COMPARATIVE ANALYSIS

2016 FAYETTEVILLE FIRST | COMPARATIVE ANALYSIS PAGE 2

Comparative Analysis

Location Located in the Ozark Mountains in the northwest corner of , Fayetteville is the county seat of Washington County and the third largest and the fastest growing city in the state. 1

Fayetteville is the southern most city in the area identified as the region and the Fayetteville-Springdale-Rogers, AR-MO Metropolitan Statistical Area. Fayetteville is also the largest city in the region. Fayetteville is located 25 miles from the Arkansas-Oklahoma border and 35 miles from the Arkansas-Missouri border. 2

BSA compared demographic data of the City of Fayetteville to the following Arkansas cities, in addition to the state and U.S. These locations include:

§ Bentonville, Arkansas § Conway, Arkansas § Jonesboro, Arkansas § Rogers, Arkansas § Springdale, Arkansas

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Geography The City of Fayetteville encompasses 53.85 square miles. Jonesboro is more than 30 percent larger at nearly 80 square miles and Bentonville is 40 percent smaller with 31.29 miles. 3 The following table provides additional information about the square miles of each comparative city. Note that 2010 data is the most recent information available from the U.S. Census Bureau related to total square miles.

Fayetteville Bentonville Conway Jonesboro Rogers Springdale 2010 Square Miles 53.85 31.29 45.34 79.87 37.94 41.80 Source: U.S. Census Bureau

Population When considering population among the comparative geographies, Fayetteville is the largest at 81,167 and Bentonville is the smallest at 41,939. 4 Among the comparative cities, Bentonville has the highest projected growth over the next five years at 2.83 percent. All other cities have a lower projected growth rate than the City of Fayetteville at 1.97 percent and all are higher than the U.S. at 0.75 percent and state at 0.7 percent. 5

Fayetteville Bentonville Conway Jonesboro Rogers Springdale Arkansas United States 2015 Population 81,167 41,939 64,602 74,021 61,848 74,571 3,013,667 318,536,439 2020 Population 89,478 48,229 69,795 81,527 68,007 80,265 3,121,257 330,622,575 % Change 2015 – 2020 1.97% 2.83% 1.56% 1.95% 1.92% 1.48% 0.7% 0.75% Source: Esri, Business Analyst

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Age Fayetteville has the lowest median age (28.4) although closely Median Age followed by Conway at 28.7. The cities with the highest median age are Rogers and Jonesboro at 32.6 and 32.4, respectively. Fayetteville 28.4 All cities have a significantly lower median age than the U.S. and Arkansas. 6 Conway 28.7 Bentonville 32.1 Jonesboro 32.4 Rogers 32.6 United States 37.9 Arkansas 38.2

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Income Among the comparative cities, Bentonville has the highest income across all levels. Fayetteville has the lowest median household income at $37,313 and the lowest average household income at $56,412. Springdale has the lowest per capita income at $18,877 compared to Fayetteville at $24,597. 7

2015 Income $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 Springdale Springdale Springdale Rogers Arkansas Rogers Arkansas Rogers Arkansas Fayeeville Jonesboro Fayeeville Jonesboro Fayeeville Jonesboro Bentonville Bentonville Bentonville United States United States Conway Conway Conway $0 United States 2015 Median Household Income 2015 Average Household Income 2015 Per Capita Income

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For households ages 15 to 24 years old, Fayetteville has the lowest average household income ($30,377). This is likely due to the fact that a large portion of those households are comprised of college students. When considering households 35 to 44 years of age Fayetteville has the third highest average household income, behind Bentonville and Rogers. The following chart shows average household income by age for each comparative city. 8

2015 Household Income by Age

$120,000 Fayetteville Bentonville Conway Jonesboro Rogers Springdale

$100,000

$80,000

$60,000

$40,000

$20,000 Bentonville Bentonville Bentonville Bentonville Bentonville Bentonville Bentonville Bentonville Rogers Rogers Rogers Rogers Rogers Rogers Rogers Rogers Springdale Springdale Springdale Springdale Springdale Springdale Springdale Springdale Conway Conway Conway Conway Conway Conway Conway Conway Jonesboro Jonesboro Jonesboro Jonesboro Jonesboro Jonesboro Jonesboro Jonesboro Fayetteville Fayetteville Fayetteville Fayetteville Fayetteville Fayetteville Fayetteville Fayetteville $0 Average Household Average Household Average Household Average Household Average Household Average Household Average Household Income: Age 15-24 Income: Age 25-34 Income: Age 35-44 Income: Age 45-54 Income: Age 55-64 Income: Age 65-74 Income: Age 75+

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Poverty Nearly one quarter (24.9 percent) of Fayetteville households have income below the poverty level, according to the 2009 – 2011 American Community Survey three-year estimates. Off-campus college students contribute to the higher poverty rates for Fayetteville and other college towns. In 2013, a paper titled Examining the Effect of Off-Campus College Students on Poverty Rates, found more than half of college students living off-campus, not with relatives were below the poverty threshold (students living on campus are not part of the poverty numbers and therefore do not impact the poverty rate). Total enrollment, as of Fall 2015, at the was 26,754 and on-campus housing capacity is 5,726. This results in more than 20,000 students living off campus.

The 2009 – 2011 American Community Survey three-year estimates calculated poverty rates excluding college students living off-campus. When excluding college students living off-campus, Fayetteville’s poverty rate is nearly 8 percent lower at 17.1 percent. Springdale has the highest population living below the poverty threshold at 23.1 percent, with no impact of college students living off-campus, followed by Jonesboro at 22.5 percent. The following table provides poverty levels with and without college students living off-campus for all geographies. This data is the most recent available and is not regularly updated.

The poverty level or threshold is based on the family size and composition, and identifies if a family’s total income is less than that threshold. The threshold for a household of four in the U.S. is an income of $24,250. 9

Percent of Population Living Below Poverty Threshold % of Total % of Total Population Excluding % Change in Population Off Campus College Students Poverty Rate Fayetteville 24.9 17.1 7.8 Bentonville 8.7 8.1 0.6 Conway 17.8 13.5 4.3 Jonesboro 24.1 22.5 1.6 Rogers 14.3 14.3 0 Springdale 23.1 23.1 0 United States 15.2 14.5 0.7 Source: U.S. Census Bureau

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Living Wage According to the MIT Living Wage Calculator, for a Washington County single resident a living wage is $19,982 annually, which translates to $9.61 per hour. The following table outlines annual expenses and the required income for Washington County based on household size. 10

Annual 1 1 Adult 1 Adult 1 Adult 2 Adults 2 Adults 2 Adults (1- 2 Adults 2 Adults 2 Adults 2 Adults 2 2 Adults Expenses Adult 1 Child 2 3 (1- (1- Working) 2 (1- 1 Child Children 2 Children Children Working) Working) Children Working) 3 Children 1 Child Children Food $3,022 $4,457 $6,704 $8,887 $5,540 $6,898 $8,903 $10,835 $5,540 $6,898 $8,903 $10,835 Child Care $0 $4,705 $10,687 $16,670 $0 $0 $0 $0 $0 $4,705 $10,687 $16,670 Medical $1,961 $5,783 $5,571 $5,635 $4,503 $5,571 $5,635 $5,602 $4,503 $5,571 $5,635 $5,602 Housing $5,592 $8,220 $8,220 $12,108 $6,396 $8,220 $8,220 $12,108 $6,396 $8,220 $8,220 $12,108 Transportation $4,697 $8,554 $9,859 $11,553 $8,554 $9,859 $11,553 $11,037 $8,554 $9,859 $11,553 $11,037 Other $2,253 $3,916 $4,284 $5,178 $3,916 $4,284 $5,178 $4,838 $3,916 $4,284 $5,178 $4,838 Required annual $17,525 $35,634 $45,327 $60,032 $28,910 $34,833 $39,490 $44,421 $28,910 $39,538 $50,177 $61,091 income after taxes Annual taxes $2,457 $4,996 $6,355 $8,416 $4,053 $4,884 $5,536 $6,228 $4,053 $5,543 $7,035 $8,565 Required annual $19,982 $40,630 $51,682 $68,448 $32,963 $39,717 $45,026 $50,649 $32,963 $45,081 $57,212 $69,656 income before taxes Source: MIT Living Wage Calculator

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Cost of Living Fayetteville has the highest cost of living index of 91. All cities are still below the U.S. average of 100. Bentonville has the lowest cost of living at 87. 11

Cost of Living Fayetteville Bentonville Conway Jonesboro Springdale

Overall 91 87 88 88 83 Grocery 88.5 89.9 92.8 92.1 88.5 Health 92 93 88 87 92 Housing 95 85 76 79 69 Utilities 89 87 101 83 89 Transportation 89 88 98 89 89 Miscellaneous 89 87 93 98 89 Source: Sperling’s Best Places

Educational Attainment When considering educational attainment, Fayetteville has the highest percentage of the population age 25 and older with an associate’s degree or higher at 49.5 percent. Springdale has the lowest percentage of the population with an associate’s degree or higher at 22.7 percent. With the exception of Springdale, all cities are above the average for Arkansas and only Jonesboro, Rogers and Springdale are below the U.S. average of 38.2 percent. 12 The following table provides additional data regarding educational attainment.

United Fayetteville Bentonville Conway JonesboroRogers Springdale Arkansas States Associate's Degree 5.1% 5.2% 6.6% 5.4% 5.2% 3.9% 6.1% 8.2% Bachelor's Degree 24.8% 26.8% 23.5% 17.9% 18.5% 12.7% 13.4% 18.6% Graduate/Professional Degree 19.6% 15.3% 13.1% 11.1% 8.9% 6.1% 7.3% 11.4% Total % with an Associate’s Degree or Higher (25 years and older) 49.5% 47.3% 43.2% 34.4% 32.6% 22.7% 26.8% 38.2% Source: ESRI, Business Analyst

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Racial Composition and Ethnicity When comparing racial composition of the cities, Fayetteville is the least diverse with a majority white population at 81.7 percent. Springdale is the most diverse with only 61.3 percent of the population being white and more than 20 percent reporting other race and 7.6 percent Pacific Islander. Rogers and Springdale also have a significant Hispanic population at 32.4 percent and 37.1 percent, respectively. 13

Northwest Arkansas, especially the City of Springdale, has become home to 6,000 Marshallese. Due to a rising sea level, natives of the Marshall Islands have been relocating in the area for the last three decades. If current sea rising conditions continue the island will be uninhabitable in 20 years. 14

United Fayetteville Bentonville Conway Jonesboro Rogers Springdale Arkansas States Race White Population 81.7% 78.4% 75.2% 73.2% 71.8% 61.3% 75.8% 70.9% Black/African American Population 6.4% 3.4% 17.3% 19.7% 1.8% 1.8% 15.4% 12.8% American Indian/Alaska Native Population 1.1% 1.3% 0.5% 0.4% 1.0% 1.0% 0.8% 1.0% Asian Population 3.6% 9.6% 2.0% 1.4% 3.0% 2.2% 1.5% 5.2% Pacific Islander Population 0.3% 0.3% 0.1% 0.1% 0.3% 7.6% 0.3% 0.2% Other Race Population 3.3% 4.2% 2.5% 3.1% 18.7% 23.1% 3.9% 6.7% Population of Two or More Races 3.5% 2.9% 2.4% 2.1% 3.3% 3.0% 2.3% 3.3% Ethnicity Hispanic 7.4% 9.5% 5.4% 5.5% 32.4% 37.1% 7.3% 17.6% Source: ESRI, Business Analyst

Labor Force The unemployment rate for the City of Fayetteville for the month of December 2015, the most recent data available, is 3.1 percent. Springdale has a lower unemployment rate at 3.0 percent. All other cities have a higher unemployment rate than Fayetteville with Conway being the highest at 4.0 percent, followed by Jonesboro at 3.7 percent. All comparable geographies have an unemployment rate below Arkansas and the U.S.

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Bentonville has the smallest labor force at 21,168 and Fayetteville has the largest at 43,446. 15 The following table provides additional data regarding unemployment and labor force.

As of December 2015 Fayetteville Bentonville Conway Jonesboro Rogers Springdale Arkansas United States Labor Force 43,446 (P) 21,168(P) 32,561 (P) 36,513 (P) 31,650 (P) 36,483 (P) 1,330,319 157,245,000 Unemployment (Not Seasonally Adjusted) 3.1 (P) 3.4(P) 4.0 (P) 3.7 (P) 3.2 (P) 3.0 (P) 4.6 4.8 Source: BLS

The following table provides a look at the labor force and unemployment over the last ten years. All cities have seen an increase in their labor force over the last ten years with Bentonville seeing the highest percentage increase and Fayetteville seeing the lowest percentage increase at 42 percent and 7 percent, respectively. All unemployment rates have seen significant fluctuation as a result of the 2009 recession. Annual numbers for 2015 have not been reported.

Fayetteville Bentonville Conway Jonesboro Rogers Springdale Labor Unemployment Labor Unemployment Labor Unemployment Labor Unemployment Labor Unemployment Labor Unemployment Force Rate Force Rate Force Rate Force Rate Force Rate Force Rate 2005 38,133 3.4 13,912 3.9 25,739 3.8 30,943 5.2 25,551 3.1 28,314 3.8 2006 38,990 3.6 14,404 4.0 26,517 3.7 31,465 5.2 26,449 3.2 28,980 4.1 2007 39,635 3.9 14,602 4.5 27,322 3.7 31,571 5.4 26,784 3.6 29,462 4.4 2008 39,265 4.3 14,843 5.0 27,817 4.1 31,969 5.3 27,197 4.0 29,240 4.8 2009 37,610 6.3 15,050 7.7 27,802 5.9 32,164 7.6 27,419 6.1 28,164 7.1 2010 39,332 7.0 18,251 7.3 31,716 7.8 33,530 8.4 28,582 6.9 33,240 6.7 2011 40,002 6.3 18,584 5.9 32,245 6.8 34,289 7.5 29,144 6.2 33,738 6.3 2012 40,311 5.8 19,104 5.5 32,433 6.4 34,376 7.0 29,506 5.8 33,862 5.5 2013 40,483 5.5 19,560 5.1 32,052 6.5 34,160 6.7 29,432 5.5 33,982 5.4 2014 41,542 4.6 20,096 4.2 31,777 5.5 34,404 5.5 30,295 4.9 34,821 4.4 Source: BLS

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Economic Base Analysis

Major Industries Based on employment, the five largest sectors in Washington County include government (18,996); health care and social assistance (13,380); manufacturing (12,127); retail trade (11,890); and accommodation and food services (10,405). Of the more than 18,000 employees in the government sector, 7,455 are employed by colleges, universities, and professional schools (state government). 16

The sectors with the greatest number of businesses in the county are retail trade (770); health care and social assistance (735); professional, scientific, and technical services (670); accommodation and food services (522); and construction (478). 17

When considering the location quotient, or how concentrated a sector is compared with the nation, the top sectors are management of companies (2.44); transportation and warehousing (1.87); utilities (1.43); manufacturing (1.40); and accommodation and food services (1.14). In addition to these sectors, government, retail trade and health care and social assistance also have a location quotient greater than one, which indicates a higher concentration in Washington County than the U.S. The following sectors have the highest location quotient based on number of businesses in Washington County: real estate and rental and leasing (1.32); accommodation and food services (1.31); transportation and warehousing (1.24); retail trade (1.22); and finance and insurance (1.16). 18

2015 Location 2014 Industry 2015 Jobs 2014 Quotient Businesses Location Quotient Total All Sectors 103,041 5,677

Crop and Animal Production 428 0.44 38 0.62 Mining, Quarrying, and Oil and Gas Extraction 21 0.04 5 0.23 Utilities 562 1.43 10 0.94 Construction 4,253 0.91 478 1.05 Manufacturing 12,127 1.40 221 1.07 Wholesale Trade 3,739 0.90 397 1.05 Retail Trade 11,890 1.08 770 1.22 Transportation and Warehousing 6,269 1.87 174 1.24 Information 916 0.47 87 0.95 Finance and Insurance 2,489 0.59 333 1.16

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2015 Location 2014 Industry 2015 Jobs 2014 Quotient Businesses Location Quotient Total All Sectors 103,041 5,677

Real Estate and Rental and Leasing 1,207 0.80 288 1.32 Professional, Scientific, and Technical Services 3,441 0.56 670 0.99 Management of Companies and Enterprises 3,787 2.44 39 1.07 Administrative and Support and Waste Management and Remediation Services 3,968 0.63 272 0.90 Educational Services 719 0.28 63 0.96 Health Care and Social Assistance 13,380 1.02 735 0.88 Arts, Entertainment, and Recreation 1,047 0.69 82 1.02 Accommodation and Food Services 10,405 1.14 522 1.31 Other Services (except Public Administration) 3,396 0.83 373 0.76 Government 18,996 1.12 120 0.68 Source: EMSI 2015.3 Class of Worker QCEW and Non-QCEW

The table below provides a comparison of the economic base of Washington County, as well as Benton and Washington Counties combined. The location quotient analysis indicates Washington County’s economy is slightly more diverse than the combined geography of Benton and Washington Counties. Washington County has eight sectors with a location quotient above one while the combined geography has only six sectors with location quotients above one. Management of Companies has the highest location quotient for both geographies although it is significantly higher for Benton and Washington Counties (7.46) compared to Washington County (2.44). 19 This can likely be attributed to the presence of headquartered companies in Benton County including and JB Hunt. Both geographies have a high concentration of transportation and warehousing and manufacturing. The following table provides additional details regarding employment by industry and location quotients.

Industry Washington Washington Benton and Benton and County Jobs County LQ Washington Counties Washington Jobs Counties LQ Total All Sectors 103,041 215,970 Crop and Animal Production 428 0.44 1,109 0.55 Mining, Quarrying, and Oil and Gas Extraction 21 0.04 56 0.05 Utilities 562 1.43 899 1.09 Construction 4,253 0.91 8,247 0.84 Manufacturing 12,127 1.40 23,028 1.27

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Industry Washington Washington Benton and Benton and County Jobs County LQ Washington Counties Washington Jobs Counties LQ Wholesale Trade 3,739 0.90 8,580 0.98 Retail Trade 11,890 1.08 23,611 1.02 Transportation and Warehousing 6,269 1.87 14,493 2.06 Information 916 0.47 1,763 0.43 Finance and Insurance 2,489 0.59 4,707 0.53 Real Estate and Rental and Leasing 1,207 0.80 2,167 0.69 Professional, Scientific, and Technical Services 3,441 0.56 9,792 0.76 Management of Companies and Enterprises 3,787 2.44 24,264 7.46 Administrative and Support and Waste Management and Remediation Services 3,968 0.63 9,333 0.71 Educational Services 719 0.28 2,693 0.49 Health Care and Social Assistance 13,380 1.02 22,458 0.82 Arts, Entertainment, and Recreation 1,047 0.69 2,291 0.72 Accommodation and Food Services 10,405 1.14 20,062 1.05 Other Services (except Public Administration) 3,396 0.83 6,909 0.81 Government 18,996 1.12 29,509 0.83 Source: EMSI 2015.3 Class of Worker QCEW and Non-QCEW

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The following chart provides a graphic depiction of the location quotient comparison for both geographies. Sectors are arranged by highest location quotient in Washington County.

2015 Location Quotient by 2-digit Industry

Washington County Benton & Washington Counties

8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00

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Shift Share Analysis Various economic factors may impact a change in the employment within an industry in a local economy. The overall growth of the national economy can reasonably be expected to lead to employment growth in industries across the board. As a simple example, holding other variables constant, employment in all industries will expand as population increases. National employment trends within a certain industry may also have a strong influence on the employment at the local economy level.

A technological innovation in manufacturing may reduce labor needs within a specific industry and cause decreases in employment across the United States. The good or service produced by an industry may become obsolete, which will also tend to impact the employment within the industry regardless of location.

Finally, local firms may have some competitive advantage (or disadvantage) which influences local employment growth. The local area may have preferred climate for an activity, or a reserve of a particular natural resource. It may be located on a major shipping route, or be home to a strong developed industry cluster, including related industries, high quality relevant educational programming, or many strong competing firms.

Shift-share analysis helps sort through some of these factors. Shift-share approximates the impact of the following factors on employment change:

§ Change which is a result of broad economic growth in the national economy; § Change which is a result of the industry growing (or declining) at a faster or slower pace than the national average of all industries; and § Change that is attributable to local factors (competitive advantage, related industries, etc.).

Shift share attempts to determine how much of a regional job growth can be attributed to national trends and how much is due to unique regional factors. The industrial mix effect represents the share of regional sector growth explained by the growth of that industry at the national level. The national growth effect explains how much of the region’s growth in the sector is explained by overall growth in the national economy. The sum of these two components is considered the expected change. The regional competitive effect explains how much of the change in a given sector is due to a unique competitive advantage in the region, because the growth cannot be explained by national trends in the sector or in the overall economy. Ultimately, shift share explains whether growth or decline in the region (the share) has more to do with what’s happening locally or if it is more dependent on national changes (the shift).

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The following data provides an overview of all shift share components related to job creation at the two-digit NAICS level for Washington County.

Washington County 2015 - Nat'l 2015 2020 2015 2020 Ind. Mix Expected Competitive Industry 2015 Jobs 20 % Growth Total Jobs LQ LQ Effect Change Effect Change Effect Earnings Total All Sectors 103,041 108,968 6% (613) 5,572 4,959 969 $49,948

Crop and Animal Production 428 362 (15%) 0.44 0.37 (13) 23 10 (76) $45,643 Mining, Quarrying, and Oil and Gas 21 22 5% 0.04 0.03 2 1 3 (3) $146,957 Extraction Utilities 562 528 (6%) 1.43 1.34 (33) 30 (3) (32) $92,121 Construction 4,253 4,159 (2%) 0.91 0.84 8 230 238 (333) $53,254 Manufacturing 12,127 11,815 (3%) 1.40 1.40 (1,065) 656 (409) 98 $49,469 Wholesale Trade 3,739 3,916 5% 0.90 0.90 (25) 202 177 0 $75,974 Retail Trade 11,890 12,052 1% 1.08 1.05 (231) 643 412 (249) $31,409 Transportation and Warehousing 6,269 7,163 14% 1.87 2.03 (21) 339 318 576 $52,480 Information 916 699 (24%) 0.47 0.36 (64) 50 (14) (204) $55,237 Finance and Insurance 2,489 2,465 (1%) 0.59 0.56 (37) 135 98 (122) $64,960 Real Estate and Rental and Leasing 1,207 1,231 2% 0.80 0.78 (11) 65 54 (30) $38,670 Professional, Scientific, and Technical 3,441 3,946 15% 0.56 0.58 197 186 383 123 $59,525 Services Management of Companies and Enterprises 3,787 4,090 8% 2.44 2.48 20 205 225 79 $144,859 Administrative and Support and Waste 3,968 4,253 7% 0.63 0.62 119 215 334 (49) $29,767 Management and Remediation Services Educational Services 719 812 13% 0.28 0.28 43 39 82 11 $36,341 Health Care and Social Assistance 13,380 15,047 12% 1.02 1.01 985 724 1,709 (42) $54,665 Arts, Entertainment, and Recreation 1,047 1,156 10% 0.69 0.71 15 57 72 37 $23,700 Accommodation and Food Services 10,405 11,388 9% 1.14 1.17 106 563 669 314 $16,457 Other Services (except Public 3,396 3,545 4% 0.83 0.83 (16) 184 168 (18) $25,954 Administration) Government 18,996 20,321 7% 1.12 1.16 (591) 1,027 436 889 $57,226 Source: EMSI 2015.3 Class of Worker QCEW and Non-QCEW

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In Washington County, sectors with the highest competitive effect include government, transportation and warehousing and accommodation and food services. Construction, retail trade and information have the lowest competitive effect. The highest industry mix effect is found in health care and social assistance, professional, scientific, and technical support services and administrative and support and waste management and remediation services. Mining, quarrying, and oil and gas extraction has the highest annual earnings of $146,957 followed by management of companies with $144,859. 20

Shi Share Analysis for Washington County

Ind. Mix Effect Nat'l Growth Effect Expected Change Compeve Effect

2,000

1,500

1,000

500

0

(500)

(1,000)

(1,500)

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The ultimate goal of a shift share analysis is to determine which sectors are growing as a result of national growth or because of a regional environment that positively impacts growth of the sector beyond what is seen nationally. The chart below categorizes the two-digit NAICS sectors into four quadrants based on those national and regional growth estimates. The sectors with the greatest opportunities for the Washington County include: accommodation and food service; professional, scientific, and technical services; management of companies and enterprises; arts, entertainment, and recreation; and educational services.

Health Care and Social Assistance Accommodation and Food Service Administrative and Support and Waste Management and Professional, Scientific, and Technical Services Remediation Services Management of Companies and Enterprises Construction Arts, Entertainment, and Recreation Mining, Quarrying, and Oil and Gas Extraction Educational Services

+ Nationally + Nationally - Regionally + Regionally

- Nationally Shift Share - Nationally - Regionally + Regionally Other Services (except Public Administration) Real Estate and Rental and Leasing Government Utilities Transportation and Warehousing Crop and Animal Production Manufacturing Finance and Insurance Wholesale Trade Information Retail Trade

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The following data provides an overview of all shift share components related to job creation at the two-digit NAICS level for the combined geography of Benton and Washington Counties.

Benton and Washington Counties 2015 - 20 Nat'l Ind. Mix Expected Competitive 2015 Total Industry 2015 Jobs 2020 Jobs % 2015 LQ 2020 LQ Growth Effect Change Effect Earnings Change Effect Total All Sectors 215,970 232,407 8% (799) 11,678 10,879 5,558 $56,628

Crop and Animal Production 1,109 965 (13%) 0.55 0.46 (35) 60 25 (169) $59,387 Mining, Quarrying, and Oil and Gas 56 59 5% 0.05 0.04 6 3 9 (6) $96,832 Extraction Utilities 899 836 (7%) 1.09 1.00 (52) 49 (3) (59) $96,580 Construction 8,247 8,169 (1%) 0.84 0.78 16 446 462 (540) $53,004 Manufacturing 23,028 22,076 (4%) 1.27 1.23 (2,022) 1,245 (777) (175) $50,318 Wholesale Trade 8,580 9,491 11% 0.98 1.02 (58) 464 406 506 $95,827 Retail Trade 23,611 25,312 7% 1.02 1.04 (459) 1,277 818 884 $31,083 Transportation and Warehousing 14,493 15,622 8% 2.06 2.07 (49) 784 735 395 $54,319 Information 1,763 1,469 (17%) 0.43 0.35 (122) 95 (27) (266) $58,876 Finance and Insurance 4,707 4,725 0% 0.53 0.50 (69) 255 186 (168) $67,232 Real Estate and Rental and Leasing 2,167 2,206 2% 0.69 0.65 (20) 117 97 (58) $43,494 Professional, Scientific, and Technical 9,792 11,353 16% 0.76 0.78 559 530 1,089 472 $64,917 Services Management of Companies and 24,264 26,473 9% 7.46 7.53 127 1,312 1,439 770 $134,107 Enterprises Administrative and Support and Waste 9,333 9,946 7% 0.71 0.68 280 505 785 (172) $31,989 Management and Remediation Services Educational Services 2,693 3,137 16% 0.49 0.51 161 146 307 138 $27,062 Health Care and Social Assistance 22,458 25,772 15% 0.82 0.81 1,653 1,214 2,867 446 $51,826 Arts, Entertainment, and Recreation 2,291 2,556 12% 0.72 0.74 32 124 156 109 $26,773 Accommodation and Food Services 20,062 22,681 13% 1.05 1.10 205 1,085 1,290 1,328 $17,070 Other Services (except Public 6,909 7,509 9% 0.81 0.82 (33) 374 341 260 $26,679 Administration) Government 29,509 32,049 9% 0.83 0.86 (918) 1,596 678 1,863 $54,394 Source: EMSI 2015.3 Class of Worker QCEW and Non-QCEW

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In the two-county area, the sectors with the greatest competitive effect include government, accommodation and food services, retail trade and management of companies. The lowest competitive effect is found in construction, information and manufacturing for the two-county area. Healthcare and social assistance, professional, scientific, and technical services and administrative and support and waste management and remediation services have the highest industry mix effect. Management of companies has the highest average wages at $134,107 followed by mining, quarrying, and oil and gas extraction at $96,832. 21

Shift Share Benton and Washington Counties

Ind. Mix Effect Nat'l Growth Effect Expected Change Competitive Effect

4,000

3,000

2,000

1,000

0

(1,000)

(2,000)

(3,000)

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The chart below categorizes the two-digit NAICS sectors into four quadrants based on those national and regional growth estimates. The sectors with the greatest opportunities for Benton and Washington County include: accommodation and food services; management of companies and enterprises; professional, scientific, and technical services; health care and social assistance; educational services and arts, entertainment, and recreation.

Accommodation and Food Services Mining, Quarrying, and Oil and Gas Extraction Management of Companies and Enterprises Construction Professional, Scientific, and Technical Services Health Care and Social Assistance Administrative and Support and Waste Management and Remediation Services Educational Services Arts, Entertainment, and Recreation

+ Nationally + Nationally - Regionally + Regionally - Nationally - Nationally - Regionally Shift Share + Regionally

Crop and Animal Production Wholesale Trade Utilities Retail Trade Manufacturing Transportation and Warehousing Information Other Services (except Public Administration) Finance and Insurance Government Real Estate and Rental and Leasing

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Government Employment The strong government sector presence in Washington County can be attributed to the University of Arkansas. Nearly 40 percent of jobs in the government sector are in colleges, universities, and professional schools (state government). The following table provides details about employment in the government sector in Washington County.

Washington County Government Sector Employment 2015 - 2015 - 2015 2020 2020 2020 % Jobs Jobs Change Change US Postal Service 385 354 (31) (8%) Federal Government, Civilian, Excluding Postal Service 1,566 1,677 111 7% Federal Government, Military 976 980 4 0% Colleges, Universities, and Professional Schools (State Government) 7,455 7,993 538 7% All Other Schools and Educational Support Services (State Government) 138 146 8 6% State Government, Excluding Education and Hospitals 629 662 33 5% Elementary and Secondary Schools (Local Government) 5,474 5,907 433 8% Local Government, Excluding Education and Hospitals 2,373 2,603 230 10% 18,996 20,321 1,325 7%

Source: EMSI 2015.3 Class of Worker QCEW and Non-QCEW

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For the comparative geographies outside of Benton and Washington Counties, the following table provides data related to their top industries by employment and projected job growth.

Top Industries for 2015 by Employment

Faulkner County Craighead County Arkansas United States

(Conway) (Jonesboro)

Health Care and Social Government Assistance Government Government Health Care and Social Retail Trade Government Assistance Health Care and Social Assistance Health Care and Social Assistance Retail Trade Manufacturing Retail Trade Source: EMSI 2015.3 Class of Worker QCEW and Non-QCEW Top Industries by Projected Job Growth (2020) Faulkner County Craighead County Arkansas United States (Conway) (Jonesboro) Health Care and Social Health Care and Social Health Care and Social Assistance Assistance Assistance Health Care and Social Assistance Professional, Scientific and Technical Education Services Government Government Services Administrative and Support Accommodation and Food and Waste Management and Government Services Remediation Services Accommodation and Food Services Source: EMSI 2015.3 Class of Worker QCEW and Non-QCEW

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Major Employers The following list includes companies located in Fayetteville with more than 100 full-time employees. 22

Company Business Type 5 Star Sports Calendar, LLC Printing Service Apac Central, Inc. Highway Construction Arvest Bank-Fayetteville Banks Bright Technology, LLC Polishing Service Butterfield Trail Village, Inc. Retirement Homes Chartwells Campus Dining Food Service City of Fayetteville Government Dillard's Retail Elkhart Products Company Manufacturing Fayetteville Auto Park Retail Fayetteville Boys and Girls Club Nonprofit Fayetteville Diagnostic Clinic Healthcare Fayetteville Health & Rehabilitation Center Healthcare Fayetteville Mechanical Contractors Construction Fayetteville School District Schools and Colleges HealthSouth Rehabilitation Hospital Hospitals Katherine's Place at Wedington Healthcare KeyTronicEMS Electronic Contract Manufacturers Lindsey Management Co., Inc. Service Lowe's Home Centers, Inc. Retail Marshalltown Company Manufacturing NWA Newspapers, LLC Newspapers Electric Cooperative Corporation Utilities PACMAC/Packaging Specialties Manufacturing Physicians' Specialty Hospital Healthcare

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Company Business Type Piney Ridge Treatment Center Healthcare Pinnacle Foods Corporation Manufacturing Procter and Gamble Vendors The New School Education Sam's Club #4754 Retail Source Gas Utilities Springwoods Behavioral Health Services Healthcare Standard Register Company Services Superior Industries International Manufacturing Tyson's of Fayetteville Manufacturing UAMS-Area Health Education Center-NW Schools and Colleges and Hospitals University of Arkansas Schools and Colleges US Post Office Postal Service Veteran Affairs Medical Center Hospitals Vista Health Healthcare Wal-Mart Optical Lab Manufacturing Wal-Mart Store #144 Retail Wal-Mart Store # 359 Retail Washington County Sheriff's Office County Government Washington County Court House County Government Washington Regional Medical System Hospitals Youth Bridge Healthcare

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Recent Announcements in Fayetteville In 2015, more than 150 new jobs were announced in Fayetteville. Metova, a software application development company, announced a new facility that will employ 30 people. Washington Regional Medical Center also announced an expansion that included a $60 million investment and 125 additional jobs. 23

Other Fayetteville companies that experienced growth in 2015 includes CaseStack, a supply chain management services company, which is expanding its total workforce by 95. It is estimated five of those positions will be located in Fayetteville. 24 Walmart’s largest optical lab located in Fayetteville announced a $10 million investment in their facility in 2015. 25 Marshalltown Tools has announced an expansion of their current 50,000 square foot facility. 26 The following table includes new business locations with employment of 20 or more over the last three years.

Date Opened Business Name Employment Description 1/1/2013 Vantage Point Behavioral Health 375 Psychiatric and Substance Abuse Hospital 1/1/2013 Liberty Bank Of Arkansas 21 Other Financial Investment Activities 4/1/2013 Smile System Llc 50 Offices of Dentists 9/1/2013 My Dentist 22 Offices of Physicians 2/1/2014 Snaggle Tooth Management 30 Management of Companies and Enterprises 3/11/2014 Clarity Fayetteville Operation 44 Community Care Facilities for the Elderly 5/1/2014 Industrial Construction, Inc. 20 Other Specialty Trade Contractors 5/21/2014 Les Rogers Inc. 30 Other Specialty Trade Contractors 6/1/2014 Hilton Garden 30 Traveler Accommodation 7/15/2014 Brookstone Assisted Living 38 Other Residential Care Facilities 11/17/2014 Superior Automotive Group 40 Business, Professional, Labor, Political 1/1/2015 Crain Hyundai Of Fayetteville 40 Automobile Dealers 3/10/2015 Vitamin Cottage Natural Food M 20 Health and Personal Care Stores 5/1/2015 Morningside Of Fayetteville 35 Other Residential Care Facilities 5/21/2015 Raising Cane's 50 Full-Service Restaurants 10/14/2015 Whole Foods Market 100 Grocery Stores 1/7/2016 Tyson Foods, Inc. 160 Other General Merchandise Stores 1/27/2016 Walmart #4516 70 Grocery Stores Source: Fayetteville Chamber of Commerce

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Commuting Nearly 44,000 workers are employed in the city limits of Fayetteville. Of workers in Fayetteville, nearly 70 percent or 30,522 live outside of the city. With only 13,420 workers living and working in Fayetteville, more than 16,000 leave the city for work, as illustrated by the adjacent map. The following table provides additional detail about in and out-commuting.

Fayetteville Labor Market Size (Primary Jobs) 2013 Count Share Employed in Fayetteville 43,942 100.0% Living in Fayetteville 29,852 67.9% Net Job Inflow (+) or Outflow (-) 14,090 - Fayetteville Labor Force Efficiency (Primary Jobs) 2013 Count Share Living in Fayetteville 29,852 100.0% Living and Employed in Fayetteville 13,420 45.0% Living in Fayetteville but Employed Outside 16,432 55.0% Fayetteville Employment Efficiency (Primary Jobs) 2013 Count Share Employed in Fayetteville 43,942 100.0% Living and Employed in Fayetteville 13,420 30.5% Living Outside but Employed in Fayetteville 30,522 69.5% Source: Census On The Map

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Business Climate According to CNBC’s Best States for Business, Arkansas is one of the least expensive for business and living as well as innovation. The state ranked 32nd overall based on ten factors included in the evaluation. The factors of Arkansas’s ranking are as follows: workforce, 12th; cost of doing business, 4th; infrastructure, 35th; economy, 16th; quality of life, 44th; technology and innovation, 46th; education, 35th; business friendliness, 37th; cost of living, 11th; and access to capital, 38th. 27

Tax Comparison The Tax Foundation, an independent tax policy research organization, evaluates state tax systems in the form of the Business Tax Climate Index so states can easily be compared. For 2016, Arkansas’s overall ranking is 38th. 28 The components included in the index, along with Arkansas’s rank, are shown in the following table.

Component Arkansas’ Ranking Overall Rank 38 Corporate Tax 42 Individual Income Tax 29 Sales Tax 43 Unemployment Insurance Tax 43 Property Tax 27

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Incentives

State Incentives The following table includes a summary of incentives offered by the Arkansas Economic Development Commission. 29

Arkansas Incentive Programs 30 Advantage Arkansas § Offers a state income tax credit for job creation based on the payroll of new, full-time, permanent employees. § To qualify, the proposed average hourly wage of the new employees hired must be equal to or greater than the lowest county average hourly wage. § The income tax credit is earned for a period of five years and ranges from one to four percent of payroll, depending on location within the state. Tax Back § A sales and use tax refund program available to companies participating in the Advantage Arkansas program that invest at least $100,000. § It provides a refund of sales and use taxes for building materials and taxable machinery and equipment associated with the project. InvestArk § A sales and use tax credit available to businesses established in the state for two years that invest $5 million or more in plant or equipment for new construction, expansion or modernization. § It may be used to offset up to 50 percent of the business’ sales and use tax liability on taxable purchases. § If full credit cannot be used, the remainder may be carried forward for five years. Create Rebate § A discretionary incentive that provides annual cash payments based on a company’s annual payroll for new, full-time, permanent employees. § A minimum payroll of new, full-time, permanent employees of $2 million annually is required, and the total benefit depends on the location within the state. ArkPlus § A discretionary state income tax credit program that provides tax credits of 10 percent of the total investment in a new location or expansion project. § Requires both a minimum investment and a minimum payroll of new, full-time, permanent employees hired as a result of the project, depending on location in the state.

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§ The income tax credits may be used to offset 50 percent state income tax liability in the tax year the credit is earned. § If the full credit cannot be used, the remainder may be carried forward for nine years. Quick Action Closing Fund § A $50 million fund established in March 2007 by legislation which the Governor of Arkansas may use to “seal” major economic development deals for businesses interested in locating, relocating, or expanding their facilities to Arkansas. § May possibly be used for retention in certain limited circumstances. Business and Industry Training § Provides pre-employment training for workers in new and expanding businesses in Arkansas. Program (BITP) § Eligible businesses include: manufacturing; national, corporate or regional headquarters; distribution centers; intermodal facilities; knowledge-based companies; biotechnology companies; office sector businesses; and scientific and technical services. Existing Workforce Training § Provides financial assistance to Arkansas’ businesses and eligible consortia of businesses for Program upgrading the skills of the existing workforce. § Eligible businesses include: manufacturing; biotechnology; national, corporate or regional headquarters; air transport; and certain building trades. § The following eligible businesses must derive at least 75 percent of sales revenue from out of state: computer firms; intermodal or distribution centers; office sector (non-retail only); scientific & technical services; motion picture production; and certain eligible employees. Source: Arkansas Economic Development Commission

Local Incentives

Conway The Conway Area Chamber of Commerce houses the Conway Development Corporation, Convention and Visitors Bureau and the Conway Downtown Partnership. The Conway Development Corporation has numerous deal structuring tools including the ability to provide pad-ready sites, built–to-suit lease agreements, cash incentives and other financial offerings. Additionally, the Conway Development Corporation has a long standing funding arrangement with Conway Corp, the municipal electric utility.

The City of Conway is known for incentives that are mostly tied to product development, including the purchase of land, build-to-suit leaseback agreements and upfront cash grants. 31 A nationally competitive project, Hewlett Packard announced a technology center in Conway in 2008. To

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meet the needs of the 1,200 employees, the Conway Development Corporation provided a build-to-suit lease back agreement to HP for the $28 million facility. 32

Jonesboro In 2015, the City of Jonesboro held a special election for a one-cent tax increase with 1/8 percent to be used to establish a public economic development corporation. It was estimated within 10 years the tax would generate $20 million. Residents of Jonesboro voted against the tax with 59 percent opposing. 33

The City of Jonesboro does partner with the state on incentives for certain projects, including contributing to the cost of infrastructure related to a project. The municipal-owned electric utility allows for land purchase and participation in these projects.

Incentives in Bentonville, Rogers and Springdale were also researched and no examples of these cities offering incentives were found.

Transportation Infrastructure

Road Fayetteville is located along Interstate 49, which runs north and south from western Arkansas to Louisiana and will eventually connect Canada to the Gulf Coast. Forty miles south of Fayetteville is Interstate 40, the most continuous east/west interstate in the U.S. 34

Air Northwest Arkansas Regional Airport (XNA) is located approximately 20 miles north of Fayetteville. With nearly 50 daily flights, XNA offers non-stop service to 14 destinations including Atlanta, Chicago, Los Angeles, New York and Orlando. 35

Fayetteville Executive Airport, also known as Drake Field, is a general aviation airport that provides access to the Fayetteville Business District and University of Arkansas. 36 In 2015, Drake Field averaged 1,800 flights per month, and 1,726 and 1,882 in January and February of 2016, respectively according to airport tower operation data.

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Available Property The following table includes a list of available sites on the Arkansas Economic Development Commission’s sites and buildings database in Fayetteville as of March 2016, listed from largest to smallest.

Site Name Street Address Max Size (Acres) 701 E Huntsville Rd 701 E Huntsville Rd 72.9 3480 N Deane Solomon Rd 3480 N Deane Solomon Rd 19.86 15th St and Van Buren 15th St and Van Buren 19 2205 W Hwy 112 2205 W Hwy 112 13.52 Fayetteville View Property Highway 71 B 10.38

The following table is a list of available buildings on the Arkansas Economic Development Commission’s sites and buildings database in Fayetteville as of March 2016, listed from largest to smallest.

Building Name Address Type Square Feet Former Clarion Inn 1255 S Shiloh Commercial 81,098 Park Centre Office Building 4375 N Vantage Dr Commercial 37,096 3525 S School 3525 S School Commercial 33,600 Joyce Business Park 2418 E Joyce Blvd Office 16,246 EJ Ball Building 112 W Center Commercial 14,780 32-72 W Joyce Blvd 32-72 W Joyce Blvd Commercial 13,896 1700 - 1722 N College Ave 1700 - 1722 N College Ave Commercial 13,895 3911 Bellafont Blvd 3911 Bellafont Blvd Office 13,720 1450 - 1550 E Zion Rd 1450-1550 E Zion Rd Commercial 11,858 Sunbridge Center 158 E Sunbridge Dr Commercial 11,665 Nelson's Crossing 745 E Joyce Blvd Commercial 10,928 3825 N Shiloh Dr 3825 N Shiloh Dr Commercial 10,600

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Education

Public Education When comparing the Fayetteville School District against the comparative city school districts, Fayetteville’s graduation rate is 90.3, which is lower than Jonesboro and Rogers. Expenditures per pupil are higher than other comparable cities in Arkansas at $10,487. The percentage of students eligible for free or reduced lunch in Fayetteville is lower than most cities with the exception of Bentonville, and much lower than the state average of 60.9 percent. 37 The following table provides additional detail regarding K-12 public education.

Fayetteville Bentonville Conway Jonesboro Rogers Springdale Arkansas Total Enrollment 38 9,421 15,081 9,733 5,669 14,757 20,542 474,995 Attendance Rate 94.6% 94.8% 95.9% 92.7% 95.1% 93.6% 94.4% Drop Out Rate 1.70% 0.78% 2.61% 2.35% 0.91% 1.25% 2.10% Graduation Rate 90.3% 88.1% 87.7% 94.4% 93.2% 83.8% 86.9% Expenditure Per Pupil $10,487 $9,273 $8,925 $8,841 $8,347 $9,289 $9,457 Percent of students eligible for free/reduced lunch 40.3% 27.2% 50.5% 73.9% 61.2% 67.3% 60.9% Source: Arkansas Department of Education

Higher Education and Workforce Development Assets

University of Arkansas The University of Arkansas (U of A), located in Fayetteville, is a public four-year university offering undergraduate programs in 78 different majors; 86 Master’s degree programs; 17 graduate certificate programs, as well as 50 doctoral and specialist programs. Enrollment at the U of A in the fall of 2015 was more than 26,000. 39

The U of A has identified six research strengths which are health; nanotechnology; energy and environment; art, architecture and humanities; food safety; and supply chain, retail and transportation.

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John Brown University John Brown University (JBU) is a private four-year university located in Siloam Springs, approximately 30 miles from Fayetteville. Based on enrollment, the top undergraduate programs at JBU are engineering; graphic and web design; nursing; business administration; and family and human services. Graduate degrees are offered in business, counseling, education and design. 40

NorthWest Arkansas Community College NorthWest Arkansas Community College (NWACC) is a public two-year college located in Bentonville, less than 30 miles from Fayetteville. 41 Students at NWACC can pursue an Associate degree in art; business; culinary and hospitality; computer aided drafting; computer information systems; criminal justice; education; electronics technology; environmental science; fire science; health care or paralegal. 42 Additionally, NWACC offers customized workforce training and professional development. 43

Northwest Technical Institute Northwest Technical Institute, which is located in Springdale and has served the people of Northwest Arkansas since 1975, is focused on providing educational programs to serve the training/retraining needs of students who wish to enter a recognized occupation or improve their occupational skills and knowledge.

Quality of Life In March of 2016, U.S. News & World Report named the Fayetteville the third best place to live in the U.S. The ranking is based on quality of life, job markets, value and desirability. It was noted the region is home to major employers such as Walmart and Tyson; arts and cultural amenities as well as outdoor recreation opportunities. 44

Healthcare Washington Regional Medical Center, which was founded in 1950 and is the only not-for-profit, county-owned and locally governed hospital in Northwest Arkansas, is a general medical and surgical hospital in Fayetteville with 270 beds. 45 The Women’s Center, located within the hospital and with access to all of its services, provides quality care for women, newborns, with a Level III Neonatal Intensive Care Unit, and children. The new Women's Center will include renovation of existing space as well as construction of a 100,000 plus square-foot, five-story tower on the west side of the campus adjoining the existing Women’s Center.

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Arts, Culture and Entertainment

Arkansas Razorback Sports The U of A is home to Razorback sports 17 varsity teams. Home football games are played at Donald W. Reynolds Razorback Stadium, which holds 76,000 fans. Past national NCAA champion basketball teams play in Bud Walton Arena, which has a seating capacity of 19,200. 46 Fayetteville has been called the “Track Capital of the World,” as a result of the Razorback men’s track and field team winning 42 National Championships and the women’s team holding 21 Southeastern Conference titles. 47

The Razorback baseball team has some of the highest attendance in the conference setting a record of 12,589 tickets sold in 2015 vs. Mississippi State University. 48 For the 2015 season, the Razorbacks were in the top two teams nationally for average attendance with 8,290 fans per game. 49

The LadyBack Field was the first collegiate soccer field in the U.S. used exclusively for women’s teams. The facility was renovated and expanded in 2011 to 3,900 square feet. 50

Bikes, Blues and BBQ Bike, Blues and BBQ is an annual motorcycle rally held in the fall in Fayetteville that began in 2000. 51 The event has grown from 300 riders to an estimated 40,000 in 2015. Part of the three-day event includes a poker run that benefits charity and has contributed more than $600,000 to local organizations. 52

Blair Library The Blair Library, a city public library, is an 88,000 square foot facility that has been recognized as the 2005 Library of the Year and was the first building in Arkansas to register with the U.S. Green Building Council for Leadership in Energy and Environmental Design (LEED). 53 The building is LEED Silver Certified.

Botanical Garden of the Ozarks The Botanical Garden of the Ozarks hosts more than 80,000 visitors each year. With 12 themed gardens, including the region’s only butterfly house, the Botanical Garden of the Ozarks provides entertainment, education and recreation for visitors of all age. 54 The Master Plan for the Garden includes eight gardens and five buildings. 55

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Dickson Street and Downtown Square The Dickson Street area is adjacent to Fayetteville’s downtown square and offers a variety of cultural and entertainment options. 56 Entertainment options in the area include live music, restaurants, Downtown Square gardens, Walton Arts Center and TheatreSquared. 57

Light of the Ozarks Now in its 22nd year, the Lights of the Ozarks features over 400,000 lights that transform the Fayetteville Downtown Square. The festival features pony rides, camel rides and carriage rides plus caroling and lasts until New Year’s Eve. 58

Parks and Recreation The City of Fayetteville manages over 4,200 acres, which includes 35 parks, 16 natural areas, and 17 trails. 59 The first phase of construction of the new Regional Park, which is located on a 200-acre site adjacent to more than 300 acres of city-owned woodland on Kessler Mountain, will include six soccer fields, three lighted baseball diamonds, two concession stands, and parking spaces. Other phases may include baseball fields, basketball courts, softball fields, sand volleyball courts, a large pavilion, trails, a playground, an amphitheater, and a splash pad. 60

The total shared use paved trail miles is currently 38.2 miles, with 14.52 miles of bike lanes and 15.10 bikeways. The Active Transportation Plan identifies a total of 150 miles of shared use paved trails (built and planned) so the planned (currently unconstructed) is around 110 miles. 61 In addition, the Razorback Regional Greenway is a 36-mile, primarily off-road, shared-use trail that extends from the Bella Vista Trail in north Bentonville to south Fayetteville. The trail links together dozens of popular community destinations. 62

Performing Arts The Walton Arts Center is considered the premiere performing arts center in the state and has brought artists and entertainers from around the world to Northwest Arkansas. The Walton Arts Center celebrated their 20th anniversary in 2012. 63 Currently the Walton Arts Center is undergoing a $23 million expansion that will result in two theaters with backstage space, administrative offices and a new parking deck. 64 Construction is expected to be complete in 2017. 65

TheatreSquared is a year-round professional theatre that was recognized in 2011 as one of the nation’s ten most promising emerging theatres. 66 In its tenth season, TheatreSquared has announced a new $25 million facility that will open in 2019. 67

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Festivals Fayetteville is home to many festivals and special events including but not limited to the following: 68

§ Block Street Block Party § Dive-In Movies at Wilson Pool § Earth Month § Fayetteville Foam Fest § Fayetteville Race Series § Fayetteville Roots Festival o First Thursday o Gulley Park Summer Concert Series o Le Chocolate Feast o Mardi Gras o NWA Cheese Dip Classic

Entrepreneurship Assets

Arkansas Research & Technology Park The Arkansas Research & Technology Park (ARTP) has the mission to stimulate a knowledge-based economy in Arkansas through partnerships. Corporate partners of ARTP have access to talent and technology through the faculty and facilities at the U of A. 69 ARTP consists of two campuses providing support for research and development as well as assembly manufacturing. There are approximately 34 public/private affiliates of the ARTP. 70

Startup Junkie Consulting Located on the Fayetteville Square, Startup Junkie Consulting supports small businesses and startups in the following industries retail, consumer packaged goods, supply chain, food and data analytics. Support offered by Startup Junkie includes mentorships, networking and educational programing as well as facilitating capital access with banks, alternative lenders, venture capital and angel groups. 71

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Hayseed Ventures Hayseed Ventures is described as a company that turns “startups into businesses.” 72 Hayseed Ventures works with early stage startups to refine their initial concepts in order to build a minimum viable product and provide support through series A funding. Areas of expertise for Hayseed Ventures are customer acquisition and conversion; development and web design; design and branding; and business strategy and data analysis. 73

Northwest Arkansas Innovation Hub It was announced in the summer of 2015 that the Northwest Arkansas Innovation Hub would be established on the Fayetteville Square, spearheaded by the Fayetteville Chamber. The Innovation Hub is meant to be a space that enables innovators and entrepreneurs and will include a maker space or Fab Lab, which will house “maker” machinery and equipment for invention and prototyping, including a CNC Routing Table, 3D printers and laser-cutting tools catering to entrepreneurs startup companies, as well as artists and designers. 74

Sustainability

STAR Community In August of 2014, the City of Fayetteville received recognition as a 3-STAR community. STAR Communities is a nonprofit organization that evaluates and certifies sustainable communities. 75

LEED Certification All civic buildings in the City of Fayetteville constructed after 2011 are required to be LEED Certified. The Fayetteville Public Library is LEED Certified. 76

Weatherization and Efficiency in City Buildings The city plans to utilize utility bill management software to establish building and overall energy use baselines and track normalized changes as improvements are implemented. There are also plans to implement weatherization or efficiency projects for City buildings utilizing $40,000 in CIP for Building Energy Efficiency.

Property Assessed Clean Energy (PACE) Fayetteville’s Energy Improvement District No 1 and Arkansas Advanced Equity Energy (A2E2) offer businesses in the city financing for energy efficiency upgrades through Property Assessed Clean Energy (PACE). The city is also working with Fayetteville Energy Improvement District No 1 and Arkansas Advanced Equity Energy (A2E2) to advertise and grow Fayetteville’s PACE Program and to expand PACE to other communities.

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Solid Waste Reduction, Diversion and Recycling Master Plan The City of Fayetteville is working with the Recycling and Trash Division and community stakeholders to develop a master plan that will help the City move towards a goal of 80 percent waste diversion. Pilot projects are underway to determine effectiveness of types of recycling collection services and solid waste composting.

Green House Gas Mitigation The City of Fayetteville has plans to track and report community greenhouse gas emissions with a goal of achieving 80 percent reduction in community-wide greenhouse gas emissions.

Renewable Energy The city works with Ozarks Electric Cooperative and Southwestern Electric Power Company (SWEPCo) to identify and invest in renewable energy generation facilities as a way of stabilizing the City’s energy costs, offsetting the City’s Carbon Footprint and promoting market development.

Bicycle Friendliness Fayetteville is also pursuing recognition as a Bicycle Friendly Community with a goal of achieving a silver designation. In addition, the city is working with the U of A to develop a community bike share program.

Smart Parking Currently a parking and mobility study is being conducted that will analyze parking inventory and utilization, as well as identify strategies to promote walkability and downtown redevelopment.

Invasive Species The city also provides invasive species education and awareness to Fayetteville citizens and developers, and has an internal policy related to invasive species procurement and removal.

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Endnotes

1 http://www.fayetteville-ar.gov/902/About-Fayetteville and http://www.fayettevilleflyer.com/2015/05/28/fayetteville-is-the-fastest-growing-city-in-arkansas-census-estimate-says/ 2 http://www.fayettevillear.com/stats-and-demographics.html 3 U.S. Census Bureau 4 Esri, Business Analyst 5 Esri, Business Analyst 6 Esri, Business Analyst 7 Esri, Business Analyst 8 Esri, Business Analyst 9 https://www.census.gov/hhes/www/poverty/methods/definitions.html 10 http://livingwage.mit.edu/counties/05143 11 : Sperling’s Best Places 12 Esri, Business Analyst 13 Esri, Business Analyst 14 http://www.nwaonline.com/news/2015/dec/06/between-the-lines-an-approaching-flood-/ 15 Bureau of Labor Statistics 16 EMSI 2015.3 Class of Worker QCEW and Non-QCEW 17 EMSI 2015.3 Class of Worker QCEW and Non-QCEW 18 EMSI 2015.3 Class of Worker QCEW and Non-QCEW 19 EMSI 2015.3 Class of Worker QCEW and Non-QCEW 20 EMSI 2015.3 Class of Worker QCEW and Non-QCEW 21 EMSI 2015.3 Class of Worker QCEW and Non-QCEW 22 http://www.fayettevillear.com/major-employers.html 23 http://web.fayettevillear.com/news/newsarticledisplay.aspx?ArticleID=363 24 http://web.fayettevillear.com/news/newsarticledisplay.aspx?ArticleID=237 25 http://talkbusiness.net/2015/05/wal-mart-eyes-expansion-opportunities-with-its-optical-vision-services/#.Vh_TGtKrRhF 26 http://arkansas.justgoodnews.biz/2015/02/09/marshalltown-company-right-tools-expansion/ 27 http://www.cnbc.com/2015/06/24/top-states-for-business-32-arkansas.html 28 http://taxfoundation.org/article/2016-state-business-tax-climate-index 29 http://www.arkansasedc.com/incentives/incentives 30 http://arkansasedc.com/site-selectors/incentives 31 http://www.manufacturing.net/news/2008/06/hp-hiring-1200-in-arkansas 32 http://www.developconway.org/news/hewlett-packard-locates-technology-center-in-conway 33 http://www.kait8.com/story/30487374/poll-results-are-in-for-jonesboro-special-tax-election 34 http://www.nwacouncil.org/pages/transportation/ 35 http://www.flyxna.com/airlines-flights/airlines/ 36 http://www.nwacouncil.org/pages/transportation/ 37 Arkansas Department of Education 38 https://app3.doe.k12.ga.us/ows-bin/owa/fte_pack_enrollgrade.entry_form 39 http://www.uark.edu/about/quick-facts.php 40 http://www.jbu.edu/about/facts/ 41 https://www.nwacc.edu/web/presidentsoffice/about 42 https://www.nwacc.edu/web/academics/programs 43 https://www.nwacc.edu/web/workforce-economic-development/index.php 44 http://realestate.usnews.com/places/arkansas/fayetteville

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45 http://health.usnews.com/best-hospitals/area/ar/washington-regional-medical-center-6710195 46 http://www.experiencefayetteville.com/do/item/456-razorback-sports 47 http://www.uatrav.com/sports/article_820e6840-7cb5-11e3-bee6-001a4bcf6878.html 48 http://www.arkansasrazorbacks.com/baseball-attendance-records/ 49 http://www.arkansasrazorbacks.com/baseball-shatters-attendance-marks-in-2015/ 50 http://www.arkansasrazorbacks.com/razorback-field/ 51 http://www.experiencefayetteville.com/do/item/39-bikes-blues-bbq 52 https://www.bikesbluesandbbq.org/about/event-history/ 53 http://www.experiencefayetteville.com/do/item/40-blair-library 54 http://bgozarks.org/ 55 http://bgozarks.org/learn/growing-toward-2028/ 56 http://www.experiencefayetteville.com/do/item/44-dickson-street-downtown 57 http://www.experiencefayetteville.com/do/item/44-dickson-street-downtown 58 http://thelightsoftheozarks.com 59 http://www.fayetteville-ar.gov/161/Parks-Lakes-Gardens 60 http://www.fayettevilleflyer.com/2015/03/19/fayetteville-breaks-ground-on-regional-park/ 61 http://www.fayetteville-ar.gov/ArchiveCenter/ViewFile/Item/1143 62 http://www.nwatrails.org/trail/razorback-regional-greenway/ 63 http://www.waltonartscenter.org/about/general-information/mission-and-history/ 64 http://www.waltonartscenter.org/expansion/ 65 http://www.waltonartscenter.org/about/general-information/mission-and-history/ 66 http://theatre2.org/about/ 67 http://www.americantheatre.org/2016/02/17/arkansass-theatresquared-the-middle-of-somewhere/ 68 http://www.fayetteville-ar.gov/1193/Special-Events and http://www.experiencefayetteville.com/do/item/46-festivals 69 http://www.uark.edu/ua/artp/partnering.html 70 http://www.uark.edu/ua/artp/ataglance.html 71 http://www.startupjunkieconsulting.com/what-we-do/ 72 http://www.arkansasbusiness.com/article/105245/hayseed-ventures-aiming-for-6-million-investment 73 http://www.hayseedventures.com/#about 74 http://www.nwabusinessjournal.com/14866/center-of-it-all-innovation-hub-makes-its-way-to-fayetteville-square 75 http://www.starcommunities.org/certification/ 76 http://www.fayetteville-ar.gov/1201/Find-Green-Buildings