2012-12 Faulkner County Business Journal

DECEMBER 2012

Make No Bones About It

Quality Orthopaedic Care Is Available Right Here in Conway full story, page 4

Revamped Ambassador Program seeks volunteers

T

he Conway Area Chamber of Commerce is revamping its ambassador program next year and plans to recruit 30 additional volunteers.

An interest meeting will take place Wednesday, Jan. 9, at 2 p.m. at the Chamber building, located at 900 Oak Street.

In previous years, ambassadors have served as volunteers for Chamber events, particularly ribbon-cuttings. Beginning in 2013, ambassadors will not only attend events but will also help with member retention.

Whitney Farris, director of membership development, said that ambassadors are highly visible, prestigious volunteers who serve as the Chamber’s primary liaison to Chamber members.

“This is a great way to get more involved in the community while also increasing visibility for your company,” Farris said.

“The position of an ambassador would be ideal for outgoing and energetic employees.”

The Chamber hopes to grow the ambassador program from 20-50 volunteers by next year.

Those interested in serving as an ambassador should contact Farris at Whitney@ConwayArkansas.org or 501-932-5411.

I

2012 – An all-around good year

t wasn’t until we sat down and looked at a year’s worth of notes that we realized what a productive year 2012 was in Conway. Conway in December of 2012 looks and operates better than it did in January. That doesn’t happen by accident. Here are just a handful of the things were especially proud of and thankful for.

PrivacyStar In August, a homegrown technology company, PrivacyStar, announced plans to add more than 100 jobs in the coming years. This is the type of company that could do business anywhere. To have them choose to grow in Conway is something to be grateful for.

Lifelong Learners/

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Chamber Pre-K initiative The Chamber of Commerce and Toad Suck Daze has raised well over a million dollars for college scholarships over the last 30 years.

In October, they announced a partnership with a local nonprofit, Lifelong Learners to add early childhood education to the mix. It’s a smart decision that will pay off.

Record Setting Toad Suck Daze On the subject of Toad Suck Daze, 2012 was a record setting year for the 31 year old festival. The Toad Suck Daze committee did great work. (absolutely picture perfect weather didn’t hurt)

City Bond Rededication In February, city voters overwhelmingly approved a rededication of city bonds. It wasn’t the most exciting public policy, but the end result is a

much more financially stable city government.

Chamber Accredidation In March, the Chamber of Commerce announced it had received a 4-star accreditation from the US Chamber of Commerce.

Out of more than 7,000 Chambers of Commerce in the United States, only 76 have reached the 4-star level. That’s pretty rare air.

Conway’s Public Buildings The Conway Regional expansion, the new high school and the new Carolyn Lewis Elementary would have individually stood out in any given year as banner construction projects. To have them all open in the same year is remarkable. Each one a first class facility meeting a critical public need.

Downtown Renovations 2012 may have quietly established itself as one of the most important years in downtown Conway’s decade-long revitalization. Federal Plaza at Main and Front Streets is a bustling facility. A postal branch, a new tech company and our daily paper all made the move there in 2012. By the way, the former newspaper facility has already been remodeled, repurposed and reused by a number of new downtown residents. Street improvements and other spruced up properties made 2012 a great year for downtown.

It’s been the case every year for as long as any reader can remember. Conway, Arkansas is a city that gets bigger and better every year.

It’s a great place to work and call home. Here’s to a great 2013. Merry Christmas and Happy New Year.

The event will take place Thursday, Jan. 10, from 11:30 a.m. until 1 p.m. at the Central Baptist College Dining Hall.

Choate joined Delta Dental of Arkansas as president and CEO in July 2000. Prior to leading the state’s largest dental insurance company, he worked for 20 years in the managed health care industry. Choate is the current chairman of the national Delta Dental board of directors. He also serves on the boards of Baptist Health, Renaissance Health Corporation and the Arkansas State Chamber of Commerce. In 2013, he will be president of the Greater Little Rock Chamber of Commerce’s Fifty for the Future organization and will serve on its executive committee. Choate and his wife, Marilyn, have lived in Conway for 26 years.

Delta Dental of Arkansas has provided its members access to dental benefits programs since 1982. Ninety percent of Arkansas dentists participate in the network, which is headquartered in Sherwood, Ark. CEO Luncheons are open to all employees of Chamber member businesses. Individual tickets are $25 per person. Reserved tables of eight are available for $200. For reservations, call 501-3277788 or email Anna@ConwayArkansas.org. The reservation deadline is Monday, Jan. 7.

Meadowlake Rd

Donaghey Ave

3920 Newcastle

64

Cadron Valley Country Club

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319

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Centennial Valley Golf Club

Donaghey Ave

Gatlin Park

Salem Rd

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d Choate, president and CEO of Delta Dental of Arkansas, will be the guest speaker at the Conway Area Chamber of Commerce’s upcoming CEO Luncheon.

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Lake Carol-dan

5145 Greystone

60

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Laurel Park

Ca

Conway Country Club

4805 Peterson Cove 60

Highway 60 W

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chamber luncheon features president/ CEO of Delta Dental

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TOP 5 RESIDENTIAL HOME SALES

Gold Lake Estates

University Of Central Arkansas

286

Dave Ward Dr

65 Canterberry Gap Lake Conway

1475 Gardenia St. PRICE $450,000 $365,000 $336,000 $295,000 $256,000

ADDRESS CITY 65 Canterberry Gap Conway 3920 Newcastle Conway 1475 Gardenia Conway 5145 Greystone Conway 4805 Peterson Cove Conway

BED/BA/HB 3/3/1 4/3/0 3/2/1 4/2/1 4/3/0

SUBDIVISION N/A Weatherstone South Wind PHII Fieldstone Chapel Creek

SQ. FT. 3,322 3,300 2,810 2,726 2,371

$/SQ. FT. $162.40 $114.85 $101.78 $115.55 $112.82

YEAR BUILT 2007 2008 2006 2005 2012

Convention and Visitors Bureau targets outlying shoppers around central Arkansas

A

s the holiday shopping season officially kicked off last month, tens of thousands of central Arkansas residents got a reminder in the mail of all Conway has to offer. Last month more than 40,000

households in Beebe, Cabot, Maumelle, Searcy and Russellville received a mailer highlighting Conway holiday shopping options.

Conway Chamber Director of Destination Marketing, Rachel Earls said that the Convention and Visitors Bureau wanted to

target “swing shoppers” who might be tempted to shop in other communities. “We chose these specific communities because they have a choice about where to do their shopping and we want them to think of Conway first.”

The bureau also included a special promotion that helped

the mail piece stand out in a crowded mailbox. The recipients were asked to describe what makes Conway their preferred shopping destination.

One lucky winner was promised a $1,000 Visa gift card to spend on their holiday shopping. Almost 300 responses came in listing endless reasons

to shop in Conway. “The comments are overwhelming,” said Earls. “We’re clearly becoming the primary shopping choice for some households as far as 40 miles away. Our goal was to remind people that Conway is a great place to shop and I think that was accomplished” said Earls.

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COVER STORY

Make No Bones About It Quality Orthopaedic Care Is Available Right Here in Conway with a number of community organizations, particularly those that encourage physical activity.

The clinic sponsors the Soaring Wings Ranch Ride, the Conway Kids Triathlon, the Conway Human Development Center Walk-a-Thon, the Conway Interfaith Clinic Golf Tournament and more.

From tendonitis relief to joint replacement surgery, Conway Orthopaedic & Sports Medicine Clinic has provided quality, compassionate orthopedic care to the Conway area for nearly 25 years.

The clinic’s eight physicians and its on-site occupational and physical therapists offer comprehensive orthopedic treatment and rehabilitation to patients of all ages.

Administrator Craig Turner said Conway Orthopaedic offers exceptional orthopedic care close to home. “There’s no reason to travel to Little Rock to receive quality, cutting-edge care,” he said. “You can get the same top-notch care right here in Conway without fighting traffic or worrying about parking.”

Services Offered Orthopedics is concerned with conditions that affect the musculoskeletal system, which gives humans the ability to move. This includes bones and connective tissue, such as muscles, ligaments, joints, tendons and cartilage.

The physicians at Conway Orthopaedic & Sports Medicine clinic diagnose and treat a wide range of orthopedic conditions and injuries: sprains and strains, fractures, tendonitis, bursitis, arthritis, trauma injuries, overuse injuries, and sports injuries.

Treatment options can be surgical or non-surgical.

Non-surgical care includes medications, casts, splints, on-site physical or occupational therapy, or specialized injections. If surgery is necessary, the physicians at Conway Orthopaedic & Sports Medicine Clinic can perform

a number of joint surgeries including arthroscopy of the knee, shoulder and wrist, rotator cuff repair, carpal tunnel surgery, knee ligament reconstruction, and fracture care, among others.

“Our doctors perform surgeries at Conway Regional Medical Center and Conway Outpatient Surgery Center, but also have consulting privileges at other area hospitals,” Turner said.

Conway Orthopaedic & Sports Medicine Clinic uses the latest technology to diagnose and treat orthopedic injuries or conditions. For example, the clinic is one of few orthopedic clinics in the state that uses the latest high-tech, digital X-ray equipment. Digital X-rays provide larger, clearer, colorenhanced images that yield a more accurate diagnosis.

In addition, the results are available in a fraction of the time.

“Our digital X-rays are sent electronically from the workstation to the PACS [picture archiving and communication system] and can then be retrieved by the physician,” Turner said. “What once took several minutes to process now takes only seconds. It’s

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more convenient for both the physicians and the patients.”

Conway Orthopaedic’s system of keeping patient records is another example of it being technologically advanced.

Teresa Perryman, front office supervisor, said the clinic went paperless in 2009. “We have fully-integrated electronic medical records in our office.

Our physicians use iPads to access patient records and to show X-ray images to patients.”

Conway Orthopaedic has 40 employees, including eight physicians. Seven of the doctors are board-certified or boardeligible orthopedic surgeons, and one is a podiatrist. Michelle Smith, human resources and accounting supervisor, said the clinic has grown right along with the city of Conway.

“We have an outstanding group of board-certified physicians, nurses and administrative professionals,” she said. “We added a new physician to our staff two years in a row – one in 2011 and one in 2012. Every physician who has come to work here since we opened in 1988 is still here.

They are all committed to and involved in the community.”

Conway Orthopaedic and its physicians are involved

About the Physicians Robert McCarron, M.D., a lifelong resident of Arkansas, founded Conway Orthopaedic & Sports Medicine Clinic in 1988, making him the first orthopedic surgeon in Faulkner County. McCarron completed his orthopedic residency in 1982 at Texas Tech University Health Sciences Center.

Tod Ghormley, M.D., is a general orthopedic surgeon who specializes in hip and knee replacements, sports medicine and arthroscopic joint surgery, and spinal injections. The Texas native completed his residency in orthopedic surgery at Texas Tech University Health Sciences Center in 1989.

Thomas Roberts, M.D., of New Orleans has a subspecialty certification in sports medicine.

He serves as team orthopedic surgeon for the University of Central Arkansas, Hendrix College and Central Baptist College as well as high schools in Faulkner County and neighboring counties. Roberts completed his orthopedic surgery residency at the University of Arkansas for Medical Sciences.

Benjamin Dodge, M.D., completed his residency in orthopedic surgery at the University of Arkansas. A native of Arkansas, Dodge received training from Dr. Carl Nelson, the state’s premier leader in the augmentation and development of hip and knee replacement

surgery.

Scott Smith, M.D., completed his residency in orthopedic surgery in 2003 at the University of Tennessee Campbell Clinic in Memphis. Smith, a native of Arkansas, is a fellow of the American Academy of Orthopaedic Surgeons and an officer in the Arkansas Orthopaedic Society.

James Howell, M.D., specializes in hand and upper extremity orthopedic surgery.

Howell has provided on-site coverage for many sporting events, including minor-league hockey, college basketball, and high school and college football. Howell grew up in Fort Smith, Ark., and completed his residency in 2010 at Hamot Medical Center in Erie, Pa. Grant Bennett, M.D., is a general orthopedic surgeon. His professional interests include the prevention and treatment of sports-related injuries, and he is involved with the athletic programs of various local high schools and colleges. Bennett, a native of Arkansas, completed a residency in orthopedic surgery in 2011 at the Greenville Hospital System University Medical Center in South Carolina.

Glenn McClendon, DPM, completed his residency in foot and ankle surgery at Coral Gables Hospital in South Florida. As a doctor of podiatric medicine, McClendon has experience in the diagnosis, treatment and prevention of foot and ankle disorders – from fractures and ankle sprains to diabetic foot and wound care.

To learn more about Conway Orthopaedic & Sports Medicine Clinic or to schedule an appointment, visit their new, interactive website at www.

ConwayOrtho.com or call 501329-1510.

Grimes Named CFO of the Year

L

aura Grimes, chief financial officer for the Conway Area Chamber of Commerce and the Conway Development Corporation, has been recognized as one of the state’s top CFOs.

Grimes was named Nonprofit CFO of the Year at the 2012 Arkansas Business CFO of the Year Awards. Arkansas Business established the annual CFO awards to honor the “unsung heroes” of organizations – the men and women responsible for “recording what has happened and for predicting what will happen with a company’s financial performance.”

The awards recognized professionals in the following categories: small private company CFO, large private company CFO, nonprofit organization CFO, small bank CFO, large bank CFO, lifetime achievement award in accounting, and CFO lifetime achievement award.

Grimes began working part-time for the Conway Development Corporation and the Conway Area Chamber of Commerce in 2008. One of the reasons she was hired was to manage the finances for the construction and completion of

the $30 million Hewlett-Packard building.

“Managing the building process and the continued financial operations of a multi-million dollar project was a large task and not something I had ever done during the 10 years I worked in public and private accounting,” Grimes said.

“It was a two-year building process, and the project was completed on time and under budget.”

Recognizing the need for a C-level financial executive, the Conway Development Corporation and the Conway Area Chamber of Commerce created in 2010 a full-time CFO position for Grimes. She now oversees the financials for those organizations as well as Conway Downtown Partnership, Conway Foundation Inc., Conway Publications Inc. and Conway Committee of 100.

Brad Lacy, president and CEO of the Conway Area Chamber of Commerce and Conway Development Corporation, said Grimes’ award is well deserved.

“This award could not have been given to a more deserving, hard-working individual,” he said. “Laura embodies the characteristics of an outstanding CFO – professionalism, intelligence, leadership and integrity, to name a few. We are proud of her and are honored to have her on our team.”

CONWAY AREA CHAMBER OF COMMERCE launches NEW mobile-friendly website

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s the number of individuals using Web-enabled mobile devices continues to increase, so has the demand for mobile-friendly websites. The Conway Area Chamber of Commerce has optimized its website for smartphones, tablets and other mobile devices to provide users with a better mobile Web experience.

WebLink Mobile, a fully integrated mobile Web application available to

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chambers of commerce and other associations, powers the Chamber’s mobile website. The application updates in real-time and features the Conway Area Chamber’s signature green color and logo.

To access the mobile-friendly website, go to ConwayChamber.org using the Internet browser available on any Webenabled mobile device.

Through WebLink Mobile, users can find and contact the Conway Area Chamber’s 1,500 members, view Chamber and community events, read the latest news from the Chamber, and access coupons and special offers from

member businesses.

For users who bookmark the site, an icon depicting the Chamber logo will be available on the home screens of their smartphones or tablets.

WebLink Mobile is compatible across all devices, does not require a download or installation, and has no associated costs.

Chamber members also have the opportunity to display banner ads on the mobile website.

For information about online advertising opportunities, contact senior vice president Jamie Gates at 501-932-5401 or Jamie@ConwayArkansas.org.

Conway Economy at a Glance Unemployment Rate October 2012 US ...............................7.9% Arkansas.......................7.2% Faulkner County ......... 6.1% Conway.........................6.0% *Faulkner County & Conway not Seasonally Adjusted Sales Tax Collections Conway* September 2012................... $1,929,990 2011................... $1,883,866 Percent Change 2.4% Year to Date (Sept.)

2012................. $17,076,332 2011................. $16,350,320 Percent Change 4.4% Annual* 2011................. $22,366,464 2010................. $21,868,102 Percent Change 2.3% *Tax Rate 1.75% Faulkner County* September 2012...................... $706,588 2011...................... $712,808 Percent Change (-0.9%) Year to Date (Sept.)

2012................... $6,357,870 2011................... $6,063,888 Percent Change 4.8% Annual* 2011................... $8,279,301 2010................... $7,834,226 Percent Change 5.7% *Tax Rate 0.5% Restaurant Sales* October 2012................. $13,191,728 2011................. $12,989,159 Percent Change 1.6% Year to Date (Oct.) 2012............... $134,846,472 2011............... $125,527,847 Percent Change 7.4% Annual Sales 2011............... $151,462,797 2010............... $139,864,203 Percent Change 8.3% *Includes mixed drink sales Hotel Sales October 2012................... $1,484,283 2011................... $1,726,453 Percent Change (-14.0%) Year to Date (Oct.) 2012................. $16,320,289 2011................. $16,084,702 Percent Change 1.5% Annual Sales 2011................. $18,662,136 2010 ............... $17,590,242 Percent Change 6.1%

Conway Building Permits Single Family Homes Permits Issued January — November 2012.................. 159 permits 2011.................. 131 permits 2010..................213 Permits Percent Change 2011-12 21.4% Annual 2011..................153 Permits 2010 ................ 223 Permits Percent Change (-31.4%) Average Construction Cost* Year to Date (Nov.) 2012...................... $206,932 2011..................... $204,387 2010...................... $179,218 Percent Change 2011-12 1.2% *Not including land or lot improvements Average Square Footage* Year to Date (Nov.) 2012............................ 2,910 2011............................ 2,873 2010............................ 2,684 Percent Change 2011-12 6.0% * Total under roof Lottery Sales Faulkner County October 2012................... $1,250,054 2011................... $1,366,360 Percent Change (-8.5%) January — November 2012................. $14,033,686 2011................. $14,011,104 Percent Change 2011-12 0.2% Annual 2011................. $16,788,678 2010................. $17,540,450 Percent Change (-4.3%) Total State October 2012................. $33,691,499 2011................. $38,132,383 2012................. $36,716,063 Percent Change 2011-12 (-11.6%) January-October 2012............... $379,085,841 2011............... $399,667,763 2010............... $384,652,799 Percent Change 2011-12 (-5.1%) Annual 2011 .............. $474,879,701 2010............... $459,916,256 Percent Change 3.3%

Natural Gas Severance Tax Distribution November Faulkner County 2012........................ $12,651 2011.......................... 19,038 Percent Change (-33.5%) Conway 2012........................ $15,635 2011........................ $23,666 Percent Change (-33.9%) Year to Date (Jan.-November) Faulkner County 2012...................... $117,584 2011...................... $167,639 Percent Change (-29.9%) Conway 2012...................... $145,360 2011...................... $209,528 Percent Change (-30.6%) Annual Faulkner County 2011...................... $204,052 2010...................... $171,543 Percent Change 19.0% Conway 2011...................... $254,822 2010...................... $221,225 Percent Change (-15.2%) Wellhead Price per MCF* September 2012 ........................... $2.71 2011 ........................... $3.82 2010 ........................... $3.83 2009............................ $2.98 2008............................ $6.81 2007............................ $5.30 Yearly Average 2011 ......................... $3.95.

2010 ......................... $4.48.

2009 ......................... $3.67 2008.......................... $7.97 2007.......................... $6.25 2006 ......................... $6.39 2005 ......................... $7.33 2004 ......................... $5.46 2003 ......................... $4.88 2002 ......................... $2.95 *MCF=1000 cubic feet Number of Active Wells* Faulkner County............. 350 Total in Field . ............. 4,481 *As of December 12, 2012 Estimated Life Time Value of Production* Total Field.. $11,382,327,198 *As of September 30, 2012.

Information provided by pulseofconway.com

BANKING IN FAULKNER COUNTY

By Roger Lewis

Without banks a modern economy, either local or national, cannot operate. Today, Faulkner County is awash with banks. Sixteen different banking institutions maintain 62 offices with $1.6 billion in deposits. But at two times in the past, Faulkner County had no banks.

Our first bank was the Bank of Conway chartered in 1890, almost 20 years after Conway was established. The Faulkner County Bank opened in 1902 and in 1912 Farmers State Bank was established. All three institutions were in Conway. Business was good until the great depression in the 1930s when all three banks failed. First to close was the Faulkner County Bank (1930), then the Farmers State Bank (1931) and finally the Bank of Conway (1933). For six months Conway and Faulkner County were without a bank.

In July 1933 Harvey Couch, Jr. established the First National Bank based on capital from stock bought by local residents who also established accounts. The bank acquired the Farmers State Bank building at 1000 Front Street (now occupied by First Security Bank). In 1946 Tom Wilson and W. D. Ketcherside founded First State Bank and Trust, again selling shares to local residents who also became customers.

First State Bank operated from a storefront building on Front Street until they constructed a building at the corner of Front and Oak (now occupied by Conway City Hall). In 1962 Security Savings and Loan was founded by a group of local businessmen. These three institutions in Conway served all of Faulkner County without any branch offices until the mid 1980s.

(Central Arkansas Savings and Loan opened in 1976 and closed in 1988 because of financial difficulties.)

According to the Federal Deposit Insurance Corporation (FDIC) website, “Throughout most of the 20th century, local banks in the United States have been protected from both interstate and intrastate competition. Since the late 1920s, state legislatures have held most of

the cards, in effect determining whether a bank could establish subsidiaries and branches, even if it had a national charter. That’s because current federal laws governing expansion powers for state and national banks have a “states’ rights” bent to them, generally allowing states to preempt federal laws by passing more or less restrictive legislation.”

As one example of “states rights”, Arkansas laws restricted banks to the one county in which they were chartered. When that law changed in 1983, banks could be acquired or merged with banks in other counties.

As a result all three of Faulkner County’s institutions were each sold several times. First National Bank became today’s Regions Bank, First State Bank morphed into the Bank of America, and Security Savings and Loan was acquired by U.S. Bank. One important player in today’s market (First Security Bank) began as First Community Bank when it was chartered in Faulkner County in 1991.

In 1998 the laws changed again, permitting banks to have branches in other counties without being chartered in those counties. This led to a proliferation of banking institutions in Faulkner County and across Arkansas as well. All banks in Faulkner County today are the result of mergers and acquisitions or are branches of banks chartered elsewhere or are banks purchased in other coun-

ties with their charters moved to Faulkner County.

The $1.6 billion in deposits today are 70 percent greater than deposits 10 years ago and 200 percent greater than deposits 20 years earlier. The accompanying table shows deposits and market share for the 16 banking institutions in Faulkner County. Three banks, Centennial, First Security Bank, and Regions Bank have 71% of the market. The remaining 13 banks share 29% of the market.

Profitability of banks is measured not by amount of deposits but by return on assets (ROA). The benchmark for bank profitability is one percent ROA. Data on ROA is available for an institution but not for individual offices. As seen in the table, First Security Bank is the most profitable bank in Faulkner County with an ROA of 2.6%. Both First Arkansas Bank and Trust and Bank of the Ozarks have ROAs exceeding two percent.

Not surprisingly, Conway remains the banking center for Faulkner County. Of the 62 offices in the county, 46 are in Conway. $1.3 billion (80 percent) of the county’s deposits are in those 46 offices.

You can obtain more information on the economy of Conway and Faulkner County 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.

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