4 | FAULKNER COUNTY BUSINESS JOURNAL

TOP 5 RESIDENTIAL hOmE SALES

PRICE ADDRESS CITY BED/BATH SUBDIVISION SQ. FT. $/SQ. FT. YEAR BUILT

$286,000 3715 Whiskey Chute 5 3 Weatherstone 2,854 $108.58 2006

$284,000 4810 Trinity Crossing 5 3 Chapel Creek 2,460 $117.89 2012

$252,500 4830 Dover Lane 4 3 Nottingham 2,378 $109.29 2004

$242,900 210 Chapel Creek 4 2 Chapel Creek 2,240 $109.33 2011

$225,000 145 Merlot 4 3 Chapel Creek 2,012 $116.75 2011

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Gatlin Park

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Cadron Valley Country Club

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AveMeadowlake Rd

Highway 60 W

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Prince St

Old Morrilton Hwy

Dave Ward Dr

60

319

25

286

60

60

60

286

286

286

64

64

40

40

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Conway

4830 Dover Lane

145 Merlot

210 Chapel Creek

4810 Trinity Crossing

3715 Whiskey Chute

A predictionn EDITORIAL

Sometimes it’s scary to put yourself out on a limb and make predictions. But given some recent trends, a little statistical information and a lot of speculation we feel good about this one. 2012 will be a banner year for Conway’s economy.

First, the trends: Here at the Cham-ber, our phones are ringing. Existing businesses are talking expansion. New businesses are considering lo-cating. Companies are hiring. Much of it is on a small scale. But that’s a good thing. The prospect of ten businesses hiring ten employees is more encour-aging than the hope of one business hiring a hundred. Consider us very surprised if we don’t see measurable job growth in Faulkner County this year.

Second, the statistics: It’s early in the year, but we’ve already witnessed some important numbers come in. Last month, the city received a final accounting of December’s sales tax collections. They were up a whopping 8.5% over the previous December. To put that in context, it was the highest single month of sales in Conway’s history. Hotel and restaurant revenues are continuing to grow at an even faster rate. It could be the overall economy, some savvy local market-ing, a number of big projects going on or just luck. But we hope and think that it will continue through the year.

Finally, some speculation: We think it will be difficult for our local economy to recede when there are so many major projects going on. More than $100 million in I40 expansion, another $100 million in construction at our schools and hospital, a $90 million Conway Corp sewer project and another $30 million at the new airport. That’s some pretty serious money flying around in one county. Also im-portant is that all of the projects listed above are investments in our com-munity. They make us more attractive to the private sector and they make Conway a better place to live.

To summarize, we are obviously bullish on Conway and Faulkner County. That’s always been the case. But 2012 will stand out as an impor-tant and fruitful year in our city’s his-tory. It should be fun to watch.

BRAD LACYPResiDent AnD CeO

COnwAY AReA ChAmBeR Of COmmeRCe

ANNUAL MEETINGApproximately 900 business and com-munity leaders braved the rain to attend the Conway Area Chamber of Com-merce’s 2012 Annual Meeting at the University of Central Arkansas’ HPER Center. The special guest was Mr. Madison Murphy, the current chairman of the Arkansas Highway and Trans-portation Department. Another focus of the night was recognizing outstanding businesses, organizations and individu-als that contribute to Faulkner County’s economic success. Award winners in a number of business and civic categories were announced. Annual meeting at-tendees were also the first to hear about some of the exciting things planned for 2012, including the Explore Spain trip in November and Toad Suck Daze entertainment.

FAULKNER COUNTY BUSINESS JOURNAL | 3

Unemployment RateDecember 2011

US ....................................8.3%Arkansas ...........................7.7%Faulkner County ............. 7.1%Conway .............................6.1%

Sales Tax CollectionsConway- Annual*

2011......................$22,366,4642010......................$21,868,102Percent Change 2.3%*Tax Rate 1.75%

Faulkner -Annual*2011........................$8,279,3012010........................$7,834,226 Percent Change 5.7%*Tax Rate 0.5%

Restaurant Sales*January Sales

2011......................$12,008,8692010......................$11,204,870 Percent Change 7.2%

Annual Sales 2011....................$151,462,7972010....................$139,864,203Percent Change 8.3%*Includes mixed drink sales

Hotel SalesJanuary Sales

2011........................$1,332,4252010........................$1,125,722Percent Change 18.4%

Annual Sales2011......................$18,662,1362010 .................... $17,590,242Percent Change 6.1%

Conway Building PermitsSingle Family Homes

January-February2012......................... 21 permits2011......................... 17 permitsPercent Change 23.5%

Total for the Year2011.......................153 Permits2010 ..................... 223 PermitsPercent Change (31.4%)Average Construction Cost*

Annual2011.......................... $204,3872010...........................$182,340Percent Change 12.1%*Not including land or lot improvements

Average Square Footage*Annual

2011.................................2,8142010.................................2,722Percent Change 3.4%*Total under roof

Lottery SalesFaulkner County

February2012........................$1,776,5072011........................$1,414,816Percent Change 23.6%

Annual2011......................$16,768,687

Total StateJanuary

2012......................$35,720,4032011......................$39,663,372Percent Change (9.9%)

Annual2011 ...................$484,879,7012010....................$459,916,256Percent Change 5.4%

Natural GasSeverance Tax Distribution

March 2012Faulkner County ..........$20,533Conway ........................$25,375

AnnualFaulkner County

2011...........................$204,0522010...........................$171,543Percent Change 18.9%

Conway2011...........................$254,8222010...........................$221,225Percent Change 15.2%

Wellhead Price per MCF*March

2012 ................................$2.132011 ................................$3.902010 ................................$4.362009.................................$3.722008.................................$8.292007.................................$6.56

Yearly Average2011 ......................... $3.952010 ......................... $4.16 2009 ......................... $3.712008.......................... $8.072007.......................... $6.372006 ......................... $6.402005 ......................... $7.332004 ......................... $5.462003 ......................... $4.882002 ......................... $2.95*MCF=1000 cubic feet

Number of Active Wells*Faulkner County .................301Total in Field ...................3,901*As of January 12, 2011

Estimated Life TimeValue of Production*

Total Field ......$11,382,327,198*As of November 31, 2011

Information provided by pulseofconway.com

Conway Economyat a Glance BY ROGER LEWIS

Faulkner County’s annual retail sales hit an all time high in 2011 at $1.7 billion. The best month - also an all time high - was Decem-ber with $170 million. These fig-ures are estimated from sales tax collections and may understate actual sales because the sales tax on automobiles is applied to only the first $2500 of a sale.

Conway sales accounted for 77% of the Faulkner County retail market at $1.3 billion for the year. Decem-ber sales in Conway were $135 million is 79%of the total, a slightly higher market share.

Conway has not been sub-stantially affected by the national recession. A relatively low unem-ployment rate of 6.1% and aver-age annual earnings of $37,000 for workers bolster sales. In 2009 sales declined somewhat but began to recover in 2010 and then made substantial gains in 2011.

I have lived in Conway for 39 years and have witnessed its growth from a small community of 16,000 with limited shopping and dining choices into a suburban area with essentially one of everything. Going to Little Rock on Saturday evening in the 70’s and 80’s was a ritual.

Now shopping, dining, entertain-ment and hospitality amenities make Conway the trade center for north central Arkansas. Many Conway businesses advertise in Maumelle and consider it part of Conway’s trade area. A vibrant downtown area, the Conway Com-mons and the Conway Towne Cen-ter offer shoppers a wide variety of choices.

The new Cinemark Town Theater draws from a wide area making Conway rather than Little Rock a destination. These trips often include shopping and dinner. Area residents find little need to go to Little Rock for many amenities.

In Conway 23 hotels, one bed and breakfast, and 196 places that sell prepared food make Conway an attractive tourist destination.

“Tourist” in the broadest sense of the term includes overnight stays while traveling, doing business in the area or visiting.

According to the Arkansas De-partment of Tourism and Travel, more than 357,000 visitor trips were made to Faulkner County in 2011. A visitor trip is defined as one person traveling 100 miles or more one way and/or spending one night away from the point of origin. The estimate is that these visitors spent more than $81 million in 2011.

Conway’s and Faulkner County’s population have more than doubled in the last twenty years. It will continue to grow and most likely add many more shopping venues. Conway’s demographics are very enticing to developers.

The table illustrates retail sales in six Faulkner County municipali-ties and nontax areas. Note that the next largest retail area outside of Conway, 12.7% of sales, is in the nontax area. This area includes four small incorporated communi-ties that do not have a local sales tax, Enola, Guy, Holland, and Wooster and unincorporated areas. The unincorporated areas are ar-eas such as between Conway and Vilonia and between Conway and Greenbrier. Also note that annual

retail sales in Conway total more than $1 billion.

Sales tax collection reports are always two months in the arrears. Merchants collect sales taxes, including the local sales tax, during one month and forward them to the state the following month.

The State Department of Finance and Administration take another month to assemble data, distribute collections back to the communities and report the data. Thus the com-plete data for 2011 is not available until March 2012.

Several adjustments must be made to estimate actual sales from sales tax collection data. Merchants keep two percent of the taxes they collect as payment for collecting the tax and the Department of Finance and Administration keep approxi-mately 3% of the tax for administra-tion.

You can obtain more information on Sales Tax Collections 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.

More information on building permits and real estate sales can be found at Pulse of Conway website. pulseofconway.com.

retAil SAleS reAch neW highFaulkner County RetailCity ........................................ Annual Sales ............................ % of Total

Conway .......................................... $1,303,645,330 .............................................77.2

Greenbrier ..................................... $83,215,017 ......................................................4.9

Mayflower ..................................... $40,062,489 ......................................................2.4

Vilonia ............................................. $43,784,642 ......................................................2.6

Guy .................................................. $3,319,386 .........................................................0.2

Twin Groves .................................. $832,524 ............................................................0.0

Nontax areas ................................ $169,972,202 .................................................12.7

Total Faulkner County ............ $1,688,977,404 ....................................100.0

4 | FAULKNER COUNTY BUSINESS JOURNAL

What do the new Conway High School-West classroom building, UCA’s Bear Hall, and CBC’s new academic building have in common? Think teal.

First Security Bancorp is helping finance the construc-tion of each of these major projects. The privately held financial services holding com-pany is based in Searcy, Ark., and consists of 69 community-banking centers across the state. It also owns several affiliate organizations, including Little Rock-based investment banking firm Crews & Associ-ates.

“First Security has a unique position in Conway because of our relationship with Crews & Associates,” said John Adams, president and CEO of First Security Bank in Conway. “We have the ability to provide banking and public financing services to an entire commu-nity, giving us one of the most diverse product offerings of any financial services holding company based in Arkansas.”

Crews & Associates was founded in 1979 and has been a wholly owned, non-bank affiliate of First Security Bancorp since 2000. This past year, Thomson Reuters ranked Crews & Associates among the leaders in several catego-ries related to municipal bond transactions in the United States.

Tony Henderson, account executive and local investment banker for Crews & Associ-ates in Conway, said that First Security’s strong community banking presence has helped grow its public finance side.

“As a full-service invest-ment banking firm, Crews & Associates is able to serve institutional customers as well as individuals,” Henderson said. “Traditionally, businesses and consumers would have to turn to large, national firms for

their investment needs. With our presence, we are seeing clients who bank with First Se-curity take advantage of a local firm that is able to provide the same financial services that larger firms do.”

Between First Security Bank and Crews & Associates, First Security Bancorp is financing several major construction projects for Conway’s educa-tional institutions. John Adams said that this goes back to First Security’s philosophy of invest-ing in Arkansas.

“While some banks are look-ing to expand outside of the state and to move their assets elsewhere, we opt to keep our focus here to fund local projects,” Adams said. “Within the state, all 69 locations and all seven markets are uniquely focused on the communities they serve.”

Crews & Associates issued Conway Public Schools a combined $44 million bond for the construction of the new Conway High School-West classroom building and Carolyn Lewis Elementary. Public reports indicate that First Security Bank provided a total of approximately $9 million to Central Baptist Col-

lege for financing, including its new academic building. At the University of Central Arkansas, Crews & Associates is under-writing the $10 million bond for a five-story residence hall and skyboxes overlooking First Security Field at Estes Sta-dium. In addition, First Security Bank issued a $5.5 million loan for a new weight room facility at UCA.

“Banks do well when their communities do well,” Adams said. “There are many factors that contribute to a growing economy, but the financing piece needs to be there, too. If that’s not in place, it can stifle progress.”

First Security’s Conway market has approximately 26,000 personal and business customers and more than $620 million in assets. At the end of 2011, First Security Bancorp recorded more than $4 billion in assets and $520 million in total capital. Adams said

that because of its locations throughout Arkansas, First Se-curity Bancorp has the strength of a statewide presence and the capital to help it meet most financial needs facing Arkan-sas businesses, institutions and individuals.

“We provide business loans and commercial lending and are absolutely eager to help people finance small business-es,” Adams said. “For consum-ers, we offer mortgage finance and are proud to have been the largest mortgage recorder in Faulkner County for more than 10 years. Our bank has a long history of home finance.”

Although First Security’s financing operations happen largely behind the scenes, the bank’s signature teal can be seen at community events throughout Conway and across the state. Perhaps the most well-known examples of the bank’s community involvement in Faulkner County are the

First Security Conway Kids’ Triathlon and the traveling Teal Grill.

The Conway Kids’ Triathlon takes place each August and is one of the nation’s premier youth triathlons. Proceeds from the event benefit Children’s Advocacy Alliance. The Teal Grill can be spotted cooking hamburgers and hot dogs at community events across the state.

“Our goal is to be a commu-nity-focused bank, whether it’s financing major projects that benefit the people who live and work here or showing our sup-port at special events.

“Our investment in the community does not stop with buildings and money; it’s not only the things that look good on the books that make us proud,” Adams said. “It is helping our customers and the communities we serve be all they can be with the help of what we can provide.”

FirSt Security BAnk, creWS & ASSociAteS: inveSting in A groWing FAulkner county

Tony Henderson is an account executive and local investment banker for Crews & Associates in Conway. His office is lo-cated in First Security’s historic downtown banking center.

Lenders for the First Security Conway market are (back row, from left) J.B. Mobley, vice president; Mark Lollar, senior vice president; John Adams, president and CEO; Jon Ross Henderson, vice presi-dent; Mike Baldwin, executive vice president; Sandra Hayes, vice president; George Baker, senior vice president; and Shawn Rea, vice president.

6 | FAULKNER COUNTY BUSINESS JOURNAL

The Pointe at Conway will host the Conway Area Chamber of Commerce’s quarterly Business After Hours networking event on Monday, April 9, from 5-6:30 p.m. The apartment com-munity is located at 2010 RichSmith Lane in Conway.

In addition to its one-, two- and three-bedroom apartments, The Pointe offers furnished corporate suites for business travelers or those seeking temporary housing. Established as a cost-effective alterna-tive to a lengthy hotel stay, the corporate suites are available to guests with extended accommodation requirements for 30 days or longer.

Business After Hours al-lows members to strength-en professional relation-ships and develop new opportunities to work with fellow Chamber members. The event is free to Cham-ber members and their employees. Complimentary hors d’oeuvres and drinks will be provided.

For more information about Business After Hours, call the Chamber 501-327-7788.

BuSineSS AFter hourS At the pointe

The Row Houses will demonstrate a new meaning of upscale apartment living. In The Village, with 18 total apartments of one and two bedrooms. The apartments include granite countertops, stainless steel appliances, and hardwood or stained concrete floors. The two bedrooms will exemplify a modern townhome style and the one bedrooms will follow an upscale modern floor plan. For leasing information email Alison@SalterProperties.com

Who is building it? Salter Construction is the general contractor. Salter Properties will handle leasing.

Where is that? On Harkrider in the Hendrix Village.

When is it gonna open? The Row Houses are scheduled to be complete by Aug. 1.

The Row Houses at Hendrix Village

The Conway Area Cham-ber of Commerce will host a Small Business Lunch & Learn on Tuesday, March 20, from 11:30 a.m. until 1 p.m.

Metropolitan National Bank and Arkansas Custom Capitol Corporation will explain the Small Business Association (SBA) 504 Loan program.

SBA 504 Loans are benefi-

cial for small businesses that are looking to expand or for individuals who hope to start a new business.

The SBA 504 Loan can per-manently finance the purchase of machinery, furniture, fix-tures and other project-related soft costs.

It can also be used to finance the purchase of real estate or the construction or renovation of a building.

SBA is the largest, non-disaster financial assistance program that allows for a 75 percent guarantee for true-amortizing loans between $15,000 and $5 million. Loans less than $150,000 receive an 85 percent guarantee.

Scott Todd, vice president and marketing manager for Metropolitan National Bank in Conway, said that this program is an example of the

bank’s “Nearby & Neighborly” philosophy.

“Metropolitan National Bank is committed to helping small business owners realize their dreams through innovative products and services like the SBA 504 Loan program,” Todd said.

More information about the SBA 504 Loan program will be available at the Small Business Lunch & Learn. The

session is sponsored by Met-ropolitan National Bank and will take place at the Conway Chamber building located at 900 Oak Street.

To register for the Small Business Lunch & Learn, visit the Upcoming Events section at ConwayArkCC.org. Seat-ing is limited to the first 40 participants. The registration deadline is Monday, March 19, at noon.

lunch & leArn to explore loAn optionS For AreA SmAll BuSineSSeS

What’s that gonna be?

FAULKNER COUNTY BUSINESS JOURNAL | 7

FirSt orion/privAcy StAr to SpeAk At luncheon

The U.S. Chamber of Commerce awarded Conway Area Chamber of Commerce with 4-Star Accreditation for its sound policies, effective organizational procedures and positive impact on the com-munity.

Accreditation is one of the highest honors bestowed on chambers that support pro-growth and economic policies at the federal, state and local levels. In addition,

Accreditation is the only na-tional program that recognizes chambers for their effective organizational procedures and community involvement.

In order to receive Accredi-tation, a chamber must meet minimum standards in their operations and programs, including areas of governance, government affairs, technol-ogy, program development and communication. This extensive self-review took the Conway Area Chamber of Commerce twelve months to complete.

“We are excited to receive

national recognition on behalf of our 1,250 investors. We are now one of 76 chambers in the United States to achieve 4-star status. It was important for us to go through this process. Very few chambers subject themselves to this level of scrutiny and objective review. We are a better organiza-tion for having gone through the process,” said Brad Lacy, president and CEO.

The U.S. Chamber of Com-merce rates local chambers as Accredited, 3-Stars, 4-Stars or 5-Stars. Of the nearly 7,000

chambers in the United States, only 221 are Accredited. These chambers represent the top 3 percent of all chambers in the nation.

The Conway Area Cham-ber of Commerce is only the fourth chamber in Arkansas to achieve this designation. The other Accredited chambers are the Jonesboro Regional Cham-ber of Commerce (4-Stars), the Rogers-Lowell Area Chamber of Commerce (5-Stars) and the Searcy Chamber of Commerce (Accredited).

The U.S. Chamber of Com-

merce is the world’s largest business federation represent-ing the interests of more than 3 million businesses of all sizes, sectors and regions, as well as state and local chambers and industry associations.

The mission of the Conway Area Chamber of Commerce is to lead the community toward sustainable economic growth, to advocate for a pro-business climate for its members, to build upon Conway’s edu-cational foundations, and to establish and execute the com-munity’s vision.

conWAy AreA chAmBer oF commerce receiveS 4-StAr AccreditAtion

Jeff Stalnaker, CEO and President of Conway-based technology com-pany First Orion Corporation, will be the guest speaker at the Conway Area Chamber of Commerce’s upcoming CEO Luncheon. The event will take place Tuesday, March 27, from 11:30 a.m. until 1 p.m. at the Student Life and Technology Center on the cam-pus of Hendrix College.

First Orion Corporation is a leading provider of call management, privacy and preference services to the telecom-munications industry. The company allows consumers complete control of their wired, wireline or Voice-over Inter-net Protocol (VOIP) telephones.

First Orion Corporation is the creator of PrivacyStar, a smartphone applica-tion for Android and BlackBerry. With more than 13 features, PrivacyStar en-ables consumers to block all unwanted calls and text messages. Users can also

file with the Federal Trade Commission complaints related to telemarketing calls and debt collection calls. PrivacyStar users have blocked more than 120 million numbers and filed more than 150,000 complaints directly to the FTC. At the CEO Luncheon, Stalnaker will discuss starting a technology company in a challenging economic climate. He will also provide an overview of the mobile ecosystem and privacy concerns related to mobile devices.

“Mobile is you – where you are, when

you want it, and what you want. Our goal is for our customers to not have to sacrifice privacy for convenience when it comes to their smartphones,” Stal-naker said.

CEO Luncheons are open to all employees of Chamber member busi-nesses. Individual tickets are $25 per person. Reserved tables of eight are available for $200. For reservations, call 501-327-7788 or email GetSmart@ConwayArkansas.org. The reservation deadline is Wednesday, March 21.

conWAy to Serve AS hoSt Site For chick-Fil-A leAdercASt

On May 4th, 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 LEAD-ERCAST and the Conway Chamber is hosting a broadcast of the one-day leadership development program.

Conway Chamber of Commerce Vice President of Membership Ser-vices Lindsay Wygal says that the event is a unique opportunity to get insight into the leadership habits of some of the country’s highest achiev-

ing personalities. “I think any aspiring leader who attends will leave with new skills or ideas. The diversity of speakers, the setting and the materi-als all add up to a fun and beneficial day of personal development.”

The local Chick-Fil-A LEADER-CAST is sponsored by Conway Cop-ies, 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. For more information and to register for the event, visit www.Conwa-yArkCC.org and click on LEADER-CAST under upcoming events.

CONWAY PARKS/REC 2012 BOOKED TOURNAMENTSEVENT ........................................................................ FACILITY ..................................................... DATESMarch of 2012Fatchmo Volleyball Tournament ..........................................Conway Sports Center ..................................... March 12CASM Sports Baseball Tournament ....................................Conway Station Park .......................................March 2-4CASM Sports Baseball Tournament ....................................Conway Station Park .................................... March 9-11CBC Invitational ..........................................................................City of Colleges Park..................................... March 9-10Alpha Phi Alpha Charity Basketball Tournament ...........Conway Sports Center ..................................... March 12CASM Sports Baseball Tournament ....................................Conway Station Park ..................................March 23-25April of 2012CASM Sports Baseball Tournament ....................................Conway Station Park .....................................April 13-15CASM Sports Baseball Tournament ....................................Conway Station Park .....................................April 27-29May of 2012CBC MCAC Conference Tournament ..................................City of Colleges Park............................................May 3-5CASM Sports Baseball Tournament ....................................Conway Station Park ......................................May 11-13CASM Sports Baseball Tournament ....................................Conway Station Park ......................................May 18-20June of 2012CASM Sports Baseball Tournament ....................................Conway Station Park ..........................................June 1-3Homeschool Basketball Camp ..............................................McGee Center .......................................................June 4-6CASM Sports Baseball Tournament ....................................Conway Station Park ....................................... June 9-10CASM Sports Baseball Tournament ....................................City of Colleges/Conway Station ..............June 15-17CASM Sports Baseball Tournament ....................................Conway Station Park .....................................June 22-24Midwest Sports Production ...................................................City of Colleges Park......................................June 27-28Conway Christian Baseball .....................................................Conway Station Park .....................................June 27-28September of 2012CASM Sports Baseball Tournament ....................................Conway Station Park ......................................... Sept. 1-3