A revised risk management plan submitted by Whirlpool Corporation to the Arkansas Department of Environmental Quality Tuesday (May 21) has left residents and city directors dissatisfied with the company's plan for cleanup.

Whirlpool operated its Fort Smith plant 45 years before ceasing production on June 29, 2012. The Whirlpool plant employed more than 4,600 workers in 2006, and resulted in about 1,000 jobs lost when it closed in 2012.

A groundwater ban was requested earlier this year by Whirlpool as a response to trichloroethylene (TCE) in the soil in a residential neighborhood near the shuttered plant. TCE had previously been used by the company in Fort Smith from 1967 to 1981, according to information provided by ENVIRON International Corp., the firm paid by Whirlpool to assess environmental impact.

The plan has several components that affect everything from oxidation of water to soil monitoring, some of which have been excerpted as follows:

ON-SITE GROUNDWATER
"On-site and off-site groundwater will be treated in-situ with a chemical oxidant to reduce source area concentrations. This action will also affect the off-site groundwater concentrations by reducing the toxicity and volume of COCs moving off-site. …After completion of chemical oxidation monitored natural attenuation will address any remaining dissolved COC mass and fringe areas.

"Use of in-site groundwater will also be restricted via the use of institutional controls for the entire site. In addition, institutional controls in the form of deed restrictions will be put into place to prohibit groundwater use on-site, require appropriate health and safety precautions be enforced during construction or maintenance activities that involve excavation into impacted groundwater, and require the future building use comply with Occupational Safety and Health Administration (OSHA) requirements and include chlorinated volatile organic compounds (CVOCs) in impacted groundwater as part of the hazard communication program."

ON-SITE SOIL
"On-site soil will be addressed through institutional controls (restrictive covenants) to eliminate access to affected on-site soil. Whirlpool will record restrictive covenants when the property changes ownership."

OFF-SITE GROUNDWATER
"The selected final remedy also includes proposed off-site institutional controls. Off-site institutional controls can take the form of either deed restrictions, restrictive covenants, or a city ordinance."

INSTITUTIONAL CONTROLS
"In order to meet obligations associated with restrictive covenants, Whirlpool will record restrictive covenants on the site that will require future owners of the property to adhere to the recorded restrictions. …In order to meet obligations associated with the off-site restrictions, Whirlpool will pursue off-site institutional controls after the acceptance of the final remedy by ADEQ in cooperation with residents and the City of Ft. Smith."

SOIL GAS MONITORING
"Whirlpool will implement a program of soil gas monitoring for a five year period on an annual basis to monitor the soil gas concentrations to confirm that groundwater-derived vapors are not migrating and that vapor intrusion continues to be an incomplete pathway. The program will use the existing soil gas sampling points augmented with additional soil gas sampling points to be incorporated into the performance monitoring program."

MONITORED NATURAL ATTENUATION - GROUNDWATER MONITORING
"Whirlpool will implement a program of quarterly groundwater monitoring for a five-year period to verify effectiveness of natural attenuation."

FIVE-YEAR REPORT
"Consistent with the 2005 Arkansas Groundwater Remediation Level Interim Policy, five years after initiating the final corrective measure, Whirlpool will submit a five-year technical review of the status of the Whirlpool site final corrective measure and assess the need for any necessary further actions."

PUBLIC INVOLVEMENT PLAN
"The public involvement plan will consist of:
• "establishing a local repository for project documents…
• "compiling a copy of the Administrative Record for public access at the repository…
• "conduct a public meeting for all residents and city leaders to review and comment on the final corrective measure.

"Whirlpool has provided a copy of relevant site documents to the repository that will provide the public the basis to understand the selection of the final corrective measure and will update as more documents are published."

TIMELINE AND REACTION
A preliminary schedule included in the plan proposes implementation of the proposed plan by Oct. 30, though it would depend on approval of the plan from ADEQ.

Reacting in a telephone call to the plan, resident Debbie Keith did not mince words.

"I think it's a bunch of BS," she said. "It's the same thing they've done before. It didn't work, so why are we wasting lawyers and putting our health at risk for them to spend as little as possible?"

Fort Smith Director Keith Lau said the plan may not be the final plan presented to the public at a later time.

"It looks, to me, like it's an ongoing negotiation," he said. "They agree with some of the ADEQ's recommendations and disagree with some of it, so it's just more of the same. It's a lot of back and forth."

The issue of institutional controls, including the possible passage of a city ordinance or deed restrictions, caught Lau by surprise.

"I can't imagine me as a city director ever voting for deed restrictions or institutional controls until the affected property owners are compensated or the soil is remediated."

Keith wants Whirlpool to step up and address the problems faced by her and other residents in the neighborhood north of the former manufacturing facility.

"I just want them to buy my property and let me leave," she said. "My great-grandfather built this place, so I never intended to leave my home, but I'm also disabled at 47-years-old. I don't know that they didn't cause it, they don't know that they didn't cause it, but if my health could get better living somewhere else, but all means, let's go."

City Administrator Ray Gosack was asked about the plan and whether it properly addressed concerns from the city or if the city would like to see anything added to the plan.

“The revised plan was submitted in response to questions and concerns from ADEQ,” Gosack responded. “I don’t have the scientific background to evaluate the responses and information provided by Whirlpool/Environ. I think that ADEQ is in the best position to answer the questions you've posed."

A call to Whirlpool was not returned.

Link here for a PDF (large file) of the new plan.

At 70, Ben Israel, is trying to build his third business success out of the ashes of personal and business bankruptcy, relying on his faith and hard life lessons learned to lead the way.

The past decade has been a wild ride for Israel, an entrepreneur at heart, and one who does not know the meaning of retirement. His drive may stem from his upbringing on a small dairy farm south of Greenwood and his internal drive to build successful ventures, the mark of a true entrepreneur.

“I don’t know how to quit. I still owe money and working feels right,” Israel said candidly.

Since 2011, Israel has worked in a real estate venture, A-Team Services, as a consultant and service broker for general contractors in residential and smaller commercial jobs. He said last year the majority of their work came from commercial roofing jobs, but he is hoping to expand on that in 2013.

“Because of the bankruptcies, traditional lenders are hesitant to loan money so we have focused on custom deals and other investor-funded projects,” he said.

While it’s a far cry from Dixie Development, a real estate conglomerate that included 66 different companies, Israel said the A-Team venture feels right for this time in his life.

“We aren’t trying to build another Dixie, but my wife Nancy and I are committed to growing this startup in whatever direction it takes,” he said. “Nancy has been my partner for nearly 44 years and we are in this together, as always.”

DIXIE RETROSPECT
Dixie Development grew out of a hobby Israel had dabbled in for years as a local optometrist.

“I bought some commercial property as investments and my brother and I set out to develop some office space which was needed in Northwest Arkansas at the time, around 1998 or so,” he said.

Within two years, Israel said his older brother did not have the appetite to continue, but he had a found a new passion. Israel built Dixie up to employ more than 150 people by 2006 doing all aspects of real estate, from excavation, architecture and dirt work, to construction, landscaping, electrical and HVAC, to finally leasing and selling of commercial and residential property.

“We essentially integrated almost every aspect of the building phase in our company. We even had a telecom business as well,” he said.

Dixie built Nelson’s Crossing multi-use space on the corner of Joyce Boulevard and College Avenue in Fayetteville and the Commerce II office park in the same area – two projects Israel remains proud of to this day.

Israel said Dixie was highly leveraged with some $300 million in debt against assets valued at $400 million when commercial property values began to tank in late 2006 and early 2007.

Filing Chapter 13 Bankruptcy, Israel had hoped to save this business, but as losses mounted the mega company was spun down to one, Mitosis LLC, which still exists today as the offices where Israel runs his A-Term venture.

OPTICAL BACKSTORY
One has to wonder how an optometrist gets from eye examinations to multimillion dollar real estate developer, but for Israel that journey made logical sense.

Around 1987, he said a change in state law allowed optometrists to advertise their services, which equalized the fees and ultimately reduced profitability for private practices like his own.

“I had run a successful eye care business for 35 years and was the team eye doctor for the Razorbacks, but I wanted to seek some commercial outlets for my business so I went to see Sears about letting us set up eye clinics in their stores where they could also sell eye glasses," Israel said.

Sears gave him all the stores in Arkansas, one in Alabama, one in Joplin and two in Mississippi to get started. He could advertise and consumers could use their Sears credit cards to pay for the services, and he said the business took off quickly.

Within a year, Israel said he called on Sam Walton in Bentonville with a similar plan. At the time Wal-Mart was about to close a deal with a lease-tenant in Texas.

“Mr. Sam promised me the next deal. And he delivered. We set up clinics in Topeka, Kansas, as well as Sugarland and Arlington, Texas. The results were good, which prompted Mr. Sam to want more. We set up services in 10 more Wal-Mart’s but the biggest thing he did for us was give us the Sam’s Club business,” Israel said.

He said Mr. Sam was a great tester of store ideas as he worked to find the right balance between cost and return on investment.

“In one Sam’s Club he wanted to try a lab, in the next one he wouldn’t. Then we tried comparing the cost and performance with an ophthalmologist (doctor) and one without. In Sugarland, Texas, we built a huge lab with one-hour service for lenses. We worked tireless to get the model just right. We ended up with a kiosk model, saving doctor costs and this made Mr. Sam very happy,” Israel said.

The next year he said Mr. Sam asked him to oversee operations in 90 stores as the business model had taken wings.

After Walton’s death, Israel said he opted to sell his business venture to a suitor as the culture within Wal-Mart began to change.

“Mr. Sam was really a great partner, he took an interest in our venture, which wasn’t passed on to the 25-year-old accountants I dealt with after his death.” Israel said. "By 1994, we opted to sell out.”

He said the Wal-Mart optical lab in Fayetteville was turning out 1,500 pairs of glasses a day, with 150 people working in three shifts. Similar labs also operated in Houston, Dallas and Little Rock, when he sold the business.

He kept the Sears business until 1998 and then sold it as well to jump feet first into real estate, something he had been investing in for several years on the side.

LESSONS LEARNED
Looking back, Israel said important lessons he learned were the personal insights about his own shortcomings.

“I am a big picture guy, I push and push to grow and make things bigger, but in so doing, I often neglect detail. I did it with First Family Vision Center and repeated the mistake with Dixie Development. You would think I would learn my lesson,” Israel said.

Serial entrepreneur Jeff Amerine of Fayetteville has worked with numerous startup ventures of his own through the years and says most entrepreneurs possess a self-assuredness and higher appetite for risk that can make others uncomfortable. Amerine is the associate vice-provost for research at the University of Arkansas and a local angel investor and startup consultant.

He said being an entrepreneur is a life-long affliction, in that there is a constant battle to turn the crank and build something new or bigger.

Israel, who admits he was consumed with growth, recalls one big issue that his companies faced was the loss of their corporate culture.

“When you acquire other small companies to facilitate growth like we did with our Wal-Mart model, we lost our unique culture. For instance we set up shop in Miami hiring local people there to run our operations and we didn’t adequately train them in our culture, because we were on to the next job. One day you look up and the corporate culture you love is gone, your company has become something else,” he said.

In the past five years Israel said he’s seen plenty of life-lessons as his mother and brother both died, he became estranged from his only son, filed business and personal bankruptcy and fended off 130 lawsuits.

“My only regret is that I wasn’t a better example for my family and staff through the years. The physical properties one-by-one where returned to lenders, peeled back like skin on an onion. Automobiles, jewelry and other personal effects were also collateral and handed over to lenders as the company unwound,” he said.

The bankruptcy was a humbling experience, he said it took 4.5 years to unwind the DIxie companies and then he ultimately ended up filing personal bankruptcy in the process.

“You just never think you will see yourself there,” he said.

Israel believes he has learned more from his failures than his successes and said he accepts responsibility for the business decisions he made. A couple of years ago Israel was thrown from his horse into a steel beam. His pelvis was fractured and he spent three months in a physical rehab to regain his ability to walk.

“Lots of time to think," he said, “I had gotten so far away from the way the teachings I was raised on and who I was raised to be, but God sat me down and got my attention. ... Today I am just happy to brush hog the acreage around our home, play a little golf and continue working on this next venture with Nancy by my side.”

Consumers across Northwest Arkansas continue to boost local sales tax collections upward through the first three months of this year, despite the adjustment to higher payroll taxes and a colder winter season.

The cities of Fayetteville, Springdale, Rogers and Bentonville each report year-to-date collections running ahead of budget and above last year’s results.Through the first three months of this year cumulative collections totaled more than $21.30 million, up 5.42% from the same time in 2012.

Collections reported in May were for sales generated in March creating a two-month lag in the data. Each city collects a 2% sales tax that is split with 1% going to the general operating funds which is tracked by this report and 1% is set aside to repay debt.

Revenue Collections through May
Rogers $5.992 million, up 9.95%
Fayetteville $7.78 million, up 4.74
Bentonville $3.632 million, up 3.8%
Springdale $4.275 million, 2.12%

City officials are pleased with overall collections. And while some months have been stronger than others, each of the larger cities polled said their budgets are in good shape heading into the summer.

The smaller cities in the region including, Siloam Springs and Lowell report mixed results so far this year. Siloam Springs has collected $1.171 million in tax revenue for the city budget, down 3.8% from a year ago. Lowell has seen steady growth with $1.114 million collected this year, up 31.6% from the year-ago period.

As noted, the sales tax report is a lagging indicator by about 60 days. Consumers started this year facing higher payroll taxes, to the tune of about $1,000 a year for most households earning at least $50,000. Retailers like Wal-Mart and Target reported softer overall sales across the country during the same period, while restaurant sales had it worst quarter in several years, according to NPD group.

Economists say consumers were helped by lower gas prices and virtually no food inflation during the first three months of 2013, which maybe why overall sales receipts were slightly higher for discretionary spending.

As the cities look toward future collections, consumer sentiment climbed in May to its highest level in nearly six years. The University of Michigan sentiment index rose to 83.7, it’s highest mark since July 2007. Economists said this gain in confidence shows consumers are overcoming the effects of higher taxes, federal spending cuts that threatened to take a toll on jobs.

Locally jobs numbers are improving, according to Kathy Deck, director for the Center for Business and Economic Research at the University of Arkansas.

Non-farm jobs in the local metro area 219,800 at the end March, up from 209.700 jobs in the same month last year, according the Bureau of Labor Statistics. The local unemployment rate in March was 5.5%, down from 5.6% and 6.3% in the two prior-year periods of 2012 and 2011, respectively.

Better job numbers are also bringing more people to the region, which has in turn helped demand for housing and should continue to spur on  traffic to retail and food outlets in the coming months.

Area residents could soon be smelling fresh paint along Garrison Avenue following the announcement today that Fort Smith is in the running for a revitalization project as part of the "Main Street Matters" campaign.

The campaign, being sponsored by paint manufacturer Benjamin Moore, puts Fort Smith in competition with communities such as Santa Fe, N.M., and Brooklyn, N.Y.

Benjamin Moore's Chief Marketing Officer David Melancon told The City Wire that the towns to be voted on in all 50 states had to be in position to benefit from such a project.

"We purposefully chose main streets in towns and cities that, in addition to wanting something like this to happen, were right for this type of revitalization," he said. "We all know that there are some downtowns that are having problems that could use the type of help we could give."

In addition to finding cities that could use revitalization, a Benjamin Moore retailer was another key factor so that supplies could be easily accessible for the project, he said.

While a specific project has not yet been chosen in Fort Smith, Melancon said anything to help Fort Smith shine would make a huge impact in the city's image.

"If you think about that one broken window theory – communities that look good and are shiny – that's the first step in any revitalization."

Maggie Rice, a senior planner with the city of Fort Smith, said just being picked as the only Arkansas city is an honor.

“We think it’s quite a compliment that Fort Smith has the historic and architectural value of the other cities. We hope to work hard to preserve not only the history and architecture but also the neighborhoods,” Rice said.

Cities chosen to be a part of the voting were selected through working with local governments and other organizations, according to Benjamin Moore's Director of Communications Kimberlee Bradshaw.

"What we did was we looked at some of the towns across the U.S. and Canada – actually, it was more of a partnership working with local chambers, mayor's offices and local businesses that could be open to this project because it's one of those things that we know that main streets are such a vital part of our communities," she said.

Cities will be chosen based on votes cast on the company's Main Street Matters website. Once there, visitors can click on the image of Arkansas and then click on Fort Smith to cast a vote.

Melancon said individuals can vote once per day for any city they would like.

According to a press release, voting will take place until 11:59 p.m. Eastern Standard Time on June 30, with a list of 20 winning cities announced in July.

In addition to the facelift, local businesses will also get assistance in strengthening their operations, Melancon said.

"In each city we go into, we hope to bring partners with us to aid businesses, or maybe partners who can help consult with the local community to help with tourism."

No specific facelift has yet been chosen in Fort Smith. But should the city be chosen as one of the 20, Benjamin Moore will work with local leaders to choose the right project.

"We really believe in Main Street and the independent retailers that make up Main Street," Melancon said. "It's the hub of our community. We want to do more than honor it, we want to build it."

The “omni” approach to social media includes a blend of several facets including establishing brand advocates in the blogosphere, social media platforms and, where applicable, developing an app.

So in a world where the small business owner is also the marketer, the bookkeeper, the artisan and most other roles that are part of running a business, how can small businesses possibly succeed in social media?

The key, many small business owners agree, is developing a real relationship with customers that is enhanced and developed through the online experience, not just located in that space.

Large companies like Wal-Mart Stores and Duane Reade recently shared about their social media success at the Collective Bias-sponsored SoFabCon, a conference for bloggers and brands to learn together.

There were several companies there that are not so large; they were part of the “Local Love” expo that invited local vendors to share their handmade items including jewelry, soaps and home décor. The City Wire spoke with several of those companies about their own approaches to social media.

“I do everything from my iPhone, and have basically conditioned myself to constantly take photos and post them to keep my business on people's minds,” said Olivia Trimble of Sleet City Décor.

Trimble said she uses Facebook, Twitter, Instagram and Vine and would be willing to try other social media channels as they are developed. Ultimately, developing relationships online or in real life is about how a person treats their customers, she said.

“I think that the bottom line is that you have to be good to your customers, whether it's in person or via social media,” Trimble said. “Maintaining an active online presence and using platforms that allow customers to comment or leave feedback seems like one of the best ways to develop positive relationships with customers.”

Lauren Embree of Lauren Embree Jewelry said she actively participates in most social media platforms including Facebook, Twitter, Instagram, Pinterest and working with bloggers.

She’s found challenges and success with social media.

“My challenges with social media seem to develop as the platform does. Facebook, for example, has made it increasingly difficult to connect with fans,” she said. “It's hard to combat these challenges, I've just learned to go with the flow so to speak, and adapt as they roll out new changes.”

Embree shared a story of how her jewelry being discussed on a blog resulted in her brand receiving national attention.

“A few years ago, my work was featured on an eco-friendly fashion blog out of LA called Eco Stiletto. It was a short mention in their jewelry section, but the very next day I received an email from an editor at Martha Stewart's Whole Living magazine interested in featuring my jewelry. Just a short week later, I was emailed by none other than VOGUE magazine's Accessories Editor also requesting samples of my work for photo shoot in NYC,” she said. “Several of my pieces were featured in the January 2011 issue of Whole Living, which brought new customers from all around the world. After that kind of national attention, most of the local publications were eager to feature me. It was a great launch for my collection.”

Social media is a tool that helps small businesses do what they do best, develop relationships with individual customers.

“Strong relationships lead to trusted recommendations and your business blooms because of it,” she said.

Stacie Bloomfield owns Gingiber, which offers handmade illustrated home wares and paper goods. She uses her website, Facebook, Twitter, Instagram and Pinterest.

“I feel like the most important aspect of using social media as a small business is to be authentic in your message and to not overwhelm your audience with ‘self-promotion,’ she said. “I use Twitter to interact with fellow creatives, fans of Gingiber and other online businesses. I use Twitter more for conversations. But it is still effective. My Facebook page I use more to announce new products or poll fans for ideas. And Instagram gives a behind-the-scenes look at the business. All work together to create a cohesive brand.”

Bloomfield recently had a major success story when she used social media to establish a fundraiser to help her friends Amber and Jonathan Perrodin, who own Perrodin Supply. Jonathan lost one of his fingers in a woodworking accident and Bloomfield, with several other small business owners, wanted to help the family with medical bills and while Jonathan was unable to work. They joined together with artisans from across the country to sell their wares in the “Four Finger Fundraiser,” which raised $5,000 I in a week.

“I spent a few weeks organizing the shop, spreading the word via social media, and telling the Perrodins’ story prior to the opening of the Four Finger Fundraiser shop. The community locally and online shared the story with one another and told how people could help support our cause,” she said. “I feel like the fundraiser was a success because first and foremost we focused on introducing the Perrodins to readers. We told their story. And people could relate to a husband and wife team striving to run a quality handmade business. That coupled with an overwhelming show of love and support from local media and radio resulted in an amazing fundraiser. The use of Twitter, Facebook, and Instagram spread the fundraiser all over the world. People donated from as far away as England.”

The Perrodins have their own success story when it comes to social media. Their company, Perrodin Supply, features handcrafted artist supplies and goods. They use Facebook, Twitter, Instagram and Pinterest. They agree that each platform has a different function and reaches a different audience. They cater their message for the audience that is found on each platform.

“It’s about being aware of our audience,” Amber said. “These are real people that we depend on.”

They also agree that sometimes the toughest part of managing social media for them as small business owners is that social media never “turns off.”

“Twitter doesn’t turn off at 5 p.m.,” Jonathan said. “If you don’t follow up, you lose sales.”

The Perrodins have found that establishing “brand advocates” is really about being good to their customers and fellow artists, which they believe is the right thing to do regardless of sales.

“We try to exceed at customer service and treat them as though we are their fans, not that they are our fans,” Amber said.

Jonathan said they rarely push products and they focus on establishing relationships with both their customers and fellow artists who often refer customers to them and vice versa.

“Our goal is to build relationships. It’s a little longer route but it’s less obnoxious,” he said.

What started off as an attempt by Whirlpool to ban the drilling of groundwater wells in the neighborhood north of its former manufacturing facility due to it admitted trichloroethylene (TCE) contamination has led to two lawsuits being filed against the Benton Harbor, Mich., corporation in Sebastian County Circuit Court this morning (May 23).

The two lawsuits were filed on behalf of residents and landlords, according to associate attorney Ross Noland of the Little Rock-based law firm McMath Woods P.A.

Even though concerns have been expressed over the health affects of TCE, which Whirlpool has admitted could be cancer-causing if ingested, Noland said the lawsuits focus on property damages.

"There are some other elements of damage, but the primary is property damage and the reduction of value in the property," he said.

While a recent lawsuit against Whirlpool related to a cancer cluster in Clyde, Ohio, falls under a class action suit, today's legal filings do not.

"That's a possibility (at a later time), but we're not seeking that," Noland told The City Wire.

Noland said his clients sought out McMath Woods shortly after Whirlpool came before the Fort Smith Board of Directors seeking the groundwater well ban.

The lawsuits filed today do not seek specific monetary damages, but do layout some of what residents are seeking.

"Plaintiffs seek damages for the reasonable expense of necessary repairs and restoration of the property which was damaged, plus the difference in the value of the property before contamination and the value after restoration," read the lawsuit filed by residents.

"Plaintiffs are also entitled to damages for the loss of use and enjoyment of their properties, discomfort, annoyance, disruption, inconvenience, loss of peace of mind, fear and fright resulting from the TCE plume and contamination," the filing continued. "Punitive damages are proper because the defendant knew or ought to have known, in light of the circumstances, that TCE could naturally and probably result in a groundwater plume and damage to plaintiff's properties. Defendant managed its tCE with reckless disregard of the consequences, and in a manner from which malice may be inferred."

The lawsuits come just two days after Whirlpool submitted a revised risk management plan to the Arkansas Department of Environmental Quality, detailing its proposed plan for reducing the TCE plume. In the plan submitted Tuesday (May 21) to ADEQ, the company continues to claim no threat from TCE in the area.

"There continues to be, no human health risk from the TCE release. …A Human health Risk Assessment was completed in 2008 and again in 2012 documenting that off-site risk to residents is not present as long as the groundwater is not sued for drinking water."

Noland said his firm will consult with experts to determine if the claims put forth by Whirlpool as recently as Tuesday are accurate.

"Yes, we have consulted someone – I want to be careful – I don't want to downplay people's health concerns, but we are approaching this as a property damage case," he said. "For the time being, that's what we're looking at, but that's why are are going to do discovery."

According to Lawyers.com, discovery involves "the methods used by parties to a civil or criminal action to obtain information held by the other party that is relevant to the action."

Noland said while each case is different, he expects these cases to be in the legal system from six months to two years.

"You can never predict what will be filed or what evidence will be filed," he said.

Plaintiffs in the lawsuit filed by residents include Barbara Wilkinson, Harry Smith II and Raymond Flowers. Plaintiffs in the lawsuit filed by landlords include Kralicek and Flusche LLC, Reith Properties LLC, Sam Reith, Neal Morrison, Suzanne Morrison Holloway and James Westpfahl.

A call to Whirlpool's corporate offices were not returned.

A special reception is being held on Thursday May 30, at Arvest Ballpark as general manager Eric Edelstein passes the torch to Justin Cole, who will takeover general management for the Northwest Arkansas Naturals.

Edelstein is leaving to take over as executive vice president and chief operating officer of the Reno Aces, a Triple-A affiliate of the Arizona Diamondbacks.

New Naturals General Manager Justin Cole is anxious to meet and greet guests and team supporters.

The reception will be held from 5 to 6 p.m. in the Sam's Club Community Room at the ballpark. Snacks and beverages will be provided.
 
The Naturals host the Corpus Christi Hooks that evening at 7 p.m.

Ben Aldama, dean of the adult education program at NorthWest Arkansas Community College, received the John and Suanne Roueche Excellence Award.

The recognition celebrates excellence in teaching. The award is named for John E. and Suanne D. Roueche, leaders in the community college field and early proponents of the idea that teachers have major responsibility for how well students perform in the classroom. The two have been partners and friends of the League for Innovation for more than 35 years.

Aldama has served the community college since 2002.

He said receiving the award is a “tremendous honor that he shares with his entire team.

“We have a great team of educators whose priority is our students’ achievement.  I love coming to work every morning,” Aldama said.

Dr. Becky Paneitz, describes Aldama as “an outstanding example of the college’s commitment to its learners and to the institution’s founding pillars of quality, accessibility and affordability.”

That didn’t last long.

Gary Blan stepped down as CEO of Sparks Health System in Fort Smith and Summit Medical Center in Van Buren less than three months after being named to the job.

The two hospitals are owned by Naples, Fla.-based Health Management Systems.

Donna Bragg, Sparks spokeswoman, said Blan left for personal reasons.

Blan, who retired Jan. 1, 2008, as president and CEO of Saint Clare’s Health System, began the Sparks and Summit CEO job on March 19.

When he retired from his St. Clare's post, Blan had 35 years in the medical field, with 27 of those as a CEO of a hospital or health system. 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.

Blan was picked to succeed 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.

America's Car-Mart’s efforts to grow at 10% annually remain intact despite missing Wall Street estimates for bottomline profits in the quarter ending April 30.

The Bentonville-based buy here, pay here car dealer posted net income of 92 cents per share, or $8.78 million, in its fourth quarter of fiscal 2013. Profits slipped from 97 cents per share or $9.63 million in the same period last year.

Company management notes the prior-year results include an extraordinary 9-cent per share gain related to lower credit losses of $1 million, which made for a tough comparison in the quarter.

Car-Mart also narrowly missed Wall Street’s consensus estimate for net income of 93-cents per share, but delivered big on topline revenue gains up 10.6% to $125.53 million in the recent quarter.

For the full year, Car-Mart grew net income by 3.7% on a per-share basis only, as the company continues to aggressively repurchase stock, buying back 25% of its outstanding shares over the past year.

Car-Mart posted net income of $32.125 million or $3.36 per share, for the full fiscal year ending April 30. Profits compared to $32.947 million, or $3.24 per share in the prior year period.

CEO Hank Henderson said he is pleased with the results for the quarter and the full year and remains excited about the future.

“We opened 10 new dealerships during the year, four of which were opened during the fourth quarter. We couldn't be happier with our expansion department and the great work being done by that group,” he said.

Henderson said the company continues to invest in its infrastructure with a rewrite of the firm’s operational software underway, which is expected to increase efficiencies at the lot level and is also important for the firm’s future growth plans.

Total revenue topped $415.74 million, up 7.5% from the prior full year period. Lots sold an average of 28.8 cars a month, up a fraction from 28.6 last year. Car-Mart sold 40,737 cars and trucks the past year, 8% more units than it sold in fiscal 2012. The average retail price rose to $9,721 up less than 1% from the prior year.

Same-store sales, a key metric for retail operations, rose 3.3% for the full year, slimmer than the 7% growth report in the prior year.

While Car-Mart is a used car dealer, the company’s real business is finance with receivables totaling $363.39 million, up 14.7% from a year ago. By extending credit to its customers, who may not qualify for traditional financing, Car-Mart has grown a buyer base of some 48,000 accounts. Henderson said at lots opened 10 years or more, up to 50% of the auto sales are to repeat customers. It’s a formula that has worked for the past 32 years and allowed the company to grow to 124 stores and counting.

"We are pleased with our top line growth and our sales volume productivity improvements especially in light of the challenging macroeconomic environment coupled with some additional competitive pressures from the funding side. As we anticipated, in our efforts to attract and retain better customers, many of whom are long-term repeat customers, we did lengthen our overall contract terms (to 29.3 months up from 28.1 at this time last year) which contributed to lower collections and a higher provision for credit losses,” Jeff Williams, chief financial officer.

The company set aside $96,035 for provisions to cover losses related to repossessions last year, up 17.6% from the prior year.

Higher provisions do have a negative impact on net profitability in the short term.

“We fully expect to earn acceptable cash-on-cash returns supporting our decision to attract and retain better customers through slightly longer terms and somewhat lower down payments in this competitive environment," Williams said.

Seeking Alpha notes Car-Mart is profitable and trading a fair price, citing the company with good growth potential, which if sustained over the next three years at 10% could produce a share price of $74 (14-times annual earnings of $5.32).

Car-Mart shares (NASDAQ: CRMT) closed Thursday (May 23) at $46.04, down 29 cents ahead of the earnings announcement.

Analysts also note Car-Mart is not borrowing excessively to finance its growth, which has allowed it to be aggressive with stock repurchases.

Car-Mart management will hold a conference call Friday morning. The City Wire will update this story as needed following the call.

The famed hotel developer John Q. Hammons died Sunday in Springfield, Mo., the home of his company that developed 210 properties in 40 states. He was 94.

Northwest Arkansas and Fort Smith were beneficiaries of his investments. Hammons work in the two areas include the convention center in Springdale and the Embassy Suites and John Q. Hammons Center in Rogers, and the original ownership of the Holiday Inn in downtown Fort Smith followed by construction of the Marriott Courtyard in downtown Fort Smith near the Fort Smith Convention Center.

Hammons’ company also owns the Embassy Suites properties in Hot Springs and Little Rock and the Hampton Inn & Suites in Springdale.

Hammons, in the business for more than 52 tears passed away at Elfindale Manor in Springfield, according to an obit on the Hammons website.

The obit notes that Hammons grew up in Fairview, Mo., near Joplin, during the Great Depression. He earned his degree from Southwest Missouri State Teachers College (now Missouri State University/MSU) in nearby Springfield and began his professional career as a junior high school teacher and basketball coach in Cassville, Mo.

“Over the course of his impressive 52-year career in the lodging industry, Mr. Hammons developed 210 hotel properties in 40 states and was honored with numerous lifetime achievement awards,” noted the obit. “He introduced the hospitality industry to signature-style, full-service hotels featuring atrium lobbies, expansive meeting and convention space, large guest rooms, podium check-in stations, and complete business traveler amenities that have become staples in a guest’s exceptional experience.

Following several successful real estate ventures, Hammons partnered with Roy Winegardner to buy 10 Holiday Inn franchises from founder Kemmons Wilson. The partners would build more than 30 hotels by the late 1960s.

He then formed John Q. Hammons Hotels in 1969.

“Today the company operates 78 hotels/nearly19,000 guest rooms/suites and 5.4 million gross square feet of meeting and convention space in 24 states, and employs more than 8,500 exceptional associates. Mr. Hammons put his signature touch on enhancing hotel brands, such as Embassy Suites Hotels, Marriott and Renaissance. He also developed independent hotel gems, including Chateau on the Lake Resort, Spa & Convention Center in Branson, Mo. His legacy for excellence secured the ranking of the #1 Embassy Suites Hotel in the world for six consecutive years,” according to the obit.

Hammons was also known, especially in Springfield, for his philanthropy.

The obit noted that Hammons “donated hundreds of millions of dollars to the city of Springfield and other organizations over the last five decades.”

The largest donations include the Hammons Heart Institute and Hammons Life Line helicopter for St. John’s Regional Health Center in Springfield; the Hammons Student Center, Hammons Fountains, and Juanita K. Hammons Hall for the Performing Arts at Missouri State University; the Hammons School of Architecture at Drury University; Missouri Sports Hall of Fame; Kansas Sports Hall of Fame; LPGA sponsorships in Arkansas and Oklahoma; Nationwide Tournament sponsorship in Springfield at Highland Springs Country Club; and Hammons Field, an award-winning, 10,000-seat Double-A Minor League baseball stadium, which is home to the St. Louis Cardinals’ Double-A Minor League team, the Springfield Cardinals.

Mr. Hammons also donated $30 million to Missouri State University to build the JQH Arena, which opened in 2008.

Sales tax revenue to fund Fort Smith city operations continues to move in the wrong direction. For the first four reporting months of 2013, the collections are 1.55% below 2012 levels and 4.33% below budget.

Each of the city’s 1% sales taxes (1% for streets and 1% for water and sewer projects) collected $1.646 million in the April report, down 1.78% from the same period in 2012.

The collections in the April report were 4.66% below budget estimates. (Because the state of Arkansas has a two-month delay in reporting collections back to the cities, the city of Fort Smith — for budgeting purposes — has historically reflected the collections on a one-month delay. Which is to say, the tax collections remitted to cities in May are from taxes collected in March and transferred by merchants to the state in April.)

The dip in collections has resulted in city officials seeking 4% budget cuts from all departments.

For the first four reporting months of 2013, each of the 1% sales taxes generated $6.687 million, down compared to $6.792 million in the same period of 2012.

Collections in 2012 of the two 1% taxes totaled $39.21 million, slightly ahead of the $38.683 million during 2011. The 2011 collections were 3.9% above 2010 collections.

Fort Smith’s share of the county 1% sales tax in the April report is $1.276 million, down 2.63% compared to April 2012. The collection was down 4.99% compared to the revenue estimate.

For the first four months of 2013, the countywide tax has generated $5.186 million for Fort Smith, down 1.64% compared to 2012 and down 4.03% compared to budget forecasts.

The countywide tax collection is critical because the revenue is a little more than 40% of the city’s general budget of roughly $42 million. A majority of the general fund budget general supports fire, police and other critical city functions.

A REGIONAL LOOK
Outside of Fort Smith, collections are mixed and indicate flat consumer spending.

Crawford County collections for the first three reporting months of 2013 total $1.494 million, down from $1.515 million during the same period of 2012.

Van Buren collections for the first three reporting months total $1.683 million. The city began collecting an extra 1% tax in January to pay for emergency services upgrades, a new senior center and other improvements. The city collected $849,606 during the first three reporting months of 2012.

Sebastian County collections totaled $6.996 million during the first three reporting months of 2013, slightly ahead of the $6.98 million during the same period of 2012. Collections in Greenwood for the first three months totaled $482,638, slightly more than the $474,423 during the 2012 quarter.

PREVIOUS ANNUAL COLLECTION INFO (Fort Smith)
2% sales tax collection (1% for streets; 1% for water/sewer bonds)
2012: $39.210 million
2011: $38.683 million
2010: $37.229 million
2009: $37.554 million
2008: $41.226 million
2007: $37.858 million
2006: $36.840 million

Fort Smith portion of 1% countywide sales tax
2012: $15.279 million
2011: $15.15 million
2010: $14.89 million
2009: $15.04 million
2008: $16.61 million
2007: $15.15 million
2006: $14.71 million

Following the deadly tornado that struck Moore and Oklahoma City and the bumpy weather that rattled nerves across northwest Arkansas and the Fort Smith area in recent weeks, storm shelters were on many people's minds.

Nicole Bennett, owner of American Storm Shelters in Sallisaw, Okla., said her company had been flooded with inquiries ever since the first storms hit central Oklahoma.

"I get a lot of calls from customers when any storm hits," she said. "And I do things every year with (KFSM Chief Meteorologist) Garrett Lewis and The Weather Channel."

She said much of the calls are from people experiencing the "scare factor."

"Any time you have something of this magnitude, it makes a major impact because people have that scare factor."

While Bennett said the phone at her business had been ringing off the hook since yesterday, the storm season this year had actually been rather mundane.

"I've never had a year so slow until this happened," she said, adding that it had been the slowest storm season since 1972.

EveryTornado.net reported that only 185 tornadoes were reported in the United States so far this year. TornadoHistoryProject.com reported 741 total tornadoes in 1972, which Bennett said was the slowest storm season until now. Those numbers are in stark contrast to 2011, when the Project reported 1,691 tornadoes nationwide.

For homeowners and business owners looking to install a storm shelter, Bennett said there were many options ranging from a six person storm shelter to shelters that can hold a dozen or more.

Of course, with various sizes comes various prices. Basic, in-ground shelters start at around $3,000 and can hold six people, according to Bennett. For the same type of shelter large enough to house 12 people, she said the cost would increase to around $4,000.

Other types of storm shelter facilities include:
• Hillside storm shelters that can house 12 people and are handicap accessible. Price starts at $5,395;
• Patio tops flush with the ground and can house 12 people start at $5,895; and
• Safe rooms start at $4,295 for a room that can hold six people.

When considering a safe room, Bennett said it was important for homeowners to make sure the room is not exposed to the elements.

"You can build it when you're building the house or you can put them in a garage if you have an existing home," she said. "I don't like to do them freestanding. They're not adequate. It needs to have a structure around it."

Custom-designed safe rooms are also built for large corporations and schools, according to Bennett.

"Those normally go to daycare centers and we have one going to a school," she said.

Due to the large number of customer calls, crews were going to be busy doing installs for the next several months, Bennett said, likely stretching into October or November.

To try and avoid backlogs, she said American Storm Shelters employs both day and night crews to assemble the shelters while also employing three to four installers.

"When (a storm) hits and it's that much, you have to have enough units so you can get it out so people don't have to wait six to eight weeks for a storm shelter. We try to get them in in a fast time frame. That's why we keep a large team – you don't know when the next storm is going to hit."

And while the latest round of severe weather will be good for business, Bennett said that is nothing to take joy in.

"I cried yesterday watching the TV. Never do we want anyone to get hurt. With the schools, you couldn't help but sit there and cry," she said. "We run a business to save lives. We're human beings. We don't get excited about it. You get heartbroke because of the people who didn't get out of the path of the storm. That's really a hard thing to deal with."

The death toll from the tornado that struck Moore, as reported by the Oklahoma Medical Examiner's Office, is 24, including seven children. Four of the reported deaths occurred in Oklahoma City, according to Oklahoma City Police Chief Bill Citty.

President Barack Obama has declared five counties in Oklahoma disaster areas, including Cleveland and Oklahoma Counties, where yesterday's tornado traveled. In a speech to the nation this morning, Obama said the affected areas "would have all the resources that they need at their disposal."

Sen. Mark Pryor, D-Little Rock, released the following statement following Obama's speech in support of ongoing relief efforts in the affected areas: "My heart goes out to the families and communities affected by the severe storms in Oklahoma. Arkansas knows devastation, and we feel for Oklahoma’s enormous loss and suffering. But they’re not alone. With hard work and help from fellow Americans, they’ll rebuild, recover, and stand strong. Like I said when I cast my vote for the Hurricane Sandy Supplemental Disaster Assistance Appropriations bill in January, I’ll continue to support disaster relief for communities in need. Arkansas is here for you, Oklahoma."

The National Weather Service in Norman, Okla., issued a preliminary Enhanced Fujita Scale rating of an EF4 for the storm, meaning wind speed possibly reached 200 miles per hour. After a complete storm survey, the rating was revised to the rare EF5 strength.

Arkansas continues to push for growth in the information technology field. With the evolution of the companies that comprise this industry, the definitions of an IT firm have changed.

They include companies that host data, develop software, create programs, install hardware, design web sites, and build apps – just to name a few.

The monthly survey of employers released by the Arkansas Department of Workforce Services indicates that the state’s IT workforce – which employs an estimated 14,500 Arkansans as of March 2013 – has been relatively flat during the past year.

Employment in the information services sector in Arkansas has trended downward in the past 10 years, with the lowest point reached in February 2013 at an estimated 14,000 workers, according to the U.S. Bureau of Labor Statistics.

Sector employment is down almost 28% compared to March 2003 and down almost 18% compared to March 2008.

Between 1990 and March 2013, employment in the sector peaked at 21,300 in December 2000. The sector employed more than 20,000 in Arkansas until April 2004, when if fell to 19,900. Sector employment fell below 19,000 in February 2006, fell below 17,000 in November 2008, fell below 16,000 in October 2009, and fell below 15,000 in March 2011.

But those numbers could be deceiving, according to those in the field. Defining information technologies firms is a constantly moving target. And despite the shrinking numbers, talent does abound.

What is the state of the state’s workforce for information-based firms? Several Arkansas company leaders weigh in with thoughts on the subject.•

• Mainstream Technologies
John Burgess, CEO
Mainstream Technologies offers information technology services in the areas of outsourced software development, hosting and cloud infrastructure, and outsourced infrastructure management. It currently has around 50 employees and contractors, all based at its headquarters in Little Rock.

CEO John Burgess says Mainstream Technologies has been in a growth mode for the last two years, seeing a more than 30% leap in staff size.

“We recognize that we are going to be successful in our mission by attracting and retaining the very best talent. To that end, we work hard to position Mainstream as a desirable place to work for those people who excel in these technical fields and who appreciate being surrounded by other excellent people. We have been successful in finding candidates in central Arkansas who meet our skill and experience and requirements through a limited use of placement firms and a primary focus on leveraging the professional networks of our existing associates. We have great people and they are genuinely interested in helping us recruit other great people who they have worked with during their careers.

“One of the poorly understood drivers in our industry is the rapid turnover of technology skills. IT is one of the few career choices where it is almost a liability to have a long tenure with the same technical skill because the field is simply evolving that quickly. Almost constant training and re-training is required to keep one’s technical resume current and relevant. Hardware, software and infrastructure get incrementally cheaper per capacity unit each year leaving labor as the single biggest target for cost-cutting efforts. This has been a driving force behind the adoption of the outsourcing model as IT decision makers keep looking for ways to do more with less.”

• Kirkham Systems
Tom Kirkham, president
Fort Smith-based Kirkham Systems specializes in providing one-stop IT services for small businesses, computer security, disaster recovery and back-up, and managed services for servers, routers, and networking. Kirkham Systems also does website design and integration for its clients, which include TheCityWire.com news service.
With seven full-time employees and freelancers, Kirkham operates in an efficient manner and is fairly exclusive when it comes to new hires.

“In our region, we have no trouble attracting well-qualified candidates. The IT industry overall is going through changes and many companies are downsizing their IT staff and outsourcing to companies like us.

“The IT industry attracts what I refer to as firemen – personnel that are extremely adept at putting out fires. What we find is that it is important for IT personnel to not only possess these skills, but also have organizational and efficiency skills. In IT, the best outcome is planning for problems and disasters, rather than only responding to them.

• Matmon
Matt Olson, president/CEO
Matmon has over 16 years of experience in designing custom websites and delivering Internet marketing services with clients ranging from local businesses to international brands. The Little Rock-based firm provides research, branding, site design, programming, testing, hosting and go-to-market strategies. Currently, Matmon employs 16 full-time and freelance employees.

Matt Olson, President and CEO, says the talent pool in Arkansas is available, but it requires particularly solid searching skills.

“We may not have enough positions to fill at the moment to give you a true answer regarding the talent pool in Arkansas. Our experience when looking for new talent in the past was that it was a bit costly to advertise a position and we sometimes have trouble determining where to advertise. Arkansas has provided Matmon with talented, loyal and driven to continually learn talent thus far and we have nothing but great things to say regarding our local community and schools.

“With the industry continually evolving, it’s important for our company to stay educated on new advancements when they’re introduced. We use the Internet to stay current on these new trends by attending online webinars, watching video tutorials, and participating in forum discussions with fellow industry professionals. After learning about new technology advancements, it’s essential to test their features and functionality in real world situations. Each new project is an opportunity to incorporate a new method or technology and analyze the benefits it brings to our clients.”

• Inuvo, Inc.
Rich Howe, chairman & CEO
Inuvo recently moved its corporate headquarters from New York to Conway. The tech firm develops consumer applications for the Internet and delivers targeted advertisements onto websites owned by partners and the company. It topped $53 million in revenues last year.

Inuvo said at its January 2013 announcement to relocate in Arkansas that it would hire 50 new employees during the next four years and relocate many of its senior leadership team to the state.

The company has a highly specialized workforce that requires knowledge of network equipment, cloud computing technology, enterprise support, and a variety of open source software programming, deployment and usage.

“Currently we have approximately 14 developers, database administrators, data architects and system administrators.”

“The talent pool in Arkansas is very strong with many IT people well-trained at companies like Acxiom, HP, Windstream and Alltel. Overall, the tendency has been towards vertical expertise, meaning the people we have interviewed are great at a few things and still learning about a lot of things.”

Roughly 100 members of OUR Walmart, a group of employees who have been outspoken about work conditions and low wages, said they are striking this week in the San Francisco Bay Area, Massachusetts and Miami.

The Organization United for Respect at Walmart (OUR Walmart) is an affiliate of the United Food and Commercial Workers International Union.

The group will caravan through 30 cities this week speaking their minds about “retaliation” they say is happening because they continue to raise awareness about ongoing “injustices” at the world’s largest retailer.

OUR Walmart held a conference call today (May 28) and said the group will arrive in Bentonville on Saturday (June 1) undaunted by the lawsuit filed recently by Wal-Mart Stores Inc. that aims to prevent trespassing on private property which the company said is disruptive to its business.

The group said it will release further details later this week about planned protests in Bentonville and at the company’s annual shareholder meeting in Fayetteville set for June 7.

Wal-Mart spokesman Dan Fogleman said the annual shareholder's meeting is a time of a celebration as the company invites thousands of its employees from around the world to take part in the festivities which also includes interaction with company leadership.

"The union and its OUR Walmart subsidiary are comprised of a very small number of people, most of whom aren't even Wal-Mart associates and don't represent the views of the vast majority of people who work at Wal-Mart," Fogleman said.

The retailer recently launched a media campaign to spotlight various employees as it continually works to beef up its corporate image. And yesterday the retailer kicked off its hiring initiatives to employ 100,000 veterans returning from active service over the next five years.

Wal-Mart also proudly states on its website, “About 75% of our store management teams started as hourly associates, and they earn between $50,000 and $170,000 a year — similar to what firefighters, accountants, and even doctors make. Every year, Walmart promotes about 170,000 people to jobs with more responsibility and higher pay.”

The retail giant employs roughly 1.4 million workers in the U.S. and some 2.2 million worldwide.

Wal-Mart Stores Inc. has pled guilty to dumping hazardous waste across California between 2003 and 2005 incurring $81 million in fines. As part of the plea, the company will also clean up dump sites in Missouri, according to media reports.

The plea agreements announced Tuesday (May 28) put an end to an investigation involving more than 20 prosecutors and 32 environmental groups over the past eight years.

But it also blackens the retailer’s eye given it has worked so hard to set higher sustainability and global responsibility standards for itself and its extensive supply chain. Last month Wal-Mart released a 174-page report on its exhaustive sustainability efforts from lowering carbon greenhouse emissions to more ethical sourcing of the products it sells around the globe.

The retailer said in a statement following Tuesday’s settlement it remains committed reducing hazardous wastes through a number of initiatives resulting in a 30% reduction since 2010.

Retail sustainability expert Stacy Mitchell said Wal-Mart wants to be seen as a leader for its sustainability efforts, but other retailers like Kohl’s, Staples, and Whole Foods are much further along in the process of being a sustainable company with respect to their overall green power usage. Mitchell is a research analyst at the Institute for Local Self Reliance in Portland, Maine.

The plea entered Tuesday in San Francisco federal court involved misdemeanor counts of negligently dumping pollutants from its stores into sanitation drains across the state, according to Wal-Mart spokeswoman Brooke Buchanan.

"We have fixed the problem," Buchanan said. "We are obviously happy that this is the final resolution."

TRAINING AND GOALS
Court documents indicate Wal-Mart did not properly train its employees on how to handle and dispose hazardous materials at its stores. Buchanan said employees are better trained on how clean up, transport and dispose of dangerous products such as fertilizer that are spilled in the store or present with damaged packaging. She said workers are trained on how to handle hazardous packages and they have scanners that tell them whether a damaged package contains toxic material.

In 2010, the company agreed to pay $27.6 million to settle similar allegations made by California authorities that led to the overhaul of its hazardous waste compliance program nationwide.

Wal-Mart CEO Mike Duke notes in the recently published global responsibility report the retailer has three main goals it continues to pursue as a leader:
1) To be supplied 100% by renewable energy;
2) To create zero waste; and
3) To sell products that sustain people and the environment.

The retailer also says it’s focused on transparency between itself and its suppliers about the efforts under way. But the 174-page report released by Wal-mart did not mention the pending charges on illegal dumping. Wal-Mart did say in the report it would hold its suppliers to stricter standards as it began auditing factories in China in 2008 for environmental criteria such as air emissions, wastewater discharges and management of toxic substances and hazardous waste disposal.

This year, Wal-Mart also began using The Sustainability Index to influence which products get on the shelf. Buyers will be required to set specific sustainability objectives that will tied to their annual reviews.

EDF RESPONSE
The Environmental Defense Fund is on the ground in Bentonville to assess supplier reactions to this new criteria. Alisha Staggs, a project manager at the EDF in Bentonville,  recently wrote in a blog that the retail giant’s sustainability index requirements were an ambitious goal, noting that there would likely be some who “think Wal-Mart is taking this too far.”

By the end of 2017, Walmart will buy 70% of the goods it sells in U.S. stores and U.S. Sam’s Clubs from suppliers who use The Sustainability Index to evaluate and share the sustainability of products.

For example cereal makers like Kellogg's, Post, and General Mills will be compared against each other based on their sustainability score, and buyers who make the decisions about what gets on the shelf will have a financial incentive to go with the most sustainable products. Consumers will also see best- and worst-in-class ratings as well.

Staggs notes the EDF is onboard with Wal-Mart’s sustainability index goals saying this can push hard to achieve the kinds of transformational change needed.

“With over 100,000 suppliers, Wal-Mart has the ability to use the Sustainability Index to move entire industries to go beyond what is required by law, benefiting consumers, workers and the planet,” Staggs notes.

Mitchell said Wal-Mart pivoted to the supplier emphasis in the last year while other goals once stated where abandoned. Mitchell said Wal-Mart does a great job picking certain areas to focus on, but turns a blind eye to other issues like responsible land use as it continues to build sprawling, single-story structures five miles within its other stores.

She gives Wal-Mart a lot of credit for generating media attention around the solar panels in its California and Arizona stores, but she said solar power is about the cheapest source of electricity in these markets today.

“Wal-Mart takes a lot of credit for what they see as sustainable,” Mitchell said.

She adds there is still lots of room for improvement in Wal-Mart’s sustainability goals but it may be easier and cheaper for the retailer to shift more focus on the supply chain for which they can take also credit.

Shareholders of Smithfield Foods got a huge payday Wednesday (May 29) when the pork company announced a blockbuster $7.1 billion acquisition by Shuanghui International Holdings, one of China’s largest meat companies.

It’s the largest acquisition of a U.S. company by a Chinese firm to date.

It’s the first time a Chinese company has gone after a major player in the U.S. meat industry, but given the growing demand for pork in China, and Smithfield’s ability to deliver product without ractopamine (a feed ingredient banned by Chinese and Russian markets), the deal makes sense,” said Steve Kay, analyst and publisher of Cattle Buyers Weekly.

Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Shuanghui will acquire all of the outstanding shares of Smithfield for $34 per share in cash. The purchase price represents a premium of approximately 31% over Smithfield's closing stock price on May 28, the last trading day prior to announcement.

Shares rose 25% to $32.48, up $6.50 on the morning’s news as regulatory concerns were raised by analysts who said Shuanghui has experienced serious food safety gaffes in recent months which is a concern given Smithfield’s presence as the largest pork processor in this country.

Company officials call the deal a win-win.

"This is a great transaction for all Smithfield stakeholders, as well as for American farmers and U.S. agriculture," said C. Larry Pope, CEO and president of Smithfield. "We have established Smithfield as the world's leading and most trusted vertically integrated pork processor and hog producer, and are excited that Shuanghui recognizes our best-in-class operations, our outstanding food safety practices and our 46,000 hard-working and dedicated employees. It will be business as usual -- only better -- at Smithfield.”

Pope does not anticipate any changes in Smithfield’s business operations in the United States and throughout the world.

"This is not a strategy to import Chinese pork into the United States ... this is exporting America to the world,” he added.

"People have this belief ... that everything in America is made in China. Open your refrigerator door, look inside. Nothing in there is made in China because American agriculture is the most competitive and efficient in the world. This is the one place America can absolutely compete," Pope said during the conference call.

Shuanghui chairman Wan Long said the two companies bring rich histories and decades of processing experience to the table.

“Smithfield is a leader in our industry and together we will be able to meet the growing demand in China for pork by importing high-quality meat products from the United States, while continuing to serve markets in the United States and around the world. The combination creates a company with an unmatched set of assets, products and geographic reach," Long said.

The two companies have had a working relationship for several years and Shuanghui said it will continue to work with American farmers, producers and suppliers who have been critical to Smithfield's success.

The deal must pass regulatory muster and one group, is already claiming Smithfield’s board may have breached their fiduciary duties in connection with the proposed acquisition.

A shareholder rights law firm, Johnson & Weaver,  is investigating whether the board of directors breached their fiduciary duties to stockholders by failing to satisfactorily shop the company before entering into this agreement.

Jim Baker, lead analyst for Johnson & Weaver, said "Shuanghui International’s offer appears to be inadequate and not in the best interest of Smithfield Foods shareholders."

Baker noted that Smithfield Foods is trading at a low multiple relative to this year’s expected earnings. Additionally, one analyst has a target price of $48.00, greater than the $34.00 buyout price.

The second-largest shareholder for Smithfield Foods Inc. recently asked that the world's largest pork producer to consider splitting up the company.

Last month Continental Grain Co. filed a presentation with the Securities and Exchange Commission furthering its recommendation.

Continental said Smithfield might make more money if it splits up into three units — a hog producing unit, fresh pork and packaged meat business and an international company.

Following that letter, Smithfield said in a statement that it would review the suggestions "in due course."

Pope said Wednesday, "This transaction provides Smithfield shareholders with significant and immediate cash value for their investment, and ensures that Smithfield will continue to execute on its strategic priorities while maintaining our brand excellence, community involvement, and our commitment to environmental stewardship and animal welfare. Our board of directors is pleased with the outcome of the process we followed leading to this transaction, and we unanimously believe that this combination with Shuanghui is in the best interests of the Company, our shareholders and all Smithfield stakeholders."

The deal allows Pope to continue as CEO and president of Smithfield, and the management teams and workforce of Smithfield's independent operating companies will continue in place after the transaction.

The closing of the transaction is subject to certain conditions, including, among others, approval by Smithfield's shareholders, the receipt of approval under applicable U.S. and specified foreign antitrust and anti-competition laws, The Committee on Foreign Investment in the United States and other customary closing conditions.

The deal is expected to close in the second half of 2013.

Through nine months of this year Smithfield has posted net profits of $281.8 million, up from $154.1 in the year-ago period.

Smithfield is a competitor to Tyson Foods for pork sales across the globe. Tyson’s shares also rose on the acquisition news trading up roughly 1.9% at $25.27 on Wednesday morning.

Brian Monahan, managing partner at Interpublic Group’s Magna Global, was named vice president of marketing for Walmart.com, the retailer said Tuesday (May 28).

Monahan will lead overall brand strategy and cross-channel marketing for Walmart.com and reports to Joel Anderson, president and CEO of Walmart.com U.S.

As managing partner heading Magna’s Intelligence Practice, Monahan led forecasting, insights and negotiation strategy across all media channels for IPG clients. He is credited with securing key partnerships with AOL, Facebook, Google, Microsoft and Yahoo. 

Based in Silicon Valley, Walmart Global eCommerce oversees all e-commerce for Walmart, in the U.S. and globally. It operates ten e-commerce sites around the world, including Walmart.com in the U.S., and sites in China, Brazil and the UK. Its technology group, @WalmartLabs, is a hub of innovation for the business.

The workforce size in Northwest Arkansas grew by almost 5,000 in April compared to March, with the number of employed up more than an estimated 5,400 – two clear signs of a thriving regional economy.

The April jobless rate in the region was 5.1%, better than the 5.5% in March and better than the 5.3% in April 2012.

Seven of the eight metro areas in or connected to Arkansas had jobless rate decreases in April compared to April, but had jobless rate increases compared to April 2012. Only the Northwest Arkansas area saw jobless rate improvements compared to April and the April 2012 period.

During April, the lowest metro jobless rate in the state was in Northwest Arkansas with 5.1% and the highest rate was 9.2% in the Pine Bluff area.

NWAMETRO NUMBERS
According to figures released Wednesday (May 29) by the U.S. Bureau of Labor Statistics, the size of the Northwest Arkansas regional workforce during April was 239,646, up from the 234,757 during March, and ahead of the 234,287 during April 2012.

Northwest Arkansas continues to trend upward in that category. The average annual monthly labor size was 231,461 during 2012, 227,938 during 2010 and 225,177 during 2009.

The number of employed during April rose to 227,383 from 221,937 in March. The April employment was also higher than the 221,842 in April 2012.

Following are other key figures from the BLS metro report.
• Unemployed persons in the region totaled 12,264 during April, below the 12,820 during March and below the 12,442 during April 2012.

• The Northwest Arkansas manufacturing sector employed an estimated 26,400 in April, down compared to 27,000 in March, and below the 26,700 during April 2012. Sector employment is down more than 18% from more than a decade ago when April 2002 manufacturing employment in the metro area stood at 34,300.

• Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 50,100 in April, up from 49,100 during March, and up from the 47,300 during April 2012. Employment in the sector is slightly off from the high of 50,500 posted in April 2006.

• Employment in the region’s tourism industry was 21,600 during April, up from 20,500 in March and up from 20,300 during April 2012. The April employment is a new record for the sector, although the figure could be revised in subsequent reports.

• In Education & Health Services, employment was 25,300 during April, up from 24,900 during March and up from 23,500 during April 2012.

• In the Government sector, employment was 30,500 during April, down from 30,800 in March and up compared to 30,000 during April 2012.

NATIONAL NUMBERS
Unemployment rates were lower in April than a year earlier in 276 of the 372 metropolitan areas, higher in 78 areas, and unchanged in 18 areas, noted the broad BLS report.

The U.S. unemployment rate in April was 7.1%, down from 7.7% from a year earlier. Arkansas’ jobless rate was 7.1% in April, down from 7.2% in March and below the 7.3% rate in April 2012.

Oklahoma’s jobless rate during April was 4.9%, down from 5% in April, and below the 5% during April 2012. The Missouri jobless rate during April was 6.6%, compared to 6.7% in March and 7% during April 2012.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
April 2013: 5.1%
April 2013: 5.5%
April 2012: 5.3%

Fort Smith
April 2013: 7.2%
April 2013: 7.9%
April 2012: 7.1%

Hot Springs
April 2013: 7.1%
April 2013: 7.7%
April 2012: 7%

Jonesboro
April 2013: 6.5%
April 2013: 6.9%
April 2012: 6.4%

Little Rock-North Little Rock-Conway
April 2013: 6.2%
April 2013: 6.7%
April 2012: 6.1%

Memphis-West Memphis
April 2013: 9%
April 2013: 9.3%
April 2012: 8.5%

Pine Bluff
April 2013: 9.2%
April 2013: 9.8%
April 2012: 8.5%

Texarkana
April 2013: 6.7%
April 2013: 6.9%
April 2012: 6.5%

NORTHWEST ARKANSAS METRO AREA HISTORY
Past annual average unemployment rates
2012: 5.6%
2012: 6.2%
2010: 6.5%
2009: 6.1%
2008: 4.1%
2007: 3.8%
2006: 3.6%
2005: 3.3%
2004: 3.8%
2003: 3.7%
2002: 3.3%
2001: 3%
2000: 2.9%

Gains were seen in the size of the workforce and the number of employed in the Fort Smith region during April, but the numbers are still below year-ago figures.

April’s 7.2% jobless rate was well above the 7.9% in March, but below the 7.1%  in April 2012, according to figures released Wednesday (May 29) by the U.S. Bureau of Labor Statistics. April was the 52nd consecutive month the Fort Smith metro jobless rate has been at or above 7%.

Seven of the eight metro areas in or connected to Arkansas had jobless rate decreases in April compared to March, but had jobless rate increases compared to April 2012. Only the Northwest Arkansas area saw jobless rate improvements compared to March and the April 2012 period.

During April, the lowest metro jobless rate in the state was in Northwest Arkansas with 5.1% and the highest rate was 9.2% in the Pine Bluff area.

FORT SMITH METRO NUMBERS
The size of the Fort Smith regional workforce during April was 131,673, up slightly from the 131,517 during March, but below the 132,517 during April 2012. The regional labor force consistently remained above 130,000 beginning in March 2004, but fell below 130,000 in April. The labor force reached a high of 139,544 in June 2008.

The number of employed during April rose to 122,188, an improvement over the 121,156 in March. However, the April employment was below the 123,165 in April 2012.

Following are other key figures from the BLS metro report.
• Unemployed persons in the region totaled an estimated 9,485 during April, better than the 10,361 during March, but more than the 9,352 during April 2012.

• The Fort Smith area manufacturing sector employed an estimated 18,600 in April, unchanged compared to March, and below the 19,200 during April 2012. Employment in the sector is down more than 35% from more than a decade ago when April 2001 manufacturing employment in the metro area stood at 30,700. Also, the annual average monthly employment in manufacturing has fallen from 28,900 in 2005 to 19,200 in 2012 – the first year the average has dropped below 20,000 since surpassing that level.

• Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 24,900 in April, up from 24,800 in March, and above the 23,900 during April 2012. Employment in the sector is off from the high of 25,700 posted in March 2007.

• Employment in the region’s tourism industry was 9,100 during April, down from 8,800 in March and unchanged compared to April 2012. The sector reached an employment high of 9,800 in August 2008.

• In Education & Health Services, employment was 17,500 during April, down from 17,600 in March and above the 17,000 during April 2012.

• In the Government sector, employment was 19,600 during April, down from 19,900 in March and unchanged compared to April 2012.

NATIONAL NUMBERS
Unemployment rates were lower in April than a year earlier in 276 of the 372 metropolitan areas, higher in 78 areas, and unchanged in 18 areas, noted the broad BLS report.

The U.S. unemployment rate in April was 7.1%, down from 7.7% from a year earlier. Arkansas’ jobless rate was 7.1% in April, down from 7.2% in March and below the 7.3% rate in April 2012.

Oklahoma’s jobless rate during April was 4.9%, down from 5% in March, and below the 5% during April 2012. The Missouri jobless rate during April was 6.6%, compared to 6.7% in March and 7% during April 2012.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
April 2013: 5.1%
March 2013: 5.5%
April 2012: 5.3%

Fort Smith
April 2013: 7.2%
March 2013: 7.9%
April 2012: 7.1%

Hot Springs
April 2013: 7.1%
March 2013: 7.7%
April 2012: 7%

Jonesboro
April 2013: 6.5%
March 2013: 6.9%
April 2012: 6.4%

Little Rock-North Little Rock-Conway
April 2013: 6.2%
March 2013: 6.7%
April 2012: 6.1%

Memphis-West Memphis
April 2013: 9%
March 2013: 9.3%
April 2012: 8.5%

Pine Bluff
April 2013: 9.2%
March 2013: 9.8%
April 2012: 8.5%

Texarkana
April 2013: 6.7%
March 2013: 6.9%
April 2012: 6.5%

FORT SMITH METRO AREA HISTORY
Past annual average unemployment rates
2012: 7.7%
2011: 8.6%
2010: 8.2%
2009: 7.9%
2008: 4.8%
2007: 5.3%
2006: 4.9%
2005: 4.5%
2004: 5.2%
2003: 5.5%
2002: 5%
2001: 4.2%
2000: 3.7%