Appendix A

Stakeholder Engagement

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Contents Public Forum: ...... 5 Visual Preference Survey ...... 6 Newspaper Headlines from the Future – Key Findings...... 12 Hot Springs or Not Springs Results ...... 13 Individual Exercise – Common Themes ...... 14 Interviews ...... 15 Public Open House ...... 15 Open Ended Responses...... 16 Parking/Transportation/Complete Streets ...... 16 Sidewalk Cafés ...... 17 Landscaping...... 17 Surrounding Neighborhoods ...... 17 Retail ...... 17 Downtown ...... 17 Historic Preservation ...... 17 Full Tally Count ...... 18 Steering Committee: ...... 19 Stakeholders (Focus Group and Interview Participants): ...... 19 Neighborhood Representatives: ...... 21 Partner Organizations: ...... 21

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Public Forum: The Project Team conducted a Community Public Forum through which all Hot Springs residents could express their opinions on various components affecting downtown Hot Springs, including aesthetics, features, and community goals. More than 85 community members attended and participated in the event. At the forum, participants were presented with several discussion topics and activities designed to elicit opinions for enhancing economic development in the community. TPMA facilitated a Visual Preference Survey in which each participant rated images on a -5 to +5 scale to convey preferences on aesthetics and quality of place. In another activity, public forum contributors had a chance to write their own newspaper headlines from the future. Participants acted as editors of the Sentinel-Record, projecting their ideas for how the newspaper headlines would read in the year 2025 on such topics as “Downtown News,” “Real Estate,” “Dining and Entertainment,” “Recreation and Sports,” “Living,” “Opinion,” “Education,” and “Economy.” This exercise was designed to showcase the community’s downtown redevelopment vision and outline realistic economic development goals for future implementation. TPMA also conducted an exercise called “Hot Springs or Not Springs.” The Project Team posted pictures of various Hot Springs assets to determine whether the community thinks they are valuable features (“Hot” Springs) or not (“Not” Springs). Finally, the Project Team directed an individual exercise through which participants could answer a questionnaire with such questions as “What do you like most about living in Hot Springs” and “If you had a magic wand and could change one thing, what would it be?” The results of the Community Public Forum are included below.

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Visual Preference Survey # Image Score Comments

+ Likes the modern styling, lighting

- Boring, flat, shiny, #1 1.25 sterile

+ Historic with modern, open space; graphic pattern is attention #2 1.47 grabbing - Diminishes the stature of humanity

+ Can walk by the water, grass; calming effect; residential next to water #3 2.27 - Looks unnatural, manufactured; uninteresting

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# Image Score Comments

+ Like the old with new + No trees; looks desolate; doesn’t #4 2.08 blend well

+ Space can be used for many events - Bricks could be made of more #5 3.39 natural substance

+ Perfect location of seating next to water, in the shade, lots of foliage #6 3.72

+ Likes the defined bike lane and has bike signals + Too commercialized; for cars, not for #7 -2.14 people

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# Image Score Comments

+ When lit, is interesting - Unfriendly, not organic #8 -0.14

+ Everyone liked this one; represents people living downtown #9 3.15 - Dark inside

+ Modern sculpture in a historic place; sun and shadows changing the visual appearance #10 1.58 constantly - Big, obtrusive

+ Inviting, aesthetically pleasing; form doesn’t detract from #11 physical 2.30 environment; separate areas for walkers and cyclists

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# Image Score Comments

+ Lots of people, fun; represents small business - Too much congestion #12 0.72

+ Likes the contemporary design - Doesn’t mesh; sticks out like a sore #13 0.65 thumb

- Boring, no view; looks “affordable”

#14 -1.10

+ Outdoor entertainment looks fun; can bring dog with #15 3.34

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# Image Score Comments

+ Lights are not intrusive or harm the integrity of the building #16 1.16

+ Represents festivals, greenway; has enough space to accommodate people #17 0.76

+ Creative, pretty - No light; buildings are close together

#18 2.11

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# Image Score Comments

+ Looks inviting; interesting architecture; looks like rooftop/outdoor #19 1.14 space - Too close to the busy street

+ Can eat outdoor with your dog - Not inviting

#20 1.04

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Newspaper Headlines from the Future – Stakeholder Responses

Downtown News: Living: • 7th Anniversary of Majestic Renovation • Organic Co-Op Opens to Rave Reviews Completed and At Full Capacity • Hot Springs Rated Most Walkable City in • Decades of Diligence Pays Off! Southern Region of U.S. • Record Tourist Season: 100% Hotel • Young Adults Flocking to Downtown Hot Occupancy! Springs • Arts Center Celebrates 8th Anniversary • Hot Springs, Model for Homelessness • Merchants Celebrate Record Sales Solutions • Arlington Renovation Nearing Completion Opinion Real Estate • Reasons Why Hot Springs is the #1 Place • Downtown Property at 95% Capacity to Live in Arkansas • Solar Powered Lofts Sold Out in Medical • Hot Springs Voted Best Small Town to Arts Building Raise a Family and Retire Alike • New Record Construction Starts in • Seed Sown in 2015 Historic Districts Has Community Borne Fruit in 2025! • Downtown Housing Values Skyrocket Education Dining and Entertainment • Completion of 4 Year University in • New Movie Theatre Opening Downtown Downtown Historical Building • Sellout Crowds at Performing Arts Center • Fifteen National Merit Semi-Finalists in • Newest Sidewalk Restaurant Opens County rd • Entertainment District Opens Dine-In • HSU Builds 3 Dormitory Downtown Theatre • Enrollment at NPCC Doubles • Former Students Return After Grad Recreation and Sports School • Multi-Use Park Hosting a Mountain Bike • ASMSA Enrollment Up Race Saturday Economy • Thermal Waterpark Celebrates Fifth Anniversary • Business Park Needs Added Space • Regional NCAA Softball Tournament • Downtown Business Owners Report Best Returns to Hot Springs with 5 Year Year Ever! th Extension • 10 High-Tech Company Relocates to Hot • Bike Lanes Connecting 3 Lakes Completed Springs Citing Quality of Life and Educated • Greenway Complete Workforce • Average Income Increasing

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Hot Springs or Not Springs Results

# Image Neutral Blank

1 100% 0% 0% 0%

2 100% 0% 0% 0%

3 31% 49% 17% 3%

4 95% 0% 0% 5%

5 85% 5% 0% 10%

6 63% 24% 3% 10%

7 85% 12% 0% 3%

8 92% 7% 0% 2%

9 90% 5% 0% 5%

10 85% 12% 0% 3%

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Individual Exercise – Common Themes

What do you like most about living • Parking and traffic • Limited economic opportunities and/or working in Hot Springs? • Lack of grocery store downtown • Community of good people • Negative influence from gaming (seedy • Artists and performers, events related to people). the arts, lots of entertainment options / • Increased crime things to do (festivals, hiking, lakes, etc.) • Drugs • History • Downtown congestion • Natural environment and natural beauty (lakes, mountains) • Small town feel Who are the three most influential • National Park • Diverse community people in the community? • Bathhouses • Steve Arrison • Ease of travel • Dorothy Morris • Rick Williams

• David Watkins What do you like least about living • Davis Tillman • Bill Solledor and/or working in Hot Springs? • Michelle Sestili • Infighting, bickering, negative assumptions of well-meaning people • Vacant and run-down buildings, If you had a magic wand and could infrastructure in state of disrepair • Lack of safe pedestrian and bike paths change one thing about Hot Springs, • Majestic hotel rubble what would it be? • Lack of leadership, poor management by • The Majestic city government, lack of vision, lack of • Clean up downtown / restore buildings standards for the deterioration of buildings • Restore or repurpose the upper floors that has been allowed to happen throughout downtown • Lack of support for local business • Create a performing arts venue • Not enough attention is paid to the history of the town

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Interviews: During on-site visits in April, May, and June 2015, TPMA, supported by Katie Myer, conducted dozens of interviews and focus groups, as well as two community input sessions, targeting a broad range of individuals and organizations involved in economic development, workforce development, and civic initiatives. Additionally, it was important to the Project Team to engage a wide cross section of the community to understand the challenges that Hot Springs faces from a variety of perspectives. To that end, interviews and focus groups were conducted with a Young Professionals Group, the four key neighborhood associations surrounding downtown Hot Springs, and various other merchants, developers, and education partners. The purpose of this broad stakeholder engagement was to identify Hot Springs strengths and challenges as well as future opportunities for the downtown district. The interviews also collected information on perceptions and issues that would impact future development. These interviews served as a tremendously beneficial source of information, and this strategy could not have been developed without the input of the many individuals involved. A full list of interviewees is located in Appendix I. Public Open House On July 2, nearly 300 people, Hot Springs visitors, downtown residents, and those who live in surrounding areas, took part in a 12-hour open house aimed at gathering their ideas for how to revitalize the downtown and make it more attractive to tourists, downtowners and area residents. Concepts were explained and input from several hundred attendees was taken in the form of a survey and open-ended written responses.

Attendees were asked to rank what amenities they felt the downtown needed to revitalize the area and make it an area they would more often visit. Common themes developed throughout response both in the survey and the open-ended writings. Top Survey Results Among more than 40 different options for consideration in the downtown area, the following three appeared in the top 10 responses across all three types of respondents (downtown resident, area resident, and visitor).

• Free parking • The addition of family restaurants • Biking/walking trails

Appearing to two of the three Top 10s

Visitor & Regional Resident

• Live Entertainment

Regional Residents and Downtown Residents

• Performing Arts Center • Sidewalk Cafes • Convenience/Grocery Store

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Full top 10 results for all three types of respondents

Visitors Tallies Regional Residents Tallies Downtown Residents Tallies Convenience/Grocery Museums/Attractions Free Parking 96 83 Store 161 Drug Free Parking Performing Arts Center 88 74 Store/Pharmacy/Sundries 88 Sidewalk Cafes 85 Bike/Walking Trails 63 Bike/Walking Trails 79 Performing Arts Center 81 Museums/Attractions 62 Free Parking 66 Boutique Hotels 77 Live Entertainment 62 Sidewalk Cafes 65 Public Restrooms 68 Family Restaurants 61 Coffee Shops 59 Live Entertainment 67 Sidewalk Cafes 59 Dry Cleaners/Laundry 57 Convenience/Grocery Convention quality hotels Farmers Market 66 Store 56 55 Family Restaurants 64 Fine Dining Restaurants 48 Family Restaurants 48 Bike/Walking Trails 62 Farmers Market 41 Performing Arts Center 44

Key: Top 5 responses highlighted Repeating Items Bolded for ease of view Underlined means item appears in the top 10 of all three categories Italics means item appears in top 10 of two of the three categories

Open Ended Responses Parking/Transportation/Complete Streets Parking issues in the downtown and the need to free the streets of parking spots to allow for complete street (bike lanes, rain gardens, wider sidewalks that accommodate more pedestrians, outdoor café space, and less congestion) dominated the list across all three types of respondents. Free Parking was the top vote getter for area residents who stated they would be much more apt to come downtown if there were easier ways to park. Many respondents suggested free circulating trolleys to provide transportation from downtown parking gardens to areas of interest around downtown. Some also suggested trolleys to serve neighborhoods surrounding downtown to encourage ease of access to build up support of the business community in the downtown. One respondent commented that the goal of downtown should be as a destination, not a thoroughfare and emphasized the importance of completing planned work around Hot Springs to allow those looking to get from one side of town to another a better way of doing that than driving through Downtown.

16 | Page Sidewalk Cafés this process would result in attracting higher-end retail and less novelty souvenir shops. One Many commenters wrote they desired more resident even commented that the area as a whole options to dine alfresco in the natural beauty of was aiming at the wrong demographic for tourism the Hot Springs area. Having more restaurants with as the respondent pushed for the area to be a draw outdoor dining options would make the area more more akin to Santa Fe, New Mexico with its beauty attractive for visitors and residents to spend time and arts scene rather than what they perceived to and money. be Hot Spring’s analog, a place like Branson, Landscaping Missouri. Respondents suggested more thought be put into Downtown the plants that line city streets. Trees should be Respondents urge ideas brought about during this trimmed to accentuate the area’s historic buildings process come through to fruition to make the and kept from obscuring their unique architecture. downtown a place that would attract young Others asked for a concerted effort to keep professionals, both natives and others. landscaping up and pull plants that are dead or dying. Others also asked for rain gardens to be One respondent wrote: “Give locals, as well as included in the streetscape. visitors, reasons to make downtown their go-to place. More restaurants and entertainment. Surrounding Neighborhoods Expand the Farmer’s market, and renovate these The neighborhoods that surround downtown are a beautiful buildings.” hot button issue for many respondents. There is a A large assortment of other respondents called for perception of those areas and parts of Downtown parks and splash pads to be incorporated as being high crime. Many respondents stated they throughout the downtown and surrounding areas usually avoid Downtown because they have a to attract young families. perception of a lack of safety in those areas.

The underlying beauty of the neighborhoods Historic Preservation surrounding downtown was noted by many of the The preservation and revival of Hot Springs’ unique respondents who expressed a desire for programs architecture was a popular topic in the open ended to be put in place to deal with absentee owners responses. Many who attended the Open House whose property has fallen into disrepair and to stated they did so as a way to see the Medical Arts better market existing incentives for owners to fix Building, a structure numerous respondents up their properties. One even requested a tax be feared could end up with a similar fate as the levied to create a revolving loan fund that home Majestic. owners in the surrounding areas can borrow from Respondents wanted open dialogue between the to renovate their properties. city and property owners to help them find funds Retail to help save the grand buildings and find new tenants for them. Numerous respondents lamented the type of retail that existed throughout the downtown and hoped

Full Tally Count

Visitors Tallies Regional Residents Tallies Downtown Residents Tallies

Museums/Attractions 96 Free Parking 83 Convenience/Grocery Store 161 Free Parking 88 Performing Arts Center 74 Drug Store/Pharmacy/Sundries 88 Sidewalk Cafes 85 Bike/Walking Trails 63 Bike/Walking Trails 79 Performing Arts Center 81 Museums/Attractions 62 Free Parking 66 Boutique Hotels 77 Live Entertainment 62 Sidewalk Cafes 65 Public Restrooms 68 Family Restaurants 61 Coffee Shops 59 Live Entertainment 67 Sidewalk Cafes 59 Dry Cleaners/Laundry 57 Convention quality hotels 66 Convenience/Grocery Store 56 Farmers Market 55 Family Restaurants 64 Fine Dining Restaurants 48 Family Restaurants 48 Bike/Walking Trails 62 Farmers Market 41 Performing Arts Center 44 Convenience/Grocery Store 60 Public Restrooms 39 Live Entertainment 43 Art Galleries 47 Convention quality hotels 38 First Run Movie Theater 42 First Run Movie Theater 42 Art House Movie Theater 38 Quick Serve Restaurants 34 Fine Dining Restaurants 41 First Run Movie Theater 37 Bars/Taverns 33 Wayfinding signage 37 Meeting/Special Event Space 36 Art House Movie Theater 30 Art House Movie Theater 36 Coffee Shops 31 Bookstores 24 Drug Store/Pharmacy/Sundries 32 Bars/Taverns 29 Meeting/Special Event Space 23 Bars/Taverns 30 Boutique Hotels 27 Fine Dining Restaurants 22 Coffee Shops 28 Festival Grounds 27 Museums/Attractions 20 Bookstores 28 Art Galleries 26 Public Restrooms 18 Drug Farmers Market Festival Grounds 28 Store/Pharmacy/Sundries 25 17 Bed & Breakfast 26 Quick Serve Restaurants 21 Hobby/Special Interest Stores 15 Meeting/Special Event Space 23 Nightclubs 20 Nightclubs 14 Festival Grounds 22 Bookstores 19 Clothing Stores 13 Nightclubs 21 Wayfinding signage 19 Art Galleries 12 Hobby/Special Interest Stores 18 Dry Cleaners/Laundry 18 Boutique Hotels 8 Dry Cleaners/Laundry 16 Clothing Stores 17 Wayfinding signage 8 Souvenir Shops 16 Hobby/Special Interest Stores 16 Convention quality hotels 7 Quick Serve Restaurants 14 Bed & Breakfast 10 Bed & Breakfast 4 Clothing Stores 12 Souvenir Shops 6 Jewelry Stores 4 Jewelry Stores 3 Jewelry Stores 3 Souvenir Shops 2

OTHERS: Safety (1), baths (1), OTHERS: Safety (1), water stations (2), bathhouse (1), multicultural center (1), OTHERS: Safety (1), Bakeries (1), opera house (1), record store (1), aquarium (1), WiFi (1), high Downtown residences, to multicultural center (1), WiFi (1), end retail (2), downtown lease/own (1), med-high end high end shopping (2), Innovation residences (to lease or own) retail (2) center (ASMSA) (1), mom & pop (1), mom & pop shops (1) stores (1), street art (1)

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Steering Committee: Name Title, Organization Vicki Anderson Community Grant Coordinator, West Central Arkansas Planning and Development District Robert Tucker Study Director, Tri-Lakes Metropolitan Planning Organization Cole McCaskill Downtown Development Director, Greater Hot Springs Chamber of Commerce Daniel Messplay Planner, City of Hot Springs Christi Batts Executive Director, Henderson State University – Hot Springs Jean Lacefield Vice President, Gateway Community Association Dwayne Pratt Executive Director, West Central Arkansas Planning and Development District

Stakeholders (Focus Group and Interview Participants): Name Title, Organization David French DHSI, Architect Steve DeSalvo President, DHSI Steve DeMott DHSI, Hot Springs Title Company, Hilltop Manor Mark Fleischner DHSI, Owner of Lauray’s The Diamond Center Dave Reagan County Justice of the Peace - Downtown District Don Gooch President, DT Bank, Arvest Bank Bob Kempkes Architect, TKZ Partner Robert Zunick TKZ Partner Rick Williams Owner, Atrium at Serenity Pointe Brian Gehrki Principal Broker, Gehrki Commercial Real Estate Jonathan Bibb Administrator, Arkansas Career Training Institute Dr. John Hogan President, National Park Community College Tom Gattin Henderson State University (retired) Christi Batts Director, HSU Hot Springs Corey Alderdice Director, ASMSA Jim Fram CEO, Greater Hot Springs Chamber of Commerce Forrest Spicher Chairman, Hot Springs Chamber, Bank President Brian Hill Chairman, HSMP Steve Arrison CEO, Visit Hot Springs, CVB, A&P Commission Jordan Bennett Owner/Operator, Bennett’s Plumbing LLC Image Manager, Greater Hot Springs Chamber of Lacey Garner Commerce Leah Hasley Director, ASBTDC at Henderson State University Business Development, Gehrki Commercial Real Brandon Spicher Estate Dwayne Pratt WCAPDD David Moore WCAPDD

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Name Title, Organization Lance Spicer City Clerk Suzanne Davidson City Director, District 1, City of Hot Springs Planning and Development Director, City of Hot Kathy Sellman Springs Lisa Carey Owner, All Things Arkansas, All Things Natural Owner of 3 downtown stores, former city Cynthia Keheley director Missy McSwain Director, Arkansas Historic Preservation Program Ken Wheatley Property owner and former CBID Commissioner Josie Fernandez Superintendent of Hot Springs National Park Tom Gatin Henderson State University Governmental Affairs Committee, Village of Hot Jerry Yeric Springs President, Women’s Chamber of Commerce of Lauri Adams Hot Springs Tiffany Tucker Attorney Vice President, Greater Hot Springs Chamber of Betsy Atkins Commerce Rick Davis Garland County Judge Dave Reagan County Justice of the Peace - Downtown District Executive Director, West Central Planning & Dwayne Pratt Development District President, Whittington Valley Neighborhood Mark Toth Association John Lewis AutoCAD Drafter, City of Hot Springs Denny McPhate Public Works, City of Hot Springs Mayor Ruth Carney Mayor, City of Hot Springs Larry Williams Director, District 4, City of Hot Springs Jean Wallace City Parks and Trails Director Eric Jackson General Manager, Oaklawn Park Director of Information Systems, City of Hot Jeff Winter Springs David Watkins City Manager Brian Albright City Attorney Ed Davis Fire Chief, City of Hot Springs David Twiggs COO, Village of Hot Springs Dorothy Morris President, Morris Foundation Randy Fale Director, District 6, City of Hot Springs Bill Burrough Deputy City Manager, City of Hot Springs Economic Development Manager, Greater Hot Megan Greeson Springs Chamber of Commerce Harv Shelton President, Village of Hot Springs Director of Placemaking and Design, Village of Dr. Yang Luo Hot Springs

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Neighborhood Representatives: Representative Neighborhood Association Cindy Rogers Park Avenue Community Association Angie Gammill Park Avenue Community Association Thomas Anderson Gateway Community Association Jean Lacefield Gateway Community Association Mark Toth Whittington Valley Neighborhood Association John Lewis Whittington Valley Neighborhood Association Cynthia Keheley Quapaw-Prospect Neighborhood Association

Partner Organizations: Organization City of Hot Springs Greater Hot Springs Chamber of Commerce Hot Springs Metro Partnership Park Avenue Community Association Gateway Community Association Whittington Valley Neighborhood Association Quapaw-Prospect Historic District Neighborhood Association Downtown Merchants West Central Arkansas Planning and Development District Downtown Hot Springs Initiative Women’s Chamber of Commerce of Hot Springs Broadband Leadership Group The Young Professionals Group Hot Springs National Park Arkansas School for Mathematics, Sciences and Arts Henderson State University-Hot Springs National Park College

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Contents Executive Summary ...... 5 Demographics ...... 5 Industry Analysis ...... 5 Occupation Analysis ...... 6 Conclusions and Recommendations ...... 6 Introduction ...... 8 Demographics ...... 9 Industry Analysis ...... 12 Overview ...... 12 High-Employment Industries ...... 14 High-Growth Industries ...... 14 Projected-Growth Industries ...... 17 Industry Concentration ...... 18 Industry Competitiveness ...... 18 Key Industries ...... 20 Occupation Analysis ...... 24 Overview ...... 24 High-Employment Occupations ...... 25 High-Growth Occupations ...... 26 Projected Growth Occupations ...... 27 Key Occupations ...... 30 Conclusions and Recommendations ...... 31 Data Validation ...... 31 Workforce Composition Strategies ...... 31 Entrepreneurism and Innovation ...... 32 Health Care Cluster: Healthcare Industries and Occupations...... 32 Tourism Cluster: Accommodation and Food Service Industries ...... 32 Promising Industries: Aerospace Manufacturing and Consulting Services ...... 33

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Executive Summary Demographics Hot Springs’ population is growing at a slightly slower rate than the Key Industries national average (0.7% compared to 0.9%), yet its population is with 2014 Employment aging slower than average (0.1% compared to 0.4%). The Hot (grouped by Springs labor force includes approximately 40,000 individuals, but industry sector) the labor force has shrunk by about 4.5% since 2005. As of December 2014, the unemployment rate is 6.4%, approximately 0.2% higher than the national average. The region is a net importer General Medical of workers. and Surgical Hospitals 1,948 Entrepreneurism is more concentrated in the region than the state or nation; approximately 7.7% of the Hot Springs population Offices of Physicians identifies as self-employed compared to 6.4% of the state 1,365 population and 6.2% of the national population. Hot Springs’ entrepreneurial capacity is not translating into innovation, however, based on the number of patents filed within the region. Individual and Family Services Between 2005 and 2013, 54 patents were awarded in Hot Springs, 1,123 which is significantly lower than the national average of 2,235 patents per metropolitan statistical area over the same time period. Nursing Care Facilities (Skilled Nursing Facilities) Industry Analysis 807 Hot Springs produced $2.9 billion in economic activity (gross regional product or GRP) and employed nearly 41,500 workers in Restaurants and 2014. Health Care and Social Assistance is Hot Springs’ largest Other Eating Places industry sector, accounting for over 15.4% of the GRP and 18.7% 4,035 of total employment. Other high-GRP, high-employment sectors include Government, Retail Trade, and Accommodation and Food Spectator Sports Services. 637 Hot Springs is a net importer of goods and services, which means that it consumes more than it produces. In 2013, Hot Springs Traveler Accommodation exported $3.4 billion in goods and services, while imports totaled 845 $4.6 billion. Net export industries form a region’s economic base by drawing new foreign and domestic revenue into the economy. Aerospace Product and Parts Hot Springs’ base industry sectors are Health Care and Social Manufacturing Assistance, Retail Trade, and Accommodation and Food Services. 630 TPMA identified 10 industries that are key to the health and future growth of the Hot Springs region based on factors such as employment, growth rates, concentration, competitiveness, and Management, Scientific, and wages. Together, these industries employ 12,091 workers, with Technical Consulting Services the creation of an additional 564 jobs projected by 2024. 701

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Occupation Analysis Hot Springs’ workforce is concentrated within three job families: Key Occupations Office and Administrative Support Occupations (with 14.3% of with 2014 Employment total employment), Sales and Related Occupations (14.1%), and Food Preparation and Serving Related Occupations (11.6%). Wages in all three of these job families are relatively low, beneath Registered Nurses 1,043 the average hourly wages for the region ($17.49), the state ($17.65), and the nation ($21.68). Nursing Assistants TPMA identified six occupations that are key to the health and 931 future growth of the Hot Springs region. These industries were selected based on one or more factors, including: based on total Personal Care Aides employment, past and projected growth, industry concentration, 655 competitive advantage, average wages, relationship between industries, and strategic importance. Home Health Aides 465 All of the key occupations fall within Healthcare-related job families. Together, these six occupations account for a little over Licensed Practical and 3,600 jobs, with an additional 446 jobs expected by 2024. These Licensed Vocational Nurses occupations are high-growth fields, a trend which is expected to 473 continue over the next decade. Conclusions and Recommendations Workforce Composition Strategies: In the long-term, the overall age of the workforce and the impending retirement of the Baby Boomer generation will present workforce challenges. Hot Springs should proactively develop workforce composition strategies to address these challenges before they negatively impact the region’s ability to meet local labor demand.

Entrepreneurism and Innovation: Hot Springs has a relatively high concentration of entrepreneurs, but wages are low and the region’s entrepreneurial capacity is not translating into innovation. This may indicate the region’s entrepreneurial capacity and human capital is not being maximized. Hot Springs should further evaluate the breadth and depth of entrepreneurism in the region and craft programs and policies that encourage innovation.

Health Care and Nursing: These industries and occupations form the backbone of Hot Springs’ economy and are especially critical for meeting the demand for medical services of Hot Springs Village. These occupations do serve an important role as the entryway into Health Care and Nursing, and economic and workforce development efforts should focus on the development of stackable and latticed career pathways and identifying opportunities for advancement in these fields.

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Tourism and Hospitality: The jobs associated with tourism and hospitality are generally low-skill, low- wage; however, having a large workforce in these areas is critical for attracting tourists and their spending dollars. The cultivation of a vibrant and attractive downtown is crucial to Hot Springs’ identity and brand, as well as the quality of life for residents and the attraction of the creative class.

Aerospace Manufacturing and Consulting Services: This industry has experienced a high rate of growth and added a significant number of jobs over the past 10 years. Although employment is projected to decline slightly over the next decade, Hot Springs has a high concentration in this industry and has a competitive advantage in this type of manufacturing, which indicates the downward trend may be reversible if the proper policies and programs are identified. The attraction of a few more businesses in this industry could provide a substantial boost to employment in Aerospace Products and Parts Manufacturing.

Management, Scientific, and Technical Consulting Services: This is an upstart industry that has grown tremendously over the past decade. Hot Springs has a competitive advantage in this industry, specifically in the Marketing Consultants subsector. Given the right environment and incentives, it is possible that Hot Springs could attract new Management, Scientific, and Technical Consulting Services firms and jobs to the region.

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Introduction Purpose This Demographic and Socio-Economic Analysis report evaluates key features and trends of the Hot Springs region, including employment by industry and occupations. Its purpose is to inform the Downtown Redevelopment Strategy by providing an understanding of the current state of Hot Springs’ base industries and labor markets, how they have evolved over the last 10 years, and how they are positioned for the future. TPMA assessed Hot Springs’ largest employment sectors, past industry growth, projected future growth, industry concentration as compared to Arkansas and the nation, and industry competitiveness with respect to national trends. TPMA analyzed data at the NAICS 2-Digit and 4-Digit levels in order to provide an accurate assessment of both the broad industry sectors and their specific commercial activities for accurate economic development planning. TPMA also analyzed occupational data at the 4-Digit SOC Code level to identify trends, including the size of the largest occupations, their past growth and projected growth for the future, the education and training needed for the top occupations, and the average wages of the highest-paying occupations in Hot Springs. Region of Analysis The region analyzed in this report includes the Hot Springs, AR Metropolitan Statistical Area unless otherwise indicated, and all data and statistics presented throughout this report are limited to that area. When relevant, this report also includes comparative statistics and data analysis for the state of Arkansas and the United States. Data Unless otherwise noted, all data and statistics used in this report are as of 2014 (the most current year for confirmed data) and are sourced from Economic Modeling Specialists Intl. (EMSI) version 2015.1, which compiles data from a variety of federal, state, and private data sources. EMSI projections are backwards- looking, meaning that future projections are partially based upon 15-year trends and may not accurately predict real-time demand. Therefore, it will be crucial to update projections on a regular basis and to confirm employer demand and workforce requirements frequently.

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Demographics Population Hot Springs’ population grew by an Total Population average of 640 people per year for Hot Springs' Population is Slowly Growing a total increase of 6.2% since 2005. With an average annual growth rate 102,000 of 0.7%, Hot Springs is growing 100,000 slightly slower than the nation, 98,000 96,000 which grew by 0.9% per year on 94,000 average over the past 10 years. Hot 92,000 Springs’ population is projected to 90,000

continue growing, albeit at a slower

2013 2006 2007 2008 2009 2010 2011 2012 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 rate of 0.3% per year, over the next 2005 decade. Age Hot Springs’ average age is 42.5 years, significantly older than the nation at 38.2 years. Both Hot Springs and the nation are ageing; however, Hot Springs’ population is ageing at slower pace with an average increase in age of 0.1% per year compared to 0.4% for the nation. Median Income The median household income in Hot Springs was $39,748 as of 2013 (the most recent year for which data is available), significantly lower than the nation at $52,176. Income has decreased by 1.4% per year on average since 2006.

Median Household Income (2013 $) Hot Springs' Income is Declining

$45,000 $44,000 $43,000 $42,000 $41,000 $40,000 $39,000 $38,000

$37,000

2009 2006 2007 2008 2010 2011 2012 2013

Source: U.S. Census Bureau, 3-Year American Community Surveys, 2006-13

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Labor Force Hot Springs’ labor force includes just under 40,000 workers (employed and unemployed); however, the labor force shrank by approximately 4.5% since 2005. The labor force has decreased by approximately 0.5% per year on average over the past 10 years, which is significantly slower than the nation’s labor force growth rate of 0.9%.

Total Labor Force Hot Springs' Labor Force is Slowly Decreasing

44,000 42,000 40,000 38,000 36,000 34,000 32,000 30,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Employment Unemployment

As of December 2014, the unemployment rate in Hot Springs is 6.4%, which is slightly higher than the national rate of 6.2%. In total, just over 2,500 workers are unemployed in the region. Although unemployment has still not recovered to its pre-recession levels, it has improved from the 2013 rate of 7.7%. At its peak in 2011, unemployment was at 8.8% in 2011. Commuting Hot Springs is a net importer of workers. In 2011 Commuting Inflows and Outflows (the most recent year for which data is Hot Springs is a Net Importer of Workers available), approximately 12,400 workers commuted into Hot Springs for their primary job, while around 11,000 lived in the region but commuted out for work. Nearly 20,800 people both lived and worked in Hot Springs.

Source: U.S. Census Bureau, On the Map, 2011

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Entrepreneurism and Innovation Entrepreneurism and innovation are critical for a region’s economic growth, competitiveness, and vitality. Hot Springs has a relatively high concentration of entrepreneurs, based on the proportion of self- employment (a common proxy variable for entrepreneurism) in the region: approximately 7.7% of workers in Hot Springs (3,185 workers) considered themselves self-employed in 2014, compared to 6.4% in Arkansas and 6.4% at the national level1. With average hourly earnings of $13.49, however, Hot Springs’ entrepreneurs earn less than their peers at the state ($14.23) and national ($16.04) levels. This may indicate the region’s entrepreneurial capacity and human capital is not being maximized.

Hot Springs’ entrepreneurial capacity is not translating into innovation, however, based Patent Assignees Residing in Hot Springs on the number of patents filed within the Number of Patents region (a common proxy variable for First-Named Assignee 2005 - 20132 gauging innovation).3 Between 2005 and Individually Owned Patents 15 2013, 54 patents were awarded in Hot Baxley Equipment Co. 5 Springs, which is significantly lower than Smith Abrasives, Inc. 4 the national average of 2,235 patents per Worksoft, Inc. 4 metropolitan statistical area over the same Scroll Technologies, Inc. 3 time period. The absence of major research Smith's Consumer Products, Inc 3 universities or research or technical parks Cummins-Allison Corporation 2 may be a factor in the region’s low rate of patenting. Carrier Corporation 1

The most common technologies patented were: Abrading (with 7 patents between 2005 and 2013), Data Processing: Software Development, Installation, and Management (4 patents); Conveyors: Power-Driven (3 patents); and Rotary Expansible Chamber Devices (3 patents). The companies that have filed for patents over eight years are listed in the table above.

1 Wennekers, S. and Thurik, R. (1999), Linking Entrepreneurism and Economic Growth. Small Business Economics, 13: 27-55; Low, S., Henderson, J., and Weiler, S. (2005), Federal Reserve Bank of Kansas City, Economic Review, 3rd Quarter: 61-89. 2 Listings and counts consider only the first-listed (i.e., first-named) assignees appearing on each issuing patent. Please note that an estimated 3 to 4 percent of patents with listed assignees have more than one assignee. See http://www.uspto.gov/web/offices/ac/ido/oeip/taf/cbsa_asg/explan_cbsa_asg.htm for more information.

3 J. Acs, Z. and Audretsch, D. B. (1989), Patents as a Measure of Innovative Activity. Kyklos, 42: 171–180.

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Industry Analysis Overview Hot Springs produced $2.9 billion in economic activity (gross regional product or GRP) and employed nearly 41,500 workers in 2014. Health Care and Social Assistance is Hot Springs’ largest industry sector, accounting for over 15.4% of the GRP and 18.7% of total employment. Other high-GRP, high-employment sectors include Government, Retail Trade, and Accommodation and Food Services. The Manufacturing, Real Estate and Rental and Leasing, and Finance and Insurance sectors are relatively less labor-intensive and are able to produce a disproportionate impact on the economy given their comparatively small share of the workforce. Gross Regional Product and Employment by Industry Sector

2014 GRP 2014 Employment

NAICS Sector % of Sector % of Code Industry Sector GRP Total Employment Total

62 Health Care and Social Assistance $444,636,470 15.4% 7,750 18.7%

90 Government 326,586,960 11.3% 4,995 12.0%

31 Manufacturing 301,634,561 10.5% 2,705 6.5%

44 Retail Trade 293,361,388 10.2% 6,018 14.5%

53 Real Estate and Rental and Leasing 264,729,339 9.2% 565 1.4%

52 Finance and Insurance 171,500,858 6.0% 1,171 2.8%

23 Construction 152,243,920 5.3% 2,772 6.7%

72 Accommodation and Food Services 141,746,861 4.9% 5,103 12.3%

42 Wholesale Trade 123,500,382 4.3% 942 2.3%

Professional, Scientific, and 54 117,086,434 4.1% 1,766 4.3% Technical Services

Administrative and Support and 56 Waste Management and 88,673,038 3.1% 1,817 4.4% Remediation Services

Other Services (except Public 81 76,407,727 2.7% 2,289 5.5% Administration)

Mining, Quarrying, and Oil and Gas 21 66,707,701 2.3% 173 0.4% Extraction

Arts, Entertainment, and 71 66,552,421 2.3% 1,620 3.9% Recreation

11 Crop and Animal Production 62,775,183 2.2% 297 0.7%

48 Transportation and Warehousing 54,613,498 1.9% 631 1.5%

51 Information 51,681,148 1.8% 403 1.0%

22 Utilities 45,274,869 1.6% 118 0.3%

Management of Companies and 55 18,151,619 0.6% 142 0.3% Enterprises

61 Educational Services 11,388,151 0.4% 186 0.4%

Total $2,879,252,527 100.0% 41,463 100.0%

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Hot Springs is a net importer of goods and services, which means that it consumes more than it produces. In 2013, Hot Springs exported $3.4 billion in goods and services, while imports totaled $4.6 billion. Net export industries form a region’s economic base by drawing new foreign and domestic revenue into the economy, which in turn support resident-serving industries. Hot Springs’ top base industry sectors are Health Care and Social Assistance, Retail Trade, and Accommodation and Food Services. The Healthcare and Social Assistance industry sector was the largest net exporter, accounting for 10.9% of total exports, but only 2.6% of the total imports. Hot Springs consumed $6.6 billion in goods and services in 2013, with imports accounting for 69.9% of the demand, while the remaining 30.1% of the region’s demand was met locally.

Net 2013 Exports by Industry Sector NAICS Code Industry Sector Exports Imports Net 62 Health Care and Social Assistance $365,254,540 $120,622,295 $244,632,245 44 Retail Trade 239,217,759 113,372,241 125,845,518 72 Accommodation and Food Services 137,243,012 54,739,738 82,503,274 11 Crop and Animal Production 127,050,246 55,972,939 71,077,307 71 Arts, Entertainment, and Recreation 72,322,571 33,128,665 39,193,906 Other Services (except Public 81 63,083,913 45,659,486 17,424,427 Administration) Mining, Quarrying, and Oil and Gas 21 72,690,826 56,748,493 15,942,333 Extraction 23 Construction 114,261,270 129,758,422 (15,497,151) Administrative and Support and 56 Waste Management and 55,183,836 71,485,005 (16,301,169) Remediation Services 22 Utilities 37,969,159 60,366,445 (22,397,286) 61 Educational Services 9,689,698 63,379,763 (53,690,065) 48 Transportation and Warehousing 69,209,511 134,583,577 (65,374,067) 53 Real Estate and Rental and Leasing 139,845,626 205,459,715 (65,614,088) Management of Companies and 55 24,881,256 93,260,117 (68,378,861) Enterprises 42 Wholesale Trade 119,339,164 219,927,112 (100,587,948) Professional, Scientific, and Technical 54 77,369,755 232,721,030 (155,351,275) Services 52 Finance and Insurance 125,935,729 288,999,748 (163,064,019) 51 Information 18,726,504 202,779,089 (184,052,585) 31 Manufacturing 682,298,996 981,031,473 (298,732,477) 90 Government 808,276,706 1,454,466,857 (646,190,151) Total $3,359,850,077 $4,618,462,209 ($1,258,612,132)

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High-Employment Industries The 10 largest industries by total employment account for 36.7% of Hot Springs’ total employment. The Restaurants and Other Eating Places industry is Hot Springs’ largest industry, employing just over 4,000 workers (9.7% of the workforce). Other top employers are the General Medical and Surgical Hospitals industry (4.7%) and the Education and Hospitals (Local Government) industry (4.3%). Although industries such as Restaurants and Other Eating Places and Education and Hospitals (Local Government) account for a large portion of employment, they are either low-skill, low-wage jobs (workers at restaurants averaged only $14,242 in 2014) or they are not suited towards local economic development efforts (it is not usually feasible to attract more government jobs).

High-Employment Industries

NAICS Code Industry 2014 Jobs % of Total

7225 Restaurants and Other Eating Places 4,035 9.7% 6221 General Medical and Surgical Hospitals 1,948 4.7%

9036 Education and Hospitals (Local Government) 1,790 4.3%

4529 Other General Merchandise Stores 1,372 3.3%

6211 Offices of Physicians 1,365 3.3%

6241 Individual and Family Services 1,123 2.7%

9039 Local Government, Excluding Education and Hospitals 1,113 2.7%

7211 Traveler Accommodation 845 2.0%

2382 Building Equipment Contractors 832 2.0%

6231 Nursing Care Facilities (Skilled Nursing Facilities) 807 1.9%

High-Growth Industries Management, Scientific, and Technical Consulting Services was Hot Springs’ fastest-growing industry, with an 805.0% increase in employment over the past 10 years. Other high-growth industries include Computer Systems Design and Related Services (with a 344.7% increase) and Office Administrative Services (with an increase of 201.1%).

High-Growth Industries NAICS Employment 2005 - 2014 Code Change % Change Industry 5416 Management, Scientific, and Technical Consulting Services 623 805.0%

5415 Computer Systems Design and Related Services 142 344.7%

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5611 Office Administrative Services 105 201.1%

6116 Other Schools and Instruction 53 199.0%

6117 Educational Support Services 31 180.8%

4541 Electronic Shopping and Mail-Order Houses 21 179.6%

6219 Other Ambulatory Health Care Services 103 155.2%

7224 Drinking Places (Alcoholic Beverages) 31 155.1%

3121 Beverage Manufacturing 84 153.9%

3279 Other Nonmetallic Mineral Product Manufacturing 56 140.0%

Industries with high-growth rates do not always correspond with significant jobs gains, since the addition of even one job has a disproportionate impact on the growth of a low-employment industry. For example, there were only 17 employees in the Educational Support Services industry in 2005, so the creation of 31 additional jobs means this industry grew by 180.8% over the past 10 years. So, while this this industry is one of the fastest-growing in Hot Springs, it is not significant in terms of total employment.

Conversely, industries that already employ a large proportion of the workforce tend to be underrepresented when evaluating growth strictly in terms of percent change. For example, Restaurants and Other Eating Places grew relatively slowly over the past 10 years (25.9%); however, this industry ranked first in terms of total new jobs created during this time period, with 830 new jobs.

Industries with Significant Job Gains

NAICS Employment 2005 - 2014 Code Industry Change % Change

7225 Restaurants and Other Eating Places 830 25.9%

5416 Management, Scientific, and Technical Consulting Services 623 805.0%

6241 Individual and Family Services 446 65.8%

6231 Nursing Care Facilities (Skilled Nursing Facilities) 226 38.9%

3364 Aerospace Product and Parts Manufacturing 214 51.3%

9029 State Government, Excluding Education and Hospitals 202 45.5%

6211 Offices of Physicians 184 15.6%

5415 Computer Systems Design and Related Services 142 344.7%

4411 Automobile Dealers 135 28.3%

5242 Agencies, Brokerages, and Other Insurance Related Activities 118 37.2%

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High-growth industries that also added a significant number of jobs included the Management, Scientific, and Technical Consulting Services industry (805.0% growth with 623 jobs) and the Computer Systems Design and Related Services industry (344.7% growth with 142 jobs).

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Projected-Growth Industries Projections for Hot Springs’ fastest-growing industries over the next 10 years include the Support Activities for Animal Production industry (with an expected employment increase of 90.2%), the Scheduled Air Transportation industry (with an 83.7% increase), and the Metalworking Machinery Manufacturing industry (with a 67.7% increase). Although these three industries are expected to grow rapidly, none are expected to add a significant number of new jobs.

Projected-Growth Industries NAICS Employment 2014 - 2024 Code Industry Change % Change

1152 Support Activities for Animal Production 20 90.2%

4811 Scheduled Air Transportation 17 83.7%

3335 Metalworking Machinery Manufacturing 21 67.7%

3279 Other Nonmetallic Mineral Product Manufacturing 57 59.8%

6223 Specialty (except Psychiatric and Substance Abuse) Hospitals 11 57.3%

5415 Computer Systems Design and Related Services 103 56.2%

5615 Travel Arrangement and Reservation Services 14 51.9%

Community Food and Housing, and Emergency and Other Relief 6242 40 51.4% Services

5613 Employment Services 266 50.7%

5416 Management, Scientific, and Technical Consulting Services 319 45.6%

Industries that are projected to experience fast-growth and a significant increase in the number of new jobs include Employment Services (with an anticipated growth rate of 50.7% and an increase of 266 jobs) and Management, Scientific, and Technical Consulting Services (with a 45.6% projected growth rate and 319 new jobs).

Industries with Significant Projected Job Gains NAICS Employment 2014 - 2024 Code Industry Change % Change

7225 Restaurants and Other Eating Places 435 10.8% 6221 Management, Scientific, and Technical Consulting Services 319 45.6%

9036 Employment Services 266 50.7%

4529 Individual and Family Services 253 22.6%

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6211 Offices of Physicians 224 16.4%

6241 Local Government, Excluding Education and Hospitals 182 16.3%

9039 Education and Hospitals (Local Government) 181 10.1%

7211 Automobile Dealers 169 27.4%

2382 Nursing Care Facilities (Skilled Nursing Facilities) 161 19.9%

6231 Personal Care Services 130 29.2%

Industry Concentration An industry’s location quotient (LQ) measures how concentrated that industry is in a particular geographical area; a quotient greater than 1.0 means an industry is more concentrated than the national average, while a quotient less than 1.0 indicates the industry is less concentrated than the national average.4 Hot Springs has a high concentration of Footwear Manufacturing (with an LQ of 19.8), Spectator Sports, and Other Investment Pools and Funds industries, relative to the nation and the State of Arkansas.

Concentrated Industries

NAICS 2014 Location Quotient Code Industry Hot Springs Arkansas USA

3162 Footwear Manufacturing 19.8 7.4 1.0 7112 Spectator Sports 12.1 0.9 1.0

5959 Other Investment Pools and Funds 10.9 2.1 1.0

1132 Forest Nurseries and Gathering of Forest Products 6.7 1.2 1.0

3262 Rubber Product Manufacturing 6.4 3.8 1.0

2122 Metal Ore Mining 5.7 0.2 1.0

7131 Amusement Parks and Arcades 5.0 0.4 1.0

3366 Ship and Boat Building 4.8 1.4 1.0

3364 Aerospace Product and Parts Manufacturing 4.7 0.8 1.0

3297 Other Nonmetallic Mineral Product Manufacturing 4.7 1.1 1.0

Industry Competitiveness The regional competitive effect (also known as competitive advantage) isolates the portion of an industry’s change in employment that is due to a region’s competitive advantages (or disadvantages) by

4 See http://www.economicmodeling.com/2011/10/14/understanding-location-quotient-2/ for more information.

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subtracting out the expected change in employment if that region’s industry was influenced only by national or industry-wide trends.5

For example, employment in the Management, Scientific, and Technical Consulting Services industry increased by 623 over the past ten years. However, based on national economic growth trends and overall trends in the Management, Scientific, and Technical Consulting Services industry, employment in this industry was expected to increase by only 31 jobs over that time period. The difference between the expected change in employment and the actual change in employment (592) is due to Hot Springs’ competitive advantage in this industry. Stated another way, of the 623 jobs that were added in this industry, 31 jobs were added due to national and industry trends, while 592 were added due to Hot Springs' unique competitive advantage in this industry.

5 See http://www.economicmodeling.com/2011/12/05/understanding-shift-share-2/ for more information.

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Competitive Industries

Actual Less: Expected Equals: Change in Change due to Regional NAICS Employment National and Competitive Code Industry 2005-2014 Industry Trends Effect

5416 Management, Scientific, and Technical 623 31 592 Consulting Services 7225 Restaurants and Other Eating Places 830 578 252

State Government, Excluding Education 9029 202 -20 222 and Hospitals

Nursing Care Facilities (Skilled Nursing 6231 226 30 196 Facilities)

Aerospace Product and Parts 3364 214 36 177 Manufacturing

4411 Automobile Dealers 135 -28 164

Computer Systems Design and Related 5415 142 17 125 Services

4481 Clothing Stores 81 -11 92

4431 Electronics and Appliance Stores 69 -19 88

5611 Office Administrative Services 105 18 88

Other industries that Hot Springs is particularly competitive in include Restaurants and Other eating Places, State Government, Excluding Education and Hospitals, and Nursing Care Facilities (Skilled Nursing Facilities. In each of these industries, growth in employment significantly exceeds the growth that would be expected if these industries were only influenced by national or industry trends. Key Industries Based on the preceding analysis, TPMA identified 10 industries that are key to the health and future growth of the Hot Springs region. Together, these industries provide 12,091 jobs, with an additional 564 jobs expected to be created by 2024. The key industries were selected based on one or more factors, including:

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 2014 employment  Past and projected growth  Concentration  Competitive advantage  Average wages  Relationship between industries  Strategic importance

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Key Industries Employment Employment

NAICS 2014 2005-2014 2014-2024 Code Industry Employment Change % Change Change % Change General Medical and 6221 1,948 -742 -27.6% -493 -25.3% Surgical Hospitals 6211 Offices of Physicians 1,365 184 15.6% 224 16.4% Individual and Family 6241 1,123 446 65.8% 253 22.6% Services Nursing Care Facilities 6231 807 226 38.9% 161 19.9% (Skilled Nursing Facilities) Restaurants and Other 7225 4,035 830 25.9% 435 10.8% Eating Places 7112 Spectator Sports 637 108 20.4% -63 -9.9% 7211 Traveler Accommodation 845 -393 -31.7% -229 -27.1% Aerospace Product and 3364 630 214 51.3% -43 -6.9% Parts Manufacturing Management, Scientific, 5416 and Technical Consulting 701 623 805.0% 319 45.6% Services

The key industries within the Health Care and Social Assistance sector includes the General Medical and Surgical Hospitals, Offices of Physicians, Individual and Family Services, and Nursing Care Facilities (Skilled Nursing Facilities) industries.

 These are high-employment, concentrated (all four industries have an LQ of 1.5 or above), and (with the exception of General Medical and Surgical Hospitals) high-growth industries. They are critical to Hot Springs’ ability to meet the healthcare demand of the Hot Springs Village retirement community.  The General Medical and Surgical Hospitals industry is a major source of employment and high- wage jobs, but has declined by 27.6% over the past 10 years and is expected to decrease by an additional 25.3% by 2024. Hot Springs does not currently have a competitive advantage in this industry (with competitive effect of -1,016); however, it does have a high industry concentration (with an LQ of 1.6). Although this industry is in decline, it is still a key part of Hot Springs’ economy.

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The key industries within the Accommodation and Food Services sector includes the Restaurants and Other Eating Places, Spectator Sports, and Traveler Accommodation industries.  These are high-employment industries, and although wages for these jobs are relatively low, they are important for Hot Springs’ ability to attract tourists and are a critical factor in the quality-of- life for residents.  Employment in the Restaurants and Other Eating Places industry has grown significantly over the past 10 years, a trend which is projected to continue.  The Spectator Sports industry has the highest location quotient (12.1) of all key industries and has grown by 20.4% over the last 10 years. The vast majority of the jobs in this industry (84.5%) are within the Racetracks subsector (NAICS 711212) due to the presence of the Oaklawn Park Race Track.  The Traveler Accommodation industry declined by 31.7% over the past 10 years, and is projected to decrease by an additional 27.3% by 2024. Hot Springs does not currently have a competitive advantage in this industry (with competitive effect of -413); however, it does have a high- concentration in this industry (with an LQ of 1.7). Although it is in decline, this industry is critical to the health of the region’s tourism activities.

The Aerospace Product and Parts Manufacturing industry has relatively high employment, high wages ($53,508 on average), and has grown considerably since 2005 (51.3%). Although employment is projected to decline by 6.9% by 2024, Hot Springs has a competitive advantage (with a competitive effect of 177) and a high concentration (with an LQ of 177) in this industry.

Finally, the Management, Scientific, and Technical Consulting Services industry has relatively high employment and has experienced tremendous growth over the past 10 years (with an 805.1% increase and 623 new jobs), a trend which is expected to continue. Hot Springs has a competitive advantage (with a competitive effect of 592) and a strong concentration (with an LQ of 1.7) in this industry); however, average wages in this industry are low at only $23,619. The majority of jobs within this industry (83.5%) are within the Marketing Consulting Services subsector (NAICS Code 541613).

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Occupation Analysis Overview Nearly half (40.0%) of Hot Springs’ jobs are concentrated within three job families: Office and Administrative Support Occupations (with 14.3% of total employment), Sales and Related Occupations (14.1%), and Food Preparation and Serving Related Occupations (11.6%). Wages in all three of these job families are relatively low, beneath the average hourly wages for the region ($17.49), the state ($17.65), and the nation ($21.68). However, the average wages for the fourth largest job family, Healthcare Practitioners and Technical Occupations, are significantly above the regional, state, and national average at $30.17. This job family has the second highest wages in the region, after Life, Physical, and Social Science Occupations ($30.65).

Employment and Average Earnings by Job Family

Average SOC 2014 % of Hourly Code Job Family Employment6 Total Earnings

43-0000 Office and Administrative Support Occupations 5,920 14.3% $12.28 41-0000 Sales and Related Occupations 5,849 14.1% 13.93

35-0000 Food Preparation and Serving Related Occupations 4,824 11.6% 8.84

29-0000 Healthcare Practitioners and Technical Occupations 2,985 7.2% 30.17

39-0000 Personal Care and Service Occupations 2,226 5.4% 9.51

47-0000 Construction and Extraction Occupations 2,174 5.2% 13.56

11-0000 Management Occupations 2,076 5.0% 26.49

25-0000 Education, Training, and Library Occupations 1,976 4.8% 19.65

31-0000 Healthcare Support Occupations 1,945 4.7% 11.43

51-0000 Production Occupations 1,886 4.5% 13.03

53-0000 Transportation and Material Moving Occupations 1,792 4.3% 11.98

Building and Grounds Cleaning and Maintenance 37-0000 1,783 4.3% 9.58 Occupations

49-0000 Installation, Maintenance, and Repair Occupations 1,587 3.8% 14.46

13-0000 Business and Financial Operations Occupations 905 2.2% 23.10

33-0000 Protective Service Occupations 754 1.8% 14.36

6 Employment counts for the industry sectors (41,463) do not match the job families (41,467) due to rounding.

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Employment and Average Earnings by Job Family

Average SOC 2014 % of Hourly Code Job Family Employment6 Total Earnings

21-0000 Community and Social Service Occupations 618 1.5% 16.97

Arts, Design, Entertainment, Sports, and Media 27-0000 525 1.3% 16.06 Occupations

55-0000 Military occupations 421 1.0% 18.50

15-0000 Computer and Mathematical Occupations 405 1.0% 22.46

17-0000 Architecture and Engineering Occupations 387 0.9% 26.62

23-0000 Legal Occupations 169 0.4% 26.72

45-0000 Farming, Fishing, and Forestry Occupations 140 0.3% 12.01

19-0000 Life, Physical, and Social Science Occupations 120 0.3% 30.65

TOTAL/AVERAGE 41,467 100.0% $17.49 High-Employment Occupations Retail Salespersons, Cashiers, and Waiters and Waitresses are the largest occupations in Hot Springs, with a combined 9.8% share of total employment; however, these are typically low-skill, low-wage jobs. Health Care-related occupations, including Registered Nurses, Nursing Assistants, and Personal Care Aides, rank highly in terms of employment. High-Employment Occupations SOC 2014 % of Code Occupation Employment Total

41-2031 Retail Salespersons 1,721 4.2%

41-2011 Cashiers 1,267 3.1%

35-3031 Waiters and Waitresses 1,057 2.5%

29-1141 Registered Nurses 1,043 2.5%

43-9061 Office Clerks, General 1,034 2.5%

31-1014 Nursing Assistants 931 2.2%

Combined Food Preparation and Serving Workers, Including Fast 35-3021 828 1.9% Food

41-3099 Sales Representatives, Services, All Other 701 1.7%

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35-2014 Cooks, Restaurant 675 1.6%

39-9021 Personal Care Aides 655 1.6%

High-Growth Occupations Emergency Medical Technicians and Paramedics was the fastest growing occupation in Hot Springs over the past 10 years. Other fast-growing occupations include Web Developers (116.7%), Information Security Analysts (80.8%).

High-Growth Occupations Employment 2005 - 2014 SOC Code Change % Change Occupation 29-2041 Emergency Medical Technicians and Paramedics 28 127.3% 15-1134 Web Developers 14 116.7% 15-1122 Information Security Analysts 8 80.0%

39-5011 Barbers 14 77.8%

Coin, Vending, and Amusement Machine Servicers and 49-9091 16 72.7% Repairers

15-1132 Software Developers, Applications 18 56.3%

39-9021 Personal Care Aides 224 52.0%

39-5092 Manicurists and Pedicurists 14 51.9%

39-5094 Skincare Specialists 8 50.0%

13-1081 Logisticians 7 50.0%

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Relatively modest gains in employment can have a significant impact on the growth rate for low- employment occupations, which means that a high-growth rate is not always indicative of major development within a given occupation. Therefore, the total number of jobs created should also be considered when evaluating high-growth occupations. For example, there were only 10 employees in the Information Security Analysts occupation in 2005, so the creation of eight additional jobs means the occupation grew by 80% over the past 10 years. So, while this occupation certainly has a fast growth rate, it is not significant in terms of total employment.

Of the 10 fastest-growing occupations, only Personal Care Aides added a significant number of new jobs over the past 10 years (with a 52.0% increase in employment and 224 new jobs).

Occupations with Significant Job Gains Employment 2005 - 2014 SOC Code Occupation Change % Change

39-9021 Personal Care Aides 224 52.0%

41-3099 Sales Representatives, Services, All Other 176 33.5% 35-3021 Combined Food Preparation and Serving Workers, Including 169 25.6% Fast Food 31-1011 Home Health Aides 147 46.2%

31-1014 Nursing Assistants 131 16.4%

35-2014 Cooks, Restaurant 121 21.8% 35-3031 Waiters and Waitresses 117 12.4%

41-2031 Retail Salespersons 98 6.0%

41-3021 Insurance Sales Agents 77 46.7%

29-2061 Licensed Practical and Licensed Vocational Nurses 70 17.4%

Projected Growth Occupations The Emergency Medical Technicians and Paramedics occupation is expected to continue growing at a rapid rate over the next 10 years, with a 66.0% increase in employment. Other major projected-growth occupations include Brickmasons and Blockmasons (58.3%), Helpers- Brickmasons, Stonemasons, and Tile and Marble Setter (50.0%), and Reservation and Transportation Ticket Agents and travel Clerks (50.0%).

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Projected-Growth Occupations SOC Employment 2014 - 2024 Code Occupation Change % Change

29-2041 Emergency Medical Technicians and Paramedics 33 66.0% 47-2021 Brickmasons and Blockmasons 14 58.3%

Helpers--Brickmasons, Blockmasons, Stonemasons, and Tile 47-3011 9 50.0% and Marble Setters

43-4181 Reservation and Transportation Ticket Agents and Travel Clerks 5 50.0% 39-5011 Barbers 15 46.9%

29-1071 Physician Assistants 5 45.5%

Ambulance Drivers and Attendants, Except Emergency Medical 53-3011 4 40.0% Technicians

39-5092 Manicurists and Pedicurists 16 39.0%

15-1134 Web Developers 10 38.5%

13-1161 Market Research Analysts and Marketing Specialists 18 36.5%

There is no overlap between of the top 10 projected-growth occupations and the top 10 occupations that are expected to add a significant number of jobs.

Occupations with Significant Projected Job Gains Employment 2014 - 2024 SOC Code Change % Change Occupation 35-3021 Combined Food Preparation and Serving Workers, Including 184 22.2% Fast Food 39-9021 Personal Care Aides 160 24.4%

41-2031 Retail Salespersons 92 5.3%

31-1011 Home Health Aides 88 18.9%

37-2011 Janitors and Cleaners, Except Maids and Housekeeping Cleaners 63 10.1%

35-2014 Cooks, Restaurant 62 9.2%

39-5012 Hairdressers, Hairstylists, and Cosmetologists 50 17.7% 29-2061 Licensed Practical and Licensed Vocational Nurses 48 10.1%

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53-7062 Laborers and Freight, Stock, and Material Movers, Hand 48 9.9%

25-2021 Elementary School Teachers, Except Special Education 45 12.9%

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Key Occupations Based on the preceding analysis, TPMA identified five occupations that are key to the employment growth in the Hot Springs region. These industries were selected based on one or more factors, including:  2014 employment  Past and projected growth  Average wages  Relationship between occupations  Strategic importance

All of the key occupations fall within Health Care-related job families. Together, these five occupations account for a little over 3,600 jobs, with an additional 446 jobs expected by 2024. These occupations are high-growth fields, a trend which is expected to continue over the next decade. The notable exception is the Registered Nurses occupation, which experienced a 13.8% reduction in employment since 2005 and is anticipated to decline by an additional 7.2% over the next 10 years.

Key Occupations Employment Employment

SOC 2014 2005-2014 2014-2024 Code Occupation Employment Change % Change Change % Change 29-1141 Registered Nurses 1,043 (167) (13.8%) (75) (7.2%) 31-1014 Nursing Assistants 931 131 16.4% 26 2.8% 39-9021 Personal Care Aides 655 224 52.0% 160 24.4% 31-1011 Home Health Aides 465 147 46.2% 88 18.9% Licensed Practical and 29-2061 Licensed Vocational 473 70 17.4% 48 10.1% Nurses

Although the Registered Nurses occupation is on a downward trajectory, it is a major source of employment in the region and has a relatively high median wage at $25.10 per hour. The other key occupations are relatively low-wage, with median earnings ranging from $9.56 to $16.96 per hour. Interestingly, the low-skill, low-wage Nursing Assistants, Personal Care Aides, and Home Health Aides occupations have higher median earnings in Hot Springs than at the state level, while higher-skill, higher- wage Registered Nurses and Licensed Practical and Licensed Vocational Nurses earn less than their peers across the state.

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Qualifications and Median Hourly Earnings for Key Occupations

Typical Qualifications Median Hourly Earnings

On-the- SOC Job Hot Code Occupation Education Training Springs Arkansas USA

Associate's $31.7 29-1141 None $25.10 $26.56 Registered Nurses degree 6

Postsecondary 31-1014 Nursing Assistants non-degree None 10.65 10.12 11.95 award

Less than high Short- 39-9021 Personal Care Aides 9.56 8.67 9.62 school term

Less than high Short- 31-1011 Home Health Aides 10.10 8.57 10.03 school term

Postsecondary Licensed Practical and 29-2061 non-degree None 16.96 17.13 20.18 Licensed Vocational Nurses award

Conclusions and Recommendations Data Validation While this report contains data from publicly available and proprietary datasets, it is important to validate growth projections and substantiate workforce challenges by following up with regional employers to gain real-time information. Often, government data may underestimate the true magnitude of real-time hiring needs, since changes in the private sector can occur more rapidly than public sector data can track. TPMA recommends Hot Springs conduct employer outreach to ask for industry- and occupation-specific hiring projections and the reasons behind those projections (retirement, turnover, net new job creation, etc.). Workforce Composition Strategies Although Hot Springs’ average age is significantly higher than the national average, its population and labor force are relatively stable. However, in the long-term, the overall age of the workforce and the impending retirement of the Baby Boomer generation will present workforce challenges. Hot Springs should proactively develop workforce composition strategies to address these challenges before they negatively impact the region’s ability to meet local labor demand. TPMA recommends:  Further study to create retirement projections by industry and occupation  Developing programs to assist companies in the development of succession planning and knowledge transfer to capitalize on mature workers’ skills and abilities before retirement

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 Developing strategies to entice qualified new graduates and adults re-entering the labor force to stay in the region after graduation Entrepreneurism and Innovation Entrepreneurism and innovation are critical for a region’s economic growth, competitiveness, and vitality. Hot Springs has a relatively high concentration of entrepreneurs, but wages are relatively low and the region’s entrepreneurial capacity is not translating into innovation. This may indicate the region’s entrepreneurial capacity and human capital is not being maximized. The absence of major research universities or research or technical parks may be a factor in the region’s low rate of patenting. In order to support entrepreneurs and increase the probability that their activities will translate into innovation and economic development, TPMA recommends:  Creating a catalog of the entrepreneurs in the region  Evaluating current programs, policies, and infrastructure to support entrepreneurs  Developing a strategy for encouraging higher-wage entrepreneurial activity  Identifying opportunities to link local entrepreneurs with research and technology institutions Health Care Cluster: Healthcare Industries and Occupations TPMA’s analysis indicates healthcare industries and occupations form the backbone of Hot Springs’ economy, a trend we have been seeing in communities across the nation as lifespans increase and the Baby Boomers begin retiring in large numbers, placing demand upon the healthcare system. These industries and occupations are especially critical to Hot Springs’ ability to meet demand for medical services in the region and at Hot Springs Village, the nation’s largest gated retirement community. Several of the key occupations are low-wage, low-skill occupations. Economic and workforce efforts should not necessarily focus on growing these types of jobs; however, these occupations do serve an important role as the entryway into healthcare career pathways. TPMA recommends:  Further study to determine the factors behind the job losses in the Registered Nurses Occupation  Assessing the work-readiness of the current population  Collaborating with local training organizations and employers, such as National Park Community College, Petra Allied Health, St. Vincent Hot Springs, and Mercy Hospital, to develop stacked and latticed career pathways in Health Care and Nursing  Evaluating the availability of workforce training programs to allow workers to advance their skills  Developing a strategy for growing jobs at the higher end of the career pathways Tourism Cluster: Accommodation and Food Service Industries Hot Springs has a natural competitive advantage in Accommodation and Food Service due to tourist attractions such as the Hot Springs National Park and Bathhouse Row (the oldest federal reserve in the United States), the Oaklawn Park Race Track (the ninth ranked thoroughbred racetrack in North America by the Horseplayers Association of North America), and the Ouachita Mountains. The types of jobs associated with these industries are generally low-skill, low-wage; however, having a large workforce in these areas is critical for attracting tourists and their spending dollars. In addition, the cultivation of a vibrant and attractive downtown is crucial to Hot Springs’ identity and brand, as well as the quality of life for residents and the attraction of the creative class. TPMA recommends:  Further study to determine the factors behind the job losses in Traveler Accommodation

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 Further study to determine the factors behind the projected job losses in Spectator Sports Promising Industries: Aerospace Manufacturing and Consulting Services The nature of industry and workforce trends assumes that growth that is currently happening will continue along the same trajectory. Our conclusion that the Allied Healthcare industries and occupations are the basis for the current and future health of the economy does not preclude Hot Springs’ ability to craft economic and workforce policies and programs that could fundamentally alter the landscape.

The Aerospace Products and Parts Manufacturing industry has experienced a high rate of growth and added a significant number of jobs over the past 10 years. Although employment is projected to decline slightly over the next decade, Hot Springs has a high concentration in this industry and has a competitive advantage in this type of manufacturing, which indicates the downward trend may be reversible if the proper policies and programs are identified. While Aerospace Products and Parts Manufacturing is ranked 16th in terms of total employment (with 630 employees), it is dwarfed by employment in restaurants, retail, and healthcare. The attraction of a few more businesses in this industry could provide a substantial boost to employment in Aerospace Products and Parts Manufacturing.

Management, Scientific, and Technical Consulting Services is an upstart industry that has grown tremendously over the past decade, a trend which is expected to continue. Hot Springs has a competitive advantage in this industry, specifically in the Marketing Consultants subsector. This means Hot Springs has some unique feature that is encouraging growth in this industry, such as a specialized marketing college and technical programs or having one specific firm that is acting as a “local champion,” for example. Given the right environment and incentives, it is possible that Hot Springs could attract new Management, Scientific, and Technical Consulting Services firms and jobs to the region.

To further evaluate the potential of the Aerospace Products and Parts Manufacturing industry and the Management, Scientific, and Technical Consulting Services industry, TPMA recommends:  Further studies to determine the factors behind the growth in these industries  A study of the Aerospace Products and Parts Manufacturing supply chain to ensure that the inputs into this industry are readily available and offered at competitive prices  Assessing the work-readiness of the current population  Developing stacked and latticed career pathways in these occupations  Evaluating the availability of local workforce training programs for these industries  Developing a strategy for preventing job losses in the Aerospace Product and Parts Manufacturing industry  Developing a strategy for attracting jobs at the higher end of the career pathways for Management, Scientific, and Technical Consulting Services

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Downtown Neighborhood

Assessment

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Contents Part 1. Neighborhood SWOT Analysis ...... 5 Strengths ...... 5 Park Avenue ...... 5 Quapaw Prospect ...... 5 Whittington Valley ...... 5 Gateway ...... 5 Weaknesses ...... 5 Park Avenue ...... 5 Quapaw Prospect ...... 5 Whittington Valley ...... 5 Gateway ...... 5 Opportunities ...... 6 Park Avenue ...... 6 Quapaw Prospect ...... 6 Whittington ...... 6 Gateway ...... 6 Threats ...... 6 Park Avenue ...... 6 Quapaw Prospect ...... 6 Whittington ...... 6 Gateway ...... 6 Part 2. Neighborhood-oriented Goals and Action Items ...... 7 Goal 1 ...... 7 Goal 2 ...... 7 Goal 3 ...... 8 Part 3. Review of Past Plans and Recommendations for Neighborhoods ...... 9

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Part 1. Neighborhood SWOT Analysis

Strengths Park Avenue Quapaw Prospect • Prime travel corridor into the City • Historic integrity and National Trust • Engaged neighborhood Designation • Active streetscape improvements and plan • Higher income base • Rich history • Passionate citizens • Close relationship with Code Enforcement

Whittington Valley Gateway • Active and engaged neighborhood • Rich cultural history • Green with three parks • Farmers Market • Summer music series • Historic commercial district • Historic designation • Baxter Plaza • Arkansas School of Math, Science and the Arts

Weaknesses

Park Avenue Quapaw Prospect • Perceptions of decay and crime • No plan for future growth • High speed traffic • Aging demographic • Housing conditions • No commercial activity • Velda Rose and The Majestic • No parks

Whittington Valley Gateway • Housing blight • Blighted housing/appearance • Commercial property vacancies • Gateways to neighborhood • Lacking grocery store • Vacant properties • Above ground power lines cause frequent outages

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Opportunities Park Avenue Quapaw Prospect • Events and urban agriculture • Engage new leaders • Connectivity with downtown • Connectivity with downtown • Bill Clinton boyhood home • Adventure tourism • Velda Rose

Whittington Gateway • Affordable homeownership opportunities • Malvern • Recreation opportunities • Cultural tourism • Expansion of arts and culture • Habitat for Humanity investment • Continue momentum of neighborhood driven • Development of a plan efforts

Threats Park Avenue Quapaw Prospect • Decaying hotel structures • Aging population • Perception of neighborhood as unsafe • Taverns on Ouachita • Absentee landlords Whittington Gateway • Perception as low income • High absentee landlordism • Blighted properties • Lack of private investment • Neighborhood leadership burnout • Howard Johnson Hotel

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Part 2. Neighborhood-oriented Goals and Action Items in the Hot Springs Downtown Economic Development Strategic Plan

GOAL 1: To enhance the downtown experience by improving the infrastructure and quality of place amenities required to become one of America’s best small downtowns.

Action Items:

• Gateways to central business district and neighborhoods (Goal 1, Strategy A. Action 2. d.) • Develop partnerships with city and county departments, chambers of commerce, business, neighborhood, and civic groups to review and assess policies affecting economic development on a regular basis. (Goal 1. Strategy C. Action 1. c.) • Create and enforce accountability policy for absentee landlords in downtown and adjacent neighborhoods. (Goal 1. Strategy C. Action 1 d.)

GOAL 2: To create and foster a stronger sense of community downtown Improve the physical and social connectivity between the businesses and residents of the central business district and surrounding neighborhoods.

Action Items:

• Develop strong partnerships with community-based organizations and foundations for improved programming and facilities in downtown. (Goal 2. Strategy A. Action 1) • Create and seed a group of urban pioneers including the Chamber of Commerce’s Young Professionals group and students from ASMSA, among others, to deploy tactical urbanism, market downtown assets and opportunities, and take on leadership roles on downtown initiatives. (Goal 2. Strategy A. Action 2.)

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GOAL 3: To position downtown as a vibrant economic engine to offer a place for its residents to live, work, and play centered on supportive and emerging sectors.

Action Items:

• Create and promote a framework of collaboration principles for elected officials, economic development organizations, chambers of commerce, and other organizations from multiple jurisdictions and sectors to review and assess economic development policies on a regular basis. (Goal 3. Strategy B. Action 2.) • Target tourism marketing to appeal to a variety of niche markets including retirees, minorities, and millennials. (Goal3. Strategy E. Action 1) • Promote the potential of Bill Clinton’s boyhood home as tourist destination. (Goal3. Strategy E. Action 5)

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Part 3. Review of Past Plans and Recommendations for Park Avenue, Whittington Valley, Quapaw-Prospect, and Gateway Neighborhoods

Park Avenue Neighborhood The Park Avenue Neighborhood is located on the northern end of downtown Hot Springs, adjacent to Hot Springs National Park, and along the major arterial road Park Avenue. This neighborhood has experienced both growth and decline over time and is currently the subject of a variety of revitalization efforts. The efforts in the neighborhood have been noticed by Hot Springs citizens, but many still consider the neighborhood to need improvement and some citizens have concerns about safety. The Park Avenue Neighborhood is a critical gateway to downtown Hot Springs, and the economic health and vitality of the downtown and the neighborhood are interrelated.

Previous Neighborhood Plans In 2001, the Park Whittington Neighborhood Plan was prepared by Urban Planning Associates, Inc. This report followed a thorough public input process, review, and analysis of two neighborhoods: Park Avenue Neighborhood and Whittington Valley Neighborhood. These neighborhoods are north of and adjacent to Central Avenue and are similarly characterized by their major arteries, Park Avenue and Whittington Avenue, their proximity to Hot Springs National Park, and their diverse housing stock. Although the report combines them, for the most part, they are approached as distinct neighborhoods today. The report analyzed the demographics, housing mix, commercial mix, historic and cultural resources, parks and recreation, and transportation options for the combined area. The following eight attributes were generated:

Park Whittington is a neighborhood…

1. with a safe, effective, and attractive transportation system. 2. with healthy and attractive businesses. 3. with an attractive residential area that offers housing for a mix of income levels and household sizes. 4. with an attractive physical appearance and a positive image. 5. with quiet residential areas free from disruptive influences and intrusions.

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6. that supports and, in turn, is supported by other areas of the city. 7. of active residents and property owners striving to build an increasingly stable, safe, and desirable neighborhood 8. that offers a diverse range of opportunities within a quality urban setting.

Park Avenue Community Association (PACA), the active neighborhood association in Park Avenue, has worked with the City of Hot Springs, the Chamber of Commerce, and other private and nonprofit partners to make improvements to their neighborhood. A synopsis of current efforts related to these eight characteristics is included below.

1. Park Avenue is a neighborhood with a safe, effective, and attractive transportation system Current activity:

Complete Streets

In February 2015, the City of Hot Springs passed a resolution supporting a Complete Streets Policy for all public spaces within Hot Springs. Walkable and Livable Communities Institute, along with a team of local partners, produced Honoring Place through Improved Walkability: Hot Springs, Arkansas, 2012 an extensive study and analysis of sidewalks, streets, and traffic flow of Oaklawn, downtown, and Park Avenue. This comprehensive complete streets report was the pre-cursor to the adoption of the Complete Streets Policy.

CDBG Funded Infrastructure Improvements

Park Avenue Community Association successfully partners with the City of Hot Springs on CDBG allocation, and this year received $189,992 towards infrastructure improvements.

The Arkansas State Department of Transportation has announced plans for roadway improvements in

2016 through two low-to-moderate income areas with blighted commercial corridors including Park

Avenue.

Figure 1 Complete Streets analysis of Park Avenue. Source: Honoring Place through Improved Walkability: Hot Springs, Arkansas, 2012

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Opportunities: The City of Hot Springs executes the Complete Streets plan and uses guiding principles to

a. design an Iconic entryway into Park Avenue neighborhood at Central Avenue roundabout. b. create a more bike-friendly neighborhood with pathways to downtown.

2. Park Avenue is a neighborhood with healthy and attractive businesses

Current activity:

Summerfest Uptown

There are some quality dining options along Park Avenue, including Deluca’s Pizzeria and Central Park Fusion Cuisine. Park Avenue Community Association has executed pop-up and special event strategies to provide additional support and visibility to the neighborhood businesses. Originally Pop Up on Park, this event has evolved into a monthly themed event called Summerfest Uptown which spans about seven blocks of Park Avenue and features live music, local food and beverage, and other activities. Quality events for social engagement increase business visibility and improve neighborhood recognition and reputation.

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Opportunities: Neighborhood leaders work with Chamber of Commerce to conduct proactive business recruitment efforts.

a. Conduct an inventory of available commercial property. b. Market commercial product through realtors, Chamber of Commerce, City of Hot Springs, and neighborhood networks. c. Engage Park Avenue in existing downtown business recruitment efforts to elevate Park Avenue as a great place to live.

Park Avenue business and neighborhood leaders collaborate with downtown businesses and organizations on Figure 2 Advertising for street festival on Park Avenue. Source: Popup On Park Facebook Page events and programs for cross- promotion.

3. Park Avenue is a neighborhood with attractive residential areas that offer housing for a mix of income levels and household sizes Current activity: CDBG Homeowner Rehab Program

The City of Hot Springs has been using CDBG allocation to rehab 7-12 single-family, owner occupied, and low-to-moderate housing units per year mainly in the targeted areas of Park Avenue and Pleasant Street. Between 2004 and 2013, 107 homes were brought up to City code, ADA accessibility standards, and/or addressed urgent needs enabling homeowners to remain in their homes.

Opportunities: City of Hot Springs continue to support rehabs for low-to-moderate income homeowners through CDBG.

Park Avenue Community Association leads a grassroots effort such as Paint the Town to support beautification of blighted residential in high impact locations

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4. Park Avenue is a neighborhood with an attractive physical appearance and positive image Current activity: Flower and Garden Show Grant

• The Park Avenue Community Association received an Arkansas Flower and Garden Show $1,500 • Greening of Arkansas grant to purchase native plants to be used alongside CDBG funded Park • Avenue Pedestrian Improvement projects.

Park Haven Community Garden

In August 2013, a partnership was created to transform the vacant lot at 655 Park Ave. into a pocket park and community garden. The Park Haven Community Garden Figure 3 A crop field pergola at Park Haven Community Garden. Source: Park Haven Community Gardens Facebook Page mission is to build community, improve participant health, provide fresh organic produce, teach sustainability and environmental and nutritional awareness, and beautify an otherwise unused space.

Opportunities: Conduct a neighborhood-driven branding exercise and build a stronger identity in the Park Avenue neighborhood with outcomes including

a. brand-specific wayfinding signage and streetscape elements b. neighborhood pride promotional products to advance the reputation of Park Avenue c. updated neighborhood website d. promotion templates to attract investors through residential and commercial realtors

5. Park Avenue is a neighborhood with quiet residential areas free from disruptive influences and intrusions Current activity: Neighborhood Watch

The City of Hot Springs Police Department’s Neighborhood Watch Program is a crime prevention initiative designed to reduce crime within a neighborhood by promoting and mentoring community involvement.

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Opportunities: Improve oversight of rental properties through a Landlord Registration Policy with the City of Hot Springs. By registering accountable parties for rental properties, the City has direct lines of communication for code issues and may institute a notification system for police calls.

6. Park Avenue neighborhood supports, and in turn, is supported by other areas of the city Current activity: Neighborhood identity

The Park Avenue Neighborhood reputation is evolving, but as the neighborhood declined, its reputation also declined. There are not many realtors or other promotional entities that highlight Park Avenue as a great place to live, despite some great amenities.

Opportunities: Build a forum for realtors and neighborhood residents to come together and discuss assets, concerns, and ideas to better promote the neighborhood.

a. direct interventions in problem areas b. home and/or garden tours to promote real estate and livability

7. Park Avenue is a neighborhood with active residents and property owners striving to build an increasingly stable, safe, and desirable neighborhood Current activity: Park Avenue Community Association

The Park Avenue Community Association was established in the late 80s to address safety issues in the neighborhood. Currently the neighborhood association hosts monthly meetings and actively engages residents in planning processes such as Complete Streets, Build a Better Block, and the Downtown Plan. The neighborhood also successfully organizes a monthly street festival, which is no small task.

Park Haven Community Garden

This initiative is a community driven beautification and education project with broad impact. These efforts are indicative of an engaged and passionate residential base.

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Opportunities: Downtown and neighborhood associations organize a summit or council related to the overall downtown revitalization efforts in order to elevate neighborhood priorities and work more cohesively as a broader community.

8. Park Avenue is a neighborhood with a diverse range of opportunities within a quality urban setting Current activity:

The Arlington – Aesthetic improvements are needed to the Arlington and other iconic hospitality structures in the downtown. With that will come continued growth of tourism income and destination- based retail vibrancy. Furthermore, increased online booking options such as Priceline, Orbitz, and Travelocity, and online review sites such as TripAdvisor, Yelp, and Urbanspoon are recommended. Currently the Arlington isn’t available for booking at popular third party sites. Opportunities:

Velda Rose – The shuttered Velda Rose Hotel and Spa was recently placed on the market. It could be incorporated into part of a national or international design competition aimed at finding new uses for the site of the Majestic Hotel. Given the Velda Rose’s proximity to the Majestic Site, the building could be renovated or other uses could be found for the site.

Recommendations Execute Complete Streets Plan throughout Park Avenue neighborhood a. Park Avenue Community Association, the City of Hot Springs and Arkansas Transportation Department continue to work together on allocation of CDBG funds for streetscape enhancement.

Create a sense of place through neighborhood brand, wayfinding, and contextual local events b. Park Avenue Community Association hires local professional to facilitate branding exercise with the neighborhood. c. Brand executed in physical streetscape improvements, where possible. Explore options for banners, street art, and other expressions of the brand.

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d. Park Avenue Community Association continues to produce special events that increase in quality and attendance over time, focusing on existing assets such as restaurants and urban gardens. e. Utilize Bill Clinton’s boyhood home as a marketing opportunity.

Connect to downtown through physical trails, transportation options, and coordinated programs and cross-promotion f. Coordinate efforts with Hot Springs National Park to increase amenities along the Park Avenue corridor. Meet with representatives from the National Park to encourage use of hiking trails that provide connectivity between Gulpa Gorge and Bathhouse Row g. Residential and business representatives of Park Avenue participate in downtown planning and activities to foster stronger connectivity between downtown and the neighborhood.

Explore new options for Velda Rose Explore new options for Velda Rose: Future use of the site should be a topic of discussion and included in the plans for Hot Springs’ future. Careful and deliberate coordination between this property and the redevelopment plans of the Majestic site will be critical to the success of both, whether the City elects to purchase this site and add it to the redevelopment portfolio of the Majestic site or works with a new owner to redevelop the site.

Engage with property owners and realtors to create solutions to blight and deterioration.

h. Park Avenue Community Association produces a realtor roundtable to discuss perception and obstacles to investment in Park Avenue neighborhood. i. City of Hot Springs adopts a Landlord Registration Policy and increases communication with and accountability of absentee landlords. j. Community-based beautification efforts such as Paint the Town or Great American Clean-up

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Whittington Valley Neighborhood The Whittington Valley area is situated just northwest of downtown Hot Springs, largely surrounded by the Hot Springs National Park. Whittington Avenue is a major corridor off of Central Avenue and gateway to downtown. The neighborhood has a historic designation, a variety of parks, legacy projects, and an engaged neighborhood association, Whittington Valley Neighborhood Association (WVNA). The neighborhood is home to a couple tourist destinations but otherwise is primarily a residential community.

Previous Neighborhood Plans In 2001, Whittington was the subject of the same neighborhood study as Park Avenue mentioned above. The Whittington Valley Neighborhood Association has proactively reviewed the 2001 recommendations, facilitated an assessment and engagement process of over 70 residents, and produced The 2013 Amendment to the Park Whittington Neighborhood Plan: The Whittington Valley. This section of the Neighborhood Assessment reflects that report, given the quality of approach and analysis. In the 2013 Amendment, the neighborhood restructured the eight goals into the following four goals:

1. Whittington Valley is a neighborhood with an attractive physical appearance; a neighborhood that is safe and stable; a place that is desirable to visit. Current activity:

In 2010, WVNA engaged in conversations on how to best provide a safe environment for bicyclists. As a result of the neighborhood’s advocacy, street calming measures were taken to reduce the speed of vehicles on the road and improve overall safety. The neighborhood has supported efforts for an overall road diet through the valley, including cut outs, curbs, stop signs, and other remedies for high speed traffic. In April 2011 WNVA worked with City officials to increase paving. In 2012, WNVA obtained a federal grant for repairs to the sidewalks around Whittington Federal Park.

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Opportunities: Use Complete Streets policy and create a long term plan to continue infrastructure improvements in Whittington Valley.

Use engaged neighborhood to promote high expectations for individual and civic care for properties, public amenities, streets, and infrastructure as outlined in 2011 Amendment.

Work with Hot Springs Police Department to understand perceptions of safety and solutions.

a. Hot Springs Neighborhood Watch Program b. Improved lighting in parks and alongside roads Figure 4 Speed limits placed on west end of Whittington Avenue in 2010. Source: www.whittingtonvalley.org.

2. Whittington Valley is a neighborhood with residential areas that promote a good quality of life; a neighborhood in which people want to raise a family. Current activity: Whittington City Park

The Whittington City Park is a great neighborhood asset in Whittington Valley. The park has historical significance and is highly utilized. The Hot Springs Concert Band performs free outdoor concerts every month.

In 2013, $1,580.84 was used to complete Whittington City Park Toddler Playground improvements. The toddler playground replaced an aged, unused shuffle board court in disrepair while providing the necessary paved surface for the rubberized safety base pour, which reduced project costs while meeting the needs of the community.

Baseball Trail Park

The Whittington Valley Neighborhood Association received $14,000 from the Arkansas General Improvement Fund for Baseball Trail Park renovations, a park that has benefited from CDBG investments over the last four (4) years. Whittington Park (aka Ban Jonson Park) hosted more Spring Training Baseball than any other ballpark in the country during its time.

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3. Whittington Valley is a neighborhood with successful and attractive businesses. Current Activity: The commercial presence in Whittington Valley has declined over the past twenty years, and the neighborhood has become primarily residential. The neighborhood has outlined a strategy to repurpose existing vacant commercial buildings and encourage business enterprises consistent with the Figure 5 Hot Springs Concert Band at Whittington Park. Source: area’s largely residential aesthetic. www.whittingtonvalley.org

Opportunity: Support downtown efforts for an urban grocery to serve both downtown residents and residents of Whittington Valley.

Showcase trails, parks, and opportunities for adventure tourism in the Whittington Valley neighborhood in alignment with downtown’s efforts to foster broader opportunities for walking, hiking, bicycling, sports, and recreation.

Repurpose vacant commercial properties into artist studios and galleries.

4. Whittington Valley is a neighborhood with a positive image; a neighborhood that is an asset to the city as a whole. Current Activity: The neighborhood association has worked hard to develop an active planning and neighborhood-driven revitalization effort, while also overcoming stigma as a residential base that is difficult to work with.

Opportunity: Whittington Valley Neighborhood Association (WVNA) representatives participate in downtown efforts as a partner and asset to the overall revitalization efforts, coordinating special events and participating in programs.

a. Recruit quality artists for public performances in Whittington Valley b. Use public art and creative placemaking initiatives to improve blighted buildings and underutilized spaces.

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WVNA seeks to recruit more artists and creative individuals into its neighborhood. By actively supporting arts-related advocacy, the neighborhood can reflect itself positively to the arts community and recruit new residents.

a. Market affordable housing options to arts community through targeted marketing and enhanced relationships with realtors. b. Promote cultural assets of the neighborhood including parks, Arkansas Figure 6 Whittington Valley Spring 2014 Picnic. Source: whittingtonvalley.org Alligator Farm, Dryden Pottery, First Presbyterian Church, Roanoke Baptist Church, and historic homes such as The Latta House.

Recommendations Acknowledge and maintain the community-driven planning efforts of WVNA. a. Update the 2013 Amendment in alignment with broader community and downtown revitalization goals. b. Focus on engagement of new residents and millennials in the planning process to build long term cohesion and prevent burnout. c. Present amended plan as an addendum to the downtown plan and as model for surrounding neighborhoods.

Undergo a process to integrate Complete Streets upgrades throughout neighborhood a. Identify high priority infrastructure improvement areas for short term and long term goals b. Re-design target streets using the City’s adopted Complete Streets Policy

Adopt a strategy to recruit creative individuals to the neighborhood by promoting adaptive re-use, affordable real estate options, arts and cultural events, public art, and active lifestyle. c. Develop a brand for the community that is reflective of the present as well as future goals d. Work with the Arkansas Arts Council to receive funding for quality artists performances and public art installations e. Continue to program Whittington Valley parks with quality events for social engagement; consider an Arts Fair and partnership with Arkansas School for Math, Science, and the Arts

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Engage with property owners and realtors to create solutions to blight and deterioration. a. Conduct a roundtable discussion of neighborhood perception and obstacles to investment. b. City of Hot Springs adopts a Landlord Registration Policy and increases communication with and accountability of absentee landlords. c. Promote community-based Figure 7 Luminaries in Quapaw Prospect Neighborhood, 2014. beautification efforts such as Paint the Source: Hot Springs Hot Spots Facebook Page Town or Great American Clean-up to target problem areas.

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Quapaw Prospect Neighborhood The Quapaw Prospect Neighborhood is bound by Grand Avenue, Ouachita Avenue, Central Avenue, and West Mountain. This urban neighborhood has a diverse housing stock with values ranging from $85,000 to $700,000, with the average home value at about $250,000. Quapaw Prospect is one of the more distinguished historic neighborhoods in Hot Springs.

The Quapaw Prospect Neighborhood Association sends out a quarterly newsletter to engage residents and share information on neighborhood activities. The printed newsletter goes out to every house in the neighborhood.

Previous Neighborhood Plans

The Quapaw Prospect Neighborhood has not undergone any concerted neighborhood planning process in the past three decades. The neighborhood did, however, undergo the process to be designated on the National Register of Historic Places in 2002. 170 of the over 250 homes in Quapaw Prospect are designated as contributing historic houses. The neighborhood association has existed for 29 years and has a close relationship with the State Historic Preservation Office, hosting annual presentations. The Quapaw Prospect Historic District also hosts a Safety and Code Compliance meeting with the City of Hot Springs each year. It’s known for their block party and for their luminary display.

Whereas other neighborhoods considered safety and housing to be the priority focus for revitalization, the public input forum results indicated that connectivity to downtown Hot Springs was the top priority, and pedestrian/bicycle amenities was the secondary priority.

Recommendations Extend some streetscape elements onto Ouachita Avenue to build connectivity a. Continue bike lanes or bike routes with signage through major neighborhood arteries b. Install neighborhood wayfinding signage to direct pedestrians and bicyclists to downtown, historic points of interest within the neighborhood, and trail heads/West Mountain Drive

Engage new residents, especially millennials, in neighborhood events and leadership a. Develop a social media presence for Quapaw Prospect b. Consider smaller social events such as a progressive dinner or a house party to build relationships with new residents

Promote Quapaw Prospect as a premier urban neighborhood a. Host a historic home tour, and possibly partner with realtors on open house showings

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Gateway Neighborhood The Gateway Community Association boundaries include the Pleasant Street Historic District and the surrounding area between Spring Street, Reserve Street, Grand Avenue, and Central Avenue. The largest geographically of the four neighborhoods, Gateway has a rich cultural heritage, iconic landmarks, and assets such as the Hot Springs Farmers and Artisans Market, the Pleasant Street Historic District, and the newly developed Baxter Plaza. The Gateway Community Association has about 40 active members and has been growing in attendance this year. They have seen a series of positive improvements in the neighborhood including CDBG investment in new sidewalks, the completion of the Baxter Plaza, and investment from Habitat for Humanity. The neighborhood recently was the subject of a neighborhood revitalization study by students at the Clinton School for Public Policy in partnership with Habitat for Humanity.

Previous Neighborhood Plans

In 2006, a set of Design Guidelines were prepared for the Pleasant Street Historic District. These guidelines offer a set of standards, aligned with the Secretary of the Interior’s Standards for Rehabilitation, for the Pleasant Street Commercial District. This document is highly technical but reports on the significant African American cultural history in the neighborhood, beginning in the 19th century. Today there are many representations of the rich history of the African American population in iconic buildings like the Visitor’s Chapel A.M.E. Church as well as in the relatively intact streetscape along Gulpha, Garden, Pleasant, Cottage, and Church which convey a sense of time and place in the era of the district’s status as the center of Hot Springs’ black community. Current Projects: Baxter Plaza

This surface lot plaza was recently redeveloped by The Hot Springs Advertising and Promotions Committee as a public space for outdoor events. The newly developed plaza beautified the area, including a previously vacant lot, and serves as a gateway into the community.

Hot Springs Farmers and Artisans Market

Located at 121 Orange Street, the market operates year round. From May through October the market is open on Saturday mornings and Tuesday evenings. The Winter Market (November through April), while smaller, operates on Saturday mornings from 9a until noon. The market is well managed and a great asset to the Gateway Community. Recently, it’s begun hosting Food Truck Friday’s at the site with live music and several street food options. The Figure 8 Hot Springs Farmers Market. Source: market is a partnership between the Friends of www.hotspringsfarmersmarket.com the Farmers' Market and the City of Hot Springs

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Opportunities: Promote Hot Springs Farmers and Artisans Market as a regional destination for locally grown food.

a. Work with Chamber of Commerce on their Buy Local initiative, designing the farmers market as a central tenet to the campaign. b. Integrate unique design elements into the space to enhance the pedestrian experience and encourage people to see the market as a social gathering place.

Celebrate art and heritage through special events at the Baxter Plaza

Recommendations: Promote neighborhood revitalization through Cultural Tourism a. Work with the Arkansas Historic Preservation Program to develop a “Walk Through History” in the Gateway neighborhood, consider options to integrate this into the infrastructure through signage and wayfinding and walking guides. Connect to and promote from downtown. b. Use Baxter Plaza as an avenue for arts, performance, poetry, and music events in partnership with churches, schools, and the Arkansas Arts Council.

Improve the overall appearance of the neighborhood a. Consider grassroots beautification efforts such as clean-ups and Paint the Town. b. Use the Complete Streets Policy to identify priority targets for infrastructure improvements. c. Review the status of the Howard Johnson hotel and determine the best solution for the site. d. Develop an iconic gateway to downtown.

Build consensus on a housing and neighborhood revitalization plan for Gateway Community Association a. The Habitat for Humanity and Clinton School for Public Policy recommendations may be integrated into a broader framework.

Align with the downtown Hot Springs revitalization strategies

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Table of Contents 101 Whittington Avenue ...... 7 101 Central Avenue ...... 7 110-112 Central Avenue ...... 8 111-121 Central Avenue ...... 8 114-118 Central Avenue ...... 9 124 Central Avenue ...... 9 126 Central Avenue ...... 10 128 Central Avenue ...... 10 135 Central Avenue ...... 11 150 Central Avenue ...... 11 200 Central Avenue ...... 12 201-209 Central Avenue ...... 12 210 Central Avenue ...... 13 212-218 Central Avenue ...... 13 220 Central Avenue ...... 14 Parking Lot – 223 Central Ave ...... 14 224-230 Central Avenue ...... 15 Vacant – 231 Central Ave ...... 15 236 Central Avenue ...... 16 238-240 Central Avenue ...... 16 239 Central Avenue ...... 17 244-250 Central Avenue ...... 17 252-264 Central Avenue ...... 18 316-320 Central Avenue ...... 18 322-326 Central Avenue ...... 19 328-330 Central Avenue ...... 19 332-334 Central Avenue ...... 20 336 Central Avenue ...... 20 338-342 Central Avenue ...... 21 344-348 Central Avenue ...... 21 350-352 Central Avenue ...... 22 354 Central Avenue ...... 22

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360-366 Central Avenue ...... 23 370 Central Avenue ...... 23 401 Hot Springs Mountain Drive ...... 24 402 Central Avenue ...... 24 404 Central Avenue ...... 25 408 Central Avenue ...... 25 410 Central Avenue ...... 26 412-416 Central Avenue ...... 26 418 Central Avenue ...... 27 420-422 Central Avenue ...... 27 424 Central Avenue ...... 28 430 Central Avenue ...... 28 504 Central Avenue ...... 29 510 Central Avenue ...... 29 514 Central Avenue ...... 30 516 Central Avenue ...... 30 518-520 Central Avenue ...... 31 524 Central Avenue ...... 31 528 Central Avenue ...... 32 600 Central Avenue ...... 32 610 Central Avenue ...... 33 620 Central Avenue ...... 33 626 Central Avenue ...... 34 629 Central Ave ...... 34 Surface Lot – Central Ave ...... 35 700-702 Central Avenue ...... 35 706 Central Avenue ...... 36 707 Central Avenue ...... 36 708-714 Central Avenue ...... 37 709 Central Avenue ...... 37 711 Central Avenue ...... 38 718 Central Avenue ...... 38 719 Central Avenue ...... 39

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720 Central Avenue ...... 39 721 Central Avenue ...... 40 723 Central Avenue ...... 40 724 Central Avenue ...... 41 726 Central Avenue ...... 41 728 Central Ave ...... 42 800 Central Avenue ...... 42 801 Central Avenue ...... 43 802 Central Avenue ...... 43 804 Central Avenue ...... 44 808-810 Central Avenue ...... 44 812 Central Avenue ...... 45 817-823 Central Avenue ...... 45 818 Central Avenue ...... 46 825 Central Avenue ...... 46 827 Central Avenue ...... 47 829 Central Avenue ...... 47 831 Central Avenue ...... 48 833 Central Avenue ...... 48

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101 Whittington Avenue Street Number Roman Catholic Property Owner Diocese Year Built 1965 PVA Grade A Use NonProfit Total Square Footage 11,192 Number of Floors 1 Commercial Square Footage - Residential Square Footage - 1st Floor Business - Fl1 Business Type Nonprofit 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

101 Central Avenue Street Number Property Owner 101 Central LLC Year Built 1960 PVA Grade D3 Use Commercial Total Square Footage 2,425 Number of Floors 1 Commercial Square Footage 2,425 Residential Square Footage 0 1st Floor Business Fat Jacks Fl1 Business Type Retail 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

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110-112 Central Avenue Street Number 110-112 Property Owner Claire Desha LLC Year Built 1891 PVA Grade G Use Mixed Use Total Square Footage 2,884 Number of Floors 2 Commercial Square 1,442 Footage Residential Square 1,442 Footage 1st Floor Business The Villa Gift Store

Fl1 Business Type Retail 2nd Floor Occupant Resident Fl2 Business Type Residential 3rd Floor Occupant - Fl3 business type -

111-121 Central Avenue Street Number 111-121 Property Owner Wheatley Family LLLP Year Built 1925 PVA Grade C3 Mixed Use Use/Warehouse Total Square Footage 17,008 Number of Floors 2 Commercial Square 8,874 Footage Residential Square 0 Footage Colonial Breakfast, Rings N Things, Plenty Mystic Makeup, 1st Floor Business Colonial Candy Corner, Museum of Oddities, Maxwell Blade Theatre of Magic Fl1 Business Type Retail 2nd Floor Occupant Vacant Fl2 Business Type Warehouse 3rd Floor Occupant - Fl3 business type -

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114-118 Central Avenue Street Number 114-118 Tillman, Davis Edmon Property Owner Trust Year Built 1891 PVA Grade C3 Use Mixed Use Total Square Footage 7,002 Number of Floors 3 Commercial Square 2,334 Footage Residential Square 4,668 Footage 1st Floor Business Tillman's Antiques Fl1 Business Type Retail 2nd Floor Occupant Resident Fl2 Business Type Residential 3rd Floor Occupant - Fl3 business type Residential

124 Central Avenue Street Number Property Owner Wheatley Family LLLP Year Built 1891 PVA Grade C3 Use Mixed Use Total Square Footage 4,298 Number of Floors 2 Commercial Square 2,149 Footage Residential Square 2,149 Footage EVILO/Fat Bottom 1st Floor Business Girls Cupcakes Fl1 Business Type Retail 2nd Floor Occupant Occupied Fl2 Business Type Residential 3rd Floor Occupant - Fl3 business type -

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126 Central Avenue Street Number Hassell, Debbie Property Owner Wheatley Trust Year Built 1891 PVA Grade G Use Mixed Use Total Square Footage 2,272 Number of Floors 2 Commercial Square 1,164 Footage Residential Square 1,108 Footage 1st Floor Business Madison's Closet Fl1 Business Type Retail 2nd Floor Occupant Vacant Fl2 Business Type Residential 3rd Floor Occupant - Fl3 business type -

128 Central Avenue Street Number Property Owner 128 Central LLC Year Built 1891 PVA Grade G Use Mixed Use Total Square Footage 3,852 Number of Floors 2 Commercial Square 1,926 Footage Residential Square 1,926 Footage 1st Floor Business Blue Brick Boutique Fl1 Business Type Retail 2nd Floor Occupant Occupied Fl2 Business Type Residential 3rd Floor Occupant - Fl3 business type -

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135 Central Avenue Street Number Property Owner M D G Enterprises Inc Year Built 1965 PVA Grade B3 Use Commercial Total Square Footage 101,323 Number of Floors 10 Commercial Square 101,323 Footage Residential Square 0 Footage Springs Hotel, Cajun 1st Floor Business Restaurant, Younique Boutique Fl1 Business Type Hospitality 2nd Floor Occupant Springs Hotel Fl2 Business Type Hospitality 3rd Floor Occupant Springs Hotel Fl3 business type Hospitality

150 Central Avenue Street Number Clear Mountain Spring Property Owner Water, LLC Year Built 1910 PVA Grade A Use Commercial/Office Total Square Footage 11,692 Number of Floors 3 Commercial Square 11,692 Footage Residential Square 0 Footage Mountain Valley 1st Floor Business Spring Water Co Fl1 Business Type Retail Mountain Valley 2nd Floor Occupant Spring Water Fl2 Business Type Office Mountain Valley 3rd Floor Occupant Spring Water Fl3 business type Office

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200 Central Avenue Street Number 200 Property Owner Aristocrat Manor, Ltd Year Built 1970 PVA Grade B4 Use Parking Structure Total Square Footage 13,130 Number of Floors 2 Commercial Square 0 Footage Residential Square 0 Footage 1st Floor Business Parking deck Fl1 Business Type Parking 2nd Floor Occupant Parking Fl2 Business Type Parking 3rd Floor Occupant - Fl3 business type -

201-209 Central Avenue Street Number 201-209 Property Owner Southwest Hotels, Inc Year Built 1924 PVA Grade C4 Use Commercial Total Square Footage 4,207 Number of Floors 1 Commercial Square 4,207 Footage Residential Square 0 Footage Desoto Gift Shop, 1st Floor Business National Park Aquarium Fl1 Business Type Attraction 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

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210 Central Avenue Street Number 210 Property Owner Weir Building Year Built 1889 PVA Grade C3 Use Commercial Total Square Footage 7,992 Number of Floors 3 Commercial Square 7,992 Footage Residential Square 0 Footage 1st Floor Business Rolando's Fl1 Business Type Retail 2nd Floor Occupant Rolando's

Fl2 Business Type Retail 3rd Floor Occupant D Photo Works Fl3 business type Office

212-218 Central Avenue Street Number 212-218 212-218 LLC/ Kelley Property Owner Anne Ardman DeSalvo Year Built 1930 PVA Grade A Use Commercial Total Square Footage 5,793 Number of Floors 1 Commercial Square 5,793 Footage Residential Square 0 Footage The Savory Pantry, The Pancake Shop, 1st Floor Business Oh Snap! Boutique, The Silver Coconut Fl1 Business Type Retail 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

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220 Central Avenue 220 Property Owner 220 Central LLC Year Built 1910 PVA Grade A Use Commercial Total Square Footage 1,464 Number of Floors 1 Commercial Square 1,464 Footage Residential Square 0 Footage 1st Floor Business Vacant Fl1 Business Type - 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

Parking Lot – 223 Central Ave Street Number 223 Property Owner - Year Built - PVA Grade - Use - Total Square Footage - Number of Floors - Commercial Square - Footage Residential Square - Footage 1st Floor Business Parking lot Fl1 Business Type - 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

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224-230 Central Avenue Street Number 224-230 D & J Resort Holdings, Property Owner LLC Year Built - PVA Grade Use Surface Lot Total Square Footage 19,079 Number of Floors 0 Commercial Square 0 Footage Residential Square 0 Footage 1st Floor Business Parking Lot Fl1 Business Type Parking 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

Vacant – 231 Central Ave Street Number 231 Property Owner - Year Built - PVA Grade - Use - Total Square Footage - Number of Floors - Commercial Square - Footage Residential Square - Footage 1st Floor Business Vacant Fl1 Business Type - 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

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236 Central Avenue Street Number 236-1 Medical Arts Tower Property Owner HPR Information Only Card Year Built - PVA Grade - Use Commercial Total Square Footage - Number of Floors - Commercial Square - Footage Residential Square 0 Footage 1st Floor Business Snazzies Fl1 Business Type Retail

2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

238-240 Central Avenue Street Number 238-240 Property Owner Aristocrat Manor, LTD Year Built 1964 PVA Grade B3 Use Residential Total Square Footage 89,926 Number of Floors 7 Commercial Square 0 Footage Residential Square 89,926 Footage 1st Floor Business NA Fl1 Business Type Residential 2nd Floor Occupant Resident Fl2 Business Type Residential

3rd Floor Occupant Occupied/Vacant Fl3 business type Residential

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239 Central Avenue Street Number 239 Property Owner Southwest Hotels, Inc Year Built 1930 PVA Grade B3 Use Commercial Total Square Footage 375,802 Number of Floors 11 Commercial Square 375,802 Footage Residential Square 0 Footage Arlington Hotel, 1st Floor Business Cynthia's Galleria inside Arlington Hotel Fl1 Business Type Hospitality 2nd Floor Occupant The Arlington Fl2 Business Type Hospitality 3rd Floor Occupant The Arlington Fl3 business type Hospitality

244-250 Central Avenue Street Number 244-250 Property Owner 250 Central LLC Year Built 1893 PVA Grade C3 Use Commercial Total Square Footage 20,318 Number of Floors 2 Commercial Square 20,318 Footage Residential Square 0 Footage 1st Floor Business Wax Museum Fl1 Business Type Attraction 2nd Floor Occupant Wax Museum Fl2 Business Type Attraction

3rd Floor Occupant - Fl3 business type -

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252-264 Central Avenue Street Number 252-264 Property Owner Notjusttalking, LLC Year Built 1895 PVA Grade C3 Mixed Use Use/Warehouse Total Square Footage 44,375 Number of Floors 5 Commercial Square 10,067 Footage Residential Square 0 Footage The Bath Factory, Vacant, Vacant, 1st Floor Business Vacant, Spa City Convenience Store Fl1 Business Type Retail 2nd Floor Occupant Vacant Fl2 Business Type Warehouse 3rd Floor Occupant - Fl3 business type -

316-320 Central Avenue Street Number 316-320 Property Owner Wheatley Family LLLP Year Built 1920 PVA Grade C3 Mixed Use Use/Warehouse Total Square Footage 6,238 Number of Floors 2 Commercial Square 3,119 Footage Residential Square 0 Footage The Emerald Peacock, 1st Floor Business Ricky's, Old Time Photo Fl1 Business Type Retail 2nd Floor Occupant Vacant Fl2 Business Type Warehouse 3rd Floor Occupant - Fl3 business type -

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322-326 Central Avenue Street Number 322-326 Bridges, Don H & Property Owner Mary Beth Year Built - PVA Grade - Use Surface Lot Total Square Footage 23,478 Number of Floors 0 Commercial Square 0 Footage Residential Square 0 Footage 1st Floor Business Parking Lot Fl1 Business Type Parking 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

328-330 Central Avenue Street Number 328-330 Hessell, Debbie Wheatley Trust Property Owner Wheatley, Kenneth R Trustee Year Built 1910 PVA Grade C3 Mixed Use Use/Warehouse Total Square Footage 4,173 Number of Floors 1 Commercial Square 2,504 Footage Residential Square 0 Footage Che Julie's Gifts, 1st Floor Business Pickle's Pet Petpourri

Fl1 Business Type Retail 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

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332-334 Central Avenue Street Number 332-334 Property Owner Wheatley Family LLLP Year Built 1910 PVA Grade C3 Use Mixed Use Total Square Footage 7,918 Number of Floors 2 Commercial Square 3,719 Footage Residential Square 3,719 Footage Central Park Mining 1st Floor Business Spa Souvenirs Fl1 Business Type Retail 2nd Floor Occupant Resident Fl2 Business Type Residential 3rd Floor Occupant - Fl3 business type -

336 Central Avenue Street Number 336 Hassell, Debbie Wheatley Trust Property Owner Wheatley, Kenneth R. Trustee Year Built 1910 PVA Grade C3 Use Commercial Total Square Footage 3,356 Number of Floors 2 Commercial Square 3,356 Footage Residential Square 0 Footage 1st Floor Business The Ohio Club Fl1 Business Type Retail 2nd Floor Occupant The Ohio Club Fl2 Business Type Retail 3rd Floor Occupant - Fl3 business type -

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338-342 Central Avenue Street Number 338-342 Property Owner TKZ LLC Year Built 1900 PVA Grade C2 Mixed Use Use/Warehouse Total Square Footage 39,970 Number of Floors 5 Commercial Square 9,434 Footage Residential Square 0 Footage Fudge Factory, 1st Floor Business Art by the Park, Vacant Fl1 Business Type Retail 2nd Floor Occupant Vacant Fl2 Business Type Warehouse 3rd Floor Occupant Vacant Fl3 business type Warehouse

344-348 Central Avenue Street Number 344-348 Property Owner Marcus & Marcus Year Built 1907 PVA Grade C3 Mixed Use Use/Warehouse Total Square Footage 8,458 Number of Floors 2 Commercial Square 4,226 Footage Residential Square 0 Footage Maharaja Boutique, 1st Floor Business Toy Chest Fl1 Business Type Retail 2nd Floor Occupant Vacant

Fl2 Business Type Warehouse 3rd Floor Occupant - Fl3 business type -

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350-352 Central Avenue Street Number 350-352 Hassell, Debbie Wheatley Trust Property Owner Wheatley, Kenneth R. Trustee Year Built 1908 PVA Grade C3 Mixed Use Use/Warehouse Total Square Footage 11,160 Number of Floors 3 Commercial Square 4,500 Footage Residential Square 0 Footage Earthbound Trading 1st Floor Business Co. Fl1 Business Type Retail 2nd Floor Occupant Vacant Fl2 Business Type Warehouse 3rd Floor Occupant Vacant Fl3 business type Warehouse

354 Central Avenue Street Number 354 Property Owner City of Hot Springs Year Built - PVA Grade Use Public Space Total Square Footage 6,350 Number of Floors 0 Commercial Square 0 Footage Residential Square 0 Footage 1st Floor Business Pocket Park Fl1 Business Type Public Space 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

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360-366 Central Avenue Street Number 360-366 Property Owner Wheatley Family LLLP Year Built 1897 PVA Grade C3 Use Commercial Total Square Footage 5,842 Number of Floors 1 Commercial Square 5,842 Footage Residential Square 0 Footage No Clothes, Granny's Kitchen, 1st Floor Business National Park Outfitters, Bathhouse Soapery Fl1 Business Type Retail 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

370 Central Avenue Street Number 370 Property Owner Tom & Mary Daniel Year Built 1871 PVA Grade C3 Mixed Use Use/Warehouse Total Square Footage 8,455 Number of Floors 2 Commercial Square 4,039 Footage Residential Square 0 Footage National Park Gifts & 1st Floor Business Souvenirs Fl1 Business Type Retail 2nd Floor Occupant Vacant Fl2 Business Type Warehouse 3rd Floor Occupant - Fl3 business type -

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401 Hot Springs Mountain Drive Street Number 325-515 Property Owner USA Year Built - PVA Grade - Use - Total Square Footage - Number of Floors - Commercial Square - Footage Residential Square - Footage 1st Floor Business Bathhouse Row Fl1 Business Type - 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

402 Central Avenue Street Number 402 Property Owner Lauray's, Inc Year Built 1880 PVA Grade C3 Use Commercial Total Square Footage 2,356 Number of Floors 1 Commercial Square 2,356 Footage Residential Square 0 Footage Lauray's, Cynthia's 1st Floor Business Garden Gallery Fl1 Business Type Retail 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

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404 Central Avenue Street Number 404 Fleischner Family Trust 1/2 INT& Property Owner Fleischner, Mark H 1/2 INT Year Built 1920 PVA Grade C3 Mixed Use Use/Warehouse Total Square Footage 5,190 Number of Floors 2 Commercial Square 2,595 Footage Residential Square 0 Footage 1st Floor Business The Mountain's Edge Fl1 Business Type Retail 2nd Floor Occupant The Mountain’s Edge Fl2 Business Type Office 3rd Floor Occupant - Fl3 business type -

408 Central Avenue Street Number 408 Bridges, Don H & Property Owner Mary Beth Year Built 1925 PVA Grade C3 Use Commercial Total Square Footage 2,254 Number of Floors 1 Commercial Square 2,254 Footage Residential Square 0 Footage

1st Floor Business Bubbalou's Burgers Fl1 Business Type Retail 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

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410 Central Avenue Street Number 410 Pine Bluff Port Property Owner Terminal Inc. Year Built 1925 PVA Grade C3 Use Commercial Total Square Footage 1,983 Number of Floors 1 Commercial Square 1,983 Footage Residential Square 0 Footage 1st Floor Business Stella Mae's Fl1 Business Type Retail 2nd Floor Occupant - Fl2 Business Type -

3rd Floor Occupant - Fl3 business type -

412-416 Central Avenue Street Number 412-416 Property Owner Wheatley Family LLLP Year Built 1930 PVA Grade C3 Mixed Use Use/Warehouse Total Square Footage 12,536 Number of Floors 2 Commercial Square 7,482 Footage Residential Square 0 Footage Jigglin' Georges, 1st Floor Business Ginger's Popcorn, All Things Natural Fl1 Business Type Retail 2nd Floor Occupant Vacant Fl2 Business Type Warehouse 3rd Floor Occupant - Fl3 business type -

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418 Central Avenue Street Number 418 Property Owner 418 Central LLC Year Built 1930 PVA Grade C3 Use Commercial Total Square Footage 2,428 Number of Floors 1 Commercial Square 2,428 Footage Residential Square 0 Footage 1st Floor Business Duck Tours Fl1 Business Type Attraction 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

420-422 Central Avenue Street Number 420-422 Property Owner Wheatley Family LLLP Year Built 1930 PVA Grade C3 Mixed Use Use/Warehouse Total Square Footage 18,536 Number of Floors 3 Commercial Square 6,148 Footage Residential Square 0 Footage Puttin on the Glitz, 1st Floor Business Bear Necessities Fl1 Business Type Retail 2nd Floor Occupant Vacant Fl2 Business Type Warehouse 3rd Floor Occupant Vacant Fl3 business type Warehouse

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424 Central Avenue Street Number 424 Pine Bluff Port Property Owner Terminal, Inc Year Built 1893 PVA Grade C3 Mixed Use Use/Bed&Breakfast Total Square Footage 6,896 Number of Floors 2 Commercial Square 3,308 Footage Residential Square 0 Footage 1st Floor Business Springs Wear Fl1 Business Type Retail 2nd Floor Occupant Bed and Breakfast Fl2 Business Type Hospitality

3rd Floor Occupant - Fl3 business type -

430 Central Avenue Street Number 430 Property Owner Wheatley Family LLLP Year Built PVA Grade Use Parking Surface Total Square Footage 12,763 Number of Floors 0 Commercial Square 0 Footage Residential Square 0 Footage 1st Floor Business Parking lot Fl1 Business Type Parking 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

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504 Central Avenue Street Number 504 Property Owner Wheatley Family LLLP Year Built PVA Grade Use Parking Surface Total Square Footage 10,367 Number of Floors 0 Commercial Square 0 Footage Residential Square 0 Footage 1st Floor Business Parking Lot Fl1 Business Type Parking 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

510 Central Avenue Street Number 510 Property Owner Thrash, E M Inc Year Built 1960 PVA Grade C3 Use Commercial Total Square Footage 8,554 Number of Floors 1 Commercial Square 0 Footage Residential Square 0 Footage 1st Floor Business Gangster Museum Fl1 Business Type Attraction 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

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514 Central Avenue Street Number 514 Tucker, Dr. Paul Retirement Plan & Property Owner Trust, Tucker, R Paul MD Year Built 1890 PVA Grade C3 Use Commercial Total Square Footage 4,984 Number of Floors 2 Commercial Square 4,984 Footage Residential Square 0 Footage Histroric District 1st Floor Business Antiques Fl1 Business Type Retail Historic District 2nd Floor Occupant Antiques Fl2 Business Type Retail 3rd Floor Occupant - Fl3 business type -

516 Central Avenue Street Number 516 Tucker, R Paul & S Property Owner Bernard Year Built 1890 PVA Grade C3 Use Mixed Use Total Square Footage 4,272 Number of Floors 2 Commercial Square 2,136 Footage Residential Square 2,136 Footage 1st Floor Business Petals, Purses, Etc. Fl1 Business Type Retail 2nd Floor Occupant Resident Fl2 Business Type Residential 3rd Floor Occupant - Fl3 business type -

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518-520 Central Avenue Street Number 518-520 Property Owner Fencal Properties LLC Year Built 1890 PVA Grade C3 Use Mixed Use Total Square Footage 7,453 Number of Floors 2 Commercial Square 3,726 Footage Residential Square 3,726 Footage 1st Floor Business Vacant Fl1 Business Type Vacant 2nd Floor Occupant Vacant Fl2 Business Type Residential 3rd Floor Occupant - Fl3 business type -

524 Central Avenue Street Number 524 Martin Marietta Property Owner Materials Inc Year Built 1934 PVA Grade C3 Use Office/Warehouse Total Square Footage 22,178 Number of Floors 3 Commercial Square 7,606 Footage Residential Square 0 Footage 1st Floor Business Martin Marietta Fl1 Business Type Service 2nd Floor Occupant Vacant Fl2 Business Type Warehouse 3rd Floor Occupant Vacant Fl3 business type Warehouse

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528 Central Avenue Street Number 528 HSR Block 87 LLC C/O Property Owner Greyhawke Capital Advisors Year Built 1970 PVA Grade B3 Use Commercial Total Square Footage 43,952 Number of Floors 6 Commercial Square 43,952 Footage Residential Square 0 Footage 1st Floor Business Vacant Fl1 Business Type Office 2nd Floor Occupant Vacant Fl2 Business Type Office 3rd Floor Occupant Vacant Fl3 business type Office

600 Central Avenue Street Number 600 Property Owner Landmark Holding LTD Year Built 1923 PVA Grade C2 Use Mixed Use Total Square Footage 5,350 Number of Floors 2 Commercial Square 2,675 Footage Residential Square 2,675 Footage Angel's Italian 1st Floor Business Restaurant

Fl1 Business Type Retail Angel’s Italian 2nd Floor Occupant Restaurant Fl2 Business Type Office 3rd Floor Occupant - Fl3 business type -

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610 Central Avenue Street Number 610 Xu, Longhua & Chen, Property Owner Shunying Year Built 1904 PVA Grade C2 Mixed Use Use/Warehouse Total Square Footage 26,073 Number of Floors 4 Commercial Square 7,002 Footage Residential Square 19,071 Footage Fine Art Gallery, Vina 1st Floor Business Morita All Things Arkansas Fl1 Business Type Retail 2nd Floor Occupant Resident Fl2 Business Type Residential 3rd Floor Occupant Occupied Fl3 business type Residential

620 Central Avenue Street Number 620 Nagin-Callahan Real Property Owner Estate Co Year Built 1920 PVA Grade C2 Use Mixed Use Total Square Footage 28,796 Number of Floors 3 Commercial Square 14,398 Footage Residential Square 4,319 Footage US Post Office, Crystal 1st Floor Business Springs Gallery Fl1 Business Type Government 2nd Floor Occupant Office Fl2 Business Type Government 3rd Floor Occupant Occupied Fl3 business type Residential

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626 Central Avenue Street Number 626 Property Owner Maruther, Peggy Trust Year Built 1920 PVA Grade C3 Mixed Use Use/Warehouse Total Square Footage 4,860 Number of Floors 2 Commercial Square 2,430 Footage Residential Square 0 Footage Hot Springs Fine Arts 1st Floor Business Center Fl1 Business Type Attraction

2nd Floor Occupant Vacant Fl2 Business Type Warehouse 3rd Floor Occupant - Fl3 business type -

629 Central Ave Street Number 605-629 Property Owner Hot Springs, City of Year Built 1996 PVA Grade D4 Use Surface Lot Total Square Footage - Number of Floors - Commercial Square - Footage Residential Square - Footage Parking Lot with Info 1st Floor Business Center Fl1 Business Type - 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

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Surface Lot – Central Ave Street Number - Property Owner Boykin, Karen M Year Built - PVA Grade - Use Surface Lot Total Square Footage - Number of Floors 0 Commercial Square 0 Footage Residential Square 0 Footage 1st Floor Business Parking Lot Fl1 Business Type Parking 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

700-702 Central Avenue Street Number 700-702 Hessell, Debbie Wheatley Trust Property Owner Wheatley Kenneth R Trustee Year Built 1895 PVA Grade C3 Mixed Use Use/Warehouse Total Square Footage 3,108 Number of Floors 2 Commercial Square 1,530 Footage Residential Square 0 Footage 1st Floor Business Maxine's Fl1 Business Type Retail 2nd Floor Occupant Vacant Fl2 Business Type Warehouse

3rd Floor Occupant - Fl3 business type -

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706 Central Avenue Street Number 706 Let Industries Group Property Owner LTD Year Built 1895 PVA Grade C3 Mixed Use Use/Warehouse Total Square Footage 4,500 Number of Floors 2 Commercial Square 2,250 Footage Residential Square 0 Footage 1st Floor Business Oxy-Zen Fl1 Business Type Retail 2nd Floor Occupant Vacant Fl2 Business Type Warehouse 3rd Floor Occupant - Fl3 business type -

707 Central Avenue Street Number 707 Property Owner HKH Investments LLC Year Built 1925 PVA Grade C3 Mixed Use Use/Warehouse Total Square Footage 9,774 Number of Floors 2 Commercial Square 4,887 Footage Residential Square 0 Footage Five Star Dinner 1st Floor Business Theatre Fl1 Business Type Attraction 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

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708-714 Central Avenue Street Number 708- 714 Property Owner Seven Fourteen LLC Year Built 1925 PVA Grade C3 Use Mixed Use/Office Total Square Footage 15,792 Number of Floors 2 Commercial Square 6,317 Footage Residential Square 0 Footage The Regency Banquet 1st Floor Business Hall Fl1 Business Type Retail The Regency Banquet 2nd Floor Occupant Hall Fl2 Business Type Assembly 3rd Floor Occupant - Fl3 business type -

709 Central Avenue Street Number 709 Porterhouse Central Property Owner LLC Year Built 1925 PVA Grade C3 Use Commercial Total Square Footage 12,382 Number of Floors 2 Commercial Square 12,382 Footage Residential Square 0 Footage 1st Floor Business Porterhouse Fl1 Business Type Retail 2nd Floor Occupant Porterhouse Fl2 Business Type Retail 3rd Floor Occupant Fl3 business type

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711 Central Avenue Street Number 711 Property Owner 711 Building LLC Year Built 1925 PVA Grade C3 Use Commercial Total Square Footage 2,436 Number of Floors 1 Commercial Square 2,435 Footage Residential Square 0 Footage 1st Floor Business Copper Penny Pub Fl1 Business Type Retail 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

718 Central Avenue Street Number 718 Property Owner Kesterson, Stephen Year Built 1925 PVA Grade C3 Use Mixed Use Total Square Footage 6,300 Number of Floors 2 Commercial Square 3,150 Footage Residential Square 3,150 Footage 1st Floor Business Vacant Fl1 Business Type Vacant 2nd Floor Occupant Resident Fl2 Business Type Residential 3rd Floor Occupant

Fl3 business type

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719 Central Avenue Street Number 719 Property Owner Gargano, Penelope A Year Built 1925 PVA Grade C3 Mixed Use Use/Warehouse Total Square Footage 20,640 Number of Floors 2 Commercial Square 8,256 Footage Residential Square 0 Footage 1st Floor Business Belle Arti Fl1 Business Type Retail 2nd Floor Occupant Belle Arti Fl2 Business Type Retail 3rd Floor Occupant - Fl3 business type -

720 Central Avenue Street Number 720 Montgomery, John C Property Owner Jr & Cushing, Deborah Year Built 1925 PVA Grade C3 Use Commercial Total Square Footage 3,560 Number of Floors 1 Commercial Square 3,560 Footage Residential Square 0 Footage 1st Floor Business Vacant Fl1 Business Type Vacant 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

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721 Central Avenue Street Number 721 Property Owner Landmark Holding LTD Year Built - PVA Grade - Use - Total Square Footage - Number of Floors - Commercial Square - Footage Residential Square - Footage 1st Floor Business Vacant Fl1 Business Type - 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

723 Central Avenue Street Number 723 Property Owner Landmark Holding LTD Year Built 1925 PVA Grade B3 Use Warehouse Total Square Footage 17,983 Number of Floors 7 Commercial Square 0 Footage Residential Square 0 Footage 1st Floor Business Vacant Fl1 Business Type Warehouse 2nd Floor Occupant Vacant Fl2 Business Type Warehouse 3rd Floor Occupant Vacant Fl3 business type Warehouse

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724 Central Avenue Street Number 724 American Art Gallery Property Owner and Gift LLC Year Built 1925 PVA Grade C3 Use Commercial Total Square Footage 3,150 Number of Floors 2 Commercial Square 3,150 Footage Residential Square 0 Footage 1st Floor Business American Art Galley Fl1 Business Type Retail 2nd Floor Occupant American Art Gallery Fl2 Business Type Retail 3rd Floor Occupant - Fl3 business type -

726 Central Avenue Street Number 726 Let Industries Group Property Owner LTD Year Built 1900 PVA Grade C3 Mixed Use Use/Warehouse Total Square Footage 3,150 Number of Floors 2 Commercial Square 1,640 Footage Residential Square 0 Footage Taylor Bellot Nature 1st Floor Business Gallery Fl1 Business Type Retail 2nd Floor Occupant Vacant Fl2 Business Type Warehouse 3rd Floor Occupant - Fl3 business type -

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728 Central Ave Street Number 728 Property Owner Hot Springs, City of Year Built PVA Grade Use Surface Lot Total Square Footage - Number of Floors 0 Commercial Square 0 Footage Residential Square 0 Footage 1st Floor Business parking lot Fl1 Business Type Parking 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

800 Central Avenue Street Number 800 Palmer, Linda J Inter Property Owner Vivos TR Year Built 1904 PVA Grade C3 Use Mixed Use Total Square Footage 6,711 Number of Floors 2 Commercial Square 4,362 Footage Residential Square 2,349 Footage Gallery Central, Linda 1st Floor Business Palmer Art Gallery Fl1 Business Type Retail 2nd Floor Occupant Gallery

Fl2 Business Type Retail 3rd Floor Occupant - Fl3 business type -

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801 Central Avenue Street Number 801 Property Owner Rika Properties Year Built 1930 PVA Grade C3 Use Commercial Total Square Footage 7,887 Number of Floors 2 Commercial Square 7,887 Footage Residential Square 0 Footage Subway, Picante's 1st Floor Business Brickhouse Grill, Steinhouse Kellar Fl1 Business Type Retail 2nd Floor Occupant Gary Morris Designs Fl2 Business Type Retail 3rd Floor Occupant Fl3 business type

802 Central Avenue Street Number 802 Sharples, T D, JR & Property Owner Shirley Year Built 1920 PVA Grade C3 Use Mixed Use Total Square Footage 5,905 Number of Floors 3 Commercial Square 1,951 Footage Residential Square 3,902 Footage Alison Parson's 1st Floor Business Gallery Fl1 Business Type Retail 2nd Floor Occupant Resident Fl2 Business Type Residential 3rd Floor Occupant Vacant Fl3 business type Residential

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804 Central Avenue Street Number 804 Cadow, Robert E III & Property Owner Venetia L Year Built 1920 PVA Grade C3 Use Mixed Use/Office Total Square Footage 6,040 Number of Floors 2 Commercial Square 3,520 Footage Residential Square 0 Footage 1st Floor Business Legacy Fine Arts Fl1 Business Type Retail 2nd Floor Occupant Vacant Fl2 Business Type Office 3rd Floor Occupant - Fl3 business type -

808-810 Central Avenue Street Number 808-810 Chen Cu Properties, Property Owner LLC Year Built 1922 PVA Grade C3 Use Commercial Total Square Footage 2,920 Number of Floors 1 Commercial Square 2,920 Footage Residential Square 0 Footage Christian Science 1st Floor Business Reading Room, Star Gallery Fl1 Business Type Retail 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

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812 Central Avenue Street Number 812 Gartenberg Fam Ltd Prtshp 60% & Property Owner Gartenberg, Michael W Rev TR 40% Year Built PVA Grade Use Commercial Total Square Footage Number of Floors 2 Commercial Square 0 Footage Residential Square 0 Footage 1st Floor Business Townsend Gifts Fl1 Business Type 2nd Floor Occupant Fl2 Business Type 3rd Floor Occupant Fl3 business type

817-823 Central Avenue Street Number 817-823 Property Owner Summit Properties LLC Year Built 1946 PVA Grade C3 Use Commercial Total Square Footage 9,182 Number of Floors 2 Commercial Square 9,182 Footage Residential Square 0 Footage 1st Floor Business Vacant Fl1 Business Type Vacant 2nd Floor Occupant Vacant Fl2 Business Type 3rd Floor Occupant Fl3 business type

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818 Central Avenue Street Number 818 Loblolly Development Property Owner LLC Year Built - PVA Grade Use Surface Lot Total Square Footage Number of Floors 0 Commercial Square 0 Footage Residential Square 0 Footage 1st Floor Business Parking Lot Fl1 Business Type Parking 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

825 Central Avenue Street Number 825 French, David Property Owner Markham & Melinda Year Built 1900 PVA Grade C3 Mixed Use Use/Warehouse Total Square Footage 6,660 Number of Floors 3 Commercial Square 2,210 Footage Residential Square 0 Footage Southern 1st Floor Business Reprographics Fl1 Business Type Retail Southern 2nd Floor Occupant Reprographics Fl2 Business Type Office 3rd Floor Occupant - Fl3 business type -

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827 Central Avenue Street Number 827 French, David Property Owner Markham & Melinda Year Built 1900 PVA Grade C3 Use Mixed Use/Office Total Square Footage 4,414 Number of Floors 2 Commercial Square 2,189 Footage Residential Square 0 Footage 1st Floor Business Justus Fine Arts Fl1 Business Type Retail 2nd Floor Occupant Justus Fine Arts Fl2 Business Type Office 3rd Floor Occupant - Fl3 business type -

829 Central Avenue Street Number 829 Central Rev Living Property Owner Trust Year Built 1908 PVA Grade C3 Use Commercial Total Square Footage 2,195 Number of Floors 1 Commercial Square 2,195 Footage Residential Square 0 Footage 1st Floor Business John's Shoe Hospital Fl1 Business Type Retail 2nd Floor Occupant - Fl2 Business Type - 3rd Floor Occupant - Fl3 business type -

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831 Central Avenue Street Number 831 De Renouard, Eric & Property Owner Wanda Year Built 1925 PVA Grade C3 Use Mixed Use Total Square Footage 4,806 Number of Floors 2 Commercial Square 2,403 Footage Residential Square 2,403 Footage 1st Floor Business Freedom United Salon Fl1 Business Type Retail 2nd Floor Occupant Resident Fl2 Business Type Residential 3rd Floor Occupant - Fl3 business type -

833 Central Avenue Street Number 833 Property Owner Summit Properties LLC Year Built 1925 PVA Grade C3 Mixed Use Use/Warehouse Total Square Footage 6,396 Number of Floors 2 Commercial Square 3,198 Footage Residential Square 0 Footage 1st Floor Business Vacant Fl1 Business Type Vacant 2nd Floor Occupant Vacant Fl2 Business Type Warehouse 3rd Floor Occupant - Fl3 business type -

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TABLE OF CONTENTS

TABLE OF CONTENTS ...... 2 I. EXECUTIVE SUMMARY ...... 5 Introduction ...... 6 II. CURRENT BROADBAND ENVIRONMENT ...... 7 What exactly is Broadband? ...... 7 Who are the Key Policy Players? ...... 10 The Future of Broadband ...... 11 III. BROADBAND ACCESS ASSESSMENT ...... 12 Mapping Broadband Availability...... 13 Connect Arkansas ...... 14 Garland County and Hot Springs Broadband Availability ...... 16 IV. BROADBAND DEMAND ASSESSMENT ...... 18 Residential Broadband Survey Highlights ...... 18 Business Broadband Survey Highlights ...... 19 V. BROADBAND DRIVEN ECONOMIC DEVELOPMENT ...... 20 Broadband for Economic Development ...... 20 The Economic Case for Faster Speeds ...... 20 The Quality of Life Case for Faster Speeds ...... 22 VI. COMMUNITY-LED BROADBAND ...... 24 Developing a Framework for Community Change ...... 24 VII. ENABLING ACTION & REMOVING BARRIERS ...... 32 1. Strategies for Ensuring Access and Facilitating Utilization of Key Assets ...... 33 2. Strategies for Streamlining Essential Local Processes ...... 44 3. Making Useful Information Accessible ...... 45 VIII. COMMUNITY-DRIVEN WI-FI ...... 48 How to Create a Wi-Fi Zone ...... 48 Wi-Fi Zone Case Studies ...... 52 IX. A DIGITALLY INCLUSIVE HOT SPRINGS ...... 54 Who’s Offline? ...... 54 Arkansas Broadband Adoption ...... 57 Hot Springs Broadband Adoption ...... 58

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Starting a Broadband Adoption Program ...... 59 X. FUNDING OPPORTUNITIES ...... 64 1. U.S. Department of Agriculture Rural Development ...... 64 2. Federal Communications Commission ...... 65 3. U.S. Economic Development Administration ...... 68 4. U.S. Department of Housing and Urban Development...... 69 XI. RELEVANT ARKANSAS INITIATIVES ...... 70 Connect Arkansas ...... 70 Arkansas Broadband Advisory Council ...... 70 UAMS Center for Distance Health and Arkansas e-Link...... 70 Arkansas Research Education Optical Network (ARE-ON) ...... 71 Arkansas Public School Computer Network (APSCN-Department of Information Systems) ...... 71 FirstNet ...... 71 Appendix A: Glossary and Related Case Studies and Tools ...... 72 Relevant Organizations and Reports ...... 76 Appendix B: Broadband Inventory...... 77 Garland County Broadband Availability ...... 77 Hot Springs Broadband Availability ...... 80 Appendix C: Residential Broadband Survey Results ...... 83 Appendix D: Business Broadband Survey Results ...... 98

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I. EXECUTIVE SUMMARY

Thomas P. Miller and Associates (TPMA) has been commissioned by the West Central Arkansas Planning and Development District and the Hot Springs Metro Partnerships to create the Hot Springs Comprehensive Redevelopment Strategy. The goal of the Redevelopment Strategy is to provide strategy for future economic development investments, strengthening the community’s competitiveness.

As part of the Redevelopment Strategy, TPMA developed this Strategy Guide for Accelerating Local Broadband Supply and Demand. This Strategy Guide was designed to empower Hot Springs to take control of the factors that shape their local broadband ecosystem, increase community knowledge and enable informed action. The report emphasizes local participation, the identification and leveraging of local assets, and a collaborative effort to accelerate local broadband supply and demand, led by the Hot Springs Broadband Leadership Council.

While there is much regulatory activity for telecommunications and broadband networks at a federal level, broadband truly is a local issue for communities, and local leaders have vital roles to play in promoting the development of broadband. The infrastructure deployed in communities defines how their residents, businesses, and anchors interact in the digital world. While there isn’t a standardized level at which broadband service in a community is deemed “adequate,” the goal of community leaders should be to ensure that residents and businesses have access to a connection that does not limit application, as well as the skills to utilize the connection to derive value.

This Strategy Guide is designed to provide a comprehensive overview of the national and local broadband ecosystem, and to provide strategy for the Hot Springs Broadband Leadership Council to move forward. It is organized to provide insight into the following topics:

 Broadband Access Assessment: overview of national, state, and local broadband availability.  Broadband Demand Assessment: highlights from residential and business broadband demand surveys.  Community-Led Broadband: a framework for Hot Springs to take an active role in accelerating the deployment of next generation networks.  Enabling Action and Removing Barriers: best practices for Hot Springs to facilitate private investment in broadband deployment by optimizing local processes that impact deployment times and costs.  Community-Driven Wi-Fi: guidelines and best practices for developing a Hot Springs Wi-Fi zone.  Building a Digitally Inclusive Hot Springs: guidelines and best practices for increasing broadband adoption and creating a digitally inclusive Hot Springs.  Funding Opportunities: Guide to federal funding opportunities.

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Introduction In the 1870s, the first railroad to Hot Springs brought visitors and economic rejuvenation to the community’s faltering post-Civil War economy. In the 1930s, hydroelectric power improved quality of life and turned the sleepy community into a tourism and gambling mecca. In the 1950s, Hot Springs residents were connected to an interstate highway system that fueled jobs in high-tech manufacturing in Dallas and logistics in Memphis. During the same time, telephony, radio, and television transformed the community, and the country, unleashing new opportunities for innovators to create products and industries, new ways for citizens to engage and acquire education, and a new foundation for job growth.

Throughout history, infrastructure networks have been platforms for significant economic, cultural, and social transformation, overcoming distance and transcending the limitations of physical surroundings. Today, high-speed internet is transforming the landscape more rapidly and more pervasively than earlier infrastructure networks. Like railroads and highways, broadband accelerates the velocity of commerce, reducing costs and distance. Like electricity, it creates a platform for Hot Springs’ creativity to lead in developing better ways to solve old problems. Like telephony and broadcasting, it expands the community’s ability to communicate, inform, and entertain.

Deploying broadband infrastructure, services, and applications, as well as supporting the universal adoption and meaningful use of broadband, are challenging – but required – building blocks of a twenty first century community. Broadband is not just a technology, it’s a platform for opportunity. For businesses, broadband has become a driving force behind competitiveness, innovation, and efficiency. For a community, affordable, available access to broadband means the difference between thriving and becoming obsolete.

But as with electricity and telephony, ubiquitous connections are means, not ends. It is what those connections enable that matters. A broadband network can only create value when it is used to deliver useful applications and content that enrich the user’s life, and in turn, the community. Thus, as broadband becomes a prerequisite for community and economic development, communities without high-speed broadband access or a population with the skills to utilize broadband-enabled technologies are becoming increasingly isolated from the modern economy.

The consequences of the digital transformation will impact every community differently and may not be uniformly positive. But the choice is not whether the transformation will continue. It will. The choice is whether community leaders will understand this transformation in a way that allows them to make wise decisions about how broadband can serve the public interest.

A glossary of broadband related terms is provided in Appendix A.

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II. CURRENT BROADBAND ENVIRONMENT

Realizing the importance of broadband to the development of our nation, the Federal government has taken a significant role in creating public policy and funding programs to accelerate the development of broadband and enhance existing infrastructure. Then- Chairman of the Federal Communications Commission (FCC), Julius Genachowski, stated:

“Broadband is the indispensable infrastructure of the digital age – the 21st Century equivalent of what canals, railroads, highways, the telephone, and electricity were for previous generations.”1

In early 2009, Congress directed the FCC to develop a National Broadband Plan to ensure that every American has access to broadband capability. Congress also required this plan to include a detailed strategy for achieving affordability and maximize the use of broadband to advance “consumer welfare, civic participation, public safety and homeland security, community development, health care delivery, energy independence and efficiency, education, employee training, private sector investment, entrepreneurial activity, job creation and economic growth, and other national purposes.”2 The following goals set out in the National Broadband Plan apply specifically to expansion of these critical services in communities across the country.

 Goal Number 1: At least 100 million U.S. homes should have affordable access to actual download speeds of at least 100 Megabits per second and actual upload speeds of at least 50 Megabits per second, by 2020.  Goal Number 2: The United States should lead the world in mobile innovation, with the fastest and most extensive wireless networks of any nation.  Goal Number 3: Every American should have affordable access to robust broadband service, and the means and skills to subscribe if they so choose.  Goal Number 4: Every American community should have affordable access to at least 1 Gigabit per second broadband service to anchor What exactly is Broadband? When you connect to the internet, you’re almost certainly using a form of broadband connection. Broadband internet access, referred to as just “broadband” or high-speed internet, refers to internet access technology which a wide band of frequencies is available to transmit information. Because the band is “broadband,” information can be concurrently sent on different frequencies or channels within the band, allowing for more information to be transmitted in a given time. It can be useful to envision narrowband as a single lane road, and broadband as an ever-expanding, multi-lane highway. Internet services providers can provide broadband internet access via regular copper wire (Digital Subscriber Line), coaxial cable (cable internet), fiber optic, or satellite.

 Broadband is measured in bits per second.  Broadband speed refers the how fast a user can download and upload files.  Download is the speed, measured in bits, that your computer receives data.

1 https://apps.fcc.gov/edocs_public/attachmatch/DOC-297733A1.txt 2 http://www.broadband.gov/plan/executive-summary

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 Upload is the speed that your computer sends data.

As internet technology has improved over the past several years, the definition of what constitutes “broadband internet” has also changed. In 1999, the FCC defined advanced telecommunications capability to include 200 kilobits per second (Kbps) upload and download. In 2009, Arkansas Act 947 defined broadband as any service used to provide internet access at a minimum speed that is greater than 768 Kbps in at least one direction, or the minimum speed for broadband as defined by regulations of the FCC as of January 1, 2009, or as of a later date if adopted by rule of the Arkansas Broadband Advisory Council.3

In 2010, the FCC established a benchmark of 4 megabits per second (Mbps) download and 1 Mbps upload to define broadband. However, trends in deployment and adoption, the speeds that providers are offering today, and the speeds required to use high-quality video, data, voice, and other broadband applications led the FCC to update the definition of broadband in 2015 to download speeds of at least 25 Mbps and actual upload speeds of at least 3 Mbps.4 What are the Types of Broadband Transmission Technologies? Broadband is deployed throughout communities as wired and wireless infrastructure that carries digital signal between end users and the content they want to access. Broadband infrastructure consists of the backbone, the middle mile, and the last mile. The backbone consists of very large capacity fiber-optic trunks that enable local and regional networks to connect with for long distance data transmission. The middle- mile links the backbone to the Internet Service Provider’s (ISP) core network or telecommunications exchange. The last-mile is the local infrastructure that brings the connection to residents’ homes and businesses. Robust local infrastructure results in faster, more reliable access to content. Conversely, local infrastructure that is aging and built on older technologies results in slower, less reliable, access to content.

Broadband includes several last-mile transmission technologies:

 Cable Modem services transmit data through the same coaxial cables that generate pictures and sound from a TV. Speeds commonly vary from 6 – 30 Mbps download and 1 – 3 Mbps upload on standard tiers, but can reach gigabit speeds. Cable networks are shared, meaning actual speeds vary due to congestion.  DSL (or digital subscriber line) transmits data faster over traditional copper telephone lines already installed to homes and businesses. Common DSL downstream speeds are .5 to 6 Mbps, though they can get up to 40 for people living very close the equipment that generates the signal.  Wireless Internet can be mobile or fixed. Fixed wireless broadband utilizes transmission towers that communicate between a base station tower and many subscribers (one-to-many). Fixed wireless services generally support between 1 and 10 Mbps of bandwidth. Mobile broadband wireless, on the other hand, is a type of high-speed Internet access that lets you use 4G LTE mobile broadband data-only devices (i.e., tablets and notebooks) on a carrier’s LTE cellular network.  Satellite broadband, another form of wireless broadband, is useful for serving remote or sparsely populated areas. Downstream and upstream speeds for satellite broadband depend on several

3 http://www.arkleg.state.ar.us/assembly/2009/R/Acts/Act947.pdf 4 https://apps.fcc.gov/edocs_public/attachmatch/FCC-15-10A1.pdf

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factors, including the provider and service package purchased, the consumer's line of sight to the orbiting satellite, and the weather. Speeds may be slower than DSL and cable modem.  Fiber-optic technology converts broadband data signals to light and sends the light through transparent glass fibers about the diameter of a human hair. Fiber transmits data at speeds far exceeding current DSL or cable modem speeds, typically by tens or even hundreds of Mbps. Fiber- optic-networks are reliable, resilient, and use technology that offers nearly unlimited expansion. Actual speeds are always dependent on the services provisioned by the service provider who operates the system however, speeds generally range from 10Mbps to 100Gbps. Variations of the technology run the fiber all the way to the customer’s home or business, to the curb outside, or to a location somewhere between the provider’s facilities and the customer. What are the Advantages of Fiber over Copper/Coaxial Technologies? The majority of America’s broadband infrastructure still utilizes copper-based media (twisted-pair copper telephone and coaxial cable television lines) to transmit information from a user to the internet. Most of this infrastructure was installed years ago but in many areas of the country, it is still being installed in new communities today. As time has progressed, broadband providers have continued to upgrade equipment in their networks to make these lines faster and more reliable, however; several fundamental issues exist with underlying copper infrastructure:

1. Broadband signals degrade significantly as distances increase in copper-based networks. 2. Broadband signals are susceptible to electrical interference and signal degradation in copper-based networks, particularly as they depreciate. 3. Copper-based networks delivering broadband services generally utilize shared bandwidth among pools of users which results in an uneven distribution of speed to these users. Even with technological advances, copper cables will not be able to live up to customer requirements. This is why communications carriers and cable operators are deploying fiber to replace large portions of their copper networks, and on an increasingly larger scale. Fiber optics is one of the few technologies that can legitimately be referred to as “future-proof,” meaning that they will be able to provide customers with larger, better and faster service offerings as demand grows. Fiber networks have significant bandwidth advantages: a single copper pair conductor can carry six phone calls whereas a single fiber pair can carry more than a million phone calls simultaneously over a much longer distance. Thus, fiber optic transmission speeds exceed DSL or cable modem speeds by a significant order of magnitude; residential fiber networks typically offer speeds of 50 to 100 Mbps, but fiber speeds of up to 1 terabit per second (Tbps) have been demonstrated. For example, Google has recently rolled out its Fiber program in select US cities (e.g. Atlanta, Austin and Kansas City); Google’s fiber network boasts symmetrical speeds of up to 1Gbps, which is roughly 30 times faster than the national broadband speed average of 33.2Mbps, according to networks benchmarking company Ookla.5

Fiber optic technology has been used for decades to transmit large amounts of data internationally; the first submarine fiber optic cable, known as TAT-8, was laid down in 1988. Moreover, internet backbone companies such as Cogent Communications and Level 3 have relied on fiber optic technology for years to transmit data quickly and efficiently between major ISPs and content servers. However, fiber optics has

5 http://www.ookla.com/

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only recently been rolled out to the residential internet market, with Verizon launching its well-known FIOS service in 2005. Over the next five years, traditional telecommunications providers will continue to deploy and expand fiber networks for residential customers, moving toward bundled fiber broadband services that include bundled voice, internet, and video services.6 Is Fiber Better than Wireless Technologies? Fiber and wireless are frequently posited as competing technologies, a common—but inaccurate— perception. Neither can replace nor compete with the other; rather, these technologies inherently enhance and complement each other. Wireless delivers mobility and fiber delivers capacity and speed. In addition, wireless needs fiber: for purposes of reliability and speed, a wireless network requires a robust fiber optic core backbone that connects it to core resources, to the Internet, and to other public networks. High wireless performance depends on backhaul over a core fiber network and, correspondingly, a wireless network will deliver poor performance if backhaul is inadequate, regardless of the quality of the wireless network itself.

Each network technology has its own distinct advantages and challenges, but fiber is a more flexible, future- proof, and capable technology—and a far less risky investment.

Wireless networks provide mobility and flexibility. Wireless holds a benefit with respect to speed to deployment and flexibility. However, there are significant challenges in providing effective wireless service. Design limitations such as power levels, spectrum availability, and required data capacity require that individual antennas or base stations serve limited areas, such as one mile or less. The challenge of deploying and managing wireless is also complicated if unlicensed frequencies are used for such technologies as WiFi. Further, when a wireless provider needs to migrate to a more advanced technology platform, it may need to re-engineer and redesign its entire system.

Fiber networks hold the advantage in capacity, robustness, and security. Fiber provides almost unlimited capacity. Each single fiber optic strand is theoretically able to duplicate the entire electromagnetic spectrum available to all wireless users. In a practical sense, the capacity limit is imposed by the capability of the electronics connected to the fiber. Further, capacity is constantly increasing as technology improves. Fiber has a life of decades, assuming adequate maintenance, and it can cost-effectively and simply be scaled to dramatically higher speeds as new electronics become available. Who are the Key Policy Players? At the federal level, the Federal Communications Commission (FCC) is the agency charged with regulating inter-state and international communications by radio, television, wire, satellite and cable in all 50 states, the District of Columbia and U.S. territories. The independent U.S. government agency is directed by five commissioners, appointed by the President and confirmed by Congress. The Commission is the United States' primary authority for communications law, regulation and technological innovation.

According to the Telecommunications Act of 1996, section 706, the FCC has the authorization to determine whether broadband internet is being “deployed to all Americans in a reasonable and timely fashion.”7 Through this act, the FCC has the ability to define advanced telecommunications capability benchmarks, as

6 Internet Service Providers in the US March 2015. Ibis World. Ibrahim Yucel. 7 http://www.cybertelecom.org/broadband/706.htm

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well as to propose and enforce action to accelerate broadband deployment by removing barriers to infrastructure investment and by promoting competition in the telecommunications market.

In addition to the FCC, the National Telecommunications and Information Administration (NTIA), located within the US Department of Commerce, is responsible for advising the President on telecommunications and information policy issues. The NTIA’s programs and policymaking is focused largely on expanding broadband internet access and adoption, expanding the use of spectrum by all users, and ensuring that the Internet remains an engine for continued innovation and economic growth. The NTIA also maintains a national broadband map, which updates data on availability, speed and location of broadband services twice a year with the intent to assist state broadband initiatives in planning.8

Locally, in 2005, Arkansas lawmakers, state agency leaders, and others created the Arkansas Broadband Initiative to formalize discussions on connectivity and advocate for high-speed internet access for every home and business. The Connect Arkansas Broadband Act (Act 604) was signed into law by Arkansas Governor Mike Beebe on March 28, 2007, with the goal of improving personal lives and creating economic opportunity for Arkansans.9 The Act created Connect Arkansas, a project of the Arkansas Capital Corporation Group (ACCG), a private, nonprofit corporation dedicated to increasing high-speed Internet subscription and improving and sustaining Internet adoption throughout Arkansas.

Act 604 of 2007 states that Connect Arkansas’s mission is to “prepare the people and businesses of Arkansas to secure the economic, educational, health, social, and other benefits available via broadband use.”10 Connect Arkansas was supported by two federal American Recovery and Reinvestment Act (ARRA) grants, several grants from other sources and most recently two state grants through the Arkansas Science and Technology Authority and the Arkansas Economic Development Commission. Connect Arkansas did not receive funding in the 2015 legislative session and will be closing operations effective June 30, 2015.11

In 2013, Arkansas Act 1168 designated the director of the Arkansas Department of Information Systems (DIS) to serve as the state broadband manager to promote, develop, and coordinate broadband expansion and appropriate broadband infrastructure for all areas of the state.12 DIS employs information technology professionals specializing in data center and hosting; management of the state network; cyber security, continuity of operations and disaster recovery, desktop support, cloud services, database administration, project management, applications management and development and other core facets of technology.13 The Future of Broadband According to the United States Telecom Association, internet service providers (ISPs) have already invested more than $1.3 trillion in national internet and network infrastructure since 1996, with an estimated $75.0 billion in capital investments in 2013 alone (latest data available).14 Total monthly internet traffic volume, which has more than quadrupled over the past five years, is expected to continue growing unabated in the

8 http://www.broadbandmap.gov/ 9 ftp://www.arkleg.state.ar.us/acts/2007/public/ACT604.pdf 10 Ibid. 11 http://www.arkleg.state.ar.us/assembly/2013/2013R/Acts/Act1168.pdf 12 http://www.arkleg.state.ar.us/assembly/2013/2013R/Acts/Act1168.pdf 13 http://www.arkansas.gov/dis/newsroom/index.php?do:newsDetail=1&news_id=154 14 http://www.ustelecom.org/blog/broadband-investment-surged-2013

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coming years, rising at an annualized 18.2% over the five years to 2020.15 Strong and sustained demand for faster demand for faster and more reliable internet connectivity will require (ISPs) to continually invest in new internet infrastructure to take advantage of this trend and to fulfill the ever-rising needs of their consumers.

Cisco is known in the industry as providing objective academic quality analyses on topics related to the Internet through its “white papers”. The 2015 Cisco White Paper “The Zettabyte Era – Trends and Analysis” provides very useful high level projections regarding internet traffic as follows16:

 Global IP traffic has increased fivefold over the past five years, and will increase threefold over the next five years. Overall, IP traffic will grow at a compound annual growth rate (CAGR) of 23 percent from 2014 to 2019.

 Two-thirds of all IP traffic will originate with non-PC devices by 2019. In 2014, only 40 percent of total IP traffic originated with non-PC devices, but by 2019 the non-PC share of total IP traffic will grow to 67 percent. PC-originated traffic will grow at a CAGR of 9 percent, and TVs, tablets, smartphones, and machine-to-machine (M2M) modules will have traffic growth rates of 17 percent, 65 percent, 62 percent, and 71 percent respectively.

 Traffic from wireless and mobile devices will exceed traffic from wired devices by 2016. By 2016, wired devices will account for 47 percent of IP traffic, and Wi-Fi and mobile devices will account for 53 percent of IP traffic. In 2014, wired devices accounted for the majority of IP traffic, at 54 percent.

 Global Internet traffic in 2019 will be equivalent to 66 times the volume of the entire global Internet in 2005. Globally, Internet traffic will reach 37 gigabytes (GB) per capita by 2019, up from 15.5 GB per capita in 2014.

 The number of devices connected to IP networks will be more than three times the global population by 2019. There will be more than three networked devices per capita by 2019, up from nearly two networked devices per capita in 2014. Accelerated in part by the increase in devices and the capabilities of those devices, IP traffic per capita will reach 22 GB per capita by 2019, up from 8 GB per capita in 2014.

 Broadband speeds will more than double by 2019. By 2019, global fixed broadband speeds will reach 42.5 Mbps, up from 20.3 Mbps in 2014. III. BROADBAND ACCESS ASSESSMENT

As required by section 706 of the Telecommunications Act of 1996, the FCC produces annual progress reports to evaluate “whether advanced telecommunications capability is being deployed to all Americans in a reasonable and timely fashion.”17The FCC’s 2015 Broadband Progress Report found that 55 million

15 Internet Service Providers in the US March 2015. Ibis World. 16 http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index- vni/VNI_Hyperconnectivity_WP.html 17 https://www.fcc.gov/document/fcc-finds-us-broadband-deployment-not-keeping-pace-0

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Americans – 17 percent of the population – lack access to broadband, as defined as speeds of at least 25 Mbps download and 3 Mbps upload service.18 Key findings include the following:

 17 percent of all Americans (55 million people) lack access to 25 Mbps/3 Mbps service.  53 percent of rural Americans (22 million people) lack access to 25 Mbps/3 Mbps. o By contrast, only 8 percent of urban Americans lack access to 25 Mbps/3 Mbps broadband. o Rural America continues to be underserved at all speeds: 20 percent lack access even to service at 4 Mbps/1 Mbps, down only 1 percent from 2011, and 31 percent lack access to 10 Mbps/1 Mbps, down only 4 percent from 2011.  Overall, the gap in availability of broadband at 25/3 closed by only 3 percentage points last year, from 20% lacking access in 2012 to 17% in 2013  Overall, the broadband availability gap closed by only 3 percent last year in 2014.  Americans living in rural and urban areas adopt broadband at similar rates where 25 Mbps/ 3 Mbps service is available, 28 percent in rural areas and 30 percent in urban areas.  Approximately 35 percent of schools lack access to fiber, and thus likely lack access to broadband at the Commission’s shorter term benchmark (adopted in its July 2014 E-rate Modernization Order) of 100 Mbps per 1,000 users, and even fewer have access at the long term goal of 1 Gbps per 1,000 users. Mapping Broadband Availability In 2009, in the Recovery Act, Congress directed NTIA through the State Broadband Initiative program to collect more robust data about broadband deployment and create a National Broadband Map, “a comprehensive nationwide inventory map of existing broadband service capability and availability.”19 NTIA awarded approximately $167 million to 56 grantees, one to each of the 50 states, 5 territories, and the District of Columbia, or their designees, fund five years of state-led efforts to semiannually collect data on the availability, speed, and location of broadband services, as well as the broadband services used by community anchor institutions, such as schools, libraries and hospitals. 20

The National Broadband Map has become a vital tool for consumers, businesses, policy makers and researchers by providing an easy to use and searchable way to find out who is offering broadband, what types of broadband they are offering and where are they providing it. The National Broadband Map’s final update was released in March 2015 with data current as of June 30, 2014.21

18https://www.fcc.gov/reports/2015-broadband-progress-report 19 American Recovery and Reinvestment Act of 2009, § 6001(l), Pub. L. No. 111-5, 123 Stat. 115 (2009) (Recovery Act). 20 http://www2.ntia.doc.gov/sbdd 21 http://www.broadbandmap.gov/blog/3328/national-broadband-map-has-helped-chart-broadband-evolution/

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Connect Arkansas Connect Arkansas was responsible for broadband data collection, integration, and validation in Arkansas under the State Broadband Initiative. In its 2015 Broadband Progress Report, the FCC reported that 41% of Arkansas’ population had access to fixed broadband services of at least 25 Mbps download and 3 Mbps upload, compared to 17% of the total U.S. population. However, the same data indicated that 0% of Garland County’s population had access to fixed broadband services of at least 25 Mbps download and 3 Mbps upload.22

Connect Arkansas’ tenth and final data collection under the NTIA’s State Broadband Initiative, submitted in fall 2014, featured data from 77 of the 84 identified Arkansas ISPs. The submission also included Community Anchor data including law enforcement, fire departments, and hospitals to determine connectivity. Wireline Availability – Percent of Population Served While 86.9% of Arkansas residents have access to basic wired broadband download speeds of 3 Mbps and 768 Kbps (the speed tier at which NTIA collected data and was most closely aligned with the FCC’s 2010 goal of 4 Mbps download and 1 Mbps upload), only 58.5% of Arkansas residents have access to broadband download speeds of 25 Mbps (2015 goal).

22 https://apps.fcc.gov/edocs_public/attachmatch/DOC-331734A1.pdf

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Arkansas Speed Wireline Wireline Download Upload 768 Kbps N/A 88.4% 1.5 Mbps N/A 67.4% 3 Mbps 89.1% 48.9% 6 Mbps 85.7% 39.6% 10 Mbps 81.4% 39.0% 25 Mbps 58.5% 3.9% 50 Mbps 56.9% 3.7% 100 Mbps 36.6% 3.7% 1 Gbps 2.3% 2.3%

Wireless Availability – Percent of Population Served 99.7% Arkansas residents have access to basic wireless broadband speeds of 3 Mbps download and 768 Kbps upload. However, 0% have access to wireless speeds of 25 Mbps download or upload.

Arkansas Speed Wireless Wireless Download Upload 768 Kbps N/A 99.7% 1.5 Mbps N/A 99.7% 3 Mbps 99.7% 98.0% 6 Mbps 98.0% 33.5% 10 Mbps 98.0% 0.0% 25 Mbps 0.0% 0.0% 50 Mbps 0.0% 0.0% 100 Mbps 0.0% 0.0% 1 Gbps 0.0% 0.0%

Technology Platforms Available – Percent of Population Served As of the 2014 data submission, nearly 7% of Arkansas residents had access to fiber broadband. In comparison, 25.4% of total U.S. households have access to fiber broadband.

Technology Arkansas

DSL 87.7% Fiber 6.6% Cable 74.8% Wireless 99.8% Other 0.0%

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Competition – Percent of Population Served More than two-thirds of Arkansas residents have at least two wired ISP options available to them.

Arkansas

ISP Options Wireline Wireless

0 4.9% 0.0% 1 20.9% 0.1% 2 68.3% 14.0% 3 5.8% 26.2% 4 0.1% 19.7% 5 0.0% 34.6% 6 0.0% 4.0% 7 0.0% 1.0% 8 0.0% 0.4%

Garland County and Hot Springs Broadband Availability The latest available data from Connect Arkansas’ 2014 data submission is provided below. More information, including provider-specific data, is available in Appendix B. Wireline Availability – Percent of Population Served 88.4% of Garland County’s population is served by wireline technology at a basic broadband speed of 3 Mbps download and 768 Kbps upload, compared to 100% of Hot Springs’ population.

Garland County Hot Springs Speed Wireline Wireline Wireline Wireline Download Upload Download Upload 768 Kbps N/A 88.4% N/A 100.0% 1.5 Mbps N/A 7.9% N/A 0.0% 3 Mbps 89.5% 0.9% 100.0% 0.0% 6 Mbps 88.6% 0.9% 100.0% 0.0% 10 Mbps 87.5% 0.0% 100.0% 0.0% 25 Mbps 0.9% 0.0% 0.0% 0.0% 50 Mbps 0.0% 0.0% 0.0% 0.0% 100 Mbps 0.0% 0.0% 0.0% 0.0% 1 Gbps 0.0% 0.0% 0.0% 0.0%

Wireless Availability – Percent of Population Served 100.0% of both the populations of Garland County and Hot Springs are served by wireless technology at a basic broadband speed of 3 Mbps download and 768 Kbps upload.

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Garland County Hot Springs Speed Wireless Wireless Wireless Wireless Download Upload Download Upload 768 Kbps N/A 100.0% N/A 100.0% 1.5 Mbps N/A 100.0% N/A 100.0% 3 Mbps 100.0% 98.6% 100.0% 100.0% 6 Mbps 98.6% 87.4% 100.0% 99.8% 10 Mbps 98.6% 0.0% 100.0% 0.0% 25 Mbps 0.0% 0.0% 0.0% 0.0% 50 Mbps 0.0% 0.0% 0.0% 0.0% 100 Mbps 0.0% 0.0% 0.0% 0.0% 1 Gbps 0.0% 0.0% 0.0% 0.0%

Technology Platforms Available – Percent of Population Served

Technology Garland County Hot Springs DSL 86.9% 99.9% Fiber 0.0% 0.0% Cable 86.2% 100.0% Wireless 100.0% 100.0% Other 0.0% 0.0%

Competition – Percent of Population Served

Garland County Hot Springs

ISP Options Wireline Wireless Wireline Wireless

0 7.1% 0.0% 0.0% 0.0% 1 9.1% 0.1% 0.1% 0.0% 2 83.8% 1.0% 99.9% 0.0% 3 0.0% 1.5% 0.0% 0.0% 4 0.0% 5.0% 0.0% 0.1% 5 0.0% 92.2% 0.0% 99.9% 6 0.0% 0.3% 0.0% 0.0%

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IV. BROADBAND DEMAND ASSESSMENT

Measuring public opinion of and needs for broadband provides insight into the types of action needed to improve access and adoption in the community. Surveying is an effective tool for measuring perception, current use, and demand for broadband. TPMA conducted an online survey of residents and businesses regarding broadband uses and needs. Please see Appendix C and D for tables which depict survey results for each question. 149 residents and 113 businesses took the time to respond to the survey and these responses are beneficial to broadband planning for the Hot Springs community.

As you review the results, please keep in mind that survey participants were self-selected, and the sample is not representative of the entire community. Residential Broadband Survey Highlights Among the 149 residential respondents, the vast majority subscribed to internet service at home (89.9%). Among those who subscribed to internet service at home, 45.6% reported subscribing to cable, while 21.4% indicated a home DSL connection. The average download speed reported was 16.3 Mbps and the average upload speed reported was 6.4 Mbps. One-third of respondents (33.6%) reported that children under the age of 18 lived in their home, and the ages of respondents were fairly evenly distributed; 51.1% were between the ages of 18 and 44, and 47.7 were 45 or older (1.3% preferred not to answer). Appendix C features tables which depict survey results for each question. Additional highlights include:

 42.7% of respondents claim to occasionally experience difficulty completing school or work assignments due to internet accessibility, and 24.3% of respondents report that it occurs “often.”  Nearly two-thirds of respondents (63.5%) claim that the actual broadband speeds that their home receives is slower than what is advertised by their ISP.  Two-thirds of respondents (65.6%) report that they are unsatisfied with their current internet service provider, including 17.7% who reported being “very unsatisfied.” Conversely, only 3.1% of respondents reported being “very satisfied” with their service.  86.5% of respondents reported being dissatisfied with competition, or the number of service providers, including 61.1% being “very dissatisfied.”  97.0% of respondents reported that would be likely to subscribe to faster broadband speeds if they were available, including 39.8% who reported that they would “definitely” subscribe to faster speeds if they were available.  22.9% of respondents reported that the availability of broadband impacted their decision to rent/purchase their current home in Hot Springs.  53.7% of respondents reported that they would be willing to pay more for a home that had access to high-speed a high-speed broadband connection (i.e. a fiber to the home connection).  90.6% of respondents reported that they believed Hot Springs would benefit economically from increased broadband access and speeds.  20% of respondents reported that the lack of adequate Wi-Fi downtown served as a deterrent for visiting the area.

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 56.3% of respondents reported that they did not believe that businesses in downtown Hot Springs were successfully leveraging the internet and related technologies to boost business.  Nearly one-third of respondents (31.3%) were aware of public resources for digital literacy training in Hot Springs and 38.5% of respondents would be interested in attending free digital literacy training classes if they were offered.

Business Broadband Survey Highlights Out of 113 business respondents, nearly one-half (45.0%) had been in business for 25 years or more, nearly one-third (32.2%) identified as belonging to the professional services sector (legal, engineering, financial, etc.), and most respondents (51.7%) were small businesses with 10 or fewer employees, although 10.0% of respondents reported employing over 100 employees. 40.5% of respondents reported that they connect to the internet via a cable modem, 16.2% connect via DSL, and 9.5% connect via a fiber connection. Among respondents, 79.7% of respondents reported that their internet service is essential to their business and 24.3% indicated that they would “definitely” sign up for faster speeds, if it were available. Appendix D features tables which depict survey results for each question. Additional highlights include

 83.8% of respondents have a website, and 52.7% are used for e-commerce.  48.5% of respondents indicated that the actual broadband speeds that their business received were slower than advertised.  25.7% of respondents report that their speeds are fairly slow and that they would like to be connected at higher speeds.  30.0% of respondents report that their download speed was either fairly or very slow and would like to be connected at higher speeds, and 41.4% of respondents reported the same for their upload speeds.  The vast majority of respondents reported that their business internet connection was reliable, with one-third (33.8%) reporting that their service was “very reliable.”  45.1% of respondents reported that slow internet speeds “occasionally” make it difficult to do business or work and 40.8% reported that they had “occasionally” experienced issues with their internet service provider that had a negative impact on their business, although 40.8% also said that this “very rarely” occurred.  20.3% of respondents reported that their need for additional bandwidth could motivate them to relocate their business to a location that had higher-speed broadband available.  24.3% of respondents report that they would “definitely” sign up for faster speeds, if it were available.  Nearly one-third of respondents (32.3%) report experiencing problems finding new employees with adequate knowledge to use a computer and access the internet for business purposes.  62.1% of respondents offer training to employees to learn new software and/or computer programs.

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V. BROADBAND DRIVEN ECONOMIC DEVELOPMENT

High-speed broadband service is a key economic development tool to attract, grow, and retain businesses in the Hot Springs community. Broadband for Economic Development According to the U.S. Economic Development Administration, economic development

“Creates the conditions for economic growth and improved quality of life by expanding the capacity of individuals, firms, and communities to maximize the use of their talents and skills to support innovation, lower transaction costs, and responsibly produce and trade valuable goods and services. Economic development requires effective, collaborative institutions focused on advancing mutual gain for the public and the private sector.”23

Although the availability of advanced broadband networks is only one among many tools for economic development and only one of several factors an entity takes into account in deciding whether to move to or remain in a particular community, a growing body of research indicates that broadband availability and affordability is now a significant factor for business, putting it on par with transportation infrastructure and a skilled local workforce.24 For example, according to a 2011 survey of building owners and property managers, broadband access is one of the most important decision factors for commercial real estate siting—after price, parking, and location.25 Similarly, a national survey found that 77 percent of economic development professionals believe that to attract a new business, a community must have broadband of at least 100 Mbps.26

Though broadband is a central part of any package to attract or retain businesses, it does not in and of itself guarantee success in economic development – nor did rail or highway access in previous centuries. Rather, communities where there is an absence of sufficient broadband service will be at a significant disadvantage for attracting and retaining business and will likely have difficulty encouraging the development of new local businesses. The Economic Case for Faster Speeds Given the relatively recent emergence of fiber networks, there is not yet a large enough database to support statistically rigorous statements about the relationship between high-bandwidth broadband connectivity and economic development.27 However, Infrastructure investment, job creation, entrepreneurship, and companies relocating or expanding to cities all link investments in broadband networks to improved economic performance.28

23 http://www.eda.gov/ 24 http://bbpmag.com/2012mags/march-april/BBC_Mar12_ProvingLink.pdf ; also see: http://bbcmag.epubxp.com/i/81102-aug-sep-2012/16 25 http://business.comcast.com/docs/default-source/press-releases/propmgr- 2011_10_26_comcast_survey_news_and_links.pdf?sfvrsn=0 26 http://cjspeaks.com/wp/wp-content/uploads/2014/04/IEDC-2014-report.pdf 27 http://www.bbpmag.com/MuniPortal/EditorsChoice/1114editorschoice.php 28 http://www.nytimes.com/2014/03/13/business/smallbusiness/supporting-start-ups-with-advice-connections-and- caffeine.html?_r=0 ; http://archive.wbir.com/rss/article/197475/2/Chattanooga-fiber-attracts-Knoxville-business

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A series of studies conducted at the Chalmers University of Technology in Gothenburg, Sweden, specifically addressed the effects of broadband speed. In their first report, published in 2011, the researchers concluded that increases in broadband speeds contributed significantly to economic growth.29 In a report published in 2013, the same researchers concluded that, in developed countries, the threshold level for broadband to have any impact on household income was 2 Mbps; gaining 4 Mbps of broadband increased household income by $2,100 per year.30 Given that fiber networks are capable of nearly unlimited speed, it appears that their potential economic impact is higher than that for lower-capacity broadband.

A recent study commissioned by the Fiber to the Home Council Americas compared economic activity in 14 metropolitan statistical areas (MSAs) in which gigabit-speed connectivity was widely available (to more to than 50 percent of the households) with economic activity in 41 similarly sized MSAs in the same states in which gigabit speeds were not available. According to the study’s investigators, “our model suggests that for the MSAs with widely available gigabit services, the per capita GDP is approximately 1.1 percent higher than in MSAs with little or no availability of gigabit services. These results suggest that the 14 gigabit broadband communities in our study enjoyed approximately $1.4 billion in additional GDP when gigabit broadband became widely available.”31 Although this study focuses on “early evidence” and is far from conclusive, it is consistent with the field experience of many communities.

In addition, a rapidly growing body of evidence confirms that, at least in some localities, advanced broadband networks can indeed spur economic development and create jobs. Below are a few of the many projects across the country that are using advanced broadband capabilities to support economic development. The common thread is that economic development officials are working closely with existing and potential employers to identify, understand and meet their needs for advanced communications capabilities.

Cedar Falls, IA

In the 1990s, Cedar Falls Utilities built a citywide municipal hybrid fiber-coaxial network and provided fiber connections to commercial and industrial customers in both the city and the industrial park.32 Over the years, Cedar Falls watched businesses from neighboring towns relocate to the area, in part because of the need for more bandwidth and greater Internet capabilities.33 Jim Krieg, general manager of Cedar Falls Utilities, noted the growth fiber optics had generated: “Twenty years ago, [Cedar Falls] had 27 businesses and $5 million in taxable valuation; today, there are 160 businesses and $270 million in valuation.”34

Mesa, AR

In the early 2000s, Mesa started placing conduit in its rights-of-way during capital construction projects and any other time a road was open.35 The city built a critical mass of conduit and fiber over a decade and

29 http://www.ericsson.com/news/1550083 30 http://www.ericsson.com/res/thecompany/docs/corporate-responsibility/2013/impact-of-broadband-speed-on- household-income.pdf 31 http://www.analysisgroup.com/uploadedfiles/content/insights/publishing/gigabit_broadband_sosa.pdf 32 http://muninetworks.org/sites/www.muninetworks.org/files/kelley-cfu.pdf 33 https://net.educause.edu/ir/library/pdf/EPO0801.pdf 34 http://wcfcourier.com/news/local/govt-and-politics/branstad-in-cedar-falls-to-discuss- broadband/article_e97a3e2b-4892-52d3-b60f-43166108e500.html 35 http://www.ctcnet.us/wp-content/uploads/2014/01/GigabitCommunities.pdf

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a half, and it partners actively with private entities seeking access to conduit and fiber. Apple located a silicon research lab in Mesa, and the city credits the direct fiber connection to that facility as a significant part of the inducement for Apple and other entities to locate in Mesa.36 Pulaski, TN Pulaski Electric System’s PES Energize, the fiber-to-the-home provider, started serving the city of Pulaski in 2007. Since then, local economic development leadership has begun marketing PES’ services to nearby Huntsville, AL, which is home to a large number of defense and space industries. Before PES built its network, the community had never attempted to approach the defense or aerospace companies because it had little to offer that met their special needs. The FTTH network has allowed several existing industries to receive superior service at much lower prices. The system has become a focus of community pride and an example of the community’s willingness to invest in the future.37 Auburn, IN Auburn went with fiber in 2005 when Cooper Industries, a Fortune 200 company whose global data operations were located in Auburn, Ind., was at a crossroads – it had to either expand its Auburn facility or relocate. The company’s most critical requirement was for fast, resilient and reliable broadband. Auburn Essential Services, a municipal broadband provider, worked with Cooper to craft a business class broadband service and thereby preserve $7 million in annual payroll for the community.38 In addition, the city has retained a number of Internet-dependent, small but growing businesses. The Quality of Life Case for Faster Speeds In general, access to utilities makes private property more valuable, and fiber-to-the-home is among the utilities that owners and renters particularly value. Fiber connections make single family homes easier to sell and multiple dwelling units easier to rent – in fact, according to a recent survey by RVA LLC, buyers of houses and condominiums are willing to pay a 3 percent premium for a fiber-connected home, and renters are willing to pay an 8 percent premium.39

In fact, a 2015 report written by researchers from the University of Colorado at Boulder and Carnegie Mellon University found that single-family homes in areas where gigabit fiber services are available have a median value that is 3.1% higher than homes without fiber.40 When evaluated at the sample median house price of $175,000, the research suggests that access to fiber may be associated with about a $5,437 increase in the typical home’s value.41 Even when gigabit service isn’t available, the study found that home values get a lift of 1.8% when a local network operator has deployed fiber infrastructure capable of supporting speeds of at least 100 Mbps.42

36 http://muninetworks.org/content/mesas-focus-dig-once-and-fiber-leases-pays-community-broadband-bits- podcast-139 37 http://www.bbpmag.com/snapshot/snap0109.php 38 http://www.bbcmag.com/Primers/BBC_Aug13_Primer.pdf 39 Ibid. 40 http://www.lightwaveonline.com/content/dam/lw/documents/FTTH_Report_06_26_2015.pdf 41 Ibid. P. 3 42 Ibid. P. 18

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In addition, according to RVA Market Research & Consulting, residents with fiber-to-the-home work an average of 1.3 extra days at home each month and about 14% have home-based businesses resulting in over $10,000 in extra income for the household.43 In fact, RVA found that high speed Internet capacity was often one of the highest or the highest consideration when residents evaluated neighborhoods, households and multi-dwelling units (MDUs).44

43 http://www.bbpmag.com/Features/1113feature-FTTHExpands.php 44 http://www.gig-u.org/cms/assets/uploads/2012/12/Val-NexGen_design_7.9_v2.pdf

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VI. COMMUNITY-LED BROADBAND

When the Telecommunications Act of 1996 was enacted, policymakers anticipated that most of the United States would shortly have multiple facilities-based providers competing to build better networks, deliver better services, and reduce prices.45 Nearly 20 years later, it is clear that robust, facilities-based wireline competition did not emerge ubiquitously – in part because constructing large-scale networks is such a formidable economic challenge, particularly for a competitive provider that does not have the benefits of incumbency.

Fortunately, local communities have multiple options to increase the availability and robustness of their broadband network. They can work with willing incumbents, enter into public-private partnerships with new entrants, or establish advanced communications networks of their own (i.e. municipal broadband), and many other innovative approaches exist in between. The term “community-led broadband” is often used to signify that a community is taking an active role in accelerating the deployment of next generation networks, and consciously making choices about how those networks can be serve the public good. Developing a Framework for Community Change Individual communities have unique needs and challenges to address, yet there are patterns common to how sustainable, systemic change happens, often following a flexible process supported by formal and informal leaders. Systemic change such as broadband development typically begins with building awareness of the issue, proceeds to methods of gathering community support, and follows through with actions taken to create positive, enduring transformation. In the summer of 2015, the University Wisconsin- Extension Broadband & E-Commerce Education Center, which assists community stakeholders in implementing strategies to attract broadband investments, released a strategy guide for communities to encourage adoption and utilization of broadband technologies, as well as improve internet access for community residents.46

The Wisconsin strategy guide emphasized the use of John P. Kotter’s eight-step change framework, which he outlined in the 1996 book, Leading Change.47 By analyzing change failures in companies and organizations over 15 years, Kotter identified patterns of errors that create barriers, and crafted a roadmap for transformation to overcome these barriers. Kotter expands on these ideas in his 2014 book, Accelerate, in which he describes the advantages of a more fluid strategy network; this model applies more readily to community change.48

Communities must factor in that the parties who collaborate for larger, community change are not bound by the rules and structures that one finds in organizations. Leadership is often informal; authority comes in the form of knowledge sharing and relationship, which can be accomplished via community brain trusts.

45 The Telecommunications Act of 1996 was the first significant overhaul of United States telecommunications law in more than sixty years, amending the Communications Act of 1934. According to the FCC, the goal of the law was to "let anyone enter any communications business—to let any communications business compete in any market against any other." https://transition.fcc.gov/telecom.html 46 http://broadband.uwex.edu/wp-content/uploads/2015/06/Broadband-Policy-006.030.2015.3.pdf 47 John B. Kotter, Leading Change, 1996. 48 John B. Kotter, Accelerate, 2014

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The process for creating significant change is described in eight stages, which starts at building awareness and concludes with descriptions of how communities make sustained commitments.

Kotter’s eight-step change framework provides an ideal outline for organizing Hot Springs’ efforts. 1. Creating a Sense of Urgency Low levels of awareness and lack of a sense of 1. Establish a sense of urgency urgency serve as hindrances to increasing broadband adoption and access. Local leaders, households, and businesses may understate or be 2. Create a guiding coalition unaware of the numerous benefits from improved internet service as well as the active role they can play in improving internet service in 3. Form a strategic vision & initiatives their area. Actions addressing urgency may vary in form, detail, and formality; through various means, emphasizing the urgency of broadband 4. Communicate the vision development is an important step which functions as a catalyst for further action that can yield more tangible results. 5. Enable action and remove barriers

Recommendation: Hot Springs Broadband Resolution 6. Generate short term wins Local governments and other organizations have adopted resolutions supporting broadband development either internally or in support of 7. Sustain acceleration another organization. These resolutions usually do not carry much legal weight; instead, their role is to affirm desire for broadband development 8. Institute change and build momentum toward more substantial action. Forward-thinking communities that adopt broadband resolutions are taking the first steps in preparation for investment opportunities.

Resolution Examples:

 Marinette County, WI  City of Rushville, IN 2. Build a Guiding Coalition Bringing together a group of dedicated stakeholders is essential to the success of a community development initiative, including broadband development. Some local governments have taken on responsibility for action after they passed a supporting resolution. In some cases, the body passing a resolution has designated another existing organization to guide broadband efforts, such as an economic development association or committee, or an information technology office. Some have created a new entity to guide broadband development. Alternatively, organizations external to local governments have taken it upon themselves to advocate for broadband development.

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Recommendation: Hot Springs Broadband Leadership Council

Ensuring affordable and robust broadband availability is not explicitly written into anyone’s job description. However, many communities have been successful in advanced network deployment because local leaders took the initiative to step out of their traditional or expected duties to adopt the cause. Hot Springs is forming the Hot Springs Broadband Leadership Council specifically to guide community action toward broadband. This committee currently consist of local officials, stakeholders, and interested citizens and their emerging role is to advise local decision makers on Hot Springs broadband needs and opportunities to accelerate deployment and increase demand for broadband technologies. What’s my Role? Gig.U, a coalition of research university communities, recommends the following roles for community leaders:49

 The Information Role: What should city workers/administrators do? Coordinate between offices to centralize data, mapping, and information on current fiber assets; Research plans that similar cities have adopted and gather best practices; Start an educational campaign to engage the average citizen on the city's broadband strategy or plan; Work with the city council or governing body to identify and fix regulatory roadblocks or inefficiencies standing in the way of private build-out.

 The Engineering Role: What should city engineers do? Perform preparatory work on city utility poles for new telecommunications entrants; assist other city workers in performing a local mapping and fiber asset inventory; if applicable, work with the city council or governing body to implement an informed dig once strategy; if applicable, work with the city council or governing body to craft the technical aspects of a development agreement with a private partner.

 The Legal Role: What should a city council or governing authority do? Institute fiber friendly policies, such as dig once; Institute regulatory reforms to simplify permitting, pole attachments and environmental review processes for new telecommunications entrants; if working with a private partner, create a detailed development agreement to protect city interests and meet shared goals; If it seems advantageous for your city, pursue a regional strategy by engaging with the county or neighboring municipalities.

 The Community Role: What should local political groups, community members and nonprofits do? Create, publicize and provide broadband adoption and digital literacy resources for resident; assist in measuring and increasing neighborhood demand through multiple efforts including going door- to-door; build relationships among the diverse pool of stakeholders in the community that would contribute to and benefit from a high-speed connection: schools, universities, hospitals, businesses, etc. 3. Develop and Communicate a Strategic Vision With a leadership team in place, Hot Springs should develop a strategic vision to guide action toward broadband development. What does success look like in the community? How are people using broadband

49 http://www.gig-u.org/cms/assets/uploads/2015/07/Val-NexGen_design_7.9_v2.pdf

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to improve the quality of their lives? What is the desired future for access for residents? Other communities have been using planning processes to formulate this vision of success, either as a topically focused process or part of a broader planning process.

Recommendation: Broadband-Inclusive Comprehensive Planning

Hot Springs can reinforce broadband development by including broadband in its comprehensive planning efforts. Arkansas Code § 14-56-403 states that municipal plans should be prepared in “order to promote, in accordance with present and future needs, the safety, morals, order, convenience, prosperity, and general welfare of the citizens.”50 Arkansas comprehensive plans may provide for:

1. Efficiency and economy in the process of development; 2. The appropriate and best use of land; 3. Convenience of traffic and circulation of people and goods; 4. Safety from fire and other dangers; 5. Adequate light and air in the use and occupancy of buildings; 6. Healthful and convenient distribution of population; 7. Good civic design and arrangement; 8. Adequate public utilities and facilities; and 9. Wise and efficient expenditure of funds. Change is the only overarching constant in the telecommunications world and community leaders need to understand their local ecosystem in order to make key decisions that influence the direction of their community. However, references to broadband in comprehensive plans are often broad in nature, describing elements such as the state of utilities infrastructure in the area, or goals for broadband availability or access. Implementation of plans may include more specific policies and actions recommended to improve broadband deployment and adoption. 4. Enabling Action and Removing Barriers At first glance, community leaders may not recognize that current practices, policies and regulations are hindering the adoption of technology and the expansion of access to broadband. A review of current policies and practices can reveal unintended barriers and provide a chance to confirm that policies support current priorities. Chapter VII discusses opportunities that Hot Springs may have to leverage local resources to remove barriers to private investment.

Recommendation: Facilitate Asset Utilization and Improvement; Streamline and Publicize Local Processes; Make Useful Information Available to Service Providers 5. Generating Short Term Wins Awareness amplifies as more of the residents learn about and experience the advantages of community development. Short term wins assure people that their decisions and actions are benefiting the community. Small projects can test ideas and encourage more community involvement. Small, measureable, and

50 AR Code § 14-56-403 (2014)

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sustainable improvements build momentum for long term success, especially if they are celebrated and communicated.

Broadband adoption yields numerous benefits for households and businesses that could have significant economic and social impacts. Effective, community-wide utilization of broadband for the purpose of developing the community requires addressing the issues on more than one level. It is not a case of “build it and they will come.” Essentially, making broadband available does not assure that residents will make use of it or leverage its capabilities to derive great benefit. Development of human capital – educating your population on benefits and enabling them skills – is a necessary strategy for driving demand and empowering widespread adoption of advanced broadband. Strategies for addressing the digital divide are discussed in Chapter IX.

Recommendation: Identify Existing Resources and New Strategies to Drive Digital Inclusion 7 & 8. Sustaining Acceleration and Instituting Change In addition to the individual projects discussed previously, Hot Springs should consider taking a high level of commitment to instituting long term, sustained broadband development that enables the community to take action to ensure ongoing support and to create structures for maintaining broadband deployment. This section will focus specifically on Hot Springs’ strategy for facilitating broadband deployment.

Every network deployment involves a number of components – design, construction, operating, marketing, and financing, to name the major ones. And, while municipal efforts to date reflect elements unique to specific circumstances, all nonetheless face a fundamental question: what roles should a municipality play in the effort? While we see a spectrum of how municipalities approach the fundamental trade-off question, their “answers,” as described by Gig.U in its Next Generation Network Connectivity Handbook, typically fall into one of three basic categories51:

1. Primary: The city plays the primary role by using public facilities to invest in telecommunications as public infrastructure;

2. Partial: The city plays a partial role, but relies heavily on a private partner, particularly for operations, marketing, and financing; and

3. Facilitator: The city uses governmental and other levers to facilitate the ability by private sector partners to play all the roles.

51 http://www.gig-u.org/cms/assets/uploads/2012/12/Val-NexGen_design_7.9_v2.pdf

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Overview of Network Models52 Category Model Benefits to Community Risks to Community • Local control • Financial return 1. Build and run a • Universal coverage • Operational sustainability Primary public network. • Customer services and • Pushback from community accountability incumbents 2. Build and run a • Financial risks public network to • Local control • Operational sustainability Partial businesses or • Leaves the door open for • Pushback from community anchor future expansion. incumbents institutions.

3. Build and lease • Financial risks depending out public • Potential increased Partial on vendor interest and infrastructure to the competition. city investment private sector.

• Little public investment or risk. • Uneven coverage 4. Facilitate a public- • Shared risk and reward across • Lack of local control Facilitator private partnership. sectors and community • Partnership conflicts stakeholders. going forward

5. Adopt one, many, • Incremental investment can • Leaves options open for city or several be risk and unwise if it paves a unwilling to commit to public incremental path to nowhere – e.g.: a future Facilitator build-out or still seeking a approaches to private partner does not invest private partner gigabit fiber- and the city has no plans to act • Little public investment readiness. alone

Municipal Broadband Roadblocks As the Hot Springs community considers how to proceed, it needs to consider how state law may limit municipal involvement in expanding broadband service. Nineteen states have adopted laws constraining how municipalities may either operate their own networks or even partner with private entities in stimulating deployment. State laws inhibiting public networks vary in scope. Administrative hurdles are on the most widespread methods of restricting municipal broadband. These hurdles are typically designed to limit the ability of municipalities by adding superfluous paperwork and excessive administrative costs. Almost as prevalent as administrative hurdles are states that explicitly restrict the direct sale of broadband (through communities or public power utilities) to end users.

Specific laws that restrict the direct sale of broadband by a municipality include:

 Arkansas: Ark. Code § 23-17-409

52 Ibid.

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 Missouri: Missouri Revised Statutes § 392.410  Nebraska: Nebraska Revised Statute 86-575, Nebraska Revised Statute 86-594  Pennsylvania: 66 Pa. Cons. Stat. Ann. § 3014(h)  Texas: Texas Utilities Code, § 54.201  Washington: Washington Revised Code Annotated § 54.16.330

Arkansas state law would be categorized as a “no direct sale” law, and prohibits new municipal networks. In 2011, the 88th Arkansas General Assembly created HB 2033, now known as Act 1050, an update to the Telecommunications Regulatory Reform Act of 1997.53 Prior law had prohibited any government entity from offering, directly or indirectly, basic local exchange services (traditional telephone service). Act 1050 expanded the prohibition to data, broadband, video, and wireless. With the exception of those owning municipal electric utilities or cable television systems, Arkansas towns are prohibited from offering broadband services to nonpublic entities.

Fortunately, Arkansas communities can facilitate private investment by optimizing local processes at key touchpoints that impact deployment time and costs.

Recommendation: Take Responsibility for Facilitating Private Investment by Leveraging Local Assets Community as a Facilitator: Success Stories For guidance, Hot Springs could look to the many cities that have adjusted local policies in order to facilitate investment by private actors who then undertake the deployment and operations of the network. These case studies have been compiled by Gig.U.54

1) Adopting Best Practices that Assist Local ISPs: East Lansing, MI Uniting a diverse group of stakeholders under its “Gigabit Ready” effort, Lansing created an attractive environment for its existing ISPs to upgrade.55 The Lansing Economic Area Partnership (LEAP), Michigan State University, nonprofits, and commercial property managers came together in 2012 to lower barriers to high-speed broadband deployment. To align incentives and capitalize on their unique partnership with local development companies, the Gigabit Ready Coalition created a Gigabit Certified Building Program operating similarly to the well-known LEED program.56In 2012, ISP Spartan-Net and property manager DTN Management Co. partnered to bring gigabit speeds to residences and apartment complexes in East Lansing.57

2) Using the Competitive Process to Stimulate an Upgrade in a City: Louisville, KY and College Station, TX Initial demand for faster speeds was fostered and articulated by Louisville’s residents, academics and the business community. To translate those voices into action, local advocates launched Louisville Fiber — a web-based tool that allowed residents who wanted a gigabit fiber network to input their address.58 The resulting heat map was informative for policymakers and also visualized demand for prospective vendors.

53 ftp://www.arkleg.state.ar.us/acts/2011/Public/ACT1050.pdf 5454 http://www.gig-u.org/ 55 http://new.gigabitready.com/ 56 Ibid. 57 http://statenews.com/index.php/article/2012/07/msu_lansing_on_track_for_high_speed_internet 58 http://www.louisvillefiber.com/

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The city government released an RFI in November 2013 and received six responses. The RFI pushed Louisville to confront its fiber-readiness. It made adjustments to its plans in order to attract vendors, such as increasing the proposed franchise period from 15 to 20 years and reducing the bonding requirement, and issued an RFP. In July 2014, Louisville approved three new 20-year franchise agreements for fiber network build-outs — one with Louisville-based BGN Networks, one with London- based SiFi and another with New York-based FiberTech.59

Similarly, College Station, Texas, home of Texas A&M, used a Request For Proposal (RFP) to test the market.60 In this case, the process stimulated an incumbent cable provider, Suddenlink, to respond by announcing it would spend $250 million to upgrade its company-wide network to make it gigabit capable.61 College Station will be the first Suddenlink market to see the upgrade, providing the community with what it believes it needs to keep and attract bandwidth hungry businesses and residents.

3) Using the Competitive Process to Stimulate an Upgrade in a Region: North Carolina The North Carolina Next Generation Network (NCNGN) project is a collection of four universities (Wake Forest, University of North Carolina-Chapel Hill, Duke, and North Carolina State) and six municipalities (Carrboro, Cary, Winston-Salem, Chapel Hill, Durham and Raleigh) which shared knowledge and resources to release a single RFP.62 It articulated the region’s objectives and sought vendors to build and operate a gigabit fiber network. The RFP was released in February 2013 and attracted eight responses.63 Since then, several of the NCNGN cities have caught the attention of major national providers, including AT&T and Frontier Communications, with has launched a gigabit network in parts of Durham, as well as RST Fiber, a start-up that has also announced plans to enter with a fiber offering.64 In 2015, Google announced it would deploy fiber to the Research Triangle Park areas.65

4) Using the Competitive Process to Stimulate an Upgrade in a State: Connecticut Connecticut is pursuing statewide strategy. In April 2014, the state hosted a conference on gigabit networks for municipal leaders.66 Then, in September, the mayors of West Hartford, New Haven and Stamford announced the release of a joint RFQ (“Request for Qualifications”), inviting other cities to likewise express interest and share information.67 By December, 46 cities, constituting half the population of the state, had joined in the effort. In January 2015, the RFQ received 11 bids, which are now being reviewed.68 The intentional interaction between state and city-level officials is not only facilitating a conversation, it’s creating a powerful network of stakeholders with a shared goal: that Connecticut be the first “gigabit state.”69

59 http://www.bizjournals.com/louisville/news/2014/07/25/louisville-metro-council-approves-fiber-internet.html 60 http://researchvalley.org/wp-content/uploads/2013/10/RVTC-RFI_102313-InformationalSession_v2.pdf 61 http://www.kbtx.com/home/headlines/GigaSpeed-Internet-Soon-to-be-Offered-in-BCS-276059641.html 62 http://ncngn.net/wp/ 63 http://www.tjcog.org/Data/Sites/1/media/regional-planning/econdev/next- generation/NCNGN_RFP_02012013.pdf 64 http://wraltechwire.com/frontier-significant-progress-already-being-made-with-own-fiber-network-/14394979/ 65 http://www.wncn.com/story/27950550/google-fiber-to-offer-ultra-fast-internet-service-in-the-triangle-charlotte 66 http://www.gig-u.org/cms/assets/uploads/2014/04/Blair-Levin-remarks-to-Connecticut-Gig-Conference.pdf 67 http://www.ct.gov/occ/lib/occ/091514_gig_press_release.pdf 68 http://www.hartfordbusiness.com/article/20150123/NEWS01/150129958/gigabit-coalition-receives-11-secret- responses 69 http://yaledailynews.com/blog/2015/01/16/connecticut-could-be-first-gigabit-state2/

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VII. ENABLING ACTION & REMOVING BARRIERS

Since the creation of the role of Arkansas’ state broadband manager, a primary activity has been to survey the state’s provider community to identify the barriers to broadband expansion, to gauge the likelihood of expansion, reasons for a lack of broadband coverage in unserved areas, and to solicit provider suggestions for eliminating barriers to expansion. In 2014, the Arkansas Telecommunications Provider Survey identified the following barriers to expansion of broadband:70

Chart VII.1: Barriers to Broadband Deployment

Expected Costs Exceed Revenue to Provide 44.8% Service Limited Opportunities to Expand 20.7%

State of the Economy 17.2%

Regulatory Issues 13.8%

Competition 3.4%

No Barriers 17.2%

Other 20.7%

0% 20% 40% 60% 80%

In addition, when asked whether there were locations within their service area to which they could not provide coverage, those who responded “yes,” reported the following reasons:

Chart VII.2 - Barriers to Expanding Service Area

Cost of Infrastructure 69.0%

Terrain 56.0%

Lack of Customer Base Willing to Subscribe to 44.0% Service

Access to Poles or Pole Attachment Fees 44.0%

Lack of Rights of Way 19.0%

0% 20% 40% 60% 80%

70 http://stc.arkansas.gov/Documents/Reduced-Broadband%20Manager's%20Activities- Operations%20Report%20(PE%2012.31.pdf

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Indeed, construction and deployment of high-quality broadband services – both wired and wireless –can be costly and time-consuming. Fiber-to-the-home, in particular, requires a massive construction effort – building fiber optics down every major and minor street where service will be offered, as well as from the curb to each user’s home or business. Even services that do not deliver fiber all the way to the premises, such as high-speed wireless, still require physical fiber construction to hub facilities and wireless antennas.

In 2010, when Google announced its Fiber project, it was designed to offer a gigabit service with broadband speeds 100 times faster than what most Americans were receiving at that time.71 For several years, incumbent providers did not react with improved services, saying instead that such services were too expensive and consumers didn’t require gigabit speeds.72 In the last year, however, as Google started to offer gigabit services at prices comparable to much slower offerings by cable and phone company providers and expanded Fiber's service territory, the incumbents and others have started to announce their own gigabit offerings at similar price points, setting the stage for a potential “gig war” in which tens of millions of Americans have the potential to receive faster, better and cheaper broadband.73

A critical lesson, in light of the recent investments and highlighted by organizations such as Next Century Cities and Gig.U, is the important role of local levers and leadership.74 While a federal deployment agenda is vital and has historically played a dominant role in broadband deployment, what Google Fiber understood and also exploited, was that the policies that encourage competition and move the needle most on lowering construction and operating costs are decided in city hall.

Hot Springs could facilitate that construction by an internet service provider through a range of technical and process strategies. The strategies that advances broadband deployment can be grouped into three general categories:

1) Strategies of ensuring access to and facilitating utilization of key assets 2) Strategies to streamline essential local processes such as permitting and inspection 3) Ways to make useful information available to potential broadband service providers In addition to these strategies, the Gig.U Assessment Worksheet, designed to assist communities in identifying assets, is included with this strategy guide. 1. Strategies for Ensuring Access and Facilitating Utilization of Key Assets One of the primary challenges to broadband expansion is the high capital cost of network construction. Hot Springs may own or control assets that can reduce the need to construct some elements of new networks and thereby reduce total up-front capital costs.

The following are best practices, policies, and case studies to be used as examples for lowering barriers and encouraging broadband infrastructure deployment. They include strategies for leasing public assets; underground construction (conduit installation, dig-once ordinances, and microtrenching); aerial

71 http://googlefiberblog.blogspot.com/search?updated-max=2010-02-10T08:20:00-08:00&max- results=10&start=120&by-date=false 72 http://www.wsj.com/articles/SB10001424127887324731304578193390432321484 73 https://www.washingtonpost.com/blogs/the-switch/wp/2015/04/02/comcasts-new-internet-service-is-twice-as- fast-as-google-fiber/ ; http://www.cnet.com/news/ting-mobile-follows-google-into-gigabit-broadband-biz/ 74 http://nextcenturycities.org/wp/wp-content/uploads/2015/07/NCCPolicyAgenda_Web.pdf

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construction (pole attachments and collocation); wireless deployment (vertical assets inventory and tower regulations); and in-building access. 1. I. Lease Public Assets Municipal fiber infrastructure and conduit represent valuable assets, particularly where construction is costly or difficult, such as downtown areas or alongside major roads. Because each fiber cable has dozens or hundreds of separate fiber strands, and each fiber optic strand holds enormous capacity, a community can sell or lease excessive strands with a fiber bundle without compromising the original purpose of the fiber (such as internal communications or traffic management). Excess strands in a local network can help in establishing a provider’s network backbone. If the locality’s fiber covers the key parts of the community, it can provide an immediate way to establish a point of presence. This is known as the middle-mile model, in which the network provider leases middle mile fiber from the municipality to connect from the public backbone to the residential customers. The network provider constructs the “last mile” fiber to the homes and businesses, or provides wireless last mile services.

If Hot Springs has available conduit, this can also be leveraged to accelerate broadband deployment. Placing fiber cables in existing conduit can reduce a provider’s need for construction – lowering its capital costs and time to build. In leasing existing fiber or conduit, the community benefits by speeding deployment, reducing damages and disruption to the rights-of-way, and obtaining lease revenue. I - a. Santa Monica, CA Santa Monica built a fiber network called City Net that has lowered its own costs for telecommunications, helped to retain businesses, and attracted new businesses to the community.75 The network was built in an incremental, but not ad hoc fashion. In coordination with other capital projects, such as connecting traffic signals or replacing water mains, the City found opportunity to build conduit and fiber to those location over time. The City’s Telecommunications Master Plan encouraged laying plenty of extra fiber, so when high tech firms like Google asked the City for access to its fiber, Santa Monica could oblige. As more businesses requested access, City Net developed various ways of meeting their needs. It will lease dark fiber to businesses that want it, including to other carriers that want to connect their customers. Leasing fiber to other service providers and providing services to local businesses has resulted in over $5 million in revenues - and growing - for the City General Fund.76 Businesses have been able to lower their costs by over 2/3 for high capacity connections, retaining and generating jobs in the community and keeping the office vacancy rate far below nearby communities. The accumulated savings has funded many public amenities, including free Wi-Fi in 32 hot zones and along nine major commercial corridors I - b. Lakeland, FL Lakeland’s municipal electric company, Lakeland Electric, began generating and providing electricity to customers in its service territory in 1904. In the mid-1990s, the utility began replacing older copper connections between substations with fiber-optic cable. Over time, the electric utility has incrementally expanded its fiber network to every building engaged in city business. The network is aerial, using the

75 http://www.ilsr.org/santa-monica-city-net/ 76 http://www.ilsr.org/wp-content/uploads/2014/03/santa-monica-city-net-fiber-2014-2.pdf

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utility's own poles to mount the fiber. Lakeland Electric currently leases dark fiber to its largest customer, Lakeland Regional Medical Center, which creates $225,000 per year in revenue to the general fund.77 I - c. Columbia, MO For more than twenty years, Columbia Water and Light (CW&L) has used its fiber network to support the department’s operations, passing information about controlling the water and electrical system. CW&L leases its excess dark fiber to 30 local anchor institutions and providers throughout Columbia, including education institutions, government entities, health care facilities, and internet service providers, who are then responsible for “lighting” the fiber, or connecting it. Leasing excess fiber creates approximately $900,000 in revenue annually.78 I - d. Ammon, ID Ammon, a town of just over 14,000 residents in southeast Idaho, has been incrementally building an open access, fiber optic network that has connected community anchor institutions and is starting to become available to local businesses. Ammon had struggled to boost economic development in part because providers in Ammon offer slower, more expensive services than are available in nearby Idaho Falls. With no municipal electric utility, the City partnered with Ammon’s water utility to deploy fiber optic cable, and now operates an open access network wherein the City leases capacity to independent service providers that provide retail services.79 II. Dig-Once Ordinances – Underground Construction Laying fiber optic cable is an expensive proposition because of the cost of labor and regulatory approvals required to gain access and dig the trenches required to install fiber. A “dig-once” policy is “a broadband deployment policy focused on increasing coordination between government agencies and utility companies to decrease the frequency of highway excavation.”80 Dig-once policies open streets and rights- of-way to utility construction when related projects are underway, thus realizing efficiencies in network construction by giving multiple entities the opportunity to place their facilities - resulting in a more uniform and efficient means of constructing network infrastructure.

Dig-once policies require a thoughtful analysis of the opportunities to lay fiber when road and bridge projects commence, but by digging trenches, providing conduit, and laying fiber during the road construction process, over 90% of the total cost is avoided.81 There are two main benefits to dig-once policies: (1) lowering costs of infrastructure deployment when completed in conjunction with other infrastructure improvements, and (2) promoting and facilitating integration of broadband infrastructure as part of local and regional economic development infrastructure initiatives.

The U.S. Department of Transportation’s Federal Highway Administration has listed several best practices for dig once policies, noting that dig once practices have been “recognized by state and local stakeholders

77 http://muninetworks.org/tags/tags/lakeland 78 https://www.gocolumbiamo.com/WaterandLight/Documents/BroadbandStudyColumbiaMO2014.pdf 79 http://muninetworks.org/content/transcript-community-broadband-bits-episode-86 80 http://www.gao.gov/assets/600/591928.pdf 81 https://www.nysbroadband.ny.gov/sites/default/files/documents/ToolkitFINAL_6-4-14.pdf

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as sensible solutions to expedite the deployment of fiber along main routes when implemented as part of a cooperative planning process.”82 Examples include: II - a. Sandy, Oregon Sandy passed an ordinance requiring all new development to install underground fiber along with other utilities.83 The approval of new development sites is predicated upon the developer incorporating the installation of fiber broadband, regardless of whether a public right-of-way. This ordinance ensures that the infrastructure is already there, making it less burdensome for internet service providers to expand broadband coverage. II - b. City of Centennial, CO The City of Centennial, Colorado collaborates with entities that are undertaking construction projects in the city. Each opportunity is evaluated as a means to extend city-owned fiber and conduit in new routes. As a result of this strategy, the city has successfully built hundreds of miles of fiber and conduit at relatively low cost and is currently seeking referendum authority to make these assets available for private sector use.84 II - c. Brentwood, CA Brentwood’s Municipal Code contains provisions requiring all “utility distribution facilities,” including communications systems, to be installed underground (waivers are permitted under extraordinary circumstances). Among these provisions, under the title “Advanced Technology Systems,” is the following: “The developer shall design, install, test and dedicate to the city two advanced technology system conduits… within the public right-of-way.”85 One of the conduits contains a fiber optic system for use by the city or one of its franchisees. The other conduit is to remain empty and available for future franchisees who prefer to run their own cables instead of using the City’s. Under this policy, the city expands its own network incrementally while extra capacity is installed to facilitate future fiber deployments by private providers. II – d. Santa Monica, CA Santa Monica has one of the most successful “dig once” policies in the United States, reducing the cost of laying fiber by up to 90 percent by coordinating fiber and conduit installation with other capital projects or in join trenching with other entities.86 Santa Monica adds an important feature to its “dig once” policy - requiring all utility operators to submit maps of all “antennas, pipelines, conduits, cables, vaults, pedestals, and all other associated facilities” located in public rights-of-way.87 These maps must be submitted on a yearly basis, unless no changes have occurred. This reporting activity streamlines future uses of these rights-of-way assets that in turn lower costs for future network builders.

82 www.fhwa.dot.gov/policy/otps/successprac.cfm 83 http://sandy.granicus.com/MediaPlayer.php?view_id=2&clip_id=357&meta_id=16562%C2%90 84 http://www.ctcnet.us/wp-content/uploads/2014/01/GigabitCommunities.pdf 85 http://qcode.us/codes/brentwood/view.php?topic=16-16_120-16_120_120&frames=on 86 http://www.ilsr.org/wp-content/uploads/2014/03/santa-monica-city-net-fiber-2014-2.pdf 87 http://www.qcode.us/codes/santamonica/view.php?topic=7-7_06-7_06_300&frames=on

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II – e. Poulsbo, WA Poulsbo, Washington, adopted a policy that requires private companies to use publicly-owned conduit and applies to all road construction, whether done by the city or any other entity. Poulsbo’s policy further distinguishes between different types of roadways, requiring higher capacity conduit along “all new collector or arterial public streets serving or abutting residential development, and in all new public streets serving or abutting nonresidential development.”88 This tailoring of conduit capacity to roadway capacity can lower overall “dig once” costs by allowing lower capacity conduit to be installed where appropriate.

II - f. Mount Vernon, WA The city of Mount Vernon in Washington State has implemented a “dig once” conduit policy that specifically applies to “the construction of improvements such as buildings, homes, subdivisions, streets, and utilities.”89 All such projects are required to “construct and install telecommunications conduit on all streets that are affected, disturbed, constructed and/or improved by development unless otherwise approved, pending a review by the city engineer.” III. Conduit Installation – Underground Construction Timely placement of empty broadband conduit, conduit for fiber optic cables that support broadband or, where appropriate, and wireless facilities for broadband service, can dramatically reduce costs and speed up network upgrades.90 The National Broadband Plan noted that “the cost of running a strand of fiber 91 through an existing conduit is 3-4 times cheaper than constructing a new aerial build.” The cost of building or upgrading a network in areas where streets need to be dug up is substantially higher than the cost of building or upgrading a network where there is sufficient empty space in conduit that was placed with foresight years earlier. Examples include: III - a. Mesa, AZ Mesa is one of the nation’s largest communities to benefit from the city taking responsibility to ensure conduit and fiber are available throughout the city. The City pioneered underground communications conduit infrastructure in the 1990s. Mesa’s joint trenching projects enabled construction of conduit in the lease disruptive manner and offered low-cost construction opportunities for commercial providers and business. Through their efforts, Mesa has 150 miles of fiber running through the community. 92 Additionally, the government holds regular meetings with providers and offers full transparency with construction projects, existing assets and works with broadband vendors to identify abandoned utility infrastructure in order to ensure that the city remains well connected. III - b. Boston, MA In an effort to minimize excavations on the busy streets of Boston, the City adopted a policy in 1994 that mandated all telecom carriers to install their underground conduits “in the same trench, at the same time

88 http://www.codepublishing.com/wa/poulsbo/html/Poulsbo12/Poulsbo1202.html 89 http://codepublishing.com/wa/mountvernon/html/mountvernon12/MountVernon1220.html#12.20 90 http://www.gpo.gov/fdsys/pkg/BILLS-112hr1695ih/pdf/BILLS-112hr1695ih.pdf 91 http://www.fcc.gov/national-broadband-plan. 92 http://www.muninetworks.org/content/mesas-focus-dig-once-and-fiber-leases-pays-community-broadband-bits- podcast-139.

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on shared-cost basis.”93 The "joint build" policy that was created put the local telecoms in a leading role for planning and providing telecommunication services for the City. The policy dictates the establishment of a “lead company” which is any company that approaches the city government first with a build-out request, thus taking the lead in construction coordination. The joint build approach has worked very well in Boston to minimize street excavation and has sped up the deployment process because all companies are required to work together to install their infrastructure at the same time. In addition, construction costs, including digging the trench, installing the conduit and repaving, are shared by all companies participating in the build-out.94 III - c. Utah Department of Transportation (UDOT) As featured in a case study in the White House’s “Implementing Order 13616: Progress on Accelerating Broadband Infrastructure Deployment,” the Utah Department of Transportation (UDOT) has successfully facilitated the expansion of broadband infrastructure in remote areas of the State where highway rights- of-way are open at all times. UDOT also installs empty conduit during highway construction as well as teaches local communities how to install conduit, which due to cooperating telecom providers, has extended infrastructure to rural communities.95 IV. Microtrenching – Underground Construction Micro-trenching is defined as “a low-impact deployment methodology in which fiber and conduit are inserted into a slot-cut trench less than ¾ inch wide and between 9-12 inches deep – without damaging or 96 disrupting existing infrastructure.” The benefits of microtrenching are that it is less disruptive than other broadband expansion methods, offers faster deployment speeds, and has significant cost-savings. Examples include: IV - a. Jackson, WY In addition to its 9,800 residents, Jackson, WY sees a large influx of tourists each year, making reliable broadband a crucial component to economic development for the town. After securing grants from the National Telecommunications and Information Administration (NTIA) and Broadband Technology Opportunities Program (BTOP), a local provider launched the Teton Broadband Project in an effort to upgrade the fiber network of Jackson. As a popular tourist destination, minimal disruption to the environment was important to keep the integrity of the surrounding land. As a result, the project opted to use a provider for fiber installation that employed multiple techniques – directional drilling, conventional trenching, and microtrenching. The microtrenching technology use was planned for the areas within the Jackson city limits to least disrupt residents and businesses, providing a valuable solution for Jackson’s issue of expanding broadband in an efficient and minimally invasive fashion. IV - b. New York, NY New York City has revised the Department of Information Technology and Telecommunications’ (DoITT) rules to add a chapter authorizing and regulating the use of microtrenching.97 In November 2012, DoITT

93 https://www.whitehouse.gov/sites/default/files/microsites/ostp/broadband_eo_implementation.pdf 94 http://www.fhwa.dot.gov/policy/otps/successprac.cfm 95 https://www.whitehouse.gov/sites/default/files/microsites/ostp/broadband_eo_implementation.pdf 96 http://www.bbcmag.com/2009issues/may-june09/BBP_MayJune09_MicroTrenching.pdf 97 https://rules.cityofnewyork.us/content/microtrenching-rules-1

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and the Department of Transportation launched a pilot program with Verizon to test microtrenching as an alternative to conventional measures. The purpose was to determine if the new technology would be less disruptive to pedestrian and vehicular traffic and to the structural integrity of the streets. DoITT also aimed to determine if microtrenching could offer cost- and time-savings. Tests in all five boroughs were performed successfully offering indication that this new form of trenching could save the city money and time. As a result, DoITT has chosen to offer microtrenching as an alternative to conventional methods. IV - c. Loma Linda, CA Loma Linda, installed a municipality-wide fiber-to-the-premise network using microtrenching technologies. The city’s economy, which is dominated by the healthcare field, was faced with the issue of needing to deliver higher capacity fiber connections to homes, hospitals, and other businesses. In order to upgrade beyond DSL, the city chose to install its own FFTP network. While traditional last mile deployments were expensive and disruptive potentially causing major road closures, Loma Linda turned to a company, m2fx, and adopted its solution: pushable fiber cable and micro ducts in combination with micro trenching. This not only brought down the cost of last mile deployment, but also saved the city time. A savings of 64-76% percent was cited, and Loma Linda reportedly benefited through improved healthcare, business investment, and city efficiency and safety.98 V. Pole Attachment – Aerial Construction Running fiber aerially along utility poles is often significantly cheaper (and less intrusive) than running fiber underground. However, in the 2013 Arkansas Telecommunications Provider Survey, providers listed pole attachments as key barrier to service area expansion.99 Indeed, the FCC’s National Broadband Plan concluded that, “the expense of obtaining permits and leasing pole attachments and rights-of-way can amount to 20 percent of the cost of fiber deployment. These costs can be reduced directly by cutting fees. 100 These costs can also be lowered indirectly by expediting processes.”

There are several reasons pole attachments represent a barrier to deployment. First, the process and time schedules for negotiating access to utility poles vary depending on the type of utility company that owns the poles. Further, the process of attaching equipment to an existing pole, such as moving wires and other equipment and coordinating with electric and safety codes, can take months to complete. In addition, many existing utility poles either do not have sufficient space for attachment of new communications providers or have existing communications providers attached in an inefficient manner, requiring those attachments to be moved to accommodate a new provider.101

The lack of a fixed, uniform protocol creates uncertainty, which in turn, deters investment and makes above ground construction more costly than running fiber underground. Municipalities can encourage private pole owners to consolidate attachments, reserve pole space, and undertake steps that may reduce make- ready time and costs – thereby reducing the average cost of aerial fiber construction. In addition, evaluating, streamlining, and reducing permitting fees can lower construction costs for broadband providers and incent further build-out as a result. Examples include:

98http://www.coretelecom.net/media/pdf/m2fx%20Miniflex%20Pushable%20Fiber%20and%20the%20City%20of%2 0Loma%20Linda.pdf 99 http://stc.arkansas.gov/Documents/Broadband_2014.pdf 100 http://www.broadband.gov/plan/6-infrastructure/ 101 http://www.ctcnet.us/wp-content/uploads/2014/01/GigabitCommunities.pdf

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V - a. State of Vermont The state of Vermont is one of the few states with a state-level policy regarding pole attachments, tariffs, and coordination of providers. According to the Vermont Telecommunications Authority, “to facilitate the deployment of pole-top attachments, the VTA, the Department of Public Service, and Vermont utilities have produced a ‘Vermont Standard Pole-Top Attachment.’ The Vermont Public Service Board Rule 3.700, and utility tariffs adopted pursuant to it, govern pole attachments in Vermont. These rules allow use of utility poles, including use by Broadband Service Providers and establish when broadband and cellular providers may attach within or above the electric space.”102 V - b. Connecticut The Connecticut Public Regulatory Authority implemented a single administrator through state legislation. The single pole administrator manages pole administration issues and works to create greater efficiency, transparency, and accountability in pole attachment services.103 V - c. Google Fiber Cities: Kansas City, KS and Austin, TX Google addressed pole attachment in Kansas City, KS, which has a municipal electric company, and then leveraged the public reaction to strike a deal with private pole providers in Kansas City, MO, who did not want to be seen as obstacles to Google Fiber expansion in their city. In Kansas City and Austin, the local governments aimed to attract Google Fiber by reducing barriers to service entry. The permitting process was expedited and both cities offered access to public rights-of-way at little or no cost to Google. Additionally, Google Fiber was allowed to build out its network selectively being based on consumer demand which allowed for a better profit margin for the company.104 VI. Collocation – Aerial Construction Collocation is defined by the FCC as “the mounting or installation of an antenna on an existing tower, building, or structure for the purpose of transmitting and/or receiving radio frequency signals for 105 communications purposes.” Collocation helps wireless communications providers meet the demands for service and new facilities by permitting placement of transmission equipment on existing towers. Collocation can also minimize the number of towers and poles needed for broadband build-out.

The FCC’s current collocation requirement allows competing carriers to place their equipment on the 106 incumbent carrier’s premises, and according to recently approved rules on tower regulation, states and local governments are required to approve any eligible facilities requests for modification (including 107 collocation) of an existing tower as long as it does not “substantially change” the tower. By lowering costs and barriers to expansion, collocation can increase broadband service in communities. Examples include:

102 http://www.telecomvt.org/providers/psb-pole-attachment.php 103 http://www.ct.gov/occ/lib/occ/6.14.13billocc_comments_on_spa_wg_recommendations_053013.pdf 104 http://www.wired.com/2013/07/we-need-to-stop-focusing-on-just-cable-companies-and-blame-local- government-for-dismal-broadband-competition/ 105 http://wireless.fcc.gov/releases/da010691a.pdf 106 http://www.fcc.gov/encyclopedia/collocation-requirements 107 http://www.fcc.gov/document/local-review-collocation-applications-interpretive-guidance

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VI - a. Princeton, IA The City of Princeton, Iowa, has local ordinances designed to ensure collocation of wireless facilities with more than one provider. In the City’s own words, it “recognizes and desires to encourage the orderly development of wireless communication for the benefit of the City and its citizens.” 108 VI - b. Santa Monica, CA Santa Monica developed a program called “Santa Monica CityNet” which offers local businesses 10 Gbps fiber and collocation services. Many technology and entertainment businesses located in the area benefit from fiber infrastructure, which provides “secure, fast, and cost-effective” service. According to the City of Santa Monica, “the city offers 100 Mbps, 1 Gbps, and 10 Gbps fiber optic connections from Santa Monica City Net On-net buildings to any of the Internet Service Providers (ISPs) connected to the Santa Monica City 109 Net Lit Fiber Optic Network in downtown Los Angeles.” VII. Tower Regulations – Wireless Deployment Many local jurisdictions regulate tower location, tower height, and tower design including color, lighting, and screening of base facilities. Reducing these barriers can accelerate infrastructure investment and reduce related costs. Examples include: VII - a. Emmet County, MI Emmett County revised its zoning ordinance’s tower section to address Internet towers. According to the new language, an Internet tower may be permitted if: a) The tower is constructed in a manner and location that eliminates the danger of falling on adjacent properties or on electric power lines, b) The tower complies with federal regulations, c) The tower is no taller than 60 feet above the natural grade with a diameter no larger than 18 inches, d) An affidavit identifying the tower be used solely by the owner and/or occupant of the property is signed and recorded prior to the issuance of a zoning permit.

If a tower is to be taller than 60 feet, it may still be approved with a public hearing and if it is of no danger of falling on adjacent properties or power lines, is compliant with federal regulations, and can prove the height is necessary to “reasonably accommodate internet service needs.” VII - b. Clark County, NV Clark County’s land use strategy documents regarding communication towers and antennas clearly list situations in which no permit is needed (e.g., an antenna is not visible), an administrative review is available (e.g., location on public property), or special use review is required.110 With easily accessible documents, the County helps telecommunications carriers avoid public hearings which serves as a major incentive for the providers.111

108 http://www.princetoniowa.us/codes/chapter156.htm 109 http://www.smgov.net/departments/isd/smcitynet.aspx 110 http://www.clarkcountynv.gov/Depts/comprehensive_planning/zoning/Documents/3044.pdf 111 http://www.clarkcountynv.gov/Depts/comprehensive_planning/zoning/Documents/cklist_towers.pdf

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VIII. Vertical Assets Inventory – Wireless Deployment Leveraging existing infrastructure and implementing innovative fee structures can help to reduce the costs of broadband build-out in particularly rural areas. “Vertical assets” are defined as structures onto which wired broadband equipment can be mounted and positioned to broadcast a signal over as much terrain as possible. A community’s vertical assets include communications towers, water tanks, grain silos, multi-story buildings, and other structures potentially useful in deploying affordable, reliable wireless broadband in less populated, rural localities or topographically challenged regions. By creating a vertical assets inventory, data is provided for private and public investment decisions. Additionally, the sharing of these vertical assets and other infrastructure among broadband providers limits duplication and gears investment toward underserved areas. Infrastructure sharing and innovative fee structures can enhance competition and encourage other providers to enter the market due to reduced costs of entrance and less development risk given the sunk costs associated with the investment. Examples include: VIII - a. Marion County, SC Marion County, a rural area of South Carolina, struggled with robust Internet access often relying on expensive satellite connections for coverage solutions. The county attempted to solve the issue for residents, and after meeting with Connected Nation and assessing current providers' coverage in the area, identified a local fixed wireless provider who offered a solution.112 With donated tower infrastructure from the county, the provider was willing to install new equipment on existing vertical assets, free of charge, in order to bring broadband to the unserved and underserved community. VIII - b. Missoula, MT City Councilmen in Missoula, MT voted to reduce its fees to excavate and install new fiber-optic lines in the public right-of-way by 75 percent. According to Councilor Caitlin Copple, “It’s a gesture of good will to the service providers that we want to work with them. It was a unanimous vote, and it shows Missoula is serious 113 about business.” This decision came after a feasibility study was completed exploring how Missoula could create a twenty-first century broadband network and a citywide map revealing broadband access in the area. Permitting fees for new fiber installations were reduced from a baseline cost of $2,078 for the first 600 linear feet to just $300 for the first 300 linear feet. VIII - c. State of Virginia The state of Virginia saw that “there are still many areas where signal strength and network carrying capacity are insufficient to meet consumer demand” which led to the development of a Vertical Assets 114 Inventory Toolkit and Database. According to the website administered by the Virginia Secretary of Technology’s office, “[t]he Vertical Assets website serves as a repository of location information for tall structures that have the potential to serve as wireless transmission sites. Vertical Assets aims to bring

112 http://www.connectiowa.org/sites/default/files/connected- nation/broadband_infrastructure_at_a_state_and_local_level_in_iowa_final2.pdf 113 http://missoulian.com/business/local/new-network-map-reveals-missoula-s-internet-needs/article_7b24c2e1- 7927-5f8e-bc2e-323d8ac74d48.html 114 http://www.wired.virginia.gov/wp-content/uploads/Broadband/Virginia-Resources/VerticalAssets14.pdf

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owners and managers of these sites together with wireless Internet service providers in order to facilitate 115 the integration of broadband and information technology into state and local economies.” IX. Revision of Building Codes – In-Building Access One significant barrier to new network providers is the entry into a building or development. A government can improve services to its residents and businesses if it requires by code – or creates an incentive for developers to build – additional pathways from the public rights-of-way to a demarcation point in the building, and then requires internal, standards-compliant building cabling or cable pathways in new construction or major renovations. These strategies represent a small burden for developers, and a potentially noteworthy incremental benefit to the locality – especially if the community is likely to see extensive rehabilitation of existing residential units over time. Examples include: IX - a. Loma Linda, CA This model was pioneered by the city of Loma Linda, CA through its Connected Community Program.116 In conjunction with the city’s development of a citywide fiber optic network, the city council added connectivity standards to the building code. Loma Linda added language to city building codes, requiring all new commercial and residential developments (or re-models involving greater than 50% of the structure) to equip new structures with a fiber and copper cabling. Per the City Ordinance:117

“In recognition of the need to provide local residents and businesses within the community with additional options to meet their telecommunications needs, as adopted by city council resolution, all new development projects within the city, regardless of whether such new development falls within the fiber-optic master plan area, and additions that exceed more than fifty percent of the original structure that fall within the fiber-optic master plan area, will be required to participate in, and will be bound by, the connected community program and all conditions and requirements contained therein. Further, any conditions or requirements of the connected community program may be required as a condition of approval of any such new development or addition exceeding fifty percent of the original structure. (Ord. 629 § 1, 2004).” IX - b. Jerome, ID In Jerome, all new subdivisions are now required to install fiber-conduit. According to the town’s subdivision regulations:118

“Fiber Optical Conduit: All developers will be required to pay for and install two inch (2”) SDR11 Smoothwall Innerduct fiber optical conduit, which is orange in color, with pull rope, PG style service boxes, forty-seven inches (47”) high by forty-eight inch (48”) open bottom and PG style heavy duty cover with support beam. The placement and construction of the fiber optical conduit shall be done in accordance with the city of Jerome standards and at the discretion of the city engineer. (Ord. 994 §2, 2006).”

115 http://www.vait.gis.bev.vt.edu/index.php 116 http://www.lomalinda-ca.gov/asp/Site/LLCCP/AboutLLCCP/Introduction/index.asp 117 http://qcode.us/codes/lomalinda/view.php?topic=15-15_54-15_54_010 118 http://www.ci.jerome.id.us/wwwroot/userfiles/documents/16/frmPlatReviewNarrative.doc

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2. Strategies for Streamlining Essential Local Processes Local governments should make permitting as easy as possible. By streamlining and publicizing permitting process, the community can not only reduce the cost of potential deployment, but also ensure a network owner will collect revenue more rapidly, both of which make a community a better prospect for investment. Transparency about processes and timelines enables broadband companies to expeditiously plan and deploy networks and enables localities to manage the costs and burdens of the processes necessary to meet broadband providers’ needs. Localities and providers can cooperatively plan before construction so as to understand respective schedules and needs, and so that the provider can plan to stage its work around known and predictable local processes. I. Build Broadband into Planning and Staffing of all Relevant Agencies An initial strategy is to review and address any organizational stovepipes that might exist within Hot Springs—separations between information technology, permitting, engineering, and utility departments, for example—and again require that local infrastructure be documented as part of upgrade and improvement projects and regular maintenance. For example, the entities and agencies managing conduit may be separated from broadband and network planning agencies by internal reporting structures, and there may need to be leadership intervention for these entities to share and collaborate.

Hot Springs should consider developing processes and structures that formalize the roles of department leadership in broadband planning, and ensure that any broadband opportunity is identified, receives proper review, and is acted upon promptly. Processes and structures will work best if they are mandated by the community’s legislative body, and the process is widely understood as a means of getting more for the locality as a whole. To that end, elected leaders and staff should be informed about progress or activity in broadband, which should create a positive feeling about the value of the process.

A strong coordination process has the following elements:119

 A clear point of entry  Applicability to small and large projects  Review by expert individuals  Consultation with all relevant departments  Speed  Accountability  Transparency  Support of local leaders 2. II. Streamline Local Processes for Permitting Efficient and streamlined processes can be one way in which broadband projects may proceed expeditiously. It is recommended that all processes required for a broadband project be formalized and well publicized to the industry. These range from rights-of-way access to permitting to final inspection and approval. Full transparency about these processes is the single most effective means by which to enable the communications industry to expeditiously plan and deploy networks.

119 http://www.ctcnet.us/wp-content/uploads/2014/01/GigabitCommunities.pdf

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For example, however long the Hot Springs’ current process for reviewing and approving permit applications, that process and timeframe should be publicized and then consistently met. While Hot Springs may occasionally have limited resources— sometime many different companies and industries can simultaneously require local permit review and other types of local support. Thus, local needs and resources should determine how long the process will take—while transparency about the amount of time, and a firm commitment to adhering to that timeframe, will meet the needs of the private entity. The private ISP may wish for a faster process, but at a minimum it will have the benefit of a transparent and open process—with a predictable timeframe under which it can plan its own project.

In Indiana, the Broadband Ready Communities Development Center was created to encourage broadband deployment by serving as both an information resources and by certifying local communities as being “broadband ready.”120 The Broadband Ready Community certification sends a signal to the telecommunication industry that a community has taken steps to reduce barriers to broadband infrastructure investment. In order to comply with statutory requirements, a unit seeking the Broadband Ready Community certification must institute procedures that provide for:

1. The appointment of a single point of contact for all matters related to broadband development projects; 2. The establishment of procedures to allow for the electronic submission of all forms, applications, and documentation required for a broadband development project; 3. A requirement that all permit applications are approved or denied within 10 business days after they are filed; and 4. An assurance that all inspections related to a broadband project will be completed in a timely and expeditious manner. These procedures must also prohibit the unit from:

5. Requiring the designation of a final contractor to complete a broadband project; 6. Imposing a fee to review an application or to issue a permit on a broadband project; 7. Imposing a seasonal moratorium on the issuance of permits for a project; and 8. Discriminating among communications service providers.121

3. Making Useful Information Accessible By publishing data regarding existing fiber, conduit, and other relevant assets, Hot Springs can enable providers to consider leasing local infrastructure as part of their network designs and business plans. Access to this information can both attract and speed new construction by private partners, while enabling the community to meet its goals for new, better broadband networks—and potentially to realize revenues for use of the assets.

120 http://iedc.in.gov/programs-initiatives/broadband-ready-communities-development-center 121 http://iedc.in.gov/assets/files/Docs/2015%20downloads/Broadband%20Ready%20Fact%20Sheet%20(07172015)(1). pdf

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I. GIS Data Sets The Hot Springs GIS Department should ensure that the following data sets are publically available where possible, though some restrictions (such as Homeland Security concerns) may prevent their disclosure.

 Addresses and streets  Rights-of-way and easements  Building footprints  Streetlights  Neighborhood boundaries  Parcels  Utility poles  Overhead strand  Conduit  Fiber  Manholes  Zoning  Existing underground utilities

This kind of detailed information can enable a prospective broadband provider to plan efficiently in a range of areas. First, the provider can learn what resources exist (such as space in the rights-of-way space, manholes, poles, and conduits) that are usable and leasable for the project and who to contact about leasing those resources. Second, the provider can develop more accurate forecasts of construction costs and schedules and identify in advance areas of risk and critical path items, such as easement access and bridge crossings. Third, the builder can create a large percentage of the outside plant design from the existing information, reducing the time and effort needed for fieldwork.122 2. Document Conduit and Fiber Assets Conduit and municipally-owned fiber’s utility is frequently only as good as the documentation that enables the locality (or its private partners) to understand where and how it is built and maintained. For example, fiber optic construction requires high-quality documentation and GIS mapping as part of the initial and lifecycle budgets. Well-documented conduit, like well-documented fiber, requires effort and consistency, and needs to be regularly updated. Conduit Best Practices  Conduit documentation should include the path, size, location (vertical and horizontal), access points, and design specifications (bends, availability of pull strings, composition).  Documentation should be centralized. For example, conduit information might be stored on paper maps or standalone CAD files of individual site plans or traffic intersections, or may be on separate permit applications (which may not be retained over time). Over time, conduit might have been given away, sold, traded, or simply taken by another utility. Also, conduit built for one purpose (twisted-pair copper, power) might not be suitable for broadband. In the case of conduit built for copper, the bend radius might not support fiber cables. In the case of conduit built for power, there

122 http://www.ctcnet.us/wp-content/uploads/2014/01/GigabitCommunities.pdf

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may not be sufficient clearance from power lines to safely use for fiber. Sufficient documentation can enable localities to track and understand these issues and plan accordingly. Fiber Best Practices  In order to create value, the locality’s fiber documentation should indicate where the fiber is, whether it is aerial or underground, and where it is located spatially on a pole or underground.  Fiber documentation should also include conduit color, fiber count, pole locations, and location of asset points.

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VIII. COMMUNITY-DRIVEN WI-FI

In the early 2000s, many cities around the world announced plans to construct city-wide Wi-Fi networks. Despite some high-profile failures in citywide municipal Wi-Fi, recently several smaller-scale projects have found their footing, often building the network for other municipal purposes, such as automated meter reading or public safety.123 Providing public Wi-Fi zones and hotspots is not in any way equivalent to rolling out fiber-to-the-home gigabit service, but it can be part of any city’s incremental connectivity plan – either as a stepping-stone to future, more robust offerings or a complementary service to other offerings. Public Wi-Fi also offers benefits to disaster relief, economic development and digital literacy, and tourism and town promotion. How to Create a Wi-Fi Zone Three main models exist for creating Wi-Fi zones.

 Wi-FI zones created by a wireless ISP (e.g. Boingo Wireless)  Wi-Fi zone set up by a company that uses existing ISP (e.g. Starbucks and Google)  Wi-Fi set up by local community

While it is recommended that Hot Springs complete an engineering feasibility study in order to gain a better sense of what is possible, the Vermont Council on Rural Development’s Planning and Implementing a Wi- Fi Zone guide offers an easy to understand guide to developing a community-drive Wi-Fi zone.124 Step 1: Meshing In contrast to a Wi-Fi hotspot, which you might find in a coffee shop or restaurant, “Wi-Fi zones” utilize a mesh system, whereby several devices are installed which “talk to each other.” By using devices that mesh, a Wi-Fi zone covers much more area than a hotspot. To create a “wireless mesh” several pieces of hardware are installed that talk to each other and serve to create a zone. They mesh with each other, meaning that as you walk through the zone, your smart phone or computer will pick up the signal from whatever hardware you are closest to without disconnecting from the one you are leaving behind and asking you to reconnect to a new area. The result is a larger area with very good signal throughout. Step 2: The Equipment Hardware There are a number of different hardware options that you can use to create a wireless mesh network.

Access Point In a wireless network, an access point is a station that transmits and receives data. Each access point can serve multiple users within the defined network area; as people move beyond the range of one access point, they are automatically handed over to the next one. The number of access points required increases as a function of the number of network users and the physical size of the network.

123 Failures: Sunnyvale, CA - http://www.muniwireless.com/2009/09/28/st-cloud-shuts-down-free-citywide-wifi- service/ ; Philadelphia, PA- http://technical.ly/philly/2015/03/04/cities-learn-phillys-failed-municipal-broadband- effort/ ; Seattle, WA - http://www.zdnet.com/article/seattle-ends-free-wi-fi/ ; 124 http://vtrural.org/programs/digital-economy/services/wifi/toolkit

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For an outdoor wireless mesh, Hot Springs should consider equipment that can withstand rain and both high and low temperatures. There were a number of options for these types of equipment, including (but not limited to):

 Cisco Aironet & Meraki  Aerohive  Aruba  Ruckus Wireless  Firetide

Gateway Most of the devices listed above function as both gateways and repeaters. A gateway takes internet from a dedicated connection (it is plugged in, usually with a Power over Ethernet cable,) to a standard internet connection. For municipal Wi-Fi zones, a basic business level subscription is recommended. This connection is what brings Internet to the Wi-Fi zone.

Repeater Typically the same piece of hardware as a gateway, repeaters are not hardwired to the Internet. Rather, they extend the size of the Wi-Fi zone by repeating the Internet connection via one or more radios, and meshing with each other. One benefit of many of these systems is that these devices begin as gateways, but if the internet connection fails, they will automatically reconfigure into repeaters, taking a signal from another Gateway. Software Software is used for monitoring the zone and to ensure everything is working correctly. This software is also called a “cloud controller” because it resides on remote servers (the “cloud”) and can be accessed via the internet from anywhere.

Controls Most cloud controllers utilize a proprietary dashboard to monitor the zone. The cloud controller is password protected, and can be accessed through any browser. The controller can:

 Monitor access points: See what the load on each access point is, and flag when there is any issue associated with that access point.  Track usage: Delve down to individual IPs and see who is using what site, as well as how long each IP is on the network for. This means that it is possible to find and potentially block abusers of the free network. (For instance if a user is downloading illegal music, he/she can be kicked off or blocked completely from the network.) It also means that it is possible to see which sites are most popularly visited on the network. For example, is it used mostly for checking email, or for reading local restaurant reviews?  Track number of clients: This is helpful in monitoring when the busiest times of the day are. For example, you can see spikes during town festivals. It is also tracked per access point, so you can see how many people are connected to each individual access point.  Track speed: See what the upload and download speed on the network is, as well as on each access point, and change it if necessary.

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 Track OS, manufacturers, and clients: See exactly what types of devices people on the network are using. If it is mostly phones, for instance, then maybe creating more responsive web design is in order for optimized usage.  Configure access control: Change access to the network based on individual IPs, or by Access Point. There is even the option of creating a private network on a single Access Point that is completely separate from the public network. You can also set the network to time people off every thirty minutes, for example, so they have to log back in to continue using the free internet.  Administrate splash page, and user experience: Create a splash page that makes each user agree to the terms and conditions of using the public internet. This page can also advertise those individuals or businesses who are donating bandwidth. It can redirect to whatever landing page is decided on. These landing pages often advertise the town, for instance: http://wirelesswoodstock.org/ Step 3: Incorporating the Community In order to successfully support a Wi-Fi zone, Hot Springs should pursue buy-in from multiple stakeholders. On a practical level, you should identify a stakeholder to moderate the zone, and an organization to take ownership of the equipment. On a larger scale, the more voices that are included in the planning process of the zone, the more people will be informed about it, and the more successful it will ultimately be. Necessary stakeholders in creating the zone include:

 Local business owners  Local town or city government officials  local downtown revitalization groups The town must also designate a Moderator and a Point Person: Moderator Responsibilities  Look after the Wi-Fi zone once it is up and running  Moderate the zone, using the cloud software provided, to ensure there is no abuse of the free internet  Be the first point of contact for community members with questions once the zone is live  Be responsible for maintaining the zone, and moderating it through cloud-controller Monitoring the system can take as much or as little time as the monitor wants to put into it. With many towns, once the network is set up so that a few key sites or types of content are blocked, and a few security measures are put in place, the network can run by itself. However, in other communities, the monitor checks in weekly to make sure there is no abuse. Others, who are more interested, may choose to spend more time analyzing the network and adjusting the usage, but once it is set up, this isn’t necessary. The network can be set up to email the monitor once a month with a report, and will also email if an access point goes down. This is when the monitor will need to check the problem and see whether the internet or power has gone down, and whether the access point needs to be restarted or if customer service should be called.

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Point Person Responsibilities  Connect with members within the town to gain input into best placement for the overall zone  Gain permission from landlords, select boards, and town businesspeople for equipment placement on their buildings  Address any concerns that the community might have about the project  Be responsible for coordinating the process, creating a liaison between business owners and technicians Many municipalities also contract with an experienced technician to survey local sites to determine best positions for the gateway and repeaters. Ideally a contractor should have experience with wireless networking and the software necessary to test signal strength when conducting a site survey to plan the zone. The point person in town works with the contractor to find best locations for the equipment, then with building owners for permission to place the equipment at these sites. Step 4: Maintaining the Zone Once the zone is up and running, it will require some ongoing maintenance. While this maintenance is minimal, it is important for the moderator to be comfortable with the process of troubleshooting access points, and adjusting controls on the cloud controller. Some settings may need to be adjusted as the Wi-Fi zone continues and the moderator responds to public input. For example, most public Wi-Fi zones are set with speeds fast enough to easily access information online but not fast enough to compete with commercial subscriptions. Most towns also set up a fund to save for equipment replacements, advertising the zone, and / or expanding the zone if demand grows. Strategies for Maintaining the Cost of a Public Wi-Fi Zone The cost of an internet connection varies depending on the location, but for a business line, it is usually between $80 and $100 per month, or approximately $1,000 per year. Finding a way to pay for this has led to many varied solutions in communities. What follows are ideas for providing ongoing support to a public Wi-Fi zone: Add it to the Town Budget If residents view a Wi-Fi zones as an important part of improving a downtown district, they are often willing to budget for it. Find a Business Group to Sponsor It One of the benefits that comes with having a Wi-Fi zone is the ability to have a landing page that everyone who logs onto the zone will see. If you’ve ever logged onto a wireless connection at a hotel or in an airport, you know that after you agree to the terms and conditions, you end up at that hotel or airport’s website. In a town, you can be redirected to a site that shows the benefits of staying in town a little longer, showcasing local businesses. Because the Wi-Fi zone can benefit businesses in this direct way, groups of local businesses or a chamber of commerce often offer to cover the cost of the internet connection.

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Fund the Zone through Local Business Advertising Via a landing page, there is an opportunity for local businesses to advertise their services to people who they know are within walking distance of their location. For instance, logging onto the zone, a client is redirected to a page where she might see a coupon from a local restaurant offering a free appetizer if she shows the coupon at the restaurant. A business might be willing to pay $30 a month to sponsor such an ad, knowing that a potential customer who has seen that ad is close to the store. Put three ads like this on a landing page and the zone can pay for itself. Create the Zone with “Broadband Donations” from Local Businesses While it is recommended that a zone have one dedicated internet line used solely for the Wi-Fi zone, which guarantees a certain amount of bandwidth for the zone itself, it is possible to create a zone by “borrowing” internet from a number of local businesses’ connections. For instance, if a local coffee shop has free Wi-Fi, and a restaurant down the road does as well, each business can host a piece of equipment on their building, keep their own hotspot, and donate any leftover bandwidth to the public zone. The more pieces of equipment “injecting” internet into the zone, the stronger it becomes, because if one line goes down, chances are the others will stay up. Wi-Fi Zone Case Studies Springdale, AR: Leveraging Government Wi-Fi to Expand Service for Residents The city of Springdale, AR now offers free Wi-Fi service in city buildings and parks, an area that covers over 240 acres.125 An average of 1,200 park visitors connect to the Wi-Fi on a daily basis, and with little added expense to the city’s budget, the Wi-Fi project has been a success. Those hot spots scored the city a win as a 2014 Arkansas Business City of Distinction in the Technology Advancements category for cities with a population over 20,000.126

The idea got its start in 2012 as a concept to cut wasted time and resources at City Hall. Wi-Fi access was installed there to enable City Council members to carry mobile tablets into meetings instead of paper agendas that took hours to prepare, copy and distribute. While city employees used the Wi-Fi to access their internal applications and software, a guest version of the service was introduced for visitors wanting to connect to the Internet. The success of the network encouraged officials to expand Wi-Fi to other areas of the city.

The network has now expanded to include 16 city buildings, including the public library, animal services and all six fire stations, as well as five parks in the city. The city's Information and Technology Department was put in charge of the initial set-up, budgeting $2,800 for equipment and installation per location. The current monthly bill for the city per park location is $80, while municipal buildings leverage the city's existing network infrastructure.

The City utilizes two internet connections that are figured for failover and load balancing of internet traffic. One connections is 50 Mbps and the other is 24 Mbps. The network has policies in place to throttle individual guest devices from utilizing excessive bandwidth, as well. The service is also kept in check with

125 http://www.springdalear.gov/free_wifi.php 126 http://www.arkansasbusiness.com/supplements/8/city-of-distinction

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safeguards such as firewall protection to filter explicit websites. At the library, a library card number and password is required to access the free service. Prestonsburg, KY: Providing Connectivity to Underserved Residents Prestonsburg is a classic underserved community with population of less than 4,000 residents, nestled in the foothills of the Appalachians, and is in the process of transitioning its economy from coal mining to light industry and tourism. Prestonsburg’s Economic Director, with an $8,500 budget, partnered with Meraki, a provider of affordable “do it yourself” mesh networking solutions, to connect a 2-mile stretch through the town’s downtown core.127 Serving 6,000 users regularly, the community leveraged Wi-Fi as a competitive advantage when convincing new businesses to set up shop to the area.128 Boston, MA: Leveraging City-Owned Fiber Assets In 2014, Boston launched the “Wicked Free Wi- Fi” project.129 The first site was the neighborhood of Grove Hall because of its concentration of low-income communities and its lack of Wi-Fi. The network spans 1.5 miles and serves about 10,000 individual users per day.130 Designed to supplement mobile use, rather than replace in-home broadband, the project connects users to the Web via the city’s own high-speed fiber- optic network. Blacksburg, VA: Creating a Pilot Innovation Zone Blacksburg is home to a free gigabit Wi-Fi network that covers about 40% of the downtown area. Initial funding to install the fiber at two locations was modest – approximately $90,000 – and was collected through a crowdfunding campaign (including 181 individuals and nine corporate sponsors) started by TechPad, a local co-working and hacking community.131 The network went live in the fall of 2013 and was funded for an 18 month pilot.132 The organizers intend to use the first few years of the project to gauge local demand for faster speeds and, with that knowledge, to transition to a sustainable funding model. Seattle, WA: Turning Unused Spectrum into City Wi-Fi In spring of 2015, Seattle’s mayor announced a new free Wi-Fi network was being rolled out at the Seattle Center – the 74 acre hub of Seattle that once housed the 1962 World’s Fair and is perhaps best known as the home to the iconic Space Needle.133 The city is partnering with Microsoft to utilize TV White Space technology to create a large, powerful wireless network for citizen use – reportedly capable of serving 25,000 users at once.134

127 http://www.govtech.com/wireless/Mesh-Network-Creates-Low-Cost-Muni-Wi-Fi.html?topic=117699 128 https://meraki.cisco.com/lib/pdf/meraki_cs_prestonsburg_KY.pdf 129 http://www.cityofboston.gov/DoIT/wifi/ 130 https://www.bostonglobe.com/business/2014/04/08/boston-launches-wicked-free-network-starting-grove- hall/m3JI6hmWTCvQa8Ca4ZrLuK/story.html 131 https://www.tilt.com/campaigns/lets-bring-gigabit-internet-and-free-public-wifi-to-blacksburg/description 132 http://www.virginiabusiness.com/regions/article/free-gigabit-wi-fi-comes-to-downtown-blacksburg 133 http://www.geekwire.com/2015/microsoft-rolls-out-wi-fi-on-steroids-in-shadow-of-space-needle-seattle-center- gets-upgraded-free-network/ 134http://www.seattlecenter.com/microsoftwifi/

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IX. A DIGITALLY INCLUSIVE HOT SPRINGS

When the U.S. Department of Commerce first started measuring how many Americans used the internet in the 1990s, Larry Irving, then head of the Department’s National Telecommunications and Information Administration (NTIA), invoked the term “digital divide” to describe the internet’s “haves” and “have nots.” At a time when one in seven Americans used the internet, that binary notion of access shaped policy, and still does, to varying degree. Recent federal policy intervention has been to subsidize the infrastructure (i.e. provide fiber / cable lines or wireless service to underserved areas). In fact, of the $7.2 billion made available for broadband funding during the American Recovery and Reinvestment Act of 2009 (ARRA), over 90% was focused on providing infrastructure.

However, as the internet and broadband-enabled technologies become necessities for everyday American life, the digital divide has increasingly been defined in terms of the gap that exists between those that have the internet and know how to use it and those that don’t. Thus, rather than strictly being an issue of broadband supply, the digital divide can perhaps more accurately be described as an issue of demand. Indeed, a recent joint study by Mississippi State University, University of Texas, and Oklahoma State University suggests that, while the supply side focus is still important, significantly more attention should be given to inducing demand through educational and awareness efforts, which in turn, drives deployment.135

Digital inclusion, or efforts to bridge the digital divide, encompasses not only access to the internet, but also ensuring the availability of hardware and software; relevant content and services; and training for digital literacy skills required for effective use of information and communication technologies.136 The cost of digital exclusion is great. Without access, full participation in nearly every aspect of American society – from economic success and educational achievement, to positive health outcomes and civic engagement – is compromised. Who’s Offline? Multiple data sources exist for measuring household broadband adoption. In its 2015 Broadband Progress Report, the FCC reported that 62% of American’s subscribed to fixed broadband service at a basic speed of 3 Mbps download / 768 Kbps upload, a speed tier that has been used to measure broadband availability during ARRA programs.137 In 2014, the U.S. Census Bureau released data from the 2013 American Community Survey indicating that 73% of households report subscribing to home broadband service.138 The Pew Internet & American Life Project has investigated who in the U.S. are non-adopters and why since 2000. According to Pew, in 2013 70% of Americans had a broadband connection in their home.139 Most

135 http://www.sciencedirect.com/science/article/pii/S0740624X15000325 136 http://www.imls.gov/assets/1/AssetManager/BuildingDigitalCommunities_Framework.pdf 137 https://www.fcc.gov/reports/2015-broadband-progress-report ; Data is current as of Dec. 31, 2013. The FCC defines the adoption rate as the ratio of residential connections to fixed broadband service divided by the total number of household in the area with access to advertised broadband services. The FCC collects data about broadband connections from providers twice a year on Form 477, which this adoption data is based on. 138 http://www.census.gov/programs-surveys/acs/data/summary-file.html 139 http://www.pewinternet.org/2013/08/26/home-broadband-2013/

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literature are in agreement that three in ten Americans do not subscribe to a home broadband subscription, meaning that approximately 100 million Americans are offline.

Survey work has found overlap between people who do not adopt the internet in the home and other socioeconomic groups. Certain groups such as African Americans, people in poverty, people over the age of 65, and people with low educational attainment had lower than average home broadband adoption rates, according to the 2013 Broadband in the Home Report.140 In another 2013 survey, Pew investigated what they call “offline adults,” or adults who might know about the Internet, benefit from it, or even live in a household where it exists, but still opt not to use it. They found that 15% of American adults fall into this category. These people are often senior, they tend to make under $30,000 and they didn’t graduate from high school.141

Digital inclusion is not just about getting people on current broadband speeds – it’s an evolving problem that requires constant redefinition. It’s not just facilitating home adoption, but also having users reach a certain level of skill and fluency. For instance, if we see broadband adoption not just as binary (determined by the question, “Are they subscribed or not?”), but as also including a spectrum of comfort and skill, it becomes more complex and perhaps more relevant to the opportunity that local stakeholders and policymakers care about. For instance, should Hot Springs think about bridging the digital divide in terms of getting low-income neighborhoods online? Or is bridging the digital dive also about making sure that a low-income neighborhood has enough digital fluency to compete and thrive in the digital age? Within this framework, digital inclusion becomes less of an infrastructure issue, and more of an education and workforce priority.

According to a recent Digital Readiness Report conducted by John Horrigan, a co-author of the FCC’s National Broadband Plan, nearly one-third of Americans have trouble navigating the Internet – whether they have access to it or not.142 The concept of digital readiness implies that equity is not just about ensuring everyone is online, but about making sure everyone is online and capable – whatever “capable” might mean in 2015, 2020, or beyond. Digital readiness implies that the digital divide challenge might be ever evolving and ever-changing as new technologies are introduced and adopted by society.143

Academic studies, think tanks, nonprofits, and government agencies alike agree on the major barriers to household broadband adoption: relevance, cost, and digital literacy. Taking inventory of agreed upon obstacles to adoption in the literature leaves us with the following major categories:

Cost • "It's too expensive." Relevance • "I don't see why I need it." Skills • "I don't know how to use it." Access • "My house doesn't have access." Hardware • "I don't have a computer."

140 http://www.pewinternet.org/2013/08/26/home-broadband-2013/ 141 http://www.pewinternet.org/2013/09/25/whos-not-online-and-why/ 142 http://jbhorrigan.weebly.com/uploads/3/0/8/0/30809311/digital_readiness.horrigan.june2014.pdf 143 http://onlinelibrary.wiley.com/doi/10.1002/asi.23020/abstract

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These barriers commonly work together, creating complex, multi-layered obstacles to home adoption. In surveys, non-adopters usually cite two or three of barriers when they did not invest in a subscription.144 Most literature recommends several popular approaches to combating the digital divide. In 2013, the NTIA released the Broadband Adoption Toolkit, based on lessons learned from more than 200 federally-funded digital inclusion projects across the U.S., which recommended the following interventions:

Internet Subscription Subsidy Device Lending Programs Awareness or Campaigns Refurbishment

Public Home Digital Literacy Computer Broadband Training Access Adoption

Each type of approach addresses one or more of the common barriers to broadband adoption.

Public computing centers can address the skill barrier as well as cost Public Computer Access barriers associated with hardware and monthly at-home broadband subscriptions. These address the portion of the cost barrier associated with purchasing Hardware Programs hardware (a computer, tablet, etc.) These address the portion of the cost barrier associated with monthly Subsidy Programs access subscriptions. These address relevancy barriers that exist when people do not know Awareness Campaign how to derive personal value from the internet. These address the skill and relevancy barriers to broadband adoption. Depending on the target audience, the curricula could focus on basic Digital Literacy Training skills (e.g. keyboarding or using a mouse) or more advanced skills (e.g. evaluating online information or creating digital media).

It is important to note that these interventions are often used in combination. For example, the non-profit Connect Ohio combined bi-lingual public awareness campaigns, discounted broadband subscriptions, and free digital literacy training at community centers to increase home broadband adoption across Ohio.145

144 http://transition.fcc.gov/DiversityFAC/032410/consumer-survey-horrigan.pdf 145 http://connectohio.org/every-citizen-online

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Arkansas Broadband Adoption Federal data sources agree that overall, broadband adoption is lagging in Arkansas. U.S. Census Bureau data from 2013, released in late 2014, indicate that while 73% of American households report subscribing to broadband internet, only 60% of Arkansans do.146 Similarly, in its 2015 Broadband Progress Report, the FCC reported that 62% of American’s subscribed to fixed broadband service at a basic speed of 3 Mbps download / 768 Kbps upload.147 In comparison, the report found that only 38% of Arkansas households subscribed to service at this speed. As speeds increase, Arkansas adoption rates decrease significantly.

Adoption Rate – 2013 U.S. Census FCC: 3 Mbps/ FCC: 10 Mbps / FCC: 25 Mbps/ 3

“Broadband Internet” 768 kbps 768 Kbps Mbps United States 73% 62% 52% 29% Arkansas 60% 38% 29% 25%

In 2014, however, Connect Arkansas reported that 80% of Arkansas residents used the internet, and 62% of households subscribed to broadband in their home. This is perhaps reflective of Connect Arkansas defining broadband as a service provide > 768 Kbps download speed, which was the definition when Connect Arkansas was formed. The 2014 Connect Arkansas Broadband Survey indicated severe gaps in broadband adoption by education, age, income, race, and disability.148

Chart IX.1 - Arkansas Broadband Adoption 70% 62% 60% 50% 52% 50% 46%

40% 37% 28% 30%

20%

10%

0% State Average No HS Degree Age 65+ Income < $25k African Disabled American

146 http://www.census.gov/history/pdf/2013computeruse.pdf 147 https://www.fcc.gov/reports/2015-broadband-progress-report ; Data is current as of Dec. 31, 2013. The FCC defines the adoption rate as the ratio of residential connections to fixed broadband service divided by the total number of household in the area with access to advertised broadband services. The FCC collects data about broadband connections from providers twice a year on Form 477, which this adoption data is based on. 148 http://stc.arkansas.gov/Documents/Reduced-Broadband%20Manager's%20Activities- Operations%20Report%20(PE%2012.31.pdf

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The 2014 Connect Arkansas Broadband Survey also identified barriers to broadband among non-adopters. The top barrier reported was relevance, with 44% of respondents indicating that they believed that the internet was “waste of time” or that they were too busy and didn’t need or want broadband service at home. A distance second place, 24% of non-adopters reported that price was the main barrier to broadband adoption, either finding that a subscription would be too expensive, or indicating that they did not have a computer. Additionally, 21% reported a lack of digital literacy or usability as a barrier, indicating that they found the internet difficult to use, that they were “too old” or physically unable to use the internet, or that they were worried about a virus or spyware. Finally, only 11% of non-adopters indicated that their main barrier to a home broadband subscription was the availability of broadband internet service.

Chart IX.2 - Barriers to Broadband Adoption

Relevance (Not interested, waste of time, too 44.0% busy, don't need or want it)

Price (Too expensive or don't have a 24.0% computer)

Usability (Difficult or frustrating, too old, don't know how, physically unable, worried 21.0% about virus or spyware)

Availability / Access 11.0%

0% 10% 20% 30% 40% 50% Hot Springs Broadband Adoption According to the U.S. Census Bureau’s 2013 American Community Survey data, 64% of Garland County households report subscribing to a home broadband connection, compared to 60% at the state level.149 Since the U.S. Census Bureau just began measuring home broadband adoption, trends data showing change over time are not yet available.

U.S. Census Bureau – 2013 American Community Survey Has a computer Has a computer Has a computer, No computer & broadband & dial-up no internet Arkansas 60% 1% 16% 22% Garland County 64% 2% 14% 20%

149 http://www.census.gov/history/pdf/2013computeruse.pdf

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Starting a Broadband Adoption Program As more services and information migrate to online-only formats, the human and social costs of not being online are amplified, reinforcing existing patterns of isolation and disadvantage. Increasing adoption and utilization of broadband in Hot Springs is essential for community development, and in order to create demand for investment in ubiquitous high-speed broadband service. Building a digitally inclusive community requires multiple strategies, collaborations, and creativity.

Through the Broadband Technology Opportunities Program (BTOP), NTIA awarded nearly half a billion dollars in grants to improve public computer centers and increase broadband adoption. Each project was designed to meet local needs, engage specific audiences and demographic groups, and demonstrate the power of being connected. In 2013, NTIA released a Broadband Adoption Toolkit based on the field-tested practices of recipients from the Sustainable Broadband Adoption and Public Computer Center grant categories of BTOP.150 The Toolkit is a guide to planning and carrying out effective adoption programs with a wide variety of audiences, including youth, low-income, and seniors.

The following guidelines for developing community broadband adoptions are adopted from the NTIA”s Broadband Adoption Toolkit. It follows four core steps:

1. Needs Assessment: Form a clear understanding of the needs and opportunities in the community – and how broadband can address them. 2. Stakeholder Engagement: Identify and engage a wide range of stakeholders in the program. 3. Program Planning: Develop an implementation plan that includes specific, measureable, achievable goals, and aim high. 4. Continuous Improvement: implement a continuous cycle of reflection, data collection, and program improvement.

“Begin with the end in mind” is one of the seven habits of highly effective people, from Stephen R. Covey’s 151 book of the same name. The ultimate goal, or “end state,” of a broadband adoption program is defined by the positive change it will make in the social, economic, or cultural life of Hot Springs. Because broadband adoption is fundamental to success in many areas of modern life, the end state may be related to education, healthcare, employment, civic participation, or many other domains. Describing a clear end state at the outset of a new program can help ensure that activities generate the expected benefits. Step 1: Understand Community Needs and Opportunities All communities have both assets and needs. A successful program uses the community’s assets effectively to meet its needs. Examples of a Hot Springs’ assets are its organizations, physical spaces, people, institutions, and culture. Community needs include economic sustainability, a clean environment, education, public safety, shelter, and healthcare. A broadband adoption program can leverage many different kinds of community assets and address a broad array of needs, but it must be guided by a clear and specific answer to the question, “What problem are we trying to solve?” The first step in this process is gathering information.

150 http://www2.ntia.doc.gov/files/toolkit_042913.pdf 151 https://www.stephencovey.com/7habits/7habits-habit2.php

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To assist in “mapping” or inventorying the community assets and assessing its needs, a program designer should:

 Gather general information about the community: What is the demographic make-up of the community? What languages are spoken? What resources or assets are already in place?  Identify existing community problems or needs: These may be community-wide or related to a specific audience or neighborhood.  Collect broadband adoption information about the community: Who is online, and who isn’t? How are community members accessing the Internet (e.g., home subscriptions, public computer centers, mobile devices)? What are popular online activities?  Identify existing broadband adoption and digital literacy programs: What community institutions offer these programs? Do they target specific community members (e.g., youth, seniors, immigrants)? Is anyone else working on this issue?

Use the findings of the community assessment to focus program goals. For example, perhaps a larger community goal is to help seniors manage their health. The community has a substantial senior population, and many of them do not use the Internet. The community assessment may show that a local nonprofit provides computer training for the general public, but there is a lack of programming targeting seniors or providing information about online health resources. Step 2: Identify and Engage Stakeholders Identifying and getting to know relevant stakeholders is critical to the success of broadband adoption programs. Anyone can be a stakeholder. At this stage, it is critical to gather as much information as possible about the people and organizations that could be affected by or interested in the program and the problem it aims to solve. Three important stakeholder groups are program beneficiaries, potential partners, and community influencers.

Program Beneficiaries: These are the individuals and organizations that could benefit from the program. For instance, seniors could improve their health, and local government could benefit from cost savings on healthcare.

 What individuals or groups of individuals could benefit, and in what ways? o What are their needs and goals? o What are their attitudes toward using computers and the Internet? o What skills do they have, and what skills do they need? o What are their trusted information sources?

 What organizations could benefit, and how? o Local government o Healthcare providers o Social service providers o Senior centers o Businesses

Potential Partners: These include non-profits, public institutions (e.g., schools and libraries), the business community, civic groups, and others who can contribute to the program.

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 How is the project aligned with their missions?  How can they participate (e.g., funding, contributions of facilities or staff time, publicity, etc.)?  Are there opportunities to combine resources?  How could they promote the program to their constituents?  How can their expertise help the program provide better quality services?

Community Influencers: Local government, media groups, faith-based organizations, and other community leaders can provide insight into community needs and facilitate connections with community members.

 How could these influencers be informed about the program?  What support can they provide to the program?

Information from stakeholders can help to describe community needs and preferences, and shape the direction of the program. For example, a needs assessment may find that seniors are a bit fearful of trying new technology, but they would like skills to better manage their health. It may also find that senior centers or senior living complexes would be willing to host training events for their constituents and would welcome involvement in the program.

Stakeholder input should be gathered throughout the life of the program, not just during the planning stage. Each step of the way, stakeholders should be asked for their feedback—making the wrong assumptions about what they want can hurt the success of the program. Listen and be ready to act on the feedback to improve the quality and the impact of the program. The NTIA also produced a Stakeholder Outreach and Sustainability Toolkit, which includes strategies for mapping a network of possible stakeholders and including them in program planning and implementation.152 Step 3: Create an Implementation Plan The previous two steps focus on gathering information about community needs, assets, and stakeholders. Programs can use this information to formulate an opportunity statement, which identifies the target audience for the program, their needs, and the benefit or impact the program is trying to achieve. The opportunity statement should be specific and tailored to the community based on the research and analysis performed. Using a previous example, an opportunity statement could be: “Seniors need basic digital literacy skills so they can use the Internet to better manage their health.”

Whoever the audience, in order to engage your residents in a broadband adoption program, they need to connect their activities to immediate personal goals or needs. Put simply, the message is not “learn to use a computer” but “learn how to connect to your doctor and get health information online.” Individuals may want to earn a GED, find a better job, communicate with friends and family, or access news and entertainment. Digital literacy skills are a tool to accomplish those goals; they are not an end unto themselves. While developing and implementing the adoption program, keep in mind the needs of the individuals that the program is serving.

Once the opportunity is defined, a program can build out the goals and activities.

 Set specific, measurable, achievable goals. For example, “We will teach 100 seniors how to find health information on the Internet by the end of the year.”

152 http://www2.ntia.doc.gov/files/btop_tookit_2_122110_final.pdf

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 Identify the activities, or tactics, the program will use to achieve this goal. Most successful broadband adoption programs have used a combination of outreach and training activities. Some also provided computers or home broadband subscriptions, or have developed specialized training curricula for their target audience.  Consider the barriers to adoption faced by the target population. Draw on the community assessment to make sure that the program responds to the needs of the target population, and take into consideration their ability to access the Internet, current attitudes about technology, skill levels, and the personal goals that technology can help them achieve.  Assess the resources needed to implement activities (staff, time, funding). Select activities that will help make the greatest impact with the program’s resources.  Consider partnerships or other relationships that could increase the resources available for the program.  Determine how to collect information that will demonstrate the impact of the program. This topic will be explored in greater depth below, but aim to build these information-gathering tasks into the implementation plans.  Create a plan. This is where “the rubber meets the road” and staff begin to implement program activities. Identify steps to take, staff or volunteers to perform those steps, and timeframes for completing them. Step 4: Continually Improve the Program Program development does not end when the program is launched. It is natural for programs to evolve as community needs change, new opportunities arise, and lessons are learned about which activities or tactics are most effective. A key requirement for continuous improvement is evaluation—building in processes to collect information about successes and challenges, and planning time to reflect on how the program can improve.

 Identify what information the program should collect to demonstrate impact. Using the example of providing training to seniors, a program may want to collect information on outputs, outcomes, and impacts.  Consider how to collect this information. Many broadband adoption programs have used surveys, interviews, and focus groups, among other methods, to collect information.  Collect information from the target audience on how the program is benefiting their lives. Stakeholders, partners, and other community leaders can also provide insight into changes they are observing that could be attributable to the program.  Identify specific times when the program will collect feedback. For example, trainers may give training participants a short survey directly following a class, or the program may hold focus groups every six months.  Consider how to share the collected information with key stakeholders. For example, a program may wish to approach local media to do a story on the program, give a presentation at a meeting of local government to build support for the work, or report on progress made to an entity that helps fund program activities. Build in a regular time to review what program organizers are learning with staff and stakeholders.  Adapt the program to increase impact. Don’t consider the program a failure if an activity or tactic did not work as well as hoped. Speak with stakeholders, revisit the needs of the community, and

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try another approach that may resonate more with the target audience. Also keep in mind that change will not come instantly—give the program a chance to take root, and celebrate even small successes.

By using the four steps outlined by the NTIA, Hot Springs could be on the path to developing a broadband adoption program that responds to community needs, and improves and adapts over time. With stakeholder support and demonstrated benefits, the program would be positioned to serve community members for years to come.

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X. FUNDING OPPORTUNITIES

Several federal funding sources exist for the development of community broadband initiatives. The following list should be continuously updated as funding sources transition and evolve. TPMA can assist in identifying existing and future funding sources, recommending initiatives that should be targeted given community goals, and providing guidance for writing competitive grants. 1. U.S. Department of Agriculture Rural Development USDA Rural Development is committed to helping improve the economy and quality of life in America. Through their programs, Rural Development touches upon each aspect of rural America in a precise and organized manner.

The financial programs support such essential public facilities and services as water and sewer systems, housing, health clinics, emergency service facilities and electric and telephone. Rural Development has continuously promoted economic development by supporting loans to businesses through banks, credit unions and community-managed lending pools. They offer technical assistance and information to help agricultural producers and cooperatives get started and improve the effectiveness of their operations. Additionally, they have provided technical assistance to help communities undertake empowerment programs.

USDA Rural Development has a multi-billion dollar portfolio of loans and will administer billions in loans, loan guarantees, and grants through their programs in the current fiscal year. To achieve their mission, Rural Development assists rural individuals, communities and businesses obtain the financial and technical assistance needed to address their diverse and unique needs through their specific programs. 1) Community Connect Broadband Grants Program Provides community access to broadband services in unserved areas through a one-time grant to such organizations as tribes, cooperatives, private companies, and universities, and uses the infrastructure built by the grant to create opportunities for continued improvement. Additional Information: The funding will support construction, acquisition, or lease of facilities, including spectrum, to deploy broadband transmission services to all critical community facilities and to offer such service to all residential and business customers located within the proposed service area.

The funding can be put towards the improvement, expansion, construction, acquisition, or leasing of a community center that furnishes free access to broadband Internet service, provided that the community center is open and accessible to area residents before, during, and after normal working hours and on Saturday or Sunday. All equipment purchased with grant and/or matching funds must be new or non- depreciated. Eligibility: Applicants must be organized as an incorporated organization, an Indian tribe or tribal organization, a state or local unit of government, or other legal entity, including cooperatives or private corporations or limited liability companies organized on a for profit or not-for profit basis.

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The project must deploy Basic Broadband Transmission Service, free of all charges for at least 2 years, to all Critical Community Facilities located within the proposed Service Area. Additionally, it should offer Basic Broadband Transmission Service to residential and business customers within the proposed Service Area. Contact Information:  Kenneth Kuchno Telephone: (202) 690-4673 Email: [email protected]. Website: http://www.rd.usda.gov/programs-services/community-connect-grants 2) Distance Learning and Telemedicine Loans and Grants Program Provides loans and grants to rural community facilities (e.g., schools, libraries, hospitals, and tribal organizations) for advanced telecommunications systems that can provide health care and educational benefits to rural areas. Additional Information: The DLT Program provides three kinds of financial assistance; a full grant, grant-loan combination, and a full loan. Eligibility: To be eligible for a grant, your organization must: 1. Currently deliver or propose to deliver distance learning or telemedicine services for the term of the grant. To receive a grant, the purposes must meet the grant definition of distance learning and telemedicine. The DLT program is focused on sustainability. Planning studies, research projects, and short-term demonstration projects of less than two years will not be considered. 2. Be legally organized as an incorporated organization or partnership; an Indian tribe or tribal organization; a state or local unit of government; a consortium; or other legal entity, including a private corporation organized on a for profit or not-for profit basis with the legal capacity to contract with the United States Government. 3. Operate a rural community facility or deliver distance learning or telemedicine services to entities that operate a rural community facility or to residents of rural areas at rates calculated to ensure that the benefit of the financial assistance passes through to such entities or to residents of rural areas.

Contact Information:

 Email: [email protected] Website: http://www.rurdev.usda.gov/UTP_DLT.html 2. Federal Communications Commission The Federal Communications Commission (FCC) is an independent United States government agency. The FCC was established by the Communications Act of 1934 and is charged with regulating interstate and international communications by radio, television, wire, satellite and cable. The FCC's jurisdiction covers the 50 states, the District of Columbia, and U.S. possessions.

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The Commission staff is organized by function. There are seven operating Bureaus and ten Staff Offices. The Bureaus’ responsibilities include: processing applications for licenses and other filings; analyzing complaints; conducting investigations; developing and implementing regulatory programs; and taking part in hearings. Our Offices provide support services. Even though the Bureaus and Offices have their individual functions, they regularly join forces and share expertise in addressing Commission issues. Through these offices, funding is specifically designed to meet the needs of each applicant.

Universal Service Fund

In accordance with the Telecommunications Act of 1996, the FCC established the following four programs within the Universal Service Fund, of which the Connect America Fund, Schools and Libraries and Rural Health Care Programs are focused on expanding accessible, affordable, high-speed broadband service:

 Connect America Fund (formally known as High-Cost Support) for rural areas  Lifeline (for low-income consumers)  Schools and Libraries (E-rate)  Rural Health Care 1) Connect America Fund/Universal Service High Cost Program Provides funding to eligible telecommunications carriers to help pay for telecommunications services in high-cost, rural, and insular areas so that prices charged to customers are reasonably comparable across all regions of the nation. Additional Information: The goal of Universal Service is to promote the availability of quality services at just, reasonable and affordable rates for all consumers. The program will advance the availability of such services to all consumers, including those in low income, rural, insular, and high cost areas at rates that are reasonably comparable to those charged in urban areas

Eligibility:

Wireline and wireless telephone companies seeking to participate in any of the High Cost Program support components must be designated as eligible telecommunications carriers (ETCs) and meet ongoing requirements for each component. Contact:  Website: http://www.fcc.gov/wcb/tapd/universal_service/highcost.html, http://www.fcc.gov/wcb/tapd/universal_service/ or http://www.universalservice.org/hc/ 2) Universal Service Schools and Libraries Program Provides discounts for affordable telecommunications and Internet access services to ensure that schools and libraries have access to affordable telecommunications and information services.

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Additional Information: This program is also known as “E-Rate” and is administered by the Universal Service Administrative Company (USAC) under the direction of the Federal Communications Commission (FCC), and connects the nation's schools and libraries to broadband. When E-rate was established in 1996, only 14 percent of the nation's K-12 classrooms had access to the Internet. Today, virtually all schools and libraries have Internet access. The FCC began updating E-rate in 2010 and in July 2014, released the E-rate Modernization Order expanding Wi-Fi networks in schools and libraries across America while ensuring support continues to be available for broadband connectivity to schools and libraries.

Eligibility:

To be eligible:

1. Schools must provide elementary or secondary education as determined under state law. 2. Schools may be public or private institutional day or residential schools, or public charter schools. 3. Schools must operate as non-profit businesses. 4. Schools cannot have an endowment exceeding $50 million. 5. Libraries must be eligible for assistance from a state library administrative agency under that Act. 6. Libraries must have budgets completely separate from any schools (including, but not limited to, elementary and secondary schools, colleges and universities). 7. Libraries cannot operate as for-profit businesses. Contact:  Telephone: 1-800-229-5476 http://www.universalservice.org/sl/ 3) Rural Health Care Program The Rural Health Care Program, which includes the new Healthcare Connect Fund, provides funding to eligible health care providers (HCPs) for telecommunications and broadband services necessary for the provision of health care. The goal of the program is to improve the quality of health care available to patients in rural communities by ensuring that eligible HCPs have access to telecommunications and broadband services. Funding for the Rural Health Care Program is capped at $400 million annually. Additional Information: The Rural Health Care Program of the Universal Service Fund makes discounts available to eligible rural health care providers for telecommunication services and monthly Internet service charges. The program is intended to ensure that rural health care providers pay no more for telecommunications in the provision of health care services than their urban counterparts. The Rural Health Care Program is currently made up of four programs: the Healthcare Connect Fund, the Telecommunications Program, the Internet Access Program, and the Rural Health Care Pilot Program.

The Rural Health Care Program reimburses telecommunications and Internet service providers for services provided to rural health care providers. While health care providers apply for these discounts, USAC works in conjunction with service providers to make sure these discounts are passed on to program participants.

Eligibility:

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Eligible organizations include:

 Post-secondary educational institutions offering health care instruction, teaching hospitals, or medical schools  Community health centers or health centers providing health care to migrants  Local health departments or agencies including dedicated emergency departments of rural for- profit hospitals  Community mental health centers  Not-for-profit hospitals  Rural health clinics including mobile clinics  Consortia of HCPs consisting of one or more of the above entities  Part-time eligible entities located in otherwise ineligible facilities

Contact:

 Telephone: 1-800-229-5476 http://transition.fcc.gov/wcb/tapd/ruralhealth/ or http://www.usac.org/rhc/ 3. U.S. Economic Development Administration The Economic Development Administration (EDA) was established under the Public Works and Economic Development Act of 1965 (42 U.S.C. § 3121), as amended, to generate jobs, help retain existing jobs, and stimulate industrial and commercial growth in economically distressed areas of the United States. EDA assistance is available to rural and urban areas of the Nation experiencing high unemployment, low income, or other severe economic distress.

In fulfilling its mission, EDA is guided by the basic principle that distressed communities must be empowered to develop and implement their own economic development and revitalization strategies. EDA helps distressed communities address problems associated with long-term economic distress, as well as sudden and severe economic dislocations including recovering from the economic impacts of natural disasters, the closure of military installations and other Federal facilities, changing trade patterns, and the depletion of natural resources. 1) Economic Development Facilities and Public Works Provides funding for construction of infrastructure in areas that are not attractive to private investment. Most funding is for water and sewer infrastructure but some has been designated for communications projects. Additional Information: Public Works and Economic Development investments help support the construction or rehabilitation of essential public infrastructure and facilities necessary to generate or retain private sector jobs and investments, attract private sector capital, and promote regional competitiveness, including investments that expand and upgrade infrastructure to attract new industry, support technology-led development, redevelop Brownfield sites and provide eco-industrial development.

Eligibility:

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An Eligible Applicant that is a non-profit organization must include in its application for Investment Assistance a resolution passed by (or a letter signed by) an authorized representative of a general purpose political subdivision of a State, acknowledging that it is acting in cooperation with officials of such political subdivision. Contact:  Austin Regional Office (covers Arkansas) Matthew Giannini Austin Regional Office 903 San Jacinto, Ste. 206 Austin, TX 78701 P: 512-516-1878 E: [email protected] 4. U.S. Department of Housing and Urban Development 1) Choice Neighborhood Implementation Grants Helps communities transform neighborhoods by revitalizing severely distressed public and/or assisted housing. Grantees may use funds to provide unit-based broadband Internet connectivity. Additional Information: The Choice Neighborhoods program is designed to catalyze critical improvements in neighborhood assets, including vacant property, housing, services, and schools. The program requires proposals with a comprehensive neighborhood revitalization strategy that involves local leaders, residents, schools, authorities, business owners, nonprofits, and private developers. Eligibility: The following entities are eligible to apply:

 County governments  City or township governments  Public housing authorities/Indian housing authorities  Native American tribal organizations (other than Federally recognized tribal governments)  Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education  Nonprofits without 501(c)(3) status with the IRS, other than institutions of higher education Contact:  Email: [email protected] Phone: (202) 708-0667  http://www.hud.gov/cn/

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XI. RELEVANT ARKANSAS INITIATIVES Connect Arkansas Connect Arkansas, a project of the Arkansas Capital Corporation Group (ACCG), is a private, nonprofit corporation dedicated to increasing high-speed Internet subscription and improving and sustaining Internet adoption throughout Arkansas. The Connect Arkansas Broadband Act was signed into law by Arkansas Governor Mike Beebe on March 28, 2007, with the goal of improving personal lives and creating economic opportunity for Arkansans. Connect Arkansas seeks to advance that goal through community-based initiatives. Act 604 of 2007 states that Connect Arkansas’s mission is to “prepare the people and businesses of Arkansas to secure the economic, educational, health, social, and other benefits available via broadband use.”

Connect Arkansas was supported by two federal American Recovery and Reinvestment Act (ARRA) grants, several grants from other sources and most recently two state grants through the Arkansas Science and Technology Authority and the Arkansas Economic Development Commission. Connect did not receive funding in the 2015 legislative session and will be closing operations effective June 30, 2015. Arkansas Broadband Advisory Council The Council monitors broadband development efforts of other states and countries as well as the progress of the Connect Arkansas initiative. The Council also advises the governor and legislature on policies related to connecting all Arkansas homes to affordable broadband.

Website: http://www.broadbandadvisorycouncil.arkansas.gov/ UAMS Center for Distance Health and Arkansas e-Link Arkansas eLink is led by the University of Arkansas for Medical Sciences and partners with Arkansas Telehealth Oversight & Management (ATOM) and the Arkansas Research & Education Optical Network (ARE-ON) in creating better access for hospitals, medical/behavioral health clinics, public health units, two- year colleges, libraries and public safety entities, while also reaching underserved citizens.

The UAMS Center for Distance Health continues to work with facilities around the state. Since the completion of the Broadband Technologies Opportunity Program grant, we have been working with each eligible site to sign them up for broadband assistance through the FCC Health Care Connect Fund, creating the Arkansas e-Link Consortium. As a member of the consortium and a participant in the Health Care Connect Fund, sites receive financial assistance for broadband connectivity and/or network equipment costs. Currently, there are 416 member sites that participate in the Arkansas e- Link Consortium. Since December 1, 2014, 28 new sites have been added to the network bringing Arkansas’ total to 439. From December 1, 2014– May 1, 2015 the eLink Network has facilitated over 75,000 hours of video calls with over 98,000 individual calls being placed on the network for clinical and educational activities.153

Website: http://www.arkansaselink.com & http://cdh.uams.edu/

153 http://www.stc.arkansas.gov/Documents/Broadband%20Manager's%20Activities-Operations%20Report.pdf

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Arkansas Research Education Optical Network (ARE-ON) The Arkansas Research and Education Optical Network (ARE-ON) organization and its members comprise a community of thought leaders focused on collaborative learning and innovation through advanced networking, technology, and research in Arkansas. ARE-ON is a not-for-profit consortium of all public degree-granting institutions in Arkansas and other selected higher education organizations.

Website: https://www.areon.net/ Arkansas Public School Computer Network (APSCN-Department of Information Systems) The Arkansas Public School Computer Network (APSCN) is the statewide computer network linking the administrative functions (financial and student data) and digital learning tools of Arkansas public school districts to a central computer in Little Rock.

Website: http://www.apscn.org/ FirstNet FirstNet will provide emergency responders with the first nationwide, high-speed network dedicated to public safety. FirstNet will be a force multiplier, increasing collaboration to help emergency responders save more lives, solve more crimes and keep our communities safer.

The broadband data network fulfills a fundamental need of the public safety community and a key recommendation of the 9/11 Commission. Creating FirstNet will require an unprecedented level of public-private partnership, collaboration and shared commitment to the well-being of all Americans.

In March 2015, the U.S. Commerce Department’s National Telecommunications and Information Administration (NTIA) announced it will be releasing the second phase of previously-awarded grant funding for states and territories to begin collecting data necessary to plan for the nationwide public safety broadband network being developed by the First Responder Network Authority (FirstNet).

Arkansas will utilize its existing Arkansas Interoperable Communications Committee (AICC), Arkansas Interoperable Communications Executive Committee (AICEC), and the recently established Arkansas Public Safety Broadband Network (APSBN) Working Group to implement the State and Local Implementation Grant Program (SLIGP). The State plans to update its Statewide Communication Interoperability Plan as part of the program, and will use the AICC, APSBN Working Group, and Rural Leadership Council as primary vehicles for education and outreach to local jurisdictions.154

Website: http://www.awin.arkansas.gov/leadership/Pages/default.aspx

154 http://www.stc.arkansas.gov/Documents/Broadband%20Manager's%20Activities-Operations%20Report.pdf

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Appendix A: Glossary and Related Case Studies and Tools

APSCN – Arkansas Public School Computer Network (APSCN) is managed by the Arkansas Department of Information Systems and links all Arkansas public schools with the Arkansas Department of Education (ADE) as required by Act 4 of 1992. APSCN ensures public schools can file electronic reports that provide state and local decision makers accurate, timely and comprehensive information.

ARE-ON – The Arkansas Research and Education Optical Network (ARE-ON) is a not-for-profit consortium that includes all public degree-granting institutions in Arkansas and other selected higher education organizations. ARE-ON provides a high-speed fiber optic backbone network throughout the state with 1Gb and 10Gb Ethernet connections to its members, affiliates, national research and education networks, regional optical networks, and commercial service providers.

AWIN – The Arkansas Wireless Information Network (AWIN) is a statewide, interoperable, wireless communication system for first responders and Arkansas public service entities. AWIN is a multiple site, trunked communication system based on a digital 700/800 MHz system using the Association of Public Safety Communication Officials (APCO) Project 25 standard.

Backbone – Main infrastructure of an Internet provider's network, sometimes referred to as the "core" backbone of a network.

Backhaul – The intermediate link between a local area network or point of demarcation and backbone or interconnection point that provides access to the Internet.

Bandwidth – The amount of data that can be sent in a time period, a measure of the size or capacity of a connection. Measured in Mbps: Megabits per second, one million bits per second or Gbps: Gigabits per second, one thousand megabits per second.

Broadband – Uses analog signals to divide fiber-optic cable into several channels with each channel at its own frequency. Broadband has become synonymous with high-speed Internet connectivity over time.

Broadband Adoption – The decision to subscribe to broadband internet services in the home.

BTOP – The Broadband Technologies Opportunity Program (BTOP) is administered by the Department of Commerce's National Telecommunications and Information Administration (NTIA). Totaling $4.7 billion, BTOP provides grants to support the deployment of broadband infrastructure in un-served and underserved areas, to enhance broadband capacity at public computer centers, and to encourage sustainable adoption of broadband service.

CIV Network – The Compressed Interactive Video (CIV) network is managed by the Arkansas Department of Education Distance Learning Center (ADE DLC) and allows teachers and students to see and speak to each other in real time. Currently, 235 out of 238 school districts have CIV systems connected to the state video network.

CLEC – Competitive Local Exchange Carrier is a wireline provider that is authorized under state and Federal Rules to compete with ILEXs to provide local telephone services in one of three ways or a combination thereof: 1) by building or rebuilding telecommunications facilities of their own, 2) by leasing capacity from another local telephone company (typically an ILEC) and reselling it, and 3) by leasing discrete parts of the ILEC network referred to as UNEs.

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Collocation Facility – Form of data center where network providers locate network, server and storage equipment and interconnect to a variety of other network service providers.

Conduit – Tube or duct for enclosing electric wires or fiber-optic cable, typically used in underground fiber- optic construction.

Dark Fiber – A fiber strand that is not being used by any entity and carries no Internet traffic, i.e. fiber that is not "lit" by equipment transmitting data via light.

Digital Divide – The gap that exists between those that have the internet and know how to use it and those that don’t.

Digital Inclusion – The goal of decreasing or eliminating the digital divide.

Digital Learning – Digital learning is any instructional practice that effectively uses technology to strengthen the student learning experience. Digital learning encompasses a wide spectrum of tools and practices, including online and formative assessments, increased focus and quality of teaching resources, online content and courses, applications of technology in classrooms and school buildings, adaptive software for students with special needs, etc.

Digital Literacy – The ability to use information and communication technologies to find, evaluate, create and communicate information; it requires both technical and cognitive skills.

Distance Learning – Education that takes place via electronic media linking instructors and students who are not together in a classroom. Students can work on their own in any off-campus location and communicate with faculty and other students via e-mail, electronic forums, videoconferencing, chat rooms, bulletin boards, instant messaging or other form of computer-based communication.

DSL – Digital Subscriber Line. DSL uses standard telephone lines to deliver high-speed Internet to homes and businesses. e-Link – The University of Arkansas for Medical Sciences (UAMS) is developing broadband infrastructure to serve community institutions across Arkansas. Arkansas e-Link will expand, integrate, and enhance the capabilities of two existing community-serving networks: the Arkansas Telehealth Network as overseen by Arkansas Telehealth Oversight & Management (ATOM) and the Arkansas Research and Education Optical Network (ARE-ON).

E-Rate - A Federal program that provides subsidy for voice and data circuits as well as internal network connections to qualified schools and libraries. The subsidy is based on a percentage designated by the FCC.

FCC – Federal Communications Commission is a Federal regulatory agency that is responsible for regulating interstate and international communications by radio, television, wire, satellite and cable in all 50 states, the District of Columbia, and U.S. territories.

Fiber (Fiber Strand) – Optical fiber is made of flexible glass that can support very high data transfer rates. An individual glass fiber, roughly the thickness of a human hair, is capable of carrying a distinct signal transmitted in the form of pulses of light. A single strand of fiber is capable of transmitting over a million simultaneous telephone calls, or nearly 80 gigabits of digital information per second (80,000,000,000 pulses of light per second), using current telecommunications equipment.

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Fiber Optic Cable - A cable containing a bundle of fiber strands.

Fiber Optics – Optical fiber (or "fiber optic") refers to the medium and the technology associated with the transmission of information as light pulses along a glass or plastic strand or fiber. Optical fiber carries much more information than conventional copper wire and is in general not subject to electromagnetic interference and the need to retransmit signals. The capacity is limited only by the equipment on each end of the fiber. Half of the 2009 Nobel Prize in Physics was awarded to Charles K. Kao, who pioneered the use of fiber optics.

FTTN – Fiber to the Neighborhood is a hybrid network architecture involving optical fiber from the carrier network, terminating in a neighborhood cabinet with converts the signal from optical to electrical.

FTTP – Fiber to the Premise is a fiber-optic system that connects directly from the carrier network to the user premises.

Gbps – Gigabits per second, one thousand megabits per second. 1,000,000,000 bits per second. REACH- 3MC will create a backbone with a 10 Gbps core backbone and 1 Gbps laterals.

Gigabit – Gigabit internet speeds are roughly 100x the average download speeds that most Americans have (10 Mbps).

ILEC – Incumbent Local Exchange Carrier is the traditional wireline telephone service providers within defined geographic areas. Prior to 1996, ILECs operated as monopolies having exclusive right and responsibility for providing local and local toll telephone service within LATAs.

Interconnection – The linkage, by wire, radio, satellite or other means, of two or more existing telecommunications carriers or operators with one another for the purpose of allowing or enabling the subscribers of one carrier or operator to access or reach the subscribers of the other carriers or operators. Networks feature Interconnection Points with other networks, including Tier 1 Internet providers that allow users to access websites all over the world.

ISP – An Internet Service Provider (ISP) provides access to the Internet for end-users. ISPs operate networks that connect end-users to the Tier 1 Internet, allowing them to access resources worldwide. ISPs function as on-ramps to the Internet.

LAN– A Local Area Network (LAN) is connects network devices over a relatively short distance. A networked office building, school, or home usually contains a single LAN, though sometimes one building will contain a few small LANs (perhaps one per room), and occasionally a LAN will span a group of nearby buildings. In addition to operating in a limited space, LANs are also typically owned, controlled, and managed by a single person or organization. They also tend to use certain connectivity technologies, primarily Ethernet and Token Ring.

Last Mile – The connection between a customer and telephone or cable company or Internet Service Provider (ISP). Last Mile providers serve end-users via direct connections to homes and businesses. The ARRA Broadband Stimulus has designated two categories of infrastructure: Last Mile and Middle Mile.

Make-Ready – Everything that needs to be done to make a facility ready to receive the fiber-optic cable or similar preparations necessary to build fiber along a given route. This could include: permitting, masonry, electrical work, moving existing cabling to make room for new attachments.

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Mbps – Megabits per second, one million bits per second. 1,000,000 bits per second.

Middle Mile – Middle Mile refers to an infrastructure project that feeds Last Mile infrastructure, often supplying bandwidth and a connection to a comprehensive backbone, demarc, Tier 1 Internet point of presence or hub.

Point of Presence (PoP) – An Internet point of presence is an access point to a carrier's network or the Tier 1 Internet. It is a physical location that houses servers, routers and other technical equipment. It may be housed in either part of the facilities of a telecommunications provider that the ISP rents or a location separate from the telecommunications provider. ISPs typically have multiple POPs, sometimes numbering in the thousands. POPs are also located at NAPs, IXPs and collocation centers.

Right of Way (ROW) – The privilege of someone to pass over land belonging to someone else. In the context of fiber construction, ROWs need to be obtained to build fiber on public roads—both local municipalities and Michigan Department of Transportation.

Router – A router is a device or, in some cases, software in a computer, that determines the next network point to which a packet should be forwarded toward its destination. The router decides which way to send each information packet based on its current understanding of the state of the networks it is connected to.

Switch – A network device that filters and forwards a piece of a message (also called packets) between network segments.

Tier 1 Internet – With the advent of broadband as a telecommunications resource, the first model of the Internet that emerged involved a number of Tier 1 Internet providers connecting to one another and forming a central trunk or superhighway that allowed a user to access any site anywhere on the globe. ISPs functioned as commercial on-ramps to the superhighway and charged users for access and bandwidth. Today, traffic on the Tier 1 Internet is decreasing as more and more traffic is retained by Regional networks that offer users better connections to content that is stored closer.

Video conferencing – Provides real-time interactive video and audio to a distributed number of participants simultaneously.

Voice over Internet Protocol (VoIP) – Technology that enables broadband users to send and receive telephone calls over the Internet.

WAN – A Wide Area Network (WAN), as the term implies, spans a large physical distance. It is a geographically-dispersed collection of LANs. Routers connect LANs to a WAN. A WAN differs from a LAN in several important ways. Most WANs (like the Internet) are not owned by any one organization but rather exist under collective or distributed ownership and management. WANs tend to use technology like ATM, Frame Relay and X.25 for connectivity over the longer distances.

WISP – Short for Wireless Internet Service Provider, WISPs offer Internet connection services to subscribers using a wireless connection.

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Relevant Organizations and Reports Organizations Fiber to the Home Council Non-profit fiber advocacy association Federal Communications Independent agency of the U.S. government, to regulate interstate Commission communications by radio, television, wire, satellite, and cable National Telecommunications NTIA is the President's principal adviser on telecommunications and & Information Administration information policy. The Benton Foundation works to ensure that media and Benton Foundation telecommunications serve the public interest. National Association of Local government professional association that provides support on Telecommunications Officers technology laws and issues impacting the interests of local and Advisors (NATOA) governments Non-profit, advocacy organization that supports open, affordable, Schools, Health & Libraries high-capacity broadband connections for anchor institutions and Broadband Coalition their surrounding communities. CTC Consulting & Energy An independent communications and IT engineering consulting firm Harnesses the collective power of philanthropy and financial Living Cities institutions to improve the lives of low-income people and the cities where they live Convenes partners in industry, academia and government to identify US Ignite and share best practices and resources A broad-based group of over 30 leading research universities from Gig.U across the U.S. to accelerate the deployment of high-speed networks to universities and their surrounding communities Industry magazine focused on digital and broadband technologies for Broadband Communities buildings and communities Supports community leaders across the country as they seek to Next Century Cities ensure that all have access to fast, affordable, and reliable Internet Institute for Local Self-Reliance defends the right of communities to build broadband,./ networks Community Broadband without states or the federal government creating unique barriers Networks that apply only to public sector providers Reports & Tools A collection of best practices to assist cities and fiber providers – Google Fiber City Checklist whether they are future Google cities or not. CTC Technology & Energy Technical strategies for facilitating public or private broadband Gigabit Communities Report construction in your community. Facilitating Broadband A guide to fiber readiness Construction Playing to Win in America’s A publication by Kansas City, KS and Kansas City, MO about Digital Crossroads capitalizing on their newly-acquired next generation speeds. NTIA Broadband Adoption Best practices and lessons learned from the Broadband Technology Toolkit Opportunities Program. What Fiber can Do for Your From the 2013 Broadband Summit, a great report answering the Community “why?” of gigabit fiber networks. Early Evidence Suggests A study released by the FTTH Council found that gigabit cities had per Gigabit Broadband Drives GDP capita GDPs 1.1 % higher than non-adopters

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Appendix B: Broadband Inventory

Garland County Broadband Availability Garland County Wireline Providers AT&T

 DSL: 86.8% population coverage  Mobile Wireless: 100% population coverage

Mobile Wireless Mobile Wireless Speed DSL Download DSL Upload Download Download 200 Kbps N/A 86.8% N/A 100.0% 768 Kbps 86.8% 45.1% 100.0% 100.0% 1.5 Mbps 77.9% 0.9% 100.0% 100.0% 3 Mbps 58.8% 0.9% 100.0% 97.6% 6 Mbps 45.1% 0.9% 97.6% 100.0% 10 Mbps 37.4% 0.0% 97.6% 0.0% 25 Mbps 0.9% 0.0% 0.0% 0.0% 50 Mbps 0.0% 0.0% 0.0% 0.0% 100 Mbps 0.0% 0.0% 0.0% 0.0% 1 Gbps 0.0% 0.0% 0.0% 0.0%

Suddenlink Communications

 Cable Modem: 8.2% population coverage

Speed Cable Download Cable Upload

200 Kbps N/A 8.2% 768 Kbps 8.2% 7.1% 1.5 Mbps 8.2% 7.1% 3 Mbps 8.2% 0.0% 6 Mbps 8.2% 0.0% 10 Mbps 8.2% 0.0% 25 Mbps 8.2% 0.0% 50 Mbps 8.2% 0.0% 100 Mbps 0.0% 0.0% 1 Gbps 0.0% 0.0%

Resort Television Cable Company

 Cable Modem: 78.0% population coverage

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Speed Cable Download Cable Upload

200 Kbps N/A 78.0% 768 Kbps 78.0% 78.0% 1.5 Mbps 78.0% 0.0% 3 Mbps 78.0% 0.0% 6 Mbps 78.0% 0.0% 10 Mbps 78.0% 0.0% 25 Mbps 0.0% 0.0% 50 Mbps 0.0% 0.0% 100 Mbps 0.0% 0.0% 1 Gbps 0.0% 0.0%

Windstream Corporation

 DSL: 0.1% population coverage

Speed Cable Download Cable Upload

200 Kbps N/A 0.1% 768 Kbps 0.1% 0.1% 1.5 Mbps 0.1% 0.0% 3 Mbps 0.1% 0.0% 6 Mbps 0.1% 0.0% 10 Mbps 0.1% 0.0% 25 Mbps 0.0% 0.0% 50 Mbps 0.0% 0.0% 100 Mbps 0.0% 0.0% 1 Gbps 0.0% 0.0%

Garland County Wireless Providers Wireless Etc.

 Terrestrial Fixed Wireless: 85.4% population coverage

Speed Cable Download Cable Upload

200 Kbps N/A 85.4% 768 Kbps 85.4% 85.4% 1.5 Mbps 85.4% 85.4% 3 Mbps 85.4% 0.0% 6 Mbps 0.0% 0.0% 10 Mbps 0.0% 0.0% 25 Mbps 0.0% 0.0% 50 Mbps 0.0% 0.0%

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100 Mbps 0.0% 0.0% 1 Gbps 0.0% 0.0%

Sprint Nextel

 Terrestrial Mobile Wireless: 88.1% population coverage

Mobile Wireless Mobile Wireless Speed Download Download 200 Kbps N/A 88.1% 768 Kbps 88.1% 0.0% 1.5 Mbps 0.0% 0.0% 3 Mbps 0.0% 0.0% 6 Mbps 0.0% 0.0% 10 Mbps 0.0% 0.0% 25 Mbps 0.0% 0.0% 50 Mbps 0.0% 0.0% 100 Mbps 0.0% 0.0% 1 Gbps 0.0% 0.0%

T-Mobile

 Terrestrial Mobile Wireless: 88.5% population coverage

Mobile Wireless Mobile Wireless Speed Download Download 200 Kbps N/A 88.5% 768 Kbps 88.5% 87.4% 1.5 Mbps 88.5% 87.4% 3 Mbps 87.4% 87.4% 6 Mbps 87.4% 87.4% 10 Mbps 87.4% 0.0% 25 Mbps 0.0% 0.0% 50 Mbps 0.0% 0.0% 100 Mbps 0.0% 0.0% 1 Gbps 0.0% 0.0%

Verizon Communications

 Terrestrial Mobile Wireless: 98.8% population coverage

Mobile Wireless Mobile Wireless Speed Download Download 200 Kbps N/A 98.8% 768 Kbps 98.8% 97.5%

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1.5 Mbps 97.5% 97.5% 3 Mbps 97.5% 97.5% 6 Mbps 97.5% 0.0% 10 Mbps 97.5% 0.0% 25 Mbps 0.0% 0.0% 50 Mbps 0.0% 0.0% 100 Mbps 0.0% 0.0% 1 Gbps 0.0% 0.0%

Hot Springs Broadband Availability Hot Springs Wireline Providers AT&T

 DSL: 100% population coverage  Mobile Wireless: 100% population coverage

Mobile Wireless Mobile Wireless Speed DSL Download DSL Upload Download Download 200 Kbps N/A 99.9% N/A 100.0% 768 Kbps 99.9% 38.9% 100.0% 100.0% 1.5 Mbps 88.3% 0.0% 100.0% 100.0% 3 Mbps 57.8% 0.0% 100.0% 100.0% 6 Mbps 38.9% 0.0% 100.0% 0.0% 10 Mbps 33.2% 0.0% 100.0% 0.0% 25 Mbps 0.0% 0.0% 0.0% 0.0% 50 Mbps 0.0% 0.0% 0.0% 0.0% 100 Mbps 0.0% 0.0% 0.0% 0.0% 1 Gbps 0.0% 0.0% 0.0% 0.0%

Resort Television Cable Company

 Cable Modem: 100.0% population coverage

Speed Cable Download Cable Upload

200 Kbps N/A 100.0% 768 Kbps 100.0% 100.0% 1.5 Mbps 100.0% 0.0% 3 Mbps 100.0% 0.0% 6 Mbps 100.0% 0.0% 10 Mbps 100.0% 0.0% 25 Mbps 0.0% 0.0% 50 Mbps 0.0% 0.0% 100 Mbps 0.0% 0.0%

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1 Gbps 0.0% 0.0%

Hot Springs Wireless Providers Wireless Etc.

 Terrestrial Fixed Wireless: 98.4% population coverage

Wireless Speed Wireless Upload Download 200 Kbps N/A 98.4% 768 Kbps 98.4% 98.4% 1.5 Mbps 98.4% 98.4% 3 Mbps 98.4% 0.0% 6 Mbps 0.0% 0.0% 10 Mbps 0.0% 0.0% 25 Mbps 0.0% 0.0% 50 Mbps 0.0% 0.0% 100 Mbps 0.0% 0.0% 1 Gbps 0.0% 0.0%

Sprint Nextel Corporation

 Terrestrial Mobile Wireless: 100% population coverage

Mobile Wireless Mobile Wireless Speed Download Download 200 Kbps N/A 100.0% 768 Kbps 100.0% 0.0% 1.5 Mbps 0.0% 0.0% 3 Mbps 0.0% 0.0% 6 Mbps 0.0% 0.0% 10 Mbps 0.0% 0.0% 25 Mbps 0.0% 0.0% 50 Mbps 0.0% 0.0% 100 Mbps 0.0% 0.0% 1 Gbps 0.0% 0.0%

3T-Mobile

 Terrestrial Mobile Wireless: 99.8% population coverage

Mobile Wireless Mobile Wireless Speed Download Download 200 Kbps N/A 99.8% 768 Kbps 99.8% 99.8%

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1.5 Mbps 99.8% 99.8% 3 Mbps 99.8% 99.8% 6 Mbps 99.8% 99.8% 10 Mbps 99.8% 0.0% 25 Mbps 0.0% 0.0% 50 Mbps 0.0% 0.0% 100 Mbps 0.0% 0.0% 1 Gbps 0.0% 0.0%

Verizon Communications Inc.

 Terrestrial Mobile Wireless: 100.0% population coverage

Mobile Wireless Mobile Wireless Speed Download Download 200 Kbps N/A 100.0% 768 Kbps 100.0% 100.0% 1.5 Mbps 100.0% 100.0% 3 Mbps 100.0% 100.0% 6 Mbps 100.0% 0.0% 10 Mbps 100.0% 0.0% 25 Mbps 0.0% 0.0% 50 Mbps 0.0% 0.0% 100 Mbps 0.0% 0.0% 1 Gbps 0.0% 0.0%

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Appendix C: Residential Broadband Survey Results

1. What is your age? Response Response Answer Options Percent Count 18 to 24 8.1% 12 25 to 34 26.2% 39 35 to 44 16.8% 25 45 to 54 19.5% 29 55 to 64 22.8% 34 65 or older 5.4% 8 Prefer not to answer 1.3% 2 answered question 149

2. Which of the following best describes your highest level of educational attainment? Response Response Answer Options Percent Count No high school degree 0.0% 0 High school graduate only 12.8% 19 Associate degree or equivalent 24.3% 36 Bachelor’s degree or higher 60.1% 89 Prefer not to answer 2.7% 4 answered question 148

3. Ethnicity: Are you of Hispanic, Spanish, or Latino/a descent? Response Response Answer Options Percent Count Yes 4.1% 6 No 93.2% 137 Prefer not to answer 2.7% 4 answered question 147

4. Which of the following best describes your race? Response Response Answer Options Percent Count White 93.3% 139 Black or African American 1.3% 2 Asian 0.7% 1 Other 1.3% 2

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Prefer not to answer 3.4% 5 answered question 149

5. What is your annual household income? Response Response Answer Options Percent Count Less than $10,000 0.0% 0 $10,000 to $29,999 6.1% 9 $30,000 to $49,999 20.3% 30 $50,000 to $74,999 26.4% 39 $75,000 or more 35.1% 52 Prefer not to answer 12.2% 18 answered question 148

6. How many people live in your home? Response Response Answer Options Percent Count 1 12.1% 18 2 41.6% 62 3 20.8% 31 4 14.8% 22 5 8.7% 13 6 1.3% 2 7 or more 0.0% 0 Prefer not to answer 0.7% 1 answered question 149

7. Do you have children or grandchildren under the age of 18 that live in your home? Response Response Answer Options Percent Count Yes 33.6% 50 No 64.4% 96 Prefer not to answer 2.0% 3 answered question 149

8. Does anyone in your household access the internet at the following locations? (Please check all that apply) Response Response Answer Options Percent Count Work 89.1% 98 On phone or mobile device 99.1% 109 Relative / friends’ house 48.2% 53

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Public library 22.7% 25 Restaurant / coffee shop 52.7% 58 School or college 32.7% 36 Community center 7.3% 8 Mail / retail stores 21.8% 24 Hotel / Motel / Vacation home 46.4% 51 Other 3.6% 4 answered question 110

9. Do you have any type of personal computer in your home? Response Response Answer Options Percent Count Yes 98.1% 106 No 1.9% 2 I don’t know 0.0% 0 answered question 108

10a. Do you subscribe to internet service at your home? Response Response Answer Options Percent Count Yes 89.9% 98 No 10.1% 11 I don’t know 0.0% 0 answered question 109

10b. If No, please indicate reasons why you do not subscribe to home Internet service and skip to question 33 (please check all that apply). Response Response Answer Options Percent Count Sufficient access to the Internet elsewhere (work, 9.1% 1 library, church, restaurant, etc.) Private, safety, or security concerns 0.0% 0 Cost of Internet connection 81.8% 9 Internet service is not available 36.4% 4 Lack of technical skills/knowledge to use the 0.0% 0 Internet Mobile device is all I need 18.2% 2 I see no benefit to Internet access 0.0% 0 Other (please specify) 36.4% 4 answered question 11

11. If Yes, why did you initially subscribe to broadband Internet?

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Response Response Answer Options Percent Count I bought a computer 13.9% 14 I learned that broadband became available in my 3.0% 3 area The cost of broadband became more affordable 4.0% 4 I needed to conduct business online 21.8% 22 I heard about the benefits of broadband in the news 0.0% 0 or in my community To communicate with friends and family 5.0% 5 My household needed it as an educational resource 9.9% 10 For research, shopping or to pay bills 20.8% 21 For entertainment purposes 17.8% 18 In order to interact with a healthcare professional 0.0% 0 Other (please specify) 4.0% 4 answered question 101

12. Which internet service provider (ISP) does your household currently subscribe to? Response Response Answer Options Percent Count Arkansas Wireless 1% 1 AT&T 28% 28 Central Arkansas Telephone Coop 2% 2 Direct TV 1% 1 Dish Network 3% 3 Excede 1% 1 Hughes Net 1% 1 Sudden link 2% 2 Verizon 8% 8 WEHCO 51% 51 Windstream 1% 1 Wireless Etc 1% 1 answered question 100

13. What type of technology platform do you receive your internet service through? Response Response Answer Options Percent Count Dial-up 0.0% 0 Satellite Internet service 9.7% 10 Cable modem 45.6% 47 DSL 21.4% 22 Fixed wireless 6.8% 7 Mobile wireless 7.8% 8 Fiber 1.0% 1

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Don’t know 5.8% 6 Other (please specify) 1.9% 2 answered question 103

14. Why did you choose this connection type? (Please check all that apply) Response Response Answer Options Percent Count Cost 15.5% 16 Speed 37.9% 39 Only available service 43.7% 45 Best reliability 10.7% 11 I don’t know 7.8% 8 answered question 103

15. Is your home internet service part of a bundle of services (i.e. cable, internet, phone)? Response Response Answer Options Percent Count Yes 38.8% 40 No 61.2% 63 I don’t know 0.0% 0 answered question 103

16. To the best of your knowledge, which types of technology platforms are currently available to your location? (Please select all that apply) Response Response Answer Options Percent Count Dial-up 33.0% 35 Satellite Internet service 48.1% 51 Cable modem 67.0% 71 DSL 50.9% 54 Fixed wireless 13.2% 14 Mobile wireless 38.7% 41 Fiber 2.8% 3 Don’t know 13.2% 14 Other (please specify) 2.8% 3 answered question 106

17. What is the approximate cost of your home internet subscription per month? Response Response Answer Options Percent Count Under $40 11.7% 12

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$41 - $50 13.6% 14 $51 - $60 22.3% 23 $61 - $70 20.4% 21 $71 - $80 10.7% 11 $81 – $90 1.9% 2 $91 - $100 4.9% 5 $101 and above 7.8% 8 I don’t know 6.8% 7 answered question 103

18. What is the approximate download/upload speeds or bandwidth provided by your Internet service provider? Please use this link and record in the box below: Answer Options Response Percent Download 16.26 Mbps Upload 6.44 Mbps answered question 63

19. How do you use your home internet connection? (Please check all options that apply) Response Response Answer Options Percent Count Communicate through email or other ways of 96.0% 96 sending messages Research or purchase goods or services 96.0% 96 Sell products and/or services online 26.0% 26 Explore or participate in hobbies or personal interest 91.0% 91 Use social networking sites like Facebook 91.0% 91 Bank online or pay bills 94.0% 94 Read online newspapers or other news sources 79.0% 79 Search for medical information or communicating with healthcare professionals like doctors or 62.0% 62 insurance offices Take online classes or conducting research for 43.0% 43 schoolwork Search or apply for jobs 37.0% 37 Interact with government offices or elected officials 41.0% 41 Other (please specify) 7.0% 7 answered question 100

20. Does anyone in your household use the internet to work from home? Response Response Answer Options Percent Count Yes 51.0% 52

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No 48.0% 49 I don’t know 1.0% 1 answered question 102

21. Does anyone in your home operate an online business? Response Response Answer Options Percent Count Yes 9.9% 10 No 90.1% 91 I don’t know 0.0% 0 answered question 101

22. Does anyone in your household use the internet to complete school or job training course work? Response Response Answer Options Percent Count Yes 53.9% 55 No 46.1% 47 I don’t know 0.0% 0 answered question 102

23. Have you, or anyone that lives in your home, ever experienced difficulty completing school or work assignments due to home internet accessibility issues? Response Response Answer Options Percent Count Often 24.3% 25 Occasionally 42.7% 44 Rarely 16.5% 17 Never 16.5% 17 answered question 103

24. To what extent would you say that the actual speeds your home receives compares to the speeds advertised by the internet provider you use? Response Response Answer Options Percent Count Faster than advertised 1.0% 1 About the same as advertised 25.0% 24 Slower than advertised 63.5% 61 I don't know 10.4% 10 answered question 96

25. How satisfied are you with your current internet service provider?

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Response Response Answer Options Percent Count Very satisfied 3.1% 3 Satisfied 31.3% 30 Unsatisfied 47.9% 46 Very Unsatisfied 17.7% 17 answered question 96

26. Please indicate your level of satisfaction with each characteristics of your internet service.

Answer Options Very Satisfied Satisfied Dissatisfied Very Dissatisfied Speed of connection 3% 44% 37% 15% Subscription cost 4% 22% 44% 29% Technical support 1% 50% 30% 19% Reliability of access 3% 48% 28% 21% Customer Service 1% 57% 21% 21% Competition, or number 1% 13% 24% 61% of providers answered question 96

27. Would you say that your download Internet connection speed (transfer of data to a PC) is: Response Response Answer Options Percent Count Fast enough for your needs 15.6% 15 Average, but not quite fast enough for your needs 34.4% 33 Fairly slow and we would like to be connected a 28.1% 27 higher speeds Very slow and we would like to be connected at 21.9% 21 much higher speeds answered question 96

28. Would you say that your upload Internet connection speed (transfer of data from a PC) is: Response Response Answer Options Percent Count Fast enough for your needs 13.5% 13 Average, but not quite fast enough for your needs 33.3% 32 Fairly slow and we would like to be connected a 25.0% 24 higher speeds Very slow and we would like to be connected at 28.1% 27 much higher speeds answered question 96

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29. How would you describe the reliability of your internet service? (reliability is defined as consistent signal strength) Response Response Answer Options Percent Count Very reliable 5.2% 5 Fairly reliable 62.5% 60 Fairly unreliable 18.8% 18 Very unreliable 13.5% 13 answered question 96

30. Which of the following apply to your household’s need for additional bandwidth (Internet speed)? Response Response Answer Options Percent Count I can obtain additional bandwidth, but have chosen 23.2% 22 not to invest in it yet Do not know if more bandwidth is available in my 31.6% 30 area I cannot obtain additional bandwidth in my area 41.1% 39 I do not know why I haven’t invested in additional 4.2% 4 bandwidth answered question 95

31. How likely would you be to sign up for faster broadband speeds, if it were available? Response Response Answer Options Percent Count Definitely 39.8% 39 Very likely 28.6% 28 Quite likely 28.6% 28 Unlikely 2.0% 2 Very unlikely 0.0% 0 Definitely not 0.0% 0 Already have adequate speeds 1.0% 1 answered question 98

32. What download speed would best fit your needs? Response Response Answer Options Percent Count 0-4 Mbps 1.0% 1 4-24 Mbps 8.2% 8 25-50 Mbps 20.4% 20 51-100 Mbps 18.4% 18 101-300 Mbps 7.1% 7

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301 Mbps – 500 Mbps 4.1% 4 1 Gbps + 9.2% 9 I don’t know 31.6% 31 answered question 98

33. What upload speed would best fit your needs? Response Response Answer Options Percent Count 0-4 Mbps 5.1% 5 4-24 Mbps 26.5% 26 25-50 Mbps 12.2% 12 51-100 Mbps 10.2% 10 101-300 Mbps 6.1% 6 301 Mbps – 500 Mbps 2.0% 2 1 Gbps + 7.1% 7 I don’t know 30.6% 30 answered question 98

34. What is the maximum monthly subscription fee that you are willing to pay for faster broadband speeds? Response Response Answer Options Percent Count Less than $40 per month 17.3% 17 Between $41 and $60 per month 33.7% 33 Between $61 and $80 per month 31.6% 31 Between $81 and $100 per month 10.2% 10 Between $101 and $120 per month 3.1% 3 Between $121 and $140 per month 1.0% 1 $141 or more 3.1% 3 answered question 98

35. What more would you do if your connection was significantly faster? (Please check all options that apply). Answer Options Response Percent Response Count Start a home business 22.4% 22 Communicate through email or other ways of 73.5% 72 sending messages Research or purchase goods or services 73.5% 72 Sell products and/or services online 37.8% 37 Explore or participate in hobbies or personal 70.4% 69 interest Use social networking sites like Facebook 71.4% 70 Bank online or pay bills 71.4% 70

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Read online newspapers or other news sources 60.2% 59 Search for medical information or communicating with healthcare professionals like doctors or 50.0% 49 insurance offices Take online classes or conducting research for 48.0% 47 schoolwork Search or apply for jobs 32.7% 32 Interact with government offices or elected 37.8% 37 officials Other (please specify) 20.4% 20 answered question 98

Other (please specify) stream more Watch more online streaming Stream TV Stream Television Remote access VPN, Work from home,Internet based business don't know none FOR THE LOVE OF GOD SEND FIBER. media streaming Streaming media Id be more efficient. nothing different, just faster Multi-Media Downloads (Netflix, Youtube, etc.) TV and movies Nothing download larger files Gaming, more streaming Cloud rendering of 3D modeling work. Stream online media, gaming Entertainment

36. Did the availability of broadband internet access impact your decision to rent/purchase your current home in Hot Springs? Response Response Answer Options Percent Count Yes 22.9% 22 No 76.0% 73 I don’t know 1.0% 1 answered question 96

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37. In the future, would you be willing to pay more for a home that had access to a high-speed broadband connection (i.e. a fiber to the home connection, enabling next generation speeds)? Response Response Answer Options Percent Count Yes 53.7% 51 No 31.6% 30 I don't know 14.7% 14 answered question 95

38. What do you believe the benefits of a fiber broadband network would be for Hot Springs? Fiber transmits data at speeds far exceeding current DSL or cable modem speeds, typically by tens or even hundreds of Mbps. (Please check all that apply) Answer Options Response Percent Response Count Faster speeds 85.4% 82 Reliability 84.4% 81 Security 57.3% 55 Future proof 39.6% 38 No benefits 0.0% 0 I don’t know 7.3% 7 Other (please specify) 3.1% 3 answered question 96

Other (please specify)

Attract homeowners More competition. It would attract businesses that offer good paying jobs.

39. Do you think Hot Springs would benefit economically from increased broadband access and speeds? Response Response Answer Options Percent Count Yes 90.6% 87 No 1.0% 1 I don't know 8.3% 8 answered question 96

40. How does access to Wi-Fi impact your decision to visit downtown Hot Springs? Response Response Answer Options Percent Count

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I (or family members) travel downtown to access Wi-Fi at restaurants and retail stores for work, 10.5% 10 school, or entertainment The lack of adequate Wi-Fi is a deterrent to me 20.0% 19 visiting downtown Internet access has no impact on my decision to visit 56.8% 54 downtown Hot Springs I don’t know 12.6% 12 Other (please specify) 0.0% 0 answered question 95

41. Do you believe that businesses in downtown Hot Springs are successfully leveraging the Internet and related technologies to boost business growth? Response Response Answer Options Percent Count Yes 12.5% 12 No 56.3% 54 I don't know 30.2% 29 Other (please specify) 1.0% 1 answered question 96 skipped question 54

42. How important is it for all residents of the Hot Springs community to have access to a computer and high-speed broadband Internet? Response Response Answer Options Percent Count Very important 68.8% 66 Important 22.9% 22 Somewhat important 6.3% 6 Not at all important 1.0% 1 I don’t know 1.0% 1 answered question 96

43. Are you aware of public resources for digital literacy training in Hot Springs? Digital literacy refers to the knowledge and skills to utilize digital devices such as smartphones, tablets, laptops, and desktop PCs in order find, evaluate, create, and communicate information on the internet. Response Response Answer Options Percent Count Yes 31.3% 30 No 62.5% 60 I don’t know 6.3% 6 answered question 96

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44, If free digital literacy training classes were offered in Hot Springs, would you have interest in attending? Response Response Answer Options Percent Count Yes 38.5% 37 No 55.2% 53 I don’t know 6.3% 6 answered question 96

45. Do you have additional feedback about broadband in Hot Springs that you would like to share?

Answer Options Response Count answered question 26 Response Text It is ridiculous that that there are still so many places that have no access to decent internet. We need to move from the stone age into the here and now and into the future! The monopoly of 1-2 options allows the companies to be slow in making changes good for the community (ie reduced cost or increased speed). A good fiber optic option would force other companies to improve their business model to compete. Higher speeds could attract new industries to our area I think having true high speed internet available in Hot Springs would be a big economic gain for Hot Springs. There are a lot of people who would love to work remotely from Hot Springs but have a hard time doing so due to the high cost of decently fast internet. Additionally, I think that strengthened infrastructure (including technology infrastructure) would do a lot to bring much needed employers to our area. it would be nice to have competition in hot springs broadband services Internet access in the county is horrible. during the summer when kids are home from school it is so slow as to be unusable. If Hot Springs is to become a " Cool City" broadband accessibility and reliability plus speed will have to improve dramatically. Affordable, easily accessible, high-speed broadband would have a beneficial ripple effect throughout the Hot Springs and Garland County area. I'm considering moving because there are no good options for internet access in Hot Springs. I've been tethering off my phone for over a year because it's faster than the best either AT&T or Cable Lynx can offer to my address and there are no other options. And that's sad. Present bandwidth and speed are satisfactory. However, when it fails the service and support are deplorable. I would switch to another provider if there a more reliable option. No... Compatibility with devices very important We need to break the monopoly of high speed access that is suffering because of the poor service ang high prices by resort cable tv this monopoly holds back any future progress in hot springs and the surrounding area Hot Springs greatly needs fiber choices.

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Extremely unsatisfied with Resort Cable. I've had numerous problems with them and experienced poor customer service. The lack of competing companies offering cable internet means I have no choice but to use them. That reeks of a monopoly and is not what city should be supporting. Cablelynx/resort TV and Internet is horrible. Every once in a blue moon the Internet will be decent. Plus the customer service is not up to par at Resort by far. Sadly we cannot get suddenlink, or we would. We had them before in Hot Springs Village, and the customer service, reliability, and speed is so much better than Resort TV Cable. I would like to have a choice of providers other than Resort TV Cable We need an actual fiber backbone for this town. We need fiber, the US has one of the slower internet speeds in the world. We need to catch up to other first world countries like Japan. Availability is not the only issue (although it is very important). The cost of bandwidth in Hot Springs is significantly higher than in surrounding areas. From an economic growth perspective, having higher speeds at competitive prices would help small companies (and large ones) to make the decision to put people and capability in Hot Springs. It's absolute garbage. Cablelynx is a monopoly on the only 'high speed' internet services that are useful to anyone at all. The government is corrupt and allows this and promotes this. One of the questions in these survey, which asked about my current satisfaction with various components of my broadband service, was inadequately designed so that I could not pick "Very Dissatisfied" for more than one of the component options. (Author’s Edit: TPMA found and corrected this issue). I think there should be more adequate competition in place to make this a better place for consumers to live. We've historically had some of the slowest internet speeds in the country, and I think that would change if competitors would actually find value in us as a market. I think AT&T Fiber or Google Fiber would work wonders here, and should be consulted with should this be put in place. For the amount of people that live in Hot Springs and to have slower and way less reliable internet than three smaller towns that surround Hot Springs is frustrating. On top of that the service in Hot Springs is much more expensive. The current ISP cable Lynx is not up to current Gen technology, speed, or reliability. Hot Springs really needs a new ISP. Either bring a new company in to compete with the local Broadband provider, or have the current branch out more than just Hot springs. Neighboring communities outside of Hot Springs city limits have zero providers unless they deal with Mobile based like AT&T or Verizon. There are zero DSL companies able to provide these communities any chance of stable non capped internet. I am from a county that has less possibilities than Garland and we had DSL opportunities. The current Internet possibilities for Garland County in 2015 are asinine.

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Appendix D: Business Broadband Survey Results

1. How long has your company been in business? Response Response Answer Options Percent Count 1 - 5 years 21.1% 23 5 - 10 years 12.8% 14 10 - 15 years 8.3% 9 15 - 20 years 4.6% 5 20 - 25 years 8.3% 9 25 or more years 45.0% 49 answered question 109

2. What industry sector best represents your business? Response Response Answer Options Percent Count Retail (Grocery store, department store, etc.) 14.4% 13 Manufacturing (Electronics, fabrication, Assembly, 7.8% 7 etc.) Construction and specialized trade contracting 3.3% 3 Professional services (Legal, Engineering, Financial, 32.2% 29 etc.) Healthcare 7.8% 7 Hospitality services (Restaurant, hotel, etc.) 10.0% 9 Other services (Auto repair, lawn care, etc.) 1.1% 1 Civic/Public (City, county, state, federal, etc.) 4.4% 4 Non-profit (church, charity, etc.) 15.6% 14 Education (public or private) 3.3% 3 Other (please specify) 26 answered question 90

3. Are you the person at the business who pays the utility bills, including internet access? Response Response Answer Options Percent Count Yes 51.9% 56 No 14.8% 16 I am not the bill payer but I am involved in 33.3% 36 purchasing decisions answered question 108

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4. How many people are employed by your business? Response Response Answer Options Percent Count Sole proprietor 13.6% 15 2 – 5 people 23.6% 26 6 – 10 people 14.5% 16 11 – 25 people 20.9% 23 26 – 49 people 8.2% 9 50 – 100 people 9.1% 10 101 – 250 people 4.5% 5 Over 250 people 5.5% 6 answered question 110

5. Are you independent or a branch of a larger company? Response Response Answer Options Percent Count Independent 79.1% 87 Branch of larger company 20.9% 23 answered question 110

6. Does your business subscribe to internet access? Response Response Answer Options Percent Count Yes 97.4% 74 No 1.3% 1 I don't know 1.3% 1 answered question 76

7. If your business does not currently subscribe to an internet connection, can you please explain if there is a reason why? (Then please skip to question 28) Answer Options Response Count 2 answered question 2 Response Number Text 1 NA 2 Access & cost

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8. How do you currently connect to the Internet at your business? Response Response Answer Options Percent Count Dial up (through a telephone line) 0.0% 0 DSL 16.2% 12 Cable 40.5% 30 Fixed Wireless 10.8% 8 Mobile Wireless 1.4% 1 Satellite 1.4% 1 Fiber 9.5% 7 T-1 or leased line 8.1% 6 I don't know 4.1% 3 Other (please specify) 8.1% 6 answered question 74

9. Which types of Internet services are currently available to your business location (to the best of your knowledge)? (Please check all that apply) Response Response Answer Options Percent Count Dial up (through a telephone line) 35.6% 26 DSL 53.4% 39 Cable 72.6% 53 Fixed Wireless 26.0% 19 Mobile Wireless 32.9% 24 Satellite 31.5% 23 Fiber 16.4% 12 T-1 or leased line 23.3% 17 I don't know 8.2% 6 Other (please specify) 1.4% 1 answered question 73

10. Who is your Internet service provider (i.e. AT&T, Suddenlink, etc.)? Response Response Answer Options Percent Count AT&T 35.9% 24 Cable Lynx 18.8% 13 Hughes Net 1.6% 1 Resort Cable 26.6% 18 Suddenlink 3.1% 2 Verizon 3.1% 2 Windstream 7.8% 5 Wireless Etc. 3.1% 2

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answered question 67

11. What services are included in your internet subscription bundle? Response Response Answer Options Percent Count Only internet 64.9% 48 Landline phone 27.0% 20 Online data storage 4.1% 3 Mobile phone 6.8% 5 Managed VPN 5.4% 4 TV 16.2% 12 Don’t know 2.7% 2 Other (please specify) 4.1% 3 answered question 74

12. What is the approximate monthly cost of your internet service? Response Response Answer Options Percent Count Less than $50 17.6% 12 $51 - $100 35.3% 24 $101 - $150 19.1% 13 $151 - $200 5.9% 4 $201 - $250 1.5% 1 $251 - $300 5.9% 4 More than $300 14.7% 10 answered question 68

13. What is the approximate monthly cost of your bundled service, including internet access? Response Response Answer Options Percent Count Less than $50 8.9% 5 $51 - $100 17.9% 10 $101 - $150 12.5% 7 $151 - $200 16.1% 9 $201 - $250 7.1% 4 $251 - $300 12.5% 7 More than $300 25.0% 14 answered question 56

14. What is the approximate download/upload speeds or bandwidth provided by your Internet service provider? Please use this link and record in the box below:

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Answer Options Response Percent Download 21.27 Mbps Upload 11.09 Mbps answered question 54

15. Does your business have a website? Response Response Answer Options Percent Count Yes, used for information and e-commerce 52.7% 39 Yes, but it is not used for e-commerce 31.1% 23 No 16.2% 12 answered question 74

16. What do you use to Internet connection for? (Please check all that apply) Response Response Answer Options Percent Count Access information (e.g. web browsing) 94.6% 70 Online purchasing 82.4% 61 Banking 89.2% 66 Employee benefits information 36.5% 27 Bidding on contracts online 16.2% 12 Customer support 59.5% 44 Email 95.9% 71 Access to virtual private networks (VPNs) 41.9% 31 Video conferencing (Skype) 41.9% 31 Watching online content 59.5% 44 Social marketing (e.g. Facebook, Twitter, LinkedIn) 73.0% 54 Advertising 58.1% 43 Updating/maintaining company website 66.2% 49 Sales / e-commerce 35.1% 26 Cloud services (e.g. backup, Google Docs, Salesforce, 45.9% 34 etc.) Training 27.0% 20 Transfer of files (e.g. video, audio) 51.4% 38 Business Process (e.g. time sheets, stock control, 48.6% 36 etc.) answered question 74

17. Are you dependent on an Internet service to run your business? Response Response Answer Options Percent Count

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It is essential 79.7% 59 High dependency 14.9% 11 Medium 2.7% 2 Low 1.4% 1 Not at all 1.4% 1 answered question 74

18. What percentage of your annual sales revenue is earned from online sales? Percentage of Answer Options Revenue Online Revenue 36% answered question 48

19. To what extent would you say that the actual speeds that your business receives compares to the speeds advertised by the internet provider you use? Response Response Answer Options Percent Count Faster than advertised 1.4% 1 About the same as advertised 45.7% 32 Slower than advertised 48.6% 34 I don't know 4.3% 3 answered question 70

20. Would you say that your download Internet connection speed (transfer of data to a PC) is: Response Response Answer Options Percent Count Fast enough for your needs 30.0% 21 Average, but not quite fast enough for your needs 40.0% 28 Fairly slow and we would like to be connected a 25.7% 18 higher speeds Very slow and we would like to be connected at 4.3% 3 much higher speeds answered question 70

21. Would you say that your upload Internet connection speed (transfer of data from a PC) is: Response Response Answer Options Percent Count Fast enough for your needs 25.7% 18 Average, but not quite fast enough for your needs 32.9% 23 Fairly slow and we would like to be connected a 30.0% 21 higher speeds

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Very slow and we would like to be connected at 11.4% 8 much higher speeds answered question 70

22. How would you describe the reliability of your Internet service? (reliability is defined as consistent signal strength) Response Response Answer Options Percent Count Very reliable 33.8% 24 Fairly reliable 56.3% 40 Fairly unreliable 7.0% 5 Very unreliable 2.8% 2 answered question 71

23. How frequently does slow internet speeds make it difficult to do business or work for you or your employees? Response Response Answer Options Percent Count Always 1.4% 1 Very frequently 8.5% 6 Frequently 14.1% 10 Occasionally 45.1% 32 Rarely 14.1% 10 Very rarely 11.3% 8 Never 2.8% 2 I don't know 2.8% 2 answered question 71

24. Do you ever experience issues with your internet service in the Hot Springs area that have had a negative impact on your business? Response Response Answer Options Percent Count Often 5.6% 4 Occasionally 40.8% 29 Very rarely 40.8% 29 Never 9.9% 7 I don't know 2.8% 2 answered question 71

25. Would your need for additional bandwidth motivate your to relocate your business to a location that had higher-speed broadband available? Response Response Answer Options Percent Count Yes 20.3% 14

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No 59.4% 41 I don’t know 20.3% 14 answered question 69

26. Which of the following apply to your company’s need for additional bandwidth? Response Response Answer Options Percent Count I can obtain additional bandwidth, but have chosen 30.0% 21 not to invest in it yet. I cannot obtain additional bandwidth in my area. 30.0% 21 I do not know if more bandwidth is available in my 38.6% 27 area. I do not know why I haven’t invested in additional 1.4% 1 bandwidth. answered question 70

27. How likely would you be to sign up for faster speeds, if it were available? Response Response Answer Options Percent Count Definitely 24.3% 17 Very likely 30.0% 21 Quite likely 22.9% 16 Unlikely 11.4% 8 Very unlikely 4.3% 3 Definitely not 0.0% 0 Already have adequate speeds 7.1% 5 answered question 70

28. What download speed would best fit your needs? Response Response Answer Options Percent Count 0-4 Mbps 0.0% 0 4-24 Mbps 17.1% 12 25-50 Mbps 17.1% 12 51-100 Mbps 15.7% 11 101-300 Mbps 5.7% 4 301 Mbps – 500 Mbps 0.0% 0 1 Gbps + 10.0% 7 I don’t know 34.3% 24 answered question 70

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29. What upload speed would best fit your needs? Response Response Answer Options Percent Count 0-4 Mbps 8.6% 6 4-24 Mbps 25.7% 18 25-50 Mbps 8.6% 6 51-100 Mbps 8.6% 6 101-300 Mbps 4.3% 3 301 Mbps – 500 Mbps 4.3% 3 1 Gbps + 4.3% 3 I don’t know 35.7% 25 answered question 70

30. How much more per month would you be willing to pay for significantly faster broadband speeds? Response Response Answer Options Percent Count 20% more per month 80.0% 56 40% more per month 8.6% 6 60% more per month 5.7% 4 80% more per month 0.0% 0 100% more per month 5.7% 4 answered question 70

31. What more would you do if your connection was significantly faster? (Please check all options that apply). Response Response Answer Options Percent Count Online purchasing 30.9% 17 Banking 32.7% 18 Employee benefits information 20.0% 11 Bidding on contracts online 20.0% 11 Email 34.5% 19 Access to virtual private networks (VPNs) 29.1% 16 Video conferencing (e.g. Skype) 47.3% 26 Watching online content 38.2% 21 Social marketing (e.g. Facebook, Twitter, LinkedIn) 43.6% 24 Advertising 34.5% 19 Create/update company website 34.5% 19 Sales / e-commerce 32.7% 18 Cloud services (e.g. backup, Google Docs, Salesforce, 40.0% 22 etc.) Training 30.9% 17 Transfer of larger files (e.g. video, audio, graphics, 60.0% 33 documents)

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Business Process (e.g. time sheets, stock control, 29.1% 16 etc.) Other (please specify) 16.4% 9 answered question 55

32. Have you ever experienced any problems finding new employees with adequate knowledge to use a computer and access the internet for business purposes? Response Response Answer Options Percent Count Yes 32.3% 21 No 61.5% 40 I don’t know 6.2% 4 answered question 65

33. Do you offer training to employees to learn new software and/or computer programs? Response Response Answer Options Percent Count Yes 62.1% 41 No 33.3% 22 I don't know 4.5% 3 answered question 66

34. What types of training programs would enable you and/or your staff to utilize the Internet more effectively for your business? Response Response Answer Options Percent Count Online marketing 30.0% 15 Cloud computing 26.0% 13 Website development 36.0% 18 Using web analytics 18.0% 9 Conducting market research online 26.0% 13 Specific software training 48.0% 24 E-commerce in general 30.0% 15 How to use social media to support your business 56.0% 28 Other (please specify) 10.0% 5 answered question 50

35. If you or your employees utilize home internet connections for work as well, in general, what is the level of satisfaction with these connections? Response Response Answer Options Percent Count Very satisfied 14.8% 9 Satisfied 24.6% 15

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Neutral 32.8% 20 Dissatisfied 16.4% 10 Very dissatisfied 11.5% 7 answered question 61

36. Do you have additional feedback about broadband in Hot Springs that you would like to share?

Answer Options Response Count answered question 25 Response Text I think it is essential for the city to maintain sustainable growth. I have cablelynx at home and it is horrible at best... It is all that is available Hot Springs and Garland County need more cost effective and competitive options for broadband service. Wider coverage areas are also needed county-wide. Broadband choices are very limited, and many areas have only one provider, thus the cost is higher. Broadband is quickly becoming another utility. Cities providing it are growing at much faster rates than those that do not. Surrounding areas still don't have good options. It makes is super hard to connect from home for some. I would change internet companies if there was an option in my area other than Resort Cable. This cable company would actually put out a warrant for your arrest if you did not return the cable box. They don't do that anymore, but they did for many, many years. They basically used our Sheriff's department as a glorified collection agency for free. I know that many of the business owners in the area feel the same way. If Resort Cable had any level of competition in the area, they would be shut down. HS should offer good fast reliable free wifi in all of downtown area and promote it so every visitor and resident knows how to get on it. This will really add to the positive experience of the visitors and also residents. The question in the survey about how much am I willing to pay for faster internet is a loaded question bcuz the survey makes u answer it and the minimum amount one can choose is up to 20%. Minimum should of course be zero. Most employees with money or skills live outside the city limits. Reliable high speed internet access is very spotty outsdide the city limits. There is not enough competition in internet providers in Hot Springs. AT&T is highly unreliable and has established business practices which systematically steal from customers (automatically provide less than promised data rates). Resort cable provides most of the service in HS and has repeatedly won the "worst business in HS" award for customer service. We need additional options, better rates - and competition. If more is available at a reasonable price we will purchase. The commercial construction industry is becoming heavily dependent on file transfer and field documentation (Video and Documentation). At this time, Hot Springs "broadband" is limiting our opportunity for growth and our opportunity to execute our work scope in an efficient manner. Need it to attract businesses to Hot Springs !! Better broadband means a better educated population which means better jobs, higher order thinking processes, and less ignorance of self defeating habits that degrade society.

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Broadband is necessary downtown specifically. It will NOT develop without it. It is like water and sewer, an essential utility service. I plan to bring 110 temporary jobs and 70 permanent jobs this year in August. And more beyond that. But not if broadband is not available. Speed seems to be much slower and less dependable than other cities where I work and visit. Wide diffference in service from the two providers. If business is in the right location, then ATT is the better value, if not it is necessary to go with Resort Cable which is faster but more expensive because they are the only other game in town and they know it. For home users the only option with speed is Resort Cable as ATT only offers DSL at a DL speed of about 3mps which will not even allow on line bill paying without freezing up the computer. Their(Resort Cable) bait and switch from $19.95 to $54 after one year should be against the law, but it is the only choice we have now. If there was an alternative for home service I would switch tomorrow.

Solution is ATT installing fiber optic lines as they have done downtown and offering higher speeds to all or another vender with some other form of access to compete with Resort Cable First, let's acknowledge that Resort TV Cable (Wehco) has a virtual monopoly - yes, AT&T and satellite are available in certain areas but not widely enough. Resort TV Cable's record leaves a lot to be desired. They have been voted the worst company in Garland County and for good reason: their service record is terrible - just look at my test results. They promise uploads of not less than 4 mbps (mine was 2.97); and downloads of a minimum of 14 mbps (mine was 3.21): False advertising as well as lack of performance.

Were there competition, they would have to perform. I gave up cable TV because they are so terrible. I am seriously considering changing to Verizon to avoid them all together.

They don't have personnel available to answer questions, don't know why their service is down, and every other excuse to avoid responsibility. When I have asked for credit for the time the service is down, I have been scoffed at. I tried to help an elderly friend determine why her service was down but since her service is bundled using the cable for her phone, we couldn't get the technician to help. How is this possible???

Since the City authorizes their franchise, the City shares culpability. The City should insist on viable competition and not let Resort TV maintain its stranglehold. Railroads have sunk costs but have to compete with trucks so should Resort TV have to compete. Reliability is key! That is a reliable connection at a reliable speed. Telephone and Internet are way too expensive for this area Office is ok. Rates are higher here than in Little Rock and other communities. Issues lie with residential service. Have had issues with both AT&T (DSL) and Cable with fluctuation of rates. When will Fiber Optic cable be available? N/A Necessary for the downtown area to grow. We need more options here in Hot Springs for internet providers and cable TV. My kids lived in Conway and their bundle of TV and internet was much less than it is in Hot Springs. I have LR high speed through Comcast and it is 5-7 times faster than what Resort has available... I am in the Allstate Insurance business and 100% of our revenue id dependent on web access and bandwidth... We need speed.. It's 2015... Someone needs to step up... WalMart near my Buena Vista office just ran their own fiber optic cables over 1/2 mile to get their problem fixed.... My small business cannot absorb that infrastructure cost. It also shouldn't have to...

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Have U-verse at our Little Rock location and can't wait for it to be available at our Hot Springs location. Check for it every month or so but nothing yet for our address. More choice and lower costs for business accounts. There is no reason for business accounts to be prices 2 or 3 times more than a residential account.

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TABLE OF CONTENTS

TABLE OF CONTENTS ...... 2 I. EXECUTIVE SUMMARY ...... 3 Arkansas Small Business Broadband Utilization Study ...... 3 II. SMALL BUSINESS TECHNOLOGY RESOURCES ...... 5 Website Development ...... 5 Social Media ...... 6 E-Marketing ...... 7 Online Sales and E-Commerce ...... 8 Accounting ...... 9 Inventory and Point of Sale ...... 10 Cloud Computing, Information Back-Up and Security ...... 11 Search Engine Optimization (SEO) and Search Engine Marketing (SEM) ...... 12 Crowdfunding ...... 13 Mobile Applications ...... 14

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I. EXECUTIVE SUMMARY

Small business serve as critical components of local economies. In Arkansas, small businesses represent 98.6 percent of all employers and employ 50 percent of the private sector labor force. These small businesses are most likely to purchase from and sell to other local businesses, keeping wealth circulating within, instead of outside, a community. Small businesses also contribute to tax revenues, create jobs and contribute to vibrant neighborhoods where people want to live, shop, and work. Small businesses benefit from broadband adoption and use in three primary ways:

 Increase revenue via more thorough connections with existing customers, while accessing a vast marketplace of potential customers.  Decreased expenditures from operational efficiencies; and  Information sharing and access to the knowledge and experience of others, on a global scale.

The Arkansas eStrategy Report, released in March 2015, reported that these small businesses experience the weakest broadband utilization levels compared with organizations with a larger number of employees Furthermore, Arkansas’ small businesses have the least internal capacity and expertise to adopt more sophisticated internet applications, which could provide a critical avenue for business growth and sustainability.

The Hot Springs Small Business Technology Toolkit aims to increase small business adoption of broadband-powered technology in Hot Springs. While not meant to be an authoritative curriculum, nor an endorsement of the technologies, products, or companies described, it should be understood as a source of information, resources, discussion, and tools that serve as a starting point and general guide. This toolkit provides resources, strategies and recommendations for educating local business owners about the opportunities and benefits of utilizing broadband and related technologies, with the ultimate goal of increasing adoption, strengthening local businesses and, as a result, the local economy. Arkansas Small Business Broadband Utilization Study Between December 2014 and February 2015, Connect Arkansas partnered with Strategic Networks Group to survey 1,532 businesses across the state to gain an understanding of the importance of broadband to economic development in Arkansas. 1 The findings are significant: Choosing a Business Location Broadband is key to both attracting & retaining businesses.

 Two in five (39.6%) Arkansas businesses say that broadband service was “essential” in selecting their current business location.  Nearly three in five (58.3%) say broadband is “essential” for remaining in their current location.

1 http://sngroup.com/wp-content/uploads/2015/03/SNG-Arkansas-Key-eSB-Findings- 2015.pdfhttp://sngroup.com/wp-content/uploads/2015/03/SNG-Arkansas-Key-eSB-Findings-2015.pdf

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Financial Impact Broadband is currently responsible for 3 in 10 new Arkansas jobs and a quarter of Arkansas businesses’ revenues.

 In Arkansas, total job impact from broadband represents 29.4% of all new jobs.  Current level of internet application utilization accounts for 24.7% of overall revenues and costs savings, averaging 6.6% Findings across Arkansas Reveal a Business “Digital Divide”

Smaller, rural businesses need help in how to use the Internet and broadband to effectively benefit from the digital economy.

 The smaller a business, the lower the internet application utilization.  The more rural an organization, regardless of connection speed, the lower the level of utilization. Findings across Arkansas Show Gaps, Untapped Potential While the impacts are significant, there is clearly opportunity for increases in revenues, jobs, and the tax base.

 Only 40.3% of businesses sell goods and services online and just over 36.8% deliver services and content online.  Barriers are evident, as nearly half (46.4%) of surveyed Arkansas businesses state that they are not taking full/better advantage of broadband and its solutions because of a lack of in-house knowledge while 31.4% are not utilizing the internet because they don’t fully understand the benefits.

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II. SMALL BUSINESS TECHNOLOGY RESOURCES

Benefits Website Development  Increased revenue  Decreased expenditures  Information share

Website development is the creation and maintenance of an online site available to anyone using the internet. It includes the design of the site, development of the What it is content, e-commerce and marketing set-up, browser and server scripting, network security configuring and analytics.

Larger organizations and businesses may have hundreds of web developers, all working to make a website more attractive, user-friendly, secure, profitable, etc. Since business owners best understand how their business functions and can How it works identify the ways in which a website can support their particular business needs, having rudimentary web development skills can be extremely useful. In addition, free website analytics services can provide graphs, charts and other visual displays to explain the proficiencies and deficiencies of a website. Consumers, both locally and around the world, more and more expect to go online to purchase or learn about goods and services. A well-functioning website is the best way for small businesses to utilize this global trend and reach a greater market than local connections and word-of-mouth allow. Having a web presence puts a Why it matters business in front of a wider audience. Many people, especially younger generations, use the web to check-out a business prior to becoming a customer. Even a single webpage that includes basic information, hours of operation contact information and directions can help boost business appeal. Resources www.gybo.com/ar Google’s free website builder for Arkansas small businesses.

Allows a user to easily measure sales and conversions, and www.google.com/analytics provides visual insights into how visitors use and arrived on a site and how to can keep them coming back.

A free, cloud-based web development platform with over 50 www.wix.com million users worldwide.

Enables you to create a free website or blog by using a simple www.weebly.com drag-and-drop interface.

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Benefits Social Media  Increased revenue  Information share

Social media is a means of online interaction, in which people create, share, and exchange information and ideas in virtual communities and networks. Social What it is media focuses on user generated content and on frequent, high levels of interaction.

The most popular social media outlets are Facebook, YouTube, Twitter, Pinterest, and LinkedIn, all of which cater to a different demographic of social media How it works participants. Using these online applications, people interact and share via brief posts, “statuses,” comments, updates, etc. that include text, links, pictures, videos, or other media.

Social media outlets have become a quickly and largely increasing portion of interaction between people. Small businesses can capitalize on this trend by using social media to promote their brand, provide sale descriptions and incentives, Resources reach out to people with particular interests and post customer-attracting information directly to current and prospective customers. Having a Facebook and Twitter account has become standard for online businesses

Facebook for Business, offering steps to success and ways to facebook.com/business/overview employ virtual word-of-mouth marketing.

business.twitter.com/twitter- Twitter business best practices, case studies and other resources smaller-businesses

business.pinterest.com Incorporating Pinterest as a marketing tool for a business.

Detailed guide to using LinkedIn’s features for better business smallbusiness.linkedin.com prospects.

Detailed guide to using Foursquare’s location-based check in for nyc.gov/foursquare business marketing.

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Benefits E-Marketing  Increased revenue  Information share

E-marketing, or online advertising, is promotion of a product or service to a greater What it is audience via the internet.

Examples of online advertising include contextual ads on search engine results pages, banner ads, blogs, rich media (fancier hovering, movement, changing effects) ads, social network advertising, online classified advertising and e-mail How it works marketing and promotion. Many of these advertisement types are delivered by an advertisement server or network that connects businesses to sites looking to host their advertisements

E-marketing is critical to helping businesses expand their market by attracting new Why it matters customers not be reached by traditional marketing practices

Resources nyc.gov/email_marketing Guide to Email marketing from AWeber.

Googleusercontent.com Google’s small business online marketing guide.

mailchimp.com/ MailChimp email and newsletter marketing product.

constantcontact.com Constant Contact small business marketing tool.

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Benefits Online Sales and E-Commerce  Increased revenue  Decreased expenditures

E-commerce is the sales component of e-business, enabling the buying and What it is selling of a product or service to take place electronically

By creating an online catalog or ‘virtual storefront,’ businesses can allow customers to browse and shop online. With the help of a data collection and How it works communication system, and electronic funds transfer capability, customers can order and pay for a product or service online.

E-commerce sales have exploded in recent years, with more and more people having access to internet and using it to browse or shop online. In 2012 e- Why it matters commerce revenue totaled $224 billion, and is expected to reach over $360 billion by 2016. Small businesses can increase sales to new and existing customers, especially to those not in their immediate area.

Resources

www.sba.gov/content/ecommerce- The Small Business Administration provides resources to help resources businesses make the most of ecommerce.

nyc.gov/online_store How to open an online store, content provide by Shopify.

Ebay’s general informational guide, including using its services pages.ebay.com/education/index.html to market products in an easy to set-up online store format.

Paypal offers its services to expedite and simplify both sides www.paypal.com of the online transaction process.

Similar to Ebay, a global marketplace with userfriendly tools www.etsy.com to set up an online shop

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Benefits Accounting  Decreased expenditures

Using web-based and computer-based technologies to providing What it is the accounting function for a business.

Technology-based accounting can involve research, training and education through computer-based/internet-based tool kits, How it works resources, international materials, institute and company databases and financial spreadsheet tools to provide efficient decision making in business finances.

Online accounting makes bookkeeping easier and faster, and is more efficient to track than sorting through piles of paper. It Why it matters increases productivity and can simplify understanding a business’s finances and future needs.

Resources

A free invoicing and accounting software that is useful for a waveapps.com small business in terms of cost, function and accessibility. http://www.pcmag.com/article2/0,28 Descriptions of the top accounting software packages that 17,2458748,00.asp work well in small business applications.

A free invoicing tool that allows you to create an unlimited invoicejournal.com number of invoices for an unlimited number of clients, and browse, sort and search invoices from anywhere.

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Benefits Inventory and Point of Sale  Increased revenue  Decreased expenditures

A point of sale system (POS) refers to a system that manages the moment at which What it is a retail transaction is completed and a customer pays a merchant in exchange for goods or services.

A point of sale system typically includes a computer, monitor, cash drawer, receipt printer, customer display and a barcode scanner, as well as a debit/credit card reader. Some point of sale systems are cloud-based, meaning they use web-based How it works software and store information remotely via the internet, allowing instant centralization of data and access from anywhere. Product and customer information is tracked and can be easily reviewed. If you don’t have a POS system, you probably don’t know what you’re selling, when you’re selling it, and how much of it you’re selling. You don’t know your inventory counts. You can’t check sales without being in the store. You don’t know who’s working and when. Basically, making smarter business decisions is more Why it matters difficult for you to make. Web-based point of sale systems boost productivity by simplifying the inventory and purchasing process and making relevant information instantly available. They can also help businesses learn more about their customers and buying trends, knowledge that can then be used to increase revenues. Resources

A how-to-guide for choosing a POS system, with content provided nyc.gov/pos_system by ShopKeep POS.

An cloud-based iPad point of sale system popular with small shopkeep.com businesses.

An application that allows a person to accept credit card payments squareup.com via a free Mobile Card Reader that plugs into smartphones.

A free web-based point of sale software and retail management Imonggo.com system.

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Cloud Computing, Information Back-Up and Benefits  Decreased expenditures Security  Information share

Back-up of important business information and data to be easily accessed in What it is the future, and securing a business from cyber and other threats.

Security and information back-up software provide encryption, firewalls, How it works storage and instant access via the internet.

Small businesses are often too preoccupied with other things to consider back-up and information security, but information or data loss can be Why it matters extremely detrimental to a business in terms of current operations and future plans. Technology has made protecting that information cheaper and more convenient than ever.

Resources

Dropbox.com A free and easy to use online file back-up system.

A web-based storage and security software that protects a Mozy.com business’s computers and servers and the information that they contain. GoogleCloud is a platform that offers file and information Cloud.google.com storage, data analysis and other tools. Google’s cloud-based suite allows co-working and sharing google.com/intx/en/work/apps/business/ from anywhere on any device. It is simple to use and manage, and has built-in security features.

A guide to small business cyber security provided by Kalki Nyc.gov/cyber_security Consulting.

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Search Engine Optimization (SEO) and Benefits  Increased revenue Search Engine Marketing (SEM)  Information share

SEO is the process of increasing the visibility of a website in search engines. SEM is What it is marketing through search engines that works in tandem with SEO

SEO can be done by editing site content, HTML and associated coding to increase the prevalence of specific keywords and thus the overall relevance and visibility of How it works a website. Promoting a site to increase the number of inbound links also helps in SEO. Marketing is typically done directly through the search engine providers.

SEO increases site traffic and user-friendliness of the site, which directly correlates Why it matters to higher revenue. SEM increases visibility in search results to increase site traffic, public awareness and, eventually, revenue.

Resources

moz.com/beginners-guide-to- An in-depth manual for understanding SEO and how to use it seo effectively.

google.com/webmasters/ Webmaster tools to understand how Google “sees” a website.

google.com/trends/ See what people are searching for and what is trending on Google.

google.com/adwords/ Advertising via Google searches, free sign-up and pay-per-click.

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Benefits Crowdfunding  Increased revenue  Information share

Crowdfunding is the collective effort of individuals who network and pool their What it is money, usually via the Internet, to support the efforts of entrepreneurs, causes or business start-ups.

People interested in an idea, business plan or prospective or existing product How it works provide microloans or small donations to eventually reaching the total loan amount for the business or entrepreneur

Crowdfunding can be important for creative entrepreneurs or those outside the scope of regular lending channels, and is a great way to get a community involved and invested in business success. However, while crowdfunding can be a good Why it matters option for certain businesses, interested entrepreneurs should note that there are certain legal, tax, and credit score implications to be considered. In addition, crowdfunding provides capital without business training or counseling, critical components for start-up success. Resources

Kickstarter.com A funding platform for creative projects and startups.

The largest business crowdfunding platform dedicated exclusively Fundable.com to helping companies raise capital.

Since 2008, millions of contributors have empowered hundreds of Indiegogo.com thousands of inventors, musicians, do-gooders, filmmakers—and other game-changers—to bring big dreams to life.

CoFolio is a crowdfunding website that helps connect small Mycofolio.com businesses with local funders.

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Benefits Mobile Applications  Increased revenue  Decreased expenditures  Information share

A mobile website is a version of a standard website, optimized and designed to engage your customers on their mobile devices such as cell phones and tablets. What it is Since mobile devices have smaller screens and use different operating systems and browsers, your website needs to be redesigned.

Software applications for all types of things are now developed to suit mobile How it works needs. More and more businesses utilize them for their operations, and to support marketing efforts via customer deals, promotions and other incentives.

Mobile Apps are an increasingly important way for businesses to connect with people who may not use traditional computers as often as a smartphone or tablet. Why it matters The displays and functionality of many of these applications has increased their popularity as a goto for consumers. Mobile apps can also make operating a business more convenient by enabling on-the-go operations

Resources

NYC Business Solutions Guide to Mobile Websites, content Nyc.gov/mobile provided by bMobilized

Google’s service to build a mobile site and connect businesses with google.com/think/multiscreen/ developers.

biznessapps.com/ A tool to create a mobile website or application for a business.

bmobilized.com/ Offers a DIY solution for website mobilization.

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