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CHAMBERGreater Hot Springs Chamber of Commerce

Growing Hot Springs

2014 Annual Report

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CHAMBERGreater Hot Springs Chamber of Commerce

Growing Hot Springs

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PARTNERSHIPHot Springs Metro PartnershipGrowing Hot Springs

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Dear Chamber Member and Partnership Investor:

2013 was a year of transition and 2014 was a year of implementation of change. We created membership growth and stability with the Chairman’s Circle and new sponsorship/recognition opportunities.

Our Government Affairs programming was enhanced with the implementation of One Voice, providing a member imposed agenda for regulation at the local, state, and federal levels through a facilitated process; our first-ever Washington Fly-in with 15 community leaders present; our local, state, and federal candidate forums, Good Morning Hot Springs which invited US Senate candidates as well as Arkansas Gubernatorial candidates to breakfast events with our members; and our CEO’s participation in the White House Economic Development Forum. These events made us a leader in the region concerning Government Affairs. Additionally, the Chamber Board took positions supporting the Export – Import Bank funding on the federal level and supporting the City of Hot Springs efforts to expand our water supply on the local level. This activity culminated in the fall with an aggressive Get Out The Vote campaign using both traditional letters as well as electronic messaging and social media. We also added a US Chamber of Commerce polling and data feature to our new Chamber website.

The fire that destroyed the historic Majestic Hotel in downtown Hot Springs spurred intense enthusiasm for an aggressive downtown development program that was designed by our Downtown Game Plan Task Force and led to the employment of a full time Downtown Development Director armed with a new strategic plan. A Benchmark Visit to Saratoga Springs, NY provided 14 community leaders with new ideas about

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investing in the future of downtown.

On the Economic Development front we completed 70 company visits/surveys, aided in the creation of more than 145 new jobs, $1.7 million in new capital investment, 6 real estate transactions in our downtown district, and a new emphasis on entrepreneurship.

Our dynamic, lean/mean Chamber-Partnership staff team, armed with new computer equipment and a new, combined website were able to stabilize membership growth, enhance sponsorships and recognition, and finish 2014 with a financial surplus that will begin a reserve fund going into 2015 and the future.

Lastly, we partnered with 50 For The Future to work with local officials to find a way to upgrade and enhance our voting process. Going forward, we anticipate membership growth, new job and new capital investment growth, bigger opportunities for recognition and participation for our member companies along with an increased involvement in those things that impact your ability to be profitable and to grow in the most dynamic community in the country.

Enthusiastically,

Bryan SmithAlliance Rubber HSCC Chair

Jim FramHSMP/HSCC CEO/President

Paul RiserRiser Ford HSMP Chair

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Programs/EventsAnnual Banquet - This recognition event is presented to thank and recognize various volunteers of The Chamber and to award individuals, organizations and businesses that have made outstanding contributions and supported our community during the previous year. This year we raised participation and revenue by 8.48%.

Flavor of the Park - This event is a showcase of more than 20 food establishments, caterers and other entertainment businesses, allowing hundreds of people to sample menu items. For the 6th Annual Flavor of the Park we increased revenue by 7.8%.

Business After Hours - These monthly networking events are hosted by Chamber investors with the intent to provide positive exposure for the host business. This casual networking experience is designed for business representatives to meet other business leaders and community members. We have two dates still available for 2015 and are starting to sell 2016 dates.

Business Fest - Business Fest is a community showcase for the Hot Springs Region’s businesses. It is designed to increase local supplier/product awareness, assist in community messaging, showcase employment opportunities and facilitate senior-level business relationship building. This year we added the G60 Business Pitch Contest. It was a huge success as well as the over all event revenue increased by 10.35%.

Ice On Ice - The holiday season’s premiere event offers an opportunity to win a ½ carat diamond. Enjoy appetizers, entertainment, and the signature drink of the evening. Also part of the proceeds go to a specific Garland County non-profit. This year the beneficiary was Project Hope Food Bank. We are increased Ice on Ice by 3.8%.

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AR Fall Golf Classic - This year was the inaugural Arkansas Fall Golf Classic benefiting Arkansas School for Mathematics, Sciences and the Arts and hosted by the Greater Hot Springs Chamber of Commerce.

Board of Advisors - Board of Advisor member companies have demonstrated a strong interest in becoming involved with the Chamber in a more significant way. These members are recognized with their logo displayed on our lobby TV, Website homepage, specific Board of Advisors page, and Monday Morning Coffee.

Staff Benchmarking Trip - 2014 was the first Greater Hot Springs Chamber benchmarking trip. The entire staff traveled to Northeast AR to shadow a respective Chamber.

Chairman’s Circle - The Chairman’s Circle is a membership recruitment club within The Chamber where its qualifying members are incentivized to recruit and actively engage new investors into the Greater Hot Springs Chamber of Commerce. The Chairman’s Circle has resulted in over $10,000 new members dues.

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Government AffairsOne Voice Agenda - This program established a local, state and federal legislative agenda for Hot Springs and the region. Issues identified and discussed through appointed task forces reported at a meeting where all members were invited to participate. The issues were evaluated by the assembled group through a facilitated process and then sent to all local, state and federal delegations.

DC Fly-In - The Greater Hot Springs Chamber of Commerce took a delegation of 15 business leaders to Washington D.C. May 6-8, 2014. The purpose of the trip was to provide information to the Arkansas Congressional delegation on issues affecting the business climate in Hot Springs and Garland County.

Good Morning Hot Springs - Good Morning Hot Springs is a breakfast/speaker series for the business community. During the 2014 year the Chamber hosted gubernatorial candidates Mike Ross and Asa Hutchinson.

The Legislative Update - is a daily email blast sent to only interested parties when the state legislation is in session. It recaps the daily meetings, bills and both house sessions.

Conversation with a Candidate - The Greater Hot Springs Chamber hosted four Conversation with a Candidate events during 2014. It is a non formal series where current political candidates and potential candidates can speak with the Hot Springs/Garland County business community and public. The Chamber was happy to welcome Senator Mark Pryor, 4th Congressional Representative candidates, James Lee Witt and State Representative Bruce Westerman, moreover all three of the Garland County Sheriff Candidates, Fred Hawthorn, Rodney Neighbors, and Mike McCormick.

Highways Commissioners Dinner - This appreciation dinner is an annual event that has been hosted by The Chamber since 1977. At this event business and community leaders come together to personally thank each of the Highway Commissioners for the work they do to make our road system better in the Hot Springs region and around the state. Due to increased sponsorships this year we were able to increase revenue by 54.65%.

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Education

Oaklawn Scholarship Foundation - The Oaklawn Foundation was established in 2005 as a part of the Community Benefits program promised during a campaign to allow electronic games of skill at Oaklawn Jockey Club. The fund was seeded in 2006 with an initial gift of $1 million from the Charles Cella family. The ongoing funding from Oaklawn is based on a set formula but is totally voluntary. The Oaklawn Foundation Scholarship was able to award 103 scholarships for the 2013 - 2014 year. This is a 157% increase over the number of scholarships from a previous high of 40 scholarships.

Academic Banquet- is an annual event that is held to honor the top 5% of graduating classes from the counties seven (7) school districts as well as Arkansas School for Mathematics, Sciences and the Arts. This annual event was started in 1986 by Ray Owen, Jr. while he was on the Education Committee for the Hot Springs Chamber of Commerce and the tradition has continued. This year there were 51 students in attendance to personally receive their awards and recognition.

National Park Community College Presidential Candidate Search - Once it was announced that Dr. Sally Carder would be retiring the NPCC hiring committee began the long process of compiling candidates for the position Once they narrowed their search down to four possibilities, they held an open to the public forum at the Chamber.

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Chamber Investor Demographics

73

302

231

169

48

4227 22

Chamber Investor Number of Employees

Zero 1 to 3 4 to 9 10 to 25 26 to 49 50 to 99 100 to 199 200+

0 50 100 150 200 250

Less Than 1 Year

1 to 2 Years

3 to 5 Years

6 to 9 Years

10 to 19 Years

20 to 49 Years

50+

Number of Years Chamber Investors Have Been Members

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Communications

Monday Morning Coffee - is our weekly Chamber e-newsletter that contains stories from the previous week, upcoming Chamber events, and new Chamber investors. Only current members whom we have permission to email receive the publication. Over the past year we have increased readership by 25%.

Sunday Post - A weekly e-newsletter with city, county and state economic development news written by the Chamber/Partnership CEO & President Jim Fram. Distribution of the Sunday Post has increased by 17.5% over last year. Distribution is by invitation only.

Downtown Update - A new e-newsletter introduced during the summer that focuses on all things downtown i.e. building transactions, maintenance updates, and comparisons to other communities. Currently the Downtown Update is sent to over 150 interested parties with an average open rate of 62.4%.

Chamber E-Commerce - With a redesign and new approach the Chamber E-Commerce (formally Hot Information Springs Your Way) has become the member B2B tool. This year we increased E-Commerce sales by 58% and have an average open rate of 27%, a 16% increase over the 2013 open rate.

www.growinghotsprings.com - At the beginning of the year we started working on a new Website for the Chamber and Partnership. To help cut down on confusion we created a Splash Page where you can either go to the new Chamber site or the new Partnership site. The site went live two days before Labor Day weekend.

With the new Website, we partnered with Weblink International for our site banner sales. Currently we have 13 members taking advantage of this advertising opportunity.

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Professional Development

Megan Greeson and Cole McCaskill attended one of 28 Basic courses accredited by the International Economic Development Council (IEDC) at UALR in Little Rock. The course is designed as a basic overview of the principles and practices of community economic development. Completion of the course is a qualifier for one or a combination of at least six programs of professional advancement.

Megan Greeson attended the Business Retention and Expansion course in Indianapolis, Indiana. This course focused on designing and implementing a business retention and expansion (BR&E) program to address the needs of existing local business.

Jim Fram has been awarded re-certification by the International Economic Development Council (IEDC). CEcD recertification, required every three years, was awarded to Fram who met demanding requirements for continuing education and service to the profession.

Jim Fram, Megan Greeson and Cole McCaskill attended the Arkansas Economic Developers Annual Conference. This event is the Economic Development annual opportunity for members to get together for professional development, education and networking.

Cole McCaskill attended the Entrepreneurial and Small Business Development Strategies, accredited by International Economc Development Council (IEDC). This multi-faceted, course explored the core aspects of entrepreneurial and small business development including value-add partnerships, technical assistance programs, financing, business incubation and more.

Cole McCaskill attended the Funding Economic Development & Revitalization through Brownfields Workshop. It was a seven hour technical assistance course sponsored by the EPA and Kansas State University that taught participants about the grant funding opportunities available for Brownfields from EPA, USDA, and SBA federal agencies.

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Betsy Atkins attended year one of a four year program with the Institute for Organizational Management. It is the professional development program of the U.S. Chamber of Commerce Foundation. Institute is designed to en-hance individual performance, elevate professional standards, and recognize association, chamber of commerce, and other nonprofit professionals who demonstrate the knowledge essential to the practice of nonprofit manage-ment.

Betsy Atkins, Lisa Engebretson and Lacey Garner all attended the 2014 MAKO conference in Ridgedale, MO. MAKO is organized to encourage the highest professional standards for the men and women in Chamber of Commerce Management. MAKO, which represents Chamber of Commerce Executives in the states of Missouri, Arkansas, Kansas and Oklahoma, was formed in 2011. The annual conference is developed with the premise to advance personal and professional development and create close unity within the region.

Jim Fram attended the Association of Chamber of Commerce Executive (ACCE) Conference. This year ACCE marked 100 years of service to chamber leaders, and the 2014 convention in Cincinnati – the city where ACCE was founded – was the highlight of the year’s festivities. ACCE is the chamber profession’s event of the year, featuring outstanding education and stimulating networking with the best people in the chamber world.

Jim Fram, Megan Greeson and Cole McCaskill attended the International Economic Development Council Annual Conference in Forth Worth TX, a professional development conference with Keynote speeches, expert panels, round-tables, and workshops.

Lisa Engebretson attended the annual WebLink Summit. This conference is a unique marketing, technology and social media conference designed to help program users learn how to use technology to market their organization, manage more effectively and connect their members.

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Programs/Events

Junior Achievement - The Hot Springs Metro Partnership invested $31,500 in Junior Achievement to start the program in Garland County. Junior Achievement programs aid students in proactively managing their finances, becoming entrepreneurs, and developing skills that will be recognized and valuable in the global workforce. Each program gives young people the knowledge and skills they need to earn their financial success, plan for their future, and make smart academic and economic choices. Students are given hands-on experience so they will be prepared for the workforce and are encouraged to understand the value of staying in school.

Aerospace Breakfast - is a quarterly meeting hosted by the Hot Springs Metro Partnership and attended by professionals from each of the eight local aerospace companies, Arkansas Economic Development Commission, National Park Community College, Hot Springs Memorial Field Airport and the Metro Partnership staff. Attendees have the opportunity to discuss statewide events, training, workforce issues, new technology and individual company updates.

Business Retention & Expansion Visits – The BR&E manager conducts scheduled visits with local plants and locally owned companies as often as needed, sometimes 2-3 times a year. The BR&E visits are conducted to build strong relationships with local managers, to collect important data about the needs, future direction and the overall health of the company, and also to express the community’s appreciation for the company’s contributions.

White House Business Council Forum on Economic Development - Jim Fram was selected, from a small group of Economic Development professionals from across the country, to be invited to participate in a “White House Business Council Forum on Economic Development” hosted by the White House in August. While in Washington, he also met with other Board members of the International Economic Development Council (IEDC) regarding recently passed workforce funding legislation that was awaiting the President’s signature.

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Downtown Development

This year saw a renewed focus on Downtown Revitalization from the Chamber. After the oldest portion of the Historic Majestic Hotel burned in February, Chamber and Partnership leadership organized a Downtown Game Plan Task force of community leaders with the goal of preventing another similar tragedy and realigning the goals for downtown development. The Task Force held three public meetings that heard the input from downtown stakeholders and leaders from other communities. The task force met privately several times per week over the course of nine weeks to review the past decades’ work towards downtown development, to discuss new ideas, and to validate and amend the Partnership’s Strategic Plan for Downtown Development.

The Downtown Game Plan Task Force released their official recommendation in a press conference on June 4th. The task force validated the Partnership’s Strategic Plan and added a series of immediate goals, one year goals, and stretch goals. The first immediate goal was for the Partnership to hire a full time Downtown Development Director. The consensus among the task force members was that the plans would not be advanced unless someone was working on them full time. The task force’s full report can be downloaded at http://www.cityhs.net/517/Downtown-Game-Plan-Task-Force.

Cole McCaskill filled the downtown development position in early August and has since managed all aspects of the downtown strategic plan for economic development. Cole has been working with potential new downtown investors, assisting existing property owners with improvement projects, speaking to civic groups about the plans for downtown, and working to advance the strategies of the plan to expedite redevelopment of downtown properties.

The Partnership sponsored “Dollars and Sense of Building Rehabilitation & Downtown Revitalization” in Hot Springs. The eight hour workshop organized by the Arkansas Historical Preservation Alliance drew over 160 attendees that heard 11 presentations relating to the preservation tools and resources that are available.

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The Chamber embarked on its first Annual Downtown Benchmarking visit this year to Saratoga Springs, NY. Thirteen community leaders spent two days in Saratoga being shown around by their community leaders and learned about their successful redevelopment efforts.

Finally, the Partnership and West Central Arkansas Planning & Development were awarded a $250,000 grant to devise a Comprehensive Downtown Redevelopment Plan for the Historic Downtown Corridor. Economic Development consulting firms nationwide are currently submitting proposals to help us develop this plan. A winner will be chosen in January 2015, work will begin in March and the process will be complete in July 2015.

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Jan. - Dec. 2014

Jan. - Dec. 2013

% Change

Income Incomes County Contract 75,000.00 75,000.00 0.0% City Contract 125,000.00 75,000.00 66.67% Relocation Program Income 12,500.00 12,500.00 0.0% Rent Income 205,235.42 201,211.23 2.0% Partners 213,075.00 195,271.07 9.12% Total Income 630,810.42 558,982.30 12.85%

Expenses

Administrative 318,840.52 244,336.00 30.49% Operating 133,245.00 146,014.00 -8.75% Technology Building 575,037.52 512,706.00 12.16%

Total Expenses 575,037.52 512,706.00 12.16%

* Annual audit performed - this financial statement for current year reflects unaudited financial reporting

Partnership 2014 Consolidated Financial Reports

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Chamber 2014 Consolidated Financial ReportsJan. - Dec.

2014Jan. - Dec.

2013%

ChangeIncome Revenues Administrative Income 283,549.00 278,424.00 1.84% Communications Income 16,534.00 7,100.00 132.89% Investor Membership Income Investor Renewals 308,253.00 299.236.85 3.01% New Members 31,817.00 25,083.47 26.84% Total Investor Member Income 3400,070.00 324,320.32 4.86% Special Events Income 103,698.00 97,035.74 6.87%Total Income 743,851.81 706,880.06 5.23%

Expenses Administrative Expenses 498,682.00 491,237.00 1.52% Conferences/Dues/Education 16,977.42 22,555.05 -24.73% Operations 61,607.63 68,657.55 -10.27% Building Operations 71,475.05 97,736.66 -26.87% Communication 16,045.28 6,047.67 165.31% Special Events 49,775.53 46,795.27 6.37%Total Expenses 714,562.91 733,029.20 6.37%

* Annual audit performed - this financial statement for current year reflects unaudited financial reporting

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Bryan Smith ChairmanAlliance Rubber

Forrest SpicherFirst Vice ChairmanBancorp South

Bobby Geiger Second Vice ChairmanOakalwn Racing & Gaming

Mike DuganPublic Relations Division ChairMerritte Wholesale

Don GoochFinance/OperationsArvest Bank

Kurt SchatzlGovernment AffairsEmbassy Suites

Gary TroutmanMember Services Division ChairSentinel Record

Paul RiserHSMP ChairmanRiser Ford Lincoln

Mary CurreyEventsTrademark Real Estate

Steve TrustyImmediate Past ChairSimmons Bank

Executive Committee

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Greg AsbellEntergy

Latt BachelorRelyance Bank

Brian BellNational Park Medical Center

Mayor Ruth CarneyHot Springs Mayor

Mark CurryABI Insurance

Joyce CraftHot Springs School District

County Judge Rick DavisGarland County Judge

Keeley DeSalvoPancake Shop/Savory Pantry

Larry DeWittComfort Inn

Mike FergusonUS Bank

Greg GreesonGreeson, Inc.

Scott HambySigma Supply

Neal HarringtonExpress Employment Professionals

Brian HillHill & Cox Construction

Steve Honeycutt Magic Springs Water & Theme Park

Dr. John HoganNational Park Community College

Mike LiptonArkansas Best Insurance

Bob MartoranaArlington Hotel

Dan MessersmithDuncan & Messersmith CPA

James MontgomeryB&F Engineering

Jeff Runyon Merritt Wholesale

Susan SpicherSpecialties Clinics for CHI St. Vincent - Hot Springs

Chad TilleryAllen Tillery Auto Center

Landon TrustyTrusty Insurance Agency

State Representative John VinesWood, Smith, Schnipper, Clay & Vines

Libby VinesBancorpSouth

Les WarrenHot Springs Title Company

David WatkinsHot Springs City Manager

Todd WoerpelColdwell Banker

David YorkRegions Bank

Board of Directors

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Board of DirectorsSteve ArrisonVisit Hot Springs

Greg AsbellEntergy Tom ButlerCMT, Inc

Mayor Ruth CarneyHot Springs Mayor

State Senator Alan ClarkClarks Building and Decorating

State Representative Bruce Cozart

County Judge Rick DavisGarland County Judge

Steve DeSalvoIfrah Financial Services, Inc.

Mike FergusonUS Bank

Dan GliddenSmith’s Consumer Products, Inc.

Don GoochArvest Bank

Stan GriseMunro & Company

Brian HillHill & Cox Corporation

Dr. John HoganNational Park Community College

Dale HornHorn’s Outdoor

Jerry MabryNational Park Medical Center

Dan Messersmith Duncan, Messersmith & Associates

James MontgomeryB & F Engineering, Inc.

Dwayne PrattWest Central Arkansas Planning and Development District

Paul RiserChairmanRiser Ford Lincoln Brian HillVice ChairmanHill & Cox Corporation

Major General Tom Arwood (Ret)SecretaryHot Springs Village

Todd WoerpelTreasurerColdwell Banker RPM

Jim FramPresident/CEOHot Springs Metro Partnership Latt BachelorPast ChairmanRelyance Bank

Executive Committee

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StaffJim Fram, CCE, CEcD, FMPresident & CEO

Betsy Atkins Chamber Vice President

Lisa Engebretson, IOMDirector of Finance and Operations

Lacey GarnerImage Manager

Megan GreesonEconomic Development Manager

Rita KollerExecutive Assistant to President/CEO

Cole McCaskill Downtown Development Director

Misti RamosDirector of Customer Service

Sara DavidsonDirector of Customer Service

State Senator Bill Sample

John SeligLEGIS

Bryan SmithAlliance Rubber Company

Forrest SpicherBancorp South

Steve TrustySimmons Bank

David TwiggsHot Springs Village

State Representative John VinesWood, Smith, Schnipper, Clay & Vines

David WatkinsHot Springs City Manager

State Representative Bruce WestermanMid-South Engineering