since the recession of 2008, the CaseStack model, according to Sanker, has consistently saved its customers 40% in logistical costs while also improving time efficiency by 20%.

“Consumers, and even the environment, ultimately benefit when we all work together to extract anything wasteful in the macro supply chain network,” Sanker said.

He says larger suppliers are already able to realize transportation cost savings and high service performance levels because they have invested in inventory systems to maximize efficiency.

But CaseStack caters to the smaller and mid-size suppliers that make up a majority of the less-than-truckload shipments coast to coast.

CALIFORNIA ROOTS
Sanker founded CaseStack in 1999 and first based the firm in Santa Monica, Calif.

His goal was to level the playing field for mid-size suppliers by providing consolidation programs, efficient warehousing systems and streamlining transportation management to increase efficiency while also creating cost savings and raising supplier score card performance.

“We want to do what once seemed mutually exclusive – improve supply chain performance while simultaneously reducing operating costs for customers,” Sanker said.

The creation of the company’s network of collaborative retailer programs in conjunction with its cloud-based technology platform allowed CaseStack to deliver on its vision.  

"We have worked with leading retailers in the U.S. and internationally to build on the premise that supply chains must become more efficient for companies to prosper in the years to come,” Sanker said.

CaseStack works as a middle man to help suppliers get their productS delivered timely and economically to retailer shelves. Through technology, the firm offers suppliers a one-stop system that provides tracking and visibility of product as it moves through the supply chain.

Whether its helping Greystar Products get Tony Roma’s barbecue sauce on grocer shelves or working with Asian companies sourcing American-made products, CaseStack is busy tailoring services to fit a wide range of logistic needs for suppliers, Sanker said.

“The international piece of our business is the fastest growing segment in our company, still relatively small but an enormous opportunity as the entire world is beginning to rethink about how and where it sources products,” Sanker said.

Anaheim-based Greystar also benefits from CaseStack’s retailer consolidation program which combines two or three separate deliveries heading to the same distribution center, store or region into one full truckload delivery.

CaseStack pools Greystar’s products and receives a reduced freight rate. The consolidated program not only saves Greystar Products money but also cuts back on CO2 emissions, road congestion and dock congestion, according to Terry Italia, president of Greystar.

MOVE TO NWA
In 2007 Sanker, his wife, Jane and their two sons moved to Fayetteville so he could immerse himself in the culture of consumer packaged goods, supply chain and retail thought leadership.

He said company has found an abundance of industry talent in Northwest Arkansas, and the company has added about 70 people to the Fayetteville home base.

The company has doubled in size since 2007, with roughly 2,000 customers to date. CaseStack has grown at a 20% annual clip since the recession of 2008.

Sanker says that growth pace is expected to continue in the coming years as companies have been asked to set the sustainable and efficiency bars higher and higher.

“There is a network effect; the more retailers and suppliers we work with – the better the platform is for everyone,” he said.

CaseStack still has two offices in Southern California and warehouse locations in areas that include Los Angeles, Portland, Dallas, Chicago, Toronto, Atlanta and Scranton, Pa.

“I travel fairly often to meet with our many partners and clients. It’s great to participate in the world’s largest retail business cluster, but I feel like our customers and retail partners throughout the world have become like mentors for our future development,” Sanker said.

He quotes, Major League Baseball Hall of Fame manager, Casey Stengel  who said “Gettin' good players is easy. Gettin''em to play together is the hard part."

“We’ve cobbled together an ever-growing network of the best and brightest in the industry – some CaseStack and some partners. Everyone wins when we find new ways to use our people, process and technology to create win-win situations,” Sanker said.

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XNA, Fort Smith enplanements off to slow start

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Editor’s note: This story is a component of The Compass Report. The quarterly Compass Report is managed by The City Wire and presented by Fort Smith-based Benefit Bank. Other supporting sponsors of The Compass Report are Cox Communications and the Fort Smith Regional Chamber of Commerce.

Traffic at the Fort Smith Regional Airport is off to a rough start in 2013 following 2012 activity that resulted in three consecutive years of enplanement gains. Enplanements at the busier Northwest Arkansas Regional Airport (XNA) are also off to a slow start.

Enplanement activity at Fort Smith and XNA mirrors that of American Airlines and Delta, the two primary carriers at the airports. Enplanements are a direct measure of business and tourism travel.

February enplanements at the Fort Smith Regional Airport totaled 5,982, down 6.86% compared to February 2012. The February declined followed a 9.4% decline in January. The 2013 year-to-date figures at Fort Smith continue a downward trend from the fourth quarter of 2012. Enplanements were down almost 6% during the 2012 fourth quarter compared to the 2011 period.

For the first two months of 2013, enplanements at Fort Smith totaled 11,940, down from the 13,006 during the same period in the same period of 2012.

Enplanements at the airport totaled 86,653 during 2012, just ahead of the 86,234 in 2011, and marking three consecutive years of enplanement gains. Enplanements at the Fort Smith Regional Airport during 2011 eked out a 0.12% gain over 2010.

Following is a track of the previous five years of Fort Smith enplanements.
2012: 86,653
2011: 86,234
2010: 86,129
2009: 78,432
2008: 87,030

Regular enplanement traffic at Fort Smith peaked in 1998 at 109,034.

NORTHWEST ARKANSAS
Enplanements at XNA during February totaled 38,908, essentially flat compared to the 38,901 during February 2012. The February activity follows a January that posted a 2.8% increase in enplanements.

For the first two months of 2013, XNA enplanements total 77,675, up just 1.38% compared to the same period of 2012.

Enplanements at XNA totaled 565,045 during 2012, up just 0.4% compared to 2011. Although slight, the gain prevented XNA from posting two-consecutive years of enplanement declines.

Enplanements at XNA totaled 562,747 during 2011, down 1.38% compared to 2010. During 2010, XNA had 570,625 enplanements, up 5.49% over 2009. XNA’s first full year of traffic was 1999, and the airport posted eight consecutive years of enplanement gains before seeing a decline in 2008. It reached a peak of 598,886 in 2007.

Following is a track of the previous five years of XNA enplanements.
2012: 565,045
2011: 562,747
2010: 570,625
2009: 540,918
2008: 571,845

No information is available for 2013 enplanements at the Bill & Hillary Clinton Airport (Little Rock National Airport). During 2012, enplanements at the airport totaled 1.147 million for all of 2012, up 4.07% compared to 2011. The 2012 numbers ended five consecutive years of enplanement declines.

DELTA, AMERICAN AIRLINES DATA
U.S. weather conditions, including a wind and snow storm that resulted in 15 deaths and a state of emergency declared in six eastern states, hampered airline traffic during February. Thousands of flights were cancelled between Boston, New York and Atlanta. Cancellations at those key hubs negatively impact traffic throughout the rest of the U.S.

Passengers boarding all American flights in February totaled 7.901 million, down 0.8% compared to February 2012. For the first two months of 2013, total boardings for American were 16.521 million, up 1.1%.

Passengers boarding all Delta flights in February totaled 16.052 million, down 5% compared to February 2012. For the first two months of 2013, total boardings for American were 33.575 million, down 3.6%.

“Despite the impact of inclement weather, Delta completed 99.0 percent of its flights in February and ran an on-time arrival rate of 86.1 percent,” noted a Delta press release.

2013 ESTIMATES, 2012 FINANCIALS
With or without cooperative weather, the Federal Aviation Administration is predicting that U.S. enplanements will be flat in 2013 compared to 2012. The FAA says international airline traffic should increase 0.7% in 2013, with Latin American traffic being the largest growth region with a predicted 4.1% increase.

A tepid U.S. economy and cost issues for the airlines are typically cited for the lack of growth in airline travel.

According to Airlines for America, the trade association for most of the large commercial carriers, the 10 leading carriers saw expense growth of 4.7% outpace a 4.5% gain in revenue.

“The price of jet fuel reached a record-setting, year-long average of $128 per barrel, costing these carriers approximately $50 billion for the second consecutive year,” noted the Airlines for America report on 2012 industry results.

The report also noted that the 10 airlines reported a combined $152 million, or 21 cents of net profit for every passenger enplaned.

“U.S. airlines eked out another year of meager profitability as expenses grew faster than revenues with record-setting fuel prices serving as a primary driver,” A4A Vice President and Chief Economist John Heimlich. “The airlines spent some $50 billion to fuel their flights despite using half a billion fewer gallons in 2012 than in 2011 and last week the price of jet fuel hit its highest level in nearly a year. Fuel remains the airlines’ single largest expense.”

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Network of Executive Women plan Spring Event

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The Northwest Arkansas Region of the Network of Executive Women (NEW) Spring Event will feature best selling author Mary Davis Holt.

The event is set to begin at 11 a.m., April 4, at the Embassy Suites in Rogers.

Holt, is an executive coach, speaker and expert on business, women, and leadership. She is expected to share her hard-won insights and promotes her new rules for success to a wide range of audiences. She’s also a co-author of the New York Times Best selling book, Break Your Own Rules: How to Change the Patterns of Thinking that Block Women’s Paths to Power. 

According to event organizers, several hundred women in the retail and consumer packaged goods industry will attend for networking and lunch. Link here for more information about the event.

Founded in 2001, the Network of Executive Women, Consumer Products and Retail Industry, has more than 7,000 members from more than 700 companies, 80 national sponsors, and 19 regions in the U.S. and Canada.

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Tyson Foods’ Sara Lilygren works to build bridges

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story by Kim Souza
ksouza@thecitywire.com

She’s a small lady with a big smile, but don’t let that size fool you. Sara Lilygren is a trailblazing executive, seasoned lobbyist and the highest ranking female at Tyson Foods Inc.

No one who knows Lilygren is the least bit surprised by her success and Lilygren believes there is more to do in her new role as executive vice president of corporate affairs, and in leading the company’s charitable giving efforts.

Lilygren saw the world up close from an early age as one of four children in a military family during the Cold War.

“My dad was Air Force and my mom was an incredible role model. She packed up the four of us kids, time and time again. I lived in three countries and called eight houses home from the time I was born until I graduated at 17,” Lilygren said.

Living abroad, she was recruited by Air Force and West Point but said her heart was set on being a diplomat from the time she was a junior in high school.

“I spoke three languages, knew how to pack a suitcase and move, and really saw myself traveling the world as a diplomat,” Lilygren recalled. “I worked as translator in both French and German when I was living abroad as a teen.”

She earned a bachelor’s degree in foreign relations from the University of Virginia and and made a beeline to Washington D.C. after graduation hoping to take the exhaustive State Department exam required for diplomat appointments.

“When I got to the State Department I was told they were no longer giving the exam because it was one of the few times in our history the federal government was laying people off. Jimmy Carter was president and mortgage rates were 18%,” Lilygren sighed.

“My career as a diplomat derailed at that point and a friend of friend put me to work in public relations, licking stamps and stuffing press packets because I had to support myself,” she said.

SCHAFFER’S FIND
Lilygren’s confidence and diplomacy skills caught the eye of Archie Schaffer III, the former head of Tyson’s lobbying and public relations efforts. In 2002, Lilygren worked as veteran lobbyist and public relations executive for the American Meat Institute in Washington D.C. – a career that spanned 18 years.

“Archie recruited me to Tyson to head up their lobbying efforts in D.C. I had been doing both PR and lobbying for the trade organization. Even though I hated to give up the PR work, I was excited about the possibilities with Tyson Foods, and it’s been a good fit,” Lilygren said.

Between 2002 and 2009, Lilygren said she ran Tyson’s lobbying efforts out of Washington, which was no small feat. According to OpenSecrets.org, Tyson Foods’ lobbying efforts totaled more than $10 million during that time as the meat company lobbied against ethanol subsidies and promoted Tyson’s position on trade, taxes, immigration, environmental and labor issues.

When Schaffer retired in November 2012, Lilygren was promoted to “Executive VP” within the top management ring at Tyson Foods.

Marvin Childers, a lobbyist and director for the Arkansas Poultry Federation, said Lilygren is a skilled negotiator, astute and one who knows well all the issues facing Tyson Foods the meat industry as a whole.

“She’s engaged in ongoing discussions and has served on the Arkansas Federation Poultry Board for the past two years. Her diplomacy plays well as she works with competitive firms on major issues such as food safety and environmental concerns,” Childers said.

BRIDGE BUILDER
Lilygren sees herself as a bridge builder and said finding middle ground is the most important part of negotiating. She said her intellectual curiosity and flexibility are also key attributes learned or gained during her childhood.

Childers said Lilygren played a key role in the initiating Tyson’s Farm Check program, which is an effort to audit the treatment of animals at the livestock and poultry farms that supply Tyson Foods.

In recent years animal activists have stepped up efforts to call out meat companies for perceived animal cruelty. Tyson officials believe their “Farm Check” program is a move toward transparency and aligns with the company’s stewardship mission.

“She has top management’s ear and decision making authority. Her expertise is respected throughout the state and meat industry,” Childers said.

Randy Zook, CEO of the Arkansas State Chamber of Commerce says. “Sara Lilygren is a star on the Arkansas stage.”

“Her experience in government affairs is keen at the state and national levels, she has worked closely with the State Chamber office engaged and advising on issues relating to ethanol, alternative energy, workers compensation and labor policy. Her expertise is much broader than Tyson’s key issues as she has been a great source for general business concerns as well,” Zook said.

Zook says Lilygren is a skilled leader and asset for the state as whole.

A NORTHWEST ARKANSAS ASSET
Lilygren moved her family to Rogers in the summer of 2009 and turned in her lobbying credentials as she accepted a new role in the company’s Springdale headquarters – senior vice president of external relations, overseeing the company’s charitable giving as well as community and public relations segments.

“I was so excited to get back into the PR side of the business and I had no real experience in charitable giving, as I has worked all those years in the non-profit world. It was great to have the opportunity for me at this point in my career,” Lilygren said.

She was soon appointed to the Walton Arts Center’s Corporate Leadership Council, which she now chairs.

“Sara was a key member of leadership team that conceived and created the Masquerade Ball three years ago and she has been instrumental in creating one of the most unique and successful fundraisers in Northwest Arkansas,” said Peter Lane, CEO  of the Walton Arts Center.

He said under Lilygren’s leadership, the Walton Arts Center raised more than $100,000 this year through the Masquerade Ball. These proceeds support the efforts of 50,000 students and teachers across the state to explore world cultures and connect to live performances through the center’s various arts education programs.

She also serves board for the Ozark Affiliate of Susan G. Komen for Cure and is an advisory council member for the Arkansas World Trade Center and the U.S. Chamber of Commerce.

While Lilygren keeps a busy work schedule, traveling extensively at times, she has also participated with the Northwest Arkansas Council on a number of issues, according to CEO Mike Malone.

“Sara has been helpful to the NWA Council sharing her unique perspective on policy-related issues. Her interests are broad: including quality education and quality of life, which are two of the council’s key focus areas,” Malone said.

ROLE-MODEL CROWN
As the only woman to cross into top management at Tyson Foods, Lilygren is naturally seen as a role model for women in business. But it’s not a new position for Lilygren. For more of her professional career – especially in the predominately male lobbying ranks for a largely masculine meat industry – she was one of the few women in her work sphere.

Lilygren embraces the female role model crown.

“I had a very strong role model in my mom and understand the importance of that among younger women today. On my own dime and time I routinely take a few women from Tyson Foods to lunch on a regular basis so that I can hear their dreams and they can share their goals with me,” she said.

Lilygren also directs an internal women’s meeting group at Tyson Foods and has done so since she moved here in 2009.

“She’s an asset to the region given her position and professional stature and I am glad that my two daughters have these strong professional female role models in business. Sara is one of several who come to mind.,” Malone said.

PERSONAL TIME
Lilygren says she just makes time for the things that matter in spite of her busy schedule. And that includes riding motorcycles with her husband Alex May, an attorney at Wal-Mart Stores Inc,. and spending time with her sons Ryan and Conner who are 15 and 13.

She owns a Heritage Softail Custom Deluxe, which she bought and took lessons to ride at Pig Trail Harley Davidson in Rogers.

“I learned to ride in self-defense because my husband wanted to and I have to say I love it,” Lilygren said.

She enjoys cruising the scenic byways around the state but says she’s still learning to ride with confidence and attends the annual Bike & Blues festival via car because of the crowds and slow traffic.

Lilygren has traveled the world over and lived many places but says she feels at home in Northwest Arkansas.

“I was taken back by the beauty of Northwest Arkansas and surprised to find this region very much feels like an expat (expatriate) community, not too different from D.C. because so many folks have been drawn here to work, like folks are drawn to D.C. for government and agency-related jobs,” Lilygren said. “I have been surprised and very much enjoy the ease of quality of life here.”

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ConAgra breaks ground on $100 million expansion in Russellville

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ConAgra Foods on Friday (Mar. 15) broke ground on a $100 million expansion in Russellville, according to a press release from the Arkansas Economic Development Commission.

As part of the expansion, originally announced in September 2012, ConAgra Foods anticipates an investment of $100 million in the new facility and expects to add more than 80 new jobs. The expansion in Russellville is a result of ConAgra Foods’ 2012 acquisition of the Bertolliâ and P.F. Chang’sâ Home Menu frozen meal business, which will be added to the facility’s production lines.

The expected addition of 80 or more new jobs over the next two years will bring total employment to approximately 1,300 at ConAgra Foods’ Russellville facility.
 
“ConAgra Foods has a long history in the community, and we are excited to grow our presence here,” Mike Tracy, senior vice president of Consumer Foods Supply Chain for ConAgra Foods, said in the statement. “Our talented, committed employees and the tremendous support we receive from the city of Russellville and State of Arkansas will help us make great food here well into the future.”
 
ConAgra Foods’ Russellville location, a facility operation under different owners since 1964, produces Banquetâ, Healthy Choiceâ and Marie Callender’sâ products.
 
“ConAgra Foods’ significant investment in this expansion is a testament to the quality of the company’s existing workforce in Russellville,” said Grant Tennille, executive director of the Arkansas Economic Development Commission. “Today’s groundbreaking further establishes Arkansas’s reputation as a hub in the food production sector.”
 
Omaha, Neb.-based ConAgra Foods is among North America’s leading food companies, with ConAgra Foods brands found in 97% of American households.

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Fayetteville Chamber announces Tomorrow’s Leaders winners

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Daniel Barnes, Sandy Edwards, and Don Soderquist have been named the inaugural winners of the Tomorrow’s Leaders award presented by the Fayetteville Chamber of Commerce. The winners are those who exemplify the traits of leadership, communication and relationships, according to a chamber statement.
 
The trio will be honored at the first Tomorrow’s Leaders Conference set for March 28 at the John Q. Hammons Center in Rogers.

Soderquist, senior vice chairman of Wal-Mart Stores, Inc., will receive the Servant Leadership Award. The award goes to someone who has a proven track record of impacting their organization and the Northwest Arkansas community through their inspirational leadership.

Soderquist joined Wal-Mart Stores, Inc. as executive vice president in 1980 and in 1988 was appointed vice chairman and chief operating officer. In 1999, he was promoted to senior vice chairman of the corporation. In 1998, John Brown University created The Soderquist Center for Leadership and Ethics in his honor. The Center designs and facilitates programs to help organizations, teams and leaders reach their full potential, operating from Soderquist’s fundamental premise that “values matter in everything we do.”

Edwards, deputy director of Crystal Bridges Museum of American Art, is the winner of the Trailblazer Leadership Award. Edwards was the associate vice chancellor for development at the University of Arkansas where she and her late husband, Clay, served as the management team for University Development directing the $1 billion Campaign for the 21st Century. She joined Crystal Bridges in 1997 in the museum’s early stages of development, playing a vital role in the conception, planning, building and opening of the world-class museum.

Barnes, president of the Fayetteville office of McClelland Consulting Engineers, will be honored as the chamber’s Tomorrow’s Leader, an up-and-coming rising leader, who shows emerging ‘potential’ for great impact on Northwest Arkansas.

At 30, Barnes was made a partner in the firm of McClelland Consulting Engineers, before becoming the president of the firm’s Fayetteville branch. Barnes was elected to serve as chairman of the Ronald McDonald House Charities of Arkoma. He is an active member of the Fayetteville Downtown Rotary and also serves on the Arkansas Airport Operators Association Board of Directors as a corporate member. He is a graduate of the Fayetteville Chamber of Commerce Leadership Fayetteville program.

The March 28 Tomorrow’s Leaders conference includes a full day of speakers and break-out sessions devoted to developing leadership skills in employees at all stages of their careers. Tracks include sessions on communication, leadership and relationships. Tickets are $99 per person, and group discounts are available. Link here to the Tomorrow’s Leaders website for more information.
www.tomorrowsleadersnwa.com/

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Arkansas foreclosure filings flare up

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Roughly 800 homeowners across Arkansas face potential foreclosure as they are part of a growing number of residents more than 90-days behind on their mortgages, according to a recent report from RealtyTrac.

In February, RealtyTrac reported 154,281 U.S. properties had received some type of foreclosure filing during the month. The rate of delinquency rose 2% from January, but was still 25% below the levels from a year ago.

That was not the case on the local scene. Nearly 25% of the state’s foreclosure filings were for properties in Northwest Arkansas. The vast majority of those are in Benton County.

There were 132 new foreclosure filings across Benton County in February, up 80% from a year ago. The majority of the homes -- 98 of them -- where set for trustee auction which is the second phase in the somewhat lengthy foreclosure process.

One in every 303 households in Benton County are in some phase of foreclosure, as of the February report. The national rate is one in 849 households, according to RealtyTrac.

“At a high level the U.S. foreclosure inferno has been effectively contained and should be reduced to a slow burn in the next two years,” said Daren Blomquist, vice president at RealtyTrac. “But dangerous foreclosure flare-ups are still popping up in states where foreclosures have been delayed by a lengthy court process or by new legislation making it more difficult to foreclose outside of the court system. Foreclosure starts have been steadily building in those states over the last several months and likely will end up as bank repossessions or short sales later this year.”

Arkansas is among more than a dozen states seeing filings flare up as the moratorium was lifted more than nine months ago on foreclosures by out-of-state banks.

While statewide foreclosure filings rose 75% during February from a year ago, in Washington County the number declined. There were 61 new filings in Washington County last month, down 23% from a year ago. Like in Benton County, the majority of the filings -- 56 of them -- were in the second phase of the foreclosure pipeline and set for trustee auction.

Roughly one in 793 households in Washington County were in the midst of foreclosure during February.

FORT SMITH MARKET
The smaller Fort Smith metro also posted a spike in foreclosure filings during February.

Sebastian County reported 24 new filings last month, with 22 of those being homes set for trustee auction, according to RealtyTrac.

The foreclosure rate rose nearly 85% from a year ago and affected one in every 1,093 households last month. This compared to one in 849 households at the national level.

In Crawford County there were 20 new foreclosure filings last month, up 100% from a year ago. Roughly one in 726 households were affected by foreclosure, which is slightly more prevalent than the national rate and roughly the same foreclosure rate found in neighboring Washington County.

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