OCTOBER 9, 2015 | VOL. 4 ISSUE 41
BIG FISH,
LITTLE FISH Despite national trends, Upstate community banks are thriving – and competing – in an increasingly crowded pond pg 5
EMV IS COMING
But it doesn’t have to be scary. Upgrade your terminals to EMV formatting before the October deadline. It’s an important shift to a more secure chip and signature card technology. Learn more at www.tandempayment.com/EMV Tandem is a registered ISO/MSP of Chase Paymentech Solutions, LLC
Tandem Innovative Payment Solutions 728 N Pleasantburg Dr, Greenville, SC 29607 (864) 672-1570 www.tandempayment.com
10.09.2015
|
INFORMATION YOU WANT TO KNOW
upstatebusinessjournal.com
Greenville bank fires CEO, stops payments program ASHLEY BONCIMINO | STAFF
aboncimino@communityjournals.com Greenville-based bank holding company Independence Bancshares halted development of its new payments program and fired its president and CEO Gordon Baird “in connection with the suspension” of the project, according to filings with the U.S. Securities and Exchange Commission. “The board of directors will explore strategic alternatives to for this line of business,” according to filings. “There have been no material changes to the Bank’s operations.” Independence CFO Martha Long told UBJ that further announcements would be made public in accordance with federal regulations. Long declined to comment at this time. The company did not give a reason for suspending its digital banking, payments and transaction services business. Independence announced raising $8.4 million in tier one capital for its payments platform
project this June. Independence Bancshares has terminated all employees related to the project – including Baird – but none with the bank, according to filings. The holding company did not Baird announce Baird’s replacement, but said Independence National Bank CEO Lawrence R. Miller will remain in his position. Baird rose to the holding company’s top spot at the end of 2012 when the holding company closed a $14.1 million private placement deal. The announcement said Baird’s appointment was “in connection with the closing of the offering,” and noted Baird’s “extensive experience in bank regulatory issues and payments, technology, consumer finance and capital markets.”
| BANKING & BREWERS | 3
13 Stripes to locate in Taylors Mill Brewery planning for spring 2016 launch Brewery-in-planning 13 Stripes signed a lease for a space in the Taylors Mill this week, said cofounder Kenworth Reeves. The brewery searched for a location for nearly a year and will locate in an 8,000-square-foot space near the Due South Coffee Roasters. “While finding the right space has been one of our toughest challenges, we are incredibly excited to announce that 13 Stripes will be joining the Taylors Mill community. We believe in the vision there and feel the uniqueness of the mill will reinforce what our brand stands for: history, legacy and community,” Reeves said. He said equipment for the space will be ordered in the next few weeks and estimates a spring 2016 opening.
Strong local knowledge and talent National perspective and resources The Greenville office of Jackson Lewis is best known for its sophisticated employment litigation practice, its national ERISA practice, and its Fair Labor Standards Act work. We advise businesses on all aspects of employment law and regularly defend businesses in employment law disputes. To learn more about the services we offer in Greenville, please contact Office Managing Shareholder Stephanie Lewis at (864) 232-7000 or lewiss@jacksonlewis.com. With 800 attorneys practicing in major locations throughout the U.S. and Puerto Rico, Jackson Lewis provides creative and strategic solutions to employers in every aspect of workplace law. Recognized as a “Powerhouse” in both Complex and Routine Employment Litigation in the BTI Litigation Outlook 2015 and ranked in the First Tier nationally in Employment Law – Management; Labor Law – Management and Litigation – Labor and Employment in U.S. News – Best Lawyers® “Best Law Firms,” our firm has one of the most active employment litigation practices in the world. To learn more about our services, please visit us at www.jacksonlewis.com.
JACKSON LEWIS P.C. 15 South Main Street • Suite 700 Greenville, SC 29601 • (864) 232-7000
4 | THE RUNDOWN |
|
10.09.2015
Sanctuary Pointe aims to lure outdoor lovers West End Apartments earn DRB approval Nelson Mullins’ Mike Johnson is One to Watch
10 12 16
TOP-OF-MIND AND IN THE MIX THIS WEEK
UBJ
VOLUME 4, ISSUE 41 Featured this issue:
MONEY SHOT: An artist’s rendering of the viewing tower at the planned Great Outdoors Center at Sanctuary Pointe on Lake Hartwell in Oconee County. See our story on page 10.
WORTH REPEATING “You can play big when you need to play big, and play small when you need to play small.” Page 5 “Smaller players in our industry will need to consolidate in order to survive.” Page 8 “No one meets everybody’s needs. No one can make everybody happy, which predicates the story of my life.” Page 12
TBA
VERBATIM
On the storm The OfficeMax store on Woodruff Road at the
Shops at Greenridge will be closing its doors on Nov. 14. The company says the Office Depot store nearby at 101 Verdae Blvd. will remain open.
“We can anticipate a long period of assessment and recovery.” Acting SC Transportation Secretary Christy Hall, on last weekend’s “1,000-year storm” that caused billions of dollars worth of damage and killed at least 13 people. Hall has asked for $5 million in federal emergency-relief funds to help with recovery efforts.
10.09.2015
|
INFORMATION YOU WANT TO KNOW
upstatebusinessjournal.com
Upstate banking field more crowded than ever M&A of older community banks and entrance of new players have changed the field ASHLEY BONCIMINO | STAFF
aboncimino@communityjournals.com It’s been a year of change for the Upstate’s banking market, from big deals such as the $241 million purchase of The Palmetto Bank and the piecemeal sale of CertusBank’s interstate empire, to the eager entrance of new players, including Charleston’s CresCom Bank as well as High Point Bank and Entegra Bank from North Carolina. Part of the commotion is business as usual for the Upstate, which has always had prominent banking activity and a high level of interest, according to Art Seaver, president and CEO of Southern First Bank. The other part is a matter of necessity, he says. “Fifteen years ago there were 94 banks that were headquartered in South Carolina. Today, there are less than 60,” Seaver said. Increasing regulatory costs – among other provocations – were driving up the necessary critical mass for operating a healthy bank, he said. “I think you have to be a certain size in this stage just to break even.” SEEKING THE SWEET SPOT On top of the $241 million United Community Bank and Palmetto Bank merger, the Upstate also saw the $22.3 million merger between Carolina Alliance Bank and Pinnacle Bank of South Carolina this year. High Point Bank in North Carolina acquired the bulk of CertusBank’s Upstate accounts, while Entegra Bank (previously Ga.-based Macon Bank) plans to open its first three Upstate branches in Greenville, Anderson and Spartanburg by the end of 2015. “Every market is competitive, but I would say the competition in this market continues to
DEFINED Community bank: A commercial bank that derives funds from and lends to the community where it operates, and is not affiliated with a multibank holding company. Assets may range from less than $10 million to $10 billion or more.
The $10 billion threshold The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law in 2010, established a $10 billion assets threshold that, once surpassed, designates a bank as a midsized institution. This requires them to comply with an additional set of regulations involving significant expenditures of time, effort, and money. Source: CFO.com
intensify,” said Jimmy Kimbell, who piloted Entegra’s first foray into the Palmetto State with a loan production office in downtown Greenville. Previously located only in North Carolina, the bank decided to go public last year, which provided capital to help it begin to grow into other markets, particularly highgrowth markets like Greenville, according to Entegra CEO and President Roger Plemens. The loan production office will be converted into a standalone Greenville branch on Roper Mountain Road, and the bank is expected to hit $1 billion in assets after it finishes acquiring two branches in Anderson and Chesnee, S.C., from Greenville-based Arthur State Bank. BANKING continued on PAGE 6
| BANKING | 5
Your Instant Eyewitness…
Catch Them In The Act BlueVue24 is a wireless outdoor/indoor video verification system that detects intruders and sends a 10 second video clip of the incident to our monitoring station. Police are dispatched to a crime actually in progress.
Serious Security 1-888-407-SAFE (7233)
blueridgesecuritysolutions.com
A subsidiary of Blue Ridge Electric Co-op
6 | BANKING |
UBJ
INFORMATION YOU WANT TO KNOW
BANKING continued from PAGE 5
“I think we need to be a little bigger to hit that sweet spot,” Plemens said. The $241 million acquisition deal with Palmetto Bank pushed United Community Bank’s total assets to $9.4 billion, which is within striking distance of the $10 billion threshold that puts banks in a different regulatory category under the Dodd-Frank Act. UCB President and COO Lynn Harton said the bank is preparing for that threshold, and that thanks to organic growth, the bank could be subject to new regulations as early as mid 2017. “The way we look at it, we’re in business to serve our customers and our community,” Harton said. “So we will grow, and we will go over [the threshold]; we just need to be prepared.” Harton said a good size for UCB might be between $10 billion and $50 billion in assets. PLAYING BIG, PLAYING SMALL Banks often discover the sweet spot can be hard to define. For example, SunTrust CEO and President Bill Rogers says the multistate, $189 billionasset bank operates in the sweet spot in the middle. SunTrust accounts for 8.2 percent of the 10-county Upstate market’s total deposits, according to FDIC data. “You can play big when you need to play big, and play small when you need to play small,” Rogers said. In real terms, that means banks are fighting to balance giving customers that “community bank feel,” where they know their bankers by name, with a high level of specialization for particular populations and business segments, according to SunTrust regional president David Torris. Specialization may include
“The way we look at it, we’re in business to serve our customers and our community...So we will grow, and we will go over [the threshold]; we just need to be prepared.” UCB President and COO Lynn Harton a range from aging services for the growing number of retirees in the region, for example, to logistics industry banking or franchise services, he said. NEW ENTRANTS WANT THEIR SHARES New players to the Upstate this year include Charleston-based CresCom Bank, which opened its first Upstate branch on Haywood Road in September. The
|
10.09.2015
$1.3 billion-asset bank joins Entegra and others in the effort to build a recognizable presence with consumers and businesses in an already crowded market. While increased activity means more competition, that also means more opportunity to earn and keep business within one of the state’s most vibrant regions, according to CresCom President and CEO David Morrow. “Everyone has a choice of where they want to be. Everyone gets to choose where they want to bank,” Morrow said, noting that part of CresCom’s strategy for the Upstate included hiring bankers who already had years of experience and contacts in the market. For CresCom, that meant tapping 23-year Upstate banker Scott Frierson as executive vice president for the region, as well as 40-year banking veteran Craig Robinson. “I like to tell people that you need a banker, not a bank,” said Frierson, who previously spent time building business for CertusBank, Regent Bank and Carolina First Bank. “And everybody says that, but not everybody delivers that.” Seaver of Southern First – as well as Kimbell of Entegra and Torris of SunTrust – agrees. “It’s a people game. It’s still a talent game, and I think that’s why we continue to grow,” said Seaver. “Every bank is going to say that, but… market share and growth will tell you that difference.”
COMMUNITY BANKS BY REGION North Central – 24.3% Midwest – 19.6% Southeast – 19.3% Southwest – 15.5% Northeast – 10.4% West – 8.6% Source: Independent Community Bankers of America
TAKE FULL ADVANTAGE OF THE POWER OF THE COMMERCE CLUB ONE MEMBERSHIP
10.09.2015
|
INFORMATION YOU WANT TO KNOW
upstatebusinessjournal.com
| HOSPITATLITY | 7
Rotisserie league Canadian franchise PigOut Catering is within spitting distance of the Upstate SHERRY JACKSON | STAFF
sjackson@communityjournals.com Canada-based PigOut Catering is looking to bring its franchise concept to the U.S. and is specifically looking at Greenville and the Upstate as one of its target markets. The mobile catering business, which features a custom trailer and roaster – which can roast a whole pig in as little as three hours – currently has eight locations in southern Ontario and is looking to expand. Owner Anne Dickson, who originally hails from Britain, recently completed the paperwork to begin offering franchises in the U.S. and is working now on getting the first one set up in Miami. Dickson said the Greenville market fits into the demographic they are looking for: a “yearround weekend destination market with lots of outdoor event opportunities.” The franchise gives owners a business without the high fixed overhead, she said. The business appeals to chefs, caterers, outdoor cooking enthusiasts, event planners and
HIGH ON THE HOG
$100,000
approximate cost of buying in to the PigOut Catering franchise. Includes custom-designed trailer or van and all kitchen equipment
5% 3% $100/month
ongoing royalty fees marketing fee
others who want to own a “hands-on business with no cap on growth.” It’s about $100,000 to buy into the franchise, and that includes a custom-designed trailer with a kitchenette or van with walk-in refrigeration and all of the kitchen equipment needed. Ongoing royalty fees are 5 percent along with a 3 percent marketing fee and online booking system fee of $100 per month. Dickson’s husband designed the rotisserie equipment, which can not only roast a whole hog, but also 40 chickens or several turkeys at a time. “It’s the only technology in North
America that can allow meat to cook so quickly as it’s constantly rotating and can cook at a higher temperature,” said Dickson. Training and getting set up takes about two months, and exclusive territories are being offered. The ability to see the meat while it’s cooking through a smoke-free glass panel door makes the concept part of the entertainment of an event. Chefs also carve the meat in front of guests adding to the “wow” factor, Dickson said. “It’s all about the show.” For more information, visit www.pigout.catering.
online booking system fee
• 50% off ala Club for Members and Family • 2 complimentary rounds of golf each month at each of our 200+ Country Clubs across U.S. • 2 complimentary 4 course meals at each of our 40+ Business Clubs across the U.S. No other business club can offer you such robust home club and travel benefits, ideal for both social and business use. Find out more today, call Stephanie Page 864.232.5600 or email stephanie.page@clubcorp.com 55 Beattie Place | commerce-club.com | 864.232.5600
8 | Q&A |
UBJ
INFORMATION YOU WANT TO KNOW
The Impact of Fast Growth on Employees Businesses agree: Growth is Good! Growth means new clients and increased production. Ultimately, growth translates to increased profit. Employees may view growth differently. Growth can be scary. It can mean more work in less time. Employees may worry about additional hours, the impact of stress on their personal lives, and added potential to make mistakes. They may feel that they are overworked and need help, but that no one is listening. As business leaders, how do we maximize growth and manage employee morale? • Hire sooner rather than later. Businesses LEE YARBOROUGH often hire in a reactive manner. However, the most successful companies hire before the need arises. Personnel requirements should be constantly monitored and the candidate search should begin before the crisis point. • Manage the hiring process. Hiring and recruiting require a great deal of time and money. However, finding the right employees to grow your business is worth it. Take the time to update job descriptions, advertise effectively, work with recruiting firms and consider using employee assessments. • Involve the team in the process of structuring new positions. Current employees may feel threatened by the possibility of new personnel. Ask for feedback from employees and keep communication open. Post jobs internally first. When recruiting from the outside, consider having key employees involved in the interview process. This will make them feel less threatened by new hires. • Create a training program. Whether formal or informal, a training program for new hires is crucial to your growth strategy. Focus the training on the skills and knowledge necessary to perform the job successfully as well as the cultural expectations of the job. • Evaluate current employees. Do you have the right people on your team to grow with you? You must make objective assessments of your current employees, in particular, the management. Additional training or resources may elevate current managers to the necessary level, but if not, you must be willing to make difficult decisions. • Plan for physical expansion. Can your current facility handle your expected growth? Can you make modifications to optimize your space and expand your timeline? Remember the three C’s: Coordinate, Communicate and Celebrate. Plan your growth strategy; be open to your staff; and celebrate your growth. Encourage everyone to work towards continued success. And most importantly, enjoy, this is when business becomes fun!
669 N. Academy Street, Greenville, SC 864.679.6055 | 800.446.6567 | www.propelhr.com
|
10.09.2015
Next decade could be ‘very disruptive in our industry’ Nissan Renault Alliance CEO Carlos Ghosn describes the future of the auto industry ASHLEY BONCIMINO | STAFF
aboncimino@communityjournals.com After 18 years with Michelin – including six years in Greenville as Michelin North America CEO – Carlos Ghosn leads one of the world’s largest automotive groups, Nissan Renault Alliance. The $158 billion automaker manufactures one out of every 10 cars sold globally and accounts for half the international market share for electric vehicles. Credited as the first person to run two Fortune Global 500 firms simultaneously, Ghosn answered UBJ’s questions on trends, workforce development and the car of the future, all of which could have big implications for the industry and your next car purchase. What do you see as the most significant force shaping the auto industry today? First, there is the combination of new technologies and regulations. Emissions regulations will continue to get tougher. That has already spurred the industry to embrace new, cleaner powertrain technologies, such as battery electric vehicles and fuel-cell electrics. Connected technologies also promise to disrupt our industry. We’ll see a remarkable evolution of the car and how we use it, which will benefit the driver. For example, “autonomous drive” technology will soon allow you to let the car safely handle stop-and-go traffic, or maintain control on long highway drives, including lane changes. This will free the driver, at his or her option, to use that time more productively. And it will make driving in such conditions much less stressful. Second, I believe we will continue to see more consolidation within the industry. The substantial costs of R&D into new technologies and to develop new products are such that smaller players in our industry will need to consolidate in order to survive. Consolidation can take different forms, including mergers, acquisitions, partnerships and alliances.
What does the car of the future look like? I wish I knew the answer to that question! Imagining how the car will look and perform, even within just 10 years from now, is a risky task. We know it will be more connected, it will have lower emissions and it will have the option to perform more tasks autonomously. The big question is how this will happen, with which technologies? What are the features the public will embrace? What role will technology companies, like Google and Apple, play? Which of the traditional automakers will succeed and which will fail? The next decade could potentially be a very disruptive one in our industry. Why has it taken so long for consumers to catch on to electric vehicles? It has taken longer than we initially expected, but we have always looked at this as a long-term commitment. The biggest challenge has been to expand the charging infrastructure to remove anxiety about electric vehicle range. We see in countries where there has been a public-private commitment to expanding charging and encouraging the purchase of electric vehicles, sales have grown rapidly. Norway, an oil-rich country, is a good example. Lower taxes, parking incentives, free charging and a concentrated effort to install chargers across the country have made a big difference. Are you concerned at all about fluctuating gas prices? Absolutely not. EVs are a long-term strategy; you cannot change course >>
10.09.2015
|
INFORMATION YOU WANT TO KNOW
upstatebusinessjournal.com
>> because of temporary ups and downs in the price of gasoline. There will always be fluctuations, but the long-term trend in oil is clear. It’s also important to remember that the biggest driver toward a future of zero-emission vehicles is climate change. That is a significant factor pushing the industry to innovate in powertrains. Governments around the world are imposing stricter limits on CO2 emissions, and the industry is responding. It is why you are seeing other automakers follow our lead and introduce EVs, which is good. We welcome the competition. How do you view some auto manufacturers’ workforce development crisis today? We are all competing for engineering talent, especially. There is a significant shortage of engineers, and we are not only facing competition from within our industry, but from other industries as well. As technology companies begin to get interested in producing vehicles, the competition is only going to get tougher for those with automotive experience. It is why you are seeing some automakers and our trade groups actively supporting
| Q&A | 9
ENGAGE NOV
16
Greenville Tech Foundation Workforce Development Salute Keynote speaker Carlos Ghosn workforcedevelopmentsalute.org engineering programs and working to encourage students to enter engineering as a career. There is a lot of inhouse and external training going on as well within the industry, to ensure our engineers are staying up to date in their skills. What do you remember most fondly about your time in Greenville with Michelin? The people, the beautiful environment and the great weather were all memorable. But perhaps the most enduring memory was how welcoming Greenville was, how much at home we felt there, despite it being a new and very different place for us. The people of Greenville were friendly and real. We truly enjoyed the experience and learned a lot in those years about what makes the U.S. such a great country.
GROUNDS MAINTENANCE • • • • •
Exterior Building Maintenance Landscaping & Lawn Maintenance Roads & Grounds Maintenance Fertilization & Herbicides Integrated Pest Maintenance
US&S provides full service landscaping and grounds maintenance solutions designed with your satisfaction as our highest priority. Whether it is the one and only project your organization will ever need or if you have more complex long-term facility maintenance requirements, we are here to serve you.
PHOTO BY: MARC BLAZAR, THE ORCHARD INN, SALUDA, NC
Refer to this ad when you call for your FREE estimate! PROVEN PERFORMANCE FROM A FIRM YOU CAN TRUST 2014 Greenville Chamber Small Business of the Year
50 Grand Avenue, Greenville • 864-233-8035 • www.usands.com
23 West North Street, Greenville, SC 29601 864.232.2761 • www.rushwilson.com Open Mon.-Sat. 9:30am - 5:30pm; Wed. 9:30am - 1:00pm
10 | SQUARE FEET |
UBJ
REAL ESTATE DEALS AND DEVELOPMENTS ACROSS THE REGION
SHERRY JACKSON | STAFF
sjackson@communityjournals.com |
|
10.09.2015
@SJackson_CJ
Back to nature
Sanctuary Pointe project at Lake Hartwell hopes to attract outdoor enthusiasts Developers of the proposed 325-acre Sanctuary Pointe project at Lake Hartwell, along the Georgia and South Carolina border at Exit 1 on I-85, announced this week they plan to add a veterans’ wellness center to the project’s already planned SC Great Outdoors Center complex. The SC Great Outdoors Center complex is an initiative of the South Carolina National Heritage Corridor that promotes and protects the state’s natural resources. The 75-acre center is intended to be an element within the Sanctuary Pointe Resort development, and is set to include visitors’ services, environmental education, classrooms and meeting space, a café, indoor and outdoor archery ranges, a lakeside pavilion for flat-water recreation, an amphitheater and an adventure center pavilion with zip-lining, a ropes course and bike rental facilities. The design for Sanctuary Pointe, which has been in the planning stages since 2008, includes a resort hotel and conference center, harbor and resort docks, a limited-service hotel and a golf course in addition to the Great Outdoors Center. “With the Great Outdoors Center coming onboard, we decided to rethink our concept and make sure we’re doing it right,” said Sanctuary Pointe developer Bob Daffin. “Putting together the two concepts [The Outdoors Center and the resort] makes it a unique property where everyone can experience the great outdoors.” HELP FOR VETERANS The SC Great Outdoors Center now plans to add space for WhenLifeSucks.org, a nonprofit organization that serves veterans and their families suffering from trauma. In addition to having its core operations at the center, WhenLifeSucks.org will lead programs utilizing the natural surroundings and outdoor recreation for wellness, healing and renewal. The veterans’ initiative joins 18 other partners who will have facilities or programs at the Great Outdoors Center, including the state departments
To see more renderings and information about Santuary Pointe, visit upstatebusinessjournal.com. of natural resources, agriculture, forestry and transportation along with Clemson University, USA Olympic Archery and the National Parks Service. WhenLifeSucks.org founder Tim Wiles said he noticed a need during his work as the president of Renovo Advantage, a company that offers wellness coaching, resilience and leadership development for corporate clients, individuals and military veterans. “There is no doubt that post-traumatic stress disorder has a negative effect on families in every area of life,” Wiles said. “The emotional and spiritual impact is way more devastating than the numbers show. That is why we must succeed.” Research has shown that outdoor activities promote
wellbeing and decrease tension, anger and depression. Currently, the U.S. has more than 22 million living veterans nationwide from all wars, 2.4 million of whom live in the four states surrounding the Great Outdoor Center site at Sanctuary Pointe. “I was shocked to learn that an average 22 veterans a day commit suicide and more post-9/11 veterans have died by suicide than combat-related fatalities,” said Michelle McCollum, president of the >>
Furman prestige. Affordable evening convenience.
Now offering the Bachelor of Arts in
Information Technology Undergraduate Evening Studies | furman.edu/UES
10.09.2015
|
REAL ESTATE DEALS AND DEVELOPMENTS ACROSS THE REGION
upstatebusinessjournal.com
SHERRY JACKSON | STAFF sjackson@communityjournals.com |
| SQUARE FEET | 11
@SJackson_CJ
>> South Carolina National Heritage and become partners in this endeavor to truly do something meaningful for Corridor. “Post-traumatic stress disorder is a growing epidemic among our veterans.” our veterans that cannot be ignored. McCollum said they would need to Partnering with WhenLifeSucks.org raise approximately $12 million in to provide soldiers and their families capital for the SC Great Outdoors access to these wellness programs and Center, with a target opening date all of the outdoor recreation activities in 2017. offered at the SC Great Outdoor For more information, visit Center is simply the right thing to do scgreatoutdoors.org. and we are honored to have them at the table.” Wiles believes the partnership between The SC Great Outdoors Center will provide: WhenLifeSucks.org and the Great Outdoors Center will become a FLATWATER EXPERIENCES significant resource to • Flatwater kayaking – on-site, guided tours and veterans on a national equipment sales scale. “The Great Out-
CONFIDENCE
OUTDOOR EXPERIENCES
doors Center aligns with our mission and is uniquely positioned to make a measurable difference in the lives of those who have sacrificed so much. This center could quickly grow to be the largest center for veterans’ wellness and renewal in the country.” NEXT STEPS To make the Great Outdoors Center a reality, the Army Corps of Engineers must approve the center as an element of the already approved Sanctuary Pointe master plan, McCollum said. Sanctuary Pointe developers have already embraced the concept and are hopeful the Corps approval will come quickly. “This project is taking place on Corps property that is leased to the South Carolina Department of Parks, Recreation and Tourism and subleased to Sanctuary Pointe Resort,” said McCollum. “Once we receive approval from the Corps, we will immediately begin our capital campaign. We are hopeful that the public and private sectors will be willing to step up
• Paddleboarding – on-site, guided tours,
paddleboard yoga and equipment sales
• Canoes – on-site, guided tours and equipment sales
• Pontoon boat rentals – on-site, day and nighttime experience
• Ski/Wakeboard Rentals – on-site, lessons and equipment sales
• Fishing – on-site, guided expeditions, DNR classes
• Fly fishing – off-site, guided expeditions, DNR classes
• • • •
Boat/sailboat rentals – on-site Houseboat rentals – on-site Jet Ski rentals – on-site and guided expeditions Lake tours – off-site (Lake Keowee & Jocassee)
LAND EXPERIENCES • Mountain biking – off-site (Clemson Forest),
97% CUSTOMER SATISFACTION* Our trusted team and proven processes mean that our clients count on us to do what we say we will do, and more. Our team is dedicated to exceeding customer expectations and enhancing the client experience. Contact us today to learn how our passion for excellence can make a difference to your financial future.
equipment rental
• Eco trekking – on-site, off-site (Clemson Forest), equipment rental
• Archery – on-site, lessons from DNR and National Wild Turkey Federation
• Shooting – on-site, hunter safety from DNR and Wild Turkey Federation
• Lakeside firepit rental – on-site, private parties, special events
• Camping – off-site at local state parks, equipment rental
• Stargazing/astronomy – on-site (PRT, DNR, Clemson, Forestry)
• • • • •
Zip line – on-site, equipment rental Climb to Zip – on-site, equipment rental Rock climbing – on-site Adventure course – on-site Trails – on-site
1116 SOUTH MAIN STREET 8 6 4 . 4 6 7 . 9 8 0 0 | N N P W E A LT H . CO M Nachman Norwood & Parrott is a local wealth management consultancy for top-tier individuals and qualified retirement plan sponsors. Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member FINRA/SIPC. Nachman Norwood & Parrott is a separate entity from WFAFN. *Using averages from 2012 Client Satisfaction Survey results.
12 | SQUARE FEET |
UBJ
REAL ESTATE DEALS AND DEVELOPMENTS ACROSS THE REGION
ASHLEY BONCIMINO | STAFF
|
10.09.2015
aboncimino@communityjournals.com
FRONT ROW: Design Review Board
S Main
Perry Ave
St
DRB approves West End project
Design Review Board votes 3-2 in favor of 272 units on site of Pendleton Street Baptist Church Around 100 residents packed in for this month’s city Design Review Board meeting, where the application for the 272-unit West End Apartment Homes project on South Main Street passed with a vote of 3-2. Nearly a dozen people – many of whom were residents of the South Main Street community – voiced concern over the scale and lack of retail they
believe would encourage walkability, saying they were in favor of the project but not at the cost of development. When asked why retail was excluded, Brian Schick of the Charlotte-based developer Woodfield Investments said retail would cut into the number of total apartment units, and that retail “can also bring troubles.” Schick said, “We are not a retail developer,” telling
the audience some design details were changed based on community input from a neighborhood meeting. “We feel like we’ve made every one of the suggestions… This is all very different from what we initially planned when we brought them the proposal and developed our plan.” The 272-unit West End project is planned on the current site for the Pendleton Street Baptist >>
Inspiring design. Inviting price. 2015 CLA250
Starting at $31,893*
*Starting price includes $393 closing fee.
10.09.2015
|
upstatebusinessjournal.com
>> Church property at 1100 S. Main St., where the church has been a fixture of the community since the 1890s. The church sold three of its 4.5 acres at the site for the project, and retained a small corner at Markley and Rhett Streets where it plans to build a new church. At the meeting, church pastor Marty Price said the church is in “full support of this project. He said, “Frankly, we want to be surrounded by people,” and the apartment project would help them do that. He went on to say that the plan includes “more than sufficient parking,” an issue that has been a rallying cry for residents who say the influx of cars would make streets impossible to use. Yet while some residents focused on parking limitations, the primary issue centered around a lack of retail and the project’s size, according to West End Neighborhood Association representative Susan Skipwith. Other residents voiced the opinion that the project represents a missed opportunity both with employment prospects and building a welcoming
REAL ESTATE DEALS AND DEVELOPMENTS ACROSS THE REGION
entrance corridor to the city. The project’s application passed 3-2, with Design Review Board members Mitch Lehde and Todd Malo voting against approval and members Danielle Fontaine, Carmella Cioffi and Chairman Barry Nocks voting in favor. “No one meets everybody’s needs. No one can make everybody happy, which predicates the story of my life,” said Nocks, who cast the deciding roll-call vote when his colleagues split the decision 2-2. Nocks said that while the project may bring consequences, another developer may have brought more problems or cared less about its impact, making the 272-unit development the best they have to work with. “It could have been commercial, which brings more traffic,” he said. “The question is not is this project perfect… but is this project consistent with the guidelines as generally interpreted?” The committee also reviewed the 16-unit New City Court View townhomes project located at Gibbs and Mayfield streets. While the DRB noted
www.CarltonMB.com
(864) 213-8000 2446 Laurens Road, Greenville, SC 29607
that the project had greatly improved since it was first presented, further changes might be necessary on project railings, garage detailing, the scale of trees and overhead vs. underground utilities. DRB members also reviewed plans for the six-story mixed-use development in the Haynie-Sirrine area at South Church and Wakefield streets.
| SQUARE FEET | 13
The proposal included one floor of retail at the pedestrian level topped with five floors of residential units, two units per floor, with parking underneath the building for residents. The modernist design lacked details that could tie it in with surrounding buildings, with one board member noting that the building looked almost unfinished in design.
Wagner Wealth Management moving HQ to Verdae Area is ‘the next big thing,’ says firm’s president SHERRY JACKSON | STAFF
sjackson@communityjournals.com Greenville-based Wagner Wealth Management is relocating from its Main Street office to a 7,400-squarefoot office building it has purchased at Verdae. The new company headquarters will occupy the second floor of the two-story building located at 3A Legacy Square at Hollingsworth Park, which also currently houses the Verdae YMCA. Dan Wagner, the firm’s president, said that while the company loves downtown Greenville, he believes Verdae “is the next big thing,” offering a central location with ample parking. “Verdae puts us in the middle as Greenville continues to grow,” Wagner said. “In the next five to 10 years Verdae will be the place to be. We’re hoping to be a little ahead of the curve.” Wagner Wealth will initially occupy approximately 3,700 square feet, but will have room to expand to the first floor once the new YMCA at Verdae is completed in the coming years. The company currently leases 1,800 square feet at 130 S. Main St. and plans to move by the end of October. The Verdae office will have stateof-the-art Skyping, teleconference and video in its new conference area, as well as rooftop access offering views of downtown Greenville. “It’s conducive to us doing larger events and
hosting in our own space instead of going to a larger venue,” Wagner said. The new location also has the benefit of easy access to the GHS Swamp Rabbit Trail, Verdae YMCA and Legacy Park, He said. “A lot of
small businesses struggle to have a wellness component to offer, but we really feel like the wellness part is big at Verdae and is something we can offer to our firm.” The new office will accommodate eight advisors and planning, research and compliance staff on site. A new staffer has already been hired who “will play a new role in the new facility,” and with the new space comes plans for new local and national acquisitions, Wagner said. Wagner Wealth also has offices in Asheville, Seneca and Anderson.
JOIN THE GREENVILLE TECH FOUNDATION AS WE HOST A CONVERSATION WITH
CARLOS GHOSN CHAIRMAN & CHIEF EXECUTIVE OFFICER OF THE RENAULT-NISSAN ALLIANCE
11.16.15 6:00pm Cocktail Reception • 7:00pm Dinner TD Convention Center T H IS EVENT WILL F UN D ST UD EN T SC HOL A R S H I P S A N D OTH E R C R I TI C A L N E E DS FO R G R E E N V I LLE T ECHNI CAL CO LLEGE.
FOR MORE INFORMATION VISIT WORKFORCEDEVELOPMENTSALUTE.ORG OR LACEY@CRAWFORDSTRATEGY.COM.
WORKFORCEDEVELOPMENTSALUTE.ORG
10.09.2015
|
upstatebusinessjournal.com
MOVERS, SHAKERS AND DISRUP TORS SHAPING OUR FUTURE
| INNOVATE | 15
A note on convertible notes Don’t dive headfirst into the trendy wave in startup financing By MATT DUNBAR Managing director, Upstate Carolina Angel Network
As with many trends related to entertainment or technology, the market for early-stage capital often experiences a ripple effect carrying prevalent practices from the West Coast eastward. One of those waves that has recently swelled to significant heights in our local market is the prevalence of startups raising their first round of outside capital in the form of convertible notes. While there are certainly appropriate times and situations for using convertible notes, we at UCAN and the SC Angel Network find that startups too often default to convertible notes when they are not the best approach – for the entrepreneurs or the investors. INADEQUATE COMPENSATION By definition, convertible notes, which are a form of debt, are intended to convert into equity – or a portion of ownership in the company – in the future. By structuring the investment as debt rather than equity, the entrepreneurs and investors delay the always-challenging task of determining a price, or valuation, for the company. Instead, the note is structured to convert into equity based on the price of an assumed future round of equity investment, usually at a discount of 10 to 25 percent of the price of the new round. While the discount provides some additional value for the early investors, it rarely provides adequate compensation for the disproportionate risk the note holders took prior to the new round of investment. If the company successfully deploys the capital from the convertible note and gains traction according to its plan, the price of the new round of equity will be such that even with the discount, noteholders pay a much higher price than would have been appropriate for the level of risk at the time of investment. A valuation cap can be added to the terms of the note to mitigate this risk for investors, but in most cases the cap is still higher than the appropriate valuation at the time – and since the cap requires a price negotiation anyway
(which notes are designed to avoid), it usually makes more sense to negotiate a fair price for the equity at the time of the original investment. NO PATHWAY TO CONVERSION A more acute risk in our market – unlike the West Coast where venture capital is relatively abundant – is that the so-called “bridge note” turns into a “pier” with no clear pathway to conversion, which leaves investors and entrepreneurs in a precarious position. For instance, entrepreneurs often fail to recognize the crippling impact an unconverted note can have on the company’s balance sheet. If the note doesn’t convert in a relatively short time frame, the accruing interest can add up to a large number that may severely limit the company’s future prospects. Any new equity investor will adjust down the pre-money valuation offered in order to account for the post-investment impact of the converting principal and interest from the notes. Additionally, if the bridge becomes a pier, the accruing debt can ultimately put investors in position to call their notes, pushing the company into default and ultimately taking over the assets of the company with no recourse for the equity holders like founders and employees. TAX CONSEQUENCES AND MISALIGNMENT Another key issue for investors is the tax consequences of convertible notes. When the accruing interest on the note converts into equity at the time of conversion, investors are required to pay income tax on the interest earned – even though they are not receiving cash from the company. Additionally, the capital gains clock for investors doesn’t start at the time of the convertible note investment, but rather at the time of conversion – so if the company were to be acquired within the first year after conversion, investors would be required to pay ordinary income taxes on their gains, rather than the capital gains rate which would apply in the case of an equity investment held for more than one year. Perhaps the most problematic aspect of using convertible notes is the mis-
alignment it creates between investors and entrepreneurs. When it comes time for the next round of investment, instead of investors and founders being aligned as equity holders seeking the highest reasonable valuation, the investors now have incentive to argue for a lower valuation to improve their equity position upon conversion. Furthermore, by delaying the conversation about valuation, the entrepreneurs miss an opportunity to test the relationship with the investor, and vice versa. If the two parties can’t have a productive conversation about the subjective and challenging topic of valuation, it may signal potential issues the parties will encounter when faced with the inevitable, inherent challenges and conflicts that arise in all startup companies. Finally, many entrepreneurs choose to raise money via convertible notes because they can be issued faster and cheaper than a preferred equity round. While this is true to some extent, the advent of standardized equity round
DEFINED Convertible note: A loan that converts into equity after the company has a bit more operating history under its belt and there is more information available to establish a fair price. Source: Wefunder.com
documents like Series Seed has mitigated these differences significantly. In the end, creating alignment between investors and founders will prove to be much less expensive than the incremental cost of issuing equity instead of a convertible note. Given the challenges associated with convertible notes, we at UCAN and SCAN tend to avoid them (except in cases where there is a high probability of a conversion event or acquisition within just a few months of the note investment), and we encourage entrepreneurs to think twice before defaulting to the trendy wave of convertible notes.
INVITES YOU AND YOUR COMPANY TO…
Tuesday, October 20 • 7:30-9am O’Neal Inc. • 10 Falcon Crest Drive • Greenville, SC 29607
The morning includes your choice of Starbucks coffee, selection of pastries, Starbucks Coffee Masters presentation, preview of the new Rebuild Upstate video. Seating is limited. No charge to attend but you must make a reservation. Reserve your ticket now at http://wakeupwithrebuild.eventbrite.com Thank you to our sponsors: VENTI: Starbucks GRANDE: BRIGHT+ CO Marketing Consortium TALL: BNC Bank, Tom & Ashley Bates Family Fund, MTN, FUSION Audio & Video, South State Bank, O’Neal Inc. MEDIA: Upstate Business Journal, Complete PR
16 | WHO'S WHO: ONES TO WATCH |
WHAT YOU WANT TO KNOW ABOUT PEOPLE YOU NEED TO KNOW
UBJ
|
10.09.2015
Mike Johnson Partner, Nelson Mullins Riley & Scarborough LLP LEIGH SAVAGE Contributor
When Mike Johnson moved to Greenville and joined Nelson Mullins in 2012, his resume stood out thanks to five years working at the Securities and Exchange Commission in Washington, D.C. That led to his current specialization on corporate finance issues such as private equity funds and crowdfunding – topics of particular interest since South Carolina recently adopted crowdfunding rules and the SEC is expected to do the same in the coming months. For Johnson, it’s another way to use his legal expertise to help businesses grow. He serves clients as outside general counsel to their executives and
directors, is a regular speaker at conferences and conventions, and recently joined the board of directors at Elite Crowdfund, an Atlanta company that launched last month. He often attends Upstate events to meet the leaders of emerging companies so he can help them navigate the development stage. “I try to offer a few lessons I’ve learned in 14 years of representing emerging growth companies,” he said. “When it all comes together, it’s a lot of fun.” What brought you to Greenville and to Nelson Mullins? My wife and I moved here in December of 2012 to be closer to her family and for me to join Nelson Mullins. Her parents retired to South Carolina and we wanted to be close to them, and >> Photos by Carol Stewart
10.09.2015
|
upstatebusinessjournal.com
WHAT YOU WANT TO KNOW ABOUT PEOPLE YOU NEED TO KNOW
POINTS OF INTEREST Age: 40 Hometown: Seattle Education: Washington State University; Willamette University College of Law
>>
we felt South Carolina was a great place for us to raise our family. I had worked with Nelson Mullins while at the Securities and Exchange Commission, so I thought it would be a good fit. You spent five years at the SEC. Does that help you in your work now? There are talented securities lawyers in the state, but having been on the inside is something that I offer that is unique, and it’s helpful in a lot of respects. From the time I was in law school, it was something I wanted to do. I knew it would be a great education and an opportunity to meet the real experts in securities law, and I knew I would get to see the kind of transactions that interested me: IPOs, cutting-edge securities developments. The Jumpstart Our Business Startups Act, or JOBS Act, was signed into law in 2012. How has that affected your work and your clients? The JOBS act was signed into law while I was at the SEC, so it was a really interesting time to be there. It proposed rules for crowdfunding and new ways to raise capital. It was designed to facilitate capital raising in the U.S. for smaller businesses. I’ve taken a particular interest in private equity funds and crowdfunding. Tell us more about crowdfunding and how it affects S.C. businesses. There are several types of crowdfunding, but it is generally offering securities over the Internet, in relatively small amounts, to a large number of potential investors. There are several national crowdfunding websites being used by South Carolina businesses, but the current equity crowdfunding websites can generally only raise capital from high net-worth individuals. The SEC is still in the process of adopting rules to open up crowdfunding to everyone. Because of SEC delay, individual states are adopting their own rules, including South Carolina. The South Carolina rule permits South Carolina businesses to raise capital from South Carolina residents, with a $5,000 limit for non-accredited investors. Opening up crowdfunding to non-accredited
Family: Wife Rachel; son due in December; dachshund puppy Hobbies: “Next year I want to improve my tennis game.”
investors is a delicate subject. While most would like to see everyone provided with the opportunity to invest in or support a business, you also want to ensure that more vulnerable investors don’t get in over their heads. It’s a balancing act, and that’s why the SEC has been so slow to finish its rules. The SEC plans to adopt rules in 2015, but we shall see. After living in Seattle and D.C., what was it like to move to Greenville? Greenville offered the opportunity to do sophisticated work similar to what I was doing in those cities, but without some of the headaches like traffic and the outrageous cost of living. There were so many things we liked here, like shows, restaurants and a walkable downtown area. We didn’t feel like we were giving up anything – except the things we wanted to give up. Do you have any mentors who have guided your career? I have several senior partners in the firm that are there for me on a regular basis. Neil Grayson recruited me and has been instrumental in my development. What aspect of your work do you find most fulfilling? It’s exciting to me when a client has a new business opportunity and they need to accomplish something – raising capital or making an acquisition to take that business to the next level. It’s satisfying to me to get to be a part of that and to help get them from point A to point B. It’s a team effort, and it’s exciting when the client is able to bring something to market that the community needs, and the community is better because of it. ONES TO WATCH: The judges could only choose a handful of winners from the more than 130 nominees for Who’s Who in 2015. Over the next few months, UBJ will introduce you to a dozen more whose work is worth keeping an eye on.
| WHO’S WHO: ONES TO WATCH | 17
GENERAL LIABILITY INSURANCE:
YOUR DEFENSE AGAINST LIABILITIES The only way to effectively protect the assets of your business is to carry adequate Commercial General Liability (CGL) Insurance coverage. CGL protects your business from damages caused by bodily injury or property damage for which your business is found to be legally liable.
operations. • Products Liability – Provides coverage for bodily injury and property damage sustained by others as a result of your products. How Much Coverage Does Your Business Need?
What Does CGL Cover?
The amount of coverage that your business needs As a safeguard against VICE PRESIDENT/COO depends on three factors: TOM@HBBINS.COM liability, CGL enables you perceived risk, where you to continue your normal operate your business and the type operations while dealing with real of products you manufacture. or fraudulent claims of negligence or wrongdoing. CGL policies also Perceived Risk – Consider the provide coverage for the cost to amount of risk associated with your defend and settle claims. Here is business operations and functions. more detail into what a typical CGL For instance, if you manufacture policy may cover: heavy machinery, you would generally need more coverage as • Automatic Additional Insured – compared to another organization Coverage is provided for written that manufactures stuffed animals. contracts, agreements and permits. • Premises and Operations Liability • Personal and Advertising Injury – – If you operate in a state that Protects against offenses made by has a reputation for rewarding you or your staff during the course high damages, then you may of business, such as libel, slander, wish to purchase higher limits of disparagement or copyright liability. infringement in advertisements. • Type of Product Manufactured – • Defense Costs – Provides If you manufacture a dangerous coverage for legal expenses for product, you may want to carry liability claims brought against higher limits of liability. your business, regardless of who is at fault. Remember, you can purchase an Umbrella Liability policy to help • Medical Expenses – Provides achieve the desired limit of liability. coverage for medical expenses if someone is injured on your premises or by your products. Herlong Bates Burnett Insurance • Premises and Operations Liability – understands that your business needs Provides coverage for bodily injury to be protected, and we are here to and property damage sustained help! Please contact us today to learn by others on your premises or in more about our risk management and insurance solutions. conjunction with your business TOM BATES
Proudly Representing
28 Global Drive, Ste 102, Greenville 29607 864-527-0424 •
18 | ON THE MOVE |
PLAY-BY-PLAY OF UPSTATE CAREERS
APPOINTED
HIRED
UBJ
HIRED
APPOINTED
|
10.09.2015
HIRED
Clemens Schmitz-Justen
Dan Galt
Keith Gettys
Meliah Bowers Jefferson
Erika DeRoberts
Appointed by the Federal Republic of Germany to serve as the honorary consul of Germany in South Carolina. Schmitz-Justen previously served as president of BMW Manufacturing. In 2009 he started his own strategic and executive consulting business.
Named as senior accountant at OnPoint CFO & Controller Services. Galt has more than 20 years of experience in the accounting industry. He specializes in setting up nonprofit organizations both in South Carolina and federally.
Named to the medical team at Shriners Hospitals for Children – Greenville. Gettys recently completed his fellowship in pediatric orthopaedics and scoliosis at Texas Scottish Rite Hospital in Dallas, and earlier this year was the recipient of the T. Boone Pickens Award for Orthopaedics.
Selected as national spokesperson for the American Heart Association’s “Go Red For Women” movement. Jefferson is an attorney with Wyche, focusing her practice on complex commercial litigation and intellectual property law. She will share her experience of suffering a heart attack at age 33.
Named the project executive and director of developer relations at Coldwell Banker Caine. DeRoberts recently served as branch leader and broker-in-charge for another Upstate real estate company. She began her real estate career in 2005, working for a national builder in onsite sales.
AUTOMOTIVE Milex Complete Auto Care/Mr. Transmission franchisee Dean Bingham was awarded the Franchisee of the Year Award by the International Franchise Association.
COMMUNITY Brad Wyche was recognized by Governor Nikki Haley with The Order of the Palmetto, the state’s highest civilian honor given to those who have made significant contributions to the life and well-being of South Carolina and her people. Wyche retired as executive director of Upstate Forever and will serve as a senior advisor to the organization. The Upstate SC Alliance hired Marc Metcalf as a business recruiter and Aaron Whitehead as marketing coordinator and promoted Emelie Hegarty to communications manager and Patty Wills to operations manager/executive administrator. Metcalf previously served as the employer services manager at Greenville Technical College. Whitehead previously served as a graphic designer at Meyco Products and Stäubli Corporation.
FINANCE SeaCrest Wealth Management hired Richard Matthews and Melissa Liggett. Matthews is a financial advisor with 10 years of experience in retirement distribution and estate
planning. Liggett has focused her career on the insurance and healthcare landscapes.
LEGAL Elliott Davis Decosimo named Howard Houston and Jerry D. Lewis of the firm’s Greenville office as shareholders. Houston specializes in audits, reviews and compilations for construction, higher education, real estate companies and not-for-profit entities. Lewis leads the firm’s Tax Methods and Credit Services Practice, providing strategic solutions to taxpayers in an effort to increase current and future cash flows.
PR/MARKETING Infinity Marketing recently promoted four employees to new positions. Melissa Burkhamer was named a senior media buyer. She oversees the grocery and hospitality teams with media planning and buying and account management. Jessica Howard was named a media coordinator. She assists the health care and media teams with deliverables, scheduling and tracking. Ross McIlwain was named a client services coordinator. He assists the retail team with media plans, DJ endorsements and copywriting. Leslie Olson was named a media buyer. She manages one of the agency’s retail and financial teams with media planning, buying and account coordination.
GREENVILLE NEWS PUBLISHER TO RETIRE Dave Neill, Gannett regional president in the Carolinas and publisher of the Greenville News and The Asheville Citizen-Times, announced his resignation this week. Neill, who previously served as president and publisher of the Naples Daily News in Florida and as president of Portrait Publishing LLC, plans to return to his family in South Florida, the Greenville News reported. His resignation is effective Oct. 17. A search is underway for his replacement, according to the Greenville News. Jackson Marketing, Motorsports & Events hired Steve Bartlett, Brandon Bolen, Shannon Boswell and Nick DeAngelo as event specialists and commercial truck drivers. Bartlett has 20 years of experience in the automotive industry, including sales, service, parts, customer service and motorsports preparation. He also has 15 years of experience driving commercial vehicles for companies. Bolen will focus on transporting for off-road racing clients. He has five years of transport and hauling experience. Boswell has 10 years of experience in the motorsports industry, previously working with companies such as Richard Petty Motorsports, Robby Gordon Motorsports, Champion Tire and Wheel and JHE Productions. DeAngelo will drive a commercial vehicle, manage its maintenance and equipment and provide program support. Sarah Moore received the September 2015 Hales Jewelers Young Leader Award by PULSE for innovative,
initiative-driven leadership impacting the recipient’s work or community environments. Moore is an associate at Complete Public Relations.
REAL ESTATE Serrus Capital Partners hired Gary Gosztonyi as president and COO and Douglas Walker as CFO. Gosztonyi will manage the day-to-day operations of the business. Walker has more than 20 years of experience managing and developing controls specific to the real estate industry.
TOURISM The Spartanburg Convention & Visitors Bureau named Lisa Giaimo and Dave Sundermann to the Spartanburg Tourism Advisory Board. Giaimo is vice president of sales and marketing at OTO Development in Spartanburg. Sundermann is the general manager and director of sales at the Spartanburg Marriott.
«
10.09.2015
|
upstatebusinessjournal.com
THE FRESHEST FACES ON THE BUSINESS LANDSCAPE
Open for business 1. Primrose School of Simpsonville at Five Forks recently opened at 2255 Woodruff Road, Simpsonville. The school is an accredited private preschool. For more information, visit primroseschools.com/ schools/simpsonvillefive-forks or call 864757-1191.
1
2
2. Sylvan Learning recently opened at 150 Tanner Road, Suite E, Greenville. The organization provides personal learning for students in grades K-12. For more information, visit bit.ly/sylvan-learning.
3
3. O’Reilly Auto Parts recently opened at 205 N. Main St., Mauldin. Hours are Monday-Saturday, 7:30 a.m.-9 p.m., and Sunday, 9 a.m.-8 p.m. For more information, visit bit.ly/ oreilly-auto. CONTRIBUTE: Know of a business opening soon? Email information to bjeffers@communityjournals.com.
ÂŤ TRANSLATION SERVICES
Ivannovation LLC hired Lynne Junker and Darren Jansen as project managers. Junker has experience in both translation and project management. She receives translation requests, assigns projects to linguists and oversees the work from outset to delivery. Jansen previously taught English and managed marketing at Agape English Language Institute. In addition to managing translation projects, he is spearheading marketing efforts. CONTRIBUTE: New hires, promotions & award winners may be featured in On the Move. Send information and photos to onthemove@upstatebusinessjournal.com.
| NEW TO THE STREET | 19
20 | FINE PRINT |
BUSINESS BRIEFS YOU CAN’ T MISS
Greenville Chamber chooses local printer for rebranding The Greenville Chamber chose local printer Colorhammer for its rebrand printing. “Choosing Colorhammer was easy for us,” Marion Mann, senior marketing manager at the chamber, said in a release. “We were looking for someone who could intuit where we needed to go and beautifully deliver our business cards, stationery and more with a minimum of effort on our part.” The Chamber this year underwent a major rebranding effort to consolidate its 50 brands and 70 programs. “Colorhammer delivers the best efforts of a consortium of custom printing facilities,” Matt Stocking, Colorhammer principal, said in a release. “Our secret sauce brings into play facilities with a wide range of capabilities, all coordinated by a single point of contact. Our customers have come to expect the extraordinary without the hassle.”
UBJ
|
10.09.2015
Reasons for the overall rate decrease include lower projected coal and natural gas prices and a $19-million decrease in the period true-up of fuel costs from the prior year’s projection These deductions were partially offset by higher projected nuclear fuel prices and higher sales.
The Cliffs completes $525K golf course restorations
Duke Energy lowering rates for customers Duke Energy Carolinas customers will see savings on their electric bills this month due to a decrease in the annual fuel charge. The new fuel charge results in an electric rate decrease for residential customers of 0.9 percent – about $1.06 per month for those using 1,000 kilowatt-hours (kWh) a month. General service customers will see a decrease of 2.4 percent, lighting customers 1.4 percent, and industrial customers 3.5 percent.
Has Been Acquired By
US LBM Holdings, LLC Mt. Vista Capital, Inc. Served as Financial Advisor to GBS Building Supply, Inc.
Alan D. Austin, President 864-423-2347 aaustin@mtvistacapital.com
The Cliffs completed a three-month-long renovation process, investing more than $525,000 to enhance its two oldest golf courses, The Cliffs at Glassy and The Cliffs Valley. “We are excited about the recent enhancement to The Cliffs at Glassy practice facility,” Brian Peeples, The Cliffs director of golf, said in a release. “For agronomic reasons this was a big step to help us manage our traffic, but the fun part is we now have a practice area that better replicates the experience to be had on the course.” The Cliffs at Glassy practice facility underwent a total rebuild, increasing tee space from 18,000 square feet to 31,000 square feet. Glassy’s practice facility also includes a new short game green with surrounding chipping and pitching areas to help players simulate shots on the course. The Cliffs Valley’s new practice facility includes a new short game area, a 3,000-square-foot green and two new green side practice bunker complexes.
NFIB offers tips for businesses damaged by flooding The South Carolina office of the National Federation of Independent Business has released a list of tips for small businesses damaged by the historic flooding across South Carolina: Contact the U.S. Small Business Administration (SBA) and take advantage of the Federal Emergency Management Agency’s (FEMA’s) presence to begin the recovery process. Document any damage to the business with photos and video. Protect property from further damage, but hold off making permanent
10.09.2015
|
upstatebusinessjournal.com
repairs until the claims adjuster can come to the business and assess the damage. Save receipts to document what is spent on repairs. Provide the adjuster with as much information as possible about the items that were damaged – descriptions of the items that were damaged, when they were purchased and what they would cost to repair or replace – to speed up the settlement process. Use social media and the company’s website to keep up with customers, vendors and your employees. NFIB has a comprehensive website to help small businesses prepare for and recover from a disaster. To learn more, visit NFIB.com/disaster.
BUSINESS BRIEFS YOU CAN’ T MISS
| FINE PRINT | 21
PROFESSIONAL CLIENTS DESERVE PROFESSIONAL RESULTS!
GHS honored with two UHC awards UHC, an alliance of the nation’s leading nonprofit academic medical centers and their affiliated hospitals, honored Greenville Health System with the Supply Chain Performance Excellence Award and Supplier Diversity Leadership Award at its annual conference last week. The UHC Supply Chain Performance Excellence Award recognizes high-performing organizations in supply chain management as measured by the Supply Chain Performance Excellence Collaborative Study. The study analyzes data from the UHC Operational Data Base to measure supply utilization at the facility level and across select clinical service areas. The Supplier Diversity Leadership Award honors a UHC member organization for an outstanding supplier diversity program and a demonstrated commitment to supporting the growth of minority-, women-, and veteranowned businesses.
Carolina Alliance, Pinnacle Bank complete merger Carolina Alliance Bank, PBSC Financial Corporation and PBSC’s wholly owned subsidiary, Pinnacle Bank of South Carolina, jointly announced this week that the previously announced merger of the two banks was completed on Oct. 3, 2015, after receiving all shareholder and regulatory approvals. On Monday, Oct. 5, the Pinnacle Bank offices in Greenville, Powdersville and Easley opened as offices of CAB. Under the terms of the merger agreement, PBSC shareholders will receive either $12.00 in cash or 1.0909 shares of CAB common stock, or a combination thereof, for each PBSC share they owned immediately prior to the merger, subject to limitations. Based upon the final CAB stock price, the transaction value was approximately $22.3 million, the company said in a statement. “Customers of both Carolina Alliance and Pinnacle Bank will continue to receive the exceptional customer service they expect from both organizations, with the added benefits of enhanced product and service offerings,” said John Poole, CEO of CAB. CAB began operations in January 2007 and is headquartered in Spartanburg. PBSC was founded in January 2006 and has been headquartered in Greenville. The combined bank will have eight banking offices located in Spartanburg, Greenville, Powdersville, Easley, Anderson and Seneca, S.C., and Asheville and Hendersonville, N.C., as well as loan and lease production offices in Spartanburg and Charlotte, N.C. All of the offices will operate as CAB. The bank will be headquartered in Spartanburg, with senior management personnel operating from Spartanburg, Asheville and Greenville. Carolina Alliance was advised in the transaction by FIG Partners LLC as financial advisor and Nelson Mullins Riley & Scarborough LLP as legal counsel, according to the statement. PBSC was advised by SunTrust Robinson Humphrey as financial advisor and Bryan Cave LLP as legal counsel.
Join Our List of Satisfied Professionals • 110 Lowood Ln. - $690,000 - Chanticleer • 223 E. Earle St. - $565,000 - North Main Area • 12 Buckingham Rd. - $310,000 - Gower Estates • 420 E. Seven Oaks Dr. - $579,000 - Chanticleer • 12 Windsor Dr. - $275,000 - North Main • 10 Coventry Ln. - $240,000 - Dellwood • 110 Tindal Ave. - $725,000 - Alta Vista • 1 Coventry Ln. - $260,000 - Dellwood • 6 Sleepy Orange Cir. - $420,000 - Parkins Mill Area • 12 Phillips Ln. - $331,000 - Augusta Rd Area • 123 Stephens Ln. - $232,500 - Dellwood • 409 McDaniel Ave. - $950,000 - Alta Vista • 30 W. Avondale Dr. - $523,000 - North Main Area • 24 Edge Ct. - $240,000 - North Main Area • 104 Broughton Dr. - $240,000 - North Main Area • 12 W. Mountainview Ave. - $615,000 - North Main Area
D L SO
BUYSELLGVL.COM THOMAS CHEVES STEVE MUSSMAN 864.201.0006
864.316.6569
tcheves@cbcaine.com
smussman@cbcaine.com
JAMIE OUZTS 864.617.5307
jouzts@cbcaine.com
22 | #TRENDING |
INFORMATION YOU WANT TO KNOW
DO YOU HAVE WHAT IT TAKES TO RETIRE? WE HAVE WHAT IT TAKES TO TELL YOU.
UBJ
OVERHEARD @ THEWATERCOOLER Distilled commentary from UBJ readers
RE: BANDWAGON & COLLEGE GAME DAY
|
10.09.2015
BIZ BUZZ The top 5 stories from last week’s issue ranked by shareability score
>> 1,155
1. Greenville startup Bandwagon lands lead angel, $25K commitment
>> 171
2. Chicken Salad Chick opening third Greenville location
>> 118 3. Construction begins on state’s first co-op grocery store
> @BandwagonSusan “Ain’t nothing going to break our stride!” @BandwagonTix @CollegeGameDay @ UpstateBiz @ClemsonFB”
RE: CATERPILLAR DOWNSIZING COULD AFFECT 800 S.C. WORKERS > Craig Kinley “Earth moving equip and tire production slowdown, headed for a overall market little slow down and correction @Arthur Milwee, @ Klugh IV, @Virginia Simpson #drypowder time” > Virginia Simpson “Opportunity often shows up in disguise.” > Craig Kinley “The cycle is not a stranger in disguise, planning for the next one is key, Virginia Simpson.”
>> WEIGH IN @ THE UBJ EXCHANGE Beach Foster, AIF® Managing Director, Investments
Pat Fitzsimmons, AIF® First Vice President, Investments
Matthew Foster, AAMS® Financial Advisor
Karen Alexander Sales Associate
Got something to offer? Get it off your chest. Send posts or blog ideas to eprice@communityjournals. com. OCTOBER 2, 2015
| VOL. 4 ISSUE 40
Visit us at www.fosterfitzsimmons.com to learn more. Or call 864.289.2166. 112 Haywood Road, Greenville, SC 29607 ©2014 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC Raymond James is a registered trademark of Raymond James Financial, Inc.
>> 109 4. Loose Reed seeks to jump-start Upstate brewery district
>> 96 5. Mitsubishi Polyester plans $100M plant expansion
SUBSCRIBE TO OUR EMAILS Follow up on the Upstate’s workweek in minutes. Subscribe to our emails & receive The Inbox – our weekly rundown of the top 10 local biz stories you need to know – as well as breaking news alerts. It’s the best way to stay informed on the go. >> upstatebusinessjournal.com/email
ORDER A PRINT SUBSCRIPTION Style & substance are not mutually exclusive. Our print issues look great in waiting rooms, lobbies and on coffee tables (where they age well, too). Order a year of UBJ in no time, and we’ll deliver every week. >> upstatebusinessjournal.com/ subscribe
DIGITAL FLIPBOOK ARCHIVE >> PROTECTING
HOME FIELD
could be Tech startup Bandwagon fans just the ticket for sports pg. 8
ADVANTAGE
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
UPSTATEBUSINESSJOURNAL.COM
10.09.2015
|
upstatebusinessjournal.com
DATE
INSIDE THE UPSTATE’S NETWORKING AND SOCIAL SCENE
| PLANNER | 23
EVENT INFO
WHERE DO I GO?
HOW DO I GO?
Hispanic Business Forum Discuss the impact of the Latino community in the Upstate
Greenville Chamber 24 Cleveland St., Greenville noon-1:30 p.m.
Cost: $10 Register: bit.ly/hispanic-forum2015
10/15
Networking with a Twist Monthly speed networking event
Commerce Club 55 Beattie Place, Greenville 6:30-7:30 p.m.
Register: 864-232-5600
Friday
Community Shark Tank Five business owners/entrepreneurs interested in competing for a $1,000 business grant and coaching
Online
More info and application: nashalending.org/community-shark-tank
The Economic Benefits of Conservation and Open Space Speaker: Jessica Sargent, Trust for Public Land
USC Upstate University Readiness Center 800 University Way, Spartanburg 3-5 p.m.
Cost: $10 Register: bit.ly/tat-october2015
Manufacturing Leadership Forum: Operational Excellence Kickoff Meeting Bringing together like-minded individuals in support of manufacturing and distribution
Commerce Club 55 Beattie Place, Greenville 7:15 a.m.
Register: 864-232-5600
Tuesday
10/13 Thursday
10/16 Tuesday
10/20 Wednesday
10/21
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?
OCT. 16: THE MANUFACTURING ISSUE Women are thriving in this growing field.
ART DIRECTOR Whitney Fincannon
PRESIDENT/CEO
Mark B. Johnston mjohnston@communityjournals.com
UBJ PUBLISHER
ADVERTISING DESIGN Michael Allen
EXECUTIVE EDITOR
EXECUTIVE ASSISTANT Kristi Fortner
HOW TO CONTRIBUTE STORY IDEAS:
STAFF WRITERS
EVENTS:
ideas@upstatebusinessjournal.com events@upstatebusinessjournal.com
NEW HIRES, PROMOTIONS, AND AWARDS:
MARKETING & ADVERTISING
onthemove@upstatebusinessjournal.com
SALES REPRESENTATIVES
UBJ welcomes expert commentary from business leaders on timely news topics related to their specialties. Guest columns run 700-800 words. Contact Executive Editor Susan Clary Simmons at ssimmons@communityjournals.com to submit an article for consideration.
Nicole Greer, Kristi Jennings, Donna Johnston, Annie Langston, Lindsay Oehman, Emily Yepes
DIRECTOR OF EVENTS & ACCOUNT STRATEGY Kate Madden
1997 Jackson Dawson launches motorsports Division 1993
1990 Jackson Dawson acquires therapon marketing Group and moves to Piedmont office Center on Villa.
>>
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
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
>>
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-prof 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 lients 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 nit inVolVeMent nitY in olV inV olVe VeMent & 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
OCT. 30: QUARTERLY CRE ISSUE The state of commercial real estate in the Upstate.
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
November 1, 2013 Upstate bUsiness joUrnal 21
20 Upstate bUsiness joUrnal November 1, 2013
AS SEEN IN
NOVEMBER 1, 2013
Anita Harley, Jane Rogers
Jerry Salley jsalley@communityjournals.com Ashley Boncimino, Sherry Jackson, Benjamin Jeffers, Cindy Landrum, April A. Morris
jackson Marketing Group’s 25 Years 1988 Jackson Dawson opens in Greenville at Downtown Airport
1988
Holly Hardin
CLIENT SERVICES
MANAGING EDITOR
UBJ milestone
OPERATIONS
Ryan L. Johnston rjohnston@communityjournals.com Susan Clary Simmons ssimmons@communityjournals.com
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
UBJ milestone
DIGITAL TEAM Emily Price, Danielle Car
UP NEXT
Order a reprint today, PDFs available for $25. For more information, contact Anita Harley 864.679.1205 or aharley@communityjournals.com
DIGITAL AND SOCIAL MEDIA
NOV. 20: THE FOODIE ISSUE Supper’s ready – and so are opportunities.
TWITTER: Follow us @UpstateBiz FACEBOOK: TheUpstateBusinessJournal LINKEDIN: Upstate Business Journal
publishers of
Got any thoughts? Care to contribute? Let us know at ideas@ upstatebusinessjournal.com.
Copyright ©2015 BY COMMUNITY JOURNALS LLC. All rights reserved. Upstate Business Journal is published weekly by Community Journals LLC. 581 Perry Ave., Greenville, South Carolina, 29611. Upstate Business Journal is a free publication. Annual subscriptions (52 issues) can be purchased for $50. Postmaster: Send address changes to Upstate Business, P581 Perry Ave., Greenville, South Carolina, 29611. Printed in the USA.
Circulation Audit by 581 Perry Avenue, Greenville, SC 29611 | 864-679-1200 | communityjournals.com UBJ: For subscriptions, call 864-679-1240 | UpstateBusinessJournal.com