On a trip to Hot Springs last week, I picked up a copy of the Sentinel-Record, that city's daily newspaper, and read the two stories atop the front page. One noted that monthly receipts of the city's 1-cent sales tax have been better than the corresponding months in 2015 for six consecutive months. July 2016 collections were up 3.94 percent from July 2015. For the first seven months of the year, collections were up 6.46 percent from the first seven months of 2015.
The other story was about two Hot Springs natives, Jen and Justin Schalow, who moved back to the Spa City to open the Craft Beer Cellar. The retail shop and taproom opened Saturday on Ouachita Avenue. Justin Schalow's older sister opened the first Craft Beer Cellar in Boston after attending Harvard. The franchise operation has now grown to 26 locations across the country.
"We wanted to come back to Hot Springs," Jen Schalow said. "We grew up here." When space downtown became available, the couple rented a building and began renovations in February. One attraction of the building is that there's street parking in the front along with a parking lot in the back. Jen Schalow said she has "tried to get beer from every brewery in the state. There are a lot, and we're working really hard to get them all. A couple of them don't even distribute beer, but we've been twisting their arms."
Justin Schalow added: "We want this to be the go-to place for craft beer. Come and get in a conversation about beer. You can learn something new or maybe teach us something new. We expect there will be people coming in who know more than we do about some beers, and we're willing to learn."
Steven Mross wrote in the Sentinel-Record: "Unlike dimly lit bars with lots of smoke and loud music, Jen Schalow said their business will offer a 'more intimate, relaxed atmosphere' where patrons can come in, choose from more than 400 hand-picked bottled or canned beers, including 24 drafts on tap, and sit down, read a book, log in on their laptops ... or just chat with the other patrons."
On the surface, it wouldn't appear that these two newspaper stories are related. But I believe they are. Here's why: For years, Hot Springs seemed to have lost its way as a city, failing to capitalize on historic treasures downtown and the other attributes that make it unique. That has changed in recent years, and these stories are evidence of that. One of the pioneers of what I call the "new Hot Springs" is Rose Schweikhart, who began thinking about using mineral water in craft beers soon after moving from Springfield, Ill., in 2011. The Superior Bathhouse, which opened in 1916, is the smallest of the eight buildings on Bathhouse Row and is the closest to the Arlington Hotel. The Superior had been empty since 1983, but Schweikhart was intrigued with the building because it would give her access to water from the springs. Built by L.C. Young and Robert Proctor, the Superior had 11,000 square feet and cost $68,000 to construct. The National Park Service renovated the building, and Josie Fernandez, the Hot Springs National Park superintendent, was looking for a business to lease the facility. Each time I walk down Bathhouse Row, Schweikhart's Superior Bathhouse Brewery appears to be filled with customers. Schweikhart took a chance, and it has paid off.
"I could have built a brewery in an industrial park out of metal," she says. "I chose a historic building in a national park."
On the other side of Central Avenue, restoration work continues on the five-story Thompson Building, constructed in 1913 and designed by famed architect George Mann. It is being transformed into a boutique hotel that will supply downtown with badly needed upscale rooms. Architects Bob Kempkes and Anthony Taylor joined forces with investment banker Robert Zunick to purchase both the Thompson Building and the 1904 Dugan-Stuart Building in June 2014.
"Our city is set for a renaissance," Kenneth Wheatley told this newspaper last year. "We haven't done a lot on the downtown upper floors in a long time. The bottom floors are rented but not restored. Everybody wants to renovate a building, but they don't realize the expense. Then the question on the other end is, 'Will it be an investment that will pay off for what you've done?' There's a demand for better hotel rooms. I think this may be the catalyst for future growth."
Economic development in the 21st century is no longer just about attracting industrial plants. It's about attracting talented young people like Rose Schweikhart, Jen Schalow and Justin Schalow.
Had you told me a decade ago that a craft brewing scene would be important to economic development, I would have looked at you with a blank stare. Now, I believe that it's a piece of the quality-of-life puzzle. Talented people who could live anywhere look for amenities such as walking trails, biking trails, fine dining, live entertainment and urban lofts within walking distance of where they work. In that respect, downtown Hot Springs remains an untapped gold mine.
The same things that will appeal to upscale tourists will appeal to entrepreneurs. After decades of sitting around reminiscing about the "good ol' days" before Gov. Winthrop Rockefeller shut down casino gambling in the late 1960s, the city's business and civic leaders finally became serious about attracting such entrepreneurs. The sales tax receipts and number of new businesses downtown reflect their success. Hot Springs is becoming "hot" again.
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Freelance columnist Rex Nelson is the director of corporate community relations for Simmons First National Corp. He's also the author of the Southern Fried blog at rexnelsonsouthernfried.com.
Editorial on 10/05/2016