White Lie or Webb Lie?

In the October 20, 2009 Springdale Chamber of Commerce Board of Directors Minutes, President/CEO Perry Webb reported after reviewing the July, August and September financial statements he had to transfer $50,000 from the Chamber's reserve account to the operating account.

Webb goes on to say that this is the first time in fifteen years this had been necessary.

That being the case, I wonder what this $100,000 transfer from the reserve account to the operating account made much less than fifteen years ago (June 2008) was for.

Legal Expense

The Springdale Chamber of Commerce reported on their IRS Form 990 that they spent ZERO dollars for legal expenses in calendar year 2008. If that is the case, what or who was the $7,306.25 in payments to Little Rock Law Firm Friday, Eldredge & Clark for?

October 24, 2008 $5,850.00

December 22, 2008 $1,456.25

US Chamber

A few days ago we talked about Mayor Sprouse being featured in the U.S. Chamber of Commerce magazine, Free Enterprise.

With all the negative publicity the U.S. Chamber has received lately, I'm not sure this is an organization the Mayor should be proud to be associated with.

Then again, apparently he is proud to be a member of Springdale's Chamber Board of Directors who openly support the US Chamber on their facebook page and in their newsletter The Business Intelligence Report.

By the way, between 2006 and 2008 the Springdale Chamber handed over to the U.S. Chamber a whopping $23,581.00. This does not include the $17,883.33 paid to "Your Chamber Connection" which may or may not be connected.

SLATE: Chamber of Horrors

Climate Progress: US Chamber of Commerce

Velvet Revolution: Stop the Chamber

Apple Resigns from Chamber

The New Yorker

The Wonk Room

Friends of the US Chamber

Work in Progress

Lindsey Files Chapter 7

Everyone seems to be talking about John David Lindsey's recently filed Chapter 7 bankruptcy petition.

The multi-million dollar filing included three Springdale banks, the Chamber of Commerce and many other businesses and individuals.

The Iconoclast

Rogers Arkansas Blog

The following are listed as creditors from Springdale:

B&M Lawncare
Bolt & Screw Supply
Bub's, Inc.
Bumper to Bumper
Cintas
Digital Printing Solutions
E&E Parts & Equipment
Farris Insurance
First Federal Bank
Fuel & Supplies, Inc.
G&C Family, LLC
Grainger
Heritage Hills, POA
Kiewit Southern
Layman's General Hardware
Liberty Bank
Marks Supply
Meeks
MHC
Moore's Retread & Tire
National Home Center
Neil Johnson
Northwest Tire Service
Offset Press Ink
Ozark Laser Systems
PBS
Peaks Homes 2
Precision Service & Sales
Ruby Lawson
Springdale Chamber of Commerce
Springdale Water Utilities
The Peaks at Pinnacle Hills
Today's Office
Tuscaney LLC
United Bank
Word's Electric

The Truth Hurts

Just a few weeks ago, the Springdale Chamber of Commerce reported to the city council that unemployment is down, new business is up and everything looks rosy for the future (especially the ballpark district).

Then I read the Arkansas Watch blog. Moderator Mike Moore steers us to a nationwide interactive map of unemployment from January 2007 to December 2009. Click play and witness the frightning unemployment statistics from the U.S. Department of Labor Bureau of Labor Statistics.

Economic Report - January 2010

The Springdale Chamber of Commerce is required to submit to the city council, documentation of where taxpayer money given to the chamber by the city is spent.

Perry Webb was quoted in December, "the reports will include invoices to show the money spent from public funds."

Well, the January 2010 economic report doesn't exactly say anything like that. The report consists of vague notations like a meeting here, a visit there, and maybe a discussion. The chamber doesn't name names and I didn't see any invoices.

Basically jobs are up, unemployment down, and the chamber is consulting about the ballpark region.

What question about money?

Chamber Board

Springdale Mayor Doug Sprouse is featured in the February issue of the U.S. Chamber's magazine, Free Enterprise. The article entitled, "Dreamers and Doers -Running a City Like His Business" brings national focus upon our mayor, the city of Springdale and Springdale's business community according to Perry Webb.

Mayor Sprouse being on the Board of Directors of the Chamber of Commerce is a serious conflict of interest since the mayor is directly involved in the decision to hand over taxpayer's money to the chamber.

The business of politics and the politics of business should be separate. Maybe this explains the slogan: Leading Business Leading Springdale. Can you do both at the same time? Should you?

Chamber of Commerce IRS 990 Filings

2004

2005

2006

2007

Trash Talking

Was Mayor Sprouse bought off to rush the city council to pass the extension of the current contract with Waste Management another five years?

The Morning News quoted Sprouse as saying "if we wait and go to bid...we may lose our bulky waste program." Was that a threat?

Alderman Mike Overton and a few residents were on hand and requested the contract be put up for bid.

Sprouse is quoted as saying, "I think this is the best deal we can get for Springdale." How can he think such a thing if he didn't give anyone the opportunity to bid?

Maybe they will have a celebration party in the baseball suite.

Superintendent Looks at Property Tax Increase

We have a new blogger on the block, Wazup NWA who reported today that Springdale School Superintendent Jim Rollins is putting together a committee of 50 residents to determine whether or not to seek a property tax increase via special election in September to build a new middle school and junior high.

The Morning News article link here.

This reminded me that Rollins was also in the news recently when his contract was renewed through the end of 2012.

Rollins receives $206,698 plus $30,000 every three years, plus a paid vehicle (including all fuel, insurance and maintenance). Board President, Danny Dotson reported Rollins will be receiving a new ride this year to replace the Tahoe that has too many miles on it.

With that being said, a tax increase wouldn't hurt Rollins' pocketbook too bad.

I hope the committee doesn't fall for this special election nonsense. Special elections are nothing more than a way for the politicians to get their special interest groups to pass their pet projects.

Does buying a baseball stadium ring a bell to anyone?

Same Rules Apply

As I was driving up Huntsville Avenue yesterday, I pulled up beside a Springdale police car. I did a double take because the car had no license plate. I was too scared to hang my head out the window (plus it would have messed up my hair) to try and take a picture of it with my phone.

I wonder how long I could drive around town without a license plate before Number 0315 noticed me?

IRS Form 990 - Year 2008

We recently obtained a copy of the most current IRS Form 990 filing for the Chamber of Commerce of Springdale, Arkansas for the year 2008.

The return was signed by Perry Webb on October 13, 2009 after requesting an extension back in July.

It is certainly disheartening filers are not required to separate their actual income from the perks. I'm not a CPA or tax guru, but as an Average Joe I found a few interesting tidbits.

For example, Page 4, 28b asks: During the tax year, did any person who is a current or former officer, director or trustee, or key employee have a family member who had a direct or indirect business relationship with the organization. They answered no. The form lists Webb as an officer and we already know not only was his daughter a paid employee, but she and her husband were also being paid for landscaping. Is that not a business relationship?

Page 10 lists total travel expenses for the year as $14,631. [cough]


Page 10 also lists $0 spent for conferences, conventions and meetings. If it wasn't travel and it wasn't a meeting, conference or convention what exactly was Webb's purpose in Florida and Colorado in 2008?

Maybe his trips were included in the $563,969.00 listed as "activities" or the $282,647 for "other".

The Taxable Fringe Benefits Guide

January 2010 Taxable Fringe Benefits Guide.

Just a friendly reminder to report those fringe benefits to the IRS!

Definition of Employee: All of the following are considered employees for purposes of working condition fringe benefits:

Reg. §1.132-1(b)

• Current employees
• Partners
• Board of directors of the employer
• Independent contractors
• Volunteers

No Bids Allowed for Waste Contract

The City of Springdale has had the same basic waste removal contract since former Mayor Charles McKinney signed with Sun Ray Services on December 12, 1995.

An eight page addendum was approved in March 2007 by Mayor Jerre Van Hoose making the city responsible for billing and collection of residential payments.

Another two page amendment is currently to be added renewing Waste Management's contract for another five years.

At a recent city council meeting, citizen Tom Smith encouraged the city to take bids for the city's trash contract. Additionally, Randy Pounders, GM for Roll-Off Services requested the opportunity to bid on the service.

The minutes do not say exactly what the council's response was, but apparently it was no.

Ski Colorado

When things get too hot in The Land of Sunshine Mr. and Mrs. Webb like to cool off in Colorado.

Who wouldn't enjoy...

Breakfast at Paradise Bakery Cafe in Denver; lunch at Bob's Place in Avon; dinner at Gore Range Brewery in Edwards; A trail ride or rafting trip from Triple G Outfitters in Wolcott. Of course the $422.03 rental car was covered too.

The Webb's also enjoyed the ski train package back in March of 2006 too. Coincidentally or not, the American Express statement for this period is missing so we don't know what wonderful restaurants they visited on that trip.

The Iconoclast: Behind the Cowbird Curtain

Take the 2030 Transportation Survey

The Northwest Arkansas Regional Planning Commission, the transportation planning organization in Northwest Arkansas is currently updating its Long Range Transportation Plan. The draft Plan under development will create a vision for transportation improvements through the year 2030.

Your opinion is very important. Since transportation impacts everyone in the region, feedback from citizens is needed. Please take a moment to answer the following questions and share your suggestions about transportation here.

Transit Committee Looks For Money

The Morning News recently reported how an advisory board for Ozark Regional Transit is in serious need of funds.

Former Springdale Mayor Jerre Van Hoose is honorary chairman of the committee that calls itself Advocates for Public Transit.

Was the future of mass transit on anyone's mind when they decided $50 million in tax debt for a baseball stadium was a grand idea?

Perry's Presents

Perry Webb and Danny Dotson apparently thought nothing of approving the $2,538.83 check for gifts from Calvin Mitchell Leather in October 2008.

As if that wasn't enough, Webb and McFarland approved an additional $7,054.57 for more goodies from the same place just a month later.

And once again a month after that for a grand total of $14,059.99!

Perhaps they needed new monogrammed luggage for their many out of town escapades.

But hey, as long as the in-crowd had a Merry Christmas and someone else is footing the bill, who cares. Right?

Ballpark Debt Wasn't Necessary

The Chamber of Commerce graciously paid for former Springdale Mayor Jerre Van Hoose's airfare from the luxurious resort town Jackson Hole, Wyoming to Salt Lake City, Utah and back again. I hesitate to call it a kickback, but I probably wouldn't hesitate at eyebrow-raising freebie.

It is possible the Mayor later paid them back, although three years of bank deposits show nothing with Van Hoose as a depositor. I suppose it is even possible he too was a compensated volunteer earning 15% commission for Chamber membership sales like the Moore's & Mullikin's. Isn't it?

Someone at the Chamber penciled in "S.T. Initiative I" on the AmEx statement which could mean Springdale Tomorrow Initiative, but it appears Van Hoose was the only attendee.

Surely the trip didn't have anything to do with his rejection just a month earlier of an offer by a Dallas-based sports investor to privately bankroll Springdale's ballpark, thus derailing the Chamber's pet project and sparing the already overburdened taxpayers from taking on an additional $50 million in debt.

Of course the original news article is no longer available, but a snippet can be located on ballparkdigest.com.

It has been suggested that Van Hoose is married to the sister of the majority owner of the prime ballpark area real estate just waiting to be developed. That's not a conflict of interest, is it?

Gas Guzzler

The newspaper article in which Webb was quoted as saying, "I didn't know Fayetteville was paying. It's been a conscious decision that you just don't bring it up" regarding his attempt to get out of paying property taxes on the Chamber's vehicle has conveniently disappeared.

According to Washington County Assessment records, the Chamber has just one vehicle and while we can all agree a Yukon isn't best known for it's fuel efficiency, doesn't it seem a bit far-fetched it needs $120 in gas a day? That's what was spent at Family Shop 8 in Springdale on May 17, 2008 in two separate transactions. A week later, on the same page of the American Express bill, they spent another $116 at gas stations in three separate transactions on the same day. Who can tell anything for sure. This page also categorizes a payment to American Association of Notaries "TMeals".

$112 at Westide Sinclair and another $105 at Kum & Go.

Another $100 / $81.00 at Kum & Go

On this page of the AmEx bill we find $383.00 spent on gas. Was Webb filling up the rig in Russellville the same day he hosted himself to the baseball suite?

The Iconoclast: Springdale Cowbirds Have No Shame

The Morning Brew

Each Thursday morning the Springdale Chamber of Commerce chooses a dues paying business for an event they call The Morning Brew.

I find it fascinating that the hosting business foots the bill for "light breakfast refreshments" but each attendee is also asked to fork over $2 to the Chamber. A small price to pay for the newtorking opportunity and a cup o' Joe? Maybe.

But something tells me these people likely pay in cash. The Chamber probably doesn't bring a credit card machine with them and a $2 check seems kind of silly.

I wonder how many weeks it takes to save enough of these convenient little dollar bills for a trip to the Land of Sunshine?

Field of Schemes

I don't think it's a secret we think the Arvest Ballpark was a poor excuse for economic development not to mention the feeling that taxpayers were duped into paying for it. Two years later, a couple of driving ranges are the only proposals that have surfaced for the area.
Not so says Perry Webb "This area transformed from people raising chickens and a bunch of hillbillies to the forefront of the corporate world."

A bunch of hillbillies. Really?

There has been a lot of discussion all across the country about sports stadiums being touted as the key to economic development and yet study after study finds they cost far more than they return.

The New York Times recently reported that "deals that were used to persuade taxpayers to finance their construction have in many cases backfired..."

Dale Rubin, of Salem, Oregon is an attorney who specializes in public subsidy issues. He recently finished a brief for a public policy group in which his concluions of law were that municipal subsidies for sports stadiums are unconstitutional. He said 'Almost all state laws say that no public entity should be aiding private enterprise...'

Brad Humphreys, Assistant Professor of Economics at the University of Maryland says "on average, professional sports reduces inflation-adjusted income per person by a small but statistically significant amount, roughly $40 per person per year. That figure is for every person ... not just people who attended games. So professional sports do not form the basis of a viable local economic development program.

Here are a few more articles. The list goes on and on and on...

Chamber Leads Charge for Stadium

Chamber Spends $250,000 to Study Stadium Area

The Twisted Logic of Stadium Construction

Bloomberg Excited Over Money-Losing Project

Top 10 Dumbest Reasons to Build a Stadium

Ballpark Digest

How Much Should a Ballpark Cost

Webb Loves the Land of Sunshine

It's obvious Perry loves Florida and visits as often as possible using the uber convenient Chamber of Commerce American Express card.

July 2006 it was off to Palm Beach

Four Points by Sheraton

Miami Beach in March 2007

Orlando in March of 2008

The Breakers Hotel in Palm Beach - July 2008

Does the CEO collect a fat cat salary in addition to receiving volunteer commissions everyone is talking about? Or is it possible he was actually trying to bring new business to Springdale from the sandy shores of the coast?

InvestorPoint.com

Politickeror.com
Arkansas Times Blog

Supporting the Business Community

The Springdale Chamber of Commerce thought it was such a great idea to have a networking coffee on Thursday mornings that they planned theirs right on top of the NWA-Biz-Net group.

Way to show your support for a group that was doing something to strengthen your business community.

Who's Cable Bill is the Chamber Paying?

Every month the Chamber of Commerce's cable bill remains steadily between $39-$45.

Out of the blue, in January 2008 we see a sudden increase to $151.95.

Of interest are the two separate account numbers written in at the top of the check (we've partially blocked to protect the "innocent") in addition to Perry Webb's name written in the corner.

Hmmmmm