2013-01 Faulkner County Business Journal

JANUARY 2013

EXECUTIVE OFFICE SUITES Those doing business in the Conway area will soon have access to the latest in work environment innovation: fully furnished offices, a receptionist, and the latest business technology in one low monthly lease.

ARCHITECTURAL ILLUSTRATION

New Merchants Make Their Way Downtown

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owntown Conway continues to see steady enhancement as new and relocating businesses make their way to the heart of the city.

In addition, more living space and the increased availability of commercial property contribute to the area’s vibrancy. Kim Williams, executive director of the Conway Downtown Partnership, outlined some of the newest downtown merchants.

• Gospel Concepts, a

Christian bookstore, opened its doors at 1010 Oak Street in late November.

• A Wedding Palooza and Events, a wedding planning service, will open at 1030 Front Street later this month.

• Toadly Nutrition health and nutrition club will open in January at 1028 Front Street.

• Apple Tree is a gift and home décor store that will open Jan. 21 in the Mountebanq Place building at 1107 Oak Street.

• Pazzaz Interiors will open in late January or early February at 913 Oak Street.

The retailer will offer creative

furnishings, decorative accents and design services.

• Haute Maroon Boutique, a women’s apparel store, opened Dec. 8 in the former Pizzaz location.

• Baskets by Margaret will be located at 1127 Front Street. The business will allow customers to create gift baskets and have them delivered.

With the addition of new residential properties, downtown Conway is becoming more than just a place of business. A renovated apartment complex called 1406 Place opened its doors in late October 2012 and is located on the corner of

Caldwell and Locust Streets.

The apartment complex has only three of its one- or twobedroom apartments remaining for lease, according to Williams.

“The popularity of 1406 Place proves that more citizens crave to live in an urban setting that offers amenities they only have to walk out their front door to enjoy,” Williams said. “More than 40 shops and restaurants are located within in a four-block radius from Toad Suck Square.” Williams added that The Village at Hendrix, Conway’s residential historic district and the soon-

to-be renovated site of the Conway municipal airport will help link other parts of the city with downtown.

“The days of the driving to the suburbs, opening your garage and safely tucking yourself away are over,” Williams said. “For those who want to live in a walkable neighborhood where they work, shop, dine and play, downtown Conway is the place for them.”

To stay informed about the latest news and events happening downtown, visit the Conway Downtown Partnership’s website at DowntownConway.org.

Acxiom CEO featured guest at Chamber Annual Meeting

S

cott Howe, president and CEO of Acxiom Corporation, will be the featured guest at the Conway Area Chamber of Commerce’s Annual Meeting. The event is scheduled for Thursday, March 14, at 6:30 p.m. and will take place at the University of Central Arkansas’ HPER Center.

A marketing and advertising veteran, Howe has extensive experience in digital media and technology. He was a corporate vice president of Microsoft Advertising Business Group prior to being named Acxiom’s top executive in July 2011.

Another highlight of Annual Meeting is an award presentation honoring individuals and businesses that have made a difference in Conway over the past year. “Annual Meeting is a chance for us to take time to appreciate the individuals and businesses that make Conway an even better place to live,” said Bart Shaw, vice president at the Conway Area Chamber of Commerce. “Our city continues to flourish in large part because of them.”

The Conway Area Chamber of Commerce is now accepting nominations for the following awards: 2 | FAULKNER COUNTY BUSINESS JOURNAL

The Distinguished Service Award is the Chamber’s highest form of recognition. Established in 1957, this award is presented annually to an individual or group that has rendered special service for the benefit of the community. Candidates have demonstrated an active leadership role for the betterment of the community through their involvement in one or more business, civic and social service organizations.

Established in 1973, the Good Neighbor Award is presented annually to an individual who has given of his or her time and talents. Candidates shall exemplify outstanding public service to the Conway area and a willingness to help others.

The Business of the Year Award recognizes businesses for their continued growth, innovation and community involvement. It is the premier honor to the best overall business in Conway and is presented in five categories based on industry and number of employees.

The Business Executive of the Year Award recognizes the owner, executive or president of a business who has displayed outstanding performance in either an individual or collaborative endeavor. The nominee is a driving force behind the company and works to maintain an enriched business climate and an enhanced quality of life in Conway.

The Young Business Leader Award recognizes a community business

leader, age 40 or younger, who has helped create a more vibrant business and social environment for all of Conway’s residents.

The Minority Enterprise Development Lifetime Achievement Award and the Women in Business Diamond Achievement Award recipients from 2012 will be recognized at Annual Meeting.

To nominate an individual or business for an award, visit http://bit.ly/ AnnualMtg2013. The deadline to submit nominations is Friday, Jan. 25.

For more information about Annual Meeting, including tickets and sponsorships, email Bart Shaw at Bart@ConwayArkansas.org or call 501932-5405.

64

TOP 5 RESIDENTIAL HOME SALES

Meadowlake Rd

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Cadron Valley Country Club

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5215 BAY TOWN Gatlin Park

Hendrix College

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Oak St

Conway Laurel Park

540 Paddington

266

Conway Country Club

Caldwell St

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1820 COLLEGE AVE.

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Central Baptist College

Highway 60 W

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335 WELLESLEY S Salem Rd

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University Of Central Arkansas

286

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Dave Ward Dr

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PRICE $440,000 $405,000 $355,000 $325,000 $295,000

ADDRESS 540 Paddington 5215 Bay Town 1820 College Avenue 3 Evergreen 335 Wellesley

CITY Conway Conway Conway Conway Conway

BED/BA/HB 4/3/1 4/4/0 3/2/2 5/4/0 5/3/1

SUBDIVISION Paddington Centennial Fairways Robinson Plan Shady Valley Wellington

SQ. FT. 4,176 3,775 4,300 4,081 3,316

$/SQ. FT. $106.80 $113.88 $92.79 $79.64 $93.18

YEAR BUILT 2004 2005 1949 1987 2004

Local Tech Conference Anticipates Growth

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group of area technology professionals hope to assemble more than 300 like minded people for a one day event this February.

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

happens.” Attendees have the opportunity to propose a breakout session topics to present.

All conference attendees then select what topics they want to see presented. The result is a conference with an instantly tailored agenda.

“Our goal with BarCamp Conway is to grow and connect the tech and entrepreneurship community in Arkansas.

This event isn’t exclusive to

just web designers or graphic designers,” said event organizer Drew Spurgers. “Our hope is that anyone interested in design, promotion, business, entrepreneurship or technology will attend 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, February 23rd. In

2010, the inaugural event drew more than 100 participants.

The 2012 effort drew more than 200 attendees. Spurgers thinks that hosting the event during the school year could cause 300 or more people to attend in 2013.

“This event has been an unqualified success from day one,” said Jamie Gates, Senior Vice President of the Conway Area Chamber of Commerce.

“Events like BarCamp are part of having a satisfied modern workforce. They are the “glue” that holds our local creative economy together.”

To register for the 2013 BarCamp Conway visit www.

BarCampConway.com.

The 2013 BarCamp is presented by the Conway Area Chamber of Commerce, UCA College of Business and ABC Financial.

FAULKNER COUNTY BUSINESS JOURNAL | 3

COVER STORY

WELCOME TO THE HIVE

EXECUTIVE OFFICE SUITES ARE A WORK eNVIRONMENT INNOVATION

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oe’s accounting practice is growing, and she is seeking office space. She cannot, however, afford to hire another employee to help with answering the phone, handling mail, and other small tasks.

She also has a strict monthly budget. Surprise utility, phone, Internet, and other bills can hurt cash flow.

Larry’s consulting job keeps him on the road. His schedule doesn’t justify renting an office he will rarely use. He does still need a reliable business address for correspondence and state-of-the-art conference rooms for client meetings.

Curly manages major accounts at his international firm. A few of his company’s account reps periodically meet with VIP customers in Conway.

Using hotel rooms and empty offices for meetings increases cost, lowers effectiveness, and projects the wrong image.

Curly needs a professional office and meeting rooms 2-3 days a month in Conway.

The Hive: Executive Office Suites is the solution for Moe, Larry, and Curly. Those doing business in the Conway area will soon have access to the latest in work environment innovation: fully furnished offices, a receptionist, and the latest business technology in one low monthly lease.

The Hive will be located in The Meadows Office and Technology Park. Construction 4 | FAULKNER COUNTY BUSINESS JOURNAL

will begin next month and should be completed by August 2013.

The owners of Conwaybased CAT2, which provides software and services to the global food industry, conceptualized the complex a decade ago. While seeking a location for their growing business, they discovered a shortage of high-tech office space in Conway.

“Conway was the perfect environment for our business’s global headquarters, but our workspace options at the time were limited to dated ‘strip mall’ office complexes that did not project the professional image we needed for our international brand. Constructing our own facilities was the only other option, which was costly and risky,” said Mike Sardinha, CAT2 CEO. “It quickly became obvious to us that there was an unanswered demand for high-end office space in central Arkansas for businesses that need to project a Fortune 500 image and use the latest business technology, but without requiring large investments or long-term commitments.”

The Hive business plan

was finalized in early 2012, and their vision became a reality. Mark Wilson, marketing director for The Hive, said the innovative concept redefines the modern office.

“The Hive combines the quality of traditional, high-end executive office suites with solid business technology,” Wilson said. “Every office space at The Hive – from virtual offices to full-time offices – comes with all the services and amenities a business needs to maximize efficiency.”

The Hive offers three leasing packages: full-time private offices, part-time offices, and virtual offices. All-inclusive services and amenities remove the traditional sting of conventional office space leasing, furnishing, and staffing.

Leasing Packages Full-time, private executive offices are ideal for small business or satellite offices.

The monthly lease of a standard executive suite begins at $950 and includes a fully furnished and decorated office suite, utilities, janitorial services, a unique phone number with personalized

reception, high-speed internet, mail and packaging handling, and other services and amenities.

“The full-time offices provide everything a small business or Fortune 500 satellite office needs to look its best and work efficiently,” Wilson said.

“Business owners and other professionals will spend less money renting space, while still receiving extraordinary luxuries with their low-cost lease.”

For $85/day, part-time offices are available for professionals who need access to a fullservice office in Conway a few days a week or month. Wilson said professionals “time share” an office and do not have to worry with coordinating with the other tenants or managing the schedule.

“This package includes the benefits of a full-time office except you have the ability to schedule and pay for a fully furnished office only when needed,” he said.

“A professional receptionist answers all your calls during business hours, and you can still use meeting rooms 24/7.

Virtual offices are available to professionals seeking the business services, meeting

facilities, and corporate image of an office without the expense of a physical location.

Like the full and part-time offices, the virtual office comes with a professional receptionist who answers your company’s unique phone number using your company name. Virtual offices also receive the custom business email domain and Web address with this leasing option.

“The Hive virtual office is our most universal solution,” Wilson said. “This option is ideal for professionals and entrepreneurs who have outgrown their home office or have a side business gaining momentum.” Virtual offices begin at $75/month.

Business Services In addition to leasing options, The Hive offers other business services. High-tech private meeting rooms and executivestyle conference rooms are available to groups of up to 15 people. An on-site remote learning facility will seat more than 50 for training. The Hive will also offer corporate identity packages that include brand development, logo design, custom websites, business cards, and letterhead.

To learn more about the leasing packages, services, and amenities available at The Hive: Executive Office Suites, visit ConwayHive.com.

Special Offer for Business Journal Readers The Conway Area Chamber of Commerce and The Hive have teamed up to provide a special offer for readers of the Faulkner Business Journal.

Visit ConwayHive.com/ Chamber to enter a drawing for a free, six-month, virtual office package.

Toad Suck Daze seeking scholarship applicants

T

oad Suck Daze is four months away, but it’s already time to start preparing if you’re a high school senior who hopes to receive a Toad Suck Daze Community Service Scholarship.

Once again, Toad Suck Daze will award college scholarships to a select group of Faulkner County students who display a strong academic record and a commitment to community service.

Over the last 30 years, Toad Suck Daze has raised more

than $1.3 million in scholarships, grants and endowments to benefit Faulkner County students, colleges and organizations. This year the festival will award approximately 20 scholarships ranging from $1,000-$3,000. “Most people recognize Toad Suck Daze as a unique festival because of the name,” said Mary Margaret Satterfield, Director of Events at the Conway Area Chamber of Commerce. “But what really makes Toad Suck Daze special is its mission—funding education.”

To qualify, the applicants must be a graduate of a Faulkner County high school

or currently enrolled at CBC, Hendrix, UCA or UACCM having graduated from a Faulkner County high school and applying for the 2013 fall term. Applicants must also complete 20 hours of community service to a Faulkner County non-profit organization.

The deadline for applications is March 8th, 2013. Applications are available online at ToadSuck.org, at the financial aid offices of participating colleges or from the counselors at all Faulkner County high schools. For more information contact Mary Margaret Satterfield at 501.932.5412 or Mary@ConwayArkansas.org.

Conway to host GLOBAL LEADERSHIP simulcast

What’s that gonna be?

Bob Nabholz Unit of the Boys and Girls Club of Faulkner County The new Boys and Girls Club facility is scheduled to open later this month. The 15,000 square foot facility is approximately twice the size of the current Prairie Street location. The Bob Nabholz Unit of the Boys and Girls Club serves more than 100 youth daily in their current location. The new facility will have a gymnasium, computer lab, teen room, and many other amenities to host expanded programming.

Where is that? The corner of Robins Street and South German Lane. (at Conway Station Park) Who’s building it? Nabholz Construction is the general contractor on the project.

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In May, residents of Conway and Faulkner County will have the opportunity to hear from high-profile figures in sports, entertainment, government and business.

The event is the Chick-fil-A Leadercast, and the Conway Area Chamber of Commerce is hosting a broadcast of the oneday leadership development program. The Conway Leadercast will take place Friday, May 10, at Fellowship Bible Church from 8 a.m. until 4 p.m.

Whitney Farris, director of membership development at the Chamber, said the event is a chance to gain 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 and ideas,” she said.

“The diversity of speakers, the setting and the materials all add up to a fun and beneficial day

of personal and professional development.”

Speakers during the oneday event include Jack Welch, former chairman and CEO of GE; former Secretary of State Condoleezza Rice; leadership and management expert John Maxwell; and many more.

Leadercast is broadcast live from Atlanta. More than 140,000 participants from around the world are expected to attend or watch a broadcast of this year’s event. The conference began in 2000, and this is the second year the Chamber has hosted a broadcast.

Seating is limited, so advance registration is recommended. The early bird registration price is $65 and includes materials and lunch. After March 1, registration is $75.

For information or to register, contact Whitney Farris at Whitney@ConwayArkansas.org or 501-327-7788.

Conway Economy at a Glance Unemployment Rate November 2012 US . ......................7.7% Arkansas...............7.0% Faulkner County . 6.0% Conway.................5.8% *Faulkner County & Conway not Seasonally Adjusted Sales Tax Collections Conway* October 2012...........$1,849,793 2011...........$1,852,556 Percent Change -0.15% Year to Date (Oct.) 2012.........$18,926,125 2011.........$18,202,876 Percent Change 4.0% Annual* 2011.........$22,366,464 2010.........$21,868,102 Percent Change 2.3% *Tax Rate 1.75% Faulkner County* October 2012..............$684,433 2011..............$707,747 Percent Change -3.3% Year to Date (Oct.) 2012...........$7,039,303 2011...........$6,769,635 Percent Change 4.0% Annual* 2011...........$8,279,301 2010...........$7,834,226 Percent Change 5.7% *Tax Rate 0.5% Restaurant Sales* November 2012.........$12,879,211 2011.........$12,532,357 Percent Change 2.8% Year to Date (Nov.) 2012.......$148,012,538 2011.......$138,262,298 Percent Change 7.1% Annual Sales 2011.......$151,462,797 2010.......$139,864,203 Percent Change 8.3% *Includes mixed drink sales Hotel Sales November 2012...........$1,207,482 2011...........$1,392,556

Percent Change -13.3% Year to Date (Oct.) 2012.........$17,527,772 2011.........$17,477,258 Percent Change 0.3% Annual Sales 2011.........$18,662,136 2010 ....... $17,590,242 Percent Change 6.1% Conway Building Permits Single Family Homes Annual 2012..........186 Permits 2011..........153 Permits 2010 ........ 223 Permits Percent Change 201211 21.6% Average Construction Cost* Annual 2012..............$207,537 2011............. $204,387 2010..............$182,340 Percent Change 2011 -12 1.5%. *Not including land or lot improvements Average Square Footage* Year to Date (Nov.) 2012....................2,910 2011....................2,814 2010....................2,722 Percent Change 201112 3.4% *Total under roof Lottery Sales Faulkner County December 2012...........$1,279,084 2011...........$1,441,342 2010...........$1,350,681 Percent Change 201112 -11.3% Annual 2012.........$18,393,242 2011.........$16,788,678 2010.........$17,540,450 Percent Change 201112 9.6% Total State December 2012.........$33,691,499 2011.........$39,180,699 2010.........$39,762,737 Percent Change 2011-

2012 -14.0% Annual 2012 ......$452,245,217 2011 ......$474,879,701 2010.......$459,916,256 Percent Change 20112012 -4.8% Natural Gas Severance Tax Distribution January Faulkner County 2013................$14,395 2012..................13,599 Percent Change 5.9% Conway 2013................$17,789 2012................$16,844 Percent Change 5.6% Annual Faulkner County 2012..............$131,418 2011..............$204,052 Percent Change -35.6% Wellhead Price per MCF* October 2012 ...................$3.03 2011 ...................$3.62 2010 ...................$4.05 2009....................$3.83 2008....................$5.64 2007....................$5.78 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

Home Construction: The Little Engine that is Recovering

By Roger Lewis

In the same way a new-built factory boosts the nearby economy for as long as the factory operates, a new-built house has a similar effect. A house or apartment continues to affect the economy for the life of the unit, perhaps as long as 100 years.

The National Home Builders Association (NHBA) says that for every home constructed, three full-time workers are added to our economy. About half of this economic boost is due to the actual building — the construction workers.

In second place is manufacturing (think lumber mills, refrigerators, air conditioning systems, light switches, and paint). The rest is produced by real estate agents and the legal, finance, and insurance industries.

Just building a house or apartment and getting it sold or rented does not end its contribution to the economy. Over its life, sometimes as long as a century, utilities and insurance are purchased, appliances replaced, furnishings bought, and maintenance performed. In addition, calculations by the NHBA show that the average homebuyer stays in a home for 13 years.

So every 13 years the house produces real estate commissions,

Table 1 shows statistics for single-family home construction in Conway for the most recent five years.

Construction cost per square foot increased modestly.

(The low was $67.87 in 2009 and the high was $72.63 in 2011.) Average square footage is trending upward over the past four years.

Table 2 shows a comparison of residential and commercial construction for the same five-year period. Commercial construction includes all construction except residential, such as industrial and institutional. Although home construction was depressed during these years, commercial construction was not. Its value went from $58.9 million to $97.7 million, an increase of 66 %, a figure not likely to be repeated. These five years include very large projects such as the new Conway High School, Hewlett Packard, the Southwest Energy buildings, and large additions at Conway Regional Health Systems and the Kimberly Clark plant. (UCA construction is not included in these figures because it is a state agency, exempt from obtaining building permits.)

closing costs and all the fix-up expenses that go with a house sale. The money spent on a house over its lifetime dwarfs the original cost.

In summary, home construction is an economic engine. Happily, Conway’s home construction industry improved significantly in 2012. Building permits were granted

for 186 family units and 144 multifamily units (apartments).

These 330 units are a 100% increase over 2011 during which 153 single units and 14 multifamily units were constructed (a total of 165). Although a 100% increase seems spectacular, the comparison year of 2011 was the worst year for construction in

20 years. Also, 2012 pales in comparison with some past years.

A total of 1522 units were constructed in 2005; in 2010 the number was 949. The all-time high for singlefamily units was 645 in 2003. Thus, the home construction engine seems to have topped the hill but its speed is not yet where it was earlier.

Nationwide, residential construction is essential to a growing economy. In 2012 it accounted for 2.7 % of the Gross Domestic Product (GDP). Unfortunately, for years prior to 2010 this figure was about 5 or 6 percent. The combination of utilities, insurance, housing services, maintenance, and so forth accounts for a 12 % contribution to the economy.

For the national economy to return to its pre-recession level, home construction must increase to 5 % or more of GDP. For that to happen, the foreclosure mess has to be cleaned up.

Fortunately, that is not a problem in Conway, but it is nationally.

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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