Interview: Kenneth Welch

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.

How important is the availability of a¡ordable 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

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.

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.

( ) a successful future,” Chris Pitisci, CEO of Pitisci growth in 2019, bringing it to $2.5 million in revenue & Associates, told Invest:. for the year. Finally, St. Petersburg-based SavvyCard 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, over the past couple of years, describing his own experience including $5 million in July 2019 This region has raising funds. “There are many to fund the development of its new Radiance platform, which done a great job high-net-worth individuals here, but I don’t believe there uses AI to identify risk, facilitate the security clearance process, …setting up for are enough angel investor funds or later stage funds in and reduce existing backlogs. a successful Tampa Bay. I’m engaged with The investment comes from 18 different investors, and meets future. a couple of funds both on the investor side and talking with the full amount requested by Chris Pitisci them about my new startup Lumina according to the SEC Pitisci & Associates SageLegion, which manages 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

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.

Bill Cronin President & CEO – Pasco EDC

We want to make sure we have a good mix of both o©ce and industrial investments in the county since large industry has a di™erent multiplier because it attracts suppliers and others that the o©ce 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 o™er countywide programming, where you don’t necessarily have to be in that coworking space to take advantage of the curriculum that we o™er 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-squarefoot 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

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

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

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.”