FEBRUARY 19, 2016 | VOL. 5 ISSUE 8
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02.19.2016
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UP FRONT | 3
upstatebusinessjournal.com
Struggles with forward motion ASHLEY BONCIMINO | STAFF
aboncimino@communityjournals.com This was not what we signed up for. That was my thought as walls beaded up, soaking moisture from the 100-degree air surrounding 10 sweaty adults crammed in a 4-by-6-foot elevator. “HELP! We are at the court of appeals stuck in an elevator,” someone posted on Facebook. “This is not a joke!!!! Serious.” Ironically, more than half of our Leadership Greenville tour to the S.C. State Capitol was about one of the most pressing legislative issues in our state today: transportation. As we collectively shed 10 gallons of water over half an hour, I couldn’t help but think our predicament – we’d stalled our elevator with too much weight – was a painful parallel to what we face with South Carolina’s broken-down infrastructure. Area Development magazine ranked infrastructure access – specifically high-quality highways – as the No. 1 factor for corporate relocations and expansions. It’s not just about the inconvenience of bumpy roads and traffic – our system might be slowly emptying our wallets as a state. For South Carolina business leaders, citizens and economic developers, the frustration is real. There is
Ashley Boncimino, lower left, and other members of Leadership Greenville make the best of being trapped in a Statehouse elevator.
no end to the stream of reports about how the issue could stifle development, about increasing challenges for the supply chains that are the lifeblood of our manufacturing industry, about overwhelming budget shortfalls and whispers of crippling government inefficiencies that make infusions of cash ineffective. What surprised me, however, was that the legislators we spoke with seemed just as frustrated. They shook their heads while explaining the state of affairs, which options they’d tried, were trying or might
discuss. The process is meant to be slow, they say, to make sure it’s the right legislation. It might happen this year, they say. But probably not. To be fair, some have proposed options. Many counties – Greenville included – have tried to shore up transportation budgets with penny sales tax referendums. Some advocate for a higher gas tax, one to match our regional state peers. Others argue for a pay-per-use system, but government tracking, privacy and technology issues seem to make it a no-go for everyday citizens. But that’s little solace to the employee who can’t work because his job moved to Georgia. It’s of little solace to economic developers who can’t get in the door because companies need to reliably, safely and quickly get their product to market. And it’s of little solace to businesses on congested streets trapped behind gridlocked traffic. So here we are, trapped in an elevator, still trying but ultimately waiting for an answer to South Carolina’s transportation woes. I don’t at all mean that it’s hopeless. We might just be stuck, sweating in the hot box a little longer. Here’s hoping we can soon move onward and – with any luck – upward. Postscript: After half an hour held hostage between floors three and four – and multiple calls reminding maintenance that, yes, we were still stuck – the elevator released us, tumbling out clown-car style to the surprised employees below.
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4 | THE RUNDOWN |
TOP-OF-MIND AND IN THE MIX THIS WEEK
UBJ
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02.19.2016
VOLUME 5, ISSUE 8 Featured this issue: 313,000 SF logistics facility planned for Duncan Campaign boosts Greer-made products New VP at BMW named
5 7 9
MONEY SHOT: Lockheed Martin selected its Greenville operations facility at SCTAC as the preferred Final Assembly and Checkout (FACO) site to manufacture its T-50A aircraft offering in the U.S. Air Force’s Advanced Pilot Training (APT) competition. Read more on page 28. Photo provided by Lockheed Martin
WORTH REPEATING
VERBATIM
“We’re at the point that a lot of our roads are in a condition of disrepair that it becomes dangerous, quite frankly.”
On transportation planning
“It’s really a shame that our roads are in such poor condition, and I don’t know who to blame. I’ll just leave it to politicians.”
“The reality about transportation is that it’s future-oriented. If we’re planning for what we have, we’re behind the curve.”
“I don’t find a lot of validity to the idea that if we let it get so bad, people are going to stop coming here. … If that were the case, Atlanta would have shut down years ago.”
…Page 20
U.S. Secretary of Transportation Anthony Foxx
CORRECTION: The profile of Joy Bailey in the Feb. 12 UBJ, “No limits,” incorrectly stated that Bailey was the first female president of the Greater Greenville Association of Realtors. In fact, Jean Stafford Sharpe became the first female president of the GGAR in 1981. Bailey was the first female Chairman of the Year for GGAR.
02.19.2016
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upstatebusinessjournal.com
Sunland Logistics expands with 313,000 SF Duncan facility ASHLEY BONCIMINO | STAFF
aboncimino@communityjournals.com Third-party logistics supplier Sunland Logistics Solutions has expanded with a 313,000-square-foot distribution warehouse in Duncan, adding eight employees to accommodate an existing pharmaceutical customer. The new facility follows two national expansions for the Upstate company, a warehouse in Ohio for an existing automotive client and another in Virginia for a chemical company out of Charleston, said Sunland Logistics CEO Arch Thomason. “For us, really it’s an expansion for current client and to support their growing needs,” Thomason told Upstate Business Journal. “It’s a good expansion into northern Greenville … and it’s one of the larger temperature-controlled spaces in the Upstate.” Bustling manufacturing and distribution activity in the Upstate has boosted business for Sunland, said Thomason, as well as for all kinds of supply chain and logistics firms. Sunland grew 46 percent last year, he said, and currently operates more than 2.5 million square feet and employs more than 200 people across the Southeast and the Midwest. “The market has tightened up, and luckily we’ve seen some new spec
| LOGISTICS | 5
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buildings coming in,” he said. “There’s really not a lot of capacity in the Upstate for temperature-controlled space.” Thomason Headquartered in the Upstate since 1982, Sunland Logistics works with customers in the automotive, retail, e-commerce, chemical and paper industries for warehousing and value-added services. The company changed its name from Sunland Distribution Inc. to Sunland Logistics Services Inc. in 2013, just after purchasing a 722,000-square-foot facility in Simpsonville. The facility was approved as a foreign trade zone site in 2014, which allows the company to bypass some or all customs duties and certain excise taxes. Thomason said only half of the Duncan facility is currently in use, but says Sunland’s pharmaceutical client has the option to expand into the space as needed.
Downtown Greenville grocer Cianciola’s closing
UPDATE
INFORMATION YOU WANT TO KNOW
Cianciola’s, a New York-style grocer and deli in downtown Greenville, will be closing by the end of February. The store and deli opened in early 2015 but “just didn’t have the volume of business needed” to justify keeping the doors open, said Joe Varieur, who owned the business along with business partner Wayne Weldon. “Unfortunately the location was just outside of the Main Street foot traffic,” he said. “We had great feedback from the customers we had. Parking was the only real complaint. Unfortunately, location, location, location.”
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6 | MANUFACTURING |
UBJ
INFORMATION YOU WANT TO KNOW
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02.19.2016
Bosch Rexroth to invest $5M in Fountain Inn facility ASHLEY BONCIMINO | STAFF
aboncimino@communityjournals.com Bosch Rexroth plans to invest $5 million in its Fountain Inn campus to support new product development, according to a news release from the Greenville Area Development Corp. Located in Southchase Industrial Park, the company’s existing operations manufacture several types of hydraulic pumps and motors used in construction, agriculture, mining, material handling, and oil and gas exploration. The expansion will allow for rapid prototyping with an off-highway equipment testing area to test products on customer equipment. “Greenville County has been an excellent partner for us as we’ve grown to meet the sophisticated needs of our customers in the Americas,” said Mike McCormick, vice president and technical plant manager of Bosch Rexroth. “We’re proud to be here.” Bosch Rexroth opened its first South Carolina manufacturing plant in 1989,
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and its third in 2011, according to Greenville County Council Chairman Dr. Bob Taylor. The county introduced a resolution in November 2015 to extend the company’s existing fee-in-lieu-of-tax agreement from December 2011 under
codename Project Titan. The original 2011 ordinance required an investment of $80 million in Greenville. “With the support of County Council, the GADC aggressively pursues any and all opportunities to
support innovation initiatives of our existing industry,” said GADC Chairman Dick Wilkerson. “This type of development is key to the long-term sustainability of our manufacturing base and higher-paying jobs.”
2446 Laurens Road Greenville, SC 29607
02.19.2016
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upstatebusinessjournal.com
INFORMATION YOU WANT TO KNOW
| BUYING LOCAL | 7
GreerMade initiative to promote local products ASHLEY BONCIMINO | STAFF
aboncimino@communityjournals.com The Upstate now has a new “Buy Local” campaign with the launch of the GreerMade program by the Greater Greer Chamber of Commerce. Similar to “Made in USA” or “Certified SC Grown,” the GreerMade label aims to showcase locally built or crafted products, and already extends to BMWs cars, bowties and bourbon. “It’s an ingenious marketing strategy that the chamber came up with,” said James Carter, the entrepreneur who makes certified GreerMade custom bowties and owns upscale men’s consignment store Empire Ltd. Studios. “They recognize how much manufacturing happens in Greer. … It’s unique to be able to provide that.” An Ohio native, Carter moved to Fountain Inn in 1997 where he operated the bowtie e-commerce site, EmpireBowTies.com. He relocated to Greer, however, when he noticed activity in downtown Greer even on weeknights and evenings.
“I had never seen that in a small community like this with a small downtown, even a historic downtown. Most of those kinds of shops would have closed down at 5 or so,” he said. “That proved to me that the local business was thriving.” Greer retail sales grew 23 percent to breach the $1 billion mark over the last fiscal year, the fifth consecutive year of record sales, according to Greer Today. Citizens voted to allow Sunday retail alcohol sales in late 2014. To receive certification, products must be 60 percent made in Greer, said Greater Greer Chamber of Commerce President and CEO Mark Owens. The website lists eight certified products already, but many more are on the way – including an application for water from the Greer Commission of Public Works. Owens hopes to add hundreds, if not thousands more in the future. Even the website is made locally, from the professional photos and Web design to the logo itself, he said.
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“We have a history right here CITY OF GREER GROSS RETAIL SALES in Greer of making things… and that future is in jeopardy if our FY 2015 $1,034,016,761 students don’t continue that,” said Owens, who said certified comFY 2014 $843,576,165 panies will have opportunities to showcase products to future FY 2013 $742,090,943 employees through workshops, FY 2012 $684,430,596 trainings and in-school visits. In addition to Carter’s custom FY 2011 $604,288,690 bowties, certified GreerMade FY 2010 $452,268,000 products already include the BMW X Series, Fisher’s Orchard Source: GreerToday peaches, Mitsubishi Polyester Film Inc. film, Suber Mill Corn10,000 views on its Facebook page meal, Wild Ace Pizza & Pub pizza, the and more than 500 views of its BIN112 Southern Comfort Burger and YouTube video by Monday afternoon. The Strip Club 104’s Flying Pig The certification is open to non-chamBourbon. ber members, and he hopes to connect “We chose Greer over Spartanburg those companies to students enrolled and Greenville, and more than any in local schools, career centers and single thing, Greer made us feel at technical colleges. home,” said Jason Clark, owner of BIN112 and The Strip Club, who said Learn more at he’s limited to selling his Flying Pig greermade.com. Bourbon in his restaurant. “We do Check out have things that are very unique that UpstateBusinessJournal. we don’t have anywhere else.” com to see the GreerMade After going live late last week, YouTube video. Owens said GreerMade recorded
8 | INVESTMENTS |
UBJ
INFORMATION YOU WANT TO KNOW
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02.19.2016
SC recognized for per capita foreign direct investment
Stay in the know.
Upstate Business Journal
@UpstateBiz
TheUpstateBusinessJournal
employing more than 115,000 workers within our borders, it’s clear that the strategy is working.” The Palmetto State bested national semifinalists South Carolina won top honors for its Indiana, North Carolina and California, which each foreign direct investment efforts over the course of won in their regions, according to a custom ranking a year, attracting the highest number of foreign direct by the magazine. South Carolina’s two largest FDI investment projects and interstate investments per expansion projects came from Hong Kong-based capita in the Southeast region and nationally, acTechtronic Industries with its $85 million, 216-job cording to fDI Magazine. The state also attracted commitment to expand in Anderson, and Germathe highest number of FDI expansion projects per ny-based ZF Transmissions’ plans to invest $22.5 capita, with the two largest expansions coming from million and create 545 jobs in Gray Court. the Upstate. Rankings were based on data collected between The ranking did not include a foreign direct inSeptember 2013 and August 2015, while states were vestment dollar figure for South Carolina. The state divided into geographic regions. Locations scored a announced attracting $2.3 billion in foreign direct maximum of 10 points for each data point, and each investment linked with 2,600 jobs in 2013. point was weighted to give overall scores. South “Bringing jobs and investCarolina ranked highest among each of ment from across the world the regional winners, taking first place FDI RANKINGS into both our state and in both the Southeastern conference nation are critical compoand nationwide. South Carolina – 100 points nents of Team South CaroSouth Carolina also ranked first – lina’s economic development ahead of runners-up Tennessee and Indiana – 95.43 strategy,” said Secretary of Kentucky – for attracting jobs through Commerce Bobby Hitt. North Carolina – 79.17 foreign investment in the most recent “With approximately 1,200 annual IBM Plant Location Internainternational establishments California – 66.54 tional report, according to the state. currently operating and
ASHLEY BONCIMINO | STAFF
aboncimino@communityjournals.com
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02.19.2016
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upstatebusinessjournal.com
INFORMATION YOU WANT TO KNOW
Creperie coming to downtown Spartanburg SHERRY JACKSON | STAFF
sjackson@communityjournals.com The Crepe Factory, a creperie and coffee house, is percolating in the former Sandwich Factory building in downtown Spartanburg. Owners Denise Mehl and Elaine Hoffman decided to change the name of their new restaurant venture from Chez Madeline to The Crepe Factory after hearing many stories and fond memories from former Sandwich Factory patrons. “We wanted to honor that nostalgic feeling towards the business,” they said. “It’s a way of honoring the past and moving forward at the same time.” The two partners are hoping to open in early March in the space at 137 W. Main St. Mehl and Hoffman, who have been friends for 20 years, both loved spending time in Parisian creperies when visiting France and decided that Spartanburg needed a similar restaurant. This is the first restaurant venture for the two. Mehl was a teacher and librarian for over 20 years and Hoffman has worked in the fashion industry and medical fields.
sjackson@communityjournals.com Building upon the success of the Augusta Grill on Augusta Street, which opened in 1993, The Haywood Grill opened this week in the former Stax Grill location at 850 Woods Crossing Road, near Haywood Mall in Greenville. Co-owner Curtis Flint said he and his business partner, Buddy Clay, are “not trying to do anything different” with the new restaurant and the
BMW Manufacturing names Degen as new VP STAFF
The duo had been actively looking downtown for space and “we had lunch one day and peeked in the window and could envision what we wanted to do in the space,” said Mehl. The location, downtown on the square, near City Hall and parking, and the revitalization in the area were all positives, she said. The Crepe Factory will have a “French bistro feel” and incorporate a lot of reclaimed wood with some industrial accents. Local artwork will be on display. “We want it to be a comfortable and cozy meeting place. Informal and fun,” said Hoffman. The restaurant will offer both sweet and savory crepes, along with specialty coffees, salads, sandwiches, quiches and soups. They will be open for breakfast, lunch and dinner six days a week and offer beer and wine. They’ll also be open for special downtown events. For more information, visit thecrepefactoryspartanburg.com.
Augusta Grill owners branch out east to Haywood Road SHERRY JACKSON | STAFF
| RESTAURANTS / MANUFACTURING | 9
Haywood Grill menu will be similar to Augusta Grill’s with steak, fish and chicken dishes. The two chose to open the second location as they saw a lot of redevelopment in the area and are near many neighborhoods near Roper Mountain, Verdae and Parkins Mill, said Flint. The space has been completely remodeled and has an upscale feel with dark interior and wood. A bar area serves as a meeting and gathering space. “We want a very relaxed, casual atmosphere with a comfort food but fine dining experience,” said Flint. “We’re not just a restaurant and we’re not just a bar.” Haywood Grill will be open for dinner only Tuesday through Saturday. For more information, visit augustagrill.com.
BMW Manufacturing announced this week that Dr. Gerald Degen has been named the new vice president of logistics and production steering for the Degen Spartanburg plant. Degen succeeds Philip Heinrichsdorff, who has returned to Germany to direct material control/delivery assurance for BMW Group. Degen has been with BMW Group for 18 years, according to a release from BMW. He holds a Ph.D. in Mechanical Engineering from the Technical University of Munich. Degen began his career as a quality engineer in BMW Plant Munich (Germany) and then joined the launch team to start up BMW Plant Leipzig (Germany) as director of final assembly. In 2007, he was appointed vice
president of BMW Plant Shenyang (China). In 2011, Degen became vice president of value added production Systems, responsible for the Lean Manufacturing Program of BMW Group until the end of 2012. He then moved to Brazil in January 2013 as director of BMW Plant Araquari (South America). The South Carolina plant is in the midst of a $1 billion investment to increase the plant’s capacity by 50 percent by the end of 2016, according to the company. This investment and expansion will enable the plant to add a fifth vehicle model, the BMW X7. BMW’s Plant Spartanburg is the largest BMW Group plant worldwide, the company said.
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UBJ
REAL ESTATE DEALS AND DEVELOPMENTS ACROSS THE REGION
SHERRY JACKSON | STAFF
sjackson@communityjournals.com |
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02.19.2016
@SJackson_CJ
Old mill spins new apartment project The American Spinning Mill, part of
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Artist’s rendering of what American Spinning Mill will look like after renovation.
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Greenville’s textile heritage, has sold to a Virginia developer who plans to turn the former mill into loft-style apartments. The American Investor Immigration Funds company, ASGA LP, plans to transform the historic textile mill into 230 “market-rate” apartment units totaling 240,000 square feet. The planned development will cost an estimated $49.8 million and is located within the Poinsett District at 300 Hammett St., just two miles from downtown. The property consists of three separate buildings, which have high ceilings, original oak floors and exposed brick. It is considered “one of the most attractive redevelopment sites in the state,” according to CBRE. Nick Hollstegge, associate with CBRE, represented the seller, White Horse Properties of Greenville, which was mainly using the property for warehouse and storage needs. This is ASGA LP’s first foray into two new spaces – South Carolina and mill conversions – according to the company’s website. >>
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upstatebusinessjournal.com
REAL ESTATE DEALS AND DEVELOPMENTS ACROSS THE REGION
SHERRY JACKSON | STAFF
sjackson@communityjournals.com |
@SJackson_CJ
LISTED: CBRE to sell state surplus properties The South Carolina Department of Administration has selected CBRE as the exclusive agent for the sale of more than 45 underutilized and surplus properties across the state totaling approximately 690 acres. Several of the properties are located in the Upstate, including five buildings located at 1439 Laurens Road in Greenville. Other Upstate properties are scattered across Anderson, Spartanburg and Pickens. 104 S. Hudson Street
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Greenville, SC
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29601
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864.561.4031
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info@parkplaceonhudson.com
www.parkplaceonhudson.com
>> Of the $49.8 million, $7.5 million will come from EB-5 investors along with additional state and federal tax credits the company is applying for. EB-5 is a program created by Congress in 1990 as part of the United States Immigration Act. The program was created to stimulate the U.S. economy through job creation and capital investment by foreign investors. While it will take a lot of work to transform the property, it’s in a lot better shape than most mills, said Hollstegge. The 12.77-acre, 365,385-square-foot property had been listed for about two years. “It’s the missing link between downtown and Cherrydale,” he said. “This won’t be your standard cookie-cutter apartment complex. The historic nature of the property when redeveloped will offer something pretty unique.” Paul Ruby with ASGA LP said details on the redevelopment such as amenities and breakdown of units are still being worked out, but construction is planned to begin in August and is expected to take 18-20 months. “ASGA has done a number of historic projects in very exciting places across the country,” said Ruby. “We’re really excited about this one as it’s a very unique project. We’re looking forward to putting a structure in the community that everyone will appreciate.”
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CBRE’s Columbia-based commercial real estate brokers, Ben Brantley and Martin Moore, will lead the effort in collaboration with CBRE’s public sector experts, Michael McShea, Rolf Kemen and Lee Ann Korst. For a detailed listing of each property and property specific information, visit cbre.com/ scsurplusproperties.
SOME OF THE SURPLUS PROPERTIES FOR SALE
440 S. Church St., Spartanburg ±7,442 SF office building Located on ±2.10 acres Sales price: $600,000
1439 Laurens Road, Greenville Five buildings totaling ±16,628 SF of office space. ±10.556 acres Sales price: $1,300,000
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PHOTO CREDIT TO FORREST BRIGGS PHOTOGRAPHY
THE TRANSPORTATION ISSUE
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I-85/385 work could push businesses eastward BENJAMIN JEFFERS | STAFF
bjeffers@communityjournals.com How will the next three years of the I-85/I-385 construction affect Upstate development? During the construction, new development – especially among suppliers servicing BMW – could be driven eastward to avoid traffic problems, according to Brockton Hall, who works on the Colliers International industrial team. Hall said the area between Pelham Road and U.S. Route 29 is already the “sweet spot” for suppliers. The construction won’t cause businesses that are already locked into long-term leases or own their own facilities to move, he said, but it would have an impact on new supplies coming to the market. “If you’re targeting BMW, that’s going to be a worry for a lot of new manufacturing companies,” Hall said. But the interchange construction isn’t the only factor driving where future development will go in the Upstate. With the Volvo plant starting in Charleston, many businesses will want ease of access to I-26, though many will look to locate close to BMW, Hall said. He also mentioned that some tier one suppliers – companies that supply directly to original-equipment manufacturers like BMW – are expanding their operations to accommodate Volvo. Until Volvo gets large size and production values, suppliers will still mainly focus on the Upstate instead of locating downstate, he said. “I believe you will see many of the BMW suppliers expand their existing facilities in the Upstate versus building a new facility in Charleston until Volvo’s production volume increases to a point where it makes sense,” Hall said. Greenville Area Development Corporation (GADC) President and CEO Mark Farris has a different take on how the interchange construction
will affect development in Greenville. He said he doesn’t anticipate the construction to affect where businesses choose to locate. GADC works in the areas of manufacturing, distribution and office spaces. “Companies don’t make decisions based on short-term inconveniences,” Farris said. GADC usually works with companies for at least a year before they commit to locating in Greenville, and by that time, most of the construction will be over, he said. The bigger issue in recruiting companies to Greenville would have been if nothing had been done fix the interchange, Farris said. “We are constrained as far as manufacturers because of the [current] infrastructure.”
“Companies don’t make decisions based on short-term inconveniences.” Mark Farris, president and CEO, Greenville Area Development Corporation He said a recent area development survey showed that transportation ranked second under labor availability for top concerns businesses had when locating somewhere. SCDOT Secretary Christy Hall said the interchange currently handles 220,000 vehicles daily. But with the changes that SCDOT is making, she said, the interchange will have the capacity to handle 350,000 vehicles daily. The $231 million project will include adding a fourth northbound and southbound lane on I-85 between I-385 and Pelham Road. I-385 will widen from four lanes to six lanes from Butler Road to Roper Mountain Road. Crews will construct 11 new bridges. They will also enhance traffic signal coordination and improve three intersections on Woodruff Road.
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THE TRANSPORTATION ISSUE
Transit Oriented Development
Developed to move More cities in our region are building transit-oriented developments – is the Upstate next? SHERRY JACKSON | STAFF
sjackson@communityjournals.com
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02.19.2016
BENEFITS OF TOD 1. Reduced household driving and thus lowered regional congestion, air pollution and greenhouse gas emissions 2. Walkable communities that accommodate more healthy and active lifestyles 3. Increased transit ridership and fare revenue 4. Potential for added value created through increased and/or sustained property values where transit investments have occurred
5. Improved access to jobs and economic opportunity for low-income people and working families 6. Expanded mobility choices that reduce dependence on the automobile, reduce transportation costs and free up household income for other purposes Source: Center for Transit Oriented Development
SCALEYBARK, CHARLOTTE, N.C. This TOD is located adjacent to the Scaleybark Light Rail station near the SouthEnd and SouthPark in Charlotte. The 23-acre development includes a 315space park-and-ride lot and future plans include retail, restaurants, office, apartments and townhomes.
DOWNTOWN KENDALL, FLA. As more people relocate to urban centers and become less vehicle-dependent, cities need to step up shared public transportation options. Across the U.S., transit-oriented development (TOD) is the preferred option for many commuters. In planning communities where mass transportation is readily accessible, TODs are becoming the norm rather than the exception. Can this be accomplished in the Upstate? Absolutely. Greenville County is already starting to look at future multi-modal transportation options, said County Councilman Fred Payne. “Our goal is to create smart urban transportation corridors with smarter green villages development around mobility hubs,” he said. Payne prefers to use the term “GreenVillages” rather than “transit-oriented development,” as he believes the mental image is more attractive to prospective residents. “They’re green, mixed-use, walkable, livable and sustainable places,” he said. “They are connected with varied, automated transport options to nearby communities along networked corridors.” Here’s a look at a few successful projects across the region to get the creative juices flowing.
DEFINED Transit-oriented development (TOD): An approach to development that focuses land uses around a transit station or within a transit corridor. Typically, TOD is characterized by: • A mix of uses • Moderate to high density • Pedestrian orientation/connectivity • Transportation choices • Reduced parking • High-quality design Rule of thumb: TOD occurs within one-quarter mile, or a five to seven-minute walk, of a transit station. Source: The Sustainable Cities Institute
In 1999, city planners in Kendall, Fla., a suburb south of Miami, created a 350-acre master plan. The goal was to create a recognizable city center amidst a suburban, automobile-dominated community. The city lies at the convergence of several regional transit corridors (including two Metrorail stations) and the intersections of four heavily traveled arterial roadways that crisscross an intense mixture of retail, offices, hotels and residential neighborhoods.
TYSONS CORNER, VA. In order to reduce congestion and improve walkability and connectivity, the Fairfax County Virginia Planning Commission created an outline for the urbanization of Tysons Corner, a rapid transit station that opened in 2014 on the Silver Line of the Washington Metro. Within two months of the station opening, the metro line reported 30,000 combined trips were being taken to or from Silver Line stations on weekdays. According to Metro, “the new line is already performing at 60 percent of its projected ridership for the end of the first full year of service.”
ATLANTIC STATION, ATLANTA Maybe the best example of a TOD in the South, Atlantic Station has a mix of affordable, middle-income and upscale housing with office, restaurants, theaters and retailers. Public transportation is available via MARTA (Metro Atlanta Rapid Transit Authority) and a Free Ride Shuttle is available at Atlantic Station to the MARTA bus bay. An on-site concierge team can assist with public transportation options.
02.19.2016
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THE TRANSPORTATION ISSUE
upstatebusinessjournal.com
Imagining Upstate transitoriented development By SHELLEY ROBBINS Sustainable Communities Project Manager, Upstate Forever
Transit-oriented development (TOD) – typically defined as compact development with a mix of uses such as housing, stores, schools, and offices located within easy walking distance of transit – is an incredibly powerful tool that can combat sprawl and congestion while increasing access to employment; spurring additional development, revitalization and increased property tax revenue; and improving community health, facilitating aging in place, and even decreasing crime. That is a tall order! But research is backing up these claims as more communities place greater emphasis on the link between land use planning and transportation, recognizing that we must rethink transportation in terms of moving people – not cars. The Upstate is widely recognized as one of the most sprawling regions in the country – characterized by disconnected suburbs, minimal pedestrian infrastructure and separation of land uses. We need a car for everything, and those of us who don’t have a car run the risk of unemployment, limited access to health care and other services, and social isolation. The elderly, young and disabled are particularly disadvantaged, which ends up costing all of us. Add to that the fact that an increasing number of Americans simply prefer not to drive: A widely cited University of Michigan study released last month found that the percentage of people ages 20-24 who have a driver’s license has dropped from 91.8 percent in 1983 to 76.7 percent in 2014. These members of the millennial generation will choose to live in areas with strong transit and active
transportation networks. So if our region is to be both successful and competitive, we must encourage TOD and other walkable places and reliable transit service to support them. Working together TOD is achieved successfully when elected leaders, transportation planners, land use planners and developers work together to address the needs and potential of a community. Historically, these groups have made policies and investments in relative isolation, resulting in haphazard improvements. There are strong signals, however, that this paradigm is changing in Greenville County, where TOD guidelines are being advanced in the City of Greenville, the Piedmont Health Foundation is working to better integrate transit and land use planning, and citizens and community groups – including Upstate Forever – are advocating for new and smarter ways for people to get to the places they need to go. What could TOD look like in Greenville? Picture the downtown central business district – with its trolley routes, B-cycle stations, bike lanes, buffered sidewalks, businesses, restaurants and residences – replicated in strategic pockets across the county. This combination of elements allows people to move about conveniently and safely without needing cars. As a byproduct, they get exercise, make social connections, spend money locally and even deter crime by serving as “eyes on the street.” But TOD without high quality, frequent transit service cannot reach its fullest potential. So imagine a connected, fully integrated public transportation network servicing these TOD nodes. The network might include buses that run every 20 or 30 minutes on dedicated lanes, personal rapid transit in strategic locations, sidewalks and bike paths.
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What if? Between Greenville and Spartanburg, Wade Hampton Boulevard connects the communities of Taylors, Greer, Lyman, Duncan and Wellford. What if the citizens of these communities – none of which has a downtown more than a mile from Highway 29 – could hop on conveniently scheduled public transit along an improved corridor and arrive in downtown Greenville, Greer or Spartanburg in a matter of minutes? What if the residential communities along the Laurens Road corridor – including the Verdae development, where more than 10,000 residents will one day live – and the downtowns of Simpsonville, Mauldin and Fountain Inn were connected to downtown Greenville and CU-ICAR by similar high-quality transit service? What if the communities along these corridors developed parks, grocery stores and schools in close proximity to homes and connected by sidewalks and bike paths – making it possible for citizens of all ages and ability levels to reach those destinations easily and safely? Upstate Forever has been encouraging this type of development for years, and many of these communities are making great progress.
If our region is to be both successful and competitive, we must encourage TOD and other walkable places and reliable transit service to support them. While the benefits of TOD are significant, substantial challenges remain, such as the cost of retrofitting corridors and improving transit service. However, just as we describe interstate widening and other transportation projects as investments, these expenditures should also be viewed through the lens of investment: An investment in TOD, corridor retrofits coupled with better, more frequent transit service can reduce unemployment, road wear, health care costs and crime. Considering these avoided costs as well as the positive impacts to our quality of life and economy, the case for taking action is compelling. The alternative is to continue developing as we have been for the past 60 years – designing for cars, not people – effectively creating an auto-dependent community that will cost us far more in the long run.
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02.19.2016
The trouble with Greenlink To get workers in Greenville to their jobs, the transit system may need to update routes that have not changed since 2008 CINDY LANDRUM | STAFF
clandrum@communityjournals.com Greenville has changed a lot in the last decade. But bus routes for Greenlink have not. As residential hotbeds have shifted, new apartments are built, new retail centers go up and zoning and land use see change. But Greenlink’s fixed bus routes are largely the same as they were since at least 2008. While Greenlink added a Mauldin-Simpsonville route in 2012, a Greenville to Clemson route in 2013 and downtown trolley service in 2014, the transit provider does not serve BMW or Michelin – two of the Greenville area’s largest employers – nor the Greyhound Bus station, parts of busy Pelham and Woodruff roads, the airport, Greer, Travelers Rest, and Fountain Inn.
A study completed two months ago by Piedmont Health Foundation found lack of transportation to be a primary barrier to economic success for many in Greenville County, and that car ownership is not necessarily an indicator of mobility. Some older adults can no longer use their cars because of their health, while lower-income residents frequently can’t afford gas or car repairs, the study said. Among 3,527 survey respondents, 37 percent said Greenlink’s bus schedule does not meet their needs. Of those, more than 72 percent said Greenlink service is not provided where they need to go. “We don’t go to places people need to go and times they need to go there,” said Mark Rickards, Greenlink director. “We’re not trying to get people out of their cars. We’re trying to get people without cars to work, school and the store.” Grant Sparks, Greenlink’s manager of transit planning since April, said he hopes a comprehensive operational analysis of Greenlink’s transit services will be completed by the end of the year. Right now, Greenlink knows how many people ride each of its 11 fixed routes but does not know specifically where they get on or off, Sparks said. “To adapt routes to the changing area, we need data. If we are going to eliminate a route or change a route, we need the data to back up that decision. If someone
approaches us about a new route, we need to have data,” he said. The data gathered in the analysis will be used to update Greenlink’s master plan. The analysis will also take a look at the system’s fare structure. While ridership in 2015 increased from the year before, fare revenue dropped by 4 percent. The downtown trolleys are free and less than 5 percent of riders on the Clemson commuter route pay because those with Clemson University IDs ride free. >>
“We’re not trying to get people out of their cars. We’re trying to get people without cars to work, school and the store.”
1 2
ST F
Mark Rickards, Greenlink director
2015 TOP PRODUCERS
PETE BRETT, CCIM Circle of Distinction Bronze Level
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02.19.2016
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>> Greenlink wants to extend hours from 7:30 p.m. to 9:30 p.m., but the change is on hold until the analysis is completed. The transit provider also wants to add Sunday and holiday service. The Piedmont Health Foundation’s study found “infrastructure in Greenville County makes mobility without a car extremely difficult. Many suburban neighborhoods are sparsely developed and don’t have sidewalks, meaning it’s difficult for a fixed route bus to efficiently serve the area or for a rider to access the bus.” Expanding service even incrementally will require additional funding. “We’re spending every dollar
FRANCIS
THE TRANSPORTATION ISSUE
upstatebusinessjournal.com
3
we get,” Rickards said. “We’re going to need creative funding mechanisms such as our partnerships with Clemson, St. Francis and the Greenville Drive,” he said. Rickards said Greenlink will try again for a federal transportation TIGER grant, the winning of which would “transform the public transportation system.”
GVL DRIVE
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PUBLIC TRANSIT RIDERSHIP IN GREENVILLE OVER THE YEARS • 1941 – 4,770,300 riders After World War II, commerce was focused on downtown, residential neighborhoods were compact and cohesive, the interstate highway system was in its infancy and few owned private vehicles • 2009 – 660,000 riders • 2012 – 831,248 riders • 2015 – 1,072,261 riders Source: Greenlink
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THE TRANSPORTATION ISSUE
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02.19.2016
Greenville applies for $50M transportation grant BENJAMIN JEFFERS | STAFF
bjeffers@communityjournals.com CINDY LANDRUM | STAFF
clandrum@communityjournals.com A team representing the city and county of Greenville has applied for a $50 million grant to revolutionize transportation in the city. Greenville is one of 78 metropolitan areas – and the only one in South Carolina –applying for the U.S. Department of Transportation Smart City Challenge grant. Dr. Joachim Taiber, chief technology officer for the International Transportation Innovation Center (ITIC), coordinated writing Greenville’s grant application, which he said focused on pilot programs for Main Street in downtown Greenville and Woodruff Road, and automated transportation system (ATS) testing at the South Carolina Technology and Aviation Center (SCTAC). On Main Street, the pilot program would feature driverless taxis that would pick up passengers and possess the ability to be aware of obstacles in the road such as bicyclists and pedestrians, Taiber said. The system on Woodruff Road would include a new parking structure and shuttle service where shoppers could park and then be transported to stores and back. Taiber said the shuttle could operate on a rail system, or as an automated, driverless system that uses existing infrastructure. The grant writers left the option open, he said. The final major highlight would be ATS testing at SCTAC for systems such as podcars that could be implemented at Greenville-Spartanburg International Airport and Clemson University and connect parking lots to the terminal at the airport and buildings at the university, he said. USDOT wanted applicants to come up with transportation ideas that haven’t been tried before, Taiber said. “What the USDOT asked for was a vision and not for a benchmark.” All the vehicles used in the systems would be emission free, so Greenville would need an upgrade in its charging systems, Taiber said. Also, in order to implement all the ideas, Greenville would need to use the grant money to upgrade vehicle communications networks, he said. “The car industry is moving to more connected and innovative driving,” he said. USDOT will announce the five finalists for the grant in March at the South by Southwest (SXSW) conference in Austin, Texas. Taiber said the finalists will be given $100,000 to develop a final proposal. The $50 million winner will be announced in June.
TIGER GRANT The Smart City Challenge grant is different from the $12-$14 million Transportation Investment Generating Economic Recovery (TIGER) grant Greenville lost out on last year. That federal grant would have gone towards transforming the Greenlink bus system from a local to a regional system with 10 electric buses, express routes and extended service hours. Greenville once again has the opportunity to apply for another TIGER grant, and the application team is hopeful this round will be different. Greenlink director Mark Rickards said although Greenville’s grant application wasn’t funded, the system received good signals from federal officials who told them to do the application in incremental phases. “It would transform the system,” he said. Grant Sparks, manager of transit planning for the City of Greenville, said in a debriefing after the last round of TIGER grants that USDOT officials said Greenville’s application was good and “they just ran out of money.” He said federal officials suggested the city include phases in its TIGER VIII application. Local officials are adding private partners as well.
02.19.2016
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THE TRANSPORTATION ISSUE
upstatebusinessjournal.com
Getting students on the shuttle Greenville Tech exploring bus service between campuses CINDY LANDRUM | STAFF
clandrum@communityjournals.com During traditional morning and afternoon “rush hour” times in the morning and afternoon, it can sometimes be difficult to find a seat on the Greenlink commuter buses that run between CU-ICAR and the Clemson University campus. “There are times when it’s standing room only,” said Grant Sparks, manager of transit planning for Greenville. Last year, nearly 63,000 riders rode the Tiger Commute, which links CU-ICAR and the Clemson University campus, and Tiger Connector, a bus route serving CU-ICAR, Patewood, the University Center and Greenville ONE. Greenville Technical College is looking at a similar bus service between its four campuses. “We’re in the exploratory phase,” said Brett Gaffney, Greenville Tech Dean of Students. Gaffney said the school likely would try to partner with
Greenlink in a similar arrangement. “Eventually, we’d like to have that type of service.” Greenville Tech already has a small shuttle bus, and school officials are looking at providing bus service from the main Barton campus on Pleasantburg Drive to McAlister Square, a former mall about a mile away that houses the school’s admissions, testing, financial aid, advising and registration services, said Diane Thomas, advisor in the academic affairs office. “We looked at bus service years ago,” she said. But that was before the increased traffic at the Barton campus and before student housing on campus.
Main Campus
Having bus service to the satellite campuses – Northwest in Berea, Benson in Greer and Brashier in Simpsonville – would allow students to get to specialty classes and programs more easily, as well as give them additional offerings of core classes from which to choose, Gaffney said.
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Satellite Campus
“It’s all about providing access to our programs to more students,” she said. School officials will conduct a feasibility study to see if students are interested in the service, Thomas said. Greenlink began its Clemson service in 2013. Last year, the routes had 62,722 riders. Clemson students, faculty and staff may ride the bus for free with a school ID. Others may ride by paying a $1.50 fare. The commuter bus runs Mondays through Fridays and has a scaled-back service on Saturdays. Some routes don’t run during the summer and holidays. Rickards said connector ridership has gone down a bit, probably due to duplication of service near Verdae with Greenlink’s route 8 and the St. Francis connector. He said Greenlink is considering making changes in July to a circulator service in the Verdae area.
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Fixing the roads
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02.19.2016
ROAD MARKERS
What are the transportation problems in cities around the Upstate, and what can be done about them?
41,392 Center lane miles maintained by SCDOT (54% of total SC public roads)
1/3
pavement in SC interstate system classified as “fair” or “poor”
“It’s really a shame that our roads are in such poor condition, and I don’t know who to blame. I’ll just leave it to politicians.” “I don’t know what the answer is, but I do know it is a hindrance when the roads are in a poor state. A mass transit system would be a help.” Van Broad, City of Mauldin community development director, previously Fountain Inn economic development and Younts Center Director
“We’ve gone from having good comments on the roads to no comments on the roads, and we’re slipping into comments from companies about challenges with the roads.” “For people in the industry, it’s only a matter of time that they may and will have an adverse impact on projects.” Carter Smith, executive vice president, Economic Futures Group of Spartanburg
“Like everyone, I think the business community in Greer is concerned about our roads. … Our job is just to make sure our businesses are aware of all the options; that includes access to rail and access to the airport.” “Access to infrastructure is very, very, very important. It’s usually among the top three that businesses consider.” Reno Deaton, executive director, Greer Development Corporation
80%
pavement in SC’s primary system classified as “fair” or “poor”
85%
pavement in SC’s secondary system classified as “fair” or “poor”
D
level of day-to-day maintenance service estimated for SC road system
$1.6 billion
SFY 2015-16 SCDOT Agency Budget
$400 million
additional investment per year to bring primary roads to 95% good condition in a decade
$1.86 billion “I think the bigger issue isn’t
potholes, it’s how are we going to solve the congestion problem in the next few years. … It is a critical consideration for companies when they look at a location, whether making sure that the roads are in good shape or there’s connections and the design of the roads are adequate for the future.” “There’s got to be a commitment of resources to at least maintaining the quality. … We’re at the point that a lot of our roads are in a condition of disrepair that it becomes dangerous, quite frankly.”
Mark Farris, president and CEO, Greenville Area Development Corporation
“I don’t find a lot of validity to the idea that if we let it get so bad, people are going to stop coming here. … If that were the case, Atlanta would have shut down years ago.” “I don’t think it’s going to stop economic development… but it is going to cost shippers and everyone else a lot more money.” “We really should be taxing vehicles based both on weight and mileage that they operate, as well as we really ought to have differential pricing for peak hours on congested roads.” John Gardner, City of Mauldin Economic Development & Planning
“In South Carolina, we have a good highway system, but it’s in need of repair. It’s critical … It’s really part of our bread and butter for every day with economic development.” “We’ve done very well in keeping Anderson County roads in very good repair. The County Council has done a very good job. … It’s a tightrope to walk, and so far we haven’t had to raise taxes.” Burriss Nelson, economic development director, Anderson County
budget needed in FY15-16 to just break even with impact of inflation in the next decade
$811 million
total annual cost of extra vehicle repairs due to crumbling roads in SC ($255 per motorist)
20.2%
percent decrease in number of structurally deficient bridges in the last five years (improvement)
37th
South Carolina’s rank for percentage of roads in “poor to mediocre” condition Sources: SCDOT’s Feb. 2016 Senate Transportation Committee presentation; Federal Highway Administration; U.S. Department of Transportation
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02.19.2016
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upstatebusinessjournal.com
MOVERS, SHAKERS AND DISRUP TORS SHAPING OUR FUTURE
| INNOVATE | 23
There’s no hotter topic in South Carolina right now than politics, for obvious reasons. With both major parties hosting presidential debates in Charleston and Greenville over the last month, and with primaries scheduled for this weekend and next, the political process is in full swing – and full throat. For those of us in the startup funding world, there’s another hot topic that is entering a primary season of its own. On May 16, long-awaited crowdfunding rules will go into effect allowing entrepreneurs to sell equity in their businesses via crowdfunding equity platforms. Prior to May 16, startups can only raise funds from accredited investors (who meet income or net worth standards established by the Securities and Exchange Commission), but the new rules allow any person to invest, with certain restrictions on how much based on income and wealth. The outcomes on both the political and crowdfunding fronts have the potential to create momentous implications – or to end up being much ado about not a whole lot, with little ultimate practical impact. We will leave the political analysis to the pundits, but on the crowdfunding front, we are willing to take a partisan point of view. In general, we are in favor of increased access to capital and less friction and restriction regarding how individuals choose to allocate their resources. We hope that equity crowdfunding will ultimately provide a more efficient and accessible market for allocating capital to worthy startups of many stripes – while providing adequate returns for the risks taken by investors. However, the risks associated with the brave new world of equity crowdfunding will be significant for both entrepreneurs and investors, particularly in the short term as the market adjusts to the new rules. With nearly 600 pages of SEC rules governing the
a (non-equity) crowdfunding platform that is the first to incorporate live streaming into its user experience. Like other legal crowdfunding sites on the market today that help launch new products via pre-orders or that raise funds to support causes, Crowdr is not raising equity investments for companies. Instead, Crowdr for the first time allows a fundraiser to live stream a message to an audience while simultaneously collecting funds for a cause. The company’s first use case, not surprisingly, is on the political fundraising front. The founders of the company, Michael Stevens and Zach Pippin, have extensive backgrounds in campaign marketing and digital strategy, and they have observed firsthand the declining effectiveness of email campaigns and static fundraising sites. They developed Crowdr to give candidates an opportunity to engage with their audience with transparency on a much broader scale than local town halls, with more richness and engagement than typical email solicitations. By integrating the Crowdr.tv sessions with Facebook, Crowdr allows the “Crowdcaster” to reach a wide but connected audience than can potentially grow virally as comments and questions are shared on participants’ timelines. For politicians at local and national levels who require a steady stream of funding to keep campaigns alive, Crowdr gives them a highly effective new tool to enhance their fundraising efforts. Of course the platform is not limited to politics – other nonprofits and educators can use it too. A Midlands school has already signed up to raise funds during an upcoming student play, and Venture Carolina will use it to offer a pitch workshop on Feb. 25. While the eyes of the nation are on South Carolina in the coming days for primary season, Crowdr aims to keep those eyes coming back for a long time to come. UCAN and SCAN are proud to support the Crowdr team, and regardless of your politics, we hope you’ll check out a Crowdcast soon at crowdr.tv.
UPSTATEBUSINESSJOURNAL.COM/WHOS-WHO
Managing Director, Upstate Carolina Angel Network
implementation of Title III of the JOBS Act, which authorized equity crowdfunding, there will be inevitable pitfalls to navigate. We don’t have space here to enumerate all the issues we anticipate from the equity crowdfunding rules, but suffice it to say there will be a high burden for entrepreneurs (and crowdfunding platforms) to remain in compliance – both in time and money. So our advice to entrepreneurs is to tread carefully, do your due diligence on any crowdfunding site you use, and make sure you engage a knowledgeable securities lawyer. Additionally, be aware that if you do raise money via equity crowdfunding, the complexities and risks of having many small, unaccredited shareholders may dissuade other investors (including UCAN and SCAN) from investing in later rounds. For would-be investors, the new rules will allow access to a new world of investment opportunities – many of which will surely be of dubious quality – so we continue to stress the importance of looking past the hype with thorough due diligence (which of course is one of the key benefits of angel groups like ours). We will be keeping tabs on the impact of the new rules and will likely write more on the topic as some of the dust settles after implementation. In the meantime, given the current intersection of the two hot topics of crowdfunding and politics, it’s an ideal time to announce our newest investment from UCAN and the South Carolina Angel Network: Crowdr.tv. Crowdr.tv, based in Charleston, is
A LEADER? NOMINATE ONE NOW.
By MATT DUNBAR
KNOW AN ENTREPRENEUR?
Politics and crowdfunding are both hot topics in SC
24 | DIGITAL MAVEN |
UBJ
THE TECHNICAL SIDE OF BUSINESS
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02.19.2016
Why small businesses aren’t fighting back against cybercrime UPSTATEBUSINESSJOURNAL.COM/WHOS-WHO
AN UP AND COMER? NOMINATE ONE NOW.
KNOW A YOUNG GUN?
By LAURA HAIGHT president, portfoliosc.com
Experts in cybercrime and security now believe that small businesses are the preferred target for hackers and cybercriminals. In 2014, a Price Waterhouse Coopers survey found that known attacks of medium sized small businesses rose 64 percent in one year. In 2013, the annual Verizon Data Breach survey reported 62 percent of companies attacked by hackers were small businesses. Why do small businesses have such a big target on their backs? 1. They are unaware or unprepared. That makes them easy “low-hanging fruit” for hackers. 2. Automated attacks let cybercriminals reach millions of targets easily. “The criminals don’t care who they’re attacking, and while any given business isn’t worth much, they have viruses or ransomware that allow them to attack thousands or millions,” Greg Shannon, chief scientist at the CERT Division of the Software Engineering Institute at Carnegie Mellon, told CSO Magazine. (goo.gl/CLF0So) 3. The interconnected nature of business today makes every small business a lucrative target. Not necessarily for what you have, but for what your partners, clients, collaborators, contractors and other constituents may have. Just a few years ago, businesses functioned in relatively closed systems. But today, complex networks involve local servers, cloud services, mobile devices and more. Hacking one leads an attacker to many others. The risks of being hacked are high and growing daily. But the costs are through the roof. While Target, Home Depot, Sony and Anthem may be able to muscle through the costs of the massive data breaches they’ve endured, 61 percent of small business will not be able to shoulder the costs of detection, cleanup, lost business and reputational damage. With all this said, why aren’t we doing more? I think there are
three reasons and responses for this. 1. We feel overwhelmed and helpless. If huge global companies, not to mention the state and federal government, with all their resources and capabilities can be hacked, then there is clearly nothing a small business can do. Get your head out of the sand. Good security does not start or end with huge outlays on technology systems. Every hack, no matter how large, that has ever occurred has been made possible by an authenticated user who clicked on something they shouldn’t have, lost something they shouldn’t have been carrying around, misplaced something they should have been protecting or in some other way opened a door. 2. We are lulled into a false sense of security. Perhaps you invested in some high-end technology that promises to identify and stop the external threats to your business. And you breathe a sigh of relief and check the “cybersecurity” box off your list. Not quite. In 2015, $75 billion was spent globally on security hardware and software; this year, that is expected to rise by nearly 25 percent to $101 billion. At the same time, global losses keep growing from $440 million last year to an expected $90 trillion (yes, that’s trillion) by 2030. So despite huge outlays on technology, analysts see the problem continuing to balloon. Why? Because hardware and software systems cannot protect us from our own behaviors. Security is a business problem, not a technology problem, and it requires a business solution. Compartmentalizing it with hardware and software alone is a waste of money. Developing a culture of security that includes strong processes and pro-
cedures that are diligently monitored, a training culture (not just a class once a year to check off for your insurance company), and continual reinforcement coupled with smart technology purchases have to be part of your war strategy. 3. We don’t see it every day. News of cyberattacks is often limited to the largest breaches affecting the biggest or most visible companies. Most businesses and nonprofits that deal with a cyber attacks try to keep it from getting out. While there are both ethical and legal requirements to inform customers, clients, patients or partners of any exposure of their data, these often don’t become public knowledge for small companies. The lack of public awareness that these attacks are happening every day, to people just like us, right here in the Upstate, contribute to a false sense of well-being. It’s as if every other house on your street was being burglarized and no one told you. Doug Hewes, former chief security officer for the state Department of Health and Human Services, has said that cybercriminals are winning because they are better organized, better armed and more patient, and we are ill equipped to fight them. We spend millions of dollars and countless hours writing, reading and strategizing on how to market our business, but precious little thinking about protecting it. Does your business have a social media posting calendar? Do you have similar processes for checking to ensure technology patches are up to date? We need to train and enlist our employees as the most important line of defense, share information, learn from each other and build a cybersecurity plan to protect the business we’re trying so hard to build. Wikimedia Commons
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upstatebusinessjournal.com
INSIDE THE UPSTATE’S NETWORKING AND SOCIAL SCENE
| SOCIAL SNAPSHOT | 25
CONTRIBUTE: Got high-resolution photos of your networking or social events? Send photos and information for consideration to events@upstatebusinessjournal.com.
A LEADER? NOMINATE ONE NOW.
Counselors from various schools within the Greenville County School District visited ScanSource last week as part of an ongoing career development initiative the district has in place to help their school counselors learn more about Upstate businesses. Counselors heard from Joan Burket, director of social responsibility at ScanSource, about the company’s involvement in the community. They then saw a presentation from ScanSource’s HR department before starting a tour of the building and visiting each of ScanSource’s business units to learn more.
KNOW A BOSS?
SCHOOL COUNSELORS VISIT SCANSOURCE
UPSTATEBUSINESSJOURNAL.COM/WHOS-WHO
02.19.2016
26 | ON THE MOVE / NEW TO THE STREET
HIRED
APPOINTED
UBJ
APPOINTED
HIRED
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02.19.2016
APPOINTED
Lee A. Gill
Kurt Rozelsky
Joachim G. Taiber
Peter Townley
Brian J. O’Rourke
Named as chief diversity officer (CDO) and special assistant to the president for inclusive excellence at Clemson University. Gill has 20 years of higher education experience. He most recently served as associate VP for inclusion and equity and CDO at the University of Akron.
Named as vice chair of the 2016 United Way of Greenville County annual campaign. Rozelsky has volunteered with United Way for 21 years in several positions. He is a partner of the Smith Moore Leatherwood firm in Greenville and a member of The Family Effect board.
Named as chief technology officer by the International Transportation Innovation Center (ITIC). Taiber is a research professor at CU-ICAR and has been part of ITIC since its establishment in 2010. He previously served as an in-house consultant for the product development process with BMW AG in Munich.
Named as senior wellness director at the Greenville Health System Family YMCA. Townley has a background in exercise science and most recently served as the division chair for the School of Education, as well as assistant professor of exercise science at Ottawa University.
Named as vice president for development and alumni relations at Clemson University. O’Rourke previously served as associate vice president for Clemson’s Institutional Advancement Division and vice president of development for the Bon Secours St. Francis Health System.
DEVELOPMENT The National Association of Home Builders Executive Officer Council named Michael Dey as VP. Dey is the CEO of the Home Builder’s Association of
CONTRIBUTE: New hires, promotions & award winners may be featured in On the Move. Send information and photos to onthemove@upstatebusinessjournal.com.
Greenville. He previously served as secretary of the Executive Officer Council and has headed the Home Builder’s Association of Greenville for eight years. Goodwyn, Mills and Cawood Inc. hired John Raiford as design engineer and Liz Rhoads as east region marketing manager. Raiford has more than eight years of experience with wet infrastructure projects and sewer/storm system design, among others. Rhoads has more than 13 years of experience in project management and marketing in the architecture, engineering and construction industries.
Open for business 1. Martin Garden Center recently opened at 198 Martin Road, Greenville. The center offers indoor and outdoor plants and garden accessories. For more information, visit martinnursery.com. 2. Supercuts recently opened at 6005 Wade Hampton Blvd., Suite D, Taylors. For more information, visit supercuts.com. 3. Shuckin’ Shack Oyster Bar recently opened at 3620 Pelham Road, Suite 4, Greenville. For more information, visit theshuckinshack. com or call 864-3358975.
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CONTRIBUTE: Know of a business opening soon? Email information to lgood@communityjournals.com.
02.19.2016
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upstatebusinessjournal.com
EDUCATION
actions and business law.
The University of South Carolina Upstate selected Sonya Blevins as a 2016-2017 Amy V. Cockcroft Leadership Fellow. Blevins is the associate dean for the Mary Black School of Nursing at the USC Upstate Greenville campus and serves on the MEDSURG Nursing editorial board. The Amy V. Cockcroft Leadership Program prepares nurse executive leaders for today’s health care organizations.
MARKETING/PR
FINANCE
PLAY-BY-PLAY OF UPSTATE CAREERS
| ON THE MOVE | 27
Simpsonville’s Best Kept Secret
Infinity Marketing hired Pamela Rockwell as a senior media specialist and Raquel Kozlowski as a media assistant. Rockwell previously served as a senior account manager at Erwin Penland. Kozlowski most recently served as a marketing administrator at Tenneessee-based Anna-Vija McClain Marketing. Jackson Marketing, Motorsports & Events hired Brandon Alvarez as event manager. Alvarez has been a T seasonal Jackson associate since 2007 and has served as a fitter at off-road events such as Score Baja 1000 and Mazda MX-5 Cup, among others.
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Deborah McKetty, executive diH E S PRI N G S rector of CommunityWorks, was T H E S PRI N G S named to the Community Investment a t S i m p s o n v i l l e Council of the Federal Reserve Bank of Richmond. McKetty has served in positions in corporate and communiG S T HH EE SSP PR RI IN N G S ty affairs, and community economic T H E S PT RHI EN GSSP R I N G S NONPROFIT development at national banks includa t S i m p sa ot n Sv i i m l lp e s o n v i l l e G S HT EHHEEE SSSS G S ing the Chase Manhattan Bank and P PP R RP IR GI S IN R N GINS N Upstate Forever added Joy Dick- T H Wells Fargo. erson as assistant financial director and Aldon Knight as director of deLEGAL velopment. Dickerson is a graduate of the University of North Carolina Nelson & Galbreath LLC added Chapel Hill and has experience in William L. Glenn to the firm. Glenn’s Knight hasS H SSP PTR accounting. G S R RI IN N G H EE public RIH HINEEN GSPSP G25Syears practice includes commercial Tand of experience in external relations, residential real estate and business www.thespringsatsimpsonville.com fund raising and communications law. He was previously with Leinster 864-962-8570 214 East Curtis Road, Simpsonville, SC 29681 working at several universities. Law Firm handling real estate transa
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Owning a business is a labor of love. But FRANKLY, your insurance shouldn’t make more work for you. Ready to have a frank conversation about insurance? At Turner Agency Insurance, we believe the best relationships are honest, up front and fair. We’ve been serving the Upstate and beyond since 1962. After all, trust is proven over time. Want to get frank about insurance? Let’s talk. Visit Turner Agency Insurance at www.turneragencyinc.com or call 864.288.9513 today.
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28 | THE FINE PRINT |
UBJ
BUSINESS BRIEFS YOU CAN’ T MISS
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02.19.2016
Lockheed Martin selects Greenville as preferred T-50A FACO site
National Land Realty lists Ray Scott Legacy Lakes property
Lockheed Martin selected its Greenville operations facility as the preferred Final Assembly and Checkout (FACO) site to manufacture its T-50A aircraft offering in the U.S. Air Force’s Advanced Pilot Training (APT) competition. “Following a detailed examination, the Greenville Operations facility was selected based upon the unique requirements of the APT competition and the support and partnership of the state of South Carolina,” said Orlando Carvalho, executive VP of Lockheed Martin Aeronautics. “While the FACO site will be located in Greenville, Lockheed Martin will continue leveraging people and capabilities from across our corporation and our industry partners to win the APT competition.” Lockheed Martin’s Greenville operations facility, located at the S.C. Technology and Aviation Center (SCTAC), has a history of proven performance in aircraft FACO, as well as extensive capabilities in modernization and upgrades on a variety of aircraft platforms, according to a release. The 227-acre Greenville site has 13 hangars, 1,200,000 square feet of covered space optimized for APT and 8,000 feet of runway. Greenville is also home to a workforce of Lockheed Martin aviation technicians, engineers, program managers and other experienced personnel.
Greenville-based National Land Realty has been entrusted to sell the Ray Scott Legacy Lakes property in Pintlala, Ala. This network of bass fishing lakes, plus the accompanying lodge, boathouse and cabin, is one of the most legendary private lake systems in the nation, according to a release. The 200-acre property also includes an 80-acre high fence whitetail enclosure and commercial lodge, among others. “We’re honored to list this once-in-a-lifetime property for National Land Realty’s land sales and investment customers,” said Jerry Joe Ingram, broker for the property. “Mr. Scott has done more than anyone in the country to transform bass fishing into the exciting sport we know today, and his lakes are the culmination of a lifetime in working to create the ultimate bass fishing environment.” Scott founded the Bass Anglers Sportsman Society in 1967 and created the first national bass tournament trail, Bassmaster Magazine and the Bassmasters TV show. His three custom-designed legacy lakes have been recognized as a “best bass lake” by Outdoor magazine.
Gordian Group introduces three products The Gordian Group, a Greenville-based provider of construction cost analytics, estimating information, pricing data and procurement software and services, introduced two new products and a third with expanded features. Gordian Maintenance, Repair and Operations (MRO) provides a way to handle maintenance and repair projects with preset pricing and high-quality contractor networks. The solution is designed to respond to a variety of needs from scheduled maintenance to emergency repairs and also helps facility owners prioritize and track the progress of projects. Gordian Change Order Management Solution (COMS) assists facility owners in minimizing the effects of changes to a capital project’s budget and timeline, and eliminates the risk and complexity of managing change orders. RSMeans’ Life Cycle Costing for Facilities allows facility owners to improve the long-term performance of their buildings and gauge installed costs versus long-term facility maintenance costs, and allows users to quickly create sustainment estimates for both new construction and renovations. “The Gordian Group never stops developing new and improved solutions to meet our clients’ evolving needs,” said William Pollak, CEO. “Each solution is built on Gordian’s product-development foundation that taps into the company’s unparalleled software, data and expertise.”
East Bay Tire Co. joins Michelin Commercial Service Network Michelin Americas Truck Tires, a division of Michelin North America Inc., announced that East Bay Tire Co. joined the Michelin Commercial Service Network (MCSN), expanding the MCSN coverage in California. With 70 service trucks and 60 TIA-certified service specialists, East Bay Tire will offer a complete range of services, including repairs, inspection and alignments, Michelin ONCall emergency road service and Michelin Tire Care preventative tire monitoring. East Bay Tire will provide professional service to commercial customers with Michelin, BFGoodrich and Uniroyal products that include commercial and heavy truck, industrial, earthmover, agricultural, ATV, lawn and garden, golf cart, trailer and passenger/light truck tires. “After a 20-year partnership with Michelin, East Bay Tire is honored to be a part of a very exclusive network of dealers focused on offering the best products and services in the country for commercial fleets,” George Pehanick, CEO of East Bay Tire, said in a release.
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SPONSORS PRESENTING SPONSOR
DIAMOND SPONSOR
PLATINUM SPONSORS BMW MANUFACTURING CO. BON SECOURS ST. FRANCIS HEALTH SYSTEM DUKE ENERGY THE GREENVILLE NEWS SCANSOURCE, INC.
127TH ANNUAL MEETING
TUESDAY, FEBRUARY 23, 2016
SYNNEX CORPORATION TD CONVENTION CENTER
TD CONVENTION CENTER 5:30 PM — RECEPTION 6:00 PM — DINNER AND PROGRAM
AWARD SPONSORS AT&T
PRESENTED BY
Featuring SPECIAL GUEST SPEAKER
Beverly Wyse Vice President and General Manager Boeing South Carolina
BANK OF AMERICA BB&T DIXON HUGHES GOODMAN LLP FURMAN UNIVERSITY MICHELIN NORTH AMERICA OGLETREE, DEAKINS, NASH, SMOAK & STEWART, P.C. THE PEACE CENTER FOR THE PERFORMING ARTS
Join the Greenville Chamber to celebrate the progress of our business community and its innovative leaders, and take a look through the lens of the Chamber’s new vision and goals for the year ahead.
For sponsorship and event details, visit www.greenvillechamber.org.
QUALITY OF LIFE BRAND LLC
30 | #TRENDING |
UBJ
INFORMATION YOU WANT TO KNOW
OVERHEARD @ THE WATERCOOLER
> Fay Choban via FB “Sure would be great to see this happen sooner rather than later.” > Johannes Van Tuyl via FB “HUGE if it happens. Is the city going to use eminent domain or will this be private sales in the free market?” > Matt Tollison via FB “Bring it…”
RE: JOY BAILEY LOOKS BACK ON 40 YEARS AS A PIONEER WOMAN IN REAL ESTATE > Julie Brown via FB “Congratulations Joy Bailey! I’ll always value the ‘hug and shove’ you gave me thru the years! :) What a great article honoring you!” > Robin Martin Thompson via FB “Love this! And love Mrs. Joy!” > Shirley Cisson Cash via FB “My first broker in real estate and still to this day a friend and mentor! Thank you Miss Joy for all that you did for me and for believing in me!” > Dawn Cook Fowler via FB “My first Broker!” > Keith Best via FB “This is my sister, Joy Bailey. I’ve always been very proud of her, and this article covers only a small part of what I love about her!”
>> CONNECT WITH US We’re great at networking.
FEBRUARY 12, 2016
Ode to
JOY Joy Bailey looks back on 40 years as a pioneering woman in real estate Page 16
02.19.2016
BIZ BUZZ
Distilled commentary from UBJ readers
RE: POINSETT CORRIDOR COULD SEE ENTREPRENEURSHIP HUB, HOTEL IN COMING YEARS
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| VOL. 5 ISSUE 7
DIGITAL FLIPBOOK ARCHIVE >>
COMPLIMENTARY
The layout of print meets the convenience of the web: flip through the digital edition of any of our print issues at >> upstatebusinessjournal. com/past-issues
>> WEIGH IN @ THE UBJ EXCHANGE Got something to offer? Get it off your chest. We’re looking for expert guest bloggers from all industries to contribute to the UBJ Exchange. Send posts or blog ideas to eprice@communityjournals.com.
RE: DOWNTOWN GREENVILLE GROCER CIANCIOLA’S CLOSING > Marie Limnios Blough via FB “Sad ... they literally dished up the most delicious made-from-scratch lunches and soups. They said the ongoing construction and sidewalk closure for the past 5 months from a neighbor who is upfitting their new space was the reason they are closing. Bad location for a B2C business - I know...I own the B2B business next door.” > Nichole Livengood via FB “They were in an awkward place with little foot traffic.” > Brann Fowlers via FB “Had a good run I suppose” > Anita Quiros Harley via FB “I think they needed to advertise. Not sure people knew they were there. Sorry to hear this!”
The top 5 stories from last week’s issue ranked by shareability score
>> 343
1. Poinsett Corridor could see entrepreneurship hub, hotel in coming years
>> 334
2. Bosch Rexroth to invest $5M in Fountain Inn facility
>> 282 3. GB&D in the Village to offer ‘approachable, classic food’
>> 182 4. Joy Bailey looks back on 40 years as a pioneer woman in real estate
>> 172 5. NEXT Manufacturing announces 3 tenants, open for business
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> Harris Estate Services, LLC via FB “Looking forward to this one!” > Abbey Sheftel Turner via FB “Vegan food, yaay!!!!”
UPSTATEBUSINESSJOURNAL.COM
02.19.2016
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upstatebusinessjournal.com
DATE
Tuesday
2/23
WHERE DO I GO?
HOW DO I GO?
Comprehensive Small Business Start-up Workshop
Greenville County Library, Hughes Branch 25 Heritage Green Place, Greenville 9:30 a.m.-4 p.m.
Cost: $69 (second person, same company, $25) Register: piedmontscore.org/workshops/ register/212
SAE and SAWF Women Driving Industry Forum and networking event for male and female professionals and students
CU-ICAR 5 Research Drive, Greenville 4-6:30 p.m.
Cost: $30 SAE or SAWF members, $40 nonmembers, $10 students Register: bit.ly/sawforum
Greenville Chamber Annual Meeting Speaker: Beverly Wyse, vice president and general manager of Boeing, S.C.
TD Convention Center One Exposition Drive, Greenville 5:30 p.m.
Cost: $85 investors, $150 non-investors Register: bit.ly/anmeeting-jan2016
MESH Event: Bio and Health Innovation 101
Brewery 85 6 Whitlee Court, Greenville 6-7:30 p.m.
More info: bit.ly/mesh-feb2016
SC Automotive Summit IngeniousSC! Preview the latest commercial-ready technologies
Michelin Conference Center 517 Michelin Drive, Greenville 11:30 a.m.-4:30 p.m.
Cost: $150 members, $195 nonmembers Register: bit.ly/ingenioussc-feb2016
HTI Organizational Solutions’ Friday Morning Coffee Monthly Series on current HR topics
Human Technologies Inc. 105 N. Spring Street Suite 200, Greenville 8:30-9:30 a.m.
Cost: Free Register: marchfmc.eventbrite.com
Wednesday
2/24 Friday
3/4
| PLANNER | 31
EVENT INFO
Saturday
2/20
EVENTS YOU SHOULD HAVE ON YOUR CALENDAR
CONTRIBUTE: Got a hot date? Submit event information for consideration to events@upstatebusinessjournal.com. ART & PRODUCTION
IN THIS WEEK’S ISSUE OF UBJ? WANT A COPY FOR YOUR LOBBY?
ART DIRECTOR
MARCH 18 THE TECH ISSUE Local technological innovations and revolutions.
Whitney Fincannon 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
PHOTO COORDINATOR/LAYOUT PRESIDENT/CEO
Mark B. Johnston mjohnston@communityjournals.com
UBJ PUBLISHER
Ryan L. Johnston rjohnston@communityjournals.com
EXECUTIVE EDITOR
Susan Clary Simmons ssimmons@communityjournals.com
MANAGING EDITOR
UBJ milestone
UBJ milestone jackson Marketing Group’s 25 Years 1988 Jackson Dawson opens in Greenville at Downtown Airport
Tammy Smith
1988
ADVERTISING DESIGN Kristy Adair, Michael Allen
1993
1990 Jackson Dawson acquires therapon marketing Group and moves to Piedmont office Center on Villa.
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with a majority of them utilizing the general aviation airport as a “corporate gateway to the city.” In 1997, Jackson and his son, Darrell, launched Jackson Motorsports Group. The new division was designed to sell race tires and go to racetracks to sell and mount the tires. Darrell Jackson now serves as president of the motorsports group and Larry Jackson has two other children and a son-in-law who work there. Jackson said all his children started at the bottom and “earned their way up.” Jackson kept the Jackson-Dawson branches in Detroit and others in Los Angeles and New York until he sold his portion of that partnership in 2009 as part of his estate planning. The company now operates a small office in Charlotte, but its main headquarters are in Greenville in a large office space off Woodruff Road, complete with a vision gallery that displays local artwork and an auditorium Jackson makes available for non-profit use. The Motorsports Group is housed in an additional 26,000 square feet building just down the street, and the agency is currently looking for another 20,000 square feet. Jackson said JMG has expanded into other verticals such as financial, healthcare, manufacturing and pro-bono work, but still has a strong focus on the auto industry and transportation. It’s
OPERATIONS Holly Hardin
1997 Jackson Dawson launches motorsports Division
Chairman larry Jackson, Jackson marketing Group. Photos by Greg Beckner / Staff
Jackson Marketing Group celebrates 25 years By sherry Jackson | staff | sjackson@communityjournals.com
Solve. Serve. Grow. Those three words summarize Jackson Marketing Group’s guiding principles, and according to owner Larry Jackson, form the motivation that has kept the firm thriving for the past 25 years.
Jackson graduated from Bob Jones University with a degree in video and film production and started his 41-year career in the communications industry with the U.S. Army’s Public Information Office. He served during
Vietnam, where he said he was “luckily” stationed in the middle of Texas at Fort Hood. He left the service and went to work in public affairs and motorsports at Ford Motor Company in Detroit. After a stint at Bell and Howell, where he was responsible for managing Ford’s dealer marketing and training, the entrepreneurial bug hit and he co-founded Jackson-Dawson Marketing Communications, a company specializing in dealer training and product launches for the auto industry in 1980. In 1987, Jackson wanted to move back south and thought Greenville would be a good fit. An avid pilot, he
learned of an opportunity to purchase Cornerstone Aviation, a fixed base operation (FBO) that served as a service station for the Greenville Downtown Airport, providing fuel, maintenance and storage. In fact, when he started the Greenville office of what is now Jackson Marketing Group (JMG) in 1988, the offices were housed on the second floor in an airport hangar. “Clients would get distracted by the airplanes in the hangars and we’d have to corral them to get back upstairs to the meeting,” Jackson said. Jackson sold the FBO in 1993, but says it was a great way to get to know Greenville’s fathers and leaders
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2003 motorsports Division acquires an additional 26,000 sq. ft. of warehouse space
1998 1998 Jackson Dawson moves to task industrial Court
also one of the few marketing companies in South Carolina to handle all aspects of a project in-house, with four suites handling video production, copywriting, media and research and web design. Clients include heavyweights such as BMW, Bob Jones University, the Peace Center, Michelin and Sage Automotive. Recent projects have included an interactive mobile application for Milliken’s arboretum and 600-acre Spartanburg campus and a marketing campaign for the 2013 Big League World Series. “In my opinion, our greatest single achievement is the longevity of our client relationships,” said Darrell Jackson. “Our first client from back in 1988 is still a client today. I can count on one hand the number of clients who have gone elsewhere in the past decade.” Larry Jackson says his Christian faith and belief in service to others, coupled with business values rooted in solving clients’ problems, have kept
2009 Jackson Dawson changes name to Jackson marketing Group when larry sells his partnership in Detroit and lA 2003
2009-2012 Jackson marketing Group named a top BtoB agency by BtoB magazine 4 years running
him going and growing his business over the years. He is passionate about giving back and outreach to non-profits. The company was recently awarded the Community Foundation Spirit Award. The company reaffirmed its commitment to serving the community last week by celebrating its 25th anniversary with a birthday party and a 25-hour Serve-A-Thon partnership with Hands on Greenville and Habitat for Humanity. JMG’s 103 full-time employees worked in shifts around the clock on October 22 and 23 to help construct a house for a deserving family. As Jackson inches towards retirement, he says he hasn’t quite figured out his succession plan yet, but sees the companies staying under the same umbrella. He wants to continue to strategically grow the business. “From the beginning, my father has taught me that this business is all about our people – both our clients and our associates,” said his son, Darrell. “We have created a focus and a culture that strives to solve problems, serve people and grow careers.” Darrell Jackson said he wants to “continue helping lead a culture where we solve, serve and grow. If we are successful, we will continue to grow towards our ultimate goal of becoming the leading integrated marketing communications brand in the Southeast.”
2011 Jackson marketing Group/Jackson motorsports Group employee base reaches 100 people
2008 2012 Jackson marketing Group recognized by Community Foundation with Creative spirit Award
pro-bono/non-proFit Clients American Red Cross of Western Carolinas Metropolitan Arts Council Artisphere Big League World Series The Wilds Advance SC South Carolina Charities, Inc. Aloft Hidden Treasure Christian School
CoMMUnitY inVolVeMent & boarD positions lArry JACkson (ChAirmAn): Bob Jones University Board chairman, The Wilds Christian Camp and Conference Center board member, Gospel Fellowship Association board member, Past Greenville Area Development Corporation board member, Past Chamber of Commerce Headquarters Recruiting Committee member, Past Greenville Tech Foundation board member
APRIL 15 INVESTING 101 Funding and finance.
David Jones (Vice President Client services, Chief marketing officer): Hands on Greenville board chairman mike Zeller (Vice President, Brand marketing): Artisphere Board, Metropolitan Arts Council Board, American Red Cross Board, Greenville Tech Foundation Board, South Carolina Chamber Board eric Jackson (Jackson motorsports Group sales specialist): Salvation Army Boys & Girls Club Advisory Board
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