story by Michael Tilley
mtilley@thecitywire.com
Springdale-based Career Academy of Hair Design is expanding into Fort Smith thanks in part to an estimated $1.35 million renovation by FSM Redevelopment Partners of property near the 40-acre site that was once a crumbling Phoenix Village Mall.
The property is located just south across Phoenix Avenue from the hospital service center operated by Community Health Systems. FSM Redevelopment bought the crumbling former mall in early 2009 and has invested about $15 million to build out office space, an exhibition center – now used for the hospital service center – and new retail space. A Sykes call center and several medical offices are also located at the renovated property. Lance Beaty, general manager of FSM, has said the 40 acres is now home to about 1,200 jobs with an estimated annual payroll of more than $30 million.
Beaty, who is also owner of Beaty Capital, said the newest work includes demolishing 16,000-square feet of an existing 26,000-square foot building for an “extensive” remodel of the remaining space. The work includes all new electrical, mechanical and plumbing systems, as well as raising the ceiling 4 feet. Work on this space, which will house the Academy, is estimated to cost $1.2 million and should be complete by June.
An adjacent space is being prepped for Cashfish Motor & Pawn, a buy here, pay here used car dealer. That work is estimated to cost $150,000, and should be complete by May. Cashfish is also based in Springdale.
Jim Butenschoen, owner of Career Academy, said the Fort Smith operation could initially employ up to 6 full-time, with expectations for 50 students in the first year. The company now employs 32 in Northwest Arkansas, with schools located in Fayetteville, Rogers, Siloam Springs and Springdale.
He bought the business in 2006 with no experience in the field. His background was corporate work, including a stint with then Little Rock-based Systematics. The academy had 45 students in 2006, and has grown to 350 in the most recent round of classes.
“I didn’t know anything about cosmetology before I bought the schools. ... Then I started looking at the numbers and thought, “My gosh, there is a lot of potential here,” Butenschoen said.
About 140 of the Northwest Arkansas students are from area high schools. He said 18 school districts in Northwest Arkansas work with Academy to provide the career training for high school students.
Tuition for the primary 11-month program is $16,000, with most financed by Pell Grants and loans. Students attend the course 7 hours a day, Tuesday through Saturday. Butenschoen said his school is one of the few to require classes on Saturday.
“Saturday is the prime money making day when they (students) get out, so they need to learn how to work on Saturday,” he said.
Academy also has an esthetics program that runs 4 months with a $7,800 tuition. A manicure and pedicure program is also a 4-month course with a $7,800 tuition.
Butenschoen said a student with a good business mind can earn $50,000 a year after three years, and possibly more if “they are really a go-getter.” He said the class includes “a lot” of focus on teaching the business side of cosmetology. Being “salon ready,” according to Butenschoen, means a student can perform the work, and understand finances.
“One of the things we really stress is that our students come out of our schools salon ready – truly ready to hit the ground running,” he said.
Because the Academy seeks real customers on which the students train, Butenschoen said being across the street from so many jobs “certainly registered with me” in deciding on the location. Hair cuts for men and women are just $7, Butenschoen said.
“The customer gets a good deal ... and the student gets an incredible amount of experience,” he said, adding that instructors always watching “to make sure they are doing a good job.”