Consumer spending in May helped boost sales tax revenue 5.86% higher across Northwest Arkansas' four largest cities, according to the July reports from Fayetteville, Springdale, Rogers and Bentonville.

Cumulative collections in these anchor cities totaled $4.407 million in July, a gain of more than $244,000 from the year-ago period.

July revenue represents taxes on goods sold and services rendered in May. The cities collect a local 2% tax which is split evenly between their budgets and their parks. This report reflects the 1% going toward the cities’ general operating funds.

July Sales Tax Revenue
Bentonville: $816,897, up 8.65%
Rogers: $1.177 million, up 7.16%
Springdale: $907,096, up 4.64%
Fayetteville: $1.505 million, up 4.16%

Bentonville Finance Director Denise Land noted in an email that the city is tracking better than budget and slightly ahead of last year. The city budgeted revenue of $720,000 per month and has collected roughly $800,000 on average, according to city records.

Land recently attributed the stronger collections this year to additional traffic related to Crystal Bridges Museum of American Art, but added that the business economy is also better with more travelers coming in and out of the region.

Through the first half of  2013 passenger enplanements at Northwest Arkansas Regional Airport were up 3.18% from a year ago. More than 80% of that traffic is business-related travel.

Rogers, a major retail hub in Northwest Arkansas, continues to attract new businesses that keep fueling the tax collections higher. Monthly collections have topped $1 million for 15 consecutive months. City officials credit a steady stream of new eateries and retail that have come online this  year.

Damgoode Pies recently opened a large restaurant at 3604 W. Walnut in Rogers, The pizza restaurant moved into a venue vacated by The Rib Crib more than four years ago. Dickey’s Barbecue and Slim’s Chicken’s are the latest eateries to call the bustling Pinnacle area home.

Slim’s recently relocated to Pinnacle Hills Parkway from its former site at 3600 W. Walnut.

The growth in Washington County is a little slower but Springdale and Fayetteville continue to stay ahead of budget with their collections this year.

Springdale city officials say they are pleased with the steady collections as they continue to invest in infrastructure projects that they hope will spur future development near Arvest Ballpark once the Don Tyson interchange off of I-540 is completed.

In Fayetteville, city officials need to see a 2% gain in collections to stay ahead of budget and so far this year, but revenue is trending up an average of 4%.

Sales tax collections are a lagging indicator so it’s important to put the numbers in context with their time sequence of events such as consumer spending reports from the same month.

Deloitte senior economist Daniel Bachman said in May: “The labor market has stabilized, and initial unemployment claims fell nearly 6% since this time last year, while real home prices continued to climb and real wages crept up.”

Despite snow falling in Northwest Arkansas on May 1, consumer spending managed to rebound throughout the country based on an uptick of 0.6% in May’s retail sales. Americans spent more on cars, home improvements and sporting goods, according to the National Retail Federation. Since May, consumer sentiment has continued to rise and retail sales have held their own with the exception of softness in the fast-food restaurant business.

Sale Tax Collections(June report; year over year)
Rogers
2013: $8.564 million
2012: $7.531 million
13.71%

Bentonville
2013: $5.418 million
2012: $4.829 million
12.19%

Fayetteville
2013: $10.432 million
2012: $10.022 million
4.09%

Springdale
2013: $6.034 million
2012: $5.891 million 
2.42%

Three groups that track the U.S. transportation sector – a bellwether for the U.S. economy – suggest uneven patterns will continue and the “wobbly nature” of recent economic trends will become “more pronounced.”

The American Trucking Associations’ Truck Tonnage Index rose just 0.1% in June after a 2.1% rise in May. Year-to-date, the index is up 4.7% compared to the same period in 2012.

The not-seasonally adjusted index, which represents the real change in tonnage hauled by the fleets, equaled 125.9 in June, which was 5% below the previous month.
 
“The fact that tonnage didn’t fall back after the 2.1% surge in May is quite remarkable,” ATA Chief Economist Bob Costello said in a statement. “While housing starts were down in June, tonnage was buoyed by other areas like auto production which was very strong in June and durable-goods output, which increased 0.5% during the month according to the Federal Reserve. ... The trend this year is heavy freight, like autos and energy production, is growing faster than lighter freight, which is pushing truck tonnage up.”

Trucking serves as a barometer of the U.S. economy, representing 67% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods, according to the ATA. Trucks hauled 9.2 billion tons of freight in 2011. Motor carriers collected $603.9 billion, or 80.9% of total revenue earned by all transport modes.

‘UP AND DOWN TRACK’
The Cass Freight Index for June was up 0.9% compared to May, but down 1.5% compared to June 2012.

“The transportation sector continues to follow the up and down track it’s been on for the last two and half years. The economy in general has exhibited more favorable trends in the last month, which should boost activity for the transportation industry over the next several months,” explained Rosalyn Wilson, a supply chain expert and senior business analyst with Vienna, Va.-based Delcan Corp., who provides economic analysis for the Cass Freight Index.

Cass uses data from $22 billion in annual freight transactions processed by its information processing division to create the Index. The data comes from a Cass client base of 350 large shippers.

Wilson said domestic and global economic reports indicate that consistent economic growth patterns are unlikely.

“Despite the fact that the economy, both domestically and globally, shows no real signs of change other than more of the up and down movements we’ve been watching for close to three years, the transportation sector should experience some noticeable trends. These trends will probably be of the wobbly nature we have become accustomed to, but more pronounced,” Wilson wrote.

DRIVER SHORTAGE
She also expects the new hours-of-service rules to impact the entire U.S. economy, “as virtually all products are moved on a truck at some point.” The new rules increase restrictions on how long and when drivers can operate a truck. Wilson said the new driver rules and a driver shortage are likely to increase shipping rates. Higher shipping rates often translate into higher shelf prices.

“Projections are that the driver shortage could climb to 100,000 by year end, pushing up wages and benefits to attract and retain drivers. Given that we are already at or close to a one hundred percent turnover rate for drivers, these labor costs could rise quickly as qualified drivers jump companies in search of better pay,” WIlson estimated. “Rail intermodal will serve as a pressure valve, absorbing more freight, but truck shortages will begin to manifest as we enter the traditional holiday shipping period, pushing up rates.”

Brad Delco, a transportation industry analyst for Little Rock-based Stephens Inc., said freight volumes were lower than expected during the second quarter, with improvements seen in late June.

“Heading into 2Q'13 truckload earnings, we see little to write home about as the freight environment for the most part remained relatively balanced from a supply / demand perspective,” Delco wrote in a July 16 trucking industry earnings preview. “However, after a rough start, with April demand trends lagging year-ago levels, we did see modest sequential improvement in May with late June trends that accelerated to levels above prior-year levels.”

INDUSTRY CHALLENGES CONTINUE
Delco also thinks the truckload sector “remains challenged” with driver shortages, difficulty in raising shipping rates and the hours-of-service rule changes.

In the note, also authored by associate analyst Ben Hearnsberger, Delco made the following observations.
• Freight volumes were mostly lower than expected in the quarter though we have heard that the last two weeks of June were significantly better.”

• Difficult weather conditions were likely the culprit early in the quarter, but improving weather led to tightening capacity later in the quarter as seasonal freight picked up (home and garden, beverage and produce).

• Our private checks have indicated that the last couple of weeks in June were significantly better on a year-over-year basis with strength evenly spread out across the country, except for the Pacific Northwest.

• All things combined, we believe shipment volumes were incrementally lower in 2Q than expected which should negatively impact utilization.

Sales tax revenue in Fort Smith continues to head in the wrong direction, with the June report showing revenue down more than 4% compared to budget expectations. June also marked three consecutive reports in which collections were down compared to 2012.

Each of the city’s 1% sales taxes (1% for streets and 1% for water and sewer projects) collected $1.608 million in the June report, down 1.22% from the same period in 2012, and 4.18% 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 July are from taxes collected in May and transferred by merchants to the state in June.)

For the first six reporting months of 2013, each of the 1% sales taxes generated $9.879 million, down 1.33% compared to the same period of 2012, and 4.17% below the budget estimate.

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 June report is $1.253 million, down 4.03% compared to June 2012. The collection was down 6.37% compared to the revenue estimate.

For the first six months of 2013, the countywide tax has generated $7.678 million for Fort Smith, down 2.01% compared to 2012 and down 4.39% 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. The dip in collections has resulted in city officials seeking 4% budget cuts from all departments.

“We still think that will get us there,” Assistant City Administrator Jeff Dingman said Tuesday (July 23) when asked if the 4% cuts would be enough.

Dingman said city officials also rely on the “unspent portions” of the budget to respond to the decline in collections.

Statewide, June revenue from sales and use collections, typically a sign of consumer spending and confidence, reached $183.9 million, up 3.1% compared to June 2012, but below the state budget forecast by 0.9%. For the state’s fiscal year (July 2012-June 2013), sales and use tax collections totaled $2.124 billion, up just 1.1% compared to the 2012 period, and 1.4% below forecast.

PREVIOUS ANNUAL COLLECTION INFO
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

Lowell-based J.B. Hunt Transport Services Inc. on Tuesday (July 23) announced a quarterly cash dividend payable to its shareholders on August 16.

The company’s board of directors declared a cash payment of 15 cents per common share for stockholders of record on Aug. 2.

The firm’s largest individual shareholder is Johnelle Hunt, will receive more than $2.8 million from this quarterly dividend. She is widow of the corporate founder Johnnie Bryan Hunt Sr,, who died in 2007 at age 79.

According to federal filings Hunt’s estate still owns 18,785,085 shares of stock with a street value in excess of $1.4 billion. These shares are registered to J.B. Hunt LLC.

Roughly 22% of the company’s outstanding shares are held by insiders. About 73% of the company shares are owned by 342 institutional investors and mutual fund owners.

CEO John Roberts holds 239,837 shares with a street value in excess of $17.89 million.

Shares of J.B. Hunt Transport closed today at $74.60, down 28 cents. The company has a market capitalization of $8.73 billion.

Arvest Bank announces that Kim Peters recently accepted a position as a private banking officer in its Benton County division.

Peters previously worked at Arvest Bank in Springdale in 2004 and 2005 as a vice president and corporate services sales associate. Afterwards she worked for other banks in the region garnering experience in commercial lending and credit risk management. 

Prior to moving to Northwest Arkansas, she worked for the Federal Reserve Bank of St. Louis, Little Rock branch.

Peters will report to Robyn Breshears, regional private banking manager.

“Kim’s expertise and knowledge of Northwest Arkansas’ business and banking community will be a great benefit to our private banking customers,” said Breshears. “She is focused on providing the best of her experience to her customers’ advantage.”

Peters earned a bachelor’s degree in business administration from the University of Arkansas in Little Rock.

Within the community, Peters serves on the leadership council for Single Parent Scholarship Fund of NWA and on the Walton Arts Center’s “Art of Wine” committee.

The Schmieding Center of Bella Vista has a full slate of health screenings scheduled throughout the month of August.

There is no charge for the services offered at the health resource center at 1801 Forrest Hills Blvd. in Bella Vista.

Aug. 1 - Memory screening - 10 a.m. to noon.
Aug. 3 - CPR for caregivers - 9 a.m. to noon
Aug. 6 - Blood pressure check-up - 10 a.m. to noon
Aug. 13 - Blood pressure check-up - 9 a.m. to 11 a.m.
Aug. 15 - Hearing aid adjustments - 1 p.m. to 3 .p,m.
Aug. 21 - Blood pressure check-up - 9 a.m. to 11 a.m.
Aug. 28 - Elder law review for veterans and spouses - 9 a.m. to 11 a.m.

For more information call the Schmieding Center at (479) 876-2335.

Mitchell Communications said Wednesday (July 24) it is opening new offices in New York and Chicago to facilitate its expanding customer base.

The agency has experienced a 530% growth rate over the past five years, according to founder and CEO Elise Mitchell.

“We’re so proud of the opportunities we have to serve our clients – to help them grow their businesses, and connect and engage with their audiences in new and exciting ways,” Mitchell said. “This is what we see as the greatest potential for our future.”

Mitchell Communications Group was acquired last year by the Dentsu Network.

“As part of the Dentsu Network, Mitchell Communications Group can expand its reach and accelerate its growth, serving more clients in more places with their best-in-class approach. The New York and Chicago offices are two great steps forward,” said Tim Andree, president and CEO at Dentsu.

The opening of offices at 32 Avenue of the Americas in New York and at 515 N. State St. in Chicago establishes an on-the-ground presence and closer collaboration with partner agencies mcgarrybowen, 360i and others, as Dentsu builds out a full-service offering that now includes public relations.

To staff its new offices, Mitchell has made the following new hires.

• Sarah Larsen, a former senior vice president with Ogilvy Public Relations, will serve as general manager and senior vice president for the Chicago office.

• Tracy Shea, who has designed digital and social strategies for household brands such as Disney, General Mills, Hard Rock and Pfizer, is vice president of digital and social strategy for the firm. He is in the New York office.

• Dee Bhambhani, previously a senior account supervisor with Hill+Knowlton Strategies, has been named director in the New York office.

The agency will also continue to draw upon the broad expertise of its client service and shared service teams based in Northwest Arkansas, according to the release.

Mitchell’s client base includes Wal-Mart, Sam’s Club, Procter & Gamble, HIlton Hotels, Southwest Energy, Tyson Foods and J.B. Hunt.

The Fort Smith metro jobless rate for June is likely to be lower than the May 7.7% rate. That’s what the June Baloney Sandwich Index predicts.

May’s 7.7% jobless rate was well above the 7.2% in April, and higher than the 7.3% in May 2012, according to the U.S. Bureau of Labor Statistics (BLS). May was the 53rd consecutive month the Fort Smith metro jobless rate has been at or above 7%.

Unemployed persons in the region totaled an estimated 10,249 during May, above the 9,490 during April and the 9,725 during May 2012.

Ken Kupchick, author of the index and director of marketing and development for the River Valley Regional Food Bank, says the index has a 68.2% correlation with Sebastian County unemployment numbers. He uses three numbers to compute the BSI:
• The number of sack lunches served by the St. John’s Episcopal Church Sack Lunch program;
• The Sebastian County jobless rate; and,
• The Fort Smith metro jobless rate.

“The Baloney Sandwich Index has continued to show a strong correlation with county and metro unemployment. After predicting the uptick in unemployment for May, the June Index is predicting another leveling off,” Kupchick noted in his report.

The Index has moved from 125.4 in December to a low of 89.4 in February, rising steadily to 130.4 in May and settling back down to 126.4 in June. The Index at June 2012 stood at 175.2 before an August peak of 201.9.

Kupchick said the index decline in 2013 is primarily the result of a policy change at St. John's Sack Lunch program. Because of the long-term unemployment in the Fort Smith area, program volunteers were providing extra meals to those who requested them. The extra meals were included in the index count.

“However, the cost of providing the added meals was such that the program adopted a new policy as of January 2013. Starting this year, in response to a request for additional food, volunteers provided a extra sandwich rather than an entire lunch. The added sandwich is kept out of the total lunch count,” Kupchick explained.

The program began in 1986 by the church, located in downtown Fort Smith, to help the homeless. The handful of volunteers that began the program has grown to an estimated 125 volunteers who support the effort.
 
Kupchick provided the following notes on the index track.
• The drop forecasted the ease in the unemployment rate from from a high of 8.4% at the county level in January to a low of 6.8% in May and from a high of 8.7% at the metro level in January to a low of 7.2% in May.

• As the Index kicked back up in May, so did the unemployment rate to 7.3% and 7.7% at the county and metro levels, respectively.

• The slight downturn in the June Index suggests another softening in the unemployment rate.
 
• In looking at the June history, the number of monthly lunches distributed by the program continue to exceed the levels offered in '09 and '10 at the beginning of the recession's sting.

June jobless numbers for Arkansas’ metro area will be available on July 30. While the jobless rate is not now available, the preliminary BLS report shows that non-farm employment for June is 120,200, up compared to the 119,200 in May, and more than the 117,000 in June 2012. If the number holds, it will be the first time since December 2008 that non-farm employment in the Fort Smith area topped 120,000.

Arkansas’ June jobless rate was 7.3%, unchanged from May and unchanged from June 2012. Although the jobless rate remained the same compared to June 2012, the size of Arkansas’ labor force fell 1.67%, and the number of employed fell by an estimated 20,949, or down 1.66%.

Walmart Labs continues to expand in San Bruno, Calif., and confirmed with The City Wire on Wednesday (July 24) the acquisition of Torbit, a company that will help increase the speeds across all of its e-commerce platforms.

Ravi Jariwala, a spokesman for Walmart Labs, said Torbit is a front-end optimization platform that will help the retailer provide faster and smoother search processes regardless of whether the shopper is browsing from a mobile phone, tablet or computer.

The terms of the deal were not disclosed, but Jariwala said four technology professionals with Torbit are joining the Walmart Labs team.

“We also continue to search for other technology engineers and have more than 100 jobs open at this time,” he said.

Torbit co-founder Jon Fox noted in a blog on Wednesday, “We’ll be using our cutting edge (Dynamic Content Optimization) technology to enhance the performance and shopping experience for all of Walmart.com’s many online shoppers. We’re exited to help make the Walmart online experience even better by optimizing for your device and improving the performance of all of their existing and future sites.”

Torbit joins a short list of other recent acquisitions by Walmart Labs including: Inkiru, OneOps and Tasty Labs, which are all part Wal-Mart’s efforts to operate in simultaneous retail channels.

The financials are improving but the losses continue at Van Buren-based USA Truck, with the trucking company reporting Wednesday (July 24) a first half 2013 loss of $3.5 million, better than the $8.4 million for the same period of 2012.

A second quarter loss of $1 million was booked, but was an improvement over a $3.5 million loss during the second quarter of 2012. The per share loss of 10 cents, however, missed the consensus analyst estimate of a 6 cent per share loss.

Total revenue for the first six months of 2013 reached $271.766 million, up 7.3% compared to the 2012 period. Second quarter total revenue was $139.738 million, up 7.84% over the second quarter of 2012.

“We reduced our net loss by 70.0%, marking our second consecutive quarter of material year-over-year improvement in operating results,” USA Truck CEO John Simone noted in the earnings statement. “We believe our turnaround plan gained traction during the June quarter, extending the year-over-year improvements in base revenue, operating income and net loss we achieved during the March quarter. While we are encouraged by our progress, we are not satisfied and have not yet achieved our top priorities of returning to profitability and restoring shareholder value.”

Simone was named CEO in February, and replaced Cliff Beckham, who was moved to the post of chief financial officer. Simone has more than 30 years of operational and management experience in the transportation industry with leading companies that include UPS, Ryder, and Greatwide Logistics. He was the CEO of LinkAmerica where he led a successful operational turnaround.

COST REDUCTIONS
An area of improvement cited by Simone in the report was in reducing operating costs in the truck segment. According to USA Truck, trucking revenue was up 13.3% in the quarter, with costs up only 8.2%.

“Despite those cost improvements, we believe substantial opportunity remains to realize more earnings leverage in our Trucking model in the areas of asset productivity, equipment maintenance, insurance and claims, fuel economy and driver retention,” noted the USA Truck report. “Internal efforts to improve those costs are at various stages of implementation, and we are taking measures that we anticipate will accelerate the pace of progress.”

The average number of in-service tractors during the quarter was 2,241, up from 2,171 during the 2012 quarter. Base revenue per loaded mile was only slightly improved from $1.627 in the 2012 quarter to $1.629 in the 2013 quarter.

In its logistics and brokerage business, the company reported second quarter operating income of $2.7 million, up from $2 million in the 2012 quarter. The increase came with a 5.2% drop in segment revenue.

FINANCIAL HISTORY
Significant financial gains will be required in the second half of 2013 if the company is to avoid five consecutive years of losses. The company reported a $17.54 million loss for 2012, a 2011 net income loss of $10.77 million, a 2010 loss of $3.308 million, and a $7.177 million loss in 2009.

Many transportation industry analysts are not optimistic about improved conditions for trucking companies in the second half of 2013. Tepid freight demand, driver shortages, increased costs from a change in federal hours-of-service rules and an inability to seek higher shipping rates are cited as some of the factors that could limit trucking company earnings.

“Projections are that the driver shortage could climb to 100,000 by year end, pushing up wages and benefits to attract and retain drivers. Given that we are already at or close to a one hundred percent turnover rate for drivers, these labor costs could rise quickly as qualified drivers jump companies in search of better pay,” said Rosalyn Wilson, a supply chain expert and senior business analyst with Vienna, Va.-based Delcan Corp., who provides economic analysis for the Cass Freight Index.

Simone said efforts to improve “miles per seated tractor” and “several internal initiatives” helped USA Truck reduce driver turnover by 31.2%.

The thinly-traded shares of USA Truck (NASDAQ: USAK) closed Wednesday at $5.83, down 46 cents. During the past 52 weeks the share price has ranged from a $6.98 high to a $2.65 low.

Shelby Woods and Wayne Woods of Little Rock-based advertising/PR giant CJRW have been selected by the Tenth District of the American Advertising Federation (AAF) for the Southwest Advertising Hall of Fame’s 2013 class of inductees.

The Woods brothers of Cranford Johnson Robinson Woods (CJRW) – a full service advertising, marketing and public relations agency – will be two of the seven honorees in the hall’s class. The Tenth District of the AAF covers Arkansas, Louisiana, Oklahoma and Texas.

Shelby and Wayne Woods cut their teeth with their small agency, The Woods Brothers Agency, which was founded in 1967. One of the firm’s earliest clients was the Arkansas Parks and Tourism Department, which the brothers helped grow through research and successful advertising and marketing campaigns. In part, their efforts helped Arkansas tourism emerge into a nearly $6 billion industry.

In 1990, The Woods Brothers Agency merged with then Cranford Johnson Robinson and Associates to become Cranford Johnson Robinson Woods (CJRW). Today, Wayne Woods serves as chairman and CEO of CJRW and Shelby Woods serves as Chairman Emeritus of the board of directors.

“On behalf of CJRW I can say we are all very proud of our colleagues Shelby and Wayne,” said Wayne Cranford, founder of CJRW and member of the 2008 inaugural class of the Southwest Advertising Hall of Fame.  “Their contribution to the overall advertising profession has been profound and while Shelby and Wayne would never say so, Arkansans owe these gentlemen a debt of gratitude for their tenacity and tireless passion that helped create the booming Arkansas tourism industry.”

“This is a great honor for me and my brother,” said Shelby Woods. “When we started this business in 1967 with the idea to showcase Arkansas and all of her beauty and opportunity we had no idea the tourism industry would be what it is today. We owe our success to the hundreds of talented professionals who we have worked with over our careers. We are very blessed.”

The Woods brothers will officially be inducted into the Southwest Advertising Hall of Fame on Monday, October 21 at 11:30 a.m. in Dallas at the Brookhaven Country Club.

Home sales across Northwest Arkansas and much of the country are being fueled in part by all-cash deals, short sales and institutional investors.

A new report from RealtyTrac revealed more than half of the home sales recorded during June in Benton County were for non-traditional buyers. Roughly 12% were institutional investors, one-in-three were all cash deals and 21% of the buyers purchased short sales. Short sales are residential properties where the sale price is below the combined total of outstanding mortgages secured by the property.

This is not a new dynamic in Benton County because a year ago investors made up 9% of sales and one-in-four were all cash, but there were no short sales according to the RealtyTrac report.

In Washington County, more than three-quarters of the sales last month were to institutional investors, all-cash deals or short sale transactions, according to the report.

The investor presence rose to 29% in June, up from 5% in the year-ago period. All-cash deals comprised 43% of the total sales in the county in June. This number doubled from a year ago.

Short sales were 5% of the Washington County market, compared to zero in June of last year.

Real estate analysts have said the entire market across the U.S. has been fueled with investors, which is not as healthy for the recovering economy as consumers purchasing homes for themselves.

But this added demand is helping to drive up home prices, which is good for overall consumer confidence.

The RealtyTrac report confirms the buyer demand is there, but it’s not what typically comes to mind when you think of home sales.

The Northwest Arkansas market has experienced an 8% jump in median home prices this year and agents point to stronger buyer demand and lower inventory levels for that recovery.

Daren Blomquist, vice president with RealtyTrac, said a flurry of institutional investors and cash buyers flocked into the single family market about a year ago, pushing up prices and picking clean the best inventory available in many areas.

He said this is not normal nor sustainable recovery, but the local markets across the country have been working through this changing dynamic.

“Rising home values should continue to unlock more non-distressed inventory while also pricing institutional investors out of more markets, which, combined with rising interest rates, will cool off the pace of price appreciation,” Blomquist said.

In markets like Arkansas where lingering distressed inventory is working its way back to listing, institutional investors and cash buyers are still lurking.

Jim Long, an agent with Crye-Leike Realty in Bentonville, said he has sold several cash deals this year. Most were low priced homes that didn’t qualify for traditional mortgages.

He said the buyers often renovate the home and live it themselves. Though Long has not personally sold many homes to investors, he said they are in the local market scrapping for bargains, which are getting harder to find.

Bank-owned sales represented 10% of the transactions in the two local counties during June, this is up 5% a year ago.

Long said bank-owned properties in good condition move very quickly.

A foreclosure in Bella Vista that has been vacant for three years went on the market July 18. The property went under contract the following day.

The individual buyer said he had been looking for a single family home for several months, “I knew I had to move quickly because I had already missed out on a couple of other properties.”

Home sales across Northwest Arkansas and much of the country are being fueled in part by all-cash deals, short sales and institutional investors, but the Fort Smith metro area is bucking that trend.

A new report from RealtyTrac revealed 30% of the home sales in June across the U.S. were all-cash. That was fairly consistent with the year-ago period.

Statewide, cash deals were 29% of the real estate transactions in June. up from 24% a year ago.

Locally cash deals represented 16% of homes sales in Sebastian County and 18% of the residential purchases in Crawford County during the month of June.

In both areas, cash transactions were down from a year ago - from 29% and 32%, respectively.

According to RealtyTrac, institutional investors make up a small part of the Fort Smith metro area with 1% of sales in Sebastian County and 5% in Crawford County. These levels were comparable to investor activity a year ago.

Real estate analysts have said markets where investors and cash transactions have been heavy, home prices have risen.

RealtyTrac indicated the Fort Smith metro area has not seen a rise a home in prices, like the majority of the nation.

Without the investor activity helping to drive up demand, local median home prices declined 10% in June, according to RealtyTrac data.

The median home sales price in Sebastian County in June was $111,000, down from $123,500, a year ago. Median sales prices slid 5% in Crawford County to $112,000, according to the report.

Other areas in the state that have seen heavier investor traffic and higher home sales include Benton and Washington Counties. The Northwest Arkansas market has experienced an 8% jump in median home prices this year and investors make up roughly 25% of sales in the two counties north of the Bobby Hopper Tunnel.

Daren Blomquist, vice president with RealtyTrac, said a flurry of institutional investors and cash buyers flocked into the single family market about a year ago, pushing up prices and picking clean the best inventory available in many areas across the country.

He said this is not normal nor sustainable recovery, but those local markets have been working through this changing dynamic.

“Rising home values should continue to unlock more non-distressed inventory while also pricing institutional investors out of more markets, which, combined with rising interest rates, will cool off the pace of price appreciation,” Blomquist said.

In markets like Arkansas where lingering distressed inventory is working its way back to listing, institutional investors and cash buyers are still lurking. However, the Fort Smith metro area showed no distressed sales during the month of June, according to RealtyTrac.

Diana Olick, a real estate analyst with CNBC, said investors are chasing distressed properties, when you find one, you will also find the other.

The Fort Smith metro area has had neither present to help create more buyer demand in that market this year.

The Board of Directors at Fort Smith-based Arkansas Best Corp. have declared a quarterly cash dividend of 3 cents per share to be paid Aug. 22 to shareholders of record on Aug. 8.

Arkansas Best is a transportation holding company, and it’s largest subsidiary is less-than-truckload carrier ABF Freight System.

Arkansas Best is scheduled to announce second quarter earnings on Aug. 9. The company reported a first quarter loss of $13.4 million. The consensus of the 17 analysts who follow the company is that per share income will be 20 cents, with topline revenue estimated to reach $571.94 million.

Arkansas Best shares (NASDAQ: ABFS) closed Wednesday at $21.32. During the past 52 weeks the share price has ranged from a $24 high to a $6.43 low.

While business leaders and educators have embarked on an effort to understand and solve a broadband shortage in the state’s public schools, lawmakers will have a final say on signing off on a plan.

Earlier this month, Gov. Mike Beebe (D) convened two working groups – Fast Access for Students, Teachers and Economic Results (FASTER) and the Quality Digital Learning Study (QDLS) committee – to find ways to boost broadband access to nearly 460,000 Arkansas K-12 students.

According to the Arkansas Department of Information Services (DIS), only a handful of the state’s public schools may have a nationally recommended broadband capability of 100 Mbps per 1,000 students and staff. The average Arkansas school district with 1,800 students currently has 40 Mbps of bandwidth and needs at least 140 Mbps more, the department concluded. Business leaders with leading Internet Service Providers (ISPs) contend the situation is not nearly as negative as the DIS report projected.

Without the necessary bandwidth, Arkansas public schools could be in jeopardy of failing to meet forthcoming Common Core testing standards and perhaps, more importantly, students and teachers could miss out on new digital academic opportunities that are redefining the education delivery system.

THE TIMES ARE A-CHANGIN’
Dr. Ed Franklin, executive director of the Arkansas Association of Two-year Colleges and chairman of the QDLS group, says a revolution in education is clearly underway due to technological advancements.

K-12 students are the pipeline for two-year and four-year colleges in the state and Franklin is keenly aware that those graduates must have the skill sets to be employable eventually.

“How do we provide the tools to the schools for the students so that we can provide that workforce of the future?” he asks. “It used to be that the teacher and the textbook were the possessor of all knowledge. You sat there in the classroom and read your textbook and listened to your teacher and that was your knowledge. It’s not the case today.”

While traditional classes remain, students at all levels are now taking online courses or participate in distance learning. Arkansas lawmakers passed an act last session requiring every public school district and public charter school in Arkansas to create a pilot program of at least one digital learning course for students to take.

In higher education circles, MOOC’s (Massive Open Online Courses) are an increasingly popular concept that provide large-scale interactive participation from students and teachers at different locations around the world via the web. As it develops, the concept could easily become experimental in K-12 levels.

Many of these growing and diverse online offerings require scores of videos per course and educators predict that whole degrees may someday be obtained without ever cracking a textbook.

“The whole discussion about how we teach is changing, but it’s all based around having that broadband access,” Franklin says.

As chairman of the QDLS committee, Franklin said he’s focused on addressing the first task at hand: identifying the broadband data capabilities throughout the state.

“The first thing we have to do is find data that we can all agree is good data,” he says.

KEY OBSERVATIONS

Sen. Johnny Key, R-Mountain Home, chairman of the Senate Education Committee and Vice-chairman of the Joint Budget Committee, also sits on the QDLS committee. He agrees with a sentiment shared by Franklin and many Internet providers that say a more complete assessment of available broadband access is the first step in finding a solution.

“I think that’s the biggest challenge and one of the first goals we have to meet. We have to determine what is out there,” Key said. “Providers tell me that they have facilities, they have everything built out in most areas of the state to provide what is needed. The districts, on the other hand, tell us that we don’t have what we need and it’s not just for Common Core, it’s for other education delivery, different distance learning opportunities. This is completely my opinion and observation, but I think it’s a communication problem. I’m not sure the [school] districts’ IT folks and the providers are speaking the same language and vice-versa.”

Key’s eyes were opened to the problem when he filed a bill in the 2013 regular session to provide a partial solution to the broadband access issue. He sought to give K-12 schools permission to tie into the state’s ARE-ON system, which is an ultra high-speed fiber optic network connecting four-year and two-year colleges and universities as well as UAMS and a plethora of health care touchpoints throughout the state and nation.

The primary purpose of ARE-ON (Arkansas Research and Education Optical Network) is for collaborative higher education research and telemedicine.

“When I filed that bill to open ARE-ON up to K-12, I found that providers and educators had never really sat down in a room together and had a discussion,” Key said.

He wants to be careful now in tapping into ARE-ON to solve the K-12 bandwidth dilemma. Key said he wants to avoid having a public entity provide a service that private enterprise is capable of offering in a cost-effective manner.

Beebe has indicated he’s willing to push for a change to state law that currently prohibits a government entity from providing “directly or indirectly” broadband service in competition with the private sector as it relates to ARE-ON.

“There are current restrictions, statutorily – which I understand and I know where it came from,” Beebe said. “So I’m giving the private sector the opportunity to step up and do right and help us solve these problems and invest and that’s the first option. There’s always the option that those restrictions could be removed, you know.”

COMMON CORE

Rep. James McLean, D-Batesville, is chairman of the House Education Committee and is a member of the Joint Budget Committee. Also a member of the QDLS group, McLean thinks the working groups will fashion a reasonable solution to the problem in advance of 2014′s fiscal legislative session. That meeting of the General Assembly will give lawmakers a chance to address funding challenges of the broadband equation as well as potentially address any policy changes that could be required.

“From what I’m gathering, I feel like there’s going to be something coming down the pike in the next several months that we’ll be able to take to the fiscal session,” he said. “I think it will be equitable and fair and is going to be able to address the broadband issue and the Common Core issue in these rural districts that just have no broadband capacity.”

McLean is a solid supporter of the controversial Common Core initiative, which will begin testing in Arkansas public schools in 2014. The testing is believed to require the expanded bandwidth that DIS says is lacking, but Internet service providers say can largely be provided.

“Over time, I think we’ll look back 10 or 15 years from now and look at Common Core and look at the introduction of technology that comes with Common Core and I think it will have a very positive unintended consequence – the introduction of broadband and digital capabilities to very, very small rural schools and everything that comes with that in terms of content and instructional material. .. There’s just a big upside to it,” McLean says.

THE PRICE TAG & POLITICAL WILL
A big question mark in the broadband discussion that is unlikely to be settled for months is the price tag for the improvements.

Schools will have to pony up. ISPs will have to make additional investments. The state of Arkansas will most certainly be asked to contribute with one-time and ongoing money.
Early estimates peg the costs at anywhere from $17 million to $765 million to public and private entities; however, there is universal consensus that until the assessment of the broadband availability comes back, a price tag is merely speculative.

For McLean, the funding debate comes back to equity and fairness.

“You don’t want wealthy districts in one part of the state that have incredible access to digital technologies and then you have small school districts in rural areas that do not,” he contends.

“In my opinion, there will have to be some subsidy in these areas of the state where there is just no access and it’s not profitable to go in there and provide access. That’s why they’re not there in the first place,” McLean added.

Franklin explains that he is truly in “blank slate” mode. No preconceived plan exists, he insists. It may take a public-private partnership, it may take a statewide plan with regional sub-plans, he says.

While some communities – large and small – may already have infrastructure that just needs to be activated, others will require new investments, he predicts. The lay of the land may literally dictate what type of technology is most cost-effective for providing more bandwidth.

“What happens with connectivity, for example, in the Delta where you could do point-to-point fixed wireless, you couldn’t do that in the Ozarks. We have to be creative with this,” Franklin suggests.

Key argues that legislators won’t sign off on any price tag without a well-developed plan for meeting the goals of expanded bandwidth in public schools. He wants to make sure that the schools’ needs are identified properly with what’s available from broadband providers.

“Inertia in government is a tough thing to overcome. Right now, everyone is saying, ‘Yes, we’re willing to work together to get this done.’ I believe they are. I just don’t know what hurdles we’re gong to encounter. Until we know that, the timing of the funding is really hard to measure,” Key said.

“We know that it’s going to cost money,” he added. “Whether that is new funding or a re-prioritization of technology funding already in place through the matrix, through other sources, that’s a conversation we’ll have to have.”

Wal-Mart sells a lot of groceries but it’s not the most popular grocery destination in the U.S., despite its more than 4,000 stores, low prices and convenient locations, according to a recent study by Market Force.

Trader Joe’s, Whole Foods, Publix and Aldi were preferred grocer destinations, according to the May study which asked consumers to rate their satisfaction and the most recent store experience. The Delight Index measures the survey results using overall shopper satisfaction and a consumer’s willingness to recommend a store to friends and family. 

Trader Joe’s Market, which operates 400 stores across the U.S., received the highest marks among those surveyed, with a 90% approval. Whole Foods Market, Publix and Aldi also scored high in the 80% range. Wal-Mart scored the lowest ranking among those surveyed at roughly 35%, while Sam’s Club fared better at 65%.

Analysts have said Wal-Mart is not seen as  a “cool” company by mainstream consumers, like a Whole Foods or Trader Joe’s, but Wal-Mart does draw more than 138 million customers to its U.S. stores each week.

Other research indicates 69% of those familiar with Wal-Mart have a favorable opinion.

Not all grocers mentioned in this survey are located throughout the U.S. so the study broke down the results by region.

Market Force asked consumers where they had spent the majority of their grocery money in the previous 30 days. Across the South, Kroger ranked first with 16%, followed closely by Publix with 15% and H-E-B in a distant third with 5%. In the Midwest, Kroger again led the pack 11%. Meijer ranked second with 9% and Hy-Vee took the third spot with 8%.

In the West region, Safeway led by a wide margin with 12%, Kroger earned 9% and Costco received 7%. Respondents in the Northwest region preferred Stop & Shop which garnered 11% of the votes, GIANT came in second with 6% and Wegmans and Market Basket tied for third with 5%.

Again, Wal-Mart did not make the top three in any of regions, according to the survey.

KEY ATTRIBUTES
The survey allowed respondents to rank grocers on several key attributes, the top five metrics are show below with the retailer rankings. 

Wal-Mart wasn’t listed in the top 5 for convenient locations, and ranked third in low prices behind Aldi and Winco Foods. Wal-Mart did rank highest in one-stop shopping metric, tying with Target at 67%.

“With most consumers satisfied with their grocery-shopping experiences, it makes for a very competitive playing field for grocers looking to distinguish themselves from the masses,” said Janet Eden-Harris, chief marketing officer for Market Force. “We start to see the greatest opportunities for differentiation in operations-related attributes such as fast check-outs, gracious staff and atmosphere.”   

Market Force notes that competitive differentiation begins to emerge when viewing operational excellence attributes. In these areas, the survey found that higher-satisfaction brands tend to outscore other grocery brands. 
 
Trader Joe’s and Publix performed well in the operational excellence attributes, with Trader Joe’s ranking first for its atmosphere and quick checkout process, and second in the other three categories.

Publix was tops among shoppers for its cleanliness and courteous staff, and second to Trader Joe’s in atmosphere. Hy-Vee and H-E-B also fared consistently well in key categories.

Wal-Mart was not among the top five retailers in any of these operational metrics, according to the survey. The Bentonville-based retailer continues to work on store efficiencies from in-stock concerns to speedier check-outs with the Scan & Go mobile application that allows shopper to not only reduce their wait time inline but also budget their shopping trip as they shop.

PRODUCT QUALITY
In the product quality metric of the survey, Whole Foods took the top spot in meat, produce and organic options. The popular retailer also led the pack in nutritional information and in its sustainable/ green practices.

Wal-Mart was not among the top five grocers in any of those metrics, though the retailer has addressed it’s steak quality, fresh produce and healthier food options with the “Good For You” labeling initiative. The retailer is also working toward a greener footprint, but those efforts don’t seem to have swayed grocery shoppers in the recent survey.

Sam’s Club did make the top five grocers for high meat quality, ranking three spots behind Costco, who also cracked the top five for high quality produce.

Publix was the only other grocer beside Whole Foods make the top 5 list in the product quality, health and sustainability metrics of the survey.

Wal-Mart competes head-to-head with many of the grocers in the survey and continues to report it is gaining grocery market share particularly with its Neighborhood Market expansion efforts.

The survey perception is that there are also plenty of other grocers holding their own.

Elasticsearch, an open-source search and analytics software firm, and StackSearch Inc., announced a partnership to jointly promote and expand the adoption of Elasticsearch within the growing international community of developers with big data search problems.


“The partnership enables us to further empower our customers and developers to get the most out of their Elasticsearch deployments by offering dedicated instances, professional support, and professional services. We are honored to partner with this forward-thinking company, and we look forward to supporting and promoting Elasticsearch adoption to our customers around the world,” StackSearch CEO Mark Brandon.


Global production of data is exploding, and the necessity for retrieving, storing, analyzing, and making searchable all types of structured and unstructured data is promoting the need for fast, filterable, and facetable search to mission critical status for all enterprises.


Together these two firms will provide various industries with the tools they need to overcome big data challenges.


Steven Schuurman, CEO of Elasticsearch said, “By providing a hosted solution, StackSearch is lowering the barrier to entry for Elasticsearch with a professionally managed, hassle-free solution.  We look forward to supporting their success as they accelerate the adoption of Elasticsearch."
 

As business and political leaders in Arkansas begin work on how to improve broadband access to public schools in the state, one of the leading cable and Internet providers in the state is rolling out a program to reach low-income K-12 students.

Cox Communications announced Thursday (July 25) a partnership with Connect2Compete designed to increase Internet access and provide low-cost computers to families who qualify for the federal free- and reduced-lunch program. Connect2Compete is a not-for-profit initiative that works nationwide to provide “affordable high-speed Internet, low-cost computers and free digital literacy training to families nationwide.”

Eligible families may obtain Cox high speed Internet for a deeply discounted price of $9.95 a month for two years, along with a free cable modem rental, free installation, and no deposit or contract.

“Cox has a long history of supporting broadband adoption programs across the country, and doing so in a way that connects the most vulnerable members of our society – our children – so they can compete and have a greater chance of success in the digital world that awaits them,” Kim Rowell, Cox Arkansas market leader and vice president of field services, said in a statement.

The Cox eligibility requirements include:
• Families have at least one child receiving free lunch through the national school lunch program;
• Must live in a Cox service area;
• Have not subscribed to Cox Internet service in the past 90 days;
• Do not have any outstanding past due payments to Cox.

Kelly Zega, a spokeswoman for Cox, said the normal charge for basic Internet speed is $34.99 for an introductory offer, then up to $42.99 after several months. Based on those fees, a qualifying family would receive an almost 77% discount on an Internet access charge.

The primary Arkansas markets for Cox are the Northwest Arkansas and Fort Smith metro areas and the Harrison-Berryville area in north central Arkansas. Zega said in the school districts in those markets there are an estimated 48,294 children who qualify for free or reduced lunches. Because there may be several qualifying children per household, he number of eligible households will likely be fewer, Zega explained.

“But even if a portion of those children can gain access through what we are offering, that could be a game changer,” Zega said. “And I’d like to add that it doesn’t just help them (children). This is equally critical for the parents so they can have that access ... to monitor their (child’s) progress at school.”

The “game changer” element is what Arkansas Gov. Mike Beebe has recently asked education and business leaders to address with respect to improved Internet access at Arkansas’ public schools.

Earlier this month, Beebe convened two working groups – Fast Access for Students, Teachers and Economic Results (FASTER) and the Quality Digital Learning Study (QDLS) committee – to find ways to boost broadband access to nearly 460,000 Arkansas K-12 students.

According to the Arkansas Department of Information Services (DIS), only a handful of the state’s public schools may have a nationally recommended broadband capability of 100 Mbps per 1,000 students and staff. The average Arkansas school district with 1,800 students currently has 40 Mbps of bandwidth and needs at least 140 Mbps more, the department concluded. Business leaders with leading Internet Service Providers (ISPs) contend the situation is not nearly as negative as the DIS report projected.

Without the necessary bandwidth, Arkansas public schools could be in jeopardy of failing to meet forthcoming Common Core testing standards and perhaps, more importantly, students and teachers could miss out on new digital academic opportunities that are redefining the education delivery system.

Zega told The City Wire that the Connect2Compete partnership announcement was not driven by Beebe’s push, but could help in the effort.

“It is an interesting coincidence, but this has been a program that has been in the works for a long while,” Zega said. “We are happy that a solution is coming into play at the same time a bright light is now on this issue in Arkansas.”

Zega also said some school administrators are pleased with the plan because it may encourage participation among qualifying families who have chosen to not sign up for the free or reduced school lunches. For parents who may simply be too embarrassed to sign up, the possibility of inexpensive Internet access may overcome that anxiety, Zega said.

“If that encourages them to sign up, and they get that (Internet) access to their home, then that helps those kids and it also helps the school,” Zega said.

A Pilgrim’s Pride processing plant in DeQueen, Ark., was cited for 11 safety violations by the U.S. Department of Labor's Occupational Safety and Health Administration.

The poultry processing plant was found to have exposed workers to hazardous chemicals and faces proposed penalties of $170,000, according to an OSHA press release. 

The violations were revealed in a January inspection conducted by federal agents. At that time, the company received a citation for failing to document that an emergency shutdown system was activated by an ammonia leak. That violation carries a $70,000 fine, according to the release.

The company also received citations for nine serious violations for deficiencies of relief valves and failing to provide process hazard analysis, operating procedures, testing procedures and management of change procedures. Fines for the serious violations totaled $61,500.

The repeat violation, which carries a $38,000 fine, was cited for failing to ensure the adequate frequency of self-inspections and tests of ammonia refrigeration equipment and vessels.

Pilgrim's Pride, which is based in Greeley, Colo., is a subsidiary of the Brazilian meat giant JBS SA and a major competitor of Tyson Foods Inc.

The roar of bulldozers and construction equipment has become a common occurrence at Chaffee Crossing during the last several years and according to Ivy Owen, executive director of the Fort Chaffee Redevelopment Authority, citizens have not seen anything yet.

"When I got here in 2007, the only thing that was here was a road bed," he said of the area, which includes what will become Interstate 49. "The prospects of (I-49) getting build then wasn't very good. The funds weren't there.”

But with the expected completion of the highway by the middle of next year and the announcement of several new projects, Owen said the future is bright for the development to the east of Fort Smith, with the sound of construction equipment not being a nuisance, but instead being a sign of progress.

"People are going to start seeing a lot of businesses coming out of the ground. We've sold a lot of property in the last two or three years," he said. "Now that people are going to see the interstate done, buildings are going to start coming up. We've had a lot of announcements of groundbreaking."

Among the large projects to be announced, started or completed so far this year are the following:
• Atlanta-based Phoenix Metals Company announced plans to invest $12 million in a new 65,000-square-foot metal processing operation at Chaffee Crossing that could employ up to 40 with an average wage of $15 per hour on March 31;

• The Arkansas Highway and Transportation Department moved their District 4 headquarters from a location on Towson Avenue in Fort Smith to a larger, brand new facility at Chaffee Crossing;

• Plans for a new 70-store shopping center at the intersection of I-49 and Arkansas Highways 22 and 59 was announced on July 2, which could bring hundreds of jobs to the area;

• Construction has begun on a new 500-unit apartment complex near the intersection of Massard Road and Chad Colley Boulevard. The complex will be known as The Reserve at Chaffee Crossing; and

• Umarex and Walther Arms, Inc., announced they would share a campus in Fort Smith, housing the expansion of Umarex operations and North American headquarters for Walther, makers of the iconic James Bond pistol.

"Things are going in a great direction," Owen said.

And while the anticipated completion of the stretch of interstate is expected to make a big impact on development in the area, he also pointed to easing of lending policies at not just large, national banks, but also smaller local banks.

"The economy is up, the trend is there, banks are loaning money. Two years ago, you couldn't beg a dime out of a bank. Now local banks are loaning money. Developers are loaning for these (commercial, industrial and housing) developments."

As the area continues to grow, with several housing developments underway in addition to the Reserve at Chaffee Crossing, Owen said the demand for schools will go up, as well, with both Fort Smith Public Schools and Greenwood Public Schools seeing an increase in student enrollment.

With the vast majority of development taking place within the Fort Smith district, Owen said it was only a matter of time before the district would start looking at the placement of a third high school, likely at Chaffee Crossing.

But according to Zena Featherston, director of communications and community partnerships at Fort Smith Public Schools, a new high school at Chaffee is far from certain.

"There is still a lot of work to be done to determine without a doubt that there will be a new high school at Chaffee Crossing," she said. "It is going to require the continued efforts of the school board as they explore the possibilities of a new facility and it is going to take effort to establish the appropriate schematics that we have to have so we can apply for partnership money. Until we know whether or not or how much partnership money we will be eligible for from the state, we have to wait on those things to happen before we can approach the possibility (of a new high school) 100%."

In Featherston's estimation, a groundbreaking is not likely for another three to five years.

"We are hopeful that in fact we will be able to do that in the next few years and we are moving toward that goal, but it's not 100%. There are a lot of factors that have to work in favor of that development."

Even if a new high school is not a certainty, Owen said other possibilities are.

"The land swap with the military is still going forward. We signed the (contract) with the Corps of Engineers and the National Guard for two parcels - 200 acres we're giving to the military and we're getting 520 in return on the south side of Custer Road. To me, it's great for both parties."

The property given to the military, Owen said, would likely be used for base housing while the property given to the FCRA would be available for industrial development.

"To us, 522 acres can easily be used for industrial. It's right across from our industrial properties. That would be our first choice. They predict, the Corps predicts, (completion of the land swap) in a year to 18 months. I think it will be sooner than that."

But the biggest, most watched project of them all is still the I-49 project, which was halted following a lawsuit from a property owner who said the general contractor on the project had trespassed on his property.

District 4 Engineer Chad Adams of the AHTD said he was unable to comment on the lawsuit, which was settled yesterday for undisclosed terms.

"We have a contract with that contractor (APAC Tennessee) who had some sort of agreement with the property owner to get material off of (his land)."

With the lawsuit settled, work that has been halted for months will finally begin again, though Adams timeline for completion of the highway differs from Owen's estimate of mid-2014.

"Yes, I'd say the middle to late part of 2014," Adams said. "It's a working-day contract, which means we charge time when conditions are conducive to construction. Usually rain is what impacts the schedule."

He said since construction was halted for a number of months, the contractor would be charged for the delays.

"We still expect the contractor to provide the services we contracted them for."