ECONOMIC DEVELOPMENT IN THE SUPER REGION
Florida Hospital is ranked the #1 hospital in the state of Florida for the second year in a row. And ranked nationally in ten specialties.
Cancer
Cardiology & Heart Surgery
Diabetes & Endocrinology
Gastroenterology & GI Surgery
Geriatrics
Gynecology
Nephrology
Neurology & Neurosurgery
Pulmonology
Urology
We thank you for trusting us with your care. We thank our clinicians for their commitment to excellence.
FloridaHospitalUSNews.com
MKTGPR-14-21943
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Orlando 4078412330 | Jacksonville 9043987000 | Melbourne 3216228651 Miami 3053748303 | Tampa 8136394222* | Winter Springs 4077965064
GRAY MATTER MATTERS
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DEPARTMENTS
SPECIAL FEATURES: EDUCATION
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I.C.Y.M.I.
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COVER STORY: GLOBAL STUDIES
ON THE COVER
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ETC . . .
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GROWTH OF STEM
COVER PHOTO BY DANIELLE TAUFER
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AN APP A DAY
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TECHNICALLY SPEAKING
IN CASE YOU MISSED IT
NEWS, NOTES AND COMMENTARY
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COUNTY REPORT
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PERSPECTIVES
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PARTING SHOT
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SUPER REGION AT A GLANCE
LEADING POINTS OF VIEW
PEOPLE AND PLACES
OCTOBER | NOVEMBER 2014 • FORWARDFLORIDA.COM
International students at Florida universities bring multiculturalism and a big economic impact.
Science, Technology, Engineering and Math (STEM) takes root in the Super Region.
Technology is changing education one innovative tool at a time.
From buzzword to boom, the new EdTech industry is finding its way into classrooms near and far.
International students on UCF campus.
our backyard just keeps getting bigger. Distribution centers in the southeastern uniteD states
Tampa Bay-Orlando I-4 corridor is home to Florida’s largest concentration of Distribution Centers.
Florida is one of the fastest growing markets in the U.S. and poised to soon overtake New York as the 3rd most populous state, with a projection of more than 20 million. With today’s population of more than 8 million residents and 55 million visitors annually, the Tampa Bay/Orlando I-4 corridor is a massive consumer market, projected to be the fastest growing region in Florida for the next 20 years. This tenth largest economy in the U.S. with a GDP of more than $302.6 billion, the Tampa Bay/Orlando I-4 corridor will increase at twice the rate of Miami/South Florida over the next 6 years.
port tampa bay – a new, better way to serve the Florida market and beyond.
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Source: Martin aSSociateS & chain Store guide
tampa bay
contents 54 28 48 52
30 SECTIONS INNOVATIONS
SPECIAL REPORT
HOW2
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28
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GROWING IDEAS INTO ENTERPRISES
25 26
TRANSFORMING LIVE
Can’t decide whether to go to the game or watch it on TV? Now you can do both.
COCKPIT TO CLASSROOM
For Julie Moore, the journey from fighter pilot to teacher makes for great lessons.
SOCIAL STUDIES
Stetson University’s new program aims to break down barriers for at-risk students.
TECHNOLOGY AND ENTREPRENEURSHIP
HEALTHBOX
A toolkit for health-care entrepreneurs.
SITE SELECTION A CLOSER LOOK
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TRENDS TO WATCH
What’s hot in Florida’s Super Region.
YOUR SOCIAL ENTERPRISE Here’s why it’s failing.
GLOBAL PULSE
52 OCTOBER | NOVEMBER 2014 • FORWARDFLORIDA.COM
EYE ON TRADE
By land. By sea. By air.
The new rules for nonprofits.
LEGISLATIVE UPDATE
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BUILDING COMMUNITY
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CHANGE FOR CHARITIES
POLICY MAKING IN ACTION
SOCIAL ENTREPRENEURSHIP
INTERNATIONAL NEWS
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EXPERT TIPS AND ADVICE
AND THE WINNER IS...
State’s economic recovery propels incumbent to re-election in tight race.
KEEPING SCORE
BUSINESS OF SPORTS
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BOWLED OVER
Florida’s newest bowl game has a special purpose.
TAKE THE LEAD
Tony Jenkins, Market President, Central Florida, Florida Blue Chair, Leadership Orlando Class 89
Are you on the outside looking in? Are you ready to use your expertise and passion to advance a cause that will change and strengthen our region? Do you want to step inside the circle of decision-making that is shaping the future? Leadership Orlando recruits, cultivates and encourages established and emerging leaders from across seven counties to better serve Central Florida. Through our one-of-a-kind curriculum, you will explore regional assets, gain insight into the hottest topics from “those in the know,� and connect with more than 70 other like-minded professionals. Take the lead and enroll today!
Class 89 begins March 10, 2015 Contact Danielle Gulasa, Director of Business Development, at 407.835.2444 or visit LeadershipOrlando.org to reserve your space! @LeadershipORL #LeadershipOrlando
ECONOMIC DEVELOPMENT IN THE SUPER REGION
FORWARD FLORIDA
Forward Florida is the only magazine in Florida solely focused on economic development. The magazine’s mission is to educate both internal and external audiences to the growth opportunities in Florida’s 23-county Super Region. Its targeted distribution list includes C-level executives, Super Region legislators in Washington, D.C., and Tallahassee, economic development professionals, site selectors and targeted industries within the region and across the nation. Forward Florida magazine is published bimonthly, and delivers news and information via the website forwardflorida.com.
SUPER REGION
The Super Region stretches from Metro Orlando to Tampa Bay on the west coast, to the Space Coast on the east, northward to Gainesville, southwest to Sarasota and south to Highlands. The Super Region boasts: • 90-plus colleges and universities; • a high-tech corridor that generates $1 billion in economic impact; • the world’s largest cluster of theme parks • a multimodal transportation system that includes the Kennedy Space Center and Orlando and Tampa airports, which move 52 million passengers annually; • 72 miles of beaches; and • five professional sports teams. Tampa Bay and Orlando combined account for a $269 billion gross regional product, representing the ninth largest U.S. economy and the 40th largest metropolitan economy in the world.
PUBLISHER SUSAN REVELLO susanr@forwardflorida.com ASSOCIATE PUBLISHERS JOEL BRANDENBERGER joelb@forwardflorida.com
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OCTOBER | NOVEMBER 2014 • FORWARDFLORIDA.COM
PRESIDENT STUART L. ROGEL
CHAIR BARRY M. ALPERT
TAMPA BAY PARTNERSHIP
4300 W. Cypress St., Suite 700 Tampa, FL 33607 tampabay.org
You Dreamt it. You Built it. Let’s Grow it Together. GrowFL has a number of innovative programs, tools and services to help lead your business toward prosperity! GrowFL is a statewide economic development organization certified by the National Center for Economic Gardening through the Edward Lowe Foundation. Since 2009, we have assisted more than 700 second-stage companies through our Strategic Research and CEO Roundtable programs and recognized 200 successful entrepreneurs through our annual awards program, Florida Companies to Watch.
Apply today at GrowFL.com Follow us
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i.c.y.m.i. |
in case you missed it
Downtown Orlando is a planned future home of both UCF and Valencia College.
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Pointing Downtown DOWNTOWN ORLANDO, HERE WE EXPAND. That’s the message University of Central Florida President John Hitt delivered in late September to officials, appropriately enough, at a downtown breakfast meeting. There is no timetable for the expansion and few other specifics were outlined, but Hitt described UCF’s plans as a “game changer.” Valencia College also will be a partner in the move, meaning approximately 10,000 students from the two schools could study on a downtown campus. While no location has been revealed, UCF is first considering the area named Creative Village, and UCF and Valencia have pledged to work with the nearby Parramore community along with a new K-8 school that will be built there. Currently, UCF’s Florida Interactive Entertainment Academy and the UCF Center for Emerging Media reside within the planned village. The downtown initiative has its roots in a visit by Hitt last year to Arizona State University’s Phoenix campus, which enrolls more than 11,500 students. His desire to explore a robust downtown campus piqued the interest of Florida Senate President-Designate Andy Gardiner, Sen. David Simmons and House Speaker-designate Steve Crisafulli, a UCF alumnus. In turn, UCF received a $2 million state appropriation to perform a feasibility analysis. Stay tuned.
OCTOBER | NOVEMBER 2014 • FORWARDFLORIDA.COM
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i.c.y.m.i. |
in case you missed it
Preeminent Successor IT’S OFFICIAL. On Jan. 1, Bernie Machen, University of Florida’s president since 2004, hands the baton to W. Kent Fuchs as UF continues its race toward national preeminence. Since 2008, Fuchs served as provost of Cornell University, where he oversaw 14 academic colleges and schools, $2.2 billion in annual expenditures and $500 million in annual sponsored and organized research. He developed Cornell’s Strategic Plan for achieving academic preeminence as one of the world’s top 10 universities, launched a university-wide FUCHS reimagining initiative that enhanced Cornell’s academic stature, and led an effort that resulted in the creation of a new graduate applied sciences campus. Also, Fuchs was personally responsible for raising $1 billion in gifts, including donations of $130 million, $80 million and $50 million. He is expected to fit right in at UF, which received funding from the Florida Legislature to establish itself as one of the nation’s top 10 public research universities. In the daily online Cornell Chronicle, Cornell President David Skorton offered parting praise: “Kent’s impact on all aspects of Cornell during his tenure as provost cannot be overstated. The legacy he will leave behind will be felt by all Cornellians, and by colleagues at other top research universities, for decades to come.”
SkyHouse Orlando is one of several multifamily projects across the region that are recently completed, under construction or on the horizon.
Crane Reaction BUSINESS, AS THEY SAY, IS BOOMING. In Tampa, the value of fiscal-2014 construction permits exceeded $2 billion, eclipsing the previous record of $1.78 billion set in 2007. The 34,500 permits encompass projects ranging from single-family homes to commercial developments. That activity doesn’t even include the “topping out” of SkyHouse Channelside, where a 23-floor, 320-unit luxury apartment building is halfway completed. Also, there’s late-stage discussion of a four-star hotel in Ybor City as part of continual area revival. Earlier this year, a 320-unit SkyHouse was completed in Orlando. Also, for the first time in more than a half decade Zom Florida Inc. is constructing new luxury apartments — the $70 million-$100 million Baldwin Harbor at Orlando’s Baldwin Park. Construction work at Elan @ Audubon Park is slated to begin before year end, with 449-unit luxury apartments on a site formerly earmarked for industrial development near Orlando Fashion Square Mall. And, as just one more example, the Medical City’s Lake Nona Village continues to mature with the recently announced addition of another 12,600 square feet of commercial space. Driven by heightened demand, construction activity — particularly commercial development and especially apartments — is in full recovery mode. That, of course, means communities and cities are growing, people are investing, and new jobs are being created. Some hard numbers: In Metro Orlando alone, there are than 4,500 units currently under construction, according to Real Data LLC, based in Richmond, Va. (For more information about construction and land development, look for FORWARD FLORIDA’s Issue 6 in December.)
Grand Opening
Tiered seating in the Walt Disney Theater at Orlando’s new Dr. Phillips Center accommodates more than 2,700 people.
THE ORCHESTRA HAS BEEN CUED, the curtain raised. And the spotlight is on. Show time for the Dr. Phillips Center for Performing Arts has finally arrived. On Nov. 6, the $429 million center, which began construction in June 2011, celebrated its grand opening. Actually, the pomp and circumstance lasted a week, as a project that ebbed and flowed through political debate and economic uncertainty was unveiled in a series of special events. The 300,000-square-foot building, located across from Orlando City Hall, contains the Walt Disney
Theater, Alexis & Jim Pugh Theater, CNL Arts Plaza, School of the Arts and ancillary spaces. An acoustics hall highlights the planned phase two, with an undetermined timetable. The facility, funded with public (mostly tourist tax) and private charitable dollars, replaces the 88-year-old Bob Carr Performing Arts Centre. Among the 30 largest metropolitan markets nationwide, Orlando was the only major city without a signature performing arts facility. Orange County commissioners approved the venue in July 2007. The wait is over.
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etc. … | news, notes and commentary ○
POWERDMS FLEXES MUSCLE
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High-Tech Mystery TECHNOLOGY Orlando’s tech sector — which Forbes noted is now the city’s second largest industry — continues growing and gaining accolades. As reported earlier in the year, POWERDMS raised $5 million in venture capital and announced plans to expand downtown. More recently, the company’s 133 percent growth landed it on the prestigious Inc. 5000 list.
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Its website describes the company as an “idea” built on principles such as “the future of computing should be derived from respecting human biology, physiology, creativity and community.” Team members are described as “story-tellers, rocket scientists, software ninjas, computing hobbits” and a bunch of other half-cool/half-nerdy sounding names. Oh, and the site features an image of a humpback whale flying over a beach. So, what exactly is Dania Beach-based MAGIC LEAP? It is promising to deliver the “next leap in cinematic reality,” but beyond that no one quite knows what to make of the South Florida firm. Two things are clear: 1) Google and several other leading tech investors have kicked in a combined half billion dollars to the company; and 2) Magic Leap has attracted three UCF researchers plus a former EA Tiburon employee to work for it, so its Super Region ties are growing. As to where it goes from here: Stay tuned.
OCTOBER | NOVEMBER 2014 • FORWARDFLORIDA.COM
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THE CORRIDOR “BRAND” NEW
AEROSPACE/AVIATION In October, Brazilian aviation company EMBRAER broke ground on its $76 million business jet assembly complex at Melbourne International Airport. Embraer already has assembly operations there, in addition to an engineering and technology center and a global customer center.
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A prescription for new ventures? FLORIDA BLUE has teamed up with TAMPA BAY WaVE to establish the Florida Blue Innovation Zone, expanded space at the WaVE’s popular site in downtown Tampa. Among the start-up tenants are Healthbox Florida (Page 28). The Tampa Bay WaVE, which helps entrepreneurs start companies, opened in March 2013 and has a waiting list for tenants. Florida Blue invested $30,000 for the expansion.
AGRICULTURE Florida citrus growers let out a short collective sigh of relief with this news: THE U.S. DEPARTMENT OF AGRICULTURE initially projects an increase in citrus production for 2014 to 2015, pegging the orange crop at 108 million boxes, up from last season’s total of 104.4 million. The USDA makes its initial estimate in October of each year and revises it monthly until July. The projection reverses two years of decline and provides a bit of optimism for growers fighting bacterial citrus greening. The USDA also forecasts Florida growers to produce 15 million boxes of grapefruit, 2.8 million boxes of tangerines and 900,000 boxes of tangelos – all production levels relatively consistent with 2013 to 2014.
USF President Judy Genshaft proudly points to the university’s research prowess.
EDUCATION Just call it The Corridor. That’s the message the FLORIDA HIGH TECH CORRIDOR COUNCIL is delivering with new branding for the 23-county organization. The refreshed brand is a reflection of prominence that continues to increase across the region, cites President Randy Berridge. The Corridor includes more than 25 local and regional economic development organizations and 14 community colleges along with anchors University of Central Florida, University of South Florida and University of Florida. Within The Corridor, the council has worked with 360 companies on nearly 1,350 research projects, generating close to $1 billion in economic impact, according to its 2014 annual report.
USF PRESIDENT JUDY GENSHAFT has long touted the importance of high-impact research and a culture of innovation on campus. Recent numbers offer proof: USF set new records for patents, licenses and start-up companies during the 2013-2014 fiscal year, with 113 new U.S. patents (up 49 percent from last year), 91 licenses and options for USF-developed technology (up 21 percent), and 11 new start-up companies (up 22 percent). USF is ranked among the top 50 universities nationwide for research expenditures, according to the National Science Foundation, and has been among the top 15 universities worldwide for U.S. patents for the past four years, according to the Intellectual Property Owners Association/NAI rankings.
BUSINESS
Florida Beer Company in Cape Canaveral, along with other craft beer breweries, means big business across the state.
The foam clearly rises to the top when it comes to craft beer in Florida. According to the BREWER’S ASSOCIATION, in 2012 (the most recent year measured), Florida consumption was responsible for more than $875 million in impact to the U.S. economy and led to the employment of almost 11,000 related industry workers statewide. That’s a lot of suds at new brew taps — particularly in Tampa Bay at places like ZEKE’S BREWING, THREE PALMS BREWING, CIGAR CITY BREWPUB, PAIR O’ DICE BREWING, BREWERS TASTING ROOM, CYCLE BREWING, GREEN BENCH BREWING and 3 DAUGHTERS BREWING. Cheers to new enterprises. In fact, Tampa’s brewing scene is so vibrant, it was named the nation’s No.2 Best Beer Town in a USA Today poll.
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MAITLAND ART CENTER GAINS DISTINCTION
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ARTS/HISTORY When it opened in September 1914 there was no electricity, no lights. Yet, since starting as Ocala High School and now as OCALA’S EIGHTH STREET ELEMENTARY, the school has been a community beacon for 100 years, making it the oldest school in continuous use in Florida. The original price tag for construction: slightly more than $46,000. A $2.6 million renovation occurred in 2000, the year it was placed on the National Registry for Historic Buildings. A cornerstone of the brick building remains, as does a century of memories.
THE MAITLAND ART CENTER is a reflection of itself — making history by becoming the first National Historic Landmark in Orange County and the 44th statewide. It previously achieved National Historic Register status four decades ago. The center showcases ornate Mayan Revival influences and features gardens, sculptures, paintings and architecture.
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PHOTO BY JOHN JERNIGAN
Built for $46,000 in 1914, Ocala’s Eighth Street Elementary School is the oldest in continuous use statewide.
OCTOBER | NOVEMBER 2014 • FORWARDFLORIDA.COM
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L A K E M A R Y L A N D S N E W M A N U FA C T U R I N G J O B S
EDUCATION SAINT LEO UNIVERSITY is banking on its new BB&T CENTER FOR INNOVATION & TECHNOLOGY to deliver enhanced business safety and spark new ideas. Highlights of the center are the Cybersecurity Laboratory, which supports the teaching of the university’s new master’s degree in the field, and the Collaboration Zone, where business students work on real-world projects for area companies and nonprofits. Housed at the Donald R. Tapia School of Business, the center opened by virtue of a charitable gift from BB&T Bank.
Using grant money from the Florida Board of Governors, USF has joined UCF and Florida International University in forming the FLORIDA CONSORTIUM OF METROPOLITAN RESEARCH UNIVERSITIES. USF, UCF and FIU produce nearly half of the baccalaureate degrees awarded by Florida’s state universities and serve 70 percent of Florida’s ethnic and racial minority populations. The universities will share best practices, policies and programs to maximize career readiness, particularly among under represented and limited-income students. In addition, UCF is part of the new University Innovation Alliance, a group of 11 top public research universities focused on helping more low-income and first-generation students earn college degrees. UCF is the only Florida school participating.
Any way you do the math, this is big: A $25 million gift from alumnus LES MUMA and his wife has created the MUMA COLLEGE OF BUSINESS AT USF. It’s the single largest donation in USF’s history and brings the Muma family tally to more than $41 million. Les Muma, a 1966 mathematics graduate, is the retired chairman and CEO of Fiserv Inc., a financial industry automation products and services company.
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HOSPITALITY/TOURISM CAPA, a 17th-floor rooftop steakhouse and bar that boasts the “best of Spanish-influenced cuisine in a romantic setting like no other,” has opened in the FOUR SEASONS RESORT ORLANDO AT WALT DISNEY WORLD. The menu, created by Florida-native Chef Tim Dacey, draws from the Basque culture of Spain and France. The restaurant features an open kitchen and wood-burning grill, while the outdoor patio’s diners enjoy views of the nightly fireworks. The Four Seasons opened in August and provides Disney patrons with a luxury hotel choice.
Capa serves up Spanish cuisine and Basque culture at the Four Seasons Resort Orlando.
Two Marriott-brand hotels are finally ready to play ball at FLAMINGO CROSSINGS, a rising project on the edge of Disney property near the ESPN WIDE WORLD OF SPORTS COMPLEX. In mid-October, following several delays, construction began on the TownePlace Suites and SpringHill Suites, which will add 500 “budget” suites to Disney’s hotel inventory by January 2016. Disney officials project that within 10 years Flamingo Crossings will contain some 5,000 hotel rooms and timeshare units plus 500,000 square feet of retail space.
MANUFACTURING
HEALTH CARE
MITSUBISHI HITACHI POWER SYSTEMS AMERICAS is promising big growth in Lake Mary, north of Orlando — roughly 100 mostly professional jobs in a consolidation of its North American headquarters. The company manufactures power plant turbines in a south Orlando factory and has its Mitsubishi Heavy Industries operations in Lake Mary. The company, which merged with Hitachi last February, will move into a larger building there next year.
Lake Nona Medical City has another first: the GUIDEWELL INNOVATION CENTER — a three-story, 92,000-squarefoot facility that’s the first multitenant building in Central Florida designed specifically for life sciences, health innovation and technology companies. The center, scheduled to open late next year, will offer a mix of lab, clean room and office space.
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county report |
super region at a glance
With the Central Florida Intermodal Logistics Center, Winter Haven connects itself with an expanding trade universe. In a step toward expanding global trade, statewide transportation leaders, legislators and local officials gathered in mid-October for the grand opening of the Central Florida Intermodal Logistics Center in Winter Haven and pointed to a new, broader future. The 318-acre ILC, which launched operations in April, serves as a centralized hub for Orlando, Tampa and other regional Florida markets. In addition to offering seamless connectivity between several transportation modes, the facility includes three high-powered electric cranes, solar panels and high-mast exterior lighting. It has the capacity to process up to 300,000 containers a year and is designed for expansion as freight volumes grow. “The Central Florida ILC is the result of strategic collaboration between the City of Winter Haven, numerous state and local partners, and CSX to create jobs and further strengthen Flori-
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OCTOBER | NOVEMBER 2014 • FORWARDFLORIDA.COM
da’s transportation system,” commented Michael Ward, chairman of transportation giant CSX. Added Winter Haven Mayor Nathaniel Birdsong: “The Central Florida ILC is a game-changer for Winter Haven not only because of the opening of the state-of-the-art terminal, but because of the economic development potential this project represents. Winter Haven is now a partner in the freight distribution industry and is in the position to serve as an inland port for the global entry of goods and merchandise in Florida.” The ILC is designed for scalable expansion as freight volumes grow. A surrounding 930 acres can be developed in phases to build distribution centers and light industrial facilities totaling up to 7.9 million square feet. Interestingly, with designs on a first phase of development, Winter Haven Industrial Investors LLC in July purchased more than 500 acres of adjoining property.
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county report |
super region at a glance
LAKE
SARASOTA
FLEXING MUSCLE Expect significant expansion at Lake County’s largest flexible-use industrial complex, Hunt Industrial Park in Groveland. The plan is to eventually accommodate more than 100 companies while adding hundreds of local jobs in commercial, industrial, retail, warehouse and manufacturing sectors. Three additional buildings of flexible office and warehouse space are planned along with a 13,200-squarefoot storefront building and a full-service professional incubator office building. Opened in 2004, Hunt Industrial Park doubled in size four years later to more than 103,000 square feet. It hit 100 percent occupancy last year, with 60 tenants. Notably, Hunt Industrial Park is one of the reasons Florida produced $61.8 billion in manufactured goods at last count, according to the Lake County Office of Economic Development & Tourism.
DIAMOND LANES Economic growth serves as the median of $83 million in advanced funding for an Interstate 75/University Parkway interchange in Sarasota County that will become Florida’s first diverging diamond interchange. The DDI design, first used in the United States in 2009, is recognized as a leading transportation innovation for traffic flow and safety. The funding, announced by Gov. Rick Scott, is pending approval by the Florida Legislature. The project expands I-75 to an eight-lane freeway with three through lanes and an auxiliary lane in each direction from University Parkway Interchange South to Fruitville Road interchange — a pivotal stretch of roadway for Sarasota and Manatee counties, particularly with the opening of the new Mall at University Town Center and a world-class rowing center at Nathan Benderson Park, which are both economic drivers for the region. The funding, says Florida Senate President-Designate Andy Gardiner, sends “the right message to employers looking to locate and expand their businesses here in Florida.”
PASCO DRONING IN PASCO COUNTY A sign of things to come? The Pasco Economic Development Council hosted the first Tampa Bay Unmanned Aerial Systems (UAS) Commercial Markets Conference on Oct. 30. Among the topics: the emergence of UAS (drone) applications becoming a major economic and technological story — and Tampa Bay’s possible role in its growth. The half-day workshop was co-sponsored by the Association of Unmanned Aerial Vehicle Systems International, The Corridor, Pasco EDC, Pasco-Hernando State College, USF Connect, Tampa Bay Partnership and Turin Aviation Group. The intent was to learn more about promising applications in agriculture, industry, infrastructure, civil services, private security, media, entertainment, highend consumer, scientific research and the environment.
LIFTOFF In a quest to broaden its horizons, NASA breaks new ground in Brevard County.
NASA’s new headquarters at Kennedy Space Center has hit the launch pad. In October, officials broke ground on the 200,000-square-foot building, which will cost approximately $64 million and be completed by late 2016. The current headquarters dates back to the 1960s and will eventually be demolished. The new building, part of Kennedy Space Center’s emerging campus, will include the International Space Station processing facility and the Operations and Checkout Building. The campus will consolidate 11 buildings and feature pedestrian walkways instead of vehicle traffic. According to NASA officials, replacing old, energy-inefficient structures with modern buildings will save the agency $400 million over the next 40 years in energy and repair costs.
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county report |
super region at a glance
MOSAIC OF SUPPORT A gift to givers helps the Red Cross pursue its mission. Prepare Florida, a landmark, statewide effort that is mobilizing communities to be better prepared in the face of disaster, has received a boost of its own — a recent donation of $100,000 to the American Red Cross by The Mosaic Company, a leading global producer of concentrated phosphate with Florida headquarters in Hillsborough County (Lithia). Red Cross chapters throughout Florida are training communities to be prepared and engaging more people as the Red Cross increases both the tools and training that are needed to meet any disaster Floridians may experience. Red Cross and Mosaic have partnered since 2004,
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when the company was formed and Florida was devastated by four hurricanes. The relationship has steadily increased, and this year’s grant continues to help the local Red Cross chapters provide emergency services. Since 1881, the Red Cross has worked to prevent and alleviate human suffering in the face of emergencies, by mobilizing the power of volunteers and the generosity of donors. The nonprofit organization, in fact, depends on volunteers and the generosity of the American public to perform its mission. Its presence in Florida dates back nearly 100 years — with Mosaic’s recent donation helping to ensure the future.
FLAGLER
MARION
COUNTING ON EXPERIENCE Real life trumps a textbook. That’s the thinking at Matanzas High in Palm Coast, where students are more than simply learning about finance. The newest branch of VyStar Credit Union is located at the school. A dozen or so students work at the bank, which cost about $150,000 to build. Only checking and savings services are offered; lending must be done at the credit union’s regular Palm Coast branch. VyStar originated the concept in 2007, when it opened a school branch in nearby St. Johns County. The credit union’s president and CEO, Terry West, is a former eighth-grade math teacher.
POWER PRINCIPAL Principal Jayne Ellspermann of West Port High in Ocala is the best. Literally. The National Association of Secondary School Principals named Ellspermann the 2015 National Principal of the Year. Ellspermann joined the school district 34 years ago and spent the past 10 years as West Port’s principal. She’s also a former law enforcement officer. Ellspermann has developed a college-going culture personalized for students, highlighted by the lunchtime PowerHour, a student-empowerment initiative she launched giving students autonomy over an hour of their school day for academic enrichment, open labs, clubs and other creative opportunities. After three years of PowerHour, the results: Course failure has nearly disappeared, the graduation rate has jumped 15 points and participation in activities has increased seven-fold to nearly 70 percent.
OCTOBER | NOVEMBER 2014 • FORWARDFLORIDA.COM
ALL YOU
NEED FOR
YOUR BUSINESS
IS IN THE
FLORIDA
HIGH TECH CORRIDOR.
A talented and diverse workforce. Top-ranked business climate. Easy access to research faculty at three world-class universities. Florida’s High Tech Corridor has everything you need to grow your company. VISIT WWW.FLORIDAHIGHTECH.COM.
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perspectives |
leading points of view
Sensing opportunity in advanced manufacturing, educators along with industry leaders and government officials are building toward a new era.
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here’s a lot of talk these days across Florida’s Super Region about sensors and advanced photonics manufacturing … in fact, there’s another article in this edition of FORWARD FLORIDA (page 24) devoted to the University of Central Florida’s Florida Advanced Manufacturing Research Center in Osceola County that is sparking international interest. So what’s really behind all this chatter? At the heart of it is enlightened thinking on the part of many leaders by RANDY BERRIDGE and a willingness to leave egos and PRESIDENT, THE CORRIDOR logos at the door when presented with a game-changing opportunity that has the very real potential to transform the economy across The Corridor … Florida’s High Tech Corridor … a 23-county area that includes what is often called Florida’s Super Region — and more. We are an area that over the past 20 years has been breaking new ground in cooperation and collaboration … some call it “co-opetition” — where our companies, communities, counties, colleges and universities
aggressively compete for individual wins, but as in the case of the advanced manufacturing center, come together for what can only be called a collective victory. Consider that this project could be responsible for nearly 20,000 jobs over the next 10 years. Imagine the impact of high-wage, high-value jobs that are part of a renaissance of manufacturing on U.S. soil made possible by technologies developed here at home. UCF and Osceola County agreed to go all-in to position the region as ground zero in a movement that will see manufacturing of devices that in many ways act like humans … able to sense things and movement around them, designed to sense changes in critical environments ranging from the very cold to those that depend upon constant temperature such as petroleum transportation — all the while reacting to those changes or reporting to the end user at critical levels. All of us have seen amazing advances in recent years in everything from our refrigerator at home which senses a freezer failure or even a door left ajar, windshield wipers that come on automatically at the slightest moisture on the windshield and smartphones that are sensitive to our touch and quickly perform functions that heretofore would have required countless keystrokes. We have begun to live in the sensor-driven age … an era made possible by a combination of semiconductor and photonic advances, many of which are tied to CREOL, UCF’s College of Optics & Photonics which produces some of the top minds in the field. And you might think that this is just one of those Metro Orlando things that will be great for people in the immediate surrounding communities, but investments by the University of South Florida in Tampa and the University of Florida in Gainesville (UCF’s partners in The Corridor), disprove that. Both schools immediately committed $250,000 of
their own funds toward this initiative because all indications are that this will spread out across the entire region. On the heels of that, Florida International University in Miami made an equal commitment in the belief that this will truly be a statewide asset. Add this to a UCF commitment of $10 million and $6 million from The Corridor over five years (the largest single grant in our 20-year history) and you see an impressive picture. There’s good reason to believe that will happen because this project is much like the one that sparked enormous high tech growth in Austin, Texas, when nearly 30 years ago a consortium known as SEMATECH was formed to focus on semiconductor research and development. It is credited as being the driving force for economic expansion, resulting in doubling of Austin’s population and sparked a run of high tech growth that continues today. Now, UCF and its academic and commercial partners are headlong into creation of a similar initiative … known as ICAMR (the International Consortium for Advanced Manufacturing Research), a consortium devoted to the same level of research and development activity for sensor-driven manufacturing that SEMATECH ignited in Austin. In fact, Dan Holladay — formerly a senior engineering executive at SEMATECH — has come to UCF to head
up the effort of creating this 100,000-square-foot, $61 million facility, as well as to recruit consortium partners globally. Stay tuned as major corporate and institutional partners are added to the consortium, as Osceola County and UCF complete this employment center and the world’s high tech attention becomes focused on yet another example of how working together can result in such positive outcomes. EDITOR’S NOTE: RANDY BERRIDGE HAS SERVED AS PRESIDENT OF THE FLORIDA HIGH TECH CORRIDOR COUNCIL (NOW THE CORRIDOR) SINCE ITS INCEPTION. THE CORRIDOR SPANS 23 COUNTIES, CONNECTED BY THREE RESEARCH UNIVERSITIES (UCF, USF AND UF), 14 COMMUNITY AND STATE COLLEGES, 12 REGIONAL WORKFORCE BOARDS, NUMEROUS INDUSTRY GROUPS AND THOUSANDS OF COMPANIES. ITS ECONOMIC IMPACT FOR THE REGION — $1 BILLION.
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growing ideas into enterprises
Can’t decide whether to go to the game or watch it on TV? Now you can do both.
LiveEventTV streams live multichannel HDTV to fans’ smart mobile devices, providing attendees with more live TV action than those watching at home.
“L
ive” has new life. Thanks to Central Floridabased imediaReach®, attendees at several sporting events during the past year have taken part in a new technology demonstration that has the potential to dramatically transform the “live” experience. These fans downloaded a special app called LiveEventTV™ to their smart
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mobile devices, plugged in a small antenna and received multichannel livestreaming HDTV of the event they were attending, in addition to the play-by-play radio broadcast, local news channel and stats. And all these channels were available without impacting fans’ data plans. “[With the] LiveEventTV technology, every seat in any venue becomes the best seat in the house,” says Gary Bonner,
co-founder of imediaReach. The app is also targeted to the entertainment industry, such as live concerts, he noted. The Winter Springs-based company, a client of the University of Central Florida Business Incubation Program, uses UHF rather than cellular or WiFi to steam live multichannel HDTV to the end-user’s smart mobile device. As such, LiveEventTV can handle a stadium full of users without any negative impact to network capacity and broadcast performance. The technology essentially provides venues the opportunity to deliver closedcircuit live broadcasts to every smart mobile device-equipped fan. Several more live demos are anticipated this year. Says Bonner: “With LiveEventTV, fans can have it all right in the palm of their hands — all the sights, sounds and fun of the live event combined with all the extra video, audio and data streaming live to their smart devices.”
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OSCARS OF INVENTION
UCF, together with NASA’s John F. Kennedy Space Center and an early-stage startup company HySense Technology, recently were recognized by R&D Magazine for developing and producing one of the top 100 innovations of the year. The award, known as the R&D 100, is widely regarded as the “Oscars of Invention.” UCF researchers at the Florida Solar Energy Center began work on the breakthrough technology, a color-changing tape to visually detect hydrogen leaks, under a grant from NASA’s Glenn Research Center. Use of hydrogen as industrial feedstock in the chemical industry and fuel for space exploration carries the risk of a destructive accident if a hydrogen leak — able to burn at more than 5,000 degrees Fahrenheit when ignited with as little as a static spark — isn’t pinpointed and fixed quickly. The color-changing concept for a visual cue was conceived by UCF’s Ali Raissi, Ph.D., who developed a chemochromic pigment (a type of pigment that changes color in the presence of a
INTERNET OF THINGS
UCF and the University of Florida have joined forces to research the materials, sensors, actuators, power sources and electronics that are expected to drive the “Internet of Things” — the interconnection of the cyber and physical worlds, which engineers predict is the future of the Internet. By 2020, engineers predict that 20 billion items will be connected to and controlled through the Internet, such as thermostats, cars and even coffee makers. The UCF-UF partnership is called the MIST (Multi-functional Integrated System Technology) Center and was selected by the National Science Foundation to play a leading role in researching the next generation of “smart” electronics. Funded through an NSF program that combines federal money with industry investments in strategic research, the MIST Center will
UCF’s recent “Oscars of Invention” win is emblematic of successful industry collaboration.
particular chemical) with a team of scientists, including Nahid Mohajeri, Ph.D., who would later bring the invention to market. The UCF team sent its original tape and pigment to NASA engineers, who tested it for use on the launch pad and
incorporated the pigment into other materials such as textiles used to make space suits. The invention’s novelty is backed by four issued patents and five pending patent applications, including international applications.
receive $880,000 from the NSF and about $4 million from industry and government partners. “The MIST Center will shape what our smart electronics will look like in the near future,” says Jiann-Shiun Yuan, UCF MIST director and a professor in UCF’s Electrical and Computer Engineering division. “Our faculty and students will have the opportunity to perform advanced research driven by industry needs for smart sensors and integrated systems.” The MIST Center will also feed manufacturing-ready technologies to the newly established International Consortium for Advanced Manufacturing Research in Osceola County. UCF, Osceola, The Corridor, the Metro Orlando Economic Development Commission and other partners are building the 100,000-square-foot, state-of-the-art research center focused on the
manufacturing of Smart sensors to target the mega-growth technologies offered by the Internet of Things. The MIST Center, which will host its inaugural meeting with industry and government partners in December, is a collaborative center housed in UCF and UF. The team comprises faculty from multiple disciplines, including electrical engineering, mechanical engineering, materials science and engineering, biomedical, and chemistry, and the UCF College of Optics and Photonics. Yuan and Hyoung Jin Cho, professor, Department of Mechanical and Aerospace Engineering, lead the UCF team. Toshi Nishida and David Arnold, professors in Electrical and Computer Engineering, lead the UF team. “The opportunity to work with NSF, UF and industry on this strategically important research boosts our national and international visibility and is a win-win for all involved,” says Michael Georgiopoulos, dean of the College of Engineering and Computer Science.
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DIGGING INTO PHOTONICS MANUFACTURING
UCF is seeking to secure Florida’s role as a national leader in photonics manufacturing by competing for $220 million in federal and private funds to house a national Integrated Photonics Manufacturing Institute for Manufacturing Innovation. UCF President John C. Hitt announced the university’s intention to pursue the federal money at the recent groundbreaking ceremony for the firstof-its-kind Florida Advanced Manufacturing Research Center in Osceola County. UCF is joining Osceola County, the Florida High Tech Corridor Council (newly branded The Corridor) and the Metro Orlando Economic Development Commission in building the 100,000-square-foot manufacturing research facility focused on smart sensors. The new federal grant opportunity would expand the center’s focus to include photonics research. In October, President Obama announced the competition, signaling the White House’s support of investment in this area and the belief that photonics — a new technology harnessing the power of light and lasers — will be a cornerstone in manufacturing’s future. UCF’s College of Optics & Photonics and its Center for Research and Education in Optics and Lasers (CREOL), a recognized national leader in its field, are uniquely positioned to lead the effort, cites MJ Soileau, UCF’s vice president for Research & Commercialization. “We are in full-court-press-mode to develop a proposal,” he says. The creation of a federal Photonics
Groundbreaking for the Florida Advanced Manufacturing Research Center. Back row, left to right: Janine Captain, Luke Roberson, Robert “Bobby” DeVor, Gary Bokerman, Robert “Bob” Youngquist and Karen Thompson. Front row, left to right: Nahid Mohajeri, Nazim Muradov, Ali Raissi, Martha Williams, Trent Smith. Not pictured: Robert Paul Brooker and LaNetra Tate.
Manufacturing Institute for Manufacturing Innovation in Florida would greatly add to the roughly 30,000 photonics-related jobs in the state, noted Alex Fong, president of the Florida Photonics Cluster. While a 2009 report by The Corridor and Florida Photonics Cluster put the gross regional product at $3.65 billion and sales of these companies at $7.27 billion, the national impact of the industry rises to more than $3 trillion. While pursuing the federal money, UCF and its partners are not waiting to move forward with construction of the center. The Corridor will contribute $1 million
initially. The Corridor also will expand the scope of its signature Matching Grants Research Program at UCF, the University of South Florida and the University of Florida to include sensor-driven advanced manufacturing. Up to $5 million of matching funds will be available for research activities and the operation of the consortium over five years. “From the outset it was clear that this partnership with UCF and Osceola County has the potential for a huge impact in terms of jobs and opportunity that will change our economic landscape, but little did we know it could happen this rapidly,” says Corridor President Randy Berridge.
RECORD RESEARCH FUNDING
UCF received a record $145.6 million in funded research, a 30 percent boost from last year. Among the key funding: $29 million to deliver workplace training through 2016; $19.3 million to improve disease detection in citrus and strawberries; $15.2 million for the advancement of robots in the military; and federal support of $72.2 million, including funding as Florida’s only Multidisciplinary University Research Initiative award recipient; and $59.4 from industry and professional and nonprofit organizations and $14 million in state and local funding.
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growing ideas into enterprises
For Julie Moore, the journey from fighter pilot to teacher makes for great lessons.
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hose who can, do. Those who can’t, teach. Unless you’re Major Julie Moore. An accomplished fighter pilot, Moore spent 12 years of distinguished active duty in the U.S. Air Force, where she flew the $30 million F-16 fighter jet in locales both foreign and domestic. For many, the story would end there. For Moore, the Air Force was the first part of a career that continues to unfold today in the classrooms of Florida Institute of Technology’s College of Aeronautics. And she owes the latter, in large part, to the former. In 2007, Moore received the prestigious assignment to serve in the U.S. Air Force Aggressors, a squadron of the best-of-the-best pilots whose job was to act, essentially, as the enemy. In the sky and on the ground, the Aggressors demonstrated adversary systems and tactics. In other words, they were teachers. Other fighter squadrons in the United States and allies around the world were the pupils. It was Moore’s first time as an instructor, and soon she was hooked.
“That’s when I fell in love with teaching,” she recalls. In 2010, after three years in the Aggressors, she transitioned to a role as an active duty detachment commander in the 93rd Fighter Squadron at Homestead Air Reserve Base in South Florida. She held that position until 2012, when she became a reservist. A graduate of the U.S. Air Force Academy, Moore by 2012 had earned a Master of Science degree in environmental studies, in addition to the bachelor’s degree in human factors she earned at the academy. In 2013, her commitment to and skill at teaching was validated when she was hired as an assistant professor in Florida Tech’s College of Aeronautics. She teaches a variety of upper-level classes at the college, including courses on unmanned aerial systems, advanced aircraft systems, aeronautics and air traffic control. But her work has extended well beyond the classroom. In early fall, Moore worked with Homestead to bring two F-16s to the Melbourne Air & Space Show, an event
that drew upward of 150,000 people. Her effort, which included flying one of the jets into Melbourne International Airport for the show, encapsulated how she and the university use her military experience to enliven and strengthen her teaching. “It’s really great that Florida Tech employs a reservist,” Moore says. “It’s a mutually beneficial relationship. My students are exposed to military aviation, in addition to the exposure they are given to commercial aviation. And I’m very grateful for the support I receive from Florida Tech, enabling me to do my reserve duties. “The air show was the perfect opportunity to bring these worlds together.” The F-16s, parked on the tarmac at the airport during the air show, were a magnet for her students. “I tell them a lot about the F-16 in my aero classes — aerodynamics, advanced aircraft systems and instrument procedures – so it was neat for them to see it up close and personal with me, showing them hands-on what I may have talked about in class,” she describes. That, in essence, is Julie Moore’s story: from the cockpit to the classroom and back again.
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innovations |
growing ideas into enterprises
Stetson University’s new graduate program aims to break down barriers that at-risk students face in and out of the classroom.
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social inequities that are seen throughout the country. “We have very passionate faculty members who are designing the courses,” said Shankar-Brown. “They’ll be teaching the courses, too. Our faculty members are experts in their own right, in different areas, and we enjoy collaborating — all of which is going to make this new graduate program more powerful.” The first phase of the year-long program will launch in summer 2015 and continue the following summer. It is aimed at those who are currently in the field of education, from teachers and social workers to counselors and adminishile many children dream about toys or vacatrators, and also will provide advanced professional develtions, Sydney dreams of a day when she no opment for leaders of nonprofit organizations serving longer has to worry if her family will have food children and youth. Overall, it can include anyone who is to eat and a safe place to sleep at night. Sydney, a fifthseeking a deeper understanding of social justice and grader, and her family including two younger siblings have education. been homeless for months. “It’s not just about teaching strong, solid educational More than 16 million children in the United States live in practices, but doing it from a reference and frame of mind families with incomes below the federal poverty level and within the larger context of social justice,” she says. “A signiffamily homelessness is the fastest growing segment icant part of this program is also going to address of the homeless population. Rajni Shankar-Brown, advocacy, which will support educators and social Ph.D., an associate professor and director of workers in becoming competent educational graduate programs in the Department of Education leaders and advocates. To accomplish this, we’re at Stetson University, works closely with Sydney’s going to have a variety of interdisciplinary courses family and many other families living in deep and applied learning projects taught in a hybrid/ poverty. blended model.” “When we talk about students who are marginDuring the second summer, there will be a capalized or at-risk because of systemic inequities,” stone experience for the participants. says Shankar-Brown, “we refer to a multitude of “Before the candidates graduate, they will take RAJNI SHANKARpotential variables, such as poverty, race, special part in a very innovative feature of the program,” BROWN, PH.D. needs, including learning disabilities and more.” says Shankar-Brown. “They’ll be given two To help educators better understand and serve options: one is a local experience that will allow this marginalized segment, Stetson is developing Educating them to work hands-on with low-income students, which for Social Justice, a new graduate program that will serve as will culminate in a collaboration with the Athens Theater to a master’s degree in elementary education built around perform in a drama production. The other is an international principles of social justice. The program will support eduexperience to study abroad in India while working with some of the impoverished communities overseas. This will cators in meeting the academic and social-emotional needs involve taking global perspectives and bringing them right of all students, including students considerably at-risk, such back to our local communities. as Sydney and her siblings. Shankar-Brown and Kathy “Stetson is committed to fostering intellectual develPiechura-Couture, Ph.D., are co-coordinators of the program. opment, personal growth and global citizenship, and I think “At Stetson, the Education Department conducted alumni those three core values have been bridged in Educating for surveys asking what teachers are looking for in the eduSocial Justice,” adds Shankar-Brown. “There is potential to make a significant impact in communities both near and far. cation experience and what they need help with,” says My hope is that the program will create sustainable social Shankar-Brown. “The data strongly showed that they need change and positively impact the lives of children, as well as help in the areas of reaching diverse learners and support in educators and families.” working with children in poverty, specials needs and ESOL [English for Speakers of Other Languages]. We are committed to advocating for marginalized children and improving education for all.” In response to the high demand for this kind of support, Educating for Social Justice will explore language diversity and the myriad barriers ESOLs face inside and outside the classroom. It will cover the range of diverse factors that affect a child’s life and bring that back into curriculum and instruction, with the larger goal of reverting some of the
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special report | technology and entrepreneurship
TOOLKIT FOR ENTREPRENEURS
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parks are flying with new technology companies and research in the Super Region. Technology is now the No. 2 industry in Orlando, Tampa is coming on strong with research and the University of South Florida is breaking records with patents, Gainesville and the University of Florida are cranking out startups and the Space Coast is home to a growing aerospace sector. It’s 2014 and technology is indeed disrupting and impacting people and by extension industries, such as health care, which is now a more than $3 trillion industry in the U.S. “Entrepreneurs are always attracted to opportunities,” says Ateet Adhikari, director, Healthbox, a health care accelerator. “Eighteen percent of our economy is going to health care.” Not to mention in 2011, baby boomers started turning 65 in mass numbers. For the next 19 years, 10,000 individuals will turn 65 every day. By 2030, the percentage of our population over 65 will have grown from 13 percent to 18 percent. Entrepreneurs are opening doors every day from hearing the knocks of opportunity getting louder. Healthbox heeded the call. A very successful company formed in Chicago in January 2012, it provides “tools” for health care entrepreneurs. It has grown nationally and internationally and has branched into different areas of health care. Healthbox in 2013, set up shop in Florida where it began its first accelerator program in Jacksonville.
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“The thing that drew us to Florida is Florida Blue. It’s our anchor partner of Florida programs. Having an anchor partner whose leadership is visionary and thinking about the changing landscape of health care and understanding that entrepreneurship and young innovators are going to change the business is so important. “Florida is a huge part of our national presence,” says Adhikari. Currently the second Healthbox accelerator in Florida is in Tampa Bay with its first class of seven companies (chosen from a pool of 91) in that market who will “graduate” from the program in late November. It is located inside the Tampa Bay WaVE business incubator in downtown Tampa. The business ADHIKARI model for Healthbox is to serve as an accelerator whereby companies pitch Healthbox to participate in its four-month program and those selected receive $50,000 in seed money, office space and liaison with top executives in the health care industry. In Florida, the mentors are executives with Florida Blue and other successful entrepreneurs. The ultimate goal: growth and raising capital. An experienced entrepreneur and tech leader based in Tampa Bay, George Gordon, serves as executive director, Healthbox Florida. “I came here from Silicon Valley where I ran a startup company. ... I’ve been working in the tech community in Tampa Bay since I arrived here in 2001,” says Gordon. “We started this program on Aug. 13. We are finding as time goes on, the stage of the companies that are applying for the Healthbox accelerator program, are becoming a little bit later in the development
stage. They’ve got customers, they’ve got a product in beta, they’re generating revenue — as opposed to an entrepreneur with a good idea, which is what earlier Healthbox accelerator programs saw,” says Gordon. He also talked about their anchor partner, Florida Blue. “I think they really want to see innovation in the health care industry around the whole state.” Gordon talked big picture technology in Florida. His observation is the state does not have huge technology companies that spin off little seedlings of entrepreneurs that say, ‘I can do it better than you’re doing. I’m going to start my own company.’ “That’s really what happened in Silicon Valley with Fairchild Semiconductor back in the GORDON 1970s. There have been over 100 companies that’s come out of what was Fairchild Semiconductor,” says Gordon. “My goal personally is to connect dots between diverse markets in Florida, so the whole state can be looked at from the outside as, ‘hey this is the place where a technology company can locate and grow and prosper.’” Adhikari said Healthbox is looking closely at Orlando and Miami and is “exploring opportunities across the state.” “Florida absolutely has this balance of both talent and really strong entrepreneurs that are passionate, but also a willingness for them to learn and desire to get insight from experts who have worked in health care for a long time and know what works and what doesn’t work,” notes Adhikari. Sunshine State forecast: a mix of entrepreneurs, health-care companies and lots of sun.
Electronic Pill to Swallow Consumer health care on cutting edge
eTect was started almost five years ago (2009) and grew out of a Gainesville company called Convergent Engineering founded by Dr. Neil Euliano, currently eTect CEO. Eric Buffkin, company president, talked about eTect’s mission and genesis, including its prototype ID-Cap system to address the issue of medication noncompliance. “It’s got this embedded electronic sensor in it. When you have your medicine in one of our capsules and you swallow it, it sends out a very low-power message. You can think of it like a little text message. The message is picked up and carried through the patient’s mobile phone back to our database and then we can share that information with the doctor, the patient, the patient’s spouse, caregiver or with their employer or their employer’s health plan. Whomever the patient has authorized us to share with,” explains Buffkin. He is very grateful to the Florida Institute (Commercialization of Public Research) for its early funding of his company in May 2012. “With a funding commitment from the Institute we were able to secure the additional funds needed to achieve critical milestones in our product and company development,” says Buffkin. eTect received follow-on funding from the Institute’s subsidiary — Florida Technology Seed Capital Fund in April 2014. Buffkin noted the funds were matched by private money. This Florida startup success story was a tenant at the Florida Innovation Hub at the University of Florida when it opened in 2012. Buffkin views it as a lightning rod in bringing people to Gainesville. He cited the university talent and resources as important elements in birthing a company. Last August eTect was awarded a $1 million contract from the National Institute on Drug Abuse (NIDA). According to an estimate by the New England Health Institute, medication noncompliance costs the health-care industry $290 billion per year — a big problem. eTect has a pill-size solution.
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site selection |
a closer look
here are a number of national site selection trends that relate especially well to Florida’s Super Region and the type of new corporate investment and jobs we see gravitating there in the months and years ahead. Two deserve special mention. The first trend involves a growth sector in the high-end corporate office relocation arena, namely the unprecedented mobility of the corporate headquarters. The second relates to the importance of strong linkages to the global marketplace to help spur a region’s local economy.
CORPORATE HEADQUARTERS ON THE MOVE
Historically immune from corporate cost-cutting and restructuring programs, the corporate headquarters office is now untethered and in play like never before. One can say that the head office is the last man standing in the game of restructuring. Indeed, most
of our clients have already reconfigured their manufacturing operations (both offshoring and reshoring) and realigned their warehouses given NAFTA, the Panama Canal expansion and the rise of intermodal transport. These same clients have also decentralized or outsourced many of their back office functions from their traditional headquarters home to lower cost, small market cities — both onshore and off.
CORPORATE HEADQUARTERS LOCATION
TOTAL ANNUAL OPERATING COSTS
New York Metro Area, NY
$29,821,280
San Francisco Metro Area, CA
$28,539,320
Stamford Metro Area, CT
$27,332,854
Los Angeles/Long Beach Metro Area, CA
$27,198,050
Washington Metro Area, DC
$26,794,851
Boston Metro Area, MA
$26,614,090
Philadelphia Metro Area, PA
$25,853,630
Minneapolis/St. Paul Metro Area, MN
$25,303,607
Chicago Metro Area, IL
$25,291,978
Seattle/Bellevue Metro Area, WA
$25,275,370
Cleveland Metro Area, OH
$24,089,492
Wilmington Metro Area, DE
$23,944,782
Milwaukee Metro Area, WI
$23,856,350
St. Louis Metro Area, MO
$23,610,524
Denver/Boulder Metro Area, CO
$23,468,881
Pittsburgh Metro Area, PA
$23,331,057
Cincinnati Metro Area, OH
$23,271,967
Dallas/Ft. Worth Metro Area, TX
$22,735,071
Charlotte Metro Area, NC
$22,115,338
Atlanta Metro Area, GA
$21,847,278
Richmond Metro Area, VA
$21,432,459
Orlando/Tampa I-4 Corridor, FL
$21,141,715
San Antonio/San Marcos Metro Area, TX
$21,127,653
SOURCE: BIZCOSTS®, A REGISTERED TRADEMARK OF THE BOYD COMPANY INC., PRINCETON, N.J.
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As companies continue to rationalize cost structures in response to global competition, the focus is increasingly turning to the remaining piece of the restructuring pie: the corporate headquarters. Pent-up demand from clients that have put off moves since the 2008 financial crisis and those seeking to rebrand themselves in a new headquarters address are other drivers here. Also, financial incentives designed specifically to attract corporate headquarters are being crafted by states competing for this holy grail of economic development. Florida has such incentives in place. In Florida’s Super Region, economic development practitioners, politicians and business leaders in major market I-4 Corridor cities like Orlando and Tampa would do well to focus on the new mobility of the corporate headquarters, along with the prestige, human capital and philanthropic stimulus a new head office brings to a city. Factors like good international air service, available Class-A office space, the absence of a state income tax and Florida lifestyle amenities all show well for the region. On the cost front, the I-4 Corridor is one of the most cost-effective office markets in the country. Shown to the left is a comparison of total annual operating costs (labor, real estate, utilities, and taxes) scaled to a representative corporate headquarters office occupying 75,000 square feet of Class-A space and employing 300 workers. Of the surveyed head office
markets, only San Antonio/ San Marcos, Texas, showed a lower operating cost profile than the I-4 Corridor. GLOBAL LINKS
Today, cities that will do well in the competitive tugof-war for new industry and jobs will be those that have special links to the global economy. We view Florida’s Super Region as being especially well positioned on the international front. Its major deep water ports, international airports, intermodal facilities, world-class destination theme parks, thriving medical tourism sector and internationally-coveted real estate are all drivers linking the region to the global economy. On the residential real estate front, the Chinese are coming and coming big. The Super Region is joining Chinese home-buying hot spots like Arcadia, Irvine and
San Jose in California, Seattle, Las Vegas, northern New Jersey and New York. Our Central Florida real estate friends tell us the communities of Reunion near Kissimmee and Minto Communities’ new Festival are doing especially well in attracting Chinese buyers. In our site selection work for Chinese companies, a precedent base of Chinese people and Chinese culture is key to attracting these companies and their jobs. Chinese companies will invest some $15 billion in the United States this year and already employ more than 70,000 Americans. Narrowing wage gaps, falling U.S. energy prices and the vagaries of currency markets are pulling Chinese companies across the Pacific and washing jobs back on U.S. shores. There is no reason the Super Region shouldn’t be
getting its share of these Chinese projects in sectors like solar, aerospace, machinery and equipment and home appliances, to name a few. Don’t forget the hospitality industry, where China’s Anbang Insurance Group just set a record for the largest acquisition of a U.S. real estate asset by a Chinese buyer, the $1.95 billion purchase of the iconic Waldorf Astoria Hotel in New York City. Closer to home, I would add that the Super Region is well positioned to gain new Cuban-related investment once the embargo is lifted. It’s no coincidence that Alliance for Responsible Cuba, the group advocating a lifting of the embargo, selected Tampa for its national headquarters because of its moderate politics on the subject and historical ties to the cigar industry in Ybor City. Tampa’s tone has long contrasted with the much more contentious environment on the subject in Miami, where the embargo seems to be a litmus test for doing business. We see Port Tampa Bay and the Tampa International Airport, e.g., becoming the key transport links for goods and people heading to Cuba once the embargo is lifted. EDITOR’S NOTE: JOHN H. BOYD IS THE FOUNDER OF THE BOYD COMPANY INC. BASED IN PRINCETON, N.J., THE FIRM PROVIDES INDEPENDENT LOCATION COUNSEL TO LEADING U.S. AND OVERSEAS CORPORATIONS. [THEBOYDCOMPANY.COM]
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Top back row from left: Xiongwei Cao (China), Monique Cijntje (Curaรงao), Marcos Degaut Pontes (Brazil), Manar Elkhaldi (Malaysia) Front row: Chen Cai (China), Rafaela Lobo (Brazil), Jason Christensen (U.S.) Location: UCF PHOTO BY DANIELLE TAUFER
Luis Aparicio, Salvadoran Diplomat, greeting former Secretary of State Hillary Clinton in Washington, D.C.
UCF GAVE ME THE BUILDING BLOCKS FOR THE CAREER THAT I HAVE NOW AFTER 30 YEARS,” SAYS LUIS APARICIO, COUNSELOR FOR POLITICAL AFFAIRS AT THE EMBASSY OF EL SALVADOR IN WASHINGTON, D.C. He recounted his years in Central Florida fondly and the networking and mentoring relationships formed there, including that of his former political science professor and mentor at the University of Central Florida, Dr. Waltraud (Trudi) Morales. And like many international students that come to school in Florida, Aparicio came because he had family living in Orlando. “I arrived in 1980 to Central Florida. I attended Valencia (Community) College first for two years and then transferred to UCF where I majored in journalism with an emphasis in public relations,” said Aparicio. “I couldn’t study journalism in my country because the national university was shut down by the military. “It was such a blessing, to have the school radio station and the library with its reservoir of resources,” said Aparicio. As president of the International Student Organization, he was involved
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UCF annual Hispanic Heritage Parade
dance. They have plays and teach you about with a number of different speakers brought to their cultures. campus. One vivid memory was that of picking “Students speak five and six different lanup former Prime Minister of Jamaica Michael Manley from the airport. “We had the campus guages, it’s not uncommon to see that,” said police escort Mr. Manley and it reminded me Mootoo. of the political conditions in my country at that Dr. Anthony J. Catanese, president and CEO time.” of Florida Institute of Technology, The number of foreign students is proud of his school’s multiculstudying in the United States and turalism. “As one of our students Florida continues to grow. Florida said in another A-list accolade we ranks seventh in the nation for the received, this one in the 2015 number of international students. Fiske Guide to Colleges, attending Delivering a profound economic Florida Tech is like traveling the impact, there is so much more world in four years. And what will occurring when young people be more desirable in the workfrom different countries and culplaces these students are pretures come together in the paring for? Someone who is classroom and the campus. versed in the interactions of the “It’s really quite amazing that world’s citizens, as our students we have all these cultures here and DR. ANTHONY J. CATANESE are, or someone who has spent the everyone seems to pretty much get PRESIDENT OF FLORIDA TECH last four years surrounded by along in unison,” said Magnus homogeneity, in and out of the Mootoo, a native of Trinidad and Tobago and a classroom? senior at Florida Institute of Technology in “So when a Florida Tech student interacts Melbourne, where he is studying ocean with another student from one of the 112 counengineering. tries we have represented here right now, Florida Tech, based on student population, when he meets with a professor who is is the most multicultural university in the informed by a global perspective, when he state. Its international student body has grown dines at one of our International Dinner Series 53 percent since 2009. Of the college’s 4,478 events highlighting authentic cuisines from total enrollment, 1,462 of those students are eight different international regions, we are international, accounting for nearly 33 percent. developing a person who will be equipped for U.S. News & World Report recognized what is coming, academically, socially and Florida Tech as the No. 2 National University beyond,” said Catanese. in the country for fostering international student experiences. Mootoo enthusiastically PLANTING SEEDS agrees. “It’s really unique that we have a The benefit of international students school here in Florida that has cultures from coming to Florida has a ripple effect. all over. It’s so diverse and we have something Frequently family members and friends will called the International Festival in the spring visit the student and voilà — the university’s semester … Students come in, display their metro area is officially on display to an food, their clothing and perform songs and increasing global audience.
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Many students who spoke with FORWARD FLORIDA mentioned the word of mouth factor with friends and family in their home countries. And several of them chose Florida because of their own visits to the Sunshine State. “I also have family who lives nearby in Florida, in Cocoa and also Fort Lauderdale and Miami. I’ve been here a lot of times before my university studies, so I was pretty familiar with the area. Trinidad is only a 3-hour flight away and I visited regularly. So I was very familiar with the customs and such,” said Mootoo. Global students can lead to families buying real estate in Florida, relocating here and ultimately working and starting businesses here. Then there’s the full-price tuition foreign students pay. Colleges and universities reap significant financial benefits from their attendance. The Brookings Institute conducted the first-ever study of the economic impact upon 118 metro areas in the United States and the results were impressive. Palm Bay (Florida Tech) was a highly ranked metro for STEM. Foreign students spent $538.7 million on living expenses and $907 million on tuition between 2008 and 2012. The most foreign students are coming from countries whose economies are on the rise. China currently sends the most students to the United States, followed by India. According to 2013 data from Open Doors, there was an increase in foreign students studying in the United States for the seventh consecutive year. The number of international students enrolled in U.S. higher education increased by 7 percent to 819,644 students in 2012 to 2013, with 55,000 more students than last year enrolled in colleges and universities across the country. There are now 40 percent more international students studying at U.S. colleges and universities than a decade ago. The growth is largely driven by students from China, particularly at the undergraduate level. Chinese student enrollments increased by 21 percent to almost 235,000 students. That included an increase of 26 percent undergraduates. “Because of the development of the economy, many more Chinese families can
Xiongwei Cao and Chen Cai, graduate students at UCF. China has the most students studying in the United States and represents the most international students at UCF, USF and UF. PHOTO BY DANIELLE TAUFER
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WORLD VIEW OF SECURITY
New PH.D. in Security Studies at UCF Given today’s ever-changing global climate, recent Ebola epidemic and terrorism threats, the University of Central Florida is offering the only program in the state, and one of a few in the country, broadly focused on security. The three-year Ph.D. program trains students for careers in national security, international affairs, world politics and transnational issues. The program is offered through the political science department and the first class will graduate in 2016. “This is a very diversified program. People are coming from different places. For example, our first cohort — there’s someone from the Defense Ministry, someone from the Navy, a former faculty member of UCF, and two international students — myself and a student from Brazil,” said Xiongwei Cao, a Chinese doctoral student in the program. He added, “In the second year we attracted someone from the National Security Council.” The Ebola epidemic and ongoing crises in the Middle East reinforce the need for such a program. The curriculum includes courses on a range of security-related subjects, such as environmental security, peace studies and international drug policy. It also features coursework on genocide, poverty and inequality, AIDS, cause of war and peace, scientific study of war, causes of terrorism, psychology of international security and national security space policy. JOBS According to the Bureau of Labor Statistics, demand for political science research is growing due to increasing interest in politics and foreign affairs. Political scientists will use their knowledge of political institutions to further the interests of nonprofit, political lobbying and social and civic organizations. Agencies such as the CIA, list multiple employment opportunities suited for graduates of this program. In addition, the Department of Defense and the Department of Homeland Security would be prime employers for Security Studies graduates. And the state of Florida requires people with advanced security studies training for employers that include U.S. Central Command, U.S. Southern Command and other military installations, the Kennedy Space Center, aerospace and industries tied to international business concerns. The program is a natural fit for UCF as the defense industry in Central Florida produces a $52 billion economic impact on the state. In other related news, the university was awarded a $1.85 million grant to establish a center focused on intelligence and national security within the political science department. UCF will be among a few universities nationwide to house an Intelligence Community Center of Academic Excellence. The grant from the Defense Intelligence Agency is the largest ever received by political science at UCF.
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University of South Florida students from Japan at annual welcome event for international students.
afford to give money for their kids to study in western countries,” said Xiongwei Cao, doctoral student in UCF’s inaugural Security Studies program. (Page 37) Cao is from Hangzhou, the capital of Zhejiang Province in Eastern China, located between Shanghai and Ningbo. He received his master’s degree in political science from UCF in 2009. “When I first came to Florida, I really started to love this city [Orlando] very quickly. People here are very nice, the weather is great, not cold, and everything is so interesting. I’ve been living in foreign countries before, but I felt so at home here. That’s the most important reason that I decided to pursue my Ph.D. degree again at UCF,” said Cao. Cao arrived at UCF originally through a cooperative program with the university and the Chinese National People’s Congress, where he had worked. “Many of my colleagues have studied here, and I also have the honor and the pleasure to study here. “There’s a little bit of a language barrier for me. I think students pursuing degrees of arts — such as philosophy, history, political science or economics — the language is trickier. I’ve got a lot of Chinese friends who are studying
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here too. For those who are in computer science, in those technological fields, maybe they had an easier time with the language than I did,” said Cao. STEM fields (Page 40) have more universal language skills required. “I think Chinese students have an advantage of good mathematics and better training, I would say in general than American students. There’s some data showing that Chinese students got higher scores, especially in the GRE on the mathematics part.” And while Chinese students are studying abroad, there is competition. The majority of Chinese students in the United States are studying in New York. It’s no surprise that globally recognized metropolitan or state “brands” are garnering the attention of students. FLORIDA IS HOT
“If you want you can use the quirky line — location, location, location. If you read articles about countries trying to attract international students, they talk about making their brand known. And Florida and especially Orlando has the advantage in part because the
DR. WALTRAUD ( TRUDI) MORALES POLITICAL SCIENCE PROFESSOR, UCF
brand is already known for other reasons and then you can just bridge that into educational opportunities,” said Dr. Waltraud Morales, professor of political science at UCF. Another educator discussed Florida’s competition being fierce with Texas, California and Indiana. And of course, when it comes to international education pursuits, the Big Apple lives up to its name. “When you talk about students being in New York City, particularly NYU, that’s another major glittering city with global awareness,” said Morales. In an attempt to compete with other states, there is a growing movement to work together. One example is Study Florida — the working name of an organization that is just now taking shape. It’s a Florida coalition intended to use joint marketing and share resources to bring international students to campuses. It will work in collaboration with the Florida Consortium for International Education (FCIE). Another selling point for Florida is the 2+2 matriculation agreement, which guarantees entry into a state university upon graduation from a state college/community college. “You’re guaranteed admission into one of the 12 state universities, so we’re selling a pathway,” said Dr. David Moore, executive committee member of the FCIE. A success story to illustrate this is the Salvadoran career diplomat Aparicio, who received his associate degree from Valencia (Community) College and then transferred to
UCF. “I could not afford UCF from the very beginning and the community college, I believe, is a great way to get kids started in the academic world,” he said. The state passed a ceremonious International Education Policy Resolution HR 9033 on April 28, 2008, designating Nov. 17-21 as International Education Week in Florida. International Education Week is a joint initiative of the U.S. Department of State and the U.S. Department of Education to promote programs that prepare Americans for a global environment and attract future leaders from abroad to study, learn, and exchange experiences in the United States. Currently 23 states participate. Universities throughout Florida take part in events and celebrations of their international student cultures. “In the world’s consciousness, I really do believe in the kind of spider plant analogy. How the spider plant branches out. I think when a colony or a small group of students from a particular part of the world organize themselves and settle in a particular place, I think it becomes a link for other students to follow,” said Morales. Economic development seeds falling straight from the apple tree.
Model Student Minnesota born and bred Jason Christensen, a 22-yearold doctoral student in the Security Studies program at UCF, is a great example of internationalization in education. He has studied in 15 countries in the past three years and is enthusiastic in his advice to American students to study abroad. “International travel and cultural immersion brought me knowledge that I could never get from a textbook. If you choose an optimistic and dauntless approach to life and academia, your curiosity will lead to new perspectives and a more informed world view,” said Christensen. He is currently with BMG Models in Miami, and while he views modeling as a great addition to his life, it is not his focus. His close-up will come when he walks onstage at UCF in 2017 to receive his doctorate.
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STEM (Science, Technology, Engineering and Math) takes root in the Super Region.
I
t’s 1961. President John F. Kennedy challenges our nation to be first to put a man on the moon. But winning the space race requires many more engineers and scientists. U.S. educators quickly mobilize to refocus 1960s school curriculums on math and science. NASA promises the adventure of a lifetime to anyone with the right stuff. Reaching the moon takes eight years, about $120 billion (in today’s dollars) and nearly 400,000 workers. Many of them settle in Florida and leave a lasting economic impression along the beaches of the newly named Space Coast. Fast forward to 2014. Despite a still-tight labor market, there’s opportunity aplenty for any and all educated in STEM (Science, Technology, Engineering and Math). A University of Cincinnati study finds two openings for every STEM worker not already employed. The Bureau of Labor Statistics projects 9.2 million STEM jobs by the end of this decade. PayScale places STEM occupations at the very top of its salary list. Our economy promises a stable, good-paying career to anyone with today’s right stuff. But despite these rosy prospects, student interest in STEM careers suffers from a 20-year decline. Without sufficient human resources to meet growth demands, emerging tech, science or engineering businesses could wither on the vine. During the 1960s, we feared losing the moon race to the Soviet Union. Are we now in danger of losing future STEM-related business opportunities to companies in other corners of the world? GREAT (ER) EXPECTATIONS
“It’s critical that our leaders continue to develop STEM educational strategies that raise the bar for our workforce,” says Carol Craig, founder and CEO of Craig Technologies, a technology and engineering firm in Cape Canaveral. “Otherwise, we won’t remain competitive in today’s global market and recapture our status as a technology and manufacturing powerhouse.”
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30%
NUMBER OF HIGH SCHOOL SENIORS TAKING THE ACT TEST WHO ARE READY FOR COLLEGE-LEVEL STEM COURSEWORK
NUMBER OF OPENINGS FOR EVERY ONE STEM WORKER NOT ALREADY EMPLOYED
AMOUNT OF FUNDING IN THE FLORIDA STATE BUDGET ALLOCATED TO STEM-RELATED WORKFORCE TRAINING
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Here’s why the bar needs raising: among the 34 member nations of the Paris-based Organisation of Economic Co-operation and Development, the U.S. ranks only 21st in the science test scores of 15-year-olds. Change the Equation, a coalition aimed at improving STEM education, claims only 30 percent of high school seniors taking the ACT test are ready for college-level STEM coursework. Like many states, Florida offers tax breaks and other incentives to entice industries — many with a large concentration of STEM workers — to locate here. A member of numerous boards, including Enterprise Florida and The Corridor, Craig watches these efforts from a front-row seat. “But to lay a stable economic foundation, we need to look beyond simply offering incentives and think more about what employers need — a high-quality education to benefit their families and provide skilled workers for their businesses.” A statewide initiative to develop and retain STEM talent is now in its fifth year. STEMflorida was created to work with educators, students and industries to raise awareness. Florida’s five regional offices for K-12 school improvement include STEM coordinators, math and science specialists, and career and technical education (CTE) experts. To assist, the Florida Department of Economic Opportunity has developed a state-specific list of the occupations that defines STEM. Health-care occupations are at the top, closely followed by jobs in computers and math. So what educational strategies are now in place? Have school curriculums been reworked à la the 1960s space race? Back then, no bucks meant no Buck Rogers. It’s no different today — it all starts with money. This past January, Gov. Rick Scott committed $30 million from the state’s budget specifically for STEM-related workforce training. Workers can take advantage of educational grants and on-the-job STEM training through CareerSource Florida, a statewide network of career
development professionals. By identifying and cultivating Florida’s STEM talent pool, CareerSource helps employers like Craig find the skills and experience they seek. “We took advantage of CareerSource programs to hire and retrain displaced aerospace workers.” THINKING ABOUT TOMORROW
But what about funding for the next generation? Dr. Jonathan P. Keener, director of STEM programs for the Florida Department of Education, points to federal program grants such as the $8 million Mathematics and Science Partnerships (MSP) offered at colleges and universities across the state. STEM education was a major emphasis in a $700 million allocation of federal funding to Florida for Race to the Top. Every school district implemented one of 22 approved STEM career academies to achieve industry certification. In the process, enrollment in accelerated STEM courses increased by 7 percent, and enrollment in STEM career academies increased by 3 percent statewide from 2012 to 2014. Since 2008 to 2009, statewide enrollment in accelerated STEM courses and career academies has increased 46 percent. “Many more of the state’s best students are now considering STEM careers,” says Keener. Educational initiatives extend to all socioeconomic levels. Funding from the U.S. Department of Education’s GEAR UP grant provides early intervention for prioritized K-12 students in targeted high-need or rural school districts. More than 1,300 gifted students in 53 schools across 27 rural school districts also benefit from increased access to accelerated STEM coursework through FloridaLearns STEM Scholars. Local tax revenues help fund STEM training for K-12 teachers and content in most Florida school districts. Keener singles out particularly strong STEM education programs in all of the elementary schools in Hillsborough and Polk counties, and STEM-based middle school classrooms in Volusia County. FILLING THE PIPELINE
Any successful educational initiative is dependent on quality STEM teachers.
The state’s universities are keeping Florida’s supply fresh and ready with innovative STEM training programs. Keener cited these three examples in the Super Region: UCF’s Master of Art in Teaching (MAT) developed in partnership with Florida Virtual School and public schools in Lake, Orange, Volusia and Seminole counties; Florida Tech’s UTeach Replication Project; and the University of Florida STEM-TIPS (Teacher Induction and Professional Support) Center. As these and other state universities continue to prepare quality teachers to plant the seeds, K-12 schools are now beginning to produce more quality STEM students. “We’ve seen continued growth in our statewide science fair, INTEL (international science and engineering fair) and scholarships provided through STEM organizations,” says Keener. Statewide STEM education successes will be celebrated at the next Sunshine State Scholars event February 19-20 in Orlando. Top high school juniors selected from each Florida school district will be recognized for their STEM achievements. “They’ll also have an opportunity to speak with Florida colleges and universities about their course offerings,” says Keener. Among them will be representatives from Florida’s newest public university, Florida Polytechnic. The school is dedicated exclusively to hands-on learning and applied research in STEM. “We’re here to ensure new generations can secure the kinds of STEM jobs that help Florida prosper,” says Ava Parker, chief operating officer of Florida Polytechnic. Parker knows that moving the needle on STEM workers and creating a mini Silicon Valley environment here will take a united effort from higher education. “We have a great university system in Florida that can quickly respond to workforce needs,” says Parker. “Florida Poly is just one more piece of the puzzle.” The university’s first class of 528 students enrolled in August; 1,700 students are expected by 2016. Eventual total campus enrollment is pegged at 5,000. This allows the school to offer a more personalized brand of STEM education.
Among the university’s 70 industry partners are such major tech players as Microsoft, Lockheed Martin, Mosaic, Cisco Systems and Harris Corp. As other industries see how committed Florida Poly is to hands-on learning and applied research, Parker is confident the partners group will continue to grow. “Because we’re smaller and can react quickly, we’re in a better position to learn and adapt to meet industry needs,” says Parker. “It also enables our interns to be better prepared to take positions with these companies when they get their degrees.” Craig agrees that internships like these help college students enter the market with tangible, real-world skills. But she also thinks STEM industries should be involved in supporting and guiding K-12 education. “By the time students reach college age, it’s probably too late to get them interested in a STEM career. I want to encourage curiosity and problem solving at the primary grade levels first to nurture natural aptitudes for STEM subjects.” Craig acknowledges the state universities have made great strides to build enrollment in STEM-related programs, citing the newly developed or enhanced medical schools at UCF and the University of South Florida and the engineering department at the University of Florida. There are other examples: UCF plans
“BY THE TIME STUDENTS REACH COLLEGE AGE, IT’S PROBABLY TOO LATE TO GET THEM INTERESTED IN A STEM CAREER. I WANT TO ENCOURAGE CURIOSITY AND PROBLEM SOLVING AT THE PRIMARY GRADE LEVELS FIRST TO NURTURE NATURAL APTITUDES FOR STEM SUBJECTS.” —CAROL CRAIG FOUNDER AND CEO OF CRAIG TECHNOLOGIES
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to use its share of a $1.79 million grant to increase by 67 percent the number of degrees it awards in computer-related fields by 2018, while Florida Institute of Technology is using grant money to help community college students transfer to Florida Tech to study civil, chemical or ocean engineering. EXPANDING INDUSTRY’S ROLE
UNIVERSITY
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Craig wants to see companies make investments in STEM education. “As owners, we should all consider adding a line item to our budgets that allocates direct financial support.” She also believes businesses should become personally involved. Craig Technologies has hosted and mentored students from Merritt Island High School’s da Vinci Academy of Aerospace Technology; hosted high school students from the Bayside Engineering and Technical Academy (BETA) in a half-day job shadow experience; and visited fifth grade students at Enterprise Elementary School to discuss entrepreneurship and careers in STEM. In addition, Craig’s Corporate Communications Manager Carey Beam serves as a board member with the Space Coast Science Education Alliance that works directly with teachers, students and curriculum developers. Craig also sponsors school-based
activities such as FIRST Robotics Competition and Odyssey of the Mind. Interestingly, Craig seeks engineers, technicians, programmers and quality officers who are also well-versed in non-STEM fields. “Anyone educated in liberal arts, human resources or communication adds value through their combination of soft and technical skills.” And since not all STEM careers require a four-year college degree, Craig suggests that companies with manufacturing facilities regularly invite vocational students to work side-by-side with technicians. According to Keener, some students are even achieving industry certifications and STEM employment through career and technical education. “These courses have been truly STEM for many years, as each integrates math, science and technologies being utilized in the field,” says Keener. “Some students are able to achieve STEM-related job employment right after high school graduation. No matter the institutional level, it’s clear that STEM is everywhere. Florida Poly’s Parker is a seasoned education administrator, previously having chaired the Board of Governors for the state university system. “Historically, our emphasis has varied depending on the jobs demand in a particular time period,” says Parker. “Today’s economy makes STEM careers the top educational priority.” LEADING THE WAY
It’s been more than 50 years since Kennedy challenged the United States to reach for that era’s top technological achievement. Florida played a major role. Today, this nation is fighting to keep its place at the top of an increasingly competitive global marketplace. Once again, Florida is vying for a major role. To succeed, an able workforce of trained STEM workers is crucial. Now, as then, taxpayers and executives in education and industry are working together to ensure that today’s students become tomorrow’s STEM leaders.
TOP PICKS ART Faces iMake Kids make fanciful facial art using everyday objects in this right-brain app.
SCIENCE Thinkrolls Learn about physics while rolling round characters through a series of mazes.
READING Reading Rainbow Classic reborn as fee-based e-library with great selection.
STEM
I
t used to be children in the classroom got their hands dirty from crayons, finger painting with maybe some Elmer’s glue thrown in. Today’s flash cards are replaced with the flashing lights found on computer screens. Welcome to classrooms in 2014 brought to you by advances in technology. We now have little hands holding cold, smooth computers, iPads and tablets. This year more than 750 million educational apps for mobile devices will be installed worldwide. While opinions are mixed on the role of apps in the classroom, everyone can agree they are here to stay and most educators propose a balance between the high tech and human touch. Edtechpreneurs are growing in numbers. Here’s a look at some popular children’s apps.
TROBO: Homegrown in Orlando Two engineer dads, Jeremy Scheinberg and Chris Harden, wanted to help kids get interested in STEM (Science, Technology, Engineering and Math). Enter TROBO. The cuddly, plush robot through its interactive storytelling iPad teaches personalized stories to children, age 2 to 7. Story concepts include: How is Honey Made? What is Lightning? What is Gravity? How do I Count Money? How Does a Car Go? The company raised more than $60,000 in a Kickstarter campaign that ended in October. Entrepreneurs at heart, Scheinberg and Harden really began collaborating at a startup weekend event in Orlando in November 2013. Orlando has fertile ground for tech entrepreneurs where there is excitement and a great spirit of collaboration. Parents were part of the TROBO focus groups in tailoring the educational tools. An avatar builder allows them to design an avatar of their child and put them in the stories. And, of course, there will be a boy (Edison) and a girl (Curie) TROBO. An extensive library is planned for the app and the Christmas Wish List for 2015 — store shelves. PICKS COMPILED FROM COMMONSENSEMEDIA.ORG AND BESTAPPSFORKIDS.COM
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As tests and curriculums change, hardware, software and the Internet are staples in classrooms across Florida.
PHOTOS COURTESY OF THE ELI AND EDYTHE BROAD FOUNDATION
R
ob Bixler has seen the writing on the chalkboard for some time. Now the clock is ticking down; the bell ready to ring. Bixler is senior director for strategic data systems in technology and innovation for Orange County Public Schools — “a big title,” he says with a chuckle. And there is an urgent task to match at the nation’s 10th-largest school district and fourth largest statewide. Next fall across Florida, half of all classroom instruction must begin using digital materials, as mandated by the state Legislature. At the same time, Florida shifts to the Common Core State Standards, joining 45 other states and the District of Columbia in a move designed to align what students learn in K-12 more closely with what they need to know in college. And already, all students must complete an online course in order to graduate from high school — to be taken through their high school, the Florida Virtual
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From buzzword to boom, the new EdTech industry is finding its way into classrooms near and far. School or a dual-enrollment course at a college. Significant and widespread change is afoot in K-12 classrooms. And technology is squarely in the middle. “Technology in the classroom has sort of always been there,” says Bixler. “But in general, probably over the last three years, technology has boomed, especially in the state of Florida.” Hardware, software and the Internet are sharing space with, and in many cases replacing, textbooks and traditional teaching. “College and career readiness really lends itself to the use of technology,” Bixler cites. “Most professions have changed dramatically over the last several years, and almost everything is technology based. Industries are changing at light speed.”
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Not coincidentally, colleges and universities are witnessing their own explosion. The EDUCAUSE Annual Conference held recently in Orlando offered a peek. More than 300 information sessions involving 500-plus speakers addressed the opportunities and challenges of using technology to meet new higher education requirements. A trade-show exhibit space was packed with 300 vendors. One of the biggest areas of growth is online learning. According to the 2013 Survey of Online Learning, conducted by the Babson Survey Research Group, the number of college students taking at least one online course surpassed 7.1 million during the fall 2012 term. The 6.1 percent growth rate, although the lowest in a decade, still represents 411,000 more students taking at least one online course. Back at Orange County Public Schools, Bixler and other officials offer a case study in K-12 tech preparedness.
Seven OCPS schools are in the second year of a digital curriculum pilot program (dubbed Digital Learning 1 to 1). Participating schools encompass all grade levels in varying geographic areas of the district. The five-year Digital Classrooms Plan includes measurable student performance outcomes, professional development, digital learning tools, online assessments and operational activities — at an allocated cost of $1.7 million for the 2014 to 2015 school year. Students at each school are provided the use of devices and Google Apps for Education. At Pinewood Elementary School, for example, students are using the Class Set iPad with keyboard, while Liberty Middle School has the 1:1 Lenovo Chromebook laptop and Ocoee High School has the 1:1 MacBook Air laptop, to name three. In this second year of the pilot program, parents and students have been supplied with greater how-to resources to encourage greater understanding of using digital resources. The district already offers a free keyboarding/typing software program for students. Teachers have access to on-demand training modules on a range of topics. Another item soon to be available is unlimited E-Book software access. “We are testing not only the specific device, but also the operating system the device has,” Bixler says. “We spend a lot of time in the teaching and learning aspects and the technical side of the house, making sure that together, in a collaborative effort, we’re working toward some really informed decisions. “Every district tries to discover a different way. Let’s not go out and buy 20,000 or 30,000 devices and see how it works. We started out on a very small scale. ... Ultimately, the device should support teaching and learning.” The goal is for all 187,000-plus OCPS students to have a personal device for learning. “The benefit of having every student with a device in their hand is that it opens them up to activities and resources that they would otherwise not have access to,” he says.
“Personalized learning helps the kids who need remediation plus the kids who are advanced; it allows them to excel and have opportunities that they wouldn’t otherwise have access to.” Noting the price tag for such an arrangement through the school district would cost $229 million, Bixler
K-12 school districts are in the midst of transforming the learning process.
offers this assessment: “That’s the dream.” More realistic are incremental steps toward merging technology with new curricula demands. The Florida Department of Education is creating new course descriptions for each subject in each grade, based on the new Common Core State Standards, which are largely deemed as tougher by educators. The technology must also help students and school districts navigate the new standardized testing that’s intended to eliminate the concept of “teaching to the test.” Instead, the curriculum will focus on problem solving and analytical thinking vs. fact memorization. At Hillsborough County Public Schools, the nation’s eighth-largest district, an internal reorganization has resulted in a department branch dedicated to instructional technology and training. New products are entering classrooms, such as more versatile and adaptive interactive whiteboards and 3-D printers. Creative learning spaces are taking shape. And there’s a list of new software “a mile long,” cites Joshua Sawyer, department manager of Information & Technology
- Architecture & Integration at the School District of Hillsborough County. “We’re seeing it all come through our doors,” says Sawyer, who also is one of only 27 specialists called Microsoft Innovative Educator Experts nationwide. Like OCPS, Hillsborough has plenty of plans for advanced technology. One example is the “intelligent classroom school” in the works at Turner/Bartels K-8 in Tampa, where 150 classrooms are being designed with hopes of outfitting them with the “latest and greatest” technology. “It’s kind of a reachfor-the-stars model,” he describes. Other pilot and prototypes abound throughout the district in the quest to enhance 1-on-1 learning. “Apps plus applications plus devices, and trying to make that work, is definitely a big task to accomplish. But we want to ensure that we have student success and teacher success,” Sawyer says. “Our ultimate goal, at the end of the day, is to transform learning, and how does that happen with, A, the human component and, B, the technology component?” No matter how you slice it, the pie for EdTech, as it’s labeled, is huge and growing, with name brands making recent noteworthy moves. McGraw Hill has established a partnership with StudySync, a company that creates digital English curriculum tools. Scholastic Inc. has introduced Codex, a middle school English digital curriculum. Reportedly, investors placed $1.25 billion in 2013 on the future of such education companies, with the belief that business will continue to expand as school districts incorporate more and more technology into their classrooms. For EdTech, the future has arrived — but with a caveat: Technology can only go so far. At least that’s what Bixler says — he of that long and telling title. “A great teacher with a textbook is a great teacher. A great teacher with devices and technology is a great teacher,” he says. “It all begins with a great teacher in the classroom. That is the key.”
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S
social entrepreneurship |
building community
s they say, fail often, fast and cheap, but don’t fail big. By failing, in a lot of small ways, you are able to make appropriate course corrections. Unfortunately, it is estimated that 80 percent of social businesses will fail to achieve what these companies have set out to do with regard to social impact. What are some of the key reasons for this high level of “big” failure and, conversely, what can you do to help make sure your social enterprise succeeds?
Build it and they will come
Entrepreneurs care about their businesses almost as much as they care for their own families. They have to. Their passion and drive is the impetus to create what will become a successful business that will also have positive ramifications for the greater good of society. However, just because an idea seems to be a good one, that doesn’t mean it will work. There has to be a niche for the business to fill and it needs to make sense, both from the business and societal aspects.
Lack of skills and expertise
Oftentimes entrepreneurs possess a great vision but when it comes to the execution and details, they don’t know where to start or continue. If you don’t have a background in business, as well as a thorough understanding of the societal benefit you are looking to provide, then you need to obtain it. Entrepreneurs do learn elements of their businesses on the fly, but they don’t learn the entire operation. It is essential to study everything possible about running a successful social enterprise.
One team, one win
A good leader knows that he or she must have the right team. It is important to have experts around you. As the leader, one of your primary tasks is to bring the passion, drive and energy to the business. It is also your responsibility to learn everything you can and keep the foot on the gas pedal. However, a great social entrepreneur knows that he or she needs to make an investment in the right people who will bring skills and expertise in business, finance, law, technology, marketing and other areas necessary to the enterprise.
Money, money, money
EDITOR’S NOTE: WAYNE ELSEY IS THE FOUNDER AND CEO OF WAYNE ELSEY ENTERPRISES, AUTHOR OF THE BOOK, “ALMOST ISN’T GOOD ENOUGH,” AND FOUNDER AND FORMER CEO OF SOLES4SOULS. [WAYNEELSEY.COM]
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One of the reasons many businesses fail is because the entrepreneur believes that the money will come, then expenses begin to overtake revenue until it is no longer sustainable. A good social entrepreneur knows that he or she needs to be able to make money from the outset and pay the bills. With an excellent idea, business plan and model, it is vital to closely monitor the financial bottom line and build on revenue from the outset. Having a clear and reasonable understanding of the business’s likely cash flow and managing expenses carefully while building revenue is essential. Being a social entrepreneur is difficult, but it can be exceedingly rewarding for the founder and also society as the successful business grows and prospers.
Because businesses can’t afford to stand still. The world is growing and with it are opportunities. Our high-caliber editorial content is read by C-level executives across a multitude of industries. We cover economic development, pure and simple, along with important legislative issues. Who We Are:
Privately owned. Print circulation: 10,000 copies bimonthly. Audience: C-level executives and key stakeholders in the state
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Call us or drop us a line for more information about advertising and promotional opportunities. 407-484-2016 // info@forwardflorida.com // www.forwardflorida.com.
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Innovative, User-Friendly Tool to Detect Dangerous Gas Leaks Gets its Start at UCF Finding the precise location of gas leaks in an industrial setting is a difficult problem that can cost millions in labor, resources and facility shutdown time. Leaks, such as those involving hydrogen, an odorless, colorless, and highly flammable gas, are challenging to detect and can also result in property and environmental damage, injuries and death. Although electronic detection devices and soapy water-type solutions have been used to detect leaks, facilities personnel require an easy-to-use detection tool that immediately and visually pinpoints the location of a hydrogen gas leak. In fact, this new tool exists today in the form of a passive color-changing tape that got its start at the University of Central Florida. HySense Technology, a client of UCF’s Venture Accelerator and Tech Transfer programs, produces and markets UCFlicensed intelligent tape that changes color in the presence of hydrogen to detect leaks and improve safety. The tape can be applied to or wrapped around pipes, flanges, fittings, valves, or access panels in the aerospace, chemical, energy, and gas industries. UCF researchers at the Florida Solar Energy Center began work on this breakthrough technology under a grant from NASA. Use of hydrogen as industrial feedstock in the chemical industry and fuel for space
exploration carries the risk of a potentially destructive accident if a hydrogen leak isn’t pinpointed and quickly fixed. Hydrogen can burn at more than 5,000 degrees Fahrenheit and can ignite with as little as a static spark. By wrapping leak-susceptible areas with the tape, leaks are made visible thanks to the color change that occurs in the tape when hydrogen is present. The color-changing concept for a visual cue was conceived by UCF’s Ali Raissi, Ph.D., who developed a chemochromic pigment, a type of pigment that changes color in the presence of a particular chemical, with a team of scientists including Nahid Mohajeri, Ph.D., who founded HySense Technology and introduced the invention to the market. The success of Dr. Mohajeri of HySense and others like her in commercializing inventions is an example of what can be achieved with UCF I-Corps, an NSF-funded program of the UCF Center for Innovation & Entrepreneurship. In this effort, UCF, together with NASA Kennedy Space Center and HySense Technology, was recently recognized by the R&D Magazine for developing and producing one of the top 100 innovations of the year. For more information, visit hysensetechnology.com.
Ali Raissi, Ph.D., Director, Advanced Energy Research Division, FSEC, operates one of the specialized devices he designed and built to produce uniform and reproducible smart tapes. This particular unit imparts static charge on the host polymer upon which the chemochromic hydrogen sensitive particles are embedded. Photo courtesy of Nick Waters, FSEC
This shows a typical application where the location of the hydrogen leak (dark spot on the tape) is clearly visible.
Do You Have an Invention? Would You Like to Explore its Validity in the Marketplace? Introducing UCF I-Corps UCF is Transforming Innovations that Impact Society Selected as one of 15 universities, UCF will be delivering the National Science Foundation’s (NSF) flagship program, Innovation-Corps (I-Corps). • Designed to bring scientists and researchers outside of the lab to explore the potential and impact of their ideas. • Beginning in January 2015, entrepreneurial teams will participate in a hands-on, 10-week program that will allow them to identify a business model and assess the commercial value of their research idea. • UCF I-Corps alumni desiring to continue down the path from idea to market are provided with business, technology and management development support through the university. • UCF I-Corps teams are also in a path to successfully receive further funding ($50K) and other NSF funded grant programs.
Are you ready to drive your idea to enterprise? We are now accepting applications from researchers, students, and mentors throughout the state of Florida. Visit our website for more details.
icorps.cie.ucf.edu
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G
global pulse |
international news
A
s reported by FORWARD FLORIDA, the state’s ports are gearing up for a bigger share of the global trade pie. In a new report from Florida TaxWatch, it cites the emergence of more efficient trade and logistics hubs as a huge economic development driver for Florida given its location and easy access to the rest of the U.S., Central and South America, the Caribbean, Europe, Africa and Asia. Since trade cannot live by ports alone, the emergence of intermodal centers is critical for the efficient movement (transfers) of cargo. THE CENTRAL FLORIDA INTERMODAL LOGISTICS CENTER in Winter Haven hosted its ceremonial grand opening for its first 318-acre terminal on Oct. 16. (Page 16) Operated by Jacksonville-based CSX, the terminal is surrounded by 930 acres and plans include up to 7.9 million square feet of warehouse distribution centers, light industrial and office facilities. This project is a huge spoke in the state’s global trade wheel prospects ultimately serving Orlando, Tampa and South Florida markets. Port Tampa Bay’s board of commissioners approved a $24 million crane purchase project in late October. The two 65-ton gantry cranes were contracted to China’s
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SHANGHAI ZHENHUA HEAVY INDUSTRIES CO., which will construct and deliver the cranes in first quarter 2016. The port’s container terminal currently covers 40 acres, but expects full build-out to 160 acres with throughput capacity of 1 million. The crane purchase was funded partially with $12 million in supplementary funds from the state. THE TAMPA BAY EXPORT ALLIANCE trade mission to Santiago, Chile, will take place Dec. 1 to 5. Chile is Florida’s fourth-largest export destination and, due to free trade agreements, 90 percent of U.S. exports enter duty free. The mission will be led by Commissioner Karen Seel, chair of the Pinellas County Board of County Commissioners, Commissioner Lesley “Les” Miller Jr., Hillsborough County Board of County Commissioners, St. Petersburg Mayor Rick Kriseman and Tampa Mayor Bob Buckhorn. Targeted exports for Chile include health-care, medical equipment and devices; construction and infrastructure; safety and security equipment; irrigation and water resource technology; food processing and packaging equipment; consumer goods; and travel and tourism services.
All Aboard Florida, a $2.3 billion rail project, could leave the station by the end of 2016.
In other trade mission updates: Florida Secretary of Commerce Gray Swoope led an export sales mission to Panama, Oct. 5 to 7. Total merchandise trade between Florida and Panama totaled $2.3 billion in 2013 and is expected to grow. The PANAMA CANAL EXPANSION is expected to be complete in early 2016. Trade routes are being scrutinized globally. New Canal rates are expected to be announced in December for the shipping lanes.
COPA AIRLINES, flying direct from Tampa International Airport to Panama City, has added daily flights in November for the upcoming holiday season. The airline began nonstop service less than two years ago, and in that time traffic has doubled.
In other transportation news, ALL ABOARD FLORIDA, a subsidiary of Coral Gables-based FLORIDA EAST COAST INDUSTRIES, broke ground in late October on its Fort Lauderdale train station. Passenger service in South Florida is expected to be operational by end of 2016, with its second phase from West Palm Beach to Orlando expected to start in 2017. Construction is ongoing for its downtown Miami station, called MiamiCentral. According to media reports, the company has recently applied for $1.75 billion in a private activity bond allocation from the U.S. Department of Transportation. The $2.3 billion rail project is estimated to have a $6.4 billion economic impact. PORT CANAVERAL is funding a study to look at where a potential train station could be located in Brevard County. The Canaveral Port Authority is going to fund a study conducted with the Space Coast Transportation Planning Organization to determine the viability of a Brevard station and where it would be located. Moody’s Investors Service has upgraded Port Canaveral’s bond rating, citing low leverage, cruise growth, stable finances and proactive capital plan management. The 35-year lease with UAE-based Gulftainer to operate the port’s cargo business was viewed favorably by Moody’s. Gulftainer will invest $100 million in infrastructure, equipment and labor.
Orlando-based IDEAS completed a strategic agreement with GLOBAL CEO CLUBS CHINA to begin marketing IDEAS China. IDEAS Founder and Chairman Bob Allen said, “Our joint agreement empowers GCC to market our IDEAS China brand to media and experienced design clients in the entertainment, enterprise and health-care verticals across the country and we’re excited about the potential.”
ICELANDAIR announced it will resume service from Orlando International Airport starting September 2015. Nonstop flights to Iceland will operate four days a week to its main hub at the Keflavik International Airport near its capital of Reykjavik, with connections to more than 20 destinations in Europe. The airline was the first international carrier at OIA in 1984.
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H
how2 |
expert tips and advice
THE NEW RULES FOR NONPROFITS
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F
lorida nonprofits are facing an assortment of new restrictions and regulations, which went into effect on July 1, 2014. House Bill 629, commonly referred to as
Florida’s “Charity Reform Law,” was developed by Florida’s Department of Agriculture and Consumer Services Commissioner Adam Putnam, shortly after a study by the Tampa Bay Times, which identified a Florida charity as the worst charity in the nation, citing massive fraud and squandering of charitable funds. The law is intended to protect the integrity of Florida nonprofits by combating fraud and weeding out corrupt organizations.
UPDATES TO CURRENT LAWS
Some organizations may already find themselves in compliance with certain changes, including the now mandatory conflict of interest policy. Typically, when filing their Form 990, nonprofits are asked to disclose whether they have a conflict of interest policy and how it is enforced. Under the new legislation, organizations registered with the Department of Agriculture are not only required to have a conflict of interest policy, but also to have its directors, officers or trustees annually certify that they are compliant with the policy. Another regulation that has been altered concerns the disclosure requirements for charitable solicitations. Currently, nonprofits are required to use disclosure requirements on solicitations, but under the Charity Reform Law the disclosure requirements will be mandatory on an organization’s website where the donation is being solicited, usually a “donate here” page or form that asks for personal information in order to complete the donation request. This includes third-party online donation processors as well. The legislation also outlines new, strict guidelines for updating information with the Department of Agriculture. In the past, updates ranging from an organization beginning to solicit contributions in new states to disciplinary action taken against board members could be disclosed annually with renewal of its registration. Organizations now must file an update within 10 business days of the change or else face penalties, such as automatic suspension of its registration. CHANGES IN FINANCIAL REPORTING
In lieu of a financial statement, any charitable organization or sponsor may submit an IRS Form 990. IRS Form 990s
submitted by charitable organizations or sponsors that receive more than $500,000 in annual contributions must be prepared by a CPA or a professional. Nonprofits with annual revenue exceeding $1 million that spend less than 25 percent of expenses on program services will now be obligated to file more detailed financial reports, including required reporting on how revenue is being allocated to areas such as fundraising and travel. Employee salaries will also be placed under more scrutiny, specifically consultants or service providers with salaries above $100,000 annually. The new law will also crack down on the filing of annual registrations and financial statements with the Department of Agriculture. Parent organizations that include chapters or branches are still able to file consolidated financial statements. However, they must now submit an individual Form 990 for each chapter or branch. In the past, an organization was allowed to file a 60-day extension for the submission of its annual registration or financial statement while the current registration remained in effect. Under the new law, nonprofits are no longer able to file an extension for annual registrations and will only be able to extend filing financial reports if it is deemed for a “good cause.” Failure to file either of these will result in automatic expiration of the organization’s registration. COMBATING FRAUD
One of the main goals of the new legislation is to combat fraud. Measures include a ban on charitable solicitations by any organization with an officer, director or trustee who has committed a felony in the state of Florida. Similarly, organizations that have violated certain
laws in other states will be banned from soliciting funds in Florida. The law also requires that professional solicitors, whether they are an internal part of an organization or a third party, follow strict registration, licensing and disclosure requirements. Professional solicitors who operate like telemarketers will be required to provide fingerprints for background checks if they collect sensitive financial information, submit scripts used to conduct solicitations and report the percentage of contributions collected that will be provided to the charity. According to the Department of Agriculture’s website, the Florida Charity Reform Law will also create an interactive database where the public can access information on charities. This includes leadership, location, contact information, financial reports and any violations in order to help people choose their charities wisely. THE EFFECTS ON FLORIDA NONPROFITS
Though the law will affect all nonprofits throughout the state, the effects can vary significantly depending on the size of the organization. Further, the Department of Agriculture has not released any information on how the law will be implemented and enforced. This can lead to confusion on what action a nonprofit must take. One important step to ensure a nonprofit is compliant with the new law is to confirm that the organization is properly registered to raise funds in the state of Florida through the Department of Agriculture. Unless an organization is a government agency, or falls into a specific category of religious or educational institution, it must have the proper permit or be exempt from requiring a permit. Once obtained, this status must be renewed annually. The Department of Agriculture will release the final proposed rule for public comment soon and informational webinar(s) will be available through a partnership with The Department of Agriculture, The Florida Philanthropic Network and the Florida Nonprofit Alliance. To understand the new financial reporting rules under the Charity Reform Law, you can seek the advice of a Certified Public Accountant. However, you should also consult with your attorney regarding the legal implications of the new law. EDITOR’S NOTE: ERICK KEPFER, CPA, IS AN AUDIT SENIOR MANAGER AT CROSS, FERNANDEZ & RILEY, LLP (C/F/R). HE CO-LEADS C/F/R’S NONPROFIT PRACTICE GROUP AND PRIMARILY WORKS WITH NONPROFITS SERVING A VARIETY OF SECTORS.
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legislative update |
policy making in action
TALLAHASSEE
State’s economic recovery propels incumbent to re-election in tight race. FLORIDA GOVERNOR. Gov. Rick Scott (R) shrugged off late polls that suggested he was trailing in his race for re-election and rode a surging state economy to a narrow victory and another four years in office. With virtually all votes counted, Scott defeated former Gov. Charlie Crist, a Republican turned Democrat by 48 percent to 47 percent, by about 70,000 votes out of 5.9 million cast. The race was one of the most closely watched gubernatorial contests in the nation, in large part because it had so many unusual facets. Both men had taken unique paths leading up to the contest. Scott is an extremely wealthy businessman who was a political novice when he ran for governor 2010. Despite legal troubles encountered by his former company, Scott shook off the inevitable negative ads to win an extremely tight race four years ago. Crist, a former prosecutor known as “maximum Charlie,” was first elected to the state Senate as a Republican in 1992 (a victory credited with ending 128 years of Democratic rule in that chamber). He won races for state attorney general in 2002 and governor in 2006 as a Republican, before becoming an independent for his unsuccessful 2010 U.S. Senate bid. In four short years, he morphed into the Democratic Party standard bearer for his old job. Unsurprisingly, the multiple twists and turns hurt both candidates’ favorability ratings, but someone had to win. On Nov. 4, it was Scott.
Newly re-elected Gov. Rick Scott
THE REAL WINNER. Long before the polls closed, one clear winner already had emerged: Florida’s television stations. As of Nov. 1, almost $105 million had been spent purchasing TV ads for the two main candidates, and — not surprisingly given its “battleground” status — a disproportionate amount was in the Super Region or, what the political world likes to call, the I-4 Corridor. Some interesting research by the
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Tampa Bay Times found Tampa Bay and Orlando were the top two markets for ad purchases, with the campaigns spending a combined $30 million and $27 million, respectively, since March. Overall, Scott outpaced Crist in both markets ($19 million to $10 million in Tampa Bay and $17 million to $10 million in Orlando). However, things got a bit tighter in the election’s last week, with Crist outspending Scott in Orlando and the governor holding a small lead over the challenger in Tampa Bay.
WASHINGTON CONGRESS ON HOLD. The Florida Legislature has been in session for only a handful of days since the regular legislative session ended last spring — but state lawmakers still seem far more productive than their counterparts in the nation’s capital. The official pre-election recess began in early October, but Congress did very little during the brief period between the end of the August recess and the beginning of the latest one. In fact, their main accomplishment was passing a continuing resolution funding the government through Dec. 11. Congress passed the funding bill in mid-September, primarily to avoid making politically sensitive choices before the election. The Super Region’s lawmakers generally were supportive of the measure, as nine of the 14 House members and both senators — Bill Nelson and Marco Rubio — voted for it. The prospects for additional legislative activity during the lame duck session that began after Veterans Day are slim. Since the Republicans retained their House majority and took back control of the Senate on Election Day, they likely will wait until after Jan. 1 — when they have complete control of Congress — to begin pushing a legislative agenda.
UP IN SMOKE (BUT NOT STAMPED OUT ). On
Election Night, a proposed constitutional amendment legalizing medical marijuana in Florida had almost a million more people vote for it than voted against it. Nonetheless, it lost. Florida requires proposed amendments to garner 60 percent of the vote in order to pass. While 57.5 percent may look impressive, it wasn’t enough. The results were, however, encouraging enough for supporters to begin thinking about taking the fight to the Legislature and, if necessary, back to the ballot. Trial attorney John Morgan, one of the amendment’s biggest proponents, on election night tweeted: “This is only the first battle. We will win this war!”
NO ELECTORAL SUSPENSE. Like their brethren in Tallahassee, there was no nail-biting for members of the Super Region’s congressional delegation. None of the 14 delegation members faced serious threats in their races, and neither Nelson nor Rubio had to stand for re-election this year. Rubio’s current term is up in 2016, and Nelson’s term expires after 2018.
LEGISLATIVE RACES. Suspense was largely confined to the governor’s race. Of the 58 state House seats in the Super Region, including the nine where the incumbent was retiring, more than half of the candidates (32) faced either no opposition or third-party candidates only. Another 12 were considered likely to remain in the incumbent party’s hands, leaving a mere 14 races (24 percent) competitive to any degree. The House may have set the bar high for non-competitiveness, but the state Senate managed to clear it. Of the 20 Super Region senators, only 12 had to stand for re-election this year. In nine of those cases, there was no opposition or a third-party candidate only. In the other three, the incumbents were set to win re-election. Bottom line, there is no suspense in Tallahassee regarding whether the Republicans will retain their stranglehold on the Florida Legislature.
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K
keeping score |
business of sports
BOWLED Over Florida’s Bowl Games put up big numbers and the newest one has a special purpose.
CURE BOWL. Some decry the ever-expanding number of college football bowl games, while others point to the economic benefits for the host cities, the experience for the players and the entertainment value for students, alumni and other fans. But, the announcement last month of the new Cure Bowl, set to debut in 2015 in Orlando, reminded us that (with apologies to Dr. Seuss) bowl games, perhaps, mean a little bit more. First unveiled back in mid-April, the new bowl game picked up added momentum last month when Fort Lauderdale-based AutoNation — the nation’s largest auto retailer — signed on as the “name” sponsor of the game, which will feature teams from the American Athletic and Sun Belt conferences. The AutoNation Cure Bowl, organized by the Orlando Sports Foundation, will be played at the renovated Citrus Bowl stadium and televised on the CBS Sports Network. And, while all bowl games raise money for charity, the AutoNation Cure Bowl is unique in that it will have a single focus: finding a cure for breast cancer. The Breast Cancer Research Foundation will be the main recipient of the bowl’s charitable contributions.
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The Cure Bowl will become Florida’s ninth bowl game (the Miami Beach and Boca Raton bowls begin play this year) and the fifth in the Super Region. THE NAME GAME. Ever since the mid-1980s, bowls have
rushed to line up corporate partnerships. Name sponsors pay handsomely for what they view as a strong marketing opportunity, which is vital to a game’s ability to offer attractive payouts to participating teams. The six Florida bowl games played last year paid out more than $60 million total to participating teams. Recently, the corporate names have begun muscling out the original, civic-minded names. The 68-year-old Gator Bowl in Jacksonville is now the TaxSlayer Bowl, and the game played annually at Tropicana Field is on its fourth name in seven seasons of existence: the Bitcoin St. Petersburg Bowl. A single move often can set off a chain of events. When Miami’s Orange Bowl announced that Capital One would become its title sponsor this season, Orlando’s flagship game saw its 14-year relationship with the financial giant end. The game reclaimed its original moniker, found a
new partner, and the former Capital One Bowl has become the Buffalo Wild Wings Citrus Bowl. That left the Tempe, Ariz.,-based Buffalo Wild Wings Bowl in the lurch. For now, that game is doing something quaint: it’s foregoing a name sponsor. What began in 1989 as the Copper Bowl is now, simply, the Cactus Bowl. Let’s see how long that lasts. RENOVATION COMPLETE. Before leaving bowl games, it should be noted that much-anticipated $208 million renovation of Orlando’s Citrus Bowl stadium was set to be completed before Thanksgiving. A cornerstone of Mayor Buddy Dyer’s vision of a first-class sports, arts and entertainment complex in downtown Orlando, the stadium hosts not only three bowl games and occasional other neutral-site college football games, it also will be home to the Orlando City Lions’ inaugural Major League Soccer season next year. UCF GRADUATION RATES. The University of Central Florida clearly takes the “student” part of the term “student-athlete” very seriously. The university athletics program had a graduation success rate of 95 percent during the 2013-14 academic year, tops among public universities and tied for fifth overall. The Super Region’s other two universities playing football and other sports in the NCAA’s highest division also enjoyed considerable success. The University of Florida and the University of South Florida both had an 83-percent success rate. Elsewhere in the Super Region, Stetson University posted a strong 91-percent rate.
Two of Florida’s other major powers also fared well. The University of Miami had a 92-percent graduation success rate while Florida State University enjoyed 84-percent success. Strong success rates are important because NCAA rules now penalize institutions for failing to meet minimum graduation standards. Lost scholarships often equal fewer wins and, ultimately, less revenue for the penalized schools. PREVENTING CONCUSSIONS. The sports
world is increasingly focusing on the long-term effect of concussions, and an Alachua company and The Corridor have teamed up with the University of Florida to conduct a unique study on the subject. The $575,000 study, paid by a grant from Banyan Biomarkers and matching funds from The Corridor, is allowing UF researchers to place sensors inside the helmets of 30 Gator football players to study the full impact of collisions on the football field to better understood which hits lead to concussions. The results will help allow for early intervention in a concussion situation and, of equal importance, to be certain a player is ready to return to the field after recovering. MONEY TALKS. The recurring theme in
baseball is that, to be competitive, a baseball team has to be from a big media market that can provide a lucrative local television contract and have a stadium that generates significant revenue. This year’s Kansas City Royals didn’t get the memo, pushing the far-wealthier San Francisco Giants to seven games before falling in the World Series.
Neither, for that matter, did the 2008 Tampa Bay Rays, a team that came from nowhere to make the playoffs for the first time in franchise history that year, and become only the fourth team in the expansion era to reach the World Series in its playoff debut (the Mets, Padres and Marlins were the other three). Still, heartwarming as these littleteam-makes-good stories are, it’s hard to deny that “big-market” teams enjoy some advantages. The most recent example is none other than the man behind the Rays’ phenomenal success in recent years: manager Joe Maddon. Maddon surprised many observers last month when he exercised an out clause in his contract and abruptly left the Rays. The Rays, whose financial constraints are significant, already had found a way to ensure Maddon’s salary was in the top half of all major league managers. Not bad for a team with a problematic stadium in a media market outside the Top 10. But, when Maddon became a free agent, a team in the number-three media market with one of the sports’ most legendary (and revenue-rich) stadiums — the Chicago Cubs — pounced quickly. Barely a week after his departure from the Rays, the Cubs signed Maddon to a contract that will make him among the five-highest paid managers in the game. The Cubs obviously hope Maddon can perf orm the same magic on the North Side that he performed in Tampa Bay. There is a “rich” irony in all this. The Cubs have not been to a World Series since 1945, and in the intervening years have made the playoffs five times. That’s exactly one more time than the Rays, which didn’t even exist until 1998.
Tampa Bay Rays will be looking to score big as they hire a new manager. Just as Blake Bortles excelled on the field, UCF has excelled at graduating its athletes.
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Bringing business and civic leaders together to work on the big issues that span our seven-county region is what the Central Florida Partnership is all about. Every day, Central Florida moves closer to achieving its full potential as a globally-recognized, high-performing economy. The Partnership makes it possible by identifying the opportunities, thinking big and taking action—by moving “Ideas to Results.” Join us by investing in our region and moving our community forward. Call Amanda Muley at 407.835.2512 or find out more at www.IdeasToResults.org.
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people and places
WEEKI WACHEE SPRINGS STATE PARK The world-famous Weeki Wachee mermaids have been entertaining visitors since 1947. In addition to underwater performances, the park offers a river boat cruise, wildlife show and the only spring-fed water park in Florida.
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OCTOBER | NOVEMBER 2014 • FORWARDFLORIDA.COM
Looking for a competitive edge?
Through the Florida High Tech Corridor Council’s Matching Grants Research Program, high tech companies partner with scientists from three worldrenowned research universities to develop emerging technologies. The result? A competitive edge that puts their businesses in the fast lane.
Accelerate
To learn how to your high tech business, visit
FloridaHighTech.com.
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Comprehensive Diabetes Care From The Experts You Trust Ranked 13th in the nation in diabetes & endocrinology. Call (407) 603-3866 or visit FHdiabetes.com to learn more.
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