Graduate NWA will conduct two financial aid workshops as the program continues to reach out to adults interested in returning to school to complete their education.

The workshops will be from 2 to 4 p.m. on Sunday, April 27, in Burns Hall at NorthWest Arkansas Community College campus in Bentonville and in the Baldor Technology Center at the University of Arkansas at Fort Smith.

“This workshop is a great opportunity for adults to learn about financial aid and receive help applying for it,” said Penny Pendleton, UAFS dean for students services. “While high schools provide counseling and guidance to their students planning to go to college, there are fewer resources for adults wanting to attend college for the first time or who are returning to school to complete their degree. UAFS and the other Graduate NWA partners want to help adults return to school and complete their education. It is truly in the best interest of the student, their families, and our community to help these adults achieve their degree.”

Volunteers at the workshops will help attendees fill out the Free Application for Federal Student Aid (FAFSA) and answer individual questions about how to pay for a college degree.

Three financial aid workshops were held April 2 on the University of Arkansas campus in Fayetteville, at Northwest Technical Institute in Springdale, and on the Rogers campus of John Brown University.

People who attend one of this month’s five financial aid workshops can enter a drawing to receive one of the 10, $500 in tuition reimbursement scholarships being given away by Graduate NWA. A similar tuition reimbursement program that was part of last fall’s Come Back to College Fair has helped 10 students who enrolled this semester at Northwest Arkansas colleges. Another 10 scholarships given away at that event are expected to be disbursed in the fall. 

The U.S. Census Bureau estimates that more than 70,000 people living in Benton, Sebastian and Washington counties have some college credit but no college degree, and the workshops will target those individuals, said Stacey Sturner, the Graduate NWA program manager for the Northwest Arkansas Council.

Doug Oliver has been named senior executive director of Clarity Pointe Fayetteville.

Clarity Pointe Fayetteville is the first free-standing assisted living community in Northwest Arkansas focused entirely on the care and treatment of Alzheimer’s disease and other forms of dementia.

Oliver comes to Clarity Pointe Fayetteville from Clarity Pointe Knoxville, where he served as executive director during the community’s construction and startup phases. Previously, he was associate executive director and chief operating officer at Galloway Ridge at Fearrington, a senior living community in Pittsboro, N.C.

He has held a variety of senior level positions including director of Nursing Service, nursing home administrator and chief operating officer for standalone skilled nursing, assisted living and continuing care retirement communities.

“We are extremely pleased to have Doug Oliver join Clarity Pointe Fayetteville,” Pat Spence, vice president, director of Operations Management for Life Care Services, said in a statement. “As we introduce the first free-standing memory care community to Northwest Arkansas, his experience in geriatric nursing, combined with his expertise and compassion in caring for this special population will be invaluable.”

Clarity Pointe Fayetteville is a specialized and planned community with three neighborhoods supporting a total of 59 residents. Each resident has a private bedroom/bathroom suite in safe surroundings on five acres off of West Truckers Drive. The location has easy access to interstates and highways, as well as medical care.

Clarity Pointe Fayetteville is licensed as a Level II assisted living community and has applied for certification as an Alzheimer’s Special Care Unit (ASCU) by the Arkansas Office of Long Term Care. The operation is a joint venture between LCS (Des Moines, IA) and Harrison Street Real Estate Capital (Chicago, IL), and in development by CRSA/LCS Development, LLC.

The U.S. Air Force has awarded a $3.5 million contract to Arkansas Power Electronics International Inc. to develop a high-temperature silicon carbide power module for the F-35 Joint Strike Fighter.

Arkansas Power Electronics International (APEI) — the largest company affiliated with the University of Arkansas at the Arkansas Research and Technology Park — specializes in advanced, high-performance electronics for a variety of customers and applications, including the defense, aerospace and hybrid/electric vehicle markets.

The silicon carbide power module that APEI will develop for the fighter jet will be based on the company’s wide band-gap material packaging and device expertise. A wide band-gap material is a semiconductor that withstands much harsher environments and enables high performance applications.

The Air Force contract will fund the transfer of laboratory-tested silicon-carbide power electronics technology developed at APEI to a motor drive on the F-35 that allows the pilot to control the aircraft’s flight control surfaces, which include flight altitude, ability to turn, speed, stability and other vital features.

The Joint Strike Fighter, currently in development, is part of the Air Force’s new “more electric” and “all electric” aircraft design philosophy, which mandates the replacement of costly and bulky mechanical hydraulic aircraft flight control systems with lighter weight, high-reliability, low-maintenance electric motors and drives.

APEI frequently collaborates with faculty at the University of Arkansas and a majority of its 49 employees are graduates of the university.

The Environmental Defense Fund said it is working closely with Wal-Mart Stores and its suppliers to reduce the number of toxic chemicals used in everyday household products.

“It's the largest and most ambitious effort to phase out hazardous chemicals from common household goods, and a prime example of big an impact we can have when we work with major companies,” noted Sarah Vogel, director of environmental health for the EDF.

Wal-Mart consumer product suppliers received a letter two months ago from the retail giant detailing new requirements on phasing out a list of toxic chemicals found in goods sold in Wal-Mart stores. The comprehensive initiative is by far the largest and most ambitious of its kind, according to Vogel. She said it reflects a growing trend in which consumer and wholesale purchasing power are combining to change the chemical makeup of the products we see on store shelves and bring into homes.

The new Wal-Mart chemical policy guide is available at this link on the retailer’s website.

Michelle Harvey, senior manager for corporate partnerships with the EDF in Bentonville, said the policy targets about 10 chemicals of concern in consumer products for replacement with safer ingredients. Harvey notes that this change chiefly affects non-food "consumables," products like baby shampoos, lotions and air fresheners. The policy also expands ingredient disclosure to the public. The effort also requires leadership from Wal-Mart through a commitment by the retailer to align their cleaning products with the EPA's Design for the Environment Safer Product Labeling program.

The partners spent several years developing the policy and deciding how to implement the unprecedented measures across a sprawling global supply chain with hundreds of suppliers. Vogel said the solution had to be robust, credible and transparent. 

For now the policy covers chemical intensive consumable products sold at Walmart U.S. and Sam’s Club stores, including health and beauty aids; cosmetics and skincare; baby care; pet suppliers and household laundry and cleaning products. The partners plan to expand the list in the future.

Harvey noted in her recent blog that the responsibility now falls on the suppliers to deliver the goods, and on Wal-Mart who will have to hold suppliers accountable. She said the EDF is keeping a close watch on the progress.

The Wal-Mart policy targets chemicals that are classified as a carcinogen, mutagen, reproductive toxicant, or is persistent bioaccumulative and toxic. They added any chemical that has produced evidence of probable serious effects to human health or the environment to the “Priority Chemical List.”

Harvey said Wal-Mart has asked suppliers of formulated products to disclose their ingredients since 2006. In the fall of 2013, Wal-Mart zeroed in on the initial list of chemicals it would target for reduction, restriction and elimination.

She said suppliers are being told if their product ingredients contain any of the targeted chemicals, but the retailer has not yet released the list to the public. Harvey said suppliers disclose product formulations, using a third-party reporting system designed to protect proprietary information while still providing the necessary data. 

She said by this time next year, suppliers will have to publicly disclose each product’s ingredients (though not the formulas themselves). To make sure a chemical isn’t replaced with another toxic substance, Harvey said Wal-Mart has taken the step of announcing that “all suppliers are expected to reduce, restrict and eliminate use of priority chemicals using informed substitution principles” that transition to safer chemicals or non-chemical alternatives.

Wal-Mart is not trying to become the next Whole Foods or a local co-op, Harvey said.

“Its chemicals policy is designed for a mainstream market, and it is going to be carried out in concert with the company’s famously relentless emphasis on everyday low prices,” she explained.

Wal-Mart has said it wants to collaborate with the suppliers on this issue. The retailer also has its own private label product formulations to tweak because it is not exempt from the new chemical policy. Harvey said some big suppliers including Colgate-Palmolive and Johnson & Johnson have recently joined longtime front-runners like Seventh Generation in tackling the challenges.

“While there might be some grumbles behind closed doors, the incentives to comply with the policy are considerable. In the end, there’s nothing like a public spotlight on measurable goals to engage the competitive spirit,” Harvey notes.

Arkansas is known as being a large exporter of farm-raised goods, such as rice and soybeans. But another export in Arkansas could be getting a push for incentives during the next legislative session in hopes that it will help expand the industry and make Arkansas competitive with surrounding states.

According to Chad Causey, executive director of the Arkansas Aerospace Alliance, the industry is among the largest exporters in the state and it is responsible for thousands of jobs.

"Companies employ about 9,000 in the industry" in Arkansas, he said.

And the industry continues to grow, in spite of cutbacks in government spending that typically fund contracts with large aerospace and defense contractors.

"The economy in aerospace is turning the corner. We're starting to see growth. Now there was a concern (about the impact) Sequestration (would have) on defense spending, but Lockheed Martin just had between a $250 and $500 million contract in ballistics. So there might be some contraction nationally but we're seeing some big awards for Camden that will bode well for them."

He said for the industry to continue to thrive in Arkansas, the state would have to continually work to have a qualified workforce available to meet the demands of companies already in the area and looking to come to the area.

"We're working with the STEM (Science, Technology, Engineering, and Mathematics) Coalition and two- and four-year schools right now," he said. "But we are also working toward things we can do with the general assembly to further incentivize that workforce and attracting new workforce."

Already other surrounding states offer incentives to attract aerospace industry to their regions. Oklahoma officials recently passed legislation that would extend tax incentives to not only employers, but also employees, in the aerospace industry.

"The aerospace engineer tax credit has helped to create hundreds of new, high paying jobs for skilled Oklahomans," said Republican Gov. Mary Fallin on April 9, the day she signed the extension of the law. "It's also played a key role in maintaining Oklahoma's position as an internationally recognized hub for aerospace business. …When it comes to the growth-potential for aerospace in Oklahoma, the sky is truly the limit. This legislation will help us to attract and retain new business and retain the great jobs made available by industry giants like Boeing and American Airlines."

Causey said the AAA has watched the Oklahoma tax credit closely.

"That's something the Alliance is interested in," he said. "We have to look at the regional approach. We are competing for a trained workforce in the same region they are. We are interested in the ways they incentivize getting a trained workforce. That is something we will watch and consider for the next General Assembly. That is something we will advocate."

Before going to the General Assembly and seeking any sort of incentives or other programs to help the Arkansas aerospace industry, he said a platform is needed.

"We are in the midst of developing an aerospace platform that we would take to the General Defense and Aviation Caucus members to work with them to incentivize further ways that we can attract and retain a trained workforce."

According to Causey, addressing incentives and working with local schools to create programs is just one part of the equation. He said Arkansas needs to continue promoting itself as a regional player in the field, as well, marketing itself to suppliers that serve larger aerospace manufacturers in Kansas, Oklahoma and Texas.

Part of that promotion involves taking Arkansas to the aerospace industry through events like international air shows and industry conferences, instead of expecting the industry to reach out to Arkansas. Causey said plans are already underway for a state delegation to visit an international air show near London in the United Kingdom later this year.

"So we're already in the process of educating the industry that we're located here and open for business. That is our number one export and a lot of people don't know, especially in light of us being a heavy agrarian state, but our number one export to the global market is aerospace goods," he said.

He also said Arkansas is well established in the industry, but it is not enough to just be satisfied, which is why the AAA is going to make its push for legislation and incentives next year.

"That will be a good launching point in the General Assembly during the next few years, the fruit of that labor will be improving the business environment for aerospace companies. We're doing that now and I think Arkansas is a great place for aerospace companies to grow in."

On the day when the Port of Fort Smith officially opened its new railroad tracks to the public, its operator was full of thankfulness for the grant the port received from the state of Arkansas to replace aging rail lines.

Marty Shell, president and CEO of Van Buren-based Five Rivers Distribution and the operator of the Ports of Fort Smith and Van Buren, said it was only with money from the state that the project was been completed.

"We are just showing our appreciation to Sen. (Jake) Files, Sen. (Bruce) Holland, Rep. (George) McGill, and Rep. (Stephanie) Malone. They brought state dollars into the Fort Smith River Valley area for infrastructure needs. So we are showing our appreciation to them for getting that money for us to get that done,” Shell said.

Files, a Republican senator from Fort Smith, said it was a bi-partisan effort by Fort Smith's delegation in the General Assembly that made the replacement of the railroad line at the port possible.

"This funding in particular came from general improvement funds. And it was important – all the representatives and senators from this area deemed it important enough (for funding). We were going to lose jobs and future opportunities for jobs if something wasn't done,” Files explained.

In all, the grant from the state's general improvement funds provided $83,000 in funding "to re-do the railroad tracks at the port of Fort Smith," Shell said. "The tracks were 43-years-old. We put in new tracks at the port back in December.”

Shell echoed Files' explanation that jobs were at stake if the nearly half-century old tracks were not replaced.

"The Port of Fort Smith, especially for the entire Fort Smith region, it's a public port. To have intermodal facilities, it's vital to the region to retain jobs and attract jobs. It's important for the economy. To revamp the rail, that helps us continue with our rail growth."

According to statistics provided by Shell, when his company took over operations of the port, there was no rail traffic operating at the facility. He said as of last year, the number had jumped to 417 rail cars that had traveled through the port's facility and that number should continue to increase with the new tracks.

"The old tracks couldn't handle the traffic we were putting through there. With their help, we were able to put the new track down."

With the new track, Shell is already planning for the future of business operations at the port.

"The plan for the future is to continue the growth for the port with truck, barge and rail. But putting these new rails in, it gave us another 20 to 30 years (before we need additional rail enhancements). Without those four individuals and the city of Fort Smith and the port, we wouldn't see the growth and the rail for that facility. It was a very good thing to happen for this area."

Part of the growth plans, Shell said, include a new 30,000-square-foot warehouse facility in coming years, but he said he couldn't plan on expansion before the rails were replaced.

Files said more growth is likely to come to the river in the coming years, thanks to legislation he and others in the legislature sponsored and pushed through during the 2013 session.

"I was the lead sponsor of a bill we passed to form a tax credit for waterways … to go to public and private entities to do more development along the river. We've got a tremendous opportunity to be a major player in transportation. It's been overlooked."

He specifically mentioned the dredging of the Arkansas River to create a 12-foot deep channel, among many other needs along the river.

"I was encouraged (by the bill's passage)," he said, adding that projects like what was shown to the public Thursday (April 24) would continue happening in the years to come and would be an important part of the state's economy.

"What's good for Fort Smith is good for Arkansas," Files said.

It was 15 years ago that Mark Simmons, chairman of Simmons Foods, and two other members of the John Brown University Board of Trustees, first discussed the possibilities of establishing a center for business and ethics leadership with retired Wal-Mart executive Don Soderquist in mind.

Simmons said they took Jo and Don Soderquist to dinner in Tontitown and it wasn’t long before the center became a reality. He said Don didn’t just lend his name to the center, he and the his entire family have been passionate leaders since day one.

Chuck Hyde, CEO of the Soderquist Center, described Don as the drumbeat within the organization setting the pace and rhythm that never wavers.

More than 500 business and academic professionals gathered Thursday night (April 24) to help the Soderquist Center for Leadership and Ethics celebrate its 15th anniversary on the John Brown University campus in Siloam Springs.

Don Soderquist assembled a cast of corporate heavyweights to have an intimate conversation about leadership and ethics as the main event capping off a full day of celebration.

John Pepper, retired CEO of Procter & Gamble (2003); Doug McMillon; CEO of Wal-Mart Stores Inc.; Steve Reinemund, retired CEO and chairman of Pepsico (2006); joined in the discussion with Soderquist who spent nearly two decades in top management at Wal-Mart including board service until 2003.

Soderquist joked that these corporate leaders were chosen after six other people turned him down. He then said the trio of leaders on stage were his top pick, because they each “walked the talk,” and were leaders he personally admired.

LEADERSHIP LESSON
When asked to share one lesson they learned in leadership along the way, Pepper said sometimes you have to let the other shoe fall. He said there is no compromising what is right. 

He then shared how during the height of the Toxic Shock Syndrome that P&G had a just launched a new tampon product that quickly garnered 30% of the marketshare. Pepper said even though there was no scientific proof the product was linked to the serious medical disorder, P&G pulled it. 

“The cost of pulling the product was immaterial, given the seriousness of the disorder and the unanswered questions in the public sphere,” Pepper said.

He said one last lesson he learned from his wife of 50 years is that “anything is possible,” a conclusion he reached when she agreed to marry him after three years of proposing.

“Leaders have to develop other leaders,” Reinemund said, which sometimes gets overlooked as there are so many distractions and other tasks for top executives to attend to regularly.

He said one program he ran for five years as CEO of Pepsico was taking a full week to pull out 40 junior executives who spent the entire time offsite in professional and personal planning. 

“We provided them with all the counseling they needed for personal and professional (guidance), and the most widely regarded segment in each of the five years was the training Don (Soderquist) provided in business ethics,” Reinemund said.

Soderquist said he was amazed that a CEO for a multinational company like Pepsico invested so much of his own time with 40 individuals. He said that alone made a huge impression on those junior leaders.

“He even gave them his cell phone number, a point of personal contact, and told them to keep him informed if they saw something wrong.,” Soderquist said of Reinemund.

CULTURE KEEPER
McMillon was asked to comment on the importance of corporate culture, something he said was ironic because Don Soderquist, also onstage, was tagged as the keeper of the Wal-Mart culture following Sam Walton’s death.

“Culture is like the operating system for an organization. Everything else works because of the culture,” McMillon said. “I tell a lot of stories, something I learned from Don. We work hard to try and keep the culture contemporary but genuine.”

He said learned may years ago how deep the culture ran on his second day of working a summer job as an unloader at a Wal-Mart Store.

“I was paired with this older guy named Johnny ... I worked hard to keep up with him all day. When we were clocking out he began to tell me what Wal-Mart meant to him, sharing the culture in his own way. I thought to myself if this company means that much to a truck unloader, they must be pretty special,” McMillon said.

He said his second day as a junior buyer some years later, he was met by Ray Hobbs who told him the cups in the cafeteria were cheap, so take two to keep from burning the hands with hot coffee.

“He also told me if you found something wrong to fix it, to take responsibility for it,” McMillon shared.

ETHICS RULE
“Example is not the main thing, is the only thing,” Pepper said when asked about advice on ethics.

When Pepper was running the International business for P&G he said there was an incident in Africa where the company could not transfer in certain items needed for their operation without paying a bribe to authorities.

“We went on without the items and appealed to the government for five months. There was never a question in the chain of command on the ground about the right thing to do,” Pepper said.

McMillon shared a similar story about former CEO Mike Duke, who was traveling in Russia when the corporate airplane broke down. He said to get the part needed to fix the plane they were asked to pay a bribe. 

“Mike left the plane there and he and his team took a commercial flight out of there. The plane was parked there until finally they (Russians) finally gave up,” McMillon said.

Reinemund said a disgruntled employee at competitor Coca Cola sent new product formulations to PepsiCo when he was CEO. 

“I got a phone call from the CEO of Coca Cola one day thanking me for our actions, of course I had no idea what he was talking about. After some investigation I discovered an administrative assistant got the package, opened it and recognizing what it was, she packed it back up and sent it back to Coca Cola’s general counsel. She had told no one and had not showed the information to anyone else. This employee did what she thought was the right thing on her own. It was a great day for PepsiCo,” he said.

In each of the incidents, Soderquist said the ethics were imbedded into the people reacting.

RISK TAKING
Soderquist asked McMillon to talk about the delegation of responsibility given the size of Wal-Mart and how he handles that task.

“I believe we have to create an atmosphere that facilitates risk taking. We have to provide a safety net at times when there are failures. Wal-Mart didn’t get to be where it is today without taking some risks. I believe risk taking should be rewarded,” McMillon said.

One caveat to that, according to Reinemund, is that top leaders should set the parameters for the level of risk taking involved. He also said there should never risks taken when it comes to ethics.

“That is especially true today as it is so hard for a company to recover when there has been some ethical miscalculation,” Reinemund, who is also on the board of directors at Wal-Mart Stores.

Pepper recalled one particular risk he took in 1986 when Tom Muccio came into his office asking if P&G could send 28 people to set up a new office in Northwest Arkansas.

“I agree to send 13 or 14 to start with, and he was back in two months to get the other 14. That was a risk we took,” Pepper said.

Soderquist added that by taking the risk, P&G reshaped the supplier/retailer relationship from an adversarial nature to a more collaborative one. 

“Just think about how that one decision has helped transform this region today with the number of suppliers and economic opportunities that exist,” he said.

IN A NUT SHELL
Each of the respected leaders were asked to boil down in nut shell one thought about leadership advice.

“Do not miss an opportunity to make a bigger difference. Seize the moment,” McMillon said.

“Create a vision for your team to achieve a noble business,” Reinemund said.

“Don’t compartmentalize your life, business, home, church, but let your values be the same because you are just one person,” Soderquist said.

“Do anything that is right, and do it with excellence,” Pepper said.

The mortal side of politicians, more orange barrels for Northwest Arkansas, big money for a Wal-Mart exec and bad bridges are part of the Northwest Arkansas Friday Wire for April 25.

NOTES & ANALYSIS
• Political perspective
During these election cycles when the mere mention of a political issue can ruin a family reunion or Sunday School class and send angry words flying between even the kindest of folks, we forget that those who step out to run for office and put their name on the ballot are breathing, feeling humans.

Or, as Shakespeare might have noted if he were a politician: “If you prick us, do we not bleed? if you tickle us, do we not laugh? if you poison us, do we not die?”

An aortic dissection, a medical issue new to many of us, served – or should have served – as a reminder that the person who may have asked for your vote is mortal. The emergency surgery this week on U.S. Sen. John Boozman (of Rogers by way of Fort Smith and Northside High School and Razorback football) to repair an aortic dissection turned out good for Boozman. As of Thursday (April 24), he was doing remarkably well.

A statement from his Senate office included this paragraph: “His family, who continues to be with him at the hospital, has indicated that doctors are amazed at how quickly Boozman is recovering from the surgery. As he continues to regain strength, Boozman has been conversational with family for long stretches of the day and walking frequently with the aid of medical staff.”

We should know that Boozman’s condition and the emergency surgery performed earlier this week are anything but trivial, routine and easy. The Mayo Clinic notes that a tear in the inner layer of the aorta “is a serious condition,” and that “aortic dissection is often fatal.”

Kudos to the doctors and nurses and other staff who worked on Boozman and continue to work with him, and we hope the good Senator’s recovery will continue to trend as it has in the first few days.

ICYMI
Following are a few stories posted this week on The City Wire that we hope you didn’t miss. But in case you missed it ...

• Road work to intensify in NWA
With a population on the brink of 500,000, Benton and Washington counties grew beyond their infrastructure long ago. More than a dozen major road projects are underway in Benton County, which means the growing pains will exist for a few more years.

• Traffic patterns
First quarter 2014 commercial airline enplanements are up 5.36% and 9.1%, respectively, in Northwest Arkansas and Fort Smith, but down more than 6% in Little Rock.

• NWA home values on the rise
The biggest investment most families make is their home, but the past few years it’s been painful to look at neighboring home sales prices, especially for homeowners who purchased in the past decade. And that’s true even in the strong economy of Northwest Arkansas.

NUMBERS ON THE WIRE
$4.31 million: Amount of sales tax collections in the April reports from the cities of Bentonville, Fayetteville, Rogers and Springdale. The amount was up 8.61% compared to the same period in 2013.

$25.592 million: Total compensation for Wal-Mart CEO Doug McMillon in fiscal 2014, with $23 million of that including stock awards linked to future financial performance.

$60 million: Estimate on the cost of Interstate 49 (aka I-540) widening projects set for 2015 through Benton County.

OUTSIDE THE WIRE
• Bad bridges
More than 63,000 bridges across the United States are in urgent need of repair, with most of the aging, structurally compromised structures part of the interstate highway system, an analysis of recent federal data has found. The report, released on Thursday (April 24) by the American Road and Transportation Builders Association, warned that the dangerous bridges are used some 250 million times a day by trucks, school buses, passenger cars and other vehicles.

• Minimum wage pushes around the nation
A wave of efforts to raise the minimum wage at the state and local level will run through November, when voters in eight states could consider ballot measures to raise hourly rates higher than the current $7.25 federal rate.

WORD ON THE WIRE
“One thing we have learned is that consumers don’t mind shopping at multiple stores for what they perceive are the best values. Consumers have a need to feel smart, by cherry picking values they feel they are doing the best they can for their families. We also know that consumers are willing to take advice from complete strangers via social media.”
– Mickey Mericle, vice president for global consumer insight at Wal-Mart, speaking about constantly changing consumer expectations

“The U.S. has seen 200 airlines come and go and we are now down to four major carriers and just a handful of start-up discount carriers (discount airlines). There are hundreds of airports nationwide doing the same things we are in attempts to get service into their individual markets. We are taking an all-inclusive approach to lure new service into XNA.”
– Kelly Johnson, director of the Northwest Arkansas Regional Airport, about ongoing efforts by airport officials to recruit a discount carrier

The mortal side of politicians, improved traffic at the Fort Smith Regional Airport, the push to build a new jail in Crawford County, and bad bridges are part of the April 25 Friday Wire for the Fort Smith region.

NOTES & ANALYSIS
• Political perspective
During these election cycles when the mere mention of a political issue can ruin a family reunion or Sunday School class and send angry words flying between even the kindest of folks, we forget that those who step out to run for office and put their name on the ballot are breathing, feeling humans.

Or, as Shakespeare might have noted if he were a politician: “If you prick us, do we not bleed? if you tickle us, do we not laugh? if you poison us, do we not die?”

An aortic dissection, a medical issue new to many of us, served – or should have served – as a reminder that the person who may have asked for your vote is mortal. The emergency surgery this week on U.S. Sen. John Boozman (of Rogers by way of Fort Smith and Northside High School and Razorback football) to repair an aortic dissection turned out good for Boozman. As of Thursday (April 24), he was doing remarkably well.

A statement from his Senate office included this paragraph: “His family, who continues to be with him at the hospital, has indicated that doctors are amazed at how quickly Boozman is recovering from the surgery. As he continues to regain strength, Boozman has been conversational with family for long stretches of the day and walking frequently with the aid of medical staff.”

We should know that Boozman’s condition and the emergency surgery performed earlier this week are anything but trivial, routine and easy. The Mayo Clinic notes that a tear in the inner layer of the aorta “is a serious condition,” and that “aortic dissection is often fatal.”

Kudos to the doctors and nurses and other staff who worked on Boozman and continue to work with him, and we hope the good Senator’s recovery will continue to trend as it has in the first few days.

ICYMI
Following are a few stories posted this week on The City Wire that we hope you didn’t miss. But in case you missed it ...

• Happy workers
A recent Gallup poll exploring workplace satisfaction has ranked Fort Smith as the fifth most content workforce in the United States, while the Northwest Arkansas workforce failed to rank.

• Traffic patterns
First quarter 2014 commercial airline enplanements are up 5.36% and 9.1%, respectively, in Northwest Arkansas and Fort Smith, but down more than 6% in Little Rock.

• A call for city vision
On the 125th anniversary of Oklahoma City's founding, its former Mayor Kirk Humphreys was in Fort Smith to speak to the city Board of Directors about what his city did to transform from a place that was boring and dead after 5 p.m. to a city that is now among the fastest growing in America.

NUMBERS ON THE WIRE
$15.5 million: Estimated cost for new 58,000-square-foot visual arts building planned for the University of Arkansas at Fort Smith. The university recently held a groundbreaking for the project.

9.14%: Increase in first quarter 2014 enplanements at the Fort Smith Regional Airport compared to the first quarter of 2013.

3%: Gain in Van Buren hospitality tax collections for the first two months of 2014 compared to the same period in 2013. The city collects a 1% tax on lodging and a 1% prepared food tax.

OUTSIDE THE WIRE
• Bad bridges
More than 63,000 bridges across the United States are in urgent need of repair, with most of the aging, structurally compromised structures part of the interstate highway system, an analysis of recent federal data has found. The report, released on Thursday (April 24) by the American Road and Transportation Builders Association, warned that the dangerous bridges are used some 250 million times a day by trucks, school buses, passenger cars and other vehicles.

• Minimum wage push
A wave of efforts to raise the minimum wage at the state and local level will run through November, when voters in eight states could consider ballot measures to raise hourly rates higher than the current $7.25 federal rate.

WORD ON THE WIRE
"I'm on probation again until August of this year. The letter (from the state) says they're going to ask me to shut it down. If not, they'll file a complaint with the attorney general and it's basically suing Crawford County. Can it happen? Go ask (former) Sheriff (Mike) Allen. Sheriff Allen was brought before Judge Medlock and Judge Medlock said if you go over 64 beds, I'm going to put you in jail."
– Crawford County Sheriff Ron Brown about the need to approve a countywide sales tax increase to build a new $19 million jail

"It's certainly against the nature to release it back into the wild, so to speak, understanding that the proposed use is to keep it as such. But when you have the city park land, it's unusual for a city to give up park land just to convey it back to somebody."
– Assistant Fort Smith Administrator Jeff Dingman about a request by the Fort Chaffee Redevelopment Authority to give the McClure amphitheater back to the authority

Six companies were recently named winners in the ninth annual Tyson Foods’ Supplier of the Year awards program, the company said Friday (April 25).

BJK Flexible Packaging, Elanco and Pepper Source were each honored as by Tyson Foods as suppliers of the year.

BJK makes film and bags for packaging, Elanco is a global animal health company and Pepper Source is a sauce supplier.

Gleeson Constructors & Engineers and Hi-Plains Millwright & Supply were named contractors of the year for their service in Tyson’s poultry, prepared food and meat divisions.

IsoAge Technologies was recognized as Tyson’s advancing food safety supplier of the year for its work to improve the shelf-life of fresh, foodservice chicken.

The awards were presented at a luncheon at Tyson Foods’ corporate offices in Springdale.

The recognitions were based on supply-chain performance, total cost of ownership, pricing programs, customer-service performance, sustainability initiatives, and other performance metrics observed throughout the year.

Scott Price, the CEO of Walmart Asia, is stepping down from that role in June to assume a senior management position in the retailer’s real estate and mergers division. He will be based out of Bentonville, according to a company statement issued late Thursday (April 24).


Price is assuming the role being vacated June 1 by Judith McKenna who will become head of new store format development. This is a position created as Wal-Mart accelerates its small store format growth and experiments with other formats such as Walmart to Go and drive-thru pickup depots.

The two management changes trigger a ripple effect within the retailer’s Asian business unit. Greg Foran, who now serves as CEO of China, will move up to become CEO of Asia, replacing Price. Sean Clark, who has been the chief operating officer for Walmart China, will step into the CEO China role replacing Foran, the company said.

"These promotions allow us to tap into the extraordinary talent we have in our company, leverage their unique strengths to benefit the entire organization, and ensure continuity of leadership in China and the region," David Cheesewright, president and CEO of Walmart International, said in the statement. "While these moves highlight the internal talent we have at Wal-Mart, they also show how we are able to build global talent to meet the needs of the company wherever we operate."

Price joined Wal-Mart in 2009 as the CEO of Asia and he held similar roles for DHL Express and Coca-Cola prior to joining Wal-Mart. 

"Over the past five years, Scott oversaw the success of our EDLP strategy in Japan, helped reset the China business for greater success and revamped our India operations. He also played a lead role for the industry as chairman of the National Center for APEC (NCAPEC)," said Cheesewright.

He said Foran’s step up is a logical move, given he has 30 years of global retail experience. He joined Wal-Mart in 2012 but grew his career in New Zealand and Australia with Woolworth’s supermarket division. His experience includes operations, merchandising, marketing and replenishment.

"Greg, Sean and their team laid a solid foundation and built a strong plan for Walmart China," Cheesewright said. "In his new role, Greg will be able to continue to guide our China growth plan as well as provide support and direction for our other Asia businesses."

Clarke has 15 years with Wal-Mart, which began with ASDA. He also served as chief financial officer in Japan and Germany before moving to Canada. Clarke also led real estate and strategy for Walmart Canada. Over the past two years as COO of Walmart China, Clarke oversaw operations, merchandise, logistics, marketing,information systems and asset protection.

"Sean has been a key contributor to our improved performance in China. His experience and background uniquely prepare him for this role and will ensure continuity for our progress in China," Foran said.

Walmart's Asia region serves customers through more than 870 stores and more than 150,000 employees serving customers in China, India and Japan.

The Fort Smith Convention & Visitors Bureau announced recipients of the 2014 GRIT (Giving Recognition in Tourism) Awards.

Restaurant Partner of the Year:
Golden Corral

Lodging Partner of the Year
Homewood Suites by Hilton

Attraction Partner of the Year
Fort Smith National Historic Site

Business Partner of the Year
BrickCity Emporium

Polly Crews Hospitality Person of the Year
(a tie) Floyd and Sue Robison & the late John Bell Jr.           
 
The Fort Smith Convention & Visitors Bureau also recognized the “Hometown Hospitality Heroes” who have brought or hosted tourism events in 2013-14. These recipients are:
• Sharon Chapman and Melissa Schoenfeld, for their work and assistance with the Regional Dance American Southwest Festival 2013;
• Sebastian County Sheriff Bill Hollenbeck, for his work on the Arkansas Sheriffs’ Association Convention for 2013;
• Brooke Shock and Courtney Shreve, for their work on the Konsplosion Anime Convention; and
• Mike Alsup, for his work on bringing the Arkansas Recreation and Parks Association and Arkansas Therapeutic Recreation Society Conventions to Fort Smith for the last three years.

Three Northwest Arkansas educators received honors April 19 during the Arkansas History Day events at the University of Central Arkansas in Conway.
 
Darren Vaughn of Central Junior High School in Springdale was awarded the Patricia Behring Outstanding Teacher Award for the junior division. He received $500 for his outstanding leadership and experience as a History Day teacher. Vaughn will advance to the national level to compete for a $10,000 award.
 
Conner Brown of Central Junior High School in Springdale was awarded the Sarah J. Fountain Outstanding Novice Teacher Award for the junior division. This was a $200 award presented by the Arkansas Association of College History Teachers.  
 
Dr. Jami Forrester of NorthWest Arkansas Community College and region 10 History Day coordinator was awarded the History Channel Award for Service. This award recognizes an individual who has supported History Day Arkansas through activities outside the regular classroom. Forrester advances to the national level to compete for a $5,000 award sponsored by the History Channel.
 
NorthWest Arkansas Community College Region 10 History Day program sent 80 students with 47 projects to the Arkansas History Day competition. Twenty-five students with their 17 projects were recognized for outstanding achievements.

One more bank has filed suit against former Arvest bank executive H. Dennis Smiley Jr. for loan defaults totaling $70,000 made in 2013. First Federal Bank noted in its complaint filed Thursday (April 24) in Benton County Circuit Court that it made two loans to Smiley last year — $50,000 line of credit and $25,000 term loan.

Both loans were guaranteed by Smiley, personally and the $25,000 loan was also guaranteed by the Henry Dennis Smiley Revocable Trust, dated Sept. 29, 1994, according to the court filing.

Following Smiley’s resignation in March, First Federal said it made demand for payment   which has not been received. The bank asked the court for two judgments amounting to $49,999.96 and $20,000 with interest accruing until payment is made.

Unlike the other 10 banks who have also filed for payment with the court, this time Smiley did not use his Arvest bank stock for collateral. These loans were made with Smiley’s personal guarantee as collateral. 

It is not known what assets may or may not be contained within Smiley’s revocable trust which has been used as collateral in at least two other loans — Bank of Fayetteville $250,000 and Signature Bank amount not disclosed.

Also Thursday, Smiley filed his first response with the court since the onslaught of legal complaints began March 25. Through his legal team, Kenneth Mourton of Ball & Mourton Ltd. of Fayetteville, Smiley answered the complaint made by Delta Bank & Trust. 

The filing notes that the purported signature of his father “H. Dennis Smiley Sr. that appears on the promissory note and guarantee may not be the actual signature of Smiley Sr.” The junior Smiley admitted nothing except that his father’s signature as it appears on the loan documents may be fake.

Henry Dennis Smiley Sr. was a co-maker in $245,126 loan extended by Delta Bank & Trust on Feb. 20. Delta Bank & Trust also sued him for nonpayment of that loan. The senior Smiley filed an answer with court on April 11, saying he did not sign the loan documents, had no knowledge of the loan, nor did he grant anyone authority to sign his name.
http://www.thecitywire.com/node/32707#.U1riIMcs8jc

There have been no criminal charges filed against Smiley, but sources told The City Wire that federal authorities have been investigating the alleged bank fraud for nearly three months.

Smiley is believed to have borrowed as much as $4.5 million using the same collateral and on his own reputation in the banking community. The tangible collateral used multiple times was his shares in Arvest Bank Group, a non-transferable asset, according to Arvest.

Arvest, hit with 20 demands for payment from banks around the state, placed Smiley’s stock proceeds with the Benton County Circuit Court earlier this month. Those assets totaled $552,000. Arvest asked the court to sort out how gets paid what.

It is still unknown how those proceeds will be divided, given they come no where near what is owed. If the court uses the timeline for when the loans were made. First Western  Bank would be at the head of the line, based on the UCC Finance Statements on file with the Secretary of State. First State Bank of DeQueen, would be second in line. Neither of these banks have filed claims with the court as of Friday (April 25).

Two Northwest Arkansas corporate giants are among the first to mobilize their troops to help when a natural disaster damages a community. That’s exactly what happened within hours of the Sunday night (April 27) tornado damage in central Arkansas and other parts of the country.

With 95% of the U.S. population living within 15 miles of a Walmart Store, anytime weather disaster strikes it’s likely the retail titan will see some impact.

The tornadic storms that cut a path across the Midwest on Sunday directly impacted 11 Wal-Mart workers — the majority of those in central Arkansas with others in Baxter Springs, Kansas and Miami, Okla. Ten of those lost their homes and/or their vehicles. One Walmart worker tragically lost two grandchildren in the storm, according to Dianna Gee, corporate spokeswoman with Wal-Mart Stores.

“We are providing crisis counseling and other services to our associates who were victims of these storms. This is a top priority. Within an hour of the storms near Vilonia last night we had store managers in that surrounding area coordinating aid. Today store managers in Vilonia are going grid to grid trying to locate unaccounted for associates,” Gee said.

Wal-Mart store managers on Sunday night began loading pallets of donations such as in water, snacks, tarps, batteries and flashlights for survivors and first responders. 

“Today, we are working closely with the American Red Cross to donate two truckloads of water today between 2 and 3 this afternoon in Vilonia and Mayflower,” Gee said.

MEALS THAT MATTER
Tyson Foods arrived on the scene in Mayflower on Monday (April 28) after leaving Northwest Arkansas with two trailers of food. Company workers plan to cook three meals a day for local relief workers and victims as long as they are needed.

“Our ‘Meals that Matter’ relief effort is setting up at the high school in Mayflower, our team members from neighboring Clarksville, Dardanelle, Texarkana and North Little Rock are bringing grills and smokers and helping to prepare what will be three meals a day – starting with dinner this evening,”said Krista Cupp, Tyson Foods spokeswoman.

She said Tyson Foods employs 26,000 in Arkansas and thankfully none have reported losses.

“We know it takes time for these communities to recover. We stayed in Joplin for three weeks providing hot meals. Last year, we were in Moore, Okla., for two weeks. I am not sure how long Central Arkansas will need us, but we will stay as long as needed,” Cupp said. Last year in Moore, Okla., Tyson Foods said it provided 80,000 meals over the two week period.

One lesson Cupp said Tyson has learned is that ice is often an overlooked commodity during disaster aftermaths.

“We will be providing ice to the victims and others who are without electricity, so they can keep their perishable foods from ruining. Our nearby facilities make plenty of ice and they will be sharing it with those in need,” Cupp said.

RED CROSS
Rick Harvey, communication specialist for the American Red Cross in Arkansas, said six volunteers from Northwest Arkansas and Fort Smith left Monday morning with two mobile units headed for central Arkansas.

“All of the mobile units in the state are headed that way. We are running two shelters, one in Vilonia and one in Conway, and supporting four other shelters already open in Mayflower and the surrounding area,” Harvey said.

The Red Cross also will serve three meals a day, and provide snacks and water in conjunction with corporate aid flowing into the region. Harvey said volunteers are streaming in from Texas and surrounding states to help with the clean up.

He said citizens who want to give blood can seek out those opportunities on the Red Cross website.

AVOID SCAMMERS
Arkansas Attorney General Dustin McDaniel issued a statement Monday afternoon saying that phony charities have already sought to take advantage of the storm damage.

“At least one scam charity was identified on a crowd-funding website where people can solicit donations for any purpose,” noted the McDaniel statement.

McDaniel’s office provided the following five tips on how to ensure donations get to where they are the most needed.
 
Here are five ways to make sure storm-relief donations go to those who need it most:
• Confirm the validity of the charity. Go to ArkansasAG.gov for a list of those charities registered with the state of Arkansas.

• Be cautious of donating to sites promoted solely through social media.

• Double-check crowd-funding sites. These accounts are easy for scammers to create.

• Give to a trusted organization. Local churches and relief groups like the American Red Cross and Salvation Army are already on the ground helping those affected.

• Make donations through a secure website. A simple way to check for security is to make sure that “https” is listed in the URL (web address).

There are 47 million consumers receiving SNAP benefits (commonly known as food stamps) that equate to $74 billion in annual food sales. Wal-Mart, as the nation’s largest grocer, has said it garners about 18% of the SNAP market, or roughly $13.2 billion in annual sales.

Nestle, a large food supplier to Wal-Mart Stores, began two years ago to measure the SNAP benefit on its company sales at Wal-Mart using analytics and point-of-sales data. Nestle said this study does not take in account the SNAP cuts that took place late last year.

“We set out to discern when SNAP customers shop — the day of the month. Where they shop — which stores. And we used sales data to figure out what products they were buying. When you know all of this about shoppers you have a trifecta that can help influence sales, by making sure you have the products they want in the stores they shop on the days they shop,” said Ginger Brooks, director of strategic marketing for Nestle.

Brooks and four of her colleagues presented the case study at the recent Supply Chain Conference at the University of Arkansas.

Brooks said Individual states oversee the SNAP payments and dates of fund deployment range from every day of week in some states, while others issue SNAP only on the first to the fifth day of the each month. Still, others pay mid-month and a few states pay at the end of the month.

Nestle then looked at which Walmart Stores were high traffic SNAP sites and began to track the sales data of the large count Hot Pocket items in those stores.

Brooks said Nestle’s sales increase for Hot Pockets mirrored the dates of SNAP fund payments. By the fifth day of the month in Arkansas the product had a 200% lift in sales directly linked to the SNAP payments. In Arkansas, she said about half of the Walmart Stores are high SNAP usage.

“That’a big impact with not a lot of recovery time for the supply chain, especially when you consider they are always shopping on the same day. In Georgia the SNAP funds go out every other day, and the stores have little time to recover,” Brooks said.

The propensity to be out-of-stock is high just after the SNAP deployment dates so Nestle worked with their supply chain and the retailer to make sure they have product in the stores, especially those with high demand. Cheri Dillard, supply chain manager for Nestle, said it is a supplier’s nightmare to have SNAP funds paid and shelves empty at the retailer.  

“Over 50% of SNAP shoppers don’t own a vehicle. They are depending on someone else to get them to store for their shopping. If we don’t have the products they want on the shelf that day, they are not going to come to back. It is a lost sale,” Dillard said.

She said shelf space is limited especially when trying to place enough product to handle a 200% sales increase, and it’s likely suppliers don’t have enough modular space in the typical aisle placement. In some cases Dillard said the sales lift is much higher than 200% on SNAP days. She said it is important to work with the category manager on sales feature promotions that provide for additional buying and storing of product.

But that’s not enough. Nestle has its own team of merchandisers out in the high SNAP user stores working with Walmart Store management to make sure they have enough product on the floor the days SNAP funds are paid. Dillard said every store has its own specific replenishment plan for Nestle product, a plan that was put in place after all data was mined, including SNAP payments dates and regular payday cycles like the first and the 15th of each month.

“We can’t have products sitting unsold for two weeks in one store and shelves empty in other stores. So each store has its own plan,” Dillard said.

Greg Kessman, supply chain director for Nestle, said getting the product to the store on time is just half the battle. Nestle also went to work setting up an alert system that is triggered when shelves are empty, but the product is somewhere in the back room.

“We know out-of-stock is a huge opportunity and Nestle set out to measure its true lost sales from on-shelf availability issues with data analytics written in-house,” Kessman said.

The off-shelf alert system was first tested in five supercenters in California. Nestle put a team of merchandisers in the stores to check all alerts to get a sense how many false positives they could expect. The alert system test triggered 575 off-the shelf alerts, 225 of those were actual out-of stock incidents. The company said it worked to get the system to an 80% accuracy level and now it is used throughout Nestle’s business with Wal-Mart.

Nationwide, Nestle said it gets between 40,000 and 60,000 alerts daily from Wal-Mart Stores for products that are off the shelf. As to a return on investment, this application of data analytics Nestle reports a $100 benefit every time it detects and corrects 10 off-shelf incidents.

The supplier said just using the point of sale data generated by the retailer does not tell the whole story. That is why it has worked with Wal-Mart sharing its own statistics and bringing in the government SNAP data to paint a picture of opportunity for generating more sales —  a win-win for both players. Nestle said that happens because it is making sure it has the products SNAP customers want on the Walmart shelves at the precisely the right time.

Fort Smith-based ABF Freight System has once again earned the National LTL Carrier of the Year Award from the National Shippers Strategic Transportation Council. ABF Freight has now earned the Carrier of the Year Award four times, gaining recognition in 2014, 2013, 2011 and 2010.

“In receiving this award we acknowledge the ABF Freight professionals who have not only persevered through adverse market conditions but also have continued to uphold the highest standards of professional integrity and operational excellence,” ABF Freight President and CEO Roy Slagle, said in a statement. “We also want to recognize NASSTRAC and all the shippers who nominated ABF Freight to receive this prestigious award. They are true professionals that positively shape the industry’s landscape by serving as a powerful voice speaking on behalf of both carriers and shippers, and it is their participation that makes this award meaningful.”

Through its annual Carrier of the Year Awards Program, NASSTRAC recognizes carriers that have demonstrated excellence in transportation. This program also helps shippers to identify the best of the best in carrier performance and value.

Regular members of NASSTRAC who are qualified buyers of transportation services grade all carriers that are members on a quantitative scale in five key areas:
1) customer service;

2) operational excellence;

3) pricing;

4) business relationship; and

5) leadership and technology.



The NASSTRAC Carrier of the Year program is co-sponsored by Logistics Management, a leading trade magazine for buyers of logistics services.

The Cherokee Nation broke ground Tuesday (April 29) on a new $80 million Cherokee Casino and Hotel at a site adjacent to its more than 20-year-old facility in Roland, Okla.

The new gaming complex will total nearly 170,000-square-feet, which is just shy of three times larger than its current 50,000-square-foot facility that opened as the tribe's first Cherokee Nation Bingo Outpost in 1990.

Features of the new casino and hotel include 850 electronic games, a high limit poker room, a six-story hotel with 120 rooms, 7,500-square-feet of convention space and two new restaurants, including a Las Vegas-style buffet.

"We are bringing our guests the best in gaming entertainment and hospitality," said Shawn Slaton, CEO of Cherokee Nation Businesses. "The new facility allows us to expand our amenities by adding dining options, live music and a hotel. The best part of it all is our ability to create more jobs in the community where our business started."

The construction will bring about 100 new, permanent jobs to the city of Roland, where it already employs more than 300.

In addition, Cherokee Nation Principal Chief Bill John Baker said an additional 100 or more short-term construction jobs would be created as a result of the casino and hotel construction.

Baker said the new casino in Roland, as well as the tribe's other gaming and business interests, are in existence to provide for the citizens of the Cherokee Nation by creating something more than jobs, pointing to the tribe's investment of more than $100 million to expand healthcare options across the tribe's vast land area in eastern Oklahoma.

"I was on the Tribal Council when we decided to move from bingo to gaming. We understood then the purpose was to create jobs and provide a better quality of life for the Cherokee people," he said. "Today, we have more Cherokee citizens employed at our businesses than ever, and for the first time in our history as a gaming tribe, casino profits are going directly to improving healthcare for our people."

Tribal Councilor David Thornton told a crowded tent of tribal and local elected officials, as well as employees and business leaders from the region, that the tribe's assets have increased by 22%, or more than $130 million, since 2011 with net capital having risen by 20%.

"These are things that I really enjoy saying because the operating revenues have went up 20% and the dividends to the (Cherokee) Nation (citizens) have went up 100%, people. That's not counting the extra $100 million that the chief and the nation has brought about for these clinics and I want you to realize that's one hell of a job."

Tribal Councilor Janelle Fullbright said the tribe has long paid its workers, including those at the Roland casino, well above minimum wage and she was glad to know that the tribe's efforts would continue with the additional jobs coming to the Roland location, which she said has been in need of upgrades for a long time.

"When I first was elected to the tribal council seven years ago, I wanted a new casino out here at Roland and we got put on the back burner," she said. "And one of my main jobs has been to make sure that Sequoyah County, the southern-most part of the Cherokee Nation, is not the step-child of the Cherokee Nation any longer. We want to be competitive with people across the river."

She was referring to the Choctaw Nation, which completed its own casino and hotel expansion on the Arkansas-Oklahoma state line at Pocola in 2012 at a cost of $60 million.

With the expansion of both casinos, Fort Smith Convention and Visitors Bureau Executive Director Claude Legris said it would be beneficial to the city's marketing efforts as it continues to lure conventions and tourists to the city.

"Gaming is always good for the Fort Smith economy because it's another attraction that we can turn around and offer folks, both on tour busses and convention groups that want to come into the city," he said. "Even though it's not in Fort Smith proper, it still allows us to say that Fort Smith is almost as much a gaming community as West Memphis and Hot Springs."

He said many times, people looking for a weekend of relaxation and gambling do not realize what the Fort Smith region has to offer.

"Nothing against either of them. They're obviously gaming communities, but I don't think people realize how close the casinos are to the Fort Smith market and that allows us another opportunity to explain to potential customers some of the off-site attractions that are available to folks that are coming into Fort Smith."

Cherokee Nation Businesses Media Relations Specialist Alicia Buffer said the casino should open by May 2015, while the hotel is not slated for completion until August 2015.

Cherokee Nation Secretary of State Chuck Hoskin Jr. said the tribe expected to fill all of the newly-formed positions at the casino and hotel with Cherokee citizens.

The new complex will be located at the same location as the original casino, along Interstate 40 and U.S. Highway 64 in Roland.

Partnering for a greener world was the theme of Wal-Mart’s Sustainability Expo event held Tuesday (April 29) in Rogers. The retail giant assembled a cast of global suppliers, environmental advocates, supply chain experts, farmers and ranchers for the three-day event.

Kathleen McLaughlin, president of the Walmart Foundation and administrator over Wal-Mart’s global sustainability initiative, opened the first session by noting that the expo had convened suppliers representing $100 billion in sales at Wal-Mart.

Wal-Mart Stores CEO Doug McMillon announced a partnership with eight corporate partners and the Walmart Foundation to launch a recycling initiative called the Closed Loop Fund, a investment group that will funnel money to cities across America looking to improve their recycling capabilities. The fund aims to invest $100 million in recycling infrastructure projects and spur private and public funding toward making a real difference in the recycling system in the U.S.

PLEDGE PARTNERS
Companies signing to pledge their support to the Closed Loop Fund include: Wal-Mart and its foundation; John Bryant, CEO Kellogg Company; Rob Gehring, global account leader, The Coca-Cola Company; Kees Kruythoff, president, North America for Unilever; A.G. Lafley, chairman and CEO, Procter & Gamble; Roberto Marques, company group chairman for Johnson & Johnson; Denise Morrison,CEO Campbell Soup Company; Indra Nooyi, chairman and CEO PepsiCo; Monique Oxender, senior director-sustainability for Keurig Green Mountain; Ken Powell, chairman and CEO General Mills; and John Weinberg, vice chairman of Goldman Sachs Group.

Nooyl said people have recycled for 20 years and with all the receptacles that have been made available and the push by businesses during that time, recycling has only increased 8%.

“There is huge opportunity here and this Closed End Fund will help bring this down to the city and neighborhood levels where behaviors have to change,” Nooyi said.

Another interesting perspective was that only one in five people recycle plastic bottles used in the bathroom, according to Johnson and Johnson. 

“Walmart and our suppliers recognize that collaboration is the key to bringing sustainable solutions to all of our customers,” McMillon said. “A great deal of innovative work is happening every day, but there are still too many gaps and missed opportunities. Today’s commitments are about creating real systems change from one end of the supply chain to the other — meaning how products are grown and made, how they’re transported and sold, and how we touch the lives of people along the way.”  
 
Eight of the largest food companies joined McMillon on stage to announce pledges to help move the collective needle in the ongoing sustainability movement. The commitments aim to drive more collaboration and efficiency across the current food system. In total, this work is expected to bring eight million acres of farmland into sustainable agriculture programs and eliminate six million metric tons of greenhouse gas emissions (GHGs).

STEPPING UP 
The Expo highlighted several initiatives to further expand access to sustainable products and create more transparency in the supply chain:

Together with Procter & Gamble, Wa-Mart announced a commitment to a 25% reduction in water per dose for all liquid laundry detergent.

In the area of fertilizer management, Wal-Mart last year set a goal of optimizing 14 million acres of farmland with the potential to reduce seven million metric tons of GHGs. Combined with progress already made, the new pledges announced today will help advance that goal by optimizing an estimated 10 million acres and eliminating 8.5 million metric tons of GHGs.

Working with Cargill, Wal-Mart is developing a small-scale pilot focused on improved beef supply chain visibility, including increased traceability elements resulting in more visibility from farm to fork. This is part of the retailer’s goal to source 15% of its beef supply with environmental criteria by 2023.

In collaboration with Conservation International and suppliers, Wal-Mart has converted 27% of the palm oil used in its private-brand products from conventional to sustainable palm oil.

Wendy Cleland-Hamnett director of chemical safety for the FDA, provided an update on the need for sustainable chemistry. 

“I am thrilled with work Wal-Mart and the suppliers are doing to bring about changes in the chemical sector. The FDA guidelines are the floor, Through voluntary leadership we are seeing businesses raise the bar,” Hamnett said. 

‘SHALLOW PROMISES’
Not all Wal-Mart watchers are convinced the new pronouncements will lead to change.

“At the Walmart Sustainability Product Expo today, Walmart CEO Doug McMillan and other senior leaders once again offered shallow promises with little substance and refused to acknowledge major failures in the company's track record on sustainability,” noted a statement from Stacy Mitchell, a senior researcher with the Institute for Local Self-Reliance, and author of Walmart's Assault on the Climate.

Mitchell said Wal-Mart has a history of broken promises related to landfill waste, renewable power, climate change and sustainability efforts.

“By pushing suppliers to lower cost, Walmart has dramatically cut product lifespans, leading consumers to buy and discard an ever growing volume of shoddy clothing, electronics, and other products, according to federal data,” Mitchell said.

Mitchell also alleges that use of renewable power in the U.S. by Wal-Mart has declined 25% in the previous two years, and that sustainability drives rarely produce results.

“Walmart has a history of failing on its pledges to sell sustainable products. In 2011, for example, Walmart abandoned its promise, made 3 years earlier, to ‘work with suppliers to make the most energy-intensive products in our stores... 25 percent more energy efficient.’ It also failed to meet its 2009 promise to reduce phosphates in laundry and dish detergents by 70% by 2011 and abandoned a 2008 promise to sell only Energy-Star rated air conditioners,” according to Mitchell.

‘WALKING THE TALK’
Wal-Mart officials noted throughout the day that sustainability is a journey and after 10 years, there is still much work to be done. In the true Wal-Mart fashion of leveraging its scale, the retailer is asking more from its supplier partners up and down the chain. McMillon said such requests of the suppliers also means Wal-Mart must be seen as “Walking the Talk.”

Wal-Mart announced plans to create a sustainability store on Walmart.com – shopping portal, expected to launch by the of this year. This shop in a shop will allow customers 
to easily identify brands that are leading sustainability within a category via a special icon.

“No one should have to choose between products that are sustainable and products they can afford,” said Manuel Gomez, vice president of sustainability for Wal-Mart. “We want to make sustainability easy by taking the guesswork out of values-based shopping. Accessibility and transparency really put the customer in the driver’s seat.”

Financial literacy ratings assigned by WalletHub based on federal data indicates Arkansas is way behind the curve when it comes to overall financial knowledge in its consumer population.

The Natural State ranked 50th out 51 places in the recent study that looked at education efforts in financial literacy, high school dropout rates, percentages of people with college degrees, the unbanked and those who borrow from non-bank lenders.

Dr. William Bailey, a professor emeritus at the University of Arkansas, has taught consumer finance to college students for three decades. He is not surprised to see Arkansas rank near the bottom of the barrel in overall financial literacy. He said a financial literacy test routinely given to college students in consumer finance/family finance classes have low scores — 62% nationally and 60% locally.

The WalletHub report found Arkansas to have the following rankings:
40th – High school financial literacy program 
29th – High school dropout rate
48th – Percentage of people with a bachelor’s degree
45th – FINRA financial literacy survey
37th – Percentage of people spending more than they make
32nd – Percentage of people with a rainy day fund
38th – Percentage of people borrowing from non-bank lenders

Financial literacy educators across the country agreed more has to be done to improve financial prowess among consumers, and they said the earlier the better.

“This is a life skill. These high schools, these schools are failing to understand this is a life skill. The sooner you can know about finances, investing and so forth the better off you will be, but with all this emphasis on standardized testing, they just don’t have time for it. Financial literacy should definitely be included in public school curricula,” Keith Weigelt, professor at Wharton School of the University of Pennsylvania, said in the WalletHub study.

Bailey told The City Wire that financial teaching should begin at home. He shared a story of a someone he knew who raised his two daughters alone after the wife died suddenly.

“He would sit those girls down at the table each month when he wrote the checks to pay the bills. In the early years they licked the stamps and as they grew older they helped to track expenses, keep spreadsheets and balance a checkbook. He never hid his finances from those girls and they were able to make sound financial decisions as young ladies,” Bailey said.

He said money topics have been viewed as taboo among family discussions for ages but he has seen those parents who teach financial literacy give their children a gift they take with them to college.

Dr. Ed Bashaw, dean of the College of Business at Arkansas Tech University, said higher poverty rates in the state are part of the reason financial literacy is also lagging. Bashaw said those families struggling to make ends meet, may not want to burden their children with that worry. He was not surprised to learn that Arkansas ranked high in the unbanked category (38), given its influx of immigrants and their general mistrust of financial institutions.

“Poverty is generational and with a lack of education the cycle continues. And in terms of non-bank lending, sometimes it may be cheaper to borrow from a payday lender than bounce several checks. But, once they borrow like that it’s easy to become enslaved,” Bashaw said.

Bailey is concerned about the lack of financial prowess among the general college student population. He advocates for courses to be taught each year at the collegiate level, starting with basic financial topics like credit card and debt management to more in-depth maneuvering cafeteria plans and 401(k) options for seniors about to enter the workforce. He said with student loan debt at $1.3 trillion, this young generation is saddled with a financial burden that could last for 20 years or more. 

“With debt levels now between $20,000 to $35,000 owed per student they are looking at postponing home purchase, starting families and other major life events while they whittle down their student loans,” Bailey said.

Bailey said in an ideal world parents would give children a foundation of sound financial teaching that are age appropriate. He said K-12 educators could and should reinforce and extend those learnings at each grade level as part of the standard curriculum. Then those students who go on to college would get more teachings, but those who don’t pursue higher education would still have the basic foundations.

Kimberly Snipes, senior vice president-auditing at First National Bank of Fort Smith, has been an advocate for teaching basic consumer finance to children for the past decade.  Snipes said the bank is active in the Fort Smith and surrounding communities working with local school systems to introduce children to savings principles and a wide variety of basic consumer finance information. It’s a program she has championed for 11 years. During that time, Snipes said the bank has helped 3,046 school children set up savings accounts, with a $5 initial deposit.

“We are in those elementary schools almost every week from September to May, teaching lessons on the discipline of savings, basic money principles and we look at the U.S. Mint. This program hopes to plant early seeds across many diverse socio-economic demographics, Snipes said.

Since 2003, she said First National has contributed $15,230 back into the communities with their $5 kick-start savings investments and they have contributed many hours teaching the weekly sessions and going to the schools to collect the students’ deposits. The teachings are geared to fourth grade and higher.

“We don’t stop at the elementary level. We go back in and teach a six-week course on personal finance to eighth and ninth graders, which is part of the mandated curriculum in Fort Smith schools,” Snipes said.

At the high school level Snipes said they teach the National Endowment Financial Education curriculum which builds on the earlier teachings. This summer Snipes and her team are working with the University of Arkansas at Fort Smith and 100 high schools students taking part in the federal Upward Bound program.

“These students come from lower income families and they are planning to attend college. We will teach the NEFE program that looks at a wide array of areas from credit, borrowing, savings, checking, career options, etc.,” Snipes said. “We know that teaching and reteaching, helping to build savings habits early and making money a topic of discussion is key to breaking the cycle of illiteracy.”

Arvest Bank conducts similar work with the public schools in Northwest Arkansas.