Invest: Tampa Bay

Tampa Bay 2020 An in-depth review of the key issues facing the cities of Tampa, St. Petersburg and Clearwater, featuring the exclusive insights of prominent industry leaders

Contents: 49 Interview: Douglas Wright, Operations & Finance Partner, Holland & Knight 51 Interview: Hala Sandridge, Partner, Buchanan Ingersoll & Rooney PC 52 Interview: Bill Schifino, Tampa Office Managing Shareholder, Gunster 53 Interview: Alan Higbee, Managing Partner, Shutts & Bowen 55 Market voices: Advantages

57

Real Estate:

58 Building value: The temperature of the Tampa Bay real estate market is hot and rising, but COVID-19 will likely be a nearterm disruptor 59 Interview: Leroy Moore, COO, Tampa Housing Authority

7

Economy:

8 Economy in numbers 10 Powerhouse: Looming concerns about a potential national economic downturn are doing little to faze local players 11 Interview: Sandra Murman, Commissioner, Hillsborough County 12 Interview: Craig Richard, President & CEO, Tampa Bay Economic Development Council 16 Interview: Lynda Remund, President & CEO, Tampa Downtown Partnership 18 Roundtable: What is needed to sustain growth?

Kelly Flannery, President & CEO, South Tampa Chamber of Commerce; Rick Homans, CEO, Tampa Bay Partnership; Courtney Orr, Ybor Development Manager, Ybor City Development Corporation; Ruby Wake, Vice President, Tampa Bay Latin Chamber of Commerce 23 Interview: John Flanagan, CEO, CareerSource Tampa Bay 24 Market voices: St. Petersburg 4 | Invest: Tampa Bay 2020 | CONTENTS

25 Interview: Kenneth Welch, Commissioner, Pinellas County 30 Roundtable: Female leaders in the Bay Sandra Bradbury, Mayor, City of Pinellas Park; Ann Kulig, Executive Director, Westshore Alliance; Linda Olson, President & CEO, Tampa Bay Wave; Jill St.Thomas, CRO & Executive Director, Tampa Bay Tech

33

City of Clearwater:

61 Market voices: Transformation 63 Interview: Nicholas Haines, CEO, Bromley Companies 66 Roundtable: Commercial Real Estate Scott Dobbins, Founder and Principal, Hybridge Commercial Real Estate ; Jonathan Levy, Co-Founder & Managing Partner, Redstone Investments; Larry Richey, Managing Principal and Florida Market Leader, Cushman & Wakefield; Christopher Travis, Sales Manager, Marcus & Millichap

34 Flourishing: The city of Clearwater is fostering an environment that is good for business, from established companies to startups

68 Interview: Mark Metheny, Tampa Division President, Lennar

35 Interview: Frank Hibbard, Mayor-elect, City of Clearwater

69 Interview: Gary Godsey, Managing Director, JLL

38 Market voices: Developing Clearwater 43 Interview: Scott Perry, CEO, AmeriLife

47

Legal:

48 Evolution: The legal landscape is evolving, with new laws on the books related to texting and taxes, and marijuana still front and center

71

Construction & Infrastructure:

72 Strong fundamentals: As cranes dot the skyline, all signs point to strong and continuous growth, although COVID-19 has raised the specter of uncertainty 74 Interview: Todd Fultz, Managing Director – Central Florida, Plaza Construction

78 Market voices: Growth factors 79 Demanding times: Tampa Bay is battling to strengthen its water and electricity services in the face of old obstacles 80 Interview: Nancy Tower, President & CEO, Tampa Electric 81 Interview: T.J. Szelistowski, President, Peoples Gas 82 Interview: Catherine Stempien, President, Duke Energy Florida

85

Transportation & Logistics:

86 Hard at work: The region is taking measures to alleviate congestion through alternative transportation options 87 Interview: David Gwynn, District Seven Secretary, Florida Department of Transportation 88 Interview: Joe Waggoner, CEO & Executive Director, Tampa Hillsborough Expressway Authority 91 Interview: Paul Anderson, CEO, Port Tampa Bay 92 Interview: Beth Alden, Executive Director, Hillsborough Metropolitan Planning for Transportation 93 Interview: David Green, Executive Director, Tampa Bay Area Regional Transit Authority

95

Banking & Finance:

96 Bankable: A tax-friendly landscape adds to an already attractive environment for the region’s financial sector 97 Interview: Gregory Kadet, Managing Director, UBS Global Wealth Management U.S. 100 Interview: Jorge Gonzalez, President & CEO, City National Bank of Florida 104 Interview: Jim Daly, Regional President, BB&T (now Truist) 105 Interview: Tim Schar, Tampa Market President, SunTrust (now Truist) 107 Interview: Rita Lowman, President, Pilot Bank 108 Roundtable: Key attractions Marc Blumenthal, CEO, Florida Funders; Tyler Iller, Senior Vice President & Director of Client Advisory, Florida First American Bank ; Travis Jennings, CEO & Founder, Finance Cape; John McDonald, Senior Managing Director, Hyde Park Capital

118 Hub attraction: Tampa Bay has made strides to become a medical hub with strong research focus, but the region lags behind other similar centers 119 Interview: John Couris, CEO & President, Tampa General Hospital 122 Interview: Mike Schultz, President & CEO - West Florida Division, AdventHealth 124 Interview: Phillip Dingle, Managing Partner, HealthEdge Investment Partners 126 Roundtable: Care concerns Ravi Chari, MD, President, HCA West Florida; Jeff Johnson, State Director, AARP; Brad Prechtl, CEO, Florida Cancer Specialists

131

Education:

132 Rise up: Tampa Bay’s educational institutions have worked to improve in every area.

More is still needed 133 Interview: Steven Currall, President, University of South Florida

114 Market voices: Good advice

137 Interview: Randy Avent, President, Florida Polytechnic University

115 Interview: David Call, Florida Regional President, Fifth Third Bank

138 Interview: Robert Bishop, Dean, University of South Florida College of Engineering

117

Healthcare:

141

Tourism, Arts & Culture:

142 Where to?: Tourism in Tampa Bay has been on a record run, although the COVID-19 pandemic is putting a cloud over the sector.

143 Interview: Santiago Corrada, President & CEO, Visit Tampa Bay 144 Interview: Tim Jarrett, General Manager/Partner, The Tampa Club/BNG Hospitality 146 Market voices: Destinations 148 Interview: Roger Germann, President & CEO, The Florida Aquarium 151 Interview: Brian Kornfeld, President & CEO, Synapse 154 Roundtable: Tampa Bay Sports Josh Bullock, President, Tampa Bay Vipers; Brian Ford, COO, Tampa Bay Buccaneers; Matt Silverman, President, Tampa Bay Rays www.capitalanalyticsassociates.com

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EDITORIAL NOTE

Tampa Bay 2020

From the publisher:

ISBN 978-0-9988966-1-8

April 2020

President: Abby Melone Chief Financial Officer: Albert Lindenberg

Dear readers,

Regional Director: Jack Miller

By now, it is apparent that the COVID-19 pandemic that has raced around the globe from the beginning of January 2020, rupturing world markets, will have a lingering impact on our lives and businesses. At the time of printing Invest: Tampa Bay, countries around the world, including the United States, were at various stages of implementing measures to contain and mitigate the pandemic, beginning with social distancing efforts and other social curbs, and in some cases culminating in the imposition of national states of emergency.

In the United States, which became a focal point for the pandemic in March 2020, measures include a $2.2 trillion economic rescue package agreed by Congress in late March to help businesses big and small, as well as individuals, to cope with the dramatic economic fallout as the virus spread.

Many of the interviews in Invest: Tampa Bay were conducted prior to the pandemic’s outbreak, but we have endeavored to reflect recent events throughout our editorial. Those interviewees who were able to comment on the potential long-term impact agree that the U.S. economy remains resilient, and most are optimistic that any downturn will be relatively short-lived. The economy’s underlying strength, many business leaders believe, will drive greater growth over the long term.

Capital Analytics shares this optimism. Especially at this difficult time, Capital Analytics remains steadfast in our purpose: to deliver in-depth business intelligence through its print and digital platforms. Now more than ever, information is not only necessary, it is vital.

Senior Editor: Mario Di Simine Art Director: Nuno Caldeira Regional Editor: Max Crampton-Thomas Writers: Sean O’Toole; Sara Warden Contributing Writer: Felipe Rivas Editors: Tomás Sarmiento; Esteban Pagés Intern: Sabrina Bocaranda Invest: Tampa Bay is published once a year by Capital Analytics Associates, LLC. For all editorial and advertising questions, please e-mail: contact@capitalaa.com To order a copy of Invest: Tampa Bay 2020, please e-mail: contact@capitalaa.com All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, without the express written consent of the publisher, Capital Analytics Associates, LLC. Whilst every effort has been made to ensure the accuracy of the information contained in this book, the authors and publisher accept no responsibility for any errors it may contain, or for any loss, financial or otherwise, sustained by any person using this publication.

Capital Analytics Associates, LLC accepts no responsibility for the return of unsolicited manuscripts and/or photographs, and assumes no liability for products and services advertised herein.

Capital Analytics Associates, LLC reserves the right to edit, rewrite, or refuse material.

Sincerely, Abby Melone

Photo Credits: Contents: Pg. 4 – Tampa Hillsborough Expressway Authority Pg. 5 – Plan Hillsborough Economy: Pg. 7 – Visit Tampa Bay; City of Pinellas Park Pg. 10 – Visit Tampa Bay Pg. 12 – St. Pete Innovation District Pg. 14 – St. Petersburg EDC Pg. 20 – City of Clearwater Pg. 22 – Florida Polytechnic University Pg. 28 – Visit Tampa Bay

Pg. 48 – City of Pinellas Park Pg. 56 – St. Petersburg EDC Real Estate: Pg. 57 – Blake Yeager Photography Pg. 58 – Bromley Companies Pg. 64 – Cushman & Wakefield Construction & Infrastructure: Pg. 71 – Tampa Hillsborough Expressway Authority; Universal Engineering Sciences Pg. 72 – Tampa Hillsborough Expressway Authority

City of Clearwater: Pg. 33, 34, 36, 40, 44 – City of Clearwater;

Pg. 77, 79 – Universal Engineering

Legal: Pg. 47 – Plan Hillsborough; Baker Mckenzie

Pg. 80 – Heidt Design

Sciences Pg. 82, 84 – Duke Energy

6 | Invest: Tampa Bay 2020 | CONTENTS

Transportation & Logistics: Pg. 85 – Forward Pinellas; Florida Department of Transportation Pg. 86 – Forward Pinellas Pg. 92 – Tampa Hillsborough Expressway Authority Banking & Finance: Pg. 95 – Tampa Hillsborough Expressway Authority; City of Pinellas Park Pg. 96 – Visit Tampa Bay Pg. 99 – ServisFirst Bank Pg. 100 – Pilot Bank Pg. 102 – ServisFirst Bank Pg. 104 – Central Bank Pg. 106, 111, 112 – Pilot Bank Healthcare: Pg. 117 – Tampa General Hospital; Tampa General Hospital

Pg. 118 – Tampa General Hospital Pg. 123 – AdventHealth Pg. 126, 128, 130 – Tampa General Hospital Education: Pg. 131 – Florida Polytechnic University; WilsonHCG Pg. 132, 134– Florida Polytechnic University Tourism, Arts & Culture: Pg. 141 – Visit Tampa Bay; Blake Yeager Photography Pg. 142 – Plan Hillsborough Pg. 144 – Visit Tampa Bay Pg. 150 – City of Clearwater Pg. 152 – Epicurean Hotel Pg. 154 – Tampa Bay Rays Pg. 156 – Tampa Bay Vipers

Economy: With continued growth across multiple indicators, the Tampa Bay economy remains in a favorable position. It has one of the lowest unemployment rates in the country, job expansion, healthy foreign direct investment and an emerging technology sector. The COVID-19 outbreak poses a short-term threat but the longer view is optimistic.

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Economy in numbers: Consumer Price Index for Tampa-St. Petersburg-Clearwater – January 2020: Percent change Annual average 2019

Dec 2019

U.S. City Average

255.657

256.974

257.971

1.8

2.3

2.5

South region

246.265

247.289

248.005

1.5

2.1

2.3

A (over 2.5 million)

251.110

252.049

252.646

1.7

2.1

2.2

B/C (2.5 million or less)

155.489

156.171

156.673

1.3

2.1

2.3

Area

12 months ended

Annual average 2018 to 2019

Jan 2020

Dec 2019

Jan 2020

South City Size Class (population)

South divisions South Atlantic

103.861

104.478

104.811

1.9

2.5

2.6

East South Central

102.314

102.426

102.776

0.6

1.5

1.6

West South Central

102.577

102.815

103.032

1.1

1.8

1.9

Metropolitan areas Atlanta-Sandy Springs-Roswell, GA

243.731

245.076

2.2

3.3

Miami-Fort Lauderdale-West Palm Beach, FL

269.776

270.918

1.8

2.0

Tampa-St. Petersburg-Clearwater, FL

228.134

231.258

1.7

3.8

Source: U.S. Bureau of Labor Statistics

Tampa Bay Economic Summary:

Tampa Area, Second Quarter 2019y:

Unemployment rates for the nation and selected areas

Average weekly wages for all industries by county (U.S. = $1,095)

3.7

United States

3.4 3.2

Tampa Bay

$747 Pasco

2.6

$788

4.2

Hernando Co.

Hernando

3.6 3.1

Hillsborough Co.

2.5

Hillsborough

3.6

Pasco Co.

$1,040

3.0

Pinellas

3.1

Pinellas Co.

$948

2.5

2.0

0.0 Dec-18

4.0

6.0

Dec-19

Source: U.S. BLS,Local Area Unemployment Statistics

Source: U.S. BLS,Quartely Census of Employment and Wages

12-month percent changes in employment 4.5

Tampa Bay

Tampa Bay employment (number in thousands)

United States

4.0

Total non farm

Change from Dec. 2018 to Dec. 2019

Dec 2019

Number

Percent

1,406.80

31.0

2.3

0.3

0.0

0.0 8.6

3.5

Mining and logging

3.0

Construction

84.4

6.7

Manufacturing

70.2

1.7

2.5

257.6

2.1

0.8 -1.9

2.5

Trade, transportation and utilities

2.0

Information

25.5

-0.5

1.5

Financial services

122.6

1.3

1.1

Professional and business services

257.4

7.5

3.0

Education and health services

218.4

5.8

2.7

Leisure and hospitality

164.0

4.4

2.8

1.0 0.5

Other services

0.0 Dec-16

Dec-17

Dec-18

Dec-19

Source: U.S. BLS, Current Employment Statistics

8 | Invest: Tampa Bay 2020 | ECONOMY

Government

48.5

1.7

3.6

157.9

0.3

0.2

Source: U.S. BLS, Current Employment Statistics

Over-the-year change in the prices paid by urban consumers for selected categories

Over-the-year changes in the selling prices received by producers for selected industries nationwide

12-month percent change in CPI-U, November 2019

12-month percent changes in PPI 16.0

3.0

General freight trucking

14.0

2.0

Hospitals

12.0 1.0

2.1

2.0

2.0

1.8

Offices of lawyers

10.0

0.0

8.0

-0.6

6.0

-1.0

4.0

-3.7

-2.0

2.0 -3.0 Tampa Bay

0.0

U.S. city average

-2.0

-4.0 All items

Food

Energy

Dec-16

Dec-17

Source: U.S. BLS, Consumer Price Index

Average annual spending and percent distribution for selected categories

Dec-18

Source: U.S. BLS, Producer Price Index

Average hourly wages for selected occupations Occupation

100% $8,721

$11,178

80%

$3,810 $5,072

60%

$4,902 $7,034

$7,218

$7,826

40%

$7,694

$9,669

20%

$17,871

$19,971

Tampa area

United States

0%

Tampa Bay

All occupations

Housing

Food

Healthcare

Transportation

Personal insurance & pensions

All other items

United States

$22.95

$24.98

Lawyers

54.56

69.34

Accountants and auditors

33.85

37.89

Registered nurses

32.70

36.30

Construction laborers

14.58

19.40

Landscaping and groundskeeping workers

13.34

14.88

Retail salespersons

12.90

13.61

Source: U.S. BLS, Occupational Employment Statistics, May 2018

Source: U.S. BLS, Consumer Expenditure Survey

Employer costs per hour worked for wages and selected employee benefits by geographic division

Dec-19

Over-the-year changes in wages and salaries 12-month percent changes in ECI

Private industry, September 2019 Total compensation Wages and salaries

South Atlantic (1)

United States

$31.85

$34.77

22.67

24.38

Total benefits

9.19

10.38

Paid leave

2.23

2.50

Vacation

1.15

1.29

Supplemental pay

1.02

1.12

Insurance

2.36

2.78

Retirement and savings

1.17

1.31

Legally required benefits

2.40

2.68

(1)

The states that compose the South Atlantic census division are: DE, DC, FL, GA, MD, NC, SC, VA and WV

Source: U.S. BLS, Employer Costs for Employee Compensation

3.5 3.0 2.5 2.0 1.5 1.0 0.5 South Atlantic

United States

0.0 Dec-16

Dec-17

Dec-18

Dec-19

Source: U.S. BLS, Employment Cost Index

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Powerhouse: Looming concerns about a potential national economic downturn are doing little to faze local players Tampa Bay is a growing economic powerhouse.

Despite widespread concerns over a looming economic downturn, an ongoing trade war with China, and the slowing pace of nationwide economic growth, exacerbated by the COVID-19 pandemic, Tampa Bay has enjoyed some of the best job expansion and economic development in Florida and the entire country. It boasts a low and still decreasing unemployment rate and growing foreign direct investment.

These economic successes have positioned the region as an increasingly attractive destination for educated and high-earning young professionals to fill the area’s many available high-paying jobs, with Tampa Bay standing at No. 1 for competitivelycompensated STEM positions. As this emerging workforce migrates to the region, their retiree parents follow them to be near their grandchildren, further turning the wheel of growth.

Boosting the area’s attractiveness for companies, investors and immigrants alike is the region’s affordability. The annual Cost of Living Index (COLI) report in January 2020 gave the area an average annual index of 90.9 for 2019, slightly above its 2018 performance, suggesting the region is becoming 10 | Invest: Tampa Bay 2020 | ECONOMY

more expensive. Still, Tampa Bay ranked No. 1 for affordability among similar markets, like Charlotte and Nashville. It came in just below Daytona Beach for all Florida state metros.

History and development Tampa Bay is a large region on Florida’s western coast that encapsulates the cities of Tampa, St. Petersburg and Clearwater. It covers approximately 400 square miles, indenting the western coast of Florida. The Tampa Bay Region, which derives its name from the bay, was first discovered in 1513 by the Spanish conquistador Ponce de Leon. However, the Spanish were primarily focused on developing Florida’s eastern coast, and thus the state’s western reaches were left largely undisturbed until 1824, when Americans began to settle the region in earnest. Only two months after these first settlers arrived, the U.S. Army established Fort Brooke to protect the harbor at Tampa Bay in acknowledgment of its strategic importance. The region finally became part of the United States in 1845, and grew rapidly thanks to the increased access afforded by Henry B. Plant’s railroad extension to the Hillsborough River, as well as the ( )

ECONOMY INTERVIEW

Clipping along Regional economy moving at a strong pace allowing Hillsborough to meet the needs of its 30,000 new residents annually

Sandra Murman Commissioner – Hillsborough County To what do you attribute the significant population growth in the Hillsborough County region?

The region’s economy continues to clip along at about 4% growth rate per year (gross regional product per the U.S. Bureau of Economic Analysis). This allows us to really help meet the needs of the 30,000 new residents that are moving into Hillsborough County every year.

Especially during the winter months, the Tampa Bay area is able to capitalize on the extreme weather most Northeastern states experience. Visit Tampa Bay is strategic about advertising in those communities so those residents can see the beaches and beautiful weather available in this region. Additionally, as a result of efforts like these and the overall economic growth in the region, people consider Tampa Bay when they are looking to change their lifestyle.

How is the county handling this influx of new residents to the region?

We are preparing and responding to new residents’ needs by investing in high-quality public spaces and infrastructure, including our parks and environmentally-sensitive property, as well as new fire stations, libraries, and cultural facilities. Another area we’re laser-focused on is transportation. People want change in the form of better transportation, and they want a more sophisticated, streamlined public transportation system. We need to look at light rail or another way to move people, especially from major hubs like our universities, downtown, the airport, and Tampa’s Westshore District. If we implement the right infrastructure improvements, that will result in even more significant growth. These investments ensure that we continue to be attractive to high growth companies.

How much of a focus is affordable housing for the local government?

Affordable housing boils down to quality of life and the commute. Anyone who is making an average income, typically between $20,000 and $40,000, could benefit from affordable housing. Homes are expensive now, and with the growth in our region, prices have only continued to go up. This year, we invested $25 million into affordable housing. One area where there’s a particular need is with our elderly population; those whose social security and pensions often do not meet their housing needs. This includes smaller developments with more of a community feel and access to assisted-living resources. The recent legislation that passed unfortunately restricts us from forcing developers to build affordable housing. That hurt us because we were hoping to utilize that as an incentive for developers to continue building here. www.capitalanalyticsassociates.com

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Craig Richard President & CEO Tampa Bay Economic Development Council

What were the reasons behind the Tampa Bay EDC’s rebranding?

We have been holding strategic planning sessions to develop our next three-year strategic plan. Part of that included discussions about how we market ourselves as a region and as an organization. We found there was confusion about our name outside of the market. For example, when we worked with people from Nashville or companies in Boston, they had no idea what TampaHillsborough meant. There are several local marketing agencies, such as Visit Tampa Bay, Film Tampa Bay, the Tampa Bay Sports Commission and so forth, promoting the area nationally and we were the only ones without Tampa Bay in our name. Our mandate is to attract new businesses and to help local businesses grow and expand. Business development is still what we do first and foremost. But we have developed two additional priorities as strategic areas: talent attraction and placemaking.

What do investors want you to do regarding talent attraction and retention?

If you take immigration out of the equation, we will actually have stagnant population growth. Fortunately, 27,000 people relocated to Hillsborough County last year. Without that immigration we wouldn’t be experiencing growth. Our Investors say that one of the most important things that we can do is to help attract the type of talent that we need.

How do you work to help and promote small businesses in the area?

Our Business Retention and Expansion program focuses on our existing small and medium-sized businesses and offering resources that assist them in going to that next level. We identify and visit more than 200 small and medium-sized businesses every year to spread the word about the resources available to them to grow and expand, such as training and opportunities in international markets through trade missions.

12 | Invest: Tampa Bay 2020 | ECONOMY

The population of the region was 3,142,663 in 2018.

( ) series of lavish hotels he built along the rail line to coax visitors into the region. The shipping industry also entered a boom that ran from the 1880s into the 1890s, and today Tampa’s port is the seventh-largest in the entire country. Vicente Martinez Ybor’s cigar factory, established in 1886 in the area that still bears his name, the Ybor City district of the city of Tampa, was also instrumental in the economic development of the region. In 1914, the world’s first scheduled commercial airline service was also launched in Tampa Bay in the form of Percival Ellicott Fansler’s St. Petersburg-Tampa Airboat Line. Between 1923 and 1926, the mass production (and mass commercialization) of the automobile brought a new wave of settlers into the region.

Today, the Tampa Bay region consists of three cities: Tampa, St. Petersburg, and Clearwater, and by some definitions covers the counties of Hillsborough, Pinellas, Hernando, Pasco, Citrus, Manatee, Sarasota, and Polk. The population of the region was 3,142,663 in 2018, making the region one of the Top 25 most populous metropolitan areas in the United States.

Demographic shifts The demographic makeup of the state’s population has been changing over the last few years. For

ECONOMY OVERVIEW

example, as of 2017, 12.7% of the Tampa Bay population consisted of foreign-born residents (393,000 people), an uptick on the year before when that figure was 12.5% (378,000 people). The most common countries of origin for foreign-born residents of Tampa Bay are Cuba (1,028,508 people), Haiti (339,246 people), and Colombia (285,400 people).

Another important demographic shift taking place among Tampa Bay residents is the steadily increasing median age of people living in the area. In 2018, the median age of all people in the region was 42.3, compared to an even 42 in 2017. It is of note that Tampa Bay residents born outside the country tend to be older than native-born residents; the median age of the former was 47 in 2018, whereas the median age of the latter was 41.

One factor contributing to the aging of Tampa Bay’s population is a trend that is being referred to as “baby chasing.” Baby chasers are baby boomers who move near their millennial children upon retirement to be close to their grandchildren. This is no rare occurrence – research shows that as high as 25% of baby boomers retire near their children and grandchildren, even if it means moving to another state. Florida has always been a destination for retirees, and it seems that baby chasers are keeping to tradition, with three Florida

regions among the Top 20 destinations for members of this demographic (Tampa Bay is No.14). What makes Tampa Bay so attractive to baby chasers? Simply put, it’s the fact that the region is such a desirable place to live for the parents of the babies they’re chasing: millennials. Tampa is among the Top 5 baby chaser destinations in terms of high-income job growth over the past five years, but remains affordable, while still offering cultural and recreational amenities like Ybor City and award-winning beaches. These factors are motivating families to move to Tampa, and in 2016 and 2017 Tampa ranked third out of cities in Florida in terms of the number of families that moved into its borders, with families defined as households with members under 18 years of age.

Economic performance 2019 was a watershed year for economic growth in Tampa Bay, with multiple cities in the region scoring high in a WalletHub ranking of the top cities in the country in terms of economic growth. The WalletHub study broke cities down into large (population greater than 300,000), midsize (population of 100,000300,000) and small (population fewer than 100,000) and ranked their economic growth according to 17 metrics, including population growth, job growth, www.capitalanalyticsassociates.com

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ECONOMY OVERVIEW

building-permit activity, growth in businesses and other economic factors. The city of Tampa finished 67th among all U.S. cities, 10th on the list of large American cities, ninth among Florida cities, and first in Tampa Bay. Tampa’s high score for economic growth is helped by its impressive creation of 21,700 jobs between 2018 and 2019 – the third most in Florida. Other Tampa Bay region cities that made the list include: Clearwater (168th on the midsize list), Lakeland (85th on the midsize list), and St. Petersburg (83rd on the midsize list).

On the employment front, the Tampa Bay Region posted big job creation numbers in 2019, with DeSantis announcing in July 2019 that the region had added 29,100 new private-sector jobs since the same time in 2018, or the second-highest number of jobs created among all Florida metro areas. During the same period, the metro area’s unemployment rate dropped 0.3%, to 3.5% (0.1% higher than the state average). The unemployment rate dropped even further over the rest of 2019, to end the year at 3.0% in December. The fastest-growing industries in Tampa Bay were professional and business services (7,200 new jobs), education and health services (5,700 new jobs), and construction (5,000 new jobs). Although second in job creation, Tampa Bay ranks first in job demand with 58,559 openings, and first in demand for high-skill, high-wage STEM occupations, with 19,381 openings in June 2019. The figures suggest a shift in employment needs from the government to the private sector, according to Ron Christaldi, president and CEO of Shumaker Advisors Florida, LLC. “There is a great deal of need in the private sector right now.

We are no longer an area that is driven by government

Tampa Bay is the 13th-largest media market in the United States.

ECONOMY OVERVIEW

employment. The government’s doing a great job and we have great political leaders, but the growth and prosperity of industry in this region has continued to be exponential and the needs have continued to grow. Those needs are both business-to-business and business-to-government. For instance, places like MacDill Air Force Base are extraordinary economic drivers in the community. They serve an extremely important and critical function from a military perspective but they also create a lot of jobs. There are a lot of spin-off businesses in the defense industry that are located here because of MacDill.”

The region’s total GDP is also on an upward trend.

The latest figures through 2018 show annual GDP at just over $158 billion, continuing over two decades worth of acceleration. With that growth come concerns in terms of sustainability, in particular

the impact on the environment. Johnnie James, president and CEO of Lykes Bros. Inc. told Invest: that companies need to do their part, which sometimes entails compromise. “We consider ourselves stewards of the environment. We own large tracts of land and we have a lot of natural resources on the land from species of animals to natural wetlands. We have always done our best to try and protect these. One of the things that is being proposed and is really big in the news, are the three new roadways. The legislature passed them in 2019 and they are now under study.

The one that is targeted for Southwest Florida and would run from Naples to Lakeland has the potential to come through our ranch. As a result, we are trying to be proactive and come up with a way to support these roadways while also being environmentally sustainable. The roadways are needed because of the growth of the state, but at the same time we don’t want to ruin our environment. There needs to be a balanced approach. Solving the issue of a more environmentally-conscious business community is not easy. It is going to take a lot of creative minds and a commitment to sacrifice old habits and try some new things.”

Dealing with infrastructure issues across the region is another element in that process. Governments are going directly to the people to address the challenge, such as the referendum that instilled the Penny for Pinellas tax. Revenue from the tax is helping communities like the city of Largo to correct the issues they face. “We have a lot of gaps in sidewalk connection and some residential roadways that need repaving, so we are investing a significant portion of Penny for Pinellas, which is the 1% sales tax, in these infrastructure improvements. We are also looking at a lot more investment in protection against stormwater. We do not have many areas that have significant stormwater challenges when it rains heavily, like in some other areas of the county, but we still want to continue to make sure that we improve our stormwater system,” said Woody Brown, the mayor of Largo.

Global factors As a member of the global economy, it is inevitable that global economic factors will impact Tampa Bay. For example, experts have been warning of a potential recession for some time now, and the U.S. economy is showing clear signs of slowing, slipping from 3.1% growth at the beginning of 2019 to end the year at 2.1%.

The economy received a further jolt in the first quarter of 2020 as the COVID-19 pandemic that emerged from www.capitalanalyticsassociates.com

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Lynda Remund President & CEO Tampa Downtown Partnership

Why is it important to have a strong downtown?

If you go to any city in the United States or around the world, you will see that a strong downtown is their center core and is really the face of that region. I believe it is very important that we have that strong city center.

Downtown Tampa is growing by leaps and bounds and we are excited about that. A quick look around Tampa reveals that the Downtown area is not only growing but so are the outskirts and the suburbs. This is apparent when looking at areas like Midtown and projects like those happening in Westshore. We are proud that Downtown is such a strong center for our city, but happy to see that the region is developing as well.

What challenges does Tampa face?

One of our biggest challenges in this region is obviously transportation, so having a commuter system in place will help to mitigate this issue. We often hear from big companies that are looking to move here or even conventions hoping to come here that they are looking for a place where people are able to move around easily.

We are starting to provide more of these options, but we have so much more work to do to become a more viable option for people.

What are your top priorities for Downtown?

One of our top priorities is reinvesting into the Downtown area. We are looking at getting involved in some small-scale capital improvement projects. We will be reinvesting in a couple of small projects that will help pedestrian safety in regards to signage, lighting and aesthetics for the Downtown. Downtown is probably the safest place in the whole city and we are working to make it even safer. We are also bringing the International Downtown Association Conference here in October 2020. That is an audience of about 1,000 people from around the world, consisting of planners, elected officials, architects and business leaders. All of these experts will be here to share best practices and we are excited to receive them.

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China spread across the globe, bringing economies to a standstill as social distancing and home office for nonessential workers became the norm. While most pundits agree a long-term bounceback, as the national economy slows, it is likely that the economies of areas around the country like Tampa Bay that rely in part on trade through their ports will lag as well. Port Tampa Bay, the largest port in Florida, handles over 37 million tons of cargo annually.

Another global event that is sure to impact Florida’s economy is Brexit. The United Kingdom’s withdrawal from the European Union came into effect on Jan. 31, 2020, a development that saw a drop in the value of the pound, and local purchasing power as a result.

This may have a real impact on the economy of Florida and Tampa Bay, given that approximately 1.7 million UK tourists visited the state every year leading up to Brexit, making Britain the second-highest source of foreign visitors annually, beaten out only by Canada.

Travelers from the UK account for a considerable amount of tax yield for the state during their visits, which could be in jeopardy as a weaker pound makes it more expensive for UK residents to travel, and therefore reduces tourism to Florida. Outside of tourism, trade with the UK could also be impacted by Brexit, as a weaker pound could discourage imports from Florida due to the increased expense, thereby reducing the volume of Florida’s export business with the island nation.

The retracting global economy is also impacting Asia and Latin America, regions with which Tampa Bay does a healthy amount of trade. China continues to show signs of a contracting economy. In fact, the growth of China’s economy in Q2 2019 fell to its lowest level in 27 years, thanks to the country’s ongoing trade war with the United States. The developing coronavirus crisis also poses a threat to international trade, as the world governments take drastic measures to impede the spread of the deadly virus, including telling businesses to cease operations and for workers to remain at home in some of the most heavily impacted areas.

As for Latin America, Mexico and Costa Rica are also experiencing economic downturns, Argentina will likely experience yet another year of poor economic performance, as well. Venezuela, meanwhile, continues to reel from political turmoil.

International business With the help of bodies such as the Tampa Bay Economic Development Council (EDC), the Tampa Bay International Business Council (TBIBC), Global ( )

®

oundtable:

What is needed to sustain growth?

Business leaders from the region discuss efforts needed and the challenges to overcome to ensure Tampa Bay remains a dynamic economy even in the face of a potential national downturn.

Kelly Flannery

President & CEO South Tampa Chamber of Commerce

How is the South Tampa Chamber working to support emerging sectors?

Everything right now is technology-based and anyone who doesn’t believe that is going to be left behind. However, for us as an organization, we rely heavily on partnerships and resources that are available in the community. One of the things the chamber focuses on very heavily is cultivating partnerships and relationships so that when a business comes to us, if it’s not a service we offer, we know where to direct them to get what they need.

Rick Homans

CEO Tampa Bay Partnership

What specific businesses or industries would you like to attract to South Tampa?

With MacDill Air Force Base here, there’s a really big opportunity to attract additional military and defense contractors to this area. There’s a few that are here, but I think there’s a lot of room for growth in that space.

What areas is the Tampa Bay Partnership focusing to ensure growth?

On the transportation front, we continue to advance the concept of a regional bus transit project to connect the three counties. This 41-mile project has advanced into the project development phase and there is a lot more to accomplish moving forward. On the workforce front we have advanced our talent pipeline management process according to the structure developed by the U.S. Chamber of Commerce Foundation. The process uses the principles of supply chain management to determine demand, competency and credential requirements and then the employer collaboratives collectively communicate this information to workforce providers in the region. This is a new concept for the state of Florida and we are the first in Florida to do this.

What market trends do you think will become a staple in the local economy heading into 2020?

We have several multi-use business districts that have popped up. Hyde Park Village, for example, has undergone a multi-year renovation. They’ve attracted a mix of both national and local retail and hospitality brands to this space.

They are just completing construction on a coworking space and have completely sold out of all the office space that’s there. Now, they’re recruiting for membership opportunities. Midtown and the Westshore District are two new developments that have already started construction for housing, retail and other concepts. For years, people have been asking for walkable, livable neighborhoods.

Developers have listened, and they’re answering the call.

How are you coordinating your effors with other regions?

We work as separate counties, and as separate cities; there is virtually no structure in place for us to work together as a region. For the last four years, we have been pushing for some sort of regional planning. We were successful in getting the state legislature to restructure the Tampa Bay Area Regional Transit Authority (TBARTA) to focus on transit, but getting elected officials from throughout Tampa Bay to actually work together on a project is somewhat challenging. In some cases, there seems to be a ‘my county first’ approach, which does not leave a lot of air in the room to have a discussion about regional priorities.

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ECONOMY ROUNDTABLE

Courtney Orr

Ybor Development Manager Ybor City Development Corporation

How is Ybor city changing as the region grows?

The dynamics of Ybor City are shifting as we see an increase in the residential population, office users and one-of-a-kind restaurants and retailers. What’s most notable though is the influx of residents wanting to call Tampa’s National Historic Landmark home. Ybor has long been known strictly as an entertainment district and that mindset is changing with the current progressive shift underway.

What is needed to ensure the neighborhoods success?

Safeguarding Ybor’s historic features and history, especially the cigar industry from which Ybor City was built, is fundamental to the neighborhood’s success.

The City of Tampa’s Barrio Latino Commission provides oversight to historic preservation by reviewing all development projects to ensure Ybor’s charm stays intact. We participate by offering a commercial facade grant to inspire historic preservation. This grant, along with other separate ones we offer, has made a tremendous difference throughout the historic neighborhood. Altogether, it helps breed additional private investment that enhances the district and ultimately will forever maintain Ybor’s charm.

Fortunately, Ybor draws very unique restaurant concepts here. Copper Shaker is one example of a successful restaurant opening its second location on 7th Avenue by the end of the year. New establishments like it preserve Ybor’s distinct vibe and with all the new residential development online distinct retailers that we want are sure to follow.

Ruby Wake

Vice President Tampa Bay Latin Chamber of Commerce

Why was it important to create a Latin chamber?

We noticed that there was a gap between the various Latino and Hispanic organizations. In this region, we have amazing organizations that cater to small businesses and startups by providing them with legal and accounting services, but there is no organization that caters to the professional services industry or the technology-driven industries. This was one of our main rationales for wanting to create this new chamber. We are in the process of developing a chamber that brings more than just monthly meetings and luncheons. We want to develop a chamber that is going to facilitate and assist in the development of new industries and companies within Tampa Bay. In order to accomplish this, we have created a board of directors that is very diverse, ranging from attorneys, to public administrators, to news anchors, with the purpose of figuring out what we can do for the Latino business community within Tampa Bay. How are you working to elevate Latin participation in the technology wave?

We hope to assist with the disparity by establishing two accelerator programs and a Latino leadership program.

One accelerator will be a technology accelerator that will be hosted in conjunction with Tampa Bay Wave and the second accelerator will be a professional services accelerator. The Latino leadership program will assist Latinos who are interested in becoming involved in the political arena. We hope that by providing these additional resources, we will propel not only the Latin community within Tampa Bay, but Tampa Bay in general. www.capitalanalyticsassociates.com

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ECONOMY OVERVIEW

( ) Tampa and Enterprise Florida, Tampa Bay has become a center for global commerce by recruiting foreign corporations to enter or expand in the regional market. 2019 saw Brazilian snack food company Cicopal establish a division of its EKOA Brands in Tampa, for example. In the air, Delta launched its inaugural flight to Amsterdam out of Tampa International Airport. Representatives of the EDC were aboard that flight to Amsterdam, and upon arrival in the Netherlands met with eight Dutch companies interested in potential investments in Tampa and made plans to return in spring 2020 to conduct a trade mission. In 2019, the EDC also attended SelectUSA, the massive foreign direct investment showcase, with representatives of Global Tampa and Enterprise Florida. SelectUSA presented an opportunity for Tampa’s business development leaders to interview with Chinese business journalists and capitalize on the new weekly container ship delivery to Port Tampa Bay from China. The EDC also conducted an export sales mission to Brazil in summer 2019 and a trade mission to France in the fall. “We want to keep encouraging outside businesses, both national and international, to establish in the region. International business people

During summer, the average temperature in the region is 83°F.

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come to Tampa Bay on vacation and they immediately discover the positive business environment of Tampa and our amazing weather. This is hopefully part of what convinces them to set up their American business here in the region. We also have a new mayor in Tampa Bay, Jane Castor, and we know she is working hard on the best strategies to champion Tampa Bay as the place to do business,” said Karl Kaliebe, executive director of World Trade Center - Tampa Bay. Another big international business event that took place in Tampa Bay in 2019 was the National LGBT Chamber of Commerce (NGLCC) International Business & Leadership Conference. The conference is presented annually by the NGLCC to expand economic opportunities for the LGBTQ business community and is the largest gathering of LGBTQ business leaders and allies in the world. The event was hosted by the Tampa Bay Diversity Chamber of Commerce from Aug. 1316 2019, and brought together business leaders from approximately 20 countries representing nearly 250 corporations, government agencies, and nonprofits. The conference offered attendees three days of meetings, seminars, and more than 50 workshops designed to generate business and networking opportunities.

ECONOMY OVERVIEW

John Wilson Founder & CEO – WilsonHCG Tampa has a highly educated workforce. There is a very business-friendly community and unlike other places in the world, you also have like-minded growth profiles among many of the businesses here. Most of them are on a path of growth. It is a solid place to be. Also, for the first time we are seeing that talent is starting to move back here. For a long time, people would go to college and then move to Atlanta or Charlotte but now they’re returning to Tampa. As a tech startup city, Tampa is also mostly a service-based economy, so you have highly educated, skilled workers.

record $90.98 billion dollar budget for the fiscal year that Government The Tampa Bay economy often receives help from the began on July 1, 2019. The budget, which constituted a federal, state, and local governments, as each level has 2.5% increase over the previous fiscal year’s budget of an interest in the success of the region and its people. $88.7 billion, made generous provision for spending As an example of federal economic aid to the region, on environmental projects (like $680 million for the Tampa Bay Regional Planning Council (TBRPC) Everglades restoration and environmental projects); received two grants in 2019 to fund projects geared to- a $242-per-student increase in public school funding; ward increasing Tampa Bay’s resilience in the face of and $10.8 billion for the Department of Transportation devastating storms, rising sea levels, and extreme heat for highway construction, bridge repair, existing waves. The first grant was in the amount of $299,245 facility maintenance, aviation improvements and seaport infrastructure. Making and was awarded by the U.S. Enconscientious use of the line item vironmental Protection Agency. veto authority, DeSantis cut more This grant is intended to fund than $131 million from the budget the TBRPC’s efforts to gather loto reach his goal of coming in cal governments in the region under $91 billion for the fiscal and establish a uniform underyear. standing of how to prepare their Finally, a major initiative at communities for natural disasters the local level that is sure to have through improving their infraeconomic ramifications is the city structure, economies, and flooding Karl Kaliebe of Tampa’s new $15 minimum mitigation. The second grant came World Trade Center - Tampa Bay wage for city employees. Effective from the U.S. Department of ComOct. 1, 2019, all new, full-time city merce’s Economic Development Administration, and provided $175,000 in support of employees will be hired at a wage of $15 per hour, with the development of a Category 5 hurricane simulation those already working for the city at below $15 getting a to be used by governments to practice responses to bump to reach that amount. Tampa Mayor Jane Castor Tampa Bay businesses hit by one of these severe storms. said that the wage bump was part of her commitment The program will have a special focus on helping small to improving the resilience of the city, which includes businesses learn about how the emergency opera- improving its economic environment and the quality tions departments at local governments can help them of life of its residents. The mayor hopes that, in during a disaster, as well as helping local governments addition to simply doing the right thing by providing city employees with a living wage in the face of a rising anticipate the needs of small businesses.

One of the biggest economic stories at the state cost of living, the new $15 minimum will also help the government level was Gov. Ron DeSantis’ passing of a city to attract and retain valuable talent.

We want to keep encouraging outside businesses ... to establish in the region.

www.capitalanalyticsassociates.com

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ECONOMY OVERVIEW

Technology and innovation As a natural extension of its booming economy, Tampa Bay has also developed into an increasingly prominent player in the tech scene, with good reason.

“Coming from the Silicon Valley area to Tampa Bay, I can speak to the fact that there is a different mentality in Tampa Bay. People in this region have a desire to listen, and there is an ‘ear to the ground’ kind of mentality. There also seems to be a little bit more hunger and collective desire to push this region to the next level on all fronts, which is wonderful. There is simply a vibrancy in Tampa Bay that does not exist in many other communities around the United States. The access to academia and the universities in this area are also an enormous benefit to the startups and tech ecosystem,” said Tom Witmer, president and CEO of SageLegion.

In 2019, Tampa Bay was the No. 1 metro area in Florida in terms of demand for high-skill, highwage STEM workers, with 19,381 openings for such positions in June 2019. These jobs are at some of the most exciting and innovative tech companies out there, including numerous companies landing on Deloitte’s Fast 500, a ranking of North America’s fastest-growing technology companies. The Tampa Bay area companies making the Fast 500 include KnowBe4, ReliaQuest, and MAS Global Consulting LLC, which all earned their spots by virtue of their impressive revenue growth between 2015 and 2018.

KnowBe4, which is based in Clearwater, ranked 55th with 2,237% revenue growth during the study period and a value of more than $1 billion as of June 2019. Tampa-based ReliaQuest came in at No. 356 with 275% growth, and recently expanded its Tampa

The Tampa Bay region is home to some of the premier educational institutions in Florida.

CONSTRUCTION ECONOMY OVERVIEW

John Flanagan CEO CareerSource Tampa Bay

What is behind the company’s success in the last few years in the Tampa Bay Region?

I believe it’s partnerships. The system itself can’t be all things to all people, so we have to make sure that we partner with the right agencies, the right businesses, and the right governmental institutions to make sure we are filling the gaps that employers see in regards to who’s coming onboard for them and how they are finding that talent. Our role is really to sit in the middle of that and make sure that the partners talk to each other and really align.

office and began operations at a new cybersecurity center in Salt Lake City, Utah. Finally, MAS Global Consulting, a Palm Harbor company, was ranked at No. 384 thanks to its 242% revenue growth. Along with these three noteworthy Tampa Bay companies, Florida boasts 13 other companies on the Fast 500 statewide. “The communities in Tampa Bay, St. Petersburg and Clearwater have truly invested in the tech market, and they are trying a lot of different avenues to keep tech professionals here in the area.

We realized that if we are going to attract more techbased companies, than we are going to need to have the talent. Otherwise, these companies are going to go somewhere else and with them they will take the revenue and taxes to another area where they have this access to talent. This region has done a great job of not just talking about it, but actually putting a plan together, initiating the plan and setting up for ( )

In which sectors were you most active throughout 2019?

Healthcare is a driver, from entry-level personal care positions to registered nurses. It is the same everywhere, but it is exacerbated in Florida because of the influx of population that we get, particularly in the Tampa Bay Region, where in the last 10 years, according to the latest census, we had about a quarter of a million new residents just in Hillsborough County. That comes with needs, especially in the healthcare segment. And then of course, hospitality and tourism are big. We are also a tech hub here in Tampa, so there is a huge need there.

Manufacturing is starting to grow here as well.

How are you assisting the construction sector, which is dealing with a serious lack of trade labor?

It is a growing area because we are going to need infrastructure. Hillsborough County just passed a 1% sales tax to address some of the issues we have with infrastructure. One of the things that we do as workforce developers is to work not just with companies but with educational institutions. We have a strong partnership with the Hillsborough County Public Schools, which is one of the largest school districts in the country.

Together, we really look at the short-term credentials that can help folks enter the workforce, start to earn a wage and if they want to, they can go back to school and get a degree. www.capitalanalyticsassociates.com

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Market voices: St. Petersburg

Alison Barlow

Executive Director St. Pete Innovation District

We are excited about our progress on our smart city project. The St. Pete Innovation District is partnering with Spectrum and US Ignite to test concepts around smart city technology to improve the lives of the people in our community. It is also a chance for us to try sensor technology and think about what it would mean for educational and workforce opportunities. We are getting closer to installing four smart light poles on the University of South Florida St. Petersburg campus that will have power, internet and the ability to host environmental and traffic sensors.

We have 16 Opportunity Zones in Pinellas County, and we have a prospectus for all the zones on our website. Every one of the zones has a little white paper associated with it, with details about that zone’s demographics, types of land and land use, our ideas and potential development opportunities. That is a big emphasis of ours for the coming year, and one of the biggest areas of land that will have future development is the Tropicana Field site, where the Rays’ stadium is. The mayor and city council have committed to begin redeveloping that site, and they are willing to share some of the development benefits with the Rays. There are several other great Opportunity Zones in Pinellas County, and they are going to be a huge benefit to the region.

Jason Mathis CEO St. Petersburg Downtown Partnership

Mike Meidel

Director Pinellas County Economic Development

There is a common misconception that greater density is worse for the environment, but it is actually the opposite as greater density is the most sustainable way to build. As opposed to an individual family living on a quarter acre lot where they will be taking up more space and having a greater impact on the environment, we can have these families in condos, multifamily units or townhomes where they will consume fewer resources and ultimately have less of a negative impact on the environment. If we want to preserve the elements that make St. Petersburg so unique, like our green spaces, beaches and parks, it really does require people to think about where they live and be open to the idea of living in closer proximity to one another.

24 | Invest: Tampa Bay 2020 | ECONOMY

ECONOMY INTERVIEW

The right fixes Pinellas County is addressing its transportation issue with a strategy that links jobs, housing and opportunity countywide

Kenneth Welch Commissioner – Pinellas County What are the main initiatives that Pinellas County is working on?

Hillsborough County approved a 1% sales tax in 2018.

Tampa Bay is the best metro area in the country, except on the issue of transportation. That is the one area where we are behind the curve. It was huge that Hillsborough was finally able to pass the sales tax to fund transportation. The reality is that it usually takes multiple tries for a region to approve that kind of transportation funding source. In Pinellas, our county administrator and community stakeholders have been working on a strategy to fund our transportation needs, in a way that links jobs, housing and opportunity countywide. I believe that effort will culminate in a referendum this November for a sustainable transportation funding source. The initiative will address transportation countywide, reduce congestion on our roadways, provide safer pedestrian and bike trails, maintain bridges support transit and regional connections. This will be transformational for our county, and it will mean that the two largest counties in Tampa Bay, Pinellas and Hillsborough, finally have the means to connect our region, and provide our citizens with modern, efficient transportation options.

funded from the Penny will be built on investment corridors funded by the upcoming transportation tax that I believe will be on the ballot in November 2020.

How important is the availability of affordable housing for the region’s prosperity?

It is vital. We are growing very quickly, and St. Petersburg has one of the most vibrant downtowns in the Southeast. There is a lot of new residential development, but many are increasingly expensive market-rate developments. So, where and how do you invest in affordable and workforce housing?

Thankfully, Pinellas voters approved the Penny for Pinellas sales tax in 2017. We have a committee of city and county economic and housing experts who have recommended criteria for project funding. Housing

What are the unique business opportunities to be found in Pinellas County?

We offer a business-friendly climate, and a low-tax revenue model with no state income tax. The workforce and education institutions are mature and growing.

We are No. 2 in manufacturing jobs in the state after Miami-Dade. We have vibrant live/work/play/retire communities, and the best beaches in the world. We are also going to fix that transportation issue. I think more and more individuals, families and businesses are realizing how attractive Tampa Bay, and Pinellas County in particular, is for business. www.capitalanalyticsassociates.com

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ECONOMY OVERVIEW

( ) a successful future,” Chris Pitisci, CEO of Pitisci growth in 2019, bringing it to $2.5 million in revenue for the year. Finally, St. Petersburg-based SavvyCard & Associates, told Invest:.

Another clear indicator of the prominence of won another $1.5 million from 23 investors in its Tampa Bay as an emerging tech mecca is the latest funding round in June 2019. The company, volume of investment that the region’s startups which helps business professionals generate sales and companies attract, with $33 million invested leads, previously raised $200,000 in April 2018 and in Tampa Bay startups in August 2019 alone. For $1 million in 2016. The latest $1.5 million in funds example, Lumina, an AI-driven predictive analytics will go toward hiring additional employees and and risk-sensing company headquartered in Tampa, increasing communications to potential new clients. has lined up a series of impressive investments But more is needed, said SageLegion’s Witmer, describing his own experience over the past couple of years, raising funds. “There are many including $5 million in July 2019 high-net-worth individuals to fund the development of its here, but I don’t believe there new Radiance platform, which are enough angel investor uses AI to identify risk, facilitate funds or later stage funds in the security clearance process, Tampa Bay. I’m engaged with and reduce existing backlogs. a couple of funds both on the The investment comes from 18 investor side and talking with different investors, and meets Chris Pitisci them about my new startup the full amount requested by Pitisci & Associates SageLegion, which manages Lumina according to the SEC filing made by the company. The company now strategic analytic collaboration and agility across generates approximately $1 million in revenue data assets and clouds. They are fabulous and frankly annually, has recently expanded to Washington, we need more of them as well as connectors and D.C., and hired a new CFO. ComplianceQuest other nurturing organizations to support startups was another major Tampa Bay-based investment attempting to develop and scale innovation. I had an recipient in 2019. The software company closed its exit some time ago. Making it happen is incredibly Series A funding last year with $36 million total. difficult and you need a lot of help. I would love to ComplianceQuest ranked 163rd on the Inc. 5000 list, see more enabling organizations and for the overall “Greatest Entrepreneurs and Fastest-Growing Private ecosystem to work in concert. Sometimes in places Companies in America for 2019,” and saw 2,357% like Silicon Valley, a founder and management team

This region has done a great job …setting up for a successful future.

J.P. DuBuque President – Greater St. Petersburg Area Economic Development Corporation It is important to remember that growth is necessary for us to move forward as a society. If we are not growing as individuals and as a community, then we are actually moving backward in our progression. That said, the level of pro-activity from the Economic Development Corporation allows us to select the types of businesses that we want to really bring here. That in and of itself will help move us forward. We also have a full community commitment to the Grow Smarter Strategy, which gives us a common road map for every person in the economic development game. Those things allow us to maintain the culture and character of St. Petersburg while still moving forward. The worst thing that we could do is to kill the golden goose, which for us is the vibrancy, authenticity, arts, creativity, innovation and “funk” of St. Pete.

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ECONOMY OVERVIEW

Bill Cronin President & CEO – Pasco EDC

We want to make sure we have a good mix of both office and industrial investments in the county since large industry has a different multiplier because it attracts suppliers and others that the office investments do not. We are one of the only Economic Development Organizations to own our own incubators, with two business incubators that we own and operate. They offer countywide programming, where you don’t necessarily have to be in that coworking space to take advantage of the curriculum that we offer for startups, and even for companies that are going into their second phase.

with experience that can instill confidence and who has a big enough total addressable market, can get funded on this basis, even if they do not have much more than a minimum viable product or limited traction. Investor groups know them however and the space they are pursuing plus where the demand will likely be as they mature. I’d like to see more of that mentality here in Tampa. It provides more swings at the bat which yields faster learning (and failures) and bigger successes. It is more organized innovation when all these enablers are working together and its good for the region, the economy and enhances everyone’s quality of life.” Jim Barnish, managing partner at Morgan Hill Partners, adds that telling the story is vital to attracting capital. “The biggest keys to attracting more investment capital into Tampa Bay are investor education and telling our own narrative. The region has become tremendously better at educating highnet-worth individuals on why investing in Tampa is the right move. There are a lot of ways for investors to spend their money, so expressing the story of Tampa Bay’s entrepreneurial ecosystem has never been more important. Fortunately, there are many local players in Tampa Bay who are doing a great job at helping to tell the story that we are the region to invest their money into. We at Morgan Hill Partners are also trying to do our part to tell this story and are excited about what the future holds for the region.”

Another boon for the tech startup scene in Tampa Bay is the $7.5 million federal investment for a stateof-the-art technology and advanced manufacturing startup incubator in St. Petersburg. The money is from the U.S. Economic Development Administration, and will go toward the construction of a 45,000-square-

foot facility on the southwest corner of 11th Avenue South and 4th Street North in St. Petersburg, in the city’s Innovation District, and will also fall in the Redevelopment Areas and a federal Opportunity Zone. Pinellas County is providing $4.5 million in additional funding for the design and construction of the incubator, with more to be sought from Florida and private sector investors. Once completed in roughly three years, the incubator will be operated by the Tampa Bay Innovation Center, and feature a prototype lab equipped with 3D printers, a podcast studio, educational and collaborative space, a coffee shop and space for corporate innovation partners.

Finally, the success of Tampa Bay’s tech sector can also be measured by the high-tech companies that choose to move into the area. One example of a notable newcomer to the region is Ukraine-based software giant NIX United, which opened its new office in the First Central Tower building in St. Petersburg in October 2019. NIX United employs a global workforce of 2,000 people, and will be hiring an undisclosed number of additional employees to staff the St. Petersburg office, beginning with sales staff.

The company’s software solutions primarily serve the e-commerce, e-learning, and healthcare industries. St. Petersburg is also home to other major tech companies, such as Jabil, Intrinio and LumaStream.

But success in the tech and innovation sector is not just about having a good idea and getting funding. It’s about planning. “The biggest mistake we see startups make is not having a well-thought-out plan. A lot of startups have a great vision and know what they want to be, but they don’t know how to get there,” said Jamie Renee, CEO of Good Day Solutions. “We help them with the how. We help them identify the key activities they www.capitalanalyticsassociates.com

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ECONOMY OVERVIEW

The Tampa Bay region is home to almost a fourth of all Floridabased private companies.

need to focus on and establish the processes that will enable them to replicate success and scale. There are those that are great visionaries, but that does not mean they know how to activate their team in implementing their vision. What happens is these people will start a business, and then after a while they will begin to hit roadblocks. The reason for these obstacles is that they have not focused enough on building out their team.

A well-built team would allow these individuals to remove themselves from the day to day and instead focus on scaling the business.”

Daniel Greco, managing partner at Ark Applications, LLC, adds that sustainability is another key, even before a company can think about making money.

“There is a stigma that every new company has to attain immediate profitability from a financial standpoint at the very beginning, but that is not really the goal these companies should be running toward at first.

They should be hyper-focused on sustainability from a business perspective, while cementing its culture and retaining core employees. We believe these are some of the core elements of a framework to become a successful business.” Greco believes that building the right culture is another imperative for startups. “If we look at companies like PeerFit or Script, they have done a wonderful job of capturing a market opportunity, and have created successful businesses by building a great company culture. They have an emphasis on treating their employees with respect, giving back to 28 | Invest: Tampa Bay 2020 | ECONOMY

the community, and creating a culture of work-life balance. It is the emphasis on these smaller details that really differentiate them from their competitors.”

These companies also need to recognize when things aren’t working with an employee and make the right decision quickly, added Barnish. “The main mistakes we see startups make are not firing soon enough and hiring the wrong talent to begin with. Establishing a company culture early in a business’s evolution is more important than it has ever been, so one bad employee out of a couple can create a negative culture very quickly for a startup business. It is really important to spend time finding and hiring (and motivating) the right talent in order for retention to be meaningful and create a positive culture from day one.”

Looking ahead Even as the world remains gripped by economic turmoil brought about by COVID-19, trade wars and fears of recession, Tampa Bay continues to generate best-instate and country job creation that is keeping pace with a steadily growing population, contributing to a low unemployment rate that is on par with the Floridawide rate. Tampa Bay is also a center for global trade and a magnet for foreign investment thanks to the tireless efforts of several local business development organizations.

It is also a recipient of federal, state, and local aid to directly and indirectly bolster the local economy even

ECONOMY OVERVIEW

more. It is these factors, along with a prime location and excellent climate, that help to make Tampa Bay a top destination for businesses and employees. “From an economic standpoint, we will continue to see growth in the region, and the hope is that Tampa Bay will have a more focused effort on collaboration between the forprofit and nonprofit sectors. This collaboration will help both worlds bridge the gap between some of the systems and issues that commonly plague both sides,” said Merrill Stewart, CEO of Marketing & Business Solutions LLC. “Collaboration is the key. We are helping

companies (nonprofit and for-profit) build strategic partnerships to accomplish a better solution for our communities. The nonprofit business sector is one of the largest in the world. Our communities, causes, and business are stronger when we leverage expertise on both sides of the table. It means for-profit companies investing in community impact initiatives that drive change and non-profits being thought leaders to responsibly implement that change. We work to bring together and to help drive business success on both sides of any partnership – resulting in tangible and sustainable change.”

A big part of the region’s future will also be in the hands of the entrepreneurs in the burgeoning technology and innovation segment. Raising awareness of Tampa Bay’s offering is vital in ensuring the momentum continues. “There is so much tech popping up in places you would not expect, with innovation turning small meetup groups into companies offering smart, innovative ideas to make life easier. We need to keep it up, recognize who is here, and raise the awareness about what is in Tampa,” said Zachary Duffy, cofounder of High Tech Connect. “There is a wide array of interwoven connections in Tampa from other places such as Chicago or Silicon Valley. Everyone has connections everywhere. If we can capitalize on them, we can drive talent, other startups and big companies.

We are focused on remaining consistent, growing and helping more companies. At the end of the day, we decided to put this together because we saw the need to get brand awareness out there: startups that need a new place to talk, companies struggling to find talent, people struggling to find jobs. We wanted to build a community rooted in these needs, to get everyone in one place.”

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®

oundtable:

Female leaders in the Bay Tampa Bay’s female leaders present their views on the region’s advantages, encouraging sustainability and key projects that will help maintain growth and propel the area into the future.

Sandra Bradbury Mayor City of Pinellas Park

What efforts are being made to encourage environmental sustainability in the city?

In a partnership with the Wounded Warriors Abilities Ranch, we just started development on a new park called Lurie Park. This park is going to be completely accessible for all handicapped people, from children to the elderly, and will be geared toward our veterans.

We also just purchased a four-acre property that was a horse stable, which we are in the process of converting to a farm and is an extension of the existing Helen Howarth Park. Our goal is to work with the U.S.-based network of youth organizations 4-H and bring students to the farm to teach them how to sustainably raise and grow their own food.

How are you supporting the growth of local businesses?

Businesses come to us all the time because we have a relatively large amount of commercial area that’s available for development. The city council and voter referendum created a package of incentives that we could use to retain businesses that want to grow and expand. These incentives allow businesses the flexibility to move offices or add square footage to their buildings. We are one of the few places that has this ability. It is within our ordinances to allow our economic development manager and her team to offer incentives to local businesses, which revolves around how much they are growing and how many employees they will be hiring with the expansion. So far, the city council has provided seven packages to different companies that have grown in Pinellas Park.

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Ann Kulig

Executive Director Westshore Aliance

What are the most significant developments for the Westshore’s future?

Midtown Tampa, SkyCenter at Tampa International Airport and planned redevelopment at Westshore Plaza are important developments in the changing face of Westshore. The reconstruction of the Westshore Interchange is a catalyst investment that is a springboard to the next phase of Westshore’s growth. Access and location are critical factors in the success of any real estate development, so major changes to improve the transportation network will greenlight projects.

What can be done to ensure sustainable growth?

Transportation is one piece of it, but a continued focus on quality of life issues is a top priority for employees, employers and residents. A lot of our work is focused on improving walkability, providing more greenspace and creating a more urban environment. These are all amenities that both the current and next generation of the workforce wants.

How do you balance the potentially contradictory interests of the corporations and the local community?

I believe it is pretty easy because in the end people generally want many of the same things, whether you are a business person or a resident. Walkability, green spaces, those things are not new to us, and we have been leading the charge with the local government regarding changes to the city’s development codes, including design standards that place buildings closer to the street, creating street-front walkability, pedestrian activity, and a more urban environment.

ECONOMY ROUNDTABLE

Linda Olson

President & CEO Tampa Bay Wave

What special characteristics of the Tampa Bay Area attract venture capital?

They see that Tampa Bay is enjoying an economic boom, which makes it a very attractive place to start and grow a business. You can just look at all the real estate business happening, cranes are everywhere.

People want to be in a place that has momentum.

You hear projections that by 2027 there are going to be 30,000 people living in Downtown Tampa. When you are one of these early-stage tech companies, you like to be in those work-play environments that are attractive not just to companies but to the talent they want. Tampa Bay also has a lot of the talent that they are looking for, even with the tight job market we are experiencing. To induce investors and venture capital to come here to shop, we have to dangle a very attractive carrot. They have to believe that there is sufficient deal flow, quality companies and for out of state venture capitalists, probably companies that are slightly underpriced versus where they are located.

What should be done to help new small businesses and startups interconnect?

We have one of the most collaborative environments for entrepreneurs anywhere. We already have a head start on that. Putting the burden on all those entrepreneurs, businesses and startups to create the connectivity is probably not a winning formula, since almost by definition they don’t have the spare time to do all the extra networking. That is why organizations like Synapse are so important to the overall growth of Tampa Bay’s startup and tech communities.

Jill St. Thomas

CRO & Executive Director Tampa Bay Tech

How does Tampa Bay become the next Silicon Valley while also remaining a sustainable tech ecosystem?

First of all, a person can afford a house here! Seriously though, in terms of attracting particularly, young talent, we have to remain economically viable for them to consider this market. Above all, we are promoting the incredible opportunities available in Tampa Bay. We have so many different types of technology companies and we have a really unique landscape, from Ybor City to Clearwater to Downtown St. Pete.

What is the focus for the tech community in Tampa Bay over the next 12 months We want to build a tech community that feels radically connected. What I mean by that is, that whatever our people are looking for, we’re making it easy to find. If you are looking for talent, we’ll connect you to RNG Tampa Bay, our in-house corporate recruiter group. If you want opportunities for your team to give back, we’ll connect you with Think Big for Kids. We have a unique community that understands the benefits of working together and that seems to be really resonating with our members. Every year, we’re seeing how collaboration and connectedness is helping us grow, and that helps the entire market.

How can Tampa Bay attract more venture capital into the region?

This is 100% a storytelling issue. When we share the stories of companies like AgileThought and KnowBe4 with the community outside of Tampa Bay, we position Tampa Bay as a market that is flourishing and thereby, attractive, to investors. www.capitalanalyticsassociates.com

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City of Clearwater: The city of Clearwater is making a strategic push to become a center for business development and investment attraction, while maintaining its top-rated position as a beach destination. Its efforts and overall lifestyle offerings create an environment that is welcoming and resonating with investors, residents and visitors.

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Flourishing: The city of Clearwater is fostering an environment that is good for business, from established companies to startups While the city of Clearwater is clearly a sunny beach destination, it is much more than that. The coastal city has fostered a flourishing environment for business and investment that has spurred continuous economic strength, attracting companies big and small, including startups, that see Clearwater as an opportunity to grow.

The inviting climate in turn attracts talent to the city, and more young professionals are calling Clearwater home thanks to the high-paying jobs available in target industries that are especially positioned for growth: manufacturing, finance/ insurance, medical, business financial data services, software, professional services, and environmental sciences. Further incentivizing the influx of talent is the host of top-notch small business support services and entrepreneurial facilities, including Clearwater Business SPARK, a small business and entrepreneurial support network of which the city is a partner.

Clearwater is a community that offers an affordable qualify of life compared to other cities. From the Phillies spring training, world class performance venues like Ruth Eckerd Hall and the numerous parks and trails residents have plenty of choices to 34 | Invest: Tampa Bay 2020 | CITY OF CLEARWATER

spend their leisure time. Further enhancing their quality of life, residents have a variety of housing options from the urban lifestyle provided at the beach or Downtown, traditional neighborhoods or the convenience of living off of US19 with easy access to Tampa.

It all comes together in a perfect storm of conditions that is resonating with investors, who are keen to capitalize on the comparative advantages Clearwater offers compared to other major markets in the region.

“When we were looking at locations for The Ring, we looked at what makes Clearwater a more attractive market for startups,” said Daniels Ikajevs, chairman of The Ring Workspaces, which focuses on state-ofthe-art coworking spaces with an emphasis on health and wellness. “Clearwater offers lower real estate costs in comparison to Tampa and St. Petersburg.

We are geared more toward the startup culture, and because the cost of doing business in Clearwater is less than anywhere else in Tampa Bay, we thought we could use this environment to attract more startups.”

Sustainability in particular is a citywide goal.

Initiatives include the provision of a grant by the city of Clearwater’s Community Redevelopment Agency ( )

CITY OF CLEARWATER INTERVIEW

Fresh priorities Clearwater Mayor-elect Frank Hibbard won election for a second time in March 2020 and will start his term with a full agenda

Frank Hibbard Mayor-elect – City of Clearwater What will be your top priorities in your first year as mayor?

I will have four main priorities. 1) complete a strategic plan that starts with citizen input on what they believe should be the city’s priorities for time and resources; 2) complete a nationwide search for a new city manager; 3) improve our neighborhood services and code enforcement department; and 4) re-convene the business task force that I started in 2011 during my first term as mayor and institute many of the recommendations that were not followed through.

What initiatives will you implement to help solve transportation and infrastructure challenges?

Transportation is a regional issue and Clearwater needs to be a partner at the table. We do not have capacity to add lanes in Clearwater so we have to work on mass transit and making our roads more efficient at moving traffic. Timing of lights, ride-sharing and other modes of transportation should all be in the mix. We also need to look at our zoning and be open to pockets of density around mass transit hubs.

Besides transportation and infrastructure, what is the biggest challenge facing the city of Clearwater?

We have aging housing stock. Our newest neighborhood is Countryside and it is 50 years old. We need to see families moving into the city and make investments to rejuvenate our housing. This is not an easy task, but with the right environment it can happen.

To improve the housing stock, we need a multipronged approach. This includes: improving schools by partnering with the Pinellas County School system to encourage mentoring and encourage our businesses to invest in schools; safety in neighborhoods through solid police protection and traffic calming; strict code enforcement to

ensure that properties are kept up; great quality of life through libraries, parks, beach and recreation facilities; affordability, which means the city needs to provide efficient services; job creation, which means we need to attract new employers with better paying jobs; improved transportation; and a business-friendly environment that maintains standards but also is easy to work with.

What are your plans to attract businesses to the area?

I want to diversify our economy so we are not so reliant on the tourism industry. We have several technology companies located Downtown and we need to expand on this flourishing base. Medical will continue to be a vibrant industry with the aging demographics of the United States. www.capitalanalyticsassociates.com

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CITY OF CLEARWATER OVERVIEW

George Cretekos Former Mayor – City of Clearwater

As I complete my second term as Mayor of Clearwater, I appreciate how our residents and businesses have, on their own initiative promoted sustainability and environmental stewardship.

Before there had been a lot of talk about government’s banning single-use plastics in the region, Clearwater’s businesses began their own program to stop using plastic straws. It is now common to find many restaurants in Clearwater that do not have nor offer plastic straws or styrofoam to-go containers. This is a testament to how our residents are promoting sustainability and being good stewards of the environment.

( ) (CRA) to The Ring to meet the performancebased WELL building standards when renovating its office space, support for alternative transit options and the creation of a Sustainability Coordinator housed in the City Manager’s office, according to Amanda Thompson, the CRA’s director.

Economy A strong economy is necessary to achieve growth, and Clearwater has enjoyed an upward trend that in many areas outpaces the national economy. The city’s unemployment rate at the end of 2019 held low at 3.1%, better than the 3.7% national average. One contributor is Clearwater’s 2.3% job creation rate, which far outpaced the national average of 1.6%. The average household income is $72,509, and the city has the advantage of Florida’s coveted 0% state income tax.

In terms of jobs, Clearwater employs 53,565 people, according to the latest figures from 2019, across industries such as manufacturing, specifically in the defense and medical devices industries; finance; insurance; IT/software; utilities; professional, scientific, and technical services; and management. Clearwater residents in management earn the most, bringing home an average of $66,000 per year. Among Clearwater residents, the home ownership rate was 56.5% in Q3 2019, and the average property value was $296,648.

Contributing to Clearwater’s shrinking unemployment and increasing availability of good jobs is the presence of numerous major companies in the area and an everincreasing roster of new entities. Among the city’s notable corporate residents are BayCare Health System, AmeriLife, Heritage Insurance, Monin, Aerosonic, Lincare, Instrument Transformers/GE Grid Solutions – 36 | Invest: Tampa Bay 2020 | CITY OF CLEARWATER

The population in Clearwater is approximately 115,000.

CITY OF CLEARWATER OVERVIEW

A GE Manufacturing Center of Excellence, Marine Max, KnowBe4, and Bausch + Lomb. Most observers remain confident in the economy, despite talk of an eventual downturn nationally, especially in light of COVID-19, and questions related to the November presidential election. “We are pretty bullish on the economy for at least the next two to three years provided the political landscape remains static. We believe we will see continued growth, with higher housing values and more economic output, unemployment will continue to trickle lower and an increasing number of people will continue to move to this area,” said Bruce Lucas, chairman and CEO of Heritage Insurance Holdings, Inc. Capital improvements The hallmark capital improvement initiative in Clearwater, and Pinellas County in general, is the

Penny for Pinellas tax. The 1% sales tax sales tax on goods and services in the county paid by anyone who spends money in the county was originally passed in 1989 and went into effect in February 1990. Since then, the tax has been extended by voters three times.

The latest extension went into effect on Feb. 1, 2020 and will run through Jan. 31, 2030.

The 1% tax funds a variety of capital improvement projects throughout Pinellas County, particularly infrastructure projects such as streets and roads, bridges, stormwater system upgrades, and parks and other public facilities, all directed toward improving transportation, utilities, environmental preservation, and community vitality throughout Pinellas County.

The most recent extension set aside 8.3% of funds for the acquisition of land in support of affordable and workforce housing, as well as economic development capital projects throughout the county.

The affordable housing program under Penny for Pinellas aims to address the long-term need for an adequate quantity and quality of affordable housing to eligible seniors, families, and the local workforce countywide by stimulating the construction sector to build new units and rehabilitate existing units. The program will distribute funds to eligible development projects according to a three-tiered priority structure, but will generally prioritize mixed-income rental or affordable housing projects that preserve existing affordable housing stock or enhance such stock in areas with a demonstrated shortage of affordable housing.

Economic development The strategy to bolster Clearwater’s economic development is laid out in the city’s Economic Development Strategic Plan and supported by the economic development team’s partnerships with key stakeholders in initiatives designed to strengthen the local economy. The Strategic Plan aims to attract young professionals in higher wage occupations, expand the city’s office and industrial real estate tax base, and encourage business vitality – all keys to longterm economic sustainability. The plan’s approach to achieving these outcomes is centered around five subgoals: Land Use, Investment Climate, Business Retention and Expansion, Business Development/ Climate, and Talent and Place.

The Land Use goal encourages the development of the kinds of sites and buildings that will accommodate and attract more high-intensity job opportunities. In February 2017, the city adopted the US19 Zoning District & Development Standards ( ) www.capitalanalyticsassociates.com

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Market voices: Developing Clearwater

Amanda Payne

CEO Amplify Clearwater

(The Clearwater Regional Chamber of Commerce and the Clearwater Beach Chamber of Commerce) were not complete duplicates, but we shared about a hundred members. We were competing for dollars from tourist and visitor experience programs that overlapped. The challenge in bringing the two chambers together was to build something unique and new, and to bring the business community together. We are not in separate municipalities and all our challenges are the same: bringing development to Downtown, traffic, roadways, and infrastructure. There are local, countywide and state-level issues that the business community can unite behind, like the minimum wage initiative. The vision for Amplify Clearwater is to highlight how great Clearwater is for investment. The fact is that we have no state income tax, so you get more bang for your buck if you move here.

Over the past year, we have been focused on the development of a comprehensive business attraction campaign. Utilizing new property search and demographic tools, new methods of engagement and use of targeted engagements to drive developer interest, we are focused on those areas of the city ready for redevelopment and investment to support high value primary industries: US19 corridor, our industrially zoned areas, and the city’s Opportunity Zone located in the Downtown area. We also understand the importance of a variety of housing options to support the needs of a diverse and growing workforce so we’ve aligned our efforts with those of the county to ensure job growth and workforce housing development occurs in transit corridors.

Amanda Thompson

Director Clearwater Community Redevelopment Agency

Denise Sanderson

Director Clearwater Economic Development & Housing

CRAs are under constant scrutiny, so we have to make sure that we are telling our story, following the appropriate guidelines and spending the money as it is designed to be spent. We understand that Downtown Clearwater is still sometimes perceived as vacant or unwelcoming, and we focus on sharing the experiences that show we have a vibrant, arts-infused and welcoming Downtown. There is a wonderful experience waiting for everyone who wants to come to the Downtown area, and we aim to attract investors and business owners who are urban pioneers ready to take advantage of our potential as the next great Downtown in Tampa Bay.

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CITY OF CLEARWATER OVERVIEW

( ) for a seven-mile stretch of US19 and its major cross streets. This provides a development code that allows more uses, simplifies parking requirements, addresses incremental improvement to existing development and allows significantly more intensity compared to previous regulations without establishing density limitations. Desired uses also are clearly identified. A similar approach to land use development was incorporated into the Clearwater Downtown Redevelopment Plan. The US19 Corridor offers high density office, light industrial, residential and mixed-use development opportunities and provides businesses high visibility complemented by local amenities such as close proximity to two international airports, railroad lines, Port of Tampa, restaurants, shopping and many residential options for employees.

Investment Climate relates to developing policies and tools that will bring more private investment and jobs into the city. Business Retention and Expansion is centered around creating an environment that promotes the prosperity and growth of existing businesses, such as the city’s annual engagement with more than 300 business leaders in an effort to address their business needs and provide resources to help them surmount barriers and achieve growth.

Business Development/Climate involves supporting the city’s entrepreneurship and innovation ecosystem and marketing Clearwater to target industries.

Finally, Talent and Place revolves around supporting regional partners in workforce development, attraction and retention of talent and improving existing infrastructure and amenities throughout the city and investing even more in new infrastructure.

A salient example of Clearwater advancing toward its Business Development/Climate goal is its partnership with Clearwater Business SPARK, a network of service providers dedicated to the development of small business, entrepreneurship, and innovation throughout the city. The SPARK network gives clients access to customized solutions at every stage of the business development process.

For example, those interested in starting a new business can go to SPARK for mentoring, coaching, seminars, workshops, market research tools, and more – many available in both English and Spanish.

Established businesses can also benefit from SPARK’s services and guidance when it comes to expanding into international markets, determining financing options, or enhancing marketing strategies. Some of the key partners of the SPARK network include Amplify Clearwater, the Clearwater Economic Development and Housing Department, Clearwater Public Library System, Florida Small Business Development Center at Pinellas County Economic Development, Florida State Minority Supplier Development Counsel, Prospera, Pinellas County SCORE, Tampa Bay Black Business Investment Corporation, Florida Business Incubator and St. Petersburg College.

Imagine Clearwater One of the biggest developments underway in Downtown is Imagine Clearwater, a dynamic, community-driven plan for a successfully revamped waterfront. Imagine Clearwater involves anchoring the waterfront with inclusive spaces that flexibly accommodate a larger variety of users and activities year-round, while optimizing its natural features

CITY OF CLEARWATER OVERVIEW

that can make the area a world-class public space.

Beyond impeccable views, the redevelopment aims for greater connectivity between the waterfront and the Downtown’s main corridor on Cleveland Street, including a grand gateway, park space, and entertainment venue. The city also owns two parcels that are strategically situated on the bluff, which will serve as catalysts for further redevelopment: the sites of the former Harborview Center and the former City Hall.

The city plans to solicit private redevelopment of both parcels into mixed-use spaces consisting of rental units or a hotel complemented by high-value commercial space and possible cultural components. Residents will have an opportunity to shape the exact uses of both parcels through a public referendum. The Imagine Clearwater project also includes renovations to the Main Library along the bluff to accommodate a broader array of community uses and events, thus enhancing its capacity as a gathering space and better integrating Osceola Avenue and the new Coachman Park.

The city’s waterfront redevelopment strategy will also incorporate all modes of transportation, including pedestrians and cyclists, Jolley Trolley, Clearwater Ferry, Pinellas Suncoast Transit Authority routes, connections to the Pinellas Trail, and access for cars and boaters. Redesigning and redeveloping Coachman Park

Downtown Clearwater is home to many cultural landmarks like The Nancy and David Bilheimer Capitol Theatre.

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into a world-class public attraction will incorporate best practices and features from parks in major cities around the world, making the park and the surrounding waterfront a place that attracts local and international visitors and investment capital. Imagine Clearwater is still in the developmental stage, but is moving right along, having reached the 60% design checkpoint, with 90% drawings coming in summer 2020.

North Marina area As Imagine Clearwater ramps up, residents can look to the North Marina area as an existing example of what can be accomplished when the city uses public investment to encourage private investment.

The City of Clearwater provided funding to a pair of projects through the HOME Investment Partnerships Program: the construction of the 76-unit Garden Trail Apartments, which provide affordable workforce housing; and the building of 12 single family homes as part of the North Garden Avenue Project. The city also purchased the historic North Ward School for $1.8 million in 2019, with hopes of attracting a private investor to renovate and revamp the landmark that had been an important facet of the neighborhood from its opening in 1915 to its closure in 2009. Finally, one of the city’s biggest undertakings in the North

CITY OF CLEARWATER OVERVIEW

Thomas Jewsbury Executive Director – St. Pete-Clearwater International Airport

Our master plan has a focus on sustainability. It was important to us that we also championed another master plan that’s on the way, called the Gateway Master Plan. It looks at this area of Pinellas County and how the future infrastructure that will be developed, including how other transportation modes will interact with the airport. It also identifies potential areas of the airport that could be converted for other transportation modes. The Gateway Master Plan is being drafted by Forward Pinellas.

Marina area to date is the $6.5 million enhancement to the Seminole Street Boat Ramp, which consists of landscaping, floating docks, a kayak launch, new parking areas, public walkways, public benches and more green space.

All of this investment by the city has already begun to pay off as private investment begins to roll into the area. Consider Clearwater Brewing Co., which opened in May 2019 on the former site of a 1950s-era auto garage. The owners received $35,000 in the

form of a loan to grant from the city to help complete the rehabilitation of the garage into their dream brewery through the Community Development Block Grant Facade Improvement Program. The program is designed to help businesses in low- to moderateincome areas as part of the city’s overarching goal of encouraging investment wherever it is needed most, which tends to set off a chain reaction of additional private investment and improvements in the area.

That desired chain reaction appears to have been set off in the North Marina area, with a flurry of private investment in residential real estate development.

Planned construction at the marina runs the gamut from new luxury condos to multi-family and single family residential units. New housing will bring more residents into the area, which will provide a growing customer base for area businesses, continuing the chain reaction of investment.

Tourism As Clearwater’s business economy becomes more dynamic and diversified, it also remains a vibrant tourist destination. Pinellas County’s tourism industry employs roughly 10% of the county’s population. Clearwater Beach was named the No. 1 beach in the country according to TripAdvisor’s Traveler’s Choice Award Top Beaches list in 2016, 2018, and 2019. What makes this award so meaningful is that it is based on TripAdvisor user reviews, and the things that users love about Clearwater Beach – its pristine white sand, its warm Gulf Coast waters that seldom dip below 70 degrees, the abundance of nearby luxury resorts and boutique hotels, and the proximity to a wealth of attractions like the Clearwater Marine Aquarium, Pier 60 and a selection of great restaurants – are the products of the community working together www.capitalanalyticsassociates.com

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CITY OF CLEARWATER OVERVIEW

Daniels Ikajevs Chairman – The Ring Workspaces

When we were looking at locations for The Ring, we looked at what makes Clearwater a more attractive market for startups.

Clearwater offers lower real estate costs in comparison to similar Tampa and St. Petersburg markets. We are geared more toward the startup culture, and because the cost of doing business in Clearwater is less than anywhere else in Tampa Bay, we thought we could use this environment to attract more startups. As a startup you try to save money every step of the way until you reach the maturity stage of the business, so real estate is one of the biggest values that Clearwater can offer. The overall business environment in Clearwater is also in line with the four principles of The Ring, which are health, innovation, sustainability and productivity.

to create an unbeatable beach experience.

In addition to the development of these attractions and recreational amenities, the No.1 beach accolade was earned thanks to the persistent conservation and sustainability efforts of local individuals and institutions, which have increasingly emphasized resilience and environmental sustainability throughout the community as the necessary core of its tourism success. “We need to focus on maintaining our recognition as the No. 1 beach in the nation, and we can’t accomplish this by just promoting ourselves as No. 1. The mission now is to make us the No. 1 beach because we are ocean friendly. We can do this by eliminating trash and doing things like stopping the use of single-use plastics. At the aquarium, we have gotten rid of all plastic bottles. Our water bottles now are all biodegradable and our spoons are all made of bamboo as opposed to plastic. We are trying to be an example of an environmentally responsible organization, and teaching people the right way to live in a model of environmental sustainability,” said Frank Dame, CEO of Clearwater Marine Aquarium.

This local passion for ecotourism is exemplified

by Ocean Allies. Founded by residents and business owners of the Clearwater Beach community who were concerned about protecting the area’s natural resources, Ocean Allies is a nonprofit organization dedicated to integrating the complementary goals of conservation, tourism, and business through public education and other grassroots initiatives.

Businesses can partner with Ocean Allies to become certified ocean-friendly businesses by meeting 42 | Invest: Tampa Bay 2020 | CITY OF CLEARWATER

certain sustainability-oriented criteria.

An important development in the hospitality industry could further bolster the city’s tourism advantages. Local entrepreneur Dr. Kiran Patel took over the troubled JW Marriott Hotel development on Clearwater Beach in late 2018. Patel, who owns the Wyndham Grand Clearwater Beach hotel among others, has said he is determined to see the project completed and to deliver the area’s first five-star hotel. Patel and his wife, Dr. Pallavi Patel, are well-known throughout the region as doctors and philanthropists and have been instrumental in Clearwater’s development. In January 2019, Dr. Patel even had a road renamed in his honor.

The Church of Scientology also serves as a valuable source of tourism dollars for the city, with members both domestic and international flocking to the Church’s international headquarters to visit and participate in retreats and other events at landmarks like the Fort Harrison Hotel and the Flag Building.

Healthcare Tourism may take the spotlight but other industries are prospering in Clearwater, with healthcare a leader, and BayCare Health System at the forefront.

Headquartered in Clearwater, BayCare is the city’s largest single employer, providing jobs for 28,400 people. In addition to jobs, the health system generated $462 million in local community benefit and $6.62 billion in regional economic impact in 2018.

There is movement on the academic side of the ledger as well, with Nova Southeastern University

CITY CONSTRUCTION OF CLEARWATER OVERVIEW

(NSU) opening its new Tampa Bay Regional Campus in Clearwater in September 2019. The 311,000-squarefoot facility boasts state-of-the-art classrooms, spacious common areas, and a massive two-story fitness center. The new $200 million campus in Clearwater is the latest of many for NSU, which has been providing a variety of educational programs in the region since 1991.

While NSU revolutionizes healthcare education in Clearwater, Clearwater-based OnMed is preparing to revolutionize healthcare across the country and beyond with its self-contained virtual care kiosks.

The unstaffed pods are designed as a means of expanding access to healthcare to more people, and can easily be installed on busy college campuses, in rural areas, in airports, banks, construction sites, and even emergency units where they can help to relieve overburdened emergency staff. Inside the kiosks, patients will be able to undergo secure video consultations and examinations by certified healthcare providers and can have their prescriptions filled by the automated dispensary.

Real estate Another leading segment is real estate, where Opportunity Zone legislation has opened up investment opportunities. The Opportunity Zone program is a component of the 2017 Tax Cuts and Jobs Act, which aims to incentivize investment in census tracts that have been identified by the Treasury Department as economically distressed.

The key incentive for Opportunity Zone investment is the ability of investors to contribute an uncapped amount of capital gains in a broad range of projects including real estate and operating businesses, and then defer or even mitigate their capital gains liability by holding these investments for prescribed periods.

Clearwater’s Opportunity Zone, Census Tract 259.00, covers 851 acres, the northern half of which is an Activity Zone due to its existing designation as a Community Redevelopment Area (CRA), and the southern half of which contains a mixture of residential, office, and commercial land uses. The city offers additional unique incentives within the CRA, such as grant funding to owners of commercial property who wish to make improvements to their properties.

Investment may be further incentivized by the fact most of the Opportunity Zone is also a state-designated Brownfield Area. The rich incentives for investment in the Opportunity Zone and the CRA, paired with the opportunities for higher-density development, set the stage for an influx of investment capital. “Downtown

Scott Perry CEO AmeriLife

What are the main market trends for your industry?

The biggest supporting trend for our business is demographics: there are more people living into retirement age. There are 10,000 people turning 65 every day and that’s our market, people between 62 and 75 years of age. Since 2014, baby boomers have started turning 65 and that demographic trend is going to continue driving positive momentum for our business.

How do you ensure your business will remain sustainable for the foreseeable future?

Sustainability comes down to our value proposition.

We continue to drive value for our key manufacturing partners by distributing their products and creating value for them to develop more competitive products that zero in on consumer needs. There is also the value proposition to our agents, advisers and brokers. We provide them with the right products, the right support to ensure that they are operating within the rules of the regulatory environment and that they know how those products are meant to be sold, and that they are well-trained to understand the clients’ actual needs.

Our last constituency is the end user. If we know that we are providing value to our manufacturers and agents and advisers, ultimately the consumer will benefit. Most of our revenue is generated through third-party distributors. We don’t necessarily have day-to-day interaction with the consumer in those cases. But if we do the things I mentioned above, the consumer is going to get the right product, sold by a reputable, intelligent, compliant, well-trained agent, and that agent is going to be able to match the right product to the right need.

What are the benefits of being a part of the Clearwater community?

Clearwater is a perfect place for a middle market company like us because of the relatively affordable rents and the talent in the region is abundant as well as the fact that there is more talent moving into the marketplace. www.capitalanalyticsassociates.com

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CITY OF CLEARWATER OVERVIEW

Clearwater is the perfect candidate for Opportunity Zone investment. There are several undeveloped parcels and older commercial buildings that could easily meet the required investment threshold for improvements. New businesses in the hospitality, medical, multifamily housing and tech industries would also do well. The CRA has several properties that will be available for redevelopment in the next two years in the Opportunity Zone. We are building new housing for our tech workers and hospital employees in Downtown,” said Amanda Thompson, director of the City of Clearwater CRA. Investors looking to identify if a property is located within an Opportunity Zone can visit myclearwater. com/Great4Biz, where an interactive suite of tools is hosted allowing users to determine property data such as land use, zoning and special incentive areas and districts, like an Opportunity Zone, that a parcel may be located within. Users can also view demographic and workforce data and pull customizable reports.

Transportation Like many other growing municipalities, transportation remains an ongoing issue. Upward of 50,000 cars carrying families to Clearwater Beach travel along the Clearwater Memorial Causeway every Spring Break season, according to city leadership. Alternatives like public transportation can go a long way to alleviating congestion, said former Mayor Cretekos. The city has stepped up to address these sorts of traffic issues through the innovative Complete Streets program. Clearwater has targeted two of its most problematic arteries for improvement under the Complete Streets program: Fort Harrison Avenue and Drew Street. Drew Street has historically been Clearwater’s most dangerous downtown street with 1,700 crashes between 2013 and 2017, and Fort Harrison Avenue follows with 654 crashes during the same period. The city has conducted a comprehensive study of the demographics and physical environments surrounding both streets, and redesigned them to be more attractive, offer better sightlines and longer decision times for drivers, and meet the city’s long-term sustainability goals by adding bike lanes and increasing walkability.

Residents and visitors can also make use of public transportation offerings like the Clearwater Ferry, for which riders can make reservations weeks in advance and ride for a fee of $4 each way, or the Jolley Trolley, which is free to ride during Spring Break season.

Finally, there are two renowned trail systems running through Clearwater that can be enjoyed on foot or bike: The Druid Road Trail running from Clearwater Beach 44 | Invest: Tampa Bay 2020 | CITY OF CLEARWATER

Clearwater is home to a multitude of arts and culture events like the annual Sun N’ Fun Festival.

all the way to the City of Tampa, and the Pinellas Trail with its 53 miles of continuous trail that is enjoyed by 75,000 people every month.

One long-term transportation improvement project is set to begin its final phase. In 2022, the Florida Department of Transportation will begin redevelopment of the US19 roadway from north of SR580 to Curlew Road. The project will eliminate lighted signalization, provide limited access roadways, and improve traffic flow and pedestrian safety. Set to begin in 2022, several entities and organizations are involved in the revitalization of US19, including the Florida Department of Transportation, Forward Pinellas, and the Pinellas County government. The revitalization of Highway 19 and other roadways in and around Clearwater is key, as they connect the city to major travel hubs, including two international airports (Tampa International Airport and St. PeteClearwater International Airport), Port Tampa Bay, and the Clearwater Subdivision rail line operated by CSX Transportation. It’s proximity to these major terminals

CITY OF CLEARWATER OVERVIEW

Linvatec.

The growth of the manufacturing sector in Pinellas County is based on the foundation of an elite manufacturing workforce that receives world-class training from institutions like Pinellas Technical College and St. Petersburg College (SPC). Students can receive instruction in areas like CNC machining, welding, mechatronics, and supply chain management from SPC, Hillsborough Community College, and Polk State College, all of which are members of the College Alliance for Advanced Manufacturing. Workforce training is also available through the National Aviation Academy.

and routes posItions Clearwater as a significant player in both the private travel/cruise and commercial shipping markets.

Manufacturing Of the 58,206 manufacturing employees working throughout the Tampa Bay region, more than 30,000 (53%) are employed in Pinellas County. This figure provides a strong indication of the already enormous footprint of the manufacturing industry in Pinellas, and the industry continues to grow throughout the county, including in Clearwater. Pinellas already has the largest manufacturing employee base of the eight counties in Tampa Bay, and has the second-largest base in the state of Florida. Jabil Circuit, a Fortune 500 company and one of the world’s leading companies in the manufacturing services industry, is located in Pinellas, along with other notable entities like Aerosonic, Honeywell, Raytheon, Lockheed Martin, GE Grid Solutions, Baxter Healthcare, Johnson Controls, Monin Gourmet Flavorings, and Conmed

IT/Software As the world becomes increasingly connected, cybersecurity becomes paramount. This is an area that Clearwater has established businesses operating within. The jewel in the city’s infosec crown is newlyminted unicorn company, KnowBe4, which also happens to be the world’s largest security awareness training and simulated phishing platform. KnowBe4 reached $1 billion in total valuation in 2019 following a $300 million round of investment by NY-based investment firm, KKR, which it plans to use to further develop its platform and expand globally on top of its existing customer base of 25,000 organizations accounting for $100 million in recurring revenue.

Another of Clearwater’s cybersecurity success stories is Equitus Corporation, a producer of private AI and machine learning systems designed for those clients who are wary about storing information on the cloud.

Originally formed in Washington D.C. as a consulting firm for military special operations, the company took its limited R&D capital and moved to Clearwater, primarily for its affordability. The military is Equitus Corporation’s largest client, but the firm has recently made inroads with private sector businesses in the healthcare, legal, and retail industries, and has gone from zero revenue when it first moved to Clearwater a few years ago to now breaking $120 million.

Finally, the world’s top cybersecurity professional organization, (ISC)2, offers cybersecurity training and certification programs to ensure that industry professionals are equipped to combat the constantly evolving threats faced by the cybersecurity community.

(ISC)2 also plans to construct a video production studio in its Clearwater headquarters where it will produce content for the courses featuring some of the top minds in the field. The presence of companies like (ISC)2, Equitus Corporation, and KnowBe4 not only reflects the region’s affordability for businesses, but also demonstrates the area’s ability to attract top minds and talent. www.capitalanalyticsassociates.com

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Legal: From medical marijuana to gun control, tax cuts to Opportunity Zones, lawyers in the region are busy, and look to stay that way as the new decade launches. Host to Florida’s oldest law school and one of its oldest firms, the state’s rich legal tradition is well-entrenched, creating a favorable environment for tackling the leading issues of the day.

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Evolution: The legal landscape is evolving, with new laws on the books related to texting and taxes, and marijuana still front and center The legal sector in Tampa Bay enjoyed a busy year in 2019 that continued into the new decade, although COVID-19 slowed down activity in the first months of 2020, as in all segments of the economy. Lawyers in the region, which hosts Florida’s oldest law school and one of the state’s oldest firms, are tackling some of the toughest legal issues of the day, including the ongoing tension arising from Florida’s attempts to regulate its medical marijuana industry and marijuana’s ongoing illegality under federal law, as well as the thorny issue of gun control in a state that has endured numerous highprofile mass shootings in recent years.

Lawyers are also continuing to grapple with the evolution of the tax landscape under the 2017 Tax Cuts and Jobs Act, both as far as their own tax liability is concerned in addition to that of their clients. Firms and individual attorneys are still understanding how they are taxed under the Act, while the Opportunity Zones legislation continues to offer a fascinating prospect for real estate lawyers and their clients, albeit a difficult one to really get off the ground.In addition to navigating new legislation, attorneys in the Tampa region are advancing initiatives to enhance diversity and inclusion within the region’s legal market, following and building on earlier efforts by the Florida Bar. 48 | Invest: Tampa Bay 2020 | LEGAL

History The history of legal practice and legal services in Tampa Bay is long, and is intertwined with the history of Tampa Bay – and the State of Florida – in general. Tampa is home to the state’s first law school, Stetson University College of Law, which opened its doors on Oct. 2, 1900, to a class of five students. Today, the law school has grown in terms of people and prestige, with a student body of over 1,000 and some of the nation’s highest ranked LL.M. programs in advocacy, elder law and international law.

Predating Stetson’s establishment is the founding of Florida’s oldest law firm, Macfarlane Ferguson & McMullen (MFM), opened by Hugh Macfarlane in Tampa in 1884. Chester Ferguson joined upon graduating law school in 1930. The firm also has a Clearwater office, founded by J. Tweed McMullen in 1946, that merged with the Tampa office in 1993. The Clearwater office has been heavily involved in the development of the Pinellas County community, both before and after the merger.

The firm and its partners were instrumental in helping to develop the West Tampa cigar industry as well as expanding the Florida state university system. There is also a rich history of charitable donation that has helped to fund the performing arts and other cultural landmarks throughout the region. ( )

LEGAL INTERVIEW

Committed Regional dynamism and area’s phenomenal growth in population and economic diversity are among leading attractors

Douglas Wright Operations & Finance Partner – Holland & Knight What factors encouraged the firm to make such a commitment to the Tampa Bay region?

Tampa Bay, like all of Florida, has experienced phenomenal growth. It is a dynamic region with great educational institutions, including the University of South Florida, the University of Tampa, Stetson University, Florida Polytechnic University, and St. Leo University. People are attracted to this area by the relatively low cost of living and the great quality of life the region offers. The influx of people in turn provides us with a deep local talent pool. The growth of sectors like financial services, IT, and healthcare have contributed both to the region’s economy and to the success of our firm in this region.

What are the operational strengths of the Tampa Bay office?

The law office has well-respected lawyers in the corporate, litigation, real estate, tax, and private wealth services areas. The firm’s long-standing reputation for providing the highest quality legal services is a decided advantage in this market. That said, we have a flexible approach to work distribution and always seek to find the best-qualified lawyer from across our office network to serve our clients. The centralization of the support functions in one location improves our efficiency and effectiveness. Further, the operations center has an open-plan seating design that encourages interaction and collaboration for our staff.

What challenges does the firm face in its Tampa Bay operations?

The growth of technology has had a dramatic impact on the legal sector over the past 10 years. We expect this trend to continue with artificial intelligence performing more and more tasks that were previously carried out by professionals. Clearly, lawyers will still be important, but their roles will be slightly

different under the new business model. This shift will have an impact on our operational model because we will need more technology specialists and project managers to support the evolving needs of our clients. The challenge is to find the right balance between working as efficiently as possible today, and simultaneously preparing ourselves for tomorrow.

What is your outlook for Tampa’s legal sector in 2020?

I don’t see any signs to suggest that a recession is imminent. This bullish view is reflected in the firm’s regional growth plans. During Q120, for example, we will expand a portion of our current operations function.

We also are in discussions with other lawyers in Tampa about joining the firm. www.capitalanalyticsassociates.com

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LEGAL OVERVIEW

Marie Tomassi President & Managing Shareholder – Trenam Law

I am a strong believer that diversity in leadership in all fields is healthy. This generally provides positive forward momentum for every business because it opens the realm of thinking and ways to approach issues. Whether these are day-to-day decisions, longterm planning or anything in between, we all have our own views and thoughts on how to approach things. The variety of ideas that emerge when you promote any diverse candidate can be extremely useful for a business. When a business publicizes or recognizes it on a public forum, that reminds other businesses and institutions, where diversity might not be top of mind, that this is going on in the community and that they should be more intentional in their efforts to promote diversity.

drugs and to mitigate the confusion that can result ( ) Current landscape Some important new laws went into effect in 2020, from doctors’ notoriously inscrutable penmanship. including updates to laws pertaining to cellphone use There are exceptions carved out for extenuating while driving, with so much as holding a phone now circumstances, such as an electrical failure, to ensure prohibited in school zones and active work zones, that people aren’t left without reasonable access to regardless of what you’re doing with it, though hands- their prescriptions in these cases. The state has also raised its minimum wage – not to free use is still permitted. In the often-cited $15 per hour, but addition, texting and driving to $8.56 per hour ($5.54 for tipped has now been made a primary employees), or a 10-cent increase offense, with first-time violators over 2019’s minimum wage. subject to a $30 fine plus court There were also some important costs, and a $60 fine and three developments in the ongoing points on your license if you’re body of state law addressing caught texting in a school or medical marijuana and its nexus work zone. “Florida has been with federal drug laws. First, significantly behind the rest of U.S. District Court Judge Robert the country in limiting texting Hinkle threw out Louis Del Favero and driving. In fact as of July 1, Marc Matthews, Orchids Inc. (Louis Del Favero)’s Florida legislation finally made Matthews Injury Law claim that Florida Department texting and driving a primary of Health officials violated the offense, where in other states this has been a primary offense for at least 10 years,” firm’s constitutional rights by denying it a potentially said Marc Matthews, managing partner at Matthews lucrative medical marijuana license under the Florida Injury Law, in an interview with Invest:. “Florida needs law that legalized medical marijuana in 2016. The to implement laws to ensure that drivers are doing judge based his ruling on the fact that marijuana, what they should be doing to make the roads as safe though legal for medical use in Florida, is still illegal as possible, especially for the safety of pedestrians, under federal law, and therefore Louis Del Favero is not entitled to due process protection under the 14th bicyclists and other vehicles.”

Florida has also made an important change to the law amendment to the constitution in relation to a license governing prescriptions, and now requires healthcare to dispense medical marijuana. According to Judge providers to send all prescriptions electronically in Hinkle, if marijuana was not federally prohibited, order to better track the distribution of prescription then Louis Del Favero would have a potential claim

Florida needs to implement laws to ensure that drivers are doing what they should be doing.

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CONSTRUCTION LEGAL OVERVIEW

that it had a property interest in the license that was protected by the 14th amendment and, therefore, any procedure used to deprive the firm of that right would need to provide due process; however, since marijuana is contraband, it is not possible to have a constitutionally protected property interest in it.

Louis Del Favero appealed Judge Hinkle’s decision to the 11th U.S. Circuit Court of Appeals in December 2019, stating that it is possible to have such a property right despite the conflict with federal law, and that the District Court judge ruled in error.

While state and federal law continue to clash where medical marijuana is concerned, the related hemp industry in Florida is faring far better. The farming of hemp and the production and sale of hemp products, such as the explosively popular cannabidiol (“CBD”), became legal statewide on July 1, 2019. The Florida Agriculture Department is hard at work creating rules and regulations for the hemp industry that is burgeoning in the wake of legalization. Some elements of the new regulatory framework include a new Florida hemp logo (similar to the famous “Fresh from Florida” logo); regulations and permits for crop cultivation, CBD product manufacturing, and hemp-infused consumables; and strict standards for product safety that will apply to both humans and pets. Legalization of hemp and hemp products in Florida follows the federal legalization of CBD under the 2018 Farm Bill, with one of the stated goals of the state law being to provide better oversight of the CBD products being sold to Floridians. Up to this point, there have been numerous instances of so-called CBD products containing numerous harmful additives and little if any actual hemp. In the absence of a robust regulatory framework, it is difficult to weed out these fraudulent products, but under the new regulations the Department of Agriculture could issue cease-anddesist letters to noncompliant producers. Legitimate CBD producers welcome the new rules, claiming that better oversight will actually reduce competition within the state by eliminating charlatans seeking a quick buck, and leaving a smaller number of legitimate producers in the field. The hemp industry is continuing to grow and evolve, and the law will likely need to follow suit over the next few years, but this is a strong first step.

Another part of the legislative landscape that has had a significant impact on Florida in recent years is the legislative framework governing the purchase, ownership, and use of guns. Following the highprofile mass shooting at Parkland’s Marjory Stoneman Douglas High School in 2018, Florida passed a “red

Hala Sandridge Partner Buchanan Ingersoll & Rooney PC

How is the firm preparing for the next generation of legal professionals?

Every company has to manage their external and internal sustainability, with a focus on the next generation of the workforce to optimize for long-term success. We at Buchanan are continuously building that next generation of attorneys who are going to continue the work of the senior leaders after they retire. We have strong succession plans in place as well as various programs that help those who are not yet at partner levels become stronger in their practice, better at business development and immersed in the clients’ businesses.

I have noticed that many law firms do not plan for the future workforce and for retirement of their more senior partners. It is crucial for continuity of business to have attorneys trained and ready to pick up responsibilities and relationships. The next generation needs to be ready to sustain the growth that the company has accomplished and continue to take advantage of this market. When our attorneys are near retirement age, we have a conversation with them to make a plan for their retirement. We require our attorneys to take on these young people and integrate them with their clients so that the relationship continues smoothly after they have left.

What is the state of the job market for law students nearing graduation?

The job market for law students has seen a bit of fluctuation over the past several years and right now there are many opportunities for fresh law school graduates. Three years ago, we were not hiring too many law students shortly after graduation, but that has changed. We have hired a number of past summer associates upon their graduation and continue to seek out talented graduates. I cannot say enough great things about this next generation. They have their heads on straight, are incredibly goal-oriented and are willing to learn. www.capitalanalyticsassociates.com

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Bill Schifino Tampa Office Manging Shareholder Gunster

What is the landscape for law firms in Tampa Bay? There is plenty of legal work in Tampa Bay for quality law firms and competent lawyers. I have been in this marketplace for 33 years, and the way law firms interact with one another has relatively remained the same.

The law firms in this region play well together, and we refer work back and forth to one another because we sometimes have inherent conflicts in our cases.

For example, if there is a business litigation case that involves multiple parties and the lawyer can’t represent them all, that lawyer will call other lawyers who may have been on the other side in a similar case in the past but who are capable and competent. So while I may have a case where I’ll see a credible law firm on the other side, one day they may be joining with me to help defend another group on a different case.

How does Gunster serve the community?

A law firm cannot attract the right talent without a commitment to community service, service to the profession and pro bono work. It is critically important that we as professionals give back to those less fortunate.

Within the Florida Bar, a big focus is access to justice. In the criminal justice system, if you’re indigent then you are constitutionally entitled to a public defender, but what if you are someone that just really cannot afford a lawyer and are on the cusp of being below the poverty level? What happens if that person all of a sudden has a traumatic event in their life, and cannot get free legal service? We need to address how we as a profession can make certain that those people are being taken care of.

What makes the Tampa region attractive?

I’m very proud of the Central Florida market. When you look at what is happening on this coast, from Naples to Fort Myers to Pinellas to Clearwater and St. Petersburg up into Pasco, the Tampa Bay Region is incredibly dynamic. It is one of the most exciting markets in the country right now and a great time for people and businesses to be apart of it.”

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flag” law authorizing the confiscation of firearms from individuals found to pose a credible threat to themselves or others. Not long after its passage, Jefferson Eugene Davis, a Gilchrist County Sherriff’s deputy, challenged the law as vague, overbroad, and in violation of his due process rights when the Sheriff’s Office used it to obtain a risk protection order against him and take his guns for up to one year. A district court judge approved the application over Davis’s objections, and the 1st District Court of Appeals subsequently denied his appeal, saying that “the prevalence of public shootings, and the need to thwart the mayhem and carnage contemplated by would-be perpetrators does represent an urgent and compelling state interest,” and that the red flag law therefore passes the “strict scrutiny test” that applies when a statute impairs the exercise of a fundamental, constitutionally protected right.

Tax reform The 2017 Tax Cuts and Jobs Act (the Act) is now a couple of years old, and it has already begun to impact businesses and individuals in Florida and across the country. Law firms have a particularly interesting relationship with the new tax law in terms of how it affects how individual partners and the firm itself are taxed. The Act introduced new restrictions on state income tax deductions that could potentially expose more attorneys’ incomes to federal income tax. On the bright side, for married attorneys with adjusted gross incomes below $315,000 filing jointly with their spouses, or single attorneys earning below $157,700, the new business income tax deduction can be relied upon to offset their higher tax liability substantially, if not entirely. This new deduction will generally not be available to married attorneys making more than $415,000 or single lawyers earning at least $207,500.

As for the firms themselves, gross revenue and whether the firm operates as a flow-through enterprise are determining factors impacting the Act’s bite.

Partners of flow-through firms with income below the threshold now qualify for a new pass-through deduction on their flow-through earnings – those earning above the cap can’t take the deduction. Other aspects of the new tax paradigm that are being felt by law firms include: lawyers are no longer permitted to deduct meal and entertainment expenses; transportation benefits are no longer deductible by the firm, and are therefore less likely to be offered; wages paid to employees on family and medical leave are now deductible by their firms, incentivizing more generous medical leave policies; and business interest expense ( )

LEGAL INTERVIEW

Local expertise Traditonally, specialty services have been sourced from larger markets. That is changing as local firms step up

Alan Higbee Managing Partner – Shutts & Bowen Why is Tampa Bay a good location for a firm like Shutts & Bowen?

A full service firm like ours has experience in many areas, including some areas that are not necessarily customary for this market, such as our experience in international trade and transactions, experience with large industrial companies and experience representing large and small federal government contractors. Interestingly, the demand for these specialty practices is actually pretty high in this market. Such specialties have often been sourced from other larger markets in the past. In our experience, businesses in this market are generally very happy to see that these specialty resources are available here to help and they don’t have to look to other markets such as Washington, D.C., or New York. For areas like federal government contractors, it makes sense to have that expertise here. I believe Florida is the third-largest market for federal contracting in the country and we are sitting outside the doors of MacDill Air Force Base, which has virtually every federal agency you can name, from all the defense agencies and divisions to the IRS. How does the firm take part in the business brought to the Tampa Bay Area by new companies and startups?

Startup businesses in the Tampa Bay area come in many varieties, but some of the most promising are often spin-offs; people who have had very successful careers in larger businesses and have decided to go out on their own. Many of these companies have a need for legal services in areas of high specialization, such as healthcare, technology and government contracting.

We also see an awful lot of companies that are relocating some kind of division or business unit - or their entire U.S. operations to this market and, candidly, besides being a pretty sophisticated business center, this area is also a pretty nice place to live. In the market for legal services,

we also see an increasing need for trusted advisers. Lots of lawyers can tell you what the law is, but very few have the industry and business experience to also tell you what you probably should do and should not do.

What are the top challenges for the legal profession in the area?

The tightness of the labor pool is difficult, there is no question about that. It is certainly a major challenge for us. The other challenge is the general expansion of the needs of the market. We are becoming more sophisticated. When I moved here in 1980, the needs of this legal community were really pretty basic. In 2019, the businesses in this market are extremely sophisticated and that means their problems and issues are also very sophisticated. www.capitalanalyticsassociates.com

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LEGAL OVERVIEW

Jamie Lawless Executive Director, Tampa Center – Baker McKenzie

We started the location analysis with all the usual suspects, working with a well-known consulting group. We eventually reduced that list from 15 locations to two options. It was always important to us to locate our center of excellence in a top business destination, where people and talent want to be. That results in a greater ability to attract new talent.

There was an undeniable connection between Baker McKenzie and the people we were meeting here, including the economic development processionals, the local authorities, the city and state and the learning institutions. There was a palpable connection that was absent elsewhere. It was then an easy choice for us.

( ) deductions are now limited, negligibly affecting firms taxed as partnerships but battering firms taxed as corporations. Finally, although corporations benefit from the much-discussed reduction in the corporate tax rate, from 35% to 21%, the personal service corporation exception means law firms are capped at a tax savings of 2%.

The Act’s impact is also being felt throughout Florida, beyond the microcosm of the legal profession. For example, an important change to the tax code under the Act has sent many ultra-wealthy individuals fleeing from states with high income taxes, such as New York and California, to take advantage of the tax shelter provided by Florida’s 0% income tax, and many are landing in Florida regions like Tampa Bay. The impetus for this exodus is the Act’s new $10,000 cap on taxpayers’ state and local taxes (SALT) deductions on their federal taxable income, beginning in the 2018 tax year. This makes Florida, with its 0% income tax and 2% property tax, an extremely attractive option for high-income residents of places like California, which has 13.3% state income tax that they can no longer deduct. However, to take advantage of Florida’s tax benefits, taxpayers must first establish permanent residence in the state, which the ultra-wealthy are accomplishing by purchasing luxury properties in some of the state’s most exclusive neighborhoods, spending at least 180 days out of the year there, obtaining a Florida driver’s license, and satisfying some additional legal requirements.

The Act also includes exciting opportunities for real estate investment in the form of Opportunity Zones, specially-designated areas designed to attract private real estate investment where it is most sorely needed 54 | Invest: Tampa Bay 2020 | LEGAL

by providing capital gains tax deferrals to investors.

So far, most real estate firms in the Tampa area have had a great deal of interest and inquiry when it comes to Opportunity Zones, but not too much in the way of actual investment work. There is an estimated $6.1 trillion in unrealized gains languishing on balance sheets across the country, though, and if it were invested in Tampa Bay’s Opportunity Zones, the potential for lucrative investment and downstream economic impact could be enormous.

Diversity and inclusion The Florida Bar’s devotion to encouraging diversity springs from the 2004 Diversity in the Legal Profession Symposium, which seeks to develop a recommended course of action to be adhered to by the Florida Bar, law schools throughout the state, practicing lawyers, and those responsible for selecting the judiciary to ensure that the legal profession in Florida accurately reflect the makeup of society. From that symposium came the 2004 Diversity in the Legal Profession Final Report and Recommendations to the Board of Governors, which still serves as the guiding framework for the Florida Bar and everyone affiliated with the legal profession in Florida for increasing the participation, retention and representation of diverse attorneys in Florida.

Since then, there have been a series of campaigns and initiatives to stimulate further diversity within the Florida legal profession, including the creation of the Committee on Diversity and Inclusion in 2010, the Florida Bar’s hiring of Arnell Bryant-Willis as diversity initiatives manager in 2011, and the hiring of Eugene Pettis as the first African-American ( )

Market voices: Advantages

Kevin Johnson Shareholder Johnson Jackson

The labor pool for legal staff is tight, but we are happy with the people we have on our team. We have found that there are good people out there who you can hire, but there is obviously a lot of competition for them. As a smaller firm, we have to work harder to find those right people, and it really depends on finding the right recruiter to help with that process. It is also very much about the type of work environment we can offer potential candidates. Culture is truly the big driver behind this. We made a commitment to create the kind of culture where people would enjoy working for us. Not only do we offer competitive pay and good benefits, but they also have a lot of freedom in terms of being flexible with their work time to meet family obligations. We also offer legal staff the opportunities to learn and grow so that they can adapt to new skills and new positions. It is all about creating an environment where people really enjoy coming to work and where work doesn’t feel like a jobolor.

Tampa is a great place to live. It is an area that has had undervalued real estate, especially in the Downtown area, and that has attracted a lot of development. There has been a steadily growing young population. It has become a city where we talk about technology all the time. Local leadership has had a great positive impact in the area as well. The county commissioners and past and present mayors have had their eyes on the future and have worked very hard to develop a true vision for Tampa. Also, we do not have an income tax in the state of Florida, which is an attractive factor on top of all the amenities Tampa has to offer.

Jim Robbins

Managing Shareholder & President Hill Ward Henderson

Michael Lundy Managing Partner Older, Lundy & Alvarez

It is all about relationships. We were fortunate that the founders of the firm had very strong relationships, which we have continued to foster and build upon.

The people who come into the firm have the common denominator of also having great relationships and of being very capable of building and sustaining them. It creates a tremendous amount of stability, and it has allowed us all kinds of opportunities to keep growing. We are one of the last fully, locally-owned firms of our scale in the region, which we take pride in. We think being independent grants us great flexibility in terms of how we run our practices, how we meet our clients’ needs and also the ability to focus on our area and region. We do work in other places, but our primary focus is the Tampa Bay region.

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LEGAL OVERVIEW

commitment to advancing the goal of a more diverse legal profession. The objectives include: creating a diverse judiciary that reflects the Florida population; continuing the Bar’s “Get Involved” campaign that encourages all Florida lawyers to get involved in one or more of the Florida Bar’s sections, divisions, or committees, or other service opportunities, with a special emphasis on increasing participation among members of diverse gender, ethnicity, geography, practice area, and firm size; encouraging members to provide self-identifying information to the Florida Bar to establish baseline membership data; encouraging the Board of Governors to be more active in terms of speeches and outreach to Bar members and the public at large; and continuing to enhance the Bar’s diversity grant program.

The Tampa Bay Region is home to Florida’s oldest law school and one of the state’s oldest firms.

( ) president of the Florida Bar in 2013. Following in this spirit of increasing diversity and inclusion, the 2016-2019 Strategic Plan of the Florida Bar includes several objectives emblematic of the Bar’s continued

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Looking ahead Tampa Bay’s legal sector is going through an exciting time, with the region serving as a flashpoint for some of the day’s biggest legal questions, such the regulation of the medical marijuana industry and attempts to better regulate firearms to prevent future tragedies. The 2017 Tax Cuts and Jobs act also continues to provide no shortage of interesting legal questions, with its many nuances and ramifications continuing to manifest as it rounds out two years since its passage. To tackle these issues, the Florida Bar is seeking to develop an even more diverse body of lawyers that better reflects the actual demographic composition of Florida. By maximizing diversity of backgrounds and ideas, the legal profession will be better equipped to tackle the complex legal issues that are continuing to unfold across the state.

Real Estate: The story of the housing and commercial real estate markets in the Tampa Bay region is a tale of steady appreciation as investors continue to see value across all segments, including rentals. Like other metros across the nation, affordability remains a leading issue, leaving some residents priced out, and the advance of COVID-19 also darkened the horizon in the early part of 2020.

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Building value: The temperature of the Tampa Bay real estate market is hot and rising, but COVID-19 will likely be a near-term disruptor An attention-grabbing flagship Downtown development, a consistently high ranking as an investment destination and a plethora of positive economic indicators are underpinning the Tampa Bay real estate market.

There is little doubt that the industry has a lot going for it, even as the COVID-19 pandemic puts a cloud over the market and cools the segment, at least in the short term.

At the time or printing, realtors across the Tampa Bay region had started indicating a pullback in sales. They were also resorting to digital means to show their inventory and close deals, such as virtual showings amid calls for social distancing and self-quarantine to fight the virus. But the underlying strength in the market should help weather this storm.

Among its signature developments, the city is home to the $3 billion Water Street Tampa development that will transform Tampa’s waterfront. Although certainly the biggest, it’s just one of many high-profile developments breaking ground or already on the market. The booming industry is also one reason why Tampa Bay/ St. Petersburg was again named one of the best markets for housing and house sales in the country, coming in 11th overall in the 2019 study by the Urban Land Institute and PricewaterhouseCoopers. Consistent growth and 58 | Invest: Tampa Bay 2020 | REAL ESTATE

affordable entry makes it a sound bet for long-term real estate investment.

Market fundamentals Tampa’s real estate market is characterized by a modest but steady increase in property values, making it a safe place for long-term property investment. Some experts estimate that there is an 84% probability of housing prices increasing in Tampa between now and Q3 2021.

Yet prices today are still quite low relative to metros of similar size. This all contributes to making Tampa’s housing market a competitive seller’s market, with homes selling near or at list price within 23 days of going up for sale. The inventory of single family homes in Tampa stood at 4,358 homes in early 2020. The median value of these homes has steadily increased over the past few years and is expected to continue gaining ground.

The news is much the same for rental properties, with a supply of affordable multifamily real estate in Tampa that boasts a median monthly rent of $1,485.

A variety of other characteristics contribute to Tampa Bay’s housing market strength: the Tampa Bay region has a low unemployment rate, standing at just 2.6% at the end of 2019 compared to the national 3.5% rate in ( )

REAL ESTATE INTERVIEW

Evolution The Tampa Housing Authority is more than an affordable housing manager. It is focused on redevelopment to meet community needs

Leroy Moore COO – Tampa Housing Authority How has the role of the of the Tampa Housing Authority evolved over the last few years to better service the community?

The Housing Authority has evolved to not only manage affordable housing, but also to redevelop this housing into real estate that functions as more than just a roof over someone’s head. We consistently ask ourselves what else does a community need?

A community needs jobs, quality food and transportation accessibility, which brings in the need for collaboration with transportation agencies in the region.

We can meet the needs of the community by developing housing, especially affordable and attainable housing, around accessible transit options.

Great transit translates into better housing costs.

What steps is the Tampa Housing Authority taking to revitalize the 28-acre area now known as the Encore District?

Seventy-five years ago, the Tampa Housing Authority developed a 28-acre superblock of public housing on the doorstep of what is now the Downtown district.

Seventy-five years later, we are redeveloping that site and realizing that its potential today is far greater than what was ever imagined back then.

Instead of just having a 28-acre single-use affordable housing community, we now have 12 city blocks of diverse development called the Encore District.

Encore will be a LEED Gold neighborhood development community. All the buildings have a commitment to be LEED Silver or higher. We replaced the affordable and workforce housing and increased the number of affordable units on that exact same footprint. We are also adding other uses like hotels, museums, schools, market-rate housing and grocery stores all within the same 28-acre area.

What are the main challenges that the Tampa Housing Authority is facing?

There are a couple of challenges. One is cost, which seems to be ever increasing. The construction workforce is becoming more scarce, and there is a large demand from projects competing for a limited workforce.

Cost is going to continue to rise as a result of that.

There is also the fact that Tampa’s regulatory process for getting these deals permitted and in the ground has to be improved. Our new mayor is actually putting a lot of effort and thought into this, so I believe that will help mitigate this problem. www.capitalanalyticsassociates.com

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REAL ESTATE OVERVIEW

Brian Katz CEO & Founder – Katz Capital

The fact that real estate pricing in Tampa is still relatively attractive versus other markets, I believe insulates Tampa Bay to a degree from real estate sector cycles and general market cycles. This is the opposite of South Florida where there tends to be more dependency on these market cycles. When the South Florida market is hot, there is tons of money pouring in and prices push up. Although it’s increasingly on investors’ radar, Tampa Bay still has a lower modulation in these cycle waves. The big concern is that asset values keep rising. If we look at real estate development in the region, land values are up, labor costs are up and material prices are up. That means to achieve the same return for the amount of risk an investor is taking, you have to raise the exit price. This is going to be one constraint that Tampa Bay is going to face, and will have to figure out how to navigate.

( ) the same period; Tampa is the fastest-growing city in Florida; its population is rapidly expanding, fueling the need for additional housing; the cost of living is low relative to the U.S. average; Tampa is ethnically and culturally diverse; and the region has appealing weather that means it will always be in demand.

Commercial performance The Tampa Bay commercial real estate market finished 2019 favorably, with overall asking rents increasing significantly year-over-year by 5.6%, finishing at $27.54 per square foot. Class A rents fared particularly well, closing out the year up 6.4% YOY to $31.47 per square foot. This marks the third-consecutive quarter that Class A rents in Tampa remained above $30 per square foot. The high, and steadily increasing, asking rents on commercial property in Tampa are driven by consistently high demand among tenants. However, the commercial vacancy rate, which finished at 13.8% in Q4 2019, was inflated by the completion of new construction and a few high-profile move-outs, which resulted in negative net absorption of 325,000 square feet, the first occurrence of negative net absorption in the region since 2010.

One of the most active areas for new direct and subleases was the I-75 Corridor submarket, which finished the year at 21.1% vacancy and served as a significant contributor to the overall market’s high vacancy rate. Conversely, the central business district closed out Q4 2019 with a vacancy rate of 9.8%, the fifth-straight quarter with a rate below 11%. An additional 1.3 million square feet of office 60 | Invest: Tampa Bay 2020 | REAL ESTATE

space is under construction throughout Tampa Bay, including the Water Street Tampa development, which will likely impact the vacancy rate in 2020.

Many also see the growth of e-commerce as a key market disruptor but that balance will be key in the near term. “We are seeing a blend of both online retail presence and brick and mortar, and that is a trend that we will continue to see for the next two to four years.

Retail is going through an evolution, and that is not necessarily a negative thing. We will see significant changes over the next few years.” said Cindy Schooler, managing partner and market leader for Orlando and Tampa at SRS Real Estate Partners.

Co-working spaces are another area of growth that is reshaping how business is done in the area. “While there is some resistance from more traditional business owners, for millennials, who are the workforce’s new generation, sharing is the name of the game. Uber and Airbnb are but two examples that show we are leaning toward a culture of sharing. To grow sustainably, the first thing to consider is membership loyalty and to build it as a two-way street. We support our clients with flexibility based on their needs and how their business venture is evolving. Co-working spaces are primarily for entrepreneurs and smaller businesses, however large corporations find it attractive to utilize a coworking space and will often utilize our services.,” said Seidy Sleiman, general manager of Pipeline Workspaces.

Residential market The residential housing market in the Tampa-St. (

)

Market voices: Transformation

Mike Griffin

Senior Vice President & Market Leader Savills

Besides continued rental rate increases and new development, one important factor is what’s happening around the University of South Florida in the Uptown area of Tampa. A lot of great things are happening there. The mall located in Uptown is the last piece of the pie and I would say, for the next 12 months, that is what I’m most excited about. I am focused on helping make that transformation occur because once that’s happened, there will be a greater connection to the growth that is happening north of there, with all the development opportunities between Interstate 275 and USF, the transit connection possibilities and the integration with USF, Moffitt, AdventHealth and the VA. I’ve never been more optimistic in my 18 years of working in this market.

All the pieces are in the right place.

There are several exciting real estate trends happening in our area. The Water Street & Channelside District is completely changing our skyline and will improve how we live, work and play in Downtown Tampa. This exciting urban development has become a mecca for those who enjoy the perks of condo living along the river and for healthcare, thanks to USF Health’s medical school being in the center of it all. Seminole Heights & Tampa Heights have seen a surge in home values due to its proximity to downtown, its hip neighborhood charm and the advent of Armature Works. Soon the new 52 acre Westshore Marina District on Westshore Blvd near Gandy will be complete and will provide a fresh, contemporary community for waterfront living, shopping, dining and recreation.

Andrew Wright

CEO & Managing Partner Franklin Street

Mary Jane Rickles

Founder Live Well Team of Tampa Bay – Keller Williams

One of the ways that the growth in this region could be limited is if our infrastructure and local government are not able to keep up with the needs of the growing community. For example, we have seen transportation tax initiatives shut down time and time again over a 40-year-period. That being said, there has been a significant effort here locally. We saw that recently, when Hillsborough County voted in a 1% sales tax, which will be really transformative for the region.

As we are hitting peak growth in this region, addressing transportation has now come to the forefront. We also have seen initiatives like the Florida Department of Transportation funding the $1.4-million-dollar infrastructure improvement over the I-275 West Shore interchange, the redevelopment of the Howard Franklin Bridge, and the concept of bus rapid transit and a multimodal hub station. As we start to see more of these types of initiatives, it will support more growth all around them.

www.capitalanalyticsassociates.com

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REAL ESTATE OVERVIEW

Gregory Williams Principal – Cardinal Point Management

We chose to start our company in Tampa Bay for a variety of reasons. It has a great quality of life, beneficial business environment, attractive cost of doing business and a very manageable cost of living.

Ultimately, we are focused on real estate, and the real estate market in Tampa Bay is quite broad. At the micro level, we are focused on the individual opportunity and risk we are taking on each deal. We are much more focused on these opportunities when they arise, so our approach is somewhat reactionary. On a macro level, we think that there will be continued population and job growth in this region, so for the foreseeable future we will want to keep doing more deals in Tampa, especially when those specific opportunities arise.

( ) Petersburg-Clearwater region has been characterized by modest but steady growth over the last few years, with a 3.9% increase in median home value between January 2019 and January 2020, from approximately $220,000 to $229,468. Even better news from an investment standpoint, Zillow estimates predict a 4.2% increase in home values through to the same time in 2021. This slightly lower median property value is likely a contributing factor in the region’s homeownership rate sitting at a comfortable 64.7%, somewhat higher than the nationwide average of 63.9%, with the largest share of households having a property value clustered around this median in the $200,000-$250,000 range.

However, there are growing concerns that affordability is on the decline and threatens to drag homeownership down with it. These fears stem from data showing that many Tampa Bay residents don’t earn enough to afford homeownership. For example, average citizens of Hillsborough, Pinellas, and Pasco Counties, earn $54,000, $49,000, and $39,000 per year, respectively, but would need to earn $58,258, $60,284, and $44,877, respectively, to afford a home. As home prices continue to increase while wages stagnate, people are likely to fall even further behind. The geographic circumstances of the Tamp Bay region also impact residential trends, forcing a greater focus on density and vertical building, according to John Burpee, CEO of John Burpee & Associates. “The apartment market has seen a several hundred percent increase in rent prices since 2010.

The average rent today is $1,200 to $1,400 for a twobedroom unit in the Tampa Bay market. The same thing is happening because Pinellas County is surrounded by water on three sides, there is nowhere to go but vertical.

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Downtown St. Petersburg is a prime example of a case in which increased density requirements and standards allowed for the entire city to become vertical. More tenstory buildings and higher have been built in the last 10 years compared to the 30 years before that. To reach its desired growth, Pinellas County has to relax standards and increase density per acre.”

The steadily increasing property values in the region make it ripe for investment, and several developers are capitalizing on the opportunity by undertaking major projects. One such project is the Azario Lakewood Ranch community being developed in east Manatee County by Taylor Morrison Home Corp. The development will be divided into two neighborhoods, Esplanade at Azario Lakewood Ranch and Park East at Azario. Residents of the Esplanade neighborhood will have access to a private 18-hole golf course, a wellness center, a culinary center, a resort-style pool, sports courts, a fitness center, and a full-time lifestyle manager who will help to plan special events and parties. Park East residents will have single-family homes with customizable floor plans.

A particularly hot component of the real estate development landscape is the high-rise luxury condo market. One of the latest additions to this niche is Arris Tampa, a 34-story condominium tower planned for the corner of Ashley Drive and Twiggs Street in the heart of Downtown Tampa. The tower is being developed by the same team that backed the Virage Bayshore tower in Tampa. Arris Tampa will feature a restaurant on the ground floor, ample parking, a rooftop Residents’ Club with an outdoor pool, and 80 residences spanning 1,110 to 3,700 square feet, with prices ranging from $600,000 to $2 million. The developer will break ground on the ( )

REAL ESTATE INTERVIEW

Community Finishing touches on Midtown Tampa project will help create not only a destination, but a sense of community

Nicholas Haines CEO – Bromley Companies What’s the status the Midtown Tampa project?

We broke ground on the Midtown project in May 2019 and we are well under construction for the first phase.

There are 11 buildings going up at the same time, three residential, two office buildings, several retail ones including a Whole Foods Kitchen, first-to-market Shack Shack and True Food Kitchen, both of which are significant expansions in the market. A 1,200-car parking garage that is already topped out, and we’re right on schedule. The goal is to finish it by the 2021 Super Bowl, which will be held here in Tampa Bay just a couple miles up the street. A lot of what we are doing now is spending a tremendous amount of time on the finishing touches of the common spaces designs that create community. It is about creating an imaginative destination not just for the people working, living and shopping here, but for the neighborhood by adding public art and a feel for the place, all the things that make a space interesting and dynamic.

What business trends are you keeping an eye on?

Accessibility and pedestrian-friendliness. I just read about a development in Arizona, with 1,000 residential units and no parking. That is a bold thing for a non super-urban area. What we are trying to do is create one of the first, pedestrian-first mindset versus car-first developments in Tampa Bay and Florida. All the streets inside the development are private which is a really interesting feature of Midtown Tampa.

We are not constrained by the city’s rules regarding traffic and street design. For a big event like the Super Bowl, we can close the streets and all the cars access Midtown from the periphery. We have designed curbless sidewalks, for example, and dedicated rideshare drop-off areas. The city of Tampa is working on a number of mass transit initiatives and we are working to accommodate a mass transit stop on one of our

main corridors. People are going to live, work and shop here because they want to wake up, go to a coffee shop, walk their dog to the dog park, go shopping at Whole Foods, have a drink at the hotel rooftop bar, and maybe work at one of the office buildings. They’ll also be able to ride a bike path that connects from Midtown Tampa to the Greenway Trail System.

What other areas do you see as a hotspot for real estate developments?

It’s really exploding. The Heights area is really interesting. St. Petersburg is incredibly exciting and a great example of a vibrant, urban place with the interplay between food and art. We are talking about a city that has transformed itself over 10 years in terms of the energy there. www.capitalanalyticsassociates.com

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REAL ESTATE OVERVIEW

( ) project in the spring of 2020, assuming the necessary approvals are obtained from the appropriate agencies.

Rental market As it becomes increasingly difficult for many people to purchase homes, rentals are benefiting with prices on the rise, fueling the investment market for these properties.

The neighborhoods with the highest appreciation rates are: Ybor City, North Boundary Boulevard, University of South Florida Main Campus, North Tampa Street and West Columbus Drive, North Meridian Avenue and East Washington Street, North Morgan Street and East Columbus Drive, City Center, North Florida Avenue and West Emma Street, North Taliaferro Avenue and East Osborne Avenue, and Gary. In terms of the initial cost of investment, Old Seminole Heights, Sun Bay South and Tampa Palms all provide a good value. Sunset Park has a median listing price of $1.1 million, making it the most expensive neighborhood, whereas East Tampa is the most affordable with a median listing price of $149,900.

Although the cost of purchasing a home in Tampa Bay remains affordable when compared to the national average, and particularly when compared to other major coastal metros, housing affordability is becoming more of an issue as many residents’ wages fail to keep up with rising home values, meaning more people will have to rent. This essentially guarantees a growing demand for rentals. The current median monthly rent stands at $1,585, compared to the Florida median rent of $1,716 and nationwide median rent of $1,594, demonstrating that Tampa Bay’s rental housing affordability is on par with national trends and actually faring better than affordability across the state by a fair bit.

Affordable housing Affordable housing is in crisis throughout most of the country, and Tampa Bay is no exception. The cost of owning a home is quickly outpacing the average earnings of Tampa residents, which puts the dream of owning a home increasingly out of reach for many people. “There are plenty of customers for all the big builders, but the people who work in retail, hospitality and more, who are all long-term employees in the region, have a hard time finding a place to live. Having more housing that is safe and affordable is crucial to an economically healthy community. For Tampa Bay to continue prospering as it has, there needs to be more access to workforce housing. Communities are also going to be much healthier when we can have all income groups living together rather than having this sort of economic segregation that tends to happen when 64 | Invest: Tampa Bay 2020 | REAL ESTATE

there isn’t enough availability of this type of housing,” Executive Director of Florida Home Partnership Mike Morina told Invest:.

According to the figures from 2018, 35.3% of the region’s residents rent as a result, but even this is becoming an increasingly unaffordable option. Tampa had the 14th-highest rent increases among the Top 50 U.S. metro areas in 2019, and the second-highest in Florida after Orlando. Assuming a 40-hour work week, it now requires a wage of $21.79 per hour, or a salary of $45,300 per year, to afford the rent on a two-bedroom apartment in Tampa Bay. This means a minimum wage earner would need to work 2.6 jobs to reach this threshold. At this point, proactive action is required to combat the shortage of affordable homes. One example of such action is the development of properties like the Haley Park Apartments, which were opened in the University Square neighborhood after the closure of a similar affordable housing complex, North Boulevard Apartments. Haley Park provides affordable housing to many elderly residents and others struggling to afford

The Tampa Bay commercial real estate market finished 2019 with overall asking rents increasing year-over-year by 5.6%.

REAL ESTATE OVERVIEW

Christopher Bowen Chief Development Strategist – RD Management LLC

The young demographic that is highly educated, highly trained, very creative, very innovative and very motivated is an asset that has not been fully unleashed yet. I cannot wait to see what they produce over the next 10 years. Anybody who’s developing real estate in Tampa Bay, whether you’re developing residential or commercial or mixed-use communities, I think this demographic is going to be your biggest catalyst and biggest positive unknown.

The question will be what is this growing base of residents and doers in the community going to create in terms of value and how great are they going to make this market in the next 10 to 20 years.

I don’t see anybody analyzing that or scoring that. For me, it makes me feel really good about investing and developing in this market because I know that every time I look, that segment is coming up with something else that is really cool and innovative.

rent. There are also certain neighborhoods with rents below $900, including Carrollwood, Temple Terrace, and the Greater Northdale area. In Pinellas County, Redington Beach, Oldsmar, Dunedin and Indian Shores also offer options in the same price range.

Growing neighborhoods Neighborhoods are growing at historic rates all across Florida, with only about a dozen out of all neighborhoods across the state failing to expand in 2019. Within this ecosystem of booming growth, the Tampa/St. Petersburg region emerged at the top of the pack, with its East Ybor neighborhood claiming the No. 1 spot following 19.19% growth year-over-year, and 10 other neighborhoods making the Top 50 list with more than 10% annual growth. These other 10 fast-growing Tampa neighborhoods are: Wellswood, the Allendale Association, Virginia Park, Swann Estates, Bon Air North, Riverside Heights, Oakford Park, Highland Pines, Highland Oaks, and Clam Bayou. Additionally, some Tampa neighborhoods that are particularly good places to invest in rental property include Grant Park, Port Tampa City, University Square, Historic Ybor, Wet Riverfront, and Temple Crest.

Perhaps one of the most hotly-anticipated neighborhoods in Tampa, however, is Water Street Tampa, a $3 billion mixed-use district that is under construction between Tampa’s central business district and the Channel district waterfront. One of the development’s many subprojects – a $50 million ( ) www.capitalanalyticsassociates.com

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oundtable:

Commercial Real Estate Commercial real estate in Tampa Bay is expected to remain strong over the long term, despite a near-term cooling as a result of the COVID-19 impact. From online retailers to consolidation, market leaders discuss the trends that are underpinning the industry.

Scott Dobbins

Founder & Principal Hybridge Commercial Real Estate

How has the growth of online retail changed the retail tenant market?

It has affected our business development pursuits with regard to our retail tenant representation business. There has been a new focus on identifying and working with “non-disruptable” service and food-based retailers and digitally native brands (DNBs). DNBs are retail brands that were originally formed as online retailers. Once they reach a level of success online, many of these brands are raising significant capital in an attempt to go omnichannel. This has resulted in a recent migration of digitally native brands that started online and are now expanding to brick and mortar locations.

How has the strength of the retail commercial real estate market in Tampa trended in the past year?

The retail market continues to be very strong here.

Demand continues to exceed supply in many of the strongest retail markets throughout Tampa Bay. This continues to drive up rental rates and has limited cap rate decompression for stabilized retail assets.

What is a unique trend that has emerged in the market?

One trend we are starting to see is the emergence of what is referred to as ghost restaurants. These are restaurants that choose to occupy commissary or commercial-grade kitchens, and are set up to market and deliver their food exclusively via app-driven delivery services such as Uber Eats, Postmates and Door Dash. The economic incentives to this model are compelling as the occupancy and labor costs are significantly less than a typical restaurant which should drive higher profit margins.

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Jonathan Levy

Co-Founder & Managing Partner Redstone Investments

Where do you see the most potential in real estate development?

There are many pockets of opportunity. Westshore, Downtown, West Tampa and Seminole Heights all have their own success stories. The transition is happening all around the market. On the peripheries, the north part of Hillsborough County and the south part of Pasco County are both exploding with activity. Wesley Chapel is also booming and as a result prices in all those markets are increasing. Downtown and the Westshore Mall have been talked about a lot and is now starting to come to life. A portion of the Westshore Mall is being redeveloped for mixed-use and the Austin Center was just rebranded as Westshore Metro Center.

Midtown Tampa is well underway and Armature Works in the Heights District is a huge success. From Kennedy to Columbus, there are lots of opportunities and neighborhoods starting to transition into areas of growth. I think more will start to happen in areas surrounding these projects.

What will keep the growth of the real estate market sustainable?

I think the weather conditions in Tampa do much of the work. It’s not necessarily what attracts people to the area but it’s certainly one of the things making people stay. Also, the office rents and taxes are substantially less than other big cities. It’s a major selling point for the Tampa Bay market. We develop and keep our products, holding our properties for the long term. We don’t try to make record-breaking deals, but rather we recognize when a property is a solid investment.

REAL ESTATE ROUNDTABLE

Larry Richey

Managing Principal & Florida Market Leader Cushman & Wakefield

What does the development of multiple office and mixed-use properties mean for the commercial real estate market in Tampa Bay? The most talked about projects happening in Tampa Bay are in the office and mixed-use sectors. In the Hillsborough County market, we have four mixed-use projects that are all very active. Those four new projects are Water Street Tampa in Downtown, Heights Union just on the northern fringe of Downtown, the Midtown project that is being developed at the intersection of I-275 and Dale Mabry and fourth is the MetWest project in the Westshore District on Boy Scout Boulevard. We are seeing the highest office rents in the history of the Tampa Bay area right now, and it is because we have the strongest demand for office space that we have ever had.

This is good news because it means new development and jobs in the commercial real estate sector.

What changes in demand are you seeing in the real estate market?

It has been an interesting time, with a lot of consolidation and M&A activity. Our biggest company changes are related to our expansion through the acquisition of three companies in the last few years and about 20 highly productive large teams that came to Cushman & Wakefield from our competitors. We have entered property sectors where we were not active before in Florida and those are self-storage and student housing. We have also expanded our presence in senior housing and in the multifamily space, which has been on fire throughout Florida and will continue to be. Demand for multifamily properties has been high for years now and there is no end in sight.

Christopher Travis Sales Manager Marcus & Millichap

What emerging trends in the regional real estate market could be seen as disruptive?

One is capital migration. Around $17 billion has migrated to Florida, the No. 1 destination for capital in the country followed by Texas, at $2 billion. People are leaving states that are not tax friendly and coming to Florida, which is very tax friendly. Because the stock market can go up or down, hard assets are attractive. The returns investors can get in commercial real estate are attractive. People are looking at commercial real estate as a means for retirement, passive income.

Are there any particular trends that you see becoming a potential mistake for investors?

Probably one of the biggest mistakes is trying to follow the herd. Investors hear about the upside of multifamily developments and apartments, and want to invest in that, but they are two years late and the prices have already gone up. The best opportunities are found by getting ahead of the pack. Some of the property types to consider are industrial and medical offices.

Which types of properties are in the highest demand in the area?

Multifamily properties are in high demand, in large part by out-of-area investors. And then retail has remained strong during the real estate market recovery. Everybody was scared about e-commerce, but it only makes up about 14% of the overall market. Retail is going to be just fine, especially retailers like dollar stores, gas stations, and fast-food. www.capitalanalyticsassociates.com

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Mark Metheny Tampa Division President Lennar

What has been the key to Lennar’s success in the Tampa Bay area?

I think we really continue to understand what our buyer wants. From a locational standpoint, we know they still want great schools and a short commute to work, so we’re interested in employment centers and educational districts. We really analyze the features people want in their homes, whether that be quartz countertops or white cabinets or even dog walking trails. We have the benefit of scale across the country, which we can leverage to really understand what the buyer is looking for. We also are very focused on keeping that value proposition since many buyers here are first-time buyers.

How is your success a testament to the overall success of the market in the region?

Tampa Bay remains one of the most affordable markets in the region, and provides tremendous value for those moving here, whether they are looking for job growth or retirement facilities. The job growth rate is very strong in Tampa Bay and, combined with affordable housing, this makes for a great opportunity for people to continue to come here. There’s also the changing perception of Tampa Bay. When I started working here, Tampa Bay was not really seen as a hip place to live, but now there’s a lot of attractiveness for millennials and many more people in this generation are coming back to the area after they graduate college.

What areas in the Tampa Bay region will see the next wave for residential development demand?

Pasco County is certainly the market we have put the most effort into, as is northern Manatee County. We’ll continue to do infill development of areas that are perhaps conversions from industrial space but on a smaller scale of around 50-60 houses. Pasco County has put a big focus in the last few years on attracting employers to the area so the residential market is following that. There is now a large number of buyers, great affordability and great connectivity.

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( ) renovation of Tampa Marriott Water Street – is nearing completion and is set to wrap up in 2020. The comprehensive overhaul, which redid practically every corner of the 719-room convention hotel over the course of two years, is meant to give people a taste of how Water Street Tampa will feel when it’s complete.

Trends The Tampa Bay/St. Petersburg area was one of the nation’s hottest real estate investment destinations in 2019, according to the Urban Land Institute and PricewaterhouseCoopers study. The region’s 11th-place ranking narrowly missed the Top 10, where it sat in the previous study. The cities ranked ahead of Tampa Bay included Austin, Texas, Raleigh/Durham, North Carolina, and Nashville, Tennessee, which ranked first, second, and third, respectively. Fellow Florida metro, Orlando, placed seventh. Despite its slight drop from 10th in 2018, Tampa Bay/St. Petersburg remains a top market for investment thanks to its growing population, business friendly and low-tax environment, and competitive housing prices. “When I run analytics on the transactions that our agents are doing, two things stand out. First, they are conducting more transactions than we have ever seen. Second, the average amount of dollars spent is going up. I believe this is no surprise because we know that prices are going up for real estate around the Tampa Bay area. One of the biggest things we see month-over-month, year-over-year is that the average sales price is increasing, which is certainly beneficial for the local market and economy,” said Ryan Chamblee, managing broker at Pineywoods Realty.

Among the contributing factors to the region’s favorable investment climate: a stable real estate market with steadily growing property values that ensure a return on investment, but present prices that are still remarkably affordable compared to similar regions with similar amenities; several growing and desirable neighborhoods; and no regulations surrounding subletting on platforms like Airbnb, which affords further opportunities to make money on real estate investments. “Tampa Bay is a business-friendly environment, with beautiful bays, proximate beaches and great weather, so we must continue to push and promote those qualities. Moreover, with no income tax, a reasonable cost of living, USF’s status as a pre-eminent research university and its nationally recognized medical school, we will continue to attract companies and talent relocating from the Northeast and Midwest,” said Adam Harden, principal at SoHo Capital.

Another factor that has traditionally brought an influx of real estate investment to Tampa Bay, particularly

CONSTRUCTION REAL ESTATE OVERVIEW

foreign investment, is the EB-5 visa program. Tampa has warm weather, beautiful beaches, and excellent culture that make it a magnet for famous architects and highprofile developers, as well as the kinds of people who desire and can afford the properties they create. Water Street Tampa is an example of such development, and there is an abundance of luxury condos on the market and being developed that provide further evidence. Many of these projects receive funding through participants in the EB-5 program, which provides that any foreign national who invests at least $500,000 in a U.S. project that promises to create at least 10 long-term jobs can receive a visa and green card if the project is completed.

Pre-purchasing a condo before completion of the building counts as an EB-5 investment, and also helps the developer complete construction of the building by securing additional financing, and is therefore a mutually beneficial arrangement. Historically, Tampa Bay receives a healthy amount of foreign investment from Latin America and China. However, despite its popularity, the EB-5 program has long been a point of contention among members of Congress, and there are even some calls for an increase in the minimum investment amount required to qualify, which could impact foreign investment in Tampa Bay in the future.

Looking ahead The longer term outlook for Tampa Bay’s real estate market is positive, despite the near-term disruption from COVID-19. Property values expected to continue to increase through Q3 2021, though not so radically that the market loses the advantage of its overall affordability.

The population is also expected to continue growing, supporting demand for rental and sale options. With several major developments in the works, most notably Water Street Tampa, developers are trying to keep up with, and capitalize on, this demand.

“The land market, in general, is going to run similar to what the economy does. The demand for residential land is going to be dependent upon the 900 people a day migrating here. If suddenly the overall economy is hurt by something like the current coronavirus epidemic and people stop traveling here, then that will affect this market. When those kinds of changes happen, people just freeze up and they don’t do anything. Overall though, barring any further negative impacts, the economy will continue to do well on all fronts. We are still doing well and I do not see a slowdown on the horizon. We might have some market correction because it’s an election year, but overall we have a positive outlook,” said Dean Saunders, founder and managing director of SVN Saunders Ralston Dantzler Real Estate.

Gary Godsey Managing Director JLL

What are the most relevant commercial real estate trends happening in the local market?

We continue to see office users looking to capitalize on efficiencies as costs rise. Co-working is also a big trend recently. In terms of efficiencies, we’ve seen investors spend their own capital to enhance their building amenities because users are looking to utilize those instead of spending their own capital within their space.

The usage of technology across all sectors is another important trend JLL is heavily focused and invested in.

When you look at industrial real estate, it’s all about e-commerce and big box distribution. Those continue to be major drivers within the industrial landscape.

Regarding coworking operators, we look to partner with some of those large coworking operations because we view it as a good option for some of our clients that are expanding within the market and even some new ones that are looking to get a foothold here and expand in the future. It’s a nice, flexible option.

Where do you see the most activity in the Tampa Bay Region in terms of commercial real estate in the next year or so?

It has always been in the core submarkets, like Westshore and the Central Business District (CBD).

Historically, they’ve been the focus of development and I think that will continue. We are seeing new developments in areas like the Heights and Water Street Tampa. Time will tell how these developments impact the marketplace. I think they are both going to be extremely successful, but they are on the outskirts of the Tampa CBD. Perhaps we will see the core of the Tampa CBD start to shift. Additionally, if you just look at the rooftops in Pasco County and in South County, it makes sense for these areas to be considered for future commercial real estate development, despite the lack of transportation. I think we will see developers get creative and maybe look at areas like this. If you look at the I-4 corridor, that is going to continue to be a main driver in the industrial sector. www.capitalanalyticsassociates.com

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Construction & Infrastructure: When construction is booming, it’s a good sign that the economy is doing well. Rather than any softening after years of growth, Tampa Bay’s construction fundamentals are improving. Material costs and an ongoing tight labor market are challenges, as is the COVID-19 pandemic, but low interest rates will continue to underpin activity and growth.

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Strong fundamentals: As cranes dot the skyline, all signs point to strong and continuous growth, although COVID-19 has raised the specter of uncertainty It’s a good sign for construction when the skyline is dotted with cranes. In Tampa Bay, cranes are numerous, reflecting the increase in construction spending and development across the region. The increase in construction activity is also reflected in the number of new jobs created in 2019, which in itself is also posing a significant challenge: finding qualified workers to fill those jobs. By early April, state and county authorities had not yet stopped construction in the wake of COVID-19, although some communities had taken measures themselves. Rather, efforts to impose social distancing at construction sites were in place, although a continued spread of the virus would no doubt impact the sector moving forward.

Sector performance National construction spending for 2019 totaled $1.3 trillion, 0.3% below 2018 and the weakest level since 2011.

But the value of public construction last year grew 7.1% on 2018, to $328.8 billion and educational construction 3.4% higher to $79.0 billion. In terms of job growth, The Tampa Bay-St. Petersburg-Clearwater region tied for tops in Florida and 11th in the nation, with a 10% gain in jobs to 85,000 in 2019, the same percentage rise as Palm 72 | Invest: Tampa Bay 2020 | CONSTRUCTION & INFRASTRUCTURE

Bay-Melbourne-Titusville, according to the Associated General Contractors of America (AGCA).

Although jobs growth, and the continued low unemployment rate, are sure signs of a strong economy and sector, they are also a challenge. Despite the number of construction workers growing more than 28 percent from 2014 to 2019, Tampa still faces a labor shortage, according to CBRE. The shortfall of qualified construction sector workers has pushed labor costs up further, causing delays to many projects.

Academia is an integral part of the labor solution for many businesses in the construction sector. Many believe the job of educating an appropriate workforce is getting done. “We used to have to attract from three schools, the University of Florida, University of Miami and FAMU, and none of those are really close to the Tampa area,” said Ward Friszolowski, president of architecture firm Harvard Jolly, to Invest:. “We used to have to not only travel to recruit students but also convince these students to relocate to Tampa Bay, which was traditionally a retirement area. Now, it’s not taking a lot of effort to convince people that St. Pete is the place to come and live as a graduate, and also a lot of the talent is right here in the area. This is often overlooked, but

CONSTRUCTION & INFRASTRUCTURE OVERVIEW

it’s really something that’s making a big difference right now.”

Nationally, one of the biggest factors impacting the construction sector in 2019 was President Donald Trump’s trade war, which levied 25% tariffs on steel and aluminum imports and packed a punch for the bottom line of construction companies and developers. The 2019 drop in construction spending was the first annual decline since 2011, according to Nasdaq Nationwide, steel imports took a tumble, lending support to the domestic manufacturing industry but simultaneously placing significant pressure on margins for construction companies and developers. Prior to the tariffs, Turkey was one of the most significant steel rebar exporters to the United States, exporting almost 1.5 million tonnes of rebar in 2015 alone, with its closest competitor Canada at just over 400,000 tonnes. After the tariffs were imposed in 2018, Turkish rebar exports fell to just 367,609 tons and Canadian to 280,181. U.S. rebar imports on the whole tumbled to 1.5 million tons in the first 11 months of 2019, compared with 2.5 million tons in 2017 prior to the tariffs being imposed. This created limited supply for U.S. developers, who were largely forced to source from domestic mills, which in turn were able to hike prices.

Yet, development in Tampa is still relatively affordable for an economic hub. To buy a property in the city center, the average cost is $254.65 per square foot, compared with $327.25 per square foot in Sarasota and $390.66 per square foot in Miami. Additionally, real estate data from Zillow shows that the median home value in Tampa is $219,100. Tampa home values have gone up 2.5% over the past year but the company predicts that the Tampa real estate market will stay flat within the next year, meaning

it is a strong market in terms of affordability. But with population growth and plenty of demand, land is set to become scarcer and prices are set to rise. “Across the board, everyone in the design and construction industry is concerned about construction costs and a strained labor force. It is challenging to handle the cost escalation that we have been experiencing in recent years. The lack of workforce and rising costs, as certain projects are taking longer to complete, and some are taking longer to get approved to start. A lot of work has to be done to complete a project within the established budget or deal with cost escalation on that project. On the development side, the availability and cost of land is always a significant topic.

These factors affect our business as we have a number of clients that are actively seeking new projects, but are having trouble finding a site that meets their needs and their budget,” said Stantec Senior Principal Dave Kemper.

Another headache for developers in Tampa is the difficulty in obtaining permits, a process that CBRE says poses “significant challenges” due to the timeframes involved. The approvals process in Tampa can constitute up to 32% of the total project cost. But in November, Tampa Mayor Jane Castor took the first steps to addressing the issue, revealing a plan to streamline the permitting process. The plan would involve additional staff in the planning and development department as well as making the online permitting process clearer and more user friendly.

Zoning In response to land and permitting issues, developers have started moving to the peripheries of major metro areas, meaning traditionally suburban areas are ( ) www.capitalanalyticsassociates.com

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CONSTRUCTION & INFRASTRUCTURE INTERVIEW

Decent value Two key advantages for the Tampa Bay region is the price of land and the lack of restrictions on what can be done with property

Todd Fultz Managing Director – Central Florida, Plaza Construction Have you observed any change in demand due to the Opportunity Zone legislation?

While I believe that the legislation will be great for our industry, until more people understand how to take advantage of the Opportunity Zones, this will be a longterm, slow-moving process. When they were trying to move the Rays’ stadiums to Ybor, they were looking to take advantage of an Opportunity Zone present there. We will see more movement like this because of the economic incentives that are associated with these zones.

How can businesses in the construction industry help themselves to be more recession proof?

The best way a construction business can protect itself is to diversify its business geographically and by product type. For instance, we are working on three residential condos, two hotels and four other commercial-type projects. The key is to try and maintain a presence in a couple of different sectors, and the way to keep that balance is just to be diverse. .

What sets Tampa Bay apart from the other areas in Florida that Plaza Construction services?

Tampa has an advantage because the land is still a decent value. In Tampa, developers are also not as constrained regarding what they can do with their property, which can be attributed to that fact we are still very much a small city. There is still a sense of community in Tampa, and when people move here they can feel it. There are great opportunities here for construction companies and developers because the region has three unique centers of business in St. Pete, Clearwater and Tampa. Each one offers something a little different, and they all are starting to work together to create a truly unified region.

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What factors have contributed to the growth Plaza Construction has experienced in Tampa Bay over the last year?

A lot of that growth can be attributed to the economy and opportunities presented by the Tampa Bay region.

We have been able to take advantage of those aspects through the relationships we have established in our community. We differ from the competition in the region because our company was started by a developer, so we think like a developer thinks. We are transparent and open in the way we do business, and we never try to sneak anything past our customers.

The key has been to treat our customers as partners, but that also means we have to find customers that treat us like partners as well.

CONSTRUCTION OVERVIEW

( ) exploding with real estate activity and in turn bringing up prices.

But not everyone is happy about the expansion.

In December, Hillsborough County commissioners agreed with citizens to impose a 270-day moratorium on building on rural land in locations like Wimauma and Balm, south and east of Tampa. Citizens of the area are concerned this kind of development creates urban sprawl and causes residential developments to be built before the supporting infrastructure can be installed. No ongoing projects will be affected by the moratorium, but this is sure to be an issue that crops up again for developers in the years to come.

Impact fees are a critical part of real estate, to ensure local emergency services have the correct resources to respond in a timely manner to any incidents. But authorities are taking new steps to ensure their counties and cities are the most attractive for developers by providing incentives that essentially waive these fees.

In November, Lakeland commissioners waived more the $400,000 in impact fees for Blue Sky Communities, which is building an 84-unit affordable housing project on Griffin Road.

Opportunity Zones Since the 2017 Tax Act, dozens of Opportunity Zones have been created in the Tampa Bay area to spur investment in depressed areas by giving investors big tax breaks. Developer PTM Partners plans to start construction in May 2020 on its redevelopment of the Furnish Me Vintage property at 1246 Central Ave that it bought for $13 million, and it was the Opportunity Zones that brought the company to St Petersburg. Core Investment Management also invested in two Tampa

projects and one in South Florida in Opportunity Zones, with one of the Tampa developments worth an estimated $500 million to $1 billion.

But although Opportunity Zones have piqued the interest of many developers, they seem to agree that the zones alone are not enough to spur investment: the deal needs to make sense on a standalone basis and the tax breaks are an added bonus. This is especially true because there is still so much uncertainty surrounding the issues. For starters, the final regulations of the Tax Cuts and Jobs Act still need to be ironed out, and there is still no guarantee this federal initiative will be followed by authorities at a state or local level.

Financing trends Financing is an issue that almost all constructors need to contend with, but since the economic crash in 2008, banks are more cautious. During the last boom for example, banks might loan 75 percent or more; today, it’s about 60 percent. The memories of overdevelopment are still fresh in the minds of lenders and this is causing developers and construction companies to get creative when sourcing funding for projects.

One way that projects are being funded is through the personal wealth of ultra-high-worth individuals.

This is the case for Tampa’s Water Street mixed-use development, backed by Bill Gates and Tampa Bay Lightning owner Jeff Vinik. But even this option needs collateral, and for that Vinik has leveraged the Amalie Arena, with a $102 million loan against its value to contribute to the $3 billion plus district. Another $664 million construction loan for the 50-acre project will come from Bank OZK. And Kolter Urban, which purchased the lot adjacent

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James Fox President – Maddox Group Twenty years ago, a traditional office space would consist of offices around the perimeter with a cafe in the middle and a conference room. The problem is everyone was in their office behind closed doors. Today, there are a few offices for executives with associates in the middle in a sort of cube-farm. I think businesses really like this approach because it brings continuity to the team, and camaraderie to the office. I believe the few coworking spaces that have tried to launch never really panned out and there are questions that still need to be answered. I still believe it is a great idea, but there might be too much inventory on the market.

to Hilton St. Petersburg Bayfront Hotel, is partfinancing the deal by allowing the hotel rights to 205 parking spaces within the parking garage of its new 35-story luxury condominium tower called Saltaire.

The deal for the 1.65-acre space was worth $17.5 million, $8 million of which was paid in the first tranche.

In Pasco County, commissioners were so supportive of Colwell Avenue Properties’ proposal to build two threestory Class-A office buildings on State Road 54 that they approved nearly $2.94 million in incentives. The project is estimated to cost $27.1 million and will span 21.76 acres, on which it will include on-site parking, access driveways and infrastructure. The development should create 400 direct and indirect jobs, with salaries to the tune of $17.7 million, with a $26.5 million economic contribution to the county.

Residential US homebuilder confidence remains near highs not seen since 1999. The National Association of Home Builders/Wells Fargo Housing Market Index stood at 74 in February, below the 76 figure in December, the highest in two decades and suggesting stable construction growth. Mortgage rates remain low, lending support to residential construction as demand remains strong.

Bank of America’s rates for a 30-year fixed-rate mortgage was 3.375% at the beginning of April, mostly unchanged since the start of the COVID-19 crisis.

New private housing units authorized by building permits also rose in 2019, U.S. Census Bureau figures showed. In December last year, the number of authorized new private units was just over 2.2 million units, up from about 1.3 million, or 69%, in December 2018. “The market continues to be strong, and values continue to 76 | Invest: Tampa Bay 2020 | CONSTRUCTION & INFRASTRUCTURE

increase,” Jay Miller, president of J2 Developers, told Invest:. “We’ve seen some plateauing, but we really haven’t seen a softening of the market. That’s due to the fact that interest rates remain very low, and new luxury apartments are so pricey that it continues to be attractive to buy. The key variables are going to be interest rates and employment. As long as employment continues to be strong, and we continue to see in-migration, we are going to continue to see demand for new residential units in the Bay area.”

Commercial and Industrial Commercial and industrial construction is exploding in Tampa, despite rising construction costs, and Tampa’s building boom is expected to continue for several years, especially in mixed-use developments. Orlando and Tampa Bay rank in second and fourth place, respectively in terms of hot spots for new commercial real estate developments, according to EDR Insight.

One notable mixed-use development is the Water Street mega-project, spearheaded by billionaires Gates and Vinik. Colliers International Tampa Bay has been awarded the contract to fill the 1 million square feet of retail and entertainment space within Water Street and Sparkman Wharf, while JLL will oversee the leasing of the office space.

Midtown Tampa is another mega-project spanning 1.8 million square feet of retail, residential, Class A office, entertainment and hospitality space developed by Bromley Cos. Jeffrey R. Anderson Real Estate and Casto Southeast Realty Services spent $500 million to develop a 220,000-square-foot space that will feature retail and entertainment space as well as “lifestyle centers”.

The Men’s Wearhouse on North Dale Mabry Highway

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was also demolished to make way for Midtown One, a 140,000-square-foot office tower – just a fraction of the 700,000 square feet of office space planned.

And in St Petersburg, the Edge district is taking off.

PTM Partners’ announced their intention at the end of 2019 to build the Edge Collective – a co-working space and events venue after acquiring the land in a $13 million acquisition. Tricera Capital, which already owns 10 properties in and around the Edge district, will partner with PTM on the project. The first 11-story, 140-room boutique hotel in the district will be built by DevMar Development under the Marriott Tribute brand. And a two-acre site on 4th Street North will become its own mixed-use development with 100,000 square feet of Class A office space at a cost of about $70 million.

An industrial development will take root in Lakeland after the Brennan Investment Group acquired 165 acres of land on the I4 to build 1.5-million-square-foot CenterState Logistics Park East, the first phase of which is due to be completed by year-end. And a 7,000-acre ranch in Pasco County is to be transformed into an economic engine as a life sciences research building overseen by the H. Lee Moffitt Cancer Center & Research Institute. Known as Project Arthur, the project should cost $191 million.

Looking ahead According to analysts at Wells Fargo, despite apparent headwinds, the Tampa Bay construction industry looks to be strengthening as certain challenges ease. “There has been quite a lot of competition moving into Tampa Bay over the past couple of years, which is a strong indication of how the market in the region is doing. Companies want to be here and as they continue to move into the area, it will be interesting to see how they handle the challenge

The value of all the construction in St. Petersburg in 2019 increased 12 percent, topping $782 million, an all-time record.

of the lack of construction labor,” said Michael Miller, operations manager at Manhattan Construction. “After the last recession, a lot of young people in colleges and universities who were seeking a technical degree and who would have normally come into our industry, were scared by the lack of work and instability in the market at that time. This has created a six-year vacuum within the industry where there were not any new people joining the labor force.” The wild card, of course, is COVID-19 and how long its impact will continue to impact the sector.

Conn Crabtree

Senior Vice President & General Manager – Tampa Division Batson-Cook Construction The growth in the number of people moving to the area is fueling the entire economy. We are seeing it across all market segments, including construction. Multifamily is still strong, while high end hotels and other hospitality products are coming into the market. This demand for high-end products will continue for the near future, which fits in really well with what we do. The most exciting part is the number of companies looking to relocate, expand or bring additional people to the area. Tampa is an easy sell to employees, highly attractive to all age levels and it is a great place to raise a family as well.

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Market voices: Growth factors

Bob Clifford

We’ve been working quite a bit with the Florida Department of Transportation (FDOT) on specific segments of the Tampa Bay NEXT program.

Also, we are doing work with both the FDOT and the Tampa Bay Area Regional Transit Authority (TBARTA) for the regional BRT (Bus Rapid Transit) service on the I-275 corridor. We are also doing quite a bit of work with transit agencies and local governments.

Vice President & North & Central Florida Area Manager WSP

The key to sustained growth is focusing on the culture that a company has created and on delivering the best work to the core of their business.

The delivery of professional services in this marketplace has always been very people dependent; people do business with people they view as professional and proficient. Providing professional services at the highest level means trying to teach and train a company’s culture to ultimately ensure that they continue to deliver a product that has intrinsic value.

Patrick Gassaway President Heidt Design

Mark Hardy

We have a lot of projects on the books that haven’t started yet but are on the horizon for the new year. This includes a new performing arts center and new contracts with Pasco County Schools, Hillsborough County Public Schools and Hillsborough County for infrastructure improvements. This year, we surpassed 100 employees at this office and we will look to build off that momentum. The remainder of 2019 and 2020 are shaping up to be really great years for the company.

Vice President Universal Engineering Sciences

It is really difficult to deal with the process of acquiring permits in the current regulatory environment. Government’s typically have a bureaucracy, but this should not delay the process of acquiring permits. This process should take a couple of months, not a year, which has been the case as of late. The submittals to all the counties in this region take an exorbitant amount of time to get approval, and we in the industry would like to see this process more streamlined, which would benefit the local economy as a whole.

James Lockhart Managing Director Lockhart Management Group, Inc

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Demanding times: Tampa Bay is battling to strengthen its water and electricity services in the face of old obstacles Tampa Bay’s population is growing, but there are questions over the current infrastructure’s ability to keep up and adapt to the new demand. Issues with energy deregulation, obsolete pipelines and a failed fiber network installation characterized 2019 for Tampa Bay. The citizens of Florida this year suffered a setback in electricity generation, as the Supreme Court tossed out a petition that would allow “several rights, such as the right to purchase electricity from a provider of one’s choice, the right to purchase electricity in competitive wholesale and retail markets, the right to generate electricity oneself or in combination with others,” which the petitioners say will create greater competition in terms of energy rates.

But the court ruling disagreed, calling the initiative “very damaging financial impact on state and local governments of more than $1.2 billion per year in increased costs and reduced revenues.” The state’s utilities argued that Florida’s customers already paid lower rates than the national average and that the deregulation of electricity would make costs more expensive for consumers.

Tampa’s main energy utilities are Tampa Electric, TECO, People’s Gas, Duke Energy Florida and the

City of Tampa. But in Florida, it is not just energy that generates employment, it is also energy efficiency.

In fact, 118,400 out of 174,100 jobs in alternative energy were related to energy savings. And in Florida in particular, there is now a growing emphasis on switching to cleaner forms of energy generation, such as solar and wind power from the big utilities.

Ecosystem and climate change Florida’s state budget is $91.4 billion, yet the minimum amount required for protection against rising sea levels in the short term is $75.9 billion, according to the Center for Climate Integrity. Tampa alone requires $938.4 million, and with seas in the region expected to rise 8.5 feet before 2100, this does not even begin to cover damage to property, infrastructure, lives and livelihoods.

In July, St Petersburg responded to this issue by exploring how to grow sustainably while protecting lives and property in low-lying areas. Although commissioners cannot rezone the county due to current regulations, they have implemented Coastal High Hazard Areas. This creates its own problem, whereby greater population density is required outside of these areas as the population swells. www.capitalanalyticsassociates.com

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Nancy Tower President & CEO Tampa Electric

Why has investment in cleaner, more renewable energy been such a focus for Tampa Electric?

The biggest factor is that customers want it. When thinking back over the last few years, the number of people focused on a cleaner environment has increased exponentially. This is symbolic of the focus citizens and our customers have on environmental stewardship, and that is not going away. We are very happy with our progress. I think it’s our obligation on behalf of customers to demonstrate that clean energy is not only our responsibility in terms of an environmental perspective, but also from a cost perspective. We are focused on both of those things simultaneously.

How would you respond to the argument that clean energy is not yet cost-effective enough?

It is our job to ensure that our generation portfolio is the most cost-effective for customers. Over the long term, we have carried out extensive cost modeling to ensure we can meet these expectations. In the next number of years, we will add more solar capacity and our generation will include more small-scale methods combined with battery storage. This doesn’t come without hard work and we need to find the right ways to keep costs low. This involves finding the right land close to our transmission infrastructure, ensuring suppliers are providing competitive prices and efficient cost management. Costs have come down, but we need to ensure we tightly manage this.

What new technologies are you implementing in the area?

We believe battery storage is a part of our energy future. The technology is new, and we’re not ready to deploy that on a large scale until we figure out the true impact it will have on our system. We have put in place a battery storage project this year near our Big Bend solar project, which will give us really good information on how solar and battery storage interacts with our system.

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Tampa Bay, like many regions in Florida, is focused on reducing its environmental impact.

The Florida government is also examining ways to make infrastructure more resilient, but this comes at a significant cost. “While the total cost statewide has not been determined, experts say that hardening Florida’s infrastructure will require tens of billions of dollars, with at least $8 billion in the three-county Tampa Bay region alone,” according to the Tampa Bay Times.

Another initiative is in monitoring the impacts of rising sea levels, a matter which Pinellas County Environmental Director Kelli Hammer Levy took into her own hands. There was no sea-rise tool that considered linkages between bridges, sewer lines, evacuation routes and other infrastructure until she created it. The tool is now required for county projects and recommended for other development.

And the private sector is also getting involved in these initiatives. Strategic Property Partners is a developer with six projects under construction, three of which are new. In the buildings, the developer has been adapting to the dangers posed by rising sea levels by elevating the entire sites, putting critical systems up higher in the buildings — 30-some feet up in the buildings for the most part. Green roofs have been installed to absorb storm water runoff.

CONSTRUCTION & INFRASTRUCTURE OVERCONSTRUCTION OVERVIEW VIEW

T.J. Szelistowski President Peoples Gas

How is Peoples Gas innovating in terms of technology?

The last time we spoke, we discussed implementing gasfired heat pumps that use natural gas instead of electricity for air conditioning. We are currently working with several customers on installations of this technology.

Additionally, we have installed the technology in three of our facilities and have been pleased with the performance. In terms of other technologies, we are targeting farming and waste facilities that release methane into the air. Our environmental solution is to capture that methane and clean it up to reinject it into the system. This not only provides a cleaner form of natural gas but also reduces methane emissions. We look forward to announcing some significant projects with this technology in the near future.

For many, making housing hurricane-resilient is an endeavor that conflicts with affordable housing, but the Tampa Bay Regional Planning council’s new Resilient and Energy Assessment of Communities and Housing (REACH) program is the first step by the authorities to bring both concepts together to make housing in Tampa Bay more sustainable. The program was recently awarded a $500,000 grant to increase the region’s affordable, resilient housing stock and identify strategies to mitigate climate risks. In Gov. DeSantis’ latest budget proposal for Florida, the House approved $147 million for affordable housing programs, including $25 million for the hurricane housing recovery program.

Utilities Water Tampa’s water infrastructure is struggling to cope with the demands of a swelling population and dwindling public investment. But last summer Hillsborough County took the first steps to address its water woes by announcing a plan to inject $171 million in the rehabilitation and replacement of 147 miles of

How is natural gas able to help meet sustainability goals and reduce environmental footprints?

Natural gas is the perfect partner to renewable solar energy to provide capacity when the sun is not shining and to ensure energy is available to customers around the clock. Additionally, natural gas can provide great environmental benefits by replacing diesel fuel usage in large vehicles, such as buses and waste-management trucks.

Why has natural gas failed to penetrate the market in Florida in the same way it has in the Northeast?

Natural gas interstate transmission pipelines are relatively new to Florida compared with the Northeast, having been introduced only in the 1950s.

In addition, natural gas is a primary source of space heating in many parts of the country. With limited space heating in Florida, natural gas is primarily used for cooking, water heating and clothes drying in addition to industrial uses. We see a great desire for natural gas by people who have moved from other parts of the country and have enjoyed using natural gas in the past. www.capitalanalyticsassociates.com

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Catherine Stempien President Duke Energy Florida

What advances have been made regarding the company’s clean energy projects in the region?

We are still in the process of building 700 megawatts of solar in our system and that will be completed by 2022.

We are making significant progress on that. We are either operating or in the construction phase for about half of those megawatts. We brought two new solar plants online in December, at Lake Placid and Trenton, and we have two being completed in the first half of this year in Fort White and DeBary, with two others just announced in North Florida. The other area where we have really made progress is in battery storage. We have said that we are going to build 50 megawatts worth of battery projects, and we have made announcements for three of these projects located in Trenton, Cape San Blas and Jennings. Often, people think about batteries as the connection between our solar farm and a battery. The battery charges when the sun is up and when the sun is down the battery discharges that energy. But batteries can do much more for our system. We have been testing a lot of cases for battery use, and the projects that we are going to be doing will help improve reliability for our customers, giving them more reliable power.

How is the company ensuring customers get the energy they need?

Our customers want power, and they want that power to stay on 24/7. We are midway through deploying our selfhealing grid technology. About 50% of Pinellas County is covered by this technology now. If you think about the electric grid as a highway system, when you have a traffic jam somewhere in that system you want Waze or Google Maps to redirect you around that traffic jam. The grid works the same way: if we have an outage, or a tree falls down on a line, you want to be able to redirect the power around that problem to make sure that people can get their energy. This technology does that automatically. We have sensors and communications devices all over our grid that automatically reroute the power and minimizes the problem, reducing the number of customers impacted.

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stormwater pump stations, pipes and other failing infrastructure. The initiative would be funded by increased water rates that could exponentially increase costs for the end users.

In his proposal, DeSantis requested more than $625 million for environmental projects for Florida’s state budget, including $122 million for wastewater and stormwater grants. Another way St. Petersburg is funding sewer pipe repairs is by changing legislation that allows authorities to order residents to repair issues on their own property. But one initiative that is sorely lacking in Tampa’s water funding is public-private collaboration.

Electricity The electricity sector has much more private sector investment, which is clear from the innovative initiatives being rolled out across the Tampa Bay region

118,400 out of 174,100 jobs in alternative energy were related to energy savings.

INFRASTRUCTURE ANALYSIS

as well as the funds being invested. In 2018, NextEra Energy signed an agreement to buy Gulf Power and Florida City Gas from Southern Co. in a deal valued at $6.5 billion, which would add almost 500,000 clients to NextEra’s customer base.

But despite private sector involvement, Tampa’s electricity sector is sometimes not reliable enough. In January 2020, almost 35,000 Pinellas county customers were left in the dark after swathes of electricity outages.

Pinellas County Criminal Justice Center was affected and six schools had to close in the tract between the St Pete-Clearwater airport and the Historic Old Northeast neighbourhood.

Alternative energies With even conventional power generation methods susceptible to failure, this is when alternative energy

generation looks more attractive, and utilities are embracing a move toward cleaner energy sources.

Particularly, solar energy has taken the spotlight because of the high solar irradiation levels across the state of Florida, bringing costs down to competitive levels. In fact, new electric power is being generated by solar at lower cost than could have been attained by plants burning natural gas. “It is vital for everyone to work toward clean energy solutions. We take pride in being subject-matter experts and understanding what our customers need. CNG and liquid natural gas (LNG), while more environmentally friendly than traditional petroleum options, may not be suitable for all modes of transportation. There is room for electric and hydrogen technologies too, so we need to understand which technologies pair better with which fuel source and the impact that has on the environment,” said Anddrikk Frazier, president & CEO of Integral Energy.

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INFRASTRUCTURE ANALYSIS

Forida is the Sunshine State, but solar energy has only recently started to gain traction.

In October, Tampa Electric received approval from the state to build two large solar-power projects in Hillsborough County – one 74.8-megawatt project and a 74.5-megawatt project, with both expected to begin operating this year. Florida Power & Light’s 30 by 30 project plans 30 million solar panels by 2030 and TECO has installed a 55 MW solar project between Bartow and Lakeland.

The irony of solar finally gaining prominence isn’t lost on some, as Ward Friszolowski, president of Harvard Jolly, pointed out in an interview with Invest:.

“One of the more exciting new technologies is solar.

Everyone is talking about Florida being the Sunshine State and wondering why we haven’t been focusing on this up until now. The reality is that the return on investment has not really been there until now, and now we are on the cusp of huge demand. But at the same time, we still have the hurricane danger, which has certainly added to the cost burden. Having said that, I see it as an emerging, strengthening sector.”

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Tampa Electric will build two solar projects in Hillsborough County totaling 149.3 MW likely require significant investment, and the region’s pockets are not deep enough to meet the demands of an expanding population and rising sea levels.

In January 2020, the city held its first resilience leadership summit in an effort to tackle Tampa’s vulnerability to weather events, in one of the first initiatives prioritizing the issue. But the conference faced sharp criticism from Mayor Castor, making it clear there is still a long way to go to change mindsets.

“We’re coming to the resiliency conference, and there’s a thousand cars out front,” she told journalists. “Not a good sign.”

Transportation & Logistics: Transportation infrastructure is a pressing priority for authorities in the Tampa Bay area, given an expanding population and a strong economy that is pumping up demand. Whether sky, sea, rail or road, the fix is on across the board. Out-of-the-box thinking is helping, but the controversy over a penny tax could mar the region’s efforts.

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Hard at work: The region is taking measures to alleviate congestion through alternative transportation options Tampa Bay’s population has skyrocketed over the last few years, climbing over 3.1 million in 2018 from less then 2.8 million in 2010. Such population growth requires the infrastructure to cope with burgeoning demand and 2019 was a busy year for the area in this regard.

Most of the activity centered around aviation, although that was before COVID-19 threatened to reshape the landscape through the rest of 2020. United Airlines laid the flagstone for its new facility at Tampa International Airport, pledging a $33 million investment, and Pinellas County agreed to a five-year deal with Allegiant Air for the St Pete-Clearwater International route, worth $14.2 million in airport revenues.

In the railway segment, Virgin Trains and Disney signed an MoU agreeing to install a train station at the theme park along the Tampa-Orlando route, and FDOT announced plans for new CSX railroad bridges for the high-speed rail. The Tampa Bay Area Regional Transit Authority also sat down with air taxi companies Bell Flight and Lilium to discuss the possibility of bringing the services to the city.

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County was the controversial penny tax introduced by authorities to fund key transportation projects. The amendment was put to a public vote and passed in November 2018 with a 57% majority in favor of the 1% increase in sales tax that would generate $280 million annually for transit, bike, pedestrian and road projects.

The spending rules for the funds generated by the tax are strict. Of the total, 45% is allocated to the Hillsborough Area Regional Transit Authority (HART), 54% goes to the county and municipalities for general purposes and the remaining 1% is allocated to the Metropolitan Planning Organization. For the county and cities, 27% is to be spent on safety improvements, 26% on intersections, 20% on maintenance, 12% on bicycle or pedestrian infrastructure and the remainder goes to a general transportation fund.

But 57% in favor still means 43% were against the tax and since it was passed, the amendment has faced tough criticism, with Hillsborough resident Bob Emerson and Hillsborough County Commissioner Stacy White taking the case to the Supreme Court to appeal the constitutionality of the tax. The outcome of the appeal is still pending.

The same tax had been in place in Pinellas County ( )

TRANSPORTATION & LOGISTICS INTERVIEW

What’s Next?

Transportation initiative is focused on ways to improve transit and intersections to make target areas safer without significant expansion

David Gwynn District Seven Secretary Florida Department of Transportation What is the biggest initiative for Florida Department of Transportation in District 7?

We have been working on a program called Tampa Bay Next. Over the last two and a half years, we have had hundreds of public meetings with big and small interest groups, elected officials and general members of the public, which we used to gather some great input.

A key issue that we identified was transportation.

Although we recognize that our interstate needs some work, there are other areas, like the downtown interchange, where infrastructural improvement would have a pretty massive impact on the surrounding neighborhoods. As a result, we are focusing on ways we can improve transit and intersections in those areas to help make them safer, while also not requiring a significant expansion of the highway footprint.

How are you working to mitigate the traffic issues in the region?

We have come to the conclusion that simply widening and continuing to build more roads is not going to completely mitigate this issue. We have shifted our efforts to also look at multimodal solutions, like the streetcar system in downtown Tampa. Until last year, it was underutilized, but we recognized that this could be a good part of a transit system. The question was how to make it more attractive for people to start riding it. What we found was because there was not a lot of local money to fund it, it was only running from 11 in the morning until 8 at night.

We were able to get a grant to allow the streetcar to run from 7 in the morning until 11 at night and on a more frequent basis. The ridership has since tripled, and that is important because we now have a strong case for the federal government to invest in expanding that streetcar system further out into Tampa Heights. If we can get federal funding, they will put 50% of the cost in, the locals put in 25%, and then our department covers the last 25%.

What is the outlook for the transportation sector in Tampa Bay for the next year?

The passage of the sales tax in Hillsborough County was a big step forward because the local money allows us to do things with state and federal matching money.

We will start to see an increased frequency of buses, better stations and more opportunities to expand the systems. On the highway side, we continue to build road and safety improvements. Four hundred of our signalized intersections that had the highest number of crashes are in the process of putting in new LED lighting that will illuminate these intersections at night much better than they have been. We are going to start the Howard Frankland Bridge project, and the Gateway Expressway will probably be completed in another two years. www.capitalanalyticsassociates.com

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Joe Waggoner CEO & Executive Director Tampa Hillsborough Expressway Authority

How are the revenues collected by tolls being used to benefit the community?

The tolling business is built on the idea of how much time we can save a person on a trip. If we can save a person 15 minutes and that person makes $20 an hour, then that 15 minutes is worth $5 to them. That is not the toll we charge, but that is the basis upon which we do that valuation of a future revenue stream. The revenues collected are first and foremost used for the operation and maintenance of the roadway. This means keeping the roadway presentable, in good condition, with clear lines and working lights, thus ensuring the customer experiences a safe ride. We also use the funds to preserve the roadway. Depending on how much use that roadway receives, every 10 to 15 years we have to resurface the entire roadway, and 30 years we have to replace the bridge decks. In a sense, we are essentially rebuilding the facilities every time. We do not sell bonds to do this kind of work, that comes out of our revenues, so we have had to create a sinking fund to make sure we are taking care of this.

What initiatives are you working on to advance the future of transportation?

This agency is an early adopter. One project we are working on is our Connected Vehicle Pilot Project (CV).

When we look at this tech, the big benefit we see is safety. When we talk about autonomous vehicles and connected infrastructure, there is an opportunity to cut the fatality rate significantly. We believe, if for that reason alone, we should be doing everything we can to get that technology out there sooner. We pursued the CV pilot with the federal government three years ago because we want to do what we can to make it happen sooner. We received a grant for $17 million and we added an extra $5 million to conduct this pilot project. We want to determine how the vehicle can communicate with that system and send out information to those other participants in that transportation environment to make it safer and to work more efficiently.

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( ) since 1990 and in November residents extended the program for the third time. Over that time, the funds have been used for a variety of projects across infrastructure, public safety and recreation. Notable projects are development of 15 stormwater drains, reconstruction of seawalls, bridges and sidewalks and allocation of funds to the emergency services for equipment and facilities.

Other initiatives are also under fire. In November, engineering firm H.W. Lochner filed plans for the new 10.3-mile Central Avenue Bus Rapid Transit Project connecting Downtown St. Petersburg and St. Petersburg Beach. The entire project is estimated to cost $43.9 million and is slated to be live in 2020/2021 but has faced opposition from the city of South Pasadena and the city of St. Pete Beach.

Airports Tampa International Airport generates $14.4 billion in economic impact every year, employing 10,500 people directly and supporting a further 121,000 indirectly. TPA topped its projections for passenger growth in fiscal year 2019, serving over 22 million passengers, up 5.5% on the previous period to a record high. The airport is also the 24th busiest in the United States. Of those busiest airports, Tampa International ranked 10th in terms of affordability, with an average fare of $308.88, compared with the most expensive Washington Dulles International Airport (IAD) in Virginia, which came in at $427.37 and the cheapest McCarran International (LAS) at $240.35.

According to JD Power, Tampa International also ranks very highly in terms of customer satisfaction among large airports with 10 million to 32.9 million passengers per year. Tampa scored 822 out of a possible 1,000 on its satisfaction index, coming in behind only Portland International Airport and Dallas Love Field Airport.

One of the reasons for the ranking was the affordability combined with options to fly to a wide range of locations, and Tampa International continues to expand its footprint. In October, Frontier Airlines announced new low-cost fares from Tampa to Atlanta starting at just $19 and in November, the same airline launched a non-stop service from Tampa to San Juan. At the end of last year, budget airline Norwegian announced the expansion of its TampaLondon service to three weekly flights in response to high demand. Spirit Airlines also launched new nonstop flights from Tampa to New York, Newark, New Jersey, Nashville and Indianapolis, taking its destination count from Tampa to 24 locations.

TRANSPORTATION & LOGISTICS OVERVIEW

Whit Blanton Executive Director – Forward Pinellas

Our challenge in Pinellas County is that we are not growing like Pasco, Hillsborough, or Manatee County. We are expected to add about 90,000 people by the year 2045, which is a small fraction of what the other counties are expected to have. We have to plan and think differently. We have a situation here where the average new worker in Pinellas County is almost 50 years old, so we are not attracting young workers, except maybe in St. Petersburg, but most young people can’t afford to live there. Our strategy is really aimed at the future of our workforce, how do we draw talent and how do we retain this talent. We believe the solution is investing in housing and better mass transit services.

Another reason Tampa is growing in popularity is because of its accessibility. Early this year, Tampa International announced it was the US’ first bikefriendly airport, a recognition awarded by the League of American Bicyclists. TPA is building a bicycle and pedestrian trail around the airport’s new SkyCenter development, eventually intended to connect Tampa Airport into a wider regional trail network. SkyCenter One, an office building that is part of TPA’s ongoing multiyear modernization plan, will also have indoor bicycle commuter facilities for employees, including bike racks and repair stations that promote cycling to work.

The airport’s modernization master plan is now in Phase 2 of the $2 billion project that will update the airport from curbside across all aspects of the airport.

2019 saw the airport break ground on its SkyCenter One office building. By February, workers had started placing the foundations for the building and adjacent parking garage, according to TPA’s website. The latest plan, approved in 2013, will allow the airport to eventually accommodate up to 34 million passengers a year.

Airlines are also building a bigger presence at the airport. This past summer, United Airlines broke ground on a new $33 million hangar at the airport. The facility will be a 66,000-square-foot two-bay maintenance hangar and apron to accommodate 737 and 757 aircraft on 9.5 acres east of the airfield. It will have capacity for three 737s and there will be an additional 17,620 square feet of office and shop space upon completion later this year.

Tampa International is not the only airport in the Tampa Bay region that is investing in its future. This

September, the Federal Aviation Administration awarded St. Pete-Clearwater International Airport $19.75 million for a runway rehabilitation project. The project will be completed in 2021 after a total investment of $24.1 million. St. Pete-Clearwater is also taking the trend of mixed-use seriously and will use a part of the land for a hotel development and office space. Developer Brookline PIE Ulmerton signed a ground lease in March 2019 for 3.68 acres of space. When complete, the development is expected to contribute $356,940 to the airport in revenues every year.

To further cement its position as an airport hub, the Tampa Bay authorities are floating the idea of a sky taxi that connects Tampa International and St. Pete-Clearwater for more seamless travel and easier connections. Although this plan is still at an early stage, Pasco County Commissioner Kathryn Starkey has said that talks have taken place with Bell Helicopter, which operates an air taxi service at Dallas-Fort Worth in conjunction with Uber.

Budget carrier Allegiant Air also is betting on the Tampa Bay market. Late last year, it agreed a fiveyear deal with St. Pete-Clearwater that will provide the airport revenues of roughly $14.2 million as well as investing $4 million to construct a new airline support facility at the airport. Allegiant operates nearly 95 percent of the flights at the St. Pete airport and also contributed highly to the growth of the Sarasota Bradenton International Airport, which broke records in November when it served 182,607 passengers. Growth was spurred by Allegiant and Frontier Airlines, according to airport CEO and President Rick Piccolo. www.capitalanalyticsassociates.com

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TRANSPORTATION & LOGISTICS OVERVIEW

M. Kelly Hendry

President – Hendry Marine Industries, Inc.

The most exciting aspect about the marine industry is that it is one of the last places where a young person can come in with nothing but a strong, resilient heart and a high-school diploma and make $100,000 a year by the time he or she is 30. This industry does not require college degrees for professional success. All three of Gulf Marine’s vice presidents started here when they were 18, all without college degrees. We are vehement advocates for career and technical education. We provide an in-house training center where our iron workers can build their skill sets in a hands-on environment while learning the science of welding from a seasoned expert.

Port Tampa Bay Tampa’s busy port is also breaking passenger records.

In 2019, Port Tampa Bay broke its record for cruise passengers and welcomed cargo service from as far as China, Vietnam, and South Korea. One priority for CEO Paul Anderson when he was awarded the position in 2012 was a direct service to Shanghai, Singapore and other Asian ports, despite headwinds such as the US-China trade war.

Next on the agenda is further growth in Asia and more cargo trade with Mexico, according to Anderson. As a result of the new USMCA trade agreement that replaces NAFTA, 75% of a vehicle must be produced in Canada, Mexico or the United States to be exempt from tariffs.

While rail now shoulders most of the burden of shuttling

components between the three countries, Anderson wants ships to have greater penetration in this segment.

Already, Port Tampa Bay is Florida’s largest cargo tonnage port, generating $17.2 billion in economic impact and creating 85,000 direct and indirect jobs.

But preparations to future-proof the installations include addressing climate change-related issues, to which the port is particularly vulnerable. For example, 45% of Florida’s gasoline supply is pumped into tanker trucks at the port, an exercise that is threatened by rising sea levels. Port Tampa Bay cannot simply raise its cargo cranes and cruise ship gangways because they were designed to operate at current levels, but the port is working with an engineering firm to come up with solutions to the problem. ( )

TRANSPORTATION & LOGISTICS INTERVIEW

Deep impact Port Tampa Bay delivers a $1.2-million-per-hour economic impact and is No. 4 in the state for cruise tourism

Paul Anderson CEO Port Tampa Bay What is the impact of the port on the region as a growth and economic engine?

We are economic developers here, with the mindset of a private company that’s developing real estate and jobs, and creating economic impact. To that end, we serve the l-4 Corridor, which is growing by about 950 people a day. We have a $1.2 million per hour economic impact in the state of Florida. A large percent of that growth is being captured in the region that we serve.

How important is the cruise industry to the region’s overall tourism market?

When you look at the cruise industry, and in particular for the state of Florida, it is about 13.5 million passengers just for the state, mostly via Miami, Port Everglades, Port Canaveral, Port Tampa Bay and others. Miami, Everglades and Canaveral are No. 1, 2 and 3 in the world. We are No. 4 in the state. Our cruise portfolio is a little different because we are on the Gulf Coast, we are not as far south and it is really the Gulf Coast versus the Atlantic, where the other three ports are. The cruise lines here offer cruises with a Western Caribbean itinerary. We are also handling midtier ships, not the smallest but certainly not the biggest, because of the restriction caused by the Skyway Bridge. We don’t get the new mega cruise ships, but the previous generation of ships that have undergone expensive refurbishing.

All our cruise partners, including Royal Caribbean and Carnival, have been very successful with that and ours is a nice midport for them.

In October 2020, we will add two new cruise lines, Celebrity Cruises and MSC, bringing our total to six cruise lines. Recently, we received awards from both Royal Caribbean and Carnival. They measure things like customer service experience, getting on and off a

vessel and parking. We received two of the top awards from those cruise lines.

How can Port Tampa Bay mitigate events like the Coronavirus outbreak on logistics and distribution?

You always plan for the future. Resilience has become a big word in every industry, and our business has built in a lot of resilience. We have done a number of things regarding planning, and not just for global economic events or health events that could impact the economy. We are the first port certified as storm ready by NOAA, and we have a co-location site where we can run the port. But the No. 1 thing we’ve done is to continue to diversify the port’s portfolio. When you have a couple of cargos versus, in our case, seven or eight different cargos and lines of business, it gives you greater resilience. www.capitalanalyticsassociates.com

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Beth Alden Executive Director Hillsborough Metropolitan Planning for Transportation

How are you gauging the community’s needs in regard to new transportation options?

We have been engaging the public with an online survey, which is an interactive, gamified survey to ask folks about their priorities in regards to transportation.

We received 5,200 responses, and it is amazing how many people are saying that they want a better rapid transit system. We have also discovered that they are very interested in reusing the freight rail tracks. That would require an agreement with CSX, which owns those tracks, but it’s a very underutilized asset. There’s no freight rail track between downtown Tampa, the airport and the Westshore Business District, and it will take some extra steps to create that.

How are you encouraging people to use alternative forms of transportation?

In regard to transit, having some form of passenger rail system or rapid transit system would be one way we could do that. The important point with a rapid transit system is that we provide a way for it not to get stuck in traffic, so we need to provide some space for it to run and get out of traffic. We can do this with our bus system by providing special bypass lanes for buses where there is room on major roads. The walk and bicycle infrastructure is really important as well. People do not realize how many trips they make that are less than two miles long. If there are safe ways to walk or bicycle, then they do not necessarily have to be putting another car on the road to make that short trip.

What are the short-term investments planned for the new Hillsborough transportation tax?

We will start with the essentials: resurfacing, safety and smart traffic signal projects. Almost half is for transit, starting with expanding the bus service so it runs on evenings, weekends and often enough that you do not have to spend an hour waiting for a transfer. This is an amazing opportunity to implement the changes we have been planning for years.

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In November 2018, a penny tax was passed with a 57% majority in favor.

( ) In August, the port also announced it would expand its container terminal with a new berth at Hooker’s Point at a total cost of $64.5 million. The aim is to allow three ships to dock simultaneously and is slated to be completed by 2022. Further projects such as the refurbishment of the Richard E. Knight petroleum terminal complex, development of Port Redwing’s bulk-handling facilities, expansion of Eastport, renovation of cruise terminals and enhancement to rail and roadway links are part of the strategic plan designed to position the port for the future.

Port Tampa Bay serves 74 million cruise ship passengers, the lion’s share of whom are visitors who do not reside in the area. To further cater to visitors, the port will double the number of cruise lines that call it home to six. MSC Cruises, Celebrity Cruises and Holland America will join Carnival, Royal Caribbean and Norwegian in 2020. MSC Cruises’ Armonia vessel alone has capacity for 2,000 passengers.

TBARTA Transit remains a priority for the state and for Tampa

TRANSPORTATION CONSTRUCTION & LOGISTICS OVERVIEW

Bay. Last July, Gov. DeSantis signed off on a budget that included a record $2.5 million in funding for the Tampa Bay Area Regional Transit Authority (TBARTA) to develop the transit technologies of the future. TBARTA was established in 2007 to oversee the transport needs of Hernando, Hillsborough, Manatee, Pasco and Pinellas counties in coordination with the Florida Department of Transportation (FDOT). The authority was designed to study and develop transit innovations and as of 2019, it manages a variety of services such as Vanpool, Carpool and BikeBuddy that promote decongestion and affordable transit for residents.

In 2018, Tampa Bay’s transit authorities, including the HART, the Florida Department of FDOT, Pasco County Public Transportation (PCPT) and the Tampa Bay TMA Leadership Group, launched the Regional Transit Feasibility Plan that aims to optimize already high-performing assets such as the Wesley Chapel to St. Petersburg connection and Downtown Tampa to USF. Because of the high cost of the plan at almost $3 billion, the authorities decided to implement a smaller-scale catalyst project that would help stimulate the remainder of the plan. The final 41mile bus rapid transit will run from Downtown St. Petersburg to Wesley Chapel in the I-275 corridor and TBARTA will be the primary recipient of the plan and will be responsible for its implementation at a cost of $380 million-$455 million.

But TBARTA is also overseeing much more innovative projects. In December, the agency was given the green light to go ahead with a $220,000 feasibility study on a potential hyperloop project in conjunction with Virgin Hyperloop One. Likely connections would be TampaOrlando or Tampa-Miami but the technology is still far from ready. This is part of a $1 million package allocated from the Florida Legislature to study and develop innovative transit opportunities that include Hyperloop, aerial gondolas and air taxis.

Ride-sharing Tampa Bay desperately needs an innovative solution to its traffic problems that may be provided by the outside-the-box thinking of TBARTA. But there are questions over whether transit agencies go about their incentives in the right way.

For example, Pinellas Suncoast Transit Agency began subsidizing Uber, United Taxi and Wheelchair Transport journeys for those taking public transport in an attempt to solve the “first mile-last mile” issue. The Direct Connect program provides a ridesharing service at a cost of just $1 to incentivize

David Green Executive Director Tampa Bay Area Regional Transit Authority (TBARTA)

Why is TBARTA essential for fixing the transportation issues in Tampa Bay? If you ask people in Tampa Bay what the most important issue facing our region is, transportation is always No. 1. We have many problems related to transportation, including congestion and limited mobility options. All of this is the result of not having enough regional mass transit options for people to take advantage of. There was a study done a couple of years ago indicating 80% of Tampa Bay commuters are in single occupant vehicles. The reason people are in their cars alone is because they have no other choice. In addition, the study showed 20% of commuters in Tampa Bay travel outside of the county in which they live to get to work.

That’s where the need for regional transit comes in, transit to get from major activity centers in one county to another, but there is very little of that right now in Tampa Bay. TBARTA’s role is to work with local transit operators to come up with viable solutions and mitigate these problems.

What is the expected impact of the 41-mile BRT project connecting Hillsborough, Pasco and Pinellas counties?

We’re calling that Regional Rapid Transit, or RRT. It’s a project that came out of a previous feasibility study called the Regional Transit Feasibility Plan. We looked at all the transit studies that had been completed in Tampa Bay for the past 40 years, and all the corridors that those studies covered to identify the most feasible corridor for a regional transit solution. This 41-mile RRT project covers service across three counties, and it’s a highway BRT utilizing the interstate as opposed to a traditional, arterial BRT. Regional Rapid Transit will be high quality transit with many of same features people want from light rail, but at a fraction of the cost.

It’s quick, frequent, safe and reliable, a great alternative for commuters who do not want to get in their cars and drive by themselves in an hour’s worth of traffic to get to work. www.capitalanalyticsassociates.com

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TRANSPORTATION & LOGISTICS OVERVIEW

Cesar Hernandez Founder & CEO – Tampa Bay Mobility Alliance In order to achieve a sustainable rate of growth we have to get our transportation system in order. Every day, 150 people move into Tampa Bay. Currently, Tampa Bay, Orlando and Miami are megaregions in the United States that lack serious connectivity, which makes us an anomaly. Eventually, growth will slow down and people will stop coming into the region if we cannot connect them. We are reaching a critical mass where we have to get this right. Once we do have a robust and sophisticated transportation system to move people, then we will be competitive with not only the country but the world. Simply put, if a region like ours isn’t growing, it’s dying.

people to take the ride to the bus stop. While trying to encourage residents to ride the bus, the move has been criticized as counter-intuitive as it creates more traffic for the first or last leg of the journey and the participating company charges the full fare, which is then subsidized by taxpayers. “By reducing the cost of individual rides, Uber and Lyft also draw a privileged subset of passengers away from public transit systems. That, in turn, undermines support for public transportation,” said an op-ed piece in the New York Times criticizing the move. “Researchers have also found that ride-hailing tends to make cities more congested and polluted, not less ... All of this erodes the fundamental idea of public transportation as a service that everyone uses.”

But it is not just discounted services that ridesharing companies such as Uber are offering to entice new customers. In July, Tampa was one of the first cities in which Uber Comfort was rolled out, a service that comes in at 20-40% more expensive but provides extra perks, such as a more spacious trip in newer cars and the option to have a silent journey and even set the temperature on the car’s arrival. All of these options seem to be diminishing support for services that are provided at no cost. Free ride-sharing company The Nickel Ride closed down in July as a result of a failure to attract funding for its operations in Saint Petersburg, Fort Myers and Cape Coral.

Road work Despite best efforts to promote ride-sharing and public transport, authorities are running into the same congestion problems across Tampa Bay. Late last year, two separate projects were proposed for road widening because of the level of congestion on the roads.

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In October, Hillsborough County commissioners approved the widening of the Bell Shoals Road between Bloomingdale Avenue and Boyette Road, allocating $65 million to the project that adds two vehicle lanes, a bike lane and a sidewalk in both directions. The latest draft of the 2045 Long Range Transportation Plan also includes the widening of State Road 60, a $1.4 billion project that has created controversy among residents and commissioners alike.

While widening of the roads and adding tolls can reduce budgetary burdens for authorities, many residents believe there should instead be more mass transit options and protected cycling options so that more use of State Road 60 through Brandon is not encouraged. In November the issue was debated at length, after which point the Hillsborough Metropolitan Planning Organization voted not to include the proposal in the final plan.

Looking ahead There is no mistaking that transportation infrastructure in Tampa Bay is a priority for authorities, which was clear with projects such as the $1.4 billion allocated to the reconstruction of the Interstate 275/ State Road 60 Westshore area interchange in Tampa.

Tampa is ranked ninth in the state in terms of shortest commute time, at just 18.7 minutes. And through groundbreaking initiatives such as Hyperloop, air taxis and autonomous vehicle test tracks driven largely by TBARTA, Tampa is finding its foothold in innovative transportation. But the immediate future is uncertain given the emergence of the COVID-19 virus and its widespread economic impact that could result in a juggling of priorities if containment measures go on for too long .

Banking & Finance: New national players entering the market, M&As and the continued rise of credit unions marked the year in the Tampa Bay banking and financial services sector. Consolidation has trimmed the number of banks headquartered in the region by 50% over the last five years, yet, just in the first quarter of 2019, banks added over $6 billion in fresh assets.

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Bankable: A tax-friendly landscape adds to an already attractive environment for the region’s financial sector The Tampa Bay banking and financial services sector has had an eventful and mostly positive couple of years, with area banks accruing over $6 billion in additional assets, demonstrating impressive returns on those assets, and welcoming some major national players into the local market. The Tampa Bay market also saw a fair bit of internal mergers and acquisitions, as credit unions continue to gobble up community banks to increase their market share, and the consolidation of regional banks into ever fewer massive institutions sharing a growing supply of wealth.

Finally, the Tampa Bay area, like much of Florida, has benefited from an influx of financial firms and wealthy residents, including a few of the Forbes 400 wealthiest Americans, as they flee more expensive states like New York and California in favor of Florida’s 0% state income tax.

The region struggled, however, with persistent issues related to mortgage application fraud and continued fears of a market downturn precipitated by the China-U.S. trade war. The spread of the COVID-19 virus is also forcing banking leaders to go into crisis mode. An extended period of lower 96 | Invest: Tampa Bay 2020 | BANKING & FINANCE

interest rates could also hamper profits. The longterm outlook, though, remains optimistic. “(As long as) the spirit of Tampa Bay continues to rise, the market will remain prosperous. It has been a great market for quite some time, and outside of a global economic issue, Tampa Bay is going to continue to do well. I believe that even if the global economy slows down, Tampa Bay is somewhat insulated because it is a place that people want to be, for both a younger and older demographic. There is almost nowhere else in Florida that is as cost-effective, beautiful and offers as many cultural and economic opportunities as Tampa Bay,” said Allen Brinkman, regional president of Seacoast Bank, in an interview with Invest:.

Performance Tampa Bay’s banking and finance sector delivered positive metrics in a number of key areas in the last year, including increased bank assets (and returns on those assets), the continually growing presence of large institutions in the area, and the presence of several high-net-worth individuals living and working in the area. ( )

BANKING & FINANCE INTERVIEW

Passing the torch As the current generation of wealth advisers reaches retirement age, the next generation is being groomed to take over

Gregory Kadet Managing Director & Market Head Florida Gulf Coast, UBS Global Wealth Management U.S. What is the state of affairs for wealth management firms in the Tampa Bay area?

The average age of wealth management advisers nationally is approaching 60 years old. Therefore, recruiting and training the next generation of advisers is paramount to our industry today. Specifically, there are a number of paths to becoming a financial adviser at UBS. One path in particular is our intergenerational program called IGAP, which is dedicated to developing the sons and daughters of our current advisers. It is a three-year program and candidates can start upon college graduation. Throughout the program, our young professionals rotate through different wealth management departments, with the goal of producing well trained and capable advisers. We also have our Wealth Management Development Program (WMDP) based in the local market and open to any candidate.

In addition to in-market training, participants attend four development meetings in New York City. Our third program is within our Wealth Advice Centers.

This program is dedicated to generally younger professionals with at least three to five years of experience. They are located in either New York City or Charlotte, and work on teams servicing our emerging affluent clientele. After a few years, they can choose to work in any of our offices nationwide What challenging trends have you identified with regard to working in Tampa Bay? In the last 18 months there has been a marked difference in our transportation flow regionwide. Our company has concerns about future talent retention and possible reduced productivity caused by delays in work mobility. Our wish is for the Tampa Bay community to come together to address connecting our great region for the future. For example, employees and potential new hires in the East Bay (Riverview, Brandon, Valrico,

to name a few) generally will not drive to take on a role in Pinellas County. Even though these areas have employment opportunities, the thought of driving over two hours per day is a nonstarter. Commuting to work is a fact of life for most people; therefore, having multiple transportation options like light rail can bridge both the time and productivity gap.

What are the key factors to keeping Tampa Bay’s growth sustainable?

The recent transportation tax will begin to address our region’s mobility issue. We can, as a region, get it together; it is an easy fix just waiting to be done.

Updating and expanding our highways and adding light rail, will make a significant improvement to work mobility and productivity. www.capitalanalyticsassociates.com

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BANKING & FINANCE OVERVIEW

Terry Igo CEO – Tampa Bay Trust Company

We are very proud that our growth has been 100% organic. We have not acquired any firms, and our business comes through word of mouth from satisfied clients, CPAs, attorneys and other advisers in the wealth management space. So how do we sustain our growth?

Growth is twofold: the appreciation of our clients’ assets and growth through obtaining new clients. New clients continue to come to us because we do a good job. Equally important is our responsibility to hire quality professionals by providing opportunities for not only those who are established, but the next generation of employees and leaders of this company. Businesses have no choice - they either move forward and grow or they move backward. We choose to grow the business, but we do so responsibly so we don’t lose the very culture that our clients and colleagues came to trust in the first place.

The key is to hire exceptional people from the beginning.

( ) Banks in the region added some $6.1 billion in assets Q1 2019 alone. This is despite a 50% decrease in the total number of banks headquartered in the region over the last five years – clear evidence of the consolidation taking place in the sector as institutions acquire and merge with one another, meaning that a decreasing number of institutions vie for control of the ever-growing pool of assets. Of the 24 banks that are still headquartered in the area, 20 posted yearover-year asset gains between Q1 2018 and Q1 2019, according to FDIC’s latest figures. An astonishing 80% of the increase in actual dollars was raised by Winter Haven-based CenterState Bank and St. Petersburgbased Raymond James Bank.

In addition to their strong performance in terms of assets acquired, area banks also performed well in terms of return on assets. According to FDIC data, Charlotte State Bank & Trust, with $368.6 million in assets through March 31 2019, and Englewood Bank & Trust, with $307.4 million, are midsized banks relative to others operating in the Gulf Coast, yet both generated an ROA above 2% in the first quarter – a very strong showing for banks of their size. “Growth runs in cycles, but with the in-migration in Florida it is on a healthy trajectory. The tax reform act that went into effect increased this level of in-migration because it made it so much more attractive to live in Florida. We were recently up north talking to some banking professionals and they were commenting about how much housing prices had declined and 98 | Invest: Tampa Bay 2020 | BANKING & FINANCE

how so many people are wanting to get out of that part of the country due to high expenses. Many of these people want to move to places like Florida where the environment is more capitalistic,” John Thompson, president and CEO of Central Bank, told Invest:.

Another sign of healthy sector performance is the desire of major financial industry players to break into the Tampa Bay market. For example, Fifth Third Bancorp, the 10th-biggest U.S.-based consumer bank in the country, has plans to expand into several Southeast markets with branch openings, including some in the Tampa Bay area. There are good reasons for being in the region, according to Matt Crum, executive vice president of FrankCrum: “Being in the Clearwater/Tampa Bay region has been a huge benefit to our business. It is a fantastic market as the cost of living is pretty low, there is easy access to the No. 1 beach in the country, there are major market sports teams and the region really has everything that any other major market in the country has.

The friendly tax environment for individuals and companies makes it easier to compete on a national level, especially when we are competing against the companies based in more expensive, higher tax environments. This location also helps in recruiting people who live in those environments. The idea of paying less in taxes and living in a great area is attractive to them.”

There is also no shortage of investment opportunities, according to James Darnell, managing

BANKING & FINANCE OVERVIEW

partner at KLH Capital. “There are tons of great businesses in Tampa Bay to invest in. For us to invest in a business it is really a function of the right team and the right business for which we think we would be the best fit. The money involved in these transactions is truly a commodity because most businesses like ours are happy to give capital if it is the right business. The key is finding business owners who have a vision, goals and values that align with your objectives as an investor.” And the opportunities are making investors stand up and take notice. “I talk to entrepreneurs every day, and they’re really impressed when they look at this area. Florida has cost-efficiency associated with setting up shop here.

Some entrepreneurs may go to places like California for their funding but they come back here to set up shop and commit long term to the area,” said Pat Schneider, vice president of Florida Venture Forum.

Further solidifying the attractiveness of the Florida banking market is the arrival of new entrants, said Jack Barrett, president and CEO of First Citrus Bank.

“We are now seeing some new financial institutions entering the region and others expanding their footprint. That trend has been dormant since the Great Recession started. We are staying on top of that trend, especially at a time when unemployment is below 3% in Tampa Bay, which often drives hyper competition and a war for talent.”

Market leaders There were many developments in the Bay Area’s banking and finance sector in 2019 involving regional

A plethora of M&A activity is reshaping the boardrooms of many banks and financial institutions.

Danny Jackson Office Managing Principal – RSM US, LLP

Especially with the news of GSS (Gregory, Sharer & Stuart) in St. Petersburg joining RSM and becoming our newest office, I am optimistic about the future. When we opened RSM in Tampa in 2014, we knew we were going to be investing in Tampa Bay. Tampa is always going to be a place where people want to come because it is such a neat area. Eventually the growth will plateau, but I don’t think that is going to happen soon. Going into 2020, our Tampa and St. Petersburg offices are going to be primed and positioned for new recruits. We are working to create a look and feel that is completely different from our competitors. This may cause some short-term discomfort, but we know it is worth the long-term gain.

www.capitalanalyticsassociates.com

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Jorge Gonzalez President & CEO City National Bank of Florida

How do you combine banking technology with the need to maintain a connection to people?

At the end of the day, we recognize that clients want multiple channels of connectivity, and some want multiple channels at different times. We have to provide that. At some point, they want to speak to a human being. At another, they want to engage with us through their smartphones. Our business model is peoplecentric; we are not a mass retail bank but a private and commercial bank. Our clientele values the relationship provided by people, but we have to provide the best technology to support our people in delivering the best possible experience. We have invested heavily in all the right applications and platforms to support our people and clients. The market has reacted well to our business model. We would not have otherwise grown as we have in the last five to 10 years. You have to make sure you hire the right people. You need to have people who have the right values and understanding of what is important to clients. .

What challenges is the industry facing regarding data security and cyber threats?

The whole industry is facing cybersecurity issues, but the good news is that one of our main investment priorities is cybersecurity and privacy of information.

This is not going away. Having the right size is important because you have to have the capital, the resources and the talent to properly invest in this area. There is not much margin for error.

What risk-mitigation strategies is the bank implementing to address a potential downturn?

In working to address that, we have tried to stay true to a disciplined approach to business, whether at the peaks or valleys of the economic cycles. We don’t get overly excited when things are too good, nor overly conservative when things are bad. At the end of the day, it’s about picking the right clients and the right transactions.

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The banking and financial services sector invests billions of dollars into technology each year.

banks and community banks. Perhaps one of the most significant stories of the year was the $66 billion merger of BB&T Corp. and SunTrust Banks Inc. to form the sixth-largest banking entity in the United States with more than $425 billion in combined assets.

The merger closed in mid-December with approvals from Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corp.

The new bank, rebranding as Truist Financial Corp, will be headquartered in Charlotte, North Carolina, but it will have a considerable regional footprint throughout the Southeast. It is part of a consolidation trend seen across the nation’s banking industry, although the trend isn’t all positive. “M&A can be good for our business because as the transactions are happening, we are usually involved in the diligence side or the valuation side. The flipside to that is when these acquisitions happen, it’s another bank we can’t

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adding $730 million in assets to its portfolio, and will also acquire the Florida assets of First American Bank of Iowa, including a $240 million commercial and residential mortgage portfolio. Assuming the deals are approved by regulatory authorities and completed, the combined entity will control over $4 billion in assets, $3 billion in loans, and employ 1,100 people. These deals signify a trend of community bank acquisition across Florida, with credit unions seeming to achieve dominance, but some industry insiders note that the trend is not likely to continue, due to the simple fact that there is a rapidly diminishing number of community banks to acquire.

Other credit union news includes Forbes naming three Tampa Bay credit unions to its list of Top 10 credit unions in Florida: USF Federal Credit Union (at #5), Grow Financial Credit Union (at #7), and Achieva Credit Union (at #9). Only 3.1% of financial institutions in the entire United States qualify for best-in-state status, so three institutions in Tampa making the cut is huge news for the region’s banking and finance sector. In keeping with the general trend of credit unions providing stiff competition for banks, while banks scored an average 4.2 out of 5 in the survey used by Forbes to compile the list, credit unions scored an average of 4.5.

work with, which doesn’t help us in the long term,” said Adam Thomas, managing partner - Tampa Bay at Dixon Hughes Goodman.

Another key development is the continued ascendance of credit unions throughout the Tampa Bay region. To a certain extent, credit unions are becoming so successful throughout the region that they appear to be replacing community banks, often through merging with or acquiring the banks.

Take MIDFLORIDA Credit Union, as an example.

MIDFLORIDA is the fourth-largest credit union in the state of Florida in terms of total assets, and operates more than 60 branches across state, with a particularly significant presence in Tampa, Lakeland, and the I-4 corridor. Now, through the acquisition of two community banks, MIDFLORIDA will become even bigger: the credit union plans to merge with Ocala’s Community Bank & Trust of Florida, thereby

Regulations The overarching regulatory framework for the banking sector is The Dodd-Frank Wall Street Reform and Consumer Protection Act (DoddFrank), originally passed in 2010 to reign in the behavior of banks and other financial institutions that contributed to the Great Recession of 2008. In 2018, 10 years after the financial meltdown, DoddFrank was subject to a series of rollbacks that eased some of the burden on banks while leaving the core regulatory pillars of the act standing, including tough regulation of the biggest banks, aggressive oversight of financial institutions by the Federal Reserve, and the continued authority of the Consumer Financial Protection Bureau. However, the increase to the “Bank SIFI (systemically important financial institution)” threshold was put into effect, increasing the size at which a bank falls under mandatory increased Federal Reserve regulation from $50 billion to $250 billion. However, although this seems like a considerable weakening of the act, $250 billion is only the mandatory regulatory threshold. The Fed retains full discretion to strictly scrutinize financial institutions of any size. Therefore, the increase was mostly a technicality, and the Fed arguably came out www.capitalanalyticsassociates.com

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BANKING & FINANCE OVERVIEW

New rules in the EU targeting individuals’ banking data will impact how banks, including those in the United States, operate online.

with even greater authority as a result of the changes.

In 2019, there were moves to simplify regulations further, with the Fed taking into consideration bank size when it voted in October to lower the requisite level of cash and government bonds for most banks.

The Fed also voted to lower the frequency for submitting so-called “living wills,” which are the detailed plans banks draft for winding down in the case of a failure.

Banks also were impacted by EU regulations, as new laws came into effect in 2019. These new regulations target individuals’ personal banking data. The first such law is the Payment Service Directive 2 (PSD2).

PSD2 is designed to harmonize and simplify crossborder cash transactions between EU member states in order to make freer trade and more permeable borders within the EU a reality. However, customers should be aware that the new framework will allow certain third-party providers of payment and account information services to access individuals’ bank account information directly and view information such as account balances and spending habits in extraordinary detail. Beyond the obvious data privacy risks, this could also lead to customers having to endure even more targeted advertisements and transfer of their personal data to third parties.

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these third-party providers must apply to become Account Information Service Providers (AISPs) and be approved before they can access private account data. To apply, these providers must be registered in their home country, but they are then free to operate as AISPs anywhere in the EU. The problem is that each country establishes its own standards for accepting AISP applications. This means that some AISPs may be able to access account information in any EU member country in perfect compliance with the law by cherry picking a country with lower standards under which to form and apply. Still, the registration process is a better protection of consumer data than no check at all. A better check is that even a fully registered AISP still requires consumers’ consent to access their data, and this consent must be explicitly requested and provided. PSD2 went into effect on Sept. 14, 2019.

Another EU regulation that affects individuals’ data is the General Data Protection Regulation (GDPR).

The GDPR has been in effect since 2018, but the first enforcement actions began to hit in 2019. One notable example occurred in the U.K., where the Information Commissioner’s Office (ICO) fined British Airways and Marriott International for allowing breaches of confidential customer data. British Airways had to pay $228 million in penalties after a breach that affected 500,000 customers, while Marriott got hit ( )

Jim Daly Regional President BB&T (now Truist)

How has the increased M&A activity impacted the banking sector?

With regard to our clients, M&A activity is very much a function of where a company is in its life cycle. A baby boomer who owns a company that has been growing will be looking at options to grow or to sell these assets.

We can bring strategic advice to companies that are looking at their options. We try to put ourselves in our clients’ shoes to increase shareholder value for their company and obtain the best valuation and outcome.

What are the emerging trends in the industry that you’re keeping a close eye on moving forward?

Truist is at the front end of one of the emerging trends, which is consolidation. Not too long ago, there were 15,000 banks in the country and now we’re down to 8,000. This is down to a number of factors, including the requirement to invest in technology, which takes capital. We feel really good about our ability to invert in technology going forward. Another trend is ease of doing business around technology, and clients are eager for us to solve more problems with advanced technology. A lot of that is compounded by hand-holding in terms of implementation, troubleshooting and problem-solving.

I think those two trends will continue.

What is needed to sustain market growth and ensure a strong economy in the long term?

We need to invest in a couple of key areas. First, transportation has always been a little challenging and this involves making sure everyone has access to the job opportunities in our market. Some markets have done a little better at this than we have. Another area is that we have a severe skills gap. There are a lot of jobs in the Tampa Bay region that require skill levels that many people living in the region are not necessarily qualified for. Our job in investing in the community is ensuring that job mobility is available to every one of our citizens as they launch their careers. This takes investment and communication.

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As technology continues to develop in banking, the need for brick and mortar branches is reduced.

( ) with $124 million in fines for exposing 339 million guest records. Although these were nowhere near the maximum fines allowable under the GDPR, they were a clear signal from the ICO that lax data protection will not be tolerated.

Mortgages As developments spring up across the region, CoreLogic Inc., a New York-based real estate data company, published its ranking of mortgage markets and the news for Tampa Bay-St. PetersburgClearwater was not good. It came in as the sixthworst mortgage market out of all major metro areas in America in terms of mortgage fraud risk in 2019.

In fact, Florida was the third-worst state in terms of mortgage application fraud, and Tampa was the third highest-risk market in Florida, ranking better than only West Palm Beach and Deltona-Daytona Beach-

BANKING CONSTRUCTION & FINANCE OVERVIEW

Tim Schar Tampa Market President SunTrust (now Truist)

How does a large bank like SunTrust (now Truist) retain the personal touch of community banking?

We have a program called “T3: Touch, Technology and Trust,” featured in our new logo. There are some companies out there that are just technology companies and although they have great products, it can be impossible to get someone on the phone to provide support. We had to think about how to serve our communities, but this cannot be done with just touch alone. Consumers want to be able to solve problems through their technology, then they want to reach out to customer support and potentially go to the branch, with the branch employees able to track all their previous interactions with the bank. Part of the synergies of BB&T and SunTrust will be technology-based, and we are making significant investments in this area.

Ormond Beach, which ranked first and fifth worst, respectively.

Still, there are signs of improvement: for the first time since 2016, the nationwide mortgage fraud risk declined year-over-year between 2018 and 2019, partially due to interest rate reductions that caused a marked increase in the total number of low-risk refinance transactions. This dragged the percentage of risky applications down despite the absolute number of risky loans remaining more or less the same. In Q2 2018, 0.91% of applications contained an indicator of fraud, whereas 0.81% of applications indicated potential fraud in Q2 2019.

In other mortgage-related news, the Water Street Tampa development, Jeff Vinik’s $3 billion, 50-district overhaul of Downtown Tampa Bay being carried out in partnership with Bill Gates’ Cascade Investment LLC, received a considerable cash infusion thanks to

What services attract the most demand in the Tampa Bay area and why?

We see things differently than a traditional bank. The days of pushing a specific product are gone. Today, the most demand is for sound advice, especially given the huge access to information people have. Anyone can go on Google and find out almost anything, but what we can provide is tailored advice based on individual circumstances, resources and goals. Our advisorybased market strategy is founded in our industry expertise, understanding of our clients’ business and providing the best-in-class knowledge around financial strategy going forward.

What are some of your goals for the next year for Suntrust (Now Truist) in the Tampa Bay region?

Our initial goal is to help the market understand our capabilities. We now offer a suite of services our customers haven’t really experienced before on a community level. We have more people focused in West Florida today than either BB&T or Suntrust had prior to the merger, and we are still considering expansion.

There is still a lot of work to be done. www.capitalanalyticsassociates.com

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BANKING & FINANCE OVERVIEW

Bank OZK. The construction loan, which closed on Sept. 24, 2019, totaled $664 million. George Gleason, Bank OZK’s chairman and CEO, cited the individuals and companies behind the Water Street Tampa development as the major impetus for the bank extending what happens to be the largest single loan in its history.

Competitive landscape Competition in the banking sector is particularly heightened as credit unions are becoming increasingly competitive throughout Florida, and in the Tampa Bay-St. Petersburg area. Credit unions have been so successful about expanding their market share and competing with local community banks, in fact, that some industry insiders have begun to refer to credit unions as “the new community banks.” Much of this success is achieved through the acquisition of, or merger with, existing community banks by the credit unions. Some experts have predicted that the efficacy of this approach will, in the long-term, be its own undoing; simply put, credit unions are acquiring community banks so rapidly that some worry that soon there will be no community banks remaining to acquire. For many bankers, that cannot happen because of the role community banks play.

“Community banking fulfills a need within the market it serves, especially with small to midsize companies. Tampa Bay is primarily a small-business market. These small businesses are our target market. Typically, we are not focused on large, public companies, although there are some fantastic public companies in the Tampa Bay market. If you have a small to midsize business that is in the higher end of that matrix in terms of revenue size and maturation, those business owners typically want a banker who can provide unique solutions. They want somebody who knows and understands their business and not simply an order taker,” said Gwynn Davey, Tampa Bay regional president of ServisFirst Bank.

In addition to credit unions, there have been numerous other high-profile mergers and acquisitions throughout the Tampa Bay region over the past year. The SunTrust-BB&T merger will no doubt have a substantial impact on the banking industry throughout the Southeast, including in Tampa.

Seacoast Bank is also snapping up other banks in Tampa, with a total of three institutions acquired, two of which were bought within a span of 60 days. The most recent Seacoast acquisition was announced on Jan. 24, 2020, and involved a community bank called Freedom Bank, which was founded in 2005. At the 106 | Invest: Tampa Bay 2020 | BANKING & FINANCE

The Tampa Bay area hosts hundreds of business networking events each year.

time the acquisition was announced, Freedom Bank had two branches in St. Petersburg, total deposits of about $276 million, and loans of $249 million. The Freedom Bank acquisition is valued at approximately $63.6 million and will double Seacoast’s deposits in Tampa-St. Petersburg to roughly $679 million. Back in November 2019, Seacoast purchased First Bank of the Palm Beaches in West Palm Beach in a transaction valued at $32.9 million. Both deals were still pending board approval in early March.

Growth drivers Like many other sectors in Tampa Bay, the financial services industry remains on a strong growth footing.

State-level advantages, such as Florida’s lack of a state income tax and other tax breaks, make it an attractive destination for banks and financial services firms, compared to historically dominant financial markets like New York City. Further accelerating the flight from Wall Street to Water Street was the comprehensive tax overhaul passed in 2017 by the Trump administration, known as the Tax Cuts and Jobs Act (TCJA). In particular, the TCJA changed how the State and Local Tax (SALT) deduction works, no longer allowing residents of states with high state

BANKING CONSTRUCTION & FINANCE OVERVIEW

Rita Lowman President Pilot Bank

income taxes to deduct these on their federal tax returns without any limitation. Now, there is a cap of $10,000 on SALT Deductions, which is far too low to be of any real benefit to the ultra-wealthy; however, the new cap is irrelevant for residents of Florida, where there is no state income tax at all. Consequently, wealthy individuals – and the savvy investment firms that serve them – are fleeing high-tax states like New York and California and resettling in Florida locations such as Tampa Bay. “While generally tax reform is thought to have been a good thing, if you live in these high tax states then you are making less money because you are paying more in taxes. If you have the option of mobility and can work remotely or move your business, then looking at relocating to Florida is one of the best options. I believe this is the reason we are seeing an acceleration of the population growth in Tampa Bay, and as people with wealth continue moving here, it will become an even more attractive place to offer financial services,” said David Maddux, CEO & CIO of Brightwater Advisory. Jeff Goolsby, a shareholder with MSL CPAs & Advisors, said the reform also brought other benefits but the complicated code requires an outside eye.

“People have increasingly realized that the reform has added opportunities for strategies they can utilize ( )

Where are you seeing the most demand for your services?

Pilot Bank owns a subsidiary company called National Aircraft Finance Company. Nearly 50% of our lending is done through aviation which we offer throughout the 48 contiguous states for Pilot Owned, Pilot Flown aircraft. These are smaller planes, not corporate jets, owned by people who really have a passion for flying.

This gives us an opportunity to develop both lending and depository relationships with those clients as well.

NAFCO has been able to successfully partner with several local and national aircraft associations and has built an incredible reputation as a trusted lender in the aviation industry. Another service for which we see high demand is commercial SBA lending. The majority of our SBA lending is geared toward local small businesses like attorneys, doctors and of course, startups. SBA Lending combined with our extensive Treasury Services allow our local businesses and entrepreneurs to thrive.

What is the best way to keep growth sustainable in the Tampa Bay banking industry?

Sustainability is a continual effort for any industry, not just for the banking industry. We actively review products and services to make sure they are meeting the needs of our clients as well as anticipate needs for the future. This involves listening to our clients and meeting them face to face. It’s a symbiotic relationship.

Bankers are often looked to as problem solvers, and we love the opportunity to be that partner. When our community businesses grow, we grow. Our clients are consistently looking for more efficient ways to do their banking, and technology certainly is a key component.

It is important, however, to remember that technology will never replace the human factor. We have to also look at who is actually delivering that product line.

This is why I’m so passionate about focusing on the development of emerging leaders because there are so many opportunities out there for the young people in our communities. www.capitalanalyticsassociates.com

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®

oundtable:

Key attractions Leading investment advisers discuss the factors attracting capital to Tampa Bay, the impact technology is having on how business is done and the challenges the wealth management industry is facing in the current environment.

Marc Blumenthal CEO Florida Funders

What is the key to attracting more venture capital into the Tampa Bay region?

Ultimately, it’s about the number and quality of companies. While it is directionally accurate to say 2% of US venture capital is invested in Florida, the reality is different because a massive amount of money comes from sources like family offices and other investment vehicles, that oftentimes do not necessarily get rolled up in those reports. Seventy percent of all the dollars that are invested in venture capital happen in four cities: San Francisco, Silicon Valley, Boston, and New York. The figures are skewed by the bigger investments. Florida is the third-largest state by population. It is the third or second, in terms of the number of accredited investors, surpassing New York. We are the 17th-largest economy in the world, with a population of 21 million people. I will be so bold as to predict that, looking toward 2030, Florida will be well into the double-digits in terms of venture capital investment.

How would you describe Tampa Bay’s startup culture and ecosystem?

Exceptional. A lot of people who come to the Synapse Summit are astounded by phenomenal resources such as Embarc Collective, the University of South Florida, University of Tampa, Tampa Bay Wave, Synapse or Florida Funders. There is a tremendous depth of opportunity of customers for most businesses. PwC’s office here is the second-largest in the United States. When you combine the resources with our welcoming and supportive culture, you end up with an ideal place to build your business, life and career.

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Tyler Iller

Senior Vice President & Director of Client Advisory - Florida First American Bank

What makes the Tampa Bay market different?

Tampa Bay is neither a seasonal market nor a snowbird market – it usually stays active year-round, similar to Orlando and a few other Florida markets. On a grand scale, however, this is different than most national markets. When we look at the overall population growth and new households that are moving into Florida, there is a good percentage, I believe around 5%, that are coming specifically into Tampa Bay. This is a significant number. There are also many diversified industries in this region, which is due to the entrepreneurial spirit in the area. A lot of accelerators are starting to open up all around Tampa to promote new companies coming in, which creates a very exciting atmosphere. All of this is beneficial for the banking sector.

What does increased competion mean for the banking sector?

Bringing in more competition to the region is not necessarily better for every financial institution, but I believe it is better for the consumer to have more options. Our SBA lending products, business and commercial banking offerings, and wealth management team enables us to stand out among the competition.

On that same note, our midtier size enables us to get to know and understand our clients, their needs and goals, allotting us a better chance to make a difference in their lives. As a bank focused on midmarket business, we have the ability to compete with larger institutions by offering similar products, while simultaneously focusing on specialized products that larger institutions have moved away from.

BANKING & FINANCE ROUNDTABLE

Travis Jennings CEO & Founder Finance Cape

What do you believe is the best approach to managing wealth?

The family office approach is how the wealthiest among us typically choose to manage resources, and it’s with good reason. My firm’s approach takes elements from the family office model and affords it to our client base who may not be as wealthy as the top 1%, but still deserve and expect this kind of service. One example of this is working with accountants to proactively look at future tax liabilities for clients. There are strategies and solutions that mitigate the impact of large tax liabilities but require proactive planning, which my firm spearheads. It is this kind of service that is important to our clients because it lets them know that we are looking out for their financial well-being both now and in the future.

What is the biggest challenge your business faces in today’s environment?

The biggest challenge to our business is that innovation can be challenging to spread because of stigmas that exist within the financial services industry. Ninety-five percent of folks in the financial services arena have a broker license, which means they get paid for the transaction. We need to begin transitioning off that model and on to more of a fiduciary model where the person who is providing the advice has a vested interest in your success and is held accountable if there were better solutions that were not offered. Getting this message to penetrate the market is very difficult, and there are a lot of people working to make sure this message never reaches the masses.

John McDonald

Senior Managing Director Hyde Park Capital

With the onslaught of new technology in investment banking, how do you maintain the human element?

It is interesting because when we interview young students who desire to be in investment banking, they normally associate it with spreadsheets and discounted cash flow analysis. In the first few years as an analyst they may be doing a lot of that, but this is really a people business. Technology is a great tool for our business, but at the end of the day our clients are entrusting the most important financial transactions in their entire life to you. You have to build friendships fairly quickly out of the gate because to be successful it can’t be just about making money.

What makes Tampa Bay conducive to the success of an investment banking firm?

If we look at all 50 states, Florida is clearly one of the fastest-growing and has been for a long time. Tampa Bay happens to be a high-growth area within a highgrowth state. What is interesting is that with all this growth, we still have very little competition. There are very few, if any, truly high-end investment banking firms that provide a high-end investment banking service to small and medium-sized public and private companies throughout the state of Florida. Why they don’t exist we are not sure, but we enjoy the lack of competition. The other key of our location in Tampa Bay is we have the staying power to weather the storm in the case of an economic slowdown or recession. Within Tampa Bay, we have history, reputation, capital and connections, more than any of the other smaller firms, which is a huge benefit for us. www.capitalanalyticsassociates.com

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Jeff Bonick Chief Practice Officer, Southeast Region – CLA

We are very optimistic regarding growth as a firm, and even more so here in the Tampa Bay market. We’ve experienced double-digit growth during the two years that I’ve been here. We are looking forward to that again in 2020.

One of the areas we are adding is a franchise practice. We’ve seen many opportunities with both franchisers and franchisees. They need someone to help them with their accounting, business plans and things like that. It is a very fast-growing part of our economy and there is a lot of that going on in Florida.

( ) in order to keep more of what they make. We certainly always try to help our clients make more money, but we are also keen on helping them keep more of what they make. The common thought was that they were going to essentially pay less, but they did not realize how else they could use this to their benefit.

I believe they now recognize the need to have an outside consultant and help them with the opportunities available to them.”

There is also the generational factor as the profile of those seeking financial advice begins to change. “When the Great Recession hit, there was a huge shift in the focus of individuals realizing that they need to become directly responsible for themselves. We see that focus even more being heavily driven in younger people who are in the age range of 28 to 35 years old. They realize that if they do not take care of their own financial situation, then they are not going to have financial security for the future. What is unique is that this demographic is still looking for that immediate reward at the same time. As we are building their plans, we have to make sure that their reward/vacation/experience money is accounted for,” said Lance Becatti, private wealth adviser at Becatti & LaRocco Ameriprise Wealth Financial Services.

Private equity deals (PEDs) are another significant driver of growth for Florida’s banking and finance industry. PEDs are buyout-like transactions used to either stimulate the growth of companies or rally those that are financially distressed. Throughout 2018, 118 PEDs closed in Florida, an impressive number despite being down slightly from a record-setting 2017 with 145 deals. In total, 449 companies throughout the state are backed by PEDs, many of which are in Tampa Bay thanks to its booming and diverse economy.

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region is Cadence Bank’s rollout of a $2.5 billion commitment over five years that will work to accommodate the needs of underserved communities where Cadence has a presence. Cadence is No. 17 on the list of Tampa Bay’s largest banks, so the plan’s impact will certainly be felt in the area’s low- to moderateincome communities. The plan involves Cadence partnering with community stakeholders via the newly created CRA Advisory Committee to review the features of the bank’s various mortgage loan projects, with the stated goal of expanding access to home financing.

In addition to the $2.5 billion plan, Cadence will also allocate $686 million for small-business lending to businesses located in low-income areas (or businesses with gross annual revenues under $1 million), as well as $706 million for community-development investment.

Insurance Although Florida is blessed with an incredible climate that washes its pristine beaches in year-round warmth and sun, there is an unfortunate and often destructive counterpoint: hurricanes. Over the last couple of years, hurricane season has been particularly active and destructive, which has led many property owners in Tampa Bay, like people all across the state, to understand the need to purchase insurance.

The demand for insurance in the face of nature’s fury has supported the development of $100 million in premium business across the state, including Auto Club Insurance Co. of Florida, USAA Property and Casualty Insurance Group, and Citizens Property Insurance Corporation. Citizens, is particularly notable, and successful, due to the fact that it is the state of Florida’s official insurer of last resort, boasting premium business totaling $894.1 million in 2018.

BANKING & FINANCE OVERVIEW

A person’s insurability depends on market health and factors specific to the person and their assets.

Being Florida’s insurer of last resort means that state law requires it to insure those who the private market will not insure. Whether an individual is considered uninsurable by the private market depends on the market’s health and other factors specific to that individual and their assets. When the insurance market is healthy, insurance companies are making money and are more willing to insure more people, and take bigger risks. Consequently, Citizens experiences “depopulation,” or a decline in the number of people it covers, whenever private insurers are doing well. However, when there is a dip in the market, as is often the case in the wake of a particularly intense hurricane season during which private insurers had to pay out a lot of money in claims, Citizens tends to receive an influx of applicants. This is why Citizens insured 60,000 new policyholders in 2018.

Citizens’ numbers are further buoyed by the prevalence of assignment of benefits (AOB) abuse in the Florida

insurance market. Many private insurers refuse to provide coverage to residents of areas where AOB abuse is widespread, forcing Citizens to provide the coverage at risk to itself. Citizens and other insurers are dedicated to legislative reform and other initiatives to combat AOB abuse. In May 2019, Gov. DeSantis signed House Bill 7065 into law to reform the benefit.

Looking ahead Despite needing to weather the continued stress of a trade war and anticipated economic downturn, as well as redressing widespread issues with mortgage application fraud, Tampa Bay’s banking and financial services sector is performing extremely well. Bay area banks acquired more than $6 billion in additional assets between 2018 and 2019 and posted impressive returns on those assets, and major national player, Fifth Third Bancorp, also identified Tampa Bay as a target region for

Trevor Baldwin CEO – Baldwin Risk Partners

In our business, we trade on the insights of our colleagues, so one of the very few long-term advantages that we can cultivate is the ability to attract and retain the best talent. Being located in a geography that has a lot to offer, whether it be the tax and climate environment, the development and exciting things that are going on in our various districts, the access to the beach and various recreational opportunities, that fact that it is a great place to live, work, have fun and to raise families has been integral to our ability to attract talent.

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branch openings. The rise of credit unions continues, as they assert their position as “the new community banks” through aggressive campaigns of merger and acquisition.

Finally, of course, it isn’t hurting the local industry that an exodus of wealthy residents and financial services companies from states with higher state taxes and costs of living is settling in Florida’s many attractive cities.

Further out on the horizon is the potential for a recession that gained some steam with the impact from the coronavirus that stretched across borders early in the year. In the event of a recession, which most observers still believe is a long shot for the Tampa Bay area, having a good strategy in place with be a key to riding out the storm. “In the case of another recession, there are a couple steps people can take to protect their wealth.

One step is to have as little debt as possible and not to

overstretch your dollar. For instance, if you are going to get a mortgage, the best move is to purchase a home that you can actually afford. The second step is to build up a solid cash reserve, which should be somewhere between three months of your monthly expenses and six months of your monthly expenses. In a recession, the No. 1 priority should be making sure that you can keep the lights on and pay the bills,” said Jorge Blanco, president of Success Wealth Management.

Yet, many bankers remain optimistic, particularly given the growth and diversification of the economy.

Daniel Dowell, office managing partner at Marcum LLP, is among those holding a positive view of the region’s prospects. He cites the burgeoning startup ecosystem as one reason. “I am bullish. I am in contact with many of our clients, and I know they are continuing to see success.

Even with increased M&A activity in the banking sector, community banks have remained an essential part of the industry’s continued growth.

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BANKING & FINANCE OVERVIEW

Michael Hendricks Office Managing Partner – Tampa, Frazier & Deeter

The one issue that we consistently hear in our industry relates to talent acquisition and retention. I believe this is changing. We see a lot of students from Florida universities deciding to move to the Tampa Bay region after graduation. One of our most successful recruiting tactics has been finding people who want to live in a place like Tampa Bay but who aren’t already here. Of our last 10 hires, four have come from out of market. We offer a lifestyle in this region that is still not on everyone’s radar, and as more people find out about it, they love what it has to offer.

Certainly, for the next few years, there is a lot of strength out there. The growth of startups, particularly in IT, is also continuing to attract a different demographic to the Tampa Bay region. If we can continue to attract these startups by providing seed funding and other support these companies require, that could really change the dynamics of the region.”

Another factor that will play into the success of the banking sector moving foreward is the transition from one generation to the next. Owners of smaller businesses are turning over their companies, or at least planning for succession. Those that fail to put their house in order could watch their assets decline. A new generation of leadership can pump fresh ideas into a company and lead it into the future. “Frankly, most businesses get to the point where the current business owner is getting older and less likely to invest in the future of the business because they are not going to be there to reap the rewards of that investment,” said Mike Ertel, managing director of Transworld M&A Advisors. “As a business owner starts resisting the opportunities to invest, the business starts to decline because there are other business owners who are younger, more enthusiastic and are going to be here for the future, creating a different and more competitive company. If the lack of investment goes on too long, then the original company becomes uncompetitive and less valuable because the market has moved on without them. There comes a point in time when it is healthy for new money and new leadership to come in to keep a company growing and investing in the long-term future.”

Finally, the big unknown for the banking and financial services industry is the COVID-19 pandemic and how it will play out. The potential fallout, especially for smaller businesses, could change the sector’s outlook. In the short-term, some negative impact is certain. www.capitalanalyticsassociates.com

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Market voices: Good advice

Silvana Capaldi

Business owners often think that their business is worth more, only to be disappointed at the number after the valuation. That’s when a professional can come in and suggest adjustments that would increase the value. For example, the buyer may want to know what prospects are in the pipeline, projected future sales, reports or what CRM they are using. Not having that information or tools can decrease the value of the company.

Founding Chair Alliance of Merger & Acquisition Advisors of Tampa Bay

The challenges that we face as a community are related to the economic prosperity of the Tampa Bay Region. The average household income in the Tampa Bay area is $55,000 while the average cost of a home in St. Petersburg is $225,000. The issue of affordable housing is not unique to St. Petersburg. It is an issue for all of Florida. The increase in the average cost of a home is attributable to the great success economically we’re having as a region. Affordable housing is a challenge that the mayor of St. Petersburg and our city council are fully aware of and they are doing a great job of addressing it.

Emery Ellinger CEO Aberdeen Advisors, Inc.

Robert Doyle President & Chief Investment Officer Doyle Wealth Management, INC

We work with companies that have revenues of $10 million to $100 million in sales and are profitable. We bring investment banking services to the lower midmarket, which are these good-sized companies. They are an underserved market in Florida, and really around most of the United States, but in the bigger markets like Atlanta and New York, there are a lot of firms that do this. Being located in Tampa Bay has been a unique opportunity for us because there is not much in the way of competition for our business.

People are starting to wake up. The availability of a Roth 401(k), the lowest tax rates under President Trump since Reagan’s 1986 tax reform, a national debt in excess of $23 trillion, and our aging population are starting to make people question the status quo. They know that something isn’t quite right and that they need that final missing piece to have the peace of mind that all of their bases are covered. At Walser Wealth, we have built our practice on ‘Challenging the Wisdom of Convention’ and we are proud to be that missing piece for our clients. We have built a national practice but love being based in Tampa and working with our Tampa clients.

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Rebecca Walser Principal Walser Wealth Management

BANKING & FINANCE INTERVIEW

Tech takes off Growth remains positive at Fifth Third Bank where technology adoption is picking up pace

David Call Florida Regional President – Fifth Third Bank How have you seen the banking sector trending in Tampa Bay over the last few years?

Everything is moving at a fast pace in the Tampa Bay region, and from my perspective there is not one particular sector or segment of the market that is doing better than another. Our bank has five lines of business in the region: commercial, small business, retail, wealth and mortgage. All five of those lines are doing well and we are still seeing strong momentum.

We have seen this growth for the last four years, and while we are prepared for any kind of slowdown, we haven’t seen any sign of that for the near future.

How much of an impact does technology have on deciding whether to build physical bank branches?

Technology has not taken the place of our physical centers, but everything that we do around technology has definitely taken off. Whether that is depositing a check or checking an account balance, all of these uses are being adopted at a much quicker pace than how technology was adopted in the past. That being said, we believe at least 60% of our clients still want to come to a branch and bank with a human being. That does not mean that they do not want technology, because they do, so it is a balancing act. We are still building branches in the state of Florida, and we will have more branches in the Tampa Bay area too.

How have you adapted to account for the influx of high-net-worth investors coming into Tampa Bay? When we adapt to this influx, it has a positive affect on our business, and this is true for all of Tampa Bay, not just our bank. There are a lot of businesses and people bringing money to Tampa Bay because they see the growth. Outside investment is a huge part of keeping this growth sustainable because we need an infrastructure that matches the influx of people coming to Tampa

Bay. In regard to our bank, we are investing our time and resources into making sure that we are a part of the change so we can help our communities thrive.

What is the most significant challenge facing the banking industry in Tampa Bay? The biggest challenge for us has been attracting and retaining our employee base. We have seen this issue for our customer base as well. Florida as a whole has recordlow unemployment, which is positive but it has caused a bit of an issue that if unaddressed could become a larger issue as the state continues to grow. I believe it is solvable, but we must continue to remain competitive in the advantages that we offer. To that end, we raised our minimum wage to $18 an hour, which has been wellreceived by our employees as well as our community. www.capitalanalyticsassociates.com

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Healthcare: The Tampa Bay region is working to cement its position as a medical hub, not only in the United States but globally. One of the largest employers in the region, and among the highest paying, the sector is attracting the attention of multinational companies and prestigious scientists and researchers as it continues to innovate. A new threat, however, has forced the system into crisis mode: COVID-19.

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Hub attraction: Tampa Bay has made strides to become a medical hub with strong research focus, but the region lags behind other similar centers As the population expands, health needs rise, and the Tampa Bay healthcare sector is taking steps to meet this challenge. Institutions like highly-ranked Tampa General Hospital are improving patient care through expansions or by providing more accessible care, often through convenience services. But the system came under severe strain in early 2020 with the onslaught of the COVID-19 pandemic. The health emergency forced healthcare services to ramp up as the virus tested the sytem’s ability to overcome potential supply shortages and a deluge of patients at emergency rooms.

Healthcare and social assistance is the largest employer in the Tampa Bay region, employing 208,800 people, and the third highest-paying job category is health diagnosing and treatment practitioners and other technical occupations at $67,487 in 2018. A new report from TheSeniorList shows that Florida ranks No. 22 in the United States for the most money spent on healthcare annually. Nationwide, Americans spend $3.5 trillion annually on healthcare – around 18 percent of GDP. The population of the Tampa Bay Area is 2.8 million, with the majority (64.9%) identifying as white, 24.19% as black or African American and 4.19% as Asian. Despite growing populations, primary care appointments are 118 | Invest: Tampa Bay 2020 | HEALTHCARE

dropping. According to data, primary care physicians in the Tampa-St. Petersburg-Clearwater region see 1,376 patients per year on average, a 0.2% drop from the previous year. Dentist visits are also down to 1,735 patients per year, and mental health providers saw a drop to 703 patients per year.

Landscape According to US News rankings, Tampa General is the No. 1 hospital in Tampa-St Petersburg, nationally ranked in five specialities. But plenty more institutions made strides in improving their levels of patient care in 2019. BayCare Health System is one of Tampa Bay’s largest employers, with 27,600 local employees. And Johns Hopkins All Children’s Hospital and Golisano Children’s Hospital of Southwest Florida recently paired up to extend pediatric care across Florida’s west coast. Hospitals are also moving toward more convenient services. Tampa General recently joined forces with Fast Track Urgent Care, which will allow the hospital to enter Pinellas County with 10 clinic locations for urgent care, which are more cost-friendly and can efficiently treat common injuries and illnesses.

Since Tampa Bay is a flourishing medical hub, ( )

HEALTHCARE INTERVIEW

Efficient care Rather than building more hospital wings and buidings, emphasis on efficiency could help drive costs down

John Couris CEO & President Tampa General Hospital What are the most in-demand services for the hospital and what does that say about healthcare in Tampa Bay? Overall, we are growing in almost every area. Part of it is population growth and the other is that we are a tertiary, quaternary hospital that takes care of rare and complex cases. We have patients coming from all over the state and in some cases all over the country to Tampa General Hospital. By the end of September, we had already performed 100 liver transplants for 2019.

That puts us in the Top 10 programs in the country. But the real story is that we had a zero 30-day mortality rate, which is critically important for liver transplants. We are very proud of that.

There are many things that we can’t control as a hospital. We are always looking to recruit and maintain top talent. We focus on how to do a better job on capacity and care navigation. What happens with healthcare in places like Florida, and in Tampa is that hospital wings and buildings are being built all over the place under the argument that the communities are growing. Plus, there is a need to increase bed availability. I think that is the wrong way to go about it. When you do that, you are adding to the cost of healthcare unnecessarily.

When you build new buildings, you are having only a short-term positive economic impact. Our attitude here is to find ways to make our 3 million square feet more efficient and more patient-centered. We focus on finding solutions to drive the cost of healthcare down and the quality up. If we can modernize and reengineer our work, getting better at what we do through efficiency and quality of service without having to build unnecessarily, and putting equipment and people and processes at the right place and time, we can lower costs and pass on that value to the patient.

How is new technology being deployed at Tampa General Hospital?

Our new CareComm center is an 8,000-square-foot technology hub that deploys artificial intelligence, predictive analytics and reengineering to rebuild healthcare from the inside out. We were the first in Florida, the first in the southeast and the fourth in the world to employ this model. It is actually one of the main drivers behind our listing as one of the Becker’s Top 40 most innovative hospitals in the country this year.

CareComm includes 38 LCD displays that monitor the ebb and flow of the entire institution, 30-plus team members from 10 departments running 20 artificial intelligence applications, all managing the flow of the medical center. We have been able to eliminate a half day of stay, and we have been able to take $10 million of inefficiencies, real money, out of the system, and that is only in the first 10 months. www.capitalanalyticsassociates.com

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More than 40% of Florida nurses are approaching retirement age in the next 10 years ( ) there are often more job postings available than qualified staff to fill them. Florida is the No. 1 state facing growing demand but not enough nurses to meet it, according to Rasmussen College. More than 40% of Florida nurses are approaching retirement age in the next 10 years, according to the Florida Center for Nursing. Although some colleges are developing new fast-track degree programs to mitigate the issue, Tampa’s population is still growing and demand is outpacing supply. In June 2019, according to ABC Action News, several local hospitals were actively hiring for significant numbers of nursing positions.

Baycare Health had over 400 openings, AdventHealth Tampa had close to 90, Tampa General Hospital had around 100 job openings for registered and licensed practical nurses, while Brandon Regional Hospital had around 30 open positions. It’s not just nursing.

Many areas are facing a similar challenge. “(Talent attraction) is an ongoing challenge. We are partnering with Hillsborough Community College, while we also look to the universities. The talent that comes from a community college setting is very important to us.

We hire people in call centers, for example, who have to speak to relatives right after a donor passes away.

Our staff will ask that family member very critical questions about the person they just lost. It takes a very special individual to work in our call center,” said Betty Viamontes, chief financial officer of Lions Eye Institute for Transplant and Research.

Although Florida typically has an image of being a retirement community, average ages are decreasing in Tampa. In 2018, the median age of all people in Tampa was 34.6, compared to 37 in 2017. But the state is still backing facilities for older residents, including two new nursing home projects that were approved in July, one of which – a $21 million, 90-bed project – is in Hillsborough County. The state is able to support 120 | Invest: Tampa Bay 2020 | HEALTHCARE

the older generation largely because of a burgeoning working population entering regions like Tampa Bay. In 2018, almost 64% of the population was under 45.

And it is not just elderly care that is seeing investment. New centers of excellence are springing up every day. In August, St. Anthony’s Hospital in St Petersburg announced it would undergo a $152 million renovation to add a new 90-bed patient tower featuring private rooms. Several existing hospital facilities will be relocated to the new building, including cardiology, inpatient dialysis and pre-admission testing for surgical patients.

The Brandon Regional Hospital is also expanding to tackle growing neonatology care. The hospital filed stormwater permits in July to convert the first floor of the neighboring building into shell space while the upper floor will house an expansion of the Neonatal Intensive Care Unit. The $23.5 million undertaking will add 14 additional beds across 8,273 square feet of new space, while renovating 14,636 square feet of the hospital’s existing property. It is expected to be completed by 2021.

Health Policy One of the most significant developments for Florida’s healthcare system in 2019 was the repeal of the certificate of need (CON) law, which evaluates the need for any expansion of medical facilities.

Any hospital looking to establish new campuses or treatment centers in Florida had to apply through the burdensome CON process, which often left healthcare facilities tied up in paperwork and healthcare facilities unable to provide additional services for patients.

Deregulation means the requirement will be repealed for specialty hospitals, such as children’s hospitals but will still be required for nursing homes and long-termcare hospitals.

Already hospitals are taking advantage of the overhauled regulations. Largo Medical Center in Pinellas, Baptist Health in Duval County, Orlando Health Arnold Palmer Hospital for Children, Nemours Children’s Hospital in Orlando and Cleveland Clinic in Weston have all shown interest in expansion of their facilities but have been unable to go ahead because of CON regulations. Baptist Health and Cleveland Clinic both intend to establish an adult bone marrow transplantation program, while Orlando Health Arnold Palmer Hospital for Children wants to open a new pediatric heart transplant program.

The Affordable Care Act (ACA) was also back in the courts in 2019 as a group of Republican attorneys general and two governors argued that the act ( )

HEALTHCARE INTERVIEW

Long-term care Emphasizing patient care beyond the hospital stay helps maintain patient health, and reduces the cost of healthcare

Mike Schultz President & CEO, West Florida Division AdventHealth place. This helps with maintaining health, reducing cost of healthcare and gets us in a space where we are directly connected to the patient.

We have been intentional in making sure our consumers have a wide variety of access to different sites of service based on cost. This allows them to make the smart decision and not go to an emergency room for a simple cough that could be treated at a physician’s office or an Urgent Care Center. We want to be transparent about the costs in healthcare so that consumers can make educated decisions regarding their medical needs.

Why has your organization decided to focus on preventative healthcare?

One of the key aspects of preventive healthcare is our model of never discharging a patient. Historically, hospitals wheel out their patients and wave goodbye to them. We have taken the stance that we don’t ever want to discharge a patient. A visit may end, but we connect with our patients before they leave any of our facilities and ask them if we can assist them through the next level of care. That may be a follow-up visit, a better dietary regiment or access to medication.

We offer 95% of our 200,000-plus annual patients access to care navigation and a large percentage of our patients accept the offer. That is a way of making sure they don’t go home and start repeating the same actions that brought them to the hospital in the first 122 | Invest: Tampa Bay 2020 | HEALTHCARE

What challenges emerge from providing healthcare to diverse demographics, younger and older populations?

In many markets in and around Tampa Bay we are seeing a more elderly population moving in. Retirees are starting to discover the beauty of Tampa Bay. But in general Tampa Bay is a fast-growing, diverse community and it is a large geographic area. The key to addressing the healthcare needs of the diverse demographics is to ensure close to home access points, and the ability to connect any time any where.

We also believe we need to make every effort to make healthcare more affordable. Perhaps the way of the future is to help change the reimbursement model.

Currently, you pay when you are sick, a health system is incentivized to provide services to get you well.

What if we changed that? For example: a health system might get $10,000 a year regardless if you are well or sick. If you get sick, and it cost the health system $25,000 to take care of you, it loses money. If the health system keeps you well, and able to keep medical cost at $5,000 because it was proactive in looking out for your wellness, the system makes money.

HEALTHCARE OVERVIEW

AdventHealth sees over 200,000 patients annually.

( ) had no teeth after the penalty was removed by the current administration. “They argued that since the U.S. Supreme Court had upheld the ACA in 2012 specifically because it was a valid exercise of Congress’ taxing power, taking the tax away makes the entire rest of the law unconstitutional,” according to National Public Radio. The battle could end with the entire act being invalidated, jeopardizing access to healthcare coverage for many, especially in Florida.

Over 1.7 million people enrolled in ACA plans through the Florida exchange during the open enrollment period for 2019 coverage — by far the highest enrollment of any state in the country and an increase of 4 percent on the year. If the ACA is invalidated in Florida, the implications would be substantial. A huge healthcare gap exists because the state has rejected federal funding to expand Medicaid, affecting those with income levels below the poverty line. But this hasn’t seemed to deter Floridians, 1.9 million of whom signed up for 2020 enrollment, again outpacing the rest of the country.

Health insurance As of 2018, 87.9% of the population of Tampa-St. Petersburg-Clearwater had health coverage, with 40.6% on employee plans, 15.5% on Medicaid, 13.9% on Medicare, 15.3% on nongroup plans, and 2.54% on military or VA plans. Between 2016 and 2020, the percent of uninsured citizens in the region grew from 11.7% to around 13%. In Florida, the cost of insuring a single person rose from $4,517 in 2008 to $6,674 in

2018. For a family, the numbers increased from under $13,000 to nearly $19,000.

But health insurance premiums for workers in Florida are among the highest in the country, according to the Commonwealth Fund. In Florida in 2018, this accounted for an average of 14.5% of median household income, up from 10.1 percent in 2008. Florida workers also spent a larger chunk on deductibles than most other states.

Another fallout from the potential elimination of the ACA is the increased funding needed to finance Florida KidCare, a program that covers children up to age 18 and includes a subsidized health-insurance program for school-aged children based on both federal and state funding. If ACA were to end, it could mean the end of federal funding for this initiative. According to economists, costs for the program will continue to rise over the next five years, with an extra $162 million in public funds required by 2024.

That being said, if the ACA is to remain in place, 2020 will be the first year premiums hold steady in the state of Florida as the system balances itself.

Premiums soared in the last few years, mainly as the federal requirement to obtain healthcare was eliminated and insurance companies corrected rates for lower subscriber numbers. But the market in Florida was more stable than anticipated, according to Steve Ullmann, a healthcare policy expert at the University of Miami. This is set to encourage increased subscription in the program.

Current expensive and patchy access to healthcare www.capitalanalyticsassociates.com

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Phillip Dingle Managing Partner HealthEdge Investment Partners

What emerging or continuing trends are you watching in the healthcare sector?

There are a few. One is the increasing application of artificial intelligence and machine learning to various aspects of healthcare, almost all of which is designed to do two things. One is to improve the quality of care by providing for better decision-making as it relates to patients. The other use is from a business perspective, which is lowering the cost to administer healthcare.

Any proposition that can effectively lower that cost is great for consumers, taxpayers and our businesses. We are also keeping our eye on the unknown, which is the political environment after the election next fall, and subsequently, what decisions will be made that will directly affect the healthcare sector.

What are some of the key factors you look at when deciding who to invest in?

We are looking at recurring revenue and businesses that have no more than modest capital expenditure needs.

We also like good management teams, but that is not necessarily essential to our thesis because we have a roster of operators and leaders who can enter the business and really drive growth, improve the company and its governance, improve sales and marketing and help to differentiate the business from its competition.

What is the key to attracting more venture capital and private equity into Tampa Bay? Owners and operators need to think about private equity and venture capital less in terms of how they read about it in national magazines and more in terms of a family office opportunity. We constantly hear negative things about the mega funds and how they treat people, businesses and what their motives and mandates are.

This is entirely different from the smaller, middle-market buyout funds or venture investors who really want to build businesses and are less focused on cutting costs than they are on taking a business that might be a Bbusiness and transforming it into an A+ business.

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In the Tampa Bay region, 1 in 6 people suffer from depression, and 1 in 12 suffers from substance abuse disorder perhaps explains why economists say that 260,000 people from low-income households would enroll in an expanded Medicaid program if the state accepted federal funding. This is around 44% of those eligible for the expanded support. The study showed that 75% of those between 46 and 55 would participate in the Medicaid program, if expanded. In June, the St Petersburg city council voted 6-2 in favor of the Medicare for All Act of 2019, with only one person speaking against the initiative at the meeting.

At a time when it is difficult to incentivize people to sign up for insurance services, companies such as Tampa-based Health Insurance Innovations are coming along with solutions to help ease the process.

It’s online AgileLifeInsurance direct-to-consumer marketplace for life insurance aims to make insurance a little easier to understand. And in a conveniencedriven economy, the idea is working: the marketplace helped its parent generate $381.8 million in revenue in 2019, up 9% on 2018.

Public health Health policy in 2019 revolved around a handful of key themes that are important to life in Tampa: opioids, marijuana use and mental health. In 2018, mental health providers in Florida saw an average of 703 patients per year, representing a 5.89% decrease from the previous year. One Senate bill that was passed in Florida in 2019 was Bill 1418 on mental health, which mandates that “psychiatrist(s) … disclose patient communications to the extent necessary to warn law enforcement of a threat of serious bodily injury or death made by a patient or client.” It also rules that law enforcement must inform potential victims of a threat.

Florida currently ranks 33rd in access to mental health services. In the Tampa Bay area, one in six

HEALTHCARE OVERVIEW

David Pizzo Market President, West Florida – Florida Blue Technology advancement is one of the main areas of focus for our company right now. Putting the right technology in the right place to ensure an excellent customer experience is one of our main goals. A lot of the effort we have made over the last few years is coming to fruition, and it’s now easier for customers to shop for health care, select the right plan and understand what they are getting. I think there will be massive changes over the next five years because there is so much work to be done in communication and engagement with healthcare systems. people suffer from depression, and one in 12 struggles with substance abuse disorder, according to BayCare.

From 2016 to 2017, suicide attempts jumped by 14% and overdoses by 25%. The West Central Florida Mental Wellness Coalition is trying to address the issue by making treatment more accessible for those living in the Tampa Bay area.

In the wake of so many mental health issues that have helped create an epidemic of gun violence in schools, Tampa authorities are waking up to the reality that mental health needs to be addressed.

State Representative Jennifer Webb campaigned to overhaul the Baker Act to target issues when children are involuntarily committed, such as providing the correct mental health support and informing parents in a timely manner. The education system as a whole is also being changed to allow students to take mental health days as an excused absence.

Opioids and their use are also a high priority. House Bill 451 passed in July 2019 addresses nonopioid alternatives, “requiring the Department (of Health) to develop and publish on its website an education pamphlet regarding the use of nonopioid alternatives for the treatment of pain.” This in response to the opioid crisis that still grips Florida. At the height of the crisis, the number of pills entering Florida amounted to an average of 42 pills per resident per year from 2006 through 2012. In 2010, an estimated seven people a day in Florida died from prescription drug overdoses.

But despite efforts of authorities to crack down on opioids, the new epidemic that spawned from that is the current heroin crisis. In 2018, Florida’s opioid death rate reached 25 deaths per 100,000 residents, according to the National Institute on Drug Abuse, a 67% increase on the peak of the pill mill crisis

because of heroin and fentanyl abuse. Hillsborough County authorities have recently established a needle exchange program, following in the footsteps of Manatee County. Hillsborough deputies now are obligated to carry Narcan to counteract overdoses.

In the first half of 2019, Hillsborough opioid overdose deaths totaled 118, according to the Hillsborough County Medical Examiner, while 2018’s total was 235.

In 2017, 98 deaths in the county were attributed to heroin or fentanyl. In 2018, the number was 153 and 2019 figures are expected to be even higher.

The third leading issue is marijuana use. The value of the CBD (cannabidiol) market is expected to surpass $20 billion globally by 2024 and Florida is taking steps to ensure it is well-positioned to take advantage. BDS Analytics has an impressive growth forecast for the CBD market, across all distribution channels, at an annual rate of 49 percent by 2024.

Since hemp was legalized on a federal level, several CBD sellers have sprung up around Tampa Bay, including Trulieve, Your CBD Store, The Smoke Bodega, Surterra Wellness, Wholistic Medical Group, CBD American Shaman, West Tampa Smoke Shop, Nothing But Hemp, Renew Spa and Wellness, and Bull’s Eye Wellness.

But opening up a new industry to commercialization comes with teething problems and Tampa Bay legislators may struggle to keep up. In Florida, Amendment 2 legalized CBD use for medical purposes in the state and the 2018 Farm Bill legalized hempbased CBD products federally. But Florida state legislation previously did not differentiate between marijuana, which contains THC, and hemp, which contains mostly CBD, meaning CBD products are simultaneously legal and illegal in Florida.

On July 1, 2019, however, a new law took effect ( ) www.capitalanalyticsassociates.com

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oundtable:

Care concerns Healthcare providers discuss the curent state of healthcare, from efforts to make healthcare more affordable to engaging the aging population and meeting the demands for specialized cancer care.

Ravi Chari, MD President HCA West Florida

How is HCA helping to keep healthcare affordable and accessible?

We know that in the Tampa Bay, we need to meet the consumer on their terms. In this area, we have around 4.8 million people, all of whom are potential customers, and when they start seeking healthcare and making choices, they become consumers. We want to make sure we connect and demonstrate our relevance to our potential customer base through our service offerings and outcomes. To that end, we are leveraging services such as telemedicine to achieve the convenience our patients desire and deserve. We are also working to make sure we have transparency and availability of information.

How is HCA West Florida working to push preventive healthcare?

We work with primary care physicians to ensure we can support them. Convenient access to the hospital test results involving their patients is one way we ensure that they have essential information to help physicians push preventative healthcare. We also use our data systems to help identify issues to intervene at an earlier stage.

How are you avoiding provider burnout?

We asked 600 of our caregivers to come up with a common purpose to explain why they are in healthcare: “We make a difference by providing compassionate care to those we are privileged to serve.” I want our over 25,000 people who work in our hospitals to know we make a difference by focusing on patient safety, welcoming all with hospitality, empathizing with our patients and families, and ensuring efficient, cost-effective care.

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HEALTHCARE ROUNDTABLE

Jeff Johnson State Director AARP

How have you seen the community become more engaged over the last year with the aging population?

Formally, we continue to work with organizations like the Foundation for a Healthy St. Petersburg on ways they can engage the aging population. Informally, we have also seen an uptick in interest in creating products and services that specifically serve older people. At the consumer electronics show in Las Vegas last year, there was a huge focus on developing products that help care for the aging population, which is remarkable. This is an opportunity that continues to grow.

One of the biggest barriers for business is also the biggest barrier for people living here and trying to get around, which is transport. Affordable housing is another issue business leaders will talk about. The third issue is social connection. There is a friendliness in the Tampa Bay market that is not seen everywhere, and this is certainly one of the things that attracts people to move to the area. But as a state, we leave a lot of human capital on the table by neglecting to engage those older populations that move to the area.

What makes the Tampa Bay region a unique market for AARP? When AARP was founded in 1958, our founder had a foothold in Downtown St Pete, in a hospitality house.

A lot of the flagship projects we have launched have been based out of that location, including mail-order pharmacy, lifelong learning and federal advocacy. This market went through a phase where people thought of it as “God’s Waiting Room,” but now it is very different for people across all ages.

Brad Prechtl

CEO Florida Cancer Specialists

How is the company meeting the demand for specialized cancer care in the region?

We have nearly 240 physicians throughout the state. At the end of 2018, we were at about 220 physicians, so we continue to add physicians to take into account the growth of Tampa Bay and throughout the state. A lot of that is driven by population growth and population aging, as cancer predominantly affects an older population. About 70% of our patients have either Medicare or Medicaid, and so we are constantly looking at how long it takes patients to see a physician.Typically, our patients can see a physician within 72 hours. That is a tremendous benefit to patients.

How is Florida Cancer Specialists working to provide more affordable healthcare to its patient base?

Many of us don’t know what we are going to end up paying for services until we have already received the care. All medical oncologists use the same FDA-approved drugs, whether the care is provided in a hospital care setting, an academic medical center or community based like Florida Cancer Specialists. What the government pays for those same services in a hospital outpatient setting or an academic medical center is higher than what we get paid.

If the patient has a copay or deductible to meet, they are going to pay more for the same services in a hospital outpatient setting or an academic medical center versus a community-based center like ours. A lot of our patients have fixed incomes, so a community setting is going to be better for the patient. They can get the same treatment while they are close to home and can sleep in their own beds. www.capitalanalyticsassociates.com

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( ) that allowed authorities to regulate CBD and hemp use. “Prior to these rules being adopted and taking effect, we didn’t have regulatory authority,” Cannabis Director at Florida’s Department of Agriculture Holly Bell told The News Service. “Now we do, and we have that up and going so that we can make sure consumers are protected.”

This has given license to the rise of more and more dispensaries in Tampa but also more and more legal challenges to the legislation. Some see the legalization as not going far enough, and want to petition for recreational marijuana to be legalized. The Supreme Court has to sign off on the proposal before it goes to voters but is reportedly “skeptical” of the ability to buy and grow marijuana without a medical purpose.

The vote may be delayed for the next few years, as pro-marijuana group Make It Legal revealed it wants to shift focus to gain ballot entry in 2022 instead.

Preventative healthcare Preventive healthcare is recognized widely as something that can help save medical funding but very few places have gotten the model right. Florida’s primary care physicians saw an average of 1,376 patients in 2018, a 0.218% decrease from the previous year. Patients seen by dentists were also down 3.23% to an average of 1,735 patients per year and for other primary care providers in Florida there was a dip of 10.5% to an average of 1,139 patients per year. This all suggests that preventive healthcare is declining across the state.

One of the initiatives rolled out to encourage preventive healthcare is mobile mammography trucks.

AdventHealth in December purchased the mobile mammography assets that previously belonged to Tampa Bay Mobile Mammography. The sale includes purchasing three specialty buses equipped with Hologic 3D mammography systems with technology capable of scanning 150 people per day.

And while hepatitis A cases were reported at their highest level in Hernando, Pinellas and Pasco counties in June, levels in Hillsborough County dropped drastically in the same month. In the first half of 2019, Hillsborough County reported 103 cases of hepatitis A, averaging about four new cases a week, but in the first three weeks of June, the county only added five new cases. Florida Department of Health epidemiologist Mike Wiese attributed the drop to a ramp up in outreach events where vaccinations and education on the spread of the disease were provided.

In January 2019, Hillsborough County health workers gave 229 adult vaccines, which increased exponentially in May to 762 vaccines.

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3D modeling is just one of the many innovations healthcare technology has been able to capitalize on.

Technology House Bill 23, passed on 1 July outlines the standards of practice for telehealth providers, registration of out-ofstate providers, venue requirements and exemptions, which solidifies the position and regulation of telehealth in Florida’s healthcare system. In a growing patient base such as Tampa with a shortage of qualified medical practitioners, telehealth has often been seen as the solution to make it more efficient to meet routine medical needs.

In perhaps the most glaring example of convenience medicine in Tampa, Tampa General Hospital in October partnered with Florida-based technology company OnMed to pilot the company’s telemedicine station, featuring thermal imaging, ultraviolet sanitization and facial recognition to operate as self-contained, unstaffed exam rooms. The unit enables TGH staff members to have video consults with healthcare providers and features a built-in automated prescription drug dispensary, increasing efficiency and cutting wait times.

HEALTHCARE OVERVIEW

But telemedicine is not the only way technology is disrupting medicine. Bridge Connector, based in West Palm Gardens, is a health tech company that creates a network to connect data systems quickly and cost efficiently. It attracted $5 million in funding from Tampa Bay Lightning owner Jeff Vinik. And Dr. Abilash Haridas, a surgeon at St. Joseph’s Children’s Hospital in Tampa is using virtual reality to take MRIs and CT scans to create a 3D model of the brain that is then used for surgery.

Research Medical knowledge is said to double every 73 days in Tampa, making it a well-established medical research hub. Innovation abounds in the region, across prestigious institutes such as the Morsani College of Medicine at USF, Nova Southeastern University’s Tampa Bay Regional Campus, the Medical Prep Institute of Tampa Bay and the Ultimate Medical Academy.

February 2020 marked the opening ceremony of the new USF Health Morsani College of Medicine and Heart Institute, a “preeminent research university” according to Florida’s Board of Governors. USF is only the third university in the state to receive state funding. The $3 billion development is located on Water Street and with the potential to accommodate 23,000 residents, workers and visitors, its economic impact is estimated at $73 million, meaning every dollar of federal grant money for research will pump $2.60 into the economy. Classes began in January,

Richard Atkin CEO – Greenway Health There are many technology trends. Something that we discuss internally is that recently technology is not advancing at the same speed that it does in other areas where it is already embedded in our life, like with smartphones, which are only 10 years old.

Within healthcare, there are still very inefficient processes in areas like patient care, payment processing and regulations. Technology has the opportunity to dramatically improve the way we all interact with the healthcare system and the way providers who work within healthcare can work to benefit the patient. The latest technology, like video and voice to text and various other things, have really exploded in other areas of our life, so how do we use those to the greatest effect. Our mission is not just providing technology, but enabling patients to get better and more access to care.

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Florida’s primary care doctors saw 1,376 patients on average in 2018.

heart institute researchers arrived in February and the Taneja College of Pharmacy is slated to begin work in the fall.

Cancer is another major illness being studied in Tampa. Tampa scientists Michael and Patricia Lawman developed a cancer vaccine using gene and cell therapy research. The ImmuneFx works by luring cancerous tumor cells out of hiding so they can be identified more easily by the body and can more easily be combated by means other than radiotherapy. Their company Morphogenesis carried out extensive lab work to develop the vaccine. The results showed a 77% reduction in tumors, attracting $27 million in investor funding for research.

Morphogenesis is now closing in on another round of nearly $45 million. The research is vitally important but there is a problem. Many people still don’t have access, according to innovators like Erik Maltais, co-founder and CEO of IMMERTEC. “Five billion people on the planet don’t have access to safe and affordable surgery. This is going to lead to 17 million deaths annually, which is 20 times more of a problem than AIDS and tuberculosis combined. Sixty percent of Americans do not have access to trauma level 1 and 2 care. There is a situation happening in the world that involves centralized specializations. This means there are great centers of excellence like Johns Hopkins, Harvard and other excellent universities and healthcare systems, where they specialize in one dysfunction or disorder. These healthcare centers bring the best minds together, and they push 130 | Invest: Tampa Bay 2020 | HEALTHCARE

each other to solve a specific problem. However, the issue is that the actual people who suffer from these problems are not usually located in these areas where the healthcare centers are. Instead they are located throughout the country and the world.”

But it is not all rosy in Tampa’s medical research world. According to a study last summer by TrialScout, Tampa lags behind similar cities such as Columbus, Ohio, St Louis and Raleigh, North Carolina in clinical research. Moffitt Cancer Center produces most of Tampa’s clinical research, accounting for 27% in 2018, University of South Florida Health produced 12.8%, Florida Cancer Specialists and Research Institute produced 6.9%, BayCare Health Systems produced 6% and Tampa General Hospital produced 5.8%.

Looking ahead The Tampa Bay region is working hard to cement its position as a medical hub, not only in the United States but globally. Already, the area has attracted the attention of multinational companies and prestigious scientists and researchers and continues to innovate.

But despite its strength in medical research, Tampa continues to take a retroactive approach to healthcare, rather than preventive and this unnecessarily burdens healthcare systems. With a prolonged COVID-19 outbreak, the system will be streteched to its limits.

In early April, hospitals had stopped delivering some non-essetial services and were calling for more funds to fight the pandemic.

Education: Workforce preparation and getting more high-school students into higher education, or on a track that will deliver the skilled labor local companies require, remain key goals for the region’s education sector. The state budget itself tells the tale: the leading focus for Gov. Ron DeSantis in the budget he tabled targeted improvements in all areas of the sector.

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Rise up: Tampa Bay’s educational institutions have worked to improve in every area. More is still needed For businesses to grow, they need a workforce with the right skills suited to today’s demands. Increasingly, academia is taking a role alongside the private sector to tailor courses and programs to meet emerging needs and produce the kind of talent the business community requires. The partnerships include the provision of scholarships and efforts to re-engage adult learners.

With the COVID-19 pandemic, many institutions were also forced to push their programs online, an effect that could continue once the crisis passes.

On the funding side, Gov. Ron DeSantis promised 2020 would be the “year of the teacher.” In his 202021 budget proposal announced in November, he tabled a $91.4 billion state budget heavily focused on education. The Florida Board of Education subsequently adopted this budget as its own, calling it “bold.” But there remains a gap between those who finish high school and those who go on to higher education, with 46% of high-school students without a path to secondary learning. Here too, the private sector has a role to play.

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high school diploma is about on par with the Florida average of 13%. While the proportion of people with a high school degree is lower in Tampa at 43% compared to 49% in Florida as a whole, Tampa outpaces the state in eaners of higher degree, with 43% compared with the state’s 37%. Around 14% of Tampa residents have a Master’s degree or higher, compared with just 11% on average in Florida.

Although women are more likely to have a higher education, this trend reverses after the Master’s level, when males are 76% more likely to have a professional degree and 35% more likely to hold a doctorate. But the tide is changing with age. Data show that in the age category over 65, males are 61% more likely to hold a Bachelor’s degree, but for each generation that comes below, there is a higher chance of women attaining a Bachelor’s. For the group aged 25-34, women are 13% more likely to hold this level of degree than males, but this is still far short of the Florida-wide trend, where women are almost 30% more likely to have a Bachelor’s degree than men in this age group. Despite education levels, men earn on average $10,000 more than women across every age category. ( )

EDUCATION INTERVIEW

Student benefits Consolidation of USF is expected to provide students with greater flexibility when taking courses offered at other campuses

Steven Currall President University of South Florida What curriculum changes are you applying to maintain an edge in the face of a changing labor market?

Florida state law passed in 2018 requires us to consolidate all three of our campuses into a single, accredited university. One aspect of this consolidation is integrating what we call general education. It is the core curriculum for undergraduates. One of the great advantages of consolidation is that it will facilitate students taking advantage of courses that are offered at other campuses. A student in Saint Petersburg will now have greater access to courses offered in Tampa and vice versa. The same applies to Sarasota. We think this will strengthen our region as a whole. We are investing in information technology resources that enable students to capitalize on online resources to connect to the courses electronically across all three campuses.

How is USF preparing students to enter the growing workforce in the Tampa Bay region?

We tackle this issue through collaborations with our corporate partners. Mainly, the employers. We launched the Jabil Innovation Institute, which is a seven-figure commitment spearheaded by Jabil as an addition to the collaborative research we undertake with their engineers. There are also internship opportunities and input that Jabil will give us on curriculum requirements in terms of the qualifications they need from their present and future employees. It allows us to update our curriculums and maintain a solid spirit of improvement, staying fresh and current for our employers. The key to the future of USF and the region is the symbiotic relationship between the university and employers. Engagement with investors in Tampa Bay and other corporate partners, including the analytics that come from either nonprofit or forprofit consulting firms, also enables us to stay up-to-

date on labor market trends. We continually engage in conversations surrounding evolving labor market dynamics and how we can continue to adjust to them as they change in the Tampa Bay region.

What is your near-term outlook for higher education in the state of Florida?

The state of Florida has been quite generous to higher education in recent years. We are grateful for it but we are far from done. We still need to elevate our higher education sector to compete with other states, such as California, Texas, New York, Pennsylvania and many others. We have great universities but there is still much work to do to develop an even more mature higher education market to fuel economic growth in the state. www.capitalanalyticsassociates.com

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Rebecca White Chair of Entrepreneurship & Director of the Lowth Entrepreneurship Center – University of Tampa In any entrepreneurial ecosystem or any economic community, universities are critically important. Some of the most powerful entrepreneurial ecosystems exist because they are near great universities. We primarily bring talent to the region.

The University of Tampa and the other great universities we have in Tampa Bay play a really important role in bringing talented individuals to the community. We are not trying to launch companies, even if we have many students launching their companies, but we are not an incubator. We are designed around creating talent. We also provide research that can help drive the economy.

( ) In the case of graduate degrees, men earn almost double the $55,200 earned by women to rake in $95,900.

In terms of race, education in Tampa is on the same level as state-wide trends. The largest population group without a high school diploma is Hispanic males, followed by Hispanic females, black males and black females. White males are the most likely population segment in Tampa to have a high school diploma, followed by white females.

College graduates per race are also widely on par with statewide indicators. The largest segment, just under 70% of Asian males have a college degree in Tampa followed by 53.4% of Asian females, 50% of white males and 48% of white females. Again, the least likely to have a degree are the black and Hispanic communities. Just under 14% of black men in Tampa are college graduates, followed by 17% of black females, 20% of Hispanic males and just over a fifth of Hispanic females.

The areas of highest academic attainment are in the central part of Tampa, namely Habour Island, the Channel District, Parkland Estates and Golf View, and to the north in Arbor Greene. The lowest levels of achievement are seen in the outskirts, such as the East Side Commercial Area, Palmetto Beach, Northview Hills, Highland Pines, Grant Park, Florence and Drew Park.

Higher education According to Polarlist, 65 people from Tampa Bay area high schools graduated from Harvard University, Princeton University and the Massachusetts Institute of Technology from 2015 to 2017. But Tampa has 25 colleges, educating over 75,000 full and part-time students.

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According to Universities.com, the top university in Tampa is the University of South Florida’s main campus followed by the University of Tampa. Eckerd College and the University of South Florida at St Petersburg come in fourth and fifth, with Pasco-Hernando State College rounding out the Top 5. Hillsborough and Pinellas counties sent the most undergraduate students to USF with 10,838 and 4,418, respectively. A further 4,000 students come from outside the country and 4,000 from outside the state.

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EDUCATION OVERVIEW

degree-programs, is the No. 1 community college, followed by Galen College of Nursing Tampa Bay, Concorde Career Institute Tampa, Ultimate Medical Academy Clearwater and Central Florida Institute.

It is worth noting that both USF and Hillsborough Community College are public institutes.

But USF is the region’s only research university, and despite generating dozens of patents in 2019 and generating around $1 billion for the regional economy, the other institutes in the region are falling behind.

According to the Tampa Bay Partnership’s annual State of the Region regional competitiveness report, Tampa Bay is improving but it still has work to do in terms of innovation. The report ranks the region 13th in R&D expenditures, up one place on the year, 11th in University licensing technology, level on the year, 16th in patents, up one place and 19th in Small Business Innovation Research (SBIR)/Small Business Technology Transfer (STTR) awards per capita, also flat on the year.

USF is Tampa’s beacon of elite education. In 2018, the university became one of only three universities in the state to receive “pre-eminence,” which is a status awarded based on meeting metrics that include graduation rates, research expenditures, student retention rates and patents awarded. Preeminence then means the university is eligible for additional funding from the Board of Governors, and in 2018 this extra funding came in at about $6.15 million, enabling the university to open the Morsani College of Medicine.

In July 2020, the USF Tampa Bay Campus’ metrics will be evaluated in conjunction with those of the St Petersburg campus and the Sarasota-Manatee campus, meaning Tampa Bay’s campus could be dragged out of pre-eminence status, a prospect former USF President Judy Genshaft called “earth-shattering.”

Funding As of October, Florida’s total student loan debt was at $75.9 billion, according to realtor.com, equating to 2.2 million borrowers who owe an average of $34,544 each, making it more difficult for graduates to get on the property ladder. Graduates burdened with debt are hurting the economic growth of the country, and legislators are starting to sit up and take note.

In January, DeSantis announced $500 million in cash refunds for those who used the Florida Prepaid program to fund tuition fees since 2008. As a result of the average payout of $4,700, around 108,000 accounts will now be paid in full out of the total 224,000 accounts affected.

The remaining families will see decreases in monthly payments, the governor pledged, generating $1.3 billion in total savings for Florida families. The decision came after a yearly review by the board on whether to reduce prices based on current and future costs of tuition and projected return on investment.

And in an effort to tempt more high-school graduates into further education, Tampa’s public and private sector are attempting to increase additional funding options, including scholarships. In February, the Tampa Bay Buccaneers Foundation announced it would award four $5,000 scholarships to female high school football players, in the first initiative by an NFL team to provide scholarships that benefit females.

And in the same month the Florida Supervisors of Elections (FSE) announced it would be offering three $1,200 scholarships to those studying political science, public or business administration, or journalism/mass communication at a Florida university. The applicant must be registered to vote to be considered eligible.

But some funding scandals over the last year could weigh on this progress. Florida’s merit-based Bright Futures “Academic” scholarships cover full tuition and fees for students at state universities and colleges provided they achieve at least 1,290 on their SATs and “Medallion” scholarships fund 75% for those who obtain at least 1,170. But a move in April to increase minimum scores to 1,330 and 1,200, respectively was received with outcry at its potential to disproportionately affect students of color. In Pinellas County, 100 seniors would drop from the “Academic” to the “Medallion” level and about 70 12th graders would no longer qualify, based www.capitalanalyticsassociates.com

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Shane Smith Central Florida Director Jim Moran Institute for Global Entrepreneurship The younger demographic is being raised in a time where the big-box corporations are not as attractive as they once were. This demographic wants to have a bigger say in who they work for, they want to help mold the identity of a business and they are much more focused on work culture than previous generations. This generation entering the workforce is not afraid of learning from their failures, which is something I believe previous generations were apprehensive about. The identity of the business that this generation chooses to work in becomes a part of their identity and they take pride in this.

on SAT scores. In Hillsborough, 380 students would drop from “Academic” to “Medallion.”

Funds from the Florida Tax Credit Scholarship Program could also be in jeopardy for 100,000 students from low-income families, attending several schools in the Tampa Bay region. After the schools were accused of espousing anti-LGBT views, donors to the scholarship such as Fifth Third Bank and Wells Fargo withdrew support. But the voucher program is largely funded by taxpayer money. More than 2,700 students receive vouchers to attend these schools – 22 of which are located in the Tampa Bay area – with schools receiving more than $16.7 million.

It is not only students who need to be funded, but also institutions of learning. Late last year, Hernando County came up with an innovative way to add classroom funding through an increase in builder impact fees for schools. The premise is that commissioners will approve new housing developments in exchange for higher impact fees, an initiative that has been welcomed by builders, realtors and the county’s own Chamber of Commerce. The fee for a single-family home will increase from $2,133 to $3,176 and will apply from June 2020.

Workforce preparation In Hillsborough County in 2018, 56% of students enrolled in college for the following fall semester.

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Eight out of 10 firms have trouble finding skilled labor to address the labor shortage that exists in the region.

“Tampa Bay produces enough degrees, but the choice of majors is not well-aligned with the job market, and the graduates do not necessarily stay in the region after graduation,” the report concluded. “For instance, there are more entry-level openings in finance, information technology, and marketing than there are completions or degrees awarded. In addition, employers in the manufacturing and construction industries noted the lack of awareness of and interest in careers in these two economic drivers and therefore a lack of students in manufacturing and construction-related training programs, many of which are nondegree programs.

This was highlighted as one of the primary workforce challenges of these two industries.”

Tampa’s talent pipeline is leaky and there are not enough resources available for high-school graduates who want to go onto further education but simply cannot access it. There are pockets of underused talent combined with a mismatch between degrees and actual business requirements. And an estimated 330,000 adults in Tampa Bay have earned some credits

CONSTRUCTION EDUCATION OVERVIEW

but never completed their college degrees, according to a 2017 American Community Survey. But institutions are now beginning to look to the source and approach high-school students to ensure a continuous talent pipeline flowing into the industry.

South Florida-based nonprofit Council for Educational Change developed a career forum to bridge the gap between students and employers, recruiting companies to speak to students about the benefits of obtaining a job in their respective fields. Hillsborough enrolled in the program in 2018 and so far, participating companies include Busch Gardens, Mainsail Lodging and Development, and Tampa International Airport, all of which have high demand for job candidates. And it is not just tourism-related industries that are involved.

In 2019, the group organized a visit to Citigroup in east Tampa, one of the city’s largest employers.

Trades Last summer, DeSantis signed an education bill (HB 7071) to expand workforce training and apprenticeships, which would essentially focus on the demographic with a high school degree and provide them a vocational career pathway. Skilled tradespeople are becoming especially difficult to find in Tampa, especially as construction activity ramps up. A low unemployment rate means companies are fighting for the best talent, and construction projects in Florida have suffered.

Eight out of every 10 firms are having trouble finding enough skilled labor, according to a survey from the Associated General Contractors of America released in August. Many anticipate hiring challenges through 2020 in recruitment of pipelayers, sheet metal workers, carpenters, concrete workers, pipefitters and welders.

In Florida in particular, 82% of firms expect to hire additional hourly workers in the next year, compared to 76% nationally, and 60% had to increase bid prices to adjust for higher labor costs. And The American Welding Society predicts a nationwide shortage of more than 450,000 skilled welding professionals by 2022.

Despite these challenges, DeSantis wants Florida to go from No. 24 to No. 1 in the nation for its workforce and technical training programs by 2030 and state Education Commissioner Richard Corcoran has requested $36 million from the legislature for workforce apprenticeships and vocational programs in the state colleges.

Tampa is also coming up with some innovative solutions by going straight to the source: high-school students. The Build Tampa Bay trade show takes place annually to allow the private sector to connect with

Randy Avent President Florida Polytechnic University

How is Florida Polytechnic University the key to economic growth in Polk County?

Technical research universities have a tremendous influence on growing the economies in the areas that surround them, and that is what we plan to do for Polk County and the entire state of Florida. Economic growth begins by creating high-skilled, high-wage, high-tech jobs and you do that through excellence in education. Each of these jobs is accompanied by several mid-wage positions that support it, which ultimately leads to a stronger overall economy. Companies want to be located near universities known for producing graduates in high-demand fields with low supply.

They feed from this pipeline of high-technology talent that is ready to lead in industry and to create the next innovations that will disturb the status quo.

What is the university’s biggest challenge?

As a new university, there are always challenges. The day we opened the university we had a full student body and were doing $30 million dollars worth of business. The university is still a startup because we are only six years into this and most universities have been around for more than 50 years. It will take time for the dust to settle and one challenge will be to continue attracting students who can be successful in a curriculum like this. We want to retain high quality students in Florida by offering them a curriculum that is different from the institutions they’re looking at out of state. We are also an attractive option because only 11% of our students are graduating with debt and the average debt is only $7,000.

What is on the horizon for the university?

We will continue growing and developing our curriculum. We are very fortunate that we were able to hire the provost from Colorado School of Mines, which USA Today ranked as the No. 1 engineering school three years in a row. He has led an effort to rebuild and grow the curriculum, and that includes making sure that it meets national standards. www.capitalanalyticsassociates.com

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Robert Bishop Dean University of South Florida College of Engineering

How close is the Tampa Bay area to becoming an innovation hub?

The Tampa Bay area can become an innovation hub, of this I am sure. If we look around the country at areas that have become renowned for technology and innovation, the common denominator is a powerful College of Engineering. We are that for the Tampa Bay region. We are filling the talent pipeline. For example, our Department of Computer Science and Engineering has over 2,000 students and is still growing. There is no way to build a high-tech hub without having these well-trained assets easily accessible to companies.

What role does engineering play in the innovation ecosystem?

I find that many people associate STEM education with science and mathematics, and I have to continually remind them that the E in STEM is engineering. The innovation ecosystem we are building in this region cannot be built around science and mathematics alone.

We have to have engineering and we need to continue to push that message through the education system.

What key challenges is the college dealing with?

One of our biggest challenges is our high rate of student growth. If we had the space, resources and faculty, we could literally double the size of the College of Engineering. The demand for engineering is at an all-time high. We have to continue to grow the resources required to provide the students and the faculty with the facilities, the labs and the various student support mechanisms that they need for their education. This is a good problem.

What will change for the college this year?

This year on the academic side we are beginning the process of establishing an undergraduate program in environmental engineering. We already have a nationally recognized graduate program in environmental engineering, and we see an associated undergraduate program as a good future direction for the college.

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students over careers in the trades. The event attracts around 1,000 high-school students and ends in a Signing Day, where students can sign on with a company, which then puts them through training programs.

K-12 In his budget, K-12 education was one of Gov. DeSantis’ priorities, partly in response to a countrywide shortage of teachers due to low salary. One of the main proposals was his plan to set minimum teacher salaries at $47,500, an idea that would cost $603 million in 2020.

But as part of the plan to balance the books, DeSantis also is recommending $480.5 million in budget cuts, with $284.5 million from eliminating the “Best and Brightest” teacher-bonus program. But equally, the governor wants an additional $300 million for a new bonus program for teachers and principals.

Teachers have long complained about the Best and Brightest bonus scheme, arguing the objectives were unattainable – some requirements included SAT scores from when they were students – and that a bonus as such has no impact on financial security.

At the end of January, the Florida legislature repealed the Best and Brightest scheme and rejected DeSantis’ new bonus scheme, arguing instead that additional funding should go to teachers’ base salaries.

High schools in Tampa are now establishing programs to source new teachers within their own ranks, namely, high-school students themselves. Educators Rising is a national membership organization that connects young people exploring a teaching career path with peers and experts countrywide. Leto High School in Hillsborough County just signed up to the program in the hope it will help to plug the education gap. According to the Center for American Progress, enrollment in teacherpreparation programs dropped 30% from 2010 to 2018.

Although a great deal of thought goes into issues such as teacher staffing and salaries, more consideration is needed on issues such as school standards. In midJanuary, the Department of Education unveiled the details of the proposal for Florida’s new school standards, running 450-plus pages. But the deadline for consideration was set as Feb. 12, leaving less than three weeks for proposals and revision.

Teacher shortages very much contribute to reduced education quality, an issue Hillsborough County knows well. Foster and Oak Park Elementary have spent the last 18 months under the supervision of Phalen Leadership Academies after the state Department of Education ordered drastic steps to correct poor academic performance – three consecutive D grades.

In early 2019, the school district took steps to address

EDUCATION OVERVIEW

Larry Thompson President – Ringling College of Art and Design In December 2019, we opened the Sarasota Art Museum, which is a part of Ringling College. It is built on the site of a historic high school from 1926 located right in the middle of Sarasota. We took It over because the school system was trying to find a use for it and we were looking for space for a museum.

We were able to turn it into a contemporary art museum and a space for continuing studies and lifelong learning. This project has been a long time in the making, so we are quite pleased to have this as part of our campus. the issue, attracting more teachers with a bonus plan.

The effort to keep the schools under district control was to go before the Department of Education in February.

But there is good news for some elementary students in Pasco County as the School District announced plans to overhaul many campuses. A year after superintendent Kurt Browning’s proposal to close three schools was rejected, in December the board built upon this plan and announced its own idea to establish new magnet programs, build new schools and renovate others at a cost of $250,000. The plan would shut down Hudson Elementary, subject to board approval.

Looking ahead Gov. DeSantis’ education-led budget will go a long way toward creating accessible education for a greater percentage of the population. But as Tampa Bay’s economy takes off, more and more skilled labour is required to sustain this growth, and importing talent is never the best option given the calibre of Tampa’s educational institutes. The gap between high-school graduates who do not go on to study a higher degree must be addressed if Tampa is to meet its labour requirements in 2020 and beyond.

Nonetheless, in 2020, the education sector will continue to face a misalignment in the skills of graduates it is producing and the requirements of the private sector, without meaningful dialogues and partnerships.

“Healthcare, corporate offices and business services, tourism and hospitality, retail, and construction are expected to account for 88 percent of the 78,000 new jobs projected over the next five years,” according to the Tampa Bay Works committee. “When factoring in replacement needs that account for workers exiting the workforce or changing occupations, the region is expected to have more than 850,000 total job openings 140 | Invest: Tampa Bay 2020 | EDUCATION

Tampa Bay is expected to have 850,000 job openings over the next five years during that period. For the region to be able to meet the demand for workers over the next five years, it must maintain, and even increase, the growth of the regional labor force.”

Learning must be accessible to all to plug the talent gap, and some Tampa Bay institutes are going above and beyond to ensure all have access to the same opportunities. In August 2019, St. Petersburg College partnered with Religious Community Services Pinellas to establish an express center with a food pantry containing nutritious food for the college’s lower-income students. And the Pinellas County Book Bus was set up by the school district to drive through the community through the summer months and encourage children to continue reading outside of school hours.

The more immediate challenge, howver, is covering the disruption caused by the COVID-19 pandemic. As the severity of the crisis widened, many educational institutions began pushing their courses online to ensure students could still attend classes, even if virtually. One outcome of the virus could be that many of these schools keep this solution well after the crisis passes.

Tourism, Arts & Culture: Tampa Bay is sometimes described as the new Miami, and so far its tourism industry seems to be going from strength to strength, although the COVID-19 pandemic will likely put the brakes on for the early part of 2020. One of the major challenges the city will undoubtedly face is in maintaining its rate of tourism growth, while also ensuring residents don’t get priced out of the Tampa lifestyle.

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Where to?: Tourism in Tampa Bay has been on a record run, although the COVID-19 pandemic is putting a cloud over the sector The biggest industry in Florida’s economy is tourism.

In 2017, out-of-state visitor spending directly generated $44.3 billion in Florida Gross State Product (GSP), and indirect and induced impacts meant tourism contributed $85.9 billion to the state’s economy. The Tampa tourism industry hit a record year in 2019, bringing in $35.4 million alone in tourism tax from overnight hotel stays, up $1.5 million on the year. In January 2020, Hillsborough County recorded a record monthly figure in terms of revenues, hitting $3.38 million in Tourist Development Funds.

A record-breaking 126.1 million people visited Florida in 2018 and more than 30 million of them went to Tampa Bay. According to a survey carried out by Visit Tampa Bay, around 20% of locals work for businesses that rely on visitors for at least a significant portion of their revenue, equating to around 120,000 jobs.

But the industry was put to the test in early 2020 as the COVID-19 pandemic kept people at home, both domestically and internationally. Shelter in place orders, bans on large gatherings and events, and the cancellation of major sports will have a deep impact on revenues. For example, Tampa hosts professional baseball’s Tampa Bay Rays, football’s Tampa Bay 142 | Invest: Tampa Bay 2020 | TOURISM, ARTS & CULTURE

Buccaneers, and hockey’s Tampa Bay Lightning. As the pandemic spread across the nation the NHL, NFL and MLB all closed their doors, and potentially their seasons. A protracted fight against the disease would spell deep trouble for the industry.

By the numbers Florida’s privileged coastal location and agreeable climate makes it an ideal cruise state, home to five of the largest cruise ports in the country: Port of Miami, Port Everglades, Port Canaveral, Port Tampa Bay and Port of Jacksonville. More than 7.5 million passengers boarded a Florida-based cruise in 2018 and these five ports alone accounted for nearly 60% of all U.S. embarkations. Tampa registered the greatest percentage increase nationally in terms of embarkations from 2016 to 2018, at 47.7%.

The Tampa International Airport was one of the factors that kicked off the tourism growth of the region, and Tampa’s connectivity is one reason why the location sustains this growth. The airport now serves 23 major airlines, with a record-breaking 22,166,049 million passengers in fiscal 2019, a 5.5% increase over 2018. It has 421 daily flights to 86 nonstop destinations and 57 weekly departures to 10 international cities. ( )

TOURISM, ARTS & CULTURE INTERVIEW

High impact Stellar hotel revenue numbers and tourism tax benefits ensure local employment opportunities as Tampa Bay becomes a ‘must-visit’ destination

Santiago Corrada President & CEO Visit Tampa Bay

How has the region benefited from the record year it just had in regard to tourism numbers?

We had an incredible end to the 2018 calendar year. It was another record-setting year for hotel revenue, which is phenomenal given that we have had record-setting years every year since 2014. We ended 2018 at $673.5 million in hotel taxable revenue, which was almost 5% higher than the previous year at $644 million. This is important for us because anytime a county hits $600 million in taxable revenue, it is granted the designation of a high-impact tourism destination. We have been able to reach that designation for two years in a row, and this year was even more important because our county commission just approved a rise in the tourism tax from 5% to 6%, which is the highest that any county can collect. These tourists are paying taxes that impact our quality of life; for example, every single tourist pays that new transportation tax, the new education tax and they pay a sales tax. All these things are contributing to the region’s job market and we are able to afford our locals more employment opportunities.

How is Visit Tampa Bay attracting more people into the region?

This region is starting to become everybody’s must-visit destination, which is awesome. This openness with tourism leads to people wanting to relocate, which is what we are now promoting while marketing for economic development. Instead of Visit Tampa Bay, we are calling the campaign “Make it Tampa Bay.” The campaign is to encourage people to make it Tampa Bay for a new job, or a corporate relocation or even a home relocation. We are branching out and doing more than just tourism marketing. We are now moving from that first initial visit to hopefully making you a permanent neighbor of ours.

How can the region sustain and build upon the growth of tourism into Tampa Bay? The modest hotel growth we are seeing in this region will help. There are certain big-name, five-star brands we do not have in Hillsborough County, and as the business plan makes sense to add these properties then we will.

These new properties will yield different business groups and markets for the region. We have to continue to capitalize when we have an opportunity to expand our reach, refresh our brands and to always have something new to bring visitors back. That’s why new developments like the Tampa Riverwalk are so important, why food halls are so important and why Busch Gardens updating and adding its roller coasters is significant because it gives people a reason to want to come back to Tampa Bay. Sustainability in this industry has to do with still being aggressive and still going after it. www.capitalanalyticsassociates.com

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Tim Jarret General Manager/ Partner The Tampa Club/BNG Hospitality

What is The Tampa Club’s mission?

The Tampa Club is a private, city club. It sits on the 41st and 42nd floors of the Bank of America building in Downtown Tampa. The mission is to create an environment where members can engage connect and do business. This year, we celebrated our 37th anniversary. We believe in inclusion. We were one of the first clubs to allow minorities and women as members. The Club was founded on the purpose of inclusion, allowing women and minorities to be apart of the club.This year, we partnered with the Tampa Bay Diversity Chamber of Commerce to further our vision of inclusion.

Members join the club for different reasons. Networking is a big component because it allows members to connect with one another and share and grow resources. The club staff treat members as individuals. Members are called by their first name and the staff learns each individual’s likes and dislikes. Members can also take advantage of our private event space for special occasions like weddings, bar/bat mitzvahs, and other celebrations or business gatherings. The club is like a home for our members.

How has the event space evolved in Tampa?

In the last few years, many new event venues have opened in the Tampa market. The older buildings are being remodeled for event space purposes. The hotels in the area are growing their event spaces. There are many more choices than in previous years. They are great choices and very different capacities from one another.

What separates us is the stunning view of the Bay region and our reputation for a high-quality experience. Next year, we are going to invest in updating the members’ space throughout the club. We want to maximize the way members use the space. We want it to be conducive for work and play, we will continue to improve our ‘office away from the office’ concept. I think the Tampa Bay economy will remain robust. The area has a lot of smart, passionate people working to solve challenges like transportation as the area continues to grow. The future looks beautiful and bright for the Tampa Bay region.

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In just the first three months of 2019, Tampa’s Downtown hotels saw an 84.4% occupancy rate.

( ) Another factor is Port Tampa Bay, the largest port in the Southeast, serving both cruise lines and freight companies. Cruise giants such as Carnival and Royal Caribbean operate year-round and cruise regularly to Cuba from Port Tampa Bay. Hotel occupancy in Tampa was up in the period from January to March 2019, according to Visit Tampa Bay. Downtown hotels registered an 84.4% occupancy rate during those three months, an impressive 7.3% increase on the year. The county’s total taxable revenue from hotel stays came in at around $195.5 million – up more than $10 million in comparison to the same period in fiscal year 2018. A big part of a hotel’s attraction is its service offering, according to Jim Bartholomay, General Manager, Renaissance Tampa International Plaza Hotel. “I have worked all over the country and I have never worked in an environment like Tampa Bay where there is genuine hospitality bred into the local residents. The workforce available to us in this region is just phenomenal. Everywhere a person goes in Tampa Bay, they will experience wonderful service and high levels of hospitality. So, when we do have turnover at the hotel, we have the ability to be very selective as to who we bring on the team next. We spend an inordinate amount of time vetting potential employees and asking questions like are you hospitable? Do you like taking care of others? We can take talent from all walks of life that may not have any skills to work in a hotel and we can teach them these skills, but being genuinely hospitable is the only thing that we cannot teach. That is a trait that is either innate or not in a person.”

Even for those guests who chose not to stay in a hotel, online platforms such as Airbnb are still obligated to pay a County Tourist Development Tax at a rate of 5%

TOURISM, ARTS & CULTURE OVERVIEW

Joe Collier President –Mainsail Lodging & Development

From a development standpoint, the one thing that is going to kill and has killed some deals for a lot of people are rising construction costs. Contractors and subcontractors are throwing out pricing that is pretty much putting some deals to bed. We will start to see more deals hit the back burner until this is fixed and the market corrects itself. That being said, some of these high construction costs are balanced by the fact that interest rates have remained low. Due to this balance we are seeing some amount of development still happening, but we are definitely in the eighth or ninth inning in terms of new development in the region.

of the listing price of the property. In 2018, Hillsborough County made $1.1 million in these revenues from Airbnb, Pinellas County made $2.9 million and Polk and Sarasota counties each raked in $1.1 million. And although there has been a great deal of discussion about the impact of the sharing industry on the hotel sector, not everyone sees it as a negative factor: “Regarding the sharing economy, I don’t think it has affected my hotel,” said Randy Kuiken, general manager of the Hilton Garden Inn Tampa Airport Westshore. “I can honestly say that when Airbnb entered the market everyone was concerned about how it was going to be regulated. They follow different rules from those that apply to us. But as time has progressed, they have been getting smarter and are better understanding the concerns of the industry. I do believe some of the larger hotels and extended stay

hotels have lost some business because some customers prefer to rent a house or a condo and share the cost, but overall, I think it is just another segment. Some people like it, some others don’t.”

And taxes generated from hotel stays get pumped right back into promoting tourism in Tampa. Raymond James Stadium, for example, recently received approval to use $3 million of the dollars generated by these taxes to market the upcoming Super Bowl. And the tourism industry in Tampa is very much cyclical. Much of the revenues were generated in the first place by events such as The Warrior Games, the 67th Convention of The Lutheran Church-Missouri Synod and the educational group Advancement Via Individual Determination, according to Visit Tampa Bay president and CEO Santiago Corrada.

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Market voices: Destinations

Neil Callaghan Brand Manager Cigar City Brewing Company

Our Brewery is unique in that so much of what we do is really influenced by the culture, the cuisine and the history of Tampa Bay. We feel like our success has really been part and parcel of the story of Tampa Bay resonating with people outside of the Florida area. We are extremely fortunate because we do get a lot of tourism to this region for a number of reasons, whether to visit family or go to the beach. Tampa Bay has really molded what we are doing as a company, from the names of our beers to how we market ourselves. This speaks to the way that outsiders have responded to the culture of Tampa Bay as a whole.

Tampa is still our biggest market by a long shot, and we are still growing at a double-digit rate in the Tampa Bay area, which is exceptional.

Our calling is to provide equitable opportunities for all children and remove the barriers that could potentially put them at a disadvantage in life. We look for ways to help families with low resources, including free admission and sponsored admission. The museum attracts lots of foster and military families and we want all families to feel represented and welcomed. We strive to provide accessible and inclusive programs, events, and exhibits to serve the diverse needs of our guests.

Sarah Cole President & CEO Glazer Children’s Museum

Cheryl Flood Executive Director Florida State Fair

One of the greatest misconceptions that we feel people have in regards to the Florida State Fair is, due to our name, that we are a state funded entity.

However, the Florida State Fair is a privately funded organization that depends solely on the community, those that participate in the annual fair festivities and people who attend the year round events held on the fairgrounds. As such, like other organizations, we strive to create an excellent experience and offer a product that is second to none for our customers and guests.

My vision for the institution is not simply to be a venue. We want to be the premier science education reference center in the region. While a lot of our focus is on our venue, we are truly centered on what we are delivering to the community. This means we need to continue to have our science education outreach programs in the local schools and other organizations that are geared toward our youth. That is where we believe MOSI is really able to make a difference and further STEM and STEAM education for the next generation.

Julian Mackenzie President & CEO Museum of Science & Industry (MOSI)

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TOURISM, ARTS & CULTURE OVERVIEW

Profile Canada, England and Germany are the Top 3 international markets for Tampa Bay, according to Visit Tampa Bay. But most visitors – around 14 million in 2018 – come to Tampa for day trips, a 40.6% increase since 2009. Around 8.9 million people pay overnight visits and just over half a million international visitors came to Tampa in 2018. Of all visitor profiles, overnight visitors spent by far the most at $2.3 billion, compared with $1.1 billion spent by day trippers and $693 million by international guests.

Of domestic visitors, the majority, 51%, are marketable leisure trips and 39% visit Tampa to see friends or relatives. A smaller proportion – 10%, or 2.3 million visitors – come to Tampa for business.

Meetings, incentives, conferences and exhibitions (MICE) is an industry expected to generate almost $1.5 billion by 2025, and Tampa offers a range of venues to take advantage of this potential. In 2019, Tampa was ranked 31 out of 50 in Cvent’s list of top U.S. meeting destinations, with 123 meeting hotels and more than 19,500 sleeping rooms.

The Tampa Convention Center offers a 200,000-squarefoot exhibit hall, a 36,000-square-foot ballroom, 36 additional meeting rooms, freight space and a network of 3,000 rooms at hotels within walking distance. For those looking for a smaller venue, the city offers museums, the Tampa Bay History Center, the Aquarium and a variety of restaurants and attractions for hire.

The Convention Center is undergoing a $30 million Capital Improvement Plan. On completion, the project will have new features, such as waterfront meeting spaces, upgraded facilities and new local restaurants, including Harpoon Harry’s, Big Ray’s Fish Camp,

and Tampa’s second Datz Restaurant. There will be 18 waterfront meeting rooms across a space of 16,000 square feet with a terrace and outdoor space.

But another type of tourist is more interested in the unique climate and backdrop offered by the state of Florida and Tampa Bay: the ecotourist. Florida contains a rich ecosystem but must remain acutely aware of mitigating its vulnerability to climate change.

This was one reason why, in April 2019, Gov. Ron DeSantis rolled out the Eco-Friendly Travel Hub on the Visit Florida website, which provides information on everything from which flights use the least fuel to which destinations are the most walkable.

Hotel performance Hotel occupancy rates have been skyrocketing in Tampa and, after nine consecutive months of recordbreaking bed tax and hotel revenue collections up to July 2019, Visit Tampa Bay’s Corrada expected the rest of the year to be a record setter when figures are released. There are more than 1,500 new hotel rooms under construction and 1,000 more undergoing renovations, although the emergence of the COVID-19 pandemic could put a near-term damper on the sector.

World-class hotel developers have their eyes on Tampa, and this is clear from the calibre of the new projects on the horizon. Among Yahoo’s ranking of Best New Hotels Around the World to Book in 2020 was the 123-room Karol Hotel located in Feather Sound, St. Petersburg. Opening in February 2020, room rates start from $349 per night. The Godfrey Hotel & Cabanas Tampa is a 276-room development in the West Shore district with private balconies and a pier allowing access to the bay. ( )

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TOURISM, ARTS & CULTURE INTERVIEW

Cool science The Florida Aquarium’s role in Tampa Bay includes economic impact and an educational role that focuses on STEM

Roger Germann President & CEO – The Florida Aquarium What is the key to the aquarium’s growth In 2019, we had 842,000 people come through our doors, and it was one of of our largest years ever. We are up 5% year-over-year in growth as far as attendance goes and that is an economic boost that has positive effects on our community. The key to our sustained growth has been twofold. The first is that we opened up some new exhibits, which I think is critical. In our industry, the attraction and entertainment industry, we are competing for disposable income dollars so we want to make sure that we are always fresh, relevant and innovative. Our two newest exhibits Heart of the sea and Moon Bay, help us in this regard. The second key is that people are very much in tune with our connectivity to saving wildlife. Unfortunately, there has become more of a nature disconnect as more people are living in urban settings and not necessarily getting out in nature and appreciating it. We are combating this with the conservation work we are doing, and people are starting to recognize that their dollars spent at places like this are going toward saving the environment.

How does The Florida Aquarium impact the region?

The Florida Aquarium is a nonprofit organization that will celebrate its 25th anniversary through 2021. We are a conservation-based attraction that, I believe, is one of the crown jewels in the city of Tampa and also for the Tampa Bay region. Our mission is to educate, entertain and conserve our natural world. Our mission is to save and protect wildlife and wild places through conservation, education, entertainment, and advocacy. We play a very important economic role here in the Tampa Bay region and the whole of Florida.

We provide a base for economics, we are an economic driver, we are an education leader, we are striving to save wildlife on the blue planet and we like to have fun.

At the end of the day, I believe the best way to describe us is that we are like a cool science teacher.

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How is the aquarium involved in education?

When I look at our universities and the programs they are working on, I believe we are going to start seeing more innovation and marine industry professionals being born out of the Bay. We will see more marine science and marine innovation happening here because people feel there is opportunity in this sector. Our learning programs at the aquarium are not just textbook learning; instead, we are trying to focus on STEM education and preparing a lot of the young people to go into STEM careers. We are working to have these students go to schools like the University of South Florida and the University of Tampa, so ultimately they can create a workforce that comes right back into this region to work. This is critical for us to continue the job growth in our marine industry.

TOURISM, ARTS & CULTURE OVERVIEW

( ) Not only are high-class boutique hotels setting up operations in Tampa, but the region is also drawing big names, such as Marriott, Westin and Hilton. The CURRENT Hotel, a 180-room hotel that is part of the Marriott’s Autograph Collection, has a beach and waterfront access for paddleboarding and other activities.

Hotel Alba is part of the Hilton’s Tapestry Collection, and the Westin Tampa Waterside recently underwent a $20 million renovation to include the Blue Harbor restaurant.

“Having all this new supply of rooms in the market is providing positive momentum and growth to the Tampa Bay Region and certainly makes entities like Visit Tampa Bay and the Tampa Bay Sports Commission’s jobs a little easier. Being able to offer this type of innovative product that is coming online really speaks to the evolution of the Tampa Bay hospitality market. We have been an undervalued market for quite a while, but with all the free press that Tampa Bay is receiving thanks to massive development’s like Water Street Tampa, it is driving more people into the region, which increases the demand for more hotels. All of which is ultimately great for the economy of the entire region,” said Stan Lifsey, co-owner of the CURRENT Hotel, to Invest:.

And as new hotels spring up, existing owners are improving the quality of their hotel offerings with multimillion-dollar renovations. Most notably, the Tampa Marriott Water Street completed a $50 million overhaul, the Sheraton Tampa Riverwalk invested $7 million in an upgrade, and the Seminole Hard Rock unveiled its eye-watering $700 million renovation, which adds 562 rooms, three pools and a 26,000-squarefoot salon, among other features.

One recurring challenge for all hotels is staff turnover and talent acquisition. “Employee turnover in this

industry is an ongoing challenge that does not have a clear-cut resolution, especially in Tampa where new hotels and restaurants are opening on a weekly basis,” Epicurean Hotel General Manager Kevin Scott, told Invest:. “Our key to navigating this issue is to ensure that we create a safe environment where employees are encouraged to speak their minds, give feedback and relay their input without the threat of it affecting their jobs. We work to empower our leaders to lead by example and foster great relationships between their departments. We are also in a sweet spot because we are a midsized hotel with a staff that consists of around 150 people, which means that if one person suddenly calls off or quits, it is not the end of the world.”

Cruises and marine tourism Due to its privileged location in the Caribbean, Florida is the most important U.S. state for the cruise industry, accounting for almost 60% of all boardings. In 2018, Port Tampa Bay was the sixth-biggest cruise port in the United States and the cruise industry contributed $8.9 billion to Florida’s economy in 2018. For the 2019 fiscal year, Port Tampa Bay welcomed a milestone 1,149,289 passengers, up from 1,043,329 in the same period of 2018. During that year, five ships from Carnival Cruise Line, Royal Caribbean International and Norwegian Cruise Line used Tampa as a home port.

Business Research & Economic Advisors estimates that a 3,000-passenger ship generates $334,000 in passenger and crew onshore spending per call in a home port city. Direct expenditures from the cruise industry in Florida generates a total economic impact of 154,646 jobs and $7.69 billion in wages and salaries, according to Cruise Lines International Association.

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TOURISM, ARTS & CULTURE OVERVIEW

Shaun Kwiatkowski General Manager – The Godfrey Hotel and Cabanas Tampa

Being an independent brand can create benefits, but there are also challenges to that. As the business and the industry have evolved, demand has changed and today many people want something different from the corporate type of hotel. Not to take anything away from those brands, but people do want to have the unique and fun experience that an independent brand can provide, similar to our food and beverage experience in WTR Pool & Grill.

That is exactly who we are. If we look at the market as a whole, we are starting to see some of those big-name brands evolve into a more independent style. We are seeing those independent, millennialfocused brands growing in popularity, especially in this area.

But for Tampa’s cruise industry to be sustainable, authorities are well aware of climate-related issues that need to be addressed. In November, red tide was found in the waters off Manatee County and respiratory irritation was reported in Sarasota. Red tide impacts economic activity including retail, fishing, hotels and equipment rental and in 2018, Florida businesses reported nearly $150 million in losses as a result of the organism.

As the climate warms, St. Petersburg authorities are taking steps to protect low-lying areas by rezoning and designating Coastal High Hazard Areas. The problem is that, with an increasing population, the space taken up by these designated areas conflicts with population density and exacerbates the housing shortage in Tampa. City Council members are examining options that include developing multifamily units on elevated structures in High Hazard Areas.

It is not just the authorities trying to ensure the ports remain sustainable. Industries that exist there are also rolling up their sleeves, with the Florida Aquarium recently announcing plans to install a new solarpowered rooftop and canopies, a project that will cost roughly $3 million and include 1,140 solar panels. It is expected to be completed by the fall of 2020 under the direction of Tampa-based BDG Architects. The Aquarium also partnered with Corona this summer in an initiative where the brewer pledged $1 for every case of Corona Extra cans sold in Hillsborough County over June and July. And smaller actions are also making a big impact, with Norwegian Cruise Lines pledging to end its use of plastic bottles across all lines.

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The Tampa Bay tourism industry logged a record year in 2019, bringing in $35.4 million in tourism taxes.

TOURISM, ARTS CONSTRUCTION & CULTURE OVERVIEW

Arts and culture Almost 90% of locals know that tourism enhances Hillsborough County’s cultural opportunities according to a survey by Visit Tampa Bay. In a survey last year, WalletHub ranked Tampa as the fifth-best city in the country for recreation. Despite a largely industrial economic boom driven by the cigar industry, Tampa flourished during World War II, when it served as a main base for the Army Air Corps and later Army Air Forces because of its privileged location on the country’s East Coast.

The air bases set up during this time became international airports – now Tampa International Airport and St. Pete–Clearwater International Airport – and brought in busloads of new residents and tourists in the mid-19th century. The city’s business owners were quick to adapt, and steadily captured the attention of more and more visitors with the establishment of attractions such as Busch Gardens and Lowry Park.

Brian Kornfeld President & CEO Synapse

How is Synapse working to help keep quality talent in Tampa Bay? Talent is one of the most important focus areas of Synapse, as talent attraction and retention in Florida are vital to our future. Synapse helps to tell the top stories of growth and success on a statewide and national level.

This helps to ensure people know about all of the great things happening in Tampa Bay. We enable connections between talent, startups, and companies through our Synapse Summit, Synapse Challenges, and the Synapse Connect digital platform.

How is Synapse Connect helping to connect entrepreneurs and bring their ideas to life?

When we first started Synapse, the idea was this platform that has become Synapse Connect. The thought of running a conference was not even on our radar, so it is interesting that our conference is what we are now best known for while Connect is still up and coming. The goal is that in the future Synapse Connect will be at the center of Florida’s innovation community. It will be the logical first step when somebody joins the innovation community, so they can find what they need or share what they have.

What is the key challenge facing the startup and entrepreneurial community in Tampa Bay? Part of the challenge with the startup community in Tampa Bay is trying to find our identity. We are pretty wide in terms of the different industries that we are trying to service, but we need to focus our efforts on being great in just a couple areas. This way we can be an inch wide and a mile deep. We have core leading industries such as cybersecurity, digital health, and financial tech.

We need to continue to play to our strengths. Startup companies also need to be educated on how to build for a customer’s needs, to solve a problem and learn how to create a product better than their competitors. After these companies have mastered this, then they can learn from there how to grow and scale. www.capitalanalyticsassociates.com

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For this reason, tourism very much played a role in the cultural development of the city.

In December, Hillsborough County registered its strongest performance in terms of tourism fund collection, up on the previous year by 27%. During the month of November, occupancy rates were up 4.5% in the Tampa North area around Busch Gardens, demonstrating that arts and culture are a big draw for visitors coming to the area. And business owners are not resting on their laurels. In February 2020, Busch Gardens filed plans with the Southwest Florida Water Management District for a new 1.83-acre project named Project Jethro in a drive to further boost revenues and attract more visitors.

The Florida Aquarium has also been drawing in guests, registering 841,424 guests last year, which is only surpassed by the aquarium’s opening year in 1995.

Like Busch Gardens, the administrators at the Florida Aquarium are aware of the need to innovate and adapt and it recently opened its 2,000-gallon Moon Bay exhibit, where guests can touch and learn about Moon Jellies, as well as inaugurating its $4 million sea turtle rehabilitation center in Apollo Beach. Tampa Bay residents appear to be supporting the efforts to bolster

Producers have been making wine in Florida since the early 1500s

TOURISM, ARTS & CULTURE OVERVIEW

students from elementary school to university.

Working with children and with young people is where we see the strength of the museum in the present and the future,” said Zora Carrier, Executive Director of the Florida Museum of Photographic Arts.

the arts in their community. Attendance at Tampa Museum of Art, for example, is expected to continue years of growth. “Since 2005, we had an uptick of about 187% growth in attendance. That is always driven by a very strong lineup of projects that people respond to with enthusiasm, such as the topics and directions in the art. Overall, our attendance is increasing every year.

Our goal moving forward is to double our attendance,” said Penny & Jeff Vinik Executive Director of the Tampa Museum of Art Michael Tomor.

The authorities are also supporting efforts to strengthen the arts and culture in the Tampa Bay area.

In December, St. Petersburg Mayor Rick Kriseman unveiled plans for the Deuces, pledging $7.5 million to redevelop the area in South St. Petersburg. The project is set to feature workforce-owned housing, new parks, commercial and retail spaces, and a new Dr. Carter G. Woodson African American Museum. The city is overhauling the 22nd Street South corridor, committing $1 million and 5 acres of land for the new African American museum. “I believe that every community is defined by their cultural background and how they treat and value the culture they grew up with. There is always space for there to be more emphasis on this idea.

I know, for example, that elementary schools are not so strong in offering arts and cultural education. We can help on that level. Our programming can accommodate

Events and festivals Much of July 2019’s tourism tax revenue boost was attributed to the Church of God in Christ conference that took place over the Fourth of July holiday in Downtown Tampa from July 2-6. That event alone doubled economic impact for the month compared with 2018 figures, raking in an estimated $3.9 million from the more than 10,000 visitors that descended on Hillsborough County.

In April 2020, the Raymond James Stadium will host WrestleMania 36, the must-attend event for wrestling fans globally. Over the past 12 years, WrestleMania has generated more than $1.2 billion in total economic impact for its host cities, according to organizer WWE. Wrestlemania 35 alone, held in New Jersey, brought in $164 million in economic impact to the New York and New Jersey areas, with a further $27.1 million in state, federal and local taxes generated.

There are thousands of events in Tampa taking place every day and targeted at all demographics, which is one reason why Tampa has managed to attract such a huge influx of tourists. This February, the Florida State Fairgrounds in Tampa will host the annual Florida State Fair, an event that provides fairground rides, food trucks, exhibitions and other events and competitions.

In fall, the conference center will host Tampa Bay Comic Con, an event that draws 50,000 attendees with tickets starting at $30. And Busch Gardens host several events annually, including Howl-O-Scream to celebrate Halloween, the Food and Wine Festival and the Summer Nights celebration.

Gastronomic tourism Along with its many other features, Tampa is quickly turning itself into a foodie haven. An influx of new residents from varying backgrounds means that Tampa is home to great best restaurants, whatever the taste. According to Yelpers, King of the Coop on North Florida Avenue is a fried chicken shop that feels like it has been taken straight out of Nashville and Yah Mon on West Platt Street makes visitors feel like they’re eating lunch on a Caribbean beach.

Armature Works is a mixed-restaurant venue with a variety of food stands including sushi, ramen and Cuban food, but it also includes another of Tampa’s staples: beer. According to a study by ( ) www.capitalanalyticsassociates.com

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oundtable:

Tampa Bay Sports Sports plays an integral role in any community and the Tampa Bay area is rich in professional teams that not only provide entertainment but also an opportunity to build relationships.

Josh Bullock

President Tampa Bay Vipers

What brought the Tampa Bay Vipers to Tampa Bay and what are your expectations for the team?

The process of bringing this team to Tampa Bay has been exciting, intense and rewarding. Thankfully, we have great leadership, both in the region and throughout the league, starting with the chairman of the XFL who gave us the time and resources to build this league the right way. We anticipate playing a fast, fun style of professional football at Raymond James Stadium for Tampa Bay fans.

I believe Tampa Bay is perfectly suited for this XFL team because of the great sports fans we have throughout our community. There are many entertainment options available and our community will continue to gravitate to products that are enjoyable, engaging and offered at an affordable price. That is exactly what the XFL is going to provide.

What impact does sports have on the region?

Sports can have a major impact in a lot of ways. Not only does a sporting event provide entertainment value for families, but it gives them an opportunity to relationship build and spend time together. Economically, we are proud of the jobs that the XFL has created, not only in the professional football space with our players and coaches, but also with the support staffs.

We are really excited about the impact we will have on the local hospitality sector, where our team will house approximately 100 players and coaches for four months and accumulate approximately 4,000 room nights by the time our season is over. All of this plays a strong role in supporting the Tampa Bay region’s economy.

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TOURISM, ARTS & CULTURE ROUNDTABLE

Brian Ford

COO Tampa Bay Buccaneers

What new developments can fans expect at Raymond James Stadium?

Many of the enhancements stem from two new partnerships with companies that provide a great part of our game day experience. We teamed up with Legends Hospitality and Fanatics last season and those two partnerships received rave reviews in their debuts last season. Legends is a premium partner from a food and beverage standpoint and Fanatics is an industry leader in sports retail merchandising. They are working with us side-by-side to enhance the game day experience. We also enhanced our level of service with more training for our customer service staff. In six of the past eight years, we have attained a top ranking in the area of overall customer service in the NFL. How has Tampa Bay’s accelerated urban growth reflected on ticket sales?

Our programming is about trying to identify potential fans. We have one of the largest charter season ticket programs with folks that have been with us since 1976. We want to embrace those people and look at ways to continue to engage them outside of what happens on the football field. But we are just as focused on connecting with those fans that follow our team but have yet to experience a game at Raymond James Stadium. We feel very confident that once those fans get a taste for a Buccaneers home game, they will be hooked. 2020 is going to be a great year for our team and the city as it prepares to host Super Bowl LV. It’s a great time to be a football fan in Tampa Bay.

Matt Silverman President Tampa Bay Rays

How does sports play into the culture of the Tampa Bay region?

There are very few things that bring us together as a community and that can unite us across party divisions like sports can. The two playoff games we had at home this year filled Tropicana Field full of Rays fans. It is the type of environment that can only be created through sports. We were the talk of the town and I would like to believe we lifted the spirits of so many in our community.

How big of an economic driver is the Rays organization for the region?

We are a large employer in the area, one that helps attract other companies. When companies are thinking about where to locate, or how to recruit new employees, the fact that Major League Baseball is here, coupled with NFL and NHL franchises, is a great differentiator. Beyond that, we have a number of visiting-team fans who like to come root for their team and visit Tropicana Field, St. Petersburg and greater Tampa Bay. That tourism influx is a major driver for the area as it helps fill hotel rooms, restaurants and bars, to name a few. I would like to think that when visiting fans come here and experience a great weekend, it entices them to come more often, even outside of baseball season.

What are some of the organization’s long-term plans?

Our expectation is to be here for generations to come.

Our lease with Tropicana Field ends in 2027, and we have been actively looking at how to build a new facility here that will keep us in the region for the long term. www.capitalanalyticsassociates.com

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( ) The Beer Institute, the beer industry provided more than 16,000 direct and indirect jobs and generated $2.3 billion in total economic output in the Tampa-St. Petersburg-Clearwater metro area in 2018. The study found a rise in popularity of craft beer, with many shying away from larger international brands with a preference for some local breweries’ offerings.

Sports Sports are big business for any city, but for those that have the infrastructure to host the major annual sporting events, the benefits are far higher. The 55th Super Bowl is scheduled for Feb. 7, 2021 in Tampa. The economic impact of the game can be in the hundreds of millions. Added to that hotels (official hotel packages that include a game ticket start at $6,945 per person), travel, retail and eating out, the Super Bowl alone is sure to see the county’s income explode.

It is not only football that holds a special place in Tampanians’ hearts. After extensive negotiations, there was widespread disappointment across Hillsborough County when negotiations with the Tampa Bay Rays baseball team over where the team would be located after 2027 fell apart. Plans to relocate the Rays to a proposed $892 million stadium in Ybor City hit a wall in December 2018. Although Mayor Rick Kriseman does not rule out reopening talks, focus has now fallen on what will happen to the Tropicana Field property, which should shortly be opened to proposals.

But it is not all doom and gloom as ice hockey team The Tampa Bay Lightning signed a seven-year deal with PepsiCo that hives the conglomerate soft drink rights to the arena and naming rights for the secondlevel deck. One of the factors that reportedly tempted PepsiCo was the new $3 billion mixed-use urban district under construction just outside Amalie Arena.

Looking ahead Tampa is sometimes described as the new Miami, and so far its tourism industry seems to be going from strength to strength. But it may still serve the city well to observe the mistakes made by its neighboring Florida city. One of the major challenges the city will undoubtedly face is in maintaining the rate of growth of the tourism industry, while also ensuring residents don’t get priced out of Tampa life.

The developing COVID-19 crisis is another hurdle the industry will need to face in the early part of 2020. No doubt, revenue generators across all tourism streams will face hardship, from sports teams to hotels big and small. But most industry watchers expect that an 156 | Invest: Tampa Bay 2020 | TOURISM, ARTS & CULTURE

The Tampa Bay Vipers are the latest professional team in the region.

eventual return to normalcy for people will also mean a return of normalcy for the industry.

Overall, there is reason for optimism. “The economy is set to remain strong for the next year and all of us in the hospitality industry just need to learn how to play in the sandbox together to reap the benefits. That is going to be essential because we don’t want any one entity to begin offering lower rates and disrupt the ecosystem. If we are going to continue to be successful, we need to remind visitors that Tampa Bay’s products are better, not cheaper,” said David Rowland, general manager of The Westshore Grand.