Nov. 2 issue for Graphic Design

Page 1

GULF COAST

NOVEMBER 2 - NOVEMBER 8, 2012

Business Review FIRST UP:

LESS STRESS Three hospital colleagues take a chance with a new ice cream concept. Page 7

THREE DOLLARS

STORY ON PAGE 9

CHEERS:

Corner Office

TURNING TABLES SEE PAGE 10

An inside look at the workspace of a leading floral business owner.

A group of four partners brings a new attitude to a chain’s ailing locations.

Companies • Trends • Entrepreneurs • CEOs

The Weekly Newspaper for Gulf Coast Business Leaders

Burger Blitz

The man who brought us Domino’s Pizza starts a new food delivery business — high-speed hamburgers. PAGE 12 Nancy DeNike

GULF COAST BUSINESS BUZZ

+ Algenol’s not-sosecret investor Algenol Biofuels in Bonita Springs has been spending big money on research and development of ethanol from algae.

Credit Suisse report that identified the source of the funding. Reliance, headquartered in Mumbai, is the largest privatesector company in India and has interests in petrochemicals, oil refining and gas. The company earned $1.9 billion on revenues of $35.6 billion through the first half of the year. Algenol currently employs 160 people. Its Lee County test facility is currently developing ethanol production from algae with a target cost of less than $1 a gallon.

+ Hulk Hogan, wrestler ... and restaurateur?

It isn’t easy keeping a secret when it involves an entrepreneur as flamboyant as the wrestler Hulk Hogan, aka Terry Gene Bollea. Workers are putting the finishing touches on the redesigned restaurant currently known as Crabby Bill’s at the Bay Harbor Hotel on Tampa’s Courtney Campbell Causeway. The site is abuzz with activity, and trucks and cargo containers have commandeered

one of the parking lots. Hotel employees and contractors officially remain mum on the project, but they admit — hush, hush — that Bollea is involved with the Rocky Point restaurant project, potentially as an investor or owner. “Lawyers are working it out,� a contractor told Coffee Talk Tuesday, with a deal expected to become official in January. Hotelier Ben Mallah bought the hotel in April and has been

See COFFEE TALK page 3

85356

COFFEE TALK

In an interview with the Business Review last year, Algenol Founder and CEO Paul Woods said at the time that an undisclosed Asian conglomerate had invested close to $100 million in the company refinery test plant in Lee County. Now we know who that investor is. Biofuels Digest, a publication that tracks the industry, reported recently that Reliance Industries Limited, an Asian energy conglomerate, has invested $94 million in Algenol. The publication cited a

1 0O\Y Q][ Â’ &%% $$

$#

MEMBER FDIC

2

Are you ready to

PLAY OR PAY?

GULF COAST

Business Review A DIVISION OF THE OBSERVER GROUP INC.

www.review.net

With the ongoing Health Care Reform Laws, what will the financial impact be for you the employer and your employees?

TAKE CONTROL! $POTJEFS UIF GPMMPXJOH CFGPSF JU T UPP MBUFy

The Gulf Coast Business Review is Southwest Florida’s newspaper for business leaders. With offices in Hillsborough, Pinellas, Pasco, Manatee, Sarasota, Lee and Collier counties, the Review is the only weekly business newspaper that provides business leaders, entrepreneurs, CEOs and investors with a regional perspective. The Review’s mission is to deliver relevant news and information on Southwest Florida’s leading and growing companies, up-and-coming entrepreneurs and the important economic, industry and government trends affecting business. The Business Review is also the leading publisher of public notices on the Gulf Coast of Florida.

Don’t just let anyone help you out‌

t *T HPJOH UP UIF &YDIBOHF B better option for us?

Let K&P, part of the 3rd largest Underwriters in the country offer you the latest technology. A program developed by the leading American College professor on Health Care Reform in which we provide you the insight as to what direction to take.

t 8IBU BSF UIF UBY JNQMJDBUJPOT to the employer? t 8IBU JT UIF ĂśOBODJBM JNQBDU to the employees?

GULF COAST BUSINESS REVIEW NOVEMBER 2 – NOVEMBER 8, 2012

www.review.net

Editor and Publisher / Matt Walsh, mwalsh@review.net Managing Editor / Kat Hughes, khughes@review.net

Associate Publisher / Diane Schaefer, dschaefer@review.net

Deputy Managing Editor / Mark Gordon, mgordon@review.net

Director of Legal Advertising / Kristen Boothroyd, kboothroyd@review.net

Editor-Lee/Collier / Jean Gruss, jgruss@review.net

Advertising Production Manager / Kathy Payne, kpayne@yourobserver.com

Editor-Tampa Bay / Denise Kalette, dkalette@review.net

LEADING EXPERTS IN:

Web Editor / Amanda Heisey, aheisey@review.net Editorial Design / Nicole Thompson, nthompson@yourobserver.com

t &NQMPZFF #FOFĂśU 1MBOT Rich Pierro

t #FODINBSLJOH

President ChFC, ChHC, CLU, RHU

t #VTJOFTT $POTVMUBOUT

Josh Kitchner Vice President

Rich@KPins.com or JKitchner@KPins.com

5570 Gulf of Mexico Dr., Longboat Key, FL 34228 Phone: 941/362-4848 Phone: 941/906-9386 (Legal Notices) Fax: 941/954-8530

412 E. Madison St., Suite 911 Tampa, FL 33602 Phone: 813/221-9505 (Legal Notices) Fax: 813/221-9403

LEE COUNTY

5237 Summerlin Commons Blvd., Suite 324 Fort Myers, FL 33907 Phone: 239/275-2230 (Jean Gruss); FAX: 239/936-1001 (Legal Notices)

ORANGE COUNTY

5550 26th St. West, Suite 7 Bradenton, FL

Founded in 1975

Director of Distribution and Subscription Sales & Marketing / Anne Shumate, subscriptions@review.net

MANATEE COUNTY

HILLSBOROUGH COUNTY

$BMM UPEBZ 941-753-3053

446 N. Dillard St., Suite 4 Winter Garden, FL 34787 Phone: 407-271-4855 (Legal Notices) Fax: 407-286-1802 93193

XXX LJUDIOFSBOEQJFSSP DPN

Chief Financial Officer / Laura Keisacker, lkeisacker@yourobserver.com

/6> ;6 9,(*/ <:

Please contact

t )3 $POTVMUBOUT

PO Box 2234 Sarasota, FL 34230 1970 Main St., Suite 400, Sarasota, FL 34236 Phone: 941/362-4848 Phone: 941/906-9386 (Legal Notices) Fax: 941/954-8530 The French Quarter, 501 Goodlette Road N., #D-100 Naples, FL 34102 PHONE: 239-263-0122 (Legal Notices) Fax: 239/263-0112

Address: 949 Tamiami Trail, Suite 202 Port Charlotte, FL 33953 Phone: 941/249-4900 (Legal Notices) Fax: 941/249-4901

PASCO COUNTY

3030 STARKEY BLVD NEW PORT RICHEY, FL 34655 Phone: 813/221-9505 (Legal Notices) Fax: 813/221-9403

14004 Roosevelt Blvd. Clearwater, FL 33762 Phone: 727/447-7784 (Legal Notices) Fax: 727/447-3944

OWN YOUR FUTURE

SARASOTA COUNTY

COLLIER COUNTY

CHARLOTTE COUNTY

PINELLAS COUNTY

Join Fantastic Sams

To send Legal Notices, email to: legal@review.net. Name the county of interest in the subject line and attach notice. Deadline for legal notices is noon Wednesday.

FantasticSamsFlorida.com 888-326-7267

For Display Advertising, Call (941) 362-4848. Deadline for display advertising space is noon Friday.

/6> ;6 :<):*90),

Fantastic Opportunity

Subscription Price

5

Simple business model, low investment requirement

One-Year Periodical Rate ................................................................... $75 One-Year First-Class Mail ................................................................ $107

5

Recession-resistant

5

Fixed fee royalty

Two-Year Periodical Rate ................................................................. $127 Two-Year First-Class Mail ................................................................ $180

5

Manager-run units

5

Single & multi-unit development

5

No prior industry experience needed

5

Company educators train stylists system wide

5

Listed on the SBA Registry

5

Solid franchisees for validation

5

A simple business model, no markets closed for development Added revenue from our private label professional salon products

Three-Year Periodical Rate............................................................... $185 Three-Year First-Class Mail ............................................................. $239 Single copy price: $3 Group rates for five or more corporate subscriptions are available. To subscribe online: www.review.net If you have a question about your subscription or wish to suspend your subscription temporarily, call Anne Shumate, (877) 231-8834 or contact her by e-mail: subscriptions@review.net

Ideal Franchisee 5

Marketing and customer service focus

5

Hands-on owner, but not owner operator

5

Accepts franchise and model process

76:;(3 05-694(;065 The Gulf Coast Business Review (ISSN#1539-9184) is published weekly on Fridays by the Gulf Coast Review Inc., 1970 Main St., Sarasota, FL, 34236; 412 E. Madison St., Tampa, FL 33602; 14004 Roosevelt Blvd., Clearwater, FL 33762; 3030 Starkey Blvd., New Port Richey, FL 34655; 5570 Gulf of Mexico Dr., Longboat Key, FL 34228; 949 Tamiami Trail, Suite 202, Port Charlotte, FL 33953; 5237 Summerlin Commons Blvd., Suite 324, Fort Myers, FL 33907; and The French Quarter, 501 Goodlette Road N., #D-100, Naples, FL 34102. Periodicals Postage Paid at Sarasota, FL, and at additional mailing offices. The Gulf Coast Business Review is circulated in Charlotte, Collier, Hillsborough, Lee, Manatee, Pasco, Pinellas, Polk and Sarasota counties. POSTMASTER: Please send changes of address to The Gulf Coast Business Review, P.O. Box 3169, Sarasota, FL 34230. For information on reprints, visit review.net

“The road is cleared,� said Galt. “We are going back to the world.� He raised his hand and over the desolate earth he traced in space the sign of the dollar. Ayn Rand, Atlas Shrugged 93732

Ideal Franchise

5

Advertising Graphic Designer / Shawna Polana

Research Editor / Sean Roth, sroth@review.net

$$

GULF COAST BUSINESS REVIEW NOVEMBER 2 – NOVEMBER 8, 2012

www.review.net

3

COFFEE TALK

CONTINUED FROM PAGE 1

Sarasota entrepreneur Jesse Biter likes to dream big, though the gazellelike growth with his latest venture even startled him a little bit. Biter, along with local auto dealership executive Matt Buchanan, founded Dealers United late last year. The company’s goal: to build a nationwide network Jesse Biter of auto dealers that would have combined buying power with vendors. The network, in turn, would provide dealerships access to exclusive deals, on everything from copy machines to search engine optimization consultants. Dealers United officially got going earlier this year, with three employees and

Clearwater insurance executive Paresh Patel, along with a dozen colleagues and relatives, hit the big time in the Big Apple last month. The chairman and CEO of Homeowners Choice Inc., Patel rang the closing bell at the New York Stock Exchange Oct. 25. The ceremony officially marked the firm’s stock switch from a listing on the Nasdaq to a listing on the Big Board, the NYSE. Patel, in an interview earlier this month with the Business Review, says the switch was an important milestone for the company, which had $94.84 million in 2011 revenues. “It’s where the big boys play in our industry,� says Patel. “It tells everyone we met the highest, most stringent financial criteria ... to us, it’s quite a wonderful statement.� The firm has 110,000 homeowner’s insurance policyholders. Founded in 2006, Homeowners Choice has about 220 employees in the Tampa region, including 100 or so who were added over the past year. A spokeswoman says the company expects to hire around 40 more people in 2013. Homeowners Choice trades under the symbol HCI. The stock closed at $22.81 a share Oct. 26, the last full day of trading before Hurricane Sandy forced a two-day Wall Street shutdown. $1 million in startup capital. Biter figured a victory would be if the company hit 2,500 dealers in the network in the first year. Dealers United hit that mark,

93930

+ Startup auto business quickly revs up payroll

+ INSURANCE FIRM RINGS OUT BIG DAY

FEATURED PROPERTIES

FOR LEASE

PARKLAND CENTER - Sarasota, FL

ECONOMIC SNAPSHOT

3,000 SF - 27,330 SF 7(3% /FlCE 2280 Trailmate Drive

GULF COAST RETAIL INDEX

$5.00 - $8.00 NNN

See COFFEE TALK on page 5

What the data show: The index of retail activity is AUGUST RETAIL INDEX designed to measure personal Annual consumption and it combines Area Index Change the taxable-sales categories of Sarasota-Bradenton 125.1 6.5% autos, consumer durables (such Cape Coral-Fort Myers 147.9 6.1% as appliances), tourism and Tampa-St. Petersburg 117.4 6.1% consumer non-durables (such Punta Gorda 123.7 5.8% as food and clothing). The Naples 128.8 5.3% index’s base equaled 100 in Source: Florida Legislature Office of Economic & Demographic Research 1988. For example, an index of 150 today would have taxable sales equal to 1.5 times the base period in 1988, or a 50% centage-change basis, all areas of the Gulf increase. The latest data is for August. Coast trailed the state as a whole (up 6.9%). Across the state, Lakeland posted What it means: Every area of the Gulf the biggest jump in the index (up 10.2%), Coast saw gains in the retail index in followed by Jacksonville (up 7.8%). August as consumers grew more confident this summer compared with 2011. Much Forecast: The University of Florida’s of the index growth in August was due to most recent consumer-confidence survey especially strong auto continues to show that state residents are sales. However, on relatively optimistic. However, surveys of an annual consumer confidence sometimes don’t permatch spending patterns, and unforeseen events could impact confidence. Although the elections will lift political uncertainty, the economy remains a major concern especially with looming tax issues.

.EWER BUILDING CLEAR Office or warehouse. ,OADING DOCK

3& s -ANUFACTURING 0ARKLAND $RIVE

!IR CONDITIONED WITH !MPS ELECTRIC Bright, clean manufacturing! 15% office. $4.50 NNN

2520-34 Trailmate Drive

3UITE 3& ... /FlCE WORKSHOP Suite 103 1,293 SF $7.00 NNN Office + small whse Suite 108 1,200 SF $7.00 NNN Office + whse

MANASOTA INDUSTRIAL PARK – Bradenton, FL 3& s 7(3% /FlCE TH 3T #OURT %AST

.EW 'REAT 4ILT 7ALL SHELL BUILDING 24-27 clear height. Will finish to suit. $5.00 NNN

Price includes 10% office buildout

For information, call Beverly Vorhees at (941) 756-5599 %MAIL BVORHEES HIGH NET s PARKLANDCENTER COM

86780

upgrading the property’s exterior and interior. Painters have slathered the restaurant walls with the wrestler’s trademark yellow, in this case, a distinct mustard shade, with red trim. When the transaction is complete, according to contractors and hotel sources, the restaurant is expected to be renamed the Kingfish Grill and Tap House, which has other locations in the Tampa Bay area. But is the wrestling champ really on the verge of putting his stamp on the eatery, with planned entertainment involving wrestling? Happy Nook, general manager of the Bay Harbor Hotel, has seen concepts come and go, and he isn’t so sure. “Where is the contract?� he asks. “Yes, there is a Hulk Hogan beach shop in Clearwater — it just opened this past Saturday. But where is the signed agreement for this restaurant? I haven’t seen it,� Nook says. As for the yellow walls and upgraded finishes at Crabby Bill’s, those are just elements of a long-planned makeover, he says. “We changed to different concepts of color.� Rumors have been swirling about the wrestler’s potential investment, Nook admits. But so far, nothing is concrete. “If and when Hulk Hogan signs a contract, you’ll be the first to know.�

4

GULF COAST BUSINESS REVIEW NOVEMBER 2 – NOVEMBER 8, 2012

www.review.net

GULF COAST WEEK REGIONAL BUSINESS NEWS AT A GLANCE

TAMPA BAY

assistant secretary. The firm’s current president, Bill Sanders, will remain with the company as vice chairman until his retirement in June.

Kforce names new president Kforce Inc., the Tampabased staffing firm, has named Joseph J. Liberatore as its new president, effective January. Liberatore is the company’s chief financial officer and executive vice president. He has been with the firm since 1988. Kforce named David M. Kelly as its new chief financial officer, also effective in January. He currently serves as senior vice president of finance and accounting, and as corporate

DonCesar names marketer

The Loews Don CeSar Hotel has named Jim Caul as its director of sales and marketing. Caul will oversee sales, marketing, revenue management, spa, public relations and reservations. Caul will also oversee the overall strategy for the 277room St. Pete Beach hotel, which was recently renovated. Caul was previously with the Loews Lake Las Vegas Resort in Henderson, Nev., where he served as director of sales and marketing.

EXECUTIVE

DECISION Who did you vote for in the presidential election?

SARASOTA-MANATEE City seeks coordinator

To vote in this week’s poll, visit: review.net/decision

The city of Sarasota received 66 applications for its vacant economic development coordinator position. The new coordinator, paid for by the city, the Greater Sarasota Chamber of Commerce and the Sarasota Downtown Improvement District, will replace Randy Welker, who left in June. Welker held the position for a little more than a year.

Results from last week’s poll:

How secure do you think your business is against cyber attacks? 0% Locked down Taken some precautions

33% 67%

Banker to retire, again

Not where we need to be

Longtime prominent local banker Tramm Hudson recently announced he will retire Nov. 15.

0% What’s a cyber attack?

Hudson, who will turn 60 Nov. 11, is currently Florida president for St. Cloud, Minn.-based Stearns Bank. Hudson will stay with the bank, which entered the Gulf Coast market in 2009, as a goodwill ambassador. Hudson worked in local banking for 30 years. A native of Montgomery, Ala., he co-founded Enterprise National Bank, which later became part of Provident Bank and after that, RBC Centura. Hudson retired from RBC in 2006 to run for U.S. Congress, in an unsuccessful campaign in the Republican primary against Vern Buchanan.

Fraudsters sentenced

A federal judge sentenced several defendants in a widespread mortgage fraud case that involved millions of dollars in Sarasota properties. In total, federal authorities charged 19 people with various roles in the flipping case, where conspirators allegedly made $200 million in false mortgages connected to at least 150 homes. Former Sarasota Realtor Rich Bobka, considered one of the leading conspirators, was sentenced Oct. 29 to serve 15 years in prison. Bobka pleaded guilty in February.

CHARLOTTE-LEE-COLLIER Beasley net income falls Radio station operator Beasley Broadcast Group reported

Brew pub expands to region Portland, Maine-based Shipyard Brewing Co. plans to open a Sea Dog Brew Pub in Clearwater. The Clearwater Sea Dog Brew Pub, scheduled to open near the Countryside Mall in mid-November, will be the first in a statewide expansion through 2017. The restaurant will hire up to 120 employees, the company says, and will have a menu that mixes local

seafood with Northeastern staples, like Maine lobster and New England clam chowder. Most of the beer will be brewed onsite, though some will be shipped from Maine. The company says the Clearwater market is one of the brand’s strongest regions, which facilitated the expansion. The pub will go into the former Pssghetti’s, a 10,400-square-foot building.

net income fell 51% to $1.2 million on revenues of $24.7 million in the third quarter compared with a year ago. The company says a $2.6 million pretax charge for loss on the extinguishment of longterm debt resulted in the drop in profits in the third quarter. However, Beasley reported operating income rose 15.2% to $6.5 million in the third quarter compared with one year ago. The operating-income gain was the result of a combination of lower expenses and net revenue that rose 3.1% to $24.7 million.

Alorica expands

Alorica plans to add 100 people to its Fort Myers call center, according to economic development officials with the Fort Myers Regional Partnership. Alorica currently employs nearly 600 people in a

38,000-square-foot center near Interstate 75 and Daniels Parkway. Alorica, which expanded to Fort Myers in 2006, says it plans to hire another 100 people within the next two months.

Hotel revenues flatten

Revenues at hotels in Lee County were flat in August compared with the same month a year ago. Revenue per available room was $54.23, 0.1% higher in August than the same month one year ago, according to the Lee County Visitor and Convention Bureau. In August, occupancies fell 0.6% to 48.8% and the average daily rate rose 0.8% to $111.20 compared with August 2011. Hurricane Isaac skirted the Gulf Coast in August, which likely caused some hotel cancellations.

FAST & FLEXIBLE BUSINESS LOANS

In-house approvals & processing ! Nationwide Preferred SBA Lender ! Terms up to 25 years Hotel Franchise $3.5 Million Orange City

Collection Company $415,000 Sarasota

Homebuilder Construction LOC $10 Million Lakewood Ranch

Veterinary Clinic $571,000 Venice

Restaurant Construction $4.1 Million Sarasota

Call us to get the job done!

Trammn Hudso

90685

l Michae e r o Mo

92856

941-929-9000

The secret of getting more publicity

Advertisement

By Ronald T. Smith* ZKDW WR VXJJHVW DQG ZKDW QRW WR SURSRVH ´ ,Q D VKRUW ZKLOH WKLV KDV KDSSHQHG 7KH )RXQGDWLRQ ZDV WKH VXEMHFW RI WZR SUHVV UHOHDVHV WKDW ZHUH WRWDOO\ MRXUQDOLVWLF 7KH DJHQF\ VHQW WKH UHOHDVHV WR PRUH WKDQ HGLWRU FRQWDFWV 7KUHH VHSDUDWH IHDWXUH DUWLFOHV ZHUH DUUDQJHG 7ZR ZLOO EH ZULWWHQ E\ WKH DJHQF\ 2QH ZLOO EH VWDII ZULWWHQ E\ WKH SXEOLFDWLRQ

7KH DJHQF\ UHWDLQHG D QRWHG SKRWRJUDSKHU WR SURYLGH TXDOLW\ SKRWRJUDSKV WR DFFRPSDQ\ WKHVH DFWLYLWLHV +H LV D \HDU YHWHUDQ IURP WKH ELJJHVW GDLO\ QHZVSDSHU LQ KLV KRPH FLW\ DQG D KLJKO\ LQYHQWLYH DUWLVW ZKR FRQVWDQWO\ FRPHV XS ZLWK TXDOLW\ DQG LPDJLQDWLYH SKRWRV 36 DQG KH XQGHUVWDQGV WKDW SXEOLFDWLRQ UHTXLUHV D ORW RI SL[HOV LQ WKH SKRWRV ,W VDYHV PXFK HPEDUUDVVPHQW WR KDYH D MRXUQDOLVW D SURIHVVLRQDO ZULWHU DW \RXU HOERZ DQG WKH DJHQF\

ZLOO TXRWH DQ\ WDVN RQ DQ KRXUO\ EDVLV 0RVW RI WKH DJHQF\œV SHRSOH KDYH EHHQ ZULWLQJ IRU \HDUV $VLGH IURP SXEOLFLW\ \RX FDQ XVH WKHP IRU ‡ ZULWLQJ DGV ‡ ZULWLQJ RU UHZULWLQJ \RXU ZHE VLWH ‡ EORJV ‡ WZHHWV DQG IRU ZULWLQJ RU HGLWLQJ OLWHUDWXUH )RU PRUH LQIRUPDWLRQ \RX FDQ FRQWDFW -RXUQDOLVW35 //& DW RU PDLO#MRXUQDOLVWSU FRP

0DQDJLQJ 0HPEHU RI -RXUQDOLVW35 D IRUPHU HGLWRU DW 8QLWHG 3UHVV ,QWHUQDWLRQDO LQ 1HZ <RUN DIWHU \HDUV RI ZRUNLQJ DW PDMRU GDLOLHV LQ WKH 8 6

94232

5HFHQWO\ 6DUDVRWDœV 3DUNLQVRQœV 5HVHDUFK )RXQGDWLRQ DSSRLQWHG DQ XQXVXDO DJHQF\ FDOOHG -RXUQDOLVW35 //& WR JHW SXEOLFLW\ DERXW WKH )RXQGDWLRQœV DFWLYLWLHV 7KH DJHQF\ LV YHU\ GLIIHUHQW ² LW LV VWDIIHG WRWDOO\ E\ MRXUQDOLVWV 6R ZKHQ LW VHWV RXW WR JHW SXEOLFLW\ LW KDV MRXUQDOLVWV WDONLQJ WR MRXUQDOLVWV $V WKH DJHQF\ VD\V ³:KHQ ZH FDOO DQ HGLWRU ZHœUH WDONLQJ WKH VDPH ODQJXDJH EHFDXVH ZH ZHUH HGLWRUV DQG UHSRUWHUV RXUVHOYHV :H NQRZ

GULF COAST BUSINESS REVIEW NOVEMBER 2 – NOVEMBER 8, 2012

www.review.net

5

COFFEE TALK

CONTINUED FROM PAGE 3

Instinctive and responsive. Professional and executive banking.

Introducing Emerald Professional and Executive Banking from C1 Bank.

Entrepreneurs battle it out

+ IberiaBank’s $3 million conversion The bank-sign business must be good. IberiaBank, the Louisiana-based bank that acquired Fort Myers-based Florida Gulf Bank earlier this year, says it spent $3 million converting the 10 branches in Fort Myers and Cape Coral. The most visible part of the conversion was new IberiaBank signs. Details of the conversion costs were contained in IberiaBank’s quarterly earnings announcement. In addition to Florida Gulf ’s $286 million in deposits and $57 in securities, IberiaBank acquired $216 million in loans. Of those loans, $145 million were commercial, $28 million were consumer and $43 million were mortgages. For the quarter ended Sept. 30, IberiaBank reported net income rose 30% to

Contact us for a consultation today. C1Bank.com/Emerald Â’ (877) 266-2265

Zephyrhills

Hillsborough County

Pinellas County Belleair Largo

Downtown

Hyde Park MacDill Westshore

Mid-County

Davis Island

4th Street Beach Drive

West Central

Riverview Apollo Beach

Manatee County West Bradenton

Lakewood Ranch

Braden River

Gulf of Mexico

Charlotte County Port Charlotte

21 locations across Tampa Bay

Veterans

Punta Gorda

$21.2 million compared with the same month one year ago. Net interest income rose 9.3% to $96.7 million.

+ Once fast-growing homebuilder now struggling A once highflying homebuilding firm, Sarasota-based Paradise Homes, has been grounded in financial difficulties over the last month, troubles that culminated in a bankruptcy filing. The company, founded by Jim Butler, filed for Chapter 7 bankruptcy in federal court in Tampa Oct. 25. That bankruptcy section indicates the company might seek liquidation of all assets, while Chapter 11 is usually a reorganization. Paradise Homes and the related entities named in Butler the bankruptcy filings listed assets and liabilities of between $1 million and $10 million, court records show. Butler, the subject of a September 2011 Business Review feature story that focused on the firm’s strategy and fast growth, didn’t return calls for comment. A sales and marketing employee says she and several others were laid off in midOctober. The impact of the firm’s troubles stretch across the Gulf Coast. While the bulk of Paradise’s work was in east Manatee County, where at least 20 homes are incomplete, the firm also had several custom-build clients in Sarasota. Plus, in June, Palm Beach Gardens-based Kitson & Partners named Paradise the first builder to construct homes in Talis Park in Naples, a new country club community. The difficulties, moreover, defy the good times Butler spoke about in late summer 2011. Back then he said he had just invested more than $1 million in a new showroom, part of a campaign to grab market share while other homebuilders waited out the recession. “Most people, family members and friends, said I was crazy for spending all this money,� Butler told the Review last year. “But I believed in what I’m doing. We had to reinvent ourselves.�

85540

and has since surpassed 4,000 dealers. One of those dealerships is Sarasota Ford, where Buchanan, son of U.S. Rep. Vern Buchanan, R-Longboat Key, is the operations manager. The payroll at Dealers United, meanwhile, has grown more than six-fold, to 19 employees, with several more projected hires over the next few months. The employees work with the network of auto dealers in customer support. “Within the past year we’ve seen a total change in the industry,� says Christian Ziegler, the firm’s chief operating officer, hired in October 2011. “For the first time ever, there is a company that stands by the dealers.� The Dealers United system runs similar to Groupon. The firm finds a service common to many dealers, then it solicits vendors for a deal. Network members decide if they want to buy into the deal, and if enough members sign on, the deal tips and is open to all members. There are no fees for dealers to join the network. Dealers United makes money off a percentage of the business it brings to vendors. Dealers United recently moved into new space, in the Hub building in downtown Sarasota. Biter, who sold a $16 million auto sales software business in 2010, bought the building last year. Biter says Dealers United has much more potential for super growth than his previous business. “My bucket list is to take a company public,� Biter tells Coffee Talk. “This could definitely be that company.�

the door. •Accessory Addict: A subscriptionbased accessories service for women. •Pronector: Connecting with people at conferences and events by searching for attendees with keywords you’re looking for. • Rectangle: NFC (near-field communications) enabled business cards, which automatically sync with Android phones. •BAUSS Management: a single portal for all communication to flow through for condominium and homeowners associations.

Emerald Professional and Executive Banking includes: Tailored lending solutions for executives and their practices or firms ¡ Innovative cash management and electronic banking ¡ Personalized Emerald checks in a leather bound checkbook ¡ Unlimited check writing ¡ Overdraft protection with a No-Fee Executive Line of Credit

Dade City

Pasco County

MEMBER FDIC

THE FLAGPOLE BEACON THE PROPER WAY TO LIGHT YOUR FLAG! U.S. PATENT #7,275,495

s &,!'0/,%3 s &,!'3 s ,)'(4).'

3OLAR NOW !VAILABLE h%NERGY 3AVING ,%$Sv WWW mAGPOLEWAREHOUSE COM

85458

This is the business version of cage fighting, minus the blood. Twenty-five young technology entrepreneurs recently fought it out in Startup Battle, in which contestants build teams and have 48 hours to launch a new startup business. Held at the newly opened Venture X co-working space in Naples recently, these entrepreneurs came up with some terrific ideas. Consider: •Chimed: A smartphone-enabled doorbell that alerts you when someone’s at

Designed to fit the distinctive needs of physicians, attorneys, and working professionals, Emerald Professional and Executive Banking from C1 Bank combines traditional banking services you expect with executive courtesies you deserve.

6

GULF COAST BUSINESS REVIEW NOVEMBER 2 – NOVEMBER 8, 2012

www.review.net

PRICE SPIKE The median prices of existing singlefamily homes in Collier and Lee counties have been rising at a 20% to 30% annual clip in recent months. Can they keep rising at this pace?

P

rices for existing single-family homes in Collier and Lee counties have surged in recent months by 20% to 30% compared with the same months last year. These price increases are steeper than in other areas of the Gulf Coast, suggesting that residential real estate in Collier and Lee counties may be recovering faster. There’s no single reason for the big jumps, but experts point to fewer foreclosures, shrinking inventory, low interest rates, increased demand and investor interest. Still, there are forces that may keep prices from spiking further. Nobody’s flipping homes like they used to during the boom, and the price increases are coming off the bottom of a home-price collapse. There’s an unknown number of sellers and banks waiting to put “for sale” signs up once prices firm and homebuilders have dusted off plans for thousands of new homes in the area. In September, the median price in Collier was $232,000, and in Lee it was $124,000. Those prices were up 25% in both counties compared with the same month in 2011, continuing a trend of similar annual median price increases throughout this year. Of course, the median price of a singlefamily home has a long way to go before it hits the boom highs. In Collier, the median price of an existing single-family home hit the peak at $511,400 in January 2006 and in Lee, the median price hit the peak at $322,300 in December 2005. But many Realtors say there are no reasons why prices can’t continue to rise in the foreseeable future because supply is shrinking and demand is rising. “Back in March 2007, we had 12,440 properties on the market,” says Mike Hughes, vice president with Downing Frye Realty in Naples. “Now we’re down to 6,195. That’s a 50% reduction and 1,000 of them are probably under con-

Nancy DeNike

Brenda Fioretti, the managing broker of Prudential Florida Realty in Naples, says price increases will bring out sellers who have been waiting to list their homes. tract, so our inventory is getting low.” In Lee County, there’s just a threeand-a-half-month supply of single-family homes for sale based on current sales pace, says Marion Briggs, owner of Sun Country Homes and Sun Country Realty of Florida in North Fort Myers. “Three and a half months is really nothing; that drives the price up,” says Briggs, who is also president of the Realtor Association of Greater Fort Myers and the Beach. Jeff Tumbarello, a sales associate with Steelbridge Realty who follows the foreclosure market closely, says there’s just a 1.7-month supply of homes for sale at less than $100,000 in Lee County. “Now what’s coming out is owner-occupied, nicer homes,” he says, noting that 77% of sales are traditional transactions. Tumbarello, who is also executive director of the Southwest Florida Real

Estate Investor’s Association, says he doesn’t believe there’s another big wave of foreclosures and banks don’t have a giant “shadow inventory” of homes to sell. “The shadow inventory has become Big Foot,” he jokes. Besides homebuyers who plan to live in the homes, the market also has attracted investors chasing higher yields with rentals. In addition, foreigners such as Europeans and Canadians armed with stronger currencies have been buying Florida property. “When you talk to these people, it’s almost as if Florida is its own country,” says Briggs. “They say they’re looking at Spain and Florida.” “We’re pretty close to a balanced market,” says Phil Wood, president of John R. Wood Realtors in Naples. Still, Wood says new-home construction and residents who have been wait-

ing for better prices to sell their homes may temper the price increases. “You’ll see quite a few developer sales this season because buyers will want something new,” he says. Brenda Fioretti, the managing broker at Prudential Florida Realty in Naples, says price increases will bring out sellers. “I think there are a lot of people who have held off because they couldn’t afford to list their home,” she says, though she acknowledges it’s hard to judge how many. “It’s going to bring out some of the people who are waiting to sell.” The residential real estate market could surge after the elections if issues such as taxes and deductions for mortgage interest are resolved. “It could unleash a lot of activity,” says Hughes. —Jean Gruss

GULF COAST BUSINESS REVIEW NOVEMBER 2 – NOVEMBER 8, 2012

www.review.net

Freeze Frame

7

Three friends and hospital colleagues sought an entrepreneurial challenge. They found it in ice cream.

A

trio of local nurse anesthetists has injected a serious dose of entrepreneurialism into their lives. That, and a hefty portion of ice cream. The unusual combination lies in the Sarasota franchise unit of Sub Zero Ice Cream & Yogurt — the first location to open east of the Rockies. The American Fork, Utah-based chain, ranked 365th in Entrepreneur magazine’s 2012 Franchise 500, makes ice cream for customers in a flash-freeze process. It’s cryogenic ice cream that can be customized through liquid nitrogen, from flavors and mix-ins down to the type of milk or custard. Founded in 2004, the chain has 20 locations spread through Arizona, Idaho, Utah and Washington. And the company’s initial eastbound location starts with a unique business partnership: The owners, Brad Lord, Gabe Ramsey and Don Wirth, are all nurses in the anesthesiology department at Manatee Memorial Hospital. Each of the own-

ers’ wives, moreover, are labor and delivery nurses, though two stopped working full time a few years ago. The new business owners invested about $200,000, from savings and credit cards, into launching the new Sub Zero. The store, in a strip mall on Clark Road, a few miles west of Intestate 75, opened in late October. “The three of us all work in a very stressful profession, and we wanted to add a little fun in our lives,” says Wirth. “We looked at different businesses to own and decided this would be a bit less stressful.” Adds Wirth: “It’s OK if you mess up an ice cream cone, but not so with anesthesia.” All three partners decided on a franchise, says Wirth, because they sought a business with the systems already in place. They found Sub Zero on an Internet search and all three traveled to Utah last year for a franchise Discovery Day. The business model

Taking Flight A Longboat Key couple with decades of airline experience believes an SRQ-based airline would be feasible and profitable.

In June, Sarasota-Bradenton International (SRQ) Airport President Fred Piccolo announced a new marketing campaign called “Do You SRQ?” urging residents and businesses to take a pledge to use their local airport. Longboat Key residents Steve and Hannah Miller are taking that pledge to another level. The Millers, who have more than 60 years combined in the aviation business, are in the concept stage of creating an SRQ-based airline called Sunrise Airlines of Sarasota. The move, they say, would jumpstart the local economy and get residents using the local airport with direct flights at competitive fares. The Millers moved in February to Sarasota from Hong Kong

and then moved to Longboat Key permanently in June. “Steve couldn’t stay retired for more than two months,” Hannah Miller says. The couple, who moved to the United States upon retirement to be closer to family, chose Sarasota over Boca Raton after friends and family urged them to check out the Gulf Coast. The only problem was the Millers arrived through Tampa International Airport and had no idea the Sarasota-Bradenton International Airport existed until they lived here. Steve Miller — who started a Hong Kong-based airline called Dragonair in the mid1980s, now owns 31 jets flying to 25 destinations within Asia. He also formed another airline there in 2004, called Oasis, that ceased operations in 2008. He says thoughts of a Sarasota-based airline immediately popped into his head when he visited the airport. “Even when traveling at the Tampa airport, it’s almost impossible to get a direct flight,” Steve Miller says. “My aviation instincts were aroused imme-

Lori Sax

Don Wirth, left, joined two colleagues at Manatee Memorial Hospital, including Brad Lord, right, to open a Sub Zero Ice Cream & Yogurt. was simple, says Wirth, and the science side of the ice cream process clicked, given their medical and chemistry backgrounds. Says Wirth: “It is totally cool to walk in and see billowing fog rolling off the counter as designer ice cream is being made.” The $200,000 it cost to open the store included a $25,000 franchise fee. Wirth says the partners decided to lease some of the expensive equipment, like the liquid nitrogen tank. That would cost about $15,000 to buy, says Wirth, but the partners lease it for $300 a month.

diately, and a local airline with direct flights and competitive fares would work here.” Steve Miller, 73, says Sarasota residents and visitors “have endured inferior air connections for too long.” “I can smell out where there’s an opportunity and put it into practice,” Steve Miller says. “I have found out there really is a need for a local airline here.” Miller proposes that an airline utilizing Boeing 737-400 planes, with a home base at SRQ that offers 24 non-stop destinations in the U.S. and Canada, will work and could be up and running within 12 months. In the first year of operation, the airline could handle eight non-stop flights with four aircraft; it would add eight additional flights and four more aircraft in the second year; and add eight more flights and three more aircraft in its third year of operation. All of these flights, Steve Miller says, would have fares that are competitive with Tampa International Airport. Plans for international flights and Florida flights would follow. “The airport has been in extensive discussions with an individual over the last six to eight months about their plan for a Sarasota-based carrier,” Piccolo wrote in an Oct. 17 email to Longboat Key Vice Mayor David Brenner. “He has extensive airline knowledge, and we are assisting wherever we can.” The Millers have begun to make presentations about the airline in the area.

Jerry Hancock, an entrepreneur with a chemistry background from Brigham Young University, created the Sub Zero concept and founded the franchise company. Hancock and his wife, Naomi Hancock, ran a burrito restaurant in Utah that allowed customers to create their own meals. They expanded to customized dessert, which is when Hancock developed the process of using liquid nitrogen to freeze ice cream. Wirth says one aspect of the franchise opportunity he and his partners especially like is the

idea that Sub Zero is portable. The tank and equipment can be packed up and used for events, parties and catering. Wirth says he and the partners are also already talking to some area malls about opening a Sub Zero kiosk. “We are looking at growing,” says Wirth. “Expansion is definitely in our future.” Still, no one is ready to dive fully into ice cream entrepreneurialism. “We live a nice life as anesthetists,” Wirth says. “We don’t want to give that up yet.” — Mark Gordon

Kurt Schultheis

Longboat Key residents Steve and Hannah Miller believe their new airline could fly to eight destinations out of Sarasota in its first year.

A Sarasota-Bradenton International Airport study shows it could handle 3.75 million passengers per year and traffic has fallen because of passenger leakage to Tampa and Fort Myers. “Passenger numbers should be three times what it was in 2011, and a local airline would help tremendously,” Steve Miller says. Sunrise Airlines, Steve Miller says, is evaluating high-volume destinations and destinations that AirTran utilized before it left the airport earlier this year. “We believe this sort of market would prefer one competitive price on an airline dedicated to this market and one that could

PHASE ONE DESTINATIONS • • • •

Philadelphia Indianapolis Baltimore Detroit

• • • •

Boston Pittsburgh Chicago Newark, N.J.

create local jobs for this market,” says Steve Miller, who explained such an airline could create 400 local jobs that would be a combination of flying, ground operations and office staff. “My experience has always been in startup airlines,” Steve Miller says. “I want to do my part to stimulate jobs in this economy.” — Kurt Schultheis, contributing writer

8

GULF COAST BUSINESS REVIEW NOVEMBER 2 – NOVEMBER 8, 2012

www.review.net

MADE IN FLORIDA The experience of a small manufacturing company in Fort Myers proves that manufacturing can thrive in Southwest Florida.

W

hen Peter Bagwell and two business partners decided to move to Fort Myers from Michigan to start a manufacturing company in 2010, they weren’t sure what to expect. “It was a leap of faith,” says Bagwell. But their experience successfully launching a manufacturing company called Polygon Solutions two years ago shows that it is possible for real estate and tourism-dependent economies like Fort Myers’ to become more diversified. Bagwell and his two partners, Jim Cox and Steve Derbin, didn’t choose Fort Myers for business reasons. They wanted to live here for the weather and the water activities like boating. Bagwell sold his home in Michigan for what he owed. “I sold it in two days,” he says. “I had bought it as a foreclosure.” Polygon is a niche manufacturer. It

JimJett.com

Peter Bagwell and two partners started Polygon Solutions, a manufacturing company in Fort Myers, in 2010. makes special tools for other manufacturers who need to drill holes in screws so liquid or gas can pass through. These special screws are used for medical, aeronautic and automotive industries. Bagwell declines to share financial results, but says the company doubled its firstyear sales. Its products cost from $50 to $700. Many Floridians don’t quite understand the process until Bagwell explains. “I have to teach a little class every time I meet somebody,” he chuckles. That includes bankers, too. Bagwell says most bankers in the Fort Myers area don’t understand manufacturing and are reluctant to finance startups in that industry, he says. Except for the equipment, Bagwell says the partners financed the company with their own savings. Florida is unlike Michigan, which has a

Lori Sax

Lisa Fowler, director of communications, Cynthia Taylor, vice president of administration, and Susanne Arbanas, director of contagious enthusiasm with Grand Incentives. The company recently started a concierge service to add value to its travel memberships.

Grand Expansion Travel services haven’t died with the Internet, they’ve just changed to match the times.

W

ith the advent of travel booking websites and Internet deals, the landscape of the travel industry has changed, but it’s not dead. In fact, one such business, which has built a new 9,200-square-foot state-of-the-

art call center across the street from its 14,000-square-foot corporate headquarters north of Sarasota Bradenton International airport, is in expansion mode. The two facilities — which reside in Manatee County but operate with a Sara-

vast network of manufacturers that supply the auto industry. “When we first got here it was definitely a shock,” says Bagwell, who has spent his career up north. “Here you really have to search out suppliers.” But manufacturing pioneers in the region such as Arthrex and Structure Medical paved the way for establishing a budding network of related industries. “Some of them are our customers,” says Bagwell. “The fact that they were already here was a big bonus for us.” The marine industry also has been established in Southwest Florida for some time. “I couldn’t believe how many machine shops there are here,” Bagwell says. “There’s a lot of marine.” Bagwell and his partners timed their move well because they were able to find reasonably priced industrial space near

Southwest Florida International Airport. That’s important because Polygon’s customers are global and delivery services can pick up late in the day. “When we came, the leftovers from the construction boom were pretty good for us,” Bagwell says, noting that they had agreed on a lease within a week of their arrival. Fact is, Polygon can locate in places such as Fort Myers because of the Internet. Polygon has a well polished website and it advertises in trade publications such as Today’s Medical Developments, a medical device journal. “Orthopedics is huge,” he says. While Bagwell says he’s not aware of competition from Asia, he says Polygon’s edge is innovation. “We’re inventing new stuff and we think it’s going to work,” he says. “It’s fun.” —Jean Gruss

sota postal address — house three related companies. The parent company, Grand Incentives, offers travel incentive programs to corporations designed to enhance customer and employee relationships. The Coast to Coast Grand Getaways division is a membership-based travel club. And most recently, the firm launched Grand Excursion to provide concierge travel services at no extra charge to Coast to Coast Grand Getaways members. Grand Excursions received $150,000 in financial incentives from Manatee County to support its growth, including $81,890 to be used toward new employee training, $60,000 in incentive-based grants, and $7,797 in impact-fee waivers, according to a statement from the Manatee Chamber of Commerce. To accomplish this, travel industry expert and founder of Anna Maria Island Concierge Services Susanne Arbanas was hired as director of contagious enthusiasm. “Our philosophy is to work hard and to have a lot of fun at the same time,” says Arbanas. Arbanas explains that Coast to Coast was formed in 2006 when CEO Jose L. Martinez purchased and combined a number of “loyalty” travel databases into one company. It provides discounts on more than 5,500 resorts in 105 countries, vacation packages and more to its 40,000 national and international members. Although the company declined to release revenues it says its parent, Grand Incentives Inc., is “a multimillion-dollar company that has achieved double-digit growth for the past three years.” Grand Excursions has already brought

jobs into the area. Arbanas confirms that 60 positions were created and about 35 have been filled to date. “We are aggressively hiring right now — mostly for sales positions in the call center,” she says. A major victory for Arbanas was how fast she and her team were able to ramp up Orlando as Grand Excursions’ first concierge-serviced location. “Normally it takes 12 to 18 months to get in with Disneyworld. Because of our team’s connections and contacts we were able to roll that out in three months,” she says. As soon as Coast to Coast travel club members book a trip to Orlando, they will get a call from a Grand Excursions concierge team member who, at no extra cost, will help plan and book their vacation from start to finish. And Orlando is just the beginning, says Arbanas. “Grand Excursions will ultimately create 50 additional positions as we expand. Our next area to market will most likely be Las Vegas, though we are listening to members as far as destinations they would like. We do envision adding major cities such as New York, Washington, D.C., London, Paris, Rome, etc., over time,” she says. Meanwhile, Grand Excursions and its sister companies have been focusing on efficiency. This includes streamlining the call center’s phone system, looking at internal operational systems and procedures and evaluating technology and software platforms, Arbanas explains. “Our business goals for 2013 are to continue to expand our growth in emerging international markets,” Arbanas says. Of the Coast to Coast membership, about one-third is international, mostly from Latin America, she explains. “We will also diversify revenue streams by creating and branding affinity relationships within the travel industry and continuing to provide world-class customer service.” — Emily Leinfuss, contributing writer

GULF COAST BUSINESS REVIEW NOVEMBER 2 – NOVEMBER 8, 2012

CORNER OFFICE

www.review.net

9

by Mark Gordon | Deputy Managing Editor

10

5 1

4

2 6 3

7 9 8

Photos by Lori Sax

Work of Art

The office behind a successful independent florist is all about family, fun and feeling relaxed.

A

rt Conforti, owner of one of the largest florists in the Sarasota-Manatee area, isn’t afraid to spread the love. Not just in flowers, but in business advice. In fact, Conforti travels across the country consulting for other independent florists. A onetime bus driver for Sarasota County, Conforti is in a good spot to dispense advice: Teleflora, an industry trade group, consistently ranks his company, Beneva Flowers, in the top 20 nationwide for sales among independent florists. Conforti says he’s a hands-on boss, but he also lets his employees make decisions. “My day,” he says, “revolves around checks and balances.” Here’s a peek into Conforti’s daily workspace:

1 SCREEN MAN: A set of two TV screens

hangs on the wall behind the computers on his desk. The screens are to view nearly a dozen security angles in real time across the three connected buildings that make up Beneva Flowers. “This is mission con-

trol,” Conforti says. “I can see everything from here.” Conforti says he takes security seriously, but he’s not obsessed. “It’s not that I sit here and stare all day long,” he says.

2 IT’S AWESOME: Conforti is close

friends with basketball announcer and local philanthropist Dick Vitale — a fellow New York area native with Italian heritage. The friends and their spouses have traveled to many sporting events over the years, going back to days when Vitale wasn’t so well known.

3 WORLD’S WINDOW: A small window, with blinds, opposite Conforti’s desk has a view to the floral arrangement table in the shop’s main design room. That’s where Conforti can see, from his chair, what’s going on and how busy — or not busy — the company is.

4 TIME CHECK: Conforti is known for tar-

diness. “I work around the clock,” he says.

“I’m always on go-time. I’m always going somewhere.” He’s just not getting there on time. A friend bought Conforti an “Art clock” several years ago, where the numbers are out of order.The 2 is where the 12 should be, for example, while the 3 is at 6.

5 FAMILY FLORIST: Conforti’s mother, Nejla Iz, was an opera singer in the 1940s in New York City. An 8-by-10 picture of her hangs in the office, on a shelf above the refrigerator.

6 SPORTS CITY: Conforti is a fan of New

York sports teams, especially the Yankees and Giants, but his walls of fame hold no biases. Framed pictures include Michael Jordan, Tim Tebow and former Chicago White Sox and Pittsburgh Pirates manager Gene Lamont.

7 CHANGE AGENT: One of Conforti’s fa-

vorite sayings is “A bend in the road is not the end of the road ... unless you fail to make the turn.” He keeps a framed pic-

ture of a road, with the saying, to the left of his computer screen, where he can see it constantly. “Change isn’t always about growing,” says Conforti. “It’s also about getting better.”

8 SMOOTH SURFACE: Conforti’s workspace is two slabs of a marble table. It was a gift from a friend.

9 WINE AND DINE: A dorm-room sized

refrigerator sits to the right of Conforti’s desk, next to the closet that stores servers and technical gear. He regularly keeps bottled water in the refrigerator, and sometimes salads.

10 SUMMER WIND: Music plays through

ceiling speakers in Conforti’s office all day long. The song list is a rotation of smooth jazz, light hits and Frank Sinatra. Anything that sets a happy and relaxed mood. “Music is very important to me,” Conforti says. “When I walk through the door I want it to be on.”

10

GULF COAST BUSINESS REVIEW NOVEMBER 2 – NOVEMBER 8, 2012

www.review.net

ENTREPRENEURS

by Mark Gordon | Deputy Managing Editor

REVIEW SUMMARY Business. Beef ‘O’ Brady’s, Englewood, Tampa, Sarasota Issue. Hospitality, restaurants Key. One of the chain’s more successful developers projects significant growth.

Mark Wemple

Jimmy Mayberrie and Cliff Longshore co-own five Beef ‘O’ Brady’s locations in Florida. The business partners, with Tampa-based Bayshore Co., specialize in turning around underperforming Beef’s.

Brady’s Bunch A restaurant company with a penchant for successful sports bar turnaround projects harnesses a highly competitive spirit. “We have a whatever-it-takes attitude,” says one executive.

“

Cliff Longshore, Beef ‘O’ Brady’s, Englewood, Tampa, Sarasota:

“

I

f there’s anything that keeps restaurant executive Jimmy Mayberrie up at night, it’s enthusiasm — not worry — over the cluster of eateries he runs with three business partners. “I’m a super competitive person, and this excites me,” Mayberrie says. “I can’t wait to get out of bed and see our numbers from the night before.” The numbers of late at the company, which consists of a Greek restaurant in South Tampa and five Beef ‘O’ Brady’s statewide, are certainly worth getting out of bed for. The six restaurants, which span from Deltona on the east coast to Charlotte County, combined for $5 million to $10 million in sales in 2011. Executives project sales to increase at least 5% in 2012. The company doesn’t disclose specific revenue figures. The sports- and family-themed Beef ‘O’ Brady’s restaurants, several of which are quick turnarounds of faltering enterprises, are run under the Bayshore Co., a Tampa-based corporate entity. Mayberrie runs sales and marketing, while other tasks are split among his three business

“You have to train the staff how to run the restaurant when you are not there. That’s the No. 1 piece to the puzzle.”

partners: Cliff Longshore oversees operations; Rob Wolfenden handles new store development; and Chris Lewis heads leasing and real estate. The total employee count for all five restaurants is around 200. “We are building and growing,” Longshore says. “We are looking at other concepts.” One of those concepts, past Beef ’s, is You Say When Yogurt Shoppes, where the foursome has an ownership stake in 27 stores on the Gulf Coast and central

Florida. More significantly, the company is at the forefront of a revival at Tampabased Beef ’s, which has 210 locations in 22 states. For instance, Bayshore was the first in the Beef ’s chain to redesign and renovate restaurants with hardwood floors, and one of the first to offer a full liquor bar. The Adamo Drive location in Tampa, moreover, is the first one in the chain connected to a hotel. The chain named the Bayshore partners its developers of the year in 2011.

AT-A-GLANCE Beef ‘O’ Brady’s Headquarters: Tampa CEO: Chris Elliot Owner: Levine Leichtman Capital Partners Stores: 210, in 22 states Annual sales: At least $200 million Source: Beef ‘O’ Brady’s

“They have a strong business mindset and acumen,” says Beef ’s Chief Development Officer James Walker, who adds that the Bayshore partners are great at mentoring new franchisees. “They are very good at using numbers to make decisions.” Tampa entrepreneur Jim Mellody, in shooting for a neighborhood pub, opened the first Beef ’s in 1985 in Brandon. By the mid-2000s the chain had grown to 200plus stores and around $200 million in annual sales. Levine Leichtman Capital

GULF COAST BUSINESS REVIEW NOVEMBER 2 – NOVEMBER 8, 2012

www.review.net

THE PLAYERS

BEEF REDUX

The Bayshore Co., a Tampa-based hospitality firm that owns five Beef ‘O’ Brady’s statewide, consists of four business partners. The partners include: CHRISTOPHER LEWIS

CLIFF LONGSHORE

JIMMY MAYBERRIE

ROB WOLFENDEN

Handles leasing and real estate of new locations. Previously worked in sales and marketing for a Fortune 500 company.

Oversees operations. Management stops in restaurants include Flip Flops Bar & Grill and World of Wings Café and Wingery in Georgia.

In charge of marketing and sales. Worked for Durango USA and Tijuana Flats prior to Bayshore Co.

Runs new store development. Previously managed restaurants for several chains, including Rio Bravo Cantina and Tijuana Flats.

At Bayshore, meanwhile, the partners say the success stems almost entirely from a devotion to a simple system that works and sticking to it. “The core of our success is to serve cold food cold and hot food hot,” says Longshore. “We are also very persistent with the staff that everyone who comes through the front door is greeted.” On food service, Mayberrie adds that timing, down to the minute, is tightly watched. That goes to the company’s commitment to operating a homey, family-friendly place, not just a sports bar. Says Mayberrie: “We push the bar on getting the food out of the kitchen faster.” Of course, Longshore recognizes that to have a plan and to execute it daily can be two vastly different tasks — challenges that confront many entrepreneurs. At Bayshore, one solution is a heavy emphasis on training. “You have to train the staff how to run the restaurant when you are not there,” Longshore says. “That’s the No. 1 piece to the puzzle.” The Bayshore has slotted several pieces in place over the last five years. Those include: • Tampa Beef’s: This location, once owned by former Beef ’s president Nick Vojnovic, is in the Best Western Brandon Hotel and Conference Center. Sales at the restaurant, which Bayshore took over in 2008, average 25% more than the standard Beef ’s, says Longshore; • Gainesville Beef’s: The second Beef ’s attached to a hotel, Bayshore launched this store in 2009 at the Holiday Inn on University Avenue, near Ben Hill Griffin Stadium. The location has since set

Flops Bar & Grill approached Longshore with a management proposition to run the place. “They came to me and asked if I was ready to be a general manager,” says Longshore. “They told me I was the only one who knows this stuff inside and out.” Longshore took them up on the offer, back in 2000. Longshore later ran several other restaurants, including some in and around Atlanta. He co-founded Bayshore after meeting the other partners through mutual friends and business associates. Mayberrie says the four partners each bring a different skill to Bayshore, which is why it works so well. The Bayshore corporate office has three other employees, past the four partners. “We are a very small company, but we work like a large company,” Mayberrie says. “We have a whatever-it-takes attitude. We have a win-at-all-costs attitude.”

A 2-year-old program to reinvigorate hundreds of Beef ‘O’ Brady’s nationwide — Beef’s 2.0 — is in full effect on the Gulf Coast. The Bayshore Co., a Tampa-based hospitality firm, has rebuilt two locations in the region over the past year, one in Sarasota and another in Englewood. A father-son Beef’s ownership duo in Manatee County, meanwhile, reopened their location, in west Bradenton, in late August. “We really believe in the concept of family and sports,” says Pat Goneau, who runs the Bradenton Beef’s, on Cortez Road, with his son Kyle Goneau. “The brand in Florida is really good. People know Beef’s.” The Goneaus, who moved to the region from Indianapolis, ran a Beef’s on Manatee Avenue for a decade. But that location closed last year, when their landlord, Benderson Development, turned it and some other stores into a Fresh Market. Benderson paid for a large portion of the Beef’s build-out at the new Cortez Road location, says Goneau, though he and his son still spent $120,000 on the new store. Like some of the other Beef’s 2.0 locations, the Bradenton store has hardwood floors, natural light and more TVs. Goneau says sales at the Manatee Avenue location began to come back last year after a recession dip. Sales are up slightly in the new location, he adds. “I don’t think we’ll ever be back to where we were five years ago,” says Goneau. “But hopefully we will get a little bit back soon.”

What it takes

A chunk of Bayshore’s turnaround mojo comes from Longshore. A 12-year hospitality industry veteran, Longshore, 30, spent more time at bars while in college than classrooms — but for good reason. Longshore, starting with his freshman year at Georgia Southern University, in Statesboro, Ga., made extra money in restaurants. He tended bar and cleared tables. He was 18, and it was fun. Then one day the owners of the Flip

83020

Puzzle pieces

chain-wide records for one-day sales on days when the Gators have a home game; • Deltona Beach Beef’s: The partnership bought a closed Beef ’s location here in 2010 and quickly rebuilt it. The store now regularly hits $1.2 million a year in sales, says Longshore, which he adds is “well over the Beef ’s average unit volume.” • Englewood Beef’s: This location, south of Sarasota County, is one of three recent turnaround projects. Bayshore bought this Beef ’s in 2011 and closed it for a three-week renovation that cost at least $150,000. “It was old and outdated,” says Longshore. “We went in and gutted the place and did a full remodel and makeover.” The conversion, including 40 new 50-inch plasma TVs, worked: Year-over-year sales are up 86%, the largest percentage growth in the chain. • Sarasota Beef’s: This renovation, of what was formerly a Shaner’s Pizzeria, in a Clark Road strip mall, could be the most extensive Bayshore has done to date. “When we came into it we thought we had a turnkey restaurant,” Longshore says. “Turns out we had to do a whole new restaurant.” Features at the new restaurant ranged from a newer and bigger game room for families to taps for 20 beers. The project cost around $250,000. The location reopened in March, and sales, says Longshore, have since exceeded $30,000 a week.

81010

Partners, a Beverly Hills, Calif.,-based private equity firm, invested $24.5 million in Beef ’s in 2007, and is now a majority owner. Restaurant industry veteran Chris Elliott, previously an executive with Cinnabon and Church’s Chicken, is now CEO of the company, under Levine Leichtman.

11

12

GULF COAST BUSINESS REVIEW NOVEMBER 2 – NOVEMBER 8, 2012

www.review.net

ENTREPRENEURS

by Jean Gruss | Editor/Lee-Collier

REVIEW SUMMARY Company. Gyrene Burger Chief executive. Tom Monaghan Nancy DeNike

Tom Monaghan’s Gyrene Burger delivers hamburgers in less than 10 minutes from two stores in Naples.

Key. Delivering burgers could be bigger than pizza.

Burger Hustle Tom Monaghan became the Pizza Tiger when he built Domino’s Pizza into a delivery giant. Now he’s aiming to do the same with hamburgers.

“

“

C

an the man who built Domino’s Pizza do the same with hamburgers? Tom Monaghan, who founded Domino’s Pizza with one store and sold the restaurant colossus in 1998 for a reported $1 billion to Bain Capital, recently launched Gyrene Burger, promising 10-minute delivery of hamburgers. Now a Naples resident, Monaghan is starting out modestly with two Gyrene Burger stores in town. But watch out, because Monaghan believes the chain could eclipse Domino’s. “There’s that kind of potential, maybe even bigger,” he says. The trick is to make and deliver a greattasting burger to customers within a mileand-a-half radius of the store in less than 10 minutes using mopeds and bikes. Recently, one of the stores in Naples averaged eight minutes. “If I know anything, it’s how to deliver food fast,” Monaghan says. Gyrene is the nickname for a U.S. Marine and the employees dress the part in military fatigues. They run out of the store, jump on their scooters and salute customers on delivery. Monaghan has a bigger vision than eclipsing Domino’s success. He hopes that

Tom Monaghan: “If I know anything,

it’s how to deliver food fast.”

Gyrene Burger grows to the point where it can help fund Ave Maria University in eastern Collier County. Initially, a portion of the royalties will go to fund the new Catholic university, but Monaghan has plans to will it to the foundation he created for that purpose. Monaghan says he’s grown tired of raising funds for the university, which he funded with the Domino’s fortune in partnership with Barron Collier Cos. “Maybe I can make more money than I can raise,” he says. “One of the things I really missed was the income.” Monaghan says Microsoft founder Bill Gates called him a couple years ago to join the club of billionaires who plan to give their fortunes away to charity after they die. “I’ve already given 95% away,” he told

Gates, fulfilling a vow to give his fortune to Catholic charities. “He’s very competitive, and so I think he got real bored after he sold his company,” says Gary McCausland, Gyrene’s chief operating officer and the man who oversaw Domino’s international expansion. Monaghan, 75, fit and trim from daily Stairmaster workouts, intends to grow Gyrene Burger by selling franchises when the two Naples stores become profitable. “We still haven’t got the volume,” he says. “We’d probably have to do 200 burgers a day.”

Delivery giant

Monaghan started Domino’s with one store in Ann Arbor, Mich., in 1960 after serving three years in the U.S. Marine

Corps. By the time he sold it in 1998, Domino’s had 6,250 stores and ranked as the world’s largest pizza-delivery chain. At one point, Domino’s was opening three stores a day. When he started Domino’s, Monaghan says he wasn’t sure pizza would be successful and he considered delivering hamburgers instead. “It was going to be my backup if pizzas didn’t work,” he recalls. Now, more than 50 years later, Monaghan plans to do with hamburgers what he did with Domino’s. Except now he plans to do it faster. The key to Domino’s success was free delivery of a tasty, hot pizza in less than 30 minutes. Because it takes less time to make a hamburger than a pizza, Monaghan says his employees can deliver a hot burger within a mile-and-a-half radius in 10 minutes. He estimates it takes about four minutes to cook and assemble the burger and another four minutes for delivery. Like Domino’s, delivery is free. Back in 1960, pizza wasn’t as popular as it is today and free delivery in 30 minutes was unheard of. Likewise, people today aren’t accustomed to having a hamburger

GULF COAST BUSINESS REVIEW NOVEMBER 2 – NOVEMBER 8, 2012

delivered to them free in less than 10 minutes. “Educating the customer is the biggest challenge,” Monaghan acknowledges. Gyrene Burger has no dine-in seats or tables. Most of its business will be delivery, though it does sell carryout. Monaghan reasons that employees can’t take care of dine-in customers and deliver at the same time. More people are picking up carryout orders than he prefers, but Monaghan thinks 90% of more of the orders will eventually be delivery. If anyone knows the formula for consistency and fast delivery, it’s Monaghan. “Tom legitimized the delivery business,” says Paul Roney, the former corporate treasurer of Domino’s and now executive director of the Ave Maria Foundation. “He always comes up with a little bit of a twist, like the 30-minute guarantee. That’s part of his thinking and leadership: He’s such an out-of-the-box thinker.” To consistently accomplish those delivery times, Monaghan had a relentless focus on operations. “He was the best Domino’s pizza manager in the company,” says McCausland. “He made a million pizzas himself.” Monaghan emphasized timeliness through a variety of incentives. For example, he sponsored competitions with prizes such as a Rolex watch for the fastest pizza maker. The company had a Driver of the Week program that rewarded speedy delivery. In his autobiography, Pizza Tiger, Monaghan explains his reasoning: “The idea of stressing 30-minute delivery grew out of my insistence on giving customers a quality pizza: It didn’t make sense to use only the best ingredients in our pizza if the product was cold and tasteless when the customer got it.” Top executives weren’t exempt from being timely. McCausland remembers being late for his first executive team meeting and Monaghan telling him: “You’re 12 minutes late, get up and get out of here and set your watch 10 minutes fast and you won’t be late.” On another occasion, Monaghan chided McCausland after ending a jog after 58 minutes that they planned together to last 60 minutes. “We’re a time-sensitive company,” McCausland recalls Monaghan telling him. “If you think 58 is 60, how I can I trust you to get delivery times right?” At Gyrene Burger, Monaghan urges employees to hustle for every order, even it it’s the only one. He personally showed them how to run out the door. “Treat every order as if it’s the first in the rush,” he says. “Everyone who works here has to run a mile in 10 minutes.”

Profitable management

Monaghan’s ability to help others achieve great things is a big reason Domino’s became the powerhouse in pizza delivery. Indeed, Monaghan’s Gyrene Burger business card has “Buck Private” as his title, not CEO. Buck private is the lowest rank in the Marines. “The boss is a servant,” says Monaghan. “That’s why I’m a buck private.” “I’m big on incentives,” says Monaghan, whose Domino’s store managers earned 30% of the profits on top of their salary. “Domino’s looked like Mary Kay,” he says. The profit-and-loss statement is posted in every store. “I share financial information with employees,” says Monaghan, whose openness is unusual for a privately held company. “They want to be in on things.” Monaghan speculates why most privately held businesses don’t share financial information with their employees: “Most businesses are embarrassed to show profits because of how low they are,” he says. Monaghan always makes sure to chart a path for employees to climb. “Everybody who works here has a ladder,” he says. “I like growth from within.” For example, in the early days at Domino’s, the company was in danger of losing valuable employees who had become successful managers. So Monaghan devised a system that rewarded franchisees for training managers to become storeowners themselves. After requiring successful candidates to manage a store for at least one year, em-

www.review.net

MANAGEMENT TOOL: JP&R To evaluate employees and their supervisors at Domino’s Pizza, Tom Monaghan instituted what he called the Job Planning and Review (JP&R) system. An employee fills out a form before sitting down with his manager. Monaghan required this once a month from all his executives when he was building Domino’s Pizza and all employees had to go through this exercise at least once every three months. The form asks the employee to describe in his own language his job functions or tasks. Monaghan says that’s the best way to find out if an employee understands what he’s supposed to be doing. On the same page, the employee writes what the manager or the company is supposed to do to help him do his job better. This eliminates many of the petty grievances and helps managers and employees focus on solutions. The form also asks employees to list goals for the month ahead and how he plans to achieve them. Monaghan says that builds self-esteem as employees achieve the goals they set and helps managers establish accountability. The final part of the form is for the manager to fill out and share with the employee. The manager rates the employee and the employee has room for comments if he disagrees with the evaluation. “It’s a great management technique,” says Paul Roney, the former corporate treasurer of Domino’s. “It helps eliminate surprises in both directions.” Monaghan went further with top executives. Roney says Monaghan asked for the three or four things he had done each day in the form of a daily report. “When I first heard this I thought this is crazy,” Roney says. But Roney says he learned to appreciate the daily reports he sent to Monaghan. “It’s a communication mechanism, and it’s a way to get constant feedback,” Roney says. “It’s helpful because it makes you think about what you accomplished.”

ployees could open their own franchise. The franchisee who had trained them was then eligible to earn a percentage of the royalties from the new owner. At Gyrene Burger, Monaghan says he’ll seek out Marine Corps veterans to operate new stores, and he’ll help them finance the acquisition of their stores. “What they have is more valuable than money,” says Monaghan, who has started to advertise the franchises in a magazine for Marine Corps veterans. The Marine Corps teaches many of the same management skills that Monaghan emphasizes, such as attention to detail, cleanliness and hustle. He’ll ask veterans to put about $15,000 to $25,000 into the business and Monaghan says he’ll finance the rest. Monaghan estimates a franchisee can get into business for about $150,000, depending on the amount of work that needs to be done for a location. There is a franchise fee of $25,000 and royalties of 6.75% of sales, with 1% going to the Ave Maria Foundation. Monaghan estimates the store’s breakeven point is $500,000 in sales. The menu isn’t elaborate, but neither was Domino’s. Gyrene only offers two kinds of hamburgers ($5.99), French fries ($2.29) and water or Coke/Diet Coke ($1.15). “It’s a pretty simple operation,” Monaghan says. Monaghan says he’s not in a big hurry to franchise. He wants to make sure every detail of the operation works smoothly before growth can occur and avoid some of the near-corporate-death mistakes he made when he was growing Domino’s. “I’m not going to get ahead of myself,” he says.

13

management by

TOM

Courtesy

Tom Monaghan tossing a pizza in the early days of Domino’s Pizza when he had just a few stores. When he sold it in 1998, Domino’s had 6,250 stores.

Tom Monaghan grew Domino’s Pizza from a single store in Ann Arbor, Mich., in 1960 to a delivery giant with 6,250 stores when he sold it in 1998. Along the way, Monaghan created management tools that helped him grow the company to such lofty heights. These were gleaned from a recent interview with the Business Review, colleagues from Domino’s and his autobiography, Pizza Tiger. • Build dreams by setting exciting goals. “Goals must be exciting or people won’t be motivated to strive for them.” • Goals must be specific. “If a goal is specific, it is easy to communicate to others. This is important, because when you’re dealing with a corporate goal, you have to sell it to the people who can help you achieve it. They have to understand exactly what the goal is, they must believe it can be done and they must be convinced that it can be done by them.” • Communicate goals. “When you tell someone else what your goal is, it gives you reinforcement, added incentive to accomplish it.” • Work through others. “I realized right at the beginning that I had to do things through other people, and I always tried to hire people who were smarter than I was.” • Practice defensive management. “Defensive management means taking care of the business you have. I’ve always said that if you just take care of every single customer, your business will grow by 50% a year … that’s it. You don’t need any sophisticated marketing programs. The solution is simple and it’s right before your nose.” • Write it down. Monaghan always carries a yellow legal pad to list ideas

•

•

•

•

and the pros and cons for each one. “I sometimes compare my brainstorming on paper to the drilling of oil wells. My lists are wells, and every once in a while I hit a gusher.” Stay focused. Monaghan says he was successful because he focused on pizza, dropping sandwiches from the menu early in his career. “I’m a firm believer in keeping a business simple.” Don’t operate in the Ivory Tower. Get into the stores. Get out of the office. Visit with customers, employees and partners. “I’ve always said that our best ideas come from drivers — they’re out making contact with customers, and they’re usually young and have a fresh vision of how things can be made to work better. We want to share those visions, and any others we can get, all the way up the line.” Pay attention to the details. Monaghan likes to quote former Detroit Tigers Manager Sparky Anderson: “It’s the little things that win pennants.” Monaghan was known to show franchisees how to clean a store himself during surprise visits. Plow profits back into the business. Monaghan always invested profits back into the stores to focus on the long-term prospects of the business, often sacrificing his own income for that purpose.

14

GULF COAST BUSINESS REVIEW NOVEMBER 2 – NOVEMBER 8, 2012

www.review.net

CORPORATE REPORT

by Sean Roth | Real Estate Editor

Sarasota-based Salt & Light producer nominated for two Emmy Awards security, archiving and fax, networking and security software and hosts IT software products for small to medium-sized businesses.

Back in Motion Physical Therapy retains Clearwater’s JoTo PR

Maine-based Back in Motion Physical Therapy has hired Clearwater-based public relations firm JoTo to represent the business. Back in Motion Physical Therapy offers sports and orthopedic therapy, women’s health care, pre- and postsurgical rehab and sports injuries therapy.

Tampa’s Complex Beverage seeking investors partnership

The National Academy of Television Arts and Sciences has nominated a senior producer for Sarasota-based Salt & Light Productions for two regional Emmy Awards. Don Gangnagel was nominated for a short-form documentary he did on ShelterBox USA and a longform documentary on the Florida Highway Patrol. Both pieces were nominated in the topical documentary category. The ShelterBox USA documentary highlights the efforts of the nonprofit organization to provide shelter and disaster-specific equipment to people in need after a disaster. “Troopers: Inside the Florida Highway Patrol” follows the progress of Basic Recruit Class 118 through 27 weeks of training for new careers as Florida State Troopers. These two documentaries are the sixth and seventh Emmy Award nominations for Gangnagel. In 2009 and 2010, he won Emmy Awards for two Salt & Light films created for Micaiah Ministries and the Safe Place and Rape Crisis Center.

GFI Software offering antivirus software, supports Windows 8

Clearwater-based GFI Software has announced its Windows antivirus/malware VIPRE 6.0 software development kit. The new version was designed with several additional security features that software developers, PC utility providers and security vendors can integrate into their product offerings. A key new feature of the release is VIPRE Easy Install software, which allows PC utility providers to remove other security software from users’ computers upon installation. The VIPRE Easy Install can automatically detect and uninstall other anti-virus software and fragments of older programs without the need for user interaction. The SDK can also be adapted for use in conjugation with other antivirus scanners. The new version of the development kit contains a rapid scan feature; rootkit engine for greater protection, speed and automatic updates, and web filtering to prevent malicious and phishing websites. VIPRE 6.0 now also supports the Microsoft Windows 8 operating system. “We understand the vital role that anti-malware plays in this particular era of cyber security, and with our updated VIPRE 6.0 SDK we’re trying to bring the most cutting-edge security technologies we have to developers in a plug-and-play fashion, so they can make the security of their software automatic,” said Vice President of GFI Software’s Advanced Technology Group Julian Waits in a press release. GFI Software provides web and mail

Tampa-based Complex Beverage LLC is publicly looking for investors to help grow sales and distribution efforts. The national beverage company is seeking an investor with beverage experience to help introduce the new line of Lettuce Tea drinks into drug, health foods, mass merchandisers, convenience and specialty retail stores. The company says it would consider sharing 40% of profits with a potential investor. Potential investors are encouraged to e-mail bids, inquiries, proposal and questions to info@complexbeverage.com. “Recently, we signed a non-exclusive agreement with Export-Import EXIM Strategies Corp., a Texas-based company known to have extensive expertise in foreign markets; their focus is on globalizing the Lettuce Tea brand,” says Complex Beverage founder, Eddy Antoine. In addition, Complex Beverage has also signed a non-exclusive sales and marketing agreement with Nutrition Product International.

PSCU executive vice president to head Wis. credit union group

Madison, Wis.-based Credit Union Executives Society (CUES) has hired former Public Service Credit Union (PSCU) executive vice president Charles Fagan III as its president and CEO. Fagan takes over for the longtime leader of CUES, Fred Johnson, who Charles Fagan III retires Dec. 31. Johnson led CUES for 23 of its 50 years. “PSCU’s leadership position in the credit union industry is due in no small part to the dedication, excellence and professionalism of Chuck Fagan,” Mike Kelly, PSCU’s CEO and president. “Chuck has been a driving force in every step of PSCU’s growth and evolution since he arrived here in 1997.” During his tenure with PSCU, Fagan led the St. Petersburg-based credit union cooperative’s national sales and client relationship teams and helped guide its emerging payments technologies to its member-owner credit unions. PSCU is one of the nation’s top credit

LexJet’s MillerCoors contract extended another five years Distributors Solutions LLC has extended its arrangement with LexJet for the Sarasota-based company to be a preferred print shop supplier for MillerCoors distributor print shops through March 15, 2017. In July 2007, Golden, Colo.-based DSI signed an exclusive agreement with Coors (now MillerCoors) to negotiate and manage preferred supplier programs on behalf of the distributor network in a wide range of categories, including printing, cell phones and fleet services. LexJet’s contract was reportedly renewed based on its service, support, pricing, product breadth and on-time product delivery to the MillerCoors distribution network. Since the print shop supply program was initiated in late 2007, more than 400 distributors have actively participated in the LexJet/DSI Preferred Print Shop Supplier program, including some of the largest beverage distributors in the nation. union service organizations and serves more than 1,500 financial institutions nationwide. As a nonprofit cooperative, the company is owned by more than 680 member credit unions representing 16 million accounts. CUES is an independent, non-profit, international membership association for credit union executives. Its mission is to educate and develop credit union CEOs, directors and future leaders.

Ruth Eckerd Hall, Capitol Theatre retains Ovations Food Services

Lutz’s Ovations Food Services LP has been chosen to provide food and beverage services to Ruth Eckerd Hall and the Capitol Theatre. Ovations Food Services is a subsidiary of Comcast-Spectacor, one of the nation’s largest sports and entertainment firms. Ovations Food Services took over operations Nov. 1. Ovations plans to expand on the theater’s wine bar, introduce new pre-show food offerings in the east café area with its Pla Bistro concept and customize offerings to match the theme of events. The company’s long-term plans include expanding the food and beverage areas at the Historic Capitol Theatre in downtown Clearwater. This will allow for more amenities at the theater and the addition of a rooftop terrace overlooking the gulf. A similar expansion is expected shortly thereafter at Ruth Eckerd Hall, increasing the lobby space and allowing guests to mingle pre-show as well as enjoy increased food and beverage offerings

File photo

Art Lambert, left, co-founded Sarasota-based LexJet in 1994 with business partner Ron Simkins

tailored to each event.

Cox Media Group affiliate buys Valpak of Jacksonville franchise

Largo-based Valpak announced Cox Radio, an affiliate of its parent company, has purchased the Valpak of Jacksonville franchise. Prior to the acquisition, Valpak’s Jacksonville franchise was corporate-owned. Cox Radio owns five radio stations in the Jacksonville market. “The acquisition of Valpak of Jacksonville provides Cox Radio the perfect opportunity to cross-promote its business and extend the reach of its advertisers,” Bill Hendrich, vice president and market manager for Cox Media Group, says in a release. Hendrich, who currently handles all business and programming for the five radio stations in Jacksonville, will help oversee the interaction between Cox Radio and Valpak of Jacksonville. In addition, Ken Harrivel, who has been the general manager of Valpak of Jacksonville since 2004, will continue to run the day-to-day operations of the franchise. Valpak of Jacksonville currently mails to 170,000 households. At the same time, Valpak has signed a franchise agreement with business partners and previous Valpak customers, Russ Gittle and Guy Maranga, to expand into north Brooklyn. Prior to joining Valpak, Gittle and Maranga both worked as partners in the commercial and residential real estate industry and in 1988, launched Total Kitchen Outfitters, a wholesale and retail kitchen installation company.

GULF COAST BUSINESS REVIEW NOVEMBER 2 – NOVEMBER 8, 2012

by Dan Krassner and Sean Shaw

UPCOMING

Probe of Citizens should be widened Total transparency appears to be missing at Citizens Property Insurance. The governor should investigate Citizens’ closing of its Office of Corporate Integrity. There is a lack of oversight and accountability at Citizens Property Insurance Corp. Citizens President Barry Gilway recently terminated every employee within the Office of Corporate Integrity. These firings came after reports of lavish, non-mission critical spending. Abusing travel expenditures is unacceptable; gutting the watchdog inside the insurer of last resort is incomprehensible. We find it especially troubling that the four terminated employees were asked to sign additional confidentiality agreements beyond the code of ethics they already signed. The ethics code already addresses handling of confidential information related to claims and underwriting files, personnel files, information technology resources and other information of a sensitive or privileged nature. What else might be covered in the new confidentiality agreements? What do these individuals know that Citizens wants to keep secret? Were these investigators let go because they were doing their job too well? Accountability was missing from the Citizens Board of Governors meeting on Oct. 19. None of the board members questioned the move to eliminate the Office of Corporate Integrity. Citizens sent out a press release on Oct. 18 stating that the audit committee approved the changes, but Citizens changed its

story in a follow-up release. We appreciate Gov. Rick Scott’s public concern and his request that Florida’s chief inspector general scrutinize the wasteful travel expenditures. However, the focus of that investigation should be expanded to review the disbanding of the Office of Corporate Integrity. Integrity Florida and Policyholders of Florida sent a letter to Gov. Scott asking him to do just that. State Sen. Mike Fasano, R-New Port Richey, echoed our call. Florida Chief Financial Officer Jeff Atwater also supports broadening the investigation to find out why the four internal government watchdogs at Citizens were terminated. In an interview with the Associated Press, Citizens responded that it welcomed an investigation. We are encouraged that Gov. Scott and Gilway are open to an investigation into the closure of the Office of Corporate Integrity. We believe this independent review should be conducted as soon as possible, because Floridians deserve to know why four internal government watchdogs lost their jobs in the middle of the governor’s investigation. It is time for a closer look at Citizens’ accountability, ethics, transparency, and compliance. As consumer advocate and government watchdog coalitions, we only can scrutinize and protect policyholders and taxpayers with public information. We rely on internal watch-

15

dogs, inspectors, investigators, auditors and a transparent process to prevent corrupt use of public money and to safeguard the integrity of the public sector. It’s also important not to lose sight of what’s at stake — our recovering housing market. Floridians expect premiums to be used responsibly, and the market demands confidence in Citizens. Without this confidence, fewer new homeowners will enter the market. It will be too expensive and carry too much risk. We can’t afford this scenario. We must get to the bottom of why the culture at Citizens is so out of touch with its mission as the insurer of last resort. As a governmentrun corporation, Citizens needs a thorough review of its management practices and policies by the governor’s chief inspector general. That’s why Gov. Scott must expand this investigation. Dan Krassner is executive director of Integrity Florida, a nonpartisan, nonprofit research institute and government watchdog whose mission is to promote integrity in government and expose public corruption. Sean Shaw is a former state insurance consumer advocate and the founder of Policyholders of Florida. He is an attorney with Merlin Law Group, a national firm that represents policyholders in insurance cases and has offices in Tampa, Coral Gables and West Palm Beach.

CALENDAR OF EVENTS NOVEMBER 7 BUSINESS GROWTH: The Pasco Economic Development Council will host a business conference from 8:30 a.m. to 5 p.m. at the Conference Center at the Pasco-Hernando Community College West Campus, Building R, 10230 Ridge Road, New Port Richey. Kyle Nardo, one of the four Mastronardo brothers who own Nardo’s Natural; Matt Brosious, co-founder of FreightCenter.com; and Chuck Puccini, CEO of the Bauer Foundation, will be among the attendees. Cost is $35. For more information visit pascoedc.com/events or call 813-926-0827. THE ROSS SHOW: The Collier Building Industry Association will host its annual residential-market presentation featuring land broker Ross McIntosh. The event, dubbed the Ross Show, will run from 5:30 p.m. to 7:30 p.m. at St. John the Evangelist Life Center, 675 111th Ave., Naples. Cost is $25 for members, $35 for others. For more information call 239-436-6100, visit cbia.net or email amelia@cbia.net.

NOVEMBER 9 EMERGING TRENDS: Charles DiRocco, director of real estate research for PricewaterhouseCoopers, will discuss emerging trends in real estate. The meeting, which will also feature a panel of Southwest Florida developers, will run from 8 a.m. to 10 a.m. at the Grey Oaks Country Club, 2400 Grey Oaks Drive N., Everglades Room, Naples. Cost is $45 per person. For more information visit swflorida.uli. org.

NOVEMBER 13 ONLINE RETAIL: The Florida Venture Forum will host a discussion with entrepreneurs and investors about Internet retailing from 5:15 p.m. to 8 p.m. at the Grand Hyatt Tampa Bay, 2900 Bayport Drive, Tampa. Cost is $25 for members and $45 at the event. For more information visit floridaventureforum.org.

WOULD YOU LIKE

Jeff Button Jennifer Kleiber-Button

MORE TIME

941-378-2328

KLEIBER BUTTON INC. Lic. Real Estate Broker

FOR BUSINESS? F

idor r r o C I75 hase AC 3 P g / All din n a t S ree

Reduc We thought so.

ed

Sell t s u M

d& e v a P ed! ge Lot c u d e R ra o t S d Fence

Take advantage of our Loyal Reader subscription auto-renewal program and save precious minutes. No bills, no stamps, no missed issues. Contact our subscriptions department for details.

Start saving time!

SF $34 / ock High se / D a h P 3

Call: 877.231.8834 or Email: subscriptions@review.net

d Fence

/P

66821

rrid o C 5 I7

ard aved Y or

www.

SarasotaWarehouses.com

5,158 Sq/Ft Free Standing Building 6320 Danner Dr, Sarasota 3 Phase / Loading Dock / All A/C For Sale $370,000 5,000 Sq/Ft Free-Standing 1504 E 18th Ave Dr, Palmetto Includes 825 SF Office, 4 12’ x 14’ OHD 3 Phase Power – 16’ Clear Span Reduced $275,000 0.64 Acre Lot with 1,536 SF Building Street to Street Visibility from Mango to Lime Ave / Zoned ILW Reduced $350,000 17,500 SF Office / Warehouse 6332 17th Street Ct E, Sarasota Dock High Loading / 3 Phase Very Well Maintained / Nice Office For Sale $595,000 5,240 Sq/Ft Office / Warehouse Free Standing Fenced & Paved Yard 3216 15TH Street E, Bradenton Offices, Conference Room, Reception Zoned GC For Sale $366,800 3,000 Sq/Ft Office Warehouse Apex Rd in the I-75 Corridor 16’ Ceilings – Very Clean Reception with One Office $1,350/Month Gross

87056

MY VIEW

www.review.net

16

GULF COAST BUSINESS REVIEW NOVEMBER 2 – NOVEMBER 8, 2012

www.review.net

COMMERCIAL REAL ESTATE LEE-COLLIER-CHARLOTTE by Sean Roth | Real Estate Editor

Couple exercises purchase option, buys Holiday Court Motel

Construction is scheduled to start after the first of the year and last until mid- to late fall 2013. Fort Myers-based Sheeley Architects designed the project, and Sarasota’s Banks Engineering is doing the civil engineering. Stultz will be the general contractor for the development. Randy Thibaut and Carl Barraco Jr. of Land Solutions Inc. represented the seller. The purchase entity EBC 9011 Daniels LLC mortgaged the property to FineMark National Bank & Trust for $600,000.

Alladin and Verity Lane trust buys BNA Apartments

BUYER: Florida Rental Specialist LLC as trustee of the Alladin and Verity Lane Land Trust, Naples SELLER: SA Florida One LLC PROPERTY: 4615, 4619, 4711 and 4715 Verity Lane, and 4619 and 4711 Alladin Lane, Naples PRICE: $946,0000 PREVIOUS PRICE: $1.95 million, April 2005 TITLE FIRM ON DEED: Paradise Coast Title & Escrow LLC, Naples

CoStar

925 Estero Blvd., Fort Myers Beach BUYER: Steven and Catherine Lisay, Fort Myers

Beach SELLER: 925 Estero Boulevard LLC PROPERTY: 925 Estero Blvd., Fort Myers Beach PRICE: $2.2 million PREVIOUS PRICE: $3.2 million, April 2005 LAW FIRM ON DEED: Duncan & Associates PA,

Fort Myers

PLANS, DESCRIPTION: Steven and Catherine Lisay purchased the 20-unit Holiday Court Motel on Fort Myers Beach for $2.2 million. The price equated to $11,000 per unit. Located near the beach, the motel features one- and two-bedroom cottages, a swimming pool, laundry facilities and boat docks. The property was originally developed in 1952. The Lisays have been operating the motel for the past two years and recently decided to execute the lease-purchase agreement the couple had with the former owner.

Etc…

• BC 8291 DD LLC leased 2,200 square feet of retail space at 8291-8293 Dani Drive, Fort Myers from Central Line Properties LLC. Karen JohnsonCrowther of Colliers International Southwest Florida represented the landlord and Bob Pekol of LandQwest Commercial represented the tenant. • RTS Marine Services Inc. purchased an 825-square-foot office condominium at 14090 Metropolis Ave., Suite 203, Fort Myers from Preferred Community Bank for $123,400. Jim Boback of Boback Commercial Group handled the transaction. • Son Thanh Nguyen purchased a 1,785-square-foot office/retail condominium at 2814 Lee Blvd., Unit 9, Lehigh Acres in a short sale from Bhojam Again LLC for $150,000. Paul Kalka of Boback Commercial Group handled the transaction. • Brad Cox of Thomas D. Wood and Co. secured $900,000 and $150,000 in financing for Riverdale Center in Fort Myers through Gravitas Leasing LLC. Cox arraigned a two-year loan for the center’s owner with a 12% interest rate and a 65% loan to value. The borrower’s existing loan had matured. The 75,581-squarefoot retail center at 14561 Palm Beach Blvd., Fort Myer was built in 1983. • L-Architecture LLC Managing Partner Fernando Zabala has bought out the holdings of his former partner Brian Leaders and formed a new partnership with Carl Erickson. The Naples-based architecture firm is known for designing luxury residential, multifamily, commercial, hospitality and institutional projects, including the Dalton Discovery Center, Wildlife Rehabilitation Center for the Conservancy of Southwest Florida. Along with his designs Erickson also puts together conceptual land use studies for

“We been here running the hotel and just got our financing,” says Steven Lisay. “We’ve been doing some improvements over the past couple of years, things like upgrading the furniture. We certainly liked the area; we’ve vacationed here in the past.” Owning and managing the hotel is a second career for the couple. Steven Lisay worked for a number of years as the controller for a manufacturing facility in New Hampshire. The Lisays mortgaged the property to First Community Bank of Southwest Florida for $1.8 million.

Fort Myers general contactor planning Daniels retail center

BUYER: EBC 9011 Daniels LLC (principals: John

and Jeff Stultz), Fort Myers SELLER: PDI LLC PROPERTY: 9011 Daniels Parkway, Fort Myers PRICE: $1 million

multi-national companies • The investment group Ocean Avenue LLP purchased the 9,295-square-foot Parish Olde Towne Centre office building at 1020 Eighth Ave. S., Naples from Parish Olde Towne Centre Inc. for $875,000. David Stevens of Investment Properties Corp represented the buyer and Bruce Miner of Cameron Real Estate Services represented the seller. • General Part Distribution LLC leased 5,000 square feet of retail space at 1109 Tamiami Trail, Unit 1, Port Charlotte, from Trojan Electronic Supply Co. Inc. Ronald Struthers of Coldwell Banker Commercial NRT represented the landlord and John Dottore of The Shopping Center Group LLC represented the tenant. • Kellogg & Kimsey Inc. has hired Cuhaci & Peterson Architects to design the interior renovations for a JCPenney store in the Mall at Port Charlotte. • XL – Care Inc. of Collier leased 4,000 square feet of office space in World Plaza at 12610 World Plaza Lane, Fort Myers from WP 12620 LLC. Brandon Stoneburner of CRE Consultants handled the transaction. • Park Place Lehigh LLC purchased Park Place Apartments, a 35-unit apartment property at 145 Homestead Road S., Lehigh Acres, from Park Place II Ltd for $560,000. The price equated to $16,000 per unit or $19 per square foot. Constructed in 1993 under the Section 42 low-income housing tax credit program, the property consists of six one-story buildings. Jonathan Richards of CRE Consultants represented the seller. • Southeast Spreading Properties LLC leased 14,750 square feet of industrial space at 16601-16603 Old U.S. 41, Fort Myers from Land Baron III LLC. Bob Johnston, Jerry Messonnier and Derek Bornhorst of Lee & Associates;’ NaplesFort Myers office handled the transaction.

PREVIOUS PRICE: $564,700, November 2000 LAW FIRM ON DEED: Anthony J. Gargano PA,

Fort Myers

PLANS, DESCRIPTION: Fort Myers-based Stultz Inc. purchased 1.54 acres between Six Mile Cypress Parkway and Interstate 75 for $1 million. The price equated to $649,351 per acre. The new owner plans to develop an 8,300-square-foot retail strip center on the property. “We’re in talks with [potential] tenants now,” says Jeff Stultz, vice president and project manager for Stultz. “At least one of them is a national retailer. What we liked about it was its proximity to I-75 and the demographics in that area. It has an above average household income and a number of very nice residential communities nearby. There’s a good customer base.” Stultz says that although there are other retailers in that area, the company feels that there are unmet categories.

Val Ward Cadillac renovation rendering • GMA Architects and Planners finalized the design for the renovation of the 17,000-square-foot Val Ward Cadillac dealership on South Tamiami Trail in Fort Myers. The project includes an upgrade to the main showroom and exterior facades and redesigning the main building. The project also includes renovating the showroom, customer service offices, service department, client waiting room, service lanes and restrooms. GMA worked with Owen-Ames-Kimball and Val Ward Cadillac to follow Cadillac’s corporate design guidelines throughout the design process. The project is scheduled for completion in early 2013. • Jens Design and Steve Cole Installations LLC leased 4,526 square feet of industrial space at 11400 Metro Parkway, Unit 1, Fort Myers from Webco Properties. Bob Johnston, Jerry Messonnier and Derek Bornhorst of Lee & Associates’ Naples-Fort Myers office handled the transaction. • Sensitek Sight and Sound LLC leased 3,072 square feet of industrial space at 12801 Commerce Lakes Drive, Suite 25 and 26, Fort Myers from Redus Florida Commercial. Bob Johnston, Jerry Messonnier and Derek Bornhorst of Lee & Associates’ Naples- Fort Myers office handled the transaction. • Fort Myers-based J.L. Wallace Inc. has been honored with two awards from the National Association of Church De-

PLANS, DESCRIPTION: Florida Rental Specialist LLC purchased the 24-unit BNA Apartments on behalf of the Alladin and Verity Lane Land Trust for $946,000. The price equated to $39,417 per unit. The property consists of six adjacent buildings, each with its own parcel. Four of the buildings, located on Verity Lane, are triplexes and the other two are six-plexes. The triplex buildings, which were constructed between 1978 and 1981, feature all two-bedroom and two-bathroom units with attached garages. The two six-plex buildings on Alladin Lane were built in 1989 and feature a mix of two studio units and 10 two-bedroom and two-bathroom units with screened-in patios. Three of the units were vacant at the time of the sale. Michael Donaldson of Marcus & Millichap’s Tampa office represented the seller and Matthew Pikus of Pikus Realty PA in Naples represented the buyer. “They plan on renovating it extensively and putting new appliances and cabinetry in the units,” says Donaldson. “There are some pending evictions and some deferred maintenance. They plan to turn it around to its full potential.”

sign Builders. The contractor received the 2011 Best Renovation Honor Award for Next Level Church located on Plantation Road in Fort Myers and the 2011 Best Ancillary Facility Honor Award for the Ave Maria University Tom Golisano Field House in Ave Maria. • Western Site Services LLC purchased seven commercial parcels totaling 4.98 acres at 26485 Old 41 Road, Bonita Springs from Centex Homes for $375,000. Randy Thibaut and William Rollins of Land Solutions represented the seller. • Grand Caloosa Estates LLC purchased 109.81 acres at 23631 State Road 80, Alva for $658,860. Randy Thibaut and Mike Price of Land Solutions Inc. handled the transaction. • The Florida Department of Transportation is expected to start construction this fall on a $54.1 million direct connect project to improve access from Interstate 75 to Southwest Florida International Airport. Construction crews will build a roadway system that moves traffic from new lanes next to the interstate across two bridges onto Terminal Access Road, the entrance to the airport. Construction on the project has been configured to occur in phases. Early work will focus on clearing vegetation and digging retention ponds. Later phases include building the bridges over I-75 and Treeline Avenue/Ben Hill Griffin Parkway and constructing new lanes parallel to I-75. The entrance to the airport at Terminal Access Road and the intersection at Treeline Avenue/Ben Hill Griffin Parkway will remain open during the entire construction project. • Compass Management Group leased 11,300 square feet of office space in Regions Bank Building at 4851 Tamiami Trail N., Naples. Dougall McCorkle of Premier Commercial Inc. represented the tenant and Ray DeAngelis represented the landlord.

GULF COAST BUSINESS REVIEW NOVEMBER 2 – NOVEMBER 8, 2012

www.review.net

17

COMMERCIAL REAL ESTATE TAMPA BAY by Sean Roth | Real Estate Editor

Atlanta’s Pollack Shores Etc‌ starts Tampa NOHO Flats

Orlando Hampton Inn & Suites rendering

Tampa Developers building $20M Orlando hotel

Tampa-based CJP Columbia Properties LLC plans to build a $20 million Hampton Inns & Suites hotel on the campus of Orlando Health near Orlando’s city core. Construction of the hotel is expected to start by mid-2013 with a planned opening in mid-2014. No contactor has been chosen yet for the project. The 2.3-acre hotel site is the first phase of a larger complex spanning nearly four acres that also includes plans for a 100,000-square-foot medial office building that also will be built by CJP, says Project Manager Brian Funk. Funk explains that while the Orlando area has one of the nation’s highest number of hotel rooms per capita, the city’s downtown core is underserved by limited-service hotels like Hampton Inns

A joint venture of the Liberty Group and DeBartolo Development have acquired the Holiday Inn Express & Suites by IHG in Jacksonville. Built in 2004, the hotel is located on the St. Johns River, minutes from the Jacksonville Airport and adjacent to the Jaxport Carnival Cruise Ship Terminal on Blount Island. The building features 73 guestrooms including 17 suites, an outdoor pool, fitness center, 2,000 square feet of meeting space and an atrium-style great room. The joint venture acquired the nonperforming senior mortgage in 2011 and recently received ownership of the property in Federal Court after a bankruptcy and foreclosure case. Liberty Hospitality Management, an affiliated-entity of the Liberty Group, will manage the hotel. “This hotel perfectly complements our growing portfolio and investment strategy of acquiring under-valued top-tier assets,� Punit Shah, president and chief operating officer of the Liberty Group, says in a press release. Shah says the property was in good shape and will most benefit from professional management. The hotel was most recently sold in 2006 for $6.5 million.

6HUYLFH 'LUHFWRU\ SMALL COMMERCIAL REAL ESTATE

LOANS We Are a Direct Correspondent for 16 Life Insurance Company Lenders

500,000 - $7,500,000 Rates in the Low to High 4% Rage Up to 20 Year Terms

™ ;jaan [jgc^h]ZY D[ÒXZ Hj^iZhÅ[gdb (.*$bd# ™ HbVaa dg aVg\Z 8dc[ZgZcXZ Gddbh ™ K^gijVa D[ÒXZ Egd\gVbh Å[gdb +*$bd# OUR FREE ™ K^YZd"8dc[ZgZcX^c\ RENT SPECIALS ™ ;jaa gVc\Z d[ 6Yb^c^higVi^kZ HZgk^XZh ™ ;aZm^WaZ eaVch id VXXdbbdYViZ \gdli] ™ 8]d^XZ d[ dei^dch id hj^i Vcn WjY\Zi ™ EZg[ZXi [dg ZmeVcY^c\ Wjh^cZhhZh! egd[Zhh^dcVah VcY ]dbZ WVhZY Wjh^cZhhZh#

✓

$

UĂŠ ÂŤ>Ă€ĂŒÂ“iÂ˜ĂŒĂƒ UĂŠ,iĂŒ>ˆÂ? UĂŠ"vvˆVi UĂŠ ˜`Ă•ĂƒĂŒĂ€Âˆ>Â? UĂŠ Â?iĂ? UĂŠ-iÂ?v‡-ĂŒÂœĂ€>}i UĂŠ ÂœĂŒiÂ?Ăƒ

Business solutions and office suites tailored to fit all of your needs.

SARASOTA EXECUTIVE SUITES‌ your “Business Bridgeâ€? to Success. 677 N. Washington Blvd. Sarasota, FL 34236

BRAD A. COX, CCIM, CPM, SVP

941.952.0076

Thomas D. Wood and Company | 941-552-9731 www.bradacox.com | Email: bcox@tdwood.com

www.SarasotaExecutiveSuites.com

89932

Liberty Group, DeBartolo acquired Jacksonville Holiday Inn Express

%86,1(66

7+( '20(

FOR SALE

)/($ 0$5.(7 W NE

EVENTS CENTER

INVESTMENT OPPORTUNITY 2844 PROCTOR RD.

Established Multi-Tenants 2173sf - 99% Leased Excellent Visibility – Zoned OPI

(!6% 9/52 %6%.4 /2 3(/7 (%2% s 4ABLED "OOTHS

s #ONVENIENT

0ARKING s !IR #ONDITIONED 3EPARATE "UILDING s PER DAY

MARCIA CUTTLER (941) 923-0535

2EGULAR -ARKET &RI 3AT 3UN s $AILY "OOTHS ONLY $20

32 s 6ENICE &, s

WWW THEDOMEmEAMARKET COM

91889

& Suites. Orlando’s downtown core has roughly 1,500 hotel rooms. “The site was a natural for a hotel of this type,� says Jeff Meehan, a CJP partner. “It is centrally located on Columbia [Street], which is a main downtown artery that is near the city’s performing arts center, the city hall, sports facilities and just a block from the new hospital on the Orlando Health campus. Because of that, the hotel will be extremely convenient for business travelers, sports enthusiasts, people interested in the arts and members of the medical community. Orlando Health serves nearly two million Florida residents and 4,500 international visitors annually.� CJP Columbia Properties LLC is the latest venture by Charles Funk and Jeff Meehan – real estate developers and investors who have developed or managed properties worth $1.5 billion over the past 30 years. The duo is currently constructing Seabourn Cove, the nation’s largest green apartment community in Boynton Beach. The 22-acre community will contain 456 apartment homes. Funk has developed, owned and managed more than 1 million square feet of industrial space on Florida’s west coast through Carlyle Investments Inc., which he founded in 1980. Together, Meehan and Funk head up HG Management LLC, which coordinates the construction and sale of singlefamily homes and apartments in unique established and water-oriented locations throughout Florida.

90592

Atlanta-based Pollack Shores Real Estate Group has started construction on the NOHO Flats at North Hyde Park. The developer plans to create a new 311unit apartment community at 405 N. Rome St., Tampa just west of downtown Tampa. The $36.7 million development is adjacent to the 20-acre site of the future Tampa General Hospital rehabilitation center. The NOHO Flats at North Hyde Park is scheduled to open fall 2013. “We are excited about the dynamic growth of urban residential living in Tampa’s downtown,� Steven Shores, president at Pollack Shores Real Estate Group, says in a press release. Designed by Poole and Poole Architecture, NOHO Flats will include a fountain courtyard with fire pits and outside seating and a swimming pool with fountain and outdoor grill area. It will also feature a lounge area kitchen and bar, fitness center and large club room with a separate conference/dining room. Pollack Shores Real Estate Group is a real estate investment and service firm focused on multifamily and mixed-use properties. Over the past 30 years, Pollack Shores has invested in more than 35,000 residential units, valued at more than $3.2 billion. The firm is currently involved with communities in Atlanta, Nashville, Orlando, Tampa and St. Petersburg.

89933

The NOHO Flats at North Hyde Park rendering

• Wheelock Street Capital has hired Tampa-based McKibbon Hotel Management Inc. to manage seven of its hotels. The hotels include the Hampton Inn Atlanta-Perimeter Center, Georgia; Hilton Garden Inn Atlanta North/ Alpharetta, Ga., Hampton Inn & Suites Raleigh/Cary, N.C., Homewood Suites Raleigh-Crabtree Valley, N.C., Hampton Inn Charlotte-University Place, N.C., Comfort Inn Fort Bragg, N.C., and Holiday Inn Express Clearwater East-Icot Center. • St. Petersburg-based Bessolo Design Group Inc. will provide architectural and engineering services for a 119-unit, 139,400-square-foot independent living facility in Niceville. The facility will include a two-story entry lobby/dining room and bedroom units with full kitchens. • St. Petersburg-based Bessolo Design Group Inc. will provide architectural, interior and engineering services for a community center in Yalaha. The development will feature seating for 72 people in the main public/conference area and a kitchen with serving counters, storage and restroom facilities. • Grimaldi’s Pizzeria has opened a new 4,000-square-foot restaurant in Westfield Citrus Park at 7990 Citrus Park Town Center, Tampa. The restaurant offers both indoor and outdoor dining along with a private dining room and an outdoor patio. Grimaldi’s Pizzeria currently has 28 locations across the United States, including five in Florida. • Chalmers and Co. purchased 10 residential lots at 6202 Anhinga Place, Tampa from Rottlund Homes for $130,000. The buyer plans to develop townhomes. Renee Dyer and Jill Carbonelli of Prudential Commercial Real Estate FL handled the transaction. • Beech Street Capital LLC closed

a $16.4 million Freddie Mac Capital Markets loan on the 463-unit Cooper’s Pond Apartments in Tampa for Robbins Property Associates. Mitch Sinberg and Michael Wallace of Beech Street’s Fort Lauderdale and Orlando offices originated the transaction. The seven-year loan is interest-only for two years. • Innovation Cabinetry has completed a new corporate headquarters at 7030 Anderson Road, Tampa. The 40,000-square-foot facility features a new contractors’ showroom and design center and national distribution warehouse. “We’re excited about being more centrally located for our clients in our new main office in Tampa, where we have been operating since February,â€? Don Jones, vice president for Innovation Cabinetry. “Our showroom and design center has been in various stages of preparation but is now complete.â€? • Just months after moving into new offices ConnectWise Inc., one of Tampa’s largest software vendors, is expanding again. The company has leased 35,000 square feet in Fountain Square II, an office building located near its national headquarters at Independence Parkway and the Veterans Expressway in the Westshore district. ConnectWise will occupy the entire fourth floor of Fountain Square II. The deal, which was brokered by Jimmy Garvey and Joe Taggart of CLW, brings the building occupancy to more than 97%. New York-based Feldman Equities Inc., Maitland-based Tower Realty Partners Inc. and TriGate Capital acquired the 134,000-square-foot Fountain Square II building early last year. • Great Expressions Dental Centers leased 2,400 square feet of retail space at 5002 73rd Ave. N., Pinellas Park. Jeremy Kral of LandQwest Commercial’s Tampa office represented the tenant.

18

GULF COAST BUSINESS REVIEW NOVEMBER 2 – NOVEMBER 8, 2012

www.review.net

COMMERCIAL REAL ESTATE SARASOTA-MANATEE

by Sean Roth | Real Estate Editor

Sarasota investors Cotner, Alogna buy two Longboat villa buildings to the second building]. Our rough estimate is by February we hope to have it completed.” Marni Hayden of My Realty Co. represented the buyer and Dia Wilson of Barrier Island Realty represented the seller. Hayden has also been retained to market the villa units for lease or sale.

Gecko’s Hospitality Group buys Bee Ridge gas station

Twin Shore Villas BUYER: CB Cotner Trust 2004 and the JM Alogna Trust SELLER: Twin Shores Mobile Home Owners Association Inc. PROPERTY: 3740 Gulf of Mexico Drive, Longboat Key PRICE: $285,000 and $750,000 PREVIOUS PRICE: $3.6 million, February 1998

PLANS, DESCRIPTION: Carol Beth Cotner and John Alogna of Sarasota purchased two multifamily villa buildings on the Twin Shores boat basin for a total of $1.01 million. The price equated to $126,000 per unit. The northern most of the two 1950sera buildings was fully renovated in 2006 and has four rentable residential units. The southern building, which originally had four units as well, was sold as an unfinished building shell. “They’re beautiful villas,” Cotner says. “We were able to get four brand new villas on Longboat, which is a prime place to own property. We have hired a contractor who will be drawing up plans for the commission [for improvements

BUYER: Gecko’s Hospitality Group LLC (principals: Michael Quillen and Michael Gowan), Sarasota SELLER: Edmonia Davies, individually and as trustee of the Edmonia O. Davies Trust PROPERTY: 2407 Bee Ridge Road, Sarasota PRICE: $500,000

PLANS, DESCRIPTION: Gecko’s Grill & Pub’s parent company, Gecko’s Hospitality Group LLC, purchased a former gas station for $500,000. The price equated to $21 per square foot for the land. The site, located at the northeast corner of Bee Ridge Road and Shade Avenue, contains a 1,638-square-foot gas station building. Company president Mike Quillen says the restaurant company has been working for the past eight months on a new business venture it plans to locate on the property. “We hope to open there in the next three-and-a-half to four months,” he says. Mike Gowan and Quillen started Gecko’s in 1992. Today, it has five Gecko’s locations: two in Manatee County and three in Sarasota County. The chain employs more than 300 people. John Harshman of Harshman & Company Inc. represented the seller and Nick DeVito of Ian Black Real Estate represented the buyer.

COMMERCIAL REAL ESTATE

by Sean Roth | Real Estate Editor

Transactions DEEDS/MORTGAGES

(on multiple properties), General Electric Capital Corp., nursing, 518 W. Fletcher Ave., Tampa, 2012362272.

The following real estate transactions more than $1,000,000 were filed in Charlotte, Collier, Hillsborough, Lee, Manatee, Pasco, Pinellas and Sarasota county courthouses. The information lists the seller, buyer, amount of sale, mortgage and lender, if available, address and book and page of the document.

CSMC 2007 C3 Premier North LLC sold to AGI Acquisition II LLC, $8,505,000, Mortgage: $6,800,000, USAmeriBank, in SEC 21-28S-18E, 2012370000.

CHARLOTTE COUNTY

Belmont Real Estate LLC sold to Lennar Homes LLC, $3,052,000, various lots, Belmont, 2012372860.

None

COLLIER COUNTY Randall Bellestri, individually and as trustee of the Randal D. Bellestri Living Trust sold to SH Development LLC, $5,700,000, Mortgage: $4,500,000, Randall Bellestri, individually and as trustee of the Randal D. Bellestri Living Trust, lot 59 and a portion of lot 58, Rum Row section, 4752429. Villas Encorvada LLC sold to Mustique of Olde Naples LLC, $2,402,055, single-family residential and multifamily, 501, 515 and 555 Fourth Ave. S. and 361 Fifth St. S., Naples, 4749891. Sano Associates Inc. sold in lieu of foreclosure to Fifth Third Bank, $1,966,432.51, vacant industrial, 3489 Shearwater St. in White Lake Corporate Park, phase three, 4750646.

HILLSBOROUGH COUNTY Diamond Senior Living I LLC sold to Decathlon RE Magnolia LLC, $11,994,031, Mortgage: $81,525,000 (on multiple properties), General Electric Capital Corp., Magnolia Health & Rehabilitation Center, in SEC 28-36S-18E, 2012355643. Diamond Senior Living I LLC sold to Decathlon RE Fletcher LLC, $9,001,288, Mortgage: $81,525,000

Media General Operations Inc. sold to Tampa Media Group Inc., $3,872,842.60, office, a portion of 509 Hyde Park Ave., Tampa, 2012364159.

Leslie Thompson as trustee of the Leslie V.Thompson Revocable Trust sold to Ostra Holdings Inc., $3,000,000, warehouse, 2101 and 2103 E. Second Ave. and vacant industrial, 2004 E. Second Ave., Tampa, 2012374390. Belmont Real Estate LLC sold to Beazer Homes Corp., $2,996,000, various lots, Belmont, 2012372861. O CHK Inc. fka Boston Market Real Estate Co. sold to 9460 LLC, $2,046,645, restaurant, 2708 W. Dr. Martin Luther King Jr. Blvd., Tampa, 2012360879. Richard Dauval as trustee for the bankruptcy estate of TH-TAW LLC sold to Riverside Heights Holdings II LLC, $2,043,872.10, light manufacturing, 1910 Ola Ave., Tampa, 2012363473. American Spectrum Realty Inc. sold to AQQ Florida LLC, $2,018,144.95, Mortgage: $2,916,592, Reliance Bank, mini warehouse, 1108 Skipper Road, Tampa, 2012372598. PC Retail LLC sold to Simoes Property Group Florida LLC, $1,600,000, vacant commercial, 1.04 acres, at the corner of Everhart Road and S. U.S. 301, lot 2, Pavilion Crossing South, 2012356658. Cresk LLC sold to MWPPDS LLC, $1,450,000, Mortgage: $725,000, Cresk LLC, strip center, 506 W. Fletcher Ave., Tampa, 2012364317. Laxer Family Limited Partnership sold to Waters & Benjamin LLC, $1,450,000, Mortgage: $2,164,500,

Lennar Homes buys land for first Lakewood Ranch community BUYER: Lennar Homes LLC, Fort Myers SELLER: SMR North 70 LLC PROPERTY: 4810 Lorraine Road, 5895 Pope

Road and additional land, Bradenton PRICE: $6.6 million TITLE FIRM ON DEED: University Title Services, Lakewood Ranch

PLANS, DESCRIPTION: Miami-based Lennar Homes purchased 172.15 acres in the Bridgewater area of Lakewood Ranch for $6.6 million. The price equated to $38,339 per acre. Lennar Homes has announced its plans to build as many as 281 estate and manor homes on the property. The development is the national homebuilder’s first project in Lakewood Ranch. Construction on the first home is scheduled to start in early 2013. Lennar says that as of Sept. 30, there were 439 new homes sold in Lakewood Ranch, an increase of 48% over last year at this time, and more than 2011’s entire total of 391. There are currently 304 homes under various stages of construction. “There’s still a lot of planning that’s going on,” says Matt Devereaux, vice president of sales for Lennar Homes in Southwest Florida, noting Lennar is finalizing pricing, marketing strategies and the floor plans it will offer. At this time, Lennar plans to offer two home styles, including those in its Manor and Estates model series. The Estate floor plan will be one similar to the one offered in River Strand, but likely will be updated, Devereaux says. Homes will range in size from 1,861 to 3,800 square feet and be three to six bedrooms, with two- and three-car garages. — additional reporting by Pam Eubanks, correspondent

USAmeriBank, crops, 8.31 acres, 5702 W. Waters Ave., Tampa, 2012362243.

LEE COUNTY Orange Harbor Mobile Home Park LLC sold to Orange Harbor Co-Op Inc., $36,000,000, Mortgage: $28,800,000, Bank of America NA, mobile home park, 5749 Palm Beach Blvd., Fort Myers, 2012000226486. Oasis Associates LLC sold to Domus Group II LLC, $10,663,698.65, Mortgage: $6,000,000, Seaside National Bank & Trust and $5,000,000, Randall A. Bono Revocable Living Trust, various units and penthouses in Oasis Tower One condominium, 2012000224242. IAS Hotel LLC sold to Bonita Springs HS LLC, $3,350,000, Mortgage: $3,825,000, The Farmers State Bank and Trust Co., hotel or motel, 8901 Highland Woods Blvd., Bonita Springs, 2012000226247. FCB Franklin Arms LLC sold to NRES Franklin Arms Building LLC, $3,250,000, Mortgage: $2,050,000 and $600,000, BRT RLOC LLC, a portion of the block 8, James Homestead, Fort Myers, 2012000221266. New ERA Acquisitions LLC sold to Province Park Investors LLC, $2,583,000, units 201-605, building 9, Greens Edge at Province Park condominium, 2012000228740. 925 Estero Boulevard LLC sold to Steven and Catherine Lisay, $2,200,000, Mortgage; $1,800,000, First Community Bank of Southwest Florida, hotel or motels, 925 Estero Blvd., Fort Myers Beach, 2012000219846. EBD Property Holdings LLC sold to New Era Acquisitions LLC, $1,900,000, units 101-605, building 9, Greens Edge at Province Park condominium, 2012000228737. Eagle FL VI SPE LLC sold to Harmony Estates LLC, $1,600,000, 902.66 acres, 1699 Joel Boulevard and an additional land in Lehigh Acres also known as SEC 10-44S-27E, 2012000223178.

MANATEE COUNTY ABNK Properties LLC sold in lieu of foreclosure to Comm 2006-FL12 Florida SPE LLC, $6,612,203.41, supermarkets, 7415 W. Manatee Ave., Bradenton, 02441-3892.

Etc… • Imagine School at North Port Inc.

purchased vacant land at 2597 Sycamore St., North Port from M&I Regional Properties LLC for $100,000. Ronald Struthers of Coldwell Banker Commercial NRT handled the transaction. • Manasota Commercial Construction Co. Inc. broke ground on Cooper Family Medical Group’s 11,100-squarefoot medical facility at 5123 Fourth Ave. Circle E., Bradenton. The new $1.8 million facility, adjacent to the group’s current location, includes specialized offices with space for additional physician growth. • Raad Realty LLC purchased 1,119 square feet at 4025 Crockers Lake Blvd., Unit 21, Sarasota from FHLM Corp. for $70,000. Albert Dumas of Re/Max Alliance Group represented the seller and Marcia Cuttler of American Property Group of Sarasota Inc. represented the buyer. • Kellogg & Kimsey Inc. has hired Cuhaci & Peterson Architects to design the interior renovations for a JCPenney store in DeSoto Mall in Bradenton. • Naples-based Build LLC has completed a clubhouse and recreational area in Bradenton for WCI - Tidewater Preserve. The facility includes a 7,100-square-foot clubhouse with a stone fireplace, fitness center, pool table and multiple lounge areas. Build worked on the project in collaboration with Affiniti Architects. • Rapid Composites LLC leased 2,500 square feet of industrial space at 6222 Porter Road, Sarasota, from Brazos XX LLC. Roberta Kolton, of the commercial division of Michael Saunders & Co. handled the transaction. • Juan Soriano purchased 11,940 square feet of industrial space at 325 Cattlemen Road, Sarasota from Bonus Properties Inc. for $570,000. DeLieto & Associates of the commercial division of Michael Saunders & Co. represented the seller and Davie Greenberg of Ian Black Real Estate represented the buyer.

PASCO COUNTY Settler’s Rest RV Park sold to NHC-FL140LLC, $5,000,000, rental mobile home or RV park, 37549 Alexis St., Zephyrhills, 8768-2466. Panera LLC sold to Realty Income Properties 5, $2,423,500, restaurants, 9405 U.S. 19, Port Richey, 8771-1082. CSMC 2006-C5 Mitchell Boulevard LLC sold to Newport Z LLC, $1,575,000, retail store, 7813 Mitchell Blvd., New Port Richey, 8771-1090.

PINELLAS COUNTY New Bridgetower Associates Limited Partners and Pennsylvania Realty Group FLA Inc. sold to CMS VRE II Flagler LP, $23,211,000, Mortgage: $12,300,000, Berkadia Commercial Mortgage LLC, apartments, 2540 Roy Hanna Drive S., St. Petersburg, 17750-2477. Intelliflex-PSL II LTd., Leder Colker Partnership LLP, Leder Hillsboro Co. Ltd., TSL Bay Vista LLC and Leder-Sparlin Enterprises LLC sold in lieu of foreclosure to Gold Ring Holdings LLC, $17,250,000, several lots, Pinellas Groves, 17745-0161. Zollern Investment Corp. sold to OLP Pinellas Park LLC, $2,810,000, general warehouse and distribution terminal, 9201 MCI Drive, Pinellas Park, 17747-1953.

SARASOTA COUNTY Diamond Senior Living I LLC sold to Decathlon RE Magnolia LLC, $11,884,100, Mortgage: $81,525,000, General Electric Capital Corp., medical charitable institutional, 1507 S. Tuttle Ave., Sarasota, 2012132777. Swauck Co. LLC sold to RSII Properties Inc., $7,400,000, commercial intensive, 7557 S. Tamiami Trail and additional 0.99 acres, residential singlefamily land on a portion of Kai Drive, Sarasota, 2012132023. ABNK Properties LLC sold in lieu of foreclosure to Comm 2006-FL12 Florida SPE LLC, $4,266,000, general commercial, 1590 S. U.S. 41 Bypass, Venice, 2012135007. 3D Realty Florida LLC sold to 4789 Swift Road LLC, $2,965,000, Mortgage: $900,000, Florida Community Bank NA, commercial neighborhood, 4789 Swift Road, Sarasota, 2012134667.

GULF COAST BUSINESS REVIEW NOVEMBER 2 – NOVEMBER 8, 2012

www.review.net

19

INDUSTRY UPDATE by Jim Jett | Contributor

Executives with food distributor Cheney Brothers discussed their plans for a distribution center in Charlotte County at a meeting of the Suncoast Technology Forum Oct. 16 in Punta Gorda. Initially, the company plans to build a 250,000-squarefoot facility near the Charlotte County Airport.

Bill Foley, president and chief operating officer with Cheney Brothers, and Robert Cheyney, president of Cheyney Enterprises.

Dale McKeag, fiber optic sales with Comcast, and Matthew Anderson, president of Milestone Marketing Associates.

Chuck Langley, account development manager with Yale, and Carolyn Freeland, councilmember of the city of Punta Gorda.

Maureen Killeen, director of sales, and Jay Frias, sales manager, both with the Hilton Garden Inn.

Danita Luzadder, CEO at Kitchen Services, and Jenn Perry, president at JJP Holdings.

Terry Rhoades, regional sales manager, and Joe Haber, chief information officer, both with Cheney Brothers.

Ron Struthers, commercial broker associate with Coldwell Banker, and Ravi Ghai, president at Competitive Strategies.

Evan Leibman, network services manager, and Byron Catlin, information services manager, both with Charlotte County.

Jim Fernandez, lease and rental manager, and Richard Mason, lease account manager, both with Wallace Idealease.

1RYHPEHU 6SHFLDO ,VVXH

7(&+12/2*<

6SDFH UHVHUYDWLRQ GHDGOLQH 1RYHPEHU 7KLV VSHFLDO LVVXH ZLOO KLJKOLJKW WKH WHFKQRORJ\ DQG LQQRYDWLRQV WKDW EHQHĂ€W WKH UHJLRQ¡V EXVLQHVV FRPPXQLW\ &RYHUDJH ZLOO LQFOXGH WKH KLJK WHFK PDUNHW RI )ORULGD¡V HQWLUH *XOI &RDVW IURP 7DPSD WR 1DSOHV &DSLWDOL]H RQ WKH RSSRUWXQLW\ WR UHDFK WRS LQGXVWU\ OHDGHUV DQG GHFLVLRQ PDNHUV ZLWK \RXU DGYHUWLVLQJ PHVVDJH

2XU OLQHXS RI VSHFLDO LVVXHV RIIHUV DQ HQWLUH \HDU RI RSSRUWXQLWLHV WR DGYHUWLVH DQG UHDFK )ORULGD¡V *XOI &RDVW EXVLQHVV OHDGHUV 7R UHFHLYH PRUH LQIRUPDWLRQ RU RXU (GLWRULDO &DOHQGDU FDOO 'LDQH 6FKDHIHU DW

ZZZ UHYLHZ QHW

i

ZKHUH %86,1(66 VWDUWV

87293

i

GULF COAST BUSINESS REVIEW NOVEMBER 2 – NOVEMBER 8, 2012

Gulf Coast Bx Review_Oct 26 Issue_Layout 1 10/19/2012 9:21 AM Page 1

www.review.net

Location, Location,

Mercato Cohen & Grigsby has moved to the Mercato. " )() # " ) )') ) " ) ) ! On the move. We make it a top priority to understand your business so we can serve you as trusted legal advisors. We're a law firm with local presence and global reach, including our growing clientele of German-Americans, condominium associations, prominent businesses and non-profit organizations.

Our attorneys practice in numerous areas of the law, including real estate, business advisory, estates and trusts, employment and litigation. Henry C. Cohen Christopher N. Davies Lisa L. Garrett Joshua A. Hajek Jessica I. Horowitz Thad D. Kirkpatrick Jason Hunter Korn David T. Lupo

John E. Lyncheski Felix Mehler Hugh W. Nevin, Jr. Kelley Geraghty Price Richard D. Rosen Robert Rosing Susan Nesbet-Sikuta Andrew I. Solis

)')%%% %

The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you free written information about Cohen & Grigsby's qualifications and experience. 94998

20

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.