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Arkansas Business Looks Back at Notable Deaths of 2015

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January

Miller Williams, 84, a Hoxie native considered one of the foremost contemporary poets in the United States, died Jan. 1. Williams, founder of the University of Arkansas Press and a long-time professor at UA, read a poem at President Bill Clinton’s 1997 inauguration.

February

Herman Tuck, 85, who founded the renowned Herman’s Ribhouse in Fayetteville in 1964, died Feb. 2. A Fayetteville native, Tuck was also a talented drummer who played with Ronnie Hawkins’ first band.

Thomas Archie Monroe, 105, died Feb. 3. Monroe owned and operated the Magnolia Insurance Agency, which was founded by his father, had served as president for the First National Bank of Magnolia and was a founder of First Federal Savings & Loan Association of Magnolia. He also twice served as president of the Magnolia Chamber of Commerce and became the unofficial historian of Magnolia and Columbia County.

March

Larry Fugate of White Hall, 69, who spent 50 years in journalism as a reporter and editor at the Jonesboro Sun and later as an editor at the Pine Bluff Commercial, died March 5. His Jonesboro Sun reporting team was runner-up for a Pulitzer Prize in 1999 after the 1998 Westside school shootings in which two students fatally shot five people.

Richard “Dick” Bell, 81, Arkansas’ first agriculture secretary, died March 13. Bell, a former president and CEO of Riceland Foods Inc. of Stuttgart, served as chief of the Arkansas Department of Agriculture from 2005-12. He spent 27 years at Riceland and built the cooperative into the world’s largest miller and marketer of rice after working in international affairs for the U.S. Department of Agriculture. He was a 2003 inductee in the state’s Business Hall of Fame, a 2004 inductee in the Arkansas Agriculture Hall of Fame and in 2009 was named one of Arkansas Business’ 25 Living Legends.

Stacy Lynn Duckett, 50, of North Little Rock, vice president and chief compliance officer at Southwest Power Pool in Little Rock, died March 20. Duckett began working at SPP in 2000 as an attorney in the transmission and regulatory policy group. Before joining SPP, Duckett had worked at TCBY Enterprises Inc. of Little Rock, eventually becoming vice president and assistant general counsel.

April

John Paul Hammerschmidt of Harrison, 92, who in 1966 became the first Republican elected to Congress from Arkansas since Reconstruction and served as Arkansas’ 3rd District congressman for 26 years, died April 1. Hammerschmidt saw service in World War II as a pilot in the Army Air Corps, earning four Distinguished Flying Crosses among other honors, and turned to politics after 20 years as a lumberman, builder and building supplies businessman. He received praise for his constituent service and paid particular attention to infrastructure and veterans matters. Hammerschmidt wrote the law that preserved the Buffalo River as the nation’s first national river and introduced the bill to create the Vietnam Veterans Memorial in Washington. The closest he came to being defeated during a congressional election was in 1974, when a young Bill Clinton challenged him. Hammerschmidt retired from Congress in 1993. He was a “lifetime trustee” of the University of the Ozarks at Clarksville and a former chairman of the board of trustees at Arkansas State University and served on the boards of four Arkansas-based corporations: American Freightways, now part of FedEx Freight; Bear State Financial; Dillard’s Inc.; and Southwestern Energy Co. (now headquartered in Houston).

William Gregory “Greg” Chance, 63, news director at KASU in Jonesboro, Arkansas State University’s public radio station, died April 14 after suffering a heart attack while driving and hitting a tree.

William Terry “Bill” Valentine Jr., 82, general manager of the Arkansas Travelers Baseball team from 1976-2009, died April 26. Valentine, raised in Little Rock, was known for his colorful promotions, acts like the San Diego Chicken and Captain Dynamite. He was inducted into the Arkansas Sports Hall of Fame and the Texas League Hall of Fame. The National Association of Minor League Baseball Teams named Valentine Executive of the Year in 1976, 1977, 1978, 1988, 1999 and 2007, as well as proclaiming him “The King of Baseball” in December 2014.

May

Barry Felton, 63, a partner in the family business, Felton Oil Co. of El Dorado, died May 12. He was a past president of the Arkansas Oil Marketers Association and served on the boards of First National Bank of El Dorado and the El Dorado Golf & Country Club.

George Haley, 89, the last survivor of the “Six Pioneers,” a group of students who desegregated the University of Arkansas at Fayetteville, died May 13 at his home in Maryland. He became the second black student to graduate from the University of Arkansas Law School in 1952. Haley, raised in Pine Bluff, joined a law firm in Kansas City, Kansas, and went on to serve as deputy city attorney and a Republican state senator. He later entered government service and was chairman of the U.S. Postal Rate Commission and U.S. ambassador to Gambia.

June

Floyd Lee Williams II, 89, a longtime aide to Sen. J. William Fulbright of Arkansas, died June 3 as his home in Arlington, Virginia. He worked for Fulbright from 1955-1974, eventually becoming chief of staff. Williams served as a mentor to a young Bill Clinton, hiring him to the Senate Foreign Relations Committee staff while Clinton was attending Georgetown University. Williams also was general counsel to the Senate Democratic Policy Committee from 1974-1978, and an adviser to Senate Majority Leaders Mike Mansfield of Montana and Robert Byrd of West Virginia.

July

William H. “Buddy” Sutton, 84, a former chairman and managing partner of the state’s largest law firm, Friday Eldredge & Clark of Little Rock, died July 2. He joined the Friday firm in 1959 and led the firm’s trial department. Sutton was the first chairman and managing partner of the firm after the death of Herschel Friday in 1994. His clients included some of the top names in Arkansas business, including publicly traded department store chain Dillard’s Inc. of Little Rock, and his philanthropy and volunteer efforts bolstered universities, a law school and nonprofits throughout the state. He retired in 2005 but continued serving of counsel. In 2002, he received the National Humanitarian Award from the National Conference for Community & Justice of Arkansas, Easter Seals named him Arkansan of the Year in 2004, and Ouachita Baptist University named the W.H. Sutton School of Social Sciences in his honor.

Jim Gaston, 73, the Arkansas outdoorsman who transformed his father’s resort into a world-class destination for trout fishing, died July 13. Gaston was a pioneer in the marketing of the state as a tourist destination. He received the Legacy Award from the Arkansas Game & Fish Foundation earlier this year. Gaston held various leadership positions with the Arkansas Hospitality Association and the Mountain Home Chamber of Commerce and had been president of the Arkansas Tourism Development Foundation since its founding in 1970. In 2011, Gaston was named Arkansas Business’ Executive of the Year.

Ronald “Ronnie” Herman Udouj, 74, of Fort Smith, co-owner of Bradford & Udouj Realty, general manager of Riverside Furniture and chairman of the board of River Valley Bank & Trust, died July 27.

August

David Watkins, 61, city manager of Hot Springs, died Aug. 17 after suffering injuries in a fall at his home. Before coming to Hot Springs in 2012, Watkins was the city manager of Auburn, Alabama, and Bryan, Texas.

John Correnti, 68, chief executive officer of Big River Steel in Osceola, died Aug. 18 while on a business trip to Chicago. Correnti, described as a “steel man’s steel man,” was leading the construction of the $1.3 billion steel mill in Mississippi County. Correnti started at U.S. Steel in 1969, where he worked in construction management until 1980. He joined Nucor Corp. that year and went on to rise to president and CEO of the company, only to be forced out by a newly named chairman in 1999. Correnti was CEO and chairman of Birmingham Steel Corp. for three years from December 1999 to December 2002. He founded steel development company Severstal Columbus LLC in 2005, serving as president and CEO. The company built a $980 million plant near Columbus, Mississippi, which opened in September 2007.

September

Jim Porter Jr. of Little Rock, 83, an entertainment promoter, agent and manager who was instrumental in integrating music venues in Arkansas, died Sept. 3. Porter started out his career in his family’s business, which included warehousing, moving and storage, and food distribution. But his love of music led him to bring top-flight entertainers, some of them black, to the state to perform. In 1961, Porter, protesting Little Rock’s Robinson Center Music Hall’s segregation policy, was arrested during a Ray Charles concert for sitting among black audience members. The center dropped its segregation policy by the time Louis Armstrong performed there in 1966. Porter was inducted into the Arkansas Entertainers Hall of Fame in 2005 and the Arkansas Jazz Heritage Foundation Hall of Fame in 2006.

Joe Davis “J.D.” McClard, 91, who led famed McClard’s Bar-B-Q Restaurant in Hot Springs until his retirement in 2005, died Sept. 22. The restaurant’s barbecue and barbecue sauce gained even greater national attention with the election of native son Bill Clinton, a fan of the spot, to the presidency in 1992.

Donald L. Holbert, 75, chairman and CEO of Central Flying Service at Little Rock and a member of the Arkansas Aviation Hall of Fame, died Sept. 27. Central Flying Service was founded in 1939 by Claud Holbert and Edward Garbacz. Don and Dick Holbert took control of the business in 1976 after their father retired. Don Holbert served in the U.S. Army, rising to the rank of captain. He was platoon leader and a helicopter gunship pilot in Vietnam, earning the Distinguished Flying Cross with “V” device for Valor, the Bronze Star, 32 Air Medals and the Vietnam Cross of Gallantry. After his service, Holbert returned to Central Flying Service, eventually becoming the company’s vice president of operations, president and, in 1981, chairman of the board. He was a founding member of the board of the Arkansas Aviation Historical Society and was inducted into the Arkansas Aviation Hall of Fame in 2006.

October

Circuit Judge L.T. Simes II, 65, the first black man to be elected as a circuit judge in Phillips County, died Oct. 10. He was first elected to the position of circuit judge for the 1st Judicial District in 1996. Simes served from Jan. 1, 1997, to Nov. 9, 2009, and again from Jan. 1, 2011, until his death. He also co-owned the Delta Force III Radio Network, consisting of KCLT 104.9 of Helena-West Helena; KAKJ 105.3 of Marianna/Forrest City; and WNEV 98.7 of Friars Point/Clarksdale, Mississippi.

David “Dave” Michael Clark of Little Rock and Destin, Florida, founder of Air Traffic Service Corp., an air cargo company, and former owner of Iron Horse Farm of Perryville, a breeder and trainer of thoroughbreds, died Oct. 18 at 74. Clark bought and expanded H.E. “Tex” Sutton Forwarding, an equine air transportation company, and created the Clark Family Foundation, dedicated to supporting children’s health and well-being. The David Clark Heart Center at Arkansas Children’s Hospital is named for him. Clark also served as president of the Arkansas Thoroughbred Breeders’ & Horsemen’s Association.

Darrell Brown, 67, a Little Rock lawyer who was the first African-American football player at the University of Arkansas, died Oct. 31. Brown, raised in Horatio, joined the team as a walk-on in 1965. An injury sidelined him and he didn’t play after his freshman season. Brown received his law degree in 1972 and soon after graduation was appointed U.S. magistrate in the Panama Canal Zone. Brown later served as an assistant attorney general, special prosecutor and special judge in Pulaski County. In 2011, he was honored as part of the Razorbacks Trailblazers series.

November

Frank Lyon Jr., 74, who served in leadership roles at many companies, including the Coca-Cola Bottling Co. of Arkansas, died Nov. 8 at his Little Rock home. Lyon led several companies, including the Frank Lyon Co., Wingmead Inc., Arkansas Irrigation Co. and U.S. Bank. A beneficiary of the Lyon family’s generosity was Arkansas College at Batesville, which changed its name to Lyon College in 1995.

Parker Westbrook of Little Rock, 89, famed Arkansas preservationist and the founding president of the Historic Preservation Alliance of Arkansas, died Nov. 19. Westbrook, originally from Nashville, was inducted into the state Department of Parks & Tourism’s Hall of Fame in 2007 for his work in promoting heritage tourism in Arkansas. The Historic Preservation Alliance’s annual lifetime achievement award is designated the Parker Westbrook Award.

Fred Poe, 81, founder of Poe Travel of Little Rock, Arkansas’ best-known travel agency, died Nov. 27 in Vancouver, British Columbia. Poe, a descendant of pioneer settlers in Saline County, founded Poe Travel in 1961. In September 1975, Poe Travel was the first U.S. travel agency to arrange tourist travel to China after President Richard Nixon’s historic 1972 visit to the communist country and the beginning of normalization of the relationship between the two nations.

December

Joe Mosby, 85, of Conway, a journalist best known as the longtime outdoor editor for the Arkansas Gazette, died Dec. 6. Mosby started his newspaper career in 1952 with the Log Cabin Democrat in Conway and worked at the Gazette from 1969 until it closed in 1991. He went on to write for the Arkansas Game & Fish Commission. Mosby was an inductee into the Arkansas Outdoor Hall of Fame and the Arkansas Sportswriters & Sportscasters Hall of Fame.


‘We Were All Going To Get Rich': Arkansas Business' Best Quotes of 2015

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“A favored haunt of politicians, bond daddies and cocaine whores.”

— An Arkansas businessman fondly describing the 1980s environment at Buster’s Bar & Restaurant, Little Rock’s original “fern bar”

(Little Rock's Original Fern Bar: How Buster's Birthed Dave & Buster's)


“For me, Arkansas really did turn out to be the land of opportunity. I came to town with nothing. I didn’t even own a car. And I got the chance to go all the way — literally — to Wall Street and Times Square.”

— James “Buster” Corley, one-half of the duo who founded Dave & Buster’s

(Little Rock's Original Fern Bar: How Buster's Birthed Dave & Buster's)


“This company is too big to manage.”

— Howard Davidowitz, chairman of Davidowitz & Associates Inc., a national retail consulting and investment banking firm in New York, about Wal-Mart Stores Inc.

(Retail Analysts Say Wal-Mart's Become Too Big to Manage)


“Families don’t deserve this. There are bodies that have been back there literally three weeks waiting to be cremated.”

— Mike Jones, a licensed embalmer and funeral director, on why he filed a complaint with the Arkansas State Board of Embalmers & Funeral Directors against Arkansas Funeral Care of Jacksonville, his employer for five months

(Jacksonville Funeral Home Under Investigation)


“I guess it goes back to how small Arkansas is. Everybody seems to know something about someone. It seems like everybody has a dark secret with sort of varying levels of how dark, at least one about somebody. And it seems like eventually the person they have a secret about will do something to make them mad and then somebody feels the need to get that story out there.”

— Matt Campbell, Little Rock lawyer and operator of the blog the Blue Hog Report

(Matt Campbell of the Blue Hog Report Keeps on Digging)


“I think there are people in state government taking special pains to behave because of the Blue Hog. And it may be more than state government since he’s delved into Little Rock school issues. I think people know that this guy is liable to turn his attention to them, and if he picks them, they’re in trouble if they’ve done anything wrong.”

— John Brummett, political columnist speaking about Matt Campbell

(Matt Campbell of the Blue Hog Report Keeps on Digging)


“I shouldn’t even be here. This should never have been reopened. How did I do that with no money and no credit? It was a miracle.”

— Daniel Maestri on keeping Mary Maestri’s Italian Grillroom running

(Mary Maestri's Keeps On Cooking in Springdale)


“From all indications and research conducted, it appears Grainster could potentially be Arkansas’ largest startup in the history of recorded capital investment in the state.”

— Grainster, an online grain-trading business based in Conway, in a news release

(Conway Startup Grainster's Boasts Wildly Optimistic Projections)


“It was a cluster mess, you know, is what it turned into.”

— Charles L. “Chuck” Walker, the North Carolina man who persuaded Little Rock credit union president Joyce Judy to invest $1 million in what turned out to be an international scam, describing the scam in a deposition. Walker pleaded guilty in South Carolina in October to wire fraud conspiracy in a different but similar scam.

(How A Trans-Atlantic Investment Scam Ensnared Credit Union President Joyce Judy)


“It was just — you know, how it was all going to work, and we were all going to get rich.”

— Joyce Judy explaining why the scam was so attractive that she stole $500,000 from a credit union customer in order to invest in it

(How A Trans-Atlantic Investment Scam Ensnared Credit Union President Joyce Judy)


“This is American medicine at its worst.”

— Dr. Steven Nissen, the chairman of the department of cardiovascular medicine at the Cleveland Clinic in Ohio, about the rise of clinics that tout they can treat symptoms related to low testosterone in men

(Epoch Men's Clinic Expanding in Arkansas)


“We made so much money in 2011, it took us awhile to get back on the record earnings pace.”

— George Gleason, chairman and CEO of Bank of the Ozarks Inc. on the company’s 2014 return to its record profits after a two-year hiatus

(Gleason: Record Loan Growth, Other Factors Boosted Bank of the Ozarks)


“Dale Bartlett has his story. I’m sure Jason Coleman has his story. And I don’t think we are to the bottom of it yet. I think there’s much to be unraveled here.”

— Lyndsey Dilks of Little Rock, one of the attorneys representing Southern Rice & Cotton LLC of Harrisburg (Poinsett County), which is owed $3.23 million, according to Turner Grain’s bankruptcy schedules

(Turner Grain's Dale Bartlett Claims Ignorance in Company's Collapse)


“The color just drained from my face.”

— Bruce Burrow, developer of Jonesboro’s Turtle Creek Mall reflecting back on the day he learned the project was massively over budget

(Jonesboro Developer Bruce Burrow's Pyrrhic Victory)


“As we did that, as Wal-Mart is known to do, sometimes we go too far. We found the ditch on the other side of the road. We’re trying to get it back to the middle of the road without going all the way to the other ditch on the other side of the road.”

— Wal-Mart Stores Inc. CEO Doug McMillon on raising worker pay after holding too hard a line on expenses

(Doug McMillon: How I Knew It Was Time to Raise Pay at Wal-Mart)


“Why would I come back? I had no choice. I owe them. This university has been my life.”

— UA Interim Chancellor Dan Ferritor, who returned to the job at age 75 after serving as chancellor from 1986-97

(An 'F' in Retirement: UA's Repeat Chancellor Dan Ferritor Says This Time He Means It)


“The businesses have never cash flowed.”

— Roger Rowe, partner in the Little Rock law firm of Lax Vaughan Fortson Jones & Rowe, in a post-forensic audit observation of Sports Card Plus Inc. and the other insolvent business ventures of John Rogers

(Judge Appoints Receiver For 4 John Rogers Businesses)


“Anybody remember Tickle Me Elmo, that darn thing? You just never know what is going to get hot when you’re in retail.”

— Tracy Rosser, senior vice president of transportation for Wal-Mart Stores Inc., talking about the importance of logistics adapting to market conditions

(Transportation, Retail Companies Hoping to Keep Up With Supply Chain)


“I think more people are starting to take a more serious look at whether it might be time to change the system.”

— State Rep. Matthew Shepherd, R-El Dorado, about the question of whether Arkansas’ system of electing state Supreme Court justices and Court of Appeals judges needs reform

(Choosing Arkansas Judges: Elections or Selections?)


“He should’ve had enough money to pay everyone. He was trying to do a $6 million job for $3 million. He was just unrealistic.”

— Paul Fleming, president of Fleming Structural, the engineer of record for structural evaluation and renovation of the Main Street Lofts project on Scott Reed’s shortcomings as a developer

(Lawsuit, Liens Hit Scott Reed's Main Street Projects)


“It changed El Dorado, Arkansas. It became a forward-looking community. ... It just breathed life in this community.”

— Sylvia Thompson, the director of the El Dorado Promise, speaking about the program that provides a free college education for every graduate of El Dorado High School

(El Dorado Riding High on Murphy ‘Promise')


“I’ll miss it, but I’ll get over it.”

— Hugh McDonald, CEO of Entergy Arkansas, on his plan to retire in 2016

(Entergy Rolls With Industry Changes in Coal, Gas, Solar)


“We’ve never asked any questions about how our money was spent.”

— Russellville Alderwoman Freddie Harris about how tax money is being spent at the Arkansas Valley Alliance for Economic Development Inc.

(Russellville Alderwoman Freddie Harris Questions Development Funds)


“I’ve somehow been given a gift to assemble the right people, in the right place, at the right time. It’s worked out well. I feel I have a great organization.”

— Fort Smith nursing home magnate Michael Morton

(Nursing Home King Michael Morton Expanding His Empire)

Arkansas Business Presents The Best & Worst of 2015

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Best Investigative Journalist Working for Free

That’s Matt Campbell, operator of the political and legal blog the Blue Hog Report. There’s no doubt it’s left-leaning, but there’s also no doubt it’s effective, with Campbell having bagged three big trophies in the past couple of years: Lt. Gov. Mark Darr, now a former lieutenant governor; disgraced former Faulkner County Circuit Judge Mike Maggio; and plagiarist Dexter Suggs, formerly superintendent of the Little Rock School District. Campbell’s record is so solid, he can compete with those investigative journalists who actually get paid.

Worst Customer Service

In August, Payne Harding, the executive chef and co-owner of Cache Restaurant in Little Rock’s River Market District, dumped water on a small group of people protesting outside the restaurant while U.S. Sen. Ted Cruz and Gov. Asa Hutchinson were inside. Harding issued an apology a day later, saying his action wasn’t politically motivated, but he took his lumps on social media. In the spirit of the season, we give him the last word: “Cache is, and will always be, an establishment that welcomes everyone. There is no excuse for my actions, and I sincerely apologize.”

Best Highway News

The final piece of the Big Rock interchange in west Little Rock was opened to traffic in July with fanfare and much rejoicing for improved traffic flow. Motorists traversing the intersection of Interstates 630 and 430 greeted completion of the six-year, three-phase $150 million project with a marked reduction in braking and standstills.

Worst Media Contract

Affiliates of Digital First Media of New York supplied one of the most startling revelations regarding the alleged fraud-tainted wheeling and dealing of John Rogers.

In its lawsuit to recover 20 newspaper photo archives, the media concern disclosed that Rogers took possession of 13 archives without the legal nicety of a contract.

The complaint didn’t explain how Rogers was able to get the archives of newspapers such as the Los Angeles Daily News, New Haven Register and St. Paul Pioneer Press without a written agreement.

But he did.

According to the lawsuit, Rogers was supposed to provide a digital copy of the 20 archives but didn’t. He did turn Digital First photos into cash after lying and cheating his way into possession, allegedly.

Best Conflict Resolution

A Feb. 24 court-ordered auction ended long-running sibling differences over the operation of M.E. Black Farms, differences that grew into more than two years of litigation.

The sale, estimated at $85 million, resulted in a buyout of Deborah Tipton by her brother, George Dunklin Jr., now chairman and immediate past president of Ducks Unlimited.

The transaction encompassed more than 15,700 acres of farming and hunting property in Arkansas and Jefferson counties.

Worst Hype

Grainster, an online grain-trading startup business based in Conway, made a number of claims about how big it is going to be.

The company gushed it would be profitable in less than two years and add about 200 jobs in Arkansas. It also boasted it was a $200 million startup and had a potential valuation of $1 trillion in just 14 years. But upon further questioning, Grainster began providing caveats to the statements. It turned out that the company didn’t have the $200 million in hand, but claimed to have commitments over the next three years. And the person who supposedly gave Grainster officials the $1 trillion valuation denied making the statement.

Best New Steel Mill

Surely that’s the $1.3 billion Big River Steel facility going up near Osceola. Despite the August death of CEO John Correnti, the project is powering toward completion under the auspices of David Stickler, Correnti’s successor and senior managing director of Global Principal Partners of Miami, the investment group that arranged Big River Steel’s financing.

Worst Track Record

Scott Reed’s medicine show of redevelopment has produced zero completed projects since the Portland, Oregon, denizen rolled into Little Rock five years ago.

His legacy of liens and lawsuits, underscoring his financial troubles and inability to finish projects, grew this year with Main Street Lofts.

Three years after its announcement, much of the ground floor space is finished and occupied, but work on 30 upstairs apartments and more ground to a halt after the contractor walked off the job and filed a lien claim of $1.2 million for unpaid work in April.

Reed’s now 0-3 track record of overreaching, underfinanced, off-schedule, subsidy-supported efforts include:

  • The renovation of 30 residential properties, forfeited in 2012 after completing work on only one home and spending 17 percent of the project’s $1.8 million Neighborhood Stabilization Program funding.
  • K Lofts, mostly complete. But the 32-unit apartment project remains unfinished after five years and bears a $175,900 lien claim for unpaid construction work filed this year.

Best Unintended Consequence

Little Rock’s One Bank & Trust was an unintended beneficiary of a life insurance policy maintained by its former owner, chairman, president and CEO: Layton “Scooter” Stuart.

In September, the bank received a $6.9 million cut of the final distribution from Stuart’s life insurance payout. The payout came 30 months after his death as part of a settlement between One Bank, the U.S. Treasury and Stuart’s family.

The money helped rebuild the bank’s capital and represented a sizable token toward the alleged damages Stuart caused by his self-dealing.

Best Hype

Former Acxiom chairman and CEO Charles Morgan enlisted some big Arkansas names to wax enthusiastic about his memoir, “Matters of Life and Data,” published earlier this year. Dillard’s Chairman and CEO Bill Dillard hailed it as “A fascinating book!” Madison Murphy, chairman of Murphy USA, called it “An enjoyable and engaging book written by a man it is a privilege to know and work with.” Gen. Wesley K. Clark, former NATO Supreme Allied Commander, described it as “a story as American as apple pie.”

The book is, in fact, something of a page-turner, with purple passages like the following: “Data mining is the new gold rush, and we were there at first strike, dragging with us all our human frailties and foibles. In this book’s cast of characters you’ll find ambition, arrogance, jealousy, pride, fear, recklessness, anger, lust, viciousness, greed, revenge, betrayal — and then some.”

Morgan also frankly describes his acrimonious divorce and his dating dilemmas, quoting one colleague: “The big joke around the office … was that because Charles wasn’t good with names, we should get name tags for his dates to wear so he didn’t get confused.”

Amazon reviewers give it 4.6 out of 5 stars.

Best Making Up

For more than a year the Arkansas Osteopathic Medical Association opposed the establishment of an osteopathic medical school on the campus of Arkansas State University at Jonesboro. But since the Commission on Osteopathic College Accreditation in Chicago gave initial approval in April to establish the Jonesboro location, AOMA has improved its relationship with the New York Institute of Technology, which will operate the school. AOMA Executive Director Frazier Edwards said in August that it was “in conversations with NYIT on developing a relationship that will yield positive collaborations between our two organizations.”

AOMA has always supported the Fort Smith Regional Healthcare Foundation’s plans to launch the Arkansas College of Osteopathic Medicine. Both schools are scheduled to open next fall.

Best Reason to Understand the Question

The question on the home seller’s disclosure sheet appeared simple enough: whether, to your knowledge, “is there or has there ever been any past or present water intrusion?”

Kathleen “Kathy” Blasingame, who sold her Hillcrest home to Dr. Joel Dworkin for $1.25 million, said that “as I understood this question, I read it as water seeping into, being in the house, damaging the house, and I knew that had not happened.”

Dworkin thought otherwise and sued Blasingame, alleging she committed fraud by not revealing condition problems with the house, including leaky windows, when she sold it.

A Pulaski County Circuit Court judge ruled in favor of Dworkin and awarded him $102,200 in damages, and court costs and attorneys’ fees of $173,874, for a total judgment of $276,074.

Best Jury Award

A U.S. District Court jury in El Dorado awarded $72 million to Lion Oil Co. of Brentwood, Tennessee, which took its insurance carriers to court for not paying the multimillion-dollar claim tied to a months-long interruption of work at its oil refinery in El Dorado.

Worst Doctor

Dr. Robert Barrow of Little Rock pleaded guilty in October in U.S. District Court in Little Rock to conspiring to commit health care fraud that cost health insurance companies $2.2 million.

The 62-year-old, who owned and operated Your Doctor’s Office medical clinic, admitted that he conspired with Billy Marc Young, a local massage therapist.

Barrow referred patients to Young. Young’s services were then billed to health insurers under Barrow’s provider number as if they were physical therapy — even at times when Barrow himself was out of the state or out of the country in places like Las Vegas, Hawaii and London.

Best Branding

Yellow Rocket Concepts, the Little Rock restaurant juggernaut behind Big Orange, Local Lime, ZaZa, Lost Forty Brewing and Heights Taco & Tamale, is doing growth right. The partners — Scott McGehee, John Beachboard and Russ McDonough — are tireless in their pursuit of quality, as is Amber Brewer, brand manager and Beachboard’s wife, in her pursuit of consistency. The result is a fun, hip brand that offers good value and appears poised for continued expansion.

Worst Departure

Dr. Bart Barlogie, who is considered one of the top doctors in the world when it comes to treating myeloma, left the University of Arkansas for Medical Sciences at the end of August. Barlogie founded in 1989 the Myeloma Institute at UAMS in Little Rock and is now working at The Mount Sinai Hospital in New York.

Best Way to Keep Costs Down

Arkansas Business surveyed more than a dozen public colleges and universities across the state in 2015 and found two-year schools typically pay adjuncts between $1,200 and $2,000 per three-hour course taught, while four-year schools generally pay between $2,000 and $2,500. Adjuncts, who almost always hold graduate degrees, usually don’t have benefits. Many of the adjuncts would like to be full time or be on a tenure track, but those positions aren’t available. As a result, the adjuncts don’t have job security and might not be rehired at the end of the semester.

Worst OREO Sale

Call it the $11.1 million real estate auction that wasn’t.

Lex Golden, special assets manager at Allied Bank, talked in April about selling all of the bank’s OREO, which included property collected from bad real estate loans and closed bank branches.

Golden, whose family owns controlling interest of the bank, even scheduled a series of auctions July 21-24 toward that end.

But the auction didn’t convert much property into cash.

Allied Bank began the third quarter with $11.1 million in OREO, and ended with $10.6 million.

Meanwhile, Allied’s parent company, Acme Holding Co., drifts toward liquidation after its Chapter 11 bankruptcy was converted to Chapter 7 this summer.

Allens Inc. Cited by USDA for Unpaid Produce

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You may have missed this item from The Produce News, a trade magazine that covers the produce industry: Bankrupt Allens Inc. of Siloam Springs has been cited by the U.S. Department of Agriculture for failing to pay for $9.8 million worth of produce.

The report stemmed from a news release last week that said Allens, which is in Chapter 7 liquation, failed to pay 40 produce sellers for 2,300 lots of produce. That is a violation of the Perishable Agricultural Commodities Act, which means Allens can’t operate in the produce industry until Dec. 2, 2017. The news release said that the company’s principals have challenged the finding.

As you know, the former family-owned vegetable processor and food-service provider only exists in bankruptcy court. Sager Creek Vegetable Co. bought Allens’ assets out of bankruptcy in 2014. Then Del Monte Foods Inc. of San Francisco announced it was buying Sager Creek in March.

Allens’ Chapter 7 trustee, R. Ray Fulmer II of Fort Smith, said he hadn’t seen the USDA filing as of Thursday and wasn’t sure what the impact would be on Allens.

“There’s very little money that’s been recovered,” Fulmer said. “There’s been almost none paid out.”

Allens’ bankruptcy dates back to 2013. The claims register summary shows 202 claims have been filed totaling $149.5 million.

Fulmer has a lawsuit pending that is seeking to recover millions from the company’s former officers, Roderick “Rick” Allen, who was chairman of the board, and his sons Josh Allen and Nick Allen, who were the CEO and executive vice president.

The Allens have denied the allegations of wrongdoing in the company’s filings.

“I anticipate that additional litigation could be undertaken,” Fulmer said. “I’m not saying ‘will be’ but we’re still looking at some things.”

He declined to say what he was considering.

Fulmer wants to make sure he’s turned over every vegetable can looking for “every possible course of recovery before we throw our hands up,” he said. “There are a lot of medium to small businesses that went unpaid. And I would really like to see some sort of dividend be available for them.”

Buying Sprees of Arkansas Banks Tops List of Top 10 Arkansas Business Stories of 2015

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The acquisition trail was well traveled by Arkansas lenders in 2015, with the most prominent destinations for new deals lying in Georgia, Florida and Missouri.

Little Rock’s Bank of the Ozarks Inc. led the procession with a string of out-of-state stock-swap transactions valued at almost $1.5 billion.

The biggest of the bunch was its record-setting deal to buy the $4.4 billion-asset Community & Southern Bank of Atlanta in a buy valued at nearly $800 million.

Announced Oct. 19, the deal represents the single largest acquisition by an Arkansas bank in terms of both purchase price and assets acquired — ever.

Bank of the Ozarks followed that up with a Nov. 9 announcement of its pending $402.5 million stock swap deal for $1.7 billion-asset C1 Bank of St. Petersburg, Florida.

The addition of Community & Southern and C1 will push the $9.3 billion-asset Bank of the Ozarks beyond the $15 billion mark and establish it firmly as the second-largest lender based in Arkansas.

For now, Arvest Bank of Fayetteville remains the largest financial institution in Arkansas with total assets of $15.6 billion.

Bank of the Ozarks completed two other deals in 2015 to grow its franchise: $1.4 billion-asset Intervest National Bank of New York, a $228.5 million deal that closed on Feb. 11; and $345 million-asset Bank of the Carolinas of Mocksville, North Carolina, a $64.7 million deal that closed on Aug. 6.

Little Rock’s Bear State Financial announced and closed its first significant out-of-state deal, which expanded its holdings into southwest Missouri.

The $70 million purchase of $454.9 million-asset Metropolitan National Bank of Springfield also ushered in a new CEO: Mark McFatridge, former CEO of Metropolitan. The acquisition moved total assets at Bear State to nearly $2 billion.

Simmons First National Corp. of Pine Bluff completed tandem out-of-state, stock-swap purchases during the first quarter that increased its asset total to more than $7.6 billion, a whopping 65 percent jump.

In addition to the acquisitions of First State Bank of Union City, Tennessee, and Liberty Bank of Springfield, Missouri, Simmons closed on a $20.7 million purchase announced in April.

Closed on Oct. 30, the Ozark Trust & Investment Corp. of Springfield, Missouri, deal pushed assets under management at Simmons to $4.5 billion. Its Trust Co. of the Ozarks subsidiary had $1.1 billion in assets under management with more than 1,300 accounts and clients.

Home BancShares Inc. of Conway announced and completed two deals that enlarged its Florida holdings. The $101.6 million deal for Bay Cities Bank of Tampa brought $530 million in assets, which pushed Home’s total to $9 billion.

Centennial Bank also bought the Florida Panhandle deposits of Doral Bank of San Juan, which was shut down by the Federal Deposit Insurance Corp. The deal represented deposits of about $466 million.

Four Arkansas lenders in the northwest quadrant of the state attracted suitors whose overtures culminated in definitive merger agreements:

  • The $195 million-asset Benefit Bank of Fort Smith became part of Armstrong Bank of Muskogee, Oklahoma, after a $32 million sale to Armstrong’s parent company, Ironhorse Financial Group Inc.
  • The $358 million-asset Bank of Fayetteville sold for $42.3 million to Farmers & Merchants Bankshares Inc. of Stuttgart.
  • The $133 million-asset Parkway Bank of Rogers was poised to sell for $21.8 million to Citizens Bancshares of Batesville Inc.
  • The $112 million-asset Twin Lakes Community Bank of Flippin (Marion County) was positioned to sell in a $15.2 million deal to First National Bancorp Inc. of Green Forrest (Carroll County), parent of Anstaff Bank.

2. Political Scandals

Hardly a year passes that some Arkansas politicians don’t do something scandalous, but 2015’s political scandals have risen above the run-of-the-mill.

In March, Arkansas Times reporter Benjamin Hardy reported that Rep. Justin Harris, R-West Fork, and his wife had given their two adopted daughters to another couple, where one of the girls was sexually abused. The scandal became national news, and while Harris defended the decisions he and his wife made, he subsequently voted for a new law that made such “rehoming” a felony and announced that he would not seek re-election.

Matt Campbell, the Little Rock attorney whose online outlet is called Blue Hog Report, took two more trophies in 2015: Faulkner County Circuit Judge Mike Maggio and former Little Rock School District Superintendent Dexter Suggs.

Maggio in January waived indictment and pleaded guilty to a federal charge of accepting a bribe in the form of campaign contributions from nursing home magnate Michael Morton in 2013. In return, he lowered a jury’s $5 million verdict against one of Morton’s nursing homes to $1 million, as Campbell had noted in 2014. (Morton has not been charged with any crime.)

Suggs resigned in April, a week after Campbell presented evidence that his dissertation contained significant plagiarism. Indiana Wesleyan University subsequently stripped him of his doctorate.

Political scandals that broke in earlier years still garnered headlines in 2015. Martha Shoffner, the Democrat who resigned as state treasurer in disgrace in 2013, began serving a 30-month sentence in federal prison for bribery and extortion. Former state Paul Bookout, the Jonesboro Democrat who resigned as state senator in 2013, pleaded guilty in March to the federal felony of wire fraud for using campaign contributions for personal expenses, but he isn’t scheduled to be sentenced until March 2016.

Steven Jones, the deputy director of the Arkansas Department of Human Services and a former state representative who pleaded guilty last year to accepting bribes, got company this year. Phillip W. Carter, a former West Memphis City Council member and juvenile probation officer in Crittenden County, pleaded guilty to being part of the scheme to bribe Jones, and Ted Suhl, owner of Trinity Behavior Healthcare at Warm Springs (Randolph County) and other behavioral treatment facilities, was accused in a federal indictment of being the source of the bribes.

(Suhl wasn’t alone in being accused of bribing DHS employees. A case that began in December 2014 grew to include four operators of feeding programs for the poor who allegedly bribed two DHS workers to approve inflated claims on U.S. Department of Agriculture funding.)

While he doesn’t appear to have broken any laws, Michael Lamoureux, the former president of the state Senate who is now chief of staff to Gov. Asa Hutchinson, got critical attention when the Associated Press reported that he had been paid $120,000 in 2013 by a nonprofit called the Arkansas Faith & Freedom Coalition, which had total revenue that year of about $140,000 contributed exclusively by lobbyists.

3. New Faces in State Government

A new Republican governor in 2015 and the Republican sweep of state offices last year meant a transformation at the state’s highest bureaucratic levels and many new faces in Arkansas government.

One of the most important changes came early in the year, when on Jan. 9, then-Gov.-elect Asa Hutchinson chose Larry Walther of Little Rock as director of the state Department of Finance & Administration to succeed the long-serving and well-respected Richard Weiss. Walther headed the Arkansas Department of Economic Development (now the Economic Development Commission) under Gov. Mike Huckabee, was director of the U.S. Trade & Development Agency and was a member of the board of the Export-Import Bank of the United States from 2011-2013.

A stream of new appointments followed, beginning even before Hutchinson was sworn in on Jan. 13. Among the most significant:

  • Fayetteville lawyer Leon Jones Jr. to head the Arkansas Department of Labor, replacing Ricky Belk.
  • Brett Powell, vice president of administrative services at Ouachita Baptist University, chosen by the Arkansas Higher Education Coordinating Board — and confirmed by Hutchinson — to head the state Department of Higher Education. He replaced Shane Broadway, who took a governmental relations post with Arkansas State University.
  • Edmond Waters of Little Rock, a former vice president of A.G. Edwards & Sons, commissioner of the Arkansas Securities Department, replacing Heath Abshure. Abshure’s term was occasionally marked by heated exchanges with the Legislature and complaints from the business community he regulated.
  • Johnny Key, a former state senator and associate vice president for university relations at the University of Arkansas System, as the new commissioner of education and the administrative head of the Arkansas Department of Education. Key replaced Tony Wood. Legislators obliged Hutchinson’s request to change the requirement that the commissioner be an educator with a master’s degree — qualifications Key didn’t have, though as a state legislator he served on the Senate Education Committee, including a stint as chair.
  • Mike Preston, director of the Arkansas Economic Development Commission, replacing Grant Tennille. Preston previously served as director of government relations for Enterprise Florida, the chief economic development organization for the state of Florida.
  • And most recently, Kane Webb, a veteran journalist, director of the Arkansas Department of Parks & Tourism. Webb, a former editor at Arkansas Business who taught for a year at Little Rock’s Catholic High School for Boys, most recently had served on Hutchinson’s staff as a senior adviser. He succeeded the retiring Richard Davies.
  • In addition, John Selig, director of the Arkansas Department of Human Services, the state’s largest agency, announced in October he would leave his post by the end of this year. DHS oversees the “private option,” the state’s plan to cover low-income Arkansans using federal money available under the Affordable Care Act. A task force assembled by Gov. Asa Hutchinson is examining ways to change the private option.

4. Downtown Redevelopment

Cities in Arkansas that made revitalizing their downtown areas a priority took great strides toward that goal in 2015.

In the same year that CJRW moved into its renovated quarters on Little Rock’s Main Street, the city announced that phase one of its Technology Park is scheduled to open on Main Street in the fall of 2016. The $100 million park is planned to be a percolator for startups, entrepreneurs and IT and design firms.

Phase one is the development of 40,000 SF of office space on Main Street, and future phases will include a wet/dry lab on Main Street, a parking deck with ground-floor retail and restaurant space and repurposing the Worthen Building on the southeast corner of Capitol and Main.

“We’re building a home base for these emerging tech companies to be able to build and stay in Little Rock,” said Brent Birch, the executive director of the Tech Park. “We have these companies today but they’re scattered.”

That’s part of the reason Tyson Foods Chairman John Tyson elected to return his company’s presence to Emma Avenue in downtown Springdale. Springdale’s downtown, long a neglected relic, sprung to life with the opening of the Razorback Greenway, a 36-mile multiuse trail, a part of which snakes through downtown.

Tyson and members of the Walton family bought properties downtown, spurring a renewed interest in the area. The city is producing a Downtown Master Plan that calls for $20.5 million in improvements.

John Tyson attended a wrecking-ball ceremony in October at the site of Tyson’s planned new office building, which will house about 300 workers; another Tyson building down the street will have 75 workers.

“Springdale has been a cornerstone for my granddad, for my dad and for myself,” Tyson said. “Downtown Springdale is where we started.”

Bentonville’s downtown growth is still going strong after having taken off with the opening of Crystal Bridges Museum of American Art in 2011. Since then, retail and restaurants have flocked to the downtown area to take advantage of the museum’s popularity. One example: Thrive Apartments, a multiuse complex with 62 units just off the square, which filled up within one month of opening.

Fayetteville’s downtown resurgence is all about starting — starting up, that is. When Casey Kinsey moved his Web development firm, Lofty Labs, to a building on East Center Street, he joined a popular trend. Kinsey’s office is just above Jeff Amerine’s Startup Junkie Consulting, which is just across the square from John James’ Hayseed Ventures, the startup funding organization James left Acumen Brands to run full time.

The Fayetteville Chamber of Commerce paid $2.4 million for a 24,600-SF building at 21 W. Mountain St. that will house the chamber and the Arkansas Regional Innovation Hub.

“We moved right into the tech hotspot,” Kinsey said. “It’s a startup alley.”

5. New Hospital Plans

Arkansas’ health care landscape continued to shift in 2015, from major organizations forming partnerships to the announcement of a new Arkansas Children’s Hospital in northwest Arkansas.

In October, one of the biggest health care announcements came when four hospital organizations and Arkansas Blue Cross & Blue Shield said they had formed The Partnership, a shared service organization. The hospitals are Baptist Health and the University of Arkansas for Medical Sciences, both of Little Rock; St. Bernards Healthcare of Jonesboro; and Washington Regional Medical System in Fayetteville. The organizations said the collaboration would develop programs that improve health care quality and lower costs for patients and providers across the state.

But it wasn’t the only partnership announced during the year. In August, CHI St. Vincent of Little Rock said it had signed a five-year management agreement with Conway Regional Health System. The partnership is designed to improve access and quality and reduce the cost of care. Chad Aduddell, CHI St. Vincent’s chief executive officer, said the move was made because the cost of health care has become unsustainable, “both nationally and locally.”

The two health care companies also said in August they were forming a new organization, Arkansas Health Alliance, designed to help independent community hospitals and health care systems work together.

Meanwhile, Arkansas Children’s Hospital of Little Rock said in August it would build an approximately $100 million children’s hospital in Springdale that is projected to open in early 2018. Construction is expected to start in the spring at the 37-acre site. Total cost of the hospital, including the furnishings and operating costs for five years, is estimated at $184 million.

In December, St. Bernards Medical Center in Jonesboro announced a $130 million, four-phase construction plan that will add a five-story surgical and intensive care centers tower; expand its cancer center and renovate existing structures. The entire project is expected to be completed in 2019.

In the fall of 2016, two osteopathic schools are expected to start teaching students. In December, the Commission on Osteopathic College Accreditation endorsed New York Institute of Technology’s plans for a College of Osteopathic Medicine on the Arkansas State University at Jonesboro campus. The endorsement allows NYIT to open in August with 115 students.

Construction also is underway on the Arkansas College of Osteopathic Medicine in Fort Smith, developed by the Fort Smith Regional Healthcare Foundation. The Fort Smith college also is aiming for an August 2016 opening after construction is completed in May.

6. Highway Acceleration

Congress did its part, finally, when it passed a long-term highway funding bill and President Barack Obama signed it into law Dec. 4.

The Fixing America’s Surface Transportation Act will provide $305 billion over the next five years, a welcome development after 35 short-term fixes during the past decade. Long-term funding means states such as Arkansas can now formulate long-term plans to repair and replace highways and bridges.

“It’s good news for Arkansas because it allows us to plan five years into the future,” said Danny Straessle, spokesman for the Arkansas Highway & Transportation Department. “This is what we’ve been looking for: a long-term solution. Five years is a good start.”

Arkansas Gov. Asa Hutchinson formed a working group this year to come up with recommendations for how the state can raise $160 million annually in state funds during the next three years. Federal funding is 80 percent of highway costs so the state has to come up with its 20 percent match.

The AHTD has plans for the money, too. This year it announced a $450 million project to widen Interstate 30 through Little Rock and replace the Arkansas River Bridge over a 7-mile stretch that Straessle said sees 125,000 vehicles daily.

Also included in the work would be lane widening on I-40 between JFK Boulevard and U.S. Highway 67/167 in North Little Rock and improvements to the Interstate 630 exchange in Little Rock.

Critics of the project said expanding I-30 to 10 lanes would be too costly and hinder downtown development, while fixing arterial roads would be a more efficient way to address traffic problems. Straessle acknowledged that the price tag for I-30 could go up another $200 million.

Widening I-30 would just move traffic congestion to another area, which would lead to an “endless cycle,” said Jim McKenzie, executive director of Metroplan, a voluntary group of local governments that serves as the region’s planning agency.

For federal money to be used for the I-30 project, McKenzie said, it has to conform to Metroplan, which caps the interstate system at six lanes. Metroplan would have to waive that requirement, about which McKenzie was noncommittal.

“Everybody is working very hard to make this a good and doable project,” McKenzie said. “But we’re just not there yet.”

Earlier this year, the AHTD postponed bids on 87 projects because of the uncertainty of federal funding. It might not look it, but Arkansas is awash in highways — ranking 12th among the states with 16,000 highway miles.

Arkansas also maintains 12,000 city, county and state bridges, of which 861 were ranked structurally deficient in 2014.

7. Same-Sex Issues

Same-sex marriage and other issues regarding gay rights continued to generate controversy in Arkansas as they did throughout the United States this year, controversy that prompted action by powerful business interests like Wal-Mart.

In January, the U.S. Supreme Court announced it would review an appeals court decision that upheld bans on same-sex marriages in four states. The Arkansas Supreme Court in November 2014 had heard a challenge to the state’s gay-marriage ban but, in a controversial delay, had not issued a ruling.

In February, the state’s high court told lawyers to argue which justices should hear the case because its membership had changed on Jan. 1, six weeks after oral arguments were heard in the case.

While Arkansans were waiting for the state Supreme Court to rule, several cities in the state began working on ordinances prohibiting discrimination against homosexuals in hiring, housing and business and public accommodations.

At the same time, the Arkansas Legislature in February approved Act 137, which prohibits cities from barring discrimination against any groups not already covered under state law. Gov. Asa Hutchinson allowed it to become law without his signature.

Legislators in late March then sought to pass the Religious Freedom Restoration Act, which opponents said would allow businesses to refuse service to homosexuals and the transgendered. Hundreds of foes of the RFRA demonstrated at the state Capitol, and Apple CEO Tim Cook criticized the proposal as well as similar legislation in other states like Indiana.

Wal-Mart CEO Doug McMillon joined Cook and other business leaders in opposing the measure, and McMillon asked Hutchinson to veto it, saying it “threatens to undermine the spirit of inclusion present throughout the state of Arkansas and does not reflect the values we proudly uphold.”

Hutchinson then called for changes in the bill to bring it closer to federal law. He signed the compromise legislation on April 2.

Meanwhile, the Arkansas Supreme Court decided that a new case was necessary before it could determine whether gay marriage was legal in the state, a decision that, observers correctly noted, would probably delay its consideration of the issue until after the U.S. Supreme Court decided the matter.

On April 8, in a highly unusual move, state Supreme Court Chief Justice Jim Hannah and Associate Justice Paul Danielson recused from the case to decide which justices should rule on gay marriage in Arkansas. “I believe that a majority of this court has created out of whole cloth an issue to delay the disposition in Smith v. Wright, No. CV-14-427,” the gay-marriage case, Hannah wrote.

On June 26, the U.S. Supreme Court declared same-sex marriage legal throughout the land. The Arkansas Supreme Court then dismissed the state’s gay-marriage case.

In November, news media reported that retired Justice Donald Corbin, in an oral history about the court, said that the state’s justices had in fact decided by 6 to 1 to strike down Arkansas’ ban on gay marriage but the ruling was never issued.

8. Educational Reboots

It’s almost cheating to call this one story, but efforts to update and upgrade education in Arkansas have grabbed a lot of headlines in 2015.

The news started in January with the Arkansas Board of Education’s controversial decision to take control of the Little Rock School District, the state’s largest, because six of its 48 schools were deemed to be in academic distress. While Dexter Suggs was originally allowed to continue as superintendent, he resigned in a plagiarism scandal in April and was replaced by Little Rock attorney and former school board member Baker Kurrus.

In February, newly installed Gov. Asa Hutchinson made good on a campaign promise by signing the first-in-the-nation law requiring all public and charter high schools to offer computer science courses. In the fall semester, enrollment in high school computer courses grew by 260 percent to nearly 4,000.

In March, Hutchinson signed legislation to overhaul the state’s career education system to better align higher education offerings with the needs of industries in the state, and by the fall the state Department of Workforce Services was making grants as part of the new Arkansas Sector Partnership initiative.

In September, eVersity, the University of Arkansas System’s online-only university, began accepting applications, and the first classes will start Jan. 10. Students take one course at a time, and each course last six weeks.

Other educational changes in 2015 include a crop of new college chancellors and presidents. Roderick L. Smothers assumed the presidency of Philander Smith College in Little Rock in January. Rex Horne resigned as president of Ouachita Baptist University at Arkadelphia in May, and Charles Wright is serving as interim president. Trey Berry succeeded David F. Rankin as president of Southern Arkansas University at Magnolia in June.

Three new chancellors won’t officially start work until January.

Joseph E. Steinmetz, executive vice president and provost of Ohio State University, will become chancellor of the University of Arkansas at Fayetteville on Jan. 1. He will succeed Dan Ferritor, who has been interim chancellor since David Gearhart retired in July.

The University of Arkansas at Monticello will get its new chancellor on Jan. 15. She is Karla Hughes, previously EVP and provost of the University of Louisiana System. Jay Jones acted as chancellor after the retirement of Jack Lassiter a year ago.

Another Karla will become chancellor of Arkansas State University’s two-year college at Beebe on Jan. 16. Karla Fisher has been vice president of academics at Butler Community College in Kansas. She will succeed Eugene McKay, who is retiring after almost 50 years at ASU-Beebe, including the past 21 as chancellor.

Joel Anderson has announced his retirement as chancellor of the University of Arkansas at Little Rock at the end of June 2016.

9. Wal-Mart Struggles

Some retail watchers wondered in 2015 whether Wal-Mart Stores Inc. had finally become too big to manage. Despite being No. 1 on the Fortune 500 list with revenue of $485.7 billion for its fiscal year that ended Jan. 31, Wal-Mart faced a number of challenges.

In October, the retailer laid off 450 workers from its home office in Bentonville. It also warned the investment community that its earnings per share could fall 6 to 12 percent for its fiscal year that starts in February. That news sent Wal-Mart’s stock price tumbling by 10 percent, the largest drop in more than six years. As of the close on Tuesday, its stock price was $60.39.

Wal-Mart blamed part of the slump in earnings on spending to improve its stores, workforce and e-commerce.

To boost its online sales — which were $12 billion for the fiscal year that ended in January, far behind that of the online leader, Amazon — Wal-Mart said it would spend more than $2 billion on its e-commerce and digital capital expenses during the current fiscal year and the next.

Wal-Mart also said in February that it would start paying employees a minimum of $9 an hour this year and $10 in 2016. A number of Wal-Mart’s competitors were already paying $9 per hour or more, and union groups hammered Wal-Mart for not paying higher wages. Still, the announcement touched off a minimum wage race as other retailers said they too would increase their minimum wage to $9 an hour or higher.

Wal-Mart also announced some top management changes. Chief Financial Officer Charles Holley said he will retire at the end of the year after more than 20 years with the company. He will be replaced by Brett Biggs, who has been an executive vice president and CFO of Walmart International.

Other developments of note regarding public companies in Arkansas:

  • In October, Windstream Holdings Inc. of Little Rock announced a $575 million all-cash deal to sell its data center business to TierPoint LLC of St. Louis, a privately held data center services company. Windstream will then partner with TierPoint, allowing Windstream to continue to sell cloud computing services.

    Windstream also reported a fiscal second-quarter loss of $111.2 million on revenue of $1.4 billion. That’s compared with net income of $14 million on revenue of $1.42 billion during the same quarter last year.
  • Dillard’s Inc.’s stock price slid 45.1 percent between its opening of $125.44 on Jan. 2 to the close on Dec. 14. Between Jan. 2 and Dec. 30, 2014, its stock price increased 28.2 percent.

10. John Rogers’ Woes

The world became a smaller place for John Rogers this year as the walls pressed in on the fallen sports memorabilia and photo archive dealer.

Rogers spent seven nights behind bars during two jail stints, was forced to surrender his passport and was fitted with an electronic ankle bracelet to make sure he didn’t violate a court order to not leave Arkansas.

A bench warrant for contempt of court for disregarding a court order to provide asset information to First Arkansas Bank & Trust of Jacksonville led to a two-night sleepover at the Pulaski County Detention Center in July.

The action stemmed from a default judgment the bank landed against Rogers in January that has since grown to more than $15 million. The 42-year-old businessman lost his wheels when First Arkansas seized his 2003 GMC Yukon on Aug. 21 as part of its collection efforts.

A late-night visit to his former North Little Rock offices in August resulted in a Dec. 3 arrest on felony charges of burglary and theft of property. Rogers made bail after a five-night stay at the county lockup that preceded his bond hearing.

The misbehavior that prompted his run-ins with local judiciary and law enforcement was on top of his purported misdeeds as an alleged serial fraudster. Counterfeit sports memorabilia, forged signatures on bogus contracts, phantom transactions used to borrow millions of dollars and bank fraud remain subjects of an ongoing federal investigation.

Rogers started 2015 as a defendant in six lawsuits, and seven more joined the party this year. The list of plaintiffs stretched beyond Arkansas west to Texas, Colorado, Utah, California, New Zealand and Australia while extending north and east to Minnesota, Wisconsin, Illinois, New Jersey, New York, Massachusetts and Connecticut.

Aggrieved lenders, investors and more sent the tally of known judgments and claims against Rogers and his Sports Cards Plus ventures to more than $48 million. That amount is doubled with the inclusion of punitive damages sought in some cases.

A court-appointed receiver has overseen his North Little Rock business since January after Rogers was removed from the management and ownership picture in 2014.

Rogers touted the value of his photo archives and other assets at $300 million while operational results indicate a business worth far less. This year, the findings of a forensic audit commissioned by the IRS revealed that his business didn’t cash flow during 2011-14.

His corporate financial records were in such disarray that an assessment of operations prior to 2011 was deemed of questionable value. The audit findings indicated that he and his family were able to live large thanks to other people’s money, not profits.

The 12,400-SF manor Rogers had built in North Little Rock’s Park Hill neighborhood entered foreclosure in August along with business property, all tied to $3.5 million of delinquent debt.

Rogers was suspected of helping orchestrate an unsuccessful one-two-three-strike effort to acquire his former business by Red Alert Media Matrix.

The asset-less venture made successive unsubstantiated cash offers of $59 million in January, $28 million in April and $18 million in June to buy the Rogers assets.

Without verified funds and questions about millions of shares of unregistered stock that were part of its last two offers, Red Alert was rejected by Pulaski County Circuit Judge Chris Piazza.

Red Alert placed an incredible paper value of $972 million on the stock. The number is tied to the astounding “insurable value” of $1.5 billion for the assets of the insolvent Rogers ventures.

Asa Hutchinson on Economic Qualities That Make Arkansas an 'Easy Sell'

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Asa Hutchinson, a Republican, was sworn in as the 46th governor of Arkansas in January after defeating Democrat Mike Ross in 2014.

Hutchinson earned a bachelor’s degree in accounting in 1972 from Bob Jones University in Greenville, South Carolina, and a law degree in 1975 from the University of Arkansas School of Law. He was named a U.S. attorney in 1982 by President Ronald Reagan, becoming the youngest U.S. attorney in the nation.

Hutchinson served as U.S. representative from Arkansas’ 3rd Congressional District from 1997-2001, resigning on Aug. 6, 2001, to become director of the Drug Enforcement Administration. He left that post to serve as undersecretary for Border & Transportation Security at the U.S. Department of Homeland Security in 2003-2005. In 2006, Hutchinson lost in his race for governor to Democrat Mike Beebe. Hutchinson is chairman of the Southern Regional Education Board and the Southern States Energy Board and vice chairman of the National Governors Association Homeland Security & Public Safety Committee.

Hutchinson was born on Dec. 3, 1950, in Bentonville. He and his wife, Susan, have four children and five grandchildren.

What did your administration do to firm up the Sun Paper deal?

It was very important for me to be in China and meet face to face with Chairman Li Hongxin at Sun Paper. Our in-person meeting led to the letter of intent, which gave very specific timelines for site selection, for hiring consultants and for negotiating incentives. Sun Paper is very committed to opening a $1.3 billion dollar fluff mill in South Arkansas, and I am optimistic this intent letter will turn into a reality. It’s a solid commitment to look at Arkansas, and I am confident our one-on-one exchange will result in more jobs for our state.

When you are working to sell Arkansas to industrial and other business prospects, what qualities or circumstances about the state do you cite? And how do you counter negative impressions?

When selling Arkansas, I first emphasize the connection between the state and our global partners, such as Wal-Mart, Tyson, the Clinton Presidential Library and more. These are easily recognizable, well-known global leaders. Tying their success to Arkansas is a great selling point for us in terms of identity.

Secondly, I emphasize our diverse base of resources. I recognize our strong agricultural base, which is Arkansas’ No. 1 industry, our steel production in northeast Arkansas and raw materials such as timber and other valuable natural resources. I also highlight our computer coding initiative, our success in career and technical educational opportunities, our job skills training and our workforce.

There is much to sell in Arkansas. And it’s an easy sell when I get to talk about all the great qualities of our state. I find it difficult to talk in terms of negatives, because I don’t really think there are negatives. But if I had to focus on something, I would recognize our efforts to address a tax code that is not as competitive with our surrounding states as I would like it to be. This is the primary reason I am trying to further reduce the state income tax rate in Arkansas.

The upcoming legislative session is a fiscal session. What are your goals for this session?

The fiscal session is designed to take a quick look at where we are in terms of our budget and make any adjustments that are needed. Some budget adjustments will be necessary in terms of cost changes regarding Medicaid reform, as well as taking a look at the needs of our foster care and corrections systems. These are the type of priority adjustments to our budget that might be necessary in the upcoming legislative session.

John Selig is leaving as director of the state Department of Human Services at the end of this year. That’s a huge department and a huge job. What are you looking for in his replacement?

I’m looking for a highly qualified candidate in terms of management with experience handling large systems, such as the Medicaid program. It would certainly be a bonus if the new director had some experience in dealing with human services. But I think what we need in terms of a DHS director is someone who knows how to manage people and how to lead a large organization. The director’s specific expertise is secondary to the ability to manage people effectively and handle large systems.

Philosophically, what are the fairest ways to fund highway construction in Arkansas?

The fairest way to fund highway construction is through use taxes for those who actually use the highways. We have traditionally done this through excise taxes on motor fuel. But there is a debate as to whether the user tax should extend to other transportation products, such as automobiles, tires or batteries. This tax has had a significant general revenue impact, but has also been resisted in the past. However, there are many legislators reconsidering it as an appropriate use tax to fairly fund our state highways.

What is the single most important thing for the Health Reform Legislative Task Force to achieve?

The most important thing to achieve is a consensus on the direction of Medicaid reform. With differing views, consensus is always difficult, but I am optimistic the legislative task force can achieve that consensus on being able to continue access to expanded health insurance coverage for Arkansans. At the same time, we need to ensure conservative work-related principles are applied in developing a health care system our state can afford and maintain.

You are known for your even temper. What makes you angry?

Not much makes me angry, but I do expect people to listen to other points of view and to seek out different perspectives on an issue before making a final decision. And when someone is not willing to listen, how can they arrive at the correct decision? To me, being able to consider other points of view and see the value in other perspectives is an important part of being a leader or for anyone who works in government.

What has surprised you most about being governor?

The thing that has surprised me most about being governor is the demands on my time. While I was on the campaign trail, I became very familiar with having a full schedule. The legislative session kept me busy, but I haven’t slowed our pace. When you have a full agenda to accomplish, it’s important to spend as much time as possible working toward those goals.

What are you proudest of having achieved as governor so far?

What I’m most pleased with is that we have been able to accomplish what we promised the people of Arkansas we would work on — from the $100 million income tax cuts, to computer coding in every high school, to improving job skills education in this state. Keeping promises is an important legacy. And that’s a legacy I am proud to be part of in Arkansas.

Burgundy Book: Manufacturing Struggles, Retail Construction Strong

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According to a November survey of business contacts, 48 percent expect that economic conditions in 2016 will be somewhat better than in 2015, while only 14 percent of contacts expect economic conditions will be somewhat worse.

That's according to the fourth-quarter Burgundy Book (PDF), published Dec. 18 by the St. Louis Federal Reserve. The Little Rock Zone includes most of Arkansas except for the northeast part of the state. The zone covers about 2.5 million people, including the 710,000 who live in the Little Rock metropolitan statistical area.

Measured from a year earlier, nonfarm payroll employment in the Little Rock MSA rose 2.3 percent in the third quarter of 2015. That was the strongest growth since the third quarter of 2006, the report said.

The zone’s unemployment rate averaged 5.1 percent in the third quarter, its lowest level since the third quarter of 2008.

Single-family building permits increased in four of the zone's six MSAs. Home prices were up from a year earlier in all six MSAs, paced by increases in the Hot Springs and Texarkana MSAs that exceeded the national average.

The report also show commercial real estate activity as mixed in Little Rock.

"One noticeable change is with retail demand and availability," a Little Rock area real estate contact said in the report. "More build-to-suit projects due to growth in consumer spending."

Per capita total debt balances rose in the Little Rock Zone in the third quarter, as mortgage debt rose from year-earlier levels for the first time since 2012.

In the third quarter, return on average assets at Arkansas banks remained appreciably higher than at U.S. peer banks. Arkansas bankers reported that loan demand in the fourth quarter was unchanged from a year earlier.

According to preliminary estimates, Arkansas farmers harvested less corn, cotton and rice in 2015 compared with a year earlier. This is in part attributed to rain during planting season. But the poultry industry is seeing growth.  

"We are kind of an anomaly in the chicken industry," an Arkansas chicken farmer said in the report. "We are starting 14 new houses per month at my company.”

Manufacturing activity has slipped in Arkansas and manufacturing employment in the state is now nearly 20 percent below its pre-recession level. According to the report, manufacturing export decreases were driven by declines in exports of transportation equipment, fabricated metal products, primary metals and food products. 

"I’m concerned about low oil prices and their effect on manufacturing," a Little Rock area transportation executive said in the report. 

Defying Fed Hike, 30-Year Mortgage Rate Slips to 3.96 Percent

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WASHINGTON — What Fed rate hike?

One week after the Federal Reserve raised short-term interest rates from record lows, the average on a 30-year fixed-rate mortgage went the other way: It dipped to 3.96 percent from 3.97 percent last week, mortgage giant Freddie Mac says.

The drop is a reminder that the Fed has only an indirect influence on long-term mortgage rates, which more closely track the yield on the 10-year U.S. Treasury note. And that rate, in turn, tends to stay down as long as inflation remains low and investors keep buying Treasurys. The 10-year Treasury yield has declined slightly since the Fed's hike last week.

The 30-year mortgage rate was a bit lower a year ago — 3.83 percent. But many analysts expect it to stay historically low for months.

(Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)


No Daily Report, Morning Roundup on Friday

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Arkansas Business will not send the Daily Report and Morning Roundup on Friday, Christmas Day.

The Daily Report and Morning Roundup will return Monday. 

Arkansas Business Publishing Group offices are closed through Monday, Jan. 4. ABPG wishes everyone a safe and happy holiday. 

2015: The Year in Executive Q&A

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Dear Readers,

Last week Arkansas Business subscribers received the Book of Lists, in which we compile most of the business lists that we published throughout 2015. Lists like that — the biggest law firms or the highest-paid executives or the most profitable banks — appeal to the part of the human brain that likes to see data organized (especially the kind of data that can translate directly into business contacts and sales leads).

This week, for the second time, we offer a compilation that appeals to the universal interest in other people: all 50 of 2015’s “Executive Q&A” features in the first issue of Arkansas Business for 2016.

Executive Q&A is not hard-hitting journalism. We don’t set out to grill the executives who agree to answer questions for us. (In fact, if we suspect we need to grill someone, we don’t ask him or her to participate in this particular feature.) But we do look for a variety of subjects from all over Arkansas and from a broad cross-section of our state’s industries and institutions. We ask questions about the individual, his company and his industry or area of expertise. We try to ask questions that will elicit candid and enlightening answers, but, naturally, some people are more candid and enlightening than others.

I know the Executive Q&A is a popular feature with our readers, mainly because of the response that the executives themselves report after appearing in it. With this issue, you have an opportunity to catch up on any of the Q&A features that you missed.

Here's a link to the digital edition of this week's Executive Q&A issue. And below, we've linked to each Q&A.

Executive Q&A will continue throughout 2016. If you know of someone who would make a worthy subject, I’m all ears. Email me at GMoritz@ABPG.com.

Best wishes,

Gwen Moritz

David Sanders State Sen. David Sanders on the 'Stop-Gap' Private Option, Health Care Reform January 12
Phillip Baldwin Phil Baldwin of Citizens Bank Says Nonprofit Experience Adds Perspective to Banking January 19
Ross Cranford Ross Cranford on the Current 'Revolutionary' Climate in Advertising & Marketing January 26
Peter MacKeith UA Fay Jones School of Architecture Dean Peter MacKeith on the Context of Design February 2
Robin E. Bowen Robin Bowen Doesn't Mind Dealing With a Full Tech February 9
Joe Stanley AB Exec of '09 Joe Stanley On Building One Architecture Firm Out of Two February 16
Scott Van Laningham XNA's Scott Van Laningham on When Air Travel Will Be Enjoyable Again February 23
Bill Spencer Marriott GM Bill Spencer Checks In With 3 Tips on Creating a Top Workplace March 2
Tim Atkinson ASTA's Tim Atkinson Sees Higher Education Meeting Hi-Tech in Arkansas March 9
Myron Jackson Design Group's Myron Jackson on Why Businesses Who Ignore Multiculturalism Should Soon Be a Minority March 16
Fitz Hill Arkansas Baptist's Fitz Hill Sees Education, Urban Revitalization and Investments Intertwined March 23
Mark Myers DIS Director Mark Myers on Arkansas' Top Cybersecurity Threat March 30
Michele Burns HR Director Michele Burns on the Soft Skills Employers Want April 6
Marvin Childers Poultry Federation President Marvin Childers Ready To Play Chicken with Cuba April 13
Matt Crafton Matt Crafton of Crafton Tull on Why Construction Clients Shouldn't 'Coast' Along April 20
Scott Bennett AHTD Director Scott Bennett Says Putting Plans on Hold Could Hurt the Road April 27
Sue Owens Sue Owens on the Educational Impact of Economics Arkansas May 4
Shane Hunt A-State College of Business Dean Shane Hunt on Staying Linked in Supply Chain May 11
Chad Aduddell CHI St. Vincent's Chad Aduddell on Curbing Costs by Staying in Touch with Patients May 18
Don Crabbe First Electric's Don Crabbe on Measuring Energy Conservation by the Meter May 25
John & Emily Gaiser John and Emily McCaskill Gaiser of Pennsylvania Trading Co. on The State of Estate Sales June 1
Bob Edwards Trial Lawyer President Bob Edwards Sees Civil Jury Trials 'Under Attack' June 8
Edmond Waters Arkansas Securities Commissioner Edmond Waters on Preventing Bad Brokers from Doing Business June 15
Chris Olsen Former 40 Under 40 Member Chris Olsen on Staying Evergreen in Business June 22
Jeff Amerine Startup Junkie's Jeff Amerine on Using Entrepreneurship to Innovate Arkansas June 29
Jane Wayland Dean Jane Wayland on Keeping UALR's College of Business in the Mix July 6
Michael Pakko State Economic Forecaster Michael Pakko Says Arkansas Economy Could Be Dampened by These Two Industries July 13
Leslie Davis Harbor's Leslie Davis on How Companies Can Reduce Waste, Regulation July 20
Judd Hollas EquityNet's Judd Hollas Sees Plenty of Room in Crowdfunding July 27
Fred Stone Regions Insurance's Fred Stone on the Most Important Item Your Company Should Protect August 3
Mike Sells Ad Man Mike Sells on Getting Your Target Audience To Buy Your Brand August 10
Don Weaver Don Weaver on Paving Over Potholes in Federal Highway Funding August 17
Bill Jones Sissy's Log Cabin President Bill Jones on Selling Jewelry in the Diamond State August 24
Jeannette Collins Jeannette Balleza Collins on the Agility of Arkansas Startups August 31
Gail Stone Gail Stone on How State Pension Invests in Arkansas September 7
Matthew Dearnley Flake & Kelley's Matthew Dearnley Sees More Preleasing, Money Upfront on NWA Properties September 14
Tim Whitley Tim Whitley On Smart Digital Marketing No Longer Tethered to Smartphones September 21
Liz Adams Investment Adviser Liz Adams on Prioritizing Your Retirement Goals September 28
Jan Buford Jan Burford on Expanding CARTI to Other Areas October 5
Matthew Pelkki Forest Resources Center's Matthew Pelkki on Why Timber Industry Isn't Falling October 12
Johnny Key Education Commissioner Johnny Key on Moving Arkansas Forward in Learning October 19
Pete Yuan IberiaBank's Pete Yuan on Regulation's Fine Line Between Helping and Hindering October 26
Rick Riley Entergy's Rick Riley on Keeping Costs Low, Power Lines High November 2
Amy Dunn Johnson Amy Dunn Johnson on How Pro Bono Work Helps More Than Just Arkansas' Poor November 9
Philip Taldo Philip Taldo Says Private Development Fuels Springdale's Revitalization November 16
Cindi Marsiglio Wal-Mart's Cindi Marsiglio Sees Progress in Made In USA Initiative November 23
Barbara Hambrick Beall Barclay's Barbara Hambrick on What Causes the Most Common Accounting Disputes November 30
Erin Taylor J.B. Hunt VP Erin Taylor on Seeing Safety in Numbers December 7
Gregory Modica Gregory Modica on Why Planning for the Best-Case Scenario Just as Important December 14
Gov. Asa Hutchinson Asa Hutchinson on Economic Qualities That Make Arkansas an 'Easy Sell' December 21

Arkansas Revenue Above Forecast, Below Last Year in December

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LITTLE ROCK - State finance officials say higher than expected corporate and individual income tax collections last month kept Arkansas revenue above forecast, but below the previous year's figures.

The Arkansas Department of Finance and Administration reported Tuesday that net available revenue in December totaled $464.1 million. That's $7.7 million above forecast - but $18.7 million less than December 2014.

The state's net available revenue for the fiscal year that began July 1 is $2.5 billion, $17.8 million below the same point last fiscal year but $66.9 million above forecast.

Individual income tax collections were $2.3 million below December 2014 and $11.3 million above forecast. Corporate tax collections were $4.8 million below December 2014 and $10.3 million above forecast.

Sales tax collections were $2 million below December 2014 and $5.8 million below forecast.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Hutchinson to Ring Opening Bell at Stock Exchange

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LITTLE ROCK - Arkansas Gov. Asa Hutchinson is ringing the opening bell at the New York Stock Exchange next week.

The exchange announced that the Republican governor will ring the bell Monday morning and visit its trading floor. The visit is the latest by the governor to tout the state and try to lure businesses to Arkansas since he was sworn in nearly a year ago. He's also made economic development trips to Europe, Cuba and Asia since taking office.

Hutchinson, a former congressman and federal Homeland Security official, was elected governor in 2014.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Marty Sellars Assumes CEO Role at FNBC Bank (Movers & Shakers)

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Marty Sellars was promoted to CEO and president of FNBC Bank of Ash Flat effective Jan. 1. He succeeded Martin Carpenter, who retired after 30 years as CEO. Sellars has worked for FNBC for 42 years and had been president and chief operations officer since 2003.


Selena Barber has been promoted to senior vice president and senior business development officer at Centennial Bank in Jonesboro, where Harold Copenhaver has been hired as vice president of business development.

Barber has more than 14 years of banking experience and previously served as Centennial’s marketing communications officer. Copenhaver, a state representative from 2012-14, has more than three decades of management, sales and business experience with a specialty in commercial insurance.


Spencer Adams has been promoted to commercial banker by Arvest Bank in Mountain Home. Adams joined Arvest as a teller nine years ago and has since worked as a credit analyst in Yellville and as a lender in Mountain Home and Yellville.


Joe Patrico has joined Citizens Bank of Batesville as a vice president and commercial loan officer in the Hot Springs market. Patrico, a CPA, spent nearly 30 years with the A.G. Edwards brokerage firm in St. Louis and Hot Springs and most recently worked in public accounting in Hot Springs.


See more of this week's Movers & Shakers, and submit your own announcement at ArkansasBusiness.com/Movers.

Centennial Bank Acquires Former John Rogers Properties in Auction

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Did you know that Centennial Bank of Conway recovered four North Little Rock properties formerly owned by alleged fraudster John Rogers and his ex-wife, Angelica?

The bank took ownership in the wake of a Dec. 29 foreclosure auction after bidding:

  • $1.47 million for the complex associated with Rogers’ failed photo archives and sports memorabilia business that includes a 5,580-SF building at 2501 Poplar St. and the 23,610-SF office-warehouse at 2401 Poplar St.
  • $1.25 million for the 12,400-SF manor in the Park Hill neighborhood, which overlooks Lake No. 1.
  • $73,000 for a 1,718-SF office building at 3115 JFK Blvd.

The properties secured $3.5 million of debt linked with four loans from Centennial.

Another OneFinancial Asset Eyed by Johnelle Hunt's BHL

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You might recall that Johnelle Hunt is seeking to collect on a Sept. 18 default judgment of $14.7 million against the parent company of Little Rock’s One Bank & Trust.

Her BHL Financing LLC is pursuing another potential asset of OneFinancial Corp. in addition to the 7,200-SF Parking Building at 4 Country Club Circle in Maumelle.

BHL Financing is making a claim on $1.2 million worth of trust-preferred shares issued by West Tennessee Bancshares Inc., holding company for the $337 million-asset Bank of Bartlett.

The bank recorded a 2015 profit of $317,000 through Sept. 30 after reporting a $178,000 loss during 2014.

The office building and trust-preferred shares were carried on the books of OneFinancial until 2012 when Jerry Pavlas was brought in to replace Layton “Scooter” Stuart, who died the following year.

The default judgment represents debt amassed by Stuart in business dealings with Hunt’s husband, J.B. Hunt, namesake founder of J.B. Hunt Transport Services Inc. of Lowell.

Case Closed

In other One Bank news, the lender recently withdrew its Oct. 23 lawsuit seeking to recover $27,300 allegedly owed on a loan to Debra Hoag. Hoag is the Chicago insurance broker who helped arrange the $20 million life insurance policy for the late Scooter Stuart, former owner and CEO of One Bank.

She also became trustee of the Stuart Family Trust, the beneficiary of that policy. Shortly after accepting that role, Hoag helped arrange a $1.7 million policy loan at the insistence of Scooter Stuart.

He wasn’t legally authorized to seek the loan and even managed to cash the loan check at One Bank although it was in the name of “Stuart Family Trust.”

That $1.7 million is the subject of an ongoing federal lawsuit against Hoag by Stuart’s heirs.


Crittenden County Hopes to Build New $21M Hospital

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If Crittenden County voters approve a tax measure on March 1, an approximately $21 million hospital will be built to replace the bankrupt Crittenden Regional Hospital, which has been closed since September 2014.

Crittenden County Judge Woody Wheeless told Arkansas Business last week that Baptist Memorial Health Care of Memphis has agreed to partner with the county to operate the hospital if voters approve the reallocation of a 1 percent sales tax that was approved in July.

The revenue of the tax was supposed to be used by Ameris Health of Nashville, Tennessee, which had planned to reopen the hospital. But that plan was quietly scrapped in September.

Wheeless said more details about the new hospital will be released after election. If the proposal is approved, he expects ground to be broken in July and the project to be completed in about 18 months. Wheeless said the response so far has been “overwhelmingly positive” for the new hospital.

He said voters will be asked two questions on March 1. The first will be to redirect the tax money that began being collecting on Jan. 1 for the hospital’s maintenance to be used instead for the construction of a new facility. The tax, which will sunset after five years, is expected to generate between $25 million and $30 million during that period. Voters also will be asked to approve the county using the tax revenue to pay for bonds that would be issued to cover construction costs.

Baptist Memorial said in an email statement to Arkansas Business that it expects the voters to support the tax.

“We are hopeful that the citizens of Crittenden County will decide to reallocate the money that has already been approved on two separate occasions,” said Ashley Bowles, a Baptist Memorial spokeswoman. “Since the last two votes were overwhelmingly in favor of tax support for the old hospital, we are optimistic that the citizens will be even more enthusiastic about spending the previously approved dollars on a brand new facility.”

Bowles said that part of Baptist Memorial’s mission is to provide care close to patients’ homes.

“With the opening of a new hospital, residents will have close, equal access to health care regardless of their ability to pay,” she said.

Crittenden County thought it had a deal with Ameris Health to reopen the 140-bed West Memphis hospital.

“We discovered that the tax could not be used for anything except maintenance of the facility and the equipment there,” Ameris CEO Robert Bauer said last week in a voice message to Arkansas Business. “We weren’t going to be able to use the full amount of the tax during the five-year period, so the numbers don’t work. None of our investors would even take a look at it based on the lack of having access to the full amount.”

The county had been scrambling to reopen Crittenden Regional since it abruptly closed in 2014 and then filed for Chapter 7 bankruptcy.

Before the hospital closed, 86 percent of voters had approved in June 2014 a 1 percent sales tax to fund the hospital. The hospital said it would use the money to recruit doctors and renovate the emergency department and inpatient rooms.

But then it abruptly shut its doors because it didn’t have enough money to operate. The Crittenden Hospital Association reported $33.3 million in debts and $27.75 million in assets when it filed for bankruptcy. The bankruptcy remained opened as of last week.

Bank of the Ozarks to Buy WLR Land for New Headquarters

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Bank of the Ozarks has put about 44 acres under contract for a new corporate headquarters campus in west Little Rock.

First-phase construction of a 180,000-SF building is expected to begin late this year or early 2017. Completion is expected for 2018. The architect-engineering team for the development is Polk Stanley Wilcox and White-Daters & Associates.

The company said it doesn't yet know the cost of the new office building.

"The new campus should provide ample acreage for our company's growth, while allowing an efficient and orderly, multi-phase development of facilities as they are needed," said George Gleason, chairman and CEO of the $9.3 billion-asset holding company.

Bank of the Ozarks intends to pay $12.7 million for property on the western end of The Ranch development. It is buying the property from Financial Center Corporation and Ranch Properties, both managed by Ed Willis.

Most of the acreage is at the northwest corner of Cantrell Road and Chenonceau Boulevard. A portion extends east of Chenonceau to Ranch Boulevard along the south side of Ranch Drive.

The planned building represents the fourth headquarters location for the public company since moving to Little Rock in 1995 from Ozark (Franklin County).

Starting with 3,500 SF of leased space downtown, the company moved with 30 staffers to a 40,000-SF home at 12615 Chenal Parkway in June 1998.

The company's current 92,000-SF headquarters at 17901 Chenal Parkway opened in December 2008 with 132 staffers. Today, it houses 214. Occupancy of the building is forecast to max out at 269 next year.

Most of the headquarters staff will relocate to the new building. Corporate loan specialties and mortgage lending operations will remain at 17901 Chenal along with the branch bank.

Heartland Foundation Gives $105K to Nonprofits

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The Heartland Foundation of Little Rock, the charitable outlet of Heartland Bank, contributed $105,000 to 13 nonprofits in 2015.

According to Rick O'Brien, the bank's president and CEO, the bank's board of directors created The Heartland Foundation in 2013 to focus the bank’s charitable contributions on improving the lives of children.

The charitable donations are budgeted in each year and employees may contribute personal funds.

"As parents and long-time supporters of Arkansas Children’s Hospital, board members and staff naturally began our charitable giving to that organization," O’Brien said. "But there are so many other worthy organizations at work here in Arkansas that deserve support. So our mission includes other important child-related nonprofits such as Ronald McDonald House and the Children’s Protection Center."

In 2013 the organization donated $81,250. This year, due to more requests for funds, they increased giving by $7,500 over last year.

O'Brien said some nonprofits come from recommendations by board members and bank employees who are involved with charities, while other nonprofits submit requests for funding.

The amounts, recipients and projects for 2015:

  • Arkansas Children’s Hospital - $50,000
  • Economics Arkansas - $2,500
  • Ronald McDonald House Charities of Arkansas - $5,000
  • Arkansas Rice Depot - $10,000
  • Sunshine House of Fordyce Inc. - $2,500
  • Children’s Protection Center- $10,000
  • Mt. Olive Food Pantry - $2,000
  • Literacy Action of Central Arkansas - $5,000
  • Arkansas Tech University Foundation - $2,500
  • Dallas County Medical Center Foundation - $5,000
  • Beyond Batten Disease Foundation - $5,000
  • Our House - $3,000
  • 13th Judicial CASA North - $2,500

Heartland Bank is chartered in Bryant with a corporate headquarters in Little Rock. Heartland Bank had about $250 million in assets as of Sept. 30.

US Chamber of Commerce Sees Many Risks For 2016

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WASHINGTON — America's most influential business lobby says American businesses are facing numerous risks and few upsides as they enter 2016.

Thomas Donohue is president and CEO of the United States Chamber of Commerce. Donohue says companies face regulatory overreach, the threat of terrorism and war overseas, and cyber theft. Still, he's not predicting a recession.

Donohue says the presidential primaries are also a concern. On the Democratic side, he says, candidates are calling for more spending and taxes. On the Republican side, he says, "sometimes loud voices" are walling off the U.S. from talent, and attacking whole groups of people based on their ethnicity. He calls it "morally wrong and politically stupid."

Donohue's comments came during an annual address at the business group's headquarters.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Bank of the Ozarks Reports Record 4Q Net Income

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Bank of the Ozarks Inc. of Little Rock on Thursday announced record fourth-quarter net income of $51.5 million, up 48 percent from the same quarter last year.

The publicly traded company (Nasdaq: OZRK) said diluted earnings per common share were 57 cents, up 33 percent from the same quarter last year. EPS beat analysts' expectations by a penny.

The company also reported year-end results. It said full-year net income was a record $182.3 million, up 54 percent from $118.6 million for the full year of 2014. Diluted earnings per common share were $2.09, up 38 percent from $1.52 for 2014. 

"We are very pleased with our outstanding fourth quarter results, highlighted by our record quarterly growth of $1.08 billion in non-purchased loans and leases and our record quarterly growth of $939 million in the unfunded balance of our closed loans," CEO George Gleason said in a news release. "This exceptional growth was achieved while adhering to our very conservative credit principles, as evidenced by some of our best asset quality ratios as a public company."

The company said deposits were $7.97 billion at Dec. 31, up 45 percent from 2014. Total assets were $9.88 billion at Dec. 31, 2015, up 46 percent from $6.77 billion from 2014. 

The company said net interest income for the quarter was a record $106.5 million, up 35 percent from $78.7 million last year. Non-interest income was $30.5 million, up 9.5 percent from $27.9 million last year. 

The company's efficiency ratio improved to 37.1 percent in the quarter, down from 44.1 percent in the same quarter last year. 

The company also reported a returns on average asset for the full year of 2.11 percent. Gleason said the company has now achieved returns on average assets in excess of 2 percent for each of the last six years.

Bank of the Ozarks announced on Thursday plans to build a new headquarters in west Little Rock.

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