2013-07 Faulkner County Business Journal

JULY 2013

Park Hill Collection inspired by

‘The Good Ol’ Days’ Home accessories retail store sets up shop in Downtown Conway Park Hill Collection founders Charlie Groppetti and Todd Smith with son Leland Charles Smith.

2D — Sunday, July 14, 2013

Faulkner County Business Journal

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Sponsorships, booth space now available for 2013 Business Expo, Taste of Conway The Conway Area Chamber of Commerce invites area businesses to participate in the 2013 Business Expo. The event will take place Thursday, Oct. 10, at the Conway Expo Center and Fairgrounds. Southwestern Energy is the presenting sponsor.

Business Expo includes a breakfast, a business-to-business trade show and Taste of Conway. Mary Margaret Satterfield, director of events at the Conway Area Chamber of Commerce, said that this setup provides businesses with varied opportunities to network with other professionals and exhibit their products and services to a diverse and captive audience.

“The variety of events is what really sets it apart from other expos in the central Arkansas,” Satterfield said.

“First, the Business Expo Breakfast is attended

by more than 150 leaders from Conway’s business community. Second, the trade show provides more than 120 exhibitors with sales opportunities and business-to-business networking. Finally, Taste of Conway attracts

more than 500 potential customers to Business Expo.

“We anticipate more than 1,000 people will come to Business Expo throughout the day.”

Business Expo kicks off at 8 a.m. with the

Business Expo Breakfast, presented by Conway Corporation. The breakfast has been part of Business Expo for three years and traditionally has served as an occasion for the Conway Area Chamber of Com-

merce to announce substantial economic development and community initiatives. Since 2010, the chamber has unveiled the Conway2025 results, the Interstate 40 corridor design and the Lifelong Learners Pre-K initiative.

The Business Expo and Retail Showcase, a business-to-business trade show, begins at 9 a.m. and lasts until 3 p.m. Product demonstrations, business-to-business networking and the actual selling of products and services — all done on the Expo floor — can ultimately increase sales and sales leads for exhibitors, according to Satterfield.

Chick-fil-A will host a lunch presentation at this year’s Expo. Alan Kizer from Chick-fil-A will present a seminar on customer service. “Chickfil-A has become synonymous with outstanding customer service,” said

Satterfield. “We’re excited to have Alan share those best practices with our business community.”

Taste of Conway gives the community a chance to sample some of the best food Conway has to offer. The event takes place from 5-7:30 p.m. on the floor of Business Expo, giving food service providers the opportunity to get in front of more than 500 company representatives and community members. Restaurants, caterers, food and drink distributors and other food service providers that are members of the Chamber are eligible to participate in Taste of Conway at no cost.

Sponsorships and booth space are available for the 2013 Business Expo and Taste of Conway. Contact the Chamber at 501-327-7788 or visit ConwayArkansas. org to learn more about sponsorship and exhibition opportunities.

Online resource helps entrepreneurs start, grow a business Individuals seeking to open or grow their own business can take advantage of a onestop, online toolkit located on the Conway Area Chamber of Commerce’s website.

“Tools for Business Success” provides local, state, federal and online resources to guide entrepreneurs through all stages of business ownership. Business owners can ac-

cess the microsite at Conway.

ToolsForBusiness.info.

The microsite features links to one-on-one business counseling, lending programs, government and legal requirements, business disaster and recovery, green business practices, assistance with hiring and training employees and other howto information.

The site also includes re-

sources for specific industries and for women- and minorityowned businesses.

Tools for Business Success, LLC provides the service to chambers of commerce, economic development organizations and community organizations throughout the United States.

As a host for the Tools microsite, the Conway Area

Chamber of Commerce is better equipped to help local businesses succeed, according to Whitney Cummings, director of membership development.

“Tools for Business Success offers extensive information for local businesses at any stage,” Cummings said. “Whether a business is just starting out or taking the next step toward growth, business owners and

potential entrepreneurs can find the resources they need all in one place. We are pleased to offer this added benefit to our members and to the community as a whole.”

A quick tour and an online chat feature are available at Conway.ToolsForBusiness.info for business owners seeking additional information about the microsite.

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A setback

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nesses are licking their chops at the chance to hire pre-screened employees trained by a Fortune 20 company. Next week’s job fair organized by the Conway Chamber will hopefully speed up the occupational courtship for employer and applicant alike.

Everyone can benefit from a brief and honest assessment of the HP relationship moving forward. It’s important to remember the approximately 900 high-paying jobs still at the facility. There’s no reason to assume those jobs are at risk. The jobs lost were related to a struggling sector of HP’s vast tech interests. The remaining jobs are related to a key focus of the company’s future plans. There are many years left in this business relationship. It’s not beyond reason to think that those years could include growth from other parts of the HP company.

Economic changes are inevitable.

They are even necessary. Every community’s hope is that their gains outweigh their losses. When that doesn’t happen, there is sadness, anxiety and even anger. Thankfully, Conway’s history and initial response show that this most recent setback is something we will recover from.

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y now dust is settling on news surrounding the layoff of 500 HP employees at their Conway site. This has been a hot topic of conversation in most households around the city.

There are a number of reasons the news sparked such particular interest.

First is the scale of the layoff itself. Five hundred jobs is a significant number anywhere. The impact on payroll has been estimated by some at around $15 million. Second, layoffs are, thankfully, a rare event in Faulkner County’s economy.

For years, the good news has outnumbered the bad by a large margin. Finally, a number of Conway residents take special pride in successfully recruiting HP to Arkansas. Simply put, this one stings.

Our community’s primary and urgent focus should be on the 500 affected by the layoff. And that’s where the focus should remain until every one of them has an opportunity for equitable employment locally. There has been a ton of interest from area employers in hiring these too-soon-available, talented workers. Ours is still a rapidly growing economy and many busi-

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Top 5 residential home sales

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EDITORIAL

Sunday, July 14, 2013 — 3D

Faulkner County Business Journal

PRICE $485,000 $423,000 $355,000 $320,479 $313,500

ADDRESS 1125 Edinburgh 5345 Burnt Pine 395 Pippinpost 1925 Sanders 615 Fieldstone

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

SUBDIVISION Turnberry Pud Fairways at Centennial Pippinpost The Village at Hendrix Fieldstone

SQ. FT. 6,584 3,440 3,660 1,745 3,069

$/SQ. FT. $53.16 $124.97 $99.73 $173.64 $104.27

BUILT 1979 2013 1991 2012 2005

Chamber accepting nominations for MED awards The Conway Area Chamber of Commerce is accepting nominations for the 2013 Minority Enterprise Development awards.

These awards celebrate the achievements of minority entrepreneurs and the individuals and organizations committed to advancing minority business enterprise.

The Chamber of Commerce established the

MED committee to foster growth and sustainability of minority businesses and as a way to recognize minority businesses and their supporters.

The awards will be presented at the MED awards gala, which will take place Thursday, Sept. 12, at 6:30 p.m. in McCastlain Hall on the University of Central Arkansas campus. Darrin Williams, CEO of Southern Bancorp, will be the

keynote speaker.

There are five categories of MED awards: • Access to Capital award is presented to the individual, organization or business that has demonstrated outstanding leadership in the financial community by providing working or investment capital to minority businesses.

• Advocate for Opportunity award is presented to the individual,

organization or business that has demonstrated significant accomplishments in educating and advocating for minority business enterprises.

• Lifetime Achievement award is presented to the individual who has played an integral role in the creative, technical or professional progress of minority business development over the course of his or her life.

• Outstanding Minority Business of the Year award is presented to the business whose practices have had a significant impact on the community.

• Outstanding Young Minority Professional award is presented to an individual between the ages of 2139 who has committed themselves to business and community service.

The Chamber is ac-

cepting nominations for the awards now through Monday, July 29.

To submit nominations, visit ConwayChamber.org and click on the MED icon at the top of the page. For questions about the awards or the call for nominations, contact Whitney Cummings, director of membership development, at 501-932-5411 or at Whitney@ConwayArkansas.org.

4D — Sunday, July 14, 2013

Faulkner County Business Journal

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COVER STORY

Inspired by ‘The Good Ol’ Days’

A

Park Hill Collection sets up shop in downtown Conway

new retail store, Park Hill Home, is set to open late summer in Downtown Conway. The store and the associated Park Hill Collection take the name of the historic North Little Rock neighborhood, Park Hill. It was there where owners Todd Smith and Charlie Groppetti hatched the idea of starting their business six years ago.

Prior to moving to Conway, Park Hill Home was located on JFK Boulevard in North Little Rock. Earlier this year, Smith and Groppetti lost the lease at their original location and had to relocate their business.

After weeks of searching for a suitable location for their retail store, the owners chose Conway.

“Conway was a perfect fit for us. It wasn’t until we were in the process of moving that we realized how many good, loyal customers came to our store from this area,” Smith said. “Finding a building in the city’s historic downtown sealed the deal.” Renovations are currently under way on the Oak Street storefront. Park Hill Home will occupy 4,776 sq. ft. on two floors in the former Moll’s Café building, which was constructed at the turn of the 20th century. The space will retain the building’s original beadboard ceilings and plaster walls.

The Park Hill Home retail store is just one component of Smith and Groppetti’s enterprise; much of their business comes from wholesale.

“Having a retail store presence is a creative outlet for us,” Smith said. “It keeps us grounded.” The retail store mixes rustic, rural-found objects with reclaimed wood furniture and accessories from the Park Hill Collection.

Smith and Groppetti describe the Park Hill Collection as a gathering of objects that evoke happy memories of their childhoods. They supply their line of home furnishings, accessories and giftware to individual buyers and small retailers around the world. Park Hill Collection has showrooms located in the Atlanta, Dallas and Los Angeles markets that are open to the design trade only.

“Many of the items in our selection are exclusive, antique reproductions to help satisfy our nostalgic desire for ‘the way things used to be’ while being timeless for contemporary living,” Smith said.

Todd Smith and Charlie Groppetti both grew up in rural areas. Smith was raised in rural Arkansas and spent all his youthful summers on his grandparents’ farm in the northeastern part of the state. He recalls large vegetable gardens, Southern cooking with

his grandmother, and early morning trips to poultry auctions in his grandfather’s old farm truck. As a boy, Smith would build a variety of things using scrap lumber and a box of nails.

“My grandparents’ experiences during the great depression taught them not to waste anything and to be very self-sufficient. This made a big impression on me,” he said.

Charlie Groppetti was born and raised in rural California in the Central Valley. Although he and Smith grew up 1,800 miles away from

each other, their experiences were remarkably similar. Groppetti’s after-school and summer chores involved feed-

ing calves, picking sweet corn and learning to garden from his grandmother. “Farming was always a very practical business,

so a patch of bearded iris next to a water tank was considered by some to be a little self-indulgent of Grandma,” Groppetti recalls. “She was no-nonsense herself, but she had a soft spot for flowers. Her flower garden was an example that you could create beauty on arid farmland.”

These practical lessons of farming, childhood memories and a love for beautiful things are the inspiration behind the Park Hill Collection. To learn more about the Park Hill Collection and Park Hill Home, like their page on Facebook.

6D — Sunday, July 14, 2013

Faulkner County Business Journal

Conway Economy at a Glance Unemployment Rate May 2013 US . ........................ 7.6% Arkansas................. 7.3% Faulkner County ... 6.6% Conway................... 6.6% *Faulkner County & Conway not Seasonally Adjusted Sales Tax Collections Conway* March 2013............. $1,951,153 2012............. $1,950,077 Percent Change 0.1% Annual* 2012........... $22,944,163 2011........... $22,366,464 Percent Change 2.6% *Tax Rate 1.75% Faulkner County* March 2013................ $739,880 2012................ $734,063 Percent Change 0.8% Annual* 2012............. $8,465,686 2011............. $8,279,301 Percent Change 2.3% *Tax Rate 0.5% Restaurant Sales* April 2013........... $14,607,987 2012........... $13,898,807 Percent Change 5.1% Annual Sales 2012......... $153,412,988 2011......... $144,646,055 Percent Change 6.1% *Including mixed drink sales Hotel Sales April 2013............. $2,023,038 2012............. $1,839,259 Percent Change 10.0% Annual Sales 2012........... $18,683,676 2011........... $18,662,136 Percent Change 0.12% Conway Building Permits Single Family Homes Year to Date June

2013.............. 76 Permits 2012.............. 86 Permits Percent Change -11.6% Average Construction Cost* Year to Date June 2013................ $233,557 2012................ $205,683 Percent Change 13.6% Average Square Footage* Year to Date June 2013...................... 2,905 2012...................... 2,876 Percent Change 1.0% Average Construction Cost Per Square Ft.* Year to Date June 2013.................... $76.32 2012.................... $71.52 Percent Change 6.7% Annual 2012............ 186 Permits 2011............ 153 Permits Percent Change 21.6% Average Construction Cost* Annual 2012................ $207,537 2011............... $204,387 Percent Change 1.5%. *Not including land or lot improvements Average Square Footage* Annual 2012...................... 2,910 2011...................... 2,814 Percent Change 3.4% Average Construction Cost Per Square Ft.* Annual 2012.................... $71.33 2011.................... $72.64 Percent Change -1.8% * Total under roof Lottery Sales Faulkner County June 2013............. $1,133,860 2012............. $1,327,282 Percent Change -14.6% Year to Date (June) 2013............. $8,720,612

2012............. $9,259,776 Percent Change -5.8% Total State June 2013........... $32,160,991 2012........... $34,570,429 Percent Change -7.0% Year to Date June 2012......... $202,126,649 2011 ........ $212,024,259 Percent Change -4.7% Natural Gas Severance Tax Distribution May Conway 2013.................. $20,251 2012.................. $15,934 Percent Change 27.1% Faulkner County 2013.................. $16,442 2012.................. $12,947 Percent Change 27.0% Annual Conway 2012................ $162,457 2011................ $254,822 Percent Change -36.2% Faulkner County 2012................ $131,418 2011................ $204,052 Percent Change -35.6% Wellhead Price per MCF* Yearly Average 2012...................... $2.66 2011...................... $3.95 2010...................... $4.48 2009...................... $3.67 2008...................... $7.97 *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

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Conway apartments – A housing bubble?

By Roger Lewis

When the Big War (WWII) ended in 1945, residents of Conway lived in single-family houses, duplexes, boarding houses or an older house renovated into apartments.

Some simply rented a room in a house. No one lived in an apartment complex. Today, of course, the story is quite different.

Probably the first apartment complex in Conway was on Bruce Street near ASTC (now UCA). The two Lasley Apartment buildings were built just before 1950. The pace of apartment building picked up considerably after that. In 1950 Conway’s population was 8,610.

Recent years

In the most recent two and a half decades, almost half (47%) of residential construction was for multi-family units (apartment buildings, apartment complexes and duplexes). You might think that the market for multi-family units is saturated due to overbuilding. If a market is saturated, occupancy rates will be low. But an informal survey of several owners with a large number of rental units revealed that the occupancy rate in the fall months is 90-97%, rates that are quite high.

For the 23½ years, from January 1990 through June 2013, more than 7,500 apartment units were built. Multi-family complexes accounted for 6,583 units, and duplexes added 1,012 units, for a total of 7,595 units. During this same period 8,730 single-family homes were built. Thus, of the total 16,325 family units, 46.5% were multifamily units.

During the most recent 10 years, 4,304 multi-family units

were built. The boom year was 2005 when 1,034 units were constructed. Three other outstanding years were 2008, with 741 units, 2009, with 874 units, and 2010 with 726 units.

And what was the low year? In 2011, only 14 units were built.

All this construction helped meet the need for shelter for the many people who moved here: Conway’s population increased from 28,898 in 1990 to 43,447 in 2000 to 58,908 in 2010.

Rents

This large inventory of multifamily units has several effects. The competition works to lower rents, which is good for the renters but may prevent some owners from properly maintaining their property. Rents range from $350 per month, for a one bedroom, one bath unit, to $950 for three bedrooms, two baths and a twocar garage. The amount of rent for any configuration of bedrooms and baths varies with amenities. Some duplexes have two-car garages, while some multifamily complexes have swimming pools, fitness rooms, golf course privileges and washer and dryers. Of course, a bare-bone unit has virtually no amenities. This diversity of apartments accommodates the diversity of renters’ needs.

Renters are quite varied and include college students, young couples, single men and women and low-income families. For low-income families in Conway, one- or two-bedroom apartments can be found in the $350-500 range. Single people can rent a one- or two-bedroom unit in a secure area for around $500. Many young couples can find upscale accommodations with all of the amenities in the $600-800 range. For $900-1,000, a deluxe unit with

many amenities and even a garage can be had.

A National Comparison

ACCRA is a nonprofit research organization in Arlington, Va., that gathers data on rental rates. They report a monthly rent of $810 as the national average for a 950 sq. ft., two-bedroom, unfurnished apartment, excluding utilities. They list Conway’s rent for such an apartment as $542, which is about 67% of the national average.

A new business model

College students who live off campus occupy many rental units. A unique concept is emerging in Conway to meet this market. In this business model, four-bedroom apartment units are rented by the bedroom. Apartment complexes such as The Grove on Dave Ward Drive and the newly-constructed The Ledge on Donaghey Avenue utilize this concept. The Grove has some of its units available with this plan. The Ledge complex consists of 72 four-bedroom, fourbath units with approximately 1,450 square feet. A bedroom, a bath and a walk-in closet rent for $500 a month, including all utilities. The other three renters share the common areas of the kitchen, the dining area and the living room. If you want to choose your apartment mates, round up three companions, with each renting one bedroom. Of course, if a companion drops out, anyone can rent the newly-vacated space unless you secure a new roommate first.

Jonesboro: A cautionary tale

Jonesboro, Ark., is similar to Conway. It is a university town with a comparable popula-

LEWIS < 7D

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Sunday, July 14, 2013 — 7D

Faulkner County Business Journal

Chamber introduces new job bank website

By Elise Williams

The Conway Area Chamber of Commerce has created a website featuring a job bank of available jobs in Conway.

The Chamber launched the website in March, and in light of the city’s recent unemployment crisis, now hopes it will help to serve as a solution to the problem.

According to Whitney Cummings, director of membership development at the Conway Area Chamber of Commerce, the job bank will serve as a tool for both Conway employers and those seeking jobs.

“The Chamber’s job bank is another resource for job seekers to find employment and for our member businesses to recruit talented workers,” Cummings said.

The job bank allows business members of the Chamber of Commerce to post available job opportunities, while job seekers are free to search and to upload their resume.

Job postings are organized according to company name, position title, position type and

LEWIS from 6D tion (67,263 in 2010).

The city council in Jonesboro recently approved a six-month moratorium on the construction of new apartments.

Some of their apartment

posting date. Uploaded resumes are classified by name, educational level, position type and resume.

Resumes can only be accessed by Chamber members. To view submitted resumes or to submit jobs to the job bank, members will need their ID number and password.

Members may post jobs to the job bank at no charge.

Since the launch of the job bank, Cummings says that the website has “had a handful of employers and individuals taking advantage of the site.”

Cummings anticipates that number to grow in light of the recent HP layoffs.

“As a chamber, we want to do what we can to help these employees find opportunities locally.

“Likewise, we encourage our member businesses to use the site to find good, local workers.”

For more information about the job bank, call the Chamber 501-3277788 or visit the website at www.conwaychamber. org/jobbank. complexes have fallen into disrepair and are boarded up. Alderman Tim McCall said the city should consider incentives for developers to revamp these complexes in Jonesboro. Mayor Harold Perrin said

Sponsorships available for ninth annual Teacher Breakfast and Education Fair

By Elise Williams

The ninth annual Teacher Breakfast and Education Fair, presented by Conway Corporation and the Conway Area Chamber of Commerce, will take place Aug. 13 in the Conway High School Cafeteria, located at 2300 Prince St. The teacher fair represents more than 1,000 teachers and faculty from Conway Public Schools, Conway Christian Schools and St. Joseph Schools. The event lasts from 7-8:45 a.m. and will include a complimentary breakfast, this moratorium allows the city to study a way to balance multi-family housing and Jonesboro’s increasing growth rate each year.

Is Conway at this point that we need a moratorium? I don’t

prizes and booths set up by local businesses.

The teacher fair has moved to a new location and time this year.

According to the Conway Area Chamber of Commerce’s director of events, Mary Margaret Satterfield, the fair will take place on Tuesday instead of Friday and will be held in a larger space.

“The new Conway High School cafeteria is a more centralized location,” Satterfield said.

“We’re really excited about it.”

The fair is an opportunity for Conway business vendors to welcome

think so, because there are no boarded-up multifamily complexes that I know of, and the existing multi-family units have high occupancy rates.

There are a number of older duplex units that appear to be somewhat

Conway’s educators back to school and to offer educators tools for their classrooms while showcasing their products and services.

Registration to become an exhibitor or sponsor of the ninth annual teacher fair is still available until July 19.

Sponsorship levels include Platinum, Gold, Silver and booth space.

Businesses are encouraged to apply early, as space is limited.

Satterfield calls the fair a time for businesses to talk to teachers and welcome them back to school.

“It’s really a time for

rundown. This should be remedied by strong code enforcement and not with new legislation. As Conway grows, the demand for housing will continue. Multi-family units will be part of the landscape.

us to show appreciation for all that they do throughout the year,” she said.

The fair also serves as a great opportunity for teachers and staff to visit with their peers and to create a stronger bond throughout the city’s education community.

“It’s always been a really great event and everyone enjoys it,” Satterfield said. “We’re looking forward to another successful teacher fair.”

For more information about becoming a sponsor, contact Mary Margaret Satterfield at Mary@ ConwayArkansas.org or 501-932-5412.

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

You can obtain more information on the economy of Conway and Faulkner County by going to the Pulse of Conway website (www.pulseofconway. com).