Bentonville, Arkansas – Now a Nationally Recognized Tourist Destination.

The opening of the Crystal Bridges Museum of American Art and its recognition as a major art institution have spurred much growth in other travel-related industries: the C21 Luxury Hotel opened nearby, many new restaurants have opened on or near the Bentonville square, and the Wal-Mart Museum has grown and expanded.

Travel and Leisure called Bentonville one of the top tourist destinations (worldwide) in 2012, and the Huffington Post has just named it to its 5 top “up and coming” tourist destinations.

Bentonville, the heart of Benton County, is a lovely, small city (less than 40,000 residents) in the northwest corner of Arkansas. Everyone over the age of six knows Bentonville is the home of Wal-Mart. But, how many have considered what that means to the economy and culture of the city and the whole of Northwest Arkansas?

Apples provided the main economic base in the late 1800s to 1920s. When apple production slipped from its heyday, poultry took over. Millions of broiler chickens are still raised in Benton County.

The beginning of dramatic changes for Bentonville occurred in 1962 when Sam Walton opened his first Walmart store in neighboring Rogers, Arkansas. No one, not even Sam Walton, could possibly have foreseen the changes that event would create.

By 1971, Wal-Mart’s first distribution center and home office opened in Bentonville. And, as they say, the rest is history.

Major corporations that supplied wholesale goods to Wal-Mart started sending major representatives to live in NW Arkansas where they could make decisions on the spot. As people and families arrived from all over the country, the need for housing, schools, churches, stores, recreation facilities, and the arts increased exponentially.

The lack of cultural events and the arts seemed to be the major complaint from newcomers. They loved the climate and natural beauty of the Ozarks but greatly missed events they were accustomed to in larger cities.

In time, the Walton Arts Center was built in Fayetteville, bringing Broadway shows and talent of all genres never before seen in NW Arkansas. A 600-seat expansion is underway.  

An even larger center for performing arts will soon be built in Bentonville.

2014 saw the opening of The Walmart ArkansasMusic Pavilion (AMP) in neighboring Rogers. As AMP is an open air venue, shows are limited to the warmer months.

The biggest and possibly the best cultural setting is the dazzling Crystal Bridges of American Art in Bentonville. It opened November 11, 2011 to great fanfare and continues to amaze and enthrall all who visit. The permanent collection is open for viewing at no charge thanks to a $20 million endowment from the Walton Family Foundation.

An exciting exhibition now on display is called The State of the Art and represents the work of current artists from all over the country. To make this exhibit, the curatorial team visited over 1000 artists nationwide and logged over 100,000 miles. The result is nothing short of stunning in terms of variety and quality of the arts today, as gathered in the exhibit. But you’d better hurry—it only runs through January 19 of 2015.

Another ambitious project of the museum was to dismantle a home designed by Frank Lloyd Wright and move it piecemeal from New Jersey to the museum grounds, where it is being re-built and restored. And a further project under construction is a children’s museum called the Amazeum.

Some other upcoming temporary exhibitions Crystal Bridges plans 2015 include:

Van Gogh to Rothko: Masterworks from the Albright-Knox Art Gallery

February 21 through June 1, 2015

Some of the featured artists in this exhibit are Vincent van Gogh, Jackson Pollock, Joán Miró, Andy Warhol, Mark Rothko, and Henri de Toulouse-Lautrec.

Game Fishes of the United States

April 4 through August 10, 2015

This classic collection elegantly conveys the drama of sport fishing and highlights the exploration and celebration of nature in American art.

Warhol’s Nature

July 4 through October 5, 2015

This exhibition from the Andy Warhol Museum in Pittsburgh will explore the artist’s surprising, lifelong engagement with nature.

Jamie Wyeth

July 25 through October 5, 2015

This exhibition is organized by the Museum of Fine Arts in Boston and will examine Jamie Wyeth’s distinctive approach to realism over the course of six decades. It will feature the artist’s portraits of subjects such as his wife Phyllis, John F. Kennedy, Rudolf Nureyev; and Andy Warhol.

Once-quiet, agricultural Bentonville has become a destination for art lovers. Most of the changes would have been unthinkable a few years ago. With the population of NW Arkansas currently about 500,000 and expected to reach a million people by the year 2025, these assets are welcome and appreciated.

And the impetus for the cultural creations can be credited in large part to the Walton Family Foundation and Sam Walton’s daughter Alice Walton.

Skyline Report for the First Half of 2012

In local and state publications, the official announcement of the most recent Skyline report happened last week. Actually, the Washington County preview for real estate agents and others was a couple of weeks ago at the now-biannual (used-to-be-quarterly) breakfast in Fayetteville. I was there; I just didn’t get my blog post written before the official announcement.


Anyhow, things are looking up in the NW Arkansas housing market, according to economist Kathy Deck, director of the Center of Business and Economic Research at the U of A, which is in charge of preparing the report for Arvest Bank.

In her presentation, she contrasted the positive economic outlook in NW Arkansas to that in the country as a whole, which she described as “slow, slogging steady growth.” She said that employment in NW Arkansas in June was at an all-time record high of 211,100 jobs, which equals what it was during the peak of the housing boom about 5 years ago. The importance of good employment opportunities is a constant theme in Deck’s presentations, since jobs are what draw people to the area and thus stimulates the housing market here.

Another positive highlight from the report was the lowering of multifamily vacancy rates in the area, which now generally are near 5%. Just a few yours ago in the 4th quarter of 2009 these hovered between 15% and 20%. In Fayetteville particularly, these positive numbers have resulted from the increase in enrollment at the University of Arkansas, which now has about 25,000 students. Recent university announcements have set the new goal for projected growth at 28,000 students. Although there are a number of projects in the pipeline, based on building permit applications, there is some room for expansion of multifamily dwellings.

As to residential building permits, there has been a small increase, but this is warranted as the existing inventory of single family homes is absorbed (that means that people are finally out there buying houses). Another factor is that more expensive homes are being built. Nevertheless, the number of so-called “spec” homes is still relatively low, unlike the boom years when too many homes, especially expensive homes, were being built.

The bottom line is that home prices in NW Arkansas appear to have bottomed out in many price ranges. It also varies according to town. In Bentonville, for example, absorption is up compared to Washington County, where it has remained somewhat flat.

Deck also suggested that interest rates will probably remain low for the foreseeable future, as the Federal Reserve tries to stimulate the economy. With continuing low interest rates and with continued absorption of inventory, prices may continue to rise—a definite turnaround from recent years.

For some of the more detailed data in the report, articles in the NW Arkansas Business Journal and the Arkansas Business Journal have some specifics.

I am a big fan of the Skyline report, and I think we NW Arkansas real estate agents are very fortunate to have such a wonderful resource at our disposal. Basically, it gives me facts and figures to support what I’m seeing on an anecdotal basis in my daily business of selling homes. Most realtors I talk to are in agreement that the market has picked up significantly this year, starting last spring. The new Skyline Report supports that perception.

Crystal Bridges Museum of American Art put Bentonville on Travel and Leisure's Top Travel Destinations List

You don’t have to make an appointment any more to visit Crystal Bridges. I found that out recently, when I visited for the first time with my artist/musician son who was home for the holidays. And it’s a wonderful place.

Crystal Bridges Museum of American Art is a treat for the senses. There are so many wonderful works of art that I can’t begin to cover them all in my blog, but I hope to pique your interest.

Just to know our little corner of the world is home to this beautiful museum is enough to make us all proud. The brainchild of Alice Walton, longtime art collector and daughter of Wal-Mart founder Sam Walton, created much controversy when she announced her plans in 2005. Some of the so-called ‘upper crust’ in art circles were aghast that major works would be somehow ‘lost’ in the Midwest.

The art is far from lost! It is alive and well and displayed in a work of art itself. The 201,000-square-foot museum, designed by the famed architect Moshe Safdie, is set beautifully into natural surroundings. Visitors will find eight linked pavilions bordering two large pools, which are fed by Crystal Spring. The architecture alone would be worth the trip even if it didn’t contain this marvelous collection of art from colonial to contemporary times. The pools are still in the process of being filled, however.

Even a brief glance at the list of art included within the collection shows there is something for everyone: Rosie the Riveter by Norman Rockwell, Asher B. Durand's Kindred Spirits, Maxfield Parrish's The Lantern Bearers, and Andy Warhol’s Dolly Parton. The “Rosie” work is not the famous one that everyone usually sees, however. It’s a different one.

There are eight trails on the wooded 120-acre property. I can’t wait to see dogwood trail in the spring! Also located outside is the sculpture garden.

Some of the educational offerings will include Skyspace Discussions, Shifting Perspectives with Nature, and Wonder World. Wonder World has some really interesting contemporary stuff, including a version of the Last Supper made entirely of spools of thread.

Perhaps one of the most outstanding offerings at the museum is the price of admission. Admission is totally free thanks to a $20 million donation by Wal-Mart Corporation.

Wal-Mart Family Foundation has pledged $800 million towards acquisitions, operations, and capital improvements, not to mention additional monies towards initial construction. Local philanthropists have also made additional generous donations.

This huge endowment puts it on a par with Museum of Modern Art in New York City.

Crystal Bridges Museum of American Art is already creating buzz in travel circles. Travel and Leisure.com lists it as one of the top destinations in 2012. The biggest buzz, of course, is among art lovers in the U.S. as well as overseas. It is such a huge boost to the art scene in NW Arkansas as well as local artists and aspiring artists everywhere.

I can’t sing too many praises about Crystal Bridges of American Art and its effects on the local economy. New businesses have already opened. A sparkling new hotel, 21c Museum Hotel, plans to open in January 2013. It will be similar to the original 21c in Louisville. Out-of-state visitors have already arrived and many more are coming.

You simply must go. If you’ve already been, go again. That’s what my friends and I plan to do. Just don’t go on Tuesdays. That is the one day each week when the museum is closed.

For more information visit the Crystal Bridges Website.

And here are a few informational newspaper articles from Arkansas Business, the New York Times, NY Times Travel Section, and Travel and Leisure magazine. For a great picture of the museum, click here.

Crystal Bridges Museum to be Free To All – Forever

What a wonderful gift! The Crystal Bridges Museum of American Art in Bentonville promises to be a premier destination for people from all walks of life and now, thanks to an endowment from Wal-Mart Stores, Inc., it will be free to all visitors.

Northwest Arkansas is a remarkable place to live, but most of the cultural events have been centered in Fayetteville with concerts and other events associated with the University and the Walton Arts Center. Then Alice Walton, only daughter of Wal-Mart founder Sam Walton, announced plans to build a major art museum in Bentonville, Arkansas.

The grounds and exterior of the buildings are extraordinary. I’ve seen the plans and 3-D models and I look forward to seeing them come to life. Many of the acquisitions of American art made so far are formidable, and the collection continues to grow.

For some people, seeing the exterior is perhaps all they could afford. With that in mind, Wal-Mart Stores, Inc., has announced a $20 million endowment to the museum, which will allow free admission to all visitors in perpetuity. Indeed, Wal-Mart’s $20 million gift is a gift to us all.

In addition to Ms. Walton’s personal backing, the Walton Family Foundation recently pledged an $800 million endowment for acquisitions, operations, and future capital improvements. That gift is probably one of the largest ever to an American museum.

So mark your calendars. The grand opening is scheduled for 11-11-11 (November 11, 2011.) I wouldn’t necessarily recommend trying to visit on opening day, but do plan to go at your convenience. It will be worth your time.

In an era where the arts nationwide have repeatedly hit the budget chopping block, a gift like this assures a continuing contribution to the quality of life of NW Arkansas. The museum will expand cultural and economic development not only in Bentonville but also throughout the area. What an opportunity for us all.

For more information about the endowment, click here. The Crystal Bridges website has more information about the building, grounds, collection and programs.

NW Arkansas Bike Trails

Joining bike trails from Fayetteville to Bella Vista is closer to reality due to a grant from the Department of Transportation. $15 million will be provided through the “Transportation Investment Generating Economic Recovery Program.”

Fayetteville, Bentonville and other NW Arkansas towns have already created many existing bicycle trails. But the idea now is to join them all. Read More.

Walmart Jumps on the Healthy Food Bandwagon

Walmart bashing is fashionable in some circles, but credit and recognition should be given when earned. They have made some excellent decisions in recent years, such as promoting sustainability and introducing “green” features in their stores.

Now Walmart has jumped on Michelle Obama’s healthy eating bandwagon. This bodes well in the fight to reduce childhood obesity and put healthier food on family dinner tables across the nation.

Our giant neighbor in Bentonville sells more groceries by far than any other retailer. Sheer size alone gives Walmart tremendous clout. It frequently pulls the strings that cause entire industries to shift priorities, such as recent labeling changes on their Great Value label and encouragement of other products to do the same.

Here’s a summary of what Walmart plans to accomplish by 2015:

*Reformulate packaged food to reduce salt by 25% and sugar by 10%.
*Remove all trans fats and hydrogenated oils from processed foods.
*Reduce prices on fresh fruits and vegetables.
*Lower prices on healthy-choice items such as whole-wheat pasta and low-sodium canned goods.
*Build stores in poor areas that don’t have grocery stores.
*Develop a logo for healthier items to make them easy to identify.

That’s quite an agenda for the next four years. Making food healthier while keeping the taste Americans have come to love will take a tremendous effort.

On the other hand, rarely does Walmart do anything that won’t make them more money in the long run. But this time the public good and their healthy food initiative may have common goals. The only other necessary ingredient is the average American--who also needs to jump on the bandwagon.

For more information:

Arkansas Business

Bloomberg News

NPR

Washington Post

Plans Announced for Walton Arts Center(s) Expansion

Bentonville will be the location of a new 2,200-seat Walton Arts Center. Hardly anyone was surprised at this news.

Several months ago, Walton Arts Center-Fayetteville was notified that the Walton Family Foundation would be lead donor only if the expansion were in Bentonville. This statement was crystal clear but it did not preclude proposals by various entities to build it elsewhere.

Fayetteville and University of Arkansas presented a joint proposal to expand the existing site in Fayetteville. Springdale proposed building a new WAC near the ballpark, which offered excellent access to I-540. Rogers offered a proposal and some individual landowners also made proposals.

So a new, larger performing arts center will be built at or near downtown Bentonville, but Fayetteville also received good news. A new 600-seat facility will be built adjacent to the beautiful, existing WAC. I believe this announcement intrinsically means Walton Family Foundation will continue to be the major supporter for Fayetteville WAC sites.

Exactly what “adjacent” to WAC means will be determined later.

As far as that goes, there are a lot of things to be determined in the future. Site selection, funding, timetables, cooperation from and with local governments, and space for additional parking in Fayetteville.

Talk of expansion has been ongoing for at least two years. Big deals take time and this is a big deal. The announcement by Walton Family Foundation is a win-win for both Bentonville and Fayetteville. To stop its support for WAC-Fayetteville would have been catastrophic for the city.
The announcement is certainly wonderful news for all of Northwest Arkansas.

But the drama is not all on-stage. The attorney for the City of Fayetteville is of the opinion that agreements signed in the past bind WAC to be located only in Fayetteville. He opines that Fayetteville should sue to stop the Bentonville site. At this point no official action has been taken. In the meantime, University of Arkansas issued a statement that it will not support a lawsuit. And in today’s paper, some Fayetteville officials have gone on the record against litigation, seeing it as divisive and counter productive.

The future looks bright to me. Let’s leave the drama to the actors. I’m all for culture, the arts, and good entertainment. The Walton Family Foundation has done and continues to do many good works for the people of Northwest Arkansas.

For more information:

Walton Arts Center
Walton Arts Center Expansion Plans

New Outdoor Ice Skating Rink Opens in Bentonville

A beautiful new facility just opened in Bentonville’s Ernie G. Lawrence Plaza, just a block or so off the square. It includes an outdoor skating rink for winter and will be converted to an interactive water feature during warm months. What fun!

Ice skating is a wonderful activity for people of all ages. I grew up in Northern Minnesota-- hockey country--where I learned to skate on a rink like this. I spent many hours in the cold outdoors and it was exhilarating (but thank goodness also for warming shacks). I also tried my hand at ice hockey, even though it was a "boy sport" then.

For the most part, it doesn’t get cold enough here in NW Arkansas to find a safe outdoor venue for ice skating – until now. Bentonville’s latest contribution to quality of life now provides this opportunity to the public. Only $3 to skate and skates can be rented for only $2 more.

I’m still trying to figure out how they can keep the ice frozen when the temperature gets above freezing. The recent nippy days and nights are usually the exception rather than the rule, as it gets up to the 40s or even 50s during the day during our Arkansas winters. But if there is a secret formula for the ice, more power to the city of Bentonville.

The Jones Center for Families in Springdale has offered a big, beautiful indoor skating rink for the past 15 years and it is open year round. People can simply skate, learn figure skating, play in hockey leagues, or go curling. The rink provides fun for ages 4 to 104 (I don’t think anyone has reached maximum age yet!)

If you’ve never ice skated and would like to get inspired, here’s a great feature-length documentary for the whole family to watch.

Two More Awards Earned by NW Arkansas Communities

There are so many valid and varied reasons for the outstanding quality of life we enjoy in NW Arkansas. I’ve written many times about clean air, beautiful scenery, recreation opportunities, entertainment, and more that all of us more or less take for granted.

Now I’m pleased to note that the cities of Bentonville and Fayetteville have each been named a Volunteer Community of the Year. The award was given by the Office of Governor Mike Beebe. A total of 12 awards were given throughout the state.

It’s the second year in a row Fayetteville has earned the title. For Bentonville, it’s the first year (and I’m sure there will be more awards in the future.)

According to city of Bentonville, 12,000 volunteers worked in excess of 163,000 hours during 12 months ended August 31, 2010.

Fayetteville, with its much larger population, logged 38,000 volunteers who donated more than 500,000 hours.

Volunteers serve in a multitude of ways – on committees and boards, in libraries and schools, animal adoptions and shelters, recycling, community events, food pantries, and more.

Every one of these wonderful people deserves our thanks for helping to make our communities great places to live.

My hat is off to them. It’s nice to see them receive some official recognition.

Let’s Keep Walton Arts Center in Fayetteville

There’s been talk of enlarging or building a new Walton Arts Center for more than two years. A feasibility study indicated Northwest Arkansas had grown to the point that it could support an arts center with 2,500 seats.

The existing WAC opened to great fanfare in 1992 in downtown Fayetteville and proved to be the impetus that helped revitalize the entire area. Since then WAC has hosted world famous artists, Broadway shows, ballets, and too many more to list in this space. However, it has only 1,200 seats and limited parking.

The city of Fayetteville owns WAC but it is widely known that the Walton Family Foundation has always been the lead donor.

So it was bad news when the Foundation recently said it would not continue to be the lead donor if a new WAC was not built in Bentonville. To most people, that seemed to mean it would be Bentonville or it just wouldn’t be.

But Walton Arts Center invited proposals for enlarging or building a new arts center and received 24 proposals from cities, chambers of commerce, the U of A, and individuals. The next step will be review of each proposal. The review committee hopes to narrow the proposals down to perhaps three by December 2010.

I know the review will be a daunting task. Personally I would love to see Walton Arts Center stay in Fayetteville and I believe Fayetteville’s proposal stands an excellent chance of approval. It is the only one of the proposals that offered potential funding of approximately $33 million.

That’s not to say Springdale and Bentonville did not make good proposals – they certainly did. I’m just prejudiced by my affinity for Fayetteville. Plus the Fayetteville proposal has the advantage of expanding the facility on the current site.

Wherever the new Walton Arts Center ultimately lands, it will be a major economic benefit to that area.

If you want to view the proposals, click here. For more information, click here.

Bentonville Schools Millage Increase Passes with Ease

No one likes higher taxes, but sometimes they are necessary to provide for important things—things like a good education for our kids. And in the case of NW Arkansas, sometimes those higher taxes also contribute to the high quality of life for which our area keeps getting kudos and recommendations from a variety of sources nationwide.

On this occasion, I want to commend the voters in Bentonville School District for passing a 3.6 mil increase in property taxes. The increase will provide $70 million for a new K-6 elementary school and junior high school as well as funds for maintenance throughout the district. The voter turnout was high and the increase passed with approval of about 60% of voters.

It is not easy to have proposals to raise taxes pass voter muster in this difficult economy. Fayetteville School District saw the proof of that last year when their millage increase proposal was defeated.

But a look at the bigger picture confirms that the continued growth of our area (and our state) depends on having an educated base of employees. A good education and promotion of schools is essential to development of the area and contributes to quality of life of its citizens.

Good schools also add value to real estate. Two identical houses, one in a highly rated school district and the other in a lower rated district, will have different values due to those ratings.

Springdale School District is seriously considering asking voters to approve a 1.9 mil increase this year to build new schools and improve athletic facilities. If that proposal passes, the district will qualify for $15 million from the Arkansas Department of Education’s Facilities Partnership Program.

And last but not least, Fayetteville has totally revamped its priorities and hopes to get a millage increase passed this year. If so, the district could also receive funds from the state’s Facilities Partnership Program.

Bentonville voters have set the new standard. Their vote denotes a populace that recognizes the importance of education. They “get it.”

Market Report for June 2008, Northwest Arkansas Real Estate

According to a recent report from the National Association of Realtors®, existing home sales in June in the US are down by 2.6% compared to May and down 15.5% compared to June of last year. For all home sales, single-family home sales declined 3.2% to a seasonally adjusted annual rate of 4.27 million in June from 4.41 million in May, and are 14.8% below the 5.01 million-unit pace in June 2007.

Total inventory in June was up by 0.2%, which represents an 11.1-month supply at the current sales pace, up from a 10.8-month supply in May. The median price for June was $215,100 in June, down 6.1% from a year ago when the median was $229,000.

So how does NW Arkansas compare to statistics for the country? It’s different for each town, and also differs according to price range. Following are some statistics for the area with global numbers for each town (doesn’t take into account price range).

No. of Sales Median Price Av. DOM Supply (in Mo.)

Bentonville

June 2008
78 $197,950 147 20.18

June 2007
87 $196,000 140 11.70

Fayetteville

June 2008
109 $168,500 140 14.96

June 2007
135 $178,500 117 10.97

Rogers

June 2008
84 $166,500 167 18.01

June 2007
125 $178,500 157 13.64

Springdale

June 2008
82 $143,000 140 15.36

June 2007
108 $139,900 128 11.58

Bella Vista

June 2008
83 $155,000 150 13.15

June 2007
108 $162,450 135 10.72

So what do these numbers mean? In terms of months supply of homes, all of the NW Arkansas towns are above the national average, with Rogers and Bentonville significantly so. In fact, the Bentonville supply of homes on the market is almost double what is was last year.

In all cases, the Days on Market (DOM) is higher than it was last year, which means that homes are taking longer to sell. In all of the NW Arkansas towns the number of homes sold in June of this year is down, compared to June of last year. However, unlike the national statistics, more homes were sold in June of this year in all NW Arkansas towns than in May (statistics not reproduced here).

The median price for homes in all of the NW Arkansas towns is much lower than the national average. This means that NW Arkansas is still a very affordable place to live. Springdale and Bella Vista are the most affordable with a significant supply of homes in price ranges within reach of “average” folks. However, the median price range of homes in Springdale and Bentonville in June of this year is higher than that of June of 2007.

I should mention that median price is not necessarily the best indicator of whether prices are coming down or not. However, that is the best statistic we Realtors® have to work with. The median price is that price at which half of the homes sold are more expensive than the median price and half are less expensive.

From practical experience, I am finding that many offers are coming in at substantially lower prices than the list price. Buyers seem to think that all sellers are desperate, which is not necessarily the case. In addition, buyers are asking for more in the way of amenities (i.e. throw in blinds, fences, etc.) on new homes, and on re-sale homes they are asking for closing cost help and down payment assistance.

On the other hand, there are also many bank-owned homes (foreclosures) on the market. This has brought prices down, when considered from a statistical point of view. These homes are competing with “normal” homes for sale and making it difficult for the latter to sell at prices that they would usually bring.

For those who are worried about the so-called "declining" value of their home, the thing to remember is that a home purchase is traditionally a long-term investment. Real estate is cyclical, and what comes down will eventually go up. For folks who will be in their homes over a longer period of time, not to worry. These numbers will change and the market will improve. For sellers that don't have to sell right now, my recommendation is not to put your home on the market; wait a year or two.

Bottom line is that there are a lot of homes on the market now in NW Arkansas. In “realtor-speak” we have a “large inventory.” What this means for sellers who must sell now is that they must price their homes competitively for them even to be looked at, let alone sold. For buyers, it is a golden opportunity—lots to choose from at lower prices. Now is the time to buy, especially since interest rates are still low.

For more information:

http://rismedia.com/wp/2008-07-24/existing-home-sales-down-in-june/
http://www.realtor.org/research/research/ehsdata
http://www.realtor.org/press_room/news_releases/2008/ehs_down_in_june

Bentonville School District Voters Say No

Voters in Bentonville, one of the fastest growing school districts in Arkansas, rejected a proposed millage increase this past week. The district asked voters to approve a 3.99-mill increase in property taxes. Preliminary totals indicate the vote was 2,435 against and 1,699 in favor.

The increase would have made the district’s millage rate 44.09 mills, the seventh highest rate in Arkansas. Owners of a home valued at $200,000 would have been taxed an additional $160 annually if the measure passed.

(For sake of comparison - Springdale’s rate is 38.6, Rogers’ rate is 38.7, and Fayetteville’s is 43.8. However, that may change as all three districts are considering the possibility of passing millage increases to build new schools.)

Bentonville’s millage increase would have permitted a $209 million bond to purchase land, build six schools, make improvements to existing schools, and provide technology upgrades. In addition, some of the money would have gone to operational costs.

The district also planned to restructure existing debt.

In 2002 Bentonville voters approved a $110 million in funding to construct of five schools, athletic facilities and an addition to the high school. Since that vote, growth has been almost unstoppable. The number of students increased by 1,100 in 2005-06 and another 841 this school year.

A failed millage increase this year undoubtedly means the district will have to make some revisions and ask for another increase next year.

For more information:

http://www.nwarktimes.com/adg/News/219315/

http://www.nwarktimes.com/bcdr/News/59440/

Roads Must be Improved ASAP

Everyone says NW Arkansas is a wonderful place to live – until they are stuck in the traffic during the daily commute to and from work. At those times of day, most people agree gridlock is not desirable.

Even mid-day, traffic can sometimes be insufferable. The intersection of Joyce Boulevard and North College Avenue in Fayetteville is either the busiest or second-busiest intersection (depending on which statistics you read) in the entire state of Arkansas!

U.S. Highway 412, the main road to Tulsa, runs east-west through Springdale and carries an immense amount of 18-wheelers mixed in with passenger vehicles. It seems there are traffic lights every block or two.

Walton Boulevard in Bentonville resembles a parking lot during the daily commute and lunchtime isn’t much better.

Something must be done to construct/improve/widen roads without further delay.

Many local highways that carry heavy traffic are two-lane roads, turning and twisting through the countryside. If you enjoy a leisurely drive, the roads are beautiful. But if you are trying to get somewhere in a timely manner, that trip can be slow and stressful. Time and money are wasted minute-by-minute and mile-by-mile.

The problem isn’t that the powers-that-be haven’t realized something has to be done. It’s more a problem of money, of course, and location.

Nearly everyone wants the improvements but very few want them in their own backyard.

Springdale has been in lengthy discussions about widening Wagon Wheel Road from Hwy. 71B to I-540. Should it be four lanes with a tree-lined boulevard or five lanes including a left turn lane?

The answer depends on where you live. The commuter wants roads where they will improve his trip. The farmer wants to be able to move his slow-moving equipment from one area to another. Folks in the new subdivisions want aesthetically pleasing surroundings - not sounds of the freeway next door.

Fayetteville is considering widening Mission Boulevard, Township, North, Zion and Hwy. 16 to Elkins and more. These roads wind through neighborhoods crisscrossing the city.

I fear the same fate awaits these projects as befell a similar proposal several years ago when Township Road was proposed as a wider "artery" street. Neighbors vehemently opposed it and the proposal died.

We can play ostrich by burying our heads in the sand or we can face reality. Growth is here and more is on the way. Growth is inevitable and necessary if the area is to continue thriving.

Let’s wake up and smell the exhaust fumes. We will soon be in total gridlock if we don’t take steps to improve the infrastructure. We must prepare!

The City of Springdale deserves commendation for their proactive approach to traffic. They are currently building east-west corridors to help alleviate the strain on U.S. Hwy. 412.

Also on the drawing board is the U.S. 412 bypass. Plans call for Hwy. 412 to go north from west of Tontitown, continue north of Springdale, and then turn south to rejoin Hwy. 412 east of the Springdale city limits. Cost estimates for the bypass are currently in the neighborhood of $350 million. However, no one dares guess when it might actually be built and inflation drives up the cost every month.

For more information:

http://www.nwanews.com/story.php?paper=adg§ion=News&storyid=180296

http://www.nwanews.com/story.php?paper=nwat§ion=News&storyid=50024

First Quarter 2007 NW Arkansas Housing Market Update

According to the National Association of Realtors®, the GDP (Gross Domestic Product—or total value of goods and services produced in the US) grew at a slower than expected 1.3% in the first quarter of 2007, due in part to the housing slump across the nation.

On April 25 the National Association of Realtors® announced that sales of existing homes plunged 8.4% in March, the worst one-month decline in 18 years. The median price of an existing home nationally fell to $217,000, a 0.3% decline from March 2006. Inventories of unsold homes nationally rose to a 7.3-month supply, the highest level since October. New home sales in March rose 2.6% over February, but were down 23% from March 2006, the second weakest year-over-year sales performance since September 2001, according to an April 25 report from the Census Burea. Surprisingly, the median price nationally of a new home sold in March was $254,000, up 6.3% from the price of a new home sold a year earlier.

Home sales in NW Arkansas, as elsewhere, were down in the first quarter of 2007 compared to the last quarter of 2006. This is a normal seasonal occurrence, since the NW Arkansas housing market is largely weather driven, and we had awful, cold weather. But homes are now taking longer to sell due to elevated inventory in almost all price levels, with the average days on market (DOM) up in all of the NW Arkansas towns. The “buyer’s market” discussed in media reports does exist here, and with high inventory and falling prices, it might be a good time for buyers to purchase a home in NW Arkansas. Nevertheless, each town does have slightly different market trends.

An exception to what I have said above, Fayetteville actually experienced an increase in home sales in Q1 2007 with 258 homes sold (86 per month), compared to 248 homes sold in the Q4 of 2006 and the same number sold in the Q1 of 2006. As for prices, after a drop of almost 14 percent in the last quarter of 2006, the average price of homes sold in the first quarter of 2007 increased by almost 6% to $216,013. The median price of homes sold was $189,900, and the DOM was 137, up from 110 in the 4th quarter of 2006. The highest average sales price in the past couple of years was $236,616 in the 3rd quarter of 2005.

Springdale’s housing market is down from both the past quarter and from the same quarter last year. There were 275 homes sold in Q1 of 2007 compared to 283 in Q4 of 2006 and 313 in Q1 of 2006. Average DOM has increased to 132 over the past year from 111 in Q1 of 2006. The average and median sales prices have also decreased over the past year. Average sales price is down almost 8% compared to Q1 last year and almost 3% from the last quarter. The average sales price for Springdale during Q1 of 2007 was $160,882 after a peak in Q2 of 2006 of $181,380. The median price of homes in Springdale in Q1 of 2007 was $149,900—a decrease to the same level as in Q4 for 2005. It should be mentioned, however, that not only does the decreased average and median sale price reflect lower prices for homes, but also the increased availability of less expensive homes. This might be a good time to invest in a home in Springdale.

Bentonville is still the most expensive place to purchase a home in NW Arkansas, with an average sale price of $235,229 during Q1 of 2007, compared to $212,666 in Q1 of 2006. However, prices have dropped slightly from the highest average sale price in the past couple of years, which occurred in Q4 of 2006 at $238,659. However, the median sale price is now the highest it has been at $209,000, compared to $194,500 in Q4 of 2006 and $180,000 in Q1 of 2006. The median price represents the middle price of all homes sold, with equal numbers of more expensive and less expensive homes sold. This increase represents a 16% increase compared to Q1 of 2006 and almost an 8% increase from the last quarter of 2006.

Average days on market (DOM) in Bentonville has reached 162, up from 142 in Q4 of 2006 and 124 in Q1 of 2006. And the number of homes sold in Bentonville during Q1 of 2007 has decreased significantly to 151, compared to 192 in the same quarter last year and 197 in Q4 of 2006. The highest number of homes sold in the past couple of years in Bentonville occurred during Q3 of 2005, 292 homes.

The picture in Rogers is slightly different from that of Bentonville. It is the same in that fewer homes were sold in Q1 of 2007 compared to Q4 of 2006 (279 compared to 319), but when compared to Q1 of 2006 (275 homes sold), more homes were sold. Also both median and average prices have declined. The average sale price in Q1 of 2007 was $193,807 and the median sale price was $160,000. This represents a drop of 14% compared to Q4 of 2006 and 13% compared to Q1 of last year in average sale prices, and a drop of over 7% in median sale prices compared to Q1 and Q4 of 2006. As in Springdale, this signifies both falling home prices and the increased availability of less expensive homes. The DOM is up to 167 days, compared with 147 in Q4 of 2006 and 122 in Q1 a year ago.

Bella Vista’s market, in some respects, has remained somewhat steady in comparison to the other towns of NW Arkansas. This could be because the price ranges of homes are more limited. Nevertheless, there was also a decline in the number of homes sold in Q1 of 2007 compared to the previous quarter, from 243 to 200. The number of homes sold in Q1 of 2006 was 265. As in the other NW Arkansas towns, average DOM increased from 135 to 145, the highest it has been in the past couple of years.

But prices haven’t changed that much in Bella Vista. The average sales price did decline slightly from $178,789 in Q4 of 2006 to $176,201 in Q1 of 2007 (only 1.51%). The median price increased slightly in the same period from $155,000 to $159,000 (only 2.58%).

All in all, many of the changes are normal seasonal ones and follow similar patterns to previous years. As mentioned earlier, the weather does have a significant effect on the NW Arkansas housing market, and this winter has been extremely cold. Another factor has been the large amount of media type about the “housing slump” which made many buyers afraid to purchase; they didn’t want to pay too much if prices were going down.

Until the past couple of quarters, NW Arkansas seemed immune to these national trends with home prices rising even as they were bottoming out in other parts of the country, but an adjustment has finally occurred.

Yes, prices have come down, so this might be a good time to buy, since the supply of homes is up and interest rates are still down. It is definitely a buyer’s market in almost all price ranges. And now that the weather is improving, I have noticed a decided increase in buyer activity.

Note: Data for local statistics in this report is from the NW Arkansas MLS and included only homes that were listed by real estate agent members of the MLS. It does not include For Sale by Owners or other properties not listed by a real estate firm. For comparison purposes the national median home price in Q4 of 2006 was $219,300. NW Arkansas is still a “good deal.”

These figures do vary according to price range, city, and neighborhood. If you would like more information on your specific neighborhood, email me at judy@judyluna.com.

For more information on other economic indicators for Q1 2007:

http://www.realtor.org/Research.nsf/files/gdp.pdf/$FILE/gdp.pdf

2006 NW Arkansas Housing Market Report

I have just finished a marketing report for 2006 for NW Arkansas. It gives conditions of the housing market, absorption rate, the number of homes for sale by price range, and much more. The towns covered are Bentonville, Fayetteville, Rogers, Springdale, and Bella Vista. See what home prices have been doing in the past years to help understand what is happening in the market now as the needed "adjustment" is also occurring here. To view this report, visit my main website at http://www.judyluna.com and click on 2006 Market Report under Articles and Links on the left of the home page.

Bentonville's New City Website is a Winner!

Bentonville is to be commended on their newly designed website. User friendly, it is a wonderful resource for builders, developers and real estate agents in the area, as well as for the general public. It has lots of “goodies” and could serve as an example for other towns in NW Arkansas.

In their GIS (Geographical Information Sytem), there are interactive maps for all uses, including a link to Benton County parcel and lot information as well as FEMA flood zones (present and proposed), zoning and land use information, traffic counts on major streets, and the master street plan. For builders and developers, the utility maps show water lines, sewer lines, storm drainage, and fire hydrants. There are also school district, cemetery, street construction, and census maps. One must download a plug-in to use these features, but once done, the information is all there.

The eGov-Online section has 3 sections: one for paying utilities on line and checking your utility usage, the second for builders who want to apply for a building permit or check the status of a current permit, and the third for developers and others who have applied or want to apply to the planning commission for development projects, rezoning, variances, or conditional use permits. All of the forms are there and downloadable, along with instructions, calendars, and other information needed to guide users through the process.

The site also has general information for residents of Bentonville on such topics as recycling, the compost facility, city government, tax information and the like. There are also links to other sites such as Ozark Regional Transit, Bella Vista Village, and the new Crystal Bridges art museum.

According to Bentonville officials, the new site was developed with users in mind. Many of the phone calls currently received by city officials and employees are from residents with questions that can now be answered 24/7 by information on the website.

Good job, Bentonville!

The website address of Bentonville’s new website is:

http://www.bentonvillear.com/

More Options for NW Arkansas Sports Fans

The City of Bentonville had big plans for a new sports arena. It recently outlined plans for City West, a 90-acre mixed-use development that city leaders hoped would be developed in the western section of the city.

It sounded great – in addition to a 9,000-seat sports and entertainment arena, the complex would also have had a bowling alley, a multi-screen movie complex, and a movie and sound studio. Hotels, office, retail and residential spaces would have completed the complex when it was built out.

Everything changed October 19th when the Rogers City Council announced the sports arena would be built in their city near I-540 and Pleasant Crossing. Seems the distance from I-540 and lack of infrastructure (mainly roads) were the deciding factors in moving the development from Bentonville to Rogers.

The name has also changed. It will be known as the Northwest Arkansas Sports and Entertainment Arena.

Talk has already started about bringing a WNBA team to the new arena. The plans for the arena are basically the same as before: 9,000 seats and forty luxury boxes. The project will include a training center, as well as two hotels and various commercial and retail businesses.

Site work is expected to begin in four to six weeks with a projected completion date of Sept. 15, 2008.

Meanwhile, the City of Springdale has formally signed a contract to bring Double-A baseball to the stadium it plans to build in southwest Springdale. The Kansas City Royals’ farm team of the Texas League, currently known as the Wichita Wranglers, will be renamed and call Springdale home when the 2008 season starts.

For more background on the baseball stadium in Springdale, please read my blog article dated July 21, 2006.

Both projects are huge undertakings and are sure to spur even more economic development in our area.

For more information:

http://www.nwanews.com/story.php?paper=bcdr§ion=News&storyid=39468

http://ww .nwaonline.net/articles/2006/09/27/news/092806szrichvisit.txt

http://www.nwanews.com/bcdr/News/41098/

Beaver Lake is Rising but Water Conservation Still in Effect in Bentonville and Rogers

Northwest Arkansas has received several inches of much needed rain in the past couple of weeks but more is needed to get back to normal levels. It would appear that the major drought affecting this area has been alleviated for the time being.

As I write this article, the water level in Beaver Lake is in excess of 1113 feet above sea level. If memory serves me correctly, that is some eight feet above the low we experienced earlier this year. The optimum level is 1120 feet above sea level.

We are very fortunate to have the Beaver Water District to meet the needs of the people and businesses in this area. BWD currently has sufficient water and treatment facilities to supply up to 100 million gallons of treated water per day. So far that is well above the highest demand. The district has on-going expansion plans and resources to stay ahead of our growing population’s demand.

Getting the water to the users is the problem for Bentonville and Rogers. The two cities now share two water transmission lines, one 24 inches wide, the other 30 inches. Together, the lines can transport a maximum of 29.5 million gallons of water a day to the two cities.

Bentonville has started construction of a 48-inch water line which is scheduled to go on line in April or May 2007. When Bentonville’s new water line is complete, Rogers will purchase the two older lines and take over as sole user.

Until then, water conservation is the rule for both cities. Procedures, consisting of six stages of conservation, were put into place in 2005. Water usage drops during the winter months so the conservation rules were temporarily relaxed.

With summer returning and the population continuing to swell, it would seem likely that even more water conservation will be needed this summer.

The first two stages of conservation are considered voluntary and consist mainly of common sense – limit time in the shower, run the dishwasher and washing machine only when full, reduce outdoor usage and so forth. From there, the stages continue through moderate mandatory measures all the way up to and including water rationing.

For more information:

Beaver Water District information and links to many other resources:
http://beaverwaterdistrict.org/

City of Rogers Water Utilities:
http://rwu.org/conservation.htm

City of Bentonville water conservation ordinance: http://www.bentonvillear.com/docs/utility/water_conservation_ordinance.pdf

Crystal Bridges Museum of American Art

Northwest Arkansas in general and Bentonville in particular will take on a new personality when Crystal Bridges Museum of American Art opens. Benton County is already facing phenomenal growth with homes, offices, businesses, huge shopping malls, and a brand new hospital popping up all over former agricultural land.

Crystal Bridges Museum of American Art plans to open in 2009 on 100 acres in Bentonville, not far from Sam Walton’s original 5- and 10-cent store. The museum will house the private collection of American art that Sam’s daughter, Alice Walton, has been quietly collecting for years.

It is estimated that each year approximately 250,000 visitors will come to see not only this fabulous collection but also sculpture gardens and collections on loan from other museums.

Just think: once-quiet Bentonville will become a destination for art lovers. I’m sure the museum and its programs will provide cultural, educational and economic benefits to the area that would have been unthinkable just a few years ago. With the population of our area of NW Arkansas expected to reach a million people by the year 2025, Crystal Bridges Museum of American Art promises to become an incredible asset.

For a glimpse of the planned building and some of the art, go to the museum's website http://www.crystalbridges.org/