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Arkansas Industry Leaders Say Temporary Workers in Short Supply

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The RAISE Act that U.S. Sen. Tom Cotton introduced in February would slash permanent legal immigration, but it doesn’t address at all the immigration issue that may be most pressing back home in Arkansas: temporary workers.

“So much of the need in Arkansas is temporary labor, especially in the ag and timber sectors,” said Randy Zook, CEO of the Arkansas State Chamber of Commerce/Associated Industries of Arkansas. “Without temporary immigrant labor, there wouldn’t have been a pine tree planted in Arkansas in the past 30 years.”

Guest worker visas — H-2A for agriculture workers and H-2B for non-agriculture, including timber — are in such short supply that crops requiring labor-intensive harvesting sometimes rot in the fields. “It’s gotten that critical. It’s gotten that dumb,” Zook said.

Max Braswell, executive vice president of the Arkansas Forestry Association, said his members — private owners of timberland who employ tree-planters during the first quarter of the year — would welcome a change in the law that would streamline the process for returning workers.

These temporary jobs are not attractive to citizens, Braswell said.

“Our history shows that it’s difficult to find people who want to do that kind of work. It’s labor-intensive, it’s tough and it’s transitory, so to speak,” he said. “There’s an impression that if the jobs were available, American workers would just line up for them. But that has not been the case.”


Help Wanted: Cotton Immigration Measure Can Be Improved, Zook Says

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U.S. Sen. Tom Cotton’s bill to change the country’s immigration priorities contains a feature that Randy Zook loves and Patrick Gallaher hates:

It would dramatically reduce the number of immigrants admitted because they are related to a U.S. citizen or legal resident without regard for the contribution they can make when they get here.

But while it would slash the immigration categories known collectively as “family reunification,” Cotton’s bill would not do the main thing that Zook, CEO of the Arkansas State Chamber of Commerce/Associated Industries of Arkansas, says businesses are crying out for: increase the number of skilled workers available to fill gaps in the workforce.

“We’re still laboring in the vineyard, trying to get some rationality up there,” Zook said, employing language from the 20th chapter of the Gospel of Matthew. “You know, Tom Cotton has taken a sort of 90-degree angle on us, but I think he’s teachable.”

Meanwhile, Gallaher, executive director of Catholic Charities of Arkansas, points to a different chapter in the same gospel — Matthew 25, in which Jesus called on his disciples to take in strangers — to decry any attempt to make the United States less welcoming.

The lesson Zook wants Cotton to absorb is that Arkansas needs more, not fewer, immigrant workers.

“I know there’s plenty of room to improve that bill and to better inform them about the magnitude of the need out here for competent, skilled, trainable labor that we simply don’t have an adequate supply of in many communities,” he said.

That would be a fundamental change in philosophy from the bill that Cotton introduced in February with Sen. David Purdue, R-Ga. Nicknamed RAISE — Reforming American Immigration for Strong Employment — the proposal would dramatically reduce the number of permanent legal immigrants immediately and permanently.

Instead of roughly 1 million immigrants per year in a country of more than 320 million, RAISE would reduce the number to less than 650,000 in its first year and barely 500,000 by its 10th year.

It would do that by limiting family reunification visas to the spouses and minor children of legal residents — no more preference for aging parents, married children or siblings — and by placing a hard cap on refugees at a time when those applications are on the rise. It would also eliminate a controversial lottery that has sought to inject more diversity of national origin through sheer luck of the draw.

Since introducing their bill, Cotton and Purdue have met with President Donald Trump, whose fiery campaign rhetoric has given way to more moderated discussions of a merit-based system similar to that of Canada, which prioritizes highly educated immigrants. Cotton has in various interviews expressed an openness to that, and Zook is still concerned about any system that doesn’t recognize the need for more non-degreed skilled labor.

Catholic Charities of Arkansas operates two law offices recognized by the Department of Justice Board of Immigration Appeals. Catholics, Gallaher said, recognize that sovereign states have “a right to reasonably control their borders” but also recognize “a human right” to migrate … in order to live a fruitful life.”

The church believes all humans are equal, he said, and values reunification of families, which are “the basis on which the whole of society is built.”

Economic Rationale
Sen. Purdue’s press release announcing the legislation was subtitled “RAISE Act restores historic immigration levels to meet needs of economy.” It quoted Cotton as saying the changes “would promote higher wages on which all working Americans can build a future...”

But while Zook applauds the bill’s reform of the family reunification preference, he does not believe the proposal actually meets the needs of the economy.

“Our position … is we are too over-focused on family reunification and degreed workers to the near exclusion of anyone with a high school education and skills like plumber,” Zook said. “We are rapidly running out of skilled trade people.”

While Catholic Charities does not involve itself in employer-sponsored immigration, Gallaher said Cotton’s argument is undercut by the state’s record-low unemployment rate (3.7 percent in February) even as the minimum wage increased to $8.50 on Jan. 1. In northwest Arkansas, which has the largest concentration of the state’s approximately 150,000 immigrants, the unemployment rate is lower still (2.8 percent).

“At least for Arkansas — I can’t speak for everywhere — his major premise is wrong. And if his premise is wrong, then his goal of reducing immigration by 50 percent is wrong,” he said.

Zook scoffed at the idea that immigrants are depressing wages or keeping Arkansans from finding work.

“I could name at least one [employer] in each county that is constrained by the need for labor,” Zook said. Even the higher minimum wage won’t attract workers, he said. “Those days are over. We’re talking $15 an hour, even $20 an hour.”

(See Arkansas Industry Leaders Say Temporary Workers in Short Supply)

Another thing Zook and Gallaher agree on: Cotton is a serious legislator taking on an issue that needs attention.

“I give Tom credit. He’s at least thinking about it and talking about it,” Zook said. “And he’s right on this point: that the focus on family reunification to the exclusion of all else is dangerous.”

Said Gallaher: “The one thing I can say about Mr. Cotton is he wants to reform our immigration system, and it badly needs to be reformed. … I also trust Mr. Cotton to have researched and rationalized his position. He’s not just reading talking points that have been given to him by some other organization.”

RAISE Provisions
In addition to limiting the family reunification preference, the RAISE Act also proposes limiting to 50,000 per year the number of refugees who are offered permanent residency. In announcing the bill, Cotton and Purdue described that as “in line with a 13-year average,” but the average for the past three years has been almost 100,000.

RAISE would eliminate entirely a relatively small category of immigrants: the 50,000 annual winners of the diversity visa lottery. Ostensibly designed to bring in immigrants from underrepresented areas, Cotton and Purdue described the lottery as “outdated” and “plagued with fraud” and said it “advanced no economic or humanitarian interest.”

Shifting Labor Rules Keep Arkansas Attorneys Busy

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Arkansas labor and employment attorneys are keeping an eye on challenges to the U.S. Department of Labor’s overtime rules as well as a bill that would amend the Minimum Wage Act in Arkansas.

The Labor Department had planned to raise the pay threshold for salaried workers to be considered exempt from overtime rules, but the issue has been mired in court since late last year. The salary level has been $23,600 a year since 2004. But just before Dec. 1, when the threshold was supposed to jump to $47,476, a federal judge in Texas blocked the change with an injunction. Some employers, including St. Bernards Healthcare in Jonesboro, had already made staffing changes to prepare for the new rules.

The Department of Labor has appealed the judge’s ruling to the 5th U.S. Circuit Court of Appeals, where it remains.

“Things are still in limbo,” said attorney Jane A. Kim, whose practice area includes employer and workplace issues at the Wright Lindsey Jennings law firm in Little Rock. “This uncertainty is certainly frustrating, and it’s challenging.”

Meanwhile, the Arkansas House of Representatives passed a bill last week that could keep employers from having to pay employees for putting on and taking off protective gear. As of Thursday morning, the bill was pending in the state Senate.

The legislation is in response to an opinion last May by the Arkansas Supreme Court that upheld an award of $3 million to workers at a Gerber Products Co. baby food plant in Fort Smith who had not been paid for the time it took to put on and take off protective clothing, even though the union and the company agreed that the workers wouldn’t be paid for that time.

The bill would allow a union and a company to agree to make those types of collective bargaining decisions.

“We think it’s a bad bill,” said Tim Steadman of Holleman & Associates PA of Little Rock, one of the attorneys who represented the Gerber employees. “It’s a right-to-work state. You don’t have to be a member of a union. … The union shouldn’t be able to trade your rights.”

The sponsor of the bill, Rep. Charlie Collins, R-Fayetteville, said the bill would affect few workers in Arkansas and is designed to mirror federal law.

“The AFL-CIO is OK” with the legislation, Collins said. “It does not interfere with collective bargaining rights, so to my knowledge there’s no significant opposition.”

Gerber also believes it is the right legislation, said one of the company’s attorneys, E.B. “Chip” Chiles IV of the Quattlebaum Grooms & Tull PLLC law firm in Little Rock.

“Throughout the litigation, Gerber took the position that the terms of the collective bargaining process should be honored, and Gerber believes that now,” Chiles said.

Overtime Rules
Attorney J. Bruce Cross of the Cross Gunter Witherspoon & Galchus firm in Little Rock said it might be some time before the Department of Labor’s overtime regulations are settled.

Cross, whose practice area includes employment issues, said President Donald Trump’s nominee for secretary of labor, R. Alexander Acosta, could modify the overtime rules if approved by the Senate.

And Cross said he thinks when a secretary of labor is confirmed, the Department of Labor “will come back with something that would be more acceptable to more people and have a better chance of being successful.”

In addition, whatever decision the 5th U.S. Circuit Court of Appeals makes on the overtime rules will probably be appealed to the U.S. Supreme Court, he said.

If the overtime rules had been implemented as proposed on Dec. 1, they were expected to award pay to 4.2 million Americans, about 50,000 of them in Arkansas, who previously wouldn’t have been eligible for it.

Kim, the attorney with Wright Lindsey Jennings, said that some of her clients had already made the changes to meet the requirement of the overtime rules before the injunction came down. Those employers are keeping the changes in place.

However, some of her clients who were moving toward making staffing changes put those on hold once the injunction was issued.

She advises her clients who have already adjusted employee salaries or statuses to keep them in place, Kim said.

“But, then, if employers who decided not to make any of the changes, … I think they may want to consider tracking the hours of any employees who may end up being reclassified just in case the rule is enforced retroactively,” Kim said.

Employers’ Strategies Differ
Last summer, St. Bernards Healthcare worked on its strategy for the looming overtime regulations.

It had two options, said Lori Smith, the health company’s vice president of human resources: Either increase the individual salaries or reclassify workers as nonexempt and pay them overtime.

She estimated that only about 50 employees out of about 3,000 needed the adjustment.

Even though the overtime rules weren’t expected to go into effect until Dec. 1, St. Bernards adjusted its employees’ status or pay on Oct. 1.

Some employees received a bump in pay so they could remain exempt, while others who were salaried employees became hourly workers. Those newly nonexempt employees now receive overtime pay when they previously didn’t, Smith said.

“It was really a benefit to our staff,” she said.

When the overtime rules were put on hold, St. Bernards kept the employment changes because of the benefits to the employees.

Smith said the estimated annual increase in payroll expense is $100,000.

Unity Health in Searcy took a different path. It decided to wait to see the final outcome of the overtime rule before making employee adjustments, which were estimated to cost the health care organization a little less than $100,000, said Stuart Hill, Unity Health’s vice president and treasurer.

He said some employees would not have been happy being moved from a salaried position to an hourly classification. “It was an employee satisfaction issue, and it was going to cost us extra dollars,” Hill said.

Minimum Wage Clarity
Last week, the Arkansas House passed a bill on a 92-0 vote to clarify the Minimum Wage Act in Arkansas. The bill was a response to the Arkansas Supreme Court opinion involving the Gerber workers.

In 2012, the workers filed a lawsuit in Sebastian County Circuit Court charging that they weren’t being paid for all the time they worked at the plant, which included putting on and taking off their protective clothes. The employees’ union and Gerber had agreed that the workers wouldn’t be paid for that time.

The state Supreme Court found, in a 4-3 decision issued on May 26, that the Arkansas Minimum Wage Act requires the workers to be paid for the time.

In a dissenting opinion, Justice Rhonda K. Wood wrote that the court’s decision means “the floodgates will open to litigation at the enormous cost to businesses in Arkansas.”

Steadman said he hadn’t heard of any lawsuits being filed as a result of the opinion.

Rep. Collins, however, said a few lawsuits had been filed.

Steadman said that Collins’ bill further muddies the water on the definition of what work is.

“If the Legislature had set out to define what work is, that would provide clarity for both employers and employees to know what’s work, what kind of activities you have to pay for,” he said.

And he said that might lead to more lawsuits. “Employees are still going to feel, rightly, that they’re being cheated if they’re forced to perform tasks that they’re not paid for,” Steadman said.

Collins thinks his bill is clear and is “the best that any human can come up with.” But a lawyer “makes money by creating discord and lack of clarity,” he said. “So if I’m a lawyer, that’s what I’m going to focus on: ‘Where are the seams and how do I pull them apart?’”

Arkansas House Rejects Attempt to Impose Online Sales Taxes

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LITTLE ROCK — Arkansas legislators wrapped up the bulk of their work for the 2017 regular session Monday, approving a $5.5 billion budget and establishing a rainy day fund for future fiscal emergencies.

Gov. Asa Hutchinson said at a press conference Monday that the session successful.

"This is one of the most pro-growth, pro-jobs general assemblies that we've had in recent memory," Hutchinson said.

Hutchinson said future legislative sessions would have to continue to find a long-term solution for the state's highway infrastructure. A bill that would've sent a bond issue to voters during the 2018 general election failed to advance out of the House.

If voters approved the bond issue, a 6.5 percent sales tax on the wholesale price of fuel to fund the state's highways would have been triggered.

The House and Senate will return early next month to tie up loose ends, and are also expected back sometime in May to deal with proposed changes to the state Medicaid program.

The Arkansas House failed in a last-hour effort to impose sales taxes on online purchases in which the buyer is in Arkansas and the seller has its entire physical operation in a different state. Rep. Stephen Meeks of Greenbrier said lawmakers had no business meddling with powers intended for Congress and that state businesses would suffer if they had to dedicate staff to tracking down tax information to benefit 49 other states.

"This is interstate commerce," Meeks said. "This is one of the powers granted to the federal government."

Rep. Dan Douglas of Bentonville said companies with an "economic nexus" to Arkansas should be required to collect and remit sales taxes on their goods, as in-state retailers must do.

"Technology has outpaced our laws," Douglas said. "Our Main Street businesses are suffering now."

The governor, who supported the bill, said the issue was one of fairness.

"It's simply an issue of fairness for our tax system, and it helps our communities whenever you can have brick-and-mortar stores and downtown businesses compete on a more level playing field with those business that are out of state that are marketing to our state," Hutchinson said.

The governor said the issue will be eventually resolved.

E-commerce giant Amazon began collecting such taxes voluntarily last month, saying it would do so in any state that has a sales tax. Some legislators wanted to make sure all online retailers are collecting and remitting the taxes, but the effort received support from only 43 of the chamber's 100 members.

Legislators last week reauthorized a program in which Arkansas uses federal Medicaid dollars to buy health insurance for its low-income residents but are expected to return to the Capitol next month to consider changes. The governor wants to impose a work requirement for some participants and also move some out of the program — if the federal government agrees.

The governor will continue to focus on the legal briefs for the eight men scheduled to be executed over a 10-day period beginning April 17. Arkansas has not executed a prisoner since 2005 because of legal challenges and drug shortages.

"I'm taking those one at a time to make sure each one gets the individual attention that is appropriate," Hutchinson said. "We also want to be reminded, as we go through that process, of the victims of the crimes occurred. We want a balanced conversation during that time."

(Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Dave & Buster's Draws $8.1M Transaction (Real Deals)

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The sale-leaseback of the Dave & Buster's in Little Rock weighed in at $8.1 million.

National Retail Properties Ltd. of Orlando, Florida, bought the 30,346-SF project at 10900 Bass Pro Parkway from Dave & Busters of Arkansas Inc. of Dallas.

The 5.42-acre site was acquired for $2.36 million in September 2015 from Town Center LLC, led by Tommy Hodges.

Burger King Buy
A sale-leaseback of a 2,800-SF fast-food eatery in west Little Rock tipped the scales at $1.33 million.

Sattler Investments LLC of Jonesboro purchased the Burger King at 14916 Cantrell Road from FRP Cantrell Falls LLC, led by Dominic Flis.

The 1.19-acre development previously was linked with a December 2011 mortgage of $1.2 million held by Simmons Bank of Pine Bluff. The location was bought for $880,000 in July 2008 from 14910 Cantrell LLC, led by Steve Hockersmith.

Malmstrom Deal
An 11,125-SF office complex in west Little Rock is under new ownership after a $1.12 million deal.

Buckstaff Kanis Holdings LLC, led by Doug Malmstrom, acquired the 11,125-SF office complex at 11617-21 Kanis Road. The seller is Malmstrom Family Ltd. Co. LLC, led by Patrick Malmstrom.

The deal is financed with a seven-year loan of $952,000 from IberiaBank of Lafayette, Louisiana. The 3-acre development previously was tied to a January 2003 mortgage of $552,000 held by Pulaski Bank & Trust of Little Rock.

The property was purchased for $515,000 in March 2002 from Bird & Bear Enterprises Inc., led by Jay Heflin.

Convenient Sale
A convenience store in south Little Rock rang up a $500,000 sale.

Anwer Hemani bought the Super Stop project at 6828 Col. Glenn Road from Young and Ji Chang.

The deal is backed with a seven-year loan of $400,000 from Arvest Bank of Fayetteville.

The 0.6-acre development previously was tied to a January 2016 mortgage of $206,199 held by Arvest.

The Changs acquired the property for $400,000 in January 2011 from James and Mal Chung.

Shriners Acquisition
A 3,683-SF office building in downtown North Little Rock drew a $470,000 transaction.

Scimitar Shriners Holding Corp., led by Glen Jackson and David Adams, purchased the 632 W. Broadway project from 5 Star Corp. of Meadville, Pennsylvania.

The 1.01-acre site was bought for $5,000 in December 2001 from MJK Co., led by Jean Carl.

Apartment Purchase I
A 12-unit apartment project in midtown Little Rock sold for $395,000. J. Hoffman Properties LLC, led by James Hoffman, David Rapp and Brian Teeter, acquired the 5919 W. 19th St. project.

The seller is Scott Street Apartments LLC, led by Jason Bolden.

The deal is funded with a one-year loan of $439,120 from Simmons Bank.

The 0.53-acre development previously was linked with a July 2013 mortgage of $310,250 held by Central Bank of Little Rock.

The property was purchased for $350,000 nearly four years ago from KMN Properties LLC, led by K. Mike Nutting.

Apartment Purchase II
Apartments in south Little Rock changed hands in a $250,000 deal.

Town Creek LLC, led by Randy Ferguson, bought nine units at 3518 Arapaho Trail and the neighboring six units at 3426 Arapaho Trail from Elgin and Anita Junior.

The combined 0.78-acre development previously was tied to a February 2006 mortgage of $310,000 held by One Bank & Trust of Little Rock.

The Juniors acquired the property for $315,000 more than 11 years ago.

The sellers were Donald and Sharon Smith.

Sologne Manor
A 4,985-SF home in the Sologne Circle neighborhood of west Little Rock’s Chenal Valley development is under new ownership after a $900,000 deal.

Amanda Patterson purchased the house from Kevin and Mary Handley. The deal is financed with a 15-year loan of $100,000 from Southern Bancorp Bank of Arkadelphia.

The residence previously was linked with a July 2013 mortgage of $668,000 held by Wells Fargo Bank of Sioux Falls, South Dakota.

The Handleys bought the property for $835,000 more than three years ago from William and Wendy Raney.

Deauville Abode
A 7,262-SF home in the Deauville Place neighborhood of west Little Rock’s Chenal Valley development rang up an $875,000 sale.

Donald Marshall Jr. acquired the house from Robert Clancy Jr.

The deal is backed with a five-year loan of $514,443 from Southern Bancorp Bank.

The residence previously was tied to a June 2015 mortgage of $600,000 held by Bear State Bank of Little Rock.

Clancy purchased the property for $900,000 nearly two years ago from Bhu and Jyoti Makan.

Cliffewood House
A 2,991-SF home in Little Rock’s Cliffewood neighborhood drew a $753,000 transaction.

Jason and Abby Holsclaw bought the house from James and Elizabeth Smitherman.

The deal is funded with a 30-year loan of $543,000 from IberiaBank.

The residence previously was linked with an April 2016 mortgage of $652,000 held by U.S. Bank of Cincinnati.

The Smithermans acquired the property for $815,000 a year ago from Coleman and Shannon Treece.

Heights Residence
A 3,903-SF home in the Heights neighborhood of Little Rock sold for $739,900.

Gregory and Brittany Wood purchased the house from Jonathan and Jennifer Bricker.

The deal is financed with a 30-year loan of $369,950 from Arvest Bank. The residence previously was tied to a December 2016 mortgage of $385,000 held by BancorpSouth Bank of Tupelo, Mississippi.

The Brickers bought the property for $445,000 in December 2010 from GSA Home Equity Trust 2007-5 Asset-Backed Certificates Series 2007-5.

Courts Home
A 4,705-SF home in The Courts neighborhood of west Little Rock’s Chenal Valley development changed hands in a $542,532 deal.

David and Blair Greenwood acquired the house from Matthew and Amber Enderlin.

The deal is backed with a 30-year loan of $424,100 from Simmons Bank.

The Enderlins purchased the property for $440,000 in September 2010 from Jodi and Raymond Barboza.

Club House
A 2,797-SF home near the Country Club of Little Rock is under new ownership after a $520,000 sale.

Scott Tabor bought the house from Wells Fargo Bank, trustee of Banc of America Securities Inc. Pass-Through Certificates, Series 2004-7.

The deal is funded with a 10-year loan of $467,480 from IberiaBank.

The property was recovered at a $510,000 foreclosure sale in March 2016 from James and Kathleen Atkins.

The residence previously was tied to a May 2004 mortgage of $616,000.

Seven-Digit Construction

Cyclotron       $5,500,000
9015 Carti Way, Little Rock
Nabholz Construction Corp., Conway

New Home    $2,100,000
20 Varennes Court, Little Rock
Markus Homes, Little Rock

Office Renovation    $1,214,431
Wilson & Associates
400 W. Capitol Ave., Little Rock
D&N Construction LLC, Vilonia

Chick-fil-A Coming to Pinnacle Hills in Rogers

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The popular fast-food restaurant chain Chick-fil-A appears headed to a spot in the Pinnacle Hills area of Rogers.

No formal plans have been submitted to the city for the development, which will be adjacent to the Chuy’s and Pei Wei restaurants on Pauline Whitaker Parkway. Chick-fil-A, based in Atlanta, has eight locations in northwest Arkansas, including two in Rogers.

The area has become a popular site for developers for its location across Interstate 49 from the Pinnacle Hills Promenade shopping center. The 10-story Hunt Tower office building recently opened and Wal-Mart opened the Arkansas Music Pavilion in 2014.

Joe Whisenhunt’s Whisenhunt Investment Group of Little Rock is developing a 55-acre lot south of Pauline Whitaker that will include 40,000-SF of retail and a three-building office complex.

Carl Garrett, who owns Table Mesa Bistro in downtown Bentonville, will open a restaurant called Mirabella’s Table in the development, and Smitty’s Garage Burgers & Beer of Norman, Oklahoma, is expected to open its second Arkansas location there as well.

Promenade at Chenal Property Purchased for $4 Million

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A retail project in west Little Rock, commercial property in Sherwood, a parking lot in downtown Little Rock and two homes provide our five piece of multimillion-dollar transactions.

• Beefam LLC and Bonerts MV LLC of Santa Ana, California, purchased a 7,457-SF retail project at 17701 Chenal Parkway that’s home to Pei Wei and Mattress Firm for $4 million.

Seller: An affiliate of Thompson Thrift Development Inc. of Terre Haute, Indiana.

• Terraforma LLC and 5620 Warden Road LLC, both led by Doug Meyer and David Bruning, sold the 2.9-acre 4Wheel Parts development at 5620 Warden Road and the 2.34-acre Carhop development at 5600 Warden Road.

Bayird Properties LLC, led by Keith and Amy Bayird, paid $2.4 million for the Sherwood properties.

• Scion Investments LLC, led by Reed Lynch, bought the parking lot on the east side of Broadway between Third and Fourth streets for $2.1 million.

Seller? 301 South Broadway LLC, led by the S. Gene Cauley Irrevocable Trust.

• Craig and Elizabeth Campbell sold a 4,996-SF home in the Palisade Estates neighborhood of Cammack Village for $1.9 million.

Buyer: Palisades Park LLC, led by Lambert Marshall Jr.

• RAL Revocable Trust, led by Marilyn Rene Nauman, acquired a 7,099-SF home in the Sologne Circle neighborhood of west Little Rock for $1.2 million.

Seller: Lowell Steven Jumper & Sheila Dianne Jumper Revocable Trust.

Republicans Hope Trump Amenable to Food Stamp Restrictions

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AUGUSTA, Maine — Maine resident Zak McCutcheon says he likes soda but acknowledges he'd drink less of it if his governor convinced Republican President Donald Trump to put restrictions on the approximately $200 a month he receives in food stamps. He thinks it may even make recipients healthier and less overweight.

"If I was more restricted to what I could buy, I would become more of a veggie eater," said McCutcheon, who recently perused grapes and packages of pre-chopped vegetables at an Augusta food bank with his pregnant girlfriend.

But another one of Maine's 180,000 food stamp recipients, Samantha Watson, said she believes a ban from using food stamps on soda and candy won't make low-income people any healthier. It would take more than that to change eating habits, she said, since food stamps cover only a fraction of the monthly grocery bill for herself and her 3-year-old daughter.

Maine Gov. Paul LePage and fellow Republicans in two other states are now renewing their efforts to restrict food stamps in the hopes that Trump will be more amenable than the previous administration.

In 2011, former Democratic President Barack Obama's administration rejected then-New York City Mayor Michael Bloomberg's soda ban for food stamp recipients and in June, he raised "significant" concerns with LePage's proposal, saying there'd be no meaningful way to evaluate whether the ban changed the way recipients bought sweets.

While Trump's budget proposal doesn't include food stamp changes, his choice for secretary of agriculture, Sonny Perdue, of Georgia, has signaled support for overhauling the $71 billion Supplemental Nutrition Assistance Program, which administers food stamps to 44 million recipients.

LePage is optimistic the new administration will approve his revived proposal, which he says is backed by common sense and a desire to reduce high rates of obesity and diabetes, the latter of which afflicted his mother.

The governor's efforts in Maine have inspired legislators in Tennessee and Arkansas, who say they won't give up trying to restrict food stamp purchases.

"We don't allow people to buy alcohol and cigarettes with welfare dollars, why should we allow people to buy junk food that leads to just as many health problems?'" said Tennessee Rep. Sheila Butt, a Republican, who hopes Trump will give states more power over the state-run SNAP program.

A study of one leading U.S. grocery retailer released in November by the U.S. Department of Agriculture found that in 2011, 20 cents of every dollar spent on food stamps went to sweetened beverages, desserts, salty snacks, candy and sugar. SNAP households spent about 5 cents per dollar on soft drinks and 2 cents per dollar on candy, similar to the spending habits of households not receiving SNAP benefits.

Last summer, LePage threatened to cease Maine's administration of the food stamp program after the USDA raised questions about Maine's proposed ban. The governor's renewed request would divert federal funds away from nutrition education — which amounted to $4.3 million in the last fiscal year — and toward food banks, schools and other community agencies to distribute healthy foods.

Jim Hanna, the executive director at Cumberland County Food Security Council, said poor people have enough issues to manage without being told what to eat and drink, and that a soda or candy tax would be a better approach than eliminating the state's SNAP education program.

"It seems very contradictory to, on the one hand, limit people's access to foods that have negative nutrition content and then to limit access to information to support them to make better choices about nutrition," Hanna said.

The debate over restrictions goes back to the 1940s, when the then-orange food stamps couldn't buy soft drinks, and the 1960s and 1970s, when concern over bureaucracy and figuring out just what counts as junk food hindered attempts to exclude soft drinks.

There's been little change over the ensuing years, although the USDA will soon require stores that accept food stamps to stock more fruits, vegetables and other healthy food. The agency's also providing farmers market with free equipment to accept SNAP debit cards, and supporting programs that provide "bonus dollars" for purchases at farmers markets.

Critics from major medical groups to food policy experts say the existing program promotes chronic illness and amounts to public subsidies for powerful junk food conglomerates that lobby against restrictions. The Grocery Manufacturers Association, which represents companies like Coca-Cola, calls the restrictions a "bureaucratic mess."

Still others wonder what impact the restrictions might have on SNAP long term. Tatiana Andreyeva, a University of Connecticut professor and director of economic initiatives at the Rudd Center for Food Policy and Obesity, fears that proposals such as LePage's could be the first step to the program's decimation.

"It's very easy to jump from a restriction on sugary beverages to let's just cut benefits," she said.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Medical Clinic Replaces Nichols Furniture After $3M Purchase (Real Deals)

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Redevelopment of a 31,884-SF retail project in west Little Rock is in motion after a $3.03 million transaction.

PTCOA Shackleford Clinic LLC, led by Dr. Meraj Siddiqui and Dr. Ronald Tilley, bought the Nichols Furniture store at 108 N. Shackleford Road.

The seller is Nichols Building LLC, led by John Nichols. The deal is financed with a seven-year loan of $4.2 million from First Community Bank of Batesville.

The 2.35-acre development was acquired for $1.7 million in July 1987 from Phoenix Properties Inc., led by Patsy Thomasson.

Burger Buy
A 9,364-SF office-eatery project in Maumelle tipped the scales at $1.4 million.

Atkinson Properties LLC, led by Russell and Ric Atkinson, purchased the David’s Burgers at 102 Country Club Parkway. The seller is Anchor Realty Investments LLC, led by Alan Bubbus.

The deal is funded with a $919,382 loan from Central Bank of Little Rock.

The 1.27-acre development previously was tied to a December 2014 mortgage of $995,400 held by First State Bank of Russellville.

Anchor Realty bought the property for $510,000 more than two years ago from Arvest Bank of Fayetteville.

Warehouse Sale
A 29,800-SF warehouse complex in Little Rock weighed in at $1.3 million.

Store Master Funding X LLC, an affiliate of the Store Capital real estate investment trust in Scottsdale, Arizona, acquired the Arkansas Wholesale Lumber Co. project at 3801 Mabelvale Pike for $1.3 million. The seller is Wayne & Robby L. Ridout Family LLLP.

The deal is backed with a $1.3 million funding agreement administered by Citibank of New York. The 12.53-acre development previously was linked with a March 2014 mortgage of $460,650 held by First Community Bank.

The property was purchased for $450,000 in November 2008 from the Gene & Dorothy G. Trickey Joint Revocable Trust.

Convenient Redevelopment
A 2,460-SF convenience store in the Riverdale area of Little Rock changed hands in a $520,000 deal.

WG Arkansas LLC, led by Will Rockefeller, bought the 1402 Rebsamen Park Road project.

The seller is F. Schuman-R. Kaye Co. LLP, led by Marlene Adleman.

The 0.27-acre site was acquired for an undisclosed sum in September 1962 from the Housing Authority of the City of Little Rock.

Warehouse Land
A 31.9-acre industrial tract in North Little Rock rang up a $452,000 sale.

Zero Mountain Inc. of Fort Smith purchased the land adjoining the north and east side of its 1400 Gregory St. project from Central North Hills LLC, led by Dickson Flake.

The property was bought in January 2001 as part of a nearly $14 million deal with Central & Southern Cos. LLC, led by Henry Nichols.

Church Transaction
Jacksonville congregations were on either side of a $302,000 transaction.

Synagogue New Life Church acquired the 11,588-SF project at 2015 N. First St. from Bible Baptist Church.

The deal is financed with a five-year loan of $312,000 from BOKF of Tulsa.

The 1-acre location was purchased for $2,000 in October 1962 from Lena Wilson and Gene Wilson.

Agri Acreage
Eighty acres in southeast Pulaski County sold for $176,000.

Southern Forestry & Wildlife LLC, led by Benton Gann, bought the farmland and woods north of Arkansas 161 between Macedonia and Adams roads about 5 miles west of England.

The seller is Full Harvest Agricultural REIT II Inc. of Clarksdale, Mississippi.

The deal is funded with a three-year loan of $140,000 from First Security Bank of Searcy.

Full Harvest acquired the land in November 2012 as part of a 415-acre, $1.5 million transaction with Webb Family Farm LLC, led by Marilyn Webb Buffalo and Jim Webb.

H&D Acquisition
A commercial property in south Pulaski County is under new ownership after a $165,000 deal.

H&D Central Arkansas LLC, led by Hope Allen, purchased the 0.51-acre project at 11300 Arch St. Pike from Gary Shaw.

The property was bought for $125,000 in July 2011 from Earl and Debra Godwin.

Mortuary Property
A 7,000-SF funeral home in North Little Rock drew a $150,000 transaction.

Robinson Mortuary Inc., led by Kenneth Robinson, acquired the 4511 E. Broadway project from Bliss and Linda Douthwright.

The deal is backed with a five-year loan of $120,000 from First Security Bank.

The 0.38-acre development previously was tied to a July 2010 mortgage of $80,000 held by U.S. Bank of Cincinnati.

The property was purchased for $90,000 in July 2005 from Betty King.

Waterview Estates
An 8,876-SF manor in the Waterview Estates neighborhood of west Pulaski County tipped the scales at $1.7 million.

Rodney and Amber McCarver bought the 5.5-acre spread overlooking Lake Maumelle from Gregory and Brittany Wood.

The deal is financed with a 30-year loan of $1.5 million from Arvest Bank. The residence previously was linked with a December 2013 mortgage of $750,000 held by the bank. The Woods family acquired the property for $1.2 million in March 2010 from 2610 Acres LLC, led by Rick Ferguson.

Deauville Abode
A 5,770-SF home in the Deauville Place neighborhood of west Little Rock’s Chenal Valley development changed hands in an $887,000 deal.

JEC Holdings LLC, led by John Ed Chambers, purchased the house from Robert and Casey Love. The property was secured by a 2013 mortgage of $718,000 held by Fairway Independent Mortgage Corp. of Plano, Texas.

The property was bought for $826,000 in August 2007 from Kevin Hannah.

Lakewood Residence
A 6,470-SF home in North Little Rock’s Lakewood Park neighborhood rang up a $660,000 sale.

Suresh and Rohini Shah acquired the house from Gerald and Willodean Burger.

The deal is funded with a 30-year loan of $528,000 from Arkansas Federal Credit Union of Jacksonville.

The residence previously was tied to an August 2005 mortgage of $383,500 held by Bank of England Mortgage Co.

The Burgers purchased the location for $69,000 in August 1993 from Eagle Development Co., the real estate arm of Little Rock’s Rebsamen Insurance Co.

Woodland’s Home
A 4,754-SF home in the Woodland’s Edge neighborhood of west Little Rock is under new ownership after a $535,000 transaction.

Paul and Patti Moser bought the house from Ron and Victoria Tyne. The deal is backed with a 15-year loan of $424,094 from BOKF.

The residence previously was linked with a February 2014 mortgage of $413,000 from BancorpSouth Bank of Tupelo, Mississippi.

The site was acquired for $75,000 in July 2013 from Rocket Properties LLC, led by Ron Tyne and Lisenne Rockefeller.

Seven-Digit Construction

Warehouse Addition    $4,500,000
Gateway Tire
6201 Patterson Road, Little Rock
EM Construction LLC, Bath, Ohio
 
High School Addition            $1,400,000
Baptist Preparatory School
8400 Ranch Blvd., Little Rock
AMR Construction LLC, Little Rock

20 units    $1,200,000
Stonecrest Apartments
9700 Baseline Road, Little Rock
Stonecrest Apartments LLC, Jacksonville

Arkansas PR Pros on Pepsi, Hitler and Unfriendly Skies

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It was a dizzying couple of weeks, even in the ever-spinning world of PR.

Just as the outrage and laughter was dying down over Pepsi’s silly ad featuring the model Kendall Jenner at a multicultural protest, video of a bloodied man being dragged off an overbooked United Airlines flight sprang up everywhere.

Arkansas PR and advertising professionals were already scratching their heads, and then presidential spokesman Sean Spicer oddly lifted Hitler from the bottom of history’s list of worst dictators.

Spicer apologized, but only after several attempts at walking back comments that compared Hitler favorably to Syrian dictator Bashar al-Assad and described Nazi death camps as “holocaust centers.”

Pepsi, too, was sorry for its ad, which seemed to suggest that racism and police brutality could be solved with the gift of a can of soda.

United CEO Oscar Munoz initially apologized for “having to re-accommodate” passengers, as if that were an apt description of a 69-year-old being pulled unconscious from the cabin by security officers. The man’s crime? Refusing to give up his seat for one of four employees United was determined to get onto the flight.

“Welcome to the age of mobile,” said Brooke Vines of Little Rock’s Vines Media LLC. “The United CEO did more harm than good by not thinking the initial statement through. Apologizing for ‘re-accommodating’ after viewing that video is astonishingly bad.”

Jason Brown of The Communications Group pointed out that Munoz, ironically, was named PRWeek’s “Communicator of the Year” last month, and said he dug himself deeper by criticizing the passenger, Dr. David Dao of Elizabethtown, Kentucky, as “disruptive and belligerent.” United didn’t follow a simple rule, Brown said: “If you mess up, fess up.”

Chip Paris of Paris Marketing & Public Relations in Fort Smith said the airline should have realized it couldn’t escape the brutal optics of the video. “Blaming others is almost always a losing proposition,” he said. United “mishandled a common situation that could have been defused” with little effort and expense.

Timing is crucial, said Kristen Vandaveer Nicholson of Mangan Holcomb Partners. “The speed at which you apologize for a PR blunder can make or break a brand,” she said. “United went 18 hours before making a public statement, and by that time, the video had been viewed millions of times.”

Munoz finally grasped the damage his brand was taking. “It’s never too late to do the right thing,” he said Tuesday afternoon, taking “full responsibility” for a “horrific event.” By that time, more than a day had passed and United’s stock was plunging.

“At some point you have to own it, apologize and weather the storm,” Vines said. “This shouldn’t have happened.” Overbooking, she said, is a problem airlines could mitigate with better policies and a sense of fairness to customers.

United’s management seemed “out of touch,” said David Martin of Martin-Wilbourn Partners in Little Rock, who often handles crisis management. “They have a lot of work to do,” he said. “They need to make a financial commitment to reputation repair and to create a crisis communication response team.”

Martin said he flew United overseas last week and the airline ran out of forms passengers needed for entry at customs. They were directed to a website for a free gift. “Not enough at the end of an 18-hour flight,” Martin concluded.

Denver Peacock of the Peacock Group in Little Rock said a multimillion-dollar fiasco could have been avoided if United had “simply offered more compensation or found alternative passage for its crew.”

In Pepsi’s case, it pulled its ad and apologized for its tone-deafness, and for putting Jenner in a bad spot. In the ad, she joins street protesters and defuses tensions by handing a police officer a Pepsi. The ad was scorched on social media and quickly became fodder for comedy, including a “Saturday Night Live” sketch where Cecily Strong, playing Jenner on the phone with a friend, says, “I stop the police from shooting black people by handing them a Pepsi. I know! It’s cute, right?”

Vines said the SNL clip summed up the ad’s problems. “What you have is a lack of common sense,” she said. “Some issues are simply too sensitive to exploit. It’s hard to believe that the concept went through so many approvals … and someone actually signed off on it.”

Paris offered a possible explanation. “Apparently the spot was created by Pepsi’s in-house ad group. That could partially account for why it made it all the way through the creative process without someone questioning the content.”

ASU Convention Center Project Also Delayed

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As the Jonesboro Hyatt Place Hotel & Convention Center faces delays, the other convention center being developed in Jonesboro hasn’t broken ground yet. However, the Embassy Suites and Red Wolf Convention Center is on schedule to open on the Arkansas State University campus before the start of the fall 2018 semester, months later than first projected, developer Tim O’Reilly said last week.

The reason for the delay is that “the design of these big projects just sometimes take longer than we would hope,” O’Reilly, CEO of O’Reilly Hospitality Management of Springfield, Missouri, said in an email to Arkansas Business last week.

Construction on the project was expected to start in the third quarter of last year, O’Reilly told Arkansas Business in August. And in February, he said that construction would begin before the middle of April. The project is expected to take 14-15 months to complete.

Last week, O’Reilly said he is awaiting the city’s final approval of architectural plans for the 202-room Embassy Suites hotel, 40,000-SF Red Wolf Convention Center and Houlihan’s restaurant. Killian Construction Co. of Springfield, Missouri, also is finalizing subcontractor agreements for the start of construction, he said. The groundbreaking will be held as soon as possible. “We are moving forward with this project as promised and [are] excited to be a part of the Jonesboro community,” O’Reilly said.

O’Reilly’s Jonesboro Hotel Partners LLC will lease space from A-State. No rent will be due for the first three years; then the university will collect $250,000 per year for years four through nine, plus up to 10 percent of revenue from its operation. For the 10th year and after, the rent will increase based on the Consumer Price Index.

Jonesboro Hotel Liens Raise Early ‘Red Flags’

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The $30 million Jonesboro Hyatt Place Hotel & Convention Center might not open next spring as planned.

The project, one of two convention centers being built in a city of about 70,000, is facing contractors’ liens totaling nearly $900,000, which have raised “some serious red flags” with city officials.

“It’s on hold, and we have not been involved in any of it,” said architect Jim Little of Little & Associates of Jonesboro, who was to oversee the day-to-day project operations, including the site inspections.

Little told Arkansas Business last week that he had no more information about the project, which broke ground only eight months ago.

The developer of the project, Chris Keller, CEO of Northern Arkansas Hotel & Convention Center LLC, did not respond to emails or a voice message left on his cellphone. Keller is part of the Keller Family Hyatt Group of Effingham, Illinois, which has developed other hotel projects.

But in an April 5 email to the chairman of Jonesboro’s Advertising & Promotion Commission, Keller said he was moving forward with the project despite the subcontractors sounding an alarm.

The A&P Commission has pledged $300,000 in tax revenue for the Hyatt development. “As many of you are aware, our private equity partner has experienced a delay in providing the funds for which we have contracted,” Keller wrote in the email to Chairman Jerry Morgan. The email didn’t identify the financial backer. “We continue to work to bring construction back up to speed so that we can deliver the highest quality facility to the community of Jonesboro, as promised.”

The news of the project’s problems didn’t surprise Mike Buettner, an alderman for the city of Belleville, Illinois.

Buettner said the Keller Group is developing a Hofbräuhaus restaurant and a Hyatt Place Hotel and convention center in Belleville, and it could receive up to $38 million in tax incentives.

Announced in 2015, the project isn’t completed. The city spent $2 million to extend a sewer line to the development.

The Hofbräuhaus is expected to open in late summer, a year later than anticipated. The Hyatt project is penciled in to break ground later this spring or early summer.

“This is a big debacle — it really is,” said Buettner, who voted against the tax incentives. “It’s all kinds of delays. It seems to be dead in the water here, so I don’t know what’s going on.”

Buettner referred questions to the city’s mayor, Mark Eckert, who didn’t return a call for comment.

A spokesman for the Keller family, Ron O’Connor, told Arkansas Business last week that the Hyatt project in Belleville had never been delayed, but the Hofbräuhaus project was delayed twice. The setback on it was caused by a “longer than expected wait for all the approvals from the state of Illinois.”

Other delays were tied to health issues of Chuck Keller Sr. and a change in the plans that the Hofbräuhaus requested, O’Connor said.

Meanwhile, in Jonesboro O’Connor said he didn’t know any details about the project in Jonesboro, where the A&P Commission is getting antsy.

Morgan, who recently began serving as chairman of the commission, said during an April 5 meeting that the project had raised “some serious red flags.” The email Morgan received from Keller before the meeting didn’t satisfy commissioners, who agreed to send a letter demanding Keller answer several questions about the project and asking to see a commitment letter from Hyatt.

If Keller doesn’t answer the commission’s letter in a reasonable time, the commission will rescind its funding agreement, Morgan said during the meeting. Morgan told Arkansas Business that the letter was being drafted last week and should have been sent by Friday.

Several spokesmen for Hyatt didn’t respond to emails or phone messages.

Earlier this year, the commission gave $75,000 to the Hyatt project, a small portion of which has already been spent. But during the April 5 meeting, commissioners unanimously agreed to ask Keller to put the remainder of that award, about $70,000, in escrow until “this issue is resolved,” Morgan said. The official request was also expected to have been sent late last week.

Keller has provided the commission with proof that the money was in an account and the commission anticipates he will put the funds in escrow.

Competing Centers
Jonesboro had been trying to bring a convention center to its city for years. In 2006, city officials asked voters to approve a sales tax to support one. It failed.

But efforts continued, and by 2016, two convention centers were in the works.

O’Reilly Hospitality Management of Springfield, Missouri, has plans to build a $50 million Embassy Suites Hotel, convention center and restaurant on the Arkansas State University campus.

In February 2016, Northern Arkansas Hotel & Convention bought 13 acres at Brown’s Access Lane near Interstate 555 for $3.25 million from Centerline LLC of Jonesboro, led by Carroll Caldwell.

Both groups had asked for support from the A&P Commission, which collects a 3 percent tax from hotel guests.

In March 2016, the A&P Commission sided with the Keller’s Hyatt project, agreeing to provide $300,000 over a three-year period for advertising and promotion. The group also would receive a hotel tax abatement of up to $200,000 per year during the same period.

The A&P Commission said it could support only one convention center and gave nothing to the O’Reilly project. It, however, received a $400,000 grant from the Delta Regional Authority for site preparation and improvements.

“It is unfortunate both that there appears to be a political competition of sorts regarding our project and another convention center project that has been attempted for many years, and that there is definitely not a market or opportunity to succeed for two convention centers in Jonesboro,” Tim O’Reilly, CEO of O’Reilly Hospitality Management, said in a news release in March 2016.

(Related: ASU Convention Center Project Also Delayed)

‘A Dream Come True’
On Aug. 17, the Keller Family Hyatt Group met on a rainy day at the Allen Park Community Center in Jonesboro for a groundbreaking ceremony. Developers said that the project could create 500 construction jobs and 250 permanent jobs over the next two years.

Based on the company’s projections, the company could qualify for up to $7.5 million in tax credits from the Arkansas Economic Development Commission. AEDC spokesman Scott Hardin said the project qualified for the Arkansas Tourism Development Incentive late last year. But, he said, the company won’t receive the tax credits until the work has been done and audited by the Arkansas Department of Finance & Administration.

At the celebration, Chris Keller said, “We couldn’t be more excited to be here or more impressed with the hospitality of the community. It really is a dream come true after everyone has worked so hard. We’ve felt welcome in Jonesboro since day one.”

It wouldn’t take long, though, before problems surfaced.

Construction work at the site appeared to have stopped in February, said Junius Bracy Cross Jr., a Little Rock attorney representing a subcontractor on the project, Naylor Concrete & Steel Erectors LLC of Mount Vernon (Faulkner County).

The first public sign of trouble came on Feb. 13, when subcontractor KEG Construction LLC of Paragould filed a lien in Craighead County Circuit Court. The filing said KEG was owed $413,175 for site work done on the project.

On March 23, Naylor Concrete recorded its lien against the property, alleging it was owed $458,698 for work done.

On April 5, KEG — still unpaid — sued the general contractor, Construction Network Inc. of Jonesboro, and the Keller family’s Northern Arkansas Hotel & Convention Center. KEG is seeking the money it is owed, attorneys’ fees, interest and other unspecified damages. Construction Network didn’t return a call for comment.

The Hyatt project was on the agenda for discussion by the A&P Commission the same day KEG filed its lawsuit. Joe Hafner, who began serving on the commission this year, also was concerned about the delays in the project.

When KEG’s lien was filed in February, Keller told a reporter that “his primary investor is five months overdue with his second draw on the project,” but the issue would be resolved in two weeks, Hafter said at the meeting.

Discusstion of the Hyatt's construction begins at the 15-minute mark in the video below:

“So that was about six weeks ago, and it doesn’t really sound like we’re any further along than we were,” Hafter said.

Keller, who was invited to the meeting, said in the email to Chairman Morgan that he couldn’t make it because of a prior meeting that couldn’t be canceled.

“Our team, as I write this is not resting and is working diligently behind the scenes to update our facility making it as environmentally friendly as possible and improve the quality of our design,” Keller said in the email to Morgan. “We appreciate the community’s excitement and patience in our project and looking forward to the delivery of a development for which everyone in Jonesboro will be proud.”

Hooters May Reappear in Little Rock

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Stanley Conrad with Hooters of Arkansas has filed a new application with the state for a restaurant mixed drink permit for a location at 6 Bass Pro Drive in Little Rock.

This would be a second central Arkansas location for the owl-themed restaurant chain, which has a store at 4110 Landers Road in North Little Rock. (And no, despite the owl logo, it’s not really owl-themed.)

A Hooters representative hadn’t returned our email as of press time.

Tacos 4 Life Franchises Expanding Beyond Arkansas

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Tacos 4 Life, the restaurant mini-chain based in Conway, appears poised to move beyond “mini-chain” status to plain “chain” status with its plans to open more locations in Arkansas, the hiring of a chief marketing officer and, in particular, its announcement last week that franchise opportunities are now available in Texas, Oklahoma, Alabama and Tennessee.

Austin Samuelson, who founded Tacos 4 Life, with his wife, Ashton, told Whispers they had been working on the franchise plan for the last six months.

“We’ve just really just gotten to the point in the last few weeks where we’ve been able to say, ‘OK, we’re ready to go live with this,’” Samuelson said.

He noted the addition to the Tacos 4 Life team in December of Donnie Robertson, chief marketing officer, touting his marketing experience at franchisers Nothing Bundt Cakes and Cicis Pizza.

With the company’s focus on fighting childhood hunger — it donates 22 cents to the nonprofit Feed My Starving Children for every meal sold — “franchising is a great answer” to the question of “What would feed the most kids?” Samuelson said.

In addition, Tacos 4 Life is on its way to opening 15 company-owned stores within the next three to four years, the company says. Tacos 4 Life, which has two restaurants in Conway, one each in Fayetteville and Conway and a Benton location scheduled to open today, is set to open a franchise location in Searcy this summer and a company-owned store in Springdale in the fall, among others on the way, the restaurateur said.

The company has attracted investors, Samuelson said, though he declined to identify them, but is also funding its growth through the revenue from its current restaurants.

The company’s website says that total initial investment necessary to begin operation of Tacos 4 Life franchise ranges from $511,466 to $737,400 and that franchise candidates and their partners/investors must have a combined liquid capital of at least $150,000 and a combined net worth of at least $600,000.

Samuelson said the company has already received a lot of interest from potential franchisees, who are attracted to Tacos 4 Life because of the uniqueness and quality of its food, the family atmosphere and the company’s mission. He said each store can feed, through the donations to Feed My Starving Children, about 1,000 kids a day.

“And who doesn’t love tacos? It’s a win-win.”

Gateway Property Sold for $3.5 Million

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A retail building, a fast-food eatery and an undeveloped parcel generated multimillion-dollar transactions.

• Gateway Village I LLC, led by Tommy Hodges, sold the 10,430-SF 6 Bass Pro Drive project for more than $3.5 million.

Who bought the home of David’s Burgers, Hogman’s Gameday Superstore and more?

Three limited liability companies managed by the Little Rock office of Colliers International: 300 West Lime (Lakeland), 64.9 percent; Huntsville Investors, 25 percent; and Gateway Village Lot 2, 10.1 percent.

• D.L. Rogers Corp. of North Richland Hills, Texas, bought the Sonic Drive-In at 11700 Col. Glenn Road for $1.3 million.

Seller: LLEJ Lot 1 LLC, led by Leonard Boen.

• Presbytery of Arkansas sold 10 acres near the southwest corner of Chenal Parkway and Northfield Drive for $1 million.

Buyer: Crest At Chenal LLC, led by Larry Crain Jr.


Video: Fitz Hill Talks Transparency in Leadership, Work at Scott Ford Center

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Leaders should tell the truth, be transparent and communicate regularly with stakeholders during a crisis, says Fitz Hill, a former college football coach and college president, in Part 2 of Arkansas Business' new video series on leadership.

Hill, the executive director of the Scott Ford Center for Entrepreneurship & Community Development and the Arkansas Baptist College Foundation, sat down with Online Editor Lance Turner for the first installment of Arkansas Business' "Foundations" video series.

The series aims to highlight key tools for success for businesses, nonprofits and other organizations. The first four videos of the series, which will premiere over the next two months, focus on leadership and feature interviews with Hill, Gina Radke of Galley Support Innovations Inc. of Sherwood and Jon Harrison of VIP2.

In Part 2 of a two-part conversation, Hill talks about his time as president of Arkansas Baptist College, the challenges he faced there, and his new role leading the Scott Ford Center. The center, which launched in 2012, is aimed at developing a trained corps of entrepreneurs prepared to start businesses in underserved communities. 

You can watch Part 2 right here:

(Part 1 of the interview is available here.)

During his time as college president, Hill dealt with cash flow problems as the school quickly took on more students. Calling it a humbling experience, Hill said he learned that leaders must always be upfront with stakeholders and confront problems directly, even when the answers don't come easy.

"When that phone rings, answer it, and tell them what your situation is," Hill said. "Don't not answer the phone … don't delay calling them back — make the call first [that] you don't want to make."

An Arkadelphia native, Hill graduated from Ouachita Baptist University in 1987. He received a master's from Northwestern State University in Natchitoches, Louisiana, in 1991 and a doctorate in higher education leadership from the University of Arkansas at Fayetteville in 1997. 

Hill rose to become Razorback assistant head football coach before becoming head football coach at San Jose State University in 2001-05. He was executive director of the Ouachita Baptist Opportunity Fund from 2005-06. In 2006, he became the 13th president of the historically black, 132-year-old Arkansas Baptist College. He left the president's post in 2016 to lead the college's foundation.

Tom Hayes: Tyson Focused on Sustainable Growth

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Tyson Foods Inc. of Springdale is focused on growing in Arkansas, president and CEO Tom Hayes said Tuesday during the Arkansas Economic Development Foundation Luncheon at the Statehouse Convention Center in Little Rock.

Hayes was the keynote speaker of the event, hosted by the AEDF and the Arkansas Industrial and Economic Development Foundation. Gov. Asa Hutchinson also spoke briefly, and John Tyson, chairman of the Tyson Foods board of directors, introduced Hayes.

Hayes was appointed to CEO in December. The former company president joined Tyson Foods in 2014, when the publicly traded firm acquired Hillshire Brands of Chicago in an $8.5 billion deal.

The acquisition was a deal that John Tyson said allowed Tyson Foods to take the next step toward becoming an "integrated consumer products company," one that aims to go far beyond commodity proteins into value-added packaged products.

Hayes announced elements of the new strategy in February, shortly after the company revamped its leadership team. In addition to placing great emphasis on valued-added branded products, Tyson Foods is emphasizing sustainability and new food technology to lead growth.

On Tuesday, Hayes said the company will aim to create a sustainable food system because it's what consumers demand and will ultimately drive profits.

"We're dead set on having no trade-offs, on making sure we have healthier animals, a healthier environment, healthy workplace, healthy people, healthy food," he said. "But it's important to do all of those together. We're not about changing one out for the other."

Hayes also dispelled a misconception that the company is moving toward focusing exclusively on plant-based protein. While projects like Beyond Meat are a recent addition to Tyson Foods' portfolio, Hayes said the company wants to grow in every area, and that animal proteins remain a driving force for the company.

Hayes also spoke generally about how Tyson Foods, as a so-called "Big Food" company, would raise expectations by working toward solutions for feeding the world.

The New Hampshire native called Arkansans talented, hard working, warm and generous. He said the beginnings of Tyson Foods were impressive too, but humble.

Hayes also said he would soon be a full-time resident rather than a commuter; he has purchased a home near the Springdale-Fayetteville line.

Arkansas Unemployment Falls to Record Low 3.6 Percent

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Arkansas' unemployment record fell to another record low, dropping to 3.6 percent in March from 3.7 percent in February.

The state Department of Workforce services said Arkansas' civilian labor force gained 3,188 workers, with 4,428 more employed and 1,240 fewer unemployed Arkansans.

"The unemployment rate decline to 3.6 percent marks a new record low for Arkansas, breaking last month’s previous record low of 3.7 percent," Susan Price, the department's BLS program operations manager, said in a news release. "Arkansas' jobless rate has fallen each month since December, after remaining fairly stable throughout most of 2016."

The U.S. unemployment rate was 4.5 percent in March, down from 5 percent in March 2016.

Arkansas' unemployment rate was 4.1 percent in March 2016.

The state was among four that posted record low unemployment rates in March. Colorado, Maine and Oregon also reported their lowest rates. At 2.6 percent, Colorado had the country’s lowest.

In all, the Labor Department said unemployment rates fell in 17 states in March and were mostly unchanged in 33. Employers added a significant number of jobs in just three states last month and cut them in four. 

Employment was mostly unchanged in the other 43 states. Hiring nationwide was weak in March but strong in the previous two months.

In Arkansas, growth was posted in seven major industry sectors, as four sectors declined. Among them:

  • Employment in educational and health services rose by 7,000, mostly in health care and social assistance (4,900). 
  • Professional and business services added 5,800 jobs.
  • Jobs in manufacturing rose by 2,600, with hiring in nondurable goods (3,700) more than offsetting losses in durable goods (1,100). 
  • Small increases occurred in trade, transportation and utilities (1,600), leisure and hospitality (1,500) and other services (1,300). 
  • Jobs in government fell by 2,100, with decreases in local (1,600) and state (500) government.

(The Associated Press contributed to this story.)

Tyson Foods Names Justin Whitmore Chief Sustainability Officer

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Tyson Foods Inc. of Springdale on Thursday named former McKinsey & Co. consultant Justin Whitmore to its newly created position of chief sustainability officer.

Whitmore, who will report directly to CEO Tom Hayes, will begin work May 1, the publicly traded meat processor said in a news release.

"Justin brings considerable operations experience to Tyson as well as an approach that breaks down barriers and unlocks the potential of teams," Hayes said. "We believe he will not only drive change at Tyson, but across our industry as he partners with the many important stakeholders in our supply chain and food system."

Tyson Foods announced the new post as part of a reorganized senior management team unveiled in February.

As CSO, Whitmore will lead the company's strategies to find profit while building a sustainable food system, aiming to deliver healthier food, animals, workplaces and environment. 

In a news release, the company said Whitmore "will provide leadership and direction that helps the company achieve its strategic intent of sustainably feeding the world with the fastest growing portfolio of protein packed brands." It said he will "collaborate across the organization in an effort to create efficiency and savings that can be reinvested in the business to fuel growth."

"I'm honored by Tyson Foods' confidence in me to serve as its first chief sustainability officer," Whitmore said. "This is a company I know and respect. I'm excited to contribute to its strong legacy of leadership as we take on the challenge of global food sustainability. I look forward to working closely with Tom and the entire Tyson team to continue to innovate and live out our purpose." 

Hayes emphasized the company's sustainability goals in a speech Tuesday at the Arkansas Economic Development Foundation luncheon.

The High Cost of Bad Moods (Barry Goldberg On Leadership)

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Research in behavioral science is showing that there is a trend toward higher irritability in the workplace — especially in the United States — and it has been more pronounced over the last 24 months. In short, more of us spend more time in a bad mood at work than ever before.

There are even healthy, if snarky, internet memes on the subject. In one, the comic strip character Calvin howls, “I’m in a very bad mood, so nobody’d better mess with me today, boy!!” Bad moods are generally the result of higher stress, lower satisfaction, elevated levels of fear (even if we do not have something specific to be afraid of) and an increase in feelings of powerlessness. Bad moods are also contagious, according to Scientific American. And in a business, bad moods are expensive. Consider these examples pulled from a recent organizational psychology study.

• The senior vice president of a bank’s branch operations is unhappy with a decision his boss made and takes his irritability into a meeting with a branch manager. She leaves the meeting feeling tentative and concerned for her job. When she declines to make a reasonable accommodation for a longtime customer, the customer’s family business moves to a competing bank.

• A surgeon with a reputation for being unapproachable arrives for surgery in a particularly bad mood. Surgical staff say nothing when the surgeon opens the wrong leg on a patient.

• A plant manager, angry about budget cuts, shortens his morning safety meeting. While the engineering staff is drawing straws about who will tell him about a maintenance issue that needs attention on one of the lines, a belt breaks and there are three serious injuries and one death.

What may be most discouraging about this normal human condition is that if we begin our day in a bad mood, we are likely to remain moody and unapproachable for the entire day. It takes a concerted effort to shake off a bad mood — and generally one of the conditions of our mood is that we feel no reason to need to change it.

But change it we can and change it we should. Going through the day in a bad mood is not positive for our performance or our career. And it can create rifts that take weeks, months, even years to get over. If you are the leader of an organization, failing to shake off a bad mood gives tacit permission for the entire organization to do the same. So, here are a few ways to shake off a bad mood:

Get outside! Even a five-minute walk outside, focusing more on the sky, birds, dogs and kids in a park, whatever nature offers can provide a reframe allowing the ability to let go of a foul temperament.

Oxygen is your friend. A few deep breaths are useful for clearing the body of stress-inducing hormones.

What am I really irritated about? A little time in consideration of the source of your irritation, anger, or discontent can be useful as well. It may be that the thing most driving your bad mood can be addressed constructively, but only if you identify it.

Does this all sound simplistic? A little on the “armchair shrink” side? Perhaps. But in the end, we are human beings. And as leaders in an organization we have an obligation to both model the behavior we want in others, and be the standard-bearer for the culture we aspire to create. If taking five minutes out to reset your own mood then prevents you from modeling poor behavior that often can lead to poor business outcomes, that might be the most important five minutes of your day.


I. Barry Goldberg is an executive coach with a global practice and runs CEO and key executive peer advisory groups in central Arkansas. Email him at Barry.Goldberg@EntelechyPartners.com.
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