2012-04 Faulkner County Business Journal

APRIL 2012

Haynes Ace: The Unique, Friendly, Local, Helpful Place.

FULL STORY, PAGE 4

Faulkner 73rd fastest growing county in U.S.

According to data recently released from the US Census Bureau, Faulkner County is one of the “100 Fastest Growing Counties in the US.”

Of the more than 2,500 US counties with more than 10,000 residents, Faulkner County

ranked 73rd in rate of growth.

The county added more than 3,000 residents from 2010 to 2011 according to census estimates. This represents a 2.7% rate of growth.

County Judge Preston Scroggin says that while growth is nothing new to Faulkner County, growing during such

difficult economic times nationally is something to celebrate.

“Nationwide, people are struggling. We’re extraordinarily blessed to live in a place that people around the country see as attractive. Thankfully, we’ve still got the economic opportunities and quality of life to draw people to Faulkner County.”

Scroggin attributes Faulkner County’s growth to its educational systems, growing economy and new role as a destination in central Arkansas.

“People are finding everything they need here.

“We’re building infrastructure that connects us regionally.

We’re a destination for employ-

ment, healthcare, shopping and making a home.”

Benton County in northwest corner of the state was the only other Arkansas county to make the list. Benton County grew at a rate of 2.8% landing in the 70th spot nationally. Faulkner County’s 2010 US Census population was 113,237.

Do

TOP 5 RESIDENTIAL home sales 1810 Royal Drive r St

Centennial Valley Golf Club

Hendrix College

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Hark

Tyle

Mountain View Park

Gatlin Park

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266

Donaghey Ave

Salem Rd

1155 Applewood Cove

Lake Carol-dan

65 40

60

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Conway

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Laurel Park

Caldwell St

60

Oak

Conway Country Club

Oak St

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E Oak St 64

60

E Oak St

64 65

Fifth Avenue Park

Airport Park Central Baptist College

Dennis F Cantrell Field

60

Highway 60 W

Oak Grove Cemetery

S Salem Rd

60

University Of Central Arkansas

286

SH

3101 Stermer Road

286

arkri

Dave Ward Dr 286

der St

286 65

365

Caney Brumley Ar-3

65

65 S

40

365

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286

Ar ka

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2 Richland Hills Drive

Tupelo Bayou Site One Reservoir

365

Gold Lake Estates

Preston

Carter Lake

65 40

2625 Glohaven

PRICE

ADDRESS

CITY

BED/BATH/HB

SUBDIVISION

SQ. FT.

$/SQ. FT.

$351,000

1155 Applewood Cove

Conway

4/3/1

Applewood Cove

3,520

$99.72

2006

$300,000

3101 Stermer Road

Conway

4/2/3

West Ridge

3,463

$86.63

1995

$275,000

2 Richland Hills Drive

Conway

4/2/1

Richland Hills

3,259

$84.38

1998

$273,000

1810 Royal Drive

Conway

4/2/1

Royal Oaks

2,992

$91.24

1993

$270,000

2625 Glohaven

Conway

3/2/1

Cresthaven

2,681

$100.86

2007

2 | FAULKNER COUNTY BUSINESS JOURNAL

YEAR BUILT

Natural Gas Prices: A Two-Edged Sword

BY ROGER LEWIS

The wellhead price of natural gas fell to $2.06 per thousand cubic feet (MMF) in April 2012, which is lower than the production costs. It is the lowest monthly average price since April 1999. Energy costs in the United States, all sources combined, are the lowest of any industrial nation in the world. This is the good news. The bad news is that Oil is $100 a barrel and gas exploration companies are pulling rigs from gas fields to deploy them to oil fields.

The technique of drilling deep, then horizontally, and then fracturing shale with high pressure water and sand has opened vast deposits of natural gas referred to as shale gas.

This technique has rejuvenated the gas exploration industry.

The Arkansas Fayetteville shale play was the second field exploiting this technique after it was developed in the Barnett Shale in Texas. More than 4,000 wells have been drilled in a nine-county area of North Central Arkansas and producing more than $11 billion in gas. The potential for the next twenty years is more than 20,000 wells that produce gas

worth many billions of dollars.

The Fayetteville Shale ranks fourth in production among the major fields. In order of production the major fields are Haynesville Shale (LA and TX), Barnett shale (TX), Marcellus Shale (PA and WV), and the Fayetteville Shale (AR). There are also numerous smaller fields throughout the U.S. Shale gas now accounts for 23% of all natural gas production. While other methods of production will decline, shale gas production will more than double by 2035 becoming nearly half of all production.

The fracking technique, which uses drilling rigs, is also used in oil exploration. This has reopened fields that were dormant, but the demand for drilling rigs is greater than the supply. With gas prices low, drillers are prepared to wait until the price of natural gas gets to $3.50 per MMF before resuming drilling. Oil prices will most likely go down as more is discovered and world tensions ease. Natural gas prices may go up if demand increases.

Due to the low price of natural gas, severance tax revenue collected by the State of Arkansas is down 13% for the first three months of 2012 compared to same period in 2011. Another revenue that is affected by the low price of gas is the ad valorem tax on natural gas production (same as real

estate taxes) paid to the school districts and municipalities.

Royalties’ paid to mineral right holders are down and consequently the income tax they pay on these royalties are down.

The unemployment rate for Conway and Faulkner County has increased significantly in the past several months going from 6.6 percent in December for Conway to 7.4% in February and from 7.1% to 7.5% for Faulkner County in the same period. Declining jobs in the natural gas industry has been a contributing factor.

There is a movement to get signatures to place a constitutional amendment on the November ballot to raise the maximum severance tax on natural gas from 5% to 7%.

This is not the time to do this as it will only further suppress the industry.

The economic salvation for this country lies in its abundance of low cost natural gas which will provide alternative energy sources for generating electricity and powering vehicles. This will reduce pollution and the reliability on foreign oil.

There is so much natural gas available in the U. S. that it is being exported in the form of liquid natural gas (LNG). Ports that were equipped to import LNG are now exporting LNG. China is the largest customer of U. S. LNG and this will help reduce the balance of trade

deficit. But, there is much greater benefit to the shale gas resource. It is rejuvenating manufacturing in the U. S., especially manufacturing that is energy intense but not labor intense. Manufacturers of steel and other alloys, chemical products and solar cells are in this category. Higher labor costs in the U.S can be offset by lower energy costs. Natural gas ranges from four to eight times higher in Europe and Asia than in the U.S. According to the Business Insider Journal, “Lower natural gas prices could prompt manufacturing plants to remain in or move to the United States for production as evidenced by Dow Chemical Co.’s recently announced intent to build its first new U. S. plants since 2001. Royal Dutch Shell announced in 2011 plans to build a new plant in the Appalachian region. Additional interests to increase production in the United Sates has been expressed by numerous other companies, ...” The American Chemical Council recently published a study predicting that more than $16 billion dollars of private investment will be spent to develop petrochemical manufacturing plants in the near future. (Petrochemicals are chemicals manufactured from oil and natural gas.)

SolarWorld, a German company, is building a plant

near Portland Oregon to manufacture solar cells. This industry has dried up in the U. S. because of competition from China whose government heavily subsidizes the industry.

SolarWorld is using a technique to increase the efficiency of solar cells that was developed by the Palo Alto Research Center.

They claim that they can be competitive with the Chinese in manufacturing solar cells even with their government subsidy. The three major costs in manufacturing of solar cells are energy, silver, and labor. Labor is the smallest of the three and silver prices are pretty much the same everywhere. U. S. energy costs are well below China’s, which gives SolarWorld a competitive edge.

The U. S. has been the world leader in research and development, but the high cost of manufacturing has hindered the transition from research and development to product manufacturing in the U. S. Low energy costs may have leveled the playing field. From all indications, the future looks promising for a surge in manufacturing in the U.S. You can obtain more information on the Fayetteville Shale by going to the Pulse of Conway website (www.pulseofconway.com).

I thank my friend Chris Spatz for editing and helping me with this article.

Deadline approaches for Chick-Fil-A LEADERCAST registration

On May 4, Faulkner County residents will have a chance to hear from some of the most well known figures in sports, entertainment, journalism and business.

The event is the Chick-Fil-A LEADERCAST and the Conway Chamber is hosting a broadcast of the one-day

leadership development program.

Speakers at this year’s LEADERCAST include: Tim Tebow, John Maxwell, Soledad O’Brien, Urban Meyer and others.

Conway Chamber of Commerce Vice President of Membership Services Lindsay Wygal says that the event is a unique opportunity to get insight into the leadership habits of some of the

country’s highest achieving personalities. “I think any aspiring leader who attends will leave with new skills or ideas. The diversity of speakers, the setting and the materials all add up to a fun and beneficial day of personal development.”

The local Chick-Fil-A LEADERCAST is sponsored by Conway Copies, First Service Bank, Rhea Lana’s, Fellowship

Bible Church, Textbook Brokers and Ye Olde Daisy Shoppe. The all day event is $75 and includes breakfast, lunch and study materials. More than 160 professionals have already registered for the event. The deadline to register is April 23rd. For more information and to register for the event, visit www.ConwayArkCC.org and click on LEADERCAST under upcoming events.

FAULKNER COUNTY BUSINESS JOURNAL | 3

Fusion is a “store within a store.” According to store manager Brian Perterfield, it has become a “destination for interior decorators” in Conway.

The Fusion area features several well-known brands, including Lampe Berger Paris, Tyler Candle Company and Crabtree & Evelyn.

ACE offers a full-service lawn and garden section with plants, outdoor furnishings and all the equipment and materials to maintain your landscape.

Haynes Ace: The Unique, Friendly, Local, Helpful Place

As soon as first-time customers walk through the doors of Haynes Ace Hardware on Morningside Drive in Conway, they quickly realize it’s not a typical home improvement store.

Immediately to the right of the entrance is an array of official merchandise from the University of Central Arkansas – apparel and flags, tents and vanity plates. In the middle of the store, behind the rack of Tervis Tumblers and next to the glass-enclosed display case stocked with handmade chocolates, there is a home décor area named “Fusion.”

“We’re a hardware store and have the traditional tools an average hardware store has, but we also have items people don’t expect to see,” said Brian Porterfield, marketing and promotions director.

When owners Todd and Leann Haynes opened Haynes Hardware in Conway six years ago, they wanted to bring a different type of home improvement store to the city. Because Ace 4 | FAULKNER COUNTY BUSINESS JOURNAL

Hardware is a retailer-owned cooperative, individual stores within the franchise have the flexibility to customize their offerings based on their customers’ needs.

“Our store is locally owned, so the business our customers do with us stays local,” Porterfield said. “We are able to operate under a nationally recognized brand while maintaining independent ownership.

“The Fusion home décor area, Lawn and Garden center, and Chef Shop are three examples of how the owners and managers who work right here in Conway have executed their vision to have a unique hardware store,” Porterfield said.

The Fusion area features several well-known brands, including Lampe Berger Paris, Tyler Candle Company, and Crabtree & Evelyn. Waxing Poetic Jewelry and Sweet Shop USA Handmade Chocolates are located just outside the Fusion room. The area also carries hundreds of one-of-a-kind home accent items in limited quantities.

“Fusion has become a destination for several interior decorators in town,”

Porterfield said. “We have a variety of unique pieces and rarely stock the same items twice. We always tell our customers if they want something, they should get it while they can because we’re always changing up our selection.”

The Lawn & Garden and Outdoor Living areas at Haynes Ace are complete with vibrant plants and flowers, patio furniture, grills, and other spring and summer staples. The store also sells Stihl- and Craftsman-brand outdoor power equipment.

“We have tropical plants that have just arrived and also have several varieties of seeds, vegetables, plants and flowers for your garden as well as mulch, dirt and fertilizer to help the garden grow,” Porterfield said.

In the Chef Shop, customers will find kitchen essentials such as pots and pans, ceramic cookware, utensils, and Keurig- and Kitchen Aid-brand small appliances.

“It makes us proud when people walk into our store, see our unconventional items, and say, ‘I never would have thought you sold that here.’”

The Haynes also own and operate Haynes Home Center in Morrilton, which has been open for 15 years.

“We strive to bring our customers in Morrilton and Conway the selection of a quality hardware store combined with small, hometown, helpful service,” Porterfield said. “When you come to our store, we’re going to have someone greet you at the door and offer you assistance anywhere in the store. “‘The helpful place’ is more than just a slogan; it’s what we live by.”

For the past five years, J.D. Power and Associates named Ace Hardware “Highest in Customer Satisfaction with Home Improvement Retail Stores.” The 85-year-old company operates more than 4,100 stores in all 50 states as well as stores in 60 countries around the world.

Haynes Ace Hardware, Inc. is open Monday through Saturday from 8 a.m. until 8 p.m. and on Sunday from noon until 5 p.m. To learn more about Haynes Ace, visit www.HaynesAce.com or call 501-327-2400.

Tech event aims to rally ‘Geek’ community A group of area technology professionals hope to assemble more than 200 like minded people for a one day event this June.

The event is BarCamp Conway. A BarCamp is described as a “participatory “un-conference” event, where the attendees are in charge of what happens.”

All attendees are given the opportunity to propose a breakout session topic that they would present.

The attendees then select what topics they want to hear about.

The result is an organic conference that instantly creates a tailor made agenda for everyone attending.

“Our goal with BCC is to foster growth of the tech/ entrepreneurship community in AR. We don’t want to make this another conference, or an event exclusive to just web designers or graphic designers,” said event organizer Drew Spurgers.

“Our hope is that anyone interested in design, promotion, business, and entrepreneurship will come to the event and leave with new energy and passion.”

In keeping with BarCamp tradition, the event is free.

This year the event will be held at the UCA Business Building on Saturday, June 2nd. In 2010, the inaugural event drew more than 100 participants. This year’s event has already pre-registered a similar amount. Spurgers thinks the success of the first event and the BarCamp movement nationwide will drive more participation. “BCC is beneficial for a number of reasons.

BarCamps are happening all over the country - the tech community is linked more and more because of social media and the ease of communication. BarCamp Conway is a great way for us to ‘rally the geeks’ and really ramp up the community in Central Arkansas. It’s a time to learn from and share with peers, make connections, and bounce ideas off each other.”

To register for the 2012 BarCamp Conway visit www.BarCampConway. com. The 2012 BarCamp is presented by the Conway Area Chamber of Commerce, UCA College of Business and ABC Financial.

Luke Irvin leads a breakout session at the 2010 BarCamp. BarCamp Conway is scheduled for June 2 at UCA.

Conway Chamber OFFERS Opportunity to Explore Spain

This fall, individuals and families are invited to explore Spain, experience its culture, and embark on a tour of two of Europe’s most beautiful cities.

The Conway Area Chamber of Commerce is hosting an eight-day getaway to Barcelona and Madrid Nov. 10-17, 2012.

Attendees will explore historic and modern sites, including Las Ramblas Boulevard and the Picasso Museum in Barcelona and the Prado Museum and Plaza de Espana in Madrid.

The Chamber is partnering with Collette Vacations, a family-owned business offering 150 programs to destinations on all seven continents.

“This is the second year that the Chamber has offered

6 | FAULKNER COUNTY BUSINESS JOURNAL

an all-inclusive, international travel opportunity to the public,” said Bart Shaw, vice president of operations. “Last year, 30 people traveled to China as part of our tour group, and this year we are excited to have 15 signed up already.”

For those who make their reservations before May 10, the cost of the trip is $2,899.

This price includes seven nights in double occupancy ho-

tel rooms, eight meals, roundtrip international airfare from Little Rock National Airport, air taxes and fees/surcharges of $150, and hotel transfers. The cost after the early bird deadline is $100 more.

To learn more about the Barcelona and Madrid Getaway or to download a reservation form, visit ColletteVacations. com/link/487553. The website also features an itinerary and a

promotional video.

A non-refundable deposit of $250 per person is due upon reservation. Space is limited, and reservations are made on a first come, first served basis.

The Conway Area Chamber of Commerce must receive final payment no later than Sept. 11, 2012.

For more information or to make reservations, contact Shaw at 501-932-5405.

Toad Suck Daze to Award $73K in Scholarships

For more than 30 years, the Toad Suck Daze Committee of the Conway Area Chamber of Commerce has held a fun, family-oriented festival on the streets of downtown Conway.

The food, entertainment and festivities are on display to more than 100,000 visitors over the three day festival.

However, what’s less visible is the real mission of Toad Suck Daze, supporting education in Faulkner County.

Since the Toad Suck Daze Community Service Scholar-

ship Program began, it has awarded $1.2 million to deserving students in Faulkner County. This year, the committee will contribute $74,500 toward scholarships and scholarship endowments: • Three scholarships in the amount of $3,000 to Central Baptist College; • Three scholarships in the amount of $3,000 to Hendrix College; • Three scholarships in the amount of $3,000 to the University of Central Arkansas; • Two scholarships in the amount of $1,500 to the Uni-

versity of Arkansas Community College at Morrilton; • Five scholarships in the amount of $3,000 for the Get Smart Scholarship Fund at the Community Foundation of Faulkner County; • $1,500 in scholarship money will be given to the Faulkner County Single Parent Scholarship Fund; and • An additional $27,000 will be added to the Toad Suck Daze Get Smart Scholarship Fund at the Community Foundation of Faulkner County.

Jerry Rye, 2012 Toad Suck Daze honorary co-chairman,

said that education has been the cornerstone of Conway and Faulkner County’s economy for a number of years.

“Conway’s economy and quality of life are built around education. This festival is here to help our young people get the most out of their potential,” Rye said. “I invite everyone to attend to make these scholarships possible.”

Mary Margaret Satterfield, director of events at Conway Area Chamber of Commerce, added that because education is the heart of Conway, it is fitting that proceeds raised at

the city’s largest annual event support this commitment to academic excellence.

“Money raised at Toad Suck Daze has helped more than 200 students attend local institutions of higher learning,” Satterfield said. “As the festival grows each year, so do the goals for the Toad Suck Daze Community Service Scholarship Program.”

Toad Suck Daze 2012 marks the 31th year of the festival, which will take place May 4 through May 6 in downtown Conway. For more information, visit ToadSuck.org.

What’s that gonna be?

The Plazza at Centerstone Phase II The second phase of the Plazza development, phase two is a two-story 22,000 square foot commercial structure. The Draft, a sports bar will be located on part of the bottom floor.

There is currently 5,600 ft available for lease on the bottom floor and 11,000+ available on the second. An outdoor courtyard with water feature is being added in this phase to welcome patrons to The Plazza.

When’s it gonna open?

Estimated completion is August of 2012.

Who’s building it? Salter Construction is the general contractor. The property will be managed

by Salter Properties.

Where is that? On Dave Ward Drive across from UCA (next to Pitza 42 and Peking Buffet).

FAULKNER COUNTY BUSINESS JOURNAL | 7