THE STATE’S BUSINESS NEWS AUTHORITY. Eyes on One Bank Layton “Scooter” Stuart, whose home Arkansas was raided by federal agents, isn’t the only former executive of One Bank & Trust whose dealings are under Business investigation. [P14] UPDATED DAILY: ArkansasBusiness.com VOL. 30, NO. 7 FEBRUARY 18-24, 2013 $1.50 Local Focus INSIDE Keeps Radio Profitable By Kate Knable [email protected]

Local radio still lives. On Dec. 8, KEWI-AM, 690, of Benton aired the Class 3A State Championship football game pit- ting Glen Rose High School against Harding Academy. Rick Niece Due to heavy traffic to its web- and Higher site, KEWI’s “online stream Education shut down about the time we hit Th e retiring president about 1,500” of the University of online listen- the Ozarks in Clarks- ers, said Grant Grant ville says colleges are Merrill, KEWI’s Merrill working to adapt to a owner and manager. changed learning envi- Merrill bought KEWI, the only ronment. [P22] radio station operating from Saline County, in 2011, joining an indus- try that has managed to remain Award Finalists profitable in Arkansas despite competition from satellite radio, Whispers [P3] Business of the Year – Category I Nonprofi t Organization of the Year limitless iPod playlists and build- A giant bank is w American Data Network presented by AT&T your-own online stations such as w Buff alo Outdoor Center w Bethlehem House Inc. heading to LR. Pandora. w Community Bankers Merchant Services w Cystic Fibrosis Foundation Arkansas Chapter Merrill rents KEWI’s space at w Haag Brown Commercial Real Estate & Development w Economics Arkansas 115 S. Main St. in Benton, where w PC Assistance w Museum of Discovery the station has been for 15 years. w Our House His modest office features ragged Business of the Year – Category II chairs around his desk in the build- w All-Clean USA Nonprofi t Executive of the Year ing’s foyer and a small radio studio. w Kaufman Lumber Co. presented by AT&T His station isn’t rated by radio w PrivacyStar w Matt Dozier, EAST Initiative data aggregator Arbitron, so Merrill w US Compounding w Brian Itzkowitz, Goodwill Industries of Arkansas has no way to know how many lis- w Winter Moving & Storage w Christie Jordan, Food Bank of Northeast Arkansas teners are tuning in to his terres- w Christina Littlejohn, Arkansas Symphony Orchestra trial radio signal at any time. But Business of the Year – Category III w Peggy McCall, Miracle League of Arkansas he does know from Web streaming w Arkansas Surgical Hospital data and listener and advertiser w Arnold & Blevins Electric Co. Business Executive of the Year feedback that if fans can’t attend w Jan-Pro of Arkansas w Sam Alley, VCC a big game or Saline County resi- w Tankersley Food Service w Don Cavenaugh, Cavenaugh Auto Group dents are wondering about severe w TME Inc. w Kevin Lamb, Advanced Tissue weather, then a good many of w Brett Overman, All-Clean USA w Jerry Spears, B&B Solutions RADIO CONTINUED ON PAGE 10

Get tickets to Arkansas’ premier business awards program, Feb. 26 Visit ArkansasBusiness.com/ABOY RemembeR ing Russell Gunter 1950-2013

It is with heavy hearts that Cross, Gunter, Witherspoon & Galchus, P.C. announces the passing of colleague and friend Russell Gunter. Russell was a founding member of CGWG where he practiced labor and employment law and served as the firm’s managing director for 16 years. Blessed with everything but a long life, he was a loyal friend, patient mentor and trusted advisor whose integrity earned him not only the respect of clients but also that of opposing counsel. His quiet demeanor, analytical skill, positive attitude and strong work ethic were hallmarks of his personality, both within the legal profession and among friends.

His gentle presence will be missed by all who knew him. Arkansas Business February 18, 2013 3

Wells Fargo Lands in WLR Think back to November, when Whispers ried with three kids and has been involved in Arkansas noted that a Wells Fargo & Co. corporate jet had youth basketball and Cub Scouts. Business spent several days parked at Searcy Municipal According to a statement from the bank, Airport for reasons unknown. “strong growth in Arkansas” has inspired Wells Now hear this: Fargo to “enhance the financial services it pro- The fourth-largest bank in the country, vides middle market companies” here. Whispers which has to this point limited its lending pres- “In addition to traditional commercial ence in Arkansas to three former Century Bank banking services, technologically advanced For daily news, register at ArkansasBusiness.com/Enews branches in Texarkana and Ashdown, is open- treasury management and asset-based lend- ing what it calls a “commercial banking office” ing, the Little Rock team will offer specialized Competitive Remedy either side of a $3 million trans- in west Little Rock this month and is bringing lending for government, food and agriculture,” Another independent phar- action in North Little Rock. BBR in an experienced hand from St. Louis to run it. the company said. macy is surfacing in the wake of Oil IV LLC, led by David Barker, That would be Kevin Handley, a loan team last year’s USA Drug chain sale to purchased the Kum & Go project manager and senior relation- Walgreens. at 8801 Maumelle Blvd. from KG ship manager whose region Acquisition Inquisition Two former USA Drug phar- Store 153 LLC. has included both Missouri Last fall, when that jet was parked at Searcy, macists, Laura Lumsden and w Bailey’s Tunnel Wash LLC, and Arkansas. one of its passengers was rumored to have told Philip Way, are opening Remedy led by John Bailey, bought the w He’ll be setting up shop a local that the group was on a bank-buying Drug at 8511 W. Markham St. on Boomerang Car Wash project at temporarily in the Wells Fargo mission. And, of course, there could have been Feb. 19. 7900 Highway 107 in Sherwood Advisors building at 12921 some truth to that. The 4,000-SF location is in for $2.4 million. Seller: 1908 Cantrell Road. But Jack Milligan, editor of Bank Director space that formerly housed Investments LLC, led by Mark Kevin w He intends to hire two magazine, noted last month that “traditional Paul Bunyan’s big and tall men’s McCaslin. Handley “relationship managers” and acquirers like JPMorgan Chase & Co., Bank of clothing and accessories. w Meanwhile in west Little one “relationship administrator.” (The sound America Corp. and Wells Fargo & Co.” sim- Remedy marks the first Rock, Kanti and Nila Sharolia you hear is 100 commercial lenders printing ply haven’t been buying. One good reason, new independent pharmacy to acquired an 11,694-SF Hickory out their resumes.) Milligan wrote, is that “JPMorgan and Wells crop up in Little Rock since the Hills manor from Henrietta w He will move that team to separate offices Fargo are dangerously close to the 10 percent Walgreens acquisition and con- Williams for $1.6 million. in mid-2013, but it seems no permanent home nationwide cap on bank deposits — and Bank of solidation of USA Drug stores. w Full Harvest Agricultural has been settled on. (Leasing agents, start your America actually exceeds it by 2.62 percent … .” REIT II Inc. of Clarksdale, Miss., cellphones.) It may be that Wells Fargo will be content purchased 415 acres in south- Handley has a bachelor’s degree from with three branches in southwest Arkansas Seven-Digit Transactions east Pulaski County for $1.5 mil- Missouri State University and an MBA from and a commercial loan production office in Did someone say million- lion. Most of the farmland is at Washington University at St. Louis. He’s mar- Little Rock. n dollar deals? w Iowa City ventures were on WHISPERS CONTINUED ON PAGE 4 OUTRAGEOUS HONOREES

Greg Hatcher Amy Hill-Imler President and CEO | The Hatcher Agency Celebrated Arkansas Artist Thursday, March 14 • 5:30 p.m. Pulaski Technical College • Campus Center Grand Hall • 3000 West Scenic Drive • North Little Rock

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WHISPERS CONTINUED FROM PAGE 3 Simmons First National Corp. of Pine Bluff earned $27.7 million on assets of the southwest corner of Allison Loop and $3.53 billion. Allison Road. Publicly traded First Federal Seller: Webb Family Farm LLC, led by Bancshares of Harrison hadn’t issued an Marilyn Webb Buffalo and Jim Webb. earnings statement as of Thursday, but its w Pine Forest Apartments LLC bought bank earned $1.28 million, according to a its namesake 28-unit project at 301 call report filed with the Federal Financial N. Pine Forest Drive in Maumelle for Institutions Examination Council. $1.4 million. Sellers: Glenn and Leanna Meanwhile, the two biggest private- McClendon. ly owned banks chartered in Arkansas The new ownership group includes combined for more profit than all four Jason Bolden, C.W. Freedman, Paul publicly traded banks put together: Sheptow, Paul M. Sheptow Revocable Arvest Bank of Fayetteville earned Trust and Bradford Family Revocable $98.1 million on assets of $13.2 billion; Trust, led by Robert Henry Bradford Jr. and and his wife, Sandra. The earnings champion, First Security Bank of Searcy, reported net income of almost $98.4 million on assets of $4.03 bil- Nursing Home Suit lion — almost identical A pharmaceutical company is suing to Bank of the Ozarks’. a handful of nursing home management And that doesn’t companies for allegedly trying to wiggle include any profit from out of a $2.5 million debt. First Security Bancorp’s CP Acquisition Corp., doing business Little Rock bond house, in Little Rock as Central Pharmacy Co., Crews & Associates, so By using what’s flowing filed a lawsuit in Pulaski County Circuit it’s entirely plausible Court over the alleged fraud. According Reynie that Reynie Rutledge to the suit, Central Pharmacy was pro- Rutledge and family cleared $100 through our rivers, reliable, viding pharmaceutical supplies to about million last year. a dozen nursing homes, all of which were Now, other bankers will be fast to affordable power will always allegedly owned directly or indirectly by note that most of First Security’s income Joey Wiggins. — $88.6 million — came not from loans Wiggins is the owner of ConvaCare or fees but from “tax-exempt securities be a reality in Arkansas. Inc., one of the companies named in issued by states and the suit. ConvaCare manages Byrd Haven political subdivisions in When it comes to powering the future, Nursing Home in Searcy and Rolling Hills the U.S.” the right mix ma ers. Nursing Center in Batesville. While we’re digging Central Pharmacy claims that attor- around in the FFIEC call The smart solution to providing the power we need is to do ney Buck Gibson, agent of process for the reports, we’ll throw in what’s right for the environment and the people we serve by defendants, on Nov. 30 announced that Wallace Fowler’s Liberty all of the nursing homes were, or were Bank of Arkansas. It using a balanced combination of resources. In addition to about to be, insolvent, and would be Wallace had 2012 net income of utilizing wind, solar energy, biomass, natural gas and the transferred to third parties. At the same Fowler $23.4 million on assets time they would terminate their agree- of $2.83 billion. cleanest coal technology available, our three run-of-the-river ments with Central Pharmacy, effec- hydroelectric generating stations continue to provide reliable tive Dec. 31. The problem was that the LRRA’s New Awards energy at the lowest possible cost to our communities. And companies allegedly still owed Central Pharmacy a total of about $2.5 million. Did you hear the Little Rock Realtors we’re preparing for the future by investing in the development Other companies named in the suit Association is starting its own awards of new nuclear technology. It’s this mix of resources that will were Fountain Lake Health & Rehab Inc., program? Gyman LLC, Maumelle Health Services LLC, The LRRA is opting out of the keep us ahead of Arkansas’s energy needs and lead the way for Northcare LLC, Senior Care Inc., Southpoint Arkansas Realtors Association’s Awards a balanced approach to providing reliable, affordable power. Health LLC, Rolling Hills H.C. Inc., Wagnon for Excellence program. Libby Sheard, an Place Health Facilities LLC, Woodland executive officer at the LRRA, said the Health LLC, Trumann Health Services LLC ARA needed to “make some changes” to and Skilcare Health Services LLC. balance the larger LRRA with the smaller Gibson has since filed to deny Central boards in Arkansas. Pharmacy’s allegations, including both “So it was just better for us to cre- the outstanding debt and Wiggins’ ate our own awards ceremony,” Sheard involvement with the management com- said. “It just simply provides more of an panies. opportunity for our commercial, resi- Gibson told Whispers that he could dential and property managers to par- not comment on the suit. ticipate in the program.” The new program will be called the Realtor Awards for Distinction. $98 Million x 2 The ARA, for the record, has stated Arkansas’ largest publicly traded that it supports the move. banks have announced their profits for The LRRA “made a decision to have 2012, and they were impressive: their own recognition program to Bank of the Ozarks Inc. of Little Rock include some criteria that the ARA may earned $77 million on assets of $4.04 no longer include,” ARA President Bill billion; Olson said in a statement. “The ARA is Visit themixma ers.com to find out more. Home Bancshares Inc. of Conway, hold- completely supportive of their decision ing company of Centennial Bank, earned and recognizes that local boards across $63 million on year-end assets of $4.24 the state may choose to have their own billion; awards recognition program.” WHISPERS Arkansas Business February 18, 2013 5

768 That’s the number of current and for- mer hourly employees at ConAgra Foods’ Get daily updates Russellville plant who decided to partici- pate in a federal lawsuit against the food manufacturer. A court watcher said the case could from have the highest number of plaintiffs in Arkansas who have decided to opt into You’ll be the first to know the a collective action lawsuit. A collective best places to eat, to shop, action is similar to a class-action com- plaint but with a few key differences. and to play in Arkansas. One of those: A person who doesn’t join the case can file his own lawsuit later. In a class-action case, however, those who /inarkansas fail to add their names to the lawsuit lose their right to sue over the issue. @inarkansasblog In the ConAgra case, the plaintiffs allege they weren’t paid for the time it took them to put on their protec- tive equipment or for taking it off after their shifts at the prepared foods plant, according to the lawsuit, which was filed in U.S. District Court in Little Rock. There are about 1,150 hourly employees UALR Grads at the plant. The plaintiffs said in the lawsuit that they should have been paid for the time spent in connection with putting on the gear because it was “indispensable” to @ Work their work. The plaintiffs are seeking wages and • Wright, Lindsey & Jennings • Aristotle • Nabholz Construction • Caterpillar • LM Windpower • KARK overtime pay for the work, according to the lawsuit, filed by attorney Josh Sanford • Baptist Health • Entergy • American Chemistry • FIS • Molex • Stephens Inc. • Acxiom • UAMS • AT&T of Little Rock. The lawsuit didn’t list a specific dollar amount for how much • KTHV • Jones Productions • Clinton Presidential Library • eStem High School • Searcy Daily Citizen they were seeking. • BKD • Welspun • Arkansas Supreme Court • Southern Bancorp, Inc. • Northwestern Mutual • VCC ConAgra denied any wrongdoing in its court filings and asked that the case • Lockheed-Martin • Delta Trust & Bank • Historic Arkansas Museum • Ally Financial • Windstream • St. Vincent be dismissed. Infi rmary • Verizon • ESPN • Mitchell Williams • U.S. Marshals Museum • Arkansas Attorney General’s Offi ce • Hewlett-Packard • U.S. Army • Arkansas Democrat-Gazette • Southwest Power Pool • Mosaic Templars Cultural Atwitter About Twitter Center • Little Rock School District • Raytheon • U.S. Bank • Walmart • The Communications Group • Arkansas Vala Afshar, the chief marketing officer and chief customer officer of Enterasys Blue Cross and Blue Shield • Frazier, Hudson & Cisne • Arkansas Governor’s Offi ce • Arkansas History Commission Networks and a Huffington Post blogger • Central Arkansas Library System • William Jeff erson Clinton Birthplace National Historic Site • KATV recently opined about the most social chief information officers using Twitter. • BAE Systems • Heifer International • Arkansas Department of Information Systems • Arvest Bank • Pulaski Landing on his list of “20 Rising Star CIOs on Twitter” was David Hinson, CIO County Special School District • Schueck Steel • Friday, Eldredge and Clark • Clinton School of Public of Hendrix College in Conway. Service • North Little Rock Police Department • Arkansas Children’s Hospital • Arkansas Business • Arvest Hinson, also an executive VP at the college, has an impressive tech resume Mortgage • North Little Rock School District • Arkansas Department of Human Services • MacArthur and a history as a creator of mobile Museum of Arkansas Military History • Arkansas State Police • Central High School • Arkansas Department apps, including Cheap Gas!, available on iTunes. n of Workforce Services • Williams and Anderson • Little Rock Central High National Historic Site • Arkansas Times • KLRT • Arkansas Historic Preservation Program • State of Arkansas • Mainstream Technologies • Old State House Museum Make a diff erence in your career. ISSN: 1053-6582. USPS Number 730-650

Font specs (full size as used in Page One nameplate): Apply Now! ualr.edu/success Vol. 30 Number ARKANSAS 7, BUSINESS:Feb. Antenna 18 Condensed - Feb. Bold 80 pt24,. 2013. Arkansas THE STATE’S ... : Antenna Condensed Regular 10 pt. Color specs: C82 M40 Y10 K0 Business is publishedRule weight: 14 pt weekly for $64.95 per year, Leading: custom $94.95 per yearAlignment: out fl ush right of state, 6 months in state for Dominik Mjartan $39.95, 6 months out of state for $69.95 and $194.95 Senior Vice President foreign per year (including Canada) by Arkansas Business Publishing Group, 122 E. Second St., Little Rock, AR 72201, P.O. Box 3686, Little Rock, AR 72203, (501) 372-1443, facsimile (501) 375-7933; Periodical postage paid at Little Rock, AR. Postmaster, send address change to Arkansas Business, P.O. Box 3686, Little Rock, AR 72203. Copyright 2013 Arkansas Business Limited Partnership. UNIVERSITY Subscribe Today: OF ARKANSAS 501-372-1443 888-322-6397 AT LITTLE ROCK arkansasbusiness.com/store 6 February 18, 2013 Arkansas Business Media Bettis Named Publisher ArkansasWeekly Business Of Arkansas Business Mitch Bettis, regional publisher for Since 2011, Bettis has overseen Report publicly traded GateHouse Media of GateHouse Media’s 19 print and digi- For daily news, register at ArkansasBusiness.com/Enews Fairport, N.Y., has been named publish- tal products in 10 communities in er of Arkansas Business Arkansas and northern Louisiana. In and general manager that role, he led the publishing, edito- Education of Arkansas Business rial and sales efforts of more than 100 Publishing Group. staff members. “We’re so happy to From 2009-11, he was general man- have Mitch Bettis join ager of GateHouse’s Lake Media opera- Gearhart Names Wyrick the state’s leading niche tions in central Missouri, leading sales publishing company,” and operations for 26 print and digital Olivia Farrell, ABPG Mitch publications. To Advancement Post chairman and CEO, Bettis A 1990 graduate of Ouachita Baptist said in announcing the hire last week. University in Arkadelphia, Bettis University of Arkansas Chancellor “With experience on all sides of the busi- received a master of science degree in G. David Gearhart announced Chris ness — editorial, sales, print, digital — 1992 and a doctor of education degree Wyrick as the new vice chancellor for Mitch is a great fit. I know our team can’t in 1994 from Oklahoma State University. advancement during a news conference wait to start working with him.” From 2007-09, he was an assistant Wednesday. Bettis, who begins his duties at ABPG professor of mass communication at Gearhart called Wyrick, currently on Feb. 25, brings more than 29 years of Ouachita Baptist University, teaching the head of the Razorback Foundation, experience in management and publish- courses in public relations, advertising, “a superstar.” Before joining the founda- ing to his new role at Arkansas’ leading multimedia communication, news and tion in September, Wyrick worked for niche publishing group. At ABPG, he’ll photojournalism. more than four years in the UA athletic manage the daily operations of a com- Since 2001, Bettis and his wife, department. Chris Wyrick, who joined the Razorback pany that produces 20 weekly, monthly, Meg, have been the owners of Freeman Wyrick, who has no official start date, Foundation in September, is the new vice chan- semiannual and annual titles, as well as Publications Inc., which produces a week- came to Arkansas in 2008 after stops cellor for advancement. [PHOTO BY BETH HALL] contract publications and websites. ly newspaper for northwest Colorado, the at South Carolina and Vanderbilt. He Bettis will also be publisher of Rio Blanco Herald Times, and a local helped oversee the Razorback Seat Value more than $4 million in 2012-13. Arkansas Business, founded in 1984. hunting magazine. Plan (R.S.V.P.), which resulted in 2,600 The UA announced last week that Arkansas Business covers business news Bettis and his wife have three chil- new Razorback Foundation members Gearhart had asked auditors for the in Arkansas in a weekly print newspaper dren, Jackson, 10, Addy, 5, and Elli, 2. and generated an additional $6.5 million Arkansas General Assembly and the UA and on a daily website, ArkansasBusiness. ABPG is a niche publishing group with in athletic department revenue. System office to review advancement’s com. a Web development company, FLEX360. Gearhart began the search for a new overspending, which Arkansas Business “I’m excited about joining ABPG,” With 73 employees, ABPG produces 20 director of advancement late in 2012. first reported in December. Bettis said. “The company is known for publications, including magazines and Brad Choate held the position until being Advancement, which houses fund- its portfolio of quality print and digital websites. stripped of administrative duties when raising, communications, marketing, products, and I look forward to being a Its products include Arkansas an internal audit revealed advancement special events and the World Trade Center part of the team.” Business; Little Rock Family, a monthly overspent by more than $3 million in in Rogers, includes 154 employees. He arrives at ABPG just as the com- parenting magazine launched in 1994; 2011-12 and was on track for a deficit of — Chris Bahn pany is completing a 4,100-SF expansion and Little Rock Soirée, a monthly maga- of its offices in the Block 2 development zine covering nonprofits, fashion, food at Second and Scott streets in down- and events in Little Rock launched in Nonprofits town Little Rock. The expanded offices, 2002. now more than 17,000 SF, include a new Other publications include Arkansas Crystal Bridges the Museum’s national and global spe- newsroom for the Arkansas Business and Bride, Guest Guide to Greater Little Rock, cial initiatives and work closely with the ArkansasBusiness.com staffs. The main Arkansas Next: A Guide to Life After High Announces Changes board and staff leadership. Bigelow will entrance is being moved from Second School and InArkansas.com. assume oversight for day-to-day opera- Street to Scott Street. — Arkansas Business staff In Top Leadership tions of the Museum,” the release stated. Bacigalupi, who previously was presi- The board of Crystal Bridges Museum dent, director and CEO of the Toledo Notable Death of American Art on Tuesday announced Museum of Art in Ohio, joined Crystal top leadership changes: Don Bacigalupi Bridges in 2009. Russell Gunter, his diagnosis of cancer in 2008, he con- has been promoted to the newly cre- Bigelow had been the deputy direc- tinued to work virtually uninterrupted ated position of museum president, and tor of operations and administration at LR Lawyer, Dies until early 2013. His quiet demeanor, Rod Bigelow, the museum’s deputy direc- Crystal Bridges since 2010, overseeing analytical skill, positive attitude and tor for operations and administration, the areas of finance, facilities, grounds Russell Gunter, a prominent Little strong work ethic were hallmarks of his is taking Bacigalupi’s post as executive and trails, IT, security, human resources, Rock lawyer, died of cancer on Feb. 9. personality, both within the legal profes- director. culinary and retail activities. He was 62. sion and among friends.” Rick Roderick, In addition, Bacigalupi has been Sandy Edwards, who has been with Gunter practiced labor and employ- CGWG’s managing director, called named to a seat on the board of directors Crystal Bridges almost from the begin- ment law and was managing partner of Gunter’s legacy “immeasurable.” of the Bentonville museum. ning, remains as deputy director. Tracy Cross Gunter Witherspoon & Galchus for Gunter was a member of the The promotions, which were made by Cude will continue to serve as chief 16 years. Arkansas, Texas and American bar asso- the board and by board Chairman Alice financial officer, reporting to the execu- “Blessed with everything but a long ciations and chair of the Arkansas Bar Walton, are effective immediately, the tive director in addition to serving as life, he was a loyal friend, patient men- Association’s Labor Section and was museum said in a news release. project manager for the national and tor and trusted advisor whose integrity director of Government Affairs for the “In his newly expanded role, global special initiatives, reporting to the earned him not only the respect of cli- Arkansas Society for Human Resources Bacigalupi will serve as a member of president. ents but also that of opposing counsel,” Management. the board of directors and will advance — Jan Cottingham the law firm said in a statement. “Despite — Gwen Moritz WEEKLY REPORT Arkansas Business February 18, 2013 7 NORTHWEST ARKANSAS Census Says

High-Income Households JBU Gets $3M This map, provided by the The data is based on the $191,469 annually, and this U.S. Census Bureau, shows American Community Sur- is what the bureau is calling To Renovate the number of high-income vey years of 2007 through “high income.” households in each county. 2011 and on income received Not surprisingly, as the Historic Hall from January 2006 to bureau notes, the concen- November 2011. During this tration of high-income time, the top 5 percent of John Brown University of Siloam of young Christian men for generations, Figure 1. households mirrors the con- Number of High-Incomehouseholds Households received forat leastEach County centration in the United of population.States: 2007–2011 Springs announced Tuesday a $3 mil- will be preserved for the benefit of gen- 0 500 Miles lion lead gift from an anonymous donor erations of men yet to come to JBU,” Chip for the renovation of the historic J. Alvin Pollard, JBU president, said in a news Brown residence hall. The total cost for release. “We are deeply grateful for the the renovation will be $5.5 million. anonymous lead gift, and we look for- The university said the renovation ward to the additional support that will would remodel the 93-year old men’s be needed to make this critical renova- dormitory, updating rooms into modern tion a reality.” suites. J. Alvin Brown is the oldest uni- The university said part of the lead versity structure on campus. gift had been designated as a matching Construction is expected to begin this challenge, meaning funds contributed summer and be done by summer 2014. by other donors will be doubled by the “With this renovation, J. Alvin, which lead gift, up to $1.25 million. has had a shaping influence on the lives — Chris Bahn Number of households by county

884 or more 252–883 location for an outdoor concert venue in 107–251 Fayetteville 43–106 Fayetteville. Less than 43 Considers Funding Marilyn Heifner, director of the 0 100 Miles Fayetteville Advertising & Promotions Options for WAC Commission, proposed $24 million in Note: The term "county" refers to a county or statistically equivalent entity. 0 100 Miles Source: U.S. Census Bureau, 2007–2011 American Community Survey. bonds approved by city residents to help An evaluation of funding options for fund the projects. Her idea grew from an expansion of the Walton Arts Center studying a request for $8.5 million to help Source: U.S. Census Bureau has grown into a proposal that includes fund a $20 million center expansion. plans for a regional park and permanent — Chris Bahn

Greatest Start-up Ideas 1. Develop a retail store based on high volume and low prices 2. Create a clothing store to rival JCPenney in Arkansas History: 3. Provide great quality poultry to an entire nation 4. Build a logistics empire that connects both coasts 5. Become one of the world’s leading information providers 6. Start locally and become one of Arkansas’s largest banks 7. Work to become one of the world’s most successful oil companies 8. Invest wisely to be the largest off-Wall Street investment firm in the country 9. Be the state’s first brewer and bottler of beer 10. Provide reliable Internet to rural communities

Every world-changing business that started in Arkansas was born from a simple idea. The entrepreneurial spirit of these companies proves there’s nothing that can’t be achieved in Arkansas. Visit ArkansasEDC. com to find out how we can help you.

ArkansasEDC.com / 1-800-ARKANSAS 8 February 18, 2013 Arkansas Business WEEKLY REPORT

SOUTH ARKANSAS

2012 El Dorado Getting T.J. Maxx Outlet

A long-awaited deal with T.J. Maxx people will stay here to spend money, will see the department store opening and people from elsewhere will come relocation | storage | packing | delivery at the Mellor Park Mall in El Dorado. here.” The store will be moving into the Florsheim said an Atwood’s Ranch 501-223-blue (2583) • bluetruckmoving.com former M.M. Cohn space on Northwest & Home scheduled to open in a former Avenue, said Henry Florsheim, CEO of K-Mart space was also part of that plan. 7704 cantrell road • little rock • ar • 72227 the El Dorado Chamber of Commerce. “We’re not only putting vacant Florsheim said the deal was the buildings back into commerce, we’re result of working with T.J. Maxx for generating more sales tax here,” he more than a year. said. “Our economic development tax He said that last year, city leader- is a sales tax, so the more retail activ- ship “worked on a strategic plan on ity we have here, the more funds we how we could better attract and retain generate for more economic develop- young professionals. One of the four ment projects.” areas of priority was we have a short- Florsheim said construction plans age of diversity in retail opportuni- were being worked out for the T.J. ties. We know a lot of people drive to Maxx, and a timeframe for the store’s Monroe, Shreveport and Little Rock opening was not immediately avail- to shop, so the more retail opportu- able. nities we have here, the more likely — Luke Jones

Metropolitan CENTRAL ARKANSAS Tower Conway Changes Airport Architect Conway has switched architects for l Located in the Heart of the designing the terminal building of the Central Business District city’s new municipal airport. The Conway City Council on Tuesday l Exclusive High Rise Views approved Rik Sowell Architects of Conway as the architect for the terminal. l Attached Parking Garage The city dropped Architectural Alliance l 24 Hour Access of Minneapolis as project architect in favor of the local company to “expedite l Flexible Lease Terms the design and conceptual construction plan,” Mayor Tab Townsell said. l Single Offices to Multiple Floors The city has an $85,500 contract with Conway Airport Terminal. [ARTIST RENDERING] l High Performance Fiber Optic Technology Sowell to design the terminal. Sowell’s proposed terminal design is for a one- At the meeting, the City Council also story building that is about 6,000 SF. agreed to add work to a paving contract Space is available at the Metropolitan Tower! Conveniently located Sowell’s design should cost less than with Weaver-Bailey Contractors of El at the intersection of Capitol Avenue & Broadway Street, the that of Architectural Alliance, which is Paso (White County), the company that Metropolitan Tower provides a professional atmosphere, on-site currently doing design work for Clinton is currently preparing ground for the banking, florist, hair salon & restaurants. National Airport in Little Rock, the mayor airport’s concrete runway. Some costs of said. the paving work were lower than antici- Sowell’s design will have a “timeless, pated, so the city applied $650,304 of a To find out more about classic look” to go well with the archi- $5 million contract toward further soil the Metropolitan Tower, tecture of buildings on the campuses of stabilization. call or go online today. Conway’s colleges, Townsell said. — Kate Knable

Retail Easy Runner Sold Smith opened the state’s first running www.flake-kelley.com store in 1976. He opened Easy Runner in To Fleet Feet Inc. 1996. Smith also founded the Firecracker Fast 5k, now a Little Rock Fourth of July Gary Smith, owner of Easy Runner in tradition. Little Rock, said Wednesday that he had Smith said that Noelle and Sean sold his store to Fleet Feet Inc., billed as Coughlan, long-time Fleet Feet Sports the nation’s leading franchisor of run- employees, would become operating For More Information, Contact: James Harkins ning specialty stores. partners in the store. Fleet Feet, based in 425 W. Capitol Ave. 300, Little Rock | 501.375.3200 The formal acquisition took place Carrboro, N.C., has 99 locations nation- [email protected] | www.flake-kelley.com Wednesday, Smith said in a news release. wide. A purchase price was not disclosed. — Lance Turner Arkansas Business February 18, 2013 9 Legislative Roundup Reason #38 Legislative Agenda: Focus Remains on Guns, Abortion Fly Smarter. Fly Charter. Unlimited Variety of Snacks & Drinks By Mark Carter Senate vote. Customized Meals from In-Flight Catering® [email protected] Senate Bill 134, meanwhile, would ban No Fees for Blankets or Pillows most abortions at 12 weeks. The measure Arrive Relaxed and Refreshed Guns and abortions were featured by Sen. Jason Rapert, R-Conway, failed items on the legislative agenda again last to clear House commit- week at the 89th General Assembly, but tee last week despite Arkansas lawmakers ventured into other amendments adding areas as well. exemptions for the From voting to reward “whistleblow- life of the mother and Since 1939 ers” in state agencies who expose fraud “lethal fetal disorders.” 1501 Bond Ave | Little Rock, AR | 72202 | 501.975.9329 | central.aero to restructuring the Arkansas lottery House sponsor Rep. scholarship distribution, legislators took Ann Clemmer, R-Benton, simmonsfirst.com on a variety of issues, while Medicaid Jason planned to run the bill 4.791” x 2.8” expansion and its funding loomed in the Rapert again this week. 1/8 page horizontal background. Arkansas Business Whistleblower Rewards Guns in Church, on Campus The House approved a bill that would Gov. Mike Beebe, as promised, signed reward “whistleblowers” in state govern- into law a bill giving churches the option ment whose exposure of fraud and waste of allowing concealed carry permit hold- leads to savings. ers to carry in church. The bill, House Bill 1043 from Rep. The law will remove churches from Nate Bell, R-Mena, would reward such the list of places prohibited from allow- whistleblowers with up to 10 percent of ing concealed weapons. A compan- the savings gained from the discovery David Garner ion bill is working its way through the of the fraud or waste. The reward would Senior Vice President, Controller Capitol that will require those churches be capped at $125,000 unless approved and Chief Accounting Officer that opt in to post signs indicating they by the Legislature. The bill now heads to have done so. the Senate. A modified proposal to allow faculty and staff to carry on college campuses advanced last week. Rep. Charlie Collins’ Lottery Scholarship Distribution bill passed committee and was awaiting The formula funding the state’s lottery Congratulations a full House vote. The amended version scholarships would be changed under a of the Fayetteville Republican’s measure bill by Rep. Jeremy Gillam, R-Judsonia, David Garner! would give colleges and universities the that passed out of House committee last option of allowing faculty and staff to week. bring guns on campus. The bill would change the formula Meanwhile, Senate Bill 131 worked its to provide $2,000 for entering freshmen way toward becoming law. The measure at four-year colleges and universities in Simmons First is proud to announce the promotion of by Sen. Bruce Holland, R-Greenwood, the state and adding $1,000 each year would make secret the ultimately capped at $5,000 for seniors. David Garner to Senior Vice President, Controller and list of 130,000 or so Students at two-year colleges would Arkansans registered to receive $2,000 per year. Chief Accounting Officer. David joined the Simmons carry concealed guns. Currently, lottery scholarship stu- Currently, the names dents get $4,500 for every year at a four- First family in 1997 and has more than 15 years of and ZIP codes of con- year school and $2,250 for each year at a cealed carry permit two-year school. audit and accounting experience with us. He is a holders are subject to Bruce the state’s Freedom of graduate of Leadership Arkansas and was named to Holland Information Act. Voter ID The bill has passed A bill requiring Arkansas voters to the Arkansas Business “40 Under 40” in 2009. David the Senate and now heads to the House show a photo ID before they could cast a floor for an expected stamp of approval ballot was moved through Senate com- is an important part of our team and one of the many before reaching Beebe’s desk, where its mittee last week. The measure from fate remains unknown. Even if Beebe Sen. Bryan King, R-Green Forest, would ways we are constantly improving our service to the were to veto the measure, Arkansas law allow voters to cast a provisional ballot requires a simple majority to override. without an ID. Voters would have until people of Arkansas. the following Monday to provide county election officials with an ID, and voters Abortion without an ID could cast a ballot if they Abortion bills were batted back and sign an affidavit. forth last week. Rep. Andy Mayberry’s State law currently requires election

20-week abortion ban advanced through officials to ask for an ID but one is not MEMBER FDIC / SINCE 1903 Senate committee after the Hensley required to vote. n Republican added exemptions for rape and incest. It had originally included w Check out all of Arkansas Business’ legislative SIMMONSFIRST.COM / SINCE 1903 an exemption for the life of the mother. coverage at ArkansasBusiness.com/89th- Already House approved, it awaits a full General-Assembly.

SIMMONSFIRST.COM / SINCE 1903 10 February 18, 2013 Arkansas Business

Presented by has run since the 1950s: “Tradio,” an on- Radio: Stations air Craigslist that allows listeners to call in to buy, sell or trade possessions. find key to KEWI also reports on area weather, city council meetings and other local news. profitability “We provide local programming that CONGRATULATIONS TO THE 25TH ANNUAL they’re not going to get on a Little Rock is a local focus station,” he said. ARKANSAS BUSINESS OF THE YEAR FINALISTS Advertisers recognize the value, he Continued From Page One said, and the business model works. • Christie Jordan, Food Bank Business of the Year Merrill said he makes a comfortable of Northeast Arkansas – Category I them are coming to his station. Merrill living and employs two other full-time • American Data Network • Christina Littlejohn, Arkansas also knows that his website gets around staffers. Symphony Orchestra • Buffalo Outdoor Center 15,000 unique visitors per month. “We are pretty profitable,” he said. • Peggy McCall, Miracle League • Community Bankers Area sports, such as those of Malvern “All of our bills are covered and we’ve of Arkansas Merchant Services, Inc. (Hot Spring County) school Glen Rose, had some left over.” • Haag Brown Commercial Nonprofit Organization of the Year and, really, all things local, are KEWI’s About 95 percent of KEWI’s advertis- Real Estate and Development presented by AT&T bread and butter. ers are from Saline County. An “emo- Merrill’s station aggressively cov- tional connection” is a major reason they • PC Assistance • Bethlehem House, Inc. ers Saline County high school sporting pay to sponsor a program on the station, • Cystic Fibrosis Foundation events, sending a broadcaster to report Merrill said. “More than getting their Business of the Year Arkansas Chapter – Category II on away games no matter where they are name out, they want to tie their name • Economics Arkansas in the state. In addition, KEWI provides with what’s happening in the local com- • All-Clean USA • Museum of Discovery live play-by-play coverage of the sporting munity,” he said. • Kaufman Lumber Co. • Our House events of schools nearby, such as Glen Showing his confidence in the radio • PrivacyStar Rose. business, Merrill this month is buy- • U S Compounding Business Executive of the Year On Saturdays, KEWI still airs a show it ing, per Federal Communications • Winter Moving & Storage, Inc. • Sam Alley, VCC • Don Cavenaugh, Cavenaugh Business of the Year Auto Group – Category III • Kevin Lamb, Advanced Tissue • Arkansas Surgical Hospital • Brett Overman, All-Clean USA Is Radio Dying? • Arnold & Blevins Electric Co. • Jerry Spears, B&B Solutions • Jan-Pro of Arkansas Radio’s “demise has been exaggerated satellite streaming, he said. • Tankersley Food Service, LLC. ARCF Outstanding many times,” according to Peter Bowman of “I think radio’s going to have to be nimble Bowman Valuation Services in Alexandria, in adjusting to these new threats,” Bowman • TME, Inc. Philanthropic Awards Va. said. “Do I think that radio can adjust and • City Plumbing, Heating & Radio in the 1920s survived the shift from survive? Yes. Can it thrive? That’s a question Nonprofit Executive of the Year Electric, Inc. presented by AT&T silent movies to “talkies” and the growth of mark.” • Medic One Ambulance television in the ‘50s, Bowman said. Greater competition for listeners, now that • Matt Dozier, EAST Inc. • Lockheed Martin “You had things like eight tracks in the radio comes on a variety of platforms, and • Brian Itzkowitz, Goodwill • Jonesboro City Water & Light car, CDs in the car. That was supposed to kill the financial stress left over from the Great Industries of Arkansas special recognition radio. Cellphones were supposed to kill radio,” Recession are among the struggles for local he said. Now, the predators are Internet and station owners, said Steve Jonsson, general Arkansas Business February 18, 2013 11

Signal’s radio stations are all in the Little Rock market. They are sports talk station KABZ-FM, 103.7 (The Buzz), classic rock station KKPT-FM, 94.1 (The Point), and R&B and oldies station KHLR-FM, 106.7 (Heartbeat). KABZ does ReseRve youR the best financially of the three, and it has the most local content, Steve Jonsson said. seat today Jay Bunyard of De Queen operates 19 visit ArkAnsAsBusiness.com/ABoY radio stations in six Arkansas markets. His stations and their websites cover city council, school board and quorum court meetings, as well as high school February 26, 2013 sports, police reports and obituaries. Even the music formats air local news STaTehouSe ConvenTion CenTer ¿ Wally allen Ballroom ¿ liTTle roCk and sports. Bunyard said his stations don’t have 5:30 p.m. reception ¿ 6:00 p.m. Dinner much competition, and he indicated that the business is quite profitable. $100 Per TiCkeT ¿ $950 Per TaBle of 10 ¿ SeaTing iS limiTed “There’s only one place you can business attire go to get current local news. That’s radio, and the radio station’s web- site,” Bunyard said of his stations’ markets. “Being local is the key to success.” Owners of local radio stations tend to manage their stations with a strong understanding of what their listeners like and what their market is, said Bowman, KEWI-AM, 690, provides local programming that the station appraiser. Benton listeners can’t get elsewhere, says owner “In some ways, they’re working at an Grant Merrill. [PHOTO BY MICHAEL PIRNIQUE] advantage because they can be hyper- local and they know their markets intimately,” he said. Big corporate sta- Commission approval, five other radio tion owners such as Cumulus or Clear stations in two other small Arkansas Channel “are handicapped because of markets. He declined to name the sta- all their high debt loads. They’re not in a tions. position to lead adroitly. “ An AM/FM station sells for between $200,000 and $800,000 in markets of fewer than 100,000 people, said Peter What Works Bowman, who has been appraising Being a viable local radio station radio stations across the U.S. since 1987. means community involvement, accord- Bowman owns Bowman Valuation ing to Bob Connell, who has owned Services in Alexandria, Va. Variables that KFFB-FM in Fairfield Bay since 1998. could drastically affect the value of a His company generates annual rev- station include the land and buildings it enue of roughly $500,000, he said. KFFB owns, he said. has an oldies music format. “You’re never not working,” Connell said. Connell has specialized in ‘Local Is Key’ “remotes,” or doing broadcasts from Merrill’s KEWI isn’t alone in its suc- locations such as other local businesses cess. and festivals. Remotes from events, such Signal Media, a three-station chain as Conway’s Toad Suck Daze, are what owned by Philip Jonsson of Little Rock, have maintained KFFB’s listener base, is a profitable company, according to he said. General Manager Steve Jonsson, the Presented by owner’s son. RADIO CONTINUED ON PAGE 12

manager of Signal Media of Arkansas’ three total dollars spent stations. The fact that corporations can oper- on radio advertising For more inFormAtion, contAct AllYson PittmAn ate many stations while trimming expenses in Little Rock since At [email protected] is, however, an advantage the big companies 2007. Total radio or At (501) 372-1443, ext. 336 have, he said. market revenue in “It is really more and more diffi cult to make 2007 was about sponsored by money on radio,” Jonsson said. “Everyone is $30.8 million and it really creative in this business.” has dropped steadily In Little Rock, radio stations are working since. In 2012, the harder for fewer advertising dollars. Data from market’s total radio Miller Kaplan Arase, an accounting fi rm in Los revenue was $24.7 Angeles that provides media market revenue million. analysis, reveals about a 20 percent drop in — Kate Knable 12 February 18, 2013 Arkansas Business

RADIO CONTINUED FROM PAGE 11

When business got tough after 9/11, Connell “hired two salesmen and we went to every festival,” he said. “That’s how you stay popular. You have to be on the air when you want to be at home. When there’s a tornado on Easter, you’re here,” Connell said. Crain Media of Sherwood owns seven FM stations and two AM stations in Arkansas. Owner Larry Crain Sr. declined to talk about the profitability of his sta- tions, but he said that he, too, sees an emphasis on local con- tent and local on-air personali- ties as important to the success of locally owned radio stations. Crain Media over the past several months has part- Garry Horne, chief engineer for Signal Media of Arkansas, talks about Signal’s nered with New Lion Media of radio transmitter. [PHOTO BY KATE KNABLE] Fayetteville to build KKSP-FM, 93.3 (Sports 93.3 The Source), (Cool 104.7), in Searcy. “That’s driven the station to increase its into a competitive local sports what’s important to our listen- community presence, he said. talk station with Arkansas on- ers: Their local roots.” “We knew if we were going air talent such as Bo Mattingly KFLI — owned by TRM to be viable and profitable … we and Pat Bradley. Classic Hits of Searcy, which, in were going to have a presence in “To me, radio’s only viable turn, is owned by Terry Murphy everything we thought people product is local programming, of Searcy — is profitable and valued,” Williams said. local teams, local person- has a full-time staff of nine, “I don’t know of any stations alities, local chambers, local Williams said. that are doing well that aren’t Signal Media’s radio tower on Shinall Mountain in west Little Rock. [PHOTO BY clubs,” said Ben Williams, gen- The necessity of maintaining doing things that are really tied KATE KNABLE] eral manager of KFLI-FM, 104.7 a profitable business is what has to the community.” n

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foreclosure bid. Clary’s person- al finances were a mess too. Bankruptcy Case Winds Down The bankruptcy filing showed that Clary’s home had nine liens on it, totaling $26.73 million. In the September 2010 bank- For Felonious Exec, Steve Clary ruptcy meeting, Clary said that he didn’t know what the home Developer faces on,” Clary said. was worth. He said that the turn- He said he was making his prison sentence ing point for his companies $5,600 monthly mortgage. The of 33-41 months came when the financial firm mortgage amount increased, Lehman Brothers Holdings Inc. however, to $5,800 in 2010 By Mark Friedman of New York declared bankrupt- because he didn’t have a fixed- [email protected] cy in 2008, helping to trigger the rate mortgage. Great Recession. Clary told Rice he intended As convicted felon Roger “That began, you know, it to hold onto the home, and he Stephen “Steve” Clary of Little complicated everything for has. Rock awaits sentencing in U.S. everybody,” Clary said during “With any type of post- District Court for one count of the meeting. “So September of bankruptcy activity we’re able mail fraud, his bankruptcy case ‘08 I would say was a very sig- to generate enough income to is nearing an end. nificant date.” [pay the mortgage]. We certain- Clary, 60, filed for Chapter 7 In 2008, Clary said he wasn’t ly want to do that,” he said. bankruptcy protection in July receiving any money from his The bankruptcy filing didn’t 2010 and listed $168.6 million Steve and Cynthia Clary’s $1.2 million home in west Little Rock was his main companies and started borrow- shed light on how Clary was in debt and only $1.4 million in asset in his Chapter 7 bankruptcy. They listed $168.6 million in debts. ing or receiving money from able to continue making the assets, which was mainly his family, friends and his church payments. $1.2 million, 7,200-SF home in pursue the debt even after the Under the plea deal, the four to make ends meet. Clary didn’t submit the the gated Hickory Hills neigh- Clarys’ bankruptcy is closed counts of wire fraud were dis- He also sold a number of his required financial data to dem- borhood in west Little Rock. until it’s paid. missed. Clary could face up to household goods, including art, onstrate that he was eligible Reached at the home last Still, there’s not much hope 30 years in federal prison and lamps and chairs and generated for a federal public defender. week, the Little Rock business- that unsecured creditors, which a $1 million fine, but the terms $10,475. But he was appointed one any- man declined a request for an held $138.5 million in claims, of his plea deal suggest that the He said that he sold his 2004 way because “he is entitled to interview. will receive money from the sentencing guidelines will call Mercedes-Benz for $27,000 immediate representation and “We simply don’t discuss Clarys after his assets, which for 33 to 41 months in prison. around the first of 2009, but the it is in the interest of justice,” these things in the paper,” he represented just $14,100 in per- The judge in the case, U.S. bank garnished most of the pro- U.S. Magistrate Judge H. David said. “You need to write your sonal property, have been dis- District Judge J. Leon Holmes, ceeds, so he decided to start Young wrote in his Sept. 13, story and say what you will.” tributed. does not have to abide by the using cash and avoided his 2010, order. n Attorney Frederick Wetzel III “If you look at the bank- guidelines. bank account. of Little Rock, who is represent- ruptcy schedules, there doesn’t Clary also agreed to pay ing Clary and his wife, Cynthia, look like there was anything $1.595 million in restitution to said last week that most of the of significant value that wasn’t Banc of America. The lender Bankruptcy couple’s debts were discharged, pledged or mortgaged to a spe- sued Clary in bankruptcy court Collection lawsuits started except two totaling nearly $7.6 cific creditor,” Moriarty said. in November 2010 to prevent the piling up against Clary in 2008. million. He said the case is still The other debt that won’t be debt from being discharged. He By the time of Clary’s bank- open and referred questions to discharged is related to a $4.5 agreed in July 2011 that the debt ruptcy filing in 2010, most U.S. Bankruptcy Trustee Randy million loan he received in 2008 wouldn’t be discharged from his of Clary’s businesses Rice. Rice didn’t return several from Banc of America Leasing bankruptcy case. were closed. He list- calls seeking comment. & Capital LLC. That loan is also ed nearly $12 mil- The Clarys received a dis- the basis of the federal criminal lion in judgments charge from bankruptcy in charge to which Clary pleaded Bankruptcy Meeting against him or his December 2011, but that order guilty on Feb. 7. In September 2010, Clary businesses. was withdrawn in May 2012 The money was supposed sat for a bankruptcy proceed- Clary’s larg- after it was discovered that to go to one of Clary’s compa- ing and told trustee Rice that est unsecured the Clarys didn’t complete a nies, Destination Ventures, to his businesses started to fail in creditor was required financial management buy and customize six buses for 2008. But court records indi- M&I Marshall course. The filing indicates that lease. But Clary “directed the cate Clary was having financial & Ilsley Bank of the couple still hasn’t complet- vendor who was to outfit the troubles in 2007 when he posted Milwaukee for ed the course. buses to redistribute the funds a business loss of $13.3 million. $116.5 million. The largest debt that wasn’t once the vendor received them,” Clary, who had an owner- The debt was tied discharged is owed to Waterford according to a news release ship interest in 21 companies to his Shackleford Investors LLC of Oklahoma City, from the U.S. Attorney’s Office as of July 2010, is known for his Crossings, which which sued Clary in bankrupt- in Little Rock. development of the Shackleford fell into the hands cy court to prevent him from The vendor did as he was Crossings retail center in west of a receiver after he discharging a debt of $6 mil- told, and $1.595 million of the Little Rock through his Clary defaulted on a $74 mil- lion and alleged that he com- loan proceeds went to compa- Development Corp. of Little lion funding agreement. mitted fraud. Clary agreed to nies in which Clary had a finan- Rock. In May 2011, though, the Steve Clary said in the amount and a judgment was cial interest, but not for the Rice quizzed Clary on how Dallas office of Invesco Real a 2010 bankruptcy entered in May 2011. buses. he kept all his business records Estate bought the debt for proceeding that he Waterford’s attorney, Stephen In July 2010, Clary was straight if he didn’t keep all his an undisclosed sum from made ends meet with Moriarty of Oklahoma City, indicted by a federal grand jury records in one place. M&I Marshall. financial help from said last week that he didn’t on four counts of wire fraud and “We had good people in In July 2011, Invesco Real family, friends and think Waterford has been paid one count of mail fraud in con- our office, and then once you Estate received the 271,675- his church. any money. But Moriarty said nection with misappropriating breathe life into each of these, SF center on about 40 acres that Waterford can continue to the funds. you generally know what’s going of property with a $42 million 14 February 18, 2013 Arkansas Business LEXMARK. Federal Probe Includes

Font specs (full size as used in Page One nameplate): ARKANSAS BUSINESS: Antenna Condensed Bold 80 pt. ORDER FRAMED REPRINTS THE STATE’S ... : Antenna Condensed Regular 10 pt. OF Color specs: C82 M40 Y10 K0 Rule weight: 14 pt Leading: custom It’s not just ARKANSAS BUSINESS ARTICLESAlignment: fl ush right AND 5 Ex-One Bank Execs COVERS. Investigation involves said Pavlas. “When I came in, his ser- aa TAGLINE... printer vices were no longer needed, and the Each reprint is printed on high more than former CEO, board agreed.” for EVERYit’s how NEED wE Melton is among a group of five quality gloss paper and is double- his financial dealings and DO BUSINESS Worthen alumni who once worked EVERY BUDGET matted and professionally framed. together and later drew a paycheck from By George Waldon One Bank. He and three others are no lon- TOSHIBA, XEROX AND LEXMARK HEADQUARTERS [email protected] ger employed by the bank as regulatory STANDARD BUSINESS SYSTEMS scrutiny of its loan operations intensified. 663-4414 | www.standardbusiness.com For more information, email [email protected]. Layton “Scooter” Stuart, the former The first to go was Kelly Harbert, LocaWORLDLLy owned CLASS TECHNOLOGY, with responsive RESPONSIVE LLOCALoca LSERVICE service! chairman, president and CEO of One who was fired as senior vice president Bank & Trust, isn’t alone in receiving and commercial loan officer on June 3, attention as part of a 2010. She was ultimately sentenced to 30 criminal investigation months in federal prison and ordered to into the financial deal- pay $441,912 in restitution after pleading FREE BUSINESS CHECKING ings at the Little Rock guilty to bank fraud, money laundering We’re giving BIG rewards to our small business clients! bank. and using someone else’s Social Security At least five other number to make fraudulent loans for her former One Bank exec- own benefit. utives are included A year later, Mike Heald was fired as

500 in the probe that sent Layton executive vice president, chief operat- transaction items Stuart per statement IRS and FBI agents to ing officer and director. Tom Whitehead, cycle* Stuart’s west Little Rock home on Feb. CFO, executive vice president and direc- 6, according to a source familiar with a tor, was placed on paid administrative forensic audit ordered last year by the leave in October before he was fired in Office of the Comptroller of the Currency. December. How the bank’s former leadership The fifth, Gary Rickenbach, execu- used $17.3 million in TARP funds is draw- tive vice president, chief loan officer and ing special scrutiny, the source said. director, was placed on paid administra- Jerry Pavlas, One Bank’s new presi- tive leave late last month. dent and CEO, confirmed that the audit One Bank has operated under a super- was the basis of the investigation but was visory agreement with the OCC since less specific about details under investi- January 2011. The bank reported a $4.2 gation. million loss during 2012. “The investigation is against individ- Although Stuart is no longer involved uals who have left the bank,” said Pavlas, in operations and has no voting say who was hired as Stuart’s replacement in at the $439.7 million-asset bank, he October. “It’s not about the bank or any- remains in control of 99.9 percent of one still at the bank. The forensic report One Bank through its holding company, is done, and it’s all about the individuals OneFinancial Corp. in the forensic report.” “My intention and goal is to restabi- All of our small business checking accounts offer free Online Banking No former One Bank executives are lize and recapitalize the bank,” Stuart with Bill Pay and IBERIABANK will waive the monthly service charge on currently under indictment. However, said. “I have not had any discussions two personal checking accounts for the business owner.* Andrew Melton, who was hired by with anyone about selling the bank.” Stuart as a bank con- sultant in August, Free Business Checking was indicted on 12 • No Monthly Service Charge counts of mail fraud • No Minimum Balance in an unrelated case • 500 transaction items per statement cycle* on Feb. 6, the same • No monthly or annual fees on debit cards day Stuart’s Hickory Creek mansion was raided. Congratulations to Arkansas Business of the Year Finalists! Melton was re- tained by Stuart to help One Bank com- ply with the prompt corrective action or- dered by the OCC.

Stop by and visit with a Relationship Banker at any one of Worthen Alumni IRS and FBI agents executed a search warrant at the Little Rock our 34 branch locations throughout Arkansas today! home of Layton “Scooter” Stuart on Feb. 6. [PHOTO BY MARK FRIEDMAN] Melton, who www.iberiabank.com served as executive vice president and Pavlas said the bank is already stabi- CFO at Little Rock’s Worthen Banking lized. He added that it’s improbable that *Any Free Business Checking account exceeding stated transactions or cash deposited/exchanged limits during any two statement cycles in a 12 month period may automatically be converted to Advanced Business Checking. Free Online Bill Pay Corp. earlier in his career, worked as any efforts to raise capital will involve Service is intended for use by small business clients with annual sales less than $10 million. Commercial accounts must review a One Bank consultant for about only Stuart. online services with a Relationship Banker for a quote. Please refer to the Rate and Fee Schedule for more information. Public Fund, Brokerage or Institutional entities and IBERIABANK Corporation associates with businesses are not eligible for this offer. three months. “It’s just talk,” Pavlas said of Stuart’s “When I got here in October, his con- future involvement in the financial sulting arrangement was terminated,” affairs of the bank. “It’s craziness.” n Arkansas Business February 18, 2013 15

Riggs Property The deal is funded with a 30-year loan of A 27.7-acre tract in North Little Rock $417,000 from IberiaBank Mortgage Co. of shifted ownership in a $577,000 transac- Little Rock. tion. The residence previously was J.A. Riggs Tractor Co. bought the land linked with a February 2012 mortgage at the southeast corner of Faulkner Lake of $416,000 held by Bank of Little Rock Road and Industry Drive from John A. Mortgage Corp. Riggs III, trustee. The property was bought for The property was acquired as part of $550,000 in December 2006 from Lewis an $842,000 deal in April 1995. Homebuilders Inc., led by Jon Lewis. The sellers were the estate of Herschel Friday, William and Mary Lou Cravens, the Boyce Love Testamentary Trust, William Dealer Financing and Peggy Sutton, William and Elizabeth A west Little Rock auto dealership Terry, William and Kay Patton and the is backed with a $9.6 million funding Oaklawn Jockey Club Inc., led by Charles agreement. Cella. Landers Land Company 3 LLC, led by Steve Landers, obtained the five-year loan from Toyota Motor Credit Corp. of Fresenius Medical Care set up a new dialysis clinic at 5320 W. 12th St. after the Little Rock property Warehouse Sale Torrance, Calif. changed hands in a seven-digit transaction. [PHOTO BY JASON BURT] A 46,280-SF warehouse in southwest The 19.2-acre Landers Toyota devel- Little Rock drew a $300,000 sale. opment at 10825 Col. Glenn Road was Kurios Investor Holdings LLC, led by assembled in two deals with Leonard Dru Phillips and Roger Tucker, purchased Boen-led entities totaling $5.76 million. Midtown Medical Offi ce the 5207 Scott Hamilton Drive project. The sellers were Boen Enterprises LLC, The seller is Capital Properties LLC, led by $3.38 million in March 2004; and Colonel Gus Blass III. Glenn Centre LLC, $2.38 million in June Draws $1.8 Million Sale The deal is backed with a five-year 2010. loan of $270,000 from Capital Properties. The project also was tied to July 2009 A 6,300-SF medical office building in The 4.22-acre development was loans of $9.9 million and $4.4 million midtown Little Rock tipped the scales at bought for $600,000 in August 1980 from and a June 2010 loan of $3.5 million from $1.87 million. Bill Brandon. Toyota Motor Credit. Brauvin Net Lease LLC of Chicago acquired the former Internal Medicine Clinic at 5320 W. 12th St. from Southeast Riverside Home Manor Mortgage Medical Little Rock LLC of Birmingham, An 8,500-SF house in the Two Harbors Construction of a 75-unit assisted Ala. neighborhood on the edge of Little Rock living facility in west Little Rock is in The 0.87-acre development previously is under new ownership after a $653,000 motion with a $6.6 million financial was tied to a March 2012 mortgage of deal. package. $1.23 million held by Renasant Bank of Zammarud and Nadeem Siddique ac- The Manor LLC, led by Arby Smith, Tupelo, Miss. quired the house from M&T Bank of received the four-year loan from Arvest Southeast Medical purchased the Buffalo, N.Y. The deal is financed with Bank of Fayetteville. property for $695,000 in September 2011 Real Deals a one-year loan of $500,000 from First The 7.1-acre site at 1401 Labelle Drive from Fair Park Medical PLLC, led by Dr. Security Bank of Searcy. was acquired for $275,000 in June 2012 Carl Johnson. George Waldon The bank recovered the residence from the bank. The property was part of [email protected] from Anthony Bickerstaff at a $911,247 land platted for 44 residential lots that foreclosure sale in April 2012. The prop- secured an April 2005 mortgage of $2.1 Northwood Parcel The 0.64-acre development previ- erty was secured by a $986,250 mortgage million held by Arvest. A 20-acre commercial tract in North ously was linked with an October 2007 held by an M&T subsidiary. The bank recovered the property in Little Rock changed hands in a $1.16 mil- mortgage of $522,000 held by One Bank The location on the Arkansas River July 2010 as part of a $1.85 million fore- lion deal. & Trust of Little Rock. was purchased for $225,000 in April 2006 closure sale. The previous owner was Northwood Creek LLC, led by David The property was bought for from Bottom Line Inc., led by Charles Kanis Village LLC, composed of Eric and Haas, Steven Molpus, Steven Pascoe $595,000 more than five years ago Hinson. Toni McDuffie, Michael and Carey Hill and and Roy Yelenich, bought the land at the from the James & M. Dolois Younts Joseph Blankenship. n southwest corner of Counts Massie Road Trust No. 1. and Fitzgerald Lane. The seller is JKGS Hickory Pointe House LLC, led by Karen Greenfield. A 3,842-SF home in west Little Rock’s The deal is backed with a five-year Country Club Land Hickory Pointe neighborhood changed Seven-Digit Construction loan of $1.2 million from Eagle Bank & A nearly 24.5-acre residential tract in hands in a $579,000 deal. Chuy’s Trust of Little Rock. Maumelle sold for $650,000. Doug and Bobbie Beard bought the $1,300,000 CC21 LLC Jeff Fuller Arby William Virginia Cawthon The property was acquired in July , led by and house from and . 16001 Chenal Parkway, Little Rock 2001 as part of a $320,000 deal with Lee Smith, acquired the land near the south- The residence previously was tied to a Parkway Construction & Associates, Martha Kierre and . west corner of Country Club Parkway January 2009 mortgage of $349,000 held Lewisville, Texas and Vienne Place. The seller is Country by Pulaski Mortgage Co. of Little Rock. Club Development LLC, led by John Wright The property was acquired for Complex Transaction and Jack Wilson. $565,000 in June 2006 from Darin and 5,600-SF House $1,300,000 A 14-unit apartment project in Little The deal is funded with a 17-month Christine Hicks. Rock rang up an $830,000 sale. loan of $1.2 million from Little Rock’s 15 Adkins Court, Little Rock TMH Properties-S Street LLC, led by Bank of the Ozarks. Jack Hartsell Construction Co., Little Rock Ted and Rebecca Hammett, purchased The property previously helped se- Maisons Abode the project at 7718 S St. The seller is S cure a January 2003 mortgage of $1 mil- A 4,342-SF home in The Maisons Terminal Mechanical Project Street Apartments LLC, led by Rob Parker lion held by the bank. neighborhood of west Little Rock’s $1,200,000 and Eric McDuffie. Country Club Development pur- Chenal Valley development rang up a 1 Airport Road, Little Rock The deal is financed with a three-year chased the land in October 2002 as part $528,000 sale. Parsons Transportation Group Inc., loan of $700,000 from Union Bank & Trust of a $1.1 million deal with the city of Kami and Michael Perkins purchased Washington, D.C. of Monticello. Maumelle. the house from Christopher and Lisa Byrd. 16 February 18, 2013 Arkansas Business PLAZA WEST World- Class 415 N. McKinley Street El Dorado Launches Software, Your new Hometown office? City Mag The Diamond Agency of El Dorado is Solutions. producing a new glossy city magazine, El Dorado Insider’s Guide. The city of El Dorado, which is the county seat of Union County, has hired Diamond to publish four quarterly edi- MidTown Location Covered Parking Modern Amenities tions of the magazine, for a total of 30,000 Sage 100 ERP offers copies in 2013. The 2013 value of the pub- feature-rich solutions for lication to Diamond is $137,000. The magazine will promote El Dorado accounting and finance, to newcomers and visitors to the area manufacturing, distribution, and be distributed by mail to markets outside Union County. and customer relationship Diamond will produce the first edi- Outtakes management (CRM). Lobby Renovations tion of the magazine in April. Kate Knable Centrally Located Laura Allen, editor of the in-flight mag- Fiber Optics Stand-By Power azine Diamond publishes for SeaPort [email protected] Airlines of Portland, Ore., is also editor of El Dorado’s new city publication. peting TV stations. The ACA asked the The Diamond Agency is the adver- FCC to acknowledge such coordination tising agency of record for the city of El “as creating an attributable ownership Dorado. interest.” In its letter, the ACA listed Nexstar as www.softwaresolutionsar.com a party to 13 of the 48 instances across Little Rock (501) 834-7722 A New AM Station the U.S. where such coordination has For Leasing Information: Toll Free (877) 954-7171 Jay Bunyard, now owner of 19 radio sta- occurred. Mission was Nexstar’s partner Jeff Yates, CLS tions across Arkansas, on Feb. 1 launched in 12 of the 13 instances. 501.225.5700 CPA Firms: Call us to join the Sage Accountant a new radio station in Springdale. Here’s a key part of the letter: Alliance Network. Receive special pricing on a The station, KFMD-AM (Freedom “Big 4 stations provide essential pro- 5-user Sage 100 ERP Reference Library. www.plazawestlr.com 1430), has a talk news format and airs the gramming to our companies and our www.irwinpartners.com syndicated shows of Glenn Beck, former customers, without which we could not Arkansas Gov. Mike Huckabee, Michael viably compete against other [multi- Savage and others. KFMD is a 1,000-watt channel video programming distribu- station. Its studio is at 2250 W. Sunset tors]. When two non-commonly owned Ave. Big 4 stations in a single market coordi- KFSM-TV, Channel 5, of Fayetteville nate their retransmission consent nego- provides KFMD with local news and tiations, what little bargaining power we weather content. have to secure retransmission consent at

THE Bunyard is a native of De Queen fair market value is materially reduced. (Sevier County) and owns stations in This is because the coordinating stations Berryville, Camden, the Springdale/ can withdraw two Big 4 stations simul- Fayetteville area, Mena, De Queen and taneously.” Nashville (Howard County). Representatives of cable provid- ers Comcast and Suddenlink declined Will Little Rock Cable to comment on whether they thought Nexstar’s new partnership with Mission LON Competition Change? in Little Rock would change retransmis- Many of the changes coming to the sion negotiations. Representatives of SAFKO Little Rock TV market due to the con- Dish did not respond to requests for com- THIRD solidation of the operations of KLRT-TV, ment. Channel 16, and KARK-TV, EDITION Channel 4, are yet to be seen. As you’ll recall, Mission TACTICS, TOOLS & STRATEGIES Broadcasting of Westlake, Ohio, owns KLRT, and Nexstar Broadcasting of FOR BUSINESS SUCCESS Irving, Texas, owns KARK. However, in January, both stations began sharing staff and facilities. And that kind of thing isn’t sitting well with the American The American Cable Association has asked the FCC to address Cable Association of issues surrounding competing TV stations. Washington, D.C. The ACA this month sent a let- Mike Vaughn, the general manager ter asking the Federal Communications over both KLRT and KARK, also did not Commission to change the way it recog- respond to phone calls seeking com- nizes in-market coordination of com- ment. n Arkansas Business February 18, 2013 17 Tech Startups Arkansas Look to Web Business 24/7 For Funding Your weekly Arkansas Business habit is now a daily addiction. On the web, on Facebook, on Twitter, on Today’s THV and in your inbox, Arkansas Business keeps you informed with up-to- As young, technologically minded the minute Arkansas business news. entrepreneurs prepare their businesses for startup, many are turning to crowd- Leaders Follow funding to scare up elusive capital. One such successful crowd-funded Technology 12,800 Twitter followers and growing! Join the conversation with startup is Quintessential Universal- @ArkBusiness on Twitter. Get breaking news headlines and links to Luke Jones the latest news and commentary on business in Arkansas. Plus: Like Building Device of Little Rock. QU-BD us on Facebook at Facebook.com/ArkansasBusiness. (pronounced “cubed”) manufactures [email protected] 3-D printing technology, including both parts and entire units. a venue featuring classic arcade games. QU-BD printers are intended to be The Z82 Retrocade is a project envi- Follow Arkansas Business mainly for personal use and compete sioned by Daniel Solis and Terry South, personalities on Twitter. with the popular MakerBot products. both of whom have repaired arcade Get breaking business news and QU-BD sells three sizes of personal games professionally for many years. analysis with a personal touch. printers, the largest of which can create Like QU-BD, the Retrocade project an object the size of an average person’s already has several elements in place. head. The printers range in price from For example, Solis and South won’t $799 to $1,699. need to buy games: Their warehouse in Editor Interactive Editor Nathan Meyers, one of the co-own- Sherwood is already full of more than Gwen Moritz Lance Turner ers, said Kickstarter provided a “primary 100 classic game cabinets. About 10 of @gwenmoritz @LT blasting-off point.” them — including mainstays like Ms. Most Read Stories of the Week “We used it as a marketing platform Pac-Man, Centipede, Asteroids and for getting our product to mass produc- Missile Command — are fully restored. ArkansasBusiness.com’s most popular stories for the week ending Feb. 14: tion,” he said. “The demographics of Solis said the space could feature about people that get on that website is they’re 50 games once they are restored. 1. Justice Goodson Recuses From Tyson Cases After Vacation, Cruise younger and have disposable income The audience is there as well. Each Accepts holiday trips from Fayetteville lawyer, husband’s business partner. and good jobs. It was a great way for us month, the Classic Gaming Association 2. FedEx Pulls Conference Support After Damien Echols Added to Lineup to be able to go out into the public realm meets at the warehouse to play. (Two Says speech didn’t match understanding of conference. without spending too much money on members are actually competing for the 3. Law Enforcement Search Home of Former One Bank CEO Layton Stuart advertising.” state record on Donkey Kong.) Sources say investigators looking into allegations of self dealing. The team set a goal of $5,000, and Essentially, Solis and South want to 4. Creditor Alleges John L. Smith Tried to Conceal Assets in Bankruptcy the project ended up being funded for have a space where gamers can play Courtney Lawsuit says Smith diverted funds to accounts of family members. $73,361. Most backers received extrud- the games whenever they want. Unlike Goodson er parts for 3-D printers designed by regular arcades, visitors wouldn’t QU-BD. need to bring a stack of quarters to the Arkansas Business of the Year Awards QU-BD didn’t rely on Kickstarter for Retrocade. They would pay a flat fee and Meet the fi nalists in the 2013 Arkansas Busi- the whole project. Before the campaign, all of the games would be available in ness of the Year awards at ArkansasBusiness. Meyers and his team already had a ware- “free-play” mode. com/ABOY25. You’ll fi nd profi les and pictures of house, a mill, a lathe and tooling to The two men have a business plan who’s going up for the top prize, ticket informa- machine their products. The team also that basically needs the Retrocade to tion and links to past awardees. marketed elsewhere. break even. “We actually went to a maker’s fair,” “Money’s been tight, though, so we Meyers said. “It was basically a trade started the IndieGogo campaign,” Solis show for small, independent business- said. Southern Culture on Colbert es that manufacture products. About He said IndieGogo was selected over See Roger Hodge, editor of The Oxford American in Conway, go toe-to-toe with Comedy 100,000 were attending, and it was about Kickstarter because the former allows Central’s Stephen Colbert about serious Southern matters such as barbecue ribs, Texas and 30 days before the Kickstarter campaign. the funding to go toward the project and the music of Louisiana. Also check out ArkansasBusiness.com’s interview with Hodge at So people were already expecting us even if it doesn’t reach its goal. ArkansasBusiness.com/OA. to do that, and we had As of this writing, the Retrocade about $10,000 in sales campaign had about $800 raised of before day one.” its $45,000 goal. The biggest prob- So far, QU-BD lem, Solis said, is that the project sales are rising after isn’t able to obtain out-of-state an initial boom-slump support, since the rewards of following the Kickstarter investing are useful only to campaign, Meyers said. locals. He said QU-BD is also sell- “There was no sense in giv- ing its extruder parts ing away trinkets like tokens,” to other 3-D printer Solis said. “It had to be local.” manufacturers. To that end, they have been eNews by Interest “So it’s been really publicizing their ideas at local Weekly eNewsletters delivered to your inbox for free, focusing on the industries important great. We’ve been able to conventions and hobby stores. to you and your business. Register for your personalized eNews at ArkansasBusiness.com/ get our competition to buy Solis noted that even if eNews. our stuff,” he said. the project doesn’t reach its IndieGogo goal, it won’t be off Retrocade the table. The pair is determined In Sherwood, a group is to make the Retrocade a reality. working on crowd-funding “It will work,” Solis said. n 18 February 18, 2013 Arkansas Business

Time to Study Arkansas Ulterior Legislative Business Motives

Salaries ’ve been accused, in a comment Views on the ArkansasBusiness.com Iwebsite, of indulging some sort of EDITORIAL Arkansas Business’ Opinion Page personal vendetta for publishing last week’s Whispers item about Arkansas Supreme Court Justice Courtney Hudson Editor’s Note n something that looks like biparti- strong consideration. Goodson’s $50,000 trip on a boat owned sanship, state Rep. Warwick Sabin Members of the Arkansas House and by poultry magnate John Tyson. Gwen Moritz Iand state Sen. Jon Woods are propos- Senate currently receive a non-too-gen- I’ve also been asked, by the same [email protected] ing a constitutional amendment that, in erous salary of $15,869 yearly, with the defender of Justice Goodson, how its final state, would: exceptions of the House speaker and the Arkansas Business became aware of the trip in 2011) and recusing when she w Tighten laws governing campaign Senate president pro tem, who are paid gift that now requires her to recuse from could have simply lied by omitting them contributions and gifts to lawmakers; $17,771. any cases involving the documented from her annual financial disclosures. w Lengthen the time that a former Some lawmakers had a history of giver of the gift, Fayetteville attorney Complying with the law one has sworn legislator must wait before becoming a greatly supplementing their salaries W.H. Taylor, and the Tyson interests. to uphold is my rock-bottom expecta- lobbyist; through hefty and less-than-well-doc- I don’t know my critic personally, but tion of a Supreme Court justice, but it w Create a citizens’ commission that umented expense reimbursements, I suspect he’s considerably younger than happens that there is a third option: She would decide salaries for lawmakers and though the settlement of a lawsuit over I am. When I was younger, I too spent a could decline gifts that create conflicts. Arkansas’ seven constitutional officers; these reimbursements appears to have lot of time trying to tease out why people Then she would not have to lie, disclose and curtailed the abuses — for now. did the things they did — junior high or recuse. w Change term limits to let legislators It’s time, however, to address the issue classmates, then boyfriends, then poli- Back in 2002, in this same Editor’s serve longer. of legislative compensation in Arkansas. ticians. But eventually I stopped wast- Note space, I joined other opinion writ- The efforts regarding contributions, Voters in the state, whether they real- ing time trying to guess other people’s ers in the state in complaining about gifts and lobbying mirror those encap- ized what they were doing or not, autho- motives and started concentrating on the grabbiness displayed by our then- sulated in the Campaign Finance & rized the Legislature to meet yearly. If we their actions. governor, Mike Huckabee, and his wife. Lobbying Act of 2012, whose supporters expect lawmakers to strictly follow the If you see something published in “Is there anything — any little thing — failed to collect enough signatures to rules governing reimbursements — and Arkansas Business, whether it has a they are willing to forego in exchange put the initiative on the ballot last year. we do — then it’s fair to examine whether byline or not, you can fairly conclude for the privilege of serving the state of Those regarding legislative salaries and they’re entitled to a pay increase and if that I, as editor, thought it was qual- Arkansas?” I wrote at the time. And the term limits are a new twist. All are worth so, how much. n ity information that would be of some Huckabees didn’t have anything like the value or interest to the business audi- personal resources of the Goodsons. ence that I’m paid to serve. Period. If Arkansas Business were dedicated to *** STAFF DIRECTORY my personal whims, you’d be holding a The question of how I became aware publication filled with pictures of Cary of the $50,000 trip is easy to answer. I Chip Taulbee SPECIAL PUBLICATIONS ADMINISTRATION Associate Publisher Grant and Abyssinian cats and weighty read about it in the Arkansas Democrat- Editor Gwen Moritz Editor, Little Rock Soirée Jennifer C. Pyron Accounting Manager Hal Lammey Art Director Wayne DePriest Managing Editor, Little Rock Soirée Accounting Assistant Kim Clark essays on mid-century furniture and Gazette, which reported on Goodson’s Amanda Hoelzeman Human Resources Bill Page how “L.A. Confidential” was robbed by newly filed financial disclosure. EDITORIAL Editor, Little Rock Family Heather Bennett Executive Assistant Christine Harris the Academy — and you would undoubt- How I learned that the trip from W.H. Managing Editor Jan Cottingham Consumer Publications Editor Lindsay Irvin Digital Media Assistant Mary McLachclan edly allow your subscription to lapse, Taylor actually involved a boat owned Interactive Editor Lance Turner Consumer Publications Assistant Editor and I’d be unemployed. by John Tyson is a different question Senior Editors Chris Bahn, Mark Friedman, Sam Smith George Waldon I would like to ask Justice Goodson entirely. Suffice to say that one doesn’t Database Administrator Assistant Editors Luke Jones, Kate Knable Alex Graham why she, with a personal salary of stay in the news business for most of 30 Editorial Intern Liz Fox Sales Manager, Little Rock Soirée $145,000 and a husband with a net worth years without developing sources. Managing Editor, Business & Sports Graham Cobb conservatively estimated in the tens Occasionally someone will feel com- Todd Traub Special Pubs Senior Account Executives of millions, couldn’t pay for her own pelled to warn me that a news tip has InArkansas.com Editor Lauren James Tasha Amos, Betsy Tilley Chairman & CEO vacation so that she wouldn’t have to come from someone with a personal Olivia Myers Farrell Assistant Interactive Editor Account Executives recuse from cases involving an active agenda or ulterior motive. Ya think? In Tre Baker Haley Dearman, Luci Deere, Chief Operating Officer Innovate Arkansas Editor Katie Fortenberry Peek, Michelle Foshee, Chuck Ballard Fayetteville law firm and the state’s larg- fact, all tips — be they in the form of Mark Carter Brandy Hubener, Jamie Mabry Chief Information Officer est manufacturer. But she has declined press releases or phone calls or unsigned Brent Birch to answer my questions, so I have to letters mailed without return addresses Online Calendar Editor Blair Tidwell DESIGN Researcher Roxanne Jones Consumer Publications Publisher content myself with reporting what she — come from someone with a personal Production Manager Tona Jolly Rachel Bradbury Multimedia Producer Trent Ogle does and leave the speculation about her interest in seeing the news reported. That Senior Art Director Irene Forbes Business & Sports Publications Publisher SALES & MARKETING Art Directors Chip Taulbee motives to someone else. interest could range from public praise to John Atkinson, Dean Wheeler, Waynette Traub Vice President of Business Sales Interactive Editor I don’t recall ever meeting Justice personal gain to the private satisfaction

Bonnie Jacoby Advertising Art Directors Lance Turner Goodson, so my personal interest in of seeing a tip show up in Whispers, but Senior Account Executives Marcus Boyce, Erin Lang her actions is the same as that of any there is always a motive and that fact is Rosemary Bruton, Rebecca Patton Digital Operations Specialist Arkansas taxpayer who is concerned never lost on me. Account Executives Rebekah Eveland Greg Churan, Neil Gray, about good government. It is not unusu- Fortunately, I don’t worry too much Carrie Sublett CIRCULATION al for judges and justices to have con- about the motives of tipsters. If I think Advertising Coordinators Circulation Manager Dana Meyer flicts that require recusal, generally the news is of value or interest to my Bekah Caraway, Circulation Coordinator Cara Gieringer because of legal work done before they readers and I can independently deter- Kristen Heldenbrand, Alissa Mathews FLEX360 assumed the bench. It’s something com- mine that it is true, then I try to find a Marketing Manager Allyson Pittman WEBSITE DEVELOPMENT pletely different to create new conflicts place for it in Arkansas Business. That’s Marketing Coordinator Director Brent Birch Bethany Johnson 122 E. Second St., Little Rock, AR 72201 knowingly, deliberately and unneces- been the case with Justice Goodson’s Interactive Creative Director Mike Ortega sarily. activities. n Director of Marketing Senior Web Designer Lance Corder (501) 372-1443 Fax: (501) 375-7933 Jake Sligh My online critic seems to think Senior Web Developers ArkansasBusiness.com ● abpg.com Marketing Assistant Denise Brockinton Chris Earls, Jonathan Peoples © Copyright 2013 Goodson deserves much credit for being Gwen Moritz is editor of Arkansas Advertising Assistant Stacy Levy Interactive Traffic Manager Zack Hill Arkansas Business Limited Partnership honest about the gifts she has received Business. Email her at GMoritz@ABPG. from Taylor (there was also a $12,000 com. VIEWS Arkansas Business February 18, 2013 19

nizations. And what’s all that mean for Finding the Best Places to Work U.S. Pizza? Only an in-depth look at how the restaurant is s U.S. Pizza Co. one of viable dental and health plans itself of employee input not just leveraging its most valuable the Best Places to Work and profit sharing for employ- to appease its workers but to asset — its workers — and how Iin Arkansas for 2013? No, ees who’ve been there at least learn from them. to improve. not officially. The 40-year-old two years. So it’s only natural that U.S. Savvy businesses have pizza chain has signed up for U.S. Pizza’s reason for par- Pizza would participate in Best myriad metrics to define per- Arkansas Business’ new work- ticipating in Arkansas Business’ Places to Work and take advan- formance. But what tools do place evaluation and recogni- Best Places to Work, however, tage of the chance to gauge we have to measure our most tion program. is what makes the company so its workers’ satisfaction and important — and generally I’m not supposed to tell you well suited to earn the recogni- engagement with the company. costliest — resource? And how it has signed up. Participation is tion, and why your organization U.S. Pizza will go through often do we employ those tools? anonymous, except for winners. should sign up as well. our Best Places to Work regimen Arkansas Business’ Best Places But U.S. Pizza said it was OK to Great companies not only just like any other organiza- to Work program gives your orga- share. care about how their employees tion. Somebody from the com- Assoc. Publisher nization the perfect opportuni- To not win would hardly connect with their workplaces; pany will provide information ty to gather valuable data and form a blemish on the compa- that relationship defines them. about its human resources poli- Chip Taulbee insight about your employees ny’s stellar record. It’s a resume Such is the case at U.S. cies and practices. Employees [email protected] and improve your workforce. that includes decades of feast- Pizza, where the culture is not will take a survey about their Yes, there’s a cost to participate, ing on local publications’ “Best just defined by its employees impressions of U.S. Pizza. And tion survey (in aggregate but which goes directly to the firm Of” food and restaurant awards in some esoteric form but is come fall, based on judgment anonymous for individuals), conducting the research, not to but also recognition for its cor- written policy. Chief Operating from Best Companies Group of including response rates for dif- Arkansas Business. However, it’s porate philanthropy, a spot Officer Drew Weber charged his Harrisburg, Pa., U.S. Pizza will ferent demographics like gen- nominal — about $1,000, depend- on Inc.’s 500 Fastest Growing employees with writing short either achieve the benchmarks der, age, duration of employ- ing on number of employees Private Companies list the past essays on U.S. Pizza’s culture, necessary to be one of the Best ment and job role, — and pales in comparisons to two years, even an accolade for and their answers, edited only Places to Work in Arkansas for w A full transcription of what most research firms would city beautification. for spelling and grammar, com- 2013 or it won’t. employee answers to open-end- charge. U.S. Pizza is especially quali- pose a pamphlet given to all The upshot, though, is con- ed questions, For more information, fied, however, to receive an new team members. siderably greater than another w A benchmark report of its visit ArkansasBusiness.com/ honor for treating its employ- Their essays reveal a family- plaque on the wall for a job well employee responses compared BestPlacestoWork, or call me ees well. How many restau- friendly and fun environment, done. The real benefit is the with other participating com- at (501) 372-1443 or CTaulbee@ rants do you know that offer as well as a history of retaining employee feedback U.S. Pizza panies, ABPG.com. benefits competitive with most good employees. But beyond will get: w A benchmark report com- office jobs? This includes paid the touchy-feely superlatives, w A detailed view of employ- paring company practices and Chip Taulbee is associate vacation for first-year workers, it’s apparent U.S. Pizza avails ees’ responses to the 72-ques- policies to other Arkansas orga- publisher of Arkansas Business.

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PROBATE NOTICE NOTICE

IN THE CIRCUIT COURT OF PULASKI COUNTY, ARKANSAS, NINTH DIVISION ESTATE OF DAVID P. NICHOLSON, DECEASED LAST KNOWN ADDRESS: 117 COLONIAL COURT, LITTLE ROCK, PULASKI COUNTY, Meeting Planning ARKANSAS 72205 DATE OF DEATH: DECEMBER 28, 2012 DOCKET NO.: 60PR-2013-145

An instrument dated July 20, 2012 was on the 25th day of January, 2013, admitted to probate as the Last Will and Testament of the Made Easy above named decedent, and the undersigned has been appointed Executrix thereunder. A contest of the probate of the Will can be effected only by filing a petition within the time provided by law. All persons having claims against the estate ...at least finding a venue will be. must exhibit them, duly verified, to the under- signed within six (6) months from the date of the first publication of this notice, or they shall be forever barred and precluded from any benefit in the estate. Search meeting facilities by location, size and amenities This notice first published on February 11, 2013. online at ArkansasBusiness.com/MeetingPlanner Elizabeth Ann Nicholson Executrix of the Estate of David P. Nicholson 117 Colonial Court Little Rock, Arkansas 72205

Rose Law Firm, a Professional Association By: C. Brantly Buck 120 East Fourth Street Little Rock, AR 72201

Arkansas A LOCAL GUIDE Real Estate Marketplace Business TO REAL ESTATE

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For advertising information contact Bonnie Jacoby (501) 372-1443 [email protected] Arkansas Business February 18, 2013 21

Arkansas Super Mover Business A closer look behind a prominent promotion This Week: David W. Garner, senior vice president, controller and chief accounting officer Movers+Shakers for Simmons First National Corp. of Pine Bluff Background: Garner earned a bachelor’s Submit news items to ArkansasBusiness.com/Movers degree in accounting from the University of Arkansas at Little Rock and received the designation of Certified Public Accountant in Education viously employed as a 1996. He also attended the University of Vir- Anne Grippo has been appointed loan officer, loan coor- ginia’s American Institute of Certified Public associate dean of the dinator and operations Accountants’ National Banking School and College of Sciences & specialist. is a member of the Arkansas Society of Pub- Mathematics at Ark- Jack Waldo has lic Accountants and the National Investor ansas State University been transferred to the Relations Institute. in Jonesboro. Prior investment banking to her appointment, Jim department of Stephens Experience: Garner worked as a staff Grippo worked as a Moore Inc. of Little Rock in an accountant for Priddy & Holifield PA and departmental repre- effort to expand the company’s trans- served as a regulatory accountant for Ste- Anne sentative to the College portation team. Waldo joined Stephens phens Inc. He joined Simmons in 1997 as an Grippo Assessment Committee in 2000 as a financial analyst before auditor and later filled the positions of ac- and as college representative to transferring to the Stephens Research countant, management accounting officer, David Garner’s duties will expand with the University Learning Outcomes Department. The company also recently assistant manager of corporate planning Simmons First National Corp.’s growth, pri- Assessment Committee. She also serves expanded its Technology Investment and assistant vice president of corporate marily in the areas of regulatory reporting, as a research mentor. Banking Group, which focuses on secu- planning. After serving as vice president of strategic planning and investor relations. Edward L. Smith of Shawnee, Okla., rity and software for large companies. the Finance Group in 2004, he was elected [SUBMITTED PHOTO] has been named the Daniel Koehler of Little Rock has senior vice president and controller in 2006. new director of public joined the board of Southern Bancorp Garner also serves on the board of directors planning and investor relations. He will report safety at the University Inc. of Arkadelphia. Koehler is president for the Southeast Arkansas Arts & Science to Senior Executive Vice President and CFO of Arkansas at Little of Koehler Software Inc. of Little Rock Center and is a member of the Pine Bluff Bob Fehlman as well as Simmons Chairman Rock. Smith has more and once served as the chief financial Downtown Rotary Club. and CEO J. Thomas May. “It is [David’s] ‘can- than 35 years of expe- officer of Union National Bank of Little do’ attitude and willingness to take on any rience in law enforce- Rock. He also worked as a certified pub- Position: In addition to serving as vice pres- assignment that make me and our CFO look ment and began his lic accountant with Arthur Young & Co. ident, Garner has taken on the role of control- better than we deserve,” May said in a news Edward career at the Oklahoma in New York. ler and chief accounting officer. His duties will release. “I am very proud of David and look Smith City Police Department. expand with the company’s growth, primarily forward to his continued growth within the He currently serves as director of the offi- in the areas of regulatory reporting, strategic Simmons First family.” n cer program and teaches at East Central Legal University in Ada, Okla. Michael Heister has joined the law firm of Webster University. The ASILC has of Quattlebaum Grooms Nonprofit also hired Leann Clark of Little Rock as Tull & Burrow in Little Sha Burke-Stephens of North Little an administrative specialist. She will be Financial Services Rock. Heister practiced Rock has been named responsible for overseeing most of the Jamie Davis and Jim law in Washington, executive director of organization’s day-to-day operations. n Moore have joined the D.C., for nine years with the Arkansas Statewide northwest Arkansas the Environmental Independent Living Movers and Shakers division of Liberty Bank Defense Section of the Council. She previ- of Arkansas. Davis has U.S. Department of ously worked as the Have a new employee or one recently more than six years of Michael Justice and was award- co-director of compli- promoted? Recently elected to a board banking experience Heister ed the EPA Gold Medal ance marketing for the of directors? Include it in the Movers & and has worked as an for Exceptional Service. Sha nonprofit organiza- Shakers section. Contact Gwen Moritz at Jamie assistant manager and His practice focuses on civil litigation, Burke-Stephens tion Pathfinder and [email protected] or (501) 372-1443. Davis banker. Moore was pre- environmental compliance and appeals. also taught at the Little Rock campus

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Windstream Corp. Have an event that Seminar: Introduction IABC University Meeting. Barcamp Conway. 8 Arkansas Business Fourth-Quarter should be on our cal- to Social Media. Reynolds 9 a.m.-4:30 p.m. William a.m.-4 p.m. University of of the Year Awards. Earnings Release. 7:30 endar? Submit items: Business Center, University Bowen School of Law, Central Arkansas, Conway. Statehouse Convention a.m. Available online ArkansasBusiness.com/ of Arkansas at Little Rock. UALR. Speaker: Museum of Workshops, lectures. Free. Center, Little Rock. 5:30 at Windstream.com/ events. $30. (501) 683-7700. Discovery CEO Kelley Bass. Visit BarcampConway.com. p.m. reception, 6 p.m. din- Investors. $30. Visit IABCArkansas. ner. Call (501) 372-1443 for Workshop: Starting a com. tickets and more informa- North Little Rock Business in Arkansas. tion. Chamber of Commerce Clarksville Chamber of Food Law: An Overview. Banquet. 5:15 p.m. Verizon Commerce, 101 N. Johnson 8 a.m.-12:15 p.m. Arkansas Arena. $60. (501) 372-5959. St. $20-$30. (479) 356- Bar Association, 2224 2067. Cottondale Lane, Little Rock. (501) 375-4606. 22 February 18, 2013 Arkansas Business This Week: Rick Niece Arkansas President of the University of the Ozarks in Clarksville Business reacted to that? Our mission emphasis and program curricula have dramatically shifted from our being Bio: Rick Niece Exec Q&A primarily a liberal arts campus to one Bio: Before coming to the Uni- promoting career preparation that versity of the Ozarks in 1997, To submit questions or interview suggestions, email [email protected] is built upon a liberal arts founda- Rick Niece was interim presi- tion. That is, we are now a com- dent at Walsh University in Rick Niece has served in his role since 1997 and will retire in July. He was prehen