FORWARD Florida Magazine ED#3 by Forward Florida

HOW2

RETAINING TECHNICAL TALENT SPECIAL REPORT

STETSON FOOTBALL SCORES BIG WELLNESS

SIMPLE WAYS TO RELIEVE STRESS

ISSUE 3 • 2013 $5.95

RISING PROMINENCE Growth and emergence at UCF and USF

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ECONOMIC UPDATES FOR 23 COUNTIES

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UNIVERSITY OF FLORIDA PRESIDENT BERNIE MACHEN AND HIS MISSION: TOP 10 STATUS

forwardflorida.com

BEST RELIABILITY IN FLORIDA 15 YEARS IN A ROW – Based on 2012 data provided to the Florida Public Service Commission

Orlando — one of the fastest-growing cities in the U.S. — trusts us for reliable power. That’s why for the 15th year in a row, OUC—The Reliable One has lived up to its name by providing the most reliable electric service in Florida and finishing well ahead of the state’s investor-owned utilities in key performance areas that measure overall electric distribution reliability.

WWW.OUC.COM/RELIABILITY

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CONTENTS 50

DEPARTMENTS

10 COPY DESK

NEWS, NOTES AND COMMENTARY

BY 16 COUNTY COUNTY

SPANNING 23 COUNTIES AT A GLANCE

PARTING SHOT

PEOPLE AND PLACES ACROSS THE SUPER REGION

22 PERSPECTIVES

LEADING POINTS OF VIEW

SECTIONS

24 HOW2

EXPERT TIPS AND ADVICE

AVOIDING PATENT TROLLS

40 42 47

Small topic, big discovery: An enterprising company has designs on impacting fashion with customizable buttons. Plus: graphene’s new versatility, emerging companies seeking seed money, the Google Lunar XPRIZE and Daytona Beach business incubation.

GIVING THEIR ALL A snapshot of Central Florida public charities shows lots of strategic activity plus an improving picture.

LIMITING EXPOSURE Yes, business liabilities can become your personal liabilities—if you don’t pay attention.

RETAINING TALENT It’s not about luck or misfortune. Executives have a powerful retention solution at their fingertips.

PAY OR PLAY ON HOLD The employer shared responsibility penalty has been delayed in the Patient Protection and Affordable Care Act. Now what?

4 W EDITION 3 / 2013 • FORWARDFLORIDA.COM

GROWING IDEAS INTO ENTERPRISES

MADE TO ALTR

The White House, Congress and individual states are taking action on potentially hurtful activity across the business landscape. So should you.

INNOVATIONS

LEGISLATIVE UPDATE

WELLNESS

YOUR PERSONAL BOTTOM LINE

POLICY MAKING IN ACTION

SUMMER SWEAT Tough decisions about student loans, affordable care, the Internet tax and more put legislators on the hot seat.

LIGHTENING THE LOAD

Simply put, manage stress … or it will manage you.

DRIVEN to make a difference

it all started in 1963, when the tampa Hillsborough expressway authority (tHea) was created to help meet tampa Bay’s growing transportation needs. Today THEA is a key link in our region’s transportation system: independent, locally operated and focused on building our community on and off the road.

innovations in transportation.

community Partner. community Builder.

• World’s first and only Reversible All-Electronic Tolling (AET) Lanes—A winner of more than 20 national and international awards.

• University of South Florida’s Selmon STEM Scholarship Program.

• First authority in Florida to convert its entire system to AET.

driving Local economy. A recent study by the Center for Urban Transportation Research at the University of South Florida showed: • The Selmon Expressway has generated $1.4 billion in business sales.

• Annual bridge building competition among local high schools. • Swann Avenue Underpass beautification project. • Brandon Parkway Public Art Project. THEA is a leader in transportation and a partner in our region’s progress, helping Tampa Bay move forward on the road to tomorrow.

• THEA has created over 10,000 jobs in many industries.

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FEATURES

ABOUT US

/ who we are

FLORIDA HIGH TECH CORRIDOR AND SUPER REGION As the lines separating traditional industries have blurred, so too have the geographic borders inside the 23-county Florida High Tech Corridor region. Drawn together by partnerships in industry, education, workforce and economic development, the organizations of Florida’s Super Region are collaborating across county lines to drive Florida’s new economy—one based on high tech sectors and innovative jobs of the future.

COVER

POSITION OF PREEMINENCE University of Florida President Bernie Machen and His Mission: Top 10 Status Cover Photo: Dave Johnston of Johnston Photography

RISING PROMINENCE With their hands on the wheel and their eyes on the future, presidents Judy Genshaft and John Hitt are steering their universities toward economic greatness.

Stretching across the center of the state from Tampa Bay, through Metro Orlando to the Space Coast and up to Gainesville, the Florida High Tech Corridor makes up the 10th largest economy in the U.S., with a technology workforce of more than 230,000 people. Also driving its growth are three world-renowned research universities: the University of Central Florida, University of South Florida and University of Florida. Florida’s Super Region makes up the 40th largest metropolitan economy in the world, with the potential to successfully compete not only nationally, but also across the globe.

FORWARD FLORIDA FORWARD Florida Magazine is the definitive resource for and about economic development and the emerging growth companies of Florida’s Super Region.

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The bi-monthly business magazine is published in cooperation with the Central Florida Partnership, Florida High Tech Corridor Council and Tampa Bay Partnership. Including Tampa Bay and Metro Orlando—two FLORIDA regions that alone account for a $269 billion gross regional product—the magazine covers 23 counties, an area promoted 20 13 M ED IA G U ID E as Florida’s Super Region. The magazine is pro-business, pro-entrepreneurship and pro-economic development, with an emphasis on business, technology, education and legislative issues. PUBLISHING

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RS CENTRAL FLO FLORIDA HIG RIDA PARTNERSHIP H TAMPA BAY TECH CORRIDOR COU PARTNERSH NCIL IP

SPECIAL REPORT TEAMWORK TOUCHDOWN The Return of Stetson University Football.

The mission of FORWARD Florida is to promote the existing business and community strengths and assets of the Super Region, and to foster effective growth, strategic alliances and general economic development. The magazine showcases the region’s vibrant business environment while providing its own blueprint for success. As part of that mission to be the “Voice of Florida’s Super Region,” FORWARD Florida regularly devotes coverage to topics that mirror the region’s chief industries while also addressing topics and issues that resonate among key stakeholders. Distribution of the magazine includes direct mail to high C-level executives, along with civic and community leaders and policy makers across the 23 counties, Tallahassee and Washington, D.C. Out-of-market distribution also includes prominent site selectors throughout the U.S. Additionally, there is bonus distribution at a number of major business events.

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THIS IS A MAP OF TAMPA BAY.

reporting for duty: an agile talent pool. Tampa Bay’s qualified talent force is at the ready. Software developers, manufacturing technicians, biotech engineers and more make up a growing, competitive workforce that’s ready to get down to business — your business.

TRAINING THE RIGHT PEOPLE, THE RIGHT WAY.

Tampa Bay is home to 80 post-secondary schools, including technical and two-year colleges and the University of South Florida, a global research institution. Every semester, the area’s best and brightest STEM scholars enter our workforce equipped with the skills and training that give our super-region a super-competitive edge.

TIME TO Put your business on our map.

Doing business in Tampa Bay means you’ve got the power of an educated workforce behind you — and countless economic opportunities in front of you. Let us show you just how hard we work.

Call Jennifer Taylor at 813.872.2809 or visit us at TampaBay.org today.

THE VOICE of FLORIDA’S SUPER REGION ™

FLORIDA PUBLISHING PARTNERS

PRESIDENT JACOB V. STUART

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8 W EDITION 3 / 2013 • FORWARDFLORIDA.COM

“If I knew then what I know now, it would have taken much less time to grow my business to where it is today.”

ENTREPRENEURS ACADEMY APPLY ! TODAY

Building Strong CEOs Envisioned by the Board of Directors of Orlando, Inc., composed of advanced entrepreneurs and those who serve entrepreneurs, the Entrepreneurs Academy was created to help entrepreneurs accelerate their connections to the critical resources needed to innovate and grow their businesses. Two Entrepreneurs Academies are scheduled for 2013: Wednesday and Thursday, September 25 and 26, 2013; Wednesday and Thursday, October 9 and 10, 2013. These exclusive, two-day, interactive sessions will be Sponsored in part by:

held at Rollins College in Winter Park, Florida. If you are an entrepreneur with 2-25 employees and are looking for this type of dynamic learning environment, apply today! Tuition for the Entrepreneurs Academy is $395 for non-members and $195 for members of Orlando, Inc., and for business owners/residents of the City of Orlando. Visit www.orlando.org for details or call José Fajardo, Executive Vice President, Orlando, Inc., at 407.835.2513. In Partnership with:

COPY DESK / news, notes and commentary

Quite a FEAT LAKE COUNTY’S FLORIDA ENERGY AND AEROSPACE TECHNOLOGY ( FEAT ) PARK IS primed for development, thanks to Duke Energy, which selected it as the first Site Readiness location in Florida. Duke Energy’s Site Readiness Program is designed to identify, evaluate, improve and increase awareness of prime industrial sites in the company’s service territory. Duke Energy later will service the park and its businesses with power. FEAT Park was chosen after a comprehensive site inventory assessment of more than 60 sites and will be actively marketed

The goal of the Duke readiness program is to identify, evaluate, improve and increase awareness of prime industrial sites.

to site selectors and corporate decisionmakers. The 640-acre parcel, owned by the City of Leesburg, borders the interchange of Florida's Turnpike and County Road 470. While Lake officials call the effort a win for the county, Florida Secretary of Commerce Gray Swoope views it as a victory for the state. “This program is a progressive effort toward making communities more competitive and attractive for new industry and jobs," says Swoope.

Era Dawns for Eastern Florida State

Eastern Florida officials hope the new name brings recognition.

EASTERN FLORIDA STATE COLLEGE HAS ARRIVED, OFFICIALLY REPLACING BREVARD Community College. According to school administrators, the new name will build on the excellence of BCC’s past and ask students and the community to “look to the east” for nationally recognized academic programs. Such programs include two new bachelor’s degrees in general business management and health care management, starting in August—the move that essentially transformed BCC into Eastern Florida State College. The college

plans to offer another eight bachelor’s degrees in August 2014. The hope is that Eastern Florida becomes a household name, letting students “know the college is dedicated to their individual needs and gaining the community’s support for its new direction,” said Eastern Florida President Dr. Jim Richey. Eastern Florida joins 22 other institutions in the 28-member Florida College System that have changed names in recent years to reflect the addition of baccalaureate degrees and achieving state college status.

Aspiring Entrepreneurs Need Apply THE CREATIVITY AND INNOVATION THAT DRIVE SUCCESSFUL BUSINESSES ARE THE cornerstones of the new Entrepreneurship Certificate Program at Polk State College in Winter Haven. The four-class, 12-credit online program is intended for people with an entrepreneurial mindset, including small business owners or people creating startups. Also, it’s designed for anyone who wants to think “outside the box,” according to Program Coordinator LaTrice Moore, professor of business administration. Students learn to assess the fundamental skills necessary to start and operate their

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The goal at Polk State: increase Florida’s global competitiveness as a destination for business, capital, talent, innovation and entrepreneurship.

own businesses, collaborate with others to identify business opportunities, join entrepreneurial ventures or work in an entrepreneurial capacity for an established company. They’ll gain the skills to interpret financial data and

make informed decisions about operating performance, understand legal and regulatory issues, recommend appropriate marketing strategies, apply leadership skills to build relationships in the workplace and develop a comprehensive business plan. With a few exceptions, all of the content is completed online. Upon completion, students have the option to proceed with an associate degree in business administration and/or a bachelor’s degree in supervision and management. In addition, the program addresses the first goal of Florida’s Job Creation Plan developed by the Department of Economic Opportunity: increase Florida’s global competitiveness as a destination for business, capital, talent, innovation and entrepreneurship.

COPY DESK / news, notes and commentary A Good TRADE for Manufacturing

DESPITE BEING HOME TO APPROXIMATELY 14,500 MANUFACTURERS THAT EMPLOY almost 329,000 people, Florida has thousands of manufacturing jobs that remain unfilled because employers cannot find people with the necessary skills. That reality is about to change. As part of a four-year, $15 million grant from the Department of Labor last September, the Florida TRADE (Transforming Resources for Accelerated Degrees and Employment) Advanced Manufacturing Consortium is now taking shape. Ultimately, the result will be 2,600 newly skilled workers—trained, employed and eligible for advancement. The consortium is combining the resources of 12 state and community colleges throughout Florida to create a cohesive training system, spearheaded by Grant Director Gary W. Graham at St. Petersburg College. The Florida TRADE program targets unemployed workers who have lost their jobs due to foreign competition, along with students, veterans and employees looking to upgrade their current skills or learn new ones. The accelerated training can be completed in three to six months, depending on the program. Consortium members have partnered with major manufacturers, including Lockheed Martin, Coca-Cola and Florida Power & Light, in addition to workforce boards and manufacturing associations. Many of these partners have agreed to provide internships for students, with the goal of hiring those who perform well. Students in the program not only develop skills to achieve nationally recognized industry certifications, but they also can earn free college credits toward an associate degree.

This fall, participating colleges are rolling out pilot programs and information sessions. Programs will be in full swing by the end of 2013 and continue through 2015.

who require a high level of care whether they face particularly difficult surgeries, challenging conditions or increased risks due to other health problems or age. Objective measures such as In the annual U.S. News Best Hospitals rankings, Florida Hospital patient survival and safety was recognized nationally in eight specialties. data, the adequacy of nurse staffing levels and similar metrics largely determined the rankings in most specialties. The specialty rankings and data FLORIDA HOSPITAL HAS BEEN RECOGNIZED were produced for U.S. News by RTI AS ONE OF THE BEST U.S. HOSPITALS FOR International, a research organization 2013-14 by U.S. News & World Report, in based in Research Triangle Park, N.C. Using addition to being named No. 1 in the state. the same information, U.S. News produced The annual U.S. News Best Hospitals the state and metro rankings. rankings, now in its 24th year, recognize Also at Florida Hospital, in an event that hospitals that “excel in treating the most literally moved walls, the Florida Hospital challenging patients.” This year, the hosCancer Institute installed the latest pital was recognized nationally in eight invention in non-invasive brain surgery specialties: Cardiology and Heart Surgery, to treat conditions that previously were No. 32; Diabetes and Endocrinology, No. considered inaccessible or inoperable. 28; Gastroenterology and G.I. Surgery, No. Elekta’s Leksell Gamma Knife® Perfexion™ 47; Gynecology, No. 10; Nephrology, No. will reduce treatment time, increase 31; Neurology and Neurosurgery, No. 38; precision and treat multiple brain lesions Pulmonology, No. 34; and Urology, No. 36. in a single treatment session. At 25 tons, Florida Hospital was categorized as “highthe machine’s installation required the performing” in Cancer; Ear, Nose & Throat; outer wall of the Cancer Institute to be Geriatrics; and Orthopedics. temporarily removed with the help of mulAccording to its editors, U.S. News pubtiple cranes and a team of several dozen lishes Best Hospitals to help guide patients workers.

Healthy Respect for Florida Hospital

Full Steam Ahead

EXPECT EVEN MORE ACTIVITY AT PORT OF TAMPA. Edison Chouest Offshore, parent company of Tampa Ship LLC, has announced major plans to expand its fleet and enlarge some of its facilities. Tampa Ship LLC is one of four U.S. shipyards that will construct a portion of 40 new stateof-the-art offshore service and support vessels. The other construction sites include North American Shipbuilding (Larose, La.), LaShip (Houma, La.), Gulf Ship (Gulfport, Miss.) and at its Brazilian shipyard, Navship. Tampa Ship is the oldest and largest shipbuilding and repair operation at the Port of Tampa. The Port of Tampa is the largest economic engine in west-central Florida, supporting about 80,000 jobs and generating $15.1 billion in annual economic impact. According to the port’s recently completed economic study, shipbuilding and repair

Tampa Ship LLC is involved in an expansion plan that calls for the construction of offshore service and support vessels.

there equates to 3,119 jobs; $151.9 million in wages and salaries; and $174.7 million in overall economic impact annually.

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/ news, notes and commentary HIGH PRAISE FOR SAINT LEO UNIVERSITY

programs in the field. Saint Leo’s main campus is located approximately 30 miles north of Tampa. Saint Leo has also been named one of the best colleges in the nation to work for in a new survey by The Chronicle of Higher Education. Less than a third of the 300 institutions evaluated achieved “Great College to Work For” recognition. Results are reported for small, medium and large institutions, with Saint Leo included among the large universities (10,000 or more students).

Poinciana Medical Center, an HCA facility, expands health-care access in Osceola and Polk counties.

The lobbying efforts of Friends of POINCIANA HOSPITAL have resulted in the new $65 million, 100,000-square-foot Poinciana Medical Center. Poinciana residents now don’t have to drive 40 to 45 minutes to hospitals in Kissimmee, Celebration or Polk County. The two-story HCA hospital has 24 medical-surgical beds, a six-bed intensive-care unit, an 11,000-square-foot emergency department and a helicopter pad. In a recent media interview, Poinciana CEO Joana Conley said, “I have heard about the community’s need for health-care services since I’ve been here.” She considers herself the first employee, a total that will soon grow to about 200. “This is kind of a cornerstone” for Poinciana’s economic development, said Osceola County Commissioner Brandon Arrington. More on HCA West Florida: The number of hospitals under its wing has now reached 19 by virtue of recent acquisitions: Memorial Hospital in South Tampa, Town & Country Hospital and Palms of Pasadena Hospital. HCA Healthcare now operates 42 hospitals statewide.

32,000-square- foot office building at Central Florida Research Park sits in the heart of the region’s simulation and training community. Intelligent Decisions has had a presence in the Orlando area since 2010, including 30 employees. There are plans to add 25 new Orlando positions by the end of 2013.

INTELLIGENT DECISIONS INC. , a global IT systems integrator headquartered in Ashburn, Va., is opening a new office in Orlando. The facility will house the company’s entire R&D, concept development, design, production and manufacturing capabilities for its simulation training products. Neighboring the U.S. Army’s Program Executive Office for Simulation, Training and Instrumentation, the

Saint Leo University’s Master of Business Administration degree with a specialization in sport business earned global acclaim from Sport Business International.

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SAINT LEO UNIVERSITY ’s Master of Business Administration degree with a specialization in sport business is recognized among the top online programs globally by the London-based Sport Business International. This year, the publication

chose to segregate online programs in its rankings, rather than combining rankings of online and traditional classroom programs, which still dominate the educational preference in Europe. This resulted in a small but elite group of online master’s degree

LEHIGH VALLEY HEALTH NETWORK and BOCA RATON HOSPITAL’S LYNN CANCER INSTITUTE have joined the recently launched MOFFITT ONCOLOGY NETWORK . Lehigh Valley, based in Allentown, Pa., is the first member of the network outside Florida. As members, Lehigh Valley and Lynn gain access to Moffitt’s experts and best practices, which include multidisciplinary cancer care, peer review, clinical pathways, quality assurance standards and clinical research. The Moffitt Oncology Network extends Moffitt’s knowledge and expertise to physicians and providers, with the goal of offering the best personalized cancer care. Also, Moffitt Cancer Center has been designated a Statutory Teaching Hospital by the Florida Agency for Health Care Administration. The designation is bestowed upon hospitals with 100 or more full-time equivalent resident physicians that are affiliated with an accredited medical school, and provide at least seven graduate medical education programs accredited by the Accreditation Council for Graduate Medical Education or the Council on Postdoctoral Training of the American Osteopathic Association.

While women traditionally undergoing radiation treatment for breast cancer go through a lengthy process receiving radiation five days a week for nearly two months, MD ANDERSON CANCER CENTER ORLANDO is participating in a clinical trial that could shorten that treatment by one-third. MD Anderson – Orlando is the only hospital in Florida offering this clinical trial, which is available to breast cancer patients who have undergone lumpectomies. Patients in the study will either receive four weeks of radiation or the conventional six weeks. The four-week course will deliver the equivalent amount

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/ news, notes and commentary VISIT ORLANDO PRESIDENT CITED AS MOST INFLUENTIAL

Owned by Rollins College, the Alfond Inn was built with the help of a grant from the Harold Alfond Foundation. Net operating income from the inn will endow the college's Alfond Scholars program.

of radiation over the shortened period but will reduce the number of treatments by a third. Past studies indicate giving more frequent radiation treatments may be as safe and effective as the standard six-week treatment, without increasing the risk of side effects. With operations in Orlando, Tampa, Lakeland and Melbourne, among other locales, ODC CONSTRUCTION has tripled revenue in less than two years and will construct approximately 3,000 homes in Florida this year. Now, Florida’s largest shell construction contractor has its sight set northward, with the opening of a Columbia, S.C., office. According to officials, the company continues to add capacity as homebuilders dramatically ramp up their production levels and home prices rise steadily. Winter Park's newest boutique hotel, THE ALFOND INN , has a distinct link to education. Owned by Rollins College, the 112-room hotel was built with a $12.5 million grant from the Harold Alfond Foundation. Net operating income from the inn will endow The Alfond Scholars program, the college’s premier scholarship fund. Income will be directed to the fund for the next 25 years or until the endowment principal reaches $50 million, whichever comes later. In

other Rollins news, Peter McAlindon has been named its first-ever Entrepreneur-inResidence. He brings 20 years of successful entrepreneurial venture creation to the program and will also serve as a full-time instructor of entrepreneurship.

an MBA student at Stetson, presented a research paper at The Finance, Global Management, Economics & Information Technology Research Conference in New York on “Information Communication Technology and Gross Domestic Product of Communities and Nations.” MacFarlane’s research is expected to be published in the Journal of American Academy of Business in September. Shahram Amiri, professor and chair of the Department of Decision and Information Sciences at Stetson and co-author of the study, has previously completed extensive studies on the impact of information and telecommunication technology in communities and developing nations. His research provided the foundation for MacFarlane’s case study and subsequent findings. In other news from Stetson, Georgios Bakamitsos has been named associate dean of graduate business studies for its School of Business Administration. In addition to teaching, Bakamitsos will manage all graduate business programs, including the Professional MBA on the DeLand and Celebration campuses; Executive MBA at the Celebration campus; JD/MBA at Stetson’s Gulfport campus; and Master of Accountancy, Master of Accountancy Online and Pharma/MBA joint degree program with the University of Florida. He will also assist in designing global initiatives and partnerships.

GEORGE AGUEL , president and CEO of VISIT ORLANDO , has been named among the “25 Most Influential People in the Meetings Industry” in 2013 by Successful Meetings magazine. Aguel is the only convention TURNER CONSTRUCTION ’s “School of and visitor bureau president named to the Construction Management,” in partnership annual list. Aguel joined Visit Orlando as with Orange County Business Development president and CEO earlier this year, with and the Central/North Florida Minority more than 35 years’ experience in sales and Supplier Development Council, celebrated marketing. Most recently, he was senior vice a recent class of 67 graduates from 47 president of GLOBAL CORPORATE ALLIANCES and OPERATING PARTICIPANTS at The Walt Disney Co., where he led worldwide management for the company’s strategic corporate alliance agreements. Aguel also served as senior vice president of sales and services for Walt Disney Parks and Resorts.

Developing nations that invest in building robust information communications technology, such as Internet and broadband, will see an increase in their GDP and improvement in the national economy and quality of life for its citizens, according to researchers from STETSON UNIVERSITY. Kate MacFarlane,

Hilton Smith, Turner Construction’s senior vice president, and Orlando City Commissioner Daisy Lynum celebrated with graduates of Turner's free management education.

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/ news, notes and commentary DUVASAWKO EXPANDS IN VOLUSIA COUNTY

data is collected and verified at an operations center and not from drivers. In June, the service was used by Central Florida drivers almost 300,000 times per day. A Tampa office will be opened by the end of September.

Dolphin Tale 2 will begin filming this fall at the Clearwater Marine Aquarium. A study from the University of South Florida’s St. Petersburg College of Business estimates the original Dolphin Tale movie and the sequel will have a $2 billion economic impact on the area for the next five years.

companies, who took advantage of free classes that taught women-owned, minority and smaller disadvantaged companies “how to manage their fledgling firms and win work in the highly competitive building industry.” Course topics ranged from LEED/ green buildings, financial management and new codes to working with local and state institutions. DUVASAWKO , a leading medical information technology and software development company, is expanding its national headquarters in Ormond Beach, with an initial capital investment of more than $1.5 million. The company currently employs 133 people and will create 68 new jobs over three years. It also has formed Edge Physicians Inc., an affiliate medical software company, which will allow further growth in the region. The new facility will provide additional office space to conduct medical billing and software development. According to officials, DuvaSawko selected Ormond Beach because it offered an excellent site for building expansion, as well as an expedited city permitting process and recruitment and training support. DuvaSawko is renovating a vacant 30,000-square-foot building located along South U.S. Highway 1 and will move later this year. Partner organizations in the recruitment of the company included the City of Ormond Beach Department of Economic Development, the Volusia County Department of Economic Development and Enterprise Florida.

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U.S. Customs and Border Protection opened a GLOBAL ENTRY ENROLLMENT CENTER at Tampa International Airport, making international travel to and from Tampa more convenient than ever. Global Entry is a voluntary trusted traveler program that uses automated kiosks to expedite the CBP clearance process for pre-approved, low-risk international travelers entering the U.S. Global Entry members are also eligible to participate in other CBP trusted-traveler programs and TSA Precheck. Global Entry operates at 34 U.S. airports and 10 pre-clearance locations that collectively serve 97 percent of international travelers arriving in the U.S. Tampa is the fifth location in Florida, joining Miami International, Orlando International, Orlando-Sanford International and Fort Lauderdale International airports. File this under “Turning lemons into lemonade”—given problematic rush hours. Orlando-based TELE-TRAFFIC collects, organizes and utilizes local traffic data for sale to radio and TV broadcasters and for use in smartphone applications. The constantly changing information is received from many sources, including Florida Department of Transportation cameras; 911; 511 and scanners plus police, fire and ambulance emergency services. TeleTraffic service is endorsed by the Florida Safety Council as a “Safe App,” since it is just audio and no pinching or sliding on your phone is required to get the traffic report. Unlike other traffic apps, Tele-Traffic

DOLPHIN TALE 2 , sequel to the popular 2011 film, is about to make a big economic splash in Tampa Bay. The movie will begin filming this fall at the Clearwater Marine Aquarium, reuniting the original cast of Harry Connick Jr., Morgan Freeman and Ashley Judd. The first film, with 55 production days, added $17 million in revenues to the state, including paychecks totaling slightly more than $7.5 million for nearly 1,300 Floridians working as crew members, actors and extras. As a result, attendance at the Clearwater Marine Aquarium quadrupled to about 750,000 annual visitors last year. A study from the University of South Florida’s St. Petersburg College of Business estimates the two films will have a $2 billion economic impact on the area for the next five years.

As a buying incentive, homebuilder DEL WEBB and SOLARCITY, a provider of clean energy, are going solar. They are including a pre-installed 2-kilowatt solar system at homes in Del Webb Orlando and Del Webb Stone Creek in Ocala. Both are active adult communities. The system is designed to save homebuyers more than $300 on their electricity bills annually. Every standard 2 kw system at a Del Webb home in Florida is equivalent to reducing more than 95,000 pounds of carbon-dioxide emissions over the lifetime of the agreement, according to company officials. They cite the total impact of each standard 2 kw solar system at Del Webb homes in Florida over the next 20 years would equate to planting more than 2,080 trees or eliminating the use of more than 1,795 common BBQ propane cylinders. Count agriculture as an industry helping the economy make strides toward recovery. According to a new study from the UNIVERSITY OF FLORIDA , the farming, mining, forestry, other natural resources and related food industries contributed $104 billion to the state's economy in 2011, or 14.2 percent of the state's gross domestic product. This latest study from the Food and Resource Economics Department

ETC. ...

/ news, notes and commentary BRISTOL-MYERS SQUIBB HEADS TO TAMPA

in the Institute of Food and Agricultural Sciences at the University of Florida shows the impact of these industries on the state's economy, and how it's grown since the 2008 recession, when economic activity dipped about 20 percent.

The interior lobby of Keiser University’s Tampa campus is nearly as impressive as its new national and state rankings for associate degrees awarded.

In case you missed it, JOHN WALSH has been named CEO of Port Canaveral, following the departure of former CEO Stan Payne. Walsh was hired in February 2011 as deputy executive director of infrastructure. During the past two years, he has directed planning, engineering, design, construction and development of more than $300 million in planned capital projects. He has more than 32 years of construction, design-build and real estate development experience, previously owning general construction and development firms. Talk about a strong quarter of activity. AXOGEN in Alachua County reported revenues of $2.86 million in the second quarter of the year, an increase of 42 percent from the same period last year. The company, which makes peripheral nerve repair products from human-donated tissue, was spurred by the fact that two key products received regulatory approval in Europe and Canada. The company provides off-theshelf treatment options for patients with peripheral nerve injuries. Local officials across Florida have created a coalition that is launching a statewide initiative to enhance local government collaboration and efficiency, as well as educate Floridians on the important work of front-line public servants. The goal of the FLORIDA LOCAL GOVERNMENT COALITION is to make sure officials in one community know how to implement good ideas that work in other communities, in John Walsh order to “provide the best public service at the lowest possible cost.” The coalition will launch a statewide campaign to strengthen cooperation and raise awareness of the good works done by city and county public servants to enhance their communities. Local government associations have largely operated

independent of one another—for example, police chiefs have a statewide association but don’t typically deal with the comparable association of city clerks. To open the lines of communication, Florida’s 28 leading local government associations formed the coalition to “amplify their collective voice and strengthen their advocacy for the indispensible services they provide.” In the annual Top 100 rankings recently released by Community College Week magazine, KEISER UNIVERSITY placed 11th in the nation and fifth in Florida in associate degrees awarded. In addition, Keiser University ranked first statewide in associate degrees conferred in the following career fields: Computer and Information Sciences and Support Services; Criminal Justice; Health Professions and Related Clinical Sciences; Parks, Recreation, Leisure and Fitness Studies; and Security and Protective Services. With six locations across the Super Region, Keiser University’s annual economic impact on the state is approximately $3 billion. In a decision that GOV. RICK SCOTT called “great news for Florida families,” Bristol-Myers Squibb plans to locate a

North America Capability Center and create 579 life sciences jobs in Tampa. The 70,000-square-foot facility will be located in Hillsborough County and open in January 2014 with approximately 250 employees. The company will add more than 325 additional jobs supporting scientific and technical activities at the site by 2017. Around the world, Bristol-Myers Squibb’s medicines help millions of patients in their fight against such diseases as cancer, cardiovascular disease, diabetes, hepatitis B, HIV/ AIDS, psychiatric disorders and rheumatoid arthritis. Things are looking up for those seeking venture capital, according to the most recent MoneyTree Report by PRICEWATERHOUSECOOPERS and the National Venture Capital Association. Florida joined the nation’s top 10 for venture-capital activity during secondquarter 2013. Florida ranked eighth in dollars invested, a marked improvement over its 29th rank in the first quarter. Leading the surge, the report cited, was activity in Metro Orlando. Venture firms invested a collective $32.2 million in five Central Florida companies, equal to more than 20 percent of Florida’s dollar total.

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COUNTY BY COUNTY / regional news

• SUPER REGION AT A GLANCE • VOLUSIA

DAYTONA Rising has begun. The $400 million project will redevelop the grandstands and make other refurbishments along the frontstretch of the legendary track. Photo credit: Daytona International Speedway

he iconic Daytona International Speedway conducted a ceremonial groundbreaking for city and county officials in July for its $400 million renovation, called DAYTONA Rising. The project will redevelop the grandstands and make other refurbishments along the frontstretch of the current 147,000-seat track. On hand to work the bulldozer and “dump the dirt” was NASCAR Driver Greg Biffle, who was joined by fellow driver Trevor Bayne. There was, of course, a race—of the obstacle course variety with front-end loaders. Biffle and Bayne beat the teams of Sprint Cup drivers Jeff Burton and Ryan Newman and also television announcers Darrell Waltrip and Larry McReynolds. “In keeping with the Speedway’s tradition, we wanted to find an innovative way to honor history and create memorable moments for our fans, which is ultimately what the DAYTONA Rising project is all about,” said Joie Chitwood III, president of the Speedway. The massive overhaul will include removing the stands along the backstretch. Fans will be treated to five grand entrances, 40 escalators and a dozen elevators; wider, more comfortable seats and elegant suites; larger concourses for a greater variety of concession and merchandise choices; and remodeled bathrooms. The renovation is scheduled for completion in January 2016.

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COUNTY BY COUNTY / regional news ALACHUA

MUCH TO THE DELIGHT OF CITY AND COUNTY

economic developers, the Sid Martin Biotech Incubator at the University of Florida has added another award to its long list of accolades: World’s Best University Biotechnology Incubator. A nearly yearlong international study conducted by the Stockholm-based UBI Index was unveiled as part of a 70-page report that benchmarked 150 university business incubators in 22 countries. “Being recognized as the world’s top biotech incubator is especially gratifying because UBI’s rankings are data-driven,” says Patti Breedlove, incubator director. UBI reviewed more than 50 performance indicators, including job creation, talent retention, access to funding, network enhancement and post-incubation relationships. Built in 1995, the UF Sid Martin Biotech Incubator has attracted more than $1 billion in equity investment, contracts, grants, and mergers and acquisitions.

drivers of approaching bikes. The project’s goals are to beautify, increase business and slow traffic. Also in 2013, a Trail Network Map was approved to “close the gaps,” enabling cyclists to travel the county with the addition of connecting trails and trailheads.

DESOTO

Bicycle Boulevard in Citrus County connects Withlacoochee Trail with its more than 46 miles of paved pathways for cyclists. Among the goals is increased business downtown.

GOOD NEWS FOR THE COUNTY’S PUBLIC school district: Three students received

national recognition at the annual Health Occupations Students of America conference in July. Aaron Houser placed second in the Nursing Assistant category, Brianna Blosser placed third in the Home Health Aide category and Joelia Avila placed seventh in Personal Care. Houser and Blosser competed as students from South Florida State College; both graduated from DeSoto County High School last year. The conferences, which began in 1980, are part of this national organization devoted to fostering students interested in health-care careers. Each year, DeSoto students attend the conference, and for the past several years the county has had several students excel on the national stage.

FLAGLER

BREVARD

BREVARD COUNTY FIRE RESCUE AND PALM

Bay Fire Rescue formed a partnership in July whereby they will share a facility, including department resources and personnel. As a result, BCFR Station 84 was officially moved to PBFR Station 1. The step was the first of three designed to improve both level of service and response times for residents of Palm Bay and Brevard County. The agreement stems from Harris Corp.’s decision to expand its Palm Bay Road facility that encompasses BCFR Station 84. There were other developments, as well, all designed to place the emergency units closest to areas of higher call volume, providing for improved response times. “Shrinking budgets and demands for increased service affect both departments,” said Brevard County Fire Chief Larry Collins. “This sort of innovative thinking, however, demonstrates the agencies’ commitment to operating safely, effectively and efficiently, to the benefit of the citizens of both communities.”

CITRUS

BICYCLISTS ARE PEDALING HAPPIER AND

safer in Citrus County, thanks to the recently completed Bicycle Boulevard. By connecting Withlacoochee Trail with its more than 46 miles of paved pathways for cyclists, Inverness city officials hope the new boulevard will bring more business to downtown. The improvements include widening of North Apopka Avenue, new landscaping, more bike racks and sensors on the trail to alert

As part of Bunnell's centennial celebration, it was 1913 again in July for city officials and staffers. (The lady in the pink dress and pink hat is Bunnell resident Jessica Thomas, who turned 100 this year.)

HAPPY CENTENNIAL, BUNNELL!

On July 8, the city of Bunnell, county seat for Flagler, celebrated its 100th birthday. The current city commissioners and many city staffers wore 1913 period costumes and walked by vintage cars along with the city’s victory float. The festivities included the burial of a time capsule, to be opened in 50 years. The city’s first commission meeting, known then as the Bunnell City Council, was re-enacted inside City Hall.

HARDEE

THE FLORIDA ASSOCIATION OF COUNTIES (FAC) presented Hardee County

Commissioner Sue Birge with a Presidential Advocacy Award during the 2013 Annual Conference & Exposition in July. The award is given annually to those county commissioners from around the state who have demonstrated exceptional leadership in partnering with FAC. Birge, chair of the Hardee County Board of County Commissioners, is a graduate of Hardee High School whose career includes positions in banking, finance and real estate. She was among 12 commissioners honored during the event. For 80 years, the FAC through advocacy, education and collaboration has represented the diverse interests of Florida’s counties, emphasizing the importance of protecting home rule—the concept that government closest to the people governs best.

HERNANDO

LORI ROMANO, A FORMER ADMINISTRATOR with 20 years of experience, was

tapped as new superintendent of Hernando County Schools in Brooksville, a district that encompasses 22,750 students and 3,400 employees. According to media sources, Romano says her main focus is on fixing the district’s dropout and attendance problems. She plans to make Henando an “A” district and signed a two-year contract with a one-year option to renew. Previously, Romano served as director of adult, community and virtual education for Martin County Public Schools. She also served as director of state personnel development

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COUNTY BY COUNTY / regional news

and program evaluation for the Florida Department of Education in Tallahassee.

HIGHLANDS

THANKS TO A NEW STATE-FUNDED

position, county officials received a boost in their efforts to fight school truancy. The Department of Children and Families has provided an additional staff position to work exclusively in Highlands County. While the county previously had to share a staff member with Polk and Hardee counties, as part of early intervention, Gov. Rick Scott approved the new funding and named Highlands County the recipient. The new staff position will be with Youth and Family Alternatives Inc., which serves Tampa and Central Florida, offering substance abuse prevention and intervention services, foster care and adoption services, runaway/youth crisis services, and family counseling. The initial effort will focus on elementary school students.

the challenging street grid fixed, while allowing us to activate the Tampa Riverwalk with new residential and retail possibilities. The project and the tax revenue it will generate will allow us to continue to invest in our downtown, shaping an urban core we can all enjoy.”

LAKE

MANATEE

MIKE GORE, MANATEE’S LONGTIME SOLID

HILLSBOROUGH

PLANS TO FURTHER DEVELOP TAMPA’S

Riverwalk gained momentum in mid-July, when the Straz Center for the Performing Arts’ Board of Trustees voted to support the proposed Residences on the Riverwalk project. Tampa Mayor Bob Buckhorn praised the board’s decision: “I appreciate the support [of the Straz Board] for the project. … It is a clear indication that they share the developer’s and my vision for a vibrant, active waterfront and downtown. The Residences at the Riverwalk presented an opportunity for the Straz to have

A glimpse at the county's website shows permit streamlining in action for contractors and developers. THE LAKE COUNTY GROWTH MANAGEMENT

Department has made it easier for contractors and developers to obtain commercial and industrial permits remotely via the county’s website at lakecountyfl.gov/growthmanagement. In addition to those permits, pre-application conferences, preliminary plat reviews and site plan applications are being accepted through the website. The online service includes electronic reviews by the county and its Health Department’s Environmental Health Services. Also available are tutorials for each application type, including detailed walk-throughs of the application and submitting process, a breakdown of the potential fees and links to more information. In September 2011, Lake County unveiled a process for accepting residential permits through its website and has been working to continually expand online services.

LEVY

PEGASUS FARMS IN BRONSON IS NEARING

City officials hope to add new residential and retail possibilities to Tampa’s Riverwalk.

18 W EDITION 3 / 2013 • FORWARDFLORIDA.COM

in profits within three years. Farm personnel are teaching classes on the subject, which integrates fish tanks with vegetable and other seeds, and will use revenue from the classes to build necessary infrastructure. The system uses 6 percent of the water of traditional agricultural operations and will not use any herbicides or pesticides. A total of 24 greenhouses will be built in several phases, which farm officials plan to use as franchise models across the country.

the start of a major aquaponics operation that is anticipated to generate $3 million

waste division manager, has been selected among a field of 100 applicants as Manatee County’s new Utilities Department director. Gore replaces Dan Gray, who retired after 30 years with the county. Gore was hired by Manatee County Government in 1984 as a part-time distribution tech, assisting with water service installations and repairing broken water lines. He worked for 14 years with Manatee County Utilities Water Division. In 1998, he became the Lena Road Landfill Superintendent, where he helped oversee upgrades at the Southeast Regional Plant Sludge Dryer, which resulted in substantial annual savings to the utility system. He is also spearheading a generator project at the landfill that will allow the Southeast Regional Waste Water Plant to be run almost entirely off energy created at the Lena Road Landfill. That project will result in annual utility savings of about $650,000.

MARION

COUNTY OFFICIALS AND RESIDENTS

continue to wrestle with a difficult community challenge: finding the ideal location for a homeless shelter, the Open Arms Village. According to Ocala Mayor Kent Guinn, a similar facility and project has worked in Pinellas County and could work in Marion, if the right site is identified. Some residents have voiced concern that a potential property under consideration was too close to residential areas and schools. From media sources, Karla Grimsley, the executive director of Interfaith Emergency Services, hopes for a one-in-two success rate in rehabilitation but cautions that site selection is key, including proximity to a bus stop, crucial for transportation to jobs.

COUNTY BY COUNTY / regional news Orlando Mayor Buddy Dyer (in the white suit), here flanked by other officials, touts the project’s safety and traffic benefits for busy International Drive.

ORANGE

county’s first business incubator. Covey, a manager with the Pasco EDC, has been working with startups through the Pasco Enterprise Network, a partnership of county organizations helping support entrepreneurial activity. SMARTstart is an innovative facility-based program to engage entrepreneurs, grow new businesses and create job opportunities in Pasco. “Krista works with startups on a daily basis and thrives in an entrepreneurial environment,” said John Hagen, president/CEO of Pasco EDC, which is aggressively putting the call out to companies from a variety of industries.

ORLANDO MAYOR BUDDY DYER, ORLANDO

District 6 Commissioner Samuel Ings and city officials broke ground on a $9 million upgrade to North International Drive, an important tourist hub in Metro Orlando. The 1.5-mile project extends from Universal Boulevard to Oak Ridge Road and will incorporate such improvements as construction of an exclusive lane for buses and right turns, bike lanes, 10-foot wide sidewalks and streetscape elements. The project is designed to improve pedestrian safety and help relieve traffic congestion. Project completion is expected by the end of 2014.

PINELLAS

ST. PETERSBURG POLICE OFFICIALS APPEAR

OSCEOLA

JR. DAVIS CONSTRUCTION CO. INC. WAS

unanimously selected by the Osceola County Expressway Authority as the design-build firm for Poinciana Parkway, setting the stage for groundbreaking on the project by the end of the year. The Expressway Authority has been working aggressively on the Poinciana Parkway project since the agency was established in 2010. The Poinciana Parkway is identified in the Authority’s 2040 Master Plan and is a key priority for Poinciana residents. “The progress that has been accomplished thus far is due to the great partnerships with Osceola County, Polk County and Avatar [Properties],”

The newly planned Poinciana Parkway is designed to expedite travel through Osceola County and surrounding areas.

notes Expressway Authority Chairman Atlee Mercer. Jr Davis Construction was selected from a field of 11 applicants; groundbreaking is planned for December.

PASCO

THE PASCO ECONOMIC DEVELOPMENT

Council selected Krista Covey to manage the SMARTstart Dade City Incubator, the

to have devised a clever solution to at least one of the budget strains that often go hand-in-hand with a growing economy. For about two years, police had been struggling to pay for the increased patrols necessitated by the city’s revitalized downtown. Overtime payments had increased by about 300 percent, with no end in sight. Then St. Petersburg Police created new, regularly scheduled “relief” units, which the Tampa Bay Times reports have virtually eliminated overtime pay and increased police response times downtown. The units work a previously nonexistent eight-hour shift from before dusk to near sunrise the last four days of the week.

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COUNTY BY COUNTY / regional news

A Charter County and Regional Transportation System surtax could lead to a countywide bus transit system in Polk.

POLK

THE POLK COUNTY TRANSIT AUTHORITY

and Polk County Board of County Commissioners have called for a referendum in November 2014 to seek voter approval for the levying of a one-cent Charter County and Regional Transportation System surtax. It is proposed that half of the tax revenues be used to fund the development, construction, operation and maintenance of county roads and bridges, while the other half will fund the development, construction, equipment, maintenance, operation and supportive services of a countywide bus transit system. The Lakeland Area Mass Transit District supports the proposal.

PUTNAM

ECONOMIC DEVELOPERS APPLAUDED THE

news in July that Alorica, an international provider of customer management outsourcing solutions, was adding 200 new employees through one of its clients. Most positions will be inbound customer service representatives, although other jobs include support and management. Paid training classes began almost immediately. Alorica covers all service channels—from customer acquisition and sales, customer care and support, to logistics and fulfillment. Its business process outsourcing services span both the business-to-consumer and businessto-business sectors for Fortune 1000 companies. Headquartered in Irvine, Calif., the company has more than 20,000 employees in domestic and foreign customer management centers.

SARASOTA

SARASOTA COUNTY’S GREEN BUSINESS

Partnership has added nine new members to a community of companies and

20 W EDITION 3 / 2013 • FORWARDFLORIDA.COM

The scenic Lake Monroe waterfront in Sanford is being further enhanced by Phase II of its award-winning RiverWalk project.

organizations that are demonstrating their “commitment to a healthy environment for employees and the community at large.” Core components of the partnership certification include waste reduction, increased recycling and energy and water conservation. The nine new members are BB&T (Jacaranda branch, Venice); Easy Exit Homes LLC; Girl Scouts of Gulfcoast Florida; Heritage Oaks Golf & Country Club; Jefferson Center; Myakka River State Park; Save Our Seabirds Inc.; Smell The Bread Café; and Venice YMCA. A collaborative effort, the Green Business Partnership includes businesses, service organizations and local governments. The program was initiated through a grant awarded to Sarasota County by the Florida Department of Environmental Protection.

SEMINOLE

THE CITY OF SANFORD HELD A

groundbreaking ceremony in July for Phase II of its award-winning RiverWalk, a scenic walkway that follows the shoreline of Lake Monroe. The $4.6 million project will extend 3,100 feet westward from French Avenue to Central Florida Regional Hospital. Funding for the project is provided by the Florida Department of

Transportation Local Agency Program and the Seminole County Second Generation One-Cent Sales Tax. The city is currently pursuing funding for the final Phase III project, which will connect the city of Sanford to the Seminole County Trail system and extend from French Avenue to Interstate 4 along the St. Johns River, providing recreational users with another opportunity to explore and view the natural surroundings.

SUMTER

IN JULY, THE SUMTER COUNTY CHAMBER

of Commerce presented its fifth annual Valor Awards to outstanding law enforcement professionals, firefighters, emergency responders and corrections officers as “gratitude and admiration to these men and women who protect our lives and property, and who sacrifice their time, effort and passion for our county.” The winners: Correctional Officer Manuel Martinez and Correctional Officer James Schroder of the Federal Correctional Complex at Coleman; Paramedic Luis Irizarry and EMT Joshua Wilson of Rural/Metro Ambulance; Deputy Sheriff Beatrice Ayala of the Sumter County Sheriff’s Office; Firefighter Sean Duffy of Sumter County Fire-EMS; Firefighter/ Paramedic Jose Labrador of The Villages Public Safety; and Officer Brian Harrie of the Wildwood Police Department.

myregion.org, one of four lines of business of the Central Florida Partnership, is pleased to announce our newest project, in partnership with the Florida Chamber Foundation, and generously funded by four organizations: The Florida High Tech Corridor Council, Orlando Regional REALTORS Association, the University of Central Florida Metropolitan Center for Regional Studies and VHB Miller Sellen.

Our regional leaders have long asked, “How can we make our community a better place to live, work, play and visit?” Today the region gains a new tool for this quest with the official launch of The Central Florida Scorecard, a pilot project between myregion.org and Florida Chamber Foundation.

The Central Florida Scorecard tracks state-to-region-to-county data on 18 key indicators of our global competitiveness and quality of life.

Talent Supply and Education • High school graduation rates • College attainment • Average annual wage

Innovation and Economic Development • Business starts • High-tech industry employment • Export value

Infrastructure and Growth Leadership • Water consumption • Daily vehicle miles traveled • Air quality

Business Climate and Competitiveness • Tax rate • Unemployment rate • Broadband access

Civic and Governance Systems • Nonprofit organizations • Charitable contributions • Voter participation

Quality of Life and Quality Places • Health status • Home foreclosures • Creative industry employment

Visit www.myregion.org to Learn More. The Central Florida Scorecard will help myregion.org, one of four lines of business of the Central Florida Partnership, continue focusing on “Regional Research and Resolves” to enable the dialogue that shapes the region’s future. Working with Orlando, Inc. (Regional Entrepreneurship), BusinessForce (Public Policy Advocacy), and Leadership Orlando (Regional Leadership), the Central Florida Partnership is moving “Ideas to Results.”

Q PERSPECTIVES LEADING POINTS OF VIEW

REASSESSING EDUCATION By

Carol Craig

TO KEEP FLORIDA AT THE FOREFRONT OF THE U.S. TECHNOLOGY MARKET, TACTICAL CHANGES TO THE STATE’S EDUCATIONAL OFFERINGS ARE NEEDED. EARLY.

recently read a letter to the editor from one of my counterparts here on the Space Coast that described (in his opinion) the educational landscape for properly training the high-tech workforce necessary for future economic development in Florida. The tech genius-turnedbusiness-owner behind the letter challenged the state to increase the number of vocational schools and reassess the direction of community colleges since they have taken on four-year degrees. A technology business owner myself, I also look ahead to the future workforce in meeting the needs of our company’s growth, and I concur that tactical changes to Florida’s educational offerings are required to keep the state at the forefront of the U.S. technology market. In my opinion, intervening at the college level is too late; quality education focused on STEM subjects must be introduced during K-12. We will see how the federally guided Common Core Standards shake out after they are implemented in Florida, but I believe that collaboration with private industry is critical to support and guide K-12 education. This will generate the competence and quality necessary for the 21st century workplace. We need to encourage curiosity and problem solving at the primary grades and nurture students’ natural aptitudes for STEM subjects. Once the students move into middle grades and beyond, educational pursuits can then become more specialized with an experiential component. One way of approaching this is through the Cooperative Education (Co-op) model in which students alternate periods of academic study with periods of paid or nonpaid work experience. This can only be done with the support of private industry. Here on the Space Coast, we’ve seen numerous school closures because voters opted out of a small tax increase that would have helped meet the needs of increased student populations and technology improvements. With federal, state and local budgets becoming tighter, it is imperative that private industry step up to the plate and help to “design” the workforce of the future from the start. With three elementary schools ranked in the U.S. top 10, Brevard County Public Schools (ranked eighth in the state, https://app2.fldoe.org/Ranking/Schools/) has given focus to developing the CTE-CHOICE program to provide high school

22 W EDITION 3 / 2013 • FORWARDFLORIDA.COM

students the opportunity to participate in a specific career and technical education program not offered at their zoned high school. (The district provides transportation to students in order for them to attend.) At Merritt Island High School, the DaVinci Academy of Aerospace Engineering is one of the CTE-CHOICE programs. The caliber of this program is exceptional because the curriculum is shaped by a business advisory board that includes representatives from industry giant Lockheed Martin, my own company, the U.S. Air Force and others. The result? High school students have designed and produced a cube satellite that is now scheduled to go into orbit via an upcoming SpaceX launch, http://amsat-uk.org/2013/04/11/ merritt-island-high-students-cubesat/. Imagine if every school had this type of buy-in from industry! The Economic Development Commission of Florida’s Space Coast Industry Council has taken note and is now exploring a partnership with the Automation & Production (Manufacturing & Robotics) program at Heritage High School in Palm Bay, as part of the EDC’s move to concentrate on growing the manufacturing sector in Brevard. Yet another progressive example is the Central Florida STEM Education Council (CFSEC) supported by the Women in Defense (WID) industry association. Described on its website, myawesomefloridacareer.com, the CFSEC is “a collaborative effort between academia, industry, professional organizations and government, with a long-term objective of increasing the technical workforce … . CFSEC strives to develop a unified STEM program to include mass communication, mentorships and resources for parents, students and educators.” If Florida is to get serious about high-tech worker training, it is the business leaders and not the government who need to spell out the path forward. Industry must contribute to the education dialogue by offering technical staff to schools and opening their workplaces to students. I feel that we are making significant progress in our efforts to improve education and our workforce, but the question to ask yourself is “Are YOU ready to buy-in?” editor’s note: carol craig is founder, ceo and cfo of cape canaveralbased craig technologies, a $40 million engineering and advanced manufacturing firm. she is the mother of two school-aged children.

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HOW2

/ expert tips and advice

LAW

AVOIDING

PATENT TROLLS The White House, Congress and individual states are taking action on potentially hurtful activity across the business landscape. So should you. by RYAN T. SANTURRI HAVE YOU EVER HEARD THE TERM “PATENT TROLL”?

President Obama has bandied about the term, along with members of Congress, the Federal Trade Commission, the Department of Justice and countless corporations. Right now, dozens of manufacturers, retailers and trade organizations are lobbying Congress to pass bills to crack down on so-called patent trolls. A White House Task Force has been formed and charged with analyzing patent trolls and options to restrict them through new legislation. Several bills in Congress have been introduced or are being drafted to address patent trolls through various legislative approaches. States are also looking at patent trolls, with Attorney Generals in both Vermont and Nebraska making moves to address one particular troll. Patent trolls are also known (in less pejorative terms) as non-practicing entities (NPE) or patent assertion entities (PAE). Some consider PAEs a subset of NPEs. The primary goal of PAEs is to monetize patents through licensing or the assertion of the patents in litigation. The first step in this process for most PAEs is typically to send out “notice” or “cease and desist” letters. Indeed, one particular PAE allegedly sent more than 8,000 letters offering licenses to one of its patent portfolios. These letters attempt to capitalize on the unfortunate reality that it is often cheaper to negotiate than to pay the cost of defending a lawsuit.

24 W EDITION 3 / 2013 • FORWARDFLORIDA.COM

The primary criticism of NPEs and, more specifically, PAEs is the argument that they do not use their patents to stimulate innovation or “promote the progress of science,” which is the goal of patents espoused in the U.S. Constitution. Critics argue PAEs are nothing more than shakedown artists, entities that threaten and file lawsuits, knowing that 99 percent of targets will recognize the expense and uncertainty of litigation exceeds the cost of simply taking a license. These critics argue that PAEs do nothing more than drive up the cost of doing business through litigation and licensing expenses. But not all agree that NPEs and PAEs hurt business and innovation. Many universities are considered to be NPEs, as educational research can generate large patent portfolios but typically don’t manufacture products. Sometimes inventors never successfully commercialize their invention, but the failure of an inventor to commercialize an invention doesn’t necessarily mean there is no value or utility in the invention. Ultimately, some inventors turn to PAEs to assist in recognizing a patent’s value, because PAEs have the capital and the experience to monetize patents through licensing and litigation. Accordingly, some argue that PAEs help inventors recognize benefits from their innovation, serving to encourage and foster further innovation. So why should you care about PAEs? Over the past decade, the common targets of PAEs were software and communication companies. More recently, PAEs have also targeted the end-user of the technology, often individuals or small

businesses. One of the most notorious instances is that of MPHJ Technology Investments LLC, which sent out hundreds (likely thousands) of letters describing an infringing system as one that included a network, a scanner and email for sending out the scanned image. In other words, using a system with a multi-function scanner connected to a network—like systems found in nearly every business small and large— infringed. The letters produced angry reactions and blog posts across the Internet. Recently, MPHJ Technology has ceased its enforcement tactics, citing ongoing challenges to the validity of the patents in the U.S. Patent and Trademark Office. What should you do if you receive a cease and desist letter based on a patent? Start with some initial research. Any U.S. patent (since 1790) can be reviewed online at the U.S. Patent Office’s website (uspto.gov). Additionally, if the letter is part of a widespread licensing campaign, you may find information online from other recipients. However, simply because letters have been sent to others doesn’t suggest you should ignore the letter. While you may ultimately chose not to respond, you should strongly consider consulting with a patent attorney. If you end up being sued, the failure to investigate infringement allegations could be considered in determining willful infringement. editor’s note: ryan santurri is a florida board-certified intellectual property law attorney with allen, dyer, doppelt, milbrath & gilchrist, p.a. he advises clients in the areas of intellectual property and related litigation involving patents, trademarks, trade secrets, copyrights and right of publicity. he also provides trademark and copyright acquisition and counseling services. [addmg.com]

HOW2

/ expert tips and advice

NONPROFITS

GIVING THEIR ALL

A snapshot of Central Florida public charities shows lots of strategic activity plus an improving picture. by CARTER MYERS

Editor’s note: Cross, Fernandez & Riley LLP recently released the results of its Fourth Annual Central Florida Public Charities Survey in partnership with the Community Foundation of Central Florida. The survey, a way for the firm to give back to the Central Florida nonprofit community, serves as a vital benchmarking tool to area charities. In 2012, 137 nonprofits throughout Central Florida participated, an increase from 114 the previous year. The results are published, allowing any nonprofit to gauge how they measure up. The survey includes operations, human resources, governance, development/ volunteerism and strategic planning. These results provide valuable information, not only to management involved in the day-to-day operations of a nonprofit, but also to board members, donors and the community.

management-employee relations. The organizations that participated in the survey were also asked to list the top three greatest obstacles encountered in 2012. Among the highest concerns listed in the strategic planning section of the results were cutbacks in funding/drops in revenue (73.6 percent), lack of adequate discretionary funds (43.8 percent) and rising costs (38.8 percent). Other major concerns: attracting quality leadership for the organization and an excess demand for services. DONORS

BOARD MEMBERS

The governance section provides insight into how the boards operate. It includes questions on term limits for board members, orientation processes and evaluations, as well as whether audit services are required and, if so, how often. Though this section can lead to comparisons between how individual nonprofits are governed, there are also sections of the results that board members may find useful relating to the operations side of the organization. Board members will benefit from reviewing the human resources section of the results. The survey asked its participants to name the top three issues regarding employment satisfaction, with the biggest concerns as follows: compensation (75 percent), benefits (57.1 percent) and communication (51.9 percent). Among other issues were work environment, flexibility in work schedules and

If you are involved in a nonprofit, you already know that fundraising is essential. According to First Research, a division of Hoover’s Inc., 75 percent of public charities’ revenues come from program services, such as tuition or patient charges, while less than 15 percent come from contributions, gifts and grants. The development/volunteerism section of the results breaks down exactly what percentage each type of fundraising activity contributes to the organization’s total revenues. Similar to previous years, special events account for the majority of revenues, with 49.4 percent of those surveyed reporting an increase in funds derived from such events. The results also indicate the largest percentage of growth for 2012 was from individual contributions, with 59.7 percent of the organizations seeing an increase in this group. The results also cite the Internet as a growing source of fundraising and contributions. Despite this

growth, 45.3 percent of the organizations polled do not employ any type of e-philanthropy. This may cause such organizations to miss out on new and slightly unexpected donor groups. Donations from Millennials and Generation Xers (anyone born between 1983 and 2000) are steadily increasing, and this rise can be attributed to fundraising through social media and e-mail. COMMUNITY

Aside from monetary contributions, most nonprofits rely on support from community volunteers. For 2012, 48.8 percent of the nonprofits surveyed reported an increase in volunteer involvement. Though almost half reported an increase, this number is down from 2011’s survey, which documented that 54.9 percent experienced an increase in volunteers. Although many of the nonprofits surveyed did note an increase in those willing to help the cause; 56.5 percent saw a rise in the number of people impacted by their organization. Local nonprofits seem optimistic about the growth of their respective charities, with 72 percent reporting they will experience an expansion and 69.1 percent planning to introduce new programs, an increase from 46 percent in 2011. editor’s note: carter myers is an orlando-based writer with cross, fernandez & riley llp. the survey results are complimentary and published on c/f/r’s website at cfrcpa.com. to request a copy of the survey or to be included in this year’s survey mailing list, e-mail jjohnson@cfrcpa.com.

W FORWARDFLORIDA.COM 25

INNOVATIONS / growing ideas into enterprises

ECONOMIC DEVELOPMENT

MADE TO ALTR SMALL TOPIC, BIG DISCOVERY: AN ENTERPRISING COMPANY HAS DESIGNS ON IMPACTING FASHION WITH CUSTOMIZABLE BUTTONS. While at a nautical-themed wine tasting, friends Alexandra Gramatikas and Trip Driskell found themselves in a deep discussion over a relatively small topic: buttons. “We started talking about how great it would be if blazers and other articles of clothing could be more customizable,” recalls Gramatikas. “A light bulb went on when we realized we could do this with buttons.” Thus, the duo founded ALTR, a company specializing in customizable button covers. In spring 2012, Gramatikas entered the duo’s button cover idea in the UCF Joust Business Plan Tournament. She was awarded first place for the idea and a well-written business plan. With her prize of $10,000 and a one-year residency in the UCF Business Incubation Program, Gramatikas created the company’s first round of inventory.

ALTR sells UCF and UF button covers. With a prize of $10,000 and a one-year residency in the UCF Business Incubation Program, its founders created the first round of inventory.

Currently, ALTR sells UCF and University of Florida button covers. UF buttons were added to ALTR’s Collegiate Covers line in July. “This is a thrilling time for us because football season is coming up, and students love to represent their teams at games,” says Gramatikas. “We’re really excited to see how the product takes off

CELEBRATING BUSINESS INCUBATION

UCF's business incubator at Daytona Beach International Airport marked its second anniversary in late July.

26 W EDITION 3 / 2013 • FORWARDFLORIDA.COM

The UCF Business Incubator - Daytona Beach International Airport, a partnership among Volusia County, the University of Central Florida and the Florida High Tech Corridor Council, celebrated its second anniversary in late July—appropriately enough, with the launch of the Fusion Fitness Designs firm, the new Daytona

within the UCF and UF communities.” Also, the company is partnering with Susan G. Komen, the world’s largest breast cancer organization, to sell pink buttons for breast cancer awareness. For every one sold, ALTR will donate $1 of the proceeds to Susan G. Komen. In addition, ALTR will be working with UCF in the planned 2014 Cure Bowl, where it hopes to sell special button covers to benefit breast cancer research foundations. A graduate of UCF’s MBA program, Gramatikas is grateful for her experience with the UCF Joust Business Plan Tournament. “Winning the Joust competition has been one of our greatest accomplishments. We are so thankful for all the opportunities it has provided. “We’ve felt supported every step of the way. We couldn’t have made it to this point without the assistance from the UCF community.”

Incubator Research Library and a coworking space initiative. Additionally, Daytona Beach Site Manager Connie Bernal was recognized for her contribution to economic development by being selected one of the top “30 Influential Women in Business from Volusia and Flagler” counties, an honor by the Volusia/Flagler Business Report, a monthly publication of the Daytona Beach News-Journal.

INNOVATIONS / growing ideas into enterprises WEATHERING THE STORM

New technology developed by chemist Richard Blair could transform manufacturing.

GRAPHENE’S NEW WONDER

A UCF researcher has developed a proprietary method for making graphene—an element some have described as the “wonder material” of the century—accessible to industry. The technique, which the university recently licensed to UCF spinout Garmor Inc., uses a combination of chemical and mechanical processes to break down graphite, found in pencil lead, into graphene. Garmor worked with UCF’s Office of Technology Transfer to commercialize the technology developed by Richard Blair, a chemist in UCF’s NanoScience Technology Center, and David Restrepo, a doctoral student. Graphene, a material measuring one atom in width, offers unique strength and elasticity and is superior in its ability to conduct electricity and heat. By adding a small amount of graphene during the production process, makers of plastic, rubber and metal can manufacture products far lighter and stronger. Blair’s technique has the potential to transform manufacturing of everything from car bumpers and truck bed liners to airplanes and bridges. The new technology allows Garmor to make a graphene additive for a fraction of the cost, formerly up to $200,000 a kilogram, and market the product for use in electrical, thermal and structural components.. Because graphene is an ultra-light, performance-enhancing material, manufacturers also stand to gain by reduced shipping costs. The company plans to expand its production capabilities and is expected to open a new facility near the Orlando International Airport in August. There are eight full-time employees, but more are expected to be on the way following the move.

A&E Network’s latest cross-platform initiative, “Project Startup”features emerging companies seeking seed money and funding to help their mission. One such company is World Housing Solution— selected by A&E as one of three startup companies to participate in the show, which debuted in April. World Housing Solution, based in Central Florida, is a client of the Florida Cleantech Acceleration Network, which links Florida-based universities, incubation networks, investors and industry resources to create a network of Proof of Concept centers. These centers translate the creation and commercialization of innovative clean technology research into new technology companies or license them into existing firms. According to an A&E press release, the network will partner with RocketHub, an online crowd-funding platform, “to identify key entrepreneurs who have current projects in development on RocketHub’s platform that reflect the network’s commitment to the new entrepreneurial spirit.” A&E offers selected companies seed money and exposure on all of its on-air and online outlets. World Housing Solution CEO Ron Ben-Zeev co-founded the company during the aftermath of Haiti’s catastrophic 2010 earthquake. He assembled a team of innovators and developed shelters incorporating structural insulated composite panels. “I challenged my team to come up with a reusable, rigid tent that could provide safety and security to inhabitants and be earthquake- and hurricane-resistant,” notes Ben-Zeev. World Housing Solution has since started manufacturing strong and durable structures using phenolic resin and fiberglass panels. The outer shell of the panels allows the structures to withstand mold, mildew, termites, fires, earthquakes of up to 7.8 in magnitude and Category 4 hurricanes. The company works closely with the U.S. Navy, having developed a prototype structure at Camp Shelby in Mississippi, which has weathered several hurricanes and tropical storms. The U.S. Navy also serves as a conduit for supplying structures to the South Pacific Island of Palau and the Horn of Africa.

EYE ON THE GOOGLE LUNAR XPRIZE

UCF alumnus Ruben Nunez is on a mission. Captivated by an emerging industry of space exploration called NewSpace, Google teamed with XPRIZE to create the Google Lunar XPRIZE—a $30 million competition that challenges private companies to place a robot on the moon’s surface that explores at least 500 meters and then transmits highdefinition videos and images back to Earth. The first team to do so will claim the grand prize. Nunez wants to win it. Inspired, Nunez founded Orlando-based Earthrise Space to make space exploration accessible to the public while addressing the nation’s need for a revamped and more economically sound space industry model. To make it happen, he harnessed the technological prowess and creative imaginations of more than 40 UCF students and seasoned industry veterans. Earthrise Space is the only Florida-based team competing. Already, Earthrise Space, signed its first lunar payload client, Chilean-based AngelicvM. The UCF Business Incubation Program has donated workspace, along with other valuable resources. UCFBI - Winter Springs client CAMCAD Technologies donated use of its software to help streamline the company’s manufacturing processes. Earthrise Space has partnered with NASA’s Swamp Works under a federal Space Act Agreement to seek and develop innovative new solutions for space exploration. Plus, Earthrise Space has generated an impressive list of other partners and sponsors, including National Instruments, Mydea Technologies, Rapid Machining and Stratasys. The company’s student-based business model allows it to operate without many of the obstacles and restraints experienced by larger, more bureaucratic firms. In effect, this provides Earthrise with a competitive advantage during a time when the space industry is focused on efficient, costeffective approaches to space exploration. There’s much work ahead, but Nunez and Earthrise Space appear ready for take-off.

W FORWARDFLORIDA.COM 27

POSITION

University of Florida President Bernie Machen

28 W EDITION 3 / 2013 • FORWARDFLORIDA.COM

PHOTO: ©ERIC Z AMOR A /UF PHOTOGR APHY

PREEMINENCE and His Mission: Top 10 Status

BY SUSAN REVELLO

W FORWARDFLORIDA.COM 29

The current relationship between Gov. Rick Scott and University of Florida President Dr. Bernie Machen began with numbers.

An energized Bernie Machen discusses top 10. PHOTO: ©RAY CARSON/UF PHOTOGRAPHY

“

What would you do to improve our position in the national ranking of universities? And how would giving money to your college help us?”

— UF PRESIDENT BERNIE MACHEN

30 W EDITION 3 / 2013 • FORWARDFLORIDA.COM

The genesis was an economic impact study commissioned by the Board of Governors of the State University System to understand the economic contributions to society and the state made by its 12 member universities, including UF. For the fiscal year 2009-10, UF had total revenues of $4.27 billion with $2 billion from sources outside of Florida; total spending of $5.83 billion; total spending within Florida of $4.92 billion and a total output or revenue of $8.76 billion for the state’s economy. The numbers caught the governor’s eye—big time. It was a long-awaited, ‘I told you so’ moment for Machen. UF currently sits at No. 17 on the U.S. News & World Report rankings of public universities nationally. A preeminence designation by the state would provide additional funds to pursue top 10 status, something very important to Machen. And, apparently, to Scott. “Here’s a businessman that comes from outside of Florida most of his career, and he came in asking questions,” says Machen. “He’s a very data-driven person as well. And some of his questions allowed us to put together the data on what we’d been doing. “And then he started looking at the data, and he said, ‘Well, wait a minute! You’re different than the others based upon the data,’ and I said, ‘Yes.’ “I’ve been saying that but no one’s been listening. It’s really the case that his focus on quantitative measures in many ways allowed UF to demonstrate we are different. And we convinced him of the potential for us to continue to do more. And that’s where he bought into helping us become preeminent.” So much so that in January 2013 the governor reached out to Machen to delay his retirement. A search committee had been underway to identify a replacement for the president of Florida’s second largest university. Scott felt Machen was the visionary needed to lead UF to become a top 10 public university. “It really was an agreement between him and me that this will help the state," Machen adds. “But the governor did not want to change drivers right now. And I said, ‘Okay, I’ll stay on.’” Preeminence is part of a comprehensive education bill passed by the Florida Legislature that affects every stage of public education from kindergarten to graduate school. Scott signed the bill last April. UF and Florida State University were the only two state universities that initially met the criteria for designation as preeminent. As such, they will receive $15 million a year for the next five years. Machen will match that amount with private donations for a total of $150 million. What will he do with the money? One word. Faculty. “In a broad brush, all of this money is going to be used for faculty,” Machen says. “That sounds like a lot of money, but it’s really not. When you think about what it costs today to bring in a world-class scholar, depending on the field—for instance, engineering or the sciences—it could be in the millions of dollars. It’s not just salary but the things they need to move here from where they are, research capabilities, etc. So you think about it, $150 million, but that’s not a lot. “If you look at our dollars with the universities, we are competing with, even with new money we’re still going to be behind.” He went on to say that some of the funds could go towards recruitment of faculty and the graduate students they bring with them, and some funding could consist of start-up packages for researchers. In terms of allocating the resources to faculty, UF administrators will be very proactive on campus. “We’re going to be very entrepreneurial. We’re going to take advantage of opportunities as they emerge, but at this point we have cast a wide net around the colleges on campus and asked them to tell us basically, ‘What would you do to improve our position in the national ranking of universities? And how would giving money to your college help us?’ So we haven’t restricted it. STEM will be a big part of it,

“

If you add the three universities together [UF, UCF and USF], the aggregate impact on this region is significant.” — UF PRESIDENT BERNIE MACHEN

no question. Engineering will be a big part of it. But we think that there are many disciplines on this campus, if given an opportunity, could make significant improvements in their overall performance,” Machen says. Currently, the university has created several committees, including one for fundraising, as $75 million will have to be raised. Administrators and faculty members are working expeditiously. “Right now, we are collecting proposals for top 10 through the colleges. I met today with the chairperson of the faculty senate, and we expect to have direct faculty involvement in helping us make these decisions as well,” says Machen. The president and his administration are energized and on the move. “I mean, the clock has started ticking. So I would think by late fall we will have some initial directions identified and hopefully by next spring we will have made decisions that bring some new resources to the campus,” he said.

As a result of UF meeting all 12 of the criteria, the state is funding its online baccalaureate program, scheduled to launch in January 2014, with $10 million in start-up money. When asked about the Jan. 1 deadline, Machen says, “It’s a very steep ramp with a lot of moving parts right now, but we’re meeting regularly and we have a lot of support from the Legislature. We have some deliverables for September, and I think we’re on track to meet those. “I think it offers Florida residents a great opportunity to get a University of Florida degree without having to come to Gainesville. We have 7,000 online students currently, and we think we could double that in the next three to five years.” Established in 1853, the University of Florida, with its more than 4,000 faculty members, is dedicated to the common pursuit of the university’s threefold mission: teaching, research and service. Machen has developed a fourth mission, that of economic

development. The university has grown its annual research funding from $470 million in 2003-04 to $644 million in the current fiscal year. UF’s 40-acre public/private partnership, known as Innovation Square and the Innovation Hub technology incubator, is designed to foster collaboration among the university and high-tech businesses in downtown Gainesville. Machen mentioned several areas of economic development where the university excels: total patents granted, total licenses granted and total start-up companies (according to 2011 data). “We are in the top five nationally in those three categories already. Obviously we want to maintain it. It also builds off of research, and our research expenditures were 13th. We need to think about how to expand our research capacity,” he says. Companies in the Sid Martin Biotechnology Incubator (see Page 17) have attracted more than $1 billion in funding. Located in Progress Corporate Park in Alachua,

UF plans to build a 21st century economy for the state of Florida. PHOTO: ©ERIC ZAMORA/ UF PHOTOGRAPHY

W FORWARDFLORIDA.COM 31

PREEMINENCE METRICS

The preeminence piece of the legislation outlines 12 metrics that state research universities must meet in order to merit the preeminent designation.

4.0 50 70 200

average weighted GPA of 4.0 or higher on a 4.0 scale and an average SAT score of 1,800 or higher for fall semester incoming freshmen

“

The problem is everyone else is moving too. So even if we move, we just have to move faster than the rest of them.” — UF PRESIDENT BERNIE MACHEN

top 50 ranking on at least two well-known and highly respected national public university rankings

freshman retention rate of 90 percent or higher

six-year graduation rate of 70 percent or higher

six or more faculty members at the state university who are members of a national academy

total annual research expenditures of $200 million or more

total annual research expenditures in diversified nonmedical sciences of $200 million or more

100

top 100 university national ranking for research expenditures in five or more science, technology, engineering or mathematics fields of study

100 or more total patents awarded by the U.S. Patent and Trademark Office for the most recent three-year period

400 or more doctoral degrees awarded annually

400 500

200 or more postdoctoral appointees annually

endowment of $500 million or

32 W EDITION 3 / 2013 • FORWARDFLORIDA.COM

Gators have their eyes on the prize and on the move toward top 10.

the 40,000-square-foot facility formed in 1995 has received numerous awards and, according to a recent study, creates 2.8 times more jobs than the global average for incubators. “Economic development through intellectual property is another venue. It’s all part and parcel—not the whole reason—part of the reason the state felt this was a worthwhile investment. Look at our incubator numbers. It’s a moving target, of course, and everyone else is trying to move it. But if you look at the rationale of the state Legislature to invest money in us, that’s one of the main rationales. We’re going to help build a 21st century economy for the state of Florida,” Machen says. As part of the economic development mission, UF joined the University of Central Florida and the University of South Florida on the Florida High Tech Corridor Council, a regional economic development initiative whose mission is to grow high tech industry and innovation through partnerships that support research, marketing, workforce and entrepreneurship. “UF was not an original member of the High Tech Corridor Council. When I came in 2004, I asked Judy (USF President Genshaft) and John (UCF President Hitt) if we could become part of it, and they said ‘of course.’ And they are very inclusive, and they have been very supportive of us. USF is an emerging economic engine in the Tampa/St. Pete area. Orlando is probably the most dynamic area in the state right now and UCF is doing great things,” says Machen. “So if you add the three

universities together, the aggregate impact on this region is significant.” The 23-county Super Region is fortunate to count these three pillar universities. Their economic might is a strong driver of economic development. While UF presently sits at No. 17, U.S. News & World Report named UCF No. 5 on its list of “up-and-coming” schools for 2013, and three of USF’s graduate health programs are now ranked in the publication’s top 30. With Machen at the helm, it isn’t a question of will UF make it to top 10, but rather when. The Gators are making their move. “I don’t think you will see the overall quantitative ranking change for maybe three years. But I think there are markers within that—that you will be able to see,” Machen says. “We’re tracking 29 markers. We have to maintain our momentum in those areas, and we have the seven focal points that we are going to try to specifically move up on. The problem is everyone else is moving too. So, even if we move, we just have to move faster than the rest of them.” The university already meets 22 of its 29 criteria. Machen’s tenure has been chock full of major successes. Among his milestones: more than 2.8 million square feet in new construction on campus, including nearly 600,000 square feet of new research space; completion of UF’s $1.7 billion capital campaign; UF’s first major medical research facility outside Gainesville, the UF Research and Academic Center at Lake Nona in Orlando; the Machen Florida Opportunity Scholars program,

enabling the enrollment of 2,600 lowincome students who are the first in their families to attend college; and the springsummer Innovation Academy for entrepreneurially minded undergraduates. The president feels personally gratified in having navigated the university through the economic downturn he faced within a few years of taking office. State funding dropped precipitously. “So you think about the last five years, we have tried to manage our institution with declining resources. They took out almost $230 million in budget support,” states Machen. So while there have been challenging times, with the preeminence designation and its attendant funding, how long will Machen continue to lead Gator Nation? When asked about it, Machen smiles. “Top 10 will happen after I am gone," he says. "But the major decisions are going to be made on the front end. The resources, the infrastructure to obtain the resources we need—I’m going to do all that. But that was the commitment to the governor for the first couple years, and after that we will stand back and see what happens.” “President Machen has done an

CFHEA:

exceptional job leading the University of Florida,” says Scott. “Not only is he committed to our higher education system, but he is laser focused on making sure students are prepared to compete in a global economy for jobs. UF is a world-class university, and I am confident he will lead UF into top 10 status.”

editor’s note: at press time, the university announced plans for an $800 million, three-year fundraising campaign as part of the quest for top 10 status. machen has plenty more to say about the super region, the city of gainesville and his partner universities in orlando and tampa. for the “machen manuscript,” go to forwardflorida.com.

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RISING P •R •O •M •I •N •E •N •C •E

With their hands on the wheel and their eyes on the future, presidents Judy Genshaft and John Hitt are steering their universities toward economic greatness. by M I C H A E L C A N D E L A R I A

(At top) USF President Judy Genshaft: “I think people look at us as vibrant, as innovative and having a lot of synergy.” (Above) UCF President John Hitt: “We want to have a great rivalry, on the field. What I don’t want … is a sort of destructive rivalry.”

34 W EDITION 3 / 2013 • FORWARDFLORIDA.COM

Ask Dr. Judy Genshaft how she feels about the University of South Florida being described nationally as “emerging,” and her response is immediate and enthusiastic. “My feeling is that it’s fabulous,” says the USF president, now in her 13th year at the helm. “I love having that kind of recognition. “For us to be an up and comer, I think people look at us as vibrant, as innovative and having a lot of synergy. So, I’ve always viewed that as a very positive comment.” Similarly, University of Central Florida President Dr. John Hitt, who arrived in March 1992, stands tall in full view of UCF’s comparatively short history. Hitt is all about today and tomorrow. And he likes where UCF is headed. He even mentions the word “Disney”—as in a potential Disneyesque impact on the region from what he cites as a top UCF achievement, Lake Nona’s ascending medical city. “People have compared it to Disney,” he says. “I’m not sure of that. Who knows? But it certainly has the potential to make a big change.” The point is, while still lifting themselves up into the rarified economic air of what Hitt calls “our flagship university”—in Gainesville—both USF and UCF have ample reasons to rejoice. Oh, and by the way, their optimism goes beyond the fact that UCF has 60,000-plus students—second most nationally—and the USF System has more than 47,000 students. Mere size doesn’t begin to tell the story of where the universities are, or are going. Rising economic prominence? You bet. For Genshaft, few advances made by her university make her happier than research, where USF is beginning to keep some very fast company. “Now that USF has hit the top 50 of all research universities, whether they be public or private, it’s really an incredible achievement,” she says. “We would say to Harvard or Stanford or the University of North Carolina – Chapel Hill or Ohio State, move over and give us some room. The University of South Florida is here, too.” Only one other university in the state, she points out, conducts more research: the University of Florida. And she adds that USF ranks 10th worldwide among universities granted U.S. patents. Plus, USF is No. 6 in terms of highest endowments of all public universities founded since 1900. Genshaft, though, isn’t particularly moved by current rankings, which she refers to as a “way to look at your own institution and see how it compares with others that have similar missions.” She is more interested in what lies ahead. “We are just going to keep our institution focused, moving forward,” she says.

Genshaft seeks to maintain a global business approach for students, stating: “It’s very important that we are educating our students to have tolerance, understanding and respect for other people and other cultures.”

“Overall, as I look at the University of South Florida, I see such great advancement.” One of most substantial areas is in economic development. Genshaft is a familiar face on several regional boards and commissions. Not coincidentally, she wants USF to be an economic catalyst for both Tampa Bay and the state. “The responsibility of a public university is to educate the students but also to be one of the economic engines for our communities; that is part of our responsibility,” she explains. According to Genshaft, USF garners $411 million annually in grants and contracts, which ultimately leads to local jobs. And, from published data, USF has an annual economic impact of $3.7 billion. “It’s a big synergy that we have,” she cites. For economic impact at UCF, no need to look further than Lake Nona, of course, where roughly $2 billion has already been invested since 2005. The concept of the medical city began when the Tavistock Group, a land developer, donated $12.5 million and 50 acres to UCF to help establish a medical school. The landscape now is rife with collaboration, and UCF’s College of Medicine serves as an anchor. By the end of 2017, the medical city is projected to generate 30,000 jobs and an annual $7.6 billion economic benefit for the region. Of the setting, which Hitt has been widely praised for ensuring success, he says, “It is unusual,

While still lifting themselves up, both USF and UCF have ample reasons to rejoice. And mere size doesn't begin to the the story of where the universities are, or are going. and in many ways remarkable.” Actually, Hitt’s fingerprints on the economic wheel can be traced back to just after his arrival in Orlando. Driving along Interstate 4 to Tampa reminded him of his home state. “I grew up in Texas, and I watched Dallas and Fort Worth grow together,” he says. “What I saw along I-4 was not that different than what I saw happening along the highway between Dallas and Fort Worth. We’re headed in that direction.” Hitt called then-USF President Betty Castor, and later they formed the 23-county Florida High Tech Corridor Council, which UF subsequently joined. The result: more than 3,200 jobs with a direct and indirect economic benefit of $1.3 billion in the past 17 years. Such synergy between UCF and USF might surprise, especially this time of year, when talk of football surfaces. Through the years, the Knights and Bulls have developed a spirited sports rivalry, and for the first time the

W FORWARDFLORIDA.COM 35

“If you think about the kind of problems that you want to be able to take on, your chances of being successful are just a whole lot higher if you do partnerships.” — UCF PRESIDENT JOHN HITT

Hitt, here flanked by friends and with wife Martha on his right, has been lauded for numerous achievements— most notably establishing the UCF College of Medicine.

two will square off in football Nov. 29 as members of the newly formed American Athletic Conference. Hitt hopes to keep the battles on the playing field: “We want to have a great rivalry, on the field. What I don’t want, and I don’t think anybody really does at this point, is a sort of destructive rivalry.” Hitt points to a State University System of Florida Board of Governors’ meeting earlier in the summer, where he and Genshaft dined together along with their respective provosts. “We talked about how we could cooperate to get program funding that would benefit both institutions,” he says. Common goals? Indeed. Separately, however, there is much work to do. Up and coming, after all, means you’re not quite there yet. Regarding the economy, for example, Genshaft seeks to continue a focus on creating regional partnerships by leveraging patents and licenses to spur spin-off companies, commenting, “Nowadays, nothing happens on your own. You need to form partnerships, whether it be with corporations or other universities or other countries.” She adds that although research activity is strong, “we can always grow in our research,” which would foster even more partnerships. Also, Genshaft, who has personally given substantial amounts of money toward student study abroad, seeks to maintain a global business approach for students. “It’s

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very important that we are educating our students to have tolerance, understanding and respect for other people and other cultures,” she says. “Once they graduate, they may be employed by multinational companies, and they need to have that background, the wherewithal, to be able to interact with diverse groups of people and nations. “It’s not the company’s responsibility to do the educating, it’s really higher education that needs to do that kind of training.” For Hitt, the topic of partnerships is particularly near and dear. Among his initial goals in office was to help UCF become “America's leading partnership university.” He is still championing that cause. “If you think about the kind of problems that you want to be able to take on, your chances of being successful are just a whole lot higher if you do partnerships,” he describes. “You just don’t have the resources that you need if you’re out there by your lonesome.” Mostly, and very much related to that ideal, Hitt is thinking research funding. It’s a real challenge. “We need to light a fire,” he concedes, while quickly adding that it’s not about effort. Two years ago, research funding stood at $130 million but declined to $120 million a year ago and fell off again this year. While faculty members are working hard to teach and write research proposals, there simply aren’t enough of them. “We are wearing them [faculty] out. If we’re

going to make the kind of progress I believe we really need to, we’ve got to have either fewer students or find a way to get more faculty members. We need more faculty members,” Hitt says. His interim research mark—a stretch goal, he calls it—is $200 million in funding. And he believes it’s doable, citing a recent $55 million grant from NASA. “We have good opportunities; we just need more of them,” he says. Clearly, rising to the top is not easy. At the same time, for Genshaft and Hitt, there are no signs of their climbs slowing. Each is buoyed by capital campaigns, with USF planning to celebrate successful completion next year while UCF is in the midst and on target. Agendas remain lengthy. “What I try to do as president is make sure the institution is positioned for as many opportunities as possible,” Genshaft says in conclusion. “And I want to make sure it has the kind of substance and status that allows for the kind of economic development that the state and the region needs.” Hitt, who celebrated UCF’s 50th birthday in June and is more than two decades into his tenure, shrugs off any thought of coasting into retirement. “That,” he says with a wince, “would be a horrible way to end my career.” editor’s note: for more about dr. judy genshaft and dr. john hitt, along with their roles and the road ahead, go to forwardflorida.com.

Smart Investment in Higher Ed is the Best Plan to Inspire Innovation By Anthony J. Catanese, Ph.D., FAICP

The value of higher education has never been greater in the history of our world. The 21st century requires an unprecedented level of knowledge and experience to successfully compete in a global environment. Earning a college degree remains one of the best predictors of professional and financial success. Since the end of World War II, the American dream has included the chance to earn a college education. Now, runaway tuition costs are transforming that dream into a nightmare for many, curtailing American competitiveness on a global scale. This is especially detrimental when it occurs at our academies with a technological focus, where professional futures are predicated on educational preparedness in ever-changing fields. Over the past five years, tuition and fees for private, four-year colleges have increased by an average 13 percent, according to The College Board. Tuition and fees for public universities have risen an average 27 percent over the past five years. This comes as the U.S. must increase its graduates in the all-important STEM fields—science, technology, engineering and mathematics. This is particularly critical in Florida, as we strive to diversify our workforce to remain competitive. At Florida Institute of Technology, we have initiated stable tuition for the upcoming academic year. Three factors have empowered us to hold down the cost of college. We continually explore ways to improve efficiencies, reducing the costs of instruction; we have increased our faculty activity, as they secure more grants and contracts for their research; and we have located new sources of external funding, whether philanthropic gifts or state and federal awards. Florida Tech enriches our world by bringing technology full circle through education, research, development and community outreach. It is a model with lessons for other sectors of our society, as we have indeed learned from our business sector partners. Discovery is the critical ingredient in the recipe for scientific progress. Without it, humankind remains stale, stagnant. Florida Tech researchers commit themselves to expanding the current boundaries of knowledge and its applications, always striving to extend the horizon. Whether it be expanding the frontiers of biomedical engineering, or learning how lightning works, that capacity for inquiry is necessary for scientific success. Faculty leadership and expertise in turn serve student success and improve the human condition. That’s what makes Florida Tech The STEM University. Since its founding almost 55 years ago, Florida Tech has taken seriously the notion of education supporting innovation. Florida Tech’s history dates to the early days of NASA. The university’s founder, Dr. Jerome P. Keuper, created Florida Tech when he saw a need for more master’s and Ph.D.-level scientists at Cape Canaveral. Keuper worked for RCA and was one of many pioneers behind the scenes in America’s Cold War-era race for space. He translated the entrepreneurial spirit found abundantly at the Cape into a drive to build one of the world’s best science and engineering universities. He succeeded in realizing his dream. Today, recognized as a “Tier One Best National University,” Florida Tech still embodies the spirit of its founder. In addition to its current faculty and staff, former faculty and graduates make important contributions to the high-tech landscape. Several nationally known companies can trace their humble beginnings to Florida Tech dorm rooms of days gone by.

“Florida Tech enriches our world by bringing technology full circle through education, research, development and community outreach. It is a model with lessons for other sectors of our society, as we have indeed learned from our business sector partners.”

As a private, nonprofit university, Florida Tech is entrepreneurial in its pursuit of “high tech with a human touch” educational opportunities, and will remain so. Our enrollment is up, and our academic reputation continues to grow, particularly given our STEM focus. As an internationally respected Tier One Best National University, we remain committed to providing the best educational environment to foster success—across Central Florida and far beyond. Catanese is president and chief executive officer of Florida Institute of Technology in Melbourne, Fla. He was the founding president of the Florida State University Presidents Association. During his career, he has also served as chairman of the Florida Association of Colleges and Universities as well as the Independent Colleges and Universities of Florida.

Florida Institute of Technology is accredited by the Southern Association of Colleges and Schools Commission on Colleges to award associate, baccalaureate, master’s, education specialist and doctoral degrees. Contact the Commission on Colleges at 1866 Southern Lane, Decatur, Georgia 30033-4097 or call 404-679-4500 for questions about the accreditation of Florida Institute of Technology. Florida Institute of Technology does not discriminate on the basis of race, gender, color, religion, creed, national origin, ancestry, marital status, age, disability, sexual orientation, Vietnam-era veterans status or any other discrimination prohibited by law in the admission of students, administration of its educational policies, scholarship and loan programs, employment policies, and athletic or other university sponsored programs or activities.

MK-504-613

(321) 674-8000 | www.fit.edu 150 W. University Blvd. , Melbourne, FL 32901-6975

SPECIAL REPORT / timely and topical

Stetson's picturesque Palm Court will accommodate a few more students this fall. As part of President Wendy Libby's plan, undergraduate enrollment is up from 2,500 last year to 2,650 this fall. When Libby took office in 2009, enrollment was 2,100. Her goal is to reach 3,000 students by 2016.

TEAMWORK TOUCHDOWN By

Kevin Fritz

THERE IS SOMETHING IN THE AIR AT STETSON University

in DeLand. And soon that something will be literally thrown in the air—namely a football. For the first time this season and incredibly, the first time in 57 years, the university will have a football team take to the field on Aug. 31. All eyes will be on starting quarterback Ryan Tentler, a rising star from St. Patrick High School in Chicago, where he set records in passing and rushing. Tentler and his 119 teammates, led by Roger Hughes (former head coach at Princeton), have been given a wonderful opportunity to play football for the venerable university founded in 1883. The bright lights at the Spec Martin Stadium would not be shining were it not for the collaboration and vision from Stetson,

38 W EDITION 3 / 2013 • FORWARDFLORIDA.COM

the DeLand City Commission and the Volusia County Council. The result: Hatter football is back in an area where it once enjoyed formidable success, compiling a winning record from 1901 through 1956. Stetson, founded originally as DeLand Academy, actually played the first organized football game in the state of Florida, an intramural contest in 1894. WORKING TOGETHER, THE UNIVERSITY, THE city and

the county have created a win-win-win situation. This synergy has led to a new Athletic Training Center, a refurbished Spec Martin Stadium and a football team in the Division I (Football Championship Subdivision) Pioneer League that will undoubtedly bring alumni back to the campus in droves, filling downtown restaurants, shops and bars on the weekends.

DID YOU KNOW?

Following the 1934 season, Stetson was in need of a new head coach. Among the 49 applicants for the coaching vacancy was the legendary Red Grange—known as the Galloping Ghost for his running exploits. He was the student and alumni favorite to get the job. Ultimately, Grange wasn’t selected because his arrival would put “too much stress on athletics, commercialize the university and draw the school away from its intended purpose and mission.”

A team photo from the early days of Stetson football—the year unidentified. Hatter football compiled a winning record from 1901 through 1956. The team returns to play in the Pioneer League.

Call it an economic touchdown. “I really love college football,” says Stetson President Dr. Wendy Libby, who began her tenure in 2009 as the university’s first female president. “It has to do with competition, spirit and bonding with the students. Here in town, everyone is talking about it.” Libby adds that, as a student, she cheered on the Big Red of Cornell University. According to Michael Pleus, DeLand city manager, Stetson football is expected to deliver a 12-to-1 return on the city’s $3.5 million investment to renovate its municipal stadium. The university currently generates an estimated quarter-billion-dollar economic impact on the city of DeLand. “I always thought [bringing football back] would be a good idea even when I was a Stetson student,” Pleus says, pointing out that the former Stetson administration didn’t necessarily see it that way. “But when President Libby came on board, she was looking at ways to boost the university and eyeing football as a strategy.” The game plan has worked to near perfection. AND LIBBY IS NOT ALONE IN HER THINKING.

The Hatters’ first game is against nearby Warner University in Lake Wales, which has added football to its sports program for the first time. In fact, in 2013, 12 schools will add the sport, including a record nine new teams joining the NCAA. Also among them is Florida Tech. The Panthers are set to play at the NCAA Division II level. Libby contends without the city’s involvement, there would be no kickoff. “We could not have done it,” she says. “Building a $40 million to $80 million football stadium was not in the plans.” However, because the city had an existing stadium that could

be refurbished to meet the standards of Division I football, returning the gridiron pastime to Stetson has now come to pass. Pleus explains that the Spec Martin Stadium renovations were made possible through an agreement that Stetson pays an annual rental fee of $80,000 and shares revenue from sponsorships and advertising, as well as a commission on concessions and parking. The agreement is similar to one between the city and the university for the use of Melching Field at Conrad Park by the Hatter baseball team. The plan to renovate the stadium was further bolstered by a $1.4 million grant from Volusia ECHO, a countywide, voterapproved tax program used for environmental, cultural, historical and outdoor recreational purposes. To get ready for kickoff, Spec Martin Stadium, built in 1941 with a seating capacity of 6,000, houses refurbished locker rooms; and boasts a three-story press box, new stadium lighting, new sound system and a $445,000 LED scoreboard. The university shared the cost of the scoreboard with the city. In another city-university partnership, DeLand will run a free trolley service to help offset the anticipated parking shortage during this season’s six home football games. There are approximately 600 parking spaces near the stadium. “This is a new concoction,” Pleus describes about the new throngs expected in DeLand on Saturdays. PLEUS EXPLAINS THAT A MINI-BUS WILL

loop every 15 minutes to designated off-site lots, starting two hours before kickoff and stopping two hours after the game. Those free lots are located in the downtown area, a fact that excites business owners. People

Dynamic duo: DeLand Mayor Bob Apgar and Stetson President Wendy Libby.

who park for free and take the shuttle will likely patronize businesses before and after games. It’s not just football, though, that is garnering attention from Stetson and city officials. In what is expected to bring more out-of-state students to DeLand, Libby has also improved Stetson’s Division 1 athletic program by adding women’s lacrosse and sand volleyball as intercollegiate sports. She also recently opened the $6.7 million, 25,000-square-foot Athletic Training Center, which features a game-day field and separate practice field for soccer and lacrosse, and a field house with a strengthand-conditioning center to be used by all Stetson athletes. It also includes two practice fields for football. Stetson is now home to 18 intercollegiate team sports and 17 club sports, the latter of which Libby believes already helps keep students in town on weekends. THIS ADDITION TO STETSON ATHLETICS IS

all part of a grand plan to increase enrollment and dollars coming into the university and the city’s coffers. Enrollment is up from 2,500 last year to 2,650 this fall. When Libby took the helm in 2009, enrollment was 2,100. Her goal is to reach 3,000 students by 2016. Libby concludes, however, that beyond all the hoopla—which she does thoroughly enjoy—athletics is only one piece in her plan to grow the university and support the community in which it resides. She cheers loudest for academic excellence. “Clearly and unambiguously,” she says. However on Aug. 31, the fans may drown her out. Stetson football is back.

W FORWARDFLORIDA.COM 39

HOW2

/ expert tips and advice

ENTREPRENEURSHIP

LIMITING EXPOSURE Yes, business liabilities can become your personal liabilities—if you don’t pay attention. by ED ALEXANDER ENTREPRENEURS FORM BUSINESS ENTITIES

such as limited liability companies, corporations and limited liability partnerships to protect their personal assets from business debts. Usually, the owner’s risk is limited to the amount invested. Unfortunately, you can get into trouble with your entity so that the business liabilities become your personal liabilities. The good news: Avoiding that trouble isn’t difficult. You just have to remember a few simple rules. First, whenever you’re doing business it must always be in the exact entity name. If you’re in business as Acme Industrial Enzymes Corp., that exact name should appear on all of the company’s checks, contracts, invoices and employee business cards. Never use a shortened name, such as AIE Corp., or any other name, unless you’ve filed a fictitious name registration with the state. Even then, the true name should still appear on all business documents. Also, make sure the fictitious name is actually owned by the entity and not its owners. Next, when signing for your business, make sure all contracts are in the entity’s name, always include your title with your signature (John Smith, President) and cross out terms making the signer a personal guarantor. Recently, I heard of a situation where an owner was sued when he signed a contract in a slightly different corporate name and didn’t include his title. The creditor claimed the owner was acting as a sole proprietor and was personally liable when the corporation didn’t pay. The owner paid a settlement when a few simple changes would have protected his money. Third, remember that if you, personally,

40 W EDITION 3 / 2013 • FORWARDFLORIDA.COM

do something that injures another, even on the job, you’re probably personally liable. Take, for instance, a one-person bakery. Our entrepreneur rises early to bake the bread then drives around town making deliveries to local shops. One morning, he causes an accident. Even though the bakery owns the truck and operates the business, the entrepreneur will be liable because he was driving. So, you should always have adequate risk and casualty insurance. Fourth, you can’t treat the entity as your personal slush fund. Being in control, you could be liable to its creditors for paying out or taking money improperly. For example, you can’t pay yourself a dividend, remove assets or bleed the entity dry, leaving it penniless so it can’t pay creditors. You also can’t pay debts the entity owes you and other “insiders” before paying outside creditors. You can, however, pay yourself your usual salary and other customary expenses. But, be careful about giving yourself a large raise as the ship is sinking. Fifth, make sure you follow the formalities of your entity. Pay the annual fee so your entity is not administratively dissolved or terminated. Keep your entity records and documents

properly. Actually have member/shareholder/partner and manager/director meeting minutes. Issue stock certificates and adopt bylaws. After all, you won’t know you have a problem until you need the protection! Finally, avoid guarantees whenever possible. Guarantees are enforced all the time. Years ago, another lawyer told me that 10 feet of water over his client’s head was the same as 1,000 feet. Many owners take comfort in this theory when considering a guarantee. But, remember, even if you can’t pay it, a judgment will prevent you from borrowing money to buy a home or car. You probably won’t get out of guarantees for banks. But don’t accept them as “standard” in leases and supplier contracts. Often, you can provide a larger deposit or play one supplier off against another to avoid the guarantee. If you pay attention to these areas, you can get the most liability protection from your business entity. editor’s note: ed alexander is founder of the entrepreneurship law firm in orlando and author of the book “10 common and costly business killing legal mistakes and how to avoid them.” he works regularly with the university of central florida’s business incubation program, among other regional business clients. [orlandobusinesslawyer.com]

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HOW2

/ expert tips and advice

of retaining talent lead to thoughts of paying more money … but here’s the interesting twist: Research and our experience working with clients around the world tell us the following: • Top reason most employees say they will quit? Money. • Top reason most employees say they did quit? Money. • Top reason most employees really quit? Bosses.

LABOR

RETAINING TECHNICAL TALENT

IT’S NOT ABOUT LUCK OR MISFORTUNE. EXECUTIVES HAVE A POWERFUL RETENTION SOLUTION AT THEIR FINGERTIPS. AND IN CONTRAST TO THE HIGH COST OF LOSING GOOD PEOPLE, THE COST OF RETENTION IS FREE. By

Richard Finnegan

While the media continues to report U.S. unemployment around 7 percent, Central Florida technology executives risk falling into the trap of believing that their key employees have few other job choices. The below story tells a different tale that sounds like fiction but actually happened recently. I met with the top recruiter from a nameyou-know global technology company in the lobby of a Walt Disney World hotel. He was in town for succession planning meetings and had identified the players they needed for the next five years. I said I was surprised they had that much internal talent, and he said they did not. But through LinkedIn and other tools, he had targeted their needed talent and had already transposed the

42 W EDITION 3 / 2013 • FORWARDFLORIDA.COM

photos of targeted technicians from other companies onto their organization charts. That’s how sure he was he could attract them. In other words, one or more of your key players’ smiling faces might be on their charts and will soon be getting a call. Or a hundred calls. If you have the courage, ask your best players how many headhunters call each week and you might get a chill. We have moved dog years past the Great Recession when measuring the needs for technical talent. Unemployment for anyone with a college degree is just 3.9 percent and this includes artists, musicians and sociology majors like me. For most technology executives, thoughts

Studies by Gallup, Yahoo and the Saratoga Institute all tell us this is true, and another study by global consulting firm Kenexa drives the point home in can’t-miss fashion. Kenexa interviewed 1,000 workers who recently quit and found that how much they liked their pay, benefits, development and advancement was directly correlated with how much they liked their bosses. Said another way, “Bad boss means pay is bad, too.” There are outliers for sure—workers who will make almost any change at any time for more money. But the data takes us to a clear path that while money matters, direct supervisors matter more. And they need to be your retention point of attack. Our clients in technology and health care, both in the U.S. and across China, have discovered that people problems and solutions are basically the same in any work environment. People want: • challenging work they like to do, • to work with colleagues who pull their fair share, • to work for managers who they trust. All three of these conditions are completely controlled by their managers. Executives, then, have a powerful retention solution at their fingertips that is free: Tell supervisors on every level that they are responsible for retaining their talent, and then assign retention goals and hold them accountable. Next, teach them to conduct stay interviews with continuing employees and new hires on an established schedule so they learn why employees stay and what will make them stay longer. Focus on duties they have and duties they want, projects that are important to their development, new information that intrigue them, colleagues they want to work with, and behaviors they want their managers to change. Then build customized “stay” plans

HOW2

/ expert tips and advice

for each employee and make those plans happen as appropriate. As a finishing touch, ask managers to forecast how long each employee will stay. Then develop reports that include stay forecasts and performance ratings so you at the top can track the retention likelihood of your best performers and ask to see stay plans along the way. When employees do quit, ask managers to disclose their stay plans and forecasts for exiting employees so they learn they are accountable for their talent. Doing so also fine-tunes their skills for conducting stay interviews, developing stay plans and forecasting future turnover. Companies we know apply this step-by-step approach to reduce employee turnover by 30 percent and more. Above is a graphic representation that adds a twist. We start with costs, as we know CEOs value talent but will value it more if they assign dollars to it first. When the CEO of Webroot learned that losing one software engineer cost $131,000 to replace, he immediately established retention goals and quickly held his managers accountable for turnover.

RETENTION FORECASTING One Central Florida technology client uses a retention-forecasting chart similar to the one here so executives always know the retention status of top performers. In this chart, managers on all levels input their forecasts for how long employees will stay based on stay interview results, with green indicating the employee will stay at least one year, yellow indicating six to 12 months and red indicating zero to six months. Managers are then charged to take actions to move top performers from red to yellow to green.

We like to ask CEOs if they can think of any manager on their teams who fails to build trust with their employees. So far, every CEO has thought of at least one, and this drives home another reason to start retention strategies with managers first. Asking managers to achieve retention goals and forecast future turnover are not just tools but also retention solutions, as they alone generate change. Skilled managers will achieve their retention goals most of the time and fine-tune their forecasting

skills by conducting stay interviews effectively. Other managers will either beef up their skills or tell you with their results that they might be in the wrong chair. And that can be a very, very expensive chair. editor’s note: richard finnegan is ceo of c-suite analytics and author of two books, rethinking retention in good times and bad and the power of stay interviews for engagement and retention. “stay interviews” brought less than 1,000 google hits when finnegan wrote that book but now generates hits that exceed 300 million. [dfinnegan@c-suiteanalytics.com]

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W FORWARDFLORIDA.COM 43

LEGISLATIVE REPORT

/ policy making in action

IN TALLAHASSEE CURRICULUM BATTLE. Florida

SUMMER SWEAT TOUGH DECISIONS ABOUT STUDENT LOANS, AFFORDABLE CARE, THE INTERNET TAX AND MORE PUT LEGISLATORS ON THE HOT SEAT. WASHINGTON REPORT STUDENT LOAN FIX.

As Florida works to further enhance its already renowned higher education system (see cover story), Congress played a game of political chicken with the federal student loan program that provides critical funding for roughly 60 percent of the state’s college students. The solution that emerged was described as a long-term “fix,” but students will face escalating interest rates on a range of loans during the next few years. For now, though, interest rates that briefly doubled in July to 6.8 percent will be reduced to less than 4 percent in time for the 2013-14 academic year. The interest-rate crisis was precipitated by the expiration of a 2007 law that dropped interest rates from 6.8 percent for most loans in the 2007-08 academic year to 3.4 percent for the past two academic years.

Rates returned to 2007-08 levels when the law sunset June 30. For almost three months, Congress wrestled with how to solve a problem that everyone agreed needed solving. On the last day of July, the House ended the ordeal by accepting the Senate's version of the fix and sending it to President Obama for his signature. The final bill sets the interest rates for federal direct loans to undergraduates at the 10-year Treasury Bill rate, plus 2.05 percent (3.86 percent for 201314), with a cap of 8.5 percent. For graduate/professional students, the rate is the T-bill plus 3.6 percent with a cap of 9.5 percent, and for loans made to students' parents, known as PLUS loans, it’s the T-bill plus 4.6 percent with a cap of 10.5 percent. That ultimately it was the Senate’s version of the bill that went to the president is ironic because it was in the Senate

44 W EDITION 3 / 2013 • FORWARDFLORIDA.COM

that the legislation stalled for nearly two months. At issue was the proposal to tie student loan rates to the T-bill rate, a concept embraced by President Obama and the House GOP leadership but opposed by many Democratic senators. Proponents call the T-bill approach fiscally responsible, controlling loan rates while permitting them to increase as the cost of government borrowing rises. Critics deride it as a politically expedient measure that eliminates the immediate crisis while potentially putting loan rates out of reach for college students in future years. The House had passed a bill in May that tied student loan interest rates to the T-bill rate. The initial interest rate in that bill was slightly higher than in the final version. Senators, though, repeatedly failed to invoke cloture and vote on a bill that would have extended the 3.4 percent rate for another year. After reaching the compromise to adopt the House concept, but with a lower initial rate and smaller spread between the T-bill and loan rates, the measure breezed to final passage, 81-18. Both Florida senators—Bill Nelson and Marco Rubio—voted for the

is among the latest states to become embroiled in a growing controversy over an effort to harmonize education standards among the states, and some heavy hitters in Tallahassee and Washington are beginning to weigh in. At the heart of this burgeoning battle is the Common Core State Standards, an educational initiative of the National Governors Association and Council of Chief State School Officers. The program was created in response to the education reforms in many states that include increased accountability for student performance. The goal was to take the initiatives occurring in the states and create a challenging, more standardized curriculum among the states. Started in 2009, the standards have been adopted by 45 states, including Florida. Implementation is scheduled for the 2014-15 school year. After staying largely under the radar its first three years, the initiative has been attracting critics from numerous states in 2013. The chief complaint is that, in the rush to toughen educational accountability, states and communities are sacrificing too much local control of children’s education.

In late July, State Senate President Don Gaetz and House Speaker Will Weatherford wrote Education Commissioner Tony Bennett, who has since resigned over an unrelated issue, expressing concerns about plans to utilize a nationwide testing system to measure students’ performance on the standards. Florida is one of 22 states that has agreed to implement the standardized testing. Meanwhile, grassroots opposition grows. Concerned parents have formed Florida Parents Against Common Core. Central Florida Coordinator Stacie Clark of Oviedo was quoted in the Orlando Sentinel as saying, “We need to look at everything tied to Common Core.” Sen. Marco Rubio has joined in the criticism, saying he believes in tougher education standards but also thinks they should be handled at the state level. Intriguingly, this puts him in direct conflict with former Gov. Jeb Bush, a longtime champion of the standards. CRISAFULLI’S PROMOTION.

Super Region Rep. Steve Crisafulli, already in line to be the next Florida House Speaker, got a promotion in late July when current Speaker Weatherford appointed him House Majority Leader. Crisafulli, Rep. Steve R-Merritt Crisafulli Island, will serve as the No. 2 leader until Weatherford’s term as speaker is up. Weatherford touted the move as a logical step for someone slated to become speaker next year. For his part, Crisafulli tweeted, “Excited and honored to serve as Majority Leader. Thanks (to Weatherford) for this opportunity!”

LEGISLATIVE REPORT

/ policy making in action Rep. Ron DeSantis staunchly opposes the Internet Tax. Jason Spillers, a small business owner, helped DeSantis by telling his story on YouTube.

bill on final passage. Harmony also prevailed in late July when the House agreed to accept the Senate version Sen. Bill Nelson of the measure. It passed 329-31, with 21 of the Super Region's 23 representatives supporting the bill. Reps. Daniel Webster, R-Orlando, and C.W. Bill Young, R-Indian Shores, did not vote. FLORIDA AND THE ACA. The Super Region’s congressional delegation has divided along partisan lines regarding the Patient Protection and Affordable Care Act, called the ACA by policy wonks and “Obamacare” by everyone else (including, often, the president himself). Virtually every Super Region Republican has released statements, tweeted, given interviews and used every medium short of the town crier to voice concerns about the law as the Jan. 1 implementation date looms. The region’s Democrats are somewhat less vocal in its defense, though Rep. Corrine Brown, D-Jacksonville, consistently has touted her

support. However, the rhetorical battles between Rubio and the administration are becoming epic. During a nine-day period in July, 15 of the senator’s 18 official tweets criticized the ACA. Most called for defunding the law. Sunshine State News highlighted the battle during Obama’s July economic speech in Jacksonville, noting the president criticized congressional Republicans for “an endless distraction of political posturing” that leads Washington to keep “taking its eye off the ball.” Rubio, in a video release available on YouTube and elsewhere, said Obama’s speech called for “more spending and a bigger role for the federal government.” The senator also said, “the most pressing economic threat we face right now is Obamacare and its implementation, and all the president wants to do is postpone some of its more controversial aspects until after the next election.” Don’t expect this war of words to die down anytime soon. DESANTIS AND THE INTERNET TAX. Rep. Ron DeSantis,

R-Ponte Vedra Beach, and some

powerful Florida retailers are locked in a battle over Internet sales tax legislation. The legislation, which passed the Senate earlier this year (Nelson supporting and Rubio opposing), would permit a state to collect taxes on out-of-state goods sold into the state via the Internet. Many traditional retailers support the concept, feeling outside Internet vendors rob them of business. The Florida Retail Federation is leading the charge for the “brick-and-mortar” retailers, and a Florida Times-Union column in early July noted the group was using a barrage of news releases in support of the tax, which has yet to come to a vote in the House. The federation increasingly is locked in a battle with DeSantis, who opposes the tax as harmful to small business. The column portrayed him as unfazed, saying of the fight: “I honestly think it is helping me.” More recently, DeSantis has used a combination of Twitter, YouTube and traditional media to strike back. In mid-July, he posted to YouTube a video from Jason Spillers, owner of Coastal Moto in Ormond Beach. Spillers says the tax would stifle growth and perhaps sink his business.

W FORWARDFLORIDA.COM 45

“There Is No Participation Fee”

APPLY TODAY! www.orlando.org/pli

APPLICATION DEADLINE Wednesday, August 28, 2013

Interested in running for public office? Thursday-Saturday, Thursday-Saturday, October October 24-26, 24-26, 2013 2013 Roy Roy E. E. Crummer Crummer Graduate Graduate School School of of Business Business at at Rollins Rollins College College

HOW2

/ expert tips and advice

HEALTH CARE

PAY OR PLAY ON HOLD The employer shared responsibility penalty has been delayed in the Patient Protection and Affordable Care Act. Now what? by NICOLE FALLON

In July, the Treasury Department announced it would delay the employer shared responsibility penalty (a.k.a. “pay or play” penalty) contained in the Patient Protection and Affordable Care Act (PPACA or ACA) until Jan. 1, 2015. This ACA initiative requires large employers (with 50 or more full-time employees plus full-time equivalents) to either offer minimum essential and affordable coverage or pay a penalty. Originally, this aspect of the law was scheduled to take effect Jan. 1, 2014. A reprieve? Not really. Many elements of the law will still go into effect, and employers should keep preparing for implementation of other requirements. Since the announcement, the Obama administration has continued to clarify what this delay means for employers and how it impacts the implementation of other portions of the law scheduled to take effect Jan. 1, 2014. FOR EMPLOYERS

Large employers will not need to offer their full-time workers and their dependent children minimum essential and affordable coverage in 2014. They will not have to file an information return with the IRS indicating who their full-time employees are, what coverage they offer, which employees are enrolled, etc., in 2014. Employers, however, still face an Oct. 1 deadline to identify the coverage options available to all employees (full- and part-time), regardless of the employee’s enrollment

status in the employer plan prior to Oct. 1, 2013. They will also need to provide:. • Descriptions of the new state and federal health insurance exchanges (also called marketplaces), services offered and contact information. • Details on eligibility for assistance to purchase insurance through the exchanges. • Information regarding the employee’s loss of eligibility for employer contribution to health benefits if insurance is purchased through an exchange. Employers also had to pay various fees under the ACA, including the Patient Center Outcomes Research Institute (PCORI) fee by July 31, if self-insured. (The fee is $1 per enrollee for 2014, based on the number of employees reported on IRS Form 720.) Similarly, the transitional reinsurance fee of approximately $63 per enrollee must be submitted at the end of 2014 by employers for self-insured plans and by insurers for fully insured plans. Employer responsibilities that have not been delayed include the following: • Ensuring that the employee waiting period for enrolling in employersponsored insurance coverage does not exceed 90 calendar days (beginning in 2014) • Providing a summary of benefits and coverage when plans are changed • Ensuring that out-of-pocket maximum limits do not exceed $6,350 for individuals and $12,700 for families ($2,000/$4,000 for small employers), beginning in 2014 • Reporting the value of the health care coverage on their employees’ W-2 forms. (Employers issuing fewer than 250

W-2s are not required to comply per IRS Notice 2011-28 until further notice.) FOR INDIVIDUALS AND EMPLOYEES

Federal and state exchanges are still scheduled to open for enrollment Oct. 1. All individuals will still need to obtain minimum essential coverage in 2014 or pay a penalty when they file their 2014 taxes. (This is the “individual mandate.”) People who earn between 100 percent and 400 percent of the federal poverty level, and do not have access to affordable coverage through an employer, will still be eligible for exchange subsidies—premium tax credits, and/or cost sharing assistance. Finally, insurers cannot deny coverage to an individual for a pre-existing condition. REMAINING FACTORS

Many questions remain unanswered about the law. For instance, how does one determine if employees like truck drivers, adjunct professors, missionaries and consumer-directed caregivers are full-time employees? Additionally, earlier guidance from the IRS offered employers some transition relief in preparing for the 2014 implementation. The delay notice and corresponding regulations issued as of July 12, do not address whether the 2014 transition relief will be applicable for determining whether an employer is considered a large employer or identifying which employees are considered full-time for the Jan. 1, 2015, implementation. Therefore, expect additional guidance in the coming months. For more information on this topic, including what to do now, go to forwardflorida.com. editor’s note: nicole fallon is a health-care consultant with cliftonlarsonallen, one of the nation’s top 10 certified public accounting and consulting firms. [www.cliftonlarsonallen.com.]

W FORWARDFLORIDA.COM 47

WELLNESS / your personal bottom line

LIGHTENING THE LOAD Simply put, manage stress … or it will manage you.

Stress is unavoidable. Whether we face it in our business or personal lives, it most assuredly lurks. The question becomes what do we do when we come face-to-face with this unwanted emotion? Like all successful businesses that have a crisis communications plan in place, we as individuals must have a stress management program.

48 W EDITION 3 / 2013 • FORWARDFLORIDA.COM

Too many of us come up short when it comes to training and preparedness for stress. We can just turn on the television or browse the Internet to witness some pretty horrible ways people “lose their cool” when faced with high-stress situations. Let’s look at several strategies, some easy to implement and a few more ambitious, for people wanting to lighten their stress load. TAKE A BREATH BREAK. The authors of

the book 8 Secrets of a Healthy 100 offer some great breathing suggestions. Proper breathing invigorates your body, mind and spirit. It helps you relax, think more clearly and have more energy. Take 10 minutes a day (or whenever you need a boost) to do the following deep breathing exercise: 1. Sit or stand comfortably with your back straight but relaxed. 2. Inhale through your nose slowly for a count of four. 3. Inflate your belly (not your chest) like a balloon. 4. Hold your breath for a count of four.

5. Exhale slowly through your mouth for a count of seven, expelling as much air from your lungs as you comfortably can. 6. Repeat this exercise three or four times. As your body becomes more used to this activity, you can increase the duration of the breaths or the number of breaths you take. Just be sure to stop if you feel dizzy or faint. To further enhance the experience, use this time of deep breathing to meditate or pray. Once you make deep breathing a regular part of your routine, you may find you get more energy from taking a breath than from a coffee or snack break. THINK NUTRITION. Make sure you are eating well. You can be doing everything correctly to manage your stress, but without adequate nutrients for cellular repair, the body can’t repair itself. Protein and fiber-rich foods will help provide energy for a busy schedule. Complex carbohydrates—whole grains, vegetables and fruits—are excellent choices. Carbohydrates cause the body to release a hormone called serotonin, which can improve a person’s mood. It is best to

WELLNESS / your personal bottom line avoid high-calorie, high-sugar and whiteflour choices. MOVE. Our bodies were made to move.

Holding static positions (like sitting in front of a computer all day) is not natural. Taking a break often to stretch and engage in a few range-of-motion exercises will help keep things flowing. STAY POSITIVE. Our thoughts really do have

an effect on our health and outlook on life. Taking a few minutes each day to recap all of the things that are going right in your life will go a long way towards keeping those unexpected speed bumps in perspective. It has been shown that positive affirmations help, too. LAUGH. Whenever the opportunity presents

DO YOGA. The ancient Indian practice of

term for the physical, mental and spiritual practices or disciplines with a view to attain a state of permanent peace, yoga was brought to the West in the late 19th century by Hindu monks. There are many different types of yoga to practice, so do your homework to determine which is best for you. Among popular types of yoga are Bikram, Hatha, Vinyasa, Kundalini, Ashtanga, Iyengar and Anusara.

yoga has become quite popular. A generic

editorial sponsored by florida hospital.

itself, or especially when it doesn’t, laughter works wonders! Even in the middle of difficult circumstances, try to find the humor in your situation. The physical act of laughing triggers an increase in endorphins, the brain chemicals known for their feelgood effect.

PUT A HOLE IN YOUR STRESS BUBBLE Garry Welsh realized his mistake too late. And there was no way he could let on to the woman he had just started dating. They had spent the afternoon together, and Christine was returning home. Garry wanted to go back for a jog and asked her if she would drop him off somewhere along the way so he could run back. They started talking, and before Garry knew it they had driven nine miles. Garry was a novice runner at the time, nothing longer than two miles. “So I put on a straight face and said, ‘Just drop me off here; this will be fine.’ She was impressed that I could run nine miles,” he said. “I made it back somehow! I was just a young guy then. Exercise was less of a priority in those days.” That was more than 20 years ago. Garry and Christine, now his wife of 24 years, have continued to exercise and do their best to stay fit. Garry, 49, is training for an Ironman triathlon—140.6 miles of swimming, biking and running. Christine, 53, is an avid golfer and is preparing for her third half-marathon this fall.

“OUR THOUGHTS REALLY DO HAVE AN EFFECT ON OUR HEALTH AND OUTLOOK ON LIFE. TAKING A FEW MINUTES EACH DAY TO RECAP ALL OF THE THINGS THAT ARE GOING RIGHT IN YOUR LIFE WILL GO A LONG WAY TOWARDS KEEPING THOSE UNEXPECTED SPEED BUMPS IN PERSPECTIVE.”

Garry and Christine Welsh, shown with youngest son, Christopher, have changed their lives through exercise.

“Keeping active every day is important,” said Garry, who is using his triathlon to raise $140,600 for lung cancer research at the Florida Hospital Cancer Institute. Staying fit not only serves your body but can help you emotionally, as well. In addition to being a great way to take care of your heart and control your weight, exercise can let the air out of your stress bubble. Christine, a mother of four and nonsmoker, has recovered from lung cancer surgery last year. Running, she says, is a great way to free her mind: “When you’re out there running, you’ve just got your own thoughts and nothing else interfering with that time.”

For Garry, exercise helped him through the stressful six-day period when Christine was hospitalized and undergoing tests to confirm her cancer. “The exercise helped to keep me positive,” he recalled. “When she was in the hospital, I would sneak out for a couple hours to do a run, a swim or a bike ride, and then I would come back feeling energized and ready to help Christine with her recovery.” The Welshes have been on the move, not just through their respective exercise regimens. They relocated to Central Florida from England in 2006. The couple and their four children had been vacationing in Orlando for years. Along the way, they bought a vacation home near Kissimmee. They moved here because of a desire to test themselves and push their boundaries. Now calling Central Florida home, they continue that push. — ALEX BEASLEY, GUEST BLOGGER, MEDICAL WRITER AND EDITOR

W FORWARDFLORIDA.COM 49

PARTING SHOT / people and places across the super region

NATHAN BENDERSON PARK SARASOTA

50 W EDITION 3 / 2013 â&#x20AC;˘ FORWARDFLORIDA.COM

The question is: Will Nathan Benderson Park serve as the host venue for the 2017 World Rowing Championship? The official decision between Sarasota and Bulgaria wonâ&#x20AC;&#x2122;t come from the International Federation of Rowing Associations until September. (Sarasota is a virtual lock, following a formal recommendation by the Council of the International Federation of Rowing Associations in August.) At stake is a projected $24 million local economic impact. Yet, the popular park and its 2,000-meter rowing course already are winners. In September, Nathan Benderson Park will be awarded the 2013 Florida Award of Excellence from the Florida chapter of the American Planning Association. Also, the park hosts the USRowing Masters National Championships in August. Benderson Park exemplifies regional cohesion, as Sarasota and Manatee county officials teamed to submit the world championship bid in June. photos courtesy of suncoast aquatic nature center associates

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