INSIDE THIS ISSUE // BMW’S $600 MILLION STRATEGY • ADA COMPLIANCE PITFALLS
JUNE 30, 2017 | VOL. 6 ISSUE 26
The
Legal Issue
OGLETREE DEAKINS FORTY YEARS OF LABOR
THE FIRM HAS GROWN FROM ITS GREENVILLE ROOTS TO A NATIONWIDE PROMINENCE IN LABOR AND EMPLOYMENT LAW
Lewis Smoak, founding partner, Ogletree, Deakins, Nash, Smoak & Stewart Photo by Will Crooks
THE RUNDOWN |
TOP-OF-MIND AND IN THE MIX THIS WEEK
VOLUME 6, ISSUE 26 Featured this issue: What’s the future for Lockheed in Greenville?........................................................3 BMW’s $600M anniversary gift to Spartanburg....................................................4 ADA compliance still tricky for some businesses.................................................12
BMW Chairman Harald Krueger joins employees on stage during a 25th anniversary celebration for the automaker’s Spartanburg County plant. BMW’s redesigned X3 model, which will be built in Spartanburg, was unveiled at the event. Photo provided.
WORTH REPEATING “The F-16’s only real hope for a sustainable line is an India order, and that means building in India.” Page 3
“To those who fear globalization, embrace it, because it’s not going away.” Page 4
“We’re focusing on promoting to athletes rather than as a hangover cure.” Page16
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VERBATIM
On cycling around Greenville “The infrastructural changes here, over the past decade, have encouraged local and visiting cyclists alike to seek this green city. From the burgeoning biker to the training pro, everyone can find an avenue to take.” Paste Magazine, in a feature praising Greenville as an active travel destination.
INFORMATION YOU WANT TO KNOW
| NEWS
AEROSPACE
Analyst: India, not Greenville, to fill biggest future F-16 order RUDOLPH BELL | STAFF
rbell@communityjournals.com Lockheed Martin Corp. says its plan to make the F-16 in India does not change its previously announced plan to make the fighter jet in Greenville. The disclosure of the India plan, however, does show that Greenville isn’t the only place where the defense contractor plans to fill any future orders for the 40-year-old jet. It also shows that Greenville won’t be filling the biggest potential future order and the only real hope of keeping the F-16 program alive, according to one aerospace analyst. Lockheed disclosed the India plan last Monday at the Paris Air Show as part of its bid to capture an expected contract from the Indian government that reportedly would involve the purchase of up to 200 single-engine fighter jets. Lockheed said it would make the latest generation of the F-16 in India — assuming it wins the contract — as part of a partnership with the aerospace and defense arm of Tata Group, the big Indian conglomerate. That Tata subsidiary, Hyderabad-based Tata Advanced Systems Ltd., already supplies parts for Lockheed Martin’s C-130J military transport aircraft and for helicopters made by Lockheed subsidiary Sikorsky Aircraft. Lockheed spokesman John Losinger told UBJ that the India plan doesn’t change what the company previously said about filling future F-16 orders from the 16-hangar facility in southern Greenville County, where it has refurbished military aircraft since 1984. Losinger said Lockheed is pursuing F-16 sales to Bahrain, Indonesia, and other foreign countries, and the Greenville facility would perform final assembly for those orders if they come to be. The Trump administration has reportedly informally notified Congress that it approves of Lockheed selling up to 19 F-16s to Bahrain, but a formal
public notice has not yet been issued. Losinger said Lockheed hopes to nail down the sale to Bahrain by the end of this year or early next year. He said the potential F-16 sale to Indonesia remains a subject of talks between the Asian country and the United States. He declined to give a number of aircraft on the table in that potential deal. Losinger also said the Greenville facility would assemble some of the initial aircraft sold to India if Lockheed wins that contract. As it waits to finalize future F-16 business, Lockheed expects to fill the last remaining order for the fighter — a sale to Iraq — by the end of the year at its factory in Fort Worth, Texas. After that, the company will begin an 18-month process to move F-16 assembly to Greenville, but only once it nails down another order, Losinger said. He said Lockheed agreed to make the F-16 in India because that is widely expected to be a requirement of any sale of the jet to the Indian government. The letter of intent that Lockheed unveiled in Paris also provides for India to export Indian-made F-16s, which means India could be competing with Greenville for any work to upgrade about 3,200 F-16s currently in use by various countries, Losinger said. Richard Aboulafia, an analyst with Teal Group, an aerospace consultancy in Fairfax, Va., said the F-16 is “on its last legs” and he doesn’t expect Greenville to make many of the supersonic jets. “The F-16’s only real hope for a sustainable line is an India order, and that means building in India,” Aboulafia said in an email to UBJ from Paris. Lockheed’s deal to make F-16s in India with Tata was “an inevitable agreement, and Greenville was always going to be an interim site, at best,” Aboulafia said. “Perhaps the Bahrain planes will be built [in Greenville], and conceivably a few others.”
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This week, BMW announced that its latest X3 sports activity vehicle model would be made at its Spartanburg plant. Photo provided
MANUFACTURING
FOREVER CHANGED
On June 23, 1992, BMW announced a plan to build its first manufacturing plant outside of Germany. The location: Spartanburg County. Since then, BMW has transformed both the Upstate and South Carolina. TREVOR ANDERSON | STAFF
tanderson@communityjournals.com Carl Flesher Jr. recalls the moment he realized BMW changed South Carolina. Flesher was the first employee hired for the automaker’s first manufacturing plant outside its native Germany, which was announced 25 years ago on June 23, 1992. Later that year, he was riding in a caravan with company, state, and local officials whose terminus was a groundbreaking ceremony on what was then a 1,150acre greenfield site in western Spartanburg County. “I was overwhelmed and humbled by the turnout of people along the streets and roads en route to the groundbreaking,” said Flesher, who retired as the plant’s vice president of corporate communications 4
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in 2005. “Cars were lined up. Schools and businesses closed. People were waving American and German flags. I realized then what the expectations were and the responsibility on my shoulders. I asked a very nice city councilwoman from Spartanburg what she thought about it all. She turned to me and said, ‘Carl, if we can build BMWs, we can do anything.’”
A $150 MILLION COURTSHIP BMW’s announcement was a big win for a state that was literally in the midst of seeing its textile manufacturing industry evaporate during the late 1980s and early ’90s. About 60,000 textile jobs were eventually lost to countries like China, Mexico, and India. Mills that
supplied South Carolina communities with economic lifeblood, pride, culture, and other benefits shuttered one by one. After hearing about BMW’s interest in building cars in North America in the late 1980s, then-Gov. Carroll Campbell cold-called the automaker, which considered about 250 sites worldwide for the plant. BMW had narrowed its choices to Spartanburg County and Omaha, Neb. Officials in both states launched massive efforts to court the automaker. Campbell and other legislators negotiated an incentives package worth about $150 million. Critics argued that the state was giving away too much. The Palmetto State eventually won out. The facility, known now as BMW Manufacturing Co., was announced as a $600 million investment that
>>
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“Just like our engines are the heart of our BMWs, our associates are the heart of this plant. They are the reason that Plant Spartanburg has been successful.” Sky Foster, manager of corporate communications for BMW Manufacturing Co.
>> promised to create almost 2,000 jobs. BMW initially hoped to attract nine suppliers to South Carolina. “BMW changed the psychology of the state of South Carolina,” said S.C. Secretary of Commerce Bobby Hitt, who was part of the team that put together incentives for the automaker and was later hired as employee No. 34 at the plant. “That was a time of great deflation in the state. Hats off to Gov. Campbell. He was singularly focused on recruiting companies. … Here we are now and we have an automotive sector that supports about 66,000 jobs.”
LARGEST IN THE WORLD An economic development study by the University of South Carolina’s Darla Moore School of Business released in 2014 said that nearly 31,000 jobs in the state were supported by the production of BMW vehicles. BMW’s total capital investment in the Spartanburg plant, which is the production center of its X3, X4, X5, and X6 Sports Activity Vehicles, is nearly $8 billion to date. The facility employs almost 9,000 people, a majority of who are from South Carolina. In terms of production volume, the Spartanburg plant is the automaker’s largest plant in the world, having as sembled a record 411,000 vehicles in
2016. The plant is on pace to break that record in 2017. BMW Manufacturing Co. is nearing the completion of another $1 billion expansion of the plant to expand production and add capacity for a new model: the X7, which should hit dealerships in late 2018. The plant encompasses more than 5 million square feet, and its average daily production has grown to 1,400 vehicles. It is poised to produce its 4 millionth vehicle this year. In February, the plant announced it remained the nation’s largest automotive exporter in 2016. The automaker exported 287,700 X models during the year. About 86 percent were exported through the Port of Charleston. The plant’s exports were valued at $9.53 billion, according to the U.S. Department of Commerce, confirming it as the country’s leading car exporter in terms of value for a third consecutive year. BMW Manufacturing Co. has also garnered several J.D. Power quality awards and produces about half of its own energy on site via the combustion of methane gas siphoned from the Palmetto Landfill. Hitt said South Carolina today has 400 automotive suppliers. BMW’s success has led to other announcements, including Boeing, Daimler AG, Volvo, Toray, and others.
| NEWS
BMW ANNOUNCES $600M INVESTMENT, 1,000 NEW JOBS German automaker BMW Group on Monday, June 26, said it plans to invest $600 million to expand its Spartanburg County plant and create 1,000 jobs during the next five years. BMW’s Chairman Harald Krueger made the announcement during the company’s Start of Communications event, or unveiling, of its next-generation X3 at BMW Manufacturing Co. near Greer. Krueger said the company would invest $200 million solely for training and further education for associates at the plant. The company will also roll out a nationwide training program, he said. “We will keep investing in our people and our business in the United States,” Krueger said. “This underscores our enduring commitment to the people of this great nation and this great state.” The additional jobs will bring the plant’s employment to almost 10,000 people by 2021. According to a 2014 economic impact study by the University of South Carolina’s Darla Moore School of Business, each job created in the plant results in four jobs created elsewhere in the state. That means the jobs announced Monday could result in 4,000 or more jobs for the Palmetto State. “It doesn’t get any better than this,” said S.C. Gov. Henry McMaster. “I cannot be more proud of this company; more proud of the people of South Carolina; and more proud of the accomplishments and progress that these people and this company have made than I am right now.” “Let it be said there are more cars made by the BMW family in South Carolina than anywhere else in the world,” said U.S. Sen. Lindsey Graham, R-S.C. “God bless BMW.” The crowd applauded Graham, who urged U.S. President Donald Trump to negotiate a tariff and keep trade flowing between this country and Europe. “We need more trade; not less,” Graham said. “To those who fear globalization, embrace it, because it’s not going away.” Monday’s event drew a large crowd of BMW employees, state and local officials, media, and plant associates. Krueger’s message hammered home the company’s commitment to its “people, performance, passion, and pride.” In keeping with tradition, BMW Manufacturing Co. associate Alan Brodin, a graduate of the BMW Scholars Program who was celebrating his first official day on the job, drove a new phytonic blue X3 onto the stage. The company said it has sold more than 1.5 million X3s worldwide since the model launched in 2003. Its third generation of the model will be available in a M40i version powered by 3.0-liter, six-cylinder inline engine with a horsepower of about 355, as well as an xDrive30i with a 2.0-liter four-cylinder with 248 horsepower. All models will come standard with an eight-speed Steptronic Sport transmission with shift paddles and BMW’s xDrive intelligent all-wheel drive. The models should hit dealerships in late October. —Trevor Anderson
BMW continued on PAGE 6
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Fireworks marked the grand opening of BMW’s Spartanburg plant. Photo provided. BMW continued from PAGE 5
‘FROM A LOSER’S LIMP TO A WINNER’S GAIT’
A PIPELINE OF TALENT
“BMW raised the flags of Spartanburg County and South Carolina for all of the world to see,” said Spartanburg County Councilman David Britt, who was first elected in 1991 and remembers BMW’s announcement. “Their decision was transformative. All you have to do is ask yourself, ‘Where would we be without BMW?’ I think the answer is pretty clear.” In 1992, prior to BMW’s original announcement, Spartanburg County boasted only one international manufacturer outside of the textile industry: Greenville-based Michelin North America, Britt said. He said the county lost 25,000 jobs to the decline of textiles. Britt said Michelin’s success in the Upstate helped prove to BMW that the region and state could supply many of the ingredients that would help the plant succeed, including a skilled workforce and a strong technical college system. He said 125 international companies, including 38 German firms, have set up operations in Spartanburg since BMW’s announcement. And since 1992, the county has netted $16 billion in investment and 45,000 jobs. “Ask yourself, who else could come in and have that kind of impact?” Britt said. “Lock, stock, and barrel, I’d take BMW over any other company in the world. They are the gift that keeps on giving; they always under-promise and over-deliver. We went from having a loser’s limp to a winner’s gait overnight.”
Britt credited BMW for setting the bar higher for corporate citizenship in the community, and for raising the bar for education. “It’s like oxygen,” he said. “You can’t put it into words, but you know when you don’t have it. BMW is like oxygen for South Carolina and Spartanburg County.” Hitt said BMW helped lay the “groundwork” for and continued to shape state and local efforts to create economic development and opportunities. One such effort was the creation of Clemson University’s International Center for Automotive Research (ICAR) in Greenville in 2003. Hitt said more than 18,000 people across the state have gone through apprenticeship programs offered by companies in partnership with the Apprenticeship Carolina, a division of the S.C. Technical College System. BMW has been a driving force behind South Carolina’s push to create a pipeline of talent. “We’ve built the pipeline,” Hitt said. “We need it because we are now in this period of change at BMW where we don’t have the luxury of starting from scratch. [Employees] need to be able to hit the ground running.” Another vital piece of the puzzle, Hitt said, is providing logistic systems that enable companies like BMW, which ships 70 percent of the cars it makes to 140 markets worldwide, to get their parts and products to where they need >> to be.
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| NEWS
S.C. Gov. Carroll Campbell and BMW Chairman Eberhard von Kuenheim break ground in 1992 at the future home of BMW’s Spartanburg County facility. Photo provided.
>> On Wednesday, June 21, the S.C. Ports Authority Board adopted a 2018 fiscal year financial plan that includes $262.3 million in capital expenditures, the largest capital plan in the authority’s history. The plan, which is a $14.3 million increase compared with 2017, provides funding for upgrades geared to help SCPA meet volume increases expected at the Port of Charleston and inland port in Spartanburg County. “We need a very sophisticated system,” Hitt said. “We’re in constant communications with our companies to make sure we’re meeting their logistics needs and staying ahead of the curve.”
RESUMES STACKED TO THE CEILING With all of the changes in the state brought on by BMW’s announcement 25 years ago, there are still a few people who remember the plant’s early days that preceded its opening in 1994. Sky Foster, manager of corporate communications for BMW Manufacturing Co., was hired as associate No. 5 for the plant in March 1993. Foster started working in human resources as the manager of recruiting. Her job was to hire the plant’s workforce, which she said was simple, but very challenging. “In the beginning, we talked about investing in technologies,” she said. “My focus was investing in the people, because I knew it was the people who
would make the difference.” Foster said she had to hire 100 people by January 1994. The plant’s original startup crew consisted of about 50 people, who first began working out of the Montgomery Building in downtown Spartanburg. Foster said she didn’t “comprehend” the interest people in the area had in BMW until she walked into a room and saw resumes stacked from the floor to the ceiling. Foster drove the first vehicle produced at the plant — a white 318i — onstage during the facility’s opening ceremony on Nov. 15, 1994. “Just like our engines are the heart of our BMWs, our associates are the heart of this plant,” she said. “They are the reason that Plant Spartanburg has been successful.” Brett Suits of Spartanburg was hired as employee No. 50 at the plant. Today he serves as a manager of the facility’s painted body quality manager. Suits, a mechanical engineer, left a career at Hoechst Celanese in Spartanburg, now the Auriga Polymers plant, to work for the automaker. “I believed God wanted me to be here,” said Suits, 56. “I always had a desire to be a part of building something from the ground up.”
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THE NEXT GENERATION GRABS THE KEYS Suits said he remembers visiting the plant site in the early days when the employees were training at a nearby BMW continued on PAGE 8
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BMW continued from PAGE 7
facility off Brockman McClimon Road. “I remember thinking, ‘We’ll never be able to fill this up,’” he said. “Now we’re almost out of room.” Suits remembered that Honda executives were hired and brought in to lead the plant’s management team through the start-up process. “We didn’t have a clue,” he said. “There was a lot of anticipation. When the first cars came down the line, there was a lot of pride there.” Suits and his family moved to Germany in 1995, while he worked on the launch of the X5. They returned to Spartanburg in July 1998. Suits has felt the mentality of the plant shift throughout the years. “I struggled for a few years because this place is constant change,” he said. “I’ve learned that change is good because it means continuous improvement and maturation. When we started out, we wanted to be ‘as good as.’ We achieved that and then it became ‘be better than.’ Now it’s the ‘best of.’ It has taken 25 years to get there. We have to learn how to achieve excellence. It’s the pursuit of perfection. Everything we do has to be perfect.” Suits said plant leaders are focused on handing over the keys to a new generation of employees, like his son Jacob, 25, who graduated with a mechanical engineering degree from Clemson University and was hired as a metrology systems planner at the plant.
Brett Suits (right) was hired as employee No. 50 at BMW’s Spartanburg plant. His son Jacob (left) started work at BMW in 2015. Photo by Will Crooks
“This generation coming up now will lead this plant,” the elder Suits said. “They are so smart, so talented. I have to make sure I’m handing that over; passing on what’s important. I feel good about the community and BMW. I think we have a bright future.”
“There is definitely a sense of pride knowing the impact that the first employees here had on the success and culture of this company,” Jacob Suits said. “To know that my dad was a part of it is very special.”
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MILESTONE |
A TRIBUTE TO OUR LONG-LASTING ENTERPRISES Lewis Smoak, founding partner, Ogletree, Deakins, Nash, Smoak & Stewart
40 YEARS IN, OGLETREE DEAKINS IS NO. 2 IN ITS FIELD WORDS BY RUDOLPH BELL PHOTO BY WILL CROOKS
What is now the nation’s second-largest labor and employment law firm representing management began on Valentine’s Day, 1977, with 11 lawyers in Greenville and five in Atlanta. Today, Ogletree, Deakins, Nash, Smoak & Stewart employs more than 800 attorneys in 52 offices across the country and in five foreign countries. The firm, which reported gross revenue of $427 million last year, is led from Raleigh, N.C., where its fifth managing shareholder, Matt Keen, is located. Yet its roots remain firmly planted in Greenville, home to more of its employees than any other city, partners said. Thirty-nine lawyers work in the firm’s legal office in the Ogletree Building along North Main Street, 10
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directly across from the Hyatt Regency Greenville, assisted by 31 other employees. Another 179 employees work at the firm’s administrative headquarters along International Drive, including the chief financial officer, chief operating officer, director of technology, and director of human resources. Two of Ogletree Deakins’ founding partners — Lewis Smoak of Greenville and Homer Deakins of Atlanta — told UBJ they never expected the firm to get so big. “It just happened,” Deakins said. “We had satisfied clients, and our clients were growing, and we grew with them.” Much of the firm’s early work was advising company executives on labor issues, including how to keep manufacturing plants union-free.
The firm’s relationship with clients such as General Electric, International Paper, and BorgWarner started with work for their South Carolina operations and grew from there. Over time, Ogletree Deakins took on more work related to employment, such as workplace safety, executive compensation, non-compete agreements, and business-related immigration. Employment-related litigation forced the firm to grow, Smoak and Deakins said, because that kind of practice requires local counsel for trying cases in the locales in which they originate. As the firm added offices around the country, it picked up new clients from the lawyers it hired to man those offices. Deakins cited the firm’s culture of
collegiality as a key reason for its growth. A big problem at some firms, he said, is that lawyers refuse to share work. That’s not true at Ogletree Deakins, where half of the work at each office, on average, came from another office, he said. “Our lawyers trust each other and have a collegial relationship,” Deakins said. “That’s probably the most significant part of the success of the firm.”
MILESTONES
An early milestone in the firm’s history came in 1980, when it opened an office in Washington, D.C., led by the late Peter Nash, a former general counsel of the National Labor Relations Board. Ogletree Deakins expanded beyond the Southeast in 1996, when it >>
A TRIBUTE TO OUR LONG-LASTING ENTERPRISES
| MILESTONE
1977
The firm is launched on Valentine’s Day with 11 lawyers in Greenville and five in Atlanta
Ogletree lawyers in black tie at the firm’s 30th anniversary in 2007. Seated (L-R): Baker Wyche, Jimmie Stewart, Homer Deakins, Gray Geddie, Fred Suggs Standing (L-R): Eric Schweitzer, Lewis Smoak, Bob King, John Burgin
The late Jimmie Stewart, founding shareholder in the early 1970s.
An office in Washington, D.C., is opened, led by Peter Nash, a former general counsel of the National Labor Relations Board.
1989
Ogletree Deakins represents Nissan as the United Automobile Workers tries, and fails, to organize workers at the automaker’s plant in Smyrna, Tenn.
>>
opened an office in Houston in support of big construction companies such as Bechtel Group. Another watershed moment occurred in 2004, when the firm merged with Greenville-based Haynsworth Baldwin Johnson & Greaves, another labor and employment firm. Ogletree Deakins opened the first of five overseas offices in Berlin in 2012.
EYEWITNESSES TO HISTORY
Over the years, Ogletree Deakins lawyers have been eyewitnesses to notable chapters in U.S. business history. For example, the firm advised Miami-based Eastern Airlines —
Ribbon-cutting for the Ogletree Building in downtown Greenville, fall 1990. At left are then-U.S. Sen. Fritz Hollings of Charleston and then-U.S. Rep. Liz Patterson of Spartanburg.
formerly one of the country’s biggest airlines — as it clashed with labor unions in the 1980s. That labor conflict was a key reason for Eastern’s ultimate demise in 1991. Smoak said the airline’s former management has told Ogletree Deakins that they wished they had followed the firm’s advice about negotiating with the pilots’ union. Ogletree Deakins lawyers were also a witness to historic efforts by organized labor to penetrate the network of foreign-owned automotive plants in the South. The firm advised Nissan as the United Automobile Workers tried, and failed, to organize the Japanese automaker’s plant in Smyrna, Tenn., in 1989 and again in 2001.
1996
The firm expands west, opening an office in Houston.
2012
TOP 100 FIRM
As the firm turned 40 this year, it found itself listed as the nation’s 77th largest law firm, as measured by gross revenue, in a ranking by The American Lawyer magazine. The same ranking shows Ogletree Deakins as the nation’s second-largest labor and employment law firm, behind San Francisco-based Littler Mendelson. Ogletree Deakins reported gross revenue of $427 million in 2016, a 7 percent increase over 2015.
The first overseas office is opened in Berlin.
2017
In the year it turns 40, Ogletree Deakins has more than 800 lawyers in 52 offices in 29 states, the District of Columbia, the U.S. Virgin Islands, and five foreign countries. It is ranked by The American Lawyer magazine as the nation’s second-largest labor and employment law firm, behind San Francisco-based Littler Mendelson. 6.30.2017
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40 Years of Ogletree Deakins
Lewis Smoak, Knox Haynsworth, Homer Deakins, and Jimmie Stewart outside the Ogletree Building in 2004, when Ogletree Deakins merged with Haynsworth Baldwin Johnson & Greaves.
From Greenville to the world
1980
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ADA COMPLIANCE |
THE LEGAL ISSUE
WHAT BUSINESSES DON’T KNOW ABOUT ADA RULES COULD HURT THEM WORDS BY MELINDA YOUNG PHOTO BY WILL CROOKS
Sandy Hanebrink is executive director of Touch the Future, an Anderson nonprofit that provides ADA training, consulting, and assistive technology for people with disabilities.
When Americans with Disabilities Act (ADA) experts planned a training session last year in Greenville for local governments and contractors, ADA trainer Sandy Hanebrink of Anderson booked space at Aloft Greenville Downtown — a brand-new hotel at the time. Soon after Hanebrink arrived she discovered the new city garage that led to the hotel was inaccessible for people in a wheelchair. The garage’s height was too short: Instead of 8 feet, 2 inches, it was 7 feet tall. Some vans with wheelchair lifts need the extra foot of height. Also, Hanebrink, who is a quadriplegic, could not get from the parking space into the hotel because it was too steep. Inside the hotel, she found other ADA problems, as well. “We thought that because it was brand-new, surely it would have been compliant. But it wasn’t,” says Hanebrink, executive director of Touch the Future, an Anderson nonprofit that provides ADA training, consulting, and assistive technology for people with disabilities. Hanebrink’s experience illustrates how tricky it can be for businesses to remain compliant with 12
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ADA, which is a civil rights law passed in 1990. Sometimes a business owner can renovate or construct a new building, designed by architects and built by contractors — all of whom are presumably knowledgeable about the law. The building could be inspected by coding officials and open for business, and all seems fine until someone calls or files a formal ADA complaint or lawsuit. “All of a sudden, you could find it’s not compliant, three years from now when someone sues over an ADA violation that the architect signed off on and the code people passed. There are huge pitfalls in the system,” says Mike Teachey, lead facilitator of Greenville CAN, which advocates for people with disabilities. It’s up to companies to make sure their buildings are ADA-compliant. The smartest thing they could do is visit ada.gov to educate themselves about the law, Teachey says. “And don’t just assume that because someone signed off on it that everything is okay.” Local building code officials inspect buildings for code compliance, not for compliance with federal laws like the ADA, which is enforced by the
U.S. Department of Justice, says Mark Teal, risk manager and ADA coordinator for the City of Greenville. “One thing that has improved dramatically over the years is that building codes are 98 to 99 percent parallel to what ADA requirements are. So when buildings are inspected for building and code compliance, they are inspected for codes that mirror ADA requirements,” Teal says. It’s not foolproof, as the city garage mistake demonstrates. When Hanebrink contacted Aloft and the city over the garage’s accessibility problems, both parties sought to make corrections. Although the garage was designed to be ADA compliant, some additional work was done to meet specifications, Teal says. Aloft Downtown Greenville also quickly responded to Hanebrink’s feedback, including her observation that the hotel’s bar had no area low enough for someone in a wheelchair. According to McKibbon Hospitality, which owns Aloft, the company takes ADA compliance very seriously. >>
THE LEGAL ISSUE
“Businesses have an obligation to provide equal access to their goods and services to people with disabilities, and it’s not optional.” ADA trainer Sandy Hanebrink
>> “Unfortunately, there were some unforeseen compliance issues at Aloft Greenville Downtown that were identified right after the opening. Our team reacted quickly and corrected the discrepancies immediately,” said McKibbon Hospitality Vice President of Development Erik Rowen, who responded to questions via email. The hotel’s ADA-compliant updates included adding a table at the end of the bar for wheelchair service. Typically, ADA issues are resolved the way
Hanebrink handled it. Someone knowledgeable about the ADA lets the business owner or city know of a problem, and the business or city official can fix it. Some people might file a formal complaint with the federal ADA office, and still others might file a lawsuit, but the latter is rare, Teal says. “I have heard of no local lawsuits about ADA in the city in the last couple of years,” he says. Business owners who are renovating old facilities or building new ones need to think about the longterm consequences of being non-ADA compliant,
| ADA COMPLIANCE
Hanebrink and Teachey say. These include both risk of a lawsuit and the loss of business. And it’s the right thing to do, Hanebrink says. “Businesses have an obligation to provide equal access to their goods and services to people with disabilities, and it’s not optional,” Hanebrink says. “I would think you’d want to include everyone in your community.” There are tax credits for businesses to make properties accessible. And the cost of being compliant is less than the cost of handling an ADA lawsuit, she says. While lawsuits are not common, they might increase as the ADA approaches its 30th anniversary. Many young adults are what Hanebrink calls the “ADA generation,” who have grown up with the law and who expect buildings and companies to be ADA-compliant. If they feel something is wrong, they’ll file a federal complaint or sue, she says. “All of these ADA issues are ticking time bombs that you don’t know when or where they’ll go off,” Teachey says. Plus, companies that increase accessibility benefit by expanding their customer base. “If you don’t make it accessible, there are customers who will never go into your business,” Teachey says.
6.30.2017
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FROM THE EXPERTS |
THE LEGAL ISSUE
Be frugal, not cheap, when selling your company By KEVIN HENDRICKS Founder, entrepreneurs law group
to the seller, they’ll likely never see anywhere near that price. Here are a few things to look out for:
Contingent payment of purchase price When selling their businesses, many owners focus on the purchase price (which is obviously important), and to save some money “play lawyer” when it comes to reviewing the other provisions of the proposed deal. These owners sign a letter of intent under the assumption that they’ll later ask a lawyer to “paper up” the deal they’ve already struck. But business owners can get themselves in trouble signing a letter of intent without getting advice from an experienced lawyer. Although the deal terms of a letter of intent are typically not legally binding, once a business owner agrees to one, it can be difficult to change the terms. At best, renegotiating a deal will create tension and bad will. At worst, a buyer may walk away, thinking that the seller is unpredictable. There’s a lot of truth to an old adage in negotiations: “I’ll let you name the price, as long as I get to name the terms.” An experienced lawyer can structure any deal to include the purchase price the seller wants, but add so many contingencies and shift so much risk
Also referred to as an “earn-out,” this structure increases the purchase price based on the success of the business after the closing, but it is often wrongly used when a buyer and seller can’t agree on a price. Often, they are just setting themselves up for a dispute after the closing. There are two situations where an earn-out can make sense for both parties by giving a seller the opportunity to justify a higher price and giving the buyer some protection. One is when the selling owner is critical to the success of the business in the short term, such as when a buyer is entering a new geographic market. In this case, the seller has influence over the operations of the business and is motivated to see it succeed. Another is when a seller has recently made significant investments in the business (for example, expansion of manufacturing capacity or entering into a new market) and there has not been sufficient time for these investments to be reflected in additional revenues.
Holdbacks A “holdback” is when a buyer doesn’t pay a seller the entire purchase price at closing, commonly 5-10 percent of the purchase price. Holdbacks are usually paid to the seller within 12 to 24 months after the closing unless the buyer has an indemnification claim.
Indemnificatio Indemnification means that the buyer has a legal right to make a claim against a seller for a problem with the business. These provisions shift risk between the buyer and seller. An experienced lawyer will negotiate them heavily. If you agreed to specific indemnification provisions in a letter of intent, you may end up assuming much more risk than you realized. Selling your business isn’t like selling your house. There is no standard contract, and there is no set of government-imposed provisions. Before you make any commitments, and especially once you get a term sheet, call your lawyer. If your lawyer doesn’t have experience with selling a business, find a lawyer who does.
Estate plans for business owners create peace of mind By CHARLES W. “CHUCK” CREWS Attorney, Crews Law Offices
A person can execute an estate plan at any time before they die, so long as they have the competency to legally sign documents. For business owners, it is especially important to implement an estate plan and then to keep that plan updated from time to time. For most business owners, the value of the business comprises most of their wealth and the primary source of income. The first step in establishing an estate plan is to know the category of your business: owner-dependent, multigenerational, or marketable. An owner-dependent business is a business that is unlikely to continue after the owner retires or dies. The owner must pay out the profits as income and also save assets for retirement. Many professionals, such as physicians, accountants, and lawyers, and some other businesses, such as restaurants and even automotive garages, can fit into this category. However, a plan can be developed to make these types of businesses multigenerational. No matter the type of business you own, it is especially important to minimize the risk of personal liability from the business activity. This can be ac14
UBJ | 6.30.2017
complished through adequate liability insurance, well-drafted contracts dealing with issues of liability and indemnification, and the use of business entities that protect an individual from liability, such as corporations or limited liability companies. When the business owner retires or dies, liability insurance may be maintained for a reasonable period to cover any unexpected liabilities. If the owner has died, the family should consult an estate-planning attorney regarding trust administration or probate to limit any statute of limitations for potential liabilities and to ensure the business is properly valued for estate and income tax purposes. If a business has multiple owners, it is very important for the owners to have a plan in place to continue the business after the death of one owner. For many businesses, a buy-sell agreement is an excellent way for a surviving owner to continue operating the business and for the family of the deceased owner to receive the value of the deceased owner’s share of the business. Buy-sell agreements typically are funded by life insurance so that the surviving owner receives life insurance proceeds. Under the agreement, the surviving owner is then required to purchase the deceased owner’s interest from the family of the deceased. The agreement also establishes the sale price of the business so that the possibility of disagreements is reduced.
Acting now will ensure peace of mind for your loved ones so that they can continue the lifestyle you want them to have, even if you are no longer in the picture. Regardless of the type of business you own, it is critical for you to establish your estate plan. Start with a will or trust and other documents such as financial power of attorney and health care power of attorney. Also, ensure you have adequate life insurance to protect your family upon your premature death. It is also crucial that your estate plan include a succession plan for your business. If your family can continue the business, make sure they have a clear understanding of the day-to-day operation. If the business is marketable, develop a plan for selling it after your death. Acting now will ensure peace of mind for your loved ones so that they can continue the lifestyle you want them to have, even if you are no longer in the picture.
COMMERCIAL REAL ESTATE TRANSACTIONS IN THE UPSTATE
THE BURGESS COMPANY HAS ANNOUNCED THE FOLLOWING TRANSACTIONS: Grayson Burgess was the agent in the sale of 0.46 AC with 2,050 SF office/ flex space at 69 Rocky Slope Road in Greenville by Claudia S. Alhassan to Kpe & She LLC. Grayson Burgess was the agent in the lease of 1,400 SF of retail/ office space at 838 Powdersville Road in Easley by Garret Properties to LivWest Technologies LLC. Grayson Burgess was the agent in the lease of 1,400 SF of medical office space at 838 Powdersville Road in Easley by Garret Properties to Thrive Chiropractic of Easley LLC.
CUSHMAN & WAKEFIELD | THALHIMER HAS ANNOUNCED THE FOLLOWING TRANSACTION: Brian J. Young, CCIM, SIOR, Kacie Jackson, and Elliott Fayssoux were the agents in the lease of Caliber North, a 171,600SF industrial building located on Green Road in Greer to Rudolph Logistics.
PINTAIL CAPITAL PARTNERS HAS ANNOUNCED THE FOLLOWING TRANSACTIONS: Tyson Smoak, CCIM, was the agent in the lease of 2,386 SF of office space at 508 Rhett St. in the historic West End Greenville by West End North LLC to The Bateman Law Firm. Tyson Smoak, CCIM, was the agent in the sale of a 3,000-SF office building located
at 37 Brendan Way in Greenville to Amrish Patel, MD. Alex Phillips was the agent in the lease of 1,380 SF of office space at 700 E. North St. in Greenville by United Home Loan Service to Northstar Financial. Tyson Smoak, CCIM, was the agent in the purchase of a 5,500SF building located at 656 Fairview Road by Kim’s Tae Kwon Do to Madriaga Martial Arts.
COLDWELL BANKER COMMERCIAL CAINE GREENVILLE AND SPARTANBURG HAS ANNOUNCED THE FOLLOWING TRANSACTIONS: Pete Brett, CCIM, David Sigmon, CCIM, and Matt Vanvick were the agents in the sale of +8.152 AC at 5 Webb Road in Greenville by South State Bank to Sunit Vashi, Murali Epair & Rakesh Naik. Pete Brett, CCIM, David Sigmon, CCIM, and Matt Vanvick were the agents in the sale of a +5,000SF medical office condominium at 527 Mills Ave. in Greenville by LPT Associates, a SC General Partnership to Wright Way Holdings LLC. Pete Brett, CCIM, David Sigmon, CCIM, and Matt Vanvick were the agents in the sale of a +9,207SF retail/residential building at 109 W. Main St. in Pickens by Bumbling Ventures LLC to Lookup Holdings LLC. Angela Halstead and Tim Satterfield were the agents in the sale of a +30,000-SF industrial building on +8.43 AC at 491 Old
Greenville Road in Spartanburg by James A. Phillips to Mealor & Streetman LLC. David Sigmon, CCIM, and Sammy DuBose of Coldwell Banker Commercial Caine were the agents in the lease of a +8,520SF office space at 220 N. Main St., Ste. 605, in Greenville by Greenville Main Street Office LLC to Insurance Applications Group Inc. Sammy DuBose was the agent in the lease of a +1,200SF flex space at 124 Old Mill Road, Ste. H, in Greenville by Professional Office Rentals LLC to Mintrox Service Center LLC.
COLLIERS INTERNATIONAL HAS ANNOUNCED THE FOLLOWING TRANSACTIONS: Richard Barrett, MCR, and Brannan Hudson were the agents in the lease of 171,600 SF of industrial space at 2988 Green Road in Greer to Rudolph Logistics North America Inc. Richard Barrett, MCR, and Brannan Hudson were the agents in the lease of 3,100 SF of flex space at 4 McDougall Court in Mauldin by R&J Investments to OBS Roofing Inc. Richard Barrett, MCR, and Brannan Hudson were the agents in the lease of 1,544 SF of flex space at 111 Smith Hines Road in Greenville by Thomas Centre LLC to EngRoTech USA Inc. Richard Barrett, MCR, and Brannan Hudson were the agents in the lease
of 10,000 SF of flex space at 1095 Thousand Oaks Blvd. in Greenville by Golden Oaks Industrial Park LLC to Clear Touch Interactive Inc. Richard Barrett, MCR, and Brannan Hudson were the agents in the lease of 5,066 SF of flex space at 1100 Thousand Oaks Blvd. in Greenville by Golden Oaks Industrial Park LLC to Clear Touch Interactive Inc. Brantley Anderson and Taylor Allen were the agents in the sale of 2,459 SF of office space at 200 N. Main St. in Greenville by Davis Family Properties LP. Scott Burgess and Lance Byars were the agents in the sale of 3,450 SF of retail space at 119 W. Front St. in Liberty by Hunt Hendrix & Carter Investments LLC to Clearwater Holdings LLC. Scott Burgess and Lance Byars were the agents in the lease of 1,750 SF of retail space at 655 Fairview Road in Simpsonville by New Market Fairview LLC to Sperry Van Ness. Scott Burgess and Lance Byars were the agents in the lease renewal of 3,566 SF of retail space at 15 S. Main St. in Greenville by Caprocq Greenville LLC to Charles Schwab & Company. Scott Burgess and Lance Byars were the agents in the sale of 1,200 SF of retail space at 2802 E. North Ave. in Anderson by Pruitt Corporation of Anderson to Cheryl A. Hayes
JOYNER COMMERCIAL HAS ANNOUNCED THE FOLLOWING TRANSACTIONS: Steve Greer was the agent in the sale of a 3,000-SF property at 408 B Cedar Lane in Greenville by Lucky 13 LLC. Hope Tz Schmalzl was the agent in the lease of 1,800 SF at 1210 Laurens Road in Greenville by Sun Trust Invest Group LLC to Richard Smith. Matt Carter, CCIM, was the agent in the sale of a 14,250-SF office building at 122 Park Place Court in Greenville by JJT & J LLC (Mauldin Investments). Ted Arnold was the agent in the sale of a 3,200-SF warehouse at 11 Harely Barn Court in Greenville by McKinny Auto Holdings LLC.
| DEALMAKERS
Deanna Hudgens was the agent in the lease of 104 Mauldin Road, Suite B, in Greenville by JDP Investments LLC to Betterbuilt Storage LLC. Randall Bentley was the agent in the sale of 0.687 AC at 1395 S. Church St. in Greenville by Greenville County Medical Society Inc. to C&C Properties I LLC. Randall Bentley was the agent in the sale of 250 Broadcast Drive, Spartanburg, by Broadcast Partners LLC to Les Lor Realty Company. Randall Bentley was the agent in the sale of 38 Ray E. Talley Court, Simpsonville, by Smith Corners LLC to Tallula C. Williams Revocable Living Trust.
Matt Carter, CCIM, was the agent in the lease of 1,200 SF at 221 Cooper Lane, Suite C, in Easley by Karick Development.
Willz Tolbert was the agent in the lease of 419 SE Main St., Suite 202, in Simpsonville by Chancellor’s LLC to George E. Sansoucy, PE LLC.
Michael Joseph was the agent in the sale of 12,000 SF at 221 880 S. Pleasantburg Drive, Building 4, in Greenville by Remoca Corporation.
Randall Bentley was the agent in the sale of 206 N. Pendleton St. in High Point, N.C., by Mannington Mills Inc. to Right Side Properties LLC.
Steve Greer was the agent in the sale of a four-unit townhome building at 23 Wilton St. in Greenville by Carey Phelps.
LEE AND ASSOCIATES HAS ANNOUNCED THE FOLLOWING TRANSACTIONS: Kevin Bentley was the agent in the lease of 498 Garlington Road, Suite B, in Greenville by Washington Partners LLC to AF Global Corporation. 6.30.2017
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Randall Bentley was the agent in the lease of 200 Ben Hamby Drive, Suite B, in Greenville by JoCo Holdings LLC to Advantage Sport & Fitness Inc. Randall Bentley was the agent in the lease of 121 McDougall Court in Greenville by Ora Properties LLC to Mark I Moving and Storage Inc.
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REAL ESTATE DEALS AND DEVELOPMENTS ACROSS THE REGION
Greenville’s first IV bar to open early this fall Greenville’s first IV bar is slated to open early this fall at 700 Garlington Road in the 1,500-square-foot center space of a strip mall whose tenants also include neighboring Studio Luxe and Subway. The building is owned by David Bright. Byron Culbertson with Joyner Commercial represented the tenant in the transaction. Revived Aesthetics, a partnership between Greenville attorney John Mussetto and pediatric registered nurse Jennifer Valentine, will offer intravenous vitamin infusions that deliver replenishing fluids, vitamins, and minerals directly to the bloodstream, along with other treatments, such as microblading, a semi-permanent eyebrow tattooing procedure, and Botox. The space, currently in the build-out stage, will feature polished concrete floors and a monochromatic color scheme of whites and grays. The layout includes two private treatment rooms, along with an open seating area with soft seating and laptop tables where IV therapy will be offered.
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IV therapy is a growing trend among athletes and those who may have partied a little too hard the night before. It is used for sports recovery, hydration, cold and flu recovery, migraine treatment, and as a hangover cure, among other uses. “We’re focusing on promoting to athletes rather than as a hangover cure,” Mussetto says, although he first discovered an IV bar in Key West, Fla., after his fiancée rapidly recovered from a hangover following IV therapy.
The new Revived Aesthetics will offer medical spa treatments, including IV vitamin infusions. Photo by Will Crooks
John Riddle Professional Recruiter
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The nearest IV bars to Greenville are in Charlotte, N.C., Atlanta, and Charleston, and are more common in destination cities. Valentine, who will manage the business, is certified in microblading through Nadia Afanaseva, the founder of Eye Design Studio in New York City. Valentine also has training in Botox, fillers, lasers, microneedling, and body contouring. “As an RN, who has worked in various hospital settings, I am very experienced and adequately trained to ensure that I follow the proper procedures and protocols to ensure the safety of all of my clients,” Valentine says. A medical doctor is also required to be on site in order to offer the proposed treatments. Valentine and Mussetto are currently interviewing applicants for that position.
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50 5
Celebrating Celebrating 16
UBJ | 6.30.2017
PLAY-BY-PLAY OF UPSTATE CAREERS
HIRED
PROMOTED
HIRED
HIRED
| ON THE MOVE
HIRED
EMILY WEIER
JANE FINNEY HALL
THOMAS BAEZ
KATY SIDES
GREG HANLON
Joined Jackson Marketing, Motorsports & Events as an account coordinator. A graduate of Bob Jones University with a degree in business administration with a concentration in marketing, Weier participated in Jackson’s spring internship program. As an account coordinator, Weier will assist with the day-to-day marketing and event activities of various clients.
Named as director of strategy and integration at Infinity Marketing. In her new role, Hall will oversee the research, development, and implementation of multiplatform marketing strategies for Infinity’s client roster. As part of Infinity’s leadership team, she also guides the agency’s crossdepartmental integration efforts.
Joined Furman University as director of the counseling center. Baez is an experienced therapeutic practitioner with extensive experience in strategic planning, implementation, and the assessment of practice outcomes. He has served as director of counseling services at the University of Texas at San Antonio for the past 11 years.
Joined Hollingsworth Funds Inc. as an associate of strategic initiatives. Most recently, Sides served as vice president of finance and operations for the Institute for Child Success in Greenville. While there, she established internal operations, developed financial management practices, managed the organization’s grants portfolio, and led research to promote advocacy.
Joined Integrated Power Services as senior vice president, South region. Hanlon brings a track record of commercial and operational experience and results, having spent over 25 years in leadership roles with companies like GE and NexEra Energy. He has four certifications from the Association of Energy Engineers and is a U.S. Green Building Council-certified LEED Green Associate.
MARKETING
LAW
Crawford Strategy, a full-service agency committed to providing strategic and creative communications solutions to businesses, awarded the 2017 Sandy Linning Excellence Award to Jacqueline Vaughn. Vaughn, accounting assistant at Crawford Strategy, administers all account-based processes, paperwork, and records to ensure accurate financial reports.
Wyche, P.A. has added three new attorneys as it expands to meet growing client needs. Josh Lonon joins as special counsel, bringing 13 years of commercial real estate experience. Matthew Couvillion and McKinley Hyman have joined Wyche as associates. Lonon advises a diverse set of clients on sophisticated commercial real estate transactions. Couvillion focuses his practice on transactional matters, with an emphasis on corporate law, tax, and nonprofit organizations. Hyman focuses on business litigation, with an emphasis on employment law.
Colliers International is pleased to announce that Reid Watkins has relocated from the company’s Columbia office to serve as a marketing coordinator in the Greenville office. Watkins previously worked as a marketing intern with Colliers and has transitioned to marketing coordinator after graduating from the University of South Carolina with a degree in marketing and management earlier this month. As a marketing coordinator, Watkins will provide marketing, research, and administrative support, including the preparation of property marketing materials, proposals, and demographic reports to a team of brokerage associates.
CONSTRUCTION O’Neal Inc., a Greenville-based integrated design and construction firm, has hired Juliana St. John as project engineer. St. John has experience with project engineering, concrete research, and testing, having previously worked for Macromix Concrete Inc. She earned her bachelor’s in civil engineering from the University of Puerto Rico.
ACCOUNTING
TECHNOLOGY
Elliott Davis Decosimo has been designated as a HITRUST CSF Assessor by HITRUST. As an assessor, Elliott Davis Decosimo has been approved to provide services using the HITRUST CSF, a comprehensive security framework developed in collaboration with health care and information security professionals. It brings together several compliance frameworks and information security standards, providing organizations with a flexible and efficient approach to regulatory compliance and information risk management.
Kopis, the largest and oldest custom software development firm in the region based out of Greenville, has hired Preston Lowe and Chris Snow as software engineers. Lowe joins the application services team, where as a software and database engineer he will be responsible for maintaining applications and databases on an ongoing basis. Snow joins the application development team as a software engineer, where he will work directly with clients on software development projects, both leading projects as well as supporting development leads.
Greene, Finney & Horton LLP is pleased to announce the hiring of five new staff accountants in their Greenville and Mauldin offices. Recent Anderson University graduates Chris Ayers and Benjamin Lawyer, along with Bob Jones University graduate Kendra Jeffcott, join the audit team as staff accountants. Recent Clemson graduate Brett Irvine joins the tax office as a staff accountant. The firm also welcomes Charles Goessel, who serves as a supervisor in the audit office. In addition, three college accounting students were hired for internships for the summer of 2017: Cedarville University student Seth Barron and Anderson University students Jessica Burgess and Drew Duncan.
CONTRIBUTE: New hires, promotions, & award winners may be featured in On the Move. Send information and photos to onthemove@upstatebusinessjournal.com. 6.30.2017
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#TRENDING |
INFORMATION YOU WANT TO KNOW
THE WATERCOOLER Social Chatter
RE: ANALYST: INDIA, NOT GREENVILLE, TO FILL BIGGEST FUTURE F-16 ORDER
RE: FIRST LOOK: JOE’S PLACE BOOKSTORE REOPENS IN PETTIGRU DISTRICT
“Who cares? It’s 1970s technology. It’s best if we fight to produce the F22 or F35. Stop looking backwards for table scraps. Ask our senators and representatives why the latest fighters are not being built in S.C.” Mike Locke
“Will try to swing by on a future Greenville excursion. I hope that many more bibliophiles will as well, and even folks who are just curious. Yeah, Amazon’s super convenient (most of the time), but nothing can truly substitute for a fully realized brick-and-mortar bookstore, especially when in such a distinctive location... the smell of books old and new, along w/ coffee and wine. A sensory feast.”
“This is how you get business with India nowadays. By selling your technology through a joint venture.” Christophe Lm
TOP 5: 1. First Look: Joe’s Place Bookstore reopens in Pettigru District
Austin Trousdale “Awesome, folks! We are looking forward to game nights and trivia!” Robert Uselton
• AN’S $16M • CHARTSP H SYSTEM ST HEALT ’S LARGE ISSUE // SC S THI INSIDE
JUNE 23,
E BOWLING BOUTIQU
EENVILLE TOWN GR IN DOWN
“My favorite bookstore in Greenville. SO excited to hang out at this beautiful new location!” Vanessa Levin-Pompetzki
RE: TILT ARCADE BAR PLANNED FOR FORMER POUR LOUNGE LOCATION ON MAIN STREET “Games and alcohol, finally :).” Christy Ashkettle
RE: TEE HOOPER MAY SPEAK SOFTLY, BUT HE WIELDS A BIG INFLUENCE IN THE UPSTATE “Just a great guy all the way around.” Scott Townes
DIGITAL FLIPBOOK ARCHIVE
The layout of print meets the convenience of the Web. Flip through the digital editions of any of our print issues, and see them all in one place. upstatebusinessjournal.com/ past-issues
E 25 VOL. 6 ISSU 2017 |
2. Tee Hooper may speak softly, but he wields a big influence in the Upstate
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3. Analyst: India, not Greenville, to fill biggest future F-16 order
ak softly,
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Tee Hoop Photo
by Josh
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4. TILT Arcade Bar planned for former Pour Lounge location on Main Street
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5. Owners of Atlanta’s The Painted Pin look to put first out-of-state location in downtown Greenville
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DATE
EVENT INFO
WHERE DO I GO?
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Tuesday
Small Business Development Center’s Summer Breakfast
The Old Cigar Warehouse 912 S. Main St. 8:30 a.m.
For more info: 864-370-1545, ClemsonSBDC@clemson.edu
Business After Hours Business Fair
Haywood Mall 700 Haywood Road 3:30–7 p.m.
Cost: Free to investors
Basic Small-Business Startup
NEXT Innovation Center 411 University Ridge 5:30-7:30 p.m.
Cost: Free
7/20
Basic Small-Business Startup
Tri-County Technical College Pendleton Campus 7900 US-76, Pendleton 5:30–8 p.m.
Cost: Free For more info: piedmontscore.org/workshops
Friday
Innovative Leadership Series Presents: Gary Parsons
Clemson MBA at Greenville ONE 1 N. Main St. 6-8 p.m.
Cost: Free For more info: bit.ly/2sAUOtb
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Chairman larry Jackson, Jackson marketing Group. Photos by Greg Beckner / Staff
Jackson Marketing Group celebrates 25 years By sherry Jackson | staff | sjackson@communityjournals.com
JULY 28 THE CRE ISSUE The state of commercial real estate in the Upstate.
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onthemove@upstatebusinessjournal.com UBJ welcomes expert commentary from business leaders on timely news topics related to their specialties. Guest columns run 700-800 words. Contact managing editor Jerry Salley at jsalley@communityjournals. com to submit an article for consideration. Circulation Audit by
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1997 Jackson Dawson launches motorsports Division 1993
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
1990 Jackson Dawson
acquires therapon marketing Group and moves to Piedmont office Center on Villa.
Kristy Adair | Michael Allen
CLIENT SERVICES
UBJ milestone
1988 Jackson Dawson opens in Greenville at Downtown Airport
1988
1998 Jackson Dawson moves to task industrial Court
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
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 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
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