WASHINGTON — Average long-term U.S. mortgage rates slid this week to their lowest level since February 2015, luring prospective purchasers during the spring home-buying season.

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 This material may not be published, broadcast, rewritten or redistributed.)

Julie Seat has been hired as manager of FNBC’s Ash Flat branch. She previously managed an IberiaBank branch that closed last month.

Molly Carpenter has been promoted to vice president of marketing and public relations at FNBC Bank of Ash Flat. Carpenter, daughter of FNBC Chairman Martin Carpenter, was previously director of marketing and PR. In 2015, she was recognized as one of Arkansas Business’ 20 in Their 20s.

Heath Jackson of Marion has been hired as Crittenden County community bank president by Evolve Bank & Trust of West Memphis. Jackson has 15 years of business development and private banking experience.

Trevor Holbert has been named resident director of the Little Rock office of Merrill Lynch. Holbert is a certified financial planner.

Eric Perry has been hired as a loan officer at Stone Bank in Mountain View. A fifth-generation native of the area, Perry has a degree in animal science and agricultural business from College of the Ozarks near Branson, Missouri. He has previously worked as a farm and ranch manager in Arkansas and Oklahoma.

Ed Bashaw has resigned as dean of the College of Business at Arkansas Tech University in Russellville effective May 31 to become dean of the School of Business at Emporia State University in Kansas. ATU is searching for his replacement.

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

Two months ago, Richard O’Brien was president and CEO of Little Rock’s Heartland Bank when he spoke about a dramatic increase in nonaccrual loans.

“We’ve had a couple commercial borrowers who are under stress,” O’Brien said during the February interview about changes at the $241 million-asset lender. “Maybe 10 percent of our loan portfolio is energy-related. When oil goes from $100 a barrel to $30, it causes problems.”

Among Heartland’s biggest and worst energy-related loans is one connected with a shale play in the New Albany formation of eastern Illinois.

The $10.5 million loan to Next Energy LLC of Denver went into default in early 2014 but didn’t hit Heartland’s balance sheet until last year.

How could Heartland make a loan that exceeded its legal lending limit? It didn’t.

Heartland started with a $5 million piece of the Next Energy loan. However, that grew to $10.5 million in 2013.

That’s when Axys Capital Income Fund LLC of Austin, Texas, assigned its $5.5 million portion of the loan to Heartland.

On the hook for the $10.5 million loan with his personal guarantee is Jack Overstreet, president of Next Energy.

Last month, O’Brien joined a procession of change at Heartland when the company announced he was stepping down as president and CEO of the bank to spend more time with his grandchildren and pursue other business interests.

Also vacated were his positions as bank director and chairman, president and CEO of Heartland’s parent company, Rock Bancshares Inc.

Judy Lawton, chief operating officer, was named president of the bank and the holding company. For now, no one holds the title of CEO at Heartland or Rock Bancshares.

Heartland Bank

As of year-end

* In thousands

A Jackson County bank is moving to increase its presence in the neighboring $815 million-deposit Independence County market.

Merchants & Planters Bank of Newport is seeking regulatory approval to open its third office in Batesville.

The $242 million-asset lender opened its first full-service branch in the market in January 1998.

The Independence County market is home to a half-dozen lenders, including two headquartered in Batesville: First Community Bank and Citizens Bank.

Merchants & Planters, which remained profitable through the 2008 financial meltdown, recorded annual net income of between $1.5 million and $1.6 million during 2010-15.

In addition to Batesville and its two Newport locations, the bank operates six other offices in as many communities: Swifton and Tuckerman (Jackson County); McCrory (Woodruff County), Newark (Independence County) and Des Arc (Prairie County).

Do you keep wondering about that $3.9 million employee theft that First National Bank of Lawrence County discovered in 2015?

So does Whispers.

Things have been very hush-hush outside Walnut Ridge, where quite a few people seem to know — or think they do — the identities of three former employees, all female, who are suspected of the embezzlement.

But we are hearing this: At least one of the suspects is close to waiving indictment and entering a plea deal with the office of the U.S. Attorney for the Eastern District of Arkansas.

Banks like First National of Lawrence County are insured by the federal government through the Federal Deposit Insurance Corp., so stealing from a bank is a federal crime. FNBLC also had private insurance which restored $2.7 million of the loss to the bank’s equity capital.

The sale of two apartment projects combined for more than $11.2 million.

SC Apartments AR LLC bought the 196-unit Shorter College Gardens Apartments at 800 Beech St. in North Little Rock for $7.05 million.

WB Apartments LLC purchased the 100-unit Willow Bend Apartments at 300 Marshall Road in Jacksonville for $4.25 million.

The affiliates of Millennia Housing Development of Cleveland acquired the properties from affiliates of Reliance Capital Partners of West Hollywood, California: College Gardens Apartments LLC and Willow Bend Apartments LLC.

SC Apartments assumed a September 2009 mortgage of $4.87 million held by the Federal National Mortgage Association of Washington, D.C.

The 10.73-acre College Gardens development was bought for $3.2 million in September 2008 from Intrepid Investments Inc., led by Christopher Schultz.

WB Apartments assumed a December 2012 mortgage of $2.7 million held by Fannie Mae.

The 10.41-acre Willow Bend development was purchased for $2.6 million in August 2008 from Marshall Management Inc., led by Donald Marshall Jr.

Convenient Location

A site for a convenience store project in North Little Rock tipped the scales at $1.76 million.

Murphy USA Real Estate LKE 13 Ltd., an affiliate of El Dorado’s Murphy USA Inc., acquired the 2.8-acre Budgetel Inns & Suites location at 111 Pershing Blvd. from Tariq Inc. of Farmers Branch, Texas.

Tariq bought the property in June 1999 as part of a $2.29 million deal with Nahop Partners Ltd., led by G.D. Gunn.

Convenient Sale

A 2,600-SF convenience store in south Pulaski County changed hands in a $627,000 sale.

Sultana’s Property LLC, led by Kammarsultana Pabanl, purchased the 224 E. Bingham Road project. The seller is Sultan Inc., led by Chodry Cheema.

The deal is financed with a $354,575 loan from Centennial Bank of Conway. The 1.64-acre development previously helped secure an April 2014 mortgage of $1.14 million held by the bank.

Sultan acquired the property two years ago as part of a $1.4 million deal with KSA Investment Group Inc., led by Mohammad Lone.

Hub Acquisition

A 17,416-SF commercial project in North Little Rock shifted ownership in a deal valued at $575,773.

The Arkansas Regional Innovation Hub Inc., led by John Gaudin, bought the 201 E. Broadway property. The seller is The Mill LLC, led by Jack Grundfest and Gaudin.

The deal is backed with a seven-year loan of $775,000 from IberiaBank of Lafayette, Louisiana.

The Mill purchased the 0.64-acre development in March 2008 as part of a $900,000 deal with from Mountaire Corp., led by Ron Cameron.

Church Transaction

Sherwood congregations were on either side of a $520,000 church transaction.

New Beginnings Church Ministries Inc. acquired Victory Missionary Baptist Church at 515 Sherwood Ave.

The deal is funded with a five-year loan of $395,000 from First Arkansas Bank & Trust of Jacksonville.

The 1.31-acre property was assembled in four transactions with Metropolitan Trust Co. totaling more than $11,000 in July 1957, February 1968 and April 1975.

Branch Buy

A North Little Rock bank branch rang up a $430,000 sale.

Tropical Real Estate LLC, led by Glen Johnson, purchased the 2610 Main St. project from Arvest Bank of Fayetteville. The deal is financed with a one-year loan of $696,000 from Simmons First National Bank of Pine Bluff.

The 0.62-acre location was acquired in June 2003 as part of a $205,000 deal with Crossroads Shopping Center LLC, led by Warren Stephenson.

Solluna Purchase

A 3,150-SF commercial building in west Little Rock drew a $360,000 transaction.

Solluna Holdings LLC, led by William Lulky, bought the 8601 W. Markham St. project from the Paul Charles & Charlene D. Prousnitzer Family Revocable Trust.

The deal is backed with a five-year loan of $350,000 from Southern Bank of Poplar Bluff, Missouri.

The 0.49-acre property was purchased for $25,000 in March 1961 from Henry Brothers Suppliers & Builders Inc.

Transferred Title

A nearly 1-acre commercial site in west Little Rock shifted ownership in a transfer valued at $350,000.

Central City Properties LLC, led by German Jimenez, acquired the land near the northeast corner of Stagecoach and Otter Creek roads. The seller is 2610 Acres LLC, led by Rick Ferguson.

The deal is funded with a one-year loan of $350,000 from Bank of Little Rock.

The property was bought in May 2003 as part of a $775,000 deal with Otter Creek Development Co., led by Robert McGinnis and Byron Eiseman Jr.

Mini-Property

Land for expansion of a Jacksonville mini-storage project sold for $155,000.

Mini Storage Service Co. LLC, led by Terry Bean, purchased the 4.4-acre property at 1016 School Drive from Frederic Vick.

The deal is financed with a $175,000 loan from First Security Bank of Searcy.

Vick acquired the property for $112,000 in August 2009 from the estate of Inadel Vick Tigirt.

Club House I

A 6,945-SF home near the Country Club of Little Rock weighed in at $1.99 million.

Walter Hixson bought the house from CGAH LLC, led by Nancy Stephens.

CGAH purchased the property in May 2004 as part of a $1.8 million deal with Linda Landers.

Club House II

A 2,873-SF home near the Country Club of Little Rock is under new ownership after a $595,000 sale.

Ned and Laura Rawlings acquired the house from Eileen and Steven Denne. The deal is backed with a 30-year loan of $250,000 from IberiaBank Mortgage Co. of Little Rock.

The residence previously was tied to a September 2011 mortgage of $414,000 held by Little Rock’s Bank of the Ozarks.

The Dennes bought the property for $535,000 in July 2009 from Mark and Katherine Ramm.

Argenta Flats

Construction of an 82-unit apartment project in downtown North Little Rock is backed with a $7.1 million funding agreement.

Argenta Flats LLC, led by Nathan and Brent Salter and Jack Grundfest, obtained the five-year loan from IberiaBank.

The land at 600-800 Maple St. was assembled in two December deals totaling $1 million.

The sellers were City Grove LLC, led by John Gaudin, $696,000; and the city of North Little Rock, $319,000.

Garver Financing

The owner of a North Little Rock office building landed a $4.4 million financial package.

Taipanic Investment Group LLC, led by Herbert Parker, received the seven-year loan from JPMorgan Chase Bank of New York.

The 6.38-acre Garver engineering development at 4701 Northshore Drive previously was linked with a June 2008 mortgage of $7.6 million held by IberiaBank.

The property was purchased for $1.17 million in July 2007 from Pfeifer Family Ltd. No. 1, led by Gene Pfeifer.

Spring Funding

A 48,000-SF office building in downtown Little Rock is securing a $2 million mortgage.

No. 1 Spring Street Building Ltd., led by Greg Cockmon, got the two-year loan from IberiaBank.

The 0.4-acre development at 101 Spring St. previously was linked with a January 2012 mortgage of $3 million held by Arvest Bank.

The location was acquired for $149,000 in January 1974 from the Housing Authority of Little Rock.

Another Arkansas lender is opting to become a state-regulated institution.

Bear State Bank of Little Rock, which now has a national bank charter despite its name, intends to convert to a state charter. Based on the current size of the $1.4 billion-asset lender, the change will produce an estimated $250,000 as-sessment this year for the Arkansas State Bank Department.

“They’re a little bit closer to home and understand what we deal with every day as a community bank,” said Mark McFatridge, president and CEO of the bank and its public parent company, Bear State Financial Inc.

The move will pare the number of Arkansas financial institutions overseen by the Office of the Comptroller of the Currency to 19. On April 1, Simmons First National Bank converted from a national banking association to a state-chartered bank on the way to rebranding as Simmons Bank. First National Bank of McGehee converted to First NaturalState Bank on Jan. 21.

So how do you get a 10-year lease on a big chunk of land and pay just $10 a year in rent?

If the $100 deal between Energy Security Partners LLC and the Economic Development Corp. of Jefferson County is any indication, you have to make some big promises.

The development group leased nearly 1,100 acres in northern Jefferson County to ESP, which plans to build a massive plant for turning natural gas into liquid fuel, including diesel. The project, touted as the largest economic development in state history, has a first-phase price tag of $3.7 billion.

The lease deal, executed March 30, was signed by Roger D. Williams, CEO of ESP, and George A. Makris, the chairman of the development corporation and the chairman and CEO of Simmons First National Corp. of Pine Bluff.

The lease states that “Base Rent shall be equal to $10 annually” for the 10-year term and $10,000 a year afterward. The development group bought the land, also on March 30, with $2.8 million from an incentive package it had approved in February.

What’s the catch for ESP? Well, the lease stipulates that the project must create at least 225 primary jobs “with an average hourly wage of not less than $40 per hour plus benefits.” ESP also promises to “expend at least $2,800,000,000 in capital investments in constructing, developing and improving” the facility. In case you got lost in all those zeroes, that’s $2.8 billion.

Makris, by the way, is not just a signer of the lease, but also an investor in the project. For that reason, he did not vote in the economic development group’s consideration of the incentive package. “I have a small investment in a common fund which has invested in the project,” he wrote in an email. “It is, in my opinion, a conflict for purposes of voting on any benefit for the project.”

Last week, the Federal Reserve System’s Division of Banking Supervision & Regulation announced that it would develop new training to help bank examiners spot an issue that was a documented factor in at least four bank failures between 2009 and 2014.

The Federal Reserve’s Office of Inspector General, in lawyerly language, calls the problem a "dominant management official."

You and I might call him — and in every case cited by the Fed, you know, it was a man — a Boss Hogg.

The announcement that examiners will be trained to look for signs of a bank executive who dominates subordinates or assumes too many roles came in the OIG’s final report on the failure of a Maryland bank in 2014.

NBRS Financial, an hour from Baltimore in a little town with the lovely name of Rising Sun, was never a very big bank — assets of $155 million when it was shut down by state bank regulators, although it had been as big as $275 million a few years before. The loss to the Federal Deposit Insurance Corp. caused by the failure of NBRS was relatively small — just $24.3 million, which is less than half the threshold that normally triggers an in-depth OIG report.

But "unusual circumstances" at NBRS prompted the Inspector General to take a deep dive into all the causes of the bank failure. Those included some of the usual things one sees in a bank failure — a loan portfolio that was insufficiently diverse, poor credit-risk management, struggles with identifying problem loans before examiners pointed them out. Those weren’t the unusual circumstances that the OIG singled out.

Instead, although the report doesn’t call him by name, the real problem was Jack Goldstein, president, CEO and chairman of the board until the board finally forced him and one board member out in 2012.

That’s when the directors learned that Goldstein and the director "allegedly borrowed more than $3 million in the names of various relatives without disclosing their apparent interests in the loan proceeds."

But by then, examiners had for several fruitless years been telling the directors about a lot of other red flags: loans to Goldstein that violated insider lending limits; "questionable entertainment-related credit card transactions"; frequent turnover at the CFO position, resulting in Goldstein being "the only person able to provide answers to questions regarding numerous functions."

Am I the only one who reads this and thinks of the late Scooter Stuart, who was owner, president, CEO and chairman of One Bank & Trust until federal regulators forced the board to fire him? And maybe some others right here in Arkansas?

The NBRS board’s domination by Goldstein extended even to rubber-stamping a strategic plan that clearly wasn’t working. Specifically, the bank ramped up its commercial real estate lending in anticipation of a flood of new jobs as a result of military base reorganization and didn’t let up even when it became obvious that the projections weren’t coming true. The bank was losing millions year after year after year.

By the time the board wised up and cut Goldstein loose, the bank was beyond salvage. (One Bank & Trust has survived, thanks in part to the life insurance that Scooter Stuart kept in force.)

"We concluded that NBRS Financial’s President was a dominant management official who was heavily involved in the bank’s daily operations and surrounded himself with inexperienced senior executive staff," the OIG reported. "These circumstances, along with the bank’s internal control weaknesses, segregation of duties issues, and inadequate credit risk management practices, created an opportunity for the President to allegedly engage in insider abuse."

As far as I can tell, Goldstein has not been charged with any crime. But the dominant management official at three other failed banks cited by the OIG were — including legendary Virginia banker Edward J. Woodard Jr., who is 73 and serving a 23-year sentence in federal prison for bank fraud and related charges during his tenure as president of The Bank of the Commonwealth. He may get out before he’s 90.

Part of Woodard’s sad legacy will be helping bank regulators recognize a risk factor that had apparently been underappreciated. It might be that bank directors — or directors of other businesses, for that matter — can spot Boss Hogg behavior on their own before too much damage is done.

Gwen Moritz is editor of Arkansas Business. Email her at GMoritz@ABPG.com.

The Internal Revenue Service last week released its 2015 IRS Data Book, which includes information about returns filed, taxes collected and other tax-related subjects. It covers the agency’s fiscal year, Oct. 1, 2014, to Sept. 30, 2015.

“During fiscal year 2015, the IRS collected more than $3.3 trillion, processed more than 243 million tax returns and other forms, and issued more than $403 billion in tax refunds,” the agency said in a news release.

The IRS’ website, IRS.gov, saw more than 493 million visits in fiscal 2015, and one of its most popular online tools, Where’s My Refund, handled 234 million inquiries, which set a record and was a 24 percent increase over the previous year.

One of the seminal myths in Greek mythology is the story of Apollo and his mortal son, Phaeton. I will not recount the myth here, but let’s just say that Phaeton gets promoted into a job he is not ready to do, and it doesn’t work well for anyone concerned.

It’s not something anyone wants to think about, but suppose tomorrow one of your key leaders has a serious health issue and is going to be out — permanently. If you prefer, imagine that this employee’s lottery habit finally paid off and he “called in rich.” Or maybe it’s the CEO who is permanently on the bench. Do you and your team understand exactly what would happen the next day? The next week? The next year?

I’m always surprised when I visit with a company that doesn’t have a well-defined succession plan. For more companies than I would have thought, succession planning, if it’s done at all, is a spreadsheet with the names of candidates for an opening in each of the key positions. When I play devil’s advocate and ask, “How many of those people would be ready to take that seat, and have their own replacements ready, if the worst happened tomorrow?” most execs have to admit that they do not know.

A succession plan means not only knowing who could move into an open slot, but what development gaps the candidate has for readiness and what the plans are for filling those gaps. Training, development assignments, coaching, stretch project leadership, board exposure, public speaking and business education are all possibilities in a properly designed development plan. But nothing prepares a manager or executive for the next level like having to engage as if she were in the seat.

Finding ways to expose senior-level managers to the actual realities of working a level up is key to effective succession planning. One of my Georgetown coaching faculty colleagues, Scott Eblin, published “The Next Level: What Insiders Know About Executive Success” as a guide for exactly that kind of exposure.

Initially, his research was in large companies, asking SVPs and EVPs what skills they wanted to see newly promoted VPs develop. He defined a framework for what a new VP needs to stop, to start and to approach differently. Ironically, the book is used as a guide for creating development plans for directors as much as it is for newly promoted VPs.

I have written here about my Vistage CEO peer groups; however, I also run one that is a blend of key executives (largely CXOs and SVPs) and smaller business owners. When we get into problem-solving, we can really see a difference in the approach between those who are accountable for an entire business and the approach of those who have deep accountability for a specific area of the business (finance, legal, engineering, ops, etc.)

Those with general management experience, such as a local P/L or accountability for a division, have a very different approach to defining challenges and engineering solutions — and each month we can see the CXOs get a broader view of their own role as an officer, in addition to oversight of a technical or departmental function.

So no matter what your level of accountability, could you start with a blank sheet of paper and list the candidates who could step into your job if you were gone tomorrow? Do you know the gaps in skill, judgment, knowledge and experience they would need to be ready on that day? What about their direct reports? How about your own next step? Do you know what you need to be ready for the next level of accountability?

If not, you might make this a critical project for the next 90 days at your organization, as part of your risk-mitigation plan. And it needs to be said that this may be even more important if you are a family-owned business. If you have a son or daughter who is likely to be a buyer or would be the likely candidate to step in should you be out of the picture, his or her development plan is critical. Many family business owners assume that because the kids grew up in the business, they are ready to take the reins. You may not feel ready to hand them over, but you cannot begin to develop the next generation of leaders too soon.

I. Barry Goldberg is a credentialed executive coach and chairs Vistage Private Advisory Boards in Little Rock. You can reach him at Barry.Goldberg@EntelechyPartners.com.

Northwest Arkansas showed a significant increase in building permits issued and existing homes sold in the second half of 2015 compared with the same period last year, according to the Skyline Report from Arvest Bank.

The area also recorded its lowest level of residential lot supply since 2007, with only 48.3 months' supply remaining in active subdivisions in northwest Arkansas.

The Arvest Skyline Report is a biannual analysis of the latest commercial, single-family residential and multifamily residential property markets in Benton and Washington counties.

"Steady, incremental growth continues to be the story in northwest Arkansas' residential real estate," said Kathy Deck, lead researcher for the Skyline Report at the Center for Business and Economic Research at the Sam M. Walton College of Business at the University of Arkansas. "As demand has grown along with an uptick in the economy, developers and contractors are expanding their supply of housing to meet the needs of families moving into and within the two county area."

The average sold price of Benton County homes during the second half of 2015 was $206,575, up 3.1 percent from the average sold price during the first half of 2015. In Washington County, the average price of existing homes sold was $189,093, down 2.9 percent from the average sold price in the first half of 2015.

In total, 4,257 existing homes were sold in Benton and Washington counties during the last six months of 2015, an increase of 15.3 percent compared to the same time period of 2014.

"As the number of existing houses sold continues to climb along with the number of building permits, it is apparent that people are in the market for new homes," said Jeff Resler, Arvest Mortgage Loan Manager for Benton County.

Using the absorption rate from the past 12 months implies that there is a 48.3-month supply of remaining lots in active subdivisions in northwest Arkansas, the lowest level since 2007. But an additional 5,113 residential lots have received either preliminary or final approval in the two counties. Adding those proposed lots extends the supply to 76 months. 

Bank of the Ozarks Inc. of Little Rock on Monday reported first-quarter net income of $51.7 million, a new record, and up nearly 30 percent from the same quarter last year.

The publicly traded company (Nasdaq: OZRK) also reported diluted earnings per share was 57 cents, up 21 percent from same quarter last year.

In a news release, CEO George Gleason said the company's "potent combination of strong growth, pristine asset quality, superb net interest margin and great efficiency" helped it achieve record results.

"We are very pleased with our outstanding first quarter results, highlighted by our $1.06 billion quarterly growth in non-purchased loans and leases and our [$580 million] quarterly growth in the unfunded balance of closed loans," he said. "This excellent 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, including an annualized net charge-off ratio of just 0.05 percent."

Total loans and leases, including purchased loans, were $9.27 billion as of March 31, up nearly 46 percent from $6.36 billion at March 31, 2015. Deposits were $9.63 billion, up 43 percent. Total assets were $11.43 billion, up 38 percent.

Quarterly net interest income was a record $112.5 million, up about 32 percent from the first quarter of 2015. Non-interest income was $19.9 million, down 32 percent. 

The company's first-quarter efficiency ratio improved to 35.5 percent compared to 42.8 percent in the first quarter of 2015. 

During the quarter, Bank of the Ozarks announced a record-setting, $800 million all-stock deal to purchase Community & Southern Bank of Atlanta, which has $4.4 billion in assets, and a $402.5 million all-stock deal to buy C1 Financial Inc. of St. Petersburg, Florida, and its wholly owned bank subsidiary, C1 Bank, which has $1.7 billion in assets.

Both deals, and other recent acquisitions, were enough to push the company beyond the $10 billion-asset threshold, putting the company in at a new level of regulatory oversight under the Dodd-Frank Wall Street Reform & Consumer Protection Act of 2010.

Citizens Bank of Batesville announced Tuesday the creation of a $10 million redevelopment fund to be used for low-interest loans to redevelop the historic downtown of its hometown.

The locally owned bank will also make up to $100,000 worth of cash grants for small exterior improvements to downtown properties.

“Historic Downtown Batesville will be redeveloped," Phil Baldwin, president and CEO of the locally owned bank, said in a press release.

The redevelopment fund will support Impact Independence, a 10-year strategic plan for Independence County unveiled last summer, when Baldwin was chairman of the Batesville Area Chamber of Commerce.

Lyon College and the University of Arkansas Community College of Batesville participated in the development of the strategic plan.

The announcement on Tuesday was part of an open house and progress report hosted by the Historic Melba Theater (see video below). 

"I am excited that Historic Downtown Batesville will now have the ability to combine the vibrancy of a college community and the ambiance of a small southern town," Baldwin said.

"My hope is for Historic Downtown Batesville to come alive again and provide family friendly entertainment with diverse and eclectic shopping, dining, arts, cinema, music and pubs; to become residential again, with loft apartments above and shops below; to be a place for all generations to gather, walk, bike or talk – a people gathering place for all of Independence County," he said.

Citizens Bank had assets of $722.4 million at the end of 2015, with net income for the year of $4.36 million.

Six of its 17 branch offices are in Independence County.

The Little Rock Technology Park Authority Board on Wednesday approved rental rates ranging from $200 to $1,100 for furnished slots at 48,264-SF of office space, which is under construction at 415 and 417 Main St.

A co-working dedicated desk, non-reserved desk and day pass will cost $200, $125 and $25 per day, respectively.

Office suites and desks will be $475-$625 for a semi-private space, $275-$1,100 for a private space, $1,000 for a team station and $300 for work stations.

Executive Director Brent Birch presented the rates and floor plans for phase one of the Tech Park project to the Little Rock Technology Park Board at its regular meeting.

Amenities for tenants will include ultra high-speed broadband internet, paid utilities, conference rooms, a coffee bar, maintenance and janitorial services, secure 24/7 access, a copy print center, lockable storage, a business mailing address, bike racks, locker rooms and showers.

Birch said he is working with Charles Dilks and other facility managers nationwide to develop lease agreements for tenants. He said the park would likely offer 12-month terms, with the exception of month-to-month leases for those renting co-working spaces and longer terms for half- and full-floor tenants. Parking will be leased separately from building spaces.

Birch said the park is close to announcing tenants, and said to expect a variety of companies.

“You can't think pigeon hole,” he said. “These companies come in all shapes and sizes ... It's definitely set up to be fit for a one-man shop, or five-man or 10-man shop. You could have someone take up a whole floor.”

Birch said the Tech Park would offer startup grants to applicants approved by him and a yet-to-be-named board member. The program would provide below-market lease rates for a maximum of two years. The rent would gradually increase over the two years until the tenant is charged the market rate.

Renovation

The board also approved a total cost of $6.8 million for the renovation of 415 and 417 Main St., demolition of 114 E. Capitol Ave. and asbestos abatement for 114 E. Capitol Ave. and 415 Main St.

The project completion date is Jan. 2.

Birch told Arkansas Business that the Little Rock Tech Park planned on spending $6 million, while contractor East Harding Construction expected the project to cost $6.3 million. But he said contingency funds would offset the difference.

Birch also said six of the 23 contracts — or 26 percent — that East Harding issued to subcontractors in phase 1 construction are going to minority- and women-owned businesses, and that he expected more opportunities for those businesses in future projects.

Value engineering and deductive alternatives were used to bring the costs down by $160,007 and $88,849, respectively, Birch told the board.

The original project bid came down from $6.76 million to $6.51 million, and then the cost of the demolition and abatements were added.

Planned rebidding of millwork and fire door packages could further reduce the total price, Birch said.

Abatement costs are $170,000 for 114 E. Capitol and $40,000 for the roof of 415 Main St.

Birch said the plan is to complete one building this month and another in June. He’s working with the Pulaski County Brownfields Program to get assistance with the Main Street property’s abatement. He said that couldn’t be done for the other property because work had already started.

Demolition of 114 E. Capitol is expected to wrap up in May. General demolition at the two Main Street properties is set to be complete June 3 for 417 and July 5 for 415.

The board also approved a five-year, fixed-term contract with Best Park for the parking lot at Fourth and Main streets. It begins July 1, when the lease with the state ends.

Annual projected revenue of the park, based on an occupancy rate of 100 percent, is $126,633, Birch reported.

Comings and Goings

Birch announced a new Tech Park tenant, Keith Fogg of MobX, and the loss of two members. He also said he is working with Venture Center to host the FinTech Accelerator at the park’s 107 Main St. office.

Spencer Jones, who has two medical device companies and was listed among Arkansas Business’ 2015 20 in their 20s class, has temporarily moved in with HubX-Life Sciences to work on a project and then plans to set up shop in Fayetteville, Birch said. But Jones wants to have a second office in Little Rock later and is interested in future tech park space, Birch told the board.

Accelerate Arkansas also moved out over issues with their grant funding, but may return to another Tech Park space once those are cleared up, he said.

The board agreed to purchase a Zurich liability insurance policy while 415 and 417 Main St. are under construction. The annual premium is $15,165, and the deductible is $5,000.

The board also agreed to purchase a builder’s risk insurance policy from Travelers with an annual premium of $12,408 and a $5,000 deductible.

The board voted to initiate a $15,000 contract with Middleton Heat & Air for the semi-annual maintenance of 421 Main St.

The board briefly discussed a memorandum of intent it plans to have with the city, but didn’t vote on it, although one member said she expected little opposition. Birch said he was scheduling a presentation to the city’s board of directors to update them on the project’s progress and talk about the memorandum.

He also said he'd be submitting four disbursement requests to Centennial Bank, which provided a $9.6 million loan for the project, to pay vendors by reimbursing the board's operating account. But Birch said he didn't have spreadsheets with final amounts prepared and a vote wasn't needed yet. 

The board also approved the Tech Park’s logo, designed by Cranford Co. of Little Rock.

Julie Bridgforth has joined Relyance Bank of Pine Bluff as vice president of corporate sales and community relations. Bridgforth was previously the director of physician recruitment for Jefferson Regional Medical Center.

Shane Davis has been hired by FNBC Bank of Ash Flat as senior vice president and commercial lender in the Mountain Home market.

Other new hires in Mountain Home are Debbie Howard, vice president of mortgage and consumer lender; Cheryl Chappell, consumer lender and mortgage processor; and Christine Lewis, commercial loan processor.

Davis, a Little Rock native, has more than 20 years of banking experience in the Mountain Home community, most recently as SVP and commercial lender for Centennial Bank.

Howard has more than 35 years of banking experience, most recently as vice president, commercial lender and mortgage originator for Centennial.

Chappell, a native of Wynne, has more than 30 years of banking experience, most recently serving as an assistant to senior-level credit officers.

Lewis, a native of Mountain Home, has 15 years of banking experience as a commercial loan assistant.

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

A west Little Rock restaurant weighed in at $2.2 million.

12900 Chenal Parkway LLC of Santa Monica, California, bought the Zoe’s Kitchen at its namesake address from Zoe’s Arkansas LLC of Plano, Texas.

The deal is financed with a five-year loan of $1.36 million from Arvest Bank of Fayetteville.

Zoe’s acquired the 0.98-acre site for $780,000 in June 2015 from Target Corp. of Minneapolis.

Med Project

A 7,595-SF medical office building in Sherwood tipped the scales at $1.59 million.

1525 Country Club LLC, led by Jeff Johnson, purchased its namesake property, the home of Arkansas Specialty Orthopaedics.

The sellers are ASCC North LLC, 55 percent, and Once LLC, 20 percent, both led by Mark Bentley; and Burlingame Investments Ltd., led by Lowry Barnes, 25 percent.

The deal is funded with a 20-year loan of $1.35 million from BancorpSouth Bank of Tupelo, Mississippi.

The 1.72-acre development previously was tied to a March 2010 mortgage of $880,000 held by Delta Trust & Bank of Little Rock.

The project was bought for $1.25 million in December 2005 from Arkansas Specialty Ancillary LLC, led by Alicia Cooper.

Pizza Building

A U.S. Pizza project in Maumelle is in motion after a $676,921 land deal.

J&R Properties LLC, led by Judy Waller and Randall Breece, acquired the 1.04-acre site on the west side of Maumelle Boulevard between Starbucks and Maumelle Wine & Sprits.

The sellers are R&L Properties LLC, led by Tommy Lasiter, 60 percent, $406,153; Bat Rep LLC, led by Bruce Thalheimer; and WMBS LLC, led by Warren Stephenson, 20 percent each for $135,384. Construction is backed with a five-year loan of $1.56 million from First Security Bank of Searcy.

The property was purchased in June 2004 as part of a $3.4 million loan from Capitol Development of Arkansas Inc., led by Michael Todd.

Commercial Land

A 2.53-acre commercial site in west Little Rock rang up a $500,000 sale.

Innovative Real Estate LLC, led by Majid Saleem, bought the land in front of the Arkansas Realtors Building at 11224 Executive Center Drive. The seller is the Arkansas Realtors Association, led by Mikki Bass.

The site was acquired in October 2006 as part of an $895,000 deal with the estate of Billy Bridewell.

Tag Transaction

A 23-acre parcel east of the Landmark community is under new ownership after a $400,000 deal.

Tag Properties LLC, led by Barney and Kelley Adams, purchased the 10425-10623 Ironton Road property. The seller is Wilkins Construction Inc., led by Rex Wilkins.

The deal is financed with a three-year loan of $1 million from Peoples Bank of Sheridan.

The property previously was linked with two October 2013 mortgages totaling $683,000 held by First Arkansas Bank & Trust of Jacksonville.

The acreage was assembled in two deals totaling $48,000. The sellers were Reynolds Metals Co. of Richmond, Virginia, $20,000 in December 1987; and Mary Collins Martin, $28,000 in November 1992.

Parking Purchase

A 7,000-SF parking lot in downtown Little Rock sold for $300,000.

6th & Center LLC, led by Jordan Haas, acquired the property on the east side of Center Street between Capitol Avenue and Sixth Street. The seller is Broadway Park LLC, led by Brett Pitts.

Broadway Park carried the entire sale in the form of a 20-year mortgage.

The property was purchased in November 2012 as part of a $500,000 deal with One Bank & Trust of Little Rock.

School Sale

A 1.3-acre piece of the former Baring Cross Elementary school grounds in North Little Rock drew a $268,750 transaction.

Dorien’s CDC & Preschool Corp., led by Nattaisha Albury, bought the 901 Parker St. project. The seller is Terraforma LLC, led by David Bruning and Doug Meyer.

The deal is funded with a 20-year loan of $215,000 from BancorpSouth Bank.

Terraforma acquired the property in September 2015 as part of a $250,000 deal with the North Little Rock School District.

Warehouse Buy

A 4,745-SF warehouse in downtown Little Rock changed hands in a $170,000 sale.

DDG Holdings LLC, led by Russell Carter and Gabriel Holmstrom, purchased the 1020 E. Sixth St. project from Joseph Beck III and his wife, Wanda.

The deal is backed with a three-year loan of $136,000 from Arvest Bank.

The Beck family has owned the 0.23-acre property since April 1948 after buying it from Ella Wooten Brown for an undisclosed sum.

Hillcrest House

A 3,971-SF home in Little Rock’s Hillcrest neighborhood rang up a $575,000 sale.

Ken Nicholas and Sara Wilson acquired the house from Angelea and William Drennan.

The deal is financed with 30-year loans of $417,000 and $100,500 from Bank of Little Rock Mortgage Corp.

The residence previously was tied to a December 2012 mortgage of $417,000 held by IberiaBank Mortgage Co. of Little Rock.

The property was purchased for $570,000 more than three years ago from Nicholas and Susan Brown.

Dairy Farm Abode

A 5,384-SF home in west Little Rock’s Dairy Farm neighborhood is under new ownership after a $545,000 transaction.

Maurico and Stacey Aguilar bought the house from Timothy and Anne Martin.

The deal is funded with a one-year loan of $545,000 from One Bank & Trust. The residence previously was linked with a May 2012 mortgage of $562,468 held by USAA Federal Savings Bank of San Antonio.

The Martins acquired the property for $630,000 in January 2006 from Joe and Janet Canalichio.

Office Refinance I

A 24-story office building in downtown Little Rock was used to secure a $9.5 million financial package.

200 West Capitol LLC of Los Angeles obtained the five-year loan from First Security Bank.

The 1.3-acre Bank of America Plaza development at 200 W. Capitol Ave. previously was tied to a November 2011 mortgage of $7.1 million held by Telesis Community Credit Union of Chatsworth, California.

The property was purchased for $10.18 million in May 2006 from SVP West Capital LLC of New York.

Dream Big Mortgage

A 29.35-acre commercial tract in North Little Rock was used to back a $2.9 million funding agreement.

Dream Big Investments LLC, led by Marsha Martin, received the five-year loan from Arkansas Federal Credit Union of Jacksonville.

The land, which wraps around the McDonald’s at the northwest corner of Maumelle Boulevard and Counts Massie Road, previously was linked with a March 2008 mortgage of $3.2 million held by Capital Bank of Little Rock.

The property was bought for $3 million in April 2006 from Metropolitan Realty & Development LLC, led by Terry Paff.

Office Refinance II

The owner of an 18,800-SF office building in Little Rock’s Riverdale area picked up a $2.23 million funding agreement.

Swan Harbor LLC, led by Cori Catlett, Alan Perkins and Scott Trotter, got the five-year loan from Simmons First National Bank of Pine Bluff.

The 1.64-acre development at 101 Morgan Keegan Drive previously was tied to a March 2009 mortgage of $3 million held by Pulaski Bank & Trust of Little Rock.

Swan Harbor LLC acquired the land in March 2009 as part of a $1.5 million deal with Winrock International Institute for Agricultural Development.

Last week we brought you information on taxes collected by the Internal Revenue Service (see IRS Collected Over $3.3 Trillion in FY 2015); this week, we focus on refunds.

The IRS issued more than 119 million refunds amounting to almost $403.3 billion in fiscal year 2015 after collecting more than $3.3 trillion in gross taxes.

The information comes from the recently released 2015 IRS Data Book, covering the agency’s fiscal year, Oct. 1, 2014, to Sept. 30, 2015.

Jefferson County taxpayers have picked up the tab for nearly $3 million worth of land, and Energy Security Partners has signed a lease to use it for building a fuel-making plant near Pine Bluff, but the plant site is still not quite a done deal, according to Roger Williams, ESP’s co-founder and chief executive.

The Economic Development Corp. of Jefferson County, known in Pine Bluff as the tax board, cleared the way for the project, touted as the largest economic development project in state history with a first-phase price tag of up to $3.7 billion, by purchasing nearly 1,100 acres. The purchase was funded with $2.8 million from a $3.9 million tax incentive package the tax board approved in February.

But Williams, while noting that Jefferson County is well ahead of other contenders, said in an interview on Wednesday that other possible sites for the facility, which would convert natural gas to diesel and other liquid fuels, have not been entirely ruled out.

Williams signed an agreement on March 30 for ESP to lease the land from the tax board for $10 a year for 10 years, and tax board Chairman George A. Makris and Pine Bluff Mayor Debe Hollingsworth, as well as Economic Development Alliance President Lou Ann Nisbett, said they considered the lease to be ESP’s firm commitment to the area.

“The Gas to Liquid processing plant is official,” Hollingsworth said in an email on April 4. Makris, who is also chairman and CEO of Simmons First National Corp. of Pine Bluff, said this in an April 1 email: “I do believe the signing of the lease agreement confirms ESP’s commitment to establish their plant in Jefferson County.”

But on Wednesday, Williams took a half-step back. “We need to make a final decision as to whether this is to be our project site,” he said. “The best way I can describe it is that the economic development incentive package that Jefferson County has provided to us has allowed us to move forward very seriously in making Jefferson County the home for this project.”

Cameron Smith, originally from California, founded the executive recruitment firm Cameron Smith & Associates in 1992. The firm has gone on to become the top provider of executive talent to the almost 1,400 vendors doing business with Wal-Mart Stores Inc. CSA now has 22 employees and has placed about 3,000 employees in northwest Arkansas. Smith won the Arkansas Business Executive of the Year Award in 2015.

Cameron Smith is a former professional fast-pitch softball pitcher.

When changing jobs, are most people motivated by money or something else?

Money attracts people initially, but candidates consider other factors when it comes to the final decision. Growth potential, stability, work culture, length of commute, flexibility, benefits and work/life balance are all motivating factors. Cultural fit and a clear vision for career path progression seem to be at the top of every candidate’s list.

When an employee gets an offer from another company and her current company matches that or improves on it, causing the employee to stay, how does that affect her relationship with her boss going forward?

Accepting a counteroffer creates high expectations on both sides. The employer expects the worker to live up to increased pay but distrusts her for looking in the first place. The worker expects the employer to make good on promises made to win her back but distrusts an employer who only valued her when she tried to leave. Usually when someone accepts a counteroffer, she leaves the company within a year because of broken promises.

We believe there is never a good time to accept a counteroffer. Rarely have we ever seen a positive outcome.

You place high-ranking corporate executives but you also place executive assistants. Which is harder to find: a good corporate executive or a good executive assistant?

Both have their challenges. It’s harder to find a senior corporate executive. Most high-level jobs are very specific about the skill set and leadership abilities needed, which makes it a more difficult search. The candidate pool is smaller, the vetting process takes much longer, and the stakes are higher.

That said, a good high-functioning assistant is hard to find. It is challenging to find someone with the polish, technical skills and attention to detail whom you can trust with confidential information and who is happy in that role. It is extremely demanding and requires a great deal of patience, flexibility and ability to juggle many things. Also, a sense of humor helps.

How does Cameron Smith & Associates go about ensuring the right fit between an employer and employee?

We take time to form a relationship with both sides — client companies and candidates. Often we have to ask tough questions to ensure a good fit.

When we receive a job order, we focus on the hiring needs of the company and try to understand the type of individual it needs, the company culture, advancement opportunities and why the job is open. We ask about the positives of the company as well as any issues the company is currently facing. The more we know about the role and expectations, the better job we can do to ensure a successful hire.

We screen qualified candidates for the job and meet with them in person if we have not already done so. Meeting candidates goes a long way toward gauging their energy level, polish and overall interest in the opportunity. We’re looking for not only skill set but also personality, career goals and leadership ability. The hard skills show the person is capable of doing the job. The soft skills help make sure there is a long-term fit between candidate and company.